NUVEEN Exchange-Traded Funds
February 28, 1999
Semiannual 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 February 28, 1999
Nuveen California Municipal Value Fund, Inc. (NCA)
1) Taxable-equivalent yield of 7.97% *
2) Outperformed Lipper Peer Group total
return for one-year period **
3) graphic of: 5 stars
Five-star Morningstar Rating TM ***
Pie Chart:
AA/U.S. Guaranteed 70%
AA 6%
A 7%
BBB/NR 17%
Nuveen California Performance Plus Municipal Fund, Inc. (NCP)
1) Taxable-equivalent yield of 9.20% *
2) Outperformed Lehman Brothers California
Municipal Bond Index and Lipper Peer
Group total returns for
one-year period **
3) graphic of: 5 stars
Five-star Morningstar Rating TM ***
Pie Chart:
AA/U.S. Guaranteed 58%
AA 10%
A 12%
BBB/NR 20%
Nuveen California Municipal Market Opportunity Fund, Inc. (NCO)
1) Taxable-equivalent yield of 9.23% *
2) Stable tax-free dividend for 37
consecutive months
3) graphic of: 4 stars
Four-star Morningstar Rating TM ***
Pie Chart:
AA/U.S. Guaranteed 64%
AA 5%
A 6%
BBB/NR 25%
Nuveen California Investment Quality Municipal Fund, Inc. (NQC)
1) Taxable-equivalent yield of 9.01% *
2) Outperformed Lehman Brothers California
Municipal Bond Index and Lipper Peer Group
total returns for one-year period **
3) graphic of: five stars
Five-star Morningstar Rating TM ***
Pie Chart:
AA/U.S. Guaranteed 65%
AA 6%
A 14%
BBB/NR 15%
Nuveen California Select Quality Municipal Fund, Inc. (NVC)
1) Taxable-equivalent yield of 9.09% *
2) Outperformed Lehman Brothers California
Municipal Bond Index and Lipper Peer Group
total returns for one-year period **
3) graphic of: four stars
Four-star Morningstar Rating TM ***
Pie Chart:
AA/U.S. Guaranteed 62%
AA 19%
A 12%
BBB/NR 7%
Nuveen California Quality Income Municipal Fund, Inc. (NUC)
1) Taxable-equivalent yield of 9.04% *
2) Outperformed Lehman Brothers California
Municipal Bond Index and Lipper Peer Group
total returns for one-year period **
3) graphic of: five stars
Five-star Morningstar Rating TM ***
Pie Chart:
AA/U.S. Guaranteed 66%
AA 12%
A 12%
BBB/NR 10%
* For investors in the combined 37.5% federal and state income tax bracket.
** The Lehman Brothers California Municipal Bond Index is an unleveraged index
comprising a broad range of investment-grade municipal bonds and does not
reflect any initial or ongoing expenses. The Lipper Peer Group return
represents the average annualized returns of the 17 funds in the Lipper
California Non-Leveraged or Leveraged Municipal Debt category. The return
assumes reinvestment of dividends and does not reflect any applicable sales
charge.
*** Overall rating within the municipal bond category for the period ended
February 28, 1999. 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. NCA received five, five, and four stars for each of
the 3-, 5-, and 10-year periods. NCP, NQC, and NUC earned four stars for
the 3-year period and five stars for the 5-year period. NCO received four
stars for the three-year and five-year periods, respectively. NVC received
five and four stars for the three-year and five-year periods, respectively.
The top 10% of the funds in an investment class receive 5 stars and 22.5%
receive 4 stars. The funds were rated among 193 funds for the three-year
period, 191 for the five-year period, and 23 funds for the 10-year periods
respectively.
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 Shareholder Meeting Report
14 Portfolio of Investments
40 Statement of Net Assets
41 Statement of Operations
42 Statement of Changes in Net Assets
44 Notes to Financial Statements
49 Financial Highlights
52 Building a Better Portfolio
53 Fund Information
<PAGE>
Photo of:
Timothy R. Schwertfeger
Chairman of the Board
sidebar
Wealth takes a lifetime to build. Once achieved, it should be preserved.
Dear Shareholder
I'm pleased to announce that over the past 12 months, the Nuveen Exchange-Traded
Funds covered in this report have continued to meet their primary objectives of
providing you with attractive levels of tax-free income and after-tax total
returns. The combination of these two factors demonstrates once again that
Nuveen's municipal bond funds can serve as excellent investment options for
income oriented investors.
The Year in Review
The past 12 months were marked by periods of market volatility both at home and
abroad, as the financial crisis that began in Asia spread to emerging markets
and impacted economies around the globe. Investors responded to market
uncertainties by seeking a haven in more conservative investments, such as
municipal bond funds. Finally, to avert a potential domestic credit crunch and
bring some stability to global markets, the Federal Reserve stepped in and eased
short-term interest rates for the first time in almost three years. Between the
end of September and mid-November 1998, three successive rate cuts brought the
federal funds rate to 4.75%.
As interest rates declined, the competitive yields offered by our
exchange-traded municipal bond funds attracted investor interest and demand.
These funds continued to represent bright spots among fixed-income investments,
offering attractive income in a market that places a high premium on yield. In
addition, the funds have generally maintained good levels of call protection,
resulting in relatively stable income streams for shareholders.
Throughout 1998, the U.S. economy exhibited more strength than had been
expected. Current conditions indicate that this momentum could continue. One of
the chief factors in achieving today's peaceful coexistence of economic growth
and low inflation has been improved productivity. In the months ahead, we will
continue to watch this and other factors that affect the economy's future,
including corporate earnings reports, wage and employment statistics, the
strength of the U.S. dollar, events in international markets, and any further
interest rate indications from the Federal Reserve. We believe these key
components will influence the outlook for fixed-income markets well into the
next century.
Municipal Bonds: A Compelling Value
During the past year, rising bond prices, spurred in part by demand from
international and conservative investors, drove yields on 30-year Treasuries to
historic lows, even below 5% at times. Over this period, the yield on the Bond
Buyer Revenue Bond Index, an unmanaged index of long-term municipal revenue
bonds, fell seven basis points - from 5.36% to 5.29% - versus the 34-point drop
in Treasury yields. At the end of February 1999, the ratio of long-term
municipal yields measured against 30-year Treasury yields stood at 95%, compared
with the more typical range of 86-87%. Over the past eight months, this ratio
reached as high as 104%. For investors, this meant that quality long-term
municipal bonds offered almost the same yield as Treasury bonds with comparable
maturities - even before the tax advantages of municipal bonds were taken into
account. On an after-tax basis, municipal bonds presented an exceptionally
attractive investment option relative to Treasuries.
In the municipal market, low interest rates and the strong economy combined to
generate high levels of new issuance and a dramatic increase in the refinancing
of existing bonds. Municipal issuance in 1998 reached $284 billion, up 29% over
1997. In terms of total municipal issuance, 1998 ranked as the second largest
year on record, next to 1993's $292 billion. Year to date, municipal bonds have
continued to outperform Treasuries on a yield basis in 1999. There are two
reasons for this. For starters, municipal supply declined 30% in the first
quarter of 1999 when compared to the first quarter of 1998, which made the bonds
that were brought to market very attractive. The second factor involved a
drop-off in demand for Treasuries by foreign investors. As the global economic
turmoil subsided during the first quarter of 1999, so did the interest in the
U.S. Treasury market.
The continued strength of the U.S. economy also produced improvements in the
fundamental health of many municipalities and boosted the overall credit quality
of municipal bonds. In 1998, issues upgraded by Moody's outnumbered downgrades
by a margin of 4 to 1, while the comparable ratio at Standard & Poor's was more
than 2 to 1.
Nuveen Expertise is Key
The solid track record of a proven investment manager is one key to taking
advantage of the exceptional values currently available in the municipal market.
The near-record level of municipal issuance in 1998, for example, highlighted
the value of Nuveen's in-depth knowledge of the municipal market, as our
portfolio management teams carefully analyzed the flood of issues to select
those securities best suited to help the funds achieve their investment
objectives.
As a further enhancement to our management capabilities, Nuveen has assembled a
strong group of investment managers - experts in their particular areas of the
market - to provide investors with the advantage of their experience and
insights. In addition to Nuveen Advisory Services for tax-free investing, you
and your adviser can rely on Institutional Capital Corporation for
value-oriented equity investing and Rittenhouse Financial Services, Inc. for
growth-oriented equity investing. For more information on these funds, contact
your financial adviser for a prospectus, or call Nuveen at (800) 621-7227.
Please read the prospectus carefully before you invest or send money.
We encourage you to talk with your financial adviser about Nuveen's expanding
array of investments and the ways they can help you establish a diversified
portfolio designed to build and sustain long-term financial security. We are
grateful for the confidence you have placed in us, and we intend to continue
earning your trust in the years ahead.
Sincerely,
/s/ Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
April 15, 1999
sidebar
"Year to date, municipal bonds have continued to outperform Treasuries on a
yield basis in 1999."
<PAGE>
Nuveen California Exchange-Traded Funds
Portfolio Manager's Comments
Portfolio manager Bill Fitzgerald reviews the California municipal market, fund
performance, and key investment strategies for the Nuveen California
Exchange-Traded Funds. Bill, who has more than 10 years of experience as an
investment professional at Nuveen, began his portfolio management
responsibilities for the California funds with NCP and NCO in 1991, adding NQC
in 1992 and NUC in 1993. In July 1998, as part of Nuveen's efforts to maximize
the efficient use of staff resources and portfolio manager expertise, Bill
assumed management responsibility for NCA and NVC, the remaining two funds in
this report.
What economic factors have affected the municipal market in California?
Over the past 12 months, the California economy as a whole continued to expand,
although economic conditions in southern California bolstered by growth in the
service sector, motion picture industry, and construction, both residential and
commercial - are currently stronger than those in the northern half of the
state. This disparity is due in part to the impact of the Asian financial crisis
on the high-technology sector, particularly in Silicon Valley. Job growth in the
state has also continued to expand, but at a more moderate pace than in the
previous year. Fewer new jobs resulted in a statewide unemployment rate of 5.8%,
compared with the national average of 4.5%.
In 1998, California, which derives most of its revenue from sales and personal
income taxes, saw sales tax revenues rise 5%. This increase is expected to rise
at the same percentage increment (5%) for the next few years. At the same time,
growth in personal income, driven by gains in the real estate and equity
markets, produced tax revenues that far exceeded budget expectations, as income
from capital gains taxes more than doubled. With increased state revenues,
California is now working to position itself strategically in order to reduce
the potential impact of any future economic downturn, such as the statewide
recession of 1990-94. The state's improving economy is reflected in its ratings
of Aa3 from Moody's, A+ from Standard & Poor's, and AA- from Fitch.
The issuance of municipal bonds in California increased substantially in 1998,
up 22% over 1997, compared with the national average of 29%. The new supply was
fairly diverse across issuer sectors, with some heavier emphasis on the state's
continuing need for infrastructure financing and educational improvements. With
a few exceptions, insured bonds made up the predominant share of the new
issuance. The strong increase in supply was met with exceptionally high demand,
especially from individual investors who looked to tax-free municipal bonds for
relief from California's high taxes.
How did the California funds perform over the past year?
For the 12 months ended February 28, 1999, the Nuveen California Exchange-Traded
Funds produced total returns on net asset value (NAV) ranging from 5.95% to
7.40%, as shown in the table below. For comparison purposes, the total return on
the Lehman Brothers California Municipal Bond Index and the averages for the
Lipper California Municipal Debt category are also provided. In recognition of
their strong risk-adjusted performance, all of the funds covered in this report
received an overall Morningstar rating of either four or five stars, as of
February 28, 1999.
Lehman Lipper
California California Morningstar
Total Return on NAV Total Return(1) Average(2) Rating
- ------------------------------------------------------------------------------
1 Year Ended Taxable- 1 Year Ended 1 Year Ended
2/28/99 Equivalent3 2/28/99 2/28/99
- ------------------------------------------------------------------------------
NCA 5.95% 9.00% 6.49% 5.39% 5
- ------------------------------------------------------------------------------
NCP 6.51% 10.47% 6.49% 6.43% 5
- ------------------------------------------------------------------------------
NCO 5.96% 9.78% 6.49% 6.43% 4
- ------------------------------------------------------------------------------
NQC 6.49% 10.24% 6.49% 6.43% 5
- ------------------------------------------------------------------------------
NVC 6.53% 10.23% 6.49% 6.43% 4
- ------------------------------------------------------------------------------
NUC 7.40% 11.13% 6.49% 6.43% 5
- ------------------------------------------------------------------------------
For additional information, see the individual Performance Overview for your
fund in this report.
In the low interest rate environment of the past six months, good call
protection helped support the dividends of NCO and NUC and shield the income of
these funds from erosion. As of February 28, 1999, NCO had provided shareholders
with 37 consecutive months of steady income, while NUC had produced steady or
increasing dividends since its inception in November 1991. During the past year,
declining interest rates led to an increase in the number of bond calls, as
issuers sought to reduce debt financing costs. Lower interest rates also meant
that proceeds from any prepaid or matured bonds had to be reinvested in issues
paying relatively lower rates. Both of these situations contributed to
reductions in the income levels of NCA, NCP, NQC, and NVC and necessitated
dividend cuts in these four funds during 1998. Despite these dividend
adjustments, all of the funds have continued to provide attractive market
yields.
<PAGE>
<TABLE>
<CAPTION>
Total Return
Market Yield Premium/Discount(4) on Share Price
- ---------------------------------------------------------------------------------------------------
Taxable- 1 Year Ended Taxable-
2/28/99 Equivalent3 2/28/98 2/28/99 2/28/99 Equivalent(3)
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NCA 4.98% 7.97% -1.51% -3.10% 4.35% 7.44%
- ---------------------------------------------------------------------------------------------------
NCP 5.75% 9.20% 11.10% 9.16% 3.88% 7.44%
- ---------------------------------------------------------------------------------------------------
NCO 5.77% 9.23% 5.05% 8.14% 8.55% 12.17%
- ---------------------------------------------------------------------------------------------------
NQC 5.63% 9.01% 6.58% 6.12% 5.56% 9.07%
- ---------------------------------------------------------------------------------------------------
NVC 5.68% 9.09% 5.67% 5.22% 5.71% 9.21%
- ---------------------------------------------------------------------------------------------------
NUC 5.65% 9.04% 6.36% 6.02% 6.70% 10.21%
- ---------------------------------------------------------------------------------------------------
For additional information, see the individual Performance Overview for your
fund in this report.
</TABLE>
What key strategies were used to manage the California funds during the past
year?
The focus of our management strategies for the Nuveen California Exchange-Traded
Funds continued to be on supporting the highest level of tax-exempt dividends
consistent with capital preservation. Enhancing the funds' after-tax total
returns was also a priority. One of our more significant purchases for some of
these funds involved BBB rated bonds issued by the California Statewide
Communities Development Authority for the Irvine Apartment Communities, a
planned community that provides affordable housing built with tax-exempt
financing backed by a successful real estate company. These bonds, which offered
a yield 75 basis points higher than the market average, showcase the types of
purchases we made to support the funds' dividends. The purchase of these bonds
also enables us to participate in the opportunities we anticipate over the next
few years in the multi-family housing sector. As California property values
continue to improve, we expect that the quality ratings on these bonds should
also improve, resulting in price appreciation. We continue to add to our
holdings in paper secured by both residential and commercial properties.
Another interesting investment involved the utilities sector, where bonds were
being issued for electricity generation and transmission projects undertaken by
private contractors in California. These projects, which will provide
competition for those administered by public power authorities, participate in
resource recovery and recycling programs. These programs qualify the contractors
for municipal financing. Overall, the credit quality of the California funds
remains high, with the portion of the funds invested in bonds rated AAA and AA
ranging between 68% and 81%.
Regarding call protection, NCA, which was brought to market in 1987 as the first
of the Nuveen California Exchange-Traded Funds, continued to undergo the normal
part of the market cycle in which bond calls are likely to occur. This phase
will continue until the year 2000, after which the fund will again offer good
levels of call protection. NCP, NCO, and NQC will begin to face a significant
number of bond calls between 2000 and 2002, while NVC and NUC are protected
until 2002. To minimize the impact of bond calls, we are already at work on
strategies for managing through this period, including plans that call for the
sale of undervalued bonds approximately six to eight months before their
scheduled call dates and the reinvestment of proceeds into bonds that enhance
the funds' structure.
What is Nuveen's outlook for the future?
Looking ahead for the Nuveen California Exchange-Traded Funds, our focus will
remain on supporting the income streams of these funds and on purchasing bonds
that enhance the portfolio structure at attractive prices. As opportunities
arise over the next 12 months, we plan to sell selected AAA rated and escrowed
(U.S. guaranteed) bonds in order to purchase BBB rated issues that will enhance
the funds' yields. We will also look at positioning the funds' durations,
particularly that of NCO, so that they are better protected against any interest
rate volatility. Making the portfolio decisions that help the funds meet these
goals is an area 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 our shareholders.
The market environment of the past 12 months - influenced by low interest rates,
benign inflation, strong municipal supply, and the excellent
municipal-to-Treasury ratio (with municipal yields comparable to Treasury yields
even before the tax advantage of municipals is taken into account) - has helped
to position municipal bonds as one of the most compelling values in today's
marketplace. Continued volatility in the equity markets and investors'
increasing awareness of the need for asset allocation rebalancing should result
in growing demand for municipal bond funds. We believe that 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.
1. The Lehman Brothers California Municipal Bond Index is an unleveraged index
comprising a broad range of California investment-grade municipal bonds;
results for the index do not reflect any initial or ongoing expenses.
2. The Lipper California Peer Group returns represent the average annualized
returns of the funds in the Lipper California Municipal Debt category. NCA,
an unleveraged fund, is compared with other unleveraged California funds in
the Lipper data base, while the remaining Nuveen California funds are
compared with a leveraged peer group. Returns assume reinvestment of
dividends and do not reflect any applicable sales charges.
3. Based on the 37.5% combined federal and state income tax rate.
4. A fund's premium or discount represents the percentage difference between
the fund's share price and its NAV.
<PAGE>
Nuveen California Municipal Value Fund, Inc.
Performance Overview
As of February 28, 1999
NCA
==================================================
Portfolio Statistics
==================================================
Inception Date 10/87
- --------------------------------------------------
Share Price $10
- --------------------------------------------------
Net Asset Value $10.32
- --------------------------------------------------
Market Yield Per Share 4.98%
- --------------------------------------------------
Taxable-Equivalent Yield
(Federal Only)(1) 7.22%
- --------------------------------------------------
Taxable-Equivalent Yield
(Federal and State)(1) 7.97%
- --------------------------------------------------
Fund Net Assets ($000) $260,321
- --------------------------------------------------
Average Weighted Maturity (Years) 19.61
- --------------------------------------------------
Modified Duration (Years) 7.53
==================================================
Annualized Total Return
- --------------------------------------------------
On Share Price On NAV
- --------------------------------------------------
1-Year 4.35% 5.95%
- --------------------------------------------------
5-Year 3.84% 6.06%
- --------------------------------------------------
10-Year 6.69% 7.23%
==================================================
Taxable-Equivalent Total Return(2)
- --------------------------------------------------
On Share Price On NAV
- --------------------------------------------------
1-Year 7.44% 9.00%
- --------------------------------------------------
5-Year 7.40% 9.66%
- --------------------------------------------------
10-Year 10.40% 11.05%
==================================================
Top Five Sectors (as a % of total investments)
- --------------------------------------------------
Tax Obligation/Limited 34%
- --------------------------------------------------
U.S. Guaranteed 18%
- --------------------------------------------------
Housing/Single Family 11%
- --------------------------------------------------
Water and Sewer 8%
- --------------------------------------------------
Healthcare 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 37.5%.
2 Taxable-equivalent total return is based on the annualized total return and
a combined federal and state income tax rate of 37.5%. It represents the
return on a taxable investment necessary to equal the return of the Nuveen
fund on an after-tax basis.
3 The Fund also paid shareholders capital gains distributions in December of
$0.0486 per share.
Bar Chart:
1998-1999 Monthly Tax-Free Dividends Per Share(3)
3/98 0.0445
4/98 0.0445
5/98 0.0445
6/98 0.0445
7/98 0.0415
8/98 0.0415
9/98 0.0415
10/98 0.0415
11/98 0.0415
12/98 0.0415
1/99 0.0415
2/99 0.0415
Share Price Performance
3/6/98 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
9.813
9.875
9.75
9.875
9.938
10.313
9.875
10.125
10.13
10.38
10.25
10.06
10.13
10.5
10.31
10.25
10.25
9.88
9.81
9.69
9.63
10
9.88
10.06
2/28/99 10
Weekly Closing Price
Past performance is not predictive of future results.
<PAGE>
Nuveen California Performance Plus Municipal Fund, Inc.
