N-CSRS 1 nkx.htm NKX
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-21212
Nuveen Insured California Tax-Free Advantage Municipal Fund
(Exact name of registrant as specified in charter)
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
(Address of principal executive offices) (Zip code)
Kevin J. McCarthy
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
(Name and address of agent for service)
Registrant's telephone number, including area code: (312) 917-7700
Date of fiscal year end: February 28
Date of reporting period: August 31, 2011
Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. ss. 3507.

ITEM 1. REPORTS TO STOCKHOLDERS.

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Table of Contents

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

Chairman’s
Letter to Shareholders
Dear Shareholders,
The global economy continues to be weighed down by an unusual combination of pressures facing the larger developed economies. Japanese leaders continue to work through the economic aftereffects of the March 2011 earthquake and tsunami. Political leaders in Europe and the U.S. have resolved some of the near term fiscal problems, but the financial markets are not convinced that these leaders are able to address more complex longer term fiscal issues. Despite improved earnings and capital increases, the largest banks in these countries continue to be vulnerable to deteriorating mortgage portfolios and sovereign credit exposure, adding another source of uncertainty to the global financial system.
In the U.S., recent economic statistics indicate that the economic recovery may be losing momentum. Consumption, which represents about 70% of the gross domestic product, faces an array of challenges from seemingly intractable declines in housing values, increased energy costs and limited growth in the job market. The failure of Congress and the administration to agree on the debt ceiling increase on a timely basis and the deep divisions between the political parties over fashioning a balanced program to address growing fiscal imbalances that led to the recent S&P ratings downgrade add considerable uncertainty to the domestic economic picture.
On a more positive note, corporate earnings continue to hold up well and the municipal bond market is recovering from recent weakness as states and municipalities implement various programs to reduce their budgetary deficits. In addition, the Federal Reserve System has made it clear that it stands ready to take additional steps should the economic recovery falter. However, there are concerns that the Fed is approaching the limits of its resources to intervene in the economy.
These perplexing times highlight the importance of professional investment management. Your Nuveen investment team is working hard to develop an appropriate response to increased risk, and they continue to seek out opportunities created by stressful markets using proven investment disciplines designed to help your Fund achieve its investment objectives. On your behalf, we monitor their activities to assure that they maintain their investment disciplines.
As always, I encourage you to contact your financial consultant if you have any questions about your investment in a Nuveen Fund. On behalf of the other members of your Fund Board, we look forward to continuing to earn your trust in the months and years ahead.
Sincerely,
Robert P. Bremner
Chairman of the Board
October 21, 2011

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Portfolio Manager’s Comments
Nuveen Insured California Premium Income Municipal Fund, Inc. (NPC)
Nuveen Insured California Premium Income Municipal Fund 2, Inc. (NCL)
Nuveen California Premium Income Municipal Fund (NCU)
Nuveen California Dividend Advantage Municipal Fund (NAC)
Nuveen California Dividend Advantage Municipal Fund 2 (NVX)
Nuveen California Dividend Advantage Municipal Fund 3 (NZH)
Nuveen Insured California Dividend Advantage Municipal Fund (NKL)
Nuveen Insured California Tax-Free Advantage Municipal Fund (NKX)
Portfolio manager Scott Romans examines key investment strategies and the six-month performance of these Funds. Scott, who joined Nuveen in 2000, has managed NCU, NAC, NVX, NZH, NKL and NKX since 2003. He assumed portfolio management responsibility for NPC and NCL in 2005.
What key strategies were used to manage the California Funds during the six-month reporting period ended August 31, 2011?
During this reporting period, municipal bond prices generally rallied as yields declined across the municipal curve. The relative decline in yields was attributable in part to the continued depressed level of municipal bond issuance. Tax-exempt volume, which had been limited in 2010 by issuers’ extensive use of taxable Build America Bonds (BABs), continued to drift lower in 2011. Even though BABs were no longer an option for issuers (the BAB program expired at the end of 2010), some borrowers had accelerated issuance into 2010 in order to take advantage of the program’s favorable terms before its termination, fulfilling their capital program borrowing needs well into 2012. This reduced the need for many borrowers to come to market with new issues during this period. For the six months ended August 31, 2011, national municipal issuance was down 34% compared with the same period in 2010, while municipal issuance in California declined 37%. One indicator of the general lack of supply was the fact that, as of August 31, 2011, the state of California had not issued any tax-exempt bonds during 2011.
Despite the constrained issuance of tax-exempt municipal bonds and relatively lower yields, we continued to take a bottom-up approach to discovering undervalued sectors and individual credits with the potential to perform well over the long term. During this period, these California Funds found value in health care, where we were able to add to our holdings at attractive prices, and in new issues for charter schools. We also continued to actively add exposure to redevelopment agency (RDA) bonds, which fund programs to improve deteriorated, blighted and economically depressed areas in California. We remained very selective in our purchases in this area, evaluating bonds on a case by case basis and buying only those where our research indicated that we potentially would be compensated for taking on additional risk. In addition, in Funds where we sought to adjust duration, we purchased zero coupon bonds issued by local school districts at historically wide spreads. These bonds offered longer durations with very attractive yields relative to their credit quality. With both the RDA bonds and the local school district credits, we were able to discover attractive candidates for purchase in both the insured and uninsured segments of the market.
Certain statements in this report are forward-looking statements. Discussions of specific investments are for illustration only and are not intended as recommendations of individual investments. The forward-looking statements and other views expressed herein are those of the portfolio manager as of the date of this report. Actual future results or occurrences may differ significantly from those anticipated in any forward-looking statements, and the views expressed herein are subject to change at any time, due to numerous market and other factors. The Funds disclaim any obligation to update publicly or revise any forward-looking statements or views expressed herein.
Ratings shown are the highest rating given by one of the following national rating agencies: Standard & Poor’s Group, Moody’s Investor Services, Inc. or Fitch, Inc. Credit ratings are subject to change. AAA, AA, A, and BBB are investment grade ratings; BB, B, CCC, CC, C and D are below-investment grade ratings. Bonds backed by U.S. Government or agency securities are given an implied rating equal to the rating of such securities. Holdings designated N/R are not rated by a national rating agency.

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For the most part, we focused on purchasing longer maturity bonds during this period in order to take advantage of more attractive yields at the longer end of the municipal bond yield curve. Cash for new purchases during this period was generated largely by the proceeds from bond calls and maturing bonds, which we worked to redeploy to keep the Funds fully invested.
As of August 31, 2011, all of these Funds continued to use inverse floating rate securities. We employ inverse floaters as a form of leverage for a variety of reasons, including duration management, income enhancement and total return enhancement. As part of our duration management strategies, NCL also used derivatives (forward interest rate swaps) to reduce price volatility risk to movement in U.S. interest rates relative to the Fund’s benchmarks. During this period, the derivatives functioned as intended, and by period end, we had removed the derivatives from NCL.
How did the Funds perform?
Individual results for these Nuveen California Funds, as well as relevant index and peer group information, are presented in the accompanying table.
Average Annual Total Returns on Common Share Net Asset Value*
For periods ended 8/31/11

|  | 6-Month |  | 1-Year |  | 5-Year |  | 10-Year
Uninsured Funds |  |  |  |  |  |  |  |  |  |  |  |
NCU |  |  | 11.96 | % |  |  | 2.91 | % |  |  | 4.73 | % |  |  | 5.67 | %
NAC |  |  | 12.66 | % |  |  | 1.57 | % |  |  | 4.08 | % |  |  | 5.53 | %
NVX |  |  | 10.65 | % |  |  | 2.27 | % |  |  | 4.67 | % |  |  | 5.57 | %
NZH |  |  | 10.65 | % |  |  | 1.48 | % |  |  | 3.17 | % |  |  | N/A
Standard & Poor’s (S&P) California Municipal Bond Index** |  |  | 7.33 | % |  |  | 2.68 | % |  |  | 4.39 | % |  |  | 4.81 | %
Standard & Poor’s (S&P) National Municipal Bond Index** |  |  | 6.56 | % |  |  | 2.62 | % |  |  | 4.60 | % |  |  | 4.93 | %
Lipper California Municipal Debt Classification Average** |  |  | 11.95 | % |  |  | 1.31 | % |  |  | 3.04 | % |  |  | 5.01 | %
Insured Funds |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
NPC |  |  | 13.18 | % |  |  | 3.25 | % |  |  | 4.94 | % |  |  | 5.34 | %
NCL |  |  | 12.71 | % |  |  | 2.02 | % |  |  | 4.71 | % |  |  | 5.27 | %
NKL |  |  | 11.44 | % |  |  | 2.78 | % |  |  | 4.89 | % |  |  | N/A
NKX |  |  | 12.05 | % |  |  | 1.42 | % |  |  | 4.19 | % |  |  | N/A
Standard & Poor’s (S&P) California Municipal Bond Index** |  |  | 7.33 | % |  |  | 2.68 | % |  |  | 4.39 | % |  |  | 4.81 | %
Standard & Poor’s (S&P) Insured National Municipal Bond Index** |  |  | 7.16 | % |  |  | 2.61 | % |  |  | 4.61 | % |  |  | 4.97 | %
Lipper Single-State Insured Municipal Debt Classification Average** |  |  | 9.77 | % |  |  | 2.20 | % |  |  | 4.88 | % |  |  | 5.46 | %

For the six months ended August 31, 2011, the cumulative returns on common share net asset value (NAV) for all four of the uninsured Funds—NCU, NAC, NVX and NZH—exceeded the returns on the Standard & Poor’s (S&P) California Municipal Bond Index as well as the Standard & Poor’s (S&P) National Municipal Bond Index. NCU and NCA also outperformed the average return for the Lipper California Municipal Debt Classification Average, while NVX and NZH underperformed this Lipper average. For the same period, all four of the insured Funds—NPC, NCL, NKL and NKX—exceeded the returns on the S&P California

| Past performance is not predictive of future results. Current performance may be higher or lower than the data shown. Returns do not reflect the deduction of taxes that shareholders may have to pay on Fund distributions or upon the sale of Fund shares.
| For additional information, see the individual Performance Overview for your Fund in this report.
* | 6-month returns are cumulative; all other returns are annualized.
** | Refer to the Glossary of Terms Used in this Report for definitions.

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

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held by a Fund generally are rising. Leverage made a positive contribution to the performance of these Funds over this reporting period.
RECENT DEVELOPMENTS REGARDING THE FUNDS’ REDEMPTION OF AUCTION RATE PREFERRED SHARES
Shortly after their respective inceptions, each of the Funds issued auction rate preferred shares (ARPS) to create structural leverage. As noted in past shareholder reports, the ARPS issued by many closed-end funds, including these Funds, have been hampered by a lack of liquidity since February 2008. Since that time, more ARPS have been submitted for sale in each of their regularly scheduled auctions than there have been offers to buy. In fact, offers to buy have been almost completely nonexistent since late February 2008. This means that these auctions have “failed to clear,” and that many, or all, of the ARPS shareholders who wanted to sell their shares in these auctions were unable to do so. This lack of liquidity in ARPS did not lower the credit quality of these shares, and ARPS shareholders unable to sell their shares continued to receive distributions at the “maximum rate” applicable to failed auctions, as calculated in accordance with the pre-established terms of the ARPS. In the recent market, with short term rates at multi-generational lows, those maximum rates also have been low.
One continuing implication for common shareholders from the auction failures is that each Fund’s cost of leverage likely has been incrementally higher at times than it otherwise might have been had the auctions continued to be successful. As a result, each Fund’s common share earnings likely have been incrementally lower at times than they otherwise might have been.
As noted in past shareholder reports, the Nuveen funds’ Board of Directors/Trustees authorized several methods that can be used separately or in combination to refinance a portion of the Nuveen funds’ outstanding ARPS. Some funds have utilized tender option bonds (TOBs), also known as inverse floating rate securities, for leverage purposes. The amount of TOBs that a fund may use varies according to the composition of each fund’s portfolio. Some funds have a greater ability to use TOBs than others. Some funds have issued Variable Rate Demand Preferred (VRDP) Shares or Variable MuniFund Term Preferred (VMTP) Shares, which are floating rate forms of preferred stock with a mandatory term redemption. Some funds have issued MuniFund Term Preferred (MTP) Shares, a fixed rate form of preferred stock with a mandatory redemption period of three to five years.
During 2010 and 2011, certain Nuveen leveraged closed-end funds (including NAC, NZH and NKX) received a demand letter from a law firm on behalf of purported holders of common shares of each such fund, alleging that Nuveen and the funds’ officers and Board of Directors/Trustees breached their fiduciary duties related to the redemption at par of the funds’ ARPS. In response, the Board established an ad hoc Demand Committee consisting of certain of its disinterested and independent Board members to investigate the claims. The Demand Committee retained independent counsel to assist it in conducting an extensive investigation. Based upon its investigation, the Demand Committee found that it was not in the best interests of each fund or its shareholders to take the actions

8 |  | Nuveen Investments

suggested in the demand letters, and recommended that the full Board reject the demands made in the demand letters. After reviewing the findings and recommendation of the Demand Committee, the full Board of each fund unanimously adopted the Demand Committee’s recommendation.
Subsequently, 33 of the funds that received demand letters (including NKX) were named in a consolidated complaint as nominal defendants in a putative shareholder derivative action captioned Martin Safier, et al. v. Nuveen Asset Management, et al. that was filed in the Circuit Court of Cook County, Illinois, Chancery Division (the “Cook County Chancery Court”) on February 18, 2011 (the “Complaint”). The Complaint, filed on behalf of purported holders of each fund’s common shares, also name Nuveen Fund Advisors, Inc. as a defendant, together with current and former Officers and interested Director/Trustees of each of the funds (together with the nominal defendants, collectively, the “Defendants”). The Complaint contains the same basic allegations contained in the demand letters. The suits seek a declaration that the Defendants have breached their fiduciary duties, an order directing the Defendants not to redeem any ARPS at their liquidation value using fund assets, indeterminate monetary damages in favor of the funds and an award of plaintiffs’ costs and disbursements in pursuing the action. The Court has heard arguments on the funds’ motion to dismiss the suit, and has taken the matter under advisement. Nuveen Fund Advisors, Inc. believes that the Complaint is without merit, and is defending vigorously against these charges.
As of August 31, 2011, each of the Funds has redeemed all of their outstanding ARPS at liquidation value.
As of August 31, 2011, the Funds have issued and outstanding MTP Shares and VRDP Shares as shown in the accompanying tables.
MTP Shares

Fund |  | Series |  | MTP Shares Issued at Liquidation Value |  | Annual Interest Rate | NYSE Ticker |
NCU |  |  | 2015 |  | $ | 35,250,000 |  |  | 2.00 | % |  | NCU PrC |
NVX |  |  | 2014 |  | $ | 42,846,300 |  |  | 2.35 | % |  | NVX PrA |
NVX |  |  | 2015 |  | $ | 55,000,000 |  |  | 2.05 | % |  | NVX PrC |
NZH |  |  | 2014 |  | $ | 27,000,000 |  |  | 2.35 | % |  | NZH PrA |
NZH |  |  | 2014-1 |  | $ | 46,294,500 |  |  | 2.25 | % |  | NZH PrB |
NZH |  |  | 2015 |  | $ | 86,250,000 |  |  | 2.95 | % |  | NZH PrC |

VRDP Shares

Fund |  | VRDP Shares Issued at Liquidation Value
NPC |  | $ | 42,700,000
NCL |  | $ | 74,000,000
NAC |  | $ | 136,200,000
NKL |  | $ | 104,400,000
NKX |  | $ | 35,500,000

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(Refer to Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies and Footnote 4 – Fund Shares for further details on MTP and VRDP Shares.)
As of October 5, 2011, after the close of this reporting period, all 84 of the Nuveen closed-end municipal funds that had issued ARPS, approximately $11.0 billion, have redeemed at liquidation value all of these shares.
For up-to-date information, please visit the Nuveen CEF Auction Rate Preferred Resource Center at: http://www.nuveen.com/arps.
Regulatory Matters
During May 2011, Nuveen Securities, LLC, known as Nuveen Investments, LLC, prior to April 30, 2011, entered into a settlement with the Financial Industry Regulatory Authority (FINRA) with respect to certain allegations regarding Nuveen-sponsored closed-end fund ARPS marketing brochures. As part of this settlement, Nuveen Securities, LLC neither admitted to nor denied FINRA’s allegations. Nuveen Securities, LLC is the broker-dealer subsidiary of Nuveen Investments.
The settlement with FINRA concludes an investigation that followed the widespread failure of auctions for ARPS and other auction rate securities, which generally began in mid-February 2008. In the settlement, FINRA alleged that certain marketing materials provided by Nuveen Securities, LLC were false and misleading. Nuveen Securities, LLC agreed to a censure and the payment of a $3 million fine.
RISK CONSIDERATIONS
Fund shares are not guaranteed or endorsed by any bank or other insured depository institution, and are not federally insured by the Federal Deposit Insurance Corporation. Past performance is no guarantee of future results. Fund common shares are subject to a variety of risks, including:
Investment Risk. The possible loss of the entire principal amount that you invest.
Price Risk. Shares of closed-end investment companies like these Funds frequently trade at a discount to their NAV. Your common shares at any point in time may be worth less than your original investment, even after taking into account the reinvestment of Fund dividends and distributions.
Leverage Risk. Each Fund’s use of leverage creates the possibility of higher volatility for the Fund’s per share NAV, market price, distributions and returns. There is no assurance that a Fund’s leveraging strategy will be successful.

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Tax Risk. The tax treatment of Fund distributions may be affected by new IRS interpretations of the Internal Revenue Code and future changes in tax laws and regulations.
Issuer Credit Risk. This is the risk that a security in a Fund’s portfolio will fail to make dividend or interest payments when due.
Interest Rate Risk. Fixed-income securities such as bonds, preferred, convertible and other debt securities will decline in value if market interest rates rise.
Reinvestment Risk. If market interest rates decline, income earned from a Fund’s portfolio may be reinvested at rates below that of the original bond that generated the income.
Call Risk or Prepayment Risk. Issuers may exercise their option to prepay principal earlier than scheduled, forcing a Fund to reinvest in lower-yielding securities.

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Common Share Dividend and
Share Price Information
The monthly dividends of all eight Funds in this report remained stable throughout the six-month reporting period ended August 31, 2011.
All of the Funds in this report seek to pay stable dividends at rates that reflect each Fund’s past results and projected future performance. During certain periods, each Fund may pay dividends at a rate that may be more or less than the amount of net investment income actually earned by the Fund during the period. If a Fund has cumulatively earned more than it has paid in dividends, it holds the excess in reserve as undistributed net investment income (UNII) as part of the Fund’s NAV. Conversely, if a Fund has cumulatively paid dividends in excess of its earnings, the excess constitutes negative UNII that is likewise reflected in the Fund’s NAV. Each Fund will, over time, pay all of its net investment income as dividends to shareholders. As of August 31, 2011, all of the Funds in this report had positive UNII balances, based upon our best estimate, for tax purposes and positive UNII balances for financial statement purposes.
COMMON SHARE REPURCHASES AND SHARE PRICE INFORMATION
As of August 31, 2011, and the since inception of the Funds’ repurchase program, the following Funds have cumulatively repurchased and retired common shares as shown in the accompanying table. Since the inception of the Fund’s repurchase program, NAC and NKX have not redeemed any of their outstanding common shares.

Fund |  | Common Shares Repurchased and Retired |  | % of Outstanding Common Shares
NPC |  |  | 17,700 |  |  | 0.3 | %
NCL |  |  | 55,700 |  |  | 0.4 | %
NCU |  |  | 44,500 |  |  | 0.8 | %
NAC |  |  | — |  |  | — |
NVX |  |  | 50,700 |  |  | 0.3 | %
NZH |  |  | 12,900 |  |  | 0.1 | %
NKL |  |  | 32,700 |  |  | 0.2 | %
NKX |  |  | — |  |  | — |

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During the six-month reporting period, the Funds did not repurchase any of their outstanding common shares.
As of August 31, 2011, the Funds’ common share prices were trading at (-) discounts to their common share NAVs as shown in the accompanying table.

|  |  | 8/31/11 (-)Discount |  |  | Six-Month Average (-)Discount
NPC |  |  | (-)7.35% |  |  | (-)3.68%
NCL |  |  | (-)4.35% |  |  | (-)5.00%
NCU |  |  | (-)7.90% |  |  | (-)6.15%
NAC |  |  | (-)2.90% |  |  | (-)4.48%
NVX |  |  | (-)3.54% |  |  | (-)3.65%
NZH |  |  | (-)3.55% |  |  | (-)3.05%
NKL |  |  | (-)1.56% |  |  | (-)3.61%
NKX |  |  | (-)7.60% |  |  | (-)8.11%

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NPC |  | Nuveen Insured California
Performance |  | Premium Income
OVERVIEW |  | Municipal Fund, Inc.
|  | as of August 31, 2011

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

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

Portfolio Composition 4 (as a % of total investments) |  |  |  |
Tax Obligation/Limited |  |  | 33.8 | %
Tax Obligation/General |  |  | 19.8 | %
U.S. Guaranteed |  |  | 18.5 | %
Water and Sewer |  |  | 15.2 | %
Health Care |  |  | 7.1 | %
Other |  |  | 5.6 | %
Insurers 4 (as a % of total Insured investments) |  |  |  |
NPFG5 |  |  | 30.4 | %
AMBAC |  |  | 24.8 | %
FGIC |  |  | 19.1 | %
AGM |  |  | 16.5 | %
AGC |  |  | 7.2 | %
SYNCORA GTY |  |  | 2.0 | %

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

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NCL |  | Nuveen Insured California
Performance |  | Premium Income
OVERVIEW |  | Municipal Fund 2, Inc.
|  | August 31, 2011

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

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

Portfolio Composition 4 (as a % of total investments) |  |  |  |
Tax Obligation/Limited |  |  | 41.8 | %
Tax Obligation/General |  |  | 22.0 | %
Water and Sewer |  |  | 14.4 | %
Utilities |  |  | 5.6 | %
Transportation |  |  | 4.1 | %
Other |  |  | 12.1 | %
Insurers 4 (as a % of total Insured investments) |  |  |  |
AMBAC |  |  | 29.6 | %
AGM |  |  | 21.4 | %
FGIC |  |  | 19.0 | %
NPFG5 |  |  | 17.5 | %
AGC |  |  | 11.9 | %
SYNCORA GTY |  |  | 0.6 | %

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

Nuveen Investments |  | 15

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

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

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

Portfolio Composition 3 (as a % of total investments) |  |  |  |
Tax Obligation/Limited |  |  | 30.2 | %
Tax Obligation/General |  |  | 18.5 | %
Health Care |  |  | 18.0 | %
U.S. Guaranteed |  |  | 8.9 | %
Education and Civic Organizations |  |  | 5.2 | %
Utilities |  |  | 5.1 | %
Other |  |  | 14.1 | %

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

16 |  | Nuveen Investments

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

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

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

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

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

Nuveen Investments |  | 17

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

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

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

Portfolio Composition 3 (as a % of total investments) |  |  |  |
Health Care |  |  | 18.2 | %
Tax Obligation/General |  |  | 15.6 | %
U.S. Guaranteed |  |  | 13.8 | %
Tax Obligation/Limited |  |  | 11.6 | %
Transportation |  |  | 8.0 | %
Water and Sewer |  |  | 7.5 | %
Education and Civic Organizations |  |  | 7.0 | %
Utilities |  |  | 5.9 | %
Other |  |  | 12.4 | %

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

18 |  | Nuveen Investments

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

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

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

Portfolio Composition 3 (as a % of total investments) |  |  |  |
Tax Obligation/Limited |  |  | 29.2 | %
Health Care |  |  | 21.9 | %
U.S. Guaranteed |  |  | 10.8 | %
Tax Obligation/General |  |  | 7.6 | %
Consumer Staples |  |  | 5.3 | %
Water and Sewer |  |  | 5.1 | %
Transportation |  |  | 5.0 | %
Education and Civic Organizations |  |  | 4.4 | %
Other |  |  | 10.7 | %

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

Nuveen Investments |  | 19

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

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

Average Annual Total Return (Inception 3/25/02) |  |  |  |  |  |
|  | On Share Price |  | On NAV
6-Month (Cumulative) |  |  | 15.54 | % |  |  | 11.44 | %
1-Year |  |  | 2.83 | % |  |  | 2.78 | %
5-Year |  |  | 4.66 | % |  |  | 4.89 | %
Since Inception |  |  | 6.01 | % |  |  | 6.39 | %

Portfolio Composition 4 (as a % of total investments) |  |  |  |
Tax Obligation/Limited |  |  | 31.5 | %
Tax Obligation/General |  |  | 24.7 | %
Water and Sewer |  |  | 12.0 | %
Utilities |  |  | 9.9 | %
Health Care |  |  | 5.3 | %
U.S. Guaranteed |  |  | 4.6 | %
Other |  |  | 12.0 | %

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

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

20 |  | Nuveen Investments

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

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

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

Portfolio Composition 4 (as a % of total investments) |  |  |  |
Tax Obligation/Limited |  |  | 31.8 | %
Health Care |  |  | 17.5 | %
U.S. Guaranteed |  |  | 17.0 | %
Water and Sewer |  |  | 8.2 | %
Tax Obligation/General |  |  | 8.2 | %
Transportation |  |  | 5.7 | %
Long-Term Care |  |  | 5.2 | %
Other |  |  | 6.4 | %
Insurers4 (as a % of total Insured investments) |  |  |  |
AMBAC |  |  | 44.4 | %
NPFG5 |  |  | 19.5 | %
AGM |  |  | 12.0 | %
AGC |  |  | 8.9 | %
BHAC |  |  | 5.6 | %
FGIC |  |  | 5.3 | %
SYNCORA GTY |  |  | 4.3 | %

