N-CSRS 1 file001.txt NUVEEN INS CALIF PREMIUM INCOME MUNI FUND, INC. UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number 811-6620 --------------------- Nuveen Insured California Premium Income Municipal Fund, Inc. ------------------------------------------------------------------------------ (Exact name of registrant as specified in charter) Nuveen Investments 333 West Wacker Drive Chicago, IL 60606 ------------------------------------------------------------------------------ (Address of principal executive offices) (Zip code) Jessica R. Droeger Nuveen Investments 333 West Wacker Drive Chicago, IL 60606 ------------------------------------------------------------------------------ (Name and address of agent for service) Registrant's telephone number, including area code: (312) 917-7700 ------------------- Date of fiscal year end: August 31 ------------------ Date of reporting period: February 28, 2005 ------------------ Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles. A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. ss. 3507. ITEM 1. REPORTS TO STOCKHOLDERS. SEMIANNUAL REPORT February 28, 2005 Nuveen Investments Municipal Closed-End Exchange-Traded Funds NUVEEN INSURED CALIFORNIA PREMIUM INCOME MUNICIPAL FUND, INC. NPC NUVEEN INSURED CALIFORNIA PREMIUM INCOME MUNICIPAL FUND 2, INC. NCL NUVEEN CALIFORNIA PREMIUM INCOME MUNICIPAL FUND NCU NUVEEN CALIFORNIA DIVIDEND ADVANTAGE MUNICIPAL FUND NAC NUVEEN CALIFORNIA DIVIDEND ADVANTAGE MUNICIPAL FUND 2 NVX NUVEEN CALIFORNIA DIVIDEND ADVANTAGE MUNICIPAL FUND 3 NZH NUVEEN INSURED CALIFORNIA DIVIDEND ADVANTAGE MUNICIPAL FUND NKL NUVEEN INSURED CALIFORNIA TAX-FREE ADVANTAGE MUNICIPAL FUND NKX Photo of: Man, woman and child at the beach. Photo of: A child. DEPENDABLE, TAX-FREE INCOME BECAUSE IT'S NOT WHAT YOU EARN, IT'S WHAT YOU KEEP.(R) Logo: NUVEEN Investments Photo of: Woman Photo of: Man and child Photo of: Woman NOW YOU CAN RECEIVE YOUR NUVEEN FUND REPORTS FASTER. NO MORE WAITING. SIGN UP TODAY TO RECEIVE NUVEEN FUND INFORMATION BY E-MAIL. It only takes a minute to sign up for E-Reports. Once enrolled, you'll receive an e-mail as soon as your Nuveen Investments Fund information is ready -- no more waiting for delivery by regular mail. Just click on the link within the e-mail to see the report, and save it on your computer if you wish. ------------------ DELIVERY DIRECT TO YOUR E-MAIL INBOX ------------------ IT'S FAST, EASY & FREE: WWW.INVESTORDELIVERY.COM if you get your Nuveen Fund dividends and statements from your financial advisor or brokerage account. OR WWW.NUVEEN.COM/ACCOUNTACCESS if you get your Nuveen Fund dividends and statements directly from Nuveen. (Be sure to have the address sheet that accompanied this report handy. You'll need it to complete the enrollment process.) Logo: Nuveen Investments Timothy R. Schwertfeger Chairman of the Board Photo of: Timothy R. Schwertfeger Chairman's LETTER TO SHAREHOLDERS For all American taxpayers, the date of this chairman's letter carries special significance. Therefore, I am especially pleased on this day to report that over the six-month period covered by this semiannual report your Fund continued to provide you with monthly tax-free income and an attractive total return. For more details about the management strategy and performance of your Fund, please see the Portfolio Managers' Perspective and Performance Overview sections of this report. As I noted in my last letter to you, our conversations with financial advisers and investors suggest that many of you may be wondering whether long-term interest rates will soon begin to rise substantially, how high rates might eventually go, and whether that makes this a good time to adjust your holdings of fixed-income investments. We can't answer these questions for you - no one knows what the future will bring. "IN FACT, A WELL-DIVERSIFIED PORTFOLIO MAY ACTUALLY HELP TO REDUCE YOUR OVERALL INVESTMENT RISK." From our experience, we do know that a well-balanced portfolio, structured and carefully monitored with the help of a trusted investment professional, can be an important component in helping you achieve your long-term financial goals. In fact, a well-diversified portfolio may actually help to reduce your overall investment risk. That is one reason why we believe that a municipal bond investment like your Nuveen Fund can be an important building block in a comprehensive investment program designed to perform well in a variety of market conditions. As in past reports, I urge you to consider receiving future Fund reports and other Fund information by e-mail and the Internet. Not only will you be able to receive the information faster, but this also may help lower your Fund's expenses. Sign up is quick and easy - see the inside front cover of this report for instructions. Some of you may have heard that in April, 2005, The St. Paul Travelers Companies, Inc., which had owned 79% of Nuveen Investments, Inc. (the parent of your Fund's investment adviser) completed a public offering of a substantial portion of its equity stake in Nuveen. At the same time, St. Paul Travelers also entered into agreements to sell the balance of its shares in Nuveen to us or to others at a future date. These transactions will have no impact on the investment objectives or management of your Fund. However, taken as a whole they are considered to be an "assignment" of your Fund's investment management agreement. This means that you and your fellow Fund shareholders soon will be asked to formally approve the continuation of your Fund's management contract with Nuveen. We will be sending you more information about this process in the coming weeks. At Nuveen Investments, our mission continues to be to assist you and your financial advisor by offering investment services and products that can help you to secure your financial objectives. We are grateful that you have chosen us as a partner as you pursue your financial goals, and we look forward to continuing to earn your trust in the months and years ahead. Sincerely, /s/ Timothy R. Schwertfeger Timothy R. Schwertfeger Chairman of the Board April 15, 2005 Nuveen California Municipal Closed-End Exchange-Traded Funds (NPC, NCL, NCU, NAC, NVX, NZH, NKL, NKX) Portfolio Managers' COMMENTS Portfolio managers Dan Solender and Scott Romans review key investment strategies and the semiannual performance of these Funds. With thirteen years of investment experience, including nine at Nuveen, Dan assumed portfolio management responsibility for NPC and NCL in May 2004. Scott, who joined Nuveen in 2000, has managed NCU, NAC, NVX, NZH, NKL and NKX since January 2003. WHAT KEY STRATEGIES WERE USED TO MANAGE THESE CALIFORNIA FUNDS DURING THE SIX MONTHS ENDED FEBRUARY 28, 2005? Between September 2004 and February 2005, the Federal Reserve introduced four quarter-point increases in the fed funds rate, raising this short-term interest rate target from 1.5% to 2.5%. (On March 22, 2005, following the end of this reporting period, the Fed announced another 0.25% hike, taking the fed funds rate to 2.75%.) With the market anticipating increases in interest rates throughout the period, our focus centered on finding bonds that we believed could add immediate value to the Funds' portfolios and also had the potential to perform well under a variety of future market scenarios. Overall, our purchase activity for NCU, NAC, NVX, NZH, NKL and NKX emphasized finding premium bonds (those trading above their par value) in the intermediate and long-intermediate parts of the yield curve - that is, bonds that mature in 20 to 25 years. During the last two months of this period, we began to focus on bonds slightly further out on the yield curve. Generally speaking, our purchases of specific bonds during this period were influenced primarily by the bond's positioning on the yield curve, and secondarily on factors such as credit rating or industry sector, except when the need to maintain adequate diversification was an issue. For NPC and NCL, the funds investing exclusively in insured or guaranteed bonds, we focused our purchase activity during this period on the 15 to 20 year part of the yield curve. In particular, we looked for credits, especially from smaller issuers, that had high quality characteristics separate and apart from their insurance enhancement. This led to the purchase of a number of local school district and essential services bonds, which helped to diversify the holdings of these two Funds. 4 Some of these portfolio additions were financed with the proceeds from sales of pre-refunded bonds, bonds with short call dates, and bonds with shorter maturities. This was especially true in NPC, NCL and NCU. These holdings with short effective maturities tended to underperform in the interest rate environment of the past six months. Some of the proceeds from these sales were redeployed into bonds with maturities in targeted ranges of the yield curve, and that offered at least 10 years of call protection. In NKL and NKX, we also worked to improve the Funds' risk profiles by taking advantage of opportunities to selectively trim some of our more concentrated BBB and nonrated positions. Because lower-rated bonds generally performed well over the past year, demand for these bonds was strong. As a result, we were able to obtain attractive prices for the bonds we sold. In addition to reducing some of our concentrated credit positions, this approach enabled us to enhance the Funds' diversification as we reinvested the proceeds in new lower-rated and nonrated names when the market provided suitable opportunities. Among the additions to NCU's and NVX's portfolios during this period was a BBB+ credit issued for Daughters of Charity Health. Another strategy designed to help us reduce interest rate risk is hedging some of the Funds' interest rate exposure through the use of derivative financial instruments or in the form of interest rate swaps. During this period, we employed this strategy in NKL and NKX. It is important to note that we did not use the hedges in an attempt to profit from correctly predicting the timing and direction of interest rate movements. Instead, our sole objective was to reduce NKL's and NKX's durations (and therefore their price sensitivity to interest rate changes) without having a negative impact on their income streams or common share dividends over the short term. The cost of the hedge is reflected as an addition or subtraction to the Fund's net asset value (NAV) as the market value of the hedge fluctuates. The hedges did succeed in reducing the volatility of the Funds' NAVs over the course of this reporting period, and the hedges had positive market values as of February 28, 2005. 5 HOW DID THE FUNDS PERFORM OVER THE SIX MONTH PERIOD? Individual results for the Nuveen California Funds, as well as for comparative indexes, are presented in the accompanying table. TOTAL RETURNS ON NET ASSET VALUE* For periods ended 2/28/05 (Annualized) NONINSURED CA FUNDS 6-MONTH 1-YEAR 5-YEAR 10-YEAR -------------------------------------------------------------------------------- NCU 5.14% 5.89% 9.99% 8.18% -------------------------------------------------------------------------------- NAC 4.74% 5.27% 11.85% NA -------------------------------------------------------------------------------- NVX 5.38% 5.67% NA NA -------------------------------------------------------------------------------- NZH 5.12% 5.46% NA NA -------------------------------------------------------------------------------- Lehman Brothers CA Tax-Exempt Bond Index1 2.97% 4.01% 7.21% 6.65% -------------------------------------------------------------------------------- Lipper CA Municipal Debt Funds Average2 2.76% 5.56% 6.53% 5.81% -------------------------------------------------------------------------------- INSURED CA FUNDS -------------------------------------------------------------------------------- NPC 2.82% 2.99% 9.26% 7.38% -------------------------------------------------------------------------------- NCL 3.45% 3.05% 9.20% 7.64% -------------------------------------------------------------------------------- NKL 4.79% 4.60% NA NA -------------------------------------------------------------------------------- NKX 5.15% 4.86% NA NA -------------------------------------------------------------------------------- Lehman Brothers Insured CA Tax-Exempt Bond Index1 2.64% 3.04% 7.40% 6.74% -------------------------------------------------------------------------------- Lipper Insured CA Municipal Debt Funds Average2 2.59% 3.74% 6.44% 5.66% -------------------------------------------------------------------------------- *Six-month returns are cumulative; returns for one year, five years, and ten years are annualized. Past performance is not predictive of future results. Current performance may be higher or lower then the data shown. Returns do not reflect the deduction of taxes that shareholders may have to pay on Fund distributions or upon the sale of Fund shares. For additional information, see the individual Performance Overview for your Fund in this report. 1 The Lehman Brothers California Tax-Exempt Bond Index is an unleveraged, unmanaged index comprising a broad range of investment-grade California municipal bonds. The Lehman Brothers Insured California Tax-Exempt Bond Index is an unleveraged, unmanaged index containing a broad range of insured California municipal bonds. Results for the Lehman indexes do not reflect any expenses. 2 The Lipper California Municipal Debt Funds average is calculated using the returns of all leveraged and unleveraged closed-end exchange-traded funds in this category for each period as follows: 6 months, 30 funds; 1 year, 30 funds; 5 years, 19 funds; and 10 years, 17 funds. The Lipper Insured California Municipal Debt Funds average is calculated using the returns of all closed-end exchange-traded funds in its category for each period as follows: 6 months, 13 funds; 1 year, 13 funds; 5 years, 7 funds; and 10 years, 6 funds. Fund and Lipper returns assume reinvestment of dividends. 6 For the six months ended February 28, 2005, the cumulative returns on NAV for the four noninsured California Funds outperformed the return on the Lehman Brothers California Tax-Exempt Bond Index, while the four insured Funds outperformed the Lehman Brothers Insured California Bond index. Each of the Funds also performed better than the average returns for their respective Lipper California Fund peer groups. One of the primary factors benefiting the six-month performances of all these Funds relative to that of the unleveraged Lehman Brothers indexes was the Funds' use of financial leverage. While leveraging can add volatility to the Funds' NAVs and share prices, especially during periods when interest rates rise, this strategy can also provide opportunities for additional income and total returns for common shareholders when short-term interest rates remain relatively low and long-term rates fall or remain fairly constant, as they did during this reporting period. Although short-term rates remained historically low over this period, they did rise in response to increases in the fed funds rate. At the same time, longer-term yields fell by 20 basis points between the end of August 2004 and the end of February 2005, as measured by the Bond Buyer 25, a widely followed municipal bond index. As a result, bonds with longer maturities generally tended to perform better than securities with shorter maturities. This benefited NVX and NZH, which were introduced in 2001, and NKL and NKX, which were introduced in 2002, since these Funds had less exposure to the shorter end of the yield curve than the four older Funds. This accounts for much of the relative performance differences between these Funds over the six-month reporting period. 7 In addition, NCU, NAC, NVX and NZH (the noninsured Funds) as well as NKL and NKX (which predominantly hold insured bonds but can invest up to 20% of their portfolios in uninsured bonds) benefited from their allocations of lower quality issues during this period. BBB and nonrated bonds generally outperformed other credit quality sectors as the economy improved. In particular, the Funds' returns were helped by our selection of individual nonrated credits, which tended to outperform the nonrated segment of the market as a whole. Among the lower-rated credits producing the strongest total returns were bonds backed by the 1998 master tobacco settlement agreement, as the litigation environment improved and the supply/demand situation drove tobacco bond prices higher. As of February 28, 2005, all six of these Funds held positions in tobacco bonds, with NCU, NVX and NZH allocating approximately 4% of their portfolios to these bonds, while NAC allocated 2.8%, and NKL and NKX allocated about 1.5% and 1.3%, respectively. Our sector allocation decisions also made positive contributions to the Funds' cumulative six-month returns. In NCU, NAC, NVX, NZH, NKL and NKX especially, our holdings in healthcare were beneficial, as this sector ranked second in terms of performance among the Lehman municipal revenue sectors for the period. One area of the municipal market that tended to underperform during this period was the pre-refunded sector, due primarily to these bonds' shorter effective maturities. As of February 28, 2005, NPC had a considerably larger exposure to pre-refunded bonds than any of the other Funds, and this served as a constraint on NPC's performance during this period. 8 HOW WERE THE FUNDS POSITIONED IN TERMS OF CREDIT QUALITY AND BOND CALLS AS OF FEBRUARY 28, 2005? We continued to believe that, given the current geopolitical and economic climate, maintaining strong credit quality was an important requirement. As of February 28, 2005, the four noninsured Funds continued to offer excellent credit quality, with allocations of bonds rated AAA/U.S. guaranteed and AA ranging from 62% in NAC to 65% in NZH, 67% in NCU, and 70% in NVX. NPC and NCL continued to be 100% invested in insured and/or U.S. guaranteed securities, while NKL and NKX, which can invest up to 20% of their assets in uninsured investment-grade quality securities, had allocated 80% and 82% of their portfolios, respectively, to insured bonds as of February 28, 2005. As of February 28, 2005, potential call exposure for the period March 2005 through the end of 2006 ranged from zero in NKL to 2% in NZH, 3% in NAC, 4% in NVX and NKX, 10% in NPC, 12% in NCU and 15% in NCL. The number of actual bond calls in all of these Funds depends largely on future market interest rates. 9 Dividend and Share Price INFORMATION As short-term interest rates remained relatively low throughout this reporting period, the leveraged structures of these eight Funds continued to support their dividend-paying capabilities. The extent of this benefit is tied in part to the short-term rates these Funds pay their MuniPreferred(R) shareholders. During periods of low short-term rates, leveraged Funds generally pay lower dividends to their MuniPreferred shareholders, which can leave more earnings to support common share dividends. This strategy helped to maintain the dividends of NPC, NCL, NCU, NAC, NVX, NZH and NKL throughout the reporting period. However, the rise in short-term interest rates during this period, and the resulting increase in borrowing costs, was enough to offset some of the leverage advantage in NKX, which was initially invested during the low rate environment of 2002 and has not had the same opportunity as the other Funds to build reserves. As a result, NKX's dividend was reduced in December 2004. In addition, due to capital gains generated by normal portfolio activity, common shareholders received capital gains and net ordinary income distributions at the end of December 2004 as follows: LONG-TERM CAPITAL GAINS ORDINARY INCOME (PER SHARE) (PER SHARE) -------------------------------------------------------------------------------- NPC $0.1157 $0.0557 -------------------------------------------------------------------------------- NAC $0.0464 $ -- -------------------------------------------------------------------------------- NKL $0.0426 $0.0072 -------------------------------------------------------------------------------- 10 All of these Funds seek to pay stable dividends at rates that reflect each Fund's past results and projected future performance. During certain periods, each Fund may pay dividends at a rate that may be more or less than the amount of net investment income actually earned by the Fund during the period. If a Fund has cumulatively earned more than it has paid in dividends, it holds the excess in reserve as undistributed net investment income (UNII) as part of the Fund's NAV. Conversely, if a Fund has cumulatively paid dividends in excess of its earnings, the excess constitutes negative UNII that is likewise reflected in the Fund's NAV. Each Fund will, over time, pay all of its net investment income as dividends to shareholders. As of February 28, 2005, all of the Funds in this report, with the exception of NKX, had positive UNII balances for both financial statement and tax purposes. As of February 28, 2005, NKX had a positive UNII balance for tax purposes and a negative UNII balance for financial statement purposes. At the end of the reporting period, the Funds' share prices were trading at premiums or discounts to their NAVs as shown in the accompanying chart: 2/28/05 6-MONTH AVERAGE PREMIUM/DISCOUNT PREMIUM/DISCOUNT -------------------------------------------------------------------------------- NPC 2.55% -2.44% -------------------------------------------------------------------------------- NCL -1.25% -0.41% -------------------------------------------------------------------------------- NCU -4.12% -6.87% -------------------------------------------------------------------------------- NAC -4.88% -4.90% -------------------------------------------------------------------------------- NVX -7.97% -8.36% -------------------------------------------------------------------------------- NZH -8.76% -9.76% -------------------------------------------------------------------------------- NKL -6.17% -5.82% -------------------------------------------------------------------------------- NKX -1.21% -2.71% -------------------------------------------------------------------------------- 11 Nuveen Insured California Premium Income Municipal Fund, Inc. NPC Performance OVERVIEW As of February 28, 2005 Pie Chart: CREDIT QUALITY (as a % of total investments) Insured 78% U.S. Guaranteed 22% Bar Chart: 2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE2 Mar 0.077 Apr 0.077 May 0.077 Jun 0.077 Jul 0.077 Aug 0.077 Sep 0.077 Oct 0.077 Nov 0.077 Dec 0.077 Jan 0.077 Feb 0.077 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 3/1/04 16.23 16.22 16.35 16.28 16.41 16.4 16.46 16.45 16.43 16.27 16.24 16.28 16.37 16.45 16.34 16.45 16.44 16.64 16.83 16.65 16.65 16.49 16.51 16.52 16.43 16.08 16.05 15.67 15.62 15.28 15 14.84 14.7 14.79 14.75 14.53 14.52 14.53 14.35 14.2 14.15 14.08 14.06 14.14 14.26 14.26 14.05 14.07 13.77 13.26 13.53 13.56 13.8 13.8 14 14.05 14.08 14.2 14.15 14.3 14.28 14.3 14.35 14.29 14.29 14.37 14.31 14.36 14.31 14.28 14.24 14.16 14.21 13.95 14 13.89 13.87 13.76 13.77 13.77 13.78 13.83 13.89 13.83 13.78 13.92 14.25 14.38 14.36 14.51 14.72 14.66 14.68 14.51 14.55 14.64 14.61 14.6 14.55 14.48 14.45 14.45 14.45 14.47 14.47 14.81 14.88 14.88 14.93 14.99 14.88 15.18 15.27 15.11 15.4 15.3 15.07 15.07 15.01 15.36 15.1 15.5 15.39 15.35 15.37 15.37 15.43 15.49 15.74 15.81 15.96 15.91 15.68 15.7 15.68 15.63 15.65 15.94 15.88 15.8 15.8 15.89 15.84 15.76 15.95 15.94 15.78 15.95 15.95 15.99 16.01 15.93 15.84 15.88 15.88 15.75 15.89 16.1 16.1 15.82 15.85 15.68 15.64 15.62 15.69 15.73 15.72 15.75 15.73 15.71 15.69 15.69 15.69 15.6 15.8 15.74 15.75 15.62 15.46 15.48 15.25 15.1 15.19 15.3 15.29 15.3 15.31 15.44 15.4 15.44 15.54 15.53 15.42 15.33 15.23 15.16 15.24 15.33 15.36 15.49 15.43 15.65 15.25 15.18 15.2 15.26 15.82 15.8 15.85 15.44 15.44 15.49 15.7 15.8 15.99 16.06 16.1 16.05 16.25 16.38 16.41 16.15 16.27 16.27 16.23 16.23 16.19 16.21 16.17 16.22 16.24 16.27 16.39 16.28 16.28 16.57 16.56 16.3 16.41 16.45 16.43 16.5 16.57 16.56 16.45 16.45 16.57 16.49 16.49 16.4 16.54 16.47 16.57 16.58 2/28/05 16.46 FUND SNAPSHOT ------------------------------------ Share Price $16.46 ------------------------------------ Common Share Net Asset Value $16.05 ------------------------------------ Premium/(Discount) to NAV 2.55% ------------------------------------ Market Yield 5.61% ------------------------------------ Taxable-Equivalent Yield1 8.56% ------------------------------------ Net Assets Applicable to Common Shares ($000) $103,478 ------------------------------------ Average Effective Maturity on Securities (Years) 17.32 ------------------------------------ Leverage-Adjusted Duration 8.09 ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 11/19/92) ------------------------------------ ON SHARE PRICE ON NAV ------------------------------------ 6-Month (Cumulative) 8.27% 2.82% ------------------------------------ 1-Year 8.83% 2.99% ------------------------------------ 5-Year 10.71% 9.26% ------------------------------------ 10-Year 8.87% 7.38% ------------------------------------ SECTORS (as a % of total investments) ------------------------------------ Tax Obligation/General 29.0% ------------------------------------ U.S. Guaranteed 21.6% ------------------------------------ Water and Sewer 16.1% ------------------------------------ Tax Obligation/Limited 15.7% ------------------------------------ Education and Civic Organizations 6.2% ------------------------------------ Utilities 5.5% ------------------------------------ Other 5.9% ------------------------------------ 1 Taxable-equivalent yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 34.5%. For investments that generate qualified dividend income, the taxable-equivalent yield is lower. 2 The Fund also paid shareholders capital gains and net ordinary income distributions in December 2004 of $0.1714 per share. 12 Nuveen Insured California Premium Income Municipal Fund 2, Inc. NCL Performance OVERVIEW As of February 28, 2005 Pie Chart: CREDIT QUALITY (as a % of total investments) Insured 91% U.S. Guaranteed 9% Bar Chart: 2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE Mar 0.076 Apr 0.076 May 0.076 Jun 0.076 Jul 0.076 Aug 0.076 Sep 0.076 Oct 0.076 Nov 0.076 Dec 0.076 Jan 0.076 Feb 0.076 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 3/1/04 15.67 15.7 15.63 15.64 15.73 15.76 15.76 15.78 15.8 15.63 15.63 15.65 15.74 15.75 15.66 15.7 15.71 15.78 15.91 15.85 15.85 15.85 15.85 15.87 15.7 15.31 14.9 14.8 14.88 14.7 14.47 14.2 14.08 14.1 14.05 13.71 13.76 13.83 13.55 13.43 13.4 13.32 13.32 13.37 13.35 13.38 13.48 13.46 13.16 13.12 13.14 13.14 13.06 13.23 13.25 13.29 13.38 13.42 13.42 13.6 13.72 13.82 13.83 13.97 13.97 13.86 13.92 13.94 13.85 13.8 13.82 13.74 13.77 13.44 13.35 13.27 13.2 13.16 13.2 13.22 13.22 13.25 13.21 13.22 13.23 13.3 13.46 13.65 13.63 13.79 13.8 13.88 14.07 13.91 13.91 13.91 14.11 14.05 13.91 13.81 13.9 13.86 13.99 14 13.95 14.05 14.24 14.24 14.29 14.28 14.43 14.47 14.52 14.6 14.68 14.65 14.79 14.7 14.57 14.76 15.05 14.85 14.9 14.91 14.75 14.9 15.01 15.08 15.06 15.18 15.15 15.12 15.15 15.05 15.15 15.1 15.11 15.14 15.15 15.1 15.11 15.15 15.17 15.22 15.23 15.28 15.3 15.3 15.33 15.37 15.35 15.36 15.45 15.33 15.29 15.26 15.35 15.38 15.42 15.28 15.27 15.27 15.3 15.26 15.29 15.3 15.3 15.3 15.26 15.35 15.41 15.3 15.3 15.4 15.5 15.5 15.5 15.4 15.35 15.25 15.25 15.29 15.3 15.3 15.33 15.25 15.24 15.34 15.5 15.34 15.31 15.35 15.38 15.45 15.41 15.27 15.3 15.31 15.32 15.52 15.44 15.49 15.47 15.52 15.61 15.53 15.37 15.29 15.27 15.14 15.1 15 14.94 15.05 15.17 15.25 15.27 15.3 15.24 15.44 15.39 14.95 15.03 14.91 14.9 14.72 14.68 14.69 14.74 14.69 14.57 14.55 14.62 14.67 14.77 14.92 14.93 14.92 14.97 15.06 15.09 15 15.02 15.04 14.97 15.01 14.98 15.01 14.97 14.91 14.7 14.7 14.84 14.89 2/28/05 14.99 FUND SNAPSHOT ------------------------------------ Share Price $14.99 ------------------------------------ Common Share Net Asset Value $15.18 ------------------------------------ Premium/(Discount) to NAV -1.25% ------------------------------------ Market Yield 6.08% ------------------------------------ Taxable-Equivalent Yield1 9.28% ------------------------------------ Net Assets Applicable to Common Shares ($000) $192,936 ------------------------------------ Average Effective Maturity on Securities (Years) 18.07 ------------------------------------ Leverage-Adjusted Duration 7.70 ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 3/18/93) ------------------------------------ ON SHARE PRICE ON NAV ------------------------------------ 6-Month (Cumulative) 1.75% 3.45% ------------------------------------ 1-Year 2.52% 3.05% ------------------------------------ 5-Year 9.94% 9.20% ------------------------------------ 10-Year 8.33% 7.64% ------------------------------------ SECTORS (as a % of total investments) ------------------------------------ Tax Obligation/Limited 31.9% ------------------------------------ Tax Obligation/General 17.8% ------------------------------------ Water and Sewer 17.3% ------------------------------------ U.S. Guaranteed 9.1% ------------------------------------ Utilities 8.2% ------------------------------------ Education and Civic Organizations 7.8% ------------------------------------ Other 7.9% ------------------------------------ 1 Taxable-equivalent yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 34.5%. For investments that generate qualified dividend income, the taxable-equivalent yield is lower. 13 Nuveen California Premium Income Municipal Fund NCU Performance OVERVIEW As of February 28, 2005 Pie Chart: CREDIT QUALITY (as a % of total investments) AAA/U.S. Guaranteed 60% AA 7% A 14% BBB 13% BB or Lower 5% NR 1% Bar Chart: 2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE Mar 0.073 Apr 0.073 May 0.073 Jun 0.073 Jul 0.073 Aug 0.073 Sep 0.073 Oct 0.073 Nov 0.073 Dec 0.073 Jan 0.073 Feb 0.073 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 3/1/04 13.89 13.9 13.93 13.9 14.03 14.01 14 14.07 14.04 14.1 14.12 14.15 14.11 14.11 14.11 14.12 14.1 14.07 14.08 14.02 14.01 14.02 14.02 14.07 14.07 13.95 13.71 13.6 13.6 13.6 13.13 12.92 12.87 12.92 13.05 13.22 13.19 13.09 12.87 12.8 12.74 12.63 12.74 12.75 12.97 12.78 12.78 12.65 12.37 12.51 12.4 12.24 11.95 12.17 12.01 12.05 11.98 12.19 12.18 12.24 12.45 12.79 12.93 12.99 12.99 12.65 12.62 12.84 12.65 12.66 12.85 12.6 12.51 12.32 12.45 12.46 12.34 12.6 12.54 12.5 12.5 12.54 12.52 12.54 12.56 12.62 12.59 12.8 12.8 12.75 12.8 12.81 12.87 12.75 12.77 12.71 12.8 12.8 12.79 12.79 12.79 12.84 12.89 12.9 12.95 13.02 13.14 13.14 13.26 13.25 13.25 13.13 13.18 13.15 13.14 13.19 13.18 13.23 13.25 13.34 13.33 13.28 13.36 13.27 13.5 13.28 13.48 13.67 13.85 13.67 13.7 13.67 13.55 13.6 13.7 13.53 13.62 13.7 13.81 13.73 13.88 13.93 13.85 13.94 13.95 13.95 13.9 13.95 14.22 14.1 14 13.82 13.75 13.88 13.85 13.8 13.85 13.99 14 14.02 13.92 14.05 14 13.94 13.94 14.01 14.1 13.95 13.85 13.9 13.91 13.9 13.9 13.9 13.92 13.91 13.84 13.55 13.34 13.36 13.3 13.38 13.42 13.5 13.6 13.65 13.6 13.55 13.6 13.5 13.6 13.65 13.65 13.7 13.59 13.51 13.52 13.61 13.56 13.5 13.63 13.73 13.58 13.5 13.54 13.42 13.31 13.3 13.279 13.32 13.31 13.27 13.1 13.18 13.14 13.18 13.22 13.33 13.38 13.44 13.42 13.49 13.5 13.4 13.43 13.54 13.53 13.53 13.48 13.71 14.25 14.13 14.18 13.9 14.03 14.02 13.83 13.78 13.75 13.83 14.1 14.05 14.06 14.03 13.93 14.3 14.3 14.17 14 13.96 14 14.35 14.15 14.21 2/28/05 14.2 FUND SNAPSHOT ------------------------------------ Share Price $14.20 ------------------------------------ Common Share Net Asset Value $14.81 ------------------------------------ Premium/(Discount) to NAV -4.12% ------------------------------------ Market Yield 6.17% ------------------------------------ Taxable-Equivalent Yield1 9.42% ------------------------------------ Net Assets Applicable to Common Shares ($000) $85,499 ------------------------------------ Average Effective Maturity on Securities (Years) 17.15 ------------------------------------ Leverage-Adjusted Duration 9.69 ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 6/18/93) ------------------------------------ ON SHARE PRICE ON NAV ------------------------------------ 6-Month (Cumulative) 7.20% 5.14% ------------------------------------ 1-Year 9.19% 5.89% ------------------------------------ 5-Year 9.11% 9.99% ------------------------------------ 10-Year 8.56% 8.18% ------------------------------------ SECTORS (as a % of total investments) ------------------------------------ Tax Obligation/Limited 31.0% ------------------------------------ Tax Obligation/General 18.2% ------------------------------------ Healthcare 14.7% ------------------------------------ Water and Sewer 11.5% ------------------------------------ Utilities 7.6% ------------------------------------ Transportation 5.6% ------------------------------------ U.S. Guaranteed 4.2% ------------------------------------ Other 7.2% ------------------------------------ 1 Taxable-equivalent yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 34.5%. For investments that generate qualified dividend income, the taxable-equivalent yield is lower. 