UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY
 
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, Illinois 60606         
(Address of principal executive offices) (Zip code)
 

Kevin J. McCarthy
Vice President and Secretary
        333 West Wacker Drive, Chicago, Illinois 60606         
(Name and address of agent for service)
 
Registrant's telephone number, including area code:         312-917-7700        
 
Date of fiscal year end:            2/29          
 
Date of reporting period:         5/31/16         
 
Form N-Q is to be used by management investment companies, other than small business investment companies registered on Form N-5 (§§ 239.24 and 274.5 of this chapter), to file reports with the Commission, not later than 60 days after the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use the information provided on Form N-Q in its regulatory, disclosure review, inspection, and policymaking roles.
 
A registrant is required to disclose the information specified by Form N-Q, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-Q 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 the 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. § 3507.

 
 
Item 1. Schedule of Investments
 

    Portfolio of Investments      
         
   
Nuveen California Dividend Advantage Municipal Fund 2 (NVX)
      
   
May 31, 2016 (Unaudited)
      
 
 
Principal
    
Optional Call
    
Amount (000)
  
Description (1)
Provisions (2)
Ratings (3)
Value
   
LONG-TERM INVESTMENTS – 138.0% (100.0% of Total Investments)
      
           
   
MUNICIPAL BONDS – 138.0% (100.0% of Total Investments)
      
           
   
Consumer Staples – 9.1% (6.6% of Total Investments)
      
   
California County Tobacco Securitization Agency, Tobacco Settlement Asset-Backed Bonds,
      
   
Los Angeles County Securitization Corporation, Series 2006A:
      
$ 2,000
  
5.600%, 6/01/36
12/18 at 100.00
B
$ 2,029,520
2,000
  
5.650%, 6/01/41
12/18 at 100.00
B2
2,029,500
220
  
California County Tobacco Securitization Agency, Tobacco Settlement Asset-Backed Bonds, Sonoma
8/16 at 100.00
BBB+
220,070
   
County Tobacco Securitization Corporation, Series 2005, 4.250%, 6/01/21
      
1,595
  
California County Tobacco Securitization Agency, Tobacco Settlement Asset-Backed Bonds,
8/16 at 100.00
Baa1
1,606,659
   
Stanislaus County Tobacco Funding Corporation, Series 2002A, 5.500%, 6/01/33
      
   
Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed
      
   
Bonds, Series 2007A-1:
      
3,770
  
5.000%, 6/01/33
6/17 at 100.00
B–
3,794,731
6,040
  
5.750%, 6/01/47
6/17 at 100.00
B–
6,110,004
6,160
  
Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed
6/22 at 100.00
B–
6,264,350
   
Bonds, Series 2007A-2, 5.300%, 6/01/37
      
21,785
  
Total Consumer Staples
    
22,054,834
   
Education and Civic Organizations – 2.7% (2.0% of Total Investments)
      
1,775
  
ABAG Finance Authority for Non-Profit Corporations, California, Revenue Bonds, The Jackson
7/22 at 100.00
A1
2,019,648
   
Laboratory, Series 2012, 5.000%, 7/01/37
      
555
  
California Municipal Finance Authority, Charter School Revenue Bonds, Rocketship Education
6/22 at 102.00
N/R
651,637
   
Multiple Projects, Series 2014A , 7.250%, 6/01/43
      
2,500
  
California Municipal Finance Authority, Revenue Bonds, University of La Verne, Series 2010A,
6/20 at 100.00
A–
2,912,175
   
6.250%, 6/01/40
      
850
  
California Statewide Communities Development Authority, School Facility Revenue Bonds,
7/21 at 100.00
BBB–
988,899
   
Alliance College-Ready Public Schools, Series 2011A, 7.000%, 7/01/46
      
5,680
  
Total Education and Civic Organizations
    
6,572,359
   
Health Care – 16.7% (12.1% of Total Investments)
      
570
  
California Health Facilities Financing Authority, California, Revenue Bonds, Sutter Health,
8/25 at 100.00
AA–
674,162
   
Refunding Series 2015A, 5.000%, 8/15/43
      
395
  
California Health Facilities Financing Authority, Revenue Bonds, Lucile Salter Packard
8/24 at 100.00
AA
462,403
   
Children’s Hospital, Series 2014A, 5.000%, 8/15/43
      
435
  
California Health Facilities Financing Authority, Revenue Bonds, Providence Health & Services,
10/24 at 100.00
AA
513,465
   
