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 811-10197
Nuveen California Dividend Advantage Municipal Fund 2
(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 29
Date of reporting period: February 29, 2016
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
|
|
Fund Leverage
|
10
|
|
Common Share Information
|
12
|
|
Risk Considerations
|
14
|
|
Performance Overview and Holding Summaries
|
15
|
|
Shareholder Meeting Report
|
21
|
|
Report of Independent Registered Public Accounting Firm
|
23
|
|
Portfolios of Investments
|
24
|
|
Statement of Assets and Liabilities
|
77
|
|
Statement of Operations
|
79
|
|
Statement of Changes in Net Assets
|
81
|
|
Statement of Cash Flows
|
83
|
|
Financial Highlights
|
84
|
|
Notes to Financial Statements
|
92
|
|
Additional Fund Information
|
106
|
|
Glossary of Terms Used in this Report
|
107
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|
Reinvest Automatically, Easily and Conveniently
|
109
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|
Board Members & Officers
|
110
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|
Nuveen Investments
|
3
|
Chairman's Letter to Shareholders
Dear Shareholders,
The financial markets saw an increase in volatility over the past year. Global economic growth has continued to look fragile, led by China's ongoing slowdown and stagnant growth in Europe and Japan. By contrast, the U.S. economy's modest recovery stayed on pace. However, concerns about downside risks to U.S. economic growth were heightened in early 2016 amid a weak global growth outlook and churning stock markets. In addition to the challenging economic backdrop, the persistent decline of oil prices and a rally in the U.S. dollar dampened U.S. corporate earnings growth, further contributing to an uncertain outlook.
For most of 2015, the U.S. Federal Reserve postponed the first increase to its main policy interest rate, which tended to boost risky assets and weigh on longer-term bond yields at points throughout the year. However, volatility rose in the late spring amid Greece's turbulent negotiations with its European Union creditors. Not soon after, China's stock market crashed amid worries about its decelerating economy and a loss of confidence in its policy makers. Conditions turned more favorable in the fall, as the Fed delayed its rate hike again in October, the European Central Bank appeared poised for further easing and China administered another round of stimulus measures. By the time the Fed announced the rate hike in December, the move was widely expected and had very little market impact.
Although volatility spiked in early 2016, conditions have generally improved since mid-February 2016. Global growth expectations remain subdued, but investors have gained more confidence that the Fed's interest rate increases will be gradual, oil prices appear more stable, the U.S. dollar has weakened and the U.S. economy continues to look fairly resilient. Consumer spending, which represents roughly two-thirds of the economy, continues to be supported by the meaningful improvement in the labor market, wage growth and cheaper gas prices.
The global markets may continue seeing bouts of market turbulence this year. While short-term volatility can be uncomfortable for investors, these periods can also provide opportunities. The experienced investment professionals working for you at Nuveen continue to seek upside potential and manage downside risks, whether markets are rising or falling. We also encourage you to contact your financial advisor, who can help you develop a plan to weather short-term price swings, while remaining consistent with your investment goals, time horizon and risk tolerance.
On behalf of the other members of the Nuveen Fund Board, we look forward to continuing to earn your trust in the months and years ahead.
Sincerely,
William J. Schneider
Chairman of the Board
April 25, 2016
Chairman of the Board
April 25, 2016
|
4
|
Nuveen Investments
|
Portfolio Manager's Comments
Nuveen California Municipal Value Fund, Inc. (NCA)
Nuveen California Municipal Value Fund 2 (NCB)
Nuveen California AMT-Free Municipal Income Fund (NKX)
Nuveen California Dividend Advantage Municipal Fund (NAC)
Nuveen California Dividend Advantage Municipal Fund 2 (NVX)
Nuveen California Dividend Advantage Municipal Fund 3 (NZH)
Nuveen California Municipal Value Fund 2 (NCB)
Nuveen California AMT-Free Municipal Income Fund (NKX)
Nuveen California Dividend Advantage Municipal Fund (NAC)
Nuveen California Dividend Advantage Municipal Fund 2 (NVX)
Nuveen California Dividend Advantage Municipal Fund 3 (NZH)
These Funds feature portfolio management by Nuveen Asset Management, LLC, an affiliate of Nuveen Investments, Inc. Portfolio manager Scott R. Romans, PhD, reviews U.S. economic and municipal market conditions at the national and state levels, key investment strategies and the twelve-month performance of these Nuveen California Municipal Funds. Scott has managed NCA, NKX, NAC, NVX and NZH since 2003 and NCB since its inception in 2009.
What factors affected the U.S. economy and the national municipal bond market during the twelve-month reporting period ended February 29, 2016?
The U.S. economy grew at an overall moderate pace during the twelve-month reporting period. Harsh winter weather and a West coast port strike weighed on growth in the first quarter of 2015, but those factors proved temporary. Rebounding economic activity in the second quarter was followed by a mediocre advance in the latter half of the year. Real gross domestic product (GDP), which is the value of the goods and services produced by the nation's economy less the value of the goods and services used up in production, adjusted for price changes, increased at an annual rate of 1.4% in the fourth quarter of 2015, as reported by the "third" estimate of the Bureau of Economic Analysis, down from 2.0% in the third quarter.
The labor and housing markets were among the bright spots in the economy during the reporting period, as both showed steady improvement. As reported by the Bureau of Labor Statistics, the unemployment rate fell to 4.9% in February 2016 from 5.5% in February 2015, and job gains averaged slightly above 200,000 per month for the past twelve months. The S&P/Case-Shiller U.S. National Home Price Index, which covers all nine U.S. census divisions, recorded a 5.4% annual gain in January 2016 (most recent data available at the time this report was prepared). The 10-City and 20-City Composites reported year-over-year increases of 5.1% and 5.7%, respectively.
With GDP growth averaging around 2% for the previous four quarters, the U.S. economic recovery continued to underwhelm. Consumers, whose purchases comprise the largest component of the U.S. economy, benefited from lower gasoline prices and an improving jobs market. Pessimism about the economy's future and lackluster wage growth likely contributed to consumers' somewhat muted spending. The sharp decline in energy prices and tepid wage growth also weighed on inflation during this reporting
|
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 (S&P), Moody's Investors Service, Inc. (Moody's) or Fitch, Inc. (Fitch). 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. Certain bonds backed by U.S. government or agency securities are regarded as having an implied rating equal to the rating of such securities. Holdings designated N/R are not rated by these national rating agencies.
Bond insurance guarantees only the payment of principal and interest on the bond when due, and not the value of the bonds themselves, which will fluctuate with the bond market and the financial success of the issuer and the insurer. Insurance relates specifically to the bonds in the portfolio and not to the share prices of a Fund. No representation is made as to the insurers' ability to meet their commitments.
Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this section.
|
Nuveen Investments
|
5
|
Portfolio Manager's Comments (continued)
period. The Consumer Price Index CPI rose 1.0% over the twelve-month period ended February 2016 on a seasonally adjusted basis, as reported by the U.S. Bureau of Labor Statistics. The core CPI (which excludes food and energy) increased 2.3% during the same period, the largest twelve-month gain since May 2012 and slightly above the Fed's unofficial longer term inflation objective of 2.0%.
Business investment was also rather restrained. Corporate earnings growth slowed during 2015, reflecting an array of factors ranging from weakening demand amid sluggish U.S. and global growth to the impact of falling commodity prices and a strong U.S. dollar. Energy, materials and industrials companies were hit particularly hard by the downturn in natural resource prices, as well as the expectation of rising interest rates, which would make their debts more costly to service. With demand waning, companies, especially in the health care and technology sectors, looked to consolidations with rivals as a way to boost revenues. Merger and acquisition deals, both in the U.S. and globally, reached record levels in the calendar year 2015.
Although the current expansion continued to look subpar relative to past recoveries, the U.S. Federal Reserve (Fed) believed the economy was strong enough to begin the withdrawal of its stimulus policies. After winding down its bond buying program, known as quantitative easing, in October 2014, the Fed began telegraphing its intention to raise the target federal funds rate some time in 2015. The Fed had held the fed funds rate near zero since December 2008. However, the timing of its first rate hike was uncertain, particularly as the inflation rate stayed stubbornly low and signs of global economic weakness, notably from China, merited caution.
After delaying the rate change at each prior meeting in 2015, the Fed announced in December 2015 that it would raise its main policy interest rate by 0.25%. The news had a relatively muted impact on the financial markets, as the move was widely expected. Although the Fed continued to emphasize future rate increases would be gradual, uncertainties lingered. Given the fragility of the global economy and concerns about the U.S.'s lackluster growth, the Fed seemed more than likely to remain on hold in the near term. Not surprisingly, the Fed kept its target rate unchanged at its January policy meeting.
In the broad municipal bond market, yields ended the twelve-month reporting period slightly below where they started, although their downward path was not a straight line. For most of the period, the generally improved condition of the U.S. economy and expectation of rising interest rates propelled municipal bond yields higher. However, after the Fed's first rate hike, subsequent rate hikes seemed unlikely in the near future as the pace of the U.S. economic recovery remained below average and weakness lingered abroad, especially in Europe and China. This helped renew demand for municipal bonds, bolstering prices and weighing on yields (as bond prices and yields move in opposite directions) in the final months of the reporting period.
The municipal market's supply-demand balance was generally favorable over this reporting period. Issuance was unusually strong at the beginning of 2015, fueling concerns about potential oversupply conditions. Over the twelve months ended February 29, 2016, municipal bond issuance nationwide totaled $349.2 billion, an increase of 9.8% from the issuance for the twelve-month period ended February 28, 2015. To articulate, gross municipal bond nationwide issuance is up. The surge in gross issuance is due mostly to increased refunding deals as issuers have been actively and aggressively refunding their outstanding debt given the very low interest rate environment. In these transactions the issuers are issuing new bonds and taking the bond proceeds and redeeming (calling) old bonds. These refunding transactions have ranged from 40%-60% of total issuance over the past few years. Thus, the net issuance (all bonds issued less bonds redeemed) is actually much lower than the gross issuance. In fact, the total municipal bonds outstanding has actually declined in each of the past four calendar years. So, the gross is surging, but the net is not and this has been an overall positive technical factor on municipal bond investment performance.
At the same time, regulatory changes, increased risk aversion and expectations for rising interest rates have encouraged bond dealers, typically brokers and banks, to reduce the size of their inventories in recent years. By holding smaller amounts of bonds on their books, dealers seek to mitigate their exposure to bonds that could potentially be worth less or be more difficult to sell in the future. Banks have reduced their participation in the markets in order to hold fewer bonds on their balance sheets. As a result, there has been less liquidity in the marketplace, which contributed to periods of increased price volatility.
|
6
|
Nuveen Investments
|
How were the economic and market environments in California during the twelve-month reporting period ended February 29, 2016?
California's economy is the largest in the United States and ranks eighth in the world according to the International Monetary Fund. Job growth continues to increase faster than the nation, driven by high technology, international trade and tourism but also supplemented by better residential construction and real estate conditions. As a result, the state's unemployment rate improved to 5.5% as of February 2016, down from 6.7% the year prior and the gap between the state and the nation's 4.9% unemployment rate is narrowing. According to the S&P/Case-Shiller Index, home prices in San Diego, Los Angeles and San Francisco rose 6.9%, 6.9% and 10.5%, respectively, over the twelve months ended January 2016 (most recent data available at the time this report was prepared) compared with an average increase of 5.4% nationally. California entered its fifth straight year of drought conditions resulting in the Governor issuing mandatory water cuts. El Nino storms since December 2015 have provided some relief, but a full recovery from the drought will require more rain and snowfall. Agriculture is exempt from the mandate. Although farms consume 80% of California's water, they only generate 2% of the state's economic activity. The most significant economic risk would be a slowdown in California's home building industry, which is a major part of the state's economy. In looking at the impact of the drought more broadly, the non-partisan Legislative Analyst Office says the drought is not likely to have a significant effect on California's economy or state government revenues in the short term.
The enacted Fiscal 2016 budget is 0.8% higher than the revised estimate for Fiscal Year 2015. Strong revenue growth due to a recovering economy and the passage of Proposition 30 (increases state sales and personal income taxes temporarily) have aided in the State's fiscal recovery. For Fiscal Year 2016-2017, the proposed General Fund Governor's Budget totals $122.6 billion. The proposed budget echoes Governor Brown's recurring theme since he took office in 2011 to maintain a cautious approach to managing the state's finances. The proposal, which after meeting the constitutional requirements for reserve deposits and increase spending on education, calls for an extra deposit into the Rainy Day Fund and one-time infrastructure spending from discretionary resources. On July 2, 2015, S&P upgraded its rating on California general obligation (GO) debt to "AA-/STABLE" from "A+/CreditWatch Positive." Moody's upgraded the State GO to Aa3 with stable outlook from A1 in June 2014. During the twelve months ended February 29, 2016, municipal issuance in California totaled $52.9 billion, an 8% gross issuance increase over the prior twelve months. For this reporting period, California was the largest state issuer in the nation, representing approximately 13.4% of total issuance nationwide.
What key strategies were used to manage these California Funds during the twelve-month reporting period ended February 29, 2016?
The broad municipal bond market enjoyed positive performance during the twelve-month reporting period overall. In general, California municipal bonds outpaced the overall municipal market return for the reporting period. California's economy continued to improve, as a declining unemployment rate and legislative changes improved the state's overall financial health and credit conditions. Additionally, investors seeking greater yield potential continued to bolster demand for California municipal bonds, which helped credit spreads contract during this reporting period.
We continued to take a bottom-up approach to discovering sectors that appeared undervalued as well as individual credits that we believed had the potential to perform well over the long term. Our trading activity continued to focus on pursuing the Funds' investment objectives. Generally speaking, throughout this reporting period, the Funds maintained their overall positioning strategies in terms of duration and yield curve positioning, credit quality exposures and sector allocations. We've also continued to be more cautious in selecting individual securities. As investor demand for municipal securities has increased and created a slight supply-demand imbalance, we've started to see underwriters bring new issues to market that are structured with terms more favorable to the issuer and perhaps less advantageous to the investor than in the recent past. We believe this shift in the marketplace merits extra vigilance on our part to ensure that every credit considered for the portfolio offers adequate reward potential for the level of risk to the bondholder. In cases where our convictions have been less certain, we've sought compensation for the additional risk or have passed on the deal all together.
|
Nuveen Investments
|
7
|
Portfolio Manager's Comments (continued)
To keep the Funds fully invested, we continued to focus on purchasing bonds in areas of the market that we expected to perform well as the economy continued to improve. We emphasized intermediate and longer maturities, lower rated credits and sectors offering higher yields. To fund these purchases, we generally reinvested the proceeds from called and maturing bonds. In some cases, we sold bonds that we believed had deteriorating fundamentals or could be traded for a better relative value, as well as selling short-dated, higher quality issues that we tend to hold over short timeframes as a source of liquidity.
We continued to find opportunities to purchase bonds in both the primary and secondary markets that helped keep the Funds fully invested. Overall, our emphasis in purchase activity was on relative value and credit quality, rather than sector. We found the most relative value in the A rated category, which included additions in the higher education and health care sectors, as these sectors tend to have a higher proportion of A rated credits. Especially in the primary market, A rated bonds featured better pricing relative to BBB and AA rated credits.
We continued to be more selective within the lower credit quality segments of the market (BBB and below investment grade), as yield spreads on lower rated bonds began to tighten. For example, we participated in some newly issued land-secured bonds that we believe offered relative values that were especially compelling. We also maintained the Funds' overweight tobacco exposures. Tobacco bonds continued to offer attractive yields for what we believe is a relatively moderate level of credit risk and good relative value, even after the sector's recently strong performance. In some of the Funds, we sold tobacco bonds to buy structures with similar income distribution profiles but less risk.
In addition, we continued to replace some of the 4% and 5% coupon bonds that had been bought at significant premiums for similar structures offering better relative value. These transactions helped bolster the Funds' income distribution capabilities, as well as improve the tax efficiency of the overall portfolios.
One of the shorter-term, more tactical strategies we implemented during this reporting period included increasing exposure to higher grade, higher liquidity bonds (primarily AA rated). These positions helped keep the Funds fully invested and were intended as short-term holdings that could be easily sold when proceeds were needed to fund a new purchase.
As of February 29, 2016, all six of these Funds continued to use inverse floating rate securities. We employ inverse floaters for a variety of reasons, including duration management, income enhancement and total return enhancement.
How did the Funds perform during the twelve-month reporting period ended February 29, 2016?