14 Nuveen California Dividend Advantage Municipal Fund NAC Performance OVERVIEW As of February 28, 2005 Pie Chart: CREDIT QUALITY (as a % of total investments) AAA/U.S. Guaranteed 54% AA 8% A 15% BBB 14% NR 9% Bar Chart: 2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE2 Mar 0.082 Apr 0.082 May 0.082 Jun 0.082 Jul 0.082 Aug 0.082 Sep 0.082 Oct 0.082 Nov 0.082 Dec 0.082 Jan 0.082 Feb 0.082 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 3/1/04 15.26 15.32 15.28 15.3 15.45 15.45 15.62 15.65 15.66 15.63 15.55 15.45 15.52 15.58 15.62 15.56 15.55 15.57 15.53 15.42 15.4 15.38 15.49 15.5 15.3 15.15 14.92 14.93 14.92 14.77 14.52 14.4 14.18 14.38 14.4 14.35 14.24 14.26 14.23 14.08 14 14 13.95 14.13 14 13.9 13.82 13.8 13.55 13.3 13.46 13.26 13.12 13.22 13.25 13.18 13.19 13.43 13.53 13.55 13.6 13.8 13.95 14.16 14.16 14.11 14.08 14.02 14.08 14.13 14.11 14.02 13.97 13.94 14 14.05 13.97 13.93 13.99 14.07 13.9 14 13.91 13.93 13.97 13.98 14.08 14.23 14.22 14.12 14.17 14.2 14.22 14.19 14.21 14.18 14.25 14.24 14.22 14.2 14.1 14.09 14.08 14.06 14.15 14.27 14.35 14.35 14.45 14.59 14.61 14.54 14.61 14.67 14.65 14.68 14.65 14.65 14.64 14.66 14.71 14.75 14.84 14.79 14.7 14.79 14.8 14.87 14.87 15 15.06 14.98 14.92 15.02 15.09 15 15.14 15.02 14.96 14.94 14.95 14.98 14.99 14.97 15.04 15.04 15.04 15 15 15.04 14.96 14.81 14.85 14.91 14.9 14.9 14.99 15.05 15.05 15 15.01 15.05 15.12 15.18 15.24 15.19 15.27 15.28 15.27 15.31 15.27 15.32 15.32 15.47 15.4 15.5 15.48 15.23 14.89 15.04 14.96 15.12 15.14 15.14 15.17 15.18 15.28 15.05 15.11 15.09 15 14.98 14.9 14.76 14.75 14.7 14.81 14.82 14.81 14.89 14.83 14.83 14.83 14.86 14.9 14.86 14.95 14.93 14.85 14.84 14.83 14.76 14.9 14.84 14.89 14.9 14.9 14.82 14.75 14.81 14.88 14.76 14.75 14.57 14.46 14.4 14.5 14.53 14.59 14.57 14.53 14.61 14.52 14.61 14.69 14.74 14.8 14.89 14.98 15.07 15.19 15.15 15.23 15.21 15.11 15.2 15.04 14.98 15 14.83 14.79 14.82 14.9 15.06 2/28/05 15.01 FUND SNAPSHOT ------------------------------------ Share Price $15.01 ------------------------------------ Common Share Net Asset Value $15.78 ------------------------------------ Premium/(Discount) to NAV -4.88% ------------------------------------ Market Yield 6.56% ------------------------------------ Taxable-Equivalent Yield1 10.02% ------------------------------------ Net Assets Applicable to Common Shares ($000) $369,416 ------------------------------------ Average Effective Maturity on Securities (Years) 18.78 ------------------------------------ Leverage-Adjusted Duration 7.87 ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 5/26/99) ------------------------------------ ON SHARE PRICE ON NAV ------------------------------------ 6-Month (Cumulative) 3.71% 4.74% ------------------------------------ 1-Year 5.52% 5.27% ------------------------------------ 5-Year 10.18% 11.85% ------------------------------------ Since Inception 6.46% 8.06% ------------------------------------ SECTORS (as a % of total investments) ------------------------------------ Tax Obligation/Limited 27.4% ------------------------------------ Tax Obligation/General 15.3% ------------------------------------ Transportation 13.6% ------------------------------------ Utilities 7.9% ------------------------------------ Healthcare 7.8% ------------------------------------ Water and Sewer 7.7% ------------------------------------ Education and Civic Organizations 7.1% ------------------------------------ Housing/Multifamily 4.9% ------------------------------------ Other 8.3% ------------------------------------ 1 Taxable-equivalent yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 34.5%. For investments that generate qualified dividend income, the taxable-equivalent yield is lower. 2 The Fund also paid shareholders a capital gains distribution in December 2004 of $0.0464 per share. 15 Nuveen California Dividend Advantage Municipal Fund 2 NVX Performance OVERVIEW As of February 28, 2005 Pie Chart: CREDIT QUALITY (as a % of total investments) AAA/U.S. Guaranteed 69% AA 1% A 12% BBB 12% NR 6% Bar Chart: 2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE Mar 0.076 Apr 0.076 May 0.076 Jun 0.076 Jul 0.076 Aug 0.076 Sep 0.076 Oct 0.076 Nov 0.076 Dec 0.076 Jan 0.076 Feb 0.076 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 3/1/04 14.29 14.38 14.27 14.3 14.35 14.56 14.57 14.75 14.54 14.52 14.6 14.56 14.56 14.55 14.53 14.66 14.52 14.6 14.52 14.49 14.35 14.35 14.36 14.36 14.19 13.97 13.87 14 13.95 13.75 13.4 13.57 13.29 13.35 13.4 13.26 13.06 13.1 13.06 12.98 12.97 12.89 12.92 12.92 12.89 12.76 12.8 12.74 12.61 12.34 12.49 12.39 12.25 12.41 12.25 12.46 12.59 12.64 12.75 12.69 12.81 12.9 13.08 13.05 13.05 13.07 13.05 13.1 13.09 12.98 13.05 13.05 12.99 12.92 13.1 12.84 12.89 12.96 12.99 13.09 13 13.06 13.14 13.1 13.1 13.05 13.09 13.42 13.33 13.3 13.3 13.35 13.4 13.38 13.28 13.22 13.37 13.45 13.25 13.25 13.24 13.3 13.33 13.31 13.38 13.37 13.4 13.4 13.46 13.52 13.56 13.59 13.68 13.9 13.69 13.6 13.57 13.65 13.65 13.63 13.7 13.65 13.88 13.77 13.9 13.98 13.99 13.93 14.03 14.08 14.15 14.12 14 14 14.09 14.13 14.2 14.01 13.98 13.97 13.95 14.02 14 14.01 13.99 14.14 14.03 14.11 14.17 14.08 14.05 13.95 13.95 13.95 13.9 13.9 14.04 14.09 14.03 14.04 14.04 14.05 14.04 14.12 14.11 14.13 14.16 14.19 14.16 14.06 14.04 14.08 14.08 14.11 14.18 14.25 14.22 14.04 13.65 13.7 13.65 13.74 13.76 14.03 14.06 14.1 14.04 13.96 14.08 13.94 13.96 13.99 13.87 13.72 13.66 13.62 13.68 13.76 13.76 13.79 13.73 13.84 13.69 13.69 13.7 13.6 13.72 13.54 13.55 13.66 13.57 13.44 13.41 13.45 13.46 13.45 13.58 13.62 13.61 13.62 13.67 13.7 13.74 13.63 13.66 13.65 13.8 13.71 13.77 13.8 13.83 13.95 13.96 13.917 14.05 14.13 14.1 14.1 14.18 14.17 14.24 14.24 14.35 14.3 14.35 14.15 14.17 14.21 14.11 13.99 13.9 14.01 14 14.12 2/28/05 14.09 FUND SNAPSHOT ------------------------------------ Share Price $14.09 ------------------------------------ Common Share Net Asset Value $15.31 ------------------------------------ Premium/(Discount) to NAV -7.97% ------------------------------------ Market Yield 6.47% ------------------------------------ Taxable-Equivalent Yield1 9.88% ------------------------------------ Net Assets Applicable to Common Shares ($000) $226,385 ------------------------------------ Average Effective Maturity on Securities (Years) 17.81 ------------------------------------ Leverage-Adjusted Duration 8.93 ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 3/27/01) ------------------------------------ ON SHARE PRICE ON NAV ------------------------------------ 6-Month (Cumulative) 3.38% 5.38% ------------------------------------ 1-Year 5.13% 5.67% ------------------------------------ Since Inception 4.74% 7.92% ------------------------------------ SECTORS (as a % of total investments) ------------------------------------ Tax Obligation/Limited 30.1% ------------------------------------ Tax Obligation/General 19.8% ------------------------------------ Education and Civic Organizations 10.2% ------------------------------------ Water and Sewer 9.3% ------------------------------------ Transportation 6.1% ------------------------------------ Utilities 6.0% ------------------------------------ Healthcare 5.8% ------------------------------------ Housing/Multifamily 5.0% ------------------------------------ Other 7.7% ------------------------------------ 1 Taxable-equivalent yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 34.5%. For investments that generate qualified dividend income, the taxable-equivalent yield is lower. 16 Nuveen California Dividend Advantage Municipal Fund 3 NZH Performance OVERVIEW As of February 28, 2005 Pie Chart: CREDIT QUALITY (as a % of total investments) AAA/U.S. Guaranteed 61% AA 4% A 15% BBB 13% NR 7% Bar Chart: 2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE Mar 0.076 Apr 0.076 May 0.076 Jun 0.076 Jul 0.076 Aug 0.076 Sep 0.076 Oct 0.076 Nov 0.076 Dec 0.076 Jan 0.076 Feb 0.076 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 3/1/04 13.68 13.69 13.74 13.71 13.77 13.84 13.9 13.95 13.92 13.9 13.97 13.95 13.97 13.88 13.87 13.95 13.96 14.01 13.92 13.93 13.79 13.75 13.78 13.82 13.58 13.29 13.25 13.35 13.26 13.19 13 12.9 12.77 12.86 12.77 12.79 12.71 12.63 12.51 12.49 12.52 12.53 12.43 12.53 12.43 12.49 12.41 12.29 12.09 11.95 12.07 11.98 11.88 12.04 11.97 12.05 12.11 12.18 12.25 12.38 12.41 12.49 12.56 12.44 12.44 12.47 12.41 12.42 12.33 12.34 12.41 12.41 12.3 12.51 12.51 12.46 12.3 12.26 12.32 12.27 12.27 12.35 12.46 12.36 12.41 12.38 12.55 12.65 12.62 12.64 12.66 12.65 12.76 12.67 12.66 12.57 12.66 12.7 12.61 12.62 12.67 12.69 12.7 12.66 12.68 12.69 12.77 12.77 12.87 12.9 12.87 12.95 13.07 13.05 13.06 12.96 12.91 13.01 13.02 13.06 13.1 13.14 13.16 13.15 13.15 13.17 13.22 13.27 13.31 13.33 13.4 13.35 13.34 13.34 13.35 13.25 13.35 13.25 13.25 13.27 13.4 13.4 13.48 13.51 13.45 13.55 13.5 13.5 13.5 13.51 13.42 13.4 13.43 13.46 13.4 13.47 13.51 13.54 13.44 13.37 13.42 13.46 13.43 13.41 13.5 13.5 13.48 13.55 13.58 13.51 13.59 13.68 13.68 13.75 13.83 13.74 13.78 13.47 13.3 13.33 13.26 13.31 13.36 13.35 13.35 13.42 13.44 13.44 13.34 13.27 13.26 13.25 13.2 13.21 13.15 13.04 13.18 13.23 13.25 13.35 13.23 13.34 13.19 13.19 13.27 13.15 13.17 13.15 13.12 13.1 13.09 13.02 13.05 13.05 13.14 13.14 13.18 13.15 13.17 13.23 13.32 13.36 13.42 13.34 13.35 13.31 13.37 13.42 13.4 13.5 13.5 13.46 13.62 13.65 13.7 13.74 13.78 13.8 13.8 13.76 13.89 13.88 13.84 13.87 13.79 13.8 13.79 13.72 13.67 13.5 13.45 13.5 13.53 13.63 2/28/05 13.65 FUND SNAPSHOT ------------------------------------ Share Price $13.65 ------------------------------------ Common Share Net Asset Value $14.96 ------------------------------------ Premium/(Discount) to NAV -8.76% ------------------------------------ Market Yield 6.33% ------------------------------------ Taxable-Equivalent Yield1 9.66% ------------------------------------ Net Assets Applicable to Common Shares ($000) $360,724 ------------------------------------ Average Effective Maturity on Securities (Years) 17.86 ------------------------------------ Leverage-Adjusted Duration 9.37 ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 9/25/01) ------------------------------------ ON SHARE PRICE ON NAV ------------------------------------ 6-Month (Cumulative) 5.73% 5.12% ------------------------------------ 1-Year 6.36% 5.46% ------------------------------------ Since Inception 3.54% 7.37% ------------------------------------ SECTORS (as a % of total investments) ------------------------------------ Tax Obligation/Limited 29.7% ------------------------------------ Tax Obligation/General 20.6% ------------------------------------ Water and Sewer 9.2% ------------------------------------ Utilities 8.7% ------------------------------------ Healthcare 8.3% ------------------------------------ Transportation 6.2% ------------------------------------ Housing/Multifamily 5.8% ------------------------------------ Education and Civic Organizations 5.1% ------------------------------------ Other 6.4% ------------------------------------ 1 Taxable-equivalent yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 34.5%. For investments that generate qualified dividend income, the taxable-equivalent yield is lower. 17 Nuveen Insured California Dividend Advantage Municipal Fund NKL Performance OVERVIEW As of February 28, 2005 Pie Chart: CREDIT QUALITY (as a % of total investments) Insured 80% AAA (Uninsured) 1% AA (Uninsured) 3% A (Uninsured) 10% BBB (Uninsured) 6% Bar Chart: 2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE2 Mar 0.076 Apr 0.076 May 0.076 Jun 0.076 Jul 0.076 Aug 0.076 Sep 0.076 Oct 0.076 Nov 0.076 Dec 0.076 Jan 0.076 Feb 0.076 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 3/1/04 15.15 15.16 15.1 15.3 15.25 15.3 15.31 15.25 15.1 15.1 15.15 15.25 15.2 15.2 15.11 15.18 15.17 15.19 15.11 15.25 15.18 15.3 15.28 15.19 15 14.72 14.5 14.41 14.42 14.52 14.05 13.97 13.66 13.85 13.9 13.8 13.52 13.53 13.48 13.34 13.43 13.32 13.25 13.38 13.56 13.6 13.46 13.46 13.29 12.93 13.15 13.07 13.04 13.23 13.1 13.14 13.06 13.18 13.21 13.35 13.29 13.4 13.4 13.59 13.59 13.51 13.39 13.41 13.4 13.58 13.6 13.4 13.4 13.21 13.16 13.26 13.16 13.17 13.13 13.12 13.09 13.2 13.25 13.12 13.15 13.25 13.33 13.5 13.64 13.63 13.89 13.8 13.98 13.87 13.84 13.83 13.93 14.15 13.98 13.75 13.73 13.85 13.81 13.81 13.84 13.84 13.95 13.95 14.04 14.04 14.2 14.1 14.2 14.04 14.1 14.06 14.14 14.21 14.25 14.15 14.26 14.26 14.2 14.38 14.4 14.48 14.45 14.62 14.69 14.67 14.69 14.67 14.47 14.47 14.51 14.6 14.8 14.65 14.65 14.66 14.71 14.69 14.92 14.76 14.92 14.86 14.75 14.86 14.9 14.85 14.8 14.68 14.77 14.74 14.71 14.65 14.69 14.85 14.95 14.86 14.68 14.66 14.61 14.65 14.77 14.76 14.75 14.85 14.89 14.85 14.73 14.71 14.71 14.75 14.9 14.77 14.78 14.4 14.25 14.42 14.38 14.29 14.38 14.38 14.5 14.54 14.75 14.47 14.55 14.84 14.75 14.75 14.58 14.28 14.55 14.24 14.34 14.5 14.48 14.71 14.7 14.75 14.26 14.24 14.3 14.29 14.17 14.17 14.26 14.37 14.27 14.37 14.29 14.39 14.4 14.32 14.4 14.45 14.54 14.62 14.84 14.68 14.7 14.58 14.51 14.4 14.75 14.65 14.7 14.75 14.84 14.84 14.83 15 14.83 14.98 14.88 14.97 14.69 14.8 14.7 14.72 14.8 14.75 14.64 14.78 14.77 14.75 14.76 14.53 14.45 14.4 14.5 14.6 2/28/05 14.61 FUND SNAPSHOT ------------------------------------ Share Price $14.61 ------------------------------------ Common Share Net Asset Value $15.57 ------------------------------------ Premium/(Discount) to NAV -6.17% ------------------------------------ Market Yield 6.24% ------------------------------------ Taxable-Equivalent Yield1 9.53% ------------------------------------ Net Assets Applicable to Common Shares ($000) $237,559 ------------------------------------ Average Effective Maturity on Securities (Years) 20.37 ------------------------------------ Leverage-Adjusted Duration 7.27 ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 3/25/02) ------------------------------------ ON SHARE PRICE ON NAV ------------------------------------ 6-Month (Cumulative) 3.07% 4.79% ------------------------------------ 1-Year 3.01% 4.60% ------------------------------------ Since Inception 5.79% 9.53% ------------------------------------ SECTORS (as a % of total investments) ------------------------------------ Tax Obligation/Limited 28.2% ------------------------------------ Tax Obligation/General 23.9% ------------------------------------ Utilities 13.1% ------------------------------------ Water and Sewer 11.3% ------------------------------------ Education and Civic Organizations 6.1% ------------------------------------ Healthcare 5.4% ------------------------------------ Transportation 3.8% ------------------------------------ Other 8.2% ------------------------------------ 1 Taxable-equivalent yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 34.5%. For investments that generate qualified dividend income, the taxable-equivalent yield is lower. 2 The Fund also paid shareholders capital gains and net ordinary income distributions in December 2004 of $0.0498 per share. 18 Nuveen Insured California Tax-Free Advantage Municipal Fund NKX Performance OVERVIEW As of February 28, 2005 Pie Chart: CREDIT QUALITY (as a % of total investments) Insured 82% A (Uninsured) 12% BBB (Uninsured) 6% Bar Chart: 2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE Mar 0.0755 Apr 0.0755 May 0.0755 Jun 0.0755 Jul 0.0755 Aug 0.0755 Sep 0.0755 Oct 0.0755 Nov 0.0755 Dec 0.0725 Jan 0.0725 Feb 0.0725 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 3/1/04 15.05 15.04 14.99 14.93 15.08 15.12 15.05 15.05 14.96 15 15 14.9 14.95 15 14.78 14.84 14.9 14.91 14.83 14.96 14.99 14.94 15 15.02 14.94 14.7 14.45 14.49 14.52 14.24 13.7 13.6 13.59 13.55 13.75 13.75 13.62 13.51 13.43 13.42 13.49 13.45 13.35 13.42 13.58 13.66 13.85 13.6 13.49 13.29 13.15 13.08 13.1 13.01 12.8 12.9 13.03 13 13.01 13.1 13.33 13.29 13.4 13.4 13.4 13.51 13.41 13.42 13.42 13.38 13.38 13.11 13.15 13.07 13.1 12.94 12.98 12.99 12.92 12.92 12.85 12.93 12.94 12.99 12.92 12.96 13.25 13.25 13.38 13.42 13.49 13.49 13.59 13.42 13.5 13.4 13.5 13.6 13.53 13.39 13.5 13.62 13.58 13.55 13.46 13.6 13.6 13.6 13.65 13.7 13.75 13.85 13.88 13.75 13.89 13.79 13.81 13.81 13.81 13.87 13.8 13.87 13.89 13.97 14.05 14.11 14.1 14.15 14.15 14.19 14.25 14.33 14.35 14.45 14.35 14.43 14.35 14.45 14.47 14.4 14.44 14.55 14.75 14.82 14.75 14.67 14.7 14.69 14.75 14.79 14.7 14.55 14.5 14.52 14.45 14.45 14.35 14.5 14.55 14.49 14.4 14.35 14.32 14.28 14.38 14.29 14.17 14.16 14.31 14.31 14.51 14.79 14.79 14.51 14.62 14.51 14.64 14.57 14.4 14.35 14.04 14.08 14.14 14.1 14.08 14.22 14.25 14.27 14.22 14.32 14.74 14.5 14.39 14.11 14.19 14.37 14.25 14.27 14.18 14.12 14.13 14.14 14.01 14.01 13.9 13.86 13.76 13.84 13.81 14.35 14.34 14.25 14.13 14 14.21 14.4 14.4 14.46 14.45 14.5 14.32 14.34 14.37 14.4 14.6 14.62 14.5 14.62 14.64 14.63 14.63 14.59 14.57 14.52 14.54 14.61 14.61 14.67 14.67 14.61 14.61 14.77 14.72 14.72 14.58 14.53 14.63 14.79 14.57 14.59 14.66 14.65 14.69 14.77 2/28/05 14.74 FUND SNAPSHOT ------------------------------------ Share Price $14.74 ------------------------------------ Common Share Net Asset Value $14.92 ------------------------------------ Premium/(Discount) to NAV -1.21% ------------------------------------ Market Yield 5.90% ------------------------------------ Taxable-Equivalent Yield1 9.01% ------------------------------------ Net Assets Applicable to Common Shares ($000) $87,764 ------------------------------------ Average Effective Maturity on Securities (Years) 20.72 ------------------------------------ Leverage-Adjusted Duration 7.50 ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 11/21/02) ------------------------------------ ON SHARE PRICE ON NAV ------------------------------------ 6-Month (Cumulative) 7.09% 5.15% ------------------------------------ 1-Year 4.40% 4.86% ------------------------------------ Since Inception 5.33% 7.98% ------------------------------------ SECTORS (as a % of total investments) ------------------------------------ Tax Obligation/General 31.6% ------------------------------------ Tax Obligation/Limited 30.2% ------------------------------------ Healthcare 12.5% ------------------------------------ Transportation 9.3% ------------------------------------ Water and Sewer 7.6% ------------------------------------ Other 8.8% ------------------------------------ 1 Taxable-equivalent yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 34.5%. For investments that generate qualified dividend income, the taxable-equivalent yield is lower. 19 Shareholder MEETING REPORT The Shareholder Meeting was held in San Francisco, California, on November 17, 2004.
NPC NCL NCU ------------------------------------------------------------------------------------------------------------------------------------ APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS: Common and Common and Common and MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred shares voting shares voting shares voting shares voting shares voting shares voting together together together together together together as a class as a class as a class as a class as a class as a class ==================================================================================================================================== Robert P. Bremner For 5,850,554 -- 11,783,304 -- 5,394,682 -- Withhold 16,436 -- 28,627 -- 10,332 -- ------------------------------------------------------------------------------------------------------------------------------------ Total 5,866,990 -- 11,811,931 -- 5,405,014 -- ==================================================================================================================================== Lawrence H. Brown For 5,848,737 -- 11,777,804 -- 5,391,502 -- Withhold 18,253 -- 34,127 -- 13,512 -- ------------------------------------------------------------------------------------------------------------------------------------ Total 5,866,990 -- 11,811,931 -- 5,405,014 -- ==================================================================================================================================== Jack B. Evans For 5,850,554 -- 11,783,971 -- 5,394,682 -- Withhold 16,436 -- 27,960 -- 10,332 -- ------------------------------------------------------------------------------------------------------------------------------------ Total 5,866,990 -- 11,811,931 -- 5,405,014 -- ==================================================================================================================================== William C. Hunter For 5,850,554 -- 11,778,471 -- 5,391,182 -- Withhold 16,436 -- 33,460 -- 13,832 -- ------------------------------------------------------------------------------------------------------------------------------------ Total 5,866,990 -- 11,811,931 -- 5,405,014 -- ==================================================================================================================================== William J. Schneider For -- 1,415 -- 3,446 -- 1,580 Withhold -- -- -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------------ Total -- 1,415 -- 3,446 -- 1,580 ==================================================================================================================================== Timothy R. Schwertfeger For -- 1,415 -- 3,446 -- 1,580 Withhold -- -- -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------------ Total -- 1,415 -- 3,446 -- 1,580 ==================================================================================================================================== Judith M. Stockdale For 5,849,337 -- 11,778,471 -- 5,386,875 -- Withhold 17,653 -- 33,460 -- 18,139 -- ------------------------------------------------------------------------------------------------------------------------------------ Total 5,866,990 -- 11,811,931 -- 5,405,014 -- ====================================================================================================================================
20
NAC NVX NZH ------------------------------------------------------------------------------------------------------------------------------------ APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS: Common and Common and Common and MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred shares voting shares voting shares voting shares voting shares voting shares voting together together together together together together as a class as a class as a class as a class as a class as a class ==================================================================================================================================== Robert P. Bremner For 22,378,628 -- 14,272,591 -- 23,545,113 -- Withhold 74,231 -- 31,559 -- 95,209 -- ------------------------------------------------------------------------------------------------------------------------------------ Total 22,452,859 -- 14,304,150 -- 23,640,322 -- ==================================================================================================================================== Lawrence H. Brown For 22,372,628 -- 14,272,166 -- 23,545,113 -- Withhold 80,231 -- 31,984 -- 95,209 -- ------------------------------------------------------------------------------------------------------------------------------------ Total 22,452,859 -- 14,304,150 -- 23,640,322 -- ==================================================================================================================================== Jack B. Evans For 22,378,628 -- 14,270,017 -- 23,542,540 -- Withhold 74,231 -- 34,133 -- 97,782 -- ------------------------------------------------------------------------------------------------------------------------------------ Total 22,452,859 -- 14,304,150 -- 23,640,322 -- ==================================================================================================================================== William C. Hunter For 22,372,628 -- 14,271,517 -- 23,544,040 -- Withhold 80,231 -- 32,633 -- 96,282 -- ------------------------------------------------------------------------------------------------------------------------------------ Total 22,452,859 -- 14,304,150 -- 23,640,322 -- ==================================================================================================================================== William J. Schneider For -- 6,750 -- 4,175 -- 7,271 Withhold -- -- -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------------ Total -- 6,750 -- 4,175 -- 7,271 ==================================================================================================================================== Timothy R. Schwertfeger For -- 6,750 -- 4,175 -- 7,271 Withhold -- -- -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------------ Total -- 6,750 -- 4,175 -- 7,271 ==================================================================================================================================== Judith M. Stockdale For 22,372,628 -- 14,271,517 -- 23,544,040 -- Withhold 80,231 -- 32,633 -- 96,282 -- ------------------------------------------------------------------------------------------------------------------------------------ Total 22,452,859 -- 14,304,150 -- 23,640,322 -- ====================================================================================================================================
21 Shareholder MEETING REPORT (continued)
NKL NKX ------------------------------------------------------------------------------------------------------------------------------------ APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS: Common and Common and MuniPreferred MuniPreferred MuniPreferred MuniPreferred shares voting shares voting shares voting shares voting together together together together as a class as a class as a class as a class ==================================================================================================================================== Robert P. Bremner For 14,999,395 -- 5,729,225 -- Withhold 63,592 -- 16,323 -- ------------------------------------------------------------------------------------------------------------------------------------ Total 15,062,987 -- 5,745,548 -- ==================================================================================================================================== Lawrence H. Brown For 14,999,395 -- 5,729,225 -- Withhold 63,592 -- 16,323 -- ------------------------------------------------------------------------------------------------------------------------------------ Total 15,062,987 -- 5,745,548 -- ==================================================================================================================================== Jack B. Evans For 14,999,395 -- 5,729,025 -- Withhold 63,592 -- 16,523 -- ------------------------------------------------------------------------------------------------------------------------------------ Total 15,062,987 -- 5,745,548 -- ==================================================================================================================================== William C. Hunter For 14,999,395 -- 5,729,225 -- Withhold 63,592 -- 16,323 -- ------------------------------------------------------------------------------------------------------------------------------------ Total 15,062,987 -- 5,745,548 -- ==================================================================================================================================== William J. Schneider For -- 4,489 -- 1,728 Withhold -- 12 -- 10 ------------------------------------------------------------------------------------------------------------------------------------ Total -- 4,501 -- 1,738 ==================================================================================================================================== Timothy R. Schwertfeger For -- 4,489 -- 1,728 Withhold -- 12 -- 10 ------------------------------------------------------------------------------------------------------------------------------------ Total -- 4,501 -- 1,738 ==================================================================================================================================== Judith M. Stockdale For 14,999,395 -- 5,728,925 -- Withhold 63,592 -- 16,623 -- ------------------------------------------------------------------------------------------------------------------------------------ Total 15,062,987 -- 5,745,548 -- ====================================================================================================================================
22 Nuveen Insured California Premium Income Municipal Fund, Inc. (NPC) Portfolio of INVESTMENTS February 28, 2005 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 8.8% (6.2% OF TOTAL INVESTMENTS) $ 2,000 California Educational Facilities Authority, Revenue Bonds, 9/06 at 102.00 AAA $ 2,125,520 Santa Clara University, Series 1996, 5.750%, 9/01/26 - MBIA Insured 2,125 California Educational Facilities Authority, Student Loan Revenue 3/08 at 102.00 Aaa 2,235,457 Bonds, Cal Loan Program, Series 2001A, 5.400%, 3/01/21 (Alternative Minimum Tax) - MBIA Insured 2,500 California State University, Systemwide Revenue Bonds, 5/14 at 100.00 AAA 2,697,250 Series 2004A, 5.000%, 11/01/18 - FSA Insured 2,000 University of California, Revenue Bonds, Multi-Purpose Projects, 9/10 at 101.00 AAA 2,082,480 Series 2002O, 5.125%, 9/01/31 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ HEALTHCARE - 4.7% (3.3% OF TOTAL INVESTMENTS) 3,000 California Health Facilities Financing Authority, Insured 8/08 at 101.00 AAA 3,211,590 Revenue Bonds, Sutter Health, Series 1998A, 5.375%, 8/15/30 - MBIA Insured 1,500 California Statewide Community Development Authority, 8/09 at 101.00 AAA 1,649,850 Certificates of Participation, Sutter Health Obligated Group, Series 1999, 5.500%, 8/15/19 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 0.3% (0.2% OF TOTAL INVESTMENTS) 305 California Housing Finance Agency, Single Family Mortgage 2/07 at 102.00 AAA 318,615 Bonds II, Series 1997A-1, 6.000%, 8/01/20 (Alternative Minimum Tax) - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 41.3% (29.0% OF TOTAL INVESTMENTS) Bonita Unified School District, San Diego County, California, General Obligation Bonds, Series 2004A: 1,890 5.250%, 8/01/23 - MBIA Insured 8/14 at 100.00 AAA 2,057,662 1,250 5.250%, 8/01/25 - MBIA Insured 8/14 at 100.00 AAA 1,353,775 California, Various Purpose General Obligation Bonds, Series 2000: 7,995 5.750%, 3/01/22 - MBIA Insured 3/10 at 101.00 AAA 8,892,119 2,000 5.750%, 3/01/27 - MBIA Insured 3/10 at 101.00 AAA 2,217,020 2,000 California, General Obligation Veterans Welfare Bonds, 6/07 at 101.00 AAA 2,039,880 Series 2001BZ, 5.375%, 12/01/24 (Alternative Minimum Tax) - MBIA Insured El Segundo Unified School District, Los Angeles County, California, General Obligation Bonds, Series 2004: 2,580 5.250%, 9/01/21 - FGIC Insured 9/14 at 100.00 AAA 2,829,770 1,775 5.250%, 9/01/22 - FGIC Insured 9/14 at 100.00 AAA 1,940,962 1,225 Fresno Unified School District, Fresno County, California, 2/13 at 103.00 AAA 1,488,461 General Obligation Refunding Bonds, Series 1998A, 6.550%, 8/01/20 - MBIA Insured 1,180 Jurupa Unified School District, Riverside County, California, 8/13 at 100.00 AAA 1,256,712 General Obligation Bonds, Series 2004, 5.000%, 8/01/21 - FGIC Insured 2,000 Los Angeles Unified School District, California, General 7/08 at 102.00 AAA 2,115,280 Obligation Bonds, Series 1997A, 5.000%, 7/01/21 - FGIC Insured 3,000 Pomona Unified School District, Los Angeles County, 8/11 at 103.00 AAA 3,604,110 California, General Obligation Refunding Bonds, Series 1997A, 6.500%, 8/01/19 - MBIA Insured San Diego Unified School District, San Diego County, California, General Obligation Bonds, Election of 1998, Series 2001C: 1,335 5.000%, 7/01/21 - FSA Insured 7/11 at 102.00 AAA 1,419,866 3,500 5.000%, 7/01/22 - FSA Insured 7/11 at 102.00 AAA 3,705,240 4,895 5.000%, 7/01/23 - FSA Insured 7/11 at 102.00 AAA 5,161,190 2,525 San Joaquin Delta Community College District, California, 8/15 at 100.00 AAA 2,647,261 General Obligation Bonds, Series 2005A, 5.000%, 8/01/29 - FSA Insured 23 Nuveen Insured California Premium Income Municipal Fund, Inc. (NPC) (continued) Portfolio of INVESTMENTS February 28, 2005 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 22.3% (15.7% OF TOTAL INVESTMENTS) $ 1,000 Brea and Olinda Unified School District, Orange County, 8/11 at 101.00 AAA $ 1,048,370 California, Certificates of Participation Refunding, Series 2002A, 5.125%, 8/01/26 - FSA Insured California Infrastructure Economic Development Bank, Revenue Bonds, North County Center for Self-Sufficiency Corporation, Series 2004: 1,215 5.000%, 12/01/19 - AMBAC Insured 12/13 at 100.00 AAA 1,297,013 1,615 5.000%, 12/01/21 - AMBAC Insured 12/13 at 100.00 AAA 1,711,803 2,000 California State Public Works Board, Lease Revenue Bonds, 11/09 at 101.00 AAA 2,221,300 Department of Health Services, Series 1999A, 5.750%, 11/01/24 - MBIA Insured 1,900 Corona-Norco Unified School District, Riverside County, 9/12 at 100.00 AAA 2,019,947 California, Special Tax Bonds, Community Facilities District 98-1, Series 2002, 5.100%, 9/01/25 - AMBAC Insured 5,000 El Monte, California, Senior Lien Certificates of Participation, 1/11 at 100.00 AAA 5,228,350 Department of Public Services Facility Phase II, Series 2001, 5.250%, 1/01/34 - AMBAC Insured 1,400 Indian Wells Redevelopment Agency, California, Tax Allocation 9/13 at 100.00 AAA 1,489,208 Bonds, Consolidated Whitewater Project Area, Series 2003A, 5.000%, 9/01/20 - AMBAC Insured 895 Los Angeles Community Redevelopment Agency, California, 12/14 at 100.00 AAA 958,822 Tax Allocation Bonds, Bunker Hill Project, Series 2004A, 5.000%, 12/01/20 - FSA Insured 1,000 Los Angeles County Metropolitan Transportation Authority, 7/13 at 100.00 AAA 1,073,580 California, Proposition A First Tier Senior Sales Tax Revenue Bonds, Series 2003B, 5.000%, 7/01/19 - MBIA Insured 3,000 Santa Clara County Financing Authority, California, Lease 11/07 at 102.00 AAA 3,175,620 Revenue Bonds, VMC Facility Replacement Project, Series 1994A, 5.000%, 11/15/22 - AMBAC Insured 2,805 Yucaipa-Calimesa Joint Unified School District, 10/11 at 100.00 AAA 2,883,316 San Bernardino County, California, General Obligation Refunding Bonds, Series 2001A, 5.000%, 10/01/31 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 3.4% (2.4% OF TOTAL INVESTMENTS) 3,400 San Diego Unified Port District, California, Revenue Bonds, 9/14 at 100.00 AAA 3,545,010 Series 2004B, 5.000%, 9/01/29 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED *** - 30.8% (21.6% OF TOTAL INVESTMENTS) 2,500 Fresno Unified School District, Fresno County, California, 8/09 at 102.00 AAA 2,684,300 General Obligation Bonds, Series 2001A, 5.125%, 8/01/26 - FSA Insured 6,000 Huntington Park Redevelopment Agency, California, No Opt. Call AAA 8,684,760 Single Family Residential Mortgage Revenue Refunding Bonds, Series 1986A, 8.000%, 12/01/19 5,135 Palmdale Community Redevelopment Agency, California, No Opt. Call AAA 7,001,932 Single Family Restructured Mortgage Revenue Bonds, Series 1986A, 8.000%, 3/01/16 (Alternative Minimum Tax) 6,220 Riverside County, California, GNMA Mortgage-Backed No Opt. Call AAA 9,500,926 Securities Program Single Family Mortgage Revenue Bonds, Series 1987A, 9.000%, 5/01/21 (Alternative Minimum Tax) 1,485 San Jose, California, Single Family Mortgage Revenue Bonds, No Opt. Call AAA 2,113,883 Series 1985A, 9.500%, 10/01/13 1,800 University of California, Hospital Revenue Bonds, Davis 7/06 at 101.00 AAA 1,896,138 Medical Center, Series 1996, 5.750%, 7/01/24 (Pre-refunded to 7/01/06) - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 6.7% (4.7% OF TOTAL INVESTMENTS) 4,000 California Pollution Control Financing Authority, Revenue 6/05 at 100.00 AAA 4,012,360 Bonds, Southern California Edison Company, Series 1992B, 6.400%, 12/01/24 (Alternative Minimum Tax) - MBIA Insured 2,600 Sacramento Municipal Utility District, California, Electric No Opt. Call AAA 2,882,360 Revenue Refunding Bonds, Series 2003S, 5.000%, 11/15/13 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 22.9% (16.1% OF TOTAL INVESTMENTS) 5,255 El Dorado Irrigation District, California, Water and Sewer 3/13 at 100.00 AAA 5,573,243 Certificates of Participation, Series 2003A, 5.000%, 3/01/20 - FGIC Insured 1,230 El Dorado Irrigation District, California, Water and Sewer 3/14 at 100.00 AAA 1,305,534 Certificates of Participation, Series 2004A, 5.000%, 3/01/21 - FGIC Insured 2,000 Los Angeles, California, Wastewater System Revenue Bonds, 5/05 at 101.00 AAA 2,007,820 Series 1993D, 4.700%, 11/01/19 - FGIC Insured 24 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER (continued) $ 750 Sacramento County Sanitation District Financing Authority, 12/14 at 100.00 AAA $ 802,860 California, Revenue Bonds, Series 2004A, 5.000%, 12/01/21 - AMBAC Insured 3,400 San Diego Public Facilities Financing Authority, California, 5/07 at 101.00 AAA 3,587,306 Sewerage Revenue Bonds, Series 1997A, 5.250%, 5/15/22 - FGIC Insured 2,150 Santa Clara Valley Water District, California, Water Utility 6/10 at 100.00 AAA 2,245,718 System Revenue Bonds, Series 2000A, 5.125%, 6/01/31 - FGIC Insured 1,310 Santa Fe Springs Public Financing Authority, California, 5/13 at 100.00 AAA 1,358,391 Water Revenue Bonds, Series 2003A, 5.000%, 5/01/33 - MBIA Insured 1,345 West Basin Municipal Water District, California, Revenue 8/13 at 100.00 AAA 1,429,963 Certificates of Participation, Series 2003A, 5.000%, 8/01/20 - MBIA Insured 5,000 Wheeler Ridge-Maricopa Water District, Kern County, 11/06 at 102.00 AAA 5,349,100 California, Water Revenue Refunding Bonds, Series 1996, 5.700%, 11/01/15 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ $ 129,990 Total Long-Term Investments (cost $133,830,669) - 141.2% 146,139,003 =============----------------------------------------------------------------------------------------------------------------------- SHORT-TERM INVESTMENTS - 1.2% (0.8% OF TOTAL INVESTMENTS) 1,200 California Department of Water Resources, Power Supply A-1+ 1,200,000 Revenue Bonds, Variable Rate Demand Obligations, Series 2002C-7, 1.840%, 5/01/22 - FSA Insured+ ------------------------------------------------------------------------------------------------------------------------------------ $ 1,200 Total Short-Term Investments (cost $1,200,000) 1,200,000 =============----------------------------------------------------------------------------------------------------------------------- Total Investments (cost $135,030,669) - 142.4% 147,339,003 -------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 1.1% 1,139,458 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (43.5)% (45,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 103,478,461 ====================================================================================================================