Series 2014A, 5.000%, 10/01/38
      
855
  
California Health Facilities Financing Authority, Revenue Bonds, Providence Health & Services,
10/24 at 100.00
AA
1,000,145
   
Series 2014B, 5.000%, 10/01/44
      
895
  
California Health Facilities Financing Authority, Revenue Bonds, Rady Children’s Hospital –
8/21 at 100.00
Aa3
1,016,980
   
San Diego, Series 2011, 5.250%, 8/15/41
      
1,500
  
California Health Facilities Financing Authority, Revenue Bonds, Sutter Health, Series 2007A,
11/16 at 100.00
AA–
1,533,015
   
5.250%, 11/15/46
      
2,470
  
California Municipal Financing Authority, Certificates of Participation, Community Hospitals
2/17 at 100.00
A–
2,531,503
   
of Central California, Series 2007, 5.250%, 2/01/27
      
2,000
  
California Statewide Communities Development Authority, California, Revenue Bonds, Loma Linda
12/24 at 100.00
BB+
2,246,040
   
University Medical Center, Series 2014A, 5.250%, 12/01/44
      
600
  
California Statewide Communities Development Authority, California, Revenue Bonds, Loma Linda
6/26 at 100.00
BB
677,148
   
University Medical Center, Series 2016A, 5.250%, 12/01/56
      
1,300
  
California Statewide Communities Development Authority, Revenue Bonds, Adventist Health
3/26 at 100.00
A
1,566,513
   
System/West, Series 2015A, 5.000%, 3/01/35
      
3,200
  
California Statewide Communities Development Authority, Revenue Bonds, Kaiser Permanente,
4/22 at 100.00
AA–
3,694,528
   
Series 2012A, 5.000%, 4/01/42
      
5,245
  
California Statewide Community Development Authority, Revenue Bonds, Daughters of Charity
8/16 at 100.00
CCC
5,252,133
   
Health System, Series 2005A, 5.500%, 7/01/35 (4)
      
425
  
California Statewide Community Development Authority, Revenue Bonds, Kaiser Permanente
8/16 at 100.00
AA–
427,950
   
System, Series 2001C, 5.250%, 8/01/31
      
1,035
  
California Statewide Community Development Authority, Revenue Bonds, Sutter Health, Series
8/18 at 100.00
AA
1,101,364
   
2004D, 5.050%, 8/15/38 – AGM Insured
      
1,610
  
Madera County, California, Certificates of Participation, Children’s Hospital Central
3/20 at 100.00
AA–
1,804,762
   
California, Series 2010, 5.375%, 3/15/36
      
455
  
Oak Valley Hospital District, Stanislaus County, California, Revenue Bonds, Series 2010A,
11/20 at 100.00
BB
481,727
   
6.500%, 11/01/29
      
1,500
  
Palomar Pomerado Health Care District, California, Certificates of Participation, Series 2009,
11/19 at 100.00
Ba1
1,673,475
   
6.625%, 11/01/29
      
4,800
  
Palomar Pomerado Health Care District, California, Certificates of Participation, Series 2010,
11/20 at 100.00
Ba1
5,136,816
   
6.000%, 11/01/41
      
5,785
  
Rancho Mirage Joint Powers Financing Authority, California, Revenue Bonds, Eisenhower Medical
7/17 at 100.00
Baa2
5,975,327
   
Center, Refunding Series 2007A, 5.000%, 7/01/38
      
2,250
  
San Buenaventura, California, Revenue Bonds, Community Memorial Health System, Series 2011,
12/21 at 100.00
BB+
2,782,350
   
7.500%, 12/01/41
      
37,325
  
Total Health Care
    
40,551,806
   
Housing/Multifamily – 1.4% (1.0% of Total Investments)
      
1,280
  
California Municipal Finance Authority, Mobile Home Park Revenue Bonds, Caritas Projects
8/20 at 100.00
BBB
1,425,498
   
Series 2010A, 6.400%, 8/15/45
      
410
  
California Municipal Finance Authority, Mobile Home Park Revenue Bonds, Caritas Projects
8/22 at 100.00
BBB
466,473
   
Series 2012A, 5.500%, 8/15/47
      
940
  
California Municipal Finance Authority, Mobile Home Park Revenue Bonds, Caritas Projects
8/22 at 100.00
A1
1,099,574
   
Series 2012B, 7.250%, 8/15/47
      
   
California Municipal Finance Authority, Mobile Home Park Senior Revenue Bonds, Caritas
      
