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 811-06623

 

Nuveen California Select Tax-Free Income Portfolio

(Exact name of registrant as specified in charter)

 

Nuveen Investments

333 West Wacker Drive

Chicago, IL 60606

(Address of principal executive offices) (Zip code)

 

Mark L. Winget

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: Date: February 28

 

Date of reporting period: February 28, 2022

 

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

Chair’s Letter to Shareholders 4
Important Notices 5
Portfolio Manager’s Comments 6
Fund Leverage 9
Common Share Information 11
Performance Overview and Holding Summaries 13
Shareholder Meeting Report 21
Report of Independent Registered Public Accounting Firm 22
Portfolios of Investments 24
Statement of Assets and Liabilities 64
Statement of Operations 65
Statement of Changes in Net Assets 66
Statement of Cash Flows 68
Financial Highlights 70
Notes to Financial Statements 75
Shareholder Update 90
Important Tax Information 117
Additional Fund Information 118
Glossary of Terms Used in this Report 119
Board Members & Officers 121

 

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 Chair’s Letter
to Shareholders

 

 

Dear Shareholders,

In February, the world witnessed Russia invade Ukraine. We are now almost two months into the conflict and are beginning to see the scale of the humanitarian crisis and the economic impact caused by this event.

Given the fluidity of the situation, market uncertainty is currently elevated. Economic conditions were already challenging prior to the invasion, with inflation lingering at multi-decade highs, interest rates expected to continue rising, economic growth moderating from the post-pandemic recovery, and weakening performance across equity markets and some bond market segments. The Russia-Ukraine conflict has accelerated these trends in the short term. The spike in geopolitical risks led to surging prices for oil and other hard and soft commodities, driving both inflation and recession risks higher. The U.S. Federal Reserve (Fed) and other central banks now face an even more difficult task of slowing inflation without pulling the economy into recession. As anticipated, the Fed began the rate hiking cycle in March 2022, raising its short-term rate by 0.25% from near zero for the first time since the pandemic was declared two years ago and now signaling rate increases of 0.5% in the near future. Where the Russia-Ukraine conflict goes from here, how inflation impacts economic growth and the Fed’s response to changing economic conditions are difficult to forecast.

In the meantime, while markets will likely continue fluctuating with the daily headlines, we encourage investors to keep a long-term perspective. To learn more about how well your portfolio is aligned to your time horizon, risk tolerance and investment goals, consider reviewing it with your financial professional.

On behalf of the other members of the Nuveen Fund Board, I look forward to continuing to earn your trust in the months and years ahead.

 

 

Terence J. Toth
Chair of the Board
April 21, 2022

 

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Important Notices

For Shareholders of Nuveen California Municipal Value Fund (NCA)

Fund Reorganization

Effective prior to the opening of business on March 8, 2021, Nuveen California Municipal Value Fund 2 (NCB) was reorganized into NCA (the “Reorganizations”). Refer to Note 1 and Note 10 of the Notes to Financial Statements within this report for further details on the Reorganization.

For Shareholders of Nuveen California Select Tax-Free Income Portfolio (NXC)

Change in Fiscal and Tax Year End

Effective February 24, 2022, NXC’s fiscal and tax year end changed from March 31 to February 28/29 as approved by the Fund’s Board of Trustees. As a result, NXC has prepared an annual report for the period April 1, 2021 through February 28, 2022 (the “eleven months ended February 28, 2022”).

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Portfolio Manager’s Comments

Nuveen California Quality Municipal Income Fund (NAC)

Nuveen California ATM-Free Quality Municipal Income Fund (NKX)

Nuveen California Municipal Value Fund (NCA)

Nuveen California Select Tax-Free Income Portfolio (NXC)

These Funds feature portfolio management by Nuveen Asset Management, LLC (NAM), an affiliate of Nuveen Fund Advisors, LLC, the Funds’ investment adviser. Portfolio manager Scott R. Romans, PhD, reviews U.S. economic and market conditions, key investment strategies and the twelve-month performance of these Nuveen California Municipal Funds.

For more information on the Funds’ investment objectives and policies, please refer to the Shareholder Update section at the end of the report.

What factors affected the U.S. economy and municipal bond markets during the twelve-month reporting period ended February 28, 2022?

The U.S. economic recovery remained on course over the twelve-month reporting period, despite setbacks from the COVID-19 virus, higher-than-expected inflation readings and increasing geopolitical tensions in Eastern Europe. Since the pandemic reached the U.S. in early 2020, the federal government has enacted $5.3 trillion in crisis-related aid and the U.S. Federal Reserve (Fed) kept borrowing rates low for businesses and individuals and kept the credit system stable while the jobs market and economy recovered from the pandemic shock. These measures, along with increasing vaccinations and improved treatments, helped the economy to reopen and activity to rebound during 2021, despite additional COVID-19 surges caused by new, more contagious variants. U.S. gross domestic product (GDP) rose at an annualized 6.9% in the fourth quarter of 2021, accelerating from 2.3% in the third quarter when the delta variant weighed on economic activity, according to the Bureau of Economic Analysis third estimate. Also according to the third estimate, GDP grew 5.7% in 2021 overall, rebounding from the contraction of -3.4% in 2020.

The return of consumer demand put upward pressure on inflation. However, as supply chains remained under stress and labor shortages continued, in part because of COVID-19 resurgences around the world, inflation appeared to be more durable than initially expected. The Fed responded by reducing its pandemic-era support programs and signaled that rate increases were likely in 2022 (which did materialize in March 2022, after the close of this reporting period, with a 0.25% increase in the Fed’s target interest rate). Interest rate and stock price volatility increased as markets considered whether the Fed could cool inflation without pulling the economy into recession. While some pandemic-related risks appeared to be receding, Russia’s invasion of Ukraine in late February 2022 brought forth another large-scale human tragedy with significant economic consequences. Inflation pressures rose

 

This material is not intended to be a recommendation or investment advice, does not constitute a solicitation to buy, sell or hold a security or an investment strategy and is not provided in a fiduciary capacity. The information provided does not take into account the specific objectives or circumstances of any particular investor, or suggest any specific course of action. Investment decisions should be made based on an investor’s objectives and circumstances and in consultation with his or her advisors.

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.

For financial reporting purposes, the ratings disclosed are the highest rating given by one of the following national rating agencies: Standard & Poor’s Group (S&P), Moody’s Investors Service, Inc. (Moody’s) or Fitch, Inc. (Fitch). This treatment of split-rated securities may differ from that used for other purposes, such as for Fund investment policies. Credit ratings are subject to change. AAA, AA, A and BBB are investment grade ratings, while BB, B, CCC, CC, C and D are below investment grade ratings. Holdings designated N/R are not rated by these national rating agencies.

Bond insurance guarantees only the payment of principal and interest on the bond when due, and not the value of the bonds themselves, which will fluctuate with the bond market and the financial success of the issuer and the insurer. Insurance relates specifically to the bonds in the portfolio and not to the share prices of a Fund. No representation is made as to the insurers’ ability to meet their commitments.

Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this section.

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further on anticipated supply disruptions in energy, metals and grains, downside risks to global economic growth increased, and economic sanctions from Western countries sought to block Russia’s access to the global financial system. A more uncertain inflation and economic outlook also made the path toward monetary policy normalization more uncertain for the Fed and other central banks, contributing to elevated market volatility toward the end of the reporting period.

The broad municipal market declined slightly over the twelve-month reporting period. Municipal yields rose but not uniformly across the maturity spectrum, resulting in a flatter yield curve overall but with intermediate maturities outperforming the short and long ends of the curve. Demand for municipal debt remained remarkably strong throughout 2021, but outflows followed in early 2022 as dealers reduced their inventories in the higher volatility environment. Nevertheless, credit spreads were generally stable as municipal fundamentals were strong and the municipal market remained relatively insulated from geopolitical concerns abroad.

What were the economic and market environments in California during the twelve-month reporting period ended February 28, 2022?

California’s $3.1 trillion economy is the largest in the United States and has continued its post-pandemic recovery. The state’s unemployment rate was 5.4% as of February 2022, higher than the nation’s 3.8% rate. According to the S&P CoreLogic Case-Shiller Index, home prices in San Diego, Los Angeles and San Francisco rose 25.9%, 19.3% and 18.8%, respectively, over the twelve months ended December 2021 (the most recent data available at the time this report was prepared), compared with an average increase of 18.8% nationally. The Fiscal Year 2022 (July 1, 2021 to June 30, 2022) general fund budget for the state totals $196.4 billion, which is 18.3% higher than the revised Fiscal Year 2021 budget. The Fiscal Year 2022 budget projected a $47 billion surplus driven by revenues that were significantly higher and state costs that were lower than initially expected. The proposed Fiscal Year 2022-2023 (July 1, 2022 to June 30, 2023) budget of $213.1 billion represents a 1.5% increase over the revised Fiscal Year 2022 budget and projects a $45.7 billion surplus, of which 86% is expected to be allocated to one-time spending: health care, homelessness, housing, schools, COVID-19 and climate change. As of March 2022, Standard & Poor’s (S&P) affirmed its AA- rating on California general obligation (GO) debt, but S&P changed the outlook from stable to positive based on “the state’s projection of a new long-term structural balance and high reserves, even assuming currently high capital gains tax and federal aid revert to historically lower levels in later years.” Moody’s Investors Service affirmed its state GO rating of Aa2 with a stable outlook. California municipal bond supply totaled $79.1 billion for the twelve-month period ended February 28, 2022, a 6.4% increase from the same period a year earlier.

What key strategies were used to manage the Funds during the twelve-month reporting period ended February 28, 2022?

Each Fund seeks to provide current income exempt from both regular federal and California state income taxes, and in the case of NKX the alternative minimum tax (“AMT”) 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. To the extent that the Funds invest in bonds of municipal issuers located in other states, each Fund may have income that is not exempt from state personal income tax. NCA’s use of tender option bonds to more efficiently implement its investment strategy may create up to 10% effective leverage (although the Fund had no such leverage at the end of the reporting period).

The rising interest rate environment in this reporting period provided an opportunity for the municipal investment team to buy lower rated, higher yielding credits in the Funds at wider credit spreads and with incrementally higher yields. These new purchases were funded by selling higher grade, lower yielding paper that had been bought when prevailing interest rates were lower, for the purposes of keeping the Funds fully invested and holding a more liquid investment that could be sold when longer-term opportunities arise. The Funds also used the proceeds from called and maturing bonds to buy new bonds. As a result, the Funds’ holdings in BBB, BB and B rated bonds increased, while exposures to AAA, AA and A rated bonds decreased over this reporting period. Additionally, as interest rates rose in the early months of 2022, the Funds sold some lower book yield positions at a loss to reinvest in more attractive, higher book yield opportunities. The investment team implemented this approach to enhance the Funds’ income earning capability and seek to make the Funds more tax efficient.

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From a sector standpoint, positioning remained relatively stable overall. The more noticeable changes included an increase in multi-family housing holdings, specifically in workforce housing - a new program that finances affordable housing for moderate/middle income families. The workforce housing sector was an area of significant new issuance in the California tax-exempt market during the reporting period and the Funds participated in several of these deals. The Funds saw a decrease in tobacco exposure, driven by refundings and restructurings in the sector, as well as declines in utilities and tax supported debt allocations, in which the Funds sold some of the placeholder bonds to rotate into higher yielding, lower rated credits. Elevated refunding activity during the reporting period resulted in a “passive” increase in the Funds’ allocations to pre-refunded bonds.

How did the Funds perform during the twelve-month reporting period ended February 28, 2022, and for NXC the eleven-month abbreviated reporting period ended February 28, 2022?

For the twelve months ended February 28, 2022, the Nuveen California Municipal Value Fund (NCA) outperformed the S&P Municipal Bond California Index, while Nuveen California Quality Municipal Income Fund (NAC) and Nuveen California ATM-Free Quality Municipal Income Fund (NKX) underperformed the S&P Municipal Bond California Index. For the eleven months ended February 28, 2022, the Nuveen California Select Tax-Free Income Portfolio (NXC) performed in-line with the S&P Municipal Bond California Index. For the purposes of this Performance Commentary, references to relative performance are in comparison to the S&P Municipal Bond California Index.

The main factors that contributed positively to the Funds’ relative performance were individual security selection, credit ratings allocations and sector allocations (except in NXC where sector allocation was a detractor from relative performance). In particular, the Funds’ overweight allocations to lower rated credits and sectors added the most to relative performance, especially in BBB rated and below investment-grade rated bonds, which outperformed during the reporting period.

Offsetting these positive relative performance factors were duration and yield curve positioning, including whether or not the Funds used leverage. The Funds’ longer duration positioning detracted from relative performance as longer duration bonds underper-formed the market during the reporting period. The Funds continued to emphasize longer duration (12 years and longer) bonds because their incrementally higher yields help support the Funds’ income earnings capability and have contributed to the Funds’ total returns over the long term. Additionally, NAC’s and NKX’s use of leverage, as part of the Funds’ duration management strategy, also weighed on relative performance versus the benchmark and was the main reason for the two Funds’ relative underperformance. In contrast, NCA and NXC do not use leverage and performed in-line or better versus the benchmark during the reporting period. Leverage is discussed in more detail later in the Fund Leverage section of this report.

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Fund Leverage

IMPACT OF THE FUNDS’ LEVERAGE STRATEGIES ON PERFORMANCE

One important factor impacting the returns of the Funds’ common shares relative to their comparative benchmarks was the Funds’ use of leverage through their issuance of preferred shares and/or investments in inverse floating rate securities, which represent leveraged investments in underlying bonds. The Funds use leverage because our research has shown that, over time, leveraging provides opportunities for additional income. The opportunity arises when short-term rates that the Fund pays on its leveraging instruments are lower than the interest the Fund earns on its portfolio of long-term bonds that it has bought with the proceeds of that leverage. This has been particularly true in the recent market environment where short-term rates have been low by historical standards.

However, use of leverage can expose Fund common shares to additional price volatility. When a Fund uses leverage, the Fund’s common shares will experience a greater increase in their net asset value if the municipal bonds acquired through the use of leverage increase in value, but will also experience a correspondingly larger decline in their net asset value if the bonds acquired through leverage decline in value. All this will make the shares’ total return performance more variable, over time.

In addition, common share income in levered funds will typically decrease in comparison to unlevered funds when short-term interest rates increase and increase when short-term interest rates decrease. In recent quarters, fund leverage expenses have generally tracked the overall movement of short-term tax-exempt interest rates. While fund leverage expenses are somewhat higher than their recent lows, leverage nevertheless continues to provide the opportunity for incremental common share income, particularly over longer-term periods.

Leverage from issuance of preferred shares and the use of leverage through inverse floating rate securities had a negative impact on the performance of NAC and NKX over the reporting period. NCA and NXC did not utilize leverage over the reporting period.

As of February 28, 2022, the Funds’ percentages of leverage are as shown in the accompanying table.

  NAC NKX NCA NXC
Effective Leverage* 37.41% 38.48% 0.00% 0.00%
Regulatory Leverage* 36.94% 36.80% 0.00% 0.00%

 

*Effective Leverage is a Fund’s effective economic leverage, and includes both regulatory leverage and the leverage effects of certain derivative and other investments in a Fund’s portfolio that increase the Fund’s investment exposure. Currently, the leverage effects of Tender Option Bond (TOB) inverse floater holdings are included in effective leverage values, in addition to any regulatory leverage. Regulatory leverage consists of preferred shares issued or borrowings of a Fund. Both of these are part of a Fund’s capital structure. A Fund, however, may from time to time borrow on a typically transient basis in connection with its day-to-day operations, primarily in connection with the need to settle portfolio trades. Such incidental borrowings are excluded from the calculation of a Fund’s effective leverage ratio. Regulatory leverage is subject to asset coverage limits set forth in the Investment Company Act of 1940.

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Fund Leverage (continued)

THE FUNDS’ REGULATORY LEVERAGE

As of February 28, 2022, the following Funds have issued and outstanding preferred shares as shown in the accompanying table. As mentioned previously, NCA and NXC do not use regulatory leverage.

       
  Variable Rate Variable Rate  
  Preferred* Remarketed Preferred**  
  Shares Shares  
  Issued at Issued at  
  Liquidation Liquidation  
  Preference Preference Total
NAC $729,900,000 $547,700,000 $1,277,600,000
NKX $ — $432,600,000 $ 432,600,000

 

*Preferred shares of the Fund featuring a floating rate dividend based on a predetermined formula or spread to an index rate. Includes the following preferred shares AMTP, iMTP, MFP-VRM and VRDP in Special Rate Mode, where applicable. See Notes to Financial Statements, Note 5 – Fund Shares, for further details.
**Preferred shares of the Fund featuring floating rate dividends set by a remarketing agent via a regular remarketing. Includes the following preferred shares VRDP not in Special Rate Mode, MFP-VRRM and MFP-VRDM, where applicable. See Notes to Financial Statements, Note 5 – Fund Shares, for further details.

Refer to Notes to Financial Statements, Note 5 — Fund Shares, for further details on preferred shares and each Fund’s respective transactions.

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Common Share Information

COMMON SHARE DISTRIBUTION INFORMATION

The following information regarding the Funds’ distributions is current as of February 28, 2022. Each Fund’s distribution levels may vary over time based on each Fund’s investment activity and portfolio investments value changes.

During the current reporting period, each Fund’s distributions to common shareholders were as shown in the accompanying table.

         
  Per Common Share Amounts
Monthly Distributions (Ex-Dividend Date) NAC NKX NCA NXC
March 2021 $0.0545 $0.0545 $0.0266 N/A(1)
April 0.0545 0.0545 0.0265 $0.0400
May 0.0545 0.0545 0.0265 0.0400
June 0.0545 0.0545 0.0265 0.0400
July 0.0545 0.0565 0.0245 0.0400
August 0.0545 0.0565 0.0245 0.0400
September 0.0545 0.0565 0.0245 0.0400
October 0.0545 0.0565 0.0245 0.0400
November 0.0545 0.0565 0.0245 0.0400
December 0.0545 0.0565 0.0245 0.0400
January 0.0545 0.0565 0.0245 0.0400
February 2022 0.0545 0.0565 0.0245 0.0400
Distributions from Net Investment Income $0.6540 $0.6700 $0.3021 $0.4400
Distributions from Long Term Capital Gains* $ — $ — $ — $0.0395
Total Distributions $0.6540 $0.6700 $0.3021 $0.4795

 

*Distributions paid in December 2021.
(1)Effective February 24, 2022, the fiscal year end for NXC changed from March 31 to February 28/29 and therefore the current reporting period for the Fund is April 1, 2021 through February 28, 2022. The March 2021 distribution for the Fund was $0.0437 as disclosed in the Fund's March 31, 2021 annual report.
Yields        
Market Yield* 4.77% 4.79% 3.08% 3.24%
Taxable-Equivalent Yield* 10.36% 10.39% 6.70% 7.03%

 

*Market Yield is based on the Fund’s current annualized monthly distribution divided by the Fund’s current market price as of the end of the reporting period. Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 54.1%. Your actual combined federal and state income tax rate may differ from the assumed rate. The Taxable-Equivalent Yield also takes into account the percentage of the Fund’s income generated and paid by the Fund (based on payments made during the previous calendar year) that was either exempt from federal income tax but not from state income tax (e.g., income from an out-of-state municipal bond), or was exempt from neither federal nor state income tax. Separately, if the comparison were instead to investments that generate qualified dividend income, which is taxable at a rate lower than an individual’s ordinary graduated tax rate, the fund’s Taxable-Equivalent Yield would be lower.

Each Fund seeks to pay regular monthly dividends out of its net investment income at a rate that reflects its past and projected net income performance. To permit each Fund to maintain a more stable monthly dividend, the Fund may pay dividends at a rate that may be more or less than the amount of net income actually earned by the Fund during the period. Distributions to common shareholders are determined on a tax basis, which may differ from amounts recorded in the accounting records. In instances where the monthly dividend exceeds the earned net investment income, the Fund would report a negative undistributed net ordinary income. Refer to Note 6 – Income Tax Information for additional information regarding the amounts of undistributed net ordinary income and undistributed net long-term capital gains and the character of the actual distributions paid by the Fund during the period.

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Common Share Information (continued)

All monthly dividends paid by each Fund during the current reporting period were paid from net investment income. If a portion of the Fund’s monthly distributions is sourced or comprised of elements other than net investment income, including capital gains and/or a return of capital, shareholders will be notified of those sources. For financial reporting purposes, the per share amounts of each Fund’s distributions for the reporting period are presented in this report’s Financial Highlights. For income tax purposes, distribution information for each Fund as of its most recent tax year end is presented in Note 6 – Income Tax Information within the Notes to Financial Statements of this report.

NUVEEN CLOSED-END FUND DISTRIBUTION AMOUNTS

The Nuveen Closed-End Funds’ monthly and quarterly periodic distributions to shareholders are posted on www.nuveen.com and can be found on Nuveen’s enhanced closed-end fund resource page, which is at https://www.nuveen.com/resource-center-closed-end-funds, along with other Nuveen closed-end fund product updates. To ensure timely access to the latest information, shareholders may use a subscribe function, which can be activated at this web page (https://www.nuveen.com/subscriptions).

COMMON SHARE EQUITY SHELF PROGRAM

During the current reporting period, NKX was authorized by the Securities and Exchange Commission to issue additional common shares through an equity shelf program (“Shelf Offering”). Under this program NKX, subject to market conditions, may raise additional capital from time to time in varying amounts and offering methods at a net price at or above the Fund’s NAV per common share. Under the Shelf Offering, NKX was authorized to issue additional shares as shown in the accompanying table.

  NKX
Additional authorized common shares 4,100,000*

* Represents additional authorized common shares for the period March 1, 2021 through June 30, 2021.

During the current reporting period, NKX did not sell common shares through its shelf program.

Refer to the Notes to Financial Statements, Note 5 – Fund Shares for further details of Shelf Offering and the Fund’s transactions.

COMMON SHARE REPURCHASES

During August 2021, the Funds’ Board of Trustees reauthorized an open–market share repurchase program, allowing each Fund to repurchase an aggregate of up to approximately 10% of its outstanding common shares.

During the current reporting period, the Funds did not repurchase any of their outstanding common shares. As of February 28, 2022, (and since the inception of the Funds’ repurchase programs), each Fund has cumulatively repurchased and retired its outstanding common shares as shown in the accompanying table.

         
  NAC NKX NCA NXC
Common shares cumulatively repurchased and retired 370,000 230,000
Common shares authorized for repurchase 14,470,000 4,750,000 3,310,000 635,000

 

OTHER COMMON SHARE INFORMATION

As of February 28, 2022, the Funds’ common share prices were trading at a premium/(discount) to their common share NAV, and trading at an average premium/(discount) to NAV during the current reporting period, as follows:

  NAC NKX NCA NXC
Common share NAV 15.07 15.64 10.32 15.15
Common share price 13.71 14.15 9.53 14.81
Premium/(Discount ) to NAV (9.02)% (9.53)% (7.66)% (2.24)%
Average premium/(discount) to NAV (4.57)% (4.80)% (4.21)% 1.76%(1)
(1) 11 months average premium/(discount) to NAV.        

 

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NAC Nuveen California Quality Municipal
  Income Fund
  Performance Overview and Holding Summaries as of February 28, 2022

 

Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this section.

Average Annual Total Returns as of February 28, 2022*

       
    Average Annual  
  1-Year 5-Year 10-Year
NAC at Common Share NAV (1.33)% 4.08% 5.36%
NAC at Common Share Price (1.81)% 3.56% 4.51%
S&P Municipal Bond Index (0.37)% 3.18% 3.22%
S&P Municipal Bond California Index (0.73)% 3.13% 3.51%

 

Past performance is not predictive of future results. Current performance may be higher or lower than the data shown. Returns do not reflect the deduction of taxes that shareholders may have to pay on Fund distributions or upon the sale of Fund shares. Returns at NAV are net of Fund expenses, and assume reinvestment of distributions. Comparative index return information is provided for the Fund’s shares at NAV only. Indexes are not available for direct investment.

Daily Common Share NAV and Share Price

 

 

Growth of an Assumed $10,000 Investment as of February 28, 2022 – Common Share Price

 

 

* For purposes of Fund performance, relative results are measured against the S&P Municipal Bond California Index.

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NAC Performance Overview and Holding Summaries as of
  February 28, 2022 (continued)

 

This data relates to the securities held in the Fund’s portfolio of investments as of the end of the reporting period. It should not be construed as a measure of performance for the Fund itself. Holdings are subject to change.

For financial reporting purposes, the ratings disclosed are the highest rating given by one of the following national rating agencies: Standard & Poor’s Group, Moody’s Investors Service, Inc. or Fitch, Inc. This treatment of split-rated securities may differ from that used for other purposes, such as for Fund investment policies. 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. Holdings designated N/R are not rated by these national rating agencies.

Fund Allocation  
(% of net assets)  
Municipal Bonds 156.9%
Other Assets Less Liabilities 1.6%
Net Assets Plus MFP shares, net of  
deferred offering costs and VRDP  
Shares, net of deferred offering costs 158.5%
MFP Shares, net of deferred offering costs (14.7)%
VRDP Shares, net of deferred offering costs (43.8)%
Net Assets 100%

 

States and Territories  
(% of total municipal bonds)2  
California 97.1%
Puerto Rico 2.2%
Guam 0.6%
Virgin Islands 0.1%
New York 0.0%
Total 100%

 

Portfolio Composition1  
(% of total investments)  
Tax Obligation/General 18.3%
U.S. Guaranteed 16.8%
Utilities 16.5%
Transportation 12.5%
Tax Obligation/Limited 12.3%
Housing/Multifamily 10.1%
Health Care 8.7%
Other 4.8%
Total 100%

 

Portfolio Credit Quality  
(% of total investment exposure)  
U.S. Guaranteed 15.1%
AAA 6.2%
AA 44.2%
A 10.4%
BBB 7.0%
BB or Lower 3.3%
N/R (not rated) 13.8%
Total 100%

 

(1)See the Portfolio of Investments for the remaining industries/sectors comprising "Other" and not listed in the Portfolio Composition above.
(2)The Fund may invest up to 20% of its net assets in municipal bonds that are exempt from regular federal income tax, but not from California personal income tax if, in the judgment of the Fund’s sub-adviser, such purchases are expected to enhance the Fund's after-tax total return potential.

14

 

 

 

NKX Nuveen California AMT-Free Quality
  Municipal Income Fund
  Performance Overview and Holding Summaries as of February 28, 2022

 

Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this section.

Average Annual Total Returns as of February 28, 2022*

       
    Average Annual  
  1-Year 5-Year 10-Year
NKX at Common Share NAV (1.19)% 4.66% 5.67%
NKX at Common Share Price (2.44)% 3.93% 4.73%
S&P Municipal Bond Index (0.37)% 3.18% 3.22%
S&P Municipal Bond California Index (0.73)% 3.13% 3.51%

 

Past performance is not predictive of future results. Current performance may be higher or lower than the data shown. Returns do not reflect the deduction of taxes that shareholders may have to pay on Fund distributions or upon the sale of Fund shares. Returns at NAV are net of Fund expenses, and assume reinvestment of distributions. Comparative index return information is provided for the Fund’s shares at NAV only. Indexes are not available for direct investment.

Daily Common Share NAV and Share Price

 

 

Growth of an Assumed $10,000 Investment as of February 28, 2022 – Common Share Price

 

 

* For purposes of Fund performance, relative results are measured against the S&P Municipal Bond California Index.

15

 

 

 

NKX Performance Overview and Holding Summaries as of
  February 28, 2022 (continued)

 

This data relates to the securities held in the Fund’s portfolio of investments as of the end of the reporting period. It should not be construed as a measure of performance for the Fund itself. Holdings are subject to change.

For financial reporting purposes, the ratings disclosed are the highest rating given by one of the following national rating agencies: Standard & Poor’s Group, Moody’s Investors Service, Inc. or Fitch, Inc. This treatment of split-rated securities may differ from that used for other purposes, such as for Fund investment policies. 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. Holdings designated N/R are not rated by these national rating agencies.

Fund Allocation  
(% of net assets)  
Municipal Bonds 159.7%
Other Assets Less Liabilities 1.0%
Net Assets Plus Floating Rate  
Obligations, MFP shares, net of  
deferred offering costs and VRDP  
Shares, net of deferred offering costs 160.7%
Floating Rate Obligations (2.8)%
MFP Shares, net of deferred offering costs (18.8)%
VRDP Shares, net of deferred offering costs (39.1)%
Net Assets 100%

 

States and Territories  
(% of total municipal bonds)2  
California 96.0%
Puerto Rico 2.4%
Guam 1.1%
Virgin Islands 0.4%
New York 0.1%
Total 100%

 

   
Portfolio Composition1  
(% of total investments)  
Tax Obligation/General 21.4%
U.S. Guaranteed 18.1%
Utilities 17.3%
Tax Obligation/Limited 16.9%
Housing/Multifamily 10.1%
Health Care 7.6%
Transportation 6.3%
Other 2.3%
Total 100%

 

   
Portfolio Credit Quality  
(% of total investment exposure)  
U.S. Guaranteed 16.7%
AAA 6.5%
AA 47.5%
A 8.1%
BBB 4.2%
BB or Lower 3.5%
N/R (not rated) 13.5%
Total 100%

 

(1)See the Portfolio of Investments for the remaining industries/sectors comprising "Other" and not listed in the Portfolio Composition above.
(2)The Fund may invest up to 20% of its net assets in municipal bonds that are exempt from regular federal income tax, but not from California personal income tax if, in the judgment of the Fund’s sub-adviser, such purchases are expected to enhance the Fund's after-tax total return potential.

16

 

 

 

   
NCA Nuveen California Municipal Value Fund
  Performance Overview and Holding Summaries as of February 28, 2022

 

Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this section.

