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, 2013

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
9
   
Common Share Information
11
   
Risk Considerations
13
   
Performance Overview and Holding Summaries
14
   
Shareholder Meeting Report
19
   
Portfolios of Investments
20
   
Statement of Assets and Liabilities
54
   
Statement of Operations
55
   
Statement of Changes in Net Assets
56
   
Statement of Cash Flows
58
   
Financial Highlights
60
   
Notes to Financial Statements
69
   
Annual Investment Management Agreement Approval Process
81
   
Reinvest Automatically, Easily and Conveniently
90
   
Glossary of Terms Used in this Report
91
   
Additional Fund Information
95
 
Nuveen Investments
 
3

 
 

 
Chairman’s Letter to Shareholders
 
 
Dear Shareholders,
 
I am pleased to have this opportunity to introduce myself to you as the new independent chairman of the Nuveen Fund Board, effective July 1, 2013. I am honored to have been selected as chairman, with its primary responsibility to serve the interests of the Nuveen Fund shareholders. My predecessor, Robert Bremner, was the first independent director to serve as chairman of the Board and I, and my fellow Board members, plan to continue his legacy of strong independent oversight of your funds.
 
The global economy has hit major turning points over the last several months to a year. The developed world is gradually recovering from their financial crisis while the emerging markets appear to be struggling with the downshift of China’s growth potential. Japan is entering a new era of growth after decades of economic stagnation and many of the Eurozone nations appear to be exiting their recession. Despite the positive events, there are still potential risks. Middle East tensions, rising oil prices, defaults in Europe and fallout from the financial stress in emerging markets could all reverse the recent progress in the global economy.
 
On the domestic front, the U.S. economy is experiencing sustainable slow growth. Corporate fundamentals are strong as earnings per share and corporate cash are at the highest level in two decades. Unemployment is trending down and the housing market has experienced a rebound, each assisting the positive economic scenario. However, there are some issues to be watched. Interest rates are expected to increase but significant uncertainty about the timing remains. Partisan politics in Washington D.C. with their troublesome outcome add to the uncertainties that could cause problems for the economy going forward.
 
In the near term, governments are focused on economic recovery and the growth of their economies, which could lead to an environment of attractive investment opportunities. Over the long term, the uncertainties mentioned earlier could hinder the potential growth. Because of this, Nuveen’s investment management teams work hard to balance return and risk with a range of investment strategies. I encourage you to read the following commentary on the management of your fund.
 
On behalf of the other members of the Nuveen Fund Board, we look forward to continuing to earn your trust in the months and years ahead.
 
Sincerely,
 
 
William J. Schneider
Chairman of the Nuveen Fund Board
October 21, 2013
 
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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)
 
These Funds feature management by Nuveen Asset Management, LLC, an affiliate of Nuveen Investments. Portfolio manager Scott R. Romans, PhD., discusses key investment strategies and the six-month performance of these Nuveen California Municipal Funds. Scott has managed these five Funds since 2003.
 
What key strategies were used to manage these California Funds during the six-month reporting period ended August 31, 2013?
 
During this reporting period, uncertainty about the next step for the Federal Reserve’s quantitative easing program and the potential impact on the economy and financial markets led to increased market volatility. Ongoing political debate over federal spending and headline credit stories involving Detroit and Puerto Rico also contributed to an unsettled environment and prompted an increase in selling. Given this backdrop, municipal bond prices generally declined during this period, while the yield curve steepened. During this reporting period, 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.
 
We primarily focused on three strategies intended to enhance the Funds’ positioning and increase income distribution. The first of these strategies involved purchasing bonds that we believed had the best prospects for being advance refunded, that is, bonds with higher coupons or slightly shorter calls. Carrying out this strategy did not involve selling any bonds from our portfolios, but instead reinvesting the proceeds from bonds being called. Once interest rates started to rise, our focus shifted to bond swaps. Virtually all of the bonds we added to our portfolios in 2012 were purchased at significant premiums. Because premiums must be amortized, this cuts into the amount of income available for distribution from the coupon. By executing a bond swap in a rising interest rate environment, that amortization expense is basically converted into a loss, so that more of the income from the coupon can be distributed to shareholders. Most of the bonds we swapped offered similar risk characteristics and often involved the same credit, but with different maturity dates. An additional benefit of this strategy was the generation of tax loss carry-forwards that can be used to offset future capital gains. During this reporting period, we pursued this second strategy rather aggressively.
 
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, 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

 
 

 

Portfolio Manager’s Comments (continued)
 
The third strategy involved an approach known as “couponing up.” Couponing up is the process of working to improve the book yields on Fund holdings, which enables us to maintain and potentially improve the dividend stream that is passed on to shareholders. For example, during the reporting period we sold some of the Funds’ redevelopment agency holdings with 5% coupons in the 20-year maturity range at attractive prices into strong retail demand. We then used the proceeds from these sales to purchase more recent redevelopment issuance from 2010-2011 with higher coupons (e.g., 5.75%). These bonds ultimately provide a more defensive structure and enable us to increase income distributions.
 
Activity during this period was driven primarily by the execution of these strategies and the reinvestment of proceeds from called and matured bonds, which was aimed at keeping the Funds fully invested and supporting their income streams. During the first part of this period, we experienced an increased number of current bond calls resulting from a growth in refinancings, which provided a meaningful source of liquidity. These calls also had an impact on some of the Funds’ durations, since the bonds called as part of current refundings were priced to short calls and therefore had negligible durations. Although this was not a strategy during this reporting period, reinvesting these call proceeds in anything other than cash had the effect of extending duration. In the latter months of this period, as interest rates rose, refinancing activity waned. As the supply of new paper associated with the refinancings declined in the California market, we focused on the secondary market for the majority of our purchases.
 
As of August 31, 2013, all five 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 during the six-month reporting period ended August 31, 2013?
 
The tables in each Fund’s Performance Overview and Holding Summaries section of this report provide the Funds’ returns for the six-month, one-year, five-year, and ten-year periods ended August 31, 2013. Each Fund’s returns are compared with the performance of a corresponding market index and Lipper classification average.
 
For the six months ended August 31, 2013, the cumulative returns on common share net asset value (NAV) for all five of these Funds underperformed the returns for the S&P Municipal Bond California Index as well as the national S&P Municipal Bond Index. For the same period, NCU exceeded the average return for the Lipper California Municipal Debt Funds Classification Average, while NAC, NVX, NZH and NKX trailed the Lipper average return.
 
Key management factors that influenced the Funds’ returns included duration and yield curve positioning, credit exposure and sector allocation. The use of regulatory leverage also was an important factor in performance during this reporting period. Leverage is discussed in more detail later in this report.
 
As interest rates rose and the yield curve steepened, municipal bonds with shorter maturities generally outperformed those with longer maturities. Overall, credits at the shortest end of the municipal yield curve posted the best returns during this period, while bonds at the longest end produced the weakest results. Duration and yield curve positioning was the major factor detracting from the Funds’ performance. All of these Funds tended to be positioned with durations slightly longer than that of the index, which hurt their performance. On the whole, NAC was the least advantageously positioned in terms of duration and yield curve exposure, with a duration that exceed that of the market by the widest margin. NCU benefited from having the shortest effective duration among these five Funds.
 