   
Affordable Housing, Inc. Projects, Series 2014A:
      
80
  
5.250%, 8/15/39
8/24 at 100.00
BBB
91,315
220
  
5.250%, 8/15/49
8/24 at 100.00
BBB
250,151
2,930
  
Total Housing/Multifamily
    
3,333,011
   
Housing/Single Family – 3.0% (2.2% of Total Investments)
      
5,775
  
California Housing Finance Agency, California, Home Mortgage Revenue Bonds, Series 2006M,
8/16 at 100.00
A
5,778,581
   
4.650%, 8/01/31 (Alternative Minimum Tax)
      
1,490
  
California Housing Finance Agency, California, Home Mortgage Revenue Bonds, Series 2007G,
2/17 at 100.00
A
1,508,863
   
5.050%, 2/01/29 (Alternative Minimum Tax)
      
7,265
  
Total Housing/Single Family
    
7,287,444
   
Industrials – 0.0% (0.0% of Total Investments)
      
3,175
  
California Statewide Communities Development Authority, Revenue Bonds, EnerTech Regional
No Opt. Call
N/R
9,366
   
Biosolids Project, Series 2007A, 5.500%, 12/01/33 (Alternative Minimum Tax) (5)
      
   
Tax Obligation/General – 32.7% (23.7% of Total Investments)
      
1,300
  
Alhambra Unified School District, Los Angeles County, California, General Obligation Bonds,
8/22 at 100.00
Aa2
1,573,052
   
Refunding Series 2012A, 5.000%, 8/01/29 – AGM Insured
      
4,000
  
California State, General Obligation Bonds, Various Purpose Refunding Series 2014,
8/24 at 100.00
AA–
4,930,400
   
5.000%, 8/01/31
      
   
California State, General Obligation Bonds, Various Purpose Refunding Series 2015:
      
675
  
5.000%, 8/01/32
2/25 at 100.00
AA–
822,778
2,000
  
5.000%, 8/01/34
8/25 at 100.00
AA–
2,445,800
13,850
  
California State, General Obligation Bonds, Various Purpose Series 2009, 6.000%, 4/01/38
4/19 at 100.00
AA–
15,817,254
   
California State, General Obligation Bonds, Various Purpose Series 2010:
      
2,000
  
6.000%, 3/01/33
3/20 at 100.00
AA–
2,372,000
1,000
  
5.250%, 11/01/40
11/20 at 100.00
AA–
1,181,270
   
California State, General Obligation Bonds, Various Purpose Series 2011:
      
4,850
  
5.250%, 10/01/28
No Opt. Call
AA–
5,831,155
2,300
  
5.000%, 9/01/41
9/21 at 100.00
AA–
2,692,219
2,190
  
5.000%, 10/01/41
10/21 at 100.00
AA–
2,569,155
   
California State, General Obligation Bonds, Various Purpose Series 2013:
      
2,500
  
5.000%, 2/01/43
No Opt. Call
AA–
2,945,350
2,240
  
5.000%, 11/01/43
11/23 at 100.00
AA–
2,680,541
   
California State, General Obligation Bonds, Various Purpose Series 2014:
      
2,000
  
5.000%, 5/01/32
5/24 at 100.00
AA–
2,443,800
1,815
  
5.000%, 10/01/44
10/24 at 100.00
AA–
2,183,118
32,730
  
Desert Community College District, Riverside County, California, General Obligation Bonds,
No Opt. Call
AA
6,680,193
   
Election 2004 Series 2007C, 0.000%, 8/01/46 – AGM Insured
      
1,285
  
Los Angeles Unified School District, Los Angeles County, California, General Obligation Bonds,
7/19 at 100.00
Aa2
1,441,719
   
Series 2009D, 5.000%, 7/01/27
      
1,265
  
Palomar Pomerado Health, California, General Obligation Bonds, Capital Appreciation, Election
8/17 at 100.00
AA–
1,318,927
   
of 2004, Series 2007A, 5.000%, 8/01/32 – NPFG Insured
      
10,330
  
Palomar Pomerado Health, California, General Obligation Bonds, Convertible Capital
No Opt. Call
A+
4,913,258
   
Appreciation, Election 2004 Series 2010A, 0.000%, 8/01/35
      
2,000
  
Paramount Unified School District, Los Angeles County, California, General Obligation Bonds,
No Opt. Call
A+
1,889,900
   
