nac.htm

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
(Address of principal executive offices) (Zip code)

Kevin J. McCarthy
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
(Name and address of agent for service)

Registrant's telephone number, including area code: (312) 917-7700

Date of fiscal year end: February 29

Date of reporting period: February 29, 2012

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.


 
 

 
 
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Table of Contents
 
Chairman’s Letter to Shareholders
4
   
Portfolio Manager’s Comments
5
   
Fund Leverage and Other Information
12
   
Common Share Dividend and Price Information
15
   
Performance Overviews
17
   
Shareholder Meeting Report
25
   
Report of Independent Registered Public Accounting Firm
31
   
Portfolios of Investments
32
   
Statement of Assets and Liabilities
76
   
Statement of Operations
78
   
Statement of Changes in Net Assets
80
   
Statement of Cash Flows
83
   
Financial Highlights
86
   
Notes to Financial Statements
98
   
Board Members and Officers
117
   
Reinvest Automatically, Easily and Conveniently
122
   
Glossary of Terms Used in this Report
124
   
Additional Fund Information
127

 
 

 
 
Chairman’s
Letter to Shareholders
 
 
Dear Shareholders,
 
In recent months the positive atmosphere in financial markets has reflected efforts by central banks in the US and Europe to provide liquidity to the financial system and keep interest rates low. At the same time, future economic growth in these countries still faces serious headwinds in the form of high energy prices, uncertainties about potential political leadership changes and increasing pressure to reduce government spending regardless of its impact on the economy. Together with the continuing political tensions in the Middle East, investors have many reasons to remain cautious.
 
Though progress has been painfully slow, officials in Europe have taken important steps to address critical issues. The European Central Bank has provided vital liquidity to the banking system. Similarly, officials in the Euro area finally agreed to an enhanced “firewall” of funding to deal with financial crises in member countries. These steps, in addition to the completion of another round of financing for Greece, have eased credit conditions across the Continent. Several very significant challenges remain with the potential to derail the recent progress but European leaders have demonstrated political will and persistence in dealing with their problems.
 
In the US, strong corporate earnings and continued progress on job creation have contributed to a rebound in the equity market and many of the major stock market indexes are approaching their levels before the financial crisis. The Fed’s commitment to an extended period of low interest rates is promoting economic growth, which remains moderate but steady and raises concerns about the future course of long term rates once the program ends. Pre-election maneuvering has added to the highly partisan atmosphere in the Congress. The end of the Bush-era tax cuts and implementation of the spending restrictions of the Budget Control act of 2011, both scheduled to take place at year-end loom closer with little progress being made to deal with them.
 
During the last year investors have experienced a sharp decline and a strong recovery in the equity markets. Experienced investment teams keep their eye on a longer time horizon and use their practiced investment disciplines to negotiate through market peaks and valleys to achieve long term goals for investors. Monitoring this process is an important consideration for the Fund Board as it oversees your Nuveen funds on your behalf.
 
As always, I encourage you to contact your financial consultant if you have any questions about your investment in a Nuveen Fund. On behalf of the other members of your Fund Board, we look forward to continuing to earn your trust in the months and years ahead.
 
Sincerely,
 
 
Robert P. Bremner
Chairman of the Board
April 20, 2012
 
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Portfolio Manager’s Comments
 
Nuveen Insured California Premium Income Municipal Fund, Inc. (NPC)
Nuveen Insured California Premium Income Municipal Fund 2, Inc. (NCL)
Nuveen California Premium Income Municipal Fund (NCU)
Nuveen California Dividend Advantage Municipal Fund (NAC)
Nuveen California Dividend Advantage Municipal Fund 2 (NVX)
Nuveen California Dividend Advantage Municipal Fund 3 (NZH)
Nuveen Insured California Dividend Advantage Municipal Fund (NKL)
Nuveen Insured California Tax-Free Advantage Municipal Fund (NKX)
 
Portfolio manager Scott Romans reviews economic and municipal market conditions at both the national and state levels, key investment strategies and the twelve-month performance of the Nuveen California Funds listed above. Scott, who joined Nuveen in 2000, has managed NCU, NAC, NVX, NZH, NKL and NKX since 2003 and NPC and NCL since 2005.
 
What factors affected the U.S. economic and municipal market environments during the twelve-month reporting period ended February 29, 2012?
 
During this period, the U.S. economy’s progress toward recovery from recession remained modest. The Federal Reserve (Fed) maintained its efforts to improve the overall economic environment by continuing to hold the benchmark fed funds rate at the record low level of zero to 0.25% that it had established in December 2008. At its March 2012 meeting (shortly after the end of this reporting period), the central bank reaffirmed its opinion that economic conditions would likely warrant keeping this rate at “exceptionally low levels” at least through late 2014. The Fed also stated that it would continue its program to extend the average maturity of its holdings of U.S. Treasury securities by purchasing $400 billion of these securities with maturities of six to thirty years and selling an equal amount of U.S. Treasury securities with maturities of three years or less. The goals of this program, which the Fed expects to complete by the end of June 2012, are to lower longer-term interest rates, support a stronger economic recovery, and help ensure that inflation remains at levels consistent with the Fed’s mandates of maximum employment and price stability.
 
In the fourth quarter of 2011, the U.S. economy, as measured by the U.S. gross domestic product (GDP), grew at an annualized rate of 3.0%, the best growth number since the end of second quarter 2010 and the tenth consecutive quarter of positive growth. The Consumer Price Index (CPI) rose 2.9% year-over-year as of February 2012, while the core CPI (which excludes food and energy) increased 2.2% during the same period, edging above the Fed’s unofficial objective of 2.0% or lower for this inflation measure. Labor market conditions have shown some signs of improvement, as national unemployment stood at 8.3% in February 2012, the lowest level in three years, down from 9.0% in February 2011. The housing market continued to be the major weak spot in the economy. For the twelve months ended January 2012 (most recent data available at the time this report was prepared), the average home price in the Standard & Poor’s (S&P)/Case-Shiller Index of 20 major metropolitan areas lost 3.8%, as housing prices hit their lowest levels since early 2003. In addition, the U.S. economic picture continued to be clouded by concerns about the European debt crisis and efforts to reduce the federal deficit.
 
Certain statements in this report are forward-looking statements. Discussions of specific investments are for illustration only and are not intended as recommendations of individual investments. The forward-looking statements and other views expressed herein are those of the portfolio manager as of the date of this report. Actual future results or occurrences may differ significantly from those anticipated in any forward-looking statements, and the views expressed herein are subject to change at any time, due to numerous market and other factors. The Funds disclaim any obligation to update publicly or revise any forward-looking statements or views expressed herein.
 
Ratings shown are the highest rating given by one of the following national rating agencies: Standard & Poor’s Group, Moody’s Investors Service, Inc. or Fitch, Inc. Credit ratings are subject to change. AAA, AA, A and BBB are investment grade ratings; BB, B, CCC, CC, C and D are below investment grade ratings. Certain bonds backed by U.S. Government or agency securities are regarded as having an implied rating equal to the rating of such securities. Holdings designated N/R are not rated by a national rating agency.
 
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Municipal bond prices generally rallied over this period. Historically light issuance of new tax-exempt bonds served as a key driver of performance, as tight supply and strong demand combined to create favorable market conditions for municipal bonds. Concurrent with rising prices, yields declined across most maturities. The depressed level of municipal bond issuance was due in part to the continued impact of the taxable Build America Bonds (BAB) program. Even though the BAB program expired at the end of 2010, issuers had made extensive use of its favorable terms to issue almost $190 billion in taxable BAB bonds during 2009 and 2010, representing approximately 25% of all municipal issuance during that period. Some borrowers accelerated issuance in order to take advantage of the program before its termination, fulfilling their capital program borrowing needs well into 2011 and 2012. This reduced the need for many borrowers to come to market with new tax-exempt issues during this period. The low level of municipal issuance during this period also reflected the current political distaste for additional borrowing by state and local governments and the prevalent atmosphere of municipal budget austerity.
 
Over the twelve months ended February 29, 2012, municipal bond issuance nationwide totaled $307.4 billion, a decrease of 24% compared with issuance during the twelvemonth period ended February 28, 2011. During this period, demand for municipal bonds remained very strong, especially from individual investors.
 
How were the economic and market environments in California during this period?
 
The California economy has shown signs of gaining momentum, with job growth rebounding as increased demand for internet-based services and mobile device applications led to strengthening of the technology and other service sectors. This, in turn, produced improvement in the state’s unemployment rate. As of February 2012, California’s unemployment rate was 10.9%, its lowest level since April 2009, down from 12.0% in February 2011. However, housing, the primary driver of the state’s most recent economic decline, remains a drag on the California economy, with foreclosures continuing to put downward pressure on prices. According to the S&P/Case-Shiller Index, home prices in San Diego, Los Angeles and San Francisco fell 5.3%, 5.4% and 5.9%, respectively, over the twelve months ended January 2012 (the most recent data available at the time this report was prepared). These rates compared with an average decline of 3.8% nationally for the same period. Statewide, home prices in California have lost almost 60% of their value since the peak in 2006. Overall, budget problems posed the largest threat to the state’s economic outlook over the near term, as California continued to be burdened by persistent deficits and spending that outweighed the state’s ability to generate revenues. However, the $120.1 billion act remained structurally unbalanced, relying on revenue assumptions that, if not met, would trigger additional expenditure cuts. When those revenue assumptions were not realized, the state implemented almost $1 billion in trigger cuts effective January 1, 2012, mainly affecting state universities, community colleges and human services. The $137.3 billion budget proposal for fiscal 2013 closes an estimated $9.2 billion gap and assumes additional revenues generated by a voter-approved, five-year temporary tax increase. The budget also calls for spending reductions mainly in the areas of welfare and child care for the poor. As of February 2012, California maintained credit ratings on its general obligation (GO) debt of A1, A-, and A-from Moody’s Investors Service, S&P and Fitch, respectively. For the twelve months ended February 29, 2012, municipal issuance in California totaled $38.5 billion, a
 
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decrease of 33% from the previous twelve months. For this period, California was the second largest state issuer in the nation (behind New York), representing approximately 12.5% of total issuance nationwide.
 
What key strategies were used to manage the California Funds during this reporting period?
 
As previously discussed, municipal bond prices generally rallied nationally during this period, as the supply of tax-exempt bonds remained tight and yields continued to be relatively low. In this environment, we continued to take a bottom-up approach to discovering sectors that appeared undervalued as well as individual credits that had the potential to perform well over the long term and helped us keep our Funds fully invested.
 
Much of our investment activity during this period was opportunistic, with purchases driven by the timing of cash flows from called or maturing bonds. The Funds took advantage of attractive opportunities to add to their holdings in health care as well as California state GO bonds when they came to market in the fall of 2011. In addition, based on recent tobacco consumption data, NCU, NAC, NVX and NZH swapped some of their convertible zero-coupon tobacco holdings for tobacco bonds with better downside profiles in terms of credit outlook. These relative value swaps also benefited the Funds by maintaining yields and recognizing losses for tax purposes. (The insured Funds did not participate in the tobacco swaps because these four Funds cannot purchase sub-investment grade bonds.)
 
We also continued to actively add exposure to redevelopment agency (RDA) bonds, used to fund programs to improve deteriorated, blighted and economically depressed areas in California. In June 2011, two state bills amending the law that created RDAs were approved as part of cost-saving measures to close gaps in the California state budget. Assembly Bill (AB) 26 provided for the dissolution of all RDAs, while AB 27 would allow municipalities to keep their RDAs by committing to substantial community payments to the state. A lawsuit challenging the constitutionality of both bills was filed by an RDA lobbying group in July 2011. In late December 2011, the California Supreme Court ruled that AB 26 was constitutional and ordered the dissolution of all 400 RDAs in the state by February 1, 2012, creating successor agencies and oversight boards to manage obligations (e.g., contracts, bonds, leases) that were in place prior to the dissolution and take title to the RDAs’ housing and other assets. However, the court struck down AB 27, concluding that the provisions that required community payments were not voluntary, and violated the state constitution. During this period, the uncertainty surrounding the fate of the state’s RDAs caused spreads on RDA bonds to widen substantially and prompted RDAs to issue their remaining capacity of bonds. This resulted in heavy issuance of RDA bonds that came to market at attractive prices with higher coupons and very attractive structures, including 10-year call provisions. Consequently, we were able to add some exceptional bonds to our portfolios, purchasing new RDA bonds in the primary market during the first part of this period and buying additional RDA bonds, some of which were insured credits issued prior to 2008, in the secondary market during the last part of this period.
 
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For the Funds with an insured mandate (NPC, NCL, NKL and NKX), finding appropriate insured municipal bonds, especially new insured issues, remained a challenge due to the continued severe decline in insured issuance. Over the past few years, most municipal bond insurers had their credit ratings downgraded, and only one insurer currently insures new municipal bonds. As a result, the supply of insured municipal securities has decreased dramatically. In 2011, issuance of new insured paper accounted for just over 5% of total municipal issuance (compared with a historical levels of 50%), down 43.5% from 2010. Even though NPC, NCL, NKL and NKX may now invest up to 20% of their net assets in uninsured investment-grade credits rated BBB- or higher, the combination of tight municipal supply, little insured issuance and relatively lower yields meant few attractive opportunities for these Funds during this period.
 
Cash for new purchases during this period was generated primarily by the proceeds from called and maturing bonds. An elevated number of bond calls provided a meaningful source of liquidity, which drove much of our activity as we worked to redeploy the proceeds to keep the Funds fully invested. In addition, we sold selected bonds with very short effective maturities on the occasions when we needed additional cash to take advantage of attractive opportunities.
 
As of February 29, 2012, all of these Funds continued to use inverse floating rate securities. We employ inverse floaters for a variety of reasons, including duration management, income enhancement and total return enhancement. As part of our duration management strategies, NCL also used forward interest rate swaps to reduce price volatility risk to movements in U.S. interest rates relative to the Fund’s benchmarks. The forward interest rate swaps were removed from NCL during the first half of this period as the Fund’s duration approached our targeted range. Prior to their removal, these derivatives functioned as intended.
 
How did the Funds perform during the twelve-month period ended February 29, 2012?
 
Individual results for these Nuveen California Funds, as well as relevant index and peer group information, are presented in the accompanying table.
 
Average Annual Total Returns on Common Share Net Asset Value
For periods ended 2/29/12
 
 
1-Year
5-Year
10-Year
Uninsured Funds
     
NCU
25.65%
6.45%
6.66%
NAC
25.30%
5.66%
6.53%
NVX
22.90%
6.25%
6.69%
NZH
22.89%
4.66%
6.06%
       
Standard & Poor’s (S&P) California Municipal Bond Index*
14.84%
5.17%
5.38%
Standard & Poor’s (S&P) National Municipal Bond Index*
12.87%
5.19%
5.36%
Lipper California Municipal Debt Funds Classification Average*
25.87%
4.71%
6.17%
 
 
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 Performance Overview page for your Fund in this report.
   
*
Refer to Glossary of Terms Used in This Report for definitions.
 
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1-Year
5-Year
10-Year
Insured Funds
     
NPC
24.47%
6.31%
6.22%
NCL
25.33%
6.30%
6.24%
NKL
24.87%
6.59%
N/A
NKX
21.95%
5.18%
N/A
       
Standard & Poor’s (S&P) California Municipal Bond Index*
14.84%
5.17%
5.38%
Standard & Poor’s (S&P) Insured National Municipal Bond Index*
13.78%
5.24%
5.41%
Lipper Single-State Insured Municipal Debt Funds Classification Average*
21.81%
5.94%
6.06%
 
For the twelve months ended February 29, 2012, the total returns on common share net asset value (NAV) for all of these Funds exceeded the return for the Standard & Poor’s (S&P) California Municipal Bond Index. The uninsured Funds also outperformed the S&P National Municipal Bond Index, while the insured Funds outperformed the Standard & Poor’s (S&P) Insured National Municipal Bond Index. For this same period, NCU and NAC trailed the return for the Lipper California Municipal Debt Funds Classification Average by a narrow margin, while NVX and NZH also lagged the Lipper group. All four of the insured Funds exceeded the Lipper Single-State Insured Municipal Debt Funds Classification Average return.
 
Key management factors that influenced the Funds’ returns during this period included duration and yield curve positioning, credit exposure and sector allocation. The use of leverage also was an important positive factor affecting the Funds’ performance. Leverage is discussed in more detail later in this report.
 
During this period, municipal bonds with longer maturities generally outperformed those with shorter maturities. Overall, credits at the longest end of the municipal yield curve posted the strongest returns, while bonds at the shortest end produced the weakest results. The Funds’ duration and yield curve positionings were the most important determinants of performance during this period. On the whole, NAC and NCL, which had the longest durations among the uninsured and insured Funds, respectively, were the most advantageously positioned in terms of duration and yield curve exposure. The performance of the remaining six Funds benefited in proportion to their allocations along the longer end of the yield curve.
 
Credit exposure also played a role in performance during these twelve months, as lower-rated bonds, especially those rated BBB, generally outperformed higher-quality bonds rated AAA and AA. This outperformance was due in part to the greater demand for lower-rated bonds as investors looked for investments offering higher yields. All four of the uninsured Funds benefited from their credit exposure during this period. However, in accordance with their investment policies, the insured Funds have not had the same opportunities to invest in lower-rated credits until recently, and they tended to be underweighted in bonds rated BBB and overweighted in bonds rated AAA and AA. This combination detracted from their performance for the period.
 
Holdings that generally made positive contributions to the Funds’ returns during this period included zero coupon bonds, health care, industrial development revenue (IDR), transportation and special tax credits. Leasing and education bonds also outpaced the general municipal market for the period, while water and sewer credits just edged past the municipal market average. All of the uninsured Funds were overweighted in health care, which boosted their performance, as did their overall sector allocations.
 
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In contrast, pre-refunded bonds, which are often backed by U.S. Treasury securities, were the poorest performing market segment during this period. The underperformance of these bonds can be attributed primarily to their shorter effective maturities and higher credit quality. As of February 29, 2012, NPC had the heaviest weighting in pre-refunded bonds among all eight of these Funds, which hampered its performance, while NCL had the smallest allocation to these bonds. Among the uninsured Funds, NVX and NZH had heavier weightings in pre-refunded bonds than NCU and NAC. The electric utilities, housing and resource recovery sectors and California state GOs also lagged the performance of the general municipal market for this period. All of these Funds were underweighted to varying degrees in the tax-supported sector, especially California state GOs, relative to the California market, which lessened the negative impact of these holdings. This underweighting was due to the fact that California state GOs comprise such a large portion of the tax-supported sector in California that it is impossible to match the market weighting in our portfolios.
 
In addition, NCU and NKX each held individual credits that impacted their performance during this period. In NCU, the Fund’s holdings of Downey Regional Medical Center began the period as a distressed credit. Following an acquisition near the end of the period, the hospital bonds were refunded at par. NCU held a significant position in these credits, and their recovery benefited its performance. In NKX, the Fund’s holdings of lease revenue bonds issued by the Stockton Public Finance Authority had a negative impact on the Fund’s performance after news of the city of Stockton’s financial problems became public and the city’s credit ratings were cut. Stockton has now entered a new state-mandated mediation program where municipalities work with creditors to address fiscal challenges rather than declaring bankruptcy. It is also important to note that the Stockton lease revenue bonds are insured by National Public Finance Guarantee, which has stated that it will make payments on the bonds if there is any interruption in payments from the issuer.
 
APPROVED FUND MERGERS
 
After the close of this reporting period, the Funds’ shareholders approved a series of reorganizations and changes to certain investment policies for the four Nuveen California insured closed-end Funds.
 
The approved changes to each Fund’s investment policies were intend to increase the Funds’ flexibility regarding the types of securities available for investment.
 
The investment policy changes are summarized as follows:
 
Each Fund eliminated the investment policy requiring it, under normal circumstances, to invest at least 80 percent of its managed assets in municipal securities that are covered by insurance which currently guarantees the timely payment of principal and interest.
   
Each Fund adopted a new investment policy requiring it, under normal circumstances, to invest at least 80 percent of its managed assets in municipal securities that pay interest exempt from federal and California income tax.

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Each Fund eliminated the old fundamental loan policy and adopted a new fundamental loan policy, which states that each Fund may not make loans, except as permitted by the Investment Company Act of 1940, as amended, and exemptive orders granted under the Investment Company Act of 1940, as amended.
   
Each Fund will continue to invest substantially all (at least 80 percent) of its managed assets in investment grade quality municipal securities.
   
Nuveen Insured California Tax-Free Advantage Municipal Fund (NKX) will continue its policy of investing, under normal circumstances, at least 80% of its assets in AMT-free municipal securities.
 
In addition shareholders approved the reorganization of the Funds as follows:
 
 
Acquired Funds
Acquiring Fund
     
Nuveen Insured California Premium
 
 
Income Municipal Fund, Inc. (NPC)
 
Nuveen Insured California Premium
Nuveen California AMT Free
 
Income Municipal Fund 2, Inc. (NCL)
Municipal Income Fund (NKX)
Nuveen Insured California Dividend
 
 
Advantage Municipal Fund (NKL)
 
 
The reorganizations will be consummated before the opening of business on May 7, 2012. Upon the closing of the reorganizations, the Acquired Funds will transfer substantially all of their assets to the Acquiring Fund in exchange for common and preferred shares of the Acquiring Fund, and the assumption by the Acquiring Fund of the liabilities of the Acquired Funds. The Acquired Funds will then be liquidated, dissolved and terminated in accordance with their Declaration of Trust. The Acquiring Fund will change its name to Nuveen California AMT Free Municipal Income Fund (NKX).
 
Shareholders of the Acquired Funds will become shareholders of the Acquiring Fund. Holders of common shares will receive newly issued common shares of the Acquiring Fund, the aggregate net asset value of which will be equal to the aggregate net asset value of the common shares of the Acquired Funds held immediately prior to the reorganizations (including for this purpose fractional Acquiring Fund shares to which shareholders would be entitled). Fractional shares will be sold on the open market and shareholders will receive cash in lieu of such fractional shares. Holders of VRDP Shares of each Acquired Fund will receive on a one-for-one basis newly issued VRDP Shares of the Acquiring Fund, in exchange for VRDP Shares of the Acquired Fund held immediately prior to the reorganization, with such new Acquiring Fund VRDP Shares having substantially the same terms as the exchanged VRDP Shares of the Acquired Funds.
 
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Fund Leverage and
Other Information
 
IMPACT OF THE FUNDS’ LEVERAGE STRATEGIES ON PERFORMANCE
 
One important factor impacting the return of the Funds relative to their benchmarks was the Funds’ use of leverage. The Funds use leverage because their managers believe that, over time, leveraging provides opportunities for additional income and total return for common shareholders. However, use of leverage also can expose common shareholders to additional volatility. For example, as the prices of securities held by a Fund decline, the negative impact of these valuation changes on common share net asset value and common shareholder total return is magnified by the use of leverage. Conversely, leverage may enhance common share returns during periods when the prices of securities held by a Fund generally are rising. Leverage had a positive impact on the performance of the Funds over this reporting period.
 
THE FUNDS’ REGULATORY LEVERAGE
 
As of February 29, 2012, each of the Funds has redeemed all of their outstanding auction rate preferred shares (ARPS) at liquidation value.
 
As of February 29, 2012, the Funds have issued and outstanding MuniFund Term Preferred (MTP) Shares and Variable Rate Demand Preferred (VRDP) Shares as shown in the accompanying tables.
 
MTP Shares
 
          MTP Shares Issued    
Annual
 
NYSE
 
Fund
   
Series
  at Liquidation Value    
Interest Rate
 
Ticker
 
NCU
   
2015
 
$
35,250,000
   
2.00
%
 
NCU PrC
 
NVX
   
2014
 
$
42,846,300
   
2.35
%
 
NVX PrA
 
NVX
   
2015
 
$
55,000,000
   
2.05
%
 
NVX PrC
 
NZH
   
2014
 
$
27,000,000
   
2.35
%
 
NZH PrA
 
NZH
   
2014-1
 
$
46,294,500
   
2.25
%
 
NZH PrB
 
NZH
   
2015
 
$
86,250,000
   
2.95
%
 
NZH PrC
 
 
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VRDP Shares
 
 
VRDP Shares Issued
Fund
at Liquidation Value
NPC
 
$
42,700,000
NCL
 
$
74,000,000
NAC
 
$
136,200,000
NKL
 
$
104,400,000
NKX
 
$
35,500,000
 
(Refer to Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies and Footnote 4 – Fund Shares for further details on MTP and VRDP Shares.)
 
As of October 5, 2011, all 84 of the Nuveen closed-end municipal funds that had issued ARPS, approximately $11.0 billion, have redeemed at liquidation value all of these shares.
 
For up-to-date information, please visit the Nuveen CEF Auction Rate Preferred Resource Center at: http://www.nuveen.com/arps.
 
UPDATE ON LITIGATION REGARDING THE FUNDS’ REDEMPTION OF AUCTION RATE PREFERRED SHARES
 
During 2011, certain funds (including NKX) were named in a consolidated complaint as nominal defendants in a putative shareholder derivative action captioned Martin Safier, et al. v. Nuveen Asset Management, et al. that was filed in the Circuit Court of Cook County, Illinois, Chancery Division (the “Cook County Chancery Court”) on February 18, 2011 (the “Complaint”). The Complaint, filed on behalf of purported holders of each fund’s common shares, also named Nuveen Fund Advisors, Inc. as a defendant, together with current and former Officers and interested Directors/Trustees of each of the funds (together with the nominal defendants, collectively, the “Defendants”). The Complaint contained allegations regarding breaches of fiduciary duties in connection with the redemption of auction rate preferred shares issued by the funds. The Defendants filed a motion to dismiss the suit and on December 16, 2011, the court granted that motion dismissing the Complaint. The plaintiffs failed to file an appeal of the court’s decision within the required time period, resulting in the final disposition of the suit.
 
RISK CONSIDERATIONS
 
Fund shares are not guaranteed or endorsed by any bank or other insured depository institution, and are not federally insured by the Federal Deposit Insurance Corporation. Past performance is no guarantee of future results. Fund common shares are subject to a variety of risks, including:
 
Investment and Market Risk. An investment in common shares is subject to investment risk, including the possible loss of the entire principal amount that you invest. Your investment in common shares represents an indirect investment in the municipal securities owned by the Fund, which generally trade in the over-the-counter markets. Your common shares at any point in time may be worth less than your original investment, even after taking into account the reinvestment of Fund dividends and distributions.
 
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13

 
 

 
 
Price Risk. Shares of closed-end investment companies like these Funds frequently trade at a discount to their NAV. Your common shares at any point in time may be worth less than your original investment, even after taking into account the reinvestment of Fund dividends and distributions.
 
Leverage Risk. Each Fund’s use of leverage creates the possibility of higher volatility for the Fund’s per share NAV, market price, distributions and returns. There is no assurance that a Fund’s leveraging strategy will be successful.
 
Tax Risk. The tax treatment of Fund distributions may be affected by new IRS interpretations of the Internal Revenue Code and future changes in tax laws and regulations.
 
Issuer Credit Risk. This is the risk that a security in a Fund’s portfolio will fail to make dividend or interest payments when due.
 
Interest Rate Risk. Fixed-income securities such as bonds, preferred, convertible and other debt securities will decline in value if market interest rates rise.
 
Reinvestment Risk. If market interest rates decline, income earned from a Fund’s portfolio may be reinvested at rates below that of the original bond that generated the income.
 
Call Risk or Prepayment Risk. Issuers may exercise their option to prepay principal earlier than scheduled, forcing a Fund to reinvest in lower-yielding securities.
 
Inverse Floater Risk. The Funds invest in inverse floaters. Due to their leveraged nature, these investments can greatly increase a Fund’s exposure to interest rate risk and credit risk. In addition, investments in inverse floaters involve the risk that the Fund could lose more than its original principal investment.
 
14
 
Nuveen Investments

 
 

 
 
Common Share Dividend
and Price Information
 
DISTRIBUTION INFORMATION
 
During the twelve-month reporting period ended February 29, 2012, NCL, NAC, NKL and NKX each had one monthly dividend increase, while the dividends of NPC, NCU, NVX and NZH remained stable throughout the reporting period.
 
Due to normal portfolio activity, common shareholders of the following Funds received capital gains and/or net ordinary income distributions in December 2011 as follows:
 
Short-Term Capital Gains
 
Long-Term Capital Gains
and/or Ordinary Income
 
Fund
(per share)
 
(per share)
 
NPC
 
$
0.0780
 
$
0.0240
 
NCL
   
 
$
0.0118
 
NAC
   
 
$
0.0045
 
NKL
   
 
$
0.0053
 
 
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 29, 2012, all of the Funds in this report had positive UNII balances for both tax and financial reporting purposes.
 
 Nuveen Investments
 
15

 
 

 
 
COMMON SHARE REPURCHASES AND PRICE INFORMATION
 
As of February 29, 2012, and since the inception of the Funds’ repurchase program, the following Funds have cumulatively repurchased and retired common shares as shown in the accompanying table. Since the inception of the Fund’s repurchase programs, NAC and NKX have not redeemed any of their outstanding common shares.
 
 
Common Shares
% of Outstanding
Fund
Repurchased and Retired
Common Shares
NPC
17,700
0.3%
NCL
55,700
0.4%
NCU
44,500
0.8%
NAC
NVX
50,700
0.3%
NZH
12,900
0.1%
NKL
32,700
0.2%
NKX
 
During the twelve-month reporting period, the Funds did not repurchase any of their outstanding common shares.
 
As of February 29, 2012, the Funds’ common share prices were trading at (+) premiums or (-) discounts to their common share NAVs as shown in the accompanying table.
 
 
2/29/12
Twelve-Month Average
Fund
(+)Premium/(-)Discount
(-)Discount
NPC
(+)1.07%
(-)2.41%
NCL
(+)2.54%
(-)2.14%
NCU
(-)1.05%
(-)5.57%
NAC
(+)1.82%
(-)3.08%
NVX
(+)0.58%
(-)3.20%
NZH
(+)3.16%
(-)2.08%
NKL
(+)2.50%
(-)1.01%
NKX
(+)2.24%
(-)5.56%
 
16
 
Nuveen Investments

 
 

 

NPC
 
Nuveen Insured California
Performance
 
Premium Income
OVERVIEW
 
Municipal Fund, Inc.
   
as of February 29, 2012
 
 
Fund Snapshot
       
Common Share Price
 
$
16.06
 
Common Share Net Asset Value (NAV)
 
$
15.89
 
Premium/(Discount) to NAV
   
1.07
%
Market Yield
   
5.42
%
Taxable-Equivalent Yield1
   
8.30
%
Net Assets Applicable to Common Shares ($000)
 
$
102,481
 
         
Leverage
       
Regulatory Leverage
   
29.41
%
Effective Leverage
   
35.25
%

Average Annual Total Returns
             
(Inception 11/19/92)
             
   
On Share Price
 
On NAV
1-Year
   
29.53
%
 
24.47
%
5-Year
   
7.72
%
 
6.31
%
10-Year
   
6.59
%
 
6.22
%

Portfolio Composition4
       
(as a % of total investments)
       
Tax Obligation/Limited
   
36.2
%
Tax Obligation/General
   
21.1
%
U.S. Guaranteed
   
18.4
%
Water and Sewer
   
14.6
%
Other
   
9.7
%
         
Insurers4
       
(as a % of total Insured investments)
       
NPFG5
   
28.5
%
AMBAC
   
25.5
%
FGIC
   
18.8
%
AGM
   
17.3
%
AGC
   
7.7
%
SYNCORA GTY
   
2.2
%
 
 
Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this Fund’s Performance Overview page.
1
Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 34.7%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower.
2
The Fund intends to invest at least 80% of its managed assets in municipal securities that are covered by insurance guaranteeing the timely payment of principal and interest. See Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies, Insurance for more information. At the end of the reporting period, 82% of the Fund’s total investments are invested in Insured securities.
3
Ratings shown are the highest rating given by one of the following national rating agencies: Standard & Poor’s Group, Moody’s Investors Service, Inc. or Fitch, Inc. Credit ratings are subject to change. AAA, AA, A, and BBB are investment grade ratings; BB, B, CCC, CC, C and D are below-investment grade ratings. Certain bonds backed by U.S. Government or agency securities are regarded as having an implied rating equal to the rating of such securities. Holdings designated N/R are not rated by a national rating agency.
4
Holdings are subject to change.
5
MBIA’s public finance subsidiary.
6
The Fund paid shareholders a net ordinary income distribution and a capital gains distribution in December 2011 of $0.024 and $0.078 per share.
 
Nuveen Investments
 
17

 
 

 

NCL
 
Nuveen Insured California
Performance
 
Premium Income
OVERVIEW
 
Municipal Fund 2, Inc.
   
as of February 29, 2012
 
 
Fund Snapshot
       
Common Share Price
 
$
15.76
 
Common Share Net Asset Value (NAV)
 
$
15.37
 
Premium/(Discount) to NAV
   
2.54
%
Market Yield
   
5.75
%
Taxable-Equivalent Yield1
   
8.81
%
Net Assets Applicable to Common Shares ($000)
 
$
194,712
 
         
Leverage
       
Regulatory Leverage
   
27.54
%
Effective Leverage
   
36.48
%

Average Annual Total Returns
             
(Inception 3/18/93)
             
   
On Share Price
 
On NAV
1-Year
   
35.03
%
 
25.33
%
5-Year
   
8.41
%
 
6.30
%
10-Year
   
6.78
%
 
6.24
%

Portfolio Composition4
       
(as a % of total investments)
       
Tax Obligation/Limited
   
44.3
%
Tax Obligation/General
   
21.4
%
Water and Sewer
   
14.0
%
Utilities
   
5.5
%
Other
   
14.8
%
         
Insurers4
       
(as a % of total Insured investments)
       
AMBAC
   
29.6
%
AGM
   
20.6
%
FGIC
   
19.0
%
NPFG5
   
17.9
%
AGC
   
12.3
%
SYNCORA GTY
   
0.6
%
 
 
Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this Fund’s Performance Overview page.
1
Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 34.7%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower.
2
The Fund intends to invest at least 80% of its managed assets in municipal securities that are covered by insurance guaranteeing the timely payment of principal and interest. See Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies, Insurance for more information. At the end of the reporting period, 90% of the Fund’s total investments are invested in Insured securities.
3
Ratings shown are the highest rating given by one of the following national rating agencies: Standard & Poor’s Group, Moody’s Investors Service, Inc. or Fitch, Inc. Credit ratings are subject to change. AAA, AA, A, and BBB are investment grade ratings; BB, B, CCC, CC, C and D are below-investment grade ratings. Certain bonds backed by U.S. Government or agency securities are regarded as having an implied rating equal to the rating of such securities. Holdings designated N/R are not rated by a national rating agency.
4
Holdings are subject to change.
5
MBIA’s public finance subsidiary.
6
The Fund paid shareholders a net ordinary income distribution in December 2011 of $0.0118 per share.
 
18
 
Nuveen Investments

 
 

 

NCU
 
Nuveen California
Performance
 
Premium Income
OVERVIEW
 
Municipal Fund
   
as of February 29, 2012
 
 
Fund Snapshot
       
Common Share Price
 
$
15.15
 
Common Share Net Asset Value (NAV)
 
$
15.31
 
Premium/(Discount) to NAV
   
-1.05
%
Market Yield
   
5.74
%
Taxable-Equivalent Yield1
   
8.79
%
Net Assets Applicable to Common Shares ($000)
 
$
87,755
 
         
Leverage
       
Regulatory Leverage
   
28.66
%
Effective Leverage
   
36.79
%

Average Annual Total Returns
             
(Inception 6/18/93)
             
   
On Share Price
 
On NAV
1-Year
   
31.68
%
 
25.65
%
5-Year
   
7.64
%
 
6.45
%
10-Year
   
7.12
%
 
6.66
%

Portfolio Composition3
       
(as a % of total investments)
       
Tax Obligation/Limited
   
28.8
%
Health Care
   
21.9
%
Tax Obligation/General
   
19.5
%
U.S. Guaranteed
   
7.0
%
Water and Sewer
   
5.0
%
Consumer Staples
   
4.3
%
Other
   
13.5
%
 
 
Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this Fund’s Performance Overview page.
1
Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 34.7%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower.
2
Ratings shown are the highest rating given by one of the following national rating agencies: Standard & Poor’s Group, Moody’s Investors Service, Inc. or Fitch, Inc. Credit ratings are subject to change. AAA, AA, A, and BBB are investment grade ratings; BB, B, CCC, CC, C and D are below-investment grade ratings. Certain bonds backed by U.S. Government or agency securities are regarded as having an implied rating equal to the rating of such securities. Holdings designated N/R are not rated by a national rating agency.
3
Holdings are subject to change.
 
Nuveen Investments
 
19

 
 

 

NAC
 
Nuveen California
Performance
 
Dividend Advantage
OVERVIEW
 
Municipal Fund
   
as of February 29, 2012
 
 
Fund Snapshot
       
Common Share Price
 
$
15.14
 
Common Share Net Asset Value (NAV)
 
$
14.87
 
Premium/(Discount) to NAV
   
1.82
%
Market Yield
   
6.10
%
Taxable-Equivalent Yield1
   
9.34
%
Net Assets Applicable to Common Shares ($000)
 
$
349,203
 
         
Leverage
       
Regulatory Leverage
   
28.06
%
Effective Leverage
   
33.74
%

Average Annual Total Returns
             
(Inception 5/26/99)
             
   
On Share Price
 
On NAV
1-Year
   
32.82
%
 
25.30
%
5-Year
   
6.16
%
 
5.66
%
10-Year
   
7.43
%
 
6.53
%

Portfolio Composition3
       
(as a % of total investments)
       
Tax Obligation/Limited
   
26.8
%
Health Care
   
20.6
%
Tax Obligation/General
   
17.5
%
U.S. Guaranteed
   
8.9
%
Water and Sewer
   
6.6
%
Education and Civic Organizations
   
5.4
%
Other
   
14.2
%
 
 
Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this Fund’s Performance Overview page.
1
Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 34.7%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower.
2
Ratings shown are the highest rating given by one of the following national rating agencies: Standard & Poor’s Group, Moody’s Investors Service, Inc. or Fitch, Inc. Credit ratings are subject to change. AAA, AA, A, and BBB are investment grade ratings; BB, B, CCC, CC, C and D are below-investment grade ratings. Certain bonds backed by U.S. Government or agency securities are regarded as having an implied rating equal to the rating of such securities. Holdings designated N/R are not rated by a national rating agency.
3
Holdings are subject to change.
4
The Fund paid shareholders a net ordinary income distribution in December 2011 of $0.0045 per share.
 
20
 
Nuveen Investments

 
 

 

NVX
 
Nuveen California
Performance
 
Dividend Advantage
OVERVIEW
 
Municipal Fund 2
   
as of February 29, 2012
 
 
Fund Snapshot
       
Common Share Price
 
$
15.58
 
Common Share Net Asset Value (NAV)
 
$
15.49
 
Premium/(Discount) to NAV
   
0.58
%
Market Yield
   
6.16
%
Taxable-Equivalent Yield1
   
9.43
%
Net Assets Applicable to Common Shares ($000)
 
$
228,474
 
         
Leverage
       
Regulatory Leverage
   
29.98
%
Effective Leverage
   
37.66
%

Average Annual Total Returns
             
(Inception 3/27/01)
             
   
On Share Price
 
On NAV
1-Year
   
30.01
%
 
22.90
%
5-Year
   
7.11
%
 
6.25
%
10-Year
   
7.36
%
 
6.69
%

Portfolio Composition3
       
(as a % of total investments)
       
Health Care
   
17.4
%
Tax Obligation/General
   
16.9
%
Tax Obligation/Limited
   
14.3
%
U.S. Guaranteed
   
13.7
%
Water and Sewer
   
7.2
%
Education and Civic Organizations
   
6.4
%
Transportation
   
6.0
%
Utilities
   
5.9
%
Consumer Staples
   
5.1
%
Other
   
7.1
%
 
 
Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this Fund’s Performance Overview page.
1
Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 34.7%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower.
2
Ratings shown are the highest rating given by one of the following national rating agencies: Standard & Poor’s Group, Moody’s Investors Service, Inc. or Fitch, Inc. Credit ratings are subject to change. AAA, AA, A, and BBB are investment grade ratings; BB, B, CCC, CC, C and D are below-investment grade ratings. Certain bonds backed by U.S. Government or agency securities are regarded as having an implied rating equal to the rating of such securities. Holdings designated N/R are not rated by a national rating agency.
3
Holdings are subject to change.
 
Nuveen Investments
 
21

 
 

 

NZH
 
Nuveen California
Performance
 
Dividend Advantage
OVERVIEW
 
Municipal Fund 3
   
as of February 29, 2012
 
 
Fund Snapshot
       
Common Share Price
 
$
14.35
 
Common Share Net Asset Value (NAV)
 
$
13.91
 
Premium/(Discount) to NAV
   
3.16
%
Market Yield
   
6.27
%
Taxable-Equivalent Yield1
   
9.60
%
Net Assets Applicable to Common Shares ($000)
 
$
335,830
 
         
Leverage
       
Regulatory Leverage
   
32.21
%
Effective Leverage
   
39.27
%

Average Annual Total Returns
             
(Inception 9/25/01)
             
   
On Share Price
 
On NAV
1-Year
   
31.93
%
 
22.89
%
5-Year
   
5.63
%
 
4.66
%
10-Year
   
6.93
%
 
6.06
%

Portfolio Composition3
       
(as a % of total investments)
       
Tax Obligation/Limited
   
29.9
%
Health Care
   
22.1
%
U.S. Guaranteed
   
11.3
%
Tax Obligation/General
   
9.2
%
Consumer Staples
   
5.7
%
Education and Civic Organizations
   
4.4
%
Water and Sewer
   
4.3
%
Other
   
13.1
%
 
 
Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this Fund’s Performance Overview page.
1
Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 34.7%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower.
2
Ratings shown are the highest rating given by one of the following national rating agencies: Standard & Poor’s Group, Moody’s Investors Service, Inc. or Fitch, Inc. Credit ratings are subject to change. AAA, AA, A, and BBB are investment grade ratings; BB, B, CCC, CC, C and D are below-investment grade ratings. Certain bonds backed by U.S. Government or agency securities are regarded as having an implied rating equal to the rating of such securities. Holdings designated N/R are not rated by a national rating agency.
3
Holdings are subject to change.
 
22
 
Nuveen Investments

 
 

 

NKL
 
Nuveen Insured California
Performance
 
Dividend Advantage
OVERVIEW
 
Municipal Fund
   
as of February 29, 2012
 
 
Fund Snapshot
       
Common Share Price
 
$
16.42
 
Common Share Net Asset Value (NAV)
 
$
16.02
 
Premium/(Discount) to NAV
   
2.50
%
Market Yield
   
6.07
%
Taxable-Equivalent Yield1
   
9.30
%
Net Assets Applicable to Common Shares ($000)
 
$
244,521
 
         
Leverage
       
Regulatory Leverage
   
29.92
%
Effective Leverage
   
35.05
%

Average Annual Total Returns
             
(Inception 3/25/02)
             
   
On Share Price
 
On NAV
1-Year
   
34.78
%
 
24.87
%
5-Year
   
7.74
%
 
6.59
%
Since Inception
   
7.35
%
 
7.29
%

Portfolio Composition4
       
(as a % of total investments)
       
Tax Obligation/Limited
   
32.1
%
Tax Obligation/General
   
27.3
%
Water and Sewer
   
11.8
%
U.S. Guaranteed
   
11.3
%
Health Care
   
5.3
%
Utilities
   
5.2
%
Other
   
7.0
%
         
Insurers4
       
(as a % of total Insured investments)
       
AGM
   
31.2
%
AMBAC
   
24.7
%
FGIC
   
15.8
%
NPFG5
   
14.8
%
SYNCORA GTY
   
6.6
%
AGC
   
6.6
%
ACA
   
0.3
%
 
 
Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this Fund’s Performance Overview page.
1
Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 34.7%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower.
2
The Fund intends to invest at least 80% of its managed assets in municipal securities that are covered by insurance guaranteeing the timely payment of principal and interest. See Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies, Insurance for more information. At the end of the reporting period, 83% of the Fund’s total investments are invested in Insured securities.
3
Ratings shown are the highest rating given by one of the following national rating agencies: Standard & Poor’s Group, Moody’s Investors Service, Inc. or Fitch, Inc. Credit ratings are subject to change. AAA, AA, A, and BBB are investment grade ratings; BB, B, CCC, CC, C and D are below-investment grade ratings. Certain bonds backed by U.S. Government or agency securities are regarded as having an implied rating equal to the rating of such securities. Holdings designated N/R are not rated by a national rating agency.
4
Holdings are subject to change.
5
MBIA’s public finance subsidiary.
6
The Fund paid shareholders a net ordinary income distribution in December 2011 of $0.0053 per share.
 
Nuveen Investments
 
23

 
 

 
 
NKX
 
Nuveen Insured California
Performance
 
Tax-Free Advantage
OVERVIEW
 
Municipal Fund
   
as of February 29, 2012
 
 
Fund Snapshot
       
Common Share Price
 
$
15.06
 
Common Share Net Asset Value (NAV)
 
$
14.73
 
Premium/(Discount) to NAV
   
2.24
%
Market Yield
   
5.66
%
Taxable-Equivalent Yield1
   
8.67
%
Net Assets Applicable to Common Shares ($000)
 
$
86,731
 
         
Leverage
       
Regulatory Leverage
   
29.04
%
Effective Leverage
   
34.05
%

Average Annual Total Returns
             
(Inception 11/21/02)
             
   
On Share Price
 
On NAV
1-Year
   
36.10
%
 
21.95
%
5-Year
   
6.54
%
 
5.18
%
Since Inception
   
5.98
%
 
6.01
%

Portfolio Composition4
       
(as a % of total investments)
       
Tax Obligation/Limited
   
34.1
%
Health Care
   
17.4
%
U.S. Guaranteed
   
14.5
%
Tax Obligation/General
   
8.8
%
Water and Sewer
   
7.7
%
Transportation
   
5.9
%
Long-Term Care
   
5.0
%
Other
   
6.6
%
         
Insurers4
       
(as a % of total Insured investments)
       
AMBAC
   
42.7
%
NPFG5
   
18.9
%
AGM
   
14.7
%
AGC
   
9.2
%
FGIC
   
8.1
%
BHAC
   
5.4
%
SYNCORA GTY
   
1.0
%
 
 
Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this Fund’s Performance Overview page.
1
Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 34.7%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower.
2
The Fund intends to invest at least 80% of its managed assets in municipal securities that are covered by insurance guaranteeing the timely payment of principal and interest. See Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies, Insurance for more information. At the end of the reporting period, 78% of the Fund’s total investments are invested in Insured securities.
3
Ratings shown are the highest rating given by one of the following national rating agencies: Standard & Poor’s Group, Moody’s Investors Service, Inc. or Fitch, Inc. Credit ratings are subject to change. AAA, AA, A, and BBB are investment grade ratings; BB, B, CCC, CC, C and D are below-investment grade ratings. Certain bonds backed by U.S. Government or agency securities are regarded as having an implied rating equal to the rating of such securities. Holdings designated N/R are not rated by a national rating agency.
4
Holdings are subject to change.
5
MBIA’s public finance subsidiary.
 
24
 
Nuveen Investments

 
 

 

NPC
 
Shareholder Meeting Report
NCL
   
NCU
 
The annual meeting of shareholders for NCU, NAC, NVX and NZH was held in the offices of Nuveen Investments on November 15, 2011; at this meeting the shareholders were asked to vote on the election of Board Members, the elimination of Fundamental Investment Policies and the approval of new Fundamental Investment Policies. The meeting was subsequently adjourned to December 16, 2011. The meeting for NVX was additionally adjourned to January 31, 2012.
   
The annual meeting of shareholders for NPC, NCL, NKL and NKX was held in the offices of Nuveen Investments on February 24, 2012; at this meeting the shareholders were asked to vote on the election of Board Members, the elimination of Fundamental Investment Policies, the approval of new Fundamental Investment Policies and the approval of an Agreement and Plan of Reorganization. The meeting was subsequently adjourned to March 30, 2012.

   
NPC
 
NCL
 
NCU
 
   
Common and
Preferred
shares voting
together
as a class
 
Preferred
shares voting
together
as a class
 
Common and
Preferred
shares voting
together
as a class
 
Preferred
shares voting
together
as a class
 
Common and
Preferred
shares voting
together
as a class
 
Preferred
shares voting
together
as a class
 
To approve the Agreement and Plan of Reorganization.
                                     
For
   
3,291,576
   
427
   
6,573,781
   
740
   
   
 
Against
   
130,991
   
   
420,457
   
   
   
 
Abstain
   
125,488
   
   
269,671
   
   
   
 
Broker Non-Votes
   
1,029,943
   
   
2,208,503
   
   
   
 
Total
   
4,577,998
   
427
   
9,472,412
   
740
   
   
 
                                       
To approve the issuance of additional common shares.
                                     
For
   
   
   
   
   
   
 
Against
   
   
   
   
   
   
 
Abstain
   
   
   
   
   
   
 
Broker Non-Votes
   
   
   
   
   
   
 
Total
   
   
   
   
   
   
 
                                       
To approve the elimination of the existing fundamental investment policy related to the Fund’s investment of at least 80% of its assets in insured municipal securities.
                                     
For
   
3,140,564
   
427
   
6,453,010
   
740
   
   
 
Against
   
286,637
   
   
536,813
   
   
   
 
Abstain
   
120,854
   
   
274,086
   
   
   
 
Broker Non-Votes
   
1,029,943
   
   
2,208,503
   
   
   
 
Total
   
4,577,998
   
427
   
9,472,412
   
740
   
   
 
                                       
To approve a new fundamental investment policy related to the Fund’s investment of at least 80%of its assets in municipal securities.
                                     
For
   
3,240,899
   
427
   
6,506,979
   
740
   
   
 
Against
   
182,188
   
   
505,824
   
   
   
 
Abstain
   
124,968
   
   
251,106
   
   
   
 
Broker Non-Votes
   
1,029,943
   
   
2,208,503
   
   
   
 
Total
   
4,577,998
   
427
   
9,472,412
   
740
   
   
 
                                       
To approve the elimination of the fundamental policies relating to the Fund’s ability to make loans.
                                     
For
   
3,143,173
   
427
   
6,382,348
   
740
   
3,845,643
   
1,277,924
 
Against
   
279,180
   
   
563,518
   
   
241,976
   
78,621
 
Abstain
   
125,702
   
   
318,043
   
   
102,597
   
14,000
 
Broker Non-Votes
   
1,029,943
   
   
2,208,503
   
   
1,453,355
   
527,864
 
Total
   
4,577,998
   
427
   
9,472,412
   
740
   
5,643,571
   
1,898,409
 
                                       
To approve the new fundamental policy relating to the Fund’s ability to make loans.
                                     
For
   
3,209,392
   
427
   
6,404,965
   
740
   
3,851,482
   
1,277,424
 
Against
   
206,961
   
   
561,762
   
   
238,765
   
79,121
 
Abstain
   
131,702
   
   
297,182
   
   
99,969
   
14,000
 
Broker Non-Votes
   
1,029,943
   
   
2,208,503
   
   
1,453,355
   
527,864
 
Total
   
4,577,998
   
427
   
9,472,412
   
740
   
5,643,571
   
1,898,409
 
 
Nuveen Investments
 
25

 
 

 

NPC
 
Shareholder Meeting Report (continued)
NCL
   
NCU
   

   
NPC
 
NCL
 
NCU
 
   
Common and
Preferred
shares voting
together
as a class
 
Preferred
shares voting
together
as a class
 
Common and
Preferred
shares voting
together
as a class
 
Preferred
shares voting
together
as a class
 
Common and
Preferred
shares voting
together
as a class
 
Preferred
shares voting
together
as a class
 
Approval of the Board Members was reached as follows:
                                     
John P. Amboian
                                     
For
   
5,048,146
   
   
10,001,959
   
   
5,390,182
   
 
Withhold
   
141,859
   
   
368,152
   
   
253,389
   
 
Total
   
5,190,005
   
   
10,370,111
   
   
5,643,571
   
 
Robert P. Bremner
                                     
For
   
5,049,646
   
   
10,002,112
   
   
   
 
Withhold
   
140,359
   
   
367,999
   
   
   
 
Total
   
5,190,005
   
   
10,370,111
   
   
   
 
Jack B. Evans
                                     
For
   
5,048,046
   
   
10,007,232
   
   
   
 
Withhold
   
141,959
   
   
362,879
   
   
   
 
Total
   
5,190,005
   
   
10,370,111
   
   
   
 
William C. Hunter
                                     
For
   
   
427
   
   
740
   
   
1,804,800
 
Withhold
   
   
   
   
   
   
93,609
 
Total
   
   
427
   
   
740
   
   
1,898,409
 
David J. Kundert
                                     
For
   
5,048,246
   
   
10,004,559
   
   
5,380,869
   
 
Withhold
   
141,759
   
   
365,552
   
   
262,702
   
 
Total
   
5,190,005
   
   
10,370,111
   
   
5,643,571
   
 
William J. Schneider
                                     
For
   
   
427
   
   
740
   
   
1,804,800
 
Withhold
   
   
   
   
   
   
93,609
 
Total
   
   
427
   
   
740
   
   
1,898,409
 
Judith M. Stockdale
                                     
For
   
5,041,846
   
   
9,999,412
   
   
   
 
Withhold
   
148,159
   
   
370,699
   
   
   
 
Total
   
5,190,005
   
   
10,370,111
   
   
   
 
Carole E. Stone
                                     
For
   
5,044,646
   
   
10,000,512
   
   
   
 
Withhold
   
145,359
   
   
369,599
   
   
   
 
Total
   
5,190,005
   
   
10,370,111
   
   
   
 
Virginia L. Stringer
                                     
For
   
5,048,946
   
   
10,002,685
   
   
   
 
Withhold
   
141,059
   
   
367,426
   
   
   
 
Total
   
5,190,005
   
   
10,370,111
   
   
   
 
Terence J. Toth
                                     
For
   
5,049,146
   
   
10,001,812
   
   
5,397,583
   
 
Withhold
   
140,859
   
   
368,299
   
   
245,988
   
 
Total
   
5,190,005
   
   
10,370,111
   
   
5,643,571
   
 
 
26
 
Nuveen Investments

 
 

 

NAC
 
NVX
 
NZH
 

   
NAC
 
NVX
 
NZH
 
   
Common and
Preferred
shares voting
together
as a class
 
Preferred
shares voting
together
as a class
 
Common and
Preferred
shares voting
together
as a class
 
Preferred
shares voting
together
as a class
 
Common and
Preferred
shares voting
together
as a class
 
Preferred
shares voting
together
as a class
 
To approve the Agreement and Plan of Reorganization.
                                     
For
   
   
   
   
   
   
 
Against
   
   
   
   
   
   
 
Abstain
   
   
   
   
   
   
 
Broker Non-Votes
   
   
   
   
   
   
 
Total
   
   
   
   
   
   
 
                                       
To approve the issuance of additional common shares.
                                     
For
   
   
   
   
   
   
 
Against
   
   
   
   
   
   
 
Abstain
   
   
   
   
   
   
 
Broker Non-Votes
   
   
   
   
   
   
 
Total
   
   
   
   
   
   
 
                                       
To approve the elimination of the existing fundamental investment policy related to the Fund’s investment of at least 80% of its assets in insured municipal securities.
                                     
For
   
   
   
   
   
   
 
Against
   
   
   
   
   
   
 
Abstain
   
   
   
   
   
   
 
Broker Non-Votes
   
   
   
   
   
   
 
Total
   
   
   
   
   
   
 
                                       
To approve a new fundamental investment policy related to the Fund’s investment of at least 80% of its assets in municipal securities.
                                     
For
   
   
   
   
   
   
 
Against
   
   
   
   
   
   
 
Abstain
   
   
   
   
   
   
 
Broker Non-Votes
   
   
   
   
   
   
 
Total
   
   
   
   
   
   
 
                                       
To approve the elimination of the fundamental policies relating to the Fund’s ability to make loans.
                                     
For
   
10,093,682
   
1,352
   
11,206,563
   
4,025,588
   
16,567,423
   
6,365,782
 
Against
   
361,206
   
   
725,943
   
251,156
   
875,986
   
282,007
 
Abstain
   
371,053
   
   
359,582
   
67,330
   
418,253
   
66,400
 
Broker Non-Votes
   
3,352,320
   
   
3,789,801
   
2,328,989
   
5,570,472
   
2,545,059
 
Total
   
14,178,261
   
1,352
   
16,081,889
   
6,673,063
   
23,432,134
   
9,259,248
 
                                       
To approve the new fundamental policy relating to the Fund’s ability to make loans.
                                     
For
   
10,132,522
   
1,352
   
11,157,230
   
4,003,088
   
16,418,824
   
6,223,102
 
Against
   
380,292
   
   
753,423
   
273,656
   
1,025,811
   
420,187
 
Abstain
   
313,127
   
   
381,434
   
67,330
   
417,025
   
70,900
 
Broker Non-Votes
   
3,352,320
   
   
3,789,802
   
2,328,989
   
5,570,474
   
2,545,059
 
Total
   
14,178,261
   
1,352
   
16,081,889
   
6,673,063
   
23,432,134
   
9,259,248
 
 
Nuveen Investments
 
27

 
 

 

NAC
 
Shareholder Meeting Report (continued)
NVX
   
NZH
   

   
NAC
 
NVX
 
NZH
 
   
Common and
Preferred
shares voting
together
as a class
 
Preferred
shares voting
together
as a class
 
Common and
Preferred
shares voting
together
as a class
 
Preferred
shares voting
together
as a class
 
Common and
Preferred
shares voting
together
as a class
 
Preferred
shares voting
together
as a class
 
Approval of the Board Members was reached as follows:
                                     
John P. Amboian
                                     
For
   
13,822,072
   
   
13,983,321
   
   
22,358,217
   
 
Withhold
   
356,189
   
   
1,555,024
   
   
1,073,917
   
 
Total
   
14,178,261
   
   
15,538,345
   
   
23,432,134
   
 
Robert P. Bremner
                                     
For
   
   
   
   
   
   
 
Withhold
   
   
   
   
   
   
 
Total
   
   
   
   
   
   
 
Jack B. Evans
                                     
For
   
   
   
   
   
   
 
Withhold
   
   
   
   
   
   
 
Total
   
   
   
   
   
   
 
William C. Hunter
                                     
For
   
   
1,352
   
   
4,911,619
   
   
8,740,600
 
Withhold
   
   
   
   
1,174,989
   
   
518,648
 
Total
   
   
1,352
   
   
6,086,608
   
   
9,259,248
 
David J. Kundert
                                     
For
   
13,837,489
   
   
13,988,375
   
   
22,367,250
   
 
Withhold
   
340,772
   
   
1,549,970
   
   
1,064,884
   
 
Total
   
14,178,261
   
   
15,538,345
   
   
23,432,134
   
 
William J. Schneider
                                     
For
   
   
1,352
   
   
4,917,319
   
   
8,740,600
 
Withhold
   
   
   
   
1,169,289
   
   
518,648
 
Total
   
   
1,352
   
   
6,086,608
   
   
9,259,248
 
Judith M. Stockdale
                                     
For
   
   
   
   
   
   
 
Withhold
   
   
   
   
   
   
 
Total
   
   
   
   
   
   
 
Carole E. Stone
                                     
For
   
   
   
   
   
   
 
Withhold
   
   
   
   
   
   
 
Total
   
   
   
   
   
   
 
Virginia L. Stringer
                                     
For
   
   
   
   
   
   
 
Withhold
   
   
   
   
   
   
 
Total
   
   
   
   
   
   
 
Terence J. Toth
                                     
For
   
13,842,839
   
   
13,996,504
   
   
22,368,715
   
 
Withhold
   
335,422
   
   
1,541,841
   
   
1,063,419
   
 
Total
   
14,178,261
   
   
15,538,345
   
   
23,432,134
   
 
 
28
 
Nuveen Investments

 
 

 

   
NKL
 
NKX
 
   

   
NKL
 
NKX
 
   
Common and
Preferred
shares voting
together
as a class
 
Preferred
shares voting
together
as a class
 
Common and
Preferred
shares voting
together
as a class
 
Preferred
shares voting
together
as a class
 
To approve the Agreement and
Plan of Reorganization.
                         
For
   
7,654,266
   
903
   
   
355
 
Against
   
386,245
   
   
   
 
Abstain
   
425,376
   
   
   
 
Broker Non-Votes
   
2,732,545
   
   
   
 
Total
   
11,198,432
   
903
   
   
355
 
                           
To approve the issuance of additional
common shares.
                         
For
   
   
   
2,617,715
   
 
Against
   
   
   
183,929
   
 
Abstain
   
   
   
105,422
   
 
Broker Non-Votes
   
   
   
888,385
   
 
Total
   
   
   
3,795,451
   
 
                           
To approve the elimination of the existing
fundamental investment policy related to
the Fund’s investment of at least 80% of
its assets in insured municipal securities.
                         