Average Annual Total Returns as of February 28, 2022*

       
    Average Annual  
  1-Year 5-Year 10-Year
NCA at Common Share NAV (0.43)% 3.46% 4.19%
NCA at Common Share Price (3.89)% 2.01% 3.41%
S&P Municipal Bond Index (0.37)% 3.18% 3.22%
S&P Municipal Bond California Index (0.73)% 3.13% 3.51%

 

Past performance is not predictive of future results. Current performance may be higher or lower than the data shown. Returns do not reflect the deduction of taxes that shareholders may have to pay on Fund distributions or upon the sale of Fund shares. Returns at NAV are net of Fund expenses, and assume reinvestment of distributions. Comparative index return information is provided for the Fund’s shares at NAV only. Indexes are not available for direct investment.

Daily Common Share NAV and Share Price

 

Growth of an Assumed $10,000 Investment as of February 28, 2022 – Common Share Price

 

 

* For purposes of Fund performance, relative results are measured against the S&P Municipal Bond California Index.

17

 

 

 

NCA Performance Overview and Holding Summaries as of
  February 28, 2022 (continued)

 

This data relates to the securities held in the Fund’s portfolio of investments as of the end of the reporting period. It should not be construed as a measure of performance for the Fund itself. Holdings are subject to change.

For financial reporting purposes, the ratings disclosed are the highest rating given by one of the following national rating agencies: Standard & Poor’s Group, Moody’s Investors Service, Inc. or Fitch, Inc. This treatment of split-rated securities may differ from that used for other purposes, such as for Fund investment policies. 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. Holdings designated N/R are not rated by these national rating agencies.

Fund Allocation  
(% of net assets)  
Municipal Bonds 99.6%
Other Assets Less Liabilities 0.4%
Net Assets 100%

 

States and Territories  
(% of total municipal bonds)2  
California 97.7%
Puerto Rico 2.0%
Virgin Islands 0.3%
Total 100%

 

Portfolio Composition1  
(% of total investments)  
Tax Obligation/General 25.7%
Utilities 19.3%
Transportation 16.6%
Tax Obligation/Limited 11.8%
Housing/Multifamily 9.5%
Health Care 7.6%
U.S. Guaranteed 7.4%
Other 2.1%
Total 100%

 

Portfolio Credit Quality  
(% of total investment exposure)  
U.S. Guaranteed 7.1%
AAA 12.6%
AA 45.9%
A 13.3%
BBB 6.5%
BB or Lower 2.8%
N/R (not rated) 11.8%
Total 100%

 

1See the Portfolio of Investments for the remaining industries/sectors comprising "Other" and not listed in the Portfolio Composition above.
2The Fund may invest up to 20% of its net assets in municipal bonds that are exempt from regular federal income tax, but not from California personal income tax if, in the judgment of the Fund’s sub-adviser, such purchases are expected to enhance the Fund's after-tax total return potential.

18

 

 

 

NXC Nuveen California Select Tax-Free
  Income Portfolio
  Performance Overview and Holding Summaries as of
  February 28, 2022

 

Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this section.

Average Annual Total Returns as of February 28, 2022*

         
  Cumulative   Average Annual  
  11-Month 1-Year 5-Year 10-Year
NXC at Common Share NAV (1.34)% (0.44)% 3.76% 4.33%
NXC at Common Share Price (6.27)% (3.95)% 3.10% 4.42%
S&P Municipal Bond Index (0.91)% (0.37)% 3.18% 3.22%
S&P Municipal Bond California Index (1.31)% (0.73)% 3.13% 3.51%

 

Past performance is not predictive of future results. Current performance may be higher or lower than the data shown. Returns do not reflect the deduction of taxes that shareholders may have to pay on Fund distributions or upon the sale of Fund shares. Returns at NAV are net of Fund expenses, and assume reinvestment of distributions. Comparative index return information is provided for the Fund’s shares at NAV only. Indexes are not available for direct investment.

Daily Common Share NAV and Share Price

 

 

Growth of an Assumed $10,000 Investment as of February 28, 2022 – Common Share Price

 

 

* For purposes of Fund performance, relative results are measured against the S&P Municipal Bond California Index.

19

 

  

NXC Performance Overview and Holding Summaries as of
  February 28, 2022 (continued)

 

This data relates to the securities held in the Fund’s portfolio of investments as of the end of the reporting period. It should not be construed as a measure of performance for the Fund itself. Holdings are subject to change.

For financial reporting purposes, the ratings disclosed are the highest rating given by one of the following national rating agencies: Standard & Poor’s Group, Moody’s Investors Service, Inc. or Fitch, Inc. This treatment of split-rated securities may differ from that used for other purposes, such as for Fund investment policies. 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. Holdings designated N/R are not rated by these national rating agencies.

Fund Allocation  
(% of net assets)  
Municipal Bonds 98.1%
Other Assets Less Liabilities 1.9%
Net Assets 100%

 

States and Territories  
(% of total municipal bonds)2  
California 97.4%
Puerto Rico 1.5%
Virgin Islands 1.1%
Total 100%

 

Portfolio Composition1  
(% of total investments)  
Tax Obligation/General 21.7%
Utilities 19.7%
Tax Obligation/Limited 16.5%
U.S. Guaranteed 15.2%
Housing/Multifamily 9.5%
Transportation 9.0%
Health Care 7.1%
Other 1.3%
Total 100%

 

Portfolio Credit Quality  
(% of total investment exposure)  
U.S. Guaranteed 13.8%
AAA 15.2%
AA 37.9%
A 11.2%
BBB 5.9%
BB or Lower 3.1%
N/R (not rated) 12.9%
Total 100%

 

1See the Portfolio of Investments for the remaining industries/sectors comprising "Other" and not listed in the Portfolio Composition above.
2The Fund may invest up to 20% of its net assets in municipal bonds that are exempt from regular federal income tax, but not from California personal income tax if, in the judgment of the Fund's sub-adviser, such purchases are expected to enhance the Fund’s after-tax total return potential.

20

 

 

 

Shareholder Meeting Report

The annual meeting of shareholders was held on November 17, 2021 for NCA, NKX and NAC. The meeting was held virtually due to public health concerns regarding the ongoing COVID-19 pandemic; at this meeting the shareholders were asked to elect Board members.

                   
    NCA     NKX     NAC  
  Common and     Common and     Common and    
  Preferred shares     Preferred shares     Preferred shares    
  voting together   Preferred voting together   Preferred voting together   Preferred
  as a class   Shares as a class   Shares as a class   Shares
Approval of the Board Members was                  
reached as follows:                  
Jack B. Evans                  
For 18,641,358   35,146,108   102,966,240  
Withhold 8,903,695   1,162,658   3,009,464  
Total 27,545,053   36,308,766   105,975,704  
Joanne T. Medero                  
For 26,726,706   35,226,950   103,245,655  
Withhold 818,347   1,081,816   2,730,049  
Total 27,545,053   36,308,766   105,975,704  
Matthew Thornton III                  
For 26,695,626   35,226,359   102,966,609  
Withhold 849,427   1,082,407   3,009,095  
Total 27,545,053   36,308,766   105,975,704  
William C. Hunter                  
For     4,276   10,273
Withhold     40  
Total     4,316   10,273
Albin F. Moschner                  
For 18,696,982     4,316   10,273
Withhold 8,848,071      
Total 27,545,053     4,316   10,273

 

21

 

  

Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Trustees
Nuveen California Quality Municipal Income Fund,
Nuveen California AMT-Free Quality Municipal Income Fund,
Nuveen California Municipal Value Fund, and
Nuveen California Select Tax-Free Income Portfolio:


Opinion on the Financial Statements

We have audited the accompanying statements of assets and liabilities of Nuveen California Quality Municipal Income Fund, Nuveen California AMT-Free Quality Municipal Income Fund, Nuveen California Municipal Value Fund, and Nuveen California Select Tax-Free Income Portfolio (the Funds), including the portfolios of investments, as of February 28, 2022, the related statements of operations for the year then ended (the eleven-month period from April 1, 2021 to February 28, 2022 and the year-ended March 31, 2021 for Nuveen California Select Tax-Free Income Portfolio), the statements of cash flows for the year then ended for Nuveen California Quality Municipal Income Fund and Nuveen California AMT-Free Quality Municipal Income Fund, the statements of changes in net assets for each of the years in the two year period then ended (the eleven-month period from April 1, 2021 to February 28, 2022 and each of the years in the two-year period ended March 31, 2021 for Nuveen California Select Tax-Free Income Portfolio), and the related notes (collectively, the financial statements) and the financial highlights for each of the years in the five year period then ended (the eleven-month period from April 1, 2021 to February 28, 2022 and each of the years in the five-year period ended March 31, 2021 for Nuveen California Select Tax-Free Income Portfolio).

In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Funds as of February 28, 2022, the results of their operations for the year then ended (the eleven-month period from April 1, 2021 to February 28, 2022 and the year-ended March 31, 2021 for Nuveen California Select Tax-Free Income Portfolio), their cash flows for the year then ended for Nuveen California Quality Municipal Income Fund and Nuveen California AMT-Free Quality Municipal Income Fund, the changes in their net assets for each of the years in the two year period then ended (the eleven-month period from April 1, 2021 to February 28, 2022 and each of the years in the two-year period ended March 31, 2021 for Nuveen California Select Tax-Free Income Portfolio), and the financial highlights for each of the years in the five year period then ended (the eleven-month period from April 1, 2021 to February 28, 2022 and each of the years in the five-year period ended March 31, 2021 for Nuveen California Select Tax-Free Income Portfolio), in conformity with U.S. generally accepted accounting principles.

Basis for Opinion

These financial statements and financial highlights are the responsibility of the Funds' management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial

22

 

 

 

statements and financial highlights. Such procedures also included confirmation of securities owned as of February 28, 2022, by correspondence with custodians and brokers; when replies were not received from brokers, we performed other auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. We believe that our audits provide a reasonable basis for our opinion.

/s/ KPMG LLP

We have served as the auditor of one or more Nuveen investment companies since 2014.

Chicago, Illinois

April 27, 2022

23

 

  

NAC Nuveen California Quality Municipal
  Income Fund
  Portfolio of Investments
  February 28, 2022

 

Principal   Optional Call    
Amount (000) Description (1) Provisions (2) Ratings (3) Value
  LONG-TERM INVESTMENTS – 156.9% (100.0% of Total Investments)      
  MUNICIPAL BONDS – 156.9% (100.0% of Total Investments)      
  Consumer Staples – 0.6% (0.3% of Total Investments)      
$ 1,000 California County Tobacco Securitization Agency, Tobacco Settlement Asset-Backed Bonds, 3/22 at 100.00 N/R $ 1,000,310
  Golden Gate Tobacco Funding Corporation, Turbo, Series 2007A, 5.000%, 6/01/47      
680 California County Tobacco Securitization Agency, Tobacco Settlement Asset-Backed Bonds, 6/30 at 100.00 BBB+ 737,086
  Los Angeles County Securitization Corporation, Series 2020A, 4.000%, 6/01/49      
25,000 California Statewide Financing Authority, Tobacco Settlement Asset-Backed Bonds, Pooled 3/22 at 22.54 N/R 5,623,750
  Tobacco Securitization Program, Series 2006A, 0.000%, 6/01/46      
19,000 Silicon Valley Tobacco Securitization Authority, California, Tobacco Settlement 3/22 at 23.43 N/R 4,432,890
  Asset-Backed Bonds, Santa Clara County Tobacco Securitization Corporation, Series 2007B,      
  0.000%, 6/01/47      
45,680 Total Consumer Staples     11,794,036
  Education and Civic Organizations – 6.0% (3.8% of Total Investments)      
7,000 California Educational Facilities Authority, Revenue Bonds,Stanford University, No Opt. Call AAA 9,918,930
  Refunding Series 2014U-6, 5.000%, 5/01/45      
  California Municipal Finance Authority, Revenue Bonds, Creative Center of Los Altos      
  Project Pinewood & Oakwood Schools, Series 2016B:      
800 4.000%, 11/01/36, 144A 11/26 at 100.00 N/R 801,992
1,000 4.500%, 11/01/46, 144A 11/26 at 100.00 N/R 1,008,730
5,385 California Municipal Finance Authority, Charter School Revenue Bonds, Rocketship 6/22 at 102.00 N/R 5,555,112
  Education Multiple Projects, Series 2014A, 7.250%, 6/01/43      
1,000 California Municipal Finance Authority, Revenue Bonds, Biola University, Series 2013, 10/23 at 100.00 Baa1 1,047,010
  5.000%, 10/01/38      
365 California School Finance Authority, Charter School Revenue Bonds, Kepler Neighborhood No Opt. Call N/R 381,498
  School, Series 2017A, 5.000%, 5/01/27, 144A      
1,615 California School Finance Authority, School Facility Revenue Bonds, Alliance for 7/25 at 100.00 BBB 1,752,162
  College-Ready Public Schools Project, Series 2015A, 5.000%, 7/01/45, 144A      
2,150 California School Finance Authority, School Facility Revenue Bonds, Alliance for 7/25 at 100.00 BBB 2,329,912
  College-Ready Public Schools Project, Series 2016A, 5.000%, 7/01/46, 144A      
  California School Finance Authority, School Facility Revenue Bonds, Alliance for      
  College-Ready Public Schools Project, Series 2016C:      
5,995 5.000%, 7/01/46 7/25 at 101.00 BBB 6,552,056
8,340 5.250%, 7/01/52 7/25 at 101.00 BBB 9,161,407
800 California School Finance Authority, School Facility Revenue Bonds, Value Schools, 7/26 at 100.00 BB+ 908,576
  Series 2016A, 6.000%, 7/01/51, 144A      
4,140 California State University, Systemwide Revenue Bonds, Series 2016A, 4.000%, 11/01/38 5/26 at 100.00 Aa2 4,505,603
10,440 California State University, Systemwide Revenue Bonds, Series 2019A, 5.000%, 11/01/44 11/29 at 100.00 Aa2 12,724,794
7,100 California State University, Systemwide Revenue Bonds, Series 2020C, 3.000%, 11/01/39 11/30 at 100.00 Aa2 7,364,049
1,000 Dutchess County Local Development Corporation, New York, Revenue Bonds, Marist College 7/25 at 100.00 A+ 1,105,920
  Project, Series 2015A, 5.000%, 7/01/45      
17,750 University of California, General Revenue Bonds, Limited Project Series 2017M, 5/27 at 100.00 AA– 20,498,055
  5.000%, 5/15/47      
6,775 University of California, General Revenue Bonds, Series 2017AV, 5.250%, 5/15/47 5/27 at 100.00 AA 7,947,888
8,500 University of California, General Revenue Bonds, Series 2018AZ, 5.000%, 5/15/48 5/28 at 100.00 AA 10,088,310
  University of California, General Revenue Bonds, Series 2020BE:      
11,040 5.000%, 5/15/43 5/30 at 100.00 AA 13,466,923
12,000 4.000%, 5/15/50 5/30 at 100.00 AA 13,419,840
113,195 Total Education and Civic Organizations     130,538,767

 

24

 

 

 

Principal   Optional Call    
Amount (000) Description (1) Provisions (2) Ratings (3) Value
  Financials – 0.0% (0.0% of Total Investments)      
$ 1,305 Puerto Rico Urgent Interest Fund Corp (COFINA), National Taxable Trust Unit, No Opt. Call N/R $ 314,976
  Series 2007A Sr. Bond, 0.000%, 8/01/54 (4)      
  Health Care – 13.7% (8.7% of Total Investments)      
9,345 ABAG Finance Authority for Nonprofit Corporations, California, Revenue Bonds, Sharp 8/23 at 100.00 AA 9,822,903
  HealthCare, Series 2014A, 5.000%, 8/01/43      
22,545 California Health Facilities Financing Authority, California, Revenue Bonds, Sutter 11/26 at 100.00 A1 25,707,162
  Health, Refunding Series 2016B, 5.000%, 11/15/46      
  California Health Facilities Financing Authority, California, Revenue Bonds, Sutter      
  Health, Series 2018A:      
6,135 5.000%, 11/15/36 11/27 at 100.00 A1 7,196,539
7,250 5.000%, 11/15/48 11/27 at 100.00 A1 8,440,305
15,000 California Health Facilities Financing Authority, Revenue Bonds, Cedars-Sinai Health 8/31 at 100.00 N/R 14,821,200
  System, Series 2021A, 3.000%, 8/15/51      
15,000 California Health Facilities Financing Authority, Revenue Bonds, Cedars-Sinai Medical 8/26 at 100.00 Aa3 16,288,200
  Center, Refunding Series 2016B, 4.000%, 8/15/39      
  California Health Facilities Financing Authority, Revenue Bonds, Children’s Hospital Los      
  Angeles, Series 2017A:      
3,900 5.000%, 8/15/42 8/27 at 100.00 BBB+ 4,497,207
2,400 5.000%, 8/15/47 8/27 at 100.00 BBB+ 2,750,376
  California Health Facilities Financing Authority, Revenue Bonds, CommonSpirit Health,      
  Series 2020A:      
9,975 4.000%, 4/01/44 4/30 at 100.00 BBB+ 10,913,847
6,530 4.000%, 4/01/45 4/30 at 100.00 BBB+ 7,130,695
6,105 California Health Facilities Financing Authority, Revenue Bonds, Lucile Salter Packard 8/24 at 100.00 AA– 6,610,250
  Children’s Hospital, Series 2014A, 5.000%, 8/15/43      
1,250 California Health Facilities Financing Authority, Revenue Bonds, Memorial Health 10/22 at 100.00 AA– 1,279,875
  Services, Series 2012A, 5.000%, 10/01/33      
2,230 California Health Facilities Financing Authority, Revenue Bonds, Providence Health & 10/24 at 100.00 AA– 2,420,286
  Services, Refunding Series 2014A, 5.000%, 10/01/38      
8,375 California Health Facilities Financing Authority, Revenue Bonds, Providence Health & 10/24 at 100.00 AA– 9,078,500
  Services, Series 2014B, 5.000%, 10/01/44      
11,250 California Health Facilities Financing Authority, Revenue Bonds, Providence Saint Joseph 10/26 at 100.00 AA– 12,197,812
  Health, Refunding Series 2016A, 4.000%, 10/01/47      
685 California Municipal Finance Authority, Revenue Bonds, Eisenhower Medical Center, 7/27 at 100.00 Baa2 783,928
  Refunding Series 2017A, 5.000%, 7/01/42      
11,520 California Municipal Finance Authority, Revenue Bonds, NorthBay Healthcare Group, Series 11/26 at 100.00 BBB– 13,073,242
  2017A, 5.250%, 11/01/41      
1,455 California Public Finance Authority, Revenue Bonds, Henry Mayo Newhall Hospital, Series 10/26 at 100.00 BBB– 1,633,790
  2017, 5.000%, 10/15/47      
5,760 California Public Finance Authority, Revenue Bonds, Sharp HealthCare, Series 2017A, 2/28 at 100.00 AA 6,740,870
  5.000%, 8/01/47      
2,000 California Statewide Communities Development Authority, California, Redlands Community 10/26 at 100.00 A– 2,244,300
  Hospital, Revenue Bonds, Series 2016, 5.000%, 10/01/46      
  California Statewide Communities Development Authority, California, Revenue Bonds, Loma      
  Linda University Medical Center, Series 2014A:      
1,000 5.250%, 12/01/34 12/24 at 100.00 BB 1,098,120
1,200 5.250%, 12/01/44 12/24 at 100.00 BB 1,308,900
2,375 5.500%, 12/01/54 12/24 at 100.00 BB 2,599,936
  California Statewide Communities Development Authority, California, Revenue Bonds, Loma      
  Linda University Medical Center, Series 2016A:      
9,385 5.000%, 12/01/46, 144A 6/26 at 100.00 BB 10,492,712
33,895 5.250%, 12/01/56, 144A 6/26 at 100.00 BB 38,105,098

 

25

 

 

 

   
NAC Nuveen California Quality Municipal Income Fund
  Portfolio of Investments (continued)
  February 28, 2022

 

         
Principal   Optional Call    
Amount (000) Description (1) Provisions (2) Ratings (3) Value
  Health Care (continued)      
$ 16,445 California Statewide Communities Development Authority, California, Revenue Bonds, Loma 6/28 at 100.00 BB $ 19,258,904
  Linda University Medical Center, Series 2018A, 5.500%, 12/01/58, 144A      
  California Statewide Communities Development Authority, Revenue Bonds, Adventist Health      
  System/West, Series 2015A:      
2,345 5.000%, 3/01/35 3/26 at 100.00 A+ 2,633,200
3,000 5.000%, 3/01/45 3/26 at 100.00 A+ 3,356,370
5,000 California Statewide Communities Development Authority, Revenue Bonds, Adventist Health 3/28 at 100.00 A+ 5,849,300
  System/West, Series 2018A, 5.000%, 3/01/48      
25,290 California Statewide Communities Development Authority, Revenue Bonds, Kaiser 4/22 at 100.00 AA– 25,375,986
  Permanente, Series 2012A, 5.000%, 4/01/42      
  California Statewide Community Development Authority, Revenue Bonds, Daughters of      
  Charity Health System, Series 2005A:      
890 5.750%, 7/01/24 (5),(6) 1/22 at 100.00 N/R 783,330
970 5.750%, 7/01/30 (5),(6) 1/22 at 100.00 N/R 854,577
679 5.750%, 7/01/35 (5),(6) 1/22 at 100.00 N/R 598,243
916 5.500%, 7/01/39 (5),(6) 1/22 at 100.00 N/R 806,563
6,200 Madera County, California, Certificates of Participation, Valley Children’s Hospital 3/22 at 100.00 A1 6,678,826
  Project, Series 1995, 5.750%, 3/15/28 – NPFG Insured      
12,910 Palomar Pomerado Health System, California, Revenue Bonds, Refunding Series 2016, 11/26 at 100.00 BBB 14,620,446
  5.000%, 11/01/39      
271,210 Total Health Care     298,051,798
  Housing/Multifamily – 15.9% (10.1% of Total Investments)      
22,285 California Community Housing Agency, California, Essential Housing Revenue Bonds, 8/31 at 100.00 N/R 21,505,694
  Creekwood, Series 2021A, 4.000%, 2/01/56, 144A      
16,705 California Community Housing Agency, California, Essential Housing Revenue Bonds, 8/31 at 100.00 N/R 15,567,055
  Glendale Properties, Junior Series 2021A-2, 4.000%, 8/01/47, 144A      
13,375 California Community Housing Agency, California, Essential Housing Revenue Bonds, 2/30 at 100.00 N/R 13,690,249
  Serenity at Larkspur Apartments, Series 2020A, 5.000%, 2/01/50, 144A      
2,860 California Community Housing Agency, California, Essential Housing Revenue Bonds, 2/31 at 100.00 N/R 2,732,072
  Stoneridge Apartments, Series 2021A, 4.000%, 2/01/56, 144A      
7,380 California Community Housing Agency, California, Essential Housing Revenue Bonds, Summit 8/32 at 100.00 N/R 6,118,906
  at Sausalito Apartments, Series 2021A-1, 3.000%, 2/01/57, 144A      
660 California Community Housing Agency, California, Essential Housing Revenue Bonds, Summit 8/32 at 100.00 N/R 583,869
  at Sausalito Apartments, Series 2021A-2, 4.000%, 2/01/50, 144A      
1,385 California Community Housing Agency, California, Essential Housing Revenue Bonds, 8/29 at 100.00 N/R 1,439,694
  Verdant at Green Valley Apartments, Series 2019A, 5.000%, 8/01/49, 144A      
7,575 California Community Housing Agency, Workforce Housing Revenue Bonds, Annadel 4/29 at 100.00 N/R 7,816,036
  Apartments, Series 2019A, 5.000%, 4/01/49, 144A      
23,109 California Housing Finance Agency, Municipal Certificate Revenue Bonds, Class A Series No Opt. Call BBB+ 25,480,037
  2019-2, 4.000%, 3/20/33      
19,105 California Housing Finance Agency, Municipal Certificate Revenue Bonds, Class A Series No Opt. Call BBB+ 20,425,099
  2021-1, 3.500%, 11/20/35      
3,429 California Housing Finance Agency, Municipal Certificate Revenue Bonds, Class A No Opt. Call BBB+ 3,876,204
  Series2019-1, 4.250%, 1/15/35      
  California Municipal Finance Authority, Mobile Home Park Revenue Bonds, Caritas      
  Affordable Housing Inc Projects, Senior Series 2014A:      
1,680 5.250%, 8/15/39 8/24 at 100.00 A– 1,782,245
2,150 5.250%, 8/15/49 8/24 at 100.00 A– 2,271,776
  California Public Finance Authority, University Housing Revenue Bonds, National Campus      
  Community Development – Claremont Properties LLC Claremont Colleges Project, Series 2017A:      
1,325 5.000%, 7/01/37, 144A 7/27 at 100.00 Caa2 1,135,167
1,000 5.000%, 7/01/47, 144A 7/27 at 100.00 Caa2 842,200

 

26

 

 

 

Principal   Optional Call    
Amount (000) Description (1) Provisions (2) Ratings (3) Value
  Housing/Multifamily (continued)      
$ 23,750 CMFA Special Finance Agency I, California, Essential Housing Revenue Bonds, The Mix at 4/31 at 100.00 N/R $ 23,704,875
  Center City, Series 2021A-2, 4.000%, 4/01/56, 144A      
8,060 CMFA Special Finance Agency, California, Essential Housing Revenue Bonds, Enclave 2/32 at 100.00 N/R 7,616,861
  Apartments, Senior Series 2022A-1, 4.000%, 8/01/58, 144A      
4,145 CMFA Special Finance Agency, California, Essential Housing Revenue Bonds, Latitude 33, 12/31 at 100.00 N/R 3,370,258
  Senior Series 2021A-1, 3.000%, 12/01/56, 144A      
1,265 CSCDA Community Improvement Authority, California, Essential Housing Revenue Bonds, 777 5/32 at 100.00 N/R 1,212,300
  Place-Pomona, Senior Lien Series 2021A-1, 3.600%, 5/01/47, 144A      
11,510 CSCDA Community Improvement Authority, California, Essential Housing Revenue Bonds, 777 5/32 at 100.00 N/R 9,926,454
  Place-Pomona, Senior Lien Series 2021A-2, 3.250%, 5/01/57, 144A      
1,720 CSCDA Community Improvement Authority, California, Essential Housing Revenue Bonds, 10/31 at 100.00 N/R 1,571,306
  Acacia on Santa Rosa Creek, Mezzanine Lien Series 2021B, 4.000%, 10/01/46, 144A      
3,310 CSCDA Community Improvement Authority, California, Essential Housing Revenue Bonds, 10/31 at 100.00 N/R 3,344,060
  Acacia on Santa Rosa Creek, Senior Lien Series 2021A, 4.000%, 10/01/56, 144A      
20,500 CSCDA Community Improvement Authority, California, Essential Housing Revenue Bonds, 10/31 at 100.00 N/R 19,900,785
  Altana Glendale, Series 2021A-2, 4.000%, 10/01/56, 144A      
23,610 CSCDA Community Improvement Authority, California, Essential Housing Revenue Bonds, 1/31 at 100.00 N/R 24,900,995
  Center City Anaheim, Series 2020A, 5.000%, 1/01/54, 144A      
4,830 CSCDA Community Improvement Authority, California, Essential Housing Revenue Bonds, 8/31 at 100.00 N/R 4,043,676
  Jefferson-Anaheim Series 2021A-2, 3.125%, 8/01/56, 144A      
  CSCDA Community Improvement Authority, California, Essential Housing Revenue Bonds,      
  Millennium South Bay-Hawthorne, Series 2021A-1 and A-2:      
6,210 3.375%, 7/01/43, 144A 7/32 at 100.00 N/R 5,976,007
8,060 3.250%, 7/01/56, 144A 7/32 at 100.00 N/R 7,053,306
21,695 CSCDA Community Improvement Authority, California, Essential Housing Revenue Bonds, 10/31 at 100.00 N/R 21,797,400
  Moda at Monrovia Station, Social Series 2021A-2, 4.000%, 10/01/56, 144A      
  CSCDA Community Improvement Authority, California, Essential Housing Revenue Bonds,      
  Monterrey Station Apartments, Senior Lien Series 2021A-1:      
2,215 3.000%, 7/01/43, 144A 7/32 at 100.00 N/R 1,975,492
9,645 3.125%, 7/01/56, 144A 7/32 at 100.00 N/R 8,172,208
3,220 CSCDA Community Improvement Authority, California, Essential Housing Revenue Bonds, 9/31 at 100.00 N/R 3,235,166
  Oceanaire-Long Beach, Social Series 2021A-2, 4.000%, 9/01/56, 144A      
450 CSCDA Community Improvement Authority, California, Essential Housing Revenue Bonds, 3/32 at 100.00 N/R 385,430
  Orange City Portfolio, Mezzanine Lien Series 2021B, 4.000%, 3/01/57, 144A      
13,700 CSCDA Community Improvement Authority, California, Essential Housing Revenue Bonds, 3/32 at 100.00 N/R 11,333,736
  Orange City Portfolio, Senior Lien Series 2021A-2, 3.000%, 3/01/57, 144A      
8,895 CSCDA Community Improvement Authority, California, Essential Housing Revenue Bonds, 8/31 at 100.00 N/R 8,511,537
  Parallel-Anaheim Series 2021A, 4.000%, 8/01/56, 144A      
5,720 CSCDA Community Improvement Authority, California, Essential Housing Revenue Bonds, 12/31 at 100.00 N/R 5,061,857
  Pasadena Portfolio Social Bond, Mezzanine Senior Series 2021B, 4.000%, 12/01/56, 144A      
590 CSCDA Community Improvement Authority, California, Essential Housing Revenue Bonds, 7/31 at 100.00 N/R 623,748
  Renaissance at City Center, Series 2020A, 5.000%, 7/01/51, 144A      
8,025 CSCDA Community Improvement Authority, California, Essential Housing Revenue Bonds, 7/31 at 100.00 N/R 8,061,915
  Union South Bay, Series 2021A-2, 4.000%, 7/01/56, 144A      
2,010 CSCDA Community Improvement Authority, California, Essential Housing Revenue Bonds, 9/31 at 100.00 N/R 1,817,402
  Waterscape Apartments, Mezzanine Lien Series 2021B, 4.000%, 9/01/46, 144A      
2,260 CSCDA Community Improvement Authority, California, Essential Housing Revenue Bonds, 9/31 at 100.00 N/R 1,887,303
  Waterscape Apartments, Senior Lien Series 2021A, 3.000%, 9/01/56, 144A      
5,700 CSCDA Community Improvement Authority, California, Essential Housing Revenue Bonds, 6/31 at 100.00 N/R 5,109,423
  Westgate Phase 1-Pasadena Apartments, Senior Lien Series 2021A-1, 3.000%, 6/01/47, 144A      
20,760 CSCDA Community Improvement Authority, California, Essential Housing Revenue Bonds, 6/31 at 100.00 N/R 17,411,204
  Westgate Phase 1-Pasadena Apartments, Senior Lien Series 2021A-2, 3.125%, 6/01/57, 144A      

