nvx.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 811-10197

Nuveen California Dividend Advantage Municipal Fund 2
(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 28

Date of reporting period: August 31, 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
9
   
Common Share Dividend and Price Information
11
   
Performance Overviews
13
   
Shareholder Meeting Report
18
   
Portfolios of Investments
19
   
Statement of Assets and Liabilities
56
   
Statement of Operations
57
   
Statement of Changes in Net Assets
58
   
Statement of Cash Flows
60
   
Financial Highlights
62
   
Notes to Financial Statements
71
   
Annual Investment Management Agreement Approval Process
86
   
Reinvest Automatically, Easily and Conveniently
96
   
Glossary of Terms Used in this Report
98
   
Additional Fund Information
103

 
 

 
 
Chairman’s
Letter to Shareholders
 
 
Dear Shareholders,
 
Investors have many reasons to remain cautious. The challenges in the Euro area are casting a shadow over global economies and financial markets. The political support for addressing fiscal issues is eroding as the economic and social impacts become more visible. At the same time, member nations appear unwilling to provide adequate financial support or to surrender sufficient sovereignty to strengthen the banks or unify the Euro area financial system. The gains made in reducing deficits, and the hard-won progress on winning popular acceptance of the need for economic austerity, are at risk. To their credit, European political leaders press on to find compromise solutions, but there is increasing concern that time will begin to run out.
 
In the U.S., strong corporate earnings have enabled the equity markets to withstand much of the downward pressures coming from weakening job creation, slower economic growth and political uncertainty. The Fed remains committed to low interest rates and announced on September 13, 2012 (after the close of this reporting period) another program of quantitative easing (QE3) to continue until mid-2015. Pre-election maneuvering has added to the already highly partisan atmosphere in 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.
 
During the last year, U.S. based investors have experienced a sharp decline and a strong recovery in the equity markets. The experienced investment teams at Nuveen 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. Experienced professionals pursue investments that will weather short-term volatility and at the same time, seek opportunities that are created by markets that overreact to negative developments. Monitoring this process is an important consideration for the Fund Board as it oversees your Nuveen Fund 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
October 22, 2012

4
 
Nuveen Investments

 
 

 
 
Portfolio Manager’s Comments
 
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 California AMT-Free Municipal Income Fund (NKX)

Portfolio manager Scott Romans examines key investment strategies and the six-month performance of these Nuveen California Municipal Funds. Scott has managed NCU, NAC, NVX, NZH and NKX since 2003.
 
REORGANIZATIONS
 
Effective before the opening of business on May 7, 2012, the following Acquired Funds were merged into the Acquiring Fund.

 
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)
   
 
Upon the closing of the reorganizations, the Acquired Funds transfered 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 were then liquidated, dissolved and terminated in accordance with their Declaration of Trust.
 
What key strategies were used to manage the California Funds during the six-month reporting period ended August 31, 2012?
 
During this reporting period, municipal bond prices generally rallied, as strong demand and tight supply combined to create favorable market conditions for municipal bonds. Although the availability of tax-exempt supply improved over that of the same six-month period a year earlier, the pattern of new issuance remained light compared with long-term historical trends. This supply/demand dynamic served as a key driver of performance. Concurrent with rising prices, yields continued to decline across most maturities, especially at the longer end of the municipal yield curve, and the yield curve flattened. During this period, we saw an increasing number of borrowers come to market seeking to take advantage of the low rate environment, with
 
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 these national rating agencies.

Nuveen Investments
 
5

 
 

 
 
approximately 60% of new municipal paper issued by borrowers that were calling existing debt and refinancing at lower rates.
 
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 the Funds fully invested. During this period, the Funds found value in several areas of the market, including health care. The Funds also took advantage of opportunities to move out of local general obligation (GO) bonds and into state GOs and, more broadly speaking, away from GO bonds in general and into revenue bonds. These moves were intended to reduce the Funds’ exposure to some of the fiscal problems faced by local governments in California, including local real estate valuations and Proposition 13’s constraints on property taxes, as well as pension issues. One example of a revenue credit that we purchased during this period were water bonds issued by the San Francisco Public Utilities Commission for water service to the city and Bay Area.
 
We also continued to add exposure to redevelopment agency (RDA) bonds in the secondary market. Because of recent changes to the RDA program, we remained very selective in our purchases in this area, evaluating issuers on a case by case basis. (In 2011, as part of cost saving measures to close gaps in the California state budget, all 400 RDAs in the state were ordered to dissolve by February 1, 2012, and successor agencies and oversight boards were created to manage obligations that were in place prior to the dissolution and take title to the RDAs’ housing and other assets.) In addition to finding opportunities in specific sectors, we also focused on taking advantage of short-term market opportunities created by supply/demand dynamics in the municipal market during this period. While demand for tax exempt paper remained consistently strong throughout the period, supply fluctuated widely. We found that periods of substantial supply provided good short term buying opportunities not only because of the increased number of issues available but also because some investors became more hesitant in their buying as supply grew, causing spreads to widen temporarily.
 
In general during this period, we focused on bonds with longer maturities. This enabled us to take advantage of attractive yields at the longer end of the municipal yield curve and also provided some protection for the Funds’ duration and yield curve positioning. We also purchased lower rated bonds when we found attractive opportunities, as we believed these bonds continued to offer relative value.
 
Cash for new purchases during this period was generated primarily by the proceeds from a meaningful number of bond calls resulting from the increase in refinancings. During this period, we worked to redeploy these proceeds as well as those from maturing bonds to keep the Funds as fully invested as possible. In addition, as discussed above, the Funds sold some local GOs and appropriation bonds and reinvested the proceeds in state GOs. Overall, selling was minimal because the bonds in our portfolios generally embedded higher yields than those on bonds available in the current marketplace.
 
6
 
Nuveen Investments

 
 

 
 
As of August 31, 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.
 
How did the Funds perform?
 
Individual results for these Nuveen California Funds, as well as relevant index and peer group information, are presented in the accompanying table.
 