For
   
7,589,720
   
903
   
2,668,761
   
355
 
Against
   
472,008
   
   
163,686
   
 
Abstain
   
404,159
   
   
74,619
   
 
Broker Non-Votes
   
2,732,545
   
   
888,385
   
 
Total
   
11,198,432
   
903
   
3,795,451
   
355
 
                           
To approve a new fundamental
investment policy related to the
Fund’s investment of at least 80%
of its assets in municipal securities.
                         
For
   
7,625,923
   
903
   
2,677,823
   
355
 
Against
   
452,754
   
   
139,902
   
 
Abstain
   
387,210
   
   
89,341
   
 
Broker Non-Votes
   
2,732,545
   
   
888,385
   
 
Total
   
11,198,432
   
903
   
3,795,451
   
355
 
                           
To approve the elimination of the
fundamental policies relating to the
Fund’s ability to make loans.
                         
For
   
7,555,239
   
903
   
2,616,012
   
355
 
Against
   
475,339
   
   
203,575
   
 
Abstain
   
435,309
   
   
87,479
   
 
Broker Non-Votes
   
2,732,545
   
   
888,385
   
 
Total
   
11,198,432
   
903
   
3,795,451
   
355
 
                           
To approve the new fundamental
policy relating to the Fund’s ability
to make loans.
                         
For
   
7,554,772
   
903
   
2,615,750
   
355
 
Against
   
470,657
   
   
206,626
   
 
Abstain
   
440,458
   
   
84,690
   
 
Broker Non-Votes
   
2,732,545
   
   
888,385
   
 
Total
   
11,198,432
   
903
   
3,795,451
   
355
 
 
Nuveen Investments
 
29
 
 
 

 

   
Shareholder Meeting Report (continued)
NKL
   
NKX
   
     

   
NKL
 
NKX
 
   
Common and
Preferred
shares voting
together
as a class
 
Preferred
shares voting
together
as a class
 
Common and
Preferred
shares voting
together
as a class
 
Preferred
shares voting
together
as a class
 
Approval of the Board Members
was reached as follows:
                         
John P. Amboian
                         
For
   
12,468,112
   
   
4,566,281
   
 
Withhold
   
188,664
   
   
65,693
   
 
Total
   
12,656,776
   
   
4,631,974
   
 
Robert P. Bremner
                         
For
   
   
   
   
 
Withhold
   
   
   
   
 
Total
   
   
   
   
 
Jack B. Evans
                         
For
   
   
   
   
 
Withhold
   
   
   
   
 
Total
   
   
   
   
 
William C. Hunter
                         
For
   
   
903
   
   
177
 
Withhold
   
   
   
   
178
 
Total
   
   
903
   
   
355
 
David J. Kundert
                         
For
   
12,471,795
   
   
4,567,081
   
 
Withhold
   
184,981
   
   
64,893
   
 
Total
   
12,656,776
   
   
4,631,974
   
 
William J. Schneider
                         
For
   
   
903
   
   
177
 
Withhold
   
   
   
   
178
 
Total
   
   
903
   
   
355
 
Judith M. Stockdale
                         
For
   
   
   
   
 
Withhold
   
   
   
   
 
Total
   
   
   
   
 
Carole E. Stone
                         
For
   
   
   
   
 
Withhold
   
   
   
   
 
Total
   
   
   
   
 
Virginia L. Stringer
                         
For
   
   
   
   
 
Withhold
   
   
   
   
 
Total
   
   
   
   
 
Terence J. Toth
                         
For
   
12,474,211
   
   
4,566,281
   
 
Withhold
   
182,565
   
   
65,693
   
 
Total
   
12,656,776
   
   
4,631,974
   
 
 
30
 
Nuveen Investments

 
 

 
 
Report of Independent
Registered Public Accounting Firm
 
The Board of Directors/Trustees and Shareholders
Nuveen Insured California Premium Income Municipal Fund, Inc.
Nuveen Insured California Premium Income Municipal Fund 2, Inc.
Nuveen California Premium Income Municipal Fund
Nuveen California Dividend Advantage Municipal Fund
Nuveen California Dividend Advantage Municipal Fund 2
Nuveen California Dividend Advantage Municipal Fund 3
Nuveen Insured California Dividend Advantage Municipal Fund
Nuveen Insured California Tax-Free Advantage Municipal Fund
 
We have audited the accompanying statements of assets and liabilities, including the portfolios of investments, of Nuveen Insured California Premium Income Municipal Fund, Inc., Nuveen Insured California Premium Income Municipal Fund 2, Inc., Nuveen California Premium Income Municipal Fund, Nuveen California Dividend Advantage Municipal Fund, Nuveen California Dividend Advantage Municipal Fund 2, Nuveen California Dividend Advantage Municipal Fund 3, Nuveen Insured California Dividend Advantage Municipal Fund, and Nuveen Insured California Tax-Free Advantage Municipal Fund (the “Funds”) as of February 29, 2012, and the related statements of operations and cash flows for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the periods indicated therein. These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
 
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the Funds’ internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of February 29, 2012, by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers were not received. We believe that our audits provide a reasonable basis for our opinion.
 
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial positions of Nuveen Insured California Premium Income Municipal Fund, Inc., Nuveen Insured California Premium Income Municipal Fund 2, Inc., Nuveen California Premium Income Municipal Fund, Nuveen California Dividend Advantage Municipal Fund, Nuveen California Dividend Advantage Municipal Fund 2, Nuveen California Dividend Advantage Municipal Fund 3, Nuveen Insured California Dividend Advantage Municipal Fund, and Nuveen Insured California Tax-Free Advantage Municipal Fund at February 29, 2012, and the results of their operations and their cash flows for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the periods indicated therein, in conformity with U.S. generally accepted accounting principles.
 
 
Chicago, Illinois
April 25, 2012
 
Nuveen Investments
 
31
 
 
 

 
 
   
Nuveen Insured California Premium Income Municipal Fund, Inc.
NPC
 
Portfolio of Investments
February 29, 2012
 
 
Principal
     
Optional Call
       
 
Amount (000)
 
Description (1)
 
Provisions (2)
Ratings (3)
 
Value
 
     
Education and Civic Organizations – 3.4% (2.5% of Total Investments)
           
$
750
 
California Educational Facilities Authority, Student Loan Revenue Bonds, Cal Loan Program, Series 2001A, 5.400%, 3/01/21 – NPFG Insured (Alternative Minimum Tax)
 
9/12 at 100.00
Baa2
$
750,870
 
 
1,500
 
California State University, Systemwide Revenue Bonds, Series 2005A, 5.000%, 11/01/25 – AMBAC Insured
 
5/15 at 100.00
Aa2
 
1,671,855
 
 
1,000
 
California State University, Systemwide Revenue Bonds, Series 2005C, 5.000%, 11/01/27 – NPFG Insured
 
11/15 at 100.00
Aa2
 
1,067,500
 
 
3,250
 
Total Education and Civic Organizations
       
3,490,225
 
     
Health Care – 5.3% (4.0% of Total Investments)
           
 
2,800
 
California Statewide Community Development Authority, Revenue Bonds, St. Joseph Health System, Series 2007A, 5.750%, 7/01/47 – FGIC Insured
 
7/18 at 100.00
AA–
 
3,006,612
 
 
724
 
California Statewide Communities Development Authority, Revenue Bonds, St. Joseph Health System, Trust 2554, 18.382%, 7/01/47 – AGM Insured (IF)
 
7/18 at 100.00
AA–
 
886,234
 
 
1,480
 
Santa Clara County Financing Authority, California, Insured Revenue Bonds, El Camino Hospital, Series 2007A, 5.750%, 2/01/41 – AMBAC Insured
 
8/17 at 100.00
A+
 
1,579,441
 
 
5,004
 
Total Health Care
       
5,472,287
 
     
Housing/Single Family – 0.1% (0.1% of Total Investments)
           
 
95
 
California Housing Finance Agency, Home Mortgage Revenue Bonds, Series 2006H, 5.750%, 8/01/30 – FGIC Insured (Alternative Minimum Tax)
 
2/16 at 100.00
BBB
 
95,065
 
     
Long-Term Care – 1.4% (1.1% of Total Investments)
           
 
1,250
 
California Health Facilities Financing Authority, Insured Revenue Bonds, Community Program for Persons with Developmental Disabilities, Series 2011A, 6.250%, 2/01/26
 
No Opt. Call
A–
 
1,459,563
 
     
Tax Obligation/General – 28.4% (21.1% of Total Investments)
           
     
Bonita Unified School District, San Diego County, California, General Obligation Bonds, Series 2004A:
           
 
1,890
 
5.250%, 8/01/23 – NPFG Insured
 
8/14 at 100.00
AA–
 
2,087,978
 
 
1,250
 
5.250%, 8/01/25 – NPFG Insured
 
8/14 at 100.00
AA–
 
1,369,388
 
     
El Segundo Unified School District, Los Angeles County, California, General Obligation Bonds, Series 2004:
           
 
2,580
 
5.250%, 9/01/21 – FGIC Insured
 
9/14 at 100.00
AA–
 
2,846,927
 
 
1,775
 
5.250%, 9/01/22 – FGIC Insured
 
9/14 at 100.00
AA–
 
1,958,642
 
 
1,130
 
Fontana Unified School District, San Bernardino County, California, General Obligation Bonds, Trust 2668, 9.515%, 2/01/16 – AGM Insured (IF)
 
No Opt. Call
AA–
 
1,415,845
 
 
1,225
 
Fresno Unified School District, Fresno County, California, General Obligation Refunding Bonds, Series 1998A, 6.550%, 8/01/20 – NPFG Insured
 
2/13 at 103.00
Aa3
 
1,320,881
 
 
5,000
 
Grossmont Healthcare District, California, General Obligation Bonds, Series 2007A, 5.000%, 7/15/37 – AMBAC Insured
 
7/17 at 100.00
Aa2
 
5,270,500
 
 
1,180
 
Jurupa Unified School District, Riverside County, California, General Obligation Bonds, Series 2004, 5.000%, 8/01/21 – FGIC Insured
 
8/13 at 100.00
A+
 
1,242,139
 
 
3,000
 
Pomona Unified School District, Los Angeles County, California, General Obligation Refunding Bonds, Series 1997A, 6.500%, 8/01/19 – NPFG Insured
 
8/12 at 102.00
A
 
3,124,560
 
 
160
 
Roseville Joint Union High School District, Placer County, California, General Obligation Bonds, Series 2006B, 5.000%, 8/01/27 – FGIC Insured
 
8/15 at 100.00
AA–
 
176,867
 
 
3,000
 
Sacramento City Unified School District, Sacramento County, California, General Obligation Bonds, Series 2005, 5.000%, 7/01/27 – NPFG Insured
 
7/15 at 100.00
Aa3
 
3,300,450
 
 
3,000
 
San Jacinto Unified School District, Riverside County, California, General Obligation Bonds, Series 2007, 5.250%, 8/01/32 – AGM Insured
 
No Opt. Call
AA–
 
3,259,470
 
 
3,770
 
Stockton Unified School District, San Joaquin County, California, General Obligation Bonds, Election 2008 Series 2011D, 0.000%, 8/01/50 – AGM Insured
 
8/37 at 100.00
AA–
 
1,748,451
 
 
28,960
 
Total Tax Obligation/General
       
29,122,098
 
 
32
 
Nuveen Investments

 
 

 
 
 
Principal
     
Optional Call
       
 
Amount (000)
 
Description (1)
 
Provisions (2)
Ratings (3)
 
Value
 
     
Tax Obligation/Limited – 48.8% (36.2% of Total Investments)
           
$
1,000
 
Brea and Olinda Unified School District, Orange County, California, Certificates of Participation Refunding, Series 2002A, 5.125%, 8/01/26 – AGM Insured
 
8/12 at 100.00
AA–
$
1,013,180
 
     
California Infrastructure and Economic Development Bank, Revenue Bonds, North County Center for Self-Sufficiency Corporation, Series 2004:
           
 
1,215
 
5.000%, 12/01/19 – AMBAC Insured
 
12/13 at 100.00
AA
 
1,307,146
 
 
1,615
 
5.000%, 12/01/21 – AMBAC Insured
 
12/13 at 100.00
AA
 
1,735,996
 
 
195
 
Capistrano Unified School District, Orange County, California, Special Tax Bonds, Community Facilities District, Series 2005, 5.000%, 9/01/24 – FGIC Insured
 
9/15 at 100.00
BBB
 
200,164
 
 
595
 
Chino Redevelopment Agency, California, Merged Chino Redevelopment Project Area Tax Allocation Bonds, Series 2006, 5.000%, 9/01/38 – AMBAC Insured
 
9/16 at 101.00
A–
 
575,079
 
 
3,190
 
Chula Vista Public Financing Authority, California, Pooled Community Facility District Assessment Revenue Bonds, Series 2005A, 4.500%, 9/01/27 – NPFG Insured
 
9/15 at 100.00
BBB
 
3,039,177
 
 
1,900
 
Corona-Norco Unified School District, Riverside County, California, Special Tax Bonds, Community Facilities District 98-1, Series 2002, 5.100%, 9/01/25 – AMBAC Insured
 
9/12 at 100.00
N/R
 
1,902,147
 
 
315
 
Dinuba Redevelopment Agency, California, Tax Allocation Bonds, Merged City of Dinuba Redevelopment Project and Dinuba Redevelopment Project 2, As Amended, Refunding Series 2001, 5.000%, 9/01/31 – NPFG Insured
 
9/12 at 101.00
A–
 
316,288
 
 
5,000
 
El Monte, California, Senior Lien Certificates of Participation, Department of Public Services Facility Phase II, Series 2001, 5.250%, 1/01/34 – AMBAC Insured
 
7/12 at 100.00
A2
 
5,001,300
 
 
3,180
 
Golden State Tobacco Securitization Corporation, California, Enhanced Tobacco Settlement Asset-Backed Revenue Bonds, Tender Option Bonds Trust 4686, 8.957%, 6/01/45 – AGC Insured (IF) (4)
 
6/15 at 100.00
AA–
 
3,224,138
 
 
700
 
Hesperia Public Financing Authority, California, Redevelopment and Housing Projects Tax Allocation Bonds, Series 2007A, 5.000%, 9/01/37 – SYNCORA GTY Insured
 
9/17 at 100.00
Ba1
 
527,226
 
 
435
 
Indian Wells Redevelopment Agency, California, Tax Allocation Bonds, Consolidated Whitewater Project Area, Series 2003A, 5.000%, 9/01/20 – AMBAC Insured
 
9/13 at 100.00
A3
 
441,534
 
 
385
 
Inglewood Redevelopment Agency, California, Tax Allocation Bonds, Merged Redevelopment Project, Subordinate Lien Series 2007A-1, 5.000%, 5/01/24 – AMBAC Insured
 
5/17 at 100.00
BBB+
 
383,583
 
 
345
 
Los Angeles Community Redevelopment Agency, California, Lease Revenue Bonds, Manchester Social Services Project, Series 2005, 5.000%, 9/01/37 – AMBAC Insured
 
9/15 at 100.00
A1
 
349,140
 
 
895
 
Los Angeles Community Redevelopment Agency, California, Tax Allocation Bonds, Bunker Hill Project, Series 2004A, 5.000%, 12/01/20 – AGM Insured
 
12/14 at 100.00
AA–
 
983,820
 
 
1,500
 
Los Angeles, California, Municipal Improvement Corporation, Lease Revenue Bonds, Police Headquarters, Series 2006A, 4.750%, 1/01/31 – FGIC Insured
 
1/17 at 100.00
A+
 
1,553,310
 
 
3,150
 
Moreno Valley Community Redevelopment Agency, California, Tax Allocation Bonds, Series 2007A, 5.000%, 8/01/38 – AMBAC Insured
 
8/17 at 100.00
A–
 
3,079,850
 
 
7,000
 
Rancho Cucamonga Redevelopment Agency, California, Housing Set-Aside Tax Allocation Bonds, Series 2007A, 5.000%, 9/01/34 – NPFG Insured
 
9/17 at 100.00
A+
 
6,999,999
 
 
165
 
Rialto Redevelopment Agency, California, Tax Allocation Bonds, Merged Project Area, Series 2005A, 5.000%, 9/01/35 – SYNCORA GTY Insured
 
9/15 at 100.00
A–
 
162,867
 
 
205
 
Roseville, California, Certificates of Participation, Public Facilities, Series 2003A, 5.000%, 8/01/25 – AMBAC Insured
 
8/13 at 100.00
AA–
 
209,348
 
 
5,150
 
San Jacinto Unified School District, Riverside County, California, Certificates of Participation, Series 2010, 5.375%, 9/01/40 – AGC Insured
 
9/20 at 100.00
AA–
 
5,489,899
 
 
1,500
 
San Jose Redevelopment Agency, California, Tax Allocation Bonds, Merged Project Area, Series 2005A, 5.000%, 8/01/28 – NPFG Insured
 
8/15 at 100.00
BBB
 
1,459,005
 
 
3,565
 
Sweetwater Union High School District Public Financing Authority, California, Special Tax Revenue Bonds, Series 2005A, 5.000%, 9/01/25 – AGM Insured
 
9/15 at 100.00
AA–
 
3,745,033
 
 
3,250
 
Tustin Community Redevelopment Agency, California, Tax Allocation Housing Bonds Series 2010, 5.250%, 9/01/39 – AGM Insured
 
9/20 at 100.00
AA–
 
3,527,030
 
 
2,805
 
Yucaipa-Calimesa Joint Unified School District, San Bernardino County, California, General Obligation Refunding Bonds, Series 2001A, 5.000%, 10/01/31 – NPFG Insured
 
4/12 at 100.00
A2
 
2,805,673
 
 
49,255
 
Total Tax Obligation/Limited
       
50,031,932
 
 
Nuveen Investments
 
33

 
 

 
 
   
Nuveen Insured California Premium Income Municipal Fund, Inc. (continued)
NPC
 
Portfolio of Investments
February 29, 2012
 
 
Principal
     
Optional Call
       
 
Amount (000)
 
Description (1)
 
Provisions (2)
Ratings (3)
 
Value
 
     
Transportation – 2.5% (1.8% of Total Investments)
           
$
2,400
 
San Diego Unified Port District, California, Revenue Bonds, Series 2004B, 5.000%, 9/01/29 – NPFG Insured
 
9/14 at 100.00
A+
$
2,502,336
 
     
U.S. Guaranteed – 24.8% (18.4% of Total Investments) (5)
           
 
6,000
 
Huntington Park Redevelopment Agency, California, Single Family Residential Mortgage Revenue Refunding Bonds, Series 1986A, 8.000%, 12/01/19 (ETM)
 
No Opt. Call
Aaa
 
9,048,959
 
 
4,135
 
Palmdale Community Redevelopment Agency, California, Single Family Restructured Mortgage Revenue Bonds, Series 1986A, 8.000%, 3/01/16 (ETM)
 
No Opt. Call
Aaa
 
5,328,650
 
 
6,220
 
Riverside County, California, GNMA Mortgage-Backed Securities Program Single Family Mortgage Revenue Bonds, Series 1987A, 9.000%, 5/01/21 (Alternative Minimum Tax) (ETM)
 
No Opt. Call
Aaa
 
9,580,727
 
 
1,345
 
West Basin Municipal Water District, California, Revenue Certificates of Participation, Series 2003A, 5.000%, 8/01/20 (Pre-refunded 8/01/13) – NPFG Insured
 
8/13 at 100.00
Aa2 (5)
 
1,435,747
 
 
17,700
 
Total U.S. Guaranteed
       
25,394,083
 
     
Utilities – 0.3% (0.2% of Total Investments)
           
 
345
 
Merced Irrigation District, California, Electric System Revenue Bonds, Series 2005, 5.125%, 9/01/31 – SYNCORA GTY Insured
 
9/15 at 100.00
N/R
 
343,106
 
     
Water and Sewer – 19.7% (14.6% of Total Investments)
           
 
2,200
 
Atwater Public Financing Authority, California, Wastewater Revenue Bonds, Tender Option Bond Trust 3145, 18.131%, 5/01/40 – AGM Insured (IF)
 
5/19 at 100.00
AA–
 
2,854,104
 
 
5,255
 
El Dorado Irrigation District, California, Water and Sewer Certificates of Participation, Series 2003A, 5.000%, 3/01/20 – FGIC Insured
 
3/13 at 100.00
A1
 
5,413,385
 
 
1,230
 
El Dorado Irrigation District, California, Water and Sewer Certificates of Participation, Series 2004A, 5.000%, 3/01/21 – FGIC Insured
 
3/14 at 100.00
A1
 
1,300,061
 
 
235
 
Healdsburg Public Financing Authority, California, Wastewater Revenue Bonds, Series 2006, 5.000%, 4/01/36 – NPFG Insured
 
4/16 at 100.00
AA–
 
244,449
 
 
5,000
 
Indio Water Authority, California, Water Revenue Bonds, Series 2006, 5.000%, 4/01/31 – AMBAC Insured
 
4/16 at 100.00
A+
 
5,245,350
 
 
3,230
 
Los Angeles County Sanitation Districts Financing Authority, California, Capital Projects Revenue Bonds, District 14, Series 2005, 5.000%, 10/01/34 – FGIC Insured
 
10/15 at 100.00
A+
 
3,427,127
 
 
220
 
Marina Coast Water District, California, Enterprise Certificate of Participation, Series 2006, 5.000%, 6/01/31 – NPFG Insured
 
6/16 at 100.00
AA–
 
230,580
 
 
1,500
 
Placerville Public Financing Authority, California, Wastewater System Refinancing and Improvement Project Revenue Bonds, Series 2006, 5.000%, 9/01/34 – SYNCORA GTY Insured
 
9/16 at 100.00
N/R
 
1,422,375
 
 
18,870
 
Total Water and Sewer
       
20,137,431
 
$
127,129
 
Total Investments (cost $126,573,381) – 134.7%
       
138,048,126
 
     
Variable Rate Demand Preferred Shares, at Liquidation Value – (41.7)% (6)
       
(42,700,000
     
Other Assets Less Liabilities – 7.0%
       
7,132,797
 
     
Net Assets Applicable to Common Shares – 100%
     
$
102,480,923
 
 
   
The Fund intends to invest at least 80% of its net assets in municipal securities that are covered by insurance guaranteeing the timely payment of principal and interest. See Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies, Insurance for more information.
(1)
 
All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted.
(2)
 
Optional Call Provisions (not covered by the report of independent registered public accounting firm): 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 (not covered by the report of independent registered public accounting firm): Using the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investors Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies.
(4)
 
Investment, or portion of investment, has been pledged to collaterize the net payment obligations for investments in inverse floating rate transactions.
(5)
 
Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities, which ensure the timely payment of principal and interest. Certain bonds backed by U.S. Government or agency securities are regarded as having an implied rating equal to the rating of such securities.
(6)
 
Variable Rate Demand Preferred Shares, at Liquidation Value as a percentage of Total Investments is 30.9%.
N/R
 
Not rated.
(ETM)
 
Escrowed to maturity.
(IF)
 
Inverse floating rate investment.
 
See accompanying notes to financial statements.
 
34
 
Nuveen Investments

 
 

 
 
   
Nuveen Insured California Premium Income Municipal Fund 2, Inc.
NCL
 
Portfolio of Investments
February 29, 2012
 
 
Principal
     
Optional Call
       
 
Amount (000)
 
Description (1)
 
Provisions (2)
Ratings (3)
 
Value
 
     
Consumer Staples – 2.7% (1.9% of Total Investments)
           
$
7,500
 
Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed Bonds, Series 2007A-1, 5.125%, 6/01/47
 
6/17 at 100.00
B–
$
5,192,400
 
     
Education and Civic Organizations – 4.5% (3.1% of Total Investments)
           
 
750
 
California Educational Facilities Authority, Student Loan Revenue Bonds, Cal Loan Program, Series 2001A, 5.400%, 3/01/21 – NPFG Insured (Alternative Minimum Tax)
 
9/12 at 100.00
Baa2
 
750,870
 
 
1,500
 
California State University, Systemwide Revenue Bonds, Series 2005A, 5.000%, 11/01/25 – AMBAC Insured
 
5/15 at 100.00
Aa2
 
1,671,855
 
 
6,000
 
University of California, Revenue Bonds, Multi-Purpose Project Series 2003A, 5.000%, 5/15/27 – AMBAC Insured (UB)
 
5/13 at 100.00
Aa1
 
6,294,480
 
 
8,250
 
Total Education and Civic Organizations
       
8,717,205
 
     
Health Care – 4.8% (3.4% of Total Investments)
           
 
1,410
 
California Statewide Communities Development Authority, Revenue Bonds, St. Joseph Health System, Trust 2554, 18.382%, 7/01/47 – AGM Insured (IF)
 
7/18 at 100.00
AA–
 
1,725,953
 
 
4,690
 
Santa Clara County Financing Authority, California, Insured Revenue Bonds, El Camino Hospital, Series 2007A, 5.750%, 2/01/41 – AMBAC Insured
 
8/17 at 100.00
A+
 
5,005,121
 
 
2,000
 
The Regents of the University of California, Medical Center Pooled Revenue Bonds, Series 2007A, 4.500%, 5/15/37 – NPFG Insured
 
5/15 at 101.00
Aa2
 
2,017,060
 
 
650
 
University of California, Hospital Revenue Bonds, UCLA Medical Center, Series 2004A, 5.500%, 5/15/18 – AMBAC Insured
 
5/12 at 101.00
N/R
 
660,485
 
 
8,750
 
Total Health Care
       
9,408,619
 
     
Housing/Single Family – 0.6% (0.4% of Total Investments)
           
 
190
 
California Housing Finance Agency, Home Mortgage Revenue Bonds, Series 2006H, 5.750%, 8/01/30 – FGIC Insured (Alternative Minimum Tax)
 
2/16 at 100.00
BBB
 
190,129
 
 
1,060
 
California Housing Finance Agency, Home Mortgage Revenue Bonds, Series 2006K, 5.500%, 2/01/42 – AMBAC Insured (Alternative Minimum Tax)
 
2/16 at 100.00
N/R
 
1,070,240
 
 
1,250
 
Total Housing/Single Family
       
1,260,369
 
     
Long-Term Care – 1.4% (1.0% of Total Investments)
           
 
1,575
 
California Health Facilities Financing Authority, Insured Revenue Bonds, California-Nevada Methodist Homes, Series 2006, 5.000%, 7/01/36
 
7/16 at 100.00
A–
 
1,596,641
 
 
1,000
 
California Health Facilities Financing Authority, Insured Revenue Bonds, Community Program for Persons with Developmental Disabilities, Series 2011A, 6.250%, 2/01/26
 
No Opt. Call
A–
 
1,167,650
 
 
2,575
 
Total Long-Term Care
       
2,764,291
 
     
Tax Obligation/General – 30.8% (21.4% of Total Investments)
           
 
1,425
 
Bassett Unified School District, Los Angeles County, California, General Obligation Bonds, Series 2006B, 5.250%, 8/01/30 – FGIC Insured
 
8/16 at 100.00
A–
 
1,511,013
 
 
6,000
 
California State, General Obligation Bonds, Various Purpose Series 2010, 6.000%, 3/01/33
 
3/20 at 100.00
A1
 
7,194,599
 
 
1,000
 
California State, General Obligation Bonds, Various Purpose Series 2011, 5.250%, 9/01/25
 
No Opt. Call
A1
 
1,191,080
 
 
4,200
 
Coast Community College District, Orange County, California, General Obligation Bonds, Series 2006C, 0.000%, 8/01/31 – AGM Insured
 
8/18 at 100.00
Aa1
 
4,001,508
 
 
2,500
 
Corona-Norco Unified School District, Riverside County, California, General Obligation Bonds, Election 2006 Series 2009B, 5.375%, 2/01/34 – AGC Insured
 
8/18 at 100.00
Aa2
 
2,792,575
 
     
East Side Union High School District, Santa Clara County, California, General Obligation Bonds, 2008 Election Series 2010B:
           
 
3,490
 
5.000%, 8/01/27 – AGC Insured
 
8/19 at 100.00
AA–
 
3,849,400
 
 
3,545
 
5.000%, 8/01/28 – AGC Insured
 
8/19 at 100.00
AA–
 
3,891,063
 
 
3,110
 
5.000%, 8/01/29 – AGC Insured
 
8/19 at 100.00
AA–
 
3,394,472
 
 
2,210
 
Fontana Unified School District, San Bernardino County, California, General Obligation Bonds, Trust 2668, 9.515%, 2/01/16 – AGM Insured (IF)
 
No Opt. Call
AA–
 
2,769,042
 
 
Nuveen Investments
 
35

 
 

 
 
   
Nuveen Insured California Premium Income Municipal Fund 2, Inc. (continued)
NCL
 
Portfolio of Investments
February 29, 2012

 
Principal
     
Optional Call
       
 
Amount (000)
 
Description (1)
 
Provisions (2)
Ratings (3)
 
Value
 
     
Tax Obligation/General (continued)
           
$
1,255
 
Los Angeles Community College District, Los Angeles County, California, General Obligation Bonds, Series 2005A, 5.000%, 8/01/24 – AGM Insured
 
8/15 at 100.00
Aa1
$
1,397,468
 
 
4,000
 
Los Angeles Unified School District, Los Angeles County, California, General Obligation Bonds, Series 2007A, 4.500%, 7/01/24 – AGM Insured
 
7/17 at 100.00
Aa2
 
4,441,320
 
     
Los Rios Community College District, Sacramento, El Dorado and Yolo Counties, California, General Obligation Bonds, Series 2002C:
           
 
2,110
 
5.000%, 8/01/21 – AGM Insured (UB)
 
8/14 at 102.00
Aa2
 
2,346,700
 
 
3,250
 
5.000%, 8/01/22 – AGM Insured (UB)
 
8/14 at 102.00
Aa2
 
3,627,098
 
 
3,395
 
5.000%, 8/01/23 – AGM Insured (UB)
 
8/14 at 102.00
Aa2
 
3,782,811
 
 
1,270
 
Merced City School District, Merced County, California, General Obligation Bonds, Series 2004, 5.000%, 8/01/22 – FGIC Insured
 
8/13 at 100.00
A
 
1,336,878
 
 
305
 
Roseville Joint Union High School District, Placer County, California, General Obligation Bonds, Series 2006B, 5.000%, 8/01/27 – FGIC Insured
 
8/15 at 100.00
AA–
 
337,153
 
 
2,500
 
Sacramento City Unified School District, Sacramento County, California, General Obligation Bonds, Series 2005, 5.000%, 7/01/27 – NPFG Insured
 
7/15 at 100.00
Aa3
 
2,750,375
 
 
1,125
 
San Diego Unified School District, San Diego County, California, General Obligation Bonds, Election of 1998, Series 1999A, 0.000%, 7/01/21 – FGIC Insured
 
No Opt. Call
Aa2
 
805,084
 
 
2,000
 
San Francisco Community College District, California, General Obligation Bonds, Series 2002A, 5.000%, 6/15/26 – FGIC Insured
 
6/12 at 100.00
Aa2
 
2,020,840
 
 
2,000
 
San Jacinto Unified School District, Riverside County, California, General Obligation Bonds, Series 2007, 5.250%, 8/01/32 – AGM Insured
 
No Opt. Call
AA–
 
2,172,980
 
 
3,770
 
Stockton Unified School District, San Joaquin County, California, General Obligation Bonds, Election 2008 Series 2011D, 0.000%, 8/01/50 – AGM Insured
 
8/37 at 100.00
AA–
 
1,748,451
 
 
2,445
 
Washington Unified School District, Yolo County, California, General Obligation Bonds, Series 2004A, 5.000%, 8/01/21 – FGIC Insured
 
8/13 at 100.00
A+
 
2,566,101
 
 
56,905
 
Total Tax Obligation/General
       
59,928,011
 
     
Tax Obligation/Limited – 63.7% (44.3% of Total Investments)
           
     
Anaheim Public Finance Authority, California, Subordinate Lease Revenue Bonds, Public Improvement Project, Series 1997C:
           
 
5,130
 
0.000%, 9/01/18 – AGM Insured
 
No Opt. Call
AA–
 
4,111,233
 
 
8,000
 
0.000%, 9/01/21 – AGM Insured
 
No Opt. Call
AA–
 
5,313,200
 
 
2,235
 
Antioch Public Financing Authority, California, Lease Revenue Refunding Bonds, Municipal Facilities Project, Refunding Series 2002A, 5.500%, 1/01/32 – NPFG Insured
 
7/12 at 100.00
A
 
2,236,721
 
     
California Infrastructure and Economic Development Bank, Revenue Bonds, North County Center for Self-Sufficiency Corporation, Series 2004:
           
 
1,535
 
5.000%, 12/01/20 – AMBAC Insured
 
12/13 at 100.00
AA
 
1,650,002
 
 
1,780
 
5.000%, 12/01/23 – AMBAC Insured
 
12/13 at 100.00
AA
 
1,911,738
 
 
3,725
 
California State Public Works Board, Lease Revenue Bonds, Department of Corrections & Rehabilitation, Series 2005J, 5.000%, 1/01/17 – AMBAC Insured
 
1/16 at 100.00
A2
 
4,174,719
 
 
4,000
 
California State Public Works Board, Lease Revenue Bonds, Various Capital Projects, Series 2009G-1, 5.750%, 10/01/30
 
10/19 at 100.00
A2
 
4,542,360
 
 
380
 
Capistrano Unified School District, Orange County, California, Special Tax Bonds, Community Facilities District, Series 2005, 5.000%, 9/01/24 – FGIC Insured
 
9/15 at 100.00
BBB
 
390,062
 
 
7,000
 
Chula Vista Public Financing Authority, California, Pooled Community Facility District Assessment Revenue Bonds, Series 2005A, 4.500%, 9/01/27 – NPFG Insured
 
9/15 at 100.00
BBB
 
6,669,040
 
 
1,430
 
Cloverdale Community Development Agency, California, Tax Allocation Refunding Bonds, Cloverdale Redevelopment Project Series 2006, 5.000%, 8/01/36 – AMBAC Insured
 
No Opt. Call
A–
 
1,407,149
 
 
575
 
Dinuba Redevelopment Agency, California, Tax Allocation Bonds, Merged City of Dinuba Redevelopment Project and Dinuba Redevelopment Project 2, As Amended, Refunding Series 2001, 5.000%, 9/01/31 – NPFG Insured
 
9/12 at 101.00
A–
 
577,352
 
 
4,810
 
El Monte, California, Senior Lien Certificates of Participation, Department of Public Services Facility Phase II, Series 2001, 5.000%, 1/01/21 – AMBAC Insured
 
7/12 at 100.00
A2
 
4,816,638
 
 
36
 
Nuveen Investments

 
 

 
 
 
Principal
     
Optional Call
       
 
Amount (000)
 
Description (1)
 
Provisions (2)
Ratings (3)
 
Value
 
     
Tax Obligation/Limited (continued)
           
$
8,280
 
Fontana Public Financing Authority, California, Tax Allocation Revenue Bonds, North Fontana Redevelopment Project, Series 2005A, 5.000%, 10/01/32 – AMBAC Insured
 
10/15 at 100.00
A
$
8,425,062
 
     
Golden State Tobacco Securitization Corporation, California, Enhanced Tobacco Settlement Asset-Backed Revenue Bonds, Series 2005A:
           
 
7,250
 
5.000%, 6/01/35 – FGIC Insured
 
6/15 at 100.00
AA–
 
7,310,103
 
 
7,500
 
5.000%, 6/01/45 – AGC Insured
 
6/15 at 100.00
AA–
 
7,552,050
 
 
6,215
 
Golden State Tobacco Securitization Corporation, California, Enhanced Tobacco Settlement Asset-Backed Revenue Bonds, Tender Option Bonds Trust 4686, 8.957%, 6/01/45 – AGC Insured (IF) (4)
 
6/15 at 100.00
AA–
 
6,301,264
 
 
2,000
 
Golden State Tobacco Securitization Corporation, California, Enhanced Tobacco Settlement Revenue Bonds, Tender Option Bonds Trust 2040, 10.375%, 6/01/45 – FGIC Insured (IF)
 
6/15 at 100.00
A2
 
2,020,100
 
 
875
 
Hesperia Public Financing Authority, California, Redevelopment and Housing Projects Tax Allocation Bonds, Series 2007A, 5.000%, 9/01/37 – SYNCORA GTY Insured
 
9/17 at 100.00
Ba1
 
659,033
 
 
1,700
 
Hesperia Unified School District, San Bernardino County, California, Certificates of Participation, Capital Improvement, Series 2007, 5.000%, 2/01/41 – AMBAC Insured
 
2/17 at 100.00
A–
 
1,683,000
 
 
710
 
Inglewood Redevelopment Agency, California, Tax Allocation Bonds, Merged Redevelopment Project, Subordinate Lien Series 2007A-1, 5.000%, 5/01/25 – AMBAC Insured
 
5/17 at 100.00
BBB+
 
701,856
 
 
5,000
 
La Quinta Redevelopment Agency, California, Tax Allocation Refunding Bonds, Redevelopment Project Area 1, Series 1998, 5.200%, 9/01/28 – AMBAC Insured
 
9/12 at 100.00
A+
 
5,030,600
 
 
2,185
 
Los Angeles Community Redevelopment Agency, California, Lease Revenue Bonds, Manchester Social Services Project, Series 2005, 5.000%, 9/01/37 – AMBAC Insured
 
9/15 at 100.00
A1
 
2,211,220
 
 
1,000
 
Los Angeles Community Redevelopment Agency, California, Tax Allocation Bonds, Bunker Hill Project, Series 2004A, 5.000%, 12/01/20 – AGM Insured
 
12/14 at 100.00
AA–
 
1,099,240
 
 
4,000
 
Los Angeles, California, Certificates of Participation, Municipal Improvement Corporation, Series 2003AW, 5.000%, 6/01/33 – AMBAC Insured
 
6/13 at 100.00
A+
 
4,072,600
 
 
3,000
 
Los Angeles, California, Municipal Improvement Corporation, Lease Revenue Bonds, Police Headquarters, Series 2006A, 4.750%, 1/01/31 – FGIC Insured
 
1/17 at 100.00
A+
 
3,106,620
 
 
6,120
 
Moreno Valley Community Redevelopment Agency, California, Tax Allocation Bonds, Series 2007A, 5.000%, 8/01/38 – AMBAC Insured
 
8/17 at 100.00
A–
 
5,983,708
 
 
2,810
 
Oakland Joint Powers Financing Authority, California, Lease Revenue Bonds, Administration Building Projects, Series 2008B, 5.000%, 8/01/21 – AGC Insured
 
8/18 at 100.00
AA–
 
3,098,728
 
 
1,000
 
Palm Springs Financing Authority, California, Lease Revenue Bonds, Convention Center Project, Refunding Series 2004A, 5.500%, 11/01/35 – NPFG Insured
 
11/14 at 102.00
A
 
1,047,390
 
 
4,140
 
Plumas County, California, Certificates of Participation, Capital Improvement Program, Series 2003A, 5.000%, 6/01/28 – AMBAC Insured
 
6/13 at 101.00
A
 
4,216,093
 
 
390
 
Poway Redevelopment Agency, California, Tax Allocation Refunding Bonds, Paguay Redevelopment Project, Series 2000, 5.750%, 6/15/33 – NPFG Insured
 
12/12 at 100.00
BBB
 
392,172
 
 
325
 
Rialto Redevelopment Agency, California, Tax Allocation Bonds, Merged Project Area, Series 2005A, 5.000%, 9/01/35 – SYNCORA GTY Insured
 
9/15 at 100.00
A–
 
320,798
 
 
1,000
 
Rocklin Unified School District, Placer County, California, Special Tax Bonds, Community Facilities District 1, Series 2004, 5.000%, 9/01/25 – NPFG Insured
 
9/13 at 100.00
A–
 
1,009,260
 
 
2,500
 
Roseville Financing Authority, California, Special Tax Revenue Bonds, Series 2007A, 5.000%, 9/01/33 – AMBAC Insured
 
9/17 at 100.00
N/R
 
2,388,975
 
 
405
 
Roseville, California, Certificates of Participation, Public Facilities, Series 2003A, 5.000%, 8/01/25 – AMBAC Insured
 
8/13 at 100.00
AA–
 
413,590
 
 
4,295
 
San Bernardino Joint Powers Financing Authority, California, Certificates of Participation Refunding, Police Station Financing Project, Series 1999, 5.500%, 9/01/20 – NPFG Insured
 
9/12 at 100.00
BBB
 
4,300,025
 
     
San Jose Redevelopment Agency, California, Tax Allocation Bonds, Merged Project Area, Series 2005A:
           
 
3,310
 
5.000%, 8/01/20 – NPFG Insured
 
No Opt. Call
BBB
 
3,377,623
 
 
1,500
 
5.000%, 8/01/28 – NPFG Insured
 
8/15 at 100.00
BBB
 
1,459,005
 
 
5,510
 
Sweetwater Union High School District Public Financing Authority, California, Special Tax Revenue Bonds, Series 2005A, 5.000%, 9/01/28 – AGM Insured
 
9/15 at 100.00
AA–
 
5,727,865
 
 
Nuveen Investments
 
37

 
 

 
 
   
Nuveen Insured California Premium Income Municipal Fund 2, Inc. (continued)
NCL
 
Portfolio of Investments
February 29, 2012
 
 
Principal
     
Optional Call
       
 
Amount (000)
 
Description (1)
 
Provisions (2)
Ratings (3)
 
Value
 
     
Tax Obligation/Limited (continued)
           
$
1,205
 
Tustin Community Redevelopment Agency, California, Tax Allocation Housing Bonds Series 2010, 5.000%, 9/01/30 – AGM Insured
 
No Opt. Call
AA–
$
1,307,883
 
 
1,020
 
Washington Unified School District, Yolo County, California, Certificates of Participation, Series 2007, 5.125%, 8/01/37 – AMBAC Insured
 
8/17 at 100.00
A
 
1,060,025
 
 
125,845
 
Total Tax Obligation/Limited
       
124,076,102
 
     
Transportation – 4.6% (3.2% of Total Investments)
           
 
6,500
 
Foothill/Eastern Transportation Corridor Agency, California, Toll Road Revenue Refunding Bonds, Series 1999, 0.000%, 1/15/18 – NPFG Insured
 
4/12 at 72.76
BBB
 
4,685,070
 
 
4,000
 
Orange County Transportation Authority, California, Toll Road Revenue Bonds, 91 Express Lanes Project, Series 2003A, 5.000%, 8/15/18 – AMBAC Insured
 
8/13 at 100.00
A1
 
4,203,280
 
 
10,500
 
Total Transportation
       
8,888,350
 
     
U.S. Guaranteed – 2.6% (1.8% of Total Investments) (5)
           
 
1,495
 
Central Unified School District, Fresno County, California, General Obligation Bonds, Series 1993, 5.625%, 3/01/18 – AMBAC Insured (ETM)
 
9/12 at 100.00
N/R (5)
 
1,534,961
 
 
2,750
 
Riverside County, California, GNMA Mortgage-Backed Securities Program Single Family Mortgage Revenue Bonds, Series 1987B, 8.625%, 5/01/16 (Alternative Minimum Tax) (ETM)
 
No Opt. Call
Aaa
 
3,572,305
 
 
4,245
 
Total U.S. Guaranteed
       
5,107,266
 
     
Utilities – 7.9% (5.5% of Total Investments)
           
 
670
 
Merced Irrigation District, California, Electric System Revenue Bonds, Series 2005, 5.125%, 9/01/31 – SYNCORA GTY Insured
 
9/15 at 100.00
N/R
 
666,322
 
 
100
 
Sacramento City Financing Authority, California, Capital Improvement Revenue Bonds, Solid Waste and Redevelopment Projects, Series 1999, 5.800%, 12/01/19 – AMBAC Insured
 
6/12 at 100.00
N/R
 
100,130
 
 
1,950
 
Salinas Valley Solid Waste Authority, California, Revenue Bonds, Series 2002, 5.250%, 8/01/27 – AMBAC Insured (Alternative Minimum Tax)
 
8/12 at 100.00
A+
 
1,955,733
 
     
Santa Clara, California, Subordinate Electric Revenue Bonds, Series 2003A:
           
 
2,800
 
5.000%, 7/01/24 – NPFG Insured
 
7/13 at 100.00
A1
 
2,910,936
 
 
5,000
 
5.000%, 7/01/28 – NPFG Insured
 
7/13 at 100.00
A1
 
5,121,150
 
 
4,000
 
Southern California Public Power Authority, California, Milford Wind Corridor Phase I Revenue Bonds, Series 2010-1, 5.000%, 7/01/28
 
No Opt. Call
AA–
 
4,598,680
 
 
14,520
 
Total Utilities
       
15,352,951
 
     
Water and Sewer – 20.2% (14.0% of Total Investments)
           
 
1,100
 
Atwater Public Financing Authority, California, Wastewater Revenue Bonds, Tender Option Bond Trust 3145, 18.131%, 5/01/40 – AGM Insured (IF)
 
5/19 at 100.00
AA–
 
1,427,052
 
 
2,000
 
El Dorado Irrigation District, California, Water and Sewer Certificates of Participation, Series 2004A, 5.000%, 3/01/21 – FGIC Insured
 
3/14 at 100.00
A1
 
2,113,920
 
 
750
 
Fortuna Public Finance Authority, California, Water Revenue Bonds, Series 2006, 5.000%, 10/01/36 – AGM Insured
 
10/16 at 100.00
AA–
 
785,775
 
 
460
 
Healdsburg Public Financing Authority, California, Wastewater Revenue Bonds, Series 2006, 5.000%, 4/01/36 – NPFG Insured
 
4/16 at 100.00
AA–
 
478,497
 
 
2,700
 
Los Angeles County Sanitation Districts Financing Authority, California, Senior Revenue Bonds, Capital Projects, Series 2003A, 5.000%, 10/01/21 – AGM Insured
 
10/13 at 100.00
AA+
 
2,883,789
 
 
2,000
 
Los Angeles, California, Wastewater System Revenue Bonds, Series 2005A, 4.500%, 6/01/29 – NPFG Insured
 
6/15 at 100.00
AA
 
2,093,900
 
 
430
 
Marina Coast Water District, California, Enterprise Certificate of Participation, Series 2006, 5.000%, 6/01/31 – NPFG Insured
 
6/16 at 100.00
AA–
 
450,679
 
 
12,000
 
Orange County Sanitation District, California, Certificates of Participation, Series 2003, 5.000%, 2/01/33 – FGIC Insured (UB)
 
8/13 at 100.00
AAA
 
12,555,720
 
 
1,520
 
San Buenaventura, California, Water Revenue Certificates of Participation, Series 2004, 5.000%, 10/01/25 – AMBAC Insured
 
10/14 at 100.00
AA
 
1,589,342
 
 
38
 
Nuveen Investments

 
 

 
 
 
Principal
     
Optional Call
       
 
Amount (000)
 
Description (1)
 
Provisions (2)
Ratings (3)
 
Value
 
     
Water and Sewer (continued)
           
$
1,000
 
San Diego County Water Authority, California, Water Revenue Certificates of Participation, Series 2008A, 5.000%, 5/01/38 – AGM Insured
 
5/18 at 100.00
AA+
$
1,077,100
 
 
3,675
 
San Dieguito Water District, California, Water Revenue Bonds, Refunding Series 2004, 5.000%, 10/01/23 – FGIC Insured
 
10/14 at 100.00
AA+
 
4,019,054
 
     
Santa Clara Valley Water District, California, Certificates of Participation, Series 2004A:
           
 
1,400
 
5.000%, 2/01/19 – FGIC Insured
 
2/14 at 100.00
AA+
 
1,514,450
 
 
445
 
5.000%, 2/01/20 – FGIC Insured
 
2/14 at 100.00
AA+
 
480,400
 
 
465
 
5.000%, 2/01/21 – FGIC Insured
 
2/14 at 100.00
AA+
 
501,991
 
 
2,500
 
West Basin Municipal Water District, California, Revenue Certificates of Participation, Series 2003A, 5.000%, 8/01/30 – NPFG Insured
 
8/13 at 100.00
Aa2
 
2,558,675
 
     
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
AA+
 
2,124,912
 
 
2,530
 
5.000%, 10/01/33 – FGIC Insured
 
10/13 at 100.00
AA+
 
2,674,640
 
 
36,985
 
Total Water and Sewer
       
39,329,896
 
$
277,325
 
Total Investments (cost $263,273,073) – 143.8%
       
280,025,460
 
     
Floating Rate Obligations – (9.2)%
       
(17,880,000
     
Variable Rate Demand Preferred Shares, at Liquidation Value – (38.0)% (6)
       
(74,000,000
     
Other Assets Less Liabilities – 3.4%
       
6,566,572
 
     
Net Assets Applicable to Common Shares – 100%
     
$
194,712,032
 
 
   
The Fund intends to invest at least 80% of its net assets in municipal securities that are covered by insurance guaranteeing the timely payment of principal and interest. See Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies, Insurance for more information.
(1)
 
All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted.
(2)
 
Optional Call Provisions (not covered by the report of independent registered public accounting firm): 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 (not covered by the report of independent registered public accounting firm): Using the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investors Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies.
(4)
 
Investment, or portion of investment, has been pledged to collaterize the net payment obligations for investments in inverse floating rate transactions.
(5)
 
Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities, which ensure the timely payment of principal and interest. Certain bonds backed by U.S. Government or agency securities are regarded as having an implied rating equal to the rating of such securities.
(6)
 
Variable Rate Demand Preferred Shares, at Liquidation Value as a percentage of Total Investments is 26.4%.
N/R
 
Not rated.
(ETM)
 
Escrowed to maturity.
(IF)
 
Inverse floating rate investment.
(UB)
 
Underlying bond of an inverse floating rate trust reflected as a financing transaction. See Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies, Inverse Floating Rate Securities for more information.
 
See accompanying notes to financial statements.
 
Nuveen Investments
 
39

 
 

 
 
   
Nuveen California Premium Income Municipal Fund
NCU
 
Portfolio of Investments
February 29, 2012
 
 
Principal
     
Optional Call
       
 
Amount (000)
 
Description (1)
 
Provisions (2)
Ratings (3)
 
Value
 
     
Consumer Staples – 6.2% (4.3% of Total Investments)
           
$
1,500
 
California County Tobacco Securitization Agency, Tobacco Settlement Asset-Backed Bonds, Alameda County Tobacco Asset Securitization Corporation, Series 2002, 5.750%, 6/01/29
 
6/12 at 100.00
Baa1
$
1,480,485
 
 
205
 
California County Tobacco Securitization Agency, Tobacco Settlement Asset-Backed Bonds, Sonoma County Tobacco Securitization Corporation, Series 2005, 4.250%, 6/01/21
 
6/15 at 100.00
BB+
 
197,679
 
 
2,860
 
California Statewide Financing Authority, Tobacco Settlement Asset-Backed Bonds, Pooled Tobacco Securitization Program, Series 2002A, 5.625%, 5/01/29
 
5/12 at 100.00
B2
 
2,775,544
 
 
485
 
Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed Bonds, Series 2007A-1, 5.750%, 6/01/47
 
6/17 at 100.00
B–
 
372,543
 
 
865
 
Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed Bonds, Series 2007A-2, 0.000%, 6/01/37
 
6/22 at 100.00
BB–
 
603,969
 
 
5,915
 
Total Consumer Staples
       
5,430,220
 
     
Education and Civic Organizations – 6.2% (4.3% of Total Investments)
           
 
70
 
California Educational Facilities Authority, Revenue Bonds, University of Redlands, Series 2005A, 5.000%, 10/01/35
 
10/15 at 100.00
A3
 
71,483
 
     
California Educational Facilities Authority, Revenue Bonds, University of the Pacific, Series 2006:
           
 
45
 
5.000%, 11/01/21
 
11/15 at 100.00
A2
 
48,394
 
 
60
 
5.000%, 11/01/25
 
11/15 at 100.00
A2
 
63,686
 
 
1,112
 
California State Public Works Board, Lease Revenue Bonds, University of California Regents, Tender Option Bond Trust 1065, 9.214%, 3/01/33 (IF)
 
3/18 at 100.00
Aa2
 
1,279,423
 
 
2,000
 
California State University, Systemwide Revenue Bonds, Series 2005C, 5.000%, 11/01/27 – NPFG Insured
 
11/15 at 100.00
Aa2
 
2,135,000
 
 
185
 
California Statewide Communities Development Authority, Charter School Revenue Bonds, Rocketship 4 – Mosaic Elementary Charter School, Series 2011A, 8.500%, 12/01/41
 
12/21 at 100.00
N/R
 
194,209
 
 
300
 
California Statewide Communities Development Authority, School Facility Revenue Bonds, Alliance College-Ready Public Schools, Series 2011A, 7.000%, 7/01/46
 
7/21 at 100.00
N/R
 
317,442
 
 
1,245
 
University of California, General Revenue Bonds, Series 2003A, 5.125%, 5/15/17 – AMBAC Insured (UB)
 
5/13 at 100.00
Aa1
 
1,316,712
 
 
5,017
 
Total Education and Civic Organizations
       
5,426,349
 
     
Health Care – 31.3% (21.9% of Total Investments)
           
 
2,745
 
California Health Facilities Financing Authority, Hospital Revenue Bonds, Downey Community Hospital, Series 1993, 5.750%, 5/15/15
 
5/12 at 100.00
N/R
 
2,747,827
 
 
335
 
California Health Facilities Financing Authority, Revenue Bonds, Rady Children’s Hospital – San Diego, Series 2011, 5.250%, 8/15/41
 
8/21 at 100.00
A2
 
349,586
 
 
3,525
 
California Health Facilities Financing Authority, Revenue Bonds, Sutter Health, Series 2007A, 5.250%, 11/15/46 (UB)
 
11/16 at 100.00
AA–
 
3,697,302
 
 
685
 
California Municipal Financing Authority, Certificates of Participation, Community Hospitals of Central California, Series 2007, 5.250%, 2/01/46
 
2/17 at 100.00
BBB
 
680,561
 
 
815
 
California Statewide Communities Development Authority, Revenue Bonds, ValleyCare Health System, Series 2007A, 5.125%, 7/15/31
 
7/17 at 100.00
N/R
 
749,197
 
 
1,740
 
California Statewide Community Development Authority, Revenue Bonds, Daughters of Charity Health System, Series 2005A, 5.250%, 7/01/30
 
7/15 at 100.00
BBB
 
1,745,150
 
 
730
 
California Statewide Community Development Authority, Revenue Bonds, Kaiser Permanente System, Series 2001C, 5.250%, 8/01/31
 
8/16 at 100.00
A+
 
783,597
 
 
3,000
 
California Statewide Community Development Authority, Revenue Bonds, Methodist Hospital Project, Series 2009, 6.750%, 2/01/38
 
8/19 at 100.00
Aa2
 
3,594,390
 
 
2,100
 
California Statewide Community Development Authority, Revenue Bonds, Sherman Oaks Health System, Series 1998A, 5.000%, 8/01/22 – AMBAC Insured
 
No Opt. Call
A1
 
2,327,745
 
 
40
 
Nuveen Investments

 
 

 
 
 
Principal
     
Optional Call
       
 
Amount (000)
 
Description (1)
 
Provisions (2)
Ratings (3)
 
Value
 
     
Health Care (continued)
           
$
377
 
California Statewide Community Development Authority, Revenue Bonds, St. Joseph Health System, Trust 2554, 18.382%, 7/01/47 – AGM Insured (IF)
 
7/18 at 100.00
AA–
$
460,866
 
 
1,690
 
California Statewide Community Development Authority, Revenue Bonds, Sutter Health, Series 2005A, 5.000%, 11/15/43
 
11/15 at 100.00
AA–
 
1,733,281
 
 
760
 
Loma Linda, California, Hospital Revenue Bonds, Loma Linda University Medical Center, Series 2008A, 8.250%, 12/01/38
 
12/17 at 100.00
BBB
 
865,838
 
 
2,600
 
Marysville, California, Revenue Bonds, The Fremont-Rideout Health Group, Series 2011, 5.250%, 1/01/42
 
1/21 at 100.00
A
 
2,730,104
 
 
1,450
 
Palomar Pomerado Health Care District, California, Certificates of Participation, Series 2010, 6.000%, 11/01/41
 
11/20 at 100.00
Baa3
 
1,491,282
 
 
850
 
San Buenaventura, California, Revenue Bonds, Community Memorial Health System, Series 2011, 7.500%, 12/01/41
 
12/21 at 100.00
BB
 
958,426
 
 
1,415
 
Santa Clara County Financing Authority, California, Insured Revenue Bonds, El Camino Hospital, Series 2007A, 5.750%, 2/01/41 – AMBAC Insured
 
8/17 at 100.00
A+
 
1,510,074
 
 
1,000
 
The Regents of the University of California, Medical Center Pooled Revenue Bonds, Series 2009E, 5.000%, 5/15/38
 
5/17 at 101.00
Aa2
 
1,048,570
 
 
25,817
 
Total Health Care
       
27,473,796
 
     
Housing/Multifamily – 1.2% (0.8% of Total Investments)
           
 
495
 
California Municipal Finance Authority, Mobile Home Park Revenue Bonds, Caritas Projects Series 2010A, 6.400%, 8/15/45
 
8/20 at 100.00
BBB
 
511,553
 
 
155
 
California Municipal Finance Authority, Mobile Home Park Revenue Bonds, Caritas Projects Series 2012A, 5.500%, 8/15/47 (WI/DD, Settling 3/13/12)
 
8/22 at 100.00
BBB
 
153,450
 
 
350
 
California Municipal Finance Authority, Mobile Home Park Revenue Bonds, Caritas Projects Series 2012B, 7.250%, 8/15/47 (WI/DD, Settling 3/13/12)
 
8/22 at 100.00
N/R
 
350,000
 
 
1,000
 
Total Housing/Multifamily
       
1,015,003
 
     
Housing/Single Family – 2.8% (2.0% of Total Investments)
           
 
2,360
 
California Housing Finance Agency, California, Home Mortgage Revenue Bonds, Series 2008L, 5.500%, 8/01/38
 
2/18 at 100.00
BBB
 
2,380,036
 
 
90
 
California Housing Finance Agency, Home Mortgage Revenue Bonds, Series 2006H, 5.750%, 8/01/30 – FGIC Insured (Alternative Minimum Tax)
 
2/16 at 100.00
BBB
 
90,061
 
 
2,450
 
Total Housing/Single Family
       
2,470,097
 
     
Tax Obligation/General – 27.8% (19.5% of Total Investments)
           
     
California State, General Obligation Bonds, Various Purpose Series 2009:
           
 
1,300
 
5.500%, 11/01/39
 
11/19 at 100.00
A1
 
1,447,186
 
 
2,350
 
6.000%, 11/01/39
 
11/19 at 100.00
A1
 
2,746,469
 
 
1,500
 
California, General Obligation Bonds, Series 2003, 5.000%, 2/01/31 – NPFG Insured
 
2/13 at 100.00
A1
 
1,529,880
 
 
4,475
 
Coast Community College District, Orange County, California, General Obligation Bonds, Series 2006C, 0.000%, 8/01/31 – AGM Insured
 
8/18 at 100.00
Aa1
 
4,263,512
 
 
6,000
 
Hartnell Community College District, California, General Obligation Bonds, Series 2006B, 5.000%, 6/01/29 – AGM Insured (UB)
 
6/16 at 100.00
Aa2
 
6,484,500
 
 
2,240
 
Pomona Unified School District, Los Angeles County, California, General Obligation Refunding Bonds, Series 1997A, 6.150%, 8/01/15 – NPFG Insured
 
8/12 at 102.00
A
 
2,334,752
 
 
15
 
Riverside Community College District, California, General Obligation Bonds, Series 2004A, 5.250%, 8/01/22 – NPFG Insured
 
8/14 at 100.00
AA
 
16,613
 
 
135
 
Roseville Joint Union High School District, Placer County, California, General Obligation Bonds, Series 2006B, 5.000%, 8/01/27 – FGIC Insured
 
8/15 at 100.00
AA–
 
149,232
 
 
1,355
 
San Jose-Evergreen Community College District, Santa Clara County, California, General Obligation Bonds, Series 2005A, 5.000%, 9/01/25 – NPFG Insured
 
9/15 at 100.00
Aa1
 
1,528,345
 
 
8,345
 
Yosemite Community College District, California, General Obligation Bonds, Capital Appreciation, Election 2004, Series 2010D, 0.000%, 8/01/42
 
No Opt. Call
Aa2
 
2,788,231
 
 
1,000
 
Yuba Community College District, California, General Obligation Bonds, Election 2006 Series 2011C, 5.250%, 8/01/47
 
8/21 at 100.00
Aa2
 
1,098,200
 
 
28,715
 
Total Tax Obligation/General
       
24,386,920
 
 
Nuveen Investments
 
41

 
 

 
 
   
Nuveen California Premium Income Municipal Fund (continued)
NCU
 
Portfolio of Investments
February 29, 2012
 
 
Principal
     
Optional Call
       
 
Amount (000)
 
Description (1)
 
Provisions (2)
Ratings (3)
 
Value
 
     
Tax Obligation/Limited – 41.2% (28.8% of Total Investments)
           
