Nuveen Exchange- Traded Funds
Providing tax-free income
to help you live your dreams
INSURED CALIFORNIA PREMIUM INCOME (NPC)
INSURED CALIFORNIA PREMIUM INCOME 2 (NCL)
CALIFORNIA PREMIUM INCOME (NCU)
SEMIANNUAL REPORT/FEBRUARY 28, 1997
Photographic image of couple walking on beach.
<PAGE>
CONTENTS
3 Dear shareholder
5 Answering your questions
9 Fund performance
11 Commonly used terms
13 Shareholder meeting report
15 Portfolio of investments
28 Statement of net assets
29 Statement of operations
30 Statement of changes in net assets
32 Notes to financial statements
42 Financial highlights
<PAGE>
"These funds continue to achieve their goal of delivering attractive tax-free
income."
Photographic image of headshot of Chairman and Chief Executive Officer
of Nuveen.
Dear
shareholder
I am pleased to have this opportunity to report to you on the performance of
your funds, which continue to achieve their goal of delivering attractive
tax-free income from portfolios of quality municipal bonds. Because the proceeds
from these bonds are used to maintain and improve California's infrastructure,
your investment has several advantages: As you support the publicly funded
projects that enhance the communities where you live, you benefit from the
credit strength of these communities, and also receive income that is exempt
from federal and state income taxes.
As of February 28, 1997, investors in the California funds in this report were
receiving annual tax-free yields on net asset value that ranged from 5.78% to
5.89%. To match these attractive yields, investors in the combined 42% federal
and California income tax bracket would have had to earn at least 9.96% on
taxable alternatives. These funds also generated solid total returns of between
3.39% to 5.85%, equivalent to taxable total returns of 7.28% to 10%. This level
of performance gains added significance when viewed in the context of the 1996
bond market, which underwent a mid-year decline followed by a post-election
rally to end the year slightly lower than where it began.
<PAGE>
Several aspects of our conservative approach to management help position the
California Premium Income funds to perform well in changing market environments.
First, we enhance income through the prudent use of leverage, issuing short-term
preferred shares to investors seeking short-term liquidity. Fund managers then
invest the proceeds to buy additional long-term bonds. Shareholders of common
stock earn extra income from the difference between the rates earned on the
fund's long-term bond portfolio and the normally lower short-term rates paid on
preferred shares. In addition, our conservative dividend policy promotes
stability by setting dividends at levels that are expected to remain consistent
for at least six months. In this way, Nuveen works to smooth out fluctuations in
short-term rates, enabling investors to depend on their tax-free income.
Nuveen also continues to help investors keep more of what they earn. In
November 1996, we launched the Nuveen Growth and Income Stock Fund, offering
prudent investors superior equity market performance with less risk than the
overall stock market. This March we introduced two new balanced mutual funds,
each designed to give investors the combination of performance potential and
income protection that comes from a carefully assembled balance of stocks and
bonds. Ask your financial adviser for more information about these equity-based
mutual funds, or call us at (800) 621-7227 for a prospectus. Please read it
carefully before you invest.
In an additional move to increase the range of investment solutions available
to our investors, Nuveen acquired Flagship Resources Inc., a highly regarded
fixed-income mutual fund specialist that shares our views on the importance of
research and emphasizes a conservative, value-oriented approach to portfolio
management. We recently completed the integration of our mutual fund activities,
which now enables us to offer the broadest selection of municipal bond funds
available in the U.S.
We at Nuveen thank you for your continued confidence in our family of
investments.
Sincerely,
/s/ Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
April 15, 1997
<PAGE>
Answering your
questions
Tom Spalding, head of Nuveen's portfolio management team, talks about the
municipal bond market and offers insights into factors that affected fund
performance over the past year
How would you summarize 1996's bond market?
In 1996, the bond market--despite some fluctuations--was relatively stable
compared with recent years. While 1994 represented the worst period in recent
bond market history and 1995 the best in a decade, last year's bond market
finished mostly unchanged. This was due to the late second-half rebound that
reclaimed much of the territory lost in a mid-year decline. Throughout 1996, the
municipal bond market continued to reward investors with solid returns,
dependable income, and opportunities to purchase bonds with strong credit
quality.
<PAGE>
What principal factors affected the bond market and Nuveen funds in 1996?
Following a strong start to 1996, a succession of mixed reports affecting
interest rate and inflation forecasts caused investors to view the markets
with alternating enthusiasm and uncertainty. In the third quarter of 1996,
evidence of an economic slowdown, the strong U.S. dollar, and lack of
inflationary pressures combined to allay investor fears, sparking a rally
in bonds that continued through the post-election period.
Throughout the year, euphoria in the equity market focused investors'
attention on stocks and brought record amounts of new money into equity-based
mutual funds, bypassing the bond market. Some investors, concerned about a
possible correction in the stock market, decided to take their profits, but
adopted a wait-and-see attitude about investing capital gains, electing to go
with short-term vehicles until a clearer picture of market trends emerged. These
events affected demand for bond issues of all types in 1996.
Even with relative stability in 1996, interest rates continued to play a role
in bond market performance. The Federal Reserve altered interest rates only once
in 1996, decreasing rates by 0.25% in January, but anticipation of further moves
kept the markets restless the remainder of the year. With one rate increase
already approved this year, the concern about potential changes in monetary
policy continues in 1997.
<PAGE>
1996 also saw a general narrowing of fund discounts, with many exchange-traded
funds experiencing a combination of rising share prices and lower net asset
values as interest rates moved slightly upward. We believe that the current
yields and prudent dividend policy offered by Nuveen funds present an attractive
investment opportunity for investors who are looking for income and want to
rebalance their portfolios following significant gains in the equity market.
What is the current economic outlook?
A look at the current environment shows continued economic growth characterized
by low unemployment, increased manufacturing and construction activity, and
lack of price pressure at the consumer and producer levels. Although inflation
remains at the same subdued levels it has exhibited over the past six years,
the strength of the current economic expansion encouraged the Federal Reserve
to make a preemptive strike against inflation's potential return. It raised
short-term interest rates by 0.25% at the end of March, the first increase
since February 1995. While the bond market had already anticipated and
discounted much of the impact of this tightening, the Federal Reserve's action
set off a decline in the equity market that--in combination with the attractive
yields currently available--increased interest in municipal bonds on the part
of investors looking to balance their investment portfolios.
<PAGE>
Can you briefly describe the current status of California's municipal market?
In 1996, California's economy grew at an accelerated rate that outpaced that
of the nation as a whole. This strength is reflected in the state's positive
revenue performance, primarily derived from income and sales taxes. Job growth
has been robust, and the real estate market--both commercial and
residential--appears to be recovering. For 1997-98, Governor Wilson has
proposed a balanced state budget that emphasizes corporate tax reduction,
educational funding, and welfare reform. Local governments, however, are still
assessing the impact on existing and future bond issues of Proposition 218
(the recently passed initiative that requires voter approval of local and
special taxes). If approved, additional new voter initiatives and referendums,
including a proposal to require voter approval for all types of debt issued by
all governmental units, could affect growth prospects. Overall, the outlook
for the state's economy is favorable. California's challenge over
the next decade will be to provide an environment that promotes business as well
as expansive long-term growth.
Photographic image of Tom Spalding, Portfolio Manager at Nuveen.
Tom Spalding, head of Nuveen's portfolio management team, answers investors'
questions on develop ments in the municipal market.
<PAGE>
NUVEEN INSURED CALIFORNIA PREMIUM INCOME MUNICIPAL FUND, INC.
NPC
The fund's monthly tax-free dividend was increased during the 12 months ended
February 28, 1997. Shareholders continue to benefit from the fund's leveraged
structure. In addition, the portfolio continues to have significant call
protection.
<TABLE>
<CAPTION>
12 MONTH DIVIDEND HISTORY
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
3/1/96 $0.0655
4/1/96 $0.0655
5/1/96 $0.0655
6/3/96 $0.0655
7/1/96 $0.0675
8/1/96 $0.0675
9/3/96 $0.0675
10/1/96 $0.0675
11/1/96 $0.0675
12/2/96 $0.0675
12/31/96 $0.0675
2/3/97 $0.0675
<CAPTION>
FUND HIGHLIGHTS 2/28/97
<S> <C>
Yield 5.89%
Taxable-equivalent yield 10.16%
Annual total return on NAV 3.39%
Taxable-equivalent total return 7.28%
Share price $13.75
NAV $15.02
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
</TABLE>
<PAGE>
<TABLE>
NUVEEN INSURED CALIFORNIA PREMIUM INCOME MUNICIPAL FUND 2, INC.
NCL
In keeping with the fund's goal of providing attractive, dependable tax-free
income, common shareholders enjoyed 12 months of steady dividends.
<CAPTION>
12 MONTH DIVIDEND HISTORY
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
3/1/96 $0.0620
4/1/96 $0.0620
5/1/96 $0.0620
6/3/96 $0.0620
7/1/96 $0.0620
8/1/96 $0.0620
9/3/96 $0.0620
10/1/96 $0.0620
11/1/96 $0.0620
12/2/96 $0.0620
12/31/96 $0.0620
2/3/97 $0.0620
<CAPTION>
FUND HIGHLIGHTS 2/28/97
<S> <C>
Yield 5.78%
Taxable-equivalent yield 9.97%
Annual total return on NAV 5.12%
Taxable-equivalent total return 9.12%
Share price $12.875
NAV $13.74
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
</TABLE>
<PAGE>
<TABLE>
NUVEEN CALIFORNIA PREMIUM INCOME MUNICIPAL FUND
NCU
In keeping with the fund's goal of providing attractive, dependable tax-free
income, common shareholders enjoyed 12 months of steady dividends.