 

27

 

 

 

   
NAC Nuveen California Quality Municipal Income Fund
  Portfolio of Investments (continued)
  February 28, 2022

 

Principal   Optional Call    
Amount (000) Description (1) Provisions (2) Ratings (3) Value
  Housing/Multifamily (continued)      
$ 14,365 CSCDA Community Improvement Authority, California, Essential Housing Revenue Bonds, Wood 6/32 at 100.00 N/R $ 11,636,656
  Creek Apartments, Senior Lien Series 2021A-1, 3.000%, 12/01/49      
1,230 Independent Cities Finance Authority, California, Mobile Home Park Revenue Bonds, 5/22 at 100.00 A+ 1,235,351
  Augusta Communities Mobile Home Park, Series 2012A, 5.000%, 5/15/39      
361,473 Total Housing/Multifamily     346,143,014
  Industrials – 0.9% (0.6% of Total Investments)      
18,630 California Community Choice Financing Authority, Clean Energy Project Revenue Bonds, 9/27 at 100.63 N/R 20,492,255
  Green Series 2021A, 4.000%, 10/01/52 (Mandatory Put 12/01/27)      
  Tax Obligation/General – 28.6% (18.3% of Total Investments)      
4,125 Alameda Unified School District, Alameda County, California, General Obligation Bonds, No Opt. Call AA 3,899,940
  Series 2004A, 0.000%, 8/01/25 – AGM Insured      
5,245 California State, General Obligation Bonds, Refunding Various Purpose Series 2012, 9/22 at 100.00 Aa2 5,344,707
  5.000%, 9/01/36      
  California State, General Obligation Bonds, Refunding Various Purpose Series 2013:      
9,260 5.000%, 2/01/29 2/23 at 100.00 Aa2 9,607,620
1,710 5.000%, 2/01/31 2/23 at 100.00 Aa2 1,773,082
  California State, General Obligation Bonds, Refunding Various Purpose Series 2016:      
3,750 5.000%, 9/01/30 9/26 at 100.00 Aa2 4,319,062
4,600 5.000%, 8/01/33 8/26 at 100.00 Aa2 5,280,156
8,000 5.000%, 9/01/37 9/26 at 100.00 Aa2 9,172,720
9,210 California State, General Obligation Bonds, Refunding Various Purpose Series 2019, 10/29 at 100.00 Aa2 9,652,080
  3.000%, 10/01/35      
  California State, General Obligation Bonds, Various Purpose Refunding Series 2015:      
6,700 5.000%, 8/01/32 2/25 at 100.00 Aa2 7,371,340
11,000 5.000%, 8/01/34 8/25 at 100.00 Aa2 12,264,780
5,000 California State, General Obligation Bonds, Various Purpose Refunding Series 2016, 9/26 at 100.00 Aa2 5,737,650
  5.000%, 9/01/36      
140 California State, General Obligation Bonds, Various Purpose Series 2000, 5.625%, 3/22 at 100.00 Aa2 140,582
  5/01/22 – FGIC Insured      
  California State, General Obligation Bonds, Various Purpose Series 2013:      
9,940 5.000%, 4/01/37 4/23 at 100.00 Aa2 10,364,040
9,755 5.000%, 2/01/43 2/23 at 100.00 Aa2 10,104,814
15,145 5.000%, 4/01/43 4/23 at 100.00 Aa2 15,777,607
7,240 5.000%, 11/01/43 11/23 at 100.00 Aa2 7,683,378
  California State, General Obligation Bonds, Various Purpose Series 2014:      
24,970 5.000%, 5/01/32 5/24 at 100.00 Aa2 26,835,259
8,910 5.000%, 10/01/39 10/24 at 100.00 Aa2 9,675,013
10,245 5.000%, 12/01/43 12/23 at 100.00 Aa2 10,899,041
1,815 5.000%, 10/01/44 10/24 at 100.00 Aa2 1,967,950
9,500 California State, General Obligation Bonds, Various Purpose Series 2015, 5.000%, 3/01/45 3/25 at 100.00 Aa2 10,438,125
3,780 California State, General Obligation Bonds, Various Purpose Series 2017, 5.000%, 11/01/47 11/27 at 100.00 Aa2 4,419,463
8,360 California State, General Obligation Bonds, Various Purpose Series 2018, 5.000%, 10/01/47 4/26 at 100.00 Aa2 9,423,894
8,000 California State, General Obligation Bonds, Various Purpose Series 2018. Bid Group A/B, 10/28 at 100.00 Aa2 9,515,200
  5.000%, 10/01/48      
5,000 California State, General Obligation Bonds, Various Purpose Series 2019, 5.000%, 4/01/45 4/29 at 100.00 Aa2 6,002,550
3,550 Centinela Valley Union High School District, Los Angeles County, California, General No Opt. Call A+ 3,863,288
  Obligation Bonds, Series 2002A, 5.250%, 2/01/26 – NPFG Insured      
15,000 Chaffey Joint Union High School District, San Bernardino County, California, General 8/28 at 100.00 Aa1 16,804,650
  Obligation Bonds, Election 2012 Series 2019D, 4.000%, 8/01/49      

 

28

 

 

 

Principal   Optional Call    
Amount (000) Description (1) Provisions (2) Ratings (3) Value
  Tax Obligation/General (continued)      
  Corona-Norco Unified School District, Riverside County, California, General Obligation      
  Bonds, Election 2014, Series 2019C:      
$ 7,860 3.000%, 8/01/44 8/28 at 100.00 AA– $ 7,976,721
5,585 4.000%, 8/01/49 8/28 at 100.00 AA– 6,168,353
3,300 Evergreen School District, Santa Clara County, California, General Obligation Bonds, 8/28 at 100.00 Aa2 3,903,735
  Election of 2014, Series 2018, 5.000%, 8/01/46      
5,150 Hacienda La Puente Unified School District Facilities Financing Authority, California, No Opt. Call AA 5,940,010
  General Obligation Revenue Bonds, Program Series 2007, 5.000%, 8/01/26 – AGM Insured      
3,000 Hacienda La Puente Unified School District, Los Angeles County, California, General 8/27 at 100.00 AAA 3,282,120
  Obligation Bonds, 2016 Election, Series 2017A, 4.000%, 8/01/47      
5,630 Lake Tahoe Unified School District, El Dorado County, California, General Obligation No Opt. Call AA 5,524,494
  Bonds, Series 2010, 0.000%, 8/01/45 – AGM Insured (7)      
4,650 Long Beach Unified School District, Los Angeles County, California, General Obligation 8/29 at 100.00 Aa2 4,748,673
  Bonds, Election of 2016, Series 2019B, 3.000%, 8/01/41      
13,465 Los Angeles Unified School District, Los Angeles County, California, General Obligation 7/30 at 100.00 AA+ 15,184,884
  Bonds, Series 2020RYQ, 4.000%, 7/01/44      
10,050 Manhattan Beach Unified School District, Los Angeles County, California, General 9/30 at 100.00 Aa1 11,525,742
  Obligation Bonds, Election 2016 Measure C Series 2020B, 4.000%, 9/01/45      
4,100 Monrovia Unified School District, Los Angeles County, California, General Obligation No Opt. Call Aa3 3,718,864
  Bonds, Series 2001B, 0.000%, 8/01/27 – FGIC Insured      
3,100 Mount San Antonio Community College District, Los Angeles County, California, General 8/29 at 100.00 Aa1 3,486,012
  Obligation Bonds, Election of 2018, Series 2019A, 4.000%, 8/01/49      
10,765 North Orange County Community College District, California, General Obligation Bonds, No Opt. Call AA+ 9,743,294
  Election of 2002 Series 2003B, 0.000%, 8/01/27 – FGIC Insured      
14,655 Ontario-Montclair School District, San Bernardino County, California, General Obligation 8/27 at 100.00 Aa2 16,111,854
  Bonds, Election of 2016, Series 2019B, 4.000%, 8/01/48      
1,815 Orland Joint Unified School District, Glenn and Tehama Counties, California, General 8/37 at 100.00 AA 1,622,846
  Obligation Bonds, 2008 Election, Series 2012B, 0.000%, 8/01/51 (7)      
10,330 Palomar Pomerado Health, California, General Obligation Bonds, Convertible Capital No Opt. Call A2 6,924,819
  Appreciation, Election 2004 Series 2010A, 0.000%, 8/01/35      
5,000 Paramount Unified School District, Los Angeles County, California, General Obligation 2/33 at 100.00 Aa3 6,444,650
  Bonds, Election 2006 Series 2011, 0.000%, 8/01/45 (7)      
28,000 San Bernardino Community College District, California, General Obligation Bonds, No Opt. Call Aa1 13,592,880
  Election of 2008 Series 2009B, 0.000%, 8/01/44      
5,690 San Francisco Bay Area Rapid Transit District, California, General Obligation Bonds, 8/29 at 100.00 Aaa 5,715,434
  Election of 2016, Green Series 2019B-1, 3.000%, 8/01/49      
21,000 San Marcos Unified School District, San Diego County, California, General Obligation No Opt. Call AA– 8,131,830
  Bonds, 2010 Election, Series 2012B, 0.000%, 8/01/51      
20,220 San Mateo County Community College District, California, General Obligation Bonds, 9/28 at 100.00 AAA 24,468,829
  Election 2014 Series 2018B, 5.000%, 9/01/45      
1,220 San Mateo Union High School District, San Mateo County, California, General Obligation 9/41 at 100.00 Aaa 1,096,133
  Bonds, Election 2010 Series 2011A, 0.000%, 7/01/51 (7)      
4,970 San Rafael City High School District, Marin County, California, General Obligation No Opt. Call AA+ 4,486,270
  Bonds, Series 2004B, 0.000%, 8/01/27 – FGIC Insured      
8,700 Santa Ana College Improvement District 1, Orange County, California, General Obligation 8/27 at 100.00 AA 9,678,054
  Bonds, Rancho Santiago Community College District, Election of 2012, Series 2017B,      
  4.000%, 8/01/41      
6,725 Santa Barbara Unified School District, Santa Barbara County, California, General 8/28 at 100.00 Aa1 7,980,087
  Obligation Bonds, School Facilities Improvement District 1, Election of 2016, Series 2019B,      
  5.000%, 8/01/44      
2,200 Santa Maria Joint Union High School District, Santa Barbara and San Luis Obispo No Opt. Call Aa3 2,342,846
  Counties, California, General Obligation Bonds, Series 2003B, 5.625%, 8/01/24 – AGM Insured      

 

29

 

  

NAC Nuveen California Quality Municipal Income Fund
  Portfolio of Investments (continued)
  February 28, 2022

 

Principal   Optional Call    
Amount (000) Description (1) Provisions (2) Ratings (3) Value
  Tax Obligation/General (continued)      
  Sonoma County Junior College District, California, General Obligation Bonds, Election      
  2014 Series 2019B:      
$ 7,285 3.000%, 8/01/37 8/29 at 100.00 AA $ 7,647,210
4,650 3.000%, 8/01/41 8/29 at 100.00 AA 4,754,997
4,175 Southwestern Community College District, San Diego County, California, General No Opt. Call Aa2 3,959,278
  Obligation Bonds, Election of 2000, Series 2004, 0.000%, 8/01/25 – FGIC Insured      
5,530 Stockton Unified School District, San Joaquin County, California, General Obligation 8/37 at 100.00 AA 6,737,420
  Bonds, Election 2008 Series 2011D, 0.000%, 8/01/50 – AGM Insured (7)      
26,000 Sylvan Union School District, Stanislaus County, California, General Obligation Bonds, No Opt. Call AA 27,132,820
  Election of 2006, Series 2010, 0.000%, 8/01/49 – AGM Insured (7)      
  Washington Township Health Care District, Alameda County, California, General Obligation      
  Bonds, 2004 Election Series 2013B:      
4,740 5.500%, 8/01/38 8/24 at 100.00 A1 5,176,696
4,830 5.500%, 8/01/40 8/24 at 100.00 A1 5,274,988
  Washington Township Health Care District, Alameda County, California, General Obligation      
  Bonds, 2012 Election Series 2013A:      
4,355 5.500%, 8/01/38 8/24 at 100.00 A1 4,756,226
3,500 5.500%, 8/01/40 8/24 at 100.00 A1 3,822,455
2,015 Wiseburn School District, Los Angeles County, California, General Obligation Bonds, 8/22 at 100.00 Aa2 2,050,444
  Series 2012C, 5.000%, 8/01/26      
140,160 Yosemite Community College District, California, General Obligation Bonds, Capital No Opt. Call Aa2 135,067,987
  Appreciation, Election 2004, Series 2010D, 0.000%, 8/01/42 (7)      
624,370 Total Tax Obligation/General     624,517,946
  Tax Obligation/Limited – 19.2% (12.3% of Total Investments)      
1,675 Beaumont Financing Authority, California, Local Agency Revenue Bonds, Improvement Area 9/25 at 100.00 N/R 1,834,695
  19A, Series 2015B, 5.000%, 9/01/35      
1,655 Bell Community Housing Authority, California, Lease Revenue Bonds, Series 2005, 5.000%, 3/22 at 100.00 N/R 1,664,996
  10/01/36 – AMBAC Insured      
1,455 Bell Community Redevelopment Agency, California, Tax Allocation Bonds, Bell Project 3/22 at 100.00 AA 1,484,667
  Area, Series 2003, 5.500%, 10/01/23 – RAAI Insured      
1,175 California Infrastructure and Economic Development Bank, Lease Revenue Bonds, California 8/29 at 100.00 AA 1,409,260
  State Teachers Retirement System Headquarters Expansion, Green Bond-Climate Bond Certified      
  Series 2019, 5.000%, 8/01/38      
  California State Public Works Board, Lease Revenue Bonds, Department of Corrections &      
  Rehabilitation, Series 2013G:      
10,690 5.250%, 9/01/30 9/23 at 100.00 Aa3 11,356,949
18,135 5.250%, 9/01/32 9/23 at 100.00 Aa3 19,266,443
  California State Public Works Board, Lease Revenue Bonds, Department of Corrections &      
  Rehabilitation, Various Correctional Facilities Series 2013F:      
8,685 5.250%, 9/01/31 9/23 at 100.00 Aa3 9,226,857
1,450 5.250%, 9/01/33 9/23 at 100.00 Aa3 1,540,466
10,525 California State Public Works Board, Lease Revenue Bonds, Department of Corrections & 9/24 at 100.00 Aa3 11,399,733
  Rehabilitation, Various Correctional Facilities Series 2014A, 5.000%, 9/01/39      
17,395 California State Public Works Board, Lease Revenue Bonds, Judicial Council of 10/24 at 100.00 Aa3 18,883,838
  California, New Stockton Courthouse, Series 2014B, 5.000%, 10/01/39      
1,000 California State Public Works Board, Lease Revenue Bonds, Judicial Council of 3/23 at 100.00 Aa3 1,037,600
  California, Various Projects Series 2013A, 5.000%, 3/01/30      
1,000 California State Public Works Board, Lease Revenue Bonds, Judicial Council of 6/23 at 100.00 Aa3 1,045,770
  California, Yuba City Courthouse, Series 2013D, 5.000%, 6/01/32      
3,770 California State Public Works Board, Lease Revenue Bonds, Various Capital Projects, 11/22 at 100.00 Aa3 3,876,352
  Series 2012G, 5.000%, 11/01/37      
9,950 California State Public Works Board, Lease Revenue Bonds, Various Capital Projects, 11/23 at 100.00 Aa3 10,525,408
  Series 2013I, 5.000%, 11/01/38      

 

30

 

 

 

Principal   Optional Call    
Amount (000) Description (1) Provisions (2) Ratings (3) Value
  Tax Obligation/Limited (continued)      
$ 13,520 California State Public Works Board, Lease Revenue Bonds, Various Capital Projects, 9/24 at 100.00 Aa3 $ 14,643,647
  Series 2014E, 5.000%, 9/01/39      
  Government of Guam, Business Privilege Tax Bonds, Refunding Series 2015D:      
9,000 5.000%, 11/15/29 11/25 at 100.00 BB 9,985,050
11,000 5.000%, 11/15/35 11/25 at 100.00 BB 12,139,600
1,145 Inglewood Redevelopment Agency, California, Tax Allocation Bonds, Merged Redevelopment No Opt. Call N/R 1,189,815
  Project, Refunding Series 1998A, 5.250%, 5/01/23 – AMBAC Insured      
  Jurupa Public Financing Authority, California, Special Tax Revenue Bonds, Series 2014A:      
530 5.000%, 9/01/29 9/24 at 100.00 A+ 574,997
1,900 5.000%, 9/01/30 9/24 at 100.00 A+ 2,061,310
1,220 5.000%, 9/01/31 9/24 at 100.00 A+ 1,323,273
1,955 Jurupa Public Financing Authority, California, Special Tax Revenue Bonds, Series 2015A, 9/25 at 100.00 A+ 2,169,229
  5.000%, 9/01/43      
810 Lake Elsinore Public Financing Authority, California, Local Agency Revenue Bonds, 9/25 at 100.00 N/R 879,620
  Refunding Series 2015, 5.000%, 9/01/40      
1,000 Lathrop, California, Limited Obligation Improvement Bonds, Crossroads Assessment 9/25 at 100.00 N/R 1,089,170
  District, Series 2015, 5.000%, 9/02/40      
14,930 Los Angeles Community Redevelopment Agency, California, Lease Revenue Bonds, Vermont 3/22 at 100.00 Aa2 14,970,460
  Manchester Social Services Project, Series 2005, 5.000%, 9/01/37 – AMBAC Insured      
  Los Angeles County Metropolitan Transportation Authority, California, Measure R Sales      
  Tax Revenue Bonds, Senior Series 2016A:      
5,125 5.000%, 6/01/36 6/26 at 100.00 AAA 5,832,199
5,620 5.000%, 6/01/37 6/26 at 100.00 AAA 6,393,031
5,210 Los Angeles County Metropolitan Transportation Authority, California, Proposition A 7/27 at 100.00 AAA 6,081,477
  First Tier Senior Sales Tax Revenue Bonds, Green Series 2017A, 5.000%, 7/01/41      
  Los Angeles County Metropolitan Transportation Authority, California, Proposition C      
  Sales Tax Revenue Bonds, Senior Lien Series 2017A:      
10,455 5.000%, 7/01/38 7/27 at 100.00 AAA 12,244,582
3,995 5.000%, 7/01/39 7/27 at 100.00 AAA 4,676,587
15,615 5.000%, 7/01/42 7/27 at 100.00 AAA 18,209,588
9,045 Los Angeles County Public Works Financing Authority, California, Lease Revenue Bonds, 8/22 at 100.00 AA+ 9,208,714
  Multiple Capital Facilities Project II, Series 2012, 5.000%, 8/01/42      
2,000 Los Angeles County Public Works Financing Authority, California, Lease Revenue Bonds, 12/29 at 100.00 AA+ 2,437,840
  Series 2019E-1, 5.000%, 12/01/49      
  Lynwood Redevelopment Agency, California, Tax Allocation Revenue Bonds, Project Area A,      
  Subordinate Lien Series 2011A:      
1,625 6.750%, 9/01/26 3/22 at 100.00 A 1,631,338
750 7.000%, 9/01/31 3/22 at 100.00 A 753,150
1,835 Modesto, California, Special Tax Bonds, Community Facilties District 2004-1 Village One 9/24 at 100.00 BBB+ 1,976,827
  2, Refunding Series 2014, 5.000%, 9/01/31      
1,000 Norco Redevelopment Agency, California, Tax Allocation Bonds, Project Area 1, Series 3/22 at 100.00 A+ 1,004,250
  2009, 7.000%, 3/01/34      
15,390 Ontario Redevelopment Financing Authority, San Bernardino County, California, Revenue No Opt. Call Baa2 16,709,846
  Bonds, Redevelopment Project 1, Refunding Series 1995, 7.400%, 8/01/25 – NPFG Insured      
  Patterson Public Finance Authority, California, Revenue Bonds, Community Facilities      
  District 2001-1, Senior Series 2013A:      
11,265 5.250%, 9/01/30 9/23 at 100.00 N/R 11,789,160
10,100 5.750%, 9/01/39 9/23 at 100.00 N/R 10,608,535
1,595 Patterson Public Finance Authority, California, Revenue Bonds, Community Facilities 9/23 at 100.00 N/R 1,678,227
  District 2001-1, Subordinate Lien Series 2013B, 5.875%, 9/01/39      
8,750 Pittsburg Redevelopment Agency, California, Tax Allocation Bonds, Los Medanos Community No Opt. Call AA– 8,603,787
  Development Project, Series 1999, 0.000%, 8/01/23 – AMBAC Insured      

 

31

 

 

 

NAC Nuveen California Quality Municipal Income Fund
  Portfolio of Investments (continued)
  February 28, 2022

 

Principal   Optional Call    
Amount (000) Description (1) Provisions (2) Ratings (3) Value
  Tax Obligation/Limited (continued)      
  Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, Restructured 2018A-1:      
$ 10,995 0.000%, 7/01/46 7/28 at 41.38 N/R $ 3,571,836
49,372 5.000%, 7/01/58 7/28 at 100.00 N/R 55,368,229
43 Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, Taxable 7/28 at 100.00 N/R 47,027
  Restructured Cofina Project Series 2019A-2, 4.536%, 7/01/53      
3,500 Rancho Cucamonga Redevelopment Agency Successor Agency, California, Tax Allocation 9/24 at 100.00 AA+ 3,814,685
  Bonds, Rancho Redevelopment Project, Series 2014, 5.000%, 9/01/30      
5,000 Riverside County Transportation Commission, California, Sales Tax Revenue Bonds, 12/27 at 100.00 AA+ 5,924,550
  Refunding Limited Tax Series 2017B, 5.000%, 6/01/39      
  Riverside County, California, Special Tax Bonds, Community Facilities District 04-2 Lake      
  Hill Crest, Series 2012:      
990 5.000%, 9/01/29 9/22 at 100.00 N/R 1,005,206
2,615 5.000%, 9/01/35 9/22 at 100.00 N/R 2,652,761
  Riverside County, California, Special Tax Bonds, Community Facilities District 05-8      
  Scott Road, Series 2013:      
555 5.000%, 9/01/30 9/22 at 100.00 N/R 563,231
710 5.000%, 9/01/42 9/22 at 100.00 N/R 719,919
  Roseville, California, Special Tax Bonds, Community Facilities District 1 Westpark,      
  Refunding Series 2015:      
385 5.000%, 9/01/31 9/25 at 100.00 N/R 421,775
575 5.000%, 9/01/37 9/25 at 100.00 N/R 628,147
5,500 Sacramento Area Flood Control Agency, California, Consolidated Capital Assessment 10/26 at 100.00 AA 6,254,160
  District 2 Bonds, Series 2016A, 5.000%, 10/01/41      
  Sacramento Area Flood Control Agency, California, Consolidated Capital Assessment      
  District 2 Bonds, Series 2020:      
2,540 4.000%, 10/01/40 10/30 at 100.00 AA 2,925,293
8,245 4.000%, 10/01/43 10/30 at 100.00 AA 9,426,179
4,250 Sacramento City Financing Authority, California, Tax Allocation Revenue Bonds, Merged No Opt. Call A 3,327,028
  Downtown Sacramento and Oak Park Projects, Series 2005A, 0.000%, 12/01/31 – FGIC Insured      
  San Buenaventura Redevelopment Agency, California, Tax Allocation Bonds, Merged Project      
  Areas, Series 2008:      
1,000 7.750%, 8/01/28 3/22 at 100.00 A 1,005,030
1,325 8.000%, 8/01/38 3/22 at 100.00 A 1,332,168
615 San Clemente, California, Special Tax Revenue Bonds, Community Facilities District 9/25 at 100.00 N/R 669,581
  2006-1 Marblehead Coastal, Series 2015, 5.000%, 9/01/40      
5,000 San Francisco Bay Area Rapid Transit District, California, Sales Tax Revenue Bonds, 7/27 at 100.00 AA+ 5,089,900
  Series 2019A, 3.000%, 7/01/44      
255 San Francisco City and County Redevelopment Agency Successor Agency, California, Special 8/22 at 100.00 N/R 257,966
  Tax Bonds, Community Facilities District 6 Mission Bay South Public Improvements, Refunding      
  Series 2013A, 5.000%, 8/01/33      
1,855 San Francisco City and County Redevelopment Agency Successor Agency, California, Special 8/24 at 100.00 N/R 1,950,495
  Tax Bonds, Community Facilities District 7, Hunters Point Shipyard Phase One Improvements,      
  Refunding Series 2014, 5.000%, 8/01/39      
5,000 San Francisco City and County Redevelopment Agency Successor Agency, California, Tax 8/26 at 100.00 A 5,702,750
  Allocation Bonds, Mission Bay North Redevelopment Project, Refunding Series 2016A, 5.000%,      
  8/01/41 – NPFG Insured      
1,315 Signal Hill Redevelopment Agency, California, Project 1 Tax Allocation Bonds, Series 3/22 at 100.00 N/R 1,320,313
  2011, 7.000%, 10/01/26      
2,500 Stockton Public Financing Authority, California, Revenue Bonds, Arch Road East Community 9/25 at 103.00 N/R 2,768,975
  Facility District 99-02, Series 2018A, 5.000%, 9/01/37      

 

32

 

 

 

Principal   Optional Call    
Amount (000) Description (1) Provisions (2) Ratings (3) Value
  Tax Obligation/Limited (continued)      
  Temecula Public Financing Authority, California, Special Tax Bonds, Community Facilities      
  District 16-01, Series 2017:      
$ 1,370 5.500%, 9/01/27, 144A No Opt. Call N/R $ 1,452,077
1,455 5.750%, 9/01/32, 144A 9/27 at 100.00 N/R 1,600,413
5,560 6.250%, 9/01/47, 144A 9/27 at 100.00 N/R 6,092,036
1,350 Temecula Valley Unified School District, Riverside County, California, Special Tax 9/22 at 100.00 N/R 1,368,671
  Bonds, Community Facilities District 2002-1 Improvement Area 1, Series 2012, 5.000%, 9/01/33      
4,085 Transbay Joint Powers Authority, California, Tax Allocation Bonds, Senior Green Series 4/30 at 100.00 A– 4,896,608
  2020A, 5.000%, 10/01/49      
1,565 Tustin, California, Special Tax Bonds, Community Facilities District 06-1 Tustin 9/25 at 100.00 A– 1,748,512
  Legacy/Columbus Villages, Refunding Series 2015A, 5.000%, 9/01/32      
6,870 Vernon Redevelopment Agency, California, Tax Allocation Bonds, Industrial Redevelopment 3/22 at 100.00 Baa2 7,012,827
  Project, Series 2005, 5.000%, 9/01/35 – NPFG Insured      
1,620 Virgin Islands Public Finance Authority, Gross Receipts Taxes Loan Note, Refunding 10/22 at 100.00 AA 1,648,593
  Series 2012A, 5.000%, 10/01/32 – AGM Insured      
1,280 William S Hart School Financing Authority, California, Refunding Revenue Bonds, Series 9/23 at 100.00 A 1,352,358
  2013, 5.000%, 9/01/34      
394,240 Total Tax Obligation/Limited     419,337,642
  Transportation – 19.6% (12.5% of Total Investments)      
  Alameda Corridor Transportation Authority, California, Revenue Bonds, Refunding Second      
  Subordinate Lien Series 2016B:      
6,990 5.000%, 10/01/34 10/26 at 100.00 BBB+ 7,866,756
5,445 5.000%, 10/01/36 10/26 at 100.00 BBB+ 6,118,165
  California Municipal Finance Authority, Revenue Bonds, Linxs APM Project, Senior Lien      
  Series 2018A:      
2,040 4.000%, 12/31/47 (AMT) 6/28 at 100.00 A2 2,148,508
3,500 5.000%, 12/31/47 (AMT) 6/28 at 100.00 BBB– 3,983,105
1,600 California Municipal Finance Authority, Revenue Bonds, Linxs APM Project, Senior Lien 6/28 at 100.00 BBB– 1,816,880
  Series 2018B, 5.000%, 6/01/48 (AMT)      
2,295 California Municipal Finance Authority, Special Facility Revenue Bonds, United Airlines, No Opt. Call B+ 2,473,987
  Inc. Los Angeles International Airport Project, Series 2019, 4.000%, 7/15/29 (AMT)      
1,200 Long Beach, California, Harbor Revenue Bonds, Series 2015D, 5.000%, 5/15/42 5/25 at 100.00 AA 1,317,936
870 Long Beach, California, Harbor Revenue Bonds, Series 2017C, 5.000%, 5/15/47 5/27 at 100.00 AA 1,008,434
10,840 Long Beach, California, Harbor Revenue Bonds, Series 2019A, 5.000%, 5/15/44 5/29 at 100.00 Aa2 13,127,782
4,000 Los Angeles Department of Airports, California, Revenue Bonds, Los Angeles International 5/32 at 100.00 N/R 3,934,320
  Airport, Refunding & Subordinate Series 2022C, 3.250%, 5/15/49 (AMT)      
5,000 Los Angeles Department of Airports, California, Revenue Bonds, Los Angeles International 5/25 at 100.00 Aa2 5,416,950
  Airport, Senior Lien Series 2015A, 4.750%, 5/15/40 (AMT)      
  Los Angeles Department of Airports, California, Revenue Bonds, Los Angeles International      
  Airport, Senior Lien Series 2015D:      
2,600 5.000%, 5/15/31 (AMT) 5/25 at 100.00 Aa2 2,846,168
11,420 5.000%, 5/15/33 (AMT) 5/25 at 100.00 Aa2 12,501,246
3,000 5.000%, 5/15/36 (AMT) 5/25 at 100.00 Aa2 3,284,040
11,335 5.000%, 5/15/41 (AMT) 5/25 at 100.00 Aa2 12,408,198
10,000 Los Angeles Department of Airports, California, Revenue Bonds, Los Angeles International 5/30 at 100.00 Aa2 11,991,700
  Airport, Senior Lien Series 2020C, 5.000%, 5/15/39 (AMT)      