Average Annual Total Returns on Common Share Net Asset Value*
For periods ended 8/31/12
 
Fund
6-Month
1-Year
5-Year
10-Year
NCU
5.99%
18.95%
8.25%
6.75%
NAC
7.51%
19.58%
7.62%
6.74%
NVX
6.48%
18.26%
8.14%
6.95%
NZH
6.46%
18.24%
6.76%
6.23%
NKX
7.14%
16.61%
7.08%
N/A
         
S&P California Municipal Bond Index**
3.55%
10.79%
6.12%
5.35%
S&P Municipal Bond Index**
3.24%
9.35%
6.00%
5.28%
Lipper California Municipal Debt Funds
       
Classification Average**
6.38%
19.48%
6.76%
6.14%
 
For the six months ended August 31, 2012, the cumulative returns on common share net asset value (NAV) for all five of these Funds exceeded the returns on the S&P California Municipal Bond Index as well as the S&P Municipal Bond Index. NAC, NVX, NZH and NKX also outperformed the average return for the Lipper California Municipal Debt Funds Classification Average, while NCU underperformed this Lipper average.
 
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 regulatory leverage also was an important positive factor affecting the Funds’ performance. Leverage is discussed in more detail later in this report.
 
In an environment of declining rates and flattening yield curve, municipal bonds with longer maturities generally outperformed those with shorter maturities during this period. 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. Among these Funds, NAC was the most advantageously positioned in terms of duration and yield curve, with overweights in the outperforming longer part of the yield curve and underexposure to the shorter end of the curve that produced weaker returns. Overall, duration and yield curve positioning was a positive contributor to the performance of these Funds, although the net impact varied depending upon each
   
 
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 for your Fund in this report.
   
*
Six-month returns are cumulative; all other returns are annualized.
   
**
Refer to Glossary of Terms Used in this Report for definitions. Indexes and Lipper averages are not available for direct investment.
 
Nuveen Investments
 
7

 
 

 
 
Fund’s individual weightings along the yield curve. NCU, NAC, NZH and NKX also benefited from their overweighting in zero coupon bonds, which generally outperformed the market during this period due to their longer durations. NVX was underweight in these bonds.
 
Credit exposure was another important factor in the Funds’ performance during these six months, as lower quality bonds generally outperformed higher quality credits. This outperformance was due in part to the greater demand for lower rated bonds as investors looked for investment vehicles offering higher yields. As investors became more comfortable taking on additional investment risk, credit spreads or the difference in yield spreads between U.S. Treasury securities and comparable investments such as municipal bonds, narrowed through a variety of rating categories. As a result of this spread compression, the Funds generally benefited from their holdings of lower rated credits. This was especially true in NVX and NZH, which had the highest allocations of bonds rated BBB. On the other hand, NCU’s higher quality profile, including the largest allocation of AAA bonds among these Funds, detracted from its performance for the period.
 
During this period, revenue bonds as a whole outperformed the general municipal market. Holdings that generally made positive contributions to the Funds’ returns included health care (together with hospitals), education, housing, transportation and redevelopment agency (RDA) credits. All of these Funds benefited from good weightings in the health care sector. Tobacco credits backed by the 1998 master tobacco settlement agreement also performed very well, as these bonds benefited from several market developments, including increased demand for higher yielding investments by investors who had become less risk-averse. In addition, based on recent data showing that cigarette sales had fallen less steeply than anticipated, the 46 states participating in the agreement, including California, stand to receive increased payments from the tobacco companies. As of August 31, 2012, these Funds held tobacco credits, which benefited their performance as tobacco bonds rallied.
 
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. NZH had the largest allocation of these bonds as of August 31, 2012, while NAC held the fewest pre-refunded bonds. General obligation (GO) bonds and utilities credits also lagged the performance of the general municipal market for this period.
 
In addition, NKX had some exposure to California municipalities that experienced financial difficulties over the past six months, including Stockton and San Bernardino. Shareholders should note that all of these holdings are insured, and the insurer, National Public Finance Guaranty, has stated its intention to make payments on these bonds, if required. During this period, these holdings had no negative impact on NKX’s performance.
 
8
 
Nuveen Investments

 
 

 
 
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 August 31, 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
 
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
NKK
$  35,500,000
 
(Refer to Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies for further details on MTP and VRDP Shares.)

Nuveen Investments
 
9

 
 

 
 
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.
 
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.
 
10
 
Nuveen Investments

 
 

 
 
Common Share Dividend
and Price Information
 
DIVIDEND INFORMATION
 
During the six-month reporting period ended August 31, 2012, the monthly dividend of NKX was increased effective July 2012. The dividends of NCU, NAC and NVX remained stable throughout the period, while the dividend of NZH was reduced once during the period.
 
All of the Funds in this report seek to pay stable dividends at rates that reflect each Fund’s past results and projected future performance. During certain periods, each Fund may pay dividends at a rate that may be more or less than the amount of net investment income actually earned by the Fund during the period. If a Fund has cumulatively earned more than it has paid in dividends, it holds the excess in reserve as undistributed net investment income (UNII) as part of the Fund’s NAV. Conversely, if a Fund has cumulatively paid dividends in excess of its earnings, the excess constitutes negative UNII that is likewise reflected in the Fund’s NAV. Each Fund will, over time, pay all of its net investment income as dividends to shareholders. As of August 31, 2012, all of the Funds in this report had positive UNII balances, based upon our best estimate, for tax purposes and positive UNII balances for financial reporting.
 
Nuveen Investments
 
11

 
 

 
 
COMMON SHARE REPURCHASES AND PRICE INFORMATION
 
As of August 31, 2012, and since the inception of the Funds’ repurchase program, the Funds have cumulatively repurchased and retired common shares as shown in the accompanying table. Since the inception of the Funds’ repurchase programs, NAC and NKX have not repurchased any of their outstanding common shares.
 

 
Common Shares
% of Outstanding
Fund
Repurchased and Retired
Common Shares
NCU
44,500
0.8%
NAC
NVX
50,700
0.3%
NZH
12,900
0.1%
NKX
 
During the six-month reporting period, the Funds did not repurchase any of their outstanding common shares.
 
As of August 31, 2012, and during the current reporting period, the Funds’ common share prices were trading at (+) premiums and/or (-) discounts to their common share NAVs as shown in the accompanying table.
 
