Nuveen
Exchange-Traded Funds
August 31, 1998
Annual Report
Dependable, tax-free income to help you keep more of what you earn.
NCA
NCP
NCO
NQC
NVC
NUC
California
Photo of: People walking along beach.
<PAGE>
Highlights
As of August 31, 1998
* For investors in the combined 37.4% federal and state income tax bracket.
**Overall rating within the municipal bond category for the period ended August
31, 1998. Morningstar proprietary ratings reflect historical risk-adjusted
performance and are subject to change every month. Ratings are calculated from
a fund`s three-, five- and ten-year average annual returns in excess of 90-day
Treasury bill returns, with appropriate fee adjustments and a risk factor that
reflects fund performance below 90-day Treasury bill returns. NQC and NCP
earned 4 stars for the 3-year period and 5 stars for the five-year period
ended August 31, 1998. NCO and NVC earned 4 stars for the 3-year and 5-year
period ended August 31, 1998. NCA earned 5 stars, 5 stars, and 4 stars for
each of the 3-, 5-, and 10 year periods ended August 31, 1998. NUC earned 5
stars for the 3-year periods and 4 stars for the 5-year period ended August
31, 1998. 10% of the funds receive five stars and 22.5% receive four stars. In
an investment category, 10% of the funds receive 5 stars and 22.5% receive 4
stars. 195 funds were rated for the 3-year period, 182 for the five-year
period, and 13 for the 10-year period, each ending August 31, 1998.
Contents
1 Dear Shareholder
3 Portfolio Manager's Comments
5 NCA Performance Overview
6 NCP Performance Overview
7 NCO Performance Overview
8 NQC Performance Overview
9 NVC Performance Overview
10 NUC Performance Overview
11 Report of Independent Auditors
12 Portfolio of Investments
37 Statement of Net Assets
38 Statement of Operations
39 Statement of Changes in Net Assets
41 Notes to Financial Statements
45 Financial Highlights
48 Building Better Portfolios
49 Fund Information
================================================================================
Nuveen California Municipal Value Fund, Inc. (NCA)
o Taxable-equivalent yield of 8.12% *
o One-year total return on net asset value
of 8.90%
o HHHHH Five-star rating by Morningstar **
Pie Chart:
AAA/U.S. Guaranteed 70%
AA 6%
A 3%
BBB/NR 21%
Nuveen California Performance Plus Municipal Fund, Inc. (NCP)
o Taxable-equivalent yield of 9.15% *
o One-year total return on net asset value
of 8.93%.
o HHHHH Five-star rating by Morningstar **
Pie Chart:
AAA/U.S. Guaranteed 46%
AA 9%
A 19%
BBB/NR 26%
Nuveen California Municipal Market Opportunity Fund, Inc. (NCO)
o Taxable-equivalent yield of 9.19% *
o One-year total return on net asset value
of 9.36%
o HHHH Four-star rating by Morningstar **
Pie Chart:
AAA/U.S. Guaranteed 52%
AA 5%
A 15%
BBB/NR 28%
Nuveen California Investment Quality Municipal Fund, Inc. (NQC)
o Taxable-equivalent yield of 9.03% *
o One-year total return on net asset value
of 8.66%
o HHHHH Five-star rating by Morningstar **
Pie Chart:
AAA/U.S. Guaranteed 48%
AA 5%
A 21%
BBB/NR 26%
Nuveen California Select Quality Municipal Fund, Inc. (NVC)
o Taxable-equivalent yield of 9.04% *
o One-year total return on net asset value
of 8.93%
o HHHH Four-star rating by Morningstar **
Pie Chart:
AAA/U.S. Guaranteed 46%
AA 16%
A 27%
BBB/NR 11%
Nuveen California Quality Income Municipal Fund, Inc. (NUC)
o Taxable-equivalent yield of 8.99% *
o One-year total return on net asset value
of 9.65%
o HHHH Four-star rating by Morningstar **
Pie Chart:
AAA/U.S. Guaranteed 43%
AA 11%
A 33%
BBB/NR 13%
<PAGE>
Photo of: Timothy R. Schwertfeger
Chairman of the Board
Sidebar text: Wealth takes a lifetime to build. Once achieved, it should
be preserved.
Dear Shareholder
I'm pleased to report that over the past 12 months, the Nuveen California
Exchange-Traded Funds have continued to perform well, meeting their primary
objective of providing you with competitive levels of tax-free income. The
strong market in fixed-income securities, bolstered by investor demand for
quality investments such as these, benefited the funds and led to generally
higher share prices over the past year. Competitive tax-free income, enhanced by
strong share price performance, illustrates once again that municipal bonds
provide an excellent investment for income-oriented investors.
THE ECONOMY IN REVIEW
Over the past year, the markets endured bouts of volatility, as the Asian
financial crisis spilled over into emerging markets and affected economies
around the globe. Investors responded by seeking a haven from the ongoing
uncertainty in more conservative investments, such as municipal bond funds. As
interest rates on municipal bonds continued to trend downward, the competitive
yields offered by these funds stimulated additional investor interest.
As a result, the market for exchange-traded municipal bond funds has been
exceptionally strong. Exchange-traded funds continue to represent a bright spot
among fixed-income investments. These funds have paid competitive current market
yields in a market that places a high premium on yield. In addition, the funds
have generally maintained excellent levels of call protection, resulting in
relatively stable income streams. Bond calls may occur in these portfolios,
however, resulting in a dividend reduction for the fund. But, the very nature of
exchange-traded funds helps them retain call protection and competitive yields
because, unlike mutual funds, exchange-traded funds can focus on maintaining a
fully invested portfolio without the need to raise cash for redemption
requirements. These qualities have generated strong demand for most of the
funds, which should lead to improved share prices overall.
In the coming months, we will continue to watch several key factors affecting
the future of the economy, including the strength of the dollar, employment
figures, corporate earnings reports, and further interest rate indications from
the Federal Reserve. These factors will influence the outlook for fixed-income
markets during the remainder of the year.
MUNICIPAL MARKET REVIEW
Over the past year, the declining interest rate environment drove yields on
30-year Treasuries to their lowest levels since the U.S. government began
selling these bonds in 1977. The story in the municipal market, however, was
quite different. As yields on the long Treasury bond reached historic lows, the
yield on the Bond Buyer 40, an unmanaged index of long-term municipal bonds,
fell just 42 basis points - from 5.53% to 5.11% - compared with the dramatic
134-point drop in Treasury yields over the past 12 months. As of August 31,
1998, the ratio between Treasury yields and municipal yields stood at 92%,
compared with the more typical range of 80-82%. For investors, this means that
municipal bonds offered 92% of the yield of a Treasury bond with comparable
characteristics - before taxes are taken into account.
<PAGE>
One of the main factors in the steep decline in Treasury yields was the strong
interest in these investments by both international and conservative investors.
As problems in Asia continued to spread and the dollar strengthened against
foreign currencies, the demand for U.S.-dollar denominated Treasury securities
increased overseas. Similarly, conservative investors made a "flight to quality"
in search of shelter from global concerns by moving assets into high-quality
U.S. Treasury bonds. In addition, the federal budget surplus resulted in a
cutback in issuance at that level, leaving fewer bonds to meet the strong
demand.
In the municipal market, where foreign demand was limited by the inapplicability
of tax advantages, low interest rates and a strong economy combined to generate
high levels of new issuance and a dramatic increase in the refinancing of
existing bonds. The first six months of 1998 saw $146 billion of new municipal
bond issuance, up 51% over the same period in 1997, and $42 billion in refunding
activity, an increase of 118% from last year. The continued strength of the U.S.
economy has brought about improvements in the fundamental financial health of
many municipalities and boosted the overall credit quality of municipal bonds.
This enhanced credit quality also contributed to the funds' performance, as the
upgraded bonds increased in value.
NUVEEN EXPERTISE IS KEY
The key to taking advantage of the exceptional values currently available in the
municipal market is the expertise of a proven investment manager. At Nuveen, we
recognize the value of time-tested expertise. The high level of recent municipal
issuance, for example, highlights the value of our expertise in the municipal
market, as our portfolio management teams carefully analyze the flood of issues
to select those securities best suited to helping the funds achieve their
investment objectives.
Nuveen has assembled a group of Premier AdvisersSM that can provide years of
experience and time-tested expertise in a given asset class. In addition to
Nuveen Advisory Corporation, our Premier Adviser for tax-free investing, you can
rely on our growing group of other advisers to provide the expertise that makes
the difference in the equity market, including Institutional Capital Corporation
for value investing and Rittenhouse Financial Services for growth investing. For
more information about our funds managed by other Nuveen Premier Advisers,
including charges and expenses, contact your financial adviser for a prospectus
or Nuveen at (800) 621-7227. Read it carefully before you invest or send money.
We encourage you to talk with your financial adviser about the ways Nuveen's
expanding selection of investments, together with our expertise, can help you
establish the foundation of a diversified portfolio designed to build and
sustain long-term financial security. When seeking quality investment solutions
that withstand the test of time, you can count on Nuveen. Our expertise provides
the key to building a well-balanced portfolio that can help you achieve your
financial goals.
Sincerely,
Timothy R. Schwertfeger
Chairman of the Board
October 15, 1998
Sidebar text: "Our expertise provides the key to building a well-balanced
portfolio that can help you achieve your financial goals."
<PAGE>
Nuveen California Municipal Fund
Portfolio Manager's Comments
Portfolio manager Bill Fitzgerald discusses the California municipal market,
recent fund performance, and key investment strategies for the Nuveen California
exchange-traded funds. As part of our efforts to enhance the efficient use of
staff resources and portfolio manager expertise, Bill recently added portfolio
management responsibilities for the California Value and California Select
Quality funds to his duties as manager of Nuveen's other California
exchange-traded funds. Bill has over a decade of experience as an investment
professional at Nuveen.
CALIFORNIA STATE UPDATE
The California economy has continued to expand, as it diversifies away from a
reliance on aerospace and defense spending into a variety of sectors, including
service industries, high technology, and financial services. This
diversification has broadened the state's economic base and strengthened its
position by reducing the risk that a downturn in one industry will result in
recession for the entire state, as happened in the early 1990s. While
California's heavy use of Asian intermediaries in the manufacturing process has
caused recent concern about a potential slowdown in some industries, in light of
Asia's recent financial troubles, the overall picture is strong. Employment has
reached levels unseen since before the recession, and the state government is in
good shape fiscally, with improved cash flows and a positive balance sheet. With
increasing state revenues, California is now trying to remedy some of the
financial stress it placed on cities and counties during the recession when it
took over local revenue and passed along expenses. The state's improving credit
was recently recognized with an upgrade by one rating agency, and California
bonds are already trading at prices above what their current credit rating of A+
might warrant.
In response to low interest rates, the expanding economy, and California's
continued population growth, the state's municipal bond issuance during the
first eight months of 1998 increased by 65% over the same period in 1997.
Issuance by the land-based financing sector has been particularly strong, as
real estate values in the state continue to improve and development activity
accelerates in this favorable environment. Supply is expected to remain heavy
over the next few years due to the continuing need for infrastructure financing,
increased school spending, and new prison construction. In recent months,
volatility in the equity markets, combined with the high level of California
taxes, has boosted demand for municipal bonds. Demand from institutional buyers
such as insurance companies and hedge funds has also increased, as these
investors recognize the exceptionally attractive values currently offered by
these bonds.
FUND PERFORMANCE
For the year ended August 31, 1998, the Nuveen California exchange-traded funds
produced total returns on net asset value that ranged from 8.66% to 9.65%,
providing taxable-equivalent returns of 12.14% to 13.43% for investors in the
combined 37.4% federal and state income tax bracket. The funds' total returns
compare favorably with the Lehman Brothers California Municipal Bond Index's
annual return of 8.91%. Our bond buying strategy led to performance comparable
to that of the index, but with less risk. In recognition of this strong
risk-adjusted performance, three of the California funds were awarded five-star
ratings by Morningstar, while the other three received four-star ratings.
Much of the funds' performance over the past 12 months can be tied to duration.
As interest rates trended downward, funds with durations longer than the
unleveraged Lehman index's 7.95 years generally tended to outperform the market.
Duration measures a bond fund's price volatility, or reaction to interest rate
movements. The longer the duration, the more sensitive the fund is to changes in
interest rates. During a period of falling interest rates, longer duration
enables a fund to participate more fully in market gains. However, when rates
rise, longer duration can make the fund more vulnerable to potential price
declines.
In the low interest rate environment of the past year, good call protection
helped support the dividends of the California Performance Plus, California
Opportunity, and California Quality Income funds (NCP, NCO, and NUC) and protect
the income of these funds from erosion. These three funds have now provided
shareholders with a range of 22 to 73 consecutive months of steady income.
However, declining interest rates also played a role in reducing the income
levels of the California Municipal Value, the California Investment Quality, and
the California Select Quality funds (NCA, NQC, and NVC), as proceeds from
higher-yielding bonds called or sold from these portfolios were reinvested in
bonds paying today's lower interest rates. Over the past year, the change in
income level earned by these portfolios necessitated dividend reductions.
<PAGE>
Despite the adjustments in these three funds, the California funds continue to
provide very competitive current market yields ranging from 5.08% to 5.75%,
which are equivalent to taxable yields of 8.12% to 9.19% for investors in the
combined 37.4% federal and state income tax bracket.
As Tim mentioned in his letter to shareholders, share price performance among
the Nuveen exchange-traded funds has been strong over the past 12 months. As
interest rates fell, active demand for high-quality, attractive-yielding funds
generally increased share prices over the year. As of August 31, all of the
funds covered in this report, with the exception of NCA, were trading at
premiums ranging from 4.56% to 12.64% above their net asset values. NCA - which
was the first Nuveen California fund brought to market in October 1987 - is the
oldest fund covered in this report, and is currently undergoing the normal part
of the market cycle in which bond calls are likely to occur. Over the past 12
months, 17% of the bonds in NCA's portfolio were called, resulting in some
erosion of income and a subsequent decline in share price. At the same time,
strong bond market performance boosted the fund's net asset value, widening the
spread between the share price and the NAV. As a result, the fund is currently
trading at discount of 5.47% to its NAV.
KEY STRATEGIES
Over the past year, as the escrowed (pre-refunded) and callable bonds in our
portfolios approached their call dates, our strategy has been to sell these
bonds and reinvest the proceeds in BBB-rated and non-rated bonds issued by
assessment districts for real estate projects, both residential and commercial.
These bonds, which typically offer maturities in the 20- to 30-year range,
provide attractive yields compared with other sectors of the market. Our
research is focused on finding quality bonds like these with strong fundamentals
that take advantage of the improved real estate values within the California
market, both north and south. We will also continue to invest in bonds issued by
the Foothill-Eastern Transportation Corridor in Orange County, which have
benefited from increased toll revenues.
OUTLOOK FOR THE FUTURE
The current market environment - influenced by declining interest rates, benign
inflation, and good municipal supply - has helped to position municipal bonds as
one of the most compelling values available in the market today. We expect the
excellent municipal-to-Treasury ratio, combined with continued volatility in the
equity markets and investors' resulting awareness of the need for asset
allocation rebalancing, will result in increasing demand for these bonds.
Investors who take advantage of current opportunities in the municipal market
should be rewarded with healthy returns and attractive yields in the months
ahead, as the market recognizes the value of these quality investments.
Looking ahead for the California funds, we will invest in bonds that have longer
than 20 year maturities. Although these bonds typically are positioned at the
longer end of the yield curve at a time when the curve is flat, they provide
greater liquidity than intermediate-term issues, which makes them easier to
trade when the need arises. In terms of credit quality, we will continue to
invest in BBB-rated and non-rated securities, taking advantage of the research
expertise that we have developed in California.
From a sector perspective, we plan to invest in both special assessment district
bonds and those issued within the industrial development sector. We anticipate
that special assessment bonds will continue to perform well in the improving
California real estate environment, while the state is actively encouraging
industrial development by allowing more companies to issue tax-exempt securities
that offer attractive yields and a high level of liquidity. Due to the
potentially negative impact of the uncertainties surrounding deregulation, we
plan to avoid the public power and electric utility sector. In NCA, we plan to
be proactive in replacing called bonds with longer maturities and providing
further strength and stability for the fund's income stream. These areas where
Nuveen's expertise - as an experienced investment manager knowledgeable about
the unique aspects of the California municipal market can result in added value
for investors.
<PAGE>
Nuveen California Municipal Value Fund, Inc.
Performance Overview
As of August 31, 1998
NCA
Portfolio Statistics
==================================================
Inception Date 10/87
- --------------------------------------------------
Share Price 9 13/16
- --------------------------------------------------
Net Asset Value $10.38
- --------------------------------------------------
Current Market Yield Per Share 5.08%
- --------------------------------------------------
Taxable-Equivalent Yield (Federal Only)(1) 7.36%
- --------------------------------------------------
Taxable-Equivalent Yield
(Federal and State)(1) 8.12%
- --------------------------------------------------
Fund Net Assets ($000) $261,912
- --------------------------------------------------
Average Weighted Maturity (Years) 20.97
- --------------------------------------------------
Modified Duration (Years) 7.64
- --------------------------------------------------
Annualized Total Return
On Share Price On NAV
- --------------------------------------------------
1-Year 2.11% 8.90%
- --------------------------------------------------
3-Year 7.32% 7.19%
- --------------------------------------------------
5-Year 2.80% 5.93%
- --------------------------------------------------
10-Year 6.54% 7.65%
- --------------------------------------------------
Taxable-Equivalent Total Return(2)
On Share Price On NAV
- --------------------------------------------------
1-Year 5.32% 12.14%
- --------------------------------------------------
3-Year 10.90% 10.73%
- --------------------------------------------------
5-Year 6.40% 9.63%
- --------------------------------------------------
10-Year 10.32% 11.53%
- --------------------------------------------------
Top Five Sectors (as of % of total investments)
Tax Obligation (Limited) 36%
- --------------------------------------------------
U.S. Guaranteed 19%
- --------------------------------------------------
Housing (Single family) 9%
- --------------------------------------------------
Water and Sewer 9%
- --------------------------------------------------
Transportation 7%
- --------------------------------------------------
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen fund on an after-tax basis. The
federal only rate is based on the current market yield and a federal income
tax rate of 31%. The rate shown for federal and state highlights the added
value of owning shares that are also exempt from state income taxes. It is
based on a combined federal and state income tax rate of 37.4%.
2 Taxable-equivalent total return is based on the annualized total return and a
combined federal and state income tax rate of 37.4%. It represents the return
on a taxable investment necessary to equal the return of the Nuveen fund on an
after-tax basis.
3 The Fund also paid shareholders taxable distributions in December of $0.0533
per share.
1997-1998 Monthly Tax-Free Dividends Per Share(3)
Bar Chart:
September 1997 0.048
October 1997 0.0445
November 1997 0.0445
December 1997 0.0445
January 1998 0.0445
February 1998 0.0445
March 1998 0.0445
April 1998 0.0445
May 1998 0.0445
June 1998 0.0445
July 1998 0.0415
August 1998 0.0415
Share Price Performance
Mountain Chart:
Weekly Closing Price
9/5/97 10.188
10.125
10.125
10.188
10.125
9.75
9.813
9.688
9.625
9.688
9.688
9.625
9.688
9.688
9.625
9.688
9.625
9.813
9.813
9.938
9.875
10.125
10.125
10.25
10.125
10.438
10.563
10.688
10.063
10.375
10.313
9.75
9.875
10.25
9.75
9.813
10.188
10.375
10.063
10.125
10.063
10.375
10.313
10
9.875
9.875
9.75
9.688
9.688
8/31/98 9.813
<PAGE>
Nuveen California Performance Plus Municipal Fund, Inc.
Performance Overview
As of August 31, 1998
NCP
Portfolio Statistics
==================================================
Inception Date 11/89
- --------------------------------------------------
Share Price 18
- --------------------------------------------------
Net Asset Value $15.98
- --------------------------------------------------
Current Market Yield Per Share 5.73%
- --------------------------------------------------
Taxable-Equivalent Yield (Federal Only)(1) 8.30%
- --------------------------------------------------
Taxable-Equivalent Yield
(Federal and State)(1) 9.15%
- --------------------------------------------------
Fund Net Assets ($000) $292,333
- --------------------------------------------------
Average Weighted Maturity (Years) 20.77
- --------------------------------------------------
Leverage-Adjusted Duration (Years) 7.79
- --------------------------------------------------
Annualized Total Return
On Share Price On NAV
- --------------------------------------------------
1-Year 10.74% 8.93%
- --------------------------------------------------
3-Year 13.80% 8.07%
- --------------------------------------------------
5-Year 7.36% 6.43%
- --------------------------------------------------
Since Inception 8.97% 8.52%
- --------------------------------------------------
Taxable-Equivalent Total Return(2)
On Share Price On NAV
- --------------------------------------------------
1-Year 14.41% 12.99%
- --------------------------------------------------
3-Year 17.80% 12.17%
- --------------------------------------------------
5-Year 11.37% 10.52%
- --------------------------------------------------
Since Inception 12.99% 12.68%
- --------------------------------------------------
Top Five Sectors (as of % of total investments)
U.S. Guaranteed 28%
- --------------------------------------------------
Tax Obligation (Limited) 24%
- --------------------------------------------------
Utilities 12%
- --------------------------------------------------
Transportation 8%
- --------------------------------------------------
Water and Sewer 8%
- --------------------------------------------------
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen fund on an after-tax basis. The
federal only rate is based on the current market yield and a federal income
tax rate of 31%. The rate shown for federal and state highlights the added
value of owning shares that are also exempt from state income taxes. It is
based on a combined federal and state income tax rate of 37.4%.
