NUVEEN Exchange-Traded Funds
August 31, 1999
Annual Report
Dependable, tax-free income to help you keep more of what you earn.
NCA
NCP
NCO
NQC
NVC
NUC
NAC
California
Photo of: People walking along beach.
<PAGE>
Highlights
As of August 31, 1999
Credit Quality Performance Highlights
Nuveen California Municipal Value Fund, Inc. (NCA)
o Outperformed Lipper Peer Group total return for
one-year period *
o (graphic of: 4 stars) Four-star Morningstar Rating**
Pie Chart:
AAA/U.S. Guaranteed 66%
AA 7%
A 1%
BBB/NR 26%
Nuveen California Performance Plus Municipal Fund, Inc. (NCP)
o Outperformed Lipper Peer Group total return for
one-year period *
o (graphic of: 5 stars) Five-star Morningstar Rating **
Pie Chart:
AAA/U.S. Guaranteed 58%
AA 7%
A 6%
BBB/NR 29%
Nuveen California Municipal Market Opportunity Fund, Inc. (NCO)
o Stable tax-free dividend for 43 consecutive months
o (graphic of: 4 stars) Four-star Morningstar RatingTM **
Pie Chart:
AAA/U.S. Guaranteed 67%
AA 2%
A 2%
BBB/NR 29%
Nuveen California Investment Quality Municipal Fund, Inc. (NQC)
o Outperformed Lipper Peer Group total return for
one-year period *
o (graphic of: 4 stars) Four-star Morningstar RatingTM **
Pie Chart:
AAA/U.S. Guaranteed 66%
AA 7%
A 1%
BBB/NR 26%
Nuveen California Select Quality Municipal Fund, Inc. (NVC)
o Outperformed Lipper Peer Group total return for
one-year period *
o (graphic of: 4 stars) Four-star Morningstar RatingTM **
Pie Chart:
AAA/U.S. Guaranteed 70%
AA 17%
A 9%
BBB/NR 4%
Nuveen California Quality Income Municipal Fund, Inc. (NUC)
o Outperformed Lipper Peer Group total return for
one-year period *
o (graphic of: 5 stars) Five-star Morningstar RatingTM **
Pie Chart:
AAA/U.S. Guaranteed 65%
AA 6%
A 7%
BBB/NR 22%
Nuveen California Dividend Advantage Municipal Fund (NAC)
o Taxable-equivalent market yield of 9.22% ***
o The first Nuveen California Exchange-Traded Fund since
1993
Pie Chart:
AAA/U.S. Guaranteed 53%
AA 10%
A 13%
BBB/NR 24%
* The Lipper Peer Group return represents the average annualized returns of the
17 funds in the Lipper California Municipal Debt category. The return assumes
reinvestment of dividends and does not reflect any applicable sales charge.
** Morningstar proprietary ratings reflect historical risk-adjusted performance
as of August 31, 1999. The ratings are subject to change every month. Past
performance is no guarantee of future results. Morningstar ratings are
calculated from the fund's three-, five-, and 10-year average annual returns
(if applicable) in excess of 90-day Treasury bill returns with appropriate
fee adjustments, and a risk factor that reflects fund performance below
90-day T-bill returns. NCA received four, five, and four stars for each of
the three-, five- and 10-year periods. NCP and NUC received four stars for
the three-year period and five stars for the five-year period. NVC received
four stars for the three and five-year periods. NCO and NQC received three
stars for the three-year period and four stars for the five-year period. The
top 10% of the funds in a broad asset class receive five stars, the next
22.5% receive four stars, and the next 35% receive three stars. The funds
were rated among 194 funds for the three-year period, 193 funds for the
five-year period, and 30 funds for the 10-year period.
***For investors in the combined 37.5% federal and state income tax bracket.
Contents
1 Dear Shareholder
3 Portfolio Manager's Comments
7 NCA Performance Overview
8 NCP Performance Overview
9 NCO Performance Overview
10 NQC Performance Overview
11 NVC Performance Overview
12 NUC Performance Overview
13 NAC Performance Overview
14 Report of Independent Auditors
15 Portfolio of Investments
42 Statement of Net Assets
44 Statement of Operations
46 Statement of Changes in Net Assets
49 Notes to Financial Statements
54 Financial Highlights
56 Build Your Wealth Automatically
57 Fund Information
<PAGE>
Photo of: Timothy R. Schwertfeger Chairman of the Board
sidebar text: Wealth takes a lifetime to build. Once achieved, it should be
preserved.
Dear Shareholder
I am pleased to report to you on the annual performance of your Nuveen
Exchange-Traded Fund. Providing an attractive tax-free dividend is the Fund's
main objective. Over the past year, your Fund has continued to achieve this
goal. During the period covered by this report, we have seen some shifts in U.S.
economic trends and the fixed-income environment in which your Nuveen
Exchange-Traded Fund operates. I appreciate the opportunity to discuss these
changes with you, as does the portfolio manager of your Fund, who reviews fund
performance later in this report.
A Challenging Investment Environment
Over the past 12 months, the U.S. economy continued to be characterized by
surprisingly robust growth, benign inflation, and unemployment levels that
remained among the lowest in three decades. How-ever, concerns about the
persistent pace of the economy's expansion continued to test the new paradigm,
which holds that improvements in productivity enable us to have both economic
growth and low inflation at the same time. With investors and the various
markets watching and reacting to each announcement concerning economic
statistics, volatility increased, especially in the equity markets, and the
spectre of inflation seemed to lurk behind every report.
In an effort to pre-empt this threat of inflation, the Federal Reserve moved to
raise interest rates by a quarter-point at the end of June and again in late
August. This brought the federal funds rate - which represents the amount banks
charge one another on overnight loans, establishing the standard for other
short-term rates - from 4.75% to 5.25% and reversed two of the three rate cuts
made by the Fed in the fall of 1998. Despite the Fed's statement that it would
return to a neutral bias concerning future interest rate action, comments by Fed
Chairman Alan Greenspan about the need for closer attention to activity in the
financial markets kept open the possibility of additional rate hikes.
Municipal Bond Performance
Over the past year, our exchange-traded municipal bond funds continued to offer
attractive, stable income in a market that places a high premium on yield. At
the end of August 1999, the ratio between long-term municipal yields and 30-year
Treasury yields stood at 96%, compared with the historical average of 86% for
the period 1986-1999. For investors, this meant that quality long-term municipal
bonds offered yields comparable to those of long Treasury bonds - even before
the tax advantages of municipals were taken into account. On an after-tax basis,
municipal bonds continued to present an exceptionally attractive investment
option relative to Treasuries.
In the coming months, we expect to see a good supply of new municipal bonds,
although total volume is expected to drop from the near-record levels of 1998.
This is due to the dramatic decrease in refundings, as interest rates moved
above last year's levels and removed much of the incentive for issuers to refund
existing bonds. To date, municipal supply has declined by approximately 25% from
the levels of a year ago. This, in turn, has enhanced the attractiveness of the
municipal bonds that are brought to market, as demand especially from individual
investors - remains strong. We anticipate that this demand will continue to
strengthen as investors increasingly look at rebalancing their portfolios. With
the outlook for tighter supply and continued demand in the months ahead,
Nuveen's established market position as the leading sponsor of exchange-traded
municipal bond funds ensures that we will have excellent access to the bond
offerings that have the potential to add value for our shareholders.
<PAGE>
A Balanced Portfolio: Enhanced Growth with Reduced Risk
If you are like most investors in the marketplace today, your goals for tax-free
investing probably include capturing high after-tax total returns while
moderating risk. To demonstrate the role that municipal bonds can play in
achieving this goal, Nuveen tracked a balanced portfolio consisting of equities
and municipal bonds and compared its hypothetical investment performance - based
on appropriate market indexes and tax rates - with that of a balanced portfolio
composed of equities and taxable bonds.
Our research showed that, over the past 20 years, the pairing of equities with
municipal bonds had provided both superior after-tax total returns and lower
levels of risk than the combination of equities and taxable bonds. Incorporating
even a 20% allocation of municipal bonds into an all-equity portfolio cut risk
substantially, with only a small reduction in after-tax total return. Purchasing
shares of a Nuveen Exchange-Traded Municipal Bond Fund provides an easy way to
incorporate the benefits of municipal bonds into a balanced portfolio.
Nuveen Funds: An Answer to Your Investment Needs
In light of the recent shifts in the economic environment, your financial
adviser can serve as a valuable resource in helping you determine if adjustments
are needed in your current asset allocation plan and suggesting investments that
can accomplish this. By investing in other Nuveen funds, you can bring balance
to your portfolio and provide proper exposure to the different types of
investments needed to enhance your potential for success. In addition, if you
are satisfied with the performance of your Nuveen Exchange-Traded Fund, your
adviser can set up a reinvestment plan designed to purchase additional shares of
that fund. For more information on all of Nuveen's funds, contact your financial
adviser for a prospectus detailing all charges and expenses, or call Nuveen at
(800) 621-7227. Please read the prospectus carefully before you invest or send
money.
Since 1898, Nuveen has been synonymous with investments that stand the test of
time. As we look ahead to the new millennium, we are committed to maintaining
that reputation and finding the best ways to serve your evolving investment
needs. Thank you for your continued confidence.
Sincerely,
/s/ Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
October 15, 1999
sidebar text: "Purchasing shares of a Nuveen Exchange-Traded Municipal Bond Fund
provides an easy way to incorporate the benefits of municipal bonds into a
balanced portfolio."
<PAGE>
Nuveen California Exchange-Traded Funds
Portfolio Manager's Comments
Portfolio manager Bill Fitzgerald discusses the California municipal market,
recent fund performance, and key investment strategies for the Nuveen California
Exchange-Traded Funds. 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, NUC in 1993, and NCA and NVC in 1998. In May 1999, Bill assumed
responsibility for our newest California exchange-traded fund, the Nuveen
California Dividend Advantage Municipal Fund (NAC).
What factors contributed to the performance of the California economy during the
past 12 months?
Strength, diversification, and favorable prospects are three key phrases that
have been used to describe the state of the California economy over the past
year. Although the state's heavy reliance on exports to Asia caused some concern
in the aftermath of 1998's global financial crisis, California's continued
diversification into sectors such as services, motion pictures,
telecommunications, and construction helped to balance out the state economy and
minimize the impact of the decline in exports, which was felt mainly by the
high-tech industries of the Silicon Valley. To avert situations like the
statewide recession of the early 1990s, which was touched off by a downturn in
the aerospace and defense industry, California has moved to strategically
protect itself from financial declines by broadening its economic base beyond
one dominant industry. Despite some layoffs attributable to the situation in
Asia, job growth in California reached almost 4% in 1998. In August 1999, the
state unemployment figure was 5.1%, down from 5.9% in August 1998 but higher
than the national average of 4.2%. In recent years, state residents have seen
personal income grow significantly, driven by gains in the equity and real
estate markets, although per capita income now seems to have stabilized at 104%
of the national average. In other recent economic news of note, the state's
budget for 2000 was adopted on schedule for the first time in a number of years.
In recognition of the state's strong growth, diversifying economy, and
manageable debt levels, Standard & Poor's Corporation (S&P) upgraded the rating
on California's general obligation debt to AA- from A+ in August 1999. This put
S&P in line with two other rating agencies, Moody's Investors Service, Inc. and
Fitch IBCA, Inc., which had previously raised the state's credit rating to Aa3
and AA-, respectively. At a time when many hospitals and healthcare
organizations across the United States are experiencing financial difficulties,
the upgrade was especially important.
Over the past 12 months, what has municipal supply been like for California?
For the first eight months of 1999, new California municipal supply fell 18%
from the levels recorded during the same period in 1998, compared with a 24%
decline in national municipal supply. These numbers reflect the extremely tight
supply at the beginning of 1999. Figures for the past six months (March-August
1999) show that issuance in the California municipal market actually increased
10%, bucking the national trend, where issuance has been virtually flat. The
state also approved several significant bond authorizations that have not yet
come to market, so expectations are for strong supply over the next several
years. Demand for California paper from individual investors seeking relief from
the state's high taxes has been exceptionally strong over the past year,
especially for newly established funds, while good demand for individual bonds
by institutional investors enabled us to sell selected bonds at attractive
prices.
How did the Nuveen California Exchange-Traded Funds perform in this environment?
For the 12 months ended August 31, 1999, the Nuveen California funds produced
total returns on net asset value (NAV) ranging from -1.97% to -0.66%, providing
taxable-equivalent total returns1 between 1.82% and 3.22% for shareholders in
the combined 37.5% federal
1 The taxable-equivalent total return represents the total return that must be
earned on a taxable investment in order to equal the total return of the
Nuveen fund on an after-tax basis. The taxable-equivalent total return is
based on the Fund's annualized total return and a combined federal and state
income tax rate of 37.5%.
<PAGE>
and state income tax bracket, as shown in the accompanying table. The annual
total return for the Funds' benchmark, the Lehman Brothers California Tax-Exempt
Bond Index(2), and the average return for the Funds' Lipper California Peer
Group category(3) are also provided. In recognition of their risk-adjusted
performance, all of the California funds shown in the accompanying table were
awarded a Morningstar(4) rating of at least four stars, representing their
overall rating among 194 funds as of August 31, 1999.
This report also includes an overview of the performance of our newest
California fund, the Nuveen California Dividend Advantage Municipal Fund (NAC).
For the period from inception in May 1999 through August 31, 1999, NAC posted a
total return on NAV of -5.99%, equivalent to a taxable total return of -5.38%.
Lehman Lipper
California California Morningstar
Total Return on NAV Total Return(2) Average(3) Rating(4)
- --------------------------------------------------------------------------------
1-Year Ended Taxable- 1-Year Ended 1-Year Ended Overall
8/31/99 Equivalent(1) 8/31/99 8/31/99 Rating
- --------------------------------------------------------------------------------
NCA -1.13% 1.82% 0.39% -1.73% 4
- --------------------------------------------------------------------------------
NCP -0.66% 3.22% 0.39% -1.73% 5
- --------------------------------------------------------------------------------
NCO -1.97% 1.85% 0.39% -1.73% 4
- --------------------------------------------------------------------------------
NQC -1.54% 2.14% 0.39% -1.73% 4
- --------------------------------------------------------------------------------
NVC -1.20% 2.46% 0.39% -1.73% 4
- --------------------------------------------------------------------------------
NUC -0.72% 2.97% 0.39% -1.73% 5
- --------------------------------------------------------------------------------
For additional information on your fund, see the individual Performance
Overviews in this report.
The underperformance of the Funds' total returns on NAV relative to the Lehman
California index can be attributed to their durations. As of August 31, 1999,
the durations of all the California funds covered in this report were longer
than the Lehman California index's 8.20. NCA, which is an unleveraged fund, had
an average duration of 9.55, while the fund durations(5) of the older leveraged
funds ranged from 9.98 to 11.50. The fund duration of NAC was 20.59, which is
typical for a newly established exchange-traded fund. Over time, we will look
for opportunities in the market to purchase bonds that can lower NAC's duration
so that it is closer to 12.
Duration measures a bond fund's price volatility or reaction to interest rate
movements. The longer the duration, the more sensitive the fund's NAV is to
changes in interest rates. During a period of falling interest rates, longer
duration enables a fund's NAV to participate more fully in market gains.
However, when interest rates rise, longer duration can make the fund's NAV more
vulnerable to price declines. Between September 1, 1998, and August 31, 1999,
the yield on the Bond Buyer Revenue Bond Index6 rose from 5.26% to 5.83%. This
meant that funds with longer durations, like the funds in this report, were more
likely to underperform the market, as represented by the unleveraged Lehman
index.
The lengthening of the Funds' durations over the past year was caused by bond
calls that removed shorter bonds from each fund. Proceeds from the called bonds
were then reinvested in issues with longer durations, which provided
incrementally more attractive yields. In addition to enhanced yields, the longer
durations should help position the Funds to regain net asset value as the bond
market recovers.
Over the past year, strong supply in the California municipal market led to the
issuance of several new municipal bond funds by Nuveen and other fund companies.
The availability of these new funds negatively impacted the market demand for
older California funds such as the Nuveen Exchange-Traded Funds, especially
since the Nuveen funds - with the exception of NCA - were trading at premiums to
their net asset value. This resulted in declines in share price across the
board. At the same time, the prevailing interest rate environment, which was
generally higher than that of August 1998, led to a decline in the NAV of each
fund. As a result of these factors, NCA saw its discount (share price below NAV)
narrow, while the premiums (share price above NAV) on the remaining funds
(excluding NAC) widened over the past 12 months.
<TABLE>
<CAPTION>
Premium/ Total Return
Market Yield Discount(7) on Share Price
- -----------------------------------------------------------------------------------------
Taxable- 1-Year Ended Taxable-
8/31/99 Equivalent(1) 8/31/98 8/31/99 8/31/99 Equivalent(1)
- -----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NCA 5.38% 8.61% -5.47% -4.93% -0.43% 2.69%
- -----------------------------------------------------------------------------------------
NCP 5.88% 9.41% 12.64% 14.06% -0.12% 3.31%
- -----------------------------------------------------------------------------------------
NCO 6.01% 9.62% 6.95% 12.05% 2.10% 5.66%
- -----------------------------------------------------------------------------------------
NQC 5.89% 9.42% 5.27% 9.15% 1.67% 5.15%
- -----------------------------------------------------------------------------------------
NVC 5.90% 9.44% 4.56% 8.53% 2.15% 5.65%
- -----------------------------------------------------------------------------------------
NUC 5.88% 9.41% 6.14% 8.80% 1.37% 4.84%
- -----------------------------------------------------------------------------------------
NAC 5.76% 9.22% NA 12.53% 0.96%* 1.54%*
- -----------------------------------------------------------------------------------------
</TABLE>
*Total return since inception (5/99).
How were the Funds' dividends affected?
During the past 12 months, good call protection - and, in the leveraged funds,
the prudent use of leverage - helped support the dividends of NCA, NCO, NQC,
NVC, and NUC and shield the income of these funds from erosion. As of August 31,
1999, these funds had
1 The taxable-equivalent yield/total return represents the yield/total return
that must be earned on a taxable investment in order to equal the yield/total
return of the Nuveen fund on an after-tax basis. The taxable-equivalent yield
is based on the Fund's current market yield and a combined federal and state
income tax rate of 37.5%, while the taxable-equivalent total return is based
on the annualized total return and the 37.5% tax rate.
2 The Lehman Brothers California Tax-Exempt Bond Index is an unleveraged index
comprising a broad range of investment-grade California municipal bonds. The
result for the index does not reflect any initial or ongoing expenses.
3 The Lipper California Peer Group return represents the average annualized
return of the 17 funds in the Lipper California Municipal Debt Funds category.
The return assumes reinvestment of dividends and does not reflect any
applicable sales charges.
4 Morningstar proprietary ratings reflect historical risk-adjusted performance
as of August 31, 1999. The ratings are subject to change every month. Past
performance is no guarantee of future results. Morningstar ratings are
calculated from the fund's three-, five-, and 10-year average annual returns
(if applicable) in excess of 90-day Treasury bill returns with appropriate fee
adjustments, and a risk factor that reflects fund performance below 90-day
T-bill returns. NCA received four, five, and four stars for the three-, five-,
and 10-year periods, respectively. NCP and NUC received four stars for the
three-year period and five stars for the five-year period. NVC received four
stars for the three and five-year periods. NCO and NQC received three stars
for the three-year period and four stars for the five-year period. The top 10%
of the funds in a broad asset class receive five stars, the next 22.5% receive
four stars, and the next 35% receive three stars. The funds were rated among
194 funds for the three-year period, 193 funds for the five-year period, and
30 funds for the 10-year period.
5 Fund duration, also known as leverage-adjusted duration, takes into account
the leveraging process for each fund and therefore differs from the duration
of the actual portfolio of individual bonds that make up the fund. With the
exception of NCA, which is an unleveraged fund, references to duration in this
commentary are intended to indicate fund duration unless otherwise noted.
6 The Bond Buyer Revenue Bond Index is an unmanaged index of long-term municipal
revenue bonds.
7 A fund's premium or discount represents the percentage difference between the
fund's share price and its NAV.
<PAGE>
provided shareholders with steady dividends for periods ranging from 13 to 43
consecutive months. In fact, NUC has now produced steady or increasing dividends
since its inception in November 1991. For NCP, however, the need to reinvest the
proceeds from prepaid and matured high-yield bonds during the relatively lower
interest rate period that prevailed during 1998 led to a dividend reduction in
November 1998. Since this single dividend adjustment, NCP continued to provide
an attractive market yield over the past 10 months.
Additionally, all of the leveraged California exchange-traded funds issue
preferred shares that pay short-term interest rates to investors seeking
short-term liquidity. The proceeds from the preferred shares are used to buy
additional long-term bonds for the Funds' portfolios, which can generate
additional income for the portfolio but which may increase volatility. When
short-term interest rates remain below long-term rates, common shareholders can
potentially earn extra income from the difference between the rate earned on the
Fund's long-term portfolio and the short-term rate paid to preferred
shareholders. While leveraged funds carry higher risk than non-leveraged funds,
investors are compensated for this additional risk in the form of higher yields.