 

33

 

 

 

NAC Nuveen California Quality Municipal Income Fund
  Portfolio of Investments (continued)
  February 28, 2022

 

Principal   Optional Call    
Amount (000) Description (1) Provisions (2) Ratings (3) Value
  Transportation (continued)      
$ 3,090 Los Angeles Department of Airports, California, Revenue Bonds, Los Angeles International 5/30 at 100.00 Aa2 $ 3,755,215
  Airport, Senior Lien Series 2020D, 5.000%, 5/15/44      
  Los Angeles Department of Airports, California, Revenue Bonds, Los Angeles International      
  Airport, Subordinate Lien Series 2016B:      
1,765 5.000%, 5/15/30 (AMT) 5/26 at 100.00 Aa3 1,977,259
1,000 5.000%, 5/15/34 (AMT) 5/26 at 100.00 Aa3 1,119,630
6,835 5.000%, 5/15/46 (AMT) 5/26 at 100.00 Aa3 7,630,731
  Los Angeles Department of Airports, California, Revenue Bonds, Los Angeles International      
  Airport, Subordinate Lien Series 2017A:      
13,680 5.000%, 5/15/42 (AMT) 5/27 at 100.00 Aa3 15,560,179
11,900 5.000%, 5/15/47 (AMT) 5/27 at 100.00 Aa3 13,536,607
4,850 Los Angeles Department of Airports, California, Revenue Bonds, Los Angeles International 5/28 at 100.00 Aa3 5,573,862
  Airport, Subordinate Lien Series 2018A, 5.000%, 5/15/44 (AMT)      
22,015 Los Angeles Department of Airports, California, Revenue Bonds, Los Angeles International 11/27 at 100.00 Aa3 25,268,377
  Airport, Subordinate Lien Series 2018C, 5.000%, 5/15/44 (AMT)      
1,250 Los Angeles Department of Airports, California, Revenue Bonds, Los Angeles International 5/29 at 100.00 Aa3 1,460,000
  Airport, Subordinate Lien Series 2018D, 5.000%, 5/15/43 (AMT)      
1,000 Los Angeles Department of Airports, California, Revenue Bonds, Los Angeles International 11/28 at 100.00 Aa3 1,176,410
  Airport, Subordinate Lien Series 2019D, 5.000%, 5/15/32 (AMT)      
5,485 Los Angeles Department of Airports, California, Revenue Bonds, Los Angeles International 11/28 at 100.00 Aa3 6,487,439
  Airport, Subordinate Lien Series 2019E, 5.000%, 5/15/44      
2,000 Los Angeles Department of Airports, California, Revenue Bonds, Los Angeles International 5/29 at 100.00 Aa3 2,360,180
  Airport, Subordinate Lien Series 2019F, 5.000%, 5/15/36 (AMT)      
6,665 Los Angeles Department of Airports, California, Revenue Bonds, Los Angeles International 5/32 at 100.00 N/R 7,350,295
  Airport, Subordinate Lien Series 2022A, 4.000%, 5/15/49 (AMT)      
5,000 Los Angeles Harbors Department, California, Revenue Bonds, Refunding Series 2014B, 8/24 at 100.00 AA 5,429,950
  5.000%, 8/01/44      
  Los Angeles Harbors Department, California, Revenue Bonds, Series 2014C:      
1,160 5.000%, 8/01/34 8/24 at 100.00 AA 1,264,272
1,575 5.000%, 8/01/35 8/24 at 100.00 AA 1,716,010
1,865 5.000%, 8/01/36 8/24 at 100.00 AA 2,031,321
6,610 5.000%, 8/01/44 8/24 at 100.00 AA 7,178,394
3,250 Riverside County Transportation Commission, California, Toll Revenue Senior Lien Bonds, 6/31 at 100.00 A 3,658,980
  RCTC 91 Express Lanes, Refunding Series 2021B-1, 4.000%, 6/01/39      
5,000 San Diego County Regional Airport Authority, California, Airport Revenue Bonds, 7/29 at 100.00 A+ 5,973,050
  Refunding Subordinate Series 2019A, 5.000%, 7/01/39      
5,000 San Francisco Airports Commission, California, Revenue Bonds, San Francisco 5/27 at 100.00 A1 5,740,750
  International Airport, Governmental Purpose Second Series 2017B, 5.000%, 5/01/47      
22,930 San Francisco Airports Commission, California, Revenue Bonds, San Francisco 5/26 at 100.00 A1 25,712,097
  International Airport, Second Governmental Purpose Series 2016C, 5.000%, 5/01/46      
4,500 San Francisco Airports Commission, California, Revenue Bonds, San Francisco 5/24 at 100.00 A1 4,827,150
  International Airport, Second Series 2014B, 5.000%, 5/01/44      
50,075 San Francisco Airports Commission, California, Revenue Bonds, San Francisco 5/26 at 100.00 A1 55,853,154
  International Airport, Second Series 2016B, 5.000%, 5/01/46 (AMT)      

 

34

 

 

 

         
Principal   Optional Call    
Amount (000) Description (1) Provisions (2) Ratings (3) Value
  Transportation (continued)      
  San Francisco Airports Commission, California, Revenue Bonds, San Francisco      
  International Airport, Second Series 2017A:      
$ 2,500 5.250%, 5/01/42 (AMT) 5/27 at 100.00 A1 $ 2,858,400
19,965 5.000%, 5/01/47 (AMT) 5/27 at 100.00 A+ 22,452,639
  San Francisco Airports Commission, California, Revenue Bonds, San Francisco      
  International Airport, Second Series 2018D:      
37,935 5.000%, 5/01/43 (AMT) 5/28 at 100.00 A1 43,573,279
20,000 5.250%, 5/01/48 (AMT) 5/28 at 100.00 A1 23,145,400
9,350 San Francisco Airports Commission, California, Revenue Bonds, San Francisco 5/28 at 100.00 A1 10,861,614
  International Airport, Second Series 2018E, 5.000%, 5/01/48      
2,000 San Francisco Airports Commission, California, Revenue Bonds, San Francisco 5/29 at 100.00 A1 2,313,860
  International Airport, Second Series 2019A, 5.000%, 5/01/44 (AMT)      
  San Francisco Airports Commission, California, Revenue Bonds, San Francisco      
  International Airport, Second Series 2019E:      
4,900 5.000%, 5/01/39 (AMT) 5/29 at 100.00 A1 5,716,536
3,335 5.000%, 5/01/40 (AMT) 5/29 at 100.00 A1 3,885,308
  San Jose, California, Airport Revenue Bonds, Refunding Series 2017A:      
3,250 5.000%, 3/01/36 (AMT) 3/27 at 100.00 A2 3,669,998
3,000 5.000%, 3/01/37 (AMT) 3/27 at 100.00 A2 3,385,230
376,870 Total Transportation     426,747,751
  U.S. Guaranteed – 26.4% (16.8% of Total Investments) (8)      
4,000 ABAG Finance Authority for Non-Profit Corporations, California, Revenue Bonds, The 7/22 at 100.00 A1 4,057,680
  Jackson Laboratory, Series 2012, 5.000%, 7/01/37 (Pre-refunded 7/01/22)      
18,400 Antelope Valley Community College District, Los Angeles County, California, General 2/27 at 100.00 AA 21,747,512
  Obligation Bonds, Election 2016 Series 2017A, 5.250%, 8/01/42 (Pre-refunded 2/15/27)      
5,705 Bay Area Toll Authority, California, Revenue Bonds, San Francisco Bay Area Toll Bridge, 4/23 at 100.00 A1 5,972,507
  Series 2013S-4, 5.250%, 4/01/48 (Pre-refunded 4/01/23)      
9,500 Bay Area Toll Authority, California, Revenue Bonds, San Francisco Bay Area Toll Bridge, 4/29 at 100.00 AA– 11,636,550
  Subordinate Series 2019S-H, 5.000%, 4/01/49 (Pre-refunded 4/01/29)      
7,000 Bay Area Water Supply and Conservation Agency, California, Revenue Bonds, Capital Cost 4/23 at 100.00 AA– 7,305,620
  Recovery Prepayment Program, Series 2013A, 5.000%, 10/01/34 (Pre-refunded 4/01/23)      
1,285 California Health Facilities Financing Authority, California, Revenue Bonds, Sutter 8/25 at 100.00 A1 1,441,770
  Health, Refunding Series 2015A, 5.000%, 8/15/43 (Pre-refunded 8/15/25)      
15,535 California Health Facilities Financing Authority, California, Revenue Bonds, Sutter 11/26 at 100.00 N/R 18,034,892
  Health, Refunding Series 2016B, 5.000%, 11/15/46 (Pre-refunded 11/15/26)      
16,250 California Health Facilities Financing Authority, California, Revenue Bonds, Sutter 11/25 at 100.00 A1 18,361,525
  Health, Series 2016A, 5.000%, 11/15/46 (Pre-refunded 11/15/25)      
1,700 California Health Facilities Financing Authority, Revenue Bonds, Providence Health & 10/24 at 100.00 N/R 1,861,347
  Services, Refunding Series 2014A, 5.000%, 10/01/38 (Pre-refunded 10/01/24)      
5,360 California Infrastructure and Economic Development Bank, First Lien Revenue Bonds, San 10/21 at 100.00 AA+ 5,646,170
  Francisco Bay Area Toll Bridge, Series 2003A, 5.000%, 7/01/23 – AGM Insured (ETM)      
21,255 California Infrastructure and Economic Development Bank, Infrastructure State Revolving 10/26 at 100.00 AAA 24,645,598
  Fund Revenue Bonds, Series 2016A, 5.000%, 10/01/41 (Pre-refunded 10/01/26)      

 

35

 

 

 

NAC Nuveen California Quality Municipal Income Fund
  Portfolio of Investments (continued)
  February 28, 2022

 

Principal   Optional Call    
Amount (000) Description (1) Provisions (2) Ratings (3) Value
  U.S. Guaranteed (8) (continued)      
  California Municipal Finance Authority, Mobile Home Park Revenue Bonds, Caritas Projects      
  Series 2012A:      
$ 6,540 5.125%, 8/15/32 (Pre-refunded 8/15/22) 8/22 at 100.00 A– $ 6,671,716
6,010 5.500%, 8/15/47 (Pre-refunded 8/15/22) 8/22 at 100.00 A– 6,141,198
3,920 California Municipal Finance Authority, Mobile Home Park Revenue Bonds, Caritas Projects 8/22 at 100.00 N/R 4,034,895
  Series 2012B, 7.250%, 8/15/47 (Pre-refunded 8/15/22)      
18,250 California Municipal Finance Authority, Revenue Bonds, Pomona College, Series 2017, 1/28 at 100.00 AAA 21,877,188
  5.000%, 1/01/48 (Pre-refunded 1/01/28)      
2,650 California State Public Works Board, Lease Revenue Bonds, Various Capital Projects, 4/22 at 100.00 Aa3 2,659,673
  Series 2012A, 5.000%, 4/01/33 (Pre-refunded 4/01/22)      
5,500 California Statewide Communities Development Authority, Revenue Bonds, Buck Institute 11/24 at 100.00 AA 6,052,750
  for Research on Aging, Series 2014, 5.000%, 11/15/44 (Pre-refunded 11/15/24) – AGM Insured      
2,670 California Statewide Communities Development Authority, Revenue Bonds, Huntington 7/24 at 100.00 A– 2,897,591
  Memorial Hospital, Refunding Series 2014B, 5.000%, 7/01/44 (Pre-refunded 7/01/24)      
7,500 Desert Community College District, Riverside County, California, General Obligation 2/26 at 100.00 AA 8,538,825
  Bonds, Refunding Series 2016, 5.000%, 8/01/37 (Pre-refunded 2/01/26)      
20,725 Foothill/Eastern Transportation Corridor Agency, California, Toll Road Revenue Bonds, 1/24 at 100.00 BBB+ 22,557,090
  Refunding Junior Lien Series 2013C, 6.500%, 1/15/43 (Pre-refunded 1/15/24)      
  Foothill/Eastern Transportation Corridor Agency, California, Toll Road Revenue Bonds,      
  Refunding Series 2013A:      
45,735 5.750%, 1/15/46 (Pre-refunded 1/15/24) 1/24 at 100.00 A– 49,609,212
45,725 6.000%, 1/15/53 (Pre-refunded 1/15/24) 1/24 at 100.00 A– 49,782,179
1,000 Fullerton Community Facilities District 1, California, Special Tax Bonds, Amerige 9/22 at 100.00 A+ 1,021,290
  Heights, Refunding Series 2012, 5.000%, 9/01/32 (Pre-refunded 9/01/22)      
  Golden State Tobacco Securitization Corporation, California, Enhanced Tobacco Settlement      
  Asset-Backed Revenue Bonds, Refunding Series 2015A:      
1,460 5.000%, 6/01/40 (Pre-refunded 6/01/25) 6/25 at 100.00 AA– 1,627,301
1,790 5.000%, 6/01/40 (Pre-refunded 6/01/25) 6/25 at 100.00 N/R 1,996,315
86,320 5.000%, 6/01/45 (Pre-refunded 6/01/25) 6/25 at 100.00 Aa3 96,269,243
1,000 Golden State Tobacco Securitization Corporation, California, Enhanced Tobacco Settlement 6/23 at 100.00 Aa3 1,049,730
  Asset-Backed Revenue Bonds, Series 2013A, 5.000%, 6/01/30 (Pre-refunded 6/01/23)      
22,545 Golden State Tobacco Securitization Corporation, California, Tobacco Settlement 6/22 at 100.00 B– 22,810,129
  Asset-Backed Bonds, Senior Convertible Series 2007A-2, 5.300%, 6/01/37 (Pre-refunded 6/01/22)      
35,735 Golden State Tobacco Securitization Corporation, California, Tobacco Settlement 6/22 at 100.00 N/R 36,150,955
  Asset-Backed Bonds, Series 2018A-1, 5.250%, 6/01/47 (Pre-refunded 6/01/22)      
26,755 Golden State Tobacco Securitization Corporation, California, Tobacco Settlement 6/22 at 100.00 N/R 27,043,151
  Asset-Backed Bonds, Series 2018A-2, 5.000%, 6/01/47 (Pre-refunded 6/01/22)      
4,000 Hesperia Unified School District, San Bernardino County, California, Certificates of 2/23 at 100.00 AA 4,147,920
  Participation, Series 2013A, 5.000%, 2/01/38 (Pre-refunded 2/01/23) – BAM Insured      
5,840 Orange County Water District, California, Revenue Certificates of Participation, Series No Opt. Call N/R 7,097,235
  1999A, 5.375%, 8/15/29 (ETM)      
905 Orange County Water District, California, Revenue Certificates of Participation, Series 8/32 at 100.00 N/R 1,180,663
  2003B, 5.000%, 8/15/34 (Pre-refunded 8/15/32) – NPFG Insured      
2,370 Oxnard School District, Ventura County, California, General Obligation Bonds, Election 8/23 at 100.00 AA 2,503,597
  2012 Series 2013B, 5.000%, 8/01/43 (Pre-refunded 8/01/23) – AGM Insured      
9,385 Pajaro Valley Unified School District, Santa Cruz County, California, General Obligation 8/23 at 100.00 Aa3 9,914,032
  Bonds, Refunding Election 2012 Series 2013A, 5.000%, 8/01/43 (Pre-refunded 8/01/23)      

 

36

 

 

 

Principal   Optional Call    
Amount (000) Description (1) Provisions (2) Ratings (3) Value
  U.S. Guaranteed (8) (continued)      
$ 685 Pomona, California, GNMA/FHLMC Collateralized Single Family Mortgage Revenue Refunding No Opt. Call AA+ $ 725,203
  Bonds, Series 1990B, 7.500%, 8/01/23 (ETM)      
  Port of Oakland, California, Revenue Bonds, Refunding Series 2012P:      
4,895 5.000%, 5/01/29 (Pre-refunded 5/01/22) (AMT) 5/22 at 100.00 A+ 4,930,244
7,340 5.000%, 5/01/31 (Pre-refunded 5/01/22) (AMT) 5/22 at 100.00 A+ 7,392,848
2,000 Puerto Rico Public Finance Corporation, Commonwealth Appropriation Bonds, Series 2002E, No Opt. Call N/R 2,378,880
  6.000%, 8/01/26 (ETM)      
1,000 Riverside County Transportation Commission, California, Toll Revenue Senior Lien Bonds, 6/23 at 100.00 A 1,059,650
  Series 2013A, 5.750%, 6/01/44 (Pre-refunded 6/01/23)      
1,460 Rohnert Park Community Development Commission, California, Tax Allocation Bonds, 3/22 at 100.00 Baa2 1,533,161
  Redevelopment Project Series 2007R, 5.000%, 8/01/37 – FGIC Insured (ETM)      
5,825 Sacramento, California, Wastewater Revenue Bonds, Series 2013, 5.000%, 9/01/42 9/23 at 100.00 AA 6,170,423
  (Pre-refunded 9/01/23)      
4,250 San Diego Community College District, San Diego County, California, General Obligation 8/26 at 100.00 AAA 4,905,903
  Bonds, Refunding Series 2016, 5.000%, 8/01/41 (Pre-refunded 8/01/26)      
9,550 San Diego County Regional Airport Authority, California, Airport Revenue Bonds, Senior 7/23 at 100.00 AA– 10,040,297
  Series 2013B, 5.000%, 7/01/43 (Pre-refunded 7/01/23) (AMT)      
2,135 San Diego County Regional Transportation Commission, California, Sales Tax Revenue 4/22 at 100.00 AAA 2,142,793
  Bonds, Refunding Series 2012A, 5.000%, 4/01/42 (Pre-refunded 4/01/22)      
5,000 San Diego County Regional Transportation Commission, California, Sales Tax Revenue 4/24 at 100.00 AAA 5,392,900
  Bonds, Series 2014A, 5.000%, 4/01/44 (Pre-refunded 4/01/24)      
750 San Francisco City and County Public Utilities Commission, California, Water Revenue 5/22 at 0.00 Aa2 772,103
  Bonds, Tender Option Bond Trust 2015-XF0226, 17.713%, 11/01/43 (Pre-refunded      
  5/01/22), 144A (IF) (9)      
  Silicon Valley Clean Water, Mateo County, California, Wastewater Revenue Bonds, Series 2015:      
3,000 5.000%, 8/01/40 (Pre-refunded 8/01/25) 8/25 at 100.00 Aa2 3,372,660
1,600 5.000%, 8/01/45 (Pre-refunded 8/01/25) 8/25 at 100.00 Aa2 1,798,752
8,760 University of California Regents, Medical Center Pooled Revenue Bonds, Series 2013J, 5/23 at 100.00 AA– 9,214,381
  5.250%, 5/15/31 (Pre-refunded 5/15/23)      
528,570 Total U.S. Guaranteed     576,175,247
  Utilities – 25.9% (16.5% of Total Investments)      
  Bay Area Water Supply and Conservation Agency, California, Revenue Bonds, Capital Cost      
  Recovery Prepayment Program, Series 2013A:      
2,000 5.000%, 10/01/27 4/23 at 100.00 AA– 2,087,320
6,010 5.000%, 10/01/29 4/23 at 100.00 AA– 6,272,397
5,000 California Infrastructure and Economic Development Bank. Clean Water State Revolving 4/28 at 100.00 AAA 5,913,850
  Fund Revenue Bonds, Green Series 2018, 5.000%, 10/01/43      
  California Pollution Control Financing Authority, Water Furnishing Revenue Bonds,      
  Poseidon Resources Channelside LP Desalination Project, Series 2012:      
3,925 5.000%, 7/01/37 (AMT), 144A 1/23 at 100.00 BBB 3,998,790
65,500 5.000%, 11/21/45 (AMT), 144A 1/23 at 100.00 BBB 66,724,195
75 California Statewide Community Development Authority, Water and Wastewater Revenue 3/22 at 100.00 AA 75,259
  Bonds, Pooled Financing Program, Series 2003A, 5.250%, 10/01/23 – AGM Insured      
245 California Statewide Community Development Authority, Water and Wastewater Revenue 3/22 at 100.00 AA 245,948
  Bonds, Pooled Financing Program, Series 2004A, 5.250%, 10/01/24 – AGM Insured      

 

37

 

 

 

   
NAC Nuveen California Quality Municipal Income Fund
  Portfolio of Investments (continued)
  February 28, 2022

 

         
Principal   Optional Call    
Amount (000) Description (1) Provisions (2) Ratings (3) Value
  Utilities (continued)      
  East Bay Municipal Utility District, Alameda and Contra Costa Counties, California,      
  Water System Revenue Bonds, Green Series 2017A:      
$ 5,000 5.000%, 6/01/42 6/27 at 100.00 AAA $ 5,820,200
2,200 5.000%, 6/01/45 6/27 at 100.00 AAA 2,557,302
8,715 East Bay Municipal Utility District, Alameda and Contra Costa Counties, California, 6/29 at 100.00 AAA 10,578,093
  Water System Revenue Bonds, Green Series 2019A, 5.000%, 6/01/44      
10,000 East Bay Municipal Utility District, Alameda and Contra Costa Counties, California, 6/24 at 100.00 AAA 10,764,100
  Water System Revenue Bonds, Series 2014C, 5.000%, 6/01/44      
  Long Beach Bond Finance Authority, California, Natural Gas Purchase Revenue Bonds,      
  Series 2007A:      
14,140 5.000%, 11/15/35 No Opt. Call AA– 17,978,869
7,610 5.500%, 11/15/37 No Opt. Call AA– 10,383,845
8,980 Los Angeles Department of Water and Power, California, Power System Revenue Bonds, 7/29 at 100.00 Aa2 10,831,496
  Refunding Series 2019D, 5.000%, 7/01/44      
33,735 Los Angeles Department of Water and Power, California, Power System Revenue Bonds, 7/22 at 100.00 Aa2 34,166,808
  Series 2012B, 5.000%, 7/01/43      
4,865 Los Angeles Department of Water and Power, California, Power System Revenue Bonds, 7/23 at 100.00 Aa2 5,118,077
  Series 2013B, 5.000%, 7/01/28      
4,000 Los Angeles Department of Water and Power, California, Power System Revenue Bonds, 1/24 at 100.00 Aa2 4,264,120
  Series 2014B, 5.000%, 7/01/43      
43,605 Los Angeles Department of Water and Power, California, Power System Revenue Bonds, 1/27 at 100.00 Aa2 50,038,482
  Series 2017A, 5.000%, 7/01/42      
53,615 Los Angeles Department of Water and Power, California, Power System Revenue Bonds, 7/27 at 100.00 Aa2 61,991,271
  Series 2017C, 5.000%, 7/01/47      
10,650 Los Angeles Department of Water and Power, California, Power System Revenue Bonds, 1/28 at 100.00 Aa2 12,551,557
  Series 2018A, 5.000%, 7/01/38      
  Los Angeles Department of Water and Power, California, Power System Revenue Bonds,      
  Series 2018D:      
8,960 5.000%, 7/01/38 7/28 at 100.00 Aa2 10,689,549
8,215 5.000%, 7/01/39 7/28 at 100.00 Aa2 9,792,280
4,000 Los Angeles Department of Water and Power, California, Power System Revenue Bonds, 7/29 at 100.00 AA– 4,789,560
  Series 2019C, 5.000%, 7/01/49      
7,000 Los Angeles Department of Water and Power, California, Power System Revenue Bonds, 1/31 at 100.00 Aa2 8,501,360
  Series 2021B, 5.000%, 7/01/51      
3,000 Los Angeles Department of Water and Power, California, Power System Revenue Bonds, 7/22 at 100.00 Aa2 3,153,690
  Tender Option Bond Trust 3345. As Of 6/4/2015 Converted to Trust 2015-XF2047, 17.312%,      
  7/01/43, 144A (IF) (9)      
2,355 Los Angeles Department of Water and Power, California, Waterworks Revenue Bonds, Series 7/22 at 100.00 AA+ 2,385,945
  2012B, 5.000%, 7/01/37      
24,070 Los Angeles Department of Water and Power, California, Waterworks Revenue Bonds, Series 7/24 at 100.00 AA+ 26,057,941
  2014A, 5.000%, 7/01/44      
6,770 Los Angeles Department of Water and Power, California, Waterworks Revenue Bonds, Series 1/26 at 100.00 AA+ 7,581,994
  2016A, 5.000%, 7/01/46      

 

38

 

 

 

         
Principal   Optional Call    
Amount (000) Description (1) Provisions (2) Ratings (3) Value
  Utilities (continued)      
$ 10,000 Los Angeles Department of Water and Power, California, Waterworks Revenue Bonds, Series 1/27 at 100.00 AA+ $ 11,510,500
  2017A, 5.000%, 7/01/41      
10,000 Los Angeles Department of Water and Power, California, Waterworks Revenue Bonds, Series 1/28 at 100.00 AA+ 11,707,900
  2018A, 5.000%, 7/01/48      
  Los Angeles Department of Water and Power, California, Waterworks Revenue Bonds,      
  Series 2018B:      
2,000 5.000%, 7/01/38 7/28 at 100.00 AA+ 2,391,340
6,650 5.000%, 7/01/48 7/28 at 100.00 AA+ 7,877,457
  Los Angeles Department of Water and Power, California, Waterworks Revenue Bonds,      
  Series 2020A:      
5,000 5.000%, 7/01/41 7/30 at 100.00 Aa2 6,157,600
4,000 5.000%, 7/01/47 7/30 at 100.00 Aa2 4,869,200
4,500 Los Angeles Department of Water and Power, California, Waterworks Revenue Bonds, Series 7/30 at 100.00 Aa2 5,582,070
  2020C, 5.000%, 7/01/39      
1,490 Los Angeles, California, Wastewater System Revenue Bonds, Green Series 2015C, 6/25 at 100.00 AA+ 1,645,213
  5.000%, 6/01/45      
4,420 Los Angeles, California, Wastewater System Revenue Bonds, Green Subordinate Lien Series 6/27 at 100.00 AA 5,200,307
  2017A, 5.250%, 6/01/47      
5,000 Los Angeles, California, Wastewater System Revenue Bonds, Green Subordinate Series 6/28 at 100.00 AA 5,960,200
  2018A, 5.000%, 6/01/48      
  Los Angeles, California, Wastewater System Revenue Bonds, Refunding Subordinate Lien      
  Series 2013A:      
1,245 5.000%, 6/01/34 6/23 at 100.00 AA 1,304,200
6,840 5.000%, 6/01/35 6/23 at 100.00 AA 7,164,421
4,700 Metropolitan Water District of Southern California, Water Revenue Bonds, Series 2020A, 10/29 at 100.00 AAA 5,678,963
  5.000%, 10/01/49      
7,500 Metropolitan Water District of Southern California, Water Revenue Bonds, Series 2021A, 4/31 at 100.00 AAA 9,351,900
  5.000%, 10/01/46      
7,525 Moulton Niguel Water District, California, Certificates of Participation, Series 2019, 3/29 at 100.00 AAA 7,670,157
  3.000%, 9/01/44      
3,500 Placerville Public Financing Authority, California, Wastewater System Refinancing and 3/22 at 100.00 N/R 3,535,035
  Improvement Project Revenue Bonds, Series 2006, 5.000%, 9/01/34 – SYNCORA GTY Insured      
  Puerto Rico Aqueduct and Sewerage Authority, Revenue Bonds, Senior Lien Series 2012A:      
1,730 5.500%, 7/01/28 7/22 at 100.00 CCC 1,756,331
6,390 5.750%, 7/01/37 7/22 at 100.00 CCC 6,492,560
5,235 6.000%, 7/01/47 7/22 at 100.00 CCC 5,323,105
3,000 Sacramento County Sanitation Districts Financing Authority, California, Revenue Bonds, 6/24 at 100.00 AA 3,230,610
  Sacramento Regional County Sanitation District, Series 2014A, 5.000%, 12/01/33      
26,570 Sacramento County Sanitation Districts Financing Authority, California, Revenue Bonds, 12/30 at 100.00 AA 32,526,197
  Sacramento Regional County Sanitation District, Series 2020A, 5.000%, 12/01/50      
2,500 Sacramento Municipal Utility District, California, Electric Revenue Bonds, Tender Option 8/23 at 100.00 AA 3,023,725
  Bond Trust 2016-XG0060, 17.869%, 8/15/41, 144A (IF) (9)      
4,000 San Diego Public Facilities Financing Authority, California, Water Utility Revenue 8/26 at 100.00 Aa3 4,571,200
  Bonds, Refunding Subordinate Lien Series 2016B, 5.000%, 8/01/37      

 

39

 

 

 

   
NAC Nuveen California Quality Municipal Income Fund
  Portfolio of Investments (continued)
  February 28, 2022

 

         
Principal   Optional Call    
Amount (000) Description (1) Provisions (2) Ratings (3) Value
  Utilities (continued)      
$ 2,570 San Francisco City and County Public Utilities Commission, California, Wastewater 4/28 at 100.00 AA $ 3,031,623
  Revenue Bonds, Series 2018B, 5.000%, 10/01/43      
2,145 Santa Clara Valley Water District, California, Water System Revenue Bonds, Refunding 6/30 at 100.00 Aa1 2,613,060
  Series 2020A, 5.000%, 6/01/45      
1,095 Silicon Valley Clean Water, Mateo County, California, Wastewater Revenue Bonds, Series 2/28 at 100.00 AA 1,214,552
  2018, 4.000%, 8/01/46      
  Southern California Public Power Authority, California, Revenue Bonds, Apex Power      
  Project Series 2014A:      
1,565 5.000%, 7/01/35 7/24 at 100.00 AA– 1,692,751
1,500 5.000%, 7/01/38 7/24 at 100.00 AA– 1,621,365
4,000 Southern California Public Power Authority, Natural Gas Project 1 Revenue Bonds, Series No Opt. Call A2 5,039,200
  2007A, 5.000%, 11/01/33      
500,910 Total Utilities     565,057,040
  Water and Sewer – 0.1% (0.1% of Total Investments)      
2,500 Central Basin Municipal Water District, California, Certificates of Participation, 6/21 at 100.00 AA 2,529,800
  Tender Option Bond Trust 2016-XG0038, 17.550%, 8/01/39 –      
  AGC Insured, 144A (IF) (9)      
$ 3,238,953 Total Long-Term Investments (cost $3,184,117,563)     3,421,700,272
  MuniFund Preferred Shares, net of deferred offering costs – (14.7)% (10)     (319,829,781)
  Variable Rate Demand Preferred Shares, net of deferred offering costs – (43.8)% (11)     (954,400,258)
  Other Assets Less Liabilities – 1.6%     33,603,650
  Net Asset Applicable to Common Shares – 100%   $ 2,181,073,883

 

(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. Optional Call Provisions are not covered by the report of independent registered public accounting firm.
(3)For financial reporting purposes, the ratings disclosed are the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investors Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. This treatment of split-rated securities may differ from that used for other purposes, such as for Fund investment policies. 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. Ratings are not covered by the report of independent registered public accounting firm.
(4)Effective February 12, 2019, the par value of the original bonds was replaced with taxable and tax exempt Puerto Rico Sales Tax Financing Corporation (commonly known as COFINA) bond units that are collateralized by a bundle of zero and coupon paying bonds. The quantity shown represents units in a trust, which were assigned according to the original bond’s accreted value. These securities do not have a stated coupon interest rate and income will be recognized through accretion of the discount associated with the trust units. The factor at which these units accrete can also decrease, primarily for principal payments generated from coupon payments received or dispositions of the underlying bond collateral. The quantity of units will not change as a result of these principal payments.
(5)Investment valued at fair value using methods determined in good faith by, or at the discretion of, the Board. For fair value measurement disclosure purposes, investment classified as Level 3.
(6)Defaulted security. A security whose issuer has failed to fully pay principal and/or interest when due, or is under the protection of bankruptcy.
(7)Step-up coupon bond, a bond with a coupon that increases (“steps up”), usually at regular intervals, while the bond is outstanding. The rate shown is the coupon as of the end of the reporting period.
(8)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.
(9)Investment, or portion of investment, has been pledged to collateralize the net payment obligations for investments in inverse floating rate transactions.
(10)MuniFund Preferred Shares, net of deferred offering costs as a percentage of Total Investments is 9.3%.
(11)Variable Rate Demand Preferred Shares, net of deferred offering costs as a percentage of Total Investments is 27.9%.
144AInvestment is exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These investments may only be resold in transactions exempt from registration, which are normally those transactions with qualified institutional buyers.
AMTAlternative Minimum Tax
ETMEscrowed to maturity
IFInverse floating rate security issued by a tender option bond (“TOB”) trust, the interest rate on which varies inversely with the Securities Industry Financial Markets Association (SIFMA) short-term rate, which resets weekly, or a similar short-term rate, and is reduced by the expenses related to the TOB trust.