Performance Overview
As of February 28, 1999
NCP
==================================================
Portfolio Statistics
- --------------------------------------------------
Inception Date 11/89
- --------------------------------------------------
Share Price $17 5/16
- --------------------------------------------------
Net Asset Value $15.86
- --------------------------------------------------
Current Market Yield Per Share 5.75%
- --------------------------------------------------
Taxable-Equivalent Yield
(Federal Only)(1) 8.33%
- --------------------------------------------------
Taxable-Equivalent Yield
(Federal and State)(1) 9.20%
- --------------------------------------------------
Fund Net Assets ($000) $291,490
- --------------------------------------------------
Average Weighted Maturity (Years) 16.16
- --------------------------------------------------
Leverage-Adjusted Duration (Years) 7.54
==================================================
Annualized Total Return
- --------------------------------------------------
On Share Price On NAV
- --------------------------------------------------
1-Year 3.88% 6.51%
- --------------------------------------------------
5-Year 8.58% 6.73%
- --------------------------------------------------
Since Inception 8.37% 8.36%
==================================================
Taxable-Equivalent Total Return(2)
- --------------------------------------------------
On Share Price On NAV
- --------------------------------------------------
1-Year 7.44% 10.47%
- --------------------------------------------------
5-Year 12.57% 10.80%
- --------------------------------------------------
Since Inception 12.39% 12.49%
==================================================
Top Five Sectors (as of % of total investments)
- --------------------------------------------------
U.S. Guaranteed 33%
- --------------------------------------------------
Tax Obligation/Limited 24%
- --------------------------------------------------
Utilities 12%
- --------------------------------------------------
Water and Sewer 9%
- --------------------------------------------------
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 37.5%.
2 Taxable-equivalent total return is based on the annualized total return and
a combined federal and state income tax rate of 37.5%. It represents the
return on a taxable investment necessary to equal the return of the Nuveen
fund on an after-tax basis.
3 The Fund also paid shareholders capital gains distributions in December of
$0.0477 per share.
Bar Chart:
1998-1999 Monthly Tax-Free Dividends Per Share(3)
3/98 0.086
4/98 0.086
5/98 0.086
6/98 0.086
7/98 0.086
8/98 0.086
9/98 0.086
10/98 0.086
11/98 0.083
12/98 0.083
1/99 0.083
2/99 0.083
Line Chart:
Share Price Performance
3/6/98 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
18.063
17.688
17.938
18.125
18.188
18.25
18.438
18.688
18.38
18.38
18.38
18.38
18.31
18.63
18.5
18.56
18.63
18.19
17.69
17.31
17.19
17.56
17.31
17.44
2/28/99 17.31
Weekly Closing Price
Past performance is not predictive of future results.
<PAGE>
Nuveen California Municipal Market Opportunity Fund, Inc.
Performance Overview
As of February 28, 1999
NCO
==================================================
Portfolio Statistics
- --------------------------------------------------
Inception Date 5/90
- --------------------------------------------------
Share Price $17 9/16
- --------------------------------------------------
Net Asset Value Per Share $16.24
- --------------------------------------------------
Current Market Yield 5.77%
- --------------------------------------------------
Taxable-Equivalent Yield
(Federal Only)(1) 8.36%
- --------------------------------------------------
Taxable-Equivalent Yield
(Federal and State)(1) 9.23%
- --------------------------------------------------
Fund Net Assets ($000) $184,998
- --------------------------------------------------
Average Weighted Maturity (Years) 15.67
- --------------------------------------------------
Leverage-Adjusted Duration (Years) 9.21
==================================================
Annualized Total Return
- --------------------------------------------------
On Share Price On NAV
- --------------------------------------------------
1-Year 8.55% 5.96%
- --------------------------------------------------
5-Year 8.57% 6.92%
- --------------------------------------------------
Since Inception 8.60% 8.65%
==================================================
Taxable-Equivalent Total Return(2)
- --------------------------------------------------
On Share Price On NAV
- --------------------------------------------------
1-Year 12.17% 9.78%
- --------------------------------------------------
5-Year 12.53% 10.90%
- --------------------------------------------------
Since Inception 12.58% 12.72%
==================================================
Top Five Sectors (as of % of total investments
- --------------------------------------------------
U.S. Guaranteed 33%
- --------------------------------------------------
Tax Obligation/Limited 22%
- --------------------------------------------------
Healthcare 13%
- --------------------------------------------------
Utilities 9%
- --------------------------------------------------
Water and Sewer 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 37.5%.
2 Taxable-equivalent total return is based on the annualized total return and
a combined federal and state income tax rate of 37.5%. It represents the
return on a taxable investment necessary to equal the return of the Nuveen
fund on an after-tax basis.
3 The Fund also paid shareholders capital gains distributions in December of
$0.1176 per share.
Bar Chart:
1998-1999 Monthly Tax-Free Dividends Per Share(3)
3/98 0.0845
4/98 0.0845
5/98 0.0845
6/98 0.0845
7/98 0.0845
8/98 0.0845
9/98 0.0845
10/98 0.0845
11/98 0.0845
12/98 0.0845
1/99 0.0845
2/99 0.0845
Line Chart:
Share Price Performance
3/6/98 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
17.625
17.5
17.625
17.563
18
18.313
18.438
18.5
17.94
18
18.13
17.88
17.75
18.13
18.25
17.63
17.75
17.88
17.63
17.38
17.44
17.69
17.44
17.63
2/28/99 17.56
Weekly Closing Price
Past performance is not predictive of future results.
<PAGE>
Nuveen California Investment Quality Municipal Fund, Inc.
Performance Overview
As of February 28, 1999
NQC
==================================================
Portfolio Statistics
- --------------------------------------------------
Inception Date 11/90
- --------------------------------------------------
Share Price $16 15/16
- --------------------------------------------------
Net Asset Value $15.96
- --------------------------------------------------
Current Market Yield Per Share 5.63%
- --------------------------------------------------
Taxable-Equivalent Yield
(Federal Only)(1) 8.16%
- --------------------------------------------------
Taxable-Equivalent Yield
(Federal and State)(1) 9.01%
- --------------------------------------------------
Fund Net Assets ($000) $302,896
- --------------------------------------------------
Average Weighted Maturity (Years) 15.38
- --------------------------------------------------
Leverage-Adjusted Duration (Years) 7.13
==================================================
Annualized Total Return
- --------------------------------------------------
On Share Price On NAV
- --------------------------------------------------
1-Year 5.56% 6.49%
- --------------------------------------------------
5-Year 8.64% 6.71%
- --------------------------------------------------
Since Inception 8.17% 8.47%
==================================================
Taxable-Equivalent Total Return(2)
- --------------------------------------------------
On Share Price On NAV
- --------------------------------------------------
1-Year 9.07% 10.24%
- --------------------------------------------------
5-Year 12.56% 10.69%
- --------------------------------------------------
Since Inception 12.15% 12.53%
- --------------------------------------------------
==================================================
Top Five Sectors (as a % of total investments)
- --------------------------------------------------
U.S. Guaranteed 36%
- --------------------------------------------------
Tax Obligation/Limited 21%
- --------------------------------------------------
Healthcare 13%
- --------------------------------------------------
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 37.5%.
2 Taxable-equivalent total return is based on the annualized total return and
a combined federal and state income tax rate of 37.5%. It represents the
return on a taxable investment necessary to equal the return of the Nuveen
fund on an after-tax basis.
3 The Fund also paid shareholders capital gains distributions in December of
$0.0288 per share.
Bar Chart:
1998-1999 Monthly Tax-Free Dividends Per Share(3)
3/98 0.0825
4/98 0.0825
5/98 0.0825
6/98 0.0825
7/98 0.0825
8/98 0.0795
9/98 0.0795
10/98 0.0795
11/98 0.0795
12/98 0.0795
1/99 0.0795
2/99 0.0795
Line Chart:
Share Price Performance
3/6/98 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
17
17
17.125
17.25
17.438
17.75
17.625
17.625
17.63
17.69
17.75
17.75
17.44
17.88
17.75
17.69
17.81
17.63
17.06
16.63
16.56
16.81
16.75
16.81
2/28/99 16.94
Weekly Closing Price
Past performance is not predictive of future results.
<PAGE>
Nuveen California Select Quality Municipal Fund, Inc.
Performance Overview
As of February 28, 1999
NVC
==================================================
Portfolio Statistics
- --------------------------------------------------
Inception Date 5/91
- --------------------------------------------------
Share Price $16 11/16
- --------------------------------------------------
Net Asset Value Per Share $15.86
- --------------------------------------------------
Current Market Yield 5.68%
- --------------------------------------------------
Taxable-Equivalent Yield
(Federal Only)(1) 8.23%
- --------------------------------------------------
Taxable-Equivalent Yield
(Federal and State)(1) 9.09%
- --------------------------------------------------
Fund Net Assets ($000) $510,251
- --------------------------------------------------
Average Weighted Maturity (Years) 16.19
- --------------------------------------------------
Leverage-Adjusted Duration (Years) 7.65
==================================================
Annualized Total Return
- --------------------------------------------------
On Share Price On NAV
- --------------------------------------------------
1-Year 5.71% 6.53%
- --------------------------------------------------
5-Year 8.92% 6.96%
- --------------------------------------------------
Since Inception 8.29% 8.56%
==================================================
Taxable-Equivalent Total Return(2)
- --------------------------------------------------
On Share Price On NAV
- --------------------------------------------------
1-Year 9.21% 10.23%
- --------------------------------------------------
5-Year 12.87% 10.88%
- --------------------------------------------------
Since Inception 12.22% 12.50%
==================================================
Top Five Sectors (as a % of total investments)
- --------------------------------------------------
U.S. Guaranteed 34%
- --------------------------------------------------
Tax Obligation/Limited 16%
- --------------------------------------------------
Housing/Single Family 9%
- --------------------------------------------------
Utilities 9%
- --------------------------------------------------
Healthcare 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 37.5%.
2 Taxable-equivalent total return is based on the annualized total return and
a combined federal and state income tax rate of 37.5%. It represents the
return on a taxable investment necessary to equal the return of the Nuveen
fund on an after-tax basis.
3 The Fund also paid shareholders capital gains distributions in December of
$0.1071 per share.
1998-1999 Monthly Tax-Free Dividends Per Share(3)
3/98 0.082
4/98 0.082
5/98 0.079
6/98 0.079
7/98 0.079
8/98 0.079
9/98 0.079
10/98 0.079
11/98 0.079
12/98 0.079
1/99 0.079
2/99 0.079
Line Chart:
Share Price Performance
3/6/98 16.938
16.813
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
16.75
16.938
16.813
16.688
16.688
17
16.813
17
17.313
17.5
17.313
17.31
17.06
17.44
16.88
16.88
17.25
17.25
17.19
17.19
17.5
16.63
16.25
16.25
16.5
16.5
16.56
2/28/99 16.69
Weekly Closing Price
Past performance is not predictive of future results.
<PAGE>
Nuveen California Quality Income Municipal Fund, Inc.
Performance Overview
As of February 28, 1999
NUC
==================================================
Portfolio Statistics
- --------------------------------------------------
Inception Date 11/91
- --------------------------------------------------
Share Price $17 5/16
- --------------------------------------------------
Net Asset Value Per Share $16.33
- --------------------------------------------------
Current Market Yield 5.65%
- --------------------------------------------------
Taxable-Equivalent Yield
(Federal Only)(1) 8.19%
- --------------------------------------------------
Taxable-Equivalent Yield
(Federal and State)(1) 9.04%
- --------------------------------------------------
Fund Net Assets ($000) $503,005
- --------------------------------------------------
Average Weighted Maturity (Years) 14.33
- --------------------------------------------------
Leverage-Adjusted Duration (Years) 7.84
==================================================
Annualized Total Return
- --------------------------------------------------
On Share Price On NAV
- --------------------------------------------------
1-Year 6.70% 7.40%
- --------------------------------------------------
5-Year 10.01% 7.52%
- --------------------------------------------------
Since Inception 8.58% 8.66%
==================================================
Taxable-Equivalent Total Return(2)
- --------------------------------------------------
On Share Price On NAV
- --------------------------------------------------
1-Year 10.21% 11.13%
- --------------------------------------------------
5-Year 13.94% 11.38%
- --------------------------------------------------
Since Inception 12.43% 12.48%
==================================================
Top Five Sectors (as a % of total investments)
- --------------------------------------------------
U.S. Guaranteed 46%
- --------------------------------------------------
Tax Obligation/Limited 23%
- --------------------------------------------------
Utilities 6%
- --------------------------------------------------
Healthcare 6%
- --------------------------------------------------
Housing/Multifamily 5%
- --------------------------------------------------
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 37.5%.
2 Taxable-equivalent total return is based on the annualized total return and
a combined federal and state income tax rate of 37.5%. It represents the
return on a taxable investment necessary to equal the return of the Nuveen
fund on an after-tax basis.
3 The Fund also paid shareholders capital gains distributions in December of
$0.018 per share.
Bar Chart:
1998-1999 Monthly Tax-Free Dividends Per Share(3)
3/98 0.0815
4/98 0.0815
5/98 0.0815
6/98 0.0815
7/98 0.0815
8/98 0.0815
9/98 0.0815
10/98 0.0815
11/98 0.0815
12/98 0.0815
1/99 0.0815
2/99 0.0815
Line Chart:
Share Price Performance
3/6/98 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
17.438
17.375
17.25
17.188
17.5
17.875
18.188
18
18
17.94
17.75
17.56
17.38
18
17.94
17.94
17.94
17.81
16.94
17
16.69
17.06
17.06
17.19
2/28/99 17.31
Weekly Closing Price
Past performance is not predictive of future results.
<PAGE>
Shareholder Meeting Report
The annual shareholder meeting was held in Chicago, Illinois on October 14,
1998.
<TABLE>
<CAPTION>
NCA NCP
- ------------------------------------------------------------------------------------------------------------------------------------
Approval of the Directors was reached as follows:
Preferred Preferred
Common Common Shares Shares
Shares Shares Series-T Series-F
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Robert P. Bremner
For -- 11,528,504 1,722 1,690
Withhold -- 90,505 -- 2
- ------------------------------------------------------------------------------------------------------------------------------------
Total -- 11,619,009 1,722 1,692
- ------------------------------------------------------------------------------------------------------------------------------------
Lawrence H. Brown
For 22,418,900 11,525,304 1,722 1,690
Withhold 255,317 93,705 -- 2
- ------------------------------------------------------------------------------------------------------------------------------------
Total 22,674,217 11,619,009 1,722 1,692
- ------------------------------------------------------------------------------------------------------------------------------------
Anthony T. Dean
For -- 11,527,365 1,722 1,690
Withhold -- 91,644 -- 2
- ------------------------------------------------------------------------------------------------------------------------------------
Total -- 11,619,009 1,722 1,692
- ------------------------------------------------------------------------------------------------------------------------------------
Anne E. Impellizzeri
For -- 11,521,031 1,722 1,690
Withhold -- 97,978 -- 2
- ------------------------------------------------------------------------------------------------------------------------------------
Total -- 11,619,009 1,722 1,692
- ------------------------------------------------------------------------------------------------------------------------------------
Peter R. Sawers
For 22,403,702 11,524,831 1,722 1,690
Withhold 270,515 94,178 -- 2
- ------------------------------------------------------------------------------------------------------------------------------------
Total 22,674,217 11,619,009 1,722 1,692
- ------------------------------------------------------------------------------------------------------------------------------------
William J. Schneider
For -- -- 1,722 1,690
Withhold -- -- -- 2
- ------------------------------------------------------------------------------------------------------------------------------------
Total -- -- 1,722 1,692
- ------------------------------------------------------------------------------------------------------------------------------------
Timothy R. Schwertfeger
For 22,418,057 -- 1,722 1,690
Withhold 256,160 -- -- 2
- ------------------------------------------------------------------------------------------------------------------------------------
Total 22,674,217 -- 1,722 1,692
- ------------------------------------------------------------------------------------------------------------------------------------
Judith M. Stockdale
For -- 11,520,570 1,722 1,690
Withhold -- 98,439 -- 2
- ------------------------------------------------------------------------------------------------------------------------------------
Total -- 11,619,009 1,722 1,692
- ------------------------------------------------------------------------------------------------------------------------------------
Ratification of auditors was reached as follows:
For 22,202,153 11,459,756 1,714 1,689
Against 118,192 19,428 -- 2
Abstain 353,872 139,825 8 1
- ------------------------------------------------------------------------------------------------------------------------------------
Total 22,674,217 11,619,009 1,722 1,692
- ------------------------------------------------------------------------------------------------------------------------------------
<PAGE>
<CAPTION>
Shareholder Meeting Report (continued)
NCO NQC
- ------------------------------------------------------------------------------------------------------------------------------------
Approval of the Directors was reached as follows:
Preferred Preferred
Common Shares Common Shares
Shares Series-W Shares Series-M
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Robert P. Bremner
For 7,176,941 2,170 12,838,988 3,445
Withhold 80,267 1 149,112 16
- ------------------------------------------------------------------------------------------------------------------------------------
Total 7,257,208 2,171 12,988,100 3,461
- ------------------------------------------------------------------------------------------------------------------------------------
Lawrence H. Brown
For 7,176,441 2,170 12,838,988 3,445
Withhold 80,767 1 149,112 16
- ------------------------------------------------------------------------------------------------------------------------------------
Total 7,257,208 2,171 12,988,100 3,461
- ------------------------------------------------------------------------------------------------------------------------------------
Anthony T. Dean
For 7,178,441 2,170 12,837,988 3,444
Withhold 78,767 1 150,112 17
- ------------------------------------------------------------------------------------------------------------------------------------
Total 7,257,208 2,171 12,988,100 3,461
- ------------------------------------------------------------------------------------------------------------------------------------
Anne E. Impellizzeri
For 7,174,215 2,170 12,837,018 3,445
Withhold 82,993 1 151,082 16
- ------------------------------------------------------------------------------------------------------------------------------------
Total 7,257,208 2,171 12,988,100 3,461
- ------------------------------------------------------------------------------------------------------------------------------------
Peter R. Sawers
For 7,178,441 2,170 12,838,988 3,445
Withhold 78,767 1 149,112 16
- ------------------------------------------------------------------------------------------------------------------------------------
Total 7,257,208 2,171 12,988,100 3,461
- ------------------------------------------------------------------------------------------------------------------------------------
William J. Schneider
For -- 2,170 -- 3,445
Withhold -- 1 -- 16
- ------------------------------------------------------------------------------------------------------------------------------------
Total -- 2,171 -- 3,461
- ------------------------------------------------------------------------------------------------------------------------------------
Timothy R. Schwertfeger
For -- 2,170 -- 3,444
Withhold -- 1 -- 17
- ------------------------------------------------------------------------------------------------------------------------------------
Total -- 2,171 -- 3,461