The tables in each Fund's Performance Overview and Holding Summaries section of this report provide the Funds' total returns for the one-year, five-year, ten-year and/or since inception periods ended February 29, 2016. Each Fund's returns on common share net asset value (NAV) are compared with the performance of corresponding market indexes and Lipper classification average.
For the twelve months ended February 29, 2016, the total returns at common share NAV for all six of these Funds exceeded the return for the S&P Municipal Bond California Index as well as that for the national S&P Municipal Bond Index. For this same period, NKX, NAC, NVX and NZH outperformed the average return for the Lipper California Municipal Debt Funds Classification Average, while NCA and NCB trailed this Lipper California average.
The main contributor to the Funds' relative performance during this reporting period was yield curve and duration positioning. We continued to overweight the longer parts of the yield curve with corresponding underweights to the shorter end of the curve, which resulted in longer durations than the municipal market in general. This positioning was advantageous in this reporting period as intermediate- and longer-dated bonds generally outperformed shorter-dated bonds.
The Funds' credit quality exposures also contributed positively, although to a lesser extent than yield curve and duration positioning. Lower rated municipal bonds outperformed higher-rated bonds during this reporting period, as the low interest rate environment continued to propel investor demand for yield. The Funds were positioned with overweight allocations to the outperforming A, BBB, below investment grade and non-rated categories and with underweight allocations to the underperforming AA and AAA rated categories. These tilts were advantageous to performance during this reporting period.
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8
|
Nuveen Investments
|
An Update Involving Puerto Rico
As noted in the Funds' previous shareholder reports, we continue to monitor situations in the broader municipal market for any impact on the Funds' holdings and performance: the ongoing economic problems of Puerto Rico is one such case. Puerto Rico's continued economic weakening, escalating debt service obligations, and long-standing inability to deliver a balanced budget led to multiple downgrades on its debt over the past two years. Puerto Rico has warned investors since 2014 that the island's debt burden may be unsustainable and the Commonwealth has been exploring various strategies to deal with this burden, including Chapter 9 bankruptcy, which is currently not available by law.
In terms of Puerto Rico holdings, shareholders should note that NVX had 1.71%, NCB had no exposure and the other four Funds had allocations of less than 1% at the end of the reporting period, all of which are insured or escrowed to maturity. The Puerto Rico credits offered higher yields, added diversification and triple exemption (i.e., exemption from most federal, state and local taxes). Puerto Rico general obligation debt is currently rated Caa2/CC/CC (below investment grade) by Moody's, S&P and Fitch, respectively, with negative outlooks.
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Nuveen Investments
|
9
|
Fund Leverage
IMPACT OF THE FUNDS' LEVERAGE STRATEGY ON PERFORMANCE
One important factor impacting the returns of the Funds relative to their comparative benchmarks was the Funds' use of leverage through their issuance of preferred shares and/or investments in inverse floating rate securities, which represent leveraged investments in underlying bonds. NCA and NCB do not use regulatory leverage. The Funds use leverage because our research has shown that, over time, leveraging provides opportunities for additional income, particularly in the recent market environment where short-term market rates are at or near historical lows, meaning that the short-term rates the Fund has been paying on its leveraging instruments have been much lower than the interest the Fund has been earning on its portfolio of long-term bonds that it has bought with the proceeds of that leverage. However, use of leverage also can expose the Fund to additional price volatility. When a Fund uses leverage, the Fund will experience a greater increase in its net asset value if the municipal bonds acquired through the use of leverage increase in value, but it will also experience a correspondingly larger decline in its net asset value if the bonds acquired through leverage decline in value, which will make the Fund's net asset value more volatile, and its total return performance more variable over time. In addition, income in levered funds will typically decrease in comparison to unlevered funds when short-term interest rates increase and increase when short-term interest rates decrease. Leverage had a positive impact on the performance of the Funds over this reporting period. For NCA, the impact was less due to the low level of leverage used in the Fund.
As of February 29, 2016, the Funds' percentages of leverage are as shown in the accompanying table.
|
NCA
|
NCB
|
NKX
|
NAC
|
NVX
|
NZH
|
||
|
Effective Leverage*
|
1.58%
|
9.56%
|
32.36%
|
34.61%
|
31.30%
|
37.33%
|
|
|
Regulatory Leverage*
|
0.00%
|
0.00%
|
29.81%
|
28.86%
|
29.25%
|
30.75%
|
|
*
|
Effective leverage is a Fund's effective economic leverage, and includes both regulatory leverage and the leverage effects of certain derivative and other investments in a Fund's portfolio that increase the Fund's investment exposure. Currently, the leverage effects of Tender Option Bond (TOB) inverse floater holdings are included in effective leverage values, in addition to any regulatory leverage. Regulatory leverage consists of preferred shares issued or borrowings of a Fund. Both of these are part of a Fund's capital structure. Regulatory leverage is subject to asset coverage limits set forth in the Investment Company Act of 1940.
|
|
10
|
Nuveen Investments
|
THE FUNDS' REGULATORY LEVERAGE
As of February 29, 2016, the following Funds have issued and outstanding Institutional MuniFund Term Preferred (iMTP) Shares and Variable Rate Demand Preferred (VRDP) Shares as shown in the accompanying table. As mentioned previously, NCA and NCB do not use regulatory leverage.
|
iMTP Shares
|
VRDP Shares
|
|||||||||||||||
|
Shares
|
Shares
|
|||||||||||||||
|
Issued at
|
Issued at
|
|||||||||||||||
|
Liquidation
|
Liquidation
|
|||||||||||||||
|
Series
|
Preference
|
Series
|
Preference
|
Total
|
||||||||||||
|
NKX
|
2018
|
$
|
36,000,000
|
2
|
$
|
35,500,000
|
||||||||||
|
3
|
$
|
42,700,000
|
||||||||||||||
|
4
|
$
|
109,000,000
|
||||||||||||||
|
5
|
$
|
104,400,000
|
||||||||||||||
|
$
|
36,000,000
|
$
|
291,600,000
|
$
|
327,600,000
|
|||||||||||
|
NAC
|
—
|
—
|
1
|
$
|
136,200,000
|
|||||||||||
|
2
|
$
|
91,000,000
|
||||||||||||||
|
3
|
$
|
49,800,000
|
||||||||||||||
|
4
|
$
|
105,600,000
|
||||||||||||||
|
5
|
$
|
158,900,000
|
||||||||||||||
|
6
|
$
|
158,100,000
|
||||||||||||||
|
$
|
699,600,000
|
$
|
699,600,000
|
|||||||||||||
|
NVX
|
—
|
—
|
1
|
$
|
98,000,000
|
$
|
98,000,000
|
|||||||||
|
NZH
|
—
|
—
|
1
|
$
|
160,000,000
|
$
|
160,000,000
|
|||||||||
Refer to Notes to Financial Statements, Note 4 — Fund Shares, Preferred Shares for further details on iMTP and VRDP Shares and each Fund's respective transactions.
|
Nuveen Investments
|
11
|
Common Share Information
COMMON SHARE DISTRIBUTION INFORMATION
The following information regarding the Funds' distributions is current as of February 29, 2016. Each Fund's distribution levels may vary over time based on each Fund's investment activity and portfolio investment value changes.
During the current reporting period, each Fund's distributions to common shareholders were as shown in the accompanying table.
|
Per Common Share Amounts
|
|||||||||||||||||||
|
Monthly Distributions (Ex-Dividend Date)
|
NCA
|
NCB
|
NKX
|
NAC
|
NVX
|
NZH
|
|||||||||||||
|
March 2015
|
$
|
0.0390
|
$
|
0.0650
|
$
|
0.0720
|
$
|
0.0800
|
$
|
0.0700
|
$
|
0.0670
|
|||||||
|
April
|
0.0390
|
0.0650
|
0.0720
|
0.0800
|
0.0700
|
0.0670
|
|||||||||||||
|
May
|
0.0390
|
0.0650
|
0.0720
|
0.0800
|
0.0700
|
0.0670
|
|||||||||||||
|
June
|
0.0390
|
0.0650
|
0.0720
|
0.0760
|
0.0700
|
0.0670
|
|||||||||||||
|
July
|
0.0390
|
0.0650
|
0.0720
|
0.0760
|
0.0700
|
0.0670
|
|||||||||||||
|
August
|
0.0390
|
0.0650
|
0.0720
|
0.0760
|
0.0700
|
0.0670
|
|||||||||||||
|
September
|
0.0390
|
0.0650
|
0.0720
|
0.0760
|
0.0675
|
0.0670
|
|||||||||||||
|
October
|
0.0390
|
0.0650
|
0.0720
|
0.0760
|
0.0675
|
0.0670
|
|||||||||||||
|
November
|
0.0390
|
0.0650
|
0.0720
|
0.0760
|
0.0675
|
0.0670
|
|||||||||||||
|
December
|
0.0390
|
0.0650
|
0.0720
|
0.0760
|
0.0675
|
0.0670
|
|||||||||||||
|
January
|
0.0390
|
0.0650
|
0.0720
|
0.0760
|
0.0675
|
0.0670
|
|||||||||||||
|
February 2016
|
0.0390
|
0.0650
|
0.0720
|
0.0760
|
0.0675
|
0.0670
|
|||||||||||||
|
Total Monthly Per Share Distributions
|
$
|
0.4680
|
$
|
0.7800
|
$
|
0.8640
|
$
|
0.9240
|
$
|
0.8250
|
$
|
0.8040
|
|||||||
|
Ordinary Income Distribution*
|
$
|
0.0038
|
$
|
0.0290
|
$
|
0.0047
|
$
|
0.0052
|
$
|
0.0060
|
$
|
0.0031
|
|||||||
|
Total Distributions from Net Investment Income
|
$
|
0.4718
|
$
|
0.8090
|
$
|
0.8687
|
$
|
0.9292
|
$
|
0.8310
|
$
|
0.8071
|
|||||||
|
Total Distributions from Long-Term Capital Gains*
|
$
|
—
|
$
|
0.2327
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
|||||||
|
Total Distributions
|
$
|
0.4718
|
$
|
1.0417
|
$
|
0.8687
|
$
|
0.9292
|
$
|
0.8310
|
$
|
0.8071
|
|||||||
|
Yields
|
|||||||||||||||||||
|
Market Yield**
|
4.34
|
%
|
4.41
|
%
|
5.53
|
%
|
5.76
|
%
|
5.19
|
%
|
5.52
|
%
|
|||||||
|
Taxable-Equivalent Yield**
|
6.65
|
%
|
6.75
|
%
|
8.47
|
%
|
8.82
|
%
|
7.95
|
%
|
8.45
|
%
|
|||||||
|
*
|
Distribution paid on December 2015.
|
|
**
|
Market Yield is based on the Fund's current annualized monthly distribution divided by the Fund's current market price as of the end of the reporting period. 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 a Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower.
|
Each Fund in this report seeks to pay regular monthly dividends out of its net investment income at a rate that reflects its past and projected net income performance. To permit each Fund to maintain a more stable monthly dividend, the Fund may pay dividends at a rate that may be more or less than the amount of net income actually earned by the Fund during the period. If a Fund has cumulatively earned more than it has paid in dividends, it will hold the excess in reserve as undistributed net investment income (UNII) as part of the Fund's net asset value. Conversely, if a Fund has cumulatively paid in dividends more than it has earned, the excess will constitute a negative UNII that will likewise be reflected in the Fund's net asset value. Each Fund will, over time, pay all its net investment income as dividends to shareholders.
As of February 29, 2016, the Funds had positive UNII balances for tax purposes and positive UNII balances for financial reporting purposes.
|
12
|
Nuveen Investments
|
All monthly dividends paid by each Fund during the current reporting period, were paid from net investment income. If a portion of the Fund's monthly distributions was sourced from or comprised of elements other than net investment income, including capital gains and/or a return of capital, shareholders would have received a notice to that effect. For financial reporting purposes, the composition and per share amounts of each Fund's dividends for the reporting period are presented in this report's Statement of Changes in Net Assets and Financial Highlights, respectively. For income tax purposes, distribution information for each Fund as of its most recent tax year end is presented in Note 6 – Income Tax Information within the Notes to Financial Statements of this report.
COMMON SHARE REPURCHASES
During August 2015, the Funds' Board of Directors/Trustees reauthorized an open–market share repurchase program, allowing each Fund to repurchase an aggregate of up to approximately 10% of its outstanding shares.
As of February 29, 2016, and since the inception of the Funds' repurchase programs, the Funds have cumulatively repurchased and retired common shares as shown in the accompanying table.
|
NCA
|
NCB
|
NKX
|
NAC
|
NVX
|
NZH
|
||||||||||||||
|
Common shares cumulatively repurchased and retired
|
—
|
—
|
—
|
—
|
50,700
|
12,900
|
|||||||||||||
|
Common shares authorized for repurchase
|
2,570,000
|
330,000
|
4,770,000
|
10,740,000
|
1,475,000
|
2,415,000
|
|||||||||||||
During the current reporting period, the Funds did not repurchase any of their outstanding common shares.
COMMON SHARE EQUITY SHELF PROGRAMS
During the reporting period, the following Fund was authorized to issue additional common shares through its ongoing equity shelf program. Under this program, the Fund, subject to market conditions, may raise additional capital from time to time in varying amounts and offering methods at a net price at or above the Fund's NAV per common share. Under the equity shelf program, the Fund is authorized to issue the following number of additional common shares.
|
NCA
|
||
|
Additional common shares authorized
|
2,500,000
|
During the current reporting period, NCA sold common shares through its equity shelf program at a weighted average premium to its NAV per common share as shown in the accompanying table.
|
NCA
|
||||
|
Common shares sold through equity shelf program
|
1,043,028
|
|||
|
Weighted average premium to NAV per common share sold
|
2.21
|
%
|
OTHER COMMON SHARE INFORMATION
As of February 29, 2016, and during the current reporting period, the Funds' common share prices were trading at a premium/(discount) to their common share NAVs as shown in the accompanying table.
|
NCA
|
NCB
|
NKX
|
NAC
|
NVX
|
NZH
|
||||||||||||||
|
Common share NAV
|
$
|
10.56
|
$
|
17.23
|
$
|
16.17
|
$
|
16.06
|
$
|
16.06
|
$
|
14.92
|
|||||||
|
Common share price
|
$
|
10.79
|
$
|
17.70
|
$
|
15.63
|
$
|
15.84
|
$
|
15.62
|
$
|
14.56
|
|||||||
|
Premium/(Discount) to NAV
|
2.18
|
%
|
2.73
|
%
|
(3.34
|
)%
|
(1.37
|
)%
|
(2.74
|
)%
|
(2.41
|
)%
|
|||||||
|
12-month average premium/(discount) to NAV
|
1.25
|
%
|
(3.32
|
)%
|
(6.10
|
)%
|
(4.04
|
)%
|
(5.93
|
)%
|
(6.77
|
)%
|
|||||||
|
Nuveen Investments
|
13
|
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.
Nuveen California Municipal Value Fund, Inc. (NCA)
Nuveen California Municipal Value Fund 2 (NCB)
Nuveen California Municipal Value Fund 2 (NCB)
Investing in closed-end funds involves risk; principal loss is possible. There is no guarantee the Fund's investment objectives will be achieved. Closed-end fund shares may frequently trade at a discount or premium to their net asset value. Debt or fixed income securities such as those held by the Fund, are subject to market risk, credit risk, interest rate risk, derivatives risk, liquidity risk, and income risk. As interest rates rise, bond prices fall. State concentration makes the Fund more susceptible to local adverse economic, political, or regulatory changes affecting municipal bond issuers. These and other risk considerations such as tax risk are described in more detail on the Fund's web page at www.nuveen.com/NCA, www.nuveen.com/NCB.
Nuveen California AMT-Free Municipal Income Fund (NKX)
Nuveen California Dividend Advantage Municipal Fund (NAC)
Nuveen California Dividend Advantage Municipal Fund 2 (NVX)
Nuveen California Dividend Advantage Municipal Fund 3 (NZH)
Nuveen California Dividend Advantage Municipal Fund (NAC)
Nuveen California Dividend Advantage Municipal Fund 2 (NVX)
Nuveen California Dividend Advantage Municipal Fund 3 (NZH)
Investing in closed-end funds involves risk; principal loss is possible. There is no guarantee the Fund's investment objectives will be achieved. Closed-end fund shares may frequently trade at a discount or premium to their net asset value. Debt or fixed income securities such as those held by the Fund, are subject to market risk, credit risk, interest rate risk, derivatives risk, liquidity risk, and income risk. As interest rates rise, bond prices fall. Leverage increases return volatility and magnifies the Fund's potential return and its risks; there is no guarantee a fund's leverage strategy will be successful. State concentration makes the Fund more susceptible to local adverse economic, political, or regulatory changes affecting municipal bond issuers. These and other risk considerations such as inverse floater risk and tax risk are described in more detail on the Fund's web page at www.nuveen.com/NKX, www.nuveen.com/NAC, www.nuveen.com/NVX, www.nuveen.com/NZH.
|
14
|
Nuveen Investments
|
|
NCA
|
|
|
Nuveen California Municipal Value Fund, Inc.
|
|
|
Performance Overview and Holding Summaries as of February 29, 2016
|
Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this section.