During the past year, the leverage ratios of NCP, NCO, NQC, NVC, and NUC fell
below the Nuveen guideline of 35%. This led to the issuance of new MuniPreferred
shares for NVC and NUC in May and for NCP, NCO, and NQC in June. (NCA, which is
unleveraged, was unaffected by this action.) Nuveen releveraged the funds both
to restore the original leverage ratio of 35% and to provide the potential for
increased incremental tax-free income for common shareholders.
What key strategies were used to manage the Nuveen California funds during the
past 12 months?
Over the past year, these funds were managed with the goal of enhancing dividend
yields, especially in NCA, and maximizing distribution rates. To achieve this
goal, our focus was on taking advantage of the present market environment to
purchase well-structured bonds that could help us increase tax-exempt income and
enhance the Funds' tax efficiency by offsetting potential capital gains with
capital losses.
Overall, the Funds continued to offer excellent credit quality. At the end of
August 1999, the portion of the Funds' assets invested in bonds rated AAA and AA
ranged from 63% to 87%. For the majority of the Funds, this represented a sharp
increase in the allocation in AAA bonds over August 1998 levels. Over the past
year, as interest rates rose, we sold many of the A rated bonds that were in our
portfolio last August. Our goal in selling these bonds was to take a defensive
stance and to enhance the Funds' tax efficiency by offsetting potential capital
gains with capital losses. The proceeds from the sold bonds were then reinvested
in AAA bonds, which offer the benefit of greater liquidity. This allows the
portfolios to take advantage of credit or structure opportunities when they
become available.
With the exception of NVC and NUC, all of the funds also had substantial
allocations of BBB and non-rated investment-grade bonds, ranging from 27% to
35%. These lower-rated bonds generally provided enhanced levels of yield,
especially as credit spreads, which represent the difference between higher
credit quality securities and those of lower credit quality, widened in recent
months. In NAC, the investment guidelines also allow us to further exploit
credit spread differentials by investing in non-investment grade bonds rated BB
and B, although we have not yet added any of these bonds to the Fund. Nuveen's
research expertise, along with our presence in the California market, means that
shareholders can be assured that the creditworthiness of all issuers of BB and B
bonds will be subjected to Nuveen's stringent standards before being included in
the Fund's portfolio.
As credit spreads once again widened, lower-rated securities became more
attractive on a risk-adjusted basis. Using the expertise of Nuveen Research, we
took advantage of opportunities to investigate lower-rated issues as they came
to market and were able to discover those bonds that offered adequate
compensation for their risk levels. For example, in several of the California
funds, we continued to add to our position in bonds that are secured by real
estate investment trusts (REITs), most notably the BBB rated securities issued
by the California Statewide Communities Development Authority for Irvine
Apartment Communities. This planned community provides affordable housing built
with tax-exempt financing and is backed by a successful real estate company.
<PAGE>
In NAC, wider credit spreads also provided an opportunity for us to purchase
another REIT-backed issue, as we added Baa1/BBB+ bonds issued by Archstone
Properties. Both the Irvine Apartment and the Archstone bonds provide excellent
examples of 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 also continue to look for non-rated securities that we believe offer
investment-grade quality. An example of this type of purchase is our investment
in the Rio Bravo Fresno Project, a facility that converts waste materials to
energy. The facility is already in operation, eliminating any construction risk.
At a 6 3/8% yield, we considered this bond, with a maturity date of 2018, to be
undervalued by the marketplace.
In the area of bond calls, NCA, which was assembled in October 1987 as the first
of the Nuveen California Exchange-Traded Funds, currently offers good levels of
call protection, with an average of approximately 5% of its portfolio subject to
calls annually between now and 2004. This should provide additional protection
for the Fund's dividend over this period. However, the five funds that were
assembled between November 1989 and November 1991 are approaching the 10-year
mark, the normal part of the bond market cycle when bond calls are more likely
to occur. Between now and 2004, each of these funds will face scheduled bond
calls affecting almost half their portfolios. For NCP and NCO, the greatest
number of calls are scheduled for 2000, while NQC and NVC will face the majority
of their calls in 2001. NUC is fairly well protected until 2002, when 25% of its
portfolio will be subject to calls.
To minimize the effect of these calls, we are already at work on strategies for
managing through this period. Currently, the majority of the bonds held by these
funds are providing very high levels of yield, and we plan to hold these bonds
for as long as possible to maximize income. We refer to these bonds as "museum
pieces" based on their high yields and good quality, which place them at a
premium in today's market. Approximately six months before their call dates, we
will look for suitable replacements, i.e., undervalued bonds that have the
potential to support the Funds' dividends and enhance portfolio structure. This
will enable us to continue providing the highest possible level of dividends for
our shareholders.
What is Nuveen's outlook for the California funds?
In the months ahead, we plan to take advantage of the higher yields currently
available in the California municipal market to enhance our portfolio holdings.
From a sector perspective, we remain interested in participating in California's
strong and stable real estate market by investing in bonds issued by the
California Housing Finance Agency, a state agency that offers low interest loans
to families making their first home purchase. We will also continue to work on
strategies designed to minimize the impact of bond calls over the next three
years.
The ability to implement strategies with the potential to benefit the Funds
demonstrates the value that can be added by an active bond manager such as
Nuveen. As an experienced investment manager knowledgeable about the unique
aspects of the California municipal market, we are in the marketplace every day,
monitoring market dynamics, looking for opportunities, and capitalizing on them
to the benefit of shareholders.
<PAGE>
Nuveen California Municipal Value Fund, Inc.
Performance Overview
As of August 31, 1999
NCA
Portfolio Statistics
Inception Date 10/87
- --------------------------------------------------
Share Price $9 1/4
- --------------------------------------------------
Net Asset Value $9.73
- --------------------------------------------------
Market Yield 5.38%
- --------------------------------------------------
Taxable-Equivalent Yield
(Federal Tax Rate)(1) 7.80%
- --------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Tax Rate)(1) 8.61%
- --------------------------------------------------
Fund Net Assets ($000) $245,456
- --------------------------------------------------
Average Effective Maturity (Years) 19.31
- --------------------------------------------------
Average Duration 9.55
- --------------------------------------------------
Annualized Total Return
On Share Price On NAV
- --------------------------------------------------
1-Year -0.43% -1.13%
- --------------------------------------------------
5-Year 2.81% 5.41%
- --------------------------------------------------
10-Year 5.35% 6.23%
- --------------------------------------------------
Taxable-Equivalent Total Return(2)
On Share Price On NAV
- --------------------------------------------------
1-Year 2.69% 1.82%
- --------------------------------------------------
5-Year 6.35% 8.94%
- --------------------------------------------------
10-Year 9.05% 9.99%
- --------------------------------------------------
Top Five Sectors (as a % of total investments)
Tax Obligation/Limited 28%
- --------------------------------------------------
U.S. Guaranteed 22%
- --------------------------------------------------
Transportation 10%
- --------------------------------------------------
Tax Obligation/General 9%
- --------------------------------------------------
Housing/Single Family 8%
- --------------------------------------------------
Bar Chart:
1998-1999 Monthly Tax-Free Dividends Per Share(3)
9/98 0.0415
10/98 0.0415
11/98 0.0415
12/98 0.0415
1/99 0.0415
2/99 0.0415
3/99 0.0415
4/99 0.0415
5/99 0.0415
6/99 0.0415
7/99 0.0415
8/99 0.0415
Line Chart:
Share Price Performance
9/4/98 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
10
9.94
9.88
9.88
9.94
10
9.94
10.13
10.06
10
9.5
9.44
9.44
9.38
9.38
9.69
9.75
9.81
9.81
9.69
9.81
9.69
9.75
8.94
9.13
8/31/99 9.25
Weekly Closing Price
Past performance is not predictive of future results.
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.
<PAGE>
Nuveen California Performance Plus Municipal Fund, Inc.
Performance Overview
As of August 31, 1999
NCP
Portfolio Statistics
Inception Date 11/89
- --------------------------------------------------
Share Price $16 15/16
- --------------------------------------------------
Net Asset Value $14.85
- --------------------------------------------------
Market Yield 5.88%
- --------------------------------------------------
Taxable-Equivalent Yield
(Federal Tax Rate)(1) 8.52%
- --------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Tax Rate)(1) 9.41%
- --------------------------------------------------
Fund Net Assets ($000) $295,328
- --------------------------------------------------
Average Effective Maturity (Years) 15.48
- --------------------------------------------------
Leverage-Adjusted Duration 10.23
- --------------------------------------------------
Annualized Total Return
On Share Price On NAV
- --------------------------------------------------
1-Year -0.12% -0.66%
- --------------------------------------------------
5-Year 9.22% 6.39%
- --------------------------------------------------
Since Inception 8.00% 7.55%
- --------------------------------------------------
Taxable-Equivalent Total Return(2)
On Share Price On NAV
- --------------------------------------------------
1-Year 3.31% 3.22%
- --------------------------------------------------
5-Year 13.17% 10.47%
- --------------------------------------------------
Since Inception 11.97% 11.69%
- --------------------------------------------------
Top Five Sectors (as a % of total investments)
U.S. Guaranteed 31%
- --------------------------------------------------
Tax Obligation/Limited 19%
- --------------------------------------------------
Utilities 13%
- --------------------------------------------------
Transportation 10%
- --------------------------------------------------
Water and Sewer 9%
- --------------------------------------------------
Bar Chart:
1998-1999 Monthly Tax-Free Dividends Per Share(3)
9/98 0.086
10/98 0.086
11/98 0.083
12/98 0.083
1/99 0.083
2/99 0.083
3/99 0.083
4/99 0.083
5/99 0.083
6/99 0.083
7/99 0.083
8/99 0.083
Line Chart:
Share Price Performance
9/4/98 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
17.31
17.5
17.63
17.63
17.81
17.94
17.5
17.69
17.56
17.56
17.13
16.69
16.56
16.69
16.69
16.88
16.81
17.06
17.06
17.06
17.13
17.13
17.31
16.88
16.88
8/31/99 16.9375
Weekly Closing Price
Past performance is not predictive of future results.
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.
<PAGE>
Nuveen California Municipal Market Opportunity Fund, Inc.
Performance Overview
As of August 31, 1999
NCO
Portfolio Statistics
Inception Date 5/90
- --------------------------------------------------
Share Price $16 7/8
- --------------------------------------------------
Net Asset Value $15.06
- --------------------------------------------------
Market Yield 6.01%
- --------------------------------------------------
Taxable-Equivalent Yield
(Federal Tax Rate)(1) 8.71%
- --------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Tax Rate)(1) 9.62%
- --------------------------------------------------
Fund Net Assets ($000) $188,856
- --------------------------------------------------
Average Effective Maturity (Years) 16.59
- --------------------------------------------------
Leverage-Adjusted Duration 11.50
- --------------------------------------------------
Annualized Total Return
On Share Price On NAV
- --------------------------------------------------
1-Year 2.10% -1.97%
- --------------------------------------------------
5-Year 8.63% 6.48%
- --------------------------------------------------
Since Inception 7.99% 7.66%
- --------------------------------------------------
Taxable-Equivalent Total Return(2)
On Share Price On NAV
- --------------------------------------------------
1-Year 5.66% 1.85%
- --------------------------------------------------
5-Year 12.57% 10.48%
- --------------------------------------------------
Since Inception 11.91% 11.73%
- --------------------------------------------------
Top Five Sectors (as a % of total investments)
U.S. Guaranteed 30%
- --------------------------------------------------
Tax Obligation/Limited 24%
- --------------------------------------------------
Utilities 11%
- --------------------------------------------------
Water and Sewer 10%
- --------------------------------------------------
Healthcare 10%
- --------------------------------------------------
Bar Chart:
1998-1999 Monthly Tax-Free Dividends Per Share(3)
9/98 0.0845
10/98 0.0845
11/98 0.0845
12/98 0.0845
1/99 0.0845
2/99 0.0845
3/99 0.0845
4/99 0.0845
5/99 0.0845
6/99 0.0845
7/99 0.0845
8/99 0.0845
Line Chart:
Share Price Performance
9/4/98 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
17.56
17.75
18.13
18.13
18.19
18.19
17.94
18.06
17.94
17.5
17.06
16.75
16.63
16.81
16.56
17.13
17.19
17.38
17.44
17.38
17.38
17.38
17.5
17.19
16.94
8/31/99 16.875
Weekly Closing Price
Past performance is not predictive of future results.
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.
<PAGE>
Nuveen California Investment Quality Municipal Fund, Inc.
Performance Overview
As of August 31, 1999
NQC
Portfolio Statistics
Inception Date 11/90
- --------------------------------------------------
Share Price $16 3/16
- --------------------------------------------------
Net Asset Value $14.83
- --------------------------------------------------
Market Yield 5.89%
- --------------------------------------------------
Taxable-Equivalent Yield
(Federal Tax Rate)(1) 8.54%
- --------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Tax Rate)(1) 9.42%
- --------------------------------------------------
Fund Net Assets ($000) $310,360
- --------------------------------------------------
Average Effective Maturity (Years) 14.90
- --------------------------------------------------
Leverage-Adjusted Duration 9.98
- --------------------------------------------------
Annualized Total Return
On Share Price On NAV
- --------------------------------------------------
1-Year 1.67% -1.54%
- --------------------------------------------------
5-Year 7.35% 6.12%
- --------------------------------------------------
Since Inception 7.48% 7.44%
- --------------------------------------------------
Taxable-Equivalent Total Return(2)
On Share Price On NAV
- --------------------------------------------------
1-Year 5.15% 2.14%
- --------------------------------------------------
5-Year 11.23% 10.09%
- --------------------------------------------------
Since Inception 11.41% 11.50%
- --------------------------------------------------
Top Five Sectors (as a % of total investments)
U.S. Guaranteed 35%
- --------------------------------------------------
Transportation 16%
- --------------------------------------------------
Tax Obligation/Limited 15%
- --------------------------------------------------
Healthcare 10%
- --------------------------------------------------
Housing/Multifamily 6%
- --------------------------------------------------
Bar Chart:
1998-1999 Monthly Tax-Free Dividends Per Share(3)
9/98 0.0795
10/98 0.0795
11/98 0.0795
12/98 0.0795
1/99 0.0795
2/99 0.0795
3/99 0.0795
4/99 0.0795
5/99 0.0795
6/99 0.0795
7/99 0.0795
8/99 0.0795
Line Chart:
Share Price Performance
9/4/98 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
16.94
16.69
17.13
17.19
17.13
16.94
16.81
16.75
16.88
16.63
16.25
15.88
15.81
16.19
16.06
16.44
16.31
16.44
16.44
16.5
16.69
16.94
16.31
16.19
16.13
8/31/99 16.1875
Weekly Closing Price
Past performance is not predictive of future results.
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.
<PAGE>
Nuveen California Select Quality Municipal Fund, Inc.
Performance Overview
As of August 31, 1999
NVC
Portfolio Statistics
Inception Date 5/91
- --------------------------------------------------
Share Price $16 1/16
- --------------------------------------------------
Net Asset Value Per Share $14.80
- --------------------------------------------------
Market Yield 5.90%
- --------------------------------------------------
Taxable-Equivalent Yield
(Federal Tax Rate)(1) 8.55%
- --------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Tax Rate)(1) 9.44%
- --------------------------------------------------
Fund Net Assets ($000) $529,344
- --------------------------------------------------
Average Effective Maturity (Years) 15.77
- --------------------------------------------------
Leverage-Adjusted Duration 10.07
- --------------------------------------------------
Annualized Total Return
On Share Price On NAV
- --------------------------------------------------
1-Year 2.15% -1.20%
- --------------------------------------------------
5-Year 9.14% 6.72%
- --------------------------------------------------
Since Inception 7.65% 7.52%
- --------------------------------------------------
Taxable-Equivalent Total Return(2)
On Share Price On NAV
- --------------------------------------------------
1-Year 5.65% 2.46%
- --------------------------------------------------
5-Year 13.06% 10.65%
- --------------------------------------------------
Since Inception 11.53% 11.45%
- --------------------------------------------------
Top Five Sectors (as a % of total investments)
U.S. Guaranteed 37%
- --------------------------------------------------
Tax Obligation/Limited 15%
- --------------------------------------------------
Utilities 8%
- --------------------------------------------------
Housing/Single Family 8%
- --------------------------------------------------
Water and Sewer 7%
- --------------------------------------------------
Bar Chart:
1998-1999 Monthly Tax-Free Dividends Per Share(3)
9/98 0.079
10/98 0.079
11/98 0.079
12/98 0.079
1/99 0.079
2/99 0.079
3/99 0.079
4/99 0.079
5/99 0.079
6/99 0.079
7/99 0.079
8/99 0.079
Line Chart:
Share Price Performance
9/4/98 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
16.69
16.88
17
17.06
17.19
17
16.63
16.63
16.69
16.31
15.75
15.63
15.75
16
15.63
16.31
16.31
16.31
16.31
16.44
16.56
16.5
16.44
16
16.13
8/31/99 16.0625
Weekly Closing Price
Past performance is not predictive of future results.
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.
<PAGE>
Nuveen California Quality Income Municipal Fund, Inc.
Performance Overview
As of August 31, 1999
NUC
Portfolio Statistics
Inception Date 11/91
- --------------------------------------------------
Share Price $16 5/8
- --------------------------------------------------
Net Asset Value $15.28
- --------------------------------------------------
Market Yield 5.88%
- --------------------------------------------------
Taxable-Equivalent Yield
(Federal Tax Rate)(1) 8.52%
- --------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Tax Rate)(1) 9.41%
- --------------------------------------------------
Fund Net Assets ($000) $516,062
- --------------------------------------------------
Average Effective Maturity (Years) 14.06
- --------------------------------------------------
Leverage-Adjusted Duration 10.05
- --------------------------------------------------
Annualized Total Return
On Share Price On NAV
- --------------------------------------------------
1-Year 1.37% -0.72%
- --------------------------------------------------
5-Year 10.14% 7.33%
- --------------------------------------------------
Since Inception 7.84% 7.59%
- --------------------------------------------------
Taxable-Equivalent Total Return(2)
On Share Price On NAV
- --------------------------------------------------
1-Year 4.84% 2.97%
- --------------------------------------------------
5-Year 14.06% 11.22%
- --------------------------------------------------
Since Inception 11.67% 11.43%
- --------------------------------------------------
Top Five Sectors (as a % of total investments)
U.S. Guaranteed 45%
- --------------------------------------------------
Tax Obligation/Limited 20%
- --------------------------------------------------
Tax Obligation/General 8%
- --------------------------------------------------
Utilities 5%
- --------------------------------------------------
Healthcare 5%
- --------------------------------------------------
Bar Chart:
1998-1999 Monthly Tax-Free Dividends Per Share(3)
9/98 0.0815
10/98 0.0815
11/98 0.0815
12/98 0.0815
1/99 0.0815
2/99 0.0815
3/99 0.0815
4/99 0.0815
5/99 0.0815
6/99 0.0815
7/99 0.0815
8/99 0.0815
Line Chart:
Share Price Performance
9/4/98 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
17.31
17.63
17.75
17.75
17.81
17.63
17.5
17.63
17.5
17.13
16.25
16.19
16.38
16.56
16.25
16.81
16.63
16.88
16.75
16.81
17
16.75
16.94
16.63
16.69
8/31/99 16.625
Weekly Closing Price
Past performance is not predictive of future results.
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.
<PAGE>
Nuveen California Dividend Advantage Municipal Fund
Performance Overview
As of August 31, 1999
NAC
Portfolio Statistics
Inception Date 5/99
- --------------------------------------------------
Share Price $15
- --------------------------------------------------
Net Asset Value $13.33
- --------------------------------------------------
Market Yield 5.76%
- --------------------------------------------------
Taxable-Equivalent Yield
(Federal Tax Rate)(1) 8.35%
- --------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Tax Rate)(1) 9.22%
- --------------------------------------------------
Fund Net Assets ($000) $486,367
- --------------------------------------------------
Average Effective Maturity (Years) 27.05
- --------------------------------------------------
Leverage-Adjusted Duration 20.59
- --------------------------------------------------
Total Return
On Share Price On NAV
- --------------------------------------------------
Since Inception 0.96% -5.99%
- --------------------------------------------------
Taxable-Equivalent Total Return(2)
On Share Price On NAV
- --------------------------------------------------
Since Inception 1.54% -5.38%
- --------------------------------------------------
Top Five Sectors (as a % of total investments)
Tax Obligation/Limited 26%
- --------------------------------------------------
Water and Sewer 14%
- --------------------------------------------------
Utilities 14%
- --------------------------------------------------
Housing/Multifamily 12%
- --------------------------------------------------
Transportation 11%
- --------------------------------------------------
Bar Chart:
1999 Monthly Tax-Free Dividends Per Share
7/99 0.072
8/99 0.072
Line Chart:
Share Price Performance
5/28/99 15.1875
15.125
15.0625
15.13
15.06
15.13
15.06
15.06
15
15.06
15
15
15.03
8/31/99 15
Weekly Closing Price
Past performance is not predictive of future results.
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.
<PAGE>
Report of Independent Auditors
The Board of Directors/Trustees and Shareholders
Nuveen California Municipal Value Fund, Inc.
Nuveen California Performance Plus Municipal Fund, Inc.
Nuveen California Municipal Market Opportunity Fund, Inc.
Nuveen California Investment Quality Municipal Fund, Inc.