<CAPTION>
12 MONTH DIVIDEND HISTORY
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
3/1/96 $0.0615
4/1/96 $0.0615
5/1/96 $0.0615
6/3/96 $0.0615
7/1/96 $0.0615
8/1/96 $0.0615
9/3/96 $0.0615
10/1/96 $0.0615
11/1/96 $0.0615
12/2/96 $0.0615
12/31/96 $0.0615
2/3/97 $0.0615
<CAPTION>
FUND HIGHLIGHTS 2/28/97
<S> <C>
Yield 5.85%
Taxable-equivalent yield 10.09%
Annual total return on NAV 5.85%
Taxable-equivalent total return 10.00%
Share price $12.625
NAV $13.23
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
</TABLE>
<PAGE>
Commonly used terms
Yield
An exchange-traded fund's annualized monthly dividend on a given date (in the
case of this report, February 28, 1997) divided by its closing price per share
on that date.
Taxable equivalent yield
The return an investor subject to a given federal and state income tax rate
would need to obtain from a fully taxable investment to equal the fund's stated
annual ized yield on share price. In this report, this combined tax rate is
assumed to be 42% for California shareholders, based on 1997 incomes of
$124,650-$271,050 for investors filing singly, $151,750-$271,050 for those
filing jointly.
Net Asset Value (NAV)
The market value of all securities and other assets held by an exchange-traded
fund, minus any liabilities. The NAV per share is the fund's net assets, less
the value of its preferred shares, divided by its total number of common
shares outstanding.
Total return on NAV
The percentage change in a fund's NAV per common share for a given period,
assuming reinvestment of all dividends and capital gains distributions, if any.
<PAGE>
Taxable equivalent total return
The total return an investor subject to a given income tax rate would need to
obtain from a fully taxable investment to equal the fund's stated total return
on NAV.
Leverage
A technique used to enhance the income produced for common shareholders by a
long-term municipal bond fund through the issuance of short-term preferred
shares. The proceeds from the sale of the preferred shares can be used to
purchase additional long-term bonds, thus increasing the portfolio's income
stream. Changes in net asset value per share, both up and down, are also
magnified by leverage.
Each Fund intends to repurchase shares of its own common or preferred stock in
the future at such times and in such amounts as are deemed advisable. No shares
were repurchased during the six-month period ended February 28, 1997. Any future
repur chases will be reported to shareholders in the next annual or semiannual
report.
<PAGE>
<TABLE>
<CAPTION>
SHAREHOLDER MEETING REPORT
On November 21, 1996, the following Nuveen Exchange-Traded Funds held an Annual
Meeting of Shareholders. At the meeting, shareholders voted to elect directors
of the Funds and to ratify selection of Ernst & Young L.L.P. as the auditors for
the Funds. The directors elected at the meeting include: Lawrence H. Brown,
Anthony T. Dean, Anne E. Impellizzeri, Peter R. Sawers, Margaret K. Rosenheim,
and Timothy R. Schwertfeger.
NPC
Preferred
Common Shares
Shares Series-T
- ----------------------------------------------------------------------------------
<S> <C> <C>
APPROVAL OF THE DIRECTORS
WAS REACHED AS FOLLOWS:
Lawrence H. Brown
For 5,653,182 1,775
Withhold 97,495 25
--------- ---------
Total 5,750,677 1,800
========= =========
Anthony T. Dean
For 5,653,182 1,775
Withhold 97,495 25
--------- ---------
Total 5,750,677 1,800
========= =========
Anne E. Impellizzeri
For 5,651,482 1,775
Withhold 99,195 25
--------- ---------
Total 5,750,677 1,800
========= =========
Peter R. Sawers
For 5,653,182 1,775
Withhold 97,495 25
--------- ---------
Total 5,750,677 1,800
========= =========
Margaret K. Rosenheim
For -- 1,775
Withhold -- 25
--------- ---------
Total -- 1,800
========= =========
Timothy R. Schwertfeger
For -- 1,775
Withhold -- 25
--------- ---------
Total -- 1,800
========= =========
RATIFICATION OF AUDITORS
WAS REACHED AS FOLLOWS:
For 5,623,415 1,752
Against 15,000 6
Abstain 112,262 42
--------- ---------
Total 5,750,677 1,800
========= =========
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
SHAREHOLDER MEETING REPORT
NCL NCU
Preferred Preferred Preferred
Common Share Shares Common Shares
Shares Series-T Series-Th Shares Series-M
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
APPROVAL OF THE DIRECTORS
WAS REACHED AS FOLLOWS:
Lawrence H. Brown
For 11,457,985 1,850 1,889 5,405,637 1,706
Withhold 213,959 4 2 69,965 --
---------- ---------- ---------- ---------- ----------
Total 11,671,944 1,854 1,891 5,475,602 1,706
========== ========== ========== ========== ==========
Anthony T. Dean
For 11,453,921 1,850 1,889 5,405,937 1,706
Withhold 218,023 4 2 69,665 --
---------- ---------- ---------- ---------- ----------
Total 11,671,944 1,854 1,891 5,475,602 1,706
========== ========== ========== ========== ==========
Anne E. Impellizzeri
For 11,453,921 1,850 1,889 5,406,037 1,706
Withhold 218,023 4 2 69,565 --
---------- ---------- ---------- ---------- ----------
Total 11,671,944 1,854 1,891 5,475,602 1,706
========== ========== ========== ========== ==========
Peter R. Sawers
For 11,453,921 1,850 1,889 5,406,037 1,706
Withhold 218,023 4 2 69,565 --
---------- ---------- ---------- ---------- ----------
Total 11,671,944 1,854 1,891 5,475,602 1,706
========== ========== ========== ========== ==========
Margaret K. Rosenheim
For -- 1,850 1,889 -- 1,706
Withhold -- 4 2 -- --
---------- ---------- ---------- ---------- ----------
Total -- 1,854 1,891 -- 1,706
========== ========== ========== ========== ==========
Timothy R. Schwertfeger
For -- 1,850 1,889 -- 1,706
Withhold -- 4 2 -- --
---------- ---------- ---------- ---------- ----------
Total -- 1,854 1,891 -- 1,706
========== ========== ========== ========== ==========
RATIFICATION OF AUDITORS
WAS REACHED AS FOLLOWS:
For 11,446,118 1,854 1,884 5,370,936 1,698
Against 77,459 -- -- 41,329 --
Abstain 148,367 -- 7 63,337 8
---------- ---------- ---------- ---------- ----------
Total 11,671,944 1,854 1,891 5,475,602 1,706
========== ========== ========== ========== ==========
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN INSURED CALIFORNIA PREMIUM INCOME MUNICIPAL FUND, INC. (NPC)
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
$ 3,725,000 California Housing Finance Agency, Multi-Unit
Rental Housing Revenue Bonds, 1992 Series A,
6.625%, 2/01/24 (Alternative Minimum Tax) A1 2/03 at 102 $ 3,815,704
4,000,000 California Pollution Control Financing Authority,
Pollution Control Revenue Bonds (Southern
California Edison Company), 1992 Series B,
6.400%, 12/01/24 (Alternative Minimum Tax) Aaa 12/02 at 102 4,254,280
4,000,000 California Statewide Communities Development
Authority, Sutter Health Obligated Group,
Certificates of Participation, 6.125%, 8/15/22 Aaa 8/02 at 102 4,098,400
4,000,000 City of Chula Vista, Industrial Development Revenue
Bonds, (San Diego Gas and Electric Company),
1992 Series A, 6.400%, 12/01/27 (Alternative
Minimum Tax) A1 12/02 at 102 4,118,600
2,000,000 Cucamonga County Water District (San Bernardino
County, California), Certificates of Participation
(1992 Water Facilities Refinancing),
6.300%, 9/01/12 Aaa 9/01 at 102 2,129,520
6,000,000 Huntington Park Redevelopment Agency, Single
Family Residential Mortgage Revenue Refunding