$
1,000
 
Bell Community Redevelopment Agency, California, Tax Allocation Bonds, Bell Project Area, Series 2003, 5.625%, 10/01/33 – RAAI Insured
 
10/13 at 100.00
N/R
$
870,470
 
     
California Infrastructure and Economic Development Bank, Revenue Bonds, North County Center for Self-Sufficiency Corporation, Series 2004:
           
 
1,695
 
5.000%, 12/01/22 – AMBAC Insured
 
12/13 at 100.00
AA
 
1,820,447
 
 
1,865
 
5.000%, 12/01/24 – AMBAC Insured
 
12/13 at 100.00
AA
 
2,003,029
 
 
5,920
 
California State Public Works Board, Lease Revenue Bonds, Department of Veterans Affairs, Southern California Veterans Home – Chula Vista Facility, Series 1999A, 5.600%, 11/01/19 – AMBAC Insured
 
5/12 at 100.00
A2
 
5,937,817
 
 
1,000
 
California State Public Works Board, Lease Revenue Bonds, Various Capital Projects, Series 2009G-1, 5.750%, 10/01/30
 
10/19 at 100.00
A2
 
1,135,590
 
 
2,000
 
California State Public Works Board, Lease Revenue Bonds, Various Capital Projects, Series 2009-I, 6.375%, 11/01/34
 
11/19 at 100.00
A2
 
2,350,000
 
 
535
 
California, Economic Recovery Revenue Bonds, Series 2004A, 5.000%, 7/01/15
 
7/14 at 100.00
Aa3
 
588,072
 
 
165
 
Capistrano Unified School District, Orange County, California, Special Tax Bonds, Community Facilities District, Series 2005, 5.000%, 9/01/24 – FGIC Insured
 
9/15 at 100.00
BBB
 
169,369
 
 
500
 
Chino Redevelopment Agency, California, Merged Chino Redevelopment Project Area Tax Allocation Bonds, Series 2006, 5.000%, 9/01/38 – AMBAC Insured
 
9/16 at 101.00
A–
 
483,260
 
 
260
 
Dinuba Redevelopment Agency, California, Tax Allocation Bonds, Merged City of Dinuba Redevelopment Project and Dinuba Redevelopment Project 2, As Amended, Refunding Series 2001, 5.000%, 9/01/31 – NPFG Insured
 
9/12 at 101.00
A–
 
261,063
 
 
350
 
Fontana, California, Redevelopment Agency, Jurupa Hills Redevelopment Project, Tax Allocation Refunding Bonds, 1997 Series A, 5.500%, 10/01/27
 
4/12 at 100.00
A–
 
350,245
 
 
320
 
Inglewood Redevelopment Agency, California, Tax Allocation Bonds, Merged Redevelopment Project, Subordinate Lien Series 2007A-1, 5.000%, 5/01/24 – AMBAC Insured
 
5/17 at 100.00
BBB+
 
318,822
 
     
Irvine, California, Unified School District, Community Facilities District Special Tax Bonds, Series 2006A:
           
 
75
 
5.000%, 9/01/26
 
9/16 at 100.00
N/R
 
76,361
 
 
175
 
5.125%, 9/01/36
 
9/16 at 100.00
N/R
 
175,243
 
 
3,500
 
Livermore Redevelopment Agency, California, Tax Allocation Revenue Bonds, Livermore Redevelopment Project Area, Series 2001A, 5.000%, 8/01/26 – NPFG Insured
 
8/12 at 100.00
BBB+
 
3,446,870
 
 
310
 
Los Angeles Community Redevelopment Agency, California, Lease Revenue Bonds, Manchester Social Services Project, Series 2005, 5.000%, 9/01/37 – AMBAC Insured
 
9/15 at 100.00
A1
 
313,720
 
 
2,000
 
Los Angeles, California, Municipal Improvement Corporation, Lease Revenue Bonds, Police Headquarters, Series 2006A, 4.750%, 1/01/31 – FGIC Insured
 
1/17 at 100.00
A+
 
2,071,080
 
 
475
 
Lynwood Redevelopment Agency, California, Project A Revenue Bonds, Subordinate Lien Series 2011A, 7.250%, 9/01/38
 
9/21 at 100.00
A–
 
558,619
 
 
3,230
 
Murrieta Redevelopment Agency, California, Tax Allocation Bonds, Series 2005, 5.000%, 8/01/35 – NPFG Insured
 
8/15 at 100.00
A–
 
3,205,646
 
 
170
 
National City Community Redevelopment Agency, California, Tax Allocation Revenue Bonds, National City Redevelopment Project Area, Series 2011, 6.500%, 8/01/24
 
8/21 at 100.00
A–
 
196,903
 
 
65
 
Novato Redevelopment Agency, California, Tax Allocation Bonds, Hamilton Field Redevelopment Project, Series 2011, 6.750%, 9/01/40
 
9/21 at 100.00
A–
 
73,786
 
     
Perris Union High School District Financing Authority, Riverside County, California, Revenue Bonds, Series 2011:
           
 
60
 
6.000%, 9/01/33
 
No Opt. Call
N/R
 
61,923
 
 
135
 
6.125%, 9/01/41
 
No Opt. Call
N/R
 
139,266
 
 
540
 
Pittsburg Redevelopment Agency, California, Tax Allocation Bonds, Los Medanos Community Development Project, Refunding Series 2008A, 6.500%, 9/01/28
 
9/18 at 100.00
BBB
 
560,239
 
 
210
 
Rancho Santa Fe CSD Financing Authority, California, Revenue Bonds, Superior Lien Series 2011A, 5.750%, 9/01/30
 
9/21 at 100.00
BBB+
 
226,580
 
 
155
 
Rialto Redevelopment Agency, California, Tax Allocation Bonds, Merged Project Area, Series 2005A, 5.000%, 9/01/35 – SYNCORA GTY Insured
 
9/15 at 100.00
A–
 
152,996
 
 
42
 
Nuveen Investments

 
 

 
 
 
Principal
     
Optional Call
       
 
Amount (000)
 
Description (1)
 
Provisions (2)
Ratings (3)
 
Value
 
     
Tax Obligation/Limited (continued)
           
$
40
 
Riverside County Redevelopment Agency, California, Tax Allocation Bonds, Jurupa Valley Project Area, Series 2011-B, 6.500%, 10/01/25
 
10/21 at 100.00
A–
$
44,299
 
 
190
 
Roseville, California, Certificates of Participation, Public Facilities, Series 2003A, 5.000%, 8/01/25 – AMBAC Insured
 
8/13 at 100.00
AA–
 
194,030
 
 
1,500
 
Sacramento City Financing Authority, California, Lease Revenue Refunding Bonds, Series 1993A, 5.400%, 11/01/20 – NPFG Insured
 
No Opt. Call
A1
 
1,734,345
 
 
3,000
 
Sacramento City Financing Authority, California, Lease Revenue Refunding Bonds, Series 1993B, 5.400%, 11/01/20
 
No Opt. Call
A1
 
3,468,690
 
 
2,000
 
San Francisco City and County, California, Certificates of Participation, Multiple Capital Improvement Projects, Series 2009A, 5.200%, 4/01/26
 
4/19 at 100.00
AA–
 
2,227,020
 
 
30
 
San Francisco Redevelopment Finance Authority, California, Tax Allocation Revenue Bonds, Mission Bay North Redevelopment Project, Series 2011C, 6.750%, 8/01/41
 
2/21 at 100.00
A–
 
33,853
 
     
San Francisco Redevelopment Financing Authority, California, Tax Allocation Revenue Bonds, Mission Bay South Redevelopment Project, Series 2011D:
           
 
30
 
7.000%, 8/01/33
 
2/21 at 100.00
BBB
 
34,159
 
 
40
 
7.000%, 8/01/41
 
2/21 at 100.00
BBB
 
45,025
 
 
275
 
San Jose Redevelopment Agency, California, Tax Allocation Bonds, Merged Area Redevelopment Project, Series 2006C, 5.000%, 8/01/25 – NPFG Insured
 
8/17 at 100.00
BBB
 
276,026
 
 
360
 
San Jose Redevelopment Agency, California, Tax Allocation Bonds, Merged Area Redevelopment Project, Series 2006D, 5.000%, 8/01/23 – AMBAC Insured
 
8/17 at 100.00
BBB
 
364,072
 
 
50
 
Signal Hill Redevelopment Agency, California, Project 1 Tax Allocation Bonds, Series 2011, 7.000%, 10/01/26
 
4/21 at 100.00
N/R
 
53,244
 
 
95
 
Yorba Linda Redevelopment Agency, Orange County, California, Tax Allocation Revenue Bonds, Yorba Linda Redevelopment Project, Subordinate Lien Series 2011A, 6.000%, 9/01/26
 
9/21 at 100.00
A–
 
105,395
 
 
34,320
 
Total Tax Obligation/Limited
       
36,127,574
 
     
Transportation – 3.4% (2.4% of Total Investments)
           
 
780
 
Bay Area Toll Authority, California, Revenue Bonds, San Francisco Bay Area Toll Bridge, Series 2006F, 5.000%, 4/01/31 (UB)
 
4/16 at 100.00
AA
 
877,133
 
 
220
 
Bay Area Toll Authority, California, Revenue Bonds, San Francisco Bay Area Toll Bridge, Series 2008, Trust 3211, 13.491%, 10/01/32 (IF)
 
4/18 at 100.00
AA
 
286,431
 
 
2,000
 
Foothill/Eastern Transportation Corridor Agency, California, Toll Road Revenue Bonds, Series 1995A, 5.000%, 1/01/35
 
7/12 at 100.00
BBB–
 
1,810,440
 
 
3,000
 
Total Transportation
       
2,974,004
 
     
U.S. Guaranteed – 9.9% (7.0% of Total Investments) (4)
           
 
3,000
 
California Infrastructure Economic Development Bank, First Lien Revenue Bonds, San Francisco Bay Area Toll Bridge, Series 2003A, 5.000%, 7/01/22 – AGM Insured (ETM)
 
No Opt. Call
Aaa
 
3,895,320
 
 
370
 
California, Economic Recovery Revenue Bonds, Series 2004A, 5.000%, 7/01/15 (Pre-refunded 7/01/14)
 
7/14 at 100.00
Aaa
 
411,007
 
 
3,495
 
Orange County Sanitation District, California, Certificates of Participation, Series 2003, 5.250%, 2/01/21 (Pre-refunded 8/01/13) – FGIC Insured
 
8/13 at 100.00
AAA
 
3,745,801
 
 
325
 
San Mateo Union High School District, San Mateo County, California, Certificates of Participation, Phase 1, Series 2007A, 5.000%, 12/15/30 (Pre-refunded 12/15/17) – AMBAC Insured
 
12/17 at 100.00
AA– (4)
 
400,270
 
 
255
 
University of California, General Revenue Bonds, Series 2003A, 5.125%, 5/15/17 (Pre-refunded 5/15/13) – AMBAC Insured (UB)
 
5/13 at 100.00
Aa1 (4)
 
269,991
 
 
7,445
 
Total U.S. Guaranteed
       
8,722,389
 
     
Utilities – 5.6% (4.0% of Total Investments)
           
 
890
 
Long Beach Bond Finance Authority, California, Natural Gas Purchase Revenue Bonds, Series 2007A, 5.500%, 11/15/37
 
No Opt. Call
A–
 
975,805
 
 
275
 
Los Angeles Department of Water and Power, California, Power System Revenue Bonds, Series 2003A-2, 5.000%, 7/01/21 – NPFG Insured
 
7/13 at 100.00
AA–
 
291,242
 
 
Nuveen Investments
 
43

 
 

 
 
   
Nuveen California Premium Income Municipal Fund (continued)
NCU
 
Portfolio of Investments
February 29, 2012

 
Principal
     
Optional Call
       
 
Amount (000)
 
Description (1)
 
Provisions (2)
Ratings (3)
 
Value
 
     
Utilities (continued)
           
$
295
 
Merced Irrigation District, California, Electric System Revenue Bonds, Series 2005, 5.125%, 9/01/31 – SYNCORA GTY Insured
 
9/15 at 100.00
N/R
$
293,380
 
 
3,320
 
Sacramento Municipal Utility District, California, Electric Revenue Refunding Bonds, Series 2002Q, 5.250%, 8/15/20 – AGM Insured
 
No Opt. Call
AA–
 
3,385,836
 
 
4,780
 
Total Utilities
       
4,946,263
 
     
Water and Sewer – 7.2% (5.0% of Total Investments)
           
 
1,125
 
Burbank, California, Wastewater System Revenue Bonds, Series 2004A, 5.000%, 6/01/23 – AMBAC Insured
 
6/14 at 100.00
AA+
 
1,190,340
 
 
205
 
Healdsburg Public Financing Authority, California, Wastewater Revenue Bonds, Series 2006, 5.000%, 4/01/36 – NPFG Insured
 
4/16 at 100.00
AA–
 
213,243
 
 
670
 
Metropolitan Water District of Southern California, Waterworks Revenue Bonds, Tender Option Bond Trust 09-8B, 18.162%, 7/01/35 (IF) (5)
 
7/19 at 100.00
AAA
 
1,010,280
 
 
1,500
 
Orange County Water District, California, Revenue Certificates of Participation, Tender Option Bond Trust 11782-1, 17.835%, 2/15/35 (IF)
 
8/19 at 100.00
AAA
 
2,092,620
 
 
1,795
 
Woodbridge Irrigation District, California, Certificates of Participation, Water Systems Project, Series 2003, 5.500%, 7/01/33
 
7/13 at 100.00
A+
 
1,814,458
 
 
5,295
 
Total Water and Sewer
       
6,320,941
 
$
123,754
 
Total Investments (cost $115,646,263) – 142.8%
       
125,293,556
 
     
Floating Rate Obligations – (7.6)%
       
(6,650,000
     
MuniFund Term Preferred Shares, at Liquidation Value – (40.2)% (6)
       
(35,250,000
     
Other Assets Less Liabilities – 5.0%
       
4,361,582
 
     
Net Assets Applicable to Common Shares – 100%
     
$
87,755,138
 
 
(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 (not covered by the report of independent registered public accounting firm): 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 (not covered by the report of independent registered public accounting firm): Using the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investors Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies.
(4)
 
Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities, which ensure the timely payment of principal and interest. Certain bonds backed by U.S. Government or agency securities are regarded as having an implied rating equal to the rating of such securities.
(5)
 
Investment, or portion of investment, has been pledged to collaterize the net payment obligations for investments in inverse floating rate transactions.
(6)
 
MuniFund Term Preferred Shares, at Liquidation Value as a percentage of Total Investments is 28.1%.
N/R
 
Not rated.
WI/DD
 
Purchased on a when-issued or delayed delivery basis.
(ETM)
 
Escrowed to maturity.
(IF)
 
Inverse floating rate investment.
(UB)
 
Underlying bond of an inverse floating rate trust reflected as a financing transaction. See Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies, Inverse Floating Rate Securities for more information.
 
See accompanying notes to financial statements.
 
44
 
Nuveen Investments

 
 

 
 
   
Nuveen California Dividend Advantage Municipal Fund
NAC
 
Portfolio of Investments
February 29, 2012
 
 
Principal
     
Optional Call
       
 
Amount (000)
 
Description (1)
 
Provisions (2)
Ratings (3)
 
Value
 
     
Consumer Staples – 7.0% (4.8% of Total Investments)
           
$
865
 
California County Tobacco Securitization Agency, Tobacco Settlement Asset-Backed Bonds, Sonoma County Tobacco Securitization Corporation, Series 2005, 4.250%, 6/01/21
 
6/15 at 100.00
BB+
$
834,111
 
     
Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed Bonds, Series 2007A-1:
           
 
17,805
 
5.750%, 6/01/47
 
6/17 at 100.00
B–
 
13,676,555
 
 
2,000
 
5.125%, 6/01/47
 
6/17 at 100.00
B–
 
1,384,640
 
 
11,960
 
Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed Bonds, Series 2007A-2, 0.000%, 6/01/37
 
6/22 at 100.00
BB–
 
8,350,831
 
 
32,630
 
Total Consumer Staples
       
24,246,137
 
     
Education and Civic Organizations – 7.9% (5.4% of Total Investments)
           
 
2,500
 
California Educational Facilities Authority, Revenue Bonds, Santa Clara University, Series 2010, 5.000%, 2/01/40
 
2/20 at 100.00
Aa3
 
2,734,800
 
 
290
 
California Educational Facilities Authority, Revenue Bonds, University of Redlands, Series 2005A, 5.000%, 10/01/35
 
10/15 at 100.00
A3
 
296,142
 
 
10,000
 
California Educational Facilities Authority, Revenue Bonds, University of Southern California, Series 2007A, 4.500%, 10/01/33 (UB)
 
10/17 at 100.00
Aa1
 
10,721,100
 
     
California Educational Facilities Authority, Revenue Bonds, University of the Pacific, Series 2006:
           
 
200
 
5.000%, 11/01/21
 
11/15 at 100.00
A2
 
215,086
 
 
265
 
5.000%, 11/01/25
 
11/15 at 100.00
A2
 
281,279
 
 
4,685
 
California State Public Works Board, Lease Revenue Bonds, University of California Regents, Tender Option Bond Trust 1065, 9.214%, 3/01/33 (IF)
 
3/18 at 100.00
Aa2
 
5,390,374
 
 
1,250
 
California Statewide Communities Development Authority, School Facility Revenue Bonds, Alliance College-Ready Public Schools, Series 2011A, 7.000%, 7/01/46
 
7/21 at 100.00
N/R
 
1,322,675
 
 
605
 
California Statewide Community Development Authority, Revenue Bonds, Notre Dame de Namur University, Series 2003, 6.500%, 10/01/23
 
10/13 at 100.00
N/R
 
605,762
 
 
3,000
 
Long Beach Bond Financing Authority, California, Lease Revenue Refunding Bonds, Long Beach Aquarium of the South Pacific, Series 2001, 5.500%, 11/01/17 – AMBAC Insured
 
5/12 at 100.00
BBB
 
3,009,240
 
 
2,900
 
University of California, General Revenue Bonds, Series 2003A, 5.125%, 5/15/17 – AMBAC Insured (UB)
 
5/13 at 100.00
Aa1
 
3,067,040
 
 
25,695
 
Total Education and Civic Organizations
       
27,643,498
 
     
Health Care – 30.2% (20.6% of Total Investments)
           
 
2,160
 
California Health Facilities Financing Authority, Health Facility Revenue Bonds, Adventist Health System/West, Series 2003A, 5.000%, 3/01/15
 
3/13 at 100.00
A
 
2,234,390
 
 
1,420
 
California Health Facilities Financing Authority, Revenue Bonds, Rady Children’s Hospital – San Diego, Series 2011, 5.250%, 8/15/41
 
8/21 at 100.00
A2
 
1,481,827
 
 
14,895
 
California Health Facilities Financing Authority, Revenue Bonds, Sutter Health, Series 2007A, 5.250%, 11/15/46 (UB)
 
11/16 at 100.00
AA–
 
15,623,068
 
 
6,530
 
California Health Facilities Financing Authority, Revenue Bonds, Sutter Health, Series 2011B, 6.000%, 8/15/42
 
8/20 at 100.00
AA–
 
7,558,475
 
 
1,120
 
California Statewide Communities Development Authority, Revenue Bonds, Adventist Health System West, Series 2005A, 5.000%, 3/01/35
 
3/15 at 100.00
A
 
1,136,990
 
 
5,500
 
California Statewide Communities Development Authority, Revenue Bonds, Sutter Health, Series 2011A, 6.000%, 8/15/42
 
8/20 at 100.00
AA–
 
6,366,250
 
 
3,325
 
California Statewide Communities Development Authority, Revenue Bonds, ValleyCare Health System, Series 2007A, 5.125%, 7/15/31
 
7/17 at 100.00
N/R
 
3,056,540
 
     
California Statewide Community Development Authority, Revenue Bonds, Daughters of Charity Health System, Series 2005A:
           
 
1,760
 
5.250%, 7/01/24
 
7/15 at 100.00
BBB
 
1,797,101
 
 
3,870
 
5.250%, 7/01/30
 
7/15 at 100.00
BBB
 
3,881,455
 
 
Nuveen Investments
 
45

 
 

 
 
   
Nuveen California Dividend Advantage Municipal Fund (continued)
NAC
 
Portfolio of Investments
February 29, 2012
 
 
Principal
     
Optional Call
       
 
Amount (000)
 
Description (1)
 
Provisions (2)
Ratings (3)
 
Value
 
     
Health Care (continued)
           
$
10,140
 
California Statewide Community Development Authority, Revenue Bonds, Kaiser Permanante System, Series 2006, 5.000%, 3/01/41
 
3/16 at 100.00
A+
$
10,494,799
 
 
3,095
 
California Statewide Community Development Authority, Revenue Bonds, Kaiser Permanente System, Series 2001C, 5.250%, 8/01/31
 
8/16 at 100.00
A+
 
3,322,235
 
 
9,980
 
California Statewide Community Development Authority, Revenue Bonds, Kaiser Permanente System, Series 2006, 5.000%, 3/01/41 – BHAC Insured (UB)
 
3/16 at 100.00
AA+
 
10,291,975
 
 
2,250
 
California Statewide Community Development Authority, Revenue Bonds, Methodist Hospital Project, Series 2009, 6.750%, 2/01/38
 
8/19 at 100.00
Aa2
 
2,695,793
 
 
1,586
 
California Statewide Community Development Authority, Revenue Bonds, St. Joseph Health System, Trust 2554, 18.382%, 7/01/47 – AGM Insured (IF)
 
7/18 at 100.00
AA–
 
1,941,391
 
 
10,500
 
Duarte, California, Certificates of Participation, City of Hope National Medical Center, Series 1999A, 5.250%, 4/01/31
 
4/12 at 100.00
A+
 
10,508,715
 
 
1,000
 
Loma Linda, California, Hospital Revenue Bonds, Loma Linda University Medical Center, Series 2005A, 5.000%, 12/01/23
 
12/15 at 100.00
BBB
 
1,006,380
 
 
2,860
 
Loma Linda, California, Hospital Revenue Bonds, Loma Linda University Medical Center, Series 2008A, 8.250%, 12/01/38
 
12/17 at 100.00
BBB
 
3,258,284
 
 
1,000
 
Madera County, California, Certificates of Participation, Children’s Hospital Central California, Series 2010, 5.375%, 3/15/36
 
3/20 at 100.00
A+
 
1,038,310
 
 
1,725
 
Newport Beach, California, Revenue Bonds, Hoag Memorial Hospital Presbyterian, Series 2011A, 6.000%, 12/01/40
 
12/21 at 100.00
AA
 
2,059,012
 
 
675
 
Oak Valley Hospital District, Stanislaus County, California, Revenue Bonds, Series 2010A, 6.500%, 11/01/29
 
11/20 at 100.00
BB+
 
677,936
 
 
5,450
 
Palomar Pomerado Health Care District, California, Certificates of Participation, Series 2010, 6.000%, 11/01/41
 
11/20 at 100.00
Baa3
 
5,605,162
 
 
2,570
 
Rancho Mirage Joint Powers Financing Authority, California, Revenue Bonds, Eisenhower Medical Center, Series 2007A, 5.000%, 7/01/38
 
7/17 at 100.00
Baa2
 
2,441,808
 
 
3,300
 
San Buenaventura, California, Revenue Bonds, Community Memorial Health System, Series 2011, 7.500%, 12/01/41
 
12/21 at 100.00
BB
 
3,720,948
 
 
3,000
 
Santa Clara County Financing Authority, California, Insured Revenue Bonds, El Camino Hospital, Series 2007A, 5.750%, 2/01/41 – AMBAC Insured
 
8/17 at 100.00
A+
 
3,201,570
 
 
99,711
 
Total Health Care
       
105,400,414
 
     
Housing/Multifamily – 4.1% (2.8% of Total Investments)
           
 
2,000
 
California Municipal Finance Authority, Mobile Home Park Revenue Bonds, Caritas Projects Series 2010A, 6.400%, 8/15/45
 
8/20 at 100.00
BBB
 
2,066,880
 
 
4,600
 
California Municipal Finance Authority, Mobile Home Park Revenue Bonds, Caritas Projects Series 2012A, 5.125%, 8/15/32 (WI/DD, Settling 3/13/12)
 
8/22 at 100.00
BBB
 
4,554,000
 
 
4,665
 
Contra Costa County, California, Multifamily Housing Revenue Bonds, Delta View Apartments Project, Series 1999C, 6.750%, 12/01/30 (Alternative Minimum Tax)
 
6/12 at 100.00
N/R
 
4,522,298
 
 
320
 
Independent Cities Lease Finance Authority, California, Mobile Home Park Revenue Bonds, San Juan Mobile Estates, Series 2006B, 5.850%, 5/15/41
 
5/16 at 100.00
N/R
 
315,558
 
 
1,725
 
Rohnert Park Finance Authority, California, Senior Lien Revenue Bonds, Rancho Feliz Mobile Home Park, Series 2003A, 5.750%, 9/15/38
 
9/13 at 100.00
A+
 
1,740,629
 
 
1,120
 
Rohnert Park Finance Authority, California, Subordinate Lien Revenue Bonds, Rancho Feliz Mobile Home Park, Series 2003B, 6.625%, 9/15/38
 
9/13 at 100.00
N/R
 
1,132,802
 
 
14,430
 
Total Housing/Multifamily
       
14,332,167
 
     
Housing/Single Family – 0.6% (0.4% of Total Investments)
           
 
360
 
California Housing Finance Agency, Home Mortgage Revenue Bonds, Series 2006H, 5.750%, 8/01/30 – FGIC Insured (Alternative Minimum Tax)
 
2/16 at 100.00
BBB
 
360,245
 
 
2,395
 
California Housing Finance Agency, Home Mortgage Revenue Bonds, Tender Option Bond Trust 3206, 8.286%, 2/01/29 (Alternative Minimum Tax) (IF)
 
2/17 at 100.00
BBB
 
1,843,551
 
 
2,755
 
Total Housing/Single Family
       
2,203,796
 
 
46
 
Nuveen Investments

 
 

 
 
 
Principal
     
Optional Call
       
 
Amount (000)
 
Description (1)
 
Provisions (2)
Ratings (3)
 
Value
 
     
Industrials – 0.3% (0.2% of Total Investments)
           
$
5,120
 
California Statewide Communities Development Authority, Revenue Bonds, EnerTech Regional Biosolids Project, Series 2007A, 5.500%, 12/01/33 (Alternative Minimum Tax) (4)
 
No Opt. Call
D
$
1,118,515
 
     
Long-Term Care – 1.9% (1.3% of Total Investments)
           
 
1,000
 
California Municipal Finance Authority, Revenue Bonds, Harbor Regional Center Project, Series 2009,  8.000%, 11/01/29
 
11/19 at 100.00
Baa1
 
1,144,550
 
 
8,500
 
Riverside County Public Financing Authority, California, Certificates of Participation, Air Force Village West, Series 1999, 5.800%, 5/15/29
 
5/12 at 100.00
B
 
5,614,675
 
 
9,500
 
Total Long-Term Care
       
6,759,225
 
     
Tax Obligation/General – 25.6% (17.5% of Total Investments)
           
     
Alvord Unified School District, Riverside County, California, General Obligation Bonds, 2007 Election Series 2011B:
           
 
21,000
 
0.000%, 8/01/41 – AGM Insured
 
No Opt. Call
AA–
 
4,169,550
 
 
16,840
 
0.000%, 8/01/43 – AGM Insured
 
No Opt. Call
AA–
 
2,986,574
 
 
10,000
 
California State, General Obligation Bonds, Various Purpose Series 2009, 6.000%, 11/01/39
 
11/19 at 100.00
A1
 
11,687,100
 
     
California State, General Obligation Bonds, Various Purpose Series 2010:
           
 
5,000
 
6.000%, 3/01/33
 
3/20 at 100.00
A1
 
5,995,500
 
 
8,000
 
5.500%, 3/01/40
 
3/20 at 100.00
A1
 
8,881,600
 
 
1,000
 
5.250%, 11/01/40
 
11/20 at 100.00
A1
 
1,091,170
 
 
7,000
 
California State, General Obligation Bonds, Various Purpose Series 2011, 5.000%, 10/01/41
 
10/21 at 100.00
A1
 
7,486,500
 
 
4,435
 
California, General Obligation Refunding Bonds, Series 2002, 6.000%, 4/01/16 – AMBAC Insured
 
No Opt. Call
A1
 
5,341,603
 
 
3,425
 
Coast Community College District, Orange County, California, General Obligation Bonds, Series 2006C, 0.000%, 8/01/31 – AGM Insured
 
8/18 at 100.00
AA–
 
3,263,135
 
 
5,150
 
Hacienda La Puente Unified School District Facilities Financing Authority, California, General Obligation Revenue Bonds, Series 2007, 5.000%, 8/01/26 – AGM Insured
 
No Opt. Call
AA–
 
6,026,530
 
 
5,210
 
Oak Valley Hospital District, Stanislaus County, California, General Obligation Bonds, Series 2005, 5.000%, 7/01/35 – FGIC Insured
 
7/14 at 101.00
A1
 
5,269,498
 
 
575
 
Roseville Joint Union High School District, Placer County, California, General Obligation Bonds, Series 2006B, 5.000%, 8/01/27 – FGIC Insured
 
8/15 at 100.00
AA–
 
635,617
 
 
4,000
 
San Diego Community College District, California, General Obligation Bonds, Refunding Series 2011, 5.000%, 8/01/41
 
8/21 at 100.00
AA+
 
4,493,320
 
 
5,000
 
San Diego Unified School District, San Diego County, California, General Obligation Bonds, Series 2003E, 5.250%, 7/01/20 – AGM Insured
 
7/13 at 101.00
Aa2
 
5,353,200
 
 
50,070
 
Yosemite Community College District, California, General Obligation Bonds, Capital Appreciation, Election 2004, Series 2010D, 0.000%, 8/01/42
 
No Opt. Call
Aa2
 
16,729,388
 
 
146,705
 
Total Tax Obligation/General
       
89,410,285
 
     
Tax Obligation/Limited – 39.2% (26.8% 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
 
1,017,530
 
 
615
 
5.800%, 9/01/35
 
9/14 at 102.00
N/R
 
619,594
 
 
1,910
 
Borrego Water District, California, Community Facilities District 2007-1 Montesoro, Special Tax Bonds, Series 2007, 5.750%, 8/01/25 (4)
 
8/17 at 102.00
N/R
 
611,257
 
 
1,990
 
Brentwood Infrastructure Financing Authority, California, Infrastructure Revenue Bonds, Refunding Series 2002A, 5.125%, 9/02/24 – AGM Insured
 
9/12 at 100.00
AA–
 
2,029,203
 
 
1,000
 
California State Public Works Board, Lease Revenue Bonds, Various Capital Projects, Series 2009G-1, 5.750%, 10/01/30
 
10/19 at 100.00
A2
 
1,135,590
 
 
2,000
 
California State Public Works Board, Lease Revenue Bonds, Various Capital Projects, Series 2009-I, 6.375%, 11/01/34
 
11/19 at 100.00
A2
 
2,350,000
 
 
2,000
 
Capistrano Unified School District, Orange County, California, Special Tax Bonds, Community Facilities District 90-2 – Talega, Series 2003, 6.000%, 9/01/33
 
9/13 at 100.00
N/R
 
2,026,620
 
 
Nuveen Investments
 
47

 
 

 
 
   
Nuveen California Dividend Advantage Municipal Fund (continued)
NAC
 
Portfolio of Investments
February 29, 2012
 
 
Principal
     
Optional Call
       
 
Amount (000)
 
Description (1)
 
Provisions (2)
Ratings (3)
 
Value
 
     
Tax Obligation/Limited (continued)
           
$
710
 
Capistrano Unified School District, Orange County, California, Special Tax Bonds, Community Facilities District, Series 2005, 5.000%, 9/01/24 – FGIC Insured
 
9/15 at 100.00
BBB
$
728,801
 
 
1,225
 
Chino Redevelopment Agency, California, Merged Chino Redevelopment Project Area Tax Allocation Bonds, Series 2006, 5.000%, 9/01/38 – AMBAC Insured
 
9/16 at 101.00
A–
 
1,183,987
 
 
1,040
 
Dinuba Redevelopment Agency, California, Tax Allocation Bonds, Merged City of Dinuba Redevelopment Project and Dinuba Redevelopment Project 2, As Amended, Refunding Series 2001, 5.000%, 9/01/31 – NPFG Insured
 
9/12 at 101.00
A–
 
1,044,254
 
 
1,430
 
Fontana, California, Redevelopment Agency, Jurupa Hills Redevelopment Project, Tax Allocation Refunding Bonds, 1997 Series A, 5.500%, 10/01/27
 
4/12 at 100.00
A–
 
1,431,001
 
 
3,490
 
Fontana, California, Senior Special Tax Refunding Bonds, Heritage Village Community Facilities District 2, Series 1998A, 5.250%, 9/01/17 – NPFG Insured
 
9/12 at 100.00
BBB
 
3,527,169
 
 
1,125
 
Fontana, California, Special Tax Bonds, Sierra Community Facilities District 22, Series 2004, 6.000%, 9/01/34
 
9/14 at 100.00
N/R
 
1,135,901
 
 
3,980
 
Garden Grove, California, Certificates of Participation, Financing Project, Series 2002A, 5.500%, 3/01/22 – AMBAC Insured
 
3/13 at 100.50
A
 
4,034,606
 
 
31,090
 
Golden State Tobacco Securitization Corporation, California, Enhanced Tobacco Settlement Asset-Backed Revenue Bonds, Series 2005A, 5.000%, 6/01/35 – FGIC Insured
 
6/15 at 100.00
AA–
 
31,347,730
 
 
2,850
 
Hesperia Community Redevelopment Agency, California, Tax Allocation Bonds, Series 2005A, 5.000%, 9/01/35 – SYNCORA GTY Insured
 
9/15 at 100.00
Baa3
 
2,183,870
 
 
4,500
 
Inglewood Redevelopment Agency, California, Tax Allocation Bonds, Merged Redevelopment Project, Refunding Series 1998A, 5.250%, 5/01/23 – AMBAC Insured
 
No Opt. Call
N/R
 
4,777,245
 
 
1,285
 
Inglewood Redevelopment Agency, California, Tax Allocation Bonds, Merged Redevelopment Project, Subordinate Lien Series 2007A-1, 5.000%, 5/01/25 – AMBAC Insured
 
5/17 at 100.00
BBB+
 
1,270,261
 
     
Irvine, California, Unified School District, Community Facilities District Special Tax Bonds, Series 2006A:
           
 
325
 
5.000%, 9/01/26
 
9/16 at 100.00
N/R
 
330,896
 
 
755
 
5.125%, 9/01/36
 
9/16 at 100.00
N/R
 
756,049
 
 
675
 
Lammersville School District, San Joaquin County, California, Community Facilities District 2002, Mountain House Special Tax Bonds, Series 2006, 5.125%, 9/01/35
 
9/16 at 100.00
N/R
 
630,038
 
 
2,000
 
Lee Lake Water District, Riverside County, California, Special Tax Bonds, Community Facilities District 1 of Sycamore Creek, Series 2003, 6.500%, 9/01/24
 
9/13 at 102.00
N/R
 
2,088,140
 
 
1,000
 
Lindsay Redevelopment Agency, California, Project 1 Tax Allocation Bonds, Series 2007, 5.000%, 8/01/37 – RAAI Insured
 
8/17 at 100.00
BBB+
 
948,300
 
 
1,290
 
Los Angeles Community Redevelopment Agency, California, Lease Revenue Bonds, Manchester Social Services Project, Series 2005, 5.000%, 9/01/37 – AMBAC Insured
 
9/15 at 100.00
A1
 
1,305,480
 
 
1,530
 
Moreno Valley Unified School District, Riverside County, California, Certificates of Participation, Series 2005, 5.000%, 3/01/24 – AGM Insured
 
3/14 at 100.00
AA–
 
1,639,349
 
 
3,500
 
Murrieta Redevelopment Agency, California, Tax Allocation Bonds, Series 2007A, 5.000%, 8/01/37 – NPFG Insured
 
8/17 at 100.00
A–
 
3,428,320
 
 
695
 
National City Community Redevelopment Agency, California, Tax Allocation Revenue Bonds, National City Redevelopment Project Area, Series 2011, 6.500%, 8/01/24
 
8/21 at 100.00
A–
 
804,984
 
 
9,200
 
Norco Redevelopment Agency, California, Tax Allocation Refunding Bonds, Project Area 1, Series 2001, 5.000%, 3/01/19 – NPFG Insured
 
3/13 at 100.00
A
 
9,304,788
 
     
North Natomas Community Facilities District 4, Sacramento, California, Special Tax Bonds, Series 2006D:
           
 
535
 
5.000%, 9/01/26
 
9/14 at 102.00
N/R
 
529,559
 
 
245
 
5.000%, 9/01/33
 
9/14 at 102.00
N/R
 
229,369
 
 
260
 
Novato Redevelopment Agency, California, Tax Allocation Bonds, Hamilton Field Redevelopment Project, Series 2011, 6.750%, 9/01/40
 
9/21 at 100.00
A–
 
295,144
 
 
3,290
 
Oakland Redevelopment Agency, California, Subordinate Lien Tax Allocation Bonds, Central District Redevelopment Project, Series 2003, 5.500%,
 
3/13 at 100.00
A–
 
3,431,733
 
         9/01/16 – FGIC Insured            
 
48
 
Nuveen Investments

 
 

 
 
 
Principal
     
Optional Call
       
 
Amount (000)
 
Description (1)
 
Provisions (2)
Ratings (3)
 
Value
 
     
Tax Obligation/Limited (continued)
           
$
5,600
 
Palm Springs Financing Authority, California, Lease Revenue Refunding Bonds, Convention Center Project, Series 2001A, 5.000%, 11/01/22 – NPFG Insured
 
5/12 at 101.00
BBB
$
5,658,856
 
 
1,000
 
Palmdale Community Redevelopment Agency, California, Tax Allocation Bonds, Merged Redevelopment Project Areas, Series 2004, 5.000%, 12/01/24 – AMBAC Insured
 
12/14 at 100.00
A–
 
1,008,960
 
     
Perris Union High School District Financing Authority, Riverside County, California, Revenue Bonds, Series 2011:
           
 
245
 
6.000%, 9/01/33
 
No Opt. Call
N/R
 
252,852
 
 
530
 
6.125%, 9/01/41
 
No Opt. Call
N/R
 
546,748
 
 
8,250
 
Pico Rivera Water Authority, California, Revenue Bonds, Series 2001A, 6.250%, 12/01/32
 
6/12 at 102.00
N/R
 
8,338,935
 
 
2,130
 
Pittsburg Redevelopment Agency, California, Tax Allocation Bonds, Los Medanos Community Development Project, Refunding Series 2008A, 6.500%, 9/01/28
 
9/18 at 100.00
BBB
 
2,209,832
 
 
1,570
 
Poway Redevelopment Agency, California, Tax Allocation Refunding Bonds, Paguay Redevelopment Project, Series 2000, 5.750%, 6/15/33 – NPFG Insured
 
12/12 at 100.00
BBB
 
1,578,745
 
 
845
 
Rancho Santa Fe CSD Financing Authority, California, Revenue Bonds, Superior Lien Series 2011A, 5.750%, 9/01/30
 
9/21 at 100.00
BBB+
 
911,713
 
 
620
 
Rialto Redevelopment Agency, California, Tax Allocation Bonds, Merged Project Area, Series 2005A, 5.000%, 9/01/35 – SYNCORA GTY Insured
 
9/15 at 100.00
A–
 
611,983
 
 
150
 
Riverside County Redevelopment Agency, California, Tax Allocation Bonds, Jurupa Valley Project Area, Series 2011-B, 6.500%, 10/01/25
 
10/21 at 100.00
A–
 
166,122
 
 
1,860
 
Riverside Redevelopment Agency, California, Tax Allocation Refunding Bonds, Merged Project Areas, Series 2003, 5.250%, 8/01/22 – NPFG Insured
 
8/13 at 100.00
A–
 
1,882,283
 
 
770
 
Roseville, California, Certificates of Participation, Public Facilities, Series 2003A, 5.000%, 8/01/25 – AMBAC Insured
 
8/13 at 100.00
AA–
 
786,332
 
 
2,500
 
Sacramento City Financing Authority, California, Lease Revenue Refunding Bonds, Series 1993A, 5.400%, 11/01/20 – AMBAC Insured
 
No Opt. Call
A1
 
2,903,250
 
 
1,150
 
Sacramento, California, Special Tax Bonds, North Natomas Community Facilities District 4, Series 2003C, 6.000%, 9/01/33
 
9/14 at 100.00
N/R
 
1,174,863
 
 
120
 
San Francisco Redevelopment Finance Authority, California, Tax Allocation Revenue Bonds, Mission Bay North Redevelopment Project, Series 2011C, 6.750%, 8/01/41
 
2/21 at 100.00
A–
 
135,413
 
     
San Francisco Redevelopment Financing Authority, California, Tax Allocation Revenue Bonds, Mission Bay South Redevelopment Project, Series 2011D:
           
 
125
 
7.000%, 8/01/33
 
2/21 at 100.00
BBB
 
142,329
 
 
155
 
7.000%, 8/01/41
 
2/21 at 100.00
BBB
 
174,471
 
 
2,695
 
San Jose Financing Authority, California, Lease Revenue Refunding Bonds, Civic Center Project, Series 2002B, 5.250%, 6/01/19 – AMBAC Insured
 
6/12 at 100.00
AA+
 
2,721,707
 
 
1,000
 
San Jose Redevelopment Agency, California, Housing Set-Aside Tax Allocation Bonds, Merged Area Redevelopment Project, Series 2010A-1, 5.500%, 8/01/35
 
8/20 at 100.00
A
 
1,023,970
 
 
1,135
 
San Jose Redevelopment Agency, California, Tax Allocation Bonds, Merged Area Redevelopment Project, Series 2006C, 5.000%, 8/01/25 – NPFG Insured
 
8/17 at 100.00
BBB
 
1,139,234
 
 
5,000
 
Santa Ana Community Redevelopment Agency, California, Tax Allocation Bonds, Merged Project Area, Series 2011A, 6.750%, 9/01/28
 
3/21 at 100.00
A
 
5,773,350
 
 
205
 
Signal Hill Redevelopment Agency, California, Project 1 Tax Allocation Bonds, Series 2011, 7.000%, 10/01/26
 
4/21 at 100.00
N/R
 
218,300
 
 
1,200
 
Turlock Public Financing Authority, California, Tax Allocation Revenue Bonds, Series 2011, 7.500%, 9/01/39
 
3/21 at 100.00
BBB+
 
1,332,912
 
 
1,000
 
Washington Unified School District, Yolo County, California, Certificates of Participation, Series 2007, 5.125%, 8/01/37 – AMBAC Insured
 
8/17 at 100.00
A
 
1,039,240
 
 
600
 
West Patterson Financing Authority, California, Special Tax Bonds, Community Facilities District 01-1, Refunding Series 2009A, 8.625%, 9/01/39
 
9/14 at 105.00
N/R
 
649,044
 
 
2,810
 
West Patterson Financing Authority, California, Special Tax Bonds, Community Facilities District 01-1, Series 2003B, 7.000%, 9/01/38
 
9/13 at 103.00
N/R
 
2,828,125
 
 
Nuveen Investments
 
49

 
 

 
 
   
Nuveen California Dividend Advantage Municipal Fund (continued)
NAC
 
Portfolio of Investments
February 29, 2012

 
Principal
     
Optional Call
       
 
Amount (000)
 
Description (1)
 
Provisions (2)
Ratings (3)
 
Value
 
     
Tax Obligation/Limited (continued)
           
$
2,000
 
West Patterson Financing Authority, California, Special Tax Bonds, Community Facilities District 01-1, Series 2004B, 6.000%, 9/01/39
 
9/13 at 102.00
N/R
$
1,802,100
 
 
1,350
 
West Patterson Financing Authority, California, Special Tax Bonds, Community Facilities District 2001-1, Series 2004A, 6.125%, 9/01/39
 
9/13 at 103.00
N/R
 
1,237,289
 
     
Yorba Linda Redevelopment Agency, Orange County, California, Tax Allocation Revenue Bonds, Yorba Linda Redevelopment Project, Subordinate Lien Series 2011A:
           
 
150
 
6.000%, 9/01/26
 
9/21 at 100.00
A–
 
166,413
 
 
210
 
6.500%, 9/01/32
 
9/21 at 100.00
A–
 
234,190
 
 
135,515
 
Total Tax Obligation/Limited
       
136,826,329
 
     
Transportation – 3.6% (2.5% of Total Investments)
           
 
1,430
 
Bay Area Toll Authority, California, Revenue Bonds, San Francisco Bay Area Toll Bridge, Series 2006F, 5.000%, 4/01/31 (UB)
 
4/16 at 100.00
AA
 
1,608,078
 
 
11,150
 
Foothill/Eastern Transportation Corridor Agency, California, Toll Road Revenue Refunding Bonds, Series 1999, 5.750%, 1/15/40
 
7/12 at 100.00
BBB–
 
10,959,112
 
 
120
 
Palm Springs Financing Authority, California, Palm Springs International Airport Revenue Bonds, Series 2006, 5.450%, 7/01/20 (Alternative Minimum Tax)
 
7/14 at 102.00
N/R
 
112,636
 
 
12,700
 
Total Transportation
       
12,679,826
 
     
U.S. Guaranteed – 13.0% (8.9% of Total Investments) (5)
           
 
4,500
 
California Department of Water Resources, Power Supply Revenue Bonds, Series 2002A, 5.125%, 5/01/18 (Pre-refunded 5/01/12)
 
5/12 at 101.00
Aaa
 
4,583,835
 
 
675
 
California Statewide Community Development Authority, Revenue Bonds, Thomas Jefferson School of Law, Series 2005A, 4.875%, 10/01/31 (Pre-refunded 10/01/15)
 
10/15 at 100.00
N/R (5)
 
753,395
 
 
3,250
 
Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed Bonds, Series 2003A-1, 6.250%, 6/01/33 (Pre-refunded 6/01/13)
 
6/13 at 100.00
Aaa
 
3,450,005
 
 
3,630
 
Imperial Irrigation District, California, Certificates of Participation, Electric System Revenue Bonds, Series 2003, 5.250%, 11/01/23 (Pre-refunded 11/01/13) – AGM Insured
 
11/13 at 100.00
AA– (5)
 
3,930,237
 
 
1,940
 
Lincoln, California, Special Tax Bonds, Lincoln Crossing Community Facilities District 03-1, Series 2003A, 6.500%, 9/01/25 (Pre-refunded 9/01/13)
 
9/13 at 102.00
N/R (5)
 
2,153,982
 
 
1,335
 
Lincoln, California, Special Tax Bonds, Lincoln Crossing Community Facilities District 03-1, Series 2004, 6.000%, 9/01/34 (Pre-refunded 9/01/13)
 
9/13 at 102.00
N/R (5)
 
1,472,251
 
 
10,845
 
Los Angeles Unified School District, California, General Obligation Bonds, Series 2002E, 5.000%, 7/01/19 (Pre-refunded 7/01/12) – NPFG Insured
 
7/12 at 100.00
AA– (5)
 
11,024,051
 
 
5,840
 
Orange County Water District, California, Revenue Certificates of Participation, Series 1999A, 5.375%, 8/15/29 (ETM)
 
8/12 at 100.00
N/R (5)
 
6,509,206
 
 
5,115
 
San Francisco City and County Public Utilities Commission, California, Water Revenue Bonds, Series 2002A, 5.000%, 11/01/18 (Pre-refunded 11/01/12) – NPFG Insured
 
11/12 at 100.00
AA– (5)
 
5,281,902
 
 
2,860
 
Tobacco Securitization Authority of Southern California, Tobacco Settlement Asset-Backed Bonds, San Diego County Tobacco Asset Securitization Corporation, Senior Series 2001A, 5.250%, 6/01/27 (Pre-refunded 6/01/12)
 
6/12 at 100.00
Aaa
 
2,897,466
 
 
600
 
University of California, General Revenue Bonds, Series 2003A, 5.125%, 5/15/17 (Pre-refunded 5/15/13) – AMBAC Insured (UB)
 
5/13 at 100.00
Aa1 (5)
 
635,274
 
 
2,500
 
Whittier, California, Health Facility Revenue Bonds, Presbyterian Intercommunity Hospital, Series 2002, 5.600%, 6/01/22 (Pre-refunded 6/01/12)
 
6/12 at 101.00
N/R (5)
 
2,560,025
 
 
43,090
 
Total U.S. Guaranteed
       
45,251,629
 
     
Utilities – 3.2% (2.2% of Total Investments)
           
 
3,775
 
Long Beach Bond Finance Authority, California, Natural Gas Purchase Revenue Bonds, Series 2007A, 5.000%, 11/15/35
 
No Opt. Call
A–
 
3,870,470
 
 
5,500
 
Los Angeles Department of Water and Power, California, Power System Revenue Bonds, Series 2005A-1, 5.000%, 7/01/31 – AGM Insured (UB)
 
7/15 at 100.00
AA–
 
5,867,565
 
 
1,270
 
Merced Irrigation District, California, Electric System Revenue Bonds, Series 2005, 5.125%, 9/01/31 – SYNCORA GTY Insured
 
9/15 at 100.00
N/R
 
1,263,028
 
 
10,545
 
Total Utilities
       
11,001,063
 
 
50
 
Nuveen Investments

 
 

 
 
 
Principal
     
Optional Call
       
 
Amount (000)
 
Description (1)
 
Provisions (2)
Ratings (3)
 
Value
 
     
Water and Sewer – 9.6% (6.6% of Total Investments)
           
$
875
 
Healdsburg Public Financing Authority, California, Wastewater Revenue Bonds, Series 2006, 5.000%, 4/01/36 – NPFG Insured
 
4/16 at 100.00
AA–
$
910,184
 
 
2,500
 
Indio Water Authority, California, Water Revenue Bonds, Series 2006, 5.000%, 4/01/31 – AMBAC Insured
 
4/16 at 100.00
A+
 
2,622,675
 
 
9,955
 
Los Angeles Department of Water and Power, California, Waterworks Revenue Bonds, Series 2011A, 5.250%, 7/01/39
 
1/21 at 100.00
AA
 
11,387,126
 
 
835
 
Marina Coast Water District, California, Enterprise Certificate of Participation, Series 2006, 5.000%, 6/01/31 – NPFG Insured
 
6/16 at 100.00
AA–
 
875,155
 
 
2,250
 
Sacramento County Sanitation District Financing Authority, California, Revenue Bonds, Series 2006, 5.000%, 12/01/31 – FGIC Insured
 
6/16 at 100.00
AA
 
2,447,663
 
 
11,000
 
San Diego Public Facilities Financing Authority, California, Sewerage Revenue Bonds, Refunding Series 2010A, 5.250%, 5/15/26
 
5/20 at 100.00
Aa3
 
13,232,560
 
 
2,000
 
West Basin Municipal Water District, California, Certificates of Participation, Refunding Series 2008B, 5.000%, 8/01/28 – AGC Insured
 
8/18 at 100.00
AA–
 
2,171,760
 
 
29,415
 
Total Water and Sewer
       
33,647,123
 
$
567,811
 
Total Investments (cost $484,363,905) – 146.2%
       
510,520,007
 
     
Floating Rate Obligations – (8.2)%
       
(28,545,000
     
Variable Rate Demand Preferred Shares, at Liquidation Value – (39.0)% (6)
       
(136,200,000
     
Other Assets Less Liabilities – 1.0%
       
3,427,835
 
     
Net Assets Applicable to Common Shares – 100%
     
$
349,202,842
 
 
(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 (not covered by the report of independent registered public accounting firm): 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 (not covered by the report of independent registered public accounting firm): Using the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investors Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies.
(4)
 
At or subsequent to the end of the reporting period, this security is non-income producing. Non-income producing security, in the case of a bond, generally denotes that the issuer has (1) defaulted on the payment of principal or interest, (2) is under the protection of the Federal Bankruptcy Court or (3) the Fund’s Adviser has concluded that the issue is not likely to meet its future interest payment obligations and has directed the Fund’s custodian to cease accruing additional income on the Fund’s records.
(5)
 
Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities, which ensure the timely payment of principal and interest. Certain bonds backed by U.S. Government or agency securities are regarded as having an implied rating equal to the rating of such securities.
(6)
 
Variable Rate Demand Preferred Shares, at Liquidation Value as a percentage of Total Investments is 26.7%.
N/R
 
Not rated.
WI/DD
 
Purchased on a when-issued or delayed delivery basis.
(ETM)
 
Escrowed to maturity.
(IF)
 
Inverse floating rate investment.
(UB)
 
Underlying bond of an inverse floating rate trust reflected as a financing transaction. See Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies, Inverse Floating Rate Securities for more information.
 
See accompanying notes to financial statements.
 