See accompanying notes to financial statements

40

 

 

NKX Nuveen California AMT-Free Quality
  Municipal Income Fund
  Portfolio of Investments
  February 28, 2022

 

         
Principal   Optional Call    
Amount (000) Description (1) Provisions (2) Ratings (3) Value
  LONG-TERM INVESTMENTS – 159.7% (100.0% of Total Investments)      
  MUNICIPAL BONDS – 159.7% (100.0% of Total Investments)      
  Consumer Staples – 0.0% (0.0% of Total Investments)      
$ 235 California County Tobacco Securitization Agency, Tobacco Settlement Asset-Backed Bonds, 6/30 at 100.00 BBB+ $ 254,728
  Los Angeles County Securitization Corporation, Series 2020A, 4.000%, 6/01/49      
  Education and Civic Organizations – 3.3% (2.0% of Total Investments)      
1,780 California Municipal Finance Authority, Charter School Revenue Bonds, Rocketship 6/22 at 102.00 N/R 1,836,230
  Education Multiple Projects, Series 2014A, 7.250%, 6/01/43      
1,560 California Municipal Finance Authority, Revenue Bonds, Goodwill Industries of Sacramento 3/22 at 100.00 N/R 1,561,186
  Valley & Northern Nevada Project, Series 2012A, 6.875%, 1/01/42, 144A      
635 California School Finance Authority, School Facility Revenue Bonds, Alliance for 7/25 at 100.00 BBB 688,930
  College-Ready Public Schools Project, Series 2015A, 5.000%, 7/01/45, 144A      
750 California School Finance Authority, School Facility Revenue Bonds, Alliance for 7/25 at 100.00 BBB 812,760
  College-Ready Public Schools Project, Series 2016A, 5.000%, 7/01/46, 144A      
4,925 California School Finance Authority, School Facility Revenue Bonds, Alliance for 7/25 at 101.00 BBB 5,382,631
  College-Ready Public Schools Project, Series 2016C, 5.000%, 7/01/46      
280 California School Finance Authority, School Facility Revenue Bonds, Value Schools, 7/26 at 100.00 BB+ 316,504
  Series 2016A, 5.750%, 7/01/41, 144A      
1,725 California State University, Systemwide Revenue Bonds, Series 2016A, 4.000%, 11/01/38 5/26 at 100.00 Aa2 1,877,335
10,000 University of California, General Revenue Bonds, Series 2018AZ, 5.000%, 5/15/48 5/28 at 100.00 AA 11,868,600
21,655 Total Education and Civic Organizations     24,344,176
  Health Care – 12.2% (7.6% of Total Investments)      
  California Health Facilities Financing Authority, California, Revenue Bonds, Sutter      
  Health, Refunding Series 2016B:      
13,295 4.000%, 11/15/41 11/26 at 100.00 A1 14,457,648
2,960 5.000%, 11/15/46 11/26 at 100.00 A1 3,375,170
9,415 California Health Facilities Financing Authority, California, Revenue Bonds, Sutter 11/27 at 100.00 A1 10,960,755
  Health, Refunding Series 2017A, 5.000%, 11/15/48      
3,500 California Health Facilities Financing Authority, California, Revenue Bonds, Sutter 11/27 at 100.00 A1 4,074,630
  Health, Series 2018A, 5.000%, 11/15/48      
1,255 California Health Facilities Financing Authority, Revenue Bonds, Children’s Hospital Los 11/22 at 100.00 BBB+ 1,285,622
  Angeles, Series 2012A, 5.000%, 11/15/29      
1,000 California Health Facilities Financing Authority, Revenue Bonds, Children’s Hospital Los 8/27 at 100.00 BBB+ 1,145,990
  Angeles, Series 2017A, 5.000%, 8/15/47      
1,000 California Health Facilities Financing Authority, Revenue Bonds, City of Hope National 11/22 at 100.00 A+ 1,028,520
  Medical Center, Series 2012A, 5.000%, 11/15/35      
6,500 California Health Facilities Financing Authority, Revenue Bonds, CommonSpirit Health, 4/30 at 100.00 BBB+ 7,111,780
  Series 2020A, 4.000%, 4/01/44      
10,000 California Health Facilities Financing Authority, Revenue Bonds, Kaiser Permanente 11/27 at 100.00 AA– 11,020,300
  System, Series 2017A-2, 4.000%, 11/01/44      
2,520 California Health Facilities Financing Authority, Revenue Bonds, Lucile Salter Packard 8/24 at 100.00 AA– 2,728,555
  Children’s Hospital, Series 2014A, 5.000%, 8/15/43      
2,000 California Health Facilities Financing Authority, Revenue Bonds, Memorial Health 10/22 at 100.00 AA– 2,047,800
  Services, Series 2012A, 5.000%, 10/01/33      
795 California Health Facilities Financing Authority, Revenue Bonds, Providence Health & 10/24 at 100.00 AA– 862,837
  Services, Refunding Series 2014A, 5.000%, 10/01/38      
2,800 California Health Facilities Financing Authority, Revenue Bonds, Providence Health & 10/24 at 100.00 AA– 3,035,200
  Services, Series 2014B, 5.000%, 10/01/44      

 

41

 

 

 

   
NKX Nuveen California AMT-Free Quality
  Municipal Income Fund
  Portfolio of Investments (continued)
  February 28, 2022

 

Principal   Optional Call    
Amount (000) Description (1) Provisions (2) Ratings (3) Value
  Health Care (continued)      
$ 250 California Municipal Finance Authority, Revenue Bonds, Eisenhower Medical Center, 7/27 at 100.00 Baa2 $ 286,105
  Refunding Series 2017A, 5.000%, 7/01/42      
1,690 California Municipal Finance Authority, Revenue Bonds, NorthBay Healthcare Group, Series 11/26 at 100.00 BBB– 1,920,279
  2017A, 5.250%, 11/01/36      
  California Statewide Communities Development Authority, California, Revenue Bonds, Loma      
  Linda University Medical Center, Series 2014A:      
1,200 5.250%, 12/01/44 12/24 at 100.00 BB 1,308,900
4,000 5.500%, 12/01/54 12/24 at 100.00 BB 4,378,840
14,740 California Statewide Communities Development Authority, California, Revenue Bonds, Loma 6/26 at 100.00 BB 16,570,855
  Linda University Medical Center, Series 2016A, 5.250%, 12/01/56, 144A      
2,000 California Statewide Communities Development Authority, California, Revenue Bonds, Loma 6/28 at 100.00 BB 2,319,720
  Linda University Medical Center, Series 2018A, 5.250%, 12/01/48, 144A      
  California Statewide Community Development Authority, Revenue Bonds, Daughters of      
  Charity Health System, Series 2005A:      
62 5.750%, 7/01/24 (4),(5) 1/22 at 100.00 N/R 54,210
373 5.750%, 7/01/30 (4),(5) 1/22 at 100.00 N/R 328,356
9 5.750%, 7/01/35 (4),(5) 1/22 at 100.00 N/R 8,131
81,364 Total Health Care     90,310,203
  Housing/Multifamily – 16.2% (10.1% of Total Investments)      
7,680 California Community Housing Agency, California, Essential Housing Revenue Bonds, 8/31 at 100.00 N/R 7,411,430
  Creekwood, Series 2021A, 4.000%, 2/01/56, 144A      
5,750 California Community Housing Agency, California, Essential Housing Revenue Bonds, 8/31 at 100.00 N/R 5,358,310
  Glendale Properties, Junior Series 2021A-2, 4.000%, 8/01/47, 144A      
3,000 California Community Housing Agency, California, Essential Housing Revenue Bonds, 2/30 at 100.00 N/R 3,070,710
  Serenity at Larkspur Apartments, Series 2020A, 5.000%, 2/01/50, 144A      
970 California Community Housing Agency, California, Essential Housing Revenue Bonds, 2/31 at 100.00 N/R 926,612
  Stoneridge Apartments, Series 2021A, 4.000%, 2/01/56, 144A      
3,185 California Community Housing Agency, California, Essential Housing Revenue Bonds, Summit 8/32 at 100.00 N/R 2,640,747
  at Sausalito Apartments, Series 2021A-1, 3.000%, 2/01/57, 144A      
230 California Community Housing Agency, California, Essential Housing Revenue Bonds, Summit 8/32 at 100.00 N/R 203,470
  at Sausalito Apartments, Series 2021A-2, 4.000%, 2/01/50, 144A      
500 California Community Housing Agency, California, Essential Housing Revenue Bonds, 8/29 at 100.00 N/R 519,745
  Verdant at Green Valley Apartments, Series 2019A, 5.000%, 8/01/49, 144A      
4,750 California Community Housing Agency, Workforce Housing Revenue Bonds, Annadel 4/29 at 100.00 N/R 4,901,145
  Apartments, Series 2019A, 5.000%, 4/01/49, 144A      
7,871 California Housing Finance Agency, Municipal Certificate Revenue Bonds, Class A Series No Opt. Call BBB+ 8,678,022
  2019-2, 4.000%, 3/20/33      
6,488 California Housing Finance Agency, Municipal Certificate Revenue Bonds, Class A Series No Opt. Call BBB+ 6,936,727
  2021-1, 3.500%, 11/20/35      
1,170 California Housing Finance Agency, Municipal Certificate Revenue Bonds, Class A No Opt. Call BBB+ 1,322,918
  Series 2019-1, 4.250%, 1/15/35      
  California Municipal Finance Authority, Mobile Home Park Revenue Bonds, Caritas      
  Affordable Housing Inc Projects, Senior Series 2014A:      
260 5.250%, 8/15/39 8/24 at 100.00 A– 275,824
705 5.250%, 8/15/49 8/24 at 100.00 A– 744,931
140 California Public Finance Authority, University Housing Revenue Bonds, National Campus 7/27 at 100.00 Caa2 119,942
  Community Development – Claremont Properties LLC Claremont Colleges Project, Series 2017A,      
  5.000%, 7/01/37, 144A      
8,205 CMFA Special Finance Agency I, California, Essential Housing Revenue Bonds, The Mix at 4/31 at 100.00 N/R 8,189,410
  Center City, Series 2021A-2, 4.000%, 4/01/56, 144A      

 

42

 

 

 

         
Principal   Optional Call    
Amount (000) Description (1) Provisions (2) Ratings (3) Value
  Housing/Multifamily (continued)      
$ 2,740 CMFA Special Finance Agency, California, Essential Housing Revenue Bonds, Enclave 2/32 at 100.00 N/R $ 2,589,355
  Apartments, Senior Series 2022A-1, 4.000%, 8/01/58, 144A      
1,435 CMFA Special Finance Agency, California, Essential Housing Revenue Bonds, Latitude 33, 12/31 at 100.00 N/R 1,166,784
  Senior Series 2021A-1, 3.000%, 12/01/56, 144A      
440 CSCDA Community Improvement Authority, California, Essential Housing Revenue Bonds, 777 5/32 at 100.00 N/R 421,670
  Place-Pomona, Senior Lien Series 2021A-1, 3.600%, 5/01/47, 144A      
3,980 CSCDA Community Improvement Authority, California, Essential Housing Revenue Bonds, 777 5/32 at 100.00 N/R 3,432,432
  Place-Pomona, Senior Lien Series 2021A-2, 3.250%, 5/01/57, 144A      
595 CSCDA Community Improvement Authority, California, Essential Housing Revenue Bonds, 10/31 at 100.00 N/R 543,562
  Acacia on Santa Rosa Creek, Mezzanine Lien Series 2021B, 4.000%, 10/01/46, 144A      
1,145 CSCDA Community Improvement Authority, California, Essential Housing Revenue Bonds, 10/31 at 100.00 N/R 1,156,782
  Acacia on Santa Rosa Creek, Senior Lien Series 2021A, 4.000%, 10/01/56, 144A      
7,065 CSCDA Community Improvement Authority, California, Essential Housing Revenue Bonds, 10/31 at 100.00 N/R 6,858,490
  Altana Glendale, Series 2021A-2, 4.000%, 10/01/56, 144A      
8,125 CSCDA Community Improvement Authority, California, Essential Housing Revenue Bonds, 1/31 at 100.00 N/R 8,569,275
  Center City Anaheim, Series 2020A, 5.000%, 1/01/54, 144A      
  CSCDA Community Improvement Authority, California, Essential Housing Revenue Bonds,      
  Millennium South Bay-Hawthorne, Series 2021A-1 and A-2:      
2,150 3.375%, 7/01/43, 144A 7/32 at 100.00 N/R 2,068,988
2,745 3.250%, 7/01/56, 144A 7/32 at 100.00 N/R 2,402,149
6,820 CSCDA Community Improvement Authority, California, Essential Housing Revenue Bonds, Moda 10/31 at 100.00 N/R 6,852,190
  at Monrovia Station, Social Series 2021A-2, 4.000%, 10/01/56, 144A      
  CSCDA Community Improvement Authority, California, Essential Housing Revenue Bonds,      
  Monterrey Station Apartments, Senior Lien Series 2021A-1:      
770 3.000%, 7/01/43, 144A 7/32 at 100.00 N/R 686,740
3,340 3.125%, 7/01/56, 144A 7/32 at 100.00 N/R 2,829,982
1,085 CSCDA Community Improvement Authority, California, Essential Housing Revenue Bonds, 9/31 at 100.00 N/R 1,090,110
  Oceanaire-Long Beach, Social Series 2021A-2, 4.000%, 9/01/56, 144A      
155 CSCDA Community Improvement Authority, California, Essential Housing Revenue Bonds, 3/32 at 100.00 N/R 132,759
  Orange City Portfolio, Mezzanine Lien Series 2021B, 4.000%, 3/01/57, 144A      
4,735 CSCDA Community Improvement Authority, California, Essential Housing Revenue Bonds, 3/32 at 100.00 N/R 3,917,171
  Orange City Portfolio, Senior Lien Series 2021A-2, 3.000%, 3/01/57, 144A      
3,020 CSCDA Community Improvement Authority, California, Essential Housing Revenue Bonds, 8/31 at 100.00 N/R 2,889,808
  Parallel-Anaheim Series 2021A, 4.000%, 8/01/56, 144A      
1,935 CSCDA Community Improvement Authority, California, Essential Housing Revenue Bonds, 12/31 at 100.00 N/R 1,712,359
  Pasadena Portfolio Social Bond, Mezzanine Senior Series 2021B, 4.000%, 12/01/56, 144A      
200 CSCDA Community Improvement Authority, California, Essential Housing Revenue Bonds, 7/31 at 100.00 N/R 211,440
  Renaissance at City Center, Series 2020A, 5.000%, 7/01/51, 144A      
2,720 CSCDA Community Improvement Authority, California, Essential Housing Revenue Bonds, 7/31 at 100.00 N/R 2,732,512
  Union South Bay, Series 2021A-2, 4.000%, 7/01/56, 144A      
780 CSCDA Community Improvement Authority, California, Essential Housing Revenue Bonds, 9/31 at 100.00 N/R 651,370
  Waterscape Apartments, Senior Lien Series 2021A, 3.000%, 9/01/56, 144A      
1,975 CSCDA Community Improvement Authority, California, Essential Housing Revenue Bonds, 6/31 at 100.00 N/R 1,770,370
  Westgate Phase 1-Pasadena Apartments, Senior Lien Series 2021A-1, 3.000%, 6/01/47, 144A      
7,200 CSCDA Community Improvement Authority, California, Essential Housing Revenue Bonds, 6/31 at 100.00 N/R 6,038,568
  Westgate Phase 1-Pasadena Apartments, Senior Lien Series 2021A-2, 3.125%, 6/01/57, 144A      
4,970 CSCDA Community Improvement Authority, California, Essential Housing Revenue Bonds, Wood 6/32 at 100.00 N/R 4,026,048
  Creek Apartments, Senior Lien Series 2021A-1, 3.000%, 12/01/49      
3,285 Independent Cities Finance Authority, California, Mobile Home Park Revenue Bonds, 4/23 at 100.00 A– 3,360,194
  Rancho Vallecitos Mobile Home Park, Series 2013, 5.000%, 4/15/38      

 

43

 

 

 

   
NKX Nuveen California AMT-Free Quality
  Municipal Income Fund
  Portfolio of Investments (continued)
  February 28, 2022

 

Principal   Optional Call    
Amount (000) Description (1) Provisions (2) Ratings (3) Value
  Housing/Multifamily (continued)      
  La Verne, California, Mobile Home Park Revenue Bonds, Copacabana Mobile Home Park,      
  Refunding Series 2014:      
$ 670 5.000%, 6/15/44 6/24 at 100.00 A+ $ 716,364
185 5.000%, 6/15/49 6/24 at 100.00 A+ 197,203
125,169 Total Housing/Multifamily     120,324,618
  Long-Term Care – 0.4% (0.3% of Total Investments)      
1,755 California Health Facilities Financing Authority, Insured Revenue Bonds, Community 3/22 at 100.00 AA 1,762,073
  Program for Persons with Developmental Disabilities, Series 2011A, 6.250%, 2/01/26      
1,300 California Health Facilities Financing Authority, Revenue Bonds, Northern California 7/25 at 100.00 AA 1,442,805
  Presbyterian Homes & Services Inc., Refunding Series 2015, 5.000%, 7/01/39      
3,055 Total Long-Term Care     3,204,878
  Tax Obligation/General – 34.2% (21.4% of Total Investments)      
1,600 California State, General Obligation Bonds, Refunding Various Purpose Series 2016, 8/26 at 100.00 Aa2 1,836,576
  5.000%, 8/01/33      
  California State, General Obligation Bonds, Refunding Various Purpose Series 2019:      
3,250 5.000%, 4/01/32 No Opt. Call Aa2 4,209,432
15,000 5.000%, 11/01/39 11/28 at 100.00 Aa2 18,012,450
  California State, General Obligation Bonds, Various Purpose Series 2013:      
3,500 5.000%, 4/01/37 4/23 at 100.00 Aa2 3,649,310
2,000 5.000%, 2/01/43 2/23 at 100.00 Aa2 2,071,720
5,520 5.000%, 11/01/43 11/23 at 100.00 Aa2 5,858,045
  California State, General Obligation Bonds, Various Purpose Series 2014:      
2,460 5.000%, 10/01/39 10/24 at 100.00 Aa2 2,671,216
9,000 5.000%, 12/01/43 12/23 at 100.00 Aa2 9,574,560
9,000 5.000%, 10/01/44 10/24 at 100.00 Aa2 9,758,430
8,000 California State, General Obligation Bonds, Various Purpose Series 2015, 5.000%, 3/01/45 3/25 at 100.00 Aa2 8,790,000
5,390 California State, General Obligation Bonds, Various Purpose Series 2016, 5.000%, 9/01/46 9/26 at 100.00 Aa2 6,139,911
7,995 California State, General Obligation Bonds, Various Purpose Series 2017, 5.000%, 11/01/47 11/27 at 100.00 Aa2 9,347,514
1,505 Chaffey Joint Union High School District, San Bernardino County, California, General 8/28 at 100.00 Aa1 1,686,067
  Obligation Bonds, Election 2012 Series 2019D, 4.000%, 8/01/49      
20,750 Coachella Valley Unified School District, Riverside County, California, General No Opt. Call AA 10,598,062
  Obligation Bonds, Election 2005 Series 2010C, 0.000%, 8/01/43 – AGM Insured      
9,840 Corona-Norco Unified School District, Riverside County, California, General Obligation 8/28 at 100.00 AAA 11,629,207
  Bonds, Election 2014, Series 2018B, 5.000%, 8/01/47      
3,065 Lucia Mar Unified School District, San Luis Obispo County, California, General 8/27 at 100.00 Aa2 3,354,857
  Obligation Bonds, Election 2016 Series 2017A, 4.000%, 8/01/46      
4,500 Mount Diablo Unified School District, Contra Costa County, California, General 8/25 at 100.00 AA 4,988,205
  Obligation Bonds, Series 2010A, 0.000%, 8/01/30 – AGM Insured (6)      
3,300 Mount San Jacinto Community College District, Riverside County, California, General 8/28 at 100.00 Aa1 3,701,379
  Obligation Bonds, Election 2014, Series 2018B, 4.000%, 8/01/43      
11,980 San Diego Unified School District, San Diego County, California, General Obligation No Opt. Call Aa2 9,691,820
  Bonds, Refunding Series 2012R-1, 0.000%, 7/01/31      
9,665 San Jose, California, General Obligation Bonds, Disaster Preparedness, Public Safety & 3/29 at 100.00 AAA 11,658,986
  Infrastructure, Series 2019A-1, 5.000%, 9/01/45      
2,000 San Mateo County Community College District, California, General Obligation Bonds, 9/28 at 100.00 AAA 2,420,260
  Election 2014 Series 2018B, 5.000%, 9/01/45      
2,670 San Mateo Union High School District, San Mateo County, California, General Obligation No Opt. Call Aaa 2,627,414
  Bonds, Capital Appreciation, Election 2010, Refunding Series 2011A, 0.000%, 9/01/33 (6)      
  Sonoma County Junior College District, California, General Obligation Bonds, Election      
  2014 Series 2019B:      
1,730 3.000%, 8/01/36 8/29 at 100.00 AA 1,829,267
2,110 3.000%, 8/01/41 8/29 at 100.00 AA 2,157,644

 

44

 

 

 

         
Principal   Optional Call    
Amount (000) Description (1) Provisions (2) Ratings (3) Value
  Tax Obligation/General (continued)      
$ 10,000 Southwestern Community College District, San Diego County, California, General No Opt. Call Aa2 $ 5,879,000
  Obligation Bonds, Election of 2008, Series 2011C, 0.000%, 8/01/41      
  Stockton Unified School District, San Joaquin County, California, General Obligation      
  Bonds, Election 2008 Series 2011D:      
23,280 0.000%, 8/01/47 – AGC Insured (6) 8/37 at 100.00 AA 28,311,972
38,845 0.000%, 8/01/50 – AGM Insured (6) 8/37 at 100.00 AA 47,326,417
15,780 Sylvan Union School District, Stanislaus County, California, General Obligation Bonds, No Opt. Call AA 16,467,535
  Election of 2006, Series 2010, 0.000%, 8/01/49 – AGM Insured (6)      
8,345 Yosemite Community College District, California, General Obligation Bonds, Capital No Opt. Call Aa2 8,041,826
  Appreciation, Election 2004, Series 2010D, 0.000%, 8/01/42 (6)      
242,080 Total Tax Obligation/General     254,289,082
  Tax Obligation/Limited – 27.0% (16.9% of Total Investments)      
1,000 Bell Community Redevelopment Agency, California, Tax Allocation Bonds, Bell Project 3/22 at 100.00 AA 1,019,940
  Area, Series 2003, 5.625%, 10/01/33 – RAAI Insured      
5,720 Brea and Olinda Unified School District, Orange County, California, Certificates of 3/22 at 100.00 AA 5,738,476
  Participation Refunding, Series 2002A, 5.125%, 8/01/26 – AGM Insured      
  California Infrastructure and Economic Development Bank, Revenue Bonds, North County      
  Center for Self-Sufficiency Corporation, Series 2004:      
1,695 5.000%, 12/01/22 – AMBAC Insured 3/22 at 100.00 AA+ 1,700,797
1,780 5.000%, 12/01/23 – AMBAC Insured 3/22 at 100.00 AA+ 1,785,963
1,865 5.000%, 12/01/24 – AMBAC Insured 3/22 at 100.00 AA+ 1,871,845
7,000 California State Public Works Board, Lease Revenue Bonds, Department of Corrections & 9/23 at 100.00 Aa3 7,436,730
  Rehabilitation, Various Correctional Facilities Series 2013F, 5.250%, 9/01/31      
  California State Public Works Board, Lease Revenue Bonds, Department of Education,      
  Riverside Campus Project, Series 2012H:      
2,790 5.000%, 4/01/30 4/22 at 100.00 Aa3 2,799,486
2,065 5.000%, 4/01/31 4/22 at 100.00 Aa3 2,072,021
20,330 California State Public Works Board, Lease Revenue Bonds, Judicial Council of 10/24 at 100.00 Aa3 22,070,045
  California, New Stockton Courthouse, Series 2014B, 5.000%, 10/01/39      
1,990 California State Public Works Board, Lease Revenue Bonds, Judicial Council of 3/23 at 100.00 Aa3 2,064,227
  California, Various Projects Series 2013A, 5.000%, 3/01/33      
9,200 California State Public Works Board, Lease Revenue Bonds, Various Capital Projects, 5/31 at 100.00 Aa3 10,306,852
  Series 2021B, 4.000%, 5/01/46      
  Compton Community Redevelopment Agency, California, Tax Allocation Revenue Bonds,      
  Redevelopment Projects, Second Lien Series 2010B:      
1,230 5.000%, 8/01/25 3/22 at 100.00 N/R 1,233,198
530 5.750%, 8/01/26 3/22 at 100.00 N/R 531,659
4,720 El Monte, California, Senior Lien Certificates of Participation, Department of Public 3/22 at 100.00 Aa2 4,738,266
  Services Facility Phase II, Series 2001, 5.250%, 1/01/34 – AMBAC Insured      
  Government of Guam, Business Privilege Tax Bonds, Refunding Series 2015D:      
7,610 5.000%, 11/15/30 11/25 at 100.00 BB 8,426,781
4,000 5.000%, 11/15/34 11/25 at 100.00 BB 4,416,440
535 Inglewood Redevelopment Agency, California, Tax Allocation Bonds, Merged Redevelopment No Opt. Call N/R 555,940
  Project, Refunding Series 1998A, 5.250%, 5/01/23 – AMBAC Insured      
1,110 Lake Elsinore Public Financing Authority, California, Local Agency Revenue Bonds, 9/25 at 100.00 N/R 1,205,404
  Refunding Series 2015, 5.000%, 9/01/40      
2,000 Lammersville Joint Unified School District, California, Special Tax Bonds, Community 9/23 at 100.00 N/R 2,104,240
  Facilities District 2007-1 Mountain House – Shea Homes Improvement Area 1, Series 2013,      
  6.000%, 9/01/38      
1,000 Lathrop, California, Limited Obligation Improvement Bonds, Crossroads Assessment 9/25 at 100.00 N/R 1,089,170
  District, Series 2015, 5.000%, 9/02/40      
6,190 Los Angeles Community Redevelopment Agency, California, Lease Revenue Bonds, Vermont 3/22 at 100.00 Aa2 6,206,775
  Manchester Social Services Project, Series 2005, 5.000%, 9/01/37 – AMBAC Insured      

