nkx.htm
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 811-21212

Nuveen Insured California Tax-Free Advantage Municipal Fund
(Exact name of registrant as specified in charter)

Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
(Address of principal executive offices) (Zip code)

Kevin J. McCarthy
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: February 28

Date of reporting period: August 31, 2011

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.

 
 
 
 

 
 

 
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Table of Contents
 
Chairman’s Letter to Shareholders
4
Portfolio Manager’s Comments
5
Common Share Dividend and Share Price Information
12
Performance Overviews
14
Portfolios of Investments
22
Statement of Assets and Liabilities
67
Statement of Operations
69
Statement of Changes in Net Assets
71
Statement of Cash Flows
74
Financial Highlights
77
Notes to Financial Statements
90
Annual Investment Management Agreement Approval Process
107
Reinvest Automatically, Easily and Conveniently
115
Glossary of Terms Used in this Report
117
Other Useful Information
123

 
 

 
Chairman’s
Letter to Shareholders
 
 
Dear Shareholders,
 
The global economy continues to be weighed down by an unusual combination of pressures facing the larger developed economies. Japanese leaders continue to work through the economic aftereffects of the March 2011 earthquake and tsunami. Political leaders in Europe and the U.S. have resolved some of the near term fiscal problems, but the financial markets are not convinced that these leaders are able to address more complex longer term fiscal issues. Despite improved earnings and capital increases, the largest banks in these countries continue to be vulnerable to deteriorating mortgage portfolios and sovereign credit exposure, adding another source of uncertainty to the global financial system.
 
In the U.S., recent economic statistics indicate that the economic recovery may be losing momentum. Consumption, which represents about 70% of the gross domestic product, faces an array of challenges from seemingly intractable declines in housing values, increased energy costs and limited growth in the job market. The failure of Congress and the administration to agree on the debt ceiling increase on a timely basis and the deep divisions between the political parties over fashioning a balanced program to address growing fiscal imbalances that led to the recent S&P ratings downgrade add considerable uncertainty to the domestic economic picture.
 
On a more positive note, corporate earnings continue to hold up well and the municipal bond market is recovering from recent weakness as states and municipalities implement various programs to reduce their budgetary deficits. In addition, the Federal Reserve System has made it clear that it stands ready to take additional steps should the economic recovery falter. However, there are concerns that the Fed is approaching the limits of its resources to intervene in the economy.
 
These perplexing times highlight the importance of professional investment management. Your Nuveen investment team is working hard to develop an appropriate response to increased risk, and they continue to seek out opportunities created by stressful markets using proven investment disciplines designed to help your Fund achieve its investment objectives. On your behalf, we monitor their activities to assure that they maintain their investment disciplines.
 
As always, I encourage you to contact your financial consultant if you have any questions about your investment in a Nuveen Fund. On behalf of the other members of your Fund Board, we look forward to continuing to earn your trust in the months and years ahead.
 
Sincerely,
 
 
Robert P. Bremner
Chairman of the Board
October 21, 2011
 
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Portfolio Manager’s Comments
 
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)
 
Portfolio manager Scott Romans examines key investment strategies and the six-month performance of these Funds. Scott, who joined Nuveen in 2000, has managed NCU, NAC, NVX, NZH, NKL and NKX since 2003. He assumed portfolio management responsibility for NPC and NCL in 2005.
 
What key strategies were used to manage the California Funds during the six-month reporting period ended August 31, 2011?
 
During this reporting period, municipal bond prices generally rallied as yields declined across the municipal curve. The relative decline in yields was attributable in part to the continued depressed level of municipal bond issuance. Tax-exempt volume, which had been limited in 2010 by issuers’ extensive use of taxable Build America Bonds (BABs), continued to drift lower in 2011. Even though BABs were no longer an option for issuers (the BAB program expired at the end of 2010), some borrowers had accelerated issuance into 2010 in order to take advantage of the program’s favorable terms before its termination, fulfilling their capital program borrowing needs well into 2012. This reduced the need for many borrowers to come to market with new issues during this period. For the six months ended August 31, 2011, national municipal issuance was down 34% compared with the same period in 2010, while municipal issuance in California declined 37%. One indicator of the general lack of supply was the fact that, as of August 31, 2011, the state of California had not issued any tax-exempt bonds during 2011.
 
Despite the constrained issuance of tax-exempt municipal bonds and relatively lower yields, we continued to take a bottom-up approach to discovering undervalued sectors and individual credits with the potential to perform well over the long term. During this period, these California Funds found value in health care, where we were able to add to our holdings at attractive prices, and in new issues for charter schools. We also continued to actively add exposure to redevelopment agency (RDA) bonds, which fund programs to improve deteriorated, blighted and economically depressed areas in California. We remained very selective in our purchases in this area, evaluating bonds on a case by case basis and buying only those where our research indicated that we potentially would be compensated for taking on additional risk. In addition, in Funds where we sought to adjust duration, we purchased zero coupon bonds issued by local school districts at historically wide spreads. These bonds offered longer durations with very attractive yields relative to their credit quality. With both the RDA bonds and the local school district credits, we were able to discover attractive candidates for purchase in both the insured and uninsured segments of the market.
 
Certain statements in this report are forward-looking statements. Discussions of specific investments are for illustration only and are not intended as recommendations of individual investments. The forward-looking statements and other views expressed herein are those of the portfolio manager as of the date of this report. Actual future results or occurrences may differ significantly from those anticipated in any forward-looking statements, and the views expressed herein are subject to change at any time, due to numerous market and other factors. The Funds disclaim any obligation to update publicly or revise any forward-looking statements or views expressed herein.
 
Ratings shown are the highest rating given by one of the following national rating agencies: Standard & Poor’s Group, Moody’s Investor Services, Inc. or Fitch, Inc. Credit ratings are subject to change. AAA, AA, A, and BBB are investment grade ratings; BB, B, CCC, CC, C and D are below-investment grade ratings. Bonds backed by U.S. Government or agency securities are given an implied rating equal to the rating of such securities. Holdings designated N/R are not rated by a national rating agency.
 
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For the most part, we focused on purchasing longer maturity bonds during this period in order to take advantage of more attractive yields at the longer end of the municipal bond yield curve. Cash for new purchases during this period was generated largely by the proceeds from bond calls and maturing bonds, which we worked to redeploy to keep the Funds fully invested.
 
As of August 31, 2011, all of these Funds continued to use inverse floating rate securities. We employ inverse floaters as a form of leverage for a variety of reasons, including duration management, income enhancement and total return enhancement. As part of our duration management strategies, NCL also used derivatives (forward interest rate swaps) to reduce price volatility risk to movement in U.S. interest rates relative to the Fund’s benchmarks. During this period, the derivatives functioned as intended, and by period end, we had removed the derivatives from NCL.
 
How did the Funds perform?
 
Individual results for these Nuveen California Funds, as well as relevant index and peer group information, are presented in the accompanying table.
 
Average Annual Total Returns on Common Share Net Asset Value*
For periods ended 8/31/11
 
   
6-Month
 
1-Year
 
5-Year
 
10-Year
Uninsured Funds
                       
NCU
    11.96 %     2.91 %     4.73 %     5.67 %
NAC
    12.66 %     1.57 %     4.08 %     5.53 %
NVX
    10.65 %     2.27 %     4.67 %     5.57 %
NZH
    10.65 %     1.48 %     3.17 %     N/A
                                 
Standard & Poor’s (S&P) California Municipal Bond Index**
    7.33 %     2.68 %     4.39 %     4.81 %
Standard & Poor’s (S&P) National Municipal Bond Index**
    6.56 %     2.62 %     4.60 %     4.93 %
Lipper California Municipal Debt Classification Average**
    11.95 %     1.31 %     3.04 %     5.01 %
Insured Funds
                               
NPC
    13.18 %     3.25 %     4.94 %     5.34 %
NCL
    12.71 %     2.02 %     4.71 %     5.27 %
NKL
    11.44 %     2.78 %     4.89 %     N/A
NKX
    12.05 %     1.42 %     4.19 %     N/A
Standard & Poor’s (S&P) California Municipal Bond Index**
    7.33 %     2.68 %     4.39 %     4.81 %
Standard & Poor’s (S&P) Insured National Municipal Bond Index**
    7.16 %     2.61 %     4.61 %     4.97 %
Lipper Single-State Insured Municipal Debt Classification Average**
    9.77 %     2.20 %     4.88 %     5.46 %
 
For the six months ended August 31, 2011, the cumulative returns on common share net asset value (NAV) for all four of the uninsured Funds—NCU, NAC, NVX and NZH—exceeded the returns on the Standard & Poor’s (S&P) California Municipal Bond Index as well as the Standard & Poor’s (S&P) National Municipal Bond Index. NCU and NCA also outperformed the average return for the Lipper California Municipal Debt Classification Average, while NVX and NZH underperformed this Lipper average. For the same period, all four of the insured Funds—NPC, NCL, NKL and NKX—exceeded the returns on the S&P California
 
 
Past performance is not predictive of future results. Current performance may be higher or lower than 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.
   
*
6-month returns are cumulative; all other returns are annualized.
   
**
Refer to the Glossary of Terms Used in this Report for definitions.

6
 
Nuveen Investments
 
 
 

 
Municipal Bond Index, the S&P Insured National Municipal Bond Index and the Lipper Single-State Insured Municipal Debt Classification Average.
 
Key management factors that influenced the Funds’ returns during this period included duration and yield curve positioning, credit exposure and sector allocation. In addition, the use of leverage was an important positive factor during this period. The impact of leverage is discussed in more detail later in this report.
 
During this period, as yields across the municipal bond curve declined, municipal bonds with longer maturities generally outperformed the shorter maturity categories, with credits at the longest end of the yield curve posting the strongest returns. Among these Funds, NPC and NAC were the most advantageously positioned in terms of duration and yield curve, with overweights in the outperforming longer part of the yield curve and underexposure to the shorter end of the curve that did not perform as well. Overall, duration and yield curve positioning was a positive contributor to the performance of all of these Funds, although the net impact varied depending upon each Fund’s individual weightings along the yield curve.
 
Holdings that generally made positive contributions to the Funds’ returns during this period included zero coupon bonds and health care, transportation and education credits. The special tax, water and sewer and industrial development revenue sectors also outperformed the municipal market as a whole, while general obligation and other tax-supported bonds generally performed in line with the market during this period. NAC, in particular, benefited from its overweightings in health care and transportation. The insured Funds also were helped by their exposure to redevelopment agency bonds, especially NPC.
 
In contrast, pre-refunded bonds, which are often backed by U.S. Treasury securities, were among the poorest performing market segments during this period. The under-performance of these bonds can be attributed primarily to their shorter effective maturities and higher credit quality. Among the revenue sectors, resource recovery trailed the overall municipal market by the widest margin.
 
Credit exposure played a smaller role in performance during these six months, as bonds rated BBB, A and AA typically outperformed those rated AAA. In this environment, the Funds’ performance generally benefited from their allocations to lower quality credits.
 
IMPACT OF THE FUNDS’ LEVERAGE STRATEGIES ON PERFORMANCE
 
One important factor impacting the returns of all these Funds relative to the comparative indexes was the Funds’ use of leverage. The Funds use leverage because their managers believe that, over time, leveraging provides opportunities for additional income and total return for common shareholders. However, use of leverage also can expose common shareholders to additional volatility. For example, as the prices of securities held by a Fund decline, the negative impact of these valuation changes on common share net asset value and common shareholder total return is magnified by the use of leverage. Conversely, leverage may enhance common share returns during periods when the prices of securities
 
Nuveen Investments
 
7
 
 
 

 
held by a Fund generally are rising. Leverage made a positive contribution to the performance of these Funds over this reporting period.
 
RECENT DEVELOPMENTS REGARDING THE FUNDS’ REDEMPTION OF AUCTION RATE PREFERRED SHARES
 
Shortly after their respective inceptions, each of the Funds issued auction rate preferred shares (ARPS) to create structural leverage. As noted in past shareholder reports, the ARPS issued by many closed-end funds, including these Funds, have been hampered by a lack of liquidity since February 2008. Since that time, more ARPS have been submitted for sale in each of their regularly scheduled auctions than there have been offers to buy. In fact, offers to buy have been almost completely nonexistent since late February 2008. This means that these auctions have “failed to clear,” and that many, or all, of the ARPS shareholders who wanted to sell their shares in these auctions were unable to do so. This lack of liquidity in ARPS did not lower the credit quality of these shares, and ARPS shareholders unable to sell their shares continued to receive distributions at the “maximum rate” applicable to failed auctions, as calculated in accordance with the pre-established terms of the ARPS. In the recent market, with short term rates at multi-generational lows, those maximum rates also have been low.
 
One continuing implication for common shareholders from the auction failures is that each Fund’s cost of leverage likely has been incrementally higher at times than it otherwise might have been had the auctions continued to be successful. As a result, each Fund’s common share earnings likely have been incrementally lower at times than they otherwise might have been.
 
As noted in past shareholder reports, the Nuveen funds’ Board of Directors/Trustees authorized several methods that can be used separately or in combination to refinance a portion of the Nuveen funds’ outstanding ARPS. Some funds have utilized tender option bonds (TOBs), also known as inverse floating rate securities, for leverage purposes. The amount of TOBs that a fund may use varies according to the composition of each fund’s portfolio. Some funds have a greater ability to use TOBs than others. Some funds have issued Variable Rate Demand Preferred (VRDP) Shares or Variable MuniFund Term Preferred (VMTP) Shares, which are floating rate forms of preferred stock with a mandatory term redemption. Some funds have issued MuniFund Term Preferred (MTP) Shares, a fixed rate form of preferred stock with a mandatory redemption period of three to five years.
 
During 2010 and 2011, certain Nuveen leveraged closed-end funds (including NAC, NZH and NKX) received a demand letter from a law firm on behalf of purported holders of common shares of each such fund, alleging that Nuveen and the funds’ officers and Board of Directors/Trustees breached their fiduciary duties related to the redemption at par of the funds’ ARPS. In response, the Board established an ad hoc Demand Committee consisting of certain of its disinterested and independent Board members to investigate the claims. The Demand Committee retained independent counsel to assist it in conducting an extensive investigation. Based upon its investigation, the Demand Committee found that it was not in the best interests of each fund or its shareholders to take the actions
 
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suggested in the demand letters, and recommended that the full Board reject the demands made in the demand letters. After reviewing the findings and recommendation of the Demand Committee, the full Board of each fund unanimously adopted the Demand Committee’s recommendation.
 
Subsequently, 33 of the funds that received demand letters (including NKX) were named in a consolidated complaint as nominal defendants in a putative shareholder derivative action captioned Martin Safier, et al. v. Nuveen Asset Management, et al. that was filed in the Circuit Court of Cook County, Illinois, Chancery Division (the “Cook County Chancery Court”) on February 18, 2011 (the “Complaint”). The Complaint, filed on behalf of purported holders of each fund’s common shares, also name Nuveen Fund Advisors, Inc. as a defendant, together with current and former Officers and interested Director/Trustees of each of the funds (together with the nominal defendants, collectively, the “Defendants”). The Complaint contains the same basic allegations contained in the demand letters. The suits seek a declaration that the Defendants have breached their fiduciary duties, an order directing the Defendants not to redeem any ARPS at their liquidation value using fund assets, indeterminate monetary damages in favor of the funds and an award of plaintiffs’ costs and disbursements in pursuing the action. The Court has heard arguments on the funds’ motion to dismiss the suit, and has taken the matter under advisement. Nuveen Fund Advisors, Inc. believes that the Complaint is without merit, and is defending vigorously against these charges.
 
As of August 31, 2011, each of the Funds has redeemed all of their outstanding ARPS at liquidation value.
 
As of August 31, 2011, the Funds have issued and outstanding MTP Shares and VRDP Shares as shown in the accompanying tables.
 
MTP Shares
 
Fund
 
Series
 
MTP Shares Issued
 at Liquidation Value
 
Annual
Interest Rate
NYSE
Ticker
 
NCU
   
2015
 
$
35,250,000
   
2.00
%
 
NCU PrC
 
NVX
   
2014
 
$
42,846,300
   
2.35
%
 
NVX PrA
 
NVX
   
2015
 
$
55,000,000
   
2.05
%
 
NVX PrC
 
NZH
   
2014
 
$
27,000,000
   
2.35
%
 
NZH PrA
 
NZH
   
2014-1
 
$
46,294,500
   
2.25
%
 
NZH PrB
 
NZH
   
2015
 
$
86,250,000
   
2.95
%
 
NZH PrC
 
 
VRDP Shares
 
Fund
 
VRDP Shares Issued
at Liquidation Value
NPC
 
$
42,700,000
NCL
 
$
74,000,000
NAC
 
$
136,200,000
NKL
 
$
104,400,000
NKX
 
$
35,500,000
 
Nuveen Investments
 
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(Refer to Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies and Footnote 4 – Fund Shares for further details on MTP and VRDP Shares.)
 
As of October 5, 2011, after the close of this reporting period, all 84 of the Nuveen closed-end municipal funds that had issued ARPS, approximately $11.0 billion, have redeemed at liquidation value all of these shares.
 
For up-to-date information, please visit the Nuveen CEF Auction Rate Preferred Resource Center at: http://www.nuveen.com/arps.
 
Regulatory Matters
 
During May 2011, Nuveen Securities, LLC, known as Nuveen Investments, LLC, prior to April 30, 2011, entered into a settlement with the Financial Industry Regulatory Authority (FINRA) with respect to certain allegations regarding Nuveen-sponsored closed-end fund ARPS marketing brochures. As part of this settlement, Nuveen Securities, LLC neither admitted to nor denied FINRA’s allegations. Nuveen Securities, LLC is the broker-dealer subsidiary of Nuveen Investments.
 
The settlement with FINRA concludes an investigation that followed the widespread failure of auctions for ARPS and other auction rate securities, which generally began in mid-February 2008. In the settlement, FINRA alleged that certain marketing materials provided by Nuveen Securities, LLC were false and misleading. Nuveen Securities, LLC agreed to a censure and the payment of a $3 million fine.
 
RISK CONSIDERATIONS
 
Fund shares are not guaranteed or endorsed by any bank or other insured depository institution, and are not federally insured by the Federal Deposit Insurance Corporation. Past performance is no guarantee of future results. Fund common shares are subject to a variety of risks, including:
 
Investment Risk. The possible loss of the entire principal amount that you invest.
 
Price Risk. Shares of closed-end investment companies like these Funds frequently trade at a discount to their NAV. Your common shares at any point in time may be worth less than your original investment, even after taking into account the reinvestment of Fund dividends and distributions.
 
Leverage Risk. Each Fund’s use of leverage creates the possibility of higher volatility for the Fund’s per share NAV, market price, distributions and returns. There is no assurance that a Fund’s leveraging strategy will be successful.
 
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Tax Risk. The tax treatment of Fund distributions may be affected by new IRS interpretations of the Internal Revenue Code and future changes in tax laws and regulations.
 
Issuer Credit Risk. This is the risk that a security in a Fund’s portfolio will fail to make dividend or interest payments when due.
 
Interest Rate Risk. Fixed-income securities such as bonds, preferred, convertible and other debt securities will decline in value if market interest rates rise.
 
Reinvestment Risk. If market interest rates decline, income earned from a Fund’s portfolio may be reinvested at rates below that of the original bond that generated the income.
 
Call Risk or Prepayment Risk. Issuers may exercise their option to prepay principal earlier than scheduled, forcing a Fund to reinvest in lower-yielding securities.
 
Nuveen Investments
 
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Common Share Dividend and
Share Price Information
 
The monthly dividends of all eight Funds in this report remained stable throughout the six-month reporting period ended August 31, 2011.
 
All of the Funds in this report 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 August 31, 2011, all of the Funds in this report had positive UNII balances, based upon our best estimate, for tax purposes and positive UNII balances for financial statement purposes.
 
COMMON SHARE REPURCHASES AND SHARE PRICE INFORMATION
 
As of August 31, 2011, and the since inception of the Funds’ repurchase program, the following Funds have cumulatively repurchased and retired common shares as shown in the accompanying table. Since the inception of the Fund’s repurchase program, NAC and NKX have not redeemed any of their outstanding common shares.
 
Fund
 
Common Shares
Repurchased
and Retired
 
% of Outstanding
Common Shares
NPC
   
17,700
   
0.3
%
NCL
   
55,700
   
0.4
%
NCU
   
44,500
   
0.8
%
NAC
   
   
 
NVX
   
50,700
   
0.3
%
NZH
   
12,900
   
0.1
%
NKL
   
32,700
   
0.2
%
NKX
   
   
 
 
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During the six-month reporting period, the Funds did not repurchase any of their outstanding common shares.
 
As of August 31, 2011, the Funds’ common share prices were trading at (-) discounts to their common share NAVs as shown in the accompanying table.
 
     
8/31/11
(-)Discount
 
 
Six-Month Average
(-)Discount
NPC
   
(-)7.35%
 
 
(-)3.68%
NCL
   
(-)4.35%
 
 
(-)5.00%
NCU
   
(-)7.90%
 
 
(-)6.15%
NAC
   
(-)2.90%
 
 
(-)4.48%
NVX
   
(-)3.54%
 
 
(-)3.65%
NZH
   
(-)3.55%
 
 
(-)3.05%
NKL
   
(-)1.56%
 
 
(-)3.61%
NKX
   
(-)7.60%
 
 
(-)8.11%
 
Nuveen Investments
 
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NPC
 
Nuveen Insured California
Performance
 
Premium Income
OVERVIEW
 
Municipal Fund, Inc.
   
as of August 31, 2011
 

Fund Snapshot
       
Common Share Price
 
$
13.86
 
Common Share Net Asset Value (NAV)
 
$
14.96
 
Premium/(Discount) to NAV
   
-7.35
%
Market Yield
   
6.28
%
Taxable-Equivalent Yield1
   
9.62
%
Net Assets Applicable to Common Shares ($000)
 
$
96,374
 
         
Leverage
       
Structural Leverage
   
30.70
%
Effective Leverage
   
36.66
%

Average Annual Total Return
(Inception 11/19/92)
           
    On Share Price   On NAV
6-Month (Cumulative)
    7.92 %     13.18 %
1-Year
    -0.42 %     3.25 %
5-Year
    4.52 %     4.94 %
10-Year
    5.09 %     5.34 %

Portfolio Composition4
(as a % of total investments)
       
Tax Obligation/Limited
   
33.8
%
Tax Obligation/General
   
19.8
%
U.S. Guaranteed
   
18.5
%
Water and Sewer
   
15.2
%
Health Care
   
7.1
%
Other
   
5.6
%
         
Insurers4
(as a % of total Insured investments)
       
NPFG5
   
30.4
%
AMBAC
   
24.8
%
FGIC
   
19.1
%
AGM
   
16.5
%
AGC
   
7.2
%
SYNCORA GTY
   
2.0
%

 
Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this Fund’s Performance Overview page.
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 34.7%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower.
2
The Fund intends to invest at least 80% of its managed assets in municipal securities that are covered by insurance guaranteeing the timely payment of principal and interest. See Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies, Insurance for more information. At the end of the reporting period, 80% of the Fund’s total investments are invested in Insured securities.
3
Ratings shown are the highest rating given by one of the following national rating agencies: Standard & Poor’s Group, Moody’s Investor Services, Inc. or Fitch, Inc. Credit ratings are subject to change. AAA, AA, A, and BBB are investment grade ratings; BB, B, CCC, CC, C and D are below-investment grade ratings. Bonds backed by U.S. Government or agency securities are given an implied rating equal to the rating of such securities. Holdings designated N/R are not rated by a national rating agency.
4
Holdings are subject to change.
5
MBIA’s public finance subsidiary.
 
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NCL
 
Nuveen Insured California
Performance
 
Premium Income
OVERVIEW
 
Municipal Fund 2, Inc.
   
August 31, 2011
 

Fund Snapshot
       
Common Share Price
 
$
13.64
 
Common Share Net Asset Value (NAV)
 
$
14.26
 
Premium/(Discount) to NAV
   
-4.35
%
Market Yield
   
6.33
%
Taxable-Equivalent Yield1
   
9.69
%
Net Assets Applicable to Common Shares ($000)
 
$
180,610
 
         
Leverage
       
Structural Leverage
   
29.06
%
Effective Leverage
   
38.24
%

Average Annual Total Return
(Inception 3/18/93)
           
    On Share Price   On NAV
6-Month (Cumulative)
    13.26 %     12.71 %
1-Year
    1.78 %     2.02 %
5-Year
    5.39 %     4.71 %
10-Year
    5.19 %     5.27 %

Portfolio Composition4
(as a % of total investments)
       
Tax Obligation/Limited
   
41.8
%
Tax Obligation/General
   
22.0
%
Water and Sewer
   
14.4
%
Utilities
   
5.6
%
Transportation
   
4.1
%
Other
   
12.1
%
         
Insurers4
(as a % of total Insured investments)
       
AMBAC
   
29.6
%
AGM
   
21.4
%
FGIC
   
19.0
%
NPFG5
   
17.5
%
AGC
   
11.9
%
SYNCORA GTY
   
0.6
%

 
Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this Fund’s Performance Overview page.
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 34.7%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower.
2
The Fund intends to invest at least 80% of its managed assets in municipal securities that are covered by insurance guaranteeing the timely payment of principal and interest. See Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies, Insurance for more information. At the end of the reporting period, 90% of the Fund’s total investments are invested in Insured securities.
3
Ratings shown are the highest rating given by one of the following national rating agencies: Standard & Poor’s Group, Moody’s Investor Services, Inc. or Fitch, Inc. Credit ratings are subject to change. AAA, AA, A, and BBB are investment grade ratings; BB, B, CCC, CC, C and D are below-investment grade ratings. Bonds backed by U.S. Government or agency securities are given an implied rating equal to the rating of such securities. Holdings designated N/R are not rated by a national rating agency.
4
Holdings are subject to change.
5 MBIA’s public finance subsidiary.
 
Nuveen Investments
 
15
 
 
 

 
 
NCU
 
Nuveen California
Performance
 
Premium Income
OVERVIEW
 
Municipal Fund
   
as of August 31, 2011
 

Fund Snapshot
       
Common Share Price
 
$
12.94
 
Common Share Net Asset Value (NAV)
 
$
14.05
 
Premium/(Discount) to NAV
   
-7.90
%
Market Yield
   
6.72
%
Taxable-Equivalent Yield1
   
10.29
%
Net Assets Applicable to Common Shares ($000)
 
$
80,499
 
         
Leverage
       
Structural Leverage
   
30.45
%
Effective Leverage
   
38.82
%

Average Annual Total Return
(Inception 6/18/93)
           
    On Share Price   On NAV
6-Month (Cumulative)
    9.05 %     11.96 %
1-Year
    -1.96 %     2.91 %
5-Year
    4.46 %     4.73 %
10-Year
    5.25 %     5.67 %

Portfolio Composition3
(as a % of total investments)
       
Tax Obligation/Limited
   
30.2
%
Tax Obligation/General
   
18.5
%
Health Care
   
18.0
%
U.S. Guaranteed
   
8.9
%
Education and Civic Organizations
   
5.2
%
Utilities
   
5.1
%
Other
   
14.1
%

 
Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this Fund’s Performance Overview page.
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 34.7%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower.
2
Ratings shown are the highest rating given by one of the following national rating agencies: Standard & Poor’s Group, Moody’s Investor Services, Inc. or Fitch, Inc. Credit ratings are subject to change. AAA, AA, A, and BBB are investment grade ratings; BB, B, CCC, CC, C and D are below-investment grade ratings. Bonds backed by U.S. Government or agency securities are given an implied rating equal to the rating of such securities. Holdings designated N/R are not rated by a national rating agency.
3
Holdings are subject to change.
 
16
 
Nuveen Investments

 
 

 
 
NAC
 
Nuveen California
Performance
 
Dividend Advantage
OVERVIEW
 
Municipal Fund
   
as of August 31, 2011
 

Fund Snapshot
       
Common Share Price
 
$
13.41
 
Common Share Net Asset Value (NAV)
 
$
13.81
 
Premium/(Discount) to NAV
   
-2.90
%
Market Yield
   
6.67
%
Taxable-Equivalent Yield1
   
10.21
%
Net Assets Applicable to Common Shares ($000)
 
$
324,204
 
         
Leverage
       
Structural Leverage
   
29.58
%
Effective Leverage
   
35.42
%

Average Annual Total Return
(Inception 5/26/99)
           
    On Share Price   On NAV
6-Month (Cumulative)
    13.86 %     12.66 %
1-Year
    -0.13 %     1.57 %
5-Year
    3.47 %     4.08 %
10-Year
    5.73 %     5.53 %

Portfolio Composition3
(as a % of total investments)
       
Tax Obligation/Limited
   
25.0
%
Health Care
   
20.9
%
Tax Obligation/General
   
15.6
%
U.S. Guaranteed
   
10.3
%
Water and Sewer
   
8.5
%
Education and Civic Organizations
   
5.6
%
Other
   
14.1
%

 
Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this Fund’s Performance Overview page.
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 34.7%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower.
2
Ratings shown are the highest rating given by one of the following national rating agencies: Standard & Poor’s Group, Moody’s Investor Services, Inc. or Fitch, Inc. Credit ratings are subject to change. AAA, AA, A, and BBB are investment grade ratings; BB, B, CCC, CC, C and D are below-investment grade ratings. Bonds backed by U.S. Government or agency securities are given an implied rating equal to the rating of such securities. Holdings designated N/R are not rated by a national rating agency.
3
Holdings are subject to change.
 
Nuveen Investments
 
17
 
 
 

 
 
NVX
 
Nuveen California
Performance
 
Dividend Advantage
OVERVIEW
 
Municipal Fund 2
   
as of August 31, 2011


Fund Snapshot
       
Common Share Price
 
$
13.89
 
Common Share Net Asset Value (NAV)
 
$
14.40
 
Premium/(Discount) to NAV
   
-3.54
%
Market Yield
   
6.91
%
Taxable-Equivalent Yield1
   
10.58
%
Net Assets Applicable to Common Shares ($000)
 
$
212,375
 
         
Leverage
       
Structural Leverage
   
31.54
%
Effective Leverage
   
39.39
%

Average Annual Total Return
(Inception 3/27/01)
           
    On Share Price   On NAV
6-Month (Cumulative)
    12.16 %     10.65 %
1-Year
    0.53 %     2.27 %
5-Year
    4.93 %     4.67 %
10-Year
    5.51 %     5.57 %

Portfolio Composition3
(as a % of total investments)
       
Health Care
   
18.2
%
Tax Obligation/General
   
15.6
%
U.S. Guaranteed
   
13.8
%
Tax Obligation/Limited
   
11.6
%
Transportation
   
8.0
%
Water and Sewer
   
7.5
%
Education and Civic Organizations
   
7.0
%
Utilities
   
5.9
%
Other
   
12.4
%

 
Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this Fund’s Performance Overview page.
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 34.7%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower.
2
Ratings shown are the highest rating given by one of the following national rating agencies: Standard & Poor’s Group, Moody’s Investor Services, Inc. or Fitch, Inc. Credit ratings are subject to change. AAA, AA, A, and BBB are investment grade ratings; BB, B, CCC, CC, C and D are below-investment grade ratings. Bonds backed by U.S. Government or agency securities are given an implied rating equal to the rating of such securities. Holdings designated N/R are not rated by a national rating agency.
3
Holdings are subject to change.
 
18
 
Nuveen Investments
 
 
 

 
 
NZH
 
Nuveen California
Performance
 
Dividend Advantage
OVERVIEW
 
Municipal Fund 3
   
as of August 31, 2011
 

Fund Snapshot
       
Common Share Price
 
$
12.49
 
Common Share Net Asset Value (NAV)
 
$
12.95
 
Premium/(Discount) to NAV
   
-3.55
%
Market Yield
   
7.21
%
Taxable-Equivalent Yield1
   
11.04
%
Net Assets Applicable to Common Shares ($000)
 
$
312,425
 
         
Leverage
       
Structural Leverage
   
33.80
%
Effective Leverage
   
41.00
%

Average Annual Total Return
(Inception 9/25/01)
           
    On Share Price   On NAV
6-Month (Cumulative)
    11.04 %     10.65 %
1-Year
    -1.87 %     1.48 %
5-Year
    2.97 %     3.17 %
Since Inception
    4.50 %     5.05 %

Portfolio Composition3
(as a % of total investments)
       
Tax Obligation/Limited
   
29.2
%
Health Care
   
21.9
%
U.S. Guaranteed
   
10.8
%
Tax Obligation/General
   
7.6
%
Consumer Staples
   
5.3
%
Water and Sewer
   
5.1
%
Transportation
   
5.0
%
Education and Civic Organizations
   
4.4
%
Other
   
10.7
%

 
Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this Fund’s Performance Overview page.
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 34.7%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower.
2
Ratings shown are the highest rating given by one of the following national rating agencies: Standard & Poor’s Group, Moody’s Investor Services, Inc. or Fitch, Inc. Credit ratings are subject to change. AAA, AA, A, and BBB are investment grade ratings; BB, B, CCC, CC, C and D are below-investment grade ratings. Bonds backed by U.S. Government or agency securities are given an implied rating equal to the rating of such securities. Holdings designated N/R are not rated by a national rating agency.
3
Holdings are subject to change.
 
Nuveen Investments
 
19

 
 

 
 
NKL
 
Nuveen Insured California
Performance
 
Dividend Advantage
OVERVIEW
 
Municipal Fund
   
as of August 31, 2011


Fund Snapshot
       
Common Share Price
 
$
14.54
 
Common Share Net Asset Value (NAV)
 
$
14.77
 
Premium/(Discount) to NAV
   
-1.56
%
Market Yield
   
6.48
%
Taxable-Equivalent Yield1
   
9.92
%
Net Assets Applicable to Common Shares ($000)
 
$
225,316
 
         
Leverage
       
Structural Leverage
   
31.66
%
Effective Leverage
   
36.93
%

Average Annual Total Return
(Inception 3/25/02)
           
    On Share Price   On NAV
6-Month (Cumulative)
    15.54 %     11.44 %
1-Year
    2.83 %     2.78 %
5-Year
    4.66 %     4.89 %
Since Inception
    6.01 %     6.39 %
 
Portfolio Composition4
(as a % of total investments)
       
Tax Obligation/Limited
   
31.5
%
Tax Obligation/General
   
24.7
%
Water and Sewer
   
12.0
%
Utilities
   
9.9
%
Health Care
   
5.3
%
U.S. Guaranteed
   
4.6
%
Other
   
12.0
%

Insurers4
(as a % of total Insured investments)
       
AGM
   
26.0
%
AMBAC
   
25.0
%
NPFG5
   
19.9
%
FGIC
   
16.7
%
SYNCORA GTY
   
6.4
%
AGC
   
5.6
%
ACA
   
0.4
%

 
Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this Fund’s Performance Overview page.
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 34.7%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower.
2
The Fund intends to invest at least 80% of its managed assets in municipal securities that are covered by insurance guaranteeing the timely payment of principal and interest. See Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies, Insurance for more information. At the end of the reporting period, 80% of the Fund’s total investments are invested in Insured securities.
3
Ratings shown are the highest rating given by one of the following national rating agencies: Standard & Poor’s Group, Moody’s Investor Services, Inc. or Fitch, Inc. Credit ratings are subject to change. AAA, AA, A, and BBB are investment grade ratings; BB, B, CCC, CC, C and D are below-investment grade ratings. Bonds backed by U.S. Government or agency securities are given an implied rating equal to the rating of such securities. Holdings designated N/R are not rated by a national rating agency.
4
Holdings are subject to change.
5 MBIA’s public finance subsidiary.
 
20
 
Nuveen Investments
 
 
 

 
 
NKX
 
Nuveen Insured California
Performance
 
Tax-Free Advantage
OVERVIEW
 
Municipal Fund
   
as of August 31, 2011
 

Fund Snapshot
       
Common Share Price
 
$
12.88
 
Common Share Net Asset Value (NAV)
 
$
13.94
 
Premium/(Discount) to NAV
   
-7.60
%
Market Yield
   
6.24
%
Taxable-Equivalent Yield1
   
9.56
%
Net Assets Applicable to Common Shares ($000)
 
$
82,059
 
         
Leverage
       
Structural Leverage
   
30.20
%
Effective Leverage
   
35.31
%

Average Annual Total Return
(Inception 11/21/02)
           
    On Share Price   On NAV
6-Month (Cumulative)
    12.95 %     12.05 %
1-Year
    -2.75 %     1.42 %
5-Year
    3.79 %     4.19 %
Since Inception
    4.09 %     5.34 %

Portfolio Composition4
(as a % of total investments)
       
Tax Obligation/Limited
   
31.8
%
Health Care
   
17.5
%
U.S. Guaranteed
   
17.0
%
Water and Sewer
   
8.2
%
Tax Obligation/General
   
8.2
%
Transportation
   
5.7
%
Long-Term Care
   
5.2
%
Other
   
6.4
%
         
Insurers4
(as a % of total Insured investments)
       
AMBAC
   
44.4
%
NPFG5
   
19.5
%
AGM
   
12.0
%
AGC
   
8.9
%
BHAC
   
5.6
%
FGIC
   
5.3
%
SYNCORA GTY
   
4.3
%

 
Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this Fund’s Performance Overview page.
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 34.7%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower.
2
The Fund intends to invest at least 80% of its managed assets in municipal securities that are covered by insurance guaranteeing the timely payment of principal and interest. See Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies, Insurance for more information. At the end of the reporting period, 80% of the Fund’s total investments are invested in Insured securities.
3
Ratings shown are the highest rating given by one of the following national rating agencies: Standard & Poor’s Group, Moody’s Investor Services, Inc. or Fitch, Inc. Credit ratings are subject to change. AAA, AA, A, and BBB are investment grade ratings; BB, B, CCC, CC, C and D are below-investment grade ratings. Bonds backed by U.S. Government or agency securities are given an implied rating equal to the rating of such securities. Holdings designated N/R are not rated by a national rating agency.
4
Holdings are subject to change.
5 MBIA’s public finance subsidiary.

Nuveen Investments
 
21
 
 
 

 
   
Nuveen Insured California Premium Income Municipal Fund, Inc.
NPC
 
Portfolio of Investments
   
August 31, 2011 (Unaudited)
 
 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
Education and Civic Organizations – 3.5% (2.5% of Total Investments)
           
$
750
 
California Educational Facilities Authority, Student Loan Revenue Bonds, Cal Loan Program, Series 2001A, 5.400%, 3/01/21 – NPFG Insured (Alternative Minimum Tax)
3/12 at 100.00
Baa1
 
$
750,488
 
 
1,500
 
California State University, Systemwide Revenue Bonds, Series 2005A, 5.000%, 11/01/25 – AMBAC Insured
5/15 at 100.00
Aa2
   
1,570,140
 
 
1,000
 
California State University, Systemwide Revenue Bonds, Series 2005C, 5.000%, 11/01/27 – NPFG Insured
11/15 at 100.00
Aa2
   
1,044,030
 
 
3,250
 
Total Education and Civic Organizations
       
3,364,658
 
     
Health Care – 9.9% (7.1% of Total Investments)
           
 
3,000
 
California Health Facilities Financing Authority, Insured Revenue Bonds, Sutter Health, Series 1998A, 5.375%, 8/15/30 – NPFG Insured
2/12 at 100.00
AA–
   
3,001,320
 
 
1,500
 
California Statewide Community Development Authority, Certificates of Participation, Sutter Health Obligated Group, Series 1999, 5.500%, 8/15/19 – AGM Insured
2/12 at 100.00
AA+
   
1,505,400
 
 
2,800
 
California Statewide Community Development Authority, Revenue Bonds, St. Joseph Health System, Series 2007A, 5.750%, 7/01/47 – FGIC Insured
7/18 at 100.00
AA–
   
2,822,708
 
 
724
 
California Statewide Communities Development Authority, Revenue Bonds, Saint Joseph Health System, Trust 2554, 18.324%, 7/01/47 – AGM Insured (IF)
7/18 at 100.00
AA+
   
739,957
 
 
1,480
 
Santa Clara County Financing Authority, California, Insured Revenue Bonds, El Camino Hospital, Series 2007A, 5.750%, 2/01/41 – AMBAC Insured
8/17 at 100.00
A+
   
1,506,610
 
 
9,504
 
Total Health Care
       
9,575,995
 
     
Housing/Single Family – 0.1% (0.1% of Total Investments)
           
 
110
 
California Housing Finance Agency, Home Mortgage Revenue Bonds, Series 2006H, 5.750%, 8/01/30 – FGIC Insured (Alternative Minimum Tax)
2/16 at 100.00
Baa1
   
110,070
 
     
Long-Term Care – 1.4% (1.0% of Total Investments)
           
 
1,250
 
California Health Facilities Financing Authority, Insured Revenue Bonds, Community Program for Persons with Developmental Disabilities, Series 2011A, 6.250%, 2/01/26
No Opt. Call
A–
   
1,345,713
 
     
Tax Obligation/General – 27.7% (19.8% of Total Investments)
           
     
Bonita Unified School District, San Diego County, California, General Obligation Bonds, Series 2004A:
           
 
1,890
 
5.250%, 8/01/23 – NPFG Insured
8/14 at 100.00
AA–
   
2,066,243
 
 
1,250
 
5.250%, 8/01/25 – NPFG Insured
8/14 at 100.00
AA–
   
1,365,225
 
     
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
AA–
   
2,834,852
 
 
1,775
 
5.250%, 9/01/22 – FGIC Insured
9/14 at 100.00
AA–
   
1,945,152
 
 
1,130
 
Fontana Unified School District, San Bernardino County, California, General Obligation Bonds, Trust 2668, 9.359%, 2/01/16 – AGM Insured (IF)
No Opt. Call
AA+
   
1,277,375
 
 
1,225
 
Fresno Unified School District, Fresno County, California, General Obligation Refunding Bonds, Series 1998A, 6.550%, 8/01/20 – NPFG Insured
2/13 at 103.00
Aa3
   
1,346,251
 
 
5,000
 
Grossmont Healthcare District, California, General Obligation Bonds, Series 2007A, 5.000%, 7/15/37 – AMBAC Insured
7/17 at 100.00
Aa2
   
5,069,500
 
 
1,180
 
Jurupa Unified School District, Riverside County, California, General Obligation Bonds, Series 2004, 5.000%, 8/01/21 – FGIC Insured
8/13 at 100.00
A+
   
1,217,843
 
 
3,000
 
Pomona Unified School District, Los Angeles County, California, General Obligation Refunding Bonds, Series 1997A, 6.500%, 8/01/19 – NPFG Insured
2/12 at 103.00
A
   
3,151,140
 
 
160
 
Roseville Joint Union High School District, Placer County, California, General Obligation Bonds, Series 2006B, 5.000%, 8/01/27 – FGIC Insured
8/15 at 100.00
AA–
   
165,654
 
 
22
 
Nuveen Investments

 
 

 
 
 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
Tax Obligation/General (continued)
           
$
3,000
 
Sacramento City Unified School District, Sacramento County, California, General Obligation Bonds, Series 2005, 5.000%, 7/01/27 – NPFG Insured
7/15 at 100.00
Aa3
 
$
3,103,860
 
 
3,000
 
San Jacinto Unified School District, Riverside County, California, General Obligation Bonds, Series 2007, 5.250%, 8/01/32 – AGM Insured
No Opt. Call
AA+
   
3,114,840
 
 
25,190
 
Total Tax Obligation/General
       
26,657,935
 
     
Tax Obligation/Limited – 47.3% (33.8% of Total Investments)
           
 
1,000
 
Brea and Olinda Unified School District, Orange County, California, Certificates of Participation Refunding, Series 2002A, 5.125%, 8/01/26 – AGM Insured
8/12 at 100.00
AA+
   
1,012,540
 
     
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
AA
   
1,291,946
 
 
1,615
 
5.000%, 12/01/21 – AMBAC Insured
12/13 at 100.00
AA
   
1,697,381
 
 
195
 
Capistrano Unified School District, Orange County, California, Special Tax Bonds, Community Facilities District, Series 2005, 5.000%, 9/01/24 – FGIC Insured
9/15 at 100.00
BBB
   
192,980
 
 
595
 
Chino Redevelopment Agency, California, Merged Chino Redevelopment Project Area Tax Allocation Bonds, Series 2006, 5.000%, 9/01/38 – AMBAC Insured
9/16 at 101.00
A–
   
515,222
 
 
3,190
 
Chula Vista Public Financing Authority, California, Pooled Community Facility District Assessment Revenue Bonds, Series 2005A, 4.500%, 9/01/27 – NPFG Insured
9/15 at 100.00
Baa1
   
2,743,496
 
 
1,900
 
Corona-Norco Unified School District, Riverside County, California, Special Tax Bonds, Community Facilities District 98-1, Series 2002, 5.100%, 9/01/25 – AMBAC Insured
9/12 at 100.00
N/R
   
1,842,696
 
 
5,000
 
El Monte, California, Senior Lien Certificates of Participation, Department of Public Services Facility Phase II, Series 2001, 5.250%, 1/01/34 – AMBAC Insured
1/12 at 100.00
A2
   
4,705,350
 
 
3,180
 
Golden State Tobacco Securitization Corporation, California, Enhanced Tobacco Settlement Asset-Backed Revenue Bonds, Tender Option Bonds Trust 4686, 8.953%, 6/01/45 – AGC Insured (IF) (4)
6/15 at 100.00
AA+
   
2,684,810
 
 
700
 
Hesperia Public Financing Authority, California, Redevelopment and Housing Projects Tax Allocation Bonds, Series 2007A, 5.000%, 9/01/37 – SYNCORA GTY Insured
9/17 at 100.00
Ba1
   
463,351
 
 
435
 
Indian Wells Redevelopment Agency, California, Tax Allocation Bonds, Consolidated Whitewater Project Area, Series 2003A, 5.000%, 9/01/20 – AMBAC Insured
9/13 at 100.00
A
   
439,085
 
 
345
 
Los Angeles Community Redevelopment Agency, California, Lease Revenue Bonds, Manchester Social Services Project, Series 2005, 5.000%, 9/01/37 – AMBAC Insured
9/15 at 100.00
A1
   
311,166
 
 
895
 
Los Angeles Community Redevelopment Agency, California, Tax Allocation Bonds, Bunker Hill Project, Series 2004A, 5.000%, 12/01/20 – AGM Insured
12/14 at 100.00
AA+
   
977,868
 
 
1,500
 
Los Angeles, California, Municipal Improvement Corporation, Lease Revenue Bonds, Police Headquarters, Series 2006A, 4.750%, 1/01/31 – FGIC Insured
1/17 at 100.00
A+
   
1,435,845
 
 
3,150
 
Moreno Valley Community Redevelopment Agency, California, Tax Allocation Bonds, Series 2007A, 5.000%, 8/01/38 – AMBAC Insured
8/17 at 100.00
A–
   
2,727,995
 
 
7,000
 
Rancho Cucamonga Redevelopment Agency, California, Housing Set-Aside Tax Allocation Bonds, Series 2007A, 5.000%, 9/01/34 – NPFG Insured
9/17 at 100.00
A+
   
6,085,730
 
 
165
 
Rialto Redevelopment Agency, California, Tax Allocation Bonds, Merged Project Area, Series 2005A, 5.000%, 9/01/35 – SYNCORA GTY Insured
9/15 at 100.00
A–
   
144,725
 
 
205
 
Roseville, California, Certificates of Participation, Public Facilities, Series 2003A, 5.000%, 8/01/25 – AMBAC Insured
8/13 at 100.00
AA–
   
206,816
 
 
5,150
 
San Jacinto Unified School District, Riverside County, California, Certificates of Participation, Series 2010, 5.375%, 9/01/40 – AGC Insured
9/20 at 100.00
AA+
   
5,170,034
 
 
1,500
 
San Jose Redevelopment Agency, California, Tax Allocation Bonds, Merged Project Area, Series 2005A, 5.000%, 8/01/28 – NPFG Insured
8/15 at 100.00
BBB+
   
1,287,600
 
 
3,565
 
Sweetwater Union High School District Public Financing Authority, California, Special Tax Revenue Bonds, Series 2005A, 5.000%, 9/01/25 – AGM Insured
9/15 at 100.00
AA+
   
3,640,043
 
 
Nuveen Investments
 
23

 
 

 

   
Nuveen Insured California Premium Income Municipal Fund, Inc. (continued)
NPC
 
Portfolio of Investments
     August 31, 2011 (Unaudited)
 
 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
Tax Obligation/Limited (continued)
           
$
3,250
 
Tustin Community Redevelopment Agency, California, Tax Allocation Housing Bonds Series 2010, 5.250%, 9/01/39 – AGM Insured
9/20 at 100.00
AA+
 
$
3,328,423
 
 
2,805
 
Yucaipa-Calimesa Joint Unified School District, San Bernardino County, California, General Obligation Refunding Bonds, Series 2001A, 5.000%, 10/01/31 – NPFG Insured
10/11 at 100.00
A2
   
2,635,634
 
 
48,555
 
Total Tax Obligation/Limited
       
45,540,736
 
     
Transportation – 2.5% (1.8% of Total Investments)
           
 
2,400
 
San Diego Unified Port District, California, Revenue Bonds, Series 2004B, 5.000%, 9/01/29 – NPFG Insured
9/14 at 100.00
A+
   
2,437,704
 
     
U.S. Guaranteed – 25.9% (18.5% of Total Investments) (5)
           
 
6,000
 
Huntington Park Redevelopment Agency, California, Single Family Residential Mortgage Revenue Refunding Bonds, Series 1986A, 8.000%, 12/01/19 (ETM)
No Opt. Call
Aaa
   
8,796,060
 
 
5,135
 
Palmdale Community Redevelopment Agency, California, Single Family Restructured Mortgage Revenue Bonds, Series 1986A, 8.000%, 3/01/16 (Alternative Minimum Tax) (ETM)
No Opt. Call
Aaa
   
6,703,588
 
 
6,220
 
Riverside County, California, GNMA Mortgage-Backed Securities Program Single Family Mortgage Revenue Bonds, Series 1987B, 9.000%, 5/01/21 (Alternative Minimum Tax) (ETM)
No Opt. Call
Aaa
   
9,487,550
 
 
17,355
 
Total U.S. Guaranteed
       
24,987,198
 
     
Utilities – 0.3% (0.2% of Total Investments)
           
 
345
 
Merced Irrigation District, California, Electric System Revenue Bonds, Series 2005, 5.125%, 9/01/31 – SYNCORA GTY Insured
9/15 at 100.00
N/R
   
311,597
 
     
Water and Sewer – 21.4% (15.2% of Total Investments)
           
 
2,200
 
Atwater Public Financing Authority, California, Wastewater Revenue Bonds, Tender Option Bond Trust 3145, 17.895%, 5/01/40 – AGM Insured (IF)
5/19 at 100.00
AA+
   
2,338,776
 
 
5,255
 
El Dorado Irrigation District, California, Water and Sewer Certificates of Participation, Series 2003A, 5.000%, 3/01/20 – FGIC Insured
3/13 at 100.00
A1
   
5,463,834
 
 
1,230
 
El Dorado Irrigation District, California, Water and Sewer Certificates of Participation, Series 2004A, 5.000%, 3/01/21 – FGIC Insured
3/14 at 100.00
A1
   
1,278,167
 
 
235
 
Healdsburg Public Financing Authority, California, Wastewater Revenue Bonds, Series 2006, 5.000%, 4/01/36 – NPFG Insured
4/16 at 100.00
AA–
   
237,143
 
 
5,000
 
Indio Water Authority, California, Water Revenue Bonds, Series 2006, 5.000%, 4/01/31 – AMBAC Insured
4/16 at 100.00
A+
   
5,093,000
 
 
3,230
 
Los Angeles County Sanitation Districts Financing Authority, California, Capital Projects Revenue Bonds, District 14, Series 2005, 5.000%, 10/01/34 – FGIC Insured
10/15 at 100.00
A+
   
3,241,079
 
 
220
 
Marina Coast Water District, California, Enterprise Certificate of Participation, Series 2006, 5.000%, 6/01/31 – NPFG Insured
6/16 at 100.00
AA–
   
222,858
 
 
24
 
Nuveen Investments

 
 

 
 
 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
Water and Sewer (continued)
           
$
1,500
 
Placerville Public Financing Authority, California, Wastewater System Refinancing and Improvement Project Revenue Bonds, Series 2006, 5.000%, 9/01/34 – SYNCORA GTY Insured
9/16 at 100.00
N/R
 
$
1,274,460
 
 
1,345
 
West Basin Municipal Water District, California, Revenue Certificates of Participation, Series 2003A, 5.000%, 8/01/20 – NPFG Insured
8/13 at 100.00
Aa2
   
1,426,991
 
 
20,215
 
Total Water and Sewer
       
20,576,308
 
$
128,174
 
Total Investments (cost $129,969,082) – 140.0%
       
134,907,914
 
     
Variable Rate Demand Preferred Shares, at Liquidation Value – (44.3)% (6)
       
(42,700,000
     
Other Assets Less Liabilities – 4.3%
       
4,165,829
 
     
Net Assets Applicable to Common Shares – 100%
     
$
96,373,743
 
 
   
The Fund intends to invest at least 80% of its managed assets in municipal securities that are covered by insurance guaranteeing the timely payment of principal and interest. See Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies, Insurance for more information.
(1)
 
All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted.
(2)
 
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. Certain mortgage-backed securities may be subject to periodic principal paydowns.
(3)
 
Ratings: Using the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investor Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies.
(4)
 
Investment, or portion of investment, has been pledged to collaterize the net payment obligations for investments in inverse floating rate transactions.
(5)
 
Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities, which ensure the timely payment of principal and interest.
(6)
 
Variable Rate Demand Preferred Shares, at Liquidation Value as a percentage of Total Investments is 31.7%.
N/R
 
Not rated.
(ETM)
 
Escrowed to maturity.
(IF)
 
Inverse floating rate investment.
 