Average Annual Total Returns as of February 29, 2016
|
Average Annual
|
||||
|
1-Year
|
5-Year
|
10-Year
|
||
|
NCA at Common Share NAV
|
4.81%
|
7.95%
|
5.37%
|
|
|
NCA at Common Share Price
|
6.08%
|
10.32%
|
6.35%
|
|
|
S&P Municipal Bond California Index
|
4.37%
|
6.74%
|
5.05%
|
|
|
S&P Municipal Bond Index
|
3.78%
|
5.63%
|
4.68%
|
|
|
Lipper California Municipal Debt Funds Classification Average
|
6.24%
|
10.50%
|
5.58%
|
|
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. Returns at NAV are net of Fund expenses, and assume reinvestment of distributions. Comparative index and Lipper return information is provided for the Fund's shares at NAV only. Indexes and Lipper averages are not available for direct investment.
This data relates to the securities held in the Fund's portfolio of investments as of the end of the reporting period. It should not be construed as a measure of performance for the Fund itself. Holdings are subject to change.
Ratings shown are the highest rating given by one of the following national rating agencies: Standard & Poor's Group, Moody's Investors Service, 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. Certain bonds backed by U.S. Government or agency securities are regarded as having an implied rating equal to the rating of such securities. Holdings designated N/R are not rated by these national rating agencies.
|
Fund Allocation
|
|
|
(% of net assets)
|
|
|
Long-Term Municipal Bonds
|
98.9%
|
|
Other Assets Less Liabilities
|
2.7%
|
|
Net Assets Plus Floating Rate Obligations
|
101.6%
|
|
Floating Rate Obligations
|
(1.6)%
|
|
Net Assets
|
100%
|
|
Portfolio Composition
|
|
|
(% of total investments)
|
|
|
Tax Obligation/Limited
|
22.2%
|
|
Tax Obligation/General
|
20.9%
|
|
U.S. Guaranteed
|
19.2%
|
|
Health Care
|
11.9%
|
|
Transportation
|
9.1%
|
|
Water and Sewer
|
5.4%
|
|
Other
|
11.3%
|
|
Total
|
100%
|
|
Credit Quality
|
|
|
(% of total investment exposure)
|
|
|
AAA/U.S. Guaranteed
|
23.1%
|
|
AA
|
40.2%
|
|
A
|
15.1%
|
|
BBB
|
7.9%
|
|
BB or Lower
|
8.4%
|
|
N/R (not rated)
|
5.3%
|
|
Total
|
100%
|
|
Nuveen Investments
|
15
|
|
NCB
|
|
|
Nuveen California Municipal Value Fund 2
|
|
|
Performance Overview and Holding Summaries as of February 29, 2016
|
Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this section.
Average Annual Total Returns as of February 29, 2016
|
Average Annual
|
||||
|
Since
|
||||
|
1-Year
|
5-Year
|
Inception
|
||
|
NCB at Common Share NAV
|
4.57%
|
8.43%
|
8.17%
|
|
|
NCB at Common Share Price
|
12.91%
|
11.22%
|
8.16%
|
|
|
S&P Municipal Bond California Index
|
4.37%
|
6.74%
|
6.36%
|
|
|
S&P Municipal Bond Index
|
3.78%
|
5.63%
|
5.60%
|
|
|
Lipper California Municipal Debt Funds Classification Average
|
6.24%
|
10.50%
|
6.22%
|
|
Since inception returns are from 4/28/09. 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. Returns at NAV are net of Fund expenses, and assume reinvestment of distributions. Comparative index and Lipper return information is provided for the Fund's shares at NAV only. Indexes and Lipper averages are not available for direct investment.
This data relates to the securities held in the Fund's portfolio of investments as of the end of the reporting period. It should not be construed as a measure of performance for the Fund itself. Holdings are subject to change.
Ratings shown are the highest rating given by one of the following national rating agencies: Standard & Poor's Group, Moody's Investors Service, 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. Certain bonds backed by U.S. Government or agency securities are regarded as having an implied rating equal to the rating of such securities. Holdings designated N/R are not rated by these national rating agencies.
|
Fund Allocation
|
|
|
(% of net assets)
|
|
|
Long-Term Municipal Bonds
|
94.8%
|
|
Other Assets Less Liabilities
|
5.2%
|
|
Net Assets
|
100%
|
|
Portfolio Composition
|
|
|
(% of total investments)
|
|
|
Tax Obligation/Limited
|
19.4%
|
|
Utilities
|
14.8%
|
|
Health Care
|
14.2%
|
|
U.S. Guaranteed
|
13.7%
|
|
Tax Obligation/General
|
13.3%
|
|
Consumer Staples
|
6.2%
|
|
Transportation
|
5.3%
|
|
Housing/Single Family
|
5.0%
|
|
Other
|
8.1%
|
|
Total
|
100%
|
|
Credit Quality
|
|
|
(% of total investment exposure)
|
|
|
AAA/U.S. Guaranteed
|
22.3%
|
|
AA
|
24.6%
|
|
A
|
34.4%
|
|
BBB
|
8.7%
|
|
BB or Lower
|
8.9%
|
|
N/R (not rated)
|
1.1%
|
|
Total
|
100%
|
|
16
|
Nuveen Investments
|
|
NKX
|
|
|
Nuveen California AMT-Free Municipal Income Fund
|
|
|
Performance Overview and Holding Summaries as of February 29, 2016
|
Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this section.
Average Annual Total Returns as of February 29, 2016
|
Average Annual
|
||||
|
1-Year
|
5-Year
|
10-Year
|
||
|
NKX at Common Share NAV
|
7.09%
|
10.95%
|
6.50%
|
|
|
NKX at Common Share Price
|
12.93%
|
12.50%
|
6.88%
|
|
|
S&P Municipal Bond California Index
|
4.37%
|
6.74%
|
5.05%
|
|
|
S&P Municipal Bond Index
|
3.78%
|
5.63%
|
4.68%
|
|
|
Lipper California Municipal Debt Funds Classification Average
|
6.24%
|
10.50%
|
5.58%
|
|
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. Returns at NAV are net of Fund expenses, and assume reinvestment of distributions. Comparative index and Lipper return information is provided for the Fund's shares at NAV only. Indexes and Lipper averages are not available for direct investment.
This data relates to the securities held in the Fund's portfolio of investments as of the end of the reporting period. It should not be construed as a measure of performance for the Fund itself. Holdings are subject to change.
Ratings shown are the highest rating given by one of the following national rating agencies: Standard & Poor's Group, Moody's Investors Service, 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. Certain bonds backed by U.S. Government or agency securities are regarded as having an implied rating equal to the rating of such securities. Holdings designated N/R are not rated by these national rating agencies.
|
Fund Allocation
|
|
|
(% of net assets)
|
|
|
Long-Term Municipal Bonds
|
140.0%
|
|
Other Assets Less Liabilities
|
2.6%
|
|
Net Assets Plus Floating Rate Obligations, iMTP Shares, at Liquidation Preference & VRDP Shares, at Liquidation Preference
|
142.6%
|
|
Floating Rate Obligations
|
(0.1)%
|
|
iMTP Shares, at Liquidation Preference
|
(4.7)%
|
|
VRDP Shares, at Liquidation Preference
|
(37.8)%
|
|
Net Assets
|
100%
|
|
Portfolio Composition
|
|
|
(% of total investments)
|
|
|
Tax Obligation/Limited
|
28.5%
|
|
Tax Obligation/General
|
23.7%
|
|
Water and Sewer
|
11.2%
|
|
Health Care
|
11.1%
|
|
U.S. Guaranteed
|
8.4%
|
|
Consumer Staples
|
5.4%
|
|
Other
|
11.7%
|
|
Total
|
100%
|
|
Credit Quality
|
|
|
(% of total investment exposure)
|
|
|
AAA/U.S. Guaranteed
|
9.4%
|
|
AA
|
53.7%
|
|
A
|
14.4%
|
|
BBB
|
8.3%
|
|
BB or Lower
|
9.3%
|
|
N/R (not rated)
|
4.9%
|
|
Total
|
100%
|
|
Nuveen Investments
|
17
|
|
NAC
|
|
|
Nuveen California Dividend Advantage Municipal Fund
|
|
|
Performance Overview and Holding Summaries as of February 29, 2016
|
Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this section.
Average Annual Total Returns as of February 29, 2016
|
Average Annual
|
||||
|
1-Year
|
5-Year
|
10-Year
|
||
|
NAC at Common Share NAV
|
6.73%
|
11.43%
|
6.65%
|
|
|
NAC at Common Share Price
|
9.79%
|
12.28%
|
6.67%
|
|
|
S&P Municipal Bond California Index
|
4.37%
|
6.74%
|
5.05%
|
|
|
S&P Municipal Bond Index
|
3.78%
|
5.63%
|
4.68%
|
|
|
Lipper California Municipal Debt Funds Classification Average
|
6.24%
|
10.50%
|
5.58%
|
|
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. Returns at NAV are net of Fund expenses, and assume reinvestment of distributions. Comparative index and Lipper return information is provided for the Fund's shares at NAV only. Indexes and Lipper averages are not available for direct investment.
This data relates to the securities held in the Fund's portfolio of investments as of the end of the reporting period. It should not be construed as a measure of performance for the Fund itself. Holdings are subject to change.
Ratings shown are the highest rating given by one of the following national rating agencies: Standard & Poor's Group, Moody's Investors Service, 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. Certain bonds backed by U.S. Government or agency securities are regarded as having an implied rating equal to the rating of such securities. Holdings designated N/R are not rated by these national rating agencies.
|
Fund Allocation
|
|
|
(% of net assets)
|
|
|
Long-Term Municipal Bonds
|
142.3%
|
|
Other Assets Less Liabilities
|
3.0%
|
|
Net Assets Plus Floating Rate Obligations & VRDP Shares, at Liquidation Preference
|
145.3%
|
|
Floating Rate Obligations
|
(4.7)%
|
|
VRDP Shares, at Liquidation Preference
|
(40.6)%
|
|
Net Assets
|
100%
|
|
Portfolio Composition
|
|
|
(% of total investments)
|
|
|
Tax Obligation/General
|
25.1%
|
|
Tax Obligation/Limited
|
21.7%
|
|
Health Care
|
16.6%
|
|
U.S. Guaranteed
|
9.6%
|
|
Water and Sewer
|
8.0%
|
|
Transportation
|
6.0%
|
|
Consumer Staples
|
5.5%
|
|
Other
|
7.5%
|
|
Total
|
100%
|
|
Credit Quality
|
|
|
(% of total investment exposure)
|
|
|
AAA/U.S. Guaranteed
|
13.1%
|
|
AA
|
48.4%
|
|
A
|
16.9%
|
|
BBB
|
9.3%
|
|
BB or Lower
|
9.3%
|
|
N/R (not rated)
|
3.0%
|
|
Total
|
100%
|
|
18
|
Nuveen Investments
|
|
NVX
|
|
|
Nuveen California Dividend Advantage Municipal Fund 2
|
|
|
Performance Overview and Holding Summaries as of February 29, 2016
|
Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this section.
Average Annual Total Returns as of February 29, 2016
|
Average Annual
|
||||
|
1-Year
|
5-Year
|
10-Year
|
||
|
NVX at Common Share NAV
|
7.03%
|
9.87%
|
6.40%
|
|
|
NVX at Common Share Price
|
13.22%
|
10.68%
|
6.85%
|
|
|
S&P Municipal Bond California Index
|
4.37%
|
6.74%
|
5.05%
|
|
|
S&P Municipal Bond Index
|
3.78%
|
5.63%
|
4.68%
|
|
|
Lipper California Municipal Debt Funds Classification Average
|
6.24%
|
10.50%
|
5.58%
|
|
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. Returns at NAV are net of Fund expenses, and assume reinvestment of distributions. Comparative index and Lipper return information is provided for the Fund's shares at NAV only. Indexes and Lipper averages are not available for direct investment.
This data relates to the securities held in the Fund's portfolio of investments as of the end of the reporting period. It should not be construed as a measure of performance for the Fund itself. Holdings are subject to change.
Ratings shown are the highest rating given by one of the following national rating agencies: Standard & Poor's Group, Moody's Investors Service, 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. Certain bonds backed by U.S. Government or agency securities are regarded as having an implied rating equal to the rating of such securities. Holdings designated N/R are not rated by these national rating agencies.
|
Fund Allocation
|
|
|
(% of net assets)
|
|
|
Long-Term Municipal Bonds
|
140.1%
|
|
Other Assets Less Liabilities
|
1.6%
|
|
Net Assets Plus Floating Rate Obligations & VRDP Shares, at Liquidation Preference
|
141.7%
|
|
Floating Rate Obligations
|
(0.4)%
|
|
VRDP Shares, at Liquidation Preference
|
(41.3)%
|
|
Net Assets
|
100%
|
|
Portfolio Composition
|
|
|
(% of total investments)
|
|
|
Tax Obligation/General
|
23.4%
|
|
Tax Obligation/Limited
|
18.3%
|
|
Health Care
|
11.3%
|
|
Transportation
|
10.9%
|
|
U.S. Guaranteed
|
8.1%
|
|
Water and Sewer
|
9.4%
|
|
Utilities
|
7.7%
|
|
Consumer Staples
|
5.8%
|
|
Other
|
5.1%
|
|
Total
|
100%
|
|
Credit Quality
|
|
|
(% of total investment exposure)
|
|
|
AAA/U.S. Guaranteed
|
11.9%
|
|
AA
|
40.4%
|
|
A
|
25.5%
|
|
BBB
|
9.6%
|
|
BB or Lower
|
10.2%
|
|
N/R (not rated)
|
2.4%
|
|
Total
|
100%
|
|
Nuveen Investments
|
19
|
|
NZH
|
|
|
Nuveen California Dividend Advantage Municipal Fund 3
|
|
|
Performance Overview and Holding Summaries as of February 29, 2016
|
Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this section.
Average Annual Total Returns as of February 29, 2016
|
Average Annual
|
||||
|
1-Year
|
5-Year
|
10-Year
|
||
|
NZH at Common Share NAV
|
7.26%
|
10.67%
|
6.01%
|
|
|
NZH at Common Share Price
|
13.31%
|
11.37%
|
6.41%
|
|
|
S&P Municipal Bond California Index
|
4.37%
|
6.74%
|
5.05%
|
|
|
S&P Municipal Bond Index
|
3.78%
|
5.63%
|
4.68%
|
|
|
Lipper California Municipal Debt Funds Classification Average
|
6.24%
|
10.50%
|
5.58%
|
|
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. Returns at NAV are net of Fund expenses, and assume reinvestment of distributions. Comparative index and Lipper return information is provided for the Fund's shares at NAV only. Indexes and Lipper averages are not available for direct investment.
This data relates to the securities held in the Fund's portfolio of investments as of the end of the reporting period. It should not be construed as a measure of performance for the Fund itself. Holdings are subject to change.