Nuveen Investments
 
51

 
 

 
 
   
Nuveen California Dividend Advantage Municipal Fund 2
NVX
 
Portfolio of Investments
February 29, 2012
 
 
Principal
     
Optional Call
       
 
Amount (000)
 
Description (1)
 
Provisions (2)
Ratings (3)
 
Value
 
     
Consumer Staples – 7.4% (5.1% of Total Investments)
           
$
535
 
California County Tobacco Securitization Agency, Tobacco Settlement Asset-Backed Bonds, Sonoma County Tobacco Securitization Corporation, Series 2005, 4.250%, 6/01/21
 
6/15 at 100.00
BB+
$
515,895
 
 
3,940
 
California County Tobacco Securitization Agency, Tobacco Settlement Asset-Backed Bonds, Stanislaus County Tobacco Funding Corporation, Series 2002A, 5.500%, 6/01/33
 
6/12 at 100.00
Baa1
 
3,713,726
 
     
Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed Bonds, Series 2007A-1:
           
 
7,540
 
5.750%, 6/01/47
 
6/17 at 100.00
B–
 
5,791,700
 
 
1,270
 
5.125%, 6/01/47
 
6/17 at 100.00
B–
 
879,246
 
 
8,660
 
Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed Bonds, Series 2007A-2, 0.000%, 6/01/37
 
6/22 at 100.00
BB–
 
6,046,672
 
 
21,945
 
Total Consumer Staples
       
16,947,239
 
     
Education and Civic Organizations – 9.3% (6.4% of Total Investments)
           
 
2,745
 
California Educational Facilities Authority, Revenue Bonds, University of Southern California, Tender Option Bond Trust 09-11B, 18.293%, 10/01/38 (IF) (4)
 
10/18 at 100.00
Aa1
 
3,927,354
 
     
California Educational Facilities Authority, Revenue Bonds, University of the Pacific, Series 2006:
           
 
125
 
5.000%, 11/01/21
 
11/15 at 100.00
A2
 
134,429
 
 
165
 
5.000%, 11/01/25
 
11/15 at 100.00
A2
 
175,136
 
 
2,250
 
California Educational Facilities Authority, Student Loan Revenue Bonds, Cal Loan Program, Series 2001A, 5.400%, 3/01/21 – NPFG Insured (Alternative Minimum Tax)
 
9/12 at 100.00
Baa2
 
2,252,610
 
 
2,500
 
California Municipal Finance Authority, Revenue Bonds, University of La Verne, Series 2010A, 6.250%, 6/01/40
 
6/20 at 100.00
Baa2
 
2,717,825
 
 
2,945
 
California State Public Works Board, Lease Revenue Bonds, University of California Regents, Tender Option Bond Trust 1065, 9.214%, 3/01/33 (IF)
 
3/18 at 100.00
Aa2
 
3,388,399
 
 
850
 
California Statewide Communities Development Authority, School Facility Revenue Bonds, Alliance College-Ready Public Schools, Series 2011A, 7.000%, 7/01/46
 
7/21 at 100.00
N/R
 
899,419
 
 
605
 
California Statewide Community Development Authority, Revenue Bonds, Notre Dame de Namur University, Series 2003, 6.500%, 10/01/23
 
10/13 at 100.00
N/R
 
605,762
 
 
3,000
 
Long Beach Bond Financing Authority, California, Lease Revenue Refunding Bonds, Long Beach Aquarium of the South Pacific, Series 2001, 5.250%, 11/01/30 – AMBAC Insured
 
5/12 at 101.00
BBB
 
3,011,280
 
 
2,680
 
University of California, General Revenue Bonds, Series 2003A, 5.000%, 5/15/33 – AMBAC Insured (UB)
 
5/13 at 100.00
Aa1
 
2,791,220
 
 
1,315
 
University of California, Limited Project Revenue Bonds, Series 2007D, 5.000%, 5/15/41 – FGIC Insured
 
5/16 at 101.00
Aa2
 
1,398,384
 
 
19,180
 
Total Education and Civic Organizations
       
21,301,818
 
     
Health Care – 25.1% (17.4% of Total Investments)
           
 
2,000
 
California Health Facilities Financing Authority, Revenue Bonds, Casa Colina Inc., Series 2001, 6.000%, 4/01/22
 
4/12 at 100.00
BBB
 
2,003,680
 
 
895
 
California Health Facilities Financing Authority, Revenue Bonds, Rady Children’s Hospital – San Diego, Series 2011, 5.250%, 8/15/41
 
8/21 at 100.00
A2
 
933,968
 
 
9,260
 
California Health Facilities Financing Authority, Revenue Bonds, Sutter Health, Series 2007A, 5.250%, 11/15/46 (UB)
 
11/16 at 100.00
AA–
 
9,712,629
 
 
4,215
 
California Municipal Financing Authority, Certificates of Participation, Community Hospitals of Central California, Series 2007, 5.250%, 2/01/27
 
2/17 at 100.00
BBB
 
4,310,090
 
 
2,520
 
California Statewide Communities Development Authority, Revenue Bonds, Adventist Health System West, Series 2005A, 5.000%, 3/01/35
 
3/15 at 100.00
A
 
2,558,228
 
 
2,225
 
California Statewide Communities Development Authority, Revenue Bonds, ValleyCare Health System, Series 2007A, 5.125%, 7/15/31
 
7/17 at 100.00
N/R
 
2,045,354
 
 
52
 
Nuveen Investments

 
 

 
 
 
Principal
     
Optional Call
       
 
Amount (000)
 
Description (1)
 
Provisions (2)
Ratings (3)
 
Value
 
     
Health Care (continued)
           
$
2,500
 
California Statewide Community Development Authority, Hospital Revenue Bonds, Monterey Peninsula Hospital, Series 2003B, 5.250%, 6/01/18 – AGM Insured
 
6/13 at 100.00
AA–
$
2,620,350
 
 
5,250
 
California Statewide Community Development Authority, Revenue Bonds, Daughters of Charity Health System, Series 2005A, 5.250%, 7/01/35
 
7/15 at 100.00
BBB
 
5,166,368
 
 
425
 
California Statewide Community Development Authority, Revenue Bonds, Kaiser Permanente System, Series 2001C, 5.250%, 8/01/31
 
8/16 at 100.00
A+
 
456,204
 
     
California Statewide Community Development Authority, Revenue Bonds, St. Joseph Health System, Trust 2554:
           
 
1,325
 
18.349%, 7/01/47 – AGM Insured (IF)
 
7/18 at 100.00
AA–
 
1,621,336
 
 
998
 
18.382%, 7/01/47 – AGM Insured (IF)
 
7/18 at 100.00
AA–
 
1,221,020
 
 
1,000
 
California Statewide Community Development Authority, Revenue Bonds, Sutter Health, Series 2004D, 5.050%, 8/15/38 – AGM Insured
 
8/18 at 100.00
AA–
 
1,050,240
 
     
California Statewide Community Development Authority, Revenue Bonds, Sutter Health, Series 2005A:
           
 
2,705
 
5.000%, 11/15/43
 
11/15 at 100.00
AA–
 
2,774,275
 
 
3,315
 
5.000%, 11/15/43 (UB)
 
11/15 at 100.00
AA–
 
3,399,897
 
 
2,000
 
Loma Linda, California, Hospital Revenue Bonds, Loma Linda University Medical Center, Series 2008A, 8.250%, 12/01/38
 
12/17 at 100.00
BBB
 
2,278,520
 
 
1,610
 
Madera County, California, Certificates of Participation, Children’s Hospital Central California, Series 2010, 5.375%, 3/15/36
 
3/20 at 100.00
A+
 
1,671,679
 
 
455
 
Oak Valley Hospital District, Stanislaus County, California, Revenue Bonds, Series 2010A, 6.500%, 11/01/29
 
11/20 at 100.00
BB+
 
456,979
 
 
4,800
 
Palomar Pomerado Health Care District, California, Certificates of Participation, Series 2010, 6.000%, 11/01/41
 
11/20 at 100.00
Baa3
 
4,936,656
 
 
5,785
 
Rancho Mirage Joint Powers Financing Authority, California, Revenue Bonds, Eisenhower Medical Center, Series 2007A, 5.000%, 7/01/38
 
7/17 at 100.00
Baa2
 
5,496,436
 
 
2,250
 
San Buenaventura, California, Revenue Bonds, Community Memorial Health System, Series 2011, 7.500%, 12/01/41
 
12/21 at 100.00
BB
 
2,537,010
 
 
55,533
 
Total Health Care
       
57,250,919
 
     
Housing/Multifamily – 6.1% (4.2% of Total Investments)
           
 
1,325
 
California Municipal Finance Authority, Mobile Home Park Revenue Bonds, Caritas Projects Series 2010A, 6.400%, 8/15/45
 
8/20 at 100.00
BBB
 
1,369,308
 
 
410
 
California Municipal Finance Authority, Mobile Home Park Revenue Bonds, Caritas Projects Series 2012A, 5.500%, 8/15/47 (WI/DD, Settling 3/13/12)
 
8/22 at 100.00
BBB
 
405,900
 
 
940
 
California Municipal Finance Authority, Mobile Home Park Revenue Bonds, Caritas Projects Series 2012B, 7.250%, 8/15/47 (WI/DD, Settling 3/13/12)
 
8/22 at 100.00
N/R
 
940,000
 
 
5,962
 
California Statewide Community Development Authority, Multifamily Housing Revenue Refunding Bonds, Claremont Village Apartments, Series 2001D, 5.500%, 6/01/31 (Mandatory put 6/01/16) (Alternative Minimum Tax)
 
6/13 at 100.00
AA+
 
6,093,641
 
 
205
 
Independent Cities Lease Finance Authority, California, Mobile Home Park Revenue Bonds, San Juan Mobile Estates, Series 2006B, 5.850%, 5/15/41
 
5/16 at 100.00
N/R
 
202,155
 
 
1,055
 
Rohnert Park Finance Authority, California, Senior Lien Revenue Bonds, Rancho Feliz Mobile Home Park, Series 2003A, 5.750%, 9/15/38
 
9/13 at 100.00
A+
 
1,064,558
 
 
700
 
Rohnert Park Finance Authority, California, Subordinate Lien Revenue Bonds, Rancho Feliz Mobile Home Park, Series 2003B, 6.625%, 9/15/38
 
9/13 at 100.00
N/R
 
708,001
 
 
3,045
 
Yucaipa Redevelopment Agency, California, Mobile Home Park Revenue Bonds, Rancho del Sol and Grandview, Series 2001A, 6.750%, 5/15/36
 
5/12 at 101.00
N/R
 
3,081,388
 
 
13,642
 
Total Housing/Multifamily
       
13,864,951
 
     
Housing/Single Family – 3.2% (2.2% of Total Investments)
           
 
1,490
 
California Housing Finance Agency, California, Home Mortgage Revenue Bonds, Series 2007G, 5.050%, 2/01/29 (Alternative Minimum Tax)
 
2/17 at 100.00
BBB
 
1,434,959
 
 
220
 
California Housing Finance Agency, Home Mortgage Revenue Bonds, Series 2006H, 5.750%, 8/01/30 –FGIC Insured (Alternative Minimum Tax)
 
2/16 at 100.00
BBB
 
220,150
 
 
Nuveen Investments
 
53

 
 

 
 
   
Nuveen California Dividend Advantage Municipal Fund 2 (continued)
NVX
 
Portfolio of Investments
February 29, 2012
 
 
Principal
     
Optional Call
       
 
Amount (000)
 
Description (1)
 
Provisions (2)
Ratings (3)
 
Value
 
     
Housing/Single Family (continued)
           
$
5,775
 
California Housing Finance Agency, Home Mortgage Revenue Bonds, Series 2006M, 4.650%, 8/01/31 (Alternative Minimum Tax)
 
2/16 at 100.00
BBB
$
5,293,423
 
 
375
 
California Rural Home Mortgage Finance Authority, Mortgage-Backed Securities Program Single Family Mortgage Revenue Bonds, Series 2001A, 5.650%, 12/01/31 (Alternative Minimum Tax)
 
6/12 at 101.00
A–
 
388,530
 
 
7,860
 
Total Housing/Single Family
       
7,337,062
 
     
Industrials – 0.3% (0.2% of Total Investments)
           
 
3,175
 
California Statewide Communities Development Authority, Revenue Bonds, EnerTech Regional Biosolids Project, Series 2007A, 5.500%, 12/01/33 (Alternative Minimum Tax) (5)
 
No Opt. Call
D
 
693,611
 
     
Long-Term Care – 0.7% (0.5% of Total Investments)
           
 
1,550
 
California Health Facilities Financing Authority, Cal-Mortgage Insured Revenue Bonds, Northern California Retired Officers Community Corporation – Paradise Valley Estates, Series 2002, 5.125%, 1/01/22
 
1/13 at 100.00
A–
 
1,576,443
 
     
Tax Obligation/General – 24.3% (16.9% of Total Investments)
           
 
10,000
 
California State, General Obligation Bonds, Series 2006CD, 4.600%, 12/01/32 (Alternative Minimum Tax)
 
12/15 at 100.00
AA
 
10,104,800
 
 
13,850
 
California State, General Obligation Bonds, Various Purpose Series 2009, 6.000%, 4/01/38
 
No Opt. Call
A1
 
16,067,939
 
     
California State, General Obligation Bonds, Various Purpose Series 2010:
           
 
2,000
 
6.000%, 3/01/33
 
3/20 at 100.00
A1
 
2,398,200
 
 
1,000
 
5.250%, 11/01/40
 
11/20 at 100.00
A1
 
1,091,170
 
     
California State, General Obligation Bonds, Various Purpose Series 2011:
           
 
2,300
 
5.000%, 9/01/41
 
No Opt. Call
A1
 
2,458,792
 
 
4,000
 
5.000%, 10/01/41
 
10/21 at 100.00
A1
 
4,278,000
 
 
3,615
 
Colton Joint Unified School District, San Bernardino County, California, General Obligation Bonds, Series 2002A, 5.500%, 8/01/22 – FGIC Insured
 
8/12 at 102.00
Aa3
 
3,761,986
 
 
1,285
 
Los Angeles Unified School District, Los Angeles County, California, General Obligation Bonds, Series 2009D, 5.000%, 7/01/27
 
7/19 at 100.00
Aa2
 
1,477,300
 
 
2,000
 
Puerto Rico, General Obligation and Public Improvement Bonds, Series 2002A, 5.500%, 7/01/20 – NPFG Insured
 
No Opt. Call
Baa1
 
2,275,400
 
 
355
 
Roseville Joint Union High School District, Placer County, California, General Obligation Bonds, Series 2006B, 5.000%, 8/01/27 – FGIC Insured
 
8/15 at 100.00
AA–
 
392,424
 
 
1,000
 
Southwestern Community College District, San Diego County, California, General Obligation Bonds, Election of 2008, Series 2011C, 5.250%, 8/01/36
 
8/21 at 100.00
Aa2
 
1,136,390
 
     
Yosemite Community College District, California, General Obligation Bonds, Capital Appreciation, Election 2004, Series 2010D:
           
 
6,480
 
0.000%, 8/01/31
 
No Opt. Call
Aa2
 
2,552,407
 
 
17,510
 
0.000%, 8/01/42
 
No Opt. Call
Aa2
 
5,850,441
 
 
1,600
 
Yuba Community College District, California, General Obligation Bonds, Election 2006 Series 2011C, 5.250%, 8/01/47
 
8/21 at 100.00
Aa2
 
1,757,120
 
 
66,995
 
Total Tax Obligation/General
       
55,602,369
 
     
Tax Obligation/Limited – 20.6% (14.3% 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
 
661,395
 
 
385
 
5.800%, 9/01/35
 
9/14 at 102.00
N/R
 
387,876
 
 
1,190
 
Borrego Water District, California, Community Facilities District 2007-1 Montesoro, Special Tax Bonds, Series 2007, 5.750%, 8/01/25 (5)
 
8/17 at 102.00
N/R
 
380,836
 
 
4,900
 
California State Public Works Board, Lease Revenue Bonds, Department of Corrections, Series 2003C, 5.500%, 6/01/16
 
12/13 at 100.00
A2
 
5,177,830
 
 
1,245
 
California, Economic Recovery Revenue Bonds, Series 2004A, 5.000%, 7/01/15
 
7/14 at 100.00
Aa3
 
1,368,504
 
 
1,200
 
Capistrano Unified School District, Orange County, California, Special Tax Bonds, Community Facilities District 90-2 – Talega, Series 2003, 6.000%, 9/01/33
 
9/13 at 100.00
N/R
 
1,215,972
 

54
 
Nuveen Investments

 
 

 
 
 
Principal
     
Optional Call
       
 
Amount (000)
 
Description (1)
 
Provisions (2)
Ratings (3)
 
Value
 
     
Tax Obligation/Limited (continued)
           
$
435
 
Capistrano Unified School District, Orange County, California, Special Tax Bonds, Community Facilities District, Series 2005, 5.000%, 9/01/24 – FGIC Insured
 
9/15 at 100.00
BBB
$
446,519
 
 
700
 
Dinuba Redevelopment Agency, California, Tax Allocation Bonds, Merged City of Dinuba Redevelopment Project and Dinuba Redevelopment Project 2, As Amended, Series 2003, 5.000%, 9/01/33 – NPFG Insured
 
9/13 at 102.00
A–
 
704,802
 
 
960
 
Fontana, California, Redevelopment Agency, Jurupa Hills Redevelopment Project, Tax Allocation Refunding Bonds, 1997 Series A, 5.500%, 10/01/27
 
4/12 at 100.00
A–
 
960,672
 
 
750
 
Fontana, California, Special Tax Bonds, Sierra Community Facilities District 22, Series 2004, 6.000%, 9/01/34
 
9/14 at 100.00
N/R
 
757,268
 
 
1,785
 
Hawthorne Community Redevelopment Agency, California, Project Area 2 Tax Allocation Bonds, Series 2006, 5.250%, 9/01/36 – SYNCORA GTY Insured
 
9/16 at 100.00
A–
 
1,815,381
 
 
1,800
 
Hesperia Unified School District, San Bernardino County, California, Certificates of Participation, Capital Improvement, Series 2007, 5.000%, 2/01/41 – AMBAC Insured
 
2/17 at 100.00
A–
 
1,782,000
 
 
870
 
Inglewood Redevelopment Agency, California, Tax Allocation Bonds, Merged Redevelopment Project, Subordinate Lien Series 2007A-1, 5.000%, 5/01/23 – AMBAC Insured
 
5/17 at 100.00
BBB+
 
873,480
 
     
Irvine, California, Unified School District, Community Facilities District Special Tax Bonds, Series 2006A:
           
 
205
 
5.000%, 9/01/26
 
9/16 at 100.00
N/R
 
208,719
 
 
470
 
5.125%, 9/01/36
 
9/16 at 100.00
N/R
 
470,653
 
 
2,000
 
Lake Elsinore Public Finance Authority, California, Local Agency Revenue Refunding Bonds, Series 2003H, 6.000%, 10/01/20
 
10/13 at 102.00
N/R
 
2,080,180
 
 
415
 
Lammersville School District, San Joaquin County, California, Community Facilities District 2002, Mountain House Special Tax Bonds, Series 2006, 5.125%, 9/01/35
 
9/16 at 100.00
N/R
 
387,357
 
 
1,265
 
Lee Lake Water District, Riverside County, California, Special Tax Bonds, Community Facilities District 1 of Sycamore Creek, Series 2003, 6.500%, 9/01/24
 
9/13 at 102.00
N/R
 
1,320,749
 
 
800
 
Los Angeles Community Redevelopment Agency, California, Lease Revenue Bonds, Manchester Social Services Project, Series 2005, 5.000%, 9/01/37 – AMBAC Insured
 
9/15 at 100.00
A1
 
809,600
 
 
750
 
Lynwood Redevelopment Agency, California, Project A Revenue Bonds, Subordinate Lien Series 2011A, 7.000%, 9/01/31
 
9/21 at 100.00
A–
 
869,160
 
 
475
 
National City Community Redevelopment Agency, California, Tax Allocation Revenue Bonds, National City Redevelopment Project Area, Series 2011, 6.500%, 8/01/24
 
8/21 at 100.00
A–
 
550,169
 
 
485
 
North Natomas Community Facilities District 4, Sacramento, California, Special Tax Bonds, Series 2006D, 5.000%, 9/01/33
 
9/14 at 102.00
N/R
 
454,057
 
 
175
 
Novato Redevelopment Agency, California, Tax Allocation Bonds, Hamilton Field Redevelopment Project, Series 2011, 6.750%, 9/01/40
 
9/21 at 100.00
A–
 
198,655
 
 
2,000
 
Orange County, California, Special Tax Bonds, Community Facilities District 02-1 of Ladera Ranch, Series 2003A, 5.550%, 8/15/33
 
8/12 at 100.00
N/R
 
2,005,540
 
     
Perris Union High School District Financing Authority, Riverside County, California, Revenue Bonds, Series 2011:
           
 
165
 
6.000%, 9/01/33
 
No Opt. Call
N/R
 
170,288
 
 
360
 
6.125%, 9/01/41
 
No Opt. Call
N/R
 
371,376
 
 
3,085
 
Pittsburg Redevelopment Agency, California, Tax Allocation Bonds, Los Medanos Community Development Project, Refunding Series 2008A, 6.500%, 9/01/28
 
9/18 at 100.00
BBB
 
3,200,626
 
 
550
 
Rancho Santa Fe CSD Financing Authority, California, Revenue Bonds, Superior Lien Series 2011A, 5.750%, 9/01/30
 
9/21 at 100.00
BBB+
 
593,423
 
 
385
 
Rialto Redevelopment Agency, California, Tax Allocation Bonds, Merged Project Area, Series 2005A, 5.000%, 9/01/35 – SYNCORA GTY Insured
 
9/15 at 100.00
A–
 
380,022
 
 
100
 
Riverside County Redevelopment Agency, California, Tax Allocation Revenue Bonds, Jurupa Valley Project Area Series 2011-B, 6.500%, 10/01/25
 
10/21 at 100.00
A–
 
110,748
 
 
475
 
Roseville, California, Certificates of Participation, Public Facilities, Series 2003A, 5.000%, 8/01/25 – AMBAC Insured
 
8/13 at 100.00
AA–
 
485,075
 
 
Nuveen Investments
 
55

 
 

 
 
   
Nuveen California Dividend Advantage Municipal Fund 2 (continued)
NVX
 
Portfolio of Investments
February 29, 2012
 
 
Principal
     
Optional Call
       
 
Amount (000)
 
Description (1)
 
Provisions (2)
Ratings (3)
 
Value
 
     
Tax Obligation/Limited (continued)
           
$
700
 
Sacramento, California, Special Tax Bonds, North Natomas Community Facilities District 4, Series 2003C, 6.000%, 9/01/33
 
9/14 at 100.00
N/R
$
715,134
 
     
San Buenaventura Redevelopment Agency, California, Merged Project Areas Tax Allocation Bonds, Series 2008:
           
 
1,000
 
7.750%, 8/01/28
 
8/16 at 102.00
A
 
1,139,540
 
 
1,325
 
8.000%, 8/01/38
 
8/16 at 102.00
A
 
1,505,863
 
 
990
 
San Diego, California, Special Tax Community Facilities District 4 Black Mountain Ranch Villages Bonds, Series 2008A, 6.000%, 9/01/37
 
3/12 at 103.00
N/R
 
1,022,789
 
 
80
 
San Francisco Redevelopment Finance Authority, California, Tax Allocation Revenue Bonds, Mission Bay North Redevelopment Project, Series 2011C, 6.750%, 8/01/41
 
3/12 at 103.00
A–
 
90,275
 
     
San Francisco Redevelopment Financing Authority, California, Tax Allocation Revenue Bonds, Mission Bay South Redevelopment Project, Series 2011D:
           
 
85
 
7.000%, 8/01/33
 
2/21 at 100.00
BBB
 
96,784
 
 
105
 
7.000%, 8/01/41
 
2/21 at 100.00
BBB
 
118,190
 
 
765
 
San Jose Redevelopment Agency, California, Tax Allocation Bonds, Merged Area Redevelopment Project, Series 2006C, 5.000%, 8/01/25 – NPFG Insured
 
8/17 at 100.00
BBB
 
767,853
 
 
995
 
San Jose Redevelopment Agency, California, Tax Allocation Bonds, Merged Area Redevelopment Project, Series 2006D, 5.000%, 8/01/23 – AMBAC Insured
 
8/17 at 100.00
BBB
 
1,006,253
 
 
1,530
 
San Marcos Public Facilities Authority, California, Tax Allocation Bonds, Project Areas 2 and 3, Series 2005C, 5.000%, 8/01/35 – AMBAC Insured
 
8/15 at 100.00
A–
 
1,510,187
 
 
140
 
Signal Hill Redevelopment Agency, California, Project 1 Tax Allocation Bonds, Series 2011, 7.000%, 10/01/26
 
4/21 at 100.00
N/R
 
149,083
 
 
415
 
West Patterson Financing Authority, California, Special Tax Bonds, Community Facilities District 01-1, Refunding Series 2009A, 8.625%, 9/01/39
 
9/14 at 105.00
N/R
 
448,922
 
 
1,930
 
West Patterson Financing Authority, California, Special Tax Bonds, Community Facilities District 01-1, Series 2003B, 6.750%, 9/01/30
 
9/13 at 103.00
N/R
 
1,947,293
 
 
500
 
West Patterson Financing Authority, California, Special Tax Bonds, Community Facilities District 01-1, Series 2004B, 6.000%, 9/01/39
 
9/13 at 102.00
N/R
 
450,525
 
 
850
 
West Patterson Financing Authority, California, Special Tax Bonds, Community Facilities District 2001-1, Series 2004A, 6.125%, 9/01/39
 
9/13 at 103.00
N/R
 
779,034
 
 
3,715
 
Western Placer Unified School District, Placer County, California, Certificates of Participation, Series 2008, 5.000%, 8/01/47 – AGC Insured
 
8/18 at 100.00
AA–
 
3,822,698
 
 
240
 
Yorba Linda Redevelopment Agency, Orange County, California, Tax Allocation Revenue Bonds, Yorba Linda Redevelopment Project, Subordinate Lien Series 2011A, 6.500%, 9/01/32
 
9/21 at 100.00
A–
 
267,646
 
 
46,395
 
Total Tax Obligation/Limited
       
47,037,001
 
     
Transportation – 8.6% (6.0% of Total Investments)
           
 
3,000
 
Bay Area Governments Association, California, BART SFO Extension, Airport Premium Fare Revenue Bonds, Series 2002A, 5.000%, 8/01/32 – AMBAC Insured
 
8/12 at 100.00
N/R
 
2,848,950
 
 
1,930
 
Bay Area Toll Authority, California, Revenue Bonds, San Francisco Bay Area Toll Bridge, Series 2006F, 5.000%, 4/01/31 (UB)
 
4/16 at 100.00
AA
 
2,170,343
 
 
1,430
 
Bay Area Toll Authority, California, Revenue Bonds, San Francisco Bay Area Toll Bridge, Series 2008, Trust 3211, 13.491%, 10/01/32 (IF)
 
4/18 at 100.00
AA
 
1,861,803
 
 
7,000
 
Foothill/Eastern Transportation Corridor Agency, California, Toll Road Revenue Refunding Bonds, Series 1999, 5.875%, 1/15/27
 
1/14 at 101.00
BBB–
 
7,079,100
 
 
5,585
 
Port of Oakland, California, Revenue Bonds, Series 2002N, 5.000%, 11/01/16 – NPFG Insured (Alternative Minimum Tax)
 
11/12 at 100.00
A
 
5,706,139
 
 
18,945
 
Total Transportation
       
19,666,335
 
 
56
 
Nuveen Investments

 
 

 
 
 
Principal
     
Optional Call
       
 
Amount (000)
 
Description (1)
 
Provisions (2)
Ratings (3)
 
Value
 
     
U.S. Guaranteed – 19.7% (13.7% of Total Investments) (6)
           
$
2,000
 
California Department of Water Resources, Power Supply Revenue Bonds, Series 2002A, 5.125%, 5/01/18 (Pre-refunded 5/01/12)
 
5/12 at 101.00
Aaa
$
2,037,260
 
 
425
 
California Statewide Community Development Authority, Revenue Bonds, Thomas Jefferson School of Law, Series 2005A, 4.875%, 10/01/31 (Pre-refunded 10/01/15)
 
10/15 at 100.00
N/R (6)
 
474,360
 
 
860
 
California, Economic Recovery Revenue Bonds, Series 2004A, 5.000%, 7/01/15 (Pre-refunded 7/01/14)
 
7/14 at 100.00
Aaa
 
955,314
 
     
Contra Costa County Community College District, California, General Obligation Bonds, Series 2002:
           
 
3,005
 
5.000%, 8/01/21 (Pre-refunded 8/01/12) – FGIC Insured
 
8/12 at 100.00
Aa1 (6)
 
3,066,723
 
 
3,300
 
5.000%, 8/01/22 (Pre-refunded 8/01/12) – FGIC Insured
 
8/12 at 100.00
Aa1 (6)
 
3,367,782
 
 
4,000
 
Daly City Housing Development Finance Agency, California, Mobile Home Park Revenue Bonds, Franciscan Mobile Home Park Project, Series 2002A, 5.850%, 12/15/32 (Pre-refunded 12/15/13)
 
12/13 at 102.00
N/R (6)
 
4,469,360
 
 
2,005
 
Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed Bonds, Series 2003A-1, 6.250%, 6/01/33 (Pre-refunded 6/01/13)
 
6/13 at 100.00
Aaa
 
2,128,388
 
 
1,170
 
Lincoln, California, Special Tax Bonds, Lincoln Crossing Community Facilities District 03-1, Series 2003A, 6.500%, 9/01/25 (Pre-refunded 9/01/13)
 
9/13 at 102.00
N/R (6)
 
1,299,051
 
 
885
 
Lincoln, California, Special Tax Bonds, Lincoln Crossing Community Facilities District 03-1, Series 2004, 6.000%, 9/01/34 (Pre-refunded 9/01/13)
 
9/13 at 102.00
N/R (6)
 
975,987
 
 
9,510
 
Los Angeles Unified School District, California, General Obligation Bonds, Series 2002E, 5.000%, 7/01/19 (Pre-refunded 7/01/12) – NPFG Insured
 
7/12 at 100.00
AA– (6)
 
9,667,010
 
 
2,000
 
Puerto Rico Public Finance Corporation, Commonwealth Appropriation Bonds, Series 2002E, 6.000%, 8/01/26 (ETM)
 
No Opt. Call
AA+ (6)
 
2,884,280
 
     
San Francisco Airports Commission, California, Revenue Bonds, San Francisco International Airport, Second Series 2003, Issue 29A:
           
 
2,430
 
5.250%, 5/01/18 (Pre-refunded 5/01/13) – FGIC Insured (Alternative Minimum Tax)
 
5/13 at 100.00
A+ (6)
 
2,573,443
 
 
2,555
 
5.250%, 5/01/19 (Pre-refunded 5/01/13) – FGIC Insured (Alternative Minimum Tax)
 
5/13 at 100.00
A+ (6)
 
2,705,822
 
 
1,000
 
San Francisco Airports Commission, California, Revenue Bonds, San Francisco International Airport, Second Series 2003, Issue 29B, 5.125%, 5/01/17 (Pre-refunded 5/01/13) – FGIC Insured
 
5/13 at 100.00
A+ (6)
 
1,057,570
 
 
2,000
 
San Francisco Airports Commission, California, Revenue Refunding Bonds, San Francisco International Airport, Second Series 2002, Issue 28A, 5.250%, 5/01/17 (Pre-refunded 5/01/12) – NPFG Insured (Alternative Minimum Tax)
 
5/12 at 100.00
A+ (6)
 
2,015,720
 
 
825
 
San Mateo Union High School District, San Mateo County, California, Certificates of Participation, Phase 1, Series 2007A, 5.000%, 12/15/30 (Pre-refunded 12/15/17) – AMBAC Insured
 
12/17 at 100.00
AA– (6)
 
1,016,070
 
 
2,800
 
Tobacco Securitization Authority of Southern California, Tobacco Settlement Asset-Backed Bonds, San Diego County Tobacco Asset Securitization Corporation, Senior Series 2001A, 5.500%, 6/01/36 (Pre-refunded 6/01/12)
 
6/12 at 100.00
Aaa
 
2,838,472
 
 
1,500
 
Whittier, California, Health Facility Revenue Bonds, Presbyterian Intercommunity Hospital, Series 2002, 5.600%, 6/01/22 (Pre-refunded 6/01/12)
 
6/12 at 101.00
N/R (6)
 
1,536,015
 
 
42,270
 
Total U.S. Guaranteed
       
45,068,627
 
     
Utilities – 8.6% (5.9% of Total Investments)
           
 
5,000
 
Anaheim Public Finance Authority, California, Second Lien Electric Distribution Revenue Bonds, Series 2004, 5.250%, 10/01/21 – NPFG Insured
 
10/14 at 100.00
A+
 
5,332,400
 
 
2,355
 
Long Beach Bond Finance Authority, California, Natural Gas Purchase Revenue Bonds, Series 2007A, 5.000%, 11/15/35
 
No Opt. Call
A–
 
2,414,558
 
 
1,000
 
Los Angeles Department of Water and Power, California, Power System Revenue Bonds, Series 2003A-2, 5.000%, 7/01/23 – NPFG Insured
 
7/13 at 100.00
AA–
 
1,059,060
 
 
500
 
Los Angeles Department of Water and Power, California, Power System Revenue Bonds, Series 2005A-1, 5.000%, 7/01/31 – AGM Insured (UB)
 
7/15 at 100.00
AA–
 
533,415
 
     
Merced Irrigation District, California, Electric System Revenue Bonds, Series 2005:
           
 
790
 
5.125%, 9/01/31 – SYNCORA GTY Insured
 
9/15 at 100.00
N/R
 
785,663
 
 
1,500
 
5.250%, 9/01/36 – SYNCORA GTY Insured
 
9/15 at 100.00
N/R
 
1,485,705
 
 
2,000
 
Santa Clara, California, Subordinate Electric Revenue Bonds, Series 2003A, 5.250%, 7/01/20 – NPFG Insured
 
7/13 at 100.00
A1
 
2,113,420
 
 
Nuveen Investments
 
57

 
 

 
 
   
Nuveen California Dividend Advantage Municipal Fund 2 (continued)
NVX
 
Portfolio of Investments
February 29, 2012
 
 
Principal
     
Optional Call
       
 
Amount (000)
 
Description (1)
 
Provisions (2)
Ratings (3)
 
Value
 
     
Utilities (continued)
           
$
1,500
 
Southern California Public Power Authority, California, Milford Wind Corridor Phase I Revenue Bonds, Series 2010-1, 5.000%, 7/01/28
 
No Opt. Call
AA–
$
1,724,505
 
 
4,000
 
Southern California Public Power Authority, Natural Gas Project 1 Revenue Bonds, Series 2007A, 5.000%, 11/01/33
 
No Opt. Call
Baa1
 
4,140,680
 
 
18,645
 
Total Utilities
       
19,589,406
 
     
Water and Sewer – 10.4% (7.2% of Total Investments)
           
 
1,400
 
Castaic Lake Water Agency, California, Certificates of Participation, Series 2006C, 5.000%, 8/01/36 – NPFG Insured
 
8/16 at 100.00
AA–
 
1,450,162
 
 
545
 
Healdsburg Public Financing Authority, California, Wastewater Revenue Bonds, Series 2006, 5.000%, 4/01/36 – NPFG Insured
 
4/16 at 100.00
AA–
 
566,914
 
 
1,160
 
Metropolitan Water District of Southern California, Waterworks Revenue Bonds, Tender Option Bond Trust 09-8B, 18.162%, 7/01/35 (IF) (4)
 
7/19 at 100.00
AAA
 
1,749,141
 
 
1,500
 
Orange County Water District, California, Revenue Certificates of Participation, Tender Option Bond Trust 11782-1, 17.835%, 2/15/35 (IF)
 
8/19 at 100.00
AAA
 
2,092,620
 
 
750
 
Sacramento County Sanitation District Financing Authority, California, Revenue Bonds, Series 2006, 5.000%, 12/01/31 – FGIC Insured
 
6/16 at 100.00
AA
 
815,888
 
 
1,700
 
San Buenaventura, California, Wastewater Revenue Certificates of Participation, Series 2004, 5.000%, 3/01/24 – NPFG Insured
 
3/14 at 100.00
AA
 
1,784,575
 
 
4,785
 
San Diego Public Facilities Financing Authority, California, Subordinate Lien Water Revenue Bonds, Series 2002, 5.000%, 8/01/21 – NPFG Insured
 
8/12 at 100.00
Aa3
 
4,865,197
 
 
10,000
 
San Francisco City and County Public Utilities Commission, California, Clean Water Revenue Refunding Bonds, Series 2003A, 5.250%, 10/01/20 – NPFG Insured
 
4/13 at 100.00
AA–
 
10,464,100
 
 
21,840
 
Total Water and Sewer
       
23,788,597
 
$
337,975
 
Total Investments (cost $311,649,957) – 144.3%
       
329,724,378
 
     
Floating Rate Obligations – (5.0)%
       
(11,390,000
     
MuniFund Term Preferred Shares, at Liquidation Value – (42.8)% (7)
       
(97,846,300
     
Other Assets Less Liabilities – 3.5%
       
7,985,919
 
     
Net Assets Applicable to Common Shares – 100%
     
$
228,473,997
 
 
(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 (not covered by the report of independent registered public accounting firm): 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 (not covered by the report of independent registered public accounting firm): Using the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investors Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies.
(4)
 
Investment, or portion of investment, has been pledged to collaterize the net payment obligations for investments in inverse floating rate transactions.
(5)
 
At or subsequent to the end of the reporting period, this security is non-income producing. Non-income producing security, in the case of a bond, generally denotes that the issuer has (1) defaulted on the payment of principal or interest, (2) is under the protection of the Federal Bankruptcy Court or (3) the Fund’s Adviser has concluded that the issue is not likely to meet its future interest payment obligations and has directed the Fund’s custodian to cease accruing additional income on the Fund’s records.
(6)
 
Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities, which ensure the timely payment of principal and interest. Certain bonds backed by U.S. Government or agency securities are regarded as having an implied rating equal to the rating of such securities.
(7)
 
MuniFund Term Preferred Shares, at Liquidation Value as a percentage of Total Investments is 29.7%.
N/R
 
Not rated.
(ETM)
 
Escrowed to maturity.
WI/DD
 
Purchased on a when-issued or delayed delivery basis.
(IF)
 
Inverse floating rate investment.
(UB)
 
Underlying bond of an inverse floating rate trust reflected as a financing transaction. See Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies, Inverse Floating Rate Securities for more information.
 
See accompanying notes to financial statements.
 
58
 
Nuveen Investments

 
 

 
 
   
Nuveen California Dividend Advantage Municipal Fund 3
NZH
 
Portfolio of Investments
   
February 29, 2012
 
 
Principal
     
Optional Call
       
 
Amount (000)
 
Description (1)
 
Provisions (2)
Ratings (3)
 
Value
 
     
Consumer Staples – 8.4% (5.7% of Total Investments)
           
$
870
 
California County Tobacco Securitization Agency, Tobacco Settlement Asset-Backed Bonds, Sonoma County Tobacco Securitization Corporation, Series 2005, 4.250%, 6/01/21
 
6/15 at 100.00
BB+
$
838,932
 
     
Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed Bonds, Series 2007A-1:
           
 
19,485
 
5.750%, 6/01/47
 
6/17 at 100.00
B–
 
14,967,013
 
 
6,325
 
5.125%, 6/01/47
 
6/17 at 100.00
B–
 
4,378,924
 
 
11,265
 
Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed Bonds, Series 2007A-2, 0.000%, 6/01/37
 
6/22 at 100.00
B–
 
7,865,561
 
 
37,945
 
Total Consumer Staples
       
28,050,430
 
     
Education and Civic Organizations – 6.4% (4.4% of Total Investments)
           
 
290
 
California Educational Facilities Authority, Revenue Bonds, University of Redlands, Series 2005A, 5.000%, 10/01/35
 
10/15 at 100.00
A3
 
296,142
 
 
2,160
 
California Educational Facilities Authority, Revenue Bonds, University of San Francisco, Series 2011, 6.125%, 10/01/36
 
10/21 at 100.00
A3
 
2,567,030
 
     
California Educational Facilities Authority, Revenue Bonds, University of the Pacific, Series 2006:
           
 
200
 
5.000%, 11/01/21
 
11/15 at 100.00
A2
 
215,086
 
 
270
 
5.000%, 11/01/25
 
11/15 at 100.00
A2
 
286,586
 
 
1,000
 
5.000%, 11/01/30
 
11/15 at 100.00
A2
 
1,043,680
 
 
1,500
 
California Educational Facilities Authority, Student Loan Revenue Bonds, Cal Loan Program, Series 2001A, 5.400%, 3/01/21 – NPFG Insured (Alternative Minimum Tax)
 
9/12 at 100.00
Baa2
 
1,501,740
 
 
6,000
 
California State University, Systemwide Revenue Bonds, Series 2005C, 5.000%, 11/01/27 – NPFG Insured
 
11/15 at 100.00
Aa2
 
6,405,000
 
 
1,300
 
California Statewide Communities Development Authority, School Facility Revenue Bonds, Alliance College-Ready Public Schools, Series 2011A, 7.000%, 7/01/46
 
7/21 at 100.00
N/R
 
1,375,582
 
 
605
 
California Statewide Community Development Authority, Revenue Bonds, Notre Dame de Namur University, Series 2003, 6.500%, 10/01/23
 
10/13 at 100.00
N/R
 
605,762
 
 
3,100
 
San Diego County, California, Certificates of Participation, Burnham Institute, Series 2006, 5.000%, 9/01/34
 
9/15 at 102.00
Baa3
 
3,114,787
 
 
4,000
 
University of California, General Revenue Bonds, Series 2003A, 5.000%,
 
5/13 at 100.00
Aa1
 
4,211,840
 
         5/15/23 – AMBAC Insured (UB)            
 
20,425
 
Total Education and Civic Organizations
       
21,623,235
 
     
Health Care – 32.1% (22.1% of Total Investments)
           
     
California Health Facilities Financing Authority, Revenue Bonds, Casa Colina Inc., Series 2001:
           
 
4,000
 
6.000%, 4/01/22
 
4/12 at 100.00
BBB
 
4,007,360
 
 
2,000
 
6.125%, 4/01/32
 
4/12 at 100.00
BBB
 
2,002,440
 
 
1,445
 
California Health Facilities Financing Authority, Revenue Bonds, Rady Children’s Hospital – San Diego, Series 2011, 5.250%, 8/15/41
 
8/21 at 100.00
A2
 
1,507,915
 
 
1,765
 
California Health Facilities Financing Authority, Revenue Bonds, St. Joseph Health System, Series 2009A, 5.750%, 7/01/39
 
7/19 at 100.00
AA–
 
1,956,697
 
 
3,530
 
California Health Facilities Financing Authority, Revenue Bonds, Sutter Health, Series 2011B, 6.000%, 8/15/42
 
8/20 at 100.00
AA–
 
4,085,975
 
 
3,735
 
California Health Facilities Financing Authority, Revenue Bonds, Sutter Health, Tender Option Bonds Trust 3765, 18.979%, 5/15/39 (IF) (4)
 
11/16 at 100.00
AA–
 
4,464,744
 
 
2,520
 
California Statewide Communities Development Authority, Revenue Bonds, Adventist Health System West, Series 2005A, 5.000%, 3/01/35
 
3/15 at 100.00
A
 
2,558,228
 
 
1,650
 
California Statewide Communities Development Authority, Revenue Bonds, Adventist Health System West, Series 2007B, 5.000%, 3/01/37 – AGC Insured
 
3/18 at 100.00
AA–
 
1,728,540
 
 
8,875
 
California Statewide Communities Development Authority, Revenue Bonds, Sutter Health, Series 2011A, 6.000%, 8/15/42
 
8/20 at 100.00
AA–
 
10,272,813
 
 
Nuveen Investments
 
59

 
 

 
 
   
Nuveen California Dividend Advantage Municipal Fund 3 (continued)
NZH
 
Portfolio of Investments
February 29, 2012
 
 
Principal
     
Optional Call
       
 
Amount (000)
 
Description (1)
 
Provisions (2)
Ratings (3)
 
Value
 
     
Health Care (continued)
           
$
3,435
 
California Statewide Communities Development Authority, Revenue Bonds, ValleyCare Health System, Series 2007A, 5.125%, 7/15/31
 
7/17 at 100.00
N/R
$
3,157,658
 
 
6,525
 
California Statewide Community Development Authority, Health Facility Revenue Refunding Bonds, Memorial Health Services, Series 2003A, 6.000%, 10/01/12
 
No Opt. Call
AA–
 
6,736,345
 
 
6,450
 
California Statewide Community Development Authority, Hospital Revenue Bonds, Monterey Peninsula Hospital, Series 2003B, 5.250%, 6/01/18 – AGM Insured
 
6/13 at 100.00
AA–
 
6,760,503
 
 
4,500
 
California Statewide Community Development Authority, Insured Health Facility Revenue Bonds, Catholic Healthcare West, Series 2008K, 5.500%, 7/01/41 – AGC Insured
 
7/17 at 100.00
AA–
 
4,775,805
 
 
7,665
 
California Statewide Community Development Authority, Insured Mortgage Hospital Revenue Bonds, Mission Community Hospital, Series 2001, 5.375%, 11/01/21
 
5/12 at 100.00
A–
 
7,676,421
 
 
2,000
 
California Statewide Community Development Authority, Revenue Bonds, Daughters of Charity Health System, Series 2005A, 5.250%, 7/01/35
 
7/15 at 100.00
BBB
 
1,968,140
 
 
645
 
California Statewide Community Development Authority, Revenue Bonds, Kaiser Permanente System, Series 2001C, 5.250%, 8/01/31
 
8/16 at 100.00
A+
 
692,356
 
 
3,860
 
California Statewide Community Development Authority, Revenue Bonds, St. Joseph Health System, Series 2007A, 5.750%, 7/01/47 – FGIC Insured
 
7/18 at 100.00
AA–
 
4,144,829
 
 
1,594
 
California Statewide Community Development Authority, Revenue Bonds, St. Joseph Health System, Trust 2554, 18.382%, 7/01/47 – AGM Insured (IF)
 
7/18 at 100.00
AA–
 
1,950,571
 
 
5,600
 
California Statewide Community Development Authority, Revenue Bonds, Sutter Health, Tender Option Bond Trust 3102, 18.374%, 11/15/46 (IF)
 
11/16 at 100.00
AA–
 
6,694,464
 
 
2,950
 
Loma Linda, California, Hospital Revenue Bonds, Loma Linda University Medical Center, Series 2008A, 8.250%, 12/01/38
 
12/17 at 100.00
BBB
 
3,360,817
 
 
4,000
 
Marysville, California, Revenue Bonds, The Fremont-Rideout Health Group, Series 2011, 5.250%, 1/01/42
 
1/21 at 100.00
A
 
4,200,160
 
 
2,330
 
Newport Beach, California, Revenue Bonds, Hoag Memorial Hospital Presbyterian, Series 2011A, 6.000%, 12/01/40
 
12/21 at 100.00
AA
 
2,781,158
 
 
695
 
Oak Valley Hospital District, Stanislaus County, California, Revenue Bonds, Series 2010A, 6.500%, 11/01/29
 
11/20 at 100.00
BB+
 
698,023
 
 
7,650
 
Palomar Pomerado Health Care District, California, Certificates of Participation, Series 2010, 6.000%, 11/01/41
 
11/20 at 100.00
Baa3
 
7,867,796
 
     
Rancho Mirage Joint Powers Financing Authority, California, Revenue Bonds, Eisenhower Medical Center, Series 2007A:
           
 
5,790
 
5.000%, 7/01/38
 
7/17 at 100.00
Baa2
 
5,501,195
 
 
2,500
 
5.000%, 7/01/47
 
7/17 at 100.00
Baa2
 
2,361,950
 
 
3,400
 
San Buenaventura, California, Revenue Bonds, Community Memorial Health System, Series 2011, 7.500%, 12/01/41
 
12/21 at 100.00
BB
 
3,833,704
 
 
101,109
 
Total Health Care
       
107,746,607
 
     
Housing/Multifamily – 3.4% (2.4% of Total Investments)
           
 
2,030
 
California Municipal Finance Authority, Mobile Home Park Revenue Bonds, Caritas Projects Series 2010A, 6.400%, 8/15/45
 
8/20 at 100.00
BBB
 
2,097,883
 
 
2,020
 
California Municipal Finance Authority, Mobile Home Park Revenue Bonds, Caritas Projects Series 2012A, 5.500%, 8/15/47 (WI/DD, Settling 3/13/12)
 
8/22 at 100.00
BBB
 
1,999,800
 
 
325
 
Independent Cities Lease Finance Authority, California, Mobile Home Park Revenue Bonds, San Juan Mobile Estates, Series 2006B, 5.850%, 5/15/41
 
5/16 at 100.00
N/R
 
320,489
 
 
1,735
 
Rohnert Park Finance Authority, California, Senior Lien Revenue Bonds, Rancho Feliz Mobile Home Park, Series 2003A, 5.750%, 9/15/38
 
9/13 at 100.00
A+
 
1,750,719
 
 
1,125
 
Rohnert Park Finance Authority, California, Subordinate Lien Revenue Bonds, Rancho Feliz Mobile Home Park, Series 2003B, 6.625%, 9/15/38
 
9/13 at 100.00
N/R
 
1,137,859
 
     
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)
 
8/12 at 101.00
AA+
 
1,258,513
 
 
2,880
 
5.450%, 2/20/43 (Alternative Minimum Tax)
 
8/12 at 101.00
AA+
 
2,912,227
 
 
11,365
 
Total Housing/Multifamily
       
11,477,490
 
 
60
 
Nuveen Investments

 
 

 
 
 
Principal
     
Optional Call
       
 
Amount (000)
 
Description (1)
 
Provisions (2)
Ratings (3)
 
Value
 
     
Housing/Single Family – 3.4% (2.3% of Total Investments)
           
$
370
 
California Housing Finance Agency, Home Mortgage Revenue Bonds, Series 2006H, 5.750%, 8/01/30 – FGIC Insured (Alternative Minimum Tax)
 
2/16 at 100.00
BBB
$
370,252
 
     
California Housing Finance Agency, Home Mortgage Revenue Bonds, Tender Option Bond Trust 3206:
           
 
10,180
 
7.909%, 8/01/25 (Alternative Minimum Tax) (IF)
 
2/16 at 100.00
BBB
 
8,058,081
 
 
3,805
 
8.286%, 8/01/29 (Alternative Minimum Tax) (IF)
 
2/17 at 100.00
BBB
 
2,928,899
 
 
14,355
 
Total Housing/Single Family
       
11,357,232
 
     
Industrials – 1.9% (1.3% of Total Investments)
           
 
5,000
 
California Pollution Control Financing Authority, Solid Waste Disposal Revenue Bonds, Waste Management Inc., Series 2005C, 5.125%, 11/01/23 (Alternative Minimum Tax)
 
11/15 at 101.00
BBB
 
5,214,100
 
 
5,205
 
California Statewide Communities Development Authority, Revenue Bonds, EnerTech Regional Biosolids Project, Series 2007A, 5.500%, 12/01/33 (Alternative Minimum Tax) (5)
 
No Opt. Call
D
 
1,137,084
 
 
10,205
 
Total Industrials
       
6,351,184
 
     
Long-Term Care – 1.9% (1.3% of Total Investments)
           
 
2,450
 
California Health Facilities Financing Authority, Cal-Mortgage Insured Revenue Bonds, Northern California Retired Officers Community Corporation – Paradise Valley Estates, Series 2002, 5.125%, 1/01/22
 
1/13 at 100.00
A–
 
2,491,797
 
     
California Health Facilities Financing Authority, Insured Senior Living Revenue Bonds, Aldersly Project, Series 2002A:
           
 
1,500
 
5.125%, 3/01/22
 
3/13 at 100.00
A–
 
1,516,800
 
 
1,315
 
5.250%, 3/01/32
 
3/13 at 100.00
A–
 
1,325,546
 
 
1,000
 
California Municipal Finance Authority, Revenue Bonds, Harbor Regional Center Project, Series 2009, 8.000%, 11/01/29
 
11/19 at 100.00
Baa1
 
1,144,550
 
 
6,265
 
Total Long-Term Care
       
6,478,693
 
     
Tax Obligation/General – 13.3% (9.2% of Total Investments)
           
     
California State, General Obligation Bonds, Various Purpose Series 2009:
           
 
3,500
 
5.500%, 11/01/39
 
11/19 at 100.00
A1
 
3,896,270
 
 
3,040
 
6.000%, 11/01/39
 
11/19 at 100.00
A1
 
3,552,878
 
     
California State, General Obligation Bonds, Various Purpose Series 2010:
           
 
1,960
 
5.500%, 3/01/40
 
3/20 at 100.00
A1
 
2,175,992
 
 
1,000
 
5.250%, 11/01/40
 
11/20 at 100.00
A1
 
1,091,170
 
 
7,000
 
California State, General Obligation Bonds, Various Purpose Series 2011, 5.000%, 10/01/41
 
10/21 at 100.00
A1
 
7,486,500
 
 
15
 
California, General Obligation Veterans Welfare Bonds, Series 2001BZ, 5.350%, 12/01/21 – NPFG Insured (Alternative Minimum Tax)
 
6/12 at 100.00
AA
 
15,024
 
 
18,500
 
Poway Unified School District, San Diego County, California, School Facilities Improvement District 2007-1 General Obligation Bonds, Series 2011B, 0.000%, 8/01/46
 
No Opt. Call
Aa2
 
2,923,925
 
 
870
 
Puerto Rico, General Obligation and Public Improvement Bonds, Series 2001, 5.000%, 7/01/24 – AGM Insured
 
7/12 at 100.00
AA–
 
871,105
 
 
575
 
Roseville Joint Union High School District, Placer County, California, General Obligation Bonds, Series 2006B, 5.000%, 8/01/27 – FGIC Insured
 
8/15 at 100.00
AA–
 
635,617
 
 
4,000
 
San Diego Unified School District, San Diego County, California, General Obligation Bonds, Election of 1998, Series 2002D, 5.250%, 7/01/21 – FGIC Insured
 
7/12 at 101.00
Aa2
 
4,104,240
 
 
2,715
 
San Jose-Evergreen Community College District, Santa Clara County, California, General Obligation Bonds, Series 2005A, 5.000%, 9/01/25 – NPFG Insured
 
9/15 at 100.00
Aa1
 
3,062,330
 
 
2,115
 
San Mateo Union High School District, San Mateo County, California, General Obligation Bonds, Election 2010 Series 2011A, 5.000%, 9/01/42
 
9/21 at 100.00
Aa1
 
2,345,281
 
 
5,530
 
Stockton Unified School District, San Joaquin County, California, General Obligation Bonds, Election 2008 Series 2011D, 0.000%, 8/01/50 – AGM Insured
 
8/37 at 100.00
AA–
 
2,564,703
 
     
Yosemite Community College District, California, General Obligation Bonds, Capital Appreciation, Election 2004, Series 2010D:
           
 
15,000
 
0.000%, 8/01/31
 
No Opt. Call
Aa2
 
5,908,350
 
 
12,520
 
0.000%, 8/01/42
 
No Opt. Call
Aa2
 
4,183,182
 
 
78,340
 
Total Tax Obligation/General
       
44,816,567
 
 
Nuveen Investments
 
61

 
 

 
 
   
Nuveen California Dividend Advantage Municipal Fund 3 (continued)
NZH
 
Portfolio of Investments
February 29, 2012
 
 
Principal
     
Optional Call
       
 
Amount (000)
 
Description (1)
 
Provisions (2)
Ratings (3)
 
Value
 
     
Tax Obligation/Limited – 43.4% (29.9% of Total Investments)
           
$
1,960
 
Borrego Water District, California, Community Facilities District 2007-1 Montesoro, Special Tax Bonds, Series 2007, 5.750%, 8/01/25 (5)
 
8/17 at 102.00
N/R
$
627,259
 
 
8,210
 
California State Public Works Board, Lease Revenue Bonds, Department of Corrections, Series 2003C, 5.500%, 6/01/16
 
12/13 at 100.00
A2
 
8,675,507
 
 
4,000
 
California State Public Works Board, Lease Revenue Bonds, Department of General Services, Series 2002B, 5.000%, 3/01/27 – AMBAC Insured
 
3/12 at 100.00
A2
 
4,003,920
 
 
4,510
 
California State Public Works Board, Lease Revenue Bonds, Department of Mental Health, Hospital Addition, Series 2001A, 5.000%, 12/01/26 – AMBAC Insured
 
12/12 at 101.00
A2
 
4,604,845
 
 
1,000
 
California State Public Works Board, Lease Revenue Bonds, Various Capital Projects, Series 2009G-1, 5.750%, 10/01/30
 
10/19 at 100.00
A2
 
1,135,590
 
 
2,260
 
California State Public Works Board, Lease Revenue Bonds, Various Capital Projects, Series 2010A-1, 5.750%, 3/01/30
 
3/20 at 100.00
A2
 
2,536,059
 
     
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
 
1,788,483
 
 
550
 
6.000%, 9/01/33
 
9/13 at 100.00
N/R
 
557,321
 
 
715
 
Capistrano Unified School District, Orange County, California, Special Tax Bonds, Community Facilities District, Series 2005, 5.000%, 9/01/24 – FGIC Insured
 
9/15 at 100.00
BBB
 
733,933
 
 
2,160
 
Chino Redevelopment Agency, California, Merged Chino Redevelopment Project Area Tax Allocation Bonds, Series 2006, 5.000%, 9/01/38 – AMBAC Insured
 
9/16 at 101.00
A–
 
2,087,683
 
 
1,050
 
Dinuba Redevelopment Agency, California, Tax Allocation Bonds, Merged City of Dinuba Redevelopment Project and Dinuba Redevelopment Project 2, As Amended, Series 2003, 5.000%, 9/01/33 – NPFG Insured
 
9/13 at 102.00
A–
 
1,057,203
 
 
1,445
 
Fontana, California, Redevelopment Agency, Jurupa Hills Redevelopment Project, Tax Allocation Refunding Bonds, 1997 Series A, 5.500%, 10/01/27
 
4/12 at 100.00
A–
 
1,446,012
 
 
1,125
 
Fontana, California, Special Tax Bonds, Sierra Community Facilities District 22, Series 2004, 6.000%, 9/01/34
 
9/14 at 100.00
N/R
 
1,135,901
 
 
3,500
 
Fremont, California, Special Tax Bonds, Community Facilities District 1, Pacific Commons, Series 2005, 6.300%, 9/01/31
 
3/12 at 100.00
N/R
 
3,514,105
 
 
1,000
 
Fullerton Community Facilities District 1, California, Special Tax Bonds, Amerige Heights, Series 2002, 6.100%, 9/01/22
 
9/12 at 100.00
N/R
 
1,011,710
 
 
1,310
 
Inglewood Redevelopment Agency, California, Tax Allocation Bonds, Merged Redevelopment Project, Subordinate Lien Series 2007A-1, 5.000%, 5/01/23 – AMBAC Insured
 
5/17 at 100.00
BBB+
 
1,315,240
 
     
Irvine, California, Unified School District, Community Facilities District Special Tax Bonds, Series 2006A:
           
 
330
 
5.000%, 9/01/26
 
9/16 at 100.00
N/R
 
335,986
 
 
760
 
5.125%, 9/01/36
 
9/16 at 100.00
N/R
 
761,056
 
 
3,000
 
Lake Elsinore Public Finance Authority, California, Local Agency Revenue Refunding Bonds, Series 2003H, 6.000%, 10/01/20
 
10/13 at 102.00
N/R
 
3,120,270
 
 
685
 
Lammersville School District, San Joaquin County, California, Community Facilities District 2002, Mountain House Special Tax Bonds, Series 2006, 5.125%, 9/01/35
 
9/16 at 100.00
N/R
 
639,372
 
 
5,250
 
Lammersville School District, San Joaquin County, California, Special Tax Bonds, Community Facilities District of Mountain House, Series 2002, 6.300%, 9/01/24
 
9/12 at 101.00
N/R
 
5,336,678
 
 
2,000
 
Lee Lake Water District, Riverside County, California, Special Tax Bonds, Community Facilities District 1 of Sycamore Creek, Series 2003, 6.500%, 9/01/24
 
9/13 at 102.00
N/R
 
2,088,140
 
 
1,000
 
Lindsay Redevelopment Agency, California, Project 1 Tax Allocation Bonds, Series 2007, 5.000%, 8/01/37 – RAAI Insured
 
8/17 at 100.00
BBB+
 
948,300
 
 
5,425
 
Lodi, California, Certificates of Participation, Public Improvement Financing Project, Series 2002, 5.000%, 10/01/26 – NPFG Insured
 
10/12 at 100.00
A
 
5,475,887
 
 
1,310
 
Los Angeles Community Redevelopment Agency, California, Lease Revenue Bonds, Manchester Social Services Project, Series 2005, 5.000%, 9/01/37 – AMBAC Insured
 
9/15 at 100.00
A1
 
1,325,720
 
 
62
 
Nuveen Investments

 
 

 
 
 
Principal
     
Optional Call
       
 
Amount (000)
 
Description (1)
 
Provisions (2)
Ratings (3)
 
Value
 
     
Tax Obligation/Limited (continued)
           
$
1,675
 
Moreno Valley Unified School District, Riverside County, California, Certificates of Participation, Series 2005, 5.000%, 3/01/26 – AGM Insured
 
3/14 at 100.00
AA–
$
1,783,775
 
 
725
 
National City Community Redevelopment Agency, California, Tax Allocation Revenue Bonds, National City Redevelopment Project Area, Series 2011, 6.500%, 8/01/24
 
8/21 at 100.00
A–
 
839,731
 
     
North Natomas Community Facilities District 4, Sacramento, California, Special Tax Bonds, Series 2006D:
           
 
535
 
5.000%, 9/01/26
 
9/14 at 102.00
N/R
 
529,559
 
 
245
 
5.000%, 9/01/33
 
9/14 at 102.00
N/R
 
229,369
 
 
270
 
Novato Redevelopment Agency, California, Tax Allocation Bonds, Hamilton Field Redevelopment Project, Series 2011, 6.750%, 9/01/40
 
9/21 at 100.00
A–
 
306,496
 
 
3,000
 
Oakland Redevelopment Agency, California, Subordinate Lien Tax Allocation Bonds, Central District Redevelopment Project, Series 2003, 5.500%,
 
3/13 at 100.00
A–
 
3,105,000
 
         9/01/19 – FGIC Insured            
 
4,520
 
Ontario Redevelopment Financing Authority, California, Lease Revenue Bonds, Capital Projects, Series 2001, 5.000%, 8/01/24 – AMBAC Insured
 
8/12 at 100.50
AA–
 
4,571,844
 
 
2,000
 
Orange County, California, Special Tax Bonds, Community Facilities District 02-1 of Ladera Ranch, Series 2003A, 5.550%, 8/15/33
 
8/12 at 100.00
N/R
 
2,005,540
 
 
11,165
 
Palm Desert Financing Authority, California, Tax Allocation Revenue Refunding Bonds, Project Area 1, Series 2002, 5.100%, 4/01/30 – NPFG Insured
 
4/12 at 102.00
BBB
 
10,957,666
 
     
Perris Union High School District Financing Authority, Riverside County, California, Revenue Bonds, Series 2011:
           
 
245
 
6.000%, 9/01/33
 
No Opt. Call
N/R
 
252,852
 
 
540
 
6.125%, 9/01/41
 
No Opt. Call
N/R
 
557,064
 
 
3,000
 
Pico Rivera Water Authority, California, Revenue Bonds, Series 2001A, 6.250%, 12/01/32
 
6/12 at 102.00
N/R
 
3,032,340
 
 
2,185
 
Pittsburg Redevelopment Agency, California, Tax Allocation Bonds, Los Medanos Community Development Project, Refunding Series 2008A, 6.500%, 9/01/28
 
9/18 at 100.00
BBB
 
2,266,894
 
 
3,250
 
Pomona Public Financing Authority, California, Revenue Refunding Bonds, Merged Redevelopment Projects, Series 2001AD, 5.000%, 2/01/27 – NPFG Insured
 
8/12 at 100.00
BBB
 
3,206,190
 
 
1,000
 
Poway Unified School District, San Diego County, California, Special Tax Bonds, Community Facilities District 14 Del Sur, Series 2006, 5.125%, 9/01/26
 
9/16 at 100.00
N/R
 
997,460
 
 
6,000
 
Puerto Rico Highway and Transportation Authority, Highway Revenue Bonds, Series 2007N, 5.250%, 7/01/39 – FGIC Insured
 
No Opt. Call
Baa1
 
6,346,800
 
 
865
 
Rancho Santa Fe CSD Financing Authority, California, Revenue Bonds, Superior Lien Series 2011A, 5.750%, 9/01/30
 
9/21 at 100.00
BBB+
 
933,292
 
 
625
 
Rialto Redevelopment Agency, California, Tax Allocation Bonds, Merged Project Area, Series 2005A, 5.000%, 9/01/35 – SYNCORA GTY Insured
 
9/15 at 100.00
A–
 
616,919
 
 
155
 
Riverside County Redevelopment Agency, California, Tax Allocation Bonds, Jurupa Valley Project Area, Series 2011-B, 6.500%, 10/01/25
 
10/21 at 100.00
A–
 
171,659
 
 
3,375
 
Riverside County Redevelopment Agency, California, Interstate 215 Corridor Redevelopment Project Area Tax Allocation Bonds, Series 2010E, 6.500%, 10/01/40
 
10/20 at 100.00
A–
 
3,687,863
 
 
780
 
Roseville, California, Certificates of Participation, Public Facilities, Series 2003A, 5.000%, 8/01/25 – AMBAC Insured
 
8/13 at 100.00
AA–
 
796,544
 
 
1,145
 
Sacramento, California, Special Tax Bonds, North Natomas Community Facilities District 4, Series 2003C, 6.000%, 9/01/33
 
9/14 at 100.00
N/R
 
1,169,755
 
 
14,505
 
San Diego Redevelopment Agency, California, Subordinate Lien Tax Allocation Bonds, Centre City Project, Series 2001A, 5.000%, 9/01/26 – AGM Insured
 
9/12 at 100.50
AA–
 
14,679,349
 
 
2,300
 
San Francisco Bay Area Rapid Transit District, California, Sales Tax Revenue Bonds, Series 2001, 5.000%, 7/01/26 – AMBAC Insured
 
7/12 at 100.00
AA+
 
2,307,406
 
 
125
 
San Francisco Redevelopment Finance Authority, California, Tax Allocation Revenue Bonds, Mission Bay North Redevelopment Project, Series 2011C, 6.750%, 8/01/41
 
2/21 at 100.00
A–
 
141,055
 
 
Nuveen Investments
 
63

 
 

 
 
   
Nuveen California Dividend Advantage Municipal Fund 3 (continued)
NZH
 
Portfolio of Investments
February 29, 2012
 
 
Principal
     
Optional Call
       
 
Amount (000)
 
Description (1)
 
Provisions (2)
Ratings (3)
 
Value
 
     
Tax Obligation/Limited (continued)
           
     
San Francisco Redevelopment Financing Authority, California, Tax Allocation Revenue Bonds, Mission Bay South Redevelopment Project, Series 2011D:
           
$
125
 
7.000%, 8/01/33
 
2/21 at 100.00
BBB
$
142,329
 
 
160
 
7.000%, 8/01/41
 
2/21 at 100.00
BBB
 
180,099
 
 
1,160
 
San Jose Redevelopment Agency, California, Tax Allocation Bonds, Merged Area Redevelopment Project, Series 2006C, 5.000%, 8/01/25 – NPFG Insured
 
8/17 at 100.00
BBB
 
1,164,327
 
 
1,500
 
San Jose Redevelopment Agency, California, Tax Allocation Bonds, Merged Area Redevelopment Project, Series 2006D, 5.000%, 8/01/23 – AMBAC Insured
 
8/17 at 100.00
BBB
 
1,516,965
 
 
215
 
Signal Hill Redevelopment Agency, California, Project 1 Tax Allocation Bonds, Series 2011, 7.000%, 10/01/26
 
4/21 at 100.00
N/R
 
228,949
 
 
8,710
 
South Orange County Public Financing Authority, California, Special Tax Revenue Bonds, Ladera Ranch, Series 2005A, 5.000%, 8/15/32 – AMBAC Insured
 
8/15 at 100.00
BBB+
 
8,784,122
 
 
1,500
 
Stockton Public Financing Authority, California, Lease Revenue Bonds, Series 2004, 5.250%, 9/01/34 – FGIC Insured
 
9/14 at 100.00
BBB
 
1,206,000
 
 
1,165
 
Temecula Redevelopment Agency, California, Redevelopment Project 1 Tax Allocation Housing Bonds Series 2011A, 7.000%, 8/01/39
 
8/21 at 100.00
A
 
1,358,821
 
 
600
 
West Patterson Financing Authority, California, Special Tax Bonds, Community Facilities District 01-1, Refunding Series 2009A, 8.625%, 9/01/39
 