All of the bonds in the portfolio 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. (1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. * 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. + 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 in effect at the end of the reporting period. This rate changes periodically based on market conditions or a specified market index. See accompanying notes to financial statements. 25 Nuveen Insured California Premium Income Municipal Fund 2, Inc. (NCL) Portfolio of INVESTMENTS February 28, 2005 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 11.6% (7.8% OF TOTAL INVESTMENTS) California Educational Facilities Authority, Revenue Bonds, Santa Clara University, Series 1996: $ 2,400 5.750%, 9/01/21 - MBIA Insured 9/06 at 102.00 AAA $ 2,559,120 3,000 5.750%, 9/01/26 - MBIA Insured 9/06 at 102.00 AAA 3,188,280 2,000 California Educational Facilities Authority, Revenue Bonds, 11/10 at 100.00 AAA 2,254,520 University of the Pacific, Series 2000, 5.875%, 11/01/20 - MBIA Insured 2,125 California Educational Facilities Authority, Student Loan 3/08 at 102.00 AAA 2,235,457 Revenue Bonds, Cal Loan Program, Series , 5.400%, 3/01/21 (Alternative Minimum Tax) - MBIA Insured 5,380 California State University, Systemwide Revenue Bonds, 5/14 at 100.00 AAA 5,865,007 Series 2004A, 5.000%, 11/01/16 - FSA Insured 6,000 University of California, Revenue Bonds, Multi-Purpose 5/13 at 100.00 AAA 6,264,480 Projects, Series 2003A, 5.000%, 5/15/27 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ HEALTHCARE - 4.6% (3.1% OF TOTAL INVESTMENTS) 1,450 California Health Facilities Financing Authority, Insured 7/06 at 102.00 AAA 1,539,857 Health Facility Revenue Refunding Bonds, Mark Twain St. Joseph's Healthcare Corporation, Series 1996A, 6.000%, 7/01/19 - MBIA Insured 5,000 California Health Facilities Financing Authority, Insured 7/06 at 102.00 AAA 5,306,750 Health Facility Revenue Refunding Bonds, Catholic Healthcare West, Series 1996A, 6.000%, 7/01/25 - MBIA Insured 1,755 University of California, Hospital Revenue Bonds, UCLA 5/12 at 101.00 AAA 1,974,129 Medical Center, Series 2004A, 5.500%, 5/15/18 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 0.6% (0.3% OF TOTAL INVESTMENTS) 1,105 California Housing Finance Agency, Single Family Mortgage 8/07 at 101.50 AAA 1,151,852 Bonds, Series 1997C-2-II, 5.625%, 8/01/20 (Alternative Minimum Tax) - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 26.5% (17.8% OF TOTAL INVESTMENTS) 1,460 ABC Unified School District, Los Angeles County, California, 8/10 at 101.00 AAA 1,652,034 General Obligation Bonds, Series 2000B, 5.750%, 8/01/16 - FGIC Insured 485 California, General Obligation Veterans Welfare Bonds, 6/05 at 101.00 AAA 488,342 Series 1997BH, 5.500%, 12/01/24 (Alternative Minimum Tax) - FSA Insured 2,500 California, Various Purpose General Obligation Bonds, 9/09 at 101.00 AAA 2,742,500 Series 1999, 5.500%, 9/01/24 - FSA Insured California, Various Purpose General Obligation Bonds, Series 2000: 7,995 5.750%, 3/01/22 - MBIA Insured 3/10 at 101.00 AAA 8,892,119 2,000 5.750%, 3/01/27 - MBIA Insured 3/10 at 101.00 AAA 2,217,020 4,400 California, General Obligation Bonds, Series 2003, 2/13 at 100.00 AAA 4,546,608 5.000%, 2/01/31 - MBIA Insured 3,000 California, General Obligation Veterans Welfare Bonds, 6/07 at 101.00 AAA 3,059,820 Series 2001BZ, 5.375%, 12/01/24 (Alternative Minimum Tax) - MBIA Insured California, General Obligation Bonds, Series 2004: 2,500 5.000%, 2/01/18 - AMBAC Insured 2/14 at 100.00 AAA 2,681,175 2,250 5.000%, 4/01/31 - AMBAC Insured 4/14 at 100.00 AAA 2,333,947 1,500 Hacienda La Puente Unified School District, Los Angeles 8/10 at 101.00 AAA 1,613,775 County, California, General Obligation Bonds, Series 2000A, 5.250%, 8/01/25 - MBIA Insured Kern Community College District, California, General Obligation Bonds, Series 2003A: 3,655 5.000%, 11/01/20 - FGIC Insured 11/13 at 100.00 AAA 3,911,069 2,665 5.000%, 11/01/21 - FGIC Insured 11/13 at 100.00 AAA 2,840,064 1,750 Lake Tahoe Unified School District, El Dorado County, 8/09 at 100.00 AAA 1,887,883 California, General Obligation Bonds, Series 1999A, 5.250%, 8/01/24 - FGIC Insured 26 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL (continued) $ 2,200 Los Angeles Unified School District, California, General 7/13 at 100.00 AAA $ 2,373,558 Obligation Bonds, Series 2003F, 5.000%, 7/01/17 - FSA Insured Manteca Unified School District, San Joaquin County, California, General Obligation Bonds, Series 2004: 1,000 5.250%, 8/01/21 - FSA Insured 8/14 at 100.00 AAA 1,096,080 1,000 5.250%, 8/01/22 - FSA Insured 8/14 at 100.00 AAA 1,092,800 1,270 Merced City School District, Merced County, California, 8/13 at 100.00 AAA 1,346,327 General Obligation Bonds, Series 2004, 5.000%, 8/01/22 - FGIC Insured 1,125 San Diego Unified School District, California, General No Opt. Call AAA 516,161 Obligation Bonds, Election of 1998, Series 1999A, 0.000%, 7/01/21 - FGIC Insured 2,000 San Francisco Community College District, California, 6/10 at 102.00 AAA 2,086,120 General Obligation Bonds, Series 2002A, 5.000%, 6/15/26 - FGIC Insured 1,000 San Ramon Valley Unified School District, Contra Costa 8/14 at 100.00 AAA 1,057,320 County, California, General Obligation Bonds, Series 2004, 5.000%, 8/01/24 - FSA Insured 2,445 Washington Unified School District, Yolo County, California, 8/13 at 100.00 AAA 2,603,949 General Obligation Bonds, Series 2004A, 5.000%, 8/01/21 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 47.0% (31.7% OF TOTAL INVESTMENTS) Anaheim Public Finance Authority, California, Subordinate Lease Revenue Bonds, Public Improvement Project, Series 1997C: 5,130 0.000%, 9/01/18 - FSA Insured No Opt. Call AAA 2,780,819 8,000 0.000%, 9/01/21 - FSA Insured No Opt. Call AAA 3,635,520 California Infrastructure Economic Development Bank, Revenue Bonds, North County Center for Self-Sufficiency Corporation, Series 2004: 1,535 5.000%, 12/01/20 - AMBAC Insured 12/13 at 100.00 AAA 1,635,113 1,780 5.000%, 12/01/23 - AMBAC Insured 12/13 at 100.00 AAA 1,873,343 3,500 California Department of Transportation, Federal Highway No Opt. Call AAA 3,860,605 Grant Anticipation Bonds, Series 2004A, 5.000%, 2/01/15 - FGIC Insured 3,450 California State Public Works Board, Lease Revenue Bonds, 11/09 at 101.00 AAA 3,831,743 Department of Health Services, Series 1999A, 5.750%, 11/01/24 - MBIA Insured 5,000 Compton Community Redevelopment Agency, California, 8/05 at 102.00 AAA 5,186,700 Tax Allocation Refunding Bonds, Merged Area Redevelopment Projects, Series 1995A, 6.500%, 8/01/13 - FSA Insured 4,000 Contra Costa County, California, Certificates of Participation 11/07 at 102.00 AAA 4,318,320 Refunding, Merrithew Memorial Hospital Replacement Project, Series 1997, 5.500%, 11/01/22 - MBIA Insured 6,000 El Monte, California, Senior Lien Certificates of Participation, 1/11 at 100.00 AAA 6,244,440 Department of Public Services Facility Phase II, Series 2001, 5.000%, 1/01/21 - AMBAC Insured 3,000 Galt Schools Joint Powers Authority, Sacramento County, 11/07 at 102.00 AAA 3,285,330 California, Revenue Refunding Bonds, High School and Elementary School Facilities, Series 1997A, 5.875%, 11/01/24 - MBIA Insured 5,000 Kern County Board of Education, California, Refunding 5/08 at 102.00 AAA 5,251,950 Certificates of Participation, Series 1998A, 5.200%, 5/01/28 - MBIA Insured 5,000 La Quinta Redevelopment Agency, California, Tax Allocation 9/07 at 102.00 AAA 5,253,500 Refunding Bonds, Redevelopment Project Area 1, Series 1998, 5.200%, 9/01/28 - AMBAC Insured 2,300 Long Beach Bond Finance Authority, Multiple Project 8/15 at 100.00 AAA 2,423,165 Tax Allocation Bonds, Housing and Gas Utility Financing Project Areas, Series 2005A-1, 5.000%, 8/01/25 (WI, settling 3/02/05) - AMBAC Insured 4,000 Los Angeles, California, Certificates of Participation, 6/13 at 100.00 AAA 4,135,000 Municipal Improvement Corporation, Series 2003AW, 5.000%, 6/01/33 - AMBAC Insured 1,000 Los Angeles Community Redevelopment Agency, California, 12/14 at 100.00 AAA 1,071,310 Tax Allocation Bonds, Bunker Hill Project, Series 2004A, 5.000%, 12/01/20 - FSA Insured 3,865 Los Angeles County Metropolitan Transportation Authority, 7/10 at 101.00 AAA 4,110,234 California, Proposition C Second Senior Lien Sales Tax Revenue Bonds, Series 2000A, 5.250%, 7/01/30 - FGIC Insured 1,250 Los Angeles County Metropolitan Transportation Authority, 7/13 at 100.00 AAA 1,341,975 California, Proposition A First Tier Senior Sales Tax Revenue Bonds, Series 2003B, 5.000%, 7/01/19 - MBIA Insured 27 Nuveen Insured California Premium Income Municipal Fund 2, Inc. (NCL) (continued) Portfolio of INVESTMENTS February 28, 2005 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED (continued) $ 2,690 Norwalk Community Facilities Financing Authority, 9/05 at 102.00 AAA $ 2,789,046 Los Angeles County, California, Tax Allocation Revenue Refunding Bonds, Series 1995A, 6.000%, 9/01/15 - FSA Insured 2,780 Pittsburg Redevelopment Agency, California, Tax Allocation No Opt. Call AAA 3,058,139 Refunding Bonds, Los Medanos Community Development Project, Series 2003A, 5.000%, 8/01/12 - MBIA Insured 4,140 Plumas County, California, Certificates of Participation, 6/13 at 101.00 AAA 4,312,555 Capital Improvement Program, Series 2003A, 5.000%, 6/01/28 - AMBAC Insured 2,000 Poway Redevelopment Agency, California, Tax Allocation 12/10 at 102.00 AAA 2,260,880 Refunding Bonds, Paguay Redevelopment Project, Series 2000, 5.750%, 6/15/33 - MBIA Insured 1,000 Rocklin Unified School District, Placer County, California, 9/13 at 100.00 AAA 1,050,090 Special Tax Bonds, Community Facilities District 1, Series 2004, 5.000%, 9/01/25 - MBIA Insured 5,000 San Bernardino Joint Powers Financing Authority, 9/09 at 102.00 AAA 5,514,700 California, Certificates of Participation Refunding, Police Station Financing Project, Series 1999, 5.500%, 9/01/20 - MBIA Insured 3,500 San Francisco Bay Area Rapid Transit District, California, 7/09 at 101.00 AAA 3,799,285 Sales Tax Revenue Bonds, Series 1999, 5.500%, 7/01/34 - FGIC Insured 1,930 Santa Margarita/Dana Point Authority, Orange County, No Opt. Call AAA 1,970,974 California, Revenue Refinancing Bonds, Improvement Districts 1, 2, 2A and 8, Series 1994A, 7.250%, 8/01/05 - MBIA Insured 5,450 Visalia, California, Certificates of Participation Refunding, 12/06 at 102.00 AAA 5,774,221 Motor Vehicle License Fee Enhancement, Series 1996A, 5.375%, 12/01/26 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 6.7% (4.5% OF TOTAL INVESTMENTS) 6,500 Foothill/Eastern Transportation Corridor Agency, California, 1/10 at 65.32 AAA 3,369,665 Toll Road Revenue Refunding Bonds, Series 1999, 0.000%, 1/15/18 - MBIA Insured 4,000 Orange County Transportation Authority, California, Toll Road 8/13 at 100.00 AAA 4,310,960 Revenue Bonds, 91 Express Lanes Project, Series 2003A, 5.000%, 8/15/18 - AMBAC Insured 5,000 San Francisco Airports Commission, California, Revenue 5/11 at 100.00 AAA 5,174,000 Refunding Bonds, San Francisco International Airport, Second Series 2001, Issue 27A, 5.250%, 5/01/31 (Alternative Minimum Tax) - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED *** - 13.4% (9.1% OF TOTAL INVESTMENTS) California Infrastructure Economic Development Bank, Revenue Bonds, Asian Art Museum of San Francisco, Series 2000: 1,295 5.500%, 6/01/19 (Pre-refunded to 6/01/10) - MBIA Insured 6/10 at 101.00 AAA 1,462,962 1,000 5.500%, 6/01/20 (Pre-refunded to 6/01/10) - MBIA Insured 6/10 at 101.00 AAA 1,129,700 2,575 Calipatria Unified School District, Imperial County, 8/06 at 102.00 AAA 2,739,543 California, General Obligation Bonds, Series 1996A, 5.625%, 8/01/13 (Pre-refunded to 8/01/06) - AMBAC Insured 2,725 Central Unified School District, Fresno County, California, 3/05 at 100.00 AAA 2,759,117 General Obligation Bonds, Series 1993, 5.625%, 3/01/18 - AMBAC Insured 3,000 Escondido Union High School District, San Diego County, 11/06 at 102.00 AAA 3,214,830 California, General Obligation Bonds, Series 1996, 5.700%, 11/01/10 - MBIA Insured Fresno Unified School District, Fresno County, California, General Obligation Bonds, Series 2001F: 1,065 5.125%, 8/01/21 - FSA Insured 8/09 at 102.00 AAA 1,143,512 1,160 5.125%, 8/01/22 - FSA Insured 8/09 at 102.00 AAA 1,245,515 1,220 5.125%, 8/01/23 - FSA Insured 8/09 at 102.00 AAA 1,309,938 1,890 Menifee Union School District, Riverside County, California, 9/06 at 102.00 AAA 2,029,312 Certificates of Participation, School Projects, Series 1996, 6.125%, 9/01/24 (Pre-refunded to 9/01/06) - FSA Insured 2,500 Oakland, California, Insured Revenue Bonds, 1800 Harrison 1/10 at 100.00 AAA 2,844,600 Foundation - Kaiser Permanente, Series 1999A, 6.000%, 1/01/29 (Pre-refunded to 1/01/10) - AMBAC Insured 4,320 Riverside County, California, GNMA Mortgage-Backed No Opt. Call AAA 6,051,370 Securities Program Single Family Mortgage Revenue Bonds, Series 1987B, 8.625%, 5/01/16 (Alternative Minimum Tax) 28 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 12.2% (8.2% OF TOTAL INVESTMENTS) $ 3,740 California Pollution Control Financing Authority, Revenue 9/09 at 101.00 AAA $ 4,022,594 Refunding Bonds, Southern California Edison Company, Series 1999B, 5.450%, 9/01/29 - MBIA Insured 3,215 Modesto Irrigation District, California, Revenue Refunding 10/06 at 102.00 AAA 3,447,284 Bonds, Series 1996A, 6.000%, 10/01/15 - MBIA Insured 3,500 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/12 at 101.00 AAA 3,738,105 Series 2002II, 5.125%, 7/01/26 - FSA Insured 1,790 Sacramento City Financing Authority, California, Capital 12/09 at 102.00 AAA 2,031,829 Improvement Revenue Bonds, Solid Waste and Redevelopment Projects, Series 1999, 5.800%, 12/01/19 - AMBAC Insured 1,950 Salinas Valley Solid Waste Authority, California, Revenue 8/12 at 100.00 AAA 2,044,516 Bonds, Series 2002, 5.250%, 8/01/27 (Alternative Minimum Tax) - AMBAC Insured Santa Clara, California, Subordinate Electric Revenue Bonds, Series 2003A: 2,800 5.000%, 7/01/24 - MBIA Insured 7/13 at 100.00 AAA 2,950,052 5,000 5.000%, 7/01/28 - MBIA Insured 7/13 at 100.00 AAA 5,212,600 ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 25.6% (17.3% OF TOTAL INVESTMENTS) 1,700 Castaic Lake Water Agency, California, Revenue Certificates 8/14 at 100.00 AAA 1,817,878 of Participation, Series 2004A, 5.000%, 8/01/20 - AMBAC Insured 2,975 Chino Basin Regional Finance Authority, California, Sewerage 8/05 at 101.00 AAA 3,043,366 System Revenue Bonds, Inland Empire Utilities Agency, Series 1994, 6.000%, 8/01/16 - AMBAC Insured 2,000 El Dorado Irrigation District, California, Water and Sewer 3/14 at 100.00 AAA 2,122,820 Certificates of Participation, Series 2004A, 5.000%, 3/01/21 - FGIC Insured 2,700 Los Angeles County Sanitation Districts Financing 10/13 at 100.00 AAA 2,876,796 Authority, California, Senior Revenue Bonds, Capital Projects, Series 2003A, 5.000%, 10/01/21 - FSA Insured 12,000 Orange County Sanitation District, California, Certificates 8/13 at 100.00 AAA 12,412,200 of Participation, Series 2003, 5.000%, 2/01/33 - FGIC Insured 2,775 Pomona Public Financing Authority, California, Revenue 5/09 at 101.00 AAA 3,004,826 Bonds, Water Facilities Project, Series 1999AC, 5.500%, 5/01/29 - FGIC Insured 1,000 Sacramento County Sanitation District Financing Authority, 12/10 at 101.00 AAA 1,112,170 California, Revenue Bonds, Series 2000A, 5.500%, 12/01/20 - AMBAC Insured 750 Sacramento County Sanitation District Financing Authority, 12/14 at 100.00 AAA 802,860 California, Revenue Bonds, Series 2004A, 5.000%, 12/01/21 - AMBAC Insured 1,520 San Buenaventura, California, Water Revenue Certificates 10/14 at 100.00 AAA 1,596,137 of Participation, Series 2004, 5.000%, 10/01/25 - AMBAC Insured 3,675 San Dieguito Water District, California, Water Revenue Bonds, 10/14 at 100.00 AAA 3,900,535 Series 2004, 5.000%, 10/01/23 - FGIC Insured Santa Clara Valley Water District, California, Certificates of Participation, Series 2004A: 1,400 5.000%, 2/01/19 - FGIC Insured 2/14 at 100.00 AAA 1,496,040 445 5.000%, 2/01/20 - FGIC Insured 2/14 at 100.00 AAA 474,499 465 5.000%, 2/01/21 -FGIC Insured 2/14 at 100.00 AAA 493,323 2,130 Santa Rosa, Sonoma County, California, Wastewater Revenue 9/14 at 100.00 AAA 2,303,212 Bonds, Series 2004B, 5.000%, 9/01/18 - FGIC Insured 2,500 West Basin Municipal Water District, California, Revenue 8/13 at 100.00 AAA 2,589,425 Certificates of Participation, Series 2003A, 5.000%, 8/01/30 - MBIA Insured 4,500 Westlands Water District, California, Revenue Certificates 3/15 at 100.00 AAA 4,685,220 of Participation, Series 2005A, 5.000%, 9/01/30 - MBIA Insured 29 Nuveen Insured California Premium Income Municipal Fund 2, Inc. (NCL) (continued) Portfolio of INVESTMENTS February 28, 2005 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER (continued) Yorba Linda Water District, California, Certificates of Participation, Highland Reservoir Renovation, Series 2003: $ 2,010 5.000%, 10/01/28 - FGIC Insured 10/13 at 100.00 AAA $ 2,097,614 2,530 5.000%, 10/01/33 - FGIC Insured 10/13 at 100.00 AAA ------------------------------------------------------------------------------------------------------------------------------------ $ 278,035 Total Long-Term Investments (cost $268,891,940) - 148.2% 285,835,435 =============----------------------------------------------------------------------------------------------------------------------- SHORT-TERM INVESTMENTS - 0.3% (0.2% OF TOTAL INVESTMENTS) 600 California, Economic Recovery Revenue Bonds, Variable Rate A-1+ 600,000 Demand Obligations, Series 2004C-6, 1.800%, 7/01/23+ ------------------------------------------------------------------------------------------------------------------------------------ $ 600 Total Short-Term Investments (cost $600,000) 600,000 =============----------------------------------------------------------------------------------------------------------------------- Total Investments (cost $269,491,940) - 148.5% 286,435,435 -------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 0.7% 1,500,752 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (49.2)% (95,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 192,936,187 ====================================================================================================================
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. (1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. * 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. (WI) Security purchased on a when-issued basis. + 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 in effect at the end of the reporting period. This rate changes periodically based on market conditions or a specified market index. See accompanying notes to financial statements. 30 Nuveen California Premium Income Municipal Fund (NCU) Portfolio of INVESTMENTS February 28, 2005 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 6.0% (4.0% OF TOTAL INVESTMENTS) $ 1,500 California County Tobacco Securitization Agency, Tobacco 6/12 at 100.00 Baa3 $ 1,484,370 Settlement Asset-Backed Bonds, Alameda County Tobacco Asset Securitization Corporation, Series 2002, 5.750%, 6/01/29 3,670 California Statewide Financing Authority, Tobacco Settlement 5/12 at 100.00 Baa3 3,624,309 Asset-Backed Bonds, Pooled Tobacco Securitization Program, Series 2002A, 5.625%, 5/01/29 ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 1.9% (1.3% OF TOTAL INVESTMENTS) 1,500 University of California, Revenue Bonds, Multi-Purpose 5/13 at 100.00 AAA 1,636,590 Projects, Series 2003A, 5.125%, 5/15/17 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ HEALTHCARE - 21.9% (14.7% OF TOTAL INVESTMENTS) 1,500 California Health Facilities Financing Authority, Revenue 12/09 at 101.00 A3 1,625,775 Bonds, Cedars-Sinai Medical Center, Series 1999A, 6.125%, 12/01/30 5,150 California Health Facilities Financing Authority, Hospital 5/05 at 100.00 BB+ 5,056,064 Revenue Bonds, Downey Community Hospital, Series 1993, 5.750%, 5/15/15 1,500 California Infrastructure Economic Development Bank, 8/11 at 102.00 A 1,588,020 Revenue Bonds, Kaiser Hospital Assistance LLC, Series 2001A, 5.550%, 8/01/31 260 California Statewide Community Development Authority, 7/15 at 100.00 BBB+ 267,041 Revenue Bonds, Daughters of Charity Health System, Series 2005A, 5.250%, 7/01/35 (WI, settling 3/18/05) 8,100 California Statewide Community Development Authority, No Opt. Call AAA 8,816,121 Revenue Refunding Bonds, Sherman Oaks Health System, Series 1998A, 5.000%, 8/01/22 - AMBAC Insured 1,370 Loma Linda, California, Hospital Revenue Bonds, Loma Linda 6/05 at 101.00 BB+ 1,391,536 University Medical Center, Series 1993A, 6.000%, 12/01/06 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 1.9% (1.3% OF TOTAL INVESTMENTS) 1,600 California Statewide Community Development Authority, 7/08 at 101.00 BBB 1,666,768 Revenue Refunding Bonds, Irvine Apartment Communities Development, Series 1998A, 5.250%, 5/15/25 (Mandatory put 5/15/13) ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 0.8% (0.6% OF TOTAL INVESTMENTS) 570 California Housing Finance Agency, Single Family Mortgage 2/07 at 102.00 AAA 595,445 Bonds II, Series 1997A-1, 6.000%, 8/01/20 (Alternative Minimum Tax) - MBIA Insured 60 California Rural Home Mortgage Finance Authority, No Opt. Call AAA 61,116 Mortgage-Backed Securities Program Single Family Mortgage Revenue Bonds, Series 1996C, 7.500%, 8/01/27 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 27.1% (18.2% OF TOTAL INVESTMENTS) 4,000 California, General Obligation Veterans Welfare Bonds, 6/05 at 100.00 A 4,004,000 Series 1999BR, 5.300%, 12/01/29 (Alternative Minimum Tax) California, General Obligation Bonds, Series 2003: 1,000 5.250%, 11/01/19 - RAAI Insured 11/13 at 100.00 AA 1,094,640 1,055 5.250%, 2/01/21 8/13 at 100.00 A 1,139,569 1,500 5.000%, 2/01/31 - MBIA Insured 2/13 at 100.00 AAA 1,549,980 California, General Obligation Bonds, Series 2004: 1,750 5.000%, 4/01/22 4/14 at 100.00 A 1,840,633 1,750 5.000%, 2/01/23 2/14 at 100.00 A 1,831,358 1,400 5.200%, 4/01/26 4/14 at 100.00 A 1,487,108 1,000 Fremont Unified School District, Alameda County, California, 8/12 at 101.00 AAA 1,063,830 General Obligation Bonds, Series 2002A, 5.000%, 8/01/21 - FGIC Insured 2,250 Los Angeles Unified School District, California, General 7/13 at 100.00 AAA 2,384,707 Obligation Bonds, Series 2003A, 5.000%, 7/01/22 - FSA Insured 6,000 North Orange County Community College District, California, No Opt. Call AAA 1,924,680 General Obligation Bonds, Series 2003B, 0.000%, 8/01/27 - FGIC Insured 31 Nuveen California Premium Income Municipal Fund (NCU) (continued) Portfolio of INVESTMENTS February 28, 2005 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL (continued) $ 3,000 Pomona Unified School District, Los Angeles County, 8/11 at 103.00 AAA $ 3,547,830 California, General Obligation Refunding Bonds, Series 1997A, 6.150%, 8/01/15 - MBIA Insured 1,200 Riverside Community College District, California, General 8/14 at 100.00 AAA 1,311,360 Obligation Bonds, Series 2004A, 5.250%, 8/01/22 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 45.0% (30.2% OF TOTAL INVESTMENTS) 1,000 Bell Community Redevelopment Agency, California, 10/13 at 100.00 AA 1,074,960 Tax Allocation Bonds, Bell Project Area, Series 2003, 5.625%, 10/01/33 - RAAI Insured 985 Beverly Hills Public Financing Authority, California, Lease 6/13 at 100.00 Aaa 1,084,416 Revenue Refunding Bonds, Series 2003A, 5.250%, 6/01/15 - MBIA Insured California Infrastructure Economic Development Bank, Revenue Bonds, North County Center for Self-Sufficiency Corporation, Series 2004: 1,695 5.000%, 12/01/22 - AMBAC Insured 12/13 at 100.00 AAA 1,790,225 1,865 5.000%, 12/01/24 - AMBAC Insured 12/13 at 100.00 AAA 1,957,243 California, Economic Recovery Revenue Bonds, Series 2004A: 1,720 5.000%, 7/01/15 7/14 at 100.00 AA- 1,878,825 1,000 5.000%, 7/01/16 7/11 at 100.00 AA- 1,078,410 5,920 California State Public Works Board, Lease Revenue Bonds, 11/09 at 101.00 AAA 6,560,011 Department of Veterans Affairs, Southern California Veterans Home - Chula Vista Facility, Series 1999A, 5.600%, 11/01/19 - AMBAC Insured Golden State Tobacco Securitization Corporation, California, Enhanced Tobacco Settlement Asset-Backed Bonds, Series 2003B: 1,000 5.500%, 6/01/33 6/13 at 100.00 A- 1,077,920 1,000 5.625%, 6/01/33 6/13 at 100.00 A- 1,086,510 3,500 Livermore Redevelopment Agency, California, Tax Allocation 8/11 at 100.00 AAA 3,623,235 Revenue Bonds, Livermore Redevelopment Project Area, Series 2001A, 5.000%, 8/01/26 - MBIA Insured 1,745 Los Angeles Community Redevelopment Agency, California, 6/05 at 100.00 BBB- 1,751,928 Tax Allocation Multifamily Housing Bonds, Grand Central Square/Bunker Hill Project, Series 1993A, 5.750%, 12/01/13 (Alternative Minimum Tax) 2,000 Los Angeles County Metropolitan Transportation Authority, 7/13 at 100.00 AAA 2,147,160 California, Proposition A First Tier Senior Sales Tax Revenue Bonds, Series 2003B, 5.000%, 7/01/19 - MBIA Insured 2,000 Oakland Redevelopment Agency, California, Subordinate 3/13 at 100.00 AAA 2,230,220 Lien Tax Allocation Bonds, Central District Redevelopment Project, Series 2003, 5.500%, 9/01/15 - FGIC Insured 1,000 Poway, California, Community Facilities District 88-1, 8/08 at 102.00 N/R 1,112,800 Special Tax Refunding Bonds, Parkway Business Centre, Series 1998, 6.500%, 8/15/09 3,000 Sacramento City Financing Authority, California, Lease No Opt. Call AA- 3,327,960 Revenue Refunding Bonds, Series 1993B, 5.400%, 11/01/20 1,500 Sacramento City Financing Authority, California, Lease No Opt. Call AAA 1,706,565 Revenue Refunding Bonds, Series 1993A, 5.400%, 11/01/20 - MBIA Insured San Marcos Public Facilities Authority, California, Revenue Refunding Bonds, Series 1998: 1,500 5.800%, 9/01/18 9/08 at 101.00 Baa3 1,598,325 1,000 5.800%, 9/01/27 9/08 at 101.00 Baa3 1,049,150 2,050 Santa Barbara County, California, Certificates of Participation, 12/11 at 102.00 AAA 2,245,386 Series 2001, 5.250%, 12/01/19 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 8.3% (5.6% OF TOTAL INVESTMENTS) 3,000 California Infrastructure Economic Development Bank, 7/13 at 100.00 AAA 3,179,610 First Lien Revenue Bonds, San Francisco Bay Area Toll Bridge, Series 2003A, 5.000%, 7/01/22 - FSA Insured 2,000 Foothill/Eastern Transportation Corridor Agency, California, 1/10 at 100.00 BBB- 1,852,680 Toll Road Revenue Bonds, Series 1995A, 5.000%, 1/01/35 2,000 San Francisco Airports Commission, California, Revenue 5/06 at 102.00 AAA 2,094,340 Bonds, San Francisco International Airport, Second Series Issue 10A, 5.700%, 5/01/26 (Alternative Minimum Tax) - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED *** - 6.2% (4.2% OF TOTAL INVESTMENTS) 2,750 Puerto Rico, General Obligation and Public Improvement 7/10 at 100.00 AAA 3,093,833 Bonds, Series 2000, 5.750%, 7/01/21 (Pre-refunded to 7/01/10) - MBIA Insured 2,000 Vista, California, Mobile Home Park Revenue Bonds, Vista 3/24 at 100.00 N/R*** 2,229,740 Manor Mobile Home Park Project, Series 1999A, 5.750%, 3/15/29 (Pre-refunded to 3/15/24) 32 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 11.4% (7.6% OF TOTAL INVESTMENTS) California Department of Water Resources, Power Supply Revenue Bonds, Series 2002A: $ 400 5.375%, 5/01/17 - XLCA Insured 5/12 at 101.00 AAA $ 444,268 2,250 5.125%, 5/01/18 5/12 at 101.00 A2 2,416,770 275 Los Angeles Department of Water and Power, California, 7/13 at 100.00 AAA 292,823 Power System Revenue Bonds, Series 2003A-2, 5.000%, 7/01/21 - MBIA Insured 1,500 Merced Irrigation District, California, Revenue Refunding 9/05 at 102.00 Baa3 1,542,360 Bonds, Electric System Project, Series 2001, 6.500%, 9/01/22 4,580 Sacramento Municipal Utility District, California, Electric 8/12 at 100.00 AAA 5,026,733 Revenue Refunding Bonds, Series 2002Q, 5.250%, 8/15/20 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 17.1% (11.5% OF TOTAL INVESTMENTS) 1,125 Burbank, California, Wastewater System Revenue Bonds, 6/14 at 100.00 AAA 1,187,629 Series 2004A, 5.000%, 6/01/23 - AMBAC Insured 1,095 California Statewide Community Development Authority, 10/13 at 100.00 AAA 1,180,848 Water and Wastewater Revenue Bonds, Pooled Financing Program, Series 2003A, 5.250%, 10/01/23 - FSA Insured 5,000 Culver City, California, Wastewater Facilities Revenue 9/09 at 102.00 AAA 5,567,250 Refunding Bonds, Series 1999A, 5.700%, 9/01/29 - FGIC Insured 3,495 Orange County Sanitation District, California, Certificates 8/13 at 100.00 AAA 3,785,260 of Participation, Series 2003, 5.250%, 2/01/21 - FGIC Insured 1,000 Sacramento County Water Financing Authority, California, 6/13 at 100.00 AAA 1,059,720 Revenue Bonds, Agency Zones 40-41 System Projects, Series 2003, 5.000%, 6/01/22 - AMBAC Insured 1,795 Woodbridge Irrigation District, California, Certificates 7/13 at 100.00 BBB+ 1,872,254 of Participation, Water Systems Project, Series 2003, 5.500%, 7/01/33 ------------------------------------------------------------------------------------------------------------------------------------ $ 122,430 Total Long-Term Investments (cost $119,082,726) - 147.6% 126,200,217 =============----------------------------------------------------------------------------------------------------------------------- SHORT-TERM INVESTMENTS - 1.2% (0.8% OF TOTAL INVESTMENTS) 1,000 Pittsburg Redevelopment Agency, California, Tax Allocation A-1+ 1,000,000 Bonds, Los Medanos Community Development Project, Variable Rate Demand Obligations, Series 2004A, 1.760%, 9/01/35 - AMBAC Insured+ ------------------------------------------------------------------------------------------------------------------------------------ $ 1,000 Total Short-Term Investments (cost $1,000,000) 1,000,000 =============----------------------------------------------------------------------------------------------------------------------- Total Investments (cost $120,082,726) - 148.8% 127,200,217 -------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 1.5% 1,299,178 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (50.3)% (43,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 85,499,395 ====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. * 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. Such securities are normally considered to be equivalent to AAA rated securities. N/R Investment is not rated. (WI) Security purchased on a when-issued basis. + 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 in effect at the end of the reporting period. This rate changes periodically based on market conditions or a specified market index. See accompanying notes to financial statements. 