See accompanying notes to financial statements.
 
Nuveen Investments
 
25

 
 

 
 
   
Nuveen Insured California Premium Income Municipal Fund 2, Inc.
NCL
 
Portfolio of Investments
   
August 31, 2011 (Unaudited)
 
 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
Consumer Staples – 2.7% (1.8% of Total Investments)
           
$
7,500
 
Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed Bonds, Series 2007A-1, 5.125%, 6/01/47
6/17 at 100.00
Baa3
 
$
4,839,600
 
     
Education and Civic Organizations – 5.0% (3.4% of Total Investments)
           
 
585
 
California Educational Facilities Authority, Revenue Bonds, University of the Pacific, Series 2000, 5.875%, 11/01/20 – NPFG Insured
11/11 at 100.00
A2
   
587,036
 
 
750
 
California Educational Facilities Authority, Student Loan Revenue Bonds, Cal Loan Program, Series 2001A, 5.400%, 3/01/21 – NPFG Insured (Alternative Minimum Tax)
3/12 at 100.00
Baa1
   
750,488
 
 
1,500
 
California State University, Systemwide Revenue Bonds, Series 2005A, 5.000%, 11/01/25 – AMBAC Insured
5/15 at 100.00
Aa2
   
1,570,140
 
 
6,000
 
University of California, Revenue Bonds, Multi-Purpose Project Series 2003A, 5.000%, 5/15/27 – AMBAC Insured (UB)
5/13 at 100.00
AA+
   
6,129,960
 
 
8,835
 
Total Education and Civic Organizations
       
9,037,624
 
     
Health Care – 4.8% (3.3% of Total Investments)
           
 
1,410
 
California Statewide Communities Development Authority, Revenue Bonds, Saint Joseph Health System, Trust 2554, 18.324%, 7/01/47 – AGM Insured (IF)
7/18 at 100.00
AA+
   
1,441,076
 
 
4,690
 
Santa Clara County Financing Authority, California, Insured Revenue Bonds, El Camino Hospital, Series 2007A, 5.750%, 2/01/41 – AMBAC Insured
8/17 at 100.00
A+
   
4,774,326
 
 
2,000
 
The Regents of the University of California, Medical Center Pooled Revenue Bonds, Series 2007A, 4.500%, 5/15/37 – NPFG Insured
5/15 at 101.00
Aa2
   
1,822,380
 
 
650
 
University of California, Hospital Revenue Bonds, UCLA Medical Center, Series 2004A, 5.500%, 5/15/18 – AMBAC Insured
5/12 at 101.00
N/R
   
665,958
 
 
8,750
 
Total Health Care
       
8,703,740
 
     
Housing/Single Family – 0.8% (0.5% of Total Investments)
           
 
215
 
California Housing Finance Agency, Home Mortgage Revenue Bonds, Series 2006H, 5.750%, 8/01/30 – FGIC Insured (Alternative Minimum Tax)
2/16 at 100.00
Baa1
   
215,138
 
 
1,190
 
California Housing Finance Agency, Home Mortgage Revenue Bonds, Series 2006K, 5.500%, 2/01/42 – AMBAC Insured (Alternative Minimum Tax)
2/16 at 100.00
N/R
   
1,208,790
 
 
1,405
 
Total Housing/Single Family
       
1,423,928
 
     
Long-Term Care – 1.4% (1.0% of Total Investments)
           
 
1,575
 
California Health Facilities Financing Authority, Insured Revenue Bonds, California-Nevada Methodist Homes, Series 2006, 5.000%, 7/01/36
7/16 at 100.00
A–
   
1,486,202
 
 
1,000
 
California Health Facilities Financing Authority, Insured Revenue Bonds, Community Program for Persons with Developmental Disabilities, Series 2011A, 6.250%, 2/01/26
No Opt. Call
A–
   
1,076,570
 
 
2,575
 
Total Long-Term Care
       
2,562,772
 
     
Tax Obligation/General – 32.4% (22.0% of Total Investments)
           
 
1,425
 
Bassett Unified School District, Los Angeles County, California, General Obligation Bonds, Series 2006B, 5.250%, 8/01/30 – FGIC Insured
8/16 at 100.00
A–
   
1,465,598
 
 
3,000
 
California State, General Obligation Bonds, Series 2006, 4.500%, 9/01/36 – AGM Insured
9/16 at 100.00
AA+
   
2,781,240
 
 
6,000
 
California State, General Obligation Bonds, Various Purpose Series 2010, 6.000%, 3/01/33
3/20 at 100.00
A1
   
6,781,380
 
 
4,200
 
Coast Community College District, Orange County, California, General Obligation Bonds, Series 2006C, 0.000%, 8/01/31 – AGM Insured
8/18 at 100.00
AA+
   
3,841,614
 
 
2,500
 
Corona-Norco Unified School District, Riverside County, California, General Obligation Bonds, Election 2006 Series 2009B, 5.375%, 2/01/34 – AGC Insured
8/18 at 100.00
AA+
   
2,614,325
 
     
East Side Union High School District, Santa Clara County, California, General Obligation Bonds, 2008 Election Series 2010B:
           
 
3,490
 
5.000%, 8/01/27 – AGC Insured
8/19 at 100.00
AA+
   
3,699,191
 
 
3,545
 
5.000%, 8/01/28 – AGC Insured
8/19 at 100.00
AA+
   
3,735,437
 
 
3,110
 
5.000%, 8/01/29 – AGC Insured
8/19 at 100.00
AA+
   
3,253,589
 
 
26
 
Nuveen Investments

 
 

 
 
 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
Tax Obligation/General (continued)
           
$
2,210
 
Fontana Unified School District, San Bernardino County, California, General Obligation Bonds, Trust 2668, 9.359%, 2/01/16 – AGM Insured (IF)
No Opt. Call
AA+
 
$
2,498,228
 
 
1,255
 
Los Angeles Community College District, Los Angeles County, California, General Obligation Bonds, Series 2005A, 5.000%, 8/01/24 – AGM Insured
8/15 at 100.00
AA+
   
1,340,654
 
 
4,000
 
Los Angeles Unified School District, Los Angeles County, California, General Obligation Bonds, Series 2007A, 4.500%, 7/01/24 – AGM Insured
7/17 at 100.00
AA+
   
4,153,560
 
     
Los Rios Community College District, Sacramento, El Dorado and Yolo Counties, California, General Obligation Bonds, Series 2002C:
           
 
2,110
 
5.000%, 8/01/21 – AGM Insured (UB)
8/14 at 102.00
AA+
   
2,317,603
 
 
3,250
 
5.000%, 8/01/22 – AGM Insured (UB)
8/14 at 102.00
AA+
   
3,624,173
 
 
3,395
 
5.000%, 8/01/23 – AGM Insured (UB)
8/14 at 102.00
AA+
   
3,785,866
 
 
1,270
 
Merced City School District, Merced County, California, General Obligation Bonds, Series 2004, 5.000%, 8/01/22 – FGIC Insured
8/13 at 100.00
A
   
1,306,005
 
 
305
 
Roseville Joint Union High School District, Placer County, California, General Obligation Bonds, Series 2006B, 5.000%, 8/01/27 – FGIC Insured
8/15 at 100.00
AA–
   
315,779
 
 
2,500
 
Sacramento City Unified School District, Sacramento County, California, General Obligation Bonds, Series 2005, 5.000%, 7/01/27 – NPFG Insured
7/15 at 100.00
Aa3
   
2,586,550
 
 
1,125
 
San Diego Unified School District, San Diego County, California, General Obligation Bonds, Election of 1998, Series 1999A, 0.000%, 7/01/21 – FGIC Insured
No Opt. Call
Aa1
   
718,988
 
 
2,000
 
San Francisco Community College District, California, General Obligation Bonds, Series 2002A, 5.000%, 6/15/26 – FGIC Insured
6/12 at 100.00
Aa2
   
2,024,540
 
 
2,000
 
San Jacinto Unified School District, Riverside County, California, General Obligation Bonds, Series 2007, 5.250%, 8/01/32 – AGM Insured
No Opt. Call
AA+
   
2,076,560
 
 
1,000
 
San Ramon Valley Unified School District, Contra Costa County, California, General Obligation Bonds, Series 2004, 5.000%, 8/01/24 – AGM Insured
8/14 at 100.00
AA+
   
1,074,670
 
 
2,445
 
Washington Unified School District, Yolo County, California, General Obligation Bonds, Series 2004A, 5.000%, 8/01/21 – FGIC Insured
8/13 at 100.00
A+
   
2,588,424
 
 
56,135
 
Total Tax Obligation/General
       
58,583,974
 
     
Tax Obligation/Limited – 61.6% (41.8% of Total Investments)
           
     
Anaheim Public Finance Authority, California, Subordinate Lease Revenue Bonds, Public Improvement Project, Series 1997C:
           
 
5,130
 
0.000%, 9/01/18 – AGM Insured
No Opt. Call
AA+
   
3,809,538
 
 
8,000
 
0.000%, 9/01/21 – AGM Insured
No Opt. Call
AA+
   
4,640,960
 
 
2,235
 
Antioch Public Financing Authority, California, Lease Revenue Refunding Bonds, Municipal Facilities Project, Refunding Series 2002A, 5.500%, 1/01/32 – NPFG Insured
1/11 at 100.00
A
   
2,234,888
 
     
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
AA
   
1,620,300
 
 
1,780
 
5.000%, 12/01/23 – AMBAC Insured
12/13 at 100.00
AA
   
1,852,553
 
 
3,725
 
California State Public Works Board, Lease Revenue Bonds, Department of Corrections & Rehabilitation, Series 2005J, 5.000%, 1/01/17 – AMBAC Insured
1/16 at 100.00
A2
   
4,135,011
 
 
4,000
 
California State Public Works Board, Lease Revenue Bonds, Various Capital Projects, Series 2009G-1, 5.750%, 10/01/30
10/19 at 100.00
A2
   
4,201,360
 
 
380
 
Capistrano Unified School District, Orange County, California, Special Tax Bonds, Community Facilities District, Series 2005, 5.000%, 9/01/24 – FGIC Insured
9/15 at 100.00
BBB
   
376,063
 
 
7,000
 
Chula Vista Public Financing Authority, California, Pooled Community Facility District Assessment Revenue Bonds, Series 2005A, 4.500%, 9/01/27 – NPFG Insured
9/15 at 100.00
Baa1
   
6,020,210
 
 
1,430
 
Cloverdale Community Development Agency, California, Tax Allocation Refunding Bonds, Cloverdale Redevelopment Project Series 2006, 5.000%, 8/01/36 – AMBAC Insured
No Opt. Call
A–
   
1,252,909
 
 
5,225
 
El Monte, California, Senior Lien Certificates of Participation, Department of Public Services Facility Phase II, Series 2001, 5.000%, 1/01/21 – AMBAC Insured
1/12 at 100.00
A2
   
5,229,494
 
 
8,280
 
Fontana Public Financing Authority, California, Tax Allocation Revenue Bonds, North Fontana Redevelopment Project, Series 2005A, 5.000%, 10/01/32 – AMBAC Insured
10/15 at 100.00
A
   
7,517,081
 
 
Nuveen Investments
 
27

 
 

 
 
   
Nuveen Insured California Premium Income Municipal Fund 2, Inc. (continued)
NCL
 
Portfolio of Investments
     August 31, 2011 (Unaudited)
 
 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
Tax Obligation/Limited (continued)
           
     
Golden State Tobacco Securitization Corporation, California, Enhanced Tobacco Settlement Asset-Backed Revenue Bonds, Series 2005A:
           
$
7,250
 
5.000%, 6/01/35 – FGIC Insured
6/15 at 100.00
AA+
 
$
6,891,778
 
 
7,500
 
5.000%, 6/01/45 – AGC Insured
6/15 at 100.00
AA+
   
6,916,050
 
 
6,215
 
Golden State Tobacco Securitization Corporation, California, Enhanced Tobacco Settlement Asset-Backed Revenue Bonds, Tender Option Bonds Trust 4686, 8.953%, 6/01/45 – AGC Insured (IF) (4)
6/15 at 100.00
AA+
   
5,247,200
 
 
2,000
 
Golden State Tobacco Securitization Corporation, California, Enhanced Tobacco Settlement Revenue Bonds, Tender Option Bonds Trust 2040, 10.475%, 6/01/45 – FGIC Insured (IF)
6/15 at 100.00
A2
   
1,300,040
 
 
875
 
Hesperia Public Financing Authority, California, Redevelopment and Housing Projects Tax Allocation Bonds, Series 2007A, 5.000%, 9/01/37 – SYNCORA GTY Insured
9/17 at 100.00
Ba1
   
579,189
 
 
1,700
 
Hesperia Unified School District, San Bernardino County, California, Certificates of Participation, Capital Improvement, Series 2007, 5.000%, 2/01/41 – AMBAC Insured
2/17 at 100.00
A–
   
1,487,262
 
 
5,000
 
La Quinta Redevelopment Agency, California, Tax Allocation Refunding Bonds, Redevelopment Project Area 1, Series 1998, 5.200%, 9/01/28 – AMBAC Insured
3/12 at 100.00
A+
   
4,922,450
 
 
2,185
 
Los Angeles Community Redevelopment Agency, California, Lease Revenue Bonds, Manchester Social Services Project, Series 2005, 5.000%, 9/01/37 – AMBAC Insured
9/15 at 100.00
A1
   
1,970,717
 
 
1,000
 
Los Angeles Community Redevelopment Agency, California, Tax Allocation Bonds, Bunker Hill Project, Series 2004A, 5.000%, 12/01/20 – AGM Insured
12/14 at 100.00
AA+
   
1,092,590
 
 
4,000
 
Los Angeles, California, Certificates of Participation, Municipal Improvement Corporation, Series 2003AW, 5.000%, 6/01/33 – AMBAC Insured
6/13 at 100.00
A+
   
4,024,640
 
 
3,000
 
Los Angeles, California, Municipal Improvement Corporation, Lease Revenue Bonds, Police Headquarters, Series 2006A, 4.750%, 1/01/31 – FGIC Insured
1/17 at 100.00
A+
   
2,871,690
 
 
6,120
 
Moreno Valley Community Redevelopment Agency, California, Tax Allocation Bonds, Series 2007A, 5.000%, 8/01/38 – AMBAC Insured
8/17 at 100.00
A–
   
5,300,104
 
 
2,810
 
Oakland Joint Powers Financing Authority, California, Lease Revenue Bonds, Administration Building Projects, Series 2008B, 5.000%, 8/01/21 – AGC Insured
8/18 at 100.00
AA+
   
3,014,371
 
 
1,000
 
Palm Springs Financing Authority, California, Lease Revenue Bonds, Convention Center Project, Refunding Series 2004A, 5.500%, 11/01/35 – NPFG Insured
11/14 at 102.00
A
   
1,005,720
 
 
4,140
 
Plumas County, California, Certificates of Participation, Capital Improvement Program, Series 2003A, 5.000%, 6/01/28 – AMBAC Insured
6/13 at 101.00
A
   
4,116,485
 
 
390
 
Poway Redevelopment Agency, California, Tax Allocation Refunding Bonds, Paguay Redevelopment Project, Series 2000, 5.750%, 6/15/33 – NPFG Insured
12/12 at 100.00
Baa1
   
380,972
 
 
325
 
Rialto Redevelopment Agency, California, Tax Allocation Bonds, Merged Project Area, Series 2005A, 5.000%, 9/01/35 – SYNCORA GTY Insured
9/15 at 100.00
A–
   
285,064
 
 
1,000
 
Rocklin Unified School District, Placer County, California, Special Tax Bonds, Community Facilities District 1, Series 2004, 5.000%, 9/01/25 – NPFG Insured
9/13 at 100.00
A–
   
981,260
 
 
2,500
 
Roseville Financing Authority, California, Special Tax Revenue Bonds, Series 2007A, 5.000%, 9/01/33 – AMBAC Insured
9/17 at 100.00
N/R
   
2,049,175
 
 
405
 
Roseville, California, Certificates of Participation, Public Facilities, Series 2003A, 5.000%, 8/01/25 – AMBAC Insured
8/13 at 100.00
AA–
   
408,588
 
 
4,295
 
San Bernardino Joint Powers Financing Authority, California, Certificates of Participation Refunding, Police Station Financing Project, Series 1999, 5.500%, 9/01/20 – NPFG Insured
3/12 at 100.00
Baa1
   
4,296,589
 
 
1,500
 
San Jose Redevelopment Agency, California, Tax Allocation Bonds, Merged Project Area, Series 2005A, 5.000%, 8/01/28 – NPFG Insured
8/15 at 100.00
BBB+
   
1,287,600
 
 
5,510
 
Sweetwater Union High School District Public Financing Authority, California, Special Tax Revenue Bonds, Series 2005A, 5.000%, 9/01/28 – AGM Insured
9/15 at 100.00
AA+
   
5,583,669
 
 
1,205
 
Tustin Community Redevelopment Agency, California, Tax Allocation Housing Bonds Series 2010, 5.000%, 9/01/30 – AGM Insured
No Opt. Call
AA+
   
1,236,173
 
 
1,020
 
Washington Unified School District, Yolo County, California, Certificates of Participation, Series 2007, 5.125%, 8/01/37 – AMBAC Insured
8/17 at 100.00
A
   
1,025,641
 
 
121,665
 
Total Tax Obligation/Limited
       
111,165,384
 
 
28
 
Nuveen Investments

 
 

 
 
 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
Transportation – 6.0% (4.1% of Total Investments)
           
$
6,500
 
Foothill/Eastern Transportation Corridor Agency, California, Toll Road Revenue Refunding Bonds, Series 1999, 0.000%, 1/15/18 – NPFG Insured
11/11 at 71.59
Baa1
 
$
4,469,400
 
 
4,000
 
Orange County Transportation Authority, California, Toll Road Revenue Bonds, 91 Express Lanes Project, Series 2003A, 5.000%, 8/15/18 – AMBAC Insured
8/13 at 100.00
A1
   
4,239,200
 
 
2,155
 
San Francisco Airports Commission, California, Revenue Refunding Bonds, San Francisco International Airport, Second Series 2001, Issue 27A, 5.250%,
11/11 at 100.00
A+
   
2,154,978
 
         5/01/31 – NPFG Insured (Alternative Minimum Tax)            
 
12,655
 
Total Transportation
       
10,863,578
 
     
U.S. Guaranteed – 3.2% (2.1% of Total Investments) (5)
           
 
1,705
 
Central Unified School District, Fresno County, California, General Obligation Bonds, Series 1993, 5.625%, 3/01/18 – AMBAC Insured (ETM)
3/12 at 100.00
AAA
   
1,753,064
 
 
3,000
 
Riverside County, California, GNMA Mortgage-Backed Securities Program Single Family Mortgage Revenue Bonds, Series 1987B, 8.625%, 5/01/16 (Alternative Minimum Tax) (ETM)
No Opt. Call
Aaa
   
3,991,140
 
 
4,705
 
Total U.S. Guaranteed
       
5,744,204
 
     
Utilities – 8.2% (5.6% of Total Investments)
           
 
670
 
Merced Irrigation District, California, Electric System Revenue Bonds, Series 2005, 5.125%, 9/01/31 – SYNCORA GTY Insured
9/15 at 100.00
N/R
   
605,131
 
 
100
 
Sacramento City Financing Authority, California, Capital Improvement Revenue Bonds, Solid Waste and Redevelopment Projects, Series 1999,
12/11 at 100.00
N/R
   
100,170
 
         5.800%, 12/01/19 – AMBAC Insured            
 
1,950
 
Salinas Valley Solid Waste Authority, California, Revenue Bonds, Series 2002, 5.250%, 8/01/27 – AMBAC Insured (Alternative Minimum Tax)
8/12 at 100.00
A+
   
1,927,127
 
     
Santa Clara, California, Subordinate Electric Revenue Bonds, Series 2003A:
           
 
2,800
 
5.000%, 7/01/24 – NPFG Insured
7/13 at 100.00
A1
   
2,875,068
 
 
5,000
 
5.000%, 7/01/28 – NPFG Insured
7/13 at 100.00
A1
   
5,058,600
 
 
4,000
 
Southern California Public Power Authority, California, Milford Wind Corridor Phase I Revenue Bonds, Series 2010-1, 5.000%, 7/01/28
No Opt. Call
AA–
   
4,256,080
 
 
14,520
 
Total Utilities
       
14,822,176
 
     
Water and Sewer – 21.2% (14.4% of Total Investments)
           
 
1,100
 
Atwater Public Financing Authority, California, Wastewater Revenue Bonds, Tender Option Bond Trust 3145, 17.895%, 5/01/40 – AGM Insured (IF)
5/19 at 100.00
AA+
   
1,169,388
 
 
2,000
 
El Dorado Irrigation District, California, Water and Sewer Certificates of Participation, Series 2004A, 5.000%, 3/01/21 – FGIC Insured
3/14 at 100.00
A1
   
2,078,320
 
 
750
 
Fortuna Public Finance Authority, California, Water Revenue Bonds, Series 2006, 5.000%, 10/01/36 – AGM Insured
10/16 at 100.00
AA+
   
755,820
 
 
460
 
Healdsburg Public Financing Authority, California, Wastewater Revenue Bonds, Series 2006, 5.000%, 4/01/36 – NPFG Insured
4/16 at 100.00
AA–
   
464,195
 
 
2,700
 
Los Angeles County Sanitation Districts Financing Authority, California, Senior Revenue Bonds, Capital Projects, Series 2003A, 5.000%, 10/01/21 – AGM Insured
10/13 at 100.00
AA+
   
2,915,676
 
 
2,000
 
Los Angeles, California, Wastewater System Revenue Bonds, Series 2005A, 4.500%, 6/01/29 – NPFG Insured
6/15 at 100.00
AA
   
2,027,080
 
 
430
 
Marina Coast Water District, California, Enterprise Certificate of Participation, Series 2006, 5.000%, 6/01/31 – NPFG Insured
6/16 at 100.00
AA–
   
435,586
 
 
12,000
 
Orange County Sanitation District, California, Certificates of Participation, Series 2003, 5.000%, 2/01/33 – FGIC Insured (UB)
8/13 at 100.00
AAA
   
12,162,480
 
 
1,520
 
San Buenaventura, California, Water Revenue Certificates of Participation, Series 2004, 5.000%, 10/01/25 – AMBAC Insured
10/14 at 100.00
AA
   
1,562,742
 
 
1,000
 
San Diego County Water Authority, California, Water Revenue Certificates of Participation, Series 2008A, 5.000%, 5/01/38 – AGM Insured
5/18 at 100.00
AA+
   
1,028,170
 
 
3,675
 
San Dieguito Water District, California, Water Revenue Bonds, Refunding Series 2004, 5.000%, 10/01/23 – FGIC Insured
10/14 at 100.00
AA+
   
3,990,389
 
                   
 
Nuveen Investments
 
29

 
 

 
 
   
Nuveen Insured California Premium Income Municipal Fund 2, Inc. (continued)
NCL
 
Portfolio of Investments
     August 31, 2011 (Unaudited)
 
 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
Water and Sewer (continued)
           
     
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
AA+
 
$
1,488,032
 
 
445
 
5.000%, 2/01/20 – FGIC Insured
2/14 at 100.00
AA+
   
470,116
 
 
465
 
5.000%, 2/01/21 – FGIC Insured
2/14 at 100.00
AA+
   
488,701
 
 
2,500
 
West Basin Municipal Water District, California, Revenue Certificates of Participation, Series 2003A, 5.000%, 8/01/30 – NPFG Insured
8/13 at 100.00
Aa2
   
2,528,323
 
     
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
AA+
   
2,119,443
 
 
2,530
 
5.000%, 10/01/33 – FGIC Insured
10/13 at 100.00
AA+
   
2,620,647
 
 
36,985
 
Total Water and Sewer
       
38,305,108
 
$
275,730
 
Total Investments (cost $263,674,448) – 147.3%
       
266,052,088
 
     
Floating Rate Obligations – (9.9)%
       
(17,880,000
     
Variable Rate Demand Preferred Shares, at Liquidation Value – (41.0)% (6)
       
(74,000,000
     
Other Assets Less Liabilities – 3.6%
       
6,437,549
 
     
Net Assets Applicable to Common Shares – 100%
     
$
180,609,637
 
 
   
The Fund intends to invest at least 80% of its managed assets in municipal securities that are covered by insurance guaranteeing the timely payment of principal and interest. See Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies, Insurance for more information.
(1)
 
All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted.
(2)
 
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. Certain mortgage-backed securities may be subject to periodic principal paydowns.
(3)
 
Ratings: Using the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investor Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies.
(4)
 
Investment, or portion of investment, has been pledged to collaterize the net payment obligations for investments in inverse floating rate transactions.
(5)
 
Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities, which ensure the timely payment of principal and interest.
(6)
 
Variable Rate Demand Preferred Shares, at Liquidation Value as a percentage of Total Investments is 27.8%.
N/R
 
Not rated.
(ETM)
 
Escrowed to maturity.
(IF)
 
Inverse floating rate investment.
(UB)
 
Underlying bond of an inverse floating rate trust reflected as a financing transaction. See Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies, Inverse Floating Rate Securities for more information.
 
See accompanying notes to financial statements.
 
30
 
Nuveen Investments

 
 

 
 
   
Nuveen California Premium Income Municipal Fund
NCU
 
Portfolio of Investments
   
August 31, 2011 (Unaudited)
 
 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
Consumer Staples – 6.3% (4.2% of Total Investments)
           
$
1,500
 
California County Tobacco Securitization Agency, Tobacco Settlement Asset-Backed Bonds, Alameda County Tobacco Asset Securitization Corporation, Series 2002, 5.750%, 6/01/29
6/12 at 100.00
Baa3
 
$
1,386,810
 
 
205
 
California County Tobacco Securitization Agency, Tobacco Settlement Asset-Backed Bonds, Sonoma County Tobacco Securitization Corporation, Series 2005, 4.250%, 6/01/21
6/15 at 100.00
BBB
   
190,923
 
 
2,885
 
California Statewide Financing Authority, Tobacco Settlement Asset-Backed Bonds, Pooled Tobacco Securitization Program, Series 2002A, 5.625%, 5/01/29
5/12 at 100.00
Baa3
   
2,664,499
 
 
1,350
 
Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed Bonds, Series 2007A-2, 0.000%, 6/01/37
6/22 at 100.00
BB+
   
837,027
 
 
5,940
 
Total Consumer Staples
       
5,079,259
 
     
Education and Civic Organizations – 7.8% (5.2% of Total Investments)
           
 
70
 
California Educational Facilities Authority, Revenue Bonds, University of Redlands, Series 2005A, 5.000%, 10/01/35
10/15 at 100.00
A3
   
65,800
 
     
California Educational Facilities Authority, Revenue Bonds, University of the Pacific, Series 2006:
           
 
45
 
5.000%, 11/01/21
11/15 at 100.00
A2
   
47,734
 
 
60
 
5.000%, 11/01/25
11/15 at 100.00
A2
   
61,930
 
 
1,112
 
California State Public Works Board, Lease Revenue Bonds, University of California Regents, Tender Option Bond Trust 1065, 9.061%, 3/01/33 (IF)
3/18 at 100.00
Aa2
   
1,165,888
 
 
2,000
 
California State University, Systemwide Revenue Bonds, Series 2005C, 5.000%, 11/01/27 – NPFG Insured
11/15 at 100.00
Aa2
   
2,088,060
 
 
185
 
California Statewide Communities Development Authority, Charter School Revenue Bonds, Rocketship 4 – Mosaic Elementary Charter School, Series 2011A, 8.500%, 12/01/41 (WI/DD, Settling 9/08/11)
12/21 at 100.00
N/R
   
185,962
 
 
300
 
California Statewide Communities Development Authority, School Facility Revenue Bonds, Alliance College-Ready Public Schools, Series 2011A, 7.000%, 7/01/46
7/21 at 100.00
N/R
   
291,219
 
 
1,245
 
University of California, General Revenue Bonds, Series 2003A, 5.125%, 5/15/17 – AMBAC Insured (UB)
5/13 at 100.00
Aa1
   
1,333,731
 
 
1,000
 
University of California, Limited Project Revenue Bonds, Series 2007D, 5.000%, 5/15/41 – FGIC Insured
5/16 at 101.00
Aa2
   
1,014,040
 
 
6,017
 
Total Education and Civic Organizations
       
6,254,364
 
     
Energy – 0.5% (0.4% of Total Investments)
           
 
500
 
Virgin Islands Public Finance Authority, Revenue Bonds, Refinery Project Hovensa LLC, Series 2007, 4.700%, 7/01/22 (Alternative Minimum Tax)
1/15 at 100.00
Ba2
   
423,075
 
     
Health Care – 27.0% (18.0% of Total Investments)
           
 
2,745
 
California Health Facilities Financing Authority, Hospital Revenue Bonds, Downey Community Hospital, Series 1993, 5.750%, 5/15/15 (4)
11/11 at 100.00
N/R
   
2,236,791
 
 
155
 
California Health Facilities Financing Authority, Revenue Bonds, Kaiser Permanante System, Series 2006, 5.000%, 4/01/37
4/16 at 100.00
A+
   
148,521
 
 
490
 
California Health Facilities Financing Authority, Revenue Bonds, Sutter Health, Series 2007A, 5.250%, 11/15/46
11/16 at 100.00
AA–
   
482,841
 
 
3,525
 
California Health Facilities Financing Authority, Revenue Bonds, Sutter Health, Series 2007A, 5.250%, 11/15/46 (UB)
11/16 at 100.00
AA–
   
3,473,500
 
 
685
 
California Municipal Financing Authority, Certificates of Participation, Community Hospitals of Central California, Series 2007, 5.250%, 2/01/46
2/17 at 100.00
Baa2
   
583,367
 
 
1,000
 
California Statewide Community Development Authority, Insured Health Facility Revenue Bonds, Henry Mayo Newhall Memorial Hospital, Series 2007A, 5.000%, 10/01/37
10/17 at 100.00
A–
   
943,000
 
 
1,740
 
California Statewide Community Development Authority, Revenue Bonds, Daughters of Charity Health System, Series 2005A, 5.250%, 7/01/30
7/15 at 100.00
BBB
   
1,477,069
 
 
Nuveen Investments
 
31

 
 

 
 
 
 
Nuveen California Premium Income Municipal Fund (continued)
NCU
 
Portfolio of Investments
     August 31, 2011 (Unaudited)
 
 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
Health Care (continued)
           
$
730
 
California Statewide Community Development Authority, Revenue Bonds, Kaiser Permanente System, Series 2001C, 5.250%, 8/01/31
8/16 at 100.00
A+
 
$
739,424
 
 
3,000
 
California Statewide Community Development Authority, Revenue Bonds, Methodist Hospital Project, Series 2009, 6.750%, 2/01/38
8/19 at 100.00
Aa2
   
3,387,690
 
 
2,100
 
California Statewide Community Development Authority, Revenue Bonds, Sherman Oaks Health System, Series 1998A, 5.000%, 8/01/22 – AMBAC Insured
No Opt. Call
A1
   
2,201,535
 
 
1,690
 
California Statewide Community Development Authority, Revenue Bonds, Sutter Health, Series 2005A, 5.000%, 11/15/43
11/15 at 100.00
AA–
   
1,606,953
 
 
377
 
California Statewide Communities Development Authority, Revenue Bonds, Saint Joseph Health System, Trust 2554, 18.324%, 7/01/47 – AGM Insured (IF)
7/18 at 100.00
AA+
   
384,798
 
 
760
 
Loma Linda, California, Hospital Revenue Bonds, Loma Linda University Medical Center, Series 2008A, 8.250%, 12/01/38
12/17 at 100.00
BBB
   
837,946
 
 
1,450
 
Palomar Pomerado Health Care District, California, Certificates of Participation, Series 2010, 6.000%, 11/01/41
11/20 at 100.00
Baa3
   
1,359,941
 
 
850
 
San Buenaventura, California, Revenue Bonds, Community Memorial Health System, Series 2011, 7.500%, 12/01/41
12/21 at 100.00
BB
   
843,821
 
 
1,000
 
The Regents of the University of California, Medical Center Pooled Revenue Bonds, Series 2009E, 5.000%, 5/15/38
5/17 at 101.00
Aa2
   
1,007,860
 
 
22,297
 
Total Health Care
       
21,715,057
 
     
Housing/Multifamily – 0.6% (0.4% of Total Investments)
           
 
495
 
California Municipal Finance Authority, Mobile Home Park Revenue Bonds, Caritas Projects Series 2010A, 6.400%, 8/15/45
8/20 at 100.00
BBB–
   
485,442
 
     
Housing/Single Family – 3.0% (2.0% of Total Investments)
           
 
2,500
 
California Housing Finance Agency, California, Home Mortgage Revenue Bonds, Series 2008L, 5.500%, 8/01/38
2/18 at 100.00
Baa1
   
2,343,450
 
 
100
 
California Housing Finance Agency, Home Mortgage Revenue Bonds, Series 2006H, 5.750%, 8/01/30 – FGIC Insured (Alternative Minimum Tax)
2/16 at 100.00
Baa1
   
100,064
 
 
2,600
 
Total Housing/Single Family
       
2,443,514
 
     
Tax Obligation/General – 27.7% (18.5% of Total Investments)
           
     
California State, General Obligation Bonds, Various Purpose Series 2009:
           
 
1,300
 
5.500%, 11/01/39
11/19 at 100.00
A1
   
1,352,325
 
 
2,350
 
6.000%, 11/01/39
11/19 at 100.00
A1
   
2,574,214
 
 
1,500
 
California, General Obligation Bonds, Series 2003, 5.000%, 2/01/31 – NPFG Insured
2/13 at 100.00
A1
   
1,507,365
 
 
4,475
 
Coast Community College District, Orange County, California, General Obligation Bonds, Series 2006C, 0.000%, 8/01/31 – AGM Insured
8/18 at 100.00
AA+
   
4,093,148
 
 
6,000
 
Hartnell Community College District, California, General Obligation Bonds, Series 2006B, 5.000%, 6/01/29 – AGM Insured (UB)
6/16 at 100.00
AA+
   
6,203,040
 
 
2,510
 
Pomona Unified School District, Los Angeles County, California, General Obligation Refunding Bonds, Series 1997A, 6.150%, 8/01/15 – NPFG Insured
2/12 at 103.00
A
   
2,638,110
 
 
15
 
Riverside Community College District, California, General Obligation Bonds, Series 2004A, 5.250%, 8/01/22 – NPFG Insured
8/14 at 100.00
AA
   
16,497
 
 
135
 
Roseville Joint Union High School District, Placer County, California, General Obligation Bonds, Series 2006B, 5.000%, 8/01/27 – FGIC Insured
8/15 at 100.00
AA–
   
139,771
 
 
1,355
 
San Jose-Evergreen Community College District, Santa Clara County, California, General Obligation Bonds, Series 2005A, 5.000%, 9/01/25 – NPFG Insured
9/15 at 100.00
Aa1
   
1,416,097
 
 
8,345
 
Yosemite Community College District, California, General Obligation Bonds, Capital Appreciation, Election 2004, Series 2010D, 0.000%, 8/01/42
No Opt. Call
Aa2
   
2,382,080
 
 
27,985
 
Total Tax Obligation/General
       
22,322,647
 
 
32
 
Nuveen Investments

 
 

 
 
 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
Tax Obligation/Limited – 45.2% (30.2% of Total Investments)
           
$
1,000
 
Bell Community Redevelopment Agency, California, Tax Allocation Bonds, Bell Project Area, Series 2003, 5.625%, 10/01/33 – RAAI Insured
10/13 at 100.00
N/R
 
$
795,040
 
     
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
AA
   
1,772,377
 
 
1,865
 
5.000%, 12/01/24 – AMBAC Insured
12/13 at 100.00
AA
   
1,933,483
 
 
5,920
 
California State Public Works Board, Lease Revenue Bonds, Department of Veterans Affairs, Southern California Veterans Home – Chula Vista Facility, Series 1999A, 5.600%, 11/01/19 – AMBAC Insured
11/11 at 100.00
A2
   
5,953,507
 
 
1,000
 
California State Public Works Board, Lease Revenue Bonds, Various Capital Projects, Series 2009G-1, 5.750%, 10/01/30
10/19 at 100.00
A2
   
1,050,340
 
 
2,000
 
California State Public Works Board, Lease Revenue Bonds, Various Capital Projects, Series 2009I-1, 6.375%, 11/01/34
11/19 at 100.00
A2
   
2,174,680
 
 
535
 
California, Economic Recovery Revenue Bonds, Series 2004A, 5.000%, 7/01/15
7/14 at 100.00
Aa3
   
597,258
 
 
165
 
Capistrano Unified School District, Orange County, California, Special Tax Bonds, Community Facilities District, Series 2005, 5.000%, 9/01/24 – FGIC Insured
9/15 at 100.00
BBB
   
163,291
 
 
500
 
Chino Redevelopment Agency, California, Merged Chino Redevelopment Project Area Tax Allocation Bonds, Series 2006, 5.000%, 9/01/38 – AMBAC Insured
9/16 at 101.00
A–
   
432,960
 
 
170
 
National City Community Redevelopment Agency, California, Tax Allocation Revenue Bonds, National City Redevelopment Project Area, Series 2011, 6.500%, 8/01/24
8/21 at 100.00
A–
   
177,305
 
     
Irvine, California, Unified School District, Community Facilities District Special Tax Bonds, Series 2006A:
           
 
75
 
5.000%, 9/01/26
9/16 at 100.00
N/R
   
71,204
 
 
175
 
5.125%, 9/01/36
9/16 at 100.00
N/R
   
157,175
 
 
3,500
 
Livermore Redevelopment Agency, California, Tax Allocation Revenue Bonds, Livermore Redevelopment Project Area, Series 2001A, 5.000%, 8/01/26 – NPFG Insured
2/12 at 100.00
BBB+
   
3,138,870
 
 
310
 
Los Angeles Community Redevelopment Agency, California, Lease Revenue Bonds, Manchester Social Services Project, Series 2005, 5.000%, 9/01/37 – AMBAC Insured
9/15 at 100.00
A1
   
279,598
 
 
2,000
 
Los Angeles, California, Municipal Improvement Corporation, Lease Revenue Bonds, Police Headquarters, Series 2006A, 4.750%, 1/01/31 – FGIC Insured
1/17 at 100.00
A+
   
1,914,460
 
 
475
 
Lynwood Redevelopment Agency, California, Project A Revenue Bonds, Subordinate Lien Series 2011A, 7.250%, 9/01/38
9/21 at 100.00
A–
   
498,408
 
 
3,230
 
Murrieta Redevelopment Agency, California, Tax Allocation Bonds, Series 2005, 5.000%, 8/01/35 – NPFG Insured
8/15 at 100.00
A–
   
2,848,472
 
 
65
 
Novato Redevelopment Agency, California, Tax Allocation Bonds, Hamilton Field Redevelopment Project, Series 2011, 6.750%, 9/01/40
9/21 at 100.00
A–
   
67,832
 
 
210
 
Rancho Santa Fe CSD Financing Authority, California, Revenue Bonds, Superior Lien Series 2011A, 5.750%, 9/01/30
9/21 at 100.00
BBB+
   
213,030
 
 
155
 
Rialto Redevelopment Agency, California, Tax Allocation Bonds, Merged Project Area, Series 2005A, 5.000%, 9/01/35 – SYNCORA GTY Insured
9/15 at 100.00
A–
   
135,954
 
 
40
 
Riverside County Redevelopment Agency, California, Tax Allocation Bonds, Jurupa Valley Project Area, Series 2011-B, 6.500%, 10/01/25
10/21 at 100.00
A–
   
41,494
 
 
190
 
Roseville, California, Certificates of Participation, Public Facilities, Series 2003A, 5.000%, 8/01/25 – AMBAC Insured
8/13 at 100.00
AA–
   
191,683
 
 
1,500
 
Sacramento City Financing Authority, California, Lease Revenue Refunding Bonds, Series 1993A, 5.400%, 11/01/20 – NPFG Insured
No Opt. Call
A1
   
1,631,520
 
 
3,000
 
Sacramento City Financing Authority, California, Lease Revenue Refunding Bonds, Series 1993B, 5.400%, 11/01/20
No Opt. Call
A1
   
3,263,040
 
 
2,000
 
San Francisco City and County, California, Certificates of Participation, Multiple Capital Improvement Projects, Series 2009A, 5.200%, 4/01/26
4/19 at 100.00
AA–
   
2,126,660
 
 
30
 
San Francisco Redevelopment Finance Authority, California, Tax Allocation Revenue Bonds, Mission Bay North Redevelopment Project, Series 2011C, 6.750%, 8/01/41
2/21 at 100.00
A–
   
31,807
 
 
Nuveen Investments
 
33

 
 

 
 
 
 
Nuveen California Premium Income Municipal Fund (continued)
NCU  
Portfolio of Investments
     August 31, 2011 (Unaudited)
 
 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
Tax Obligation/Limited (continued)
           
     
San Francisco Redevelopment Financing Authority, California, Tax Allocation Revenue Bonds, Mission Bay South Redevelopment Project, Series 2011D:
           
$
30
 
7.000%, 8/01/33
2/21 at 100.00
BBB
 
$
31,581
 
 
40
 
7.000%, 8/01/41
2/21 at 100.00
BBB
   
41,963
 
     
San Marcos Public Facilities Authority, California, Revenue Refunding Bonds, Series 1998:
           
 
1,350
 
5.800%, 9/01/18
3/12 at 100.00
Baa3
   
1,361,880
 
 
1,000
 
5.800%, 9/01/27
3/12 at 100.00
Baa3
   
1,000,290
 
 
2,050
 
Santa Barbara County, California, Certificates of Participation, Series 2001, 5.250%, 12/01/19 – AMBAC Insured
12/11 at 102.00
AA+
   
2,112,443
 
 
50
 
Signal Hill Redevelopment Agency, California, Project 1 Tax Allocation Bonds, Series 2011, 7.000%, 10/01/26
4/21 at 100.00
N/R
   
50,308
 
 
95
 
Yorba Linda Redevelopment Agency, Orange County, California, Tax Allocation Revenue Bonds, Yorba Linda Redevelopment Project, Subordinate Lien Series 2011A, 6.000%, 9/01/26
9/21 at 100.00
A–
   
99,585
 
 
36,420
 
Total Tax Obligation/Limited
       
36,359,498
 
     
Transportation – 3.4% (2.3% of Total Investments)
           
 
780
 
Bay Area Toll Authority, California, Revenue Bonds, San Francisco Bay Area Toll Bridge, Series 2006F, 5.000%, 4/01/31 (UB)
4/16 at 100.00
AA
   
806,239
 
 
220
 
Bay Area Toll Authority, California, Revenue Bonds, San Francisco Bay Area Toll Bridge, Series 2008, Trust 3211, 13.398%, 10/01/32 (IF)
4/18 at 100.00
AA
   
262,154
 
 
2,000
 
Foothill/Eastern Transportation Corridor Agency, California, Toll Road Revenue Bonds, Series 1995A, 5.000%, 1/01/35
1/12 at 100.00
BBB–
   
1,635,840
 
 
3,000
 
Total Transportation
       
2,704,233
 
     
U.S. Guaranteed – 13.4% (8.9% of Total Investments) (5)
           
 
2,000
 
California Department of Water Resources, Power Supply Revenue Bonds, Series 2002A, 5.125%, 5/01/18 (Pre-refunded 5/01/12)
5/12 at 101.00
Aaa
   
2,085,760
 
 
3,000
 
California Infrastructure Economic Development Bank, First Lien Revenue Bonds, San Francisco Bay Area Toll Bridge, Series 2003A, 5.000%, 7/01/22 – AGM Insured (ETM)
No Opt. Call
Aaa
   
3,749,850
 
 
370
 
California, Economic Recovery Revenue Bonds, Series 2004A, 5.000%, 7/01/15 (Pre-refunded 7/01/14)
7/14 at 100.00
Aaa
   
419,869
 
 
3,495
 
Orange County Sanitation District, California, Certificates of Participation, Series 2003, 5.250%, 2/01/21 (Pre-refunded 8/01/13) – FGIC Insured
8/13 at 100.00
AAA
   
3,822,691
 
 
325
 
San Mateo Union High School District, San Mateo County, California, Certificates of Participation, Phase 1, Series 2007A, 5.000%, 12/15/30 (Pre-refunded
12/17 at 100.00
AA– (5)
   
401,564
 
         12/15/17) – AMBAC Insured            
 
255
 
University of California, General Revenue Bonds, Series 2003A, 5.125%, 5/15/17 (Pre-refunded 5/15/13) – AMBAC Insured (UB)
5/13 at 100.00
Aa1 (5)
   
275,441
 
 
9,445
 
Total U.S. Guaranteed
       
10,755,175
 
     
Utilities – 7.6% (5.1% of Total Investments)
           
 
890
 
Long Beach Bond Finance Authority, California, Natural Gas Purchase Revenue Bonds, Series 2007A, 5.500%, 11/15/37
No Opt. Call
A
   
821,835
 
 
275
 
Los Angeles Department of Water and Power, California, Power System Revenue Bonds, Series 2003A-2, 5.000%, 7/01/21 – NPFG Insured
7/13 at 100.00
AA–
   
291,770
 
 
295
 
Merced Irrigation District, California, Electric System Revenue Bonds, Series 2005, 5.125%, 9/01/31 – SYNCORA GTY Insured
9/15 at 100.00
N/R
   
266,438
 
 
4,580
 
Sacramento Municipal Utility District, California, Electric Revenue Refunding Bonds, Series 2002Q, 5.250%, 8/15/20 – AGM Insured
8/12 at 100.00
AA+
   
4,749,231
 
 
6,040
 
Total Utilities
       
6,129,274
 
     
Water and Sewer – 7.2% (4.8% of Total Investments)
           
 
1,125
 
Burbank, California, Wastewater System Revenue Bonds, Series 2004A, 5.000%, 6/01/23 – AMBAC Insured
6/14 at 100.00
AA+
   
1,169,775
 
 
205
 
Healdsburg Public Financing Authority, California, Wastewater Revenue Bonds, Series 2006, 5.000%, 4/01/36 – NPFG Insured
4/16 at 100.00
AA–
   
206,870
 
 
34
 
Nuveen Investments

 
 

 
 
 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
Water and Sewer (continued)
           
$
670
 
Metropolitan Water District of Southern California, Waterworks Revenue Bonds, Tender Option Bond Trust 09-8B, 17.115%, 7/01/35 (IF) (6)
7/19 at 100.00
AAA
 
$
843,931
 
 
1,500
 
Orange County Water District, California, Revenue Certificates of Participation, Tender Option Bond Trust 11782-1, 17.486%, 2/15/35 (IF)
8/20 at 100.00
AAA
   
1,793,400
 
 
1,795
 
Woodbridge Irrigation District, California, Certificates of Participation, Water Systems Project, Series 2003, 5.500%, 7/01/33
7/13 at 100.00
A+
   
1,795,158
 
 
5,295
 
Total Water and Sewer
       
5,809,134
 
$
126,034
 
Total Investments (cost $118,175,890) – 149.7%
       
120,480,672
 
     
Floating Rate Obligations – (8.3)%
       
(6,650,000
     
MuniFund Term Preferred Shares, at Liquidation Value – (43.8)% (7)
       
(35,250,000
     
Other Assets Less Liabilities – 2.4%
       
1,918,808
 
     
Net Assets Applicable to Common Shares – 100%
     
$
80,499,480
 
 
(1)
 
All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted.
(2)
 
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. Certain mortgage-backed securities may be subject to periodic principal paydowns.
(3)
 
Ratings: Using the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investor Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies.
(4)
 
For fair value measurement disclosure purposes, investment categorized as Level 3. See Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies, Investment Valuation for more information.
(5)
 
Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities, which ensure the timely payment of principal and interest. Bonds backed by U.S. Government or agency securities are given an implied rating equal to the rating of such securities.
(6)
 
Investment, or portion of investment, has been pledged to collaterize the net payment obligations for investments in inverse floating rate transactions.
(7)
 
MuniFund Term Preferred Shares, at Liquidation Value as a percentage of Total Investments is 29.3%.
N/R
 
Not rated.
WI/DD
 
Purchased on a when-issued or delayed delivery basis.
(ETM)
 
Escrowed to maturity.
(IF)
 
Inverse floating rate investment.
(UB)
 
Underlying bond of an inverse floating rate trust reflected as a financing transaction. See Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies, Inverse Floating Rate Securities for more information.
 
See accompanying notes to financial statements.
 
