NUVEEN
EXCHANGE TRADED FUNDS
AUGUST 31, 1997
DEPENDABLE, TAX-FREE INCOME
TO HELP YOU KEEP MORE OF WHAT YOU EARN.
NCA
NCP
NCO
NQC
NVC
NUC
California
Photo of family at poolside.
<PAGE>
Build Your Wealth Automatically
Nuveen offers a number of convenient ways to add to your portfolio and earn the
tax-free income you need to achieve your financial goals.
Nuveen exchange-traded funds dividend reinvestment plan
Your Nuveen exchange-traded fund allows you to conveniently reinvest dividends
and/or capital gains distributions in additional fund shares. If you do not
elect to reinvest distributions, all distributions are paid by check, or can be
deposited directly into your bank or brokerage account.
By choosing to reinvest, you'll be able to invest money regularly and
automatically, and watch your investment grow through the power of tax-free
compounding. You'll also benefit from dollar-cost averaging, a technique of
investing at regular intervals, which allows you to build a high-quality,
tax-free portfolio conveniently and cost effectively over time.
Easy and convenient
To make recordkeeping easy and convenient, each month you'll receive a statement
showing your total dividends and distributions, the date of investment, the
shares acquired and the price per share, and the total number of shares you own.
Income or capital gains taxes may be payable on dividends or distributions that
are reinvested.
How shares are purchased
The shares you acquire by reinvesting will either be purchased on the open
market or newly issued by the fund. If the shares are trading at or above net
asset value at the time of valuation, the Fund will issue new shares at the
then-current market price. If the shares are trading at less than net asset
value, shares for your account will be purchased on the open market. Dividends
and distributions received to purchase shares in the open market will normally
be invested shortly after the dividend payment date; no interest will be paid on
dividends and distributions awaiting reinvestment. Because the market price of
shares may increase
(continued on inside back cover)
<PAGE>
Contents
2 DEAR SHAREHOLDER
4 ANSWERING YOUR QUESTIONS
7 NCA PERFORMANCE OVERVIEW
8 NCP PERFORMANCE OVERVIEW
9 NCO PERFORMANCE OVERVIEW
10 NQC PERFORMANCE OVERVIEW
11 NVC PERFORMANCE OVERVIEW
12 NUC PERFORMANCE OVERVIEW
13 FINANCIAL SECTION
63 FUND INFORMATION
<PAGE>
Dear Shareholder
Photo of: Timothy R. Schwertfeger, Chairman of the Board.
Wealth takes a lifetime to build. Once achieved, it should be preserved.
It's a pleasure to report to you on the performance of the Nuveen California
exchange-traded funds. For the fiscal year ended August 31, 1997, the value of
the funds covered in this report rose between 7.55% and 10.74% with tax-free
income dividends reinvested. Each fund's individual performance is detailed on
pages 7-12.
In addition to solid returns, shareholders continued to enjoy very attractive
current yields generated by portfolios of quality bonds, which provide excellent
income for investors. As of August 31, 1997, shareholders were receiving annual
tax-free yields on net asset value that ranged from 5.65% to 6.08%. To match
these yields, investors in the combined 37.5% federal and California income tax
bracket would have had to earn at least 9.04% on taxable alternatives of
comparable quality.
These results were produced in an environment of continued economic expansion
and the lowest unemployment rates in more than two decades, a combination that
in the past has predictably been accompanied by an increase in inflation.
Current conditions, however, give every indication that inflation is well under
control. After tightening short-term interest rates by 0.25% in March, the
Federal Reserve demonstrated its confidence in the path the economy is taking by
maintaining the status quo at subsequent meetings over the past six months. In
the first half of the year, investors and the markets focused their attention on
fiscal issues such as the federal budget accord and tax relief measures,
<PAGE>
"In addition to solid returns, shareholders continued to enjoy very attractive
current yields generated by portfolios of quality bonds."
including a reduction in the capital gains tax. As the economy continued to show
evidence of moderation, corporate earnings reports maintained their strength,
and interest rates fell over the past two quarters. All of this is positive
news. The net effect is that, although we have experienced some volatility, the
markets have performed very well this year.
Recently, the need for diversification and a renewed emphasis on asset
allocation--as well as attractive tax-free yields--have sparked increased
interest in municipal bonds. The current level of the stock market reminds
investors to re-allocate profits to other segments of the market in order to
limit risk. Nuveen exchange-traded funds provide an excellent alternative, and
their current yields make them very attractive.
On behalf of everyone at Nuveen, I thank you for your confidence in us and our
family of investments. We will continue to strive to provide you with
high-quality investments that withstand the test of time. We look forward to
reporting to you again in six months.
Sincerely,
TIMOTHY R. SCHWERTFEGER
Chairman of the Board
October 15, 1997
<PAGE>
Answering
Your Questions
Tom Spalding, Senior Investment Officer, talks about the municipal bond market
and offers insights into factors that affected fund performance over the past
year.
What economic and market factors influenced the performance of these funds over
the past year?
Over the past 12 months, the performance of these funds was driven by the lower
interest rates that resulted from a decline in inflation and reduction of the
federal deficit. Slow, steady - even predictable - economic growth over this
period helped to shave another 0.5% from the Consumer Price Index (CPI), which
is currently running at one of its lowest levels in three decades. For the 12
months ending August 1997, the CPI recorded an increase of only 2.4%, down from
a gain of 2.9% for the previous September-August period. The methodical pace of
growth also brought about a drop in the U.S. budget deficit from $107 billion in
1996 to an estimated $23 billion for this fiscal year, the smallest shortfall
since 1974, according to the Congressional Budget Office.
These two factors brought the yield on the 30-year Treasury bond down from 7.11%
to 6.61% over the past year. The municipal market followed suit, as the yield on
the Bloomberg 30-year AAA scale declined from 5.71% to 5.30% as of August 31,
1997.
Where did you find value in the current municipal bond market?
Over the past year, we found value by investing these funds in bonds issued by
three segments of the California market:
o Redevelopment agencies of cities and counties in southern California. These
agencies raise funds to complete public projects that foster economic
development. Improving land values stimulate increasing revenues from property
taxes that are then used to pay interest on the bonds.
<PAGE>
o Assessment districts in both Northern and Southern California. These bonds
were used to refund nonrated bonds issued in the 1980s to finance speculative
real estate projects. Many of these projects experienced significant
development, becoming mainstays of the communities where they were built.
Although no longer considered speculative, the bonds remain unrated, offering
attractive yields with moderate credit risk.
o The Foothill-Eastern Transportation Corridor. These bonds financed a toll road
that directly connects the job center in Orange County with residential
communities in Riverside and San Bernardino counties. The portion of the road
that is open has experienced growing use and increasing revenues.
What is your outlook for the California municipal market?
Although we expect sectors within the California market to ebb and flow, we are
anticipating a dynamic market, albeit one characterized by continued low supply.
Issues from electric utilities and public power agencies are expected to decline
in the aftermath of California's deregulation of the utility sector. Households
and businesses now have a choice of power suppliers, and this has caused utility
companies to reduce their production capacities as well as their need to issue
bonds. Mello-Roos and assessment districts, however, should continue to issue
nonrated refunding bonds offering attractive yields and moderate credit risk. We
also expect to see an increase in the issuance of bonds by colleges,
universities, and health care organizations following the elimination of volume
restrictions on these bonds in the recent Congressional budget agreement.
<PAGE>
What are your key strategies for the coming year?
As an integral part of our value investment strategy, one of our objectives is
to enhance portfolio value by increasing our investments in sectors of the
California municipal market that we consider undervalued. Refunding bonds issued
by assessment districts and redevelopment projects are examples of areas where
we will be concentrating our portfolio management and research efforts.
Are there any special situations in the California market that investors should
understand?
The California economy has improved dramatically over the past year, brightening
the outlook for virtually all sectors of the municipal market. However, counties
continue to rely heavily on financial aid from the state, and an improvement in
their financial flexibility is not likely this year. In addition, Proposition
218, which requires voter approval for any increase in taxes or fees levied by
local governments, has made it difficult for cities and counties to raise the
revenues needed to improve their financial standings.
<PAGE>
Nuveen California Municipal Value Fund, Inc.
August 31, 1997 Annual Report
California Value
NCA
Performance Overview
Fund Highlights
- ------------------------------------------------------
Inception Date 10/87
- ------------------------------------------------------
Share Price 10 3/16
- ------------------------------------------------------
Net Asset Value $10.09
- ------------------------------------------------------
Current Yield on NAV 5.65%
- ------------------------------------------------------
Taxable Equivalent Yield (Federal Only)(1) 8.19%
- ------------------------------------------------------
Taxable Equivalent Yield (Federal and State)(1) 9.04%
- ------------------------------------------------------
Annualized Total Return (at NAV)
- ------------------------------------------------------
1-Year 7.55%
- ------------------------------------------------------
3-Year 6.53%
- ------------------------------------------------------
Since Inception 7.65%
- ------------------------------------------------------
Taxable Equivalent Total Return(2)
- ------------------------------------------------------
1-Year 11.17%
- ------------------------------------------------------
3-Year 10.34%
- ------------------------------------------------------
Since Inception 11.58%
- ------------------------------------------------------
Morningstar Rating(3)
- ------------------------------------------------------
ART OF: 4 STARS
Pie Charts:
Credit Quality
AAA 59%
AA 15%
A 11%
BBB/NR 15%
Diversification
General Obligation 6%
Escrowed Bonds 25%
Transportation 6%
Water & Sewer 10%
Lease Rental 10%
Housing 13%
Health Care 6%
Other 24%
Dividend History(4)
Sept 1996 0.0500
Oct. 1996 0.0500
Nov. 1996 0.0500
Dec. 1996 0.0500
Jan. 1997 0.0500
Feb. 1997 0.0480
Mar. 1997 0.0480
Apr. 1997 0.0480
May 1997 0.0480
June 1997 0.0480
July 1997 0.0480
Aug. 1997 0.0480
1 Taxable equivalent rate represents the yield on a taxable investment necessary
to equal the after-tax yield of the Nuveen fund. The federal only rate is
based on the current yield and a federal tax rate of 31%. The rate shown for
federal and state highlights the added value of owning shares that are also
exempt from state taxes. It is based on a combined federal and state tax rate
of 37.5%.
2 Taxable equivalent total return is based on the one-year annualized total
return and a combined federal and state income tax rate of 37.5%. It
represents the return on a taxable investment necessary to equal the return of
the Nuveen fund on an after-tax basis.
3 Overall rating for the period ending August 31, 1997, by Morningstar Inc., an
independent mutual fund rating service. The fund was compared among 196
municipal bond funds for the three-year period, 110 funds for the five-year
period and four funds for the 10-year period.
4 The Fund paid shareholders a capital gains distribution in December of $0.0893
per share.
<PAGE>
Nuveen California Performance Plus Municipal Fund, Inc.
August 31, 1997 Annual Report
California Performance Plus
NCP
Performance Overview
Fund Highlights
- ------------------------------------------------------
Inception Date 11/89
- ------------------------------------------------------
Share Price 17 1/4
- ------------------------------------------------------
Net Asset Value $15.67
- ------------------------------------------------------
Current Yield on NAV 5.98%
- ------------------------------------------------------
Taxable Equivalent Yield (Federal Only)(1) 8.67%
- ------------------------------------------------------
Taxable Equivalent Yield (Federal and State)(1) 9.57%
- ------------------------------------------------------
Annualized Total Return (at NAV)
- ------------------------------------------------------
1-Year 8.77%
- ------------------------------------------------------
3-Year 8.00%
- ------------------------------------------------------
Since Inception 8.47%
- ------------------------------------------------------
Taxable Equivalent Total Return(1)
- ------------------------------------------------------
1-Year 12.91%
- ------------------------------------------------------
3-Year 12.15%
- ------------------------------------------------------
Since Inception 12.66%
- ------------------------------------------------------
Morningstar Rating(3)
- ------------------------------------------------------
ART OF: 4 STARS.
Pie Charts:
Credit Quality
AAA 50%
AA 14%
A 18%
BBB/NR 18%
Diversification
General Obligation 4%
Escrowed Bonds 30%
Transportation 8%
Water & Sewer 7%
Housing 10%
Health Care 11%
Other 12%
Pollution Control 5%
Lease Rental 13%
Dividend History(4)
Sept 1996 0.0860
Oct. 1996 0.0860
Nov. 1996 0.0860
Dec. 1996 0.0860
Jan. 1997 0.0860
Feb. 1997 0.0860
Mar. 1997 0.0860
Apr. 1997 0.0860
May 1997 0.0860
June 1997 0.0860
July 1997 0.0860
Aug. 1997 0.0860
1 Taxable equivalent rate represents the yield on a taxable investment necessary
to equal the after-tax yield of the Nuveen fund. The federal only rate is
based on the current yield and a federal tax rate of 31%. The rate shown for
federal and state highlights the added value of owning shares that are also
exempt from state taxes. It is based on a combined federal and state tax rate
of 37.5%.
2 Taxable equivalent total return is based on the one-year annualized total
return and a combined federal and state income tax rate of 37.5%. It
represents the return on a taxable investment necessary to equal the return of
the Nuveen fund on an after-tax basis.
3 Overall rating for the period ending August 31, 1997, by Morningstar Inc., an
independent mutual fund rating service. The fund was compared among 196
municipal bond funds for the three-year period, 110 funds for the five-year
period and four funds for the 10-year period.
4 The Fund paid shareholders a capital gains distribution in December of
$0.0192 per share. Of that distribution, $0.0189 per share was a long-term
gain and $0.0003 was categorized as a short-term gain.
<PAGE>
Nuveen California Municipal Market Opportunity Fund, Inc.
August 31, 1997 Annual Report
California Opportunity
NCO
Performance Overview
Fund Highlights
- ------------------------------------------------------
Inception Date 5/90
- ------------------------------------------------------
Share Price 16 11/16
- ------------------------------------------------------
Net Asset Value $16.04
- ------------------------------------------------------
Current Yield on NAV 6.08%
- ------------------------------------------------------
Taxable Equivalent Yield (Federal Only)(1) 8.81%
- ------------------------------------------------------
Taxable Equivalent Yield (Federal and State)(1) 9.73%
- ------------------------------------------------------
Annualized Total Return (at NAV)
- ------------------------------------------------------
1-Year 9.79%
- ------------------------------------------------------
3-Year 8.49%
- ------------------------------------------------------
Since Inception 8.81%
- ------------------------------------------------------
Taxable Equivalent Total Return(2)
- ------------------------------------------------------
1-Year 13.81%
- ------------------------------------------------------
3-Year 12.58%
- ------------------------------------------------------
Since Inception 12.94%
- ------------------------------------------------------
Morningstar Rating(3)
- ------------------------------------------------------
ART OF: 4 STARS
1 Taxable equivalent rate represents the yield on a taxable investment necessary
to equal the after-tax yield of the Nuveen fund. The federal only rate is
based on the current yield and a federal tax rate of 31%. The rate shown for
federal and state highlights the added value of owning shares that are also
exempt from state taxes. It is based on a combined federal and state tax rate
of 37.5%.
2 Taxable equivalent total return is based on the one-year annualized total
return and a combined federal and state income tax rate of 37.5%. It
represents the return on a taxable investment necessary to equal the return of
the Nuveen fund on an after-tax basis.
3 Overall rating for the period ending August 31, 1997, by Morningstar Inc., an
independent mutual fund rating service. The fund was compared among 196
municipal bond funds for the three-year period, 110 funds for the five-year
period and four funds for the 10-year period.
Pie Charts:
Credit Quality
AAA 54%
AA 11%
A 16%
BBB/NR 19%
Diversification
Escrowed Bonds 39%
Transportation 6%
Water & Sewer 5%
Health Care 17%
Other 18%
Pollution Control 6%
Lease Rental 9%
Dividend History
Sept 1996 0.0845
Oct. 1996 0.0845
Nov. 1996 0.0845
Dec. 1996 0.0845
Jan. 1997 0.0845
Feb. 1997 0.0845
Mar. 1997 0.0845
Apr. 1997 0.0845
May 1997 0.0845
June 1997 0.0845
July 1997 0.0845
Aug. 1997 0.0845
<PAGE>
Nuveen California Investment Quality Municipal Fund, Inc.
August 31, 1997 Annual Report
California Investment Quality
NQC
Performance Overview
Fund Highlights
- ------------------------------------------------------
Inception Date 11/90
- ------------------------------------------------------
Share Price 16 1/2
- ------------------------------------------------------
Net Asset Value $15.70
- ------------------------------------------------------
Current Yield on NAV 6.00%
- ------------------------------------------------------
Taxable Equivalent Yield (Federal Only)(1) 8.70%
- ------------------------------------------------------
Taxable Equivalent Yield (Federal and State)(1) 9.60%
- ------------------------------------------------------
Annualized Total Return (at NAV)
- ------------------------------------------------------
1-Year 8.82%
- ------------------------------------------------------
3-Year 7.96%
- ------------------------------------------------------
Since Inception 8.65%
- ------------------------------------------------------
Taxable Equivalent Total Return(2)
- ------------------------------------------------------
1-Year 12.80%
- ------------------------------------------------------
3-Year 12.05%
- ------------------------------------------------------
Since Inception 12.80%
- ------------------------------------------------------
Morningstar Rating(3)
- ------------------------------------------------------
ART OF: 4 STARS
1 Taxable equivalent rate represents the yield on a taxable investment necessary
to equal the after-tax yield of the Nuveen fund. The federal only rate is
based on the current yield and a federal tax rate of 31%. The rate shown for
federal and state highlights the added value of owning shares that are also
exempt from state taxes. It is based on a combined federal and state tax rate
of 37.5%.
2 Taxable equivalent total return is based on the one-year annualized total
return and a combined federal and state income tax rate of 37.5%. It
represents the return on a taxable investment necessary to equal the return of
the Nuveen fund on an after-tax basis.
3 Overall rating for the period ending August 31, 1997, by Morningstar Inc., an
independent mutual fund rating service. The fund was compared among 196
municipal bond funds for the three-year period, 110 funds for the five-year
period and four funds for the 10-year period.
Pie Charts:
Credit Quality
AAA 50%
AA 10%
A 17%
BBB/NR 23%
Diversification
Escrowed Bonds 39%
Health Care 12%
Lease Rental 9%
Housing 4%
Pollution Control 4%
Utilities 4%
Transportation 6%
Education 3%
Other 13%
General Obligation 6%
Dividend History
Sept 1996 0.0825
Oct. 1996 0.0825
Nov. 1996 0.0825
Dec. 1996 0.0825
Jan. 1997 0.0825
Feb. 1997 0.0825
Mar. 1997 0.0825
Apr. 1997 0.0825
May 1997 0.0825
June 1997 0.0825
July 1997 0.0825
Aug. 1997 0.0825
<PAGE>
Nuveen California Select Quality Municipal Fund, Inc.
August 31, 1997 Annual Report
California Select Quality
NVC
Performance Overview
Fund Highlights
- ------------------------------------------------------
Inception Date 5/91
- ------------------------------------------------------
Share Price 16 7/16
- ------------------------------------------------------
Net Asset Value $15.65
- ------------------------------------------------------
Current Yield on NAV 5.99%
- ------------------------------------------------------
Taxable Equivalent Yield (Federal Only)(1) 8.68%
- ------------------------------------------------------
Taxable Equivalent Yield (Federal and State)(1) 9.58%
- ------------------------------------------------------
Annualized Total Return (at NAV)
- ------------------------------------------------------
1-Year 10.17%
- ------------------------------------------------------
3-Year 8.76%
- ------------------------------------------------------
Since Inception 8.75%
- ------------------------------------------------------
Taxable Equivalent Total Return(2)
- ------------------------------------------------------
1-Year 14.19%
- ------------------------------------------------------
3-Year 12.80%
- ------------------------------------------------------
Since Inception 12.74%
- ------------------------------------------------------
Morningstar Rating3
- ------------------------------------------------------
ART OF: 3 STARS.
Pie Charts:
Credit Quality
AAA 42%
AA 17%
A 37%
BBB/NR 4%
Diversification
Escrowed Bonds 26%
Health Care 11%
Lease Rental 11%
Housing 11%
Pollution Control 5%
Utilities 9%
Transportation 4%
Water & Sewer 4%
Other 16%
General Obligation 3%
Dividend History(4)
Sept 1996 0.0820
Oct. 1996 0.0820
Nov. 1996 0.0820
Dec. 1996 0.0820
Jan. 1997 0.0820
Feb. 1997 0.0820
Mar. 1997 0.0820
Apr. 1997 0.0820
May 1997 0.0820
June 1997 0.0820
July 1997 0.0820
Aug. 1997 0.0820
1 Taxable equivalent rate represents the yield on a taxable investment necessary
to equal the after-tax yield of the Nuveen fund. The federal only rate is
based on the current yield and a federal tax rate of 31%. The rate shown for
federal and state highlights the added value of owning shares that are also
exempt from state taxes. It is based on a combined federal and state tax rate
of 37.5%.
2 Taxable equivalent total return is based on the one-year annualized total
return and a combined federal and state income tax rate of 37.5%. It
represents the return on a taxable investment necessary to equal the return of
the Nuveen fund on an after-tax basis.
3 Overall rating for the period ending August 31, 1997, by Morningstar Inc., an
independent mutual fund rating service. The fund was compared among 196
municipal bond funds for the three-year period, 110 funds for the five-year
period and four funds for the 10-year period.
4 The Fund paid shareholders a capital gains distribution in December of
$0.0562 per share. Of that distribution, $0.0393 per share was a long-term
gain and $0.0169 was categorized as a short-term gain.
<PAGE>
Nuveen California Quality Income Municipal Fund, Inc.