Ratings shown are the highest rating given by one of the following national rating agencies: Standard & Poor's Group, Moody's Investors Service, 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. Certain bonds backed by U.S. Government or agency securities are regarded as having an implied rating equal to the rating of such securities. Holdings designated N/R are not rated by these national rating agencies.
|
Fund Allocation
|
|
|
(% of net assets)
|
|
|
Long-Term Municipal Bonds
|
140.2%
|
|
Other Assets Less Liabilities
|
4.4%
|
|
Net Assets Plus Floating Rate Obligations & VRDP Shares, at Liquidation Preference
|
144.6%
|
|
Floating Rate Obligations
|
(0.2)%
|
|
VRDP Shares, at Liquidation Preference
|
(44.4)%
|
|
Net Assets
|
100%
|
|
Portfolio Composition
|
|
|
(% of total investments)
|
|
|
Tax Obligation/Limited
|
26.7%
|
|
Health Care
|
19.4%
|
|
Tax Obligation/General
|
13.3%
|
|
Water and Sewer
|
10.6%
|
|
Transportation
|
9.0%
|
|
Consumer Staples
|
6.9%
|
|
Other
|
14.1%
|
|
Total
|
100%
|
|
Credit Quality
|
|
|
(% of total investment exposure)
|
|
|
AAA/U.S. Guaranteed
|
6.3%
|
|
AA
|
49.9%
|
|
A
|
19.5%
|
|
BBB
|
10.6%
|
|
BB or Lower
|
10.5%
|
|
N/R (not rated)
|
3.2%
|
|
Total
|
100%
|
|
20
|
Nuveen Investments
|
Shareholder Meeting Report
The annual meeting of shareholders was held in the offices of Nuveen Investments on November 17, 2015 for NCA, NCB, NKX, NAC, NVX and NZH; at this meeting the shareholders were asked to elect Board Members.
|
NCA
|
NCB
|
NKX
|
NAC
|
||||||||||||||||
|
Common and
|
Common and
|
||||||||||||||||||
|
Preferred
|
Preferred
|
Preferred
|
Preferred
|
||||||||||||||||
|
shares voting
|
shares voting
|
shares voting
|
shares voting
|
||||||||||||||||
|
Common
|
Common
|
together
|
together
|
together
|
together
|
||||||||||||||
|
Shares
|
Shares
|
as a class
|
as a class
|
as a class
|
as a class
|
||||||||||||||
|
Approval of the Board Members was reached as follows:
|
|||||||||||||||||||
|
Jack B. Evans
|
|||||||||||||||||||
|
For
|
23,060,778
|
3,048,554
|
42,072,527
|
—
|
95,687,722
|
—
|
|||||||||||||
|
Withhold
|
422,216
|
41,829
|
747,683
|
—
|
2,686,543
|
—
|
|||||||||||||
|
Total
|
23,482,994
|
3,090,383
|
42,820,210
|
—
|
98,374,265
|
—
|
|||||||||||||
|
William C. Hunter
|
|||||||||||||||||||
|
For
|
—
|
—
|
—
|
6,671
|
—
|
5,403
|
|||||||||||||
|
Withhold
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||
|
Total
|
—
|
—
|
—
|
6,671
|
—
|
5,403
|
|||||||||||||
|
William J. Schneider
|
|||||||||||||||||||
|
For
|
22,969,174
|
3,048,554
|
—
|
6,671
|
—
|
5,403
|
|||||||||||||
|
Withhold
|
513,820
|
41,829
|
—
|
—
|
—
|
—
|
|||||||||||||
|
Total
|
23,482,994
|
3,090,383
|
—
|
6,671
|
—
|
5,403
|
|||||||||||||
|
Thomas S. Schreier, Jr.
|
|||||||||||||||||||
|
For
|
23,063,522
|
3,048,554
|
41,976,747
|
—
|
95,524,415
|
—
|
|||||||||||||
|
Withhold
|
419,472
|
41,829
|
843,463
|
—
|
2,849,850
|
—
|
|||||||||||||
|
Total
|
23,482,994
|
3,090,383
|
42,820,210
|
—
|
98,374,265
|
—
|
|||||||||||||
|
Nuveen Investments
|
21
|
Shareholder Meeting Report (continued)
|
NVX
|
NZH
|
||||||||||||
|
Common and
|
Common and
|
||||||||||||
|
Preferred
|
Preferred
|
||||||||||||
|
shares voting
|
shares voting
|
||||||||||||
|
together
|
Preferred
|
together
|
Preferred
|
||||||||||
|
as a class
|
Shares
|
as a class
|
Shares
|
||||||||||
|
Approval of the Board Members was reached as follows:
|
|||||||||||||
|
Jack B. Evans
|
|||||||||||||
|
For
|
13,199,933
|
—
|
21,844,882
|
—
|
|||||||||
|
Withhold
|
352,385
|
—
|
366,228
|
—
|
|||||||||
|
Total
|
13,552,318
|
—
|
22,211,110
|
—
|
|||||||||
|
William C. Hunter
|
|||||||||||||
|
For
|
—
|
680
|
—
|
1,470
|
|||||||||
|
Withhold
|
—
|
—
|
—
|
—
|
|||||||||
|
Total
|
—
|
680
|
—
|
1,470
|
|||||||||
|
William J. Schneider
|
|||||||||||||
|
For
|
—
|
680
|
—
|
1,470
|
|||||||||
|
Withhold
|
—
|
—
|
—
|
—
|
|||||||||
|
Total
|
—
|
680
|
—
|
1,470
|
|||||||||
|
Thomas S. Schreier, Jr.
|
|||||||||||||
|
For
|
13,171,845
|
—
|
21,738,296
|
—
|
|||||||||
|
Withhold
|
380,473
|
—
|
472,814
|
—
|
|||||||||
|
Total
|
13,552,318
|
—
|
22,211,110
|
—
|
|||||||||
|
22
|
Nuveen Investments
|
Report of Independent Registered Public Accounting Firm
To the Board of Directors/Trustees and Shareholders of
Nuveen California Municipal Value Fund, Inc.
Nuveen California Municipal Value Fund 2
Nuveen California AMT-Free Municipal Income Fund
Nuveen California Dividend Advantage Municipal Fund
Nuveen California Dividend Advantage Municipal Fund 2
Nuveen California Dividend Advantage Municipal Fund 3:
Nuveen California Municipal Value Fund, Inc.
Nuveen California Municipal Value Fund 2
Nuveen California AMT-Free Municipal Income Fund
Nuveen California Dividend Advantage Municipal Fund
Nuveen California Dividend Advantage Municipal Fund 2
Nuveen California Dividend Advantage Municipal Fund 3:
We have audited the accompanying statements of assets and liabilities, including the portfolios of investments, of Nuveen California Municipal Value Fund, Inc., Nuveen California Municipal Value Fund 2, Nuveen California AMT-Free Municipal Income Fund, Nuveen California Dividend Advantage Municipal Fund, Nuveen California Dividend Advantage Municipal Fund 2 and Nuveen California Dividend Advantage Municipal Fund 3 (the "Funds") as of February 29, 2016, and the related statements of operations for the year then ended, the statements of cash flows (Nuveen California AMT-Free Municipal Income Fund, Nuveen California Dividend Advantage Municipal Fund, Nuveen California Dividend Advantage Municipal Fund 2, and Nuveen California Dividend Advantage Municipal Fund 3 only) for the year then ended, and the statement of changes in net assets and the financial highlights for each of the years in the two-year period then ended. The financial highlights for the periods presented through February 28, 2014, were audited by other auditors whose report dated April 25, 2014, expressed an unqualified opinion on those financial highlights. These financial statements and financial highlights are the responsibility of the Funds' management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of February 29, 2016, by correspondence with the custodian and brokers or other appropriate auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Funds as of February 29, 2016, the results of their operations for the year then ended, their cash flows (Nuveen California AMT-Free Municipal Income Fund, Nuveen California Dividend Advantage Municipal Fund, Nuveen California Dividend Advantage Municipal Fund 2, and Nuveen California Dividend Advantage Municipal Fund 3 only) for the year then ended, and the changes in their net assets and the financial highlights for each of the years in the two-year period then ended, in conformity with U.S. generally accepted accounting principles.
/s/ KPMG LLP
Chicago, Illinois
April 27, 2016
Chicago, Illinois
April 27, 2016
|
Nuveen Investments
|
23
|
|
NCA
|
||
|
Nuveen California Municipal Value Fund, Inc.
|
||
|
Portfolio of Investments
|
February 29, 2016
|
|
Principal
|
Optional Call
|
|||||||||
|
Amount (000)
|
Description (1)
|
Provisions (2)
|
Ratings (3)
|
Value
|
||||||
|
LONG-TERM INVESTMENTS – 98.9% (100.0% of Total Investments)
|
||||||||||
|
MUNICIPAL BONDS – 98.9% (100.0% of Total Investments)
|
||||||||||
|
Consumer Staples – 4.5% (4.6% of Total Investments)
|
||||||||||
|
$
|
2,000
|
California County Tobacco Securitization Agency, Tobacco Settlement Asset-Backed Bonds, Los Angeles County Securitization Corporation, Series 2006A, 5.650%, 6/01/41
|
12/18 at 100.00
|
B2
|
|
$
|
2,002,320
|
|||
|
195
|
California County Tobacco Securitization Agency, Tobacco Settlement Asset-Backed Bonds, Sonoma County Tobacco Securitization Corporation, Series 2005, 4.250%, 6/01/21
|
5/16 at 100.00
|
BBB+
|
195,027
|
||||||
|
3,940
|
Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed Bonds, Series 2007A-1, 5.000%, 6/01/33
|
6/17 at 100.00
|
B–
|
3,739,612
|
||||||
|
3,570
|
Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed Bonds, Series 2007A-2, 5.300%, 6/01/37
|
6/22 at 100.00
|
B–
|
3,369,830
|
||||||
|
3,500
|
Tobacco Securitization Authority of Northern California, Tobacco Settlement Asset-Backed Bonds, Series 2005A-1, 5.500%, 6/01/45
|
5/16 at 100.00
|
B–
|
3,361,645
|
||||||
|
13,205
|
Total Consumer Staples
|
12,668,434
|
||||||||
|
Education and Civic Organizations – 0.5% (0.5% of Total Investments)
|
||||||||||
|
65
|
California Educational Facilities Authority, Revenue Bonds, University of Redlands, Series 2005A, 5.000%, 10/01/35
|
4/16 at 100.00
|
A3
|
65,216
|
||||||
|
450
|
California Municipal Finance Authority, Charter School Revenue Bonds, Rocketship Education, Multiple Projects, Series 2014A, 7.250%, 6/01/43
|
6/22 at 102.00
|
N/R
|
524,934
|
||||||
|
700
|
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
|
BBB–
|
789,390
|
||||||
|
1,215
|
Total Education and Civic Organizations
|
1,379,540
|
||||||||
|
Health Care – 11.8% (11.9% of Total Investments)
|
||||||||||
|
285
|
California Health Facilities Financing Authority, California, Revenue Bonds, Sutter Health, Refunding Series 2015A, 5.000%, 8/15/43
|
8/25 at 100.00
|
AA–
|
330,118
|
||||||
|
555
|
California Health Facilities Financing Authority, Revenue Bonds, Lucile Salter Packard Children's Hospital, Series 2014A, 5.000%, 8/15/43
|
8/24 at 100.00
|
AA
|
636,502
|
||||||
|
350
|
California Health Facilities Financing Authority, Revenue Bonds, Providence Health & Services, Series 2014A, 5.000%, 10/01/38
|
10/24 at 100.00
|
AA
|
406,385
|
||||||
|
690
|
California Health Facilities Financing Authority, Revenue Bonds, Providence Health & Services, Series 2014B, 5.000%, 10/01/44
|
10/24 at 100.00
|
AA
|
789,857
|
||||||
|
California Health Facilities Financing Authority, Revenue Bonds, Rady Children's Hospital – San Diego, Series 2011:
|
||||||||||
|
560
|
5.000%, 8/15/31
|
8/21 at 100.00
|
AA–
|
650,278
|
||||||
|
670
|
5.250%, 8/15/41
|
8/21 at 100.00
|
AA–
|
752,765
|
||||||
|
1,000
|
California Health Facilities Financing Authority, Revenue Bonds, Sutter Health, Series 2011B, 6.000%, 8/15/42
|
8/20 at 100.00
|
AA–
|
1,200,660
|
||||||
|
5,365
|
California Health Facilities Financing Authority, Revenue Bonds, Sutter Health, Series 2007A, 5.250%, 11/15/46 (UB)
|
11/16 at 100.00
|
AA–
|
5,527,291
|
||||||
|
2,270
|
California Municipal Financing Authority, Certificates of Participation, Community Hospitals of Central California, Series 2007, 5.250%, 2/01/27
|
2/17 at 100.00
|
A–
|
2,346,386
|
||||||
|
2,625
|
California Statewide Communities Development Authority, Revenue Bonds, Kaiser Permanente, Series 2012A, 5.000%, 4/01/42
|
4/22 at 100.00
|
A+
|
2,987,906
|
||||||
|
3,000
|
California Statewide Community Development Authority, Health Facility Revenue Bonds, Catholic Healthcare West, Insured Series 2008K, 5.500%, 7/01/41 – AGC Insured
|
7/17 at 100.00
|
AA
|
3,151,830
|
||||||
|
1,000
|
California Statewide Community Development Authority, Health Facility Revenue Bonds, Catholic Healthcare West, Series 2008C, 5.625%, 7/01/35
|
7/18 at 100.00
|
A
|
1,089,600
|
|
24
|
Nuveen Investments
|
|
Principal
|
|
Optional Call
|
||||||||
|
Amount (000)
|
Description (1)
|
Provisions (2)
|
Ratings (3)
|
Value
|
||||||
|
Health Care (continued)
|
||||||||||
|
$
|
1,460
|
California Statewide Community Development Authority, Revenue Bonds, Kaiser Permanente System, Series 2001C, 5.250%, 8/01/31
|
8/16 at 100.00
|
A+
|
|
$
|
1,484,382
|
|||
|
2,710
|
California Statewide Community Development Authority, Revenue Bonds, Sherman Oaks Health System, Series 1998A, 5.000%, 8/01/22 – AMBAC Insured
|
No Opt. Call
|
AA–
|
3,125,822
|
||||||
|
2,940
|
Palomar Pomerado Health Care District, California, Certificates of Participation, Series 2009, 6.750%, 11/01/39
|
11/19 at 100.00
|
Ba1
|
3,296,034
|
||||||
|
2,900
|
Palomar Pomerado Health Care District, California, Certificates of Participation, Series 2010, 6.000%, 11/01/41
|
11/20 at 100.00
|
Ba1
|
3,096,359
|
||||||
|
1,750
|
San Buenaventura, California, Revenue Bonds, Community Memorial Health System, Series 2011, 7.500%, 12/01/41
|
12/21 at 100.00
|
BB+
|
2,145,150
|
||||||
|
30,130
|
Total Health Care
|
33,017,325
|
||||||||
|
Housing/Multifamily – 2.1% (2.2% of Total Investments)
|
||||||||||
|
1,010
|
California Municipal Finance Authority, Mobile Home Park Revenue Bonds, Caritas Projects Series 2010A, 6.400%, 8/15/45
|
8/20 at 100.00
|
BBB
|
1,115,495
|
||||||
|
1,060
|
California Municipal Finance Authority, Mobile Home Park Revenue Bonds, Caritas Projects Series 2012A, 5.500%, 8/15/47
|
8/22 at 100.00
|
BBB
|
1,187,486
|
||||||
|
California Municipal Finance Authority, Mobile Home Park Senior Revenue Bonds, Caritas Affordable Housing, Inc. Projects, Series 2014A:
|
||||||||||
|
65
|
5.250%, 8/15/39
|
8/24 at 100.00
|
BBB
|
73,419
|
||||||
|
175
|
5.250%, 8/15/49
|
8/24 at 100.00
|
BBB
|
197,026
|
||||||
|
2,255
|
California Statewide Community Development Authority, Multifamily Housing Revenue Bonds, Harbor City Lights, Series 1999Y, 6.650%, 7/01/39 (Alternative Minimum Tax)
|
7/16 at 100.00
|
N/R
|
2,257,661
|
||||||
|
1,105
|
San Dimas Housing Authority, California, Mobile Home Park Revenue Bonds, Charter Oak Mobile Home Estates Acquisition Project, Series 1998A, 5.700%, 7/01/28
|
7/16 at 100.00
|
N/R
|
1,106,790
|
||||||
|
5,670
|
Total Housing/Multifamily
|
5,937,877
|
||||||||
|
Housing/Single Family – 0.8% (0.8% of Total Investments)
|
||||||||||
|
2,125
|
California Department of Veteran Affairs, Home Purchase Revenue Bonds, Series 2007, 5.000%, 12/01/42 (Alternative Minimum Tax)
|
12/16 at 100.00
|
AA
|
2,164,249
|
||||||
|
Long-Term Care – 1.7% (1.7% of Total Investments)
|
||||||||||
|
4,000
|
ABAG Finance Authority for Non-Profit Corporations, California, Health Facility Revenue Bonds, The Institute on Aging, Series 2008A, 5.650%, 8/15/38
|
8/18 at 100.00
|
AA–
|
4,418,840
|
||||||
|
180
|
California Statewide Community Development Authority, Certificates of Participation, Internext Group, Series 1999, 5.375%, 4/01/17
|
4/16 at 100.00
|
BBB+
|
180,803
|
||||||
|
4,180
|
Total Long-Term Care
|
4,599,643
|
||||||||
|
Tax Obligation/General – 20.7% (20.9% of Total Investments)
|
||||||||||
|
1,000
|
California State, General Obligation Bonds, Refunding Various Purpose Series 2013, 5.000%, 2/01/29
|
No Opt. Call
|
AA–
|
1,196,350
|
||||||
|
1,000
|
California State, General Obligation Bonds, Various Purpose Refunding Series 2014, 5.000%, 8/01/31
|
8/24 at 100.00
|
AA–
|
1,203,100
|
||||||
|
3,000
|
California State, General Obligation Bonds, Various Purpose Refunding Series 2015, 5.000%, 8/01/34
|
8/25 at 100.00
|
AA–
|
3,587,130
|
||||||
|
California State, General Obligation Bonds, Various Purpose Series 2009:
|
||||||||||
|
2,500
|
6.000%, 4/01/38
|
4/19 at 100.00
|
AA–
|
2,872,650
|
||||||
|
1,000
|
6.000%, 11/01/39
|
11/19 at 100.00
|
AA–
|
1,175,470
|
||||||
|
2,000
|
California State, General Obligation Bonds, Various Purpose Series 2010, 5.500%, 3/01/40
|
3/20 at 100.00
|
AA–
|
2,316,640
|
||||||
|
California State, General Obligation Bonds, Various Purpose Series 2013:
|
||||||||||
|
2,500
|
5.000%, 4/01/37
|
4/23 at 100.00
|
AA–
|
2,917,800
|
||||||
|
2,500
|
5.000%, 2/01/43
|
No Opt. Call
|
AA–
|
2,876,100
|
||||||
|
2,240
|
5.000%, 11/01/43
|
11/23 at 100.00
|
AA–
|
2,609,981
|
|
Nuveen Investments
|
25
|
|
NCA
|
Nuveen California Municipal Value Fund, Inc.