Credit exposure also factored into the Funds’ performance during these six months, as credit spreads, or the difference in yield spreads between U.S. Treasury securities and comparable investments such as municipal bonds, began to
 
6
 
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widen and higher quality bonds generally outperformed lower quality bonds. All of these Funds generally benefited from their exposure to the higher rated categories. However, they tended to be underweighted in these categories and overweighted in lower rated bonds, which hampered their performance. Among these Funds, NAC, NVX and NZH had the heaviest allocations of lower rated bonds (bonds ranked BBB or lower), while NCU was helped by a heavier weighting of bonds rated AAA. NKX, which was managed as an insured Fund until May 2012, continued to have a relatively higher credit profile, which worked in its favor during this reporting period.
 
After underperforming for many months, pre-refunded bonds, which are typically backed by U.S. Treasury securities, were among the best performing market segments during this reporting period. The outperformance of these bonds can be attributed primarily to their shorter effective maturities and higher credit quality. NCU and NKX benefited from their heavier weightings in pre-refunded bonds, while NAC and NVX had the smallest allocations of these bonds. General obligation (GO), housing, redevelopment agency (RDA) and tax increment financing (TIF) district bonds also typically outperformed the general municipal market. During this reporting period, NKX’s overweighting in TIF credits was a positive contributor to its performance.
 
In contrast, revenue bonds as a whole underperformed the municipal market. Among the revenue sectors that lagged municipal market performance by the widest margins for this reporting period were industrial development revenue (IDR), health care (including hospitals), water and sewer, and transportation. Tobacco credits backed by the 1998 master tobacco settlement agreement also were among the poorest performing market sectors, due in part to their longer effective durations. All of these Funds had similar allocations of tobacco credits, with NAC and NVX having the heaviest weightings and NCU and NKX the smallest.
 
Shareholders should be aware of issues impacting the Funds’ Puerto Rico holdings. In 2012, Moody’s downgraded Puerto Rico Sales Tax Financing Corporation (COFINA) bonds to Aa3 from Aa2 and Puerto Rico GO bonds to Baa3 from Baa1. These downgrades were based on Puerto Rico’s ongoing economic problems and, in the case of the COFINA bonds, the impact of these problems on the projected growth of sales tax revenues. However, the COFINA bonds were able to maintain a higher credit rating than the GOs because, unlike the revenue streams supporting some Puerto Rican issues, the sales taxes supporting the COFINA bonds cannot be diverted and used to support Puerto Rico’s GO bonds. For the reporting period ended August 31, 2013, Puerto Rico paper generally underperformed the municipal market as a whole. NCU did not have any Puerto Rico holdings, while NAC, NVX, NZH, and NKX had limited exposure to Puerto Rico, with holdings ranging from less than 1% in NAC to approximately 3% in NVX. The majority of these holdings are the dedicated sales tax bonds issued by COFINA. NVX also has a small position in Puerto Rico GO bonds, all of which are insured, and NZH holds Puerto Rico highway revenue credits. Exposure to enhanced Puerto Rico bonds (that is, credits that were not insured or escrowed) did not exceed 1.4% in any of these Funds and, in most cases, was significantly less. The limited nature of the Funds’ exposure to Puerto Rico credits resulted in negligible impact from the bonds’ underperformance.
 
Given the Puerto Rico situation and Detroit’s bankruptcy filing in July 2013, we should note that we continue to closely monitor credit conditions in the California market. In August 2013, Fitch upgraded the rating on California state GO debt to A from A-, while Moody’s and S&P maintained their ratings of A1 and A, respectively. We also continue to watch the status of local municipalities such as San Bernardino and Stockton, which filed for bankruptcy in 2012 as they became increasingly squeezed by budget problems resulting from rising pension costs. At the end of August 2013, San Bernardino was awarded bankruptcy protection by the court, joining Stockton, which has begun forming a restructuring plan after receiving Chapter 9 protection in April 2013. San Bernardino currently has unfunded pension liabilities of approximately $145 million as well as $50 million in bonds it issued in 2005 to help cover pension obligations. Pension liabilities, primarily due to the California Public Employees’ Retirement System (CalPERS), also were at the
 
Nuveen Investments
 
7

 
 

 

Portfolio Manager’s Comments (continued)
 
heart of Stockton’s bankruptcy filing. With the recent press surrounding Detroit, it is worth noting the major difference that exists between the bankruptcy in Detroit and the situation in Stockton and San Bernardino and that is that the California cities’ problems stem from pension obligations, rather than a history of heavy debt burdens and significant tax base deterioration over many years, as in Detroit. Among these Funds, both NZH and NKX had exposure to Stockton and San Bernardino, all of which is insured.
 
APPROVED FUND REORGANIZATIONS
 
On October 13, 2013 (subsequent to the close of this reporting period) the Nuveen Funds Board of Directors/Trustees approved a series of reorganizations for certain of the California Funds included in this report. The reorganizations are subject to customary conditions, including shareholder approval at annual shareholder meetings in early 2014. Each reorganization is intended to create one, larger-state fund, which would potentially offer shareholders the following benefits:
 
•  
Lower fund expense ratios (excluding the effects of leverage), as fixed costs are spread over a larger asset base;
   
•  
Enhanced secondary market trading, as larger funds potentially make it easier for investors to buy and sell fund shares;
   
•  
Lower per share trading costs through reduced bid/ask spreads due to a larger common share float; and
   
•  
Increased fund flexibility in managing the structure and cost of leverage over time.
 
The approved reorganizations are as follows:
 
Acquired Funds
 
Acquiring Funds
Nuveen California Performance Plus Municipal Fund, Inc. (NCP)
   
Nuveen California Municipal Market Opportunity Fund, Inc. (NCO)
   
Nuveen California Investment Quality Municipal Fund, Inc. (NQC)
 
Nuveen California Dividend Advantage Municipal Fund (NAC)
Nuveen California Select Quality Municipal Fund, Inc. (NVC)
   
Nuveen California Quality Income Municipal Fund, Inc. (NUC)
   
Nuveen California Premium Income Municipal Fund (NCU)
 
Nuveen California AMT-Free Municipal Income Fund (NKX)
 
Upon the closing of a reorganization, an Acquired Fund transfers its 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 Fund. Each Acquired Fund is then liquidated, dissolved and terminated in accordance with its Declaration of Trust. Shareholders of each Acquired Fund become shareholders of the Acquiring Fund. Holders of common shares receive newly issued common shares of their Acquiring Fund, the aggregate net asset value of which equal the aggregate net asset value of the common shares of the Acquired Fund held immediately prior to the reorganization (including for this purpose fractional Acquiring Fund shares to which shareholders are entitled). Fractional shares are sold on the open market and shareholders received cash in lieu of such fractional shares. Holders of preferred shares of each Acquired Fund receive on a one-for-one basis newly issued preferred shares of their Acquiring Fund, in exchange for preferred shares of the Acquired Fund held immediately prior to the reorganizations.
 
8
 
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Fund Leverage
 
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 negative impact on the performance of the Funds over this reporting period.
 