2 Taxable-equivalent total return is based on the annualized total return and a
combined federal and state income tax rate of 37.4%. It represents the return
on a taxable investment necessary to equal the return of the Nuveen fund on an
after-tax basis.
3 The Fund also paid shareholders taxable distributions in December of $0.0166
per share.
1997-1998 Monthly Tax-Free Dividends Per Share(3)
Bar Chart:
September 1997 0.860
October 1997 0.860
November 1997 0.860
December 1997 0.860
January 1998 0.860
February 1998 0.860
March 1998 0.860
April 1998 0.860
May 1998 0.860
June 1998 0.860
July 1998 0.860
August 1998 0.860
Share Price Performance
Mountain Chart:
Weekly Closing Price
9/5/97 17.313
17.375
17.438
17.438
17.625
17.625
17.438
17.313
17.125
17.375
17.438
17.25
17.375
17.625
17.438
17.625
17.563
17.563
17.813
17.625
17.563
17.563
17.625
17.625
17.5
17.688
18
17.75
17.625
17.625
17.875
18.063
18
17.75
17.625
17.625
17.625
17.688
17.875
17.938
18
17.875
17.938
17.938
17.813
17.75
17.75
17.625
17.75
18
8/31/98 18
Past performance is not predictive of future results.
<PAGE>
Nuveen California Municipal Market Opportunity Fund, Inc.
Performance Overview
As of August 31, 1998
NCO
Portfolio Statistics
==================================================
Inception Date 5/90
- --------------------------------------------------
Share Price 17 5/8
- --------------------------------------------------
Net Asset Value Per Share $16.48
- --------------------------------------------------
Current Market Yield 5.75%
- --------------------------------------------------
Taxable-Equivalent Yield (Federal Only)(1) 8.33%
- --------------------------------------------------
Taxable-Equivalent Yield
(Federal and State)(1) 9.19%
- --------------------------------------------------
Fund Net Assets ($000) $186,433
- --------------------------------------------------
Average Weighted Maturity (Years) 21.56
- --------------------------------------------------
Leverage-Adjusted Duration (Years) 9.12
- --------------------------------------------------
Annualized Total Return
On Share Price On NAV
- --------------------------------------------------
1-Year 11.99% 9.36%
- --------------------------------------------------
3-Year 12.30% 8.48%
- --------------------------------------------------
5-Year 6.35% 6.63%
- --------------------------------------------------
Since Inception 8.72% 8.88%
- --------------------------------------------------
Taxable-Equivalent Total Return(2)
On Share Price On NAV
- --------------------------------------------------
1-Year 15.72% 13.25%
- --------------------------------------------------
3-Year 16.26% 12.45%
- --------------------------------------------------
5-Year 10.30% 10.65%
- --------------------------------------------------
Since Inception 12.67% 12.96%
- --------------------------------------------------
Top Five Sectors (as of % of total investments)
U.S. Guaranteed 33%
- --------------------------------------------------
Tax Obligation (Limited) 23%
- --------------------------------------------------
Health Care 13%
- --------------------------------------------------
Utilities 9%
- --------------------------------------------------
Water and Sewer 9%
- --------------------------------------------------
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen fund on an after-tax basis. The
federal only rate is based on the current market yield and a federal income
tax rate of 31%. The rate shown for federal and state highlights the added
value of owning shares that are also exempt from state income taxes. It is
based on a combined federal and state income tax rate of 37.4%.
2 Taxable-equivalent total return is based on the annualized total return and a
combined federal and state income tax rate of 37.4%. It represents the return
on a taxable investment necessary to equal the return of the Nuveen fund on an
after-tax basis.
3 The Fund also paid shareholders taxable distributions in December of $0.0081
per share.
1997-1998 Monthly Tax-Free Dividends Per Share(3)
Bar Chart:
September 1997 0.845
October 1997 0.845
November 1997 0.845
December 1997 0.845
January 1998 0.845
February 1998 0.845
March 1998 0.845
April 1998 0.845
May 1998 0.845
June 1998 0.845
July 1998 0.845
August 1998 0.845
Share Price Performance
Mountain Chart:
Weekly Closing Price
9/5/97 16.75
17.063
17.063
17.188
17.5
17.5
17.188
17
17.25
17.125
17.125
17.25
17.375
17.25
17.188
17.438
17.313
17.375
17.625
17.625
17.5
17.313
17.313
17.438
17.313
17.25
17.375
17.5
17.25
17.313
17
17.188
17.125
17.375
17.25
17.438
17.375
17.313
17.75
17.625
17.875
17.75
17.875
17.875
17.625
17.375
17.5
17.563
17.563
17.688
8/31/98 17.625
Past performance is not predictive of future results.
<PAGE>
Nuveen California Investment Quality Municipal Fund, Inc.
Performance Overview
As of August 31, 1998
NQC
Portfolio Statistics
==================================================
Inception Date 11/90
- --------------------------------------------------
Share Price 16 7/8
- --------------------------------------------------
Net Asset Value $16.03
- --------------------------------------------------
Current Market Yield Per Share 5.65%
- --------------------------------------------------
Taxable-Equivalent Yield (Federal Only)(1) 8.19%
- --------------------------------------------------
Taxable-Equivalent Yield
(Federal and State)(1) 9.03%
- --------------------------------------------------
Fund Net Assets ($000) $303,108
- --------------------------------------------------
Average Weighted Maturity (Years) 21.29
- --------------------------------------------------
Leverage-Adjusted Duration (Years) 7.33
- --------------------------------------------------
Annualized Total Return
On Share Price On NAV
- --------------------------------------------------
1-Year 8.39% 8.66%
- --------------------------------------------------
3-Year 10.58% 8.06%
- --------------------------------------------------
5-Year 6.54% 6.32%
- --------------------------------------------------
Since Inception 8.25% 8.65%
- --------------------------------------------------
Taxable-Equivalent Total Return(2)
On Share Price On NAV
- --------------------------------------------------
1-Year 12.06% 12.53%
- --------------------------------------------------
3-Year 14.49% 12.03%
- --------------------------------------------------
5-Year 10.53% 10.38%
- --------------------------------------------------
Since Inception 12.23% 12.75%
- --------------------------------------------------
Top Five Sectors (as of % of total investments)
U.S. Guaranteed 37%
- --------------------------------------------------
Tax Obligation (Limited) 20%
- --------------------------------------------------
Health Care 12%
- --------------------------------------------------
Utilities 6%
- --------------------------------------------------
Transportation 6%
- --------------------------------------------------
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen fund on an after-tax basis. The
federal only rate is based on the current market yield and a federal income
tax rate of 31%. The rate shown for federal and state highlights the added
value of owning shares that are also exempt from state income taxes. It is
based on a combined federal and state income tax rate of 37.4%.
2 Taxable-equivalent total return is based on the annualized total return and a
combined federal and state income tax rate of 37.4%. It represents the return
on a taxable investment necessary to equal the return of the Nuveen fund on an
after-tax basis.
3 The Fund also paid shareholders taxable distributions in December of $0.0047
per share.
1997-1998 Monthly Tax-Free Dividends Per Share(3)
Bar Chart:
September 1997 0.825
October 1997 0.825
November 1997 0.825
December 1997 0.825
January 1998 0.825
February 1998 0.825
March 1998 0.825
April 1998 0.825
May 1998 0.825
June 1998 0.825
July 1998 0.825
August 1998 0.795
Share Price Performance
Mountain Chart:
Weekly Closing Price
9/5/97 17
16.875
16.75
16.625
17.125
16.938
16.938
16.813
16.5
16.75
16.875
17
17.125
16.938
16.75
16.813
16.813
16.938
17.125
17.25
16.875
16.75
17.125
17.125
17
17.063
17.25
17.125
17.125
17.188
17.188
17.25
16.938
16.813
17
17.25
17.25
17.5
17.25
17.5
17.438
17.563
17.5
17.875
17.75
17.563
17.375
17.313
17
17.063
8/31/98 16.875
Past performance is not predictive of future results.
<PAGE>
Nuveen California Select Quality Municipal Fund, Inc.
Performance Overview
As of August 31, 1998
NVC
Portfolio Statistics
==================================================
Inception Date 5/91
- --------------------------------------------------
Share Price 16 3/4
- --------------------------------------------------
Net Asset Value Per Share $16.02
- --------------------------------------------------
Current Market Yield 5.66%
- --------------------------------------------------
Taxable-Equivalent Yield (Federal Only)(1) 8.20%
- --------------------------------------------------
Taxable-Equivalent Yield
(Federal and State)(1) 9.04%
- --------------------------------------------------
Fund Net Assets ($000) $512,671
- --------------------------------------------------
Average Weighted Maturity (Years) 21.86
- --------------------------------------------------
Leverage-Adjusted Duration (Years) 8.07
- --------------------------------------------------
Annualized Total Return
On Share Price On NAV
- --------------------------------------------------
1-Year 8.11% 8.93%
- --------------------------------------------------
3-Year 12.31% 8.68%
- --------------------------------------------------
5-Year 6.98% 6.44%
- --------------------------------------------------
Since Inception 8.43% 8.77%
- --------------------------------------------------
Taxable-Equivalent Total Return(2)
On Share Price On NAV
- --------------------------------------------------
1-Year 11.74% 12.75%
- --------------------------------------------------
3-Year 16.23% 12.61%
- --------------------------------------------------
5-Year 10.96% 10.41%
- --------------------------------------------------
Since Inception 12.35% 12.73%
- --------------------------------------------------
Top Five Sectors (as of % of total investments)
U.S. Guaranteed 33%
- --------------------------------------------------
Tax Obligation (Limited) 19%
- --------------------------------------------------
Utilities 11%
- --------------------------------------------------
Housing (Single family) 10%
- --------------------------------------------------
Health Care 8%
- --------------------------------------------------
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen fund on an after-tax basis. The
federal only rate is based on the current market yield and a federal income
tax rate of 31%. The rate shown for federal and state highlights the added
value of owning shares that are also exempt from state income taxes. It is
based on a combined federal and state income tax rate of 37.4%.
2 Taxable-equivalent total return is based on the annualized total return and a
combined federal and state income tax rate of 37.4%. It represents the return
on a taxable investment necessary to equal the return of the Nuveen fund on an
after-tax basis.
3 The Fund also paid shareholders taxable distributions in December of $0.0174
per share.
1997-1998 Monthly Tax-Free Dividends Per Share(3)
Bar Chart:
September 1997 0.820
October 1997 0.820
November 1997 0.820
December 1997 0.820
January 1998 0.820
February 1998 0.820
March 1998 0.820
April 1998 0.820
May 1998 0.790
June 1998 0.790
July 1998 0.790
August 1998 0.790
Share Price Performance
Mountain Chart:
Weekly Closing Price
9/5/97 16.563
16.75
16.563
16.625
16.875
16.688
16.813
16.563
16.438
16.625
16.75
16.625
16.938
16.688
16.688
16.625
16.75
16.75
16.875
16.625
16.688
16.813
16.938
17.063
16.813
16.813
16.938
16.875
16.813
17.063
16.938
17
16.875
17.063
16.563
16.438
16.625
16.688
16.75
16.563
16.375
16.625
16.813
16.438
16.438
16.625
16.675
16.938
16.813
8/31/98 16.688
Past performance is not predictive of future results.
<PAGE>
Nuveen California Quality Income Municipal Fund, Inc.
Performance Overview
As of August 31, 1998
NUC
Portfolio Statistics
==================================================
Inception Date 11/91
- --------------------------------------------------
Share Price 17 3/8
- --------------------------------------------------
Net Asset Value Per Share $16.37
- --------------------------------------------------
Current Market Yield 5.63%
- --------------------------------------------------
Taxable-Equivalent Yield (Federal Only)(1) 8.16%
- --------------------------------------------------
Taxable-Equivalent Yield
(Federal and State)(1) 8.99%
- --------------------------------------------------
Fund Net Assets ($000) $503,000
- --------------------------------------------------
Average Weighted Maturity (Years) 20.77
- --------------------------------------------------
Leverage-Adjusted Duration (Years) 8.14
- --------------------------------------------------
Annualized Total Return
On Share Price On NAV
- --------------------------------------------------
1-Year 13.29% 9.65%
- --------------------------------------------------
3-Year 13.59% 9.42%
- --------------------------------------------------
5-Year 8.43% 7.18%
- --------------------------------------------------
Since Inception 8.83% 8.87%
- --------------------------------------------------
Taxable-Equivalent Total Return(2)
On Share Price On NAV
- --------------------------------------------------
1-Year 16.98% 13.43%
- --------------------------------------------------
3-Year 17.54% 13.30%
- --------------------------------------------------
5-Year 12.42% 11.09%
- --------------------------------------------------
Since Inception 12.70% 12.72%
- --------------------------------------------------
Top Five Sectors (as of % of total investments)
U.S. Guaranteed 43%
- --------------------------------------------------
Tax Obligation (Limited) 21%
- --------------------------------------------------
Health Care 7%
- --------------------------------------------------
Utilities 7%
- --------------------------------------------------
Housing (Multifamily) 4%
- --------------------------------------------------
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen fund on an after-tax basis. The
federal only rate is based on the current market yield and a federal income
tax rate of 31%. The rate shown for federal and state highlights the added
value of owning shares that are also exempt from state income taxes. It is
based on a combined federal and state income tax rate of 37.4%.
2 Taxable-equivalent total return is based on the annualized total return and a
combined federal and state income tax rate of 37.4%. It represents the return
on a taxable investment necessary to equal the return of the Nuveen fund on an
after-tax basis.
1997-1998 Monthly Tax-Free Dividends Per Share
Bar Chart:
September 1997 0.815
October 1997 0.815
November 1997 0.815
December 1997 0.815
January 1998 0.815
February 1998 0.815
March 1998 0.815
April 1998 0.815
May 1998 0.815
June 1998 0.815
July 1998 0.815
August 1998 0.815
Share Price Performance
Mountain Chart:
Weekly Closing Price
9/5/97 16.75
16.625
16.75
16.813
17
16.75
16.625
16.75
16.688
16.438
16.375
16.438
16.5
16.625
16.813
16.625
16.75
16.813
16.938
16.813
16.75
16.75
17.063
17.313
16.875
17.188
17.313
17.063
17.063
17.063
16.938
16.938
17
16.938
16.938
16.938
16.75
16.75
17.063
17.313
17
17.063
17.188
17.125
17
16.938
16.938
17
17.313
17.375
8/31/98 17.375
Past performance is not predictive of future results.
<PAGE>
REPORT OF INDEPENDENT AUDITORS
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, 1998, 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, 1998, 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, 1998, 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.