Nuveen Investments
 
35

 
 

 
 
   
Nuveen California Dividend Advantage Municipal Fund
NAC
 
Portfolio of Investments
   
August 31, 2011 (Unaudited)
 
 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
Consumer Staples – 6.5% (4.5% of Total Investments)
           
$
865
 
California County Tobacco Securitization Agency, Tobacco Settlement Asset-Backed Bonds, Sonoma County Tobacco Securitization Corporation, Series 2005, 4.250%, 6/01/21
6/15 at 100.00
BBB
 
$
805,600
 
 
7,500
 
Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed Bonds, Series 2007A-1, 5.750%, 6/01/47
6/17 at 100.00
Baa3
   
5,314,200
 
 
24,265
 
Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed Bonds, Series 2007A-2, 0.000%, 6/01/37
6/22 at 100.00
BB+
   
15,044,785
 
 
32,630
 
Total Consumer Staples
       
21,164,585
 
     
Education and Civic Organizations – 8.1% (5.6% of Total Investments)
           
 
2,500
 
California Educational Facilities Authority, Revenue Bonds, Santa Clara University, Series 2010, 5.000%, 2/01/40
2/20 at 100.00
Aa3
   
2,569,925
 
 
290
 
California Educational Facilities Authority, Revenue Bonds, University of Redlands, Series 2005A, 5.000%, 10/01/35
10/15 at 100.00
A3
   
272,600
 
 
10,000
 
California Educational Facilities Authority, Revenue Bonds, University of Southern California, Series 2007A, 4.500%, 10/01/33 (UB)
10/17 at 100.00
Aa1
   
10,055,200
 
     
California Educational Facilities Authority, Revenue Bonds, University of the Pacific, Series 2006:
           
 
200
 
5.000%, 11/01/21
11/15 at 100.00
A2
   
212,150
 
 
265
 
5.000%, 11/01/25
11/15 at 100.00
A2
   
273,522
 
 
4,685
 
California State Public Works Board, Lease Revenue Bonds, University of California Regents, Tender Option Bond Trust 1065, 9.061%, 3/01/33 (IF)
3/18 at 100.00
Aa2
   
4,912,035
 
 
1,250
 
California Statewide Communities Development Authority, School Facility Revenue Bonds, Alliance College-Ready Public Schools, Series 2011A, 7.000%, 7/01/46
7/21 at 100.00
N/R
   
1,213,413
 
 
610
 
California Statewide Community Development Authority, Revenue Bonds, Notre Dame de Namur University, Series 2003, 6.500%, 10/01/23
10/13 at 100.00
N/R
   
588,235
 
 
3,000
 
Long Beach Bond Financing Authority, California, Lease Revenue Refunding Bonds, Long Beach Aquarium of the South Pacific, Series 2001, 5.500%, 11/01/17 – AMBAC Insured
11/11 at 100.00
BBB
   
3,010,800
 
 
2,900
 
University of California, General Revenue Bonds, Series 2003A, 5.125%, 5/15/17 – AMBAC Insured (UB)
5/13 at 100.00
Aa1
   
3,106,683
 
 
25,700
 
Total Education and Civic Organizations
       
26,214,563
 
     
Health Care – 30.5% (20.9% of Total Investments)
           
 
2,160
 
California Health Facilities Financing Authority, Health Facility Revenue Bonds, Adventist Health System/West, Series 2003A, 5.000%, 3/01/15
3/13 at 100.00
A
   
2,257,718
 
 
660
 
California Health Facilities Financing Authority, Revenue Bonds, Kaiser Permanante System, Series 2006, 5.000%, 4/01/37
4/16 at 100.00
A+
   
632,412
 
 
14,895
 
California Health Facilities Financing Authority, Revenue Bonds, Sutter Health, Series 2007A, 5.250%, 11/15/46 (UB)
11/16 at 100.00
AA–
   
14,677,384
 
 
6,530
 
California Health Facilities Financing Authority, Revenue Bonds, Sutter Health, Series 2011B, 6.000%, 8/15/42
8/20 at 100.00
AA–
   
7,050,441
 
 
1,120
 
California Statewide Communities Development Authority, Revenue Bonds, Adventist Health System West, Series 2005A, 5.000%, 3/01/35
3/15 at 100.00
A
   
1,066,475
 
 
5,500
 
California Statewide Communities Development Authority, Revenue Bonds, Sutter Health, Series 2011A, 6.000%, 8/15/42
8/20 at 100.00
AA–
   
5,938,350
 
     
California Statewide Communities Development Authority, Revenue Bonds, ValleyCare Health System, Series 2007A:
           
 
710
 
4.800%, 7/15/17
No Opt. Call
N/R
   
702,453
 
 
3,325
 
5.125%, 7/15/31
7/17 at 100.00
N/R
   
2,855,111
 
     
California Statewide Community Development Authority, Revenue Bonds, Daughters of Charity Health System, Series 2005A:
           
 
1,760
 
5.250%, 7/01/24
7/15 at 100.00
BBB
   
1,625,078
 
 
3,870
 
5.250%, 7/01/30
7/15 at 100.00
BBB
   
3,285,204
 

36
 
Nuveen Investments

 
 

 

 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
Health Care (continued)
           
$
10,140
 
California Statewide Community Development Authority, Revenue Bonds, Kaiser Permanante System, Series 2006, 5.000%, 3/01/41
3/16 at 100.00
A+
 
$
9,544,883
 
 
3,095
 
California Statewide Community Development Authority, Revenue Bonds, Kaiser Permanente System, Series 2001C, 5.250%, 8/01/31
8/16 at 100.00
A+
   
3,134,956
 
 
9,980
 
California Statewide Community Development Authority, Revenue Bonds, Kaiser Permanente System, Series 2006, 5.000%, 3/01/41 – BHAC Insured (UB)
3/16 at 100.00
AA+
   
10,025,908
 
 
2,250
 
California Statewide Community Development Authority, Revenue Bonds, Methodist Hospital Project, Series 2009, 6.750%, 2/01/38
8/19 at 100.00
Aa2
   
2,540,768
 
 
1,586
 
California Statewide Communities Development Authority, Revenue Bonds, Saint Joseph Health System, Trust 2554, 18.324%, 7/01/47 – AGM Insured (IF)
7/18 at 100.00
AA+
   
1,620,955
 
 
10,500
 
Duarte, California, Certificates of Participation, City of Hope National Medical Center, Series 1999A, 5.250%, 4/01/31
10/11 at 100.00
A+
   
10,500,420
 
 
1,000
 
Loma Linda, California, Hospital Revenue Bonds, Loma Linda University Medical Center, Series 2005A, 5.000%, 12/01/23
12/15 at 100.00
BBB
   
913,220
 
 
2,860
 
Loma Linda, California, Hospital Revenue Bonds, Loma Linda University Medical Center, Series 2008A, 8.250%, 12/01/38
12/17 at 100.00
BBB
   
3,153,322
 
 
1,000
 
Madera County, California, Certificates of Participation, Children’s Hospital Central California, Series 2010, 5.375%, 3/15/36
3/20 at 100.00
A
   
937,270
 
 
1,725
 
Newport Beach, California, Revenue Bonds, Hoag Memorial Hospital Presbyterian, Series 2011A, 6.000%, 12/01/40
12/21 at 100.00
AA
   
1,896,758
 
 
675
 
Oak Valley Hospital District, Stanislaus County, California, Revenue Bonds, Series 2010A, 6.500%, 11/01/29
11/20 at 100.00
BBB–
   
675,844
 
 
5,450
 
Palomar Pomerado Health Care District, California, Certificates of Participation, Series 2010, 6.000%, 11/01/41
11/20 at 100.00
Baa3
   
5,111,501
 
 
2,570
 
Rancho Mirage Joint Powers Financing Authority, California, Revenue Bonds, Eisenhower Medical Center, Series 2007A, 5.000%, 7/01/38
7/17 at 100.00
Baa1
   
2,260,109
 
 
3,300
 
San Buenaventura, California, Revenue Bonds, Community Memorial Health System, Series 2011, 7.500%, 12/01/41
12/21 at 100.00
BB
   
3,276,009
 
 
3,000
 
Santa Clara County Financing Authority, California, Insured Revenue Bonds, El Camino Hospital, Series 2007A, 5.750%, 2/01/41 – AMBAC Insured
8/17 at 100.00
A+
   
3,053,940
 
 
99,661
 
Total Health Care
       
98,736,489
 
     
Housing/Multifamily – 2.9% (2.0% of Total Investments)
           
 
2,000
 
California Municipal Finance Authority, Mobile Home Park Revenue Bonds, Caritas Projects Series 2010A, 6.400%, 8/15/45
8/20 at 100.00
BBB–
   
1,961,380
 
 
4,785
 
Contra Costa County, California, Multifamily Housing Revenue Bonds, Delta View Apartments Project, Series 1999C, 6.750%, 12/01/30 (Alternative Minimum Tax)
12/11 at 100.00
N/R
   
4,242,285
 
 
320
 
Independent Cities Lease Finance Authority, California, Mobile Home Park Revenue Bonds, San Juan Mobile Estates, Series 2006B, 5.850%, 5/15/41
5/16 at 100.00
N/R
   
282,864
 
 
1,725
 
Rohnert Park Finance Authority, California, Senior Lien Revenue Bonds, Rancho Feliz Mobile Home Park, Series 2003A, 5.750%, 9/15/38
9/13 at 100.00
A+
   
1,727,570
 
 
1,120
 
Rohnert Park Finance Authority, California, Subordinate Lien Revenue Bonds, Rancho Feliz Mobile Home Park, Series 2003B, 6.625%, 9/15/38
9/13 at 100.00
N/R
   
1,122,845
 
 
9,950
 
Total Housing/Multifamily
       
9,336,944
 
     
Housing/Single Family – 0.6% (0.4% of Total Investments)
           
 
410
 
California Housing Finance Agency, Home Mortgage Revenue Bonds, Series 2006H, 5.750%, 8/01/30 – FGIC Insured (Alternative Minimum Tax)
2/16 at 100.00
Baa1
   
410,262
 
 
2,395
 
California Housing Finance Agency, Home Mortgage Revenue Bonds, Tender Option Bond Trust 3206, 8.488%, 2/01/24 (Alternative Minimum Tax) (IF)
2/17 at 100.00
BBB
   
1,515,197
 
 
2,805
 
Total Housing/Single Family
       
1,925,459
 
 
Nuveen Investments
 
37

 
 

 
 
 
 
Nuveen California Dividend Advantage Municipal Fund (continued)
NAC  
Portfolio of Investments
     August 31, 2011 (Unaudited)
 
 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
Industrials – 0.3% (0.2% of Total Investments)
           
$
5,120
 
California Statewide Communities Development Authority, Revenue Bonds, EnerTech Regional Biosolids Project, Series 2007A, 5.500%, 12/01/33 (Alternative Minimum Tax) (4)
No Opt. Call
CCC+
 
$
1,128,141
 
     
Long-Term Care – 2.3% (1.6% of Total Investments)
           
 
1,000
 
California Municipal Finance Authority, Revenue Bonds, Harbor Regional Center Project, Series 2009, 8.000%, 11/01/29
11/19 at 100.00
Baa1
   
1,087,160
 
 
8,500
 
Riverside County Public Financing Authority, California, Certificates of Participation, Air Force Village West, Series 1999, 5.800%, 5/15/29
11/11 at 100.00
BB–
   
6,519,330
 
 
9,500
 
Total Long-Term Care
       
7,606,490
 
     
Tax Obligation/General – 22.6% (15.6% of Total Investments)
           
     
Alvord Unified School District, Riverside County, California, General Obligation Bonds, 2007 Election Series 2011B:
           
 
21,000
 
0.000%, 8/01/41 – AGM Insured
No Opt. Call
AA+
   
2,865,450
 
 
16,840
 
0.000%, 8/01/43 – AGM Insured
No Opt. Call
AA+
   
2,005,139
 
 
10,000
 
California State, General Obligation Bonds, Various Purpose Series 2009, 6.000%, 11/01/39
11/19 at 100.00
A1
   
10,954,100
 
     
California State, General Obligation Bonds, Various Purpose Series 2010:
           
 
5,000
 
6.000%, 3/01/33
3/20 at 100.00
A1
   
5,651,150
 
 
8,000
 
5.500%, 3/01/40
3/20 at 100.00
A1
   
8,333,280
 
 
4,435
 
California, General Obligation Refunding Bonds, Series 2002, 6.000%, 4/01/16 – AMBAC Insured
No Opt. Call
A1
   
5,327,721
 
 
3,425
 
Coast Community College District, Orange County, California, General Obligation Bonds, Series 2006C, 0.000%, 8/01/31 – AGM Insured
8/18 at 100.00
AA+
   
3,132,745
 
 
5,150
 
Hacienda La Puente Unified School District Facilities Financing Authority, California, General Obligation Revenue Bonds, Series 2007, 5.000%, 8/01/26 – AGM Insured
No Opt. Call
AA+
   
5,594,136
 
 
5,210
 
Oak Valley Hospital District, Stanislaus County, California, General Obligation Bonds, Series 2005, 5.000%, 7/01/35 – FGIC Insured
7/14 at 101.00
A1
   
4,918,761
 
 
575
 
Roseville Joint Union High School District, Placer County, California, General Obligation Bonds, Series 2006B, 5.000%, 8/01/27 – FGIC Insured
8/15 at 100.00
AA–
   
595,321
 
 
4,000
 
San Diego Community College District, California, General Obligation Bonds, Refunding Series 2011, 5.000%, 8/01/41
8/21 at 100.00
AA+
   
4,186,120
 
 
5,000
 
San Diego Unified School District, San Diego County, California, General Obligation Bonds, Series 2003E, 5.250%, 7/01/20 – AGM Insured
7/13 at 101.00
AA+
   
5,461,550
 
 
50,070
 
Yosemite Community College District, California, General Obligation Bonds, Capital Appreciation, Election 2004, Series 2010D, 0.000%, 8/01/42
No Opt. Call
Aa2
   
14,292,482
 
 
138,705
 
Total Tax Obligation/General
       
73,317,955
 
     
Tax Obligation/Limited – 36.4% (25.0% 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
   
969,330
 
 
615
 
5.800%, 9/01/35
9/14 at 102.00
N/R
   
572,190
 
 
1,910
 
Borrego Water District, California, Community Facilities District 2007-1 Montesoro, Special Tax Bonds, Series 2007, 5.750%, 8/01/25 (4), (5)
8/17 at 102.00
N/R
   
706,700
 
 
1,990
 
Brentwood Infrastructure Financing Authority, California, Infrastructure Revenue Bonds, Refunding Series 2002A, 5.125%, 9/02/24 – AGM Insured
9/12 at 100.00
AA+
   
2,056,665
 
     
Brentwood Infrastructure Financing Authority, Contra Costa County, California, Capital Improvement Revenue Bonds, Series 2001:
           
 
1,110
 
5.375%, 11/01/18 – AGM Insured
11/11 at 100.00
AA+
   
1,118,270
 
 
1,165
 
5.375%, 11/01/19 – AGM Insured
11/11 at 100.00
AA+
   
1,173,551
 
 
1,000
 
California State Public Works Board, Lease Revenue Bonds, Various Capital Projects, Series 2009G-1, 5.750%, 10/01/30
10/19 at 100.00
A2
   
1,050,340
 
 
2,000
 
California State Public Works Board, Lease Revenue Bonds, Various Capital Projects, Series 2009I-1, 6.375%, 11/01/34
11/19 at 100.00
A2
   
2,174,680
 
 
38
 
Nuveen Investments

 
 

 
 
 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
Tax Obligation/Limited (continued)
           
$
2,000
 
Capistrano Unified School District, Orange County, California, Special Tax Bonds, Community Facilities District 90-2 – Talega, Series 2003, 6.000%, 9/01/33
9/13 at 100.00
N/R
 
$
2,005,960
 
 
710
 
Capistrano Unified School District, Orange County, California, Special Tax Bonds, Community Facilities District, Series 2005, 5.000%, 9/01/24 – FGIC Insured
9/15 at 100.00
BBB
   
702,644
 
 
1,225
 
Chino Redevelopment Agency, California, Merged Chino Redevelopment Project Area Tax Allocation Bonds, Series 2006, 5.000%, 9/01/38 – AMBAC Insured
9/16 at 101.00
A–
   
1,060,752
 
 
695
 
National City Community Redevelopment Agency, California, Tax Allocation Revenue Bonds, National City Redevelopment Project Area, Series 2011, 6.500%, 8/01/24
8/21 at 100.00
A–
   
724,864
 
 
3,490
 
Fontana, California, Senior Special Tax Refunding Bonds, Heritage Village Community Facilities District 2, Series 1998A, 5.250%, 9/01/17 – NPFG Insured
3/12 at 100.00
Baa1
   
3,512,406
 
 
1,125
 
Fontana, California, Special Tax Bonds, Sierra Community Facilities District 22, Series 2004, 6.000%, 9/01/34
9/14 at 100.00
N/R
   
1,080,338
 
 
3,980
 
Garden Grove, California, Certificates of Participation, Financing Project, Series 2002A, 5.500%, 3/01/22 – AMBAC Insured
3/12 at 101.00
A
   
4,098,564
 
 
31,090
 
Golden State Tobacco Securitization Corporation, California, Enhanced Tobacco Settlement Asset-Backed Revenue Bonds, Series 2005A, 5.000%, 6/01/35 – FGIC Insured
6/15 at 100.00
AA+
   
29,553,843
 
 
2,850
 
Hesperia Community Redevelopment Agency, California, Tax Allocation Bonds, Series 2005A, 5.000%, 9/01/35 – SYNCORA GTY Insured
9/15 at 100.00
BBB–
   
2,307,417
 
 
4,500
 
Inglewood Redevelopment Agency, California, Tax Allocation Refunding Bonds, Merged Area Redevelopment Project, Series 1998A, 5.250%, 5/01/23 – AMBAC Insured
No Opt. Call
N/R
   
4,488,030
 
     
Irvine, California, Unified School District, Community Facilities District Special Tax Bonds, Series 2006A:
           
 
325
 
5.000%, 9/01/26
9/16 at 100.00
N/R
   
308,549
 
 
755
 
5.125%, 9/01/36
9/16 at 100.00
N/R
   
678,096
 
 
675
 
Lammersville School District, San Joaquin County, California, Community Facilities District 2002, Mountain House Special Tax Bonds, Series 2006, 5.125%, 9/01/35
9/16 at 100.00
N/R
   
570,179
 
 
2,000
 
Lee Lake Water District, Riverside County, California, Special Tax Bonds, Community Facilities District 1 of Sycamore Creek, Series 2003, 6.500%, 9/01/24
9/13 at 102.00
N/R
   
2,070,220
 
 
1,000
 
Lindsay Redevelopment Agency, California, Project 1 Tax Allocation Bonds, Series 2007, 5.000%, 8/01/37 – RAAI Insured
8/17 at 100.00
BBB+
   
851,290
 
 
1,290
 
Los Angeles Community Redevelopment Agency, California, Lease Revenue Bonds, Manchester Social Services Project, Series 2005, 5.000%, 9/01/37 – AMBAC Insured
9/15 at 100.00
A1
   
1,163,490
 
 
1,530
 
Moreno Valley Unified School District, Riverside County, California, Certificates of Participation, Series 2005, 5.000%, 3/01/24 – AGM Insured
3/14 at 100.00
AA+
   
1,575,487
 
 
3,500
 
Murrieta Redevelopment Agency, California, Tax Allocation Bonds, Series 2007A, 5.000%, 8/01/37 – NPFG Insured
8/17 at 100.00
A–
   
3,046,680
 
 
9,200
 
Norco Redevelopment Agency, California, Tax Allocation Refunding Bonds, Project Area 1, Series 2001, 5.000%, 3/01/19 – NPFG Insured
3/13 at 100.00
A
   
9,303,500
 
     
North Natomas Community Facilities District 4, Sacramento, California, Special Tax Bonds, Series 2006D:
           
 
535
 
5.000%, 9/01/26
9/14 at 102.00
N/R
   
485,031
 
 
245
 
5.000%, 9/01/33
9/14 at 102.00
N/R
   
207,875
 
 
260
 
Novato Redevelopment Agency, California, Tax Allocation Bonds, Hamilton Field Redevelopment Project, Series 2011, 6.750%, 9/01/40
9/21 at 100.00
A–
   
271,328
 
 
3,290
 
Oakland Redevelopment Agency, California, Subordinate Lien Tax Allocation Bonds, Central District Redevelopment Project, Series 2003, 5.500%, 9/01/16 – FGIC Insured
3/13 at 100.00
A–
   
3,387,581
 
 
5,600
 
Palm Springs Financing Authority, California, Lease Revenue Refunding Bonds, Convention Center Project, Series 2001A, 5.000%, 11/01/22 – NPFG Insured
11/11 at 101.00
Baa1
   
5,660,592
 
 
1,000
 
Palmdale Community Redevelopment Agency, California, Tax Allocation Bonds, Merged Redevelopment Project Areas, Series 2004, 5.000%, 12/01/24 – AMBAC Insured
12/14 at 100.00
A–
   
960,490
 
 
1,570
 
Poway Redevelopment Agency, California, Tax Allocation Refunding Bonds, Paguay Redevelopment Project, Series 2000, 5.750%, 6/15/33 – NPFG Insured
12/12 at 100.00
Baa1
   
1,533,655
 
 
Nuveen Investments
 
39

 
 

 

 
 
Nuveen California Dividend Advantage Municipal Fund (continued)
NAC
 
Portfolio of Investments
     August 31, 2011 (Unaudited)
 
 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
Tax Obligation/Limited (continued)
           
$
845
 
Rancho Santa Fe CSD Financing Authority, California, Revenue Bonds, Superior Lien Series 2011A, 5.750%, 9/01/30
9/21 at 100.00
BBB+
 
$
857,193
 
 
620
 
Rialto Redevelopment Agency, California, Tax Allocation Bonds, Merged Project Area, Series 2005A, 5.000%, 9/01/35 – SYNCORA GTY Insured
9/15 at 100.00
A–
   
543,814
 
 
150
 
Riverside County Redevelopment Agency, California, Tax Allocation Bonds, Jurupa Valley Project Area, Series 2011-B, 6.500%, 10/01/25
10/21 at 100.00
A–
   
155,603
 
 
1,860
 
Riverside Redevelopment Agency, California, Tax Allocation Refunding Bonds, Merged Project Areas, Series 2003, 5.250%, 8/01/22 – NPFG Insured
8/13 at 100.00
A–
   
1,868,444
 
 
770
 
Roseville, California, Certificates of Participation, Public Facilities, Series 2003A, 5.000%, 8/01/25 – AMBAC Insured
8/13 at 100.00
AA–
   
776,822
 
 
2,500
 
Sacramento City Financing Authority, California, Lease Revenue Refunding Bonds, Series 1993A, 5.400%, 11/01/20 – AMBAC Insured
No Opt. Call
A1
   
2,719,200
 
 
1,150
 
Sacramento, California, Special Tax Bonds, North Natomas Community Facilities District 4, Series 2003C, 6.000%, 9/01/33
9/14 at 100.00
N/R
   
1,123,930
 
 
120
 
San Francisco Redevelopment Finance Authority, California, Tax Allocation Revenue Bonds, Mission Bay North Redevelopment Project, Series 2011C, 6.750%, 8/01/41
2/21 at 100.00
A–
   
127,228
 
     
San Francisco Redevelopment Financing Authority, California, Tax Allocation Revenue Bonds, Mission Bay South Redevelopment Project, Series 2011D:
           
 
125
 
7.000%, 8/01/33
2/21 at 100.00
BBB
   
131,589
 
 
155
 
7.000%, 8/01/41
2/21 at 100.00
BBB
   
162,607
 
 
2,695
 
San Jose Financing Authority, California, Lease Revenue Refunding Bonds, Civic Center Project, Series 2002B, 5.250%, 6/01/19 – AMBAC Insured
6/12 at 100.00
AA+
   
2,769,274
 
 
1,000
 
San Jose Redevelopment Agency, California, Housing Set-Aside Tax Allocation Bonds, Merged Area Redevelopment Project, Series 2010A-1, 5.500%, 8/01/35
8/20 at 100.00
A
   
940,500
 
 
5,000
 
Santa Ana Community Redevelopment Agency, California, Tax Allocation Bonds, Merged Project Area, Series 2011A, 6.750%, 9/01/28
3/21 at 100.00
A
   
5,413,450
 
 
205
 
Signal Hill Redevelopment Agency, California, Project 1 Tax Allocation Bonds, Series 2011, 7.000%, 10/01/26
4/21 at 100.00
N/R
   
206,261
 
 
1,200
 
Turlock Public Financing Authority, California, Tax Allocation Revenue Bonds, Series 2011, 7.500%, 9/01/39
3/21 at 100.00
BBB+
   
1,263,480
 
 
1,000
 
Washington Unified School District, Yolo County, California, Certificates of Participation, Series 2007, 5.125%, 8/01/37 – AMBAC Insured
8/17 at 100.00
A
   
1,005,530
 
 
600
 
West Patterson Financing Authority, California, Special Tax Bonds, Community Facilities District 01-1, Refunding Series 2009A, 8.625%, 9/01/39
9/14 at 105.00
N/R
   
640,212
 
 
2,810
 
West Patterson Financing Authority, California, Special Tax Bonds, Community Facilities District 01-1, Series 2003B, 7.000%, 9/01/38
9/13 at 103.00
N/R
   
2,645,250
 
 
2,000
 
West Patterson Financing Authority, California, Special Tax Bonds, Community Facilities District 01-1, Series 2004B, 6.000%, 9/01/39
9/13 at 102.00
N/R
   
1,646,920
 
 
1,350
 
West Patterson Financing Authority, California, Special Tax Bonds, Community Facilities District 2001-1, Series 2004A, 6.125%, 9/01/39
9/13 at 103.00
N/R
   
1,131,260
 
     
Yorba Linda Redevelopment Agency, Orange County, California, Tax Allocation Revenue Bonds, Yorba Linda Redevelopment Project, Subordinate Lien Series 2011A:
           
 
150
 
6.000%, 9/01/26
9/21 at 100.00
A–
   
157,239
 
 
210
 
6.500%, 9/01/32
9/21 at 100.00
A–
   
218,933
 
 
121,745
 
Total Tax Obligation/Limited
       
117,935,326
 
     
Transportation – 3.6% (2.4% of Total Investments)
           
 
1,430
 
Bay Area Toll Authority, California, Revenue Bonds, San Francisco Bay Area Toll Bridge, Series 2006F, 5.000%, 4/01/31 (UB)
4/16 at 100.00
AA
   
1,478,105
 
 
11,150
 
Foothill/Eastern Transportation Corridor Agency, California, Toll Road Revenue Refunding Bonds, Series 1999, 5.750%, 1/15/40
1/12 at 100.00
BBB–
   
9,966,651
 
 
40
 
Nuveen Investments

 
 

 
 
 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
Transportation (continued)
           
$
120
 
Palm Springs Financing Authority, California, Palm Springs International Airport Revenue Bonds, Series 2006, 5.450%, 7/01/20 (Alternative Minimum Tax)
7/14 at 102.00
N/R
 
$
108,032
 
 
12,700
 
Total Transportation
       
11,552,788
 
     
U.S. Guaranteed – 15.0% (10.3% of Total Investments) (6)
           
 
9,750
 
California Department of Water Resources, Power Supply Revenue Bonds, Series 2002A, 5.125%, 5/01/18 (Pre-refunded 5/01/12)
5/12 at 101.00
Aaa
   
10,168,080
 
 
115
 
California Department of Water Resources, Water System Revenue Bonds, Central Valley Project, Series 2001W, 5.250%, 12/01/22 (Pre-refunded 12/01/11) – AGM Insured
12/11 at 100.00
AAA
   
116,473
 
 
715
 
California Statewide Community Development Authority, Revenue Bonds, Thomas Jefferson School of Law, Series 2005A, 4.875%, 10/01/31 (Pre-refunded 10/01/15)
10/15 at 100.00
N/R (6)
   
801,172
 
 
3,250
 
Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed Bonds, Series 2003A-1, 6.250%, 6/01/33 (Pre-refunded 6/01/13)
6/13 at 100.00
Aaa
   
3,519,620
 
 
1,940
 
Lincoln, California, Special Tax Bonds, Lincoln Crossing Community Facilities District 03-1, Series 2003A, 6.500%, 9/01/25 (Pre-refunded 9/01/13)
9/13 at 102.00
N/R (6)
   
2,200,833
 
 
1,335
 
Lincoln, California, Special Tax Bonds, Lincoln Crossing Community Facilities District 03-1, Series 2004, 6.000%, 9/01/34 (Pre-refunded 9/01/13)
9/13 at 102.00
N/R (6)
   
1,501,261
 
 
10,845
 
Los Angeles Unified School District, California, General Obligation Bonds, Series 2002E, 5.000%, 7/01/19 (Pre-refunded 7/01/12) – NPFG Insured
7/12 at 100.00
AA– (6)
   
11,282,379
 
 
5,840
 
Orange County Water District, California, Revenue Certificates of Participation, Series 1999A, 5.375%, 8/15/29 (ETM)
11/11 at 100.00
N/R (6)
   
7,411,894
 
 
5,115
 
San Francisco City and County Public Utilities Commission, California, Water Revenue Bonds, Series 2002A, 5.000%, 11/01/18 (Pre-refunded 11/01/12) – NPFG Insured
11/12 at 100.00
AA– (6)
   
5,397,962
 
 
2,860
 
Tobacco Securitization Authority of Southern California, Tobacco Settlement Asset-Backed Bonds, San Diego County Tobacco Asset Securitization Corporation, Senior Series 2001A, 5.250%, 6/01/27 (Pre-refunded 6/01/12)
6/12 at 100.00
Aaa
   
2,968,280
 
 
600
 
University of California, General Revenue Bonds, Series 2003A, 5.125%, 5/15/17 (Pre-refunded 5/15/13) – AMBAC Insured (UB)
5/13 at 100.00
Aa1 (6)
   
648,096
 
 
2,500
 
Whittier, California, Health Facility Revenue Bonds, Presbyterian Intercommunity Hospital, Series 2002, 5.600%, 6/01/22 (Pre-refunded 6/01/12)
6/12 at 101.00
N/R (6)
   
2,626,175
 
 
44,865
 
Total U.S. Guaranteed
       
48,642,225
 
     
Utilities – 4.3% (3.0% of Total Investments)
           
 
3,630
 
Imperial Irrigation District, California, Certificates of Participation, Electric System Revenue Bonds, Series 2003, 5.250%, 11/01/23 – AGM Insured
11/13 at 100.00
AA+
   
3,904,900
 
 
3,775
 
Long Beach Bond Finance Authority, California, Natural Gas Purchase Revenue Bonds, Series 2007A, 5.000%, 11/15/35
No Opt. Call
A
   
3,279,947
 
 
5,500
 
Los Angeles Department of Water and Power, California, Power System Revenue Bonds, Series 2005A-1, 5.000%, 7/01/31 – AGM Insured (UB)
7/15 at 100.00
AA+
   
5,656,915
 
 
1,270
 
Merced Irrigation District, California, Electric System Revenue Bonds, Series 2005, 5.125%, 9/01/31 – SYNCORA GTY Insured
9/15 at 100.00
N/R
   
1,147,039
 
 
14,175
 
Total Utilities
       
13,988,801
 
     
Water and Sewer – 12.3% (8.5% of Total Investments)
           
 
875
 
Healdsburg Public Financing Authority, California, Wastewater Revenue Bonds, Series 2006, 5.000%, 4/01/36 – NPFG Insured
4/16 at 100.00
AA–
   
882,980
 
 
2,500
 
Indio Water Authority, California, Water Revenue Bonds, Series 2006, 5.000%, 4/01/31 – AMBAC Insured
4/16 at 100.00
A+
   
2,546,500
 
 
9,955
 
Los Angeles Department of Water and Power, California, Waterworks Revenue Bonds, Series 2011A, 5.250%, 7/01/39
1/21 at 100.00
AA
   
10,758,667
 
 
835
 
Marina Coast Water District, California, Enterprise Certificate of Participation, Series 2006, 5.000%, 6/01/31 – NPFG Insured
6/16 at 100.00
AA–
   
845,847
 
 
Nuveen Investments
 
41

 
 

 

 
 
Nuveen California Dividend Advantage Municipal Fund (continued)
NAC
  Portfolio of Investments
   
August 31, 2011 (Unaudited)
 
 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
Water and Sewer (continued)
           
$
8,250
 
Pico Rivera Water Authority, California, Revenue Bonds, Series 2001A, 6.250%, 12/01/32
12/11 at 102.00
N/R
 
$
8,134,583
 
 
2,250
 
Sacramento County Sanitation District Financing Authority, California, Revenue Bonds, Series 2006, 5.000%, 12/01/31 – FGIC Insured
6/16 at 100.00
AA
   
2,340,900
 
 
11,000
 
San Diego Public Facilities Financing Authority, California, Sewerage Revenue Bonds, Refunding Series 2010A, 5.250%, 5/15/26
5/20 at 100.00
Aa3
   
12,262,800
 
 
2,000
 
West Basin Municipal Water District, California, Certificates of Participation, Refunding Series 2008B, 5.000%, 8/01/28 – AGC Insured
8/18 at 100.00
AA+
   
2,079,877
 
 
37,665
 
Total Water and Sewer
       
39,852,154
 
$
555,221
 
Total Investments (cost $474,080,086) – 145.4%
       
471,401,920
 
     
Floating Rate Obligations – (8.8)%
       
(28,545,000
     
Variable Rate Demand Preferred Shares, at Liquidation Value – (42.0)% (7)
       
(136,200,000
     
Other Assets Less Liabilities – 5.4%
       
17,546,724
 
     
Net Assets Applicable to Common Shares – 100%
     
$
324,203,644
 
 
(1)
 
All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted.
(2)
 
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. Certain mortgage-backed securities may be subject to periodic principal paydowns.
(3)
 
Ratings: Using the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investor Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies.
(4)
 
At or subsequent to the end of the reporting period, this security is non-income producing. Non-income producing security, in the case of a bond, generally denotes that the issuer has (1) defaulted on the payment of principal or interest, (2) is under the protection of the Federal Bankruptcy Court or (3) the Fund’s Adviser has concluded that the issue is not likely to meet its future interest payment obligations and has directed the Fund’s custodian to cease accruing additional income on the Fund’s records.
(5)
 
For fair value measurement disclosure purposes, investment categorized as Level 3. See Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies, Investment Valuation for more information.
(6)
 
Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities, which ensure the timely payment of principal and interest. Bonds backed by U.S. Government or agency securities are given an implied rating equal to the rating of such securities.
(7)
 
Variable Rate Demand Preferred Shares, at Liquidation Value as a percentage of Total Investments is 28.9%.
N/R
 
Not rated.
(ETM)
 
Escrowed to maturity.
(IF)
 
Inverse floating rate investment.
(UB)
 
Underlying bond of an inverse floating rate trust reflected as a financing transaction. See Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies, Inverse Floating Rate Securities for more information.
 
See accompanying notes to financial statements.
 
42
 
Nuveen Investments

 
 

 
 
   
Nuveen California Dividend Advantage Municipal Fund 2
NVX
 
Portfolio of Investments
   
August 31, 2011 (Unaudited)
 
 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
Consumer Staples – 7.1% (4.8% of Total Investments)
           
$
535
 
California County Tobacco Securitization Agency, Tobacco Settlement Asset-Backed Bonds, Sonoma County Tobacco Securitization Corporation, Series 2005, 4.250%, 6/01/21
6/15 at 100.00
BBB
 
$
498,262
 
 
3,940
 
California County Tobacco Securitization Agency, Tobacco Settlement Asset-Backed Bonds, Stanislaus County Tobacco Funding Corporation, Series 2002A, 5.500%, 6/01/33
6/12 at 100.00
Baa3
   
3,273,234
 
 
4,000
 
Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed Bonds, Series 2007A-1, 5.750%, 6/01/47
6/17 at 100.00
Baa3
   
2,834,240
 
 
13,480
 
Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed Bonds, Series 2007A-2, 0.000%, 6/01/37
6/22 at 100.00
BB+
   
8,357,870
 
 
21,955
 
Total Consumer Staples
       
14,963,606
 
     
Education and Civic Organizations – 10.3% (7.0% of Total Investments)
           
 
2,000
 
California Educational Facilities Authority, Revenue Bonds, Stanford University, Series 2001Q, 5.250%, 12/01/32
12/11 at 101.00
AAA
   
2,026,300
 
 
2,745
 
California Educational Facilities Authority, Revenue Bonds, University of Southern California, Tender Option Bond Trust 09-11B, 17.294%, 10/01/38 (IF) (4)
10/18 at 100.00
Aa1
   
3,377,887
 
     
California Educational Facilities Authority, Revenue Bonds, University of the Pacific, Series 2006:
           
 
125
 
5.000%, 11/01/21
11/15 at 100.00
A2
   
132,594
 
 
165
 
5.000%, 11/01/25
11/15 at 100.00
A2
   
170,306
 
 
2,250
 
California Educational Facilities Authority, Student Loan Revenue Bonds, Cal Loan Program, Series 2001A, 5.400%, 3/01/21 – NPFG Insured (Alternative Minimum Tax)
3/12 at 100.00
Baa1
   
2,251,463
 
 
2,500
 
California Municipal Finance Authority, Revenue Bonds, University of La Verne, Series 2010A, 6.250%, 6/01/40
6/20 at 100.00
Baa2
   
2,552,000
 
 
2,945
 
California State Public Works Board, Lease Revenue Bonds, University of California Regents, Tender Option Bond Trust 1065, 9.061%, 3/01/33 (IF)
3/18 at 100.00
Aa2
   
3,087,715
 
 
850
 
California Statewide Communities Development Authority, School Facility Revenue Bonds, Alliance College-Ready Public Schools, Series 2011A, 7.000%, 7/01/46
7/21 at 100.00
N/R
   
825,121
 
 
615
 
California Statewide Community Development Authority, Revenue Bonds, Notre Dame de Namur University, Series 2003, 6.500%, 10/01/23
10/13 at 100.00
N/R
   
593,057
 
 
3,000
 
Long Beach Bond Financing Authority, California, Lease Revenue Refunding Bonds, Long Beach Aquarium of the South Pacific, Series 2001, 5.250%, 11/01/30 – AMBAC Insured
11/11 at 101.00
BBB
   
2,904,690
 
 
2,680
 
University of California, General Revenue Bonds, Series 2003A, 5.000%, 5/15/33 – AMBAC Insured (UB)
5/13 at 100.00
AA+
   
2,699,189
 
 
1,315
 
University of California, Limited Project Revenue Bonds, Series 2007D, 5.000%, 5/15/41 – FGIC Insured
5/16 at 101.00
Aa2
   
1,333,463
 
 
21,190
 
Total Education and Civic Organizations
       
21,953,785
 
     
Health Care – 26.8% (18.2% of Total Investments)
           
 
2,000
 
California Health Facilities Financing Authority, Revenue Bonds, Casa Colina Inc., Series 2001, 6.000%, 4/01/22
4/12 at 100.00
BBB+
   
2,014,760
 
 
415
 
California Health Facilities Financing Authority, Revenue Bonds, Kaiser Permanante System, Series 2006, 5.000%, 4/01/37
4/16 at 100.00
A+
   
397,653
 
 
1,755
 
California Health Facilities Financing Authority, Revenue Bonds, Sutter Health, Series 2007A, 5.250%, 11/15/46
11/16 at 100.00
AA–
   
1,729,359
 
 
9,260
 
California Health Facilities Financing Authority, Revenue Bonds, Sutter Health, Series 2007A, 5.250%, 11/15/46 (UB)
11/16 at 100.00
AA–
   
9,124,711
 
 
4,215
 
California Municipal Financing Authority, Certificates of Participation, Community Hospitals of Central California, Series 2007, 5.250%, 2/01/27
2/17 at 100.00
Baa2
   
3,968,338
 
 
2,520
 
California Statewide Communities Development Authority, Revenue Bonds, Adventist Health System West, Series 2005A, 5.000%, 3/01/35
3/15 at 100.00
A
   
2,399,569
 
 
Nuveen Investments
 
43

 
 

 
 
   
Nuveen California Dividend Advantage Municipal Fund 2 (continued)
NVX
 
Portfolio of Investments
     August 31, 2011 (Unaudited)
 
 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
Health Care (continued)
           
     
California Statewide Communities Development Authority, Revenue Bonds, ValleyCare Health System, Series 2007A:
           
$
705
 
4.800%, 7/15/17
No Opt. Call
N/R
 
$
697,506
 
 
2,225
 
5.125%, 7/15/31
7/17 at 100.00
N/R
   
1,910,563
 
 
2,185
 
California Statewide Community Development Authority, Health Facility Revenue Refunding Bonds, Memorial Health Services, Series 2003A, 6.000%, 10/01/11
No Opt. Call
AA–
   
2,195,138
 
 
2,500
 
California Statewide Community Development Authority, Hospital Revenue Bonds, Monterey Peninsula Hospital, Series 2003B, 5.250%, 6/01/18 – AGM Insured
6/13 at 100.00
AA+
   
2,650,575
 
 
5,250
 
California Statewide Community Development Authority, Revenue Bonds, Daughters of Charity Health System, Series 2005A, 5.250%, 7/01/35
7/15 at 100.00
BBB
   
4,301,220
 
 
425
 
California Statewide Community Development Authority, Revenue Bonds, Kaiser Permanente System, Series 2001C, 5.250%, 8/01/31
8/16 at 100.00
A+
   
430,487
 
 
1,000
 
California Statewide Community Development Authority, Revenue Bonds, Sutter Health, Series 2004D, 5.050%, 8/15/38 – AGM Insured
8/18 at 100.00
AA+
   
1,003,170
 
     
California Statewide Community Development Authority, Revenue Bonds, Sutter Health, Series 2005A:
           
 
2,705
 
5.000%, 11/15/43
11/15 at 100.00
AA–
   
2,572,076
 
 
3,315
 
5.000%, 11/15/43 (UB)
11/15 at 100.00
AA–
   
3,152,101
 
     
California Statewide Communities Development Authority, Revenue Bonds, Saint Joseph Health System, Trust 2554:
           
 
1,325
 
18.291%, 7/01/47 – AGM Insured (IF)
7/18 at 100.00
AA+
   
1,354,203
 
 
998
 
18.324%, 7/01/47 – AGM Insured (IF)
7/18 at 100.00
AA+
   
1,019,485
 
 
2,000
 
Loma Linda, California, Hospital Revenue Bonds, Loma Linda University Medical Center, Series 2008A, 8.250%, 12/01/38
12/17 at 100.00
BBB
   
2,205,120
 
 
1,610
 
Madera County, California, Certificates of Participation, Children’s Hospital Central California, Series 2010, 5.375%, 3/15/36
3/20 at 100.00
A
   
1,509,005
 
 
455
 
Oak Valley Hospital District, Stanislaus County, California, Revenue Bonds, Series 2010A, 6.500%, 11/01/29
11/20 at 100.00
BBB–
   
455,569
 
 
4,800
 
Palomar Pomerado Health Care District, California, Certificates of Participation, Series 2010, 6.000%, 11/01/41
11/20 at 100.00
Baa3
   
4,501,872
 
 
5,785
 
Rancho Mirage Joint Powers Financing Authority, California, Revenue Bonds, Eisenhower Medical Center, Series 2007A, 5.000%, 7/01/38
7/17 at 100.00
Baa1
   
5,087,445
 
 
2,250
 
San Buenaventura, California, Revenue Bonds, Community Memorial Health System, Series 2011, 7.500%, 12/01/41
12/21 at 100.00
BB
   
2,233,643
 
 
59,698
 
Total Health Care
       
56,913,568
 
     
Housing/Multifamily – 5.8% (4.0% of Total Investments)
           
 
1,325
 
California Municipal Finance Authority, Mobile Home Park Revenue Bonds, Caritas Projects Series 2010A, 6.400%, 8/15/45
8/20 at 100.00
BBB–
   
1,299,414
 
 
5,962
 
California Statewide Community Development Authority, Multifamily Housing Revenue Refunding Bonds, Claremont Village Apartments, Series 2001D, 5.500%, 6/01/31 (Mandatory put 6/01/16) (Alternative Minimum Tax)
6/13 at 100.00
AA+
   
6,091,137
 
 
205
 
Independent Cities Lease Finance Authority, California, Mobile Home Park Revenue Bonds, San Juan Mobile Estates, Series 2006B, 5.850%, 5/15/41
5/16 at 100.00
N/R
   
181,210
 
 
1,055
 
Rohnert Park Finance Authority, California, Senior Lien Revenue Bonds, Rancho Feliz Mobile Home Park, Series 2003A, 5.750%, 9/15/38
9/13 at 100.00
A+
   
1,056,572
 
 
700
 
Rohnert Park Finance Authority, California, Subordinate Lien Revenue Bonds, Rancho Feliz Mobile Home Park, Series 2003B, 6.625%, 9/15/38
9/13 at 100.00
N/R
   
701,778
 
 
3,045
 
Yucaipa Redevelopment Agency, California, Mobile Home Park Revenue Bonds, Rancho del Sol and Grandview, Series 2001A, 6.750%, 5/15/36
11/11 at 102.00
N/R
   
3,063,757
 
 
12,292
 
Total Housing/Multifamily
       
12,393,868
 
 
44
 
Nuveen Investments

 
 

 
 
 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
Housing/Single Family – 2.7% (1.8% of Total Investments)
           
$
250
 
California Housing Finance Agency, Home Mortgage Revenue Bonds, Series 2006H, 5.750%, 8/01/30 – FGIC Insured (Alternative Minimum Tax)
2/16 at 100.00
Baa1
 
$
250,160
 
 
5,775
 
California Housing Finance Agency, Home Mortgage Revenue Bonds, Series 2006M, 4.650%, 8/01/31 (Alternative Minimum Tax)
2/16 at 100.00
Baa1
   
4,981,053
 
 
375
 
California Rural Home Mortgage Finance Authority, Mortgage-Backed Securities Program Single Family Mortgage Revenue Bonds, Series 2001A, 5.650%, 12/01/31 (Alternative Minimum Tax)
12/11 at 102.00
A–
   
391,080
 
 
6,400
 
Total Housing/Single Family
       
5,622,293
 
     
Industrials – 0.3% (0.2% of Total Investments)
           
 
3,175
 
California Statewide Communities Development Authority, Revenue Bonds, EnerTech Regional Biosolids Project, Series 2007A, 5.500%, 12/01/33 (Alternative Minimum Tax) (5)
No Opt. Call
CCC+
   
699,580
 
     
Long-Term Care – 2.4% (1.6% of Total Investments)
           
 
1,550
 
California Health Facilities Financing Authority, Cal-Mortgage Insured Revenue Bonds, Northern California Retired Officers Community Corporation – Paradise Valley Estates, Series 2002, 5.125%, 1/01/22
1/13 at 100.00
A–
   
1,578,706
 
 
3,750
 
California Statewide Communities Development Authority, Revenue Bonds, Inland Regional Center Project, Series 2007, 5.375%, 12/01/37
12/17 at 100.00
Baa1
   
3,479,063
 
 
5,300
 
Total Long-Term Care
       
5,057,769
 
     
Tax Obligation/General – 22.9% (15.6% of Total Investments)
           
 
10,000
 
California State, General Obligation Bonds, Series 2006CD, 4.600%, 12/01/32 (Alternative Minimum Tax)
12/15 at 100.00
AA
   
9,130,900
 
 
13,850
 
California State, General Obligation Bonds, Various Purpose Series 2009, 6.000%, 4/01/38
No Opt. Call
A1
   
15,120,599
 
 
2,000
 
California State, General Obligation Bonds, Various Purpose Series 2010, 6.000%, 3/01/33
3/20 at 100.00
A1
   
2,260,460
 
 
3,615
 
Colton Joint Unified School District, San Bernardino County, California, General Obligation Bonds, Series 2002A, 5.500%, 8/01/22 – FGIC Insured
8/12 at 102.00
Aa3
   
3,813,753
 
     
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
Aa1
   
3,112,609
 
 
3,300
 
5.000%, 8/01/22 – FGIC Insured
8/12 at 100.00
Aa1
   
3,405,435
 
 
1,285
 
Los Angeles Unified School District, Los Angeles County, California, General Obligation Bonds, Series 2009D, 5.000%, 7/01/27
7/19 at 100.00
Aa2
   
1,379,101
 
 
2,000
 
Puerto Rico, General Obligation and Public Improvement Bonds, Series 2002A, 5.500%, 7/01/20 – NPFG Insured
No Opt. Call
Baa1
   
2,190,880
 
 
355
 
Roseville Joint Union High School District, Placer County, California, General Obligation Bonds, Series 2006B, 5.000%, 8/01/27 – FGIC Insured
8/15 at 100.00
AA–
   
367,546
 
 
1,000
 
Southwestern Community College District, San Diego County, California, General Obligation Bonds, Election of 2008, Series 2011C, 5.250%, 8/01/36
8/21 at 100.00
Aa2
   
1,045,980
 
     
Yosemite Community College District, California, General Obligation Bonds, Capital Appreciation, Election 2004, Series 2010D:
           
 
6,480
 
0.000%, 8/01/31
No Opt. Call
Aa2
   
1,833,646
 
 
17,510
 
0.000%, 8/01/42
No Opt. Call
Aa2
   
4,998,230
 
 
64,400
 
Total Tax Obligation/General
       
48,659,139
 
     
Tax Obligation/Limited – 17.0% (11.6% of Total Investments)
           
     
Beaumont Financing Authority, California, Local Agency Revenue Bonds, Series 2004D:
           
 
650
 
5.500%, 9/01/24
9/14 at 102.00
N/R
   
630,065
 
 
385
 
5.800%, 9/01/35
9/14 at 102.00
N/R
   
358,200
 
 
1,190
 
Borrego Water District, California, Community Facilities District 2007-1 Montesoro, Special Tax Bonds, Series 2007, 5.750%, 8/01/25 (5), (6)
8/17 at 102.00
N/R
   
440,300
 
 
4,900
 
California State Public Works Board, Lease Revenue Bonds, Department of Corrections, Series 2003C, 5.500%, 6/01/16
12/13 at 100.00
A2
   
5,212,032
 
 
Nuveen Investments
 
45

 
 

 
 
   
Nuveen California Dividend Advantage Municipal Fund 2 (continued)
NVX
 
Portfolio of Investments
     August 31, 2011 (Unaudited)
 
 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
Tax Obligation/Limited (continued)
           
$
1,245
 
California, Economic Recovery Revenue Bonds, Series 2004A, 5.000%, 7/01/15
7/14 at 100.00
Aa3
 
$
1,389,881
 
 
1,200
 
Capistrano Unified School District, Orange County, California, Special Tax Bonds, Community Facilities District 90-2 – Talega, Series 2003, 6.000%, 9/01/33
9/13 at 100.00
N/R
   
1,203,576
 
 
435
 
Capistrano Unified School District, Orange County, California, Special Tax Bonds, Community Facilities District, Series 2005, 5.000%, 9/01/24 – FGIC Insured
9/15 at 100.00
BBB
   
430,493
 
 
475
 
National City Redevelopment Agency, California, Tax Allocation Revenue Bonds, National City Redevelopment Project Area, Series 2011, 6.500%, 8/01/24
8/21 at 100.00
A–
   
495,411
 
 
750
 
Fontana, California, Special Tax Bonds, Sierra Community Facilities District 22, Series 2004, 6.000%, 9/01/34
9/14 at 100.00
N/R
   
720,225
 
 
1,785
 
Hawthorne Community Redevelopment Agency, California, Project Area 2 Tax Allocation Bonds, Series 2006, 5.250%, 9/01/36 – SYNCORA GTY Insured
9/16 at 100.00
A–
   
1,621,333
 
 
1,800
 
Hesperia Unified School District, San Bernardino County, California, Certificates of Participation, Capital Improvement, Series 2007, 5.000%, 2/01/41 – AMBAC Insured
2/17 at 100.00
A–
   
1,574,748
 
     
Irvine, California, Unified School District, Community Facilities District Special Tax Bonds, Series 2006A:
           
 
205
 
5.000%, 9/01/26
9/16 at 100.00
N/R
   
194,623
 
 
470
 
5.125%, 9/01/36
9/16 at 100.00
N/R
   
422,126
 
 
2,000
 
Lake Elsinore Public Finance Authority, California, Local Agency Revenue Refunding Bonds, Series 2003H, 6.000%, 10/01/20
10/13 at 102.00
N/R
   
2,061,840
 
 
415
 
Lammersville School District, San Joaquin County, California, Community Facilities District 2002, Mountain House Special Tax Bonds, Series 2006, 5.125%, 9/01/35
9/16 at 100.00
N/R
   
350,555
 
 
1,265
 
Lee Lake Water District, Riverside County, California, Special Tax Bonds, Community Facilities District 1 of Sycamore Creek, Series 2003, 6.500%, 9/01/24
9/13 at 102.00
N/R
   