Nuveen California Select Quality Municipal Fund, Inc.
Nuveen California Quality Income Municipal Fund, Inc.
Nuveen California Dividend Advantage Municipal Fund
We have audited the accompanying statements of net assets, including the
portfolios of investments, of Nuveen California Municipal Value Fund, Inc.,
Nuveen California Performance Plus Municipal Fund, Inc., Nuveen California
Municipal Market Opportunity Fund, Inc., Nuveen California Investment Quality
Municipal Fund, Inc., Nuveen California Select Quality Municipal Fund, Inc.,
Nuveen California Quality Income Municipal Fund, Inc., and Nuveen California
Dividend Advantage Municipal Fund as of August 31, 1999, and the related
statements of operations, changes in net assets and the financial highlights for
the periods indicated therein. These financial statements and financial
highlights are the responsibility of the Funds' management. Our responsibility
is to express an opinion on these financial statements and financial highlights
based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of investments owned as of
August 31, 1999, by correspondence with the custodian and brokers. An audit also
includes assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial positions of
Nuveen California Municipal Value Fund, Inc., Nuveen California Performance Plus
Municipal Fund, Inc., Nuveen California Municipal Market Opportunity Fund, Inc.,
Nuveen California Investment Quality Municipal Fund, Inc., Nuveen California
Select Quality Municipal Fund, Inc., Nuveen California Quality Income Municipal
Fund, Inc., and Nuveen California Dividend Advantage Municipal Fund at August
31, 1999, and the results of their operations, changes in their net assets and
financial highlights for the periods indicated therein in conformity with
generally accepted accounting principles.
Chicago, Illinois
October 15, 1999
<PAGE>
<TABLE>
Portfolio of Investments
Nuveen California Municipal Value Fund, Inc. (NCA)
August 31, 1999
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Education and Civic Organizations - 1.4%
$ 1,835,000 ABAG Finance Authority for Nonprofit Corporations (California), 7/01 at 102 Aa2 $1,950,899
1991 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 1,586,370
Development Authority, San Diego Space and Science Foundation,
Series 1996, 7.500%, 12/01/26
- -----------------------------------------------------------------------------------------------------------------------------------
Health Care - 3.5%
1,000,000 City of Arcadia, California, Hospital Revenue Bonds, (Methodist 11/02 at 102 A 1,051,010
Hospital of Southern California), Series 1992, 6.500%, 11/15/12
2,500,000 City of Modesto, Insured Health Facility Revenue Bonds 6/07 at 102 AAA 2,376,950
(Memorial Hospital Association), Series 1997B, 5.250%, 6/01/21
2,370,000 City of Pasadena, Insured Health Facilities Revenue Bonds (Pacific 12/99 at 100 AA- 2,372,015
Clinics), Series 1988A, 8.200%, 6/01/18
1,265,000 San Benito Hospital District, Insured Health Facility Revenue 12/01 at 102 AA- 1,363,746
Bonds, Series 1991A, 6.750%, 12/01/21
1,440,000 City of Stockton, California, Health Facility Revenue Bonds, 12/07 at 102 BBB+ 1,421,568
Dameron Hospital Association, 1997 Series A, 5.300%, 12/01/08
- -----------------------------------------------------------------------------------------------------------------------------------
Housing/Multifamily - 4.3%
3,850,000 California Statewide Communities Development Authority, 7/09 at 102 N/R 3,714,326
Multifamily Housing Revenue Bonds (Harbor City Lights Project),
Series 1999Y, 6.650%, 7/01/39 (Alternative Minimum Tax)
5,000,000 California Statewide Communities Development Authority, No Opt. Call BBB+ 4,947,900
Multifamily Housing Refunding Bonds (Archstone Pelican Point
Apartments), Issue 1999H, Archstone Communities Trust,
5.300%, 6/01/29 (Mandatory put 6/01/08)
510,000 County of Riverside (California), Mobile Home Park Revenue Bonds 3/09 at 102 N/R 486,362
(Bravo Mobile Home Park Project), Series 1999B, 6.500%, 3/20/29
1,440,000 San Dimas Housing Authority, Mobile Home Park Revenue Bonds 7/08 at 102 N/R 1,354,709
(Charter Oak Mobile Home Estates Acquisition Project),
Series 1998A, 5.700%, 7/01/28
- -----------------------------------------------------------------------------------------------------------------------------------
Housing/Single Family - 8.1%
3,190,000 California Housing Finance Agency, Home Mortgage Revenue Bonds, 8/07 at 102 AAA 3,136,344
1997 Series H, 5.500%, 8/01/17
2,765,000 California Housing Finance Agency, Home Mortgage Revenue Bonds, 8/05 at 102 AAA 2,829,231
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 3,083,430
1995 Series J, 6.000%, 8/01/17
1,425,000 California Housing Finance Agency, Single Family Mortgage 8/07 at 101 1/2 AAA 1,371,064
Bonds II, 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 2,253,746
1995 Series M, 6.050%, 8/01/15 (Alternative Minimum Tax)
515,000 California Rural Home Mortgage Finance Authority, Single No Opt. Call Aaa 563,910
Family Mortgage Revenue Bonds (Mortgage-Backed Securities
Program), 1993 Issue A Series 2, 7.950%, 12/01/24
(Alternative Minimum Tax)
2,600,000 California Rural Home Mortgage Finance Authority, Single No Opt. Call AAA 2,831,088
Family Mortgage Revenue Bonds (Mortgage-Backed Securities
Program), 1997 Series D, 6.700%, 5/01/29 (Alternative Minimum Tax)
2,225,000 California Rural Home Mortgage Finance Authority, Single Family No Opt. Call AAA 2,335,716
Mortgage Revenue Bonds (Mortgage-Backed Securities Program),
1998 Series A, 6.350%, 12/01/29 (Alternative Minimum Tax)
1,460,000 Southern California Home Financing Authority, Single Family No Opt. Call AAA 1,535,832
Mortgage Revenue Bonds (GNMA Mortgage-Backed Securities
Program), 1988 Issue A, 8.125%, 2/01/21 (Alternative Minimum Tax)
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Long-Term Care - 1.8%
$ 2,720,000 Revenue Refunding Certificates of Participation (American Baptist 10/07 at 102 BBB $2,573,746
Homes of the West Facilities Project), Series 1997A,
5.750%, 10/01/17
2,000,000 Riverside County (California), Public Financing Authority, 5/09 at 101 BBB- 1,891,700
Certificates of Participation, Air Force Village West, Inc,
5.750%, 5/15/19
- -----------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/General - 8.5%
1,885,000 State of California, Various Purpose General Obligation No Opt. Call AA- 2,182,114
Bonds, 7.000%, 8/01/08
13,000,000 State of California, Various Purpose General Obligation 8/09 at 101 AAA 11,760,320
Bonds, 5.000%, 8/01/29
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 1,189,220
1,235,000 5.875%, 7/01/24 7/05 at 102 3/8 AAA 1,270,667
2,000,000 Lucia Mar Unified School District, San Luis Obispo County, California, 8/07 at 102 AAA 1,954,920
Election 1997 General Obligation Bonds, Series A, 5.400%, 8/01/22
2,325,000 Temecula Valley Unified School District, County of Riverside, 9/06 at 102 AAA 2,387,566
California, 1990 General Obligation Bonds, Series F,
6.000%, 9/01/20
- -----------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited - 28.0%
2,895,000 Certificates of Participation (1991 Financing Project), County of 9/06 at 102 AAA 2,983,153
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 4,022,460
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 1/06 at 100 AAA 8,604,540
Bonds (Department of Corrections), 1996 Series A (California
Substance Abuse Treatment Facility and State Prison at Corcoran
(Corcoran II)), 5.250%, 1/01/21
6,000,000 Community Facilities District No. 98-2 of the Capistrano, 9/09 at 102 N/R 5,661,420
Unified School District (Ladera), California, Series 1999,
Special Tax Bonds, 5.750%, 9/01/29
3,995,000 Chino Unified School District, Certificates of Participation 9/05 at 102 AAA 4,098,191
(1995 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 2,726,668
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 9/07 at 102 N/R 2,064,680
Addition Project Area, 1997 Tax Allocation Refunding Bonds,
6.700%, 9/01/14
915,000 Inglewood Public Finance Authority, 1992 Revenue Bonds, 5/02 at 102 BBB 986,489
Series B (In-Town, Manchester-Prairie and North Inglewood
Industrial Park Redevelopment Project-Redevelopment Loans),
7.000%, 5/01/22
2,000,000 Los Angeles Convention and Exhibition Center Authority, Lease 8/03 at 102 AAA 1,884,360
Revenue 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 7/05 at 102 AAA 1,000,860
(California), Proposition C Sales Tax Revenue Bonds, Second
Senior Bonds, Series 1995-A, 5.500%, 7/01/17
4,735,000 City of Milpitas, Limited Obligation Improvement Bonds, 9/99 at 103 N/R 4,570,364
Local 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 3,331,251
1993 Tax Allocation Revenue Bonds (California), 6.125%, 9/01/23
5,000,000 Palm Desert Financing Authority, California, Tax Allocation Refunding 4/02 at 100 AAA 5,010,750
Revenue Bonds (Project Area No. 1, As Amended),
Series 1997, 5.625%, 4/01/23
1,000,000 Riverside County Public Financing Authority, 1997 Lease Revenue 10/07 at 102 AAA 970,370
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 1,446,960
Local Project, Capital Assessment District No. 2 Bonds,
Series 1995, 5.375%, 10/01/25
5,000,000 Salida Area Public Facilities Financing Agency (Stanislaus County, 9/07 at 102 AAA 4,719,750
California), Community Facilities District No. 1988-1, Special Tax
Bonds, Series 1997, 5.250%, 9/01/28
8,000,000 Redevelopment Agency of the City of San Jose, Merged Area 2/04 at 102 AAA 7,389,280
Redevelopment Project, Tax Allocation Bonds, Series 1993,
5.000%, 8/01/20
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Tax Obligation/Limited (continued)
$ 1,700,000 Shafter Joint Powers Financing Authority, Lease Revenue Bonds, 1/07 at 101 A2 $1,771,655
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 1,006,110
1,000,000 6.200%, 8/01/15 8/05 at 102 N/R 1,005,830
2,570,000 Vista Joint Powers Financing Authority, Special Tax Lease Revenue 9/05 at 102 N/R 2,496,138
Refunding Bonds, 1997 Series A (California), 5.875%, 9/01/20
1,000,000 Vista Joint Powers Financing Authority, Special Tax Lease Revenue 1/00 at 100 N/R 950,470
Refunding Bonds, 1997 Series B (California), 5.500%, 9/01/20
- -----------------------------------------------------------------------------------------------------------------------------------
Transportation - 10.2%
20,000,000 Foothill/Eastern Transportation Corridor Agency (California), 1/14 at 101 BBB- 10,594,200
Toll Road Refunding Revenue Bonds, Series 1999, 0.000%, 1/15/27
3,000,000 Port Of Oakland, California, Revenue Bonds, 1997 Series G, 11/07 at 102 AAA 2,877,840
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 5,428,567
San Francisco International Airport, Second Series Revenue
Bonds, Issue 10, 5.625%, 5/01/21 (Alternative Minimum Tax)
5,925,000 Airports Commission, City and County of San Francisco, California, 5/05 at 101 AAA 6,121,651
San Francisco International Airport, Second Series Revenue
Bonds, Issue 11 (Noise Insulation Program), 6.200%, 5/01/19
(Alternative Minimum Tax)
- -----------------------------------------------------------------------------------------------------------------------------------
U.S. Guaranteed - 21.5%
1,000,000 California Health Facilities Financing Authority, Health Facility 5/00 at 102 Aaa 1,044,390
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, Health Facility 7/01 at 102 AA-*** 1,608,105
Revenue Bonds (St. Joseph Health System), 1991 A,
7.000%, 7/01/10 (Pre-refunded to 7/01/01)
5,000,000 California Statewide Communities Development Authority, 4/03 at 102 N/R*** 5,381,600
Series A, Certificates of Participation, Pacific Homes,
6.000%, 4/01/17 (Pre-refunded to 4/01/03)
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 1,486,785
1,725,000 7.200%, 6/01/10 (Pre-refunded to 12/01/00) 12/00 at 101 7/8 AAA 1,829,587
2,750,000 Campbell Union School District, Santa Clara County, California, 8/04 at 102 AAA 3,038,283
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 Revenue No Opt. Call AAA 2,690,406
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 7/00 at 102 N/R*** 1,542,162
Redevelopment Project), 1991 Tax Allocation Bonds (Bank
Qualified) 7.250%, 7/01/21 (Pre-refunded to 7/01/00)
905,000 Inglewood Public Finance Authority, 1992 Revenue Bonds, 5/02 at 102 A-*** 976,423
Series C (In-Town, Manchester and North Inglewood Industrial
Park-Redevelopment Projects-Housing Set-Aside Loans),
7.000%, 5/01/22 (Pre-refunded to 5/01/02)
2,500,000 The Community Redevelopment Agency of the City of 7/00 at 100 BBB*** 2,524,950
Los Angeles, 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 10,626,124
Certificates of Participation, Series 1985, 9.000%, 12/01/20
(Pre-refunded to 12/01/05)
1,000,000 Los Angeles County Metropolitan Transportation Authority 7/06 at 101 AAA 1,082,900
(California), Sales Tax Revenue Refunding Bonds, Proposition A-
2nd Tier, Series 1996, 5.750%, 7/01/18 (Pre-refunded to 7/01/06)
4,000,000 Modesto Irrigation District Financing Authority, Domestic Water 9/05 at 102 AAA 4,353,640
Project 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 No Opt. Call AAA 3,219,584
Bonds (GNMA Mortgage-Backed Securities Program),
Series 1988A, 0.000%, 3/01/17
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
U.S. Guaranteed (continued)
$ 20,415,000 County of San Bernardino, California, Single Family Mortgage No Opt. Call Aaa $5,708,442
Revenue 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 9/02 at 102 AAA 5,545,102
Bonds (Multiple Purpose Projects), Series A, 6.875%, 9/01/16
(Pre-refunded to 9/01/02)
- -----------------------------------------------------------------------------------------------------------------------------------
Utilities - 4.0%
3,000,000 California Statewide Communities Development Authority, 12/04 at 102 N/R 2,916,960
Certificates of Participation (Rio Bravo Fresno Project),
1999 Series A, 6.300%, 12/01/18
1,100,000 Department of Water and Power of the City of Los Angeles 5/00 at 102 Aa3 1,145,771
(California), Electric Plant Revenue Bonds, Issue of 1990,
7.125%, 5/15/30
3,000,000 Merced Irrigation District (California), 1998 Revenue Certificates 3/03 at 102 N/R 2,913,270
of Participation (1998 Electric System Project), 6.300%, 3/01/19
3,000,000 Southern California Public Power Authority, Transmission Project 7/03 at 100 AAA 2,760,360
Revenue Bonds, 1993 Subordinate Refunding Series (Southern
Transmission Project), 5.000%, 7/01/22
- -----------------------------------------------------------------------------------------------------------------------------------
Water and Sewer - 7.2%
2,015,000 Azusa Public Financing Authority (California), Revenue Bonds, 7/03 at 102 AAA 1,850,636
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 5,234,600
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 2,009,940
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 6,774,430
1993 Revenue Bonds, 4.750%, 12/01/23
1,925,000 San Jacinto Financing Authority, Revenue Bonds (California), 4/07 at 102 AAA 1,923,764
Series 1997 (Water Improvement Project), 5.500%, 10/01/18
- -----------------------------------------------------------------------------------------------------------------------------------
$ 270,395,000 Total Investments - (cost $234,019,486) - 98.5% 241,688,690
=============
Other Assets Less Liabilities - 1.5% 3,767,222
-------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $245,455,912
===================================================================================================================
* Optional Call Provisions (not covered by the report of
independent auditors): Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings (not covered by the report of independent
auditors): Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. government or U.S. government agency
securities which ensures the timely payment of
principal and interest. Securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
Portfolio of Investments
Nuveen California Performance Plus Municipal Fund, Inc. (NCP)
August 31, 1999
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Education and Civic Organizations - 0.8%
$ 1,500,000 California Educational Facilities Authority, Revenue Bonds (University 10/06 at 102 AAA $1,540,575
of San Francisco), Series 1996, 6.000%, 10/01/26
1,000,000 State Public Works Board of California, Lease Revenue Bonds 10/07 at 102 A+ 959,840
(Various California State University Project), 1997 Series C,
5.400%, 10/01/22
- -----------------------------------------------------------------------------------------------------------------------------------
Health Care - 3.2%
2,780,000 California Health Facilities Financing Authority, Insured Health 5/03 at 102 N/R 2,835,127
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 2,369,325
4,720,000 5.000%, 2/01/23 2/03 at 100 Baa1 4,098,140
- -----------------------------------------------------------------------------------------------------------------------------------
Housing/Multifamily - 7.2%
California Statewide Communities Development Authority,
Apartment Development Revenue Refunding Bonds (Irvine Apartment
Communities, L.P.), Series 1998A:
1,500,000 5.250%, 5/15/25 (Mandatory put 5/15/13) 7/08 at 101 BBB 1,443,150
9,000,000 5.100%, 5/15/25 (Mandatory put 5/15/10) 7/08 at 101 BBB 8,640,360
5,000,000 4.900%, 5/15/25 (Mandatory put 5/15/08) 7/08 at 101 BBB 4,817,700
3,915,000 The City of Los Angeles Multifamily Housing Revenue Bonds 3/07 at 102 AAA 4,019,570
(GNMA Collateralized--Ridgecroft Apartments Project),
Series 1997E, 6.250%, 9/20/39 (Alternative Minimum Tax)
2,285,000 Community Development Commission of the County of Los Angeles, 5/03 at 100 Aaa 2,340,708
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 - 2.5%
3,240,000 California Housing Finance Agency, Home Mortgage Revenue 2/00 at 102 Aa 3,321,194
Bonds, 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 Aa2 2,332,000
1995 Series B, 7.125%, 2/01/26 (Alternative Minimum Tax)
1,665,000 Southern California Home Financing Authority, Single Family 10/00 at 102 AAA 1,719,129
Mortgage Revenue Bonds (GNMA Mortgage-Backed Securities
Program), 1990 Issue A, 7.625%, 10/01/23 (Alternative Minimum Tax)
- -----------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/General - 3.9%
State of California, Various Purpose General Obligation Bonds:
4,000,000 5.000%, 8/01/24 8/09 at 101 AAA 3,651,960
1,500,000 5.000%, 8/01/29 8/09 at 101 AAA 1,356,960
5,500,000 Hawthorne School District (Los Angeles County, California), 11/08 at 102 AAA 5,467,825
General Obligation Bonds, 1997 Election, Series A, 5.500%, 5/01/22
1,000,000 Pomona Unified School District, General Obligation Refunding Bonds, 8/11 at 103 AAA 1,079,840
Series 1997-A, 6.150%, 8/01/15
- -----------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited - 19.1%
1,000,000 Certificates of Participation (Town Center Project), Town of 9/05 at 102 A 1,051,730
Apple Valley (San Bernardino County, California), 6.375%, 9/01/15
1,850,000 City of Coalinga, California, Certificates of Participation 4/00 at 102 BBB+ 1,913,159
(1989 Coalinga Return to Custody Facility), 7.000%, 4/01/10
2,000,000 Cudahy Redevelopment Agency, Cudahy Redevelopment Project, 9/03 at 102 BBB 2,107,180
Tax 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+ 3,115,200
1990 Local Agency Revenue Bonds, Series A, 7.250%, 10/01/10
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Tax Obligation/Limited (continued)
$ 3,000,000 Fontana Public Financing Authority (San Bernardino County, 9/00 at 102 BBB $3,107,700
California), 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 6/00 at 102 Baa 2,616,875
(1990 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 3,371,305
Home Park Project), Series 1998A (California), 5.700%, 3/01/28
5,000,000 Los Angeles County Metropolitan Transportation Authority 7/03 at 100 AAA 4,621,350
(California), 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 2,521,260
2,500,000 7.500%, 6/01/21 6/01 at 102 BB 2,588,625
8,800,000 County of Orange, California, 1996 Recovery Certificates of 7/06 at 102 AAA 9,032,584
Participation, Series A, 6.000%, 7/01/26
2,780,000 Pleasanton Joint Powers Financing Authority, Reassessment Revenue 9/03 at 102 Baa1 2,916,025
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 960,450
Hill Redevelopment Project, 1997 Tax Allocation Refunding Bonds,
Series S, 5.750%, 6/01/16
2,905,000 Redevelopment Agency of the City of San Jose (California), Merged 8/08 at 102 A 2,681,112
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 6/03 at 102 A 6,514,643
Authority, Certificates of Participation (1993 Seismic Retrofit
Financing Project), 5.950%, 6/01/23
San Marcos Unified School District (California), Community Facilities
District No. 5 (Rancho Carillo), Series 1999 Special Tax Bonds:
1,000,000 5.500%, 9/01/18 9/99 at 103 N/R 930,390
2,250,000 5.600%, 9/01/29 9/99 at 103 N/R 2,071,418
1,000,000 City of Stockton, Mello-Roos Revenue Bonds, Series 1998A, 9/06 at 102 N/R 977,020
Community 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 1,390,893
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 1,823,763
1997 Series A (Community Correctional Facility Acquisition Project),
5.950%, 1/01/11
- -----------------------------------------------------------------------------------------------------------------------------------
Transportation - 9.6%
Foothill/Eastern Transportation Corridor Agency (California), Toll Road
Refunding Revenue Bonds, Series 1999:
5,600,000 0.000%, 1/15/28 1/14 at 101 BBB- 2,957,080
20,000,000 0.000%, 1/15/29 1/14 at 101 BBB- 10,550,000