- ------------------------------------------------------------------------------------------------------------------------------------
Judith M. Stockdale
For 7,177,341 2,170 12,835,365 3,445
Withhold 79,867 1 152,735 16
- ------------------------------------------------------------------------------------------------------------------------------------
Total 7,257,208 2,171 12,988,100 3,461
- ------------------------------------------------------------------------------------------------------------------------------------
Ratification of auditors was reached as follows:
For 7,118,033 2,165 12,759,278 3,458
Against 18,783 -- 48,715 2
Abstain 120,392 6 180,107 1
- ------------------------------------------------------------------------------------------------------------------------------------
Total 7,257,208 2,171 12,988,100 3,461
- ------------------------------------------------------------------------------------------------------------------------------------
<PAGE>
<CAPTION>
NVC NUC
- ------------------------------------------------------------------------------------------------------------------------------------
Approval of the Directors was reached as follows:
Preferred Preferred Preferred Preferred
Common Shares Shares Common Shares Shares
Shares Series-T Series-TH Shares Series-W Series-F
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Robert P. Bremner
For 20,835,956 2,155 3,430 20,200,626 2,776 2,905
Withhold 234,125 8 5 144,256 6 14
- ------------------------------------------------------------------------------------------------------------------------------------
Total 21,070,081 2,163 3,435 20,344,882 2,782 2,919
- ------------------------------------------------------------------------------------------------------------------------------------
Lawrence H. Brown
For 20,843,765 2,155 3,430 20,198,793 2,776 2,905
Withhold 226,316 8 5 146,089 6 14
- ------------------------------------------------------------------------------------------------------------------------------------
Total 21,070,081 2,163 3,435 20,344,882 2,782 2,919
- ------------------------------------------------------------------------------------------------------------------------------------
Anthony T. Dean
For 20,843,015 2,155 3,430 20,198,708 2,776 2,905
Withhold 227,066 8 5 146,174 6 14
- ------------------------------------------------------------------------------------------------------------------------------------
Total 21,070,081 2,163 3,435 20,344,882 2,782 2,919
- ------------------------------------------------------------------------------------------------------------------------------------
Anne E. Impellizzeri
For 20,841,158 2,155 3,428 20,198,227 2,776 2,905
Withhold 228,923 8 7 146,655 6 14
- ------------------------------------------------------------------------------------------------------------------------------------
Total 21,070,081 2,163 3,435 20,344,882 2,782 2,919
- ------------------------------------------------------------------------------------------------------------------------------------
Peter R. Sawers
For 20,842,912 2,155 3,430 20,197,994 2,776 2,905
Withhold 227,169 8 5 146,888 6 14
- ------------------------------------------------------------------------------------------------------------------------------------
Total 21,070,081 2,163 3,435 20,344,882 2,782 2,919
- ------------------------------------------------------------------------------------------------------------------------------------
William J. Schneider
For -- 2,155 3,428 -- 2,776 2,905
Withhold -- 8 7 -- 6 14
- ------------------------------------------------------------------------------------------------------------------------------------
Total -- 2,163 3,435 -- 2,782 2,919
- ------------------------------------------------------------------------------------------------------------------------------------
Timothy R. Schwertfeger
For -- 2,155 3,430 -- 2,776 2,905
Withhold -- 8 5 -- 6 14
- ------------------------------------------------------------------------------------------------------------------------------------
Total -- 2,163 3,435 -- 2,782 2,919
- ------------------------------------------------------------------------------------------------------------------------------------
Judith M. Stockdale
For 20,842,546 2,155 3,428 20,195,245 2,776 2,905
Withhold 227,535 8 7 149,637 6 14
- ------------------------------------------------------------------------------------------------------------------------------------
Total 21,070,081 2,163 3,435 20,344,882 2,782 2,919
- ------------------------------------------------------------------------------------------------------------------------------------
Ratification of auditors was reached as follows:
For 20,729,223 2,162 3,421 20,109,140 2,764 2,911
Against 80,391 1 2 61,890 8 --
Abstain 260,467 -- 12 173,852 10 8
- ------------------------------------------------------------------------------------------------------------------------------------
Total 21,070,081 2,163 3,435 20,344,882 2,782 2,919
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
Portfolio of Investments
Nuveen California Municipal Value Fund, Inc. (NCA)
February 28, 1999
(Unaudited)
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Capital Goods - 2.0%
$ 5,000,000 California Pollution Control Financing Authority, Fixed Rate Resource 2/01 at 103 BBB+ $ 5,334,500
Recovery Revenue Bonds (Waste Management, Inc.), 1991 Composite Series A,
7.150%, 2/01/11 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Education and Civic Organizations - 1.4%
1,925,000 ABAG Finance Authority for Nonprofit Corporations (California), 1991 7/01 at 102 Aa2 2,103,929
Certificates of Participation (United Way of Santa Clara County Project),
7.200%, 7/01/11
1,500,000 Certificates of Participation, California Statewide Community 12/06 at 105 N/R 1,643,730
Development Authority, San Diego Space and Science Foundation,
Series 1996, 7.500%, 12/01/26
- ------------------------------------------------------------------------------------------------------------------------------------
Health Care - 7.1%
1,000,000 City of Arcadia, California, Hospital Revenue Bonds (Methodist 11/02 at 102 A 1,080,180
Hospital of Southern California), Series 1992, 6.500%, 11/15/12
8,500,000 California Health Facilities Financing Authority, Kaiser Permanente, 10/08 at 101 A 8,517,850
Revenue Bonds, Series 1998B, 5.250%, 10/01/16
1,095,000 Certificates of Participation, California Statewide Communities 12/07 at 102 AAA 1,124,773
Development Authority, Huntington East Valley Hospital, 5.350%, 12/01/17
2,500,000 City of Modesto, Insured Health Facility Revenue Bonds (Memorial 6/07 at 102 AAA 2,540,475
Hospital Association), Series 1997B, 5.250%, 6/01/21
2,425,000 City of Pasadena, Insured Health Facilities Revenue Bonds (Pacific 6/99 at 100 N/R 2,428,468
Clinics), Series 1988A, 8.200%, 6/01/18
1,265,000 San Benito Hospital District, Insured Health Facility Revenue Bonds, 12/01 at 102 A+ 1,402,948
Series 1991A, 6.750%, 12/01/21
1,440,000 City of Stockton, California, Health Facility Revenue Bonds, 12/07 at 102 BBB+ 1,507,262
Dameron Hospital Association, 1997 Series A, 5.300%, 12/01/08
- ------------------------------------------------------------------------------------------------------------------------------------
Housing/Multifamily - 2.4%
2,090,000 California Statewide Communities Development Authority, Multifamily 11/08 at 100 AAA 2,124,443
Housing Revenue Bonds (Santa Paula Village Apartments), Series 1998D,
5.430%, 5/01/28 (Alternative Minimum Tax)
2,635,000 Community Development Agency of the City of Menlo Park, Multifamily 6/99 at 102 Aa 2,716,580
Housing Revenue Bonds (FHA-Insured Mortgage Loan -The Gateway
Project), Series 1987A, 8.250%, 12/01/28
1,440,000 San Dimas Housing Authority, Mobile Home Park Revenue Bonds (Charter 7/08 at 102 N/R 1,425,701
Oak Mobile Home Estates Acquisition Project), Series 1998A,
5.700%, 7/01/28
- ------------------------------------------------------------------------------------------------------------------------------------
Housing/Single Family - 10.5%
235,000 California Housing Finance Agency, Home Mortgage Revenue Bonds, 8/99 at 101 Aa2 240,020
1988 Series G, 8.150%, 8/01/19 (Alternative Minimum Tax)
3,190,000 California Housing Finance Agency, Home Mortgage Revenue Bonds, 8/07 at 102 AAA 3,320,918
1997 Series H, 5.500%, 8/01/17
2,765,000 California Housing Finance Agency, Home Mortgage Revenue Bonds, 8/05 at 102 AAA 2,933,001
1994 Series F-3, 6.100%, 8/01/15 (Alternative Minimum Tax)
3,000,000 California Housing Finance Agency, Home Mortgage Revenue Bonds, 8/05 at 102 AAA 3,195,690
1995 Series J, 6.000%, 8/01/17
1,480,000 California Housing Finance Agency, Single Family Mortgage Bonds II, 8/07 at 101 1/2 AAA 1,533,043
1997 Series C-2, 5.650%, 2/01/25 (Alternative Minimum Tax)
2,200,000 California Housing Finance Agency, Home Mortgage Revenue Bonds, 2/06 at 102 AAA 2,340,228
1995 Series M, 6.050%, 8/01/15 (Alternative Minimum Tax)
5,500,000 California Housing Finance Agency, Home Mortgage Revenue Bonds, 2/09 at 101 1/2 AAA 5,582,665
1998 Series E Remarketed, 5.250%, 2/01/33 (Alternative Minimum Tax)
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Housing/Single Family (continued)
$ 570,000 California Rural Home Mortgage Finance Authority, Single Family No Opt. Call Aaa $ 652,764
Mortgage Revenue Bonds (Mortgage- Backed Securities Program),
1993 Issue A Series 2, 7.950%, 12/01/24 (Alternative Minimum Tax)
2,675,000 California Rural Home Mortgage Finance Authority, Single Family No Opt. Call AAA 3,062,180
Mortgage Revenue Bonds (Mortgage-Backed Securities Program),
1997 Series D, 6.700%, 5/01/29 (Alternative Minimum Tax)
2,330,000 California Rural Home Mortgage Finance Authority, Single Family No Opt. Call AAA 2,537,044
Revenue Bonds (Mortgage-Backed Securities Program), 1998 Series A,
Mortgage 5.750%, 12/01/29 (Alternative Minimum Tax)
95,000 The City of Los Angeles (California), Single Family Home Mortgage 12/01 at 102 AAA 99,957
Revenue Bonds (GNMA and FNMA Mortgage-Backed Securities Program),
1991 Issue A, 6.875%, 6/01/25 (Alternative Minimum Tax)
1,740,000 Southern California Home Financing Authority, Single Family Mortgage No Opt. Call AAA 1,906,205
Revenue Bonds (GNMA Mortgage-Backed Securities Program),
1988 Issue A, 8.125%, 2/01/21 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Long-Term Care - 3.1%
2,720,000 Revenue Refunding Certificates of Participation (American Baptist 10/07 at 102 BBB 2,761,235
Homes of the West Facilities Project), Series 1997A, 5.750%, 10/01/17
5,000,000 California Statewide Communities Development Authority, Series A 4/03 at 102 A+ 5,323,050
Certificates of Participation, Pacific Homes, 6.000%, 4/01/17
- ------------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/General - 3.7%
1,885,000 State of California, Various Purpose, General Obligation Bonds, No Opt. Call Aa3 2,294,893
7.000%, 8/01/08
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 1,245,492
1,235,000 5.875%, 7/01/24 7/05 at 102 3/8 AAA 1,339,654
2,000,000 Lucia Mar Unified School District, San Luis Obispo County, California, 8/07 at 102 AAA 2,080,000
Election 1997 General Obligation Bonds, Series A, 5.400%, 8/01/22
2,325,000 Temecula Valley Unified School District, County of Riverside, California, 9/06 at 102 AAA 2,549,595
1990 General Obligation Bonds, Series F, 6.000%, 9/01/20
- ------------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited - 33.6%
2,895,000 Certificates of Participation (1991 Financing Project), 9/06 at 102 AAA 3,184,355
County of Alameda, California, Alameda County Public
Facilities Corporation, 6.000%, 9/01/21
4,500,000 Bonita Canyon Public Facilities Financing Authority (California), 9/99 at 103 N/R 4,381,155
Community Facilities District No. 98-1, Special Tax Bonds,
Series 1998, 5.375%, 9/01/28
9,000,000 State Public Works Board of the State of California Lease Revenue Bonds 1/06 at 100 AAA 9,125,910
(Department of Corrections), 1996 Series A (California Substance Abuse
Treatment Facility and State Prison at Corcoran (Corcoran II)),
1/01/21
3,995,000 Chino Unified School District, Certificates of Participation (1995 9/05 at 102 AAA 4,386,310
Master Lease Program), 6.000%, 9/01/20
2,800,000 Community Development Commission of the City of Commerce, 8/07 at 102 N/R 2,859,696
Redevelopment Project No. 1, Subordinate Lien Tax Allocation, Refunding
Bonds Series 1997B, 6.000%, 8/01/21
2,000,000 Redevelopment Agency of the City of Duarte, Amended Davis Addition 9/07 at 102 N/R 2,134,500
Project Area, 1997 Tax Allocation Refunding Bonds, 6.700%, 9/01/14
930,000 Inglewood Public Finance Authority, 1992 Revenue Bonds, Series B 5/02 at 102 BBB 1,032,570
(In-Town, Manchester-Prairie and North Inglewood Industrial Park
Redevelopment Project), Redevelopment Loans, 7.000%, 5/01/22
920,000 Inglewood Public Finance Authority, 1992 Revenue Bonds, Series C 5/02 at 102 A- 997,482
(In-Town, Manchester and North Inglewood Industrial Park Redevelopment
Projects, Housing Set-Aside Loans), 7.000%, 5/01/22
2,000,000 Los Angeles Convention and Exhibition Center Authority, Lease Revenue 8/03 at 102 AAA 2,012,000
Bonds, 1993 Refunding Series A, The City of Los Angeles (California),
5.125%, 8/15/21
1,000,000 Los Angeles County Metropolitan Transportation Authority (California), 7/05 at 102 AAA 1,047,960
Proposition C Sales Tax Revenue Bonds, Second Senior Bonds,
Series 1995-A, 5.500%, 7/01/17
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Tax Obligation/Limited (continued)
$ 1,000,000 Los Angeles County Metropolitan Transportation Authority (California), 7/06 at 101 AAA $ 1,068,750
Sales Tax Revenue Refunding Bonds, Proposition A-2nd Tier, Series 1996,
5.750%, 7/01/18
3,500,000 Los Angeles County Metropolitan Transportation Authority (California), 7/08 at 101 AAA 3,482,675
Proposition C Sales Tax Revenue Refunding Bonds, Second Senior
Bonds, Series 1998-A, 5.000%, 7/01/23
4,735,000 City of Milpitas, Limited Obligation Improvement Bonds, Local 3/99 at 103 N/R 4,881,501
Improvement District No. 20, 1998 Series A (Santa Clara County,
California), 5.650%, 9/02/13
3,300,000 Orange County Development Agency, Santa Ana Heights Project Area, 9/03 at 102 BBB 3,478,926
1993 Tax Allocation Revenue Bonds (California), 6.125%, 9/01/23
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 1,454,961
1,515,000 5.375%, 9/02/12 3/99 at 102 1/2 N/R 1,541,482
5,000,000 Palm Desert Financing Authority, Tax Allocation Refunding Revenue Bonds 4/02 at 100 AAA 5,337,100
(Project Area No. 1, as Amended), Series 1997, 5.625%, 4/01/23
1,750,000 County of Riverside Asset Leasing Corporation, Leasehold Revenue 6/12 at 101 AAA 1,925,280
Bonds, 1997 Series B (County of Riverside Hospital Project),
5.700%, 6/01/16
1,000,000 Riverside County Public Financing Authority, 1997 Lease Revenue 10/07 at 102 AAA 1,038,430
Bonds (State of California Court of Appeal Fourth Appellate District,
Division Two Project), 5.375%, 10/01/22
1,500,000 Sacramento Area Flood Control Agency (California), North Area 10/05 at 102 AAA 1,548,900
Local Project, Capital Assessment District No. 2 Bonds, Series 1995,
5.375%, 10/01/25
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 2,425,244
5,000,000 5.250%, 9/01/28 9/07 at 102 AAA 5,099,150
500,000 City of San Diego, California, Convention Center Expansion Financing 10/08 at 101 AAA 480,550
Authority, Lease Revenue Bonds, Series 1998A, 4.750%, 4/01/28
4,000,000 San Francisco Bay Area Rapid Transit District (California), Sales Tax 7/08 at 101 AAA 3,978,400
Revenue Bonds, Series 1998, 5.000%, 7/01/28
8,000,000 Redevelopment Agency of the City of San Jose, Merged Area 2/04 at 102 AAA 7,973,680
Redevelopment Project, Tax Allocation Bonds, Series 1993,
5.000%, 8/01/20
1,000,000 Redevelopment Agency of the City of San Jose (California), Merged 8/08 at 101 AAA 960,340
Area Redevelopment Project, Tax Allocation Bonds, Series 1999,
4.750%, 8/01/29
1,700,000 Shafter Joint Powers Financing Authority, Lease Revenue Bonds, 1/07 at 101 A2 1,855,176
1997 Series A (Community Correctional Facility Acquisition Project),
5.950%, 1/01/11
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 1,057,710
1,000,000 6.200%, 8/01/15 8/05 at 102 N/R 1,050,450
2,570,000 Vista Joint Powers Financing Authority, Special Tax Leases Revenue 9/05 at 102 N/R 2,612,970
Refunding Bonds, 1997 Series A, 5.875%, 9/01/20
1,000,000 Vista Joint Power Financing Authority, Special Tax Lease Revenue 7/99 at 100 N/R 1,000,040
Refunding Bonds, 1997 Series B, 5.500%, 9/01/20
1,725,000 City of Visalia, California, Refunding Certificates of Participation 12/06 at 102 AAA 1,784,461
(Multiple Projects), Visalia Public Finance Authority, Series 1996B,
5.375%, 12/01/19
- ------------------------------------------------------------------------------------------------------------------------------------
Transportation - 5.9%
3,000,000 Port of Oakland, California, Revenue Bonds, 1997 Series G, 11/07 at 102 AAA 3,073,260
5.375%, 11/01/25 (Alternative Minimum Tax)
5,490,000 Airports Commission, City and County of San Francisco, California, 5/06 at 102 AAA 5,754,124
San Francisco International Airport, Second Series Revenue Bonds,
Issue 10, 5.625%, 5/01/21 (Alternative Minimum Tax)
<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, 5/05 at 101 AAA $ 6,512,819
San Francisco International Airport, Second Series Revenue Bonds,
Issue 11 (Noise Insulation Program), 6.200%, 5/01/19
(Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. Guaranteed - 18.3%
1,000,000 California Health Facilities Financing Authority, Health Facility 5/00 at 102 Aaa 1,069,120
Revenue Bonds (Health Dimensions, Incorporated), 1990 Series A,
7.375%, 5/01/07 (Pre-refunded to 5/01/00)
1,500,000 California Health Facilities Financing Authority, Revenue Bonds 7/01 at 102 AA-*** 1,652,595
(St. Joseph Health System), Series 1991 A, 7.000%, 7/01/10
(Pre-refunded to 7/01/01)
Trust Certificates, Trustees of the California State University to the
California State University Institute:
1,405,000 7.000%, 6/01/07 (Pre-refunded to 12/01/00) 12/00 at 101 7/8 AAA 1,524,678
1,725,000 7.200%, 6/01/10 (Pre-refunded to 12/01/00) 12/00 at 101 7/8 AAA 1,877,559
2,750,000 Campbell Union School District, Santa Clara County, California, 8/04 at 102 AAA 3,148,118
1994 General Obligation Bonds, Series A, 6.250%, 8/01/19
(Pre-refunded to 8/01/04)
2,065,000 County of Contra Costa, California, 1988 Home Mortgage, Mortgage No Opt. Call AAA 2,878,383
Revenue Bonds (GNMA Mortgage-Backed Securities Program),
8.250%, 6/01/21 (Alternative Minimum Tax)
1,470,000 El Paso de Robles Redevelopment Agency (Paso Robles Redevelopment 7/00 at 102 NR*** 1,576,693
Project), 1991 Tax Allocation Bonds (Bank Qualified), 7.250%, 7/01/21
(Pre-refunded to 7/01/00)
2,500,000 The Community Redevelopment Agency of the City of Los Angeles, 7/00 at 100 BBB*** 2,585,325
California, Central Business District Redevelopment Project Tax Allocation
Refunding Bonds, Series G, 6.750%, 7/01/10
8,515,000 Los Angeles Convention and Exhibition Center Authority, California, 12/05 at 100 AAA 11,166,060
Certificates of Participation, Series 1985, 9.000%, 12/01/20
(Pre-refunded to 12/01/05)
4,000,000 Modesto Irrigation District Financing Authority, Domestic Water Project 9/05 at 102 AAA 4,527,560
Revenue Bonds, Series 1995C, 5.750%, 9/01/22 (Pre-refunded to 9/01/05)
8,565,000 City of Palmdale, California, Single Family Mortgage Revenue Bonds (GNMA No Opt. Call AAA 3,439,190
Mortgage-Backed Securities Program), Series 1988A, 0.000%, 3/01/17
20,415,000 County of San Bernardino, California, Single Family Mortgage Revenue No Opt. Call Aaa 6,421,334
Bonds (GNMA Mortgage-Backed Securities), 1988 Series A,
0.000%, 9/01/21 (Alternative Minimum Tax)
5,050,000 The Regents of the University of California, Refunding Revenue Bonds 9/02 at 102 AA-*** 5,704,632
(Multiple Purpose Projects), Series A, 6.875%, 9/01/16
(Pre-refunded to 9/01/02)
- ------------------------------------------------------------------------------------------------------------------------------------
Utilities - 2.7%
1,100,000 Department of Water and Power of the City of Los Angeles (California), 5/00 at 102 Aa3 1,170,829
Electric Plant Revenue Bonds, Issue of 1990, 7.125%, 5/15/30
1,250,000 Northern California Power Agency, Hydroelectric Project Number 7/08 at 101 AAA 1,267,575
One Revenue Bonds, 1998 Refunding Series A, 5.200%, 7/01/32
1,600,000 Southern California Public Power Authority, Mead-Phoenix Project 7/04 at 102 AAA 1,576,672
Revenue Bonds, 1994 Series A, 4.750%, 7/01/16
3,000,000 Southern California Public Power Authority, Transmission Project 7/03 at 100 AAA 2,973,270
Revenue Bonds, 1993 Subordinate Refunding Series (Southern
Transmission Project), 5.000%, 7/01/22
- ------------------------------------------------------------------------------------------------------------------------------------
Water and Sewer - 8.3%
2,015,000 Azusa Public Financing Authority (California), Revenue Bonds, 7/03 at 102 AAA 1,996,664
Series 1993A (City of Azusa Water System Acquisition Project),
5.000%, 7/01/23
5,000,000 Castaic Lake Water Agency (California), Refunding Revenue 8/04 at 102 AAA 5,591,250
Certificates of Participation (Water System Improvement Projects),
Series 1994A, 6.300%, 8/01/20
2,000,000 Contra Costa Water Authority (Contra Costa County, California), 10/02 at 102 AAA 2,127,660
Water Treatment Revenue Refunding Bonds 1993 Series A,
5.750%, 10/01/20
7,750,000 Sacramento County Sanitation Districts Financing Authority, 12/03 at 102 AA 7,354,750
1993 Revenue Bonds, 4.750%, 12/01/23
<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 5/07 at 101 AAA $ 2,548,324
(California), Sewer Revenue Bonds, Series 1997A, 5.250%, 5/15/22
1,925,000 San Jacinto Financing Authority, Revenue Bonds, Series 1997 4/07 at 102 AAA 2,034,108
(Water Improvement Project), 5.500%, 10/01/18
- ------------------------------------------------------------------------------------------------------------------------------------
$ 263,085,000 Total Investments - (cost $235,529,811) - 99.0% 257,699,139
=============
Other Assets Less Liabilities - 1.0% 2,621,433
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $260,320,572
====================================================================================================================
* Optional Call Provisions: Dates (month and year) and prices of the
earliest optional call or redemption. There may be other call
provisions at varying prices at later dates.