Bonds, 1986 Series A, 8.000%, 12/01/19 Aaa No Opt. Call 7,928,400
4,000,000 The City of Los Angeles (California), Tax-Exempt
Mortgage Revenue Refunding Bonds, Series 1993A
(FHA Insured Mortgage Loans-Section 8 Assisted
Projects), 6.300%, 1/01/25 Aaa 7/02 at 102 4,089,600
4,000,000 The City of Los Angeles, California, Wastewater
System Revenue Bonds, Series 1991-A,
7.100%, 2/01/21 (Pre-refunded to 2/01/99) Aaa 2/99 at 102 4,316,800
The City of Los Angeles, California, Wastewater
System Revenue Bonds, Series 1993-D:
3,250,000 4.700%, 11/01/17 Aaa 11/03 at 102 2,838,323
11,000,000 4.700%, 11/01/19 Aaa 11/03 at 102 9,489,700
3,750,000 City of Los Angeles, California, Wastewater System
Revenue Bonds, Series 1991-D, 6.700%, 12/01/21
(Pre-refunded to 12/01/00) Aaa 12/00 at 102 4,151,475
4,000,000 Los Angeles County Metropolitan Transportation
Authority (California), Proposition A, Sales Tax
Revenue Refunding Bonds, Series 1993-A,
5.000%, 7/01/21 Aaa 7/03 at 100 3,611,640
5,000,000 Los Angeles County Metropolitan Transit Authority,
Proposition C Sales Tax Revenue Second Senior
Bonds, Series 1993-B, 4.750%, 7/01/13 Aaa 7/03 at 102 4,543,500
3,315,000 Los Angeles County Public Works Financing
Authority, Lease Revenue Refunding Bonds (County
of Los Angeles 1996 Master Refunding Project),
Series B, 5.250%, 9/01/12 Aaa 9/06 at 102 3,246,181
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
$ 4,015,000 Los Angeles County Transportation Commission
(California), Sales Tax Revenue Bonds, Series 1991-A,
6.750%, 7/01/18 (Pre-refunded to 7/01/01) Aaa 7/01 at 102 $ 4,479,977
4,000,000 Norco Redevelopment Agency, Norco Redevelopment
Project Area No. One 1992 Refunding Tax
Allocation Bonds, 6.250%, 3/01/19 Aaa 3/02 at 102 4,220,440
5,135,000 Community Redevelopment Agency of the City of
Palmdale, Restructured Single Family Mortgage
Revenue Bonds, Series 1986A (Escrowed to
Maturity), 8.000%, 3/01/16 (Alternative
Minimum Tax) Aaa No Opt. Call 6,676,630
4,450,000 County of Riverside Asset Leasing Corporation,
Leasehold Revenue Bonds, 1989 Series A (County
of Riverside Hospital Project), 7.200%, 6/01/10
(Pre-refunded to 6/01/99) Aaa 6/99 at 102 4,838,129
6,220,000 County of Riverside, California, Single Family
Mortgage Revenue Bonds (GNMA Mortgage-
Backed Securities Program) Issue A of 1987,
9.000%, 5/01/21 (Alternative Minimum Tax) Aaa No Opt. Call 8,996,546
2,000,000 Sacramento Municipal Utility District (California),
Electric Revenue Refunding Bonds, 1992 Series A,
5.750%, 8/15/13 Aaa 8/02 at 100 2,028,440
5,000,000 Sacramento Municipal Utility District (California),
Electric Revenue Refunding Bonds, 1993 Series G,
4.750%, 9/01/21 Aaa 9/03 at 100 4,320,650
2,135,000 City of San Buenaventura, California, 1993 Refunding
Certificates of Participation (Capital Improvements
Project), 5.500%, 1/01/17 Aaa 1/03 at 100 2,075,818
4,000,000 Airports Commission, City and County of San
Francisco, California, San Francisco International
Airport, Second Series Refunding Revenue Bonds,
Issue 3 Bonds, 6.200%, 5/01/20 (Alternative
Minimum Tax) Aaa 5/03 at 102 4,161,960
1,000,000 Airports Commission of the City and County of San
Francisco, California, San Francisco International
Airport, Second Series Revenue Bonds, Issue 8B,
6.000%, 5/01/15 Aaa 5/04 at 101 1,032,140
1,000,000 City and County of San Francisco, General Purpose
Sewer Revenue Bonds, Series 1991, 6.500%, 10/01/21
(Pre-refunded to 10/01/99) Aaa 10/99 at 102 1,081,420
4,000,000 San Francisco Bay Area Rapid Transit District, Sales
Tax Revenue Bonds, Series 1995, 5.500%, 7/01/15 Aaa 7/05 at 101 3,988,240
9,500,000 Redevelopment Agency of the City of San Jose,
Merged Area Redevelopment Project, Tax
Allocation Bonds, Series 1993, 4.750%, 8/01/24 Aaa 2/04 at 102 8,178,930
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
$ 1,485,000 City of San Jose, California, Single Family Mortgage
Revenue Bonds, 1985 Series A (Escrowed to
Maturity), 9.500%, 10/01/13 Aaa No Opt. Call $ 2,104,587
5,440,000 City of Santa Monica, Wastewater Enterprise Revenue
Bonds (Hyperion Project), 1993 Refunding Series,
4.500%, 1/01/15 Aaa 1/04 at 102 4,717,296
2,670,000 The Regents of the University of California,
Refunding Revenue Bonds (Multiple Purpose
Projects), Series B, 4.750%, 9/01/21 Aaa 9/03 at 102 2,307,226
5,000,000 Wheeler Ridge-Maricopa Water Storage District
(Kern County, California), 1996 Water Refunding
Bonds, 5.700%, 11/01/15 Aaa 11/06 at 102 5,076,700
3,425,000 City of Woodland (Yolo County, California),
Certificates of Participation (1992 Wastewater
System Refunding Project), 5.500%, 3/01/18 Aaa 3/03 at 100 3,311,186
- ------------------------------------------------------------------------------------------------------------------
$132,515,000 Total Investments - (cost $125,961,646) - 96.5% 136,228,438
=================-------------------------------------------------------------------------------------------------
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 2.3%
$ 500,000 California Pollution Control Financing Authority,
Pollution Control Revenue Bonds (Shell Oil
Company Project), 1991 Series A, Variable Rate
Demand Bonds, 3.350%, 10/01/08+ VMIG-1 500,000
500,000 Certificates of Participation, California Statewide
Communities Development Authority, Northern
California Retired Officers Community, Variable
Rate Demand Bonds, 3.350%, 6/01/26+ VMIG-1 500,000
2,300,000 Certificates of Participation, California Statewide
Communities Development Authority, St. Joseph
Health System Obligated Group, Variable Rate
Demand Bonds, 3.350%, 7/01/24+ VMIG-1 2,300,000
- -------------------------------------------------------------------------------------------------------------------
$ 3,300,000 Total Temporary Investments - 2.3% 3,300,000
=================--------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.2% 1,662,299
- -------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $141,190,737
===================================================================================================================
<PAGE>
<CAPTION>
NUMBER OF MARKET MARKET
STANDARD & POOR'S MOODY'S SECURITIES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 30 $128,294,134 94%
RATINGS* A+ A1 2 7,934,304 6
PORTFOLIO OF
INVESTMENTS
(EXCLUDING
TEMPORARY
INVESTMENTS):
- ----------------------------------------------------------------------------------------------------------------------
TOTAL 32 $136,228,438 100%
======================================================================================================================
<FN>
All of the bonds in the portfolio, excluding temporary investments in
short-term municipal securities, are either covered by Original Issue
Insurance, Secondary Market Insurance or Portfolio Insurance, or are backed by
an escrow or trust containing sufficient U. S. Government or U. S. Government
agency securities, any of which ensure the timely payment of principal and
interest.
* Ratings: Using the higher of Standard & Poor's or Moody's rating.
** 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.
+ The security has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term security. The rate disclosed
is that currently in effect. This rate changes periodically based on market
conditions or a specified market index.