/s/Ernst & Young LLP
Chicago, Illinois
October 16, 1998
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS
Nuveen California Municipal Value Fund, Inc. (NCA)
AUGUST 31, 1998
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CAPITAL GOODS - 2.1%
$ 5,000,000 California Pollution Control Financing Authority, Fixed Rate Resource Recovery Revenue Bonds
(Waste Management, Inc.), 1991 Composite Series A, 7.150%, 2/01/11
(Alternative Minimum Tax) 2/01 at 103 BBB+ $5,405,750
- ------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 1.5%
2,015,000 ABAG Finance Authority for Nonprofit Corporations, 1991 Certificates of Participation (United Way of
Santa Clara County Project), 7.200%, 7/01/11 7/01 at 102 Aa2 2,195,544
1,500,000 Certificates of Participation, California Statewide Community Development Authority, San Diego Space
and Science Foundation, Series 1996, 7.500%, 12/01/26 12/06 at 105 N/R 1,670,610
- ------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 5.6%
1,000,000 City of Arcadia, California, Hospital Revenue Bonds (Methodist Hospital of Southern California),
Series 1992, 6.500%, 11/15/12 11/02 at 102 A 1,090,540
California Health Facilities Authority, Health Facility Revenue
Bonds (The Whittier Institute For Diabetes and Endocrinology),
Series 1988A:
860,000 8.000%, 12/01/00 12/98 at 102 N/R 883,487
3,615,000 8.400%, 12/01/08 12/98 at 102 N/R 3,716,292
1,095,000 Certificates of Participation, California Statewide Communities Development Authority, Huntington
East Valley Hospital, 5.350%, 12/01/17 12/07 at 102 AAA 1,119,539
2,500,000 City of Modesto, Insured Health Facility Revenue Bonds (Memorial Hospital Association),
Series 1997B, 5.250%, 6/01/21 6/07 at 102 AAA 2,537,775
2,425,000 City of Pasadena, Insured Health Facilities Revenue Bonds (Pacific Clinics), Series 1988A,
8.200%, 6/01/18 No Opt. Call N/R 2,429,535
1,265,000 San Benito Hospital District, Insured Health Facility Revenue Bonds, Series 1991A,
6.750%, 12/01/21 12/01 at 102 A+ 1,373,347
1,440,000 City of Stockton, California, Health Facility Revenue Bonds, Dameron Hospital Association,
1997 Series A, 5.300%, 12/01/08 12/07 at 102 BBB+ 1,534,882
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 1.8%
2,090,000 California Statewide Communities Development Authority, Multifamily Housing Revenue Bonds
(Santa Paula Village Apartments), Series 1998D, 5.430%, 5/01/28
(Alternative Minimum Tax) 5/08 at 100 AAA 2,112,614
2,635,000 Community Development Agency of The City of Menlo Park, Multifamily Housing Revenue Bonds
(FHA-Insured Mortgage Loan - The Gateway Project), Series 1987A,
8.250%, 12/01/08 12/98 at 102 1/2 Aa 2,727,963
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 8.5%
285,000 California Housing Finance Agency, Home Mortgage Revenue Bonds, 1988 Series G,
8.150%, 8/01/19 (Alternative Minimum Tax) 8/00 at 100 Aa 291,085
3,190,000 California Housing Finance Agency Home Mortgage Revenue Bonds, 1997 Series H,
5.500%, 8/01/17 8/07 at 102 AAA 3,320,056
2,765,000 California Housing Finance Agency, Home Mortgage Revenue Bonds, 1994 Series F-3,
6.100%, 8/01/15 (Alternative Minimum Tax) 8/05 at 102 AAA 2,938,587
3,000,000 California Housing Finance Agency, Home Mortgage Revenue Bonds, 1995 Series J,
6.000%, 8/01/17 8/05 at 102 AAA 3,200,220
1,500,000 California Housing Finance Agency, Single Family Mortgage Bonds II, 1997 Series C-2, 5.650%, 2/01/25
(Alternative Minimum Tax) 8/07 at 101 1/2 AAA 1,554,345
2,200,000 California Housing Finance Agency, Home Mortgage Revenue Bonds, 1995 Series M, 6.050%, 8/01/15
(Alternative Minimum Tax) 2/06 at 102 AAA 2,344,474
685,000 California Rural Home Mortgage Finance Authority, Single Family Mortgage Revenue Bonds
(Mortgage-Backed Securities Program), 1993 Issue A, Series 2, 7.950%, 12/01/24 (Alternative
Minimum Tax) No Opt. Call Aaa 811,937
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
HOUSING/SINGLE FAMILY (CONTINUED)
$ 2,675,000 California Rural Home Mortgage, Finance Authority, Single Family Mortgage Revenue Bonds
(Mortgage-Backed Securities Program), 1997 Series D, 6.700%, 5/01/29
(Alternative Minimum Tax) No Opt. Call AAA $ 3,060,200
2,330,000 California Rural Home Mortgage Finance Authority, Single Family Mortgage Revenue Bonds
(Mortgage-Backed Securities Program), 1998 Series A, 5.750%, 12/01/29
(Alternative Minimum Tax) No Opt. Call AAA 2,569,524
95,000 The City of Los Angeles, Single Family Home Mortgage Revenue Bonds (GNMA and FNMA
Mortgage-Backed Securities Program), 1991 Issue A, 6.875%, 6/01/25
(Alternative Minimum Tax) 12/01 at 102 AAA 100,363
1,965,000 Southern California Home Financing Authority, Single Family Mortgage Revenue Bonds (GNMA
Mortgage-Backed Securities Program), 1988 Issue A, 8.125%, 2/01/21
(Alternative Minimum Tax) No Opt. Call AAA 2,152,048
- ------------------------------------------------------------------------------------------------------------------------------------
LONG TERM CARE - 3.1%
2,720,000 Revenue Refunding Certificates of Participation (American Baptist Homes of the West Facilities Project),
Series 1997A, 5.750%, 10/01/17 10/07 at 102 BBB 2,809,243
5,000,000 California Statewide Communities Development Authority, Series A, Certificates of Participation,
Pacific Homes, 6.000%, 4/01/17 4/03 at 102 A+ 5,344,750
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 3.6%
1,885,000 State of California, Various Purpose General Obligations Bonds,
7.000%, 8/01/08 No Opt. Call A+ 2,294,856
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 1,244,657
1,235,000 5.875%, 7/01/24 7/05 at 102 3/8 AAA 1,336,085
2,000,000 Lucia Mar Unified School District, San Luis Obispo County, California, Election of 1997 General
Obligation Bonds, Series A, 5.400%, 8/01/22 8/07 at 102 AAA 2,079,400
2,325,000 Temecula Valley Unified School District, County of Riverside, California, 1990 General
Obligation Bonds, Series F, 6.000%, 9/01/20 9/06 at 102 AAA 2,560,778
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 35.0%
2,895,000 Certificates of Participation (1991 Financing Project), County of Alameda, California, Alameda County
Public Facilities Corporation, 6.000%, 9/01/21 9/06 at 102 AAA 3,180,418
9,000,000 State Public Works Board of the State of California Lease Revenue Bonds (Department of Corrections),
1996 Series A (California Substance Abuse Treatment Facility and State Prison at Corcoran
(Corcoran II)), 5.250%, 1/01/21 1/06 at 100 AAA 9,149,850
4,000,000 Chino Unified School District, Certificates of Participation (1995 Master Lease Program),
6.000%, 9/01/20 9/05 at 102 AAA 4,404,040
600,000 Colton (California), Public Financing Authority, Tax Allocation Revenue Bonds, Series 1998A
(Redevelopment Agency of the City of Colton Redevelopment Projects),
5.000%, 8/01/27 8/08 at 102 AAA 594,534
2,800,000 Community Development Commission of the City of Commerce, Redevelopment Project No. 1,
Subordinate Lien Tax Allocation, Refunding Bonds Series 1997B,
6.000%, 8/01/21 8/07 at 102 N/R 2,868,572
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 10/98 at 101 1/2 N/R 1,190,849
3,745,000 8.000%, 10/01/10 10/98 at 101 1/2 N/R 3,811,062
2,000,000 Redevelopment Agency of the City of Duarte, Amended Davis Addition Project Area, 1997 Tax
Allocation Refunding Bonds, 6.700%, 9/01/14 9/07 at 102 N/R 2,150,780
930,000 Inglewood Public Finance Authority, 1992 Revenue Bonds, Series B (In-Town, Manchester-Prairie
and North Inglewood Industrial Park Redevelopment Project),
7.000%, 5/01/22 5/02 at 102 BBB 1,012,445
920,000 Inglewood Public Finance Authority, 1992 Revenue Bonds, Series C (In-Town, Manchester and
North Inglewood Industrial Park Redevelopment Projects-Housing Set-Aside Loans),
7.000%, 5/01/22 5/02 at 102 A- 999,608
2,000,000 Los Angeles Convention and Exhibition Center Authority, Lease Revenue Bonds, 1993 Refunding
Series A, The City of Los Angeles (California), 5.125%, 8/15/21 8/03 at 102 AAA 1,999,940
1,000,000 Los Angeles County Metropolitan Transportation Authority (California), Proposition C Sales Tax
Revenue Bonds, Second Senior Bonds, Series 1995-A, 5.500%, 7/01/17 7/05 at 102 AAA 1,048,740
1,000,000 Los Angeles County Metropolitan Transportation Authority (California), Sales Tax Revenue Refunding
Bonds, Proposition A-2nd Tier, Series 1996, 5.750%, 7/01/18 7/06 at 101 AAA 1,069,930
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
TAX OBLIGATION/LIMITED (CONTINUED)
$ 3,500,000 Los Angeles County Metropolitan Transportation Authority (California), Proposition C Sales Tax
Revenue Refunding Bonds,Second Senior Bonds, Series 1998-A,
5.000%, 7/01/23 7/08 at 101 AAA $3,470,250
2,100,000 Los Angeles County Public Works Financing Authority, Revenue Bonds, Series 1997A (Los Angeles
County Regional Park and Open Space District), 5.100%, 3/01/11 3/07 at 101 AAA 2,198,322
4,735,000 City of Milpitas, Limited Obligation Improvement Bonds,Local Improvement District No. 20, 1998
Series A (Santa Clara County, California), 5.650%, 9/02/13 9/98 at 103 N/R 4,835,571
3,300,000 Orange County Development Agency, Santa Ana Heights Project Area, 1993 Tax Allocation Revenue
Bonds (California), 6.125%, 9/01/23 9/03 at 102 BBB 3,498,033
County of Orange, California, Limited Obligation Improvement Bonds, 1998 Series A, Irvine Coast
Assessment District No. 88-1:
1,435,000 5.350%, 9/02/11 3/99 at 102 1/2 N/R 1,439,764
1,515,000 5.375%, 9/02/12 3/99 at 102 1/2 N/R 1,520,030
5,000,000 Palm Desert Financing Authority, Tax Allocation Refunding Revenue Bonds (Project Area No. 1, As
Amended), Series 1997, 5.625%, 4/01/23 4/02 at 100 AAA 5,324,000
1,750,000 County of Riverside Asset Leasing Corporation, Leasehold Revenue Bonds, 1997 Series B (County of
Riverside Hospital Project), 5.700%, 6/01/16 6/12 at 101 AAA 1,930,163
1,000,000 Riverside County Public Financing Authority, 1997 Lease Revenue Bonds (State of California Court of
Appeals Fourth Appellate District, Division Two Project), 5.375%, 10/01/22 10/07 at 102 AAA 1,039,770
1,500,000 Sacramento Area Flood Control Agency (California), North Area Local Project, Capital Assessment
District No. 2 Bonds, Series 1995, 5.375%, 10/01/25 10/05 at 102 AAA 1,551,105
Salida Area Public Facilities Financing Agency (Stanislaus County, California), Community Facilities
District No. 1988-1, Special Tax Bonds, Series 1997:
2,380,000 5.250%, 9/01/18 9/07 at 102 AAA 2,434,930
5,000,000 5.250%, 9/01/28 9/07 at 102 AAA 5,115,400
1,440,000 San Dimas Housing Authority, Mobile Home Park Revenue Bonds (Charter Oak Mobile Home Estates
Acquisition Project), Series 1998A, 5.700%, 7/01/28 7/08 at 102 N/R 1,419,552
4,000,000 San Francisco Bay Area Rapid Transit District (California), Sales Tax Revenue Bonds, Series 1998,
5.000%, 7/01/28 7/08 at 101 AAA 3,966,000
8,000,000 Redevelopment Agency of the City of San Jose, Merged Area Redevelopment Project, Tax
Allocation Bonds, Series 1993, 5.000%, 8/01/20 2/04 at 102 AAA 7,910,400
1,000,000 Community Development Commission of the City of Santa Fe Springs, California (Los Angeles
County), Consolidated Redevelopment Project, Tax Allocation Refunding Bonds,
1998 Series A, 5.000%, 9/01/22 9/07 at 102 AAA 991,720
1,700,000 Shafter Joint Powers Financing Authority, Lease Revenue Bonds 1997 Series A (Community
Correctional Facility Acquisition Project), 5.950%, 1/01/11 1/07 at 101 BBB+ 1,853,595
City of Stockton, Mello-Roos Revenue Bonds, Series 1997A, Community Facilities District No. 90-2
(Brookside Estates):
1,000,000 5.850%, 8/01/09 8/05 at 102 N/R 1,044,260
1,000,000 6.200%, 8/01/15 8/05 at 102 N/R 1,048,400
2,570,000 Vista Joint Powers Financing Authority, Special Tax Leases Revenue Refunding Bonds, 1997 Series A,
5.875%, 9/01/20 9/05 at 102 N/R 2,627,645
1,000,000 Vista Joint Power Financing Authority, Special Tax Lease Revenue Refunding Bonds, 1997 Series B,
5.500%, 9/01/20 9/05 at 102 N/R 1,000,100
1,725,000 City of Visalia, California, Refunding Certificates of Participation (Multiple Projects), Visalia Public
Finance Authority, Series 1996B, 5.375%, 12/01/19 12/06 at 102 AAA 1,785,341
- ------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 6.7%
2,245,000 Los Angeles County Metropolitan Transportation Authority (California), General Revenue Refunding
Bonds (Union Station Gateway Project), Series 1996-A, 5.250%, 7/01/13 7/06 at 101 AAA 2,353,389
3,000,000 Port of Oakland, California, Revenue Bonds, 1997 Series G, 5.375%, 11/01/25
(Alternative Minimum Tax) 11/07 at 102 AAA 3,078,360
5,490,000 Airports Commission, City and County of San Francisco, California, San Francisco, International
Airport, Second Series Revenue Bonds, Issue 10, 5.625%, 5/01/21
(Alternative Minimum Tax) 5/06 at 102 AAA 5,756,540
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
TRANSPORTATION (CONTINUED)
$ 5,925,000 Airports Commission, City and County of San Francisco, California, San Francisco International
Airport, Second Series Revenue Bonds, Issue 11 (Noise Insulation Program), 6.200%, 5/01/19
(Alternative Minimum Tax) 5/05 at 101 AAA $6,469,863
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 18.7%
1,000,000 California Health Facilities Financing Authority, Health Facility Revenue Bonds (Health Dimensions,
Incorporated), 1990 Series A, 7.375%, 5/01/07 (Pre-refunded to 5/01/00) 5/00 at 102 Aaa 1,080,450
1,500,000 California Health Facilities Financing Authority, Revenue Bonds (St. Joseph Health System),
Series 1991 A, 7.000%, 7/01/10 (Pre-refunded to 7/01/01) 7/01 at 102 AA-*** 1,659,570
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 1,533,824
1,725,000 7.200%, 6/01/10 (Pre-refunded to 12/01/00) 12/00 at 101 7/8 AAA 1,890,238
2,750,000 Campbell Union School District, Santa Clara County, California, 1994 General Obligation Bonds,
Series A, 6.250%, 8/01/19 (Pre-refunded to 8/01/04) 8/04 at 102 AAA 3,137,668
2,065,000 County of Contra Costa, California, 1988 Home Mortgage Mortgage Revenue Bonds (GNMA
Mortgage-Backed Securities Program), 8.250%, 6/01/21 (Alternative Minimum Tax)No Opt. Call AAA 2,899,714
1,470,000 El Paso de Robles Redevelopment Agency, (Paso Robles Redevelopment Project), 1991 Tax Allocation
Bonds, (Bank Qualified), 7.250%, 7/01/21 (Pre-refunded to 7/01/00) 7/00 at 102 BBB*** 1,594,965
2,500,000 The Community Redevelopment Agency of the City of Los Angeles, California, Central Business
District Redevelopment Project, Tax Allocation Refunding Bonds, Series G,
6.750%, 7/01/10 7/00 at 100 BBB*** 2,595,325
8,515,000 Los Angeles Convention and Exhibition Center Authority, California, Certificates of Participation,
Series 1985, 9.000%, 12/01/20 (Pre-refunded to 12/01/05) 12/05 at 100 AAA 11,205,229
1,100,000 Department of Water and Power of the City of Los Angeles (California), Electric Plant Revenue
Bonds, Issue of 1990, 7.125%, 5/15/30 (Pre-refunded to 5/15/00) 5/00 at 102 Aa3*** 1,180,113
4,000,000 Modesto Irrigation District Financing Authority, Domestic Water Project Revenue Bonds,
Series 1995C, 5.750%, 9/01/22 (Pre-refunded to 9/01/05) 9/05 at 102 AAA 4,504,000
8,565,000 City of Palmdale, California, Single Family Mortgage Revenue Bonds (GNMA Mortgage-Backed
Securities Program), Series 1988A, 0.000%, 3/01/17 No Opt. Call AAA 3,385,916
20,415,000 County of San Bernardino, California, Single Family Mortgage Revenue Bonds (GNMA
Mortgage-Backed Securities), 1988 Series A, 0.000%, 9/01/21
(Alternative Minimum Tax) No Opt. Call Aaa 6,406,431
5,050,000 The Regents of the University of California, Refunding Revenue Bonds (Multiple Purpose Projects),
Series A, 6.875%, 9/01/16 (Pre-refunded to 9/01/02) 9/02 at 102 AA-*** 5,721,246
- ------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 2.4%
1,750,000 Northern California Power Agency, Hydroelectric Project Number One Revenue Bonds,
1998 Refunding Series A, 5.200%, 7/01/32 7/08 at 101 AAA 1,773,817
1,600,000 Southern California Public Power Authority, Mead-Phoenix Project Revenue Bonds,
1994 Series A, 4.750%, 7/01/16 7/05 at 102 AAA 1,566,911
3,000,000 Southern California Public Power Authority, Transmission Project Revenue Bonds,
1993 Subordinate Refunding Series (Southern Transmission Project),
5.000%, 7/01/22 7/03 at 100 AAA 2,964,810
- ------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 8.3%
2,015,000 Azusa Public Financing Authority Water System (System Acquisition Project),
5.000%, 7/01/23 7/03 at 102 AAA 1,990,860
5,000,000 Castaic Lake Water Agency (California), Refunding Revenue Certificates of Participation
(Water System Improvement Projects), Series 1994A, 6.300%, 8/01/20 8/04 at 102 AAA 5,576,950
2,000,000 Contra Costa Water Authority (Contra Costa County, California), Water Treatment Revenue
Refunding Bonds, 1993 Series A, 5.750%, 10/01/20 10/02 at 102 AAA 2,108,280
7,750,000 Sacramento County Sanitation Districts Financing Authority, 1993 Revenue Bonds,
4.750%, 12/01/23 12/03 at 102 AA 7,425,042
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
WATER AND SEWER (CONTINUED)
$ 2,500,000 Public Facilities Financing Authority of the City of San Diego (California), Sewer Revenue
Bonds, Series 1997A, 5.250%, 5/15/22 5/07 at 101 AAA $2,556,324
1,925,000 San Jacinto Financing Authority, Revenue Bonds, Series 1997 (Water Improvement
Project), 5.500%, 10/01/18 4/07 at 102 AAA 2,029,990
- ------------------------------------------------------------------------------------------------------------------------------------
$ 259,425,000 Total Investments - (cost $231,725,707) - 97.3% 254,741,430
=============
TEMPORARY INVESTMENTS IN SHORT-TERM MUNICIPAL SECURITIES - 0.6%
$ 1,500,000 Orange County, Irvine Coast Assessment District #88-1, Variable Rate Demand Bonds,
3.150%, 9/02/18+ VMIG-1 1,500,000
=============
Other Assets Less Liabilities - 2.1% 5,670,424
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $261,911,854
====================================================================================================================
* 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.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS
Nuveen California Performance Plus Municipal Fund, Inc. (NCP)
AUGUST 31, 1998
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
EDUCATION AND CIVIC ORGANIZATIONS - 0.9%
$ 1,500,000 California Educational Facilities Authority Revenue Bonds (University of San Francisco),
Series 1996, 6.000%, 10/01/26 10/06 at 102 Aaa $1,653,090
1,000,000 State Public Works Board of the State of California, Lease Revenue Bonds
(Various California State University Project), 1997 Series C,
5.400%, 10/01/22 10/07 at 102 A 1,031,530
- ------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 4.1%
2,000,000 California Health Facilities Financing Authority, Kaiser Permanente, Revenue Bonds,
1989 Series A, 7.000%, 10/01/08 10/99 at 102 A 2,108,040
2,780,000 California Health Facilities Financing Authority, Insured Health Facility Revenue Refunding
Bonds (Valley Memorial Hospital), 1993 Series A, 6.000%, 5/01/17 5/03 at 102 A+ 2,964,147
Central Joint Powers Health Financing Authority, Certificates of
Participation, Series 1993 (Community Hospital of Central
California):
2,500,000 5.250%, 2/01/13 2/03 at 102 Baa1 2,542,075
4,720,000 5.000%, 2/01/23 2/03 at 100 Baa1 4,474,513
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 2.2%
3,915,000 The City of Los Angeles Multifamily Housing Revenue Bonds (GNMA Collateralized-Ridgecroft
Apartments Project), Series 1997E, 6.250%, 9/20/39 (Alternative Minimum Tax)9/07 at 102 AAA 4,154,011
2,315,000 Community Development Commission of the County of Los Angeles, Mortgage Revenue
Refunding Bonds, Series 1993, FHA-Insured Mortgage Loan - Los Tomas Apartments,
Section 8 Assisted Project, 6.500%, 7/15/23 5/03 at 100 Aaa 2,419,569
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 4.0%
3,690,000 California Housing Finance Agency, Home Mortgage Revenue Bonds, 1990 Series A,
7.700%, 8/01/30 (Alternative Minimum Tax) 2/00 at 102 Aa 3,847,305
2,630,000 California Housing Finance Agency, Home Mortgage Revenue Bonds, 1995 Series A,