As of August 31, 2013, the Funds’ percentages of effective and regulatory leverage are as shown in the accompanying table:
 
     
NCU
   
NAC
   
NVX
   
NZH
   
NKX
 
Effective Leverage*
   
38.37
%
 
40.51
%
 
40.53
%
 
41.79
%
 
39.42
%
Regulatory Leverage*
   
30.53
%
 
30.27
%
 
32.79
%
 
34.85
%
 
34.50
%
 
*
Effective leverage is a Fund’s effective economic leverage, and includes both regulatory leverage and the leverage effects of certain derivative and other investments in a Fund’s portfolio that increase the Fund’s investment exposure. Currently, the leverage effects of Tender Option Bond (TOB) inverse floater holdings are included in effective leverage values, in addition to any regulatory leverage. Regulatory leverage consists of preferred shares issued or borrowings of a Fund. Both of these are part of a Fund’s capital structure. Regulatory leverage is subject to asset coverage limits set forth in the Investment Company Act of 1940.
 
Nuveen Investments
 
9

 
 

 

Fund Leverage (continued)
 
THE FUNDS’ REGULATORY LEVERAGE
 
As of August 31, 2013, the Funds have issued and outstanding MuniFund Term Preferred (MTP) Shares and/or Variable Rate Demand Preferred (VRDP) Shares as shown in the accompanying table.

   
MTP Shares
 
VRDP Shares
     
   
Series
 
Shares Issued at Liquidation Value
 
Annual
Interest Rate
NYSE /
NYSE MKT
Ticker
 
Series
 
Shares Issued at Liquidation Value
 
Total
 
NCU
   
2015
 
$
35,250,000
   
2.00
%
 
NCU PRC
   
 
$
       
         
$
35,250,000
                   
$
 
$
35,250,000
 
NAC
       
$
   
   
   
1
 
$
136,200,000
       
         
$
             
 
 
 
$
136,200,000
 
$
136,200,000  
NVX**
         
   
   
   
1
 
$
98,000,000
       
         
$
                   
$
98,000,000
 
$
98,000,000
 
NZH
   
2014
 
$
27,000,000
   
2.35
%
 
NZH PRA
   
 
$
       
     
2014-1
   
46,294,500
   
2.25
%
 
NZH PRB
   
   
       
     
2015
   
86,250,000
   
2.95
%
 
NZH PRC
   
   
       
         
$
159,544,500
                   
$
 
$
159,544,500
 
NKX
       
$
   
   
   
2
 
$
35,500,000
       
           
   
   
   
3
   
42,700,000
       
           
   
   
   
4
   
109,000,000
       
           
   
   
   
5
   
104,400,000
       
         
$
                   
$
291,600,000
 
$
291,600,000
 
 
**
Does not include MTP Shares noticed for redemption.
 
On August 29, 2013, NVX issued 980 VRDP Shares to qualified institutional buyers in a private offering pursuant to Rule 144A of the Securities Act of 1933. The proceeds of this issuance were used to redeem all series of the Fund’s MTP Shares, at their $10.00 liquidation value per share plus an additional amount representing any dividend amounts owed, on September 9, 2013 (subsequent to the close of this reporting period.)
 
Subsequent to the close of this reporting period, NZH redeemed all series of its MTP Shares, at their $10.00 liquidation value per share plus an additional amount representing any dividend amounts owed, with the proceeds of newly issued VRDP Shares. On September 26, 2013, VRDP Shares were issued to qualified institutional buyers in a private offering pursuant to Rule 144A of the Securities Act of 1933 and NZH’s MTP Shares were redeemed on October 7, 2013.
 
Refer to Notes to Financial Statements, Note 1 – General Information and Significant Accounting Policies for further details on MTP and VRDP Shares.
 
10
 
Nuveen Investments

 
 

 

Common Share Information
 
COMMON SHARE DIVIDENDS INFORMATION
 
During the current reporting period ended August 31, 2013, the Funds’ monthly dividends to common shareholders were as shown in the accompanying table.
 
   
Per Common Share Amounts
     
NCU
   
NAC
   
NVX
   
NZH
   
NKX
 
March
 
$
0.0700
 
$
0.0740
 
$
0.0750
 
$
0.0670
 
$
0.0700
 
April
   
0.0700
   
0.0740
   
0.0750
   
0.0670
   
0.0700
 
May
   
0.0700
   
0.0740
   
0.0750
   
0.0670
   
0.0700
 
June
   
0.0700
   
0.0740
   
0.0750
   
0.0670
   
0.0700
 
July
   
0.0700
   
0.0740
   
0.0750
   
0.0670
   
0.0700
 
August
   
0.0700
   
0.0740
   
0.0750
   
0.0670
   
0.0700
 
                                 
Market Yield**
   
6.56%
   
7.23%
   
7.05%
   
6.97%
   
6.98%
 
Taxable-Equivalent Yield**
   
10.05%
   
11.07%
   
10.80%
   
10.67%
   
10.69%
 
 
**
Market Yield is based on the Fund’s current annualized monthly dividend divided by the Fund’s current market price as of the end of the reporting period. 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 a Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower.
 
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, 2013, all of the Funds in this report had positive UNII balances, based on our best estimate, for tax and positive UNII balances for financial reporting purposes.
 
COMMON SHARE REPURCHASES
 
As of August 31, 2013, and since the inception of the Funds’ repurchase programs, the Funds have cumulatively repurchased and retired their outstanding 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.
 
     
NCU
   
NAC
   
NVX
   
NZH
   
NKX
 
Common Shares Cumulatively Repurchased and Retired
   
44,500
   
   
50,700
   
12,900
   
 
Common Shares Authorized for Repurchase
   
575,000
   
2,350,000
   
1,475,000
   
2,415,000
   
4,185,000
 
 
During the current reporting period, the Funds did not repurchase any of their outstanding common shares.
 
Nuveen Investments
 
11

 
 

 

Common Share Information (continued)
 
COMMON SHARE EQUITY SHELF PROGRAMS
 
The following Funds are authorized to issue additional common shares through their ongoing equity shelf program. Under this program, each Fund, subject to market conditions, may raise additional capital from time to time in varying amounts and offering methods at a net price at or above the Fund’s NAV per common share.
 
     
NAC
   
NKX
 
Additional Common Shares Authorized
   
2,300,000
   
4,100,000
 
 
During the current reporting period, NAC and NKX did not sell common shares through their equity shelf programs.
 
Refer to Notes to Financial Statements, Note 1 – General Information and Significant Accounting Policies for further details on the Funds’ Equity Shelf Programs.
 
OTHER COMMON SHARE INFORMATION
 
As of August 31, 2013, and during the current reporting period, the Funds’ common share prices were trading at a premium/(discount) to their common share NAVs as shown in the accompanying table.
 
     
NCU
   
NAC
   
NVX
   
NZH
   
NKX
 
Common Share NAV
 
$
13.99
 
$
13.33
 
$
13.61
 
$
12.35
 
$
13.23
 
Common Share Price
 
$
12.80
 
$
12.28
 
$
12.76
 
$
11.54
 
$
12.04
 
Premium/(Discount) to NAV
   
(8.51
)%
 
(7.88
)%
 
(6.25
)%
 
(6.56
)%
 
(8.99
)%
6-Month Average Premium/(Discount) to NAV
   
(5.25
)%
 
(5.69
)%
 
(6.48
)%
 
(7.49
)%
 
(7.72
)%
 
12
 
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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, Market and Price 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. Shares of closed-end investment companies like these Funds frequently trade at a discount to their net asset value (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.
 