</FN>
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NUVEEN INSURED CALIFORNIA PREMIUM INCOME MUNICIPAL FUND 2, INC. (NCL)
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
$ 5,000,000 California Educational Facilities Authority Revenue
Bonds (University of San Francisco), Series 1996,
6.000%, 10/01/26 Aaa 10/06 at 102 $ 5,170,700
10,050,000 California Educational Facilities Authority, Revenue
Bonds (Santa Clara University), Series 1991,
5.750%, 9/01/21 Aaa 9/06 at 102 10,087,688
1,450,000 California Health Facilities Financing Authority,
Insured Health Facility Refunding Revenue Bonds
(Mark Twain St. Joseph's Healthcare), 1996 Series A,
6.000%, 7/01/19 Aaa 7/06 at 102 1,481,581
3,110,000 California Health Facilities Financing Authority,
Hospital Revenue Refunding Bonds (Sutter Health),
Series 1989A, 6.700%, 1/01/13 Aaa 1/99 at 101 3,261,146
1,800,000 California Public School District Financing Authority,
Lease Revenue Bonds (Richgrove Elementary School
District Projects), Series 1996B, 5.800%, 9/01/16 Aaa 9/06 at 102 1,818,810
2,000,000 California State University, Housing System Revenue
Bonds, Series 1996, 5.800%, 11/01/17 Aaa 11/05 at 102 2,019,620
3,000,000 State Public Works Board of the State of California
Lease Revenue Bonds (Department of Corrections),
1990 Series A (State Prison-Madera County),
7.000%, 9/01/09 (Pre-refunded to 9/01/00) Aaa 9/00 at 102 3,334,170
2,100,000 State of California, General Obligation Bonds, Veterans
Bond, Series BA, 7.000%, 8/01/02 Aaa No Opt. Call 2,357,544
5,500,000 State of California, Various Purpose General
Obligation Bonds, 5.750%, 11/01/17 Aaa 11/02 at 102 5,531,680
3,000,000 State of Public Works Board of the State of California,
Lease Revenue Refunding Bonds (Department of
Corrections), 1993 Series A (Various State Prisons),
5.000%, 12/01/19 Aaa No Opt. Call 2,778,840
4,000,000 Certificates of Participation (1991 Financing Project),
County of Alameda, California, Alameda County
Public Facilities Corporation, 6.000%, 9/01/21 Aaa 9/06 at 102 4,148,280
7,985,000 County of Alameda, California, 1993 Refunding
Certificates of Participation (Santa Rita Jail Project),
5.700% 12/01/14 Aaa 12/03 at 102 8,089,045
2,000,000 City of Barstow, California, Certificates of Participation
(1994 Wastewater Reclamation Improvement
Project), 5.250%, 10/01/18 Aaa 10/04 at 102 1,871,260
2,575,000 Calipatria Unified School District, Imperial County,
California, 1996 Series A, General Obligation
Bonds, 5.625%, 8/01/13 Aaa 8/06 at 102 2,611,745
3,530,000 Castaic Lake Water Agency (California), Refunding
Revenue Certificates of Participation (Water
System Improvement Projects), Series 1994A,
8.000%, 8/01/04 Aaa No Opt. Call 4,245,496
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
$ 3,000,000 Central Unified School District (Fresno County,
California), General Obligation Bonds, Election
1992, 5.625%, 3/01/18 Aaa 3/03 at 102 $ 2,924,250
1,925,000 Chino Basin Regional Financing Authority Revenue
Bonds, Series 1994 (Chino Basin Municipal Water
District Sewer System Project), 6.000%, 8/01/16 Aaa 8/04 at 102 1,989,950
5,000,000 Community Redevelopment Agency of the City of
Compton, California, Compton Redevelopment
Project, Refunding Tax Allocation Bonds, Series
1995A (Project Tax Revenues, Subventions and
Housing Tax Revenues), (Insured/Tax Exempt),
6.500%, 8/01/13 Aaa 8/05 at 102 5,480,150
6,000,000 Contra Costa Water Authority (Contra Costa County,
California), Water Treatment Revenue Refunding
Bonds, 1993 Series A, 5.750%, 10/01/20 Aaa 10/02 at 102 6,016,080
4,000,000 County of Contra Costa County, California (Merrithew
Memorial Hospital Replacement Project), Refunding
Series of 1997, 5.500%, 11/01/22 (DD) Aaa 11/07 at 102 3,874,120
3,000,000 Escondido Union High School District, San Diego
County, California, General Obligation Bonds
(1996 Election), 5.700%, 11/01/10 Aaa 11/06 at 102 3,129,000
8,000,000 Galt Community Facility District, Special Tax #88-1,
7.700%, 9/01/19 (Pre-refunded to 9/01/98) Aaa 9/98 at 102 8,626,640
1,000,000 Kern High School District (County of Kern,
California), General Obligation Bonds, Election
or 1990, Series D, 5.600%, 8/01/15
(Pre-refunded to 8/01/03) Aaa 8/03 at 102 1,028,190
5,020,000 The Community Redevelopment Agency of the City
of Los Angeles, California, Multifamily Housing
Revenue Refunding Bonds, 1995 Series A (Angelus
Plaza Project), 7.400%, 6/15/10 AAA 6/05 at 105 5,630,683
6,750,000 Los Angeles County Metropolitan Transit Authority,
Proposition CSales Tax Revenue Second Senior
Bonds, Series 1993-B, 5.250%, 7/01/23 Aaa 7/03 at 102 6,255,630
5,585,000 Los Angeles County Transportation Commission
(California), Sales Tax Revenue Refunding Bonds,
Series 1991-B, 6.500%, 7/01/13 Aaa 7/01 at 102 6,090,722
2,135,000 Menifee Union School District (Riverside County,
California), Certificates of Participation (1996
School Project), 6.125%, 9/01/24 Aaa 9/06 at 102 2,231,908
13,000,000 The Metropolitan Water District of Southern
California, Water Revenue Bonds, 1995 Series A,
5.750%, 7/01/21 Aaa 7/05 at 102 13,044,070
3,215,000 Modesto Irrigation District Financing Authority,
Refunding Revenue Bonds, Series A,
6.000%, 10/01/15 Aaa 10/06 at 102 3,365,687
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
$ 3,300,000 Mt. Diablo Unified School District, Community
Facilities District No. 1 (Contra Costa County,
California), Series 1996, Special Tax Bonds,
5.375%, 8/01/26 Aaa 8/06 at 101 $ 3,154,470
2,000,000 Transmission Agency of Northern California,
California-Oregon Transmission Project, Revenue
Bonds, 1990 Series A, 7.000%, 5/01/24 (Pre-
refunded to 5/01/00) Aaa 5/00 at 101 1/2 2,197,560
2,690,000 Norwalk Community Facilities Financing Authority
(Los Angeles County, California), Tax Allocation
Refunding Revenue Bonds, 1995 Series A,
6.000%, 9/01/15 Aaa 9/05 at 102 2,809,221
4,900,000 County of Orange, California, Airport Revenue
Bonds, Series 1987, 6.625%, 7/01/18 (Alternative
Minimum Tax) A 7/97 at 100 4,914,945
2,000,000 City of Oxnard Financing Authority, Wastewater
Revenue Refunding Bonds, Series 1993,
5.500%, 6/01/14 Aaa 6/03 at 100 1,996,500
9,000,000 City of Redlands, California, Certificates of
Participation (1993 Refunding of 1986 and 1987
Projects), 5.800%, 9/01/17 Aaa 9/03 at 102 9,032,850
4,280,000 Redlands Unified School District, County of San
Bernardino, California, 1993 General Obligation
Bonds, Series A, 5.500%, 7/01/14 Aaa 7/03 at 101 4,272,553
4,320,000 County of Riverside, California, Single Family
Mortgage Revenue Bonds (GNMA Mortgage-
Backed Securities Program), Issue B of 1987,
8.625%, 5/01/16 (Alternative MinimumTax) Aaa No Opt. Call 5,884,574
5,000,000 Riverside County Transportation Commission, Sales
Tax Revenue Bonds, 1991 Series A (California),
6.500%, 6/01/09 (Pre-refunded to 6/01/01) Aaa 6/01 at 102 5,524,450
5,500,000 Sacramento Municipal Utility District (California),
Electric Revenue Bonds, 1993 Series E,
5.750%, 5/15/22 Aaa 5/03 at 102 5,515,510
3,290,000 City and County of San Francisco, General Obligation
Bonds, Various Purpose Bonds, Series 1993,
5.500%, 6/15/11 Aaa 6/01 at 102 3,327,177
9,000,000 Airports Commission of the City and County of San
Francisco, California, San Francisco International
Airport, Second Series Revenue Bonds, Issue 8B,
6.100%, 5/01/20 Aaa 5/04 at 101 9,306,000
2,500,000 City and County of San Francisco, General Purpose
Sewer Revenue Bonds, Series 1991,
6.500%, 10/01/21 (Pre-refunded to 10/01/99) Aaa 10/99 at 102 2,703,550
2,900,000 City and County of San Francisco, Sewer Revenue
Refunding Bonds, Series 1992, 5.500%, 10/01/15 Aaa 10/02 at 102 2,863,286
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
$ 3,750,000 City of San Jose, California, Airport Revenue Bonds,
Series of 1993, 5.700%, 3/01/18 (Alternative
Minimum Tax) Aaa 3/03 at 102 $ 3,658,125
7,400,000 Housing Authority of the County of Santa Cruz, Tax-
Exempt Multifamily Housing Revenue Refunding
Bonds, Series 1993A (GNMA Collateralized-
Meadowview Apartments), 6.125%, 5/20/28 Aaa 5/03 at 102 7,506,486
1,930,000 Santa Margarita/Dana Point Authority, Orange
County, California, Revenue Bonds Series A (1994
Improvement Districts Nos. 1, 2, 2A and 8 General
Obligation Bond Refinancing), 7.250%, 8/01/05 Aaa No Opt. Call 2,271,687
4,000,000 Santa Monica Community, College District (County
of Los Angeles, California), General Obligation
Bonds, 1992 Election, Series B, 5.750%, 7/01/20 Aaa 7/05 at 102 4,013,560
South Orange County, Public Financing Authority,
Special Tax Revenue Bonds, 1994 Series C
(Foothill Area):
4,000,000 8.000%, 8/15/08 Aaa No Opt. Call 5,035,360
3,680,000 8.000%, 8/15/09 Aaa No Opt. Call 4,649,496
4,000,000 South San Joaquin Irrigation District (San Joaquin
County, California), 1993 Refunding Revenue
Certificates of Participation (1987 Project and
1992 Project), 5.500%, 1/01/15 Aaa 1/03 at 102 3,950,480
4,140,000 Redevelopment Agency of the City of Suisun City,
Suisun City Redevelopment Project, 1993 Tax
Allocation Refunding Bonds (County of Solano,
California), 5.900%, 10/01/23 Aaa 10/03 at 102 4,223,255
1,765,000 City of Torrance, Floating Rate Demand Hospital
Revenue Bonds (Little Company of Mary Hospital),
1985 Series A, 7.100%, 12/01/15 (Pre-refunding
to 12/01/05) AAA 12/05 at 100 1,993,303
5,410,000 City of Tulare, California, 1996 Sewer Revenue
Bonds, 5.750%, 11/15/21 Aaa 11/06 at 102 5,430,071
11,750,000 Turlock Irrigation District (California), Revenue
Refunding Bonds, Series 1992-A, 5.750%, 1/01/18 Aaa 7/02 at 100 11,794,415
3,000,000 The Regents of the University of California,
Refunding Revenue Bonds (1989 Multiple Purpose
Projects) Series C, 10.000%, 9/01/02 Aaa No Opt. Call 3,790,050
4,900,000 The Regents of the University of California,
University of California Housing System Revenue
Bonds, Series A, 5.500%, 11/01/18 Aaa 11/03 at 102 4,740,015
6,350,000 The Regents of the University of California,
Refunding Revenue Bonds (Multiple Purpose
Projects), Series C, 5.000%, 9/01/12 Aaa 9/03 at 102 6,114,477
- -------------------------------------------------------------------------------------------------------------------
$251,485,000 Total Investments - (cost $253,704,198) - 97.6% 261,168,111
=================--------------------------------------------------------------------------------------------------
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 2.5%
$ 800,000 Certificates of Participation, California Statewide
Communities Development Authority, Northern
California Retired Officers Community, Variable
Rate Demand Bonds, 3.350%, 6/01/26+ VMIG-1 $ 800,000
4,400,000 Orange County Sanitation District Certificates
of Participation, Variable Rate Demand Bonds,
3.400%, 8/01/17+ VMIG-1 4,400,000
1,600,000 Orange County Water District Variable Rate
Demand Bonds, 3.250%, 8/15/15+ A-1+ 1,600,000
- --------------------------------------------------------------------------------------------------------------------
$ 6,800,000 Total Temporary Investments - 2.5% 6,800,000
=================---------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - (0.1)% (116,002)
- --------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $267,852,109
====================================================================================================================
<CAPTION>
NUMBER OF MARKET MARKET
STANDARD & POOR'S MOODY'S SECURITIES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 56 $256,253,166 98%
RATINGS* A, A- A, A2, A3 1 4,914,945 2
PORTFOLIO OF
INVESTMENTS
(EXCLUDING
TEMPORARY
INVESTMENTS):
- ---------------------------------------------------------------------------------------------------------------------
TOTAL 57 $261,168,111 100%
=====================================================================================================================
<FN>
All of the bonds in the portfolio, excluding temporary investments in
short-term municipal securities, are either covered by Original Issue
Insurance, Secondary Market Insurance or Portfolio Insurance, or are backed by
an escrow or trust containing sufficient U. S. Government or U. S. Government
agency securities, any of which ensure the timely payment of principal
and interest.