 
8/31/12
Six-Month Average
Fund
(+)Premium/(-)Discount
(-)Discount
NCU
(-)4.18%
(-)2.22%
NAC
(-)1.74%
(-)1.36%
NVX
(-)1.25%
(-)1.66%
NZH
(-)2.37%
(-)1.30%
NKX
(-)0.85%
(-)1.11%
 
12
 
Nuveen Investments

 
 

 
 
NCU
 
Nuveen California
Performance
 
Premium Income
OVERVIEW
 
Municipal Fund
   
as of August 31, 2012
 
 
Fund Snapshot
             
Common Share Price
       
$
15.12
 
Common Share Net Asset Value (NAV)
       
$
15.78
 
Premium/(Discount) to NAV
         
-4.18
%
Market Yield
         
5.75
%
Taxable-Equivalent Yield1
         
8.81
%
Net Assets Applicable to Common Shares ($000)
       
$
90,439
 
               
Leverage
             
Regulatory Leverage
         
28.05
%
Effective Leverage
         
35.58
%
               
Average Annual Total Returns
             
(Inception 6/18/93)
             
   
On Share Price
 
On NAV
6-Month (Cumulative)
   
2.70
%
 
5.99
%
1-Year
   
24.01
%
 
18.95
%
5-Year
   
9.54
%
 
8.25
%
10-Year
   
7.03
%
 
6.75
%
               
Portfolio Composition3
             
(as a % of total investments)
             
Tax Obligation/Limited
         
29.2
%
Tax Obligation/General
         
22.7
%
Health Care
         
20.6
%
U.S. Guaranteed
         
7.7
%
Water and Sewer
         
5.0
%
Other
         
14.8
%
 
 
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 these national rating agencies.
3
Holdings are subject to change.
 
Nuveen Investments
 
13

 
 

 

NAC
 
Nuveen California
Performance
 
Dividend Advantage
OVERVIEW
 
Municipal Fund
   
as of August 31, 2012
 
 
Fund Snapshot
             
Common Share Price
       
$
15.24
 
Common Share Net Asset Value (NAV)
       
$
15.51
 
Premium/(Discount) to NAV
         
-1.74
%
Market Yield
         
6.06
%
Taxable-Equivalent Yield1
         
9.28
%
Net Assets Applicable to Common Shares ($000)
       
$
364,252
 
               
Leverage
             
Regulatory Leverage
         
27.22
%
Effective Leverage
         
32.47
%
               
Average Annual Total Returns
             
(Inception 5/26/99)
             
   
On Share Price
 
On NAV
6-Month (Cumulative)
   
3.80
%
 
7.51
%
1-Year
   
21.11
%
 
19.58
%
5-Year
   
8.66
%
 
7.62
%
10-Year
   
7.38
%
 
6.74
%
               
Portfolio Composition3
             
(as a % of total investments)
             
Tax Obligation/Limited
         
26.0
%
Health Care
         
21.8
%
Tax Obligation/General
         
21.4
%
Water and Sewer
         
9.2
%
Consumer Staples
         
5.2
%
Education and Civic Organizations
         
4.8
%
Other
         
11.6
%
 
 
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
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 these national rating agencies.
3
Holdings are subject to change.
4
The Fund paid shareholders a net ordinary income distribution in December 2011 of $0.0045 per share.
 
14
 
Nuveen Investments

 
 

 
 
NVX
 
Nuveen California
Performance
 
Dividend Advantage
OVERVIEW
 
Municipal Fund 2
   
as of August 31, 2012
 

               
Fund Snapshot
             
Common Share Price
       
$
15.80
 
Common Share Net Asset Value (NAV)
       
$
16.00
 
Premium/(Discount) to NAV
         
-1.25
%
Market Yield
         
6.08
%
Taxable-Equivalent Yield1
         
9.31
%
Net Assets Applicable to Common Shares ($000)
       
$
236,015
 
               
Leverage
             
Regulatory Leverage
         
29.31
%
Effective Leverage
         
36.56
%
               
Average Annual Total Returns
             
(Inception 3/27/01)
             
   
On Share Price
 
On NAV
6-Month (Cumulative)
   
4.59
%
 
6.48
%
1-Year
   
21.23
%
 
18.26
%
5-Year
   
9.81
%
 
8.14
%
10-Year
   
7.59
%
 
6.95
%
               
Portfolio Composition3
             
(as a % of total investments)
             
Tax Obligation/General
         
19.8
%
Health Care
         
18.5
%
Tax Obligation/Limited
         
13.0
%
Water and Sewer
         
12.4
%
U.S. Guaranteed
         
7.8
%
Transportation
         
6.0
%
Utilities
         
5.8
%
Consumer Staples
         
5.5
%
Education and Civic Organizations
         
5.2
%
Other
         
6.0
%
 
 
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
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 these national rating agencies.
3
Holdings are subject to change.
 
Nuveen Investments
 
15

 
 

 
 
NZH
 
Nuveen California
Performance
 
Dividend Advantage
OVERVIEW
 
Municipal Fund 3
   
as of August 31, 2012
 

Fund Snapshot
             
Common Share Price
       
$
14.02
 
Common Share Net Asset Value (NAV)
       
$
14.36
 
Premium/(Discount) to NAV
         
-2.37
%
Market Yield
         
6.03
%
Taxable-Equivalent Yield1
         
9.23
%
Net Assets Applicable to Common Shares ($000)
       
$
346,658
 
               
Leverage
             
Regulatory Leverage
         
31.52
%
Effective Leverage
         
38.18
%
               
Average Annual Total Returns
             
(Inception 9/25/01)
             
   
On Share Price
 
On NAV
6-Month (Cumulative)
   
0.79
%
 
6.46
%
1-Year
   
19.77
%
 
18.24
%
5-Year
   
7.65
%
 
6.76
%
10-Year
   
6.55
%
 
6.23
%
               
Portfolio Composition3
             
(as a % of total investments)
             
Tax Obligation/Limited
         
26.0
%
Health Care
         
21.8
%
Tax Obligation/General
         
13.0
%
U.S. Guaranteed
         
8.3
%
Water and Sewer
         
7.0
%
Consumer Staples
         
6.3
%
Education and Civic Organizations
         
4.4
%
Other
         
13.2
%
 
 
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 these national rating agencies.
3
Holdings are subject to change.
 