August 31, 1997 Annual Report
California Quality Income
NUC
Performance Overview
Fund Highlights
- ------------------------------------------------------
Inception Date 11/91
- ------------------------------------------------------
Share Price 16 1/4
- ------------------------------------------------------
Net Asset Value $15.86
- ------------------------------------------------------
Current Yield on NAV 6.02%
- ------------------------------------------------------
Taxable Equivalent Yield (Federal Only)(1) 8.72%
- ------------------------------------------------------
Taxable Equivalent Yield (Federal and State)(1) 9.63%
- ------------------------------------------------------
Annualized Total Return (at NAV)
- ------------------------------------------------------
1-Year 10.74%
- ------------------------------------------------------
3-Year 9.38%
- ------------------------------------------------------
Since Inception 8.73%
- ------------------------------------------------------
Taxable Equivalent Total Return(1)
- ------------------------------------------------------
1-Year 14.69%
- ------------------------------------------------------
3-Year 13.36%
- ------------------------------------------------------
Since Inception 12.61%
- ------------------------------------------------------
Morningstar Rating(3)
- ------------------------------------------------------
1 Taxable equivalent rate represents the yield on a taxable investment necessary
to equal the after-tax yield of the Nuveen fund. The federal only rate is
based on the current yield and a federal tax rate of 31%. The rate shown for
federal and state highlights the added value of owning shares that are also
exempt from state taxes. It is based on a combined federal and state tax rate
of 37.5%.
2 Taxable equivalent total return is based on the one-year annualized total
return and a combined federal and state income tax rate of 37.5%. It
represents the return on a taxable investment necessary to equal the return of
the Nuveen fund on an after-tax basis.
3 Overall rating for the period ending August 31, 1997, by Morningstar Inc., an
independent mutual fund rating service. The fund was compared among 196
municipal bond funds for the three-year period, 110 funds for the five-year
period and four funds for the 10-year period.
Pie Charts:
Credit Quality
AAA 44%
AA 10%
A 35%
BBB/NR 11%
Diversification
Escrowed Bonds 26%
Health Care 11%
Lease Rental 14%
Housing 11%
Pollution Control 3%
Utilities 6%
Transportation 3%
Water & Sewer 5%
Other 13%
General Obligation 5%
Education 3%
Dividend History
Sept 1996 0.0800
Oct. 1996 0.0800
Nov. 1996 0.0815
Dec. 1996 0.0815
Jan. 1997 0.0815
Feb. 1997 0.0815
Mar. 1997 0.0815
Apr. 1997 0.0815
May 1997 0.0815
June 1997 0.0815
July 1997 0.0815
Aug. 1997 0.0815
<PAGE>
Financial Section
Contents
14 PORTFOLIO OF INVESTMENTS
45 STATEMENT OF NET ASSETS
47 STATEMENT OF OPERATIONS
49 STATEMENT OF CHANGES IN NET ASSETS
51 NOTES TO FINANCIAL STATEMENTS
58 FINANCIAL HIGHLIGHTS
62 INDEPENDENT AUDITOR'S REPORT
<PAGE>
<TABLE>
Portfolio of Investments
Nuveen California Municipal
Value Fund, Inc. (NCA)
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ESCROWED BONDS - 24.6%***
$ 1,000,000 California Health Facilities Financing Authority, Health Facility 5/00 at 102 Aaa $1,100,360
Revenue Bonds (Health Dimensions, Incorporated), 1990 Series A,
7.375%, 5/01/07 (Pre-refunded to 5/01/00)
1,500,000 California Health Facilities Financing Authority, Revenue Bonds 7/01 at 102 AA- 1,673,220
(St. Joseph Health System), Series 1991 A, 7.000%, 7/01/10
(Pre-refunded to 7/01/01)
Trust Certificates, Trustees of the California State University
to the California State University Institute:
1,405,000 7.000%, 6/01/07 (Pre-refunded to 12/01/00) 12/00 at 101 7/8 Aaa 1,552,567
1,725,000 7.200%, 6/01/10 (Pre-refunded to 12/01/00) 12/00 at 101 7/8 Aaa 1,916,596
2,065,000 County of Contra Costa, California, 1988 Home Mortgage Revenue No Opt. Call Aaa 2,654,888
Bonds (GNMA Mortgage-Backed Securities Program), 8.250%, 6/01/21
(Alternative Minimum Tax)
1,470,000 El Paso de Robles Redevelopment Agency (Paso Robles Redevelopment Project), 7/00 at 102 BBB 1,624,218
1991 Tax Allocation Bonds (Bank Qualified), 7.250%, 7/01/21
(Pre-refunded to 7/01/00)
2,000,000 Redevelopment Agency of the City of Long Beach, California (Los Angeles County, 5/98 at 102 N/R 2,097,460
California), Downtown Redevelopment Project Tax Allocation Refunding Bonds,
Series 1988B, 8.300%, 11/01/10 (Pre-refunded to 5/01/98)
2,500,000 The Community Redevelopment Agency of the City of Los Angeles, California, Central 1/98 at 101 1/2 BBB 2,532,700
Business District Redevelopment Project Tax Allocation Refunding Bonds, Series
1987-G, 6.750%, 7/01/10
8,515,000 Los Angeles Convention and Exhibition Center Authority, California, Certificates of 12/05 at 100 Aaa 11,128,509
Participation, Series 1985, 9.000%, 12/01/20 (Pre-refunded to 12/01/05)
1,100,000 Department of Water and Power of the City of Los Angeles (California), Electric Plant 5/00 at 102 Aa3 1,192,818
Revenue Bonds, Issue of 1990, 7.125%, 5/15/30 (Pre-refunded to 5/15/00)
7,965,000 The City of Los Angeles (California), Wastewater System Revenue Bonds, Series 1987, 11/97 at 102 AAA 8,181,967
8.125%, 11/01/17 (Pre-refunded to 11/01/97)
8,500,000 County of Orange, California, Certificates of Participation, Series 1987 (Civic Center 12/97 at 102 AAA 8,764,180
Parking Facilities Projects), 8.250%, 12/01/18 (Pre-refunded to 12/01/97)
8,565,000 City of Palmdale, California, Single Family Mortgage Revenue Bonds (GNMA Mortgage- No Opt. Call Aaa 2,869,875
Backed Securities Program), Series 1988A, 0.000%, 3/01/17
20,415,000 County of San Bernardino, California, Single Family Mortgage Revenue Bonds (GNMA No Opt. Call Aaa 5,247,472
Mortgage-Backed Securities), 1988 Series A, 0.000%, 9/01/21 (Alternative
Minimum Tax)
Certificates of Participation (1991 Refunding Project), San Diego
Community College District, County of San Diego, California:
1,000,000 8.625%, 12/01/09 (Pre-refunded to 12/01/97) 12/97 at 102 N/R 1,031,890
1,000,000 8.625%, 12/01/09 (Pre-refunded to 12/01/97) 12/97 at 102 AAA 1,032,050
2,000,000 Redevelopment Agency of the City of San Diego, California, Horton Plaza Project, Tax 7/98 at 102 Baa1 2,108,460
Allocation Refunding Bonds, Series 1988, 8.125%, 7/01/08 (Pre-refunded to 7/01/98)
5,050,000 The Regents of the University of California, Refunding Revenue Bonds (Multiple Purpose 9/02 at 102 A 5,712,863
Projects), Series A, 6.875%, 9/01/16 (Pre-refunded to 9/01/02)
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
GENERAL OBLIGATION BONDS - 5.9%
State of California, Various Purpose General Obligation Bonds:
$ 2,000,000 6.500%, 9/01/06 No Opt. Call Aaa $2,283,940
1,885,000 7.000%, 8/01/08 No Opt. Call A1 2,232,462
2,750,000 Campbell Union School District, Santa Clara County, California, 1994 General 8/04 at 102 Aaa 2,962,823
Obligation Bonds, Series A, 6.250%, 8/01/19
City of Industry, California, General Obligation Bonds, Issue of 1995:
1,160,000 5.800%, 7/01/19 7/05 at 101 3/4 Aaa 1,197,340
1,235,000 5.875%, 7/01/24 7/05 at 102 3/8 Aaa 1,285,647
2,500,000 Lucia Mar Unified School District, San Luis Obispo County, California, 8/07 at 102 Aaa 2,472,875
Election of 1997 General Obligation Bonds, Series A, 5.400%, 8/01/22
2,325,000 Temecula Valley Unified School District County of Riverside, California, 9/06 at 102 Aaa 2,441,576
1990 General Obligation Bonds, Series F, 6.000%, 9/01/20
- ----------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE FACILITIES - 5.9%
California Health Facilities Authority, Health Facility Revenue
Bonds (The Whittier Institute For Diabetes and Endocrinology),
Series 1988A:
1,105,000 8.000%, 12/01/00 12/98 at 102 N/R 1,161,841
3,615,000 8.400%, 12/01/08 12/98 at 102 N/R 3,813,608
5,000,000 California Statewide Communities Development Authority, Series A Certificates of 4/03 at 102 A 5,190,800
Participation, Pacific Homes, 6.000%, 4/01/17
1,000,000 City of Arcadia, California, Hospital Revenue Bonds (Methodist Hospital of Southern 11/02 at 102 A 1,077,220
California), Series 1992, 6.500%, 11/15/12
2,425,000 City of Pasadena, Insured Health Facilities Revenue Bonds (Pacific Clinics), 10/97 at 100 A+ 2,428,347
Series 1988A, 8.200%, 6/01/18
1,265,000 San Benito Hospital District, Insured Health Facility Revenue Bonds, Series 1991A, 12/01 at 102 A+ 1,365,239
6.750%, 12/01/21
- ----------------------------------------------------------------------------------------------------------------------------------
HOUSING FACILITIES - 12.9%
1,360,000 California Housing Finance Agency, Home Mortgage Revenue Bonds, 1987 Series A, 8/99 at 100 Aa 1,391,430
8.200%, 8/01/17
1,870,000 California Housing Finance Agency, Home Mortgage Revenue Bonds, 1988 Series B, 8/98 at 102 Aa 1,939,134
8.600%, 8/01/19 (Alternative Minimum Tax)
285,000 California Housing Finance Agency, Home Mortgage Revenue Bonds, 1988 Series G, 8/98 at 102 Aa 294,545
8.150%, 8/01/19 (Alternative Minimum Tax)
930,000 California Housing Finance Agency, Home Mortgage Revenue Bonds, 1988 Series E, 8/98 at 102 Aa 962,866
8.350%, 8/01/19 (Alternative Minimum Tax)
2,090,000 California Housing Finance Agency, Housing Revenue Bonds (Insured), 1988 Series A, 8/98 at 102 Aaa 2,171,615
8.200%, 2/01/20 (Alternative Minimum Tax)
2,200,000 California Housing Finance Agency Home Mortgage Revenue Bonds, 1995 Series M, 2/06 at 102 Aaa 2,268,486
6.050%, 8/01/15 (Alternative Minimum Tax)
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
HOUSING FACILITIES - continued
$ 3,000,000 California Housing Finance Agency, Home Mortgage Revenue Bonds, 1995 Series J, 8/05 at 102 Aaa $3,101,790
6.000%, 8/01/17
2,765,000 California Housing Finance Agency, Home Mortgage Revenue Bonds, 1994 Series F-3, 8/05 at 102 Aaa 2,858,374
6.100%, 8/01/15 (Alternative Minimum Tax)
3,190,000 California Housing Finance Agency Home Mortgage Revenue Bonds, 1997 Series H, 8/07 at 102 Aaa 3,200,910
5.500%, 8/01/17
680,000 California Rural Home Mortgage Finance Authority, Single Family Mortgage Revenue No Opt. Call Aaa 783,809
Bonds (Mortgage-Backed Securities Program), 1993 Issue A, Series 2,
7.950%, 12/01/24 (Alternative Minimum Tax)
8,000,000 Department of Veterans Affairs of the State of California, Home Purchase Revenue Bonds, 8/98 at 102 Aa 8,289,440
1988 Series A, 8.300%, 8/01/19 (Alternative Minimum Tax)
100,000 The City of Los Angeles, Single Family Home Mortgage Revenue Bonds (GNMA and 12/01 at 102 AAA 105,080
FNMA Mortgage-Backed Securities Program), 1991 Issue A, 6.875%, 6/01/25
(Alternative Minimum Tax)
2,635,000 Community Development Agency of the City of Menlo Park, Multifamily Housing 12/97 at 103 Aa 2,729,491
Revenue Bonds (FHA-Insured Mortgage Loan - The Gateway Project), Series 1987A,
8.250%, 12/01/28
2,585,000 Southern California Home Financing Authority, Single Family Mortgage Revenue Bonds No Opt. Call AAA 2,750,466
(GNMA Mortgage-Backed Securities Program), 1988 Issue A, 8.125%, 2/01/21
(Alternative Minimum Tax)
- ----------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL DEVELOPMENT REVENUE - 2.1%
5,000,000 California Pollution Control Financing Authority, Fixed Rate Resource Recovery Revenue 2/01 at 103 A1 5,440,000
Bonds (Waste Management, Inc.), 1991 Composite Series A, 7.150%, 2/01/11
(Alternative Minimum Tax)
- ----------------------------------------------------------------------------------------------------------------------------------
LEASE RENTAL - 9.4%
9,000,000 State Public Works Board of the State of California Lease Revenue Bonds (Department 1/06 at 100 Aaa 8,728,560
of Corrections), 1996 Series A (California Substance Abuse Treatment Facility and
State Prison at Corcoran (Corcoran II), 5.250%, 1/01/21
2,950,000 Certificates of Participation (1991 Financing Project), County of Alameda, California, 9/06 at 102 Aaa 3,113,607
Alameda County Public Facilities Corporation, 6.000%, 9/01/21
4,000,000 Chino Unified School District, Certificates of Participation (1995 Master Lease 9/05 at 102 Aaa 4,186,800
Program), 6.000%, 9/01/20
Los Angeles Convention and Exhibition Center Authority, Lease
Revenue Bonds, 1993 Refunding Series A, the City of Los Angeles
(California):
2,500,000 5.375%, 8/15/18 8/03 at 102 Aaa 2,455,250
2,000,000 5.125%, 8/15/21 8/03 at 102 Aaa 1,900,740
1,750,000 County of Riverside Asset Leasing Corporation Leasehold Revenue Bonds, 1997 Series B 6/12 at 101 Aaa 1,805,685
(County of Riverside Hospital Project), 5.700%, 6/01/16
1,700,000 Shafter Joint Powers Financing Authority Lease Revenue Bonds 1997 Series A (Community 1/07 at 101 BBB+ 1,767,541
Correctional Facility Acquisition Project), 5.950%, 1/01/11
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OTHER REVENUE - 18.4%
$ 2,015,000 ABAG Finance Authority for Nonprofit Corporations, 1991 Certificates of Participation 7/01 at 102 Aa2 $2,199,776
(United Way of Santa Clara County Project), 7.200%, 7/01/11
Brea Public Financing Authority, Revenue Bonds, 1988 Series A (Agency Loan):
2,885,000 8.100%, 10/01/14 10/97 at 101 1/2 N/R 2,938,748
4,200,000 8.100%, 10/01/14 10/97 at 102 N/R 4,278,246
Redevelopment Agency of the City of Durarte, California,
Huntington Drive Phase II Redevelopment Project Area, 1988 Tax
Allocation Bonds:
1,170,000 7.900%, 10/01/02 10/97 at 102 N/R 1,196,454
3,745,000 8.000%, 10/01/10 10/97 at 102 N/R 3,828,326
2,000,000 Redevelopment Agency of the City of Duarte, Amended Davis Addition Project Area, 1997 9/07 at 102 N/R 2,059,880
Tax Allocation Refunding Bonds, 6.700%, 9/01/14
935,000 Inglewood Public Finance Authority, 1992 Revenue Bonds, Series C (In-Town, Manchester 5/02 at 102 A- 1,003,704
and North Inglewood Industrial Park Redevelopment Projects - Housing Set-Aside
Loans), 7.000%, 5/01/22
945,000 Inglewood Public Finance Authority,1992 Revenue Bonds, Series B (In-Town, Manchester- 5/02 at 102 Baa 1,017,680
Prairie and North Inglewood Industrial Park Redevelopment Project Redevelopment
Loans), 7.000%, 5/01/22
2,500,000 The Community Redevelopment Agency of the City of Los Angeles, California, Central 1/98 at 101 1/2 BBB 2,547,650
Business District Redevelopment Project Tax Allocation Refunding Bonds, Series G,
6.750%, 7/01/10
1,000,000 Los Angeles County Metropolitan Transportation Authority (California), Proposition C 7/05 at 102 Aaa 1,003,690
Sales Tax Revenue Bonds, Second Senior Bonds, Series 1995-A, 5.500%, 7/01/17
1,000,000 Los Angeles County Metropolitan Transportation Authority (California), Sales Tax 7/06 at 101 Aaa 1,031,670
Revenue Refunding Bonds, Proposition A-2nd Tier Series 1996, 5.750%, 7/01/18
3,300,000 Orange County Development Agency, Santa Ana Heights Project Area, 1993 Tax 9/03 at 102 Baa 3,393,390
Allocation Revenue Bonds, 6.125%, 9/01/23
5,000,000 Palm Desert Financing Authority, Tax Allocation Refunding Revenue Bonds (Project Area 4/02 at 100 Aaa 5,024,750
No. 1, As Amended), Series 1997, 5.625%, 4/01/23
1,500,000 Sacramento Area Flood Control Agency, North Area Local Project, Capital Assessment 10/05 at 102 Aaa 1,469,055
District No. 2 Bonds, Series 1995, 5.375%, 10/01/25
6,000,000 Public Utilities Commission of the City and County of San Francisco, California, San 11/97 at 102 Aa 6,158,700
Francisco Water Revenue Bonds, Refunding Series of 1987, 8.000%, 11/01/11
8,000,000 Redevelopment Agency of the City of San Jose, Merged Area Redevelopment Project, 2/04 at 102 Aaa 7,521,680
Tax Allocation Bonds, Series 1993, 5.000%, 8/01/20
- ----------------------------------------------------------------------------------------------------------------------------------
POLLUTION CONTROL FACILITIES - 0.6%
1,500,000 California Pollution Control Financing Authority, Pollution Control Revenue Bonds (Pacific 12/97 at 102 A 1,545,420
Gas and Electric Company), 1987 Series B, 8.875%, 1/01/10 (Alternative Minimum Tax)
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
TRANSPORTATION - 5.7%
$ 3,000,000 Port of Oakland, California, Revenue Bonds, 1997 Series G, 5.375%, 11/01/25 11/07 at 102 Aaa $2,904,630
(Alternative Minimum Tax)
5,490,000 Airports Commission City and County of San Francisco, California, San Francisco 5/06 at 102 Aaa 5,464,636
International Airport, Second Series Revenue Bonds, Issue 10, 5.625%, 5/01/21
(Alternative Minimum Tax)
5,925,000 Airports Commission, City and County of San Francisco, California, San Francisco 5/05 at 101 Aaa 6,199,150
International Airport, Second Series Revenue Bonds, Issue 11 (Noise Insulation
Program), 6.200%, 5/01/19 (Alternative Minimum Tax)
- ----------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 1.7%
1,600,000 Southern California Public Power Authority, Mead-Phoenix Project Revenue Bonds, 7/04 at 102 Aaa 1,465,488
1994 Series A, 4.750%, 7/01/16
3,000,000 Southern California Public Power Authority, Transmission Project Revenue Bonds, 7/03 at 100 Aaa 2,809,470
1993 Subordinate Refunding Series (Southern Transmission Project), 5.000%, 7/01/22
- ----------------------------------------------------------------------------------------------------------------------------------
WATER/SEWER FACILITIES - 9.9%
3,000,000 State of California, Department of Water Resources, Central Valley Project, 12/08 at 101 AA 2,839,350
5.000%, 12/01/22
2,015,000 Azusa Public Financing Authority Water System, 5.000%, 7/01/23 7/03 at 102 Aaa 1,884,650
5,000,000 Castaic Lake Water Agency (California), Refunding Revenue Certificates of 8/04 at 102 Aaa 5,377,050
Participation (Water System Improvement Projects), Series 1994A 6.300%, 8/01/20
2,000,000 Contra Costa Water Authority (Contra Costa County, California), Water Treatment 10/02 at 102 Aaa 2,032,440
Revenue Refunding Bonds, 1993 Series A, 5.750%, 10/01/20
4,000,000 Modesto Irrigation District Financing Authority, Domestic Water Project Revenue Bonds, 9/05 at 102 Aaa 4,085,400
Series 1995C, 5.750%, 9/01/22
7,750,000 Sacramento County Sanitation Districts Financing Authority, 1993 Revenue Bonds, 12/03 at 102 Aa 6,966,701
4.750%, 12/01/23
1,925,000 San Jacinto Financing Authority, Revenue Bonds, Series 1997 (Water Improvement 4/07 at 102 Aaa 1,920,130
Project), 5.500%, 10/01/18
- -----------------------------------------------------------------------------------------------------------------------------------
$259,030,000 Total Investments - (cost $231,008,678) - 97.1% 246,749,344
============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.9% 7,418,962
----------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $254,168,306
======================================================================================================================
<FN>
* Optional Call Provisions (not covered by the report of independent
auditors): 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.
** Ratings (not covered by the report of independent auditors):
Using the higher of Standard & Poor's or Moody's rating.
***Securities are backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities, which ensures the timely
payment of principal and interest. Securities are normally considered to be
equivalent to AAA rated securities.
N/R - Investment is not rated.