1,309,414
 
 
800
 
Los Angeles Community Redevelopment Agency, California, Lease Revenue Bonds, Manchester Social Services Project, Series 2005, 5.000%, 9/01/37 – AMBAC Insured
9/15 at 100.00
A1
   
721,544
 
 
750
 
Lynwood Redevelopment Agency, California, Project A Revenue Bonds, Subordinate Lien Series 2011A, 7.000%, 9/01/31
9/21 at 100.00
A–
   
801,720
 
 
485
 
North Natomas Community Facilities District 4, Sacramento, California, Special Tax Bonds, Series 2006D, 5.000%, 9/01/33
9/14 at 102.00
N/R
   
411,508
 
 
175
 
Novato Redevelopment Agency, California, Tax Allocation Bonds, Hamilton Field Redevelopment Project, Series 2011, 6.750%, 9/01/40
9/21 at 100.00
A–
   
182,625
 
 
2,000
 
Orange County, California, Special Tax Bonds, Community Facilities District 02-1 of Ladera Ranch, Series 2003A, 5.550%, 8/15/33
8/12 at 100.00
N/R
   
1,963,620
 
 
550
 
Rancho Santa Fe CSD Financing Authority, California, Revenue Bonds, Superior Lien Series 2011A, 5.750%, 9/01/30
9/21 at 100.00
BBB+
   
557,937
 
 
385
 
Rialto Redevelopment Agency, California, Tax Allocation Bonds, Merged Project Area, Series 2005A, 5.000%, 9/01/35 – SYNCORA GTY Insured
9/15 at 100.00
A–
   
337,691
 
 
100
 
Riverside County Redevelopment Agency, California, Tax Allocation Revenue Bonds, Jurupa Valley Project Area, Series 2011-B, 6.500%, 10/01/25
10/21 at 100.00
A–
   
103,735
 
 
475
 
Roseville, California, Certificates of Participation, Public Facilities, Series 2003A, 5.000%, 8/01/25 – AMBAC Insured
8/13 at 100.00
AA–
   
479,209
 
 
700
 
Sacramento, California, Special Tax Bonds, North Natomas Community Facilities District 4, Series 2003C, 6.000%, 9/01/33
9/14 at 100.00
N/R
   
684,131
 
     
San Buenaventura Redevelopment Agency, California, Merged Project Areas Tax Allocation Bonds, Series 2008:
           
 
1,000
 
7.750%, 8/01/28
8/16 at 102.00
A
   
1,101,020
 
 
1,325
 
8.000%, 8/01/38
8/16 at 102.00
A
   
1,466,258
 
 
80
 
San Francisco Redevelopment Finance Authority, California, Tax Allocation Revenue Bonds, Mission Bay North Redevelopment Project, Series 2011C, 6.750%, 8/01/41
2/21 at 100.00
A–
   
84,818
 
 
46
 
Nuveen Investments

 
 

 
 
 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
Tax Obligation/Limited (continued)
           
     
San Francisco Redevelopment Financing Authority, California, Tax Allocation Revenue Bonds, Mission Bay South Redevelopment Project, Series 2011D:
           
$
85
 
7.000%, 8/01/33
2/21 at 100.00
BBB
 
$
89,480
 
 
105
 
7.000%, 8/01/41
2/21 at 100.00
BBB
   
110,153
 
 
1,530
 
San Marcos Public Facilities Authority, California, Tax Allocation Bonds, Project Areas 2 and 3, Series 2005C, 5.000%, 8/01/35 – AMBAC Insured
8/15 at 100.00
A–
   
1,342,208
 
 
140
 
Signal Hill Redevelopment Agency, California, Project 1 Tax Allocation Bonds, Series 2011, 7.000%, 10/01/26
4/21 at 100.00
N/R
   
140,861
 
 
415
 
West Patterson Financing Authority, California, Special Tax Bonds, Community Facilities District 01-1, Refunding Series 2009A, 8.625%, 9/01/39
9/14 at 105.00
N/R
   
442,813
 
 
1,930
 
West Patterson Financing Authority, California, Special Tax Bonds, Community Facilities District 01-1, Series 2003B, 6.750%, 9/01/30
9/13 at 103.00
N/R
   
1,829,389
 
 
500
 
West Patterson Financing Authority, California, Special Tax Bonds, Community Facilities District 01-1, Series 2004B, 6.000%, 9/01/39
9/13 at 102.00
N/R
   
411,730
 
 
850
 
West Patterson Financing Authority, California, Special Tax Bonds, Community Facilities District 2001-1, Series 2004A, 6.125%, 9/01/39
9/13 at 103.00
N/R
   
712,275
 
 
3,715
 
Western Placer Unified School District, Placer County, California, Certificates of Participation, Series 2008, 5.000%, 8/01/47 – AGC Insured
8/18 at 100.00
AA+
   
3,513,944
 
 
240
 
Yorba Linda Redevelopment Agency, Orange County, California, Tax Allocation Revenue Bonds, Yorba Linda Redevelopment Project, Subordinate Lien Series 2011A, 6.500%, 9/01/32
9/21 at 100.00
A–
   
250,210
 
 
37,505
 
Total Tax Obligation/Limited
       
36,153,701
 
     
Transportation – 11.8% (8.0% of Total Investments)
           
 
3,000
 
Bay Area Governments Association, California, BART SFO Extension, Airport Premium Fare Revenue Bonds, Series 2002A, 5.000%, 8/01/32 – AMBAC Insured
8/12 at 100.00
N/R
   
2,568,570
 
 
1,930
 
Bay Area Toll Authority, California, Revenue Bonds, San Francisco Bay Area Toll Bridge, Series 2006F, 5.000%, 4/01/31 (UB)
4/16 at 100.00
AA
   
1,994,925
 
 
1,430
 
Bay Area Toll Authority, California, Revenue Bonds, San Francisco Bay Area Toll Bridge, Series 2008, Trust 3211, 13.398%, 10/01/32 (IF)
4/18 at 100.00
AA
   
1,704,002
 
 
7,000
 
Foothill/Eastern Transportation Corridor Agency, California, Toll Road Revenue Refunding Bonds, Series 1999, 5.875%, 1/15/27
1/14 at 101.00
BBB–
   
6,891,010
 
 
5,585
 
Port of Oakland, California, Revenue Bonds, Series 2002N, 5.000%, 11/01/16 – NPFG Insured (Alternative Minimum Tax)
11/12 at 100.00
A
   
5,744,061
 
     
San Francisco Airports Commission, California, Revenue Bonds, San Francisco International Airport, Second Series 2003, Issue 29A:
           
 
2,430
 
5.250%, 5/01/18 – FGIC Insured (Alternative Minimum Tax)
5/13 at 100.00
A+
   
2,508,805
 
 
2,555
 
5.250%, 5/01/19 – FGIC Insured (Alternative Minimum Tax)
5/13 at 100.00
A+
   
2,624,470
 
 
1,000
 
San Francisco Airports Commission, California, Revenue Bonds, San Francisco International Airport, Second Series 2003, Issue 29B, 5.125%, 5/01/17 – FGIC Insured
5/13 at 100.00
A+
   
1,052,110
 
 
24,930
 
Total Transportation
       
25,087,953
 
     
U.S. Guaranteed – 20.3% (13.8% of Total Investments) (7)
           
 
6,000
 
California Department of Water Resources, Power Supply Revenue Bonds, Series 2002A, 5.125%,5/01/18 (Pre-refunded 5/01/12)
5/12 at 101.00
Aaa
   
6,257,280
 
 
450
 
California Statewide Community Development Authority, Revenue Bonds, Thomas Jefferson School of Law, Series 2005A, 4.875%, 10/01/31 (Pre-refunded 10/01/15)
10/15 at 100.00
N/R (7)
   
504,234
 
 
860
 
California, Economic Recovery Revenue Bonds, Series 2004A, 5.000%, 7/01/15 (Pre-refunded 7/01/14)
7/14 at 100.00
Aaa
   
975,911
 
 
4,000
 
Daly City Housing Development Finance Agency, California, Mobile Home Park Revenue Bonds, Franciscan Mobile Home Park Project, Series 2002A, 5.850%, 12/15/32 (Pre-refunded 12/15/13)
12/13 at 102.00
N/R (7)
   
4,560,720
 
 
2,005
 
Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed Bonds, Series 2003A-1, 6.250%, 6/01/33 (Pre-refunded 6/01/13)
6/13 at 100.00
Aaa
   
2,171,335
 
 
Nuveen Investments
 
47

 
 

 
 
   
Nuveen California Dividend Advantage Municipal Fund 2 (continued)
NVX
 
Portfolio of Investments
     August 31, 2011 (Unaudited)
 
 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
U.S. Guaranteed (7) (continued)
           
$
1,170
 
Lincoln, California, Special Tax Bonds, Lincoln Crossing Community Facilities District 03-1, Series 2003A, 6.500%, 9/01/25 (Pre-refunded 9/01/13)
9/13 at 102.00
N/R (7)
 
$
1,327,307
 
 
885
 
Lincoln, California, Special Tax Bonds, Lincoln Crossing Community Facilities District 03-1, Series 2004, 6.000%, 9/01/34 (Pre-refunded 9/01/13)
9/13 at 102.00
N/R (7)
   
995,218
 
 
9,510
 
Los Angeles Unified School District, California, General Obligation Bonds, Series 2002E, 5.000%, 7/01/19 (Pre-refunded 7/01/12) – NPFG Insured
7/12 at 100.00
AA– (7)
   
9,893,538
 
 
2,000
 
Puerto Rico Public Finance Corporation, Commonwealth Appropriation Bonds, Series 2002E, 6.000%, 8/01/26 (ETM)
No Opt. Call
AA+ (7)
   
2,647,400
 
 
6,000
 
Riverside County Redevelopment Agency, California, Tax Allocation Bonds, Jurupa Valley Project Area, Series 2001, 5.250%, 10/01/35 (Pre-refunded 10/01/11) – AMBAC Insured
10/11 at 102.00
N/R (7)
   
6,145,020
 
 
2,000
 
San Francisco Airports Commission, California, Revenue Refunding Bonds, San Francisco International Airport, Second Series 2002, Issue 28A, 5.250%, 5/01/17 (Pre-refunded 5/01/12) – NPFG Insured (Alternative Minimum Tax)
5/12 at 100.00
A+ (7)
   
2,057,460
 
 
825
 
San Mateo Union High School District, San Mateo County, California, Certificates of Participation, Phase 1, Series 2007A, 5.000%, 12/15/30 (Pre-refunded
12/17 at 100.00
AA– (7)
   
1,019,354
 
         12/15/17) – AMBAC Insured            
 
2,800
 
Tobacco Securitization Authority of Southern California, Tobacco Settlement Asset-Backed Bonds, San Diego County Tobacco Asset Securitization Corporation, Senior Series 2001A, 5.500%, 6/01/36 (Pre-refunded 6/01/12)
6/12 at 100.00
Aaa
   
2,911,272
 
 
1,500
 
Whittier, California, Health Facility Revenue Bonds, Presbyterian Intercommunity Hospital, Series 2002, 5.600%, 6/01/22 (Pre-refunded 6/01/12)
6/12 at 101.00
N/R (7)
   
1,575,705
 
 
40,005
 
Total U.S. Guaranteed
       
43,041,754
 
     
Utilities – 8.6% (5.9% of Total Investments)
           
 
5,000
 
Anaheim Public Finance Authority, California, Second Lien Electric Distribution Revenue Bonds, Series 2004, 5.250%, 10/01/21 – NPFG Insured
10/14 at 100.00
A+
   
5,214,400
 
 
2,355
 
Long Beach Bond Finance Authority, California, Natural Gas Purchase Revenue Bonds, Series 2007A, 5.000%, 11/15/35
No Opt. Call
A
   
2,046,165
 
 
1,000
 
Los Angeles Department of Water and Power, California, Power System Revenue Bonds, Series 2003A-2, 5.000%, 7/01/23 – NPFG Insured
7/13 at 100.00
AA–
   
1,060,510
 
 
500
 
Los Angeles Department of Water and Power, California, Power System Revenue Bonds, Series 2005A-1, 5.000%, 7/01/31 – AGM Insured (UB)
7/15 at 100.00
AA+
   
514,265
 
     
Merced Irrigation District, California, Electric System Revenue Bonds, Series 2005:
           
 
790
 
5.125%, 9/01/31 – SYNCORA GTY Insured
9/15 at 100.00
N/R
   
713,512
 
 
1,500
 
5.250%, 9/01/36 – SYNCORA GTY Insured
9/15 at 100.00
N/R
   
1,327,035
 
 
2,000
 
Santa Clara, California, Subordinate Electric Revenue Bonds, Series 2003A, 5.250%, 7/01/20 – NPFG Insured
7/13 at 100.00
A1
   
2,117,500
 
 
1,500
 
Southern California Public Power Authority, California, Milford Wind Corridor Phase I Revenue Bonds, Series 2010-1, 5.000%, 7/01/28
No Opt. Call
AA–
   
1,596,030
 
 
4,000
 
Southern California Public Power Authority, Natural Gas Project 1 Revenue Bonds, Series 2007A, 5.000%, 11/01/33
No Opt. Call
Baa1
   
3,727,080
 
 
18,645
 
Total Utilities
       
18,316,497
 
     
Water and Sewer – 11.0% (7.5% of Total Investments)
           
 
1,400
 
Castaic Lake Water Agency, California, Certificates of Participation, Series 2006C, 5.000%, 8/01/36 – NPFG Insured
8/16 at 100.00
AA–
   
1,402,660
 
 
545
 
Healdsburg Public Financing Authority, California, Wastewater Revenue Bonds, Series 2006, 5.000%, 4/01/36 – NPFG Insured
4/16 at 100.00
AA–
   
549,970
 
 
1,160
 
Metropolitan Water District of Southern California, Waterworks Revenue Bonds, Tender Option Bond Trust 09-8B, 17.115%, 7/01/35 (IF) (4)
7/19 at 100.00
AAA
   
1,461,136
 
 
1,500
 
Orange County Water District, California, Revenue Certificates of Participation, Tender Option Bond Trust 11782-1, 17.486%, 2/15/35 (IF)
8/20 at 100.00
AAA
   
1,793,400
 
 
750
 
Sacramento County Sanitation District Financing Authority, California, Revenue Bonds, Series 2006, 5.000%, 12/01/31 – FGIC Insured
6/16 at 100.00
AA
   
780,300
 
 
48
 
Nuveen Investments

 
 

 
 
 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
Water and Sewer (continued)
           
$
1,700
 
San Buenaventura, California, Wastewater Revenue Certificates of Participation, Series 2004, 5.000%, 3/01/24 – NPFG Insured
3/14 at 100.00
AA
 
$
1,762,390
 
 
4,785
 
San Diego Public Facilities Financing Authority, California, Subordinate Lien Water Revenue Bonds, Series 2002, 5.000%, 8/01/21 – NPFG Insured
8/12 at 100.00
Aa3
   
4,948,309
 
 
10,000
 
San Francisco City and County Public Utilities Commission, California, Clean Water Revenue Refunding Bonds, Series 2003A, 5.250%, 10/01/20 – NPFG Insured
4/13 at 100.00
AA–
   
10,571,497
 
 
21,840
 
Total Water and Sewer
       
23,269,662
 
$
337,335
 
Total Investments (cost $311,810,849) – 147.0%
       
312,133,175
 
     
Floating Rate Obligations – (5.4)%
       
(11,390,000
     
MuniFund Term Preferred Shares, at Liquidation Value – (46.1)% (8)
       
(97,846,300
     
Other Assets Less Liabilities – 4.5%
       
9,478,476
 
     
Net Assets Applicable to Common Shares – 100%
     
$
212,375,351
 
 
(1)
 
All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted.
(2)
 
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. Certain mortgage-backed securities may be subject to periodic principal paydowns.
(3)
 
Ratings: Using the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investor Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies.
(4)
 
Investment, or portion of investment, has been pledged to collaterize the net payment obligations for investments in inverse floating rate transactions.
(5)
 
At or subsequent to the end of the reporting period, this security is non-income producing. Non-income producing security, in the case of a bond, generally denotes that the issuer has (1) defaulted on the payment of principal or interest, (2) is under the protection of the Federal Bankruptcy Court or (3) the Fund’s Adviser has concluded that the issue is not likely to meet its future interest payment obligations and has directed the Fund’s custodian to cease accruing additional income on the Fund’s records.
(6)
 
For fair value measurement disclosure purposes, investment categorized as Level 3. See Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies, Investment Valuation for more information.
(7)
 
Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities, which ensure the timely payment of principal and interest. Bonds backed by U.S. Government or agency securities are given an implied rating equal to the rating of such securities.
(8)
 
MuniFund Term Preferred Shares, at Liquidation Value as a percentage of Total Investments is 31.3%.
N/R
 
Not rated.
(ETM)
 
Escrowed to maturity.
(IF)
 
Inverse floating rate investment.
(UB)
 
Underlying bond of an inverse floating rate trust reflected as a financing transaction. See Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies, Inverse Floating Rate Securities for more information.
 
See accompanying notes to financial statements.
 
Nuveen Investments
 
49

 
 

 
 
   
Nuveen California Dividend Advantage Municipal Fund 3
NZH
 
Portfolio of Investments
   
August 31, 2011 (Unaudited)
 
 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
Consumer Staples – 7.8% (5.3% of Total Investments)
           
$
870
 
California County Tobacco Securitization Agency, Tobacco Settlement Asset-Backed Bonds, Sonoma County Tobacco Securitization Corporation, Series 2005, 4.250%, 6/01/21
6/15 at 100.00
BBB
 
$
810,257
 
 
7,500
 
Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed Bonds, Series 2007A-1, 5.750%, 6/01/47
6/17 at 100.00
Baa3
   
5,314,200
 
 
29,660
 
Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed Bonds, Series 2007A-2, 0.000%, 6/01/37
6/22 at 100.00
BB+
   
18,389,793
 
 
38,030
 
Total Consumer Staples
       
24,514,250
 
     
Education and Civic Organizations – 6.4% (4.4% of Total Investments)
           
 
290
 
California Educational Facilities Authority, Revenue Bonds, University of Redlands, Series 2005A, 5.000%, 10/01/35
10/15 at 100.00
A3
   
272,600
 
 
2,160
 
California Educational Facilities Authority, Revenue Bonds, University of San Francisco, Series 2011, 6.125%, 10/01/36
10/21 at 100.00
A3
   
2,370,254
 
     
California Educational Facilities Authority, Revenue Bonds, University of the Pacific, Series 2006:
           
 
200
 
5.000%, 11/01/21
11/15 at 100.00
A2
   
212,150
 
 
270
 
5.000%, 11/01/25
11/15 at 100.00
A2
   
278,683
 
 
1,000
 
5.000%, 11/01/30
11/15 at 100.00
A2
   
1,011,920
 
 
1,500
 
California Educational Facilities Authority, Student Loan Revenue Bonds, Cal Loan Program, Series 2001A, 5.400%, 3/01/21 – NPFG Insured (Alternative Minimum Tax)
3/12 at 100.00
Baa1
   
1,500,975
 
 
6,000
 
California State University, Systemwide Revenue Bonds, Series 2005C, 5.000%, 11/01/27 – NPFG Insured
11/15 at 100.00
Aa2
   
6,264,180
 
 
1,300
 
California Statewide Communities Development Authority, School Facility Revenue Bonds, Alliance College-Ready Public Schools, Series 2011A, 7.000%, 7/01/46
7/21 at 100.00
N/R
   
1,261,949
 
 
610
 
California Statewide Community Development Authority, Revenue Bonds, Notre Dame de Namur University, Series 2003, 6.500%, 10/01/23
10/13 at 100.00
N/R
   
588,235
 
 
4,000
 
University of California, General Revenue Bonds, Series 2003A, 5.000%, 5/15/23 – AMBAC Insured (UB)
5/13 at 100.00
Aa1
   
4,242,120
 
 
2,000
 
University of California, Limited Project Revenue Bonds, Series 2007D, 5.000%, 5/15/41 – FGIC Insured
5/16 at 101.00
Aa2
   
2,028,080
 
 
19,330
 
Total Education and Civic Organizations
       
20,031,146
 
     
Health Care – 32.2% (21.9% 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+
   
4,029,520
 
 
2,000
 
6.125%, 4/01/32
4/12 at 100.00
BBB+
   
2,003,560
 
 
670
 
California Health Facilities Financing Authority, Revenue Bonds, Kaiser Permanante System, Series 2006, 5.000%, 4/01/37
4/16 at 100.00
A+
   
641,994
 
 
3,530
 
California Health Facilities Financing Authority, Revenue Bonds, Sutter Health, Series 2011B, 6.000%, 8/15/42
8/20 at 100.00
AA–
   
3,811,341
 
 
3,735
 
California Health Facilities Financing Authority, Revenue Bonds, Sutter Health, Tender Option Bonds Trust 3765, 18.618%, 5/15/39 (IF) (4)
11/16 at 100.00
AA–
   
3,516,839
 
 
2,520
 
California Statewide Communities Development Authority, Revenue Bonds, Adventist Health System West, Series 2005A, 5.000%, 3/01/35
3/15 at 100.00
A
   
2,399,569
 
 
1,650
 
California Statewide Communities Development Authority, Revenue Bonds, Adventist Health System West, Series 2007B, 5.000%, 3/01/37 – AGC Insured
3/18 at 100.00
AA+
   
1,632,411
 
 
8,875
 
California Statewide Communities Development Authority, Revenue Bonds, Sutter Health, Series 2011A, 6.000%, 8/15/42
8/20 at 100.00
AA–
   
9,582,338
 
 
50
 
Nuveen Investments

 
 

 
 
 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
Health Care (continued)
           
$
1,594
 
California Statewide Communities Development Authority, Revenue Bonds, Saint Joseph Health System, Trust 2554, 18.324%, 7/01/47 – AGM Insured (IF)
7/18 at 100.00
AA+
 
$
1,628,621
 
     
California Statewide Communities Development Authority, Revenue Bonds, ValleyCare Health System, Series 2007A:
           
 
705
 
4.800%, 7/15/17
No Opt. Call
N/R
   
697,506
 
 
3,435
 
5.125%, 7/15/31
7/17 at 100.00
N/R
   
2,949,566
 
 
6,525
 
California Statewide Community Development Authority, Health Facility Revenue Refunding Bonds, Memorial Health Services, Series 2003A, 6.000%, 10/01/12
No Opt. Call
AA–
   
6,897,121
 
 
6,450
 
California Statewide Community Development Authority, Hospital Revenue Bonds, Monterey Peninsula Hospital, Series 2003B, 5.250%, 6/01/18 – AGM Insured
6/13 at 100.00
AA+
   
6,838,484
 
 
4,500
 
California Statewide Community Development Authority, Insured Health Facility Revenue Bonds, Catholic Healthcare West, Series 2008K, 5.500%, 7/01/41 – AGC Insured
7/17 at 100.00
AA+
   
4,576,995
 
 
7,665
 
California Statewide Community Development Authority, Insured Mortgage Hospital Revenue Bonds, Mission Community Hospital, Series 2001, 5.375%, 11/01/21
11/11 at 100.00
A–
   
7,680,253
 
 
2,000
 
California Statewide Community Development Authority, Revenue Bonds, Daughters of Charity Health System, Series 2005A, 5.250%, 7/01/35
7/15 at 100.00
BBB
   
1,638,560
 
 
4,300
 
California Statewide Community Development Authority, Revenue Bonds, Kaiser Permanante System, Series 2006, 5.000%, 3/01/41
3/16 at 100.00
A+
   
4,047,633
 
 
645
 
California Statewide Community Development Authority, Revenue Bonds, Kaiser Permanente System, Series 2001C, 5.250%, 8/01/31
8/16 at 100.00
A+
   
653,327
 
 
3,860
 
California Statewide Community Development Authority, Revenue Bonds, St. Joseph Health System, Series 2007A, 5.750%, 7/01/47 – FGIC Insured
7/18 at 100.00
AA–
   
3,891,305
 
 
1,765
 
California Statewide Community Development Authority, Revenue Bonds, St. Joseph Health System, Series 2009A, 5.750%, 7/01/39
7/19 at 100.00
AA–
   
1,818,656
 
 
5,600
 
California Statewide Community Development Authority, Revenue Bonds, Sutter Health, Tender Option Bond Trust 3102, 18.317%, 11/15/46 (IF)
11/16 at 100.00
AA–
   
5,272,792
 
 
2,950
 
Loma Linda, California, Hospital Revenue Bonds, Loma Linda University Medical Center, Series 2008A, 8.250%, 12/01/38
12/17 at 100.00
BBB
   
3,252,552
 
 
2,330
 
Newport Beach, California, Revenue Bonds, Hoag Memorial Hospital Presbyterian, Series 2011A, 6.000%, 12/01/40
12/21 at 100.00
AA
   
2,561,998
 
 
695
 
Oak Valley Hospital District, Stanislaus County, California, Revenue Bonds, Series 2010A, 6.500%, 11/01/29
11/20 at 100.00
BBB–
   
695,869
 
 
7,650
 
Palomar Pomerado Health Care District, California, Certificates of Participation, Series 2010, 6.000%, 11/01/41
11/20 at 100.00
Baa3
   
7,174,859
 
     
Rancho Mirage Joint Powers Financing Authority, California, Revenue Bonds, Eisenhower Medical Center, Series 2007A:
           
 
5,790
 
5.000%, 7/01/38
7/17 at 100.00
Baa1
   
5,091,842
 
 
2,500
 
5.000%, 7/01/47
7/17 at 100.00
Baa1
   
2,135,150
 
 
3,400
 
San Buenaventura, California, Revenue Bonds, Community Memorial Health System, Series 2011, 7.500%, 12/01/41
12/21 at 100.00
BB
   
3,375,282
 
 
101,339
 
Total Health Care
       
100,495,943
 
     
Housing/Multifamily – 4.2% (2.9% of Total Investments)
           
 
2,030
 
California Municipal Finance Authority, Mobile Home Park Revenue Bonds, Caritas Projects Series 2010A, 6.400%, 8/15/45
8/20 at 100.00
BBB–
   
1,990,801
 
 
325
 
Independent Cities Lease Finance Authority, California, Mobile Home Park Revenue Bonds, San Juan Mobile Estates, Series 2006B, 5.850%, 5/15/41
5/16 at 100.00
N/R
   
287,284
 
 
1,735
 
Rohnert Park Finance Authority, California, Senior Lien Revenue Bonds, Rancho Feliz Mobile Home Park, Series 2003A, 5.750%, 9/15/38
9/13 at 100.00
A+
   
1,737,585
 
 
1,125
 
Rohnert Park Finance Authority, California, Subordinate Lien Revenue Bonds, Rancho Feliz Mobile Home Park, Series 2003B, 6.625%, 9/15/38
9/13 at 100.00
N/R
   
1,127,858
 
 
Nuveen Investments
 
51

 
 

 
 
   
Nuveen California Dividend Advantage Municipal Fund 3 (continued)
NZH
 
Portfolio of Investments
     August 31, 2011 (Unaudited)
 
 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
Housing/Multifamily (continued)
           
$
3,610
 
San Bernardino County Housing Authority, California, GNMA Collateralized Multifamily Mortgage Revenue Bonds, Pacific Palms Mobile Home Park, Series 2001A, 6.700%, 12/20/41
11/11 at 105.00
Aaa
 
$
3,774,580
 
     
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)
2/12 at 102.00
AA+
   
1,263,800
 
 
2,880
 
5.450%, 2/20/43 (Alternative Minimum Tax)
2/12 at 102.00
AA+
   
2,892,442
 
 
12,955
 
Total Housing/Multifamily
       
13,074,350
 
     
Housing/Single Family – 3.0% (2.1% of Total Investments)
           
 
420
 
California Housing Finance Agency, Home Mortgage Revenue Bonds, Series 2006H, 5.750%, 8/01/30 – FGIC Insured (Alternative Minimum Tax)
2/16 at 100.00
Baa1
   
420,269
 
     
California Housing Finance Agency, Home Mortgage Revenue Bonds, Tender Option Bond Trust 3206:
           
 
10,180
 
8.116%, 02/01/24 (Alternative Minimum Tax) (IF)
2/16 at 100.00
BBB
   
6,681,745
 
 
3,805
 
8.488%, 02/01/24 (Alternative Minimum Tax) (IF)
2/17 at 100.00
BBB
   
2,407,233
 
 
14,405
 
Total Housing/Single Family
       
9,509,247
 
     
Industrials – 2.0% (1.4% of Total Investments)
           
 
5,000
 
California Pollution Control Financing Authority, Solid Waste Disposal Revenue Bonds, Waste Management Inc., Series 2005C, 5.125%, 11/01/23 (Alternative Minimum Tax)
11/15 at 101.00
BBB
   
5,101,550
 
 
5,205
 
California Statewide Communities Development Authority, Revenue Bonds, EnerTech Regional Biosolids Project, Series 2007A, 5.500%, 12/01/33 (Alternative Minimum Tax) (5)
No Opt. Call
CCC+
   
1,146,870
 
 
10,205
 
Total Industrials
       
6,248,420
 
     
Long-Term Care – 2.0% (1.4% of Total Investments)
           
 
2,450
 
California Health Facilities Financing Authority, Cal-Mortgage Insured Revenue Bonds, Northern California Retired Officers Community Corporation – Paradise Valley Estates, Series 2002, 5.125%, 1/01/22
1/13 at 100.00
A–
   
2,495,374
 
     
California Health Facilities Financing Authority, Insured Senior Living Revenue Bonds, Aldersly Project, Series 2002A:
           
 
1,500
 
5.125%, 3/01/22
3/12 at 101.00
A–
   
1,519,680
 
 
1,315
 
5.250%, 3/01/32
3/12 at 101.00
A–
   
1,304,401
 
 
1,000
 
California Municipal Finance Authority, Revenue Bonds, Harbor Regional Center Project, Series 2009, 8.000%, 11/01/29
11/19 at 100.00
Baa1
   
1,087,160
 
 
6,265
 
Total Long-Term Care
       
6,406,615
 
     
Tax Obligation/General – 11.2% (7.6% of Total Investments)
           
     
California State, General Obligation Bonds, Various Purpose Series 2009:
           
 
3,500
 
5.500%, 11/01/39
11/19 at 100.00
A1
   
3,640,875
 
 
3,040
 
6.000%, 11/01/39
11/19 at 100.00
A1
   
3,330,046
 
 
1,960
 
California State, General Obligation Bonds, Various Purpose Series 2010, 5.500%, 3/01/40
3/20 at 100.00
A1
   
2,041,654
 
 
15
 
California, General Obligation Veterans Welfare Bonds, Series 2001BZ, 5.350%, 12/01/21 – NPFG Insured (Alternative Minimum Tax)
12/11 at 100.00
AA
   
15,016
 
 
3,000
 
Contra Costa County Community College District, California, General Obligation Bonds, Series 2002, 5.000%, 8/01/23 – FGIC Insured
8/12 at 100.00
Aa1
   
3,095,850
 
 
2,260
 
Jurupa Unified School District, Riverside County, California, General Obligation Bonds, Series 2002, 5.125%, 8/01/22 – FGIC Insured
2/12 at 101.00
A+
   
2,285,538
 
 
18,500
 
Poway Unified School District, San Diego County, California, School Facilities Improvement District 2007-1 General Obligation Bonds, Series 2011B, 0.000%, 8/01/46
No Opt. Call
Aa2
   
1,942,500
 
 
870
 
Puerto Rico, General Obligation and Public Improvement Bonds, Series 2001, 5.000%, 7/01/24 – AGM Insured
11/11 at 100.00
AA+
   
870,348
 
 
575
 
Roseville Joint Union High School District, Placer County, California, General Obligation Bonds, Series 2006B, 5.000%, 8/01/27 – FGIC Insured
8/15 at 100.00
AA–
   
595,321
 
 
52
 
Nuveen Investments

 
 

 
 
 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
Tax Obligation/General (continued)
           
$
4,000
 
San Diego Unified School District, San Diego County, California, General Obligation Bonds, Election of 1998, Series 2002D, 5.250%, 7/01/21 – FGIC Insured
7/12 at 101.00
Aa1
 
$
4,189,480
 
 
2,715
 
San Jose-Evergreen Community College District, Santa Clara County, California, General Obligation Bonds, Series 2005A, 5.000%, 9/01/25 – NPFG Insured
9/15 at 100.00
Aa1
   
2,837,419
 
 
2,115
 
San Mateo Union High School District, San Mateo County, California, General Obligation Bonds, Election 2010 Series 2011A, 5.000%, 9/01/42
9/21 at 100.00
Aa1
   
2,210,683
 
     
Yosemite Community College District, California, General Obligation Bonds, Capital Appreciation, Election 2004, Series 2010D:
           
 
15,000
 
0.000%, 8/01/31
No Opt. Call
Aa2
   
4,244,550
 
 
12,520
 
0.000%, 8/01/42
No Opt. Call
Aa2
   
3,573,834
 
 
70,070
 
Total Tax Obligation/General
       
34,873,114
 
     
Tax Obligation/Limited – 42.9% (29.2% of Total Investments)
           
 
1,960
 
Borrego Water District, California, Community Facilities District 2007-1 Montesoro, Special Tax Bonds, Series 2007, 5.750%, 8/01/25 (5), (6)
8/17 at 102.00
N/R
   
725,200
 
 
7,135
 
Brentwood Infrastructure Financing Authority, Contra Costa County, California, Capital Improvement Revenue Bonds, Series 2001, 5.000%, 11/01/25 – AGM Insured
11/11 at 100.00
AA+
   
7,175,884
 
 
8,210
 
California State Public Works Board, Lease Revenue Bonds, Department of Corrections, Series 2003C, 5.500%, 6/01/16
12/13 at 100.00
A2
   
8,732,813
 
 
4,000
 
California State Public Works Board, Lease Revenue Bonds, Department of General Services, Series 2002B, 5.000%, 3/01/27 – AMBAC Insured
3/12 at 100.00
A2
   
4,004,200
 
 
4,510
 
California State Public Works Board, Lease Revenue Bonds, Department of Mental Health, Hospital Addition, Series 2001A, 5.000%, 12/01/26 – AMBAC Insured
12/11 at 102.00
A2
   
4,537,962
 
 
1,000
 
California State Public Works Board, Lease Revenue Bonds, Various Capital Projects, Series 2009G-1, 5.750%, 10/01/30
10/19 at 100.00
A2
   
1,050,340
 
 
2,260
 
California State Public Works Board, Lease Revenue Bonds, Various Capital Projects, Series 2010A-1, 5.750%, 3/01/30
3/20 at 100.00
A2
   
2,378,605
 
     
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
   
1,775,813
 
 
550
 
6.000%, 9/01/33
9/13 at 100.00
N/R
   
551,639
 
 
715
 
Capistrano Unified School District, Orange County, California, Special Tax Bonds, Community Facilities District, Series 2005, 5.000%, 9/01/24 – FGIC Insured
9/15 at 100.00
BBB
   
707,593
 
 
2,160
 
Chino Redevelopment Agency, California, Merged Chino Redevelopment Project Area Tax Allocation Bonds, Series 2006, 5.000%, 9/01/38 – AMBAC Insured
9/16 at 101.00
A–
   
1,870,387
 
 
725
 
National City Community Redevelopment Agency, California, Tax Allocation Revenue Bonds, National City Redevelopment Project Area, Series 2011, 6.500%, 8/01/24
8/21 at 100.00
A–
   
756,153
 
 
1,125
 
Fontana, California, Special Tax Bonds, Sierra Community Facilities District 22, Series 2004, 6.000%, 9/01/34
9/14 at 100.00
N/R
   
1,080,338
 
 
3,500
 
Fremont, California, Special Tax Bonds, Community Facilities District 1, Pacific Commons, Series 2005, 6.300%, 9/01/31
3/12 at 100.00
N/R
   
3,500,665
 
 
1,000
 
Fullerton Community Facilities District 1, California, Special Tax Bonds, Amerige Heights, Series 2002, 6.100%, 9/01/22
9/12 at 100.00
N/R
   
1,016,060
 
     
Irvine, California, Unified School District, Community Facilities District Special Tax Bonds, Series 2006A:
           
 
330
 
5.000%, 9/01/26
9/16 at 100.00
N/R
   
313,295
 
 
760
 
5.125%, 9/01/36
9/16 at 100.00
N/R
   
682,586
 
 
3,000
 
Lake Elsinore Public Finance Authority, California, Local Agency Revenue Refunding Bonds, Series 2003H, 6.000%, 10/01/20
10/13 at 102.00
N/R
   
3,092,760
 
 
Nuveen Investments
 
53

 
 

 
 
   
Nuveen California Dividend Advantage Municipal Fund 3 (continued)
NZH
 
Portfolio of Investments
     August 31, 2011 (Unaudited)
 
 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
Tax Obligation/Limited (continued)
           
$
685
 
Lammersville School District, San Joaquin County, California, Community Facilities District 2002, Mountain House Special Tax Bonds, Series 2006, 5.125%, 9/01/35
9/16 at 100.00
N/R
 
$
578,626
 
 
5,250
 
Lammersville School District, San Joaquin County, California, Special Tax Bonds, Community Facilities District of Mountain House, Series 2002, 6.300%, 9/01/24
9/12 at 101.00
N/R
   
5,307,750
 
 
2,000
 
Lee Lake Water District, Riverside County, California, Special Tax Bonds, Community Facilities District 1 of Sycamore Creek, Series 2003, 6.500%, 9/01/24
9/13 at 102.00
N/R
   
2,070,220
 
 
1,000
 
Lindsay Redevelopment Agency, California, Project 1 Tax Allocation Bonds, Series 2007, 5.000%, 8/01/37 – RAAI Insured
8/17 at 100.00
BBB+
   
851,290
 
 
5,425
 
Lodi, California, Certificates of Participation, Public Improvement Financing Project, Series 2002, 5.000%, 10/01/26 – NPFG Insured
10/12 at 100.00
A
   
5,469,702
 
 
1,310
 
Los Angeles Community Redevelopment Agency, California, Lease Revenue Bonds, Manchester Social Services Project, Series 2005, 5.000%, 9/01/37 – AMBAC Insured
9/15 at 100.00
A1
   
1,181,528
 
 
1,675
 
Moreno Valley Unified School District, Riverside County, California, Certificates of Participation, Series 2005, 5.000%, 3/01/26 – AGM Insured
3/14 at 100.00
AA+
   
1,711,482
 
     
North Natomas Community Facilities District 4, Sacramento, California, Special Tax Bonds, Series 2006D:
           
 
535
 
5.000%, 9/01/26
9/14 at 102.00
N/R
   
485,031
 
 
245
 
5.000%, 9/01/33
9/14 at 102.00
N/R
   
207,875
 
 
270
 
Novato Redevelopment Agency, California, Tax Allocation Bonds, Hamilton Field Redevelopment Project, Series 2011, 6.750%, 9/01/40
9/21 at 100.00
A–
   
281,764
 
 
3,000
 
Oakland Redevelopment Agency, California, Subordinate Lien Tax Allocation Bonds, Central District Redevelopment Project, Series 2003, 5.500%, 9/01/19 – FGIC Insured
3/13 at 100.00
A–
   
3,048,570
 
 
4,520
 
Ontario Redevelopment Financing Authority, California, Lease Revenue Bonds, Capital Projects, Series 2001, 5.000%, 8/01/24 – AMBAC Insured
8/12 at 100.50
AA–
   
4,567,867
 
 
2,000
 
Orange County, California, Special Tax Bonds, Community Facilities District 02-1 of Ladera Ranch, Series 2003A, 5.550%, 8/15/33
8/12 at 100.00
N/R
   
1,963,620
 
 
11,165
 
Palm Desert Financing Authority, California, Tax Allocation Revenue Refunding Bonds, Project Area 1, Series 2002, 5.100%, 4/01/30 – NPFG Insured
4/12 at 102.00
Baa1
   
9,921,889
 
 
3,250
 
Pomona Public Financing Authority, California, Revenue Refunding Bonds, Merged Redevelopment Projects, Series 2001AD, 5.000%, 2/01/27 – NPFG Insured
2/12 at 100.00
Baa1
   
2,910,830
 
 
1,000
 
Poway Unified School District, San Diego County, California, Special Tax Bonds, Community Facilities District 14 Del Sur, Series 2006, 5.125%, 9/01/26
9/16 at 100.00
N/R
   
914,250
 
 
6,000
 
Puerto Rico Highway and Transportation Authority, Highway Revenue Bonds, Series 2007N, 5.250%, 7/01/39 – FGIC Insured
No Opt. Call
Baa1
   
5,519,280
 
 
865
 
Rancho Santa Fe CSD Financing Authority, California, Revenue Bonds, Superior Lien Series 2011A, 5.750%, 9/01/30
9/21 at 100.00
BBB+
   
877,482
 
 
625
 
Rialto Redevelopment Agency, California, Tax Allocation Bonds, Merged Project Area, Series 2005A, 5.000%, 9/01/35 – SYNCORA GTY Insured
9/15 at 100.00
A–
   
548,200
 
 
155
 
Riverside County Redevelopment Agency, California, Tax Allocation Bonds, Jurupa Valley Project Area, Series 2011-B, 6.500%, 10/01/25
10/21 at 100.00
A–
   
160,789
 
 
3,375
 
Riverside County Redevelopment Agency, California, Interstate 215 Corridor Redevelopment Project Area Tax Allocation Bonds, Series 2010E, 6.500%, 10/01/40
10/20 at 100.00
A–
   
3,486,848
 
 
780
 
Roseville, California, Certificates of Participation, Public Facilities, Series 2003A, 5.000%, 8/01/25 – AMBAC Insured
8/13 at 100.00
AA–
   
786,911
 
 
1,145
 
Sacramento, California, Special Tax Bonds, North Natomas Community Facilities District 4, Series 2003C, 6.000%, 9/01/33
9/14 at 100.00
N/R
   
1,119,043
 
 
14,505
 
San Diego Redevelopment Agency, California, Subordinate Lien Tax Allocation Bonds, Centre City Project, Series 2001A, 5.000%, 9/01/26 – AGM Insured
9/12 at 100.50
AA+
   
14,669,632
 
 
54
 
Nuveen Investments

 
 

 
 
 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
Tax Obligation/Limited (continued)
           
$
2,300
 
San Francisco Bay Area Rapid Transit District, California, Sales Tax Revenue Bonds, Series 2001, 5.000%, 7/01/26 – AMBAC Insured
11/11 at 100.00
AA+
 
$
2,305,819
 
 
125
 
San Francisco Redevelopment Finance Authority, California, Tax Allocation Revenue Bonds, Mission Bay North Redevelopment Project, Series 2011C, 6.750%, 8/01/41
2/21 at 100.00
A–
   
132,529
 
     
San Francisco Redevelopment Financing Authority, California, Tax Allocation Revenue Bonds, Mission Bay South Redevelopment Project, Series 2011D:
           
 
125
 
7.000%, 8/01/33
2/21 at 100.00
BBB
   
131,589
 
 
160
 
7.000%, 8/01/41
2/21 at 100.00
BBB
   
167,853
 
 
215
 
Signal Hill Redevelopment Agency, California, Project 1 Tax Allocation Bonds, Series 2011, 7.000%, 10/01/26
4/21 at 100.00
N/R
   
216,322
 
 
8,710
 
South Orange County Public Financing Authority, California, Special Tax Revenue Bonds, Ladera Ranch, Series 2005A, 5.000%, 8/15/32 – AMBAC Insured
8/15 at 100.00
BBB+
   
8,141,150
 
 
1,165
 
Temecula Redevelopment Agency, California, Redevelopment Project 1 Tax Allocation Housing Bonds Series 2011A, 7.000%, 8/01/39
8/21 at 100.00
A
   
1,246,550
 
 
600
 
West Patterson Financing Authority, California, Special Tax Bonds, Community Facilities District 01-1, Refunding Series 2009A, 8.625%, 9/01/39
9/14 at 105.00
N/R
   
640,212
 
 
2,810
 
West Patterson Financing Authority, California, Special Tax Bonds, Community Facilities District 01-1, Series 2003B, 7.000%, 9/01/38
9/13 at 103.00
N/R
   
2,645,250
 
 
2,000
 
West Patterson Financing Authority, California, Special Tax Bonds, Community Facilities District 01-1, Series 2004B, 6.000%, 9/01/39
9/13 at 102.00
N/R
   
1,646,920
 
 
1,375
 
West Patterson Financing Authority, California, Special Tax Bonds, Community Facilities District 2001-1, Series 2004A, 6.125%, 9/01/39
9/13 at 103.00
N/R
   
1,152,209
 
 
370
 
Yorba Linda Redevelopment Agency, Orange County, California, Tax Allocation Revenue Bonds, Yorba Linda Redevelopment Project, Subordinate Lien Series 2011A, 6.500%, 9/01/32
9/21 at 100.00
A–
   
385,740
 
 
2,500
 
Yucaipa-Calimesa Joint Unified School District, San Bernardino County, California, General Obligation Refunding Bonds, Series 2001A, 5.000%, 10/01/26 – NPFG Insured
10/11 at 100.00
A2
   
2,500,175
 
 
137,925
 
Total Tax Obligation/Limited
       
133,905,090
 
     
Transportation – 7.4% (5.0% of Total Investments)
           
 
1,690
 
Bay Area Toll Authority, California, Revenue Bonds, San Francisco Bay Area Toll Bridge, Series 2006F, 5.000%, 4/01/31 (UB)
4/16 at 100.00
AA
   
1,746,852
 
 
11,750
 
Foothill/Eastern Transportation Corridor Agency, California, Toll Road Revenue Refunding Bonds, Series 1999, 5.875%, 1/15/28
1/14 at 101.00
BBB–
   
11,597,250
 
     
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
A+
   
4,324,172
 
 
5,140
 
5.125%, 5/01/19 – FGIC Insured
5/13 at 100.00
A+
   
5,355,212
 
 
22,690
 
Total Transportation
       
23,023,486
 
     
U.S. Guaranteed – 15.8% (10.8% of Total Investments) (7)
           
 
4,000
 
Beaumont Financing Authority, California, Local Agency Revenue Bonds, Series 2002A, 6.750%, 9/01/25 (Pre-refunded 9/01/12)
9/12 at 102.00
N/R (7)
   
4,333,680
 
 
7,510
 
California County Tobacco Securitization Agency, Tobacco Settlement Asset-Backed Bonds, Merced County Tobacco Funding Corporation, Series 2002A, 5.500%, 6/01/33 (Pre-refunded 6/01/12)
6/12 at 100.00
Baa3 (7)
   
7,747,091
 
     
California Department of Water Resources, Power Supply Revenue Bonds, Series 2002A:
           
 
3,500
 
5.375%, 5/01/17 (Pre-refunded 5/01/12) – SYNCORA GTY Insured
5/12 at 101.00
Aaa
   
3,655,925
 
 
8,000
 
5.125%, 5/01/18 (Pre-refunded 5/01/12)
5/12 at 101.00
Aaa
   
8,343,040
 
 
720
 
California Statewide Community Development Authority, Revenue Bonds, Thomas Jefferson School of Law, Series 2005A, 4.875%, 10/01/31 (Pre-refunded 10/01/15)
10/15 at 100.00
N/R (7)
   
806,774
 
 
Nuveen Investments
 
55

 
 

 
 
   
Nuveen California Dividend Advantage Municipal Fund 3 (continued)
NZH
 
Portfolio of Investments
     August 31, 2011 (Unaudited)
 
 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
U.S. Guaranteed (7) (continued)
           
$
2,000
 
Daly City Housing Development Finance Agency, California, Mobile Home Park Revenue Bonds, Franciscan Mobile Home Park Project, Series 2002A, 5.800%, 12/15/25 (Pre-refunded 12/15/13)
12/13 at 102.00
N/R (7)
 
$
2,278,080
 
 
3,815
 
Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed Bonds, Series 2003A-1, 6.250%, 6/01/33 (Pre-refunded 6/01/13)
6/13 at 100.00
Aaa
   
4,131,492
 
 
1,940
 
Lincoln, California, Special Tax Bonds, Lincoln Crossing Community Facilities District 03-1, Series 2003A, 6.500%, 9/01/25 (Pre-refunded 9/01/13)
9/13 at 102.00
N/R (7)
   
2,200,833
 
 
1,335
 
Lincoln, California, Special Tax Bonds, Lincoln Crossing Community Facilities District 03-1, Series 2004, 6.000%, 9/01/34 (Pre-refunded 9/01/13)
9/13 at 102.00
N/R (7)
   
1,501,261
 
 
5,500
 
Puerto Rico Highway and Transportation Authority, Highway Revenue Bonds, Series 2002D, 5.375%, 7/01/36 (Pre-refunded 7/01/12)
7/12 at 100.00
AA+ (7)
   
5,732,815
 
 
1,345
 
San Mateo Union High School District, San Mateo County, California, Certificates of Participation, Phase 1, Series 2007A, 5.000%, 12/15/30 (Pre-refunded
12/17 at 100.00
AA– (7)
   
1,661,855
 
         12/15/17) – AMBAC Insured            
 
4,200
 
Tobacco Securitization Authority of Southern California, Tobacco Settlement Asset-Backed Bonds, San Diego County Tobacco Asset Securitization Corporation, Senior Series 2001A, 5.500%, 6/01/36 (Pre-refunded 6/01/12)
6/12 at 100.00
Aaa
   
4,366,908
 
 
2,500
 
Whittier, California, Health Facility Revenue Bonds, Presbyterian Intercommunity Hospital, Series 2002, 5.600%, 6/01/22 (Pre-refunded 6/01/12)
6/12 at 101.00
N/R (7)
   
2,626,175
 
 
46,365
 
Total U.S. Guaranteed
       
49,385,929
 
     
Utilities – 4.3% (2.9% of Total Investments)
           
 
3,815
 
Long Beach Bond Finance Authority, California, Natural Gas Purchase Revenue Bonds, Series 2007A, 5.000%, 11/15/35
No Opt. Call
A
   
3,314,701
 
     
Merced Irrigation District, California, Electric System Revenue Bonds, Series 2005:
           
 
2,000
 
5.000%, 9/01/26 – SYNCORA GTY Insured
9/15 at 100.00
N/R
   
1,908,580
 
 
1,285
 
5.125%, 9/01/31 – SYNCORA GTY Insured
9/15 at 100.00
N/R
   
1,160,586
 
 
5,000
 
Merced Irrigation District, California, Revenue Certificates of Participation, Electric System Project, Series 2003, 5.700%, 9/01/36
9/13 at 102.00
Baa3
   
4,397,400
 
 
2,500
 
Salinas Valley Solid Waste Authority, California, Revenue Bonds, Series 2002, 5.125%,8/01/22 – AMBAC Insured (Alternative Minimum Tax)
8/12 at 100.00
A+
   
2,507,225
 
 
14,600
 
Total Utilities
       
13,288,492
 
     
Water and Sewer – 7.5% (5.1% of Total Investments)
           
 
1,070
 
Burbank, California, Wastewater System Revenue Bonds, Series 2004A, 5.000%, 6/01/22 – AMBAC Insured
6/14 at 100.00
AA+
   
1,118,193
 
 
3,000
 
East Valley Water District Financing Authority, California, Refunding Revenue Bonds, Series 2010, 5.000%, 10/01/40
10/20 at 100.00
AA–
   
3,035,910
 
 
1,125
 
Fortuna Public Finance Authority, California, Water Revenue Bonds, Series 2006, 5.000%, 10/01/36 – AGM Insured
10/16 at 100.00
AA+
   
1,133,730
 
 
890
 
Healdsburg Public Financing Authority, California, Wastewater Revenue Bonds, Series 2006, 5.000%, 4/01/36 – NPFG Insured
4/16 at 100.00
AA–
   
898,117
 
 
850
 
Marina Coast Water District, California, Enterprise Certificate of Participation, Series 2006, 5.000%, 6/01/31 – NPFG Insured
6/16 at 100.00
AA–
   
861,040
 
 
3,000
 
Pico Rivera Water Authority, California, Revenue Bonds, Series 2001A, 6.250%, 12/01/32
12/11 at 102.00
N/R
   
2,958,030
 
 
1,000
 
San Buenaventura, California, Wastewater Revenue Certificates of Participation, Series 2004, 5.000%, 3/01/24 – NPFG Insured
3/14 at 100.00
AA
   
1,036,700
 
 
56
 
Nuveen Investments

 
 

 
 
 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
Water and Sewer (continued)
           
     
San Diego Public Facilities Financing Authority, California, Subordinate Lien Water Revenue Bonds, Series 2002:
           
$
2,500
 
5.000%, 8/01/23 – NPFG Insured
8/12 at 100.00
Aa3
 
$
2,575,000
 
 
6,260
 
5.000%, 8/01/24 – NPFG Insured
8/12 at 100.00
Aa3
   
6,437,906
 
 
3,315
 
San Francisco City and County Public Utilities Commission, California, Clean Water Revenue Refunding Bonds, Series 2003A, 5.250%, 10/01/18 – NPFG Insured
4/13 at 100.00
AA–
   
3,517,875
 
 
23,010
 
Total Water and Sewer
       
23,572,501
 
$
517,189
 
Total Investments (cost $467,625,600) – 146.7%
       
458,328,583
 
     
Floating Rate Obligations – (1.2)%
       
(3,845,000
     
MuniFund Term Preferred Shares, at Liquidation Value – (51.1)% (8)
       
(159,544,500
     
Other Assets Less Liabilities – 5.6%
       
17,486,211
 
     
Net Assets Applicable to Common Shares – 100%
     
$
312,425,294
 
 
(1)
 
All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted.
(2)
 
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. Certain mortgage-backed securities may be subject to periodic principal paydowns.
(3)
 
Ratings: Using the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investor Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies.
(4)
 
Investment, or portion of investment, has been pledged to collaterize the net payment obligations for investments in inverse floating rate transactions.
(5)
 
At or subsequent to the end of the reporting period, this security is non-income producing. Non-income producing security, in the case of a bond, generally denotes that the issuer has (1) defaulted on the payment of principal or interest, (2) is under the protection of the Federal Bankruptcy Court or (3) the Fund’s Adviser has concluded that the issue is not likely to meet its future interest payment obligations and has directed the Fund’s custodian to cease accruing additional income on the Fund’s records.
(6)
 
For fair value measurement disclosure purposes, investment categorized as Level 3. See Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies, Investment Valuation for more information.
(7)
 
Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities, which ensure the timely payment of principal and interest. Bonds backed by U.S. Government or agency securities are given an implied rating equal to the rating of such securities.
(8)
 
MuniFund Term Preferred Shares, at Liquidation Value as a percentage of Total Investments is 34.8%.
N/R
 
Not rated.
(IF)
 
Inverse floating rate investment.
(UB)
 
Underlying bond of an inverse floating rate trust reflected as a financing transaction. See Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies, Inverse Floating Rate Securities for more information.
 