** Ratings: 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 Performance Plus Municipal Fund, Inc. (NCP)
February 28, 1999
(Unaudited)
<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 10/06 at 102 AAA $ 1,645,890
of San Francisco), Series 1996, 6.000%, 10/01/26
1,000,000 State Public Works Board of the State of California, Lease Revenue 10/07 at 102 A 1,031,300
Bonds (Various California State University Project), 1997 Series C,
5.400%, 10/01/22
- ------------------------------------------------------------------------------------------------------------------------------------
Health Care - 3.4%
2,780,000 California Health Facilities Financing Authority, Insured Health 5/03 at 102 A+ 2,954,195
Facility Revenue Refunding Bonds (Valley Memorial Hospital), 1993A,
6.000%, 5/01/17
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 2,519,775
4,720,000 5.000%, 2/01/23 2/03 at 100 Baa1 4,455,774
- ------------------------------------------------------------------------------------------------------------------------------------
Housing/Multifamily - 2.8%
1,500,000 California Statewide Communities Development Authority, Apartment 7/08 at 101 BBB 1,516,515
Development Revenue Refunding Bonds (Irvine Apartment
Communities, L.P.), Series 1998A, 5.250%, 5/15/25
3,915,000 The City of Los Angeles Multifamily Housing Revenue Bonds (GNMA 3/07 at 102 AAA 4,155,029
Collateralized - Ridgecroft Apartments Project), Series 1997E,
6.250%, 9/20/39 (Alternative Minimum Tax)
2,300,000 Community Development Commission of the County of Los Angeles, 5/03 at 100 Aaa 2,395,956
Mortgage Revenue Refunding Bonds, Series 1993, FHA Insured
Mortgage Loans - Los Tomas Apartments, Section 8 Assisted
Project, 6.500%, 7/15/23
- ------------------------------------------------------------------------------------------------------------------------------------
Housing/Single Family - 2.8%
3,350,000 California Housing Finance Agency, Home Mortgage Revenue Bonds, 2/00 at 102 Aa 3,467,753
1990 Series A, 7.700%, 8/01/30 (Alternative Minimum Tax)
2,230,000 California Housing Finance Agency, Home Mortgage Revenue Bonds, 2/05 at 102 Aa 2,410,474
1995 Series B, 7.125%, 2/01/26 (Alternative Minimum Tax)
2,085,000 Southern California Home Financing Authority, Single Family 10/00 at 102 AAA 2,176,928
Mortgage Revenue Bonds (GNMA Mortgage-Backed Securities Program),
1990 Issue A, 7.625%, 10/01/23 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Long-Term Care - 1.4%
4,120,000 California Health Facilities Financing Authority, Insured Health 8/08 at 100 A+ 4,148,799
Facility Revenue Bonds (Casa de las Campanas), 1998 Series A,
5.250%, 8/01/20
- ------------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/General - 4.2%
290,000 State of California, Various Purpose General Obligation Bond, 3/05 at 101 Aa3 316,007
5.750%, 3/01/14
2,800,000 State of California, General Obligation Bonds, 5.125%, 10/01/27 10/07 at 101 Aa3 2,808,288
1,165,000 State of California, Veterans General Obligation Bonds, Series BL, 12/08 at 101 Aa3 1,198,610
5.300%, 12/01/12 (Alternative Minimum Tax)
5,500,000 Hawthorne School District (Los Angeles County, California), General 11/08 at 102 AAA 5,848,370
Obligation Bonds, 1997 Election, 1997 Series A, 5.500%, 5/01/22
1,000,000 Pasadena Unified School District, County of Los Angeles, California, 5/08 at 101 AAA 995,070
1998 General Obligation Bonds (Election of 1997, Series A),
5.000%, 5/01/23
1,000,000 Pomona Unified School District, General Obligation Refunding Bonds, 8/11 at 103 AAA 1,151,620
Series 1997-A, 6.150%, 8/01/15
- ------------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited - 24.1%
1,000,000 Certificates of Participation (Town Center Project), Town of Apple 9/05 at 102 A 1,094,520
Valley (San Bernardino County, California), 6.375%, 9/01/15
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Tax Obligation/Limited (continued)
$ 1,850,000 City of Coalinga, California, Certificates of Participation 4/00 at 102 BBB+ $ 1,948,642
(1989 Coalinga Return to Custody Facility), 7.000%, 4/01/10
2,000,000 Cudahy Redevelopment Agency, Cudahy Redevelopment Project, Tax 9/03 at 102 BBB 2,171,680
Allocation Refunding Bonds, Series 1994A, 6.700%, 9/01/24
3,000,000 Folsom Public Financing Authority (Sacramento County, California), 10/00 at 102 BBB+ 3,171,210
1990 Local Agency Revenue Bonds, Series A, 7.250%, 10/01/10
3,000,000 Fontana Public Financing Authority (San Bernardino County, California), 9/00 at 102 BBB 3,161,670
Tax Allocation Revenue Bonds (North Fontana Redevelopment Project),
1990 Series A, 7.250%, 9/01/20
2,500,000 Fruitvale School District, Certificates of Participation (1990 6/00 at 102 Baa 2,680,300
Improvement Project), 7.875%, 6/01/04
3,500,000 City of Irvine, Mobile Home Park Revenue Bonds (Meadows Mobile 3/08 at 102 N/R 3,528,455
Home Park Project), Series 1998A, 5.700%, 3/01/28
5,000,000 Los Angeles County Metropolitan Transportation Authority (California), 7/03 at 100 AAA 4,956,500
Proposition A, Sales Tax Revenue Refunding Bonds, Series 1993-A,
5.000%, 7/01/21
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 2,567,495
2,500,000 7.500%, 6/01/21 6/01 at 102 BB 2,632,025
8,800,000 County of Orange, California, 1996 Recovery Certificates of 7/06 at 102 AAA 9,636,968
Participation, Series A, 6.000%, 7/01/26
2,790,000 Pleasanton Joint Powers Financing Authority, Reassessment Revenue 9/03 at 102 Baa1 3,027,038
Bonds, 1993 Series A, 6.000%, 9/02/05
1,000,000 Redevelopment Agency of the City of Pomona, Holt Avenue/Indian 6/02 at 102 N/R 1,003,720
Hill Redevelopment Project 1997 Tax Allocation Refunding Bonds,
Series S, 5.750%, 6/01/16
2,215,000 Rancho Cucamonga Redevelopment Agency (San Bernardino 9/99 at 102 AAA 2,303,091
County, California), Rancho Redevelopment Project, 1990 Tax Allocation
Bonds, 7.125%, 9/01/19
11,905,000 Redevelopment Agency of the City of San Jose (California), 8/08 at 102 A 11,991,073
Merged Area Redevelopment Project, Tax Allocation Bonds,
Series 1998, 5.250%, 8/01/29
6,470,000 City of San Leandro, California, San Leandro Public Financing Authority, 6/03 at 102 A 6,805,340
Certificates of Participation (1993 Seismic Retrofit Financing Project),
5.950%, 6/01/23
1,000,000 San Marcos Unified School District (California), Community Facilities 9/99 at 103 N/R 998,210
District No. 5 (Rancho Carillo), Series 1999 Special Tax Bonds,
5.500%, 9/01/18 (WI)
2,250,000 San Marcos Unified School District (California), Community Facilities 9/99 at 103 N/R 2,245,073
District No. 5 (Rancho Carillo), Series 1999 Special Tax Bonds,
5.600%, 9/01/29 (WI)
1,000,000 City of Stockton, Mello-Roos Revenue Bonds, Series 1998A, Community 9/06 at 102 N/R 1,024,590
Facilities District No. 1 (Weston Ranch), 5.800%, 9/01/14
1,370,000 Redevelopment Agency of the City of Suisun City, Suisun City 10/03 at 102 AAA 1,476,161
Redevelopment Project, 1993 Tax Allocation Refunding Bonds
(County of Solano, California), 5.900%, 10/01/23
1,750,000 Taft Public Financing Authority Lease Revenue Bonds 1/07 at 101 A2 1,908,550
1997 Series A (Community Correctional Facility
Acquisition Project), 5.950%, 1/01/11
- ------------------------------------------------------------------------------------------------------------------------------------
Transportation - 6.4%
3,000,000 Foothill/Eastern Transportation Corridor Agency (California), Toll Road 1/05 at 102 BBB- 3,207,060
Revenue Bonds, Series 1995A, 6.000%, 1/01/34
1,320,000 County of Orange, California, Airport Revenue Refunding Bonds, 7/07 at 102 AAA 1,436,173
Series 1997, 5.625%, 7/01/12 (Alternative Minimum Tax)
8,000,000 Port of Oakland, California, Revenue Bonds, 1990 Series D, No Opt. Call AAA 8,615,760
8.000%, 11/01/00
5,000,000 Airports Commission, City and County of San Francisco, California, 5/05 at 101 AAA 5,520,800
San Francisco International Airport, Second Series Revenue Bonds,
Issue 11 (Noise Insulation Program), 6.250%, 5/01/26
(Alternative Minimum Tax)
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
U.S. Guaranteed - 32.6%
$ 6,080,000 City of Anaheim, California, Certificates of Participation, Anaheim 5/00 at 102 AAA $ 6,493,926
Memorial Hospital Association, 7.125%, 5/15/13
(Pre-refunded to 5/15/00)
2,000,000 California Educational Facilities Authority, Revenue Bonds 10/00 at 102 Aaa 2,175,740
(St. Mary's College of California Project), Series 1990,
7.500%, 10/01/20 (Pre-refunded to 10/01/00)
2,000,000 California Health Facilities Financing Authority, Kaiser Permanente, 10/99 at 102 A*** 2,087,440
Revenue Bonds, 1989 Series A, 7.000%, 10/01/08
(Pre-refunded to 10/01/99)
5,500,000 California Health Facilities Financing Authority, Health Facility 1/00 at 102 N/R*** 5,912,830
Revenue Bonds (Pomona Valley Hospital Medical Center),
1989 Series A, 9.750%, 1/01/19 (Pre-refunded to 1/01/00)
6,500,000 California Health Facilities Financing Authority, Insured Hospital 7/00 at 102 AAA 6,959,485
Revenue Bonds (Children's Hospital- San Diego), Series 1990,
7.000%, 7/01/13 (Pre-refunded to 7/01/00)
California Health Facilities Financing Authority, Health Facility
Revenue Bonds (Health Dimensions,
Incorporated), 1990 Series A:
4,175,000 7.250%, 5/01/03 (Pre-refunded to 5/01/00) 5/00 at 102 Aaa 4,457,564
5,000,000 7.500%, 5/01/15 (Pre-refunded to 5/01/00) 5/00 at 102 Aaa 5,352,800
4,800,000 California Health Facilities Financing Authority, Health Facility 10/00 at 102 N/R*** 5,209,152
Revenue Bonds (Sisters of Providence), Series 1990,
7.500%, 10/01/10 (Pre-refunded to 10/01/00)
5,710,000 State of California, Various Purpose General Obligation Bond, 3/05 at 101 Aa3*** 6,357,229
5.750%, 3/01/14 (Pre-refunded to 3/01/05)
3,000,000 California Statewide Communities Development Authority No Opt. Call A+*** 3,341,310
(Triad Healthcare), Revenue Refunding Series 1992, Certificates
of Participation, 6.250%, 8/01/06
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 1,630,215
1,610,000 7.150%, 6/01/09 (Pre-refunded to 12/01/00) 12/00 at 101 7/8 AAA 1,751,084
4,000,000 Contra Costa Water District (Contra Costa County, California), 10/00 at 102 N/R*** 4,297,880
Water Revenue Bonds, Series C, 6.750%, 10/01/20
(Pre-refunded to 10/01/00)
4,000,000 County of Contra Costa, California, 1988 Home Mortgage, No Opt. Call AAA 5,575,560
Mortgage Revenue Bonds (GNMA Mortgage-Backed Securities Program),
8.250%, 6/01/21 (Alternative Minimum Tax)
3,000,000 Hospital Revenue Certificates of Participation (Desert Hospital 7/00 at 102 AAA 3,256,050
Corporation Project), Series 1990, 8.100%, 7/01/20
(Pre-refunded to 7/01/00)
10,000,000 East Bay Municipal Utility District (Alameda and Contra Costa 6/00 at 102 AAA 10,742,200
Counties, California), Water System Subordinated Revenue Bonds,
Series 1990, 7.500%, 6/01/18 (Pre-refunded to 6/01/00)
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*** 1,801,949
1,765,000 6.700%, 5/01/09 (Pre-refunded to 5/01/00) 5/00 at 102 A2*** 1,872,877
2,000,000 LaQuinta Redevelopment Agency, LaQuinta Redevelopment Project, 9/00 at 102 AAA 2,195,260
Tax Allocation Refunding Bonds, Series 1990, 8.400%, 9/01/12
(Pre-refunded to 9/01/00)
2,285,000 Rancho Cucamonga Redevelopment Agency (San Bernardino 9/99 at 102 AAA 2,380,422
County, California), Rancho Redevelopment Project, 1990 Tax
Allocation Bonds, 7.125%, 9/01/19 (Pre-refunded to 9/01/99)
4,630,000 County of Sacramento (California), Airport System 7/06 at 102 AAA 5,333,112
PFC and Subordinated Revenue Bonds, Series 1996D,
6.000%, 7/01/16 (Pre-refunded to 7/01/06)
2,650,000 San Diego County Water Authority, Water Revenue Certificates 5/01 at 102 AA-*** 2,872,521
of Participation, Series 1991A, 6.375%, 5/01/06
(Pre-refunded to 5/01/01)
2,500,000 Sierra View Local Hospital District, Insured Health Facility 3/02 at 102 A+*** 2,750,550
Revenue Bonds, Series 1992, 6.400%, 3/01/22
(Pre-refunded to 3/01/02)
- ------------------------------------------------------------------------------------------------------------------------------------
Utilities - 11.5%
10,250,000 California Pollution Control Financing Authority, Solid Waste Disposal 7/07 at 102 N/R 10,557,705
Revenue Bonds (CanFibre of Riverside Project), Tax-Exempt
Series 1997A, 9.000%, 7/01/19 (Alternative Minimum Tax)
12,600,000 City of Chula Vista, Industrial Development Revenue Bonds (San Diego 12/02 at 102 AAA 13,846,770
Gas and Electric Company), 1992 Series A, 6.400%, 12/01/27
(Alternative Minimum Tax)
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Utilities (continued)
$ 4,545,000 Department of Water and Power of The City of Los Angeles (California), 10/03 at 102 Aa3 $ 4,453,055
Electric Plant Revenue Bonds, Second Issue of 1993, 5.000%, 10/15/33
4,410,000 Stanislaus County Waste-to-Energy Financing Agency, Solid Waste 1/00 at 102 BBB+ 4,593,147
Facility Refunding Revenue Certificates (Ogden Martin System of
Stanislaus, Inc. Project), Series 1990, 7.625%, 1/01/10
- ------------------------------------------------------------------------------------------------------------------------------------
Water and Sewer - 9.4%
2,750,000 East Bay Municipal Utility District (Alameda and Contra Costa 6/06 at 100 AAA 2,656,308
Counties, California), Wastewater System Subordinated Revenue/
Refunding Bonds, Series 1996, 4.750%, 6/01/21
Department of Water and Power of The City of Los Angeles, Water
Works Refunding Revenue Bonds, Second Issue of 1993:
3,000,000 4.500%, 5/15/13 5/03 at 102 AA 2,936,580
4,270,000 4.500%, 5/15/18 5/03 at 102 AA 3,995,439
5,000,000 The City of Los Angeles Wastewater System Revenue Bonds, 6/99 at 102 A+ 5,154,850
Refunding Series 1991-C, 7.100%, 6/01/18
1,500,000 City of Norco Refunding Certificates of Participation, Series 1998 10/08 at 102 AAA 1,514,295
(Sewer System and Water System Improvement Project),
5.125%, 10/01/28
5,000,000 Revenue Certificates of Participation, Series 1993A, Orange 8/03 at 100 AA 4,947,750
County Water District, 5.000%, 8/15/18
1,500,000 San Diego County Water Authority (California), Water Revenue 5/08 at 101 AA- 1,446,494
Refunding Certificates of Participation, Series 1997A, 4.750%, 5/01/20
4,585,000 City of Santa Maria, California, Water and Wastewater Revenue 8/12 at 101 AAA 3,652,364
Subordinate Certificates of Participation, Series 1997A,
0.000%, 8/01/27
1,000,000 City of Stockton (California), Revenue Certificates of Participation, 9/08 at 102 AAA 1,016,899
1998 Series A (Wastewater System Project), 5.200%, 9/01/29
- ------------------------------------------------------------------------------------------------------------------------------------
$ 275,235,000 Total Investment - (cost $266,669,194) - 99.5% 289,887,269
=============
Other Assets Less Liabilities - 0.5% 1,602,586
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $291,489,855
====================================================================================================================
* Optional Call Provisions: Dates (month and year) and prices of the
earliest optional call or redemption. There may be other call
provisions at varying prices at later dates.
** Ratings: 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.
(WI) Security purchased on a when-issued basis (note 1).