</FN>
See accompanying notes to financial statements
</TABLE>
<PAGE>
<TABLE>
Portfolio of Investments
Nuveen California Performance Plus
Municipal Fund, Inc. (NCP)
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
EDUCATIONAL FACILITIES - 0.5%
$ 1,500,000 California Educational Facilities Authority Revenue Bonds (University 10/06 at 102 Aaa $1,575,555
of San Francisco), Series 1996, 6.000%, 10/01/26
- ----------------------------------------------------------------------------------------------------------------------------------
ESCROWED BONDS - 29.0%***
2,000,000 California Educational Facilities Authority, Revenue Bonds (St. Mary's College of 10/00 at 102 Aaa 2,232,760
California Project), Series 1990, 7.500%, 10/01/20 (Pre-refunded to 10/01/00)
6,500,000 California Health Facilities Financing Authority, Insured Hospital Revenue Bonds 7/00 at 102 Aaa 7,118,475
(Children's Hospital - San Diego), Series 1990, 7.000%, 7/01/13 (Pre-refunded
to 7/01/00)
California Health Facilities Financing Authority, Health Facility
Revenue Bonds (Health Dimensions, Incorporated), 1990 Series A:
4,175,000 7.250%, 5/01/03 (Pre-refunded to 5/01/00) 5/00 at 102 Aaa 4,580,935
5,000,000 7.500%, 5/01/15 (Pre-refunded to 5/01/00) 5/00 at 102 Aaa 5,517,450
4,800,000 California Health Facilities Financing Authority, Health Facility Revenue Bonds 10/00 at 102 N/R 5,337,840
(Sisters of Providence), Series 1990, 7.500%, 10/01/10 (Pre-refunded to 10/01/00)
Trust Certificates, Trustees of the California State University to the California State
University Institute:
1,500,000 7.100%, 6/01/08 (Pre-refunded to 12/01/00) 12/00 at 101 7/8 Aaa 1,662,075
1,610,000 7.150%, 6/01/09 (Pre-refunded to 12/01/00) 12/00 at 101 7/8 Aaa 1,786,392
6,080,000 City of Anaheim, California, Certificates of Participation, Anaheim Memorial Hospital 5/00 at 102 Aaa 6,661,552
Association, 7.125%, 5/15/13 (Pre-refunded to 5/15/00)
4,000,000 Contra Costa Water District (Contra Costa County, California), Water Revenue Bonds, 10/00 at 102 N/R 4,367,040
Series C, 6.750%, 10/01/20 (Pre-refunded to 10/01/00)
4,000,000 County of Contra Costa, California, 1988 Home Mortgage Revenue Bonds (GNMA No Opt. Call Aaa 5,142,640
Mortgage-Backed Securities Program), 8.250%, 6/01/21 (Alternative Minimum Tax)
3,000,000 Hospital Revenue Certificates of Participation (Desert Hospital Corporation Project), 7/00 at 102 AAA 3,374,490
Series 1990, 8.100%, 7/01/20 (Pre-refunded to 7/01/00)
10,000,000 East Bay Municipal Utility District (Alameda and Contra Costa Counties, California), 6/00 at 102 Aaa 11,065,000
Water System Subordinated Revenue Bonds, Series 1990, 7.500%, 6/01/18
(Pre-refunded to 6/01/00)
2,000,000 LaQuinta Redevelopment Agency, LaQuinta Redevelopment Project, Tax Allocation 9/00 at 102 Aaa 2,277,680
Refunding Bonds, Series 1990, 8.400%, 9/01/12 (Pre-refunded to 9/01/00)
5,600,000 City of Los Angeles, California, Wastewater System Revenue Bonds, Series 1988, 8/98 at 102 Aaa 5,902,064
7.625%, 8/01/14 (Pre-refunded to 8/01/98)
2,285,000 Rancho Cucamonga Redevelopment Agency (San Bernardino County, California), Rancho 9/99 at 102 Aaa 2,466,977
Redevelopment Project, 1990 Tax Allocation Bonds, 7.125%, 9/01/19 (Pre-refunded
to 9/01/99)
2,000,000 Redevelopment Agency of the City of San Diego, California, Marina Redevelopment 12/97 at 101 1/2 Aaa 2,054,680
Project, Tax Allocation Refunding Bonds, Series 1987, 8.750%, 12/01/08
(Pre-refunded to 12/01/97)
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ESCROWED BONDS - continued
$ 3,500,000 Redevelopment Agency of the City of San Diego, California, Columbia Redevelopment 12/97 at 101 1/2 Aaa $3,595,690
Project, Tax Allocation Refunding Bonds, Series 1987, 8.750%, 12/01/08
(Pre-refunded to 12/01/97)
3,500,000 City and County of San Francisco, General Purpose Sewer Revenue Bonds, 10/97 at 101 1/2 Aaa 3,562,930
Series 1988A, 7.250%, 10/01/15 (Pre-refunded to 10/01/97)
3,975,000 The Regents of the University of California, Hospital Revenue Bonds (UCLA Medical 12/98 at 102 A+ 4,214,653
Center), Series 1990, 7.300%, 12/01/20 (Pre-refunded to 12/01/98)
- ----------------------------------------------------------------------------------------------------------------------------------
GENERAL OBLIGATION BONDS - 4.2%
6,000,000 State of California, Various Purpose General Obligation Bonds, 5.750%, 3/01/14 3/05 at 101 A1 6,251,280
1,135,000 Jefferson Union High School District (County of San Mateo, California), General 8/05 at 102 Aaa 1,147,826
Obligation Bonds, Election 1995, Series B, 5.650%, 8/01/27
3,415,000 City of Oakland, California, Special Refunding Revenue Bonds (Pension Financing), 8/98 at 102 Aaa 3,585,784
1988 Series A, 7.600%, 8/01/21
1,000,000 Pomona Unified School District, General Obligation Refunding Bonds, Series 1997-A, 8/11 at 103 Aaa 1,103,860
6.150%, 8/01/15
- ----------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE FACILITIES - 11.0%
5,500,000 California Health Facilities Financing Authority, Health Facility Revenue Bonds (Pomona 1/00 at 102 A- 6,282,100
Valley Hospital Medical Center), 1989 Series A, 9.750%, 1/01/19
2,000,000 California Health Facilities Financing Authority, Kaiser Permanente, Revenue Bonds, 10/99 at 102 AA 2,147,460
1989 Series A, 7.000%, 10/01/08
2,780,000 California Health Facilities Financing Authority, Insured Health Facility 5/03 at 102 A+ 2,881,637
Revenue Refunding Bonds (Valley Memorial Hospital), 1993 Series A, 6.000%, 5/01/17
3,000,000 California Statewide Communities Development Authority (Triad Healthcare), Revenue No Opt. Call A+ 3,228,000
Refunding Series 1992, Certificates of Participation, 6.250%, 8/01/06
7,520,000 Antelope Valley Hospital District, Series 1989 Certificates of Participation, 1/98 at 102 A 7,732,891
7.350%, 1/01/20
Central Joint Powers Health Financing Authority, Certificates of
Participation, Series 1993 (Community Hospitals of Central
California):
2,500,000 5.250%, 2/01/13 2/03 at 102 Baa1 2,392,875
4,720,000 5.000%, 2/01/23 2/03 at 100 Baa1 4,166,769
2,500,000 Sierra View Local Hospital District, Insured Health Facility Revenue Bonds, 3/02 at 102 A+ 2,637,000
Series 1992, 6.400%, 3/01/22
- ----------------------------------------------------------------------------------------------------------------------------------
HOUSING FACILITIES - 9.6%
3,690,000 California Housing Finance Agency, Home Mortgage Revenue Bonds, 1990 Series A, 2/00 at 102 Aa 3,877,821
7.700%, 8/01/30 (Alternative Minimum Tax)
3,365,000 California Housing Finance Agency, Home Mortgage Revenue Bonds, 1995 Series B, 2/05 at 102 Aa 3,609,198
7.125%, 2/01/26 (Alternative Minimum Tax)
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
HOUSING FACILITIES - continued
$ 7,900,000 Department of Veterans Affairs of the State of California, Home Purchase Revenue 8/98 at 102 Aa $8,185,822
Bonds, 1988 Series A, 8.300%, 8/01/19 (Alternative Minimum Tax)
3,915,000 The City of Los Angeles Multifamily Housing Revenue Bonds (GNMA Collateralized - 9/07 at 102 AAA 4,008,686
Ridgecroft Apartments Project), Series 1997E, 6.250%, 9/20/39 (Alternative
Minimum Tax)
2,345,000 Community Development Commission of the County of Los Angeles, Mortgage Revenue 5/03 at 100 Aaa 2,415,162
Refunding Bonds, Series 1993, FHAInsured Mortgage Loan - Los Tomas Apartments,
Section 8 Assisted Project, 6.500%, 7/15/23
2,500,000 County of San Bernardino (California), Single Family Home Mortgage Revenue Bonds 5/07 at 103 AAA 2,584,075
(Mortgage-Backed Securities Program), 1997 Series A, 6.200%, 5/01/21
2,835,000 Southern California Home Financing Authority, Single Family Mortgage Revenue Bonds 10/00 at 102 AAA 2,992,059
(GNMA Mortgage-Backed Securities Program), 1990 Issue A, 7.625%, 10/01/23
(Alternative Minimum Tax)
- ----------------------------------------------------------------------------------------------------------------------------------
LEASE RENTAL - 12.6%
1,850,000 City of Coalinga, California, Certificates of Participation (1989 Coalinga 4/00 at 102 BBB+ 1,947,218
Return to Custody Facility), 7.000%, 4/01/10
3,000,000 Folsom Public Financing Authority (Sacramento County, California), 1990 Local Agency 10/00 at 102 BBB+ 3,211,980
Revenue Bonds, Series A, 7.250%, 10/01/10
Fresno Unified School District, Fresno County, California,
Certificates of Participation for Measure A Capital Projects,
Series of 1992B for Project Phase IX:
1,700,000 6.600%, 5/01/08 5/00 at 102 A2 1,791,647
1,765,000 6.700%, 5/01/09 5/00 at 102 A2 1,859,957
2,500,000 Fruitvale School District, Certificates of Participation (1990 Improvement Project), 6/00 at 102 Baa 2,690,300
7.875%, 6/01/04
1,700,000 Lancaster Housing Authority, Lease Revenue Bonds (Brierwood Mobilehome Park Project), 4/99 at 102 BBB+ 1,754,927
Issue of 1994, 7.200%, 4/01/24
Certificates of Participation (Western Nevada County Solid Waste
Management System - 1991 Project), County of Nevada, California:
2,445,000 7.250%, 6/01/08 6/01 at 102 Baa 2,584,072
2,500,000 7.500%, 6/01/21 6/01 at 102 Baa 2,647,325
8,800,000 County of Orange, California, 1996 Recovery Certificates of Participation, Series A, 7/06 at 102 Aaa 9,235,600
6.000%, 7/01/26
6,470,000 City of San Leandro, California, San Leandro Public Financing Authority, 6/03 at 102 A 6,642,943
Certificates of Participation (1993 Seismic Retrofit Financing Project),
5.950%, 6/01/23
1,750,000 Taft Public Financing Authority Lease Revenue Bonds 1997 Series A (Community 1/07 at 101 BBB+ 1,819,528
Correctional Facility Acquisition Project), 5.950%, 1/01/11
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OTHER REVENUE - 8.4%
$ 2,000,000 Alameda Public Financing Authority 1997 Revenue Bonds (Marina Village Assessment 3/98 at 102 N/R $2,044,320
District Bond Refinancing), 6.375%, 9/02/14
2,000,000 Cudahy Redevelopment Agency, Cudahy Redevelopment Project, Tax Allocation 9/03 at 102 BBB 2,112,660
Refunding Bonds, Series 1994A, 6.700%, 9/01/24
3,000,000 Fontana Public Financing Authority (San Bernardino County, California), Tax Allocation 9/00 at 102 BB+ 3,168,060
Revenue Bonds (North Fontana Redevelopment Project), 1990 Series A,
7.250%, 9/01/20
5,000,000 Los Angeles County Metropolitan Transportation Authority (California), Proposition A, 7/03 at 100 Aaa 4,688,700
Sales Tax Revenue Refunding Bonds, Series 1993-A, 5.000%, 7/01/21
3,170,000 Pleasanton Joint Powers Financing Authority, Reassessment Revenue Bonds, 1993 Series 9/03 at 102 Baa 3,341,370
A, 6.000%, 9/02/05
2,215,000 Rancho Cucamonga Redevelopment Agency (San Bernardino County, California), Rancho 9/99 at 102 Aaa 2,373,793
Redevelopment Project, 1990 Tax Allocation Bonds, 7.125%, 9/01/19
4,700,000 Stanislaus County Waste-to-Energy Financing Agency, Solid Waste Facility Refunding 1/00 at 102 BBB+ 5,044,087
Revenue Certificates (Ogden Martin System of Stanislaus, Inc. Project), Series 1990,
7.625%, 1/01/10
1,415,000 Redevelopment Agency of the City of Suisun City, Suisun City Redevelopment Project, 10/03 at 102 Aaa 1,458,044
1993 Tax Allocation Refunding Bonds (County of Solano, California), 5.900%, 10/01/23
- ----------------------------------------------------------------------------------------------------------------------------------
POLLUTION CONTROL FACILITIES - 4.7%
12,600,000 City of Chula Vista, Industrial Development Revenue Bonds (San Diego Gas and Electric 12/02 at 102 Aaa 13,508,838
Company), 1992 Series A, 6.400%, 12/01/27 (Alternative Minimum Tax)
- ----------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 8.2%
3,000,000 Foothill/Eastern Transportation Corridor Agency, Toll Road Revenue Bonds Series 1995A, 1/05 at 102 Baa 3,068,550
6.000%, 1/01/34
1,320,000 County of Orange, California, Airport Revenue Refunding Bonds, Series 1997, 7/07 at 102 Aaa 1,356,683
5.625%, 7/01/12 (Alternative Minimum Tax)
8,000,000 Port of Oakland, California, Revenue Bonds, 1990 Series D, 8.000%, 11/01/00 No Opt. Call Aaa 8,913,520
4,630,000 County of Sacramento, Airport System PFC and Subordinated Revenue Bonds, Series 7/06 at 102 Aaa 4,886,409
1996D, 6.000%, 7/01/16
5,000,000 Airports Commission, City and County of San Francisco, California, San Francisco 5/05 at 101 Aaa 5,258,950
International Airport, Second Series Revenue Bonds, Issue 11 (Noise Insulation
Program), 6.250%, 5/01/26 (Alternative Minimum Tax)
- ----------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 2.4%
2,500,000 Department of Water and Power of the City of Los Angeles, California, Electric Plant 5/98 at 102 Aa3 2,611,825
Revenue Bonds, Issue of 1988, 7.900%, 5/01/28
4,545,000 Department of Water and Power of the City of Los Angeles (California), Electric Plant 10/03 at 102 Aa3 4,156,630
Revenue Bonds, Second Issue of 1993, 5.000%, 10/15/33
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
WATER/SEWER FACILITIES - 6.7%
$ 3,000,000 Department of Water and Power of the City of Los Angeles, Water Works Refunding 5/03 at 102 Aa $2,683,980
Revenue Bonds, Second Issue of 1993, 4.500%, 5/15/13
4,270,000 Department of Water and Power of the City of Los Angeles, Water Works Refunding 5/03 at 102 Aa 3,750,469
Revenue Bonds, Second Issue of 1993, 4.500%, 5/15/18
5,000,000 The City of Los Angeles Wastewater System Revenue Bonds, Refunding Series 1991-C, 6/99 at 102 A1 5,328,400
7.100%, 6/01/18
5,000,000 Revenue Certificates of Participation, Series 1993A, Orange County Water District, 8/03 at 100 Aa 4,691,100
5.000%, 8/15/18
2,650,000 San Diego County Water Authority, Water Revenue Certificates of Participation, Series 5/01 at 102 Aa 2,853,784
1991A, 6.375%, 5/01/06
- -----------------------------------------------------------------------------------------------------------------------------------
$265,140,000 Total Investments - (cost $258,636,701) - 97.3% 279,212,852
============-----------------------------------------------------------------------------------------------------------------------
Temporary Investments in Short-Term Municipal Securities - 0.2%
- -----------------------------------------------------------------------------------------------------------------------------------
$ 500,000 City of Santa Ana, Multi-Modal Interchangeable Rate Health Facility Revenue Bonds A-1 500,000
(Town and Country Manor Project), Series 1990, Variable Rate Demand Bonds,
3.500%, 10/01/20+
----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.5% 7,223,403
----------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $286,936,255
======================================================================================================================
<FN>
* Optional Call Provisions (not covered by the report of independent
auditors): 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.
** Ratings (not covered by the report of independent auditors):
Using the higher of Standard & Poor's or Moody's rating.
***Securities are backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities, which ensures the timely
payment of principal and interest. Securities are normally considered to be
equivalent to AAA rated securities.
N/R - Investment is not rated.
+ The security has a maturity of more than one year, but has variable rate
and demand features which qualify it as a short-term security. The rate
disclosed is that currently in effect. This rate changes periodically based on
market conditions or a specified market index.