See accompanying notes to financial statements.
 
Nuveen Investments
 
57

 
 

 
 
 
 
Nuveen Insured California Dividend Advantage Municipal Fund
NKL
 
Portfolio of Investments
   
August 31, 2011 (Unaudited)
 
 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
Consumer Staples – 3.9% (2.6% of Total Investments)
           
$
14,155
 
Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed Bonds, Series 2007A-2, 0.000%, 6/01/37
6/22 at 100.00
BB+
 
$
8,776,383
 
     
Education and Civic Organizations – 4.8% (3.2% of Total Investments)
           
 
1,675
 
California Educational Facilities Authority, Revenue Bonds, University of San Diego, Series 2002A, 5.250%, 10/01/30
10/12 at 100.00
A2
   
1,693,107
 
 
9,000
 
California State University, Systemwide Revenue Bonds, Series 2002A, 5.125%, 11/01/26 – AMBAC Insured
11/12 at 100.00
Aa2
   
9,188,640
 
 
10,675
 
Total Education and Civic Organizations
       
10,881,747
 
     
Health Care – 7.8% (5.3% of Total Investments)
           
 
5,000
 
ABAG Finance Authority for Non-Profit Corporations, California, Cal-Mortgage Insured Revenue Bonds, Sansum-Santa Barbara Medical Foundation Clinic, Series 2002A, 5.600%, 4/01/26
4/12 at 100.00
A–
   
5,024,900
 
 
2,815
 
California Health Facilities Financing Authority, Revenue Bonds, Lucile Salter Packard Children’s Hospital, Series 2003C, 5.000%, 8/15/20 – AMBAC Insured
8/13 at 100.00
AA
   
2,927,656
 
 
1,748
 
California Statewide Communities Development Authority, Revenue Bonds, Saint Joseph Health System, Trust 2554, 18.324%, 7/01/47 – AGM Insured (IF)
7/18 at 100.00
AA+
   
1,786,015
 
 
5,000
 
California Statewide Community Development Authority, Revenue Bonds, Kaiser Permanante System, Series 2006, 5.000%, 3/01/41
3/16 at 100.00
A+
   
4,706,550
 
 
3,200
 
California Statewide Community Development Authority, Revenue Bonds, St. Joseph Health System, Series 2007A, 5.750%, 7/01/47 – FGIC Insured
7/18 at 100.00
AA–
   
3,225,952
 
 
17,763
 
Total Health Care
       
17,671,073
 
     
Housing/Multifamily – 1.3% (0.9% of Total Investments)
           
 
1,000
 
California Statewide Community Development Authority, Student Housing Revenue Bonds, EAH – Irvine East Campus Apartments, LLC Project, Series 2002A, 5.500%, 8/01/22 – ACA Insured
8/12 at 100.00
Baa1
   
1,004,110
 
 
1,905
 
Los Angeles, California, GNMA Mortgage-Backed Securities Program Multifamily Housing Revenue Bonds, Park Plaza West Senior Apartments, Series 2001B, 5.300%, 1/20/21 (Alternative Minimum Tax)
1/12 at 102.00
AA+
   
1,942,700
 
 
2,905
 
Total Housing/Multifamily
       
2,946,810
 
     
Housing/Single Family – 0.1% (0.1% of Total Investments)
           
 
270
 
California Housing Finance Agency, Home Mortgage Revenue Bonds, Series 2006H, 5.750%, 8/01/30 – FGIC Insured (Alternative Minimum Tax)
2/16 at 100.00
Baa1
   
270,173
 
     
Industrials – 1.2% (0.8% of Total Investments)
           
 
2,435
 
California Pollution Control Financing Authority, Solid Waste Disposal Revenue Bonds, Republic Services Inc., Series 2002C, 5.250%, 6/01/23 (Mandatory put 12/01/17) (Alternative Minimum Tax)
No Opt. Call
BBB
   
2,613,534
 
     
Long-Term Care – 1.4% (0.9% of Total Investments)
           
 
3,000
 
ABAG Finance Authority for Non-Profit Corporations, California, Insured Senior Living Revenue Bonds, Odd Fellows Home of California, Series 2003A, 5.200%, 11/15/22
11/12 at 100.00
A–
   
3,031,500
 
     
Tax Obligation/General – 36.7% (24.7% of Total Investments)
           
 
900
 
California State, General Obligation Bonds, Series 2003, 5.000%, 2/01/21
8/13 at 100.00
A1
   
958,581
 
 
8,250
 
California, General Obligation Refunding Bonds, Series 2002, 5.000%, 2/01/22 – NPFG Insured
2/12 at 100.00
A1
   
8,357,993
 
 
20,750
 
Coachella Valley Unified School District, Riverside County, California, General Obligation Bonds, Capital Appreciation, Election 2005 Series 2010C, 0.000%, 8/01/43 – AGM Insured
No Opt. Call
AA+
   
2,470,703
 
 
3,375
 
Coast Community College District, Orange County, California, General Obligation Bonds, Series 2006C, 0.000%, 8/01/31 – AGM Insured
8/18 at 100.00
AA+
   
3,087,011
 
 
10,000
 
East Side Union High School District, Santa Clara County, California, General Obligation Bonds, Series 2005, 0.000%, 8/01/28 – SYNCORA GTY Insured
8/13 at 47.75
A
   
3,285,000
 
 
230
 
El Monte Union High School District, Los Angeles County, California, General Obligation Bonds, Series 2003A, 5.000%, 6/01/28 – AGM Insured
6/13 at 100.00
AA+
   
233,312
 
 
58
 
Nuveen Investments

 
 

 
 
 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
Tax Obligation/General (continued)
           
$
2,730
 
Fontana Unified School District, San Bernardino County, California, General Obligation Bonds, Trust 2668, 9.359%, 2/01/16 – AGM Insured (IF)
No Opt. Call
AA+
 
$
3,086,047
 
 
10,000
 
Fremont Unified School District, Alameda County, California, General Obligation Bonds, Series 2002A, 5.000%, 8/01/25 – FGIC Insured
8/12 at 101.00
Aa2
   
10,414,400
 
 
1,000
 
Los Rios Community College District, Sacramento, El Dorado and Yolo Counties, California, General Obligation Bonds, Series 2006C, 5.000%, 8/01/25 – AGM Insured (UB)
8/14 at 100.00
AA+
   
1,105,530
 
 
1,500
 
Madera Unified School District, Madera County, California, General Obligation Bonds, Series 2002, 5.000%, 8/01/28 – AGM Insured
8/12 at 100.00
AA+
   
1,533,015
 
 
2,000
 
Murrieta Valley Unified School District, Riverside County, California, General Obligation Bonds, Series 2007, 4.500%, 9/01/30 – AGM Insured
9/17 at 100.00
AA+
   
1,993,680
 
 
2,500
 
Oakland Unified School District, Alameda County, California, General Obligation Bonds, Series 2002, 5.250%, 8/01/21 – FGIC Insured
8/12 at 100.00
A2
   
2,539,650
 
 
16,000
 
Poway Unified School District, San Diego County, California, School Facilities Improvement District 2007-1 General Obligation Bonds, Series 2011B, 0.000%, 8/01/46
No Opt. Call
Aa2
   
1,680,000
 
 
375
 
Roseville Joint Union High School District, Placer County, California, General Obligation Bonds, Series 2006B, 5.000%, 8/01/27 – FGIC Insured
8/15 at 100.00
AA–
   
388,253
 
 
1,500
 
San Juan Capistano, California, General Obligation Bonds, Open Space Program, Tender Option Bond Trust 3646, 17.740%, 8/01/17 (IF)
No Opt. Call
AAA
   
1,851,300
 
 
3,500
 
San Mateo County Community College District, California, General Obligation Bonds, Series 2002A, 5.000%, 9/01/26 – FGIC Insured
9/12 at 100.00
Aaa
   
3,613,960
 
     
San Ysidro School District, San Diego County, California, General Obligation Bonds, 1997 Election Series 2011F:
           
 
7,230
 
0.000%, 8/01/42 – AGM Insured
8/21 at 21.00
AA+
   
749,896
 
 
10,450
 
0.000%, 8/01/43 – AGM Insured
8/21 at 19.43
AA+
   
1,003,305
 
 
21,225
 
0.000%, 8/01/44 – AGM Insured
8/21 at 17.98
AA+
   
1,881,809
 
 
12,550
 
0.000%, 8/01/45 – AGM Insured
8/21 at 16.64
AA+
   
1,027,218
 
 
23,425
 
0.000%, 8/01/46 – AGM Insured
8/21 at 15.39
AA+
   
1,773,975
 
 
14,915
 
Southwestern Community College District, San Diego County, California, General Obligation Bonds, Election of 2008, Series 2011C, 0.000%, 8/01/41
No Opt. Call
Aa2
   
2,094,812
 
 
24,280
 
Stockton Unified School District, San Joaquin County, California, General Obligation Bonds, Election 2008 Series 2011D, 0.000%, 8/01/47 – AGC Insured
8/37 at 100.00
AA+
   
8,918,530
 
 
15,780
 
Sylvan Union School District, Stanislaus County, California, General Obligation Bonds, Election of 2006, Series 2010, 0.000%, 8/01/49 – AGM Insured
No Opt. Call
AA+
   
4,336,186
 
 
10,000
 
Vista Unified School District, San Diego County, California, General Obligation Bonds, Series 2002A, 5.000%, 8/01/23 – AGM Insured
8/12 at 100.00
AA+
   
10,297,200
 
 
3,905
 
West Kern Community College District, California, General Obligation Bonds, Election 2004, Series 2007C, 5.000%, 10/01/32 – SYNCORA GTY Insured
11/17 at 100.00
A+
   
3,982,553
 
 
228,370
 
Total Tax Obligation/General
       
82,663,919
 
     
Tax Obligation/Limited – 46.7% (31.5% of Total Investments)
           
 
1,450
 
Baldwin Park Public Financing Authority, California, Sales Tax and Tax Allocation Bonds, Puente Merced Redevelopment Project, Series 2003, 5.250%, 8/01/21
8/13 at 102.00
BBB
   
1,495,139
 
 
6,895
 
Brea and Olinda Unified School District, Orange County, California, Certificates of Participation Refunding, Series 2002A, 5.125%, 8/01/26 – AGM Insured
8/12 at 100.00
AA+
   
6,981,463
 
 
2,200
 
California Infrastructure Economic Development Bank, Los Angeles County, Revenue Bonds, Department of Public Social Services, Series 2003, 5.000%, 9/01/28 – AMBAC Insured
9/13 at 101.00
A+
   
2,216,434
 
 
3,100
 
California State Public Works Board, Lease Revenue Bonds, Department of Health Services, Richmond Lab, Series 2005B, 5.000%, 11/01/30 – SYNCORA GTY Insured
11/15 at 100.00
A2
   
3,090,328
 
 
465
 
Capistrano Unified School District, Orange County, California, Special Tax Bonds, Community Facilities District, Series 2005, 5.000%, 9/01/24 – FGIC Insured
9/15 at 100.00
BBB
   
460,183
 
 
1,400
 
Chino Redevelopment Agency, California, Merged Chino Redevelopment Project Area Tax Allocation Bonds, Series 2006, 5.000%, 9/01/38 – AMBAC Insured
9/16 at 101.00
A–
   
1,212,288
 
 
Nuveen Investments
 
59

 
 

 
 
   
Nuveen Insured California Dividend Advantage Municipal Fund (continued)
NKL   Portfolio of Investments
 
 
August 31, 2011 (Unaudited)
 
 
Principal
   
Optional Call
       
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
 
Value
 
     
Tax Obligation/Limited (continued)
         
$
7,035
 
Corona-Norco Unified School District, Riverside County, California, Special Tax Bonds, Community Facilities District 98-1, Series 2003, 5.000%, 9/01/28 – NPFG Insured
9/13 at 100.00
Baa1
$
6,396,363
 
 
3,145
 
Culver City Redevelopment Agency, California, Tax Allocation Revenue Bonds, Redevelopment Project, Series 2002A, 5.125%, 11/01/25 – NPFG Insured
5/12 at 100.00
Baa1
 
2,927,177
 
 
7,595
 
El Monte, California, Senior Lien Certificates of Participation, Department of Public Services Facility Phase II, Series 2001, 5.000%, 1/01/21 – AMBAC Insured
1/12 at 100.00
A2
 
7,601,532
 
 
4,000
 
Folsom Public Financing Authority, California, Special Tax Revenue Bonds, Series 2004A, 5.000%, 9/01/21 – AMBAC Insured
9/12 at 102.00
N/R
 
3,835,840
 
 
7,780
 
Golden State Tobacco Securitization Corporation, California, Enhanced Tobacco Settlement Asset-Backed Revenue Bonds, Series 2005A, 5.000%, 6/01/45 – AMBAC Insured
6/15 at 100.00
A2
 
6,872,385
 
 
7,700
 
Golden State Tobacco Securitization Corporation, California, Enhanced Tobacco Settlement Asset-Backed Revenue Bonds, Tender Option Bonds Trust 4686, 8.953%, 6/01/45 – AGC Insured (IF) (4)
6/15 at 100.00
AA+
 
6,500,956
 
 
910
 
Hesperia Public Financing Authority, California, Redevelopment and Housing Projects Tax Allocation Bonds, Series 2007A, 5.000%, 9/01/37 – SYNCORA GTY Insured
9/17 at 100.00
Ba1
 
602,356
 
 
2,115
 
Inglewood Redevelopment Agency, California, Tax Allocation Refunding Bonds, Merged Area Redevelopment Project, Series 1998A, 5.250%, 5/01/23 – AMBAC Insured
No Opt. Call
N/R
 
2,109,374
 
 
3,500
 
La Quinta Redevelopment Agency, California, Tax Allocation Bonds, Redevelopment Project Area 1, Series 2001, 5.100%, 9/01/31 – AMBAC Insured
3/12 at 102.00
A+
 
3,311,175
 
 
3,400
 
La Quinta Redevelopment Agency, California, Tax Allocation Bonds, Redevelopment Project Area 1, Series 2002, 5.000%, 9/01/22 – AMBAC Insured
9/12 at 102.00
A+
 
3,487,482
 
 
845
 
Los Angeles Community Redevelopment Agency, California, Lease Revenue Bonds, Manchester Social Services Project, Series 2005, 5.000%, 9/01/37 – AMBAC Insured
9/15 at 100.00
A1
 
762,131
 
 
1,460
 
Los Angeles, California, Certificates of Participation, Municipal Improvement Corporation, Series 2003AW, 5.000%, 6/01/33 – AMBAC Insured
6/13 at 100.00
A+
 
1,468,994
 
 
7,000
 
Los Angeles, California, Certificates of Participation, Series 2002, 5.200%,
4/12 at 100.00
A+
 
7,036,680
 
         4/01/27 – AMBAC Insured          
 
8,470
 
Ontario Redevelopment Financing Authority, California, Lease Revenue Bonds, Capital Projects, Series 2001, 5.200%, 8/01/29 – AMBAC Insured
8/12 at 100.50
AA–
 
8,532,509
 
 
5,000
 
Palm Desert Financing Authority, California, Tax Allocation Revenue Refunding Bonds, Project Area 1, Series 2002, 5.000%, 4/01/25 – NPFG Insured
4/12 at 102.00
Baa1
 
4,649,550
 
 
405
 
Rialto Redevelopment Agency, California, Tax Allocation Bonds, Merged Project Area, Series 2005A, 5.000%, 9/01/35 – SYNCORA GTY Insured
9/15 at 100.00
A–
 
355,234
 
 
3,000
 
Riverside County Public Financing Authority, California, Tax Allocation Bonds, Multiple Projects, Series 2005A, 5.000%, 10/01/35 – SYNCORA GTY Insured
10/15 at 100.00
BBB
 
2,493,930
 
 
4,475
 
Riverside County, California, Asset Leasing Corporate Leasehold Revenue Bonds, Riverside County Hospital Project, Series 1997B, 5.000%, 6/01/19 – NPFG Insured
6/12 at 101.00
Baa1
 
4,586,114
 
 
2,500
 
Roseville Financing Authority, California, Special Tax Revenue Bonds, Series 2007A, 5.000%, 9/01/33 – AMBAC Insured
9/17 at 100.00
N/R
 
2,049,175
 
 
505
 
Roseville, California, Certificates of Participation, Public Facilities, Series 2003A, 5.000%, 8/01/25 – AMBAC Insured
8/13 at 100.00
AA–
 
509,474
 
 
3,175
 
San Buenaventura, California, Certificates of Participation, Series 2001C, 5.250%, 2/01/31 – AMBAC Insured
2/13 at 100.00
N/R
 
3,144,361
 
 
3,730
 
San Diego Redevelopment Agency, California, Subordinate Lien Tax Increment and Parking Revenue Bonds, Centre City Project, Series 2003B, 5.250%, 9/01/26
11/11 at 100.00
Baa2
 
3,729,851
 
 
4,000
 
San Jose Financing Authority, California, Lease Revenue Refunding Bonds, Convention Center Project, Series 2001F, 5.000%, 9/01/19 – NPFG Insured
11/11 at 100.00
AA+
 
4,013,200
 
 
1,000
 
San Jose Redevelopment Agency, California, Tax Allocation Bonds, Merged Project Area, Series 2005A, 5.000%, 8/01/28 – NPFG Insured
8/15 at 100.00
BBB+
 
858,400
 
 
2,160
 
Temecula Redevelopment Agency, California, Tax Allocation Revenue Bonds, Redevelopment Project 1, Series 2002, 5.125%, 8/01/27 – NPFG Insured
11/11 at 100.00
A–
 
2,022,494
 
 
110,415
 
Total Tax Obligation/Limited
     
105,312,572
 
 
60
 
Nuveen Investments

 
 

 
 
 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
Transportation – 5.3% (3.5% of Total Investments)
           
$
7,500
 
Foothill/Eastern Transportation Corridor Agency, California, Toll Road Revenue Refunding Bonds, Series 1999, 5.875%, 1/15/29
1/14 at 101.00
BBB–
 
$
7,196,175
 
     
San Francisco Airports Commission, California, Revenue Bonds, San Francisco International Airport, Second Series 2003, Issue 29A:
           
 
2,185
 
5.250%, 5/01/16 – FGIC Insured (Alternative Minimum Tax)
5/13 at 100.00
A+
   
2,285,488
 
 
2,300
 
5.250%, 5/01/17 – FGIC Insured (Alternative Minimum Tax)
5/13 at 100.00
A+
   
2,389,286
 
 
11,985
 
Total Transportation
       
11,870,949
 
     
U.S. Guaranteed – 6.9% (4.6% of Total Investments) (5)
           
 
2,250
 
California Infrastructure Economic Development Bank, First Lien Revenue Bonds, San Francisco Bay Area Toll Bridge, Series 2003A, 5.000%, 7/01/36 (Pre-refunded 1/01/28) – AMBAC Insured
1/28 at 100.00
Aaa
   
2,829,285
 
 
4,500
 
Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed Revenue Bonds, Series 2003A-2, 7.900%, 6/01/42 (Pre-refunded 6/01/13)
6/13 at 100.00
Aaa
   
5,079,600
 
 
3,500
 
Los Angeles Unified School District, California, General Obligation Bonds, Series 2002E, 5.125%, 1/01/27 (Pre-refunded 7/01/12) – NPFG Insured
7/12 at 100.00
AA– (5)
   
3,644,795
 
 
3,380
 
Rancho Mirage Joint Powers Financing Authority, California, Revenue Bonds, Eisenhower Medical Center, Series 2004, 5.875%, 7/01/26 (Pre-refunded 7/01/14)
7/14 at 100.00
Baa1 (5)
   
3,896,160
 
 
13,630
 
Total U.S. Guaranteed
       
15,449,840
 
     
Utilities – 14.6% (9.9% of Total Investments)
           
 
9,000
 
Anaheim Public Finance Authority, California, Revenue Bonds, Electric System Distribution Facilities, Series 2002A, 5.000%, 10/01/27 – AGM Insured
10/12 at 100.00
AA+
   
9,275,490
 
 
10,000
 
California Pollution Control Financing Authority, Remarketed Revenue Bonds, Pacific Gas and Electric Company, Series 1996A, 5.350%, 12/01/16 – NPFG Insured (Alternative Minimum Tax)
9/11 at 102.00
A3
   
10,215,600
 
 
2,490
 
Long Beach Bond Finance Authority, California, Natural Gas Purchase Revenue Bonds, Series 2007A, 5.000%, 11/15/35
No Opt. Call
A
   
2,163,461
 
 
830
 
Merced Irrigation District, California, Electric System Revenue Bonds, Series 2005, 5.125%, 9/01/31 – SYNCORA GTY Insured
9/15 at 100.00
N/R
   
749,639
 
 
1,775
 
Northern California Power Agency, Revenue Refunding Bonds, Hydroelectric Project 1, Series 1998A, 5.200%, 7/01/32 – NPFG Insured
11/11 at 100.00
A
   
1,775,249
 
 
3,000
 
Sacramento Municipal Utility District, California, Electric Revenue Bonds, Series 2001N, 5.000%, 8/15/28 – NPFG Insured
2/12 at 100.00
A+
   
3,001,470
 
 
5,630
 
Southern California Public Power Authority, Subordinate Revenue Refunding Bonds, Transmission Project, Series 2002A, 4.750%, 7/01/19 – AGM Insured
7/12 at 100.00
AA+
   
5,799,463
 
 
32,725
 
Total Utilities
       
32,980,372
 
     
Water and Sewer – 17.8% (12.0% of Total Investments)
           
 
2,185
 
California Department of Water Resources, Water System Revenue Bonds, Central Valley Project, Series 2002X, 5.150%, 12/01/23 – FGIC Insured
12/12 at 100.00
AAA
   
2,287,411
 
 
750
 
Fortuna Public Finance Authority, California, Water Revenue Bonds, Series 2006, 5.000%, 10/01/36 – AGM Insured
10/16 at 100.00
AA+
   
755,820
 
 
570
 
Healdsburg Public Financing Authority, California, Wastewater Revenue Bonds, Series 2006, 5.000%, 4/01/36 – NPFG Insured
4/16 at 100.00
AA–
   
575,198
 
 
9,000
 
Los Angeles County Sanitation Districts Financing Authority, California, Capital Projects Revenue Bonds, District 14, Series 2005, 5.000%, 10/01/34 – FGIC Insured
10/15 at 100.00
A+
   
9,030,870
 
 
4,500
 
Los Angeles County Sanitation Districts Financing Authority, California, Senior Revenue Bonds, Capital Projects, Series 2003A, 5.000%, 10/01/23 – AGM Insured
10/13 at 100.00
AA+
   
4,824,225
 
 
1,560
 
Manteca Financing Authority, California, Sewerage Revenue Bonds, Series 2003B, 5.000%, 12/01/33 – NPFG Insured
12/13 at 100.00
Aa3
   
1,567,051
 
 
500
 
Marina Coast Water District, California, Enterprise Certificate of Participation, Series 2006, 5.000%, 6/01/31 – NPFG Insured
6/16 at 100.00
AA–
   
506,495
 
 
9,185
 
Orange County Sanitation District, California, Certificates of Participation, Series 2003, 5.000%, 2/01/33 – FGIC Insured (UB)
8/13 at 100.00
AAA
   
9,309,365
 
 
Nuveen Investments
 
61

 
 

 
 
   
Nuveen Insured California Dividend Advantage Municipal Fund (continued)
NKL
 
Portfolio of Investments
August 31, 2011 (Unaudited)
 
 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
Water and Sewer (continued)
           
$
8,000
 
San Diego County Water Authority, California, Water Revenue Certificates of Participation, Series 2008A, 5.000%, 5/01/38 – AGM Insured
5/18 at 100.00
AA+
 
$
8,225,360
 
     
Semitropic Water Storage District, Kern County, California, Water Banking Revenue Bonds, Series 2004A:
           
 
1,315
 
5.500%, 12/01/20 – SYNCORA GTY Insured
12/14 at 100.00
AA
   
1,461,281
 
 
1,415
 
5.500%, 12/01/21 – SYNCORA GTY Insured
12/14 at 100.00
AA
   
1,572,401
 
 
38,980
 
Total Water and Sewer
       
40,115,477
 
$
487,308
 
Total Investments (cost $330,852,748) – 148.5%
       
334,584,349
 
     
Floating Rate Obligations – (3.3)%
       
(7,385,000
     
Variable Rate Demand Preferred Shares, at Liquidation Value – (46.3)% (6)
       
(104,400,000
     
Other Assets Less Liabilities – 1.1%
       
2,516,791
 
     
Net Assets Applicable to Common Shares – 100%
     
$
225,316,140
 
 
   
The Fund intends to invest at least 80% of its managed assets in municipal securities that are covered by insurance guaranteeing the timely payment of principal and interest. See Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies, Insurance for more information.
(1)
 
All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted.
(2)
 
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. Certain mortgage-backed securities may be subject to periodic principal paydowns.
(3)
 
Ratings: Using the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investor Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies.
(4)
 
Investment, or portion of investment, has been pledged to collaterize the net payment obligations for investments in inverse floating rate transactions.
(5)
 
Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities, which ensure the timely payment of principal and interest. Bonds backed by U.S. Government or agency securities are given an implied rating equal to the rating of such securities.
(6)
 
Variable Rate Demand Preferred Shares, at Liquidation Value as a percentage of Total Investments is 31.2%.
N/R
 
Not rated.
(IF)
 
Inverse floating rate investment.
(UB)
 
Underlying bond of an inverse floating rate trust reflected as a financing transaction. See Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies, Inverse Floating Rate Securities for more information.
 
See accompanying notes to financial statements.
 
62
 
Nuveen Investments

 
 

 
 
   
Nuveen Insured California Tax-Free Advantage Municipal Fund
NKX
 
Portfolio of Investments
   
August 31, 2011 (Unaudited)
 
 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
Consumer Staples – 4.6% (3.2% of Total Investments)
           
$
6,070
 
Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed Bonds, Series 2007A-2, 0.000%, 6/01/37
6/22 at 100.00
BB+
 
$
3,763,521
 
     
Health Care – 24.8% (17.5% of Total Investments)
           
 
1,630
 
California Health Facilities Financing Authority, Revenue Bonds, Childrens Hospital Los Angeles, Series 2010A, 5.250%, 7/01/38 – AGC Insured
7/20 at 100.00
AA+
   
1,598,834
 
 
662
 
California Statewide Communities Development Authority, Revenue Bonds, Saint Joseph Health System, Trust 2554, 18.324%, 7/01/47 – AGM Insured (IF)
7/18 at 100.00
AA+
   
676,079
 
 
4,000
 
California Statewide Community Development Authority, Insured Health Facility Revenue Bonds, Catholic Healthcare West, Series 2008K, 5.500%, 7/01/41 – AGC Insured
7/17 at 100.00
AA+
   
4,068,440
 
 
1,815
 
California Statewide Community Development Authority, Revenue Bonds, Kaiser Permanante System, Series 2006, 5.000%, 3/01/41
3/16 at 100.00
A+
   
1,708,478
 
 
5,020
 
California Statewide Community Development Authority, Revenue Bonds, Kaiser Permanente System, Series 2006, 5.000%, 3/01/41 – BHAC Insured (UB)
3/16 at 100.00
AA+
   
5,043,092
 
 
4,060
 
California Statewide Community Development Authority, Revenue Bonds, Sherman Oaks Health System, Series 1998A, 5.000%, 8/01/22 – AMBAC Insured
No Opt. Call
A1
   
4,256,301
 
 
1,500
 
California Statewide Community Development Authority, Revenue Bonds, St. Joseph Health System, Series 2007A, 5.750%, 7/01/47 – FGIC Insured
7/18 at 100.00
AA–
   
1,512,165
 
 
1,500
 
Santa Clara County Financing Authority, California, Insured Revenue Bonds, El Camino Hospital, Series 2007A, 5.750%, 2/01/41 – AMBAC Insured
8/17 at 100.00
A+
   
1,526,970
 
 
20,187
 
Total Health Care
       
20,390,359
 
     
Housing/Multifamily – 1.5% (1.0% of Total Investments)
           
 
1,165
 
Poway, California, Housing Revenue Bonds, Revenue Bonds, Poinsettia Mobile Home Park, Series 2003, 5.000%, 5/01/23
5/13 at 102.00
AA–
   
1,193,519
 
     
Long-Term Care – 7.4% (5.2% of Total Investments)
           
 
3,000
 
ABAG Finance Authority for Non-Profit Corporations, California, Cal-Mortgage Insured Revenue Bonds, Channing House, Series 2010, 6.125%, 5/15/40
5/20 at 100.00
A–
   
3,016,740
 
 
1,000
 
ABAG Finance Authority for Non-Profit Corporations, California, Insured Senior Living Revenue Bonds, Odd Fellows Home of California, Series 2003A, 5.200%, 11/15/22
11/12 at 100.00
A–
   
1,010,500
 
 
2,000
 
California Health Facilities Financing Authority, Cal-Mortgage Insured Revenue Bonds, Northern California Retired Officers Community Corporation – Paradise Valley Estates, Series 2002, 5.250%, 1/01/26
1/13 at 100.00
A–
   
2,024,380
 
 
6,000
 
Total Long-Term Care
       
6,051,620
 
     
Tax Obligation/General – 11.5% (8.2% of Total Investments)
           
 
2,000
 
Butte-Glenn Community College District, Butte and Glenn Counties, California, General Obligation Bonds, Series 2002A, 5.000%, 8/01/26 – NPFG Insured
8/12 at 101.00
Aa2
   
2,073,320
 
 
1,030
 
Fontana Unified School District, San Bernardino County, California, General Obligation Bonds, Trust 2668, 9.359%, 2/01/16 – AGM Insured (IF)
No Opt. Call
AA+
   
1,164,333
 
 
450
 
Fremont Unified School District, Alameda County, California, General Obligation Bonds, Series 2002A, 5.000%, 8/01/25 – FGIC Insured
8/12 at 101.00
Aa2
   
468,648
 
 
1,000
 
Murrieta Valley Unified School District, Riverside County, California, General Obligation Bonds, Series 2003A, 5.000%, 9/01/26 – FGIC Insured
9/13 at 100.00
A+
   
1,045,580
 
 
1,000
 
Murrieta Valley Unified School District, Riverside County, California, General Obligation Bonds, Series 2007, 4.500%, 9/01/30 – AGM Insured
9/17 at 100.00
AA+
   
996,840
 
 
140
 
Roseville Joint Union High School District, Placer County, California, General Obligation Bonds, Series 2006B, 5.000%, 8/01/27 – FGIC Insured
8/15 at 100.00
AA–
   
144,948
 
 
12,520
 
Yosemite Community College District, California, General Obligation Bonds, Capital Appreciation, Election 2004, Series 2010D, 0.000%, 8/01/42
No Opt. Call
Aa2
   
3,573,834
 
 
18,140
 
Total Tax Obligation/General
       
9,467,503
 
 
Nuveen Investments
 
63

 
 

 
 
   
Nuveen Insured California Tax-Free Advantage Municipal Fund (continued)
NKX
 
Portfolio of Investments
August 31, 2011 (Unaudited)
 
 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
Tax Obligation/Limited – 45.1% (31.8% of Total Investments)
           
$
550
 
Baldwin Park Public Financing Authority, California, Sales Tax and Tax Allocation Bonds, Puente Merced Redevelopment Project, Series 2003, 5.250%, 8/01/21
8/13 at 102.00
BBB
 
$
567,122
 
 
1,165
 
Burbank Public Financing Authority, California, Revenue Refunding Bonds, Golden State Redevelopment Project, Series 2003A, 5.250%, 12/01/22 – AMBAC Insured
12/13 at 100.00
A
   
1,173,027
 
 
4,000
 
California State Public Works Board, Lease Revenue Bonds, Department of General Services, Capital East End Project, Series 2002A, 5.000%, 12/01/27 – AMBAC Insured
12/12 at 100.00
A2
   
4,010,040
 
 
170
 
Capistrano Unified School District, Orange County, California, Special Tax Bonds, Community Facilities District, Series 2005, 5.000%, 9/01/24 – FGIC Insured
9/15 at 100.00
BBB
   
168,239
 
 
525
 
Chino Redevelopment Agency, California, Merged Chino Redevelopment Project Area Tax Allocation Bonds, Series 2006, 5.000%, 9/01/38 – AMBAC Insured
9/16 at 101.00
A–
   
454,608
 
 
1,610
 
Folsom Public Financing Authority, California, Special Tax Revenue Bonds, Series 2004A, 5.000%, 9/01/21 – AMBAC Insured
9/12 at 102.00
N/R
   
1,543,926
 
 
3,285
 
Golden State Tobacco Securitization Corporation, California, Enhanced Tobacco Settlement Asset-Backed Revenue Bonds, Series 2005A, 5.000%, 6/01/45 – AMBAC Insured
6/15 at 100.00
A2
   
2,901,772
 
 
2,905
 
Golden State Tobacco Securitization Corporation, California, Enhanced Tobacco Settlement Asset-Backed Revenue Bonds, Tender Option Bonds Trust 4686, 8.953%, 6/01/45 – AGC Insured (IF) (4)
6/15 at 100.00
AA+
   
2,452,633
 
 
700
 
Hesperia Public Financing Authority, California, Redevelopment and Housing Projects Tax Allocation Bonds, Series 2007A, 5.000%, 9/01/37 – SYNCORA GTY Insured
9/17 at 100.00
Ba1
   
463,351
 
 
5,125
 
Irvine Public Facilities and Infrastructure Authority, California, Assessment Revenue Bonds, Series 2003C, 5.000%, 9/02/21 – AMBAC Insured
9/13 at 100.00
N/R
   
5,178,451
 
 
315
 
Los Angeles Community Redevelopment Agency, California, Lease Revenue Bonds, Manchester Social Services Project, Series 2005, 5.000%, 9/01/37 – AMBAC Insured
9/15 at 100.00
A1
   
284,108
 
 
1,770
 
Los Angeles Unified School District, California, Certificates of Participation, Administration Building Project II, Series 2002C, 5.000%, 10/01/27 – AMBAC Insured
10/12 at 100.00
Aa3
   
1,774,354
 
 
2,000
 
Los Angeles, California, Certificates of Participation, Municipal Improvement Corporation, Series 2003AW, 5.000%, 6/01/33 – AMBAC Insured
6/13 at 100.00
A+
   
2,012,320
 
 
1,500
 
Los Angeles, California, Municipal Improvement Corporation, Lease Revenue Bonds, Police Headquarters, Series 2006A, 4.750%, 1/01/31 – FGIC Insured
1/17 at 100.00
A+
   
1,435,845
 
 
1,500
 
Los Osos, California, Improvement Bonds, Community Services Wastewater Assessment District 1, Series 2002, 5.000%, 9/02/33 – NPFG Insured
3/13 at 100.00
Baa1
   
1,199,910
 
 
150
 
Rialto Redevelopment Agency, California, Tax Allocation Bonds, Merged Project Area, Series 2005A, 5.000%, 9/01/35 – SYNCORA GTY Insured
9/15 at 100.00
A–
   
131,568
 
 
190
 
Roseville, California, Certificates of Participation, Public Facilities, Series 2003A, 5.000%, 8/01/25 – AMBAC Insured
8/13 at 100.00
AA–
   
191,683
 
     
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
AA–
   
3,003,300
 
 
3,300
 
5.000%, 2/01/32 – AMBAC Insured
2/12 at 100.00
AA–
   
3,213,375
 
 
1,200
 
San Diego Redevelopment Agency, California, Subordinate Lien Tax Increment and Parking Revenue Bonds, Centre City Project, Series 2003B, 5.250%, 9/01/26
11/11 at 100.00
Baa2
   
1,199,952
 
 
2,770
 
San Jose Financing Authority, California, Lease Revenue Refunding Bonds, Civic Center Project, Series 2002B, 5.000%, 6/01/32 – AMBAC Insured
6/12 at 100.00
AA+
   
2,776,565
 
 
1,000
 
San Jose Redevelopment Agency, California, Tax Allocation Bonds, Merged Project Area, Series 2005A, 5.000%, 8/01/28 – NPFG Insured
8/15 at 100.00
BBB+
   
858,400
 
 
38,730
 
Total Tax Obligation/Limited
       
36,994,549
 
 
64
 
Nuveen Investments

 
 

 
 
 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
Transportation – 8.1% (5.7% of Total Investments)
           
$
5,480
 
Bay Area Governments Association, California, BART SFO Extension, Airport Premium Fare Revenue Bonds, Series 2002A, 5.000%, 8/01/26 – AMBAC Insured
8/12 at 100.00
N/R
 
$
4,969,648
 
 
2,000
 
Foothill/Eastern Transportation Corridor Agency, California, Toll Road Revenue Bonds, Series 1995A, 5.000%, 1/01/35
1/12 at 100.00
BBB–
   
1,635,840
 
 
7,480
 
Total Transportation
       
6,605,488
 
     
U.S. Guaranteed – 24.1% (17.0% of Total Investments) (5)
           
 
1,000
 
Berryessa Union School District, Santa Clara County, California, General Obligation Bonds, Series 2003C, 5.000%, 8/01/21 (Pre-refunded 8/01/12) – AGM Insured
8/12 at 100.00
AA+ (5)
   
1,044,240
 
     
California State, General Obligation Bonds, Series 2002:
           
 
1,000
 
5.000%, 4/01/27 (Pre-refunded 4/01/12) – AMBAC Insured
4/12 at 100.00
AA+ (5)
   
1,028,420
 
 
2,945
 
5.250%, 4/01/30 (Pre-refunded 4/01/12) – SYNCORA GTY Insured
4/12 at 100.00
AA+ (5)
   
3,032,967
 
 
500
 
California State, General Obligation Bonds, Series 2004, 5.250%, 4/01/34 (Pre-refunded 4/01/14)
4/14 at 100.00
Aaa
   
562,535
 
 
1,625
 
Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed Revenue Bonds, Series 2003A-2, 7.900%, 6/01/42 (Pre-refunded 6/01/13)
6/13 at 100.00
Aaa
   
1,834,300
 
 
2,030
 
Hacienda La Puente Unified School District, Los Angeles County, California, General Obligation Bonds, Series 2003B, 5.000%, 8/01/27 (Pre-refunded
8/13 at 100.00
AA+ (5)
   
2,210,650
 
         8/01/13) – AGM Insured            
 
2,000
 
Los Angeles, California, General Obligation Bonds, Series 2002A, 5.000%, 9/01/22 (Pre-refunded 9/01/12) – NPFG Insured
9/12 at 100.00
AA– (5)
   
2,095,820
 
 
1,260
 
Rancho Mirage Joint Powers Financing Authority, California, Revenue Bonds, Eisenhower Medical Center, Series 2004, 5.875%, 7/01/26 (Pre-refunded 7/01/14)
7/14 at 100.00
Baa1 (5)
   
1,452,415
 
 
3,855
 
San Rafael City High School District, Marin County, California, General Obligation Bonds, Series 2003A, 5.000%, 8/01/28 (Pre-refunded 8/01/12) – AGM Insured
8/12 at 100.00
AA+ (5)
   
4,024,813
 
 
2,390
 
Solano County, California, Certificates of Participation, Series 2002, 5.250%, 11/01/24 (Pre-refunded 11/01/12) – NPFG Insured
11/12 at 100.00
AA– (5)
   
2,529,170
 
 
18,605
 
Total U.S. Guaranteed
       
19,815,330
 
     
Utilities – 3.0% (2.2% of Total Investments)
           
 
1,000
 
Anaheim Public Finance Authority, California, Second Lien Electric Distribution Revenue Bonds, Series 2004, 5.250%, 10/01/21 – NPFG Insured
10/14 at 100.00
A+
   
1,042,880
 
 
945
 
Long Beach Bond Finance Authority, California, Natural Gas Purchase Revenue Bonds, Series 2007A, 5.500%, 11/15/37
No Opt. Call
A
   
872,622
 
 
275
 
Los Angeles Department of Water and Power, California, Power System Revenue Bonds, Series 2003A-2, 5.000%, 7/01/21 – NPFG Insured
7/13 at 100.00
AA–
   
291,770
 
 
310
 
Merced Irrigation District, California, Electric System Revenue Bonds, Series 2005, 5.125%, 9/01/31 – SYNCORA GTY Insured
9/15 at 100.00
N/R
   
279,986
 
 
2,530
 
Total Utilities
       
2,487,258
 
     
Water and Sewer – 11.7% (8.2% of Total Investments)
           
 
1,000
 
Castaic Lake Water Agency, California, Certificates of Participation, Series 2006C, 5.000%, 8/01/36 – NPFG Insured
8/16 at 100.00
AA–
   
1,001,900
 
 
750
 
Fortuna Public Finance Authority, California, Water Revenue Bonds, Series 2006, 5.000%, 10/01/36 – AGM Insured
10/16 at 100.00
AA+
   
755,820
 
 
215
 
Healdsburg Public Financing Authority, California, Wastewater Revenue Bonds, Series 2006, 5.000%, 4/01/36 – NPFG Insured
4/16 at 100.00
AA–
   
216,961
 
 
575
 
Manteca Financing Authority, California, Sewerage Revenue Bonds, Series 2003B, 5.000%, 12/01/33 – NPFG Insured
12/13 at 100.00
Aa3
   
577,599
 
 
Nuveen Investments
 
65

 
 

 
 
   
Nuveen Insured California Tax-Free Advantage Municipal Fund (continued)
NKX
 
Portfolio of Investments
     August 31, 2011 (Unaudited)
 
 
Principal
   
Optional Call
         
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
   
Value
 
     
Water and Sewer (continued)
           
$
170
 
Marina Coast Water District, California, Enterprise Certificate of Participation, Series 2006, 5.000%, 6/01/31 – NPFG Insured
6/16 at 100.00
AA–
 
$
172,208
 
     
San Diego Public Facilities Financing Authority, California, Subordinate Lien Water Revenue Bonds, Series 2002:
           
 
3,000
 
5.000%, 8/01/22 – NPFG Insured
8/12 at 100.00
Aa3
   
3,093,900
 
 
2,500
 
5.000%, 8/01/23 – NPFG Insured
8/12 at 100.00
Aa3
   
2,575,000
 
 
1,180
 
South Feather Water and Power Agency, California, Water Revenue Certificates of Participation, Solar Photovoltaic Project, Series 2003, 5.375%, 4/01/24
4/13 at 100.00
A
   
1,188,567
 
 
9,390
 
Total Water and Sewer
       
9,581,955
 
$
128,297
 
Total Investments (cost $117,366,340) – 141.8%
       
116,351,102
 
     
Floating Rate Obligations – (4.1)%
       
(3,360,000
     
Variable Rate Demand Preferred Shares, at Liquidation Value – (43.3)% (6)
       
(35,500,000
     
Other Assets Less Liabilities – 5.6%
       
4,567,786
 
     
Net Assets Applicable to Common Shares – 100%
     
$
82,058,888
 
 
   
The Fund intends to invest at least 80% of its managed assets in municipal securities that are covered by insurance guaranteeing the timely payment of principal and interest. See Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies, Insurance for more information.
(1)
 
All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted.
(2)
 
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. Certain mortgage-backed securities may be subject to periodic principal paydowns.
(3)
 
Ratings: Using the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investor Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies.
(4)
 
Investment, or portion of investment, has been pledged to collaterize the net payment obligations for investments in inverse floating rate transactions.
(5)
 
Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities, which ensure the timely payment of principal and interest. Bonds backed by U.S. Government or agency securities are given an implied rating equal to the rating of such securities.
(6)
 
Variable Rate Demand Preferred Shares, at Liquidation Value as a percentage of Total Investments is 30.5%.
N/R
 
Not rated.
(IF)
 
Inverse floating rate investment.
(UB)
 
Underlying bond of an inverse floating rate trust reflected as a financing transaction. See Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies, Inverse Floating Rate Securities for more information.
 
See accompanying notes to financial statements.

66
 
Nuveen Investments

 
 

 

   
Statement of
   
Assets & Liabilities
      August 31, 2011 (Unaudited)
 
     
Insured
California
Premium
Income
(NPC
)
 
Insured
California
Premium
Income 2
(NCL
)
 
California
Premium
Income
(NCU
)
 
California
Dividend
Advantage
(NAC
)
Assets
                         
Investments, at value (cost $129,969,082, $263,674,448, $118,175,890 and $474,080,086, respectively)
 
$
134,907,914
 
$
266,052,088
 
$
120,480,672
 
$
471,401,920
 
Cash
   
1,819,427
   
488,333
   
452,370
   
8,334,939
 
Receivables:
                         
Interest
   
2,396,937
   
3,402,825
   
1,489,202
   
7,168,168
 
Investments sold
   
   
3,263,915
   
150,000
   
3,668,588
 
Deferred offering costs
   
816,300
   
612,944
   
705,977
   
646,253
 
Other assets
   
43,307
   
83,955
   
19,310
   
192,149
 
Total assets
   
139,983,885
   
273,904,060
   
123,297,531
   
491,412,017
 
Liabilities
                         
Cash overdraft
   
   
   
   
 
Floating rate obligations
   
   
17,880,000
   
6,650,000
   
28,545,000
 
Payables:
                         
Common share dividends
   
424,215
   
851,373
   
389,669
   
1,692,156
 
Interest
   
   
   
58,750
   
 
Investments purchased
   
   
   
185,000
   
 
Offering costs
   
371,743
   
326,455
   
161,250
   
362,502
 
MuniFund Term Preferred (MTP) Shares, at liquidation value
   
   
   
35,250,000
   
 
Variable Rate Demand Preferred (VRDP) Shares, at liquidation value
   
42,700,000
   
74,000,000
   
   
136,200,000
 
Accrued expenses:
                         
Management fees
   
75,473
   
145,232
   
65,149
   
259,751
 
Other
   
38,711
   
91,363
   
38,233
   
148,964
 
Total liabilities
   
43,610,142
   
93,294,423
   
42,798,051
   
167,208,373
 
Net assets applicable to Common shares
 
$
96,373,743
 
$
180,609,637
 
$
80,499,480
 
$
324,203,644
 
Common shares outstanding
   
6,442,132
   
12,664,222
   
5,730,688
   
23,480,254
 
Net asset value per Common share outstanding (net assets applicable to Common shares,divided by Common shares outstanding)
 
$
14.96
 
$
14.26
 
$
14.05
 
$
13.81
 
Net assets applicable to Common shares consist of:
                         
Common shares, $.01 par value per share
 
$
64,421
 
$
126,642
 
$
57,307
 
$
234,803
 
Paid-in surplus
   
89,180,971
   
175,784,939
   
77,795,020
   
334,346,848
 
Undistributed (Over-distribution of) net investment income
   
1,556,666
   
3,413,343
   
1,340,173
   
7,154,160
 
Accumulated net realized gain (loss)
   
632,853
   
(1,092,927
)
 
(997,802
)
 
(14,854,001
)
Net unrealized appreciation (depreciation)
   
4,938,832
   
2,377,640
   
2,304,782
   
(2,678,166
)
Net assets applicable to Common shares
 
$
96,373,743
 
$
180,609,637
 
$
80,499,480
 
$
324,203,644
 
Authorized shares:
                         
Common
   
200,000,000
   
200,000,000
   
Unlimited
   
Unlimited
 
Auction Rate Preferred Shares (ARPS)
   
1,000,000
   
1,000,000
   
Unlimited
   
Unlimited
 
MTP
   
   
   
Unlimited
   
 
VRDP
   
Unlimited
   
Unlimited
   
   
Unlimited
 
 
See accompanying notes to financial statements.
 