1,320,000 County of Orange, California, Airport Revenue Refunding Bonds, 7/07 at 102 AAA 1,358,042
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 8,379,600
8.000%, 11/01/00
5,000,000 Airport Commission, of the City and County of San Francisco, 5/05 at 101 AAA 5,193,750
California, San Francisco International Airport, Second Series
Revenue Bonds, Issue 11 (Noise Insulation Program), 6.250%, 5/01/26
(Alternative Minimum Tax)
- -----------------------------------------------------------------------------------------------------------------------------------
U.S. Guaranteed - 30.8%
6,080,000 City of Anaheim, California, Certificates of Participation, 5/00 at 102 AAA 6,349,587
Anaheim 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 2,120,320
(St. Mary's College of California Project), Series 1990,
7.500%, 10/01/20 (Pre-refunded to 10/01/00)
5,500,000 California Health Facilities Financing Authority, Health Facility 1/00 at 102 N/R*** 5,719,175
Revenue Bonds (Pomona Valley Hospital Medical Center),
1989 Series A, 9.750%, 1/01/19 (Pre-refunded to 1/01/00)
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
U.S. Guaranteed (continued)
$ 6,500,000 California Health Facilities Financing Authority, Insured Hospital 7/00 at 102 AAA $6,807,515
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 4,356,947
5,000,000 7.500%, 5/01/15 (Pre-refunded to 5/01/00) 5/00 at 102 Aaa 5,226,050
4,800,000 California Health Facilities Financing Authority, Health Facility 10/00 at 102 N/R*** 5,082,912
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 Bonds, 3/05 at 101 AA-*** 6,129,342
5.750%, 3/01/14 (Pre-refunded to 3/01/05)
3,000,000 California Statewide Communities Development Authority No Opt. Call N/R*** 3,212,610
(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 1,589,130
1,610,000 7.150%, 6/01/09 (Pre-refunded to 12/01/00) 12/00 at 101 7/8 AAA 1,706,632
4,000,000 Contra Costa Water District (Contra Costa County, California), 10/00 at 102 N/R*** 4,204,240
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 5,211,440
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 3,169,260
Corporation Project), Series 1990 (California), 8.100%, 7/01/20
(Pre-refunded to 7/01/00)
10,000,000 East Bay Municipal Utility District (Alameda and Contra 6/00 at 102 AAA 10,485,900
Costa Counties, California), Water System Subordinated
Revenue Bonds, Series 1990, 7.500%, 6/01/18
(Pre-refunded to 6/01/00)
3,000,000 Foothill/Eastern Transportation Corridor Agency (California), 1/07 at 100 BBB-*** 3,259,680
Toll Road Revenue Bonds, Series 1995A, 6.000%, 1/01/34
(Pre-refunded to 1/01/07)
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*** 1,766,878
1,765,000 6.700%, 5/01/09 (Pre-refunded to 5/01/00) 5/00 at 102 A2*** 1,835,582
2,000,000 LaQuinta Redevelopment Agency, LaQuinta Redevelopment Project, 9/00 at 102 AAA 2,131,920
Tax Allocation Refunding Bonds, Series 1990, 8.400%, 9/01/12
(Pre-refunded to 9/01/00)
4,630,000 County of Sacramento (California), Airport System and Subordinated 7/06 at 102 AAA 5,115,641
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-*** 2,802,693
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 N/R*** 2,682,225
Revenue Bonds, Series 1992, 6.400%, 3/01/22
(Pre-refunded to 3/01/02)
- -----------------------------------------------------------------------------------------------------------------------------------
Utilities - 12.7%
10,250,000 California Pollution Control Financing Authority, Solid Waste 7/07 at 102 N/R 10,664,510
Disposal Revenue Bonds (CanFibre of Riverside Project),
Tax-Exempt Series 1997A, 9.000%, 7/01/19
(Alternative Minimum Tax)
5,160,000 California Statewide Communities Development Authority, 12/04 at 102 N/R 5,017,171
Certificates of Participation Refunding (Rio Bravo Fresno Project),
1999 Series A, 6.300%, 12/01/18
12,600,000 City of Chula Vista, Industrial Development Revenue Bonds 12/02 at 102 AAA 13,369,734
(San Diego Gas and Electric Company), 1992 Series A,
6.400%, 12/01/27 (Alternative Minimum Tax)
4,545,000 Department of Water and Power of the City of Los Angeles 10/03 at 102 Aa3 4,059,230
(California), Electric Plant Revenue Bonds, Second Issue of 1993,
5.000%, 10/15/33
4,410,000 Stanislaus County Waste-to-Energy Financing Agency, Solid 1/00 at 102 A- 4,526,556
Waste Facility Refunding Revenue Certificates (Ogden Martin
System of Stanislaus, Inc. Project), Series 1990, 7.625%, 1/01/10
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Water and Sewer - 8.5%
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 $2,709,600
4,270,000 4.500%, 5/15/18 5/03 at 102 AA 3,630,183
8,500,000 The Metropolitan Water District of Southern California, 7/06 at 100 AAA 7,483,485
Water Revenue Refunding Bonds, 1996 Series B, 4.750%, 7/01/21
5,000,000 Orange County Water District (California), Series 1993A Revenue 8/03 at 100 AA 4,638,400
Certificates of Participation, 5.000%, 8/15/18
3,500,000 Public Facilities Financing Authority of the City of San Diego 5/09 at 101 AAA 3,167,010
(California), Sewer Revenue Bonds, Series 1999B, 5.000%, 5/15/29
4,585,000 City of Santa Maria, California, Water and Wastewater Revenue 8/12 at 101 AAA 3,347,464
Subordinate Certificates of Participation, Series 1997A,
0.000%, 8/01/27
- -----------------------------------------------------------------------------------------------------------------------------------
$ 300,315,000 Total Investments - (cost $279,141,377) - 98.3% 290,323,579
=============
Other Assets Less Liabilities - 1.7% 5,004,508
-------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $295,328,087
===================================================================================================================
* Optional Call Provisions (not covered by the report of
independent auditors): Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings (not covered by the report of independent
auditors): Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. government or U.S. government agency
securities which ensures the timely payment of
principal and interest. Securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
Portfolio of Investments
Nuveen California Municipal Market Opportunity Fund, Inc. (NCO)
August 31, 1999
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Education and Civic Organizations - 3.7%
$ 6,500,000 California Educational Facilities Authority, Refunding Revenue Bonds 1/08 at 101 AAA $5,969,730
(Stanford University), Series O, 5.125%, 1/01/31
1,000,000 California Educational Facilities Authority, Revenue Bonds 10/06 at 102 AAA 1,027,050
(University of San Francisco), Series 1996, 6.000%, 10/01/26
- -----------------------------------------------------------------------------------------------------------------------------------
Health Care - 9.4%
750,000 California Health Facilities Financing Authority, Kaiser Permanente 10/99 at 102 A 767,093
Revenue Bonds, 1989 Series A, 7.000%, 10/01/18
2,000,000 California Health Facilities Financing Authority, Insured Health 5/03 at 102 N/R 2,039,660
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 5,904,100
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 N/R 5,940,329
3,000,000 6.500%, 12/01/18 12/03 at 102 N/R 3,025,620
- -----------------------------------------------------------------------------------------------------------------------------------
Housing/Multifamily - 3.7%
5,675,000 California Statewide Communities Development Authority, 7/08 at 101 BBB 5,459,918
Apartment Development Revenue Refunding Bonds (Irvine
Apartment Communities, L.P.), Series 1998A, 5.250%, 5/15/25
(Mandatory put 5/15/13)
1,550,000 Housing Authority of the County of San Bernardino (California), No Opt. Call A3 1,525,386
Multifamily Housing Revenue Refunding Bonds (Equity
Residential/Redlands Lawn and Tennis Apartments), Issue 1999A,
5.200%, 6/15/29 (Mandatory put 6/15/09)
- -----------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/General - 2.4%
3,000,000 State of California, Various Purpose General Obligation Bonds, 8/09 at 101 AAA 2,713,920
5.000%, 8/01/29
725,000 Fresno Unified School District (Fresno County, California), 2/13 at 103 AAA 808,658
1998 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 1,079,840
Series 1997-A, 6.150%, 8/01/15
- -----------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited - 23.4%
2,975,000 California Statewide Communities Development Authority, 11/03 at 102 N/R 2,836,692
Certificates of Participation (Wildwood Elementary School Project),
1999 Series A, 6.100%, 11/01/15
5,000,000 Fontana Public Financing Authority (San Bernardino County, 9/00 at 102 BBB 5,179,500
California), Tax Allocation Revenue Bonds (North Fontana
Redevelopment Project), 1990 Series A, 7.250%, 9/01/20
1,440,000 Inglewood Redevelopment Agency (City of Inglewood, Los Angeles No Opt. Call BBB 1,447,992
County, California), Century Redevelopment Project,
1993 Tax Allocation Bonds, Series A, 5.900%, 7/01/03
3,250,000 Lake Elsinore School Financing Authority (California), 1998 Special 9/08 at 101 N/R 3,065,108
Tax Revenue Bonds (Horsethief Canyon), 5.625%, 9/01/16
2,000,000 County of Mendocino (California), Certificates of Participation, 8/03 at 102 A 2,016,340
Series 1993 (Mendocino County Public Facilities Financing
Corporation), 6.000%, 8/15/23
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 2,577,975
2,000,000 7.500%, 6/01/21 6/01 at 102 BB 2,070,900
1,000,000 City of Ontario, Community Facilities District No. 5 (Freeway 9/06 at 102 N/R 1,014,960
Interchange Project), Special Tax Bonds, Series 1997, 6.375%, 9/01/17
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Tax Obligation/Limited (continued)
$ 10,900,000 Ontario Redevelopment Financing Authority (San Bernardino No Opt. Call AAA $13,679,718
County, 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 2,227,399
Series 1995 (Medical Center Financing Project), 5.500%, 8/01/22
1,065,000 Redevelopment Agency of Suisun City, Suisun City 10/03 at 102 AAA 1,081,241
Redevelopment Project, 1993 Tax Allocation Refunding Bonds
(County of Solano, California), 5.900%, 10/01/23
7,000,000 Community Redevelopment Agency of Union City (California), 10/09 at 101 AAA 7,013,790
Redevelopment Project Tax Allocation Bonds, Series 1999,
5.750%, 10/01/32
- -----------------------------------------------------------------------------------------------------------------------------------
Transportation - 4.9%
4,000,000 Harbor Department of the City of Los Angeles, Revenue Bonds, 8/02 at 102 AA 4,260,880
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 5,038,850
Series 1996, 5.900%, 7/01/24 (Alternative Minimum Tax)
- -----------------------------------------------------------------------------------------------------------------------------------
U.S. Guaranteed - 29.6%
1,900,000 California Health Facilities Financing Authority, Insured Hospital 10/00 at 102 AAA 2,013,468
Revenue Bonds (Childrens 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 5,226,050
Revenue Bonds (Health Dimensions, Incorporated), 1990 Series A,
7.500%, 5/01/15 (Pre-refunded to 5/01/00)
3,000,000 California Statewide Communities Development Authority No Opt. Call N/R*** 3,212,610
(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 5,256,250
Series 1990, Castaic Lake Water Agency, California,
7.125%, 8/01/16 (Pre-refunded to 8/01/00)
3,300,000 Contra Costa Water Authority (Contra Costa County, California), 10/00 at 102 N/R*** 3,475,362
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 Hospital 7/00 at 102 AAA 5,282,100
Corporation Project), Series 1990 (California),
8.100%, 7/01/20 (Pre-refunded to 7/01/00)
1,000,000 Foothill/Eastern Transportation Corridor Agency (California), 1/07 at 100 BBB-*** 1,086,560
Toll Road Revenue Bonds, Series 1995A,
6.000%, 1/01/34 (Pre-refunded to 1/01/07)
5,000,000 The City of Los Angeles (California), Los Angeles Convention 8/00 at 102 AAA 5,256,400
and Exhibition Center, Certificates of Participation, 1990 Series,
7.000%, 8/15/21 (Pre-refunded to 8/15/00)
4,000,000 Orange County Water District (1990 Project A), Certificates of 8/00 at 102 AAA 4,205,120
Participation (California), 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-*** 4,284,444
2,000,000 7.875%, 10/01/15 (Pre-refunded to 10/01/00) 10/00 at 102 A-*** 2,127,100
4,000,000 City of Pomona, California, Single Family Mortgage Revenue No Opt. Call AAA 4,901,000
Refunding 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 2,622,140
Series 1995 (Medical Center Financing Project),
5.500%, 8/01/22 (Pre-refunded to 8/01/05)
2,000,000 Sierra View Local Hospital District, Insured Health Facility Revenue 3/02 at 102 N/R*** 2,145,780
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 9/00 at 101 A-*** 4,775,970
Revenue Bonds (Hacienda Drive and Buena Vista Creek),
6.100%, 9/01/20 (Pre-refunded to 9/01/00)
- -----------------------------------------------------------------------------------------------------------------------------------
Utilities - 10.5%
6,750,000 California Pollution Control Financing Authority, Solid Waste 7/07 at 102 N/R 7,022,970
Disposal Revenue Bonds (CanFibre of Riverside Project),
Tax-Exempt Series 1997A, 9.000%, 7/01/19
(Alternative Minimum Tax)
4,500,000 California Statewide Communities Development Authority, 12/04 at 102 N/R 4,375,440
Certificates of Participation (Rio Bravo Fresno Project),
1999 Series A, 6.300%, 12/01/18
8,000,000 City of Chula Vista, Industrial Development Revenue Bonds 12/02 at 102 AAA 8,488,720
(San Diego 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>
Water and Sewer - 10.0%
$ 4,000,000 The City of Los Angeles, California, Wastewater System Revenue 11/03 at 102 AAA $3,527,800
Bonds, Series 1993-D, 4.700%, 11/01/19
6,000,000 The Metropolitan Water District of Southern California, Water 7/06 at 100 AAA 5,282,460
Revenue Refunding Bonds, 1996 Series B, 4.750%, 7/01/21
3,000,000 The Metropolitan Water District of Southern California, Water 1/08 at 101 AAA 2,714,550
Revenue Bonds, 1997 Authorization, Series A, 5.000%, 7/01/30
10,000,000 City of Santa Maria, California, Water and Wastewater Revenue 8/12 at 101 AAA 7,300,900
Subordinate Certificates of Participation, Series 1997A,
0.000%, 8/01/27
- -----------------------------------------------------------------------------------------------------------------------------------
$ 182,905,000 Total Investments - (cost $175,384,761) - 97.6% 184,355,843
=============
Other Assets Less Liabilities - 2.4% 4,500,038
-------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $188,855,881
===================================================================================================================
* Optional Call Provisions (not covered by the report of
independent auditors): Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings (not covered by the report of independent
auditors): Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. government or U.S. government agency
securities which ensures the timely payment of
principal and interest. Securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
Portfolio of Investments
Nuveen California Investment Quality Municipal Fund, Inc. (NQC)
August 31, 1999
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Capital Goods - 1.8%
$ 5,500,000 California Pollution Control Financing Authority, Fixed Rate 2/01 at 103 BBB $5,737,930
Resource Recovery Revenue Bonds (Waste Management, Inc.),
1991 Composite Series A, 7.150%, 2/01/11 (Alternative Minimum Tax)
- -----------------------------------------------------------------------------------------------------------------------------------
Education and Civic Organizations - 4.1%
1,235,000 California Educational Facilities Authority, Revenue Bonds 1/01 at 102 Baa2 1,303,246
(Chapman College), Series 1991, 7.300%, 1/01/02
1,500,000 California Educational Facilities Authority, Revenue Bonds 10/06 at 102 AAA 1,540,575
(University 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 4,021,440
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 10/07 at 102 A+ 5,759,040
Revenue Bonds (Various California State University Projects),
1997 Series C, 5.400%, 10/01/22
- -----------------------------------------------------------------------------------------------------------------------------------
Health Care - 10.4%
10,000,000 California Health Facilities Financing Authority, Kaiser Permanente 12/00 at 102 A 10,580,000
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 1,501,122
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 3,080,123
7,260,000 5.500%, 2/01/15 2/03 at 102 Baa1 6,932,864
5,000,000 City of Loma Linda, California, Hospital Revenue Bonds (Loma Linda 12/03 at 102 N/R 5,042,700
University Medical Center Project), Series 1993-A, 6.500%, 12/01/18
1,000,000 City of Stockton, California, Health Facility Revenue Bonds, 12/07 at 102 BBB+ 969,220
Dameron 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 AA- 4,068,395
Revenue Bonds, Series 1998, 5.200%, 12/01/21
- -----------------------------------------------------------------------------------------------------------------------------------
Housing/Multifamily - 5.9%
California Statewide Communities Development Authority, Apartment
Development Revenue Refunding Bonds (Irvine Apartment
Communities, L.P.), Series 1998A:
6,250,000 5.250%, 5/15/25 (Mandatory put 5/15/13) 7/08 at 101 BBB 6,013,125
10,000,000 4.900%, 5/15/25 (Mandatory put 5/15/08) 7/08 at 101 BBB 9,635,400
2,430,000 City of Stanton, Multifamily Housing Revenue Bonds (Continental 8/07 at 102 AAA 2,512,912
Gardens Apartments), Series 1997, 5.625%, 8/01/29
(Alternative Minimum Tax) (Mandatory put 8/01/09)
- -----------------------------------------------------------------------------------------------------------------------------------
Housing/Single Family - 0.9%
1,525,000 Southern California Home Financing Authority, Single Family 10/99 at 103 AAA 1,571,375
Mortgage Revenue Bonds (GNMA Mortgage-Backed Securities
Program), 1989 Issue A, 7.625%, 10/01/22 (Alternative Minimum Tax)
1,190,000 Southern California Home Financing Authority, Single Family 3/01 at 102 AAA 1,234,149
Mortgage Revenue Bonds (GNMA and FNMA
Mortgage-Backed Securities Program), 1991 Issue A,
7.350%, 9/01/24 (Alternative Minimum Tax)
- -----------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/General - 1.5%
2,395,000 Fontana Unified School District, San Bernardino County, 5/09 at 102 AAA 2,312,181
California, 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 2,213,500
Series 1997-A, 6.500%, 8/01/19
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Tax Obligation/Limited - 15.1%
$ 7,000,000 Certificates of Participation (1990 Adelanto Return to Custody Facility),4/00 at 102 BBB+ $7,250,390
City of Adelanto, California, 7.100%, 4/01/10
2,195,000 Bell Community Redevelopment Agency, Bell Redevelopment 11/03 at 102 AAA 2,354,291
Project Area, 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 1,444,845
Mobile Home Park Project), Series 1998A (California), 5.700%, 3/01/28
4,500,000 Kern County Board of Education, California, Refunding Certificates 5/08 at 102 AAA 4,216,815
of Participation, 1998 Series A, 5.200%, 5/01/28
1,685,000 City of Ontario, Community Facilities District No. 5 9/06 at 102 N/R 1,710,208
(Freeway Interchange Project), Special Tax Bonds,
Series 1997, 6.375%, 9/01/17
3,600,000 Ontario Redevelopment Financing Authority (San Bernardino No Opt. Call AAA 4,518,072
County, 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 7/06 at 102 AAA 10,341,282
of Participation, Series A, 6.000%, 7/01/26
1,780,000 Palm Desert Financing Authority, Tax Allocation Revenue Bonds 10/02 at 103 AAA 1,682,776
(Project Area No. 4), Series 1998, 4.750%, 10/01/13
2,000,000 Redding Joint Powers Financing Authority, Solid Waste and 1/04 at 102 A3 2,007,780
Corporate Yard Lease Revenue Bonds, Series 1993A, 5.500%, 1/01/13
1,265,000 City of Richmond, Limited Obligation Refunding Improvement 9/99 at 103 N/R 1,304,734
Bonds, Reassessment District No. 855 (Atlas Road West
and Interchange), 6.600%, 9/02/19
9,000,000 Redevelopment Agency of the City of San Jose, Merged Area 2/04 at 102 AAA 7,853,130
Redevelopment Project, Tax Allocation Bonds, Series 1993,
4.750%, 8/01/24
2,000,000 Redevelopment Agency of the City of San Leandro, Plaza 1 6/03 at 102 A- 2,035,580
and Plaza 2 Redevelopment Projects, 1993 Tax Allocation Bonds,
Series A, 6.125%, 6/01/23
- -----------------------------------------------------------------------------------------------------------------------------------
Transportation - 16.1%
20,000,000 Alameda Corridor Transportation Authority (California), 10/09 at 101 AAA 18,088,600
Tax-Exempt Senior Lien Revenue Bonds, Series 1999A,
5.000%, 10/01/29
30,000,000 Foothill/Eastern Transportation Corridor Agency (California), 1/14 at 101 BBB- 15,825,000
Toll Road Refunding Revenue Bonds, Series 1999, 0.000%, 1/15/29
12,000,000 Airports Commission, City and County of San Francisco, 5/05 at 101 AAA 12,465,000
California, 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, 5/06 at 101 AAA 3,630,141
California, San Francisco International Airport, Second
Revenue Bonds, Issue 12A, 5.625%, 5/01/11
(Alternative Minimum Tax)
- -----------------------------------------------------------------------------------------------------------------------------------
U.S. Guaranteed - 34.7%
5,885,000 Calaveras County Water District (California), Certificates 5/01 at 102 AAA 6,277,353
of 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 2,403,983
4,395,000 7.000%, 5/01/20 (Pre-refunded to 5/01/00) 5/00 at 102 Aaa 4,579,370