16
 
Nuveen Investments

 
 

 
 
NKX
 
Nuveen California
Performance
 
AMT-Free Municipal
OVERVIEW
 
Income Fund
   
as of August 31, 2012
     
 

               
Fund Snapshot
             
Common Share Price
       
$
15.20
 
Common Share Net Asset Value (NAV)
       
$
15.33
 
Premium/(Discount) to NAV
         
-0.85
%
Market Yield
         
6.16
%
Taxable-Equivalent Yield1
         
9.43
%
Net Assets Applicable to Common Shares ($000)
       
$
640,793
 
               
Leverage
             
Regulatory Leverage
         
28.59
%
Effective Leverage
         
34.66
%
               
Average Annual Total Returns
             
(Inception 11/21/02)
             
   
On Share Price
 
On NAV
6-Month (Cumulative)
   
3.94
%
 
7.14
%
1-Year
   
25.27
%
 
16.61
%
5-Year
   
7.24
%
 
7.08
%
Since Inception
   
6.08
%
 
6.44
%
               
Portfolio Composition3
             
(as a % of total investments)
             
Tax Obligation/Limited
         
34.8
%
Tax Obligation/General
         
21.5
%
Water and Sewer
         
15.6
%
Health Care
         
8.5
%
U.S. Guaranteed
         
7.0
%
Other
         
12.6
%
 
 
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
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 these national rating agencies.
3
Holdings are subject to change.
 
Nuveen Investments
 
17

 
 

 
 
   
Shareholder Meeting Report
NVX
   
   
The annual meeting of shareholders for NVX 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 was additionally adjourned to January 31, 2012, March 5, 2012 and March 14, 2012.

 
NVX
 
Common and
   
 
Preferred
 
Preferred
 
shares voting
 
shares voting
 
together
 
together
 
as a class
 
as a class
To approve the elimination of the fundamental policies relating to the Fund’s ability to make loans.
     
For
11,476,763
 
4,237,953
Against
734,549
 
256,156
Abstain
375,823
 
82,330
Broker Non-Votes
3,728,095
 
2,286,424
Total
16,315,230
 
6,862,863
       
To approve the new fundamental policy relating to the Fund’s ability to make loans.
     
For
11,427,435
 
4,215,453
Against
762,029
 
278,656
Abstain
397,671
 
82,330
Broker Non-Votes
3,728,095
 
2,286,424
Total
16,315,230
 
6,862,863

18
 
Nuveen Investments

 
 

 
   
Nuveen California Premium Income Municipal Fund
NCU
 
Portfolio of Investments
   
August 31, 2012 (Unaudited)
 
 
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
12/12 at 100.00
 
BBB+
$
1,499,055
 
 
190
 
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+
 
184,908
 
 
2,835
 
California Statewide Financing Authority, Tobacco Settlement Asset-Backed Bonds, Pooled Tobacco Securitization Program, Series 2002A, 5.625%, 5/01/29
11/12 at 100.00
 
BBB
 
2,786,635
 
 
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
 
BB–
 
413,041
 
 
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–
 
687,095
 
 
5,875
 
Total Consumer Staples
       
5,570,734
 
     
Education and Civic Organizations – 6.1% (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
 
73,094
 
     
California Educational Facilities Authority, Revenue Bonds, University of the Pacific, Series 2006:
           
 
45
 
5.000%, 11/01/21
11/15 at 100.00
 
A2
 
48,612
 
 
60
 
5.000%, 11/01/25
11/15 at 100.00
 
A2
 
63,937
 
 
1,112
 
California State Public Works Board, Lease Revenue Bonds, University of California Regents, Tender Option Bond Trust 1065, 9.131%, 3/01/33 (IF)
3/18 at 100.00
 
Aa2
 
1,331,842
 
 
2,000
 
California State University, Systemwide Revenue Bonds, Series 2005C, 5.000%, 11/01/27 – NPFG Insured
11/15 at 100.00
 
Aa2
 
2,228,480
 
 
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
 
BBB
 
329,580
 
 
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
 
201,526
 
 
1,190
 
University of California, Revenue Bonds, Multi-Purpose Projects, Series 2003A, 5.125%, 5/15/17 – AMBAC Insured
5/13 at 100.00
 
Aa1
 
1,230,662
 
 
4,962
 
Total Education and Civic Organizations
       
5,507,733
 
     
Health Care – 29.3% (20.6% of Total Investments)
           
 
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
 
A+
 
362,453
 
 
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–
 
3,735,936
 
 
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
 
704,653
 
 
1,000
 
California Statewide Communities Development Authority, Revenue Bonds, Adventist Health System West, Series 2005A, 5.000%, 3/01/35
3/15 at 100.00
 
A
 
1,034,760
 
 
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
 
839,108
 
 
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
 
1,818,735
 
 
730
 
California Statewide Community Development Authority, Revenue Bonds, Kaiser Permanente System, Series 2001C, 5.250%, 8/01/31
8/16 at 100.00
 
A+
 
817,359
 
 
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
 
3,667,470
 
 
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
 
2,325,939
 
 
1,690
 
California Statewide Community Development Authority, Revenue Bonds, Sutter Health, Series 2005A, 5.000%, 11/15/43
11/15 at 100.00
 
AA–
 
1,793,884
 
 
377
 
California Statewide Communities Development Authority, Revenue Bonds, Saint Joseph Health System, Trust 2554, 18.234%, 7/01/47 – AGM Insured (IF)
7/18 at 100.00
 
AA–
 
512,567
 
 
Nuveen Investments
 
19
 
 
 

 
 
   
Nuveen California Premium Income Municipal Fund (continued)
NCU
 
Portfolio of Investments August 31, 2012 (Unaudited)
 
 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
 
Ratings (3)
 
Value
 
     
Health Care (continued)
           
$
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
$
889,732
 
 
2,600
 
Marysville, California, Revenue Bonds, The Fremont-Rideout Health Group, Series 2011, 5.250%, 1/01/42
1/21 at 100.00
 
A
 
2,823,444
 
 
1,450
 
Palomar Pomerado Health Care District, California, Certificates of Participation, Series 2010, 6.000%, 11/01/41
11/20 at 100.00
 
Baa3
 
1,555,676
 
 
850
 
San Buenaventura, California, Revenue Bonds, Community Memorial Health System, Series 2011, 7.500%, 12/01/41
12/21 at 100.00
 