Nuveen Investments
 
67

 
 

 
 
   
Statement of
   
Assets & Liabilities (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 value (cost $311,810,849, $467,625,600, $330,852,748 and $117,366,340, respectively)
 
$
312,133,175
 
$
458,328,583
 
$
334,584,349
 
$
116,351,102
 
Cash
   
4,803,905
   
808,600
   
   
2,691,217
 
Receivables:
                         
Interest
   
4,804,135
   
7,755,590
   
4,165,364
   
1,478,260
 
Investments sold
   
   
9,329,701
   
   
423,300
 
Deferred offering costs
   
1,742,352
   
2,553,018
   
576,657
   
481,179
 
Other assets
   
78,952
   
142,468
   
135,037
   
30,384
 
Total assets
   
323,562,519
   
478,917,960
   
339,461,407
   
121,455,442
 
Liabilities
                         
Cash overdraft
   
   
   
549,536
   
 
Floating rate obligations
   
11,390,000
   
3,845,000
   
7,385,000
   
3,360,000
 
Payables:
                         
Common share dividends
   
1,147,793
   
1,741,133
   
1,155,491
   
379,603
 
Interest
   
177,866
   
351,707
   
   
 
Investments purchased
   
   
   
   
 
Offering costs
   
357,949
   
631,539
   
382,495
   
62,067
 
MuniFund Term Preferred (MTP) Shares, at liquidation value
   
97,846,300
   
159,544,500
   
   
 
Variable Rate Demand Preferred (VRDP) Shares, at liquidation value
   
   
   
104,400,000
   
35,500,000
 
Accrued expenses:
                         
Management fees
   
171,190
   
238,424
   
165,253
   
64,939
 
Other
   
96,070
   
140,363
   
107,492
   
29,945
 
Total liabilities
   
111,187,168
   
166,492,666
   
114,145,267
   
39,396,554
 
Net assets applicable to Common shares
 
$
212,375,351
 
$
312,425,294
 
$
225,316,140
 
$
82,058,888
 
Common shares outstanding
   
14,746,722
   
24,127,919
   
15,256,178
   
5,887,263
 
Net asset value per Common share outstanding (net assets applicable to Common shares, divided by Common shares outstanding)
 
$
14.40
 
$
12.95
 
$
14.77
 
$
13.94
 
Net assets applicable to Common shares consist of:
                         
Common shares, $.01 par value per share
 
$
147,467
 
$
241,279
 
$
152,562
 
$
58,873
 
Paid-in surplus
   
209,550,622
   
339,609,212
   
216,717,909
   
82,864,904
 
Undistributed (Over-distribution of) net investment income
   
3,649,702
   
3,030,535
   
5,031,300
   
1,174,372
 
Accumulated net realized gain (loss)
   
(1,294,766
)
 
(21,158,715
)
 
(317,232
)
 
(1,024,023
)
Net unrealized appreciation (depreciation)
   
322,326
   
(9,297,017
)
 
3,731,601
   
(1,015,238
)
Net assets applicable to Common shares
 
$
212,375,351
 
$
312,425,294
 
$
225,316,140
 
$
82,058,888
 
Authorized shares:
                         
Common
   
Unlimited
   
Unlimited
   
Unlimited
   
Unlimited
 
Auction Rate Preferred Shares (ARPS)
   
Unlimited
   
Unlimited
   
Unlimited
   
Unlimited
 
MTP
   
Unlimited
   
Unlimited
   
   
 
VRDP
   
   
   
Unlimited
   
Unlimited
 
 
See accompanying notes to financial statements.
 
68
 
Nuveen Investments

 
 

 
 
   
Statement of
   
Operations
      Six Months Ended August 31, 2011 (Unaudited)
 
      Insured     Insured              
      California     California     California     California  
     
Premium
   
Premium
   
 Premium
   
 Dividend
 
     
 Income
   
 Income 2
   
Income
   
Advantage
 
     
(NPC
)
 
(NCL
)
 
(NCU
)
 
(NAC
)
Investment Income
 
$
3,700,175
 
$
7,031,823
 
$
3,307,442
 
$
13,498,332
 
Expenses
                         
Management fees
   
431,472
   
833,959
   
375,257
   
1,491,123
 
Auction fees
   
   
   
   
56,375
 
Dividend disbursing agent fees
   
   
   
   
10,082
 
Shareholders’ servicing agent fees and expenses
   
3,482
   
5,544
   
10,533
   
1,759
 
Interest expense and amortization of offering costs
   
90,529
   
211,713
   
456,825
   
164,511
 
Liquidity fees on VRDP
   
222,282
   
288,914
   
   
242,759
 
Custodian’s fees and expenses
   
13,907
   
23,969
   
12,283
   
38,287
 
Directors’/Trustees’ fees and expenses
   
1,665
   
3,065
   
1,406
   
4,928
 
Professional fees
   
15,605
   
14,100
   
17,511
   
15,474
 
Shareholders’ reports – printing and mailing expenses
   
7,792
   
11,393
   
9,943
   
16,405
 
Stock exchange listing fees
   
4,468
   
4,468
   
13,589
   
14,454
 
Investor relations expense
   
4,819
   
8,554
   
4,712
   
14,271
 
Other expenses
   
38,344
   
61,449
   
18,067
   
37,829
 
Total expenses before custodian fee credit and expense reimbursement
   
834,365
   
1,467,128
   
920,126
   
2,108,257
 
Custodian fee credit
   
(148
)
 
(456
)
 
(290
)
 
(603
)
Expense reimbursement
   
   
   
   
 
Net expenses
   
834,217
   
1,466,672
   
919,836
   
2,107,654
 
Net investment income (loss)
   
2,865,958
   
5,565,151
   
2,387,606
   
11,390,678
 
Realized and Unrealized Gain (Loss)
                         
Net realized gain (loss) from:
                         
Investments
   
447,645
   
596,344
   
(27,919
)
 
(661,860
)
Forward swaps
   
   
(346,971
)
 
   
 
Change in net unrealized appreciation (depreciation) of:
                         
Investments
   
8,035,447
   
14,890,967
   
6,357,164
   
26,507,176
 
Forward swaps
   
   
15,872
   
   
 
Net realized and unrealized gain (loss)
   
8,483,092
   
15,156,212
   
6,329,245
   
25,845,316
 
Distributions to Auction Rate Preferred Shareholders
                         
From net investment income
   
   
   
   
(165,755
)
Decrease in net assets applicable to Common shares from distributions to Auction Rate Preferred shareholders
   
   
   
   
(165,755
)
Net increase (decrease) in net assets applicable to Common shares from operations
 
$
11,349,050
 
$
20,721,363
 
$
8,716,851
 
$
37,070,239
 
 
See accompanying notes to financial statements.
 
Nuveen Investments
 
69

 
 

 

   
Statement of
   
Operations (continued)
Six Months Ended August 31, 2011 (Unaudited)
 
                  Insured      Insured  
        California       California     California       California  
     
 Dividend
   
 Dividend
   
Dividend
   
Tax-Free
 
     
Advantage 2
   
Advantage 3
   
 Advantage
   
Advantage
 
     
(NVX
)
 
(NZH
)
 
(NKL
)
 
(NKX
)
Investment Income
 
$
9,071,401
 
$
13,666,299
 
$
9,154,750
 
$
3,221,235
 
Expenses
                         
Management fees
   
987,934
   
1,499,726
   
1,036,009
   
373,146
 
Auction fees
   
   
7,192
   
28,892
   
 
Dividend disbursing agent fees
   
3,342
   
13,425
   
10,082
   
 
Shareholders’ servicing agent fees and expenses
   
10,976
   
17,631
   
827
   
422
 
Interest expense and amortization of offering costs
   
1,275,433
   
2,098,441
   
80,938
   
79,048
 
Liquidity fees on VRDP
   
   
   
186,080
   
184,801
 
Custodian’s fees and expenses
   
24,877
   
40,881
   
28,244
   
11,974
 
Directors’/Trustees’ fees and expenses
   
3,982
   
5,704
   
3,679
   
1,376
 
Professional fees
   
12,590
   
15,444
   
11,941
   
19,928
 
Shareholders’ reports – printing and mailing expenses
   
16,860
   
20,930
   
12,599
   
7,192
 
Stock exchange listing fees
   
19,991
   
22,990
   
966
   
373
 
Investor relations expense
   
10,733
   
14,517
   
10,302
   
4,022
 
Other expenses
   
4,273
   
29,094
   
32,629
   
33,077
 
Total expenses before custodian fee credit and expense reimbursement
   
2,370,991
   
3,785,975
   
1,443,188
   
715,359
 
Custodian fee credit
   
(383
)
 
(801
)
 
(556
)
 
(298
)
Expense reimbursement
   
(13,080
)
 
(122,232
)
 
(97,657
)
 
 
Net expenses
   
2,357,528
   
3,662,942
   
1,344,975
   
715,061
 
Net investment income (loss)
   
6,713,873
   
10,003,357
   
7,809,775
   
2,506,174
 
Realized and Unrealized Gain (Loss)
                         
Net realized gain (loss) from:
                         
Investments
   
59,098
   
171,295
   
1,155,287
   
(12,171
)
Forward swaps
   
   
   
   
 
Change in net unrealized appreciation (depreciation) of:
                         
Investments
   
14,029,474
   
20,613,327
   
14,713,562
   
6,438,924
 
Forward swaps
   
   
   
   
 
Net realized and unrealized gain (loss)
   
14,088,572
   
20,784,622
   
15,868,849
   
6,426,753
 
Distributions to Auction Rate Preferred Shareholders
                         
From net investment income
   
(23,322
)
 
(68,172
)
 
(126,889
)
 
 
Decrease in net assets applicable to Common shares from distributions to Auction Rate Preferred shareholders
   
(23,322
)
 
(68,172
)
 
(126,889
)
 
 
Net increase (decrease) in net assets applicable to Common shares from operations
 
$
20,779,123
 
$
30,719,807
 
$
23,551,735
 
$
8,932,927
 
 
See accompanying notes to financial statements.
 
70
 
Nuveen Investments

 
 
 

 
 
   
Statement of
   
Changes in Net Assets (Unaudited)
 
   
Insured California
 
Insured California
    California  
    Premium Income (NPC)       Premium Income 2 (NCL)    
 Premium Income (NCU)
 
   
Six Months
   
Year
   
Six Months
   
Year
   
Six Months
   
Year
 
   
Ended
   
Ended
   
Ended
   
Ended
   
Ended
   
Ended
 
   
8/31/11
   
2/28/11
   
8/31/11
   
2/28/11
   
8/31/11
   
2/28/11
 
Operations
                                     
Net investment income (loss)
  $ 2,865,958     $ 5,688,214     $ 5,565,151     $ 11,578,448     $ 2,387,606     $ 5,256,437  
Net realized gain (loss) from:
                                               
Investments
    447,645       171,851       596,344       3,862,920       (27,919 )     17,475  
Forward swaps
                (346,971 )                  
Change in net unrealized appreciation (depreciation) of:
                                               
Investments
    8,035,447       (7,233,345 )     14,890,967       (16,035,141 )     6,357,164       (4,515,299 )
Forward swaps
                15,872       (15,872 )            
Distributions to Auction Rate Preferred Shareholders from net investment income
          (25,864 )           (280,073 )           (91,616 )
Net increase (decrease) in net assets applicable to Common shares from operations
    11,349,050       (1,399,144 )     20,721,363       (889,718 )     8,716,851       666,997  
Distributions to Common Shareholders
                                               
From net investment income
    (2,802,328 )     (5,537,014 )     (5,470,943 )     (10,941,930 )     (2,492,850 )     (4,944,267 )
From accumulated net realized gains
          (180,380 )                        
Decrease in net assets applicable to Common shares from distributions to Common shareholders
    (2,802,328 )     (5,717,394 )     (5,470,943 )     (10,941,930 )     (2,492,850 )     (4,944,267 )
Capital Share Transactions
                                               
Common shares:
                                               
Net proceeds issued to shareholders due to reinvestment of distributions
                      36,242              
Repurchased and retired
                      (14,592 )           (28,416 )
Net increase (decrease) in net assets applicable to Common shares from capital share transactions
                      21,650             (28,416 )
Net increase (decrease) in net assets applicable to Common shares
    8,546,722       (7,116,538 )     15,250,420       (11,809,998 )     6,224,001       (4,305,686 )
Net assets applicable to Common shares at the beginning of period
    87,827,021       94,943,559       165,359,217       177,169,215       74,275,479       78,581,165  
Net assets applicable to Common shares at the end of period
  $ 96,373,743     $ 87,827,021     $ 180,609,637     $ 165,359,217     $ 80,499,480     $ 74,275,479  
Undistributed (Over-distribution of) net investment income at the end of period
  $ 1,556,666     $ 1,493,036     $ 3,413,343     $ 3,319,135     $ 1,340,173     $ 1,445,417  
 
See accompanying notes to financial statements.
 
Nuveen Investments
 
71

 
 

 
 
   
Statement of
   
Changes in Net Assets (Unaudited) (continued)
 
   
California Dividend
Advantage (NAC)
   
California Dividend
Advantage 2 (NVX)
   
 California Dividend
Advantage 3 (NZH)
 
   
Six Months
Ended
8/31/11
   
Year
Ended
2/28/11
   
Six Months
Ended
8/31/11
   
Year
Ended
2/28/11
   
Six Months
Ended
8/31/11
   
Year
Ended
2/28/11
 
Operations
                                   
Net investment income (loss)
  $ 11,390,678     $ 23,199,120     $ 6,713,873     $ 15,204,018     $ 10,003,357     $ 21,221,264  
Net realized gain (loss) from:
                                               
Investments
    (661,860 )     504,735       59,098       1,606,851       171,295       (1,730,418 )
Forward swaps
                                   
Change in net unrealized appreciation (depreciation) of:
                                               
Investments
    26,507,176       (30,484,773 )     14,029,474       (17,378,595 )     20,613,327       (22,899,118 )
Forward swaps
                                   
Distributions to Auction Rate Preferred Shareholders from net investment income
    (165,755 )     (565,279 )     (23,322 )     (331,826 )     (68,172 )     (290,939 )
Net increase (decrease) in net assets applicable to Common shares from operations
    37,070,239       (7,346,197 )     20,779,123       (899,552 )     30,719,807       (3,699,211 )
Distributions to Common Shareholders
                                               
From net investment income
    (10,495,675 )     (20,815,246 )     (7,078,426 )     (14,112,614 )     (10,857,564 )     (21,711,954 )
From accumulated net realized gains
                                   
Decrease in net assets applicable to Common shares from distributions to Common shareholders
    (10,495,675 )     (20,815,246 )     (7,078,426 )     (14,112,614 )     (10,857,564 )     (21,711,954 )
Capital Share Transactions
                                               
Common shares:
                                               
Net proceeds issued to shareholders due to reinvestment of distributions
                                  114,072  
Repurchased and retired
                                   
Net increase (decrease) in net assets applicable to Common shares from capital share transactions
                                  114,072  
Net increase (decrease) in net assets applicable to Common shares
    26,574,564       (28,161,443 )     13,700,697       (15,012,166 )     19,862,243       (25,297,093 )
Net assets applicable to Common shares at the beginning of period
    297,629,080       325,790,523       198,674,654       213,686,820       292,563,051       317,860,144  
Net assets applicable to Common shares at the end of period
  $ 324,203,644     $ 297,629,080     $ 212,375,351     $ 198,674,654     $ 312,425,294     $ 292,563,051  
Undistributed (Over-distribution of) net investment income at the end of period
  $ 7,154,160     $ 6,424,912     $ 3,649,702     $ 4,037,577     $ 3,030,535     $ 3,952,914  
 
See accompanying notes to financial statements.
 
72
 
Nuveen Investments

 
 

 
 
   
Insured California
Dividend Advantage (NKL)
   
 Insured California
Tax-Free Advantage (NKX)
 
   
Six Months
Ended
8/31/11
   
Year
Ended
2/28/11
   
Six Months
Ended
8/31/11
   
Year
Ended
2/28/11
 
Operations
                       
Net investment income (loss)
  $ 7,809,775     $ 15,829,293     $ 2,506,174     $ 4,750,929  
Net realized gain (loss) from:
                               
Investments
    1,155,287       93,837       (12,171 )     105,651  
Forward swaps
                       
Change in net unrealized appreciation (depreciation) of:
                               
Investments
    14,713,562       (16,671,070 )     6,438,924       (7,235,385 )
Forward swaps
                       
Distributions to Auction Rate Preferred Shareholders from net investment income
    (126,889 )     (435,387 )            
Net increase (decrease) in net assets applicable to Common shares from operations
    23,551,735       (1,183,327 )     8,932,927       (2,378,805 )
Distributions to Common Shareholders
                               
From net investment income
    (7,185,660 )     (14,210,033 )     (2,366,680 )     (4,715,499 )
From accumulated net realized gains
                       
Decrease in net assets applicable to Common shares from distributions to Common shareholders
    (7,185,660 )     (14,210,033 )     (2,366,680 )     (4,715,499 )
Capital Share Transactions
                               
Common shares:
                               
Net proceeds issued to shareholders due to reinvestment of distributions
          42,871             8,413  
Repurchased and retired
                       
Net increase (decrease) in net assets applicable to Common shares from capital share transactions
          42,871             8,413  
Net increase (decrease) in net assets applicable to Common shares
    16,366,075       (15,350,489 )     6,566,247       (7,085,891 )
Net assets applicable to Common shares at the beginning of period
    208,950,065       224,300,554       75,492,641       82,578,532  
Net assets applicable to Common shares at the end of period
  $ 225,316,140     $ 208,950,065     $ 82,058,888     $ 75,492,641  
Undistributed (Over-distribution of) net investment income at the end of period
  $ 5,031,300     $ 4,534,074     $ 1,174,372     $ 1,034,878  
 
See accompanying notes to financial statements.
 
Nuveen Investments
 
73

 
 

 
 
 
   Statement of
 
   Cash Flows
   
Six Months Ended August 31, 2011 (Unaudited)
 
                   
   
Insured California
   
Insured California
   
California
 
   
Premium Income
   
Premium Income 2
   
Premium Income
 
    (NPC   (NCL   (NCU
Cash Flows from Operating Activities:
                 
Net Increase (Decrease) In Net Assets Applicable to Common Shares from Operations
  $ 11,349,050     $ 20,721,363     $ 8,716,851  
Adjustments to reconcile the net increase (decrease) in net assets applicable to Common shares from operations to net cash provided by (used in) operating activities:
                       
Purchases of investments
    (10,839,226 )     (5,028,600 )     (7,773,382 )
Proceeds from sales and maturities of investments
    12,734,546       8,335,739       7,585,176  
Proceeds from (Payments for) forward swap contracts, net
          (346,971 )      
Amortization (Accretion) of premiums and discounts, net
    220,995       (211,421 )     (90,700 )
(Increase) Decrease in:
                       
Receivable for interest
    24,198       11,931       28,761  
Receivable for investments sold
          (3,068,915 )     (150,000 )
Other assets
    (4,268 )     (6,960 )     (4,842 )
Increase (Decrease) in:
                       
Payable for Auction Rate Preferred Share dividends
                 
Payable for interest
                 
Payable for investments purchased
                185,000  
Accrued management fees
    11,639       22,238       9,808  
Accrued other expenses
    1,348       (2,051 )     4,421  
Net realized (gain) loss from:
                       
Investments
    (447,645 )     (596,344 )     27,919  
Forward swaps
          346,971        
Change in net unrealized (appreciation) depreciation of:
                       
Investments
    (8,035,447 )     (14,890,967 )     (6,357,164 )
Forward swaps
          (15,872 )      
Taxes paid on undistributed capital gains
    (10,023 )     (6,394 )     (528 )
Net cash provided by (used in) operating activities
    5,005,167       5,263,747       2,181,320  
Cash Flows from Financing Activities:
                       
(Increase) Decrease in deferred offering costs
    14,429       10,556       85,044  
Increase (Decrease) in:
                       
Cash overdraft balance
    (400,154 )            
Payable for offering costs
          (4,241 )     (2,893 )
MTP Shares, at liquidation value
                 
VRDP Shares, at liquidation value
                 
ARPS, at liquidation value
                 
Cash distributions paid to Common shareholders
    (2,800,015 )     (5,470,875 )     (2,492,699 )
Net cash provided by (used in) financing activities
    (3,185,740 )     (5,464,560 )     (2,410,548 )
Net Increase (Decrease) in Cash
    1,819,427       (200,813 )     (229,228 )
Cash at the beginning of period
          689,146       681,598  
Cash at the End of Period
  $ 1,819,427     $ 488,333     $ 452,370  
Supplemental Disclosure of Cash Flow Information
                       
Cash paid for interest (excluding amortization of offering costs) was as follows:
                       
                         
   
Insured California
   
Insured California
   
California
 
   
Premium Income
   
Premium Income 2
   
Premium Income
 
    (NPC   (NCL   (NCU
    $ 76,100     $ 201,157     $ 371,781  
 
See accompanying notes to financial statements.
 
74
 
Nuveen Investments

 
 

 
 
        California       California       California  
     
 Dividend
   
 Dividend
   
 Dividend
 
     
Advantage
   
Advantage 2
   
Advantage 3
 
     
(NAC
)
 
(NVX
)
 
(NZH
)
Cash Flows from Operating Activities:
                   
Net Increase (Decrease) In Net Assets Applicable to Common Shares from Operations
 
$
37,070,239
 
$
20,779,123
 
$
30,719,807
 
Adjustments to reconcile the net increase (decrease) in net assets applicable to Common shares from operations to net cash provided by (used in) operating activities:
                   
Purchases of investments
   
(32,370,115
)
 
(11,487,027
)
 
(33,705,919
)
Proceeds from sales and maturities of investments
   
47,058,240
   
14,216,407
   
40,001,620
 
Proceeds from (Payments for) forward swap contracts, net
   
   
   
 
Amortization (Accretion) of premiums and discounts, net
   
(1,106,782
)
 
(367,715
)
 
(525,949
)
(Increase) Decrease in:
                   
Receivable for interest
   
450,761
   
(18,929
)
 
(82,749
)
Receivable for investments sold
   
1,771,188
   
10,300
   
(4,544,766
)
Other assets
   
(48,115
)
 
(9,513
)
 
3,265
 
Increase (Decrease) in:
                   
Payable for Auction Rate Preferred Share dividends
   
(3,082
)
 
(4,536
)
 
(8,496
)
Payable for interest
   
   
83,908
   
139,676
 
Payable for investments purchased
   
(6,509,060
)
 
   
(3,364,178
)
Accrued management fees
   
38,902
   
37,014
   
33,814
 
Accrued other expenses
   
(8,616
)
 
(13,254
)
 
(18,220
)
Net realized (gain) loss from:
                   
Investments
   
661,860
   
(59,098
)
 
(171,295
)
Forward swaps
   
   
   
 
Change in net unrealized (appreciation) depreciation of:
                   
Investments
   
(26,507,176
)
 
(14,029,474
)
 
(20,613,327
)
Forward swaps
   
   
   
 
Taxes paid on undistributed capital gains
   
(742
)
 
(1,782
)
 
(1,609
)
Net cash provided by (used in) operating activities
   
20,497,502
   
9,135,424
   
7,861,674
 
Cash Flows from Financing Activities:
                   
(Increase) Decrease in deferred offering costs
   
(646,253
)
 
(654,958
)
 
(1,286,156
)
Increase (Decrease) in:
                   
Cash overdraft balance
   
(2,056,012
)
 
   
 
Payable for offering costs
   
362,502
   
127,034
   
370,910
 
MTP Shares, at liquidation value
   
   
42,846,300
   
73,294,500
 
VRDP Shares, at liquidation value
   
136,200,000
   
   
 
ARPS, at liquidation value
   
(135,525,000
)
 
(39,950,000
)
 
(69,500,000
)
Cash distributions paid to Common shareholders
   
(10,497,800
)
 
(7,082,234
)
 
(10,853,097
)
Net cash provided by (used in) financing activities
   
(12,162,563
)
 
(4,713,858
)
 
(7,973,843
)
Net Increase (Decrease) in Cash
   
8,334,939
   
4,421,566
   
(112,169
)
Cash at the beginning of period
   
   
382,339
   
920,769
 
Cash at the End of Period
 
$
8,334,939
 
$
4,803,905
 
$
808,600
 
Supplemental Disclosure of Cash Flow Information
                   
Cash paid for interest (excluding amortization of offering costs) was as follows:
                   
                     
      California     California     California  
     
 Dividend
   
 Dividend
   
 Dividend
 
     
Advantage
   
Advantage 2
   
Advantage 3
 
     
(NAC
)
 
(NVX
)
 
(NZH
)
   
$
160,764
 
$
953,405
 
$
1,635,635
 
 
See accompanying notes to financial statements.

Nuveen Investments
 
75

 
 

 
 
   
Statement of
   
Cash Flows (Unaudited) (continued)
 
     
Insured California
   
Insured California
 
     
Dividend Advantage
   
Tax-Free Advantage
 
     
(NKL
)
 
(NKX
)
Cash Flows from Operating Activities:
             
Net Increase (Decrease) In Net Assets Applicable to Common Shares from Operations
 
$
23,551,735
 
$
8,932,927
 
Adjustments to reconcile the net increase (decrease) in net assets applicable to Common shares from operations to net cash provided by (used in) operating activities:
             
Purchases of investments
   
(28,822,652
)
 
(1,495,410
)
Proceeds from sales and maturities of investments
   
26,677,784
   
3,906,596
 
Proceeds from (Payments for) forward swap contracts, net
   
   
 
Amortization (Accretion) of premiums and discounts, net
   
(914,117
)
 
(212,269
)
(Increase) Decrease in:
             
Receivable for interest
   
21,417
   
25,755
 
Receivable for investments sold
   
   
(423,300
)
Other assets
   
(56,710
)
 
4,699
 
Increase (Decrease) in:
             
Payable for Auction Rate Preferred Share dividends
   
(4,345
)
 
 
Payable for interest
   
   
 
Payable for investments purchased
   
   
 
Accrued management fees
   
36,129
   
10,017
 
Accrued other expenses
   
(11,130
)
 
4,674
 
Net realized (gain) loss from:
             
Investments
   
(1,155,287
)
 
12,171
 
Forward swaps
   
   
 
Change in net unrealized (appreciation) depreciation of:
             
Investments
   
(14,713,562
)
 
(6,438,924
)
Forward swaps
   
   
 
Taxes paid on undistributed capital gains
   
(575
)
 
(4,340
)
Net cash provided by (used in) operating activities
   
4,608,687
   
4,322,596
 
Cash Flows from Financing Activities:
             
(Increase) Decrease in deferred offering costs
   
(576,657
)
 
8,605
 
Increase (Decrease) in:
             
Cash overdraft balance
   
549,536
   
 
Payable for offering costs
   
382,495
   
(9,662
)
MTP Shares, at liquidation value
   
   
 
VRDP Shares, at liquidation value
   
104,400,000
   
 
ARPS, at liquidation value
   
(103,750,000
)
 
 
Cash distributions paid to Common shareholders
   
(7,186,438
)
 
(2,367,346
)
Net cash provided by (used in) financing activities
   
(6,181,064
)
 
(2,368,403
)
Net Increase (Decrease) in Cash
   
(1,572,377
)
 
1,954,193
 
Cash at the beginning of period
   
1,572,377
   
737,024
 
Cash at the End of Period
 
$
 
$
2,691,217
 
Supplemental Disclosure of Cash Flow Information
             
Cash paid for interest (excluding amortization of offering costs) was as follows:
             
 
     
Insured California
   
Insured California
 
     
Dividend Advantage
   
Tax-Free Advantage
 
     
(NKL
)
 
(NKX
)
   
$
77,595
 
$
70,443
 
 
See accompanying notes to financial statements.

76
 
Nuveen Investments

 
 

 
 
     Financial
     Highlights (Unaudited)
 
Nuveen Investments
 
  77
 
 
 

 
 
   
Financial
   
Highlights (Unaudited)
     
   Selected data for a Common share outstanding throughout each period:
 
     
 
   
Investment Operations
   
Less Distributions
   
 
             
     
Beginning
Common
Share
Net Asset
Value
   
Net
Investment
Income
(Loss)
 
 
Net
Realized/
Unrealized
Gain (Loss)
 
 
Distributions
from Net
Investment
Income to
Auction Rate
Preferred
Shareholders
(a)
 
Distributions
from
Capital
Gains to
Auction Rate
Preferred
Shareholders
(a)  
Total
   
 
Net Investment
Income to
Common
Share- holders
   
Capital
Gains to
Common
Share-
holders
   
Total
   
Discount
from
Common
Shares
Repurchased
and
Retired
   
Ending
Common
Share
Net Asset
Value
     
Ending
Market
Value
 
Insured California Premium Income (NPC)
                                                       
Year Ended 2/28–2/29:
                                                                   
2012(g)
 
$
13.63
 
$
.44
 
$
1.33
 
$
 
$
 
$
1.77
 
$
(.44
)
$
 
$
(.44
)
$
 
$
14.96
 
$
13.86
 
2011
   
14.74
   
.88
   
(1.10
)
 
**   
   
(.22
)
 
(.86
)
 
(.03
)
 
(.89
)
 
   
13.63
   
13.26
 
2010
   
14.03
   
.96
   
.55
   
(.03
)
 
(.02
)
 
1.46
   
(.75
)
 
   
(.75
)
 
**   
14.74
   
13.30
 
2009(f) 14.93    
.47
   
(.74
)
 
(.11
)
 
(.02
)
 
(.40
)
 
(.36
)
 
(.14
)
 
(.50
)
 
**   
14.03
   
12.04
 
Year Ended 8/31:
                                                                         
2008
   
15.04
   
.95
   
(.10
)
 
(.22
)
 
**   
.63
   
(.73
)
 
(.01
)
 
(.74
)
 
   
14.93
   
13.89
 
2007
   
15.58
   
.90
   
(.40
)
 
(.21
)
 
(.02
)
 
.27
   
(.73
)
 
(.08
)
 
(.81
)
 
   
15.04
   
14.96
 
2006
   
16.21
   
.92
   
(.38
)
 
(.18
)
 
(.02
)
 
.34
   
(.83
)
 
(.14
)
 
(.97
)
 
   
15.58
   
15.08
 
                                                                           
Insured California Premium Income 2 (NCL)
                                                     
Year Ended 2/28–2/29:
                                                                   
2012(g)
   
13.06
   
.44
   
1.19
   
   
   
1.63
   
(.43
)
 
   
(.43
)
 
   
14.26
   
13.64
 
2011
   
13.99
   
.91
   
(.96
)
 
(.02
)
 
   
(.07
)
 
(.86
)
 
   
(.86
)
 
**   
13.06
   
12.45
 
2010
   
12.85
   
.98
   
.99
   
(.03
)
 
(.02
)
 
1.92
   
(.78
)
 
   
(.78
)
 
**   
13.99
   
12.72
 
2009(f)
   
14.13
   
.44
   
(1.12
)
 
(.10
)
 
(.02
)
 
(.80
)
 
(.34
)
 
(.14
)
 
(.48
)
 
**   
12.85
   
10.89
 
Year Ended 8/31:
                                                                   
2008
   
14.50
   
.95
   
(.44
)
 
(.24
)
 
   
.27
   
(.64
)
 
   
(.64
)
 
   
14.13
   
12.66
 
2007
   
14.99
   
.89
   
(.46
)
 
(.25
)
 
   
.18
   
(.67
)
 
   
(.67
)
 
   
14.50
   
13.71
 
2006
   
15.33
   
.90
   
(.28
)
 
(.20
)
 
   
.42
   
(.76
)
 
   
(.76
)
 
   
14.99
   
14.19
 
 
(a)
The amounts shown are based on Common share equivalents.
(b)
Total Return Based 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. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending market price. The actual reinvestment for the last dividend declared in the period may take place over several days, and in some instances may not be based on the market price, so the actual reinvestment price may be different from the price used in the calculation. Total returns are not annualized.
 
Total Return Based 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. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending net asset value. The actual reinvest price for the last dividend declared in the period may often be based on the Fund’s market price (and not its net asset value), and therefore may be different from the price used in the calculation. Total returns are not annualized.
 
78
 
Nuveen Investments

 
 

 
 
 
 
   
 
     Ratios/Supplemental Data  
Total Returns           
 Ratios to Average Net Assets
Applicable to Common Shares(c)(d)
       
 
Based
on
Market
Value
(b)  
Based
on
Common
Share Net
Asset
Value
(b)  
Ending
Net
Assets
Applicable
to Common
Shares (000)
   
Expenses
(e)  
 
Net
Investment
Income (Loss)
     
 
Portfolio
Turnover
Rate
 
 
 
     
 
 
 
 
 
 
 
 
 
 
 
 
 
                                   
 
7.92
 
13.18
%
$
96,374
   
1.83
%*
 
6.28
%*
 
8
%
 
6.29
   
(1.75
)
 
87,827
   
1.77
   
6.03
   
6
 
 
17.13
   
10.66
   
94,944
   
1.19
   
6.68
   
10
 
 
(9.25
 
(2.43
)
 
90,531
   
1.27
 
6.88
 
1
 
                                   
 
(2.21
 
4.23
   
96,462
   
1.19
   
6.24
   
17
 
 
4.61
   
1.70
   
97,176
   
1.22
   
5.84
   
9
 
 
1.00
   
2.23
   
100,581
   
1.16
   
5.89
   
9
 
                                   
                                   
 
13.26
   
12.71
   
180,610
   
1.70
 
6.46
 
2
 
 
4.38
   
(.72
)
 
165,359
   
1.29
   
6.53
   
26
 
 
24.41
   
15.35
   
177,169
   
1.27
   
7.25
   
7
 
 
(9.95
 
(5.40
)
 
162,831
   
1.53
 
7.15
 
9
 
                                   
 
(3.06
 
1.86
   
179,734
   
1.23
   
6.56
   
12
 
 
1.26
   
1.18
   
184,343
   
1.24
   
6.00
   
19
 
 
(.63
 
2.91
   
190,571
   
1.20
   
6.05
   
14
 
 
(c)
Ratios do not reflect the effect of dividend payments to Auction Rate Preferred shareholders, where applicable; Net Investment Income (Loss) ratios reflect income earned and expenses incurred on assets attributable to ARPS and/or VRDP Shares, where applicable.
(d)
Ratios do not reflect the effect of custodian fee credits earned on the Fund’s net cash on deposit with the custodian bank, where applicable.
(e)
The expense ratios reflect, among other things, all interest expense and other costs related to VRDP Shares and/or the interest expense deemed to have been paid by the Fund on the floating rate certificates issued by the special purpose trusts for the self-deposited inverse floaters held by the Fund, where applicable, both as described in Footnote 1 – General Information and Significant Accounting Policies, Variable Rate Demand Preferred Shares and Inverse Floating Rate Securities, respectively as follows:
 
Insured California Premium Income (NPC)
       
Year Ended 2/28–2/29:
       
2012(g)
   
.73
%*
2011
   
.60
 
2010
   
 
2009(f)
   
Year Ended 8/31:
       
2008
   
 
2007
   
.06
 
2006
   
 
         
Insured California Premium Income 2 (NCL)
       
Year Ended 2/28–2/29:
       
2012(g)
   
.62
2011
   
.17
 
2010
   
.09
 
2009(f)
   
.29
Year Ended 8/31:
       
2008
   
.02
 
2007
   
.06
 
2006
   
 
 
(f)
For the six months ended February 28, 2009.
(g)
For the six months ended August 31, 2011.
*
Annualized.
**
Rounds to less than $.01 per share.
 
See accompanying notes to financial statements.
 
Nuveen Investments
 
79

 
 

 
 
   
Financial
   
Highlights (Unaudited) (continued)
     
   Selected data for a Common share outstanding throughout each period:
 
           
Investment Operations
   
Less Distributions
                   
     
Beginning
Common
Share
Net Asset
Value
   
Net
Investment
Income
(Loss)
 
 
Net
Realized/
Unrealized
Gain (Loss)
 
 
Distributions
from Net
Investment
Income to
Auction Rate
Preferred
Shareholders
(a)
 
Distributions
from
Capital
Gains to
Auction Rate
Preferred
Shareholders
(a)  
Total
   
 
Net Investment
Income to
Common
Share- holders
   
Capital
Gains to
Common
Share-
holders
   
Total
   
Discount
from
Common
Shares
Repurchased
and
Retired
   
Ending
Common
Share
Net Asset
Value
     
Ending
Market
Value
 
California Premium Income (NCU)
                                                             
Year Ended 2/28–2/29:
                                                                   
2012(g)
 
$
12.96
 
$
.42
 
$
1.11
 
$
 
$
 
$
1.53
 
$
(.44
)
$
 
$
(.44
)
$
 
$
14.05
 
$
12.94
 
2011
   
13.71
   
.92
   
(.79
)
 
(.02
)
 
   
.11
   
(.86
)
 
   
(.86
)
 
**   
12.96
   
12.28
 
2010
   
12.37
   
.95
   
1.13
   
(.03
)
 
   
2.05
   
(.72
)
 
   
(.72
)
 
.01
   
13.71
   
12.11
 
2009(f)
   
13.67
   
.43
   
(1.29
)
 
(.10
)
 
**   
(.96
)
 
(.33
)
 
(.01
)
 
(.34
)
 
**   
12.37
   
10.06
 
Year Ended 8/31:
                                                                   
2008
   
14.06
   
.92
   
(.43
)
 
(.24
)
 
   
.25
   
(.64
)
 
   
(.64
)
 
   
13.67
   
12.58
 
2007
   
14.63
   
.90
   
(.52
)
 
(.24
)
 
(.01
)
 
.13
   
(.67
)
 
(.03
)
 
(.70
)
 
   
14.06
   
13.03
 
2006
   
15.03
   
.89
   
(.30
)
 
(.21
)
 
   
.38
   
(.77
)
 
(.01
)
 
(.78
)
 
   
14.63
   
14.01
 
                                                                           
California Dividend Advantage (NAC)
                                                             
Year Ended 2/28–2/29:
                                                                   
2012(g)
   
12.68
   
.49
   
1.10
   
(.01
)
 
   
1.58
   
(.45
)
 
   
(.45
)
 
   
13.81
   
13.41
 
2011
   
13.88
   
.98
   
(1.27
)
 
(.02
)
 
   
(.31
)
 
(.89
)
 
   
(.89
)
 
   
12.68
   
12.20
 
2010
   
12.10
   
1.01
   
1.63
   
(.03
)
 
(.02
)
 
2.59
   
(.81
)
 
   
(.81
)
 
   
13.88
   
12.60
 
2009(f)
   
14.43
   
.49
   
(2.07
)
 
(.09
)
 
(.02
)
 
(1.69
)
 
(.38
)
 
(.26
)
 
(.64
)
 
   
12.10
   
10.82
 
Year Ended 8/31:
                                                                   
2008
   
14.93
   
1.02
   
(.50
)
 
(.23
)
 
(.01
)
 
.28
   
(.74
)
 
(.04
)
 
(.78
)
 
   
14.43
   
13.44
 
2007
   
15.59
   
1.00
   
(.56
)
 
(.24
)
 
(.01
)
 
.19
   
(.80
)
 
(.05
)
 
(.85
)
 
   
14.93
   
14.34
 
2006
   
15.98
   
1.01
   
(.25
)
 
(.21
)
 
   
.55
   
(.91
)
 
(.03
)
 
(.94
)
 
   
15.59
   
15.97
 
 
(a)
The amounts shown are based on Common share equivalents.
(b)
Total Return Based 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. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending market price. The actual reinvestment for the last dividend declared in the period may take place over several days, and in some instances may not be based on the market price, so the actual reinvestment price may be different from the price used in the calculation. Total returns are not annualized.
 
Total Return Based 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. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending net asset value. The actual reinvest price for the last dividend declared in the period may often be based on the Fund’s market price (and not its net asset value), and therefore may be different from the price used in the calculation. Total returns are not annualized.
 
80
 
Nuveen Investments

 
 

 

     
 
         
Ratios/Supplemental Data
 
 Total Returns           
  Ratios to Average Net Assets
Applicable to Common Shares
Before Reimbursement(c) 
   
Ratios to Average Net Assets
Applicable to Common Shares
After Reimbursement(c)(d)
     
     
Based
on
Market
Value
(b)
 
Based
on
Common
Share Net
Asset
Value
(b)
 
Ending
Net
Assets
Applicable
to Common
Shares (000)
 
 
Expenses
(e)
 
 
Net
Investment Income (Loss)
 
 
Expenses
(e)
 
 
Net
Investment
Income (Loss)
 
 
Portfolio
Turnover
Rate
 
                                                   
                                                   
     
9.05
%
 
11.96
%
$
80,499
   
2.38
%*
 
6.17
%*
 
N/A
   
N/A
   
7
%
     
8.34
   
.63
   
74,275
   
1.69
   
6.66
   
N/A
   
N/A
   
5
 
     
28.13
   
17.06
   
78,581
   
1.30
   
7.18
   
N/A
   
N/A
   
10
 
     
(17.22
)
 
(6.92
)
 
71,260
   
1.57
 
7.06
 
N/A
   
N/A
   
14
 
                                                   
     
1.51
   
1.81
   
78,966
   
1.34
   
6.56
   
N/A
   
N/A
   
5
 
     
(2.21
)
 
.82
   
81,200
   
1.29
   
6.14
   
N/A
   
N/A
   
11
 
     
3.14
   
2.72
   
84,467
   
1.23
   
6.09
   
N/A
   
N/A
   
20
 
                                                   
                                                   
     
13.86
   
12.66
   
324,204
   
1.36
 
7.35
 
N/A
   
N/A
   
7
 
     
3.54
   
(2.57
)
 
297,629
   
1.18
   
7.18
   
N/A
   
N/A
   
20
 
     
24.62
   
21.97
   
325,791
   
1.21
   
7.63
   
1.18
%
 
7.66
%
 
4
 
     
(14.14
)
 
(11.45
)
 
284,221
   
1.31
 
7.92
 
1.24
 
7.99
 
14
 
                                                   
     
(.84
)
 
1.85
   
338,732
   
1.26
   
6.77
   
1.11
   
6.92
   
19
 
     
(5.19
)
 
1.16
   
350,523
   
1.17
   
6.24
   
.95
   
6.46
   
20
 
     
5.47
   
3.63
   
365,516
   
1.13
   
6.22
   
.84
   
6.50
   
13
 
 
(c)
Ratios do not reflect the effect of dividend payments to Auction Rate Preferred shareholders, where applicable; Net Investment Income (Loss) ratios reflect income earned and expenses incurred on assets attributable to ARPS, MTP Shares and/or VRDP Shares, where applicable.
(d)
After expense reimbursement from the Adviser, where applicable. Ratios do not reflect the effect of custodian fee credits earned on the Fund’s net cash on deposit with the custodian bank, where applicable. As of July 31, 2009, the Adviser is no longer reimbursing California Dividend Advantage (NAC) for any fees or expenses.
(e)
The expense ratios reflect, among other things, all interest expense and other costs related to VRDP Shares, MTP Shares and/or the interest expense deemed to have been paid by the Fund on the floating rate certificates issued by the special purpose trusts for the self-deposited inverse floaters held by the Fund, where applicable, each as described in Footnote 1 – General Information and Significant Accounting Policies, Variable Rate Demand Preferred Shares, MuniFund Term Preferred Shares and Inverse
 
Floating Rate Securities, respectively as follows:
 
California Premium Income (NCU)
       
Year Ended 2/28–2/29:
       
2012(g)
   
1.18
%*
2011
   
.55
 
2010
   
.06
 
2009(f)
   
.20
Year Ended 8/31:
       
2008
   
.11
 
2007
   
.08
 
2006
   
 
         
California Dividend Advantage (NAC)
       
Year Ended 2/28–2/29:
       
2012(g)
   
.28
2011
   
.06
 
2010
   
.08
 
2009(f)
   
.14
Year Ended 8/31:
       
2008
   
.11
 
2007
   
.05
 
2006
   
 
 
(f)
For the six months ended February 28, 2009.
(g)
For the six months ended August 31, 2011.
*
Annualized.
**
Rounds to less than $.01 per share.
N/A
Fund does not have a contractual reimbursement agreement with the Adviser.
 
See accompanying notes to financial statements.

Nuveen Investments
 
81

 
 

 
 
   
Financial
   
Highlights (Unaudited) (continued)
     
   Selected data for a Common share outstanding throughout each period:

     
 
   
Investment Operations
        Less Distributions                    
     
Beginning
Common
Share
Net Asset
Value
   
Net
Investment
Income
(Loss)
 
 
Net
Realized/
Unrealized
Gain (Loss)
 
 
Distributions
from Net
Investment
Income to
Auction Rate
Preferred
Shareholders
(a)
 
Distributions
from
Capital
Gains to
Auction Rate
Preferred
Shareholders
(a)  
Total
   
Net Investment
Income to
Common
Share- holders
   
Capital
Gains to
Common
Share-
holders
   
Total
   
Discount
from
Common
Shares
Repurchased
and
Retired
   
Ending
Common
Share
Net Asset
Value
     
Ending
Market
Value
 
California Dividend Advantage 2 (NVX)
                                                       
Year Ended 2/28–2/29:
                                                             
2012(g)
 
$
13.47
 
$
.46
 
$
.95
 
$
** 
$
 
$
1.41
 
$
(.48
)
$
 
$
(.48
)
$
 
$
14.40
 
$
13.89
 
2011
   
14.49
   
1.03
   
(1.07
)
 
(.02
)
 
   
(.06
)
 
(.96
)
 
   
(.96
)
 
   
13.47
   
12.83
 
2010
   
12.91
   
1.07
   
1.43
   
(.04
)
 
   
2.46
   
(.88
)
 
   
(.88
)
 
**   
14.49
   
13.56
 
2009(f)
   
14.39
   
.51
   
(1.47
)
 
(.11
)
 
(.01
)
 
(1.08
)
 
(.36
)
 
(.04
)
 
(.40
)
 
**   
12.91
   
10.51
 
Year Ended 8/31:
                                                                   
2008
   
14.69
   
1.01
   
(.37
)
 
(.25
)
 
   
.39
   
(.69
)
 
   
(.69
)
 
   
14.39
   
12.67
 
2007
   
15.36
   
.96
   
(.62
)
 
(.25
)
 
   
.09
   
(.76
)
 
   
(.76
)
 
   
14.69
   
13.73
 
2006
   
15.63
   
.97
   
(.19
)
 
(.21
)
 
   
.57
   
(.84
)
 
   
(.84
)
 
   
15.36
   
14.95
 
                                                                           
California Dividend Advantage 3 (NZH)
                                                       
Year Ended 2/28–2/29:
                                                             
2012(g)
   
12.13
   
.41
   
.86
   
**   
   
1.27
   
(.45
)
 
   
(.45
)
 
   
12.95
   
12.49
 
2011
   
13.18
   
.88
   
(1.02
)
 
(.01
)
 
   
(.15
)
 
(.90
)
 
   
(.90
)
 
   
12.13
   
11.67
 
2010
   
11.53
   
.98
   
1.53
   
(.03
)
 
   
2.48
   
(.83
)
 
   
(.83
)
 
   
13.18
   
12.67
 
2009(f)
   
13.62
   
.50
   
(2.13
)
 
(.09
)
 
   
(1.72
)
 
(.37
)
 
   
(.37
)
 
**   
11.53
   
10.23
 
Year Ended 8/31:
                                                                   
2008
   
14.25
   
1.03
   
(.70
)
 
(.25
)
 
   
.08
   
(.71
)
 
   
(.71
)
 
   
13.62
   
12.87
 
2007
   
15.03
   
.98
   
(.73
)
 
(.27
)
 
   
(.02
)
 
(.76
)
 
   
(.76
)
 
   
14.25
   
13.52
 
2006
   
15.31
   
.97
   
(.20
)
 
(.22
)
 
   
.55
   
(.83
)
 
   
(.83
)
 
   
15.03
   
14.84
 
 
(a)
The amounts shown are based on Common share equivalents.
(b)
Total Return Based 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. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending market price. The actual reinvestment for the last dividend declared in the period may take place over several days, and in some instances may not be based on the market price, so the actual reinvestment price may be different from the price used in the calculation. Total returns are not annualized.
 
Total Return Based 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. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending net asset value. The actual reinvest price for the last dividend declared in the period may often be based on the Fund’s market price (and not its net asset value), and therefore may be different from the price used in the calculation. Total returns are not annualized.
 
82
 
Nuveen Investments

 
 

 
 
                 
Ratios/Supplemental Data
 
  Total Returns          
  Ratios to Average Net Assets
Applicable to Common Shares
Before Reimbursement(c)
   
Ratios to Average Net Assets
Applicable to Common Shares
After Reimbursement(c)(d)
       
     
Based
on
Market
Value
(b)
 
Based
on
Common
Share Net
Asset
Value
(b)
 
Ending
Net
Assets
Applicable
to Common
Shares (000
)
 
Expenses
(e)
 
Net
Investment Income (Loss)
 
 
Expenses
(e)
 
 
Net
Investment
Income (Loss
)
 
Portfolio
Turnover
Rate
 
                                                   
                                                   
     
12.16
%
 
10.65
%
$
212,375
   
2.31
%*
 
6.52
%*
 
2.30
%*
 
6.53
%*
 
4
%
     
1.37
   
(.64
)
 
198,675
   
1.36
   
7.10
   
1.28
   
7.19
   
13
 
     
38.29
   
19.52
   
213,687
   
1.20
   
7.58
   
1.04
   
7.74
   
4
 
     
(13.83
)
 
(7.40
)
 
190,824
   
1.37
 
7.85
 
1.14
 
8.08
 
7
 
                                                   
     
(2.80
)
 
2.76
   
212,890
   
1.25
   
6.56
   
.99
   
6.83
   
20
 
     
(3.39
)
 
.46
   
217,332
   
1.25
   
5.97
   
.91
   
6.31
   
21
 
     
4.19
   
3.82
   
227,160
   
1.16
   
5.94
   
.74
   
6.35
   
9
 
                                                   
                                                   
     
11.04
   
10.65
   
312,425
   
2.50
 
6.51
   
2.42
 
6.59
   
7
 
     
(1.21
)
 
(1.40
)
 
292,563
   
2.07
   
6.61
   
1.94
   
6.74
   
16
 
     
32.93
   
22.17
   
317,860
   
1.36
   
7.68
   
1.16
   
7.88
   
6
 
     
(17.58
)
 
(12.54
)
 
278,056
   
1.39
 
8.50
 
1.13
 
8.75
 
9
 
                                                   
     
.46
   
.60
   
328,659
   
1.21
   
6.96
   
.90
   
7.27
   
23
 
     
(4.12
)
 
(.32
)
 
343,806
   
1.22
   
6.16
   
.83
   
6.54
   
23
 
     
8.50
   
3.81
   
362,473
   
1.16
   
6.08
   
.71
   
6.53
   
10
 
 
(c)
Ratios do not reflect the effect of dividend payments to Auction Rate Preferred shareholders, where applicable; Net Investment Income (Loss) ratios reflect income earned and expenses incurred on assets attributable to ARPS and/or MTP Shares, where applicable.
(d)
After expense reimbursement from the Adviser, where applicable. Ratios do not reflect the effect of custodian fee credits earned on the Fund’s net cash on deposit with the custodian bank, where applicable. As of March 31, 2011, the Adviser is no longer reimbursing California Dividend Advantage 2 (NVX) for any fees or expenses.
(e)
The expense ratios reflect, among other things, all interest expense and other costs related to MTP Shares and/or the interest expense deemed to have been paid by the Fund on the floating rate certificates issued by the special purpose trusts for the self-deposited inverse floaters held by the Fund, where applicable, both as described in Footnote 1 – General Information and Significant Accounting Polices, MuniFund Term Preferred Shares and Inverse Floating Rate Securities, respectively as follows:
 
California Dividend Advantage 2 (NVX)
       
Year Ended 2/28–2/29:
       
2012(g)
   
1.24
%*
2011
   
.26
 
2010
   
.04
 
2009(f)
   
.05
Year Ended 8/31:
       
2008
   
.09
 
2007
   
.08
 
2006
   
 
         
California Dividend Advantage 3 (NZH)
       
Year Ended 2/28–2/29:
       
2012(g)
   
1.38
2011
   
.94
 
2010
   
.19
 
2009(f)
   
.12
Year Ended 8/31:
       
2008
   
.02
 
2007
   
.06
 
2006
   
 
 
(f)
For the six months ended February 28, 2009.
(g)
For the six months ended August 31, 2011.
*
Annualized.
**
Rounds to less than $.01 per share.
   
   
 
See accompanying notes to financial statements.
 