9/14 at 105.00
N/R
 
649,044
 
 
2,810
 
West Patterson Financing Authority, California, Special Tax Bonds, Community Facilities District 01-1, Series 2003B, 7.000%, 9/01/38
 
9/13 at 103.00
N/R
 
2,828,125
 
 
2,000
 
West Patterson Financing Authority, California, Special Tax Bonds, Community Facilities District 01-1, Series 2004B, 6.000%, 9/01/39
 
9/13 at 102.00
N/R
 
1,802,100
 
 
1,375
 
West Patterson Financing Authority, California, Special Tax Bonds, Community Facilities District 2001-1, Series 2004A, 6.125%, 9/01/39
 
9/13 at 103.00
N/R
 
1,260,201
 
 
370
 
Yorba Linda Redevelopment Agency, Orange County, California, Tax Allocation Revenue Bonds, Yorba Linda Redevelopment Project, Subordinate Lien Series 2011A, 6.500%, 9/01/32
 
9/21 at 100.00
A–
 
412,620
 
 
2,500
 
Yucaipa-Calimesa Joint Unified School District, San Bernardino County, California, General Obligation Refunding Bonds, Series 2001A, 5.000%, 10/01/26 – NPFG Insured
 
4/12 at 100.00
A2
 
2,501,975
 
 
144,725
 
Total Tax Obligation/Limited
       
145,790,279
 
     
Transportation – 4.1% (2.8% of Total Investments)
           
 
1,690
 
Bay Area Toll Authority, California, Revenue Bonds, San Francisco Bay Area Toll Bridge, Series 2006F, 5.000%, 4/01/31 (UB)
 
4/16 at 100.00
AA
 
1,900,456
 
 
11,750
 
Foothill/Eastern Transportation Corridor Agency, California, Toll Road Revenue Refunding Bonds, Series 1999, 5.875%, 1/15/28
 
1/14 at 101.00
BBB–
 
11,964,673
 
 
13,440
 
Total Transportation
       
13,865,129
 
     
U.S. Guaranteed – 16.4% (11.3% of Total Investments) (6)
           
 
4,000
 
Beaumont Financing Authority, California, Local Agency Revenue Bonds, Series 2002A, 6.750%, 9/01/25 (Pre-refunded 9/01/12)
 
9/12 at 102.00
N/R (6)
 
4,212,080
 
 
7,510
 
California County Tobacco Securitization Agency, Tobacco Settlement Asset-Backed Bonds, Merced County Tobacco Funding Corporation, Series 2002A, 5.500%, 6/01/33 (Pre-refunded 6/01/12)
 
6/12 at 100.00
Baa3 (6)
 
7,613,187
 
     
California Department of Water Resources, Power Supply Revenue Bonds, Series 2002A:
           
 
3,500
 
5.375%, 5/01/17 (Pre-refunded 5/01/12) – SYNCORA GTY Insured
 
5/12 at 101.00
Aaa
 
3,566,710
 
 
2,000
 
5.125%, 5/01/18 (Pre-refunded 5/01/12)
 
5/12 at 101.00
Aaa
 
2,037,260
 
 
680
 
California Statewide Community Development Authority, Revenue Bonds, Thomas Jefferson School of Law, Series 2005A, 4.875%, 10/01/31 (Pre-refunded 10/01/15)
 
10/15 at 100.00
N/R (6)
 
758,975
 
 
3,000
 
Contra Costa County Community College District, California, General Obligation Bonds, Series 2002, 5.000%, 8/01/23 (Pre-refunded 8/01/12) – FGIC Insured
 
8/12 at 100.00
Aa1 (6)
 
3,061,620
 
 
2,000
 
Daly City Housing Development Finance Agency, California, Mobile Home Park Revenue Bonds, Franciscan Mobile Home Park Project, Series 2002A, 5.800%, 12/15/25 (Pre-refunded 12/15/13)
 
12/13 at 102.00
N/R (6)
 
2,232,880
 
 
64
 
Nuveen Investments

 
 

 
 
 
Principal
     
Optional Call
       
 
Amount (000)
 
Description (1)
 
Provisions (2)
Ratings (3)
 
Value
 
     
U.S. Guaranteed (6) (continued)
           
$
3,815
 
Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed Bonds, Series 2003A-1, 6.250%, 6/01/33 (Pre-refunded 6/01/13)
 
6/13 at 100.00
Aaa
$
4,049,775
 
 
1,940
 
Lincoln, California, Special Tax Bonds, Lincoln Crossing Community Facilities District 03-1, Series 2003A, 6.500%, 9/01/25 (Pre-refunded 9/01/13)
 
9/13 at 102.00
N/R (6)
 
2,153,982
 
 
1,335
 
Lincoln, California, Special Tax Bonds, Lincoln Crossing Community Facilities District 03-1, Series 2004, 6.000%, 9/01/34 (Pre-refunded 9/01/13)
 
9/13 at 102.00
N/R (6)
 
1,472,251
 
 
5,500
 
Puerto Rico Highway and Transportation Authority, Highway Revenue Bonds, Series 2002D, 5.375%, 7/01/36 (Pre-refunded 7/01/12)
 
7/12 at 100.00
AA+ (6)
 
5,597,020
 
     
San Francisco Airports Commission, California, Revenue Bonds, San Francisco International Airport, Second Series 2003, Issue 29B:
           
 
4,110
 
5.125%, 5/01/17 (Pre-refunded 5/01/13) – FGIC Insured
 
5/13 at 100.00
A+ (6)
 
4,346,613
 
 
5,140
 
5.125%, 5/01/19 (Pre-refunded 5/01/13) – FGIC Insured
 
5/13 at 100.00
A+ (6)
 
5,435,910
 
 
1,345
 
San Mateo Union High School District, San Mateo County, California, Certificates of Participation, Phase 1, Series 2007A, 5.000%, 12/15/30 (Pre-refunded 12/15/17) – AMBAC Insured
 
12/17 at 100.00
AA– (6)
 
1,656,502
 
 
4,200
 
Tobacco Securitization Authority of Southern California, Tobacco Settlement Asset-Backed Bonds, San Diego County Tobacco Asset Securitization Corporation, Senior Series 2001A, 5.500%, 6/01/36 (Pre-refunded 6/01/12)
 
6/12 at 100.00
Aaa
 
4,257,708
 
 
2,500
 
Whittier, California, Health Facility Revenue Bonds, Presbyterian Intercommunity Hospital, Series 2002, 5.600%, 6/01/22 (Pre-refunded 6/01/12)
 
6/12 at 101.00
N/R (6)
 
2,560,025
 
 
52,575
 
Total U.S. Guaranteed
       
55,012,498
 
     
Utilities – 4.4% (3.0% of Total Investments)
           
 
3,815
 
Long Beach Bond Finance Authority, California, Natural Gas Purchase Revenue Bonds, Series 2007A, 5.000%, 11/15/35
 
No Opt. Call
A–
 
3,911,481
 
     
Merced Irrigation District, California, Electric System Revenue Bonds, Series 2005:
           
 
2,000
 
5.000%, 9/01/26 – SYNCORA GTY Insured
 
9/15 at 100.00
N/R
 
2,029,500
 
 
1,285
 
5.125%, 9/01/31 – SYNCORA GTY Insured
 
9/15 at 100.00
N/R
 
1,277,945
 
 
5,000
 
Merced Irrigation District, California, Revenue Certificates of Participation, Electric System Project, Series 2003, 5.700%, 9/01/36
 
9/13 at 102.00
Baa3
 
5,023,600
 
 
2,500
 
Salinas Valley Solid Waste Authority, California, Revenue Bonds, Series 2002, 5.125%, 8/01/22 – AMBAC Insured (Alternative Minimum Tax)
 
8/12 at 100.00
A+
 
2,509,575
 
 
14,600
 
Total Utilities
       
14,752,101
 
     
Water and Sewer – 6.2% (4.3% of Total Investments)
           
 
1,070
 
Burbank, California, Wastewater System Revenue Bonds, Series 2004A, 5.000%, 6/01/22 – AMBAC Insured
 
6/14 at 100.00
AA+
 
1,134,714
 
 
3,000
 
East Valley Water District Financing Authority, California, Refunding Revenue Bonds, Series 2010, 5.000%, 10/01/40
 
10/20 at 100.00
AA–
 
3,239,910
 
 
1,125
 
Fortuna Public Finance Authority, California, Water Revenue Bonds, Series 2006, 5.000%, 10/01/36 – AGM Insured
 
10/16 at 100.00
AA–
 
1,178,663
 
 
890
 
Healdsburg Public Financing Authority, California, Wastewater Revenue Bonds, Series 2006, 5.000%, 4/01/36 – NPFG Insured
 
4/16 at 100.00
AA–
 
925,787
 
 
850
 
Marina Coast Water District, California, Enterprise Certificate of Participation, Series 2006, 5.000%, 6/01/31 – NPFG Insured
 
6/16 at 100.00
AA–
 
890,877
 
 
1,000
 
San Buenaventura, California, Wastewater Revenue Certificates of Participation, Series 2004, 5.000%, 3/01/24 – NPFG Insured
 
3/14 at 100.00
AA
 
1,049,750
 
 
Nuveen Investments
 
65

 
 

 
 
   
Nuveen California Dividend Advantage Municipal Fund 3 (continued)
NZH
 
Portfolio of Investments
February 29, 2012

 
Principal
     
Optional Call
       
 
Amount (000)
 
Description (1)
 
Provisions (2)
Ratings (3)
 
Value
 
     
Water and Sewer (continued)
           
     
San Diego Public Facilities Financing Authority, California, Subordinate Lien Water Revenue Bonds, Series 2002:
           
$
2,500
 
5.000%, 8/01/23 – NPFG Insured
 
8/12 at 100.00
Aa3
$
2,540,725
 
 
6,260
 
5.000%, 8/01/24 – NPFG Insured
 
8/12 at 100.00
Aa3
 
6,355,402
 
 
3,315
 
San Francisco City and County Public Utilities Commission, California, Clean Water Revenue Refunding Bonds, Series 2003A, 5.250%, 10/01/18 – NPFG Insured
 
4/13 at 100.00
AA–
 
3,468,849
 
 
20,010
 
Total Water and Sewer
       
20,784,677
 
$
525,359
 
Total Investments (cost $467,719,489) – 145.3%
       
488,106,122
 
     
Floating Rate Obligations – (1.1)%
       
(3,845,000
     
MuniFund Term Preferred Shares, at Liquidation Value – (47.5)% (7)
       
(159,544,500
     
Other Assets Less Liabilities – 3.3%
       
11,113,734
 
     
Net Assets Applicable to Common Shares – 100%
     
$
335,830,356
 
 
(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 (not covered by the report of independent registered public accounting firm): 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 (not covered by the report of independent registered public accounting firm): Using the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investors Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies.
(4)
 
Investment, or portion of investment, has been pledged to collaterize the net payment obligations for investments in inverse floating rate transactions.
(5)
 
At or subsequent to the end of the reporting period, this security is non-income producing. Non-income producing security, in the case of a bond, generally denotes that the issuer has (1) defaulted on the payment of principal or interest, (2) is under the protection of the Federal Bankruptcy Court or (3) the Fund’s Adviser has concluded that the issue is not likely to meet its future interest payment obligations and has directed the Fund’s custodian to cease accruing additional income on the Fund’s records.
(6)
 
Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities, which ensure the timely payment of principal and interest. Certain bonds backed by U.S. Government or agency securities are regarded as having an implied rating equal to the rating of such securities.
(7)
 
MuniFund Term Preferred Shares, at Liquidation Value as a percentage of Total Investments is 32.7%.
N/R
 
Not rated.
WI/DD
 
Purchased on a when-issued or delayed delivery basis.
(IF)
 
Inverse floating rate investment.
(UB)
 
Underlying bond of an inverse floating rate trust reflected as a financing transaction. See Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies, Inverse Floating Rate Securities for more information.
 
See accompanying notes to financial statements.
 
66
 
Nuveen Investments

 
 

 
 
   
Nuveen Insured California Dividend Advantage Municipal Fund
NKL
 
Portfolio of Investments
February 29, 2012
 
 
Principal
     
Optional Call
       
 
Amount (000)
 
Description (1)
 
Provisions (2)
Ratings (3)
 
Value
 
     
Consumer Staples – 4.0% (2.8% of Total Investments)
           
$
14,155
 
Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed Bonds, Series 2007A-2, 0.000%, 6/01/37
 
6/22 at 100.00
BB–
$
9,883,446
 
     
Education and Civic Organizations – 0.7% (0.5% of Total Investments)
           
 
1,675
 
California Educational Facilities Authority, Revenue Bonds, University of San Diego, Series 2002A, 5.250%, 10/01/30
 
10/12 at 100.00
A2
 
1,693,107
 
     
Health Care – 7.7% (5.3% of Total Investments)
           
 
5,000
 
ABAG Finance Authority for Non-Profit Corporations, California, Cal-Mortgage Insured Revenue Bonds, Sansum-Santa Barbara Medical Foundation Clinic, Series 2002A, 5.600%, 4/01/26
 
4/12 at 100.00
A–
 
5,007,300
 
 
2,815
 
California Health Facilities Financing Authority, Revenue Bonds, Lucile Salter Packard Children’s Hospital, Series 2003C, 5.000%, 8/15/20 – AMBAC Insured
 
8/13 at 100.00
AA
 
2,932,920
 
 
5,000
 
California Statewide Community Development Authority, Revenue Bonds, Kaiser Permanante System, Series 2006, 5.000%, 3/01/41
 
3/16 at 100.00
A+
 
5,174,950
 
 
3,200
 
California Statewide Community Development Authority, Revenue Bonds, St. Joseph Health System, Series 2007A, 5.750%, 7/01/47 – FGIC Insured
 
7/18 at 100.00
AA–
 
3,436,128
 
 
1,748
 
California Statewide Community Development Authority, Revenue Bonds, St. Joseph Health System, Trust 2554, 18.382%, 7/01/47 – AGM Insured (IF)
 
7/18 at 100.00
AA–
 
2,139,080
 
 
17,763
 
Total Health Care
       
18,690,378
 
     
Housing/Multifamily – 0.8% (0.5% of Total Investments)
           
 
1,905
 
Los Angeles, California, GNMA Mortgage-Backed Securities Program Multifamily Housing Revenue Bonds, Park Plaza West Senior Apartments, Series 2001B, 5.300%, 1/20/21 (Alternative Minimum Tax)
 
7/12 at 101.00
AA+
 
1,943,424
 
     
Housing/Single Family – 0.1% (0.1% of Total Investments)
           
 
235
 
California Housing Finance Agency, Home Mortgage Revenue Bonds, Series 2006H, 5.750%, 8/01/30 – FGIC Insured (Alternative Minimum Tax)
 
2/16 at 100.00
BBB
 
235,160
 
     
Long-Term Care – 1.2% (0.9% of Total Investments)
           
 
3,000
 
ABAG Finance Authority for Non-Profit Corporations, California, Insured Senior Living Revenue Bonds, Odd Fellows Home of California, Series 2003A, 5.200%, 11/15/22
 
11/12 at 100.00
A–
 
3,030,930
 
     
Tax Obligation/General – 39.2% (27.3% of Total Investments)
           
 
900
 
California State, General Obligation Bonds, Series 2003, 5.000%, 2/01/21
 
8/13 at 100.00
A1
 
948,708
 
 
8,250
 
California, General Obligation Refunding Bonds, Series 2002, 5.000%, 2/01/22 – NPFG Insured
 
8/12 at 100.00
A1
 
8,276,648
 
 
20,750
 
Coachella Valley Unified School District, Riverside County, California, General Obligation Bonds, Capital Appreciation, Election 2005 Series 2010C, 0.000%, 8/01/43 – AGM Insured
 
No Opt. Call
AA–
 
3,293,648
 
 
3,375
 
Coast Community College District, Orange County, California, General Obligation Bonds, Series 2006C, 0.000%, 8/01/31 – AGM Insured
 
8/18 at 100.00
Aa1
 
3,215,498
 
 
10,000
 
East Side Union High School District, Santa Clara County, California, General Obligation Bonds, Series 2005E, 0.000%, 8/01/28 – SYNCORA GTY Insured
 
8/13 at 47.75
A
 
4,151,800
 
 
230
 
El Monte Union High School District, Los Angeles County, California, General Obligation Bonds, Series 2003A, 5.000%, 6/01/28 – AGM Insured
 
6/13 at 100.00
AA–
 
239,442
 
 
2,730
 
Fontana Unified School District, San Bernardino County, California, General Obligation Bonds, Trust 2668, 9.515%, 2/01/16 – AGM Insured (IF)
 
No Opt. Call
AA–
 
3,420,581
 
 
1,000
 
Los Rios Community College District, Sacramento, El Dorado and Yolo Counties, California, General Obligation Bonds, Series 2006C, 5.000%, 8/01/25 – AGM Insured (UB)
 
8/14 at 102.00
Aa2
 
1,118,480
 
 
1,500
 
Madera Unified School District, Madera County, California, General Obligation Bonds, Series 2002, 5.000%, 8/01/28 – AGM Insured
 
8/12 at 100.00
AA–
 
1,522,245
 
 
3,325
 
Mount Diablo Unified School District, Contra Costa County, California, General Obligation Bonds, Series 2010A, 0.000%, 8/01/30 – AGM Insured
 
8/25 at 100.00
AA–
 
2,191,740
 
 
Nuveen Investments
 
67

 
 

 
 
   
Nuveen Insured California Dividend Advantage Municipal Fund (continued)
NKL
 
Portfolio of Investments
February 29, 2012
 
 
Principal
     
Optional Call
       
 
Amount (000)
 
Description (1)
 
Provisions (2)
Ratings (3)
 
Value
 
     
Tax Obligation/General (continued)
           
$
2,000
 
Murrieta Valley Unified School District, Riverside County, California, General Obligation Bonds, Series 2007, 4.500%, 9/01/30 – AGM Insured
 
9/17 at 100.00
AA–
$
2,138,100
 
 
2,500
 
Oakland Unified School District, Alameda County, California, General Obligation Bonds, Series 2002, 5.250%, 8/01/21 – FGIC Insured
 
8/12 at 100.00
BBB
 
2,536,325
 
 
16,000
 
Poway Unified School District, San Diego County, California, School Facilities Improvement District 2007-1 General Obligation Bonds, Series 2011B, 0.000%, 8/01/46
 
No Opt. Call
Aa2
 
2,528,800
 
 
375
 
Roseville Joint Union High School District, Placer County, California, General Obligation Bonds, Series 2006B, 5.000%, 8/01/27 – FGIC Insured
 
8/15 at 100.00
AA–
 
414,533
 
 
1,500
 
San Juan Capistrano, California, General Obligation Bonds, Open Space Program, Tender Option Bond Trust 3646, 17.890%, 8/01/17 (IF)
 
No Opt. Call
AAA
 
2,106,300
 
 
3,500
 
San Mateo County Community College District, California, General Obligation Bonds, Series 2002A, 5.000%, 9/01/26 – FGIC Insured
 
9/12 at 100.00
Aaa
 
3,568,985
 
     
San Ysidro School District, San Diego County, California, General Obligation Bonds, 1997 Election Series 2011F:
           
 
7,230
 
0.000%, 8/01/42 – AGM Insured
 
8/21 at 21.00
AA–
 
908,377
 
 
10,450
 
0.000%, 8/01/43 – AGM Insured
 
8/21 at 19.43
AA–
 
1,214,081
 
 
21,225
 
0.000%, 8/01/44 – AGM Insured
 
8/21 at 17.98
AA–
 
2,279,990
 
 
12,550
 
0.000%, 8/01/45 – AGM Insured
 
8/21 at 16.64
AA–
 
1,246,090
 
 
23,425
 
0.000%, 8/01/46 – AGM Insured
 
8/21 at 15.39
AA–
 
2,149,478
 
 
14,915
 
Southwestern Community College District, San Diego County, California, General Obligation Bonds, Election of 2008, Series 2011C, 0.000%, 8/01/41
 
No Opt. Call
Aa2
 
3,036,992
 
     
Stockton Unified School District, San Joaquin County, California, General Obligation Bonds, Election 2008 Series 2011D:
           
 
24,280
 
0.000%, 8/01/47 – AGC Insured
 
8/37 at 100.00
AA–
 
11,285,101
 
 
26,280
 
0.000%, 8/01/50 – AGM Insured
 
8/37 at 100.00
AA–
 
12,188,138
 
 
15,780
 
Sylvan Union School District, Stanislaus County, California, General Obligation Bonds, Election of 2006, Series 2010, 0.000%, 8/01/49 – AGM Insured
 
No Opt. Call
AA–
 
5,453,884
 
 
10,000
 
Vista Unified School District, San Diego County, California, General Obligation Bonds, Series 2002A, 5.000%, 8/01/23 – AGM Insured
 
8/12 at 100.00
Aa2
 
10,171,900
 
 
3,905
 
West Kern Community College District, California, General Obligation Bonds, Election 2004, Series 2007C, 5.000%, 10/01/32 – SYNCORA GTY Insured
 
11/17 at 100.00
A+
 
4,151,093
 
 
247,975
 
Total Tax Obligation/General
       
95,756,957
 
     
Tax Obligation/Limited – 46.1% (32.1% of Total Investments)
           
 
1,450
 
Baldwin Park Public Financing Authority, California, Sales Tax and Tax Allocation Bonds, Puente Merced Redevelopment Project, Series 2003, 5.250%, 8/01/21
 
8/13 at 102.00
BBB
 
1,507,275
 
 
6,895
 
Brea and Olinda Unified School District, Orange County, California, Certificates of Participation Refunding, Series 2002A, 5.125%, 8/01/26 – AGM Insured
 
8/12 at 100.00
AA–
 
6,985,876
 
 
2,200
 
California Infrastructure and Economic Development Bank, Los Angeles County, Revenue Bonds, Department of Public Social Services, Series 2003, 5.000%, 9/01/28 – AMBAC Insured
 
9/13 at 101.00
A+
 
2,256,298
 
 
3,100
 
California State Public Works Board, Lease Revenue Bonds, Department of Health Services, Richmond Lab, Series 2005B, 5.000%, 11/01/30 – SYNCORA GTY Insured
 
11/15 at 100.00
A2
 
3,199,913
 
 
465
 
Capistrano Unified School District, Orange County, California, Special Tax Bonds, Community Facilities District, Series 2005, 5.000%, 9/01/24 – FGIC Insured
 
9/15 at 100.00
BBB
 
477,313
 
 
1,400
 
Chino Redevelopment Agency, California, Merged Chino Redevelopment Project Area Tax Allocation Bonds, Series 2006, 5.000%, 9/01/38 – AMBAC Insured
 
9/16 at 101.00
A–
 
1,353,128
 
 
7,035
 
Corona-Norco Unified School District, Riverside County, California, Special Tax Bonds, Community Facilities District 98-1, Series 2003, 5.000%, 9/01/28 – NPFG Insured
 
9/13 at 100.00
BBB
 
7,038,025
 
 
3,145
 
Culver City Redevelopment Agency, California, Tax Allocation Revenue Bonds, Redevelopment Project, Series 2002A, 5.125%, 11/01/25 – NPFG Insured
 
5/12 at 100.00
BBB
 
3,145,660
 
 
68
 
Nuveen Investments

 
 

 
 
 
Principal
     
Optional Call
       
 
Amount (000)
 
Description (1)
 
Provisions (2)
Ratings (3)
 
Value
 
     
Tax Obligation/Limited (continued)
           
$
750
 
Dinuba Redevelopment Agency, California, Tax Allocation Bonds, Merged City of Dinuba Redevelopment Project and Dinuba Redevelopment Project 2, As Amended, Refunding Series 2001, 5.000%, 9/01/31 – NPFG Insured
 
9/12 at 101.00
A–
$
753,068
 
 
6,990
 
El Monte, California, Senior Lien Certificates of Participation, Department of Public Services Facility Phase II, Series 2001, 5.000%, 1/01/21 – AMBAC Insured
 
7/12 at 100.00
A2
 
6,999,646
 
 
4,000
 
Folsom Public Financing Authority, California, Special Tax Revenue Bonds, Series 2004A, 5.000%, 9/01/21 – AMBAC Insured
 
9/12 at 102.00
N/R
 
4,039,320
 
 
7,780
 
Golden State Tobacco Securitization Corporation, California, Enhanced Tobacco Settlement Asset-Backed Revenue Bonds, Series 2005A, 5.000%, 6/01/45 – AMBAC Insured
 
6/15 at 100.00
A2
 
7,806,063
 
 
7,700
 
Golden State Tobacco Securitization Corporation, California, Enhanced Tobacco Settlement Asset-Backed Revenue Bonds, Tender Option Bonds Trust 4686, 8.957%, 6/01/45 – AGC Insured (IF) (4)
 
6/15 at 100.00
AA–
 
7,806,876
 
 
910
 
Hesperia Public Financing Authority, California, Redevelopment and Housing Projects Tax Allocation Bonds, Series 2007A, 5.000%, 9/01/37 – SYNCORA GTY Insured
 
9/17 at 100.00
Ba1
 
685,394
 
 
2,115
 
Inglewood Redevelopment Agency, California, Tax Allocation Bonds, Merged Redevelopment Project, Refunding Series 1998A, 5.250%, 5/01/23 – AMBAC Insured
 
No Opt. Call
N/R
 
2,245,305
 
 
950
 
Inglewood Redevelopment Agency, California, Tax Allocation Bonds, Merged Redevelopment Project, Subordinate Lien Series 2007A-1, 5.000%, 5/01/24 – AMBAC Insured
 
5/17 at 100.00
BBB+
 
946,504
 
 
3,500
 
La Quinta Redevelopment Agency, California, Tax Allocation Bonds, Redevelopment Project Area 1, Series 2001, 5.100%, 9/01/31 – AMBAC Insured
 
9/12 at 101.00
A+
 
3,543,190
 
 
3,400
 
La Quinta Redevelopment Agency, California, Tax Allocation Bonds, Redevelopment Project Area 1, Series 2002, 5.000%, 9/01/22 – AMBAC Insured
 
9/12 at 102.00
A+
 
3,503,258
 
 
845
 
Los Angeles Community Redevelopment Agency, California, Lease Revenue Bonds, Manchester Social Services Project, Series 2005, 5.000%, 9/01/37 – AMBAC Insured
 
9/15 at 100.00
A1
 
855,140
 
 
1,460
 
Los Angeles, California, Certificates of Participation, Municipal Improvement Corporation, Series 2003AW, 5.000%, 6/01/33 – AMBAC Insured
 
6/13 at 100.00
A+
 
1,486,499
 
 
7,000
 
Los Angeles, California, Certificates of Participation, Series 2002, 5.200%, 4/01/27 – AMBAC Insured
 
4/12 at 100.00
A+
 
7,012,950
 
 
8,470
 
Ontario Redevelopment Financing Authority, California, Lease Revenue Bonds, Capital Projects, Series 2001, 5.200%, 8/01/29 – AMBAC Insured
 
8/12 at 100.50
AA–
 
8,563,927
 
 
5,000
 
Palm Desert Financing Authority, California, Tax Allocation Revenue Refunding Bonds, Project Area 1, Series 2002, 5.000%, 4/01/25 – NPFG Insured
 
4/12 at 102.00
BBB
 
5,017,450
 
 
405
 
Rialto Redevelopment Agency, California, Tax Allocation Bonds, Merged Project Area, Series 2005A, 5.000%, 9/01/35 – SYNCORA GTY Insured
 
9/15 at 100.00
A–
 
399,763
 
 
3,000
 
Riverside County Public Financing Authority, California, Tax Allocation Bonds, Multiple Projects, Series 2005A, 5.000%, 10/01/35 – SYNCORA GTY Insured
 
10/15 at 100.00
BBB
 
2,765,760
 
 
4,475
 
Riverside County, California, Asset Leasing Corporate Leasehold Revenue Bonds, Riverside County Hospital Project, Series 1997B, 5.000%, 6/01/19 – NPFG Insured
 
6/12 at 101.00
BBB
 
4,550,986
 
 
2,500
 
Roseville Financing Authority, California, Special Tax Revenue Bonds, Series 2007A, 5.000%, 9/01/33 – AMBAC Insured
 
9/17 at 100.00
N/R
 
2,388,975
 
 
505
 
Roseville, California, Certificates of Participation, Public Facilities, Series 2003A, 5.000%, 8/01/25 – AMBAC Insured
 
8/13 at 100.00
AA–
 
515,711
 
 
3,175
 
San Buenaventura, California, Certificates of Participation, Series 2001C, 5.250%, 2/01/31 - AMBAC Insured
 
2/13 at 100.00
N/R
 
3,192,463
 
 
3,730
 
San Diego Redevelopment Agency, California, Subordinate Lien Tax Increment and Parking Revenue Bonds, Centre City Project, Series 2003B, 5.250%, 9/01/26
 
3/12 at 100.00
Baa3
 
3,732,499
 
 
4,000
 
San Jose Financing Authority, California, Lease Revenue Refunding Bonds, Convention Center Project, Series 2001F, 5.000%, 9/01/19 – NPFG Insured
 
3/12 at 100.00
AA+
 
4,014,360
 
 
815
 
San Jose Redevelopment Agency, California, Tax Allocation Bonds, Merged Area Redevelopment Project, Series 2006C, 5.000%, 8/01/25 – NPFG Insured
 
8/17 at 100.00
BBB
 
818,040
 
 
Nuveen Investments
 
69

 
 

 
 
   
Nuveen Insured California Dividend Advantage Municipal Fund (continued)
NKL
 
Portfolio of Investments
February 29, 2012
 
 
Principal
     
Optional Call
       
 
Amount (000)
 
Description (1)
 
Provisions (2)
Ratings (3)
 
Value
 
     
Tax Obligation/Limited (continued)
           
$
1,000
 
San Jose Redevelopment Agency, California, Tax Allocation Bonds, Merged Project Area, Series 2005A, 5.000%, 8/01/28 – NPFG Insured
 
8/15 at 100.00
BBB
$
972,670
 
 
2,160
 
Temecula Redevelopment Agency, California, Tax Allocation Revenue Bonds, Redevelopment Project 1, Series 2002, 5.125%, 8/01/27 – NPFG Insured
 
8/12 at 100.00
A–
 
2,161,037
 
 
112,325
 
Total Tax Obligation/Limited
       
112,740,342
 
     
Transportation – 3.1% (2.2% of Total Investments)
           
 
7,500
 
Foothill/Eastern Transportation Corridor Agency, California, Toll Road Revenue Refunding Bonds, Series 1999, 5.875%, 1/15/29
 
1/14 at 101.00
BBB–
 
7,610,850
 
     
U.S. Guaranteed – 16.2% (11.3% of Total Investments) (5)
           
 
2,250
 
California Infrastructure and Economic Development Bank, First Lien Revenue Bonds, San Francisco Bay Area Toll Bridge, Series 2003A, 5.000%, 7/01/36 (Pre-refunded 1/01/28) – AMBAC Insured
 
1/28 at 100.00
Aaa
 
3,018,735
 
 
9,000
 
California State University, Systemwide Revenue Bonds, Series 2002A, 5.125%, 11/01/26 (Pre-refunded 11/01/12) – AMBAC Insured
 
11/12 at 100.00
Aa2 (5)
 
9,301,230
 
 
1,000
 
California Statewide Communities Development Authority, Student Housing Revenue Bonds, EAH-East Campus Apartments, LLC-UC Irvine Project, Series 2002A, 5.500%, 8/01/22 (Pre-refunded 8/01/12) – ACA Insured
 
8/12 at 100.00
Baa1 (5)
 
1,022,690
 
 
10,000
 
Fremont Unified School District, Alameda County, California, General Obligation Bonds, Series 2002A, 5.000%, 8/01/25 (Pre-refunded 8/01/12) – FGIC Insured
 
8/12 at 101.00
Aa2 (5)
 
10,305,800
 
 
4,500
 
Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed Revenue Bonds, Series 2003A-2, 7.900%, 6/01/42 (Pre-refunded 6/01/13)
 
6/13 at 100.00
Aaa
 
4,922,145
 
 
3,500
 
Los Angeles Unified School District, California, General Obligation Bonds, Series 2002E, 5.125%, 1/01/27 (Pre-refunded 7/01/12) – NPFG Insured
 
7/12 at 100.00
AA– (5)
 
3,559,255
 
 
3,380
 
Rancho Mirage Joint Powers Financing Authority, California, Revenue Bonds, Eisenhower Medical Center, Series 2004, 5.875%, 7/01/26 (Pre-refunded 7/01/14)
 
7/14 at 100.00
Baa2 (5)
 
3,823,524
 
     
San Francisco Airports Commission, California, Revenue Bonds, San Francisco International Airport, Second Series 2003, Issue 29A:
           
 
1,185
 
5.250%, 5/01/16 (Pre-refunded 5/01/13) – FGIC Insured (Alternative Minimum Tax)
 
5/13 at 100.00
A+ (5)
 
1,254,951
 
 
2,300
 
5.250%, 5/01/17 (Pre-refunded 5/01/13) – FGIC Insured (Alternative Minimum Tax)
 
5/13 at 100.00
A+ (5)
 
2,435,769
 
 
37,115
 
Total U.S. Guaranteed
       
39,644,099
 
     
Utilities – 7.5% (5.2% of Total Investments)
           
 
9,000
 
Anaheim Public Finance Authority, California, Revenue Bonds, Electric System Distribution Facilities, Series 2002A, 5.000%, 10/01/27 – AGM Insured
 
10/12 at 100.00
AA–
 
9,189,360
 
 
2,490
 
Long Beach Bond Finance Authority, California, Natural Gas Purchase Revenue Bonds, Series 2007A, 5.000%, 11/15/35
 
No Opt. Call
A–
 
2,552,972
 
 
830
 
Merced Irrigation District, California, Electric System Revenue Bonds, Series 2005, 5.125%, 9/01/31 – SYNCORA GTY Insured
 
9/15 at 100.00
N/R
 
825,443
 
 
5,630
 
Southern California Public Power Authority, Subordinate Revenue Refunding Bonds, Transmission Project, Series 2002A, 4.750%, 7/01/19 – AGM Insured
 
7/12 at 100.00
AA–
 
5,704,035
 
 
17,950
 
Total Utilities
       
18,271,810
 
     
Water and Sewer – 16.9% (11.8% of Total Investments)
           
 
2,185
 
California Department of Water Resources, Water System Revenue Bonds, Central Valley Project, Series 2002X, 5.150%, 12/01/23 – FGIC Insured
 
12/12 at 100.00
AAA
 
2,261,344
 
 
750
 
Fortuna Public Finance Authority, California, Water Revenue Bonds, Series 2006, 5.000%, 10/01/36 – AGM Insured
 
10/16 at 100.00
AA–
 
785,775
 
 
570
 
Healdsburg Public Financing Authority, California, Wastewater Revenue Bonds, Series 2006, 5.000%, 4/01/36 – NPFG Insured
 
4/16 at 100.00
AA–
 
592,920
 
 
9,000
 
Los Angeles County Sanitation Districts Financing Authority, California, Capital Projects Revenue Bonds, District 14, Series 2005, 5.000%, 10/01/34 – FGIC Insured
 
10/15 at 100.00
A+
 
9,549,270
 
 
70
 
Nuveen Investments

 
 

 
 
 
Principal
     
Optional Call
       
 
Amount (000)
 
Description (1)
 
Provisions (2)
Ratings (3)
 
Value
 
     
Water and Sewer (continued)
           
$
4,500
 
Los Angeles County Sanitation Districts Financing Authority, California, Senior Revenue Bonds, Capital Projects, Series 2003A, 5.000%, 10/01/23 – AGM Insured
 
10/13 at 100.00
AA+
$
4,810,005
 
 
1,560
 
Manteca Financing Authority, California, Sewerage Revenue Bonds, Series 2003B, 5.000%, 12/01/33 – NPFG Insured
 
12/13 at 100.00
Aa3
 
1,590,592
 
 
500
 
Marina Coast Water District, California, Enterprise Certificate of Participation, Series 2006, 5.000%, 6/01/31 – NPFG Insured
 
6/16 at 100.00
AA–
 
524,045
 
 
9,185
 
Orange County Sanitation District, California, Certificates of Participation, Series 2003, 5.000%, 2/01/33 – FGIC Insured (UB)
 
8/13 at 100.00
AAA
 
9,610,357
 
 
8,000
 
San Diego County Water Authority, California, Water Revenue Certificates of Participation, Series 2008A, 5.000%, 5/01/38 – AGM Insured
 
5/18 at 100.00
AA+
 
8,616,800
 
     
Semitropic Water Storage District, Kern County, California, Water Banking Revenue Bonds, Series 2004A:
           
 
1,315
 
5.500%, 12/01/20 – SYNCORA GTY Insured
 
12/14 at 100.00
AA
 
1,475,417
 
 
1,415
 
5.500%, 12/01/21 – SYNCORA GTY Insured
 
12/14 at 100.00
AA
 
1,584,729
 
 
38,980
 
Total Water and Sewer
       
41,401,254
 
$
500,578
 
Total Investments (cost $328,368,423) – 143.5%
       
350,901,757
 
     
Floating Rate Obligations – (3.0)%
       
(7,385,000
     
Variable Rate Demand Preferred Shares, at Liquidation Value – (42.7)% (6)
       
(104,400,000
     
Other Assets Less Liabilities – 2.2%
       
5,403,877
 
     
Net Assets Applicable to Common Shares – 100%
     
$
244,520,634
 
 
   
The Fund intends to invest at least 80% of its net assets in municipal securities that are covered by insurance guaranteeing the timely payment of principal and interest. See Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies, Insurance for more information.
(1)
 
All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted.
(2)
 
Optional Call Provisions (not covered by the report of independent registered public accounting firm): 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 (not covered by the report of independent registered public accounting firm): Using the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investors Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies.
(4)
 
Investment, or portion of investment, has been pledged to collaterize the net payment obligations for investments in inverse floating rate transactions.
(5)
 
Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities, which ensure the timely payment of principal and interest. Certain bonds backed by U.S. Government or agency securities are regarded as having an implied rating equal to the rating of such securities.
(6)
 
Variable Rate Demand Preferred Shares, at Liquidation Value as a percentage of Total Investments is 29.8%.
N/R
 
Not rated.
(IF)
 
Inverse floating rate investment.
(UB)
 
Underlying bond of an inverse floating rate trust reflected as a financing transaction. See Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies, Inverse Floating Rate Securities for more information.
 
See accompanying notes to financial statements.
 
Nuveen Investments
 
71

 
 

 
 
   
Nuveen Insured California Tax-Free Advantage Municipal Fund
NKX
 
Portfolio of Investments
February 29, 2012
 
 
Principal
     
Optional Call
       
 
Amount (000)
 
Description (1)
 
Provisions (2)
Ratings (3)
 
Value
 
     
Consumer Staples – 4.9% (3.4% of Total Investments)
           
$
6,070
 
Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed Bonds, Series 2007A-2, 0.000%, 6/01/37
 
6/22 at 100.00
BB–
$
4,238,256
 
     
Health Care – 24.8% (17.4% of Total Investments)
           
 
1,630
 
California Health Facilities Financing Authority, Revenue Bonds, Childrens Hospital Los Angeles, Series 2010A, 5.250%, 7/01/38 – AGC Insured
 
7/20 at 100.00
AA–
 
1,705,469
 
 
662
 
California Statewide Community Development Authority, Revenue Bonds, St. Joseph Health System, Trust 2554, 18.382%, 7/01/47 – AGM Insured (IF)
 
7/18 at 100.00
AA–
 
809,729
 
 
4,000
 
California Statewide Community Development Authority, Insured Health Facility Revenue Bonds, Catholic Healthcare West, Series 2008K, 5.500%, 7/01/41 – AGC Insured
 
7/17 at 100.00
AA–
 
4,245,160
 
 
1,815
 
California Statewide Community Development Authority, Revenue Bonds, Kaiser Permanante System, Series 2006, 5.000%, 3/01/41
 
3/16 at 100.00
A+
 
1,878,507
 
 
5,020
 
California Statewide Community Development Authority, Revenue Bonds, Kaiser Permanente System, Series 2006, 5.000%, 3/01/41 – BHAC Insured (UB)
 
3/16 at 100.00
AA+
 
5,176,925
 
 
4,060
 
California Statewide Community Development Authority, Revenue Bonds, Sherman Oaks Health System, Series 1998A, 5.000%, 8/01/22 – AMBAC Insured
 
No Opt. Call
A1
 
4,500,307
 
 
1,500
 
California Statewide Community Development Authority, Revenue Bonds, St. Joseph Health System, Series 2007A, 5.750%, 7/01/47 – FGIC Insured
 
7/18 at 100.00
AA–
 
1,610,685
 
 
1,500
 
Santa Clara County Financing Authority, California, Insured Revenue Bonds, El Camino Hospital, Series 2007A, 5.750%, 2/01/41 – AMBAC Insured
 
8/17 at 100.00
A+
 
1,600,785
 
 
20,187
 
Total Health Care
       
21,527,567
 
     
Housing/Multifamily – 1.4% (1.0% of Total Investments)
           
 
1,165
 
Poway, California, Housing Revenue Bonds, Revenue Bonds, Poinsettia Mobile Home Park, Series 2003, 5.000%, 5/01/23
 
5/13 at 102.00
AA–
 
1,208,385
 
     
Long-Term Care – 7.2% (5.0% of Total Investments)
           
 
3,000
 
ABAG Finance Authority for Non-Profit Corporations, California, Cal-Mortgage Insured Revenue Bonds, Channing House, Series 2010, 6.125%, 5/15/40
 
5/20 at 100.00
A–
 
3,229,980
 
 
1,000
 
ABAG Finance Authority for Non-Profit Corporations, California, Insured Senior Living Revenue Bonds, Odd Fellows Home of California, Series 2003A, 5.200%, 11/15/22
 
11/12 at 100.00
A–
 
1,010,310
 
 
2,000
 
California Health Facilities Financing Authority, Cal-Mortgage Insured Revenue Bonds, Northern California Retired Officers Community Corporation – Paradise Valley Estates, Series 2002, 5.250%, 1/01/26
 
1/13 at 100.00
A–
 
2,029,160
 
 
6,000
 
Total Long-Term Care
       
6,269,450
 
     
Tax Obligation/General – 12.5% (8.8% of Total Investments)
           
 
1,030
 
Fontana Unified School District, San Bernardino County, California, General Obligation Bonds, Trust 2668, 9.515%, 2/01/16 – AGM Insured (IF)
 
No Opt. Call
AA–
 
1,290,549
 
 
1,175
 
Mount Diablo Unified School District, Contra Costa County, California, General Obligation Bonds, Series 2010A, 0.000%, 8/01/30 – AGM Insured
 
8/25 at 100.00
AA–
 
774,525
 
 
1,000
 
Murrieta Valley Unified School District, Riverside County, California, General Obligation Bonds, Series 2003A, 5.000%, 9/01/26 – FGIC Insured
 
9/13 at 100.00
A+
 
1,051,220
 
 
1,000
 
Murrieta Valley Unified School District, Riverside County, California, General Obligation Bonds, Series 2007, 4.500%, 9/01/30 – AGM Insured
 
9/17 at 100.00
AA–
 
1,069,050
 
 
140
 
Roseville Joint Union High School District, Placer County, California, General Obligation Bonds, Series 2006B, 5.000%, 8/01/27 – FGIC Insured
 
8/15 at 100.00
AA–
 
154,759
 
 
5,025
 
Stockton Unified School District, San Joaquin County, California, General Obligation Bonds, Election 2008 Series 2011D, 0.000%, 8/01/50 – AGM Insured
 
8/37 at 100.00
AA–
 
2,330,495
 
 
12,520
 
Yosemite Community College District, California, General Obligation Bonds, Capital Appreciation, Election 2004, Series 2010D, 0.000%, 8/01/42
 
No Opt. Call
Aa2
 
4,183,182
 
 
21,890
 
Total Tax Obligation/General
       
10,853,780
 
 
72
 
Nuveen Investments

 
 

 
 
 
Principal
     
Optional Call
       
 
Amount (000)
 
Description (1)
 
Provisions (2)
Ratings (3)
 
Value
 
     
Tax Obligation/Limited – 48.7% (34.1% of Total Investments)
           
$
550
 
Baldwin Park Public Financing Authority, California, Sales Tax and Tax Allocation Bonds, Puente Merced Redevelopment Project, Series 2003, 5.250%, 8/01/21
 
8/13 at 102.00
BBB
$
571,725
 
 
1,165
 
Burbank Public Financing Authority, California, Revenue Refunding Bonds, Golden State Redevelopment Project, Series 2003A, 5.250%, 12/01/22 – AMBAC Insured
 
12/13 at 100.00
A
 
1,189,197
 
 
4,000
 
California State Public Works Board, Lease Revenue Bonds, Department of General Services, Capital East End Project, Series 2002A, 5.000%, 12/01/27 – AMBAC Insured
 
12/12 at 100.00
A2
 
4,105,760
 
 
170
 
Capistrano Unified School District, Orange County, California, Special Tax Bonds, Community Facilities District, Series 2005, 5.000%, 9/01/24 – FGIC Insured
 
9/15 at 100.00
BBB
 
174,502
 
 
525
 
Chino Redevelopment Agency, California, Merged Chino Redevelopment Project Area Tax Allocation Bonds, Series 2006, 5.000%, 9/01/38 – AMBAC Insured
 
9/16 at 101.00
A–
 
507,423
 
 
265
 
Dinuba Redevelopment Agency, California, Tax Allocation Bonds, Merged City of Dinuba Redevelopment Project and Dinuba Redevelopment Project 2, As Amended, Refunding Series 2001, 5.000%, 9/01/31 – NPFG Insured
 
9/12 at 101.00
A–
 
266,084
 
 
1,610
 
Folsom Public Financing Authority, California, Special Tax Revenue Bonds, Series 2004A, 5.000%, 9/01/21 – AMBAC Insured
 
9/12 at 102.00
N/R
 
1,625,826
 
 
3,285
 
Golden State Tobacco Securitization Corporation, California, Enhanced Tobacco Settlement Asset-Backed Revenue Bonds, Series 2005A, 5.000%, 6/01/45 – AMBAC Insured
 
6/15 at 100.00
A2
 
3,296,005
 
 
2,905
 
Golden State Tobacco Securitization Corporation, California, Enhanced Tobacco Settlement Asset-Backed Revenue Bonds, Tender Option Bonds Trust 4686, 8.957%, 6/01/45 – AGC Insured (IF) (4)
 
6/15 at 100.00
AA–
 
2,945,321
 
 
700
 
Hesperia Public Financing Authority, California, Redevelopment and Housing Projects Tax Allocation Bonds, Series 2007A, 5.000%, 9/01/37 – SYNCORA GTY Insured
 
9/17 at 100.00
Ba1
 
527,226
 
 
330
 
Inglewood Redevelopment Agency, California, Tax Allocation Bonds, Merged Redevelopment Project, Subordinate Lien Series 2007A-1, 5.000%, 5/01/24 – AMBAC Insured
 
5/17 at 100.00
BBB+
 
328,786
 
 
5,125
 
Irvine Public Facilities and Infrastructure Authority, California, Assessment Revenue Bonds, Series 2003C, 5.000%, 9/02/21 – AMBAC Insured
 
9/13 at 100.00
N/R
 
5,214,021
 
 
315
 
Los Angeles Community Redevelopment Agency, California, Lease Revenue Bonds, Manchester Social Services Project, Series 2005, 5.000%, 9/01/37 – AMBAC Insured
 
9/15 at 100.00
A1
 
318,780
 
 
1,770
 
Los Angeles Unified School District, California, Certificates of Participation, Administration Building Project II, Series 2002C, 5.000%, 10/01/27 – AMBAC Insured
 
10/12 at 100.00
Aa3
 
1,781,399
 
 
2,000
 
Los Angeles, California, Certificates of Participation, Municipal Improvement Corporation, Series 2003AW, 5.000%, 6/01/33 – AMBAC Insured
 
6/13 at 100.00
A+
 
2,036,300
 
 
1,500
 
Los Angeles, California, Municipal Improvement Corporation, Lease Revenue Bonds, Police Headquarters, Series 2006A, 4.750%, 1/01/31 – FGIC Insured
 
1/17 at 100.00
A+
 
1,553,310
 
 
1,500
 
Los Osos, California, Improvement Bonds, Community Services Wastewater Assessment District 1, Series 2002, 5.000%, 9/02/33 – NPFG Insured
 
3/13 at 100.00
BBB
 
1,413,285
 
 
150
 
Rialto Redevelopment Agency, California, Tax Allocation Bonds, Merged Project Area, Series 2005A, 5.000%, 9/01/35 – SYNCORA GTY Insured
 
9/15 at 100.00
A–
 
148,061
 
 
190
 
Roseville, California, Certificates of Participation, Public Facilities, Series 2003A, 5.000%, 8/01/25 – AMBAC Insured
 
8/13 at 100.00
AA–
 
194,030
 
     
San Buenaventura, California, Certificates of Participation, Golf Course Financing Project, Series 2002D:
           
 
3,000
 
5.000%, 2/01/27 – AMBAC Insured
 
8/12 at 100.00
AA–
 
3,002,730
 
 
3,300
 
5.000%, 2/01/32 – AMBAC Insured
 
8/12 at 100.00
AA–
 
3,301,650
 
 
1,200
 
San Diego Redevelopment Agency, California, Subordinate Lien Tax Increment and Parking Revenue Bonds, Centre City Project, Series 2003B, 5.250%, 9/01/26
 
3/12 at 100.00
Baa3
 
1,200,804
 
 
2,770
 
San Jose Financing Authority, California, Lease Revenue Refunding Bonds, Civic Center Project, Series 2002B, 5.000%, 6/01/32 – AMBAC Insured
 
6/12 at 100.00
AA+
 
2,780,831
 
 
1,000
 
San Jose Redevelopment Agency, California, Tax Allocation Bonds, Merged Project Area, Series 2005A, 5.000%, 8/01/28 – NPFG Insured
 
8/15 at 100.00
BBB
 
972,670
 
 
3,500
 
Stockton Public Financing Authority, California, Lease Revenue Bonds, Series 2004, 5.250%, 9/01/34 – FGIC Insured
 
9/14 at 100.00
BBB
 
2,814,000
 
 
42,825
 
Total Tax Obligation/Limited
       
42,269,726
 
 
Nuveen Investments
 
73

 
 

 
 
   
Nuveen Insured California Tax-Free Advantage Municipal Fund (continued)
NKX
 
Portfolio of Investments
 February 29, 2012
 
 
Principal
     
Optional Call
       
 
Amount (000)
 
Description (1)
 
Provisions (2)
Ratings (3)
 
Value
 
     
Transportation – 8.4% (5.9% of Total Investments)
           
$
5,480
 
Bay Area Governments Association, California, BART SFO Extension, Airport Premium Fare Revenue Bonds, Series 2002A, 5.000%, 8/01/26 – AMBAC Insured
 
8/12 at 100.00
N/R
$
5,451,940
 
 
2,000
 
Foothill/Eastern Transportation Corridor Agency, California, Toll Road Revenue Bonds, Series 1995A, 5.000%, 1/01/35
 
7/12 at 100.00
BBB–
 
1,810,440
 
 
7,480
 
Total Transportation
       
7,262,380
 
     
U.S. Guaranteed – 20.7% (14.5% of Total Investments) (5)
           
 
1,000
 
Berryessa Union School District, Santa Clara County, California, General Obligation Bonds, Series 2003C, 5.000%, 8/01/21 (Pre-refunded 8/01/12) – AGM Insured
 
8/12 at 100.00
AA– (5)
 
1,020,580
 
 
2,000
 
Butte-Glenn Community College District, Butte and Glenn Counties, California, General Obligation Bonds, Series 2002A, 5.000%, 8/01/26 (Pre-refunded 8/01/12) – NPFG Insured
 
8/12 at 101.00
Aa2 (5)
 
2,061,060
 
 
500
 
California State, General Obligation Bonds, Series 2004, 5.250%, 4/01/34 (Pre-refunded 4/01/14)
 
4/14 at 100.00
Aaa
 
552,220
 
 
450
 
Fremont Unified School District, Alameda County, California, General Obligation Bonds, Series 2002A, 5.000%, 8/01/25 (Pre-refunded 8/01/12) – FGIC Insured
 
8/12 at 101.00
Aa2 (5)
 
463,761
 
 
1,625
 
Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed Revenue Bonds, Series 2003A-2, 7.900%, 6/01/42 (Pre-refunded 6/01/13)
 
6/13 at 100.00
Aaa
 
1,777,441
 
 
2,030
 
Hacienda La Puente Unified School District, Los Angeles County, California, General Obligation Bonds, Series 2003B, 5.000%, 8/01/27 (Pre-refunded 8/01/13) – AGM Insured
 
8/13 at 100.00
AA– (5)
 
2,168,466
 
 
2,000
 
Los Angeles, California, General Obligation Bonds, Series 2002A, 5.000%, 9/01/22 (Pre-refunded 9/01/12) – NPFG Insured
 
9/12 at 100.00
AA– (5)
 
2,049,220
 
 
1,260
 
Rancho Mirage Joint Powers Financing Authority, California, Revenue Bonds, Eisenhower Medical Center, Series 2004, 5.875%, 7/01/26 (Pre-refunded 7/01/14)
 
7/14 at 100.00
Baa2 (5)
 
1,425,337
 
 
3,855
 
San Rafael City High School District, Marin County, California, General Obligation Bonds, Series 2003A, 5.000%, 8/01/28 (Pre-refunded 8/01/12) – AGM Insured
 
8/12 at 100.00
AA (5)
 
3,934,336
 
 
2,390
 
Solano County, California, Certificates of Participation, Series 2002, 5.250%, 11/01/24 (Pre-refunded 11/01/12) – NPFG Insured
 
11/12 at 100.00
AA– (5)
 
2,472,001
 
 
17,110
 
Total U.S. Guaranteed
       
17,924,422
 
     
Utilities – 3.1% (2.2% of Total Investments)
           
 
1,000
 
Anaheim Public Finance Authority, California, Second Lien Electric Distribution Revenue Bonds, Series 2004, 5.250%, 10/01/21 – NPFG Insured
 
10/14 at 100.00
A+
 
1,066,480
 
 
945
 
Long Beach Bond Finance Authority, California, Natural Gas Purchase Revenue Bonds, Series 2007A, 5.500%, 11/15/37
 
No Opt. Call
A–
 
1,036,107
 
 
275
 
Los Angeles Department of Water and Power, California, Power System Revenue Bonds, Series 2003A-2, 5.000%, 7/01/21 – NPFG Insured
 
7/13 at 100.00
AA–
 
291,242
 
 
310
 
Merced Irrigation District, California, Electric System Revenue Bonds, Series 2005, 5.125%, 9/01/31 – SYNCORA GTY Insured
 
9/15 at 100.00
N/R
 
308,298
 
 
2,530
 
Total Utilities
       
2,702,127
 
     
Water and Sewer – 11.1% (7.7% of Total Investments)
           
 
1,000
 
Castaic Lake Water Agency, California, Certificates of Participation, Series 2006C, 5.000%, 8/01/36 – NPFG Insured
 
8/16 at 100.00
AA–
 
1,035,830
 
 
750
 
Fortuna Public Finance Authority, California, Water Revenue Bonds, Series 2006, 5.000%, 10/01/36 – AGM Insured
 
10/16 at 100.00
AA–
 
785,775
 
 
215
 
Healdsburg Public Financing Authority, California, Wastewater Revenue Bonds, Series 2006, 5.000%, 4/01/36 – NPFG Insured
 
4/16 at 100.00
AA–
 
223,645
 
 
575
 
Manteca Financing Authority, California, Sewerage Revenue Bonds, Series 2003B, 5.000%, 12/01/33 – NPFG Insured
 
12/13 at 100.00
Aa3
 
586,276
 
 
170
 
Marina Coast Water District, California, Enterprise Certificate of Participation, Series 2006, 5.000%, 6/01/31 – NPFG Insured
 
6/16 at 100.00
AA–
 
178,175
 
 
74
 
Nuveen Investments

 
 

 
 
 
Principal
     
Optional Call
       
 
Amount (000)
 
Description (1)
 
Provisions (2)
Ratings (3)
 
Value
 
     
Water and Sewer (continued)
           
     
San Diego Public Facilities Financing Authority, California, Subordinate Lien Water Revenue Bonds, Series 2002:
           
$
3,000
 
5.000%, 8/01/22 – NPFG Insured
 
8/12 at 100.00
Aa3
$
3,056,070
 
 
2,500
 
5.000%, 8/01/23 – NPFG Insured
 
8/12 at 100.00
Aa3
 
2,540,725
 
 
1,180
 
South Feather Water and Power Agency, California, Water Revenue Certificates of Participation, Solar Photovoltaic Project, Series 2003, 5.375%, 4/01/24
 
4/13 at 100.00
A
 
1,197,582
 
 
9,390
 
Total Water and Sewer
       
9,604,078
 
$
134,647
 
Total Investments (cost $120,163,365) – 142.8%
       
123,860,171
 
     
Floating Rate Obligations – (3.9)%
       
(3,360,000
     
Variable Rate Demand Preferred Shares, at Liquidation Value – (40.9)% (6)
       
(35,500,000
     
Other Assets Less Liabilities – 2.0%
       
1,730,702
 
     
Net Assets Applicable to Common Shares – 100%
     
$
86,730,873
 
 
   
The Fund intends to invest at least 80% of its net assets in municipal securities that are covered by insurance guaranteeing the timely payment of principal and interest. See Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies, Insurance for more information.
(1)
 
All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted.
(2)
 
Optional Call Provisions (not covered by the report of independent registered public accounting firm): 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 (not covered by the report of independent registered public accounting firm): Using the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investors Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies.
(4)
 
Investment, or portion of investment, has been pledged to collaterize the net payment obligations for investments in inverse floating rate transactions.
(5)
 
Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities, which ensure the timely payment of principal and interest. Certain bonds backed by U.S. Government or agency securities are regarded as having an implied rating equal to the rating of such securities.
(6)
 
Variable Rate Demand Preferred Shares, at Liquidation Value as a percentage of Total Investments is 28.7%.
N/R
 
Not rated.
(IF)
 
Inverse floating rate investment.
(UB)
 
Underlying bond of an inverse floating rate trust reflected as a financing transaction. See Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies, Inverse Floating Rate Securities for more information.
     
   
See accompanying notes to financial statements.
 
Nuveen Investments
 
75

 
 

 

   
Statement of
   
Assets & Liabilities
      February 29, 2012

   
Insured California
Premium Income
(NPC
)
Insured California
Premium Income 2
(NCL
)
California Premium
Income
(NCU
)
California Dividend
Advantage
(NAC
)
Assets
                         
Investments, at value (cost $126,573,381, $263,273,073, $115,646,263 and $484,363,905, respectively)
 
$
138,048,126
 
$
280,025,460
 
$
125,293,556
 
$
510,520,007
 
Cash
   
5,040,057
   
1,721,865
   
1,031,216
   
1,740,120
 
Receivables:
                         
Interest
   
2,358,079
   
3,315,739
   
1,486,133
   
7,650,415
 
Investments sold
   
   
2,409,626
   
2,350,000
   
 
Deferred offering costs
   
802,028
   
602,503
   
619,858
   
635,430
 
Other assets
   
38,431
   
85,157
   
3,474
   
182,657
 
Total assets
   
146,286,721
   
288,160,350
   
130,784,237
   
520,728,629
 
                           
Liabilities
                         
Floating rate obligations
   
   
17,880,000
   
6,650,000
   
28,545,000
 
Payables:
                         
Common share dividends
   
429,090
   
899,997
   
394,913
   
1,760,133
 
Interest
   
   
   
60,701
   
 
Investments purchased
   
   
   
503,450
   
4,554,000
 
Offering costs
   
186,672
   
121,533
   
54,715
   
38,004
 
MuniFund Term Preferred (MTP) Shares, at liquidation value
   
   
   
35,250,000
   
 
Variable Rate Demand Preferred (VRDP) Shares, at liquidation value
   
42,700,000
   
74,000,000
   
   
136,200,000
 
Accrued expenses:
                         
Management fees
   
73,062
   
141,188
   
63,815
   
251,791
 
Other
   
416,974
   
405,600
   
51,505
   
176,859
 
Total liabilities
   
43,805,798
   
93,448,318
   
43,029,099
   
171,525,787
 
Net assets applicable to Common shares
 
$
102,480,923
 
$
194,712,032
 
$
87,755,138
 
$
349,202,842
 
Common shares outstanding
   
6,449,565
   
12,671,099
   
5,730,688
   
23,483,222
 
Net asset value per Common share outstanding (net assets applicable to Common shares, divided by Common shares outstanding)
 
$
15.89
 
$
15.37
 
$
15.31
 
$
14.87
 
Net assets applicable to Common shares consist of:
                         
Common shares, $.01 par value per share
 
$
64,496
 
$
126,711
 
$
57,307
 
$
234,832
 
Paid-in surplus
   
88,909,756
   
175,580,095
   
77,627,379
   
334,377,186
 
Undistributed (Over-distribution of) net investment income
   
1,541,439
   
3,188,005
   
1,458,906
   
6,736,623
 
Accumulated net realized gain (loss)
   
490,487
   
(935,166
)
 
(1,035,747
)
 
(18,301,901
)
Net unrealized appreciation (depreciation)
   
11,474,745
   
16,752,387
   
9,647,293
   
26,156,102
 
Net assets applicable to Common shares
 
$
102,480,923
 
$
194,712,032
 
$
87,755,138
 
$
349,202,842
 
Authorized shares:
                         
Common
   
200,000,000
   
200,000,000
   
Unlimited
   
Unlimited
 
Auction Rate Preferred Shares (ARPS)
   
1,000,000
   
1,000,000
   
Unlimited
   
Unlimited
 
MTP
   
   
   
Unlimited
   
 
VRDP
   
50,000
   
50,000
   
   
Unlimited
 
 
See accompanying notes to financial statements.