7.125%, 2/01/26 (Alternative Minimum Tax) 2/05 at 102 Aa 2,852,261
2,500,000 County of San Bernardino (California), Single Family Home Mortgage Revenue Bonds
(Mortgage-Backed Securities Program), 1997 Series A,
6.200%, 5/01/21 (Alternative Minimum Tax) 5/07 at 103 AAA 2,677,950
2,285,000 Southern California Home Financing Authority, Single Family Mortgage Revenue Bonds
(GNMA Mortgage-Backed Securities Program), 1990 Issue A,
7.625%, 10/01/23 (Alternative Minimum Tax) 10/00 at 102 AAA 2,400,187
- ------------------------------------------------------------------------------------------------------------------------------------
LONG TERM CARE - 1.4%
4,120,000 California Health Facilities Financing Authority, California Mortgage Loan Insurance Health Facility
Revenue Bonds (Casa De Las Campanas), 1998 Series A, 5.250%, 8/01/20 8/08 at 100 A+ 4,146,739
- ------------------------------------------------------------------------------------------------------------------------------------
OTHER REVENUE - 1.2%
3,500,000 City of Irvine, Mobile Home Park Revenue Bonds (Meadows Mobile Home Park Project),
Series 1998A, 5.700%, 3/01/28 3/08 at 102 N/R 3,520,545
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 6.0%
6,000,000 State of California, Various Purpose General Obligation Bond,
5.750%, 3/01/14 3/05 at 101 A1 6,430,260
1,165,000 State of California, Veterans General Obligation Bonds, Series BL, 5.300%, 12/01/12
(Alternative Minimum Tax) 12/08 at 101 A1 1,184,665
2,800,000 State of California, Various Purpose General Obligation Refunding Bonds,
5.125%, 10/01/27 10/07 at 101 A1 2,799,860
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
TAX OBLIGATION/GENERAL (CONTINUED)
$ 5,500,000 Hawthorne School District (Los Angeles County, California), General Obligation Bonds,
1997 Election, 1997 Series A, 5.500%, 5/01/22 11/08 at 102 Aaa $5,822,685
1,000,000 Pomona Unified School District, General Obligation Refunding Bonds,
Series 1997-A, 6.150%, 8/01/15 8/11 at 103 Aaa 1,165,780
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 23.2%
2,000,000 Alameda Public Financing Authority, 1997 Revenue Bonds (Marina Village Assessment
District Bond Refinancing), 6.375%, 9/02/14 9/98 at 102 N/R 2,059,720
1,000,000 Apple Valley, Certificates of Participation, Town Center Project,
6.375%, 9/01/15 9/05 at 102 A 1,101,710
1,850,000 City of Coalinga, California, Certificates of Participation (1989 Coalinga Return to Custody
Facility), 7.000%, 4/10/10 4/00 at 102 BBB+ 1,941,076
2,000,000 Cudahy Redevelopment Agency, Cudahy Redevelopment Project, Tax Allocation Refunding Bonds,
Series 1994A, 6.700%, 9/01/24 9/03 at 102 BBB 2,169,380
3,000,000 Folsom Public Financing Authority (Sacramento County, California), 1990 Local Agency Revenue Bonds,
Series A, 7.250%, 10/01/10 10/00 at 102 BBB+ 3,202,890
3,000,000 Fontana Public Financing Authority (San Bernardino County, California), Tax Allocation Revenue
Bonds (North Fontana Redevelopment Project), 1990 Series A, 7.250%, 9/01/20 9/00 at 102 BBB 3,182,790
2,500,000 Fruitvale School District, Certificates of Participation (1990 Improvement Project),
7.875%, 6/01/04 6/00 at 102 Baa 2,705,600
1,700,000 Lancaster Housing Authority, Lease Revenue Bonds (Brierwood Mobilehome Park Project),
Issue of 1994, 7.200%, 4/01/24 4/99 at 102 BBB+ 1,747,107
5,000,000 Los Angeles County Metropolitan Transportation Authority (California), Proposition A,
Sales Tax Revenue Refunding Bonds, Series 1993-A, 5.000%, 7/01/21 7/03 at 100 Aaa 4,942,650
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 BB 2,599,231
2,500,000 7.500%, 6/01/21 6/01 at 102 BB 2,665,775
8,800,000 County of Orange, California, 1996 Recovery Certificates of Participation, Series A,
6.000%, 7/01/26 7/06 at 102 Aaa 9,679,384
3,050,000 Pleasanton Joint Powers Financing Authority, Reassessment Revenue Bonds, 1993 Series A,
6.000%, 9/02/05 9/03 at 102 Baa3 3,294,305
1,000,000 Redevelopment Agency of the City of Pomona, Holt Avenue/Indian Hill Redevelopment Project,
1997 Tax Allocation Refunding Bonds, Series S, 5.750%, 6/01/16 6/02 at 102 N/R 1,007,430
2,215,000 Rancho Cucamonga Redevelopment Agency (San Bernardino County, California),
Rancho Redevelopment Project, 1990 Tax Allocation Bonds, 7.125%, 9/01/19 9/99 at 102 Aaa 2,330,180
11,905,000 Redevelopment Agency of the City of San Jose (California), Merged Area
Redevelopment Project, Tax Allocation Bonds, Series 1998, 5.250%, 8/01/29 8/08 at 102 A 11,993,692
6,470,000 City of San Leandro, California, San Leandro Public Financing Authority, Certificates of
Participation (1993 Seismic Retrofit Financing Project), 5.950%, 6/01/23 6/03 at 102 A 6,816,016
1,000,000 City of Stockton, Mello-Roos Revenue Bonds, Series 1998A Community Facilities District No. 1
(Weston Ranch), 5.800%, 9/01/14 9/06 at 102 N/R 1,027,870
1,395,000 Redevelopment Agency of the City of Suisun City, Suisun City Redevelopment Project, 1993 Tax
Allocation Refunding Bonds (County of Solano, California),
5.900%, 10/01/23 10/03 at 102 Aaa 1,491,548
1,750,000 Taft Public Financing Authority, Lease Revenue Bonds, 1997 Series A (Community Correctional
Facility Acquisition Project), 5.950%, 1/01/11 1/07 at 101 BBB+ 1,908,113
- ------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 8.2%
3,000,000 Foothill/Eastern Transportation Corridor Agency, Toll Road Revenue Bonds, Series 1995A,
6.000%, 1/01/34 1/05 at 102 Baa 3,203,220
1,320,000 County of Orange, California, Airport Revenue Refunding Bonds, Series 1997, 5.625%,
7/01/12 (Alternative Minimum Tax) 7/07 at 102 Aaa 1,425,547
8,000,000 Port of Oakland, California, Revenue Bonds, 1990 Series D,
8.000%, 11/01/00 No Opt. Call Aaa 8,714,880
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
TRANSPORTATION (CONTINUED)
$ 4,630,000 County of Sacramento, Airport System PFC and Subordinated Revenue Bonds, Series 1996D,
6.000%, 7/01/16 7/06 at 102 Aaa $5,099,112
5,000,000 Airports Commission, City and County of San Francisco, California, San Francisco International
Airport, Second Series Revenue Bonds, Issue 11 (Noise Insulation Program), 6.250%
5/01/26 (Alternative Minimum Tax) 5/05 at 101 Aaa 5,470,950
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 28.1%
2,000,000 California Educational Facilities Authority, Revenue Bonds (St. Mary's College
of California Project), Series 1990 7.500%, 10/01/20
(Pre-refunded to 10/01/00) 10/00 at 102 Aaa 2,194,800
5,500,000 California Health Facilities Financing Authority, Health Facility Revenue Bonds
(Pomona Valley Hospital Medical Center), 1989 Series A, 9.750%,
1/01/19 (Pre-refunded to 1/01/00) 1/00 at 102 N/R*** 6,041,805
6,500,000 California Health Facilities Financing Authority, Insured Hospital Revenue Bonds
(Children's Hospital-San Diego), Series 1990, 7.000%, 7/01/13
(Pre-refunded to 7/01/00) 7/00 at 102 Aaa 7,019,090
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 4,502,863
5,000,000 7.500%, 5/01/15 (Pre-refunded to 5/01/00) 5/00 at 102 Aaa 5,411,850
4,800,000 California Health Facilities Financing Authority, Health Facility Revenue Bonds (Sisters
of Providence), Series 1990, 7.500%, 10/01/10 (Pre-refunded to 10/01/00) 10/00 at 102 N/R*** 5,254,272
3,000,000 California Statewide Communities Development Authority (Triad Healthcare), Revenue
Refunding Series 1992, Certificates of Participation, 6.250%, 8/01/06 No Opt. Call A+*** 3,339,780
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 1,640,610
1,610,000 7.150%, 6/01/09 (Pre-refunded to 12/01/00) 12/00 at 101 7/8 Aaa 1,762,580
6,080,000 City of Anaheim, California, Certificates of Participation, Anaheim Memorial Hospital
Association, 7.125%, 5/15/13 (Pre-refunded to 5/15/00) 5/00 at 102 Aaa 6,555,456
4,000,000 Contra Costa Water District (Contra Costa County, California), Water Revenue Bonds,
Series C, 6.750%, 10/01/20 (Pre-refunded to 10/01/00) 10/00 at 102 N/R*** 4,324,000
4,000,000 County of Contra Costa, California, 1988 Home Mortgage Revenue Bonds
(GNMA Mortgage-Backed Securities Program), 8.250%, 6/01/21
(Alternative Minimum Tax) No Opt. Call Aaa 5,616,880
3,000,000 Hospital Revenue Certificates of Participation (Desert Hospital Corporation Project), Series 1990,
8.100%, 7/01/20 (Pre-refunded to 7/01/00) 7/00 at 102 AAA 3,297,660
10,000,000 East Bay Municipal Utility District (Alameda and Contra Costa Countries, California),
Water System Subordinated Revenue Bonds, Series 1990, 7.500%, 6/01/18
(Pre-refunded to 6/01/00) 6/00 at 102 Aaa 10,856,800
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 (Pre-refunded to 5/01/00) 5/00 at 102 A2*** 1,814,920
1,765,000 6.700%, 5/01/09 (Pre-refunded to 5/01/00) 5/00 at 102 A2*** 1,887,138
2,000,000 LaQuinta Redevelopment Agency, LaQuinta Redevelopment Project, Tax Allocation Refunding
Bonds, Series 1990, 8.400%, 9/01/12 (Pre-refunded to 9/01/00) 9/00 at 102 Aaa 2,223,580
2,285,000 Rancho Cucamonga Redevelopment Agency (San Bernardino County, California), Rancho
Redevelopment Project, 1990 Tax Allocation Bonds, 7.123%, 9/01/19
(Pre-refunded to 9/01/99) 9/99 at 102 Aaa 2,413,646
2,650,000 San Diego County Water Authority, Water Revenue Certificates of Participation, Series 1991A,
6.375%, 5/01/06 (Pre-refunded to 5/01/01) 5/01 at 102 AA-*** 2,880,232
2,500,000 Sierra View Local Hospital District, Insured Health Facility Revenue Bonds, Series 1992,
6.400%, 3/01/22 (Pre-refunded to 3/01/02) 3/02 at 102 A+*** 2,757,150
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
UTILITIES - 11.5%
$ 10,250,000 California Pollution Control Financing Authority, Solid Waste Disposal Revenue Bonds
(CanFibre of Riverside Project), Tax-Exempt Series 1997A, 9.000%, 7/01/19
(Alternative Minimum Tax) 7/07 at 102 N/R $10,720,578
12,600,000 City of Chula Vista, Industrial Development Revenue Bonds (San Diego Gas and Electric
Company), 1992 Series A, 6.400%, 12/01/27 (Alternative Minimum Tax) 12/02 at 102 Aaa 13,803,804
4,545,000 Department of Water and Power of The City of Los Angeles (California), Electric Plant
Revenue Bonds, Second Issue of 1993, 5.000%, 10/15/33 10/03 at 102 Aa3 4,474,461
4,500,000 Stanislaus County Waste-to-Energy Financing Agency, Solid Waste Facility Refunding Revenue
Certificates (Ogden Martin System of Stanislaus, Inc. Project),
Series 1990, 7.625%, 1/01/10 1/00 at 102 Aaa 4,754,744
- ------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 7.9%
3,000,000 Department of Water and Power of The City of Los Angeles, Water Works Refunding Revenue
Bonds, Second Issue of 1993, 4.500%, 5/15/13 5/03 at 102 Aa 2,907,180
4,270,000 Department of Water and Power of The City of Los Angeles, Water Works Refunding
Revenue Bonds, Second Issue of 1993, 4.500%, 5/15/18 5/03 at 102 Aa 3,991,382
5,000,000 The City of Los Angeles Wastewater System Revenue Bonds, Refunding
Series 1991-C, 7.100%, 6/01/18 6/99 at 102 A1 5,214,050
1,500,000 City of Norco Refunding Certificates of Participation, Series 1998 (Sewer System and Water
System Improvement Project), 5.125%, 10/01/28 10/08 at 102 Aaa 1,501,274
5,000,000 Revenue Certificates of Participation, Series 1993A, Orange County Water District,
5.000%, 8/15/18 8/03 at 100 Aa 4,910,100
4,585,000 City of Santa Maria, California, Water and Wastewater Revenue Subordinate Certificates
of Participation, Series 1997A,0.000%, 8/01/27 8/12 at 101 Aaa 3,572,127
1,000,000 City of Stockton, Revenue Certificates of Participation, 1998 Series A (Wastewater System
Project), 5.200%, 9/01/29 9/08 at 102 Aaa 1,016,529
- ------------------------------------------------------------------------------------------------------------------------------------
$ 272,765,000 Total Investments - (cost $264,389,543) - 98.7% 288,636,729
=============
Other Assets Less Liabilities - 1.3% 3,696,505
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $292,333,234
====================================================================================================================
* 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.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS
Nuveen California Municipal Market Opportunity Fund, Inc. (NCO)
AUGUST 31, 1998
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
EDUCATION AND CIVIC ORGANIZATIONS - 1.1%
$ 1,000,000 California Educational Facilities Authority Revenue Bonds (University of San Francisco),
Series 1996, 6.000%, 10/01/26 10/06 at 102 Aaa $1,102,060
1,000,000 State Public Works Board of the State of California, Lease Revenue Bonds
(Various California State University Project), 1997 Series C,
5.400%, 10/01/22 10/07 at 102 A 1,031,530
- ------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 13.3%
6,250,000 California Health Facilities Financing Authority, Kaiser Permanente, Revenue Bonds,
1989 Series A, 7.000%, 10/01/18 10/99 at 102 A 6,562,563
2,000,000 California Health Facilities Financing Authority, Insured Health Facility Revenue Refunding Bonds
(Valley Memorial Hospital), 1993 Series A, 6.000%, 5/01/17 5/03 at 102 A+ 2,132,480
6,800,000 Central Joint Powers Health Financing Authority, Certificates of Participation, Series 1993
(Community Hospitals of Central California), 5.000%, 2/01/23 2/03 at 100 Baa1 6,446,332
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 6,395,661
3,000,000 6.500%, 12/01/18 12/03 at 102 BBB 3,243,570
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 2.2%
4,000,000 California Statewide Communities Development Authority, Apartment Development
Revenue Refunding (Irvine Apartment Communities LP), Series 98-A4,
5.250%, 5/15/25 (Mandatory put 5/15/13) 7/08 at 101 BBB 4,068,560
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 0.6%
1,110,000 California Housing Finance Agency, Home Mortgage Revenue Bonds, 1988 Series C,
8.300%, 8/01/19 (Alternative Minimum Tax) 8/00 at 100 Aa 1,133,798
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 3.6%
1,000,000 California State Various Purpose General Obligation Bonds, Series 1998,
5.000%, 2/01/21 2/08 at 101 A1 989,980
3,000,000 State of California, Veterans General Obligation Bonds, Series BL,
5.300%, 12/01/12 (Alternative Minimum Tax) 12/08 at 101 A1 3,050,640
1,225,000 Fresno Unified School District (Fresno County, California), 1998 General Obligation Refunding
Bonds, Series A, 6.550%, 8/01/20 2/13 at 103 Aaa 1,469,731
1,000,000 Pomona Unified School District, General Obligation Refunding Bonds,
Series 1997-A, 6.150%, 8/01/15 8/11 at 103 Aaa 1,165,780
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 22.6%
5,000,000 Fontana Public Financing Authority (San Bernardino County, California), Tax Allocation Revenue
Bonds (North Fontana Redevelopment Project), 1990 Series A,
7.250%, 9/01/20 9/00 at 102 BBB 5,304,650
1,750,000 Inglewood Redevelopment Agency (City of Inglewood, Los Angeles County, California),
Century Redevelopment Project, 1993 Tax Allocation Bonds, Series A,
5.900%, 7/01/03 No Opt. Call BBB 1,799,368
2,100,000 Inland Empire Solid Waste Financing Authority Revenue Bonds, 1996 Series B
(Landfill Improvement Financing Project), 6.250%, 8/01/11
(Alternative Minimum Tax) No Opt. Call Aaa 2,391,585
1,500,000 Lancaster Housing Authority, Lease Revenue Bonds(Brierwood Mobile Home Park Project),
Issue of 1994, 7.200%, 4/01/24 4/99 at 102 BBB+ 1,541,565
1,000,000 Los Angeles County Metro Transport Authority, Sales Tax Revenue Refunding Bonds, Proposition C,
Senior Subordinate, Series A, 5.000%, 7/01/23 7/08 at 101 Aaa 991,500
2,000,000 Certificates of Participation, County of Mendocino to the Mendocino County Public
Facilities Corporation, 6.000%, 8/15/23 8/03 at 102 A 2,122,860
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
TAX OBLIGATION/LIMITED (CONTINUED)
$ 1,000,000 Menifee Union School District (Riverside County, California), Certificates of Participation
(1996 School Project), 6.125%, 9/01/24 9/06 at 102 Aaa $1,109,680
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 BB 2,657,700
2,000,000 7.500%, 6/01/21 6/01 at 102 BB 2,132,620
1,000,000 City of Ontario, Community Facilities District No. 5 (Freeway Interchange Project), Special
Tax Bonds, Series 1997, 6.375%, 9/01/17 9/06 at 102 N/R 1,055,520
10,900,000 Ontario Redevelopment Financing Authority (San Bernardino County, California), 1995 Revenue
Refunding Bonds (Ontario Redevelopment Project No. 1), 7.400%, 8/01/25 No Opt. Call Aaa 14,959,814
4,700,000 San Bernardino County, California, Certificates of Participation, Series 1995
(Medical Center Financing Project), 5.500%, 8/01/22 8/05 at 102 Aaa 4,910,184
1,080,000 Redevelopment Agency of the City of Suisun City, Suisun City Redevelopment Project,
1993 Tax Allocation Refunding Bonds (County of Solano, California),
5.900%, 10/01/23 10/03 at 102 Aaa 1,154,747
- ------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 5.8%
1,000,000 Foothill/Eastern Transportation Corridor Agency, Toll Road Revenue Bonds, Series 1995A,
6.000%, 1/01/34 1/05 at 102 Baa 1,067,740
4,000,000 Harbor Department of the City of Los Angeles, Revenue Bonds, Issue of 1995, Series B,
6.625%, 8/01/19 (Alternative Minimum Tax) 8/02 at 102 AA 4,394,160
5,000,000 County of Sacramento, California, Airport System Revenue Bonds, Series 1996,
5.900%, 7/01/24 (Alternative Minimum Tax) 7/06 at 102 Aaa 5,384,050
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 32.6%
1,900,000 California Health Facilities Financing Authority, Insured Hospital Revenue Bonds (Children's
Hospital of San Francisco), 1990 Series A, 7.500%, 10/01/20
(Pre-refunded to 10/01/00) 10/00 at 102 Aaa 2,084,262
5,000,000 California Health Facilities Financing Authority, Health Facility Revenue Bonds
(Health Dimensions, Incorporated), 1990 Series A, 7.500%, 5/01/15
(Pre-refunded to 5/01/00) 5/00 at 102 Aaa 5,411,850
6,500,000 California State Department of Water Resources, Central Valley Project, Water System
Revenue Bonds, Series G, 7.125%, 12/01/24 (Pre-refunded to 6/01/99) 6/99 at 101 1/2 Aaa 6,776,510
3,000,000 California Statewide Communities Development Authority (Triad Healthcare), Revenue Refunding
Series 1992, Certificates of Participation, 6.250%, 8/01/06 No Opt. Call A+*** 3,339,780
5,000,000 Certificates of Participation (Water System Improvement Projects), Series 1990,
Castaic Lake Water Agency, California, 7.125%, 8/01/16
(Pre-refunded to 8/01/00) 8/00 at 102 Aaa 5,425,100
3,300,000 Contra Costa Water Authority (Contra Costa County, California), Water Treatment Revenue Bonds,
1990 Series A, 6.875%, 10/01/20 (Pre-refunded to 10/01/00) 10/00 at 102 N/R*** 3,575,484
5,000,000 Hospital Revenue Certificates of Participation (Desert Hospital Corporation Project), Series 1990,
8.100%, 7/01/20 (Pre-refunded to 7/01/00) 7/00 at 102 AAA 5,496,100
5,000,000 The City of Los Angeles (California), Los Angeles Convention and Exhibition Center
Certificates of Participation, 1990 Series, 7.000%, 8/15/21
(Pre-refunded to 8/15/00) 8/00 at 102 Aaa 5,420,150
4,000,000 Certificates of Participation (1990 Project A), Orange County Water District,
7.000%, 8/15/15 (Pre-refunded to 8/15/00) 8/00 at 102 Aaa 4,336,120
Pomona 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-*** 4,438,944
2,000,000 7.875%, 10/01/15 (Pre-refunded to 10/01/00) 10/00 at 102 A-*** 2,207,180
4,000,000 City of Pomona, California, Single Family Mortgage Revenue Refunding Bonds (GNMA and FHLMC
Mortgage-Backed Securities), Series 1990B, 7.500%, 8/01/23 No Opt. Call Aaa 5,279,280
2,000,000 Sierra View Local Hospital District, Insured Health Facility Revenue Bonds, Series 1992,
6.400%, 3/01/22 (Pre-refunded to 3/01/02) 3/02 at 102 A+*** 2,205,720
4,620,000 Vista Joint Powers Financing Authority, 1993 Series B, Lease Revenue Bonds (Hacienda Drive
and Buena Vista Creek), 6.100%, 9/01/20 (Pre-refunded to 9/01/00) 9/00 at 101 N/R*** 4,886,296
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
UTILITIES - 8.5%
$ 6,750,000 California Pollution Control Financing Authority, Solid Waste Disposal Revenue Bonds
(CanFibre of Riverside Project), Tax-Exempt, Series 1997A,
9.000%, 7/01/19 (Alternative Minimum Tax) 7/07 at 102 N/R $7,059,892