</FN>
See accompanying notes to financial statements
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
EDUCATIONAL FACILITIES - 0.6%
$ 1,000,000 California Educational Facilities Authority Revenue Bonds (University of 10/06 at 102 Aaa $1,050,370
San Francisco), Series 1996, 6.000%, 10/01/26
- ----------------------------------------------------------------------------------------------------------------------------------
ESCROWED BONDS - 38.4%***
1,900,000 California Health Facilities Financing Authority, Insured Hospital Revenue Bonds 10/00 at 102 Aaa 2,119,944
(Children's Hospital of San Francisco), 1990 Series A, 7.500%, 10/01/20
(Pre-refunded to 10/01/00)
5,000,000 California Health Facilities Financing Authority, Health Facility Revenue Bonds (Health 5/00 at 102 Aaa 5,517,450
Dimensions, Incorporated), 1990 Series A, 7.500%, 5/01/15 (Pre-refunded to 5/01/00)
6,500,000 California State Department of Water Resources, Central Valley Project, 6/99 at 101 1/2 Aaa 6,941,220
Water System Revenue Bonds, Series G, 7.125%, 12/01/24
(Pre-refunded to 6/01/99)
5,000,000 Certificates of Participation (Water System Improvement Projects), 8/00 at 102 Aaa 5,506,250
Series 1990, Castaic Lake Water Agency, California, 7.125%, 8/01/16
(Pre-refunded to 8/01/00)
3,300,000 Contra Costa Water Authority (Contra Costa County, California), Water Treatment 10/00 at 102 N/R 3,614,655
Revenue Bonds, 1990 Series A, 6.875%, 10/01/20 (Pre-refunded to 10/01/00)
5,000,000 Hospital Revenue Certificates of Participation (Desert Hospital Corporation Project), 7/00 at 102 AAA 5,624,150
Series 1990, 8.100%, 7/01/20 (Pre-refunded to 7/01/00)
5,000,000 The City of Los Angeles (California), Los Angeles Convention and Exhibition Center 8/00 at 102 Aaa 5,494,200
Certificates of Participation, 1990 Series, 7.000%, 8/15/21
(Pre-refunded to 8/15/00)
5,890,000 Mt. Diablo Unified School District, Community Facilities District No. 1, 8/00 at 102 Aaa 6,474,288
Special Tax Bonds, Series 1990 (Contra Costa County, California),
7.050%, 8/01/20 (Pre-refunded to 8/01/00)
4,000,000 Certificates of Participation (1990 Project A), Orange County Water District, 8/00 at 102 Aaa 4,395,360
7.000%, 8/15/15 (Pre-refunded to 8/15/00)
Ponoma Public Financing Authority, California 1990 Lease Purchase Revenue Bonds,
Series J:
4,035,000 7.700%, 10/01/07 (Pre-refunded to 10/01/00) 10/00 at 102 A- 4,521,540
2,000,000 7.875%, 10/01/15 (Pre-refunded to 10/01/00) 10/00 at 102 A- 2,251,200
4,000,000 City of Pomona, California, Single Family Mortgage Revenue Refunding Bonds (GNMA No Opt. Call Aaa 5,137,680
and FHLMC Mortgage-Backed Securities), Series 1990B, 7.500%, 8/01/23
7,000,000 Redevelopment Agency of The City of San Diego, California, Marina Redevelopment 12/97 at 101 1/2 Aaa 7,191,380
Project, Tax Allocation Refunding Bonds, Series 1987, 8.750%, 12/01/08
(Pre-refunded to 12/01/97)
5,000,000 The Regents of the University of California, Revenue Bonds (1990 Seismic 9/98 at 102 A 5,266,450
Safety Projects), 7.300%, 9/01/20 (Pre-refunded to 9/01/98)
- ----------------------------------------------------------------------------------------------------------------------------------
GENERAL OBLIGATION BONDS - 0.6%
1,000,000 Pomona Unified School District, General Obligation Refunding Bonds, Series 1997-A, 8/11 at 103 Aaa 1,103,860
6.150%, 8/01/15
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
HEALTH CARE FACILITIES - 16.7%
$ 6,250,000 California Health Facilities Financing Authority, Kaiser Permanente, Revenue Bonds, 10/99 at 102 AA $6,676,938
1989 Series A, 7.000%, 10/01/18
2,000,000 California Health Facilities Financing Authority, Insured Health Facility Revenue 5/03 at 102 A+ 2,073,120
Refunding Bonds (Valley Memorial Hospital), 1993 Series A, 6.000%, 5/01/17
1,000,000 California Health Facilities Financing Authority, Kaiser Permanente Refunding Revenue 3/01 at 102 AA 1,049,220
Bonds, 1991 Series A, 6.250%, 3/01/21
3,000,000 California Statewide Communities Development Authority (Triad Healthcare), Revenue No Opt. Call A+ 3,228,000
Refunding Series 1992, Certificates of Participation, 6.250%, 8/01/06
6,800,000 Central Joint Powers Health Financing Authority, Certificates of 2/03 at 100 Baa1 6,002,972
Participation, Series 1993 (Community Hospitals of Central California),
5.000%, 2/01/23
City of Loma Linda California, Hospital Revenue Bonds (Loma Linda University
Medical Center Project), Series 1993-A
5,970,000 5.750%, 12/01/03 No Opt. Call BBB 6,091,788
3,000,000 6.500%, 12/01/18 12/03 at 102 BBB 3,144,090
2,000,000 Sierra View Local Hospital District, Insured Health Facility Revenue Bonds, 3/02 at 102 A+ 2,109,600
Series 1992, 6.400%, 3/01/22
- ----------------------------------------------------------------------------------------------------------------------------------
HOUSING FACILITIES - 0.7%
1,230,000 California Housing Finance Agency, Home Mortgage Revenue Bonds, 1988 Series C, 8/98 at 102 Aa 1,271,033
8.300%, 8/01/19 (Alternative Minimum Tax)
- ----------------------------------------------------------------------------------------------------------------------------------
LEASE RENTAL - 9.0%
2,100,000 Inland Empire Solid Waste Financing Authority Revenue Bonds, 1996 Series B (Landfill No Opt. Call Aaa 2,313,129
Improvement Financing Project), 6.250%, 8/01/11 (Alternative Minimum Tax)
1,500,000 Lancaster Housing Authority, Lease Revenue Bonds (Brierwood Mobilehome Park 4/99 at 102 BBB+ 1,548,465
Project), Issue of 1994, 7.200%, 4/01/24
2,000,000 Certificates of Participation, County of Mendocino to the Mendocino County Public 8/03 at 102 A 2,061,120
Facilities Corporation, 6.000%, 8/15/23
1,000,000 Menifee Union School District (Riverside County, California), Certificates 9/06 at 102 Aaa 1,060,420
of Participation (1996 School Project), 6.125%, 9/01/24
Certificates of Participation (Western Nevada County Solid Waste
Management System-- 1991 Project), County of Nevada, California:
2,500,000 7.250%, 6/01/08 6/01 at 102 Baa 2,642,200
2,000,000 7.500%, 6/01/21 6/01 at 102 Baa 2,117,860
4,700,000 San Bernardino County, California, Certificates of Participation, Series 1995 (Medical 8/05 at 102 Aaa 4,661,977
Center Financing Project), 5.500%, 8/01/22
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OTHER REVENUE - 15.6%
$ 5,000,000 Fontana Public Financing Authority (San Bernardino County, California), Tax Allocation 9/00 at 102 BB+ $5,280,100
Revenue Bonds (North Fontana Redevelopment Project), 1990 Series A, 7.250%, 9/01/20
2,045,000 Inglewood Redevelopment Agency (City of Inglewood, Los Angeles County, California), No Opt. Call BBB 2,086,738
Century Redevelopment Project, 1993 Tax Allocation Bonds, Series A, 5.900%, 7/01/03
1,000,000 City of Ontario, Community Facilities District No. 5 (Freeway Interchange Project), 9/06 at 102 N/R 996,080
Special Tax Bonds, Series 1997, 6.375%, 9/01/17
10,900,000 Ontario Redevelopment Financing Authority (San Bernardino County, California) 1995 No Opt. Call Aaa 14,138,826
Revenue Refunding Bonds (Ontario Redevelopment Project No. 1), 7.400%, 8/01/25
1,100,000 Redevelopment Agency of the City of Suisun City, Suisun City Redevelopment Project, 10/03 at 102 Aaa 1,133,462
1993 Tax Allocation Refunding Bonds (County of Solano, California), 5.900%, 10/01/23
4,620,000 Vista Joint Powers Financing Authority, 1993 Series B Lease Revenue Bonds (Hacienda 9/00 at 101 A- 4,713,555
Drive and Buena Vista Creek), 6.100%, 9/01/20
- ----------------------------------------------------------------------------------------------------------------------------------
POLLUTION CONTROL FACILITIES - 6.4%
3,000,000 California Pollution Control Financing Authority, Pollution Control Revenue 12/97 at 102 A 3,089,910
Bonds (Pacific Gas and Electric Company), 1987 Series B, 8.750%, 1/01/07
(Alternative Minimum Tax)
8,000,000 City of Chula Vista, Industrial Development Revenue Bonds, (San Diego 12/02 at 102 Aaa 8,577,040
Gas and Electric Company) 1992 Series A, 6.400%, 12/01/27
(Alternative Minimum Tax)
- ----------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 5.7%
1,000,000 Foothill/Eastern Transportation Corridor Agency, Toll Road Revenue Bonds Series 1995A, 1/05 at 102 Baa 1,022,850
6.000%, 1/01/34
4,000,000 Harbor Department of the City of Los Angeles, Revenue Bonds, Issue of 1995 Series B, 8/02 at 102 Aa 4,326,640
6.625%, 8/01/19 (Alternative Minimum Tax)
5,000,000 County of Sacramento, Airport System Revenue Bonds, Series 1996, 5.900%, 7/01/24 7/06 at 102 Aaa 5,124,300
(Alternative Minimum Tax)
- ----------------------------------------------------------------------------------------------------------------------------------
WATER/SEWER FACILITIES - 4.9%
5,000,000 Department of Water and Power of the City of Los Angeles, California, Water Works, 2/99 at 102 Aa 5,305,150
Revenue Bonds, Issue of 1989, 7.200%, 2/15/19
4,000,000 The City of Los Angeles, California, Wastewater System Revenue Bonds, Series 1993-D, 11/03 at 102 Aaa 3,578,480
4.700%, 11/01/19
- -----------------------------------------------------------------------------------------------------------------------------------
$167,340,000 Total Investments - (cost $163,228,732) - 98.6% 179,635,060
============-----------------------------------------------------------------------------------------------------------------------
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Temporary Investments in Short-Term Municipal Securities - 0.4%
$ 600,000 Irvine Ranch Water District, Consolidated Refunding Bonds, Series 1985-B, A-1+ $600,000
1986 Capital Improvement Project, Variable Rate Demand Bonds, 3.350%, 10/01/04+
200,000 Irvine Ranch Water District, Consolidated Refunding Bonds, Series A, Variable Rate VMIG-1 200,000
Demand Bonds, 3.350%, 5/01/09+
- -----------------------------------------------------------------------------------------------------------------------------------
$ 800,000 Total Temporary Investments - 0.4% 800,000
===========------------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.0% 1,844,161
----------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $182,279,221
======================================================================================================================
<FN>
* Optional Call Provisions (not covered by the report of independent
auditors): 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.
** Ratings (not covered by the report of independent auditors):
Using the higher of Standard & Poor's or Moody's rating.
***Securities are backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities, which ensures the timely
payment of principal and interest. Securities are normally considered to be
equivalent to AAA rated securities.
N/R - Investment is not rated.
+ The security has a maturity of more than one year, but has variable rate
and demand features which qualify it as a short-term security. The rate
disclosed is that currently in effect. This rate changes periodically based on
market conditions or a specified market index.
</FN>
See accompanying notes to financial statements
</TABLE>
<PAGE>
<TABLE>
Portfolio of Investments
Nuveen California Investment Quality
Municipal Fund, Inc. (NQC)
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
EDUCATIONAL FACILITIES - 2.7%
$ 2,310,000 California Educational Facilities Authority, Revenue Bonds (Chapman College), 1/01 at 102 Baa2 $2,537,489
Series 1991, 7.300%, 1/01/02
1,500,000 California Educational Facilities Authority Revenue Bonds (University of 10/06 at 102 Aaa 1,575,555
San Francisco), Series 1996, 6.000%, 10/01/26
4,000,000 State Public Works Board of The State of California, Lease Revenue Refunding Bonds 3/06 at 102 Aaa 4,039,480
(California Community Colleges), 1996 Series B (Various Community Colleges
Projects), 5.625%, 3/01/19
- ----------------------------------------------------------------------------------------------------------------------------------
ESCROWED BONDS - 38.5%***
8,530,000 California Educational Facilities Authority, Revenue and Refunding Bonds (Loyola 10/97 at 102 Aaa 8,732,417
Marymount University), Series 1987, 8.125%, 10/01/17 (Pre-refunded to 10/01/97)
690,000 California Educational Facilities Authority, Revenue Bonds (Chapman College), 1/01 at 102 Baa2 767,604
Series 1991, 7.300%, 1/01/02 (Pre-refunded to 1/01/01)
California Health Facilities Financing Authority, Health Facility
Revenue Bonds (Health Dimensions, Incorporated), 1990 Series A:
2,300,000 7.500%, 5/01/15 (Pre-refunded to 5/01/00) 5/00 at 102 Aaa 2,538,027
4,395,000 7.000%, 5/01/20 (Pre-refunded to 5/01/00) 5/00 at 102 Aaa 4,794,769
8,075,000 California Health Facilities Financing Authority, Hospital Revenue Refunding Bonds 11/00 at 102 N/R 8,879,593
(Cedars-Sinai Medical Center), Series 1990, 7.000%, 11/01/15
(Pre-refunded to 11/01/00)
3,500,000 State Public Works Board of the State of California, Lease Revenue Bonds (Department 11/04 at 102 Aaa 4,079,985
of Corrections), 1994 Series A (California State of Prison-Monterey County
(Soledad II)), 6.875%, 11/01/14 (Pre-refunded to 11/01/04)
5,885,000 Calaveras County Water District (California), Certificates of Participation 5/01 at 102 Aaa 6,532,821
(1991 Ebbetts Pass Water System Improvements Project), 6.900%, 5/01/16
(Pre-refunded to 5/01/01)
5,500,000 Certificates of Participation (Open Space Acquisition Project), City of Cupertino, 4/01 at 102 N/R 6,122,325
California, Cupertino Public Facilities Corporation, 7.125%, 4/01/16
(Pre-refunded to 4/01/01)
4,500,000 Hospital Revenue Certificates of Participation (Desert Hospital Corporation Project), 7/00 at 102 AAA 5,050,170
Series 1990, 8.000%, 7/01/10 (Pre-refunded to 7/01/00)
8,650,000 Fontana Public Financing Authority (San Bernardino County, California), 12/01 at 102 N/R 9,962,897
Subordinate Lien Tax Allocation Revenue Bonds (North Fontana Redevelopment
Project), 1991 Series A, 7.750%, 12/01/20 (Pre-refunded to 12/01/01)
2,500,000 The Community Redevelopment Agency of the City of Los Angeles, California, Central 1/98 at 101 1/2 BBB 2,532,700
Business District Redevelopment Project Tax Allocation Refunding Bonds,
Series 1987-G, 6.750%, 7/01/10
6,000,000 The City of Los Angeles, California, Wastewater System Revenue Bonds, Series 1991-A, 2/99 at 102 Aaa 6,378,900
7.100%, 2/01/21 (Pre-refunded to 2/01/99)
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ESCROWED BONDS - continued
$ 5,500,000 Los Angeles County Metropolitan Transportation Authority (California), 7/01 at 102 Aaa $6,097,245
Proposition A Sales Tax Revenue Refunding Bonds, Series 1993-A,
6.750%, 7/01/20 (Pre-refunded to 7/01/01)
8,000,000 Mt. Diablo Hospital District, Insured Hospital Revenue Bonds, 1990 Series A, 12/00 at 102 Aaa 9,085,200
8.000%, 12/01/11 (Pre-refunded to 12/01/00)
8,000,000 Redevelopment Agency of the City of Pittsburg, California, Los Medanos, Community 8/01 at 103 Aaa 9,066,000
Development Project, Tax Allocation Bonds, Series 1991, 7.150%, 8/01/21
(Pre-refunded to 8/01/01)
6,505,000 Certificates of Participation (City of Poway 1991 Capital Improvement Project Poway 1/01 at 102 Aaa 7,238,179
Royal Mobilehome Park), Poway Redevelopment Agency, 7.200%, 1/01/24
(Pre-refunded to 1/01/01)
10,000,000 Sacramento Municipal Utility District, Electric Revenue Bonds, 1988 Series W, 8/98 at 102 Aaa 10,577,100
7.875%, 8/15/16 (Pre-refunded to 8/15/98)
2,000,000 Certificates of Participation (Community Center, Theater, and Library 12/98 at 102 A- 2,118,140
Projects), City of Vacaville (Solano County, California), to the Vacaville
Public Financing Authority, 7.200%, 12/01/13 (Pre-refunded to 12/01/98)
3,500,000 West Contra Costa Hospital District, Insured Health Facility Refunding Revenue Bonds 11/04 at 102 A+ 3,976,805
Series 1994, 6.500%, 11/01/17 (Pre-refunded to 11/01/04)
- ----------------------------------------------------------------------------------------------------------------------------------
GENERAL OBLIGATION BONDS - 6.2%
13,335,000 State of California, Various Purpose General Obligation Bond, 5.750%, 3/01/13 3/05 at 101 A1 13,978,280
2,395,000 Fontana Unified School District, San Bernardino County, California, 1997 General 5/09 at 102 Aaa 2,090,093
Obligation Refunding Bonds, Series A, 0.000%, 5/01/17
2,000,000 Pomona Unified School District, General Obligation Refunding Bonds, Series 1997-A, 8/11 at 103 Aaa 2,299,780
6.500%, 8/01/19
- ----------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE FACILITIES - 11.7%
10,000,000 California Health Facilities Financing Authority, Kaiser Permanente, Revenue Bonds, 12/00 at 102 AA 10,985,300
1990 Series A, 7.000%, 12/01/10
1,475,000 California Health Facilities Financing Authority, Kaiser Permanente Refunding Revenue 3/01 at 102 AA 1,547,600
Bonds, 1991 Series A, 6.250%, 3/01/21
3,000,000 California Statewide Communities Development Authority (Triad Healthcare), Revenue No Opt. Call A+ 3,228,000
Refunding Series 1992, Certificates of Participation, 6.250%, 8/01/06
Central Joint Powers Health Financing Authority, Certificates of
Participation, Series 1993 (Community Hospitals of Central
California):
3,250,000 5.250%, 2/01/13 2/03 at 102 Baa1 3,110,738
7,260,000 5.500%, 2/01/15 2/03 at 102 Baa1 7,045,975
5,000,000 City of Loma Linda, California, Hospital Revenue Bonds (Loma Linda University Medical 12/03 at 102 BBB 5,240,150
Center Project), Series 1993-A, 6.500%, 12/01/18
3,365,000 West Side Hospital District (Kern County, California), Insured Revenue Bonds, 2/01 at 102 A+ 3,669,903
Series 1991A, 7.500%, 2/01/23
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
HOUSING FACILITIES - 3.7%
$ 1,640,000 California Housing Finance Agency, Home Mortgage Revenue Bonds, 1988 Series C, 8/98 at 102 Aa $1,694,710
8.300%, 8/01/19 (Alternative Minimum Tax)
1,505,000 California Housing Finance Agency, Home Mortgage Revenue Bonds, 1988 Series E, 8/98 at 102 Aa 1,558,187
8.350%, 8/01/19 (Alternative Minimum Tax)
980,000 California Housing Finance Agency, Home Mortgage Revenue Bonds, 1989 Series B, 8/99 at 102 Aa 1,024,864
8.000%, 8/01/29 (Alternative Minimum Tax)
1,785,000 Southern California Home Financing Authority, Single Family Mortgage Revenue Bonds 3/01 at 102 AAA 1,889,173
(GNMA and FNMA Mortgage-Backed Securities Program), 1991 Issue A,
7.350%, 9/01/24 (Alternative Minimum Tax)
2,295,000 Southern California Home Financing Authority, Single Family Mortgage Revenue Bonds 4/99 at 102 AAA 2,403,554
(GNMA Mortgage-Backed Securities Program), 1989 Issue A, 7.625%, 10/01/22
(Alternative Minimum Tax)
2,430,000 City of Stanton Multifamily Housing Revenue Bonds (Continental Gardens Apartments), 8/07 at 102 AAA 2,496,849
Series 1997, 5.625%, 8/01/29 (Alternative Minimum Tax)
- ----------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL DEVELOPMENT REVENUE - 2.0%
5,500,000 California Pollution Control Financing Authority, Fixed Rate Resource Recovery Revenue 2/01 at 103 A1 5,984,000
Bonds (Waste Management, Inc.), 1991 Composite Series A, 7.150%, 2/01/11
(Alternative Minimum Tax)
- ----------------------------------------------------------------------------------------------------------------------------------
LEASE RENTAL - 8.9%
7,000,000 Certificates of Participation (1990 Adelanto Return to Custody Facility), 4/00 at 102 BBB+ 7,377,580
City of Adelanto, California, 7.100%, 4/01/10
2,750,000 Certificates of Participation, Fresno Unified School District, Fresno County, 5/01 at 102 A2 2,997,253
California, Series 1991A For Project Phase VI, 7.200%, 5/01/11
1,050,000 Certificates of Participation, Fresno Unified School District, Fresno County, 5/00 at 102 A2 1,110,123
California, Series of 1992B for Project Phase IX, 6.600%, 5/01/07
2,350,000 Lancaster Housing Authority, Lease Revenue Bonds (Brierwood Mobilehome Park 4/99 at 102 BBB+ 2,426,070
Project), Issue of 1994, 7.100%, 4/01/14
10,075,000 County of Orange, California, 1996 Recovery Certificates of Participation, Series A, 7/06 at 102 Aaa 10,573,713
6.000%, 7/01/26
2,000,000 Redding Joint Powers Financing Authority Solid Waste and Corporate Yard, Lease 1/04 at 102 A 1,979,420
Revenue Bonds, Series 1993A, 5.500%, 1/01/13
- ----------------------------------------------------------------------------------------------------------------------------------
OTHER REVENUE - 9.0%
2,195,000 Bell Community Redevelopment Agency, Bell Redevelopment Project Area, 1994 Tax 11/03 at 102 Aaa 2,394,262
Allocation Refunding Bonds, 6.300%, 11/01/13
2,500,000 The Community Redevelopment Agency of the City of Los Angeles, California, Central 1/98 at 101 1/2 BBB 2,547,650
Business District Redevelopment Project Tax Allocation Refunding Bonds,
Series G, 6.750%, 7/01/10
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OTHER REVENUE - continued
$ 1,685,000 City of Ontario, Community Facilities District No 5 (Freeway Interchange Project), 9/06 at 102 N/R $1,678,395
Special Tax Bonds, Series 1997, 6.375%, 9/01/17
3,600,000 Ontario Redevelopment Financing Authority (San Bernardino County, California), 1995 No Opt. Call Aaa 4,669,704
Revenue Refunding Bonds (Ontario Redevelopment Project No. 1), 7.400%, 8/01/25
1,500,000 City of Richmond, Limited Obligation Refunding Improvement Bonds, Reassessment 9/97 at 103 N/R 1,549,095
District No. 855 (Atlas Road West and Interchange), 6.600%, 9/02/19
9,000,000 Redevelopment Agency of the City of San Jose, Merged Area Redevelopment Project, 2/04 at 102 Aaa 7,999,470
Tax Allocation Bonds, Series 1993, 4.750%, 8/01/24
2,000,000 Redevelopment Agency of the City of San Leandro, Plaza 1 and Plaza 2 Redevelopment 6/03 at 102 A- 2,066,380
Projects, 1993 Tax Allocation Bonds, Series A, 6.125%, 6/01/23
3,565,000 Stanislaus County Waste-to-Energy Financing Agency, Solid Waste Facility Refunding 1/00 at 102 BBB+ 3,825,994
Revenue Certificates (Ogden Martin System of Stanislaus, Inc. Project), Series 1990,
7.625%, 1/01/10
- ----------------------------------------------------------------------------------------------------------------------------------
POLLUTION CONTROL FACILITIES - 4.4%
4,350,000 California Pollution Control Financing Authority, Pollution Control Revenue Bonds 12/97 at 102 A 4,481,718
(Pacific Gas and Electric Company), 1987 Series B, 8.875%, 1/01/10
(Alternative Minimum Tax)
7,945,000 City of Chula Vista, Industrial Development Revenue Bonds (San Diego Gas and Electric 12/02 at 102 Aaa 8,518,072
Company), 1992 Series A, 6.400%, 12/01/27 (Alternative Minimum Tax)
- ----------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 5.8%
1,000,000 Foothill/Eastern Transportation Corridor Agency, Toll Road Revenue Bonds Series 1995A, 1/05 at 102 Baa 1,022,850
6.000%, 1/01/34
12,000,000 Airports Commission, City and County of San Francisco, California, San Francisco 5/05 at 101 Aaa 12,621,480
International Airport, Second Series Revenue Bonds, Issue 11 (Noise Insulation
Program), 6.250%, 5/01/26 (Alternative Minimum Tax)
3,520,000 Airports Commission City and County of San Francisco, California, San Francisco, 5/06 at 101 Aaa 3,620,178
International Airport, Second Revenue Bonds, Issue 12A, 5.625%, 5/01/11
(Alternative Minimum Tax)
- ----------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 4.2%
7,990,000 Department of Water and Power of the City of Los Angeles Electric Plant Revenue 1/01 at 102 Aa3 8,721,164
Bonds, Issue of 1991, 7.100%, 1/15/31
3,405,000 Northern California Power Agency, Hydroelectric Project Number One Revenue Bonds, 7/98 at 102 A- 3,549,507
Refunding Series E, 7.150%, 7/01/24
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
WATER/SEWER FACILITIES - 1.7%
$ 5,500,000 Revenue Certificates of Participation, Series 1993A, Orange County Water District, 8/03 at 100 Aa $5,160,210
5.000%, 8/15/18
- -----------------------------------------------------------------------------------------------------------------------------------
$276,035,000 Total Investments - (cost $271,329,635) - 98.8% 293,820,845
============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.2% 3,459,274
----------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $297,280,119
======================================================================================================================
<FN>
* Optional Call Provisions (not covered by the report of independent
auditors): 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.
** Ratings (not covered by the report of independent auditors):
Using the higher of Standard & Poor's or Moody's rating.
***Securities are backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities, which ensures the timely
payment of principal and interest. Securities are normally considered to be
equivalent to AAA rated securities.
N/R - Investment is not rated.