Nuveen Investments
 
83

 
 

 
 
   
Financial
   
Highlights (Unaudited) (continued)
     
   Selected data for a Common share outstanding throughout each period:
 
           
Investment Operations
   
Less Distributions
                   
     
Beginning
Common
Share
Net Asset
Value
   
Net
Investment
Income
(Loss)
 
 
Net
Realized/
Unrealized
Gain (Loss)
 
 
Distributions
from Net
Investment
Income to
Auction Rate
Preferred
Shareholders
(a)
 
Distributions
from
Capital
Gains to
Auction Rate
Preferred
Shareholders
(a)  
Total
   
Net Investment
Income to
Common
Share- holders
   
Capital
Gains to
Common
Share-
holders
   
Total
   
Discount
from
Common
Shares
Repurchased
and
Retired
   
Ending
Common
Share
Net Asset
Value
     
Ending
Market
Value
 
Insured California Dividend Advantage (NKL)
                                                       
Year Ended 2/28–2/29:
                                                                   
2012(g)
 
$
13.70
 
$
.51
 
$
1.04
 
$
(.01
)
$
 
$
1.54
 
$
(.47
)
$
 
$
(.47
)
$
 
$
14.77
 
$
14.54
 
2011
   
14.71
   
1.04
   
(1.09
)
 
(.03
)
 
   
(.08
)
 
(.93
)
 
   
(.93
)
 
   
13.70
   
13.02
 
2010
   
13.52
   
1.06
   
1.01
   
(.04
)
 
   
2.03
   
(.84
)
 
   
(.84
)
 
**   
14.71
   
13.66
 
2009(f)
   
14.61
   
.50
   
(1.07
)
 
(.10
)
 
(.01
)
 
(.68
)
 
(.37
)
 
(.04
)
 
(.41
)
 
**   
13.52
   
11.16
 
Year Ended 8/31:
                                                                   
2008
   
14.91
   
1.03
   
(.33
)
 
(.25
)
 
(.01
)
 
.44
   
(.72
)
 
(.02
)
 
(.74
)
 
   
14.61
   
13.50
 
2007
   
15.50
   
1.01
   
(.57
)
 
(.26
)
 
**   
.18
   
(.77
)
 
**   
(.77
)
 
   
14.91
   
14.24
 
2006
   
15.81
   
1.01
   
(.25
)
 
(.22
)
 
   
.54
   
(.85
)
 
   
(.85
)
 
   
15.50
   
15.70
 
Insured California Tax-Free Advantage (NKX)
                                                       
Year Ended 2/28–2/29:
                                                                   
2012(g)
   
12.82
   
.43
   
1.09
   
   
   
1.52
   
(.40
)
 
   
(.40
)
 
   
13.94
   
12.88
 
2011
   
14.03
   
.81
   
(1.22
)
 
   
   
(.41
)
 
(.80
)
 
   
(.80
)
 
   
12.82
   
11.78
 
2010
   
12.85
   
.85
   
1.09
   
   
   
1.94
   
(.76
)
 
   
(.76
)
 
   
14.03
   
12.87
 
2009(f)
   
14.19
   
.39
   
(1.32
)
 
**   
(.01
)
 
(.94
)
 
(.35
)
 
(.05
)
 
(.40
)
 
   
12.85
   
11.75
 
Year Ended 8/31:
                                                                   
2008
   
14.47
   
.97
   
(.30
)
 
(.24
)
 
   
.43
   
(.71
)
 
   
(.71
)
 
   
14.19
   
13.78
 
2007
   
14.92
   
.96
   
(.46
)
 
(.24
)
 
   
.26
   
(.71
)
 
   
(.71
)
 
   
14.47
   
14.47
 
2006
   
15.17
   
.95
   
(.25
)
 
(.21
)
 
   
.49
   
(.74
)
 
   
(.74
)
 
   
14.92
   
14.27
 
 
(a)
The amounts shown are based on Common share equivalents.
(b)
Total Return Based 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. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending market price. The actual reinvestment for the last dividend declared in the period may take place over several days, and in some instances may not be based on the market price, so the actual reinvestment price may be different from the price used in the calculation. Total returns are not annualized.
 
Total Return Based 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. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending net asset value. The actual reinvest price for the last dividend declared in the period may often be based on the Fund’s market price (and not its net asset value), and therefore may be different from the price used in the calculation. Total returns are not annualized.
 
84
 
Nuveen Investments

 
 

 
 
     
 
            Ratios/Supplemental Data  
  Total Returns
 
 
 
 
  Ratios to Average Net Assets
Applicable to Common Shares
Before Reimbursement(c)
 
  Ratios to Average Net Assets
Applicable to Common Shares
After Reimbursement(c)(d)
       
     
Based
on
Market
Value
(b)
 
Based
on
Common
Share Net
Asset
Value
(b)
 
Ending
Net
Assets
Applicable
to Common
Shares (000)
 
 
Expenses
(e)
 
Net
Investment
Income (Loss)
 
 
 
Expenses
(e)
 
 
Net
Investment
Income (Loss)
 
 
Portfolio
Turnover
Rate
 
                                                   
                                                   
     
15.54
%
 
11.44
%
$
225,316
   
1.33
%*
 
7.12
%*
 
1.24
%*
 
7.21
%*
 
8
%
     
1.81
   
(.75
)
 
208,950
   
1.13
   
6.94
   
.97
   
7.10
   
7
 
     
30.55
   
15.42
   
224,301
   
1.19
   
7.21
   
.95
   
7.45
   
1
 
     
(14.22
)
 
(4.50
)
 
206,467
   
1.32
 
7.36
 
1.01
 
7.67
 
3
 
                                                   
     
(.03
)
 
2.98
   
223,356
   
1.19
   
6.52
   
.84
   
6.87
   
6
 
     
(4.64
)
 
1.13
   
227,923
   
1.21
   
6.12
   
.79
   
6.54
   
12
 
     
10.72
   
3.62
   
236,525
   
1.17
   
6.12
   
.71
   
6.58
   
3
 
                                                   
                                                   
     
12.95
   
12.05
   
82,059
   
1.82
 
6.36
   
N/A
   
N/A
   
1
 
     
(2.71
)
 
(3.18
)
 
75,493
   
2.06
   
5.74
   
1.97
   
5.83
   
8
 
     
16.39
   
15.49
   
82,579
   
1.68
   
6.11
   
1.47
   
6.32
   
*** 
     
(11.55
)
 
(6.42
)
 
75,661
   
2.57
 
5.89
 
2.27
 
6.19
 
3
 
                                                   
     
.12
   
2.97
   
83,531
   
1.33
   
6.28
   
.94
   
6.67
   
28
 
     
6.35
   
1.69
   
85,144
   
1.27
   
5.95
   
.79
   
6.43
   
15
 
     
4.56
   
3.43
   
87,77
   
1.22
   
5.97
   
.74
   
6.45
   
4
 
 
(c)
Ratios do not reflect the effect of dividend payments to Auction Rate Preferred shareholders, where applicable; Net Investment Income (Loss) ratios reflect income earned and expenses incurred on assets attributable to ARPS and/or VRDP Shares, where applicable.
(d)
After expense reimbursement from the Adviser, where applicable. Ratios do not reflect the effect of custodian fee credits earned on the Fund’s net cash on deposit with the custodian bank, where applicable. As of November 30, 2010, the Adviser is no longer reimbursing Insured California Tax-Free Advantage (NKX) for any fees or expenses.
(e)
The expense ratios reflect, among other things, all interest expense and other costs related to VRDP Shares and/or the interest expense deemed to have been paid by the Fund on the floating rate certificates issued by the special purpose trusts for the self-deposited inverse floaters held by the Fund, where applicable, both as described in Footnote 1 – General Information and Significant Accounting Policies, Variable Rate Demand Preferred Shares and Inverse Floating Rate Securities, respectively as follows:
 
         
Insured California Dividend Advantage (NKL)
       
Year Ended 2/28–2/29:
       
2012(g)
   
.26
%*
2011
   
.02
 
2010
   
.03
 
2009(f)
   
.09
Year Ended 8/31:
       
2008
   
 
2007
   
.05
 
2006
   
 
         
Insured California Tax-Free Advantage (NKX)
       
Year Ended 2/28–2/29:
       
2012(g)
   
.72
2011
   
.92
 
2010
   
.57
 
2009(f)
   
1.03
Year Ended 8/31:
       
2008
   
.08
 
2007
   
.06
 
2006
   
 
 
(f)
For the six months ended February 28, 2009.
(g)
For the six months ended August 31, 2011.
*
Annualized.
**
Rounds to less than $.01 per share.
***
Calculates to less than 1%.
N/A
Fund does not have a contractual reimbursement agreement with the Adviser.
 
   
See accompanying notes to financial statements.
 
  Nuveen Investments
 
85

 
 

 
 
   
Financial
   
Highlights (Unaudited) (continued)
 
     
ARPS at the End of Period
      VRDP Shares at the End of Period  
     
Aggregate
Amount
Outstanding
(000
)
 
 
Liquidation
Value
Per Share
   
Asset
Coverage
Per Share
   
Aggregate
Amount
Outstanding
(000
)
 
Liquidation
Value
Per Share
   
Asset
Coverage
Per Share
 
Insured California Premium Income (NPC)
                         
Year Ended 2/28–2/29:
                               
2012(g)
 
$
 
$
 
$
 
$
42,700
 
$
100,000
 
$
325,699
 
2011
   
   
   
   
42,700
   
100,000
   
305,684
 
2010
   
45,000
   
25,000
   
77,746
   
   
   
 
2009(f)
   
45,000
   
25,000
   
75,295
   
   
   
 
Year Ended 8/31:
                                     
2008
   
45,000
   
25,000
   
78,590
   
   
   
 
2007
   
45,000
   
25,000
   
78,987
   
   
   
 
2006
   
45,000
   
25,000
   
80,878
   
   
   
 
                                       
Insured California Premium Income 2 (NCL)
                         
Year Ended 2/28–2/29:
                               
2012(g)
   
   
   
   
74,000
   
100,000
   
344,067
 
2011
   
   
   
   
74,000
   
100,000
   
323,458
 
2010
   
79,825
   
25,000
   
80,487
   
   
   
 
2009(f)
   
79,825
   
25,000
   
75,996
   
   
   
 
Year Ended 8/31:
                                     
2008
   
87,400
   
25,000
   
76,411
   
   
   
 
2007
   
95,000
   
25,000
   
73,511
   
   
   
 
2006
   
95,000
   
25,000
   
75,150
   
   
   
 

86
 
Nuveen Investments

 
 

 
 
 
   
ARPS at the End of Period
      VRDP Shares at the End of Period       MTP Shares at the End of Period (h)  
 
   
Aggregate
Amount
Outstanding
(000)
   
Liquidation
Value
Per Share
   
Asset
Coverage
Per Share
 
 
Aggregate
Amount
Outstanding
(000
 
)
 
Liquidation
Value
Per Share
   
Asset
Coverage
Per Share
 
 
Aggregate
Amount
Outstanding(000
)
 
Liquidation
Value
Per Share
     
Asset
Coverage
Per Share
 
California Premium Income (NCU)
                                           
Year Ended 2/28–2/29:
                                                 
2012(g)
 
$
 
$
 
$
 
$
 
$
 
$
 
$
35,250
 
$
10.00
 
$
32.84
 
2011
   
   
   
   
   
   
   
35,250
   
10.00
   
31.07
 
2010
   
34,375
   
25,000
   
82,150
   
   
   
   
   
   
 
2009(f)
   
40,875
   
25,000
   
68,584
   
   
   
   
   
   
 
Year Ended 8/31:
                                                       
2008
   
43,000
   
25,000
   
70,910
   
   
   
   
   
   
 
2007
   
43,000
   
25,000
   
72,209
   
   
   
   
   
   
 
2006
   
43,000
   
25,000
   
74,109
   
   
   
   
   
   
 
                                                         
California Dividend Advantage (NAC)
                                           
Year Ended 2/28–2/29:
                                                 
2012(g)
   
   
   
   
136,200,000
   
100,000
   
338,035
   
   
   
 
2011
   
135,525
   
25,000
   
79,903
   
   
   
   
   
   
 
2010
   
135,525
   
25,000
   
85,098
   
   
   
   
   
   
 
2009(f)
   
135,525
   
25,000
   
77,430
   
   
   
   
   
   
 
Year Ended 8/31:
                                                       
2008
   
135,525
   
25,000
   
87,485
   
   
   
   
   
   
 
2007
   
175,000
   
25,000
   
75,075
   
   
   
   
   
   
 
2006
   
175,000
   
25,000
   
77,217
   
   
   
   
   
   
 
 
(f)
For the six months ended February 28, 2009.
(g)
For the six months ended August 31, 2011.
(h)
The Ending and Average Market Value Per Share for each Series of the Fund’s MTP Shares were as follows:
 
   
Series
   
Ending
Market Value
Per Share
   
Average
Market Value
Per Share
 
California Premium Income (NCU)
                 
Year Ended 2/28–2/29:
                 
2012(g)
 
2015
    $ 9.85     $ 9.72  
2011
 
2015
      9.63    
9.74
2010
                 
2009(f)
                 
Year Ended 8/31
                       
2008
                 
2007
                 
2006
                 
                         
California Dividend Advantage (NAC)
                       
Year Ended 2/28–2/29:
                       
2012(g)
                 
2011
                 
2010
                 
2009(f)
                 
Year Ended 8/31:
                       
2008
                 
2007
                 
2006
                 
 
^
For the period September 22, 2010 (first issuance date of shares) through February 28, 2011.
 
See accompanying notes to financial statements.
 
Nuveen Investments
 
87

 
 

 
 
   
Financial
   
Highlights (Unaudited) (continued)
 
      ARPS at the End of Period    
MTP Shares at the End of Period (h)
   
ARPS and
MTP Shares at
the End of Period
 
     
Aggregate
Amount
Outstanding
(000)
   
Liquidation
Value
Per Share
   
Asset
Coverage
Per Share
     
Aggregate
Amount
Outstanding
(000)
   
Liquidation
Value
Per Share
   
Asset
Coverage
Per Share
   
Asset Coverage
Per $1
Liquidation
Preference
 
California Dividend Advantage 2 (NVX)
                                 
Year Ended 2/28–2/29:
                                       
2012(g)
  $     $     $     $ 97,846     $ 10.00     $ 31.70     $  
2011
    39,950       25,000       77,310       55,000       10.00       30.92       3.09  
2010
    93,775       25,000       81,968                          
2009(f)
    110,000       25,000       68,369                          
Year Ended 8/31:
                                                       
2008
    110,000       25,000       73,384                          
2007
    110,000       25,000       74,394                          
2006
    110,000       25,000       76,627                          
                                                         
California Dividend Advantage 3 (NZH)
                                         
Year Ended 2/28–2/29:
                                                 
2012(g)
                      159,545       10.00       29.58        
2011
    69,500       25,000       71,960       86,250       10.00       28.78       2.88  
2010
    69,500       25,000       76,021       86,250       10.00       30.41       3.04  
2009(f)
    154,075       25,000       70,117                          
Year Ended 8/31:
                                                       
2008
    159,925       25,000       76,377                          
2007
    187,000       25,000       70,963                          
2006
    187,000       25,000       73,459                          
 
(f)
For the six months ended February 28, 2009.
(g)
For the six months ended August 31, 2011.
(h)
The Ending and Average Market Value Per Share for each Series of the Fund’s MTP Shares were as follows:
 
   
Series
   
Ending
Market Value
Per Share
   
Average
Market Value
Per Share
   
Series
   
Ending
Market Value
Per Share
   
Average
Market Value
Per Share
   
Series
   
Ending
Market Value
Per Share
   
Average
Market Value
Per Share
 
California Dividend Advantage 2 (NVX)
                                     
Year Ended 2/28–2/29:
                                           
2012(g)
        $     $       2014     $ 10.09     $ 10.09 Ω     2015     $ 9.96     $ 9.82  
2011
                                        2015       9.82    
9.72
^^ 
2010
                                                     
2009(f)
                                                     
Year Ended 8/31:
                                                                       
2008
                                                     
2007
                                                       
2006
                                                     
                                                                         
California Dividend Advantage 3 (NZH)
                                                 
Year Ended 2/28–2/29:
                                                       
2012(g)
    2014       10.21       10.10 ΩΩ     2014-1       10.04       10.13 ΩΩΩ     2015       10.17       10.09  
2011
                                        2015       10.06       10.14  
2010
                                        2015       10.11    
10.09
2009(f)
                                                     
Year Ended 8/31:
                                                                       
2008
                                                     
2007
                                                     
2006
                                                     
 
^
For the period December 21, 2009 (first issuance date of shares) through February 28, 2010.
^^
For the period October 22, 2010 (first issuance date of shares) through February 28, 2011.
Ω
For the period March 9, 2011 (first issuance date of shares) through August 31, 2011.
ΩΩ
For the period April 11, 2011 (first issuance date of shares) through August 31, 2011.
ΩΩΩ
For the period June 6, 2011 (first issuance date of shares) through August 31, 2011.
 
88
 
Nuveen Investments

 
 

 
 
      ARPS at the End of Period    
VRDP Shares at the End of Period
 
         Aggregate
Amount
Outstanding
(000)
   
Liquidation
Value
Per Share
   
Asset
Coverage
Per Share
     
Aggregate
Amount
Outstanding
(000)
   
Liquidation
Value
Per Share
   
Asset
Coverage
Per Share
 
Insured California Dividend Advantage (NKL)
                                 
Year Ended 2/28–2/29:
                                       
2012(g)
  $     $     $     $ 104,400     $ 100,000     $ 315,820  
2011
    103,750       25,000       75,349                    
2010
    108,250       25,000       76,802                    
2009(f)
    108,250       25,000       72,683                    
Year Ended 8/31:
                                               
2008
    118,000       25,000       72,321                    
2007
    118,000       25,000       73,289                    
2006
    118,000       25,000       75,111                    
                                                 
Insured California Tax-Free Advantage (NKX)
                                         
Year Ended 2/28–2/29:
                                               
2012(g)
                      35,500       100,000       331,152  
2011
                      35,500       100,000       312,655  
2010
                      35,500       100,000       332,616  
2009(f)
                      35,500       100,000       313,131  
Year Ended 8/31:
                                               
2008
                      35,500       100,000       335,299  
2007
    45,000       25,000       72,302                    
2006
    45,000       25,000       73,764                    
 
See accompanying notes to financial statements.
 
Nuveen Investments
 
89

 
 

 
 
   
Notes to
   
Financial Statements (Unaudited)
 
1. General Information and Significant Accounting Policies
 
General Information
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) (each a “Fund” and collectively, the “Funds”). 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 (“NYSE”) 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 NYSE Amex. The Funds are registered under the Investment Company Act of 1940, as amended, as closed-end registered 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 portfolio of municipal obligations issued by state and local government authorities within the state of California or certain U.S. territories.
 
Significant Accounting Policies
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 (“U.S. GAAP”).
 
Investment Valuation
Prices of municipal bonds and forward swap contracts are provided by a pricing service approved by the Funds’ Board of Directors/Trustees. These securities are generally classified as Level 2 for fair value measurement purposes. When price quotes are not readily available (which is usually the case for municipal bonds) the pricing service establishes a security’s fair value using methods that may include consideration of the following: yields or prices of investments of comparable quality, type of issue, coupon, maturity and rating, market quotes or indications of value from security dealers, evaluations of anticipated cash flows or collateral, general market conditions and other information and analysis, including the obligor’s credit characteristics considered relevant. In pricing certain securities, particularly less liquid and lower quality securities, the pricing service may consider information about a security, its issuer, or market activity, provided by Nuveen Fund Advisors, Inc. (the “Adviser”), a wholly-owned subsidiary of Nuveen Investments, Inc. (“Nuveen”). These securities are generally classified as Level 2 or Level 3 depending on the priority of the significant inputs.
 
Certain securities may not be able to be priced by the pre-established pricing methods as described above. Such securities may be valued by the Funds’ Board of Directors/Trustees or its designee at fair value. These securities generally include, but are not limited to, restricted securities (securities which may not be publicly sold without registration under the Securities Act of 1933, as amended) for which a pricing service is unable to provide a market price; securities whose trading has been formally suspended; debt securities that have gone into default and for which there is no current market quotation; a security whose market price is not available from a pre-established pricing source; a security with respect to which an event has occurred that is likely to materially affect the value of the security after the market has closed but before the calculation of a Fund’s net asset value (as may be the case in non-U.S. markets on which the security is primarily traded) or make it difficult or impossible to obtain a reliable market quotation; and a security whose price, as provided by the pricing service, is not deemed to reflect the security’s fair value. As a general principle, the fair value of a security would appear to be the amount that the owner might reasonably expect to receive for it in a current sale. A variety of factors may be considered in determining the fair value of these securities, which may include consideration of the following: yields or prices of investments of comparable quality, type of issue, coupon, maturity and rating, market quotes or indications of value from security dealers, evaluations of anticipated cash flows or collateral, general market conditions and other information and analysis, including the obligor’s credit characteristics considered relevant. These securities are generally classified as Level 2 or Level 3 depending on the priority of the significant inputs. Regardless of the method employed to value a particular security, all valuations are subject to review by the Funds’ Board of Directors/Trustees or its designee.
 
Refer to Footnote 2 – Fair Value Measurements for further details on the leveling of securities held by the Funds as of the end of the reporting period.
 
90
 
Nuveen Investments
 
 
 

 
Investment Transactions
Investment transactions are recorded on a trade date basis. Realized gains and losses from transactions are determined on the specific identification method, which is the same basis used for federal income tax purposes. Investments purchased on a when-issued/delayed delivery basis may have extended settlement periods. Any investments 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/delayed delivery purchase commitments. At August 31, 2011, California Premium Income (NCU) had outstanding when-issued/delayed delivery purchase commitments of $185,000, respectively. There were no such outstanding purchase commitments in any of the other Funds.
 
Investment Income
Investment income, which reflects the amortization of premiums and includes accretion of discounts for financial reporting purposes, is recorded on an accrual basis. Investment income also reflects paydown gains and losses, if any.
 
Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund intends to distribute substantially all of its 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 that 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.
 
For all open tax years and all major taxing jurisdictions, management of the Funds has concluded that there are no significant uncertain tax positions that would require recognition in the financial statements. Open tax years are those that are open for examination by taxing authorities (i.e., generally the last four tax year ends and the interim tax period since then). Furthermore, management of the Funds is also not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
 
Dividends and Distributions to Common Shareholders
Dividends from net investment income are declared monthly. Net realized capital gains and/or market discount from investment transactions, if any, are distributed to shareholders at least annually. Furthermore, capital gains are distributed only to the extent they exceed available capital loss carryforwards.
 
Distributions to Common shareholders of 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. GAAP.
 
Auction Rate Preferred Shares
Each Fund is authorized to issue Auction Rate Preferred Shares (“ARPS”). As of February 28, 2011, Insured California Premium Income (NPC), Insured California Premium Income 2 (NCL) and California Premium Income (NCU) redeemed all of their outstanding ARPS at liquidation value. As of August 31, 2008, Insured California Tax-Free Advantage (NKX) redeemed all of its outstanding ARPS at liquidation value. During the six months ended August 31, 2011, California Dividend Advantage (NAC), California Dividend Advantage 2 (NVX), California Dividend Advantage 3 (NZH) and Insured California Dividend Advantage (NKL) had issued and outstanding ARPS, $25,000 stated value per share, which approximates market value, as a means of effecting financial leverage. Each Fund’s ARPS were issued in one or more Series. The dividend rate paid by the Funds on each Series was determined every seven days, pursuant to a dutch auction process overseen by the auction agent, and was payable at the end of each rate period.
 
Beginning in February 2008, more shares for sale were submitted in the regularly scheduled auctions for the ARPS issued by the Funds than there were offers to buy. This meant that these auctions “failed to clear,’’ and that many ARPS shareholders who wanted to sell their shares in these auctions were unable to do so. ARPS shareholders unable to sell their shares received distributions at the “maximum rate’’ applicable to failed auctions as calculated in accordance with the pre-established terms of the ARPS. As of August 31, 2011, each Fund redeemed all of their outstanding ARPS, at liquidation value, as follows:

   
Insured
California
Premium
Income
(NPC
 
Insured
California
Premium
Income 2
(NCL
 
California
Premium
Income
(NCU
  California
Dividend
Advantage
(NAC
ARPS redeemed, at liquidation value
  $ 45,000,000     $ 95,000,000     $ 43,000,000     $ 175,000,000  

Nuveen Investments
 
91
 
 
 

 

   
Notes to
   
Financial Statements (Unaudited) (continued)
 
    California
Dividend
Advantage 2
(NVX
  California
Dividend
Advantage 3
(NZH
  Insured
California
Dividend
Advantage
(NKL
  Insured
California
Tax-Free
Advantage
(NKX
ARPS redeemed, at liquidation value
  $ 110,000,000     $ 187,000,000     $ 118,000,000     $ 45,000,000  
 
During the fiscal year ended February 28, 2011, lawsuits pursuing claims made in a demand letter alleging that Insured California Tax-Free Advantage’s (NKX) Board of Trustees breached its fiduciary duties related to the redemption at par of the Fund’s ARPS, had been filed on behalf of shareholders of the Fund, against the Adviser the Nuveen holding company, the majority owner of the holding company, the lone interested trustee, and current and former officers of the Fund. The court has heard the Fund’s motion to dismiss the lawsuits, and has taken the matter under advisement. Nuveen and other named defendants believe these lawsuits to be without merit, and all named parties are defending themselves vigorously against these charges.
 
During the current reporting period, Nuveen Investments, LLC known as Nuveen Securities, LLC, effective April 30, 2011, (“Nuveen Securities”) entered into a settlement with the Financial Industry Regulatory Authority (“FINRA”) with respect to certain allegations regarding Nuveen-sponsored closed-end fund ARPS marketing brochures. As part of this settlement, Nuveen Securities neither admitted to nor denied FINRA’s allegations. Nuveen Securities is the broker-dealer subsidiary of Nuveen.
 
The settlement with FINRA concludes an investigation that followed the widespread failure of auctions for ARPS and other auction rate securities, which generally began in mid-February 2008. In the settlement, FINRA alleged that certain marketing materials provided by Nuveen Securities were false and misleading. Nuveen Securities agreed to a censure and the payment of a $3 million fine.
 
MuniFund Term Preferred Shares
The following Funds have issued and outstanding MuniFund Term Preferred (“MTP”) Shares, with a $10 stated value per share. Proceeds from the issuance of MTP Shares, net of offering expenses, were used to redeem all, or a portion of, each Fund’s outstanding ARPS. Each Fund’s MTP Shares are issued in one or more Series. Dividends, which are recognized as interest expense for financial reporting purposes, are paid monthly at a fixed annual rate, subject to adjustments in certain circumstances. The MTP Shares trade on the NYSE. As of August 31, 2011, the number of MTP Shares outstanding, annual interest rate and the NYSE “ticker” symbol for each Fund’s series of MTP Shares are as follows:
 
   
California Premium Income (NCU)
   
Shares
Outstanding
 
Annual
Interest
Rate
 
NYSE
Ticker
 
Series 2015
   
35,250,000
   
2.00
%
 
NCU Pr C
 

   
California Dividend Advantage 2 (NVX)
 
California Dividend Advantage 3 (NZH)
   
Shares
Outstanding
 
Annual
Interest
Rate
 
NYSE
Ticker
 
Shares
Outstanding
 
Annual
Interest
Rate
 
NYSE
Ticker
 
Series:
                                     
2014
   
42,846,300
   
2.35
%
 
NVX Pr A
   
27,000,000
   
2.35
%
 
NZH Pr A
 
2014-1
   
   
   
   
46,294,500
   
2.25
   
NZH Pr B
 
2015
   
55,000,000
   
2.05
   
NVX Pr C
   
86,250,000
   
2.95
   
NZH Pr C
 
 
Each Fund is obligated to redeem its MTP Shares by the date as specified in its offering document (“Term Redemption Date”), unless earlier redeemed or repurchased by the Fund. MTP Shares are subject to optional and mandatory redemption in certain circumstances. MTP Shares will be subject to redemption at the option of each Fund (“Optional Redemption Date”), subject to a payment of premium for one year following the Optional Redemption Date (“Premium Expiration Date”), and at par thereafter. MTP Shares also will be subject to redemption, at the option of each Fund, at par in the event of certain changes in the credit rating of the MTP Shares. Each Fund may be obligated to redeem certain of the MTP Shares if the Fund fails to maintain certain asset coverage and leverage ratio requirements and such failures are not cured by the applicable cure date. The redemption price per share is equal to the sum of the liquidation value per share plus any accumulated but unpaid dividends. The Term Redemption Date, Optional Redemption Date and Premium Expiration Date for each Fund’s MTP Shares are as follows:
 
92
 
Nuveen Investments
 
 
 

 
 
   
California
Premium
Income
(NCU
)
California
Dividend
Advantage 2
(NVX
)
California
Dividend
Advantage 2
(NVX
)
California
Dividend
Advantage 3
(NZH
)
California
Dividend
Advantage 3
(NZH
)
California
Dividend
Advantage 3
(NZH
)
   
Series 2015
 
Series 2014
 
Series 2015
 
Series 2014
 
Series 2014-1
 
Series 2015
 
Term Redemption Date
  October 1, 2015       April 1, 2014    
November 1, 2015
   
May 1, 2014
   
July 1, 2014
   
January 1, 2015
 
Optional Redemption Date
  October 1, 2011   April 1, 2012    
November 1, 2011
   
May 1, 2012
   
July 1, 2012
   
January 1, 2011
 
Premium Expiration Date
  September 30, 2012    
March 31, 2013
   
October 31, 2012
   
April 30, 2013
   
June 30, 2013
  December 31, 2011  
 
The average liquidation value of MTP Shares outstanding for each Fund during the six months ended August 31, 2011, was as follows:

    California
Premium
Income
(NCU
  California
Dividend
Advantage 2
(NVX
  California
Dividend
Advantage 3
(NZH
Average liquidation value of MTP Shares outstanding
  $ 35,250,000     $ 91,148,793     $ 129,075,019  
 
For financial reporting purposes only, the liquidation value of MTP Shares is recorded as a liability on the Statement of Assets and Liabilities. Unpaid dividends on MTP Shares are recognized as a component of “Interest payable” on the Statement of Assets and Liabilities. Dividends paid on MTP Shares are recognized as a component of “Interest expense and amortization of offering costs” on the Statement of Operations.
 
Net amounts earned by Nuveen as underwriter of each Fund’s MTP Share offering are recorded as reductions of offering costs recognized by the Funds. During the six months ended August 31, 2011, the net amounts earned by Nuveen for each fund were as follows:

    California
Premium
Income
(NCU
 
California
Dividend
Advantage 2
NVX
  California
Dividend
Advantage 3
(NZH
Net amounts earned by Nuveen
  $ 2,021     $ 4,454     $ 1,895  
 
Variable Rate Demand Preferred Shares
The following Funds have issued and outstanding Variable Rate Demand Preferred (“VRDP”) Shares, with a $100,000 liquidation value per share. Insured California Premium Income (NPC), Insured California Premium Income 2 (NCL), California Dividend Advantage (NAC), Insured California Dividend Advantage (NKL) and Insured California Tax-Free Advantage (NKX) issued their VRDP Shares in a privately negotiated offering during March 2010, December 2010, June 2011, June 2011 and August 2008, respectively. Proceeds of each Fund’s offering were used to redeem all, or a portion of, each Fund’s outstanding ARPS. The VRDP Shares were offered to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933. As of August 31, 2011, the number of VRDP Shares outstanding and maturity date for each Fund are as follows:
 
   
Insured
California
Premium
Income
(NPC
 
Insured
California
Premium
Income 2
(NCL
 
Insured
California
Dividend
Advantage
(NAC
 
Insured
California
Dividend
Advantage
(NKL
 
California
Tax-Free
Advantage
(NKX
Series
    1       1       1       1       2  
Shares outstanding
    427       740       1,362       1,044       355  
Maturity
   
March 1, 2040
    December 1, 2040      
June 1, 2041
     
June 1, 2041
     
June 1, 2040
 
 
VRDP Shares include a liquidity feature that allows VRDP shareholders to have their shares purchased by a liquidity provider with whom each Fund has contracted in the event that purchase orders for VRDP Shares in a remarketing are not sufficient in number to be matched with the sale orders in that remarketing. Each Fund is required to redeem any VRDP Shares that are still owned by the liquidity provider after six months of continuous, unsuccessful remarketing.
 
Dividends on the VRDP Shares (which are treated as interest payments for financial reporting purposes) are set weekly at a rate established by a remarketing agent; therefore, the market value of the VRDP Shares is expected to approximate its liquidation value. If remarketings for VRDP Shares are continuously unsuccessful for six months, the maximum rate is designed to escalate according to a specified schedule in order to enhance the remarketing agent’s ability to successfully remarket the VRDP Shares.
 
Subject to certain conditions, VRDP Shares may be redeemed, in whole or in part, at any time at the option of each Fund. Each Fund may also redeem certain of the VRDP Shares if the Fund fails to maintain certain asset coverage requirements and such failures are not cured by the applicable cure date. The redemption price per share is equal to the sum of the liquidation value per share plus any accumulated but unpaid dividends.
 
Nuveen Investments
 
93


 
 

 

   
Notes to
   
Financial Statements (Unaudited) (continued)
 
The average liquidation value outstanding and annualized dividend rate of VRDP Shares for each Fund during the six months ended August 31, 2011, were as follows:

    Insured
California
Premium
Income
(NPC
)   Insured
California
Premium
Income 2
(NCL
  California
Dividend
Advantage
(NAC
)*    Insured
California
Dividend
Advantage (NKL
)*    Insured
California
Tax-Free
Advantage
(NKX
Average liquidation value outstanding
  $ 42,700,000     $ 74,000,000     $ 136,200,000     $ 104,400,000     $ 35,500,000  
Annualized dividend rate
    0.35 %     0.39 %     0.29 %     0.29 %     0.32 %
 
*
For the period June 28, 2011 (issuance date of shares) through August 31, 2011.
 
For financial reporting purposes only, the liquidation value of VRDP Shares is recognized as a liability on the Statement of Assets and Liabilities. Unpaid dividends on VRDP Shares are recognized as a component of “Interest payable” on the Statement of Assets and Liabilities. Dividends paid on the VRDP Shares are recognized as a component of “Interest expense and amortization of offering costs” on the Statement of Operations. In addition to interest expense, each Fund also pays a per annum liquidity fee to the liquidity provider, which is recognized as “Liquidity fees on VRDP” on the Statement of Operations.
 
Insurance
Since 2007, the financial status of most major municipal bond insurers has deteriorated substantially, and some insurers have gone out of business, rendering worthless the insurance policies they had written. Under normal circumstances, Insured California Premium Income (NPC), Insured California Premium Income 2 (NCL), Insured California Dividend Advantage (NKL) and Insured California Tax-Free Advantage (NKX) invests at least 80% of their managed assets (as defined in Footnote 7 – Management Fees and Other Transactions with Affiliates) in municipal securities that are covered by insurance guaranteeing the timely payment of principal and interest. In addition, the municipal securities in which each Fund invests will be investment grade at the time of purchase (including (i) bonds insured by investment grade rated insurers or are rated investment grade; (ii) unrated bonds that are judged to be investment grade by the Adviser; and (iii) escrowed bonds). Ratings below BBB by one or more national rating agencies are considered to be below investment grade.
 
Each insured municipal security is covered by Original Issue Insurance, Secondary Market Insurance or Portfolio Insurance. Assuming that the insurer remains creditworthy, the insurance feature of a municipal security guarantees the full payment of principal and interest when due through the life of an insured obligation. Such insurance does not guarantee the market value of the insured obligation or the value of the Fund’s 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 and is reflected as an expense over the term of the policy, when applicable. 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.
 
Inverse Floating Rate Securities
Each Fund is authorized to invest in inverse floating rate securities. An inverse floating rate security is created by depositing a municipal bond, typically with a fixed interest rate, into a special purpose trust created by a broker-dealer. In turn, this trust (a) issues floating rate certificates, in face amounts equal to some fraction of the deposited bond’s par amount or market value, that typically pay short-term tax-exempt interest rates to third parties, and (b) issues to a long-term investor (such as one of the Funds) an inverse floating rate certificate (sometimes referred to as an “inverse floater”) that represents all remaining or residual interest in the trust. The income received by the inverse floater holder varies inversely with the short-term rate paid to the floating rate certificates’ holders, and in most circumstances the inverse floater holder bears substantially all of the underlying bond’s downside investment risk and also benefits disproportionately from any potential appreciation of the underlying bond’s value. The price of an inverse floating rate security will be more volatile than that of the underlying bond because the interest rate is dependent on not only the fixed coupon rate of the underlying bond but also on the short-term interest paid on the floating rate certificates, and because the inverse floating rate security essentially bears the risk of loss of the greater face value of the underlying bond.
 
A Fund may purchase an inverse floating rate security in a secondary market transaction without first owning the underlying bond (referred to as an “externally-deposited inverse floater”), or instead by first selling a fixed-rate bond to a broker-dealer for deposit into the special purpose trust and receiving in turn the residual interest in the trust (referred to as a “self-deposited inverse floater”). The inverse floater held by a Fund gives the Fund the right (a) to cause the holders of the floating rate certificates to tender their notes at par, and (b) to have the broker transfer the fixed-rate bond held by the trust to the Fund, thereby collapsing the trust. An investment in an externally-deposited inverse floater is identified in the Portfolio of Investments as “(IF) – Inverse floating rate investment.” An investment in a self-deposited inverse floater is accounted for as a financing transaction. In such instances, a fixed-rate bond deposited into a special purpose trust is identified in the Portfolio of Investments as “(UB) – Underlying bond of an inverse floating rate trust reflected as a financing transaction,” with the Fund accounting for the short-term floating rate certificates issued by the trust
 
94
 
Nuveen Investments


 
 

 
 
as “Floating rate obligations” on the Statement of Assets and Liabilities. In addition, the Fund reflects in “Investment Income” the entire earnings of the underlying bond and the related interest paid to the holders of the short-term floating rate certificates as a component of “Interest expense and amortization of offering costs” on the Statement of Operations.
 
During the six months ended August 31, 2011, each Fund invested in externally-deposited inverse floaters and/or self-deposited inverse floaters.
 
Each Fund may also enter into shortfall and forbearance agreements (sometimes referred to as a “recourse trust” or “credit recovery swap”) (such agreements referred to herein as “Recourse Trusts”) with a broker-dealer by which a Fund agrees to reimburse the broker-dealer, in certain circumstances, for the difference between the liquidation value of the fixed-rate bond held by the trust and the liquidation value of the floating rate certificates issued by the trust plus any shortfalls in interest cash flows. Under these agreements, a Fund’s potential exposure to losses related to or on inverse floaters may increase beyond the value of a Fund’s inverse floater investments as a Fund may potentially be liable to fulfill all amounts owed to holders of the floating rate certificates. At period end, any such shortfall is recognized as “Unrealized depreciation on Recourse Trusts” on the Statement of Assets and Liabilities.
 
At August 31, 2011, each Fund’s maximum exposure to externally-deposited Recourse Trusts, was as follows:

   
Insured
California
Premium
Income
(NPC
)
 
Insured
California Premium
Income 2
(NCL
)
California
Premium
Income
(NCU
)
California
Dividend
Advantage
(NAC
)
California
Dividend
Advantage 2
(NVX
)
California
Dividend
Advantage 3
(NZH
)
Insured
California
Dividend
Advantage
(NKL
)
Insured
California
Tax-Free
Advantage
(NKX
)
Maximum exposure to Recourse Trusts
 
$
9,780,000
 
$
9,515,000
 
$
6,510,000
 
$
3,590,000
 
$
16,210,000
 
$
48,960,000
 
$
7,700,000
 
$
2,905,000
 
 
The average floating rate obligations outstanding and average annual interest rate and fees related to self-deposited inverse floaters for the following Funds during the six months ended August 31, 2011, were as follows:

    Insured
California
Premium
Income 2
(NCL
  California
Premium
Income
(NCU
  California
Dividend
Advantage
(NAC
Average floating rate obligations outstanding
  $ 17,880,000     $ 6,650,000     $ 28,545,000  
Average annual interest rate and fees
    0.61 %     0.57 %     0.63 %
 
     
California
Dividend
Advantage 2
(NVX
   
California
Dividend
Advantage 3
(NZH
 
Insured
California
Dividend
Advantage
(NKL
 
Insured
California
Tax-Free
Advantage
(NKX
Average floating rate obligations outstanding
  $ 11,390,000     $ 3,845,000     $ 7,385,000     $ 3,360,000  
Average annual interest rate and fees
    0.63 %     0.57 %     0.64 %     0.80 %
 
Forward Swap Contracts
Each Fund is authorized to enter into forward interest rate swap contracts consistent with their investment objectives and policies to reduce, increase or otherwise alter its risk profile or to alter its portfolio characteristics (i.e. duration, yield curve positioning and credit quality).
 
Each Fund is subject to interest rate risk in the normal course of pursuing its investment objectives. Each Fund’s use of forward interest rate swap transactions is intended to help the Fund manage its overall interest rate sensitivity, either shorter or longer, generally to more closely align the Fund’s interest rate sensitivity with that of the broader market. Forward interest rate swap transactions involve a Fund’s agreement with a counterparty to pay, in the future, a fixed or variable rate payment in exchange for the counterparty paying a Fund a variable or fixed rate payment, the accruals for which would begin at a specified date in the future (the “effective date”). The amount of the payment obligation is based on the notional amount of the swap contract and the termination date of the swap (which is akin to a bond’s maturity). The value of a Fund’s swap commitment would increase or decrease based primarily on the extent to which long-term interest rates for bonds having a maturity of the swap’s termination date increases or decreases. Forward interest rate swap contracts are valued daily. The net amount recorded on these transactions for each counterparty is recognized on the Statement of Assets and Liabilities as a component of “Unrealized appreciation or depreciation on forward swaps” with the change during the fiscal period recognized on the Statement of Operations as a component of “Change in net unrealized appreciation (depreciation) of forward swaps.”
 
Each Fund may terminate a swap contract prior to the effective date, at which point a realized gain or loss is recognized. When a forward swap is terminated, it ordinarily does not involve the delivery of securities or other underlying assets or principal, but rather is settled in cash on a net basis. Net realized gains and losses during the fiscal period are recognized on the Statement of Operations as a component of “Net realized gain (loss) from forward swaps.” Each Fund intends, but is not obligated, to terminate its forward swaps before the effective date. Accordingly, the risk of loss with
 
Nuveen Investments
 
95

 
 

 
 
   
Notes to
   
Financial Statements (Unaudited) (continued)
 
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.
 
During the six months ended August 31, 2011, Insured California Premium Income 2 (NCL) entered into forward swap transactions to broadly reduce the sensitivity of the Fund to movements in U.S. interest rates. The average notional amount of forward interest rate swap contracts outstanding during the six months ended August 31, 2011 was as follows:

    Insured
California
Premium
Income 2
(NCL
Average notional amount of forward interest rate swap contracts outstanding*
  $ 3,833,333  
 
* The average notional amount is calculated based on the outstanding notional at the beginning of the fiscal year and at the end of each fiscal quarter within the current fiscal year.
 
Market and Counterparty Credit Risk
In the normal course of business each Fund may invest in financial instruments and enter into financial transactions where risk of potential loss exists due to changes in the market (market risk) or failure of the other party to the transaction to perform (counterparty credit risk). The potential loss could exceed the value of the financial assets recorded on the financial statements. Financial assets, which potentially expose each Fund to counterparty credit risk, consist principally of cash due from counterparties on forward, option and swap transactions, when applicable. The extent of each Fund’s exposure to counterparty credit risk in respect to these financial assets approximates their carrying value as recorded on the Statement of Assets and Liabilities. Futures contracts, when applicable, expose a Fund to minimal counterparty credit risk as they are exchange traded and the exchange’s clearinghouse, which is counterparty to all exchange traded futures, guarantees the futures contracts against default.
 
Each Fund helps manage counterparty credit risk by entering into agreements only with counterparties the Adviser believes have the financial resources to honor their obligations and by having the Adviser monitor the financial stability of the counterparties. Additionally, counterparties may be required to pledge collateral daily (based on the daily valuation of the financial asset) on behalf of each Fund with a value approximately equal to the amount of any unrealized gain above a pre-determined threshold. Reciprocally, when each Fund has an unrealized loss, 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 valuations fluctuate, either up or down, by at least the pre-determined threshold amount.
 
Zero Coupon Securities
Each Fund is authorized to invest in zero coupon securities. A zero coupon security does not pay a regular interest coupon to its holders during the life of the security. Tax-exempt income to the holder of the security comes from accretion of the difference between the original purchase price of the security at issuance and the par value of the security at maturity and is effectively paid at maturity. The market prices of zero coupon securities generally are more volatile than the market prices of securities that pay interest periodically.
 
Offering Costs
Costs incurred by the Funds in connection with their offerings of MTP Shares or VRDP Shares were recorded as a deferred charge, which will be amortized over the life of the shares. Each Fund’s amortized deferred charges are recognized as a component of “Interest expense and amortization of offering costs” on the Statement of Operations. As of August 31, 2011, each Fund’s offering costs incurred were as follows:

    California
Premium
Income
(NCU
  California
Dividend
Advantage 2
(NVX
 
California
Dividend
Advantage 3
(NZH
MTP Shares
  $ 868,750     $ 2,055,579     $ 3,269,931  

    Insured
California
Premium
Income
(NPC
  Insured
California
Premium
Income 2
(NCL
   
California
Dividend
Advantage
(NAC
  Insured
California
Dividend
Advantage
(NKL
  Insured
California
Tax-Free
Advantage
(NKX
VRDP Shares
  $ 857,000     $ 627,000     $ 650,000     $ 580,000     $ 530,000  
 
Custodian Fee Credit
Each Fund has an arrangement with the custodian bank whereby certain custodian fees and expenses are reduced by net credits earned on each Fund’s cash on deposit with the bank. Such deposit arrangements are an alternative to overnight investments. Credits for cash balances may be offset by charges for any days on which a Fund overdraws its account at the custodian bank.
 
96
 
Nuveen Investments

 
 

 
 
Indemnifications
Under the Funds’ organizational documents, their 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. GAAP 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.
 
2. Fair Value Measurements
Fair value is defined as the price that the Funds would receive upon selling an investment or transferring a liability in an orderly transaction to an independent buyer in the principal or most advantageous market for the investment. A three-tier hierarchy is used to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability. Observable inputs are based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability. Unobservable inputs are based on the best information available in the circumstances. The three-tier hierarchy of inputs is summarized in the three broad levels listed below:
 
  Level 1 –
Quoted prices in active markets for identical securities.
  Level 2 –
Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
  Level 3 –
Significant unobservable inputs (including management’s assumptions in determining the fair value of investments).
 
The inputs or methodologies used for valuing securities are not an indication of the risk associated with investing in those securities. The following is a summary of each Fund’s fair value measurements as of August 31, 2011:
 
Insured California Premium Income (NPC)
 
Level 1
   
Level 2
   
Level 3
   
Total
 
Investments:                                
Municipal Bonds
  $     $ 134,907,914     $     $ 134,907,914  
 
Insured California Premium Income 2 (NCL)
 
Level 1
   
Level 2
   
Level 3
   
Total
 
Investments:                                
Municipal Bonds
  $     $ 266,052,088     $     $ 266,052,088  
 
California Premium Income (NCU)
 
Level 1
   
Level 2
   
Level 3
   
Total
 
Investments:                                
Municipal Bonds
  $     $ 118,243,881     $ 2,236,791     $ 120,480,672  
 
California Dividend Advantage (NAC)
 
Level 1
   
Level 2
   
Level 3
   
Total
 
Investments:                                 
Municipal Bonds
  $     $ 470,695,220     $ 706,700     $ 471,401,920  
 
California Dividend Advantage 2 (NVX)
 
Level 1
   
Level 2
   
Level 3
   
Total
 
Investments:                                
Municipal Bonds
  $     $ 311,692,875     $ 440,300     $ 312,133,175  
 
California Dividend Advantage 3 (NZH)
 
Level 1
   
Level 2
   
Level 3
   
Total
 
Investments:                                
Municipal Bonds
  $     $ 457,603,383     $ 725,200     $ 458,328,583  
 
Insured California Dividend Advantage (NKL)
 
Level 1
   
Level 2
   
Level 3
   
Total
 
Investments:                                
Municipal Bonds
  $     $ 334,584,349     $     $ 334,584,349  
 
Insured California Tax-Free Advantage (NKX)
 
Level 1
   
Level 2
   
Level 3
   
Total
 
Investments:                                
Municipal Bonds
  $     $ 116,351,102     $     $ 116,351,102  
 
Nuveen Investments
 
97

 
 

 
 
   
Notes to
   
Financial Statements (Unaudited) (continued)
 
The following is a reconciliation of each Fund’s Level 3 investments held at the beginning and end of the measurement period:

    California     California      California     California  
   
Premium
    Dividend     Dividend     Dividend  
    Income     Advantage     Advantage 2     Advantage 3  
    (NCU   (NAC   (NVX   (NZH
    Level 3     Level 3     Level 3     Level 3  
    Municipal     Municipal     Municipal     Municipal  
   
Bonds
   
Bonds
   
Bonds
   
Bonds
 
Balance at the beginning of period
  $ 2,746,970     $ 1,229,601     $ 766,086     $ 1,261,789  
   Gains (losses):                                
Net realized gains (losses)
                       
Net change in unrealized appreciation (depreciation)
    179,821       (522,901 )     (325,786 )     (536,589 )
Purchases at cost
                       
Sales at proceeds
    (690,000 )                  
Net discounts (premiums)
                       
Transfers in to
                       
Transfers out of
                       
Balance at the end of period
  $ 2,236,791     $ 706,700     $ 440,300     $ 725,200  
Change in net unrealized appreciation (depreciation) during the period of Level 3 securities held as of August 31, 2011
  $ 179,821     $ (522,901 )   $ (325,786 )   $ (536,589 )
 
During the six months ended August 31, 2011, the Funds recognized no significant transfers to or from Level 1, Level 2 or Level 3.
 
3. Derivative Instruments and Hedging Activities
The Funds record derivative instruments at fair value, with changes in fair value recognized on the Statement of Operations, when applicable. Even though the Funds’ investments in derivatives may represent economic hedges, they are not considered to be hedge transactions for financial reporting purposes. For additional information on the derivative instruments in which each Fund was invested during and at the end of the reporting period, refer to the Portfolios of Investments, Financial Statements and Footnote 1 - General Information and Significant Accounting Policies.
 
The following tables present the amount of net realized gain (loss) and change in net unrealized appreciation (depreciation) recognized for the six months ended August 31, 2011, on derivative instruments, as well as the primary risk exposure associated with each.