|
|
|
Portfolio of Investments (continued)
|
February 29, 2016
|
|
Principal
|
Optional Call
|
|||||||||
|
Amount (000)
|
Description (1)
|
Provisions (2)
|
Ratings (3)
|
Value
|
||||||
|
Tax Obligation/General (continued)
|
||||||||||
|
California State, General Obligation Bonds, Various Purpose Series 2014:
|
||||||||||
|
$
|
5,000
|
5.000%, 5/01/32
|
5/24 at 100.00
|
AA–
|
|
$
|
5,955,250
|
|||
|
1,970
|
5.000%, 10/01/39
|
10/24 at 100.00
|
AA–
|
2,313,568
|
||||||
|
290
|
Oceanside Unified School District, San Diego County, California, General Obligation Bonds, Election 2008 Series 2010B, 0.000%, 8/01/49 – AGM Insured
|
8/20 at 13.60
|
AA
|
34,635
|
||||||
|
10,000
|
Poway Unified School District, San Diego County, California, General Obligation Bonds, School Facilities Improvement District 2007-1, Series 2011A, 0.000%, 8/01/46
|
No Opt. Call
|
AA–
|
2,972,900
|
||||||
|
2,000
|
Puerto Rico, General Obligation Bonds, Public Improvement Series 2002A, 5.500%, 7/01/20 – NPFG Insured
|
No Opt. Call
|
AA–
|
2,087,120
|
||||||
|
11,875
|
San Mateo Union High School District, San Mateo County, California, General Obligation Bonds, Election 2010 Series 2011A, 0.000%, 9/01/41
|
9/36 at 100.00
|
Aaa
|
9,666,962
|
||||||
|
1,320
|
Tahoe Forest Hospital District, Placer and Nevada Counties, California, General Obligation Bonds, Series 2010B, 5.500%, 8/01/35
|
8/18 at 100.00
|
Aa3
|
1,450,350
|
||||||
|
20,860
|
Yosemite Community College District, California, General Obligation Bonds, Capital Appreciation, Election 2004, Series 2010D, 0.000%, 8/01/42
|
No Opt. Call
|
Aa2
|
12,697,062
|
||||||
|
71,055
|
Total Tax Obligation/General
|
57,933,068
|
||||||||
|
Tax Obligation/Limited – 22.0% (22.2% of Total Investments)
|
||||||||||
|
1,000
|
Artesia Redevelopment Agency, California, Tax Allocation Revenue Bonds, Artesia Redevelopment Project Area, Series 2007, 5.375%, 6/01/27
|
5/16 at 100.00
|
BBB+
|
1,001,690
|
||||||
|
Bell Community Redevelopment Agency, California, Tax Allocation Bonds, Bell Project Area, Series 2003:
|
||||||||||
|
3,000
|
5.500%, 10/01/23 – RAAI Insured
|
4/16 at 100.00
|
AA
|
3,003,900
|
||||||
|
1,000
|
5.625%, 10/01/33 – RAAI Insured
|
4/16 at 100.00
|
AA
|
1,000,630
|
||||||
|
3,500
|
California State Public Works Board, Lease Revenue Bonds, Department of Corrections & Rehabilitation, Various Correctional Facilities Series 2013F, 5.250%, 9/01/33
|
9/23 at 100.00
|
A+
|
4,189,360
|
||||||
|
1,250
|
California State Public Works Board, Lease Revenue Bonds, Department of Corrections & Rehabilitation, Various Correctional Facilities Series 2014A, 5.000%, 9/01/39
|
9/24 at 100.00
|
A+
|
1,458,913
|
||||||
|
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
|
A+
|
1,167,700
|
||||||
|
2,000
|
California State Public Works Board, Lease Revenue Bonds, Various Capital Projects, Series 2009-I, 6.375%, 11/01/34
|
11/19 at 100.00
|
A+
|
2,398,620
|
||||||
|
3,000
|
California State Public Works Board, Lease Revenue Bonds, Various Capital Projects, Series 2012G, 5.000%, 11/01/37
|
11/22 at 100.00
|
A+
|
3,484,170
|
||||||
|
1,005
|
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
|
1,033,522
|
||||||
|
1,000
|
Folsom Public Financing Authority, California, Special Tax Revenue Bonds, Refunding Series 2007A, 5.000%, 9/01/23 – AMBAC Insured
|
9/17 at 100.00
|
N/R
|
1,041,240
|
||||||
|
750
|
Fontana Redevelopment Agency, San Bernardino County, California, Tax Allocation Bonds, Jurupa Hills Redevelopment Project, Refunding Series 1997A, 5.500%, 10/01/27
|
4/16 at 100.00
|
A
|
753,293
|
||||||
|
8,250
|
Golden State Tobacco Securitization Corporation, California, Enhanced Tobacco Settlement Asset-Backed Revenue Bonds, Series 2015A, 5.000%, 6/01/45
|
6/25 at 100.00
|
A+
|
9,459,532
|
||||||
|
675
|
Inglewood Redevelopment Agency, California, Tax Allocation Bonds, Merged Redevelopment Project, Subordinate Lien Series 2007A-1, 5.000%,
5/01/25 – AMBAC Insured |
5/17 at 100.00
|
BBB+
|
692,091
|
||||||
|
Irvine Unified School District, California, Special Tax Bonds, Community Facilities District Series 2006A:
|
||||||||||
|
150
|
5.000%, 9/01/26
|
9/16 at 100.00
|
N/R
|
152,606
|
||||||
|
355
|
5.125%, 9/01/36
|
9/16 at 100.00
|
N/R
|
360,119
|
||||||
|
2,500
|
Kern County Board of Education, California, Certificates of Participation, Series 2006A, 5.000%, 6/01/31 – NPFG Insured
|
6/16 at 100.00
|
AA–
|
2,522,625
|
||||||
|
750
|
Lancaster Redevelopment Agency, California, Tax Allocation Bonds, Combined Redevelopment Project Areas Housing Programs, Series 2009, 6.000%, 8/01/24
|
8/19 at 100.00
|
BBB
|
859,890
|
|
26
|
Nuveen Investments
|
|
Principal
|
Optional Call
|
|||||||||
|
Amount (000)
|
Description (1)
|
Provisions (2)
|
Ratings (3)
|
Value
|
||||||
|
Tax Obligation/Limited (continued)
|
||||||||||
|
$
|
3,520
|
Los Angeles County Public Works Financing Authority, California, Lease Revenue Bonds, Multiple Capital Facilities Project II, Series 2012, 5.000%, 8/01/42
|
No Opt. Call
|
AA
|
|
$
|
4,045,078
|
|||
|
370
|
National City Community Development Commission, California, Tax Allocation Bonds, National City Redevelopment Project, Series 2011, 6.500%, 8/01/24
|
8/21 at 100.00
|
A
|
468,213
|
||||||
|
140
|
Novato Redevelopment Agency, California, Tax Allocation Bonds, Hamilton Field Redevelopment Project, Series 2011, 6.750%, 9/01/40
|
9/21 at 100.00
|
BBB+
|
169,757
|
||||||
|
5,910
|
Palmdale Elementary School District, Los Angeles County, California, Special Tax Bonds, Community Facilities District 90-1, Series 1999, 5.800%, 8/01/29
|
No Opt. Call
|
AA
|
5,934,999
|
||||||
|
160
|
Patterson Public Finance Authority, California, Revenue Bonds, Community Facilities District 2001-1, Subordinate Lien Series 2013B, 5.875%, 9/01/39
|
9/23 at 100.00
|
N/R
|
177,082
|
||||||
|
Patterson Public Financing Authority, California, Revenue Bonds, Community Facilities District 2001-1, Senior Series 2013A:
|
||||||||||
|
950
|
5.250%, 9/01/30
|
9/23 at 100.00
|
N/R
|
1,053,170
|
||||||
|
860
|
5.750%, 9/01/39
|
9/23 at 100.00
|
N/R
|
958,126
|
||||||
|
440
|
Rancho Santa Fe CSD Financing Authority, California, Revenue Bonds, Superior Lien Series 2011A, 5.750%, 9/01/30
|
9/21 at 100.00
|
BBB+
|
505,718
|
||||||
|
80
|
Riverside County Redevelopment Agency, California, Tax Allocation Bonds, Jurupa Valley Project Area, Series 2011B, 6.500%, 10/01/25
|
10/21 at 100.00
|
A
|
99,845
|
||||||
|
2,000
|
Roseville, California, Special Tax Bonds, Community Facilities District 1 Fiddyment Ranch, Series 2005, 5.050%, 9/01/30
|
9/16 at 100.00
|
N/R
|
2,017,660
|
||||||
|
50
|
San Clemente, California, Special Tax Revenue Bonds, Community Facilities District 2006-1 Marblehead Coastal, Series 2015, 5.000%, 9/01/40
|
9/25 at 100.00
|
N/R
|
56,814
|
||||||
|
1,000
|
San Diego County Regional Transportation Commission, California, Sales Tax Revenue Bonds, Refunding Series 2012A, 5.000%, 4/01/42
|
4/22 at 100.00
|
AAA
|
1,144,620
|
||||||
|
170
|
San Francisco City and County Redevelopment Agency Successor Agency, California, Special Tax Bonds, Community Facilities District 7, Hunters Point Shipyard Phase One Improvements, Refunding Series 2014, 5.000%, 8/01/39
|
No Opt. Call
|
N/R
|
185,788
|
||||||
|
65
|
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–
|
78,547
|
||||||
|
San Francisco Redevelopment Financing Authority, California, Tax Allocation Revenue Bonds, Mission Bay South Redevelopment Project, Series 2011D:
|
||||||||||
|
65
|
7.000%, 8/01/33
|
2/21 at 100.00
|
BBB+
|
78,518
|
||||||
|
80
|
7.000%, 8/01/41
|
2/21 at 100.00
|
BBB+
|
96,638
|
||||||
|
2,750
|
San Jose Financing Authority, California, Lease Revenue Refunding Bonds, Convention Center Project, Series 2001F, 5.000%, 9/01/20 – NPFG Insured
|
3/16 at 100.00
|
AA
|
2,761,578
|
||||||
|
780
|
San Jose Redevelopment Agency, California, Tax Allocation Bonds, Merged Area Redevelopment Project, Refunding Series 2006D, 5.000%, 8/01/23 – AMBAC Insured
|
8/17 at 100.00
|
BBB+
|
822,198
|
||||||
|
San Jose Redevelopment Agency, California, Tax Allocation Bonds, Merged Area Redevelopment Project, Series 2006C:
|
||||||||||
|
400
|
5.000%, 8/01/24 – NPFG Insured
|
8/17 at 100.00
|
AA–
|
424,808
|
||||||
|
590
|
5.000%, 8/01/25 – NPFG Insured
|
8/17 at 100.00
|
AA–
|
626,073
|
||||||
|
110
|
Signal Hill Redevelopment Agency, California, Project 1 Tax Allocation Bonds, Series 2011, 7.000%, 10/01/26
|
4/21 at 100.00
|
N/R
|
131,263
|
||||||
|
1,330
|
Tehachapi Redevelopment Agency, California, Tax Allocation Bonds, Series 2007, 5.250%, 12/01/37 – RAAI Insured
|
12/17 at 100.00
|
AA
|
1,371,057
|
||||||
|
1,000
|
Virgin Islands Public Finance Authority, Matching Fund Loan Notes Revenue Bonds, Series 2012A, 5.000%, 10/01/32 – AGM Insured
|
10/22 at 100.00
|
AA
|
1,104,140
|
||||||
|
590
|
Vista Joint Powers Financing Authority, California, Special Tax Lease Revenue Refunding Bonds, Community Facilities District 90-2, Series 1997A, 5.875%, 9/01/20
|
3/16 at 100.00
|
N/R
|
591,422
|
||||||
|
1,730
|
West Contra Costa Healthcare District, California, Certificates of Participation, Series 2004, 5.375%, 7/01/21 – AMBAC Insured
|
5/16 at 100.00
|
N/R
|
1,736,557
|
|
Nuveen Investments
|
27
|
|
NCA
|
Nuveen California Municipal Value Fund, Inc.