</FN>
See accompanying notes to financial statements
</TABLE>
<PAGE>
<TABLE>
Portfolio of Investments
Nuveen California Select Quality
Municipal Fund, Inc. (NVC)
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
EDUCATIONAL FACILITIES - 2.1%
$ 5,000,000 State Public Works Board of the State of California Lease Revenue Bonds 9/05 at 100 A $5,171,550
(The Trustees of The California State University), 1995 Series A (Various
California State University Projects), 6.000%, 9/01/15
6,000,000 The Regents of the University of California Refunding Revenue Bonds (1989 Multiple 9/03 at 102 Aaa 5,611,140
Purpose Projects), Series C, 5.000%, 9/01/23
- ----------------------------------------------------------------------------------------------------------------------------------
ESCROWED BONDS - 25.4%***
15,500,000 California Health Facilities Financing Authority, Health Facility Revenue 1/00 at 101 1/2 A- 16,712,100
Bonds (Pomona Valley Hospital Medical Center), 1989 Series A,
7.000%, 1/01/18 (Pre-refunded to 1/01/00)
3,000,000 California Pollution Control Financing Authority, Solid Waste Revenue Bonds (North 7/02 at 102 Aaa 3,429,390
County Recycling Center), 1991 Series A Bonds, 6.750%, 7/01/17
3,310,000 State Public Works Board of the State of California Lease Revenue Bonds (California 9/01 at 102 Aaa 3,741,889
Community Colleges), 1991 Series A, 7.250%, 9/01/05 (Pre-refunded to 9/01/01)
5,285,000 Brea Public Financing Authority (Orange County, California), 1991 Tax Allocation 8/01 at 102 Aaa 5,868,411
Revenue Bonds, Series A (Redevelopment Project AB), 6.750%, 8/01/22 (Pre-refunded
to 8/01/01)
2,110,000 County of Contra Costa, California, 1989 Home Mortgage Revenue Bonds (GNMA No Opt. Call Aaa 2,410,148
Mortgage-Backed Securities Program), 7.700%, 11/01/09 (Alternative Minimum Tax)
7,000,000 East Bay Municipal Utility District (Alameda and Contra Costa Counties, California), 12/01 at 102 Aaa 7,720,300
Water System Subordinated Revenue Bonds, Series 1991, 6.375%, 6/01/12
(Pre-refunded to 12/01/01)
5,000,000 Elk Grove Unified School District Community Facilities District No. 1 12/99 at 102 Aaa 5,395,200
Special Tax Bonds, Series 1990, 6.800%, 12/01/20 (Pre-refunded to 12/01/99)
5,460,000 City of Loma Linda, California, Hospital Revenue Bonds (Loma Linda University 12/00 at 102 Aaa 6,035,866
Medical Center Project), Series 1990-B, 7.000%, 12/01/10
(Pre-refunded to 12/01/00)
3,300,000 The City of Los Angeles Wastewater System Revenue Bonds, Series 1990-B, 6/00 at 102 AAA 3,621,651
7.150%, 6/01/20 (Pre-refunded to 6/01/00)
7,500,000 Los Angeles County Metropolitan Transportation Authority (California), Proposition A 7/01 at 102 Aaa 8,353,950
Sales Tax Revenue Refunding Bonds, Series 1993-A, 6.900%, 7/01/21
(Pre-refunded to 7/01/01)
6,375,000 Mt. Diablo Hospital District, Insured Hospital Revenue Bonds, 1990 Series A, 12/00 at 102 Aaa 7,047,371
7.000%, 12/01/17 (Pre-refunded to 12/01/00)
1,705,000 City of Palm Springs Financing Authority Revenue (Tax Allocation Bonds), 1991 Series B 8/05 at 100 N/R 1,954,646
(Agency Loans), 6.800%, 8/01/11 (Pre-refunded to 8/01/05)
3,700,000 Riverside Public Financing Authority, 8.000%, 2/01/18 (Pre-refunded to 2/01/01) 2/01 at 102 N/R 4,205,938
19,000,000 Sacramento City Financing Authority 1991 Revenue Bonds, 6.800%, 11/01/20 11/01 at 102 Aaa 21,233,260
(Pre-refunded to 11/01/01)
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ESCROWED BONDS - continued
$ 1,350,000 City of St. Helena, Certificates of Participation, ABAG Finance Corporation 6/00 at 102 BBB $1,503,090
(California), 7.875%, 6/01/11 (Pre-refunded to 6/01/00)
3,920,000 City of San Diego, California, Certificates of Participation (Balboa Park and 7/01 at 100 Aa 4,300,005
Mission Bay Park Capital Improvements Program), Series 1991, 6.900%, 7/15/21
(Pre-refunded to 7/15/01)
Santa Clarita Public Financing Authority Local Agency Revenue Bonds, Series 1991:
6,800,000 7.000%, 10/01/20 (Pre-refunded to 10/01/01) 10/01 at 102 A- 7,632,524
3,000,000 6.750%, 10/01/21 (Pre-refunded to 10/01/01) 10/01 at 102 A- 3,329,760
6,500,000 Tri-City Hospital District (Oceanside, California), Insured Revenue Bonds, Series 1991, 2/02 at 102 Aaa 7,446,855
7.500%, 2/01/17 (Pre-refunded to 2/01/02)
3,300,000 The Regents of the University of California, Refunding Revenue Bonds (Multiple Purpose 9/02 at 102 A 3,733,158
Projects), Series A, 6.875%, 9/01/16 (Pre-refunded to 9/01/02)
1,605,000 Yosemite Community College District, Certificates of Participation, 7.750%, 7/01/11 7/01 at 102 N/R 1,828,609
(Pre-refunded to 7/01/01)
- ----------------------------------------------------------------------------------------------------------------------------------
GENERAL OBLIGATION BONDS - 2.8%
11,405,000 State of California Various Purpose General Obligation Bonds, 6.400%, 2/01/20 2/98 at 102 A1 11,738,140
(Alternative Minimum Tax)
2,025,000 State of California, Various Purpose General Obligation Bonds, 5.750%, 3/01/23 3/04 at 102 A1 2,063,151
- ----------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE FACILITIES - 11.1%
3,000,000 California Health Facilities Financing Authority, Insured Health Facility Refunding 7/04 at 102 Aaa 2,691,180
Revenue Bonds (Catholic Healthcare West), 1994 Series A, 4.750%, 7/01/19
5,000,000 California Health Facilities Financing Authority, Insured Health Facility Revenue Bonds 8/01 at 102 A+ 5,419,400
(The H.E.L.P. Group), 1991 Series A, 7.000%, 8/01/21
7,485,000 California Health Facilities Financing Authority, Kaiser Permanente Refunding Bonds, 3/01 at 102 AA 7,990,312
1991 Series A, 6.500%, 3/01/11
3,000,000 California Statewide Communities Development Authority, Series A Certificates of 4/03 at 102 A 3,114,480
Participation, Pacific Homes, 6.000%, 4/01/17
1,775,000 California Statewide Communities Development Authority, Certificates of Participation, 7/03 at 102 AA 1,760,339
St. Joseph Health System Obligated Group, 5.500%, 7/01/23
5,120,000 ABAG Finance Authority for Nonprofit Corporations, Certificates of Participation 11/03 at 102 A1 5,220,147
(Stanford University Hospital), California, Series 1993, 5.250%, 11/01/08
6,500,000 City of Loma Linda, California Hospital Revenue Refunding Bonds (Loma Linda University 12/99 at 102 Aaa 6,977,815
Medical Center Project), Series 1989-B, 7.000%, 12/01/15
9,350,000 City of Loma Linda, California, Hospital Revenue Refunding Bonds (Loma Linda 12/03 at 102 Aaa 8,993,298
University Medical Center Project), Series 1993-C, 5.375%, 12/01/22
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
HEALTH CARE FACILITIES - continued
$ 2,845,000 The City of Los Angeles, Insured Certificates of Participation, Ararat Home of Los 6/01 at 102 A $3,086,228
Angeles, 7.250%, 6/01/21
6,000,000 County of Madera, California, Certificates of Participation (Valley Children's Hospital 3/05 at 102 Aaa 6,105,600
Project), Series 1995, 5.750%, 3/15/28
4,000,000 County of Santa Clara, California, Certificates of Participation (The Terraces 3/01 at 102 A+ 4,268,880
of Los Gatos Project), 1991 Series, American Baptist Homes of the West,
6.900%, 3/01/18
- ----------------------------------------------------------------------------------------------------------------------------------
HOUSING FACILITIES - 11.1%
1,305,000 California Housing Finance Agency Home Mortgage Revenue Bonds, 1988 Series A, 8/98 at 102 Aa 1,355,569
8.125%, 8/01/19
6,230,000 California Housing Finance Agency Single Family Mortgage Bonds, 1995 Issue A-2, 5/05 at 102 Aaa 6,499,074
6.350%, 8/01/15 (Alternative Minimum Tax)
California Housing Finance Agency Single Family Mortgage Bonds, 1995 Issue B:
8,470,000 6.250%, 2/01/18 (Alternative Minimum Tax) 10/05 at 102 Aaa 8,783,729
400,000 6.300%, 8/01/24 (Alternative Minimum Tax) 10/05 at 102 Aaa 414,780
1,960,000 California Housing Finance Agency Single Family Mortgage Bonds, 1995 Issue B, 10/05 at 102 Aaa 2,017,467
6.250%, 8/01/14 (Alternative Minimum Tax)
3,455,000 California Housing Finance Agency Housing Revenue Bonds (Insured), 1991 Series A, 8/01 at 102 Aaa 3,661,264
7.200%, 2/01/26 (Alternative Minimum Tax)
4,220,000 California Housing Finance Agency Home Mortgage Revenue Bonds, 1989 Series F, 2/00 at 102 Aa 4,417,918
7.250%, 8/01/17
2,980,000 California Housing Finance Agency Home Mortgage Revenue Bonds, 1991 Series G, 8/01 at 102 Aa 3,139,281
7.050%, 8/01/27 (Alternative Minimum Tax)
6,160,000 California Housing Finance Agency Home Mortgage Revenue Bonds, 1995 Series M, 2/06 at 102 Aaa 6,350,837
6.150%, 8/01/27 (Alternative Minimum Tax)
5,955,000 California Housing Finance Agency Home Mortgage Revenue Bonds, 1996 Series H, 8/06 at 102 Aa 6,140,081
6.250%, 8/01/27 (Alternative Minimum Tax)
3,310,000 California Rural Home Mortgage Finance Authority Single Family Mortgage Revenue No Opt. Call AAA 3,759,002
Bonds (Mortgage-Backed Securities Program), 1995 Series B, 7.750%, 9/01/26
(Alternative Minimum Tax)
5,710,000 Puerto Rico Housing Bank and Finance Agency, Affordable Housing Mortgage Subsidy 4/05 at 102 Aaa 5,909,336
Program, Single Family Mortgage Revenue Bonds, Portfolio I, 6.250%, 4/01/29
(Alternative Minimum Tax)
2,860,000 Southern California Home Financing Authority Single Family Mortgage Revenue Bonds 10/01 at 102 AAA 3,013,267
(GNMA and FNMA Mortgage-Backed Securities Program), 1991 Issue B,
6.900%, 10/01/24 (Alternative Minimum Tax)
- ----------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL DEVELOPMENT REVENUE - 1.8%
9,150,000 California Pollution Control Financing Authority Sewage and Solid Waste Disposal 12/06 at 101 A1 9,265,748
Facilities Revenue Bonds (Anheuser-Busch Project), Series 1996, 5.750%, 12/01/30
(Alternative Minimum Tax)
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
LEASE RENTAL - 10.4%
$10,525,000 State Public Works Board of the State of California, Lease Revenue Bonds (Department 9/01 at 100 A $10,599,622
of Corrections), 1991 Series A (State Prisons - Imperial County), 5.750%, 9/01/21
285,000 ABAG Finance Corporation (California), Series A Certificates of Participation, 12/97 at 100 A- 287,796
Cities of Concord, Saratoga, Santa Cruz, and South Gate, 7.625%, 6/01/11
8,180,000 Fresno Unified School District, Fresno County, California, Certificates 5/99 at 102 A2 8,522,742
of Participation forMeasure a Capital Projects, Series of 1991B for
Project Phase VII, 6.850%, 5/01/12
City of Inglewood, California, Certificates of Participation (1991 Civic Center
Improvement Project):
5,515,000 7.000%, 8/01/11 8/01 at 102 A 5,932,651
5,000,000 7.000%, 8/01/19 8/01 at 102 A 5,371,250
3,000,000 6.500%, 8/01/21 8/01 at 102 A 3,154,350
4,255,000 Los Angeles Unified School District, Certificates of Participation (Capital
Facilities Project, No Opt. Call A 4,451,070
1991A), 7.000%, 5/01/99
1,250,000 CSAC Lease Financing Program Certificates of Participation (San Benito 8/98 at 102 Baa1 1,298,563
County, California - Jail and Juvenile Hall Facilities Project), 7.400%, 8/01/11
5,000,000 San Mateo County Joint Powers Financing Authority Lease Revenue Bonds (San Mateo 7/04 at 102 Aaa 5,317,900
County Health Center), 1994 Series A, 6.125%, 7/15/14
6,925,000 Santa Monica Community College District, Refunding Certificates of Participation 1991 6/01 at 102 A 7,560,854
Series A, 7.150%, 6/01/08
- ----------------------------------------------------------------------------------------------------------------------------------
OTHER REVENUE - 12.0%
9,725,000 Avalon Community Improvement Agency Community Improvement Project Area Tax 8/01 at 102 A- 10,618,922
Allocation Bonds, Series 1991 A, 7.250%, 8/01/21
2,215,000 Brea Public Financing Authority (Orange County, California), 1991 Tax 8/01 at 102 Aaa 2,426,953
Allocation Revenue Bonds, Series A(Redevelopment Project AB), 6.750%, 8/01/22
6,000,000 Cerritos Public Financing Authority (Cerritos, California), 1993 Revenue 11/03 at 102 A- 6,190,440
Bonds, Series A (Tax Exempt), (Los Cerritos Redevelopment Project Loan),
6.050%, 11/01/20
5,000,000 Culver City Redevelopment Financing Authority, 1993 Tax Allocation Refunding Revenue 11/03 at 102 Aaa 4,674,650
Bonds, 5.000%, 11/01/23
10,000,000 Los Angeles County Public Works Finance Authority, Revenue Bonds, Series 1994A (Los 10/04 at 102 Aa 10,558,200
Angeles County Regional Park and Open Space District), 6.000%, 10/01/15
1,390,000 City of Palm Springs Financing Authority Revenue (Tax Allocation Bonds), 1991 Series B 8/01 at 102 A- 1,485,020
(Agency Loans), 6.800%, 8/01/11
2,325,000 Pleasanton Joint Powers Financing Authority, Reassessment Revenue Bonds, 1993 9/03 at 102 Baa 2,444,854
Series A, 6.150%, 9/02/12
2,550,000 Riverside Public Financing Authority (Riverside County, California), 2/01 at 102 N/R 2,706,443
1991 Revenue Bonds, Series A (Multiple Project Loans), 8.000%, 2/01/18
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OTHER REVENUE - continued
$ 5,235,000 City and County of San Francisco, Redevelopment Financing Authority, 1993 Series C 8/03 at 103 A $4,998,797
Tax Allocation Revenue Bonds (San Francisco Redevelopment Projects),
5.125%, 8/01/18
10,000,000 Tustin Community Redevelopment Agency, Town Center Area Redevelopment Project, 12/01 at 102 Aaa 11,034,000
Subordinate Tax Allocation Bonds, Series 1991, 6.800%, 12/01/16
3,000,000 Westminster Redevelopment Agency, Westminster Commercial Redevelopment Project 8/01 at 102 BBB+ 3,263,130
No. 1, 1991 Tax Allocation Bonds, Series A (Orange County, California),
7.300%, 8/01/21
- ----------------------------------------------------------------------------------------------------------------------------------
POLLUTION CONTROL FACILITIES - 4.4%
9,650,000 California Pollution Control Financing Authority, Pollution Control Revenue Bonds 12/01 at 102 Aa3 10,453,266
(Southern California Edison Company), 1991 Series, 6.900%, 12/01/17 (Alternative
Minimum Tax)
10,350,000 California Pollution Control Financing Authority, Pollution Control No Opt. Call A1 11,833,569
Revenue Bonds (SanDiego Gas and Electric Company), 1991 Series A,
6.800%, 6/01/15 (Alternative Minimum Tax)
- ----------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 4.3%
3,275,000 California Statewide Communities Development Authority, Special Facilities Lease 10/07 at 102 Baa3 3,194,599
Revenue Bonds, 1997 Series A, 5.700%, 10/01/33 (Alternative Minimum Tax) (DD)
7,500,000 Harbor Department of the City of Los Angeles Revenue Bonds, Issue of 1996, 8/06 at 101 Aaa 7,917,525
6.200%, 8/01/25 (Alternative Minimum Tax)
3,450,000 Airport Commission, City and County of San Francisco, California, San Francisco 5/04 at 102 Aaa 3,754,946
International Airport, Second Series Revenue Bonds, Issue 5, 6.500%, 5/01/24
(Alternative Minimum Tax)
6,765,000 Airports Commission City and County of San Francisco, California, San Francisco 5/06 at 102 Aaa 6,828,997
International Airport, Second Series Revenue Bonds, Issue 10, 5.700%, 5/01/26
(Alternative Minimum Tax)
- ----------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 8.9%
9,500,000 California Pollution Control Financing Authority Exempt Facilities Revenue Bonds, 12/06 at 102 AA 9,344,105
Series 1996 (Mobil Oil Corporation Project), 5.500%, 12/01/29 (Alternative
Minimum Tax)
3,500,000 Department of Water and Power of the City of Los Angeles, California, Electric Plant 9/00 at 102 Aa3 3,817,345
Revenue Bonds, Second Issue of 1990, 7.250%, 9/15/30
6,375,000 Department of Water and Power of the City of Los Angeles Electric Plant Revenue 1/01 at 102 Aa3 6,958,376
Bonds, Issue of 1991, 7.100%, 1/15/31
14,020,000 Northern California Power Agency, Hydroelectric Project Number One Revenue Bonds, 7/98 at 102 A- 14,615,008
Refunding Series E, 7.150%, 7/01/24
10,500,000 Southern California Public Power Authority, Transmission Project Revenue Bonds, 1993 7/03 at 100 Aaa 9,833,144
Subordinate Refunding Series (Southern Transmission Project), 5.000%, 7/01/22
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
WATER/SEWER FACILITIES - 3.9%
$ 3,000,000 The City of Los Angeles Wastewater System Revenue Bonds, Refunding Series 1991-C, 6/99 at 102 A1 $3,197,040
7.100%, 6/01/18
3,325,000 Mammoth County Water District (Mono County, California), Certificates of Participation 12/00 at 103 A- 3,637,316
(Wastewater Capital Improvement Project), 7.400%, 12/15/10
10,135,000 The Metropolitan Water District of Southern California Water Revenue Bonds, Issue of No Opt. Call Aa 12,840,132
1992, 8.000%, 7/01/08
- -----------------------------------------------------------------------------------------------------------------------------------
$464,110,000 Total Investments - (cost $455,935,202) - 98.2% 493,566,709
============-----------------------------------------------------------------------------------------------------------------------
Temporary Investments in Short-Term Municipal Securities - 1.4%
$ 1,675,000 California Health Facilities Financing Authority, Refunding Revenue Bonds (St. Joseph VMIG-1 1,675,000
Health System), Series 1985B, Variable Rate Demand Bonds, 3.400%, 7/01/13+
500,000 California Pollution Control Financing Authority, Pollution Control Refunding Revenue A-1+ 500,000
Bonds (Pacific Gas and Electric Company), 1996 Series C, Variable Rate Demand
Bonds, 3.450%, 11/01/26+
200,000 Irvine Water District, Consolidated Refunding Bonds, Series 1985-B, 1986 Capital A-1+ 200,000
Improvement Project, Variable Rate Demand Bonds, 3.350%, 10/01/04+
1,400,000 Irvine Ranch Water District, Waterworks Bonds Improvement, District #182, Variable Rate A-1+ 1,400,000
Demand Bonds, 3.350%, 11/15/13+
1,600,000 Irvine Ranch Water District, Consolidated Refunding Bonds, Variable Rate Demand VMIG-1 1,600,000
Bonds, Series A, 3.350%, 5/01/09+
1,400,000 Orange County Sanitation District, Certificates of Participation, Variable Rate Demand VMIG-1 1,400,000
Bonds, 3.550%, 8/01/17+
400,000 City of Santa Ana, Multi-Modal Interchangeable Rate Health Facility Revenue Bonds A-1 400,000
(Town and Country Manor Project), Series 1990, Variable Rate Demand Bonds,
3.500%, 10/01/20+
- -----------------------------------------------------------------------------------------------------------------------------------
$ 7,175,000 Total Temporary Investments - 1.4% 7,175,000
===========------------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 0.4% 1,905,868
----------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $502,647,577
======================================================================================================================
<FN>
* Optional Call Provisions (not covered by the report of independent
auditors): 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.
** Ratings (not covered by the report of independent auditors):
Using the higher of Standard & Poor's or Moody's rating.
***Securities are backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities, which ensures the timely
payment of principal and interest. Securities are normally considered to be
equivalent to AAA rated securities.
N/R - Investment is not rated.
(DD)Security purchased on a delayed delivery basis (see note 1 of the Notes
to Financial Statements).
+ The security has a maturity of more than one year, but has variable rate
and demand features which qualify it as a short-term security. The rate
disclosed is that currently in effect. This rate changes periodically based on
market conditions or a specified market index.