8,000,000 City of Chula Vista, Industrial Development Revenue Bonds (San Diego Gas and Electric Company),
1992 Series A, 6.400%, 12/01/27 (Alternative Minimum Tax) 12/02 at 102 Aaa 8,764,320
- ------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 8.5%
4,000,000 Department of Water and Power of the City of Los Angeles, California, Water Works Revenue Bonds,
Issue of 1989, 7.200%, 2/15/19 2/99 at 102 Aa 4,146,120
4,000,000 The City of Los Angeles, California, Waste Water System Revenue Bonds, Series 1993-D,
4.700%, 11/01/19 11/03 at 102 Aaa 3,841,600
10,000,000 City of Santa Maria, California, Water and Waste Water Revenue Subordinate,
Certificates of Participation, Series 1997A, 0.000%, 8/01/27 8/12 at 101 Aaa 7,790,900
- ------------------------------------------------------------------------------------------------------------------------------------
$ 171,990,000 Total Investments - (cost $165,417,699) - 98.8% 184,256,036
=============
TEMPORARY INVESTMENTS IN SHORT-TERM MUNICIPAL SECURITIES - 0.3%
$ 500,000 California Health Facilities Authority, Variable Rate Revenue Bonds (St. Joseph VMIG-1 500,000
============= Health System), Series 1991B, Variable Rate Demand Bonds, 3.150%, 7/01/09+
Other Assets Less Liabilities - 0.9% 1,676,586
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $186,432,622
====================================================================================================================
* 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.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS
Nuveen California Investment Quality Municipal Fund, Inc. (NQC)
AUGUST 31, 1998
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CAPITAL GOODS - 2.0%
$ 5,500,000 California Pollution Control Financing Authority, Fixed Rate Resource Recovery Revenue Bonds
(Waste Management, Inc.), 1991 Composite Series A, 7.150%, 2/01/11
(Alternative Minimum Tax) 2/01 at 103 Baa1 $ 5,946,325
- ------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 4.6%
1,790,000 California Educational Facilities Authority, Revenue Bonds (Chapman College), Series 1991,
7.300%, 1/01/02 1/01 at 102 Baa2 1,950,491
1,500,000 California Educational Facilities Authority Revenue Bonds (University of San Francisco), Series 1996,
6.000%, 10/01/26 10/06 at 102 Aaa 1,653,090
4,000,000 State Public Works Board of The State of California, Lease Revenue Refunding Bonds (California
Community Colleges), 1996 Series B (Various Community Colleges Projects),
5.625%, 3/01/19 3/06 at 102 Aaa 4,238,440
6,000,000 State Public Works Board of the State of California, Lease Revenue Bonds (Various California State
University Project), 1997 Series C, 5.400%, 10/01/22 10/07 at 102 A 6,189,180
- ------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 11.5%
10,000,000 California Health Facilities Financing Authority, Kaiser Permanente, Revenue Bonds, 1990 Series A,
7.000%, 12/01/10 12/00 at 102 A 10,801,900
1,475,000 California Health Facilities Financing Authority, Kaiser Permanente Refunding Revenue Bonds, 1991
Series A, 6.250%, 3/01/21 3/01 at 102 A 1,560,167
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 3,304,698
7,260,000 5.500%, 2/01/15 2/03 at 102 Baa1 7,318,153
5,000,000 City of Loma Linda, California, Hospital Revenue Bonds (Loma Linda University Medical
Center Project), Series 1993-A, 6.500%, 12/01/18 12/03 at 102 BBB 5,405,950
1,805,000 Sierra View Local Health Care District, Refunding Revenue Bonds, Series 1998,
5.100%, 7/01/12 7/08 at 101 A 1,821,931
1,000,000 City of Stockton, California, Health Facility Revenue Bonds, Dameron Hospital Association, 1997
Series A, 5.700%, 12/01/14 12/07 at 102 BBB+ 1,022,840
3,365,000 West Side Hospital District (Kern County, California), Insured Revenue Bonds, Series 1991A,
7.500%, 2/01/23 2/01 at 102 A+ 3,657,620
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 2.6%
5,250,000 California Statewide Communities Development Authority, Apartment Development Revenue
Refunding (Irvine Apartment Communities LP), 98-A4, 5.250%, 5/15/25 7/08 at 101 BBB 5,339,985
2,430,000 City of Stanton Multifamily Housing Revenue Bonds (Continental Gardens Apartments),
Series 1997, 5.625%, 8/01/29 (Alternative Minimum Tax) 8/07 at 102 AAA 2,585,933
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 1.8%
1,475,000 California Housing Finance Agency, Home Mortgage Revenue Bonds, 1988 Series C,
8.300%, 8/01/19 (Alternative Minimum Tax) 8/00 at 100 Aa 1,506,624
1,710,000 Southern California Home Financing Authority, Single Family Mortgage Revenue Bonds
(GNMA and FNMA Mortgage-Backed Securities Program), 1991 Issue A,
7.350%, 9/01/24 (Alternative Minimum Tax) 3/01 at 102 AAA 1,805,828
1,945,000 Southern California Home Financing Authority, Single Family Mortgage Revenue Bonds
(GNMA Mortgage-Backed Securities Program), 1989 Issue A, 7.625%, 10/01/22
(Alternative Minimum Tax) 4/99 at 102 AAA 2,019,338
- ------------------------------------------------------------------------------------------------------------------------------------
OTHER REVENUE - 0.5%
1,500,000 City of Irvine, Mobile Home Park Revenue Bonds (Meadows Mobile Home Park Project),
Series 1998A, 5.700%, 3/01/28 3/08 at 102 N/R 1,508,805
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
TAX OBLIGATION/GENERAL - 2.7%
$ 3,300,000 State of California, Various Purpose General Obligation Refunding Bonds,
5.125%, 10/01/27 10/07 at 101 A1 $ 3,299,835
2,395,000 Fontana Unified School District, San Bernardino County, California, 1997 General Obligation
Refunding Bonds, Series A, 0.000%, 5/01/17 5/09 at 102 Aaa 2,372,224
2,000,000 Pomona Unified School District, General Obligation Refunding Bonds,
Series 1997-A, 6.500%, 8/01/19 8/11 at 103 Aaa 2,362,260
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 20.1%
7,000,000 Certificates of Participation (1990 Adelanto Return to Custody Facility), City of Adelanto, California,
7.100%, 4/01/10 4/00 at 102 BBB+ 7,350,700
2,195,000 Bell Community Redevelopment Agency, Bell Redevelopment Project Area, 1994 Tax Allocation
Refunding Bonds, 6.300%, 11/01/13 11/03 at 102 Aaa 2,454,866
5,500,000 Refunding Certification of Participation, 1998 Series A, Kern County Board of Education,
5.200%, 5/01/28 5/08 at 102 Aaa 5,588,660
2,350,000 Lancaster Housing Authority, Lease Revenue Bonds (Brierwood Mobilehome Park Project),
Issue of 1994, 7.100%, 4/01/14 4/99 at 102 BBB+ 2,414,484
1,000,000 Los Angeles County Metro Transportation Authority, Refunding Bonds, Proposition C, Senior
Subordinate Series A, 5.000%, 7/01/23 7/08 at 101 Aaa 991,500
1,685,000 City of Ontario, Community Facilities District No. 5 (Freeway Interchange Project), Special Tax Bonds,
Series 1997, 6.375%, 9/01/17 9/06 at 102 N/R 1,778,551
3,600,000 Ontario Redevelopment Financing Authority (San Bernardino County, California), 1995 Revenue
Refunding Bonds (Ontario Redevelopment Project No. 1), 7.400%, 8/01/25 No Opt. Call Aaa 4,940,856
10,075,000 County of Orange, California, 1996 Recovery Certificates of Participation,
Series A, 6.000%, 7/01/26 7/06 at 102 Aaa 11,081,795
1,780,000 Palm Desert Financing Authority, Tax Allocation Revenue Bonds (Project Area No. 4), Series 1998,
4.750%, 10/01/13 10/07 at 102 Aaa 1,788,313
2,000,000 Redding Joint Powers Financing Authority Solid Waste and Corporate Yard, Lease Revenue Bonds,
Series 1993A, 5.500%, 1/01/13 1/04 at 102 A 2,055,060
1,500,000 City of Richmond, Limited Obligation Refunding Improvement Bonds, Reassessment District No. 855
(Atlas Road West and Interchange), 6.600%, 9/02/19 9/98 at 103 N/R 1,551,885
9,000,000 Redevelopment Agency of the City of San Jose, Merged Area Redevelopment Project,
Tax Allocation Bonds, Series 1993, 4.750%, 8/01/24 2/04 at 102 Aaa 8,624,340
8,000,000 Redevelopment Agency of the City of San Jose (California), Merged Area Redevelopment Project,
Tax Allocation Bonds, Series 1998, 5.250%, 8/01/29 8/08 at 102 A 8,059,600
2,000,000 Redevelopment Agency of the City of San Leandro, Plaza 1 and Plaza 2 Redevelopment Projects,
1993 Tax Allocation Bonds, Series A, 6.125%, 6/01/23 6/03 at 102 A- 2,122,480
- ------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 5.9%
1,000,000 Foothill/Eastern Transportation Corridor Agency, Toll Road Revenue Bonds,
Series 1995A, 6.000%, 1/01/34 1/05 at 102 Baa 1,067,740
12,000,000 Airports Commission, City and County of San Francisco, California, San Francisco International Airport,
Second Series Revenue Bonds, Issue 11 (Noise Insulation Program), 6.250%, 5/01/26
(Alternative Minimum Tax) 5/05 at 101 Aaa 13,130,280
3,520,000 Airports Commission City and County of San Francisco, California, San Francisco International Airport,
Second Revenue Bonds, Issue 12A, 5.625%, 5/01/11 (Alternative Minimum Tax) 5/06 at 101 Aaa 3,779,037
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 36.4%
12,830,000 California State Various Purpose General Obligation Bonds, Series 1995, 5.750%, 3/03/13
(Pre-refunded to 3/01/05) 3/05 at 101 A+*** 14,261,571
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 2,489,451
4,395,000 7.000%, 5/01/20 (Pre-refunded to 5/01/00) 5/00 at 102 Aaa 4,723,263
8,075,000 California Health Facilities Financing Authority, Hospital Revenue Refunding Bonds
(Cedars-Sinai Medical Center), Series 1990, 7.000%, 11/01/15
(Pre-refunded to 11/01/00) 11/00 at 102 N/R*** 8,793,917
3,000,000 California Statewide Communities Development Authority (Triad Healthcare), Revenue Refunding
Series 1992, Certificates of Participation, 6.250%, 8/01/06 No Opt. Call A+*** 3,339,780
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
U.S. GUARANTEED (CONTINUED)
$ 3,500,000 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)), 6.875%, 11/01/14
(Pre-refunded to 11/01/04) 11/04 at 102 Aaa $ 4,128,180
5,885,000 Calaveras County Water District (California), Certificates of Participation (1991 Ebbetts Pass Water
System Improvements Project), 6.900%, 5/01/16 (Pre-refunded to 5/01/01) 5/01 at 102 Aaa 6,478,855
5,500,000 Certificates of Participation (Open Space Acquisition Project), City of Cupertino, California, Cupertino
Public Facilities Corporation, 7.125%, 4/01/16 (Pre-refunded to 4/01/01) 4/01 at 102 N/R*** 6,058,415
4,500,000 Hospital Revenue Certificates of Participation (Desert Hospital Corporation Project), Series 1990,
8.000%, 7/01/10 (Pre-refunded to 7/01/00) 7/00 at 102 AAA 4,938,570
8,650,000 Fontana Public Financing Authority (San Bernardino County, California), Subordinate
Lien Tax Allocation Revenue Bonds (North Fontana Redevelopment Project),
1991 Series A, 7.750%, 12/01/20 (Pre-refunded to 12/01/01) 12/01 to 102 N/R*** 9,859,184
2,750,000 Certificates of Participation, Fresno Unified School District, Fresno County, California,
Series of 1991A For Project Phase VI, 7.200%, 5/01/11
(Pre-refunded to 5/01/01) 5/01 at 102 A2*** 3,042,490
1,050,000 Certificates of Participation, Fresno Unified School District, Fresno County, California,
Series of 1992B for Project Phase IX, 6.600%, 5/01/07
(Pre-refunded to 5/01/00) 5/00 at 102 A2*** 1,120,980
2,500,000 The Community Redevelopment Agency of the City of Los Angeles, California, Central
Business District Redevelopment Project, Tax Allocation Refunding Bonds,
Series 1987-G, 6.750%, 7/01/10 7/10 at 100 BBB*** 2,595,325
3,500,000 The City of Los Angeles, California, Wastewater System Revenue Bonds, Series 1991-A,
7.100%, 2/01/21 (Pre-refunded to 2/01/99) 2/99 at 102 Aaa 3,623,445
5,500,000 Los Angeles County Metropolitan Transportation Authority (California), Proposition A Sales Tax
Revenue Refunding Bonds, Series 1993-A, 6.750%, 7/01/20
(Pre-refunded to 7/01/01) 7/01 at 102 Aaa 6,059,405
8,000,000 Mt. Diablo Hospital District, Insured Hospital Revenue Bonds, 1990 Series A, 8.000%, 12/01/11
(Pre-refunded to 12/01/00) 12/00 at 102 Aaa 8,906,800
8,000,000 Redevelopment Agency of the City of Pittsburg, California, Los Medanos Community Development
Project, Tax Allocation Bonds, Series 1991, 7.150%, 8/01/21
(Pre-refunded to 8/01/01) 8/01 at 103 Aaa 8,990,640
6,505,000 Certificates of Participation (City of Poway 1991 Capital Improvement Project Poway Royal
Mobilehome Park), Poway Redevelopment Agency, 7.200%, 1/01/24
(Pre-refunded to 1/01/01) 1/01 at 102 Aaa 7,140,343
3,500,000 West Contra Costa Hospital District, Insured Health Facility Refunding Revenue Bonds,
Series 1994, 6.500%, 11/01/17 (Pre-refunded to 11/01/04) 11/04 at 102 N/R*** 4,035,885
- ------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 6.0%
750,000 Anaheim Public Financing Authority Revenue Bonds, Series 1998, City of Anaheim Electric
Distribution Facilities, 5.000%, 10/01/23 10/08 at 101 AAA 743,610
7,945,000 City of Chula Vista, Industrial Development Revenue Bonds (San Diego Gas and Electric Company),
1992 Series A, 6.400%, 12/01/27 (Alternative Minimum Tax) 12/02 at 102 Aaa 8,704,065
7,990,000 Department of Water and Power of the City of Los Angeles, Electric Plant Revenue Bonds,
Issue of 1991, 7.100%, 1/15/31 1/01 at 102 Aa3 8,732,191
- ------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 4.5%
4,075,000 State of California Department of Water Resources, Central Valley Project Water System
Revenue Bonds, Series Q, 5.375%, 12/01/27 12/06 at 101 1/2 Aaa 4,221,700
5,500,000 Revenue Certificates of Participation, Series 1993A, Orange County Water District,
5.000%, 8/15/18 8/03 at 100 Aa 5,401,110
4,025,000 City of Stockton, Revenue Certificates of Participation, 1998 Series A (Wastewater System Project),
5.200%, 9/01/29 9/08 at 102 Aaa 4,091,533
- ------------------------------------------------------------------------------------------------------------------------------------
$ 278,380,000 Total Investments - (cost $272,200,791) - 98.6% 298,932,472
=============
Other Assets Less Liabilities - 1.4% 4,175,046
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $303,107,518
====================================================================================================================
* 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. Pre-refunded securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS
Nuveen California Select Quality Municipal Fund, Inc. (NVC)
AUGUST 31, 1998
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CONSUMER STAPLES - 1.9%
$ 9,150,000 California Pollution Control Financing Authority, Sewage and Solid Waste Disposal Facilities
Revenue Bonds (Anheuser-Busch Project), Series 1996, 5.750%, 12/01/30
(Alternative Minimum Tax) 12/06 at 101 A1 $9,635,133
- ------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 2.1%
5,000,000 California Educational Facilities Authority Revenue Bonds (Chapman University), Series 1996,
5.125%, 10/01/26 10/06 at 102 AAA 4,985,000
6,000,000 The Regents of the University of California Refunding Revenue Bonds (1989 Multiple Purpose Projects),
Series C, 5.000%, 9/01/23 9/03 at 102 Aaa 5,928,300
- ------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 8.2%
3,000,000 California Health Facilities Financing Authority, Insured Health Facility Refunding Revenue Bonds
(Catholic Healthcare West), 1994 Series A, 4.750%, 7/01/19 7/04 at 102 Aaa 2,890,260
5,000,000 California Health Facilities Financing Authority, Insured Health Facility Revenue Bonds
(The H.E.L.P. Group), 1991 Series A, 7.000%, 8/01/21 8/01 at 102 A 5,453,750
7,485,000 California Health Facilities Financing Authority, Kaiser Permanente Refunding Revenue Bonds,
1991 Series A, 6.500%, 3/01/11 3/01 at 102 A 8,010,597
1,775,000 California Statewide Communities Development Authority, Certificates of Participation,
St. Joseph Health System Obligated Group, 5.500%, 7/01/23 7/03 at 102 AA 1,825,197
6,500,000 City of Loma Linda, California Hospital Revenue Refunding Bonds (Loma Linda University
Medical Center Project), Series 1989-B, 7.000%, 12/01/15 12/99 at 102 Aaa 6,863,610
9,350,000 City of Loma Linda, California, Hospital Revenue Refunding Bonds (Loma Linda University
Medical Center Project), Series 1993-C, 5.375%, 12/01/22 12/03 at 102 Aaa 9,563,087
6,000,000 County of Madera, California, Certificates of Participation (Valley Children's Hospital Project),
Series 1995, 5.750%, 3/15/28 3/05 at 102 Aaa 6,397,500
1,050,000 City of Stockton, California, Health Facility Revenue Bonds, Dameron Hospital Association,
1997 Series A, 5.450%, 12/01/10 12/07 at 102 BBB+ 1,117,169
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 1.6%
4,250,000 California Statewide Communities Development Authority Apartment Development,
Revenue Refunding (Irvine Apartment Communities LP), 98-A4,
5.250%, 5/15/25 7/08 at 101 BBB 4,322,845
3,455,000 California Housing Finance Agency Housing Revenue Bonds (Insured), 1991 Series A,
7.200%, 2/01/26 (Alternative Minimum Tax) 8/01 at 102 Aaa 3,687,418
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 9.8%
6,230,000 California Housing Finance Agency Single Family Mortgage Bonds, 1995 Issue A-2,
6.350%, 8/01/15 (Alternative Minimum Tax) 5/05 at 102 Aaa 6,674,822
California Housing Finance Agency Single Family Mortgage Bonds, 1995 Issue B:
1,890,000 6.250%, 2/01/14 (Alternative Minimum Tax) 10/05 at 102 Aaa 1,990,586
8,470,000 6.250%, 2/01/18 (Alternative Minimum Tax) 10/05 at 102 Aaa 9,068,914
400,000 6.300%, 8/01/24 (Alternative Minimum Tax) 10/05 at 102 Aaa 428,224
3,625,000 California Housing Finance Agency Home Mortgage Revenue Bonds, 1989 Series F,
7.250%, 8/01/17 2/00 at 102 Aa 3,782,289
2,820,000 California Housing Finance Agency Home Mortgage Revenue Bonds, 1991 Series G,
7.050%, 8/01/27 (Alternative Minimum Tax) 8/01 at 102 Aa2 2,986,634
5,990,000 California Housing Finance Agency Home Mortgage Revenue Bonds, 1995 Series M,
6.150%, 8/01/27 (Alternative Minimum Tax) 2/06 at 102 Aaa 6,381,626
5,920, 000 California Housing Finance Agency Home Mortgage Revenue Bonds, 1996 Series H,
6.250%, 8/01/27 (Alternative Minimum Tax) 8/06 at 102 Aa 6,344,405
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
HOUSING/SINGLE FAMILY (CONTINUED)
$ 2,955,000 California Rural Home Mortgage Finance Authority Single Family Mortgage Revenue Bonds
(Mortgage-Backed Securities Program), 1995 Series B, 7.750%, 9/01/26
(Alternative Minimum Tax) No Opt. Call AAA $3,469,318
5,655,000 Puerto Rico Housing Bank and Finance Agency, Affordable Housing Mortgage Subsidy Program,
Single Family Mortgage Revenue Bonds, Portfolio I (AMT), 6.250%, 4/01/29
(Alternative Minimum Tax) 4/05 at 102 Aaa 6,013,301
2,835,000 Southern California Home Financing Authority Single Family Mortgage Revenue Bonds
(GNMA and FNMA Mortgage-Backed Securities Program), 1991 Issue B, 6.900%, 10/01/24
(Alternative Minimum Tax) 10/01 at 102 AAA 2,993,108
- ------------------------------------------------------------------------------------------------------------------------------------
LONG TERM CARE - 1.2%
3,000,000 California Statewide Communities Development Authority, Series A, Certificates of Participation,
Pacific Homes, 6.000%, 4/01/17 4/03 at 102 A+ 3,206,850
2,800,000 The City of Los Angeles, Insured Certificates of Participation, Ararat Home of Los Angeles,
7.250%, 6/01/21 6/01 at 102 A+ 3,052,840
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 4.0%
11,405,000 State of California Various Purpose General Obligation Bonds, 6.400%, 2/01/20
(Alternative Minimum Tax) 2/00 at 100 A1 11,654,770
8,665,000 State of California, Veterans General Obligation Bonds, Series BH, 5.600%, 12/01/32
(Alternative Minimum Tax) 12/03 at 102 A1 8,924,084
150,000 State of California, Various Purpose General Obligation Bonds,
5.750%, 3/01/23 3/04 at 102 A1 158,355
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 18.3%
10,000,000 California State Public Works Board Lease Revenue Refunding Bonds, 1998B,
Department of Corrections, 5.000%, 9/01/21 9/08 at 101 Aaa 9,919,000
9,725,000 Avalon Community Improvement Agency Community Improvement Project Area Tax Allocation
Bonds, Series 1991 A, 7.250%, 8/01/21 8/01 at 102 A- 10,769,757