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

Nuveen Investments |  | 21

|  | Nuveen Insured California Premium Income Municipal Fund, Inc.
NPC |  | Portfolio of Investments
|  | August 31, 2011 (Unaudited)

| Principal |  |  | Optional Call |  |  |  |  |
| Amount (000) |  | Description (1) | Provisions (2) | Ratings (3) |  |  | Value |
|  |  | Education and Civic Organizations – 3.5% (2.5% of Total Investments) |  |  |  |  |  |
$ | 750 |  | California Educational Facilities Authority, Student Loan Revenue Bonds, Cal Loan Program, Series 2001A, 5.400%, 3/01/21 – NPFG Insured (Alternative Minimum Tax) | 3/12 at 100.00 | Baa1 |  | $ | 750,488 |
| 1,500 |  | California State University, Systemwide Revenue Bonds, Series 2005A, 5.000%, 11/01/25 – AMBAC Insured | 5/15 at 100.00 | Aa2 |  |  | 1,570,140 |
| 1,000 |  | California State University, Systemwide Revenue Bonds, Series 2005C, 5.000%, 11/01/27 – NPFG Insured | 11/15 at 100.00 | Aa2 |  |  | 1,044,030 |
| 3,250 |  | Total Education and Civic Organizations |  |  |  |  | 3,364,658 |
|  |  | Health Care – 9.9% (7.1% of Total Investments) |  |  |  |  |  |
| 3,000 |  | California Health Facilities Financing Authority, Insured Revenue Bonds, Sutter Health, Series 1998A, 5.375%, 8/15/30 – NPFG Insured | 2/12 at 100.00 | AA– |  |  | 3,001,320 |
| 1,500 |  | California Statewide Community Development Authority, Certificates of Participation, Sutter Health Obligated Group, Series 1999, 5.500%, 8/15/19 – AGM Insured | 2/12 at 100.00 | AA+ |  |  | 1,505,400 |
| 2,800 |  | California Statewide Community Development Authority, Revenue Bonds, St. Joseph Health System, Series 2007A, 5.750%, 7/01/47 – FGIC Insured | 7/18 at 100.00 | AA– |  |  | 2,822,708 |
| 724 |  | California Statewide Communities Development Authority, Revenue Bonds, Saint Joseph Health System, Trust 2554, 18.324%, 7/01/47 – AGM Insured (IF) | 7/18 at 100.00 | AA+ |  |  | 739,957 |
| 1,480 |  | Santa Clara County Financing Authority, California, Insured Revenue Bonds, El Camino Hospital, Series 2007A, 5.750%, 2/01/41 – AMBAC Insured | 8/17 at 100.00 | A+ |  |  | 1,506,610 |
| 9,504 |  | Total Health Care |  |  |  |  | 9,575,995 |
|  |  | Housing/Single Family – 0.1% (0.1% of Total Investments) |  |  |  |  |  |
| 110 |  | California Housing Finance Agency, Home Mortgage Revenue Bonds, Series 2006H, 5.750%, 8/01/30 – FGIC Insured (Alternative Minimum Tax) | 2/16 at 100.00 | Baa1 |  |  | 110,070 |
|  |  | Long-Term Care – 1.4% (1.0% of Total Investments) |  |  |  |  |  |
| 1,250 |  | California Health Facilities Financing Authority, Insured Revenue Bonds, Community Program for Persons with Developmental Disabilities, Series 2011A, 6.250%, 2/01/26 | No Opt. Call | A– |  |  | 1,345,713 |
|  |  | Tax Obligation/General – 27.7% (19.8% of Total Investments) |  |  |  |  |  |
|  |  | Bonita Unified School District, San Diego County, California, General Obligation Bonds, Series 2004A: |  |  |  |  |  |
| 1,890 |  | 5.250%, 8/01/23 – NPFG Insured | 8/14 at 100.00 | AA– |  |  | 2,066,243 |
| 1,250 |  | 5.250%, 8/01/25 – NPFG Insured | 8/14 at 100.00 | AA– |  |  | 1,365,225 |
|  |  | El Segundo Unified School District, Los Angeles County, California, General Obligation Bonds, Series 2004: |  |  |  |  |  |
| 2,580 |  | 5.250%, 9/01/21 – FGIC Insured | 9/14 at 100.00 | AA– |  |  | 2,834,852 |
| 1,775 |  | 5.250%, 9/01/22 – FGIC Insured | 9/14 at 100.00 | AA– |  |  | 1,945,152 |
| 1,130 |  | Fontana Unified School District, San Bernardino County, California, General Obligation Bonds, Trust 2668, 9.359%, 2/01/16 – AGM Insured (IF) | No Opt. Call | AA+ |  |  | 1,277,375 |
| 1,225 |  | Fresno Unified School District, Fresno County, California, General Obligation Refunding Bonds, Series 1998A, 6.550%, 8/01/20 – NPFG Insured | 2/13 at 103.00 | Aa3 |  |  | 1,346,251 |
| 5,000 |  | Grossmont Healthcare District, California, General Obligation Bonds, Series 2007A, 5.000%, 7/15/37 – AMBAC Insured | 7/17 at 100.00 | Aa2 |  |  | 5,069,500 |
| 1,180 |  | Jurupa Unified School District, Riverside County, California, General Obligation Bonds, Series 2004, 5.000%, 8/01/21 – FGIC Insured | 8/13 at 100.00 | A+ |  |  | 1,217,843 |
| 3,000 |  | Pomona Unified School District, Los Angeles County, California, General Obligation Refunding Bonds, Series 1997A, 6.500%, 8/01/19 – NPFG Insured | 2/12 at 103.00 | A |  |  | 3,151,140 |
| 160 |  | Roseville Joint Union High School District, Placer County, California, General Obligation Bonds, Series 2006B, 5.000%, 8/01/27 – FGIC Insured | 8/15 at 100.00 | AA– |  |  | 165,654 |

22 |  | Nuveen Investments

| Principal |  |  | Optional Call |  |  |  |  |
| Amount (000) |  | Description (1) | Provisions (2) | Ratings (3) |  |  | Value |
|  |  | Tax Obligation/General (continued) |  |  |  |  |  |
$ | 3,000 |  | Sacramento City Unified School District, Sacramento County, California, General Obligation Bonds, Series 2005, 5.000%, 7/01/27 – NPFG Insured | 7/15 at 100.00 | Aa3 |  | $ | 3,103,860 |
| 3,000 |  | San Jacinto Unified School District, Riverside County, California, General Obligation Bonds, Series 2007, 5.250%, 8/01/32 – AGM Insured | No Opt. Call | AA+ |  |  | 3,114,840 |
| 25,190 |  | Total Tax Obligation/General |  |  |  |  | 26,657,935 |
|  |  | Tax Obligation/Limited – 47.3% (33.8% of Total Investments) |  |  |  |  |  |
| 1,000 |  | Brea and Olinda Unified School District, Orange County, California, Certificates of Participation Refunding, Series 2002A, 5.125%, 8/01/26 – AGM Insured | 8/12 at 100.00 | AA+ |  |  | 1,012,540 |
|  |  | California Infrastructure Economic Development Bank, Revenue Bonds, North County Center for Self-Sufficiency Corporation, Series 2004: |  |  |  |  |  |
| 1,215 |  | 5.000%, 12/01/19 – AMBAC Insured | 12/13 at 100.00 | AA |  |  | 1,291,946 |
| 1,615 |  | 5.000%, 12/01/21 – AMBAC Insured | 12/13 at 100.00 | AA |  |  | 1,697,381 |
| 195 |  | Capistrano Unified School District, Orange County, California, Special Tax Bonds, Community Facilities District, Series 2005, 5.000%, 9/01/24 – FGIC Insured | 9/15 at 100.00 | BBB |  |  | 192,980 |
| 595 |  | Chino Redevelopment Agency, California, Merged Chino Redevelopment Project Area Tax Allocation Bonds, Series 2006, 5.000%, 9/01/38 – AMBAC Insured | 9/16 at 101.00 | A– |  |  | 515,222 |
| 3,190 |  | Chula Vista Public Financing Authority, California, Pooled Community Facility District Assessment Revenue Bonds, Series 2005A, 4.500%, 9/01/27 – NPFG Insured | 9/15 at 100.00 | Baa1 |  |  | 2,743,496 |
| 1,900 |  | Corona-Norco Unified School District, Riverside County, California, Special Tax Bonds, Community Facilities District 98-1, Series 2002, 5.100%, 9/01/25 – AMBAC Insured | 9/12 at 100.00 | N/R |  |  | 1,842,696 |
| 5,000 |  | El Monte, California, Senior Lien Certificates of Participation, Department of Public Services Facility Phase II, Series 2001, 5.250%, 1/01/34 – AMBAC Insured | 1/12 at 100.00 | A2 |  |  | 4,705,350 |
| 3,180 |  | Golden State Tobacco Securitization Corporation, California, Enhanced Tobacco Settlement Asset-Backed Revenue Bonds, Tender Option Bonds Trust 4686, 8.953%, 6/01/45 – AGC Insured (IF) (4) | 6/15 at 100.00 | AA+ |  |  | 2,684,810 |
| 700 |  | Hesperia Public Financing Authority, California, Redevelopment and Housing Projects Tax Allocation Bonds, Series 2007A, 5.000%, 9/01/37 – SYNCORA GTY Insured | 9/17 at 100.00 | Ba1 |  |  | 463,351 |
| 435 |  | Indian Wells Redevelopment Agency, California, Tax Allocation Bonds, Consolidated Whitewater Project Area, Series 2003A, 5.000%, 9/01/20 – AMBAC Insured | 9/13 at 100.00 | A |  |  | 439,085 |
| 345 |  | Los Angeles Community Redevelopment Agency, California, Lease Revenue Bonds, Manchester Social Services Project, Series 2005, 5.000%, 9/01/37 – AMBAC Insured | 9/15 at 100.00 | A1 |  |  | 311,166 |
| 895 |  | Los Angeles Community Redevelopment Agency, California, Tax Allocation Bonds, Bunker Hill Project, Series 2004A, 5.000%, 12/01/20 – AGM Insured | 12/14 at 100.00 | AA+ |  |  | 977,868 |
| 1,500 |  | Los Angeles, California, Municipal Improvement Corporation, Lease Revenue Bonds, Police Headquarters, Series 2006A, 4.750%, 1/01/31 – FGIC Insured | 1/17 at 100.00 | A+ |  |  | 1,435,845 |
| 3,150 |  | Moreno Valley Community Redevelopment Agency, California, Tax Allocation Bonds, Series 2007A, 5.000%, 8/01/38 – AMBAC Insured | 8/17 at 100.00 | A– |  |  | 2,727,995 |
| 7,000 |  | Rancho Cucamonga Redevelopment Agency, California, Housing Set-Aside Tax Allocation Bonds, Series 2007A, 5.000%, 9/01/34 – NPFG Insured | 9/17 at 100.00 | A+ |  |  | 6,085,730 |
| 165 |  | Rialto Redevelopment Agency, California, Tax Allocation Bonds, Merged Project Area, Series 2005A, 5.000%, 9/01/35 – SYNCORA GTY Insured | 9/15 at 100.00 | A– |  |  | 144,725 |
| 205 |  | Roseville, California, Certificates of Participation, Public Facilities, Series 2003A, 5.000%, 8/01/25 – AMBAC Insured | 8/13 at 100.00 | AA– |  |  | 206,816 |
| 5,150 |  | San Jacinto Unified School District, Riverside County, California, Certificates of Participation, Series 2010, 5.375%, 9/01/40 – AGC Insured | 9/20 at 100.00 | AA+ |  |  | 5,170,034 |
| 1,500 |  | San Jose Redevelopment Agency, California, Tax Allocation Bonds, Merged Project Area, Series 2005A, 5.000%, 8/01/28 – NPFG Insured | 8/15 at 100.00 | BBB+ |  |  | 1,287,600 |
| 3,565 |  | Sweetwater Union High School District Public Financing Authority, California, Special Tax Revenue Bonds, Series 2005A, 5.000%, 9/01/25 – AGM Insured | 9/15 at 100.00 | AA+ |  |  | 3,640,043 |

Nuveen Investments |  | 23

|  | Nuveen Insured California Premium Income Municipal Fund, Inc. (continued)
NPC |  | Portfolio of Investments
|  | August 31, 2011 (Unaudited)

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

24 |  | Nuveen Investments

| Principal |  |  | Optional Call |  |  |  |  |
| Amount (000) |  | Description (1) | Provisions (2) | Ratings (3) |  |  | Value |
|  |  | Water and Sewer (continued) |  |  |  |  |  |
$ | 1,500 |  | Placerville Public Financing Authority, California, Wastewater System Refinancing and Improvement Project Revenue Bonds, Series 2006, 5.000%, 9/01/34 – SYNCORA GTY Insured | 9/16 at 100.00 | N/R |  | $ | 1,274,460 |
| 1,345 |  | West Basin Municipal Water District, California, Revenue Certificates of Participation, Series 2003A, 5.000%, 8/01/20 – NPFG Insured | 8/13 at 100.00 | Aa2 |  |  | 1,426,991 |
| 20,215 |  | Total Water and Sewer |  |  |  |  | 20,576,308 |
$ | 128,174 |  | Total Investments (cost $129,969,082) – 140.0% |  |  |  |  | 134,907,914 |
|  |  | Variable Rate Demand Preferred Shares, at Liquidation Value – (44.3)% (6) |  |  |  |  | (42,700,000 | )
|  |  | Other Assets Less Liabilities – 4.3% |  |  |  |  | 4,165,829 |
|  |  | Net Assets Applicable to Common Shares – 100% |  |  |  | $ | 96,373,743 |

|  | The Fund intends to invest at least 80% of its managed assets in municipal securities that are covered by insurance guaranteeing the timely payment of principal and interest. See Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies, Insurance for more information.
(1) |  | All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted.
(2) |  | Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns.
(3) |  | Ratings: Using the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investor Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies.
(4) |  | Investment, or portion of investment, has been pledged to collaterize the net payment obligations for investments in inverse floating rate transactions.
(5) |  | Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities, which ensure the timely payment of principal and interest.
(6) |  | Variable Rate Demand Preferred Shares, at Liquidation Value as a percentage of Total Investments is 31.7%.
N/R |  | Not rated.
(ETM) |  | Escrowed to maturity.
(IF) |  | Inverse floating rate investment.

See accompanying notes to financial statements.

Nuveen Investments |  | 25

|  | Nuveen Insured California Premium Income Municipal Fund 2, Inc.
NCL |  | Portfolio of Investments
|  | August 31, 2011 (Unaudited)

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

26 |  | Nuveen Investments

| Principal |  |  | Optional Call |  |  |  |  |
| Amount (000) |  | Description (1) | Provisions (2) | Ratings (3) |  |  | Value |
|  |  | Tax Obligation/General (continued) |  |  |  |  |  |
$ | 2,210 |  | Fontana Unified School District, San Bernardino County, California, General Obligation Bonds, Trust 2668, 9.359%, 2/01/16 – AGM Insured (IF) | No Opt. Call | AA+ |  | $ | 2,498,228 |
| 1,255 |  | Los Angeles Community College District, Los Angeles County, California, General Obligation Bonds, Series 2005A, 5.000%, 8/01/24 – AGM Insured | 8/15 at 100.00 | AA+ |  |  | 1,340,654 |
| 4,000 |  | Los Angeles Unified School District, Los Angeles County, California, General Obligation Bonds, Series 2007A, 4.500%, 7/01/24 – AGM Insured | 7/17 at 100.00 | AA+ |  |  | 4,153,560 |
|  |  | Los Rios Community College District, Sacramento, El Dorado and Yolo Counties, California, General Obligation Bonds, Series 2002C: |  |  |  |  |  |
| 2,110 |  | 5.000%, 8/01/21 – AGM Insured (UB) | 8/14 at 102.00 | AA+ |  |  | 2,317,603 |
| 3,250 |  | 5.000%, 8/01/22 – AGM Insured (UB) | 8/14 at 102.00 | AA+ |  |  | 3,624,173 |
| 3,395 |  | 5.000%, 8/01/23 – AGM Insured (UB) | 8/14 at 102.00 | AA+ |  |  | 3,785,866 |
| 1,270 |  | Merced City School District, Merced County, California, General Obligation Bonds, Series 2004, 5.000%, 8/01/22 – FGIC Insured | 8/13 at 100.00 | A |  |  | 1,306,005 |
| 305 |  | Roseville Joint Union High School District, Placer County, California, General Obligation Bonds, Series 2006B, 5.000%, 8/01/27 – FGIC Insured | 8/15 at 100.00 | AA– |  |  | 315,779 |
| 2,500 |  | Sacramento City Unified School District, Sacramento County, California, General Obligation Bonds, Series 2005, 5.000%, 7/01/27 – NPFG Insured | 7/15 at 100.00 | Aa3 |  |  | 2,586,550 |
| 1,125 |  | San Diego Unified School District, San Diego County, California, General Obligation Bonds, Election of 1998, Series 1999A, 0.000%, 7/01/21 – FGIC Insured | No Opt. Call | Aa1 |  |  | 718,988 |
| 2,000 |  | San Francisco Community College District, California, General Obligation Bonds, Series 2002A, 5.000%, 6/15/26 – FGIC Insured | 6/12 at 100.00 | Aa2 |  |  | 2,024,540 |
| 2,000 |  | San Jacinto Unified School District, Riverside County, California, General Obligation Bonds, Series 2007, 5.250%, 8/01/32 – AGM Insured | No Opt. Call | AA+ |  |  | 2,076,560 |
| 1,000 |  | San Ramon Valley Unified School District, Contra Costa County, California, General Obligation Bonds, Series 2004, 5.000%, 8/01/24 – AGM Insured | 8/14 at 100.00 | AA+ |  |  | 1,074,670 |
| 2,445 |  | Washington Unified School District, Yolo County, California, General Obligation Bonds, Series 2004A, 5.000%, 8/01/21 – FGIC Insured | 8/13 at 100.00 | A+ |  |  | 2,588,424 |
| 56,135 |  | Total Tax Obligation/General |  |  |  |  | 58,583,974 |
|  |  | Tax Obligation/Limited – 61.6% (41.8% of Total Investments) |  |  |  |  |  |
|  |  | Anaheim Public Finance Authority, California, Subordinate Lease Revenue Bonds, Public Improvement Project, Series 1997C: |  |  |  |  |  |
| 5,130 |  | 0.000%, 9/01/18 – AGM Insured | No Opt. Call | AA+ |  |  | 3,809,538 |
| 8,000 |  | 0.000%, 9/01/21 – AGM Insured | No Opt. Call | AA+ |  |  | 4,640,960 |
| 2,235 |  | Antioch Public Financing Authority, California, Lease Revenue Refunding Bonds, Municipal Facilities Project, Refunding Series 2002A, 5.500%, 1/01/32 – NPFG Insured | 1/11 at 100.00 | A |  |  | 2,234,888 |
|  |  | California Infrastructure Economic Development Bank, Revenue Bonds, North County Center for Self-Sufficiency Corporation, Series 2004: |  |  |  |  |  |
| 1,535 |  | 5.000%, 12/01/20 – AMBAC Insured | 12/13 at 100.00 | AA |  |  | 1,620,300 |
| 1,780 |  | 5.000%, 12/01/23 – AMBAC Insured | 12/13 at 100.00 | AA |  |  | 1,852,553 |
| 3,725 |  | California State Public Works Board, Lease Revenue Bonds, Department of Corrections & Rehabilitation, Series 2005J, 5.000%, 1/01/17 – AMBAC Insured | 1/16 at 100.00 | A2 |  |  | 4,135,011 |
| 4,000 |  | California State Public Works Board, Lease Revenue Bonds, Various Capital Projects, Series 2009G-1, 5.750%, 10/01/30 | 10/19 at 100.00 | A2 |  |  | 4,201,360 |
| 380 |  | Capistrano Unified School District, Orange County, California, Special Tax Bonds, Community Facilities District, Series 2005, 5.000%, 9/01/24 – FGIC Insured | 9/15 at 100.00 | BBB |  |  | 376,063 |
| 7,000 |  | Chula Vista Public Financing Authority, California, Pooled Community Facility District Assessment Revenue Bonds, Series 2005A, 4.500%, 9/01/27 – NPFG Insured | 9/15 at 100.00 | Baa1 |  |  | 6,020,210 |
| 1,430 |  | Cloverdale Community Development Agency, California, Tax Allocation Refunding Bonds, Cloverdale Redevelopment Project Series 2006, 5.000%, 8/01/36 – AMBAC Insured | No Opt. Call | A– |  |  | 1,252,909 |
| 5,225 |  | El Monte, California, Senior Lien Certificates of Participation, Department of Public Services Facility Phase II, Series 2001, 5.000%, 1/01/21 – AMBAC Insured | 1/12 at 100.00 | A2 |  |  | 5,229,494 |
| 8,280 |  | Fontana Public Financing Authority, California, Tax Allocation Revenue Bonds, North Fontana Redevelopment Project, Series 2005A, 5.000%, 10/01/32 – AMBAC Insured | 10/15 at 100.00 | A |  |  | 7,517,081 |

Nuveen Investments |  | 27

|  | Nuveen Insured California Premium Income Municipal Fund 2, Inc. (continued)
NCL |  | Portfolio of Investments
|  | August 31, 2011 (Unaudited)

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

28 |  | Nuveen Investments

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

Nuveen Investments |  | 29

|  | Nuveen Insured California Premium Income Municipal Fund 2, Inc. (continued)
NCL |  | Portfolio of Investments
|  | August 31, 2011 (Unaudited)

| Principal |  |  | Optional Call |  |  |  |  |
| Amount (000) |  | Description (1) | Provisions (2) | Ratings (3) |  |  | Value |
|  |  | Water and Sewer (continued) |  |  |  |  |  |
|  |  | Santa Clara Valley Water District, California, Certificates of Participation, Series 2004A: |  |  |  |  |  |
$ | 1,400 |  | 5.000%, 2/01/19 – FGIC Insured | 2/14 at 100.00 | AA+ |  | $ | 1,488,032 |
| 445 |  | 5.000%, 2/01/20 – FGIC Insured | 2/14 at 100.00 | AA+ |  |  | 470,116 |
| 465 |  | 5.000%, 2/01/21 – FGIC Insured | 2/14 at 100.00 | AA+ |  |  | 488,701 |
| 2,500 |  | West Basin Municipal Water District, California, Revenue Certificates of Participation, Series 2003A, 5.000%, 8/01/30 – NPFG Insured | 8/13 at 100.00 | Aa2 |  |  | 2,528,323 |
|  |  | Yorba Linda Water District, California, Certificates of Participation, Highland Reservoir Renovation, Series 2003: |  |  |  |  |  |
| 2,010 |  | 5.000%, 10/01/28 – FGIC Insured | 10/13 at 100.00 | AA+ |  |  | 2,119,443 |
| 2,530 |  | 5.000%, 10/01/33 – FGIC Insured | 10/13 at 100.00 | AA+ |  |  | 2,620,647 |
| 36,985 |  | Total Water and Sewer |  |  |  |  | 38,305,108 |
$ | 275,730 |  | Total Investments (cost $263,674,448) – 147.3% |  |  |  |  | 266,052,088 |
|  |  | Floating Rate Obligations – (9.9)% |  |  |  |  | (17,880,000 | )
|  |  | Variable Rate Demand Preferred Shares, at Liquidation Value – (41.0)% (6) |  |  |  |  | (74,000,000 | )
|  |  | Other Assets Less Liabilities – 3.6% |  |  |  |  | 6,437,549 |
|  |  | Net Assets Applicable to Common Shares – 100% |  |  |  | $ | 180,609,637 |

|  | The Fund intends to invest at least 80% of its managed assets in municipal securities that are covered by insurance guaranteeing the timely payment of principal and interest. See Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies, Insurance for more information.
(1) |  | All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted.
(2) |  | Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns.
(3) |  | Ratings: Using the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investor Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies.
(4) |  | Investment, or portion of investment, has been pledged to collaterize the net payment obligations for investments in inverse floating rate transactions.
(5) |  | Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities, which ensure the timely payment of principal and interest.
(6) |  | Variable Rate Demand Preferred Shares, at Liquidation Value as a percentage of Total Investments is 27.8%.
N/R |  | Not rated.
(ETM) |  | Escrowed to maturity.
(IF) |  | Inverse floating rate investment.
(UB) |  | Underlying bond of an inverse floating rate trust reflected as a financing transaction. See Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies, Inverse Floating Rate Securities for more information.

See accompanying notes to financial statements.

30 |  | Nuveen Investments

|  | Nuveen California Premium Income Municipal Fund
NCU |  | Portfolio of Investments
|  | August 31, 2011 (Unaudited)

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

Nuveen Investments |  | 31

|  | Nuveen California Premium Income Municipal Fund (continued)
NCU |  | Portfolio of Investments
|  | August 31, 2011 (Unaudited)

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

32 |  | Nuveen Investments

| Principal |  |  | Optional Call |  |  |  |  |
| Amount (000) |  | Description (1) | Provisions (2) | Ratings (3) |  |  | Value |
|  |  | Tax Obligation/Limited – 45.2% (30.2% of Total Investments) |  |  |  |  |  |
$ | 1,000 |  | Bell Community Redevelopment Agency, California, Tax Allocation Bonds, Bell Project Area, Series 2003, 5.625%, 10/01/33 – RAAI Insured | 10/13 at 100.00 | N/R |  | $ | 795,040 |
|  |  | California Infrastructure Economic Development Bank, Revenue Bonds, North County Center for Self-Sufficiency Corporation, Series 2004: |  |  |  |  |  |
| 1,695 |  | 5.000%, 12/01/22 – AMBAC Insured | 12/13 at 100.00 | AA |  |  | 1,772,377 |
| 1,865 |  | 5.000%, 12/01/24 – AMBAC Insured | 12/13 at 100.00 | AA |  |  | 1,933,483 |
| 5,920 |  | California State Public Works Board, Lease Revenue Bonds, Department of Veterans Affairs, Southern California Veterans Home – Chula Vista Facility, Series 1999A, 5.600%, 11/01/19 – AMBAC Insured | 11/11 at 100.00 | A2 |  |  | 5,953,507 |
| 1,000 |  | California State Public Works Board, Lease Revenue Bonds, Various Capital Projects, Series 2009G-1, 5.750%, 10/01/30 | 10/19 at 100.00 | A2 |  |  | 1,050,340 |
| 2,000 |  | California State Public Works Board, Lease Revenue Bonds, Various Capital Projects, Series 2009I-1, 6.375%, 11/01/34 | 11/19 at 100.00 | A2 |  |  | 2,174,680 |
| 535 |  | California, Economic Recovery Revenue Bonds, Series 2004A, 5.000%, 7/01/15 | 7/14 at 100.00 | Aa3 |  |  | 597,258 |
| 165 |  | Capistrano Unified School District, Orange County, California, Special Tax Bonds, Community Facilities District, Series 2005, 5.000%, 9/01/24 – FGIC Insured | 9/15 at 100.00 | BBB |  |  | 163,291 |
| 500 |  | Chino Redevelopment Agency, California, Merged Chino Redevelopment Project Area Tax Allocation Bonds, Series 2006, 5.000%, 9/01/38 – AMBAC Insured | 9/16 at 101.00 | A– |  |  | 432,960 |
| 170 |  | National City Community Redevelopment Agency, California, Tax Allocation Revenue Bonds, National City Redevelopment Project Area, Series 2011, 6.500%, 8/01/24 | 8/21 at 100.00 | A– |  |  | 177,305 |
|  |  | Irvine, California, Unified School District, Community Facilities District Special Tax Bonds, Series 2006A: |  |  |  |  |  |
| 75 |  | 5.000%, 9/01/26 | 9/16 at 100.00 | N/R |  |  | 71,204 |
| 175 |  | 5.125%, 9/01/36 | 9/16 at 100.00 | N/R |  |  | 157,175 |
| 3,500 |  | Livermore Redevelopment Agency, California, Tax Allocation Revenue Bonds, Livermore Redevelopment Project Area, Series 2001A, 5.000%, 8/01/26 – NPFG Insured | 2/12 at 100.00 | BBB+ |  |  | 3,138,870 |
| 310 |  | Los Angeles Community Redevelopment Agency, California, Lease Revenue Bonds, Manchester Social Services Project, Series 2005, 5.000%, 9/01/37 – AMBAC Insured | 9/15 at 100.00 | A1 |  |  | 279,598 |
| 2,000 |  | Los Angeles, California, Municipal Improvement Corporation, Lease Revenue Bonds, Police Headquarters, Series 2006A, 4.750%, 1/01/31 – FGIC Insured | 1/17 at 100.00 | A+ |  |  | 1,914,460 |
| 475 |  | Lynwood Redevelopment Agency, California, Project A Revenue Bonds, Subordinate Lien Series 2011A, 7.250%, 9/01/38 | 9/21 at 100.00 | A– |  |  | 498,408 |
| 3,230 |  | Murrieta Redevelopment Agency, California, Tax Allocation Bonds, Series 2005, 5.000%, 8/01/35 – NPFG Insured | 8/15 at 100.00 | A– |  |  | 2,848,472 |
| 65 |  | Novato Redevelopment Agency, California, Tax Allocation Bonds, Hamilton Field Redevelopment Project, Series 2011, 6.750%, 9/01/40 | 9/21 at 100.00 | A– |  |  | 67,832 |
| 210 |  | Rancho Santa Fe CSD Financing Authority, California, Revenue Bonds, Superior Lien Series 2011A, 5.750%, 9/01/30 | 9/21 at 100.00 | BBB+ |  |  | 213,030 |
| 155 |  | Rialto Redevelopment Agency, California, Tax Allocation Bonds, Merged Project Area, Series 2005A, 5.000%, 9/01/35 – SYNCORA GTY Insured | 9/15 at 100.00 | A– |  |  | 135,954 |
| 40 |  | Riverside County Redevelopment Agency, California, Tax Allocation Bonds, Jurupa Valley Project Area, Series 2011-B, 6.500%, 10/01/25 | 10/21 at 100.00 | A– |  |  | 41,494 |
| 190 |  | Roseville, California, Certificates of Participation, Public Facilities, Series 2003A, 5.000%, 8/01/25 – AMBAC Insured | 8/13 at 100.00 | AA– |  |  | 191,683 |
| 1,500 |  | Sacramento City Financing Authority, California, Lease Revenue Refunding Bonds, Series 1993A, 5.400%, 11/01/20 – NPFG Insured | No Opt. Call | A1 |  |  | 1,631,520 |
| 3,000 |  | Sacramento City Financing Authority, California, Lease Revenue Refunding Bonds, Series 1993B, 5.400%, 11/01/20 | No Opt. Call | A1 |  |  | 3,263,040 |
| 2,000 |  | San Francisco City and County, California, Certificates of Participation, Multiple Capital Improvement Projects, Series 2009A, 5.200%, 4/01/26 | 4/19 at 100.00 | AA– |  |  | 2,126,660 |
| 30 |  | San Francisco Redevelopment Finance Authority, California, Tax Allocation Revenue Bonds, Mission Bay North Redevelopment Project, Series 2011C, 6.750%, 8/01/41 | 2/21 at 100.00 | A– |  |  | 31,807 |