|
|
|
Portfolio of Investments (continued)
|
February 29, 2016
|
|
Principal
|
Optional Call
|
|||||||||
|
Amount (000)
|
Description (1)
|
Provisions (2)
|
Ratings (3)
|
Value
|
||||||
|
Tax Obligation/Limited (continued)
|
||||||||||
|
$
|
190
|
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–
|
|
$
|
231,374
|
|||
|
56,515
|
Total Tax Obligation/Limited
|
61,450,944
|
||||||||
|
Transportation – 9.0% (9.1% of Total Investments)
|
||||||||||
|
1,820
|
Foothill/Eastern Transportation Corridor Agency, California, Toll Road Revenue Bonds, Refunding Junior Lien Series 2013C, 6.500%, 1/15/43
|
1/24 at 100.00
|
BB+
|
2,171,569
|
||||||
|
Foothill/Eastern Transportation Corridor Agency, California, Toll Road Revenue Bonds, Refunding Series 2013A:
|
||||||||||
|
1,945
|
5.000%, 1/15/42 – AGM Insured
|
1/24 at 100.00
|
AA
|
2,155,585
|
||||||
|
4,010
|
5.750%, 1/15/46
|
1/24 at 100.00
|
BBB–
|
4,695,590
|
||||||
|
4,010
|
6.000%, 1/15/53
|
1/24 at 100.00
|
BBB–
|
4,719,008
|
||||||
|
5,665
|
Los Angeles Department of Airports, California, Revenue Bonds, Los Angeles International Airport, Senior Lien Series 2015D, 5.000%, 5/15/41 (Alternative Minimum Tax)
|
5/25 at 100.00
|
AA
|
6,448,413
|
||||||
|
3,000
|
Los Angeles Harbors Department, California, Revenue Bonds, Series 2014C, 5.000%, 8/01/44
|
8/24 at 100.00
|
AA
|
3,460,440
|
||||||
|
185
|
Palm Springs Financing Authority, California, Palm Springs International Airport Revenue Bonds, Series 2006, 5.550%, 7/01/28 (Alternative Minimum Tax)
|
7/16 at 100.00
|
N/R
|
185,801
|
||||||
|
1,210
|
Port of Oakland, California, Revenue Bonds, Refunding Series 2012P, 5.000%, 5/01/29 (Alternative Minimum Tax)
|
No Opt. Call
|
A+
|
1,395,203
|
||||||
|
21,845
|
Total Transportation
|
25,231,609
|
||||||||
|
U.S. Guaranteed – 19.0% (19.2% of Total Investments) (4)
|
||||||||||
|
2,500
|
Bay Area Toll Authority, California, Revenue Bonds, San Francisco Bay Area Toll Bridge, Series 2006F, 5.000%, 4/01/31 (Pre-refunded 4/01/16) (UB)
|
4/16 at 100.00
|
AA (4)
|
2,510,900
|
||||||
|
1,600
|
California Municipal Financing Authority, Certificates of Participation, Community Hospitals of Central California, Series 2007, 5.250%, 2/01/27 (Pre-refunded 2/01/17)
|
2/17 at 100.00
|
N/R (4)
|
1,671,152
|
||||||
|
1,000
|
California Statewide Communities Development Authority, Revenue Bonds, ValleyCare Health System, Series 2007A, 5.125%, 7/15/31 (Pre-refunded 7/15/17)
|
7/17 at 100.00
|
AA+ (4)
|
1,064,470
|
||||||
|
1,500
|
Castaic Lake Water Agency, California, Certificates of Participation, Series 2006C, 5.000%, 8/01/36 (Pre-refunded 8/01/16) – NPFG Insured
|
8/16 at 100.00
|
AA– (4)
|
1,530,480
|
||||||
|
2,005
|
Contra Costa County, California, GNMA Mortgage-Backed Securities Program Home Mortgage Revenue Bonds, Series 1988, 8.250%, 6/01/21 (Alternative Minimum Tax) (ETM)
|
No Opt. Call
|
Aaa
|
2,384,025
|
||||||
|
410
|
Healdsburg Public Financing Authority, California, Wastewater Revenue Bonds, Series 2006, 5.000%, 4/01/36 (Pre-refunded 4/01/16) – NPFG Insured
|
4/16 at 100.00
|
AA (4)
|
411,784
|
||||||
|
1,525
|
Loma Linda, California, Hospital Revenue Bonds, Loma Linda University Medical Center, Series 2008A, 8.250%, 12/01/38 (Pre-refunded 12/01/17)
|
12/17 at 100.00
|
BB+ (4)
|
1,729,838
|
||||||
|
1,500
|
Los Angeles Unified School District, California, General Obligation Bonds, Election of 2004, Series 2006F, 5.000%, 7/01/24
(Pre-refunded 7/01/16) – FGIC Insured |
7/16 at 100.00
|
Aa2 (4)
|
1,524,615
|
||||||
|
18,475
|
Merced Irrigation District, California, Certificates of Participation, Water and Hydroelectric Series 2008B, 0.000%, 9/01/23 (Pre-refunded 9/01/16)
|
9/16 at 64.56
|
A (4)
|
11,901,594
|
||||||
|
5,710
|
Oceanside Unified School District, San Diego County, California, General Obligation Bonds, Election 2008 Series 2010B, 0.000%, 8/01/49 (Pre-refunded 8/01/20) – AGM Insured
|
8/20 at 13.60
|
AA (4)
|
736,990
|
||||||
|
8,565
|
Palmdale, California, GNMA Mortgage-Backed Securities Program Single Family Mortgage Revenue Bonds, Series 1988A, 0.000%, 3/01/17 (ETM)
|
No Opt. Call
|
AA+ (4)
|
8,524,316
|
||||||
|
1,130
|
Pittsburg Redevelopment Agency, California, Tax Allocation Bonds, Los Medanos Community Development Project, Refunding Series 2008A, 6.500%, 9/01/28 (Pre-refunded 9/01/18)
|
9/18 at 100.00
|
BBB– (4)
|
1,292,539
|
||||||
|
14,950
|
San Bernardino County, California, GNMA Mortgage-Backed Securities Program Single Family Home Mortgage Revenue Bonds, Series 1988A, 0.000%, 9/01/21 (Alternative Minimum Tax) (ETM)
|
No Opt. Call
|
Aaa
|
11,100,524
|
||||||
|
625
|
San Mateo Union High School District, San Mateo County, California, Certificates of Participation, Phase 1, Series 2007A, 5.000%, 12/15/30 (Pre-refunded 12/15/17) – AMBAC Insured
|
12/17 at 100.00
|
N/R (4)
|
674,569
|
||||||
|
3,000
|
Santa Clara County Financing Authority, California, Insured Revenue Bonds, El Camino Hospital, Series 2007A, 5.750%, 2/01/41
(Pre-refunded 8/01/17) – AMBAC Insured |
8/17 at 100.00
|
A+ (4)
|
3,223,800
|
|
28
|
Nuveen Investments
|
|
Principal
|
Optional Call
|
|||||||||
|
Amount (000)
|
Description (1)
|
Provisions (2)
|
Ratings (3)
|
Value
|
||||||
|
U.S. Guaranteed (4) (continued)
|
||||||||||
|
$
|
910
|
Santa Clara Valley Transportation Authority, California, Sales Tax Revenue Bonds, Series 2007A, 5.000%, 4/01/36 (Pre-refunded 4/01/17) – AMBAC Insured
|
4/17 at 100.00
|
AA+ (4)
|
|
$
|
955,946
|
|||
|
1,925
|
Travis Unified School District, Solano County, California, Certificates of Participation, Series 2006, 5.000%, 9/01/26 (Pre-refunded 9/01/16) – FGIC Insured
|
9/16 at 100.00
|
A3 (4)
|
1,971,277
|
||||||
|
67,330
|
Total U.S. Guaranteed
|
53,208,819
|
||||||||
|
Utilities – 1.5% (1.5% of Total Investments)
|
||||||||||
|
2,000
|
California Statewide Communities Development Authority, Certificates of Participation, Rio Bravo Fresno Project, Refunding Series 1999A, 6.500%, 12/01/18
|
6/16 at 100.00
|
N/R
|
2,000,180
|
||||||
|
1,800
|
Long Beach Bond Finance Authority, California, Natural Gas Purchase Revenue Bonds, Series 2007A, 5.500%, 11/15/37
|
No Opt. Call
|
A
|
2,264,940
|
||||||
|
3,800
|
Total Utilities
|
4,265,120
|
||||||||
|
Water and Sewer – 5.3% (5.4% of Total Investments)
|
||||||||||
|
California Pollution Control Financing Authority, Water Furnishing Revenue Bonds, Poseidon
|
||||||||||
|
Resources Channelside LP Desalination Project, Series 2012:
|
||||||||||
|
1,375
|
5.000%, 7/01/37 (Alternative Minimum Tax)
|
No Opt. Call
|
Baa3
|
1,507,660
|
||||||
|
2,675
|
5.000%, 11/21/45 (Alternative Minimum Tax)
|
No Opt. Call
|
Baa3
|
2,922,036
|
||||||
|
5,000
|
Los Angeles Department of Water and Power, California, Waterworks Revenue Bonds, Series 2007A-2, 5.000%, 7/01/44 – AMBAC Insured
|
7/17 at 100.00
|
AA
|
5,273,200
|
||||||
|
Madera Irrigation District. California, Water Revenue Refunding Bonds, Series 2008:
|
||||||||||
|
1,850
|
5.500%, 1/01/33
|
1/18 at 100.00
|
A
|
1,996,335
|
||||||
|
3,000
|
5.500%, 1/01/38
|
1/18 at 100.00
|
A
|
3,215,070
|
||||||
|
13,900
|
Total Water and Sewer
|
14,914,301
|
||||||||
|
$
|
290,970
|
Total Long-Tem Investments (cost $245,270,711)
|
276,770,929
|
|||||||
|
Floating Rate Obligations – (1.6)%
|
(4,490,000
|
)
|
||||||||
|
Other Assets Less Liabilities – 2.7%
|
7,599,563
|
|||||||||
|
Net Assets Applicable to Common Shares – 100%
|
$
|
279,880,492
|
|
(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 (not covered by the report of independent registered public accounting firm): 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 (not covered by the report of independent registered public accounting firm): Using the highest of Standard & Poor's Group ("Standard & Poor's"), Moody's Investors 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)
|
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. Certain bonds backed by U.S. Government or agency securities are regarded as having an implied rating equal to the rating of such securities.
|
|
(ETM)
|
Escrowed to maturity.
|
|
(UB)
|
Underlying bond of an inverse floating rate trust reflected as a financing transaction. See Notes to Financial Statements, Note 3 – Portfolio Securities and Investments in Derivatives, Inverse Floating Rate Securities for more information.
|
See accompanying notes to financial statements.
|
Nuveen Investments
|
29
|
|
NCB
|
||
|
Nuveen California Municipal Value Fund 2
|
||
|
Portfolio of Investments
|
February 29, 2016
|
|
Principal
|
Optional Call
|
|||||||||
|
Amount (000)
|
Description (1)
|
Provisions (2)
|
Ratings (3)
|
Value
|
||||||
|
LONG-TERM INVESTMENTS – 94.8% (100.0% of Total Investments)
|
||||||||||
|
MUNICIPAL BONDS – 94.8% (100.0% of Total Investments)
|
||||||||||
|
Consumer Staples – 5.9% (6.2% of Total Investments)
|
||||||||||
|
$
|
2,000
|
Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed Bonds, Series 2007A-1, 5.000%, 6/01/33
|
6/17 at 100.00
|
B–
|
|
$
|
1,898,280
|
|||
|
1,500
|
Tobacco Securitization Authority of Northern California, Tobacco Settlement Asset-Backed Bonds, Series 2005A-1, 5.500%, 6/01/45
|
5/16 at 100.00
|
B–
|
1,440,705
|
||||||
|
3,500
|
Total Consumer Staples
|
3,338,985
|
||||||||
|
Education and Civic Organizations – 2.2% (2.3% of Total Investments)
|
||||||||||
|
865
|
California Educational Facilities Authority, Revenue Bonds, University of the Pacific, Series 2009, 5.500%, 11/01/39
|
11/19 at 100.00
|
A2
|
971,983
|
||||||
|
100
|
California Municipal Finance Authority, Charter School Revenue Bonds, Rocketship Education, Multiple Projects, Series 2014A, 7.250%, 6/01/43
|
6/22 at 102.00
|
N/R
|
116,652
|
||||||
|
150
|
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
|
BBB–
|
169,155
|
||||||
|
1,115
|
Total Education and Civic Organizations
|
1,257,790
|
||||||||
|
Health Care – 13.4% (14.2% of Total Investments)
|
||||||||||
|
1,000
|
ABAG Finance Authority for Non-Profit Corporations, California, Cal-Mortgage Insured Health Facility Revenue Bonds, Saint Rose Hospital, Series 2009A, 6.000%, 5/15/29
|
5/19 at 100.00
|
AA–
|
1,140,200
|
||||||
|
1,900
|
California Health Facilities Financing Authority, Revenue Bonds, Catholic Healthcare West, Series 2009A, 6.000%, 7/01/39
|
7/19 at 100.00
|
A
|
2,175,386
|
||||||
|
1,000
|
California Health Facilities Financing Authority, Revenue Bonds, Children's Hospital of Orange County, Series 2009A, 6.500%, 11/01/38
|
11/19 at 100.00
|
A
|
1,180,130
|
||||||
|
70
|
California Health Facilities Financing Authority, Revenue Bonds, Lucile Salter Packard Children's Hospital, Series 2014A, 5.000%, 8/15/43
|
8/24 at 100.00
|
AA
|
80,280
|
||||||
|
75
|
California Health Facilities Financing Authority, Revenue Bonds, Providence Health & Services, Series 2014A, 5.000%, 10/01/38
|
10/24 at 100.00
|
AA
|
87,082
|
||||||
|
150
|
California Health Facilities Financing Authority, Revenue Bonds, Providence Health & Services, Series 2014B, 5.000%, 10/01/44
|
10/24 at 100.00
|
AA
|
171,708
|
||||||
|
500
|
California Municipal Financing Authority, Certificates of Participation, Community Hospitals of Central California, Series 2007, 5.250%, 2/01/27
|
2/17 at 100.00
|
A–
|
516,825
|
||||||
|
685
|
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
|
725,477
|
||||||
|
250
|
Palomar Pomerado Health Care District, California, Certificates of Participation, Series 2009, 6.625%, 11/01/29
|
11/19 at 100.00
|
Ba1
|
279,660
|
||||||
|
725
|
Palomar Pomerado Health Care District, California, Certificates of Participation, Series 2010, 6.000%, 11/01/41
|
11/20 at 100.00
|
Ba1
|
774,090
|
||||||
|
380
|
San Buenaventura, California, Revenue Bonds, Community Memorial Health System, Series 2011, 7.500%, 12/01/41
|
12/21 at 100.00
|
BB+
|
465,804
|
||||||
|
6,735
|
Total Health Care
|
7,596,642
|
||||||||
|
Housing/Multifamily – 1.2% (1.3% of Total Investments)
|
||||||||||
|
225
|
California Municipal Finance Authority, Mobile Home Park Revenue Bonds, Caritas Projects Series 2010A, 6.400%, 8/15/45
|
8/20 at 100.00
|
BBB
|
248,501
|
||||||
|
70
|