 

45

 

 

 

NKX Nuveen California AMT-Free Quality
  Municipal Income Fund
  Portfolio of Investments (continued)
  February 28, 2022

 

Principal   Optional Call    
Amount (000) Description (1) Provisions (2) Ratings (3) Value
  Tax Obligation/Limited (continued)      
  Los Angeles County Metropolitan Transportation Authority, California, Proposition A      
  First Tier Senior Sales Tax Revenue Bonds, Green Series 2017A:      
$ 7,860 5.000%, 7/01/39 7/27 at 100.00 AAA $ 9,200,995
7,140 5.000%, 7/01/41 7/27 at 100.00 AAA 8,334,308
3,220 Los Angeles County Metropolitan Transportation Authority, California, Proposition C 7/27 at 100.00 AAA 3,755,035
  Sales Tax Revenue Bonds, Senior Lien Series 2017A, 5.000%, 7/01/42      
3,855 Los Angeles County Public Works Financing Authority, California, Lease Revenue Bonds, 12/29 at 100.00 AA+ 4,698,937
  Series 2019E-1, 5.000%, 12/01/49      
475 Lynwood Redevelopment Agency, California, Tax Allocation Revenue Bonds, Project Area A, 3/22 at 100.00 A 477,142
  Subordinate Lien Series 2011A, 7.250%, 9/01/38      
  Patterson Public Finance Authority, California, Revenue Bonds, Community Facilities      
  District 2001-1, Senior Series 2013A:      
3,725 5.250%, 9/01/30 9/23 at 100.00 N/R 3,898,324
3,330 5.750%, 9/01/39 9/23 at 100.00 N/R 3,497,665
515 Patterson Public Finance Authority, California, Revenue Bonds, Community Facilities 9/23 at 100.00 N/R 541,873
  District 2001-1, Subordinate Lien Series 2013B, 5.875%, 9/01/39      
1,940 Perris Joint Powers Authority, California, Local Agency Revenue Bonds, Community 9/23 at 100.00 N/R 2,030,617
  Facilities District 2001-1 May Farms Improvement Area 1,2 and 3, Refunding Series 2014A,      
  5.375%, 9/01/33      
  Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, Restructured 2018A-1:      
24,200 0.000%, 7/01/46 7/28 at 41.38 N/R 7,861,612
14,429 5.000%, 7/01/58 7/28 at 100.00 N/R 16,181,402
12 Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, Taxable 7/28 at 100.00 N/R 13,124
  Restructured Cofina Project Series 2019A-2, 4.536%, 7/01/53      
  Riverside County, California, Special Tax Bonds, Community Facilities District 05-8      
  Scott Road, Series 2013:      
660 5.000%, 9/01/32 9/22 at 100.00 N/R 669,570
1,775 5.000%, 9/01/42 9/22 at 100.00 N/R 1,799,797
400 Roseville, California, Special Tax Bonds, Community Facilities District 1 Westpark, 9/25 at 100.00 N/R 437,692
  Refunding Series 2015, 5.000%, 9/01/33      
  Sacramento Area Flood Control Agency, California, Consolidated Capital Assessment      
  District 2 Bonds, Series 2016A:      
3,695 5.000%, 10/01/36 10/26 at 100.00 AA 4,219,099
8,290 5.000%, 10/01/41 10/26 at 100.00 AA 9,426,725
6,230 5.000%, 10/01/47 10/26 at 100.00 AA 7,037,470
210 San Clemente, California, Special Tax Revenue Bonds, Community Facilities District 9/25 at 100.00 N/R 228,637
  2006-1 Marblehead Coastal, Series 2015, 5.000%, 9/01/40      
1,480 San Diego Redevelopment Agency, California, Subordinate Lien Tax Increment and Parking 3/22 at 100.00 AAA 1,485,728
  Revenue Bonds, Centre City Project, Series 2003B, 5.250%, 9/01/26      
3,000 San Francisco Bay Area Rapid Transit District, California, Sales Tax Revenue Bonds, 7/27 at 100.00 AA+ 3,053,940
  Series 2019A, 3.000%, 7/01/44      
380 San Francisco City and County Redevelopment Agency Successor Agency, California, Special 8/22 at 100.00 N/R 384,419
  Tax Bonds, Community Facilities District 6 Mission Bay South Public Improvements, Refunding      
  Series 2013A, 5.000%, 8/01/33      
620 San Francisco City and County Redevelopment Agency Successor Agency, California, Special 8/24 at 100.00 N/R 651,918
  Tax Bonds, Community Facilities District 7, Hunters Point Shipyard Phase One Improvements,      
  Refunding Series 2014, 5.000%, 8/01/39      
2,700 San Francisco City and County Redevelopment Financing Authority, California, Tax No Opt. Call AA 2,604,096
  Allocation Revenue Bonds, San Francisco Redevelopment Projects, Series 1998D, 0.000%,      
  8/01/24 – NPFG Insured      
50 Signal Hill Redevelopment Agency, California, Project 1 Tax Allocation Bonds, Series 3/22 at 100.00 N/R 50,202
  2011, 7.000%, 10/01/26      
3,600 Stockton Public Financing Authority, California, Revenue Bonds, Arch Road East Community 9/25 at 103.00 N/R 3,999,060
  Facility District 99-02, Series 2018A, 5.000%, 9/01/33      

 

46

 

 

 

Principal   Optional Call    
Amount (000) Description (1) Provisions (2) Ratings (3) Value
  Tax Obligation/Limited (continued)      
  Temecula Public Financing Authority, California, Special Tax Bonds, Community Facilities      
  District 16-01, Series 2017:      
$ 2,170 6.125%, 9/01/37, 144A 9/27 at 100.00 N/R $ 2,392,447
1,000 6.250%, 9/01/47, 144A 9/27 at 100.00 N/R 1,095,690
635 Transbay Joint Powers Authority, California, Tax Allocation Bonds, Senior Green Series 4/30 at 100.00 A– 764,718
  2020A, 5.000%, 10/01/45      
4,500 Virgin Islands Public Finance Authority, Gross Receipts Taxes Loan Note, Refunding 10/22 at 100.00 AA 4,579,425
  Series 2012A, 5.000%, 10/01/32 – AGM Insured      
  West Patterson Financing Authority, California, Special Tax Bonds, Community Facilities      
  District 2015-1 Arambel-KDN, Refunding Series 2015:      
350 5.250%, 9/01/35 9/25 at 100.00 N/R 381,118
790 5.250%, 9/01/45 9/25 at 100.00 N/R 853,674
4,090 West Sacramento Financing Authority, California, Special Tax Revenue Bonds, Series 2014, 9/22 at 102.00 N/R 4,237,894
  5.500%, 9/01/31      
201,686 Total Tax Obligation/Limited     200,218,608
  Transportation – 10.0% (6.3% of Total Investments)      
9,005 Alameda Corridor Transportation Authority, California, Revenue Bonds, Refunding Second 10/26 at 100.00 BBB+ 10,118,288
  Subordinate Lien Series 2016B, 5.000%, 10/01/36      
  Los Angeles Department of Airports, California, Revenue Bonds, Los Angeles International      
  Airport, Senior Lien Series 2015E:      
150 5.000%, 5/15/31 5/25 at 100.00 Aa2 166,425
1,270 5.000%, 5/15/34 5/25 at 100.00 Aa2 1,406,957
1,345 5.000%, 5/15/36 5/25 at 100.00 Aa2 1,489,601
4,000 Los Angeles Department of Airports, California, Revenue Bonds, Los Angeles International 5/27 at 100.00 Aa3 4,624,320
  Airport, Subordinate Lien Series 2017B, 5.000%, 5/15/42      
49,185 San Francisco Airports Commission, California, Revenue Bonds, San Francisco 5/27 at 100.00 A1 56,471,758
  International Airport, Governmental Purpose Second Series 2017B, 5.000%, 5/01/47      
64,955 Total Transportation     74,277,349
  U.S. Guaranteed – 28.8% (18.1% of Total Investments) (7)      
1,050 ABAG Finance Authority for Non-Profit Corporations, California, Revenue Bonds, The 7/22 at 100.00 A1 1,065,141
  Jackson Laboratory, Series 2012, 5.000%, 7/01/37 (Pre-refunded 7/01/22)      
1,115 Bay Area Toll Authority, California, Revenue Bonds, San Francisco Bay Area Toll Bridge, 4/23 at 100.00 A1 1,167,282
  Series 2013S-4, 5.250%, 4/01/48 (Pre-refunded 4/01/23)      
7,600 Bay Area Water Supply and Conservation Agency, California, Revenue Bonds, Capital Cost 4/23 at 100.00 AA– 7,931,816
  Recovery Prepayment Program, Series 2013A, 5.000%, 10/01/34 (Pre-refunded 4/01/23)      
655 Beaumont Financing Authority, California, Local Agency Revenue Bonds, Improvement Area 9/23 at 100.00 N/R 692,833
  19C, Series 2013A, 5.000%, 9/01/27 (Pre-refunded 9/01/23)      
3,000 California Educational Facilities Authority, Revenue Bonds, Pepperdine University, 9/25 at 100.00 AA– 3,375,480
  Series 2015, 5.000%, 9/01/40 (Pre-refunded 9/01/25)      
430 California Health Facilities Financing Authority, California, Revenue Bonds, Sutter 8/25 at 100.00 A1 482,460
  Health, Refunding Series 2015A, 5.000%, 8/15/43 (Pre-refunded 8/15/25)      
2,040 California Health Facilities Financing Authority, California, Revenue Bonds, Sutter 11/26 at 100.00 N/R 2,368,277
  Health, Refunding Series 2016B, 5.000%, 11/15/46 (Pre-refunded 11/15/26)      
  California Health Facilities Financing Authority, California, Revenue Bonds, Sutter      
  Health, Series 2016A:      
18,430 5.000%, 11/15/41 (Pre-refunded 11/15/25) 11/25 at 100.00 A1 20,824,794
7,500 5.000%, 11/15/46 (Pre-refunded 11/15/25) 11/25 at 100.00 A1 8,474,550
610 California Health Facilities Financing Authority, Revenue Bonds, Providence Health & 10/24 at 100.00 N/R 667,895
  Services, Refunding Series 2014A, 5.000%, 10/01/38 (Pre-refunded 10/01/24)      
  California Infrastructure and Economic Development Bank, First Lien Revenue Bonds, San      
  Francisco Bay Area Toll Bridge, Series 2003A:      
3,000 5.000%, 7/01/22 – AGM Insured (ETM) 10/21 at 100.00 AA+ 3,043,770
2,250 5.000%, 7/01/36 (Pre-refunded 1/01/28) – AMBAC Insured 1/28 at 100.00 AA+ 2,697,188

 

47

 

 

 

NKX Nuveen California AMT-Free Quality
  Municipal Income Fund
  Portfolio of Investments (continued)
  February 28, 2022

 

Principal   Optional Call    
Amount (000) Description (1) Provisions (2) Ratings (3) Value
  U.S. Guaranteed (7) (continued)      
$ 3,000 California Infrastructure and Economic Development Bank, Infrastructure State Revolving 10/26 at 100.00 AAA $ 3,478,560
  Fund Revenue Bonds, Series 2016A, 5.000%, 10/01/41 (Pre-refunded 10/01/26)      
4,475 California Municipal Finance Authority Charter School Revenue Bonds, Albert Einstein 8/23 at 100.00 BB 4,850,497
  Academies Project, Series 2013A, 7.125%, 8/01/43 (Pre-refunded 8/01/23)      
155 California Municipal Finance Authority, Mobile Home Park Revenue Bonds, Caritas Projects 8/22 at 100.00 A– 158,384
  Series 2012A, 5.500%, 8/15/47 (Pre-refunded 8/15/22)      
350 California Municipal Finance Authority, Mobile Home Park Revenue Bonds, Caritas Projects 8/22 at 100.00 N/R 360,259
  Series 2012B, 7.250%, 8/15/47 (Pre-refunded 8/15/22)      
  California Municipal Finance Authority, Mobile Home Park Revenue Bonds, Windsor Mobile      
  Country Club Series 2013A:      
2,000 5.625%, 11/15/33 (Pre-refunded 11/15/23) 11/23 at 100.00 N/R 2,148,760
8,000 6.000%, 11/15/48 (Pre-refunded 11/15/23) 11/23 at 100.00 N/R 8,642,640
7,875 California Municipal Finance Authority, Revenue Bonds, Pomona College, Series 2017, 1/28 at 100.00 AAA 9,440,156
  5.000%, 1/01/48 (Pre-refunded 1/01/28)      
6,750 Foothill/Eastern Transportation Corridor Agency, California, Toll Road Revenue Bonds, 1/24 at 100.00 BBB+ 7,346,700
  Refunding Junior Lien Series 2013C, 6.500%, 1/15/43 (Pre-refunded 1/15/24)      
  Foothill/Eastern Transportation Corridor Agency, California, Toll Road Revenue Bonds,      
  Refunding Series 2013A:      
14,885 5.750%, 1/15/46 (Pre-refunded 1/15/24) 1/24 at 100.00 A– 16,145,908
14,885 6.000%, 1/15/53 (Pre-refunded 1/15/24) 1/24 at 100.00 A– 16,205,746
1,000 Fullerton Community Facilities District 1, California, Special Tax Bonds, Amerige 9/22 at 100.00 A+ 1,021,290
  Heights, Refunding Series 2012, 5.000%, 9/01/32 (Pre-refunded 9/01/22)      
45,825 Golden State Tobacco Securitization Corporation, California, Enhanced Tobacco Settlement 6/25 at 100.00 Aa3 51,106,790
  Asset-Backed Revenue Bonds, Refunding Series 2015A, 5.000%, 6/01/45 (Pre-refunded 6/01/25)      
1,000 Golden State Tobacco Securitization Corporation, California, Enhanced Tobacco Settlement 6/23 at 100.00 Aa3 1,049,730
  Asset-Backed Revenue Bonds, Series 2013A, 5.000%, 6/01/30 (Pre-refunded 6/01/23)      
4,545 Golden State Tobacco Securitization Corporation, California, Tobacco Settlement 6/22 at 100.00 B– 4,598,449
  Asset-Backed Bonds, Senior Convertible Series 2007A-2, 5.300%, 6/01/37 (Pre-refunded 6/01/22)      
15,735 Golden State Tobacco Securitization Corporation, California, Tobacco Settlement 6/22 at 100.00 N/R 15,918,155
  Asset-Backed Bonds, Series 2018A-1, 5.250%, 6/01/47 (Pre-refunded 6/01/22)      
3,695 Golden State Tobacco Securitization Corporation, California, Tobacco Settlement 6/22 at 100.00 N/R 3,734,795
  Asset-Backed Bonds, Series 2018A-2, 5.000%, 6/01/47 (Pre-refunded 6/01/22)      
  Lake Elsinore Public Financing Authority, California, Local Agency Revenue Bonds, Canyon      
  Hills Improvement Area D, Series 2014A:      
1,140 5.500%, 9/01/33 (Pre-refunded 9/01/23) 9/23 at 100.00 N/R 1,214,294
2,105 5.750%, 9/01/44 (Pre-refunded 9/01/23) 9/23 at 100.00 N/R 2,249,971
1,115 Rio Elementary School District, California, Special Tax Bonds, Community Facilities 9/23 at 100.00 N/R 1,187,665
  District 1, Series 2013, 5.500%, 9/01/39 (Pre-refunded 9/01/23)      
1,000 San Diego County Regional Transportation Commission, California, Sales Tax Revenue 4/22 at 100.00 AAA 1,003,650
  Bonds, Refunding Series 2012A, 5.000%, 4/01/42 (Pre-refunded 4/01/22)      
995 San Marcos Public Financing Authority, California, Special Tax Revenue Bonds, Refunding 9/22 at 100.00 N/R 1,015,676
  Series 2012D, 5.000%, 9/01/36 (Pre-refunded 9/01/22)      
2,870 Sanger Unified School District, Fresno County, California, General Obligation Bonds, 8/24 at 100.00 AA 3,126,262
  Election 2012, Series 2014B, 5.000%, 8/01/39 (Pre-refunded 8/01/24) – AGM Insured      
5,000 Walnut Valley Unified School District, Los Angeles County, California, General 8/24 at 100.00 Aa1 5,452,700
  Obligation Bonds, Election 2007 Measure S, Series 2014C, 5.000%, 8/01/39      
  (Pre-refunded 8/01/24)      
196,080 Total U.S. Guaranteed     214,248,523

 

48

 

  

Principal   Optional Call    
Amount (000) Description (1) Provisions (2) Ratings (3) Value
  Utilities – 27.6% (17.3% of Total Investments)      
$ 5,850 California Infrastructure and Economic Development Bank. Clean Water State Revolving 4/28 at 100.00 AAA $ 6,919,204
  Fund Revenue Bonds, Green Series 2018, 5.000%, 10/01/43      
3,675 California Pollution Control Financing Authority, Water Furnishing Revenue Bonds, San 1/29 at 100.00 BBB 4,223,604
  Diego County Water Authority Desalination Project Pipeline, Refunding Series 2019, 5.000%,      
  7/01/39, 144A      
  Long Beach Bond Finance Authority, California, Natural Gas Purchase Revenue Bonds,      
  Series 2007A:      
2,490 5.000%, 11/15/35 No Opt. Call AA– 3,166,010
1,835 5.500%, 11/15/37 No Opt. Call AA– 2,503,858
10,000 Los Angeles Department of Water and Power, California, Power System Revenue Bonds, 7/22 at 100.00 Aa2 10,128,000
  Series 2012B, 5.000%, 7/01/43      
4,280 Los Angeles Department of Water and Power, California, Power System Revenue Bonds, 7/23 at 100.00 Aa2 4,502,646
  Series 2013B, 5.000%, 7/01/28      
5,000 Los Angeles Department of Water and Power, California, Power System Revenue Bonds, 1/26 at 100.00 Aa2 5,591,800
  Series 2016A, 5.000%, 7/01/46      
6,015 Los Angeles Department of Water and Power, California, Power System Revenue Bonds, 1/27 at 100.00 Aa2 6,902,453
  Series 2017A, 5.000%, 7/01/42      
16,400 Los Angeles Department of Water and Power, California, Power System Revenue Bonds, 7/27 at 100.00 Aa2 18,962,172
  Series 2017C, 5.000%, 7/01/47      
3,490 Los Angeles Department of Water and Power, California, Power System Revenue Bonds, 7/29 at 100.00 AA– 4,178,891
  Series 2019C, 5.000%, 7/01/49      
3,750 Los Angeles Department of Water and Power, California, Power System Revenue Bonds, 7/22 at 100.00 Aa2 3,942,112
  Tender Option Bond Trust 3345. As Of 6/4/2015 Converted to Trust 2015-XF2047, 17.312%,      
  7/01/43, 144A (IF) (8)      
3,775 Los Angeles Department of Water and Power, California, Waterworks Revenue Bonds, 1/26 at 100.00 AA+ 4,256,199
  Refunding Series 2016B, 5.000%, 7/01/35      
16,000 Los Angeles Department of Water and Power, California, Waterworks Revenue Bonds, Series 7/22 at 100.00 AA+ 16,207,040
  2012A, 5.000%, 7/01/43      
10,515 Los Angeles Department of Water and Power, California, Waterworks Revenue Bonds, Series 7/24 at 100.00 AA+ 11,383,434
  2014A, 5.000%, 7/01/44      
  Los Angeles Department of Water and Power, California, Waterworks Revenue Bonds,      
  Series 2016A:      
5,680 5.000%, 7/01/35 1/26 at 100.00 AA+ 6,404,030
1,000 5.000%, 7/01/36 1/26 at 100.00 AA+ 1,127,070
  Los Angeles Department of Water and Power, California, Waterworks Revenue Bonds,      
  Series 2017A:      
9,455 5.000%, 7/01/44 1/27 at 100.00 AA+ 10,854,718
5,000 5.250%, 7/01/44 1/27 at 100.00 AA+ 5,810,400
2,210 Los Angeles, California, Wastewater System Revenue Bonds, Green Subordinate Lien Series 6/27 at 100.00 AA 2,600,153
  2017A, 5.250%, 6/01/47      
5,000 Los Angeles, California, Wastewater System Revenue Bonds, Green Subordinate Series 6/28 at 100.00 AA 5,960,200
  2018A, 5.000%, 6/01/48      
9,500 Los Angeles, California, Wastewater System Revenue Bonds, Refunding Green Series 2015A, 6/25 at 100.00 AA+ 10,495,980
  5.000%, 6/01/44      
  Los Angeles, California, Wastewater System Revenue Bonds, Refunding Subordinate Lien      
  Series 2013A:      
2,000 5.000%, 6/01/34 6/23 at 100.00 AA 2,095,100
3,500 5.000%, 6/01/35 6/23 at 100.00 AA 3,666,005
1,000 New York State Environmental Facilities Corporation, State Clean Water and Drinking 6/28 at 100.00 AAA 1,191,850
  Water Revolving Funds Revenue Bonds, New York City Municipal Water Finance Authority      
  Projects-Second Resolution Bonds,, 5.000%, 6/15/48      
1,500 Placerville Public Financing Authority, California, Wastewater System Refinancing and 3/22 at 100.00 N/R 1,515,015
  Improvement Project Revenue Bonds, Series 2006, 5.000%, 9/01/34 – SYNCORA GTY Insured      

 

49

 

 

 

NKX Nuveen California AMT-Free Quality
  Municipal Income Fund
  Portfolio of Investments (continued)
  February 28, 2022

 

         
Principal   Optional Call    
Amount (000) Description (1) Provisions (2) Ratings (3) Value
  Utilities) (continued)      
  Puerto Rico Aqueduct and Sewerage Authority, Revenue Bonds, Senior Lien Series 2012A:      
$ 580 5.500%, 7/01/28 7/22 at 100.00 CCC $ 588,828
2,140 5.750%, 7/01/37 7/22 at 100.00 CCC 2,174,347
1,750 6.000%, 7/01/47 7/22 at 100.00 CCC 1,779,453
4,500 Rancho California Water District Financing Authority, California, Revenue Bonds, 2/30 at 100.00 AAA 4,646,835
  Refunding Series 2019A, 3.000%, 8/01/40      
2,500 Sacramento County Sanitation Districts Financing Authority, California, Revenue Bonds, 6/24 at 100.00 AA 2,692,175
  Sacramento Regional County Sanitation District, Series 2014A, 5.000%, 12/01/33      
4,000 San Diego Public Facilities Financing Authority, California, Water Utility Revenue 8/26 at 100.00 Aa3 4,571,200
  Bonds, Refunding Subordinate Lien Series 2016B, 5.000%, 8/01/37      
26,220 San Francisco City and County Public Utilities Commission, California, Water Revenue 11/27 at 100.00 Aa2 30,918,362
  Bonds, Refunding Green Series 2017D, 5.000%, 11/01/33 (UB) (8)      
2,975 Southern California Public Power Authority, California, Revenue Bonds, Apex Power 7/24 at 100.00 AA– 3,216,421
  Project Series 2014A, 5.000%, 7/01/37      
183,585 Total Utilities     205,175,565
$ 1,119,864 Total Long-Term Investments (cost $1,081,678,815)     1,186,647,730
  Floating Rate Obligations – (2.8)%     (20,975,000)
  MuniFund Preferred Shares, net of deferred offering costs – (18.8)% (9)     (140,009,423)
  Variable Rate Demand Preferred Shares, net of deferred offering costs – (39.1)% (10)     (290,590,541)
  Other Assets Less Liabilities – 1.0%     7,920,699
  Net Asset Applicable to Common Shares – 100%     $ 742,993,465

 

(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. Optional Call Provisions are not covered by the report of independent registered public accounting firm.
(3)For financial reporting purposes, the ratings disclosed are the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investors Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. This treatment of split-rated securities may differ from that used for other purposes, such as for Fund investment policies. 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. Ratings are not covered by the report of independent registered public accounting firm.
(4)Investment valued at fair value using methods determined in good faith by, or at the discretion of, the Board. For fair value measurement disclosure purposes, investment classified as Level 3.
(5)Defaulted security. A security whose issuer has failed to fully pay principal and/or interest when due, or is under the protection of bankruptcy.
(6)Step-up coupon bond, a bond with a coupon that increases (“steps up”), usually at regular intervals, while the bond is outstanding. The rate shown is the coupon as of the end of the reporting period.
(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.
(8)Investment, or portion of investment, has been pledged to collateralize the net payment obligations for investments in inverse floating rate transactions.
(9)MuniFund Preferred Shares, net of deferred offering costs as a percentage of Total Investments is 11.8%.
(10)Variable Rate Demand Preferred Shares, net of deferred offering costs as a percentage of Total Investments is 24.5%.
144AInvestment is exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These investments may only be resold in transactions exempt from registration, which are normally those transactions with qualified institutional buyers.
ETMEscrowed to maturity
IFInverse floating rate security issued by a tender option bond (“TOB”) trust, the interest rate on which varies inversely with the Securities Industry Financial Markets Association (SIFMA) short-term rate, which resets weekly, or a similar short-term rate, and is reduced by the expenses related to the TOB trust.
UBUnderlying bond of an inverse floating rate trust reflected as a financing transaction.

See accompanying notes to financial statements.