Nuveen Investments |  | 33

|  | Nuveen California Premium Income Municipal Fund (continued)
NCU |  | Portfolio of Investments
|  | August 31, 2011 (Unaudited)

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

34 |  | Nuveen Investments

| Principal |  |  | Optional Call |  |  |  |  |
| Amount (000) |  | Description (1) | Provisions (2) | Ratings (3) |  |  | Value |
|  |  | Water and Sewer (continued) |  |  |  |  |  |
$ | 670 |  | Metropolitan Water District of Southern California, Waterworks Revenue Bonds, Tender Option Bond Trust 09-8B, 17.115%, 7/01/35 (IF) (6) | 7/19 at 100.00 | AAA |  | $ | 843,931 |
| 1,500 |  | Orange County Water District, California, Revenue Certificates of Participation, Tender Option Bond Trust 11782-1, 17.486%, 2/15/35 (IF) | 8/20 at 100.00 | AAA |  |  | 1,793,400 |
| 1,795 |  | Woodbridge Irrigation District, California, Certificates of Participation, Water Systems Project, Series 2003, 5.500%, 7/01/33 | 7/13 at 100.00 | A+ |  |  | 1,795,158 |
| 5,295 |  | Total Water and Sewer |  |  |  |  | 5,809,134 |
$ | 126,034 |  | Total Investments (cost $118,175,890) – 149.7% |  |  |  |  | 120,480,672 |
|  |  | Floating Rate Obligations – (8.3)% |  |  |  |  | (6,650,000 | )
|  |  | MuniFund Term Preferred Shares, at Liquidation Value – (43.8)% (7) |  |  |  |  | (35,250,000 | )
|  |  | Other Assets Less Liabilities – 2.4% |  |  |  |  | 1,918,808 |
|  |  | Net Assets Applicable to Common Shares – 100% |  |  |  | $ | 80,499,480 |

(1) |  | All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted.
(2) |  | Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns.
(3) |  | Ratings: Using the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investor Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies.
(4) |  | For fair value measurement disclosure purposes, investment categorized as Level 3. See Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies, Investment Valuation for more information.
(5) |  | Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities, which ensure the timely payment of principal and interest. Bonds backed by U.S. Government or agency securities are given an implied rating equal to the rating of such securities.
(6) |  | Investment, or portion of investment, has been pledged to collaterize the net payment obligations for investments in inverse floating rate transactions.
(7) |  | MuniFund Term Preferred Shares, at Liquidation Value as a percentage of Total Investments is 29.3%.
N/R |  | Not rated.
WI/DD |  | Purchased on a when-issued or delayed delivery basis.
(ETM) |  | Escrowed to maturity.
(IF) |  | Inverse floating rate investment.
(UB) |  | Underlying bond of an inverse floating rate trust reflected as a financing transaction. See Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies, Inverse Floating Rate Securities for more information.

See accompanying notes to financial statements.

Nuveen Investments |  | 35

|  | Nuveen California Dividend Advantage Municipal Fund
NAC |  | Portfolio of Investments
|  | August 31, 2011 (Unaudited)

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

36 |  | Nuveen Investments

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

Nuveen Investments |  | 37

|  | Nuveen California Dividend Advantage Municipal Fund (continued)
NAC |  | Portfolio of Investments
|  | August 31, 2011 (Unaudited)

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

38 |  | Nuveen Investments

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

Nuveen Investments |  | 39

|  | Nuveen California Dividend Advantage Municipal Fund (continued)
NAC |  | Portfolio of Investments
|  | August 31, 2011 (Unaudited)

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

40 |  | Nuveen Investments

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

Nuveen Investments |  | 41

|  | Nuveen California Dividend Advantage Municipal Fund (continued)
NAC |  | Portfolio of Investments
|  | August 31, 2011 (Unaudited)

| Principal |  |  | Optional Call |  |  |  |  |
| Amount (000) |  | Description (1) | Provisions (2) | Ratings (3) |  |  | Value |
|  |  | Water and Sewer (continued) |  |  |  |  |  |
$ | 8,250 |  | Pico Rivera Water Authority, California, Revenue Bonds, Series 2001A, 6.250%, 12/01/32 | 12/11 at 102.00 | N/R |  | $ | 8,134,583 |
| 2,250 |  | Sacramento County Sanitation District Financing Authority, California, Revenue Bonds, Series 2006, 5.000%, 12/01/31 – FGIC Insured | 6/16 at 100.00 | AA |  |  | 2,340,900 |
| 11,000 |  | San Diego Public Facilities Financing Authority, California, Sewerage Revenue Bonds, Refunding Series 2010A, 5.250%, 5/15/26 | 5/20 at 100.00 | Aa3 |  |  | 12,262,800 |
| 2,000 |  | West Basin Municipal Water District, California, Certificates of Participation, Refunding Series 2008B, 5.000%, 8/01/28 – AGC Insured | 8/18 at 100.00 | AA+ |  |  | 2,079,877 |
| 37,665 |  | Total Water and Sewer |  |  |  |  | 39,852,154 |
$ | 555,221 |  | Total Investments (cost $474,080,086) – 145.4% |  |  |  |  | 471,401,920 |
|  |  | Floating Rate Obligations – (8.8)% |  |  |  |  | (28,545,000 | )
|  |  | Variable Rate Demand Preferred Shares, at Liquidation Value – (42.0)% (7) |  |  |  |  | (136,200,000 | )
|  |  | Other Assets Less Liabilities – 5.4% |  |  |  |  | 17,546,724 |
|  |  | Net Assets Applicable to Common Shares – 100% |  |  |  | $ | 324,203,644 |

(1) |  | All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted.
(2) |  | Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns.
(3) |  | Ratings: Using the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investor Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies.
(4) |  | At or subsequent to the end of the reporting period, this security is non-income producing. Non-income producing security, in the case of a bond, generally denotes that the issuer has (1) defaulted on the payment of principal or interest, (2) is under the protection of the Federal Bankruptcy Court or (3) the Fund’s Adviser has concluded that the issue is not likely to meet its future interest payment obligations and has directed the Fund’s custodian to cease accruing additional income on the Fund’s records.
(5) |  | For fair value measurement disclosure purposes, investment categorized as Level 3. See Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies, Investment Valuation for more information.
(6) |  | Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities, which ensure the timely payment of principal and interest. Bonds backed by U.S. Government or agency securities are given an implied rating equal to the rating of such securities.
(7) |  | Variable Rate Demand Preferred Shares, at Liquidation Value as a percentage of Total Investments is 28.9%.
N/R |  | Not rated.
(ETM) |  | Escrowed to maturity.
(IF) |  | Inverse floating rate investment.
(UB) |  | Underlying bond of an inverse floating rate trust reflected as a financing transaction. See Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies, Inverse Floating Rate Securities for more information.

See accompanying notes to financial statements.

42 |  | Nuveen Investments

|  | Nuveen California Dividend Advantage Municipal Fund 2
NVX |  | Portfolio of Investments
|  | August 31, 2011 (Unaudited)

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

Nuveen Investments |  | 43

|  | Nuveen California Dividend Advantage Municipal Fund 2 (continued)
NVX |  | Portfolio of Investments
|  | August 31, 2011 (Unaudited)

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

44 |  | Nuveen Investments

| Principal |  |  | Optional Call |  |  |  |  |
| Amount (000) |  | Description (1) | Provisions (2) | Ratings (3) |  |  | Value |
|  |  | Housing/Single Family – 2.7% (1.8% of Total Investments) |  |  |  |  |  |
$ | 250 |  | California Housing Finance Agency, Home Mortgage Revenue Bonds, Series 2006H, 5.750%, 8/01/30 – FGIC Insured (Alternative Minimum Tax) | 2/16 at 100.00 | Baa1 |  | $ | 250,160 |
| 5,775 |  | California Housing Finance Agency, Home Mortgage Revenue Bonds, Series 2006M, 4.650%, 8/01/31 (Alternative Minimum Tax) | 2/16 at 100.00 | Baa1 |  |  | 4,981,053 |
| 375 |  | California Rural Home Mortgage Finance Authority, Mortgage-Backed Securities Program Single Family Mortgage Revenue Bonds, Series 2001A, 5.650%, 12/01/31 (Alternative Minimum Tax) | 12/11 at 102.00 | A– |  |  | 391,080 |
| 6,400 |  | Total Housing/Single Family |  |  |  |  | 5,622,293 |
|  |  | Industrials – 0.3% (0.2% of Total Investments) |  |  |  |  |  |
| 3,175 |  | California Statewide Communities Development Authority, Revenue Bonds, EnerTech Regional Biosolids Project, Series 2007A, 5.500%, 12/01/33 (Alternative Minimum Tax) (5) | No Opt. Call | CCC+ |  |  | 699,580 |
|  |  | Long-Term Care – 2.4% (1.6% of Total Investments) |  |  |  |  |  |
| 1,550 |  | California Health Facilities Financing Authority, Cal-Mortgage Insured Revenue Bonds, Northern California Retired Officers Community Corporation – Paradise Valley Estates, Series 2002, 5.125%, 1/01/22 | 1/13 at 100.00 | A– |  |  | 1,578,706 |
| 3,750 |  | California Statewide Communities Development Authority, Revenue Bonds, Inland Regional Center Project, Series 2007, 5.375%, 12/01/37 | 12/17 at 100.00 | Baa1 |  |  | 3,479,063 |
| 5,300 |  | Total Long-Term Care |  |  |  |  | 5,057,769 |
|  |  | Tax Obligation/General – 22.9% (15.6% of Total Investments) |  |  |  |  |  |
| 10,000 |  | California State, General Obligation Bonds, Series 2006CD, 4.600%, 12/01/32 (Alternative Minimum Tax) | 12/15 at 100.00 | AA |  |  | 9,130,900 |
| 13,850 |  | California State, General Obligation Bonds, Various Purpose Series 2009, 6.000%, 4/01/38 | No Opt. Call | A1 |  |  | 15,120,599 |
| 2,000 |  | California State, General Obligation Bonds, Various Purpose Series 2010, 6.000%, 3/01/33 | 3/20 at 100.00 | A1 |  |  | 2,260,460 |
| 3,615 |  | Colton Joint Unified School District, San Bernardino County, California, General Obligation Bonds, Series 2002A, 5.500%, 8/01/22 – FGIC Insured | 8/12 at 102.00 | Aa3 |  |  | 3,813,753 |
|  |  | Contra Costa County Community College District, California, General Obligation Bonds, Series 2002: |  |  |  |  |  |
| 3,005 |  | 5.000%, 8/01/21 – FGIC Insured | 8/12 at 100.00 | Aa1 |  |  | 3,112,609 |
| 3,300 |  | 5.000%, 8/01/22 – FGIC Insured | 8/12 at 100.00 | Aa1 |  |  | 3,405,435 |
| 1,285 |  | Los Angeles Unified School District, Los Angeles County, California, General Obligation Bonds, Series 2009D, 5.000%, 7/01/27 | 7/19 at 100.00 | Aa2 |  |  | 1,379,101 |
| 2,000 |  | Puerto Rico, General Obligation and Public Improvement Bonds, Series 2002A, 5.500%, 7/01/20 – NPFG Insured | No Opt. Call | Baa1 |  |  | 2,190,880 |
| 355 |  | Roseville Joint Union High School District, Placer County, California, General Obligation Bonds, Series 2006B, 5.000%, 8/01/27 – FGIC Insured | 8/15 at 100.00 | AA– |  |  | 367,546 |
| 1,000 |  | Southwestern Community College District, San Diego County, California, General Obligation Bonds, Election of 2008, Series 2011C, 5.250%, 8/01/36 | 8/21 at 100.00 | Aa2 |  |  | 1,045,980 |
|  |  | Yosemite Community College District, California, General Obligation Bonds, Capital Appreciation, Election 2004, Series 2010D: |  |  |  |  |  |
| 6,480 |  | 0.000%, 8/01/31 | No Opt. Call | Aa2 |  |  | 1,833,646 |
| 17,510 |  | 0.000%, 8/01/42 | No Opt. Call | Aa2 |  |  | 4,998,230 |
| 64,400 |  | Total Tax Obligation/General |  |  |  |  | 48,659,139 |
|  |  | Tax Obligation/Limited – 17.0% (11.6% of Total Investments) |  |  |  |  |  |
|  |  | Beaumont Financing Authority, California, Local Agency Revenue Bonds, Series 2004D: |  |  |  |  |  |
| 650 |  | 5.500%, 9/01/24 | 9/14 at 102.00 | N/R |  |  | 630,065 |
| 385 |  | 5.800%, 9/01/35 | 9/14 at 102.00 | N/R |  |  | 358,200 |
| 1,190 |  | Borrego Water District, California, Community Facilities District 2007-1 Montesoro, Special Tax Bonds, Series 2007, 5.750%, 8/01/25 (5), (6) | 8/17 at 102.00 | N/R |  |  | 440,300 |
| 4,900 |  | California State Public Works Board, Lease Revenue Bonds, Department of Corrections, Series 2003C, 5.500%, 6/01/16 | 12/13 at 100.00 | A2 |  |  | 5,212,032 |

Nuveen Investments |  | 45

|  | Nuveen California Dividend Advantage Municipal Fund 2 (continued)
NVX |  | Portfolio of Investments
|  | August 31, 2011 (Unaudited)

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

46 |  | Nuveen Investments

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

Nuveen Investments |  | 47

|  | Nuveen California Dividend Advantage Municipal Fund 2 (continued)
NVX |  | Portfolio of Investments
|  | August 31, 2011 (Unaudited)

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

48 |  | Nuveen Investments

| Principal |  |  | Optional Call |  |  |  |  |
| Amount (000) |  | Description (1) | Provisions (2) | Ratings (3) |  |  | Value |
|  |  | Water and Sewer (continued) |  |  |  |  |  |
$ | 1,700 |  | San Buenaventura, California, Wastewater Revenue Certificates of Participation, Series 2004, 5.000%, 3/01/24 – NPFG Insured | 3/14 at 100.00 | AA |  | $ | 1,762,390 |
| 4,785 |  | San Diego Public Facilities Financing Authority, California, Subordinate Lien Water Revenue Bonds, Series 2002, 5.000%, 8/01/21 – NPFG Insured | 8/12 at 100.00 | Aa3 |  |  | 4,948,309 |
| 10,000 |  | San Francisco City and County Public Utilities Commission, California, Clean Water Revenue Refunding Bonds, Series 2003A, 5.250%, 10/01/20 – NPFG Insured | 4/13 at 100.00 | AA– |  |  | 10,571,497 |
| 21,840 |  | Total Water and Sewer |  |  |  |  | 23,269,662 |
$ | 337,335 |  | Total Investments (cost $311,810,849) – 147.0% |  |  |  |  | 312,133,175 |
|  |  | Floating Rate Obligations – (5.4)% |  |  |  |  | (11,390,000 | )
|  |  | MuniFund Term Preferred Shares, at Liquidation Value – (46.1)% (8) |  |  |  |  | (97,846,300 | )
|  |  | Other Assets Less Liabilities – 4.5% |  |  |  |  | 9,478,476 |
|  |  | Net Assets Applicable to Common Shares – 100% |  |  |  | $ | 212,375,351 |

(1) |  | All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted.
(2) |  | Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns.
(3) |  | Ratings: Using the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investor Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies.
(4) |  | Investment, or portion of investment, has been pledged to collaterize the net payment obligations for investments in inverse floating rate transactions.
(5) |  | At or subsequent to the end of the reporting period, this security is non-income producing. Non-income producing security, in the case of a bond, generally denotes that the issuer has (1) defaulted on the payment of principal or interest, (2) is under the protection of the Federal Bankruptcy Court or (3) the Fund’s Adviser has concluded that the issue is not likely to meet its future interest payment obligations and has directed the Fund’s custodian to cease accruing additional income on the Fund’s records.
(6) |  | For fair value measurement disclosure purposes, investment categorized as Level 3. See Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies, Investment Valuation for more information.
(7) |  | Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities, which ensure the timely payment of principal and interest. Bonds backed by U.S. Government or agency securities are given an implied rating equal to the rating of such securities.
(8) |  | MuniFund Term Preferred Shares, at Liquidation Value as a percentage of Total Investments is 31.3%.
N/R |  | Not rated.
(ETM) |  | Escrowed to maturity.
(IF) |  | Inverse floating rate investment.
(UB) |  | Underlying bond of an inverse floating rate trust reflected as a financing transaction. See Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies, Inverse Floating Rate Securities for more information.

See accompanying notes to financial statements.

Nuveen Investments |  | 49

|  | Nuveen California Dividend Advantage Municipal Fund 3
NZH |  | Portfolio of Investments
|  | August 31, 2011 (Unaudited)

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

50 |  | Nuveen Investments

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

Nuveen Investments |  | 51

|  | Nuveen California Dividend Advantage Municipal Fund 3 (continued)
NZH |  | Portfolio of Investments
|  | August 31, 2011 (Unaudited)

| Principal |  |  | Optional Call |  |  |  |  |
| Amount (000) |  | Description (1) | Provisions (2) | Ratings (3) |  |  | Value |
|  |  | Housing/Multifamily (continued) |  |  |  |  |  |
$ | 3,610 |  | San Bernardino County Housing Authority, California, GNMA Collateralized Multifamily Mortgage Revenue Bonds, Pacific Palms Mobile Home Park, Series 2001A, 6.700%, 12/20/41 | 11/11 at 105.00 | Aaa |  | $ | 3,774,580 |
|  |  | San Jose, California, Multifamily Housing Revenue Bonds, GNMA Mortgage-Backed Securities Program, Lenzen Housing, Series 2001B: |  |  |  |  |  |
| 1,250 |  | 5.350%, 2/20/26 (Alternative Minimum Tax) | 2/12 at 102.00 | AA+ |  |  | 1,263,800 |
| 2,880 |  | 5.450%, 2/20/43 (Alternative Minimum Tax) | 2/12 at 102.00 | AA+ |  |  | 2,892,442 |
| 12,955 |  | Total Housing/Multifamily |  |  |  |  | 13,074,350 |
|  |  | Housing/Single Family – 3.0% (2.1% of Total Investments) |  |  |  |  |  |
| 420 |  | California Housing Finance Agency, Home Mortgage Revenue Bonds, Series 2006H, 5.750%, 8/01/30 – FGIC Insured (Alternative Minimum Tax) | 2/16 at 100.00 | Baa1 |  |  | 420,269 |
|  |  | California Housing Finance Agency, Home Mortgage Revenue Bonds, Tender Option Bond Trust 3206: |  |  |  |  |  |
| 10,180 |  | 8.116%, 02/01/24 (Alternative Minimum Tax) (IF) | 2/16 at 100.00 | BBB |  |  | 6,681,745 |
| 3,805 |  | 8.488%, 02/01/24 (Alternative Minimum Tax) (IF) | 2/17 at 100.00 | BBB |  |  | 2,407,233 |
| 14,405 |  | Total Housing/Single Family |  |  |  |  | 9,509,247 |
|  |  | Industrials – 2.0% (1.4% of Total Investments) |  |  |  |  |  |
| 5,000 |  | California Pollution Control Financing Authority, Solid Waste Disposal Revenue Bonds, Waste Management Inc., Series 2005C, 5.125%, 11/01/23 (Alternative Minimum Tax) | 11/15 at 101.00 | BBB |  |  | 5,101,550 |
| 5,205 |  | California Statewide Communities Development Authority, Revenue Bonds, EnerTech Regional Biosolids Project, Series 2007A, 5.500%, 12/01/33 (Alternative Minimum Tax) (5) | No Opt. Call | CCC+ |  |  | 1,146,870 |
| 10,205 |  | Total Industrials |  |  |  |  | 6,248,420 |
|  |  | Long-Term Care – 2.0% (1.4% of Total Investments) |  |  |  |  |  |
| 2,450 |  | California Health Facilities Financing Authority, Cal-Mortgage Insured Revenue Bonds, Northern California Retired Officers Community Corporation – Paradise Valley Estates, Series 2002, 5.125%, 1/01/22 | 1/13 at 100.00 | A– |  |  | 2,495,374 |
|  |  | California Health Facilities Financing Authority, Insured Senior Living Revenue Bonds, Aldersly Project, Series 2002A: |  |  |  |  |  |
| 1,500 |  | 5.125%, 3/01/22 | 3/12 at 101.00 | A– |  |  | 1,519,680 |
| 1,315 |  | 5.250%, 3/01/32 | 3/12 at 101.00 | A– |  |  | 1,304,401 |
| 1,000 |  | California Municipal Finance Authority, Revenue Bonds, Harbor Regional Center Project, Series 2009, 8.000%, 11/01/29 | 11/19 at 100.00 | Baa1 |  |  | 1,087,160 |
| 6,265 |  | Total Long-Term Care |  |  |  |  | 6,406,615 |
|  |  | Tax Obligation/General – 11.2% (7.6% of Total Investments) |  |  |  |  |  |
|  |  | California State, General Obligation Bonds, Various Purpose Series 2009: |  |  |  |  |  |
| 3,500 |  | 5.500%, 11/01/39 | 11/19 at 100.00 | A1 |  |  | 3,640,875 |
| 3,040 |  | 6.000%, 11/01/39 | 11/19 at 100.00 | A1 |  |  | 3,330,046 |
| 1,960 |  | California State, General Obligation Bonds, Various Purpose Series 2010, 5.500%, 3/01/40 | 3/20 at 100.00 | A1 |  |  | 2,041,654 |
| 15 |  | California, General Obligation Veterans Welfare Bonds, Series 2001BZ, 5.350%, 12/01/21 – NPFG Insured (Alternative Minimum Tax) | 12/11 at 100.00 | AA |  |  | 15,016 |
| 3,000 |  | Contra Costa County Community College District, California, General Obligation Bonds, Series 2002, 5.000%, 8/01/23 – FGIC Insured | 8/12 at 100.00 | Aa1 |  |  | 3,095,850 |
| 2,260 |  | Jurupa Unified School District, Riverside County, California, General Obligation Bonds, Series 2002, 5.125%, 8/01/22 – FGIC Insured | 2/12 at 101.00 | A+ |  |  | 2,285,538 |
| 18,500 |  | Poway Unified School District, San Diego County, California, School Facilities Improvement District 2007-1 General Obligation Bonds, Series 2011B, 0.000%, 8/01/46 | No Opt. Call | Aa2 |  |  | 1,942,500 |
| 870 |  | Puerto Rico, General Obligation and Public Improvement Bonds, Series 2001, 5.000%, 7/01/24 – AGM Insured | 11/11 at 100.00 | AA+ |  |  | 870,348 |
| 575 |  | Roseville Joint Union High School District, Placer County, California, General Obligation Bonds, Series 2006B, 5.000%, 8/01/27 – FGIC Insured | 8/15 at 100.00 | AA– |  |  | 595,321 |

52 |  | Nuveen Investments

| Principal |  |  | Optional Call |  |  |  |  |
| Amount (000) |  | Description (1) | Provisions (2) | Ratings (3) |  |  | Value |
|  |  | Tax Obligation/General (continued) |  |  |  |  |  |
$ | 4,000 |  | San Diego Unified School District, San Diego County, California, General Obligation Bonds, Election of 1998, Series 2002D, 5.250%, 7/01/21 – FGIC Insured | 7/12 at 101.00 | Aa1 |  | $ | 4,189,480 |
| 2,715 |  | San Jose-Evergreen Community College District, Santa Clara County, California, General Obligation Bonds, Series 2005A, 5.000%, 9/01/25 – NPFG Insured | 9/15 at 100.00 | Aa1 |  |  | 2,837,419 |
| 2,115 |  | San Mateo Union High School District, San Mateo County, California, General Obligation Bonds, Election 2010 Series 2011A, 5.000%, 9/01/42 | 9/21 at 100.00 | Aa1 |  |  | 2,210,683 |
|  |  | Yosemite Community College District, California, General Obligation Bonds, Capital Appreciation, Election 2004, Series 2010D: |  |  |  |  |  |
| 15,000 |  | 0.000%, 8/01/31 | No Opt. Call | Aa2 |  |  | 4,244,550 |
| 12,520 |  | 0.000%, 8/01/42 | No Opt. Call | Aa2 |  |  | 3,573,834 |
| 70,070 |  | Total Tax Obligation/General |  |  |  |  | 34,873,114 |
|  |  | Tax Obligation/Limited – 42.9% (29.2% of Total Investments) |  |  |  |  |  |
| 1,960 |  | Borrego Water District, California, Community Facilities District 2007-1 Montesoro, Special Tax Bonds, Series 2007, 5.750%, 8/01/25 (5), (6) | 8/17 at 102.00 | N/R |  |  | 725,200 |
| 7,135 |  | Brentwood Infrastructure Financing Authority, Contra Costa County, California, Capital Improvement Revenue Bonds, Series 2001, 5.000%, 11/01/25 – AGM Insured | 11/11 at 100.00 | AA+ |  |  | 7,175,884 |
| 8,210 |  | California State Public Works Board, Lease Revenue Bonds, Department of Corrections, Series 2003C, 5.500%, 6/01/16 | 12/13 at 100.00 | A2 |  |  | 8,732,813 |
| 4,000 |  | California State Public Works Board, Lease Revenue Bonds, Department of General Services, Series 2002B, 5.000%, 3/01/27 – AMBAC Insured | 3/12 at 100.00 | A2 |  |  | 4,004,200 |
| 4,510 |  | California State Public Works Board, Lease Revenue Bonds, Department of Mental Health, Hospital Addition, Series 2001A, 5.000%, 12/01/26 – AMBAC Insured | 12/11 at 102.00 | A2 |  |  | 4,537,962 |
| 1,000 |  | California State Public Works Board, Lease Revenue Bonds, Various Capital Projects, Series 2009G-1, 5.750%, 10/01/30 | 10/19 at 100.00 | A2 |  |  | 1,050,340 |
| 2,260 |  | California State Public Works Board, Lease Revenue Bonds, Various Capital Projects, Series 2010A-1, 5.750%, 3/01/30 | 3/20 at 100.00 | A2 |  |  | 2,378,605 |
|  |  | Capistrano Unified School District, Orange County, California, Special Tax Bonds, Community Facilities District 90-2 – Talega, Series 2003: |  |  |  |  |  |
| 1,750 |  | 5.875%, 9/01/23 | 9/13 at 100.00 | N/R |  |  | 1,775,813 |
| 550 |  | 6.000%, 9/01/33 | 9/13 at 100.00 | N/R |  |  | 551,639 |
| 715 |  | Capistrano Unified School District, Orange County, California, Special Tax Bonds, Community Facilities District, Series 2005, 5.000%, 9/01/24 – FGIC Insured | 9/15 at 100.00 | BBB |  |  | 707,593 |
| 2,160 |  | Chino Redevelopment Agency, California, Merged Chino Redevelopment Project Area Tax Allocation Bonds, Series 2006, 5.000%, 9/01/38 – AMBAC Insured | 9/16 at 101.00 | A– |  |  | 1,870,387 |
| 725 |  | National City Community Redevelopment Agency, California, Tax Allocation Revenue Bonds, National City Redevelopment Project Area, Series 2011, 6.500%, 8/01/24 | 8/21 at 100.00 | A– |  |  | 756,153 |
| 1,125 |  | Fontana, California, Special Tax Bonds, Sierra Community Facilities District 22, Series 2004, 6.000%, 9/01/34 | 9/14 at 100.00 | N/R |  |  | 1,080,338 |
| 3,500 |  | Fremont, California, Special Tax Bonds, Community Facilities District 1, Pacific Commons, Series 2005, 6.300%, 9/01/31 | 3/12 at 100.00 | N/R |  |  | 3,500,665 |
| 1,000 |  | Fullerton Community Facilities District 1, California, Special Tax Bonds, Amerige Heights, Series 2002, 6.100%, 9/01/22 | 9/12 at 100.00 | N/R |  |  | 1,016,060 |
|  |  | Irvine, California, Unified School District, Community Facilities District Special Tax Bonds, Series 2006A: |  |  |  |  |  |
| 330 |  | 5.000%, 9/01/26 | 9/16 at 100.00 | N/R |  |  | 313,295 |
| 760 |  | 5.125%, 9/01/36 | 9/16 at 100.00 | N/R |  |  | 682,586 |
| 3,000 |  | Lake Elsinore Public Finance Authority, California, Local Agency Revenue Refunding Bonds, Series 2003H, 6.000%, 10/01/20 | 10/13 at 102.00 | N/R |  |  | 3,092,760 |