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
Portfolio of Investments
Nuveen California Municipal Market Opportunity Fund, Inc. (NCO)
February 28, 1999
(Unaudited)
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Education and Civic Organizations - 1.2%
$ 1,000,000 California Educational Facilities Authority, Revenue Bonds 10/06 at 102 AAA $ 1,097,260
(University of San Francisco), Series 1996, 6.000%, 10/01/26
1,000,000 State Public Works Board of the State of California, Lease Revenue 10/07 at 102 A 1,031,300
Bonds (Various California State University Projects), 1997 Series C,
5.400%, 10/01/22
- ------------------------------------------------------------------------------------------------------------------------------------
Health Care - 13.3%
6,250,000 California Health Facilities Financing Authority, Kaiser Permanent 10/99 at 102 A 6,525,563
Revenue Bonds, 1989 Series A, 7.000%, 10/01/18
2,000,000 California Health Facilities Financing Authority, Insured Health 5/03 at 102 A+ 2,125,320
Facility Revenue Refunding Bonds (Valley Memorial Hospital),
1993A, 6.000%, 5/01/17
6,800,000 Central Joint Powers Health Financing Authority, Certificates of 2/03 at 100 Baa1 6,419,336
Participation, Series 1993 (Community Hospital of Central California),
5.000%, 2/01/23
City of Loma Linda California, Hospital Revenue Bonds (Loma
Linda University Medical Center Project), Series 1993-A:
5,970,000 5.750%, 12/01/03 No Opt. Call BBB 6,265,217
3,000,000 6.500%, 12/01/18 12/03 at 102 BBB 3,200,190
- ------------------------------------------------------------------------------------------------------------------------------------
Housing/Multifamily - 3.1%
5,675,000 California Statewide Communities Development Authority, 7/08 at 101 BBB 5,737,482
Apartment Development Revenue Refunding Bonds (Irvine Apartment
Communities, L.P.), Series 1998A, 5.250%, 5/15/25
- ------------------------------------------------------------------------------------------------------------------------------------
Housing/Single Family - 2.6%
815,000 California Housing Finance Agency, Home Mortgage Revenue Bonds, 8/99 at 101 Aa 832,482
1988 Series C, 8.300%, 8/01/19 (Alternative Minimum Tax)
4,000,000 California Housing Finance Agency, Home Mortgage Revenue Bonds, 2/09 at 101 1/2 AAA 4,060,120
1998 Series E Remarketed, 5.250%, 2/01/33 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/General - 3.1%
3,000,000 State of California, Veterans General Obligation Bonds, Series BL, 12/08 at 101 Aa3 3,086,550
5.300%, 12/01/12 (Alternative Minimum Tax)
1,225,000 Fresno Unified School District (Fresno County, California), 1998 2/13 at 103 AAA 1,453,622
General Obligation Refunding Bonds, Series A, 6.550%, 8/01/20
1,000,000 Pomona Unified School District, General Obligation Refunding Bonds, 8/11 at 103 AAA 1,151,620
Series 1997-A, 6.150%, 8/01/15
- ------------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited - 21.9%
5,000,000 Fontana Public Financing Authority (San Bernardino County, California), 9/00 at 102 BBB 5,269,450
Tax Allocation Revenue Bonds (North Fontana Redevelopment Project),
1990 Series A, 7.250%, 9/01/20
1,750,000 Inglewood Redevelopment Agency (City of Inglewood, Los Angeles No Opt. Call BBB 1,796,288
County, California), Century Redevelopment Project, 1993 Tax
Allocation Bonds, Series A, 5.900%, 7/01/03
2,100,000 Inland Empire Solid Waste Financing Authority, Revenue Bonds, No Opt. Call AAA 2,399,670
1996 Series B (Landfill Improvement Financing Project),
6.250%, 8/01/11 (Alternative Minimum Tax)
3,250,000 Lake Elsinore School Financing Authority (California), 1998 Special 9/08 at 101 N/R 3,239,210
Tax Revenue Bonds (Horsethief Canyon), 5.625%, 9/01/16
2,000,000 Certificates of Participation, County of Mendocino to the Mendocino 8/03 at 102 A 2,126,580
County Public Facilities Corporation, 6.000%, 8/15/23
1,000,000 Menifee Union School District (Riverside County, California), 9/06 at 102 AAA 1,111,850
Certificates of Participation (1996 School Project), 6.125%, 9/01/24
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Tax Obligation/Limited (continued)
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 $ 2,625,250
2,000,000 7.500%, 6/01/21 6/01 at 102 BB 2,105,620
1,000,000 City of Ontario, Community Facilities District No. 5 (Freeway 9/06 at 102 N/R 1,048,960
Interchange Project), Special Tax Bonds, Series 1997, 6.375%, 9/01/17
10,900,000 Ontario Redevelopment Financing Authority (San Bernardino County, No Opt. Call AAA 14,863,131
California), 1995 Revenue Refunding Bonds (Ontario Redevelopment
Project No.1), 7.400%, 8/01/25
2,255,000 San Bernardino County, California, Certificates of Participation, 8/05 at 102 AAA 2,352,980
Series 1995 (Medical Center Financing Project), 5.500%, 8/01/22
400,000 City of San Diego, California, Convention Center Expansion Financing 10/08 at 101 AAA 384,440
Authority, Lease Revenue Bonds, Series 1998A, 4.750%, 4/01/28
1,065,000 Redevelopment Agency of the City of Suisun City, Suisun City 10/03 at 102 AAA 1,147,527
Redevelopment Project, 1993 Tax Allocation Refunding Bonds
(County of Solano, California), 5.900%, 10/01/23
- ------------------------------------------------------------------------------------------------------------------------------------
Transportation - 5.9%
1,000,000 Foothill/Eastern Transportation Corridor Agency (California), Toll Road 1/05 at 102 BBB- 1,069,020
Revenue Bonds, Series 1995A, 6.000%, 1/01/34
4,000,000 Harbor Department of the City of Los Angeles, Revenue Bonds, 8/02 at 102 AA 4,399,760
Issue of 1995 Series B, 6.625%, 8/01/19 (Alternative Minimum Tax)
5,000,000 County of Sacramento, Airport System Revenue Bonds, 7/06 at 102 AAA 5,399,300
Series 1996, 5.900%, 7/01/24 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. Guaranteed - 33.0%
1,900,000 California Health Facilities Financing Authority, Insured Hospital 10/00 at 102 AAA 2,066,022
Revenue Bonds (Children's Hospital of San Francisco), 1990 Series A,
7.500%, 10/01/20 (Pre-refunded to 10/01/00)
5,000,000 California Health Facilities Financing Authority, Health Facility 5/00 at 102 Aaa 5,352,800
Revenue Bond (Health Dimensions, Incorporated), 1990 Series A,
7.500%, 5/01/15 (Pre-refunded to 5/01/00)
4,650,000 California State Department of Water Resources, Central Valley 6/99 at 101 1/2 Aaa 4,771,970
Project, Water System Revenue Bonds, Series G,
7.125%, 12/01/24 (Pre-refunded to 6/01/99)
3,000,000 California Statewide Communities Development Authority No Opt. Call A+*** 3,341,310
(Triad Healthcare), Revenue Refunding, Series 1992,
Certificates of Participation, 6.250%, 8/01/06
5,000,000 Certificates of Participation (Water System Improvement Projects), 8/00 at 102 AAA 5,379,300
Series 1990, Castaic Lake Water Agency, California,
7.125%, 8/01/16 (Pre-refunded to 8/01/00)
3,300,000 Contra Costa Water Authority (Contra Costa County, California), 10/00 at 102 N/R*** 3,552,120
Water Treatment Revenue Bonds, 1990 Series A,
6.875%, 10/01/20 (Pre-refunded to 10/01/00)
5,000,000 Hospital Revenue Certificates of Participation (Desert 7/00 at 102 AAA 5,426,750
Hospital Corporation Project), Series 1990, 8.100%, 7/01/20
(Pre-refunded to 7/01/00)
5,000,000 The City of Los Angeles (California), Los Angeles Convention and 8/00 at 102 AAA 5,378,250
Exhibition Center, Certificates of Participation, 1990 Series,
7.000%, 8/15/21 (Pre-refunded to 8/15/00)
4,000,000 Certificates of Participation (1990 Project A), Orange County 8/00 at 102 AAA 4,302,600
Water District, 7.000%, 8/15/15 (Pre-refunded to 8/15/00)
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-*** 4,398,069
2,000,000 7.875%, 10/01/15 (Pre-refunded to 10/01/00) 10/00 at 102 A-*** 2,185,360
4,000,000 City of Pomona, California, Single Family Mortgage Revenue Refunding No Opt. Call AAA 5,242,600
Bonds (GNMA and FHLMC Mortgage-Backed Securities), Series 1990B,
7.500%, 8/01/23
2,445,000 San Bernardino County, California, Certificates of Participation, 8/05 at 102 AAA 2,722,190
Series 1995 (Medical Center Financing Project), 5.500%, 8/01/22
(Pre-refunded to 8/01/05)
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
U.S. Guaranteed (continued)
$ 2,000,000 Sierra View Local Hospital District, Insured Health Facility Revenue 3/02 at 102 A+*** $ 2,200,440
Bonds, Series 1992, 6.400%, 3/01/22 (Pre-refunded to 3/01/02)
4,620,000 Vista Joint Powers Financing Authority, 1993 Series B, Lease Revenue 9/00 at 101 A-*** 4,867,632
Bonds (Hacienda Drive and Buena Vista Creek), 6.100%, 9/01/20
(Pre-refunded to 9/01/00)
- ------------------------------------------------------------------------------------------------------------------------------------
Utilities - 8.5%
6,750,000 California Pollution Control Financing Authority, Solid Waste Disposal 7/07 at 102 N/R 6,952,635
Revenue Bonds (CanFibre of Riverside Project), Tax-Exempt
Series 1997A, 9.000%, 7/01/19 (Alternative Minimum Tax)
8,000,000 City of Chula Vista, Industrial Development Revenue Bonds 12/02 at 102 AAA 8,791,599
(San Diego Gas and Electric Company), 1992 Series A,
6.400%, 12/01/27 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Water and Sewer - 6.4%
4,000,000 The City of Los Angeles, California, Wastewater System 11/03 at 102 AAA 3,833,719
Revenue Bonds, Series 1993-D, 4.700%, 11/01/19
10,000,000 City of Santa Maria, California, Water and Wastewater Revenue, 8/12 at 101 AAA 7,965,899
Subordinate Certificates of Participation, Series 1997A,
0.000%, 8/01/27
- ------------------------------------------------------------------------------------------------------------------------------------
$ 171,655,000 Total Investments - (cost $165,458,291) - 99.0% 183,056,363
=============
Other Assets Less Liabilities - 1.0% 1,942,072
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $184,998,435
====================================================================================================================
* Optional Call Provisions: Dates (month and year) and prices of the
earliest optional call or redemption. There may be other call
provisions at varying prices at later dates.
** Ratings: 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 Investment Quality Municipal Fund, Inc. (NQC) (continued)
February 28, 1999
(Unaudited)
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Capital Goods - 1.9%
$ 5,500,000 California Pollution Control Financing Authority, Fixed Rate Resource 2/01 at 103 BBB+ $ 5,867,950
Recovery Revenue Bonds (Waste Management, Inc.), 1991 Composite
Series A, 7.150%, 2/01/11 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Education and Civic Organizations - 4.4%
1,235,000 California Educational Facilities Authority, Revenue Bonds 1/01 at 102 Baa2 1,333,528
(Chapman College), Series 1991, 7.300%, 1/01/02
1,500,000 California Educational Facilities Authority, Revenue Bonds (University 10/06 at 102 AAA 1,645,890
of San Francisco), Series 1996, 6.000%, 10/01/26
4,000,000 State Public Works Board of the State of California, Lease Revenue 3/06 at 102 AAA 4,246,640
Refunding Bonds (California Community Colleges), 1996 Series B
(Various Community Colleges Projects), 5.625%, 3/01/19
6,000,000 State Public Works Board of the State of California, Lease Revenue 10/07 at 102 A 6,187,800
Bonds (Various California State University Projects),
1997 Series C, 5.400%, 10/01/22
- ------------------------------------------------------------------------------------------------------------------------------------
Health Care - 12.9%
10,000,000 California Health Facilities Financing Authority, Kaiser Permanente 12/00 at 102 A 10,852,700
Revenue Bonds, 1990 Series A, 7.000%, 12/01/10
1,475,000 California Health Facilities Financing Authority, Kaiser Permanente 3/01 at 102 A 1,548,352
Refunding Revenue Bonds, 1991 Series A, 6.250%, 3/01/21
Central Joint Powers Health Financing Authority, Certificates of
Participation, Series 1993 (Community Hospital of Central
California):
3,250,000 5.250%, 2/01/13 2/03 at 102 Baa1 3,275,708
7,260,000 5.500%, 2/01/15 2/03 at 102 Baa1 7,281,490
5,000,000 City of Loma Linda, California, Hospital Revenue Bonds (Loma Linda 12/03 at 102 BBB 5,333,650
University Medical Center Project), Series 1993-A, 6.500%, 12/01/18
1,805,000 Sierra View Local Health Care District (Tulare County, California), 7/08 at 101 A 1,823,682
Refunding Revenue Bonds, Series 1998, 5.100%, 7/01/12
1,000,000 City of Stockton, California, Health Facility Revenue Bonds, Dameron 12/07 at 102 BBB+ 1,018,430
Hospital Association, 1997 Series A, 5.700%, 12/01/14
4,455,000 Tulare Local Health Care District (California), Insured Health Facility 12/07 at 102 A+ 4,439,898
Revenue Bonds, Series 1998, 5.200%, 12/01/21
3,365,000 West Side Hospital District (Kern County, California), Insured 2/01 at 102 A+ 3,608,996
Revenue Bonds, Series 1991A, 7.500%, 2/01/23
- ------------------------------------------------------------------------------------------------------------------------------------
Housing/Multifamily - 2.9%
6,250,000 California Statewide Communities Development Authority, Apartment 7/08 at 101 BBB 6,318,813
Development Revenue Refunding Bonds (Irvine Apartment
Communities, L.P.), Series 1998A, 5.250%, 5/15/25
2,430,000 City of Stanton, Multifamily Housing Revenue Bonds (Continental 8/07 at 102 AAA 2,592,907
Gardens Apartments), Series 1997, 5.625%, 8/01/29
(Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Housing/Single Family - 1.4%
1,075,000 California Housing Finance Agency, Home Mortgage Revenue Bonds, 8/99 at 101 Aa 1,098,059
1988 Series C, 8.300%, 8/01/19 (Alternative Minimum Tax)
1,720,000 Southern California Home Financing Authority, Single Family Mortgage 4/99 at 103 AAA 1,773,784
Revenue Bonds (GNMA Mortgage-Backed Securities Program),
1989 Issue A, 7.625%, 10/01/22 (Alternative Minimum Tax)
1,430,000 Southern California Home Financing Authority, Single Family Mortgage 3/01 at 102 AAA 1,501,486
Revenue Bonds (GNMA and FNMA Mortgage-Backed Securities
Program), 1991 Issue A, 7.350%, 9/01/24
(Alternative Minimum Tax)
<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, General Obligation Bonds, 5.125%, 10/01/27 10/07 at 101 Aa3 $ 3,309,768
2,395,000 Fontana Unified School District, San Bernardino County, California, 5/09 at 102 AAA 2,517,241
1997 General Obligation Refunding Bonds, Series A, 0.000%, 5/01/17
2,000,000 Pomona Unified School District, General Obligation Refunding Bonds, 8/11 at 103 AAA 2,339,400
Series 1997-A, 6.500%, 8/01/19
- ------------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited - 20.6%
7,000,000 Certificates of Participation (1990 Adelanto Return to Custody Facility), 4/00 at 102 BBB+ 7,394,800
City of Adelanto, California, 7.100%, 4/01/10
2,195,000 Bell Community Redevelopment Agency, Bell Redevelopment Project Area, 11/03 at 102 AAA 2,453,373
1994 Tax Allocation Refunding Bonds, 6.300%, 11/01/13
1,500,000 City of Irvine, Mobile Home Park Revenue Bonds (Meadows 3/08 at 102 N/R 1,512,195
Mobile Home Park Project), Series 1998A, 5.700%, 3/01/28
5,500,000 Kern County Board of Education, California, Refunding Certificates of 5/08 at 102 AAA 5,590,585
Participation, 1998 Series A, 5.200%, 5/01/28
1,000,000 Los Angeles County Metropolitan Transportation Authority (California), 7/08 at 101 AAA 995,050
Proposition C Sales Tax Revenue Refunding Bonds, Second Senior Bonds,
Series 1998-A, 5.000%, 7/01/23
1,685,000 City of Ontario, Community Facilities District No. 5 (Freeway Interchange 9/06 at 102 N/R 1,767,498
Project), Special Tax Bonds, Series 1997, 6.375%, 9/01/17
3,600,000 Ontario Redevelopment Financing Authority (San Bernardino County, No Opt. Call AAA 4,908,924
California), 1995 Revenue Refunding Bonds (Ontario Redevelopment
Project No.1), 7.400%, 8/01/25
10,075,000 County of Orange, California, 1996 Recovery Certificates of 7/06 at 102 AAA 11,033,233
Participation, Series A, 6.000%, 7/01/26
1,780,000 Palm Desert Financing Authority, Tax Allocation Revenue Bonds 10/02 at 103 AAA 1,802,873
(Project Area No. 4), Series 1998, 4.750%, 10/01/13
2,000,000 Redding Joint Powers Financing Authority, Solid Waste and Corporate 1/04 at 102 A3 2,088,460
Yard, Lease Revenue Bonds, Series 1993A, 5.500%, 1/01/13
1,500,000 City of Richmond, Limited Obligation Refunding Improvement Bonds, 3/99 at 103 N/R 1,552,050
Reassessment District No. 855 (Atlas Road West and Interchange),
6.600%, 9/02/19
1,200,000 City of San Diego, California, Convention Center Expansion 10/08 at 101 AAA 1,153,320
Financing Authority, Lease Revenue Bonds, Series 1998A,
4.750%, 4/01/28
9,000,000 Redevelopment Agency of the City of San Jose (California), 2/04 at 102 AAA 8,634,060
Merged Area Redevelopment Project, Tax Allocation Bonds,
Series 1993, 4.750%, 8/01/24
8,000,000 Redevelopment Agency of the City of San Jose (California), 8/08 at 102 A 8,057,840
Merged Area Redevelopment Project, Tax Allocation Bonds,
Series 1998, 5.250%, 8/01/29
1,000,000 Redevelopment Agency of the City of San Jose (California), 8/08 at 101 AAA 960,340
Merged Area Redevelopment Project, Tax Allocation Bonds,
Series 1999, 4.750%, 8/01/29
2,000,000 Redevelopment Agency of the City of San Leandro, Plaza 1 6/03 at 102 A- 2,119,640
and Plaza 2 Redevelopment Projects, 1993 Tax Allocation Bonds,
Series A, 6.125%, 6/01/23
- ------------------------------------------------------------------------------------------------------------------------------------
Transportation - 6.0%
1,000,000 Foothill/Eastern Transportation Corridor Agency (California), Toll Road 1/05 at 102 BBB- 1,069,020
Revenue Bonds, Series 1995A, 6.000%, 1/01/34
12,000,000 Airports Commission, City and County of San Francisco, California, 5/05 at 101 AAA 13,249,920
San Francisco International Airport, Second Series Revenue Bonds,
Issue 11 (Noise Insulation Program), 6.250%, 5/01/26
(Alternative Minimum Tax)
3,520,000 Airports Commission, City and County of San Francisco, California, 5/06 at 101 AAA 3,791,638
San Francisco International Airport, Second Revenue Bonds,
Issue 12A, 5.625%, 5/01/11 (Alternative Minimum Tax)
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
U.S. Guaranteed - 35.2%
$ 5,885,000 Calaveras County Water District (California), Certificates of 5/01 at 102 AAA $ 6,447,606
Participation (1991 Ebbetts Pass Water System Improvements
Project), 6.900%, 5/01/16 (Pre-refunded to 5/01/01)
California Health Facilities Financing Authority, Health Facility
Revenue Bonds (Health Dimensions,
Incorporated), 1990 Series A:
2,300,000 7.500%, 5/01/15 (Pre-refunded to 5/01/00) 5/00 at 102 Aaa 2,462,288
4,395,000 7.000%, 5/01/20 (Pre-refunded to 5/01/00) 5/00 at 102 Aaa 4,680,367
8,075,000 California Health Facilities Financing Authority, Hospital Revenue 11/00 at 102 A1*** 8,739,411
Refunding Bonds (Cedars-Sinai Medical Center), Series 1990,
7.000%, 11/01/15 (Pre-refunded to 11/01/00)
12,830,000 State of California, Various Purpose General Obligation Bonds, 3/05 at 101 Aa3*** 14,284,281
5.750%, 3/01/13 (Pre-refunded to 3/01/05)
3,500,000 State Public Works Board of the State of California, Lease 11/04 at 102 Aaa 4,136,090
Revenue Bonds (Department of Corrections), 1994 Series A
(California State Prison-Monterey County (Soledad II)),
6.875%, 11/01/14 (Pre-refunded to 11/01/04)
3,000,000 California Statewide Communities Development Authority No Opt. Call A+*** 3,341,310
(Triad Healthcare), Revenue Refunding, Series 1992, Certificates
of Participation, 6.250%, 8/01/06
5,500,000 Certificates of Participation (Open Space Acquisition Project), 4/01 at 102 N/R*** 6,019,475
City of Cupertino, California, Cupertino Public Facilities Corporation,
7.125%, 4/01/16 (Pre-refunded to 4/01/01)
4,500,000 Hospital Revenue Certificates of Participation (Desert Hospital 7/00 at 102 AAA 4,878,270
Corporation Project), Series 1990,
8.000%, 7/01/10 (Pre-refunded to 7/01/00)
8,650,000 Fontana Public Financing Authority (San Bernardino County, 12/01 at 102 N/R*** 9,802,613
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)
2,750,000 Certificates of Participation, Fresno Unified School District, 5/01 at 102 A2*** 3,025,330
Fresno County, California, Series of 1991A For Project Phase VI,
7.200%, 5/01/11 (Pre-refunded to 5/01/01)
1,050,000 Certificates of Participation, Fresno Unified School District, 5/00 at 102 A2*** 1,112,969
Fresno County, California, Series of 1992B for Project Phase IX,
6.600%, 5/01/07 (Pre-refunded to 5/01/00)
2,500,000 The Community Redevelopment Agency of the City of Los Angeles, 7/00 at 100 BBB*** 2,585,325
California, Central Business District Redevelopment Project,
Tax Allocation Refunding Bonds, Series G, 6.750%, 7/01/10
5,500,000 Los Angeles County Metropolitan Transportation Authority 7/01 at 102 Aaa 6,037,955
(California), Proposition A Sales Tax Revenue Refunding Bonds,
Series 1993-A, 6.750%, 7/01/20 (Pre-refunded to 7/01/01)
8,000,000 Mt. Diablo Hospital District, Insured Hospital Revenue Bonds, 12/00 at 102 AAA 8,821,280
1990 Series A, 8.000%, 12/01/11 (Pre-refunded to 12/01/00)
8,000,000 Redevelopment Agency of the City of Pittsburg, California, 8/01 at 103 AAA 8,950,960
Los Medanos Community Development Project, Tax Allocation Bonds,
Series 1991, 7.150%, 8/01/21 (Pre-refunded to 8/01/01)
6,505,000 Poway Redevelopment Agency, California, City of Poway 1/01 at 102 AAA 7,088,824
1991 Capital Improvement Project, Certificates of Participation
(Poway Royal Mobile Home Park), 7.200%, 1/01/24 (Pre-refunded to 1/01/01)
3,500,000 West Contra Costa Hospital District, Insured Health Facility 11/04 at 102 N/R*** 4,041,870
Refunding Revenue Bonds, Series 1994,
6.500%, 11/01/17 (Pre-refunded to 11/01/04)
- ------------------------------------------------------------------------------------------------------------------------------------
Utilities - 6.3%
750,000 Anaheim Public Financing Authority (California), Revenue Bonds, 10/08 at 101 AAA 746,288
Series 1998 (City of Anaheim Electric System Distribution Facilities),
5.000%, 10/01/23
7,945,000 City of Chula Vista, Industrial Development Revenue Bonds 12/02 at 102 AAA 8,731,158
(San Diego Gas and Electric Company), 1992 Series A,
6.400%, 12/01/27 (Alternative Minimum Tax)
7,990,000 Department of Water and Power of the City of Los Angeles, 1/01 at 102 Aa3 8,691,841
California, Electric Plant Revenue Bonds, Issue of 1991, 7.100%, 1/15/31
1,000,000 City of Pasadena, California, Electric Revenue Refunding Bonds, 8/08 at 101 AAA 963,509
1998 Series, 4.750%, 8/01/24
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Water and Sewer - 4.5%
$ 4,075,000 State of California Department of Water Resources, Central Valley 12/06 at 101 1/2 AAA $ 4,215,872
Project, Water System Revenue Bonds, Series Q, 5.375%, 12/01/27
5,500,000 Revenue Certificates of Participation, Series 1993A, Orange County 8/03 at 100 AA 5,442,524
Water District, 5.000%, 8/15/18
4,025,000 City of Stockton (California), Certificates of Participation, 9/08 at 102 AAA 4,093,022
1998 Series A (Wastewater System Project), 5.200%, 9/01/29
- ------------------------------------------------------------------------------------------------------------------------------------
$ 279,725,000 Total Investments - (cost $273,470,805) - 98.8% 299,391,429
=============
Other Assets Less Liabilities - 1.2% 3,504,617
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $302,896,046
====================================================================================================================
* Optional Call Provisions: Dates (month and year) and prices of the
earliest optional call or redemption. There may be other call
provisions at varying prices at later dates.