50

 

 

NCA Nuveen California Municipal Value Fund
  Portfolio of Investments
  February 28, 2022

 

Principal   Optional Call    
Amount (000) Description (1) Provisions (2) Ratings (3) Value
  LONG-TERM INVESTMENTS – 99.6% (100.0% of Total Investments)      
  MUNICIPAL BONDS – 99.6% (100.0% of Total Investments)      
  Consumer Staples – 0.5% (0.5% of Total Investments)      
$ 70 California County Tobacco Securitization Agency, Tobacco Settlement Asset-Backed Bonds, 6/30 at 100.00 BBB+ $ 75,876
  Los Angeles County Securitization Corporation, Series 2020A, 4.000%, 6/01/49      
4,895 Silicon Valley Tobacco Securitization Authority, California, Tobacco Settlement 3/22 at 34.18 N/R 1,666,405
  Asset-Backed Bonds, Santa Clara County Tobacco Securitization Corporation, Series 2007A,      
  0.000%, 6/01/41      
4,965 Total Consumer Staples     1,742,281
  Education and Civic Organizations – 1.4% (1.4% of Total Investments)      
200 California Municipal Finance Authority, Charter School Revenue Bonds, Partnerships to 8/22 at 100.00 BB 201,504
  Uplift Communities Project, Series 2012A, 5.250%, 8/01/42      
550 California Municipal Finance Authority, Charter School Revenue Bonds, Rocketship 6/22 at 102.00 N/R 567,375
  Education Multiple Projects, Series 2014A, 7.250%, 6/01/43      
220 California School Finance Authority, School Facility Revenue Bonds, Alliance for 7/25 at 100.00 BBB 238,410
  College-Ready Public Schools Project, Series 2016A, 5.000%, 7/01/46, 144A      
1,425 California School Finance Authority, School Facility Revenue Bonds, Alliance for 7/25 at 101.00 BBB 1,565,348
  College-Ready Public Schools Project, Series 2016C, 5.250%, 7/01/52      
690 California State University, Systemwide Revenue Bonds, Series 2016A, 4.000%, 11/01/38 5/26 at 100.00 Aa2 750,934
1,250 University of California, General Revenue Bonds, Series 2018AZ, 5.000%, 5/15/43 5/28 at 100.00 AA 1,490,887
4,335 Total Education and Civic Organizations     4,814,458
  Health Care – 7.5% (7.6% of Total Investments)      
1,155 California Health Facilities Financing Authority, California, Revenue Bonds, Sutter 11/26 at 100.00 A1 1,317,000
  Health, Refunding Series 2016B, 5.000%, 11/15/46      
  California Health Facilities Financing Authority, California, Revenue Bonds, Sutter      
  Health, Series 2018A:      
1,200 5.000%, 11/15/34 11/27 at 100.00 A1 1,410,480
2,950 5.000%, 11/15/48 11/27 at 100.00 A1 3,434,331
1,090 California Health Facilities Financing Authority, Revenue Bonds, Children’s Hospital Los 8/27 at 100.00 BBB+ 1,249,129
  Angeles, Series 2017A, 5.000%, 8/15/47      
3,830 California Health Facilities Financing Authority, Revenue Bonds, CommonSpirit Health, 4/30 at 100.00 BBB+ 4,190,480
  Series 2020A, 4.000%, 4/01/44      
625 California Health Facilities Financing Authority, Revenue Bonds, Lucile Salter Packard 8/24 at 100.00 AA– 676,725
  Children’s Hospital, Series 2014A, 5.000%, 8/15/43      
240 California Health Facilities Financing Authority, Revenue Bonds, Providence Health & 10/24 at 100.00 AA– 260,479
  Services, Refunding Series 2014A, 5.000%, 10/01/38      
840 California Health Facilities Financing Authority, Revenue Bonds, Providence Health & 10/24 at 100.00 AA– 910,560
  Services, Series 2014B, 5.000%, 10/01/44      
120 California Municipal Finance Authority, Revenue Bonds, Eisenhower Medical Center, 7/27 at 100.00 Baa2 137,330
  Refunding Series 2017A, 5.000%, 7/01/42      
  California Municipal Finance Authority, Revenue Bonds, NorthBay Healthcare Group,      
  Series 2017A:      
100 5.250%, 11/01/41 11/26 at 100.00 BBB– 113,483
400 5.250%, 11/01/47 11/26 at 100.00 BBB– 450,040
1,000 California Statewide Communities Development Authority, California, Redlands Community 10/26 at 100.00 A– 1,122,150
  Hospital, Revenue Bonds, Series 2016, 5.000%, 10/01/46      
150 California Statewide Communities Development Authority, California, Revenue Bonds, Loma 12/24 at 100.00 BB 164,718
  Linda University Medical Center, Series 2014A, 5.250%, 12/01/34      

 

51

 

 

 

NCA Nuveen California Municipal Value Fund
  Portfolio of Investments (continued)
  February 28, 2022

 

Principal   Optional Call    
Amount (000) Description (1) Provisions (2) Ratings (3) Value
  Health Care (continued)      
  California Statewide Communities Development Authority, California, Revenue Bonds, Loma      
  Linda University Medical Center, Series 2016A:      
$ 2,390 5.000%, 12/01/46, 144A 6/26 at 100.00 BB $ 2,672,092
3,410 5.250%, 12/01/56, 144A 6/26 at 100.00 BB 3,833,556
1,000 California Statewide Communities Development Authority, California, Revenue Bonds, Loma 6/28 at 100.00 BB 1,159,860
  Linda University Medical Center, Series 2018A, 5.250%, 12/01/48, 144A      
2,625 California Statewide Communities Development Authority, Revenue Bonds, Kaiser 4/22 at 100.00 AA– 2,633,925
  Permanente, Series 2012A, 5.000%, 4/01/42      
23,125 Total Health Care     25,736,338
  Housing/Multifamily – 9.5% (9.5% of Total Investments)      
2,175 California Community Housing Agency, California, Essential Housing Revenue Bonds, 8/31 at 100.00 N/R 2,098,940
  Creekwood, Series 2021A, 4.000%, 2/01/56, 144A      
1,660 California Community Housing Agency, California, Essential Housing Revenue Bonds, 8/31 at 100.00 N/R 1,546,921
  Glendale Properties, Junior Series 2021A-2, 4.000%, 8/01/47, 144A      
1,250 California Community Housing Agency, California, Essential Housing Revenue Bonds, 2/30 at 100.00 N/R 1,279,462
  Serenity at Larkspur Apartments, Series 2020A, 5.000%, 2/01/50, 144A      
905 California Community Housing Agency, California, Essential Housing Revenue Bonds, Summit 8/32 at 100.00 N/R 750,354
  at Sausalito Apartments, Series 2021A-1, 3.000%, 2/01/57, 144A      
1,115 California Community Housing Agency, Workforce Housing Revenue Bonds, Annadel 4/29 at 100.00 N/R 1,150,479
  Apartments, Series 2019A, 5.000%, 4/01/49, 144A      
2,242 California Housing Finance Agency, Municipal Certificate Revenue Bonds, Class A Series No Opt. Call BBB+ 2,471,825
  2019-2, 4.000%, 3/20/33      
1,885 California Housing Finance Agency, Municipal Certificate Revenue Bonds, Class A Series No Opt. Call BBB+ 2,015,080
  2021-1, 3.500%, 11/20/35      
332 California Housing Finance Agency, Municipal Certificate Revenue Bonds, Class A No Opt. Call BBB+ 375,643
  Series 2019-1, 4.250%, 1/15/35      
  California Municipal Finance Authority, Mobile Home Park Revenue Bonds, Caritas      
  Affordable Housing Inc Projects, Senior Series 2014A:      
80 5.250%, 8/15/39 8/24 at 100.00 A– 84,869
215 5.250%, 8/15/49 8/24 at 100.00 A– 227,178
2,320 CMFA Special Finance Agency I, California, Essential Housing Revenue Bonds, The Mix at 4/31 at 100.00 N/R 2,315,592
  Center City, Series 2021A-2, 4.000%, 4/01/56, 144A      
800 CMFA Special Finance Agency, California, Essential Housing Revenue Bonds, Enclave 2/32 at 100.00 N/R 756,016
  Apartments, Senior Series 2022A-1, 4.000%, 8/01/58, 144A      
405 CMFA Special Finance Agency, California, Essential Housing Revenue Bonds, Latitude 33, 12/31 at 100.00 N/R 329,301
  Senior Series 2021A-1, 3.000%, 12/01/56, 144A      
125 CSCDA Community Improvement Authority, California, Essential Housing Revenue Bonds, 777 5/32 at 100.00 N/R 119,793
  Place-Pomona, Senior Lien Series 2021A-1, 3.600%, 5/01/47, 144A      
1,130 CSCDA Community Improvement Authority, California, Essential Housing Revenue Bonds, 777 5/32 at 100.00 N/R 974,535
  Place-Pomona, Senior Lien Series 2021A-2, 3.250%, 5/01/57, 144A      
175 CSCDA Community Improvement Authority, California, Essential Housing Revenue Bonds, 10/31 at 100.00 N/R 159,871
  Acacia on Santa Rosa Creek, Mezzanine Lien Series 2021B, 4.000%, 10/01/46, 144A      
325 CSCDA Community Improvement Authority, California, Essential Housing Revenue Bonds, 10/31 at 100.00 N/R 328,344
  Acacia on Santa Rosa Creek, Senior Lien Series 2021A, 4.000%, 10/01/56, 144A      
2,005 CSCDA Community Improvement Authority, California, Essential Housing Revenue Bonds, 10/31 at 100.00 N/R 1,946,394
  Altana Glendale, Series 2021A-2, 4.000%, 10/01/56, 144A      
2,310 CSCDA Community Improvement Authority, California, Essential Housing Revenue Bonds, 1/31 at 100.00 N/R 2,436,311
  Center City Anaheim, Series 2020A, 5.000%, 1/01/54, 144A      

 

52

 

 

 

         
Principal   Optional Call    
Amount (000) Description (1) Provisions (2) Ratings (3) Value
  Housing/Multifamily (continued)      
  CSCDA Community Improvement Authority, California, Essential Housing Revenue Bonds,      
  Millennium South Bay-Hawthorne, Series 2021A-1 and A-2:      
$ 610 3.375%, 7/01/43, 144A 7/32 at 100.00 N/R $ 587,015
800 3.250%, 7/01/56, 144A 7/32 at 100.00 N/R 700,080
1,925 CSCDA Community Improvement Authority, California, Essential Housing Revenue Bonds, Moda 10/31 at 100.00 N/R 1,934,086
  at Monrovia Station, Social Series 2021A-2, 4.000%, 10/01/56, 144A      
  CSCDA Community Improvement Authority, California, Essential Housing Revenue Bonds,      
  Monterrey Station Apartments, Senior Lien Series 2021A-1:      
220 3.000%, 7/01/43, 144A 7/32 at 100.00 N/R 196,211
950 3.125%, 7/01/56, 144A 7/32 at 100.00 N/R 804,935
1,345 CSCDA Community Improvement Authority, California, Essential Housing Revenue Bonds, 3/32 at 100.00 N/R 1,112,692
  Orange City Portfolio, Senior Lien Series 2021A-2, 3.000%, 3/01/57, 144A      
880 CSCDA Community Improvement Authority, California, Essential Housing Revenue Bonds, 8/31 at 100.00 N/R 842,063
  Parallel-Anaheim Series 2021A, 4.000%, 8/01/56, 144A      
750 CSCDA Community Improvement Authority, California, Essential Housing Revenue Bonds, 12/31 at 100.00 N/R 663,705
  Pasadena Portfolio Social Bond, Mezzanine Senior Series 2021B, 4.000%, 12/01/56, 144A      
795 CSCDA Community Improvement Authority, California, Essential Housing Revenue Bonds, 7/31 at 100.00 N/R 798,657
  Union South Bay, Series 2021A-2, 4.000%, 7/01/56, 144A      
220 CSCDA Community Improvement Authority, California, Essential Housing Revenue Bonds, 9/31 at 100.00 N/R 183,720
  Waterscape Apartments, Senior Lien Series 2021A, 3.000%, 9/01/56, 144A      
560 CSCDA Community Improvement Authority, California, Essential Housing Revenue Bonds, 6/31 at 100.00 N/R 501,978
  Westgate Phase 1-Pasadena Apartments, Senior Lien Series 2021A-1, 3.000%, 6/01/47, 144A      
2,035 CSCDA Community Improvement Authority, California, Essential Housing Revenue Bonds, 6/31 at 100.00 N/R 1,706,734
  Westgate Phase 1-Pasadena Apartments, Senior Lien Series 2021A-2, 3.125%, 6/01/57, 144A      
1,405 CSCDA Community Improvement Authority, California, Essential Housing Revenue Bonds, Wood 6/32 at 100.00 N/R 1,138,148
  Creek Apartments, Senior Lien Series 2021A-1, 3.000%, 12/01/49      
33,949 Total Housing/Multifamily     32,536,932
  Long-Term Care – 0.2% (0.2% of Total Investments)      
780 California Health Facilities Financing Authority, Insured Revenue Bonds, Community 3/22 at 100.00 AA 783,143
  Program for Persons with Developmental Disabilities, Series 2011A, 6.250%, 2/01/26      
  Tax Obligation/General – 25.6% (25.7% of Total Investments)      
4,000 Anaheim Union High School District, Orange County, California, General Obligation Bonds, 8/27 at 100.00 AAA 4,071,720
  2014 Election Series 2019, 3.000%, 8/01/40      
1,000 California State, General Obligation Bonds, Refunding Various Purpose Series 2013, 2/23 at 100.00 Aa2 1,037,540
  5.000%, 2/01/29      
3,000 California State, General Obligation Bonds, Various Purpose Refunding Series 2015, 8/25 at 100.00 Aa2 3,344,940
  5.000%, 8/01/34      
  California State, General Obligation Bonds, Various Purpose Series 2013:      
2,500 5.000%, 4/01/37 4/23 at 100.00 Aa2 2,606,650
2,500 5.000%, 2/01/43 2/23 at 100.00 Aa2 2,589,650
2,240 5.000%, 11/01/43 11/23 at 100.00 Aa2 2,377,178
  California State, General Obligation Bonds, Various Purpose Series 2014:      
5,000 5.000%, 5/01/32 5/24 at 100.00 Aa2 5,373,500
1,970 5.000%, 10/01/39 10/24 at 100.00 Aa2 2,139,144
2,000 California State, General Obligation Bonds, Various Purpose Series 2018, 5.000%, 10/01/47 4/26 at 100.00 Aa2 2,254,520
2,100 Carlsbad Unified School District, San Diego County, California, General Obligation 5/24 at 100.00 Aa1 2,312,310
  Bonds, Series 2009B, 6.000%, 5/01/34      

 

53

 

 

 

NCA Nuveen California Municipal Value Fund
  Portfolio of Investments (continued)
  February 28, 2022

 

Principal   Optional Call    
Amount (000) Description (1) Provisions (2) Ratings (3) Value
  Tax Obligation/General (continued)      
  Los Angeles Unified School District, Los Angeles County, California, General Obligation      
  Bonds, Election 2008 Series 2018B-1:      
$ 1,000 5.000%, 7/01/37 1/28 at 100.00 AA+ $ 1,186,230
4,000 5.000%, 7/01/38 1/28 at 100.00 AA+ 4,741,000
1,000 5.250%, 7/01/42 1/28 at 100.00 AA+ 1,195,640
2,000 Manhattan Beach Unified School District, Los Angeles County, California, General 9/30 at 100.00 Aa1 2,293,680
  Obligation Bonds, Election 2016 Measure C Series 2020B, 4.000%, 9/01/45      
3,000 Mount San Jacinto Community College District, Riverside County, California, General 8/28 at 100.00 Aa1 3,364,890
  Obligation Bonds, Election 2014, Series 2018B, 4.000%, 8/01/43      
1,000 Oxnard Union High School District, Ventura County, California, General Obligation Bonds, 8/28 at 100.00 Aa2 1,196,100
  Election 2018 Series 2020B, 5.000%, 8/01/45      
2,000 Pittsburg Unified School District Financing Authority, Contra Costa County, California, 9/28 at 100.00 AA 2,372,140
  General Obligation Bonds, Pittsburg Unified School District Bond Program, Series 2019,      
  5.000%, 9/01/47 – AGM Insured      
840 San Benito High School District, San Benito and Santa Clara Counties, California, 8/27 at 100.00 Aa3 997,886
  General Obligation Bonds, 2016 Election Series 2017, 5.250%, 8/01/46      
9,000 San Marcos Unified School District, San Diego County, California, General Obligation No Opt. Call AA– 3,485,070
  Bonds, 2010 Election, Series 2012B, 0.000%, 8/01/51      
5,000 San Mateo County Community College District, California, General Obligation Bonds, 9/28 at 100.00 AAA 6,050,650
  Election 2014 Series 2018B, 5.000%, 9/01/45      
11,875 San Mateo Union High School District, San Mateo County, California, General Obligation 9/36 at 100.00 Aaa 13,331,944
  Bonds, Election 2010 Series 2011A, 0.000%, 9/01/41 (4)      
19,860 Yosemite Community College District, California, General Obligation Bonds, Capital No Opt. Call Aa2 19,138,486
  Appreciation, Election 2004, Series 2010D, 0.000%, 8/01/42 (4)      
86,885 Total Tax Obligation/General     87,460,868
  Tax Obligation/Limited – 11.8% (11.8% of Total Investments)      
1,000 Artesia Redevelopment Agency, California, Tax Allocation Revenue Bonds, Artesia 3/22 at 100.00 BBB+ 1,002,380
  Redevelopment Project Area, Series 2007, 5.375%, 6/01/27      
  Bell Community Redevelopment Agency, California, Tax Allocation Bonds, Bell Project      
  Area, Series 2003:      
1,295 5.500%, 10/01/23 – RAAI Insured 3/22 at 100.00 AA 1,321,405
1,000 5.625%, 10/01/33 – RAAI Insured 3/22 at 100.00 AA 1,019,940
1,175 California Infrastructure and Economic Development Bank, Lease Revenue Bonds, California 8/29 at 100.00 AA 1,409,260
  State Teachers Retirement System Headquarters Expansion, Green Bond-Climate Bond Certified      
  Series 2019, 5.000%, 8/01/38      
1,500 California State Public Works Board, Lease Revenue Bonds, Department of Corrections & 9/23 at 100.00 Aa3 1,593,585
  Rehabilitation, Various Correctional Facilities Series 2013F, 5.250%, 9/01/33      
1,250 California State Public Works Board, Lease Revenue Bonds, Department of Corrections & 9/24 at 100.00 Aa3 1,353,887
  Rehabilitation, Various Correctional Facilities Series 2014A, 5.000%, 9/01/39      
3,000 California State Public Works Board, Lease Revenue Bonds, Various Capital Projects, 11/22 at 100.00 Aa3 3,084,630
  Series 2012G, 5.000%, 11/01/37      
4,000 Los Angeles County Metropolitan Transportation Authority, California, Measure R Sales 6/26 at 100.00 AAA 4,544,920
  Tax Revenue Bonds, Senior Series 2016A, 5.000%, 6/01/38      
2,300 Los Angeles County Metropolitan Transportation Authority, California, Proposition C 7/27 at 100.00 AAA 2,692,403
  Sales Tax Revenue Bonds, Senior Lien Series 2017A, 5.000%, 7/01/39      
3,520 Los Angeles County Public Works Financing Authority, California, Lease Revenue Bonds, 8/22 at 100.00 AA+ 3,583,712
  Multiple Capital Facilities Project II, Series 2012, 5.000%, 8/01/42      
1,000 Los Angeles County Public Works Financing Authority, California, Lease Revenue Bonds, 12/29 at 100.00 AA+ 1,219,440
  Series 2019E-1, 5.000%, 12/01/44      

 

54

 

 

 

Principal   Optional Call    
Amount (000) Description (1) Provisions (2) Ratings (3) Value
  Tax Obligation/Limited (continued)      
  Patterson Public Finance Authority, California, Revenue Bonds, Community Facilities      
  District 2001-1, Senior Series 2013A:      
$ 1,145 5.250%, 9/01/30 9/23 at 100.00 N/R $ 1,198,277
1,040 5.750%, 9/01/39 9/23 at 100.00 N/R 1,092,364
170 Patterson Public Finance Authority, California, Revenue Bonds, Community Facilities 9/23 at 100.00 N/R 178,871
  District 2001-1, Subordinate Lien Series 2013B, 5.875%, 9/01/39      
  Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, Restructured 2018A-1:      
4,795 0.000%, 7/01/46 7/28 at 41.38 N/R 1,557,704
3,433 5.000%, 7/01/58 7/28 at 100.00 N/R 3,849,938
70 San Clemente, California, Special Tax Revenue Bonds, Community Facilities District 9/25 at 100.00 N/R 76,212
  2006-1 Marblehead Coastal, Series 2015, 5.000%, 9/01/40      
155 San Francisco City and County Redevelopment Agency Successor Agency, California, Special 8/24 at 100.00 N/R 162,979
  Tax Bonds, Community Facilities District 7, Hunters Point Shipyard Phase One Improvements,      
  Refunding Series 2014, 5.000%, 8/01/39      
5,000 San Francisco City and County Redevelopment Agency Successor Agency, California, Tax 8/26 at 100.00 A 5,702,750
  Allocation Bonds, Mission Bay North Redevelopment Project, Refunding Series 2016A, 5.000%,      
  8/01/41 – NPFG Insured      
135 Signal Hill Redevelopment Agency, California, Project 1 Tax Allocation Bonds, Series 3/22 at 100.00 N/R 135,545
  2011, 7.000%, 10/01/26      
  Stockton Public Financing Authority, California, Revenue Bonds, Arch Road East Community      
  Facility District 99-02, Series 2018A:      
1,000 5.000%, 9/01/33 9/25 at 103.00 N/R 1,110,850
765 5.000%, 9/01/43 9/25 at 103.00 N/R 842,013
200 Temecula Public Financing Authority, California, Special Tax Bonds, Community Facilities 9/27 at 100.00 N/R 219,988
  District 16-01, Series 2017, 5.750%, 9/01/32, 144A      
185 Transbay Joint Powers Authority, California, Tax Allocation Bonds, Senior Green Series 4/30 at 100.00 A– 222,792
  2020A, 5.000%, 10/01/45      
1,000 Virgin Islands Public Finance Authority, Matching Fund Loan Notes Revenue Bonds, Series 10/22 at 100.00 AA 1,017,650
  2012A, 5.000%, 10/01/32 – AGM Insured      
40,133 Total Tax Obligation/Limited     40,193,495
  Transportation – 16.5% (16.6% of Total Investments)      
1,000 California Municipal Finance Authority, Revenue Bonds, Linxs APM Project, Senior Lien 6/28 at 100.00 BBB– 1,138,030
  Series 2018A, 5.000%, 12/31/47 (AMT)      
225 California Municipal Finance Authority, Special Facility Revenue Bonds, United Airlines, No Opt. Call B+ 242,548
  Inc. Los Angeles International Airport Project, Series 2019, 4.000%, 7/15/29 (AMT)      
1,945 Foothill/Eastern Transportation Corridor Agency, California, Toll Road Revenue Bonds, 1/24 at 100.00 AA 2,076,715
  Refunding Series 2013A, 5.000%, 1/15/42 – AGM Insured      
2,580 Long Beach, California, Harbor Revenue Bonds, Series 2017C, 5.000%, 5/15/47 5/27 at 100.00 AA 2,990,530
2,000 Los Angeles Department of Airports, California, Revenue Bonds, Los Angeles International 5/28 at 100.00 Aa2 2,335,800
  Airport, Refunding Senior Lien Series 2018B, 5.000%, 5/15/32 (AMT)      
5,665 Los Angeles Department of Airports, California, Revenue Bonds, Los Angeles International 5/25 at 100.00 Aa2 6,201,362
  Airport, Senior Lien Series 2015D, 5.000%, 5/15/41 (AMT)      
5,610 Los Angeles Department of Airports, California, Revenue Bonds, Los Angeles International 5/28 at 100.00 Aa3 6,497,446
  Airport, Subordinate Lien Series 2018A, 5.250%, 5/15/48 (AMT)      
1,000 Los Angeles Department of Airports, California, Revenue Bonds, Los Angeles International 5/29 at 100.00 Aa3 1,182,170
  Airport, Subordinate Lien Series 2019F, 5.000%, 5/15/34 (AMT)      

 

55

 

 

 

   
NCA Nuveen California Municipal Value Fund
  Portfolio of Investments (continued)
  February 28, 2022

 

         
Principal   Optional Call    
Amount (000) Description (1) Provisions (2) Ratings (3) Value
  Transportation (continued)      
$ 3,000 Los Angeles Harbors Department, California, Revenue Bonds, Series 2014C, 5.000%, 8/01/44 8/24 at 100.00 AA $ 3,257,970
2,000 San Francisco Airports Commission, California, Revenue Bonds, San Francisco 5/27 at 100.00 A1 2,296,300
  International Airport, Governmental Purpose Second Series 2017B, 5.000%, 5/01/47      
13,570 San Francisco Airports Commission, California, Revenue Bonds, San Francisco 5/26 at 100.00 A1 15,216,448
  International Airport, Second Governmental Purpose Series 2016C, 5.000%, 5/01/46      
4,535 San Francisco Airports Commission, California, Revenue Bonds, San Francisco 5/27 at 100.00 A+ 5,100,061
  International Airport, Second Series 2017A, 5.000%, 5/01/47 (AMT)      
4,465 San Francisco Airports Commission, California, Revenue Bonds, San Francisco 5/28 at 100.00 A1 5,186,857
  International Airport, Second Series 2018E, 5.000%, 5/01/48      
2,000 San Francisco Municipal Transportation Agency, California, Revenue Bonds, Green Series 3/31 at 100.00 Aa2 2,452,720
  2021C, 5.000%, 3/01/51      
250 San Joaquin Hills Transportation Corridor Agency, Orange County, California, Toll Road 1/25 at 100.00 BBB+ 271,842
  Revenue Bonds, Refunding Junior Lien Series 2014B, 5.250%, 1/15/44      
49,845 Total Transportation     56,446,799
  U.S. Guaranteed – 7.4% (7.4% of Total Investments) (5)      
1,500 Bay Area Toll Authority, California, Revenue Bonds, San Francisco Bay Area Toll Bridge, 4/29 at 100.00 AA– 1,837,350
  Subordinate Series 2019S-H, 5.000%, 4/01/44 (Pre-refunded 4/01/29)      
285 California Health Facilities Financing Authority, California, Revenue Bonds, Sutter 8/25 at 100.00 A1 319,770
  Health, Refunding Series 2015A, 5.000%, 8/15/43 (Pre-refunded 8/15/25)      
795 California Health Facilities Financing Authority, California, Revenue Bonds, Sutter 11/26 at 100.00 N/R 922,932
  Health, Refunding Series 2016B, 5.000%, 11/15/46 (Pre-refunded 11/15/26)      
185 California Health Facilities Financing Authority, Revenue Bonds, Providence Health & 10/24 at 100.00 N/R 202,558
  Services, Refunding Series 2014A, 5.000%, 10/01/38 (Pre-refunded 10/01/24)      
1,130 California Municipal Finance Authority, Mobile Home Park Revenue Bonds, Caritas Projects 8/22 at 100.00 A– 1,154,668
  Series 2012A, 5.500%, 8/15/47 (Pre-refunded 8/15/22)      
250 California Municipal Finance Authority, Mobile Home Park Revenue Bonds, Caritas Projects 8/22 at 100.00 N/R 257,328
  Series 2012B, 7.250%, 8/15/47 (Pre-refunded 8/15/22)      
2,215 Foothill/Eastern Transportation Corridor Agency, California, Toll Road Revenue Bonds, 1/24 at 100.00 BBB+ 2,410,806
  Refunding Junior Lien Series 2013C, 6.500%, 1/15/43 (Pre-refunded 1/15/24)      
  Foothill/Eastern Transportation Corridor Agency, California, Toll Road Revenue Bonds,      
  Refunding Series 2013A:      
4,875 5.750%, 1/15/46 (Pre-refunded 1/15/24) 1/24 at 100.00 A– 5,287,961
4,875 6.000%, 1/15/53 (Pre-refunded 1/15/24) 1/24 at 100.00 A– 5,307,559
  Golden State Tobacco Securitization Corporation, California, Enhanced Tobacco Settlement      
  Asset-Backed Revenue Bonds, Refunding Series 2015A:      
80 5.000%, 6/01/40 (Pre-refunded 6/01/25) 6/25 at 100.00 AA– 89,167
100 5.000%, 6/01/40 (Pre-refunded 6/01/25) 6/25 at 100.00 N/R 111,526
2,545 Golden State Tobacco Securitization Corporation, California, Tobacco Settlement 6/22 at 100.00 B– 2,574,929
  Asset-Backed Bonds, Senior Convertible Series 2007A-2, 5.300%, 6/01/37      
  (Pre-refunded 6/01/22)      
2,050 Golden State Tobacco Securitization Corporation, California, Tobacco Settlement 6/22 at 100.00 N/R 2,073,862
  Asset-Backed Bonds, Series 2018A-1, 5.250%, 6/01/47 (Pre-refunded 6/01/22)      
  Port of Oakland, California, Revenue Bonds, Refunding Series 2012P:      
1,210 5.000%, 5/01/29 (Pre-refunded 5/01/22) (AMT) 5/22 at 100.00 A+ 1,218,712
305 5.000%, 5/01/31 (Pre-refunded 5/01/22) (AMT) 5/22 at 100.00 A+ 307,196

 

56

 

 

 

Principal   Optional Call    
Amount (000) Description (1) Provisions (2) Ratings (3) Value
  U.S. Guaranteed (5) (continued)      
$ 1,000 San Diego County Regional Transportation Commission, California, Sales Tax Revenue 4/22 at 100.00 AAA $ 1,003,650
  Bonds, Refunding Series 2012A, 5.000%, 4/01/42 (Pre-refunded 4/01/22)      
23,400 Total U.S. Guaranteed     25,079,974
  Utilities – 19.2% (19.3% of Total Investments)      
1,000 California Infrastructure and Economic Development Bank. Clean Water State Revolving 4/28 at 100.00 AAA 1,182,770
  Fund Revenue Bonds, Green Series 2018, 5.000%, 10/01/43      
  California Pollution Control Financing Authority, Water Furnishing Revenue Bonds,      
  Poseidon Resources Channelside LP Desalination Project, Series 2012:      
2,875 5.000%, 7/01/37 (AMT), 144A 1/23 at 100.00 BBB 2,929,050
3,750 5.000%, 11/21/45 (AMT), 144A 1/23 at 100.00 BBB 3,820,088
4,240 East Bay Municipal Utility District, Alameda and Contra Costa Counties, California, 6/27 at 100.00 AAA 4,928,618
  Water System Revenue Bonds, Green Series 2017A, 5.000%, 6/01/45      
2,000 Irvine Ranch Water District, California, Certificates of Participation, Irvine Ranch 9/26 at 100.00 AAA 2,265,300
  Water District Series 2016, 5.000%, 3/01/41      
1,800 Long Beach Bond Finance Authority, California, Natural Gas Purchase Revenue Bonds, No Opt. Call AA– 2,456,100
  Series 2007A, 5.500%, 11/15/37      
1,000 Los Angeles Department of Water and Power, California, Power System Revenue Bonds, 1/26 at 100.00 Aa2 1,123,100
  Series 2016A, 5.000%, 7/01/40      
835 Los Angeles Department of Water and Power, California, Power System Revenue Bonds, 1/26 at 100.00 Aa2 939,450
  Series 2016B, 5.000%, 7/01/37      
4,850 Los Angeles Department of Water and Power, California, Power System Revenue Bonds, 1/27 at 100.00 Aa2 5,565,569
  Series 2017A, 5.000%, 7/01/42      
2,630 Los Angeles Department of Water and Power, California, Power System Revenue Bonds, 7/27 at 100.00 Aa2 3,051,010
  Series 2017C, 5.000%, 7/01/42      
1,890 Los Angeles Department of Water and Power, California, Power System Revenue Bonds, 1/28 at 100.00 Aa2 2,227,460
  Series 2018A, 5.000%, 7/01/38      
6,000 Los Angeles Department of Water and Power, California, Waterworks Revenue Bonds, Series 1/27 at 100.00 AA+ 6,906,300
  2017A, 5.000%, 7/01/41      
4,475 Los Angeles Department of Water and Power, California, Waterworks Revenue Bonds, Series 1/28 at 100.00 AA+ 5,239,285
  2018A, 5.000%, 7/01/48      
4,000 Los Angeles Department of Water and Power, California, Waterworks Revenue Bonds, Series 7/28 at 100.00 AA+ 4,782,680
  2018B, 5.000%, 7/01/38      
375 Los Angeles, California, Wastewater System Revenue Bonds, Green Subordinate Lien Series 6/27 at 100.00 AA 441,203
  2017A, 5.250%, 6/01/47      
1,400 Los Angeles, California, Wastewater System Revenue Bonds, Green Subordinate Series 6/28 at 100.00 AA 1,685,236
  2018A, 5.000%, 6/01/38      
2,355 Mesa Water District, California, Certificates of Participation, Series 2020, 4.000%, 3/15/45 3/30 at 100.00 AAA 2,681,709
1,000 M-S-R Energy Authority, California, Gas Revenue Bonds, Citigroup Prepay Contracts, No Opt. Call A 1,477,290
  Series 2009C, 6.500%, 11/01/39      
  Puerto Rico Aqueduct and Sewerage Authority, Revenue Bonds, Senior Lien Series 2012A:      
170 5.500%, 7/01/28 7/22 at 100.00 CCC 172,587
635 5.750%, 7/01/37 7/22 at 100.00 CCC 645,192
515 6.000%, 7/01/47 7/22 at 100.00 CCC 523,667

 

57

 

 

NCA Nuveen California Municipal Value Fund
  Portfolio of Investments (continued)
  February 28, 2022

 

Principal   Optional Call    
Amount (000) Description (1) Provisions (2) Ratings (3) Value
  Utilities (continued)      
$ 1,190 Sacramento, California, Wastewater Revenue Bonds, Series 2019, 5.000%, 9/01/39 9/29 at 100.00 AA $ 1,456,025
  San Diego Public Facilities Financing Authority, California, Water Utility Revenue      
  Bonds, Refunding Subordinate Lien Series 2016B:      
2,670 5.000%, 8/01/32 8/26 at 100.00 Aa3 3,058,619
3,000 5.000%, 8/01/37 8/26 at 100.00 Aa3 3,428,400
2,400 Southern California Public Power Authority, Natural Gas Project 1 Revenue Bonds, Series No Opt. Call A2 2,628,912
  2007A, 5.250%, 11/01/24      
57,055 Total Utilities     65,615,620
$ 324,472 Total Long-Term Investments (cost $310,388,387)     340,409,908
  Other Assets Less Liabilities – 0.4%     1,393,887
  Net Asset Applicable to Common Shares – 100%     $ 341,803,795

 

(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. Optional Call Provisions are not covered by the report of independent registered public accounting firm.
(3)For financial reporting purposes, the ratings disclosed are the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investors Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. This treatment of split-rated securities may differ from that used for other purposes, such as for Fund investment policies. 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. Ratings are not covered by the report of independent registered public accounting firm.
(4)Step-up coupon bond, a bond with a coupon that increases (“steps up”), usually at regular intervals, while the bond is outstanding. The rate shown is the coupon as of the end of the reporting period.
(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.
144AInvestment is exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These investments may only be resold in transactions exempt from registration, which are normally those transactions with qualified institutional buyers.
AMTAlternative Minimum Tax

See accompanying notes to financial statements.