BB
 
1,032,495
 
 
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+
 
1,536,648
 
 
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
 
1,075,930
 
 
24,072
 
Total Health Care
       
26,526,789
 
     
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
 
541,985
 
 
155
 
California Municipal Finance Authority, Mobile Home Park Revenue Bonds, Caritas Projects Series 2012A, 5.500%, 8/15/47
8/22 at 100.00
 
BBB
 
163,128
 
 
350
 
California Municipal Finance Authority, Mobile Home Park Revenue Bonds, Caritas Projects Series 2012B, 7.250%, 8/15/47
8/22 at 100.00
 
A1
 
365,229
 
 
1,000
 
Total Housing/Multifamily
       
1,070,342
 
     
Housing/Single Family – 2.4% (1.7% of Total Investments)
           
 
2,020
 
California Housing Finance Agency, California, Home Mortgage Revenue Bonds, Series 2008L, 5.500%, 8/01/38
2/18 at 100.00
 
BBB
 
2,054,865
 
 
80
 
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
 
83,504
 
 
2,100
 
Total Housing/Single Family
       
2,138,369
 
     
Tax Obligation/General – 32.5% (22.7% of Total Investments)
           
     
California State, General Obligation Bonds, Various Purpose Series 2009:
           
 
2,350
 
6.000%, 11/01/39
11/19 at 100.00
 
A1
 
2,803,997
 
 
1,300
 
5.500%, 11/01/39
11/19 at 100.00
 
A1
 
1,486,043
 
 
4,000
 
California State, General Obligation Bonds, Various Purpose Series 2012, 5.000%, 4/01/42
4/22 at 100.00
 
A1
 
4,407,760
 
 
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
 
4,525,747
 
 
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
 
6,496,560
 
 
3,000
 
Los Angeles Unified School District, California, General Obligation Bonds, Series 2005A-2, 5.000%, 7/01/24 – NPFG Insured
7/15 at 100.00
 
Aa2
 
3,319,680
 
 
15
 
Riverside Community College District, California, General Obligation Bonds, Series 2004A, 5.250%, 8/01/22 – NPFG Insured
8/14 at 100.00
 
AA
 
16,314
 
 
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+
 
148,779
 
 
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
 
1,510,866
 
 
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
 
3,515,582
 
 
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
 
1,129,010
 
 
31,975
 
Total Tax Obligation/General
       
29,360,338
 
     
Tax Obligation/Limited – 41.7% (29.2% 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
 
932,240
 
 
20
 
Nuveen Investments
 
 
 

 
 
 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
 
Ratings (3)
 
Value
 
     
Tax Obligation/Limited (continued)
           
     
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+
$
1,784,852
 
 
1,865
 
5.000%, 12/01/24 – AMBAC Insured
12/13 at 100.00
 
AA+
 
1,963,864
 
 
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
11/12 at 100.00
 
A2
 
5,943,502
 
 
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
 
1,179,530
 
 
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
 
2,428,680
 
 
535
 
California, Economic Recovery Revenue Bonds, Series 2004A, 5.000%, 7/01/15
7/14 at 100.00
 
Aa3
 
578,110
 
 
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
 
169,574
 
 
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–
 
505,615
 
 
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
3/13 at 101.00
 
A–
 
261,700
 
 
350
 
Fontana, California, Redevelopment Agency, Jurupa Hills Redevelopment Project, Tax Allocation Refunding Bonds, 1997 Series A, 5.500%, 10/01/27
10/12 at 100.00
 
A–
 
350,371
 
 
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+
 
326,512
 
     
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
 
77,523
 
 
175
 
5.125%, 9/01/36
9/16 at 100.00
 
N/R
 
178,194
 
 
3,500
 
Livermore Redevelopment Agency, California, Tax Allocation Revenue Bonds, Livermore Redevelopment Project Area, Series 2001A, 5.000%, 8/01/26 – NPFG Insured
2/13 at 100.00
 
BBB+
 
3,499,860
 
 
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
 
317,493
 
 
2,000
 
Los Angeles Municipal Improvement Corporation, California, Lease Revenue Bonds, Police Headquarters, Series 2006A, 4.750%, 1/01/31 – FGIC Insured
1/17 at 100.00
 
A+
 
2,095,920
 
 
475
 
Lynwood Redevelopment Agency, California, Project A Revenue Bonds, Subordinate Lien Series 2011A, 7.250%, 9/01/38
9/21 at 100.00
 
A–
 
566,913
 
 
3,230
 
Murrieta Redevelopment Agency, California, Tax Allocation Bonds, Series 2005, 5.000%, 8/01/35 – NPFG Insured
8/15 at 100.00
 
A–
 
3,266,079
 
 
170
 
National City Community Development Commission, California, Tax Allocation Bonds, National City Redevelopment Project, Series 2011, 6.500%, 8/01/24
8/21 at 100.00
 
A–
 
210,001
 
 
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–
 
74,997
 
     
Perris Union High School District Financing Authority, Riverside County, California, Revenue Bonds, Series 2011:
           
 
60
 
6.000%, 9/01/33
9/12 at 103.00
 
N/R
 
62,094
 
 
135
 
6.125%, 9/01/41
9/12 at 103.00
 
N/R
 
139,644
 
 
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
 
583,081
 
 
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+
 
230,882
 
 
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–
 
156,610
 
 
40
 
Riverside County Redevelopment Agency, California, Tax Allocation Bonds, Jurupa Valley Project Area, Series 2011B, 6.500%, 10/01/25
10/21 at 100.00
 
A–
 
44,676
 
 
190
 
Roseville, California, Certificates of Participation, Public Facilities, Series 2003A, 5.000%, 8/01/25 – AMBAC Insured
8/13 at 100.00
 
AA–
 
193,099
 
 
Nuveen Investments
 
21
 
 
 

 
 
   
Nuveen California Premium Income Municipal Fund (continued)
NCU
 
Portfolio of Investments August 31, 2012 (Unaudited)
 
 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
 
Ratings (3)
 
Value
 
     
Tax Obligation/Limited (continued)
           
$
1,500
 
Sacramento City Financing Authority, California, Lease Revenue Refunding Bonds, Series 1993A, 5.400%, 11/01/20 – NPFG Insured
No Opt. Call
 