* Ratings: Using the higher of Standard & Poor's or Moody's rating.
** 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.
+ The security has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term security. The rate disclosed
is that currently in effect. This rate changes periodically based on market
conditions or a specified market index. (DD) Security purchased on a delayed
delivery basis (see note 1 of the Notes to Financial Statements).
</FN>
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN CALIFORNIA PREMIUM INCOME MUNICIPAL FUND (NCU)
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
$ 3,500,000 California Educational Facilities Authority, Revenue
Bonds (University of Southern California Project),
Series 1989B, 6.750%, 10/01/15 Aa 10/99 at 102 $ 3,768,450
1,000,000 California Housing Finance Agency, Home Mortgage
Revenue Bonds, 1994 Series A, 6.550%, 8/01/26 Aa 8/04 at 102 1,041,290
2,400,000 California Housing Finance Agency, Home Mortgage
Revenue Bonds, Series 1993-C, 5.650%, 8/01/14 Aa 2/04 at 102 2,373,672
1,000,000 California Housing Finance Agency, Home Mortgage
Revenue Bonds, 1994 Series F-3, 6.100%, 8/01/15
(Alternative Minimum Tax) Aaa 8/05 at 102 1,019,250
2,000,000 California Housing Finance Agency, Home Mortgage
Revenue Bonds, 1997 Series B, 6.000%, 8/01/16
(Alternative Minimum Tax) Aaa 2/07 at 102 2,025,380
2,000,000 California Pollution Control Financing Authority,
Pollution Control Revenue Bonds (Pacific Gas and
Electric Company), 1993 Series A, 5.875%, 6/01/23
(Alternative Minimum Tax) A 6/03 at 102 1,981,040
1,000,000 California Pollution Control Financing Authority,
Pollution Control Revenue Bonds (Pacific Gas and
Electric Company), 1993 Series B,
5.850%, 12/01/23 (Alternative Minimum Tax) A 12/03 at 102 984,740
3,000,000 California Rural Home Mortgage Finance Authority,
Single Family Mortgage Revenue Bonds (Mortgage-
Backed Securities Program) 1996 Series C,
7.500%, 8/01/27 (Alternative MinimumTax) AAA No Opt. Call 3,339,330
4,000,000 California State Public Works Board of the State of
California, Lease Revenue Bonds (Regents of the
University of California), 1992 Series A (Various
University of California Projects),
6.600%, 12/01/22 (Pre-refunded to 12/01/02) Aaa 12/02 at 102 4,525,160
1,995,000 California State Public Works Board, Lease Revenue
Bonds (Various California Community College PJS),
Series 1996A, 5.625%, 3/01/16 Aaa 3/06 at 102 1,996,616
4,000,000 California Statewide Communities Development
Authority, Revenue Certificates of Participation
(Cedars-Sinai Medical Center), 6.500%, 8/01/15 A1 8/02 at 102 4,177,800
3,200,000 State Public Works Board of the State of California,
Lease Revenue Bonds (The Trustees of the
California State University), 1994 Series A
(Various California State University Projects),
6.375%, 10/01/14 A 10/04 at 102 3,392,896
2,105,000 State of California Department of Water Resources,
Central Valley Project Water System Revenue Bonds,
Series Q, 5.250%, 12/01/17 Aa 12/06 at 101 1/2 2,038,882
2,380,000 State of California, Various Purpose General
Obligation Bonds, 6.250%, 9/01/12 A1 No Opt. Call 2,639,753
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
$ 2,000,000 State of California, Various Purpose General
Obligation Refunding Bonds, 5.150%, 10/01/19 A1 10/03 at 102 $ 1,848,000
1,500,000 ABAG Finance Authority for Nonprofit Corporations,
Certificates of Participation (Stanford University
Hospital), California, Series 1993, 5.250%, 11/01/20 A1 11/03 at 102 1,384,410
1,025,000 Calipatria Unified School District, Imperial County,
California 1996 Series A, General Obligation
Bonds, 5.800%, 8/01/20 Aaa 8/06 at 102 1,032,185
2,000,000 Carson Redevelopment Agency (California),
Redevelopment Project Area No. 2, Refunding Tax
Allocation Bonds, Series 1993, 5.875%, 10/01/09 Baa 10/03 at 102 2,013,280
1,760,000 Carson Redevelopment Agency (California),
Redevelopment Project Area No. 1, Tax Allocation
Bonds, Series 1993, 5.625%, 10/01/08 Baa1 10/03 at 102 1,759,155
1,000,000 Eastern Municipal Water District (Riverside County,
California), Water and Sewer Revenue Refunding
Certificates of Participation, Series 1991A,
6.300%, 7/01/20 Aaa 7/01 at 101 1,049,190
4,100,000 Imperial Irrigation District, California, Certificates
of Participation (1994 Electric System Project),
6.000%, 11/01/15 Aaa 11/04 at 102 4,242,516
2,000,000 City of Loma Linda California, Hospital Revenue
Bonds (Loma Linda University Medical Center
Project), Series 1993-A, 6.000%, 12/01/06 BBB 12/03 at 102 2,045,560
2,160,000 Community Redevelopment Financing Authority of
the Community Redevelopment Agency of the
City of Los Angeles, California, Grand Central
Square, Multifamily Housing Bonds, 1993 Series A,
5.750%, 12/01/13 (Alternative Minimum Tax) Ba 6/03 at 102 2,027,246
9,000,000 The Community Redevelopment Agency of the City
of Los Angeles, California, Multifamily Housing
Revenue Refunding Bonds, 1995 Series A (Angelus
Plaza Project), 7.400%, 6/15/10 AAA 6/05 at 105 10,094,850
2,000,000 Department of Water and Power of The City of
Los Angeles, Electric Plant Refunding Revenue
Bonds, Issue of 1993, 5.375%, 9/01/23 Aaa 9/03 at 102 1,884,340
1,000,000 City of Los Angeles, California, Wastewater System
Revenue Bonds, Series 1992-B, 6.250%, 6/01/12 Aaa 6/02 at 102 1,063,020
5,000,000 M-S-R Public Power Agency (California), San Juan
Project Refunding Revenue Bonds, Series 1997H,
5.900%, 7/01/20 (WI) A 7/98 at 100 4,940,250
3,560,000 Northern California Power Agency, Hydroelectric
Project Number One, Revenue Bonds, 1992
Refunding Series A, 10.000%, 7/01/03 Aaa No Opt. Call 4,598,666
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
$ 2,000,000 Revenue Certificates of Participation, Series 1993A,
Orange County Water District, 5.000%, 8/15/18 Aa 8/03 at 100 $ 1,803,820
1,355,000 Palomar Pomerado Health System, Insured Revenue
Bonds, Series 1993, 5.000%, 11/01/13 Aaa 11/03 at 102 1,280,150
1,500,000 City of Pasadena, Electric Works Revenue Bonds,
1990 Series, 7.000%, 8/01/09 A1 8/00 at 102 1,638,225
3,000,000 Pomona Unified School District, General Obligation
Refunding Bonds, Series 1997-A, 6.150%, 8/01/15 Aaa 8/11 at 103 3,246,540
3,515,000 City of Riverside, California, Sewer Refunding
Revenue Bonds, Series 1993, 7.000%, 8/01/07 Aaa No Opt. Call 4,110,230
1,000,000 City of Riverside, California, Water Revenue Bonds,
Issue of 1991, 9.000%, 10/01/01 Aa No Opt. Call 1,190,450
2,100,000 Sacramento City Finance Authority, Lease Revenue
Refunding Bonds, Series 1993 B, 5.400%, 11/01/20 Aa No Opt. Call 2,043,762
1,095,000 Sacramento Municipal Utility District (California),
Electric Revenue Bonds, 1993 Series E,
5.700%, 5/15/12 A 5/03 at 102 1,098,099
2,750,000 Airport Commission, City and County of San
Francisco, California, San Francisco International
Airport, Second Series Revenue Bonds, Issue 5,
6.500%, 5/01/24 (Alternative Minimum Tax) Aaa 5/04 at 102 2,955,013
Airports Commission City and County of San
Francisco, California, San Francisco International
Airport, Second Series Revenue Bonds, Issue 10:
2,000,000 5.625%, 5/01/21 (Alternative Minimum Tax) Aaa 5/06 at 102 1,948,280
2,000,000 5.700%, 5/01/26 (Alternative Minimum Tax) Aaa 5/06 at 102 1,959,440
3,100,000 City and County of San Francisco, Sewer Revenue
Refunding Bonds, Series 1994, 5.375%, 10/01/16 Aaa 10/02 at 102 2,965,987
1,400,000 City of Santa Clara, California, Electric Revenue
Bonds, Series 1991A, 6.250%, 7/01/13 Aaa 7/01 at 102 1,483,538
1,005,000 City of Santa Monica, Wastewater Enterprise Revenue
Bonds (Hyperion Project), 1993 Refunding Series,
12.000%, 1/01/04 Aaa No Opt. Call 1,428,778
1,475,000 Southern California Public Power Authority,
Transmission Project Revenue Bonds, 1992
Subordinate Refunding Series (Southern
Transmission Project), 5.500%, 7/01/20 Aa 7/02 at 100 1,426,900
2,880,000 City of Torrance, Floating Rate Demand Hospital
Revenue Bonds (Little Company of Mary Hospital)
1985 Series A, 7.100%, 12/01/15 (Pre-refunded
to 12/01/05) AAA 12/05 at 100 3,252,528
2,225,000 The Regents of the University of California,
University of California Housing System Revenue
Bonds, Series A, 5.550%, 11/01/18 Aaa 11/03 at 102 2,152,354
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
$ 2,000,000 Washington Township Hospital District, Revenue
Bonds, Series 1993, 5.250%, 7/01/23 A 7/03 at 102 $ 1,835,860
2,000,000 West and Central Basin Financing Authority,
Revenue Bonds (Central Basin Refunding Project),
Series 1993, 5.000%, 8/01/16 Aaa 8/03 at 102 1,831,240