33 Nuveen California Dividend Advantage Municipal Fund (NAC) Portfolio of INVESTMENTS February 28, 2005 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 5.6% (3.8% OF TOTAL INVESTMENTS) $ 5,000 California Statewide Community Development Authority, 11/09 at 102.00 N/R $ 5,230,050 Certificates of Participation, Pride Industries and Pride One Inc., Series 1999, 7.250%, 11/01/29 5,200 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 BBB 5,303,792 Tobacco Settlement Asset-Backed Bonds, Series 2003A-1, 6.250%, 6/01/33 Northern California Tobacco Securitization Authority, Tobacco Settlement Asset-Backed Bonds, Series 2001A: 2,500 5.250%, 6/01/31 6/11 at 100.00 BBB 2,258,000 4,500 5.375%, 6/01/41 6/11 at 100.00 BBB 4,101,120 3,635 Southern California Tobacco Securitization Authority, 6/12 at 100.00 BBB 3,690,325 Tobacco Settlement Asset-Backed Bonds, Senior Series 2001A, 5.250%, 6/01/27 ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 10.4% (7.1% OF TOTAL INVESTMENTS) 615 California Statewide Community Development Authority, 10/13 at 100.00 N/R 607,122 Revenue Bonds, Notre Dame de Namur University, Series 2003, 6.500%, 10/01/23 3,000 Long Beach Bond Financing Authority, California, Lease 11/11 at 100.00 AAA 3,367,140 Revenue Refunding Bonds, Long Beach Aquarium of the South Pacific, Series 2001, 5.500%, 11/01/17 - AMBAC Insured 700 University of California, Certificates of Participation, 1/10 at 101.00 Aa2 738,367 San Diego and Sacramento Campus Projects, Series 2002A, 5.250%, 1/01/22 6,000 University of California, Revenue Bonds, Multiple Purpose 9/08 at 101.00 AA 6,455,400 Projects, Series 2000K, 5.000%, 9/01/12 University of California, Revenue Bonds, Multi-Purpose Projects, Series 2002O: 10,770 5.000%, 9/01/20 - FGIC Insured 9/10 at 101.00 AAA 11,499,883 11,305 5.000%, 9/01/21 - FGIC Insured 9/10 at 101.00 AAA 12,024,789 3,500 University of California, Revenue Bonds, Multi-Purpose 5/13 at 100.00 AAA 3,818,710 Projects, Series 2003A, 5.125%, 5/15/17 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ HEALTHCARE - 11.4% (7.8% OF TOTAL INVESTMENTS) 15,000 California Health Facilities Financing Authority, Revenue Bonds, 12/09 at 101.00 A3 16,257,750 Cedars-Sinai Medical Center, Series 1999A, 6.125%, 12/01/30 2,160 California Health Facilities Financing Authority, Health 3/13 at 100.00 A 2,276,791 Facility Revenue Bonds, Adventist Health System/West, Series 2003A, 5.000%, 3/01/15 8,000 Central California Joint Powers Health Finance Authority, 2/10 at 101.00 Baa2 8,331,040 Certificates of Participation, Community Hospitals of Central California Obligated Group, Series 2000, 6.000%, 2/01/30 10,500 Duarte, California, Certificates of Participation, City of Hope 4/09 at 101.00 BBB 10,328,010 National Medical Center, Series 1999A, 5.250%, 4/01/31 2,155 Upland, California, Certificates of Participation, San Antonio 7/05 at 101.00 A- 2,178,662 Community Hospital, Series 1993, 5.250%, 1/01/08 2,500 Whittier, California, Health Facility Revenue Bonds, 6/12 at 101.00 A 2,667,550 Presbyterian Intercommunity Hospital, Series 2002, 5.600%, 6/01/22 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 7.2% (4.9% OF TOTAL INVESTMENTS) 7,250 California Statewide Community Development Authority, 7/08 at 101.00 BBB 7,596,768 Revenue Refunding Bonds, Irvine Apartment Communities Development, Series 1998A, 4.900%, 5/15/25 (Mandatory put 5/15/08) 5,235 California Statewide Community Development Authority, 8/12 at 105.00 Aaa 5,832,732 GNMA Collateralized Housing Revenue Refunding Bonds, Crowne Pointe Project, Series 2002F, 6.750%, 8/20/37 34 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY (continued) $ 5,000 Contra Costa County, California, Multifamily Housing Revenue 6/09 at 102.00 N/R $ 5,036,000 Bonds, Delta View Apartments Project, Series 1999C, 6.750%, 12/01/30 (Alternative Minimum Tax) 7,500 San Bernardino County Housing Authority, California, No Opt. Call BBB+ 7,984,800 Multifamily Housing Revenue Refunding Bonds, Equity Residential Properties/Redlands Lawn and Tennis Apartments, Series 1999A, 5.200%, 6/15/29 (Mandatory put 6/15/09) ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 2.4% (1.6% OF TOTAL INVESTMENTS) 8,500 Riverside County Public Financing Authority, California, 5/09 at 101.00 BBB- 8,822,150 Certificates of Participation, Air Force Village West, Series 1999, 5.800%, 5/15/29 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 22.2% (15.3% OF TOTAL INVESTMENTS) California, General Obligation Refunding Bonds, Series 2002: 8,000 5.000%, 2/01/12 No Opt. Call A 8,714,160 4,435 6.000%, 4/01/16 - AMBAC Insured No Opt. Call AAA 5,300,091 California, General Obligation Bonds, Series 2003: 2,000 5.250%, 11/01/19 - RAAI Insured 11/13 at 100.00 AA 2,189,280 5,200 5.250%, 2/01/20 8/13 at 100.00 A 5,634,148 California, General Obligation Bonds, Series 2004: 5,000 5.125%, 4/01/23 4/14 at 100.00 A 5,305,600 4,150 5.125%, 4/01/25 4/14 at 100.00 A 4,378,043 18,500 Los Angeles Unified School District, California, General 7/09 at 101.00 AAA 19,975,190 Obligation Bonds, Series 1999C, 5.250%, 7/01/24 - MBIA Insured 10,845 Los Angeles Unified School District, California, General 7/12 at 100.00 AAA 11,644,819 Obligation Bonds, Series 2002E, 5.000%, 7/01/19 - MBIA Insured 3,335 Moreno Valley Unified School District, Riverside County, 8/14 at 100.00 AAA 3,655,427 California, General Obligation Bonds, Series 2004A, 5.250%, 8/01/21 - FSA Insured 1,750 Oakland Unified School District, Alameda County, California, 8/08 at 101.00 AAA 1,863,838 General Obligation Bonds, Series 2001, 5.125%, 8/01/21 - FSA Insured 5,000 San Diego Unified School District, San Diego County, California, 7/13 at 101.00 AAA 5,598,000 General Obligation Bonds, Series 2003E, 5.250%, 7/01/20 - FSA Insured 2,560 Southwestern Community College District, San Diego County, 8/14 at 100.00 AAA 2,714,906 California, General Obligation Bonds, Series 2004, 5.000%, 8/01/23 - FGIC Insured 1,300 Ventura County Community College District, California, 8/12 at 101.00 AAA 1,420,042 General Obligation Bonds, Series 2002A, 5.000%, 8/01/15 - MBIA Insured 3,605 West Contra Costa Unified School District, Contra Costa 8/11 at 101.00 AAA 3,834,494 County, California, General Obligation Bonds, Series 2003B, 5.000%, 8/01/21 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 39.6% (27.2% OF TOTAL INVESTMENTS) Beaumont Financing Authority, California, Local Agency Revenue Bonds, Series 2004D: 1,000 5.500%, 9/01/24 9/14 at 102.00 N/R 1,002,950 615 5.800%, 9/01/35 9/14 at 102.00 N/R 617,817 Brentwood Infrastructure Financing Authority, Contra Costa County, California, Capital Improvement Revenue Bonds, Series 2001: 1,110 5.375%, 11/01/18 - FSA Insured 11/11 at 100.00 AAA 1,236,018 1,165 5.375%, 11/01/19 - FSA Insured 11/11 at 100.00 AAA 1,296,610 1,990 Brentwood Infrastructure Financing Authority, California, 9/12 at 100.00 AAA 2,096,385 Infrastructure Revenue Refunding Bonds, Series 2002A, 5.125%, 9/02/24 - FSA Insured 7,400 California, Economic Recovery Revenue Bonds, 7/14 at 100.00 AA- 8,083,316 Series 2004A, 5.000%, 7/01/15 2,000 Capistrano Unified School District, Orange County, California, 9/13 at 100.00 N/R 2,116,620 Special Tax Bonds, Community Facilities District 90-2, Talega, Series 2003, 6.000%, 9/01/33 3,490 Fontana, California, Senior Special Tax Refunding Bonds, 9/08 at 102.00 AAA 3,804,554 Heritage Village Community Facilities District 2, Series 1998A, 5.250%, 9/01/17 - MBIA Insured 35 Nuveen California Dividend Advantage Municipal Fund (NAC) (continued) Portfolio of INVESTMENTS February 28, 2005 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED (continued) $ 1,125 Fontana, California, Special Tax Bonds, Sierra Community 9/14 at 100.00 N/R $ 1,145,790 Facilities District 22, Series 2004, 6.000%, 9/01/34 3,980 Garden Grove, California, Certificates of Participation, 3/12 at 101.00 AAA 4,414,616 Financing Project, Series 2002A, 5.500%, 3/01/22 - AMBAC Insured 4,500 Inglewood Redevelopment Agency, California, Tax Allocation No Opt. Call AAA 5,046,615 Refunding Bonds, Merged Area Redevelopment Project, Series 1998A, 5.250%, 5/01/23 - AMBAC Insured 2,000 Lee Lake Water District, Riverside County, California, 9/13 at 102.00 N/R 2,186,120 Special Tax Bonds, Community Facilities District 1 of Sycamore Creek, Series 2003, 6.500%, 9/01/24 2,200 Lincoln, California, Special Tax Bonds, Lincoln Crossing 9/13 at 102.00 N/R 2,347,554 Community Facilities District 03-1, Series 2003A, 6.500%, 9/01/25 1,500 Lincoln, California, Special Tax Bonds, Lincoln Crossing 9/13 at 102.00 N/R 1,541,760 Community Facilities District 03-1, Series 2004, 6.000%, 9/01/34 5,000 Los Angeles County Metropolitan Transportation Authority, 7/08 at 101.00 AAA 5,229,850 California, Proposition C Second Senior Lien Sales Tax Revenue Refunding Bonds, Series 1998A, 5.000%, 7/01/23 - AMBAC Insured 10,000 Los Angeles County Public Works Financing Authority, 10/07 at 101.00 AA 10,570,700 California, Revenue Bonds, Regional Park and Open Space District, Series 1997A, 5.000%, 10/01/16 1,530 Moreno Valley Unified School District, Riverside County, 3/14 at 100.00 AAA 1,607,540 California, Certificates of Participation, Series 2005, 5.000%, 3/01/24 - FSA Insured 9,200 Norco Redevelopment Agency, California, Tax Allocation 3/11 at 102.00 AAA 9,776,472 Refunding Bonds, Project Area 1, Series 2001, 5.000%, 3/01/19 - MBIA Insured 5,545 Oakland Joint Power Financing Authority, California, No Opt. Call AAA 6,339,709 Lease Revenue Refunding Bonds, Oakland Convention Centers, Series 2001, 5.500%, 10/01/14 - AMBAC Insured 3,290 Oakland Redevelopment Agency, California, Subordinate 3/13 at 100.00 AAA 3,662,231 Lien Tax Allocation Bonds, Central District Redevelopment Project, Series 2003, 5.500%, 9/01/16 - FGIC Insured 4,000 Orange County Local Transportation Authority, California, No Opt. Call AAA 4,353,040 Limited Sales Tax Revenue Refunding Bonds, Measure M, Series 1997A, 5.700%, 2/15/08 - AMBAC Insured 5,600 Palm Springs Financing Authority, California, Lease Revenue 11/11 at 101.00 AAA 5,892,152 Refunding Bonds, Convention Center Project, Series 2001A, 5.000%, 11/01/22 - MBIA Insured 1,000 Palmdale Community Redevelopment Agency, California, 12/14 at 100.00 AAA 1,054,020 Tax Allocation Bonds, Merged Redevelopment Project Areas, Series 2004, 5.000%, 12/01/24 - AMBAC Insured 8,100 Poway Redevelopment Agency, California, Tax Allocation 12/10 at 102.00 AAA 9,156,564 Refunding Bonds, Paguay Redevelopment Project, Series 2000, 5.750%, 6/15/33 - MBIA Insured 1,055 Poway Redevelopment Agency, California, Tax Allocation 12/11 at 101.00 AAA 1,179,163 Bonds, Paguay Redevelopment Project, Series 2001, 5.375%, 12/15/16 - AMBAC Insured 1,860 Riverside Redevelopment Agency, California, Tax Allocation 8/13 at 100.00 AAA 2,008,967 Refunding Bonds, Merged Project Areas, Series 2003, 5.250%, 8/01/22 - MBIA Insured 5,795 Riverside County Public Financing Authority, California, No Opt. Call N/R 5,968,386 Junior Lien Reassessment Revenue Bonds, Rancho Villages Project, Series 1999B, 6.000%, 9/02/07 1,725 Rohnert Park Finance Authority, California, Senior Lien 9/13 at 100.00 BBB 1,745,252 Revenue Bonds, Rancho Feliz Mobile Home Park, Series 2003A, 5.750%, 9/15/38 1,120 Rohnert Park Finance Authority, California, Subordinate Lien 9/13 at 100.00 N/R 1,141,874 Revenue Bonds, Rancho Feliz Mobile Home Park, Series 2003B, 6.625%, 9/15/38 2,500 Sacramento City Financing Authority, California, Lease No Opt. Call AAA 2,877,650 Revenue Refunding Bonds, Series 1993A, 5.400%, 11/01/20 - AMBAC Insured 1,150 Sacramento, California, Special Tax Bonds, North Natomas 9/14 at 100.00 N/R 1,192,561 Community Facilities District 4, Series 2003C, 6.000%, 9/01/33 24,060 San Jose Redevelopment Agency, California, Tax Allocation 8/08 at 102.00 A 24,872,506 Bonds, Merged Area Redevelopment Project, Series 1998, 5.250%, 8/01/29 36 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED (continued) $ 2,695 San Jose Financing Authority, California, Lease Revenue 6/12 at 100.00 AAA $ 2,951,968 Refunding Bonds, Civic Center Project, Series 2002B, 5.250%, 6/01/19 - AMBAC Insured 1,595 San Marcos Public Facilities Authority, California, Special 9/09 at 102.00 N/R 1,641,207 Tax Bonds, Community Facilities District 99-1, Series 2003B, 6.000%, 9/01/24 2,810 West Patterson Financing Authority, California, Special Tax 9/13 at 103.00 N/R 3,057,533 Bonds, Community Facilities District 01-1, Series 2003B, 7.000%, 9/01/38 1,350 West Patterson Financing Authority, California, Special Tax 9/13 at 103.00 N/R 1,377,365 Bonds, Community Facilities District 2001-1, Series 2004A, 6.125%, 9/01/39 2,000 West Patterson Financing Authority, California, Special Tax 9/13 at 102.00 N/R 2,016,260 Bonds, Community Facilities District 01-1, Series 2004B, 6.000%, 9/01/39 ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 19.8% (13.6% OF TOTAL INVESTMENTS) 8,150 Foothill/Eastern Transportation Corridor Agency, California, 1/10 at 101.00 BBB- 8,299,879 Toll Road Revenue Refunding Bonds, Series 1999, 5.750%, 1/15/40 8,515 Los Angeles Harbors Department, California, Revenue 8/11 at 100.00 AAA 9,320,434 Refunding Bonds, Series 2001B, 5.500%, 8/01/18 (Alternative Minimum Tax) - AMBAC Insured 23,000 Port of Oakland, California, Revenue Bonds, Series 2000K, 5/10 at 100.00 AAA 25,081,960 5.750%, 11/01/29 (Alternative Minimum Tax) - FGIC Insured 5,000 San Francisco Airports Commission, California, Revenue 5/06 at 101.00 AAA 5,182,800 Bonds, San Francisco International Airport, Second Series Issue 13B, 5.625%, 5/01/21 (Alternative Minimum Tax) - MBIA Insured 23,275 San Francisco Airports Commission, California, Revenue 5/10 at 101.00 AAA 25,190,067 Bonds, San Francisco International Airport, Second Series 2000, Issue 24A, 5.750%, 5/01/30 (Alternative Minimum Tax) - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED *** - 4.3% (2.9% OF TOTAL INVESTMENTS) 8,400 California Health Facilities Financing Authority, Revenue 10/08 at 101.00 AAA 9,103,752 Bonds, Kaiser Permanente System, Series 1998B, 5.250%, 10/01/14 (Optional put 10/01/08) 1,000 Los Angeles Community College District, Los Angeles 8/11 at 100.00 AAA 1,035,210 County, California, General Obligation Bonds, Series 2001A, 5.000%, 6/01/26 (Pre-refunded to 8/01/11) - MBIA Insured 5,000 Puerto Rico, General Obligation and Public Improvement 7/10 at 100.00 AAA 5,625,150 Bonds, Series 2000, 5.750%, 7/01/16 (Pre-refunded to 7/01/10) - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 11.5% (7.9% OF TOTAL INVESTMENTS) California Department of Water Resources, Power Supply Revenue Bonds, Series 2002A: 2,500 5.375%, 5/01/17 - XLCA Insured 5/12 at 101.00 AAA 2,776,675 9,750 5.125%, 5/01/18 5/12 at 101.00 A2 10,472,670 3,630 Imperial Irrigation District, California, Certificates of 11/13 at 100.00 AAA 3,914,084 Participation, Electric System Revenue Bonds, Series 2003, 5.250%, 11/01/23 - FSA Insured 7,000 Los Angeles Department of Water and Power, California, 7/11 at 100.00 AAA 7,612,080 Power System Revenue Bonds, Series 2001A-1, 5.250%, 7/01/21 - FSA Insured 8,370 Los Angeles Department of Water and Power, California, 7/11 at 100.00 AAA 9,277,810 Power System Revenue Refunding Bonds, Series 2001A-2, 5.375%, 7/01/19 - MBIA Insured 1,200 Los Angeles Department of Water and Power, California, 7/13 at 100.00 AAA 1,277,772 Power System Revenue Bonds, Series 2003A-2, 5.000%, 7/01/21 - MBIA Insured 7,000 Merced Irrigation District, California, Revenue Refunding 9/05 at 102.00 Baa3 7,201,880 Bonds, Electric System Project, Series 2001, 6.750%, 9/01/31 ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 11.2% (7.7% OF TOTAL INVESTMENTS) 11,000 California Department of Water Resources, Water System 12/11 at 100.00 AAA 11,985,930 Revenue Bonds, Central Valley Project, Series 2001W, 5.250%, 12/01/22 - FSA Insured 14,000 Orange County Water District, California, Revenue 8/09 at 101.00 AA+ 14,973,980 Certificates of Participation, Series 1999A, 5.375%, 8/15/29 37 Nuveen California Dividend Advantage Municipal Fund (NAC) (continued) Portfolio of INVESTMENTS February 28, 2005 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER (continued) $ 8,250 Pico Rivera Water Authority, California, Revenue Bonds, 12/11 at 102.00 N/R $ 8,849,445 Series 2001A, 6.250%, 12/01/32 5,115 San Francisco City and County Public Utilities Commission, 11/12 at 100.00 AAA 5,529,211 California, Water Revenue Bonds, Series 2002A, 5.000%, 11/01/18 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ $ 503,415 Total Long-Term Investments (cost $504,946,087) - 145.6% 537,955,473 =============----------------------------------------------------------------------------------------------------------------------- SHORT-TERM INVESTMENTS - 0.3% (0.2% OF TOTAL INVESTMENTS) 1,000 Pittsburg Redevelopment Agency, California, Tax Allocation A-1+ 1,000,000 Bonds, Los Medanos Community Development Project, Variable Rate Demand Obligations, Series 2004A, 1.760%, 9/01/35 - AMBAC Insured+ ------------------------------------------------------------------------------------------------------------------------------------ $ 1,000 Total Short-Term Investments (cost $1,000,000) 1,000,000 =============----------------------------------------------------------------------------------------------------------------------- Total Investments (cost $505,946,087) - 145.9% 538,955,473 -------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 1.5% 5,460,733 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (47.4)% (175,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 369,416,206 ====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. * 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. N/R Investment is not rated. + 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 in effect at the end of the reporting period. This rate changes periodically based on market conditions or a specified market index. See accompanying notes to financial statements. 38 Nuveen California Dividend Advantage Municipal Fund 2 (NVX) Portfolio of INVESTMENTS February 28, 2005 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 5.8% (3.9% OF TOTAL INVESTMENTS) $ 4,625 California County Tobacco Securitization Agency, Tobacco 6/12 at 100.00 Baa3 $ 4,423,581 Settlement Asset-Backed Bonds, Stanislaus County Tobacco Funding Corporation, Series 2002A, 5.500%, 6/01/33 3,200 Golden State Tobacco Securitization Corporation, 6/13 at 100.00 BBB 3,263,872 California, Tobacco Settlement Asset-Backed Bonds, Series 2003A-1, 6.250%, 6/01/33 3,000 Northern California Tobacco Securitization Authority, Tobacco 6/11 at 100.00 BBB 2,734,080 Settlement Asset-Backed Bonds, Series 2001A, 5.375%, 6/01/41 2,800 Southern California Tobacco Securitization Authority, Tobacco 6/12 at 100.00 BBB 2,608,732 Settlement Asset-Backed Bonds, Senior Series 2001A, 5.500%, 6/01/36 ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 15.0% (10.2% OF TOTAL INVESTMENTS) 2,000 California Educational Facilities Authority, Revenue Bonds, 6/11 at 101.00 AAA 2,123,020 Stanford University, Series 2001Q, 5.250%, 12/01/32 6,375 California Educational Facilities Authority, Student Loan 3/08 at 102.00 Aaa 6,706,372 Revenue Bonds, Cal Loan Program, Series 2001A, 5.400%, 3/01/21 (Alternative Minimum Tax) - MBIA Insured California State Public Works Board, Lease Revenue Bonds, University of California System, Series 2002A: 8,880 5.375%, 10/01/16 - FSA Insured 10/12 at 100.00 AAA 9,748,464 10,570 5.375%, 10/01/18 - FSA Insured 10/12 at 100.00 AAA 11,567,385 620 California Statewide Community Development Authority, 10/13 at 100.00 N/R 612,058 Revenue Bonds, Notre Dame de Namur University, Series 2003, 6.500%, 10/01/23 3,000 Long Beach Bond Financing Authority, California, Lease 11/11 at 101.00 AAA 3,175,410 Revenue Refunding Bonds, Long Beach Aquarium of the South Pacific, Series 2001, 5.250%, 11/01/30 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ HEALTHCARE - 8.6% (5.8% OF TOTAL INVESTMENTS) 2,000 California Health Facilities Financing Authority, Revenue 4/12 at 100.00 BBB+ 2,127,280 Bonds, Casa Colina Inc., Series 2001, 6.000%, 4/01/22 500 California Infrastructure Economic Development Bank, 8/11 at 102.00 A 529,340 Revenue Bonds, Kaiser Hospital Assistance LLC, Series 2001A, 5.550%, 8/01/31 955 California State Public Works Board, Revenue Bonds, 11/14 at 100.00 AAA 1,008,556 University of California - Davis Medical Center, Series 2004II-A, 5.000%, 11/01/22 - MBIA Insured 190 California Statewide Community Development Authority, 7/15 at 100.00 BBB+ 195,145 Revenue Bonds, Daughters of Charity Health System, Series 2005A, 5.250%, 7/01/35 (WI, settling 3/18/05) 5,355 California Statewide Community Development Authority, No Opt. Call A 5,630,568 Revenue Bonds, Kaiser Permanente System, Series 2002E, 4.700%, 11/01/36 (Mandatory put 5/31/09) 2,185 California Statewide Community Development Authority, No Opt. Call A 2,486,071 Health Facility Revenue Refunding Bonds, Memorial Health Services, Series 2003A, 6.000%, 10/01/11 2,500 California Statewide Community Development Authority, 6/13 at 100.00 AAA 2,720,525 Hospital Revenue Bonds, Monterey Peninsula Hospital, Series 2003B, 5.250%, 6/01/18 - FSA Insured 3,000 Central California Joint Powers Health Finance Authority, 2/10 at 101.00 Baa2 3,124,140 Certificates of Participation, Community Hospitals of Central California Obligated Group, Series 2000, 6.000%, 2/01/30 1,500 Whittier, California, Health Facility Revenue Bonds, 6/12 at 101.00 A 1,600,530 Presbyterian Intercommunity Hospital, Series 2002, 5.600%, 6/01/22 39 Nuveen California Dividend Advantage Municipal Fund 2 (NVX) (continued) Portfolio of INVESTMENTS February 28, 2005 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 7.4% (5.0% OF TOTAL INVESTMENTS) $ 2,450 ABAG Finance Authority for Non-Profit Corporations, California, No Opt. Call Baa2 $ 2,660,700 Multifamily Housing Revenue Refunding Bonds, United Dominion/2000 Post Apartments, Series 2000B, 6.250%, 8/15/30 (Mandatory put 8/15/08) 3,750 California Statewide Community Development Authority, 7/08 at 101.00 BBB 3,929,363 Revenue Refunding Bonds, Irvine Apartment Communities Development, Series 1998A, 4.900%, 5/15/25 (Mandatory put 5/15/08) 5,962 California Statewide Community Development Authority, 6/11 at 102.00 AAA 6,237,087 Multifamily Housing Revenue Refunding Bonds, Claremont Village Apartments, Series 2001D, 5.500%, 6/01/31 (Alternative Minimum Tax) (Mandatory put 6/01/16) 3,490 California Statewide Community Development Authority, 8/12 at 105.00 Aaa 3,888,488 GNMA Collateralized Housing Revenue Refunding Bonds, Crowne Pointe Project, Series 2002F, 6.750%, 8/20/37 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 0.9% (0.6% OF TOTAL INVESTMENTS) 1,920 California Rural Home Mortgage Finance Authority, 6/11 at 102.00 AAA 1,988,064 Mortgage-Backed Securities Program Single Family Mortgage Revenue Bonds, Series 2001A, 5.650%, 12/01/31 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 0.7% (0.6% OF TOTAL INVESTMENTS) 1,550 California Health Facilities Financing Authority, Insured 1/13 at 100.00 A 1,620,091 Revenue Bonds, Northern California Retired Officers Community Corporation - Paradise Valley Estates, Series 2002, 5.125%, 1/01/22 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 29.1% (19.8% OF TOTAL INVESTMENTS) 5,000 California, General Obligation Refunding Bonds, No Opt. Call A 5,446,350 Series 2002, 5.000%, 2/01/12 7,225 California, General Obligation Veterans Welfare Bonds, 6/06 at 101.00 AAA 7,525,416 Series 2001BV, 5.600%, 12/01/32 - FSA Insured California, General Obligation Bonds, Series 2003: 3,000 5.250%, 2/01/20 8/13 at 100.00 A 3,250,470 1,400 5.250%, 2/01/21 8/13 at 100.00 A 1,512,224 1,350 California, General Obligation Bonds, Series 2004, 5.125%, 4/01/25 4/14 at 100.00 A 1,424,183 3,615 Colton Joint Unified School District, San Bernardino County, 8/12 at 102.00 AAA 4,043,920 California, General Obligation Bonds, Series 2002A, 5.500%, 8/01/22 - FGIC Insured Contra Costa County Community College District, California, General Obligation Bonds, Series 2002: 3,005 5.000%, 8/01/21 - FGIC Insured 8/12 at 100.00 AAA 3,196,298 3,300 5.000%, 8/01/22 - FGIC Insured 8/12 at 100.00 AAA 3,493,776 1,325 Golden West Schools Financing Authority, California, No Opt. Call AAA 1,618,779 Revenue Bonds, School District General Obligation Refunding Program, Series 1998A, 6.650%, 8/01/13 - MBIA Insured 8,330 Los Angeles Unified School District, California, General 7/10 at 100.00 AAA 8,954,250 Obligation Bonds, Series 2000D, 5.375%, 7/01/25 - FGIC Insured 10,840 Los Angeles Unified School District, California, General 7/12 at 100.00 AAA 11,639,450 Obligation Bonds, Series 2002E, 5.000%, 7/01/19 - MBIA Insured 1,250 Los Angeles Unified School District, California, General 7/13 at 100.00 AAA 1,366,513 Obligation Bonds, Series 2003A, 5.250%, 7/01/20 - FSA Insured 1,375 Lucia Mar Unified School District, San Luis Obispo County, 8/14 at 100.00 Aaa 1,507,110 California, General Obligation Bonds, Series 2004A, 5.250%, 8/01/21 - FGIC Insured 2,000 Puerto Rico, General Obligation and Public Improvement No Opt. Call AAA 2,350,220 Refunding Bonds, Series 2001A, 5.500%, 7/01/20 - MBIA Insured 4,050 Santa Rosa High School District, Sonoma County, California, 5/11 at 101.00 AAA 4,383,680 General Obligation Bonds, Series 2001, 5.300%, 5/01/26 - FGIC Insured 1,160 Saugus Union School District, Los Angeles County, California, 8/12 at 100.00 AAA 1,233,846 General Obligation Bonds, Series 2002A, 5.000%, 8/01/21 - FGIC Insured 2,710 Southwestern Community College District, San Diego County, 8/14 at 100.00 AAA 2,895,716 California, General Obligation Bonds, Series 2004, 5.000%, 8/01/21 - FGIC Insured 40 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 44.1% (30.1% OF TOTAL INVESTMENTS) $ 9,000 Anitoch Area Public Facilities Financing Agency, California, 8/11 at 100.00 AAA $ 9,657,900 Special Tax Bonds, Community Facilities District 1989-1, Series 2001, 5.250%, 8/01/25 - MBIA Insured Beaumont Financing Authority, California, Local Agency Revenue Bonds, Series 2004D: 650 5.500%, 9/01/24 9/14 at 102.00 N/R 651,918 385 5.800%, 9/01/35 9/14 at 102.00 N/R 386,763 4,500 California, Economic Recovery Revenue Bonds, 7/14 at 100.00 AA- 4,915,530 Series 2004A, 5.000%, 7/01/15 4,900 California State Public Works Board, Lease Revenue Bonds, 12/13 at 100.00 A- 5,467,028 Department of Corrections, Series 2003C, 5.500%, 6/01/16 1,200 Capistrano Unified School District, Orange County, California, 9/13 at 100.00 N/R 1,269,972 Special Tax Bonds, Community Facilities District 90-2, Talega, Series 2003, 6.000%, 9/01/33 4,000 Daly City Housing Development Finance Agency, California, 12/13 at 102.00 A- 4,160,720 Mobile Home Park Revenue Bonds, Franciscan Mobile Home Park Project, Series 2002A, 5.850%, 12/15/32 4,845 Encinitas Public Financing Authority, California, Lease 4/08 at 102.00 AAA 5,132,890 Revenue Bonds, Acquisition Project, Series 2001A, 5.250%, 4/01/31 - MBIA Insured 750 Fontana, California, Special Tax Bonds, Sierra Community 9/14 at 100.00 N/R 763,860 Facilities District 22, Series 2004, 6.000%, 9/01/34 4,000 Industry Urban Development Agency, California, Tax 5/07 at 101.50 AAA 4,270,800 Allocation Refunding Bonds, Civic, Recreational and Industrial Redevelopment Project 1, Series 2002, 5.500%, 5/01/19 - MBIA Insured 2,000 Lake Elsinore Public Financing Authority, California, Local 10/13 at 102.00 N/R 2,063,260 Agency Revenue Refunding Bonds, Series 2003H, 6.000%, 10/01/20 1,265 Lee Lake Water District, Riverside County, California, 9/13 at 102.00 N/R 1,382,721 Special Tax Bonds, Community Facilities District 1 of Sycamore Creek, Series 2003, 6.500%, 9/01/24 1,320 Lincoln, California, Special Tax Bonds, Lincoln Crossing 9/13 at 102.00 N/R 1,408,532 Community Facilities District 03-1, Series 2003A, 6.500%, 9/01/25 1,000 Lincoln, California, Special Tax Bonds, Lincoln Crossing 9/13 at 102.00 N/R 1,027,840 Community Facilities District 03-1, Series 2004, 6.000%, 9/01/34 8,000 Los Angeles County Metropolitan Transportation Authority, 7/08 at 101.00 AAA 8,367,760 California, Proposition C Second Senior Lien Sales Tax Revenue Refunding Bonds, Series 1998A, 5.000%, 7/01/23 - AMBAC Insured 5,000 Los Angeles County Metropolitan Transportation Authority, No Opt. Call AAA 5,618,400 California, Proposition C Second Senior Lien Sales Tax Revenue Refunding Bonds, Series 2003A, 5.250%, 7/01/13 - MBIA Insured 3,295 Oakland Redevelopment Agency, California, Subordinate 3/13 at 100.00 AAA 3,667,796 Lien Tax Allocation Bonds, Central District Redevelopment Project, Series 2003, 5.500%, 9/01/16 - FGIC Insured 2,000 Orange County, California, Special Tax Bonds, Community 8/11 at 101.00 N/R 2,049,640 Facilities District 02-1 of Ladera Ranch, Series 2003A, 5.550%, 8/15/33 2,000 Puerto Rico Public Finance Corporation, Commonwealth No Opt. Call BBB+ 2,395,720 Appropriation Bonds, Series 2002E, 6.000%, 8/01/26 6,000 Riverside County Redevelopment Agency, California, 10/11 at 102.00 AAA 6,381,240 Tax Allocation Bonds, Jurupa Valley Project Area, Series 2001, 5.250%, 10/01/35 - AMBAC Insured 1,055 Rohnert Park Finance Authority, California, Senior Lien 9/13 at 100.00 BBB 1,067,386 Revenue Bonds, Rancho Feliz Mobile Home Park, Series 2003A, 5.750%, 9/15/38 700 Rohnert Park Finance Authority, California, Subordinate 9/13 at 100.00 N/R 713,671 Lien Revenue Bonds, Rancho Feliz Mobile Home Park, Series 2003B, 6.625%, 9/15/38 700 Sacramento, California, Special Tax Bonds, North Natomas 9/14 at 100.00 N/R 725,907 Community Facilities District 4, Series 2003C, 6.000%, 9/01/33 975 San Marcos Public Facilities Authority, California, Special 9/09 at 102.00 N/R 1,003,246 Tax Bonds, Community Facilities District 99-1, Series 2003B, 6.000%, 9/01/24 Santa Clara Valley Transportation Authority, California, Sales Tax Revenue Bonds, Series 2001A: 16,090 5.000%, 6/01/25 - MBIA Insured 6/11 at 100.00 AAA 16,883,881 2,000 5.000%, 6/01/26 - MBIA Insured 6/11 at 100.00 AAA 2,075,420 41 Nuveen California Dividend Advantage Municipal Fund 2 (NVX) (continued) Portfolio of INVESTMENTS February 28, 2005 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED (continued) $ 1,930 West Patterson Financing Authority, California, Special 9/13 at 103.00 N/R $ 2,063,344 Tax Bonds, Community Facilities District 01-1, Series 2003B, 6.750%, 9/01/30 850 West Patterson Financing Authority, California, Special 9/13 at 103.00 N/R 867,230 Tax Bonds, Community Facilities District 2001-1, Series 2004A, 6.125%, 9/01/39 500 West Patterson Financing Authority, California, Special 9/13 at 102.00 N/R 504,065 Tax Bonds, Community Facilities District 01-1, Series 2004B, 6.000%, 9/01/39 3,045 Yucaipa Redevelopment Agency, California, Mobile Home 5/11 at 102.00 N/R 3,230,532 Park Revenue Bonds, Rancho del Sol and Grandview, Series 2001A, 6.750%, 5/15/36 ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 8.9% (6.1% OF TOTAL INVESTMENTS) 7,000 Foothill/Eastern Transportation Corridor Agency, California, 1/14 at 101.00 BBB- 5,762,610 Toll Road Revenue Refunding Bonds, Series 1999, 0.000%, 1/15/27 5,585 Port of Oakland, California, Revenue Bonds, Series 2002N, 11/12 at 100.00 AAA 5,918,480 5.000%, 11/01/16 (Alternative Minimum Tax) - MBIA Insured 2,000 San Francisco Airports Commission, California, Revenue 5/12 at 100.00 AAA 2,132,000 Refunding Bonds, San Francisco International Airport, Second Series 2002, Issue 28A, 5.250%, 5/01/17 (Alternative Minimum Tax) - MBIA Insured San Francisco Airports Commission, California, Revenue Bonds, San Francisco International Airport, Second Series 2003, Issue 29A: 2,430 5.250%, 5/01/18 (Alternative Minimum Tax) - FGIC Insured 5/13 at 100.00 AAA 2,603,988 2,555 5.250%, 5/01/19 (Alternative Minimum Tax) - FGIC Insured 5/13 at 100.00 AAA 2,730,656 1,000 San Francisco Airports Commission, California, Revenue Bonds, 5/13 at 100.00 AAA 1,080,270 San Francisco International Airport, Second Series 2003, Issue 29B, 5.125%, 5/01/17 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED *** - 3.8% (2.6% OF TOTAL INVESTMENTS) 7,600 Southwestern Community College District, San Diego County, 8/11 at 101.00 AAA 8,603,048 California, General Obligation Bonds, Series 2001, 5.375%, 8/01/25 (Pre-refunded to 8/01/11) - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 8.9% (6.0% OF TOTAL INVESTMENTS) 5,000 Anaheim Public Finance Authority, California, Second Lien 10/14 at 100.00 AAA 5,462,400 Electric Distribution Revenue Bonds, Series 2004, 5.250%, 10/01/21 - MBIA Insured 6,000 California Department of Water Resources, Power Supply 5/12 at 101.00 A2 6,444,720 Revenue Bonds, Series 2002A, 5.125%, 5/01/18 Los Angeles Department of Water and Power, California, Power System Revenue Bonds, Series 2003A-2: 750 5.000%, 7/01/21 - MBIA Insured 7/13 at 100.00 AAA 798,607 1,000 5.000%, 7/01/23 - MBIA Insured 7/13 at 100.00 AAA 1,058,210 3,000 Merced Irrigation District, California, Revenue Refunding 9/05 at 102.00 Baa3 3,087,930 Bonds, Electric System Project, Series 2001, 6.850%, 9/01/36 1,000 Merced Irrigation District, California, Revenue Certificates 9/05 at 103.00 Baa3 1,038,260 of Participation, Electric System Project, Series 2002, 6.500%, 9/01/34 2,000 Santa Clara, California, Subordinate Electric Revenue Bonds, 7/13 at 100.00 AAA 2,186,420 Series 2003A, 5.250%, 7/01/20 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 13.7% (9.3% OF TOTAL INVESTMENTS) 2,740 California Department of Water Resources, Water System 12/12 at 100.00 AAA 2,963,009 Revenue Bonds, Central Valley Project, Series 2002Z, 5.000%, 12/01/18 - FGIC Insured 4,900 East Bay Municipal Utility District, Alameda and Contra 6/11 at 100.00 AAA 5,084,779 Costa Counties, California, Water System Subordinated Revenue Bonds, Series 2001, 5.000%, 6/01/26 - MBIA Insured 42 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER (continued) $ 2,655 El Dorado Irrigation District, California, Water and Sewer 3/14 at 100.00 AAA $ 2,832,434 Certificates of Participation, Series 2004A, 5.000%, 3/01/20 - FGIC Insured 1,700 San Buenaventura, California, Wastewater Revenue 3/14 at 100.00 AAA 1,786,156 Certificates of Participation, Series 2004, 5.000%, 3/01/24 - MBIA Insured 6,885 San Diego Public Facilities Financing Authority, California, 8/12 at 100.00 AAA 7,323,297 Subordinate Lien Water Revenue Bonds, Series 2002, 5.000%, 8/01/21 - MBIA Insured 10,000 San Francisco City and County Public Utilities Commission, 4/13 at 100.00 AAA 10,941,800 California, Clean Water Revenue Refunding Bonds, Series 2003A, 5.250%, 10/01/20 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ $ 313,067 Total Long-Term Investments (cost $316,791,709) - 146.9% 332,565,169 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 1.7% 3,819,493 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (48.6)% (110,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 226,384,662 ====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. * 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. N/R Investment is not rated. (WI) Security purchased on a when-issued basis. See accompanying notes to financial statements. 