A1
$
1,721,850
 
 
3,000
 
Sacramento City Financing Authority, California, Lease Revenue Refunding Bonds, Series 1993B, 5.400%, 11/01/20
No Opt. Call
 
A1
 
3,443,700
 
 
1,000
 
San Diego County Regional Transportation Commission, California, Sales Tax Revenue Bonds, Series 2012A, 5.000%, 4/01/42
4/22 at 100.00
 
AAA
 
1,153,320
 
 
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–
 
2,291,620
 
 
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–
 
35,118
 
     
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
 
34,682
 
 
40
 
7.000%, 8/01/41
2/21 at 100.00
 
BBB
 
45,705
 
     
San Jose Redevelopment Agency, California, Tax Allocation Bonds, Merged Area Redevelopment Project, Series 2006C:
           
 
100
 
5.000%, 8/01/24 – NPFG Insured
8/17 at 100.00
 
BBB
 
101,212
 
 
275
 
5.000%, 8/01/25 – NPFG Insured
8/17 at 100.00
 
BBB
 
277,731
 
 
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
 
364,046
 
 
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
 
55,110
 
 
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–
 
108,226
 
 
35,420
 
Total Tax Obligation/Limited
       
37,753,936
 
     
Transportation – 3.5% (2.5% 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
 
875,261
 
 
220
 
Bay Area Toll Authority, California, Revenue Bonds, San Francisco Bay Area Toll Bridge, Series 2008, Trust 3211, 13.453%, 10/01/32 (IF)
4/18 at 100.00
 
AA
 
322,659
 
 
2,000
 
Foothill/Eastern Transportation Corridor Agency, California, Toll Road Revenue Bonds, Series 1995A, 5.000%, 1/01/35
1/13 at 100.00
 
BBB–
 
1,995,860
 
 
3,000
 
Total Transportation
       
3,193,780
 
     
U.S. Guaranteed – 11.0% (7.7% of Total Investments) (4)
           
 
3,000
 
California Infrastructure and 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
 
3,875,640
 
     
California State, General Obligation Bonds, Series 2003:
           
 
500
 
5.000%, 2/01/31 (Pre-refunded 2/01/13) – NPFG Insured
2/13 at 100.00
 
Aaa
 
510,045
 
 
770
 
5.000%, 2/01/31 (Pre-refunded 2/01/13) – NPFG Insured
2/13 at 100.00
 
A1 (4)
 
781,065
 
 
370
 
California, Economic Recovery Revenue Bonds, Series 2004A, 5.000%, 7/01/15 (Pre-refunded 7/01/14)
7/14 at 100.00
 
Aaa
 
402,234
 
 
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
 
3,656,958
 
 
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)
 
397,056
 
     
University of California, Revenue Bonds, Multi-Purpose Projects, Series 2003A:
           
 
255
 
5.125%, 5/15/17 (Pre-refunded 5/15/13) – AMBAC Insured
5/13 at 100.00
 
Aa1 (4)
 
263,718
 
 
55
 
5.125%, 5/15/17 (Pre-refunded 5/15/13) – AMBAC Insured
5/13 at 100.00
 
Aa1 (4)
 
56,913
 
 
8,770
 
Total U.S. Guaranteed
       
9,943,629
 
 
22   Nuveen Investments
 
 
 

 
 
 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
 
Ratings (3)
 
Value
 
     
Utilities – 1.7% (1.2% 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
$
973,544
 
 
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–
 
285,324
 
 
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
 
302,449
 
 
1,460
 
Total Utilities
       
1,561,317
 
     
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+
 
1,206,979
 
 
205
 
Healdsburg Public Financing Authority, California, Wastewater Revenue Bonds, Series 2006, 5.000%, 4/01/36 – NPFG Insured
4/16 at 100.00
 
AA–
 
215,512
 
 
670
 
Metropolitan Water District of Southern California, Waterworks Revenue Bonds, Tender Option Bond Trust 09-8B, 17.929%, 7/01/35 (IF) (5)
7/19 at 100.00
 
AAA
 
1,040,537
 
 
1,500
 
Orange County Water District, California, Revenue Certificates of Participation, Tender Option Bond Trust 11782-1, 17.486%, 2/15/35 (IF)
8/19 at 100.00
 
AAA
 
2,214,240
 
 
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+
 
1,811,890
 
 
5,295
 
Total Water and Sewer
       
6,489,158
 
$
123,929
 
Total Investments (cost $116,652,863) – 142.8%
       
129,116,125
 
     
Floating Rate Obligations – (6.1)%
       
(5,525,000
)
     
MuniFund Term Preferred Shares, at Liquidation Value – (39.0)% (6)
       
(35,250,000
)
     
Other Assets Less Liabilities – 2.3%
       
2,097,645
 
     
Net Assets Applicable to Common Shares – 100%
     
$
90,438,770
 
 
(1)
 
All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted.
(2)
 
Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns.
(3)
 
Ratings: Using the 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 collateralize 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 27.3%.
N/R
 
Not rated.
(ETM)
 
Escrowed to maturity.
(IF)
 
Inverse floating rate investment.
(UB)
 
Underlying bond of an inverse floating rate trust reflected as a financing transaction. 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
 
23
 
 
 

 
 
   
Nuveen California Dividend Advantage Municipal Fund
NAC
 
Portfolio of Investments
   
August 31, 2012 (Unaudited)
 

 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
 
Ratings (3)
 
Value
 
     
Consumer Staples – 7.5% (5.2% of Total Investments)
           
$
810
 
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+
$
788,292
 
     
Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed Bonds, Series 2007A-1:
           
 
20,615
 
5.750%, 6/01/47
6/17 at 100.00
 
BB–
 
17,556,351
 
 
2,895
 
5.125%, 6/01/47
6/17 at 100.00
 
BB–
 
2,232,740
 
 
8,255
 
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–
 
6,557,194
 
 
32,575
 
Total Consumer Staples
       
27,134,577
 
     
Education and Civic Organizations – 6.8% (4.8% 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
 
2,785,350
 
 
290
 
California Educational Facilities Authority, Revenue Bonds, University of Redlands, Series 2005A, 5.000%, 10/01/35
10/15 at 100.00
 