Election 2006 Series 2011, 0.000%, 8/01/45
      
2,000
  
Puerto Rico, General Obligation Bonds, Public Improvement Series 2002A, 5.500%, 7/01/20 –
No Opt. Call
AA–
2,114,620
   
NPFG Insured
      
1,425
  
San Joaquin Delta Community College District, California, General Obligation Bonds, Refunding
8/25 at 100.00
Aa2
1,758,550
   
Series 2015A, 5.000%, 8/01/32
      
21,000
  
San Marcos Unified School District, San Diego County, California, General Obligation Bonds,
No Opt. Call
AA–
5,506,410
   
2010 Election, Series 2012B, 0.000%, 8/01/51
      
1,000
  
Southwestern Community College District, San Diego County, California, General Obligation
8/21 at 100.00
Aa2
1,169,640
   
Bonds, Election of 2008, Series 2011C, 5.250%, 8/01/36
      
1,600
  
Yuba Community College District, California, General Obligation Bonds, Election 2006 Series
8/21 at 100.00
Aa2
1,876,608
   
2011C, 5.250%, 8/01/47
      
117,355
  
Total Tax Obligation/General
    
79,157,717
   
Tax Obligation/Limited – 24.6% (17.8% of Total Investments)
      
7,000
  
California State Public Works Board, Lease Revenue Bonds, Department of Corrections &
9/23 at 100.00
A+
8,618,330
   
Rehabilitation, Various Correctional Facilities Series 2013F, 5.250%, 9/01/31
      
3,525
  
California State Public Works Board, Lease Revenue Bonds, Department of Corrections &
9/24 at 100.00
A+
4,207,123
   
Rehabilitation, Various Correctional Facilities Series 2014A, 5.000%, 9/01/39
      
3,770
  
California State Public Works Board, Lease Revenue Bonds, Various Capital Projects, Series
11/22 at 100.00
A+
4,425,528
   
2012G, 5.000%, 11/01/37
      
4,520
  
California State Public Works Board, Lease Revenue Bonds, Various Capital Projects, Series
9/24 at 100.00
A+
5,394,665
   
2014E, 5.000%, 9/01/39
      
960
  
Fontana Redevelopment Agency, San Bernardino County, California, Tax Allocation Bonds, Jurupa
10/16 at 100.00
A
975,149
   
Hills Redevelopment Project, Refunding Series 1997A, 5.500%, 10/01/27
      
10,000
  
Golden State Tobacco Securitization Corporation, California, Enhanced Tobacco Settlement
6/25 at 100.00
A+
11,826,800
   
Asset-Backed Revenue Bonds, Refunding Series 2015A, 5.000%, 6/01/45
      
2,000
  
Government of Guam, Business Privilege Tax Bonds, Refunding Series 2015D, 5.000%, 11/15/28
11/25 at 100.00
A
2,390,360
1,500
  
Hesperia Unified School District, San Bernardino County, California, Certificates of
2/23 at 100.00
AA
1,726,920
   
Participation, Series 2013A, 5.000%, 2/01/38 – BAM Insured
      
870
  
Inglewood Redevelopment Agency, California, Tax Allocation Bonds, Merged Redevelopment
5/17 at 100.00
BBB+
891,811
   
Project, Subordinate Lien Series 2007A-1, 5.000%, 5/01/23 – AMBAC Insured
      
   
Irvine Unified School District, California, Special Tax Bonds, Community Facilities District
      
   
Series 2006A:
      
205
  
5.000%, 9/01/26
9/16 at 100.00
N/R
206,878
470
  
5.125%, 9/01/36
9/16 at 100.00
N/R
473,624
1,000
  
Lake Elsinore Public Financing Authority, California, Local Agency Revenue Bonds, Refunding
9/25 at 100.00
N/R
1,119,560
   
Series 2015, 5.000%, 9/01/40
      
415
  
Lammersville School District, San Joaquin County, California, Special Tax Bonds, Community
9/16 at 100.00
N/R
417,805
   
Facilities District 2002 Mountain House, Series 2006, 5.125%, 9/01/35
      
800
  
Los Angeles Community Redevelopment Agency, California, Lease Revenue Bonds, Vermont
8/16 at 100.00
A1
802,728
   
Manchester Social Services Project, Series 2005, 5.000%, 9/01/37 – AMBAC Insured
      
1,350
  
Los Angeles County Public Works Financing Authority, California, Lease Revenue Bonds, Multiple
No Opt. Call
AA
1,582,983
   