8,075,000 California Health Facilities Financing Authority, Hospital Revenue 11/00 at 102 A2*** 8,532,691
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 AA-*** 13,772,235
5.750%, 3/01/13 (Pre-refunded to 3/01/05)
3,500,000 State Public Works Board of the State of California, 11/04 at 102 Aaa 3,980,865
Lease 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 N/R*** 3,212,610
(Triad Healthcare), Revenue Refunding, Series 1992,
Certificates of Participation, 6.250%, 8/01/06
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
U.S. Guaranteed (continued)
$ 5,500,000 Certificates of Participation (Open Space Acquisition Project), 4/01 at 102 N/R*** $5,869,930
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 4,750,245
Corporation Project), Series 1990 (California), 8.000%, 7/01/10
(Pre-refunded to 7/01/00)
8,650,000 Fontana Public Financing Authority (San Bernardino County, California), 12/01 at 102 N/R*** 9,503,755
Subordinate Lien Tax Allocation Revenue Bonds (North Fontana
Redevelopment Project), 1991 Series A, 7.750%, 12/01/20
(Pre-refunded to 12/01/01)
1,000,000 Foothill/Eastern Transportation Corridor Agency (California), 1/07 at 100 BBB-*** 1,086,560
Toll Road Revenue Bonds, Series 1995A, 6.000%, 1/01/34
(Pre-refunded to 1/01/07)
2,750,000 Certificates of Participation, Fresno Unified School District, 5/01 at 102 BBB+*** 2,944,673
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*** 1,091,307
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*** 2,524,950
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 5,876,365
(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 8,565,760
1990 Series A, 8.000%, 12/01/11 (Pre-refunded to 12/01/00)
8,000,000 Redevelopment Agency of the City of Pittsburgh, California, 8/01 at 103 AAA 8,697,440
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 6,905,708
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*** 3,908,415
Refunding Revenue Bonds, Series 1994, 6.500%, 11/01/17
(Pre-refunded to 11/01/04)
3,365,000 West Side Hospital District (Kern County, California), Insured 2/01 at 102 N/R*** 3,530,087
Revenue Bonds, Series 1991A, 7.500%, 2/01/23
(Pre-refunded to 2/01/01)
- -----------------------------------------------------------------------------------------------------------------------------------
Utilities - 5.4%
7,945,000 City of Chula Vista, Industrial Development Revenue Bonds 12/02 at 102 AAA 8,430,360
(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 8,443,832
California, Electric Plant Revenue Bonds, Issue of 1991,
7.100%, 1/15/31
- -----------------------------------------------------------------------------------------------------------------------------------
Water and Sewer - 2.9%
4,000,000 State of California, Department of Water Resources, Central 12/06 at 101 1/2 AAA 3,853,480
Valley Project, Water System Revenue Bonds, Series Q,
5.375%, 12/01/27
5,500,000 Orange County Water District (California), Series 1993A, 8/03 at 100 AA 5,102,240
Certificates of Participation, 5.000%, 8/15/18
- -----------------------------------------------------------------------------------------------------------------------------------
$ 314,825,000 Total Investments - (cost $294,604,718) - 98.8% 306,602,155
=============
Other Assets Less Liabilities - 1.2% 3,758,004
-------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $310,360,159
===================================================================================================================
* 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)
August 31, 1999
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Consumer Staples - 1.7%
$ 9,150,000 California Pollution Control Financing Authority, Sewage and 12/06 at 101 A+ $9,157,961
Solid Waste Disposal Facilities Revenue Bonds (Anheuser-Busch
Project), Series 1996, 5.750%, 12/01/30 (Alternative Minimum Tax)
- -----------------------------------------------------------------------------------------------------------------------------------
Education and Civic Organizations - 1.9%
5,000,000 California Educational Facilities Authority, Revenue Bonds 10/06 at 102 AAA 4,551,050
(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 5,502,000
Bonds (1989 Multiple Purpose Projects), Series C, 5.000%, 9/01/23
- -----------------------------------------------------------------------------------------------------------------------------------
Energy - 1.7%
9,500,000 California Pollution Control Financing Authority, Exempt 12/06 at 102 AA 9,127,505
Facilities Revenue Bonds, Series 1996 (Mobil Oil Corporation
Project), 5.500%, 12/01/29 (Alternative Minimum Tax)
- -----------------------------------------------------------------------------------------------------------------------------------
Health Care - 6.6%
3,000,000 California Health Facilities Financing Authority, Insured Health 7/04 at 102 AAA 2,642,670
Facility Refunding Revenue Bonds (Catholic Healthcare West),
1994 Series A, 4.750%, 7/01/19
7,485,000 California Health Facilities Financing Authority, Kaiser Permanente 3/01 at 102 A 7,802,813
Refunding Revenue Bonds, 1991 Series A, 6.500%, 3/01/11
1,775,000 California Statewide Communities Development Authority, 7/03 at 102 AA 1,701,018
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 6,676,670
(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 Bonds 12/03 at 102 AAA 9,059,776
(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 6,027,120
(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+ 1,028,570
Dameron Hospital Association, 1997 Series A, 5.450%, 12/01/10
- -----------------------------------------------------------------------------------------------------------------------------------
Housing/Multifamily - 2.7%
3,455,000 California Housing Finance Agency, Housing Revenue Bonds 8/01 at 102 AAA 3,623,811
(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 8,899,425
Apartment Development Revenue Refunding Bonds (Irvine
Apartment Communities, L.P.), Series 1998A, 5.250%, 5/15/25
(Mandatory put 5/15/13)
2,000,000 City of Vista, California, Mobile Home Park Subordinate Revenue 3/09 at 102 N/R 1,893,920
Bonds (Vista Manor Mobile Home Park Project), Series 1999B,
5.750%, 3/15/29
- -----------------------------------------------------------------------------------------------------------------------------------
Housing/Single Family - 7.8%
5,660,000 California Housing Finance Agency, Single Family Mortgage Bonds, 5/05 at 102 Aaa 5,846,384
1995 Issue A-2, 6.350%, 8/01/15 (Alternative Minimum Tax)
California Housing Finance Agency, Single Family Mortgage Bonds,
1995 Issue B:
1,715,000 6.250%, 8/01/14 (Alternative Minimum Tax) 10/05 at 102 AAA 1,742,371
8,340,000 6.250%, 2/01/18 (Alternative Minimum Tax) 10/05 at 102 AAA 8,600,625
2,205,000 California Housing Finance Agency, Home Mortgage Revenue Bonds, 8/01 at 102 Aa2 2,286,761
1991 Series G, 7.050%, 8/01/27 (Alternative Minimum Tax)
2,360,000 California Housing Finance Agency, Home Mortgage Revenue Bonds, 2/00 at 102 Aa2 2,418,788
1989 Series F, 7.250%, 8/01/17
5,845,000 California Housing Finance Agency, Home Mortgage Revenue Bonds, 2/06 at 102 AAA 5,928,876
1995 Series M, 6.150%, 8/01/27 (Alternative Minimum Tax)
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Housing/Single Family (continued)
$ 5,730,000 California Housing Finance Agency, Home Mortgage Revenue Bonds, 8/06 at 102 Aa2 $5,903,161
1996 Series H, 6.250%, 8/01/27 (Alternative Minimum Tax)
1,835,000 California Rural Home Mortgage Finance Authority, Single No Opt. Call AAA 2,006,389
Family 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 3,945,885
Mortgage Subsidy Program, Single Family Mortgage Revenue
Bonds, Portfolio I, 6.250%, 4/01/29 (Alternative Minimum Tax)
2,490,000 Southern California Home Financing Authority, Single Family 10/01 at 102 AAA 2,573,564
Mortgage Revenue Bonds (GNMA and FNMA Mortgage-Backed
Securities), Program 1991 Issue B, 6.900%, 10/01/24
(Alternative Minimum Tax)
- -----------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/General - 6.2%
11,405,000 State of California, Various Purpose General Obligation Bonds, 9/99 at 101 AA- 11,499,776
6.400%, 2/01/20 (Alternative Minimum Tax)
8,665,000 State of California, Veterans General Obligation Bonds, Series BH, 12/03 at 102 AA- 8,403,750
5.600%, 12/01/32 (Alternative Minimum Tax)
1,250,000 State of California, Various Purpose General Obligation Bonds, 4/09 at 101 AA- 1,073,975
4.750%, 4/01/29
13,020,000 City of Los Angeles, California, Unified School District, General 7/08 at 101 AAA 11,926,060
Obligation Bonds, Election of 1997 Series B, 5.000%, 7/01/23
- -----------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited - 14.9%
10,000,000 Anaheim Public Financing Authority, Lease Revenue Bonds No Opt. Call AAA 1,579,000
(Anaheim Public Improvements Project), Subordinate 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- 10,444,358
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 2,352,308
1991 Tax Allocation Revenue Bonds, Series A (Redevelopment
Project AB), 6.750%, 8/01/22
5,000,000 State Public Works Board of California, Lease Revenue Refunding 9/08 at 101 AAA 4,608,400
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- 6,080,940
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 11/03 at 102 AAA 4,577,100
Tax Allocation Refunding Revenue Bonds, 5.000%, 11/01/23
3,510,000 Long Beach Bond Finance Authority, Lease Revenue and 10/07 at 102 AAA 3,192,766
Refunding Bonds (Civic Center Project), 1997 Series A,
5.000%, 10/01/27
19,500,000 Los Angeles County Metropolitan Transportation Authority 7/08 at 101 AAA 17,861,610
(California), Proposition C Sales Tax Revenue Refunding Bonds,
Second Senior Bonds, Series 1998-A, 5.000%, 7/01/23
3,605,000 Oakland State Building Authority, Lease Revenue Bonds 4/08 at 101 AAA 3,308,128
(Elihu M. Harris State Office Building), 1998 Series A,
5.000%, 4/01/23
1,390,000 City of Palm Springs Financing Authority, Revenue (Tax Allocation) 8/01 at 102 A- 1,451,160
Bonds, 1991 Series B (Agency Loans), 6.800%, 8/01/11
2,185,000 Pleasanton Joint Powers Financing Authority, Reassessment Revenue 9/03 at 102 Baa1 2,272,029
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 2,665,872
1991 Revenue Bonds, Series A (Multiple Project Loans),
8.000%, 2/01/18
5,235,000 City and County of San Francisco Redevelopment Financing 8/03 at 103 A 4,834,889
Authority, 1993 Series C, Tax Allocation Revenue Bonds
(San Francisco Redevelopment Projects), 5.125%, 8/01/18
10,000,000 Redevelopment Agency of the City of San Jose (California), 8/08 at 102 A 9,229,300
Merged Area Redevelopment Project, Tax Allocation Bonds,
Series 1998, 5.250%, 8/01/29
5,000,000 City of West Hollywood (Los Angeles County, California), 2/08 at 102 AAA 4,554,700
1998 Refunding Certificates of Participation, City of West
Hollywood Public Facilities Corporation, 5.000%, 2/01/25
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Transportation - 3.9%
$ 5,000,000 Alameda Corridor Transportation Authority (California), Tax-Exempt 10/09 at 101 AAA $4,522,150
Senior Lien Revenue Bonds, Series 1999A, 5.000%, 10/01/29
3,275,000 California Statewide Communities Development Authority, Special 10/07 at 102 Baa3 3,045,816
Facilities Lease Revenue Bonds, 1997 Series A,
5.700%, 10/01/33 (Alternative Minimum Tax)
2,000,000 California Statewide Communities Development Authority, 10/07 at 102 Baa3 1,837,500
Special Facilities Lease Revenue Bonds, 1997 Series A
(United Air Lines, Inc.- San Francisco International Airport Projects),
5.625%, 10/01/34 (Alternative Minimum Tax)
7,500,000 Harbor Department of the City of Los Angeles, Revenue Bonds, 8/06 at 101 AAA 7,766,850
Issue of 1996, 6.200%, 8/01/25 (Alternative Minimum Tax)
3,450,000 Airport Commission of the City and County of San Francisco, 5/04 at 102 AAA 3,657,449
California, San Francisco International Airport, Second Series
Revenue Bonds, Issue 5, 6.500%, 5/01/24 (Alternative Minimum Tax)
- -----------------------------------------------------------------------------------------------------------------------------------
U.S. Guaranteed - 36.6%
5,120,000 ABAG Finance Authority for Nonprofit Corporations, 11/03 at 102 AAA 5,199,616
Certificates 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 5,658,015
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*** 10,773,420
Revenue Bonds (Pomona Valley Hospital Medical Center),
1989 Series A, 7.000%, 1/01/18 (Pre-refunded to 1/01/00)
5,000,000 California Health Facilities Financing Authority, Insured 8/01 at 102 N/R*** 5,289,900
Health Facility Revenue Bonds (The H.E.L.P. Group), 1991 Series A,
7.000%, 8/01/21 (Pre-refunded to 8/01/01)
3,000,000 California Pollution Control Financing Authority, Solid Waste 7/02 at 102 Aaa 3,251,550
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 AA-*** 2,018,138
5.750%, 3/01/23 (Pre-refunded to 3/01/04)
3,310,000 State Public Works Board of California, Lease Revenue Bonds 9/01 at 102 Aaa 3,582,314
(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 California, Lease Revenue Bonds 9/01 at 100 A+*** 10,886,955
(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 California, Lease Revenue Bonds 9/05 at 100 A+*** 5,419,250
(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)
3,000,000 California Statewide Communities Development Authority, Series A, 4/03 at 102 N/R*** 3,228,960
Certificates of Participation, Pacific Homes, 6.000%, 4/01/17
(Pre-refunded to 4/01/03)
2,110,000 County of Contra Costa, California, 1989 Home Mortgage Revenue No Opt. Call AAA 2,493,999
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 12/01 at 102 AAA 7,496,790
Costa Counties, California), Water System Subordinated Revenue
Bonds, Series 1991, 6.375%, 6/01/12 (Pre-refunded to 12/01/01)
City of Inglewood, California, Certificates of Participation
(1991 Civic Center Improvement Project):
5,515,000 7.000%, 8/01/11 (Pre-refunded to 8/01/01) 8/01 at 102 BBB-*** 5,917,760
5,000,000 7.000%, 8/01/19 (Pre-refunded to 8/01/01) 8/01 at 102 BBB-*** 5,365,150
3,000,000 6.500%, 8/01/21 (Pre-refunded to 8/01/01) 8/01 at 102 BBB-*** 3,191,670
2,750,000 The City of Los Angeles, Insured Certificates of Participation, 6/01 at 102 N/R*** 2,943,793
Ararat Home of Los Angeles, 7.250%, 6/01/21
(Pre-refunded to 6/01/01)
10,000,000 Los Angeles County Public Works Finance Authority, Revenue Bonds, 10/04 at 102 AA*** 10,941,600
Series 1994A (Los Angeles County Regional Park and Open Space
District), 6.000%, 10/01/15 (Pre-refunded to 10/01/04)
7,500,000 Los Angeles County Metropolitan Transportation Authority 7/01 at 102 Aaa 8,032,875
(California), 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 6,750,424
1990 Series A, 7.000%, 12/01/17 (Pre-refunded to 12/01/00)
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
U.S. Guaranteed (continued)
$ 1,705,000 City of Palm Springs Financing Authority, Tax Allocation Bonds, 8/05 at 100 N/R*** $1,916,522
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*** 3,974,429
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 20,480,290
6.800%, 11/01/20 (Pre-refunded to 11/01/01)
3,920,000 City of San Diego, California, Certificates of Participation 7/01 at 100 Aa*** 4,126,858
(Balboa 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 7/04 at 102 AAA 5,493,350
Revenue 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*** 4,246,760
(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-*** 7,336,656
3,000,000 6.750%, 10/01/21 (Pre-refunded to 10/01/01) 10/01 at 102 A-*** 3,221,910
6,925,000 Santa Monica Community College District, Refunding Certificates 6/01 at 102 A*** 7,425,885
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 7,130,890
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 10,800,300
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 AAA 3,623,532
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 3,241,920
Redevelopment Project No. 1, 1991 Tax Allocation Bonds,
Series A (Orange County, California), 7.300%, 8/01/21
(Pre-refunded to 8/01/01)
1,465,000 Yosemite Community College District, Certificates of Participation, 7/01 at 102 N/R*** 1,561,690
7.750%, 7/01/11 (Pre-refunded to 7/01/01)
- -----------------------------------------------------------------------------------------------------------------------------------
Utilities - 7.9%
10,350,000 California Pollution Control Financing Authority, Pollution Control No Opt. Call AA- 11,678,112
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 10,250,520
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 3,680,110
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 6,737,100
California, Electric Plant Revenue Bonds, Issue of 1991,
7.100%, 1/15/31
10,500,000 Southern California Public Power Authority, Transmission Project 7/03 at 100 AAA 9,661,260
Revenue Bonds, 1993 Subordinate Refunding Series (Southern
Transmission Project), 5.000%, 7/01/22
<PAGE>
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Water and Sewer - 7.1%
$ 7,500,000 Eastern Municipal Water District (California), Water and Sewer 7/08 at 101 AAA $6,914,325
Revenue Refunding Certificates of Participation, Series 1998A,
5.000%, 7/01/21
14,800,000 The City of Los Angeles, California, Wastewater System Revenue 6/08 at 101 AAA 13,409,984
Bonds, Series 1998-A, 5.000%, 6/01/28
10,135,000 The Metropolitan Water District of Southern California, Water No Opt. Call AA 12,483,682
Revenue Bonds, Issue of 1992, 8.000%, 7/01/08
5,000,000 Public Facilities Financing Authority of the City of San Diego 5/09 at 101 AAA 4,524,300
(California), Sewer Revenue Bonds, Series 1999B, 5.000%, 5/15/29
- -----------------------------------------------------------------------------------------------------------------------------------
$ 524,025,000 Total Investments - (cost $504,631,566) - 99.0% 524,055,563
=============
Other Assets Less Liabilities - 1.0% 5,288,872
-------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $529,344,435
===================================================================================================================
* Optional Call Provisions (not covered by the report of
independent auditors): Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings (not covered by the report of independent
auditors): Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. government or U.S. government agency
securities which ensures the timely payment of
principal and interest. Securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
Portfolio of Investments
Nuveen California Quality Income Municipal Fund, Inc. (NUC)
August 31, 1999
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Education and Civic Organizations - 1.4%
$ 2,000,000 California Educational Facilities Authority, Revenue Bonds 10/06 at 102 AAA $2,054,100
(University 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 4,021,440
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, Auxiliary 4/06 at 101 AAA 1,025,880
Organization Revenue Certificates of Participation (The University
Corporation-California State University, Northridge), Series 1996,
6.000%, 4/01/26
- -----------------------------------------------------------------------------------------------------------------------------------
Health Care - 5.4%
4,000,000 California Health Facilities Financing Authority, Insured Health 5/03 at 102 N/R 4,079,320
Facility Revenue Refunding Bonds, (Valley Memorial Hospital),
Series 1993A, 6.000%, 5/01/17
1,250,000 California Statewide Communities Development Authority, No Opt. Call A2 1,363,825
Hospital Revenue Certificates of Participation (Cedars-Sinai
Medical Center), Series 1992, 6.500%, 8/01/12
14,000,000 California Statewide Communities Development Authority, 8/02 at 102 A2 14,984,760
Hospital Revenue Certificates of Participation (Cedars-Sinai
Medical Center), 6.500%, 8/01/15
3,110,000 City of Loma Linda, California, Hospital Revenue Bonds 12/03 at 102 N/R 3,136,559
(Loma Linda University Medical Center Project), Series 1993-A,
6.500%, 12/01/18
2,465,000 City of Sacramento, Insured Health Facility Revenue Bonds 7/07 at 102 AA- 2,288,506
(CARES), 1998 Series A, 5.300%, 1/01/24
1,795,000 City of Torrance (California), Hospital Revenue Bonds 7/02 at 102 A 1,955,042
(Little Company of Mary Hospital Project), Series 1992,
6.875%, 7/01/15
- -----------------------------------------------------------------------------------------------------------------------------------
Housing/Multifamily - 5.1%
5,250,000 California Housing Finance Agency, Multi-Unit Rental Housing 8/02 at 102 Aa3 5,554,658
Revenue Bonds II, 1992 Series B, 6.700%, 8/01/15
California Statewide Communities Development Authority,
Apartment Development Revenue Refunding Bonds (Irvine Apartment
Communities, L.P.), Series 1998A:
1,000,000 5.100%, 5/15/25 (Mandatory put 5/15/10) 7/08 at 101 BBB 960,040
2,500,000 5.050%, 5/15/25 (Alternative Minimum Tax) (Mandatory put 5/15/08) No Opt. Call BBB 2,417,750
3,040,000 County of Riverside (California), Mobile Home Park Revenue Bonds 3/09 at 102 N/R 2,880,826
(Bravo Mobile Home Park Project), Series 1999B, 5.900%, 3/20/29
3,900,000 City of Stanton, Multifamily Housing Revenue Bonds (Continental 8/07 at 102 AAA 4,033,068
Gardens Apartments), Series 1997, 5.625%, 8/01/29
(Alternative Minimum Tax) (Mandatory put 8/01/09)
8,000,000 City of Vista, Multifamily Housing Revenue Refunding Bonds 4/02 at 102 AAA 8,367,040
(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 1,053,490
1,030,000 7.000%, 11/01/14 5/02 at 103 Aa2 1,092,346
- -----------------------------------------------------------------------------------------------------------------------------------