Nuveen Investments
 
13

 
 

 
 
NCU
 
 
Nuveen California Premium Income Municipal Fund
 
Performance Overview and Holding Summaries as of August 31, 2013
 
Average Annual Total Returns as of August 31, 2013
 
   
Cumulative
 
Average Annual
     
6-Month
   
1-Year
 
5-Year
 
10-Year
NCU at Common Share NAV
   
(9.71
)%
   
(6.38
)%
 
6.45
%
 
5.97
%
NCU at Common Share Price
   
(16.47
)%
   
(10.44
)%
 
6.83
%
 
5.96
%
S&P Municipal Bond California Index
   
(5.98
)%
   
(3.05
)%
 
4.80
%
 
4.80
%
S&P Municipal Bond Index
   
(5.99
)%
   
(3.74
)%
 
4.50
%
 
4.55
%
Lipper California Municipal Debt Funds Classification Average
   
(11.81
)%
   
(7.54
)%
 
5.00
%
 
5.10
%
 
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. Comparative index and Lipper return information is provided for the Fund’s shares at NAV only. Indexes and Lipper averages are not available for direct investment.
 
 
Portfolio Composition1
 
(as a % of total investments)
 
Tax Obligation/Limited
33.8%
Tax Obligation/General
23.9%
Health Care
20.9%
U.S. Guaranteed
5.5%
Water and Sewer
4.6%
Other
11.3%

Credit Quality1,2,3
 
(as a % of total investment exposure)
 
AAA/U.S.Guaranteed
13.4%
AA
32.1%
A
34.4%
BBB
12.3%
BB or Lower
2.1%
N/R
3.7%

Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this page.
1
Holdings are subject to change.
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
Percentages may not add to 100% due to the exclusion of other assets less liabilities from the table.
 
14
 
Nuveen Investments

 
 

 
 
NAC
 
 
Nuveen California Dividend Advantage Municipal Fund
 
Performance Overview and Holding Summaries as of August 31, 2013
 
Average Annual Total Returns as of August 31, 2013
 
   
Cumulative
 
Average Annual
     
6-Month
   
1-Year
 
5-Year
 
10-Year
NAC at Common Share NAV
   
(13.60
)%
   
(8.87
)%
 
5.25
%
 
5.40
%
NAC at Common Share Price
   
(19.79
)%
   
(14.39
)%
 
5.51
%
 
5.24
%
S&P Municipal Bond California Index
   
(5.98
)%
   
(3.05
)%
 
4.80
%
 
4.80
%
S&P Municipal Bond Index
   
(5.99
)%
   
(3.74
)%
 
4.50
%
 
4.55
%
Lipper California Municipal Debt Funds Classification Average
   
(11.81
)%
   
(7.54
)%
 
5.00
%
 
5.10
%
 
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. Comparative index and Lipper return information is provided for the Fund’s shares at NAV only. Indexes and Lipper averages are not available for direct investment.
 
 
Portfolio Composition1
 
(as a % of total investments)
 
Tax Obligation/Limited
28.1%
Health Care
20.5%
Tax Obligation/General
19.8%
Water and Sewer
10.3%
Consumer Staples
4.9%
U.S. Guaranteed
4.4%
Other
12.0%

Credit Quality1,2,3
 
(as a % of total investment exposure)
 
AAA/U.S.Guaranteed
4.9%
AA
42.4%
A
27.8%
BBB
10.5%
BB or Lower
6.0%
N/R
5.2%
 
Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this page.
1
Holdings are subject to change.
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
Percentage may not add to 100% due to the exclusion of other assets less liabilities from the table.
 
Nuveen Investments
 
15

 
 

 
 
NVX
 
 
Nuveen California Dividend Advantage Municipal Fund 2
 
Performance Overview and Holding Summaries as of August 31, 2013
 
Average Annual Total Returns as of August 31, 2013
 
   
Cumulative
 
Average Annual
     
6-Month
   
1-Year
 
5-Year
 
10-Year
NVX at Common Share NAV
   
(14.24
)%
   
(9.85
)%
 
5.35
%
 
5.62
%
NVX at Common Share Price
   
(19.19
)%
   
(14.22
)%
 
7.10
%
 
6.06
%
S&P Municipal Bond California Index
   
(5.98
)%
   
(3.05
)%
 
4.80
%
 
4.80
%
S&P Municipal Bond Index
   
(5.99
)%
   
(3.74
)%
 
4.50
%
 
4.55
%
Lipper California Municipal Debt Funds Classification Average
   
(11.81
)%
   
(7.54
)%
 
5.00
%
 
5.10
%
 
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. Comparative index and Lipper return information is provided for the Fund’s shares at NAV only. Indexes and Lipper averages are not available for direct investment.
 
 
Portfolio Composition1
 
(as a % of total investments)
 
Tax Obligation/General
23.0%
Health Care
18.8%
Tax Obligation/Limited
17.9%
Utilities
10.2%
U.S. Guaranteed
8.5%
Water and Sewer
5.7%
Consumer Staples
5.4%
Education and Civic Organizations
3.7%
Other
6.8%

Credit Quality1,2,3
 
(as a % of total investment exposure)
 
AAA/U.S.Guaranteed
9.4%
AA
28.5%
A
16.3%
BBB
12.5%
BB or Lower
3.9%
N/R
3.8%
 
Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this page.
1
Holdings are subject to change.
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
Percentage may not add to 100% due to the exclusion of other assets less liabilities from the table.
 
16
 
Nuveen Investments

 
 

 
 
NZH
 
 
Nuveen California Dividend Advantage Municipal Fund 3
 
Performance Overview and Holding Summaries as of August 31, 2013
 
Average Annual Total Returns as of August 31, 2013
 
   
Cumulative
 
Average Annual
     
6-Month
   
1-Year
 
5-Year
 
10-Year
NZH at Common Share NAV
   
(13.54
)%
   
(8.91
)%
 
4.66
%
 
5.07
%
NZH at Common Share Price
   
(16.41
)%
   
(12.58
)%
 
4.70
%
 
5.48
%
S&P Municipal Bond California Index
   
(5.98
)%
   
(3.05
)%
 
4.80
%
 
4.80
%
S&P Municipal Bond Index
   
(5.99
)%
   
(3.74
)%
 
4.50
%
 
4.55
%
Lipper California Municipal Debt Funds Classification Average
   
(11.81
)%
   
(7.54
)%
 
5.00
%
 
5.10
%
 
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. Comparative index and Lipper return information is provided for the Fund’s shares at NAV only. Indexes and Lipper averages are not available for direct investment.
 
 
Portfolio Composition1
 
(as a % of total investments)
 
Tax Obligation/Limited
34.2%
Health Care
18.1%
Tax Obligation/General
11.6%
Water and Sewer
6.9%
Utilities
5.6%
Consumer Staples
5.5%
U.S. Guaranteed
5.4%
Other
12.7%

Credit Quality1,2,3
 
(as a % of total investment exposure)
 
AAA/U.S.Guaranteed
4.9%
AA
33.6%
A
22.9%
BBB
21.2%
BB or Lower
5.7%
N/R
5.5%
 
Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this page.
1
Holdings are subject to change.
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
Percentage may not add to 100% due to the exclusion of other assets less liabilities from the table.
 