Net Realized Gain (Loss) from Forward Swaps
 
Insured
California
Premium
Income 2
(NCL
)
Risk Exposure        
Interest Rate
 
$
(346,971
)

Change in Net Unrealized Appreciation (Depreciation) of Forward Swaps
 
Insured
California
Premium
Income 2
(NCL
)
Risk Exposure        
Interest Rate
 
$
15,872
 
 
98
 
Nuveen Investments
 
 
 

 
 
4. Fund Shares
 
Common Shares
Transactions in Common shares were as follows:

   
Insured California
Premium Income (NPC)
 
Insured California
Premium Income 2 (NCL)
 
   
Six Months
Ended
8/31/11
 
Year Ended
2/28/11
 
Six Months
Ended
8/31/11
 
Year Ended
2/28/11
 
Common shares:                           
Issued to shareholders due to reinvestment of distributions
   
   
   
   
2,552
 
Repurchased and retired
   
   
   
   
(1,200
)
Weighted average Common share:
                         
Price per share repurchased and retired
   
   
   
 
$
12.14
 
Discount per share repurchased and retired
   
   
   
   
13.47
%

   
California Premium
Income (NCU)
 
California Dividend
Advantage (NAC)
 
   
Six Months
Ended
8/31/11
 
Year Ended
2/28/11
 
Six Months
Ended
8/31/11
 
Year Ended
2/28/11
 
Common shares:
                         
Issued to shareholders due to reinvestment of distributions
   
   
   
   
 
Repurchased and retired
   
   
(2,400
)
 
   
 
Weighted average Common share:
                         
Price per share repurchased and retired
   
 
$
11.82
   
   
 
Discount per share repurchased and retired
   
   
14.53
%
 
   
 

   
California Dividend
Advantage 2 (NVX)
 
California Dividend
Advantage 3 (NZH)
 
   
Six Months
Ended
8/31/11
 
Year Ended
2/28/11
 
Six Months
Ended
8/31/11
 
Year Ended
2/28/11
 
Common shares:
                         
Issued to shareholders due to reinvestment of distributions
   
   
   
   
8,485
 
Repurchased and retired
   
   
   
   
 
Weighted average Common share:
                         
Price per share repurchased and retired
   
   
   
   
 
Discount per share repurchased and retired
   
   
   
   
 

   
Insured California Dividend
Advantage (NKL)
 
Insured California Tax-Free
Advantage (NKX)
 
   
Six Months
Ended
8/31/11
 
Year Ended
2/28/11
 
Six Months
Ended
8/31/11
 
Year Ended
2/28/11
 
Common shares:
                         
Issued to shareholders due to reinvestment of distributions
   
   
2,873
   
   
596
 
Repurchased and retired
   
   
   
   
 
Weighted average Common share:
                         
Price per share repurchased and retired
   
   
   
   
 
Discount per share repurchased and retired
   
   
   
   
 
 
Preferred Shares
Insured California Tax-Free Advantage (NKX) redeemed all of its outstanding ARPS during the fiscal year ended August 31, 2008.
 
Nuveen Investments
 
99
 
 
 

 

   
Notes to
   
Financial Statements (Unaudited) (continued)
 
Transactions in ARPS were as follows:

   
Insured California
Premium Income (NPC)
 
Insured California
Premium Income 2 (NCL)
 
   
Six Months Ended
8/31/11
 
Year Ended
2/28/11
 
Six Months Ended
8/31/11
 
Year Ended
2/28/11
 
   
Shares
 
Amount
 
Shares
 
Amount
 
Shares
 
Amount
 
Shares
 
Amount
 
ARPS redeemed:
                                                 
Series T
   
N/A
   
N/A
   
1,800
 
$
45,000,000
   
N/A
   
N/A
   
1,597
 
$
39,925,000
 
Series TH
   
N/A
   
N/A
   
   
   
N/A
   
N/A
   
1,596
   
39,900,000
 
Total
   
N/A
   
N/A
   
1,800
 
$
45,000,000
   
N/A
   
N/A
   
3,193
 
$
79,825,000
 

   
California
Premium Income (NCU)
 
California Dividend
Advantage (NAC)
 
   
Six Months Ended
8/31/11
 
Year Ended
2/28/11
 
Six Months Ended
8/31/11
 
Year Ended
2/28/11
 
   
Shares
 
Amount
 
Shares
 
Amount
 
Shares
 
Amount
 
Shares
 
Amount
 
ARPS redeemed:
                                                 
Series M
   
N/A
   
N/A
   
1,375
 
$
34,375,000
   
 
$
   
 
$
 
Series TH
   
N/A
   
N/A
   
   
   
2,710
   
67,750,000
   
   
 
Series F
   
N/A
   
N/A
   
   
   
2,711
   
67,775,000
   
   
 
Total
   
N/A
   
N/A
   
1,375
 
$
34,375,000
   
5,421
 
$
135,525,000
   
 
$
 

   
California Dividend
Advantage 2 (NVX)
 
California Dividend
Advantage 3 (NZH)
 
   
Six Months Ended
8/31/11
 
Year Ended
2/28/11
 
Six Months Ended
8/31/11
 
Year Ended
2/28/11
 
   
Shares
 
Amount
 
Shares
 
Amount
 
Shares
 
Amount
 
Shares
 
Amount
 
ARPS redeemed:
                                                 
Series M
   
799
 
$
19,975,000
   
1,076
 
$
26,900,000
   
1,389
 
$
34,725,000
   
 
$
 
Series TH
   
   
   
   
   
1,391
   
34,775,000
   
   
 
Series F
   
799
   
19,975,000
   
1,077
   
26,925,000
   
   
   
   
 
Total
   
1,598
 
$
39,950,000
   
2,153
 
$
53,825,000
   
2,780
 
$
69,500,000
   
 
$
 

   
Insured California
Dividend Advantage (NKL)
 
   
Six Months Ended
8/31/11
 
Year Ended
2/28/11
 
   
Shares
 
Amount
 
Shares
 
Amount
 
ARPS redeemed:
                 
Series T
    2,075   $ 51,875,000     90   $ 2,250,000  
Series F
    2,075     51,875,000     90     2,250,000  
Total
    4,150   $ 103,750,000     180   $ 4,500,000  
 
N/A - As of February 28, 2011, the Fund redeemed all of its outstanding ARPS at liquidation value.
Transactions in MTP Shares were as follows:

   
California
Premium Income (NCU)
 
California Dividend
Advantage 2 (NVX)
 
   
Six Months Ended
8/31/11
 
Year Ended
2/28/11
 
Six Months Ended
8/31/11
 
Year Ended
2/28/11
 
   
Shares
 
Amount
 
Shares
 
Amount
 
Shares
 
Amount
 
Shares
 
Amount
 
MTP Shares issued:
                                                 
Series 2014
   
 
$
   
 
$
   
4,284,630
 
$
42,846,300
   
 
$
 
Series 2015
   
   
   
3,525,000
   
35,250,000
   
   
   
5,500,000
   
55,000,000
 
Total
   
 
$
   
3,525,000
 
$
35,250,000
   
4,284,630
 
$
42,846,300
   
5,500,000
 
$
55,000,000
 
 
100
 
Nuveen Investments
 
 
 

 

   
California Dividend
Advantage 3 (NZH)
 
   
Six Months Ended
8/31/11
 
Year Ended
2/28/11
 
   
Shares
 
Amount
 
Shares
 
Amount
 
MTP Shares issued:
                         
Series 2014
   
2,700,000
 
$
27,000,000
   
 
$
 
Series 2014-1
   
4,629,450
   
46,294,500
   
   
 
Total
   
7,329,450
 
$
73,294,500
   
 
$
 
 
Transactions in VRDP Shares were as follows:

   
Insured California
Premium Income (NPC)
 
Insured California
Premium Income 2 (NCL)
 
   
Six Months Ended
8/31/11
 
Year Ended
2/28/11
 
Six Months Ended
 8/31/11
 
Year Ended
2/28/11
 
   
Shares
 
Amount
 
Shares
 
Amount
 
Shares
 
Amount
 
Shares
 
Amount
 
VRDP Shares issued:
                                                 
Series 1
   
 
$
   
427
 
$
42,700,000
   
 
$
   
740
 
$
74,000,000
 

   
California Dividend
Advantage (NAC)
 
Insured California
Dividend Advantage (NKL)
 
   
Six Months Ended
8/31/11
 
Year Ended
2/28/11
 
Six Months Ended
8/31/11
 
Year Ended
2/28/11
 
   
Shares
 
Amount
 
Shares
 
Amount
 
Shares
 
Amount
 
Shares
 
Amount
 
VRDP Shares issued:
                                                 
Series 1
   
1,362
 
$
136,200,000
   
 
$
   
1,044
 
$
104,400,000
   
 
$
 
 
5. Investment Transactions
Purchases and sales (including maturities but excluding short-term investments and derivative transactions, where applicable) during the six months ended August 31, 2011, were as follows:

    Insured
California
Premium
Income
(NPC
  Insured
California
Premium
Income 2
(NCL
  California
Premium
Income
(NCU
  California
Dividend
Advantage
(NAC
Purchases
  $ 10,839,226     $ 5,028,600     $ 7,773,382     $ 32,370,115  
Sales and maturities
    12,734,546       8,335,739       7,585,176       47,058,240  

    California
Dividend
Advantage 2
(NVX
  California
Dividend
Advantage 3
(NZH
  Insured
California
Dividend
Advantage
(NKL
  Insured
California
Tax-Free
Advantage
(NKX
Purchases
  $ 11,487,027     $ 33,705,919     $ 28,822,652     $ 1,495,410  
Sales and maturities
    14,216,407       40,001,620       26,677,784       3,906,596  
 
6. 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 timing differences in recognizing taxable market discount, timing differences in recognizing certain gains and losses on investment transactions and the treatment of investments in inverse floating rate securities reflected as financing transactions, if any. To the extent that differences arise that are permanent in nature, such amounts are reclassified within the capital accounts as detailed below. Temporary differences do not require reclassification. Temporary and permanent differences do not impact the net asset values of the Funds.

Nuveen Investments
 
101

 
 

 
 
   
Notes to
   
Financial Statements (Unaudited) (continued)
 
At August 31, 2011, the cost and unrealized appreciation (depreciation) of investments (excluding investments in derivatives), as determined on a federal income tax basis, were as follows:

    Insured
California
Premium
Income
(NPC
  Insured
California
Premium
Income 2
(NCL
  California
Premium
Income
(NCU
  California
Dividend
Advantage
(NAC
Cost of investments
  $ 129,892,192     $ 245,461,303     $ 111,419,802     $ 445,098,986  
Gross unrealized:                                
Appreciation
  $ 8,176,497     $ 8,065,777     $ 5,612,319     $ 20,331,350  
Depreciation
    (3,160,775 )     (5,355,568 )     (3,204,596 )     (22,570,294 )
Net unrealized appreciation (depreciation) of investments
  $ 5,015,722     $ 2,710,209     $ 2,407,723     $ (2,238,944 )

    California
Dividend
Advantage 2
(NVX
  California
Dividend
Advantage 3
(NZH
  Insured
California
Dividend
Advantage
(NKL
  Insured
California
Tax-Free
Advantage
(NKX
Cost of investments
  $ 300,785,430     $ 463,561,736     $ 323,112,366     $ 113,965,753  
Gross unrealized:                                
Appreciation
  $ 13,140,408     $ 14,841,594     $ 13,754,047     $ 3,669,133  
Depreciation
    (13,179,724 )     (23,919,747 )     (9,666,861 )     (4,641,354 )
Net unrealized appreciation (depreciation) of investments
  $ (39,316 )   $ (9,078,153 )   $ 4,087,186     $ (972,221 )
 
Permanent differences, primarily due to federal taxes paid, taxable market discount, expiration of capital loss carryforwards, nondeductible offering costs, and distribution character reclassifications, resulted in reclassifications among the Funds’ components of Common share net assets at February 28, 2011, the Funds’ last tax year end, as follows:

    Insured
California
Premium
Income
(NPC
  Insured
California
Premium
Income 2
(NCL
  California
Premium
Income
(NCU
  California
Dividend
Advantage
(NAC
Paid-in-surplus
  $ (20,434 )   $ 14,452     $ (70,792 )   $ 40,747  
Undistributed (Over-distribution of) net investment income
    26,221       (28,128 )     68,677       (155,199 )
Accumulated net realized gain (loss)
    (5,787 )     13,676       2,115       114,452  

    California
Dividend
Advantage 2
(NVX
  California
Dividend
Advantage 3
(NZH
  Insured
California
Dividend
Advantage
(NKL
  Insured
California
Tax-Free
Advantage
(NKX
Paid-in-surplus
  $ (82,092 )   $ (3,141,289 )   $     $ (216,845 )
Undistributed (Over-distribution of) net investment income
    53,999       268,858       (22,891 )     216,845  
Accumulated net realized gain (loss)
    28,092       2,872,431       22,891        
 
The tax components of undistributed net tax-exempt income, net ordinary income and net long-term capital gains at February 28, 2011, the Funds’ last tax year end, were as follows:
 
    Insured
California
Premium
Income
(NPC
  Insured
California
Premium
Income 2
(NCL
  California
Premium
Income
(NCU
  California
Dividend
Advantage
(NAC
Undistributed net tax-exempt income *
  $ 1,839,223     $ 3,879,525     $ 1,788,999     $ 7,689,513  
Undistributed net ordinary income **
    161,841       150,935       3,522       106,883  
Undistributed net long-term capital gains
    48,836                    
 
102
 
Nuveen Investments
 
 
 

 
 
    California
Dividend
Advantage 2
(NVX
  California
Dividend
Advantage 3
(NZH
  Insured
California
Dividend
Advantage
(NKL
  Insured
California
Tax-Free
Advantage
(NKX
Undistributed net tax-exempt income *
  $ 5,075,158     $ 5,823,059     $ 5,167,309     $ 1,360,346  
Undistributed net ordinary income **
    11,877       8,491       84,729       28,931  
Undistributed net long-term capital gains
                       
 
*
Undistributed net tax-exempt income (on a tax basis) has not been reduced for the dividend declared on February 1, 2011, paid on March 1, 2011.
**
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 Funds’ last tax year ended February 28, 2011, was designated for purposes of the dividends paid deduction as follows:

    Insured
California
Premium
Income
(NPC
  Insured
California
Premium
Income 2
(NCL
  California
Premium
Income
(NCU
  California
Dividend
Advantage
(NAC
Distributions from net tax-exempt income
  $ 5,686,773     $ 11,251,372     $ 5,256,853     $ 21,325,264  
Distributions from net ordinary income **
                       
Distributions from net long-term capital gains
    180,380                    

    California
Dividend
Advantage 2
(NVX
  California
Dividend
Advantage 3
(NZH
  Insured
California
Dividend
Advantage
(NKL
  Insured
California
Tax-Free
Advantage
(NKX
Distributions from net tax-exempt income
  $ 14,738,103     $ 24,545,542     $ 14,593,850     $ 4,850,289  
Distributions from net ordinary income **
                       
Distributions from net long-term capital gains
                       
 
**
Net ordinary income consists of taxable market discount income and net short-term capital gains, if any.
 
At February 28, 2011, the Funds’ last tax 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
California
Premium
Income 2
(NCL
  California
Premium
Income
(NCU
  California
Dividend
Advantage
(NAC
  California
Dividend
Advantage 2
(NVX
  California
Dividend
Advantage 3
(NZH
  Insured
California
Dividend
Advantage
(NKL
  Insured
California
Tax-Free
Advantage
(NKX
Expiration:                                                        
February 29, 2012
  $     $     $     $     $ 323,840     $     $  
February 29, 2016
                            3,869,938              
February 28, 2017
          59,969       10,106,897             4,536,999       123,944       485,298  
February 28, 2018
    1,444,281       881,108       731,149       705,843       10,646,251       1,227,051       530,894  
February 28, 2019
                            1,340,157              
Total
  $ 1,444,281     $ 941,077     $ 10,838,046     $ 705,843     $ 20,717,185     $ 1,350,995     $ 1,016,192  
 
During the Funds’ last tax year ended February 28, 2011, the following Funds utilized capital loss carryforwards as follows:

    Insured
California
Premium
Income 2
(NCL
  California
Premium
Income
(NCU
  California
Dividend
Advantage
(NAC
  California
Dividend
Advantage 2
(NVX
 
Insured
California
Dividend
Advantage
(NKL
  Insured
California
Tax-Free
Advantage
(NKX
Utilized capital loss carryforwards
  $ 3,881,652     $ 28,554     $ 4,030,701     $ 2,142,267     $ 116,727     $ 105,651  
 
Nuveen Investments
 
103
 
 
 

 

   
Notes to
   
Financial Statements (Unaudited) (continued)
 
At February 28, 2011, the Funds’ last tax year end, $2,816,211 of California Dividend Advantage 3’s (NZH) capital loss carryforward expired.
 
The following Funds have elected to defer net realized losses from investments incurred from November 1, 2010 through February 28, 2011, the Funds’ last tax year end, (“post-October losses”) in accordance with federal income tax regulations. Post-October losses are treated as having arisen on the first day of the current fiscal year:

    Insured
California
Premium
Income
(NPC
  Insured
California
Premium
Income 2
(NCL
 

California
Premium
Income
(NCU
  California
Dividend
Advantage
(NAC
 
Insured
California
Tax-Free
Advantage
(NZH
Post-October capital losses
  $ 1,606     $ 5,056     $ 8,964     $ 3,411,514     $ 642,021  
 
7. Management Fees and Other Transactions with Affiliates
Each Fund’s management fee consists of two components – a fund-level fee, based only on the amount of assets within the Fund, and a complex-level fee, based on the aggregate amount of all eligible fund assets managed by the Adviser. This pricing structure enables Fund shareholders to benefit from growth in the assets within their respective Fund as well as from growth in the amount of complex-wide assets managed by the Adviser.
 
The annual fund-level fee for each Fund, payable monthly, is calculated according to the following schedule:

Average Daily Managed Assets*
 
Insured California Premium Income (NPC)
Insured California Premium Income 2 (NCL)
California Premium Income (NCU)
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 managed assets over $5 billion
  .3750  

Average Daily Managed Assets*
 
California Dividend Advantage (NAC)
California Dividend Advantage 2 (NVX)
California Dividend Advantage 3 (NZH)
Insured California Dividend Advantage (NKL)
Insured California Tax-Free Advantage (NKX)
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 managed assets over $2 billion
  .3750  
 
104
 
Nuveen Investments
 
 
 

 
 
The annual complex-level fee for each Fund, payable monthly, is calculated according to the following schedule:
 
Complex-Level Managed Asset Breakpoint Level*
 
Effective Rate at Breakpoint Level
$55 billion
  .2000 %
$56 billion
  .1996  
$57 billion
  .1989  
$60 billion
  .1961  
$63 billion
  .1931  
$66 billion
  .1900  
$71 billion
  .1851  
$76 billion
  .1806  
$80 billion
  .1773  
$91 billion
  .1691  
$125 billion
  .1599  
$200 billion
  .1505  
$250 billion
  .1469  
$300 billion
  .1445  
 
*
For the fund-level and complex-level fees, managed assets include closed-end fund assets managed by the Adviser that are attributable to financial leverage. For these purposes, financial leverage includes the funds’ use of preferred stock and borrowings and certain investments in the residual interest certificates (also called inverse floating rate securities) in tender option bond (TOB) trusts, including the portion of assets held by a TOB trust that has been effectively financed by the trust’s issuance of floating rate securities, subject to an agreement by the Adviser as to certain funds to limit the amount of such assets for determining managed assets in certain circumstances. The complex-level fee is calculated based upon the aggregate daily managed assets of all Nuveen Funds that constitute “eligible assets.” Eligible assets do not include assets attributable to investments in other Nuveen Funds or assets in excess of $2 billion added to the Nuveen Fund complex in connection with the Adviser’s assumption of the management of the former First American Funds effective January 1, 2011. As of August 31, 2011, the complex-level fee rate for each of these Funds was .1781%.
 
The management fee compensates the Adviser for overall investment advisory and administrative services and general office facilities. The Adviser has entered into sub-advisory agreements with Nuveen Asset Management, LLC (the “Sub-Adviser”), a wholly-owned subsidiary of the Adviser, under which the Sub-Adviser manages the investment portfolios of the Funds. The Sub-Adviser is compensated for its services to the Funds from the management fees paid to the Adviser.
 
The Funds pay no compensation directly to those of its directors/trustees who are affiliated with the Adviser or to its 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 2’s (NVX) operations, the Adviser has agreed to reimburse the Fund, as a percentage of average daily managed assets, for fees and expenses in the amounts and for the time periods set forth below:
 
Year Ending
March 31,
   
Year Ending
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.
Nuveen Investments
 
105
 
 
 

 

   
Notes to
   
Financial Statements (Unaudited) (continued)
 
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 managed assets, for fees and expenses in the amounts and for the time periods set forth below:
 
Year Ending
September 30,
   
Year Ending
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.
 
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 managed assets, for fees and expenses in the amounts and for the time periods set forth below:
 
Year Ending
March 31,
   
Year Ending
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.
 
As of November 30, 2010, the Adviser is no longer reimbursing Insured California Tax-Free Advantage (NKX) for any portion of its fees and expenses.
 
8. New Accounting Pronouncements
 
Fair Value Measurements and Disclosures
On May 12, 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2011-04 (“ASU No. 2011-04”) modifying Topic 820, Fair Value Measurements and Disclosures. At the same time, the International Accounting Standards Board (“IASB”) issued International Financial Reporting Standard (“IFRS”) 13, Fair Value Measurement. The objective of the FASB and IASB is convergence of their guidance on fair value measurements and disclosures. Specifically, ASU No. 2011-04 requires reporting entities to disclose i) the amounts of any transfers between Level 1 and Level 2, the reasons for the transfers, ii) for Level 3 fair value measurements, a) quantitative information about significant unobservable inputs used, b) a description of the valuation processes used by the reporting entity and c) a narrative description of the sensitivity of the fair value measurement to changes in unobservable inputs if a change in those inputs might result in a significantly higher or lower fair value measurement. The effective date of ASU No. 2011-04 is for interim and annual periods beginning after December 15, 2011. At this time, management is evaluating the implications of this guidance and the impact it will have on the financial statement amounts and footnote disclosures, if any.
 
106
 
Nuveen Investments
 
 
 

 
Annual Investment Management
Agreement Approval Process (Unaudited)
 
The Board of Trustees or Directors (as the case may be) (each, a “Board” and each Trustee or Director, a “Board Member”) of the Funds, including the Board Members who are not parties to the Funds’ advisory or sub-advisory agreements or “interested persons” of any such parties (the “Independent Board Members”), are responsible for approving the advisory agreements (each, an “Investment Management Agreement”) between each Fund and Nuveen Fund Advisors, Inc. (the “Advisor”) and the sub-advisory agreements (each a “Sub-Advisory Agreement”) between the Advisor and Nuveen Asset Management, LLC (the “Sub-Advisor”) (the Investment Management Agreements and the Sub-Advisory Agreements are referred to collectively as the “Advisory Agreements”) and their periodic continuation. Pursuant to the Investment Company Act of 1940, as amended (the “1940 Act”), the Board is generally required to consider the continuation of advisory agreements and sub-advisory agreements on an annual basis. Accordingly, at an in-person meeting held on May 23-25, 2011 (the “May Meeting”), the Board, including a majority of the Independent Board Members, considered and approved the continuation of the Advisory Agreements for the Funds for an additional one-year period.
 
In preparation for their considerations at the May Meeting, the Board requested and received extensive materials prepared in connection with the review of the Advisory Agreements. The materials provided a broad range of information regarding the Funds, the Advisor and the Sub-Advisor (the Advisor and the Sub-Advisor are collectively, the “Fund Advisers” and each, a “Fund Adviser”). As described in more detail below, the information provided included, among other things, a review of Fund performance, including Fund investment performance assessments against peer groups and appropriate benchmarks, a comparison of Fund fees and expenses relative to peers, a description and assessment of shareholder service levels for the Funds, a summary of the performance of certain service providers, a review of product initiatives and shareholder communications and an analysis of the Advisor’s profitability with comparisons to comparable peers in the managed fund business. As part of their annual review, the Board also held a separate meeting on April 19-20, 2011, to review the Funds’ investment performance and consider an analysis provided by the Advisor of the Sub-Advisor which generally evaluated the Sub-Advisor’s investment team, investment mandate, organizational structure and history, investment philosophy and process, performance of the applicable Fund, and significant changes to the foregoing. As a result of their review of the materials and discussions, the Board presented the Advisor with questions and the Advisor responded.
 
The materials and information prepared in connection with the review of the Advisory Agreements at the May Meeting supplemented the information provided to the Board during the year. In this regard, throughout the year, the Board, acting directly or through
 
Nuveen Investments
 
107

 
 

 
Annual Investment Management Agreement
Approval Process (Unaudited) (continued)
 
its committees, regularly reviews the performance and various services provided by the Advisor and, since the internal restructuring described in Section A below, the Sub-Advisor. The Board meets at least quarterly as well as at other times as the need arises. At its quarterly meetings, the Board reviews reports by the Advisor which include, among other things, Fund performance, a review of the investment teams and compliance reports. The Board also meets with key investment personnel managing the Fund portfolios during the year. In addition, the Board continues its program of seeking to visit each sub-advisor to the Nuveen funds at least once over a multiple year rotation, meeting with key investment and business personnel. The Board also met with State Street Bank & Trust Company, the Funds’ accountant and custodian, in 2010. The Board considers factors and information that are relevant to its consideration of the renewal of the Advisory Agreements at these meetings held throughout the year. Accordingly, the Board considered the information provided and knowledge gained at these meetings when performing its review at the May Meeting of the Advisory Agreements. The Independent Board Members are assisted throughout the process by independent legal counsel who provided materials describing applicable law and the duties of directors or trustees in reviewing advisory contracts and met with the Independent Board Members in executive sessions without management present.
 
The Board considered all factors it believed relevant with respect to each Fund, including among other factors: (a) the nature, extent and quality of the services provided by the Fund Advisers, (b) the investment performance of the Fund and Fund Advisers, (c) the advisory fees and costs of the services to be provided to the Funds and the profitability of the Fund Advisers, (d) the extent of any economies of scale, (e) any benefits derived by the Fund Advisers from the relationship with the Fund and (f) other factors. Each Board Member may have accorded different weight to the various factors in reaching his or her conclusions with respect to a Fund’s Advisory Agreements. The Independent Board Members did not identify any single factor as all important or controlling. The Independent Board Members’ considerations were instead based on a comprehensive consideration of all the information presented. The principal factors considered by the Board and its conclusions are described below.
 
A. Nature, Extent and Quality of Services
In considering renewal of the Advisory Agreements, the Independent Board Members considered the nature, extent and quality of the Fund Adviser’s services, including advisory services and the resulting Fund performance and administrative services. The Independent Board Members reviewed materials outlining, among other things, the Fund Adviser’s organization and business; the types of services that the Fund Adviser or its affiliates provide to the Funds; the performance record of the applicable Fund (as described in further detail below); and any initiatives Nuveen had taken for the applicable fund product line.
 
In considering advisory services, the Board recognized that the Advisor provides various oversight, administrative, compliance and other services for the Funds and the Sub-Advisor provides the portfolio investment management services to the Funds. The Board recognized that Nuveen engaged in an internal restructuring in 2010 pursuant to
 
108
 
Nuveen Investments

 
 

 
which portfolio management services the Advisor had provided directly to the Funds were transferred to the Sub-Advisor, a newly-organized, wholly-owned subsidiary of the Advisor consisting of largely the same investment personnel. Accordingly, in reviewing the portfolio management services provided to each Fund, the Board reviewed the materials provided by the Nuveen Investment Services Oversight Team analyzing, among other things, the Sub-Advisor’s investment team and changes thereto, organization and history, assets under management, Fund objectives and mandate, the investment team’s philosophy and strategies in managing the Fund, developments affecting the Sub-Advisor or Fund and Fund performance. The Independent Board Members also reviewed portfolio manager compensation arrangements to evaluate each Fund Adviser’s ability to attract and retain high quality investment personnel, preserve stability, and reward performance but not provide an incentive to take undue risks. In addition, the Board considered the Advisor’s execution of its oversight responsibilities over the Sub-Advisor. Given the importance of compliance, the Independent Board Members also considered Nuveen’s compliance program, including the report of the chief compliance officer regarding the Funds’ compliance policies and procedures.
 
In addition to advisory services, the Board considered the quality and extent of administrative and other non-investment advisory services the Advisor and its affiliates provide to the Funds, including product management, investment services (such as oversight of investment policies and procedures, risk management, and pricing), fund administration, oversight of service providers, shareholder services, administration of Board relations, regulatory and portfolio compliance, legal support, managing leverage and promoting an orderly secondary market for common shares.
 
In reviewing the services provided, the Board also reviewed materials describing various notable initiatives and projects the Advisor performed in connection with the closed-end fund product line. These initiatives included continued activities to refinance auction rate preferred securities; ongoing services to manage leverage that has become increasingly complex; continued secondary market offerings and share repurchases for certain funds; and continued communications efforts with shareholders, fund analysts and financial advisers. With respect to the latter, the Independent Board Members noted Nuveen’s continued commitment to supporting the secondary market for the common shares of its closed-end funds through a comprehensive secondary market communication program designed to raise investor and analyst awareness and understanding of closed-end funds. Nuveen’s support services included, among other things: continuing communications in support of refinancing efforts related to auction rate preferred securities; participating in conferences; communicating continually with closed-end fund analysts covering the Nuveen funds; providing marketing for the closed-end funds; share purchases; and maintaining and enhancing a closed-end fund website.
 
Based on their review, the Independent Board Members found that, overall, the nature, extent and quality of services provided to the respective Funds under each applicable Advisory Agreement were satisfactory.
 
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Annual Investment Management Agreement
Approval Process (Unaudited) (continued)
 
B. The Investment Performance of the Funds and Fund Advisers
The Board, including the Independent Board Members, reviewed and considered the performance history of each Fund over various time periods. The Board reviewed, among other things, each Fund’s historic investment performance as well as information comparing the Fund’s performance information with that of other funds (the “Performance Peer Group”) based on data provided by an independent provider of mutual fund data and with recognized and/or customized benchmarks.
 
The Board reviewed reports, including a comprehensive analysis of the Funds’ performance and the applicable investment team. In this regard, the Board reviewed each Fund’s total return information compared to its Performance Peer Group for the quarter, one-, three- and five-year periods ending December 31, 2010 and for the same periods ending March 31, 2011. In addition, the Board reviewed each Fund’s total return information compared to recognized and/or customized benchmarks for the quarter, one- and three-year periods ending December 31, 2010 and for the same periods ending March 31, 2011. The Independent Board Members also reviewed historic premium and discount levels, including a summary of actions taken to address or discuss other developments affecting the secondary market discounts of various funds. This information supplemented the Fund performance information provided to the Board at each of its quarterly meetings.
 
In reviewing performance comparison information, the Independent Board Members recognized that the usefulness of the comparisons of the performance of certain funds with the performance of their respective Performance Peer Group may be limited because the Performance Peer Group may not adequately represent the objectives and strategies of the applicable funds or may be limited in size or number. In this regard, the Independent Board Members noted that the Performance Peer Groups of the Nuveen Insured California Premium Income Municipal Fund, Inc. (the “Insured Premium Income Fund”), the Nuveen Insured California Dividend Advantage Municipal Fund (the “Insured Dividend Advantage Fund”), the Nuveen Insured California Tax-Free Advantage Municipal Fund (the “Insured Tax-Free Advantage Fund”) and the Nuveen Insured California Premium Income Municipal Fund 2, Inc. (the “Insured Premium Income Fund 2”) were classified as having significant differences from such Funds based on various considerations such as special fund objectives, potential investable universe and the composition of the peer set (e.g., the number and size of competing funds and number of competing managers). The Independent Board Members also noted that the investment experience of a particular shareholder in the Nuveen funds will vary depending on when such shareholder invests in the applicable fund, the class held (if multiple classes are offered) and the performance of the fund (or respective class) during that shareholder’s investment period.
 
In considering the results of the comparisons, the Independent Board Members observed, among other things, that (a) the Nuveen California Premium Income Municipal Fund (the “Premium Income Fund”) and the Nuveen California Dividend Advantage Municipal Fund 2 had demonstrated generally favorable performance in comparison to peers, performing in the first or second quartile over various periods and (b) the Nuveen California Dividend Advantage Municipal Fund 3 had demonstrated satisfactory performance compared to its peers, performing in the second or third quartile over various
 
110
 
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periods. They also noted that the Nuveen California Dividend Advantage Municipal Fund lagged its peers and/or benchmarks over various periods. With respect to Nuveen funds that lagged their peers and/or benchmarks over various periods, the Independent Board Members considered the factors affecting performance and any steps taken or proposed to address performance issues, and were satisfied with the process followed. With respect to the Funds that, as noted above, had significant differences with their Performance Peer Groups, the Independent Board Members considered such Funds’ performance compared to their benchmarks. In this regard, the Independent Board Members noted that the Insured Premium Income Fund, the Insured Dividend Advantage Fund, the Insured Tax-Free Advantage Fund and the Insured Premium Income Fund 2 each underperformed their benchmarks in the one- and three-year periods.
 
With respect to any Nuveen funds that underperformed their peers and/or benchmarks from time to time, the Board monitors such funds closely and considers any steps necessary or appropriate to address such issues.
 
Based on their review, the Independent Board Members determined that each Fund’s investment performance had been satisfactory.
   
C.
Fees, Expenses and Profitability
 
1. Fees and Expenses
 
The Board evaluated the management fees and expenses of each Fund reviewing, among other things, such Fund’s gross management fees, net management fees and net expense ratios in absolute terms as well as compared to the fee and expenses of a comparable universe of funds based on data provided by an independent fund data provider (the “Peer Universe”) and in certain cases, to a more focused subset of funds in the Peer Universe (the “Peer Group”) and any expense limitations.
   
 
The Independent Board Members further reviewed the methodology regarding the construction of the applicable Peer Universe and Peer Group (if any). In reviewing the comparisons of fee and expense information, the Independent Board Members took into account that in certain instances various factors such as: the asset level of a fund relative to peers; the limited size and particular composition of the Peer Universe or Peer Group; the investment objectives of the peers; expense anomalies; changes in the funds comprising the Peer Universe or Peer Group from year to year; levels of reimbursement; the timing of information used; the differences in the type and use of leverage; and differences in the states reflected in the Peer Universe or Peer Group may impact the comparative data thereby limiting the ability to make a meaningful comparison with peers, including for the Insured Dividend Advantage Fund and the Insured Tax-Free Advantage Fund.
   
 
In reviewing the fee schedule for a Fund, the Independent Board Members also considered the fund-level and complex-wide breakpoint schedules (described in further detail below) and any fee waivers and reimbursements provided by Nuveen (applicable, in particular, for certain closed-end funds launched since 1999). In reviewing fees and expenses, the Board considered the expenses and fees to be higher if they were over 10 basis points higher, slightly higher if they were 6 to 10

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Annual Investment Management Agreement
Approval Process (Unaudited) (continued)
 
  basis points higher, in line if they were within 5 basis points higher than the peer average and below if they were below the peer average of the Peer Group (if available) or Peer Universe if there was no separate Peer Group.
 
The Independent Board Members noted that the Premium Income Fund, the Insured Premium Income Fund and the Insured Premium Income Fund 2 had higher net management fees than their peer average and a slightly higher or higher net expense ratio compared to their peer average. They observed that each of the other Funds had net management fees and net expense ratios below or in line with their peer averages.
 
Based on their review of the fee and expense information provided, the Independent Board Members determined that each Fund’s management fees were reasonable in light of the nature, extent and quality of services provided to the Fund.
 
2. Comparisons with the Fees of Other Clients
The Independent Board Members further reviewed information regarding the nature of services and fee rates offered by the Advisor to other clients, including municipal separately managed accounts and passively managed exchange traded funds (ETFs) sub-advised by the Advisor. In evaluating the comparisons of fees, the Independent Board Members noted that the fee rates charged to the Funds and other clients vary, among other things, because of the different services involved and the additional regulatory and compliance requirements associated with registered investment companies, such as the Funds. Accordingly, the Independent Board Members considered the differences in the product types, including, but not limited to, the services provided, the structure and operations, product distribution and costs thereof, portfolio investment policies, investor profiles, account sizes and regulatory requirements. The Independent Board Members noted, in particular, that the range of services provided to the Funds (as discussed above) is much more extensive than that provided to separately managed accounts. Given the inherent differences in the products, particularly the extensive services provided to the Funds, the Independent Board Members believe such facts justify the different levels of fees.
 
In considering the fees of the Sub-Advisor, the Independent Board Members also considered the pricing schedule or fees that the Sub-Advisor charges for similar investment management services for other Nuveen funds.
 
3. Profitability of Fund Advisers
In conjunction with its review of fees, the Independent Board Members also considered the profitability of Nuveen for its advisory activities (which incorporated Nuveen’s wholly-owned affiliated sub-advisers) and its financial condition. The Independent Board Members reviewed the revenues and expenses of Nuveen’s advisory activities for the last two years, the allocation methodology used in preparing the profitability data and an analysis of the key drivers behind the changes in revenues and expenses that impacted profitability in 2010. The Independent Board Members noted this information supplemented the profitability information requested and received during the year to help keep them apprised of developments affecting profitability (such as changes in fee waivers and expense reimbursement commitments). In this regard, the Independent Board Members
 
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  noted that they have an Independent Board Member serve as a point person to review and keep them apprised of changes to the profitability analysis and/or methodologies during the year. The Independent Board Members also considered Nuveen’s revenues for advisory activities, expenses, and profit margin compared to that of various unaffiliated management firms with similar amounts of assets under management and relatively comparable asset composition prepared by Nuveen.
 
In reviewing profitability, the Independent Board Members recognized the subjective nature of determining profitability which may be affected by numerous factors including the allocation of expenses. Further, the Independent Board Members recognized the difficulties in making comparisons as the profitability of other advisers generally is not publicly available and the profitability information that is available for certain advisers or management firms may not be representative of the industry and may be affected by, among other things, the adviser’s particular business mix, capital costs, types of funds managed and expense allocations. Notwithstanding the foregoing, the Independent Board Members reviewed Nuveen’s methodology and assumptions for allocating expenses across product lines to determine profitability. In reviewing profitability, the Independent Board Members recognized Nuveen’s investment in its fund business. Based on their review, the Independent Board Members concluded that the Advisor’s level of profitability for its advisory activities was reasonable in light of the services provided.
 
In evaluating the reasonableness of the compensation, the Independent Board Members also considered other amounts paid to a Fund Adviser by the Funds as well as any indirect benefits (such as soft dollar arrangements, if any) the Fund Adviser and its affiliates receive, or are expected to receive, that are directly attributable to the management of the Funds, if any. See Section E below for additional information on indirect benefits a Fund Adviser may receive as a result of its relationship with the Funds. Based on their review of the overall fee arrangements of each Fund, the Independent Board Members determined that the advisory fees and expenses of the respective Fund were reasonable.
 
D. Economies of Scale and Whether Fee Levels Reflect These Economies of Scale
With respect to economies of scale, the Independent Board Members have recognized the potential benefits resulting from the costs of a fund being spread over a larger asset base, although economies of scale are difficult to measure and predict with precision, particularly on a fund-by-fund basis. One method to help ensure the shareholders share in these benefits is to include breakpoints in the advisory fee schedule. Generally, management fees for funds in the Nuveen complex are comprised of a fund-level component and a complex-level component, subject to certain exceptions. Accordingly, the Independent Board Members reviewed and considered the applicable fund-level breakpoints in the advisory fee schedules that reduce advisory fees as asset levels increase. Further, the Independent Board Members noted that although closed-end funds may from time-to-time make additional share offerings, the growth of their assets will occur primarily through the appreciation of such funds’ investment portfolio.
 
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Annual Investment Management Agreement
Approval Process (Unaudited) (continued)
 
In addition to fund-level advisory fee breakpoints, the Board also considered the Funds’ complex-wide fee arrangement. Pursuant to the complex-wide fee arrangement, the fees of the funds in the Nuveen complex are generally reduced as the assets in the fund complex reach certain levels. The complex-wide fee arrangement seeks to provide the benefits of economies of scale to fund shareholders when total fund complex assets increase, even if assets of a particular fund are unchanged or have decreased. The approach reflects the notion that some of Nuveen’s costs are attributable to services provided to all its funds in the complex and therefore all funds benefit if these costs are spread over a larger asset base.
 
Based on their review, the Independent Board Members concluded that the breakpoint schedules and complex-wide fee arrangement were acceptable and reflect economies of scale to be shared with shareholders when assets under management increase.
 
E. Indirect Benefits
In evaluating fees, the Independent Board Members received and considered information regarding potential “fall out” or ancillary benefits the respective Fund Adviser or its affiliates may receive as a result of its relationship with each Fund. In this regard, the Independent Board Members considered any revenues received by affiliates of the Advisor for serving as agent at Nuveen’s trading desk and as co-manager in initial public offerings of new closed-end funds.
 
In addition to the above, the Independent Board Members considered whether the Fund Advisers received any benefits from soft dollar arrangements whereby a portion of the commissions paid by a Fund for brokerage may be used to acquire research that may be useful to the Fund Adviser in managing the assets of the Funds and other clients. The Independent Board Members recognized that each Fund Adviser has the authority to pay a higher commission in return for brokerage and research services if it determines in good faith that the commission paid is reasonable in relation to the value of the brokerage and research services provided. Nevertheless, the Independent Board Members noted that commissions are generally not paid in connection with municipal securities transactions typically executed on a principal basis.
 
Based on their review, the Independent Board Members concluded that any indirect benefits received by a Fund Adviser as a result of its relationship with the Funds were reasonable and within acceptable parameters.
 
F. Other Considerations
The Independent Board Members did not identify any single factor discussed previously as all-important or controlling. The Board Members, including the Independent Board Members, unanimously concluded that the terms of each Advisory Agreement are fair and reasonable, that the respective Fund Adviser’s fees are reasonable in light of the services provided to each Fund and that the Advisory Agreements be renewed.
 
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Reinvest Automatically,
Easily and Conveniently
 
Nuveen makes reinvesting easy. A phone call is all it takes to set up your reinvestment account.
 
Nuveen Closed-End Funds Automatic Reinvestment Plan
 
Your Nuveen Closed-End Fund allows you to conveniently reinvest 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 compounding. Just like distributions in cash, there may be times when income or capital gains taxes may be payable on 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 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 greater of the net asset value or 95% of 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. If the Plan Agent begins purchasing Fund shares on the open market while shares are trading below net asset value, but the Fund’s shares subsequently trade at or above their net asset value before the Plan Agent is able to complete its purchases, the Plan Agent may cease open-market purchases and may invest the uninvested portion of the distribution in newly-issued Fund shares at a price equal to the greater of the shares’ net asset value or 95% of the shares’ market value on the last business day immediately prior to the purchase date. Distributions received to purchase shares in the open market will normally be invested shortly after the distribution payment date. No interest will be paid on distributions awaiting reinvestment. Because the market price of the shares may increase before purchases are completed, the average purchase price per share may
 
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Reinvest Automatically,
Easily and Conveniently (continued)
 
exceed the market price at the time of valuation, resulting in the acquisition of fewer shares than if the 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.
 
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 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.
 
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Glossary of Terms
Used in this Report
   
Auction Rate Bond: An auction rate bond is a security whose interest payments are adjusted periodically through an auction process, which process typically also serves as a means for buying and selling the bond. Auctions that fail to attract enough buyers for all the shares offered for sale are deemed to have “failed,” with current holders receiving a formula-based interest rate until the next scheduled auction.
   
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 market-value-weighted average of the effective maturity dates of the individual securities including cash. In the case of a bond that has been advance-refunded to a call date, the effective maturity is the date on which the bond is scheduled to be redeemed using the proceeds of an escrow account. In most other cases the effective maturity is the stated maturity date of the security.
   
Effective Leverage: Effective leverage is a Fund’s effective economic leverage, and includes both structural leverage and the leverage effects of certain derivative investments in the Fund’s portfolio. Currently, the leverage effects of Tender Option Bond (TOB) inverse floater holdings are included in effective leverage values, in addition to any structural leverage.
   
Inverse Floaters: Inverse floating rate securities, also known as inverse floaters, are created by depositing a municipal bond, typically with a fixed interest rate, into a special purpose trust created by a broker-dealer. This trust, in turn, (a) issues floating rate certificates typically paying short-term tax-exempt interest rates to third parties in amounts equal to some fraction of the deposited bond’s par amount or market value, and (b) issues an inverse floating rate certificate (sometimes referred to as an “inverse floater”) to an investor (such as a Fund) interested in gaining investment exposure to a long-term municipal bond. The income received by the holder of the inverse floater varies inversely with the short-term rate paid to the floating rate certificates’ holders, and in most circumstances the holder of the inverse floater bears substantially all of the underlying bond’s downside investment risk. The holder of the inverse floater typically also benefits disproportionately from any potential appreciation of the underlying bond’s value. Hence, an inverse floater essentially represents an investment in the underlying bond on a leveraged basis.
   
Leverage: Using borrowed money to invest in securities or other assets.

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Glossary of Terms
Used in this Report (continued)
   
Leverage-Adjusted Duration: Duration is a measure of the expected period over which a bond’s principal and interest will be paid, and consequently is a measure of the sensitivity of a bond’s or bond Fund’s value to changes when market interest rates change. Generally, the longer a bond’s 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.
   
Lipper California Municipal Debt Classification Average: Calculated using the returns of all closed-end funds in this category for each period as follows: 6-month, 24 funds; 1-year, 24 funds; 5-year, 24 funds; and 10-year, 12 funds. Lipper returns account for the effects of management fees and assume reinvestment of dividends, but do not reflect any applicable sales charges. The Lipper average is not available for direct investment.
   
Lipper Single-State Insured Municipal Debt Classification Average: Calculated using the returns of all closed-end funds in this category for each period as follows: 6-month, 44 funds; 1-year, 44 funds; 5-year, 44 funds; and 10-year, 24 funds. Lipper returns account for the effects of management fees and assume reinvestment of dividends, but do not reflect any applicable sales charges. The Lipper average is not available for direct investment.
   
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): The net market value of all securities held in a portfolio.
   
Net Asset Value (NAV) Per Share: The market value of one share of a mutual fund or closed-end fund. For a Fund, the NAV is calculated daily by taking the Fund’s total assets (securities, cash, and accrued earnings), subtracting the Fund’s liabilities, and dividing by the number of shares outstanding.
   
Pre-Refunding: Pre-Refunding, also known as advanced refundings or refinancings, is a procedure used by state and local governments to refinance municipal bonds to lower interest expenses. The issuer sells new bonds with a lower yield and uses the proceeds to buy U.S. Treasury securities, the interest from which is used to make payments on the higher-yielding bonds. Because of this collateral, pre-refunding generally raises a bond’s credit rating and thus its value.
   
Standard & Poor’s (S&P) California Municipal Bond Index: An unleveraged, market value-weighted index designed to measure the performance of the tax-exempt, investment-grade California municipal bond market. The index returns assume reinvestment of dividends but do not reflect any applicable sales charges. You cannot invest directly in an index.
   
Standard & Poor’s (S&P) Insured National Municipal Bond Index: An unleveraged, market value-weighted index designed to measure the performance of the insured segment of the U.S. municipal bond market. The index returns assume reinvestment of dividends but do not reflect any applicable sales charges. You cannot invest directly in an index.

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Standard & Poor’s (S&P) National Municipal Bond Index: An unleveraged, market value-weighted index designed to measure the performance of the tax-exempt, investment-grade U.S. municipal bond market. The index returns assume reinvestment of dividends but do not reflect any applicable sales charges. You cannot invest directly in an index.
   
Structural Leverage: Structural Leverage consists of preferred shares or debt issued by the fund. Both of these are part of a fund’s capital structure. Structural leverage is sometimes referred to as “‘40 Act Leverage” and is subject to asset coverage limits set in the Investment Company Act of 1940.
   
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.
   
Zero Coupon Bond: A zero coupon bond does not pay a regular interest coupon to its holders during the life of the bond. Tax-exempt income to the holder of the bond comes from accretion of the difference between the original purchase price of the bond at issuance and the par value of the bond at maturity and is effectively paid at maturity. The market prices of zero coupon bonds generally are more volatile than the market prices of bonds that pay interest periodically.

Nuveen Investments
 
119

 
 

 
Notes
 
120
 
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Notes
 
Nuveen Investments
 
121

 
 

 
Notes
 
122
 
Nuveen Investments
 
 
 

 
 
Other Useful Information
 
Board of
Directors/Trustees
John P. Amboian
Robert P. Bremner
Jack B. Evans
William C. Hunter
David J. Kundert
William J. Schneider
Judith M. Stockdale
Carole E. Stone
Virginia L. Stringer
Terence J. Toth
 
Fund Manager
Nuveen Fund Advisors, Inc.
333 West Wacker Drive
Chicago, IL 60606
 
Custodian
State Street Bank
& Trust Company
Boston, MA
 
Transfer Agent and
Shareholder Services
State Street Bank &
Trust Company
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
 
Quarterly Portfolio of Investments and Proxy Voting Information
 
You may obtain (i) each Fund’s quarterly portfolio of investments, (ii) information regarding how each Fund voted proxies relating to portfolio securities held during the most recent twelve-month period ended June 30, and (iii) a description of the policies and procedures that each Fund used to determine how to vote proxies relating to portfolio securities 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 (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 100 F Street NE, Washington, D.C. 20549.
 
CEO Certification Disclosure
 
Each Fund’s Chief Executive Officer (CEO) has submitted to the New York Stock Exchange (NYSE) the annual CEO certification as required by Section 303A.12(a) of the NYSE Listed Company Manual.
 
Each Fund has filed with the SEC the certification of its Chief Executive Officer and Chief Financial Officer required by Section 302 of the Sarbanes-Oxley Act.
 
Common and Preferred Share Information
 
Each Fund intends to repurchase and/or redeem shares of its own common and/or auction rate preferred stock in the future at such times and in such amounts as is deemed advisable. During the period covered by this report, the Funds repurchased and/or redeemed shares of their common and/or auction rate preferred stock as shown in the accompanying table.
       
Fund
Common Shares
Repurchased
Preferred Shares
Redeemed
 
NPC
 
NCL
 
NCU
 
NAC
5,421
 
NVX
1,598
 
NZH
2,780
 
NKL
4,150
 
NKX
 
 
Any future repurchases will be reported to shareholders in the next annual or semi-annual report.
 
Nuveen Investments
 
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Nuveen Investments:
Serving Investors for Generations
 
Since 1898, financial advisors and their clients have relied on Nuveen Investments to provide dependable investment solutions through continued adherence to proven, long-term investing principles. Today, we offer a range of high quality equity and fixed-income solutions designed to be integral components of a well-diversified core portfolio.
 
Focused on meeting investor needs.
 
Nuveen Investments is a global investment management firm that seeks to help secure the long-term goals of institutions and high net worth investors as well as the consultants and financial advisors who serve them. We market our growing range of specialized investment solutions under the high-quality brands of HydePark, NWQ, Nuveen Asset Management, Santa Barbara, Symphony, Tradewinds and Winslow Capital. In total, Nuveen Investments managed approximately $210 billion of assets as of June 30, 2011.
 
Find out how we can help you.
 
To learn more about how the products and services of Nuveen Investments may be able to help you meet your financial goals, talk to your financial advisor, or call us at (800) 257-8787. Please read the information provided carefully before you invest. Investors should consider the investment objective and policies, risk considerations, charges and expenses of any investment carefully. Where applicable, be sure to obtain a prospectus, which contains this and other relevant information. To obtain 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.
 
Learn more about Nuveen Funds at: www.nuveen.com/cef
 

     
 
Nuveen makes things e-simple.
 
     
 
It only takes a minute to sign up for e-Reports. Once enrolled, you’ll receive an e-mail as soon as your Nuveen 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.
 
     
 
Free e-Reports right to your e-mail!
 
     
 
www.investordelivery.com
 
 
If you receive your Nuveen Fund distributions and statements from your financial advisor or brokerage account.
 
     
 
OR
 
     
 
www.nuveen.com/accountaccess
 
 
If you receive your Nuveen Fund distributions and statements directly from Nuveen.
 
     
 
Distributed by
Nuveen Securities, LLC
333 West Wacker Drive
Chicago, IL 60606
www.nuveen.com
 
ESA-B-0811D

 
 

 
 
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.

(a) See Portfolio of Investments in Item 1.

(b) Not applicable.

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 of Directors or Trustees 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: See 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: See 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 Tax-Free Advantage Municipal Fund

By (Signature and Title) /s/ Kevin J. McCarthy
Kevin J. McCarthy
(Vice President and Secretary)

Date: November 7, 2011

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: November 7, 2011

By (Signature and Title) /s/ Stephen D. Foy
Stephen D. Foy
Vice President and Controller
 (principal financial officer)

Date: November 7, 2011