Nuveen Investments |  | 53

|  | Nuveen California Dividend Advantage Municipal Fund 3 (continued)
NZH |  | Portfolio of Investments
|  | August 31, 2011 (Unaudited)

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

54 |  | Nuveen Investments

| Principal |  |  | Optional Call |  |  |  |  |
| Amount (000) |  | Description (1) | Provisions (2) | Ratings (3) |  |  | Value |
|  |  | Tax Obligation/Limited (continued) |  |  |  |  |  |
$ | 2,300 |  | San Francisco Bay Area Rapid Transit District, California, Sales Tax Revenue Bonds, Series 2001, 5.000%, 7/01/26 – AMBAC Insured | 11/11 at 100.00 | AA+ |  | $ | 2,305,819 |
| 125 |  | San Francisco Redevelopment Finance Authority, California, Tax Allocation Revenue Bonds, Mission Bay North Redevelopment Project, Series 2011C, 6.750%, 8/01/41 | 2/21 at 100.00 | A– |  |  | 132,529 |
|  |  | San Francisco Redevelopment Financing Authority, California, Tax Allocation Revenue Bonds, Mission Bay South Redevelopment Project, Series 2011D: |  |  |  |  |  |
| 125 |  | 7.000%, 8/01/33 | 2/21 at 100.00 | BBB |  |  | 131,589 |
| 160 |  | 7.000%, 8/01/41 | 2/21 at 100.00 | BBB |  |  | 167,853 |
| 215 |  | Signal Hill Redevelopment Agency, California, Project 1 Tax Allocation Bonds, Series 2011, 7.000%, 10/01/26 | 4/21 at 100.00 | N/R |  |  | 216,322 |
| 8,710 |  | South Orange County Public Financing Authority, California, Special Tax Revenue Bonds, Ladera Ranch, Series 2005A, 5.000%, 8/15/32 – AMBAC Insured | 8/15 at 100.00 | BBB+ |  |  | 8,141,150 |
| 1,165 |  | Temecula Redevelopment Agency, California, Redevelopment Project 1 Tax Allocation Housing Bonds Series 2011A, 7.000%, 8/01/39 | 8/21 at 100.00 | A |  |  | 1,246,550 |
| 600 |  | West Patterson Financing Authority, California, Special Tax Bonds, Community Facilities District 01-1, Refunding Series 2009A, 8.625%, 9/01/39 | 9/14 at 105.00 | N/R |  |  | 640,212 |
| 2,810 |  | West Patterson Financing Authority, California, Special Tax Bonds, Community Facilities District 01-1, Series 2003B, 7.000%, 9/01/38 | 9/13 at 103.00 | N/R |  |  | 2,645,250 |
| 2,000 |  | West Patterson Financing Authority, California, Special Tax Bonds, Community Facilities District 01-1, Series 2004B, 6.000%, 9/01/39 | 9/13 at 102.00 | N/R |  |  | 1,646,920 |
| 1,375 |  | West Patterson Financing Authority, California, Special Tax Bonds, Community Facilities District 2001-1, Series 2004A, 6.125%, 9/01/39 | 9/13 at 103.00 | N/R |  |  | 1,152,209 |
| 370 |  | Yorba Linda Redevelopment Agency, Orange County, California, Tax Allocation Revenue Bonds, Yorba Linda Redevelopment Project, Subordinate Lien Series 2011A, 6.500%, 9/01/32 | 9/21 at 100.00 | A– |  |  | 385,740 |
| 2,500 |  | Yucaipa-Calimesa Joint Unified School District, San Bernardino County, California, General Obligation Refunding Bonds, Series 2001A, 5.000%, 10/01/26 – NPFG Insured | 10/11 at 100.00 | A2 |  |  | 2,500,175 |
| 137,925 |  | Total Tax Obligation/Limited |  |  |  |  | 133,905,090 |
|  |  | Transportation – 7.4% (5.0% of Total Investments) |  |  |  |  |  |
| 1,690 |  | Bay Area Toll Authority, California, Revenue Bonds, San Francisco Bay Area Toll Bridge, Series 2006F, 5.000%, 4/01/31 (UB) | 4/16 at 100.00 | AA |  |  | 1,746,852 |
| 11,750 |  | Foothill/Eastern Transportation Corridor Agency, California, Toll Road Revenue Refunding Bonds, Series 1999, 5.875%, 1/15/28 | 1/14 at 101.00 | BBB– |  |  | 11,597,250 |
|  |  | San Francisco Airports Commission, California, Revenue Bonds, San Francisco International Airport, Second Series 2003, Issue 29B: |  |  |  |  |  |
| 4,110 |  | 5.125%, 5/01/17 – FGIC Insured | 5/13 at 100.00 | A+ |  |  | 4,324,172 |
| 5,140 |  | 5.125%, 5/01/19 – FGIC Insured | 5/13 at 100.00 | A+ |  |  | 5,355,212 |
| 22,690 |  | Total Transportation |  |  |  |  | 23,023,486 |
|  |  | U.S. Guaranteed – 15.8% (10.8% of Total Investments) (7) |  |  |  |  |  |
| 4,000 |  | Beaumont Financing Authority, California, Local Agency Revenue Bonds, Series 2002A, 6.750%, 9/01/25 (Pre-refunded 9/01/12) | 9/12 at 102.00 | N/R (7) |  |  | 4,333,680 |
| 7,510 |  | California County Tobacco Securitization Agency, Tobacco Settlement Asset-Backed Bonds, Merced County Tobacco Funding Corporation, Series 2002A, 5.500%, 6/01/33 (Pre-refunded 6/01/12) | 6/12 at 100.00 | Baa3 (7) |  |  | 7,747,091 |
|  |  | California Department of Water Resources, Power Supply Revenue Bonds, Series 2002A: |  |  |  |  |  |
| 3,500 |  | 5.375%, 5/01/17 (Pre-refunded 5/01/12) – SYNCORA GTY Insured | 5/12 at 101.00 | Aaa |  |  | 3,655,925 |
| 8,000 |  | 5.125%, 5/01/18 (Pre-refunded 5/01/12) | 5/12 at 101.00 | Aaa |  |  | 8,343,040 |
| 720 |  | California Statewide Community Development Authority, Revenue Bonds, Thomas Jefferson School of Law, Series 2005A, 4.875%, 10/01/31 (Pre-refunded 10/01/15) | 10/15 at 100.00 | N/R (7) |  |  | 806,774 |

Nuveen Investments |  | 55

|  | Nuveen California Dividend Advantage Municipal Fund 3 (continued)
NZH |  | Portfolio of Investments
|  | August 31, 2011 (Unaudited)

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

56 |  | Nuveen Investments

| Principal |  |  | Optional Call |  |  |  |  |
| Amount (000) |  | Description (1) | Provisions (2) | Ratings (3) |  |  | Value |
|  |  | Water and Sewer (continued) |  |  |  |  |  |
|  |  | San Diego Public Facilities Financing Authority, California, Subordinate Lien Water Revenue Bonds, Series 2002: |  |  |  |  |  |
$ | 2,500 |  | 5.000%, 8/01/23 – NPFG Insured | 8/12 at 100.00 | Aa3 |  | $ | 2,575,000 |
| 6,260 |  | 5.000%, 8/01/24 – NPFG Insured | 8/12 at 100.00 | Aa3 |  |  | 6,437,906 |
| 3,315 |  | San Francisco City and County Public Utilities Commission, California, Clean Water Revenue Refunding Bonds, Series 2003A, 5.250%, 10/01/18 – NPFG Insured | 4/13 at 100.00 | AA– |  |  | 3,517,875 |
| 23,010 |  | Total Water and Sewer |  |  |  |  | 23,572,501 |
$ | 517,189 |  | Total Investments (cost $467,625,600) – 146.7% |  |  |  |  | 458,328,583 |
|  |  | Floating Rate Obligations – (1.2)% |  |  |  |  | (3,845,000 | )
|  |  | MuniFund Term Preferred Shares, at Liquidation Value – (51.1)% (8) |  |  |  |  | (159,544,500 | )
|  |  | Other Assets Less Liabilities – 5.6% |  |  |  |  | 17,486,211 |
|  |  | Net Assets Applicable to Common Shares – 100% |  |  |  | $ | 312,425,294 |

(1) |  | All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted.
(2) |  | Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns.
(3) |  | Ratings: Using the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investor Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies.
(4) |  | Investment, or portion of investment, has been pledged to collaterize the net payment obligations for investments in inverse floating rate transactions.
(5) |  | At or subsequent to the end of the reporting period, this security is non-income producing. Non-income producing security, in the case of a bond, generally denotes that the issuer has (1) defaulted on the payment of principal or interest, (2) is under the protection of the Federal Bankruptcy Court or (3) the Fund’s Adviser has concluded that the issue is not likely to meet its future interest payment obligations and has directed the Fund’s custodian to cease accruing additional income on the Fund’s records.
(6) |  | For fair value measurement disclosure purposes, investment categorized as Level 3. See Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies, Investment Valuation for more information.
(7) |  | Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities, which ensure the timely payment of principal and interest. Bonds backed by U.S. Government or agency securities are given an implied rating equal to the rating of such securities.
(8) |  | MuniFund Term Preferred Shares, at Liquidation Value as a percentage of Total Investments is 34.8%.
N/R |  | Not rated.
(IF) |  | Inverse floating rate investment.
(UB) |  | Underlying bond of an inverse floating rate trust reflected as a financing transaction. See Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies, Inverse Floating Rate Securities for more information.

See accompanying notes to financial statements.

Nuveen Investments |  | 57

|  | Nuveen Insured California Dividend Advantage Municipal Fund
NKL |  | Portfolio of Investments
|  | August 31, 2011 (Unaudited)

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

58 |  | Nuveen Investments

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

Nuveen Investments |  | 59

|  | Nuveen Insured California Dividend Advantage Municipal Fund (continued)
NKL |  | Portfolio of Investments
|  | August 31, 2011 (Unaudited)

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

60 |  | Nuveen Investments

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

Nuveen Investments |  | 61

|  | Nuveen Insured California Dividend Advantage Municipal Fund (continued)
NKL |  | Portfolio of Investments

August 31, 2011 (Unaudited)

| Principal |  |  | Optional Call |  |  |  |  |
| Amount (000) |  | Description (1) | Provisions (2) | Ratings (3) |  |  | Value |
|  |  | Water and Sewer (continued) |  |  |  |  |  |
$ | 8,000 |  | San Diego County Water Authority, California, Water Revenue Certificates of Participation, Series 2008A, 5.000%, 5/01/38 – AGM Insured | 5/18 at 100.00 | AA+ |  | $ | 8,225,360 |
|  |  | Semitropic Water Storage District, Kern County, California, Water Banking Revenue Bonds, Series 2004A: |  |  |  |  |  |
| 1,315 |  | 5.500%, 12/01/20 – SYNCORA GTY Insured | 12/14 at 100.00 | AA |  |  | 1,461,281 |
| 1,415 |  | 5.500%, 12/01/21 – SYNCORA GTY Insured | 12/14 at 100.00 | AA |  |  | 1,572,401 |
| 38,980 |  | Total Water and Sewer |  |  |  |  | 40,115,477 |
$ | 487,308 |  | Total Investments (cost $330,852,748) – 148.5% |  |  |  |  | 334,584,349 |
|  |  | Floating Rate Obligations – (3.3)% |  |  |  |  | (7,385,000 | )
|  |  | Variable Rate Demand Preferred Shares, at Liquidation Value – (46.3)% (6) |  |  |  |  | (104,400,000 | )
|  |  | Other Assets Less Liabilities – 1.1% |  |  |  |  | 2,516,791 |
|  |  | Net Assets Applicable to Common Shares – 100% |  |  |  | $ | 225,316,140 |

|  | The Fund intends to invest at least 80% of its managed assets in municipal securities that are covered by insurance guaranteeing the timely payment of principal and interest. See Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies, Insurance for more information.
(1) |  | All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted.
(2) |  | Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns.
(3) |  | Ratings: Using the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investor Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies.
(4) |  | Investment, or portion of investment, has been pledged to collaterize the net payment obligations for investments in inverse floating rate transactions.
(5) |  | Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities, which ensure the timely payment of principal and interest. Bonds backed by U.S. Government or agency securities are given an implied rating equal to the rating of such securities.
(6) |  | Variable Rate Demand Preferred Shares, at Liquidation Value as a percentage of Total Investments is 31.2%.
N/R |  | Not rated.
(IF) |  | Inverse floating rate investment.
(UB) |  | Underlying bond of an inverse floating rate trust reflected as a financing transaction. See Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies, Inverse Floating Rate Securities for more information.

See accompanying notes to financial statements.

62 |  | Nuveen Investments

|  | Nuveen Insured California Tax-Free Advantage Municipal Fund
NKX |  | Portfolio of Investments
|  | August 31, 2011 (Unaudited)

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

Nuveen Investments |  | 63

|  | Nuveen Insured California Tax-Free Advantage Municipal Fund (continued)
NKX |  | Portfolio of Investments

August 31, 2011 (Unaudited)

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

64 |  | Nuveen Investments

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

Nuveen Investments |  | 65

|  | Nuveen Insured California Tax-Free Advantage Municipal Fund (continued)
NKX |  | Portfolio of Investments
|  | August 31, 2011 (Unaudited)

| Principal |  |  | Optional Call |  |  |  |  |
| Amount (000) |  | Description (1) | Provisions (2) | Ratings (3) |  |  | Value |
|  |  | Water and Sewer (continued) |  |  |  |  |  |
$ | 170 |  | Marina Coast Water District, California, Enterprise Certificate of Participation, Series 2006, 5.000%, 6/01/31 – NPFG Insured | 6/16 at 100.00 | AA– |  | $ | 172,208 |
|  |  | San Diego Public Facilities Financing Authority, California, Subordinate Lien Water Revenue Bonds, Series 2002: |  |  |  |  |  |
| 3,000 |  | 5.000%, 8/01/22 – NPFG Insured | 8/12 at 100.00 | Aa3 |  |  | 3,093,900 |
| 2,500 |  | 5.000%, 8/01/23 – NPFG Insured | 8/12 at 100.00 | Aa3 |  |  | 2,575,000 |
| 1,180 |  | South Feather Water and Power Agency, California, Water Revenue Certificates of Participation, Solar Photovoltaic Project, Series 2003, 5.375%, 4/01/24 | 4/13 at 100.00 | A |  |  | 1,188,567 |
| 9,390 |  | Total Water and Sewer |  |  |  |  | 9,581,955 |
$ | 128,297 |  | Total Investments (cost $117,366,340) – 141.8% |  |  |  |  | 116,351,102 |
|  |  | Floating Rate Obligations – (4.1)% |  |  |  |  | (3,360,000 | )
|  |  | Variable Rate Demand Preferred Shares, at Liquidation Value – (43.3)% (6) |  |  |  |  | (35,500,000 | )
|  |  | Other Assets Less Liabilities – 5.6% |  |  |  |  | 4,567,786 |
|  |  | Net Assets Applicable to Common Shares – 100% |  |  |  | $ | 82,058,888 |

|  | The Fund intends to invest at least 80% of its managed assets in municipal securities that are covered by insurance guaranteeing the timely payment of principal and interest. See Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies, Insurance for more information.
(1) |  | All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted.
(2) |  | Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns.
(3) |  | Ratings: Using the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investor Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies.
(4) |  | Investment, or portion of investment, has been pledged to collaterize the net payment obligations for investments in inverse floating rate transactions.
(5) |  | Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities, which ensure the timely payment of principal and interest. Bonds backed by U.S. Government or agency securities are given an implied rating equal to the rating of such securities.
(6) |  | Variable Rate Demand Preferred Shares, at Liquidation Value as a percentage of Total Investments is 30.5%.
N/R |  | Not rated.
(IF) |  | Inverse floating rate investment.
(UB) |  | Underlying bond of an inverse floating rate trust reflected as a financing transaction. See Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies, Inverse Floating Rate Securities for more information.

See accompanying notes to financial statements.

66 |  | Nuveen Investments

|  | Statement of
|  | Assets & Liabilities
|  | August 31, 2011 (Unaudited)

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

See accompanying notes to financial statements.

Nuveen Investments |  | 67

|  | Statement of
|  | Assets & Liabilities (Unaudited) (continued)

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

See accompanying notes to financial statements.

68 |  | Nuveen Investments

|  | Statement of
|  | Operations
|  | Six Months Ended August 31, 2011 (Unaudited)

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

See accompanying notes to financial statements.

Nuveen Investments |  | 69

|  | Statement of
|  | Operations (continued)

Six Months Ended August 31, 2011 (Unaudited)

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

See accompanying notes to financial statements.

70 |  | Nuveen Investments

|  | Statement of
|  | Changes in Net Assets (Unaudited)

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

See accompanying notes to financial statements.

Nuveen Investments |  | 71

|  | Statement of
|  | Changes in Net Assets (Unaudited) (continued)

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

See accompanying notes to financial statements.

72 |  | Nuveen Investments

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

See accompanying notes to financial statements.

Nuveen Investments |  | 73

|  | Statement of
|  | Cash Flows
|  | Six Months Ended August 31, 2011 (Unaudited)

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

See accompanying notes to financial statements.

74 |  | Nuveen Investments

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

See accompanying notes to financial statements.

Nuveen Investments |  | 75

|  | Statement of
|  | Cash Flows (Unaudited) (continued)

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

|  |  | Insured California |  |  | Insured California |
|  |  | Dividend Advantage |  |  | Tax-Free Advantage |
|  |  | (NKL | ) |  | (NKX | )
|  | $ | 77,595 |  | $ | 70,443 |

See accompanying notes to financial statements.

76 |  | Nuveen Investments

|  | Financial
|  | Highlights (Unaudited)

Nuveen Investments |  | 77

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

|  |  |  |  |  | Investment Operations |  |  | Less Distributions |  |  |  |  |  |  |  |  |  |
|  |  | Beginning Common Share Net Asset Value |  |  | Net Investment Income (Loss) |  |  | Net Realized/ Unrealized Gain (Loss) |  |  | Distributions from Net Investment Income to Auction Rate Preferred Shareholders | (a) |  | Distributions from Capital Gains to Auction Rate Preferred Shareholders | (a) |  | Total |  |  | Net Investment Income to Common Share- holders |  |  | Capital Gains to Common Share- holders |  |  | Total |  |  | Discount from Common Shares Repurchased and Retired |  |  | Ending Common Share Net Asset Value |  |  | Ending Market Value |
Insured California Premium Income (NPC) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Year Ended 2/28–2/29: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2012(g) |  | $ | 13.63 |  | $ | .44 |  | $ | 1.33 |  | $ | — |  | $ | — |  | $ | 1.77 |  | $ | (.44 | ) | $ | — |  | $ | (.44 | ) | $ | — |  | $ | 14.96 |  | $ | 13.86 |
2011 |  |  | 14.74 |  |  | .88 |  |  | (1.10 | ) |  | — | ** |  | — |  |  | (.22 | ) |  | (.86 | ) |  | (.03 | ) |  | (.89 | ) |  | — |  |  | 13.63 |  |  | 13.26 |
2010 |  |  | 14.03 |  |  | .96 |  |  | .55 |  |  | (.03 | ) |  | (.02 | ) |  | 1.46 |  |  | (.75 | ) |  | — |  |  | (.75 | ) |  | — | ** |  | 14.74 |  |  | 13.30 |
2009(f) 14.93 |  |  | .47 |  |  | (.74 | ) |  | (.11 | ) |  | (.02 | ) |  | (.40 | ) |  | (.36 | ) |  | (.14 | ) |  | (.50 | ) |  | — | ** |  | 14.03 |  |  | 12.04 |
Year Ended 8/31: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2008 |  |  | 15.04 |  |  | .95 |  |  | (.10 | ) |  | (.22 | ) |  | — | ** |  | .63 |  |  | (.73 | ) |  | (.01 | ) |  | (.74 | ) |  | — |  |  | 14.93 |  |  | 13.89 |
2007 |  |  | 15.58 |  |  | .90 |  |  | (.40 | ) |  | (.21 | ) |  | (.02 | ) |  | .27 |  |  | (.73 | ) |  | (.08 | ) |  | (.81 | ) |  | — |  |  | 15.04 |  |  | 14.96 |
2006 |  |  | 16.21 |  |  | .92 |  |  | (.38 | ) |  | (.18 | ) |  | (.02 | ) |  | .34 |  |  | (.83 | ) |  | (.14 | ) |  | (.97 | ) |  | — |  |  | 15.58 |  |  | 15.08 |
Insured California Premium Income 2 (NCL) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Year Ended 2/28–2/29: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2012(g) |  |  | 13.06 |  |  | .44 |  |  | 1.19 |  |  | — |  |  | — |  |  | 1.63 |  |  | (.43 | ) |  | — |  |  | (.43 | ) |  | — |  |  | 14.26 |  |  | 13.64 |
2011 |  |  | 13.99 |  |  | .91 |  |  | (.96 | ) |  | (.02 | ) |  | — |  |  | (.07 | ) |  | (.86 | ) |  | — |  |  | (.86 | ) |  | — | ** |  | 13.06 |  |  | 12.45 |
2010 |  |  | 12.85 |  |  | .98 |  |  | .99 |  |  | (.03 | ) |  | (.02 | ) |  | 1.92 |  |  | (.78 | ) |  | — |  |  | (.78 | ) |  | — | ** |  | 13.99 |  |  | 12.72 |
2009(f) |  |  | 14.13 |  |  | .44 |  |  | (1.12 | ) |  | (.10 | ) |  | (.02 | ) |  | (.80 | ) |  | (.34 | ) |  | (.14 | ) |  | (.48 | ) |  | — | ** |  | 12.85 |  |  | 10.89 |
Year Ended 8/31: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2008 |  |  | 14.50 |  |  | .95 |  |  | (.44 | ) |  | (.24 | ) |  | — |  |  | .27 |  |  | (.64 | ) |  | — |  |  | (.64 | ) |  | — |  |  | 14.13 |  |  | 12.66 |
2007 |  |  | 14.99 |  |  | .89 |  |  | (.46 | ) |  | (.25 | ) |  | — |  |  | .18 |  |  | (.67 | ) |  | — |  |  | (.67 | ) |  | — |  |  | 14.50 |  |  | 13.71 |
2006 |  |  | 15.33 |  |  | .90 |  |  | (.28 | ) |  | (.20 | ) |  | — |  |  | .42 |  |  | (.76 | ) |  | — |  |  | (.76 | ) |  | — |  |  | 14.99 |  |  | 14.19 |

(a) | The amounts shown are based on Common share equivalents.
(b) | Total Return Based on Market Value is the combination of changes in the market price per share and the effect of reinvested dividend income and reinvested capital gains distributions, if any, at the average price paid per share at the time of reinvestment. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending market price. The actual reinvestment for the last dividend declared in the period may take place over several days, and in some instances may not be based on the market price, so the actual reinvestment price may be different from the price used in the calculation. Total returns are not annualized.
| Total Return Based on Common Share Net Asset Value is the combination of changes in Common share net asset value, reinvested dividend income at net asset value and reinvested capital gains distributions at net asset value, if any. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending net asset value. The actual reinvest price for the last dividend declared in the period may often be based on the Fund’s market price (and not its net asset value), and therefore may be different from the price used in the calculation. Total returns are not annualized.

78 |  | Nuveen Investments

|  |  |  |  |  |  | Ratios/Supplemental Data |
Total Returns |  |  |  |  |  | Ratios to Average Net Assets Applicable to Common Shares(c)(d) |  |  |  |
| Based on Market Value | (b) |  | Based on Common Share Net Asset Value | (b) |  | Ending Net Assets Applicable to Common Shares (000) |  |  | Expenses | (e) |  | Net Investment Income (Loss) |  |  | Portfolio Turnover Rate |
| 7.92 | % |  | 13.18 | % | $ | 96,374 |  |  | 1.83 | %* |  | 6.28 | %* |  | 8 | %
| 6.29 |  |  | (1.75 | ) |  | 87,827 |  |  | 1.77 |  |  | 6.03 |  |  | 6 |
| 17.13 |  |  | 10.66 |  |  | 94,944 |  |  | 1.19 |  |  | 6.68 |  |  | 10 |
| (9.25 | ) |  | (2.43 | ) |  | 90,531 |  |  | 1.27 | * |  | 6.88 | * |  | 1 |
| (2.21 | ) |  | 4.23 |  |  | 96,462 |  |  | 1.19 |  |  | 6.24 |  |  | 17 |
| 4.61 |  |  | 1.70 |  |  | 97,176 |  |  | 1.22 |  |  | 5.84 |  |  | 9 |
| 1.00 |  |  | 2.23 |  |  | 100,581 |  |  | 1.16 |  |  | 5.89 |  |  | 9 |
| 13.26 |  |  | 12.71 |  |  | 180,610 |  |  | 1.70 | * |  | 6.46 | * |  | 2 |
| 4.38 |  |  | (.72 | ) |  | 165,359 |  |  | 1.29 |  |  | 6.53 |  |  | 26 |
| 24.41 |  |  | 15.35 |  |  | 177,169 |  |  | 1.27 |  |  | 7.25 |  |  | 7 |
| (9.95 | ) |  | (5.40 | ) |  | 162,831 |  |  | 1.53 | * |  | 7.15 | * |  | 9 |
| (3.06 | ) |  | 1.86 |  |  | 179,734 |  |  | 1.23 |  |  | 6.56 |  |  | 12 |
| 1.26 |  |  | 1.18 |  |  | 184,343 |  |  | 1.24 |  |  | 6.00 |  |  | 19 |
| (.63 | ) |  | 2.91 |  |  | 190,571 |  |  | 1.20 |  |  | 6.05 |  |  | 14 |

(c) | Ratios do not reflect the effect of dividend payments to Auction Rate Preferred shareholders, where applicable; Net Investment Income (Loss) ratios reflect income earned and expenses incurred on assets attributable to ARPS and/or VRDP Shares, where applicable.
(d) | Ratios do not reflect the effect of custodian fee credits earned on the Fund’s net cash on deposit with the custodian bank, where applicable.
(e) | The expense ratios reflect, among other things, all interest expense and other costs related to VRDP Shares and/or the interest expense deemed to have been paid by the Fund on the floating rate certificates issued by the special purpose trusts for the self-deposited inverse floaters held by the Fund, where applicable, both as described in Footnote 1 – General Information and Significant Accounting Policies, Variable Rate Demand Preferred Shares and Inverse Floating Rate Securities, respectively as follows:

Insured California Premium Income (NPC) |  |  |  |
Year Ended 2/28–2/29: |  |  |  |
2012(g) |  |  | .73 | %*
2011 |  |  | .60 |
2010 |  |  | — |
2009(f) |  |  | — | *
Year Ended 8/31: |  |  |  |
2008 |  |  | — |
2007 |  |  | .06 |
2006 |  |  | — |

Insured California Premium Income 2 (NCL) |  |  |  |
Year Ended 2/28–2/29: |  |  |  |
2012(g) |  |  | .62 | *
2011 |  |  | .17 |
2010 |  |  | .09 |
2009(f) |  |  | .29 | *
Year Ended 8/31: |  |  |  |
2008 |  |  | .02 |
2007 |  |  | .06 |
2006 |  |  | — |

(f) | For the six months ended February 28, 2009.
(g) | For the six months ended August 31, 2011.
* | Annualized.
** | Rounds to less than $.01 per share.