Nuveen Investments
 
17

 
 

 
 
NKX
 
 
Nuveen California AMT-Free Municipal Income Fund
 
Performance Overview and Holding Summaries as of August 31, 2013
 
Average Annual Total Returns as of August 31, 2013
 
   
Cumulative
 
Average Annual
     
6-Month
   
1-Year
 
5-Year
 
10-Year
NKX at Common Share NAV
   
(12.54
)%
   
(8.51
)%
 
4.58
%
 
5.32
%
NKX at Common Share Price
   
(17.83
)%
   
(15.78
)%
 
3.60
%
 
4.76
%
S&P Municipal Bond California Index
   
(5.98
)%
   
(3.05
)%
 
4.80
%
 
4.80
%
S&P Municipal Bond Index
   
(5.99
)%
   
(3.74
)%
 
4.50
%
 
4.55
%
Lipper California Municipal Debt Funds Classification Average
   
(11.81
)%
   
(7.54
)%
 
5.00
%
 
5.10
%
 
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. Comparative index and Lipper return information is provided for the Fund’s shares at NAV only. Indexes and Lipper averages are not available for direct investment.
 
 
Portfolio Composition1
 
(as a % of total investments)
 
Tax Obligation/Limited
38.0%
Tax Obligation/General
19.5%
Health Care
12.5%
Water and Sewer
11.7%
U.S. Guaranteed
6.7%
Other
11.6%

Credit Quality1,2,3
 
(as a % of total investment exposure)
 
AAA/U.S.Guaranteed
8.1%
AA
43.5%
A
31.8%
BBB
4.8%
BB or Lower
3.7%
N/R
4.9%
 
Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this page.
1
Holdings are subject to change.
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
Percentage may not add to 100% due to the exclusion of other assets less liabilities from the table.
 
18
 
Nuveen Investments

 
 

 
 
NVX
 
 
Shareholder Meeting Report
 
The annual meeting of shareholders for NVX was held in the offices of Nuveen Investments on November 14, 2012; at this meeting the shareholders were asked to vote on the election of Board Members, to approve the elimination of the fundamental policies relating to the Fund’s ability to make loans and to approve the new fundamental policy relating to the Fund’s ability to make loans. The meeting was subsequently adjourned to December 14, 2012, January 24, 2013, February 22, 2013 and March 14, 2013.

   
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
   
12,380,831
   
4,451,978
 
Against
   
737,606
   
171,651
 
Abstain
   
309,910
   
65,092
 
Broker Non-Votes
   
4,355,757
   
2,511,278
 
Total
   
17,784,104
   
7,199,999
 
To approve the new fundamental policy relating to
             
the Fund’s ability to make loans.
             
For
   
12,374,303
   
4,451,358
 
Against
   
735,592
   
173,251
 
Abstain
   
318,452
   
64,112
 
Broker Non-Votes
   
4,355,757
   
2,511,278
 
Total
   
17,784,104
   
7,199,999
 
 
Nuveen Investments
 
19
 
 
 

 
 
NCU
 
 
Nuveen California Premium Income Municipal Fund
 
Portfolio of Investments
 
August 31, 2013 (Unaudited)

 
Principal
     
Optional Call
         
 
Amount (000)
 
Description (1)
 
Provisions (2)
Ratings (3)
   
Value
 
     
Consumer Staples – 5.6% (3.8% of Total Investments)
             
$
1,250
 
California County Tobacco Securitization Agency, Tobacco Settlement Asset-Backed Bonds, Alameda County Tobacco Asset Securitization Corporation, Series 2002, 5.750%, 6/01/29
 
12/13 at 100.00
BBB+
 
$
1,180,613
 
 
125
 
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+
   
116,020
 
 
2,415
 
California Statewide Financing Authority, Tobacco Settlement Asset-Backed Bonds, Pooled Tobacco Securitization Program, Series 2002A, 5.625%, 5/01/29
 
11/13 at 100.00
BBB
   
2,252,784
 
 
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
   
358,187
 
 
865
 
Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed Bonds, Series 2007A-2, 5.300%, 6/01/37
 
6/22 at 100.00
B
   
611,226
 
 
5,140
 
Total Consumer Staples
         
4,518,830
 
     
Education and Civic Organizations – 3.5% (2.4% 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
   
70,011
 
     
California Educational Facilities Authority, Revenue Bonds, University of the Pacific, Series 2006:
             
 
45
 
5.000%, 11/01/21
 
11/15 at 100.00
A2
   
46,671
 
 
60
 
5.000%, 11/01/25
 
11/15 at 100.00
A2
   
61,221
 
 
2,000
 
California State University, Systemwide Revenue Bonds, Series 2005C, 5.000%, 11/01/27 – NPFG Insured
 
11/15 at 100.00
Aa2
   
2,127,500
 
 
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
   
196,781
 
 
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–
   
310,734
 
 
2,660
 
Total Education and Civic Organizations
         
2,812,918
 
     
Health Care – 30.9% (20.9% 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+
   
336,615
 
 
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–
   
3,393,835
 
 
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
   
621,391
 
 
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
   
945,230
 
 
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–
   
381,334
 
 
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
   
691,185
 
 
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–
   
1,745,446
 
 
730
 
California Statewide Community Development Authority, Revenue Bonds, Kaiser Permanente System, Series 2001C, 5.250%, 8/01/31
 
8/16 at 100.00
A+
   
735,752
 
 
2,680
 
California Statewide Community Development Authority, Revenue Bonds, Methodist Hospital Project, Series 2009, 6.750%, 2/01/38
 
8/19 at 100.00
Aa2
   
3,092,532
 
 
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
   
2,209,158
 
 
1,690
 
California Statewide Community Development Authority, Revenue Bonds, Sutter Health, Series 2005A, 5.000%, 11/15/43
 
11/15 at 100.00
AA–
   
1,609,015
 

20
 
Nuveen Investments


 
 

 
 
 
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
 
$
823,977
 
 
2,600
 
Marysville, California, Revenue Bonds, The Fremont-Rideout Health Group, Series 2011, 5.250%, 1/01/42
 
1/21 at 100.00
A
   
2,530,658
 
 
1,450
 
Palomar Pomerado Health Care District, California, Certificates of Participation, Series 2010, 6.000%, 11/01/41
 
11/20 at 100.00
Baa3
   
1,383,663
 
 
1,000
 
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
   
909,380
 
 
850
 
San Buenaventura, California, Revenue Bonds, Community Memorial Health System, Series 2011, 7.500%, 12/01/41
 
12/21 at 100.00
BB
   
917,575
 
 
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+
   
1,454,563
 
 
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
   
974,990
 
 
24,752
 
Total Health Care
         
24,756,299
 
     
Housing/Multifamily – 1.2% (0.8% of Total Investments)
             
 
490
 
California Municipal Finance Authority, Mobile Home Park Revenue Bonds, Caritas Projects Series 2010A, 6.400%, 8/15/45
 
8/20 at 100.00
BBB
   
503,745
 
 
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
   
147,687
 
 
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
   
329,704
 
 
995
 
Total Housing/Multifamily
         
981,136
 
     
Housing/Single Family – 1.5% (1.0% of Total Investments)
             