A3
 
302,818
 
 
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
 
10,822,200
 
     
California Educational Facilities Authority, Revenue Bonds, University of the Pacific, Series 2006:
           
 
200
 
5.000%, 11/01/21
11/15 at 100.00
 
A2
 
216,052
 
 
265
 
5.000%, 11/01/25
11/15 at 100.00
 
A2
 
282,389
 
 
4,685
 
California State Public Works Board, Lease Revenue Bonds, University of California Regents, Tender Option Bond Trust 1065, 9.131%, 3/01/33 (IF)
3/18 at 100.00
 
Aa2
 
5,611,225
 
 
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
 
BBB
 
1,373,250
 
 
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
 
613,276
 
 
2,775
 
University of California, Revenue Bonds, Multi-Purpose Projects, Series 2003A, 5.125%, 5/15/17 – AMBAC Insured
5/13 at 100.00
 
Aa1
 
2,869,822
 
 
22,570
 
Total Education and Civic Organizations
       
24,876,382
 
     
Health Care – 31.0% (21.8% 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
 
2,203,826
 
 
3,815
 
California Health Facilities Financing Authority, Revenue Bonds, Catholic Healthcare West, Series 2008J, 5.625%, 7/01/32
7/15 at 100.00
 
A+
 
4,172,427
 
 
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
 
A+
 
1,536,369
 
 
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–
 
15,786,317
 
 
6,530
 
California Health Facilities Financing Authority, Revenue Bonds, Sutter Health, Series 2011B, 6.000%, 8/15/42
8/20 at 100.00
 
AA–
 
7,838,155
 
 
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
 
1,158,931
 
 
5,500
 
California Statewide Communities Development Authority, Revenue Bonds, Sutter Health, Series 2011A, 6.000%, 8/15/42
8/20 at 100.00
 
AA–
 
6,601,815
 
 
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
 
3,423,354
 
     
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
 
1,855,691
 
 
3,870
 
5.250%, 7/01/30
7/15 at 100.00
 
BBB
 
4,045,118
 
 
24
 
Nuveen Investments
 
 
 

 

 
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+
$
10,700,235
 
 
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+
 
3,465,379
 
 
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+
 
10,752,053
 
 
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
 
2,750,603
 
 
1,586
 
California Statewide Communities Development Authority, Revenue Bonds, Saint Joseph Health System, Trust 2554, 18.234%, 7/01/47 – AGM Insured (IF)
7/18 at 100.00
 
AA–
 
2,159,180
 
 
10,500
 
Duarte, California, Certificates of Participation, City of Hope National Medical Center, Series 1999A, 5.250%, 4/01/31
10/12 at 100.00
 
AA–
 
10,511,655
 
 
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
 
1,015,470
 
 
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
 
3,348,202
 
 
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+
 
1,070,900
 
 
1,725
 
Newport Beach, California, Revenue Bonds, Hoag Memorial Hospital Presbyterian, Series 2011A, 6.000%, 12/01/40
12/21 at 100.00
 
AA
 
2,122,199
 
 
675
 
Oak Valley Hospital District, Stanislaus County, California, Revenue Bonds, Series 2010A, 6.500%, 11/01/29
11/20 at 100.00
 
BB+
 
718,409
 
 
5,450
 
Palomar Pomerado Health Care District, California, Certificates of Participation, Series 2010, 6.000%, 11/01/41
11/20 at 100.00
 
Baa3
 
5,847,196
 
 
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
 
2,621,194
 
 
3,300
 
San Buenaventura, California, Revenue Bonds, Community Memorial Health System, Series 2011, 7.500%, 12/01/41
12/21 at 100.00
 
BB
 
4,008,510
 
 
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+
 
3,257,910
 
 
103,526
 
Total Health Care
       
112,971,098
 
     
Housing/Multifamily – 2.8% (2.0% of Total Investments)
           
 
1,995
 
California Municipal Finance Authority, Mobile Home Park Revenue Bonds, Caritas Projects Series 2010A, 6.400%, 8/15/45
8/20 at 100.00
 
BBB
 
2,184,365
 
 
4,600
 
California Municipal Finance Authority, Mobile Home Park Revenue Bonds, Caritas Projects Series 2012A, 5.125%, 8/15/32
8/22 at 100.00
 
BBB
 
4,847,434
 
 
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
 
326,362
 
 
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+
 
1,749,064
 
 
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
 
1,135,478
 
 
9,760
 
Total Housing/Multifamily
       
10,242,703
 
     
Housing/Single Family – 0.6% (0.4% of Total Investments)
           
 
315
 
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
 
328,797
 
 
2,395
 
California Housing Finance Agency, Home Mortgage Revenue Bonds, Tender Option Bond Trust 3206, 8.248%, 2/01/29 (Alternative Minimum Tax) (IF)
2/17 at 100.00
 
BBB
 
1,963,780
 
 
2,710
 
Total Housing/Single Family
       
2,292,577
 
 
Nuveen Investments
 
25
 
 
 

 
 
   
Nuveen California Dividend Advantage Municipal Fund (continued)
NAC
 
Portfolio of Investments August 31, 2012 (Unaudited)
 
 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
 
Ratings (3)
 
Value
 
     
Industrials – 0.1% (0.1% 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
$
408,064
 
     
Long-Term Care – 0.3% (0.2% 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
 
1,197,380
 
     
Tax Obligation/General – 30.5% (21.4% 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–
 
4,351,410
 
 
16,840
 
0.000%, 8/01/43 – AGM Insured
No Opt. Call
 
AA–
 
3,098,560
 
 
10,000
 
California State, General Obligation Bonds, Various Purpose Series 2009, 6.000%, 11/01/39
11/19 at 100.00
 
A1
 
11,931,900
 
     
California State, General Obligation Bonds, Various Purpose Series 2010:
           
 
5,000
 
6.000%, 3/01/33
3/20 at 100.00
 
A1
 
6,157,350
 
 
8,000
 
5.500%, 3/01/40
3/20 at 100.00
 
A1
 
9,180,960
 
 
1,000
 
5.250%, 11/01/40
11/20 at 100.00
 
A1
 
1,132,810
 
     
California State, General Obligation Bonds, Various Purpose Series 2011:
           