- -------------------------------------------------------------------------------------------------------------------
$110,085,000 Total Investments - (cost $111,826,565) - 96.7% 114,938,121
=================--------------------------------------------------------------------------------------------------
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 3.0%
$ 3,200,000 Certificates of Participation, California Statewide
Communities Development Authority, Northern
California Retired Officers Community, Variable
Rate Demand Bonds, 3.350%, 6/01/26+ VMIG-1 3,200,000
400,000 Irvine Ranch Water District Variable Rate Demand
Bonds, 3.250%, 6/01/15+ VMIG-1 400,000
- --------------------------------------------------------------------------------------------------------------------
$ 3,600,000 Total Temporary Investments - 3.0% 3,600,000
=================---------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 0.3% 335,412
- --------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $118,873,533
====================================================================================================================
<CAPTION>
NUMBER OF MARKET MARKET
STANDARD & POOR'S MOODY'S SECURITIES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 24 $ 65,484,581 57%
RATINGS* AA+, AA, AA- Aa1, Aa, Aa2, Aa3 8 15,687,226 14
PORTFOLIO OF A+ A1 5 11,688,188 10
INVESTMENTS A, A- A, A2, A3 6 14,232,885 12
(EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 3 5,817,995 5
TEMPORARY BB+, BB, BB- Ba1, Ba, Ba2, Ba3 1 2,027,246 2
INVESTMENTS):
- --------------------------------------------------------------------------------------------------------------------
TOTAL 47 $114,938,121 100%
====================================================================================================================
<FN>
* Ratings: Using the higher of Standard & Poor's or Moody's rating.
** 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.
+ The security has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term security. The rate disclosed
is that currently in effect. This rate changes periodically based on market
conditions or a specified market index.
(WI) Security purchased on a when-issued basis (see note 1 of the Notes to
Financial Statements).
</FN>
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF NET ASSETS
(Unaudited)
NPC NCL NCU
<S> <C> <C> <C>
ASSETS
Investments in municipal securities, at market
value (note 1) $136,228,438 $261,168,111 $114,938,121
Temporary investments in short-term municipal
securities, at amortized cost (note 1) 3,300,000 6,800,000 3,600,000
Cash 7,088 196,711 259,130
Receivables:
Interest 2,218,253 4,537,799 1,700,027
Investments sold -- -- 3,935,526
Other assets 15,744 27,646 1,120
------------ ------------ ------------
Total assets 141,769,523 272,730,267 124,433,924
------------ ------------ ------------
LIABILITIES
Payable for investments purchased -- 3,875,396 5,028,181
Accrued expenses:
Management fees (note 6) 70,347 132,268 59,405
Other 64,985 73,737 102,725
Preferred share dividends payable 11,093 16,939 17,317
Common share dividends payable 432,361 779,818 352,763
------------ ------------ ------------
Total liabilities 578,786 4,878,158 5,560,391
------------ ------------ ------------
Net assets (note 7) $141,190,737 $267,852,109 $118,873,533
============ ============ ============
Preferred shares, at liquidation value $ 45,000,000 $ 95,000,000 $ 43,000,000
============ ============ ============
Preferred shares outstanding 1,800 3,800 1,720
============ ============ ============
Common shares outstanding 6,405,350 12,577,707 5,735,977
============ ============ ============
Netasset value per Common share outstanding
(net assets less Preferred
shares at liquidation value,
divided by Common shares outstanding) $ 15.02 $ 13.74 $ 13.23
============ ============ ============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS
Six months ended February 28, 1997
(Unaudited)
NPC NCL NCU
<S> <C> <C> <C>
INVESTMENT INCOME
Tax-exempt interest income (note 1) $ 3,968,586 $ 7,354,213 $ 3,338,152
------------ ------------ ------------
Expenses:
Management fees (note 6) 452,003 849,625 381,063
Preferred shares--auction fees 56,250 118,750 53,750
Preferred shares--dividend disbursing agent fees 7,401 9,867 7,716
Shareholders' servicing agent fees and expenses 6,942 10,170 4,920
Custodian's fees and expenses 22,019 28,504 21,157
Directors'/Trustees' fees and expenses (note 6) 786 1,300 640
Professional fees 11,003 10,202 4,914
Shareholders' reports--printing and mailing expenses 8,257 23,869 13,081
Stock exchange listing fees 8,107 12,161 2,639
Investor relations expense 4,896 8,763 4,039
Portfolio insurance expense 5,784 7,109 --
Other expenses 7,149 9,801 6,910
------------ ------------ ------------
Total expenses 590,597 1,090,121 500,829
------------ ------------ ------------
Net investment income 3,377,989 6,264,092 2,837,323
------------ ------------ ------------
REALIZED AND UNREALIZED GAIN
(LOSS) FROM INVESTMENTS
Net realized gain (loss) from investment transactions
(notes 1 and 3) 69,277 (199,644) (459,755)
Net change in unrealized appreciation or depreciation
of investments 3,423,568 6,047,195 3,401,606
------------ ------------ ------------
Net gain from investments 3,492,845 5,847,551 2,941,851
------------ ------------ ------------
Net increase in net assets from operations $ 6,870,834 $ 12,111,643 $ 5,779,174
============ ============ ============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS
(Unaudited)
NPC NCL
Six months ended Year ended Six months ended Year ended
2/28/97 8/31/96 2/28/97 8/31/96
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 3,377,989 $ 6,730,275 $ 6,264,092 $ 12,507,290
Net realized gain (loss) from investment transactions
(notes 1 and 3) 69,277 (563,462) (199,644) (1,714,194)
Net change in unrealized appreciation or depreciation
of investments 3,423,568 662,762 6,047,195 4,801,344
------------- ------------- ------------- -------------
Net increase in net assets from operations 6,870,834 6,829,575 12,111,643 15,594,440
------------- ------------- ------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS (note 1)
From undistributed net investment income:
Common shareholders (2,594,168) (5,073,040) (4,678,907) (9,357,813)
Preferred shareholders (695,813) (1,470,134) (1,431,862) (3,013,164)
------------- ------------- ------------- -------------
Decrease in net assets from distributions
to shareholders (3,289,981) (6,543,174) (6,110,769) (12,370,977)
------------- ------------- ------------- -------------
Net increase in net assets 3,580,853 286,401 6,000,874 3,223,463
Net assets at beginning of period 137,609,884 137,323,483 261,851,235 258,627,772
------------- ------------- ------------- -------------
Net assets at end of period $ 141,190,737 $ 137,609,884 $ 267,852,109 $ 261,851,235
============= ============= ============= =============
Balance of undistributed net investment income
at end of period $ 396,621 $ 308,613 $ 620,712 $ 467,389
============= ============= ============= =============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NCU
Six months ended Year ended
2/28/97 8/31/96
<S> <C> <C>
OPERATIONS
Net investment income $ 2,837,323 $ 5,645,423
Net realized gain (loss) from investment transactions
(notes 1 and 3) (459,755) (1,120,843)
Net change in unrealized appreciation or depreciation
of investments 3,401,606 2,668,037
------------- -------------
Net increase in net assets from operations 5,779,174 7,192,617
------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS (note 1)
From undistributed net investment income:
Common shareholders (2,116,577) (4,233,153)
Preferred shareholders (657,615) (1,394,718)
------------- -------------
Decrease in net assets from distributions
to shareholders (2,774,192) (5,627,871)
------------- -------------
Net increase in net assets 3,004,982 1,564,746
Net assets at beginning of period 115,868,551 114,303,805
------------- -------------
Net assets at end of period $ 118,873,533 $ 115,868,551
============= =============
Balance of undistributed net investment income
at end of period $ 247,218 $ 184,087
============= =============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
1. GENERAL INFORMATION AND SIGNIFICANT
ACCOUNTING POLICIES
At February 28, 1997, the California Funds (the
"Funds") covered in this report and their
corresponding stock exchange symbols are Nuveen
Insured California Premium Income Municipal Fund, Inc.