See accompanying notes to financial statements.

Nuveen Investments |  | 79

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

|  |  |  |  |  | Investment Operations |  |  | Less Distributions |  |  |  |  |  |  |  |  |  |
|  |  | Beginning Common Share Net Asset Value |  |  | Net Investment Income (Loss) |  |  | Net Realized/ Unrealized Gain (Loss) |  |  | Distributions from Net Investment Income to Auction Rate Preferred Shareholders | (a) |  | Distributions from Capital Gains to Auction Rate Preferred Shareholders | (a) |  | Total |  |  | Net Investment Income to Common Share- holders |  |  | Capital Gains to Common Share- holders |  |  | Total |  |  | Discount from Common Shares Repurchased and Retired |  |  | Ending Common Share Net Asset Value |  |  | Ending Market Value |
California Premium Income (NCU) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Year Ended 2/28–2/29: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2012(g) |  | $ | 12.96 |  | $ | .42 |  | $ | 1.11 |  | $ | — |  | $ | — |  | $ | 1.53 |  | $ | (.44 | ) | $ | — |  | $ | (.44 | ) | $ | — |  | $ | 14.05 |  | $ | 12.94 |
2011 |  |  | 13.71 |  |  | .92 |  |  | (.79 | ) |  | (.02 | ) |  | — |  |  | .11 |  |  | (.86 | ) |  | — |  |  | (.86 | ) |  | — | ** |  | 12.96 |  |  | 12.28 |
2010 |  |  | 12.37 |  |  | .95 |  |  | 1.13 |  |  | (.03 | ) |  | — |  |  | 2.05 |  |  | (.72 | ) |  | — |  |  | (.72 | ) |  | .01 |  |  | 13.71 |  |  | 12.11 |
2009(f) |  |  | 13.67 |  |  | .43 |  |  | (1.29 | ) |  | (.10 | ) |  | — | ** |  | (.96 | ) |  | (.33 | ) |  | (.01 | ) |  | (.34 | ) |  | — | ** |  | 12.37 |  |  | 10.06 |
Year Ended 8/31: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2008 |  |  | 14.06 |  |  | .92 |  |  | (.43 | ) |  | (.24 | ) |  | — |  |  | .25 |  |  | (.64 | ) |  | — |  |  | (.64 | ) |  | — |  |  | 13.67 |  |  | 12.58 |
2007 |  |  | 14.63 |  |  | .90 |  |  | (.52 | ) |  | (.24 | ) |  | (.01 | ) |  | .13 |  |  | (.67 | ) |  | (.03 | ) |  | (.70 | ) |  | — |  |  | 14.06 |  |  | 13.03 |
2006 |  |  | 15.03 |  |  | .89 |  |  | (.30 | ) |  | (.21 | ) |  | — |  |  | .38 |  |  | (.77 | ) |  | (.01 | ) |  | (.78 | ) |  | — |  |  | 14.63 |  |  | 14.01 |
California Dividend Advantage (NAC) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Year Ended 2/28–2/29: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2012(g) |  |  | 12.68 |  |  | .49 |  |  | 1.10 |  |  | (.01 | ) |  | — |  |  | 1.58 |  |  | (.45 | ) |  | — |  |  | (.45 | ) |  | — |  |  | 13.81 |  |  | 13.41 |
2011 |  |  | 13.88 |  |  | .98 |  |  | (1.27 | ) |  | (.02 | ) |  | — |  |  | (.31 | ) |  | (.89 | ) |  | — |  |  | (.89 | ) |  | — |  |  | 12.68 |  |  | 12.20 |
2010 |  |  | 12.10 |  |  | 1.01 |  |  | 1.63 |  |  | (.03 | ) |  | (.02 | ) |  | 2.59 |  |  | (.81 | ) |  | — |  |  | (.81 | ) |  | — |  |  | 13.88 |  |  | 12.60 |
2009(f) |  |  | 14.43 |  |  | .49 |  |  | (2.07 | ) |  | (.09 | ) |  | (.02 | ) |  | (1.69 | ) |  | (.38 | ) |  | (.26 | ) |  | (.64 | ) |  | — |  |  | 12.10 |  |  | 10.82 |
Year Ended 8/31: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2008 |  |  | 14.93 |  |  | 1.02 |  |  | (.50 | ) |  | (.23 | ) |  | (.01 | ) |  | .28 |  |  | (.74 | ) |  | (.04 | ) |  | (.78 | ) |  | — |  |  | 14.43 |  |  | 13.44 |
2007 |  |  | 15.59 |  |  | 1.00 |  |  | (.56 | ) |  | (.24 | ) |  | (.01 | ) |  | .19 |  |  | (.80 | ) |  | (.05 | ) |  | (.85 | ) |  | — |  |  | 14.93 |  |  | 14.34 |
2006 |  |  | 15.98 |  |  | 1.01 |  |  | (.25 | ) |  | (.21 | ) |  | — |  |  | .55 |  |  | (.91 | ) |  | (.03 | ) |  | (.94 | ) |  | — |  |  | 15.59 |  |  | 15.97 |

(a) | The amounts shown are based on Common share equivalents.
(b) | Total Return Based on Market Value is the combination of changes in the market price per share and the effect of reinvested dividend income and reinvested capital gains distributions, if any, at the average price paid per share at the time of reinvestment. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending market price. The actual reinvestment for the last dividend declared in the period may take place over several days, and in some instances may not be based on the market price, so the actual reinvestment price may be different from the price used in the calculation. Total returns are not annualized.
| Total Return Based on Common Share Net Asset Value is the combination of changes in Common share net asset value, reinvested dividend income at net asset value and reinvested capital gains distributions at net asset value, if any. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending net asset value. The actual reinvest price for the last dividend declared in the period may often be based on the Fund’s market price (and not its net asset value), and therefore may be different from the price used in the calculation. Total returns are not annualized.

80 |  | Nuveen Investments

|  |  |  |  |  |  |  |  | Ratios/Supplemental Data |
Total Returns |  |  |  |  |  | Ratios to Average Net Assets Applicable to Common Shares Before Reimbursement(c) |  |  | Ratios to Average Net Assets Applicable to Common Shares After Reimbursement(c)(d) |  |  |
|  |  | Based on Market Value | (b) |  | Based on Common Share Net Asset Value | (b) |  | Ending Net Assets Applicable to Common Shares (000) |  |  | Expenses | (e) |  | Net Investment Income (Loss) |  |  | Expenses | (e) |  | Net Investment Income (Loss) |  |  | Portfolio Turnover Rate |
|  |  | 9.05 | % |  | 11.96 | % | $ | 80,499 |  |  | 2.38 | %* |  | 6.17 | %* |  | N/A |  |  | N/A |  |  | 7 | %
|  |  | 8.34 |  |  | .63 |  |  | 74,275 |  |  | 1.69 |  |  | 6.66 |  |  | N/A |  |  | N/A |  |  | 5 |
|  |  | 28.13 |  |  | 17.06 |  |  | 78,581 |  |  | 1.30 |  |  | 7.18 |  |  | N/A |  |  | N/A |  |  | 10 |
|  |  | (17.22 | ) |  | (6.92 | ) |  | 71,260 |  |  | 1.57 | * |  | 7.06 | * |  | N/A |  |  | N/A |  |  | 14 |
|  |  | 1.51 |  |  | 1.81 |  |  | 78,966 |  |  | 1.34 |  |  | 6.56 |  |  | N/A |  |  | N/A |  |  | 5 |
|  |  | (2.21 | ) |  | .82 |  |  | 81,200 |  |  | 1.29 |  |  | 6.14 |  |  | N/A |  |  | N/A |  |  | 11 |
|  |  | 3.14 |  |  | 2.72 |  |  | 84,467 |  |  | 1.23 |  |  | 6.09 |  |  | N/A |  |  | N/A |  |  | 20 |
|  |  | 13.86 |  |  | 12.66 |  |  | 324,204 |  |  | 1.36 | * |  | 7.35 | * |  | N/A |  |  | N/A |  |  | 7 |
|  |  | 3.54 |  |  | (2.57 | ) |  | 297,629 |  |  | 1.18 |  |  | 7.18 |  |  | N/A |  |  | N/A |  |  | 20 |
|  |  | 24.62 |  |  | 21.97 |  |  | 325,791 |  |  | 1.21 |  |  | 7.63 |  |  | 1.18 | % |  | 7.66 | % |  | 4 |
|  |  | (14.14 | ) |  | (11.45 | ) |  | 284,221 |  |  | 1.31 | * |  | 7.92 | * |  | 1.24 | * |  | 7.99 | * |  | 14 |
|  |  | (.84 | ) |  | 1.85 |  |  | 338,732 |  |  | 1.26 |  |  | 6.77 |  |  | 1.11 |  |  | 6.92 |  |  | 19 |
|  |  | (5.19 | ) |  | 1.16 |  |  | 350,523 |  |  | 1.17 |  |  | 6.24 |  |  | .95 |  |  | 6.46 |  |  | 20 |
|  |  | 5.47 |  |  | 3.63 |  |  | 365,516 |  |  | 1.13 |  |  | 6.22 |  |  | .84 |  |  | 6.50 |  |  | 13 |

(c) | Ratios do not reflect the effect of dividend payments to Auction Rate Preferred shareholders, where applicable; Net Investment Income (Loss) ratios reflect income earned and expenses incurred on assets attributable to ARPS, MTP Shares and/or VRDP Shares, where applicable.
(d) | After expense reimbursement from the Adviser, where applicable. Ratios do not reflect the effect of custodian fee credits earned on the Fund’s net cash on deposit with the custodian bank, where applicable. As of July 31, 2009, the Adviser is no longer reimbursing California Dividend Advantage (NAC) for any fees or expenses.
(e) | The expense ratios reflect, among other things, all interest expense and other costs related to VRDP Shares, MTP Shares and/or the interest expense deemed to have been paid by the Fund on the floating rate certificates issued by the special purpose trusts for the self-deposited inverse floaters held by the Fund, where applicable, each as described in Footnote 1 – General Information and Significant Accounting Policies, Variable Rate Demand Preferred Shares, MuniFund Term Preferred Shares and Inverse
| Floating Rate Securities, respectively as follows:

California Premium Income (NCU) |  |  |  |
Year Ended 2/28–2/29: |  |  |  |
2012(g) |  |  | 1.18 | %*
2011 |  |  | .55 |
2010 |  |  | .06 |
2009(f) |  |  | .20 | *
Year Ended 8/31: |  |  |  |
2008 |  |  | .11 |
2007 |  |  | .08 |
2006 |  |  | — |
California Dividend Advantage (NAC) |  |  |  |
Year Ended 2/28–2/29: |  |  |  |
2012(g) |  |  | .28 | *
2011 |  |  | .06 |
2010 |  |  | .08 |
2009(f) |  |  | .14 | *
Year Ended 8/31: |  |  |  |
2008 |  |  | .11 |
2007 |  |  | .05 |
2006 |  |  | — |

(f) | For the six months ended February 28, 2009.
(g) | For the six months ended August 31, 2011.
* | Annualized.
** | Rounds to less than $.01 per share.
N/A | Fund does not have a contractual reimbursement agreement with the Adviser.

See accompanying notes to financial statements.

Nuveen Investments |  | 81

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

|  |  |  |  |  | Investment Operations |  |  | Less Distributions |  |  |  |  |  |  |  |  |  |
|  |  | Beginning Common Share Net Asset Value |  |  | Net Investment Income (Loss) |  |  | Net Realized/ Unrealized Gain (Loss) |  |  | Distributions from Net Investment Income to Auction Rate Preferred Shareholders | (a) |  | Distributions from Capital Gains to Auction Rate Preferred Shareholders | (a) |  | Total |  |  | Net Investment Income to Common Share- holders |  |  | Capital Gains to Common Share- holders |  |  | Total |  |  | Discount from Common Shares Repurchased and Retired |  |  | Ending Common Share Net Asset Value |  |  | Ending Market Value |
California Dividend Advantage 2 (NVX) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Year Ended 2/28–2/29: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2012(g) |  | $ | 13.47 |  | $ | .46 |  | $ | .95 |  | $ | — | ** | $ | — |  | $ | 1.41 |  | $ | (.48 | ) | $ | — |  | $ | (.48 | ) | $ | — |  | $ | 14.40 |  | $ | 13.89 |
2011 |  |  | 14.49 |  |  | 1.03 |  |  | (1.07 | ) |  | (.02 | ) |  | — |  |  | (.06 | ) |  | (.96 | ) |  | — |  |  | (.96 | ) |  | — |  |  | 13.47 |  |  | 12.83 |
2010 |  |  | 12.91 |  |  | 1.07 |  |  | 1.43 |  |  | (.04 | ) |  | — |  |  | 2.46 |  |  | (.88 | ) |  | — |  |  | (.88 | ) |  | — | ** |  | 14.49 |  |  | 13.56 |
2009(f) |  |  | 14.39 |  |  | .51 |  |  | (1.47 | ) |  | (.11 | ) |  | (.01 | ) |  | (1.08 | ) |  | (.36 | ) |  | (.04 | ) |  | (.40 | ) |  | — | ** |  | 12.91 |  |  | 10.51 |
Year Ended 8/31: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2008 |  |  | 14.69 |  |  | 1.01 |  |  | (.37 | ) |  | (.25 | ) |  | — |  |  | .39 |  |  | (.69 | ) |  | — |  |  | (.69 | ) |  | — |  |  | 14.39 |  |  | 12.67 |
2007 |  |  | 15.36 |  |  | .96 |  |  | (.62 | ) |  | (.25 | ) |  | — |  |  | .09 |  |  | (.76 | ) |  | — |  |  | (.76 | ) |  | — |  |  | 14.69 |  |  | 13.73 |
2006 |  |  | 15.63 |  |  | .97 |  |  | (.19 | ) |  | (.21 | ) |  | — |  |  | .57 |  |  | (.84 | ) |  | — |  |  | (.84 | ) |  | — |  |  | 15.36 |  |  | 14.95 |
California Dividend Advantage 3 (NZH) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Year Ended 2/28–2/29: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2012(g) |  |  | 12.13 |  |  | .41 |  |  | .86 |  |  | — | ** |  | — |  |  | 1.27 |  |  | (.45 | ) |  | — |  |  | (.45 | ) |  | — |  |  | 12.95 |  |  | 12.49 |
2011 |  |  | 13.18 |  |  | .88 |  |  | (1.02 | ) |  | (.01 | ) |  | — |  |  | (.15 | ) |  | (.90 | ) |  | — |  |  | (.90 | ) |  | — |  |  | 12.13 |  |  | 11.67 |
2010 |  |  | 11.53 |  |  | .98 |  |  | 1.53 |  |  | (.03 | ) |  | — |  |  | 2.48 |  |  | (.83 | ) |  | — |  |  | (.83 | ) |  | — |  |  | 13.18 |  |  | 12.67 |
2009(f) |  |  | 13.62 |  |  | .50 |  |  | (2.13 | ) |  | (.09 | ) |  | — |  |  | (1.72 | ) |  | (.37 | ) |  | — |  |  | (.37 | ) |  | — | ** |  | 11.53 |  |  | 10.23 |
Year Ended 8/31: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2008 |  |  | 14.25 |  |  | 1.03 |  |  | (.70 | ) |  | (.25 | ) |  | — |  |  | .08 |  |  | (.71 | ) |  | — |  |  | (.71 | ) |  | — |  |  | 13.62 |  |  | 12.87 |
2007 |  |  | 15.03 |  |  | .98 |  |  | (.73 | ) |  | (.27 | ) |  | — |  |  | (.02 | ) |  | (.76 | ) |  | — |  |  | (.76 | ) |  | — |  |  | 14.25 |  |  | 13.52 |
2006 |  |  | 15.31 |  |  | .97 |  |  | (.20 | ) |  | (.22 | ) |  | — |  |  | .55 |  |  | (.83 | ) |  | — |  |  | (.83 | ) |  | — |  |  | 15.03 |  |  | 14.84 |

(a) | The amounts shown are based on Common share equivalents.
(b) | Total Return Based on Market Value is the combination of changes in the market price per share and the effect of reinvested dividend income and reinvested capital gains distributions, if any, at the average price paid per share at the time of reinvestment. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending market price. The actual reinvestment for the last dividend declared in the period may take place over several days, and in some instances may not be based on the market price, so the actual reinvestment price may be different from the price used in the calculation. Total returns are not annualized.
| Total Return Based on Common Share Net Asset Value is the combination of changes in Common share net asset value, reinvested dividend income at net asset value and reinvested capital gains distributions at net asset value, if any. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending net asset value. The actual reinvest price for the last dividend declared in the period may often be based on the Fund’s market price (and not its net asset value), and therefore may be different from the price used in the calculation. Total returns are not annualized.

82 |  | Nuveen Investments

|  |  |  |  |  |  |  |  | Ratios/Supplemental Data |
Total Returns |  |  |  |  |  | Ratios to Average Net Assets Applicable to Common Shares Before Reimbursement(c) |  |  | Ratios to Average Net Assets Applicable to Common Shares After Reimbursement(c)(d) |  |  |  |
|  |  | Based on Market Value | (b) |  | Based on Common Share Net Asset Value | (b) |  | Ending Net Assets Applicable to Common Shares (000 | ) |  | Expenses | (e) |  | Net Investment Income (Loss) |  |  | Expenses | (e) |  | Net Investment Income (Loss | ) |  | Portfolio Turnover Rate |
|  |  | 12.16 | % |  | 10.65 | % | $ | 212,375 |  |  | 2.31 | %* |  | 6.52 | %* |  | 2.30 | %* |  | 6.53 | %* |  | 4 | %
|  |  | 1.37 |  |  | (.64 | ) |  | 198,675 |  |  | 1.36 |  |  | 7.10 |  |  | 1.28 |  |  | 7.19 |  |  | 13 |
|  |  | 38.29 |  |  | 19.52 |  |  | 213,687 |  |  | 1.20 |  |  | 7.58 |  |  | 1.04 |  |  | 7.74 |  |  | 4 |
|  |  | (13.83 | ) |  | (7.40 | ) |  | 190,824 |  |  | 1.37 | * |  | 7.85 | * |  | 1.14 | * |  | 8.08 | * |  | 7 |
|  |  | (2.80 | ) |  | 2.76 |  |  | 212,890 |  |  | 1.25 |  |  | 6.56 |  |  | .99 |  |  | 6.83 |  |  | 20 |
|  |  | (3.39 | ) |  | .46 |  |  | 217,332 |  |  | 1.25 |  |  | 5.97 |  |  | .91 |  |  | 6.31 |  |  | 21 |
|  |  | 4.19 |  |  | 3.82 |  |  | 227,160 |  |  | 1.16 |  |  | 5.94 |  |  | .74 |  |  | 6.35 |  |  | 9 |
|  |  | 11.04 |  |  | 10.65 |  |  | 312,425 |  |  | 2.50 | * |  | 6.51 |  |  | 2.42 | * |  | 6.59 |  |  | 7 |
|  |  | (1.21 | ) |  | (1.40 | ) |  | 292,563 |  |  | 2.07 |  |  | 6.61 |  |  | 1.94 |  |  | 6.74 |  |  | 16 |
|  |  | 32.93 |  |  | 22.17 |  |  | 317,860 |  |  | 1.36 |  |  | 7.68 |  |  | 1.16 |  |  | 7.88 |  |  | 6 |
|  |  | (17.58 | ) |  | (12.54 | ) |  | 278,056 |  |  | 1.39 | * |  | 8.50 | * |  | 1.13 | * |  | 8.75 | * |  | 9 |
|  |  | .46 |  |  | .60 |  |  | 328,659 |  |  | 1.21 |  |  | 6.96 |  |  | .90 |  |  | 7.27 |  |  | 23 |
|  |  | (4.12 | ) |  | (.32 | ) |  | 343,806 |  |  | 1.22 |  |  | 6.16 |  |  | .83 |  |  | 6.54 |  |  | 23 |
|  |  | 8.50 |  |  | 3.81 |  |  | 362,473 |  |  | 1.16 |  |  | 6.08 |  |  | .71 |  |  | 6.53 |  |  | 10 |

(c) | Ratios do not reflect the effect of dividend payments to Auction Rate Preferred shareholders, where applicable; Net Investment Income (Loss) ratios reflect income earned and expenses incurred on assets attributable to ARPS and/or MTP Shares, where applicable.
(d) | After expense reimbursement from the Adviser, where applicable. Ratios do not reflect the effect of custodian fee credits earned on the Fund’s net cash on deposit with the custodian bank, where applicable. As of March 31, 2011, the Adviser is no longer reimbursing California Dividend Advantage 2 (NVX) for any fees or expenses.
(e) | The expense ratios reflect, among other things, all interest expense and other costs related to MTP Shares and/or the interest expense deemed to have been paid by the Fund on the floating rate certificates issued by the special purpose trusts for the self-deposited inverse floaters held by the Fund, where applicable, both as described in Footnote 1 – General Information and Significant Accounting Polices, MuniFund Term Preferred Shares and Inverse Floating Rate Securities, respectively as follows:

California Dividend Advantage 2 (NVX) |  |  |  |
Year Ended 2/28–2/29: |  |  |  |
2012(g) |  |  | 1.24 | %*
2011 |  |  | .26 |
2010 |  |  | .04 |
2009(f) |  |  | .05 | *
Year Ended 8/31: |  |  |  |
2008 |  |  | .09 |
2007 |  |  | .08 |
2006 |  |  | — |
California Dividend Advantage 3 (NZH) |  |  |  |
Year Ended 2/28–2/29: |  |  |  |
2012(g) |  |  | 1.38 | *
2011 |  |  | .94 |
2010 |  |  | .19 |
2009(f) |  |  | .12 | *
Year Ended 8/31: |  |  |  |
2008 |  |  | .02 |
2007 |  |  | .06 |
2006 |  |  | — |

(f) | For the six months ended February 28, 2009.
(g) | For the six months ended August 31, 2011.
* | Annualized.
** | Rounds to less than $.01 per share.

See accompanying notes to financial statements.

Nuveen Investments |  | 83

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

|  |  |  |  |  | Investment Operations |  |  | Less Distributions |  |  |  |  |  |  |  |  |  |
|  |  | Beginning Common Share Net Asset Value |  |  | Net Investment Income (Loss) |  |  | Net Realized/ Unrealized Gain (Loss) |  |  | Distributions from Net Investment Income to Auction Rate Preferred Shareholders | (a) |  | Distributions from Capital Gains to Auction Rate Preferred Shareholders | (a) |  | Total |  |  | Net Investment Income to Common Share- holders |  |  | Capital Gains to Common Share- holders |  |  | Total |  |  | Discount from Common Shares Repurchased and Retired |  |  | Ending Common Share Net Asset Value |  |  | Ending Market Value |
Insured California Dividend Advantage (NKL) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Year Ended 2/28–2/29: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2012(g) |  | $ | 13.70 |  | $ | .51 |  | $ | 1.04 |  | $ | (.01 | ) | $ | — |  | $ | 1.54 |  | $ | (.47 | ) | $ | — |  | $ | (.47 | ) | $ | — |  | $ | 14.77 |  | $ | 14.54 |
2011 |  |  | 14.71 |  |  | 1.04 |  |  | (1.09 | ) |  | (.03 | ) |  | — |  |  | (.08 | ) |  | (.93 | ) |  | — |  |  | (.93 | ) |  | — |  |  | 13.70 |  |  | 13.02 |
2010 |  |  | 13.52 |  |  | 1.06 |  |  | 1.01 |  |  | (.04 | ) |  | — |  |  | 2.03 |  |  | (.84 | ) |  | — |  |  | (.84 | ) |  | — | ** |  | 14.71 |  |  | 13.66 |
2009(f) |  |  | 14.61 |  |  | .50 |  |  | (1.07 | ) |  | (.10 | ) |  | (.01 | ) |  | (.68 | ) |  | (.37 | ) |  | (.04 | ) |  | (.41 | ) |  | — | ** |  | 13.52 |  |  | 11.16 |
Year Ended 8/31: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2008 |  |  | 14.91 |  |  | 1.03 |  |  | (.33 | ) |  | (.25 | ) |  | (.01 | ) |  | .44 |  |  | (.72 | ) |  | (.02 | ) |  | (.74 | ) |  | — |  |  | 14.61 |  |  | 13.50 |
2007 |  |  | 15.50 |  |  | 1.01 |  |  | (.57 | ) |  | (.26 | ) |  | — | ** |  | .18 |  |  | (.77 | ) |  | — | ** |  | (.77 | ) |  | — |  |  | 14.91 |  |  | 14.24 |
2006 |  |  | 15.81 |  |  | 1.01 |  |  | (.25 | ) |  | (.22 | ) |  | — |  |  | .54 |  |  | (.85 | ) |  | — |  |  | (.85 | ) |  | — |  |  | 15.50 |  |  | 15.70 |
Insured California Tax-Free Advantage (NKX) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Year Ended 2/28–2/29: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2012(g) |  |  | 12.82 |  |  | .43 |  |  | 1.09 |  |  | — |  |  | — |  |  | 1.52 |  |  | (.40 | ) |  | — |  |  | (.40 | ) |  | — |  |  | 13.94 |  |  | 12.88 |
2011 |  |  | 14.03 |  |  | .81 |  |  | (1.22 | ) |  | — |  |  | — |  |  | (.41 | ) |  | (.80 | ) |  | — |  |  | (.80 | ) |  | — |  |  | 12.82 |  |  | 11.78 |
2010 |  |  | 12.85 |  |  | .85 |  |  | 1.09 |  |  | — |  |  | — |  |  | 1.94 |  |  | (.76 | ) |  | — |  |  | (.76 | ) |  | — |  |  | 14.03 |  |  | 12.87 |
2009(f) |  |  | 14.19 |  |  | .39 |  |  | (1.32 | ) |  | — | ** |  | (.01 | ) |  | (.94 | ) |  | (.35 | ) |  | (.05 | ) |  | (.40 | ) |  | — |  |  | 12.85 |  |  | 11.75 |
Year Ended 8/31: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2008 |  |  | 14.47 |  |  | .97 |  |  | (.30 | ) |  | (.24 | ) |  | — |  |  | .43 |  |  | (.71 | ) |  | — |  |  | (.71 | ) |  | — |  |  | 14.19 |  |  | 13.78 |
2007 |  |  | 14.92 |  |  | .96 |  |  | (.46 | ) |  | (.24 | ) |  | — |  |  | .26 |  |  | (.71 | ) |  | — |  |  | (.71 | ) |  | — |  |  | 14.47 |  |  | 14.47 |
2006 |  |  | 15.17 |  |  | .95 |  |  | (.25 | ) |  | (.21 | ) |  | — |  |  | .49 |  |  | (.74 | ) |  | — |  |  | (.74 | ) |  | — |  |  | 14.92 |  |  | 14.27 |

(a) | The amounts shown are based on Common share equivalents.
(b) | Total Return Based on Market Value is the combination of changes in the market price per share and the effect of reinvested dividend income and reinvested capital gains distributions, if any, at the average price paid per share at the time of reinvestment. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending market price. The actual reinvestment for the last dividend declared in the period may take place over several days, and in some instances may not be based on the market price, so the actual reinvestment price may be different from the price used in the calculation. Total returns are not annualized.
| Total Return Based on Common Share Net Asset Value is the combination of changes in Common share net asset value, reinvested dividend income at net asset value and reinvested capital gains distributions at net asset value, if any. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending net asset value. The actual reinvest price for the last dividend declared in the period may often be based on the Fund’s market price (and not its net asset value), and therefore may be different from the price used in the calculation. Total returns are not annualized.