Housing/Single Family - 1.9%
1,335,000 California Housing Finance Agency, Home Mortgage Revenue 8/01 at 102 Aa2 1,384,502
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 Aa2 2,917,615
Bonds, 1995 Series B, 7.125%, 2/01/26 (Alternative Minimum Tax)
2,690,000 County of Riverside, California, Single Family Mortgage Revenue 11/99 at 102 AAA 2,680,773
Bonds (GNMA Mortgage-Backed Securities Program), Issue B
of 1989, 7.600%, 11/01/19 (Alternative Minimum Tax)
1,155,000 Southern California Home Financing Authority, Single Family 3/01 at 102 AAA 1,197,851
Mortgage 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>
Housing/Single Family (continued)
$ 1,330,000 Southern California Home Financing Authority, Single Family 3/02 at 102 AAA $1,371,469
Mortgage Revenue Bonds (GNMA and FNMA Mortgage-Backed
Securities Program), 1992 Issue A, 6.750%, 9/01/22
(Alternative Minimum Tax)
- -----------------------------------------------------------------------------------------------------------------------------------
Long-Term Care - 0.5%
2,465,000 California Health Facilities Financing Authority, Insured Health Facility 8/08 at 100 AA- 2,348,011
Revenue Bonds (Casa de las Campanas), 1998 Series A,
5.250%, 8/01/17
- -----------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/General - 7.6%
State of California, Various Purpose General Obligation Bonds:
10,000,000 6.400%, 9/01/07 No Opt. Call AA- 11,150,300
2,500,000 7.000%, 2/01/09 No Opt. Call AA- 2,897,225
11,000,000 4.750%, 4/01/29 4/09 at 101 AA- 9,450,980
14,000,000 State of California, General Obligation Bonds, 4.750%, 2/01/29 2/09 at 101 AAA 12,068,280
4,000,000 State of California, Veterans General Obligation Bonds, Series BN 12/03 at 101 AA- 3,910,960
(Non-AMT), 5.450%, 12/01/28
- -----------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited - 20.0%
4,825,000 Certificates of Participation (1991 Financing Project), County 9/06 at 102 AAA 4,971,921
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+ 2,275,108
(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 946,630
2,765,000 5.700%, 8/01/28 8/08 at 102 N/R 2,622,602
2,100,000 Cudahy Redevelopment Agency, Cudahy Redevelopment Project, 9/03 at 102 BBB 2,212,539
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 4,325,600
Refunding Revenue Bonds, 4.600%, 11/01/20
3,000,000 Fontana Public Financing Authority (San Bernardino County, 9/00 at 102 BBB 3,107,700
California), 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 9/01 at 102 A- 1,895,636
Santa Clara, 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 12/00 at 102 A1 2,881,606
(1992 Street Improvement Project), 6.625%, 12/01/11
4,000,000 Inland Empire Solid Waste Financing Authority, Revenue Bonds, No Opt. Call AAA 4,311,440
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 3/08 at 102 N/R 2,241,051
Mobile Home Park Project), Series 1998A (California),
5.700%, 3/01/18
5,475,000 Community Facilities District No. 90-1 of the City of Lancaster, 9/07 at 102 AAA 5,156,738
1998 Special Tax Refunding Bonds, 4.900%, 9/01/15
21,060,000 Los Angeles County Metropolitan Transportation Authority 7/08 at 101 AAA 19,290,539
(California), Proposition C Sales Tax Revenue Refunding Bonds,
Second Senior Bonds, Series 1998-A, 5.000%, 7/01/23
2,500,000 Certificates of Participation (Western Nevada County Solid Waste 6/01 at 102 BB 2,588,625
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 2,588,587
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 19,201,806
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 9/03 at 102 BBB 3,432,198
Project Area, 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+ $3,255,600
2,250,000 6.000%, 2/15/08 No Opt. Call AA+ 2,444,738
2,000,000 County of Orange, California, 1996 Recovery Certificates of 7/06 at 102 AAA 2,052,860
Participation, Series A, 6.000%, 7/01/26
5,000,000 City of San Diego, California, Convention Center Expansion 10/08 at 101 AAA 4,317,850
Financing Authority, Lease Revenue Bonds, Series 1998A,
4.750%, 4/01/28
4,000,000 Redevelopment Agency of the City of San Jose (California) 8/08 at 102 A 3,691,720
Merged Area Redevelopment Project, Tax Allocation Bonds,
Series 1998, 5.250%, 8/01/29
3,000,000 City of Santa Barbara, California, Certificates of Participation 10/02 at 102 A 3,167,430
(Harbor Refunding Project), 6.750%, 10/01/27
- -----------------------------------------------------------------------------------------------------------------------------------
Transportation - 2.7%
2,750,000 California Statewide Communities Development Authority, Special 10/07 at 102 Baa3 2,526,563
Facilities Lease Revenue Bonds, 1997 Series A (United Air
Lines, Inc.- San Francisco International Airport Projects),
5.625%, 10/01/34 (Alternative Minimum Tax)
11,820,000 Airport Commission of the City and County of San Francisco, 5/09 at 101 AAA 10,525,119
California, San Francisco International Airport, Second Series
Revenue Bonds, Issue 23B Bonds, 5.000%, 5/01/30
(Alternative Minimum Tax)
5,000,000 San Joaquin Hills Transportation Corridor Agency, Toll Road No Opt. Call AAA 1,088,650
Refunding Revenue Bonds, Series 1997 A, 0.000%, 1/15/26
- -----------------------------------------------------------------------------------------------------------------------------------
U.S. Guaranteed - 44.7%
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 A2*** 8,553,659
10,000,000 6.000%, 6/01/22 (Pre-refunded to 6/01/02) 6/02 at 102 A2*** 10,682,400
3,000,000 California Educational Facilities Authority, Revenue Bonds 2/02 at 102 A1*** 3,205,680
(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*** 2,137,881
5,000,000 6.500%, 10/01/22 (Pre-refunded to 10/01/02) 10/02 at 102 A*** 5,439,900
7,430,000 California Educational Facilities Authority, Revenue Bonds 10/02 at 102 Aaa 8,071,358
(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 5/00 at 102 Aaa 3,843,355
Facility 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*** 3,392,539
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 6/01 at 102 N/R*** 6,386,400
Revenue 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 7/02 at 102 Aaa 8,670,800
Revenue 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 AA-*** 8,254,754
5.750%, 3/01/19 (Pre-refunded to 3/01/05)
2,000,000 State of California, Department of Water Resources, 6/02 at 101 1/2 Aaa 2,150,300
Central Valley 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 California, Lease Revenue 9/01 at 102 Aaa 2,135,940
Bonds (Department of Corrections), Series 1991A (State
Prisons-Imperial County), 6.500%, 9/01/11 (Pre-refunded to 9/01/01)
10,050,000 State Public Works Board of California, Lease Revenue 10/02 at 102 AAA 11,004,147
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)
<PAGE>
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
U.S. Guaranteed (continued)
State Public Works Board 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 $7,904,861
7,625,000 7.000%, 11/01/19 (Pre-refunded to 11/01/04) 11/04 at 102 Aaa 8,716,366
3,570,000 California Statewide Communities Development Authority No Opt. Call N/R*** 3,823,006
(Triad Healthcare), Revenue Refunding Bonds 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*** 2,190,300
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*** 3,159,420
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 Revenue No Opt. Call AAA 16,683,122
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+*** 11,042,800
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)
12,500,000 Foothill/Eastern Transportation Corridor Agency (California), 1/07 at 100 BBB-*** 13,582,000
Toll Road Revenue Bonds, Series 1995A, 6.000%, 1/01/34
(Pre-refunded to 1/01/07)
5,210,000 Fresno Unified School District, Fresno County, California, 5/00 at 102 A2*** 5,418,348
Certificates of Participation for Measure A Capital Projects,
Series of 1992B for Project Phase IX, 6.700%, 5/01/12
(Pre-refunded to 5/01/00)
8,000,000 Lancaster School District, Certificates of Participation 3/02 at 105 AAA 8,927,520
(1992 Refunding Project), 7.000%, 3/01/22 (Pre-refunded to 3/01/02)
5,435,000 Community Redevelopment Financing Authority of the City of 9/02 at 102 N/R*** 5,874,039
Los Angeles, California, Pooled Financing Bonds, Series A
(Bunker Hill, Los Angeles Harbor Industrial Center and
Monterey Hills Redevelopment Projects), Series A,
6.375%, 9/01/14 (Pre-refunded to 9/01/02)
4,500,000 City of Los Angeles, California, Wastewater System Revenue Bonds, 12/00 at 102 AAA 4,750,920
Series 1991-D, 6.700%, 12/01/21 (Pre-refunded to 12/01/00)
2,000,000 Redevelopment Agency of the City of Moorpark, Moorpark 10/03 at 102 N/R*** 2,173,220
Redevelopment Project, 1993 Tax Allocation Bonds,
6.125%, 10/01/18 (Pre-refunded to 10/01/03)
10,000,000 County of Orange, California, Certificates of Participation 8/01 at 102 AAA 10,696,600
(Civic 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 16,304,252
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 5/01 at 102 AA-*** 8,763,004
Certificates of Participation, Series 1991A, 6.300%, 5/01/05
(Pre-refunded to 5/01/01)
2,575,000 City of Santa Maria, Revenue Certificates of Participation 9/02 at 102 N/R*** 2,815,376
(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 3/02 at 102 N/R*** 4,613,427
Revenue 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 12/01 at 102 AA-*** 3,261,132
Bonds, 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 9/02 at 102 AAA 6,791,377
Bonds (Multiple Purpose Projects), Series A, 6.875%, 9/01/16
(Pre-refunded to 9/01/02)
- -----------------------------------------------------------------------------------------------------------------------------------
Utilities - 5.4%
10,000,000 California Pollution Control Financing Authority, Pollution 12/01 at 102 Aa3 10,622,300
Control Revenue Bonds (Southern California Edison Company),
1991 Series, 6.900%, 12/01/17 (Alternative Minimum Tax)
5,000,000 California Pollution Control Financing Authority, Pollution Control 6/02 at 102 AA- 5,347,900
Revenue 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 9/99 at 100 AAA 5,678,766
(1993 Refunding of 1986 and 1987 Projects), 6.800%, 3/01/07
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Utilities (continued)
$ 5,500,000 Southern California Public Power Authority, Multiple Project Revenue No Opt. Call A $6,232,820
Bonds, 1989 Series, 6.750%, 7/01/11
- -----------------------------------------------------------------------------------------------------------------------------------
Water and Sewer - 3.9%
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 3,666,992
8,400,000 4.500%, 5/15/30 5/03 at 102 AAA 6,919,583
2,000,000 The Metropolitan Water District of Southern California, 7/06 at 100 AAA 1,760,820
Water Revenue Refunding Bonds, 1996 Series B, 4.750%, 7/01/21
1,000,000 City of Norco Refunding Certificates of Participation, Series 1998 10/08 at 102 AAA 926,080
(Sewer System and Water System Improvement Project),
5.125%, 10/01/28
5,000,000 Public Facilities Financing Authority of the City of San Diego 5/09 at 101 AAA 4,524,300
(California), Sewer Revenue Bonds, Series 1999B, 5.000%, 5/15/29
2,000,000 City of Santa Barbara, California, Certificates of Participation 4/02 at 102 AAA 2,122,300
(1992 Water System Improvement Project and Refunding),
6.700%, 4/01/27
- -----------------------------------------------------------------------------------------------------------------------------------
$ 491,495,000 Total Investments - (cost $479,948,697) - 98.6% 508,989,536
=============
Other Assets Less Liabilities - 1.4% 7,072,188
-------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $516,061,724
===================================================================================================================
* Optional Call Provisions (not covered by the report of
independent auditors): Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings (not covered by the report of independent
auditors): Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. government or U.S. government agency
securities which ensures the timely payment of
principal and interest. Securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
Portfolio of Investments
Nuveen California Dividend Advantage Municipal Fund (NAC)
August 31, 1999
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Education and Civic Organizations - 0.6%
$ 3,000,000 California Infrastructure and Economic Development Bank, Revenue 12/09 at 101 A $2,947,200
Bonds, Series 1999 (The American Center for Wine, Food and the
Arts Project), 5.800%, 12/01/29
- -----------------------------------------------------------------------------------------------------------------------------------
Health Care - 7.1%
8,400,000 California Health Facilities Financing Authority, Kaiser Permanente, 10/10 at 100 A 8,140,188
Revenue Bonds, Series 1998B, 5.250%, 10/01/14
(Optional put 10/01/08)
18,755,000 California Health Facilities Financing Authority, Revenue Bonds 11/08 at 101 AAA 16,982,465
(USCF - Stanford Health Care), 1998 Series A, 5.000%, 11/15/28
11,000,000 City of Duarte, California, Certificates of Participation, 4/09 at 101 BBB+ 9,451,200
City of Hope National Medical Center, Series 1999A, 5.250%, 4/01/31
- -----------------------------------------------------------------------------------------------------------------------------------
Housing/Multifamily - 11.5%
15,000,000 California Statewide Communities Development Authority, 7/08 at 101 BBB 14,453,100
Apartment Development Revenue Refunding Bonds (Irvine
Apartment Communities, L.P.), Series 1998A, 4.900%, 5/15/25
(Mandatory put 5/15/08)
7,700,000 California Statewide Communities Development Authority, 7/09 at 102 N/R 7,428,652
Multifamily Housing Revenue Bonds (Harbor City Lights Project),
Series 1999Y, 6.650%, 7/01/39 (Alternative Minimum Tax)
4,810,000 California Statewide Communities Development Authority, 7/09 at 102 N/R 4,642,660
Multifamily Housing Revenue Bonds (Cherry Tree Village
Apartments Project), Series 1999, 6.500%, 7/01/34
10,000,000 California Statewide Communities Development Authority, No Opt. Call BBB+ 9,895,800
Multifamily Housing Refunding Bonds (Archstone Pelican Point
Apartments), Issue 1999H Archstone Communities Trust,
5.300%, 6/01/29 (Mandatory put 6/01/08)
5,000,000 County of Contra Costa (California), Multifamily Housing 6/09 at 102 N/R 4,835,350
Revenue Bonds (Delta View Apartments), Series 1999C,
6.750%, 12/01/30 (Alternative Minimum Tax)
15,000,000 Housing Authority of the County of San Bernardino (California), No Opt. Call A3 14,761,800
Multifamily Housing Revenue Refunding Bonds (Equity
Residential/Redlands Lawn and Tennis Apartments), Issue 1999A,
5.200%, 6/15/29 (Mandatory put 6/15/09)
- -----------------------------------------------------------------------------------------------------------------------------------
Housing/Single Family - 3.6%
42,275,000 California Housing Finance Agency, Single Family Mortgage 2/09 at 31 1/8 AAA 7,238,748
Bonds II, 1999 Series D2, 0.000%, 2/01/29
(Alternative Minimum Tax)
11,500,000 California Housing Finance Agency, Home Mortgage Revenue 2/09 at 101 1/2 AAA 10,413,940
Bonds, 1998 Series E Remarketed, 5.250%, 2/01/33
(Alternative Minimum Tax)
- -----------------------------------------------------------------------------------------------------------------------------------
Long-Term Care - 1.6%
8,500,000 Riverside County (California), Public Financing Authority, 5/09 at 101 BBB- 7,867,175
Certificates of Participation, Air Force Village West, Inc,
5.800%, 5/15/29
- ------------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/General - 10.2%
State of California, Various Purpose General Obligation Bonds:
5,000,000 5.000%, 8/01/24 8/09 at 101 AAA 4,564,950
9,000,000 4.750%, 4/01/29 4/09 at 101 AA- 7,732,620
15,000,000 5.000%, 8/01/29 8/09 at 101 AAA 13,569,600
25,000,000 Los Angeles, California, Unified School District, General Obligation 7/09 at 101 AAA 23,719,500
Bonds, Election of 1997 Series C (1999), 5.250%, 7/01/24
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Tax Obligation/Limited - 26.0%
$ 8,665,000 Bonita Canyon Public Facilities Financing Authority (California), 9/99 at 103 N/R $7,745,470
Community Facilities District No. 98-1 Special Tax Bonds,
Series 1998, 5.375%, 9/01/28
13,290,000 Community Facilities District No. 1 (Mira Loma Area) of Jurupa 9/08 at 102 AAA 11,546,884
(California), Community Services District, 1998 Special Tax Bonds,
4.750%, 9/01/24 (Optional put 9/01/10)
5,500,000 County of Los Angeles, Certificates of Participation 9/08 at 101 AAA 4,818,330
(1998 Disney Parking Refunding Project), 4.750%, 3/01/23
33,000,000 Los Angeles County Metropolitan Transportation Authority 7/08 at 101 AAA 30,227,340
(California), Proposition C Sales Tax Revenue Refunding Bonds,
Second Senior Bonds, Series 1998-A, 5.000%, 7/01/23
6,880,000 Los Angeles County Metropolitan Transportation Authority 7/09 at 101 AAA 6,341,090
(California), Proposition A First Tier Senior Sales Tax Revenue
Bonds, Series 1999-C, 5.000%, 7/01/21
15,250,000 Los Angeles County Public Works Finance Authority, Revenue 10/07 at 101 AA 14,180,365
Bonds, Series 1997A (Los Angeles County Regional Park and
Open Space District), 5.000%, 10/01/19
14,160,000 Oakland State Building Authority, Lease Revenue Bonds 4/08 at 101 AAA 12,993,924
(Elihu M. Harris State Office Building), 1998 Series A,
5.000%, 4/01/23
15,030,000 Riverside County Public Financing Authority (California), No Opt. Call N/R 15,025,190
Reassessment Revenue Bonds, Rancho Village Project/AD No. 159,
1999 Series B (Junior Lien Bonds), 6.000%, 9/02/07
25,060,000 Redevelopment Agency of the City of San Jose (California), 8/08 at 102 A 23,128,626
Merged Area Redevelopment Project, Tax Allocation Bonds,
Series 1998, 5.250%, 8/01/29
- -----------------------------------------------------------------------------------------------------------------------------------
Transportation - 10.6%
15,000,000 Alameda Corridor Transportation Authority (California), 10/09 at 101 AAA 13,566,450
Tax-Exempt Senior Lien Revenue Bonds, Series 1999A,
5.000%, 10/01/29
28,150,000 Foothill/Eastern Transportation Corridor Agency (California), 1/10 at 101 BBB- 27,144,764
Toll Road Refunding Revenue Bonds, Series 1999, 5.750%, 1/15/40
11,995,000 Airport Commission City and County of San Francisco, California, 5/09 at 101 AAA 11,073,184
San Francisco International Airport, Second Series Revenue Bonds,
Issue 23B Bonds, 5.125%, 5/01/30
- -----------------------------------------------------------------------------------------------------------------------------------
Utilities - 13.9%
10,750,000 California Pollution Control Financing Authority, Pollution 9/09 at 100 AAA 10,524,573
Control Refunding Revenue Bonds (Southern California Edison
Company), 1999 Series C, 5.450%, 9/01/29 (WI)
Northern California Power Agency, Hydroelectric Project Number
One Revenue Bonds, 1998 Refunding Series A:
10,000,000 5.000%, 7/01/28 7/08 at 101 AAA 9,059,800
26,500,000 5.200%, 7/01/32 7/08 at 101 AAA 24,670,175
10,500,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/08 at 101 1/2 BBB+ 9,457,875
Series DD, 5.000%, 7/01/28
15,000,000 Sacramento Municipal Utility District (California), Electric 7/04 at 101 A 13,938,900
Revenue Refunding Bonds, 1999 Series M, 5.250%, 7/01/28
- -----------------------------------------------------------------------------------------------------------------------------------
Water and Sewer - 14.0%
12,000,000 Carmichael Water District (Sacramento County, California), 9/09 at 102 AAA 11,102,640
1999 Water Revenue Certificates of Participation,
5.125%, 9/01/29
7,200,000 Castaic Lake Water Agency, California (Water System Improvement 8/09 at 101 AAA 6,645,168
Project), Revenue Certificates of Participation, Series 1999A,
5.125%, 8/01/30
4,985,000 East Bay Municipal Utility District (Alameda and Contra 6/08 at 101 AAA 4,315,714
Costa Counties, California), Wastewater System Subordinated
Revenue Bonds, Series 1998, 4.750%, 6/01/28
5,000,000 East Bay Municipal Utility District (Alameda and Contra Costa 6/08 at 101 AAA 4,254,600
Counties, California), Water System Subordinated Revenue
Bonds, Series 1998, 4.750%, 6/01/34
7,000,000 The City of Los Angeles, California, Wastewater System 6/08 at 101 AAA 6,342,560
Revenue Bonds, Series 1998-A, 5.000%, 6/01/28
13,425,000 The Metropolitan Water District of Southern California, Water 1/08 at 101 AA 12,000,338
Revenue Bonds, 1997 Authorization, Series A, 5.000%, 7/01/37
<PAGE>
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Water and Sewer (continued)
$ 14,750,000 Orange County (California), Water District, Revenue Certificates of 8/09 at 101 AA $14,034,330
Participation, Series 1999A, 5.375%, 8/15/29
10,070,000 Public Facilities Financing Authority of the City of San Diego 5/09 at 101 AAA 9,111,940
(California), Sewer Revenue Bonds, Series 1999B, 5.000%, 5/15/29
- -----------------------------------------------------------------------------------------------------------------------------------
$ 554,100,000 Total Investments - (cost $502,042,865) - 99.1% 481,895,178
=============
Other Assets Less Liabilities - 0.9% 4,472,095
-------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $486,367,273
===================================================================================================================
* Optional Call Provisions (not covered by the report of
independent auditors): Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings (not covered by the report of independent
auditors): Using the higher of Standard & Poor's or
Moody's rating.