</FN>
See accompanying notes to financial statements
</TABLE>
<PAGE>
<TABLE>
Portfolio of Investments
Nuveen California Quality Income
Municipal Fund, Inc. (NUC)
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
EDUCATIONAL FACILITIES - 3.0%
$ 1,000,000 Auxiliary Organization Revenue Certificates of Participation (The 4/06 at 101 Aaa $1,047,780
University Corporation - California State University, Northridge),
Series 1996, 6.000%, 4/01/26
California Educational Facilities Authority, Revenue Bonds (University of San Diego),
Series 1992:
1,965,000 6.500%, 10/01/08 10/02 at 102 A 2,126,444
5,000,000 6.500%, 10/01/22 10/02 at 102 A 5,361,750
2,000,000 California Educational Facilities Authority Revenue Bonds (University 10/06 at 102 Aaa 2,100,740
of San Francisco), Series 1996, 6.000%, 10/01/26
4,000,000 State Public Works Board of the State of California, Lease Revenue Refunding Bonds 3/06 at 102 Aaa 4,039,480
(California Community Colleges), 1996 Series B (Various Community Colleges
Projects), 5.625%, 3/01/19
- ----------------------------------------------------------------------------------------------------------------------------------
ESCROWED BONDS - 25.6%***
4,050,000 CSAC Finance Corporation, Nevada County Project, Fixed Rate Certificates of 4/98 at 101 A 4,178,669
Participation (California Counties Lease Financing Program - Nevada County Project),
Series 1986, 7.600%, 10/01/19 (Pre-refunded to 4/01/98)
7,430,000 California Educational Facilities Authority, Revenue Bonds (University 10/02 at 102 Aaa 8,275,608
of San Francisco), Series 1992, 6.400%, 10/01/17 (Pre-refunded to 10/01/02)
3,000,000 California Educational Facilities Authority, Revenue Bonds (Santa Clara University), 2/02 at 102 A1 3,283,530
Series 1991, 6.250%, 2/01/16 (Pre-refunded to 2/01/02)
3,680,000 California Health Facilities Financing Authority, Health Facility Revenue 5/00 at 102 Aaa 4,049,325
Bonds (Health Dimensions, Incorporated), 1990 Series A, 7.375%, 5/01/07
(Pre-refunded to 5/01/00)
8,000,000 California Pollution Control Financing Authority, Solid Waste Revenue Bonds (North 7/02 at 102 Aaa 9,145,040
County Recycling Center), 1991 Series A, 6.750%, 7/01/17
10,050,000 State Public Works, Board of the State of California, Lease Revenue Bonds 10/02 at 102 Aaa 11,330,370
(The Trustees of the California State University), 1992 Series A (Various
California State University Project), 6.700%, 10/01/17 (Pre-refunded to 10/01/02)
State Public Works, Board of the State of California, Lease Revenue Bonds
(Department of Corrections), 1994 Series A (California State of Prison - Monterey
County (Soledad II)):
6,950,000 6.875%, 11/01/14 (Pre-refunded to 11/01/04) 11/04 at 102 Aaa 8,101,685
7,625,000 7.000%, 11/01/19 (Pre-refunded to 11/01/04) 11/04 at 102 Aaa 8,946,641
2,110,000 State Public Works Board of the State of California, Lease Revenue Bonds (Department 9/01 at 102 Aaa 2,327,457
of Corrections), 1991 Series A (State Prisons - Imperial County), 6.500%, 9/01/11
(Pre-refunded to 9/01/01)
2,000,000 State of California, Department of Water Resources, Central Valley Project, Water 6/02 at 101 1/2 Aaa 2,208,240
System Revenue Bonds, Series K, 6.400%, 12/01/26 (Pre-refunded to 6/01/02)
3,000,000 Contra Costa Water Authority (Contra Costa County, California), Water Treatment 10/00 at 102 N/R 3,286,050
Revenue Bonds, 1990 Series A, 6.875%, 10/01/20 (Pre-refunded to 10/01/00)
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ESCROWED BONDS - continued
$12,805,000 County of Contra Costa, California, 1988 Home Mortgage, Mortgage Revenue Bonds No Opt. Call Aaa $16,462,876
(GNMA Mortgage-Backed Securities Program), 8.250%, 6/01/21 (Alternative
Minimum Tax)
4,500,000 City of Los Angeles, California, Wastewater System Revenue Bonds, Series 1991-D, 12/00 at 102 Aaa 4,936,770
6.700%, 12/01/21 (Pre-refunded to 12/01/00)
10,000,000 County of Orange, California, Certificates of Participation (Civic Center 8/01 at 102 Aaa 11,086,000
Expansion Project), 6.700%, 8/01/18 (Pre-refunded to 8/01/01)
4,000,000 County of San Bernardino, California, Certificates of Participation (West 11/98 at 102 Aaa 4,247,560
Valley Detention Center Project), 7.600%, 11/01/06 (Pre-refunded to 11/01/98)
13,525,000 County of San Bernardino, California, Single Family Mortgage Revenue Bonds (GNMA No Opt. Call Aaa 16,487,516
Mortgage-Backed Securities), 1989 Series A, 7.750%, 11/01/14 (Alternative
Minimum Tax)
6,185,000 The Regents of the University of California, Refunding Revenue Bonds (Multiple Purpose 9/02 at 102 A 6,996,843
Projects), Series A, 6.875%, 9/01/16 (Pre-refunded to 9/01/02)
- ----------------------------------------------------------------------------------------------------------------------------------
GENERAL OBLIGATION BONDS - 4.8%
State of California, Various Purpose General Obligation Bonds:
10,000,000 6.400%, 9/01/07 No Opt. Call A1 11,361,700
2,500,000 7.000%, 2/01/09 No Opt. Call A1 2,962,175
7,985,000 5.750%, 3/01/19 3/05 at 101 A1 8,184,705
1,000,000 Jefferson Union High School District (County of San Mateo, California), General 8/05 at 102 Aaa 1,011,300
Obligation Bonds, Election 1995, Series B, 5.650%, 8/01/27
- ----------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE FACILITIES - 10.8%
2,500,000 California Health Facilities Financing Authority, Insured Revenue Bonds (Episcopal 7/98 at 102 A+ 2,624,325
Homes Foundation Project), Series 1985A, 7.750%, 7/01/06
4,000,000 California Health Facilities Financing Authority, Insured Health Facility Revenue 5/03 at 102 A+ 4,146,240
Refunding Bonds (Valley Memorial Hospital), 1993 Series A, 6.000%, 5/01/17
3,225,000 California Health Facilities Financing Authority, Kaiser Permanente, Revenue Bonds, 12/00 at 102 AA 3,458,555
1990 Series A, 6.500%, 12/01/20
6,000,000 California Health Facilities Financing Authority, Insured Revenue Bonds (Southern 6/01 at 102 A+ 6,437,460
California Presbyterian Homes), Series 1991, 6.750%, 6/01/21
14,000,000 California Statewide Communities Development Authority, Revenue Certificates of 8/02 at 102 A1 15,061,480
Participation (Cedars-Sinai Medical Center), 6.500%, 8/01/15
1,250,000 California Statewide Communities Development Authority, Hospital Revenue Certificates No Opt. Call A1 1,415,775
of Participation, Cedars-Sinai Medical Center, Series 1992, 6.500%, 8/01/12
3,570,000 California Statewide Communities Development Authority (Triad Healthcare), Revenue No Opt. Call A+ 3,841,320
Refunding Series 1992, Certificates of Participation, 6.250%, 8/01/06
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
HEALTH CARE FACILITIES - continued
$ 3,110,000 City of Loma Linda, California, Hospital Revenue Bonds (Loma Linda University Medical 12/03 at 102 BBB $3,259,373
Center Project), Series 1993-A, 6.500%, 12/01/18
2,575,000 City of Santa Maria, Revenue Certificates of Participation (Marian Medical Center), 9/02 at 102 A 2,747,602
6.750%, 9/01/22
4,300,000 Sierra View Local Hospital District, Insured Health Facility Revenue Bonds, 3/02 at 102 A+ 4,535,640
Series 1992, 6.400%, 3/01/22
1,900,000 City of Torrance (California), Hospital Revenue Bonds (Little Company of Mary Hospital 7/02 at 102 A 2,043,754
Project), Series 1992, 6.875%, 7/01/15
3,025,000 Tulare Local Hospital District, Insured Health Facility Revenue Bonds, Series 1991A, 12/01 at 102 A+ 3,264,701
6.750%, 12/01/21
- ----------------------------------------------------------------------------------------------------------------------------------
HOUSING FACILITIES - 10.9%
1,205,000 California Housing Finance Agency, Home Mortgage Revenue Bonds, 1988 Series E, 8/98 at 102 Aa 1,247,585
8.350%, 8/01/19 (Alternative Minimum Tax)
1,810,000 California Housing Finance Agency Home Mortgage Revenue Bonds, 1991 Series G, 8/01 at 102 Aa 1,906,745
7.050%, 8/01/27 (Alternative Minimum Tax)
5,250,000 California Housing Finance Agency, Multi-Unit Rental Housing Revenue Bonds II, 1992 8/02 at 102 A1 5,528,145
Series B, 6.700%, 8/01/15
4,210,000 California Housing Finance Agency, Home Mortgage Revenue Bonds, 1995 Series B, 2/05 at 102 Aa 4,515,520
7.125%, 2/01/26 (Alternative Minimum Tax)
2,255,000 City of Corona (California), Single Family Mortgage Revenue Bonds, 11/06 at 102 Aaa 2,330,655
Series 1996A (Senior), 6.050%, 5/01/27
12,745,000 Delta Counties Home Mortgage Finance Authority, Single Family Mortgage Revenue 6/02 at 102 AAA 13,339,937
Bonds (Fannie Mae and Ginnie Mae Mortgage-Backed Securities Program), 1992
Series A, 6.750%, 12/01/25 (Alternative Minimum Tax)
3,250,000 The Housing Authority of the County of Kern, Multifamily Housing Revenue Bonds No Opt. Call Baa1 3,255,265
(North Meadows Project), 1985 Series F, 6.300%, 12/01/97
3,070,000 County of Riverside, California, Single Family Mortgage Revenue Bonds (GNMA 11/99 at 102 AAA 3,211,404
Mortgage-Backed Securities Program), Issue B of 1989, 7.600%, 11/01/19
(Alternative Minimum Tax)
1,730,000 Southern California Home Financing Authority, Single Family Mortgage Revenue Bonds 3/01 at 102 AAA 1,830,963
(GNMA and FNMA Mortgage-Backed Securities Program), 1991 Issue A,
7.350%, 9/01/24 (Alternative Minimum Tax)
1,715,000 Southern California Home Financing Authority, Single Family Mortgage Revenue Bonds 3/02 at 102 AAA 1,797,526
(GNMA and FNMA Mortgage-Backed Securities Program), 1992 Issue A,
6.750%, 9/01/22 (Alternative Minimum Tax)
3,900,000 City of Stanton, Multifamily Housing Revenue Bonds (Continental Gardens Apartments), 8/07 at 102 AAA 4,007,289
Series 1997, 5.625%, 8/01/29 (Alternative Minimum Tax) (Mandatory put 8/01/09)
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
HOUSING FACILITIES - continued
$ 8,000,000 City of Vista, Multifamily Housing Revenue Refunding Bonds (Vista Hacienda Project), 4/02 at 102 AAA $8,434,720
1992 Series A, 6.950%, 4/01/17
Housing Authority of the County of Yolo, 1992 Refunding Revenue
Bonds, Series A (Russell Park Apartments):
1,000,000 6.900%, 11/01/08 5/02 at 103 Aa3 1,065,960
1,030,000 7.000%, 11/01/14 5/02 at 103 Aa3 1,091,182
- ----------------------------------------------------------------------------------------------------------------------------------
LEASE RENTAL - 13.4%
County of Alameda, Certificates of Participation (1992 Capital
Projects), Alameda County Public Facilities Corporation:
7,865,000 6.750%, 6/01/16 6/02 at 102 A 8,638,523
10,000,000 6.000%, 6/01/22 6/02 at 102 A 10,363,500
4,915,000 Certificates of Participation (1991 Financing Project), County of Alameda, California, 9/06 at 102 Aaa 5,187,586
Alameda County Public Facilities Corporation, 6.000%, 9/01/21
2,200,000 City of Coalinga, California, Certificates of Participation (1989 Coalinga Return to 4/00 at 102 BBB+ 2,315,610
Custody Facility), 7.000%, 4/01/10
1,700,000 Foothill-De Anza Community College District (County of Santa Clara, California), 3/02 at 102 A- 1,889,652
Certificates of Participation (1992 De Anza Campus Center Project), 7.350%, 3/01/07
2,725,000 City of Fresno, California, Certificates of Participation (1992 Street Improvement 12/00 at 102 A1 2,912,916
Project), 6.625%, 12/01/11
7,000,000 Fresno Unified School District, Fresno County, California, Certificates 5/99 at 102 A2 7,313,320
of Participation for Measure A Capital Projects, Series of 1991C for
Project Phase VIII, 7.000%, 5/01/12
5,210,000 Fresno Unified School District, Fresno County, California, 5/00 at 102 A2 5,472,949
Certificates of Participation for Measure ACapital Projects,
Series of 1992B for Project Phase IX, 6.700%, 5/01/12
4,000,000 Inland Empire Solid Waste Financing Authority Revenue Bonds, 1996 Series B(Landfill No Opt. Call Aaa 4,405,960
Improvement Financing Project), 6.250%, 8/01/11 (Alternative Minimum Tax)
8,000,000 Lancaster School District, Certificates of Participation (1992 Refunding Project), 3/02 at 102 Aaa 9,063,760
7.000%, 3/01/22
2,500,000 Certificates of Participation (Western Nevada County Solid Waste Management System - 6/01 at 102 Baa 2,647,325
1991 Project), County of Nevada, California, 7.500%, 6/01/21
2,000,000 County of Orange, California, 1996 Recovery Certificates of Participation, Series A, 7/06 at 102 Aaa 2,099,000
6.000%, 7/01/26
3,000,000 City of Santa Barbara, California, Certificates of Participation (Harbor 10/02 at 102 A 3,246,000
Refunding Project), 6.750%, 10/01/27
- ----------------------------------------------------------------------------------------------------------------------------------
OTHER REVENUE - 13.8%
2,100,000 Cudahy Redevelopment Agency, Cudahy Redevelopment Project, Tax Allocation 9/03 at 102 BBB 2,218,293
Refunding Bonds, Series 1994A, 6.700%, 9/01/24
5,000,000 Culver City Redevelopment Financing Authority, 1993 Tax Allocation Refunding Revenue 11/03 at 102 Aaa 4,384,500
Bonds, 4.600%, 11/01/20
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OTHER REVENUE - continued
$ 3,000,000 Fontana Public Financing Authority (San Bernardino County, California), Tax Allocation 9/00 at 102 BB+ $3,168,060
Revenue Bonds (North Fontana Redevelopment Project), 1990 Series A, 7.250%, 9/01/20
10,000,000 Fontana Redevelopment Agency, Jurupa Hills Redevelopment Project Area (County of 10/02 at 102 BBB+ 10,904,200
San Bernardino, California), Refunding Tax Allocation Bonds, 1992 Series A,
7.100%, 10/01/23
5,435,000 Community Redevelopment Financing Authority of the Community Redevelopment 9/02 at 102 Ba 5,673,107
Agency of the City of Los Angeles, California, Pooled Financing Bonds, Series A
(Bunker Hill, Los Angeles Harbor Industrial Center and Monterey Hills Redevelopment
Projects), 6.375%, 9/01/14
2,000,000 Redevelopment Agency of the City of Moorpark, Moorpark Redevelopment Project, 10/03 at 102 A- 2,062,180
1993 Tax Allocation Bonds, 6.125%, 10/01/18
15,300,000 Ontario Redevelopment Financing Authority (San Bernardino County, California), 1995 No Opt. Call Aaa 19,846,242
Revenue Refunding Bonds (Ontario Redevelopment Project No. 1), 7.400%, 8/01/25
3,400,000 Orange County Development Agency, Santa Ana Heights Project Area, 1993 Tax 9/03 at 102 Baa 3,496,220
Allocation Revenue Bonds, 6.125%, 9/01/23
Orange County Local Transportation Authority (Orange County,
California), Measure M Sales Tax Revenue Bonds (Limited Tax
Bonds):
3,000,000 6.000%, 2/15/07 No Opt. Call Aa 3,280,650
2,250,000 6.000%, 2/15/08 No Opt. Call Aa 2,468,025
6,670,000 City of Redlands, Certificates of Participation (1993 Refunding of 1986 and 1987 9/97 at 100 Aaa 6,685,675
Projects), 6.800%, 3/01/07
3,385,000 The Community Redevelopment Agency of the City of Santa Ana, Orange County, 9/99 at 102 A- 3,546,871
California, Santa Ana South Harbor Boulevard/Fairview Street Redevelopment
Project, 1989 Series CTax Allocation Refunding Bonds, 7.250%, 9/01/09
- ----------------------------------------------------------------------------------------------------------------------------------
POLLUTION CONTROL FACILITIES - 3.3%
10,000,000 California Pollution Control Financing Authority, Pollution Control Revenue Bonds 12/01 at 102 Aa3 10,832,400
(Southern California Edison Company), 1991 Series, 6.900%, 12/01/17 (Alternative
Minimum Tax)
5,000,000 California Pollution Control Financing Authority, Pollution Control Revenue 6/02 at 102 A 5,424,900
Bonds (Pacific Gas and Electric Company), 1992 Series A, 6.625%, 6/01/09
(Alternative Minimum Tax)
- ----------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 2.6%
12,500,000 Foothill/Eastern Transportation Corridor Agency, Toll Road Revenue Bonds, 1/05 at 102 Baa 12,785,625
Series 1995A, 6.000%, 1/01/34
- ----------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 5.4%
4,030,000 Department of Water and Power of the City of Los Angeles, California, Electric Plant 2/99 at 102 Aa3 4.259,307
Revenue Bonds, Issue of 1989, 7.375%, 2/01/29
15,065,000 Northern California Power Agency, Hydroelectric Project Number One Revenue Bonds, 7/98 at 102 A- 15,704,359
Refunding Series E, 7.150%, 7/01/24
5,500,000 Southern California Public Power Authority, Multiple Project Revenue Bonds, 1989 No Opt. Call A 6,386,600
Series, 6.750%, 7/01/11
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
WATER/SEWER FACILITIES - 4.9%
$ 2,000,000 Coachella Valley Water District, Improvement District No. 71 (Storm Water District), 10/02 at 102 A $2,168,680
(Riverside, Imperial, and San Diego Counties, California), 1992 Certificates of
Participation (Flood Control Project), 6.750%, 10/01/12
Department of Water and Power of the City of Los Angeles, Water
Works Refunding Revenue Bonds, Second Issue of 1993:
4,060,000 4.500%, 5/15/13 5/03 at 102 Aa 3,632,320
8,400,000 4.500%, 5/15/30 5/03 at 102 Aaa 7,031,220
8,295,000 San Diego County Water Authority, Water Revenue Certificates of Participation, Series 5/01 at 102 Aa 8,941,343
1991A, 6.300%, 5/01/05
2,000,000 City of Santa Barbara, California, Certificates of Participation (1992 Water System 4/02 at 102 Aaa 2,195,600
Improvement Project and Refunding), 6.700%, 4/01/27
- -----------------------------------------------------------------------------------------------------------------------------------
$444,490,000 Total Investments - (cost $442,016,722) - 98.5% 482,597,853
============-----------------------------------------------------------------------------------------------------------------------
Temporary Investments in Short-Term Municipal Securities - 0.1%
$ 400,000 Certificates of Participation, California Statewide Communities Development Authority, VMIG-1 400,000
Northern California Retired Officers Community, Variable Rate Demand Bonds,
3.400%, 6/01/26+
200,000 Orange County, Irvine Coast Assessment District, Series 88-1, Variable Rate Demand VMIG-1 200,000
Bonds, 3.550%, 9/02/18+
- -----------------------------------------------------------------------------------------------------------------------------------
$ 600,000 Total Temporary Investments - 0.1% 600,000
===========------------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.4% 6,763,492
----------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $489,961,345
======================================================================================================================
<FN>
* Optional Call Provisions (not covered by the report of independent
auditors): 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.
** Ratings (not covered by the report of independent auditors):
Using the higher of Standard & Poor's or Moody's rating.
***Securities are backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities, which ensures the timely
payment of principal and interest. Securities are normally considered to be
equivalent to AAA rated securities.
N/R - Investment is not rated.
+ The security has a maturity of more than one year, but has variable rate
and demand features which qualify it as a short-term security. The rate
disclosed is that currently in effect. This rate changes periodically based on
market conditions or a specified market index.