43 Nuveen California Dividend Advantage Municipal Fund 3 (NZH) Portfolio of INVESTMENTS February 28, 2005 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 5.8% (3.8% OF TOTAL INVESTMENTS) $ 11,240 California County Tobacco Securitization Agency, Tobacco 6/12 at 100.00 Baa3 $ 10,750,498 Settlement Asset-Backed Bonds, Merced County Tobacco Funding Corporation, Series 2002A, 5.500%, 6/01/33 6,100 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 BBB 6,221,756 Tobacco Settlement Asset-Backed Bonds, Series 2003A-1, 6.250%, 6/01/33 4,200 Southern California Tobacco Securitization Authority, Tobacco 6/12 at 100.00 BBB 3,913,098 Settlement Asset-Backed Bonds, Senior Series 2001A, 5.500%, 6/01/36 ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 7.7% (5.1% OF TOTAL INVESTMENTS) 3,825 California Educational Facilities Authority, Student Loan 3/08 at 102.00 Aaa 4,023,823 Revenue Bonds, Cal Loan Program, Series 2001A, 5.400%, 3/01/21 (Alternative Minimum Tax) - MBIA Insured 3,600 California State Public Works Board, Lease Revenue Bonds, 10/12 at 100.00 AAA 3,947,112 University of California System, Series 2002A, 5.375%, 10/01/17 - FSA Insured 620 California Statewide Community Development Authority, 10/13 at 100.00 N/R 612,058 Revenue Bonds, Notre Dame de Namur University, Series 2003, 6.500%, 10/01/23 7,595 San Francisco State University Foundation Inc., California, 9/11 at 100.00 AAA 7,930,547 Auxiliary Organization Student Housing Revenue Bonds, Series 2001, 5.000%, 9/01/26 - MBIA Insured 2,990 University of California, Revenue Bonds, Multiple Purpose 9/08 at 101.00 AA 3,081,763 Projects, Series 2000K, 5.000%, 9/01/23 3,820 University of California, Revenue Bonds, Research Facilities, 9/09 at 101.00 AAA 3,959,239 Series 2001E, 5.000%, 9/01/26 - AMBAC Insured 4,000 University of California, Revenue Bonds, Multi-Purpose 5/13 at 100.00 AAA 4,231,800 Projects, Series 2003A, 5.000%, 5/15/23 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ HEALTHCARE - 12.4% (8.3% OF TOTAL INVESTMENTS) California Health Facilities Financing Authority, Revenue Bonds, Casa Colina Inc., Series 2001: 4,000 6.000%, 4/01/22 4/12 at 100.00 BBB+ 4,254,560 2,000 6.125%, 4/01/32 4/12 at 100.00 BBB+ 2,106,380 9,000 California Infrastructure Economic Development Bank, Revenue 8/11 at 102.00 A 9,528,120 Bonds, Kaiser Hospital Assistance LLC, Series 2001A, 5.550%, 8/01/31 7,665 California Statewide Community Development Authority, 11/09 at 102.00 A 8,142,530 Insured Mortgage Hospital Revenue Bonds, Mission Community Hospital, Series 2001, 5.375%, 11/01/21 6,525 California Statewide Community Development Authority, No Opt. Call A 7,473,017 Health Facility Revenue Refunding Bonds, Memorial Health Services, Series 2003A, 6.000%, 10/01/12 6,450 California Statewide Community Development Authority, 6/13 at 100.00 AAA 7,018,955 Hospital Revenue Bonds, Monterey Peninsula Hospital, Series 2003B, 5.250%, 6/01/18 - FSA Insured Central California Joint Powers Health Finance Authority, Certificates of Participation, Community Hospitals of Central California Obligated Group, Series 2000: 1,770 6.000%, 2/01/20 2/10 at 101.00 Baa2 1,867,669 1,740 6.000%, 2/01/30 2/10 at 101.00 Baa2 1,812,001 2,500 Whittier, California, Health Facility Revenue Bonds, 6/12 at 101.00 A 2,667,550 Presbyterian Intercommunity Hospital, Series 2002, 5.600%, 6/01/22 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 8.7% (5.8% OF TOTAL INVESTMENTS) ABAG Finance Authority for Non-Profit Corporations, California, Multifamily Housing Revenue Refunding Bonds, United Dominion/2000 Post Apartments, Series 2000B: 4,750 6.400%, 8/15/30 (Alternative Minimum Tax) (Mandatory put 8/15/08) No Opt. Call Baa2 5,133,943 4,000 6.250%, 8/15/30 (Mandatory put 8/15/08) No Opt. Call Baa2 4,344,000 5,235 California Statewide Community Development Authority, 8/12 at 105.00 Aaa 5,832,732 GNMA Collateralized Housing Revenue Refunding Bonds, Crowne Pointe Project, Series 2002F, 6.750%, 8/20/37 44 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY (continued) $ 7,500 San Bernardino County Housing Authority, California, No Opt. Call BBB+ $ 7,984,800 Multifamily Housing Revenue Refunding Bonds, Equity Residential Properties/Redlands Lawn and Tennis Apartments, Series 1999A, 5.200%, 6/15/29 (Mandatory put 6/15/09) 3,610 San Bernardino County Housing Authority, California, 11/11 at 105.00 Aaa 3,894,757 GNMA Collateralized Multifamily Mortgage Revenue Bonds, Pacific Palms Mobile Home Park, Series 2001A, 6.700%, 12/20/41 San Jose, California, Multifamily Housing Revenue Bonds, GNMA Mortgage-Backed Securities Program, Lenzen Housing, Series 2001B: 1,250 5.350%, 2/20/26 (Alternative Minimum Tax) 8/11 at 102.00 AAA 1,295,913 2,880 5.450%, 2/20/43 (Alternative Minimum Tax) 8/11 at 102.00 AAA 2,965,219 ------------------------------------------------------------------------------------------------------------------------------------ INDUSTRIALS - 1.3% (0.9% OF TOTAL INVESTMENTS) 4,715 California Pollution Control Financing Authority, Solid Waste No Opt. Call BBB 4,735,463 Disposal Revenue Bonds, Waste Management Inc., Series 2002B, 4.450%, 7/01/27 (Alternative Minimum Tax) (Mandatory put 7/01/05) ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 1.5% (1.0% OF TOTAL INVESTMENTS) California Health Facilities Financing Authority, Insured Senior Living Revenue Bonds/Aldersly, Series 2002A: 1,500 5.125%, 3/01/22 3/12 at 101.00 A 1,569,120 1,315 5.250%, 3/01/32 3/12 at 101.00 A 1,370,375 2,450 California Health Facilities Financing Authority, Insured 1/13 at 100.00 A 2,560,789 Revenue Bonds, Northern California Retired Officers Community Corporation - Paradise Valley Estates, Series 2002, 5.125%, 1/01/22 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 31.0% (20.6% OF TOTAL INVESTMENTS) 8,500 California, General Obligation Veterans Welfare Bonds, 6/05 at 101.00 AA- 8,570,550 Series 1997BH, 5.500%, 12/01/18 (Alternative Minimum Tax) 10 California, General Obligation Veterans Welfare Bonds, 12/06 at 102.00 AA- 10,470 Series 1997BJ, 5.500%, 12/01/18 (Alternative Minimum Tax) 9,335 California, General Obligation Bonds, Series 2002, No Opt. Call AAA 11,106,316 6.000%, 2/01/16 - FSA Insured California, General Obligation Refunding Bonds, Series 2002: 8,450 5.000%, 2/01/12 No Opt. Call A 9,204,332 2,780 6.000%, 4/01/16 - AMBAC Insured No Opt. Call AAA 3,322,267 14,300 California, General Obligation Veterans Welfare Bonds, 6/07 at 101.00 AAA 14,644,773 Series 2001BZ, 5.350%, 12/01/21 (Alternative Minimum Tax) - MBIA Insured 9,000 California, General Obligation Bonds, Series 2004, 4/14 at 100.00 A 9,550,080 5.125%, 4/01/23 1,840 Compton Unified School District, Los Angeles County, 9/13 at 100.00 AAA 2,028,471 California, General Obligation Bonds, Series 2003A, 5.250%, 9/01/18 - MBIA Insured 3,000 Contra Costa County Community College District, California, 8/12 at 100.00 AAA 3,163,380 General Obligation Bonds, Series 2002, 5.000%, 8/01/23 - FGIC Insured 2,500 Fullerton Joint Union High School District, Orange County, 8/12 at 100.00 Aaa 2,635,700 California, General Obligation Bonds, Series 2002A, 5.000%, 8/01/23 - FSA Insured 2,260 Jurupa Unified School District, Riverside County, California, 8/11 at 101.00 AAA 2,426,246 General Obligation Bonds, Series 2002, 5.125%, 8/01/22 - FGIC Insured Los Angeles Unified School District, California, General Obligation Bonds, Series 2003A: 3,750 5.250%, 7/01/20 - FSA Insured 7/13 at 100.00 AAA 4,099,538 7,200 5.000%, 7/01/22 - FSA Insured 7/13 at 100.00 AAA 7,631,064 1,525 Lucia Mar Unified School District, San Luis Obispo County, 8/14 at 100.00 Aaa 1,666,520 California, General Obligation Bonds, Series 2004A, 5.250%, 8/01/22 - FGIC Insured 2,710 Pajaro Valley Unified School District, Santa Cruz County, 8/13 at 100.00 AAA 2,872,871 California, General Obligation Bonds, Series 2003, 5.000%, 8/01/22 - FSA Insured 870 Puerto Rico, General Obligation and Public Improvement Bonds, 7/11 at 100.00 AAA 923,261 Series 2001, 5.000%, 7/01/24 - FSA Insured 5,000 Riverside Unified School District, Riverside County, California, 2/12 at 101.00 AAA 5,214,000 General Obligation Bonds, Series 2002A, 5.000%, 2/01/27 - FGIC Insured 45 Nuveen California Dividend Advantage Municipal Fund 3 (NZH) (continued) Portfolio of INVESTMENTS February 28, 2005 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL (continued) $ 10,810 San Diego Unified School District, San Diego County, 7/11 at 102.00 AAA $ 11,331,258 California, General Obligation Bonds, Election of 1998, Series 2001C, 5.000%, 7/01/26 - FSA Insured 4,000 San Diego Unified School District, San Diego County, 7/12 at 101.00 AAA 4,493,000 California, General Obligation Bonds, Election of 1998, Series 2002D, 5.250%, 7/01/21 - FGIC Insured 1,000 Saugus Union School District, Los Angeles County, California, 8/12 at 100.00 AAA 1,050,940 General Obligation Bonds, Series 2002A, 5.000%, 8/01/24 - FGIC Insured 3,905 Southwestern Community College District, San Diego County, 8/14 at 100.00 AAA 4,156,912 California, General Obligation Bonds, Series 2004, 5.000%, 8/01/22 - FGIC Insured 1,630 West Contra Costa Unified School District, Contra Costa 8/11 at 101.00 AAA 1,725,714 County, California, General Obligation Bonds, Series 2003C, 5.000%, 8/01/22 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 44.1% (29.3% OF TOTAL INVESTMENTS) 4,000 Beaumont Financing Authority, California, Local Agency Revenue 9/12 at 102.00 N/R 4,206,080 Bonds, Series 2002A, 6.750%, 9/01/25 7,135 Brentwood Infrastructure Financing Authority, Contra Costa 11/11 at 100.00 AAA 7,491,821 County, California, Capital Improvement Revenue Bonds, Series 2001, 5.000%, 11/01/25 - FSA Insured 7,350 California, Economic Recovery Revenue Bonds, Series 2004A, 7/14 at 100.00 AA- 8,028,699 5.000%, 7/01/15 3,350 California State Public Works Board, Lease Revenue Bonds, 12/12 at 100.00 AAA 3,644,197 Department of General Services, Capital East End Project, Series 2002A, 5.250%, 12/01/17 - AMBAC Insured 8,210 California State Public Works Board, Lease Revenue Bonds, 12/13 at 100.00 A- 9,160,061 Department of Corrections, Series 2003C, 5.500%, 6/01/16 4,510 California State Public Works Board, Lease Revenue Bonds, 12/11 at 102.00 AAA 4,723,007 Department of Mental Health, Hospital Addition, Series 2001A, 5.000%, 12/01/26 - AMBAC Insured 9,000 California State Public Works Board, Lease Revenue Bonds, 3/12 at 100.00 AAA 9,325,350 Department of General Services, Series 2002B, 5.000%, 3/01/27 - AMBAC Insured Capistrano Unified School District, Orange County, California, Special Tax Bonds, Community Facilities District 90-2, Talega, Series 2003: 1,750 5.875%, 9/01/23 9/13 at 100.00 N/R 1,860,670 550 6.000%, 9/01/33 9/13 at 100.00 N/R 582,071 1,810 Cerritos Public Financing Authority, California, Tax Allocation No Opt. Call AAA 1,993,317 Revenue Bonds, Los Cerritos Redevelopment Projects, Series 2002A, 5.000%, 11/01/14 - AMBAC Insured 1,270 Coalinga Public Financing Authority, California, Local No Opt. Call AAA 1,526,985 Obligation Senior Lien Revenue Bonds, Series 1998A, 6.000%, 9/15/18 - AMBAC Insured 2,000 Daly City Housing Development Finance Agency, California, 12/13 at 102.00 A- 2,123,840 Mobile Home Park Revenue Bonds, Franciscan Mobile Home Park Project, Series 2002A, 5.800%, 12/15/25 1,125 Fontana, California, Special Tax Bonds, Sierra Community 9/14 at 100.00 N/R 1,145,790 Facilities District 22, Series 2004, 6.000%, 9/01/34 1,000 Fullerton Community Facilities District 1, California, Special 9/12 at 100.00 N/R 1,043,800 Tax Bonds, Amerige Heights, Series 2002, 6.100%, 9/01/22 3,000 Lake Elsinore Public Financing Authority, California, Local 10/13 at 102.00 N/R 3,094,890 Agency Revenue Refunding Bonds, Series 2003H, 6.000%, 10/01/20 5,250 Lammersville School District, San Joaquin County, 9/12 at 101.00 N/R 5,594,348 California, Special Tax Bonds, Community Facilities District of Mountain House, Series 2002, 6.300%, 9/01/24 2,000 Lee Lake Water District, Riverside County, California, Special 9/13 at 102.00 N/R 2,186,120 Tax Bonds, Community Facilities District 1 of Sycamore Creek, Series 2003, 6.500%, 9/01/24 2,200 Lincoln, California, Special Tax Bonds, Lincoln Crossing 9/13 at 102.00 N/R 2,347,554 Community Facilities District 03-1, Series 2003A, 6.500%, 9/01/25 1,500 Lincoln, California, Special Tax Bonds, Lincoln Crossing 9/13 at 102.00 N/R 1,541,760 Community Facilities District 03-1, Series 2004, 6.000%, 9/01/34 5,425 Lodi, California, Certificates of Participation, Public 10/12 at 100.00 AAA 5,645,364 Improvement Financing Project, Series 2002, 5.000%, 10/01/26 - MBIA Insured 4,075 Los Angeles County Metropolitan Transportation Authority, No Opt. Call AAA 4,578,996 California, Proposition C Second Senior Lien Sales Tax Revenue Refunding Bonds, Series 2003A, 5.250%, 7/01/13 - MBIA Insured 46 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED (continued) $ 1,000 Monterey County, California, Certificates of Participation, 8/11 at 100.00 Aaa $ 1,095,970 Master Plan Financing, Series 2001, 5.250%, 8/01/15 - MBIA Insured 1,675 Moreno Valley Unified School District, Riverside County, 3/14 at 100.00 AAA 1,753,524 California, Certificates of Participation, Series 2005, 5.000%, 3/01/26 - FSA Insured 1,000 Norco, California, Special Tax Bonds, Community Facilities 9/12 at 102.00 N/R 1,044,170 District 01-1, Series 2002, 6.750%, 9/01/22 3,000 Oakland Redevelopment Agency, California, Subordinate 3/13 at 100.00 AAA 3,324,180 Lien Tax Allocation Bonds, Central District Redevelopment Project, Series 2003, 5.500%, 9/01/19 - FGIC Insured 4,520 Ontario Redevelopment Financing Authority, California, Lease 8/11 at 101.00 AAA 4,749,706 Revenue Bonds, Capital Projects, Series 2001, 5.000%, 8/01/24 - AMBAC Insured 2,000 Orange County, California, Special Tax Bonds, Community 8/11 at 101.00 N/R 2,049,640 Facilities District 02-1 of Ladera Ranch, Series 2003A, 5.550%, 8/15/33 11,165 Palm Desert Financing Authority, California, Tax Allocation 4/12 at 102.00 AAA 11,686,182 Revenue Refunding Bonds, Project Area 1, Series 2002, 5.100%, 4/01/30 - MBIA Insured 3,250 Pomoma Public Financing Authority, California, Revenue 2/11 at 100.00 AAA 3,348,053 Refunding Bonds, Merged Redevelopment Projects, Series 2001AD, 5.000%, 2/01/27 - MBIA Insured 5,500 Puerto Rico Highway and Transportation Authority, Highway 7/12 at 100.00 A 5,856,070 Revenue Bonds, Series 2002D, 5.375%, 7/01/36 1,735 Rohnert Park Finance Authority, California, Senior Lien 9/13 at 100.00 BBB 1,755,369 Revenue Bonds, Rancho Feliz Mobile Home Park, Series 2003A, 5.750%, 9/15/38 1,125 Rohnert Park Finance Authority, California, Subordinate Lien 9/13 at 100.00 N/R 1,146,971 Revenue Bonds, Rancho Feliz Mobile Home Park, Series 2003B, 6.625%, 9/15/38 1,700 Roseville, California, Special Tax Bonds, Community Facilities 9/09 at 103.00 N/R 1,748,025 District 1 - Crocker, Series 2003, 6.000%, 9/01/27 1,150 Sacramento, California, Special Tax Bonds, North Natomas 9/14 at 100.00 N/R 1,192,561 Community Facilities District 4, Series 2003C, 6.000%, 9/01/33 14,505 San Diego Redevelopment Agency, California, Subordinate 9/11 at 101.00 AAA 15,131,471 Lien Tax Allocation Bonds, Centre City Project, Series 2001A, 5.000%, 9/01/26 - FSA Insured 8,725 San Francisco Bay Area Rapid Transit District, California, 7/11 at 100.00 AAA 9,057,946 Sales Tax Revenue Bonds, Series 2001, 5.000%, 7/01/26 - AMBAC Insured 1,595 San Marcos Public Facilities Authority, California, Special 9/09 at 102.00 N/R 1,641,207 Tax Bonds, Community Facilities District 99-1, Series 2003B, 6.000%, 9/01/24 1,595 Santa Clara Valley Transportation Authority, California, 6/11 at 100.00 AAA 1,687,781 Sales Tax Revenue Bonds, Series 2001A, 5.000%, 6/01/22 - MBIA Insured 2,810 West Patterson Financing Authority, California, Special 9/13 at 103.00 N/R 3,057,533 Tax Bonds, Community Facilities District 01-1, Series 2003B, 7.000%, 9/01/38 1,375 West Patterson Financing Authority, California, Special 9/13 at 103.00 N/R 1,402,871 Tax Bonds, Community Facilities District 2001-1, Series 2004A, 6.125%, 9/01/39 2,000 West Patterson Financing Authority, California, Special 9/13 at 102.00 N/R 2,016,260 Tax Bonds, Community Facilities District 01-1, Series 2004B, 6.000%, 9/01/39 2,500 Yucaipa-Calimesa Joint Unified School District, 10/11 at 100.00 AAA 2,589,975 San Bernardino County, California, General Obligation Refunding Bonds, Series 2001A, 5.000%, 10/01/26 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 9.4% (6.2% OF TOTAL INVESTMENTS) 11,750 Foothill/Eastern Transportation Corridor Agency, California, 1/14 at 101.00 BBB- 9,642,872 Toll Road Revenue Refunding Bonds, Series 1999, 0.000%, 1/15/28 1,500 Port of Oakland, California, Revenue Refunding Bonds, 11/07 at 102.00 AAA 1,633,065 Series 1997I, 5.600%, 11/01/19 - MBIA Insured 1,000 Port of Oakland, California, Revenue Bonds, Series 2002M, 11/12 at 100.00 AAA 1,094,510 5.250%, 11/01/20 - FGIC Insured San Francisco Airports Commission, California, Revenue Bonds, San Francisco International Airport, Second Series 2003, Issue 29B: 4,110 5.125%, 5/01/17 - FGIC Insured 5/13 at 100.00 AAA 4,439,910 10,625 5.125%, 5/01/18 - FGIC Insured 5/13 at 100.00 AAA 11,454,706 5,140 5.125%, 5/01/19 - FGIC Insured 5/13 at 100.00 AAA 5,522,827 47 Nuveen California Dividend Advantage Municipal Fund 3 (NZH) (continued) Portfolio of INVESTMENTS February 28, 2005 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED *** - 1.1% (0.7% OF TOTAL INVESTMENTS) $ 1,380 Puerto Rico, General Obligation and Public Improvement 7/11 at 100.00 AAA $ 1,518,580 Bonds, Series 2001, 5.000%, 7/01/24 (Pre-refunded to 7/01/11) - FSA Insured 2,085 San Marcos Public Facilities Authority, California, Special 9/07 at 102.00 N/R*** 2,299,567 Tax Revenue Bonds, Community Facilities District 99-1, Series 2002, 6.300%, 9/01/20 (Pre-refunded to 9/01/07) ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 13.0% (8.7% OF TOTAL INVESTMENTS) 15,000 California Pollution Control Financing Authority, Remarketed 4/11 at 102.00 AAA 16,212,600 Revenue Bonds, Pacific Gas and Electric Company, Series 1996A, 5.350%, 12/01/16 (Alternative Minimum Tax) - MBIA Insured California Department of Water Resources, Power Supply Revenue Bonds, Series 2002A: 3,500 5.375%, 5/01/17 - XLCA Insured 5/12 at 101.00 AAA 3,887,345 9,000 5.125%, 5/01/18 5/12 at 101.00 A2 9,667,080 1,200 Los Angeles Department of Water and Power, California, 7/13 at 100.00 AAA 1,277,772 Power System Revenue Bonds, Series 2003A-2, 5.000%, 7/01/21 - MBIA Insured 1,600 Merced Irrigation District, California, Revenue Certificates 9/05 at 103.00 Baa3 1,661,216 of Participation, Electric System Project, Series 2002, 6.500%, 9/01/34 5,000 Merced Irrigation District, California, Revenue Certificates 9/13 at 102.00 Baa3 5,215,650 of Participation, Electric System Project, Series 2003, 5.700%, 9/01/36 2,250 Salinas Valley Solid Waste Authority, California, Revenue 8/12 at 100.00 AAA 2,355,480 Bonds, Series 2002, 5.125%, 8/01/22 (Alternative Minimum Tax) - AMBAC Insured 6,085 Southern California Public Power Authority, Revenue Bonds, 7/13 at 100.00 AAA 6,676,219 Magnolia Power Project, Series 2003-1A, 5.250%, 7/01/16 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 13.8% (9.2% OF TOTAL INVESTMENTS) 1,070 Burbank, California, Wastewater System Revenue Bonds, 6/14 at 100.00 AAA 1,133,772 Series 2004A, 5.000%, 6/01/22 - AMBAC Insured 8,000 California Department of Water Resources, Water System 6/13 at 100.00 AAA 8,970,560 Revenue Bonds, Central Valley Project, Series 2003Y, 5.250%, 12/01/13 - FGIC Insured 7,000 Carmichael Water District, Sacramento County, California, 9/09 at 102.00 AAA 7,262,430 Water Revenue Certificates of Participation, Series 1999, 5.125%, 9/01/29 - MBIA Insured 2,000 El Dorado Irrigation District, California, Water and 3/14 at 100.00 AAA 2,133,660 Sewer Certificates of Participation, Series 2004A, 5.000%, 3/01/20 - FGIC Insured 1,000 Pico Rivera Water Authority, California, Revenue Bonds, 12/11 at 102.00 N/R 1,072,660 Series 2001A, 6.250%, 12/01/32 1,000 San Buenaventura, California, Wastewater Revenue 3/14 at 100.00 AAA 1,050,680 Certificates of Participation, Series 2004, 5.000%, 3/01/24 - MBIA Insured San Diego Public Facilities Financing Authority, California, Subordinate Lien Water Revenue Bonds, Series 2002: 2,500 5.000%, 8/01/23 - MBIA Insured 8/12 at 100.00 AAA 2,636,150 6,260 5.000%, 8/01/24 - MBIA Insured 8/12 at 100.00 AAA 6,578,884 San Francisco City and County Public Utilities Commission, California, Clean Water Revenue Refunding Bonds, Series 2003A: 3,315 5.250%, 10/01/18 - MBIA Insured 4/13 at 100.00 AAA 3,654,290 12,000 5.250%, 10/01/19 - MBIA Insured 4/13 at 100.00 AAA 13,174,680 1,955 Westlands Water District, California, Revenue Certificates 3/15 at 100.00 AAA 2,069,424 of Participation, Series 2005A, 5.000%, 9/01/23 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ $ 510,980 Total Long-Term Investments (cost $520,719,732) - 149.8% 540,534,024 =============----------------------------------------------------------------------------------------------------------------------- 48 PRINCIPAL MARKET AMOUNT (000) DESCRIPTION(1) RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ SHORT-TERM INVESTMENTS - 0.6% (0.4% OF TOTAL INVESTMENTS) $ 2,000 Pittsburg Redevelopment Agency, California, Tax Allocation A-1+ $ 2,000,000 Bonds, Los Medanos Community Development Project, Variable Rate Demand Obligations, Series 2004A, 1.760%, 9/01/35 - AMBAC Insured+ ------------------------------------------------------------------------------------------------------------------------------------ $ 2,000 Total Short-Term Investments (cost $2,000,000) 2,000,000 =============----------------------------------------------------------------------------------------------------------------------- Total Investments (cost $522,719,732) - 150.4% 542,534,024 -------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 1.4% 5,189,749 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (51.8)% (187,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 360,723,773 ====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. * 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. Such securities are normally considered to be equivalent to AAA rated securities. N/R Investment is not rated. + 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 in effect at the end of the reporting period. This rate changes periodically based on market conditions or a specified market index. See accompanying notes to financial statements. 49 Nuveen Insured California Dividend Advantage Municipal Fund (NKL) Portfolio of INVESTMENTS February 28, 2005 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 2.2% (1.5% OF TOTAL INVESTMENTS) $ 4,500 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 BBB $ 5,174,685 Tobacco Settlement Asset-Backed Revenue Bonds, Series 2003A-2, 7.900%, 6/01/42 ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 9.1% (6.1% OF TOTAL INVESTMENTS) 1,675 California Educational Facilities Authority, Revenue Bonds, 10/12 at 100.00 A2 1,744,580 University of San Diego, Series 2002A, 5.250%, 10/01/30 9,000 California State University, Systemwide Revenue Bonds, 11/12 at 100.00 AAA 9,465,480 Series 2002A, 5.125%, 11/01/26 - AMBAC Insured 1,000 California Statewide Community Development Authority, 8/12 at 100.00 A 1,056,030 Student Housing Revenue Bonds, EAH - Irvine East Campus Apartments, LLC Project, Series 2002A, 5.500%, 8/01/22 - ACA Insured 9,000 University of California, Revenue Bonds, Multiple Purpose 9/08 at 101.00 AA 9,327,510 Projects, Series 2000K, 5.300%, 9/01/30 ------------------------------------------------------------------------------------------------------------------------------------ HEALTHCARE - 8.1% (5.4% OF TOTAL INVESTMENTS) 5,000 ABAG Finance Authority for Non-Profit Corporations, 4/12 at 100.00 A 5,378,000 California, Insured Revenue Bonds, Sansum-Santa Barbara Medical Foundation Clinic, Series 2002A, 5.600%, 4/01/26 California Health Facilities Financing Authority, Revenue Bonds, Cedars-Sinai Medical Center, Series 1999A: 2,500 6.125%, 12/01/30 12/09 at 101.00 A3 2,709,625 3,000 6.250%, 12/01/34 12/09 at 101.00 A3 3,274,260 2,815 California Health Facilities Financing Authority, Revenue 8/13 at 100.00 AAA 2,983,224 Bonds, Lucile Salter Packard Hospital, Series 2003C, 5.000%, 8/15/20 - AMBAC Insured 1,090 California State Public Works Board, Revenue Bonds, 11/14 at 100.00 AAA 1,156,457 University of California - Davis Medical Center, Series 2004II-A, 5.000%, 11/01/21 - MBIA Insured 3,380 Rancho Mirage Joint Powers Financing Authority, 7/14 at 100.00 A3 3,645,431 California, Revenue Bonds, Eisenhower Medical Center, Series 2004, 5.875%, 7/01/26 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 0.9% (0.5% OF TOTAL INVESTMENTS) 1,905 Los Angeles, California, GNMA Mortgage-Backed Securities 7/11 at 102.00 AAA 2,045,551 Program Multifamily Housing Revenue Bonds, Park Plaza West Senior Apartments, Series 2001B, 5.300%, 1/20/21 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ INDUSTRIALS - 1.3% (0.9% OF TOTAL INVESTMENTS) 3,000 California Pollution Control Financing Authority, Solid Waste No Opt. Call BBB+ 3,155,280 Disposal Revenue Bonds, Republic Services Inc., Series 2002C, 5.250%, 6/01/23 (Alternative Minimum Tax) (Mandatory put 12/01/17) ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 3.5% (2.4% OF TOTAL INVESTMENTS) 3,000 ABAG Finance Authority for Non-Profit Corporations, 11/12 at 100.00 A 3,157,950 California, Insured Senior Living Revenue Bonds, Odd Fellows Home of California, Series 2003A, 5.200%, 11/15/22 5,000 California Statewide Community Development Authority, 11/13 at 100.00 A 5,257,400 Revenue Bonds, Jewish Home for the Aging, Series 2003, 5.000%, 11/15/18 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 35.4% (23.9% OF TOTAL INVESTMENTS) 5,920 Cajon Valley Union School District, San Diego County, 8/10 at 102.00 AAA 6,175,803 California, General Obligation Bonds, Series 2002B, 5.125%, 8/01/32 - MBIA Insured California, General Obligation Refunding Bonds, Series 2002: 1,000 6.000%, 4/01/16 - AMBAC Insured No Opt. Call AAA 1,195,060 9,000 5.000%, 2/01/22 - MBIA Insured 2/12 at 100.00 AAA 9,425,700 2,900 California, General Obligation Bonds, Series 2003, 5.000%, 2/01/21 8/13 at 100.00 A 3,051,525 Compton Community College District, Los Angeles County, California, General Obligation Bonds, Series 2004A: 2,315 5.250%, 7/01/22 - MBIA Insured 7/14 at 100.00 AAA 2,528,211 2,560 5.250%, 7/01/23 - MBIA Insured 7/14 at 100.00 AAA 2,785,382 2,415 El Monte Union High School District, Los Angeles County, 6/13 at 100.00 AAA 2,516,816 California, General Obligation Bonds, Series 2003A, 5.000%, 6/01/28 - FSA Insured 50 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL (continued) $ 10,000 Fremont Unified School District, Alameda County, California, 8/12 at 101.00 AAA $ 10,499,400 General Obligation Bonds, Series 2002A, 5.000%, 8/01/25 - FGIC Insured 5,000 Los Angeles Unified School District, California, General 7/12 at 100.00 AAA 5,245,800 Obligation Bonds, Series 2002E, 5.125%, 1/01/27 - MBIA Insured Los Angeles Unified School District, California, General Obligation Bonds, Series 2003A: 4,700 5.000%, 7/01/22 - FSA Insured 7/13 at 100.00 AAA 4,981,389 3,500 5.000%, 1/01/28 - MBIA Insured 7/13 at 100.00 AAA 3,653,790 1,500 Madera Unified School District, Madera County, California, 8/12 at 100.00 AAA 1,557,870 General Obligation Bonds, Series 2002, 5.000%, 8/01/28 - FSA Insured 2,500 Oakland Unified School District, Alameda County, California, 8/12 at 100.00 AAA 2,731,525 General Obligation Bonds, Series 2002, 5.250%, 8/01/21 - FGIC Insured 3,300 Peralta Community College District, Alameda County, 8/09 at 102.00 AAA 3,399,429 California, General Obligation Bonds, Election of 2000, Series 2001A, 5.000%, 8/01/31 - FGIC Insured 3,250 San Diego Unified School District, San Diego County, 7/11 at 102.00 AAA 3,440,580 California, General Obligation Bonds, Election of 1998, Series 2001C, 5.000%, 7/01/22 - FSA Insured 1,160 San Gabriel Unified School District, Los Angeles County, 8/15 at 100.00 AAA 1,241,200 California, General Obligation Bonds, Series 2005, 5.000%, 8/01/22 - FSA Insured 3,500 San Mateo County Community College District, California, 9/12 at 100.00 AAA 3,654,630 General Obligation Bonds, Series 2002A, 5.000%, 9/01/26 - FGIC Insured 2,980 Santa Clarita Community College District, Los Angeles 8/11 at 101.00 AAA 3,135,735 County, California, General Obligation Bonds, Series 2002, 5.125%, 8/01/26 - FGIC Insured 2,460 Vacaville Unified School District, Solano County, California, 8/11 at 101.00 AAA 2,567,600 General Obligation Bonds, Series 2002, 5.000%, 8/01/26 - FSA Insured 10,000 Vista Unified School District, San Diego County, California, 8/12 at 100.00 AAA 10,544,600 General Obligation Bonds, Series 2002A, 5.000%, 8/01/23 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 41.7% (28.2% OF TOTAL INVESTMENTS) 1,450 Baldwin Park Public Financing Authority, California, Sales 8/13 at 102.00 BBB 1,507,029 Tax and Tax Allocation Bonds, Puente Merced Redevelopment Project, Series 2003, 5.250%, 8/01/21 6,895 Brea and Olinda Unified School District, Orange County, 8/11 at 101.00 AAA 7,228,511 California, Certificates of Participation Refunding, Series 2002A, 5.125%, 8/01/26 - FSA Insured 2,290 Burbank Public Financing Authority, California, Revenue 12/13 at 100.00 AAA 2,502,260 Refunding Bonds, Golden State Redevelopment Project, Series 2003A, 5.250%, 12/01/19 - AMBAC Insured 2,200 California Infrastructure Economic Development Bank, 9/13 at 101.00 AAA 2,297,306 Los Angeles County, Revenue Bonds, Department of Public Social Services, Series 2003, 5.000%, 9/01/28 - AMBAC Insured 3,100 California State Public Works Board, Lease Revenue Bonds, 12/13 at 100.00 A- 3,454,578 Department of Corrections, Series 2003C, 5.500%, 6/01/15 7,035 Corona-Norco Unified School District, Riverside County, 9/13 at 100.00 AAA 7,319,214 California, Special Tax Bonds, Community Facilities District 98-1, Series 2003, 5.000%, 9/01/28 - MBIA Insured 3,145 Culver City Redevelopment Agency, California, Tax Allocation 5/11 at 101.00 AAA 3,298,602 Revenue Bonds, Redevelopment Project, Series 2002A, 5.125%, 11/01/25 - MBIA Insured 1,020 Desert Sands Unified School District, Riverside County, 3/12 at 101.00 AAA 1,085,790 California, Certificates of Participation Refunding, Series 2002, 5.000%, 3/01/20 - MBIA Insured 8,720 El Monte, California, Senior Lien Certificates of Participation, 1/11 at 100.00 AAA 9,075,253 Department of Public Services Facility Phase II, Series 2001, 5.000%, 1/01/21 - AMBAC Insured 4,000 Folsom Public Financing Authority, California, Special Tax 9/12 at 102.00 AAA 4,256,800 Revenue Bonds, Series 2004A, 5.000%, 9/01/21 - AMBAC Insured 2,115 Inglewood Redevelopment Agency, California, Tax Allocation No Opt. Call AAA 2,371,909 Refunding Bonds, Merged Area Redevelopment Project, Series 1998A, 5.250%, 5/01/23 - AMBAC Insured 3,500 La Quinta Redevelopment Agency, California, Tax Allocation 9/11 at 102.00 AAA 3,649,835 Bonds, Redevelopment Project Area 1, Series 2001, 5.100%, 9/01/31 - AMBAC Insured 3,400 La Quinta Redevelopment Agency, California, Tax Allocation 9/12 at 102.00 AAA 3,604,578 Bonds, Redevelopment Project Area 1, Series 2002, 5.000%, 9/01/22 - AMBAC Insured 51 Nuveen Insured California Dividend Advantage Municipal Fund (NKL) (continued) Portfolio of INVESTMENTS February 28, 2005 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED (continued) $ 1,460 Los Angeles, California, Certificates of Participation, 6/13 at 100.00 AAA $ 1,509,275 Municipal Improvement Corporation, Series 2003AW, 5.000%, 6/01/33 - AMBAC Insured 7,000 Los Angeles, California, Certificates of Participation, Real 4/12 at 100.00 AAA 7,368,620 Property Acquisition Program, Series 2002, 5.200%, 4/01/27 - AMBAC Insured 4,690 Los Angeles County Metropolitan Transportation Authority, 7/08 at 101.00 AAA 4,905,599 California, Proposition C Second Senior Lien Sales Tax Revenue Refunding Bonds, Series 1998A, 5.000%, 7/01/23 - AMBAC Insured 8,470 Ontario Redevelopment Financing Authority, California, 8/11 at 101.00 AAA 8,946,946 Lease Revenue Bonds, Capital Projects, Series 2001, 5.200%, 8/01/29 - AMBAC Insured 5,000 Palm Desert Financing Authority, California, Tax Allocation 4/12 at 102.00 AAA 5,239,800 Revenue Refunding Bonds, Project Area 1, Series 2002, 5.000%, 4/01/25 - MBIA Insured 4,475 Riverside County, California, Asset Leasing Corporate 6/12 at 101.00 AAA 4,751,466 Leasehold Revenue Bonds, Riverside County Hospital Project, Series 1997B, 5.000%, 6/01/19 - MBIA Insured 3,175 San Buenaventura, California, Certificates of Participation, 2/11 at 101.00 AAA 3,346,482 Series 2001C, 5.250%, 2/01/31 - AMBAC Insured 3,730 San Diego Redevelopment Agency, California, Subordinate 9/09 at 101.00 Baa2 3,838,618 Lien Tax Increment and Parking Revenue Bonds, Centre City Project, Series 2003B, 5.250%, 9/01/26 4,000 San Jose Financing Authority, California, Lease Revenue 9/11 at 100.00 AAA 4,288,040 Refunding Bonds, Convention Center Project, Series 2001F, 5.000%, 9/01/19 - MBIA Insured 1,000 Shasta Joint Powers Financing Authority, California, 4/13 at 100.00 AAA 1,073,850 Lease Revenue Bonds, County Administration Building Project, Series 2003A, 5.250%, 4/01/23 - MBIA Insured 2,160 Temecula Redevelopment Agency, California, Tax Allocation 8/08 at 102.00 AAA 2,260,872 Revenue Bonds, Redevelopment Project 1, Series 2002, 5.125%, 8/01/27 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 5.6% (3.8% OF TOTAL INVESTMENTS) 2,250 California Infrastructure Economic Development Bank, 7/13 at 100.00 AAA 2,333,723 First Lien Revenue Bonds, San Francisco Bay Area Toll Bridge, Series 2003A, 5.000%, 7/01/36 - AMBAC Insured 7,500 Foothill/Eastern Transportation Corridor Agency, California, 1/14 at 101.00 BBB- 6,135,900 Toll Road Revenue Refunding Bonds, Series 1999, 0.000%, 1/15/29 San Francisco Airports Commission, California, Revenue Bonds, San Francisco International Airport, Second Series 2003, Issue 29A: 2,185 5.250%, 5/01/16 (Alternative Minimum Tax) - FGIC Insured 5/13 at 100.00 AAA 2,357,134 2,300 5.250%, 5/01/17 (Alternative Minimum Tax) - FGIC Insured 5/13 at 100.00 AAA 2,469,625 ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED *** - 4.3% (2.9% OF TOTAL INVESTMENTS) 2,070 Fresno Unified School District, Fresno County, California, 8/10 at 102.00 AAA 2,237,567 General Obligation Bonds, Series 2002G, 5.125%, 8/01/26 - FSA Insured Fresno Unified School District, Fresno County, California, General Obligation Bonds, Series 2002B: 1,135 5.125%, 8/01/23 - FGIC Insured 8/10 at 102.00 AAA 1,226,878 1,190 5.125%, 8/01/24 - FGIC Insured 8/10 at 102.00 AAA 1,286,331 1,245 5.125%, 8/01/25 - FGIC Insured 8/10 at 102.00 AAA 1,345,783 1,255 5.125%, 8/01/26 - FGIC Insured 8/10 at 102.00 AAA 1,356,592 2,500 Metropolitan Water District of Southern California, Water 1/08 at 101.00 AAA 2,686,125 Revenue Bonds, Series 1997A, 5.000%, 7/01/30 (Pre-refunded to 1/01/08) - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 19.4% (13.1% OF TOTAL INVESTMENTS) 9,000 Anaheim Public Finance Authority, California, Revenue Bonds, 10/12 at 100.00 AAA 9,353,790 Electric System Distribution Facilities, Series 2002A, 5.000%, 10/01/27 - FSA Insured 10,000 California Pollution Control Financing Authority, Remarketed 4/11 at 102.00 AAA 10,808,400 Revenue Bonds, Pacific Gas and Electric Company, Series 1996A, 5.350%, 12/01/16 (Alternative Minimum Tax) - MBIA Insured (PLG1) 6,000 California Department of Water Resources, Power Supply 5/12 at 101.00 A2 6,444,720 Revenue Bonds, Series 2002A, 5.125%, 5/01/18 3,000 Los Angeles Department of Water and Power, California, 7/11 at 100.00 AAA 3,262,320 Power System Revenue Bonds, Series 2001A-1, 5.250%, 7/01/21 - FSA Insured 775 Los Angeles Department of Water and Power, California, 7/13 at 100.00 AAA 825,228 Power System Revenue Bonds, Series 2003A-2, 5.000%, 7/01/21 - MBIA Insured 6,000 Northern California Power Agency, Revenue Refunding Bonds, 7/08 at 101.00 AAA 6,329,160 Hydroelectric Project 1, Series 1998A, 5.200%, 7/01/32 - MBIA Insured 52 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES (continued) $ 3,000 Sacramento Municipal Utility District, California, Electric 8/11 at 100.00 AAA $ 3,102,810 Revenue Bonds, Series 2001N, 5.000%, 8/15/28 - MBIA Insured 5,630 Southern California Public Power Authority, Subordinate 7/12 at 100.00 AAA 5,847,037 Revenue Refunding Bonds, Transmission Project, Series 2002A, 4.750%, 7/01/19 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 16.8% (11.3% OF TOTAL INVESTMENTS) 3,000 California Department of Water Resources, Water System 12/12 at 100.00 AAA 3,221,550 Revenue Bonds, Central Valley Project, Series 2002X, 5.150%, 12/01/23 - FGIC Insured 6,100 East Bay Municipal Utility District, Alameda and Contra 6/11 at 100.00 AAA 6,330,031 Costa Counties, California, Water System Subordinated Revenue Bonds, Series 2001, 5.000%, 6/01/26 - MBIA Insured (PLG2) 9,000 Eastern Municipal Water District, California, Water and 7/11 at 100.00 AAA 9,252,810 Sewerage System Revenue Certificates of Participation, Series 2001B, 5.000%, 7/01/30 - FGIC Insured 4,500 Los Angeles County Sanitation Districts Financing Authority, 10/13 at 100.00 AAA 4,764,555 California, Senior Revenue Bonds, Capital Projects, Series 2003A, 5.000%, 10/01/23 - FSA Insured 3,605 Manteca Financing Authority, California, Sewerage Revenue 12/13 at 100.00 Aaa 3,687,374 Bonds, Series 2003B, 5.000%, 12/01/33 - MBIA Insured 9,185 Orange County Sanitation District, California, Certificates 8/13 at 100.00 AAA 9,500,505 of Participation, Series 2003, 5.000%, 2/01/33 - FGIC Insured Semitropic Water Storage District, Kern County, California, Water Banking Revenue Bonds, Series 2004A: 1,315 5.500%, 12/01/20 - XLCA Insured 12/14 at 100.00 AAA 1,471,286 1,415 5.500%, 12/01/21 - XLCA Insured 12/14 at 100.00 AAA 1,577,131 ------------------------------------------------------------------------------------------------------------------------------------ $ 335,010 Total Long-Term Investments (cost $330,799,083) - 148.3% 352,259,106 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 1.4% 3,299,517 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (49.7)% (118,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 237,558,623 ====================================================================================================================