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>
Statement of Net Assets
August 31, 1999
<CAPTION>
California
California California California Investment
Value Performance Plus Opportunity Quality
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Assets
Investments in municipal securities, at market value (note 1) $241,688,690 $290,323,579 $184,355,843 $306,602,155
Cash 1,299,863 1,648,279 3,043,947 41,929
Receivables:
Interest 3,760,256 4,794,228 2,455,853 4,747,928
Investments sold 15,298 10,300 15,000 486,683
Other assets 23,322 37,701 25,942 31,435
- -----------------------------------------------------------------------------------------------------------------------------------
Total assets 246,787,429 296,814,087 189,896,585 311,910,130
- -----------------------------------------------------------------------------------------------------------------------------------
Liabilities
Payable for investments purchased -- -- -- --
Accrued expenses:
Management fees (note 6) 121,122 161,046 103,918 168,996
Other 163,701 220,907 225,347 301,471
Preferred share dividends payable N/A 45,972 33,247 15,979
Common share dividends payable 1,046,694 1,058,075 678,192 1,063,525
- -----------------------------------------------------------------------------------------------------------------------------------
Total liabilities 1,331,517 1,486,000 1,040,704 1,549,971
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets (note 7) $245,455,912 $295,328,087 $188,855,881 $310,360,159
===================================================================================================================================
Preferred shares, at liquidation value N/A $106,000,000 $ 68,000,000 $112,000,000
===================================================================================================================================
Preferred shares outstanding N/A 4,240 2,720 4,480
===================================================================================================================================
Common shares outstanding 25,222,660 12,748,544 8,026,604 13,378,331
===================================================================================================================================
Net asset value per Common share outstanding (net assets less
Preferred shares at liquidation value, divided by
Common shares outstanding) $ 9.73 $ 14.85 $ 15.06 $ 14.83
===================================================================================================================================
N/A - Fund is not authorized to issue Preferred Shares.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
Statement of Net Assets
August 31, 1999
<CAPTION>
California
California California Dividend
Select Quality Quality Income Advantage
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Assets
Investments in municipal securities, at market value (note 1) $524,055,563 $508,989,536 $481,895,178
Cash 3,638 49,586 179,840
Receivables:
Interest 7,693,219 9,030,668 6,271,899
Investments sold 65,300 335,000 11,363,180
Other assets 38,513 47,667 245,095
- -----------------------------------------------------------------------------------------------------------------------------------
Total assets 531,856,233 518,452,457 499,955,192
- -----------------------------------------------------------------------------------------------------------------------------------
Liabilities
Payable for investments purchased -- -- 11,005,000
Accrued expenses:
Management fees (note 6) 285,115 277,999 150,406
Other 323,495 289,162 696,847
Preferred share dividends payable 102,771 57,546 54,170
Common share dividends payable 1,800,417 1,766,026 1,681,496
- -----------------------------------------------------------------------------------------------------------------------------------
Total liabilities 2,511,798 2,390,733 13,587,919
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets (note 7) $529,344,435 $516,061,724 $486,367,273
===================================================================================================================================
Preferred shares, at liquidation value $192,000,000 $185,000,000 $175,000,000
===================================================================================================================================
Preferred shares outstanding 7,680 7,400 7,000
===================================================================================================================================
Common shares outstanding 22,790,692 21,669,642 23,354,116
===================================================================================================================================
Net asset value per Common share outstanding (net assets
less Preferred shares at liquidation
value, divided by Common shares outstanding) $ 14.80 $ 15.28 $ 13.33
===================================================================================================================================
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
Statement of Operations
Year Ended August 31, 1999
<CAPTION>
California
California California California Investment
Value Performance Plus Opportunity Quality
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Investment Income (note 1) $14,421,186 $17,665,723 $11,184,781 $17,813,296
- -----------------------------------------------------------------------------------------------------------------------------------
Expenses
Management fees (note 6) 1,500,644 1,878,547 1,203,393 1,956,246
Preferred shares - auction fees N/A 225,001 137,499 225,001
Preferred shares - dividend disbursing agent fees N/A 20,848 10,850 10,850
Shareholders' servicing agent fees and expenses 52,657 30,998 19,196 51,581
Custodian's fees and expenses 64,688 61,536 81,620 73,237
Directors'/Trustees' fees and expenses (note 6) 2,460 2,770 1,763 2,873
Professional fees 17,180 17,805 17,495 17,831
Shareholders' reports - printing and mailing expenses 87,256 66,520 45,457 110,683
Stock exchange listing fees 32,700 24,564 16,290 24,619
Investor relations expense 22,028 23,926 15,049 24,273
Other expenses 10,867 16,589 12,837 16,812
- -----------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and expense reimbursement 1,790,480 2,369,104 1,561,449 2,514,006
Custodian fee credit (note 1) (9,788) (4,749) (36,652) (16,348)
Expense reimbursement (note 6) -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------------------
Net expenses 1,780,692 2,364,355 1,524,797 2,497,658
- -----------------------------------------------------------------------------------------------------------------------------------
Net investment income 12,640,494 15,301,368 9,659,984 15,315,638
- -----------------------------------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss) from Investments
Net realized gain (loss) from investment transactions (notes 1 and 4) 36,793 (521,745) (199,360) (680,810)
Change in net unrealized appreciation or depreciation
of investments (15,346,519) (13,064,984) (9,867,255) (14,734,244)
- -----------------------------------------------------------------------------------------------------------------------------------
Net gain (loss) from investments (15,309,726) (13,586,729) (10,066,615) (15,415,054)
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from operations $(2,669,232) $ 1,714,639 $ (406,631) $ (99,416)
===================================================================================================================================
N/A - Fund is not authorized to issue Preferred Shares.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
Statement of Operations
Year Ended August 31, 1999
<CAPTION>
California
California California Dividend
Select Quality Quality Income Advantage*
<S> <C> <C> <C>
Investment Income (note 1) $30,256,464 $29,268,300 $ 5,017,175
- -----------------------------------------------------------------------------------------------------------------------------------
Expenses
Management fees (note 6) 3,283,092 3,218,204 666,149
Preferred shares - auction fees 383,919 375,001 37,157
Preferred shares - dividend disbursing agent fees 20,848 20,848 1,698
Shareholders' servicing agent fees and expenses 41,113 33,385 4,354
Custodian's fees and expenses 101,209 120,012 325,747
Directors'/Trustees' fees and expenses (note 6) 4,858 4,741 632
Professional fees 18,426 18,367 5,119
Shareholders' reports - printing and mailing expenses 113,450 105,099 16,840
Stock exchange listing fees 32,755 32,467 6,381
Investor relations expense 39,540 37,993 5,260
Other expenses 25,453 24,286 1,627
- -----------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and expense reimbursement 4,064,663 3,990,403 1,070,964
Custodian fee credit (note 1) (23,851) (43,435) (312,653)
Expense reimbursement (note 6) -- -- (301,935)
- -----------------------------------------------------------------------------------------------------------------------------------
Net expenses 4,040,812 3,946,968 456,376
- -----------------------------------------------------------------------------------------------------------------------------------
Net investment income 26,215,652 25,321,332 4,560,799
- -----------------------------------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss) from Investments
Net realized gain (loss) from investment transactions (notes 1 and 4) (522,458) (267,639) (1,105,626)
Change in net unrealized appreciation or depreciation of investments (24,242,895) (22,441,180) (20,147,687)
- -----------------------------------------------------------------------------------------------------------------------------------
Net gain (loss) from investments (24,765,353) (22,708,819) (21,253,313)
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from operations $ 1,450,299 $ 2,612,513 $(16,692,514)
===================================================================================================================================
*For the period May 26, 1999 (commencement of operations) through August 31,
1999.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
Statement of Changes in Net Assets
<CAPTION>
California Value California Performance Plus California Opportunity
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended
8/31/99 8/31/98 8/31/99 8/31/98 8/31/99 8/31/98
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Operations
Net investment income $ 12,640,494 $ 13,379,417 $ 15,301,368 $ 15,508,756 $ 9,659,984 $ 9,753,712
Net realized gain (loss)
from investment
transactions (notes 1 and 4) 36,793 1,609,036 (521,745) 753,844 (199,360) 1,168,298
Change in net unrealized
appreciation or
depreciation of investments (15,346,519) 7,275,057 (13,064,984) 3,671,035 (9,867,255) 2,432,009
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets
from operations (2,669,232) 22,263,510 1,714,639 19,933,635 (406,631) 13,354,019
- -----------------------------------------------------------------------------------------------------------------------------------
Distributions to Shareholders (note 1)
From undistributed net
investment income:
Common shareholders (12,560,888) (13,405,303) (12,733,040) (13,022,043) (8,115,487) (8,069,724)
Preferred shareholders N/A N/A (2,550,004) (2,861,139) (1,542,528) (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 (13,786,710) (14,749,671) (16,022,998) (16,136,766) (10,802,232) (9,907,133)
- -----------------------------------------------------------------------------------------------------------------------------------
Capital Share Transactions (note 2)
Common shares:
Net proceeds from sale of shares -- -- -- -- -- --
Net proceeds from shares
issued to shareholders due to
reinvestment of distributions -- 229,709 1,576,660 1,600,110 877,736 706,515
Preferred shares:
Net proceeds from sale of shares -- -- 15,726,552 -- 12,754,386 --
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from
capital share transactions -- 229,709 17,303,212 1,600,110 13,632,122 706,515
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets (16,455,942) 7,743,548 2,994,853 5,396,979 2,423,259 4,153,401
Net assets at the
beginning of year 261,911,854 254,168,306 292,333,234 286,936,255 186,432,622 182,279,221
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets at the end of year $245,455,912 $261,911,854 $295,328,087 $292,333,234 $188,855,881 $186,432,622
===================================================================================================================================
Balance of undistributed net
investment income at
the end of year $ 226,829 $ 147,223 $ 491,969 $ 473,645 $ 291,515 $ 289,546
===================================================================================================================================
N/A - Fund is not authorized to issue Preferred Shares.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
California Investment Quality California Select Quality
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended
8/31/99 8/31/98 8/31/99 8/31/98
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Operations
Net investment income $ 15,315,638 $ 15,657,549 $ 26,215,652 $ 26,310,925
Net realized gain (loss) from investment transactions
(notes 1 and 4) (680,810) 444,251 (522,458) 2,949,181
Change in net unrealized appreciation or
depreciation of investments (14,734,244) 4,240,471 (24,242,895) 6,035,385
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from operations (99,416) 20,342,271 1,450,299 35,295,491
- -----------------------------------------------------------------------------------------------------------------------------------
Distributions to Shareholders (note 1)
From undistributed net investment income:
Common shareholders (12,725,662) (13,080,251) (21,539,248) (22,044,563)
Preferred shareholders (2,570,101) (2,868,562) (4,190,468) (4,721,829)
From accumulated net realized gains from investment transactions:
Common shareholders (383,623) (62,200) (2,428,752) (322,695)
Preferred shareholders (83,412) (13,716) (521,736) (66,525)
- -----------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets from distributions to shareholders (15,762,798) (16,024,729) (28,680,204) (27,155,612)
- -----------------------------------------------------------------------------------------------------------------------------------
Capital Share Transactions (note 2)
Common shares:
Net proceeds from sale of shares -- -- -- --
Net proceeds from shares issued to shareholders due to
reinvestment of distributions 1,448,971 1,509,857 2,443,334 1,883,226
Preferred shares:
Net proceeds from sale of shares 21,665,884 -- 41,460,324 --
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from capital share transactions 23,114,855 1,509,857 43,903,658 1,883,226
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets 7,252,641 5,827,399 16,673,753 10,023,105
Net assets at the beginning of year 303,107,518 297,280,119 512,670,682 502,647,577
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets at the end of year $310,360,159 $303,107,518 $529,344,435 $512,670,682
===================================================================================================================================
Balance of undistributed net investment income at the end of year $ 347,123 $ 327,248 $ 811,678 $ 325,742
===================================================================================================================================
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
Statement of Changes in Net Assets (continued)
(Unaudited)
<CAPTION>
California Quality Income California Dividend Advantage
- -----------------------------------------------------------------------------------------------------------------------------------
For the Period 5/26/99
Year Ended Year Ended (commencement of operations)
8/31/99 8/31/98 through 8/31/99
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Operations
Net investment income $ 25,321,332 $ 25,437,033 $ 4,560,799
Net realized gain (loss) from investment
transactions (notes 1 and 4) (267,639) 585,068 (1,105,626)
Change in net unrealized appreciation or
depreciation of investments (22,441,180) 10,900,888 (20,147,687)
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from operations 2,612,513 36,922,989 (16,692,514)
- -----------------------------------------------------------------------------------------------------------------------------------
Distributions to Shareholders (note 1)
From undistributed net investment income:
Common shareholders (21,143,687) (21,032,274) (3,362,840)
Preferred shareholders (4,379,766) (4,840,296) (651,480)
From accumulated net realized gains from investment transactions:
Common shareholders (388,716) -- --
Preferred shareholders (90,180) -- --
- -----------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets from distributions to shareholders (26,002,349) (25,872,570) (4,014,320)
- -----------------------------------------------------------------------------------------------------------------------------------
Capital Share Transactions (note 2)
Common shares:
Net proceeds from sale of shares -- -- 333,950,247
Net proceeds from shares issued to shareholders due to
reinvestment of distributions 1,916,199 1,988,327 31,989
Preferred shares:
Net proceeds from sale of shares 34,535,270 -- 172,991,850
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from capital share transactions 36,451,469 1,988,327 506,974,086
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets 13,061,633 13,038,746 486,267,252
Net assets at the beginning of period 503,000,091 489,961,345 100,021
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets at the end of period $516,061,724 $503,000,091 $486,367,273
===================================================================================================================================
Balance of undistributed net investment income at the end of period $ 777,514 $ 979,635 $ 546,479
===================================================================================================================================
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), Nuveen California Quality Income
Municipal Fund, Inc. (NUC) and Nuveen California Dividend Advantage Municipal
Fund (NAC).
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/Trustees. When
price quotes are not readily available (which is usually the case for municipal
securities), the pricing service establishes fair market value based on yields
or prices of municipal bonds of comparable quality, type of issue, coupon,
maturity and rating, indications of value from securities dealers and general
market conditions. Temporary investments in securities that have variable rate
and demand features qualifying them as short-term securities are valued at
amortized cost, which approximates market value.
Securities Transactions
Securities transactions are recorded on a trade date basis. Realized gains and
losses from such transactions are determined on the specific identification
method. Securities purchased or sold on a when-issued or delayed delivery basis
may have extended settlement periods. The securities so purchased are subject to
market fluctuation during this period. The Funds have instructed the custodian
to segregate assets in a separate account with a current value at least equal to
the amount of the when-issued and delayed delivery purchase commitments. At
August 31, 1999, California Dividend Advantage had outstanding when-issued
purchase commitments of $11,005,000. 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. All monthly
tax-exempt income dividends paid during the fiscal year ended August 31, 1999,
have been designated Exempt Interest Dividends. Net realized capital gain and
market discount distributions are subject to federal taxation.
Dividends and Distributions to Shareholders
Tax-exempt net investment income is declared as a dividend monthly and payment
is made or reinvestment is credited to shareholder accounts on the first
business day after month end. Net realized capital gains and/or market discount
from investment transactions, if any, are distributed to shareholders not less
frequently than annually. Furthermore, capital gains are distributed only to the
extent they exceed available capital loss carryforwards.
<PAGE>
Distributions to shareholders of tax-exempt net investment income, net realized
capital gains and/or market discount are recorded on the ex-dividend date. The
amount and timing of distributions are determined in accordance with federal
income tax regulations, which may differ from generally accepted accounting
principles. Accordingly, temporary over-distributions as a result of these
differences may occur and will be classified as either distributions in excess
of net investment income, distributions in excess of net realized gains and/or
distributions in excess of net ordinary taxable income from investment
transactions, where applicable.
Preferred Shares
The Funds have issued and outstanding $25,000 stated value Preferred shares.
Each Fund's Preferred shares are issued in one or more Series. The dividend rate
on each series may change every seven days, as set by the auction agent. The
number of shares outstanding, by Series and in total, for each Fund is as
follows:
<TABLE>
<CAPTION>
California California California California California
Performance California Investment Select Quality Dividend
Plus Opportunity Quality Quality Income Advantage
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Number of shares:
Series M -- -- 3,600 -- 1,400 --
Series T 1,800 -- -- 2,400 -- --
Series W 640 2,200 880 1,680 3,000 --
Series Th -- -- -- 3,600 -- 3,500
Series F 1,800 520 -- -- 3,000 3,500
- ---------------------------------------------------------------------------------------------------------
Total 4,240 2,720 4,480 7,680 7,400 7,000
=========================================================================================================
</TABLE>
Effective June 11, 1999, California Performance Plus issued 640 Series W $25,000
stated value Preferred shares.
Effective June 18, 1999, California Opportunity issued 520 Series F $25,000
stated value Preferred shares.
Effective June 4, 1999, California Investment Quality issued 880 Series W
$25,000 stated value Preferred shares.
Effective May 21, 1999, California Select Quality issued 1,680 Series W $25,000
stated value Preferred shares.
Effective May 28, 1999, California Quality Income issued 1,400 Series M $25,000
stated value Preferred shares.
Effective July, 16 1999, California Dividend Advantage issued 3,500 Series Th
and 3,500 Series F $25,000 stated value Preferred shares.
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 fiscal year ended August 31, 1999.
Custodian Fee Credit
Each Fund has an arrangement with the custodian bank whereby the custodian fees
and expenses are reduced by credits earned on each Fund's cash on deposit with
the bank. Such deposit arrangements are an alternative to overnight investments.
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.