** Ratings: 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 Select Quality Municipal Fund, Inc. (NVC)
February 28, 1999
(Unaudited)
<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 12/06 at 101 A+ $ 9,681,249
Waste Disposal Facilities Revenue Bonds (Anheuser-Busch Project),
Series 1996, 5.750%, 12/01/30 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Education and Civic Organizations - 2.1%
5,000,000 California Educational Facilities Authority, Revenue Bonds 10/06 at 102 AAA 4,955,950
(Chapman University), Series 1996, 5.125%, 10/01/26
6,000,000 The Regents of the University of California, Refunding Revenue 9/03 at 102 AAA 5,945,520
Bonds (1989 Multiple Purpose Projects), Series C,
5.000%, 9/01/23
- ------------------------------------------------------------------------------------------------------------------------------------
Energy - 1.9%
9,500,000 California Pollution Control Financing Authority, Exempt Facilities 12/06 at 102 AA 9,777,590
Revenue Bonds, Series 1996 (Mobil Oil Corporation Project),
5.500%, 12/01/29 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Health Care - 8.6%
ABAG Finance Authority for Nonprofit Corporations (California),
Insured Certificates of Participation (Tarzana Treatment Center,
Inc.):
495,000 4.450%, 12/01/08 12/06 at 102 A+ 496,490
1,455,000 5.200%, 12/01/23 12/06 at 102 A+ 1,439,883
3,000,000 California Health Facilities Financing Authority, Insured Health 7/04 at 102 AAA 2,877,000
Facility Refunding Revenue Bonds (Catholic Healthcare West),
1994 Series A, 4.750%, 7/01/19
5,000,000 California Health Facilities Financing Authority, Insured Health 8/01 at 102 A 5,418,350
Facility Revenue Bonds (The H.E.L.P. Group), 1991 Series A,
7.000%, 8/01/21
7,485,000 California Health Facilities Financing Authority, Kaiser 3/01 at 102 A 7,970,477
Permanent Refunding Revenue Bonds, 1991 Series A,
6.500%, 3/01/11
1,775,000 California Statewide Communities Development Authority, 7/03 at 102 AA 1,812,470
Certificates of Participation, St. Joseph Health System Obligated
Group, 5.500%, 7/01/23
6,500,000 City of Loma Linda, California, Hospital Revenue Refunding Bonds 12/99 at 102 AAA 6,811,155
(Loma Linda University Medical Center Project),
Series 1989-B, 7.000%, 12/01/15
9,350,000 City of Loma Linda, California, Hospital Revenue Refunding 12/03 at 102 AAA 9,534,943
Bonds (Loma Linda University Medical Center Project),
Series 1993-C, 5.375%, 12/01/22
6,000,000 County of Madera, California, Certificates of Participation 3/05 at 102 AAA 6,434,400
(Valley Children's Hospital Project), Series 1995,
5.750%, 3/15/28
1,050,000 City of Stockton, California, Health Facility Revenue Bonds, 12/07 at 102 BBB+ 1,092,693
Dameron Hospital Association, 1997 Series A, 5.450%, 12/01/10
- ------------------------------------------------------------------------------------------------------------------------------------
Housing/Multifamily - 2.6%
3,455,000 California Housing Finance Agency, Housing Revenue Bonds 8/01 at 102 AAA 3,683,963
(Insured), 1991 Series A, 7.200%, 2/01/26 (Alternative Minimum Tax)
9,250,000 California Statewide Communities Development Authority, 7/08 at 101 BBB 9,351,843
Apartment Development Revenue Refunding Bonds (Irvine
Apartment Communities, L.P.), Series 1998A, 5.250%, 5/15/25
- ------------------------------------------------------------------------------------------------------------------------------------
Housing/Single Family - 9.3%
6,230,000 California Housing Finance Agency, Single Family Mortgage Bonds, 5/05 at 102 Aaa 6,659,122
1995 Issue A-2, 6.350%, 8/01/15 (Alternative Minimum Tax)
California Housing Finance Agency, Single Family Mortgage Bonds,
1995 Issue B:
1,805,000 6.250%, 8/01/14 (Alternative Minimum Tax) 10/05 at 102 AAA 1,898,282
8,470,000 6.250%, 2/01/18 (Alternative Minimum Tax) 10/05 at 102 AAA 9,049,517
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Housing/Single Family (continued)
$ 2,545,000 California Housing Finance Agency, Home Mortgage Revenue Bonds, 8/01 at 102 AA- $ 2,680,470
1991 Series G, 7.050%, 8/01/27 (Alternative Minimum Tax)
3,150,000 California Housing Finance Agency, Home Mortgage Revenue Bonds, 2/00 at 102 Aa2 3,262,266
1989 Series F, 7.250%, 8/01/17
5,970,000 California Housing Finance Agency, Home Mortgage Revenue Bonds, 2/06 at 102 AAA 6,348,856
1995 Series M, 6.150%, 8/01/27 (Alternative Minimum Tax)
5,900,000 California Housing Finance Agency, Home Mortgage Revenue Bonds, 8/06 at 102 Aa2 6,311,525
1996 Series H, 6.250%, 8/01/27 (Alternative Minimum Tax)
1,750,000 California Housing Finance Agency, Home Mortgage Revenue Bonds, 2/09 at 101 1/2 AAA 1,776,303
1998 Series E Remarketed, 5.250%, 2/01/33 (Alternative Minimum Tax)
2,420,000 California Rural Home Mortgage Finance Authority, Single Family No Opt. Call AAA 2,693,581
Mortgage Revenue Bonds (Mortgage-Backed Securities Program),
1995 Series B, 7.750%, 9/01/26 (Alternative Minimum Tax)
3,860,000 Puerto Rico Housing Bank and Finance Agency, Affordable Housing 4/05 at 102 AAA 4,072,416
Mortgage Subsidy Program, Single Family Mortgage Revenue
Bonds, Portfolio I, 6.250%, 4/01/29 (Alternative Minimum Tax)
2,680,000 Southern California Home Financing Authority, Single Family 10/01 at 102 AAA 2,817,350
Mortgage Revenue Bonds (GNMA and FNMA), Mortgage-Backed
Securities Program, 1991 Issue B, 6.900%, 10/01/24
(Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Long-Term Care - 1.2%
3,000,000 California Statewide Communities Development Authority, 4/03 at 102 A+ 3,193,830
Series A, Certificates of Participation, Pacific Homes, 6.000%, 4/01/17
2,800,000 The City of Los Angeles, Insured Certificates of Participation, 6/01 at 102 A+ 3,040,632
Ararat Home of Los Angeles, 7.250%, 6/01/21
- ------------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/General - 4.0%
11,405,000 State of California, Various Purpose General Obligation Bonds, 6 3/99 at 101 Aa3 11,552,467
.400%, 2/01/20 (Alternative Minimum Tax)
8,665,000 State of California, Veterans General Obligation Bonds, 12/03 at 102 Aa3 8,914,465
Series BH, 5.600%, 12/01/32 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited - 16.2%
10,000,000 Anaheim Public Financing Authority, Lease Revenue Bonds (Anaheim No Opt. Call AAA 1,839,900
Public Improvements Project), Senior Lease Revenue Bonds,
1997 Series C, 0.000%, 9/01/31
9,725,000 Avalon Community Improvement Agency, Community Improvement 8/01 at 102 A- 10,737,664
Project, Area Tax Allocation Bonds, Series 1991 A, 7.250%, 8/01/21
2,215,000 Brea Public Financing Authority (Orange County, California), 8/01 at 102 AAA 2,411,914
1991 Tax Allocation Revenue Bonds, Series A (Redevelopment
Project AB), 6.750%, 8/01/22
7,500,000 State Public Works Board of the State of California, Lease Revenue 9/08 at 101 AAA 7,464,825
Refunding Bonds (Department of Corrections), 1998 Series B
(California State Prisons Imperial County), 5.000%, 9/01/21
6,000,000 Cerritos Public Financing Authority (Cerritos, California), 11/03 at 102 A- 6,355,320
1993 Revenue Bonds, Series A (Tax Exempt) (Los Cerritos
Redevelopment Project Loan), 6.050%, 11/01/20
5,000,000 Culver City Redevelopment Financing Authority, 1993 Tax 11/03 at 102 AAA 4,954,150
Allocation Refunding Revenue Bonds, 5.000%, 11/01/23
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- 5,898,127
5,000,000 7.000%, 8/01/19 8/01 at 102 BBB- 5,341,400
3,000,000 6.500%, 8/01/21 8/01 at 102 BBB- 3,161,580
3,510,000 Long Beach Bond Finance Authority, Lease Revenue and Refunding 10/07 at 102 AAA 3,491,327
Bonds (Civic Center Project), 1997 Series A, 5.000%, 10/01/27
2,255,000 Los Angeles Unified School District, Certificates of Participation No Opt. Call A 2,271,281
(Capital Facilities Project), Series 1991A, 7.000%, 5/01/99
7,500,000 Los Angeles County Metropolitan Transportation Authority (California), 7/08 at 101 AAA 7,462,875
Proposition C Sales Tax Revenue Refunding Bonds, Second
Senior Bonds, Series 1998-A, 5.000%, 7/01/23
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Tax Obligation/Limited (continued)
$ 3,605,000 Oakland State Building Authority, Lease Revenue Bonds 4/08 at 101 AAA $ 3,587,336
(Elihu M. Harris State Office Building), 1998 Series A, 5.000%, 4/01/23
1,390,000 City of Palm Springs Financing Authority, Tax Allocation Bonds, 8/01 at 102 A- 1,480,920
1991 Series B (Agency Loans), 6.800%, 8/01/11
2,195,000 Pleasanton Joint Powers Financing Authority, Reassessment Revenue 9/03 at 102 Baa1 2,357,342
Bonds, 1993 Series A, 6.150%, 9/02/12
2,550,000 Riverside Public Financing Authority (Riverside County, California), 2/01 at 102 N/R 2,718,530
1991 Revenue Bonds, Series A (Multiple Project Loans),
8.000%, 2/01/18
5,235,000 City and County of San Francisco, Redevelopment Financing Authority, 8/03 at 103 A 5,241,230
1993 Series C, Tax Allocation Revenue Bonds (San Francisco
Redevelopment Projects), 5.125%, 8/01/18
750,000 Redevelopment Agency of the City of San Jose (California), 8/08 at 101 AAA 720,255
Merged Area Redevelopment Project, Tax Allocation Bonds,
Series 1999, 4.750%, 8/01/29
5,000,000 City of West Hollywood (Los Angeles County, California), 2/08 at 102 AAA 4,974,650
1998 Refunding Certificates of Participation, City of West Hollywood
Public Facilities Corporation, 5.000%, 2/01/25
- ------------------------------------------------------------------------------------------------------------------------------------
Transportation - 3.4%
3,275,000 California Statewide Communities Development Authority, Special 10/07 at 102 Baa3 3,363,949
Facilities Lease Revenue Bonds, 1997 Series A, 5.700%, 10/01/33
(Alternative Minimum Tax)
2,000,000 California Statewide Communities Development Authority, Special 10/07 at 102 Baa3 2,047,180
Facilities Lease Revenue Bonds, 1997 Series A (United Air Lines,
Inc.- San Francisco International Airport Projects),
5.625%, 10/01/34 (Alternative Minimum Tax)
7,500,000 Harbor Department of the City of Los Angeles, Revenue Bonds, 8/06 at 101 AAA 8,258,925
Issue of 1996, 6.200%, 8/01/25 (Alternative Minimum Tax)
3,450,000 Airport Commission, City and County of San Francisco, California, 5/04 at 102 AAA 3,832,916
San Francisco International Airport, Second Series Revenue Bonds,
Issue 5, 6.500%, 5/01/24 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. Guaranteed - 33.8%
5,120,000 ABAG Finance Authority for Nonprofit Corporations, Certificates 11/03 at 102 AAA 5,463,347
of Participation (Stanford University Hospital), California,
Series 1993, 5.250%, 11/01/08
5,285,000 Brea Public Financing Authority (Orange County, California), 8/01 at 102 AAA 5,816,090
1991 Tax Allocation Revenue Bonds, Series A (Redevelopment
Project AB), 6.750%, 8/01/22 (Pre-refunded to 8/01/01)
10,500,000 California Health Facilities Financing Authority, Health Facility 1/00 at 101 1/2 N/R*** 11,001,270
Revenue Bonds (Pomona Valley Hospital Medical Center),
1989 Series A, 7.000%, 1/01/18 (Pre-refunded to 1/01/00)
3,000,000 California Pollution Control Financing Authority, Solid Waste 7/02 at 102 Aaa 3,366,150
Revenue Bonds (North County Recycling Center),
1991 Series A Bonds, 6.750%, 7/01/17
1,875,000 State of California, Various Purpose General Obligation Bonds, 3/04 at 102 Aa3*** 2,083,819
5.750%, 3/01/23 (Pre-refunded to 3/01/04)
3,310,000 State Public Works Board of the State of California, Lease 9/01 at 102 Aaa 3,690,286
Revenue Bonds (California Community Colleges), 1991 Series A,
7.250%, 9/01/05 (Pre-refunded to 9/01/01)
10,525,000 State Public Works Board of the State of California, Lease 9/01 at 100 A1*** 11,156,500
Revenue Bonds (Department of Corrections), Series 1991A
(State Prisons-Imperial County), 5.750%, 9/01/21
(Pre-refunded to 9/01/01)
5,000,000 State Public Works Board of the State of California, Lease 9/05 at 100 A*** 5,637,100
Revenue Bonds (The Trustees of The California State University),
1995 Series A (Various California State University Projects),
6.000%, 9/01/15 (Pre-refunded to 9/01/05)
2,110,000 County of Contra Costa, California, 1989 Home Mortgage Revenue No Opt. Call AAA 2,628,195
Bonds (GNMA Mortgage-Backed Securities Program),
7.700%, 11/01/09 (Alternative Minimum Tax)
7,000,000 East Bay Municipal Utility District (Alameda and Contra Costa 12/01 at 102 AAA 7,708,260
Counties, California), Water System Subordinated Revenue Bonds,
Series 1991, 6.375%, 6/01/12 (Pre-refunded to 12/01/01)
10,000,000 Los Angeles County Public Works Finance Authority, 10/04 at 102 AA*** 11,334,800
Revenue Bonds, Series 1994A (Los Angeles County Regional Park
and Open Space District), 6.000%, 10/01/15 (Pre-refunded to 10/01/04)
<PAGE>
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
U.S. Guaranteed (continued)
$ 7,500,000 Los Angeles County Metropolitan Transportation Authority (California), 7/01 at 102 Aaa $ 8,258,775
Proposition A Sales Tax Revenue Refunding Bonds, Series 1993-A,
6.900%, 7/01/21 (Pre-refunded to 7/01/01)
6,375,000 Mt. Diablo Hospital District, Insured Hospital Revenue Bonds, 12/00 at 102 AAA 6,922,039
1990 Series A, 7.000%, 12/01/17 (Pre-refunded to 12/01/00)
1,705,000 City of Palm Springs Financing Authority, Revenue (Tax Allocation) 8/05 at 100 N/R*** 1,987,467
Bonds, 1991 Series B (Agency Loans), 6.800%, 8/01/11
(Pre-refunded to 8/01/05)
3,700,000 Riverside Public Financing Authority (Riverside County, California), 2/01 at 102 N/R*** 4,088,463
1991 Revenue Bonds, Series A (Multiple Project Loans),
8.000%, 2/01/18 (Pre-refunded to 2/01/01)
19,000,000 Sacramento City Financing Authority, 1991 Revenue Bonds, 11/01 at 102 Aaa 21,083,730
6.800%, 11/01/20 (Pre-refunded to 11/01/01)
3,920,000 City of San Diego, California, Certificates of Participation (Balboa 7/01 at 100 Aa*** 4,246,222
Park and Mission Bay Park Capital Improvements Program),
Series 1991, 6.900%, 7/15/21 (Pre-refunded to 7/15/01)
5,000,000 San Mateo County Joint Powers Financing Authority, Lease Revenue 7/04 at 102 AAA 5,688,800
Bonds (San Mateo County Health Center), 1994 Series A,
6.125%, 7/15/14 (Pre-refunded to 7/15/04)
4,000,000 County of Santa Clara, California, Certificates of Participation 3/01 at 102 N/R*** 4,349,760
(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)
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-*** 7,555,888
3,000,000 6.750%, 10/01/21 (Pre-refunded to 10/01/01) 10/01 at 102 A-*** 3,307,020
6,925,000 Santa Monica Community College District, Refunding Certificates 6/01 at 102 A*** 7,621,932
of Participation, 1991 Series A, 7.150%, 6/01/08
(Pre-refunded to 6/01/01)
6,500,000 Tri-City Hospital District (Oceanside, California), Insured Revenue 2/02 at 102 AAA 7,341,620
Bonds, Series 1991, 7.500%, 2/01/17 (Pre-refunded to 2/01/02)
10,000,000 Tustin Community Redevelopment Agency, Town Center Area 12/01 at 102 AAA 11,123,300
Redevelopment Project, Subordinate Tax Allocation Bonds,
Series 1991, 6.800%, 12/01/16 (Pre-refunded to 12/01/01)
3,300,000 The Regents of the University of California, Refunding Revenue 9/02 at 102 AA-*** 3,727,779
Bonds (Multiple Purpose Projects), Series A,
6.875%, 9/01/16 (Pre-refunded to 9/01/02)
3,000,000 Westminster Redevelopment Agency, Westminster Commercial 8/01 at 102 AAA 3,339,000
Redevelopment Project No. 1, 1991 Tax Allocation Bonds,
Series A (Orange County, California), 7.300%, 8/01/21
(Pre-refunded to 8/01/01)
1,535,000 Yosemite Community College District, Certificates of Participation, 7/01 at 102 N/R*** 1,669,727
7.750%, 7/01/11 (Pre-refunded to 7/01/01)
- ------------------------------------------------------------------------------------------------------------------------------------
Utilities - 8.7%
10,350,000 California Pollution Control Financing Authority, Pollution Control No Opt. Call AA- 12,490,277
Revenue Bonds (San Diego Gas and Electric Company), 1991 Series A,
6.800%, 6/01/15 (Alternative Minimum Tax)
9,650,000 California Pollution Control Financing Authority, Pollution Control 12/01 at 102 Aa3 10,549,959
Revenue Bonds (Southern California Edison Company),
1991 Series, 6.900%, 12/01/17 (Alternative Minimum Tax)
3,500,000 Department of Water and Power of the City of Los Angeles, 9/00 at 102 Aa3 3,771,040
California, Electric Plant Revenue Bonds, Second Issue of 1990,
7.250%, 9/15/30
6,375,000 Department of Water and Power of the City of Los Angeles, 1/01 at 102 Aa3 6,934,980
California, Electric Plant Revenue Bonds, Issue of 1991,
7.100%, 1/15/31
10,500,000 Southern California Public Power Authority, Transmission 7/03 at 100 AAA 10,406,445
Project Revenue Bonds, 1993 Subordinate Refunding Series
(Southern Transmission Project), 5.000%, 7/01/22
- ------------------------------------------------------------------------------------------------------------------------------------
Water and Sewer - 5.3%
7,500,000 Eastern Municipal Water District (California), Water and Sewer 7/08 at 101 AAA 7,464,525
Revenue Refunding Certificates of Participation, Series 1998A,
5.000%, 7/01/21
2,000,000 The City of Los Angeles, Wastewater System Revenue Bonds, 6/99 at 102 A+ 2,061,940
Refunding Series 1991-C, 7.100%, 6/01/18
10,135,000 The Metropolitan Water District of Southern California, Water Revenue No Opt. Call AA 13,118,136
Bonds, Issue of 1992, 8.000%, 7/01/08
3,000,000 The Metropolitan Water District of Southern California, Water Revenue 1/08 at 101 AA 2,952,000
Bonds, 1997 Authorization, Series A, 5.000%, 7/01/37
<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 $ 425,184
1,595,000 0.000%, 8/01/24 8/08 at 43 1/16 AAA 414,668
1,595,000 0.000%, 8/01/25 8/08 at 40 13/16 392,975
1,595,000 0.000%, 8/01/26 8/08 at 38 23/32 AAA 371,586
- ------------------------------------------------------------------------------------------------------------------------------------
$ 484,610,000 Total Investments - (cost $462,614,416) - 99.0% 505,079,708
=============
Other Assets Less Liabilities - 1.0% 5,171,520
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $510,251,228
====================================================================================================================
* Optional Call Provisions: Dates (month and year) and prices of the
earliest optional call or redemption. There may be other call
provisions at varying prices at later dates.