84 |  | Nuveen Investments

|  |  |  |  |  |  |  |  | Ratios/Supplemental Data |
Total Returns |  |  |  |  | Ratios to Average Net Assets Applicable to Common Shares Before Reimbursement(c) |  | Ratios to Average Net Assets Applicable to Common Shares After Reimbursement(c)(d) |  |  |  |
|  |  | Based on Market Value | (b) |  | Based on Common Share Net Asset Value | (b) |  | Ending Net Assets Applicable to Common Shares (000) |  |  | Expenses | (e) |  | Net Investment Income (Loss) |  |  | Expenses | (e) |  | Net Investment Income (Loss) |  |  | Portfolio Turnover Rate |
|  |  | 15.54 | % |  | 11.44 | % | $ | 225,316 |  |  | 1.33 | %* |  | 7.12 | %* |  | 1.24 | %* |  | 7.21 | %* |  | 8 | %
|  |  | 1.81 |  |  | (.75 | ) |  | 208,950 |  |  | 1.13 |  |  | 6.94 |  |  | .97 |  |  | 7.10 |  |  | 7 |
|  |  | 30.55 |  |  | 15.42 |  |  | 224,301 |  |  | 1.19 |  |  | 7.21 |  |  | .95 |  |  | 7.45 |  |  | 1 |
|  |  | (14.22 | ) |  | (4.50 | ) |  | 206,467 |  |  | 1.32 | * |  | 7.36 | * |  | 1.01 | * |  | 7.67 | * |  | 3 |
|  |  | (.03 | ) |  | 2.98 |  |  | 223,356 |  |  | 1.19 |  |  | 6.52 |  |  | .84 |  |  | 6.87 |  |  | 6 |
|  |  | (4.64 | ) |  | 1.13 |  |  | 227,923 |  |  | 1.21 |  |  | 6.12 |  |  | .79 |  |  | 6.54 |  |  | 12 |
|  |  | 10.72 |  |  | 3.62 |  |  | 236,525 |  |  | 1.17 |  |  | 6.12 |  |  | .71 |  |  | 6.58 |  |  | 3 |
|  |  | 12.95 |  |  | 12.05 |  |  | 82,059 |  |  | 1.82 | * |  | 6.36 |  |  | N/A |  |  | N/A |  |  | 1 |
|  |  | (2.71 | ) |  | (3.18 | ) |  | 75,493 |  |  | 2.06 |  |  | 5.74 |  |  | 1.97 |  |  | 5.83 |  |  | 8 |
|  |  | 16.39 |  |  | 15.49 |  |  | 82,579 |  |  | 1.68 |  |  | 6.11 |  |  | 1.47 |  |  | 6.32 |  |  | — | ***
|  |  | (11.55 | ) |  | (6.42 | ) |  | 75,661 |  |  | 2.57 | * |  | 5.89 | * |  | 2.27 | * |  | 6.19 | * |  | 3 |
|  |  | .12 |  |  | 2.97 |  |  | 83,531 |  |  | 1.33 |  |  | 6.28 |  |  | .94 |  |  | 6.67 |  |  | 28 |
|  |  | 6.35 |  |  | 1.69 |  |  | 85,144 |  |  | 1.27 |  |  | 5.95 |  |  | .79 |  |  | 6.43 |  |  | 15 |
|  |  | 4.56 |  |  | 3.43 |  |  | 87,77 |  |  | 1.22 |  |  | 5.97 |  |  | .74 |  |  | 6.45 |  |  | 4 |

(c) | Ratios do not reflect the effect of dividend payments to Auction Rate Preferred shareholders, where applicable; Net Investment Income (Loss) ratios reflect income earned and expenses incurred on assets attributable to ARPS and/or VRDP Shares, where applicable.
(d) | After expense reimbursement from the Adviser, where applicable. Ratios do not reflect the effect of custodian fee credits earned on the Fund’s net cash on deposit with the custodian bank, where applicable. As of November 30, 2010, the Adviser is no longer reimbursing Insured California Tax-Free Advantage (NKX) for any fees or expenses.
(e) | The expense ratios reflect, among other things, all interest expense and other costs related to VRDP Shares and/or the interest expense deemed to have been paid by the Fund on the floating rate certificates issued by the special purpose trusts for the self-deposited inverse floaters held by the Fund, where applicable, both as described in Footnote 1 – General Information and Significant Accounting Policies, Variable Rate Demand Preferred Shares and Inverse Floating Rate Securities, respectively as follows:

Insured California Dividend Advantage (NKL) |  |  |  |
Year Ended 2/28–2/29: |  |  |  |
2012(g) |  |  | .26 | %*
2011 |  |  | .02 |
2010 |  |  | .03 |
2009(f) |  |  | .09 | *
Year Ended 8/31: |  |  |  |
2008 |  |  | — |
2007 |  |  | .05 |
2006 |  |  | — |
Insured California Tax-Free Advantage (NKX) |  |  |  |
Year Ended 2/28–2/29: |  |  |  |
2012(g) |  |  | .72 | *
2011 |  |  | .92 |
2010 |  |  | .57 |
2009(f) |  |  | 1.03 | *
Year Ended 8/31: |  |  |  |
2008 |  |  | .08 |
2007 |  |  | .06 |
2006 |  |  | — |

(f) | For the six months ended February 28, 2009.
(g) | For the six months ended August 31, 2011.
* | Annualized.
** | Rounds to less than $.01 per share.
*** | Calculates to less than 1%.
N/A | Fund does not have a contractual reimbursement agreement with the Adviser.

|  | See accompanying notes to financial statements.

Nuveen Investments |  | 85

|  | Financial
|  | Highlights (Unaudited) (continued)

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

86 |  | Nuveen Investments

|  |  | ARPS at the End of Period |  |  | VRDP Shares at the End of Period |  |  | MTP Shares at the End of Period (h) |
|  |  | Aggregate Amount Outstanding (000) |  |  | Liquidation Value Per Share |  |  | Asset Coverage Per Share |  |  | Aggregate Amount Outstanding (000 | ) |  | Liquidation Value Per Share |  |  | Asset Coverage Per Share |  |  | Aggregate Amount Outstanding(000 | ) |  | Liquidation Value Per Share |  |  | Asset Coverage Per Share |
California Premium Income (NCU) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Year Ended 2/28–2/29: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2012(g) |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | 35,250 |  | $ | 10.00 |  | $ | 32.84 |
2011 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 35,250 |  |  | 10.00 |  |  | 31.07 |
2010 |  |  | 34,375 |  |  | 25,000 |  |  | 82,150 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
2009(f) |  |  | 40,875 |  |  | 25,000 |  |  | 68,584 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Year Ended 8/31: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2008 |  |  | 43,000 |  |  | 25,000 |  |  | 70,910 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
2007 |  |  | 43,000 |  |  | 25,000 |  |  | 72,209 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
2006 |  |  | 43,000 |  |  | 25,000 |  |  | 74,109 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
California Dividend Advantage (NAC) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Year Ended 2/28–2/29: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2012(g) |  |  | — |  |  | — |  |  | — |  |  | 136,200,000 |  |  | 100,000 |  |  | 338,035 |  |  | — |  |  | — |  |  | — |
2011 |  |  | 135,525 |  |  | 25,000 |  |  | 79,903 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
2010 |  |  | 135,525 |  |  | 25,000 |  |  | 85,098 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
2009(f) |  |  | 135,525 |  |  | 25,000 |  |  | 77,430 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Year Ended 8/31: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2008 |  |  | 135,525 |  |  | 25,000 |  |  | 87,485 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
2007 |  |  | 175,000 |  |  | 25,000 |  |  | 75,075 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
2006 |  |  | 175,000 |  |  | 25,000 |  |  | 77,217 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |

(f) | For the six months ended February 28, 2009.
(g) | For the six months ended August 31, 2011.
(h) | The Ending and Average Market Value Per Share for each Series of the Fund’s MTP Shares were as follows:

|  | Series |  |  | Ending Market Value Per Share |  |  | Average Market Value Per Share |
California Premium Income (NCU) |  |  |  |  |  |  |  |  |
Year Ended 2/28–2/29: |  |  |  |  |  |  |  |  |
2012(g) |  | 2015 |  |  | $ | 9.85 |  |  | $ | 9.72 |
2011 |  | 2015 |  |  |  | 9.63 |  |  | 9.74 | ^
2010 |  |  | — |  |  |  | — |  |  |  | — |
2009(f) |  |  | — |  |  |  | — |  |  |  | — |
Year Ended 8/31 |  |  |  |  |  |  |  |  |  |  |  |
2008 |  |  | — |  |  |  | — |  |  |  | — |
2007 |  |  | — |  |  |  | — |  |  |  | — |
2006 |  |  | — |  |  |  | — |  |  |  | — |
California Dividend Advantage (NAC) |  |  |  |  |  |  |  |  |  |  |  |
Year Ended 2/28–2/29: |  |  |  |  |  |  |  |  |  |  |  |
2012(g) |  |  | — |  |  |  | — |  |  |  | — |
2011 |  |  | — |  |  |  | — |  |  |  | — |
2010 |  |  | — |  |  |  | — |  |  |  | — |
2009(f) |  |  | — |  |  |  | — |  |  |  | — |
Year Ended 8/31: |  |  |  |  |  |  |  |  |  |  |  |
2008 |  |  | — |  |  |  | — |  |  |  | — |
2007 |  |  | — |  |  |  | — |  |  |  | — |
2006 |  |  | — |  |  |  | — |  |  |  | — |

^ | For the period September 22, 2010 (first issuance date of shares) through February 28, 2011.

See accompanying notes to financial statements.

Nuveen Investments |  | 87

|  | Financial
|  | Highlights (Unaudited) (continued)

|  | ARPS at the End of Period |  |  | MTP Shares at the End of Period (h) |  |  | ARPS and MTP Shares at the End of Period |
|  |  | Aggregate Amount Outstanding (000) |  |  | Liquidation Value Per Share |  |  | Asset Coverage Per Share |  |  |  | Aggregate Amount Outstanding (000) |  |  | Liquidation Value Per Share |  |  | Asset Coverage Per Share |  |  | Asset Coverage Per $1 Liquidation Preference |
California Dividend Advantage 2 (NVX) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Year Ended 2/28–2/29: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2012(g) |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 97,846 |  |  | $ | 10.00 |  |  | $ | 31.70 |  |  | $ | — |
2011 |  |  | 39,950 |  |  |  | 25,000 |  |  |  | 77,310 |  |  |  | 55,000 |  |  |  | 10.00 |  |  |  | 30.92 |  |  |  | 3.09 |
2010 |  |  | 93,775 |  |  |  | 25,000 |  |  |  | 81,968 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
2009(f) |  |  | 110,000 |  |  |  | 25,000 |  |  |  | 68,369 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Year Ended 8/31: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2008 |  |  | 110,000 |  |  |  | 25,000 |  |  |  | 73,384 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
2007 |  |  | 110,000 |  |  |  | 25,000 |  |  |  | 74,394 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
2006 |  |  | 110,000 |  |  |  | 25,000 |  |  |  | 76,627 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
California Dividend Advantage 3 (NZH) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Year Ended 2/28–2/29: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2012(g) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 159,545 |  |  |  | 10.00 |  |  |  | 29.58 |  |  |  | — |
2011 |  |  | 69,500 |  |  |  | 25,000 |  |  |  | 71,960 |  |  |  | 86,250 |  |  |  | 10.00 |  |  |  | 28.78 |  |  |  | 2.88 |
2010 |  |  | 69,500 |  |  |  | 25,000 |  |  |  | 76,021 |  |  |  | 86,250 |  |  |  | 10.00 |  |  |  | 30.41 |  |  |  | 3.04 |
2009(f) |  |  | 154,075 |  |  |  | 25,000 |  |  |  | 70,117 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Year Ended 8/31: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2008 |  |  | 159,925 |  |  |  | 25,000 |  |  |  | 76,377 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
2007 |  |  | 187,000 |  |  |  | 25,000 |  |  |  | 70,963 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
2006 |  |  | 187,000 |  |  |  | 25,000 |  |  |  | 73,459 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |

(f) | For the six months ended February 28, 2009.
(g) | For the six months ended August 31, 2011.
(h) | The Ending and Average Market Value Per Share for each Series of the Fund’s MTP Shares were as follows:

|  | Series |  |  | Ending Market Value Per Share |  |  | Average Market Value Per Share |  |  | Series |  |  | Ending Market Value Per Share |  |  | Average Market Value Per Share |  |  | Series |  |  | Ending Market Value Per Share |  |  | Average Market Value Per Share |
California Dividend Advantage 2 (NVX) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Year Ended 2/28–2/29: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2012(g) |  |  | — |  |  | $ | — |  |  | $ | — |  |  |  | 2014 |  |  | $ | 10.09 |  |  | $ | 10.09 | Ω |  |  | 2015 |  |  | $ | 9.96 |  |  | $ | 9.82 |
2011 |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 2015 |  |  |  | 9.82 |  |  | 9.72 | ^^
2010 |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
2009(f) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Year Ended 8/31: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2008 |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
2007 |  |  | — |  |  |  |  |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
2006 |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
California Dividend Advantage 3 (NZH) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Year Ended 2/28–2/29: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2012(g) |  |  | 2014 |  |  |  | 10.21 |  |  |  | 10.10 | ΩΩ |  |  | 2014-1 |  |  |  | 10.04 |  |  |  | 10.13 | ΩΩΩ |  |  | 2015 |  |  |  | 10.17 |  |  |  | 10.09 |
2011 |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 2015 |  |  |  | 10.06 |  |  |  | 10.14 |
2010 |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 2015 |  |  |  | 10.11 |  |  | 10.09 | ^
2009(f) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Year Ended 8/31: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2008 |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
2007 |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
2006 |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |

^ | For the period December 21, 2009 (first issuance date of shares) through February 28, 2010.
^^ | For the period October 22, 2010 (first issuance date of shares) through February 28, 2011.
Ω | For the period March 9, 2011 (first issuance date of shares) through August 31, 2011.
ΩΩ | For the period April 11, 2011 (first issuance date of shares) through August 31, 2011.
ΩΩΩ | For the period June 6, 2011 (first issuance date of shares) through August 31, 2011.

88 |  | Nuveen Investments

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

See accompanying notes to financial statements.

Nuveen Investments |  | 89

|  | Notes to
|  | Financial Statements (Unaudited)

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

90 |  | Nuveen Investments

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

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

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|  | Notes to
|  | Financial Statements (Unaudited) (continued)

|  | California Dividend Advantage 2 (NVX | ) |  | California Dividend Advantage 3 (NZH | ) |  | Insured California Dividend Advantage (NKL | ) |  | Insured California Tax-Free Advantage (NKX | )
ARPS redeemed, at liquidation value |  | $ | 110,000,000 |  |  | $ | 187,000,000 |  |  | $ | 118,000,000 |  |  | $ | 45,000,000 |

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

|  | California Premium Income (NCU)
|  | Shares Outstanding |  | Annual Interest Rate |  | NYSE Ticker |
Series 2015 |  |  | 35,250,000 |  |  | 2.00 | % |  | NCU Pr C |

|  | California Dividend Advantage 2 (NVX) |  | California Dividend Advantage 3 (NZH)
|  | Shares Outstanding |  | Annual Interest Rate |  | NYSE Ticker |  | Shares Outstanding |  | Annual Interest Rate |  | NYSE Ticker |
Series: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2014 |  |  | 42,846,300 |  |  | 2.35 | % |  | NVX Pr A |  |  | 27,000,000 |  |  | 2.35 | % |  | NZH Pr A |
2014-1 |  |  | — |  |  | — |  |  | — |  |  | 46,294,500 |  |  | 2.25 |  |  | NZH Pr B |
2015 |  |  | 55,000,000 |  |  | 2.05 |  |  | NVX Pr C |  |  | 86,250,000 |  |  | 2.95 |  |  | NZH Pr C |

Each Fund is obligated to redeem its MTP Shares by the date as specified in its offering document (“Term Redemption Date”), unless earlier redeemed or repurchased by the Fund. MTP Shares are subject to optional and mandatory redemption in certain circumstances. MTP Shares will be subject to redemption at the option of each Fund (“Optional Redemption Date”), subject to a payment of premium for one year following the Optional Redemption Date (“Premium Expiration Date”), and at par thereafter. MTP Shares also will be subject to redemption, at the option of each Fund, at par in the event of certain changes in the credit rating of the MTP Shares. Each Fund may be obligated to redeem certain of the MTP Shares if the Fund fails to maintain certain asset coverage and leverage ratio requirements and such failures are not cured by the applicable cure date. The redemption price per share is equal to the sum of the liquidation value per share plus any accumulated but unpaid dividends. The Term Redemption Date, Optional Redemption Date and Premium Expiration Date for each Fund’s MTP Shares are as follows:

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|  | California Premium Income (NCU | ) | California Dividend Advantage 2 (NVX | ) | California Dividend Advantage 2 (NVX | ) | California Dividend Advantage 3 (NZH | ) | California Dividend Advantage 3 (NZH | ) | California Dividend Advantage 3 (NZH | )
|  | Series 2015 |  | Series 2014 |  | Series 2015 |  | Series 2014 |  | Series 2014-1 |  | Series 2015 |
Term Redemption Date |  | October 1, 2015 |  | April 1, 2014 |  |  | November 1, 2015 |  |  | May 1, 2014 |  |  | July 1, 2014 |  |  | January 1, 2015 |
Optional Redemption Date |  | October 1, 2011 |  | April 1, 2012 |  |  | November 1, 2011 |  |  | May 1, 2012 |  |  | July 1, 2012 |  |  | January 1, 2011 |
Premium Expiration Date |  | September 30, 2012 |  |  | March 31, 2013 |  |  | October 31, 2012 |  |  | April 30, 2013 |  |  | June 30, 2013 |  | December 31, 2011 |

The average liquidation value of MTP Shares outstanding for each Fund during the six months ended August 31, 2011, was as follows:

|  | California Premium Income (NCU | ) |  | California Dividend Advantage 2 (NVX | ) |  | California Dividend Advantage 3 (NZH | )
Average liquidation value of MTP Shares outstanding |  | $ | 35,250,000 |  |  | $ | 91,148,793 |  |  | $ | 129,075,019 |

For financial reporting purposes only, the liquidation value of MTP Shares is recorded as a liability on the Statement of Assets and Liabilities. Unpaid dividends on MTP Shares are recognized as a component of “Interest payable” on the Statement of Assets and Liabilities. Dividends paid on MTP Shares are recognized as a component of “Interest expense and amortization of offering costs” on the Statement of Operations.
Net amounts earned by Nuveen as underwriter of each Fund’s MTP Share offering are recorded as reductions of offering costs recognized by the Funds. During the six months ended August 31, 2011, the net amounts earned by Nuveen for each fund were as follows:

|  | California Premium Income (NCU | ) |  | California Dividend Advantage 2 NVX | ) |  | California Dividend Advantage 3 (NZH | )
Net amounts earned by Nuveen |  | $ | 2,021 |  |  | $ | 4,454 |  |  | $ | 1,895 |

Variable Rate Demand Preferred Shares
The following Funds have issued and outstanding Variable Rate Demand Preferred (“VRDP”) Shares, with a $100,000 liquidation value per share. Insured California Premium Income (NPC), Insured California Premium Income 2 (NCL), California Dividend Advantage (NAC), Insured California Dividend Advantage (NKL) and Insured California Tax-Free Advantage (NKX) issued their VRDP Shares in a privately negotiated offering during March 2010, December 2010, June 2011, June 2011 and August 2008, respectively. Proceeds of each Fund’s offering were used to redeem all, or a portion of, each Fund’s outstanding ARPS. The VRDP Shares were offered to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933. As of August 31, 2011, the number of VRDP Shares outstanding and maturity date for each Fund are as follows:

|  | Insured California Premium Income (NPC | ) |  | Insured California Premium Income 2 (NCL | ) |  | Insured California Dividend Advantage (NAC | ) |  | Insured California Dividend Advantage (NKL | ) |  | California Tax-Free Advantage (NKX | )
Series |  |  | 1 |  |  |  | 1 |  |  |  | 1 |  |  |  | 1 |  |  |  | 2 |
Shares outstanding |  |  | 427 |  |  |  | 740 |  |  |  | 1,362 |  |  |  | 1,044 |  |  |  | 355 |
Maturity |  |  | March 1, 2040 |  |  | December 1, 2040 |  |  |  | June 1, 2041 |  |  |  | June 1, 2041 |  |  |  | June 1, 2040 |

VRDP Shares include a liquidity feature that allows VRDP shareholders to have their shares purchased by a liquidity provider with whom each Fund has contracted in the event that purchase orders for VRDP Shares in a remarketing are not sufficient in number to be matched with the sale orders in that remarketing. Each Fund is required to redeem any VRDP Shares that are still owned by the liquidity provider after six months of continuous, unsuccessful remarketing.
Dividends on the VRDP Shares (which are treated as interest payments for financial reporting purposes) are set weekly at a rate established by a remarketing agent; therefore, the market value of the VRDP Shares is expected to approximate its liquidation value. If remarketings for VRDP Shares are continuously unsuccessful for six months, the maximum rate is designed to escalate according to a specified schedule in order to enhance the remarketing agent’s ability to successfully remarket the VRDP Shares.
Subject to certain conditions, VRDP Shares may be redeemed, in whole or in part, at any time at the option of each Fund. Each Fund may also redeem certain of the VRDP Shares if the Fund fails to maintain certain asset coverage requirements and such failures are not cured by the applicable cure date. The redemption price per share is equal to the sum of the liquidation value per share plus any accumulated but unpaid dividends.

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|  | Notes to
|  | Financial Statements (Unaudited) (continued)

The average liquidation value outstanding and annualized dividend rate of VRDP Shares for each Fund during the six months ended August 31, 2011, were as follows:

|  | Insured California Premium Income (NPC | ) |  | Insured California Premium Income 2 (NCL | ) |  | California Dividend Advantage (NAC | )* |  | Insured California Dividend Advantage (NKL | )* |  | Insured California Tax-Free Advantage (NKX | )
Average liquidation value outstanding |  | $ | 42,700,000 |  |  | $ | 74,000,000 |  |  | $ | 136,200,000 |  |  | $ | 104,400,000 |  |  | $ | 35,500,000 |
Annualized dividend rate |  |  | 0.35 | % |  |  | 0.39 | % |  |  | 0.29 | % |  |  | 0.29 | % |  |  | 0.32 | %

* | For the period June 28, 2011 (issuance date of shares) through August 31, 2011.