(NPC), Nuveen Insured California Premium Income
Municipal Fund 2, Inc. (NCL) and Nuveen California
Premium Income Municipal Fund (NCU). NPC and NCL are
traded on the New York Stock Exchange while NCU is
traded on the American Stock Exchange.
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 Portfolio securities for which market
quotations are readily available are valued at the
mean between the quoted bid and asked prices or the
yield equivalent. Portfolio securities for which
market quotations are not readily available are valued
at fair value by consistent application of methods
determined in good faith by the Board of
Directors/Trustees. Temporary investments in
securities that have variable rate and demand features
qualifying them as short-term securities are traded
and valued at amortized cost.
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 be settled
a month or more after the transaction date. The
securities so purchased are subject to market
fluctuation during this period. The Funds have
instructed the custodian to segregate assets in a
separate account with a current value at least equal
to the amount of their purchase commitments. At
February 28, 1997, NCL and NCU had outstanding
purchase commitments that amounted to $3,875,396 and
$5,028,181, respectively. There were no such purchase
commitments in NPC.
<PAGE>
Interest Income Interest income is determined on the basis of
interest accrued, adjusted for amortization of
premiums and accretion of discounts on long-term debt
securities when required for federal income tax
purposes.
Income Taxes The Funds intend to comply with the requirements of
the Internal Revenue Code applicable to regulated
investment companies and to distribute to shareholders
all of their 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 $.01 per Common
share. Furthermore, each Fund intends to satisfy
conditions which will enable interest from municipal
securities, which is exempt from regular federal and
California state income taxes, to retain such
tax-exempt status when distributed to shareholders
of the Funds. Net realized capital gain and market
discount distributions are subject to federal
taxation.
Dividends and Tax-exempt net investment income is declared as a
Distributions to dividend monthly and payment is made or reinvestment
Shareholders is credited to shareholder accounts after month-end.
Net realized capital gains and/or market discount
from investment transactions are distributed to
shareholders not less frequently than annually.
Furthermore, capital gains are distributed only to
the extent they exceed available capital loss
carryovers.
Distributions to shareholders of tax-exempt net
investment income, net realized capital gains and/or
market discount are recorded on the ex-dividend date.
The amount and timing of distributions are determined
in accordance with federal income tax regulations,
which may differ from generally accepted accounting
principles. Accordingly, temporary over-distributions
as a result of these differences may occur and will be
classified as either distributions in excess of net
investment income, distributions in excess of net
realized gains and/or distributions in excess of net
ordinary taxable income from investment transactions,
where applicable.
<PAGE>
Preferred Shares The Funds 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 Preferred
shares outstanding, by Series and in total, at
February 28, 1997, is as follows:
<TABLE>
<CAPTION>
NPC NCL NCU
<S> <C> <C> <C>
Number of shares:
Series M -- -- 1,720
Series T 1,800 1,900 --
Series Th -- 1,900 --
----- ----- -----
Total 1,800 3,800 1,720
===== ===== =====
</TABLE>
Insurance NPC and NCL invest in municipal securities which are
either covered by insurance or are backed by an escrow
or trust account containing sufficient U.S.
Government or U.S. Government agency securities, both
of which ensure the timely payment of principal and
interest. Each insured municipal security is covered
by Original Issue Insurance, Secondary Market
Insurance or Portfolio Insurance. Such insurance does
not guarantee the market value of the municipal
securities or the value of the Funds' shares. Original
Issue Insurance and Secondary Market Insurance remain
in effect as long as the municipal securities covered
thereby remain outstanding and the insurer remains in
business, regardless of whether the Funds ultimately
dispose of such municipal securities. Consequently,
the market value of the municipal securities covered
by Original Issue Insurance or Secondary Market
Insurance may reflect value attributable to the
insurance. Portfolio Insurance is effective only while
the municipal securities are held by the Funds.
Accordingly, neither the prices used in determining
the market value of the underlying municipal
securities nor the net asset value of the Funds'
shares include value, if any, attributable to the
Portfolio Insurance. Each policy of the Portfolio
Insurance does, however, give the Funds the right to
obtain permanent insurance with respect to the
municipal security covered by the Portfolio Insurance
policy at the time of its sale.
Derivative Financial The Funds may invest in transactions in certain
Instruments derivative financial instruments including futures,
forward, swap, and option contracts, and other
financial instruments with similar characteristics.
Although the Funds are authorized to invest in such
financial instruments, and may do in the future, they
did not make any such investments during the six
months ended February 28, 1997.
Use of Estimates The preparation of financial statements
in conformity with generally accepted accounting
principles requires management to make estimates and
assumptions that affect the reported amounts of assets
and liabilities at the date of the financial
statements and the reported amounts of increases and
decreases in net assets from operations during the
reporting period.
2. FUND SHARES
There were no share transactions during the six months
ended February 28, 1997, nor during the fiscal year
ended August 31, 1996, in any of the Funds.
<PAGE>
3. SECURITIES TRANSACTIONS
Purchases and sales (including maturities) of
investments in municipal securities and temporary
municipal investments during the six months ended
February 28, 1997, were as follows:
<TABLE>
<CAPTION>
NPC NCL NCU
<S> <C> <C> <C>
PURCHASES
Investments in municipal securities $4,458,424 $30,916,949 $28,598,084
Temporary municipal investments 4,900,000 17,500,000 11,565,000
SALES AND MATURITIES
Investments in municipal securities 4,858,140 32,272,827 27,500,721
Temporary municipal investments 4,100,000 16,310,000 10,565,000
========== =========== ===========
</TABLE>
At February 28, 1997, the identified cost of
investments owned for federal income tax purposes was
the same as the cost for financial reporting purposes
for each Fund.
At August 31, 1996, the Funds' last fiscal year end,
the Funds had unused capital loss carryovers
available for federal income tax purposes to be
applied against future capital gains, if any. If not
applied, the carryovers will expire as follows:
<TABLE>
<CAPTION>
NPC NCL NCU
<S> <C> <C> <C>
Expiration year:
2001 $ 10,001 $ -- $ --
2002 -- -- 1,175,783
2003 2,373,250 3,896,131 1,893,938
2004 228,384 4,345,091 2,742,449
---------- ---------- ----------
Total $2,611,635 $8,241,222 $5,812,170
=========== =========== ===========
</TABLE>
<PAGE>
4. DISTRIBUTIONS TO COMMON SHAREHOLDERS
On March 3, 1997, the Funds declared Common share
dividend distributions from their tax-exempt net
investment income which were paid April 1, 1997, to
shareholders of record on March 15, 1997, as follows:
<TABLE>
<CAPTION>
NPC NCL NCU
<S> <C> <C> <C>
Dividend per share $.0675 $.0620 $.0615
====== ====== ======
</TABLE>
5. UNREALIZED APPRECIATION (DEPRECIATION)
Gross unrealized appreciation and gross unrealized
depreciation of investments at February 28, 1997, were
as follows:
<TABLE>
<CAPTION>
NPC NCL NCU
<S> <C> <C> <C>
Gross unrealized:
Appreciation $10,266,792 $7,463,913 $3,413,006
Depreciation -- -- (301,450)
------------ ----------- ----------
Net unrealized appreciation $10,266,792 $7,463,913 $3,111,556
=========== ========== ===========
</TABLE>
<PAGE>
6. MANAGEMENT FEE AND OTHER TRANSACTIONS
WITH AFFILIATES
Under the Funds' investment management agreements with
Nuveen Advisory Corp. (the "Adviser"), a wholly owned
subsidiary of The John Nuveen Company, each Fund pays
to the Adviser an annual management fee, payable
monthly, at the rates set forth below, which are based
upon the average daily net asset value of each Fund:
<TABLE>
<CAPTION>
AVERAGE DAILY NET ASSET VALUE MANAGEMENT FEE
<S> <C>
For the first $125 million .6500 of 1%
For the next $125 million .6375 of 1
For the next $250 million .6250 of 1
For the next $500 million .6125 of 1
For the next $1 billion .6000 of 1
For net assets over $2 billion .5875 of 1
</TABLE>
The fee compensates the Adviser for overall investment
advisory and administrative services and general
office facilities. The Funds pay no compensation
directly to those Directors/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.