FORWARD SWAP CONTRACTS OUTSTANDING AT FEBRUARY 28, 2005:
UNREALIZED NOTIONAL EFFECTIVE TERMINATION APPRECIATION AMOUNT DATE(2) DATE (DEPRECIATION) ------------------------------------------------------------------------------------------------------------------------------------ Agreement with Goldman Sachs dated December 6, 2004, to pay semi-annually the notional amount multiplied by 5.324% (annualized) and receive quarterly the notional amount multiplied by the three-month USD-LIBOR (United States Dollar-London Inter-Bank Offered Rates). $5,800,000 7/11/05 7/11/25 $(115,603) Agreement with JPMorgan dated January 11, 2005, to pay semi-annually the notional amount multiplied by 5.235% (annualized) and receive quarterly the notional amount multiplied by the three-month USD-LIBOR (United States Dollar-London Inter-Bank Offered Rates). 6,600,000 8/17/05 8/17/25 (46,915) Agreement with Merrill Lynch dated February 14, 2005, to pay semi-annually the notional amount multiplied by 4.886% (annualized) and receive quarterly the notional amount multiplied by the three-month USD-LIBOR (United States Dollar-London Inter-Bank Offered Rates). 6,000,000 8/24/05 8/24/25 217,760 ------------------------------------------------------------------------------------------------------------------------------------ $ 55,242 ====================================================================================================================================
At least 80% of the Fund's net assets (including net assets attributable to Preferred shares) are invested in municipal securities that are either covered by Original Issue Insurance, Secondary Market Insurance or Portfolio Insurance any of which ensure the timely payment of principal and interest. Up to 20% of the Fund's net assets (including net assets attributable to Preferred shares) may be invested in municipal securities that are (i) either backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities (also ensuring the timely payment of principal and interest), or (ii) municipal bonds that are rated, at the time of investment, within the four highest grades (Baa or BBB or better by Moody's, S&P or Fitch) or unrated but judged to be of comparable quality by the Adviser. (1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. (2) Effective date represents the date on which both the Fund and counterparty commence interest payment accruals on each forward swap contract. * 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. (PLG1) Portion of security, with an aggregate market value of $324,252, has been pledged to collateralize the net payment obligations under forward swap contracts. (PLG2) Portion of security, with an aggregate market value of $250,088, has been pledged to collateralize the net payment obligations under forward swap contracts. See accompanying notes to financial statements. 53 Nuveen Insured California Tax-Free Advantage Municipal Fund (NKX) Portfolio of INVESTMENTS February 28, 2005 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 2.1% (1.3% OF TOTAL INVESTMENTS) $ 1,625 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 BBB $ 1,868,636 Tobacco Settlement Asset-Backed Revenue Bonds, Series 2003A-2, 7.900%, 6/01/42 ------------------------------------------------------------------------------------------------------------------------------------ HEALTHCARE - 18.7% (12.5% OF TOTAL INVESTMENTS) 2,700 California Health Facilities Financing Authority, Revenue 12/09 at 101.00 A3 2,946,834 Bonds, Cedars-Sinai Medical Center, Series 1999A, 6.250%, 12/01/34 1,500 California Health Facilities Financing Authority, Revenue 11/08 at 101.00 AAA 1,539,450 Bonds, UCSF - Stanford Healthcare, Series 1998A, 5.000%, 11/15/31 - FSA Insured 1,800 California Infrastructure Economic Development Bank, 8/11 at 102.00 A 1,905,624 Revenue Bonds, Kaiser Hospital Assistance LLC, Series 2001A, 5.550%, 8/01/31 6,000 California Statewide Community Development Authority, No Opt. Call AAA 6,530,460 Revenue Refunding Bonds, Sherman Oaks Health, Series 1998A, 5.000%, 8/01/22 - AMBAC Insured 2,000 California Statewide Community Development Authority, 6/13 at 100.00 AAA 2,141,540 Hospital Revenue Bonds, Monterey Peninsula Hospital, Series 2003B, 5.250%, 6/01/23 - FSA Insured 1,260 Rancho Mirage Joint Powers Financing Authority, California, 7/14 at 100.00 A3 1,358,948 Revenue Bonds, Eisenhower Medical Center, Series 2004, 5.875%, 7/01/26 ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 5.8% (3.9% OF TOTAL INVESTMENTS) 1,000 ABAG Finance Authority for Non-Profit Corporations, 11/12 at 100.00 A 1,052,650 California, Insured Senior Living Revenue Bonds, Odd Fellows Home of California, Series 2003A, 5.200%, 11/15/22 2,000 California Health Facilities Financing Authority, Insured 1/13 at 100.00 A 2,100,080 Revenue Bonds, Northern California Retired Officers Community Corporation - Paradise Valley Estates, Series 2002, 5.250%, 1/01/26 1,815 California Statewide Community Development Authority, 11/13 at 100.00 A 1,908,436 Revenue Bonds, Jewish Home for the Aging, Series 2003, 5.000%, 11/15/18 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 47.2% (31.6% OF TOTAL INVESTMENTS) 1,000 Berryessa Union School District, Santa Clara County, 8/12 at 100.00 AAA 1,063,660 California, General Obligation Bonds, Series 2003C, 5.000%, 8/01/21 - FSA Insured 2,000 Butte-Glenn Community College District, Butte and Glenn 8/12 at 101.00 Aaa 2,097,280 Counties, California, General Obligation Bonds, Series 2002A, 5.000%, 8/01/26 - MBIA Insured California, General Obligation Refunding Bonds, Series 2002: 1,500 5.000%, 2/01/12 No Opt. Call A 1,633,905 3,750 5.000%, 4/01/27 - AMBAC Insured 4/12 at 100.00 AAA 3,886,800 3,000 5.250%, 4/01/30 - XLCA Insured 4/12 at 100.00 AAA 3,165,930 500 California, General Obligation Bonds, Series 2004, 4/14 at 100.00 A 530,120 5.250%, 4/01/34 450 Fremont Unified School District, Alameda County, California, 8/12 at 101.00 AAA 472,473 General Obligation Bonds, Series 2002A, 5.000%, 8/01/25 - FGIC Insured Hacienda La Puente Unified School District, Los Angeles County, California, General Obligation Bonds, Series 2003B: 4,500 5.000%, 8/01/26 - FSA Insured 8/13 at 100.00 AAA 4,718,880 2,030 5.000%, 8/01/27 - FSA Insured 8/13 at 100.00 AAA 2,121,452 2,000 Los Angeles, California, General Obligation Bonds, 9/12 at 100.00 AAA 2,117,960 Series 2002A, 5.000%, 9/01/22 - MBIA Insured 10,750 Los Angeles Unified School District, California, General 7/13 at 100.00 AAA 11,393,602 Obligation Bonds, Series 2003A, 5.000%, 7/01/22 - FSA Insured 1,000 Murrieta Valley Unified School District, Riverside County, 9/13 at 100.00 AAA 1,049,070 California, General Obligation Bonds, Series 2003A, 5.000%, 9/01/26 - FGIC Insured 3,000 San Diego Unified School District, California, General 7/10 at 100.00 AAA 3,206,850 Obligation Bonds, Election of 1998, Series 2000B, 5.125%, 7/01/22 - MBIA Insured 54 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL (continued) $ 3,855 San Rafael City High School District, Marin County, 8/12 at 100.00 AAA $ 4,003,726 California, General Obligation Bonds, Series 2003A, 5.000%, 8/01/28 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 45.1% (30.2% OF TOTAL INVESTMENTS) 550 Baldwin Park Public Financing Authority, California, Sales 8/13 at 102.00 BBB 571,632 Tax and Tax Allocation Bonds, Puente Merced Redevelopment Project, Series 2003, 5.250%, 8/01/21 2,025 Burbank Public Financing Authority, California, Revenue 12/13 at 100.00 AAA 2,192,447 Refunding Bonds, Golden State Redevelopment Project, Series 2003A, 5.250%, 12/01/22 - AMBAC Insured 4,000 California State Public Works Board, Lease Revenue Bonds, 12/12 at 100.00 AAA 4,152,040 Department of General Services, Capital East End Project, Series 2002A, 5.000%, 12/01/27 - AMBAC Insured 2,000 California State Public Works Board, Lease Revenue Bonds, 12/13 at 100.00 A- 2,231,440 Department of Corrections, Series 2003C, 5.500%, 6/01/16 1,610 Folsom Public Financing Authority, California, Special Tax 9/12 at 102.00 AAA 1,713,362 Revenue Bonds, Series 2004A, 5.000%, 9/01/21 - AMBAC Insured 5,540 Irvine Public Facilities and Infrastructure Authority, California, 3/05 at 103.00 AAA 5,754,564 Assessment Revenue Bonds, Series 2003C, 5.000%, 9/02/21 - AMBAC Insured 2,000 Los Angeles, California, Certificates of Participation, 6/13 at 100.00 AAA 2,067,500 Municipal Improvement Corporation, Series 2003AW, 5.000%, 6/01/33 - AMBAC Insured 1,770 Los Angeles Unified School District, California, Certificates 10/12 at 100.00 AAA 1,836,110 of Participation, Administration Building Project II, Series 2002C, 5.000%, 10/01/27 - AMBAC Insured 1,500 Los Osos, California, Improvement Bonds, Community 9/10 at 103.00 AAA 1,549,455 Services Wastewater Assessment District 1, Series 2002, 5.000%, 9/02/33 - MBIA Insured 1,825 Paramount Redevelopment Agency, California, Tax Allocation 8/13 at 100.00 AAA 1,944,300 Bonds, Redevelopment Project Area 1, Series 2003, 5.000%, 8/01/19 - MBIA Insured 1,165 Poway, California, Housing Revenue Bonds, Revenue Bonds, 5/13 at 102.00 BBB+ 1,166,305 Poinsettia Mobile Home Park, Series 2003, 5.000%, 5/01/23 San Buenaventura, California, Certificates of Participation, Golf Course Financing Project, Series 2002D: 3,000 5.000%, 2/01/27 - AMBAC Insured 2/12 at 100.00 AAA 3,103,620 3,300 5.000%, 2/01/32 - AMBAC Insured 2/12 at 100.00 AAA 3,396,129 1,200 San Diego Redevelopment Agency, California, Subordinate 9/09 at 101.00 Baa2 1,234,944 Lien Tax Increment and Parking Revenue Bonds, Centre City Project, Series 2003B, 5.250%, 9/01/26 1,220 San Jose Redevelopment Agency, California, Tax Allocation 8/10 at 101.00 AAA 1,253,318 Bonds, Merged Area Redevelopment Project, Series 2002, 5.000%, 8/01/32 - MBIA Insured 2,770 San Jose Financing Authority, California, Lease Revenue 6/12 at 100.00 AAA 2,848,723 Refunding Bonds, Civic Center Project, Series 2002B, 5.000%, 6/01/32 - AMBAC Insured 2,390 Solano County, California, Certificates of Participation, 11/12 at 100.00 AAA 2,570,254 Series 2002, 5.250%, 11/01/24 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 13.9% (9.3% OF TOTAL INVESTMENTS) 5,480 Bay Area Governments Association, California, BART SFO 8/12 at 100.00 AAA 5,698,488 Extension, Airport Premium Fare Revenue Bonds, Series 2002A, 5.000%, 8/01/26 - AMBAC Insured 2,000 Foothill/Eastern Transportation Corridor Agency, California, 1/10 at 100.00 BBB- 1,852,680 Toll Road Revenue Bonds, Series 1995A, 5.000%, 1/01/35 3,135 San Francisco Airports Commission, California, Revenue 5/08 at 101.00 AAA 3,266,795 Bonds, San Francisco International Airport, Second Series Issue 16B, 5.000%, 5/01/24 - FSA Insured 1,300 San Francisco Airports Commission, California, Revenue 5/10 at 101.00 AAA 1,353,339 Bonds, San Francisco International Airport, Second Series 2000, Issue 26B, 5.000%, 5/01/25 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 5.4% (3.6% OF TOTAL INVESTMENTS) 1,000 Anaheim Public Finance Authority, California, Second Lien 10/14 at 100.00 AAA 1,092,480 Electric Distribution Revenue Bonds, Series 2004, 5.250%, 10/01/21 - MBIA Insured 3,055 Los Angeles Department of Water and Power, California, 7/11 at 100.00 AAA 3,322,129 Power System Revenue Bonds, Series 2001A-1, 5.250%, 7/01/22 - FSA Insured 55 Nuveen Insured California Tax-Free Advantage Municipal Fund (NKX) (continued) Portfolio of INVESTMENTS February 28, 2005 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES (continued) $ 275 Los Angeles Department of Water and Power, California, 7/13 at 100.00 AAA $ 292,823 Power System Revenue Bonds, Series 2003A-2, 5.000%, 7/01/21 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 11.4% (7.6% OF TOTAL INVESTMENTS) 1,335 Manteca Financing Authority, California, Sewerage Revenue 12/13 at 100.00 Aaa 1,365,505 Bonds, Series 2003B, 5.000%, 12/01/33 - MBIA Insured San Diego Public Facilities Financing Authority, California, Subordinate Lien Water Revenue Bonds, Series 2002: 3,000 5.000%, 8/01/22 - MBIA Insured 8/12 at 100.00 AAA 3,176,160 2,500 5.000%, 8/01/23 - MBIA Insured 8/12 at 100.00 AAA 2,636,150 1,180 South Feather Water and Power Agency, California, Water 4/13 at 100.00 BBB 1,180,708 Revenue Certificates of Participation, Solar Photovoltaic Project, Series 2003, 5.375%, 4/01/24 1,600 Sunnyvale Financing Authority, California, Water and 10/11 at 100.00 AAA 1,658,512 Wastewater Revenue Bonds, Series 2001, 5.000%, 10/01/26 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ $ 124,760 Total Long-Term Investments (cost $125,705,146) - 149.6% 131,296,278 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 1.7% 1,467,985 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (51.3)% (45,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 87,764,263 ====================================================================================================================
FORWARD SWAP CONTRACTS OUTSTANDING AT FEBRUARY 28, 2005:
UNREALIZED NOTIONAL EFFECTIVE TERMINATION APPRECIATION AMOUNT DATE(2) DATE (DEPRECIATION) ------------------------------------------------------------------------------------------------------------------------------------ Agreement with Goldman Sachs dated December 6, 2004, to pay semi-annually the notional amount multiplied by 5.324% (annualized) and receive quarterly the notional amount multiplied by the three-month USD-LIBOR (United States Dollar-London Inter-Bank Offered Rates). $2,400,000 7/11/05 7/11/25 $(47,836) Agreement with JPMorgan dated January 11, 2005, to pay semi-annually the notional amount multiplied by 5.235% (annualized) and receive quarterly the notional amount multiplied by the three-month USD-LIBOR (United States Dollar-London Inter-Bank Offered Rates). 2,300,000 8/17/05 8/17/25 (16,349) Agreement with Merrill Lynch dated February 14, 2005, to pay semi-annually the notional amount multiplied by 4.886% (annualized) and receive quarterly the notional amount multiplied by the three-month USD-LIBOR (United States Dollar-London Inter-Bank Offered Rates). 2,700,000 8/24/05 8/24/25 97,992 ------------------------------------------------------------------------------------------------------------------------------------ $ 33,807 ====================================================================================================================================
At least 80% of the Fund's net assets (including net assets attributable to Preferred shares) are invested in municipal securities that are either covered by Original Issue Insurance, Secondary Market Insurance or Portfolio Insurance any of which ensure the timely payment of principal and interest. Up to 20% of the Fund's net assets (including net assets attributable to Preferred shares) may be invested in municipal securities that are (i) either backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities (also ensuring the timely payment of principal and interest), or (ii) municipal bonds that are rated, at the time of investment, within the four highest grades (Baa or BBB or better by Moody's, S&P or Fitch) or unrated but judged to be of comparable quality by the Adviser. (1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. (2) Effective date represents the date on which both the Fund and counterparty commence interest payment accruals on each forward swap contract. * 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. See accompanying notes to financial statements. 56 Statement of ASSETS AND LIABILITIES February 28, 2005 (Unaudited)
INSURED INSURED CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA PREMIUM PREMIUM PREMIUM DIVIDEND INCOME INCOME 2 INCOME ADVANTAGE (NPC) (NCL) (NCU) (NAC) ------------------------------------------------------------------------------------------------------------------------------------ ASSETS Investments, at market value (cost $135,030,669, $269,491,940, $120,082,726 and $505,946,087, respectively) $147,339,003 $286,435,435 $127,200,217 $538,955,473 Cash -- 404,967 150,483 -- Receivables: Interest 2,284,388 3,635,109 1,540,329 7,703,629 Investments sold -- 140,000 -- 20,600 Forward swaps, at value -- -- -- -- Other assets 9,398 28,593 6,584 37,246 ------------------------------------------------------------------------------------------------------------------------------------ Total assets 149,632,789 290,644,104 128,897,613 546,716,948 ------------------------------------------------------------------------------------------------------------------------------------ LIABILITIES Cash overdraft 1,015,913 -- -- 2,004,884 Payable for investments purchased -- 2,477,974 267,262 -- Forward swaps, at value -- -- -- -- Accrued expenses: Management fees 73,562 141,112 63,796 157,367 Other 51,091 67,155 54,381 120,756 Preferred share dividends payable 13,762 21,676 12,779 17,735 ------------------------------------------------------------------------------------------------------------------------------------ Total liabilities 1,154,328 2,707,917 398,218 2,300,742 ------------------------------------------------------------------------------------------------------------------------------------ Preferred shares, at liquidation value 45,000,000 95,000,000 43,000,000 175,000,000 ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares $103,478,461 $192,936,187 $ 85,499,395 $369,416,206 ==================================================================================================================================== Common shares outstanding 6,446,694 12,713,231 5,774,216 23,412,013 ==================================================================================================================================== Net asset value per Common share outstanding (net assets applicable to Common shares, divided by Common shares outstanding) $ 16.05 $ 15.18 $ 14.81 $ 15.78 ==================================================================================================================================== NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF: ------------------------------------------------------------------------------------------------------------------------------------ Common shares, $.01 par value per share $ 64,467 $ 127,132 $ 57,742 $ 234,120 Paid-in surplus 89,219,480 176,175,463 78,361,540 332,503,040 Undistributed (Over-distribution of) net investment income 1,287,018 1,460,501 788,204 3,780,694 Accumulated net realized gain (loss) from investments and forward swaps 599,162 (1,770,404) (825,582) (111,034) Net unrealized appreciation of investments and forward swaps 12,308,334 16,943,495 7,117,491 33,009,386 ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares $103,478,461 $192,936,187 $ 85,499,395 $369,416,206 ==================================================================================================================================== Authorized shares: Common 200,000,000 200,000,000 Unlimited Unlimited Preferred 1,000,000 1,000,000 Unlimited Unlimited ====================================================================================================================================
See accompanying notes to financial statements. 57 Statement of ASSETS AND LIABILITIES February 28, 2005 (Unaudited) (continued)
INSURED INSURED CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA DIVIDEND DIVIDEND DIVIDEND TAX-FREE ADVANTAGE 2 ADVANTAGE 3 ADVANTAGE ADVANTAGE (NVX) (NZH) (NKL) (NKX) ------------------------------------------------------------------------------------------------------------------------------------ ASSETS Investments, at market value (cost $316,791,709, $522,719,732, $330,799,083 and $125,705,146, respectively) $332,565,169 $542,534,024 $352,259,106 $131,296,278 Cash -- -- -- 18,027 Receivables: Interest 4,377,159 7,683,148 4,097,824 1,468,775 Investments sold -- -- -- -- Forward swaps, at value -- -- 217,760 97,992 Other assets 16,010 14,639 13,905 9,529 ------------------------------------------------------------------------------------------------------------------------------------ Total assets 336,958,338 550,231,811 356,588,595 132,890,601 ------------------------------------------------------------------------------------------------------------------------------------ LIABILITIES Cash overdraft 223,719 2,242,066 706,286 -- Payable for investments purchased 195,307 -- -- -- Forward swaps, at value -- -- 162,518 64,185 Accrued expenses: Management fees 85,971 137,196 90,652 32,943 Other 49,771 77,132 50,190 24,284 Preferred share dividends payable 18,908 51,644 20,326 4,926 ------------------------------------------------------------------------------------------------------------------------------------ Total liabilities 573,676 2,508,038 1,029,972 126,338 ------------------------------------------------------------------------------------------------------------------------------------ Preferred shares, at liquidation value 110,000,000 187,000,000 118,000,000 45,000,000 ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares $226,384,662 $360,723,773 $237,558,623 $ 87,764,263 ==================================================================================================================================== Common shares outstanding 14,790,660 24,112,833 15,259,759 5,883,302 ==================================================================================================================================== Net asset value per Common share outstanding (net assets applicable to Common shares, divided by Common shares outstanding) $ 15.31 $ 14.96 $ 15.57 $ 14.92 ==================================================================================================================================== NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF: ------------------------------------------------------------------------------------------------------------------------------------ Common shares, $.01 par value per share $ 147,907 $ 241,128 $ 152,598 $ 58,833 Paid-in surplus 210,028,777 342,513,152 216,623,358 83,000,891 Undistributed (Over-distribution of) net investment income 1,879,513 2,814,393 1,086,211 (142,844) Accumulated net realized gain (loss) from investments and forward swaps (1,444,995) (4,659,192) (1,818,809) (777,556) Net unrealized appreciation of investments and forward swaps 15,773,460 19,814,292 21,515,265 5,624,939 ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares $226,384,662 $360,723,773 $237,558,623 $ 87,764,263 ==================================================================================================================================== Authorized shares: Common Unlimited Unlimited Unlimited Unlimited Preferred Unlimited Unlimited Unlimited Unlimited ====================================================================================================================================
See accompanying notes to financial statements. 58 Statement of OPERATIONS Six Months Ended February 28, 2005 (Unaudited)
INSURED INSURED CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA PREMIUM PREMIUM PREMIUM DIVIDEND INCOME INCOME 2 INCOME ADVANTAGE (NPC) (NCL) (NCU) (NAC) ------------------------------------------------------------------------------------------------------------------------------------ INVESTMENT INCOME $3,676,233 $6,989,251 $3,116,265 $13,539,506 ------------------------------------------------------------------------------------------------------------------------------------ EXPENSES Management fees 475,760 907,919 408,389 1,685,247 Preferred shares - auction fees 55,788 117,773 53,308 216,952 Preferred shares - dividend disbursing agent fees 4,959 9,917 4,959 9,917 Shareholders' servicing agent fees and expenses 5,383 8,689 4,185 3,503 Custodian's fees and expenses 17,181 32,915 13,708 52,365 Directors'/Trustees' fees and expenses 1,312 2,455 1,141 4,272 Professional fees 6,992 9,952 7,225 10,954 Shareholders' reports - printing and mailing expenses 5,142 11,656 5,462 14,385 Stock exchange listing fees 5,414 5,463 244 5,409 Investor relations expense 4,630 19,615 8,896 35,401 Other expenses 6,707 8,158 7,916 15,795 ------------------------------------------------------------------------------------------------------------------------------------ Total expenses before custodian fee credit and expense reimbursement 589,268 1,134,512 515,433 2,054,200 Custodian fee credit (2,395) (5,838) (3,529) (13,270) Expense reimbursement -- -- -- (673,481) ------------------------------------------------------------------------------------------------------------------------------------ Net expenses 586,873 1,128,674 511,904 1,367,449 ------------------------------------------------------------------------------------------------------------------------------------ Net investment income 3,089,360 5,860,577 2,604,361 12,172,057 ------------------------------------------------------------------------------------------------------------------------------------ REALIZED AND UNREALIZED GAIN (LOSS) Net realized gain (loss) from investments 627,472 213,776 224,411 (109,926) Net realized gain (loss) from forward swaps -- -- -- -- Change in net unrealized appreciation (depreciation) of investments (509,657) 975,535 1,701,344 6,084,583 Change in net unrealized appreciation (depreciation) of forward swaps -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------------ Net realized and unrealized gain 117,815 1,189,311 1,925,755 5,974,657 ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO PREFERRED SHAREHOLDERS From net investment income (248,102) (565,185) (273,244) (1,127,569) From accumulated net realized gains from investments (53,379) -- -- (64,137) ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Preferred shareholders (301,481) (565,185) (273,244) (1,191,706) ------------------------------------------------------------------------------------------------------------------------------------ Net increase in net assets applicable to Common shares from operations $2,905,694 $6,484,703 $4,256,872 $16,955,008 ====================================================================================================================================
See accompanying notes to financial statements. 59 Statement of OPERATIONS Six Months Ended February 28, 2005 (Unaudited) (continued)
INSURED INSURED CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA DIVIDEND DIVIDEND DIVIDEND TAX-FREE ADVANTAGE 2 ADVANTAGE 3 ADVANTAGE ADVANTAGE (NVX) (NZH) (NKL) (NKX) ------------------------------------------------------------------------------------------------------------------------------------ INVESTMENT INCOME $ 8,005,728 $13,013,295 $ 8,595,072 $3,150,045 ------------------------------------------------------------------------------------------------------------------------------------ EXPENSES Management fees 1,049,217 1,692,446 1,111,105 421,177 Preferred shares - auction fees 136,369 231,828 146,288 55,788 Preferred shares - dividend disbursing agent fees 9,917 9,917 9,917 4,959 Shareholders' servicing agent fees and expenses 1,585 2,539 1,403 680 Custodian's fees and expenses 30,666 51,346 38,185 15,107 Directors'/Trustees' fees and expenses 2,855 4,393 3,169 1,054 Professional fees 10,119 14,691 11,529 6,967 Shareholders' reports - printing and mailing expenses 13,997 19,657 14,027 6,258 Stock exchange listing fees 625 1,018 645 248 Investor relations expense 22,124 35,598 23,467 9,143 Other expenses 11,912 16,292 11,338 8,265 ------------------------------------------------------------------------------------------------------------------------------------ Total expenses before custodian fee credit and expense reimbursement 1,289,386 2,079,725 1,371,073 529,646 Custodian fee credit (15,511) (18,782) (8,434) (3,247) Expense reimbursement (498,095) (811,747) (528,139) (209,850) ------------------------------------------------------------------------------------------------------------------------------------ Net expenses 775,780 1,249,196 834,500 316,549 ------------------------------------------------------------------------------------------------------------------------------------ Net investment income 7,229,948 11,764,099 7,760,572 2,833,496 ------------------------------------------------------------------------------------------------------------------------------------ REALIZED AND UNREALIZED GAIN (LOSS) Net realized gain (loss) from investments 31,775 59,245 365,618 164,139 Net realized gain (loss) from forward swaps -- -- (1,845,219) (663,144) Change in net unrealized appreciation (depreciation) of investments 5,172,472 7,162,560 4,566,339 1,945,156 Change in net unrealized appreciation (depreciation) of forward swaps -- -- 1,056,618 394,932 ------------------------------------------------------------------------------------------------------------------------------------ Net realized and unrealized gain 5,204,247 7,221,805 4,143,356 1,841,083 ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO PREFERRED SHAREHOLDERS From net investment income (700,391) (1,235,151) (767,673) (306,044) From accumulated net realized gains from investments -- -- (45,704) -- ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Preferred shareholders (700,391) (1,235,151) (813,377) (306,044) ------------------------------------------------------------------------------------------------------------------------------------ Net increase in net assets applicable to Common shares from operations $11,733,804 $17,750,753 $11,090,551 $4,368,535 ====================================================================================================================================
See accompanying notes to financial statements. 60 Statement of CHANGES IN NET ASSETS (Unaudited)
INSURED CALIFORNIA INSURED CALIFORNIA CALIFORNIA PREMIUM PREMIUM INCOME (NPC) PREMIUM INCOME 2 (NCL) INCOME (NCU) --------------------------------- --------------------------------- --------------------------------- SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED 2/28/05 8/31/04 2/28/05 8/31/04 2/28/05 8/31/04 ------------------------------------------------------------------------------------------------------------------------------------ OPERATIONS Net investment income $ 3,089,360 $ 6,380,123 $ 5,860,577 $ 12,155,986 $ 2,604,361 $ 5,443,316 Net realized gain (loss) from investments 627,472 1,060,439 213,776 6,591,551 224,411 262,244 Net realized gain (loss) from forward swaps -- -- -- -- -- -- Change in net unrealized appreciation (depreciation) of investments (509,657) 3,379,499 975,535 127,122 1,701,344 4,594,174 Change in net unrealized appreciation (depreciation) of forward swaps -- -- -- -- -- -- Distributions to Preferred Shareholders: From net investment income (248,102) (324,673) (565,185) (727,279) (273,244) (329,173) From accumulated net realized gains from investments (53,379) (18,045) -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------------ Net increase in net assets applicable to Common shares from operations 2,905,694 10,477,343 6,484,703 18,147,380 4,256,872 9,970,561 ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income (3,075,822) (5,990,256) (5,795,689) (11,576,056) (2,529,106) (5,058,214) From accumulated net realized gains from investments (1,006,068) (339,859) -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Common shareholders (4,081,890) (6,330,115) (5,795,689) (11,576,056) (2,529,106) (5,058,214) ------------------------------------------------------------------------------------------------------------------------------------ CAPITAL SHARE TRANSACTIONS Common shares: Net proceeds from sale of shares -- -- -- -- -- -- Net proceeds from shares issued to shareholders due to reinvestment of distributions 36,956 43,490 212,342 282,847 -- -- Preferred shares offering costs -- -- -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from capital share transactions 36,956 43,490 212,342 282,847 -- -- ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares (1,139,240) 4,190,718 901,356 6,854,171 1,727,766 4,912,347 Net assets applicable to Common shares at the beginning of period 104,617,701 100,426,983 192,034,831 185,180,660 83,771,629 78,859,282 ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares at the end of period $103,478,461 $104,617,701 $192,936,187 $192,034,831 $85,499,395 $83,771,629 ==================================================================================================================================== Undistributed (Over-distribution of) net investment income at the end of period $ 1,287,018 $ 1,521,582 $ 1,460,501 $ 1,960,798 $ 788,204 $ 986,193 ====================================================================================================================================