<PAGE>
2. Fund Shares
Transactions in Common and Preferred shares were as follows:
<TABLE>
<CAPTION>
California Value California Performance Plus California Opportunity
- ----------------------------------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended
8/31/99 8/31/98 8/31/99 8/31/98 8/31/99 8/31/98
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Common shares:
Shares sold -- -- -- -- -- --
Shares issued to shareholders
due to reinvestment
of distributions -- 22,464 89,260 91,264 49,992 40,765
- ----------------------------------------------------------------------------------------------------------
-- 22,464 89,260 91,264 49,992 40,765
- ----------------------------------------------------------------------------------------------------------
Preferred shares sold N/A N/A 640 -- 520 --
==========================================================================================================
<CAPTION>
California Investment
Quality California Select Quality
- ----------------------------------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended
8/31/99 8/31/98 8/31/99 8/31/98
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Common shares:
Shares sold -- -- -- --
Shares issued to shareholders
due to reinvestment of distributions 85,501 88,738 146,703 113,065
- ----------------------------------------------------------------------------------------------------------
85,501 88,738 146,703 113,065
- ----------------------------------------------------------------------------------------------------------
Preferred shares sold 880 -- 1,680 --
==========================================================================================================
<CAPTION>
California California
Quality Income Dividend Advantage
- ----------------------------------------------------------------------------------------------------------
Year Ended Year Ended For the Period 5/26/99
8/31/99 8/31/98 through 8/31/99
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Common shares:
Shares sold -- -- 23,345,000
Shares issued to shareholders
due to reinvestment of distributions 110,967 118,416 2,134
- ----------------------------------------------------------------------------------------------------------
110,967 118,416 23,347,134
- ----------------------------------------------------------------------------------------------------------
Preferred shares sold 1,400 -- 7,000
==========================================================================================================
</TABLE>
3. Distributions to Common Shareholders
The Funds declared Common share dividend distributions from their tax-exempt net
investment income which were paid October 1, 1999, to shareholders of record on
September 15, 1999, as follows:
<TABLE>
<CAPTION>
California California California California California
California Performance California Investment Select Quality Dividend
Value Plus Opportunity Quality Quality Income Advantage
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Dividend per share $.0415 $.0830 $.0845 $.0795 $.0790 $.0815 $.0720
=========================================================================================================
</TABLE>
4. Securities Transactions
Purchases and sales (including maturities) of investments in long-term municipal
securities and short-term municipal securities during the fiscal year ended
August 31, 1999, were as follows:
<TABLE>
<CAPTION>
California California
California Performance California Investment
Value Plus Opportunity Quality
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Purchases:
Long-term municipal securities $92,225,137 $91,668,567 $78,766,395 $76,488,679
Short-term municipal securities -- 16,005,000 14,808,000 12,000,000
Sales and maturities:
Long-term municipal securities 90,371,192 76,386,147 69,059,600 53,454,944
Short-term municipal securities 1,500,000 16,005,000 15,308,000 12,000,000
=========================================================================================================
<CAPTION>
California California California
Select Quality Dividend
Quality Income Advantage
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Purchases:
Long-term municipal securities $75,949,284 $89,008,122 $532,191,842
Short-term municipal securities 28,100,000 16,100,000 239,270,000
Sales and maturities:
Long-term municipal securities 34,135,855 54,173,104 29,099,761
Short-term municipal securities 28,100,000 16,100,000 239,270,000
=========================================================================================================
</TABLE>
<PAGE>
At August 31, 1999, the identified cost of investments owned for federal income
tax purposes were as follows:
<TABLE>
<CAPTION>
California California California California California
California Performance California Investment Select Quality Dividend
Value Plus Opportunity Quality Quality Income Advantage
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$234,127,711 $279,658,859 $175,584,851 $295,306,824 $505,144,584 $480,201,405 $502,048,535
=========================================================================================================
</TABLE>
At August 31, 1999, the following Funds had unused capital loss carryforwards
available for federal income tax purposes to be applied against future capital
gains, if any. If not applied, the carryforwards will expire as follows:
<TABLE>
<CAPTION>
California California California California
Performance Select Quality Dividend
Plus Quality Income Advantage
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Expiration year:
2007 $4,263 $9,440 $14,931 $5,670
==========================================================================================================
</TABLE>
5. Unrealized Appreciation (Depreciation)
Gross unrealized appreciation and gross unrealized depreciation of investments
for federal income tax purposes at August 31, 1999, were as follows:
<TABLE>
<CAPTION>
California California
California Performance California Investment
Value Plus Opportunity Quality
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Gross unrealized:
appreciation $11,010,565 $13,670,372 $10,129,076 $15,248,728
depreciation (3,449,586) (3,005,652) (1,358,084) (3,953,397)
- ---------------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) $ 7,560,979 $10,664,720 $ 8,770,992 $11,295,331
=========================================================================================================
<CAPTION>
California California California
Select Quality Dividend
Quality Income Advantage
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Gross unrealized:
appreciation $26,077,225 $34,398,592 $ --
depreciation (7,166,246) (5,610,461) (20,153,357)
- ---------------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) $18,910,979 $28,788,131 $(20,153,357)
=========================================================================================================
</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 assets of the Fund, as well as 4.125% of the gross interest income of
the Fund.
Under the Fund's (excluding California Value and California Dividend Advantage)
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 assets of each Fund as follows:
Average Daily Net Assets 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
================================================================================
<PAGE>
Under California Dividend Advantage's investment management agreement with the
Adviser, the Fund pays an annual management fee, payable monthly, at the rates
set forth below, which are based upon the average daily net assets of the Fund
as follows:
Average Daily Net Assets 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 .5750 of 1
================================================================================
The Adviser has agreed to waive part of its management fees or reimburse certain
expenses of California Dividend Advantage in an amount equal to .30% of the
average daily net assets for the period May 26, 1999 (commencement of
operations) through July 31, 2004, .25% of the daily net assets for the year
ended July 31, 2005, .20% of the daily net assets for the year ended July 31,
2006, .15% of the daily net assets for the year ended July 31, 2007, .10% of the
daily net assets for the year ended July 31, 2008, and .05% of the daily net
assets for the year ended July 31, 2009. The Adviser has not agreed to reimburse
California Dividend Advantage for any portion of its fees and expenses beyond
July 31, 2009.
The management 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/Trustees who are affiliated with
the Adviser or to their officers, all of whom receive remuneration for their
services to the Funds from the Adviser.
7. Composition of Net Assets
At August 31, 1999, net assets consisted of:
<TABLE>
<CAPTION>
California California
California Performance California Investment
Value Plus Opportunity Quality
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Preferred shares, $25,000 stated value per share,
at liquidation value $ N/A $106,000,000 $ 68,000,000 $112,000,000
Common shares, $.01 par value per share 252,227 127,485 80,266 133,783
Paid-in surplus 237,377,899 178,048,176 111,713,108 186,583,922
Balance of undistributed net investment income 226,829 491,969 291,515 347,123
Accumulated net realized gain (loss)
from investment transactions (70,247) (521,745) (200,090) (702,106)
Net unrealized appreciation (depreciation)
of investments 7,669,204 11,182,202 8,971,082 11,997,437
- -------------------------------------------------------------------------------------------------------------
Net assets $245,455,912 $295,328,087 $188,855,881 $310,360,159
=============================================================================================================
Authorized shares:
Common 250,000,000 200,000,000 200,000,000 200,000,000
Preferred N/A 1,000,000 1,000,000 1,000,000
=============================================================================================================
N/A - Fund is not authorized to issue Preferred Shares.
<CAPTION>
California California California
Select Quality Dividend
Quality Income Advantage
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Preferred shares, $25,000 stated value per share,
at liquidation value $192,000,000 $185,000,000 $175,000,000
Common shares, $.01 par value per share 227,907 216,696 233,541
Paid-in surplus 317,403,311 301,294,314 331,840,566
Balance of undistributed net investment income 811,678 777,514 546,479
Accumulated net realized gain (loss) from investment transactions (522,458) (267,639) (1,105,626)
Net unrealized appreciation (depreciation) of investments 19,423,997 29,040,839 (20,147,687)
- ---------------------------------------------------------------------------------------------------------
Net assets $529,344,435 $516,061,724 $486,367,273
=========================================================================================================
Authorized shares:
Common 200,000,000 200,000,000 Unlimited
Preferred 1,000,000 1,000,000 Unlimited
=========================================================================================================
</TABLE>
<PAGE>
<TABLE>
Financial Highlights
Selected data for a Common share outstanding throughout
each period:
<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 $10.38 $ .50 $ (.60) $ (.10)
1998 10.09 .53 .34 .87
1997 10.03 .59 .15 .74
1996 10.20 .61 (.10) .51
1995 10.20 .64 .04 .68
<CAPTION>
California Performance Plus
<S> <C> <C> <C> <C>
Year Ended 8/31:
1999 15.98 1.20 (1.07) .13
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
<CAPTION>
California Opportunity
<S> <C> <C> <C> <C>
Year Ended 8/31:
1999 16.48 1.21 (1.28) (.07)
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
<CAPTION>
California Investment Quality
<S> <C> <C> <C> <C>
Year Ended 8/31:
1999 16.03 1.15 (1.17) (.02)
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
<CAPTION>
California Select Quality
<S> <C> <C> <C> <C>
Year Ended 8/31:
1999 16.02 1.15 (1.11) .04
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
<CAPTION>
California Quality Income
<S> <C> <C> <C> <C>
Year Ended 8/31:
1999 16.37 1.17 (1.06) .11
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
<CAPTION>
California Dividend Advantage
<S> <C> <C> <C> <C>
Year Ended 8/31:
1999(a) 14.33 .20 (.92) (.72)
<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 $ (.50) $ N/A $ (.05) $ N/A $ (.55)
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)
<CAPTION>
California Performance Plus
<S> <C> <C> <C> <C> <C>
Year Ended 8/31:
1999 (1.00) (.20) (.05) (.01) (1.26)
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)
<CAPTION>
California Opportunity
<S> <C> <C> <C> <C> <C>
Year Ended 8/31:
1999 (1.01) (.19) (.12) (.03) (1.35)
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)
<CAPTION>
California Investment Quality
<S> <C> <C> <C> <C> <C>
Year Ended 8/31:
1999 (.95) (.19) (.03) (.01) (1.18)
1998 (.99) (.22) -- -- (1.21)
1997 (.99) (.22) -- -- (1.21)
1996 (1.02) (.22) -- -- (1.24)
1995 (1.04) (.26) -- -- (1.30)
<CAPTION>
California Select Quality
<S> <C> <C> <C> <C> <C>
Year Ended 8/31:
1999 (.95) (.18) (.11) (.02) (1.26)
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)
<CAPTION>
California Quality Income
<S> <C> <C> <C> <C> <C>
Year Ended 8/31:
1999 (.98) (.20) (.02) -- (1.20)
1998 (.98) (.23) -- -- (1.21)
1997 (.98) (.22) -- -- (1.20)
1996 (.96) (.23) (.02)+++ (.01)+++ (1.22)
1995 (.96) (.27) -- -- (1.23)
<CAPTION>
California Dividend Advantage
<S> <C> <C> <C> <C> <C>
Year Ended 8/31:
1999(a) (.14) (.03) -- -- (.17)
<PAGE>
<CAPTION>
Total Returns
-----------------------
Organization
and
Offering
Costs and Based
Preferred Ending Based on
Share Net Ending on Net
Underwriting Asset Market Market Asset
Discounts Value Value Value** Value**
<S> <C> <C> <C> <C> <C>
California Value
Year Ended 8/31:
1999 -- $ 9.73 $ 9.2500 (.43)% (1.13)%
1998 -- 10.38 9.8125 2.11 8.90
1997 -- 10.09 10.1875 7.59 7.55
1996 -- 10.03 10.1250 12.52 5.16
1995 -- 10.20 9.6250 (6.59) 6.92
<CAPTION>
California Performance Plus
<S> <C> <C> <C> <C> <C>
Year Ended 8/31:
1999 -- 14.85 16.9375 (.12) (.66)
1998 -- 15.98 18.0000 10.74 8.93
1997 -- 15.67 17.2500 16.71 8.77
1996 -- 15.41 15.7500 14.04 6.53
1995 -- 15.45 14.7500 5.75 8.75
<CAPTION>
California Opportunity
<S> <C> <C> <C> <C> <C>
Year Ended 8/31:
1999 -- 15.06 16.8750 2.10 (1.97)
1998 -- 16.48 17.6250 11.99 9.36
1997 -- 16.04 16.6875 11.83 9.79
1996 -- 15.57 15.8750 13.10 6.31
1995 -- 15.64 15.0000 4.72 9.43
<CAPTION>
California Investment Quality
<S> <C> <C> <C> <C> <C>
Year Ended 8/31:
1999 -- 14.83 16.1875 1.67 (1.54)
1998 -- 16.03 16.8750 8.39 8.66
1997 -- 15.70 16.5000 12.32 8.82
1996 -- 15.37 15.6250 11.08 6.72
1995 -- 15.37 15.0000 3.77 8.38
<CAPTION>
California Select Quality
<S> <C> <C> <C> <C> <C>
Year Ended 8/31:
1999 -- 14.80 16.0625 2.15 (1.20)
1998 -- 16.02 16.7500 8.11 8.93
1997 -- 15.65 16.4375 13.22 10.17
1996 -- 15.19 15.5000 15.73 6.95
1995 -- 15.23 14.3750 7.14 9.22
<CAPTION>
California Quality Income
<S> <C> <C> <C> <C> <C>
Year Ended 8/31:
1999 -- 15.28 16.6250 1.37 (.72)
1998 -- 16.37 17.3750 13.29 9.65
1997 -- 15.86 16.2500 15.19 10.74
1996 -- 15.24 15.0000 12.32 7.89
1995 -- 15.05 14.2500 9.24 9.57
<CAPTION>
California Dividend Advantage
<S> <C> <C> <C> <C> <C>
Year Ended 8/31:
1999(a) (.11) 13.33 15.0000 .96 (5.99)
<PAGE>
<CAPTION>
Ratios/Supplemental Data
-------------------------------------------------------------
Before Credit/Reimbursement
-------------------------------------------------
Ratio of Net Ratio of Net
Ratio of Investment Ratio of Investment
Expenses Income to Expenses Income to
to Average Average to Average Average
Ending Net Assets Net Assets Total Total
Net Applicable Applicable Net Assets Net Assets
Assets to Common to Common Including Including
(000) Shares++ Shares++ Preferred++ Preferred++
California Value
<S> <C> <C> <C> <C> <C>
Year Ended 8/31:
1999 $245,456 .69% 4.90% N/A% N/A%
1998 261,912 .71 5.19 N/A N/A
1997 254,168 .74 5.85 N/A N/A
1996 251,948 .77 6.00 N/A N/A
1995 193,426 .75 6.32 N/A N/A
<CAPTION>
California Performance Plus
<S> <C> <C> <C> <C> <C>
Year Ended 8/31:
1999 295,328 1.19 7.67 .81 5.22
1998 292,333 1.18 7.76 .81 5.35
1997 286,936 1.19 8.17 .81 5.59
1996 282,104 1.18 8.23 .80 5.62
1995 281,766 1.23 8.56 .83 5.77
<CAPTION>
California Opportunity
<S> <C> <C> <C> <C> <C>
Year Ended 8/31:
1999 188,856 1.21 7.48 .84 5.16
1998 186,433 1.17 7.52 .82 5.28
1997 182,279 1.19 7.85 .82 5.46
1996 177,862 1.19 7.88 .82 5.47
1995 178,072 1.21 8.38 .83 5.73
<CAPTION>
California Investment Quality
<S> <C> <C> <C> <C> <C>
Year Ended 8/31:
1999 310,360 1.20 7.28 .82 5.01
1998 303,108 1.15 7.45 .80 5.22
1997 297,280 1.16 7.82 .80 5.44
1996 291,423 1.16 7.95 .81 5.51
1995 290,426 1.18 8.36 .81 5.72
<CAPTION>
California Select Quality
<S> <C> <C> <C> <C> <C>
Year Ended 8/31:
1999 529,344 1.14 7.34 .78 5.06
1998 512,671 1.11 7.35 .78 5.18
1997 502,648 1.12 7.68 .78 5.36
1996 490,214 1.13 7.73 .79 5.38
1995 489,967 1.16 8.25 .80 5.66
<CAPTION>
California Quality Income
<S> <C> <C> <C> <C> <C>
Year Ended 8/31:
1999 516,062 1.14 7.25 .79 4.98
1998 503,000 1.12 7.34 .78 5.12
1997 489,961 1.14 7.69 .79 5.31
1996 475,498 1.15 7.83 .79 5.37
1995 471,064 1.19 8.36 .80 5.63
<CAPTION>
California Dividend Advantage
<S> <C> <C> <C> <C> <C>
Year Ended 8/31:
1999(a) 486,367 1.28* 4.72* 1.01* 3.71*
<PAGE>
<CAPTION>
Ratios/Supplemental Data
-------------------------------------------------------------
After Credit/Reimbursement***
--------------------------------------------------
Ratio of Net Ratio of Net
Ratio of Investment Ratio of Investment
Expenses Income to Expenses Income to
to Average Average to Average Average
Net Assets Net Assets Total Total
Applicable Applicable Net Assets Net Assets Portfolio
to Common to Common Including Including Turnover
Shares++ Shares++ Preferred++ Preferred++ Rate
<S> <C> <C> <C> <C> <C>
California Value
Year Ended 8/31:
1999 .69% 4.90% N/A% N/A% 35%
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
<CAPTION>
California Performance Plus
<S> <C> <C> <C> <C> <C>
Year Ended 8/31:
1999 1.19 7.67 .81 5.22 26
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
<CAPTION>
California Opportunity
<S> <C> <C> <C> <C> <C>
Year Ended 8/31:
1999 1.18 7.51 .82 5.18 37
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
<CAPTION>
California Investment Quality
<S> <C> <C> <C> <C> <C>
Year Ended 8/31:
1999 1.19 7.29 .82 5.01 18
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
<CAPTION>
California Select Quality
<S> <C> <C> <C> <C> <C>
Year Ended 8/31:
1999 1.13 7.35 .78 5.06 7
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
<CAPTION>
California Quality Income
<S> <C> <C> <C> <C> <C>
Year Ended 8/31:
1999 1.13 7.26 .78 4.99 11
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
<CAPTION>
California Dividend Advantage
<S> <C> <C> <C> <C> <C>
Year Ended 8/31:
1999(a) .55* 5.45* .43* 4.29* 8
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.
*** After custodian fee credit and expense reimbursement, where applicable
(notes 1 and 6).
+ 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 period May 26, 1999 (commencement of operations) through August 31,
1999.
</TABLE>
<PAGE>
Build Your Wealth Automatically
sidebar text: Nuveen offers a number of convenient ways to add to your portfolio
and earn the tax-free income you need to achieve your financial goals.
sidebar text: Nuveen makes reinvesting easy. A phone call is all it takes to set
up your reinvestment account.
Nuveen Exchange-Traded Funds Dividend Reinvestment Plan
Your Nuveen Exchange-Traded Fund allows you to conveniently reinvest dividends
and/or capital gains distributions in additional fund shares. If you do not
elect to reinvest distributions, all distributions are paid by check or can be
deposited directly into your bank or brokerage account.
By choosing to reinvest, you'll be able to invest money regularly and
automatically, and watch your investment grow through the power of tax-free
compounding. You'll also benefit from dollar-cost averaging, a technique of
investing at regular intervals, which allows you to build a high-quality,
tax-free portfolio conveniently and cost effectively over time.
Easy and convenient
To make recordkeeping easy and convenient, each month you'll receive a statement
showing your total dividends and distributions, the date of investment, the
shares acquired and the price per share, and the total number of shares you own.
Income or capital gains taxes may be payable on dividends or distributions that
are reinvested.
How shares are purchased
The shares you acquire by reinvesting will either be purchased on the open
market or newly issued by the Fund. If the shares are trading at or above net
asset value at the time of valuation, the Fund will issue new shares at the
then-current market price. If the shares are trading at less than net asset
value, shares for your account will be purchased on the open market. Dividends
and distributions received to purchase shares in the open market will normally
be invested shortly after the dividend payment date. No interest will be paid on
dividends and distributions awaiting reinvestment. Because the market price of
shares may increase before purchases are completed, the average purchase price
per share may exceed the market price at the time of valuation, resulting in the
acquisition of fewer shares than if the dividend or distribution had been paid
in shares issued by the fund. A pro rata portion of any applicable brokerage
commissions on open market purchases will be paid by Plan participants. These
commissions usually will be lower than those charged on individual transactions.
Flexibility
You may, of course, change your distribution option or withdraw from the Plan at
any time, should your needs or situation change. Should you withdraw, you can
receive a certificate for all whole shares credited to your reinvestment account
and cash payment for fractional shares, or cash payment for all reinvestment
account shares, less brokerage commissions and a $2.50 service fee.
You can also reinvest if your shares are registered in the name of a brokerage
firm, bank, or other nominee. Just ask your investment adviser if the firm will
participate on your behalf. If not, it's easy to have the shares registered in
your name and to apply for a reinvestment account directly. Participants whose
shares are registered in the name of one firm may not be able to transfer the
shares to another firm and continue to participate in the Plan.
The Fund reserves the right to amend or terminate the Plan at any time. Although
the Fund reserves the right to amend the Plan to include a service charge
payable by the participants, there is no direct service charge to participants
in the Plan at this time.
For more information on the Nuveen Automatic Reinvestment Plan or to enroll in
or withdraw from the Plan, speak with your financial adviser or call us at (800)
257-8787.
<PAGE>
Fund Information
Board of Directors/Trustees
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.
Our Year 2000 review, repair, and testing program has been substantially
completed. This program included industry-wide testing of critical systems and
receipt of satisfactory assurances from critical service providers, vendors, and
issuers regarding their Year 2000 readiness. We will continue more refined
testing of our systems and their relationships with other parties' systems and
will regularly discuss the results of this testing with those parties. 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 can never have complete assurance 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.
Fund Policies
The Board of Trustees of your Fund recently modified certain investment policies
of the Fund. The Fund was formerly not permitted to invest more than 5% of its
total assets in Municipal Leases that contain "non-appropriation" clauses. In
addition, your Fund was not permitted to invest more than 10% of its total
assets in Municipal Leases and securities that are unmarketable, illiquid or not
readily marketable. The Municipal Lease market has matured since the Fund's
inception, and non-appropriation leases have become more liquid and widely
accepted. The Nuveen Exchange-Traded Fund Board has eliminated the restrictions
noted above, replacing them with requirements that the Funds limit investments
in non-appropriation Municipal Leases to those that meet one or more of six
criteria that indicate that the issuer will be motivated to continue to
appropriate monies to make the payments under the Municipal Lease.
The Board also eliminated the Fund's policy not to invest more than 5% of its
total assets in unsecured obligations of issuers which, together with their
predecessors, have been in operation for less than three years.
Each fund intends to repurchase shares of its own common or preferred stock in
the future at such times and in such amounts as is deemed advisable. No shares
were repurchased during the 12-month period ended August 31, 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.
LOGO: NUVEEN
John Nuveen &Co. Incorporated
333 West Wacker Drive
Chicago, IL 60606-1286
www.nuveen.com
FAN-1-8-99