2,215,000 Brea Public Financing Authority (Orange County, California), 1991 Tax Allocation Revenue
Bonds, Series A (Redevelopment Project AB), 6.750%, 8/01/22 8/01 at 102 Aaa 2,422,745
6,000,000 Cerritos Public Financing Authority (Cerritos, California), 1993 Revenue Bonds,
Series A (Tax Exempt) (Los Cerritos Redevelopment Project Loan),
6.050%, 11/01/20 11/03 at 102 A- 6,365,820
285,000 ABAG Finance Corporation (California), Series A Certificates of Participation, Cities of Concord,
Saratoga, Santa Cruz, and South Gate, 7.625%, 6/01/11 12/98 at 100 A- 287,827
5,000,000 Culver City Redevelopment Financing Authority, 1993 Tax Allocation Refunding Revenue
Bonds, 5.000%, 11/01/23 11/03 at 102 Aaa 4,939,700
City of Inglewood, California, Certificates of Participation (1991 Civic Center Improvement Project):
5,515,000 7.000%, 8/01/11 8/01 at 102 BBB- 5,947,486
5,000,000 7.000%, 8/01/19 8/01 at 102 BBB- 5,386,450
3,000,000 6.500%, 8/01/21 8/01 at 102 BBB- 3,180,510
3,510,000 Long Beach Bond Finance Authority, Lease Revenue and Refunding Bonds, Civic Center Project,
Series A, 5.000%, 10/01/27 10/07 at 102 Aaa 3,477,954
4,255,000 Los Angeles Unified School District, Certificates of Participation (Capital Facilities Project, 1991A),
7.000%, 5/01/99 No Opt. Call A 4,352,822
7,500,000 Los Angeles County Metropolitan Transport Authority, Sales Tax Revenue Refunding Bonds,
Proposition C Senior Subordinate, Series A, 5.000%, 7/01/23 7/08 at 101 Aaa 7,436,250
3,605,000 Oakland State Building Authority, Lease Revenue Bonds (Elihu M. Harris State Office Building),
1998 Series A, 5.000%, 4/01/23 4/08 at 101 Aaa 3,574,610
1,390,000 City of Palm Springs Financing Authority Revenue (Tax Allocation), Bonds, 1991 Series B
(Agency Loans), 6.800%, 8/01/11 8/01 at 102 A- 1,491,915
2,205,000 Pleasanton Joint Powers Financing Authority Reassessment Revenue Bonds, 1993 Series A,
6.150%, 9/02/12 9/03 at 102 Baa3 2,377,431
2,550,000 Riverside Public Financing Authority (Riverside County, California), 1991 Revenue Bonds,
Series A (Multiple Project Loans), 8.000%, 2/01/18 2/01 at 102 N/R 2,721,131
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
TAX OBLIGATION/LIMITED (CONTINUED)
$ 1,250,000 CSAC Lease Financing Program Certificates of Participation (San Benito County
California - Jail and Juvenile Hall Facilities Project), 7.400%, 8/01/11 8/00 at 100 Baa1 $1,288,663
5,235,000 City and County of San Francisco, Redevelopment Financing Authority, 1993 Series C Tax
Allocation Revenue Bonds (San Francisco Redevelopment Projects),
5.125%, 8/01/18 8/03 at 103 A 5,215,369
6,925,000 Santa Monica Community College District, Refunding Certificates of Participation 1991
Series A, 7.150%, 6/01/08 6/01 at 102 A 7,542,018
5,000,000 West Hollywood Certificates of Participation Refunding, 5.000%, 2/01/25 2/08 at 102 Aaa 4,938,400
- ------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 3.4%
3,275,000 California Statewide Communities Development Authority, Special Facilities Lease Revenue
Bonds, 1997 Series A, 5.700%, 10/01/33 (Alternative Minimum Tax) 10/07 at 102 Baa3 3,379,407
2,000,000 California Statewide Communities Development Authority, Special Facilities Lease Revenue
Bonds, 1997 Series A (United Air Lines, Inc. - San Francisco International Airport Projects),
5.625%, 10/01/34 (Alternative Minimum Tax) 10/07 at 102 Baa3 2,052,160
7,500,000 Harbor Department of the City of Los Angeles Revenue Bonds, Issue
of 1996, 6.200%, 8/01/25 (Alternative Minimum Tax) 8/06 at 101 Aaa 8,259,375
3,450,000 Airport Commission, City and County of San Francisco, California, San Francisco International
Airport, Second Series Revenue Bonds, Issue 5, 6.500%, 5/01/24
(Alternative Minimum Tax) 5/04 at 102 Aaa 3,820,392
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 32.2%
1,875,000 California State Various Purpose General Obligation Bonds, Full Faith and Credit,
5.750%, 3/01/23 (Pre-refunded to 3/01/04) 3/04 at 102 A+*** 2,079,000
10,500,000 California Health Facilities Financing Authority, Health Facility Revenue Bonds (Pomona
Valley Hospital Medical Center), 1989 Series A, 7.000%, 1/01/18
(Pre-refunded to 1/01/00) 1/00 at 101 1/2 N/R*** 11,118,030
3,000,000 California Pollution Control Financing Authority, Solid Waste Revenue Bonds (North County
Recycling Center), 1991 Series A Bonds, 6.750%, 7/01/17 7/02 at 102 Aaa 3,340,410
3,310,000 State Public Works Board of the State of California, Lease Revenue Bonds (California Community
Colleges), 1991 Series A, 7.250%, 9/01/05 (Pre-refunded to 9/01/01) 9/01 at 102 Aaa 3,707,630
10,525,000 State Public Works Board of the State of California, Lease Revenue Bonds (Department
of Corrections), 1991 Series A (State Prisons-Imperial County), 5.750%, 9/01/21
(Pre-refunded to 9/01/01) 9/01 at 100 A*** 11,149,238
5,000,000 State Public Works Board of the State of California Lease Revenue Bonds (The Trustee of The
California State University), 1995 Series A (Various California State University
Projects), 6.000%, 9/01/15 (Pre-refunded to 9/01/05) 9/05 at 100 A*** 5,619,900
5,120,000 ABAG Finance Authority for Nonprofit Corporations, Certificates of Participation (Stanford
University Hospital), California, Series 1993, 5.250%, 11/01/08 11/03 at 102 A1*** 5,424,435
5,285,000 Brea Public Financing Authority (Orange County, California), 1991 Tax Allocation Revenue Bonds,
Series A (Redevelopment Project AB), 6.750%, 8/01/22 (Pre-refunded to 8/01/01)8/01 at 102 Aaa 5,834,746
2,110,000 County of Contra Costa, California, 1989 Home Mortgage Revenue Bonds (GNMA Mortgage-Backed
Securities Program), 7.700%, 11/01/09 (Alternative Minimum Tax) No Opt. Call Aaa 2,635,749
7,000,000 East Bay Municipal Utility District (Alameda and Contra Costa Counties, California), Water
System Subordinated Revenue Bonds, Series 1991, 6.375%, 6/01/12
(Pre-refunded to 12/01/01) 12/01 at 102 Aaa 7,711,550
10,000,000 Los Angeles County Public Works Finance Authority, Revenue Bonds Series 1994A (Los Angeles
County Regional Park and Open Space District), 6.000%, 10/01/15
(Pre-refunded to 10/01/04) 10/04 at 102 AA*** 11,288,200
7,500,000 Los Angeles County Metropolitan Transportation Authority (California), Proposition A Sales Tax
Revenue Refunding Bonds, Series 1993 A, 6.900%, 7/01/21
(Pre-refunded to 7/01/01) 7/01 at 102 Aaa 8,292,900
6,375,000 Mt. Diablo Hospital District, Insured Hospital Revenue Bonds, 1990 Series A,
7.000%, 12/01/17 (Pre-refunded to 12/01/00) 12/00 at 102 Aaa 6,963,923
1,705,000 City of Palm Springs Financing Authority Revenue (Tax Allocation), Bonds 1991 Series B
(Agency Loans), 6.800%, 8/01/11 (Pre-refunded to 8/01/05) 8/05 at 100 N/R*** 1,988,098
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
U.S. GUARANTEED (CONTINUED)
$ 3,700,000 Riverside Public Financing Authority, 8.000%, 2/01/18
(Pre-refunded to 2/01/01) 2/01 at 102 N/R*** $4,129,829
19,000,000 Sacramento City Financing Authority 1991 Revenue Bonds, 6.800%, 11/01/20
(Pre-refunded to 11/01/01) 11/01 at 102 Aaa 21,133,320
3,920,000 City of San Diego, California, Certificate of Participation (Balboa Park and Mission Bay
Park Capital Improvements Program), Series 1991, 6.900%, 7/15/21
(Pre-refunded to 7/15/01) 7/01 at 100 Aa*** 4,264,764
5,000,000 San Mateo County Joint Powers Financing Authority Lease Revenue Bonds (San Mateo
County Health Center), 1994 Series A, 6.125%, 7/15/14 (Pre-refunded to 7/15/04)7/04 at 102 Aaa 5,668,200
4,000,000 County of Santa Clara, California, Certificates of Participation (The Terraces of Los Gatos
Project), 1991 Series, American Baptist Homes of the West, 6.900%, 3/01/18
(Pre-refunded to 3/01/01) 3/01 at 102 N/R*** 4,375,480
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-*** 7,581,048
3,000,000 6.750%, 10/01/21 (Pre-refunded to 10/01/01) 10/01 at 102 A-*** 3,317,310
6,500,000 Tri-City Hospital District (Oceanside, California), Insured Revenue Bonds, Series 1991,
7.500%, 2/01/17 (Pre-refunded to 2/01/02) 2/02 at 102 Aaa 7,387,965
10,000,000 Tustin Community Redevelopment Agency Town Center Area Redevelopment Project,
Subordinate Tax Allocation Bonds, Series 1991, 6.800%, 12/01/16
(Pre-refunded to 12/01/01) 12/01 at 102 Aaa 11,145,700
3,300,000 The Regents of the University of California, Refunding Revenue Bonds (Multiple Purpose
Projects), Series A, 6.875%, 9/01/16 (Pre-refunded to 9/01/02) 9/02 at 102 AA-*** 3,738,636
3,000,000 Westminster Redevelopment Agency, Westminster Commercial Redevelopment Project No. 1,
1991 Tax Allocation Bonds, Series A (Orange County, California), 7.300%, 8/01/21
(Pre-refunded to 8/01/01) 8/01 at 102 AAA*** 3,356,280
1,535,000 Yosemite Community College District, Certificates of Participation, 7.750%, 7/01/11
(Pre-refunded to 7/01/01) 7/01 at 102 N/R*** 1,683,496
- ------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 10.7%
9,650,000 California Pollution Control Financing Authority, Pollution Control Revenue Bonds (Southern
California Edison Company), 1991 Series, 6.900%, 12/01/17
(Alternative Minimum Tax) 7/01 at 102 N/R*** 10,550,635
10,350,000 California Pollution Control Financing Authority, Pollution Control Revenue Bonds (San Diego
Gas and Electric Company), 1991 Series A, 6.800%, 6/01/15
(Alternative Minimum Tax) No Opt. Call A1 12,274,582
9,500,000 California Pollution ControlFinancing Authority Exempt Facilities Revenue Bonds,
Series 1996 (Mobil Oil Corporation Project), 5.500%, 12/01/29
(Alternative Minimum Tax) 12/06 at 102 AA 9,772,840
1,000,000 Anaheim Public Financing Authority Revenue Bonds, Series 1998, City of Anaheim Electric
Distribution Facilities, 5.000%, 10/01/23 10/08 at 101 AAA 991,480
3,500,000 Department of Water and Power of the City of Los Angeles, California, Electric Plant
Revenue Bonds, Second Issue of 1990, 7.250%, 9/15/30 9/00 at 102 Aa3 3,797,464
6,375,000 Department of Water and Power of the City of Los Angeles Electric Plant Revenue Bonds,
Issue of 1991, 7.100%, 1/15/31 1/01 at 102 Aa3 6,967,173
10,500,000 Southern California Public Power Authority, Transmission Project Revenue Bonds, 1993
Subordinate Refunding Series (Southern Transmission Project),
5.000%, 7/01/22 7/03 at 100 Aaa 10,376,834
- ------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 5.5%
7,500,000 Eastern Municipal Water District, Water and Sewer Revenue Certification of Participation,
Refunding, 5.000%, 7/01/21 7/08 at 101 Aaa 7,438,950
3,000,000 The City of Los Angeles Wastewater System Revenue Bonds, Refunding Series 1991-C,
7.100%, 6/01/18 6/99 at 102 A1 3,128,430
10,135,000 The Metropolitan Water District of Southern California Water Revenue Bonds, Issue of 1992,
8.000%, 7/01/08 No Opt. Call AA 13,129,587
3,000,000 Metropolitan Water District, Southern California Waterworks Revenue Bonds, 1997 Series A,
5.000%, 7/01/37 1/08 at 101 AA 2,966,820
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
WATER AND SEWER (CONTINUED)
West Basin Municipal Water District Revenue Certificates of Participation, Series 1998A:
$ 1,545,000 0.000%, 8/01/23 8/08 at 45 19/32 Aaa $ 420,038
1,595,000 0.000%, 8/01/24 8/08 at 43 2/32 Aaa 409,740
1,595,000 0.000%, 8/01/25 8/08 at 40 13/16 Aaa 388,382
1,595,000 0.000%, 8/01/26 8/08 at 38 23/32 Aaa 368,093
- ------------------------------------------------------------------------------------------------------------------------------------
$ 477,115,000 Total Investments - (cost $463,207,177) - 98.9% 506,874,069
=============
Other Assets Less Liabilities - 1.1% 5,796,613
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $512,670,682
====================================================================================================================
* 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. Pre-refunded securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS
Nuveen California Quality Income Municipal Fund, Inc. (NUC)
AUGUST 31, 1998
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
EDUCATION AND CIVIC ORGANIZATIONS - 1.5%
$ 1,000,000 Auxiliary Organization Revenue Certificates of Participation (The University Corporation-California
State University, Northridge), Series 1996, 6.000%, 4/01/26 4/06 at 101 Aaa $1,090,110
2,000,000 California Educational Facilities Authority, Revenue Bonds (University of San Francisco), Series 1996,
6.000%, 10/01/26 10/06 at 102 Aaa 2,204,120
4,000,000 State Public Works Board of the State of California, Lease Revenue
Refunding Bonds (California Community Colleges), 1996 Series B (Various
Community Colleges Projects), 5.625%, 3/01/19 3/06 at 102 Aaa 4,238,440
- ------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 7.1%
4,000,000 California Health Facilities Financing Authority, Insured Health Facility Revenue Refunding Bonds
(Valley Memorial Hospital), 1993 Series A, 6.000%, 5/01/17 5/03 at 102 A+ 4,264,960
3,225,000 California Health Facilities Financing Authority, Kaiser Permanente, Revenue Bonds, 1990 Series A,
6.500%, 12/01/20 12/00 at 102 A 3,438,205
14,000,000 California Statewide Communities Development Authority, Revenue Certificates of Participation
(Cedars-Sinai Medical Center), 6.500%, 8/01/15 8/02 at 102 A1 15,450,680
1,250,000 California Statewide Communities Development Authority, Hospital Revenue Certificates of Participation,
Cedars-Sinai Medical Center, Series 1992, 6.500%, 8/01/12 No Opt. Call A1 1,440,688
3,110,000 City of Loma Linda, California, Hospital Revenue Bonds (Loma Linda University Medical Center Project),
Series 1993-A, 6.500%, 12/01/18 12/03 at 102 BBB 3,362,501
2,465,000 City of Sacramento, Insured Health Facility Revenue Bonds (CARES), 1998
Series A, 5.300%, 1/01/24 7/07 at 102 A+ 2,502,394
1,855,000 City of Torrance (California), Hospital Revenue Bonds (Little Company of Mary Hospital Project),
Series 1992, 6.875%, 7/01/15 7/02 at 102 A 2,026,940
3,025,000 Tulare Local Hospital District, Insured Health Facility Revenue Bonds,
Series 1991A, 6.750%, 12/01/21 12/01 at 102 A+ 3,285,059
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 4.1%
5,250,000 California Housing Finance Agency, Multi-Unit Rental Housing Revenue Bonds II, 1992 Series B,
6.700%, 8/01/15 8/02 at 102 A1 5,684,753
3,900,000 City of Stanton Multifamily Housing Revenue Bonds (Continental Gardens Apartments), Series 1997,
5.625%, 8/01/29 (Alternative Minimum Tax) (Mandatory put 8/01/09) 8/07 at 102 AAA 4,150,263
8,000,000 City of Vista, Multifamily Housing Revenue Refunding Bonds (Vista Hacienda Project), 1992 Series A,
6.950%, 4/01/17 4/02 at 102 AAA 8,536,240
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 1,069,710
1,030,000 7.000%, 11/01/14 5/02 at 103 Aa3 1,103,037
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 2.8%
1,715,000 California Housing Finance Agency Home Mortgage Revenue Bonds, 1991 Series G, 7.050%, 8/01/27
(Alternative Minimum Tax) 8/01 at 102 Aa2 1,816,339
3,285,000 California Housing Finance Agency, Home Mortgage Revenue Bonds, 1995 Series B, 7.125%, 2/01/26
(Alternative Minimum Tax) 2/05 at 102 Aa 3,562,615
2,255,000 City of Corona (California), Single Family Mortgage Revenue Bonds, Series 1996A (Senior),
6.050%, 5/01/27 11/06 at 102 Aaa 2,311,217
2,845,000 County of Riverside, California, Single Family Mortgage Revenue Bonds (GNMA Mortgage-Backed
Securities Program), Issue B of 1989, 7.600%, 11/01/19
(Alternative Minimum Tax) 11/99 at 102 AAA 2,952,313
1,655,000 Southern California Home Financing Authority, Single Family Mortgage Revenue Bonds (GNMA and
FNMA Mortgage-Backed Securities Program), 1991 Issue A, 7.350%, 9/01/24
(Alternative Minimum Tax) 3/01 at 102 AAA 1,747,746
1,645,000 Southern California Home Financing Authority, Single Family Mortgage Revenue Bonds (GNMA and FNMA
Mortgage-Backed Securities Program), 1992 Issue A, 6.750%, 9/01/22
(Alternative Minimum Tax) 3/02 at 102 AAA 1,736,873
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
LONG TERM CARE - 1.8%
$ 2,465,000 California Health Facilities Financing Authority, California Mortgage Lien Insured Health Facilities
Revenue Bonds (Casa De Las Campanas), 1998 Series A, 5.250%, 8/01/17 8/08 at 100 A+ $2,492,435
6,000,000 California Health Facilities Financing Authority, Insured Revenue Bonds (Southern California
Presbyterian Homes), Series 1991, 6.750%, 6/01/21 6/01 at 102 A+ 6,458,460
- ------------------------------------------------------------------------------------------------------------------------------------
OTHER REVENUE - 1.0%
2,300,000 City of Irvine, Mobile Home Park Revenue Bonds (Meadows Mobile Home Park Project), Series
1998A, 5.700%, 3/01/18 3/08 at 102 N/R 2,321,252
2,725,000 Oceanside Mobile Home Park Finance Authority, Mobile Home Park Revenue Bonds (Laguna Vista
Mobile Estates Project), 5.800%, 3/01/28 3/08 at 102 N/R 2,756,692
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 3.8%
State of California, Various Purpose General Obligation Bonds:
10,000,000 6.400%, 9/01/07 No Opt. Call A1 11,663,300
2,500,000 7.000%, 2/01/09 No Opt. Call A1 3,052,425
295,000 5.750%, 3/1/19 3/05 at 101 A1 312,066
4,000,000 State of California, Veterans General Obligation Bonds, Series BN (Non-AMT),
5.450%, 12/01/28 12/03 at 101 A1 4,067,360
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 20.4%
4,825,000 Certificates of Participation (1991 Financing Project), County of Alameda, California, Alameda County
Public Facilities Corporation, 6.000%, 9/01/21 9/06 at 102 Aaa 5,300,697
2,200,00 City of Coalinga, California, Certificates of Participation (1989 Coalinga Return to Custody Facility),
7.000%, 4/01/10 4/00 at 102 BBB+ 2,308,306
Commerce Community Development, Community 1998 Tax Allocation
Refunding, Series A, Merged Area Redevelopment (Project 2 and
3):
1,000,000 5.650%, 8/01/18 8/08 at 102 N/R 1,012,500
2,765,000 5.700%, 8/01/28 8/08 at 102 N/R 2,799,452
2,100,000 Cudahy Redevelopment Agency, Cudahy Redevelopment Project, Tax Allocation Refunding
Bonds, Series 1994A, 6.700%, 9/01/24 9/03 at 102 BBB 2,277,849
5,000,000 Culver City Redevelopment Financing Authority, 1993 Tax Allocation Refunding Revenue
Bonds, 4.600%, 11/01/20 11/03 at 102 Aaa 4,714,350
3,000,000 Fontana Public Financing Authority (San Bernardino County, California), Tax Allocation
Revenue Bonds (North Fontana Redevelopment Project), 1990 Series A,
7.250%, 9/01/20 9/00 at 102 BBB 3,182,790
1,700,000 Foothill-De Anza Community College District (County of Santa Clara, California), Certificates
of Participation (1992 De Anza Campus Center Project), 7.350%, 3/01/07 3/02 at 102 A- 1,881,781
2,725,000 City of Fresno, California, Certificates of Participation (1992 Street Improvement Project),
6.625%, 12/01/11 12/00 at 102 A1 2,931,855
4,000,000 Inland Empire Solid Waste Financing Authority Revenue Bonds, 1996 Series B (Landfill
Improvement Financing Project), 6.250%, 8/01/11 (Alternative Minimum Tax) No Opt. Call Aaa 4,555,400
5,475,000 Community Facilities District No. 90-1 of the City of Lancaster, 1998 Special Tax Refunding Bonds,
4.900%, 9/01/15 9/07 at 102 Aaa 5,503,251
5,435,000 Community Redevelopment Financing Authority of the Community Redevelopment 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 9/02 at 102 Ba 5,721,968
2,000,000 Redevelopment Agency of the City of Moorpark, Moorpark Redevelopment Project, 1993
Tax Allocation Bonds, 6.125%, 10/01/18 10/03 at 102 A- 2,127,660
2,500,000 Certificates of Participation (Western Nevada County Solid Waste Management System -
1991 Project), County of Nevada, California, 7.500%, 6/01/21 6/01 at 102 BB 2,665,775
15,300,000 Ontario Redevelopment Financing Authority (San Bernardino County, California), 1995
Revenue Refunding Bonds (Ontario Redevelopment Project No. 1),
7.400%, 8/01/25 No Opt. Call Aaa 20,998,638
3,400,000 Orange County Development Agency, Santa Ana Heights Project Area, 1993 Tax Allocation
Revenue Bonds, 6.125%, 9/01/23 9/03 at 102 BBB 3,604,034
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
TAX OBLIGATION/LIMITED (CONTINUED)
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+ $3,388,890
2,250,000 6.000%, 2/15/08 No Opt. Call AA+ 2,558,610