See accompanying notes to financial statements. 61 Statement of CHANGES IN NET ASSETS (Unaudited) (continued)
CALIFORNIA CALIFORNIA CALIFORNIA DIVIDEND ADVANTAGE (NAC) DIVIDEND ADVANTAGE 2 (NVX) DIVIDEND ADVANTAGE 3 (NZH) --------------------------------- --------------------------------- --------------------------------- SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED 2/28/05 8/31/04 2/28/05 8/31/04 2/28/05 8/31/04 ------------------------------------------------------------------------------------------------------------------------------------ OPERATIONS Net investment income $ 12,172,057 $ 24,522,028 $ 7,229,948 $ 14,625,012 $ 11,764,099 $ 23,526,062 Net realized gain (loss) from investments (109,926) 3,065,461 31,775 734,631 59,245 (325,341) Net realized gain (loss) from forward swaps -- -- -- -- -- -- Change in net unrealized appreciation (depreciation) of investments 6,084,583 14,927,705 5,172,472 10,663,642 7,162,560 21,760,890 Change in net unrealized appreciation (depreciation) of forward swaps -- -- -- -- -- -- Distributions to Preferred Shareholders: From net investment income (1,127,569) (1,400,301) (700,391) (861,160) (1,235,151) (1,597,236) From accumulated net realized gains from investments (64,137) -- -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------------ Net increase in net assets applicable to Common shares from operations 16,955,008 41,114,893 11,733,804 25,162,125 17,750,753 43,364,375 ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income (11,518,709) (22,967,185) (6,744,542) (13,489,082) (10,416,745) (20,833,489) From accumulated net realized gains from investments (1,086,300) -- -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Common shareholders (12,605,009) (22,967,185) (6,744,542) (13,489,082) (10,416,745) (20,833,489) ------------------------------------------------------------------------------------------------------------------------------------ CAPITAL SHARE TRANSACTIONS Common shares: Net proceeds from sale of shares -- -- -- -- -- -- Net proceeds from shares issued to shareholders due to reinvestment of distributions -- -- -- -- -- -- Preferred shares offering costs -- -- -- -- 29,546 -- ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from capital share transactions -- -- -- -- 29,546 -- ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares 4,349,999 18,147,708 4,989,262 11,673,043 7,363,554 22,530,886 Net assets applicable to Common shares at the beginning of period 365,066,207 346,918,499 221,395,400 209,722,357 353,360,219 330,829,333 ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares at the end of period $369,416,206 $365,066,207 $226,384,662 $221,395,400 $360,723,773 $353,360,219 ==================================================================================================================================== Undistributed (Over-distribution of) net investment income at the end of period $ 3,780,694 $ 4,254,915 $ 1,879,513 $ 2,094,498 $ 2,814,393 $ 2,702,190 ====================================================================================================================================
See accompanying notes to financial statements. 62
INSURED CALIFORNIA INSURED CALIFORNIA DIVIDEND ADVANTAGE (NKL) TAX-FREE ADVANTAGE (NKX) --------------------------------- --------------------------------- SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED 2/28/05 8/31/04 2/28/05 8/31/04 ------------------------------------------------------------------------------------------------------------------------------------ OPERATIONS Net investment income $ 7,760,572 $ 15,590,731 $ 2,833,496 $ 5,658,576 Net realized gain (loss) from investments 365,618 657,530 164,139 40,760 Net realized gain (loss) from forward swaps (1,845,219) -- (663,144) -- Change in net unrealized appreciation (depreciation) of investments 4,566,339 13,017,888 1,945,156 5,191,150 Change in net unrealized appreciation (depreciation) of forward swaps 1,056,618 (1,001,377) 394,932 (361,125) Distributions to Preferred Shareholders: From net investment income (767,673) (854,403) (306,044) (347,495) From accumulated net realized gains from investments (45,704) (143,985) -- -- ------------------------------------------------------------------------------------------------------------------------------------ Net increase in net assets applicable to Common shares from operations 11,090,551 27,266,384 4,368,535 10,181,866 ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income (6,958,448) (13,916,900) (2,612,186) (5,329,761) From accumulated net realized gains from investments (759,922) (1,910,520) -- -- ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Common shareholders (7,718,370) (15,827,420) (2,612,186) (5,329,761) ------------------------------------------------------------------------------------------------------------------------------------ CAPITAL SHARE TRANSACTIONS Common shares: Net proceeds from sale of shares -- (1,575) -- -- Net proceeds from shares issued to shareholders due to reinvestment of distributions -- -- -- 15,233 Preferred shares offering costs (54) (1,401) -- -- ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from capital share transactions (54) (2,976) -- 15,233 ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares 3,372,127 11,435,988 1,756,349 4,867,338 Net assets applicable to Common shares at the beginning of period 234,186,496 222,750,508 86,007,914 81,140,576 ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares at the end of period $237,558,623 $234,186,496 $87,764,263 $86,007,914 ==================================================================================================================================== Undistributed (Over-distribution of) net investment income at the end of period $ 1,086,211 $ 1,051,760 $ (142,844) $ (58,110) ====================================================================================================================================
See accompanying notes to financial statements. 63 Notes to FINANCIAL STATEMENTS(Unaudited) 1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES The California funds (the "Funds") covered in this report and their corresponding Common share stock exchange symbols are Nuveen Insured California Premium Income Municipal Fund, Inc. (NPC), Nuveen Insured California Premium Income Municipal Fund 2, Inc. (NCL), Nuveen California Premium Income Municipal Fund (NCU), Nuveen California Dividend Advantage Municipal Fund (NAC), Nuveen California Dividend Advantage Municipal Fund 2 (NVX), Nuveen California Dividend Advantage Municipal Fund 3 (NZH), Nuveen Insured California Dividend Advantage Municipal Fund (NKL) and Nuveen Insured California Tax-Free Advantage Municipal Fund (NKX). Common shares of Insured California Premium Income (NPC), Insured California Premium Income 2 (NCL) and California Dividend Advantage (NAC) are traded on the New York Stock Exchange while Common shares of California Premium Income (NCU), California Dividend Advantage 2 (NVX), California Dividend Advantage 3 (NZH), Insured California Dividend Advantage (NKL) and Insured California Tax-Free Advantage (NKX) are traded on the American Stock Exchange. The Funds are registered under the Investment Company Act of 1940, as amended, as closed-end management investment companies. Each Fund seeks to provide current income exempt from both regular federal and California state income taxes, and in the case of Insured California Tax-Free Advantage (NKX) the alternative minimum tax applicable to individuals, by investing primarily in a diversified portfolio of municipal obligations issued by state and local government authorities within the state of California. The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements in accordance with U.S. generally accepted accounting principles. Investment 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, evaluations of anticipated cash flows or collateral and general market conditions. Prices of derivative investments are also provided by an independent pricing service approved by each Fund's Board of Directors/Trustees. If the pricing service is unable to supply a price for a derivative investment each Fund may use a market quote provided by a major broker/dealer in such investments. If it is determined that market prices for an investment are unavailable or inappropriate, the Board of Directors/Trustees of the Funds, or its designee, may establish a fair value for the investment. 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 on a when-issued or delayed delivery basis may have extended settlement periods. Any securities so purchased are subject to market fluctuation during this period. The Funds have instructed the custodian to segregate assets with a current value at least equal to the amount of the when-issued and delayed delivery purchase commitments. At February 28, 2005, Insured California Premium Income 2 (NCL), California Premium Income (NCU), and California Dividend Advantage 2 (NVX) had outstanding when-issued purchase commitments of $2,477,974, $267,262 and $195,307, respectively. There were no such outstanding purchase commitments in any of the other Funds. Investment Income Interest income, which includes the amortization of premiums and accretion of discounts for financial reporting purposes, is recorded on an accrual basis. Investment income also includes paydown gains and losses, if any. 64 Income Taxes Each Fund is a separate taxpayer for federal income tax purposes. Each Fund intends to distribute substantially all net investment income and net capital gains to shareholders and to otherwise comply with the requirements of Subchapter M of the Internal Revenue Code applicable to regulated investment companies. Therefore, no federal income tax provision is required. 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, and in the case of Insured California Tax-Free Advantage (NKX) the alternative minimum tax applicable to individuals, to retain such tax-exempt status when distributed to shareholders of the Funds. Net realized capital gains and ordinary income distributions paid by the Funds are subject to federal taxation. Dividends and Distributions to Common Shareholders Dividends from tax-exempt net investment income are declared monthly. 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. Distributions to Common shareholders of tax-exempt net investment income, net realized capital gains and/or market discount, if any, 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 U.S. generally accepted accounting principles. Preferred Shares The Funds have issued and outstanding Preferred shares, $25,000 stated value per share, as a means of effecting financial leverage. Each Fund's Preferred shares are issued in one or more Series. The dividend rate on each Series is determined every seven days, pursuant to a dutch auction process overseen by the auction agent, and is payable weekly at the end of each rate period. The number of Preferred shares outstanding, by Series and in total, for each Fund is as follows: INSURED INSURED CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA PREMIUM PREMIUM PREMIUM DIVIDEND INCOME INCOME 2 INCOME ADVANTAGE (NPC) (NCL) (NCU) (NAC) -------------------------------------------------------------------------------- Number of shares: Series M -- -- 1,720 -- Series T 1,800 1,900 -- -- Series TH -- 1,900 -- 3,500 Series F -- -- -- 3,500 -------------------------------------------------------------------------------- Total 1,800 3,800 1,720 7,000 ================================================================================ INSURED INSURED CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA DIVIDEND DIVIDEND DIVIDEND TAX-FREE ADVANTAGE 2 ADVANTAGE 3 ADVANTAGE ADVANTAGE (NVX) (NZH) (NKL) (NKX) -------------------------------------------------------------------------------- Number of shares: Series M 2,200 3,740 -- -- Series T -- -- 2,360 -- Series TH -- 3,740 -- 1,800 Series F 2,200 -- 2,360 -- -------------------------------------------------------------------------------- Total 4,400 7,480 4,720 1,800 ================================================================================ Insurance Insured California Premium Income (NPC) and Insured California Premium Income 2 (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. Insured California Dividend Advantage (NKL) and Insured California Tax-Free Advantage (NKX) invest at least 80% of their net assets (including net assets applicable to Preferred shares) in municipal securities that are covered by insurance. Each Fund may also invest up to 20% of its net assets (including net assets applicable to Preferred shares) in municipal securities which are either (i) backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities, or (ii) municipal bonds that are rated, at the time of investment, within the four highest grades (Baa or BBB or better by Moody's, S&P or Fitch) or unrated but judged to be of comparable quality by the Adviser. 65 Notes to FINANCIAL STATEMENTS (Unaudited) (continued) 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' Common 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, in contrast, 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 Common share net asset value of the Funds 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. Forward Swap Transactions The Funds may invest in certain derivative financial instruments. The Funds' use of forward interest rate swap transactions is intended to mitigate the negative impact that an increase in long-term interest rates could have on Common share net asset value. Forward interest rate swap transactions involve each Fund's agreement with the counterparty to pay, in the future, a fixed rate payment in exchange for the counterparty paying the Fund a variable rate payment. The amount of the payment obligation is based on the notional amount of the forward swap contract. The Funds may close out a contract prior to the effective date at which point a realized gain or loss would be recognized. When a forward swap is terminated, it does not involve the delivery of securities or other underlying assets or principal, but rather is settled in cash. Each Fund intends, but is not obligated to, terminate its forward swaps before the effective date. Accordingly, the risk of loss with respect to the swap counterparty on such transactions is limited to the credit risk associated with a counterparty failing to honor its commitment to pay any realized gain to the Fund upon termination. To minimize such credit risk, all counterparties are required to pledge collateral daily (based on the daily valuation of each swap) on behalf of each Fund with a value approximately equal to the amount of any unrealized gain above a pre-determined threshold. Reciprocally, when any of the Funds have an unrealized loss on a swap contract, the Funds have instructed the custodian to pledge assets of the Funds as collateral with a value approximately equal to the amount of the unrealized loss above a pre-determined threshold. Collateral pledges are monitored and subsequently adjusted if and when the swap valuations fluctuate, either up or down, by at least the pre-determined threshold amount. Custodian Fee Credit Each Fund has an arrangement with the custodian bank whereby certain 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. Indemnifications Under the Funds' organizational documents, its Officers and Directors/Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Funds. In addition, in the normal course of business, the Funds enter into contracts that provide general indemnifications to other parties. The Funds' maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds that have not yet occurred. However, the Funds have not had prior claims or losses pursuant to these contracts and expect the risk of loss to be remote. Use of Estimates The preparation of financial statements in conformity with U.S. 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 applicable to Common shares from operations during the reporting period. Actual results may differ from those estimates. 66 2. FUND SHARES Transactions in Common shares were as follows:
INSURED CALIFORNIA INSURED CALIFORNIA CALIFORNIA PREMIUM INCOME (NPC) PREMIUM INCOME 2 (NCL) PREMIUM INCOME (NCU) ----------------------- ----------------------- ----------------------- SIX MONTHS SIX MONTHS SIX MONTHS ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED 2/28/05 8/31/04 2/28/05 8/31/04 2/28/05 8/31/04 --------------------------------------------------------------------------------------------------------- Common shares issued to shareholders due to reinvestment of distributions 2,232 2,632 13,855 18,275 -- -- --------------------------------------------------------------------------------------------------------- 2,232 2,632 13,855 18,275 -- -- ========================================================================================================= CALIFORNIA DIVIDEND CALIFORNIA DIVIDEND CALIFORNIA DIVIDEND ADVANTAGE (NAC) ADVANTAGE 2 (NVX) ADVANTAGE 3 (NZH) ----------------------- ----------------------- ----------------------- SIX MONTHS SIX MONTHS SIX MONTHS ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED 2/28/05 8/31/04 2/28/05 8/31/04 2/28/05 8/31/04 --------------------------------------------------------------------------------------------------------- Common shares issued to shareholders due to reinvestment of distributions -- -- -- -- -- -- --------------------------------------------------------------------------------------------------------- -- -- -- -- -- -- ========================================================================================================= INSURED INSURED CALIFORNIA DIVIDEND CALIFORNIA TAX-FREE ADVANTAGE (NKL) ADVANTAGE (NKX) ----------------------- ----------------------- SIX MONTHS SIX MONTHS ENDED YEAR ENDED ENDED YEAR ENDED 2/28/05 8/31/04 2/28/05 8/31/04 --------------------------------------------------------------------------------------------------------- Common shares issued to shareholders due to reinvestment of distributions -- -- -- 1,017 --------------------------------------------------------------------------------------------------------- -- -- -- 1,017 =========================================================================================================
3. SECURITIES TRANSACTIONS Purchases and sales (including maturities) of investments in long-term municipal securities during the six months ended February 28, 2005, were as follows: INSURED INSURED CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA PREMIUM PREMIUM PREMIUM DIVIDEND INCOME INCOME 2 INCOME ADVANTAGE (NPC) (NCL) (NCU) (NAC) -------------------------------------------------------------------------------- Purchases $9,614,266 $16,505,089 $8,465,581 $8,947,895 Sales and maturities 9,192,565 11,480,255 8,147,420 6,533,188 ================================================================================ INSURED INSURED CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA DIVIDEND DIVIDEND DIVIDEND TAX-FREE ADVANTAGE 2 ADVANTAGE 3 ADVANTAGE ADVANTAGE (NVX) (NZH) (NKL) (NKX) -------------------------------------------------------------------------------- Purchases $11,585,173 $12,142,166 $5,790,443 $1,955,360 Sales and maturities 4,720,555 7,185,605 7,297,963 2,543,782 ================================================================================ 67 Notes to FINANCIAL STATEMENTS (Unaudited) (continued) 4. INCOME TAX INFORMATION The following information is presented on an income tax basis. Differences between amounts for financial statement and federal income tax purposes are primarily due to the treatment of paydown gains and losses on investments, timing differences in recognizing income on taxable market discount securities and timing differences in recognizing certain gains and losses on security transactions. At February 28, 2005, the cost of investments was as follows: INSURED INSURED CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA PREMIUM PREMIUM PREMIUM DIVIDEND INCOME INCOME 2 INCOME ADVANTAGE (NPC) (NCL) (NCU) (NAC) -------------------------------------------------------------------------------- Cost of investments $134,902,054 $269,323,688 $120,028,637 $505,758,787 ================================================================================ INSURED INSURED CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA DIVIDEND DIVIDEND DIVIDEND TAX-FREE ADVANTAGE 2 ADVANTAGE 3 ADVANTAGE ADVANTAGE (NVX) (NZH) (NKL) (NKX) -------------------------------------------------------------------------------- Cost of investments $316,781,744 $522,711,821 $330,835,434 $125,699,611 ================================================================================ Gross unrealized appreciation and gross unrealized depreciation of investments at February 28, 2005, were as follows:
INSURED INSURED CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA PREMIUM PREMIUM PREMIUM DIVIDEND INCOME INCOME 2 INCOME ADVANTAGE (NPC) (NCL) (NCU) (NAC) ------------------------------------------------------------------------------------------------------------ Gross unrealized: Appreciation $12,507,267 $17,447,283 $7,344,495 $33,712,862 Depreciation (70,318) (335,536) (172,915) (516,176) ------------------------------------------------------------------------------------------------------------ Net unrealized appreciation of investments $12,436,949 $17,111,747 $7,171,580 $33,196,686 ============================================================================================================ INSURED INSURED CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA DIVIDEND DIVIDEND DIVIDEND TAX-FREE ADVANTAGE 2 ADVANTAGE 3 ADVANTAGE ADVANTAGE (NVX) (NZH) (NKL) (NKX) ------------------------------------------------------------------------------------------------------------ Gross unrealized: Appreciation $16,317,479 $20,605,366 $21,575,053 $5,697,750 Depreciation (534,054) (783,163) (151,381) (101,083) ------------------------------------------------------------------------------------------------------------ Net unrealized appreciation of investments $15,783,425 $19,822,203 $21,423,672 $5,596,667 ============================================================================================================
68 The tax components of undistributed net investment income and net realized gains at August 31, 2004, the Funds' last fiscal year end, were as follows:
INSURED INSURED CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA PREMIUM PREMIUM PREMIUM DIVIDEND INCOME INCOME 2 INCOME ADVANTAGE (NPC) (NCL) (NCU) (NAC) ----------------------------------------------------------------------------------------------------------- Undistributed net tax-exempt income * $1,758,461 $2,781,051 $1,358,334 $6,014,505 Undistributed net ordinary income ** 350,095 2,752 -- -- Undistributed net long-term capital gains 784,567 -- -- 1,149,328 =========================================================================================================== INSURED INSURED CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA DIVIDEND DIVIDEND DIVIDEND TAX-FREE ADVANTAGE 2 ADVANTAGE 3 ADVANTAGE ADVANTAGE (NVX) (NZH) (NKL) (NKX) ----------------------------------------------------------------------------------------------------------- Undistributed net tax-exempt income * $3,197,604 $4,445,944 $2,129,949 $388,572 Undistributed net ordinary income ** 17,650 -- -- -- Undistributed net long-term capital gains -- -- 617,799 -- ===========================================================================================================
* Undistributed net tax exempt income (on a tax basis) has not been reduced for the dividend declared on August 2, 2004, paid on September 1, 2004. ** Net ordinary income consists of taxable market discount income and net short-term capital gains, if any. The tax character of distributions paid during the fiscal year ended August 31, 2004, the Funds' last fiscal year end, was designated for purposes of the dividends paid deduction as follows:
INSURED INSURED CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA PREMIUM PREMIUM PREMIUM DIVIDEND INCOME INCOME 2 INCOME ADVANTAGE (NPC) (NCL) (NCU) (NAC) ------------------------------------------------------------------------------------------------------------ Distributions from net tax-exempt income $6,242,243 $12,293,836 $5,391,619 $24,320,851 Distributions from net ordinary income ** 59,796 -- -- -- Distributions from net long-term capital gains 357,419 -- -- -- ============================================================================================================ INSURED INSURED CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA DIVIDEND DIVIDEND DIVIDEND TAX-FREE ADVANTAGE 2 ADVANTAGE 3 ADVANTAGE ADVANTAGE (NVX) (NZH) (NKL) (NKX) ------------------------------------------------------------------------------------------------------------ Distributions from net tax-exempt income $14,342,456 $22,428,037 $ 14,773,957 $5,673,304 Distributions from net ordinary income ** -- -- 1,816,883 -- Distributions from net long-term capital gains -- -- 237,622 -- ============================================================================================================
** Net ordinary income consists of taxable market discount income and net short-term capital gains, if any. 69 Notes to FINANCIAL STATEMENTS (Unaudited) (continued) At August 31, 2004, the Funds' last fiscal year end, 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:
INSURED INSURED CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA PREMIUM PREMIUM DIVIDEND DIVIDEND TAX-FREE INCOME 2 INCOME ADVANTAGE 2 ADVANTAGE 3 ADVANTAGE (NCL) (NCU) (NVX) (NZH) (NKX) ------------------------------------------------------------------------------------------------- Expiration year: 2005 $ -- $1,049,994 $ -- $ -- $ -- 2006 -- -- -- -- -- 2007 -- -- -- -- -- 2008 -- -- -- -- -- 2009 1,544,084 -- -- -- -- 2010 440,510 -- -- -- -- 2011 -- -- -- 4,394,597 218,696 2012 -- -- 1,479,418 323,840 -- ------------------------------------------------------------------------------------------------- Total $1,984,594 $1,049,994 $1,479,418 $4,718,437 $218,696 =================================================================================================
Insured California Tax-Free Advantage (NKX) elected to defer net realized losses from investments incurred from November 1, 2003 through August 31, 2004 ("post-October losses"), in accordance with Federal income tax regulations. Post-October losses of $59,857 were treated as having arisen on the first day of the current fiscal year. 5. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES Effective January 1, 2005, Nuveen Advisory Corp. ("NAC"), the Funds' previous Adviser, and its affiliate, Nuveen Institutional Advisory Corp. ("NIAC"), were merged into Nuveen Asset Management ("NAM"), each wholly owned subsidiaries of Nuveen Investments, Inc. ("Nuveen"). As a result of the merger, NAM is now the Adviser to all funds previously advised by either NAC or NIAC. As approved by the Board of Directors/Trustees, effective August 1, 2004, a complex-wide management fee structure was adopted for all funds sponsored by the Adviser, or its predecessor and its affiliates. This fee structure separates each fund's management fee into two components - a complex-level component, based on the aggregate amount of all fund assets managed by the Adviser and a specific fund-level component, based only on the amount of assets within each individual fund. This pricing structure enables Nuveen fund shareholders to benefit from growth in the assets within each individual fund as well as from growth in the amount of complex-wide assets managed by the Adviser. Under no circumstances will this pricing structure result in a fund paying management fees at a rate higher than would otherwise have been applicable had the complex-wide management fee structure not been implemented. As of March 31, 2005, the complex-level fee rate was .1920%; that is, the funds' effective management fees were reduced by approximately .008%. Effective August 1, 2004, the annual fund-level fee, payable monthly, for each of the Funds is based upon the average daily net assets (including net assets attributable to Preferred shares) of each Fund as follows: AVERAGE DAILY INSURED CALIFORNIA PREMIUM INCOME (NPC) NET ASSETS (INCLUDING INSURED CALIFORNIA PREMIUM INCOME 2 (NCL) NET ASSETS ATTRIBUTABLE CALIFORNIA PREMIUM INCOME (NCU) TO PREFERRED SHARES) FUND-LEVEL FEE RATE -------------------------------------------------------------------------------- For the first $125 million .4500% For the next $125 million .4375 For the next $250 million .4250 For the next $500 million .4125 For the next $1 billion .4000 For the next $3 billion .3875 For net assets over $5 billion .3750 ================================================================================ 70 CALIFORNIA DIVIDEND ADVANTAGE (NAC) CALIFORNIA DIVIDEND ADVANTAGE 2 (NVX) AVERAGE DAILY CALIFORNIA DIVIDEND ADVANTAGE 3 (NZH) NET ASSETS (INCLUDING INSURED CALIFORNIA DIVIDEND ADVANTAGE (NKL) NET ASSETS ATTRIBUTABLE INSURED CALIFORNIA TAX-FREE ADVANTAGE (NKX) TO PREFERRED SHARES) FUND-LEVEL FEE RATE -------------------------------------------------------------------------------- For the first $125 million .4500% For the next $125 million .4375 For the next $250 million .4250 For the next $500 million .4125 For the next $1 billion .4000 For net assets over $2 billion .3750 ================================================================================ Effective August 1, 2004, the annual complex-level fee, payable monthly, which is additive to the fund-level fee, for all Nuveen sponsored funds in the U.S., is based on the aggregate amount of total fund assets managed as follows: COMPLEX-LEVEL COMPLEX-LEVEL ASSETS(1) FEE RATE -------------------------------------------------------------------------------- For the first $55 billion .2000% For the next $1 billion .1800 For the next $1 billion .1600 For the next $3 billion .1425 For the next $3 billion .1325 For the next $3 billion .1250 For the next $5 billion .1200 For the next $5 billion .1175 For the next $15 billion .1150 For Managed Assets over $91 billion (2) .1400 ================================================================================ (1) The complex-level fee component of the management fee for the funds is calculated based upon the aggregate Managed Assets ("Managed Assets" means the average daily net assets of each fund including assets attributable to all types of leverage used by the Nuveen funds) of Nuveen-sponsored funds in the U.S. (2) With respect to the complex-wide Managed Assets over $91 billion, the fee rate or rates that will apply to such assets will be determined at a later date. In the unlikely event that complex-wide Managed Assets reach $91 billion prior to a determination of the complex-level fee rate or rates to be applied to Managed Assets in excess of $91 billion, the complex-level fee rate for such complex-wide Managed Assets shall be .1400% until such time as a different rate or rates is determined. Each Fund paid through July 31, 2004, an annual management fee, payable monthly, at the rates set forth below, which were based upon the average daily net assets (including net assets attributable to Preferred shares) of each Fund as follows: AVERAGE DAILY INSURED CALIFORNIA PREMIUM INCOME (NPC) NET ASSETS (INCLUDING INSURED CALIFORNIA PREMIUM INCOME 2 (NCL) NET ASSETS ATTRIBUTABLE CALIFORNIA PREMIUM INCOME (NCU) TO PREFERRED SHARES) MANAGEMENT FEE RATE -------------------------------------------------------------------------------- For the first $125 million .6500% For the next $125 million .6375 For the next $250 million .6250 For the next $500 million .6125 For the next $1 billion .6000 For the next $3 billion .5875 For net assets over $5 billion .5750 ================================================================================ CALIFORNIA DIVIDEND ADVANTAGE (NAC) CALIFORNIA DIVIDEND ADVANTAGE 2 (NVX) AVERAGE DAILY CALIFORNIA DIVIDEND ADVANTAGE 3 (NZH) NET ASSETS (INCLUDING INSURED CALIFORNIA DIVIDEND ADVANTAGE (NKL) NET ASSETS ATTRIBUTABLE INSURED CALIFORNIA TAX-FREE ADVANTAGE (NKX) TO PREFERRED SHARES) MANAGEMENT FEE RATE -------------------------------------------------------------------------------- For the first $125 million .6500% For the next $125 million .6375 For the next $250 million .6250 For the next $500 million .6125 For the next $1 billion .6000 For net assets over $2 billion .5750 ================================================================================ 71 Notes to FINANCIAL STATEMENTS (Unaudited) (continued) 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 or its affiliates. The Board of Directors/Trustees has adopted a deferred compensation plan for independent Directors/Trustees that enables Directors/Trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from certain Nuveen advised Funds. Under the plan, deferred amounts are treated as though equal dollar amounts had been invested in shares of select Nuveen advised Funds. For the first ten years of California Dividend Advantage's (NAC) operations, the Adviser has agreed to reimburse the Fund, as a percentage of average daily net assets (including net assets attributable to Preferred shares), for fees and expenses in the amounts and for the time periods set forth below: YEAR ENDING YEAR ENDING JULY 31, JULY 31, -------------------------------------------------------------------------------- 1999* .30% 2005 .25% 2000 .30 2006 .20 2001 .30 2007 .15 2002 .30 2008 .10 2003 .30 2009 .05 2004 .30 ================================================================================ * From the commencement of operations. The Adviser has not agreed to reimburse California Dividend Advantage (NAC) for any portion of its fees and expenses beyond July 31, 2009. For the first ten years of California Dividend Advantage 2's (NVX) operations, the Adviser has agreed to reimburse the Fund, as a percentage of average daily net assets (including net assets attributable to Preferred shares), for fees and expenses in the amounts and for the time periods set forth below: YEAR ENDING YEAR ENDING MARCH 31, MARCH 31, -------------------------------------------------------------------------------- 2001* .30% 2007 .25% 2002 .30 2008 .20 2003 .30 2009 .15 2004 .30 2010 .10 2005 .30 2011 .05 2006 .30 ================================================================================ * From the commencement of operations. The Adviser has not agreed to reimburse California Dividend Advantage 2 (NVX) for any portion of its fees and expenses beyond March 31, 2011. For the first ten years of California Dividend Advantage 3's (NZH) operations, the Adviser has agreed to reimburse the Fund, as a percentage of average daily net assets (including net assets attributable to Preferred shares), for fees and expenses in the amounts and for the time periods set forth below: YEAR ENDING YEAR ENDING SEPTEMBER 30, SEPTEMBER 30, -------------------------------------------------------------------------------- 2001* .30% 2007 .25% 2002 .30 2008 .20 2003 .30 2009 .15 2004 .30 2010 .10 2005 .30 2011 .05 2006 .30 ================================================================================ * From the commencement of operations. 