76
 
Nuveen Investments
 
 
 

 

   
California Dividend
Advantage 2
(NVX
)
California Dividend
Advantage 3
(NZH
)
Insured California
Dividend Advantage
(NKL
)
Insured California
Tax-Free Advantage
(NKX
)
Assets
                         
Investments, at value (cost $311,649,957, $467,719,489, $328,368,423 and $120,163,365, respectively)
 
$
329,724,378
 
$
488,106,122
 
$
350,901,757
 
$
123,860,171
 
Cash
   
4,687,040
   
5,820,018
   
498,690
   
368,231
 
Receivables:
                         
Interest
   
4,923,825
   
7,983,472
   
3,980,798
   
1,486,095
 
Investments sold
   
10,300
   
1,390,980
   
1,792,434
   
 
Deferred offering costs
   
1,480,243
   
2,126,839
   
567,000
   
472,840
 
Other assets
   
40,509
   
65,133
   
134,502
   
35,665
 
Total assets
   
340,866,295
   
505,492,564
   
357,875,181
   
126,223,002
 
Liabilities
                         
Floating rate obligations
   
11,390,000
   
3,845,000
   
7,385,000
   
3,360,000
 
Payables:
                         
Common share dividends
   
1,153,849
   
1,755,752
   
1,232,542
   
401,243
 
Interest
   
183,813
   
363,454
   
   
 
Investments purchased
   
1,345,900
   
3,383,534
   
   
 
Offering costs
   
197,948
   
372,133
   
33,247
   
 
MuniFund Term Preferred (MTP) Shares, at liquidation value
   
97,846,300
   
159,544,500
   
   
 
Variable Rate Demand Preferred (VRDP) Shares, at liquidation value
   
   
   
104,400,000
   
35,500,000
 
Accrued expenses:
                         
Management fees
   
165,690
   
250,563
   
161,285
   
62,578
 
Other
   
108,798
   
147,272
   
142,473
   
168,308
 
Total liabilities
   
112,392,298
   
169,662,208
   
113,354,547
   
39,492,129
 
Net assets applicable to Common shares
 
$
228,473,997
 
$
335,830,356
 
$
244,520,634
 
$
86,730,873
 
Common shares outstanding
   
14,746,722
   
24,139,232
   
15,265,697
   
5,888,875
 
Net asset value per Common share outstanding (net assets applicable to Common shares, divided by Common shares outstanding)
 
$
15.49
 
$
13.91
 
$
16.02
 
$
14.73
 
Net assets applicable to Common shares consist of:
                         
Common shares, $.01 par value per share
 
$
147,467
 
$
241,392
 
$
152,657
 
$
58,889
 
Paid-in surplus
   
209,062,269
   
338,696,024
   
216,833,807
   
82,740,430
 
Undistributed (Over-distribution of) net investment income
   
3,684,167
   
2,623,057
   
4,728,415
   
1,216,642
 
Accumulated net realized gain (loss)
   
(2,494,327
)
 
(26,116,750
)
 
272,421
   
(981,894
)
Net unrealized appreciation (depreciation)
   
18,074,421
   
20,386,633
   
22,533,334
   
3,696,806
 
Net assets applicable to Common shares
 
$
228,473,997
 
$
335,830,356
 
$
244,520,634
 
$
86,730,873
 
Authorized shares:
                         
Common
   
Unlimited
   
Unlimited
   
Unlimited
   
Unlimited
 
Auction Rate Preferred Shares (ARPS)
   
Unlimited
   
Unlimited
   
Unlimited
   
Unlimited
 
MTP
   
Unlimited
   
Unlimited
   
   
 
VRDP
   
   
   
Unlimited
   
Unlimited
 

See accompanying notes to financial statements.

Nuveen Investments
 
77
 
 
 

 

   
Statement of
   
Operations
      Year Ended February 29, 2012
 
   
Insured California
Premium Income
(NPC
)
Insured California
Premium Income 2
(NCL
)
California Premium
Income
(NCU
)
California Dividend
Advantage
(NAC
)
Investment Income
 
$
7,384,524
 
$
14,109,847
 
$
6,676,429
 
$
26,810,378
 
Expenses
                         
Management fees
   
881,605
   
1,702,059
   
765,538
   
3,038,856
 
Auction fees
   
   
   
   
56,375
 
Dividend disbursing agent fees
   
   
   
   
8,353
 
Shareholders’ servicing agent fees and expenses
   
6,435
   
10,095
   
20,617
   
3,190
 
Interest expense and amortization of offering costs
   
163,551
   
363,073
   
914,462
   
446,722
 
Fees on VRDP Shares
   
485,559
   
649,922
   
   
1,036,757
 
Custodian’s fees and expenses
   
25,022
   
45,582
   
23,875
   
81,688
 
Directors’/Trustees’ fees and expenses
   
4,191
   
7,573
   
3,543
   
13,008
 
Professional fees
   
25,108
   
24,031
   
27,359
   
 
Shareholders’ reports – printing and mailing expenses
   
18,785
   
29,252
   
23,714
   
43,113
 
Stock exchange listing fees
   
8,911
   
8,911
   
21,451
   
26,370
 
Investor relations expense
   
9,404
   
16,708
   
9,211
   
27,887
 
Reorganization expense
   
365,000
   
290,000
   
   
 
Other expenses
   
31,638
   
39,238
   
31,901
   
34,332
 
Total expenses before custodian fee credit and expense reimbursement
   
2,025,209
   
3,186,444
   
1,841,671
   
4,816,651
 
Custodian fee credit
   
(588
)
 
(782
)
 
(433
)
 
(1,970
)
Expense reimbursement
   
   
   
   
 
Net expenses
   
2,024,621
   
3,185,662
   
1,841,238
   
4,814,681
 
Net investment income (loss)
   
5,359,903
   
10,924,185
   
4,835,191
   
21,995,697
 
Realized and Unrealized Gain (Loss)
                         
Net realized gain (loss) from:
                         
Investments
   
872,050
   
750,538
   
(69,508
)
 
(4,191,786
)
Forward swaps
   
   
(346,971
)
 
   
 
Change in net unrealized appreciation (depreciation) of:
                         
Investments
   
14,571,360
   
29,265,714
   
13,699,675
   
55,341,444
 
Forward swaps
   
   
15,872
   
   
 
Net realized and unrealized gain (loss)
   
15,443,410
   
29,685,153
   
13,630,167
   
51,149,658
 
Distributions to Auction Rate Preferred Shareholders
                         
From net investment income
   
   
   
   
(164,318
)
Decrease in net assets applicable to Common shares from distributions to Auction Rate Preferred shareholders
   
   
   
   
(164,318
)
Net increase (decrease) in net assets applicable to Common shares from operations
 
$
20,803,313
 
$
40,609,338
 
$
18,465,358
 
$
72,981,037
 

See accompanying notes to financial statements.
     
78
 
Nuveen Investments
 
 
 

 
 
   
California Dividend
Advantage 2
(NVX
)
California Dividend
Advantage 3
(NZH
)
Insured California
Dividend Advantage
(NKL
)
Insured California
Tax-Free Advantage
(NKX
)
Investment Income
 
$
18,196,091
 
$
27,559,307
 
$
18,469,354
 
$
6,453,342
 
Expenses
                         
Management fees
   
2,006,917
   
3,042,367
   
2,113,341
   
759,435
 
Auction fees
   
   
7,192
   
28,892
   
 
Dividend disbursing agent fees
   
3,342
   
13,425
   
23,342
   
 
Shareholders’ servicing agent fees and expenses
   
21,836
   
23,741
   
1,508
   
769
 
Interest expense and amortization of offering costs
   
2,643,277
   
4,656,322
   
257,870
   
140,179
 
Fees on VRDP Shares
   
   
   
794,694
   
403,684
 
Custodian’s fees and expenses
   
49,740
   
75,912
   
55,515
   
22,146
 
Directors’/Trustees’ fees and expenses
   
9,418
   
14,163
   
9,522
   
3,542
 
Professional fees
   
23,828
   
   
22,119
   
 
Shareholders’ reports – printing and mailing expenses
   
43,144
   
54,210
   
30,804
   
16,628
 
Stock exchange listing fees
   
33,918
   
29,816
   
2,002
   
773
 
Investor relations expense
   
21,009
   
28,370
   
20,129
   
7,846
 
Reorganization expense
   
   
   
20,000
   
160,000
 
Other expenses
   
19,338
   
40,249
   
36,447
   
30,590
 
Total expenses before custodian fee credit and expense reimbursement
   
4,875,767
   
7,985,767
   
3,416,185
   
1,545,592
 
Custodian fee credit
   
(1,583
)
 
(2,283
)
 
(922
)
 
(827
)
Expense reimbursement
   
(13,080
)
 
(142,842
)
 
(185,280
)
 
 
Net expenses
   
4,861,104
   
7,840,642
   
3,229,983
   
1,544,765
 
Net investment income (loss)
   
13,334,987
   
19,718,665
   
15,239,371
   
4,908,577
 
Realized and Unrealized Gain (Loss)
                         
Net realized gain (loss) from:
                         
Investments
   
(1,141,813
)
 
(5,120,796
)
 
1,662,629
   
29,958
 
Forward swaps
   
   
   
   
 
Change in net unrealized appreciation (depreciation) of:
                         
Investments
   
31,781,569
   
50,296,977
   
33,515,295
   
11,150,968
 
Forward swaps
   
   
   
   
 
Net realized and unrealized gain (loss)
   
30,639,756
   
45,176,181
   
35,177,924
   
11,180,926
 
Distributions to Auction Rate Preferred Shareholders
                         
From net investment income
   
(18,547
)
 
(62,212
)
 
(125,654
)
 
 
Decrease in net assets applicable to Common shares from distributions to Auction Rate Preferred shareholders
   
(18,547
)
 
(62,212
)
 
(125,654
)
 
 
Net increase (decrease) in net assets applicable to Common shares from operations
 
$
43,956,196
 
$
64,832,634
 
$
50,291,641
 
$
16,089,503
 

See accompanying notes to financial statements.

Nuveen Investments
 
79
 
 
 

 

   
Statement of
   
Changes in Net Assets

   
Insured California
Premium Income (NPC)
 
Insured California
Premium Income 2 (NCL)
 
California Premium
Income (NCU)
 
   
Year
Ended
2/29/12
 
Year
Ended
2/28/11
 
Year
Ended
2/29/12
 
Year
Ended
2/28/11
 
Year
Ended
2/29/12
 
Year
Ended
2/28/11
 
Operations
                                     
Net investment income (loss)
 
$
5,359,903
 
$
5,688,214
 
$
10,924,185
 
$
11,578,448
 
$
4,835,191
 
$
5,256,437
 
Net realized gain (loss) from:
                                     
Investments
   
872,050
   
171,851
   
750,538
   
3,862,920
   
(69,508
)
 
17,475
 
Forward swaps
   
   
   
(346,971
)
 
   
   
 
Change in net unrealized appreciation (depreciation) of:
                                     
Investments
   
14,571,360
   
(7,233,345
)
 
29,265,714
   
(16,035,141
)
 
13,699,675
   
(4,515,299
)
Forward swaps
   
   
   
15,872
   
(15,872
)
 
   
 
Distributions to Auction Rate Preferred Shareholders from net investment income
   
   
(25,864
)
 
   
(280,073
)
 
   
(91,616
)
Net increase (decrease) in net assets applicable to Common shares from operations
   
20,803,313
   
(1,399,144
)
 
40,609,338
   
(889,718
)
 
18,465,358
   
666,997
 
Distributions to Common Shareholders
                                     
From net investment income
   
(5,638,153
)
 
(5,537,014
)
 
(11,358,398
)
 
(10,941,930
)
 
(4,985,699
)
 
(4,944,267
)
From accumulated net realized gains
   
(624,887
)
 
(180,380
)
 
   
   
   
 
Decrease in net assets applicable to Common shares from distributions to Common shareholders
   
(6,263,040
)
 
(5,717,394
)
 
(11,358,398
)
 
(10,941,930
)
 
(4,985,699
)
 
(4,944,267
)
Capital Share Transactions
                                     
Common shares:
                                     
Net proceeds issued to shareholders due to reinvestment of distributions
   
113,629
   
   
101,875
   
36,242
   
   
 
Repurchased and retired
   
   
   
   
(14,592
)
 
   
(28,416
)
Net increase (decrease) in net assets applicable to Common shares from capital share transactions
   
113,629
   
   
101,875
   
21,650
   
   
(28,416
)
Net increase (decrease) in net assets applicable to Common shares
   
14,653,902
   
(7,116,538
)
 
29,352,815
   
(11,809,998
)
 
13,479,659
   
(4,305,686
)
Net assets applicable to Common shares at the beginning of period
   
87,827,021
   
94,943,559
   
165,359,217
   
177,169,215
   
74,275,479
   
78,581,165
 
Net assets applicable to Common shares at the end of period
 
$
102,480,923
 
$
87,827,021
 
$
194,712,032
 
$
165,359,217
 
$
87,755,138
 
$
74,275,479
 
Undistributed (Over-distribution of) net investment income at the end of period
 
$
1,541,439
 
$
1,493,036
 
$
3,188,005
 
$
3,319,135
 
$
1,458,906
 
$
1,445,417
 
 
See accompanying notes to financial statements.

80
 
Nuveen Investments
 
 
 

 

   
California Dividend
Advantage (NAC)
 
California Dividend
Advantage 2 (NVX)
 
California Dividend
Advantage 3 (NZH)
 
   
Year
Ended
2/29/12
 
Year
Ended
2/28/11
 
Year
Ended
2/29/12
 
Year
Ended
2/28/11
 
Year
Ended
2/29/12
 
Year
Ended
2/28/11
 
Operations
                                     
Net investment income (loss)
 
$
21,995,697
 
$
23,199,120
 
$
13,334,987
 
$
15,204,018
 
$
19,718,665
 
$
21,221,264
 
Net realized gain (loss) from:
                                     
Investments
   
(4,191,786
)
 
504,735
   
(1,141,813
)
 
1,606,851
   
(5,120,796
)
 
(1,730,418
)
Forward swaps
   
   
   
   
   
   
 
Change in net unrealized appreciation (depreciation) of:
                                     
Investments
   
55,341,444
   
(30,484,773
)
 
31,781,569
   
(17,378,595
)
 
50,296,977
   
(22,899,118
)
Forward swaps
   
   
   
   
   
   
 
Distributions to Auction Rate Preferred Shareholders from net investment income
   
(164,318
)
 
(565,279
)
 
(18,547
)
 
(331,826
)
 
(62,212
)
 
(290,939
)
Net increase (decrease) in net assets applicable to Common shares from operations
   
72,981,037
   
(7,346,197
)
 
43,956,196
   
(899,552
)
 
64,832,634
   
(3,699,211
)
Distributions to Common Shareholders
                                     
From net investment income
   
(21,449,669
)
 
(20,815,246
)
 
(14,156,853
)
 
(14,112,614
)
 
(21,716,912
)
 
(21,711,954
)
From accumulated net realized gains
   
   
   
   
   
   
 
Decrease in net assets applicable to Common shares from distributions to Common shareholders
   
(21,449,669
)
 
(20,815,246
)
 
(14,156,853
)
 
(14,112,614
)
 
(21,716,912
)
 
(21,711,954
)
Capital Share Transactions
                                     
Common shares:
                                     
Net proceeds issued to shareholders due to reinvestment of distributions
   
42,394
   
   
   
   
151,583
   
114,072
 
Repurchased and retired
   
   
   
   
   
   
 
Net increase (decrease) in net assets applicable to Common shares from capital share transactions
   
42,394
   
   
   
   
151,583
   
114,072
 
Net increase (decrease) in net assets applicable to Common shares
   
51,573,762
   
(28,161,443
)
 
29,799,343
   
(15,012,166
)
 
43,267,305
   
(25,297,093
)
Net assets applicable to Common shares at the beginning of period
   
297,629,080
   
325,790,523
   
198,674,654
   
213,686,820
   
292,563,051
   
317,860,144
 
Net assets applicable to Common shares at the end of period
 
$
349,202,842
 
$
297,629,080
 
$
228,473,997
 
$
198,674,654
 
$
335,830,356
 
$
292,563,051
 
Undistributed (Over-distribution of) net investment income at the end of period
 
$
6,736,623
 
$
6,424,912
 
$
3,684,167
 
$
4,037,577
 
$
2,623,057
 
$
3,952,914
 

See accompanying notes to financial statements.

Nuveen Investments
 
81
 
 
 

 

   
Statement of
   
Changes in Net Assets (continued)

   
Insured California
Dividend Advantage (NKL)
 
Insured California
Tax-Free Advantage (NKX)
 
   
Year
Ended
2/29/12
 
Year
Ended
2/28/11
 
Year
Ended
2/29/12
 
Year
Ended
2/28/11
 
Operations
                         
Net investment income (loss)
 
$
15,239,371
 
$
15,829,293
 
$
4,908,577
 
$
4,750,929
 
Net realized gain (loss) from:
                         
Investments
   
1,662,629
   
93,837
   
29,958
   
105,651
 
Forward swaps
   
   
   
   
 
Change in net unrealized appreciation (depreciation) of:
                         
Investments
   
33,515,295
   
(16,671,070
)
 
11,150,968
   
(7,235,385
)
Forward swaps
   
   
   
   
 
Distributions to Auction Rate Preferred Shareholders from net investment income
   
(125,654
)
 
(435,387
)
 
   
 
Net increase (decrease) in net assets applicable to Common shares from operations
   
50,291,641
   
(1,183,327
)
 
16,089,503
   
(2,378,805
)
Distributions to Common Shareholders
                         
From net investment income
   
(14,866,235
)
 
(14,210,033
)
 
(4,874,826
)
 
(4,715,499
)
From accumulated net realized gains
   
   
   
   
 
Decrease in net assets applicable to Common shares from distributions to Common shareholders
   
(14,866,235
)
 
(14,210,033
)
 
(4,874,826
)
 
(4,715,499
)
Capital Share Transactions
                         
Common shares:
                         
Net proceeds issued to shareholders due to reinvestment of distributions
   
145,163
   
42,871
   
23,555
   
8,413
 
Repurchased and retired
   
   
   
   
 
Net increase (decrease) in net assets applicable to Common shares from capital share transactions
   
145,163
   
42,871
   
23,555
   
8,413
 
Net increase (decrease) in net assets applicable to Common shares
   
35,570,569
   
(15,350,489
)
 
11,238,232
   
(7,085,891
)
Net assets applicable to Common shares at the beginning of period
   
208,950,065
   
224,300,554
   
75,492,641
   
82,578,532
 
Net assets applicable to Common shares at the end of period
 
$
244,520,634
 
$
208,950,065
 
$
86,730,873
 
$
75,492,641
 
Undistributed (Over-distribution of)net investment income at the end of period
 
$
4,728,415
 
$
4,534,074
 
$
1,216,642
 
$
1,034,878
 
 
See accompanying notes to financial statements.
 
82
 
Nuveen Investments

 
 

 

   
Statement of
   
Cash Flows
Year Ended February 29, 2012

   
Insured California
Premium Income
(NPC
)
Insured California
Premium Income 2
(NCL
)
California
Premium Income
(NCU
)
Cash Flows from Operating Activities:
                   
Net Increase (Decrease) In Net Assets Applicable to Common Shares from Operations
 
$
20,803,313
 
$
40,609,338
 
$
18,465,358
 
Adjustments to reconcile the net increase (decrease) in net assets applicable to Common shares from operations to net cash provided by (used in) operating activities:
                   
Purchases of investments
   
(12,983,889
)
 
(12,024,117
)
 
(16,847,836
)
Proceeds from sales and maturities of investments
   
18,528,716
   
16,165,459
   
19,281,830
 
Proceeds from (Payments for) forward swap contracts, net
   
   
(346,971
)
 
 
Amortization (Accretion) of premiums and discounts, net
   
391,594
   
(490,055
)
 
(224,862
)
(Increase) Decrease in:
                   
Receivable for interest
   
63,056
   
99,017
   
31,830
 
Receivable for investments sold
   
   
(2,214,626
)
 
(2,350,000
)
Other assets
   
608
   
(8,162
)
 
10,994
 
Increase (Decrease) in:
                   
Payable for Auction Rate Preferred Share dividends
   
   
   
 
Payable for interest
   
   
   
1,951
 
Payable for investments purchased
   
   
   
503,450
 
Accrued management fees
   
9,228
   
18,194
   
8,474
 
Accrued other expenses
   
379,611
   
312,186
   
17,693
 
Net realized (gain) loss from:
                   
Investments
   
(872,050
)
 
(750,538
)
 
69,508
 
Forward swaps
   
   
346,971
   
 
Change in net unrealized (appreciation) depreciation of:
                   
Investments
   
(14,571,360
)
 
(29,265,714
)
 
(13,699,675
)
Forward swaps
   
   
(15,872
)
 
 
Taxes paid on undistributed capital gains
   
(10,023
)
 
(6,394
)
 
(528
)
Net cash provided by (used in) operating activities
   
11,738,804
   
12,428,716
   
5,268,187
 
Cash Flows from Financing Activities:
                   
(Increase) Decrease in deferred offering costs
   
28,701
   
20,997
   
171,163
 
Increase (Decrease) in:
                   
Cash overdraft balance
   
(400,154
)
 
   
 
Payable for offering costs
   
(185,071
)
 
(209,163
)
 
(109,428
)
MTP Shares, at liquidation value
   
   
   
 
VRDP Shares, at liquidation value
   
   
   
 
ARPS, at liquidation value
   
   
   
 
Cash distributions paid to Common shareholders
   
(6,142,223
)
 
(11,207,831
)
 
(4,980,304
)
Net cash provided by (used in) financing activities
   
(6,698,747
)
 
(11,395,997
)
 
(4,918,569
)
Net Increase (Decrease) in Cash
   
5,040,057
   
1,032,719
   
349,618
 
Cash at the beginning of period
   
   
689,146
   
681,598
 
Cash at the End of Period
 
$
5,040,057
 
$
1,721,865
 
$
1,031,216
 
 
Supplemental Disclosure of Cash Flow Information
Non-cash financing activities not included herein consist of reinvestments of Common share distributions as follows:
                     
   
Insured California
 
Insured California
 
California
 
   
Premium Income
 
Premium Income 2
 
Premium Income
 
     
(NPC
)
 
(NCL
)
 
(NCU
)
   
$
113,629
 
$
101,875
 
$
 
 
Cash paid for interest (excluding amortization of offering costs) was as follows:
                     
   
Insured California
 
Insured California
 
California
 
   
Premium Income
 
Premium Income 2
 
Premium Income
 
     
(NPC
)
 
(NCL
)
 
(NCU
)
   
$
134,849
 
$
342,076
 
$
741,348
 
 
See accompanying notes to financial statements.
 
Nuveen Investments
 
83

 
 

 

   
Statement of
   
Cash Flows (continued)

   
California Dividend
 
California Dividend
 
California Dividend
 
   
Advantage
 
Advantage 2
 
Advantage 3
 
     
(NAC
)
 
(NVX
)
 
(NZH
)
Cash Flows from Operating Activities:
                   
Net Increase (Decrease) In Net Assets Applicable to Common Shares from Operations
 
$
72,981,037
 
$
43,956,196
 
$
64,832,634
 
Adjustments to reconcile the net increase (decrease) in net assets applicable to Common shares from operations to net cash provided by (used in) operating activities:
                   
Purchases of investments
   
(62,499,012
)
 
(36,098,754
)
 
(81,633,691
)
Proceeds from sales and maturities of investments
   
64,252,705
   
38,147,419
   
83,209,836
 
Proceeds from (Payments for) forward swap contracts, net
   
   
   
 
Amortization (Accretion) of premiums and discounts, net
   
(1,986,095
)
 
(727,019
)
 
(1,192,373
)
(Increase) Decrease in:
                   
Receivable for interest
   
(31,486
)
 
(138,619
)
 
(310,631
)
Receivable for investments sold
   
5,439,776
   
   
3,393,955
 
Other assets
   
(38,623
)
 
28,930
   
80,600
 
Increase (Decrease) in:
                   
Payable for Auction Rate Preferred Share dividends
   
(3,082
)
 
(4,536
)
 
(8,496
)
Payable for interest
   
   
89,855
   
151,423
 
Payable for investments purchased
   
(1,955,060
)
 
1,345,900
   
19,356
 
Accrued management fees
   
30,942
   
31,514
   
45,953
 
Accrued other expenses
   
19,279
   
(526
)
 
(11,311
)
Net realized (gain) loss from:
                   
Investments
   
4,191,786
   
1,141,813
   
5,120,796
 
Forward swaps
   
   
   
 
Change in net unrealized (appreciation) depreciation of:
                   
Investments
   
(55,341,444
)
 
(31,781,569
)
 
(50,296,977
)
Forward swaps
   
   
   
 
Taxes paid on undistributed capital gains
   
(742
)
 
(1,782
)
 
(1,609
)
Net cash provided by (used in) operating activities
   
25,059,981
   
15,988,822
   
23,399,465
 
Cash Flows from Financing Activities:
                   
(Increase) Decrease in deferred offering costs
   
(635,430
)
 
(392,849
)
 
(859,977
)
Increase (Decrease) in:
                   
Cash overdraft balance
   
(2,056,012
)
 
   
 
Payable for offering costs
   
38,004
   
(32,967
)
 
111,504
 
MTP Shares, at liquidation value
   
   
42,846,300
   
73,294,500
 
VRDP Shares, at liquidation value
   
136,200,000
   
   
 
ARPS, at liquidation value
   
(135,525,000
)
 
(39,950,000
)
 
(69,500,000
)
Cash distributions paid to Common shareholders
   
(21,341,423
)
 
(14,154,605
)
 
(21,546,243
)
Net cash provided by (used in) financing activities
   
(23,319,861
)
 
(11,684,121
)
 
(18,500,216
)
Net Increase (Decrease) in Cash
   
1,740,120
   
4,304,701
   
4,899,249
 
Cash at the beginning of period
   
   
382,339
   
920,769
 
Cash at the End of Period
 
$
1,740,120
 
$
4,687,040
 
$
5,820,018
 

Supplemental Disclosure of Cash Flow Information
Non-cash financing activities not included herein consist of reinvestments of Common share distributions as follows:

   
California Dividend
 
California Dividend
 
California Dividend
 
   
Advantage
 
Advantage 2
 
Advantage 3
 
     
(NAC
)
 
(NVX
)
 
(NZH
)
   
$
42,394
 
$
 
$
151,583
 
 
Cash paid for interest (excluding amortization of offering costs) was as follows:

   
California Dividend
 
California Dividend
 
California Dividend
 
   
Advantage
 
Advantage 2
 
Advantage 3
 
     
(NAC
)
 
(NVX
)
 
(NZH
)
   
$
432,152
 
$
2,053,192
 
$
3,755,590
 
 
See accompanying notes to financial statements.
 
84
 
Nuveen Investments

 
 

 

     
Insured California
   
Insured California
 
     
Dividend Advantage
   
Tax-Free Advantage
 
     
(NKL
)
 
(NKX
)
Cash Flows from Operating Activities:
             
Net Increase (Decrease) In Net Assets Applicable to Common Shares from Operations
 
$
50,291,641
 
$
16,089,503
 
Adjustments to reconcile the net increase (decrease) in net assets applicable to Common shares from operations to net cash provided by (used in) operating activities:
             
Purchases of investments
   
(43,559,316
)
 
(7,965,183
)
Proceeds from sales and maturities of investments
   
46,057,683
   
7,893,115
 
Proceeds from (Payments for) forward swap contracts, net
   
   
 
Amortization (Accretion) of premiums and discounts, net
   
(2,565,685
)
 
(483,911
)
(Increase) Decrease in:
             
Receivable for interest
   
205,983
   
17,920
 
Receivable for investments sold
   
(1,792,434
)
 
 
Other assets
   
(56,175
)
 
(582
)
Increase (Decrease) in:
             
Payable for Auction Rate Preferred Share dividends
   
(4,345
)
 
 
Payable for interest
   
   
 
Payable for investments purchased
   
   
 
Accrued management fees
   
32,161
   
7,656
 
Accrued other expenses
   
23,851
   
143,037
 
Net realized (gain) loss from:
             
Investments
   
(1,662,629
)
 
(29,958
)
Forward swaps
   
   
 
Change in net unrealized (appreciation) depreciation of:
             
Investments
   
(33,515,295
)
 
(11,150,968
)
Forward swaps
   
   
 
Taxes paid on undistributed capital gains
   
(575
)
 
(4,340
)
Net cash provided by (used in) operating activities
   
13,454,865
   
4,516,289
 
Cash Flows from Financing Activities:
             
(Increase) Decrease in deferred offering costs
   
(567,000
)
 
16,944
 
Increase (Decrease) in:
             
Cash overdraft balance
   
   
 
Payable for offering costs
   
33,247
   
(71,729
)
MTP Shares, at liquidation value
   
   
 
VRDP Shares, at liquidation value
   
104,400,000
   
 
ARPS, at liquidation value
   
(103,750,000
)
 
 
Cash distributions paid to Common shareholders
   
(14,644,799
)
 
(4,830,297
)
Net cash provided by (used in) financing activities
   
(14,528,552
)
 
(4,885,082
)
Net Increase (Decrease) in Cash
   
(1,073,687
)
 
(368,793
)
Cash at the beginning of period
   
1,572,377
   
737,024
 
Cash at the End of Period
 
$
498,690
 
$
368,231
 
 
Supplemental Disclosure of Cash Flow Information
Non-cash financing activities not included herein consist of reinvestments of Common share distributions as follows:
               
   
Insured California
 
Insured California
 
   
Dividend Advantage
 
Tax-Free Advantage
 
     
(NKL
)
 
(NKX
)
   
$
145,163
 
$
23,555
 
 
Cash paid for interest (excluding amortization of offering costs) was as follows:
 
   
Insured California
 
Insured California
 
   
Dividend Advantage
 
Tax-Free Advantage
 
     
(NKL
)
 
(NKX
)
   
$
244,870
 
$
123,235
 
 
See accompanying notes to financial statements.
 
Nuveen Investments
 
85
 
 
 

 

   
Financial
   
Highlights
     
  Selected data for a Common share outstanding throughout each period:
 
       
Investment Operations
 
Less Distributions
             
   
Beginning
Common Share
Net Asset
Value
 
Net
Investment
Income (Loss)
 
Net
Realized/
Unrealized Gain (Loss)
 
Distributions
from Net
Investment
Income to
Auction Rate
Preferred
Shareholders
(a)
Distributions
from
Capital
Gains to
Auction Rate
Preferred
Shareholders
(a)
Total
 
Net
Investment
Income to Common Share- holders
 
Capital Gains to Common Share- holders
 
Total
 
Discount from Common Shares
Repurchased and
Retired
 
Ending
Common Share
Net Asset
Value
 
Ending Market
Value
 
Insured California Premium Income (NPC)
                                 
Year Ended 2/28-2/29:
                                                       
2012
 
$
13.63
 
$
.83
 
$
2.41
 
$
 
$
 
$
3.24
 
$
(.88
)
$
(.10
)
$
(.98
)
$
 
$
15.89
 
$
16.06
 
2011
   
14.74
   
.88
   
(1.10
)
 
**
 
   
(.22
)
 
(.86
)
 
(.03
)
 
(.89
)
 
   
13.63
   
13.26
 
2010
   
14.03
   
.96
   
.55
   
(.03
)
 
(.02
)
 
1.46
   
(.75
)
 
   
(.75
)
 
**
 
14.74
   
13.30
 
2009(f)
   
14.93
   
.47
   
(.74
)
 
(.11
)
 
(.02
)
 
(.40
)
 
(.36
)
 
(.14
)
 
(.50
)
 
**
 
14.03
   
12.04
 
Year Ended 8/31:
                                                                   
2008
   
15.04
   
.95
   
(.10
)
 
(.22
)
 
**
 
.63
   
(.73
)
 
(.01
)
 
(.74
)
 
   
14.93
   
13.89
 
2007
   
15.58
   
.90
   
(.40
)
 
(.21
)
 
(.02
)
 
.27
   
(.73
)
 
(.08
)
 
(.81
)
 
   
15.04
   
14.96
 
                                                                           
Insured California Premium Income 2 (NCL)
                                                     
Year Ended 2/28-2/29:
                                                             
2012
   
13.06
   
.86
   
2.35
   
   
   
3.21
   
(.90
)
 
   
(.90
)
 
   
15.37
   
15.76
 
2011
   
13.99
   
.91
   
(.96
)
 
(.02
)
 
   
(.07
)
 
(.86
)
 
   
(.86
)
 
**
 
13.06
   
12.45
 
2010
   
12.85
   
.98
   
.99
   
(.03
)
 
(.02
)
 
1.92
   
(.78
)
 
   
(.78
)
 
**
 
13.99
   
12.72
 
2009(f)
   
14.13
   
.44
   
(1.12
)
 
(.10
)
 
(.02
)
 
(.80
)
 
(.34
)
 
(.14
)
 
(.48
)
 
**
 
12.85
   
10.89
 
Year Ended 8/31:
                                                                   
2008
   
14.50
   
.95
   
(.44
)
 
(.24
)
 
   
.27
   
(.64
)
 
   
(.64
)
 
   
14.13
   
12.66
 
2007
   
14.99
   
.89
   
(.46
)
 
(.25
)
 
   
.18
   
(.67
)
 
   
(.67
)
 
   
14.50
   
13.71
 
 
(a)
The amounts shown are based on Common share equivalents.
(b)
Total Return Based on Market Value is the combination of changes in the market price per share and the effect of reinvested dividend income and reinvested capital gains distributions, if any, at the average price paid per share at the time of reinvestment. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending market price. The actual reinvestment for the last dividend declared in the period may take place over several days, and in some instances may not be based on the market price, so the actual reinvestment price may be different from the price used in the calculation. Total returns are not annualized.
 
Total Return Based on Common Share Net Asset Value is the combination of changes in Common share net asset value, reinvested dividend income at net asset value and reinvested capital gains distributions at net asset value, if any. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending net asset value. The actual reinvest price for the last dividend declared in the period may often be based on the Fund’s market price (and not its net asset value), and therefore may be different from the price used in the calculation. Total returns are not annualized.
 
86
 
Nuveen Investments

 
 

 

 
 
 
Ratios/Supplemental Data
 
 
Total Returns
     
Ratios to Average Net Assets
Applicable to Common Shares(c)(d)
     
                         
 
Based
on
Market
Value
(b)
Based
on
Common
Share Net
Asset
Value
(b)
Ending
Net
Assets
Applicable
to Common
Shares (000
)
Expenses
(e)
Net
Investment
Income (Loss
)
Portfolio
Turnover
Rate
 
                                   
                                   
 
29.53
%
 
24.47
%
$
102,481
   
2.13
%
 
5.65
%
 
10
%
 
6.29
   
(1.75
)
 
87,827
   
1.77
   
6.03
   
6
 
 
17.13
   
10.66
   
94,944
   
1.19
   
6.68
   
10
 
 
(9.25
)
 
(2.43
)
 
90,531
   
1.27
 
6.88
*
 
1
 
                                   
 
(2.21
)
 
4.23
   
96,462
   
1.19
   
6.24
   
17
 
 
4.61
   
1.70
   
97,176
   
1.22
   
5.84
   
9
 
                                   
                                   
 
35.03
   
25.33
   
194,712
   
1.78
   
6.10
   
5
 
 
4.38
   
(.72
)
 
165,359
   
1.29
   
6.53
   
26
 
 
24.41
   
15.35
   
177,169
   
1.27
   
7.25
   
7
 
 
(9.95
)
 
(5.40
)
 
162,831
   
1.53
 
7.15
*
 
9
 
                                   
 
(3.06
)
 
1.86
   
179,734
   
1.23
   
6.56
   
12
 
 
1.26
   
1.18
   
184,343
   
1.24
   
6.00
   
19
 
 
(c)
Ratios do not reflect the effect of dividend payments to Auction Rate Preferred shareholders, where applicable; Net Investment Income (Loss) ratios reflect income earned and expenses incurred on assets attributable to ARPS and/or VRDP Shares, where applicable.
(d)
Ratios do not reflect the effect of custodian fee credits earned on the Fund’s net cash on deposit with the custodian bank, where applicable.
(e)
The expense ratios reflect, among other things, all interest expense and other costs related to VRDP Shares and/or the interest expense deemed to have been paid by the Fund on the floating rate certificates issued by the special purpose trusts for the self-deposited inverse floaters held by the Fund, where applicable, both as described in Footnote 1 – General Information and Significant Accounting Policies, Variable Rate Demand Preferred Shares and Inverse Floating Rate Securities, respectively, as follows:
 
Insured California Premium Income (NPC)
       
Year Ended 2/28-2/29:
       
2012
   
.68
%
2011
   
.60
 
2010
   
 
2009(f)
   
*
Year Ended 8/31:
       
2008
   
 
2007
   
.06
 
         
Insured California Premium Income 2 (NCL)
       
Year Ended 2/28-2/29:
       
2012
   
.57
 
2011
   
.17
 
2010
   
.09
 
2009(f)
   
.29
*
Year Ended 8/31:
       
2008
   
.02
 
2007
   
.06
 
 
(f)
For the six months ended February 28, 2009.
*
Annualized.
**
Rounds to less than $.01 per share.

See accompanying notes to financial statements.
     
Nuveen Investments
 
87

 
 

 

   
Financial
   
Highlights (continued)
     
  Selected data for a Common share outstanding throughout each period:
 
         
Investment Operations
 
Less Distributions
                   
   
Beginning
Common
Share
Net Asset
Value
 
Net
Investment
Income
(Loss)
 
Net
Realized/
Unrealized
Gain (Loss)
 
Distributions
from Net
Investment
Income to
Auction Rate
Preferred
Shareholders
(a)
Distributions
from
Capital
Gains to
Auction Rate
Preferred
Shareholders
(a)
Total
 
Net
Investment
Income to
Common
Share-
holders
 
Capital
Gains to
Common
Share-
holders
 
Total
 
Discount
from
Common
Shares
Repurchased
and
Retired
 
Ending
Common
Share
Net Asset
Value
 
Ending
Market
Value
 
California Premium Income (NCU)
                                                 
Year Ended 2/28-2/29:
                                                       
2012
 
$
12.96
 
$
.84
 
$
2.38
 
$
 
$
 
$
3.22
 
$
(.87
)
$
 
$
(.87
)
$
 
$
15.31
 
$
15.15
 
2011
   
13.71
   
.92
   
(.79
)
 
(.02
)
 
   
.11
   
(.86
)
 
   
(.86
)
 
**
 
12.96
   
12.28
 
2010
   
12.37
   
.95
   
1.13
   
(.03
)
 
   
2.05
   
(.72
)
 
   
(.72
)
 
.01
   
13.71
   
12.11
 
2009(f)
   
13.67
   
.43
   
(1.29
)
 
(.10
)
 
**
 
(.96
)
 
(.33
)
 
(.01
)
 
(.34
)
 
**
 
12.37
   
10.06
 
Year Ended 8/31:
                                                                 
2008
   
14.06
   
.92
   
(.43
)
 
(.24
)
 
   
.25
   
(.64
)
 
   
(.64
)
 
   
13.67
   
12.58
 
2007
   
14.63
   
.90
   
(.52
)
 
(.24
)
 
(.01
)
 
.13
   
(.67
)
 
(.03
)
 
(.70
)
 
   
14.06
   
13.03
 
                                                                           
California Dividend Advantage (NAC)
                                                 
Year Ended 2/28-2/29:
                                                       
2012
   
12.68
   
.94
   
2.17
   
(.01
)
 
   
3.10
   
(.91
)
 
   
(.91
)
 
   
14.87
   
15.14
 
2011
   
13.88
   
.98
   
(1.27
)
 
(.02
)
 
   
(.31
)
 
(.89
)
 
   
(.89
)
 
   
12.68
   
12.20
 
2010
   
12.10
   
1.01
   
1.63
   
(.03
)
 
(.02
)
 
2.59
   
(.81
)
 
   
(.81
)
 
   
13.88
   
12.60
 
2009(f)
   
14.43
   
.49
   
(2.07
)
 
(.09
)
 
(.02
)
 
(1.69
)
 
(.38
)
 
(.26
)
 
(.64
)
 
   
12.10
   
10.82
 
Year Ended 8/31:
                                                                 
2008
   
14.93
   
1.02
   
(.50
)
 
(.23
)
 
(.01
)
 
.28
   
(.74
)
 
(.04
)
 
(.78
)
 
   
14.43
   
13.44
 
2007
   
15.59
   
1.00
   
(.56
)
 
(.24
)
 
(.01
)
 
.19
   
(.80
)
 
(.05
)
 
(.85
)
 
   
14.93
   
14.34
 
 
(a)
The amounts shown are based on Common share equivalents.
(b)
Total Return Based on Market Value is the combination of changes in the market price per share and the effect of reinvested dividend income and reinvested capital gains distributions, if any, at the average price paid per share at the time of reinvestment. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending market price. The actual reinvestment for the last dividend declared in the period may take place over several days, and in some instances may not be based on the market price, so the actual reinvestment price may be different from the price used in the calculation. Total returns are not annualized.
 
Total Return Based on Common Share Net Asset Value is the combination of changes in Common share net asset value, reinvested dividend income at net asset value and reinvested capital gains distributions at net asset value, if any. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending net asset value. The actual reinvest price for the last dividend declared in the period may often be based on the Fund’s market price (and not its net asset value), and therefore may be different from the price used in the calculation. Total returns are not annualized.
 
88
 
Nuveen Investments

 
 

 


         
Ratios/Supplemental Data
 
 
Total Returns
     
Ratios to Average Net Assets
Applicable to Common Shares
Before Reimbursement(c)
 
Ratios to Average Net Assets
Applicable to Common Shares
After Reimbursement(c)(d)
     
                                 
 
Based
on
Market
Value
(b)
Based
on
Common
Share Net
Asset
Value
(b)
Ending
Net
Assets
Applicable
to Common
Shares (000
)
Expenses
(e)
Net
Investment
Income (Loss
)
Expenses
(e)
Net
Investment
Income (Loss
)
Portfolio
Turnover
Rate
 
                                               
                                               
 
31.68
%
 
25.65
%
$
87,755
   
2.29
%
 
6.02
%
 
N/A
   
N/A
   
14
%
 
8.34
   
.63
   
74,275
   
1.69
   
6.66
   
N/A
   
N/A
   
5
 
 
28.13
   
17.06
   
78,581
   
1.30
   
7.18
   
N/A
   
N/A
   
10
 
 
(17.22
)
 
(6.92
)
 
71,260
   
1.57
*
 
7.06
*
 
N/A
   
N/A
   
14
 
                                               
 
1.51
   
1.81
   
78,966
   
1.34
   
6.56
   
N/A
   
N/A
   
5
 
 
(2.21
)
 
.82
   
81,200
   
1.29
   
6.14
   
N/A
   
N/A
   
11
 
                                               
                                               
 
32.82
   
25.30
   
349,203
   
1.50
   
6.84
   
N/A
   
N/A
   
13
 
 
3.54
   
(2.57
)
 
297,629
   
1.18
   
7.18
   
N/A
   
N/A
   
20
 
 
24.62
   
21.97
   
325,791
   
1.21
   
7.63
   
1.18
%
 
7.66
%
 
4
 
 
(14.14
)
 
(11.45
)
 
284,221
   
1.31
*
 
7.92
*
 
1.24
*
 
7.99
*
 
14
 
                                               
 
(.84
)
 
1.85
   
338,732
   
1.26
   
6.77
   
1.11
   
6.92
   
19
 
 
(5.19
)
 
1.16
   
350,523
   
1.17
   
6.24
   
.95
   
6.46
   
20
 
 
(c)
Ratios do not reflect the effect of dividend payments to Auction Rate Preferred shareholders, where applicable; Net Investment Income (Loss) ratios reflect income earned and expenses incurred on assets attributable to ARPS, MTP Shares and/or VRDP Shares, where applicable.
(d)
After expense reimbursement from the Adviser, where applicable. Ratios do not reflect the effect of custodian fee credits earned on the Fund’s net cash on deposit with the custodian bank, where applicable. As of July 31, 2009, the Adviser is no longer reimbursing California Dividend Advantage (NAC) for any fees or expenses.
(e)
The expense ratios reflect, among other things, all interest expense and other costs related to MTP Shares, VRDP Shares and/or the interest expense deemed to have been paid by the Fund on the floating rate certificates issued by the special purpose trusts for the self-deposited inverse floaters held by the Fund, where applicable, each as described in Footnote 1 – General Information and Significant Accounting Policies, MuniFund Term Preferred Shares, Variable Rate Demand Preferred Shares and Inverse Floating Rate Securities, respectively, as follows:
 
California Premium Income (NCU)
       
Year Ended 2/28-2/29:
       
2012
   
1.14
%
2011
   
.55
 
2010
   
.06
 
2009(f)
   
.20
*
Year Ended 8/31:
       
2008
   
.11
 
2007
   
.08
 
         
California Dividend Advantage (NAC)
       
Year Ended 2/28-2/29:
       
2012
   
.46
 
2011
   
.06
 
2010
   
.08
 
2009(f)
   
.14
*
Year Ended 8/31:
       
2008
   
.11
 
2007
   
.05
 
 
(f)
For the six months ended February 28, 2009.
*
Annualized.
**
Rounds to less than $.01 per share.
N/A Fund did not have, or no longer has, a contractual reimbursement agreement with the Adviser.
 
See accompanying notes to financial statements.
     
Nuveen Investments
 
89

 
 

 

   
Financial
   
Highlights (continued)
     
  Selected data for a Common share outstanding throughout each period:

       
Investment Operations
 
Less Distributions
             
   
Beginning
Common
Share
Net Asset
Value
 
Net
Investment
Income
(Loss
)
Net
Realized/
Unrealized
Gain (Loss
)
Distributions
from Net
Investment
Income to
Auction Rate
Preferred
Shareholders
(a)
Distributions
from
Capital
Gains to
Auction Rate
Preferred
Shareholders
(a)
Total
 
Net
Investment
Income to
Common
Share-
holders
 
Capital
Gains to
Common
Share-
holders
 
Total
 
Discount
from
Common
Shares
Repurchased
and
Retired
 
Ending
Common
Share
Net Asset
Value
 
Ending
Market
Value
 
California Dividend Advantage 2 (NVX)
                                                 
Year Ended 2/28-2/29:
                                                 
2012
 
$
13.47
 
$
.90
 
$
2.08
 
$
**
$
 
$
2.98
 
$
(.96
)
$
 
$
(.96
)
$
 
$
15.49
 
$
15.58
 
2011
   
14.49
   
1.03
   
(1.07
)
 
(.02
)
 
   
(.06
)
 
(.96
)
 
   
(.96
)
 
   
13.47
   
12.83
 
2010
   
12.91
   
1.07
   
1.43
   
(.04
)
 
   
2.46
   
(.88
)
 
   
(.88
)
 
**   
14.49
   
13.56
 
2009(f)
   
14.39
   
.51
   
(1.47
)
 
(.11
)
 
(.01
)
 
(1.08
)
 
(.36
)
 
(.04
)
 
(.40
)
 
**   
12.91
   
10.51
 
Year Ended 8/31:
                                                                   
2008
   
14.69
   
1.01
   
(.37
)
 
(.25
)
 
   
.39
   
(.69
)
 
   
(.69
)
 
   
14.39
   
12.67
 
2007
   
15.36
   
.96
   
(.62
)
 
(.25
)
 
   
.09
   
(.76
)
 
   
(.76
)
 
   
14.69
   
13.73
 
                                                                           
California Dividend Advantage 3 (NZH)
                                                 
Year Ended 2/28-2/29:
                                                 
2012
   
12.13
   
.82
   
1.86
   
**
 
   
2.68
   
(.90
)
 
   
(.90
)
 
   
13.91
   
14.35
 
2011
   
13.18
   
.88
   
(1.02
)
 
(.01
)
 
   
(.15
)
 
(.90
)
 
   
(.90
)
 
   
12.13
   
11.67
 
2010
   
11.53
   
.98
   
1.53
   
(.03
)
 
   
2.48
   
(.83
)
 
   
(.83
)
 
   
13.18
   
12.67
 
2009(f)
   
13.62
   
.50
   
(2.13
)
 
(.09
)
 
   
(1.72
)
 
(.37
)
 
   
(.37
)
 
**   
11.53
   
10.23
 
Year Ended 8/31:
                                                                   
2008
   
14.25
   
1.03
   
(.70
)
 
(.25
)
 
   
.08
   
(.71
)
 
   
(.71
)
 
   
13.62
   
12.87
 
2007
   
15.03
   
.98
   
(.73
)
 
(.27
)
 
   
(.02
)
 
(.76
)
 
   
(.76
)
 
   
14.25
   
13.52
 
 
(a)
The amounts shown are based on Common share equivalents.
(b)
Total Return Based on Market Value is the combination of changes in the market price per share and the effect of reinvested dividend income and reinvested capital gains distributions, if any, at the average price paid per share at the time of reinvestment. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending market price. The actual reinvestment for the last dividend declared in the period may take place over several days, and in some instances may not be based on the market price, so the actual reinvestment price may be different from the price used in the calculation. Total returns are not annualized.
 
Total Return Based on Common Share Net Asset Value is the combination of changes in Common share net asset value, reinvested dividend income at net asset value and reinvested capital gains distributions at net asset value, if any. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending net asset value. The actual reinvest price for the last dividend declared in the period may often be based on the Fund’s market price (and not its net asset value), and therefore may be different from the price used in the calculation. Total returns are not annualized.
 
90
 
Nuveen Investments

 
 

 

         
Ratios/Supplemental Data
 
 
Total Returns
     
Ratios to Average Net Assets
Applicable to Common Shares
Before Reimbursement(c)
 
Ratios to Average Net Assets
Applicable to Common Shares
After Reimbursement(c)(d)
     
                                 
 
Based
on
Market
Value
(b)
Based
on
Common
Share Net
Asset
Value
(b)
Ending
Net
Assets
Applicable
to Common
Shares (000
)
Expenses
(e)
Net
Investment
Income (Loss
)
Expenses
(e)
Net
Investment
Income (Loss
)
Portfolio
Turnover
Rate
 
                                 
                                               
 
30.01
%
 
22.90
%
$
228,474
   
2.30
%
 
6.29
%
 
2.30
%
 
6.30
%
 
12
%
 
1.37
   
(.64
)
 
198,675
   
1.36
   
7.10
   
1.28
   
7.19
   
13
 
 
38.29
   
19.52
   
213,687
   
1.20
   
7.58
   
1.04
   
7.74
   
4
 
 
(13.83
)
 
(7.40
)
 
190,824
   
1.37
*
 
7.85
*
 
1.14
*
 
8.08
*
 
7
 
                                               
 
(2.80
)
 
2.76
   
212,890
   
1.25
   
6.56
   
.99
   
6.83
   
20
 
 
(3.39
)
 
.46
   
217,332
   
1.25
   
5.97
   
.91
   
6.31
   
21
 
                                               
                                               
 
31.93
   
22.89
   
335,830
   
2.56
   
6.28
   
2.52
   
6.33
   
18
 
 
(1.21
)
 
(1.40
)
 
292,563
   
2.07
   
6.61
   
1.94
   
6.74
   
16
 
 
32.93
   
22.17
   
317,860
   
1.36
   
7.68
   
1.16
   
7.88
   
6
 
 
(17.58
)
 
(12.54
)
 
278,056
   
1.39
*
 
8.50
*
 
1.13
*
 
8.75
*
 
9
 
                                               
 
.46
   
.60
   
328,659
   
1.21
   
6.96
   
.90
   
7.27
   
23
 
 
(4.12
)
 
(.32
)
 
343,806
   
1.22
   
6.16
   
.83
   
6.54
   
23
 
 
(c)
Ratios do not reflect the effect of dividend payments to Auction Rate Preferred shareholders, where applicable; Net Investment Income (Loss) ratios reflect income earned and expenses incurred on assets attributable to ARPS and/or MTP Shares, where applicable.
(d)
After expense reimbursement from the Adviser, where applicable. Ratios do not reflect the effect of custodian fee credits earned on the Fund’s net cash on deposit with the custodian bank, where applicable. As of March 31, 2011 and September 30, 2011, the Adviser is no longer reimbursing California Dividend Advantage 2 (NVX) and California Dividend Advantage 3 (NZH), respectively, for any fees or expenses.
(e)
The expense ratios reflect, among other things, all interest expense and other costs related to MTP Shares and/or the interest expense deemed to have been paid by the Fund on the floating rate certificates issued by the special purpose trusts for the self-deposited inverse floaters held by the Fund, where applicable, both as described in Footnote 1 – General Information and Significant Accounting Polices, MuniFund Term Preferred Shares and Inverse Floating Rate Securities, respectively, as follows:
 
California Dividend Advantage 2 (NVX)
       
Year Ended 2/28-2/29:
       
2012
   
1.25
%
2011
   
.26
 
2010
   
.04
 
2009(f)
   
.05
*
Year Ended 8/31:
       
2008
   
.09
 
2007
   
.08
 
         
California Dividend Advantage 3 (NZH)
       
Year Ended 2/28-2/29:
       
2012
   
1.49
 
2011
   
.94
 
2010
   
.19
 
2009(f)
   
.12
*
Year Ended 8/31:
       
2008
   
.02
 
2007
   
.06
 
 
(f)
For the six months ended February 28, 2009.
*
Annualized.
**
Rounds to less than $.01 per share.
 
See accompanying notes to financial statements.
     
Nuveen Investments
 
91

 
 

 

   
Financial
   
Highlights (continued)
     
  Selected data for a Common share outstanding throughout each period:

       
Investment Operations
 
Less Distributions
             
   
Beginning
Common
Share
Net Asset
Value
 
Net
Investment
Income
(Loss
)
Net
Realized/
Unrealized
Gain (Loss
)
Distributions
from Net
Investment
Income to
Auction Rate
Preferred
Shareholders
(a)
Distributions
from
Capital
Gains to
Auction Rate
Preferred
Shareholders
(a)
Total
 
Net
Investment
Income to
Common
Share-
holders
 
Capital
Gains to
Common
Share-
holders
 
Total
 
Discount
from
Common
Shares
Repurchased
and
Retired
 
Ending
Common
Share
Net Asset
Value
 
Ending
Market
Value
 
Insured California Dividend Advantage (NKL)
                                           
Year Ended 2/28-2/29:
                                                       
2012
 
$
13.70
 
$
1.00
 
$
2.30
 
$
(.01
)
$
 
$
3.29
 
$
(.97
)
$
 
$
(.97
)
$
 
$
16.02
 
$
16.42
 
2011
   
14.71
   
1.04
   
(1.09
)
 
(.03
)
 
   
(.08
)
 
(.93
)
 
   
(.93
)
 
   
13.70
   
13.02
 
2010
   
13.52
   
1.06
   
1.01
   
(.04
)
 
   
2.03
   
(.84
)
 
   
(.84
)
 
**
 
14.71
   
13.66
 
2009(f)
   
14.61
   
.50
   
(1.07
)
 
(.10
)
 
(.01
)
 
(.68
)
 
(.37
)
 
(.04
)
 
(.41
)
 
**
 
13.52
   
11.16
 
Year Ended 8/31:
                                                             
2008
   
14.91
   
1.03
   
(.33
)
 
(.25
)
 
(.01
)
 
.44
   
(.72
)
 
(.02
)
 
(.74
)
 
   
14.61
   
13.50
 
2007
   
15.50
   
1.01
   
(.57
)
 
(.26
)
 
**
 
.18
   
(.77
)
 
**
 
(.77
)
 
   
14.91
   
14.24
 
                                                                           
Insured California Tax-Free Advantage (NKX)
                                               
Year Ended 2/28-2/29:
                                                 
2012
   
12.82
   
.83
   
1.91
   
   
   
2.74
   
(.83
)
 
   
(.83
)
 
   
14.73
   
15.06
 
2011
   
14.03
   
.81
   
(1.22
)
 
   
   
(.41
)
 
(.80
)
 
   
(.80
)
 
   
12.82
   
11.78
 
2010
   
12.85
   
.85
   
1.09
   
   
   
1.94
   
(.76
)
 
   
(.76
)
 
   
14.03
   
12.87
 
2009(f)
   
14.19
   
.39
   
(1.32
)
 
**
 
(.01
)
 
(.94
)
 
(.35
)
 
(.05
)
 
(.40
)
 
   
12.85
   
11.75
 
Year Ended 8/31:
                                                             
2008
   
14.47
   
.97
   
(.30
)
 
(.24
)
 
   
.43
   
(.71
)
 
   
(.71
)
 
   
14.19
   
13.78
 
2007
   
14.92
   
.96
   
(.46
)
 
(.24
)
 
   
.26
   
(.71
)
 
   
(.71
)
 
   
14.47
   
14.47
 
 
(a)
The amounts shown are based on Common share equivalents.
(b)
Total Return Based on Market Value is the combination of changes in the market price per share and the effect of reinvested dividend income and reinvested capital gains distributions, if any, at the average price paid per share at the time of reinvestment. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending market price. The actual reinvestment for the last dividend declared in the period may take place over several days, and in some instances may not be based on the market price, so the actual reinvestment price may be different from the price used in the calculation. Total returns are not annualized.
 
Total Return Based on Common Share Net Asset Value is the combination of changes in Common share net asset value, reinvested dividend income at net asset value and reinvested capital gains distributions at net asset value, if any. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending net asset value. The actual reinvest price for the last dividend declared in the period may often be based on the Fund’s market price (and not its net asset value), and therefore may be different from the price used in the calculation. Total returns are not annualized.
 
92
 
Nuveen Investments

 
 

 
 
         
Ratios/Supplemental Data
 
 
Total Returns
     
Ratios to Average Net Assets
Applicable to Common Shares
Before Reimbursement(c)
 
Ratios to Average Net Assets
Applicable to Common Shares
After Reimbursement(c)(d)
     
                                 
 
Based
on
Market
Value
 
Based
on
Common
Share Net
Asset
Value
(b)
Ending
Net
Assets
Applicable
to Common
Shares (000
)
Expenses
(e)
Net
Investment
Income (Loss
)
Expenses
(e)
Net
Investment
Income (Loss
)
Portfolio
Turnover
Rate
 
                                 
                                               
 
34.78
%
 
24.87
%
$
244,521
   
1.52
%
 
6.70
%
 
1.44
%
 
6.78
%
 
13
%
 
1.81
   
(.75
)
 
208,950
   
1.13
   
6.94
   
.97
   
7.10
   
7
 
 
30.55
   
15.42
   
224,301
   
1.19
   
7.21
   
.95
   
7.45
   
1
 
 
(14.22
)
 
(4.50
)
 
206,467
   
1.32
*
 
7.36
*
 
1.01
*
 
7.67
*
 
3
 
                                               
 
(.03
)
 
2.98
   
223,356
   
1.19
   
6.52
   
.84
   
6.87
   
6
 
 
(4.64
)
 
1.13
   
227,923
   
1.21
   
6.12
   
.79
   
6.54
   
12
 
                                               
                                               
 
36.10
   
21.95
   
86,731
   
1.90
   
6.03
   
N/A
   
N/A
   
7
 
 
(2.71
)
 
(3.18
)
 
75,493
   
2.06
   
5.74
   
1.97
   
5.83
   
8
 
 
16.39
   
15.49
   
82,579
   
1.68
   
6.11
   
1.47
   
6.32
   
***
 
(11.55
)
 
(6.42
)
 
75,661
   
2.57
*
 
5.89
*
 
2.27
*
 
6.19
*
 
3
 
                                               
 
.12
   
2.97
   
83,531
   
1.33
   
6.28
   
.94
   
6.67
   
28
 
 
6.35
   
1.69
   
85,144
   
1.27
   
5.95
   
.79
   
6.43
   
15
 
 
(c)
Ratios do not reflect the effect of dividend payments to Auction Rate Preferred shareholders, where applicable; Net Investment Income (Loss) ratios reflect income earned and expenses incurred on assets attributable to ARPS and/or VRDP Shares, where applicable.
(d)
After expense reimbursement from the Adviser, where applicable. Ratios do not reflect the effect of custodian fee credits earned on the Fund’s net cash on deposit with the custodian bank, where applicable. As of November 30, 2010, the Adviser is no longer reimbursing Insured California Tax-Free Advantage (NKX) for any fees or expenses.
(e)
The expense ratios reflect, among other things, all interest expense and other costs related to VRDP Shares and/or the interest expense deemed to have been paid by the Fund on the floating rate certificates issued by the special purpose trusts for the self-deposited inverse floaters held by the Fund, where applicable, both as described in Footnote 1 – General Information and Significant Accounting Policies, Variable Rate Demand Preferred Shares and Inverse Floating Rate Securities, respectively, as follows:
 
Insured California Dividend Advantage (NKL)
       
Year Ended 2/28-2/29:
       
2012
   
.47
%
2011
   
.02
 
2010
   
.03
 
2009(f)
   
.09
*
Year Ended 8/31:
       
2008
   
 
2007
   
.05
 
         
Insured California Tax-Free Advantage (NKX)
       
Year Ended 2/28-2/29:
       
2012
   
.67
 
2011
   
.92
 
2010
   
.57
 
2009(f)
   
1.03
*
Year Ended 8/31:
       
2008
   
.08
 
2007
   
.06
 
 
(f)
For the six months ended February 28, 2009.
*
Annualized.
**
Rounds to less than $.01 per share.
***
Calculates to less than 1%.
N/A Fund did not have, or no longer has, a contractual reimbursement agreement with the Adviser.
 