For financial reporting purposes only, the liquidation value of VRDP Shares is recognized as a liability on the Statement of Assets and Liabilities. Unpaid dividends on VRDP Shares are recognized as a component of “Interest payable” on the Statement of Assets and Liabilities. Dividends paid on the VRDP Shares are recognized as a component of “Interest expense and amortization of offering costs” on the Statement of Operations. In addition to interest expense, each Fund also pays a per annum liquidity fee to the liquidity provider, which is recognized as “Liquidity fees on VRDP” on the Statement of Operations.
Insurance
Since 2007, the financial status of most major municipal bond insurers has deteriorated substantially, and some insurers have gone out of business, rendering worthless the insurance policies they had written. Under normal circumstances, Insured California Premium Income (NPC), Insured California Premium Income 2 (NCL), Insured California Dividend Advantage (NKL) and Insured California Tax-Free Advantage (NKX) invests at least 80% of their managed assets (as defined in Footnote 7 – Management Fees and Other Transactions with Affiliates) in municipal securities that are covered by insurance guaranteeing the timely payment of principal and interest. In addition, the municipal securities in which each Fund invests will be investment grade at the time of purchase (including (i) bonds insured by investment grade rated insurers or are rated investment grade; (ii) unrated bonds that are judged to be investment grade by the Adviser; and (iii) escrowed bonds). Ratings below BBB by one or more national rating agencies are considered to be below investment grade.
Each insured municipal security is covered by Original Issue Insurance, Secondary Market Insurance or Portfolio Insurance. Assuming that the insurer remains creditworthy, the insurance feature of a municipal security guarantees the full payment of principal and interest when due through the life of an insured obligation. Such insurance does not guarantee the market value of the insured obligation or the value of the Fund’s Common shares. Original Issue Insurance and Secondary Market Insurance remain in effect as long as the municipal securities covered thereby remain outstanding and the insurer remains in business, regardless of whether the Funds ultimately dispose of such municipal securities. Consequently, the market value of the municipal securities covered by Original Issue Insurance or Secondary Market Insurance may reflect value attributable to the insurance. Portfolio Insurance, in contrast, is effective only while the municipal securities are held by the Funds and is reflected as an expense over the term of the policy, when applicable. Accordingly, neither the prices used in determining the market value of the underlying municipal securities nor the Common share net asset value of the Funds include value, if any, attributable to the Portfolio Insurance. Each policy of the Portfolio Insurance does, however, give the Funds the right to obtain permanent insurance with respect to the municipal security covered by the Portfolio Insurance policy at the time of its sale.
Inverse Floating Rate Securities
Each Fund is authorized to invest in inverse floating rate securities. An inverse floating rate security is created by depositing a municipal bond, typically with a fixed interest rate, into a special purpose trust created by a broker-dealer. In turn, this trust (a) issues floating rate certificates, in face amounts equal to some fraction of the deposited bond’s par amount or market value, that typically pay short-term tax-exempt interest rates to third parties, and (b) issues to a long-term investor (such as one of the Funds) an inverse floating rate certificate (sometimes referred to as an “inverse floater”) that represents all remaining or residual interest in the trust. The income received by the inverse floater holder varies inversely with the short-term rate paid to the floating rate certificates’ holders, and in most circumstances the inverse floater holder bears substantially all of the underlying bond’s downside investment risk and also benefits disproportionately from any potential appreciation of the underlying bond’s value. The price of an inverse floating rate security will be more volatile than that of the underlying bond because the interest rate is dependent on not only the fixed coupon rate of the underlying bond but also on the short-term interest paid on the floating rate certificates, and because the inverse floating rate security essentially bears the risk of loss of the greater face value of the underlying bond.
A Fund may purchase an inverse floating rate security in a secondary market transaction without first owning the underlying bond (referred to as an “externally-deposited inverse floater”), or instead by first selling a fixed-rate bond to a broker-dealer for deposit into the special purpose trust and receiving in turn the residual interest in the trust (referred to as a “self-deposited inverse floater”). The inverse floater held by a Fund gives the Fund the right (a) to cause the holders of the floating rate certificates to tender their notes at par, and (b) to have the broker transfer the fixed-rate bond held by the trust to the Fund, thereby collapsing the trust. An investment in an externally-deposited inverse floater is identified in the Portfolio of Investments as “(IF) – Inverse floating rate investment.” An investment in a self-deposited inverse floater is accounted for as a financing transaction. In such instances, a fixed-rate bond deposited into a special purpose trust is identified in the Portfolio of Investments as “(UB) – Underlying bond of an inverse floating rate trust reflected as a financing transaction,” with the Fund accounting for the short-term floating rate certificates issued by the trust

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

|  | Insured California Premium Income (NPC | ) |  | Insured California Premium Income 2 (NCL | ) | California Premium Income (NCU | ) | California Dividend Advantage (NAC | ) | California Dividend Advantage 2 (NVX | ) | California Dividend Advantage 3 (NZH | ) | Insured California Dividend Advantage (NKL | ) | Insured California Tax-Free Advantage (NKX | )
Maximum exposure to Recourse Trusts |  | $ | 9,780,000 |  | $ | 9,515,000 |  | $ | 6,510,000 |  | $ | 3,590,000 |  | $ | 16,210,000 |  | $ | 48,960,000 |  | $ | 7,700,000 |  | $ | 2,905,000 |

The average floating rate obligations outstanding and average annual interest rate and fees related to self-deposited inverse floaters for the following Funds during the six months ended August 31, 2011, were as follows:

|  | Insured California Premium Income 2 (NCL | ) |  | California Premium Income (NCU | ) |  | California Dividend Advantage (NAC | )
Average floating rate obligations outstanding |  | $ | 17,880,000 |  |  | $ | 6,650,000 |  |  | $ | 28,545,000 |
Average annual interest rate and fees |  |  | 0.61 | % |  |  | 0.57 | % |  |  | 0.63 | %

|  | California Dividend Advantage 2 (NVX | ) |  | California Dividend Advantage 3 (NZH | ) |  | Insured California Dividend Advantage (NKL | ) |  | Insured California Tax-Free Advantage (NKX | )
Average floating rate obligations outstanding |  | $ | 11,390,000 |  |  | $ | 3,845,000 |  |  | $ | 7,385,000 |  |  | $ | 3,360,000 |
Average annual interest rate and fees |  |  | 0.63 | % |  |  | 0.57 | % |  |  | 0.64 | % |  |  | 0.80 | %

Forward Swap Contracts
Each Fund is authorized to enter into forward interest rate swap contracts consistent with their investment objectives and policies to reduce, increase or otherwise alter its risk profile or to alter its portfolio characteristics (i.e. duration, yield curve positioning and credit quality).
Each Fund is subject to interest rate risk in the normal course of pursuing its investment objectives. Each Fund’s use of forward interest rate swap transactions is intended to help the Fund manage its overall interest rate sensitivity, either shorter or longer, generally to more closely align the Fund’s interest rate sensitivity with that of the broader market. Forward interest rate swap transactions involve a Fund’s agreement with a counterparty to pay, in the future, a fixed or variable rate payment in exchange for the counterparty paying a Fund a variable or fixed rate payment, the accruals for which would begin at a specified date in the future (the “effective date”). The amount of the payment obligation is based on the notional amount of the swap contract and the termination date of the swap (which is akin to a bond’s maturity). The value of a Fund’s swap commitment would increase or decrease based primarily on the extent to which long-term interest rates for bonds having a maturity of the swap’s termination date increases or decreases. Forward interest rate swap contracts are valued daily. The net amount recorded on these transactions for each counterparty is recognized on the Statement of Assets and Liabilities as a component of “Unrealized appreciation or depreciation on forward swaps” with the change during the fiscal period recognized on the Statement of Operations as a component of “Change in net unrealized appreciation (depreciation) of forward swaps.”
Each Fund may terminate a swap contract prior to the effective date, at which point a realized gain or loss is recognized. When a forward swap is terminated, it ordinarily does not involve the delivery of securities or other underlying assets or principal, but rather is settled in cash on a net basis. Net realized gains and losses during the fiscal period are recognized on the Statement of Operations as a component of “Net realized gain (loss) from forward swaps.” Each Fund intends, but is not obligated, to terminate its forward swaps before the effective date. Accordingly, the risk of loss with

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|  | Notes to
|  | Financial Statements (Unaudited) (continued)

respect to the swap counterparty on such transactions is limited to the credit risk associated with a counterparty failing to honor its commitment to pay any realized gain to the Fund upon termination.
During the six months ended August 31, 2011, Insured California Premium Income 2 (NCL) entered into forward swap transactions to broadly reduce the sensitivity of the Fund to movements in U.S. interest rates. The average notional amount of forward interest rate swap contracts outstanding during the six months ended August 31, 2011 was as follows:

|  | Insured California Premium Income 2 (NCL | )
Average notional amount of forward interest rate swap contracts outstanding* |  | $ | 3,833,333 |

* | The average notional amount is calculated based on the outstanding notional at the beginning of the fiscal year and at the end of each fiscal quarter within the current fiscal year.

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

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

|  | Insured California Premium Income (NPC | ) |  | Insured California Premium Income 2 (NCL | ) |  | California Dividend Advantage (NAC | ) |  | Insured California Dividend Advantage (NKL | ) |  | Insured California Tax-Free Advantage (NKX | )
VRDP Shares |  | $ | 857,000 |  |  | $ | 627,000 |  |  | $ | 650,000 |  |  | $ | 580,000 |  |  | $ | 530,000 |

Custodian Fee Credit
Each Fund has an arrangement with the custodian bank whereby certain custodian fees and expenses are reduced by net credits earned on each Fund’s cash on deposit with the bank. Such deposit arrangements are an alternative to overnight investments. Credits for cash balances may be offset by charges for any days on which a Fund overdraws its account at the custodian bank.

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Indemnifications
Under the Funds’ organizational documents, their officers and directors/trustees are indemnified against certain liabilities arising out of the performance of their duties to the Funds. In addition, in the normal course of business, the Funds enter into contracts that provide general indemnifications to other parties. The Funds’ maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds that have not yet occurred. However, the Funds have not had prior claims or losses pursuant to these contracts and expect the risk of loss to be remote.
Use of Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets applicable to Common shares from operations during the reporting period. Actual results may differ from those estimates.
2. Fair Value Measurements
Fair value is defined as the price that the Funds would receive upon selling an investment or transferring a liability in an orderly transaction to an independent buyer in the principal or most advantageous market for the investment. A three-tier hierarchy is used to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability. Observable inputs are based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability. Unobservable inputs are based on the best information available in the circumstances. The three-tier hierarchy of inputs is summarized in the three broad levels listed below:

| Level 1 – | Quoted prices in active markets for identical securities.
| Level 2 – | Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
| Level 3 – | Significant unobservable inputs (including management’s assumptions in determining the fair value of investments).

The inputs or methodologies used for valuing securities are not an indication of the risk associated with investing in those securities. The following is a summary of each Fund’s fair value measurements as of August 31, 2011:

Insured California Premium Income (NPC) |  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
Investments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Municipal Bonds |  | $ | — |  |  | $ | 134,907,914 |  |  | $ | — |  |  | $ | 134,907,914 |

Insured California Premium Income 2 (NCL) |  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
Investments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Municipal Bonds |  | $ | — |  |  | $ | 266,052,088 |  |  | $ | — |  |  | $ | 266,052,088 |

California Premium Income (NCU) |  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
Investments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Municipal Bonds |  | $ | — |  |  | $ | 118,243,881 |  |  | $ | 2,236,791 |  |  | $ | 120,480,672 |

California Dividend Advantage (NAC) |  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
Investments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Municipal Bonds |  | $ | — |  |  | $ | 470,695,220 |  |  | $ | 706,700 |  |  | $ | 471,401,920 |

California Dividend Advantage 2 (NVX) |  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
Investments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Municipal Bonds |  | $ | — |  |  | $ | 311,692,875 |  |  | $ | 440,300 |  |  | $ | 312,133,175 |

California Dividend Advantage 3 (NZH) |  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
Investments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Municipal Bonds |  | $ | — |  |  | $ | 457,603,383 |  |  | $ | 725,200 |  |  | $ | 458,328,583 |

Insured California Dividend Advantage (NKL) |  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
Investments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Municipal Bonds |  | $ | — |  |  | $ | 334,584,349 |  |  | $ | — |  |  | $ | 334,584,349 |

Insured California Tax-Free Advantage (NKX) |  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
Investments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Municipal Bonds |  | $ | — |  |  | $ | 116,351,102 |  |  | $ | — |  |  | $ | 116,351,102 |

Nuveen Investments |  | 97

|  | Notes to
|  | Financial Statements (Unaudited) (continued)

The following is a reconciliation of each Fund’s Level 3 investments held at the beginning and end of the measurement period:

|  | California |  |  | California |  |  | California |  |  | California |
|  | Premium |  |  | Dividend |  |  | Dividend |  |  | Dividend |
|  | Income |  |  | Advantage |  |  | Advantage 2 |  |  | Advantage 3 |
|  | (NCU | ) |  | (NAC | ) |  | (NVX | ) |  | (NZH | )
|  | Level 3 |  |  | Level 3 |  |  | Level 3 |  |  | Level 3 |
|  | Municipal |  |  | Municipal |  |  | Municipal |  |  | Municipal |
|  | Bonds |  |  | Bonds |  |  | Bonds |  |  | Bonds |
Balance at the beginning of period |  | $ | 2,746,970 |  |  | $ | 1,229,601 |  |  | $ | 766,086 |  |  | $ | 1,261,789 |
Gains (losses): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net realized gains (losses) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Net change in unrealized appreciation (depreciation) |  |  | 179,821 |  |  |  | (522,901 | ) |  |  | (325,786 | ) |  |  | (536,589 | )
Purchases at cost |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Sales at proceeds |  |  | (690,000 | ) |  |  | — |  |  |  | — |  |  |  | — |
Net discounts (premiums) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Transfers in to |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Transfers out of |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Balance at the end of period |  | $ | 2,236,791 |  |  | $ | 706,700 |  |  | $ | 440,300 |  |  | $ | 725,200 |
Change in net unrealized appreciation (depreciation) during the period of Level 3 securities held as of August 31, 2011 |  | $ | 179,821 |  |  | $ | (522,901 | ) |  | $ | (325,786 | ) |  | $ | (536,589 | )

During the six months ended August 31, 2011, the Funds recognized no significant transfers to or from Level 1, Level 2 or Level 3.
3. Derivative Instruments and Hedging Activities
The Funds record derivative instruments at fair value, with changes in fair value recognized on the Statement of Operations, when applicable. Even though the Funds’ investments in derivatives may represent economic hedges, they are not considered to be hedge transactions for financial reporting purposes. For additional information on the derivative instruments in which each Fund was invested during and at the end of the reporting period, refer to the Portfolios of Investments, Financial Statements and Footnote 1 - General Information and Significant Accounting Policies.
The following tables present the amount of net realized gain (loss) and change in net unrealized appreciation (depreciation) recognized for the six months ended August 31, 2011, on derivative instruments, as well as the primary risk exposure associated with each.

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

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

98 |  | Nuveen Investments

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

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

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

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

|  | Insured California Dividend Advantage (NKL) |  | Insured California Tax-Free Advantage (NKX) |
|  | Six Months Ended 8/31/11 |  | Year Ended 2/28/11 |  | Six Months Ended 8/31/11 |  | Year Ended 2/28/11 |
Common shares: |  |  |  |  |  |  |  |  |  |  |  |  |
Issued to shareholders due to reinvestment of distributions |  |  | — |  |  | 2,873 |  |  | — |  |  | 596 |
Repurchased and retired |  |  | — |  |  | — |  |  | — |  |  | — |
Weighted average Common share: |  |  |  |  |  |  |  |  |  |  |  |  |
Price per share repurchased and retired |  |  | — |  |  | — |  |  | — |  |  | — |
Discount per share repurchased and retired |  |  | — |  |  | — |  |  | — |  |  | — |

Preferred Shares
Insured California Tax-Free Advantage (NKX) redeemed all of its outstanding ARPS during the fiscal year ended August 31, 2008.

Nuveen Investments |  | 99

|  | Notes to
|  | Financial Statements (Unaudited) (continued)

Transactions in ARPS were as follows:

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

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

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

|  | Insured California Dividend Advantage (NKL) |
|  | Six Months Ended 8/31/11 |  | Year Ended 2/28/11 |
|  | Shares |  | Amount |  | Shares |  | Amount |
ARPS redeemed: |  |  |  |  |  |  |  |  |
Series T |  |  | 2,075 |  | $ | 51,875,000 |  |  | 90 |  | $ | 2,250,000 |
Series F |  |  | 2,075 |  |  | 51,875,000 |  |  | 90 |  |  | 2,250,000 |
Total |  |  | 4,150 |  | $ | 103,750,000 |  |  | 180 |  | $ | 4,500,000 |

N/A - As of February 28, 2011, the Fund redeemed all of its outstanding ARPS at liquidation value.
Transactions in MTP Shares were as follows:

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

100 |  | Nuveen Investments

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

Transactions in VRDP Shares were as follows:

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

|  | California Dividend Advantage (NAC) |  | Insured California Dividend Advantage (NKL) |
|  | Six Months Ended 8/31/11 |  | Year Ended 2/28/11 |  | Six Months Ended 8/31/11 |  | Year Ended 2/28/11 |
|  | Shares |  | Amount |  | Shares |  | Amount |  | Shares |  | Amount |  | Shares |  | Amount |
VRDP Shares issued: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Series 1 |  |  | 1,362 |  | $ | 136,200,000 |  |  | — |  | $ | — |  |  | 1,044 |  | $ | 104,400,000 |  |  | — |  | $ | — |

5. Investment Transactions
Purchases and sales (including maturities but excluding short-term investments and derivative transactions, where applicable) during the six months ended August 31, 2011, were as follows:

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

|  | California Dividend Advantage 2 (NVX | ) |  | California Dividend Advantage 3 (NZH | ) |  | Insured California Dividend Advantage (NKL | ) |  | Insured California Tax-Free Advantage (NKX | )
Purchases |  | $ | 11,487,027 |  |  | $ | 33,705,919 |  |  | $ | 28,822,652 |  |  | $ | 1,495,410 |
Sales and maturities |  |  | 14,216,407 |  |  |  | 40,001,620 |  |  |  | 26,677,784 |  |  |  | 3,906,596 |

6. Income Tax Information
The following information is presented on an income tax basis. Differences between amounts for financial statement and federal income tax purposes are primarily due to timing differences in recognizing taxable market discount, timing differences in recognizing certain gains and losses on investment transactions and the treatment of investments in inverse floating rate securities reflected as financing transactions, if any. To the extent that differences arise that are permanent in nature, such amounts are reclassified within the capital accounts as detailed below. Temporary differences do not require reclassification. Temporary and permanent differences do not impact the net asset values of the Funds.

Nuveen Investments |  | 101

|  | Notes to
|  | Financial Statements (Unaudited) (continued)

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

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

|  | California Dividend Advantage 2 (NVX | ) |  | California Dividend Advantage 3 (NZH | ) |  | Insured California Dividend Advantage (NKL | ) |  | Insured California Tax-Free Advantage (NKX | )
Cost of investments |  | $ | 300,785,430 |  |  | $ | 463,561,736 |  |  | $ | 323,112,366 |  |  | $ | 113,965,753 |
Gross unrealized: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Appreciation |  | $ | 13,140,408 |  |  | $ | 14,841,594 |  |  | $ | 13,754,047 |  |  | $ | 3,669,133 |
Depreciation |  |  | (13,179,724 | ) |  |  | (23,919,747 | ) |  |  | (9,666,861 | ) |  |  | (4,641,354 | )
Net unrealized appreciation (depreciation) of investments |  | $ | (39,316 | ) |  | $ | (9,078,153 | ) |  | $ | 4,087,186 |  |  | $ | (972,221 | )

Permanent differences, primarily due to federal taxes paid, taxable market discount, expiration of capital loss carryforwards, nondeductible offering costs, and distribution character reclassifications, resulted in reclassifications among the Funds’ components of Common share net assets at February 28, 2011, the Funds’ last tax year end, as follows:

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

|  | California Dividend Advantage 2 (NVX | ) |  | California Dividend Advantage 3 (NZH | ) |  | Insured California Dividend Advantage (NKL | ) |  | Insured California Tax-Free Advantage (NKX | )
Paid-in-surplus |  | $ | (82,092 | ) |  | $ | (3,141,289 | ) |  | $ | — |  |  | $ | (216,845 | )
Undistributed (Over-distribution of) net investment income |  |  | 53,999 |  |  |  | 268,858 |  |  |  | (22,891 | ) |  |  | 216,845 |
Accumulated net realized gain (loss) |  |  | 28,092 |  |  |  | 2,872,431 |  |  |  | 22,891 |  |  |  | — |

The tax components of undistributed net tax-exempt income, net ordinary income and net long-term capital gains at February 28, 2011, the Funds’ last tax year end, were as follows:

|  | Insured California Premium Income (NPC | ) |  | Insured California Premium Income 2 (NCL | ) |  | California Premium Income (NCU | ) |  | California Dividend Advantage (NAC | )
Undistributed net tax-exempt income * |  | $ | 1,839,223 |  |  | $ | 3,879,525 |  |  | $ | 1,788,999 |  |  | $ | 7,689,513 |
Undistributed net ordinary income ** |  |  | 161,841 |  |  |  | 150,935 |  |  |  | 3,522 |  |  |  | 106,883 |
Undistributed net long-term capital gains |  |  | 48,836 |  |  |  | — |  |  |  | — |  |  |  | — |

102 |  | Nuveen Investments

|  | California Dividend Advantage 2 (NVX | ) |  | California Dividend Advantage 3 (NZH | ) |  | Insured California Dividend Advantage (NKL | ) |  | Insured California Tax-Free Advantage (NKX | )
Undistributed net tax-exempt income * |  | $ | 5,075,158 |  |  | $ | 5,823,059 |  |  | $ | 5,167,309 |  |  | $ | 1,360,346 |
Undistributed net ordinary income ** |  |  | 11,877 |  |  |  | 8,491 |  |  |  | 84,729 |  |  |  | 28,931 |
Undistributed net long-term capital gains |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |

* | Undistributed net tax-exempt income (on a tax basis) has not been reduced for the dividend declared on February 1, 2011, paid on March 1, 2011.
** | Net ordinary income consists of taxable market discount income and net short-term capital gains, if any.

The tax character of distributions paid during the Funds’ last tax year ended February 28, 2011, was designated for purposes of the dividends paid deduction as follows:

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

|  | California Dividend Advantage 2 (NVX | ) |  | California Dividend Advantage 3 (NZH | ) |  | Insured California Dividend Advantage (NKL | ) |  | Insured California Tax-Free Advantage (NKX | )
Distributions from net tax-exempt income |  | $ | 14,738,103 |  |  | $ | 24,545,542 |  |  | $ | 14,593,850 |  |  | $ | 4,850,289 |
Distributions from net ordinary income ** |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Distributions from net long-term capital gains |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |

** | Net ordinary income consists of taxable market discount income and net short-term capital gains, if any.

At February 28, 2011, the Funds’ last tax year end, the following Funds had unused capital loss carryforwards available for federal income tax purposes to be applied against future capital gains, if any. If not applied, the carryforwards will expire as follows:

|  | Insured California Premium Income 2 (NCL | ) |  | California Premium Income (NCU | ) |  | California Dividend Advantage (NAC | ) |  | California Dividend Advantage 2 (NVX | ) |  | California Dividend Advantage 3 (NZH | ) |  | Insured California Dividend Advantage (NKL | ) |  | Insured California Tax-Free Advantage (NKX | )
Expiration: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
February 29, 2012 |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 323,840 |  |  | $ | — |  |  | $ | — |
February 29, 2016 |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 3,869,938 |  |  |  | — |  |  |  | — |
February 28, 2017 |  |  | — |  |  |  | 59,969 |  |  |  | 10,106,897 |  |  |  | — |  |  |  | 4,536,999 |  |  |  | 123,944 |  |  |  | 485,298 |
February 28, 2018 |  |  | 1,444,281 |  |  |  | 881,108 |  |  |  | 731,149 |  |  |  | 705,843 |  |  |  | 10,646,251 |  |  |  | 1,227,051 |  |  |  | 530,894 |
February 28, 2019 |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 1,340,157 |  |  |  | — |  |  |  | — |
Total |  | $ | 1,444,281 |  |  | $ | 941,077 |  |  | $ | 10,838,046 |  |  | $ | 705,843 |  |  | $ | 20,717,185 |  |  | $ | 1,350,995 |  |  | $ | 1,016,192 |

During the Funds’ last tax year ended February 28, 2011, the following Funds utilized capital loss carryforwards as follows:

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

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|  | Notes to
|  | Financial Statements (Unaudited) (continued)

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

|  | Insured California Premium Income (NPC | ) |  | Insured California Premium Income 2 (NCL | ) |  | California Premium Income (NCU | ) |  | California Dividend Advantage (NAC | ) |  | Insured California Tax-Free Advantage (NZH | )
Post-October capital losses |  | $ | 1,606 |  |  | $ | 5,056 |  |  | $ | 8,964 |  |  | $ | 3,411,514 |  |  | $ | 642,021 |

7. Management Fees and Other Transactions with Affiliates
Each Fund’s management fee consists of two components – a fund-level fee, based only on the amount of assets within the Fund, and a complex-level fee, based on the aggregate amount of all eligible fund assets managed by the Adviser. This pricing structure enables Fund shareholders to benefit from growth in the assets within their respective Fund as well as from growth in the amount of complex-wide assets managed by the Adviser.
The annual fund-level fee for each Fund, payable monthly, is calculated according to the following schedule:

Average Daily Managed Assets* |  | Insured California Premium Income (NPC) Insured California Premium Income 2 (NCL) California Premium Income (NCU) Fund-Level Fee Rate
For the first $125 million |  | .4500 | %
For the next $125 million |  | .4375 |
For the next $250 million |  | .4250 |
For the next $500 million |  | .4125 |
For the next $1 billion |  | .4000 |
For the next $3 billion |  | .3875 |
For managed assets over $5 billion |  | .3750 |

Average Daily Managed Assets* |  | California Dividend Advantage (NAC) California Dividend Advantage 2 (NVX) California Dividend Advantage 3 (NZH) Insured California Dividend Advantage (NKL) Insured California Tax-Free Advantage (NKX) Fund-Level Fee Rate
For the first $125 million |  | .4500 | %
For the next $125 million |  | .4375 |
For the next $250 million |  | .4250 |
For the next $500 million |  | .4125 |
For the next $1 billion |  | .4000 |
For managed assets over $2 billion |  | .3750 |

104 |  | Nuveen Investments

The annual complex-level fee for each Fund, payable monthly, is calculated according to the following schedule:

Complex-Level Managed Asset Breakpoint Level* |  | Effective Rate at Breakpoint Level
$55 billion |  | .2000 | %
$56 billion |  | .1996 |
$57 billion |  | .1989 |
$60 billion |  | .1961 |
$63 billion |  | .1931 |
$66 billion |  | .1900 |
$71 billion |  | .1851 |
$76 billion |  | .1806 |
$80 billion |  | .1773 |
$91 billion |  | .1691 |
$125 billion |  | .1599 |
$200 billion |  | .1505 |
$250 billion |  | .1469 |
$300 billion |  | .1445 |

* | For the fund-level and complex-level fees, managed assets include closed-end fund assets managed by the Adviser that are attributable to financial leverage. For these purposes, financial leverage includes the funds’ use of preferred stock and borrowings and certain investments in the residual interest certificates (also called inverse floating rate securities) in tender option bond (TOB) trusts, including the portion of assets held by a TOB trust that has been effectively financed by the trust’s issuance of floating rate securities, subject to an agreement by the Adviser as to certain funds to limit the amount of such assets for determining managed assets in certain circumstances. The complex-level fee is calculated based upon the aggregate daily managed assets of all Nuveen Funds that constitute “eligible assets.” Eligible assets do not include assets attributable to investments in other Nuveen Funds or assets in excess of $2 billion added to the Nuveen Fund complex in connection with the Adviser’s assumption of the management of the former First American Funds effective January 1, 2011. As of August 31, 2011, the complex-level fee rate for each of these Funds was .1781%.

The management fee compensates the Adviser for overall investment advisory and administrative services and general office facilities. The Adviser has entered into sub-advisory agreements with Nuveen Asset Management, LLC (the “Sub-Adviser”), a wholly-owned subsidiary of the Adviser, under which the Sub-Adviser manages the investment portfolios of the Funds. The Sub-Adviser is compensated for its services to the Funds from the management fees paid to the Adviser.
The Funds pay no compensation directly to those of its directors/trustees who are affiliated with the Adviser or to its officers, all of whom receive remuneration for their services to the Funds from the Adviser or its affiliates. The Board of Directors/Trustees has adopted a deferred compensation plan for independent directors/trustees that enables directors/trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from certain Nuveen-advised funds. Under the plan, deferred amounts are treated as though equal dollar amounts had been invested in shares of select Nuveen-advised funds.
For the first ten years of California Dividend Advantage 2’s (NVX) operations, the Adviser has agreed to reimburse the Fund, as a percentage of average daily managed assets, for fees and expenses in the amounts and for the time periods set forth below:

Year Ending March 31, |  |  | Year Ending March 31, |  |  |  |
2001* | .30 | % | 2007 |  |  | .25 | %
2002 | .30 |  | 2008 |  |  | .20 |
2003 | .30 |  | 2009 |  |  | .15 |
2004 | .30 |  | 2010 |  |  | .10 |
2005 | .30 |  | 2011 |  |  | .05 |
2006 | .30 |  |  |  |  |  |

* | From the commencement of operations.

The Adviser has not agreed to reimburse California Dividend Advantage 2 (NVX) for any portion of its fees and expenses beyond March 31, 2011.

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|  | Notes to
|  | Financial Statements (Unaudited) (continued)

For the first ten years of California Dividend Advantage 3’s (NZH) operations, the Adviser has agreed to reimburse the Fund, as a percentage of average daily managed assets, for fees and expenses in the amounts and for the time periods set forth below:

Year Ending September 30, |  |  | Year Ending September 30, |  |  |
2001* | .30 | % | 2007 |  |  | .25 | %
2002 | .30 |  | 2008 |  |  | .20 |
2003 | .30 |  | 2009 |  |  | .15 |
2004 | .30 |  | 2010 |  |  | .10 |
2005 | .30 |  | 2011 |  |  | .05 |
2006 | .30 |  |  |  |  |  |

* | From the commencement of operations.

The Adviser has not agreed to reimburse California Dividend Advantage 3 (NZH) for any portion of its fees and expenses beyond September 30, 2011.
For the first ten years of Insured California Dividend Advantage’s (NKL) operations, the Adviser has agreed to reimburse the Fund, as a percentage of average daily managed assets, for fees and expenses in the amounts and for the time periods set forth below:

Year Ending March 31, |  |  | Year Ending March 31, |
2002* | .30 | % | 2008 |  |  | .25 | %
2003 | .30 |  | 2009 |  |  | .20 |
2004 | .30 |  | 2010 |  |  | .15 |
2005 | .30 |  | 2011 |  |  | .10 |
2006 | .30 |  | 2012 |  |  | .05 |
2007 | .30 |  |  |  |  |  |

* | From the commencement of operations.