2,000,000 County of Orange, California, 1996 Recovery Certificates of Participation,
Series A, 6.000%, 7/01/26 7/06 at 102 Aaa 2,199,860
7,145,000 Palm Desert Financing Authority, Tax Allocation Revenue Bonds (Project Area No. 4), Series 1998,
5.200%, 10/01/28 10/07 at 102 Aaa 7,280,398
12,000,000 Redevelopment Agency of the City of San Jose (California), Merged Area Redevelopment
Project, Tax Allocation Bonds, Series 1998, 5.250%, 8/01/29 8/08 at 102 A 12,089,400
3,000,000 City of Santa Barbara, California, Certificates of Participation (Harbor Refunding Project),
6.750%, 10/01/27 10/02 at 102 A 3,278,490
- ------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 3.2%
2,750,000 California Statewide Communities Development Authority, Special Facilities Lease Revenue
Bonds, 1997 Series A (United Air Lines, Inc.-San Francisco International Airport Projects),
5.625%, 10/01/34 (Alternative Minimum Tax) 10/07 at 102 Baa3 2,821,720
12,500,000 Foothill/Eastern Transportation Corridor Agency, Toll Road Revenue Bonds Series 1995A,
6.000%, 1/01/34 1/05 at 102 Baa 13,346,750
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 42.7%
7,690,000 California State Various Purpose General Obligation Bonds, Series 1995, 5.750%, 3/01/19
(Pre-refunded to 3/01/05) 3/05 at 101 A+*** 8,548,050
7,430,000 California Educational Facilities Authority, Revenue Bonds (University of San Francisco),
Series 1992, 6.400%, 10/01/17 (Pre-refunded to 10/01/02) 10/02 at 102 Aaa 8,309,935
3,000,000 California Educational Facilities Authority, Revenue Bonds (Santa Clara University), Series
1991, 6.250%, 2/01/16 (Pre-refunded to 2/01/02) 2/02 at 102 A1*** 3,288,600
California Educational Facilities Authority, Revenue Bonds (University of San Diego),
Series 1992:
1,965,000 6.500%, 10/01/08 (Pre-refunded to 10/01/02) 10/02 at 102 A3*** 2,199,523
5,000,000 6.500%, 10/01/22 (Pre-refunded to 10/01/02) 10/02 at 102 A3*** 5,596,750
3,680,000 California Health Facilities Financing Authority, Health Facility Revenue Bonds (Health
Dimensions, Incorporated), 1990 Series A, 7.375%, 5/01/07
(Pre-refunded to 5/01/00) 5/00 at 102 Aaa 3,976,056
8,000,000 California Pollution Control Financing Authority, Solid Waste Revenue Bonds (North County
Recycling Center), 1991 Series A Bonds, 6.750%, 7/01/17 7/02 at 102 Aaa 8,907,760
3,570,000 California Statewide Communities Development Authority (Triad Healthcare), Revenue
Refunding Series 1992, Certificates of Participation, 6.250%, 8/01/06 No Opt. Call A+*** 3,974,338
10,050,000 State Public Works Board of the State of California, Lease Revenue Bonds (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) 10/02 at 102 Aaa 11,353,485
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 8,197,386
7,625,000 7.000%, 11/01/19 (Pre-refunded to 11/01/04) 11/04 at 102 Aaa 9,045,385
2,000,000 State Public Works Board of the State of California, Lease Revenue Bonds (Department of
Corrections), 1991 Series A (State Prisons-Imperial County), 6.500%, 9/01/11
(Pre-refunded to 9/01/01) 9/01 at 102 Aaa 2,198,580
2,000,000 State of California, Department of Water Resources, Central Valley Project, Water
System Revenue Bonds, Series K, 6.400%, 12/01/26 (Pre-refunded to 6/01/02)6/02 at 101 1/2 Aaa 2,213,100
County of Alameda, Certificates of Participation (1992 Capital
Projects), Alameda County Public Facilities Corporation:
7,865,000 6.750%, 6/01/16 (Pre-refunded to 6/01/02) 6/02 at 102 A*** 8,823,979
10,000,000 6.000%, 6/01/22 (Pre-refunded to 6/01/02) 6/02 at 102 A*** 10,959,200
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
U.S. GUARANTEED (CONTINUED)
$ 2,000,000 Coachella Valley Water District, Improvement District No. 71 (Storm Water District) (Riverside,
Imperial, and San Diego Counties, California), 1992 Certificates of Participation (Flood
Control Project), 6.750%, 10/01/12 (Pre-refunded to 10/01/02) 10/02 at 102 A*** $2,257,460
3,000,000 Contra Costa Water Authority (Contra Costa County, California), Water Treatment Revenue
Bonds, 1990 Series A, 6.875%, 10/01/20 (Pre-refunded to 10/01/00) 10/00 at 102 N/R*** 3,250,440
12,805,000 County of Contra Costa, California, 1988 Home Mortgage Mortgage Revenue Bonds (GNMA
Mortgage-Backed Securities Program), 8.250%, 6/01/21
(Alternative Minimum Tax) No Opt. Call Aaa 17,981,037
10,000,000 Fontana Redevelopment Agency, Jurupa Hills Redevelopment Project Area (County of
San Bernardino, California), Refunding Tax Allocation Bonds, 1992 Series A,
7.100%, 10/01/23 (Pre-refunded to 10/01/02) 10/02 at 102 BBB+*** 11,408,800
7,000,000 Fresno Unified School District, Fresno County, California, Certificates of Participation for
Measure A Capital Projects, Series of 1991C for Project Phase VIII, 7.000%, 5/01/12
(Pre-refunded to 5/01/99) 5/99 at 102 A3*** 7,304,150
5,210,000 Fresno Unified School District, Fresno County, California, Certificates of Participation for
Measure A Capital Projects, Series of 1992B for Project Phase IX, 6.700%, 5/01/12
(Pre-refunded to 5/01/00) 5/00 at 102 A2*** 5,570,532
8,000,000 Lancaster School District, Certificates of Participation (1992 Refunding Project),
7.000%, 3/01/22 (Pre-refunded to 3/01/02) 3/02 at 105 Aaa 9,209,600
4,500,000 City of Los Angeles, California, Wastewater System Revenue Bonds, Series 1991-D,
6.700%, 12/01/21 (Pre-refunded to 12/01/00) 12/00 at 102 Aaa 4,888,800
10,000,000 County of Orange, California, Certificates of Participation (Civic Center Expansion Project),
6.700%, 8/01/18 (Pre-refunded to 8/01/01) 8/01 at 102 Aaa 11,026,500
13,525,000 County of San Bernardino, California, Single Family Mortgage Revenue Bonds (GNMA
Mortgage-Backed Securities), 1989 Series A, 7.750%, 11/01/14
(Alternative Minimum Tax) No Opt. Call Aaa 17,337,427
8,295,000 San Diego County Water Authority, Water Revenue Certificates of Participation, Series
1991A, 6.300%, 5/01/05 (Pre-refunded to 5/01/01) 5/01 at 102 AA-*** 8,999,992
3,385,000 The Community Redevelopment Agency of the City of Santa Ana, Orange County,
California, Santa Ana South Harbor Boulevard/Fairview Street Redevelopment Project,
1989 Series C Tax Allocation Refunding Bonds, 7.250%, 9/01/09
(Pre-refunded to 9/01/99) 9/99 at 102 A-*** 3,578,250
2,575,000 City of Santa Maria, Revenue Certificates of Participation (Marian Medical Center),
6.750%, 9/01/22 (Pre-refunded to 9/01/02) 9/02 at 102 N/R*** 2,901,304
4,300,000 Sierra View Local Hospital District, Insured Health Facility Revenue Bonds, Series 1992,
6.400%, 3/01/22 (Pre-refunded to 3/01/02) 3/02 at 102 A+*** 4,742,298
6,185,000 The Regents of the University of California, Refunding Revenue Bonds (Multiple Purpose
Projects), Series A, 6.875%, 9/01/16 (Pre-refunded to 9/01/02) 9/02 at 102 AA-*** 7,007,110
- ------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 7.0%
10,000,000 California Pollution Control Financing Authority, Pollution Control Revenue Bonds (Southern
California Edison Company), 1991 Series, 6.900%, 12/01/17
(Alternative Minimum Tax) 12/01 at 102 Aa3 10,933,300
5,000,000 California Pollution Control Financing Authority, Pollution Control Revenue Bonds (Pacific
Gas and Electric Company), 1992 Series A, 6.625%, 6/01/09
(Alternative Minimum Tax) 6/02 at 102 AA- 5,460,350
2,000,000 Anaheim Public Financing Authority, Revenue Bonds, Series 1998, City of Anaheim Electric
Distribution Facilities, 5.000%, 10/01/23 10/08 at 101 AAA 1,982,960
3,880,000 Department of Water and Power of the City of Los Angeles, California, Electric Plant
Revenue Bonds, Issue of 1989, 7.375%, 2/01/29 2/99 at 102 Aa3 4,016,149
6,185,000 City of Redlands, Certificates of Participation (1993 Refunding of 1986 and 1987 Projects),
6.800%, 3/01/07 3/07 at 100 Aaa 6,201,205
5,500,000 Southern California Public Power Authority, Multiple Project Revenue Bonds, 1989 Series,
6.750%, 7/01/11 No Opt. Call A 6,612,320
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
WATER AND SEWER - 3.4%
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 $3,934,384
8,400,000 4.500%, 5/15/30 5/03 at 102 Aaa 7,648,116
1,000,000 City of Norco Refunding Certificates of Participation, Series 1998, (Sewer and Water System
Improvement Project), 5.125%, 10/01/28 10/08 at 102 Aaa 1,000,850
2,000,000 City of Santa Barbara, California, Certificates of Participation (1992 Water System Improvement
Project and Refunding), 6.700%, 4/01/27 4/02 at 102 Aaa 2,194,540
2,200,000 City of Stockton, Revenue Certificates of Participation, 1998 Series A(Wastewater System
Project), 5.200%, 9/01/29 9/08 at 102 Aaa 2,236,366
- ------------------------------------------------------------------------------------------------------------------------------------
$ 448,695,000 Total Investments - (cost $445,443,965) - 98.8% 496,925,984
=============
Other Assets Less Liabilities - 1.2% 6,074,107
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $503,000,091
====================================================================================================================
* 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.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF NET ASSETS
AUGUST 31, 1998
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
VALUE PERFORMANCE PLUS OPPORTUNITY QUALITY SELECT QUALITY QUALITY INCOME
INVESTMENT
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investments in municipal securities,
at market value (note 1) $254,741,430 $288,636,729 $184,256,036 $298,932,472 $506,874,069 $496,925,984
Temporary investments in short-term
municipal securities, at amortized
cost, which approximates market
value (note 1) 1,500,000 -- 500,000 -- -- --
Cash 325,284 115,912 111,462 243,649 11,243 96,912
Receivables:
Interest 3,805,211 4,881,939 2,433,880 4,517,614 7,360,121 8,800,411
Investments sold 2,823,030 30,900 -- 1,509,916 1,674,497 1,340,867
Other assets 19,865 25,704 15,445 19,226 23,928 32,754
- ------------------------------------------------------------------------------------------------------------------------------------
Total assets 263,214,820 293,691,184 187,316,823 305,222,877 515,943,858 507,196,928
- ------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Payable for investments purchased -- -- -- 754,010 1,005,347 2,010,693
Accrued expenses:
Management fees (note 6) 127,608 158,407 101,743 163,944 274,539 269,321
Other 128,617 88,963 90,345 99,189 154,097 127,240
Preferred share dividends payable N/A 21,882 18,089 41,436 50,318 32,551
Common share dividends payable 1,046,741 1,088,698 674,024 1,056,780 1,788,875 1,757,032
- ------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 1,302,966 1,357,950 884,201 2,115,359 3,273,176 4,196,837
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets (note 7) $261,911,854 $292,333,234 $186,432,622 $303,107,518 $512,670,682 $503,000,091
====================================================================================================================================
Preferred shares, at liquidation value N/A $ 90,000,000 $ 55,000,000 $ 90,000,000 $150,000,000 $150,000,000
====================================================================================================================================
Preferred shares outstanding N/A 3,600 2,200 3,600 6,000 6,000
====================================================================================================================================
Common shares outstanding 25,222,660 12,659,284 7,976,612 13,292,830 22,643,989 21,558,675
====================================================================================================================================
Netasset value per Common share
outstanding (net assets less
Preferred shares at liquidation
value, divided by Common
shares outstanding) $ 10.38 $ 15.98 $ 16.48 $ 16.03 $ 16.02 $ 16.37
====================================================================================================================================
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, 1998
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
VALUE PERFORMANCE PLUS OPPORTUNITY QUALITY SELECT QUALITY QUALITY INCOME
INVESTMENT
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME (NOTE 1) $15,198,436 $17,859,594 $11,274,245 $18,067,029 $30,282,424 $29,323,053
- ------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees (note 6) 1,529,903 1,858,181 1,192,958 1,923,058 3,219,555 3,150,103
Preferred shares - auction fees N/A 225,001 137,499 225,001 375,001 375,001
Preferred shares - dividend
disbursing agent fees N/A 19,998 10,001 10,001 19,998 19,998
Shareholders' servicing agent
fees and expenses 56,971 32,785 20,468 30,476 43,685 35,368
Custodian's fees and expenses 54,531 56,645 44,921 56,639 77,041 76,253
Directors' fees and expenses (note 6) 2,250 2,535 1,612 2,628 4,440 4,333
Professional fees 17,181 17,882 17,572 17,908 18,503 18,444
Shareholders' reports - printing
and mailing expenses 89,183 67,582 46,752 72,924 110,723 106,854
Stock exchange listing fees 32,700 24,564 16,290 24,619 32,755 32,467
Investor relations expense 22,072 23,505 14,827 23,888 38,875 37,232
Other expenses 14,228 22,160 17,633 22,338 30,923 29,967
- ------------------------------------------------------------------------------------------------------------------------------------
Total expenses 1,819,019 2,350,838 1,520,533 2,409,480 3,971,499 3,886,020
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income 13,379,417 15,508,756 9,753,712 15,657,549 26,310,925 25,437,033
- ------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED
GAIN FROM INVESTMENTS
Net realized gain from investment
transactions (notes 1 and 4) 1,609,036 753,844 1,168,298 444,251 2,949,181 585,068
Net change in unrealized appreciation
or depreciation of investments 7,275,057 3,671,035 2,432,009 4,240,471 6,035,385 10,900,888
- ------------------------------------------------------------------------------------------------------------------------------------
Net gain from investments 8,884,093 4,424,879 3,600,307 4,684,722 8,984,566 11,485,956
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
from operations $22,263,510 $19,933,635 $13,354,019 $20,342,271 $35,295,491 $36,922,989
====================================================================================================================================
N/A - Fund is not authorized to issue Preferred Shares.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
CALIFORNIA VALUE CALIFORNIA PERFORMANCE PLUS CALIFORNIA OPPORTUNITY
- -----------------------------------------------------------------------------------------------------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
8/31/98 8/31/97 8/31/98 8/31/97 8/31/98 8/31/97
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 13,379,417 $ 14,799,222 $ 15,508,756 $ 15,907,165 $ 9,753,712 $ 9,852,143
Net realized gain from investment
transactions (notes 1 and 4) 1,609,036 871,832 753,844 295,043 1,168,298 163,232
Net change in unrealized appreciation
or depreciation of investments 7,275,057 2,662,398 3,671,035 3,027,505 2,432,009 3,417,852
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
from operations 22,263,510 18,333,452 19,933,635 19,229,713 13,354,019 13,433,227
- -----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS (NOTE 1)
From undistributed net investment income:
Common shareholders (13,405,303) (14,749,502) (13,022,043) (12,928,998) (8,069,724) (8,025,751)
Preferred shareholders N/A N/A (2,861,139) (2,803,257) (1,759,155) (1,748,730)
From accumulated net realized gains
from investment transactions:
Common shareholders (1,344,368) (2,245,205) (209,142) (236,296) (64,394) --
Preferred shareholders N/A N/A (44,442) (57,906) (13,860) --
- -----------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets from
distributions to shareholders (14,749,671) (16,994,707) (16,136,766) (16,026,457) (9,907,133) (9,774,481)
- -----------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS (NOTE 2)
Net proceeds from Common shares
issued to shareholders due to
reinvestment of distributions 229,709 881,931 1,600,110 1,628,670 706,515 758,304
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets 7,743,548 2,220,676 5,396,979 4,831,926 4,153,401 4,417,050
Net assets at beginning of year 254,168,306 251,947,630 286,936,255 282,104,329 182,279,221 177,862,171
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets at end of year $261,911,854 $254,168,306 $292,333,234 $286,936,255 $186,432,622 $182,279,221
- -----------------------------------------------------------------------------------------------------------------------------------
Balance of undistributed net
investment income at
end of year $ 147,223 $ 173,109 $ 473,645 $ 848,071 $ 289,546 $ 364,713
===================================================================================================================================
N/A - Fund is not authorized to issue Preferred Shares.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
<CAPTION>
CALIFORNIA INVESTMENT QUALITY CALIFORNIA SELECT QUALITY CALIFORNIA QUALITY INCOME
- -----------------------------------------------------------------------------------------------------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
8/31/98 8/31/97 8/31/98 8/31/97 8/31/98 8/31/97
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 15,657,549 $ 16,033,064 $ 26,310,925 $ 26,629,944 $ 25,437,033 $ 25,681,517
Net realized gain from investment
transactions (notes 1 and 4) 444,251 18,985 2,949,181 389,794 585,068 81,484
Net change in unrealized appreciation
or depreciation of investments 4,240,471 4,197,880 6,035,385 11,488,811 10,900,888 12,987,562
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
from operations 20,342,271 20,249,929 35,295,491 38,508,549 36,922,989 38,750,563
- -----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS (NOTE 1)
From undistributed net investment income:
Common shareholders (13,080,251) (13,028,724) (22,044,563) (22,122,630) (21,032,274) (20,855,446)
Preferred shareholders (2,868,562) (2,897,105) (4,721,829) (4,582,259) (4,840,296) (4,783,533)
From accumulated net realized
gains from investment transactions:
Common shareholders (62,200) -- (322,695) (1,252,537) -- --
Preferred shareholders (13,716) -- (66,525) (266,364) -- --
- -----------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets from
distributions to shareholders (16,024,729) (15,925,829) (27,155,612) (28,223,790) (25,872,570) (25,638,979)
- -----------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS (NOTE 2)
Net proceeds from Common shares
issued to shareholders due to
reinvestment of distributions 1,509,857 1,533,387 1,883,226 2,149,140 1,988,327 1,352,091
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets 5,827,399 5,857,487 10,023,105 12,433,899 13,038,746 14,463,675
Net assets at beginning of year 297,280,119 291,422,632 502,647,577 490,213,678 489,961,345 475,497,670
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets at end of year $303,107,518 $297,280,119 $512,670,682 $502,647,577 $503,000,091 $489,961,345
===================================================================================================================================
Balance of undistributed net
investment income at end of year $ 327,248 $ 618,512 $ 325,742 $ 781,209 $ 979,635 $ 1,415,172
===================================================================================================================================
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.
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 the when-issued and delayed delivery purchase commitments. At
August 31, 1998, there were no such outstanding purchase commitments in any of
the Funds.
INVESTMENT 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 monthly
tax-exempt income dividends paid during the fiscal year ended August 31, 1998,
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 carryforwards.
<PAGE>
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.