72 The Adviser has not agreed to reimburse California Dividend Advantage 3 (NZH) for any portion of its fees and expenses beyond September 30, 2011. For the first ten years of Insured California Dividend Advantage's (NKL) operations, the Adviser has agreed to reimburse the Fund, as a percentage of average daily net assets (including net assets attributable to Preferred shares), for fees and expenses in the amounts and for the time periods set forth below: YEAR ENDING YEAR ENDING MARCH 31, MARCH 31, -------------------------------------------------------------------------------- 2002* .30% 2008 .25% 2003 .30 2009 .20 2004 .30 2010 .15 2005 .30 2011 .10 2006 .30 2012 .05 2007 .30 ================================================================================ * From the commencement of operations. The Adviser has not agreed to reimburse Insured California Dividend Advantage (NKL) for any portion of its fees and expenses beyond March 31, 2012. For the first eight years of Insured California Tax-Free Advantage's (NKX) operations, the Adviser has agreed to reimburse the Fund, as a percentage of average daily net assets (including net assets attributable to Preferred shares), for fees and expenses in the amounts and for the time periods set forth below: YEAR ENDING YEAR ENDING NOVEMBER 30, NOVEMBER 30, -------------------------------------------------------------------------------- 2002* .32% 2007 .32% 2003 .32 2008 .24 2004 .32 2009 .16 2005 .32 2010 .08 2006 .32 ================================================================================ * From the commencement of operations. The Adviser has not agreed to reimburse Insured California Tax-Free Advantage (NKX) for any portion of its fees and expenses beyond November 30, 2010. 6. ANNOUNCEMENT REGARDING PARENT COMPANY OF ADVISER In early April, 2005, The St. Paul Travelers Companies, Inc. ("St. Paul Travelers"), which owned 79% of Nuveen, (A) completed a public offering of a substantial portion of its equity stake in Nuveen, (B) sold Nuveen $200 million of its Nuveen shares, (C) entered into an agreement with Nuveen to sell an additional $400 million of its Nuveen shares on a "forward" basis with payment for and settlement of these shares delayed for several months, and (D) entered into agreements with two unaffiliated investment banking firms to sell an amount equal to most or all of its remaining Nuveen shares for current payment but for future settlement. The settlement of transactions (C) and (D) above would likely be deemed to be an "assignment" (as defined in the 1940 Act) of the investment management agreements between the Funds and NAM, which would result in the automatic termination of each agreement under the 1940 Act. The Board of Directors/Trustees will consider approval of new ongoing investment management agreements for each Fund and the submission of those agreements for approval by each respective Fund's shareholders. Those agreements, if approved by a Fund's shareholders, would take effect upon such approval. There can be no assurance that these approvals will be obtained. 7. SUBSEQUENT EVENT - DISTRIBUTIONS TO COMMON SHAREHOLDERS The Funds declared Common share dividend distributions from their tax-exempt net investment income which were paid on April 1, 2005, to shareholders of record on March 15, 2005, as follows: INSURED INSURED CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA PREMIUM PREMIUM PREMIUM DIVIDEND INCOME INCOME 2 INCOME ADVANTAGE (NPC) (NCL) (NCU) (NAC) -------------------------------------------------------------------------------- Dividend per share $.0740 $.0730 $.0700 $.0820 ================================================================================ INSURED INSURED CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA DIVIDEND DIVIDEND DIVIDEND TAX-FREE ADVANTAGE 2 ADVANTAGE 3 ADVANTAGE ADVANTAGE (NVX) (NZH) (NKL) (NKX) -------------------------------------------------------------------------------- Dividend per share $.0760 $.0720 $.0760 $.0695 ================================================================================ 73 Financial HIGHLIGHTS (Unaudited) Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions ---------------------------------------------------------------- ------------------------------- Distributions Distributions from Net from Net Beginning Investment Capital Investment Capital Common Net Income to Gains to Income to Gains to Share Net Realized/ Preferred Preferred Common Common Net Asset Investment Unrealized Share- Share- Share- Share- Value Income Gain (Loss) holders+ holders+ Total holders holders Total ==================================================================================================================================== INSURED CALIFORNIA PREMIUM INCOME (NPC) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 8/31: 2005(a) $16.23 $ .48 $ .03 $(.04) $(.01) $ .46 $(.48) $(.16) $ (.64) 2004 15.59 .99 .68 (.05) -- 1.62 (.93) (.05) .98) 2003 16.17 .99 (.45) (.06) (.01) .47 (.97) (.08) (1.05) 2002 16.04 1.05 .03 (.09) -- .99 (.86) -- (.86) 2001 15.08 1.04 .99 (.21) -- 1.82 (.86) -- (.86) 2000 14.81 1.09 .30 (.24) -- 1.15 (.88) -- (.88) INSURED CALIFORNIA PREMIUM INCOME 2 (NCL) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 8/31: 2005(a) 15.12 .46 .10 (.04) -- .52 (.46) -- (.46) 2004 14.60 .96 .53 (.06) -- 1.43 (.91) -- (.91) 2003 15.08 .99 (.51) (.07) -- .41 (.89) -- (.89) 2002 15.01 1.02 (.02) (.10) -- .90 (.83) -- (.83) 2001 14.09 1.01 .91 (.22) -- 1.70 (.78) -- (.78) 2000 13.70 1.02 .41 (.24) -- 1.19 (.80) -- (.80) CALIFORNIA PREMIUM INCOME (NCU) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 8/31: 2005(a) 14.51 .45 .34 (.05) -- .74 (.44) -- (.44) 2004 13.66 .94 .85 (.06) -- 1.73 (.88) -- (.88) 2003 14.42 .96 (.78) (.07) -- .11 (.87) -- (.87) 2002 14.22 .99 .13 (.10) -- 1.02 (.82) -- (.82) 2001 13.34 1.00 .90 (.23) -- 1.67 (.79) -- (.79) 2000 13.19 1.03 .14 (.23) -- .94 (.79) -- (.79) ==================================================================================================================================== Total Returns -------------------- Based Offering on Costs and Ending Common Preferred Common Based Share Share Share Ending on Net Underwriting Net Asset Market Market Asset Discounts Value Value Value** Value** ============================================================================================= INSURED CALIFORNIA PREMIUM INCOME (NPC) --------------------------------------------------------------------------------------------- Year Ended 8/31: 2005(a) $-- $16.05 $16.4600 8.27% 2.82% 2004 -- 16.23 15.8100 11.80 10.64 2003 -- 15.59 15.0700 1.55 2.82 2002 -- 16.17 15.8500 6.73 6.47 2001 -- 16.04 15.6900 14.12 12.43 2000 -- 15.08 14.5625 .84 8.34 INSURED CALIFORNIA PREMIUM INCOME 2 (NCL) --------------------------------------------------------------------------------------------- Year Ended 8/31: 2005(a) -- 15.18 14.9900 1.75 3.45 2004 -- 15.12 15.1800 12.71 10.02 2003 -- 14.60 14.3200 2.69 2.71 2002 -- 15.08 14.8000 5.57 6.29 2001 -- 15.01 14.8300 11.99 12.45 2000 -- 14.09 14.0000 3.58 9.21 CALIFORNIA PREMIUM INCOME (NCU) --------------------------------------------------------------------------------------------- Year Ended 8/31: 2005(a) -- 14.81 14.2000 7.20 5.14 2004 -- 14.51 13.6700 12.04 12.94 2003 -- 13.66 13.0200 (.91) .69 2002 -- 14.42 14.0000 4.84 7.48 2001 -- 14.22 14.1700 12.84 12.92 2000 -- 13.34 13.3125 5.93 7.63 ============================================================================================= Ratios/Supplemental Data ------------------------------------------------------------------------------------------------- Before Credit/Reimbursement After Credit/Reimbursement*** ------------------------------- ------------------------------- Ratio of Net Ratio of Net Ratio of Investment Ratio of Investment Ending Expenses Income to Expenses Income to Net to Average Average to Average Average Assets Net Assets Net Assets Net Assets Net Assets Applicable Applicable Applicable Applicable Applicable Portfolio to Common to Common to Common to Common to Common Turnover Shares (000) Shares++ Shares++ Shares++ Shares++ Rate ============================================================================================================================== INSURED CALIFORNIA PREMIUM INCOME (NPC) ------------------------------------------------------------------------------------------------------------------------------ Year Ended 8/31: 2005(a) $103,478 1.13%* 5.95%* 1.13%* 5.95%* 6% 2004 104,618 1.17 6.17 1.16 6.17 25 2003 100,427 1.17 6.13 1.16 6.14 26 2002 104,137 1.21 6.65 1.19 6.66 30 2001 103,068 1.22 6.77 1.21 6.79 21 2000 96,903 1.25 7.65 1.24 7.66 27 INSURED CALIFORNIA PREMIUM INCOME 2 (NCL) ------------------------------------------------------------------------------------------------------------------------------ Year Ended 8/31: 2005(a) 192,936 1.18* 6.09* 1.17* 6.10* 4 2004 192,035 1.19 6.38 1.19 6.38 35 2003 185,181 1.20 6.53 1.19 6.54 22 2002 190,870 1.23 6.83 1.22 6.84 6 2001 189,633 1.24 7.01 1.24 7.02 18 2000 177,977 1.28 7.65 1.26 7.66 26 CALIFORNIA PREMIUM INCOME (NCU) ------------------------------------------------------------------------------------------------------------------------------ Year Ended 8/31: 2005(a) 85,499 1.22* 6.16* 1.21* 6.17* 6 2004 83,772 1.23 6.62 1.22 6.63 19 2003 78,859 1.24 6.72 1.24 6.72 24 2002 83,249 1.27 7.07 1.26 7.08 10 2001 82,067 1.32 7.36 1.30 7.38 18 2000 76,878 1.38 8.09 1.36 8.10 19 ============================================================================================================================== Preferred Shares at End of Period ---------------------------------------- Aggregate Liquidation Amount and Market Asset Outstanding Value Coverage (000) Per Share Per Share ====================================================================== INSURED CALIFORNIA PREMIUM INCOME (NPC) ---------------------------------------------------------------------- Year Ended 8/31: 2005(a) $45,000 $25,000 $82,488 2004 45,000 25,000 83,121 2003 45,000 25,000 80,793 2002 45,000 25,000 82,854 2001 45,000 25,000 82,260 2000 45,000 25,000 78,835 INSURED CALIFORNIA PREMIUM INCOME 2 (NCL) ---------------------------------------------------------------------- Year Ended 8/31: 2005(a) 95,000 25,000 75,773 2004 95,000 25,000 75,535 2003 95,000 25,000 73,732 2002 95,000 25,000 75,229 2001 95,000 25,000 74,903 2000 95,000 25,000 71,836 CALIFORNIA PREMIUM INCOME (NCU) ---------------------------------------------------------------------- Year Ended 8/31: 2005(a) 43,000 25,000 74,709 2004 43,000 25,000 73,704 2003 43,000 25,000 70,848 2002 43,000 25,000 73,400 2001 43,000 25,000 72,714 2000 43,000 25,000 69,696 ======================================================================
* Annualized. ** Total Investment Return on Market Value is the combination of changes in the market price per share and the effect of reinvested dividend income and reinvested capital gains distributions, if any, at the average price paid per share at the time of reinvestment. Total Return on Common Share Net Asset Value is the combination of changes in Common Share net asset value, reinvested dividend income at net asset value and reinvested capital gains distributions at net asset value, if any. Total returns are not annualized. *** After custodian fee credit and expense reimbursement, where applicable. + 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. (a) For the six months ended February 28, 2005. See accompanying notes to financial statements. 74-75 SPREAD Financial HIGHLIGHTS (Unaudited) (continued) Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions ---------------------------------------------------------------- ------------------------------- Distributions Distributions from Net from Net Beginning Investment Capital Investment Capital Common Net Income to Gains to Income to Gains to Share Net Realized/ Preferred Preferred Common Common Net Asset Investment Unrealized Share- Share- Share- Share- Value Income Gain (Loss) holders+ holders+ Total holders holders Total ==================================================================================================================================== CALIFORNIA DIVIDEND ADVANTAGE (NAC) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 8/31: 2005(e) $15.59 $ .52 $ .26 $(.05) $ -- $ .73 $(.49) $(.05) $ (.54) 2004 14.82 1.05 .76 (.06) -- 1.75 (.98) -- (.98) 2003 15.24 1.06 (.47) (.07) -- .52 (.94) -- (.94) 2002 15.13 1.07 -- (.10) -- .97 (.86) -- (.86) 2001 13.82 1.07 1.28 (.23) -- 2.12 (.81) -- (.81) 2000 13.33 1.07 .52 (.26) -- 1.33 (.84) -- (.84) CALIFORNIA DIVIDEND ADVANTAGE 2 (NVX) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 8/31: 2005(e) 14.97 .49 .36 (.05) -- .80 (.46) -- (.46) 2004 14.18 .99 .77 (.06) -- 1.70 (.91) -- (.91) 2003 14.79 1.00 (.62) (.07) -- .31 (.89) (.03) (.92) 2002 15.11 1.06 (.40) (.11) -- .55 (.87) -- (.87) 2001(a) 14.33 .34 .90 (.05) -- 1.19 (.29) -- (.29) CALIFORNIA DIVIDEND ADVANTAGE 3 (NZH) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 8/31: 2005(e) 14.65 .49 .30 (.05) -- .74 (.43) -- (.43) 2004 13.72 .98 .88 (.07) -- 1.79 (.86) -- (.86) 2003 14.33 .98 (.66) (.08) -- .24 (.86) -- (.86) 2002(b) 14.33 .83 .09 (.08) -- .84 (.72) -- (.72) INSURED CALIFORNIA DIVIDEND ADVANTAGE (NKL) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 8/31: 2005(e) 15.35 .51 .27 (.05) -- .73 (.46) (.05) (.51) 2004 14.60 1.02 .84 (.06) (.01) 1.79 (.91) (.13) (1.04) 2003 15.14 .99 (.49) (.07) (.01) .42 (.91) (.05) (.96) 2002(c) 14.33 .34 .92 (.03) -- 1.23 (.30) -- (.30) INSURED CALIFORNIA TAX-FREE ADVANTAGE (NKX) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 8/31: 2005(e) 14.62 .48 .31 (.05) -- .74 (.44) -- (.44) 2004 13.79 .96 .84 (.06) -- 1.74 (.91) -- (.91) 2003(d) 14.33 .64 (.33) (.04) -- .27 (.60) -- (.60) ==================================================================================================================================== Total Returns -------------------- Based Offering on Costs and Ending Common Preferred Common Based Share Share Share Ending on Net Underwriting Net Asset Market Market Asset Discounts Value Value Value** Value** ============================================================================================= CALIFORNIA DIVIDEND ADVANTAGE (NAC) --------------------------------------------------------------------------------------------- Year Ended 8/31: 2005(e) $ -- $15.78 $15.0100 3.71% 4.74% 2004 -- 15.59 15.0000 12.07 12.11 2003 -- 14.82 14.3000 4.79 3.37 2002 -- 15.24 14.5500 3.67 6.75 2001 -- 15.13 14.8900 15.06 15.85 2000 -- 13.82 13.7500 (2.18) 10.80 CALIFORNIA DIVIDEND ADVANTAGE 2 (NVX) --------------------------------------------------------------------------------------------- Year Ended 8/31: 2005(e) -- 15.31 14.0900 3.38 5.38 2004 -- 14.97 14.0800 13.60 12.11 2003 -- 14.18 13.2400 (.95) 2.16 2002 -- 14.79 14.2800 (.27) 3.90 2001(a) (.12) 15.11 15.2100 3.40 7.55 CALIFORNIA DIVIDEND ADVANTAGE 3 (NZH) --------------------------------------------------------------------------------------------- Year Ended 8/31: 2005(e) -- 14.96 13.6500 5.73 5.12 2004 -- 14.65 13.3300 11.97 13.36 2003 .01 13.72 12.7100 (3.20) 1.68 2002(b) (.12) 14.33 14.0000 (1.68) 5.32 INSURED CALIFORNIA DIVIDEND ADVANTAGE (NKL) --------------------------------------------------------------------------------------------- Year Ended 8/31: 2005(e) -- 15.57 14.6100 3.07 4.79 2004 -- 15.35 14.6700 12.54 12.53 2003 -- 14.60 14.0000 (.35) 2.70 2002(c) (.12) 15.14 15.0000 2.05 7.84 INSURED CALIFORNIA TAX-FREE ADVANTAGE (NKX) --------------------------------------------------------------------------------------------- Year Ended 8/31: 2005(e) -- 14.92 14.7400 7.09 5.15 2004 -- 14.62 14.1900 11.54 12.86 2003(d) (.21) 13.79 13.5600 (5.79) .34 ============================================================================================= Ratios/Supplemental Data ------------------------------------------------------------------------------------------------- Before Credit/Reimbursement After Credit/Reimbursement*** ------------------------------- ------------------------------- Ratio of Net Ratio of Net Ratio of Investment Ratio of Investment Ending Expenses Income to Expenses Income to Net to Average Average to Average Average Assets Net Assets Net Assets Net Assets Net Assets Applicable Applicable Applicable Applicable Applicable Portfolio to Common to Common to Common to Common to Common Turnover Shares (000) Shares++ Shares++ Shares++ Shares++ Rate ============================================================================================================================== CALIFORNIA DIVIDEND ADVANTAGE (NAC) ------------------------------------------------------------------------------------------------------------------------------ Year Ended 8/31: 2005(e) $369,416 1.12%* 6.29%* .75%* 6.66%* 1% 2004 365,066 1.14 6.38 .70 6.83 12 2003 346,918 1.15 6.44 .70 6.88 11 2002 356,821 1.18 6.76 .72 7.22 33 2001 354,197 1.19 7.03 .72 7.50 17 2000 323,326 1.24 7.93 .75 8.43 25 CALIFORNIA DIVIDEND ADVANTAGE 2 (NVX) ------------------------------------------------------------------------------------------------------------------------------ Year Ended 8/31: 2005(e) 226,385 1.16* 6.02* .70* 6.48* 1 2004 221,395 1.18 6.24 .72 6.70 13 2003 209,722 1.18 6.30 .73 6.75 40 2002 218,814 1.19 6.82 .73 7.28 32 2001(a) 223,440 1.05* 5.23* .62* 5.65* 40 CALIFORNIA DIVIDEND ADVANTAGE 3 (NZH) ------------------------------------------------------------------------------------------------------------------------------ Year Ended 8/31: 2005(e) 360,724 1.17* 6.15* .70* 6.61* 1 2004 353,360 1.20 6.32 .73 6.78 13 2003 330,829 1.20 6.33 .73 6.79 48 2002(b) 345,470 1.15* 6.01* .69* 6.47* 49 INSURED CALIFORNIA DIVIDEND ADVANTAGE (NKL) ------------------------------------------------------------------------------------------------------------------------------ Year Ended 8/31: 2005(e) 237,559 1.17* 6.15* .71* 6.60* 2 2004 234,186 1.18 6.28 .72 6.74 14 2003 222,751 1.18 6.00 .72 6.46 71 2002(c) 231,062 1.10* 4.98* .60* 5.47* 12 INSURED CALIFORNIA TAX-FREE ADVANTAGE (NKX) ------------------------------------------------------------------------------------------------------------------------------ Year Ended 8/31: 2005(e) 87,764 1.22* 6.06* .73* 6.55* 1 2004 86,008 1.23 6.17 .73 6.67 20 2003(d) 81,141 1.14* 5.25* .67* 5.72* 45 ============================================================================================================================== Preferred Shares at End of Period ---------------------------------------- Aggregate Liquidation Amount and Market Asset Outstanding Value Coverage (000) Per Share Per Share ====================================================================== CALIFORNIA DIVIDEND ADVANTAGE (NAC) ---------------------------------------------------------------------- Year Ended 8/31: 2005(e) $175,000 $25,000 $77,774 2004 175,000 25,000 77,152 2003 175,000 25,000 74,560 2002 175,000 25,000 75,974 2001 175,000 25,000 75,600 2000 175,000 25,000 71,189 CALIFORNIA DIVIDEND ADVANTAGE 2 (NVX) ---------------------------------------------------------------------- Year Ended 8/31: 2005(e) 110,000 25,000 76,451 2004 110,000 25,000 75,317 2003 110,000 25,000 72,664 2002 110,000 25,000 74,731 2001(a) 110,000 25,000 75,782 CALIFORNIA DIVIDEND ADVANTAGE 3 (NZH) ---------------------------------------------------------------------- Year Ended 8/31: 2005(e) 187,000 25,000 73,225 2004 187,000 25,000 72,241 2003 187,000 25,000 69,229 2002(b) 187,000 25,000 71,186 INSURED CALIFORNIA DIVIDEND ADVANTAGE (NKL) ---------------------------------------------------------------------- Year Ended 8/31: 2005(e) 118,000 25,000 75,330 2004 118,000 25,000 74,616 2003 118,000 25,000 72,193 2002(c) 118,000 25,000 73,954 INSURED CALIFORNIA TAX-FREE ADVANTAGE (NKX) ---------------------------------------------------------------------- Year Ended 8/31: 2005(e) 45,000 25,000 73,758 2004 45,000 25,000 72,782 2003(d) 45,000 25,000 70,078 ======================================================================
* Annualized. ** Total Investment Return on Market Value is the combination of changes in the market price per share and the effect of reinvested dividend income and reinvested capital gains distributions, if any, at the average price paid per share at the time of reinvestment. Total Return on Common Share Net Asset Value is the combination of changes in Common Share net asset value, reinvested dividend income at net asset value and reinvested capital gains distributions at net asset value, if any. Total returns are not annualized. *** After custodian fee credit and expense reimbursement, where applicable. + 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. (a) For the period March 27, 2001 (commencement of operations) through August 31, 2001. (b) For the period September 25, 2001 (commencement of operations) through August 31, 2002. (c) For the period March 25, 2002 (commencement of operations) through August 31, 2002. (d) For the period November 21, 2002 (commencement of operations) through August 31, 2003. (e) For the six months ended February 28, 2005. See accompanying notes to financial statements. 76-77 SPREAD Reinvest Automatically EASILY AND CONVENIENTLY Sidebar text: NUVEEN MAKES REINVESTING EASY. A PHONE CALL IS ALL IT TAKES TO SET UP YOUR REINVESTMENT ACCOUNT. NUVEEN CLOSED-END EXCHANGE-TRADED FUNDS DIVIDEND REINVESTMENT PLAN Your Nuveen Closed-End Exchange-Traded Fund allows you to conveniently reinvest dividends and/or capital gains distributions in additional fund shares. 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. Just like dividends or distributions in cash, there may be times when income or capital gains taxes may be payable on dividends or distributions that are reinvested. It is important to note that an automatic reinvestment plan does not ensure a profit, nor does it protect you against loss in a declining market. 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. 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 the 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. FLEXIBLE You may 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 reinvest whether your shares are registered in your name, or in the name of a brokerage firm, bank, or other nominee. Ask your investment advisor if his or her firm will participate on your behalf. 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. CALL TODAY TO START REINVESTING DIVIDENDS AND/OR DISTRIBUTIONS For more information on the Nuveen Automatic Reinvestment Plan or to enroll in or withdraw from the Plan, speak with your financial advisor or call us at (800) 257-8787. 78 Other Useful INFORMATION Effective Jan. 1, 2005, the asset management services and operations of Nuveen Advisory Corp. (NAC) and Nuveen Institutional Advisory Corp (NIAC) became part of Nuveen Asset Management (NAM). This internal consolidation is intended to simplify the delivery of services to the investment management clients of Nuveen Investments. It does not affect the investment objectives or portfolio management of any Fund. QUARTERLY PORTFOLIO OF INVESTMENTS AND PROXY VOTING INFORMATION Each Fund's (i) quarterly portfolio of investments, (ii) information regarding how the Funds voted proxies relating to portfolio securities held during the 12-month period ended June 30, 2004, and (iii) a description of the policies and procedures that the Funds used to determine how to vote proxies relating to portfolio securities are available without charge, upon request, by calling Nuveen Investments toll-free at (800) 257-8787 or on Nuveen's website at www.nuveen.com. You may also obtain this and other Fund information directly from the Securities and Exchange Commission ("SEC"). The SEC may charge a copying fee for this information. Visit the SEC on-line at http://www.sec.gov or in person at the SEC's Public Reference Room in Washington, D.C. Call the SEC at 1-202-942-8090 for room hours and operation. You may also request Fund information by sending an e-mail request to publicinfo@sec.gov or by writing to the SEC's Public References Section at 450 Fifth Street NW, Washington, D.C. 20549. GLOSSARY OF TERMS USED IN THIS REPORT AVERAGE ANNUAL TOTAL RETURN: This is a commonly used method to express an investment's performance over a particular, usually multi-year time period. It expresses the return that would have been necessary each year to equal the investment's actual cumulative performance (including change in NAV or market price and reinvested dividends and capital gains distributions, if any) over the time period being considered. AVERAGE EFFECTIVE MATURITY: The average of all the maturities of the bonds in a Fund's portfolio, computed by weighting each maturity date (the date the security comes due) by the market value of the security. This figure does not account for the likelihood of prepayments or the exercise of call provisions. LEVERAGE-ADJUSTED DURATION: Duration is a measure of the sensitivity of a bond or bond Fund's value to changes when interest rates change. Generally, the longer a bond or Fund's duration, the more the price of the bond or Fund will change as interest rates change. Leverage-adjusted duration takes into account the leveraging process for a Fund and therefore is longer than the duration of the Fund's portfolio of bonds. MARKET YIELD (ALSO KNOWN AS DIVIDEND YIELD OR CURRENT YIELD): An investment's current annualized dividend divided by its current market price. NET ASSET VALUE (NAV): A Fund's common share NAV per share is calculated by subtracting the liabilities of the Fund (including any MuniPreferred shares issued in order to leverage the Fund) from its total assets and then dividing the remainder by the number of shares outstanding. Fund NAVs are calculated at the end of each business day. TAXABLE-EQUIVALENT YIELD: The yield necessary from a fully taxable investment to equal, on an after-tax basis, the yield of a municipal bond investment. BOARD OF DIRECTORS/TRUSTEES Robert P. Bremner Lawrence H. Brown Jack B. Evans William C. Hunter David J. Kundert William J. Schneider Timothy R. Schwertfeger Judith M. Stockdale Eugene S. Sunshine FUND MANAGER Nuveen Asset Management 333 West Wacker Drive Chicago, IL 60606 CUSTODIAN State Street Bank & Trust Boston, MA TRANSFER AGENT AND SHAREHOLDER SERVICES State Street Bank & Trust Nuveen Funds P.O. Box 43071 Providence, RI 02940-3071 (800) 257-8787 LEGAL COUNSEL Chapman and Cutler LLP Chicago, IL INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM Ernst & Young LLP Chicago, IL 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 period covered by this report. Any future repurchases will be reported to shareholders in the next annual or semiannual report. 79 Nuveen Investments: SERVING Investors For GENERATIONS Photo of: 2 women looking at a photo album. Since 1898, financial advisors and their clients have relied on Nuveen Investments to provide dependable investment solutions. For the past century, Nuveen Investments has adhered to the belief that the best approach to investing is to apply conservative risk-management principles to help minimize volatility. Building on this tradition, we today offer a range of high quality equity and fixed-income solutions that are integral to a well-diversified core portfolio. Our clients have come to appreciate this diversity, as well as our continued adherence to proven, long-term investing principles. WE OFFER MANY DIFFERENT INVESTING SOLUTIONS FOR OUR CLIENTS' DIFFERENT NEEDS. Managing more than $115 billion in assets, Nuveen Investments offers access to a number of different asset classes and investing solutions through a variety of products. Nuveen Investments markets its capabilities under four distinct brands: Nuveen, a leader in fixed-income investments; NWQ, a leader in value-style equities; Rittenhouse, a leader in growth-style equities; and Symphony, a leading institutional manager of market-neutral alternative investment portfolios. FIND OUT HOW WE CAN HELP YOU REACH YOUR FINANCIAL GOALS. To learn more about the products and services Nuveen Investments offers, talk to your financial advisor, or call us at (800) 257-8787. Please read the information provided carefully before you invest. Be sure to obtain a prospectus, where applicable. Investors should consider the investment objective and policies, risk considerations, charges and expenses of the Fund carefully before investing. The prospectus contains this and other information relevant to an investment in the Fund. For a prospectus, please contact your securities representative or Nuveen Investments, 333 W. Wacker Dr., Chicago, IL 60606. Please read the prospectus carefully before you invest or send money. o Share prices Learn more o Fund details about Nuveen Funds at o Daily financial news WWW.NUVEEN.COM/ETF o Investor education o Interactive planning tools Logo: NUVEEN Investments ESA-B-0205D ITEM 2. CODE OF ETHICS. Not applicable to this filing. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. Not applicable to this filing. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. Not applicable to this filing. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. Not applicable to this filing. ITEM 6. SCHEDULE OF INVESTMENTS. See Schedule I in Item 1. ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable to this filing. ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable to this filing. ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. Not applicable. ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant's Board implemented after the registrant last provided disclosure in response to this Item. ITEM 11. CONTROLS AND PROCEDURES. (a) The registrant's principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the "1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of the controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (the "Exchange Act")(17 CFR 240.13a-15(b) or 240.15d-15(b)). (b) There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. ITEM 12. EXHIBITS. File the exhibits listed below as part of this Form. (a)(1) Any code of ethics, or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy the Item 2 requirements through filing of an exhibit: Not applicable to this filing. (a)(2) A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the 1940 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: Ex-99.CERT attached hereto. (a)(3) Any written solicitation to purchase securities under Rule 23c-1 under the 1940 Act (17 CFR 270.23c-1) sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons: Not applicable. (b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act, provide the certifications required by Rule 30a-2(b) under the 1940 Act (17 CFR 270.30a-2(b)); Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR 240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished pursuant to this paragraph will not be deemed "filed" for purposes of Section 18 of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of that section. Such certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Exchange Act, except to the extent that the registrant specifically incorporates it by reference. Ex-99.906 CERT attached hereto. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. (Registrant) Nuveen Insured California Premium Income Municipal Fund, Inc. -------------------------------------------------------------- By (Signature and Title)* /s/ Jessica R. Droeger ---------------------------------------------- Jessica R. Droeger Vice President and Secretary Date: May 6, 2005 ------------------------------------------------------------------- Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By (Signature and Title)* /s/ Gifford R. Zimmerman ---------------------------------------------- Gifford R. Zimmerman Chief Administrative Officer (principal executive officer) Date: May 6, 2005 ------------------------------------------------------------------- By (Signature and Title)* /s/ Stephen D. Foy ---------------------------------------------- Stephen D. Foy Vice President and Controller (principal financial officer) Date: May 6, 2005 ------------------------------------------------------------------- * Print the name and title of each signing officer under his or her signature.