Capital Facilities Project II, Series 2012, 5.000%, 8/01/42
      
750
  
Lynwood Redevelopment Agency, California, Project A Revenue Bonds, Subordinate Lien Series
9/21 at 100.00
A–
935,408
   
2011A, 7.000%, 9/01/31
      
475
  
National City Community Development Commission, California, Tax Allocation Bonds, National
8/21 at 100.00
A
595,707
   
City Redevelopment Project, Series 2011, 6.500%, 8/01/24
      
175
  
Novato Redevelopment Agency, California, Tax Allocation Bonds, Hamilton Field Redevelopment
9/21 at 100.00
BBB+
212,651
   
Project, Series 2011, 6.750%, 9/01/40
      
195
  
Patterson Public Finance Authority, California, Revenue Bonds, Community Facilities District 2001-1,
9/23 at 100.00
N/R
217,714
   
Subordinate Lien Series 2013B , 5.875%, 9/01/39
      
   
Patterson Public Financing Authority, California, Revenue Bonds, Community Facilities District
      
   
2001-1, Senior Series 2013A:
      
1,190
  
5.250%, 9/01/30
9/23 at 100.00
N/R
1,331,955
1,075
  
5.750%, 9/01/39
9/23 at 100.00
N/R
1,208,375
6,275
  
Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, Series 2007A, 0.000%,
No Opt. Call
AA–
975,449
   
8/01/45 – NPFG Insured
      
550
  
Rancho Santa Fe CSD Financing Authority, California, Revenue Bonds, Superior Lien Series
9/21 at 100.00
A–
643,808
   
2011A, 5.750%, 9/01/30
      
100
  
Riverside County Redevelopment Agency, California, Tax Allocation Bonds, Jurupa Valley Project
10/21 at 100.00
A
123,810
   
Area, Series 2011B, 6.500%, 10/01/25
      
225
  
Roseville, California, Special Tax Bonds, Community Facilities District 1 Westpark, Refunding
9/25 at 100.00
N/R
257,582
   
Series 2015, 5.000%, 9/01/37
      
   
San Buenaventura Redevelopment Agency, California, Merged Project Areas Tax Allocation Bonds,
      
   
Series 2008:
      
1,000
  
7.750%, 8/01/28
8/16 at 102.00
A
1,031,790
1,325
  
8.000%, 8/01/38
8/16 at 102.00
A
1,366,592
60
  
San Clemente, California, Special Tax Revenue Bonds, Community Facilities District 2006-1
9/25 at 100.00
N/R
68,447
   
Marblehead Coastal, Series 2015, 5.000%, 9/01/40
      
990
  
San Diego, California, Special Tax Bonds, Community Facilities District 4 Black Mountain Ranch
9/16 at 100.00
N/R
1,016,819
   
Villages, Series 2008A, 6.000%, 9/01/37
      
210
  
San Francisco City and County Redevelopment Agency Successor Agency, California, Special Tax
No Opt. Call
N/R
231,949
   
Bonds, Community Facilities District 7, Hunters Point Shipyard Phase One Improvements,
      
   
Refunding Series 2014, 5.000%, 8/01/39
      
995
  
San Jose Redevelopment Agency, California, Tax Allocation Bonds, Merged Area Redevelopment
8/17 at 100.00
BBB+
1,036,770
   
Project, Refunding Series 2006D, 5.000%, 8/01/23 – AMBAC Insured
      
   
San Jose Redevelopment Agency, California, Tax Allocation Bonds, Merged Area Redevelopment
      
   
Project, Series 2006C:
      
1,100
  
5.000%, 8/01/24 – NPFG Insured
8/17 at 100.00
AA–
1,153,273
765
  
5.000%, 8/01/25 – NPFG Insured
8/17 at 100.00
AA–
801,498
140
  
Signal Hill Redevelopment Agency, California, Project 1 Tax Allocation Bonds, Series 2011,
4/21 at 100.00
N/R
167,415
   
7.000%, 10/01/26
      
930
  
Temecula Public Financing Authority, California, Special Tax Bonds, Community Facilities
9/16 at 100.00
N/R
930,781
   
District 03-02 Roripaugh, Series 2006, 5.500%, 9/01/36
      
240
  
Yorba Linda Redevelopment Agency, Orange County, California, Tax Allocation Revenue Bonds,
9/21 at 100.00
A–
293,381
   
Yorba Linda Redevelopment Project, Subordinate Lien Series 2011A, 6.500%, 9/01/32
      