 
1,150
 
California Housing Finance Agency, California, Home Mortgage Revenue Bonds, Series 2008L, 5.500%, 8/01/38
 
2/18 at 100.00
BBB
   
1,167,894
 
 
60
 
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
   
62,689
 
 
1,210
 
Total Housing/Single Family
         
1,230,583
 
     
Tax Obligation/General – 35.3% (23.9% 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
   
2,623,611
 
 
1,300
 
5.500%, 11/01/39
 
11/19 at 100.00
A1
   
1,359,293
 
 
3,500
 
California State, General Obligation Bonds, Various Purpose Series 2013, 5.000%, 4/01/37
 
4/23 at 100.00
A1
   
3,499,860
 
 
4,475
 
Coast Community College District, Orange County, California, General Obligation Bonds, Series 2006C, 5.000%, 8/01/31 – AGM Insured
 
8/18 at 100.00
Aa1
   
4,594,438
 
 
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
   
6,196,320
 
 
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
   
3,206,670
 
 
1,750
 
Oxnard School District, Ventura County, California, General Obligation Bonds, Election 2012 Series 2012A, 5.000%, 8/01/37 – AGM Insured
 
8/22 at 100.00
AA–
   
1,697,675
 
 
15
 
Riverside Community College District, California, General Obligation Bonds, Series 2004A, 5.250%, 8/01/22 – NPFG Insured
 
8/14 at 100.00
AA
   
15,646
 
 
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
   
1,459,281
 
 
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
   
2,604,141
 
 
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
   
1,010,020
 
 
33,090
 
Total Tax Obligation/General
         
28,266,955
 

Nuveen Investments
 
21
 
 
 

 
 
NCU
Nuveen California Premium Income Municipal Fund (continued)
 
Portfolio of Investments August 31, 2013 (Unaudited)

 
Principal
     
Optional Call
         
 
Amount (000)
 
Description (1)
 
Provisions (2)
Ratings (3)
   
Value
 
     
Tax Obligation/Limited – 49.9% (33.8% 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
 
$
828,490
 
     
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+
   
1,714,560
 
 
1,865
 
5.000%, 12/01/24 – AMBAC Insured
 
12/13 at 100.00
AA+
   
1,886,522
 
 
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
 
11/13 at 100.00
A2
   
5,942,608
 
 
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
   
1,074,670
 
 
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
   
2,303,080
 
 
535
 
California State, Economic Recovery Revenue Bonds, Series 2004A, 5.000%, 7/01/15
 
7/14 at 100.00
Aa2
   
556,052
 
 
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
A
   
165,733
 
 
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–
   
461,785
 
 
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
 
3/14 at 100.00
A
   
236,678
 
 
350
 
Fontana Redevelopment Agency, California, Jurupa Hills Redevelopment Project, Tax Allocation Refunding Bonds, 1997 Series A, 5.500%, 10/01/27
 
10/13 at 100.00
A–
   
349,979
 
 
425
 
Hesperia Community Redevelopment Agency, California, Tax Allocation Bonds, Series 2005A, 5.000%, 9/01/35 – SYNCORA GTY Insured
 
9/15 at 100.00
BB+
   
355,717
 
 
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
BB+
   
310,330
 
     
Irvine Unified School District, California, Special Tax Bonds, Community Facilities District Series 2006A:
             
 
75
 
5.000%, 9/01/26
 
9/16 at 100.00
N/R
   
73,874
 
 
175
 
5.125%, 9/01/36
 
9/16 at 100.00
N/R
   
164,539
 
 
3,500
 
Livermore Redevelopment Agency, California, Tax Allocation Revenue Bonds, Livermore Redevelopment Project Area, Series 2001A, 5.000%, 8/01/26 – NPFG Insured
 
2/14 at 100.00
A
   
3,534,405
 
 
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
   
312,731
 
 
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+
   
1,944,620
 
 
475
 
Lynwood Redevelopment Agency, California, Project A Revenue Bonds, Subordinate Lien Series 2011A, 7.250%, 9/01/38
 
9/21 at 100.00
A–
   
529,207
 
 
3,230
 
Murrieta Redevelopment Agency, California, Tax Allocation Bonds, Series 2005, 5.000%, 8/01/35 – NPFG Insured
 
8/15 at 100.00
A
   
2,990,754
 
 
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–
   
197,076
 
 
65
 
Novato Redevelopment Agency, California, Tax Allocation Bonds, Hamilton Field Redevelopment Project, Series 2011, 6.750%, 9/01/40
 
9/21 at 100.00
BBB+
   
69,102
 
     
Patterson Public Finance Authority, California, Revenue Bonds, Community Facilities District 2001-1, Senior Series 2013A:
             
 
450
 
5.250%, 9/01/30
 
9/23 at 100.00
N/R
   
431,442
 
 
405
 
5.750%, 9/01/39
 
9/23 at 100.00
N/R
   
393,308
 
 
70
 
Patterson Public Finance Authority, California, Revenue Bonds, Community Facilities District 2001-1, Subordinate Lien Series 2013B , 5.875%, 9/01/39
 
9/23 at 100.00
N/R
   
67,342
 
     
Perris Union High School District Financing Authority, Riverside County, California, Revenue Bonds, Series 2011:
             
 
60
 
6.000%, 9/01/33
 
9/13 at 100.00
N/R
   
60,227
 
 
135
 
6.125%, 9/01/41
 
9/13 at 100.00
N/R
   
134,017
 
 
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–
   
551,869
 

22
 
Nuveen Investments
 
 
 

 
 
 
Principal
     
Optional Call
         
 
Amount (000)
 
Description (1)
 
Provisions (2)
Ratings (3)
   
Value
 
     
Tax Obligation/Limited (continued)
             
$
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+
 
$
219,299
 
 
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–
   
43,602
 
 
1,500
 
Roseville, California, Special Tax Bonds, Community Facilities District 1, Fiddyment Ranch, Series 2005, 5.050%, 9/01/30
 
9/15 at 100.00
N/R
   
1,382,445
 
 
1,500
 
Sacramento City Financing Authority, California, Lease Revenue Refunding Bonds, Series 1993A, 5.400%, 11/01/20 – NPFG Insured
 
No Opt. Call
A
   
1,676,430
 
 
3,000
 
Sacramento City Financing Authority, California, Lease Revenue Refunding Bonds, Series 1993B, 5.400%, 11/01/20
 
No Opt. Call
A
   
3,352,860
 
 
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
   
1,020,250
 
 
2,700
 
San Francisco City and County Redevelopment Financing Authority, California, Tax Allocation Revenue Bonds, San Francisco Redevelopment Projects, Series 1998D, 0.000%, 8/01/24 – NPFG Insured
 
No Opt. Call
A
   
1,537,029
 
 
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–
   
2,106,320
 
 
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–
   
32,889
 
     
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
   
32,198
 
 
40
 
7.000%, 8/01/41
 
2/21 at 100.00
BBB
   
42,303
 
     
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
A
   
100,031
 
 
275
 
5.000%, 8/01/25 – NPFG Insured
 
8/17 at 100.00
A
   
272,555
 
 
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
   
362,786
 
 
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
   
51,385
 
 
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–
   
101,958
 
 
40,625
 
Total Tax Obligation/Limited
         
39,975,057
 
     
Transportation – 3.4% (2.3% of Total Investments)
             