</FN>
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
Statement of Net Assets
August 31, 1997
<CAPTION>
California California California
Value Performance Plus Opportunity
<S> <C> <C> <C>
Assets
Investments in municipal securities,
at market value (note 1) $246,749,344 $279,212,852 $179,635,060
Temporary investments in short-term municipal
securities, at amortized cost, which approximates
market value (note 1) -- 500,000 800,000
Cash -- 211,147 70,469
Receivables:
Interest 3,941,389 4,900,000 2,638,526
Investments sold 5,281,569 9,880,995 --
Other assets 10,614 18,421 10,970
------------ ------------ ------------
Total assets 255,982,916 294,723,415 183,155,025
------------ ------------ ------------
Liabilities
Cash overdraft 336,212 -- --
Payable for investments purchased -- 6,411,659 --
Accrued expenses:
Management fees (note 6) 131,087 156,718 100,289
Other 137,702 94,112 87,762
Preferred share dividends payable N/A 43,821 17,174
Common share dividends payable 1,209,609 1,080,850 670,579
------------ ------------ ------------
Total liabilities 1,814,610 7,787,160 875,804
------------ ------------ ------------
Net assets (note 7) $254,168,306 $286,936,255 $182,279,221
============ ============ ============
Preferred shares, at liquidation value N/A $ 90,000,000 $ 55,000,000
============ ============ ============
Preferred shares outstanding N/A 3,600 2,200
============ ============ ============
Common shares outstanding 25,200,196 12,568,020 7,935,847
============ ============ ============
Net asset value per Common share outstanding (net assets
less Preferred shares at liquidation
value, divided by Common shares outstanding) $ 10.09 $ 15.67 $ 16.04
============ ============ ============
N/A - Fund is not authorized to issue Preferred Shares
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
Statement of Net Assets
August 31, 1997
<CAPTION>
California California California
Investment Quality Select Quality Quality Income
<S> <C> <C> <C>
Assets
Investments in municipal securities,
at market value (note 1) $293,820,845 $493,566,709 $482,597,853
Temporary investments in short-term municipal
securities, at amortized cost, which approximates
market value (note 1) -- 7,175,000 600,000
Cash 262,029 157,648 150,482
Receivables:
Interest 4,391,762 7,237,537 8,709,641
Investments sold 9,452,912 20,600 85,000
Other assets 12,167 10,984 20,093
------------ ------------ ------------
Total assets 307,939,715 508,168,478 492,163,069
------------ ------------ ------------
Liabilities
Cash overdraft -- -- --
Payable for investments purchased 9,267,589 3,210,095 --
Accrued expenses:
Management fees (note 6) 162,255 270,982 264,926
Other 99,744 148,207 126,631
Preferred share dividends payable 40,670 44,081 62,786
Common share dividends payable 1,089,338 1,847,536 1,747,381
------------ ------------ ------------
Total liabilities 10,659,596 5,520,901 2,201,724
------------ ------------ ------------
Net assets (note 7) $297,280,119 $502,647,577 $489,961,345
============ ============ ============
Preferred shares, at liquidation value $ 90,000,000 $150,000,000 $150,000,000
============ ============ ============
Preferred shares outstanding 3,600 6,000 6,000
============ ============ ============
Common shares outstanding 13,204,092 22,530,924 21,440,259
============ ============ ============
Net asset value per Common share outstanding (net assets
less Preferred shares at liquidation
value, divided by Common shares outstanding) $ 15.70 $ 15.65 $ 15.86
============ ============ ============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
Statement of Operations
Year ended August 31, 1997
<CAPTION>
California California California
Value Performance Plus Opportunity
<S> <C> <C> <C>
Investment Income
Tax-exempt interest income (note 1) $16,666,826 $18,218,855 $11,339,354
----------- ----------- -----------
Expenses:
Management fees (note 6) 1,573,166 1,826,045 1,165,818
Preferred shares - auction fees N/A 225,463 137,781
Preferred shares - dividend disbursing agent fees N/A 24,756 14,059
Shareholders' servicing agent fees and expenses 70,882 33,775 20,514
Custodian's fees and expenses 52,450 55,515 44,533
Directors' fees and expenses (note 6) 1,884 2,264 1,515
Professional fees 13,227 20,136 19,735
Shareholders' reports - printing and mailing expenses 84,973 58,152 34,966
Stock exchange listing fees 32,766 25,833 17,738
Investor relations expense 23,580 20,717 13,462
Other expenses 14,676 19,034 17,090
----------- ----------- -----------
Total expenses 1,867,604 2,311,690 1,487,211
----------- ----------- -----------
Net investment income 14,799,222 15,907,165 9,852,143
----------- ----------- -----------
Realized and Unrealized Gain from Investments
Net realized gain from investment transactions
(notes 1 and 4) 871,832 295,043 163,232
Net change in unrealized appreciation or depreciation
of investments 2,662,398 3,027,505 3,417,852
----------- ----------- -----------
Net gain from investments 3,534,230 3,322,548 3,581,084
----------- ----------- -----------
Net increase in net assets from operations $18,333,452 $19,229,713 $13,433,227
=========== =========== ===========
N/A - Fund is not authorized to issue Preferred Shares
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
Statement of Operations
Year ended August 31, 1997
<CAPTION>
California California California
Investment Quality Select Quality Quality Income
<S> <C> <C> <C>
Investment Income
Tax-exempt interest income (note 1) $18,402,602 $30,521,735 $29,492,397
----------- ----------- -----------
Expenses:
Management fees (note 6) 1,890,257 3,149,787 3,071,063
Preferred shares - auction fees 225,463 375,770 375,770
Preferred shares - dividend disbursing agent fees 14,059 24,380 29,870
Shareholders' servicing agent fees and expenses 31,123 44,912 34,965
Custodian's fees and expenses 56,630 75,985 77,564
Directors' fees and expenses (note 6) 2,337 3,794 3,705
Professional fees 20,173 20,946 20,891
Shareholders' reports - printing and mailing expenses 63,270 99,329 106,653
Stock exchange listing fees 25,893 33,992 32,439
Investor relations expense 21,503 34,726 32,670
Other expenses 18,830 28,170 25,290
----------- ----------- -----------
Total expenses 2,369,538 3,891,791 3,810,880
----------- ----------- -----------
Net investment income 16,033,064 26,629,944 25,681,517
----------- ----------- -----------
Realized and Unrealized Gain from Investments
Net realized gain from investment transactions
(notes 1 and 4) 18,985 389,794 81,484
Net change in unrealized appreciation or depreciation
of investments 4,197,880 11,488,811 12,987,562
----------- ----------- -----------
Net gain from investments 4,216,865 11,878,605 13,069,046
----------- ----------- -----------
Net increase in net assets from operations $20,249,929 $38,508,549 $38,750,563
=========== =========== ===========
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
Statement of Changes in Net Assets
<CAPTION>
California Value California Performance Plus
Year ended Year ended Year ended Year ended
8/31/97 8/31/96 8/31/97 8/31/96
<S> <C> <C> <C> <C>
Operations
Net investment income $ 14,799,222 $ 13,921,341 $ 15,907,165 $ 15,964,701
Net realized gain from investment
transactions (notes 1 and 4) 871,832 3,342,828 295,043 494,226
Net change in unrealized appreciation or
depreciation of investments 2,662,398 (6,339,050) 3,027,505 (1,068,494)
------------- ------------- ------------- ------------
Net increase in net assets from operations 18,333,452 10,925,119 19,229,713 15,390,433
------------- ------------- ------------- ------------
Distributions to Shareholders (note 1)
From undistributed net investment income:
Common shareholders (14,749,502) (14,178,555) (12,928,998) (8,025,751)
Preferred shareholders N/A N/A (2,803,257) (3,061,546)
From accumulated net realized gains from
investment transactions:
Common shareholders (2,245,205) (1,191,439) (236,296) --
Preferred shareholders N/A N/A (57,906) --
In excess of net realized gains:
Common shareholders -- -- -- --
Preferred shareholders -- -- -- --
------------- ------------- ------------- ------------
Decrease in net assets from distributions
to shareholders (16,994,707) (15,369,994) (16,026,457) (9,774,481)
------------- ------------- ------------- ------------
Capital Share Transactions (note 2)
Net proceeds from shares issued in
acquisition of California Income (note 1) -- 61,944,964 -- --
Net proceeds from Common shares issued
to shareholders due to reinvestment
of distributions 881,931 1,021,632 1,628,670 837,705
------------- ------------- ------------- ------------
Net increase in net assets from capital
share transactions 881,931 62,966,596 1,628,670 837,705
------------- ------------- ------------- ------------
Net increase (decrease) in net assets 2,220,676 58,521,721 4,831,926 338,015
Net assets at beginning of year 251,947,630 193,425,909 282,104,329 281,766,314
------------- ------------- ------------- ------------
Net assets at end of year $ 254,168,306 $ 251,947,630 $ 286,936,255 $282,104,329
============= ============= ============= ============
Balance of undistributed net investment
income at end of year $ 173,109 $ 123,389 $ 848,071 $ 673,161
============= ============= ============= ============
<PAGE>
<CAPTION>
California Opportunity
Year ended Year ended
8/31/97 8/31/96
<S> <C> <C>
Operations
Net investment income $ 9,852,143 $ 9,837,055
Net realized gain from investment
transactions (notes 1 and 4) 163,232 121,102
Net change in unrealized appreciation or
depreciation of investments 3,417,852 (325,510)
------------- -------------
Net increase in net assets from operations 13,433,227 9,632,647
------------- -------------
Distributions to Shareholders (note 1)
From undistributed net investment income:
Common shareholders (8,025,751) (8,046,049)
Preferred shareholders (1,748,730) (1,828,844)
From accumulated net realized gains from
investment transactions:
Common shareholders -- (111,518)
Preferred shareholders -- (28,918)
In excess of net realized gains:
Common shareholders -- (87,831)
Preferred shareholders -- (22,760)
------------- -------------
Decrease in net assets from distributions
to shareholders (9,774,481) (10,125,920)
------------- -------------
Capital Share Transactions (note 2)
Net proceeds from shares issued in
acquisition of California Income (note 1) -- --
Net proceeds from Common shares issued
to shareholders due to reinvestment
of distributions 758,304 283,207
------------- -------------
Net increase in net assets from capital
share transactions 758,304 283,207
------------- -------------
Net increase (decrease) in net assets 4,417,050 (210,066)
Net assets at beginning of year 177,862,171 178,072,237
------------- -------------
Net assets at end of year $ 182,279,221 $ 177,862,171
============= =============
Balance of undistributed net investment
income at end of year $ 364,713 $ 287,051
============= =============
<FN>
N/A - Fund is not authorized to issue Preferred Shares
</FN>
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
Statement of Changes in Net Assets
<CAPTION>
California Investment Quality California Select Quality
Year ended Year ended Year ended Year ended
8/31/97 8/31/96 8/31/97 8/31/96
<S> <C> <C> <C> <C>
Operations
Net investment income $ 16,033,064 $ 16,155,006 $ 26,629,944 $ 26,586,839
Net realized gain from investment
transactions (notes 1 and 4) 18,985 272,395 389,794 2,421,884
Net change in unrealized appreciation or
depreciation of investments 4,197,880 (379,617) 11,488,811 (357,214)
------------- ------------- ------------- -------------
Net increase in net assets from operations 20,249,929 16,047,784 38,508,549 28,651,509
------------- ------------- ------------- -------------
Distributions to Shareholders (note 1)
From undistributed net investment income:
Common shareholders (13,028,724) (13,286,809) (22,122,630) (21,986,737)
Preferred shareholders (2,897,105) (2,876,627) (4,582,259) (4,746,184)
From accumulated net realized gains from
investment transactions:
Common shareholders -- -- (1,252,537) (2,205,437)
Preferred shareholders -- -- (266,364) (576,912)
In excess of net realized gains:
Common shareholders -- -- -- --
Preferred shareholders -- -- -- --
------------- ------------- ------------- -------------
Decrease in net assets from distributions
to shareholders (15,925,829) (16,163,436) (28,223,790) (29,515,270)
------------- ------------- ------------- -------------
Capital Share Transactions (note 2)
Net proceeds from shares issued in
acquisition of California Income (note 1) -- -- -- --
Net proceeds from Common shares issued
to shareholders due to reinvestment
of distributions 1,533,387 1,112,338 2,149,140 1,110,508
------------- ------------- ------------- -------------
Net increase in net assets from capital
share transactions 1,533,387 1,112,338 2,149,140 1,110,508
------------- ------------- ------------- -------------
Net increase (decrease) in net assets 5,857,487 996,686 12,433,899 246,747
Net assets at beginning of year 291,422,632 290,425,946 490,213,678 489,966,931
------------- ------------- ------------- -------------
Net assets at end of year $ 297,280,119 $ 291,422,632 $ 502,647,577 $ 490,213,678
============= ============= ============= =============
Balance of undistributed net investment
income at end of year $ 618,512 $ 511,277 $ 781,209 $ 856,154
============= ============= ============= =============
<PAGE>
<CAPTION>
California Quality Income
Year ended Year ended
8/31/97 8/31/96
<S> <C> <C>
Operations
Net investment income $ 25,681,517 $ 25,627,699
Net realized gain from investment
transactions (notes 1 and 4) 81,484 40,032
Net change in unrealized appreciation or
depreciation of investments 12,987,562 4,272,873
------------- -------------
Net increase in net assets from operations 38,750,563 29,940,604
------------- -------------
Distributions to Shareholders (note 1)
From undistributed net investment income:
Common shareholders (20,855,446) (20,493,631)
Preferred shareholders (4,783,533) (4,927,592)
From accumulated net realized gains from
investment transactions:
Common shareholders -- (216,757)
Preferred shareholders -- (62,307)
In excess of net realized gains:
Common shareholders -- (145,910)
Preferred shareholders -- (41,943)
------------- -------------
Decrease in net assets from distributions
to shareholders (25,638,979) (25,888,140)
------------- -------------
Capital Share Transactions (note 2)
Net proceeds from shares issued in
acquisition of California Income (note 1) -- --
Net proceeds from Common shares issued
to shareholders due to reinvestment
of distributions 1,352,091 380,868
------------- -------------
Net increase in net assets from capital
share transactions 1,352,091 380,868
------------- -------------
Net increase (decrease) in net assets 14,463,675 4,433,332
Net assets at beginning of year 475,497,670 471,064,338
------------- -------------
Net assets at end of year $ 489,961,345 $ 475,497,670
============= =============
Balance of undistributed net investment
income at end of year $ 1,415,172 $ 1,372,634
============= =============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
Notes to Financial Statements
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
The California Funds (the "Funds") covered in this report and their
corresponding New York Stock Exchange symbols are Nuveen California Municipal
Value Fund, Inc. (NCA), 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
Select Quality Municipal Fund, Inc. (NVC) and Nuveen California Quality Income
Municipal Fund, Inc. (NUC).
California Value is not authorized by its Articles of Incorporation to issue
Preferred shares. Therefore, in the Notes to Financial Statements, "N/A"
represents not-applicable.
Each Fund invests primarily in a diversified portfolio of municipal obligations
issued by state and local government authorities within the state of California.
The Funds are registered under the Investment Company Act of 1940 as closed-end,
diversified management investment companies.
On January 8, 1996, California Value acquired all of the net assets of Nuveen
California Municipal Income Fund, Inc. (NCM) pursuant to a plan of
reorganization approved by the shareholders of California Income on November 16,
1995. The acquisition was accomplished by a tax-free exchange of 6,045,848
shares of California Value for the 5,209,911 shares of California Income
outstanding on January 8, 1996. California Income's net assets at that date of
$61,944,964 including $3,919,735 of net unrealized appreciation which were
combined with that of California Value. The combined net assets of California
Value immediately after the acquisition were $256,603,995.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with
generally accepted accounting principles.
Securities Valuation
The prices of municipal bonds in each Fund's investment portfolio are provided
by a pricing service approved by the Fund's Board of Directors. When price
quotes are not readily available (which is usually the case for municipal
securities), the pricing service establishes fair market value based on yields
or prices of municipal bonds of comparable quality, type of issue, coupon,
maturity and rating, indications of value from securities dealers and general
market conditions. Temporary investments in securities that have variable rate
and demand features qualifying them as short-term securities are valued at
amortized cost, which approximates market value.
Securities Transactions
Securities transactions are recorded on a trade-date basis. Realized gains and
losses from such transactions are determined on the specific identification
method. Securities purchased or sold on a when-issued or delayed delivery basis
may have extended settlement periods. The securities so purchased are subject to
market fluctuation during this period. The Funds have instructed the custodian
to segregate assets in a separate account with a current value at least equal to
the amount of their when-issued and delayed delivery purchase commitments. At
August 31, 1997, California Select Quality had an outstanding purchase
commitment of $3,210,095. There were no such purchase commitments in any of the
other Funds.
<PAGE>
Interest Income
Interest income is determined on the basis of interest accrued, adjusted for
amortization of premiums and accretion of discounts on long-term debt securities
when required for federal income tax purposes.
Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund
intends to comply with the requirements of the Internal Revenue Code applicable
to regulated investment companies and to distribute all of its tax-exempt net
investment income, in addition to any significant amounts of net realized
capital gains and/or market discount realized from investment transactions. The
Funds currently consider significant net realized capital gains and/or market
discount as amounts in excess of $.001 per Common share for California Value and
$.01 per Common share for the other Funds. Furthermore, each Fund intends to
satisfy conditions which will enable interest from municipal securities, which
is exempt from regular federal and California state income taxes, to retain such
tax-exempt status when distributed to shareholders of the Funds. All income
dividends paid during the fiscal year ended August 31, 1997, have been
designated Exempt Interest Dividends. Net realized capital gain and market
discount distributions are subject to federal taxation.
Dividends and Distributions to Shareholders
Tax-exempt net investment income is declared as a dividend monthly and payment
is made or reinvestment is credited to shareholder accounts on the first
business day after month-end. Net realized capital gains and/or market discount
from investment transactions, if any, are distributed to shareholders not less
frequently than annually. Furthermore, capital gains are distributed only to the
extent they exceed available capital loss carryovers.
Distributions to shareholders of tax-exempt net investment income, net realized
capital gains and/or market discount are recorded on the ex-dividend date. The
amount and timing of distributions are determined in accordance with federal
income tax regulations, which may differ from generally accepted accounting
principles. Accordingly, temporary over-distributions as a result of these
differences may occur and will be classified as either distributions in excess
of net investment income, distributions in excess of net realized gains and/or
distributions in excess of net ordinary taxable income from investment
transactions, where applicable.
<PAGE>
Preferred Shares
The Funds below have issued and outstanding $25,000 stated value Preferred
shares. Each Fund's Preferred shares are issued in one or more Series. The
dividend rate on each series may change every seven days, as set by the auction
agent. The number of shares outstanding, by Series and in total, for each Fund
is as follows:
<TABLE>
<CAPTION>
California California California
Performance Plus Opportunity Investment Quality
<S> <C> <C> <C>
Number of shares:
Series M -- -- 3,600
Series T 1,800 -- --
Series W -- 2,200 --
Series Th -- -- --
Series F 1,800 -- --
----- ----- -----
Total 3,600 2,200 3,600
===== ===== =====
<CAPTION>
California California
Select Quality Quality Income
<S> <C> <C>
Number of shares:
Series M -- --
Series T 2,400 --
Series W -- 3,000
Series Th 3,600 --
Series F -- 3,000
----- -----
Total 6,000 6,000
===== =====
</TABLE>
Derivative Financial Instruments
The Funds may invest in transactions in certain derivative financial instruments
including futures, forward, swap, option contracts, and other financial
instruments with similar characteristics. Although the Funds are authorized to
invest in such financial instruments, and may do so in the future, they did not
make any such investments during the fiscal year ended August 31, 1997.
Use of Estimates
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of increases and decreases in net
assets from operations during the reporting period.
<PAGE>
<TABLE>
2. FUND SHARES
Transactions in Common shares were as follows:
<CAPTION>
California Value California Performance Plus California Opportunity
Year ended Year ended Year ended Year ended Year ended Year ended
8/31/97 8/31/96 8/31/97 8/31/96 8/31/97 8/31/96
<S> <C> <C> <C> <C> <C> <C>
Common shares:
Shares issued in acquisition
of California Income
(note 1) -- 6,045,848 -- -- -- --
Shares issued to shareholder
due to reinvestment
of distributions 83,152 99,248 99,470 53,371 46,625 18,092
------ --------- ------ ------ ------ ------
Net increase 83,152 6,145,096 99,470 53,371 46,625 18,092
====== ========= ====== ====== ====== ======
<CAPTION>
California Investment Quality California Select Quality California Quality Income
Year ended Year ended Year ended Year ended Year ended Year ended
8/31/97 8/31/96 8/31/97 8/31/96 8/31/97 8/31/96
<S> <C> <C> <C> <C> <C> <C>
Common shares:
Shares issued in acquisition
of California Income
(note 1) -- -- -- -- -- --
Shares issued to shareholder
due to reinvestment
of distributions 96,114 70,332 136,425 72,263 84,978 25,141
------ ------ ------- ------ ------ ------
Net increase 96,114 70,332 136,425 72,263 84,978 25,141
====== ====== ======= ====== ====== ======
</TABLE>
3. DISTRIBUTIONS TO COMMON SHAREHOLDERS
On September 2, 1997, the Funds declared Common share dividend distributions
from their tax-exempt net investment income which were paid October 1, 1997, to
shareholders of record on September 15, 1997, as follows:
<TABLE>
<CAPTION>
California California California
Value Performance Plus Opportunity
<S> <C> <C> <C>
Dividend per share $.0480 $.0860 $.0845
====== ====== ======
<CAPTION>
California California California
Investment Quality Select Quality Quality Income
<S> <C> <C> <C>
Dividend per share $.0825 $.0820 $.0815
====== ====== ======
</TABLE>
<PAGE>
4. SECURITIES TRANSACTIONS
Purchases and sales (including maturities) of investments in municipal
securities and temporary municipal investments during the fiscal year ended
August 31, 1997, were as follows:
<TABLE>
<CAPTION>
California California California
Value Performance Plus Opportunity
<S> <C> <C> <C>
Purchases:
Investments in municipal securities $43,013,178 $32,870,471 $ 8,134,400
Temporary municipal investments 24,905,000 10,250,000 12,500,000
Sales and Maturities:
Investments in municipal securities 47,784,049 34,432,102 7,325,050
Temporary municipal investments 27,170,000 9,750,000 12,400,000
=========== =========== ===========
<CAPTION>
California California California
Investment Quality Select Quality Quality Income
<S> <C> <C> <C>
Purchases:
Investments in municipal securities $36,215,048 $22,443,465 $41,081,862
Temporary municipal investments 25,100,000 18,825,000 19,860,000
Sales and Maturities:
Investments in municipal securities 33,447,575 22,137,343 40,174,712
Temporary municipal investments 26,225,000 15,150,000 19,260,000
=========== =========== ===========
</TABLE>
At August 31, 1997, the identified cost of investments owned for federal income
tax purposes was the same as the cost for financial reporting purposes for each
Fund.
At August 31, 1997, California Quality Income had an unused capital loss
carryover of $106,369 available for federal income tax purposes to be applied
against future capital gains, if any. If not applied, the carryover will expire
in the year 2005. None of the other funds had any capital loss carryovers.