See accompanying notes to financial statements.
     
Nuveen Investments
 
93

 
 

 
 
   
Financial
   
Highlights (continued)

   
ARPS at the End of Period
 
VRDP Shares at the End of Period
 
   
Aggregate
Amount
Outstanding
(000
)
Liquidation
Value
Per Share
 
Asset
Coverage
Per Share
 
Aggregate
Amount
Outstanding
(000
)
Liquidation
Value
Per Share
 
Asset
Coverage
Per Share
 
Insured California Premium Income (NPC)
                   
Year Ended 2/28-2/29:
                                     
2012
 
$
 
$
 
$
 
$
42,700
 
$
100,000
 
$
340,002
 
2011
   
   
   
   
42,700
   
100,000
   
305,684
 
2010
   
45,000
   
25,000
   
77,746
   
   
   
 
2009(f)
   
45,000
   
25,000
   
75,295
   
   
   
 
Year Ended 8/31:
                                     
2008
   
45,000
   
25,000
   
78,590
   
   
   
 
2007
   
45,000
   
25,000
   
78,987
   
   
   
 
                                       
Insured California Premium Income 2 (NCL)
                   
Year Ended 2/28-2/29:
                                     
2012
   
   
   
   
74,000
   
100,000
   
363,124
 
2011
   
   
   
   
74,000
   
100,000
   
323,458
 
2010
   
79,825
   
25,000
   
80,487
   
   
   
 
2009(f)
   
79,825
   
25,000
   
75,996
   
   
   
 
Year Ended 8/31:
                                     
2008
   
87,400
   
25,000
   
76,411
   
   
   
 
2007
   
95,000
   
25,000
   
73,511
   
   
   
 

94
 
Nuveen Investments

 
 

 

   
ARPS at the End of Period
 
VRDP Shares at the End of Period
 
MTP Shares at the End of Period (g)
 
   
Aggregate
Amount
Outstanding
(000
)
Liquidation
Value
Per Share
 
Asset
Coverage
Per Share
 
Aggregate
Amount
Outstanding
(000
)
Liquidation
Value
Per Share
 
Asset
Coverage
Per Share
 
Aggregate
Amount
Outstanding
(000
)
Liquidation
Value
Per Share
 
Asset
Coverage
Per Share
 
California Premium Income (NCU)
                                             
Year Ended 2/28-2/29:
                                                       
2012
 
$
 
$
 
$
 
$
 
$
 
$
 
$
35,250
 
$
10.00
 
$
34.90
 
2011
   
   
   
   
   
   
   
35,250
   
10.00
   
31.07
 
2010
   
34,375
   
25,000
   
82,150
   
   
   
   
   
   
 
2009(f)
   
40,875
   
25,000
   
68,584
   
   
   
   
   
   
 
Year Ended 8/31:
                                                       
2008
   
43,000
   
25,000
   
70,910
   
   
   
   
   
   
 
2007
   
43,000
   
25,000
   
72,209
   
   
   
   
   
   
 
                                                         
California Dividend Advantage (NAC)
                                             
Year Ended 2/28-2/29:
                                                       
2012
   
   
   
   
136,200
   
100,000
   
356,390
   
   
   
 
2011
   
135,525
   
25,000
   
79,903
   
   
   
   
   
   
 
2010
   
135,525
   
25,000
   
85,098
   
   
   
   
   
   
 
2009(f)
   
135,525
   
25,000
   
77,430
   
   
   
   
   
   
 
Year Ended 8/31:
                                                 
2008
   
135,525
   
25,000
   
87,485
   
   
   
   
   
   
 
2007
   
175,000
   
25,000
   
75,075
   
   
   
   
   
   
 
 
(f)
For the six months ended February 28, 2009.
(g)
The Ending and Average Market Value Per Share for each Series of the Fund’s MTP Shares were as follows:

   
Series
 
Ending
Market Value
Per Share
 
Average
Market Value
Per Share
 
California Premium Income (NCU)
             
Year Ended 2/28-2/29:
                   
2012
   
2015
 
$
10.06
 
$
9.84
 
2011
   
2015
   
9.63
   
9.74
^
2010
   
   
   
 
2009(f)
   
   
   
 
Year Ended 8/31:
                   
2008
   
   
   
 
2007
   
   
   
 
                     
California Dividend Advantage (NAC)
                   
Year Ended 2/28-2/29:
                   
2012
   
   
   
 
2011
   
   
   
 
2010
   
   
   
 
2009(f)
   
   
   
 
Year Ended 8/31:
                   
2008
   
   
   
 
2007
   
   
   
 
 
^
For the period September 22, 2010 (first issuance date of shares) through February 28, 2011.
 
See accompanying notes to financial statements.
     
Nuveen Investments
 
95

 
 

 

   
Financial
   
Highlights (continued)

   
ARPS at the End of Period
 
MTP Shares at the End of Period (g)
 
ARPS and
MTP Shares at
the End of Period
 
   
Aggregate
Amount
Outstanding
(000
)
Liquidation
Value
Per Share
 
Asset
Coverage
Per Share
 
Aggregate
Amount
Outstanding
(000
)
Liquidation
Value
Per Share
 
Asset
Coverage
Per Share
 
Asset Coverage
Per $1
Liquidation
Preference
 
California Dividend Advantage 2 (NVX)
                             
Year Ended 2/28-2/29:
                                           
2012
 
$
 
$
 
$
 
$
97,846
 
$
10.00
 
$
33.35
 
$
 
2011
   
39,950
   
25,000
   
77,310
   
55,000
   
10.00
   
30.92
   
3.09
 
2010
   
93,775
   
25,000
   
81,968
   
   
   
   
 
2009(f)
   
110,000
   
25,000
   
68,369
   
   
   
   
 
Year Ended 8/31:
                                           
2008
   
110,000
   
25,000
   
73,384
   
   
   
   
 
2007
   
110,000
   
25,000
   
74,394
   
   
   
   
 
                                             
California Dividend Advantage 3 (NZH)
                             
Year Ended 2/28-2/29:
                                           
2012
   
   
   
   
159,545
   
10.00
   
31.05
   
 
2011
   
69,500
   
25,000
   
71,960
   
86,250
   
10.00
   
28.78
   
2.88
 
2010
   
69,500
   
25,000
   
76,021
   
86,250
   
10.00
   
30.41
   
3.04
 
2009(f)
   
154,075
   
25,000
   
70,117
   
   
   
   
 
Year Ended 8/31:
                                           
2008
   
159,925
   
25,000
   
76,377
   
   
   
   
 
2007
   
187,000
   
25,000
   
70,963
   
   
   
   
 
 
(f)
For the six months ended February 28, 2009.
(g)
The Ending and Average Market Value Per Share for each Series of the Fund’s MTP Shares were as follows:
 
   
Series
 
Ending
Market Value
Per Share
 
Average
Market Value
Per Share
 
Series
 
Ending
Market Value
Per Share
 
Average
Market Value
Per Share
 
Series
 
Ending
Market Value
Per Share
 
Average
Market Value
Per Share
 
California Dividend Advantage 2 (NVX)
                                         
Year Ended 2/28-2/29:
                                                       
2012
   
 
$
 
$
   
2014
 
$
10.11
 
$
10.09
Ω  
2015
 
$
10.01
 
$
9.89
 
2011
   
   
   
   
   
   
   
2015
   
9.82
   
9.72
^^
2010
   
   
   
   
   
   
   
   
   
 
2009(f)
   
   
   
   
   
   
   
   
   
 
Year Ended 8/31:
                                                       
2008
   
   
   
   
   
   
   
   
   
 
2007
   
   
   
   
   
   
   
   
   
 
                                                         
California Dividend Advantage 3 (NZH)
                                         
Year Ended 2/28-2/29:
                                           
2012
   
2014
   
10.17
   
10.11
ΩΩ  
2014-1
   
10.15
   
10.12
ΩΩΩ  
2015
   
10.18
   
10.11
 
2011
   
   
   
   
   
   
   
2015
   
10.06
   
10.14
 
2010
   
   
   
   
   
   
   
2015
   
10.11
   
10.09
2009(f)
   
   
   
   
   
   
   
   
   
 
Year Ended 8/31:
                                                 
2008
   
   
   
   
   
   
   
   
   
 
2007
   
   
   
   
   
   
   
   
   
 
 
^
For the period December 21, 2009 (first issuance date of shares) through February 28, 2010.
^^
For the period October 22, 2010 (first issuance date of shares) through February 28, 2011.
Ω
For the period March 29, 2011 (first issuance date of shares) through February 29, 2012.
ΩΩ
For the period April 11, 2011 (first issuance date of shares) through February 29, 2012.
ΩΩΩ
For the period June 6, 2011 (first issuance date of shares) through February 29, 2012.
 
96
 
Nuveen Investments

 
 

 

   
ARPS at the End of Period
 
VRDP Shares at the End of Period
 
   
Aggregate
Amount
Outstanding
(000
)
Liquidation
Value
Per Share
 
Asset
Coverage
Per Share
 
Aggregate
Amount
Outstanding
(000
)
Liquidation
Value
Per Share
 
Asset
Coverage
Per Share
 
Insured California Dividend Advantage (NKL)
                         
Year Ended 2/28-2/29:
                                     
2012
 
$
 
$
 
$
 
$
104,400
 
$
100,000
 
$
334,215
 
2011
   
103,750
   
25,000
   
75,349
   
   
   
 
2010
   
108,250
   
25,000
   
76,802
   
   
   
 
2009(f)
   
108,250
   
25,000
   
72,683
   
   
   
 
Year Ended 8/31:
                                     
2008
   
118,000
   
25,000
   
72,321
   
   
   
 
2007
   
118,000
   
25,000
   
73,289
   
   
   
 
                                       
Insured California Tax-Free Advantage (NKX)
                         
Year Ended 2/28-2/29:
                                     
2012
   
   
   
   
35,500
   
100,000
   
344,312
 
2011
   
   
   
   
35,500
   
100,000
   
312,655
 
2010
   
   
   
   
35,500
   
100,000
   
332,616
 
2009(f)
   
   
   
   
35,500
   
100,000
   
313,131
 
Year Ended 8/31:
                                     
2008
   
   
   
   
35,500
   
100,000
   
335,299
 
2007
   
45,000
   
25,000
   
72,302
   
   
   
 

See accompanying notes to financial statements.
     
Nuveen Investments
 
97

 
 

 
 
   
Notes to
   
Financial Statements
 
1. General Information and Significant Accounting Policies
 
General Information
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) (each a “Fund” and collectively, the “Funds”). Common shares of Insured California Premium Income (NPC), Insured California Premium Income 2 (NCL) and California Dividend Advantage (NAC) are traded on the New York Stock Exchange (“NYSE”) while Common shares of California Premium Income (NCU), California Dividend Advantage 2 (NVX), California Dividend Advantage 3 (NZH), Insured California Dividend Advantage (NKL) and Insured California Tax-Free Advantage (NKX) are traded on the NYSE Amex. The Funds are registered under the Investment Company Act of 1940, as amended, as closed-end registered investment companies.
 
Each Fund seeks to provide current income exempt from both regular federal and California state income taxes, and in the case of Insured California Tax-Free Advantage (NKX) the alternative minimum tax applicable to individuals, by investing primarily in a portfolio of municipal obligations issued by state and local government authorities within the state of California or certain U.S. territories.
 
Approved Fund Mergers
After the close of this reporting period, the Funds’ shareholders approved a series of reorganizations and changes to certain investment policies for Insured California Premium Income (NPC), Insured California Premium Income 2 (NCL), Insured California Dividend Advantage (NKL) and Insured California Tax-Free Advantage (NKX). The approved changes to each Fund’s investment policies were intended to increase the Funds’ flexibility regarding the types of securities available for investment.
 
The investment policy changes are as follows:
   
Each Fund eliminated the investment policy requiring it, under normal circumstances, to invest at least 80 percent of its managed assets in municipal securities that are covered by insurance which currently guarantees the timely payment of principal and interest.
   
Each Fund adopted a new investment policy requiring it, under normal circumstances, to invest at least 80 percent of its managed assets in municipal securities that pay interest exempt from federal and California income tax.
   
Each Fund eliminated the old fundamental loan policy and adopted a new fundamental loan policy, which states that each Fund may not make loans, except as permitted by the Investment Company Act of 1940, as amended, and exemptive orders granted under the Investment Company Act of 1940, as amended.
   
Each Fund will continue to invest substantially all (at least 80 percent) of its managed assets in investment grade quality municipal securities.
   
Nuveen Insured California Tax-Free Advantage Municipal Fund (NKX) will continue its policy of investing, under normal circumstances, at least 80% of its assets in AMT-free municipal securities.
 
In addition the shareholders approved the reorganization of the Funds as follows:
 
Acquired Funds
   
Acquiring Fund
Insured California Premium Income (NPC)
 
Nuveen California AMT Free Municipal Income Fund (NKX)
Insured California Premium Income 2 (NCL)
     
Insured California Dividend Advantage (NKL)
     
 
The reorganizations will be consummated before the opening of business on May 7, 2012. Upon the closing of the reorganizations, the Acquired Funds will transfer substantially all of their assets to the Acquiring Fund in exchange for common and preferred shares of the Acquiring Fund, and the assumption by the Acquiring Fund of the liabilities of the Acquired Funds. The Acquired Funds will then be liquidated, dissolved and terminated in accordance with their Declaration of Trust. The Acquiring Fund will change its name to Nuveen California AMT Free Municipal Income Fund (NKX).
     
98
 
Nuveen Investments

 
 

 
 
Shareholders of the Acquired Funds will become shareholders of the Acquiring Fund. Holders of common shares will receive newly issued common shares of the Acquiring Fund, the aggregate net asset value of which will be equal to the aggregate net asset value of the common shares of the Acquired Funds held immediately prior to the reorganizations (including for this purpose fractional Acquiring Fund shares to which shareholders would be entitled). Fractional shares will be sold on the open market and shareholders will receive cash in lieu of such fractional shares. Holders of Variable Rate Demand Preferred (“VRDP”) Shares of each Acquired Fund will receive on a one-for-one basis newly issued VRDP Shares of the Acquiring Fund, in exchange for VRDP Shares of the Acquired Fund held immediately prior to the reorganization, with such new Acquiring Fund VRDP Shares having substantially the same terms as the exchanged VRDP Shares of the Acquired Funds.
 
Significant Accounting Policies
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 (“U.S. GAAP”).
 
Investment Valuation
Prices of municipal bonds and forward interest rate swap contracts are provided by a pricing service approved by the Funds’ Board of Directors/Trustees. These securities are generally classified as Level 2 for fair value measurement purposes. When price quotes are not readily available (which is usually the case for municipal bonds) the pricing service establishes a security’s fair value using methods that may include consideration of the following: yields or prices of investments of comparable quality, type of issue, coupon, maturity and rating, market quotes or indications of value from security dealers, evaluations of anticipated cash flows or collateral, general market conditions and other information and analysis, including the obligor’s credit characteristics considered relevant. In pricing certain securities, particularly less liquid and lower quality securities, the pricing service may consider information about a security, its issuer, or market activity, provided by Nuveen Funds Advisors, Inc. (the “Adviser”), a wholly-owned subsidiary of Nuveen Investments, Inc. (“Nuveen”). These securities are generally classified as Level 2 or Level 3 depending on the priority of the significant inputs.
 
Certain securities may not be able to be priced by the pre-established pricing methods as described above. Such securities may be valued by the Funds’ Board of Directors/Trustees or its designee at fair value. These securities generally include, but are not limited to, restricted securities (securities which may not be publicly sold without registration under the Securities Act of 1933, as amended) for which a pricing service is unable to provide a market price; securities whose trading has been formally suspended; debt securities that have gone into default and for which there is no current market quotation; a security whose market price is not available from a pre-established pricing source; a security with respect to which an event has occurred that is likely to materially affect the value of the security after the market has closed but before the calculation of a Fund’s net asset value (as may be the case in non-U.S. markets on which the security is primarily traded) or make it difficult or impossible to obtain a reliable market quotation; and a security whose price, as provided by the pricing service, is not deemed to reflect the security’s fair value. As a general principle, the fair value of a security would appear to be the amount that the owner might reasonably expect to receive for it in a current sale. A variety of factors may be considered in determining the fair value of such securities, which may include consideration of the following: yields or prices of investments of comparable quality, type of issue, coupon, maturity and rating, market quotes or indications of value from security dealers, evaluations of anticipated cash flows or collateral, general market conditions and other information and analysis, including the obligor’s credit characteristics considered relevant. These securities are generally classified as Level 2 or Level 3 depending on the priority of the significant inputs. Regardless of the method employed to value a particular security, all valuations are subject to review by the Funds’ Board of Directors/Trustees or its designee.
 
Refer to Footnote 2 – Fair Value Measurements for further details on the leveling of securities held by the Funds as of the end of the reporting period.
 
Investment Transactions
Investment transactions are recorded on a trade date basis. Realized gains and losses from transactions are determined on the specific identification method, which is the same basis used for federal income tax purposes. Investments purchased on a when-issued/delayed delivery basis may have extended settlement periods. Any investments so purchased are subject to market fluctuation during this period. The Funds have instructed the custodian to segregate assets with a current value at least equal to the amount of the when-issued/delayed delivery purchase commitments. At February 29, 2012, California Premium Income (NCU), California Dividend Advantage (NAC), California Dividend Advantage 2 (NVX) and California Dividend Advantage 3 (NZH) had outstanding when-issued/delayed delivery purchase commitments of $503,450, $4,554,000, $1,345,900 and $1,999,800, respectively. There were no such outstanding purchase commitments in any of the other Funds.
 
Investment Income
Investment income, which reflects the amortization of premiums and includes accretion of discounts for financial reporting purposes, is recorded on an accrual basis. Investment income also reflects paydown gains and losses, if any.
 
Professional Fees
Professional fees presented on the Statement of Operations consist of legal fees incurred in the normal course of operations, audit fees, tax consulting fees and, in some cases, workout expenditures. Workout expenditures are incurred in an attempt to protect or enhance an investment, or to pursue other claims or legal actions on behalf of Fund shareholders.
     
Nuveen Investments
 
99

 
 

 
 
   
Notes to
   
Financial Statements (continued)
 
Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund intends to distribute substantially all of its net investment income and net capital gains to shareholders and to otherwise comply with the requirements of Subchapter M of the Internal Revenue Code applicable to regulated investment companies (“RICs”). Therefore, no federal income tax provision is required. Furthermore, each Fund intends to satisfy conditions that 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.
 
For all open tax years and all major taxing jurisdictions, management of the Funds has concluded that there are no significant uncertain tax positions that would require recognition in the financial statements. Open tax years are those that are open for examination by taxing authorities (i.e., generally the last four tax year ends and the interim tax period since then). Furthermore, management of the Funds is also not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
 
Dividends and Distributions to Common Shareholders
Dividends from net investment income are declared monthly. Net realized capital gains and/or market discount from investment transactions, if any, are distributed to shareholders at least annually. Furthermore, capital gains are distributed only to the extent they exceed available capital loss carryforwards.
 
Distributions to Common shareholders of 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. GAAP.
 
Auction Rate Preferred Shares
Each Fund is authorized to issue Auction Rate Preferred Shares (“ARPS”). As of February 28, 2011, Insured California Premium Income (NPC), Insured California Premium Income 2 (NCL) and California Premium Income (NCU) redeemed all of their outstanding ARPS at liquidation value. As of August 31, 2008, Insured California Tax-Free Advantage (NKX) redeemed all of its outstanding ARPS at liquidation value. During the fiscal year ended February 29, 2012, California Dividend Advantage (NAC), California Dividend Advantage 2 (NVX), California Dividend Advantage 3 (NZH) and Insured California Dividend Advantage (NKL) had issued and outstanding ARPS, $25,000 stated value per share, which approximates market value, as a means of effecting financial leverage. Each Fund’s ARPS were issued in one or more Series. The dividend rate paid by the Funds on each Series was determined every seven days, pursuant to a dutch auction process overseen by the auction agent, and was payable at the end of each rate period.
 
Beginning in February 2008, more shares for sale were submitted in the regularly scheduled auctions for the ARPS issued by the Funds than there were offers to buy. This meant that these auctions “failed to clear,’’ and that many ARPS shareholders who wanted to sell their shares in these auctions were unable to do so. ARPS shareholders unable to sell their shares received distributions at the “maximum rate’’ applicable to failed auctions as calculated in accordance with the pre-established terms of the ARPS. As of February 29, 2012, each Fund redeemed all of their outstanding ARPS, at liquidation value, as follows:

   
Insured
California
Premium
Income
(NPC
)
Insured
California
Premium
Income 2
(NCL
)
California
Premium
 Income
(NCU
)
California
 Dividend
Advantage
(NAC
)
ARPS redeemed, at liquidation value
 
$
45,000,000
 
$
95,000,000
 
$
43,000,000
 
$
175,000,000
 

   
California
Dividend
Advantage 2
(NVX
)
California
Dividend
Advantage 3
(NZH
)
Insured
California
Dividend
Advantage
(NKL
)
Insured
California
Tax-Free
Advantage
(NKX
)
ARPS redeemed, at liquidation value
 
$
110,000,000
 
$
187,000,000
 
$
118,000,000
 
$
45,000,000
 
 
During the fiscal year ended February 28, 2011, lawsuits pursuing claims made in a demand letter alleging that Insured California Tax-Free Advantage’s (NKX) Board of Trustees breached its fiduciary duties related to the redemption at par of the Fund’s ARPS, had been filed on behalf of shareholders of the Fund, against the Adviser, the Nuveen holding company, the majority owner of the holding company, the lone interested trustee, and current and former officers of the Fund. Nuveen and the other named defendants have filed a motion to dismiss the lawsuits, and on December 16, 2011, the court granted that motion dismissing the lawsuits. The plaintiffs failed to file an appeal of the court’s decision within the required time period, resulting in the final disposition of the suit.
     
100
 
Nuveen Investments

 
 

 
 
MuniFund Term Preferred Shares
The following Funds have issued and outstanding MuniFund Term Preferred (“MTP”) Shares, with a $10 stated (“par”) value per share. Proceeds from the issuance of MTP Shares, net of offering expenses, were used to redeem all, or a portion of, each Fund’s outstanding ARPS. Each Fund’s MTP Shares may be issued in one or more Series. Dividends on MTP Shares, which are recognized as interest expense for financial reporting purposes, are paid monthly at a fixed annual rate, subject to adjustments in certain circumstances. The MTP Shares trade on the NYSE. As of February 29, 2012, the number of MTP Shares outstanding, annual interest rate and NYSE “ticker” symbol for each Fund’s series of MTP Shares are as follows:

   
California Premium Income (NCU)
 
   
Shares
Outstanding
 
Annual
Interest
Rate
 
NYSE
Ticker
 
Series 2015
   
35,250,000
   
2.00
%
 
NCU Pr C
 

   
California Dividend Advantage 2 (NVX)
 
California Dividend Advantage 3 (NZH)
 
   
Shares
Outstanding
 
Annual
Interest
Rate
 
NYSE
Ticker
 
Shares
Outstanding
 
Annual
Interest
Rate
 
NYSE
Ticker
 
Series:
                                     
2014
   
42,846,300
   
2.35
%
 
NVX Pr A
   
27,000,000
   
2.35
%
 
NZH Pr A
 
2014-1
   
   
   
   
46,294,500
   
2.25
   
NZH Pr B
 
2015
   
55,000,000
   
2.05
   
NVX Pr C
   
86,250,000
   
2.95
   
NZH Pr C
 
 
Each Fund is obligated to redeem its MTP Shares by the date as specified in its offering document (“Term Redemption Date”), unless earlier redeemed or repurchased by the Fund. MTP Shares are subject to optional and mandatory redemption in certain circumstances. MTP Shares will be subject to redemption at the option of each Fund (“Optional Redemption Date”), subject to a payment of premium for one year following the Optional Redemption Date (“Premium Expiration Date”), and at par thereafter. MTP Shares also will be subject to redemption, at the option of each Fund, at par in the event of certain changes in the credit rating of the MTP Shares. Each Fund may be obligated to redeem certain of the MTP Shares if the Fund fails to maintain certain asset coverage and leverage ratio requirements and such failures are not cured by the applicable cure date. The redemption price per share is equal to the sum of the liquidation value per share plus any accumulated but unpaid dividends. The Term Redemption Date, Optional Redemption Date and Premium Expiration Date for each Fund’s series of MTP Shares are as follows:

   
California
Premium
Income
(NCU
Series 2015
)
 
California
Dividend
Advantage 2
(NVX
Series 2014
)
 
California
Dividend
Advantage 2
(NVX
Series 2015
)
 
California
Dividend
Advantage 3
(NZH
Series 2014
)
 
California
Dividend Advantage 3
(NZH
Series 2014-1
)
 
California
Dividend
Advantage 3
(NZH
Series 2015
)
 
Term Redemption Date
   
October 1, 2015
   
April 1, 2014
   
November 1, 2015
   
May 1, 2014
   
July 1, 2014
   
January 1, 2015
 
Optional Redemption Date
   
October 1, 2011
   
April 1, 2012
   
November 1, 2011
   
May 1, 2012
   
July 1, 2012
   
January 1, 2011
 
Premium Expiration Date
   
September 30, 2012
   
March 31, 2013
   
October 31, 2012
   
April 30, 2013
   
June 30, 2013
   
December 31, 2011
 
 
The average liquidation value of all MTP Shares outstanding for each Fund during the fiscal year ended February 29, 2012, was as follows:
                     
   
California
 
California
 
California
 
   
Premium
 
Dividend
 
Dividend
 
   
Income
 
Advantage 2
 
Advantage 3
 
   
(NCU
)
(NVX
)
(NZH
)
Average liquidation value of MTP Shares outstanding
 
$
35,250,000
 
$
94,479,248
 
$
144,226,510
 
 
For financial reporting purposes only, the liquidation value of MTP Shares is recorded as a liability on the Statement of Assets and Liabilities. Unpaid dividends on MTP Shares are recognized as a component of “Interest payable” on the Statement of Assets and Liabilities. Dividends paid on MTP Shares are recognized as a component of “Interest expense and amortization of offering costs” on the Statement of Operations.
 
Nuveen has agreed that net amounts earned by Nuveen as underwriter of each Fund’s MTP Share offering would be credited to the Funds, and would be recorded as reductions of offering costs recognized by the Funds. During the fiscal year ended February 29, 2012, the net amounts earned by Nuveen for each fund were as follows:
                     
   
California
 
California
 
California
 
   
Premium
 
Dividend
 
Dividend
 
   
Income
 
Advantage 2
 
Advantage 3
 
   
(NCU
)
(NVX
)
 
(NZH
)
Net amounts earned by Nuveen
 
$
2,021
 
$
4,454
 
$
1,895
 

Nuveen Investments
 
101

 
 

 
 
   
Notes to
   
Financial Statements (continued)
 
Variable Rate Demand Preferred Shares
The following Funds have issued and outstanding VRDP Shares, with a $100,000 liquidation value per share. Insured California Premium Income (NPC), Insured California Premium Income 2 (NCL), California Dividend Advantage (NAC), Insured California Dividend Advantage (NKL) and Insured California Tax-Free Advantage (NKX) issued their VRDP Shares in a privately negotiated offering during March 2010, December 2010, June 2011, June 2011 and August 2008, respectively. Concurrent with renewing agreements with the liquidity provider for its VRDP Shares in June 2010, Insured Premium Income 2 (NPX) exchanged all its 2,190 Series 1 VRDP Shares for 2,190 Series 2 VRDP Shares. The principal difference in terms between Series 1 and Series 2 VRDP Shares is the requirement that the Fund redeem VRDP Shares owned by the liquidity provider if the VRDP Shares have been owned by the liquidity provider through six months of continuous, unsuccessful remarketing. Proceeds of each Fund’s offering were used to redeem all, or a portion of, each Fund’s outstanding ARPS. The VRDP Shares were offered to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933. As of February 29, 2012, the number of VRDP Shares outstanding and maturity date for each Fund are as follows:
                                 
   
Insured
 
Insured
     
Insured
   
Insured
 
   
California
 
California
 
California
 
California
 
California
 
   
Premium
 
Premium
 
Dividend
 
Dividend
 
Tax-Free
 
   
Income
 
Income 2
 
Advantage
 
Advantage
 
Advantage
 
   
(NPC
)
(NCL
)
(NAC
)
(NKL
)
(NKX
)
Series
   
1
   
1
   
1
   
1
   
2
 
Shares outstanding
   
427
   
740
   
1,362
   
1,044
   
355
 
Maturity
   
March 1, 2040
   
December 1, 2040
   
June 1, 2041
   
June 1, 2041
   
June 1, 2040
 
 
VRDP Shares include a liquidity feature that allows VRDP shareholders to have their shares purchased by a liquidity provider with whom each Fund has contracted in the event that purchase orders for VRDP Shares in a remarketing are not sufficient in number to be matched with the sale orders in that remarketing. Each Fund is required to redeem any VRDP Shares that are still owned by the liquidity provider after six months of continuous, unsuccessful remarketing.
 
Dividends on the VRDP Shares (which are treated as interest payments for financial reporting purposes) are set weekly at a rate established by a remarketing agent; therefore, the market value of the VRDP Shares is expected to approximate its liquidation value. If remarketings for VRDP Shares are continuously unsuccessful for six months, the maximum rate is designed to escalate according to a specified schedule in order to enhance the remarketing agent’s ability to successfully remarket the VRDP Shares.
 
Subject to certain conditions, VRDP Shares may be redeemed, in whole or in part, at any time at the option of each Fund. Each Fund may also redeem certain of the VRDP Shares if the Fund fails to maintain certain asset coverage requirements and such failures are not cured by the applicable cure date. The redemption price per share is equal to the sum of the liquidation value per share plus any accumulated but unpaid dividends.
 
The average liquidation value outstanding and annualized dividend rate of VRDP Shares for each Fund during the fiscal year ended February 29, 2012, were as follows:
                                 
   
Insured
 
Insured
     
Insured
 
Insured
 
   
California
 
California
 
California
 
California
 
California
 
   
Premium
 
Premium
 
Dividend
 
Dividend
 
Tax-Free
 
   
Income
 
Income 2
 
Advantage
 
Advantage
 
Advantage
 
   
(NPC
)
(NCL
)
(NAC
)*
(NKL
)*
(NKX
)
Average liquidation value outstanding
 
$
42,700,000
 
$
74,000,000
 
$
136,200,000
 
$
104,400,000
 
$
35,500,000
 
Annualized dividend rate
   
0.32
%
 
0.32
%
 
0.28
%
 
0.28
%
 
0.27
%
 
*
For the period June 28, 2011 (issuance date of shares) through February 29, 2012.
 
For financial reporting purposes only, the liquidation value of VRDP Shares is recognized as a liability on the Statement of Assets and Liabilities. Unpaid dividends on VRDP Shares are recognized as a component of “Interest payable” on the Statement of Assets and Liabilities. Dividends paid on the VRDP Shares are recognized as a component of “Interest expense and amortization of offering costs” on the Statement of Operations. In addition to interest expense, each Fund also pays a per annum liquidity fee to the liquidity provider, as well as a remarketing fee, which are recognized as “Fees on VRDP Shares” on the Statement of Operations.
 
Insurance
Since 2007, the financial status of most major municipal bond insurers has deteriorated substantially, and some insurers have gone out of business, rendering worthless the insurance policies they had written. Under normal circumstances, Insured California Premium Income (NPC), Insured California Premium Income 2 (NCL), Insured California Dividend Advantage (NKL) and Insured California Tax-Free Advantage (NKX) invest at least 80% of their managed assets (as defined in Footnote 7 – Management Fees and Other Transactions with Affiliates) in municipal securities that are covered by insurance guaranteeing the timely payment of principal and interest. In addition, the municipal securities in which each Fund invests will be investment
     
102
 
Nuveen Investments

 
 

 
 
grade at the time of purchase (including (i) bonds insured by investment grade insurers or are rated investment grade; (ii) unrated bonds that are judged to be investment grade by the Adviser; and (iii) escrowed bonds). Ratings below BBB by one or more national rating agencies are considered to be below investment grade.
 
Each insured municipal security is covered by Original Issue Insurance, Secondary Market Insurance or Portfolio Insurance. Assuming that the insurer remains creditworthy, the insurance feature of a municipal security guarantees the full payment of principal and interest when due through the life of an insured obligation. Such insurance does not guarantee the market value of the insured obligation or the value of the Fund’s Common shares. Original Issue Insurance and Secondary Market Insurance remain in effect as long as the municipal securities covered thereby remain outstanding and the insurer remains in business, regardless of whether the Funds ultimately dispose of such municipal securities. Consequently, the market value of the municipal securities covered by Original Issue Insurance or Secondary Market Insurance may reflect value attributable to the insurance. Portfolio Insurance, in contrast, is effective only while the municipal securities are held by the Funds and is reflected as an expense over the term of the policy, when applicable. Accordingly, neither the prices used in determining the market value of the underlying municipal securities nor the Common share net asset value of the Funds include value, if any, attributable to the Portfolio Insurance. Each policy of the Portfolio Insurance does, however, give the Funds the right to obtain permanent insurance with respect to the municipal security covered by the Portfolio Insurance policy at the time of its sale.
 
Inverse Floating Rate Securities
Each Fund is authorized to invest in inverse floating rate securities. An inverse floating rate security is created by depositing a municipal bond, typically with a fixed interest rate, into a special purpose trust created by a broker-dealer. In turn, this trust (a) issues floating rate certificates, in face amounts equal to some fraction of the deposited bond’s par amount or market value, that typically pay short-term tax-exempt interest rates to third parties, and (b) issues to a long-term investor (such as one of the Funds) an inverse floating rate certificate (sometimes referred to as an “inverse floater”) that represents all remaining or residual interest in the trust. The income received by the inverse floater holder varies inversely with the short-term rate paid to the floating rate certificates’ holders, and in most circumstances the inverse floater holder bears substantially all of the underlying bond’s downside investment risk and also benefits disproportionately from any potential appreciation of the underlying bond’s value. The price of an inverse floating rate security will be more volatile than that of the underlying bond because the interest rate is dependent on not only the fixed coupon rate of the underlying bond but also on the short-term interest paid on the floating rate certificates, and because the inverse floating rate security essentially bears the risk of loss of the greater face value of the underlying bond.
 
A Fund may purchase an inverse floating rate security in a secondary market transaction without first owning the underlying bond (referred to as an “externally-deposited inverse floater”), or instead by first selling a fixed-rate bond to a broker-dealer for deposit into the special purpose trust and receiving in turn the residual interest in the trust (referred to as a “self-deposited inverse floater”). The inverse floater held by a Fund gives the Fund the right (a) to cause the holders of the floating rate certificates to tender their notes at par, and (b) to have the broker transfer the fixed-rate bond held by the trust to the Fund, thereby collapsing the trust. An investment in an externally-deposited inverse floater is identified in the Portfolio of Investments as “(IF) – Inverse floating rate investment.” An investment in a self-deposited inverse floater is accounted for as a financing transaction. In such instances, a fixed-rate bond deposited into a special purpose trust is identified in the Portfolio of Investments as “(UB) – Underlying bond of an inverse floating rate trust reflected as a financing transaction,” with the Fund accounting for the short-term floating rate certificates issued by the trust as “Floating rate obligations” on the Statement of Assets and Liabilities. In addition, the Fund reflects in “Investment Income” the entire earnings of the underlying bond and the related interest paid to the holders of the short-term floating rate certificates as a component of “Interest expense and amortization of offering costs” on the Statement of Operations.
 
During the fiscal year ended February 29, 2012, each Fund invested in externally-deposited inverse floaters and/or self-deposited inverse floaters.
 
Each Fund may also enter into shortfall and forbearance agreements (sometimes referred to as a “recourse trust” or “credit recovery swap”) (such agreements referred to herein as “Recourse Trusts”) with a broker-dealer by which a Fund agrees to reimburse the broker-dealer, in certain circumstances, for the difference between the liquidation value of the fixed-rate bond held by the trust and the liquidation value of the floating rate certificates issued by the trust plus any shortfalls in interest cash flows. Under these agreements, a Fund’s potential exposure to losses related to or on inverse floaters may increase beyond the value of a Fund’s inverse floater investments as a Fund may potentially be liable to fulfill all amounts owed to holders of the floating rate certificates. At period end, any such shortfall is recognized as “Unrealized depreciation on Recourse Trusts” on the Statement of Assets and Liabilities. At February 29, 2012, each Fund’s maximum exposure to externally-deposited Recourse Trusts, was as follows:
                                                   
   
Insured
 
Insured
                         
Insured
 
Insured
 
   
California
 
California
 
California
 
California
 
California
 
California
 
California
 
California
 
   
Premium
 
Premium
 
Premium
 
Dividend
 
Dividend
 
Dividend
 
Dividend
 
Tax-Free
 
   
Income
 
Income 2
 
Income
 
Advantage
 
Advantage 2
 
Advantage 3
 
Advantage
 
Advantage
 
     
(NPC
)
 
(NCL
)
 
(NCU
)
 
(NAC
)
 
(NVX
)
 
(NZH
)
(NKL
)
(NKX
)
Maximum exposure to
Recourse Trusts
 
$
9,780,000
 
$
9,515,000
 
$
6,510,000
 
$
3,590,000
 
$
16,210,000
 
$
48,960,000
 
$
7,700,000
 
$
2,905,000
 

Nuveen Investments
 
103

 
 

 
 
   
Notes to
   
Financial Statements (continued)
 
The average floating rate obligations outstanding and average annual interest rate and fees related to self-deposited inverse floaters for the following Funds during the fiscal year ended February 29, 2012, were as follows:
                     
   
Insured
         
   
California
 
California
 
California
 
   
Premium
 
Premium
 
Dividend
 
   
Income 2
 
Income
 
Advantage
 
   
(NCL
)
(NCU
)
(NAC
)
Average floating rate obligations outstanding
 
$
17,880,000
 
$
6,650,000
 
$
28,545,000
 
Average annual interest rate and fees
   
0.59
%
 
0.55
%
 
0.60
%

                           
               
Insured
 
Insured
 
   
California
 
California
 
California
 
California
 
   
Dividend
 
Dividend
 
Dividend
 
Tax-Free
 
   
Advantage 2
 
Advantage 3
 
Advantage
 
Advantage
 
   
(NVX
)
(NZH
)
(NKL
)
(NKX
)
Average floating rate obligations outstanding
 
$
11,390,000
 
$
3,845,000
 
$
7,385,000
 
$
3,360,000
 
Average annual interest rate and fees
   
0.61
%
 
0.54
%
 
0.61
%
 
0.77
%
 
Forward Swap Contracts
Each Fund is authorized to enter into forward interest rate swap contracts consistent with their investment objectives and policies to reduce, increase or otherwise alter its risk profile or to alter its portfolio characteristics (i.e. duration, yield curve positioning and credit quality).
 
Each Fund is subject to interest rate risk in the normal course of pursuing its investment objectives. Each Fund’s use of forward interest rate swap transactions is intended to help the Fund manage its overall interest rate sensitivity, either shorter or longer, generally to more closely align the Fund’s interest rate sensitivity with that of the broader market. Forward interest rate swap transactions involve each Fund’s agreement with a counterparty to pay, in the future, a fixed or variable rate payment in exchange for the counterparty paying the Fund a variable or fixed rate payment, the accruals for which would begin at a specified date in the future (the “effective date”). The amount of the payment obligation is based on the notional amount of the swap contract and the termination date of the swap (which is akin to a bond’s maturity). The value of the Fund’s swap commitment would increase or decrease based primarily on the extent to which long-term interest rates for bonds having a maturity of the swap’s termination date increase or decrease. Forward interest rate swap contracts are valued daily. The net amount recorded on these transactions for each counterparty is recognized on the Statement of Assets and Liabilities as a component of “Unrealized appreciation or depreciation on forward swaps” with the change during the fiscal period recognized on the Statement of Operations as a component of “Change in net unrealized appreciation (depreciation) of forward swaps.”
 
Each Fund may terminate a swap contract prior to the effective date, at which point a realized gain or loss is recognized. When a forward swap is terminated, it ordinarily does not involve the delivery of securities or other underlying assets or principal, but rather is settled in cash on a net basis. Net realized gains and losses during the fiscal period are recognized on the Statement of Operations as a component of “Net realized gain (loss) from forward swaps.” Each Fund intends, but is not obligated, to terminate its forward swaps before the effective date. Accordingly, the risk of loss with respect to the swap counterparty on such transactions is limited to the credit risk associated with a counterparty failing to honor its commitment to pay any realized gain to the Fund upon termination.
 
During the fiscal year ended February 29, 2012, Insured California Premium Income 2 (NCL) entered into forward interest rate swap contracts to broadly reduce the sensitivity of the Fund to movements in U.S. interest rates. The average notional amount of forward interest rate swap contracts outstanding during the fiscal year ended February 29, 2012 was as follows:
         
   
Insured
 
   
California
 
   
Premium
 
   
Income 2
 
   
(NCL
)
Average notional amount of forward interest rate swap contracts outstanding*
 
$
2,300,000
 
 
*
The average notional amount is calculated based on the outstanding notional at the beginning of the fiscal year and at the end of each fiscal quarter within the current fiscal year.
 
Refer to Footnote 3 – Derivative Instruments and Hedging Activities for further details on forward swap contract activity.
 
Market and Counterparty Credit Risk
In the normal course of business each Fund may invest in financial instruments and enter into financial transactions where risk of potential loss exists due to changes in the market (market risk) or failure of the other party to the transaction to perform (counterparty credit risk). The potential loss could exceed the value of the financial assets recorded on the financial statements. Financial assets, which potentially expose each Fund to counterparty credit risk, consist principally of cash due from counterparties on forward, option and swap transactions, when applicable. The extent of each Fund’s exposure to counterparty credit risk in respect to these financial assets approximates their carrying value as recorded on the Statement of Assets and
     
104
 
Nuveen Investments

 
 

 
 
Liabilities. Futures contracts, when applicable, expose a Fund to minimal counterparty credit risk as they are exchange traded and the exchange’s clearinghouse, which is counterparty to all exchange traded futures, guarantees the futures contracts against default.
 
Each Fund helps manage counterparty credit risk by entering into agreements only with counterparties the Adviser believes have the financial resources to honor their obligations and by having the Adviser monitor the financial stability of the counterparties. Additionally, counterparties may be required to pledge collateral daily (based on the daily valuation of the financial asset) on behalf of each Fund with a value approximately equal to the amount of any unrealized gain above a pre-determined threshold. Reciprocally, when each Fund has an unrealized loss, the Funds have instructed the custodian to pledge assets of the Funds as collateral with a value approximately equal to the amount of the unrealized loss above a pre-determined threshold. Collateral pledges are monitored and subsequently adjusted if and when the valuations fluctuate, either up or down, by at least the pre-determined threshold amount.
 
Zero Coupon Securities
Each Fund is authorized to invest in zero coupon securities. A zero coupon security does not pay a regular interest coupon to its holders during the life of the security. Tax-exempt income to the holder of the security comes from accretion of the difference between the original purchase price of the security at issuance and the par value of the security at maturity and is effectively paid at maturity. The market prices of zero coupon securities generally are more volatile than the market prices of securities that pay interest periodically.
 
Offering Costs
Costs incurred by the Funds in connection with their offerings of MTP Shares or VRDP Shares were recorded as a deferred charge, which are being amortized over the life of the shares. Each Fund’s amortized deferred charges are recognized as a component of “Interest expense and amortization of offering costs” on the Statement of Operations. Each Fund’s offering costs incurred were as follows:
                     
   
California
 
California
 
California
 
   
Premium
 
Dividend
 
Dividend
 
   
Income
 
Advantage 2
 
Advantage 3
 
   
(NCU
)
(NVX
)
(NZH
)
MTP Shares offering costs
 
$
868,750
 
$
2,055,579
 
$
3,269,931
 

                                 
     
Insured
   
Insured
   
 
   
Insured
   
Insured
 
     
California
   
California
   
California
   
California
   
California
 
     
Premium
   
Premium
   
Dividend
   
Dividend
   
Tax-Free
 
     
Income
   
Income 2
   
Advantage
   
Advantage
   
Advantage
 
     
(NPC
)
 
(NCL
)
 
(NAC
)
 
(NKL
)
 
(NKX
)
VRDP Shares offering costs
 
$
857,000
 
$
627,000
 
$
650,000
 
$
580,000
 
$
530,000
 
 
Custodian Fee Credit
Each Fund has an arrangement with the custodian bank whereby certain custodian fees and expenses are reduced by net credits earned on each Fund’s cash on deposit with the bank. Such deposit arrangements are an alternative to overnight investments. Credits for cash balances may be offset by charges for any days on which a Fund overdraws its account at the custodian bank.
 
Indemnifications
Under the Funds’ organizational documents, their officers and directors/trustees are indemnified against certain liabilities arising out of the performance of their duties to the Funds. In addition, in the normal course of business, the Funds enter into contracts that provide general 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. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets applicable to Common shares from operations during the reporting period. Actual results may differ from those estimates.
 
2. Fair Value Measurements
Fair value is defined as the price that the Funds would receive upon selling an investment or transferring a liability in an orderly transaction to an independent buyer in the principal or most advantageous market for the investment. A three-tier hierarchy is used to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability. Observable inputs are based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions
     
Nuveen Investments
 
105

 
 

 
 
    Notes to
   
Financial Statements (continued)
 
market participants would use in pricing the asset or liability. Unobservable inputs are based on the best information available in the circumstances. The three-tier hierarchy of inputs is summarized in the three broad levels listed below:
 
  Level 1 – Quoted prices in active markets for identical securities.
  Level 2 – Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
  Level 3 – Significant unobservable inputs (including management’s assumptions in determining the fair value of investments).
 
The inputs or methodologies used for valuing securities are not an indication of the risk associated with investing in those securities. The following is a summary of each Fund’s fair value measurements as of February 29, 2012:

                           
Insured California Premium Income (NPC)
   
Level 1
   
Level 2
   
Level 3
   
Total
 
Investments:
                         
Municipal Bonds
 
$
 
$
138,048,126
 
$
 
$
138,048,126
 
                           
Insured California Premium Income 2 (NCL)
   
Level 1
   
Level 2
   
Level 3
   
Total
 
Investments:
                         
Municipal Bonds
 
$
 
$
280,025,460
 
$
 
$
280,025,460
 
                           
California Premium Income (NCU)
   
Level 1
   
Level 2
   
Level 3
   
Total
 
Investments:
                         
Municipal Bonds
 
$
 
$
125,293,556
 
$
 
$
125,293,556
 
                           
California Dividend Advantage (NAC)
   
Level 1
   
Level 2
   
Level 3
   
Total
 
Investments:
                         
Municipal Bonds
 
$
 
$
510,520,007
 
$
 
$
510,520,007
 
                           
California Dividend Advantage 2 (NVX)
   
Level 1
   
Level 2
   
Level 3
   
Total
 
Investments:
                         
Municipal Bonds
 
$
 
$
329,724,378
 
$
 
$
329,724,378
 
                           
California Dividend Advantage 3 (NZH)
   
Level 1
   
Level 2
   
Level 3
   
Total
 
Investments:
                         
Municipal Bonds
 
$
 
$
488,106,122
 
$
 
$
488,106,122
 
                           
Insured California Dividend Advantage (NKL)
   
Level 1
   
Level 2
   
Level 3
   
Total
 
Investments:
                         
Municipal Bonds
 
$
 
$
350,901,757
 
$
 
$
350,901,757
 
                           
Insured California Tax-Free Advantage (NKX)
   
Level 1
   
Level 2
   
Level 3
   
Total
 
Investments:
                         
Municipal Bonds
 
$
 
$
123,860,171
 
$
 
$
123,860,171
 
 
The following is a reconciliation of the following Fund’s Level 3 investments held at the beginning and end of the measurement period:
                           
   
California
 
California
 
California
 
California
 
   
Premium
 
Dividend
 
Dividend
 
Dividend
 
   
Income
 
Advantage
 
Advantage 2
 
Advantage 3
 
   
(NCU
)
(NAC
)
(NVX
)
(NZH
)
   
Level 3
 
Level 3
 
Level 3
 
Level 3
 
   
Municipal
 
Municipal
 
Municipal
 
Municipal
 
   
Bonds
 
Bonds
 
Bonds
 
Bonds
 
Balance at the beginning of period
 
$
2,746,970
 
$
1,229,601
 
$
766,086
 
$
1,261,789
 
Gains (losses):
                         
Net realized gains (losses)
   
   
   
   
 
Net change in unrealized appreciation (depreciation)
   
690,857
   
(610,913
)
 
(380,621
)
 
(626,905
)
Purchases at cost
   
   
   
   
 
Sales at proceeds
   
(690,000
)
 
(7,431
)
 
(4,629
)
 
(7,625
)
Net discounts (premiums)
   
   
   
   
 
Transfers in to
   
   
   
   
 
Transfers out of
   
(2,747,827
)
 
(611,257
)
 
(380,836
)
 
(627,259
)
Balance at the end of period
 
$
 
$
 
$
 
$
 
Change in net unrealized appreciation (depreciation) during the period of Level 3 securities held as of February 29, 2012
 
$
 
$
 
$
 
$
 
 
During the fiscal year ended February 29, 2012, the Funds recognized no significant transfers to or from Level 1 or Level 2. Transfers in and/or out of Level 3 are shown using end of period values.
     
106
 
Nuveen Investments

 
 

 

3. Derivative Instruments and Hedging Activities
The Funds record derivative instruments at fair value, with changes in fair value recognized on the Statement of Operations, when applicable. Even though the Funds’ investments in derivatives may represent economic hedges, they are not considered to be hedge transactions for financial reporting purposes. For additional information on the derivative instruments in which each Fund was invested during and at the end of the reporting period, refer to the Portfolios of Investments, Financial Statements and Footnote 1 - General Information and Significant Accounting Policies.
 
The following tables present the amount of net realized gain (loss) and change in net unrealized appreciation (depreciation) recognized for the fiscal year ended February 29, 2012, on derivative instruments, as well as the primary risk exposure associated with each.
         
   
Insured
 
   
California
 
   
Premium
 
   
Income 2
 
Net Realized Gain (Loss) from Forward Swaps
 
(NCL
)
Risk Exposure
       
Interest Rate
 
$
(346,971
)

         
   
Insured
 
   
California
 
   
Premium
 
   
Income 2
 
Change in Net Unrealized Appreciation (Depreciation) of Forward Swaps
 
(NCL
)
Risk Exposure
       
Interest Rate
 
$
15,872
 
 
4. Fund Shares
 
Common Shares
Transactions in Common shares were as follows:
                           
     
Insured California
Premium Income (NPC)
 
Insured California
Premium Income 2 (NCL)
 
     
Year Ended
   
Year Ended
   
Year Ended
   
Year Ended
 
     
2/29/12
   
2/28/11
   
2/29/12
   
2/28/11
 
Common shares:
                         
Issued to shareholders due
                         
to reinvestment of distributions
   
7,433
   
   
6,877
   
2,552
 
Repurchased and retired
   
   
   
   
(1,200
)
Weighted average Common share:
                         
Price per share repurchased and retired
   
   
   
 
$
12.14
 
Discount per share repurchased and retired
   
   
   
   
13.47
%

                           
   
California Premium
Income (NCU)
 
California Dividend
Advantage (NAC)
 
     
Year Ended
   
Year Ended
   
Year Ended
   
Year Ended
 
     
2/29/12
   
2/28/11
   
2/29/12
   
2/28/11
 
Common shares:
                         
Issued to shareholders due
                         
to reinvestment of distributions
   
   
   
2,968
   
 
Repurchased and retired
   
   
(2,400
)
 
   
 
Weighted average Common share:
                         
Price per share repurchased and retired
   
 
$
11.82
   
   
 
Discount per share repurchased and retired
   
   
14.53
%
 
   
 

Nuveen Investments
 
107

 
 

 
 
   
Notes to
   
Financial Statements (continued)
 
   
California Dividend
Advantage 2 (NVX)
 
California Dividend
Advantage 3 (NZH)
 
     
Year Ended
   
Year Ended
   
Year Ended
   
Year Ended
 
     
2/29/12
   
2/28/11
   
2/29/12
   
2/28/11
 
Common shares:
                         
Issued to shareholders due
                         
to reinvestment of distributions
   
   
   
11,313
   
8,485
 
Repurchased and retired
   
   
   
   
 
Weighted average Common share:
                         
Price per share repurchased and retired
   
   
   
   
 
Discount per share repurchased and retired
   
   
   
   
 

   
Insured California Dividend
Advantage (NKL)
 
Insured California Tax-Free
Advantage (NKX)
 
     
Year Ended
   
Year Ended
   
Year Ended
   
Year Ended
 
     
2/29/12
   
2/28/11
   
2/29/12
   
2/28/11
 
Common shares:
                         
Issued to shareholders due
                         
to reinvestment of distributions
   
9,519
   
2,873
   
1,612
   
596
 
Repurchased and retired
   
   
   
   
 
Weighted average Common share:
                         
Price per share repurchased and retired
   
   
   
   
 
Discount per share repurchased and retired
   
   
   
   
 
 
Preferred Shares
Insured California Tax-Free Advantage (NKX) redeemed all of its outstanding ARPS during the fiscal year ended August 31, 2008.
 
Transactions in ARPS were as follows:
                                                   
   
Insured California
Premium Income (NPC)
 
Insured California
Premium Income 2 (NCL)
 
   
Year Ended
2/29/12
 
Year Ended
2/28/11
 
Year Ended
2/29/12
 
Year Ended
2/28/11
 
     
Shares
   
Amount
   
Shares
   
Amount
   
Shares
   
Amount
   
Shares
   
Amount
 
ARPS redeemed:
                                                 
Series T
   
N/A
   
N/A
   
1,800
 
$
45,000,000
   
N/A
   
N/A
   
1,597
 
$
39,925,000
 
Series TH
   
N/A
   
N/A
   
   
   
N/A
   
N/A
   
1,596
   
39,900,000
 
Total
   
N/A
   
N/A
   
1,800
 
$
45,000,000
   
N/A
   
N/A
   
3,193
 
$
79,825,000
 

   
California
Premium Income (NCU)
 
California Dividend
Advantage (NAC)
 
   
Year Ended
2/29/12
 
Year Ended
2/28/11
 
Year Ended
2/29/12
 
Year Ended
2/28/11
 
   
Shares
 
Amount
 
Shares
 
Amount
 
Shares
 
Amount
 
Shares
 
Amount
 
ARPS redeemed:
                                                 
Series M
   
N/A
   
N/A
   
1,375
 
$
34,375,000
   
 
$
   
 
$
 
Series TH
   
N/A
   
N/A
   
   
   
2,710
   
67,750,000
   
   
 
Series F
   
N/A
   
N/A
   
   
   
2,711
   
67,775,000
   
   
 
Total
   
N/A
   
N/A
   
1,375
 
$
34,375,000
   
5,421
 
$
135,525,000
   
 
$
 
 
N/A - As of February 28, 2011, the Fund redeemed all of its outstanding ARPS at liquidation value.
     
108
 
Nuveen Investments

 
 

 

   
California Dividend
Advantage 2 (NVX)
 
California Dividend
Advantage 3 (NZH)
 
   
Year Ended
2/29/12
 
Year Ended
2/29/12
 
Year Ended
2/28/11
 
Year Ended
2/28/11
 
     
Shares
   
Amount
   
Shares
   
Amount
   
Shares
   
Amount
   
Shares
   
Amount
 
ARPS redeemed:
                                                 
Series M
   
799
 
$
19,975,000
   
1,076
 
$
26,900,000
   
1,389
 
$
34,725,000
   
 
$
 
Series TH
   
   
   
   
   
1,391
   
34,775,000
   
   
 
Series F
   
799
   
19,975,000
   
1,077
   
26,925,000
   
   
   
   
 
Total
   
1,598
 
$
39,950,000
   
2,153
 
$
53,825,000
   
2,780
 
$
69,500,000
   
 
$
 

   
Insured California
Dividend Advantage (NKL)
 
   
Year Ended
2/29/12
 
Year Ended
2/28/11
 
     
Shares
   
Amount
   
Shares
   
Amount
 
ARPS redeemed:
                         
Series T
   
2,075
 
$
51,875,000
   
90
 
$
2,250,000
 
Series F
   
2,075
   
51,875,000
   
90
   
2,250,000
 
Total
   
4,150
 
$
103,750,000
   
180
 
$
4,500,000
 
 
Transactions in MTP Shares were as follows:
                                                   
   
California
Premium Income (NCU)
 
California Dividend
Advantage 2 (NVX)
 
   
Year Ended
2/29/12
 
Year Ended
2/28/11
 
Year Ended
2/29/12
 
Year Ended
2/28/11
 
     
Shares
   
Amount
   
Shares
   
Amount
   
Shares
   
Amount
   
Shares
   
Amount
 
MTP Shares issued:
                                                 
Series 2014
   
 
$
   
 
$
   
4,284,630
 
$
42,846,300
   
 
$
 
Series 2015
   
   
   
3,525,000
   
35,250,000
   
   
   
5,500,000
   
55,000,000
 
Total
   
 
$
   
3,525,000
 
$
35,250,000
   
4,284,630
 
$
42,846,300
   
5,500,000
 
$
55,000,000
 

   
California Dividend
Advantage 3 (NZH)
 
   
Year Ended
2/29/12
 
Year Ended
2/28/11
 
     
Shares
   
Amount
   
Shares
   
Amount
 
MTP Shares issued:
                         
Series 2014
   
2,700,000
 
$
27,000,000
   
 
$
 
Series 2014-1
   
4,629,450
   
46,294,500
   
   
 
Total
   
7,329,450
 
$
73,294,500
   
 
$
 
 
Transactions in VRDP Shares were as follows:
                                                   
   
Insured California
Premium Income (NPC)
 
Insured California
Premium Income 2 (NCL)
 
   
Year Ended
2/29/12
 
Year Ended
2/28/11
 
Year Ended
2/29/12
 
Year Ended
2/28/11
 
     
Shares
   
Amount
   
Shares
   
Amount
   
Shares
   
Amount
   
Shares
   
Amount
 
VRDP Shares issued:
                                                 
Series 1
   
 
$
   
427
 
$
42,700,000
   
 
$
   
740
 
$
74,000,000
 

Nuveen Investments
 
109

 
 

 
 
   
Notes to
   
Financial Statements (continued)
 
   
California
Dividend Advantage (NAC)
 
Insured California
Dividend Advantage (NKL)
 
   
Year Ended
2/29/12
 
Year Ended
2/28/11
 
Year Ended
2/29/12
 
Year Ended
2/28/11
 
     
Shares
   
Amount
   
Shares
   
Amount
   
Shares
   
Amount
   
Shares
   
Amount
 
VRDP Shares issued:
                                                 
Series 1
   
1,362
 
$
136,200,000
   
 
$
   
1,044
 
$
104,400,000
   
 
$
 
 
5. Investment Transactions
Purchases and sales (including maturities but excluding short-term investments and derivative transactions, where applicable) during the fiscal year ended February 29, 2012, were as follows:
                           
     
Insured
   
Insured
             
     
California
   
California
   
California
   
California
 
     
Premium
   
Premium
   
Premium
   
Dividend
 
     
Income
   
Income 2
   
Income
   
Advantage
 
     
(NPC
)
 
(NCL
)
 
(NCU
)
 
(NAC
)
Purchases
 
$
12,983,889
 
$
12,024,117
 
$
16,847,836
 
$
62,499,012
 
Sales and maturities
   
18,528,716
   
16,165,459
   
19,281,830
   
64,252,705
 

     
 
   
 
   
Insured
   
Insured
 
     
California
   
California
   
California
   
California
 
     
Dividend
   
Dividend
   
Dividend
   
Tax-Free
 
     
Advantage 2
   
Advantage 3
   
Advantage
   
Advantage
 
     
(NVX
)
 
(NZH
)
 
(NKL
)
 
(NKX
)
Purchases
 
$
36,098,754
 
$
81,633,691
 
$
43,559,316
 
$
7,965,183
 
Sales and maturities
   
38,147,419
   
83,209,836
   
46,057,683
   
7,893,115
 
 
6. Income Tax Information
The following information is presented on an income tax basis. Differences between amounts for financial statement and federal income tax purposes are primarily due to timing differences in recognizing taxable market discount, timing differences in recognizing certain gains and losses on investment transactions and the treatment of investments in inverse floating rate securities reflected as financing transactions, if any. To the extent that differences arise that are permanent in nature, such amounts are reclassified within the capital accounts as detailed below. Temporary differences do not require reclassification. Temporary and permanent differences do not impact the net asset values of the Funds.
 