 
220
 
Bay Area Toll Authority, California, Revenue Bonds, San Francisco Bay Area Toll Bridge, Series 2008, Trust 3211, 13.465%, 10/01/32 (IF)
 
4/18 at 100.00
AA
   
249,861
 
 
2,000
 
Foothill/Eastern Transportation Corridor Agency, California, Toll Road Revenue Bonds, Series 1995A, 5.000%, 1/01/35
 
1/14 at 100.00
BBB–
   
1,899,240
 
 
580
 
Port of Oakland, California, Revenue Refunding Bonds, Series 2012P, 5.000%, 5/01/29 (Alternative Minimum Tax)
 
No Opt. Call
A+
   
571,909
 
 
2,800
 
Total Transportation
         
2,721,010
 
     
U.S. Guaranteed – 8.0% (5.5% of Total Investments) (4)
             
 
780
 
Bay Area Toll Authority, California, Revenue Bonds, San Francisco Bay Area Toll Bridge, Series 2006F, 5.000%, 4/01/31 (Pre-refunded 4/01/16) (UB)
 
4/16 at 100.00
AA (4)
   
866,549
 
 
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
   
3,531,420
 
 
1,112
 
California State Public Works Board, Lease Revenue Bonds, University of California Regents, Tender Option Bond Trust 1065, 9.261%, 3/01/33 (Pre-refunded 3/01/18) (IF)
 
3/18 at 100.00
Aa2 (4)
   
1,142,402
 
 
370
 
California State, Economic Recovery Revenue Bonds, Series 2004A, 5.000%, 7/01/15 (Pre-refunded 7/01/14)
 
7/14 at 100.00
Aaa
   
384,878
 
 
135
 
Roseville Joint Union High School District, Placer County, California, General Obligation Bonds, Series 2006B, 5.000%, 8/01/27 (Pre-refunded 8/01/15) – FGIC Insured
 
8/15 at 100.00
AA (4)
   
146,925
 

Nuveen Investments
 
23
 
 
 

 

NCU
Nuveen California Premium Income Municipal Fund (continued)
 
Portfolio of Investments  August 31, 2013 (Unaudited)

 
Principal
     
Optional Call
         
 
Amount (000)
 
Description (1)
 
Provisions (2)
Ratings (3)
   
Value
 
     
U.S. Guaranteed (4) (continued)
             
$
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)
 
$
376,870
 
 
5,722
 
Total U.S. Guaranteed
         
6,449,044
 
     
Utilities – 1.5% (1.0% 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
   
886,031
 
 
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
   
291,077
 
 
1,185
 
Total Utilities
         
1,177,108
 
     
Water and Sewer – 6.8% (4.6% 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+
   
1,161,225
 
 
2,275
 
California Pollution Control Financing Authority, Water Furnishing Revenue Bonds, Poseidon Resources Channelside Desalination Project, Series 2012, 5.000%, 11/21/45 (Alternative Minimum Tax)
 
No Opt. Call
Baa3
   
1,786,307
 
 
205
 
Healdsburg Public Financing Authority, California, Wastewater Revenue Bonds, Series 2006, 5.000%, 4/01/36 – NPFG Insured
 
4/16 at 100.00
AA–
   
205,238
 
 
670
 
Metropolitan Water District of Southern California, Waterworks Revenue Bonds, Tender Option Bond Trust 09-8B, 17.523%, 7/01/35 (IF) (5)
 
7/19 at 100.00
AAA
   
738,635
 
 
1,500
 
Orange County Water District, California, Revenue Certificates of Participation, Tender Option Bond Trust 11782-1, 17.816%, 2/15/35 (IF)
 
8/19 at 100.00
AAA
   
1,581,600
 
 
5,775
 
Total Water and Sewer
         
5,473,005
 
$
123,954
 
Total Investments (cost $115,676,474) – 147.6%
         
118,361,945
 
     
Floating Rate Obligations – (6.9)%
         
(5,525,000
)
     
MuniFund Term Preferred Shares, at Liquidation Value – (43.9)% (6)
         
(35,250,000
)
     
Other Assets Less Liabilities – 3.2%
         
2,628,168
 
     
Net Assets Applicable to Common Shares – 100%
       
$
80,215,113
 
 
(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 29.8%.
(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, Note 3 – Portfolio Securities and Investments in Derivatives, Inverse Floating Rate Securities for more information.
 
See accompanying notes to financial statements.
 
24
 
Nuveen Investments

 
 

 
 
NAC
 
 
Nuveen California Dividend Advantage Municipal Fund
 
Portfolio of Investments
 
August 31, 2013 (Unaudited)

 
Principal
     
Optional Call
         
 
Amount (000)
 
Description (1)
 
Provisions (2)
Ratings (3)
   
Value
 
     
Consumer Staples – 7.5% (4.9% of Total Investments)
             
$
540
 
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+
 
$
501,206
 
     
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
B
   
15,224,796
 
 
2,895
 
5.125%, 6/01/47
 
6/17 at 100.00
B
   
1,939,968
 
 
8,255
 
Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed Bonds, Series 2007A-2, 5.300%, 6/01/37
 
6/22 at 100.00
B
   
5,833,148
 
 
32,305
 
Total Consumer Staples
         
23,499,118
 
     
Education and Civic Organizations – 5.4% (3.6% 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
   
2,559,125
 
 
290
 
California Educational Facilities Authority, Revenue Bonds, University of Redlands, Series 2005A, 5.000%, 10/01/35
 
10/15 at 100.00
A3
   
290,044
 
 
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
   
9,792,400
 
     
California Educational Facilities Authority, Revenue Bonds, University of the Pacific, Series 2006:
             
 
200
 
5.000%, 11/01/21
 
11/15 at 100.00
A2
   
207,428
 
 
265
 
5.000%, 11/01/25
 
11/15 at 100.00
A2
   
270,393
 
 
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–
   
1,294,725
 
 
565
 
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
   
565,141
 
 
2,000
 
University of California, General Revenue Bonds, Series 2013AF, 5.000%, 5/15/29
 
5/23 at 100.00
Aa1
   
2,118,180
 
 
17,070
 
Total Education and Civic Organizations
         
17,097,436
 
     
Health Care – 31.1% (20.5% of Total Investments)
             
 
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
   
3,854,371
 
 
1,500
 
California Health Facilities Financing Authority, Revenue Bonds, Cedars-Sinai Medical Center, Series 2009, 5.000%, 8/15/39
 
8/19 at 100.00
A+
   
1,468,995
 
 
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+
   
1,426,844
 
 
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–
   
14,340,757
 
 
6,530
 
California Health Facilities Financing Authority, Revenue Bonds, Sutter Health, Series 2011B, 6.000%, 8/15/42 (UB)
 
8/20 at 100.00
AA–
   
7,194,232
 
 
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
   
1,058,658
 
 
2,000
 
California Statewide Communities Development Authority, Revenue Bonds, Kaiser Permanente, Series 2012A, 5.000%, 4/01/42
 
4/22 at 100.00
A+
   
1,924,880
 
 
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–
   
1,606,364
 
 
5,500
 
California Statewide Communities Development Authority, Revenue Bonds, Sutter Health, Series 2011A, 6.000%, 8/15/42
 