California Municipal Finance Authority, Mobile Home Park Revenue Bonds, Caritas Projects Series 2012A, 5.500%, 8/15/47
|
8/22 at 100.00
|
BBB
|
78,419
|
||||||
|
250
|
California Municipal Finance Authority, Mobile Home Park Revenue Bonds, Caritas Projects Series 2012B, 7.250%, 8/15/47
|
8/22 at 100.00
|
A1
|
290,598
|
|
30
|
Nuveen Investments
|
|
Principal
|
Optional Call
|
|||||||||
|
Amount (000)
|
Description (1)
|
Provisions (2)
|
Ratings (3)
|
Value
|
||||||
|
Housing/Multifamily (continued)
|
||||||||||
|
California Municipal Finance Authority, Mobile Home Park Senior Revenue Bonds, Caritas Affordable Housing, Inc. Projects, Series 2014A:
|
||||||||||
|
$
|
15
|
5.250%, 8/15/39
|
8/24 at 100.00
|
BBB
|
|
$
|
16,943
|
|||
|
40
|
5.250%, 8/15/49
|
8/24 at 100.00
|
BBB
|
45,034
|
||||||
|
600
|
Total Housing/Multifamily
|
679,495
|
||||||||
|
Housing/Single Family – 4.8% (5.0% of Total Investments)
|
||||||||||
|
240
|
California Housing Finance Agency, California, Home Mortgage Revenue Bonds, Series 2008L, 5.500%, 8/01/38
|
2/18 at 100.00
|
A
|
244,058
|
||||||
|
2,435
|
California Housing Finance Agency, Home Mortgage Revenue Bonds, Series 2006K, 4.625%, 8/01/26 (Alternative Minimum Tax)
|
5/16 at 100.00
|
A
|
2,452,849
|
||||||
|
2,675
|
Total Housing/Single Family
|
2,696,907
|
||||||||
|
Long-Term Care – 2.1% (2.3% of Total Investments)
|
||||||||||
|
1,000
|
California Health Facilities Financing Authority, Insured Revenue Bonds, Community Program for Persons with Developmental Disabilities, Series 2011A, 6.250%, 2/01/26
|
2/21 at 100.00
|
AA–
|
1,223,080
|
||||||
|
Tax Obligation/General – 12.6% (13.3% of Total Investments)
|
||||||||||
|
2,000
|
California State, General Obligation Bonds, Various Purpose Series 2007, 5.000%, 6/01/37 – NPFG Insured
|
6/17 at 100.00
|
AA–
|
2,097,480
|
||||||
|
2,100
|
Carlsbad Unified School District, San Diego County, California, General Obligation Bonds, Series 2009B, 0.000%, 5/01/34
|
5/24 at 100.00
|
AA
|
2,160,312
|
||||||
|
195
|
Oceanside Unified School District, San Diego County, California, General Obligation Bonds, Election 2008 Series 2010B, 0.000%, 8/01/49 – AGM Insured
|
8/20 at 13.60
|
AA
|
23,289
|
||||||
|
10,000
|
San Marcos Unified School District, San Diego County, California, General Obligation Bonds, 2010 Election, Series 2012B, 0.000%, 8/01/51
|
No Opt. Call
|
AA–
|
2,299,300
|
||||||
|
500
|
Western Riverside Water & Wastewater Financing Authority, California, Revenue Bonds, Western Municipal Water District, Series 2009, 5.625%,
9/01/39 – AGC Insured |
8/19 at 100.00
|
AA
|
564,140
|
||||||
|
14,795
|
Total Tax Obligation/General
|
7,144,521
|
||||||||
|
Tax Obligation/Limited – 18.4% (19.4% of Total Investments)
|
||||||||||
|
1,965
|
California State Public Works Board, Lease Revenue Bonds, Department of Education Riverside Campus Project, Series 2009B, 5.750%, 4/01/23
|
4/19 at 100.00
|
A+
|
2,261,656
|
||||||
|
500
|
California State Public Works Board, Lease Revenue Bonds, Various Capital Projects, Series 2010A-1, 6.000%, 3/01/35
|
3/20 at 100.00
|
A+
|
590,905
|
||||||
|
160
|
Fontana Redevelopment Agency, San Bernardino County, California, Tax Allocation Bonds, Jurupa Hills Redevelopment Project, Refunding Series 1997A, 5.500%, 10/01/27
|
4/16 at 100.00
|
A
|
160,702
|
||||||
|
Golden State Tobacco Securitization Corporation, California, Enhanced Tobacco Settlement Asset-Backed Revenue Bonds, Series 2015A:
|
||||||||||
|
180
|
5.000%, 6/01/40
|
6/25 at 100.00
|
A+
|
206,858
|
||||||
|
1,820
|
5.000%, 6/01/45
|
6/25 at 100.00
|
A+
|
2,086,830
|
||||||
|
145
|
Inglewood Redevelopment Agency, California, Tax Allocation Bonds, Merged Redevelopment Project, Subordinate Lien Series 2007A-1, 5.000%,
5/01/25 – AMBAC Insured |
5/17 at 100.00
|
BBB+
|
148,671
|
||||||
|
425
|
Lancaster Redevelopment Agency, California, Tax Allocation Bonds, Combined Redevelopment Project Areas Housing Programs, Series 2009, 6.875%, 8/01/39
|
No Opt. Call
|
BBB
|
487,496
|
||||||
|
80
|
National City Community Development Commission, California, Tax Allocation Bonds, National City Redevelopment Project, Series 2011, 6.500%, 8/01/24
|
8/21 at 100.00
|
A
|
101,235
|
||||||
|
30
|
Novato Redevelopment Agency, California, Tax Allocation Bonds, Hamilton Field Redevelopment Project, Series 2011, 6.750%, 9/01/40
|
9/21 at 100.00
|
BBB+
|
36,376
|
||||||
|
35
|
Patterson Public Finance Authority, California, Revenue Bonds, Community Facilities District 2001-1, Subordinate Lien Series 2013B, 5.875%, 9/01/39
|
9/23 at 100.00
|
N/R
|
38,737
|
||||||
|
Patterson Public Financing Authority, California, Revenue Bonds, Community Facilities District 2001-1, Senior Series 2013A:
|
||||||||||
|
210
|
5.250%, 9/01/30
|
9/23 at 100.00
|
N/R
|
232,806
|
||||||
|
190
|
5.750%, 9/01/39
|
9/23 at 100.00
|
N/R
|
211,679
|
|
Nuveen Investments
|
31
|
|
NCB
|
Nuveen California Municipal Value Fund 2
|
|
|
Portfolio of Investments (continued)
|
February 29, 2016
|
|
Principal
|
Optional Call
|
|||||||||
|
Amount (000)
|
Description (1)
|
Provisions (2)
|
Ratings (3)
|
Value
|
||||||
|
Tax Obligation/Limited (continued)
|
||||||||||
|
$
|
95
|
Rancho Santa Fe CSD Financing Authority, California, Revenue Bonds, Superior Lien Series 2011A, 5.750%, 9/01/30
|
9/21 at 100.00
|
BBB+
|
|
$
|
109,189
|
|||
|
15
|
Riverside County Redevelopment Agency, California, Tax Allocation Bonds, Jurupa Valley Project Area, Series 2011B, 6.500%, 10/01/25
|
10/21 at 100.00
|
A
|
18,721
|
||||||
|
20
|
San Clemente, California, Special Tax Revenue Bonds, Community Facilities District 2006-1 Marblehead Coastal, Series 2015, 5.000%, 9/01/40
|
9/25 at 100.00
|
N/R
|
22,726
|
||||||
|
1,000
|
San Francisco City and County Redevelopment Financing Authority, California, Tax Allocation Revenue Bonds, San Francisco Redevelopment Projects, Series 2009B, 6.625%, 8/01/39
|
8/19 at 100.00
|
AA–
|
1,145,980
|
||||||
|
1,500
|
San Francisco City and County, California, Certificates of Participation, Multiple Capital Improvement Projects, Series 2009A, 5.250%, 4/01/31
|
4/19 at 100.00
|
AA
|
1,683,780
|
||||||
|
15
|
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–
|
18,126
|
||||||
|
San Francisco Redevelopment Financing Authority, California, Tax Allocation Revenue Bonds, Mission Bay South Redevelopment Project, Series 2011D:
|
||||||||||
|
15
|
7.000%, 8/01/33
|
2/21 at 100.00
|
BBB+
|
18,120
|
||||||
|
15
|
7.000%, 8/01/41
|
2/21 at 100.00
|
BBB+
|
18,120
|
||||||
|
585
|
San Jose Redevelopment Agency, California, Tax Allocation Bonds, Merged Area Redevelopment Project, Refunding Series 2006D, 5.000%, 8/01/22 – AMBAC Insured
|
8/17 at 100.00
|
BBB+
|
617,503
|
||||||
|
125
|
San Jose Redevelopment Agency, California, Tax Allocation Bonds, Merged Area Redevelopment Project, Series 2006C, 5.000%, 8/01/25 – NPFG Insured
|
8/17 at 100.00
|
AA–
|
132,642
|
||||||
|
25
|
Signal Hill Redevelopment Agency, California, Project 1 Tax Allocation Bonds, Series 2011, 7.000%, 10/01/26
|
4/21 at 100.00
|
N/R
|
29,833
|
||||||
|
40
|
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–
|
48,893
|
||||||
|
9,190
|
Total Tax Obligation/Limited
|
10,427,584
|
||||||||
|
Transportation – 5.0% (5.3% of Total Investments)
|
||||||||||
|
395
|
Foothill/Eastern Transportation Corridor Agency, California, Toll Road Revenue Bonds, Refunding Junior Lien Series 2013C, 6.500%, 1/15/43
|
1/24 at 100.00
|
BB+
|
471,302
|
||||||
|
Foothill/Eastern Transportation Corridor Agency, California, Toll Road Revenue Bonds, Refunding Series 2013A:
|
||||||||||
|
865
|
5.750%, 1/15/46
|
1/24 at 100.00
|
BBB–
|
1,012,889
|
||||||
|
865
|
6.000%, 1/15/53
|
1/24 at 100.00
|
BBB–
|
1,017,941
|
||||||
|
305
|
Port of Oakland, California, Revenue Bonds, Refunding Series 2012P, 5.000%, 5/01/31 (Alternative Minimum Tax)
|
No Opt. Call
|
A+
|
347,602
|
||||||
|
2,430
|
Total Transportation
|
2,849,734
|
||||||||
|
U.S. Guaranteed – 13.0% (13.7% of Total Investments) (4)
|
||||||||||
|
California Educational Facilities Authority, Revenue Bonds, University of the Pacific, Series 2009:
|
||||||||||
|
55
|
5.500%, 11/01/39 (Pre-refunded 11/01/19)
|
11/19 at 100.00
|
N/R (4)
|
64,339
|
||||||
|
80
|
5.500%, 11/01/39 (Pre-refunded 11/01/19)
|
11/19 at 100.00
|
A2 (4)
|
93,647
|
||||||
|
350
|
California Municipal Financing Authority, Certificates of Participation, Community Hospitals of Central California, Series 2007, 5.250%, 2/01/27 (Pre-refunded 2/01/17)
|
2/17 at 100.00
|
N/R (4)
|
365,565
|
||||||
|
575
|
Lancaster Redevelopment Agency, California, Tax Allocation Bonds, Combined Redevelopment Project Areas Housing Programs, Series 2009, 6.875%, 8/01/39 (Pre-refunded 8/01/19)
|
8/19 at 100.00
|
N/R (4)
|
692,501
|
||||||
|
1,120
|
Oakland, California, General Obligation Bonds, Measure DD Series 2009B, 5.250%, 1/15/29 (Pre-refunded 1/15/19)
|
1/19 at 100.00
|
Aa2 (4)
|
1,263,987
|
||||||
|
3,805
|
Oceanside Unified School District, San Diego County, California, General Obligation Bonds, Election 2008 Series 2010B, 0.000%, 8/01/49 (Pre-refunded 8/01/20) – AGM Insured
|
8/20 at 13.60
|
AA (4)
|
491,111
|
||||||
|
2,000
|
Orange County Sanitation District, California, Certificates of Participation, Tender Option Bond Trust 3020, 18.111%, 2/01/35 (Pre-refunded 2/01/19) (IF) (5)
|
2/19 at 100.00
|
AAA
|
2,890,000
|
||||||
|
240
|
Pittsburg Redevelopment Agency, California, Tax Allocation Bonds, Los Medanos Community Development Project, Refunding Series 2008A, 6.500%, 9/01/28 (Pre-refunded 9/01/18)
|
9/18 at 100.00
|
BBB– (4)
|
274,522
|
|
32
|
Nuveen Investments
|
|
Principal
|
Optional Call
|
|||||||||
|
Amount (000)
|
Description (1)
|
Provisions (2)
|
Ratings (3)
|
Value
|
||||||
|
U.S. Guaranteed (4) (continued)
|
||||||||||
|
$
|
1,200
|
Westlake Village, California, Certificates of Participation, Financing Project, Series 2009, 5.000%, 6/01/39 (Pre-refunded 6/01/16)
|
6/16 at 100.00
|
AA+ (4)
|
|
$
|
1,214,904
|
|||
|
9,425
|
Total U.S. Guaranteed
|
7,350,576
|
||||||||
|
Utilities – 14.1% (14.8% of Total Investments)
|
||||||||||
|
1,000
|
M-S-R Energy Authority, California, Gas Revenue Bonds, Citigroup Prepay Contracts, Series 2009C, 6.500%, 11/01/39
|
No Opt. Call
|
A
|
1,399,410
|
||||||
|
2,495
|
Roseville Natural Gas Financing Authority, California, Gas Revenue Bonds, Series 2007, 5.000%, 2/15/17
|
No Opt. Call
|
A
|
2,578,982
|
||||||
|
2,400
|
Southern California Public Power Authority, Natural Gas Project 1 Revenue Bonds, Series 2007A, 5.250%, 11/01/24
|
No Opt. Call
|
A
|
2,864,136
|
||||||
|
1,000
|
Tuolumne Wind Project Authority, California, Revenue Bonds, Tuolumne Company Project, Series 2009A, 5.625%, 1/01/29
|
1/19 at 100.00
|
AA–
|
1,130,020
|
||||||
|
6,895
|
Total Utilities
|
7,972,548
|
||||||||
|
Water and Sewer – 2.1% (2.2% of Total Investments)
|
||||||||||
|
1,075
|
California Pollution Control Financing Authority, Water Furnishing Revenue Bonds, Poseidon Resources Channelside LP Desalination Project, Series 2012, 5.000%, 11/21/45 (Alternative Minimum Tax)
|
No Opt. Call
|
Baa3
|
1,174,276
|
||||||
|
$
|
59,435
|
Total Long-Term Investments (cost $45,099,563)
|
53,712,138
|
|||||||
|
Other Assets Less Liabilities – 5.2%
|
2,961,340
|
|||||||||
|
Net Assets Applicable to Common Shares – 100%
|
$
|
56,673,478
|
|
(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 (not covered by the report of independent registered public accounting firm): 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 (not covered by the report of independent registered public accounting firm): Using the highest of Standard & Poor's Group ("Standard & Poor's"), Moody's Investors 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)
|
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. Certain bonds backed by U.S. Government or agency securities are regarded as having an implied rating equal to the rating of such securities.
|
|
(5)
|
Investment, or portion of investment, has been pledged to collateralize the net payment obligations for investments in inverse floating rate transactions.
|
|
(IF)
|
Inverse floating rate investment.
|
See accompanying notes to financial statements.