The Adviser has not agreed to reimburse Insured California Dividend Advantage (NKL) for any portion of its fees and expenses beyond March 31, 2012.
As of November 30, 2010, the Adviser is no longer reimbursing Insured California Tax-Free Advantage (NKX) for any portion of its fees and expenses.
8. New Accounting Pronouncements
Fair Value Measurements and Disclosures
On May 12, 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2011-04 (“ASU No. 2011-04”) modifying Topic 820, Fair Value Measurements and Disclosures. At the same time, the International Accounting Standards Board (“IASB”) issued International Financial Reporting Standard (“IFRS”) 13, Fair Value Measurement. The objective of the FASB and IASB is convergence of their guidance on fair value measurements and disclosures. Specifically, ASU No. 2011-04 requires reporting entities to disclose i) the amounts of any transfers between Level 1 and Level 2, the reasons for the transfers, ii) for Level 3 fair value measurements, a) quantitative information about significant unobservable inputs used, b) a description of the valuation processes used by the reporting entity and c) a narrative description of the sensitivity of the fair value measurement to changes in unobservable inputs if a change in those inputs might result in a significantly higher or lower fair value measurement. The effective date of ASU No. 2011-04 is for interim and annual periods beginning after December 15, 2011. At this time, management is evaluating the implications of this guidance and the impact it will have on the financial statement amounts and footnote disclosures, if any.

106 |  | Nuveen Investments

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

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

108 |  | Nuveen Investments

which portfolio management services the Advisor had provided directly to the Funds were transferred to the Sub-Advisor, a newly-organized, wholly-owned subsidiary of the Advisor consisting of largely the same investment personnel. Accordingly, in reviewing the portfolio management services provided to each Fund, the Board reviewed the materials provided by the Nuveen Investment Services Oversight Team analyzing, among other things, the Sub-Advisor’s investment team and changes thereto, organization and history, assets under management, Fund objectives and mandate, the investment team’s philosophy and strategies in managing the Fund, developments affecting the Sub-Advisor or Fund and Fund performance. The Independent Board Members also reviewed portfolio manager compensation arrangements to evaluate each Fund Adviser’s ability to attract and retain high quality investment personnel, preserve stability, and reward performance but not provide an incentive to take undue risks. In addition, the Board considered the Advisor’s execution of its oversight responsibilities over the Sub-Advisor. Given the importance of compliance, the Independent Board Members also considered Nuveen’s compliance program, including the report of the chief compliance officer regarding the Funds’ compliance policies and procedures.
In addition to advisory services, the Board considered the quality and extent of administrative and other non-investment advisory services the Advisor and its affiliates provide to the Funds, including product management, investment services (such as oversight of investment policies and procedures, risk management, and pricing), fund administration, oversight of service providers, shareholder services, administration of Board relations, regulatory and portfolio compliance, legal support, managing leverage and promoting an orderly secondary market for common shares.
In reviewing the services provided, the Board also reviewed materials describing various notable initiatives and projects the Advisor performed in connection with the closed-end fund product line. These initiatives included continued activities to refinance auction rate preferred securities; ongoing services to manage leverage that has become increasingly complex; continued secondary market offerings and share repurchases for certain funds; and continued communications efforts with shareholders, fund analysts and financial advisers. With respect to the latter, the Independent Board Members noted Nuveen’s continued commitment to supporting the secondary market for the common shares of its closed-end funds through a comprehensive secondary market communication program designed to raise investor and analyst awareness and understanding of closed-end funds. Nuveen’s support services included, among other things: continuing communications in support of refinancing efforts related to auction rate preferred securities; participating in conferences; communicating continually with closed-end fund analysts covering the Nuveen funds; providing marketing for the closed-end funds; share purchases; and maintaining and enhancing a closed-end fund website.
Based on their review, the Independent Board Members found that, overall, the nature, extent and quality of services provided to the respective Funds under each applicable Advisory Agreement were satisfactory.

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Annual Investment Management Agreement
Approval Process (Unaudited) (continued)
B. The Investment Performance of the Funds and Fund Advisers
The Board, including the Independent Board Members, reviewed and considered the performance history of each Fund over various time periods. The Board reviewed, among other things, each Fund’s historic investment performance as well as information comparing the Fund’s performance information with that of other funds (the “Performance Peer Group”) based on data provided by an independent provider of mutual fund data and with recognized and/or customized benchmarks.
The Board reviewed reports, including a comprehensive analysis of the Funds’ performance and the applicable investment team. In this regard, the Board reviewed each Fund’s total return information compared to its Performance Peer Group for the quarter, one-, three- and five-year periods ending December 31, 2010 and for the same periods ending March 31, 2011. In addition, the Board reviewed each Fund’s total return information compared to recognized and/or customized benchmarks for the quarter, one- and three-year periods ending December 31, 2010 and for the same periods ending March 31, 2011. The Independent Board Members also reviewed historic premium and discount levels, including a summary of actions taken to address or discuss other developments affecting the secondary market discounts of various funds. This information supplemented the Fund performance information provided to the Board at each of its quarterly meetings.
In reviewing performance comparison information, the Independent Board Members recognized that the usefulness of the comparisons of the performance of certain funds with the performance of their respective Performance Peer Group may be limited because the Performance Peer Group may not adequately represent the objectives and strategies of the applicable funds or may be limited in size or number. In this regard, the Independent Board Members noted that the Performance Peer Groups of the Nuveen Insured California Premium Income Municipal Fund, Inc. (the “Insured Premium Income Fund”), the Nuveen Insured California Dividend Advantage Municipal Fund (the “Insured Dividend Advantage Fund”), the Nuveen Insured California Tax-Free Advantage Municipal Fund (the “Insured Tax-Free Advantage Fund”) and the Nuveen Insured California Premium Income Municipal Fund 2, Inc. (the “Insured Premium Income Fund 2”) were classified as having significant differences from such Funds based on various considerations such as special fund objectives, potential investable universe and the composition of the peer set (e.g., the number and size of competing funds and number of competing managers). The Independent Board Members also noted that the investment experience of a particular shareholder in the Nuveen funds will vary depending on when such shareholder invests in the applicable fund, the class held (if multiple classes are offered) and the performance of the fund (or respective class) during that shareholder’s investment period.
In considering the results of the comparisons, the Independent Board Members observed, among other things, that (a) the Nuveen California Premium Income Municipal Fund (the “Premium Income Fund”) and the Nuveen California Dividend Advantage Municipal Fund 2 had demonstrated generally favorable performance in comparison to peers, performing in the first or second quartile over various periods and (b) the Nuveen California Dividend Advantage Municipal Fund 3 had demonstrated satisfactory performance compared to its peers, performing in the second or third quartile over various

110 |  | Nuveen Investments

periods. They also noted that the Nuveen California Dividend Advantage Municipal Fund lagged its peers and/or benchmarks over various periods. With respect to Nuveen funds that lagged their peers and/or benchmarks over various periods, the Independent Board Members considered the factors affecting performance and any steps taken or proposed to address performance issues, and were satisfied with the process followed. With respect to the Funds that, as noted above, had significant differences with their Performance Peer Groups, the Independent Board Members considered such Funds’ performance compared to their benchmarks. In this regard, the Independent Board Members noted that the Insured Premium Income Fund, the Insured Dividend Advantage Fund, the Insured Tax-Free Advantage Fund and the Insured Premium Income Fund 2 each underperformed their benchmarks in the one- and three-year periods.
With respect to any Nuveen funds that underperformed their peers and/or benchmarks from time to time, the Board monitors such funds closely and considers any steps necessary or appropriate to address such issues.
Based on their review, the Independent Board Members determined that each Fund’s investment performance had been satisfactory.

C. | Fees, Expenses and Profitability
| 1. Fees and Expenses
| The Board evaluated the management fees and expenses of each Fund reviewing, among other things, such Fund’s gross management fees, net management fees and net expense ratios in absolute terms as well as compared to the fee and expenses of a comparable universe of funds based on data provided by an independent fund data provider (the “Peer Universe”) and in certain cases, to a more focused subset of funds in the Peer Universe (the “Peer Group”) and any expense limitations.
| The Independent Board Members further reviewed the methodology regarding the construction of the applicable Peer Universe and Peer Group (if any). In reviewing the comparisons of fee and expense information, the Independent Board Members took into account that in certain instances various factors such as: the asset level of a fund relative to peers; the limited size and particular composition of the Peer Universe or Peer Group; the investment objectives of the peers; expense anomalies; changes in the funds comprising the Peer Universe or Peer Group from year to year; levels of reimbursement; the timing of information used; the differences in the type and use of leverage; and differences in the states reflected in the Peer Universe or Peer Group may impact the comparative data thereby limiting the ability to make a meaningful comparison with peers, including for the Insured Dividend Advantage Fund and the Insured Tax-Free Advantage Fund.
| In reviewing the fee schedule for a Fund, the Independent Board Members also considered the fund-level and complex-wide breakpoint schedules (described in further detail below) and any fee waivers and reimbursements provided by Nuveen (applicable, in particular, for certain closed-end funds launched since 1999). In reviewing fees and expenses, the Board considered the expenses and fees to be higher if they were over 10 basis points higher, slightly higher if they were 6 to 10

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Annual Investment Management Agreement
Approval Process (Unaudited) (continued)

| basis points higher, in line if they were within 5 basis points higher than the peer average and below if they were below the peer average of the Peer Group (if available) or Peer Universe if there was no separate Peer Group. The Independent Board Members noted that the Premium Income Fund, the Insured Premium Income Fund and the Insured Premium Income Fund 2 had higher net management fees than their peer average and a slightly higher or higher net expense ratio compared to their peer average. They observed that each of the other Funds had net management fees and net expense ratios below or in line with their peer averages. Based on their review of the fee and expense information provided, the Independent Board Members determined that each Fund’s management fees were reasonable in light of the nature, extent and quality of services provided to the Fund. 2. Comparisons with the Fees of Other Clients The Independent Board Members further reviewed information regarding the nature of services and fee rates offered by the Advisor to other clients, including municipal separately managed accounts and passively managed exchange traded funds (ETFs) sub-advised by the Advisor. In evaluating the comparisons of fees, the Independent Board Members noted that the fee rates charged to the Funds and other clients vary, among other things, because of the different services involved and the additional regulatory and compliance requirements associated with registered investment companies, such as the Funds. Accordingly, the Independent Board Members considered the differences in the product types, including, but not limited to, the services provided, the structure and operations, product distribution and costs thereof, portfolio investment policies, investor profiles, account sizes and regulatory requirements. The Independent Board Members noted, in particular, that the range of services provided to the Funds (as discussed above) is much more extensive than that provided to separately managed accounts. Given the inherent differences in the products, particularly the extensive services provided to the Funds, the Independent Board Members believe such facts justify the different levels of fees. In considering the fees of the Sub-Advisor, the Independent Board Members also considered the pricing schedule or fees that the Sub-Advisor charges for similar investment management services for other Nuveen funds. 3. Profitability of Fund Advisers In conjunction with its review of fees, the Independent Board Members also considered the profitability of Nuveen for its advisory activities (which incorporated Nuveen’s wholly-owned affiliated sub-advisers) and its financial condition. The Independent Board Members reviewed the revenues and expenses of Nuveen’s advisory activities for the last two years, the allocation methodology used in preparing the profitability data and an analysis of the key drivers behind the changes in revenues and expenses that impacted profitability in 2010. The Independent Board Members noted this information supplemented the profitability information requested and received during the year to help keep them apprised of developments affecting profitability (such as changes in fee waivers and expense reimbursement commitments). In this regard, the Independent Board Members

112 |  | Nuveen Investments

| noted that they have an Independent Board Member serve as a point person to review and keep them apprised of changes to the profitability analysis and/or methodologies during the year. The Independent Board Members also considered Nuveen’s revenues for advisory activities, expenses, and profit margin compared to that of various unaffiliated management firms with similar amounts of assets under management and relatively comparable asset composition prepared by Nuveen. In reviewing profitability, the Independent Board Members recognized the subjective nature of determining profitability which may be affected by numerous factors including the allocation of expenses. Further, the Independent Board Members recognized the difficulties in making comparisons as the profitability of other advisers generally is not publicly available and the profitability information that is available for certain advisers or management firms may not be representative of the industry and may be affected by, among other things, the adviser’s particular business mix, capital costs, types of funds managed and expense allocations. Notwithstanding the foregoing, the Independent Board Members reviewed Nuveen’s methodology and assumptions for allocating expenses across product lines to determine profitability. In reviewing profitability, the Independent Board Members recognized Nuveen’s investment in its fund business. Based on their review, the Independent Board Members concluded that the Advisor’s level of profitability for its advisory activities was reasonable in light of the services provided. In evaluating the reasonableness of the compensation, the Independent Board Members also considered other amounts paid to a Fund Adviser by the Funds as well as any indirect benefits (such as soft dollar arrangements, if any) the Fund Adviser and its affiliates receive, or are expected to receive, that are directly attributable to the management of the Funds, if any. See Section E below for additional information on indirect benefits a Fund Adviser may receive as a result of its relationship with the Funds. Based on their review of the overall fee arrangements of each Fund, the Independent Board Members determined that the advisory fees and expenses of the respective Fund were reasonable.

D. Economies of Scale and Whether Fee Levels Reflect These Economies of Scale
With respect to economies of scale, the Independent Board Members have recognized the potential benefits resulting from the costs of a fund being spread over a larger asset base, although economies of scale are difficult to measure and predict with precision, particularly on a fund-by-fund basis. One method to help ensure the shareholders share in these benefits is to include breakpoints in the advisory fee schedule. Generally, management fees for funds in the Nuveen complex are comprised of a fund-level component and a complex-level component, subject to certain exceptions. Accordingly, the Independent Board Members reviewed and considered the applicable fund-level breakpoints in the advisory fee schedules that reduce advisory fees as asset levels increase. Further, the Independent Board Members noted that although closed-end funds may from time-to-time make additional share offerings, the growth of their assets will occur primarily through the appreciation of such funds’ investment portfolio.

Nuveen Investments |  | 113

Annual Investment Management Agreement
Approval Process (Unaudited) (continued)
In addition to fund-level advisory fee breakpoints, the Board also considered the Funds’ complex-wide fee arrangement. Pursuant to the complex-wide fee arrangement, the fees of the funds in the Nuveen complex are generally reduced as the assets in the fund complex reach certain levels. The complex-wide fee arrangement seeks to provide the benefits of economies of scale to fund shareholders when total fund complex assets increase, even if assets of a particular fund are unchanged or have decreased. The approach reflects the notion that some of Nuveen’s costs are attributable to services provided to all its funds in the complex and therefore all funds benefit if these costs are spread over a larger asset base.
Based on their review, the Independent Board Members concluded that the breakpoint schedules and complex-wide fee arrangement were acceptable and reflect economies of scale to be shared with shareholders when assets under management increase.
E. Indirect Benefits
In evaluating fees, the Independent Board Members received and considered information regarding potential “fall out” or ancillary benefits the respective Fund Adviser or its affiliates may receive as a result of its relationship with each Fund. In this regard, the Independent Board Members considered any revenues received by affiliates of the Advisor for serving as agent at Nuveen’s trading desk and as co-manager in initial public offerings of new closed-end funds.
In addition to the above, the Independent Board Members considered whether the Fund Advisers received any benefits from soft dollar arrangements whereby a portion of the commissions paid by a Fund for brokerage may be used to acquire research that may be useful to the Fund Adviser in managing the assets of the Funds and other clients. The Independent Board Members recognized that each Fund Adviser has the authority to pay a higher commission in return for brokerage and research services if it determines in good faith that the commission paid is reasonable in relation to the value of the brokerage and research services provided. Nevertheless, the Independent Board Members noted that commissions are generally not paid in connection with municipal securities transactions typically executed on a principal basis.
Based on their review, the Independent Board Members concluded that any indirect benefits received by a Fund Adviser as a result of its relationship with the Funds were reasonable and within acceptable parameters.
F. Other Considerations
The Independent Board Members did not identify any single factor discussed previously as all-important or controlling. The Board Members, including the Independent Board Members, unanimously concluded that the terms of each Advisory Agreement are fair and reasonable, that the respective Fund Adviser’s fees are reasonable in light of the services provided to each Fund and that the Advisory Agreements be renewed.

114 |  | Nuveen Investments

Reinvest Automatically,
Easily and Conveniently
Nuveen makes reinvesting easy. A phone call is all it takes to set up your reinvestment account.
Nuveen Closed-End Funds Automatic Reinvestment Plan
Your Nuveen Closed-End Fund allows you to conveniently reinvest distributions in additional Fund shares.
By choosing to reinvest, you’ll be able to invest money regularly and automatically, and watch your investment grow through the power of compounding. Just like distributions in cash, there may be times when income or capital gains taxes may be payable on distributions that are reinvested.
It is important to note that an automatic reinvestment plan does not ensure a profit, nor does it protect you against loss in a declining market.
Easy and convenient
To make recordkeeping easy and convenient, each month you’ll receive a statement showing your total distributions, the date of investment, the shares acquired and the price per share, and the total number of shares you own.
How shares are purchased
The shares you acquire by reinvesting will either be purchased on the open market or newly issued by the Fund. If the shares are trading at or above net asset value at the time of valuation, the Fund will issue new shares at the greater of the net asset value or 95% of the then-current market price. If the shares are trading at less than net asset value, shares for your account will be purchased on the open market. If the Plan Agent begins purchasing Fund shares on the open market while shares are trading below net asset value, but the Fund’s shares subsequently trade at or above their net asset value before the Plan Agent is able to complete its purchases, the Plan Agent may cease open-market purchases and may invest the uninvested portion of the distribution in newly-issued Fund shares at a price equal to the greater of the shares’ net asset value or 95% of the shares’ market value on the last business day immediately prior to the purchase date. Distributions received to purchase shares in the open market will normally be invested shortly after the distribution payment date. No interest will be paid on distributions awaiting reinvestment. Because the market price of the shares may increase before purchases are completed, the average purchase price per share may

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Reinvest Automatically,
Easily and Conveniently (continued)
exceed the market price at the time of valuation, resulting in the acquisition of fewer shares than if the distribution had been paid in shares issued by the Fund. A pro rata portion of any applicable brokerage commissions on open market purchases will be paid by Plan participants. These commissions usually will be lower than those charged on individual transactions.
Flexible
You may change your distribution option or withdraw from the Plan at any time, should your needs or situation change.
You can reinvest whether your shares are registered in your name, or in the name of a brokerage firm, bank, or other nominee. Ask your investment advisor if his or her firm will participate on your behalf. Participants whose shares are registered in the name of one firm may not be able to transfer the shares to another firm and continue to participate in the Plan.
The Fund reserves the right to amend or terminate the Plan at any time. Although the Fund reserves the right to amend the Plan to include a service charge payable by the participants, there is no direct service charge to participants in the Plan at this time.
Call today to start reinvesting distributions
For more information on the Nuveen Automatic Reinvestment Plan or to enroll in or withdraw from the Plan, speak with your financial advisor or call us at (800) 257-8787.

116 |  | Nuveen Investments

Glossary of Terms
Used in this Report

■ | Auction Rate Bond: An auction rate bond is a security whose interest payments are adjusted periodically through an auction process, which process typically also serves as a means for buying and selling the bond. Auctions that fail to attract enough buyers for all the shares offered for sale are deemed to have “failed,” with current holders receiving a formula-based interest rate until the next scheduled auction.
■ | Average Annual Total Return: This is a commonly used method to express an investment’s performance over a particular, usually multi-year time period. It expresses the return that would have been necessary each year to equal the investment’s actual cumulative performance (including change in NAV or market price and reinvested dividends and capital gains distributions, if any) over the time period being considered.
■ | Average Effective Maturity: The market-value-weighted average of the effective maturity dates of the individual securities including cash. In the case of a bond that has been advance-refunded to a call date, the effective maturity is the date on which the bond is scheduled to be redeemed using the proceeds of an escrow account. In most other cases the effective maturity is the stated maturity date of the security.
■ | Effective Leverage: Effective leverage is a Fund’s effective economic leverage, and includes both structural leverage and the leverage effects of certain derivative investments in the Fund’s portfolio. Currently, the leverage effects of Tender Option Bond (TOB) inverse floater holdings are included in effective leverage values, in addition to any structural leverage.
■ | Inverse Floaters: Inverse floating rate securities, also known as inverse floaters, are created by depositing a municipal bond, typically with a fixed interest rate, into a special purpose trust created by a broker-dealer. This trust, in turn, (a) issues floating rate certificates typically paying short-term tax-exempt interest rates to third parties in amounts equal to some fraction of the deposited bond’s par amount or market value, and (b) issues an inverse floating rate certificate (sometimes referred to as an “inverse floater”) to an investor (such as a Fund) interested in gaining investment exposure to a long-term municipal bond. The income received by the holder of the inverse floater varies inversely with the short-term rate paid to the floating rate certificates’ holders, and in most circumstances the holder of the inverse floater bears substantially all of the underlying bond’s downside investment risk. The holder of the inverse floater typically also benefits disproportionately from any potential appreciation of the underlying bond’s value. Hence, an inverse floater essentially represents an investment in the underlying bond on a leveraged basis.
■ | Leverage: Using borrowed money to invest in securities or other assets.

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Glossary of Terms
Used in this Report (continued)

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

118 |  | Nuveen Investments

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

Nuveen Investments |  | 119

Notes

120 |  | Nuveen Investments

Notes

Nuveen Investments |  | 121

Notes

122 |  | Nuveen Investments

Other Useful Information
Board of
Directors/Trustees
John P. Amboian
Robert P. Bremner
Jack B. Evans
William C. Hunter
David J. Kundert
William J. Schneider
Judith M. Stockdale
Carole E. Stone
Virginia L. Stringer
Terence J. Toth
Fund Manager
Nuveen Fund Advisors, Inc.
333 West Wacker Drive
Chicago, IL 60606
Custodian
State Street Bank
& Trust Company
Boston, MA
Transfer Agent and
Shareholder Services
State Street Bank &
Trust Company
Nuveen Funds
P.O. Box 43071
Providence, RI 02940-3071
(800) 257-8787
Legal Counsel
Chapman and Cutler LLP
Chicago, IL
Independent Registered
Public Accounting Firm
Ernst & Young
LLP Chicago, IL
Quarterly Portfolio of Investments and Proxy Voting Information
You may obtain (i) each Fund’s quarterly portfolio of investments, (ii) information regarding how each Fund voted proxies relating to portfolio securities held during the most recent twelve-month period ended June 30, and (iii) a description of the policies and procedures that each Fund used to determine how to vote proxies relating to portfolio securities without charge, upon request, by calling Nuveen Investments toll-free at (800) 257-8787 or on Nuveen’s website at www.nuveen.com.
You may also obtain this and other Fund information directly from the Securities and Exchange Commission (SEC). The SEC may charge a copying fee for this information. Visit the SEC on-line at http://www.sec.gov or in person at the SEC’s Public Reference Room in Washington, D.C. Call the SEC at (202) 942-8090 for room hours and operation. You may also request Fund information by sending an e-mail request to publicinfo@sec.gov or by writing to the SEC’s Public References Section at 100 F Street NE, Washington, D.C. 20549.
CEO Certification Disclosure
Each Fund’s Chief Executive Officer (CEO) has submitted to the New York Stock Exchange (NYSE) the annual CEO certification as required by Section 303A.12(a) of the NYSE Listed Company Manual.
Each Fund has filed with the SEC the certification of its Chief Executive Officer and Chief Financial Officer required by Section 302 of the Sarbanes-Oxley Act.
Common and Preferred Share Information
Each Fund intends to repurchase and/or redeem shares of its own common and/or auction rate preferred stock in the future at such times and in such amounts as is deemed advisable. During the period covered by this report, the Funds repurchased and/or redeemed shares of their common and/or auction rate preferred stock as shown in the accompanying table.

Fund | Common Shares Repurchased | Preferred Shares Redeemed |
NPC | — | — |
NCL | — | — |
NCU | — | — |
NAC | — | 5,421 |
NVX | — | 1,598 |
NZH | — | 2,780 |
NKL | — | 4,150 |
NKX | — | — |

Any future repurchases will be reported to shareholders in the next annual or semi-annual report.

Nuveen Investments |  | 123

Nuveen Investments:
Serving Investors for Generations
Since 1898, financial advisors and their clients have relied on Nuveen Investments to provide dependable investment solutions through continued adherence to proven, long-term investing principles. Today, we offer a range of high quality equity and fixed-income solutions designed to be integral components of a well-diversified core portfolio.
Focused on meeting investor needs.
Nuveen Investments is a global investment management firm that seeks to help secure the long-term goals of institutions and high net worth investors as well as the consultants and financial advisors who serve them. We market our growing range of specialized investment solutions under the high-quality brands of HydePark, NWQ, Nuveen Asset Management, Santa Barbara, Symphony, Tradewinds and Winslow Capital. In total, Nuveen Investments managed approximately $210 billion of assets as of June 30, 2011.
Find out how we can help you.
To learn more about how the products and services of Nuveen Investments may be able to help you meet your financial goals, talk to your financial advisor, or call us at (800) 257-8787. Please read the information provided carefully before you invest. Investors should consider the investment objective and policies, risk considerations, charges and expenses of any investment carefully. Where applicable, be sure to obtain a prospectus, which contains this and other relevant information. To obtain a prospectus, please contact your securities representative or Nuveen Investments, 333 W. Wacker Dr., Chicago, IL 60606. Please read the prospectus carefully before you invest or send money.
Learn more about Nuveen Funds at: www.nuveen.com/cef

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Distributed by
Nuveen Securities, LLC
333 West Wacker Drive
Chicago, IL 60606
www.nuveen.com
ESA-B-0811D

ITEM 2. CODE OF ETHICS.
Not applicable to this filing.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable to this filing.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable to this filing.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable to this filing.
ITEM 6. SCHEDULE OF INVESTMENTS.
(a) See Portfolio of Investments in Item 1.
(b) Not applicable.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable to this filing.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable to this filing.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant's Board of Directors or Trustees implemented after the registrant last provided disclosure in response to this Item.
ITEM 11. CONTROLS AND PROCEDURES.

(a) | The registrant's principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the "1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of the controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (the "Exchange Act")(17 CFR 240.13a-15(b) or 240.15d-15(b)).

(b) | There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.

ITEM 12. EXHIBITS.
File the exhibits listed below as part of this Form.

(a)(1) | Any code of ethics, or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy the Item 2 requirements through filing of an exhibit: Not applicable to this filing.

(a)(2) | A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the 1940 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: See Ex-99.CERT attached hereto.

(a)(3) | Any written solicitation to purchase securities under Rule 23c-1 under the 1940 Act (17 CFR 270.23c-1) sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons: Not applicable.

(b) | If the report is filed under Section 13(a) or 15(d) of the Exchange Act, provide the certifications required by Rule 30a-2(b) under the 1940 Act (17 CFR 270.30a-2(b)); Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR 240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished pursuant to this paragraph will not be deemed "filed" for purposes of Section 18 of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of that section. Such certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Exchange Act, except to the extent that the registrant specifically incorporates it by reference: See Ex-99.906 CERT attached hereto.

SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Nuveen Insured California Tax-Free Advantage Municipal Fund
By (Signature and Title) /s/ Kevin J. McCarthy
Kevin J. McCarthy
(Vice President and Secretary)
Date: November 7, 2011
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By (Signature and Title) /s/ Gifford R. Zimmerman
Gifford R. Zimmerman
Chief Administrative Officer
(principal executive officer)
Date: November 7, 2011
By (Signature and Title) /s/ Stephen D. Foy
Stephen D. Foy
Vice President and Controller
(principal financial officer)
Date: November 7, 2011