 
1,650
 
5.000%, 9/01/41
9/21 at 100.00
 
A1
 
1,812,261
 
 
7,000
 
5.000%, 10/01/41
10/21 at 100.00
 
A1
 
7,693,560
 
     
California State, General Obligation Bonds, Various Purpose Series 2012:
           
 
2,000
 
5.250%, 2/01/28
No Opt. Call
 
A1
 
2,355,060
 
 
5,000
 
5.250%, 2/01/29
No Opt. Call
 
A1
 
5,851,950
 
 
2,000
 
5.000%, 4/01/42
4/22 at 100.00
 
A1
 
2,203,880
 
 
4,435
 
California State, General Obligation Refunding Bonds, Series 2002, 6.000%, 4/01/16 – AMBAC Insured
No Opt. Call
 
A1
 
5,258,934
 
 
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
 
Aa1
 
3,463,840
 
 
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–
 
6,208,892
 
 
3,000
 
Los Angeles Unified School District, California, General Obligation Bonds, Series 2005A-2, 5.000%, 7/01/24 – NPFG Insured
7/15 at 100.00
 
Aa2
 
3,319,680
 
 
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
 
5,334,623
 
 
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+
 
633,690
 
 
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+
 
4,593,040
 
 
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
 
5,245,050
 
 
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
 
21,093,489
 
 
160,355
 
Total Tax Obligation/General
       
110,920,939
 
     
Tax Obligation/Limited – 37.1% (26.0% 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
 
1,036,610
 
 
615
 
5.800%, 9/01/35
9/14 at 102.00
 
N/R
 
631,740
 
 
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
 
515,872
 
 
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
 
1,179,530
 
 
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
 
2,428,680
 
 
26
 
Nuveen Investments
 
 
 

 

 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
 
Ratings (3)
 
Value
 
     
Tax Obligation/Limited (continued)
           
$
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
$
2,029,020
 
 
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
 
729,681
 
 
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–
 
1,238,757
 
 
1,480
 
Commerce Joint Power Financing Authority, California, Tax Allocation Bonds, Redevelopment Projects 2 and 3, Refunding Series 2003A, 5.000%, 8/01/28 – RAAI Insured
8/13 at 100.00
 
BBB
 
1,485,091
 
 
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
3/13 at 101.00
 
A–
 
1,046,802
 
 
1,430
 
Fontana, California, Redevelopment Agency, Jurupa Hills Redevelopment Project, Tax Allocation Refunding Bonds, 1997 Series A, 5.500%, 10/01/27
10/12 at 100.00
 
A–
 
1,431,516
 
 
3,490
 
Fontana, California, Senior Special Tax Refunding Bonds, Heritage Village Community Facilities District 2, Series 1998A, 5.250%, 9/01/17 – NPFG Insured
3/13 at 100.00
 
BBB
 
3,534,951
 
 
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
 
1,145,948
 
 
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
 
4,034,566
 
 
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–
 
32,065,912
 
 
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
 
BB+
 
2,532,681
 
 
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
 
4,996,665
 
 
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+
 
1,307,372
 
     
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
 
335,933
 
 
755
 
5.125%, 9/01/36
9/16 at 100.00
 
N/R
 
768,779
 
 
675
 
Lammersville School District, San Joaquin County, California, Special Tax Bonds, Community Facilities District 2002 Mountain House, Series 2006, 5.125%, 9/01/35
9/16 at 100.00
 
N/R
 
676,330
 
 
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
 
2,083,760
 
 
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+
 
1,004,060
 
 
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
 
1,321,179
 
 
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–
 
1,613,630
 
 
3,500
 
Murrieta Redevelopment Agency, California, Tax Allocation Bonds, Series 2007A, 5.000%, 8/01/37 – NPFG Insured
8/17 at 100.00
 
A–
 
3,552,395
 
 
695
 
National City Community Development Commission, California, Tax Allocation Bonds, National City Redevelopment Project, Series 2011, 6.500%, 8/01/24
8/21 at 100.00
 
A–
 
858,534
 
 
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
 
9,289,240
 
     
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
 
544,106
 
 
245
 
5.000%, 9/01/33
9/14 at 102.00
 
N/R
 
245,527
 
 
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–
 
299,988
 
 
Nuveen Investments
 
27
 
 
 

 
 
   
Nuveen California Dividend Advantage Municipal Fund (continued)
NAC
 
Portfolio of Investments August 31, 2012 (Unaudited)
 
 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
 
Ratings (3)
 
Value
 
     
Tax Obligation/Limited (continued)
           
$
3,290
 
Oakland Redevelopment Agency, California, Subordinate Lien Tax Allocation Bonds, Central District Redevelopment Project, Series 2003, 5.500%, 9/01/16 – FGIC Insured
3/13 at 100.00
 
A–
$
3,350,273
 
 
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–
 
1,022,380
 
     
Perris Union High School District Financing Authority, Riverside County, California, Revenue Bonds, Series 2011:
           
 
245
 
6.000%, 9/01/33
9/12 at 103.00
 
N/R
 
253,551
 
 
530
 
6.125%, 9/01/41
9/12 at 103.00
 
N/R
 
548,232
 
 
8,250
 
Pico Rivera Water Authority, California, Revenue Bonds, Series 2001A, 6.250%, 12/01/32
12/12 at 101.00
 
N/R
 
8,370,698
 
 
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
 
2,299,931
 
 
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
 
1,575,197
 
 
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+
 
929,027
 
 
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–
 
626,442
 
 
150
 
Riverside County Redevelopment Agency, California, Tax Allocation Bonds, Jurupa Valley Project Area, Series 2011B, 6.500%, 10/01/25
10/21 at 100.00
 
A–
 
167,535
 
 
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–
 
1,885,408
 
 
770
 
Roseville, California, Certificates of Participation, Public Facilities, Series 2003A, 5.000%, 8/01/25 – AMBAC Insured
8/13 at 100.00
 
AA–
 
782,559
 
 
2,500
 
Sacramento City Financing Authority, California, Lease Revenue Refunding Bonds, Series 1993A, 5.400%, 11/01/20 – AMBAC Insured
No Opt. Call
 
A1
 
2,855,150
 
 
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
 
1,180,924
 
 
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–
 
140,471
  <