<PAGE>
7. COMPOSITION OF NET ASSETS At February 28, 1997, net
assets consisted of:
<TABLE>
<CAPTION>
NPC NCL NCU
<S> <C> <C> <C>
Preferred shares, $25,000 stated value per share, at
liquidation value $ 45,000,000 $ 95,000,000 $ 43,000,000
Common shares, $.01 par value per share 64,054 125,777 57,360
Paid-in surplus 88,572,855 174,386,019 79,655,810
Balance of undistributed net investment income 396,621 620,712 247,218
Accumulated net realized gain (loss) from investment
transactions (3,109,585) (9,744,312) (7,198,411)
Net unrealized appreciation of investments 10,266,792 7,463,913 3,111,556
------------- ------------- -------------
Net assets $ 141,190,737 $ 267,852,109 $ 118,873,533
============= ============= =============
Authorized shares:
Common 200 million 200 million Unlimited
Preferred 1 million 1 million Unlimited
============= ============= =============
</TABLE>
<PAGE>
8. INVESTMENT COMPOSITION
Each Fund invests in municipal securities which
include general obligation, escrowed and revenue
bonds. At February 28, 1997, the revenue sources by
municipal purpose for these investments, expressed as
a percent of total investments, were as follows:
<TABLE>
<CAPTION>
NPC NCL NCU
<S> <C> <C> <C>
Revenue Bonds:
Water / Sewer Facilities 20% 16% 15%
Electric Utilities 5 8 17
Housing Facilities 6 5 17
Educational Facilities 2 12 10
Lease Rental Facilities 4 12 2
Health Care Facilities 3 2 9
Transportation 4 7 6
Pollution Control Facilities 6 -- 3
Other 18 15 6
General Obligation Bonds -- 11 8
Escrowed Bonds 32 12 7
----- ----- -----
100% 100% 100%
===== ===== =====
</TABLE>
<PAGE>
Certain long-term and intermediate-term investments
owned by the Funds are either covered by insurance
issued by several private insurers or are backed by an
escrow or trust containing U.S. Government or U.S.
Government agency securities, both of which ensure the
timely payment of principal and interest in the event
of default (100% for NPC, 100% for NCL and 45% for
NCU). Such insurance or escrow, however, does not
guarantee the market value of the municipal securities
or the value of any of the Funds' shares.
All of the temporary investments in short-term
municipal securities have credit enhancements (letters
of credit, guarantees or insurance) issued by third
party domestic or foreign banks or other institutions.
For additional information regarding each investment
security, refer to the Portfolio of Investments of
each Fund.
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
(Unaudited)
SELECTED DATA FOR A COMMON SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
Dividends from tax-exempt
Operating performance net investment income
Net
realized &
Net asset Net unrealized
value invest- gain (loss) To To
beginning ment from invest- Common Preferred
of period income ments shareholders shareholders+
NPC
<S> <C> <C> <C> <C> <C>
Six mos. ended
2/28/97 $14.460 $ .528 $ .546 $(.405) $(.109)
Year ended 8/31,
1996 14.410 1.051 .021 (.792) (.230)
1995 13.720 1.053 .722 (.828) (.257)
1994 15.310 1.066 (1.609) (.847) (.200)
11/19/92 to
8/31/93 14.050 .640 1.445 (.500) (.108)
<CAPTION>
NCL
<S> <C> <C> <C> <C> <C>
Six mos. ended
2/28/97 13.270 .498 .458 (.372) (.114)
Year ended 8/31,
1996 13.010 .995 .249 (.744) (.240)
1995 12.750 1.017 .297 (.787) (.267)
1994 14.570 1.020 (1.851) (.817) (.172)
3/18/93 to
8/31/93 14.050 .247 .655 (.192) (.023)
<CAPTION>
NCU
<S> <C> <C> <C> <C> <C>
Six mos. ended
2/28/97 12.700 .495 .519 (.369) (.115)
Year ended 8/31,
1996 12.430 .984 .267 (.738) (.243)
1995 12.010 1.002 .460 (.766) (.276)
1994 14.470 .973 (2.259) (.815) (.168)
6/18/93 to
8/31/93 14.050 .080 .438 -- --
<PAGE>
<CAPTION>
Distributions from capital gains
Per
Organization Common
and offering share
costs and market
To To Preferred share Net asset value
Common Preferred underwriting value end end of
shareholders shareholders+ discounts of period period
NPC
<S> <C> <C> <C> <C> <C>
Six mos. ended
2/28/97 $ -- $ -- $ -- $15.020 $13.750
Year ended 8/31,
1996 -- -- -- 14.460 13.875
1995 -- -- -- 14.410 12.750
1994 -- -- -- 13.720 13.000
11/19/92 to
8/31/93 -- -- (.217) 15.310 15.500
<CAPTION>
NCL
<S> <C> <C> <C> <C> <C>
Six mos. ended
2/28/97 -- -- -- 13.740 12.875
Year ended 8/31,
1996 -- -- -- 13.270 12.500
1995 -- -- -- 13.010 11.500
1994 -- -- -- 12.750 11.875
3/18/93 to
8/31/93 -- -- (.167) 14.570 14.875
<CAPTION>
NCU
<S> <C> <C> <C> <C> <C>
Six mos. ended
2/28/97 -- -- -- 13.230 12.625
Year ended 8/31,
1996 -- -- -- 12.700 11.875
1995 -- -- -- 12.430 10.750
1994 (.023) (.004) (.164) 12.010 11.125
6/18/93 to
8/31/93 -- -- (.098) 14.470 14.875
<PAGE>
<CAPTION>
Ratios/Supplemental data
Total
invest- Ratio of
ment net
return Total Net assets Ratio of investment
on return on end of expenses income Portfolio
market net asset period (in to average to average turnover
value** value** thousands) net assets++ net assets++ rate
NPC
<S> <C> <C> <C> <C> <C> <C>
Six mos. ended
2/28/97 2.03% 6.70% $141,191 .85%* 4.84%* 3%
Year ended 8/31,
1996 15.39 5.83 137,610 .85 4.81 9
1995 4.67 11.68 137,323 .89 5.10 24
1994 (10.88) (4.99) 132,806 .85 4.94 29
11/19/92 to
8/31/93 6.80 12.73 142,812 .88* 4.45* 20
<CAPTION>
NCL
<S> <C> <C> <C> <C> <C> <C>
Six mos. ended
2/28/97 6.04 6.38 267,852 .82* 4.74* 12
Year ended 8/31,
1996 15.36 7.76 261,851 .83 4.73 27
1995 3.55 8.80 258,628 .84 5.11 24
1994 (15.01) (7.07) 255,244 .84 4.80 24
3/18/93 to
8/31/93 .49 5.11 277,948 .86* 3.46* --
<CAPTION>
NCU
<S> <C> <C> <C> <C> <C> <C>
Six mos. ended
2/28/97 9.52 7.12 118,874 .85* 4.84* 24
Year ended 8/31,
1996 17.51 8.15 115,869 .88 4.83 25
1995 3.65 10.53 114,304 1.05 5.08 26
1994 (20.07) (11.51) 69,710 .95 4.79 40
6/18/93 to
8/31/93 (.83) 2.99 51,487 1.19* 3.33* --
<FN>
* 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.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders.
</FN>
</TABLE>
<PAGE>
Photographic image of John Nuveen Sr., founder of Nuveen.
Serving Investors for Generations
Since our founding in 1898, John Nuveen & Co. Incorporated has been
synonymous with investments that withstand the test of time. Today, we
offer a broad range of investments designed for matured investors whose
portfolios are the principal source of their ongoing financial security.
More than 1.3 million investors have entrusted Nuveen to help them maintain
the lifestyle they currently enjoy.
A value investing approach--purchasing securities of strong companies and
communities that represent good long-term value--is the cornerstone of Nuveen's
investment philosophy. It is a careful, long-term strategy that offers the
potential for attractive returns with moderated risk. Successful value investing
begins with in-depth research and a discerning eye for marketplace opportunity.
Nuveen's team of investment professionals is backed by the discipline, resources
and expertise of almost a century of investment experience, including one of the
most recognized municipal research departments in the industry.
To meet the unique circumstances and financial planning needs of mature
investors, Nuveen offers a wide array of taxable and tax-free investment
products--including equity and fixed-income mutual funds, unit trusts,
exchange-traded funds, individual managed account services, and cash
management products.
John Nuveen & Co. Incorporated
333 West Wacker Drive
Chicago, Illinois 60606-1286
FSA-2-2.97