<PAGE>
5. UNREALIZED APPRECIATION (DEPRECIATION)
Gross unrealized appreciation and gross unrealized depreciation of investments
at August 31, 1997, were as follows:
<TABLE>
<CAPTION>
California California California
Value Performance Plus Opportunity
Gross unrealized:
<S> <C> <C> <C>
appreciation $15,857,436 $20,576,151 $16,410,248
depreciation (116,770) -- (3,920)
----------- ----------- -----------
Net unrealized appreciation $15,740,666 $20,576,151 $16,406,328
=========== =========== ===========
<CAPTION>
California California California
Investment Quality Select Quality Quality Income
<S> <C> <C> <C>
Gross unrealized:
appreciation $22,512,395 $37,638,188 $40,581,131
depreciation (21,185) (6,681) --
----------- ----------- -----------
Net unrealized appreciation $22,491,210 $37,631,507 $40,581,131
=========== =========== ===========
</TABLE>
6. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Under California Value's investment management agreement with Nuveen Advisory
Corp. ("the Adviser"), a wholly owned subsidiary of The John Nuveen Company, the
Fund pays an annual management fee, payable monthly of .35 of 1% of the average
daily net asset value of the Fund, as well as 4.125% of the gross interest
income of the Fund.
Under the Fund's (excluding California Value) investment management agreements
with the Adviser, each Fund pays an annual management fee, payable monthly, at
the rates set forth below, which are based upon the average daily net asset
value of each Fund as follows:
<TABLE>
<CAPTION>
Average daily net asset value Management fee
<S> <C>
For the first $125 million .6500 of 1%
For the next $125 million .6375 of 1
For the next $250 million .6250 of 1
For the next $500 million .6125 of 1
For the next $1 billion .6000 of 1
For net assets over $2 billion .5875 of 1
</TABLE>
The fee compensates the Adviser for overall investment advisory and
administrative services and general office facilities. The Funds pay no
compensation directly to those Directors who are affiliated with the Adviser or
to their officers, all of whom receive remuneration for their services to the
Funds from the Adviser.
<PAGE>
7. COMPOSITION OF NET ASSETS
At August 31, 1997, net assets consisted of:
<TABLE>
<CAPTION>
California California California
Value Performance Opportunity
Plus
<S> <C> <C> <C>
Preferred shares, $25,000 stated value per share,
at liquidation value $ N/A $ 90,000,000 $ 55,000,000
Common shares, $.01 par value per share 252,002 125,680 79,358
Paid-in surplus 237,148,415 175,146,990 110,376,175
Balance of undistributed net investment income 173,109 848,071 364,713
Accumulated net realized gain (loss) from
investment transactions 854,114 239,363 52,647
Net unrealized appreciation of investments 15,740,666 20,576,151 16,406,328
------------ ------------ ------------
Net assets $254,168,306 $286,936,255 $182,279,221
============ ============ ============
Authorized shares:
Common 250,000,000 200,000,000 200,000,000
Preferred N/A 1,000,000 1,000,000
============ ============ ============
<CAPTION>
California California California
Investment Quality Select Quality
Quality Income
<S> <C> <C> <C>
Preferred shares, $25,000 stated value per share,
at liquidation value $ 90,000,000 $ 150,000,000 $ 150,000,000
Common shares, $.01 par value per share 132,041 225,309 214,403
Paid-in surplus 184,014,733 313,621,872 297,857,008
Balance of undistributed net investment income 618,512 781,209 1,415,172
Accumulated net realized gain (loss) from
investment transactions 23,623 387,680 (106,369)
Net unrealized appreciation of investments 22,491,210 37,631,507 40,581,131
------------- ------------- -------------
Net assets $ 297,280,119 $ 502,647,577 $ 489,961,345
------------- ------------- -------------
Authorized shares:
Common 200,000,000 200,000,000 200,000,000
Preferred 1,000,000 1,000,000 1,000,000
============= ============= =============
</TABLE>
<PAGE>
Financial Highlights
Selected data for a common share outstanding throughout each period is as
follows:
<TABLE>
Dividends from tax-exempt
Operating performance net investment income
Net asset Net realized
value Net and unrealized
beginning investment gain (loss) To Common To Preferred
of period income from investments Shareholders Shareholders+
<S> <C> <C> <C> <C> <C>
California Value
Year ended 8/31:
1997 $10.03 $ .59 $ .15 $(.59) $N/A
1996 10.20 .61 (.10) (.62) N/A
1995 10.20 .64 .04 (.67) N/A
1994 10.74 .65 (.51) (.67) N/A
1993 10.48 .67 .26 (.67) N/A
One month ended
8/31/92 10.61 .06 (.13) (.06) N/A
Year ended 7/31:
1992 10.25 .67 .37 (.66) N/A
1991 10.12 .67 .12 (.66) N/A
1990 10.19 .66 (.03) (.67) N/A
1989 9.67 .66 .61 (.67) N/A
10/7/87 to
7/31/88 9.35 .48 .26 (.42) N/A
<CAPTION>
California Performance Plus
<S> <C> <C> <C> <C> <C>
Year ended 8/31:
1997 15.41 1.27 .26 (1.03) (.22)
1996 15.45 1.28 (.04) (1.03) (.25)
1995 15.24 1.28 .28 (1.03) (.29)
1994 16.38 1.30 (1.13) (1.06) (.25)
1993 15.58 1.33 .85 (1.15) (.23)
Ten months ended
8/31/92 14.88 1.13 .64 (.87) (.20)
Year ended
10/31/91 13.82 1.37 1.05 (1.02) (.34)
11/15/89 to
10/31/90 14.05 1.10 (.09) (.77) (.27)
<CAPTION>
California Opportunity
<S> <C> <C> <C> <C> <C>
Year ended 8/31:
1997 15.57 1.25 .45 (1.01) (.22)
1996 15.64 1.25 (.03) (1.02) (.23)
1995 15.32 1.27 .36 (1.05) (.26)
1994 16.59 1.27 (1.26) (1.07) (.21)
1993 15.58 1.31 1.05 (1.16) (.19)
Ten months ended
8/31/92 14.95 1.11 .58 (.87) (.19)
Year ended
10/31/91 13.76 1.35 1.19 (1.02) (.33)
5/17/90 to
10/31/90 14.05 .44 (.12) (.26) (.11)
<PAGE>
<CAPTION>
Distributions from
capital gains
Organization and
offering costs and Per common
Preferred share Net asset share
To Common To Preferred underwriting value market value
Shareholders Shareholders+ discounts end of period end of period
<S> <C> <C> <C> <C> <C>
California Value
Year ended 8/31:
1997 $(.09) $N/A $-- $10.09 $10.1875
1996 (.06) N/A -- 10.03 10.1250
1995 (.01) N/A -- 10.20 9.6250
1994 (.01) N/A -- 10.20 11.0000
1993 -- N/A -- 10.74 11.7500
One month ended
8/31/92 -- N/A -- 10.48 11.0000
Year ended 7/31:
1992 (.02) N/A -- 10.61 11.2500
1991 -- N/A -- 10.25 10.6250
1990 (.03) N/A -- 10.12 10.3750
1989 (.08) N/A -- 10.19 10.3750
10/7/87 to
7/31/88 -- N/A -- 9.67 10.0000
<CAPTION>
California Performance Plus
<S> <C> <C> <C> <C> <C>
Year ended 8/31:
1997 (.02) -- -- 15.67 17.2500
1996 -- -- -- 15.41 15.7500
1995 (.02) (.01) -- 15.45 14.7500
1994 -- -- -- 15.24 15.0000
1993 -- -- -- 16.38 17.5000
Ten months ended
8/31/92 -- -- -- 15.58 15.8750
Year ended
10/31/91 -- -- -- 14.88 15.7500
11/15/89 to
10/31/90 -- -- (.20) 13.82 14.3750
<CAPTION>
California Opportunity
<S> <C> <C> <C> <C> <C>
Year ended 8/31:
1997 -- -- -- 16.04 16.6875
1996 (.03)+++ (.01)+++ -- 15.57 15.8750
1995 -- -- -- 15.64 15.0000
1994 -- -- -- 15.32 15.3750
1993 -- -- -- 16.59 17.8750
Ten months ended
8/31/92 -- -- -- 15.58 16.1250
Year ended
10/31/91 -- -- -- 14.95 15.6250
5/17/90 to
10/31/90 -- -- (.24) 13.76 14.5000
<PAGE>
<CAPTION>
Ratio/Supplemental data
Ratio of net
Total Ratio of investment
investment Total return Net assets expenses to income to Portfolio
return on on net end of period average average turnover
market value** asset value** (in thousands) net assets++ net assets++ rate
<S> <C> <C> <C> <C> <C> <C>
California Value
Year ended 8/31:
1997 7.59% 7.55% $254,168 .74% 5.85% 17%
1996 12.52 5.16 251,948 .77 6.00 23
1995 (6.59) 6.92 193,426 .75 6.32 9
1994 (.50) 1.32 192,237 .76 6.24 9
1993 13.37 9.21 200,828 .82 6.31 4
One month ended
8/31/92 (1.74) (.71) 194,430 .79* 6.25* --
Year ended 7/31:
1992 12.83 10.61 196,669 .83 6.46 6
1991 9.22 8.13 188,370 .88 6.62 5
1990 7.10 6.45 184,888 .91 6.62 2
1989 11.82 13.70 185,016 .94 6.75 27
10/7/87 to
7/31/88 4.28 8.01 174,645 .94* 6.29* 32
<CAPTION>
California Performance Plus
<S> <C> <C> <C> <C> <C> <C>
Year ended 8/31:
1997 16.71 8.77 286,936 .81 5.59 12
1996 14.04 6.53 282,104 .80 5.62 14
1995 5.75 8.75 281,766 .83 5.77 24
1994 8.34) (.48) 279,175 .83 5.63 19
1993 18.34 13.03 291,618 .81 5.73 10
Ten months ended
8/31/92 6.55 10.86 279,810 .79* 5.99* 6
Year ended
10/31/91 17.20 15.58 269,890 .78 6.28 6
11/15/89 to
10/31/90 1.00 3.92 255,862 .79* 6.18* 26
<CAPTION>
California Opportunity
<S> <C> <C> <C> <C> <C> <C>
Year ended 8/31:
1997 11.83 9.79 182,279 .82 5.46 4
1996 13.10 6.31 177,862 .82 5.47 8
1995 .72 9.43 178,072 .83 5.73 36
1994 (8.20) (1.27) 175,325 .87 5.51 24
1993 19.00 14.54 184,305 .82 5.69 8
Ten months ended
8/31/92 9.10 10.32 175,292 .79* 5.95* 2
Year ended
10/31/91 15.27 16.62 169,554 .80 6.25 --
5/17/90 to
10/31/90 (1.65) (.23) 159,754 .83* 5.63* 14
See notes on page 60.
</TABLE>
<PAGE>
<TABLE>
Financial Highlights - continued
Dividends from tax-exempt
Operating performance net investment income
Net asset Net realized
value Net and unrealized
beginning investment gain (loss) To Common To Preferred
of period income from investments Shareholders Shareholders+
<S> <C> <C> <C> <C> <C>
California Investment Quality
Year ended 8/31:
1997 $15.37 $1.22 $ .32 $ (.99) $(.22)
1996 15.37 1.24 -- (1.02) (.22)
1995 15.20 1.25 .22 (1.04) (.26)
1994 16.44 1.26 (1.19) (1.12) (.17)
1993 15.47 1.30 .99 (1.15) (.17)
Ten months ended
8/31/92 14.70 1.10 .72 (.85) (.20)
11/20/90 to
10/31/91 14.05 1.02 .77 (.76) (.19)
<CAPTION>
California Select Quality
<S> <C> <C> <C> <C> <C>
Year ended 8/31:
1997 15.19 1.19 .52 (.98) (.20)
1996 15.23 1.19 .09 (.98) (.21)
1995 14.96 1.21 .35 (.99) (.25)
1994 16.44 1.21 (1.43) (1.05) (.18)
1993 14.93 1.24 1.57 (1.06) (.19)
Ten months ended
8/31/92 14.41 1.04 .49 (.82) (.19)
5/22/91 to
10/31/91 14.05 .34 .45 (.24) (.03)
<CAPTION>
California Quality Income
<S> <C> <C> <C> <C> <C>
Year ended 8/31:
1997 15.24 1.20 .62 (.98) (.22)
1996 15.05 1.20 .21 (.96) (.23)
1995 14.68 1.21 .39 (.96) (.27)
1994 15.92 1.20 (1.20) (1.00) (.21)
1993 14.50 1.20 1.43 (1.00) (.18)
11/20/91 to
8/31/92 14.05 .66 .55 (.53) (.06)
<PAGE>
<CAPTION>
Distributions from
capital gains
Organization and
offering costs and Per common
Preferred share Net asset share
To Common To Preferred underwriting value market value
Shareholders Shareholders+ discounts end of period end of period
<S> <C> <C> <C> <C> <C>
California Investment Quality
Year ended 8/31:
1997 $-- $-- $ -- $15.70 $16.5000
1996 -- -- -- 15.37 15.6250
1995 -- -- -- 15.37 15.0000
1994 (.02) -- -- 15.20 15.5000
1993 -- -- -- 16.44 17.0000
Ten months ended
8/31/92 -- -- -- 15.47 16.0000
11/20/90 to
10/31/91 -- -- (.19) 14.70 15.6250
<CAPTION>
California Select Quality
<S> <C> <C> <C> <C> <C>
Year ended 8/31:
1997 (.06) (.01) -- 15.65 16.4375
1996 (.10) (.03) -- 15.19 15.5000
1995 (.04) (.01) -- 15.23 14.3750
1994 (.03) -- -- 14.96 14.4380
1993 (.04) (.01) -- 16.44 16.7500
Ten months ended
8/31/92 -- -- -- 14.93 15.1250
5/22/91 to
10/31/91 -- -- (.16) 14.41 15.0000
<CAPTION>
California Quality Income
<S> <C> <C> <C> <C> <C>
Year ended 8/31:
1997 -- -- -- 15.86 16.2500
1996 (.02)+++ (.01)+++ -- 15.24 15.0000
1995 -- -- -- 15.05 14.2500
1994 (.02) (.01) -- 14.68 14.0000
1993 (.03) -- -- 15.92 16.0000
11/20/91 to
8/31/92 -- -- (.17) 14.50 14.5000
<PAGE>
<CAPTION>
Ratio/Supplemental data
Ratio of net
Total Ratio of investment
investment Total return Net assets expenses to income to Portfolio
return on on net end of period average average turnover
market value** asset value** (in thousands) net assets++ net assets++ rate
<S> <C> <C> <C> <C> <C> <C>
California Investment Quality
Year ended 8/31:
1997 12.32% 8.82% $297,280 .80% 5.44% 12%
1996 11.08 6.72 291,423 .81 5.51 10
1995 3.77 8.38 290,426 .81 5.72 14
1994 (2.10) (.64) 287,504 .82 5.53 18
1993 14.00 14.29 301,948 .78 5.69 13
Ten months ended
8/31/92 8.13 11.40 287,619 .76* 5.96* --
11/20/90 to
10/31/91 9.49 10.33 276,571 .78* 5.85* 18
<CAPTION>
California Select Quality
<S> <C> <C> <C> <C> <C> <C>
Year ended 8/31:
1997 13.22 10.17 502,648 .78 5.36 5
1996 15.73 6.95 490,214 .79 5.38 13
1995 7.14 9.22 489,967 .80 5.66 12
1994 (7.60) (2.52) 483,986 .81 5.43 15
1993 18.89 18.24 515,938 .84 5.57 9
Ten months ended
8/31/92 6.53 9.54 480,490 .79* 5.78* 14
5/22/91 to
10/31/91 1.62 4.31 467,392 .75* 5.13* 3
<CAPTION>
California Quality Income
<S> <C> <C> <C> <C> <C> <C>
Year ended 8/31:
1997 15.19 10.74 489,961 .79 5.31 8
1996 12.32 7.89 475,498 .79 5.37 6
1995 9.24 9.57 471,064 .80 5.63 29
1994 (6.27) (1.41) 463,200 .80 5.35 12
1993 18.22 17.56 489,215 .82 5.44 13
11/20/91 to
8/31/92 .29 7.06 457,950 .76* 5.05* 16
<FN>
N/A - Fund is not authorized to issue Preferred shares.
* Annualized.
** Total Investment Return on Market Value is the combination of reinvested
dividend income, reinvested capital gains distributions, if any, and changes in
stock price per share. Total Return on Net Asset Value is the combination of
reinvested dividend income, reinvested capital gains distributions, if any, and
changes in net asset value per share. Total returns are not annualized.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to preferred
shareholders.
+++ The amounts shown include distributions in excess of capital gains of
$.011 for Common shareholders and $.003 for Preferred shareholders of NCO and
$.007 for Common shareholders and $.002 for Preferred shareholders of NUC.
</FN>
</TABLE>
<PAGE>
Independent Auditor's Report
THE BOARD OF DIRECTORS AND SHAREHOLDERS
NUVEEN CALIFORNIA MUNICIPAL VALUE FUND, INC.
NUVEEN CALIFORNIA PERFORMANCE PLUS MUNICIPAL FUND, INC.
NUVEEN CALIFORNIA MUNICIPAL MARKET OPPORTUNITY FUND, INC.
NUVEEN CALIFORNIA INVESTMENT QUALITY MUNICIPAL FUND, INC.
NUVEEN CALIFORNIA SELECT QUALITY MUNICIPAL FUND, INC.
NUVEEN CALIFORNIA QUALITY INCOME MUNICIPAL FUND, INC.
We have audited the accompanying statements of net assets, including the
portfolios of investments, of Nuveen California Municipal Value Fund, Inc.,
Nuveen California Performance Plus Municipal Fund, Inc., Nuveen California
Municipal Market Opportunity Fund, Inc., Nuveen California Investment Quality
Municipal Fund, Inc., Nuveen California Select Quality Municipal Fund, Inc. and
Nuveen California Quality Income Municipal Fund, Inc. as of August 31, 1997, and
the related statements of operations, changes in net assets and the financial
highlights for the periods indicated therein. These financial statements and
financial highlights are the responsibility of the Funds' management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of investments owned as of
August 31, 1997, by correspondence with the custodian and brokers. An audit also
includes assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial positions of
Nuveen California Municipal Value Fund, Inc., Nuveen California Performance Plus
Municipal Fund, Inc., Nuveen California Municipal Market Opportunity Fund, Inc.,
Nuveen California Investment Quality Municipal Fund, Inc., Nuveen California
Select Quality Municipal Fund, Inc. and Nuveen California Quality Income
Municipal Fund, Inc. at August 31, 1997, and the results of their operations,
changes in their net assets and financial highlights for the periods indicated
therein in conformity with generally accepted accounting principles.
Ernst & Young LLP
Chicago, Illinois
October 16, 1997
<PAGE>
Fund Information
Board of Directors
Robert P. Bremmer
Lawrence H. Brown
Anthony T. Dean
Anne E. Impellizzeri
Peter R. Sawers
William J. Schneider
Timothy R. Schwertfeger
Judith M. Stockdale
Fund Manager
Nuveen Advisory Corp.
333 West Wacker Drive
Chicago, IL 60606
Custodian
The Chase Manhattan Bank
4 New York Plaza
New York, NY 10004-2413
Legal Counsel
Fried, Frank, Harris,
Shriver & Jacobson
Washington, D.C.
Independent Auditors
Ernst & Young LLP
Chicago, Illinois
<PAGE>
Nuveen makes reinvesting easy. A phone call is all it takes to set up your
reinvestment account.
(continued from inside front cover)
before purchases are completed, the average purchase price per share may exceed
the market price at the time of valuation resulting in the acquisition of fewer
shares than if the dividend or distribution had been paid in shares issued by
the fund. A pro rata portion of any applicable brokerage commissions on open
market purchases will be paid by Plan participants. These commissions usually
will be lower than those charged on individual transactions.
Flexibility
You may, of course, change your distribution option or withdraw from the Plan at
any time, should your needs or situation change. Should you withdraw, you can
receive a certificate for all whole shares credited to your reinvestment account
and cash payment for fractional shares, or cash payment for all reinvestment
account shares, less brokerage commissions and a $2.50 service fee.
You can also reinvest if your shares are registered in the name of a brokerage
firm, bank, or other nominee. Just ask your investment adviser if the firm will
participate on your behalf. If not, it's easy to have the shares registered in
your name and to apply for a reinvestment account directly. Participants whose
shares are registered in the name of one firm may not be able to transfer the
shares to another firm and continue to participate in the Plan.
The Fund reserves the right to amend or terminate the Plan at any time. Although
the Fund reserves the right to amend the Plan to include a service charge
payable by the participants, there is no direct service charge to participants
in the Plan at this time.
For more information on the Nuveen Automatic Reinvestment Plan or to enroll in
or withdraw from the Plan, speak with your financial adviser or call us
toll-free at (800) 257-8787.
<PAGE>
Serving Investors for Generations
Photo of: John Nuveen, Sr.
Since our founding in 1898, John Nuveen &Co. has been synonymous with
investments that withstand the test of time. Today, we offer a broad range of
investments designed for mature investors whose portfolios are the principal
source of their ongoing financial security. More than 1.3 million investors have
trusted Nuveen to help them maintain the lifestyle they currently enjoy.
A value investing approach - purchasing securities of strong companies and
communities that represent good long-term value - is the cornerstone of Nuveen's
investment philosophy. It is a careful, long-term strategy that offers the
potential for attractive returns with moderated risk. Successful value investing
begins with in-depth research and a discerning eye for marketplace opportunity.
Nuveen's team of investment professionals is backed by the discipline, resources
and expertise of almost a century of investment experience, including one of the
most recognized research departments in the industry.
To meet the unique circumstances and financial planning needs of mature
investors, Nuveen offers a wide array of equity and fixed-income mutual funds,
unit trusts, exchange-traded funds, individual managed account services, and
cash management products, including many that generate tax-free income.
To find out more about how Nuveen investment products and services can help you
preserve your financial security, talk with your financial adviser, or call us
at (800) 257-8787 for more information, including a prospectus where applicable.
Please read that information carefully before you invest.
NUVEEN LOGO
John Nuveen & Co. Incorporated
333 West Wacker Drive
Chicago, IL 60606-1286
(800) 257-8787
www.nuveen.com
FAN-1-8.97