** Ratings: 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 Quality Income Municipal Fund, Inc. (NUC)
February 28, 1999
(Unaudited)
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Education and Civic Organizations - 1.5%
$ 2,000,000 California Educational Facilities Authority, Revenue Bonds (University 10/06 at 102 AAA $ 2,194,520
of San Francisco), Series 1996, 6.000%, 10/01/26
4,000,000 State Public Works Board of the State of California, Lease Revenue 3/06 at 102 AAA 4,246,640
Refunding Bonds (California Community Colleges), 1996 Series B
(Various Community Colleges Projects), 5.625%, 3/01/19
1,000,000 California Statewide Communities Development Authority, 4/06 at 101 AAA 1,085,770
Auxiliary Organization Revenue Certificates of Participation
(The University Corporation-California State University, Northridge),
Series 1996, 6.000%, 4/01/26
- ------------------------------------------------------------------------------------------------------------------------------------
Health Care - 5.8%
4,000,000 California Health Facilities Financing Authority, Insured Health 5/03 at 102 A+ 4,250,640
Facility Revenue Refunding Bonds (Valley Memorial Hospital),
1993A, 6.000%, 5/01/17
1,250,000 California Statewide Communities Development Authority, No Opt. Call A1 1,444,525
Hospital Revenue Certificates of Participation, Cedars-Sinai Medical
Center, Series 1992, 6.500%, 8/01/12
14,000,000 California Statewide Communities Development Authority, Revenue 8/02 at 102 A1 15,467,340
Certificates of Participation (Cedars-Sinai Medical Center),
6.500%, 8/01/15
3,110,000 City of Loma Linda, California, Hospital Revenue Bonds (Loma Linda 12/03 at 102 BBB 3,317,530
University Medical Center Project), Series 1993-A, 6.500%, 12/01/18
2,465,000 City of Sacramento, Insured Health Facility Revenue Bonds (CARES), 7/07 at 102 A+ 2,491,252
1998 Series A, 5.300%, 1/01/24
1,855,000 City of Torrance (California), Hospital Revenue Bonds (Little 7/02 at 102 A 2,083,740
Company of Mary Hospital Project), Series 1992, 6.875%, 7/01/15
- ------------------------------------------------------------------------------------------------------------------------------------
Housing/Multifamily - 4.6%
5,250,000 California Housing Finance Agency, Multi-Unit Rental Housing 8/02 at 102 Aa3 5,652,255
Revenue Bonds II, 1992 Series B, 6.700%, 8/01/15
2,500,000 California Statewide Communities Development Authority, No Opt. Call BBB 2,516,300
Apartment Development Revenue Refunding Bonds (Irvine
Apartment Communities, L.P.), Series 1998A, 5.050%, 5/15/25
(Alternative Minimum Tax)
3,900,000 City of Stanton, Multifamily Housing Revenue Bonds (Continental 8/07 at 102 AAA 4,161,456
Gardens Apartments), Series 1997, 5.625%, 8/01/29
(Alternative Minimum Tax)
8,000,000 City of Vista, Multifamily Housing Revenue Refunding Bonds 4/02 at 102 AAA 8,493,840
(Vista Hacienda Project), 1992 Series A, 6.950%, 4/01/17
Housing Authority of the County of Yolo, 1992 Refunding Revenue
Bonds, Series A (Russell Park Apartments):
1,000,000 6.900%, 11/01/08 5/02 at 103 Aa2 1,065,790
1,030,000 7.000%, 11/01/14 5/02 at 103 Aa2 1,100,102
- ------------------------------------------------------------------------------------------------------------------------------------
Housing/Single Family - 2.2%
1,545,000 California Housing Finance Agency, Home Mortgage Revenue 8/01 at 102 AA- 1,627,240
Bonds, 1991 Series G, 7.050%, 8/01/27 (Alternative Minimum Tax)
2,790,000 California Housing Finance Agency, Home Mortgage Revenue 2/05 at 102 Aa 3,015,795
Bonds, 1995 Series B, 7.125%, 2/01/26 (Alternative Minimum Tax)
600,000 City of Corona (California), Single Family Mortgage Revenue Bonds, 11/06 at 102 Aaa 615,714
Series 1996A (Senior), 6.050%, 5/01/27
2,690,000 County of Riverside, California, Single Family Mortgage Revenue 11/99 at 102 AAA 2,789,073
Bonds (GNMA Mortgage-Backed Securities Program), Issue B
of 1989, 7.600%, 11/01/19 (Alternative Minimum Tax)
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Housing/Single Family (continued)
Southern California Home Financing Authority, Single Family Mortgage
Revenue Bonds (GNMA and FNMA Mortgage-Backed Securities Program),
1991 Issue A:
$ 1,385,000 6.750%, 9/01/22 (Alternative Minimum Tax) 3/01 at 102 AAA $ 1,454,236
1,435,000 7.350%, 9/01/24 (Alternative Minimum Tax) 3/02 at 102 AAA 1,509,778
- ------------------------------------------------------------------------------------------------------------------------------------
Long-Term Care - 0.5%
2,465,000 California Health Facilities Financing Authority, Insured Health 8/08 at 100 A+ 2,509,863
Facility Revenue Bonds (Casa de las Campanas), 1998 Series A,
5.250%, 8/01/17
- ------------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/General - 3.8%
State of California, Various Purpose General Obligation Bonds:
10,000,000 6.400%, 9/01/07 No Opt. Call Aa3 11,658,400
2,500,000 7.000%, 2/01/09 No Opt. Call Aa3 3,051,000
295,000 5.750%, 3/01/19 3/05 at 101 Aa3 316,576
4,000,000 State of California, Veterans General Obligation Bonds, 12/03 at 101 Aa3 4,064,840
Series BN (Non-AMT), 5.450%, 12/01/28
- ------------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited - 22.6%
4,825,000 Certificates of Participation (1991 Financing Project), 9/06 at 102 AAA 5,307,259
County of Alameda, California, Alameda County Public
Facilities Corporation, 6.000%, 9/01/21
2,200,000 City of Coalinga, California, Certificates of Participation 4/00 at 102 BBB+ 2,317,304
(1989 Coalinga Return to Custody Facility), 7.000%, 4/01/10
Community Development Commission of the City of Commerce, Merged
Redevelopment Project, Tax Allocation Refunding Bonds, Series
1998A:
1,000,000 5.650%, 8/01/18 8/08 at 102 N/R 1,009,600
2,765,000 5.700%, 8/01/28 8/08 at 102 N/R 2,791,461
2,100,000 Cudahy Redevelopment Agency, Cudahy Redevelopment Project, 9/03 at 102 BBB 2,280,264
Tax Allocation Refunding Bonds, Series 1994A, 6.700%, 9/01/24
5,000,000 Culver City Redevelopment Financing Authority, 1993 Tax Allocation 11/03 at 102 AAA 4,720,950
Refunding Revenue Bonds, 4.600%, 11/01/20
3,000,000 Fontana Public Financing Authority (San Bernardino County, California), 9/00 at 102 BBB 3,161,670
Tax Allocation Revenue Bonds (North Fontana Redevelopment Project),
1990 Series A, 7.250%, 9/01/20
1,700,000 Foothill-De Anza Community College District (County of Santa Clara, 9/01 at 102 A- 1,872,584
California), Certificates of Participation (1992 De Anza Campus Center
Project), 7.350%, 3/01/07
2,725,000 City of Fresno, California, Certificates of Participation (1992 12/00 at 102 A1 2,961,285
Street Improvement Project), 6.625%, 12/01/11
4,000,000 Inland Empire Solid Waste Financing Authority, Revenue Bonds, No Opt. Call AAA 4,570,800
1996 Series B (Landfill Improvement Financing Project), 6.250%, 8/01/11
(Alternative Minimum Tax)
2,300,000 City of Irvine, Mobile Home Park Revenue Bonds (Meadows Mobile 3/08 at 102 N/R 2,326,243
Home Park Project), Series 1998A, 5.700%, 3/01/18
5,475,000 Community Facilities District No. 90-1 of the City of Lancaster, 9/07 at 102 AAA 5,531,940
1998 Special Tax Refunding Bonds, 4.900%, 9/01/15
5,435,000 Community Redevelopment Financing Authority of the Community 9/02 at 102 N/R 5,722,131
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
2,000,000 Redevelopment Agency of the City of Moorpark, Moorpark 10/03 at 102 A- 2,126,980
Redevelopment Project, 1993 Tax Allocation Bonds, 6.125%, 10/01/18
2,500,000 Certificates of Participation (Western Nevada County Solid Waste 6/01 at 102 BB 2,632,025
Management System - 1991 Project), County of Nevada,
California, 7.500%, 6/01/21
2,690,000 Oceanside Mobile Home Park Financing Authority (California), 3/08 at 102 N/R 2,726,907
Mobile Home Park Revenue Bonds (Laguna Vista Mobile Estates
Acquisition Project), Series 1998, 5.800%, 3/01/28
15,300,000 Ontario Redevelopment Financing Authority (San Bernardino No Opt. Call AAA 20,862,927
County, California), 1995 Revenue Refunding Bonds (Ontario
Redevelopment Project No.1), 7.400%, 8/01/25
3,400,000 Orange County Development Agency, Santa Ana Heights Project Area, 9/03 at 102 BBB 3,584,348
1993 Tax Allocation Revenue Bonds (California), 6.125%, 9/01/23
<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+ $ 3,389,580
2,250,000 6.000%, 2/15/08 No Opt. Call AA+ 2,559,960
2,000,000 County of Orange, California, 1996 Recovery Certificates of 7/06 at 102 AAA 2,190,220
Participation, Series A, 6.000%, 7/01/26
7,145,000 Palm Desert Financing Authority, Tax Allocation Revenue Bonds 10/07 at 102 AAA 7,258,177
(Project Area No. 4), Series 1998, 5.200%, 10/01/28
1,345,000 City of Rohnert Park, California, Certificates of Participation 7/99 at 102 AAA 1,338,208
(Rohnert Park Capital Facilities Project), 5.000%, 7/01/24
1,475,000 City of San Diego, California, Convention Center Expansion Financing 10/08 at 101 AAA 1,417,623
Authority, Lease Revenue Bonds, Series 1998A, 4.750%, 4/01/28
12,000,000 Redevelopment Agency of the City of San Jose (California), Merged 8/08 at 102 A 12,086,760
Area Redevelopment Project, Tax Allocation Bonds,
Series 1998, 5.250%, 8/01/29
3,000,000 Redevelopment Agency of the City of San Jose (California), Merged 8/08 at 101 AAA 2,881,020
Area Redevelopment Project, Tax Allocation Bonds, Series 1999,
4.750%, 8/01/29
3,000,000 City of Santa Barbara, California, Certificates of Participation 10/02 at 102 A 3,260,820
(Harbor Refunding Project), 6.750%, 10/01/27
1,000,000 Upland Community Redevelopment Agency, California, Upland 9/08 at 102 AAA 976,860
Redevelopment Project (A Merged Project), Tax Allocation
Refunding Bonds, Issue of 1998, 4.850%, 9/01/23
- ------------------------------------------------------------------------------------------------------------------------------------
Transportation - 3.2%
2,750,000 California Statewide Communities Development Authority, Special 10/07 at 102 Baa3 2,814,873
Facilities Lease Revenue Bonds, 1997 Series A (United Air Lines, Inc. -
San Francisco International Airport Projects),
5.625%, 10/01/34 (Alternative Minimum Tax)
12,500,000 Foothill/Eastern Transportation Corridor Agency (California), 1/05 at 102 BBB- 13,362,750
Toll Road Revenue Bonds, Series 1995A, 6.000%, 1/01/34
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. Guaranteed - 44.9%
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*** 8,795,901
10,000,000 6.000%, 6/01/22 (Pre-refunded to 6/01/02) 6/02 at 102 A*** 10,954,100
3,000,000 California Educational Facilities Authority, Revenue Bonds 2/02 at 102 A1*** 3,282,180
(Santa Clara University), Series 1991, 6.250%, 2/01/16
(Pre-refunded to 2/01/02)
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 A*** 2,196,870
5,000,000 6.500%, 10/01/22 (Pre-refunded to 10/01/02) 10/02 at 102 A*** 5,590,000
7,430,000 California Educational Facilities Authority, Revenue Bonds 10/02 at 102 Aaa 8,303,322
(University of San Francisco), Series 1992,
6.400%, 10/01/17 (Pre-refunded to 10/01/02)
3,680,000 California Health Facilities Financing Authority, Health Facility 5/00 at 102 Aaa 3,934,362
Revenue Bonds (Health Dimensions, Incorporated), 1990 Series A,
7.375%, 5/01/07 (Pre-refunded to 5/01/00)
3,225,000 California Health Facilities Financing Authority, Kaiser Permanente 12/00 at 102 A*** 3,472,519
Revenue Bonds, 1990 Series A, 6.500%, 12/01/20
(Pre-refunded to 12/01/00)
6,000,000 California Health Facilities Financing Authority, Insured Revenue 6/01 at 102 A+*** 6,552,780
Bonds (Southern California Presbyterian Homes), Series 1991,
6.750%, 6/01/21 (Pre-refunded to 6/01/01)
8,000,000 California Pollution Control Financing Authority, Solid Waste Revenue 7/02 at 102 Aaa 8,976,400
Bonds (North County Recycling Center), 1991 Series A Bonds,
6.750%, 7/01/17
7,690,000 State of California, Various Purpose General Obligation Bonds, 3/05 at 101 Aa3*** 8,561,662
5.750%, 3/01/19 (Pre-refunded to 3/01/05)
2,000,000 State of California Department of Water Resources, Central Valley 6/02 at 101 1/2 Aaa 2,208,980
Project, Water System Revenue Bonds, Series K,
6.400%, 12/01/26 (Pre-refunded to 6/01/02)
2,000,000 State Public Works Board of the State of California, Lease Revenue 9/01 at 102 Aaa 2,194,360
Bonds (Department of Corrections), Series 1991A (State Prisons-
Imperial County), 6.500%, 9/01/11 (Pre-refunded to 9/01/01)
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
U.S. Guaranteed (continued)
$ 10,050,000 State Public Works Board of the State of California, Lease Revenue 10/02 at 102 AAA $11,332,481
Bonds (The Trustees of the California State University), 1992 Series A
(Various California State University Projects),
6.700%, 10/01/17 (Pre-refunded to 10/01/02)
State Public Works Board of the State of California, Lease Revenue
Bonds (Department of Corrections), 1994 Series A (California State
Prison-Monterey County (Soledad II)):
6,950,000 6.875%, 11/01/14 (Pre-refunded to 11/01/04) 11/04 at 102 Aaa 8,213,093
7,625,000 7.000%, 11/01/19 (Pre-refunded to 11/01/04) 11/04 at 102 Aaa 9,059,263
3,570,000 California Statewide Communities Development Authority (Triad No Opt. Call A+*** 3,976,159
Healthcare), Revenue Refunding Series 1992, Certificates of
Participation, 6.250%, 8/01/06
2,000,000 Coachella Valley Water District, Improvement District No. 71 10/02 at 102 A*** 2,252,760
(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)
3,000,000 Contra Costa Water Authority (Contra Costa County, California), 10/00 at 102 N/R*** 3,229,200
Water Treatment Revenue Bonds, 1990 Series A, 6.875%, 10/01/20
(Pre-refunded to 10/01/00)
12,805,000 County of Contra Costa, California, 1988 Home Mortgage, Mortgage No Opt. Call AAA 17,848,761
Revenue Bonds (GNMA Mortgage-Backed Securities Program),
8.250%, 6/01/21 (Alternative Minimum Tax)
10,000,000 Fontana Redevelopment Agency, Jurupa Hills Redevelopment 10/02 at 102 BBB+*** 11,357,800
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)
5,000,000 Fresno Unified School District, Fresno County, California, Certificates 5/99 at 102 A3*** 5,136,600
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)
5,210,000 Fresno Unified School District, Fresno County, California, Certificates 5/00 at 102 A2*** 5,528,435
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)
8,000,000 Lancaster School District, Certificates of Participation (1992 3/02 at 105 AAA 9,174,160
Refunding Project), 7.000%, 3/01/22 (Pre-refunded to 3/01/02)
4,500,000 City of Los Angeles, California, Wastewater System Revenue 12/00 at 102 AAA 4,865,580
Bonds, Series 1991-D, 6.700%, 12/01/21 (Pre-refunded to 12/01/00)
10,000,000 County of Orange, California, Certificates of Participation (Civic 8/01 at 102 AAA 10,993,300
Center Expansion Project), 6.700%, 8/01/18 (Pre-refunded to 8/01/01)
13,525,000 County of San Bernardino, California, Single Family Mortgage No Opt. Call AAA 17,466,320
Revenue Bonds (GNMA Mortgage-Backed Securities),
1989 Series A, 7.750%, 11/01/14 (Alternative Minimum Tax)
8,295,000 San Diego County Water Authority, Water Revenue Certificates 5/01 at 102 AA-*** 8,978,508
of Participation, Series 1991A, 6.300%, 5/01/05
(Pre-refunded to 5/01/01)
3,385,000 The Community Redevelopment Agency of the City of Santa Ana, 9/99 at 102 A-*** 3,527,339
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)
2,575,000 City of Santa Maria, Revenue Certificates of Participation 9/02 at 102 N/R*** 2,894,558
(Marian Medical Center), 6.750%, 9/01/22 (Pre-refunded to 9/01/02)
4,300,000 Sierra View Local Hospital District, Insured Health Facility Revenue 3/02 at 102 A+*** 4,730,946
Bonds, Series 1992, 6.400%, 3/01/22 (Pre-refunded to 3/01/02)
3,025,000 Tulare Local Hospital District, Insured Health Facility Revenue Bonds, 12/01 at 102 A+*** 3,354,876
Series 1991A, 6.750%, 12/01/21 (Pre-refunded to 12/01/01)
6,185,000 The Regents of the University of California, Refunding Revenue Bonds 9/02 at 102 AA-*** 6,986,762
(Multiple Purpose Projects), Series A, 6.875%, 9/01/16
(Pre-refunded to 9/01/02)
- ------------------------------------------------------------------------------------------------------------------------------------
Utilities - 5.9%
1,000,000 Anaheim Public Financing Authority (California), Revenue Bonds, 10/08 at 101 AAA 995,050
Series 1998 (City of Anaheim Electric System Distribution Facilities),
5.000%, 10/01/23
10,000,000 California Pollution Control Financing Authority, Pollution Control 12/01 at 102 Aa3 10,932,600
Revenue Bonds (Southern California Edison Company),
1991 Series, 6.900%, 12/01/17 (Alternative Minimum Tax)
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Utilities (continued)
$ 5,000,000 California Pollution Control Financing Authority, Pollution Control Revenue6/02 at 102 AA- $ 5,500,400
Bonds (Pacific Gas and Electric Company), 1992 Series A,
6.625%, 6/01/09 (Alternative Minimum Tax)
5,665,000 City of Redlands, Certificates of Participation (1993 Refunding of 3/99 at 100 AAA 5,682,901
1986 and 1987 Projects), 6.800%, 3/01/07
5,500,000 Southern California Public Power Authority, Multiple Project No Opt. Call A 6,641,745
Revenue Bonds, 1989 Series, 6.750%, 7/01/11
- ------------------------------------------------------------------------------------------------------------------------------------
Water and Sewer - 3.7%
1,300,000 State of California Department of Water Resources, Central Valley 12/08 at 101 AA 1,282,801
Project, Water System Revenue Bonds, Series U, 5.000%, 12/01/29
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 3,974,172
8,400,000 4.500%, 5/15/30 5/03 at 102 AAA 7,689,696
1,000,000 City of Norco, Refunding Certificates of Participation, Series 1998 10/08 at 102 AAA 1,009,529
(Sewer System and Water System Improvement Project),
5.125%, 10/01/28
2,000,000 City of Santa Barbara, California, Certificates of Participation 4/02 at 102 AAA 2,188,979
(1992 Water System Improvement Project and Refunding),
6.700%, 4/01/27
2,200,000 City of Stockton (California), Revenue Certificates of Participation, 9/08 at 102 AAA 2,237,179
1998 Series A (Wastewater System Project), 5.200%, 9/01/29
- ------------------------------------------------------------------------------------------------------------------------------------
$ 448,925,000 Total Investments - (cost $445,367,233) - 98.7% 496,293,133
=============
Other Assets Less Liabilities - 1.3% 6,711,489
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $503,004,622
====================================================================================================================
* Optional Call Provisions: Dates (month and year) and prices of the
earliest optional call or redemption. There may be other call
provisions at varying prices at later dates.