PREFERRED SHARES
The Funds 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 CALIFORNIA
PERFORMANCE CALIFORNIA INVESTMENT SELECT QUALITY
PLUS OPPORTUNITY QUALITY QUALITY INCOME
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Number of shares:
Series M -- -- 3,600 -- --
Series T 1,800 -- -- 2,400 --
Series W -- 2,200 -- -- 3,000
Series Th -- -- -- 3,600 --
Series F 1,800 -- -- -- 3,000
- ---------------------------------------------------------------------------------------------------------
Total 3,600 2,200 3,600 6,000 6,000
- ---------------------------------------------------------------------------------------------------------
</TABLE>
DERIVATIVE FINANCIAL INSTRUMENTS
The Funds may invest in transactions in certain derivative financial instruments
including futures, forward, swap, and option contracts, and other financial
instruments with similar characteristics. Although the Funds are authorized to
invest in such financial instruments, and may do in the future, they did not
make any such investments during the fiscal year ended August 31, 1998.
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. Actual results may differ
from those estimates.
2. FUND SHARES
Transactions in Common shares were as follows:
<TABLE>
<CAPTION>
CALIFORNIA VALUE CALIFORNIA PERFORMANCE PLUS
- ---------------------------------------------------------------------------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
8/31/98 8/31/97 8/31/98 8/31/97
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares issued to shareholders
due to reinvestment of distributions 22,464 83,152 91,264 99,470
=========================================================================================================
<CAPTION>
CALIFORNIA OPPORTUNITY CALIFORNIA
INVESTMENT QUALITY
- ---------------------------------------------------------------------------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
8/31/98 8/31/97 8/31/98 8/31/97
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares issued to shareholders
due to reinvestment of distributions 40,765 46,625 88,738 96,114
=========================================================================================================
<CAPTION>
CALIFORNIA CALIFORNIA
SELECT QUALITY QUALITY INCOME
- ---------------------------------------------------------------------------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
8/31/98 8/31/97 8/31/98 8/31/97
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares issued to shareholders
due to reinvestment of distributions 113,065 136,425 118,416 84,978
=========================================================================================================
</TABLE>
<PAGE>
3. DISTRIBUTIONS TO COMMON SHAREHOLDERS
The Funds declared Common share dividend distributions from their tax-exempt net
investment income which were paid October 1, 1998, to shareholders of record on
September 15, 1998, as follows:
<TABLE>
<CAPTION>
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
CALIFORNIA PERFORMANCE CALIFORNIA INVESTMENT SELECT QUALITY
VALUE PLUS OPPORTUNITY QUALITY QUALITY INCOME
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Dividend per share $.0415 $.0860 $.0845 $.0795 $.0790 $.0815
=========================================================================================================
</TABLE>
4. SECURITIES TRANSACTIONS
Purchases and sales (including maturities) of investments in municipal
securities and temporary municipal investments during the fiscal year ended
August 31, 1998, were as follows:
<TABLE>
<CAPTION>
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
CALIFORNIA PERFORMANCE CALIFORNIA INVESTMENT SELECT QUALITY
VALUE PLUS OPPORTUNITY QUALITY QUALITY INCOME
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Purchases:
Investments in
municipal securities $100,274,092 $63,892,800 $32,789,915 $64,157,843 $89,005,377 $58,403,112
Temporary municipal
investments 34,450,000 16,700,000 9,900,000 23,020,000 41,600,000 11,200,000
Sales and Maturities:
Investments in
municipal securities 101,499,794 58,810,179 32,087,050 63,742,341 84,663,608 55,373,045
Temporary municipal
investments 32,950,000 17,200,000 10,200,000 23,020,000 48,775,000 11,800,000
=========================================================================================================
</TABLE>
At August 31, 1998, the identified cost of investments owned for federal income
tax purposes was the same as the cost for financial reporting purposes for each
Fund.
5. UNREALIZED APPRECIATION (DEPRECIATION)
Gross unrealized appreciation and gross unrealized depreciation of investments
at August 31, 1998, were as follows
<TABLE>
<CAPTION>
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
CALIFORNIA PERFORMANCE CALIFORNIA INVESTMENT SELECT QUALITY
VALUE PLUS OPPORTUNITY QUALITY QUALITY INCOME
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Gross unrealized:
appreciation $23,015,723 $24,247,186 $18,838,337 $26,731,681 $43,666,892 $51,482,019
depreciation -- -- -- -- -- --
- ---------------------------------------------------------------------------------------------------------
Net unrealized appreciation $23,015,723 $24,247,186 $18,838,337 $26,731,681 $43,666,892 $51,482,019
=========================================================================================================
</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 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:
AVERAGE DAILY NET ASSET VALUE MANAGEMENT FEE
- -----------------------------------------------------------------------------
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
=============================================================================
The fee compensates the Adviser for overall investment advisory and
administrative services and general office facilities. The Funds pay no
compensation directly to those of its Directors 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, 1998, net assets consisted of:
<TABLE>
<CAPTION>
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
CALIFORNIA PERFORMANCE CALIFORNIA INVESTMENT SELECT QUALITY
VALUE PLUS OPPORTUNITY QUALITY QUALITY INCOME
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Preferred shares, $25,000
stated value per share,
at liquidation value $ N/A $ 90,000,000 $ 55,000,000 $ 90,000,000 $150,000,000 $150,000,000
Common shares, $.01 par
value per share 252,227 126,593 79,766 132,928 226,440 215,587
Paid-in surplus 237,377,899 176,746,187 111,082,282 185,523,703 315,503,967 299,844,151
Balance of undistributed net
investment income 147,223 473,645 289,546 327,248 325,742 979,635
Accumulated net realized gain
from investment
transactions 1,118,782 739,623 1,142,691 391,958 2,947,641 478,699
Net unrealized appreciation
of investments 23,015,723 24,247,186 18,838,337 26,731,681 43,666,892 51,482,019
- ---------------------------------------------------------------------------------------------------------
Net assets $261,911,854 $292,333,234 $186,432,622 $303,107,518 $512,670,682 $503,000,091
=========================================================================================================
Authorized shares:
Common 250,000,000 200,000,000 200,000,000 200,000,000 200,000,000 200,000,000
Preferred N/A 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000
=========================================================================================================
N/A - Fund is not authorized to issue Preferred Shares.
</TABLE>
<PAGE>
FINANCIAL HIGHLIGHTS
Selected data for a Common share outstanding throughout each period is
as follows:
<TABLE>
<CAPTION>
Investment Operations
Net
Realized/
Beginning Net Unrealized
Net Asset Investment Investment
Value Income Gain (Loss) Total
<S> <C> <C> <C> <C>
California Value
Year Ended 8/31:
1998 $10.09 $ .53 $ .34 $ .87
1997 10.03 .59 .15 .74
1996 10.20 .61 (.10) .51
1995 10.20 .64 .04 .68
1994 10.74 .65 (.51) .14
<CAPTION>
California Performance Plus
<S> <C> <C> <C> <C>
Year Ended 8/31:
1998 15.67 1.23 .36 1.59
1997 15.41 1.27 .26 1.53
1996 15.45 1.28 (.04) 1.24
1995 15.24 1.28 .28 1.56
1994 16.38 1.30 (1.13) .17
<CAPTION>
California Opportunity
<S> <C> <C> <C> <C>
Year Ended 8/31:
1998 16.04 1.23 .45 1.68
1997 15.57 1.25 .45 1.70
1996 15.64 1.25 (.03) 1.22
1995 15.32 1.27 .36 1.63
1994 16.59 1.27 (1.26) .01
<CAPTION>
California Investment Quality
<S> <C> <C> <C> <C>
Year Ended 8/31:
1998 15.70 1.18 .36 1.54
1997 15.37 1.22 .32 1.54
1996 15.37 1.24 -- 1.24
1995 15.20 1.25 .22 1.47
1994 16.44 1.26 (1.19) .07
<CAPTION>
California Select Quality
<S> <C> <C> <C> <C>
Year Ended 8/31:
1998 15.65 1.16 .41 1.57
1997 15.19 1.19 .52 1.71
1996 15.23 1.19 .09 1.28
1995 14.96 1.21 .35 1.56
1994 16.44 1.21 (1.43) (.22)
<CAPTION>
California Quality Income
<S> <C> <C> <C> <C>
Year Ended 8/31:
1998 15.86 1.18 .54 1.72
1997 15.24 1.20 .62 1.82
1996 15.05 1.20 .21 1.41
1995 14.68 1.21 .39 1.60
1994 15.92 1.20 (1.20) --
<PAGE>
<CAPTION>
Less Distributions
Net Net
Investment Investment Capital Capital
Income Income Gains Gains
To Common To Preferred To Common To Preferred
Shareholders Shareholders+ Shareholders Shareholders+ Total
<S> <C> <C> <C> <C> <C>
California Value
Year Ended 8/31:
1998 $ (.53) N/A $(.05) N/A $ (.58)
1997 (.59) N/A (.09) N/A (.68)
1996 (.62) N/A (.06) N/A (.68)
1995 (.67) N/A (.01) N/A (.68)
1994 (.67) N/A (.01) N/A (.68)
<CAPTION>
California Performance Plus
<S> <C> <C> <C> <C> <C>
Year Ended 8/31:
1998 (1.03) (.23) (.02) -- (1.28)
1997 (1.03) (.22) (.02) -- (1.27)
1996 (1.03) (.25) -- -- (1.28)
1995 (1.03) (.29) (.02) (.01) (1.35)
1994 (1.06) (.25) -- -- (1.31)
<CAPTION>
California Opportunity
<S> <C> <C> <C> <C> <C>
Year Ended 8/31:
1998 (1.01) (.22) (.01) -- (1.24)
1997 (1.01) (.22) -- -- (1.23)
1996 (1.02) (.23) (.03)+++ (.01)+++ (1.29)
1995 (1.05) (.26) -- -- (1.31)
1994 (1.07) (.21) -- -- (1.28)
<CAPTION>
California Investment Quality
<S> <C> <C> <C> <C> <C>
Year Ended 8/31:
1998 (.99) (.22) -- -- (1.21)
1997 (.99) (.22) -- -- (1.21)
1996 (1.02) (.22) -- -- (1.24)
1995 (1.04) (.26) -- -- (1.30)
1994 (1.12) (.17) (.02) -- (1.31)
<CAPTION>
California Select Quality
<S> <C> <C> <C> <C> <C>
Year Ended 8/31:
1998 (.97) (.21) (.02) -- (1.20)
1997 (.98) (.20) (.06) (.01) (1.25)
1996 (.98) (.21) (.10) (.03) (1.32)
1995 (.99) (.25) (.04) (.01) (1.29)
1994 (1.05) (.18) (.03) -- (1.26)
<CAPTION>
California Quality Income
<S> <C> <C> <C> <C> <C>
Year Ended 8/31:
1998 (.98) (.23) -- -- (1.21)
1997 (.98) (.22) -- -- (1.20)
1996 (.96) (.23) (.02)+++ (.01)+++ (1.22)
1995 (.96) (.27) -- -- (1.23)
1994 (1.00) (.21) (.02) (.01) (1.24)
<PAGE>
<CAPTION>
Total Returns
Ending
Net Asset Ending Based on Based on Net
Value Market Value Market Value* Asset Value*
<S> <C> <C> <C> <C>
California Value
Year Ended 8/31:
1998 $10.38 $ 9.8125 2.11% 8.90%
1997 10.09 10.1875 7.59 7.55
1996 10.03 10.1250 12.52 5.16
1995 10.20 9.6250 (6.59) 6.92
1994 10.20 11.0000 (.50) 1.32
<CAPTION>
California Performance Plus
<S> <C> <C> <C> <C>
Year Ended 8/31:
1998 15.98 18.0000 10.74 8.93
1997 15.67 17.2500 16.71 8.77
1996 15.41 15.7500 14.04 6.53
1995 15.45 14.7500 5.75 8.75
1994 15.24 15.0000 (8.34) (.48)
<CAPTION>
California Opportunity
<S> <C> <C> <C> <C>
Year Ended 8/31:
1998 16.48 17.6250 11.99 9.36
1997 16.04 16.6875 11.83 9.79
1996 15.57 15.8750 13.10 6.31
1995 15.64 15.0000 4.72 9.43
1994 15.32 15.3750 (8.20) (1.27)
<CAPTION>
California Investment Quality
<S> <C> <C> <C> <C>
Year Ended 8/31:
1998 16.03 16.8750 8.39 8.66
1997 15.70 16.5000 12.32 8.82
1996 15.37 15.6250 11.08 6.72
1995 15.37 15.0000 3.77 8.38
1994 15.20 15.5000 (2.10) (.64)
<CAPTION>
California Select Quality
<S> <C> <C> <C> <C>
Year Ended 8/31:
1998 16.02 16.7500 8.11 8.93
1997 15.65 16.4375 13.22 10.17
1996 15.19 15.5000 15.73 6.95
1995 15.23 14.3750 7.14 9.22
1994 14.96 14.4380 (7.60) (2.52)
<CAPTION>
California Quality Income
<S> <C> <C> <C> <C>
Year Ended 8/31:
1998 16.37 17.3750 13.29 9.65
1997 15.86 16.2500 15.19 10.74
1996 15.24 15.0000 12.32 7.89
1995 15.05 14.2500 9.24 9.57
1994 14.68 14.0000 (6.27) (1.41)
<PAGE>
<CAPTION>
Ratios/Supplemental Data
Ratio of Net
Ratio of Investment
Ending Expenses to Income to Portfolio
Net Assets Average Average Turnover
(000) Net Assets++ Net Assets++ Rate
<S> <C> <C> <C> <C>
California Value
Year Ended 8/31:
1998 $261,912 .71% 5.19% 40%
1997 254,168 .74 5.85 17
1996 251,948 .77 6.00 23
1995 193,426 .75 6.32 9
1994 192,237 .76 6.24 9
California Performance Plus
<S> <C> <C> <C> <C>
Year Ended 8/31:
1998 292,333 .81 5.35 20
1997 286,936 .81 5.59 12
1996 282,104 .80 5.62 14
1995 281,766 .83 5.77 24
1994 279,175 .83 5.63 19
<CAPTION>
California Opportunity
<S> <C> <C> <C> <C>
Year Ended 8/31:
1998 186,433 .82 5.28 18
1997 182,279 .82 5.46 4
1996 177,862 .82 5.47 8
1995 178,072 .83 5.73 36
1994 175,325 .87 5.51 24
<CAPTION>
California Investment Quality
<S> <C> <C> <C> <C>
Year Ended 8/31:
1998 303,108 .80 5.22 21
1997 297,280 .80 5.44 12
1996 291,423 .81 5.51 10
1995 290,426 .81 5.72 14
1994 287,504 .82 5.53 18
<CAPTION>
California Select Quality
<S> <C> <C> <C> <C>
Year Ended 8/31:
1998 512,671 .78 5.18 17
1997 502,648 .78 5.36 5
1996 490,214 .79 5.38 13
1995 489,967 .80 5.66 12
1994 483,986 .81 5.43 15
<CAPTION>
California Quality Income
<S> <C> <C> <C> <C>
Year Ended 8/31:
1998 503,000 .78 5.12 11
1997 489,961 .79 5.31 8
1996 475,498 .79 5.37 6
1995 471,064 .80 5.63 29
1994 463,200 .80 5.35 12
N/A Fund is not authorized to issue Preferred shares.
* 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
California Opportunity and $.007 for Common shareholders and $.002 for Preferred
shareholders of California Quality Income.
</TABLE>
<PAGE>
BUILDING A BETTER PORTFOLIO
CAN MAKE YOU A SUCCESSFUL INVESTOR
Nuveen Family of Mutual Funds
Nuveen offers a variety of funds designed to help you reach your financial
goals.
GROWTH
Nuveen Rittenhouse
Growth Fund
GROWTH AND
INCOME
European Value Fund
Growth and
Income Stock Fund
Balanced Stock
and Bond Fund
Balanced Municipal
and Stock Fund
TAX-FREE INCOME
National Funds
Long-Term
Insured
Intermediate-Term
Limited-Term
State Funds
Arizona
California
Colorado
Connecticut
Florida
Georgia
Kansas
Kentucky
Louisiana
Maryland
Massachusetts
Michigan
Missouri
New Jersey
New Mexico
New York
North Carolina
Ohio
Pennsylvania
Tennessee
Virginia
Wisconsin
Successful investors know that a well-diversified portfolio - one that balances
different types of investments, levels of risk and tax management - can be the
foundation for building and sustaining wealth. That's why Nuveen offers you and
your financial adviser a wide range of quality investments that can help you
build a better portfolio in the pursuit of your financial goals
EXCHANGE-TRADED FUNDS
Nuveen Exchange-Traded Funds offer investors actively managed portfolios of
investment-grade quality municipal bonds. The fund shares are listed and traded
on the New York and American stock exchanges. Exchange-traded funds provide the
investment convenience, price visibility and liquidity of common stocks.
MUNIPREFERRED(R)
Nuveen MuniPreferred offers investors a AAA rated investment with an attractive
tax-free yield for the cash reserves portion of an investment portfolio.
MuniPreferred shares are backed 2-to-1 by the long-term portfolios of Nuveen
dual-class exchange-traded funds and are available for national as well as a
wide variety of state-specific portfolios.
MUTUAL FUNDS
Nuveen offers a family of equity, balanced and municipal bond funds featuring
Premier AdvisersSM including Institutional Capital Corporation, Rittenhouse
Financial Services, and Nuveen Advisory Corp. Each brings a specialized
expertise in a particular investment style or asset class, time-tested
investment strategies and a focus on consistent, long-term performance. With
Nuveen's Premier Adviser funds, you have all the advantages of a family of funds
plus the benefits of specialized investment expertise.
PRIVATE ASSET MANAGEMENT
Rittenhouse Financial Services and Nuveen Asset Management offer comprehensive,
customized investment management solutions to investors with assets of $250,000
or more to invest. A range of actively managed growth, balanced and municipal
income-oriented portfolios are available, all based upon a disciplined
investment philosophy.
DEFINED PORTFOLIOS
Nuveen Defined Portfolios are fixed portfolios of quality securities that are a
convenient, attractive alternative to purchasing individual securities. They
provide low-cost diversification to reduce risk, while also offering
experienced, professional security selection and surveillance. In addition,
Nuveen Defined Portfolios provide daily liquidity at that day's net asset value
for quick access to your assets.
<PAGE>
FUND INFORMATION
BOARD OF DIRECTORS
Robert P. Bremner
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, TRANSFER AGENT
AND SHAREHOLDER SERVICES
The Chase Manhattan Bank
4 New York Plaza
New York, NY 10004-2413
(800) 257-8787
LEGAL COUNSEL
Morgan, Lewis &
Bockius LLP
Washington, D.C.
INDEPENDENT AUDITORS
Ernst & Young LLP
Chicago, IL
YEAR 2000
The concern that computer systems may have problems processing date-related
information in the year 2000 and beyond has challenged businesses and
organizations to thoroughly review all aspects of their operations. We have
undertaken just such an approach at Nuveen in preparation for the millennium.
Over the last 10 years, our trading, fund management and pricing systems at
Nuveen - the systems that directly affect our investors and their financial
advisers - have been updated or replaced to address the Year 2000 concerns.
We continue to work closely with our transfer agent, custodian and other service
partners to monitor readiness and address other remaining systems issues. Our
initial testing indicates we are on schedule, and we have targeted year-end 1998
to complete verification of vendor compliance and service partner readiness.
However, we can give no complete assurance at this time that the steps we have
taken will be sufficient to prevent any problems that would impact the Nuveen
Exchange-Traded Funds.
Each fund intends to repurchase shares of its own common or preferred stock in
the future at such times and in such amounts as is deemed advisable. No shares
were repurchased during the 12-month period ended August 31, 1998. Any future
repurchases will be reported to shareholders in the next annual or semiannual
report.
<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
quality investments designed for individuals seeking to build and sustain
wealth. In fact, more than 1.3 million investors have trusted Nuveen to help
them pursue their financial goals.
The cornerstone of Nuveen's investment philosophy is a commitment to disciplined
long-term investment strategies focused on providing consistent, attractive
performance over time - with moderated risk. We emphasize quality securities
carefully chosen through in-depth research, and we follow those securities
closely over time to ensure that they continue to meet our exacting standards.
Whether your focus is long-term growth, dependable current income or sustaining
accumulated wealth, Nuveen offers a wide variety of investments and services to
help meet your unique circumstances and financial planning needs. Our equity,
balanced, and tax-free income funds, along with our defined portfolios and
private asset management, can help you build a better, well-diversified
portfolio.
Talk with your financial adviser to learn more about how Nuveen investment
products and services can help you. Or call us at (800) 257-8787 for more
information, including a prospectus where applicable. Please read that
information carefully before investing.
GRAPHIC:
NUVEEN 1898-1998
OUR SECOND CENTURY
helping investors sustain the wealth of a lifetime.(tm)
John Nuveen & Co. Incorporated
333 West Wacker Drive
Chicago, IL 60606-1286
www.nuveen.com
FAN-1-8-98