8/20 at 100.00
AA–
   
6,059,460
 
 
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
   
2,819,866
 

Nuveen Investments
 
25

 
 

 
 
NAC
Nuveen California Dividend Advantage Municipal Fund (continued)
 
Portfolio of Investments August 31, 2013 (Unaudited)

 
Principal
     
Optional Call
         
 
Amount (000)
 
Description (1)
 
Provisions (2)
Ratings (3)
   
Value
 
     
Health Care (continued)
             
     
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–
 
$
1,792,226
 
 
3,870
 
5.250%, 7/01/30
 
7/15 at 100.00
BBB–
   
3,882,113
 
 
150
 
5.250%, 7/01/35
 
7/15 at 100.00
BBB–
   
149,507
 
 
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+
   
9,780,334
 
 
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+
   
3,119,389
 
 
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+
   
9,950,359
 
 
2,010
 
California Statewide Community Development Authority, Revenue Bonds, Methodist Hospital Project, Series 2009, 6.750%, 2/01/38
 
8/19 at 100.00
Aa2
   
2,319,399
 
 
5,000
 
California Statewide Community Development Authority, Revenue Bonds, Sutter Health, Series 2008B, 5.250%, 11/15/48
 
5/18 at 100.00
AA–
   
4,832,800
 
 
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
   
985,540
 
 
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
   
3,100,755
 
 
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+
   
996,090
 
 
675
 
Oak Valley Hospital District, Stanislaus County, California, Revenue Bonds, Series 2010A, 6.500%, 11/01/29
 
11/20 at 100.00
BB+
   
659,435
 
 
5,450
 
Palomar Pomerado Health Care District, California, Certificates of Participation, Series 2010, 6.000%, 11/01/41
 
11/20 at 100.00
Baa3
   
5,200,663
 
 
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
   
2,337,107
 
 
3,500
 
San Buenaventura, California, Revenue Bonds, Community Memorial Health System, Series 2011, 7.500%, 12/01/41
 
12/21 at 100.00
BB
   
3,778,250
 
 
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+
   
3,083,880
 
 
97,751
 
Total Health Care
         
97,722,274
 
     
Housing/Multifamily – 2.2% (1.4% of Total Investments)
             
 
1,985
 
California Municipal Finance Authority, Mobile Home Park Revenue Bonds, Caritas Projects Series 2010A, 6.400%, 8/15/45
 
8/20 at 100.00
BBB
   
2,040,679
 
 
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
   
4,419,312
 
 
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
   
299,619
 
 
6,905
 
Total Housing/Multifamily
         
6,759,610
 
     
Housing/Single Family – 0.6% (0.4% of Total Investments)
             
 
225
 
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
   
235,085
 
 
2,395
 
California Housing Finance Agency, Home Mortgage Revenue Bonds, Tender Option Bond Trust 3206, 8.413%, 2/01/29 (Alternative Minimum Tax) (IF)
 
2/17 at 100.00
BBB
   
1,528,896
 
 
2,620
 
Total Housing/Single Family
         
1,763,981
 
     
Industrials – 0.0% (0.0% 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
   
57,498
 
     
Long-Term Care – 0.4% (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
   
1,146,910
 

26
 
Nuveen Investments

 
 

 
 
 
Principal
     
Optional Call
         
 
Amount (000)
 
Description (1)
 
Provisions (2)
Ratings (3)
   
Value
 
     
Tax Obligation/General – 30.0% (19.8% of Total Investments)
             
$
3,000
 
Alhambra Unified School District, Los Angeles County, California, General Obligation Bonds, Refunding Series 2012A, 5.000%, 8/01/29 – AGM Insured
 
8/22 at 100.00
Aa3
 
$
3,093,510
 
     
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–
   
3,810,870
 
 
16,840
 
0.000%, 8/01/43 – AGM Insured
 
No Opt. Call
AA–
   
2,701,473
 
 
2,500
 
California State, General Obligation Bonds, Various Purpose Refunding Series 2012, 5.000%, 9/01/42
 
No Opt. Call
A1
   
2,492,400
 
 
2,000
 
California State, General Obligation Bonds, Various Purpose Refunding Series 2013, 5.000%, 2/01/29
 
No Opt. Call
A1
   
2,083,820
 
 
10,000
 
California State, General Obligation Bonds, Various Purpose Series 2009, 6.000%, 11/01/39
 
11/19 at 100.00
A1
   
11,164,300
 
     
California State, General Obligation Bonds, Various Purpose Series 2010:
             
 
5,000
 
6.000%, 3/01/33
 
3/20 at 100.00
A1
   
5,637,750
 
 
8,000
 
5.500%, 3/01/40
 
3/20 at 100.00
A1
   
8,278,000
 
 
1,000
 
5.250%, 11/01/40
 
11/20 at 100.00
A1
   
1,015,440
 
     
California State, General Obligation Bonds, Various Purpose Series 2011:
             
 
5,000
 
5.250%, 10/01/28
 
No Opt. Call
A1
   
5,349,550
 
 
2,000
 
5.000%, 9/01/31
 
No Opt. Call
A1
   
2,065,220
 
 
4,330
 
5.000%, 10/01/41
 
10/21 at 100.00
A1
   
4,316,837
 
 
4,435
 
California State, General Obligation Refunding Bonds, Series 2002, 6.000%, 4/01/16 – AMBAC Insured
 
No Opt. Call
A1
   
5,040,954
 
 
3,425
 
Coast Community College District, Orange County, California, General Obligation Bonds, Series 2006C, 5.000%, 8/01/31 – AGM Insured
 
8/18 at 100.00
Aa1
   
3,516,413
 
 
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–
   
5,453,644
 
 
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
   
3,206,670
 
 
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
A2
   
5,244,594
 
 
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+
   
4,075,800
 
 
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
   
15,624,844
 
 
155,960
 
Total Tax Obligation/General
         
94,172,089
 
     
Tax Obligation/Limited – 42.7% (28.1% 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
   
1,013,920
 
 
615
 
5.800%, 9/01/35
 
9/14 at 102.00
N/R
   
609,717
 
 
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
   
504,737
 
 
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
   
1,074,670
 
 
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
   
2,303,080
 
 
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
A
   
713,152
 
 
2,905
 
Carson Redevelopment Agency, California, Redevelopment Project Area 1 Tax Allocation Bonds, Series 2009A, 7.000%, 10/01/36
 
10/19 at 100.00
A–
   
3,180,975
 
 
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–
   
1,131,373
 
 
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
 
2/14 at 100.00
BBB
   
1,381,698
 
 
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
 
3/14 at 100.00
A
   
946,712
 

Nuveen Investments
 
27
 
 
 

 

NAC
Nuveen California Dividend Advantage Municipal Fund (continued)
 
Portfolio of Investments August 31, 2013 (Unaudited)

 
Principal
     
Optional Call
         
 
Amount (000)
 
Description (1)
 
Provisions (2)
Ratings (3)
   
Value
 
     
Tax Obligation/Limited (continued)
             
$
1,430
 
Fontana Redevelopment Agency, California, Jurupa Hills Redevelopment Project, Tax Allocation Refunding Bonds, 1997 Series A, 5.500%, 10/01/27