** Ratings: 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
February 28, 1999
(Unaudited)
<CAPTION>
California California California California California California
Value Performance Opportunity Investment Select Quality Quality
Plus Quality Income
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Assets
Investments in municipal securities,
at market value (note 1) $257,699,139 $289,887,269 $183,056,363 $299,391,429 $505,079,708 $496,293,133
Cash 35,771 268,964 372,081 43,198 -- --
Receivables:
Interest 3,709,823 4,847,290 2,424,990 4,518,304 7,217,552 8,711,137
Investments sold 122,286 1,030,300 -- 280,000 260,300 2,996,444
Other assets 41,992 32,217 20,114 30,963 55,312 47,021
- ------------------------------------------------------------------------------------------------------------------------------------
Total assets 261,609,011 296,066,040 185,873,548 304,263,894 512,612,872 508,047,735
- ------------------------------------------------------------------------------------------------------------------------------------
Liabilities
Cash overdraft -- -- -- -- 124,065 289,209
Payable for investments purchased -- 3,250,000 -- -- -- 2,555,274
Accrued expenses:
Management fees (note 6) 119,360 143,588 91,843 149,061 248,498 245,332
Other 122,339 89,266 88,981 126,044 153,078 131,737
Preferred share dividends payable N/A 39,509 18,079 32,555 41,300 59,916
Common share dividends payable 1,046,740 1,053,822 676,210 1,060,188 1,794,703 1,761,645
- ------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 1,288,439 4,576,185 875,113 1,367,848 2,361,644 5,043,113
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets (note 7) $260,320,572 $291,489,855 $184,998,435 $302,896,046 $510,251,228 $503,004,622
====================================================================================================================================
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 12,705,318 8,003,150 13,336,557 22,718,352 21,615,882
====================================================================================================================================
Net asset value per Common share outstanding
(net assets less Preferred shares
at liquidation value, divided by
Common shares outstanding) $ 10.32 $ 15.86 $ 16.24 $ 15.96 $ 15.86 $ 16.33
====================================================================================================================================
N/A - Fund is not authorized to issue Preferred Shares.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
Statement of Operations
Six Months Ended February 28, 1999
(Unaudited)
<CAPTION>
California California California California California California
Value Performance Opportunity Investment Select Quality Quality
Plus Quality Income
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Investment Income (note 1) $7,273,490 $8,798,090 $5,587,052 $8,838,158 $14,878,298 $14,470,051
- -----------------------------------------------------------------------------------------------------------------------------------
Expenses
Management fees (note 6) 754,967 930,108 596,361 965,172 1,611,075 1,586,206
Preferred shares - auction fees N/A 111,576 68,185 111,576 185,959 185,959
Preferred shares - dividend
disbursing agent fees N/A 9,917 4,959 4,959 9,917 9,917
Shareholders' servicing agent
fees and expenses 26,435 15,474 9,600 22,811 20,547 16,679
Custodian's fees and expenses 27,224 28,160 22,299 28,211 38,361 37,974
Directors' fees and expenses (note 6) 1,220 1,374 874 1,424 2,409 2,351
Professional fees 8,520 8,829 8,675 8,842 9,137 9,108
Shareholders' reports - printing
and mailing expenses 38,332 29,307 19,991 51,228 47,893 46,489
Stock exchange listing fees 16,216 12,181 8,078 12,208 16,243 16,100
Investor relations expense 10,923 11,865 7,463 12,037 19,608 18,840
Other expenses 6,669 9,671 7,585 9,708 15,136 14,176
- -----------------------------------------------------------------------------------------------------------------------------------
Total expenses 890,506 1,168,462 754,070 1,228,176 1,976,285 1,943,799
- -----------------------------------------------------------------------------------------------------------------------------------
Net investment income 6,382,984 7,629,628 4,832,982 7,609,982 12,902,013 12,526,252
- -----------------------------------------------------------------------------------------------------------------------------------
Realized and Unrealized
Gain (Loss) from Investments
Net realized gain from investment
transactions (notes 1 and 4) 378,395 12,802 369,853 211,334 35,910 53,772
Net change in unrealized appreciation
or depreciation of investments (846,395) (1,029,111) (1,240,266) (811,058) (1,201,600) (556,119)
- -----------------------------------------------------------------------------------------------------------------------------------
Net gain (loss) from investments (468,000) (1,016,309) (870,413) (599,724) (1,165,690) (502,347)
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
from operations $5,914,984 $6,613,319 $3,962,569 $7,010,258 $11,736,323 $12,023,905
===================================================================================================================================
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
(Unaudited)
<CAPTION>
California Value California Performance Plus California Opportunity
- -----------------------------------------------------------------------------------------------------------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended Six Months Ended Year Ended
2/28/99 8/31/98 2/28/99 8/31/98 2/28/99 8/31/98
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Operations
Net investment income $ 6,382,984 $ 13,379,417 $ 7,629,628 $ 15,508,756 $ 4,832,982 $ 9,753,712
Net realized gain from investment
transactions (notes 1 and 4) 378,395 1,609,036 12,802 753,844 369,853 1,168,298
Net change in unrealized appreciation
or depreciation of investments (846,395) 7,275,057 (1,029,111) 3,671,035 (1,240,266) 2,432,009
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
from operations 5,914,984 22,263,510 6,613,319 19,933,635 3,962,569 13,354,019
- -----------------------------------------------------------------------------------------------------------------------------------
Distributions to Shareholders (note 1)
From undistributed net investment income:
Common shareholders (6,280,444) (13,405,303) (6,393,247) (13,022,043) (4,050,972) (8,069,724)
Preferred shareholders N/A N/A (1,158,953) (2,861,139) (669,121) (1,759,155)
From accumulated net realized gains
from investment transactions:
Common shareholders (1,225,822) (1,344,368) (605,188) (209,142) (939,551) (64,394)
Preferred shareholders N/A N/A (134,766) (44,442) (204,666) (13,860)
- -----------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets from
distributions to shareholders (7,506,266) (14,749,671) (8,292,154) (16,136,766) (5,864,310) (9,907,133)
- -----------------------------------------------------------------------------------------------------------------------------------
Capital Share Transactions (note 2)
Net proceeds from Common shares
issued to shareholders due to
reinvestment of distributions -- 229,709 835,456 1,600,110 467,554 706,515
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets (1,591,282) 7,743,548 (843,379) 5,396,979 (1,434,187) 4,153,401
Net assets at beginning of period 261,911,854 254,168,306 292,333,234 286,936,255 186,432,622 182,279,221
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets at end of period $260,320,572 $261,911,854 $291,489,855 $292,333,234 $184,998,435 $186,432,622
===================================================================================================================================
Balance of undistributed net
investment income at
end of period $ 249,763 $ 147,223 $ 551,073 $ 473,645 $ 402,435 $ 289,546
===================================================================================================================================
N/A - Fund is not authorized to issue Preferred Shares.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
California Investment Quality California Select Quality California Quality Income
- ------------------------------------------------------------------------------------------------------------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended Six Months Ended Year Ended
2/28/99 8/31/98 2/28/99 8/31/98 2/28/99 8/31/98
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Operations
Net investment income $ 7,609,982 $ 15,657,549 $ 12,902,013 $ 26,310,925 $ 12,526,252 $ 25,437,033
Net realized gain from investment
transactions (notes 1 and 4) 211,334 444,251 35,910 2,949,181 53,772 585,068
Net change in unrealized appreciation
or depreciation of investments (811,058) 4,240,471 (1,201,600) 6,035,385 (556,119) 10,900,888
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
from operations 7,010,258 20,342,271 11,736,323 35,295,491 12,023,905 36,922,989
- -----------------------------------------------------------------------------------------------------------------------------------
Distributions to Shareholders (note 1)
From undistributed net investment income:
Common shareholders (6,352,554) (13,080,251) (10,750,687) (22,044,563) (10,558,216) (21,032,274)
Preferred shareholders (1,157,122) (2,868,562) (1,709,189) (4,721,829) (1,980,159) (4,840,296)
From accumulated net realized gains
from investment transactions:
Common shareholders (383,623) (62,200) (2,428,752) (322,695) (388,716) --
Preferred shareholders (83,412) (13,716) (521,736) (66,525) (90,180) --
- -----------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets from
distributions to shareholders (7,976,711) (16,024,729) (15,410,364) (27,155,612) (13,017,271) (25,872,570)
- -----------------------------------------------------------------------------------------------------------------------------------
Capital Share Transactions (note 2)
Net proceeds from Common shares
issued to shareholders due to
reinvestment of distributions 754,981 1,509,857 1,254,587 1,883,226 997,897 1,988,327
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets (211,472) 5,827,399 (2,419,454) 10,023,105 4,531 13,038,746
Net assets at beginning of period 303,107,518 297,280,119 512,670,682 502,647,577 503,000,091 489,961,345
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets at end of period $302,896,046 $303,107,518 $510,251,228 $512,670,682 $503,004,622 $503,000,091
===================================================================================================================================
Balance of undistributed net
investment income at
end of period $ 427,554 $ 327,248 $ 767,879 $ 325,742 $ 967,512 $ 979,635
===================================================================================================================================
See accompanying notes to financial statements.
</TABLE>
<PAGE>
Notes to Financial Statements
(Unaudited)
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
February 28, 1999, California Performance Plus had outstanding when-issued
purchase commitments of $3,250,000. There were no such outstanding purchase
commitments in any of the other 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. 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 so in the future, they did not
make any such investments during the six months ended February 28, 1999.
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.
<TABLE>
2. Fund Shares
Transactions in Common shares were as follows:
<CAPTION>
California Value California Performance Plus
- --------------------------------------------------------------------------------------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
2/28/99 8/31/98 2/28/99 8/31/98
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares issued to shareholders
due to reinvestment of distributions -- 22,464 46,034 91,264
==============================================================================================================
<CAPTION>
California Opportunity California Investment Quality
- --------------------------------------------------------------------------------------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
2/28/99 8/31/98 2/28/99 8/31/98
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares issued to shareholders
due to reinvestment of distributions 26,538 40,765 43,727 88,738
==============================================================================================================
<CAPTION>
California Select Quality California Quality Income
- --------------------------------------------------------------------------------------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
2/28/99 8/31/98 2/28/99 8/31/98
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares issued to shareholders
due to reinvestment of distributions 74,363 113,065 57,207 118,416
==============================================================================================================
</TABLE>
<PAGE>
3. Distributions to Common Shareholders
The Funds declared Common share dividend distributions from their tax-exempt net
investment income which were paid April 1, 1999, to shareholders of record on
March 15, 1999, 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 $.0830 $.0845 $.0795 $.0790 $.0815
=========================================================================================================
</TABLE>
4. Securities Transactions
Purchases and sales (including maturities) of investments in municipal
securities and temporary municipal investments during the six months ended
February 28, 1999, 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 $29,182,435 $12,813,803 $9,325,758 $8,527,620 $13,285,326 $11,418,395
Temporary municipal
investments -- 5,900,000 1,300,000 4,000,000 6,000,000 5,100,000
Sales and Maturities:
Investments in
municipal securities 25,947,300 10,530,274 9,853,519 7,494,235 13,972,781 11,490,355
Temporary municipal
investments 1,500,000 5,900,000 1,800,000 4,000,000 6,000,000 5,100,000
=========================================================================================================
</TABLE>
At February 28, 1999, the identified cost of investments owned for federal
income tax purposes was the same as the cost for financial reporting purposes
for each Fund.
<PAGE>
5. Unrealized Appreciation (Depreciation)
Gross unrealized appreciation and gross unrealized depreciation of investments
at February 28, 1999, 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 $22,316,273 $23,297,874 $17,648,135 $25,942,014 $42,544,736 $50,949,009
depreciation (146,945) (79,799) (50,063) (21,390) (79,444) (23,109)
- ---------------------------------------------------------------------------------------------------------
Net unrealized appreciation $22,169,328 $23,218,075 $17,598,072 $25,920,624 $42,465,292 $50,925,900
=========================================================================================================
</TABLE>
6. Management Fee and Other Transactions with Affiliates
Under California Value's investment management agreement with Nuveen Advisory
Corp. (the "Adviser"), a wholly owned subsidiary of The John Nuveen Company, the
Fund pays an annual management fee, payable monthly of .35 of 1% of the average
daily net asset value of the Fund, as well as 4.125% of the gross interest
income of the Fund.
Under the Fund's (excluding California Value) investment management agreements
with the Adviser, each Fund pays an annual management fee, payable monthly, at
the rates set forth below, which are based upon the average daily net asset
value of each Fund as follows:
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 February 28, 1999, 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 252,227 127,053 80,032 133,366 227,184 216,159
Paid-in surplus 237,377,899 177,581,183 111,549,569 186,278,245 316,757,810 300,841,476
Balance of undistributed net
investment income 249,763 551,073 402,435 427,554 767,879 967,512
Accumulated net realized gain
from investment
transactions 271,355 12,471 368,327 136,257 33,063 53,575
Net unrealized appreciation
of investments 22,169,328 23,218,075 17,598,072 25,920,624 42,465,292 50,925,900
- ---------------------------------------------------------------------------------------------------------
Net assets $260,320,572 $291,489,855 $184,998,435 $302,896,046 $510,251,228 $503,004,622
=========================================================================================================
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>
<TABLE>
Financial Highlights
(Unaudited)
Selected data for a Common share outstanding throughout
each period is as follows:
<CAPTION>
Investment Operations
Net
Realized/
Beginning Net Unrealized
Net Asset Investment Investment
Value Income Gain (Loss) Total
California Value
<S> <C> <C> <C> <C>
Year Ended 8/31:
1999 (a) $10.38 $ .25 $ (.01) $ .24
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:
1999 (a) 15.98 .60 (.07) .53
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:
1999 (a) 16.48 .60 (.10) .50
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:
1999 (a) 16.03 .57 (.03) .54
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:
1999 (a) 16.02 .57 (.05) .52
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:
1999 (a) 16.37 .58 (.02) .56
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
California Value
<S> <C> <C> <C> <C> <C>
Year Ended 8/31:
1999 (a) $ (.25) $ N/A $(.05) $ N/A $ (.30)
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:
1999 (a) (.50) (.09) (.05) (.01) (.65)
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:
1999 (a) (.51) (.08) (.12) (.03) (.74)
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:
1999 (a) (.48) (.09) (.03) (.01) (.61)
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:
1999 (a) (.47) (.08) (.11) (.02) (.68)
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:
1999 (a) (.49) (.09) (.02) -- (.60)
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 Ending
Net Asset Ending Based on Based on Net Net Assets
Value Market Value Market Value** Asset Value** (000)
<CAPTION>
California Value
<S> <C> <C> <C> <C> <C>
Year Ended 8/31:
1999 (a) $10.32 $10.0000 4.93% 2.30% $260,321
1998 10.38 9.8125 2.11 8.90 261,912
1997 10.09 10.1875 7.59 7.55 254,168
1996 10.03 10.1250 12.52 5.16 251,948
1995 10.20 9.6250 (6.59) 6.92 193,426
1994 10.20 11.0000 (.50) 1.32 192,237
<CAPTION>
California Performance Plus
<S> <C> <C> <C> <C> <C>
Year Ended 8/31:
1999 (a) 15.86 17.3125 (.84) 2.73 291,490
1998 15.98 18.0000 10.74 8.93 292,333
1997 15.67 17.2500 16.71 8.77 286,936
1996 15.41 15.7500 14.04 6.53 282,104
1995 15.45 14.7500 5.75 8.75 281,766
1994 15.24 15.0000 (8.34) (.48) 279,175
<CAPTION>
California Opportunity
<S> <C> <C> <C> <C> <C>
Year Ended 8/31:
1999 (a) 16.24 17.5625 3.21 2.36 184,998
1998 16.48 17.6250 11.99 9.36 186,433
1997 16.04 16.6875 11.83 9.79 182,279
1996 15.57 15.8750 13.10 6.31 177,862
1995 15.64 15.0000 4.72 9.43 178,072
1994 15.32 15.3750 (8.20) (1.27) 175,325
<CAPTION>
California Investment Quality
<S> <C> <C> <C> <C> <C>
Year Ended 8/31:
1999 (a) 15.96 16.9375 3.35 2.74 302,896
1998 16.03 16.8750 8.39 8.66 303,108
1997 15.70 16.5000 12.32 8.82 297,280
1996 15.37 15.6250 11.08 6.72 291,423
1995 15.37 15.0000 3.77 8.38 290,426
1994 15.20 15.5000 (2.10) (.64) 287,504
<CAPTION>
California Select Quality
<S> <C> <C> <C> <C> <C>
Year Ended 8/31:
1999 (a) 15.86 16.6875 3.10 2.66 510,251
1998 16.02 16.7500 8.11 8.93 512,671
1997 15.65 16.4375 13.22 10.17 502,648
1996 15.19 15.5000 15.73 6.95 490,214
1995 15.23 14.3750 7.14 9.22 489,967
1994 14.96 14.4380 (7.60) (2.52) 483,986
<CAPTION>
California Quality Income
<S> <C> <C> <C> <C> <C>
Year Ended 8/31:
1999 (a) 16.33 17.3125 2.57 2.87 503,005
1998 16.37 17.3750 13.29 9.65 503,000
1997 15.86 16.2500 15.19 10.74 489,961
1996 15.24 15.0000 12.32 7.89 475,498
1995 15.05 14.2500 9.24 9.57 471,064
1994 14.68 14.0000 (6.27) (1.41) 463,200
<PAGE>
<CAPTION>
Ratios/Supplemental Data
Ratio of Net Ratio of Net
Ratio of Investment Ratio of Investment
Expenses to Income to Expenses to Income to
Average Average Average Total Average Total
Net Assets Net Assets Net Assets Net Assets Portfolio
Applicable to Applicable to Including Including Turnover
Common Shares++ Common Shares++ Preferred++ Preferred++ Rate
California Value
<S> <C> <C> <C> <C> <C>
Year Ended 8/31:
1999 (a) .69%* 4.91%* N/A N/A 10%
1998 .71 5.19 N/A N/A 40
1997 .74 5.85 N/A N/A 17
1996 .77 6.00 N/A N/A 23
1995 .75 6.32 N/A N/A 9
1994 .76 6.24 N/A N/A 9
<CAPTION>
California Performance Plus
<S> <C> <C> <C> <C> <C>
Year Ended 8/31:
1999 (a) 1.16* 7.59* .81* 5.26* 4
1998 1.18 7.76 .81 5.35 20
1997 1.19 8.17 .81 5.59 12
1996 1.18 8.23 .80 5.62 14
1995 1.23 8.56 .83 5.77 24
1994 1.21 8.21 .83 5.63 19
<CAPTION>
California Opportunity
<S> <C> <C> <C> <C> <C>
Year Ended 8/31:
1999 (a) 1.16* 7.43* .82* 5.23* 5
1998 1.17 7.52 .82 5.28 18
1997 1.19 7.85 .82 5.46 4
1996 1.19 7.88 .82 5.47 8
1995 1.21 8.38 .83 5.73 36
1994 1.25 7.94 .87 5.51 24
<CAPTION>
California Investment Quality
<S> <C> <C> <C> <C> <C>
Year Ended 8/31:
1999 (a) 1.16* 7.17* .81* 5.05* 2
1998 1.15 7.45 .80 5.22 21
1997 1.16 7.82 .80 5.44 12
1996 1.16 7.95 .81 5.51 10
1995 1.18 8.36 .81 5.72 14
1994 1.18 7.97 .82 5.53 18
<CAPTION>
California Select Quality
<S> <C> <C> <C> <C> <C>
Year Ended 8/31:
1999 (a) 1.10* 7.18* .78* 5.08* 3
1998 1.11 7.35 .78 5.18 17
1997 1.12 7.68 .78 5.36 5
1996 1.13 7.73 .79 5.38 13
1995 1.16 8.25 .80 5.66 12
1994 1.16 7.76 .81 5.43 15
<CAPTION>
California Quality Income
<S> <C> <C> <C> <C> <C>
Year Ended 8/31:
1999 (a) 1.11* 7.13* .78* 5.01* 2
1998 1.12 7.34 .78 5.12 11
1997 1.14 7.69 .79 5.31 8
1996 1.15 7.83 .79 5.37 6
1995 1.19 8.36 .80 5.63 29
1994 1.17 7.81 .80 5.35 12
N/A Fund is not authorized to issue Preferred shares.
* Annualized.
** Total Investment Return on Market Value is the combination of reinvested
dividend income, reinvested capital gains distributions, if any, and
changes in stock price per share. Total Return on Net Asset Value is the
combination of reinvested dividend income, reinvested capital gains
distributions, if any, and changes in net asset value per share. Total
returns are not annualized for periods less than one year.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to preferred
shareholders; income ratios reflect income earned on assets attributable to
Preferred Shares, if applicable.
+++ 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.
(a) For the six months ended February 28, 1999.
</TABLE>
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
Dividend and Growth Fund
Income
Income 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
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, we have updated or replaced our trading, fund
management, and pricing systems at Nuveen - systems that directly affect our
investors and their financial advisers - to address Year 2000 concerns.
We continue to work closely with our transfer agent, custodian, firms through
whom we buy and sell portfolio securities, and other service partners to monitor
the Year 2000 readiness of their systems, while addressing other remaining
systems issues.
In addition, the Funds hold securities of issuers whose business operations
leave them susceptible to Year 2000 concerns. We seek to evaluate an issuer's
Year 2000 readiness as part of our initial and ongoing research of these
issuers. This is only one of the many factors considered in determining whether
to buy, sell, or continue holding a particular security.
We anticipate that all significant components of our Year 2000 review, repair,
and testing program will be complete by mid-1999. This includes appropriate
industry-wide testing of critical systems and receipt of satisfactory assurances
from critical service providers, vendors, and issuers regarding their Year 2000
readiness. We are also making Year 2000 contingency plans to guide recovery
efforts in the event that, despite our remediation attempts, Year 2000 issues
adversely affect the Funds. Although we cannot give complete assurance at this
time that the steps we take will be sufficient to prevent any problems that
would impact the Nuveen Exchange-Traded Funds, we can assure you that we will
take all reasonable steps to prevent disruption of the services provided by your
Fund.
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 six months ended February 28, 1999. 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
FSA-1-2-99