At February 29, 2012, the cost and unrealized appreciation (depreciation) of investments (excluding investments in derivatives), as determined on a federal income tax basis, were as follows:
                           
     
Insured
   
Insured
             
     
California
   
California
   
California
   
California
 
     
Premium
   
Premium
   
Premium
   
Dividend
 
     
Income
   
Income 2
   
Income
   
Advantage
 
     
(NPC
)
 
(NCL
)
 
(NCU
)
 
(NAC
)
Cost of investments
 
$
126,528,290
 
$
245,024,969
 
$
108,875,141
 
$
455,349,270
 
Gross unrealized:
                         
Appreciation
 
$
11,907,834
 
$
17,458,674
 
$
10,350,251
 
$
39,816,855
 
Depreciation
   
(387,998
)
 
(338,616
)
 
(586,753
)
 
(13,189,771
)
Net unrealized appreciation (depreciation) of investments
 
$
11,519,836
 
$
17,120,058
 
$
9,763,498
 
$
26,627,084
 

110
 
Nuveen Investments

 
 

 

                 
Insured
   
Insured
 
     
California
   
California
   
California
   
California
 
     
Dividend
   
Dividend
   
Dividend
   
Tax-Free
 
     
Advantage 2
   
Advantage 3
   
Advantage
   
Advantage
 
     
(NVX
)
 
(NZH
)
 
(NKL
)
 
(NKX
)
Cost of investments
 
$
300,581,480
 
$
463,612,399
 
$
320,549,062
 
$
116,755,749
 
Gross unrealized:
                         
Appreciation
 
$
24,871,158
 
$
30,783,299
 
$
27,128,588
 
$
6,269,924
 
Depreciation
   
(7,115,399
)
 
(10,134,576
)
 
(4,160,520
)
 
(2,523,009
)
Net unrealized appreciation (depreciation) of investments
 
$
17,755,759
 
$
20,648,723
 
$
22,968,068
 
$
3,746,915
 
 
Permanent differences, primarily due to expiration of capital loss carryforwards, federal taxes paid, taxable market discount, nondeductible offering costs and nondeductible reorganization expenses, resulted in reclassifications among the Funds’ components of Common share net assets at February 29, 2012, the Funds’ tax year end, as follows:
                           
     
Insured
   
Insured
             
     
California
   
California
   
California
   
California
 
     
Premium
   
Premium
   
Premium
   
Dividend
 
     
Income
   
Income 2
   
Income
   
Advantage
 
     
(NPC
)
 
(NCL
)
 
(NCU
)
 
(NAC
)
Paid-in-surplus
 
$
(394,792
)
$
(313,044
)
$
(168,169
)
$
(12,769
)
Undistributed (Over-distribution of) net investment income
   
326,653
   
303,083
   
163,997
   
(69,999
)
Accumulated net realized gain (loss)
   
68,139
   
9,961
   
4,172
   
82,768
 

                 
Insured
   
Insured
 
     
California
   
California
   
California
   
California
 
     
Dividend
   
Dividend
   
Dividend
   
Tax-Free
 
     
Advantage 2
   
Advantage 3
   
Advantage
   
Advantage
 
     
(NVX
)
 
(NZH
)
 
(NKL
)
 
(NKX
)
Paid-in-surplus
 
$
(490,135
)
$
(1,066,267
)
$
(29,745
)
$
(152,353
)
Undistributed (Over-distribution of) net investment income
   
487,003
   
730,602
   
(53,141
)
 
148,013
 
Accumulated net realized gain (loss)
   
3,132
   
335,665
   
82,886
   
4,340
 
 
The tax components of undistributed net tax-exempt income, net ordinary income and net long-term capital gains at February 29, 2012, the Funds’ 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 *
 
$
1,963,940
 
$
3,870,061
 
$
1,798,508
 
$
8,081,307
 
Undistributed net ordinary income **
   
   
7,581
   
   
49,220
 
Undistributed net long-term capital gains
   
490,487
   
   
   
 

                 
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 *
 
$
4,680,509
 
$
4,535,787
 
$
5,438,634
 
$
1,584,639
 
Undistributed net ordinary income **
   
50,953
   
50,691
   
   
 
Undistributed net long-term capital gains
   
   
   
394,520
   
 
 
*
Undistributed net tax-exempt income (on a tax basis) has not been reduced for the dividend declared on February 1, 2012, paid on March 1, 2012.
**
Net ordinary income consists of taxable market discount income and net short-term capital gains, if any.
 
Nuveen Investments
 
111

 
 

 
 
   
Notes to
   
Financial Statements (continued)
 
The tax character of distributions paid during the Funds’ tax years ended February 29, 2012 and February 28, 2011, 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
 
2012
   
(NPC
)
 
(NCL
)
 
(NCU
)
 
(NAC
)
Distributions from net tax-exempt income***
 
$
5,740,015
 
$
11,401,551
 
$
5,690,713
 
$
21,712,743
 
Distributions from net ordinary income **
   
154,979
   
149,438
   
   
105,661
 
Distributions from net long-term capital gains****
   
502,357
   
   
   
 

     
 
   
 
   
Insured
   
Insured
 
     
California
   
California
   
California
   
California
 
     
Dividend
   
Dividend
   
Dividend
   
Tax-Free
 
     
Advantage 2
   
Advantage 3
   
Advantage
   
Advantage
 
2012
   
(NVX
)
 
(NZH
)
 
(NKL
)
 
(NKX
)
Distributions from net tax-exempt income***
 
$
16,164,056
 
$
25,521,629
 
$
15,045,390
 
$
4,948,448
 
Distributions from net ordinary income **
   
   
   
80,899
   
 
Distributions from net long-term capital gains****
   
   
   
   
 

     
Insured
   
Insured
             
     
California
   
California
   
California
   
California
 
     
Premium
   
Premium
   
Premium
   
Dividend
 
     
Income
   
Income 2
   
Income
   
Advantage
 
2011
   
(NPC
)
 
(NCL
)
 
(NCU
)
 
(NAC
)
Distributions from net tax-exempt income
 
$
5,686,773
 
$
11,251,372
 
$
5,256,853
 
$
21,325,264
 
Distributions from net ordinary income **
   
   
   
   
 
Distributions from net long-term capital gains
   
180,380
   
   
   
 

                 
Insured
   
Insured
 
     
California
   
California
   
California
   
California
 
     
Dividend
   
Dividend
   
Dividend
   
Tax-Free
 
     
Advantage 2
   
Advantage 3
   
Advantage
   
Advantage
 
2011
   
(NVX
)
 
(NZH
)
 
(NKL
)
 
(NKX
)
Distributions from net tax-exempt income
 
$
14,738,103
 
$
24,545,542
 
$
14,593,850
 
$
4,850,289
 
Distributions from net ordinary income **
   
   
   
   
 
Distributions from net long-term capital gains
   
   
   
   
 
 
**
Net ordinary income consists of taxable market discount income and net short-term capital gains, if any.
***
The Funds hereby designate these amounts paid during the fiscal year ended February 29, 2012, as Exempt Interest Dividends.
****
The Funds designated as a long-term capital gain dividend, pursuant to the Internal Revenue Code Section 852(b)(3), the amount necessary to reduce earnings and profits of the Funds related to net capital gain to zero for the tax year ended February 29, 2012.
 
At February 29, 2012, the Funds’ tax year end, the following Funds had unused capital loss carryforwards available for federal income tax purposes to be applied against future capital gains, if any. If not applied, the carryforwards will expire as follows:
                                       
     
Insured
                           
Insured
 
     
California
   
California
   
California
   
California
   
California
   
California
 
     
Premium
   
Premium
   
Dividend
   
Dividend
   
Dividend
   
Tax-Free
 
     
Income 2
   
Income
   
Advantage
   
Advantage 2
   
Advantage 3
   
Advantage
 
     
(NCL
)
 
(NCU
)
 
(NAC
)
 
(NVX
)
 
(NZH
)
 
(NKX
)
Expiration:
                                     
February 29, 2016
 
$
 
$
 
$
 
$
 
$
3,869,938
 
$
 
February 28, 2017
   
   
59,969
   
10,106,897
   
   
4,536,999
   
451,000
 
February 28, 2018
   
1,035,810
   
881,108
   
731,149
   
705,843
   
10,646,251
   
530,894
 
February 28, 2019
   
   
   
   
   
1,340,157
   
 
Total
 
$
1,035,810
 
$
941,077
 
$
10,838,046
 
$
705,843
 
$
20,393,345
 
$
981,894
 

112
 
Nuveen Investments

 
 

 
 
During the Funds’ tax year ended February 29, 2012, the following Funds utilized capital loss carryforwards as follows:

   
Insured
California
Premium
Income 2
(NCL
)
Insured
California
Dividend
Advantage
(NKL
)
Insured
California
Tax-Free
Advantage
(NKX
)
Utilized capital loss carryforwards
 
$
408,471
 
$
1,350,995
 
$
34,298
 
 
At February 29, 2012, the Funds’ tax year end, $323,840 of California Dividend Advantage 3’s (NZH) capital loss carryforward expired.
 
On December 22, 2010, the Regulated Investment Company Modernization Act of 2010 (the “Act”) was enacted, which changed various technical rules governing the tax treatment of RICs. The changes are generally effective for taxable years beginning after the date of enactment. One of the more prominent changes addresses capital loss carryforwards. Under the Act, each Fund will be permitted to carry forward capital losses incurred in taxable years beginning after the date of enactment for an unlimited period. However, any losses incurred during those future taxable years will be required to be utilized prior to the losses incurred in pre-enactment taxable years, which carry an expiration date. As a result of this ordering rule, pre-enactment capital loss carryforwards may be more likely to expire unused. Additionally, post-enactment capital loss carryforwards will retain their character as either short-term or long-term capital losses rather than being considered all short-term as permitted under previous regulation.
 
The Act also contains several provisions aimed at preserving the character of distributions made by a fiscal year RIC during the portion of its taxable year ending after October 31 or December 31, reducing the circumstances under which a RIC might be required to file amended Forms 1099 to restate previously reported distributions. Capital losses incurred that will be carried forward under the provisions of the Act are as follows:

   
California
Premium
Income
(NCU
)
California
Dividend
Advantage
(NAC
)
California
Dividend
Advantage 2
 (NVX
)
California
Dividend
Advantage 3
(NZH
)
Post-enactment losses
                         
Short-term
 
$
 
$
 
$
 
$
 
Long-term
   
1,569
   
5,081,879
   
345,491
   
1,853,006
 
 
The Funds have elected to defer losses incurred from November 1, 2011 through February 29, 2012, the Funds’ tax year end, in accordance with federal income tax rules. These losses are treated as having arisen on the first day of the following fiscal year. The following Funds have elected to defer losses as follows:

   
California
Premium
Income
(NCU
)
California
Dividend
Advantage
(NAC
)
California
Dividend
Advantage 2
(NVX
)
California
Dividend
Advantage 3
(NZH
)
Post-October capital losses
 
$
72,731
 
$
2,438,655
 
$
808,072
 
$
3,922,013
 
Late-year ordinary losses
   
   
   
   
 
 
7. Management Fees and Other Transactions with Affiliates
Each Fund’s management fee consists of two components – a fund-level fee, based only on the amount of assets within the Fund, and a complex-level fee, based on the aggregate amount of all eligible fund assets managed by the Adviser. This pricing structure enables Fund shareholders to benefit from growth in the assets within their respective Fund as well as from growth in the amount of complex-wide assets managed by the Adviser.
     
Nuveen Investments
 
113

 
 

 
 
   
Notes to
   
Financial Statements (continued)
 
The annual fund-level fee for each Fund, payable monthly, is calculated according to the following schedules:

   
Insured California Premium Income (NPC
)
   
Insured California Premium Income 2 (NCL
)
    California Premium Income (NCU )
Average Daily Managed Assets*
   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 managed assets over $5 billion
   
.3750
 

    California Dividend Advantage (NAC )
    California Dividend Advantage 2 (NVX )
    California Dividend Advantage 3 (NZH )
     Insured California Dividend Advantage (NKL )
     Insured California Tax-Free Advantage (NKX )
Average Daily Managed Assets*
   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 managed assets over $2 billion
   
.3750
 
 
The annual complex-level fee for each Fund, payable monthly, is calculated according to the following schedule:

Complex-Level Managed Asset Breakpoint Level*
 
Effective Rate at Breakpoint Level
 
$55 billion
   
.2000
%
$56 billion
   
.1996
 
$57 billion
   
.1989
 
$60 billion
   
.1961
 
$63 billion
   
.1931
 
$66 billion
   
.1900
 
$71 billion
   
.1851
 
$76 billion
   
.1806
 
$80 billion
   
.1773
 
$91 billion
   
.1691
 
$125 billion
   
.1599
 
$200 billion
   
.1505
 
$250 billion
   
.1469
 
$300 billion
   
.1445
 
 
For the fund-level and complex-level fees, managed assets include closed-end fund assets managed by the Adviser that are attributable to financial leverage. For these purposes, financial leverage includes the funds’ use of preferred stock and borrowings and certain investments in the residual interest certificates (also called inverse floating rate securities) in tender option bond (TOB) trusts, including the portion of assets held by a TOB trust that has been effectively financed by the trust’s issuance of floating rate securities, subject to an agreement by the Adviser as to certain funds to limit the amount of such assets for determining managed assets in certain circumstances. The complex-level fee is calculated based upon the aggregate daily managed assets of all Nuveen Funds that constitute “eligible assets.” Eligible assets do not include assets attributable to investments in other Nuveen Funds and assets in excess of $2 billion added to the Nuveen Fund complex in connection with the Adviser’s assumption of the management of the former First American Funds effective January 1, 2011. As of February 29, 2012, the complex-level fee rate for these Funds was .1724%.
 
114
 
Nuveen Investments

 
 

 

The management fee compensates the Adviser for overall investment advisory and administrative services and general office facilities. The Adviser is responsible for each Fund’s overall investment strategy and asset allocation decisions. The Adviser has entered into sub-advisory agreements with Nuveen Asset Management, LLC (the “Sub-Adviser”), a wholly-owned subsidiary of the Adviser, under which the Sub-Adviser manages the investment portfolios of the Funds. The Sub-Adviser is compensated for its services to the Funds from the management fees paid to the Adviser.
 
The Funds pay no compensation directly to those of its directors/trustees who are affiliated with the Adviser or to its officers, all of whom receive remuneration for their services to the Funds from the Adviser or its affiliates. The Board of Directors/Trustees has adopted a deferred compensation plan for independent directors/trustees that enables directors/trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from certain Nuveen-advised funds. Under the plan, deferred amounts are treated as though equal dollar amounts had been invested in shares of select Nuveen-advised funds.
 
For the first ten years of California Dividend Advantage 2’s (NVX) operations, the Adviser has agreed to reimburse the Fund, as a percentage of average daily managed assets, for fees and expenses in the amounts and for the time periods set forth below:

Year Ending
March 31,
   
Year Ending
March 31,
   
2001*
.30
%
2007
.25
%
2002
.30
 
2008
.20
 
2003
.30
 
2009
.15
 
2004
.30
 
2010
.10
 
2005
.30
 
2011
.05
 
2006
.30
       
 
* From the commencement of operations.
 
The Adviser has not agreed to reimburse California Dividend Advantage 2 (NVX) for any portion of its fees and expenses beyond March 31, 2011. For the first ten years of California Dividend Advantage 3’s (NZH) operations, the Adviser has agreed to reimburse the Fund, as a percentage of average daily managed assets, for fees and expenses in the amounts and for the time periods set forth below:

Year Ending
September 30,
   
Year Ending
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 managed assets, for fees and expenses in the amounts and for the time periods set forth below:

Year Ending
March 31,
   
Year Ending
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.
     
Nuveen Investments
 
115

 
 

 
 
     
 
Notes to
 
Financial Statements (continued)
 
8. New Accounting Pronouncements
 
Fair Value Measurements and Disclosures
On May 12, 2011, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standards Update (“ASU”) No. 2011-04 (“ASU No. 2011-04”) modifying Topic 820, Fair Value Measurements and Disclosures. At the same time, the International Accounting Standards Board (“IASB”) issued International Financial Reporting Standard (“IFRS”) 13, Fair Value Measurement. The objective of the FASB and IASB is convergence of their guidance on fair value measurements and disclosures. Specifically, ASU No. 2011-04 requires reporting entities to disclose i) the amounts of any transfers between Level 1 and Level 2 and the reasons for the transfers and ii) for Level 3 fair value measurements, a) quantitative information about significant unobservable inputs used, b) a description of the valuation processes used by the reporting entity and c) a narrative description of the sensitivity of the fair value measurement to changes in unobservable inputs if a change in those inputs might result in a significantly higher or lower fair value measurement. The effective date of ASU No. 2011-04 is for interim and annual periods beginning after December 15, 2011. At this time, management is evaluating the implications of this guidance and the impact it will have to the financial statement amounts and footnote disclosures, if any.
     
116
 
Nuveen Investments

 
 

 
 
Board Members & Officers (Unaudited)
 
   
The management of the Funds, including general supervision of the duties performed for the Funds by the Adviser, is the responsibility of the board members of the Funds. The number of board members of the Funds is currently set at ten. None of the board members who are not “interested” persons of the Funds (referred to herein as “independent board members”) has ever been a director or employee of, or consultant to, Nuveen or its affiliates. The names and business addresses of the board members and officers of the Funds, their principal occupations and other affiliations during the past five years, the number of portfolios each oversees and other directorships they hold are set forth below.

 
Name,
Birthdate
& Address
 
Position(s)
Held with the Funds
 
Year First
Elected or
Appointed
and Term(1)
 
Principal
Occupation(s)
including other
Directorships
During Past 5 Years
 
Number
of Portfolios
in Fund Complex
Overseen by
Board Member
                   
Independent Board Members:
           
                   
ROBERT P. BREMNER
8/22/40
333 W. Wacker Drive
Chicago, IL 60606
 
 
Chairman of
the Board
and Board Member
 
 
 
1996
Class III
 
Private Investor and Management Consultant; Treasurer and Director, Humanities Council of Washington, D.C.; Board Member, Independent Directors Council affiliated with the Investment Company Institute.
 
 
 
235
                   
JACK B. EVANS
10/22/48
333 W. Wacker Drive
Chicago, IL 60606
 
 
 
Board Member
 
 
 
1999
Class III
 
President, The Hall-Perrine Foundation, a private philanthropic corporation (since 1996); Director and Chairman, United Fire Group, a publicly held company; member of the Board of Regents for the State of Iowa University System; Director, Source Media Group; Life Trustee of Coe College and the Iowa College Foundation; formerly, Director, Alliant Energy; formerly, Director, Federal Reserve Bank of Chicago; formerly, President and Chief Operating Officer, SCI Financial Group, Inc., a regional financial services firm.
 
 
 
235
                   
WILLIAM C. HUNTER
3/6/48
333 W. Wacker Drive
Chicago, IL 60606
 
 
 
Board Member
 
 
 
2004
Class I
 
Dean, Tippie College of Business, University of Iowa (since 2006); Director (since 2004) of Xerox Corporation; Director (since 2005), Beta Gamma Sigma International Honor Society; Director of Wellmark, Inc. (since 2009); formerly, Dean and Distinguished Professor of Finance, School of Business at the University of Connecticut (2003-2006); previously, Senior Vice President and Director of Research at the Federal Reserve Bank of Chicago (1995-2003); formerly, Director (1997-2007), Credit Research Center at Georgetown University.
 
 
 
235
                   
DAVID J. KUNDERT
10/28/42
333 W. Wacker Drive
Chicago, IL 60606
 
 
 
Board Member
 
 
 
2005
Class II
 
Director, Northwestern Mutual Wealth Management Company; retired (since 2004) as Chairman, JPMorgan Fleming Asset Management, President and CEO, Banc One Investment Advisors Corporation, and President, One Group Mutual Funds; prior thereto, Executive Vice President, Banc One Corporation and Chairman and CEO, Banc One Investment Management Group; Member, Board of Regents, Luther College; member of the Wisconsin Bar Association; member of Board of Directors, Friends of Boerner Botanical Gardens; member of Board of Directors and Chair of Investment Committee, Greater Milwaukee Foundation.
 
 
 
235
                   
WILLIAM J. SCHNEIDER
9/24/44
333 W. Wacker Drive
Chicago, IL 60606
 
 
 
Board Member
 
 
 
1996
Class III
 
Chairman of Miller-Valentine Partners Ltd., a real estate investment company; formerly, Senior Partner and Chief Operating Officer(retired 2004) of Miller-Valentine Group; member, University of Dayton Business School Advisory Council; member, Mid-America Health System Board; formerly, member and chair, Dayton Philharmonic Orchestra Association; formerly, member, Business Advisory Council, Cleveland Federal Reserve Bank.
 
 
 
235

Nuveen Investments
 
117

 
 

 
 
Board Members & Officers (Unaudited) (continued)
                   
 
Name,
Birthdate
& Address
 
Position(s) Held
with the Funds
 
Year First
Elected or
Appointed
and Term(1)
 
Principal
Occupation(s)
Including other
Directorships
During Past 5 Years
 
Number
of Portfolios
in Fund Complex
Overseen by
Board Member
                   
Independent Board Members:
           
             
JUDITH M. STOCKDALE
12/29/47
333 W. Wacker Drive
Chicago, IL 60606
 
 
Board Member
 
 
1997
Class I
 
Executive Director, Gaylord and Dorothy Donnelley Foundation (since 1994); prior thereto, Executive Director, Great Lakes Protection Fund (1990-1994).
 
 
235
   
 
             
CAROLE E. STONE
6/28/47
333 W. Wacker Drive
Chicago, IL 60606
 
 
 
Board Member
 
 
 
2007
Class I
 
Director, Chicago Board Options Exchange (since 2006); Director, C2 Options Exchange, Incorporated (since 2009); formerly, Commissioner, New York State Commission on Public Authority Reform (2005-2010); formerly, Chair, New York Racing Association Oversight Board (2005-2007).
 
 
 
235
                   
VIRGINIA L. STRINGER
8/16/44
333 W. Wacker Drive
Chicago, IL 60606
 
 
 
Board Member
 
 
 
2011
 
Board Member, Mutual Fund Directors Forum; Member, Governing Board, Investment Company Institute’s Independent Directors Council; governance consultant and non-profit board member; former Owner and President, Strategic Management Resources, Inc. a management consulting firm; previously, held several executive positions in general management, marketing and human resources at IBM and The Pillsbury Company; Independent Director, First American Fund Complex (1987-2010) and Chair (1997-2010).
 
 
 
235
                   
TERENCE J. TOTH
9/29/59
333 W. Wacker Drive
Chicago, IL 60606
 
 
 
Board Member
 
 
 
2008
Class II
 
Director, Legal & General Investment Management America, Inc. (since 2008); Managing Partner, Promus Capital (since 2008);formerly, CEO and President, Northern Trust Global Investments (2004-2007); Executive Vice President, Quantitative Management & Securities Lending (2000-2004); prior thereto, various positions with Northern Trust Company (since 1994); member: Goodman Theatre Board (since 2004), Chicago Fellowship Board (since 2005) and Catalyst Schools of Chicago Board (since 2008); formerly, member: Northern Trust Mutual Funds Board (2005-2007),Northern Trust Global Investments Board (2004-2007), Northern Trust Japan Board (2004-2007), Northern Trust Securities Inc. Board (2003-2007) and Northern Trust Hong Kong Board (1997-2004).
 
 
 
235
                   
Interested Board Member:
           
                   
JOHN P. AMBOIAN(2)
6/14/61
333 W. Wacker Drive
Chicago, IL 60606
 
 
 
Board Member
 
 
 
2008
Class II
 
Chief Executive Officer and Chairman (since 2007) and Director (since 1999) of Nuveen Investments, Inc., formerly, President (1999-2007);Chief Executive Officer (since 2007) of Nuveen Investments Advisers, Inc.; Director (since 1998) formerly, Chief Executive Officer (2007-2010) of Nuveen Fund Advisors, Inc.
 
 
 
235

118
 
Nuveen Investments

 
 

 

 
Name,
Birthdate
and Address
 
Position(s) Held
with the Funds
 
Year First
Elected or
Appointed(3)
 
Principal
Occupation(s)
During Past 5 Years
 
Number
of Portfolios
in Fund Complex
Overseen by Officer
                   
Officers of the Funds:                
                 
GIFFORD R. ZIMMERMAN
9/9/56
333 W. Wacker Drive
Chicago, IL 60606
 
 
Chief
Administrative
Officer
 
 
 
1988
 
Managing Director (since 2002), Assistant Secretary and Associate General Counsel of Nuveen Securities, LLC; Managing Director (since 2004) and Assistant Secretary (since 1994) of Nuveen Investments, Inc.; Managing Director (since 2002), Assistant Secretary (since 1997) and Co-General Counsel (since 2011) of Nuveen Fund Advisors, Inc.; Managing Director, Assistant Secretary and Associate General Counsel of Nuveen Asset Management, LLC (since 2011);Managing Director, Associate General Counsel and Assistant Secretary, of Symphony Asset Management LLC (since 2003); Vice President and Assistant Secretary of NWQ Investment Management Company, LLC (since 2002), Nuveen Investments Advisers Inc. (since 2002),Santa Barbara Asset Management, LLC (since 2006), and of Winslow Capital Management Inc. (since 2010) Chief Administrative Officer and Chief Compliance Officer (since 2010) of Nuveen Commodities Asset Management, LLC; Chartered Financial Analyst.
 
 
 
235
                   
WILLIAM ADAMS IV
6/9/55
333 W. Wacker Drive
Chicago, IL 60606
 
 
 
Vice President
 
 
 
2007
 
Senior Executive Vice President, Global Structured Products (since 2010), formerly, Executive Vice President (1999-2010) of Nuveen Securities, LLC; Co-President of Nuveen Fund Advisors, Inc. (since 2011); formerly, Managing Director (2010-2011) of Nuveen Commodities Asset Management, LLC.
 
 
 
133
                   
CEDRIC H. ANTOSIEWICZ
1/11/62
333 W. Wacker Drive
Chicago, IL 60606
 
 
 
Vice President
 
 
 
2007
 
Managing Director of Nuveen Securities, LLC.
 
 
 
133
                   
MARGO L. COOK
4/11/64
333 W. Wacker Drive
Chicago, IL 60606
 
 
 
Vice President
 
 
 
2009
 
Executive Vice President (since 2008) of Nuveen Investments, Inc. and of Nuveen Fund Advisors, Inc. (since 2011); Managing Director-Investment Services of Nuveen Commodities Asset Management, LLC (since August 2011), previously, Head of Institutional Asset Management (2007-2008) of Bear Stearns Asset Management; Head of Institutional Asset Management (1986-2007)of Bank of NY Mellon; Chartered Financial Analyst.
 
 
 
235
                   
LORNA C. FERGUSON
10/24/45
333 W. Wacker Drive
Chicago, IL 60606
 
 
 
Vice President
 
 
 
1998
 
Managing Director (since 2005) of Nuveen Fund Advisors, Inc. and Nuveen Securities, LLC (since 2004).
 
 
 
235
                   
STEPHEN D. FOY
5/31/54
333 W. Wacker Drive
Chicago, IL 60606
 
 
 
Vice President
and Controller
 
 
 
1998
 
Senior Vice President (since 2010), formerly, Vice President (2005-2010) and Funds Controller of Nuveen Securities, LLC; Vice President of Nuveen Fund Advisors, Inc.; Chief Financial Officer of Nuveen Commodities Asset Management, LLC; (since 2010) Certified Public Accountant.
 
 
 
235

Nuveen Investments
 
119

 
 

 
 
Board Members & Officers (Unaudited) (continued)
                   
 
Name,
Birthdate
and Address
 
Position(s) Held
with the Funds
 
Year First
Elected or
Appointed(3)
 
Principal
Occupation(s)
During Past 5 Years
 
Number
of Portfolios
in Fund Complex
Overseen
by Officer
                   
Officers of the Funds:
           
             
SCOTT S. GRACE
8/20/70
333 W. Wacker Drive
Chicago, IL 60606
 
 
Vice President
and Treasurer
 
 
 
2009
 
Managing Director, Corporate Finance & Development, Treasurer (since 2009) of Nuveen Securities, LLC; Managing Director and Treasurer (since 2009) of Nuveen Fund Advisors, Inc., Nuveen Investment Solutions, Inc., Nuveen Investments Advisers, Inc., Nuveen Investments Holdings Inc. and (since 2011) Nuveen Asset Management, LLC; Vice President and Treasurer of NWQ Investment Management Company, LLC, Tradewinds Global Investors, LLC, Symphony Asset Management LLC and Winslow Capital Management, Inc.; Vice President of Santa Barbara Asset Management, LLC; formerly, Treasurer (2006-2009), Senior Vice President (2008-2009), previously, Vice President (2006-2008) of Janus Capital Group, Inc.; formerly, Senior Associate in Morgan Stanley’s Global Financial Services Group (2000-2003); Chartered Accountant Designation.
 
 
 
235
                   
WALTER M. KELLY
2/24/70
333 W. Wacker Drive
Chicago, IL 60606
 
 
Chief Compliance
Officer and
Vice President
 
 
 
2003
 
Senior Vice President (since 2008) and Assistant Secretary (since 2003) of Nuveen Fund Advisors, Inc.
 
 
 
235
                   
TINA M. LAZAR
8/27/61
333 W. Wacker Drive
Chicago, IL 60606
 
 
 
Vice President
 
 
 
2002
 
Senior Vice President (since 2010), formerly, Vice President (2005-2010) of Nuveen Fund Advisors, Inc.
 
 
 
235
                   
KEVIN J. MCCARTHY
3/26/66
333 W. Wacker Drive
Chicago, IL 60606
 
 
Vice President
and Secretary
 
 
 
2007
 
Managing Director (since 2008), formerly, Vice President (2007-2008), Nuveen Securities, LLC; Managing Director (since 2008), Assistant Secretary (since 2007) and Co-General Counsel (since 2011)of Nuveen Fund Advisors, Inc.; Managing Director, Assistant Secretary and Associate General Counsel (since 2011) of Nuveen Asset Management, LLC; Managing Director (since 2008), and Assistant Secretary, Nuveen Investment Holdings, Inc.; Vice President (since 2007) and Assistant Secretary of Nuveen Investments Advisers Inc., NWQ Investment Management Company, LLC, NWQ Holdings, LLC, Symphony Asset Management LLC, Santa Barbara Asset Management, LLC, and of Winslow Capital Management, Inc. (since 2010); Vice President and Secretary (since 2010) of Nuveen Commodities Asset Management, LLC; prior thereto, Partner, Bell, Boyd & Lloyd LLP (1997-2007).
 
 
 
235

120
 
Nuveen Investments

 
 

 

 
Name,
Birthdate
and Address
 
Position(s) Held
with the Funds
 
Year First
Elected or
Appointed(3)
 
Principal
Occupation(s)
During Past 5 Years
 
Number
of Portfolios
in Fund Complex
Overseen
by Officer
                   
Officers of the Funds:
           
             
KATHLEEN L. PRUDHOMME
3/30/53
901 Marquette Avenue
Minneapolis, MN 55402
 
 
Vice President and
Assistant Secretary
 
 
 
2011
 
Managing Director, Assistant Secretary and Co-General Counsel (since 2011) of Nuveen Fund Advisors, Inc.; Managing Director, Assistant Secretary and Associate General Counsel (since 2011) of Nuveen Asset Management, LLC; Managing Director and Assistant Secretary (since 2011) of Nuveen Securities, LLC; formerly, Deputy General Counsel, FAF Advisors, Inc. (2004-2010).
 
 
 
235
 
(1)
For California Premium Income (NCU), California Dividend Advantage (NAC), California Dividend Advantage 2 (NVX), California Dividend Advantage 3 (NZH), Insured California Dividend Advantage (NKL) and Insured California Tax-Free Advantage (NKX), the Board of Trustees is divided into three classes, Class I, Class II, and Class III, with each being elected to serve until the third succeeding annual shareholders’ meeting subsequent to its election or thereafter in each case when its respective successors are duly elected or appointed, except two board members are elected by the holders of Preferred Shares to serve until the next annual shareholders’ meeting subsequent to its election or thereafter in each case when its respective successors are duly elected or appointed. For Insured California Premium Income (NPC) and Insured California Premium Income 2 (NCL), the Board Members serve a one year term to serve until the next annual meeting or until their successors shall have been duly elected and qualified. The year first elected or appointed represents the year in which the board member was first elected or appointed to any fund in the Nuveen Complex.
(2)
Mr. Amboian is an interested trustee because of his position with Nuveen Investments, Inc. and certain of its subsidiaries, which are affiliates of the Nuveen Funds.
(3)
Officers serve one year terms through August of each year. The year first elected or appointed represents the year in which the Officer was first elected or appointed to any fund in the Nuveen Complex.
 
Nuveen Investments
 
121
 
 
 

 
 
Reinvest Automatically,
Easily and Conveniently
 
Nuveen makes reinvesting easy. A phone call is all it takes to set up your reinvestment account.
 
Nuveen Closed-End Funds Automatic Reinvestment Plan
 
Your Nuveen Closed-End Fund allows you to conveniently reinvest 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 compounding. Just like distributions in cash, there may be times when income or capital gains taxes may be payable on 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 distributions, the date of investment, the shares acquired and the price per share, and the total number of shares you own.
 
How shares are purchased
 
The shares you acquire by reinvesting will either be purchased on the open market or newly issued by the Fund. If the shares are trading at or above net asset value at the time of valuation, the Fund will issue new shares at the greater of the net asset value or 95% of the then-current market price. If the shares are trading at less than net asset value, shares for your account will be purchased on the open market. If the Plan Agent begins purchasing Fund shares on the open market while shares are trading below net asset value, but the Fund’s shares subsequently trade at or above their net asset value before the Plan Agent is able to complete its purchases, the Plan Agent may cease open-market purchases and may invest the uninvested portion of the distribution in newly-issued Fund shares at a price equal to the greater of the shares’ net asset value or 95% of the shares’ market value on the last business day immediately prior to the purchase date. Distributions received to purchase shares in the open market will normally be invested shortly after the distribution payment date. No interest will be paid on distributions awaiting reinvestment. Because the market price of the shares may increase before purchases are completed, the average purchase price per share may
     
122
 
Nuveen Investments

 
 

 
 
exceed the market price at the time of valuation, resulting in the acquisition of fewer shares than if the 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.
 
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 distributions
 
For more information on the Nuveen Automatic Reinvestment Plan or to enroll in or withdraw from the Plan, speak with your financial advisor or call us at (800) 257-8787.
     
Nuveen Investments
 
123

 
 

 

Glossary of Terms
Used in this Report
   
Auction Rate Bond: An auction rate bond is a security whose interest payments are adjusted periodically through an auction process, which process typically also serves as a means for buying and selling the bond. Auctions that fail to attract enough buyers for all the shares offered for sale are deemed to have “failed,” with current holders receiving a formula-based interest rate until the next scheduled auction.
   
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 market-value-weighted average of the effective maturity dates of the individual securities including cash. In the case of a bond that has been advance-refunded to a call date, the effective maturity is the date on which the bond is scheduled to be redeemed using the proceeds of an escrow account. In most other cases the effective maturity is the stated maturity date of the security.
   
Effective Leverage: Effective leverage is a Fund’s effective economic leverage, and includes both regulatory leverage (see below) and the leverage effects of certain derivative investments in the Fund’s portfolio. Currently, the leverage effects of Tender Option Bond (TOB) inverse floater holdings are included in effective leverage values, in addition to any regulatory leverage.
   
Inverse Floating Rate Securities: Inverse floating rate securities, also known as inverse floaters or tender option bonds (TOBs), are created by depositing a municipal bond, typically with a fixed interest rate, into a special purpose trust created by a broker-dealer. This trust, in turn, (a) issues floating rate certificates typically paying short-term tax-exempt interest rates to third parties in amounts equal to some fraction of the deposited bond’s par amount or market value, and (b) issues an inverse floating rate certificate (sometimes referred to as an “inverse floater”) to an investor (such as a Fund) interested in gaining investment exposure to a long-term municipal bond. The income received by the holder of the inverse floater varies inversely with the short-term rate paid to the floating rate certificates’ holders, and in most circumstances the holder of the inverse floater bears substantially all of the underlying bond’s downside investment risk. The holder of the inverse floater typically also benefits disproportionately from any potential appreciation of the underlying bond’s value. Hence, an inverse floater essentially represents an investment in the underlying bond on a leveraged basis.
   
Leverage: Using borrowed money to invest in securities or other assets, seeking to increase the return of an investment or portfolio.

124
 
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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.
   
Lipper California Municipal Debt Funds Classification Average: Calculated using the returns of all closed-end funds in this category for each period as follows: 1-year,7 funds; 5-year, 7 funds; and 10-year, 4 funds. Lipper returns account for the effects of management fees and assume reinvestment of distributions, but do not reflect any applicable sales charges. The Lipper average is not available for direct investment.
   
Lipper Single-State Insured Municipal Debt Funds Classification Average: Calculated using the returns of all closed-end funds in this category for each period as follows: 1-year, 44 funds; 5-year, 44 funds; and 10-year, 24 funds. Lipper returns account for the effects of management fees and assume reinvestment of dividends, but do not reflect any applicable sales charges. The Lipper average is not available for direct investment.
   
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): The net market value of all securities held in a portfolio.
   
Net Asset Value (NAV) Per Share: The market value of one share of a mutual fund or closed-end fund. For a Fund, the NAV is calculated daily by taking the Fund’s total assets (securities, cash, and accrued earnings), subtracting the Fund’s liabilities, and dividing by the number of shares outstanding.
   
Pre-Refunding: Pre-Refunding, also known as advanced refundings or refinancings, is a procedure used by state and local governments to refinance municipal bonds to lower interest expenses. The issuer sells new bonds with a lower yield and uses the proceeds to buy U.S. Treasury securities, the interest from which is used to make payments on the higher-yielding bonds. Because of this collateral, pre-refunding generally raises a bond’s credit rating and thus its value.
   
Regulatory Leverage: Regulatory leverage consists of preferred shares issued by or borrowings of a fund. Both of these are part of a Fund’s capital structure. Regulatory leverage is sometimes referred to as “‘40 Act Leverage” and is subject to asset coverage limits set in the Investment Company Act of 1940.
   
Standard & Poor’s (S&P) California Municipal Bond Index: An unleveraged, market value-weighted index designed to measure the performance of the tax-exempt, investment California municipal bond market, respectively. Index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees. It is not possible to invest directly in an index.

Nuveen Investments
 
125

 
 

 
 
Glossary of Terms
Used in this Report (continued)
 
Standard & Poor’s (S&P) Insured National Municipal Bond Index: An unleveraged, market value-weighted index designed to measure the performance of the insured segment of the U.S. municipal bond market. Index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees. It is not possible to invest directly in an index.
   
Standard & Poor’s (S&P) National Municipal Bond Index: An unleveraged, market value-weighted index designed to measure the performance of the tax-exempt, investment-grade U.S. municipal bond market. Index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees. It is not possible to invest directly in an index.
   
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.
   
Zero Coupon Bond: Zero Coupon Bond: A zero coupon bond does not pay a regular interest coupon to its holders during the life of the bond. Tax-exempt income to the holder of the bond comes from accretion of the difference between the original purchase price of the bond at issuance and the par value of the bond at maturity and is effectively paid at maturity. The market prices of zero coupon bonds generally are more volatile than the market prices of bonds that pay interest periodically.

126
 
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Additional Fund Information
 
Board of
Directors/Trustees
John P. Amboian
Robert P. Bremner
Jack B. Evans
William C. Hunter
David J. Kundert
William J. Schneider
Judith M. Stockdale
Carole E. Stone
Virginia L. Stringer
Terence J. Toth
 
Fund Manager
Nuveen Fund Advisors, Inc.
333 West Wacker Drive
Chicago, IL 60606
 
Custodian
State Street Bank
& Trust Company
Boston, MA
 
Transfer Agent and
Shareholder Services
State Street Bank &
Trust Company
Nuveen Funds
P.O. Box 43071
Providence, RI 02940-3071
(800) 257-8787
 
Legal Counsel
Chapman and Cutler LLP
Chicago, IL
 
Independent Registered
Public Accounting Firm
Ernst & Young LLP
Chicago, IL
 
Quarterly Portfolio of Investments and Proxy Voting Information
 
You may obtain (i) each Fund’s quarterly portfolio of investments, (ii) information regarding how each Fund voted proxies relating to portfolio securities held during the most recent twelve-month period ended June 30, and (iii) a description of the policies and procedures that each Fund used to determine how to vote proxies relating to portfolio securities without charge, upon request, by calling Nuveen Investments toll-free at (800) 257-8787 or on Nuveen’s website at www.nuveen.com.
 
You may also obtain this and other Fund information directly from the Securities and Exchange Commission (SEC). The SEC may charge a copying fee for this information. Visit the SEC on-line at http://www.sec.gov or in person at the SEC’s Public Reference Room in Washington, D.C. Call the SEC at (202) 942-8090 for room hours and operation. You may also request Fund information by sending an e-mail request to publicinfo@sec.gov or by writing to the SEC’s Public References Section at 100 F Street NE, Washington, D.C. 20549.
 
CEO Certification Disclosure
 
Each Fund’s Chief Executive Officer (CEO) has submitted to the New York Stock Exchange (NYSE) the annual CEO certification as required by Section 303A.12(a) of the NYSE Listed Company Manual.
 
Each Fund has filed with the SEC the certification of its Chief Executive Officer and Chief Financial Officer required by Section 302 of the Sarbanes-Oxley Act.
 
Common and Preferred Share Information
 
Each Fund intends to repurchase and/or redeem shares of its own common and/or auction rate preferred stock in the future at such times and in such amounts as is deemed advisable. During the period covered by this report, the Funds repurchased and/or redeemed shares of their common and/or auction rate preferred stock as shown in the accompanying table.

Fund
 
Common Shares
Repurchased
 
Preferred Shares
Redeemed
 
NPC
   
   
 
NCL
   
   
 
NCU
   
   
 
NAC
   
   
5,421
 
NVX
   
   
1,598
 
NZH
   
   
2,780
 
NKL
   
   
4,150
 
NKX
   
   
 
 
Any future repurchases will be reported to shareholders in the next annual or semi-annual report.
     
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127

 
 

 
 
Nuveen Investments:
Serving Investors for Generations
 
Since 1898, financial advisors and their clients have relied on Nuveen Investments to provide dependable investment solutions through continued adherence to proven, long-term investing principles. Today, we offer a range of high quality equity and fixed-income solutions designed to be integral components of a well-diversified core portfolio.
 
Focused on meeting investor needs.
Nuveen Investments provides high-quality investment services designed to help secure the long-term goals of institutional and individual investors as well as the consultants and financial advisors who serve them. Nuveen Investments markets a wide range of specialized investment solutions which provide investors access to capabilities of its high-quality boutique investment affiliates-Nuveen Asset Management, Symphony Asset Management, NWQ Investment Management Company, Santa Barbara Asset Management, Tradewinds Global Investors, Winslow Capital Management and Gresham Investment Management. In total, Nuveen Investments managed $220 billion as of December 31, 2011.
 
Find out how we can help you.
To learn more about how the products and services of Nuveen Investments may be able to help you meet your financial goals, talk to your financial advisor, or call us at (800) 257-8787. Please read the information provided carefully before you invest. Investors should consider the investment objective and policies, risk considerations, charges and expenses of any investment carefully. Where applicable, be sure to obtain a prospectus, which contains this and other relevant information. To obtain a prospectus, please contact your securities representative or Nuveen Investments, 333 W. Wacker Dr., Chicago, IL 60606. Please read the prospectus carefully before you invest or send money. Learn more about Nuveen Funds at: www.nuveen.com/cef
 
Distributed by
Nuveen Securities, LLC
333 West Wacker Drive
Chicago, IL 60606
www.nuveen.com
 
EAN-B-0212D


 
 

 
 
ITEM 2. CODE OF ETHICS.

As of the end of the period covered by this report, the registrant has adopted a code of ethics that applies to the registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. There were no amendments to or waivers from the Code during the period covered by this report. The registrant has posted the code of ethics on its website at www.nuveen.com/CEF/Shareholder. (To view the code, click on Fund Governance and then click on Code of Conduct.)

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.

The registrant's Board of Directors or Trustees (“Board”) determined that the registrant has at least one “audit committee financial expert” (as defined in Item 3 of Form N-CSR) serving on its Audit Committee. The registrant's audit committee financial expert is Carole E. Stone, who is “independent” for purposes of Item 3 of Form N-CSR.

Ms. Stone served for five years as Director of the New York State Division of the Budget. As part of her role as Director, Ms. Stone was actively involved in overseeing the development of the State's operating, local assistance and capital budgets, its financial plan and related documents; overseeing the development of the State's bond-related disclosure documents and certifying that they fairly presented the State's financial position; reviewing audits of various State and local agencies and programs; and coordinating the State's system of internal audit and control. Prior to serving as Director, Ms. Stone worked as a budget analyst/examiner with increasing levels of responsibility over a 30 year period, including approximately five years as Deputy Budget Director.  Ms. Stone has also served as Chair of the New York State Racing Association Oversight Board, as Chair of the Public Authorities Control Board, as a Commissioner on the New York State Commission on Public Authority Reform and as a member of the Boards of Directors of several New York State public authorities. These positions have involved overseeing operations and finances of certain entities and assessing the adequacy of project/entity financing and financial reporting. Currently, Ms. Stone is on the Board of Directors of CBOE Holdings, Inc., of the Chicago Board Options Exchange, and of C2 Options Exchange. Ms. Stone's position on the boards of these entities and as a member of both CBOE Holdings' Audit Committee and its Finance Committee has involved, among other things, the oversight of audits, audit plans and preparation of financial statements.
 
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

Nuveen California Dividend Advantage Municipal Fund

The following tables show the amount of fees that Ernst & Young LLP, the Fund's auditor, billed to the Fund during the Fund's last two full fiscal years. For engagements with Ernst & Young LLP the Audit Committee approved in advance all audit services and non-audit services that Ernst & Young LLP provided to the Fund, except for those non-audit services that were subject to the pre-approval exception under Rule 2-01 of Regulation S-X (the “pre-approval exception”). The pre-approval exception for services provided directly to the Fund waives the pre-approval requirement for services other than audit, review or attest services if: (A) the aggregate amount of all such services provided constitutes no more than 5% of the total amount of revenues paid by the Fund to its accountant during the fiscal year in which the services are provided; (B) the Fund did not recognize the services as non-audit services at the time of the engagement; and (C) the services are promptly brought to the Audit Committee's attention, and the Committee (or its delegate) approves the services before the audit is completed.

The Audit Committee has delegated certain pre-approval responsibilities to its Chairman (or, in his absence, any other member of the Audit Committee).

SERVICES THAT THE FUND'S AUDITOR BILLED TO THE FUND


 
Audit Fees Billed
   
Audit-Related Fees
   
Tax Fees
   
All Other Fees
 
Fiscal Year Ended
to Fund 1
   
Billed to Fund 2
   
Billed to Fund 3
   
Billed to Fund 4
 
February 29, 2012
$ 21,200     $ 1,500     $ 0     $ 0  
                               
Percentage approved
  0 %     0 %     0 %     0 %
pursuant to
                             
pre-approval
                             
exception
                             
                               
February 28, 2011
$ 18,200     $ 6,250     $ 0     $ 850  
                               
Percentage approved
  0 %     0 %     0 %     0 %
pursuant to
                             
pre-approval
                             
exception
                             
                               
1 "Audit Fees" are the aggregate fees billed for professional services for the audit of the Fund's annual financial statements and services
         
provided in connection with statutory and regulatory filings or engagements.
                         
                               
2 "Audit Related Fees" are the aggregate fees billed for assurance and related services reasonably related to the performance of the
                 
audit or review of financial statements and are not reported under "Audit Fees".
                         
                               
3 "Tax Fees" are the aggregate fees billed for professional services for tax advice, tax compliance, and tax planning.
                 
                               
4 "All Other Fees" are the aggregate fees billed for products and services for agreed upon procedures engagements performed for leveraged funds.
         

SERVICES THAT THE FUND'S AUDITOR BILLED TO THE ADVISER AND AFFILIATED FUND SERVICE PROVIDERS

The following tables show the amount of fees billed by Ernst & Young LLP to Nuveen Fund Advisors, Inc. (formerly Nuveen Asset Management) (the “Adviser” or “NFA”), and any entity controlling, controlled by or under common control with the Adviser that provides ongoing services to the Fund (“Affiliated Fund Service Provider”), for engagements directly related to the Fund's operations and financial reporting, during the Fund's last two full fiscal years.
 
The tables also show the percentage of fees subject to the pre-approval exception. The pre-approval exception for services provided to the Adviser and any Affiliated Fund Service Provider (other than audit, review or attest services) waives the pre-approval requirement if: (A) the aggregate amount of all such services provided constitutes no more than 5% of the total amount of revenues paid to Ernst & Young LLP by the Fund, the Adviser and Affiliated Fund Service Providers during the fiscal year in which the services are provided that would have to be pre-approved by the Audit Committee; (B) the Fund did not recognize the services as non-audit services at the time of the engagement; and (C) the services are promptly brought to the Audit Committee's attention, and the Committee (or its delegate) approves the services before the Fund's audit is completed.

Fiscal Year Ended
Audit-Related Fees
Tax Fees Billed to
All Other Fees
 
Billed to Adviser and
Adviser and
Billed to Adviser
 
Affiliated Fund
Affiliated Fund
and Affiliated Fund
 
Service Providers
Service Providers
Service Providers
February 29, 2012
 $                                0
 $                                      0
 $                                    0
       
Percentage approved
0%
0%
0%
pursuant to
     
pre-approval
     
exception
     
February 28, 2011
 $                                0
 $                                      0
 $                                    0
       
Percentage approved
0%
0%
0%
pursuant to
     
pre-approval
     
exception
     
 
NON-AUDIT SERVICES

The following table shows the amount of fees that Ernst & Young LLP billed during the Fund's last two full fiscal years for non-audit services. The Audit Committee is required to pre-approve non-audit services that Ernst & Young LLP provides to the Adviser and any Affiliated Fund Services Provider, if the engagement related directly to the Fund's operations and financial reporting (except for those subject to the pre-approval exception described above). The Audit Committee requested and received information from Ernst & Young LLP about any non-audit services that Ernst & Young LLP rendered during the Fund's last fiscal year to the Adviser and any Affiliated Fund Service Provider. The Committee considered this information in evaluating Ernst & Young LLP's independence.

Fiscal Year Ended
 
Total Non-Audit Fees
   
   
billed to Adviser and
   
   
Affiliated Fund Service
Total Non-Audit Fees
 
   
Providers (engagements
billed to Adviser and
 
   
related directly to the
Affiliated Fund Service
 
 
Total Non-Audit Fees
operations and financial
Providers (all other
 
 
Billed to Fund
reporting of the Fund)
engagements)
Total
February 29, 2012
 $                                0
 $                                      0
 $                                    0
 $                    0
February 28, 2011
 $                            850
 $                                      0
 $                                    0
 $                850
         
"Non-Audit Fees billed to Fund" for both fiscal year ends represent "Tax Fees" and "All Other Fees" billed to Fund in their respective
 
amounts from the previous table.
       
 
Audit Committee Pre-Approval Policies and Procedures. Generally, the Audit Committee must approve (i) all non-audit services to be performed for the Fund by the Fund's independent accountants and (ii) all audit and non-audit services to be performed by the Fund's independent accountants for the Affiliated Fund Service Providers with respect to operations and financial reporting of the Fund. Regarding tax and research projects conducted by the independent accountants for the Fund and Affiliated Fund Service Providers (with respect to operations and financial reports of the Fund) such engagements will be (i) pre-approved by the Audit Committee if they are expected to be for amounts greater than $10,000; (ii) reported to the Audit Committee chairman for his verbal approval prior to engagement if they are expected to be for amounts under $10,000 but greater than $5,000; and (iii) reported to the Audit Committee at the next Audit Committee meeting if they are expected to be for an amount under $5,000.

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.

The registrant's Board has a separately designated Audit Committee established in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934, as amended (15 U.S.C. 78c(a)(58)(A)). The members of the audit committee are Robert P. Bremner, Terence J. Toth, William J. Schneider, Carole E. Stone and David J. Kundert.

ITEM 6. SCHEDULE OF INVESTMENTS.

a) See Portfolio of Investments in Item 1.

b) Not applicable.

ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Nuveen Fund Advisors, Inc. (“Adviser”) is the registrant’s investment adviser. The Adviser is responsible for the on-going monitoring of the Fund’s investment portfolio, managing the Fund’s business affairs and providing certain clerical, bookkeeping and administrative services. The Adviser has engaged Nuveen Asset Management, LLC (“Sub-Adviser”) as Sub-Adviser to provide discretionary investment advisory services. As part of these services, the Adviser has delegated to the Sub-Adviser the full responsibility for proxy voting on securities held in the registrant’s portfolio and related duties in accordance with the Sub-Adviser's policy and procedures. The Adviser periodically monitors the Sub-Adviser's voting to ensure that it is carrying out its duties. The Sub-Adviser’s proxy voting policies and procedures are attached to this filing as an exhibit and incorporated herein by reference.
 
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
 
Nuveen Fund Advisors, Inc. is the registrant’s investment adviser (also referred to as the “Adviser”).  The Adviser is responsible for the selection and on-going monitoring of the Fund’s investment portfolio, managing the Fund’s business affairs and providing certain clerical, bookkeeping and administrative services.  The Adviser has engaged Nuveen Asset Management, LLC (“Nuveen Asset Management” or “Sub-Adviser”) as Sub-Adviser to provide discretionary investment advisory services. The following section provides information on the portfolio manager at the Sub-Adviser:

The Portfolio Manager

The following individual has primary responsibility for the day-to-day implementation of the registrant’s investment strategies:
 
Name
Fund
Scott R. Romans
Nuveen California Dividend Advantage Municipal Fund

Other Accounts Managed. In addition to managing the registrant, the portfolio manager is also primarily responsible for the day-to-day portfolio management of the following accounts:
 
Portfolio Manager
Type of Account
Managed
Number of
Accounts
Assets*
 Scott R. Romans
 Registered Investment Company
31
$6.37 billion
 
 Other Pooled Investment Vehicles
0
$0
 
 Other Accounts
2
$1.026 million
*
Assets are as of February 29, 2012.  None of the assets in these accounts are subject to an advisory fee based on performance.

POTENTIAL MATERIAL CONFLICTS OF INTEREST

Actual or apparent conflicts of interest may arise when a portfolio manager has day-to-day management responsibilities with respect to more than one account. More specifically, portfolio managers who manage multiple accounts are presented a number of potential conflicts, including, among others, those discussed below.

The management of multiple accounts may result in a portfolio manager devoting unequal time and attention to the management of each account. Nuveen Asset Management seeks to manage such competing interests for the time and attention of portfolio managers by having portfolio managers focus on a particular investment discipline. Most accounts managed by a portfolio manager in a particular investment strategy are managed using the same investment models.

If a portfolio manager identifies a limited investment opportunity which may be suitable for more than one account, an account may not be able to take full advantage of that opportunity due to an allocation of filled purchase or sale orders across all eligible accounts. To deal with these situations, Nuveen Asset Management has adopted procedures for allocating limited opportunities across multiple accounts.

With respect to many of its clients’ accounts, Nuveen Asset Management determines which broker to use to execute transaction orders, consistent with its duty to seek best execution of the transaction. However, with respect to certain other accounts, Nuveen Asset Management may be limited by the client with respect to the selection of brokers or may be instructed to direct trades through a particular broker. In these cases, Nuveen Asset Management may place separate, non-simultaneous, transactions for a Fund and other accounts which may temporarily affect the market price of the security or the execution of the transaction, or both, to the detriment of the Fund or the other accounts.

Some clients are subject to different regulations. As a consequence of this difference in regulatory requirements, some clients may not be permitted to engage in all the investment techniques or transactions or to engage in these transactions to the same extent as the other accounts managed by the portfolio manager. Finally, the appearance of a conflict of interest may arise where Nuveen Asset Management has an incentive, such as a performance-based management fee, which relates to the management of some accounts, with respect to which a portfolio manager has day-to-day management responsibilities.

Nuveen Asset Management has adopted certain compliance procedures which are designed to address these types of conflicts common among investment managers. However, there is no guarantee that such procedures will detect each and every situation in which a conflict arises.

Item 8(a)(3).
FUND MANAGER COMPENSATION

Portfolio manager compensation consists primarily of base pay, an annual cash bonus and long term incentive payments.

Base pay. Base pay is determined based upon an analysis of the portfolio manager’s general performance, experience, and market levels of base pay for such position.

Annual cash bonus.  The Fund’s portfolio managers are eligible for an annual cash bonus based on investment performance, qualitative evaluation and financial performance of Nuveen Asset Management.

A portion of each portfolio manager’s annual cash bonus is based on the Fund’s investment performance, generally measured over the past one- and three or five-year periods unless the portfolio manager’s tenure is shorter. Investment performance for the Fund generally is determined by evaluating the Fund’s performance relative to its benchmark(s) and/or Lipper industry peer group.

A portion of the cash bonus is based on a qualitative evaluation made by each portfolio manager’s supervisor taking into consideration a number of factors, including the portfolio manager’s team collaboration, expense management, support of personnel responsible for asset growth, and his or her compliance with Nuveen Asset Management’s policies and procedures.
 
The final factor influencing a portfolio manager’s cash bonus is the financial performance of Nuveen Asset Management based on its operating earnings.

Long-term incentive compensation. Certain key employees of Nuveen Investments and its affiliates, including certain portfolio managers, have received equity interests in the parent company of Nuveen Investments. In addition, certain key employees of Nuveen Asset Management, including certain portfolio managers, have received profits interests in Nuveen Asset Management which entitle their holders to participate in the firm’s growth over time.

There are generally no differences between the methods used to determine compensation with respect to the Fund and the Other Accounts shown in the table above.

Beneficial Ownership of Securities. As of February 29, 2012 the portfolio manager beneficially owned the following dollar range of equity securities issued by the Registrant and other Nuveen Funds managed by Nuveen Asset Management’s municipal investment team.
 
 
 
 
 
 
 
 
 
 
 
 
 
Name of Portfolio Manager
 
 
 
 
 
 
 
 
 
 
 
 
 
Fund
 
 
 
 
 
 
 
 
Dollar range
of equity
securities
beneficially
owned in
Fund
 
Dollar range
of equity
securities
beneficially
owned in the
remainder of
Nuveen funds
managed by
Nuveen Asset
Management’s
municipal
investment
team
 Scott R. Romans
Nuveen California Dividend Advantage Municipal Fund
$0
$0
 
PORTFOLIO MANAGER BIO:

Scott R. Romans, PhD, Senior Vice President of Nuveen Asset Management, joined Nuveen Investments in 2000 as a senior analyst in the education sector. In 2003, he was assigned management responsibility for several closed- and open-ended municipal bond funds most of which are state funds covering California and other western states.   Currently, he manages investments for 32 Nuveen-sponsored investment companies.  He holds an undergraduate degree from the University of Pennsylvania and an MA and PhD from the University of Chicago.

ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.

Not applicable.

ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant's Board implemented after the registrant last provided disclosure in response to this item.

ITEM 11. CONTROLS AND PROCEDURES.

(a)
The registrant's principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of the controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) (17 CFR 240.13a-15(b) or 240.15d-15(b)).

(b)
There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.

ITEM 12. EXHIBITS.

File the exhibits listed below as part of this Form. Letter or number the exhibits in the sequence indicated.

(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 because the code is posted on registrant's website at www.nuveen.com/CEF/Shareholder and there were no amendments during the period covered by this report. (To view the code, click on Fund Governance and then Code of Conduct.)

(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

By (Signature and Title) /s/ Kevin J. McCarthy
Kevin J. McCarthy
Vice President and Secretary

Date: May 7, 2012

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 7, 2012
 
By (Signature and Title) /s/ Stephen D. Foy
Stephen D. Foy
Vice President and Controller
(principal financial officer)

Date: May 7, 2012