57,150
  
Total Tax Obligation/Limited
    
59,661,438
   
Transportation – 15.2% (11.0% of Total Investments)
      
2,000
  
Bay Area Toll Authority, California, Revenue Bonds, San Francisco Bay Area Toll Bridge, Series
4/23 at 100.00
AA–
2,373,820
   
2013S-4, 5.250%, 4/01/48
      
2,240
  
Foothill/Eastern Transportation Corridor Agency, California, Toll Road Revenue Bonds,
1/24 at 100.00
BB+
2,691,875
   
Refunding Junior Lien Series 2013C, 6.500%, 1/15/43
      
   
Foothill/Eastern Transportation Corridor Agency, California, Toll Road Revenue Bonds,
      
   
Refunding Series 2013A:
      
4,940
  
5.750%, 1/15/46
1/24 at 100.00
BBB–
5,829,793
4,935
  
6.000%, 1/15/53
1/24 at 100.00
BBB–
5,851,874
   
Los Angeles Department of Airports, California, Revenue Bonds, Los Angeles International
      
   
Airport, Senior Lien Series 2015D:
      
870
  
5.000%, 5/15/31 (Alternative Minimum Tax)
5/25 at 100.00
AA
1,045,862
3,810
  
5.000%, 5/15/33 (Alternative Minimum Tax)
5/25 at 100.00
AA
4,539,653
1,000
  
5.000%, 5/15/36 (Alternative Minimum Tax)
5/25 at 100.00
AA
1,181,000
4,000
  
Los Angeles Harbors Department, California, Revenue Bonds, Refunding Series 2014B,
8/24 at 100.00
AA
4,763,720
   
5.000%, 8/01/44
      
   
Port of Oakland, California, Revenue Bonds, Refunding Series 2012P:
      
1,545
  
5.000%, 5/01/29 (Alternative Minimum Tax)
No Opt. Call
A+
1,800,219
1,000
  
5.000%, 5/01/31 (Alternative Minimum Tax)
No Opt. Call
A+
1,152,130
1,000
  
Riverside County Transportation Commission, California, Toll Revenue Senior Lien Bonds, Series
6/23 at 100.00
BBB–
1,175,230
   
2013A, 5.750%, 6/01/44
      
4,000
  
San Diego County Regional Airport Authority, California, Airport Revenue Bonds, Senior Series
7/23 at 100.00
A+
4,517,880
   
2013B, 5.000%, 7/01/43 (Alternative Minimum Tax)
      
31,340
  
Total Transportation
    
36,923,056
   
U.S. Guaranteed – 9.9% (7.2% of Total Investments) (6)
      
1,430
  
Bay Area Toll Authority, California, Revenue Bonds, San Francisco Bay Area Toll Bridge, Tender
4/18 at 100.00
AA (6)
1,893,220
   
Option Bond Trust 3211, 12.798%, 10/01/32 (Pre-refunded 4/01/18) (IF)
      
1,745
  
California Municipal Financing Authority, Certificates of Participation, Community Hospitals
2/17 at 100.00
N/R (6)
1,799,601
   
of Central California, Series 2007, 5.250%, 2/01/27 (Pre-refunded 2/01/17)
      
2,945
  
California State Public Works Board, Lease Revenue Bonds, University of California Regents,
3/18 at 100.00
Aaa
3,390,637
   
Tender Option Bond Trust 2016-XG0003, 8.861%, 3/01/33 (Pre-refunded 3/01/18) (IF) (7)
      
2,225
  
California Statewide Communities Development Authority, Revenue Bonds, ValleyCare Health
7/17 at 100.00
AA+ (6)
2,337,763
   
System, Series 2007A, 5.125%, 7/15/31 (Pre-refunded 7/15/17)
      
1,400
  
Castaic Lake Water Agency, California, Certificates of Participation, Series 2006C, 5.000%,
8/16 at 100.00
AA (6)
1,410,514
   
8/01/36 (Pre-refunded 8/01/16) – NPFG Insured
      
1,785
  
Hawthorne Community Redevelopment Agency, California, Tax Allocation Bonds, Project Area 2,
9/16 at 100.00
N/R (6)
1,806,206
   
Series 2006, 5.250%, 9/01/36 (Pre-refunded 9/01/16) – SYNCORA GTY Insured
      
1,800
  
Hesperia Unified School District, San Bernardino County, California, Certificates of
2/17 at 100.00
A (6)
1,853,586
   