|
Nuveen Investments
|
33
|
|
NKX
|
||
|
Nuveen California AMT-Free Municipal Income Fund
|
||
|
Portfolio of Investments
|
February 29, 2016
|
|
Principal
|
Optional Call
|
|||||||||
|
Amount (000)
|
Description (1)
|
Provisions (2)
|
Ratings (3)
|
Value
|
||||||
|
LONG-TERM INVESTMENTS – 140.0% (100.0% of Total Investments)
|
||||||||||
|
MUNICIPAL BONDS – 140.0% (100.0% of Total Investments)
|
||||||||||
|
Consumer Staples – 7.6% (5.4% of Total Investments)
|
||||||||||
|
$
|
995
|
California County Tobacco Securitization Agency, Tobacco Settlement Asset-Backed Bonds, Alameda County Tobacco Asset Securitization Corporation, Series 2002, 5.750%, 6/01/29
|
5/16 at 100.00
|
Baa1
|
|
$
|
1,004,940
|
|||
|
California County Tobacco Securitization Agency, Tobacco Settlement Asset-Backed Bonds, Los Angeles County Securitization Corporation, Series 2006A:
|
||||||||||
|
6,350
|
5.600%, 6/01/36
|
12/18 at 100.00
|
B
|
6,367,018
|
||||||
|
325
|
5.650%, 6/01/41
|
12/18 at 100.00
|
B2
|
325,377
|
||||||
|
2,780
|
5.700%, 6/01/46
|
12/18 at 100.00
|
B2
|
2,782,669
|
||||||
|
95
|
California County Tobacco Securitization Agency, Tobacco Settlement Asset-Backed Bonds, Sonoma County Tobacco Securitization Corporation, Series 2005, 4.250%, 6/01/21
|
5/16 at 100.00
|
BBB+
|
95,013
|
||||||
|
2,100
|
California Statewide Financing Authority, Tobacco Settlement Asset-Backed Bonds, Pooled Tobacco Securitization Program, Series 2002A, 5.625%, 5/01/29
|
5/16 at 100.00
|
BBB+
|
2,135,196
|
||||||
|
Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed Bonds, Series 2007A-1:
|
||||||||||
|
8,570
|
5.000%, 6/01/33
|
6/17 at 100.00
|
B–
|
8,134,130
|
||||||
|
1,950
|
5.750%, 6/01/47
|
6/17 at 100.00
|
B–
|
1,885,358
|
||||||
|
13,560
|
5.125%, 6/01/47
|
6/17 at 100.00
|
B–
|
12,173,219
|
||||||
|
14,820
|
Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed Bonds, Series 2007A-2, 5.300%, 6/01/37
|
6/22 at 100.00
|
B–
|
13,989,043
|
||||||
|
Tobacco Securitization Authority of Northern California, Tobacco Settlement Asset-Backed Bonds, Series 2005A-1:
|
||||||||||
|
8,450
|
5.375%, 6/01/38
|
5/16 at 100.00
|
B–
|
8,064,342
|
||||||
|
2,000
|
5.500%, 6/01/45
|
5/16 at 100.00
|
B–
|
1,920,940
|
||||||
|
61,995
|
Total Consumer Staples
|
58,877,245
|
||||||||
|
Education and Civic Organizations – 2.2% (1.6% of Total Investments)
|
||||||||||
|
1,050
|
ABAG Finance Authority for Non-Profit Corporations, California, Revenue Bonds, The Jackson Laboratory, Series 2012, 5.000%, 7/01/37
|
7/22 at 100.00
|
A1
|
1,178,741
|
||||||
|
3,000
|
California Educational Facilities Authority, Revenue Bonds, Pepperdine University, Series 2015, 5.000%, 9/01/40
|
9/25 at 100.00
|
AA
|
3,544,740
|
||||||
|
35
|
California Educational Facilities Authority, Revenue Bonds, University of Redlands, Series 2005A, 5.000%, 10/01/35
|
5/16 at 100.00
|
A3
|
35,116
|
||||||
|
4,475
|
California Municipal Finance Authority Charter School Revenue Bonds, Albert Einstein Academies Project, Series 2013A, 7.125%, 8/01/43
|
8/23 at 100.00
|
BB
|
5,275,533
|
||||||
|
1,780
|
California Municipal Finance Authority, Charter School Revenue Bonds, Rocketship Education, Multiple Projects, Series 2014A, 7.250%, 6/01/43
|
6/22 at 102.00
|
N/R
|
2,076,406
|
||||||
|
1,600
|
California Municipal Finance Authority, Revenue Bonds, Goodwill Industries of Sacramento Valley & Northern Nevada Project, Series 2012A, 6.875%, 1/01/42
|
1/22 at 100.00
|
N/R
|
1,791,360
|
||||||
|
2,000
|
California State University, Systemwide Revenue Bonds, Series 2015A, 5.000%, 11/01/38
|
11/25 at 100.00
|
Aa2
|
2,372,340
|
||||||
|
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
|
BBB–
|
338,310
|
||||||
|
185
|
California Statewide Communities Development Authority, Charter School Revenue Bonds, Rocketship 4 – Mosaic Elementary Charter School, Series 2011A, 8.500%, 12/01/41
|
12/21 at 100.00
|
N/R
|
223,491
|
||||||
|
14,425
|
Total Education and Civic Organizations
|
16,836,037
|
||||||||
|
Health Care – 15.5% (11.1% of Total Investments)
|
||||||||||
|
3,830
|
Antelope Valley Healthcare District, California, Revenue Bonds, Series 2011A, 6.875%, 3/01/26
|
No Opt. Call
|
Ba3
|
4,243,563
|
||||||
|
430
|
California Health Facilities Financing Authority, California, Revenue Bonds, Sutter Health, Refunding Series 2015A, 5.000%, 8/15/43
|
8/25 at 100.00
|
AA–
|
498,073
|
|
34
|
Nuveen Investments
|
|
Principal
|
Optional Call
|
|||||||||
|
Amount (000)
|
Description (1)
|
Provisions (2)
|
Ratings (3)
|
Value
|
||||||
|
Health Care (continued)
|
||||||||||
|
$
|
5,000
|
California Health Facilities Financing Authority, California, Revenue Bonds, Sutter Health, Series 2016A, 5.000%, 11/15/41
|
11/25 at 100.00
|
AA–
|
|
$
|
5,823,100
|
|||
|
1,630
|
California Health Facilities Financing Authority, Revenue Bonds, Children's Hospital Los Angeles, Series 2010A, 5.250%, 7/01/38 – AGC Insured
|
7/20 at 100.00
|
AA
|
1,821,721
|
||||||
|
1,255
|
California Health Facilities Financing Authority, Revenue Bonds, Children's Hospital Los Angeles, Series 2012A, 5.000%, 11/15/29
|
No Opt. Call
|
BBB+
|
1,406,089
|
||||||
|
1,000
|
California Health Facilities Financing Authority, Revenue Bonds, City of Hope National Medical Center, Series 2012A, 5.000%, 11/15/35
|
No Opt. Call
|
AA–
|
1,132,730
|
||||||
|
2,520
|
California Health Facilities Financing Authority, Revenue Bonds, Lucile Salter Packard Children's Hospital, Series 2014A, 5.000%, 8/15/43
|
8/24 at 100.00
|
AA
|
2,890,062
|
||||||
|
2,000
|
California Health Facilities Financing Authority, Revenue Bonds, Memorial Health Services, Series 2012A, 5.000%, 10/01/33
|
No Opt. Call
|
AA–
|
2,308,540
|
||||||
|
1,405
|
California Health Facilities Financing Authority, Revenue Bonds, Providence Health & Services, Series 2014A, 5.000%, 10/01/38
|
10/24 at 100.00
|
AA
|
1,631,346
|
||||||
|
2,800
|
California Health Facilities Financing Authority, Revenue Bonds, Providence Health & Services, Series 2014B, 5.000%, 10/01/44
|
10/24 at 100.00
|
AA
|
3,205,216
|
||||||
|
335
|
California Health Facilities Financing Authority, Revenue Bonds, Rady Children's Hospital – San Diego, Series 2011, 5.250%, 8/15/41
|
8/21 at 100.00
|
AA–
|
376,383
|
||||||
|
10,265
|
California Health Facilities Financing Authority, Revenue Bonds, Sutter Health, Series 2007A, 5.250%, 11/15/46
|
11/16 at 100.00
|
AA–
|
10,575,516
|
||||||
|
750
|
California Municipal Finance Authority, Revenue Bonds, Eisenhower Medical Center, Series 2010A, 5.750%, 7/01/40
|
7/20 at 100.00
|
Baa2
|
826,388
|
||||||
|
605
|
California Municipal Financing Authority, Certificates of Participation, Community Hospitals of Central California, Series 2007, 5.250%, 2/01/46
|
No Opt. Call
|
A–
|
617,191
|
||||||
|
1,200
|
California Statewide Communities Development Authority, California, Revenue Bonds, Loma Linda University Medical Center, Series 2014A, 5.250%, 12/01/44
|
12/24 at 100.00
|
BB+
|
1,299,204
|
||||||
|
4,920
|
California Statewide Communities Development Authority, Revenue Bonds, Saint Joseph Health System, Trust 2554, 18.712%, 7/01/47 – AGM Insured (IF)
|
7/18 at 100.00
|
AA
|
6,257,407
|
||||||
|
4,000
|
California Statewide Community Development Authority, Health Facility Revenue Bonds, Catholic Healthcare West, Insured Series 2008K, 5.500%,
7/01/41 – AGC Insured |
7/17 at 100.00
|
AA
|
4,202,440
|
||||||
|
California Statewide Community Development Authority, Revenue Bonds, Children's Hospital of Los Angeles, Series 2007:
|
||||||||||
|
2,995
|
5.000%, 8/15/39 – NPFG Insured
|
8/17 at 100.00
|
AA–
|
3,119,742
|
||||||
|
6,500
|
5.000%, 8/15/47
|
8/17 at 100.00
|
BBB+
|
6,728,865
|
||||||
|
California Statewide Community Development Authority, Revenue Bonds, Daughters of Charity Health System, Series 2005A:
|
||||||||||
|
835
|
5.500%, 7/01/24 (4)
|
5/16 at 100.00
|
CCC
|
836,077
|
||||||
|
4,240
|
5.500%, 7/01/30 (4)
|
5/16 at 100.00
|
CCC
|
4,239,703
|
||||||
|
730
|
California Statewide Community Development Authority, Revenue Bonds, Kaiser Permanente System, Series 2001C, 5.250%, 8/01/31
|
8/16 at 100.00
|
A+
|
742,191
|
||||||
|
6,160
|
California Statewide Community Development Authority, Revenue Bonds, Sherman Oaks Health System, Series 1998A, 5.000%, 8/01/22 – AMBAC Insured
|
No Opt. Call
|
AA–
|
7,105,190
|
||||||
|
7,555
|
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–
|
8,353,715
|
||||||
|
10,000
|
California Statewide Community Development Authority, Revenue Bonds, Sutter Health, Series 2003A, 5.000%, 8/15/38 – AMBAC Insured
|
8/17 at 100.00
|
AA–
|
10,554,700
|
||||||
|
2,600
|
Marysville, California, Revenue Bonds, The Fremont-Rideout Health Group, Series 2011, 5.250%, 1/01/42
|
1/21 at 100.00
|
BBB
|
2,872,038
|
||||||
|
Palomar Pomerado Health Care District, California, Certificates of Participation, Series 2009:
|
||||||||||
|
9,250
|
6.625%, 11/01/29
|
11/19 at 100.00
|
Ba1
|
10,347,420
|
||||||
|
7,500
|
6.750%, 11/01/39
|
11/19 at 100.00
|
Ba1
|
8,408,250
|
|
Nuveen Investments
|
35
|
|
NKX
|
Nuveen California AMT-Free Municipal Income Fund
|
|
|
Portfolio of Investments (continued)
|
February 29, 2016
|
|
Principal
|
Optional Call
|
|||||||||
|
Amount (000)
|
Description (1)
|
Provisions (2)
|
Ratings (3)
|
Value
|
||||||
|
Health Care (continued)
|
||||||||||
|
Palomar Pomerado Health Care District, California, Certificates of Participation, Series 2010:
|
||||||||||
|
$
|
1,500
|
6.000%, 11/01/30
|
11/20 at 100.00
|
Ba1
|
|
$
|
1,618,635
|
|||
|
2,595
|
6.000%, 11/01/41
|
11/20 at 100.00
|
Ba1
|
2,770,707
|
||||||
|
1,000
|
Rancho Mirage Joint Powers Financing Authority, California, Revenue Bonds, Eisenhower Medical Center, Refunding Series 2007A, 5.000%, 7/01/38
|
7/17 at 100.00
|
Baa2
|
1,031,680
|
||||||
|
850
|
San Buenaventura, California, Revenue Bonds, Community Memorial Health System, Series 2011, 7.500%, 12/01/41
|
12/21 at 100.00
|
BB+
|
1,041,930
|
||||||
|
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
|
AA–
|
1,045,080
|
||||||
|
109,255
|
Total Health Care
|
119,930,892
|
||||||||
|
Housing/Multifamily – 2.5% (1.8% of Total Investments)
|
||||||||||
|
480
|
California Municipal Finance Authority, Mobile Home Park Revenue Bonds, Caritas Projects Series 2010A, 6.400%, 8/15/45
|
8/20 at 100.00
|
BBB
|
530,136
|
||||||
|
155
|
California Municipal Finance Authority, Mobile Home Park Revenue Bonds, Caritas Projects Series 2012A, 5.500%, 8/15/47
|
8/22 at 100.00
|
BBB
|
173,642
|
||||||
|
350
|
California Municipal Finance Authority, Mobile Home Park Revenue Bonds, Caritas Projects Series 2012B, 7.250%, 8/15/47
|
8/22 at 100.00
|
A1
|
406,837
|
||||||
|
California Municipal Finance Authority, Mobile Home Park Revenue Bonds, Windsor Mobile Country Club Series 2013A:
|
||||||||||
|
2,000
|
5.625%, 11/15/33
|
11/23 at 100.00
|
BBB
|
2,251,820
|
||||||
|
8,000
|
6.000%, 11/15/48
|
11/23 at 100.00
|
BBB
|
9,145,680
|
||||||
|
California Municipal Finance Authority, Mobile Home Park Senior Revenue Bonds, Caritas Affordable Housing, Inc. Projects, Series 2014A:
|
||||||||||
|
260
|
5.250%, 8/15/39
|
8/24 at 100.00
|
BBB
|
293,678
|
||||||
|
705
|
5.250%, 8/15/49
|
8/24 at 100.00
|
BBB
|
793,731
|
||||||
|
3,285
|
Independent Cities Finance Authority, California, Mobile Home Park Revenue Bonds, Rancho Vallecitos Mobile Home Park, Series 2013, 5.000%, 4/15/38
|
4/23 at 100.00
|
A–
|
3,552,432
|
||||||
|
La Verne, California, Mobile Home Park Revenue Bonds, Copacabana Mobile Home Park, Refunding Series 2014:
|
||||||||||
|
670
|
5.000%, 6/15/44
|
6/24 at 100.00
|
A
|
743,814
|
||||||
|
185
|
5.000%, 6/15/49
|
6/24 at 100.00
|
A
|
204,259
|
||||||
|
1,060
|
Poway, California, Housing Revenue Bonds, Revenue Bonds, Poinsettia Mobile Home Park, Series 2003, 5.000%, 5/01/23
|
5/16 at 100.00
|
AA–
|
1,062,883
|
||||||
|
17,150
|
Total Housing/Multifamily
|
19,158,912
|
||||||||
|
Housing/Single Family – 0.1% (0.0% of Total Investments)
|
||||||||||
|
400
|
California Housing Finance Agency, California, Home Mortgage Revenue Bonds, Series 2008L, 5.500%, 8/01/38
|
2/18 at 100.00
|
A
|
406,764
|
||||||
|
Long-Term Care – 1.2% (0.9% 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
|
AA–
|
3,490,680
|
||||||
|
2,250
|
California Health Facilities Financing Authority, Insured Revenue Bonds, Community Program for Persons with Developmental Disabilities, Series 2011A, 6.250%, 2/01/26
|
2/21 at 100.00
|
AA–
|
2,751,930
|
||||||
|
1,300
|
California Health Facilities Financing Authority, Revenue Bonds, Northern California Presbyterian Homes & Services Inc., Refunding Series 2015, 5.000%, 7/01/39
|
7/25 at 100.00
|
AA–
|
1,499,472
|
||||||
|
1,500
|
California Statewide Communities Development Authority, Revenue Bonds, Front Porch Communities and Services Project, Series 2007A, 5.125%, 4/01/37
|
4/17 at 100.00
|
BBB+
|
1,535,730
|
||||||
|
8,050
|
Total Long-Term Care
|
9,277,812
|
||||||||
|
Tax Obligation/General – 33.2% (23.7% of Total Investments)
|
||||||||||
|
3,000
|
Alhambra Unified School District, Los Angeles County, California, General Obligation Bonds, Refunding Series 2012A, 5.000%, 8/01/29 – AGM Insured
|
8/22 at 100.00
|
Aa3
|
3,650,310
|
||||||
|
1,000
|
California State, General Obligation Bonds, Refunding Series 2011, 5.250%, 9/01/25
|
9/21 at 100.00
|
AA–
|
1,203,320
|
|
36
|
Nuveen Investments
|
|
Principal
|
Optional Call
|
|||||||||
|
Amount (000)
|
Description (1)
|
Provisions (2)
|
Ratings (3)
|
Value
|
||||||
|
Tax Obligation/General (continued)
|
||||||||||
|
$
|
4,910
|
California State, General Obligation Bonds, Various Purpose Refunding Series 2014, 5.000%, 10/01/32
|
10/24 at 100.00
|
AA–
|
|
$
|
5,891,214
|
|||
|
California State, General Obligation Bonds, Various Purpose Refunding Series 2015:
|
||||||||||
|
2,140
|
5.000%, 8/01/28
|
8/25 at 100.00
|
AA–
|
2,653,365
|
||||||
|
9,055
|
5.000%, 8/01/31
|
2/25 at 100.00
|
AA–
|
10,895,338
|
||||||
|
1,600
|
5.000%, 9/01/32
|
9/25 at 100.00
|
AA–
|
1,930,544
|
||||||
|
California State, General Obligation Bonds, Various Purpose Series 2009:
|
||||||||||
|
2,350
|
6.000%, 11/01/39
|
11/19 at 100.00
|
AA–
|
2,762,355
|
||||||
|
1,300
|
5.500%, 11/01/39
|
11/19 at 100.00
|
AA–
|
1,491,620
|
||||||
|
6,000
|
California State, General Obligation Bonds, Various Purpose Series 2010, 6.000%, 3/01/33
|
3/20 at 100.00
|
AA–
|
7,125,600
|
||||||
| California State, General Obligation Bonds, Various Purpose Series 2011: | ||||||||||
|
2,000
|
5.000%, 9/01/31
|
No Opt. Call
|
AA–
|
2,347,780
|
||||||
|
4,090
|
5.000%, 9/01/41
|
9/21 at 100.00
|
AA–
|
4,712,825
|
||||||
|
2,625
|
5.000%, 10/01/41
|
10/21 at 100.00
|
AA–
|
3,030,405
|
||||||
|
California State, General Obligation Bonds, Various Purpose Series 2013:
|
||||||||||
|
3,500
|
5.000%, 4/01/37
|
4/23 at 100.00
|
AA–
|
4,084,920
|
||||||
|
2,000
|
5.000%, 2/01/43
|
No Opt. Call
|
AA–
|
2,300,880
|
||||||
|
5,520
|
5.000%, 11/01/43
|
11/23 at 100.00
|
AA–
|
6,431,738
|
||||||
|
California State, General Obligation Bonds, Various Purpose Series 2014:
|
||||||||||
|
2,460
|
5.000%, 10/01/39
|
10/24 at 100.00
|
AA–
|
2,889,024
|
||||||
|
9,000
|
5.000%, 12/01/43
|
12/23 at 100.00
|
AA–
|
10,501,020
|
||||||
|
9,000
|
5.000%, 10/01/44
|
10/24 at 100.00
|
AA–
|
10,494,540
|
||||||
|
California State, General Obligation Bonds, Various Purpose Series 2015:
|
||||||||||
|
8,000
|
5.000%, 3/01/45
|
3/25 at 100.00
|
AA–
|
9,330,000
|
||||||
|
2,000
|
5.000%, 8/01/45
|
8/25 at 100.00
|
AA–
|
2,345,860
|
||||||
|
20,750
|
Coachella Valley Unified School District, Riverside County, California, General Obligation Bonds, Election 2005 Series 2010C, 0.000%, 8/01/43 – AGM Insured
|
No Opt. Call
|
AA
|
6,874,475
|
||||||
|
2,500
|
Corona-Norco Unified Sch |