Participation, Capital Improvement, Series 2007, 5.000%, 2/01/41 (Pre-refunded 2/01/17) –
      
   
AMBAC Insured
      
2,000
  
Loma Linda, California, Hospital Revenue Bonds, Loma Linda University Medical Center, Series
12/17 at 100.00
BB (6)
2,227,760
   
2008A, 8.250%, 12/01/38 (Pre-refunded 12/01/17)
      
3,085
  
Pittsburg Redevelopment Agency, California, Tax Allocation Bonds, Los Medanos Community
9/18 at 100.00
BBB– (6)
3,481,824
   
Development Project, Refunding Series 2008A, 6.500%, 9/01/28 (Pre-refunded 9/01/18)
      
2,000
  
Puerto Rico Public Finance Corporation, Commonwealth Appropriation Bonds, Series 2002E,
No Opt. Call
C (6)
2,687,660
   
6.000%, 8/01/26 (ETM)
      
80
  
San Francisco Redevelopment Finance Authority, California, Tax Allocation Revenue Bonds,
2/21 at 100.00
A– (6)
100,400
   
Mission Bay North Redevelopment Project, Series 2011C, 6.750%, 8/01/41 (Pre-refunded 2/01/21)
      
   
San Francisco Redevelopment Financing Authority, California, Tax Allocation Revenue Bonds,
      
   
Mission Bay South Redevelopment Project, Series 2011D:
      
85
  
7.000%, 8/01/33 (Pre-refunded 2/01/21)
2/21 at 100.00
BBB+ (6)
107,550
105
  
7.000%, 8/01/41 (Pre-refunded 2/01/21)
2/21 at 100.00
BBB+ (6)
132,855
825
  
San Mateo Union High School District, San Mateo County, California, Certificates of Participation,
12/17 at 100.00
N/R (6)
880,473
   
Phase 1, Series 2007A, 5.000%, 12/15/30 (Pre-refunded 12/15/17) – AMBAC Insured
      
21,510
  
Total U.S. Guaranteed
    
24,110,049
   
Utilities – 10.8% (7.8% of Total Investments)
      
2,355
  
Long Beach Bond Finance Authority, California, Natural Gas Purchase Revenue Bonds, Series
No Opt. Call
A
2,914,831
   
2007A, 5.000%, 11/15/35
      
14,000
  
Los Angeles Department of Water and Power, California, Power System Revenue Bonds, Series
7/22 at 100.00
Aa2
16,447,056
   
2012B, 5.000%, 7/01/43
      
1,500
  
Southern California Public Power Authority, California, Revenue Bonds, Apex Power Project
7/24 at 100.00
AA–
1,808,205
   
Series 2014A, 5.000%, 7/01/38
      
4,000
  
Southern California Public Power Authority, Natural Gas Project 1 Revenue Bonds, Series 2007A,
No Opt. Call
A
4,967,720
   
5.000%, 11/01/33
      
21,855
  
Total Utilities
    
26,137,812
   
Water and Sewer – 11.9% (8.6% of Total Investments)
      
5,240
  
California Pollution Control Financing Authority, Water Furnishing Revenue Bonds, Poseidon
No Opt. Call
Baa3
5,784,908
   
Resources Channelside LP Desalination Project, Series 2012, 5.000%, 11/21/45 (Alternative
      
   
Minimum Tax)
      
4,265
  
Escondido Joint Powers Financing Authority, California, Revenue Bonds, Water System Financing,
3/22 at 100.00
AA–
4,994,656
   
Series 2012, 5.000%, 9/01/41
      
7,890
  
Los Angeles Department of Water and Power, California, Waterworks Revenue Bonds, Series 2014A,
7/24 at 100.00
AA+
9,465,949
   
5.000%, 7/01/44
      
1,160
  
Metropolitan Water District of Southern California, Waterworks Revenue Bonds, Tender Option
7/19 at 100.00
AAA
1,754,662
   
Bond Trust 09-8B, 16.567%, 7/01/35 (IF) (7)
      
5,825
  
Sacramento, California, Wastewater Revenue Bonds, Series 2013, 5.000%, 9/01/42
9/23 at 100.00
AA
6,722,283
24,380
  
Total Water and Sewer
    
28,722,458
$ 351,750
  
Total Long-Term Investments (cost $299,031,534)
    
334,521,350
   
Variable Rate Demand Preferred Shares, at Liquidation Preference – (40.4)% (8)
    
(98,000,000)
   
Other Assets Less Liabilities – 2.4%
    
5,833,934
   
Net Assets Applicable to Common Shares – 100%
    
$ 242,355,284
 
Fair Value Measurements
Fair value is defined as the price that would be received upon selling an investment or transferring a liability in an orderly transaction to an independent buyer in the principal or most advantageous market for the investment. A three-tier hierarchy is used to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability. Observable inputs are based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability. Unobservable inputs are based on the best information available in the circumstances. The following is a summary of the three-tiered hierarchy of valuation input levels.
Level 1 – Inputs are unadjusted and prices are determined using quoted prices in active markets for identical securities.
Level 2 – Prices are determined using other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
Level 3 – Prices are determined using significant unobservable inputs (including management’s assumptions in determining the fair value of investments).
The inputs or methodologies used for valuing securities are not an indication of the risks associated with investing in those securities. The following is a summary of the Fund’s fair value measurements as of the end of the reporting period:
         
 
Level 1
Level 2
Level 3
Total
Long-Term Investments:
        
Municipal Bonds
$ —
$334,521,350
$ —
$334,521,350
 
Income Tax Information
The following information is presented on an income tax basis. Differences between amounts for financial statement and federal income tax purposes are primarily due to timing differences in recognizing taxable market discount, timing differences in recognizing certain gains and losses on investment transactions and the treatment of investments in inverse floating rate securities reflected as financing transactions, if any. To the extent that differences arise that are permanent in nature, such amounts are reclassified within the capital accounts on the Statement of Assets and Liabilities presented in the annual report, based on their federal tax basis treatment; temporary differences do not require reclassification. Temporary and permanent differences do not impact the net asset value of the Fund.
As of May 31, 2016, the cost of investments was $299,154,473.
Gross unrealized appreciation and gross unrealized depreciation of investments as of May 31, 2016, were as follows:
   
Gross unrealized:
  
Appreciation
$39,054,959
Depreciation
(3,688,082)
Net unrealized appreciation (depreciation) of investments
$35,366,877
 
     
(1)
  
All percentages shown in the Portfolio of Investments are based on net assets applicable to common
   
shares unless otherwise noted.
(2)
  
Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption.
   
There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may
   
be subject to periodic principal paydowns.
(3)
  
Ratings: Using the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s 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)
  
The coupon for this security increased 0.25% effective January 1, 2016 and will increase an additional
   
0.25% effective May 11, 2016.
(5)
  
As of, or subsequent to, the end of the reporting period this security is non-income producing. Non-income
   
producing, in the case of a fixed-income security, generally denotes that the issuer has (1) defaulted on
   
the payment of principal or interest, (2) is under the protection of the Federal Bankruptcy Court or (3) the
   
Fund’s Adviser has concluded that the issue is not likely to meet its future interest payment obligations
   
and has ceased accruing additional income on the Fund’s records.
(6)
  
Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities,
   
which ensure the timely payment of principal and interest. Certain bonds backed by U.S. Government or
   
agency securities are regarded as having an implied rating equal to the rating of such securities.
(7)
  
Investment, or portion of investment, has been pledged to collateralize the net payment obligations for
   
investments in inverse floating rate transactions.
(8)
  
Variable Rate Demand Preferred Shares, at Liquidation Preference as a percentage of Total Investments is 29.3%.
(ETM)
  
Escrowed to maturity.
(IF)
  
Inverse floating rate investment.

 

 
Item 2. Controls and Procedures.

a.  
The registrant's principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the "1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of the controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rule 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934 (17 CFR 240.13a-15(b) or 240.15d-15(b)).
 
b.  
There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the registrant's last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting.
 
Item 3. Exhibits.

File as exhibits as part of this Form a separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the 1940 Act (17 CFR 270.30a-2(a)), exactly as set forth below: See EX-99 CERT attached hereto.

 
 
SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
(Registrant)  Nuveen California Dividend Advantage Municipal Fund 2 
 
By (Signature and Title) /s/ Kevin J. McCarthy                    
       Kevin J. McCarthy
     Vice President and Secretary
                                         
Date:         July 29, 2016        
 
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
 
By (Signature and Title) /s/ Gifford R. Zimmerman            
       Gifford R. Zimmerman
     Chief Administrative Officer (principal executive officer)
                        
Date:         July 29, 2016        
 
By (Signature and Title) /s/ Stephen D. Foy                         
 
     Stephen D. Foy
     Vice President and Controller (principal financial officer)
                                                                                         
Date:         July 29, 2016