58

 

 

NXC Nuveen California Select Tax-Free
  Income Portfolio
  Portfolio of Investments
  February 28, 2022

 

Principal   Optional Call    
Amount (000) Description (1) Provisions (2) Ratings (3) Value
  LONG-TERM INVESTMENTS – 98.1% (100.0% of Total Investments)      
  MUNICIPAL BONDS – 98.1% (100.0% of Total Investments)      
  Consumer Staples – 0.0% (0.0% of Total Investments)      
$ 20 California County Tobacco Securitization Agency, Tobacco Settlement Asset-Backed Bonds, 6/30 at 100.00 BBB+ $ 21,679
  Los Angeles County Securitization Corporation, Series 2020A, 4.000%, 6/01/49      
  Education and Civic Organizations – 1.3% (1.3% of Total Investments)      
550 California Municipal Finance Authority, Charter School Revenue Bonds, Partnerships to 8/22 at 100.00 BB 554,136
  Uplift Communities Project, Series 2012A, 5.250%, 8/01/42      
160 California Municipal Finance Authority, Charter School Revenue Bonds, Rocketship 6/22 at 102.00 N/R 165,054
  Education Multiple Projects, Series 2014A, 7.250%, 6/01/43      
60 California School Finance Authority, School Facility Revenue Bonds, Alliance for 7/25 at 100.00 BBB 65,021
  College-Ready Public Schools Project, Series 2016A, 5.000%, 7/01/46, 144A      
385 California School Finance Authority, School Facility Revenue Bonds, Alliance for 7/25 at 101.00 BBB 420,774
  College-Ready Public Schools Project, Series 2016C, 5.000%, 7/01/46      
1,155 Total Education and Civic Organizations     1,204,985
  Health Care – 6.9% (7.1% of Total Investments)      
590 California Health Facilities Financing Authority, California, Revenue Bonds, Sutter 11/26 at 100.00 A1 672,754
  Health, Refunding Series 2016B, 5.000%, 11/15/46      
1,000 California Health Facilities Financing Authority, California, Revenue Bonds, Sutter 11/27 at 100.00 A1 1,164,180
  Health, Refunding Series 2017A, 5.000%, 11/15/48      
1,000 California Health Facilities Financing Authority, California, Revenue Bonds, Sutter 11/27 at 100.00 A1 1,164,180
  Health, Series 2018A, 5.000%, 11/15/48      
1,000 California Health Facilities Financing Authority, Revenue Bonds, CommonSpirit Health, 4/30 at 100.00 BBB+ 1,094,120
  Series 2020A, 4.000%, 4/01/44      
115 California Health Facilities Financing Authority, Revenue Bonds, Lucile Salter Packard 8/24 at 100.00 AA– 124,517
  Children’s Hospital, Series 2014A, 5.000%, 8/15/43      
70 California Health Facilities Financing Authority, Revenue Bonds, Providence Health & 10/24 at 100.00 AA– 75,973
  Services, Refunding Series 2014A, 5.000%, 10/01/38      
255 California Health Facilities Financing Authority, Revenue Bonds, Providence Health & 10/24 at 100.00 AA– 276,420
  Services, Series 2014B, 5.000%, 10/01/44      
35 California Municipal Finance Authority, Revenue Bonds, Eisenhower Medical Center, 7/27 at 100.00 Baa2 40,055
  Refunding Series 2017A, 5.000%, 7/01/42      
130 California Municipal Finance Authority, Revenue Bonds, NorthBay Healthcare Group, Series 11/26 at 100.00 BBB– 147,528
  2017A, 5.250%, 11/01/41      
350 California Statewide Communities Development Authority, California, Revenue Bonds, Loma 12/24 at 100.00 BB 384,342
  Linda University Medical Center, Series 2014A, 5.250%, 12/01/34      
  California Statewide Communities Development Authority, California, Revenue Bonds, Loma      
  Linda University Medical Center, Series 2016A:      
825 5.000%, 12/01/46, 144A 6/26 at 100.00 BB 922,375
540 5.250%, 12/01/56, 144A 6/26 at 100.00 BB 607,073
5,910 Total Health Care     6,673,517
  Housing/Multifamily – 9.3% (9.5% of Total Investments)      
615 California Community Housing Agency, California, Essential Housing Revenue Bonds, 8/31 at 100.00 N/R 593,493
  Creekwood, Series 2021A, 4.000%, 2/01/56, 144A      
440 California Community Housing Agency, California, Essential Housing Revenue Bonds, 8/31 at 100.00 N/R 410,027
  Glendale Properties, Junior Series 2021A-2, 4.000%, 8/01/47, 144A      
750 California Community Housing Agency, California, Essential Housing Revenue Bonds, 2/30 at 100.00 N/R 767,677
  Serenity at Larkspur Apartments, Series 2020A, 5.000%, 2/01/50, 144A      

 

59

 

  

NXC Nuveen California Select Tax-Free Income Portfolio
  Portfolio of Investments (continued)
  February 28, 2022

 

Principal   Optional Call    
Amount (000) Description (1) Provisions (2) Ratings (3) Value
  Housing/Multifamily (continued)      
$ 260 California Community Housing Agency, California, Essential Housing Revenue Bonds, Summit 8/32 at 100.00 N/R $ 215,571
  at Sausalito Apartments, Series 2021A-1, 3.000%, 2/01/57, 144A      
628 California Housing Finance Agency, Municipal Certificate Revenue Bonds, Class A Series No Opt. Call BBB+ 692,537
  2019-2, 4.000%, 3/20/33      
533 California Housing Finance Agency, Municipal Certificate Revenue Bonds, Class A Series No Opt. Call BBB+ 569,708
  2021-1, 3.500%, 11/20/35      
92 California Housing Finance Agency, Municipal Certificate Revenue Bonds, Class A No Opt. Call BBB+ 103,439
  Series2019-1, 4.250%, 1/15/35      
  California Municipal Finance Authority, Mobile Home Park Revenue Bonds, Caritas      
  Affordable Housing Inc Projects, Senior Series 2014A:      
25 5.250%, 8/15/39 8/24 at 100.00 A– 26,522
65 5.250%, 8/15/49 8/24 at 100.00 A– 68,682
660 CMFA Special Finance Agency I, California, Essential Housing Revenue Bonds, The Mix at 4/31 at 100.00 N/R 658,746
  Center City, Series 2021A-2, 4.000%, 4/01/56, 144A      
225 CMFA Special Finance Agency, California, Essential Housing Revenue Bonds, Enclave 2/32 at 100.00 N/R 212,630
  Apartments, Senior Series 2022A-1, 4.000%, 8/01/58, 144A      
115 CMFA Special Finance Agency, California, Essential Housing Revenue Bonds, Latitude 33, 12/31 at 100.00 N/R 93,505
  Senior Series 2021A-1, 3.000%, 12/01/56, 144A      
320 CSCDA Community Improvement Authority, California, Essential Housing Revenue Bonds, 777 5/32 at 100.00 N/R 275,974
  Place-Pomona, Senior Lien Series 2021A-2, 3.250%, 5/01/57, 144A      
100 CSCDA Community Improvement Authority, California, Essential Housing Revenue Bonds, 10/31 at 100.00 N/R 101,029
  Acacia on Santa Rosa Creek, Senior Lien Series 2021A, 4.000%, 10/01/56, 144A      
560 CSCDA Community Improvement Authority, California, Essential Housing Revenue Bonds, 10/31 at 100.00 N/R 543,631
  Altana Glendale, Series 2021A-2, 4.000%, 10/01/56, 144A      
650 CSCDA Community Improvement Authority, California, Essential Housing Revenue Bonds, 1/31 at 100.00 N/R 685,542
  Center City Anaheim, Series 2020A, 5.000%, 1/01/54, 144A      
  CSCDA Community Improvement Authority, California, Essential Housing Revenue Bonds,      
  Millennium South Bay-Hawthorne, Series 2021A-1 and A-2:      
175 3.375%, 7/01/43, 144A 7/32 at 100.00 N/R 168,406
195 3.250%, 7/01/56, 144A 7/32 at 100.00 N/R 170,645
540 CSCDA Community Improvement Authority, California, Essential Housing Revenue Bonds, Moda 10/31 at 100.00 N/R 542,549
  at Monrovia Station, Social Series 2021A-2, 4.000%, 10/01/56, 144A      
265 CSCDA Community Improvement Authority, California, Essential Housing Revenue Bonds, 7/32 at 100.00 N/R 224,535
  Monterrey Station Apartments, Senior Lien Series 2021A-1, 3.125%, 7/01/56, 144A      
380 CSCDA Community Improvement Authority, California, Essential Housing Revenue Bonds, 3/32 at 100.00 N/R 314,366
  Orange City Portfolio, Senior Lien Series 2021A-2, 3.000%, 3/01/57, 144A      
250 CSCDA Community Improvement Authority, California, Essential Housing Revenue Bonds, 8/31 at 100.00 N/R 239,223
  Parallel-Anaheim Series 2021A, 4.000%, 8/01/56, 144A      
150 CSCDA Community Improvement Authority, California, Essential Housing Revenue Bonds, 12/31 at 100.00 N/R 132,741
  Pasadena Portfolio Social Bond, Mezzanine Senior Series 2021B, 4.000%, 12/01/56, 144A      
185 CSCDA Community Improvement Authority, California, Essential Housing Revenue Bonds, 7/31 at 100.00 N/R 185,851
  Union South Bay, Series 2021A-2, 4.000%, 7/01/56, 144A      
160 CSCDA Community Improvement Authority, California, Essential Housing Revenue Bonds, 6/31 at 100.00 N/R 143,422
  Westgate Phase 1-Pasadena Apartments, Senior Lien Series 2021A-1, 3.000%, 6/01/47, 144A      
585 CSCDA Community Improvement Authority, California, Essential Housing Revenue Bonds, 6/31 at 100.00 N/R 490,634
  Westgate Phase 1-Pasadena Apartments, Senior Lien Series 2021A-2, 3.125%, 6/01/57, 144A      
410 CSCDA Community Improvement Authority, California, Essential Housing Revenue Bonds, Wood 6/32 at 100.00 N/R 332,129
  Creek Apartments, Senior Lien Series 2021A-1, 3.000%, 12/01/49      
9,333 Total Housing/Multifamily     8,963,214

 

60

 

 

 

Principal   Optional Call    
Amount (000) Description (1) Provisions (2) Ratings (3) Value
  Tax Obligation/General – 21.3% (21.7% of Total Investments)      
$ 1,000 California State, General Obligation Bonds, Various Purpose Refunding Series 2015, 8/25 at 100.00 Aa2 $ 1,114,980
  5.000%, 8/01/34      
2,000 California State, General Obligation Bonds, Various Purpose Series 2012, 5.250%, 4/01/35 4/22 at 100.00 Aa2 2,006,900
1,000 Chaffey Joint Union High School District, San Bernardino County, California, General 8/28 at 100.00 Aa1 1,120,310
  Obligation Bonds, Election 2012 Series 2019D, 4.000%, 8/01/49      
1,000 Los Angeles Unified School District, Los Angeles County, California, General Obligation 1/28 at 100.00 AA+ 1,195,640
  Bonds, Election 2008 Series 2018B-1, 5.250%, 7/01/42      
7,575 Palomar Pomerado Health, California, General Obligation Bonds, Convertible Capital No Opt. Call A2 5,266,594
  Appreciation, Election 2004 Series 2010A, 0.000%, 8/01/34      
1,000 San Benito High School District, San Benito and Santa Clara Counties, California, 8/27 at 100.00 Aa3 1,187,960
  General Obligation Bonds, 2016 Election Series 2017, 5.250%, 8/01/46      
8,075 San Bernardino Community College District, California, General Obligation Bonds, No Opt. Call Aa1 3,920,089
  Election of 2008 Series 2009B, 0.000%, 8/01/44      
2,050 San Mateo County Community College District, California, General Obligation Bonds, 9/28 at 100.00 AAA 2,480,767
  Election 2014 Series 2018B, 5.000%, 9/01/45      
2,000 West Hills Community College District, California, General Obligation Bonds, School 8/31 at 100.00 AA 2,230,740
  Facilities Improvement District 3, 2008 Election Series 2011, 0.000%, 8/01/38 – AGM Insured (4)      
25,700 Total Tax Obligation/General     20,523,980
  Tax Obligation/Limited – 16.2% (16.5% of Total Investments)      
1,000 Bell Community Redevelopment Agency, California, Tax Allocation Bonds, Bell Project 3/22 at 100.00 AA 1,019,940
  Area, Series 2003, 5.625%, 10/01/33 – RAAI Insured      
2,000 California State Public Works Board, Lease Revenue Bonds, Department of Corrections & 9/23 at 100.00 Aa3 2,124,780
  Rehabilitation, Various Correctional Facilities Series 2013F, 5.250%, 9/01/33      
1,000 California State Public Works Board, Lease Revenue Bonds, Department of General 11/31 at 100.00 N/R 1,138,890
  Services, New Nature Resources, Green Series 2021C, 4.000%, 11/01/41      
1,215 Los Angeles Community Redevelopment Agency, California, Lease Revenue Bonds, Vermont 3/22 at 100.00 Aa2 1,218,293
  Manchester Social Services Project, Series 2005, 5.000%, 9/01/37 – AMBAC Insured      
1,000 Los Angeles County Metropolitan Transportation Authority, California, Measure R Sales 6/26 at 100.00 AAA 1,136,230
  Tax Revenue Bonds, Senior Series 2016A, 5.000%, 6/01/38      
3,000 Los Angeles County Metropolitan Transportation Authority, California, Proposition C 7/27 at 100.00 AAA 3,498,480
  Sales Tax Revenue Bonds, Senior Lien Series 2017A, 5.000%, 7/01/42      
1,000 Norco Redevelopment Agency, California, Tax Allocation Bonds, Project Area 1, Series 3/22 at 100.00 A+ 1,004,250
  2009, 7.000%, 3/01/34      
  Patterson Public Finance Authority, California, Revenue Bonds, Community Facilities      
  District 2001-1, Senior Series 2013A:      
350 5.250%, 9/01/30 9/23 at 100.00 N/R 366,285
320 5.750%, 9/01/39 9/23 at 100.00 N/R 336,112
60 Patterson Public Finance Authority, California, Revenue Bonds, Community Facilities 9/23 at 100.00 N/R 63,131
  District 2001-1, Subordinate Lien Series 2013B, 5.875%, 9/01/39      
  Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, Restructured 2018A-1:      
705 0.000%, 7/01/46 7/28 at 41.38 N/R 229,026
763 5.000%, 7/01/58 7/28 at 100.00 N/R 855,666
20 San Clemente, California, Special Tax Revenue Bonds, Community Facilities District 9/25 at 100.00 N/R 21,775
  2006-1 Marblehead Coastal, Series 2015, 5.000%, 9/01/40      
60 San Francisco City and County Redevelopment Agency Successor Agency, California, Special 8/24 at 100.00 N/R 63,089
  Tax Bonds, Community Facilities District 7, Hunters Point Shipyard Phase One Improvements,      
  Refunding Series 2014, 5.000%, 8/01/39      
40 Signal Hill Redevelopment Agency, California, Project 1 Tax Allocation Bonds, Series 3/22 at 100.00 N/R 40,162
  2011, 7.000%, 10/01/26      
1,285 Stockton Public Financing Authority, California, Revenue Bonds, Arch Road East Community 9/25 at 103.00 N/R 1,436,823
  Facility District 99-02, Series 2018A, 5.000%, 9/01/28      

 

61

 

 

 

NXC Nuveen California Select Tax-Free Income Portfolio
  Portfolio of Investments (continued)
  February 28, 2022

 

Principal   Optional Call    
Amount (000) Description (1) Provisions (2) Ratings (3) Value
  Tax Obligation/Limited (continued)      
$ 50 Transbay Joint Powers Authority, California, Tax Allocation Bonds, Senior Green Series 4/30 at 100.00 A– $ 60,214
  2020A, 5.000%, 10/01/45      
1,000 Virgin Islands Public Finance Authority, Matching Fund Loan Notes Revenue Bonds, Series 10/22 at 100.00 AA 1,017,650
  2012A, 5.000%, 10/01/32 – AGM Insured      
14,868 Total Tax Obligation/Limited     15,630,796
  Transportation – 8.8% (9.0% of Total Investments)      
60 California Municipal Finance Authority, Special Facility Revenue Bonds, United Airlines, No Opt. Call B+ 64,679
  Inc. Los Angeles International Airport Project, Series 2019, 4.000%, 7/15/29 (AMT)      
1,000 Foothill/Eastern Transportation Corridor Agency, California, Toll Road Revenue Bonds, 1/24 at 100.00 AA 1,067,720
  Refunding Series 2013A, 5.000%, 1/15/42 – AGM Insured      
800 Long Beach, California, Harbor Revenue Bonds, Series 2015D, 5.000%, 5/15/42 5/25 at 100.00 AA 878,624
1,525 Los Angeles Department of Airports, California, Revenue Bonds, Los Angeles International 5/28 at 100.00 Aa3 1,766,240
  Airport, Subordinate Lien Series 2018A, 5.250%, 5/15/48 (AMT)      
2,315 Los Angeles Department of Airports, California, Revenue Bonds, Los Angeles International 5/29 at 100.00 Aa3 2,729,732
  Airport, Subordinate Lien Series 2019F, 5.000%, 5/15/37 (AMT)      
1,000 San Diego County Regional Airport Authority, California, Airport Revenue Bonds, 7/29 at 100.00 A+ 1,148,260
  Subordinate Series 2019B, 5.000%, 7/01/49 (AMT)      
750 San Joaquin Hills Transportation Corridor Agency, Orange County, California, Toll Road 1/25 at 100.00 BBB+ 815,528
  Revenue Bonds, Refunding Junior Lien Series 2014B, 5.250%, 1/15/44      
7,450 Total Transportation     8,470,783
  U.S. Guaranteed – 15.0% (15.2% of Total Investments) (5)      
1,000 Bay Area Water Supply and Conservation Agency, California, Revenue Bonds, Capital Cost 4/23 at 100.00 AA– 1,043,660
  Recovery Prepayment Program, Series 2013A, 5.000%, 10/01/34 (Pre-refunded 4/01/23)      
410 California Health Facilities Financing Authority, California, Revenue Bonds, Sutter 11/26 at 100.00 N/R 475,977
  Health, Refunding Series 2016B, 5.000%, 11/15/46 (Pre-refunded 11/15/26)      
2,500 California Health Facilities Financing Authority, California, Revenue Bonds, Sutter 11/25 at 100.00 A1 2,824,850
  Health, Series 2016A, 5.000%, 11/15/41 (Pre-refunded 11/15/25)      
55 California Health Facilities Financing Authority, Revenue Bonds, Providence Health & 10/24 at 100.00 N/R 60,220
  Services, Refunding Series 2014A, 5.000%, 10/01/38 (Pre-refunded 10/01/24)      
395 California Municipal Finance Authority, Mobile Home Park Revenue Bonds, Caritas Projects 8/22 at 100.00 A– 403,623
  Series 2012A, 5.500%, 8/15/47 (Pre-refunded 8/15/22)      
530 Foothill/Eastern Transportation Corridor Agency, California, Toll Road Revenue Bonds, 1/24 at 100.00 BBB+ 576,852
  Refunding Junior Lien Series 2013C, 6.500%, 1/15/43 (Pre-refunded 1/15/24)      
  Foothill/Eastern Transportation Corridor Agency, California, Toll Road Revenue Bonds,      
  Refunding Series 2013A:      
1,170 5.750%, 1/15/46 (Pre-refunded 1/15/24) 1/24 at 100.00 A– 1,269,111
1,175 6.000%, 1/15/53 (Pre-refunded 1/15/24) 1/24 at 100.00 A– 1,279,258
  Golden State Tobacco Securitization Corporation, California, Enhanced Tobacco Settlement      
  Asset-Backed Revenue Bonds, Refunding Series 2015A:      
1,350 5.000%, 6/01/40 (Pre-refunded 6/01/25) 6/25 at 100.00 AA– 1,504,696
1,650 5.000%, 6/01/40 (Pre-refunded 6/01/25) 6/25 at 100.00 N/R 1,840,179
780 Golden State Tobacco Securitization Corporation, California, Tobacco Settlement 6/22 at 100.00 B– 789,173
  Asset-Backed Bonds, Senior Convertible Series 2007A-2, 5.300%, 6/01/37 (Pre-refunded 6/01/22)      
955 Port of Oakland, California, Revenue Bonds, Refunding Series 2012P, 5/22 at 100.00 A+ 961,876
  5.000%, 5/01/31 (Pre-refunded 5/01/22) (AMT)      
1,365 San Diego County Regional Transportation Commission, California, Sales Tax Revenue 4/22 at 100.00 AAA 1,369,982
  Bonds, Refunding Series 2012A, 5.000%, 4/01/42 (Pre-refunded 4/01/22)      
13,335 Total U.S. Guaranteed     14,399,457

 

62

 

 

 

Principal   Optional Call    
Amount (000) Description (1) Provisions (2) Ratings (3) Value
  Utilities – 19.3% (19.7% of Total Investments)      
$ 1,480 California Infrastructure and Economic Development Bank, Clean Water State Revolving 4/27 at 100.00 AAA $ 1,721,181
  Fund Revenue Bonds, Green Series 2017, 5.000%, 10/01/33      
  California Pollution Control Financing Authority, Water Furnishing Revenue Bonds,      
  Poseidon Resources Channelside LP Desalination Project, Series 2012:      
375 5.000%, 7/01/37 (AMT), 144A 1/23 at 100.00 BBB 382,050
1,160 5.000%, 11/21/45 (AMT), 144A 1/23 at 100.00 BBB 1,181,680
1,730 East Bay Municipal Utility District, Alameda and Contra Costa Counties, California, 6/27 at 100.00 AAA 1,900,872
  Water System Revenue Bonds, Green Series 2017A, 4.000%, 6/01/45      
2,000 Irvine Ranch Water District, California, Certificates of Participation, Irvine Ranch 9/26 at 100.00 AAA 2,265,300
  Water District Series 2016, 5.000%, 3/01/41      
645 Long Beach Bond Finance Authority, California, Natural Gas Purchase Revenue Bonds, No Opt. Call AA– 880,103
  Series 2007A, 5.500%, 11/15/37      
3,000 Los Angeles Department of Water and Power, California, Power System Revenue Bonds, 7/27 at 100.00 Aa2 3,468,690
  Series 2017C, 5.000%, 7/01/47      
2,000 Los Angeles Department of Water and Power, California, Power System Revenue Bonds, 1/28 at 100.00 Aa2 2,357,100
  Series 2018A, 5.000%, 7/01/38      
1,970 Los Angeles Department of Water and Power, California, Waterworks Revenue Bonds, Series 7/24 at 100.00 AA+ 2,132,702
  2014A, 5.000%, 7/01/44      
1,000 Los Angeles Department of Water and Power, California, Waterworks Revenue Bonds, Series 7/28 at 100.00 AA+ 1,195,670
  2018B, 5.000%, 7/01/38      
620 Los Angeles, California, Wastewater System Revenue Bonds, Green Subordinate Lien Series 6/27 at 100.00 AA 729,455
  2017A, 5.250%, 6/01/47      
  Puerto Rico Aqueduct and Sewerage Authority, Revenue Bonds, Senior Lien Series 2012A:      
50 5.500%, 7/01/28 7/22 at 100.00 CCC 50,761
175 5.750%, 7/01/37 7/22 at 100.00 CCC 177,809
145 6.000%, 7/01/47 7/22 at 100.00 CCC 147,440
16,350 Total Utilities     18,590,813
$ 94,121 Total Long-Term Investments (cost $86,771,015)     94,479,224
  Other Assets Less Liabilities – 1.9%     1,873,260
  Net Assets Applicable to Common Shares – 100%     $ 96,352,484

 

(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. Optional Call Provisions are not covered by the report of independent registered public accounting firm.
(3)For financial reporting purposes, the ratings disclosed are the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investors Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. This treatment of split-rated securities may differ from that used for other purposes, such as for Fund investment policies. 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. Ratings are not covered by the report of independent registered public accounting firm.
(4)Step-up coupon bond, a bond with a coupon that increases (“steps up”), usually at regular intervals, while the bond is outstanding. The rate shown is the coupon as of the end of the reporting period.
(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.
144AInvestment is exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These investments may only be resold in transactions exempt from registration, which are normally those transactions with qualified institutional buyers.
AMTAlternative Minimum Tax

See accompanying notes to financial statements.

63

 

 

Statement of Assets and Liabilities

February 28, 2022

  NAC NKX NCA NXC
Assets        
Long-term investments, at value (cost $3,184,117,563, $1,081,678,815,        
$310,388,387 and $86,771,015, respectively) $3,421,700,272 $1,186,647,730 $340,409,908 $94,479,224
Cash 26,743
Receivable for:        
Interest 36,174,319 12,944,316 3,407,495 1,069,726
Investments sold 21,707,078 3,040,400 10,000 1,750,000
Other assets 1,184,243 407,306 59,313 32,597
Total assets 3,480,765,912 1,203,039,752 343,913,459 97,331,547
Liabilities        
Cash overdraft 10,012,969 4,879,892 621,875
Floating rate obligations 20,975,000
Payable for:        
Dividends 7,646,748 2,589,464 774,444 244,201
Interest 41,855
Investments purchased - regular settlement 4,928,112 1,026,690
MuniFund Preferred (“MFP”) Shares, net of deferred offering costs        
(liquidation preference $320,000,000, $140,400,000, $— and $— respectively) 319,829,781 140,009,423
Variable Rate Demand Preferred (“VRDP”) Shares, net of deferred offering costs        
(liquidation preference $957,600,000 and $292,200,000, $— and        
$— respectively) 954,400,258 290,590,541
Accrued expenses:        
Management fees 1,475,175 533,024 121,877 18,826
Trustees fees 808,058 206,976 61,287 33,043
Other 590,928 220,112 125,366 61,118
Total liabilities 1,299,692,029 460,046,287 2,109,664 979,063
Commitments and contingencies (as disclosed in Note 8)        
Net assets applicable to common shares $2,181,073,883 $ 742,993,465 $341,803,795 $96,352,484
Common shares outstanding 144,735,059 47,520,334 33,108,196 6,360,883
Net asset value ("NAV") per common share outstanding $ 15.07 $ 15.64 $ 10.32 $ 15.15
Net assets applicable to common shares consist of:        
Common shares, $0.01 par value per share $ 1,447,351 $ 475,203 $ 331,082 $ 63,609
Paid-in surplus 1,965,394,601 636,361,895 312,878,100 88,530,803
Total distributable earnings (loss) 214,231,931 106,156,367 28,594,613 7,758,072
Net assets applicable to common shares $2,181,073,883 $ 742,993,465 $341,803,795 $96,352,484
Authorized shares:        
Common Unlimited Unlimited Unlimited Unlimited
Preferred Unlimited Unlimited N/A N/A
N/A – Fund is not authorized to issue Preferred shares.        

 

See accompanying notes to financial statements.

64

 

  

Statement of Operations

  NAC NKX NCA   NXC  
        Eleven Months    
  Year Ended Year Ended Year Ended Ended   Year Ended
  2/28/22 2/28/22 2/28/22 2/28/22   3/31/21
Investment income $130,154,916 $44,445,676 $12,125,627 $ 3,209,158   $3,623,320
Expenses            
Management fees 19,944,443 6,982,196 1,581,280 233,667   257,651
Interest expense and amortization of offering costs 7,970,555 912,224 951 336  
Liquidity fees 4,275,420 2,238,476  
Remarketing fees 530,061 701,662  
Custodian expenses, net 264,894 99,588 44,357 16,733   20,252
Trustees fees 99,711 33,889 12,695 2,806   2,883
Professional fees 489,951 368,061 47,099 32,459   31,424
Shareholder reporting expenses 99,037 41,961 27,720 11,536   17,509
Shareholder servicing agent fees 28,136 8,965 11,662 2,873   2,274
Stock exchange listing fees 40,906 13,430 8,166 6,343   6,550
Investor relations expenses 121,151 41,128 12,082 2,960   4,761
Reorganization expenses 228,211  
Other 115,038 536,773 16,249 11,794   9,117
Total expenses 33,979,303 11,978,353 1,990,472 321,507   352,421
Net investment income (loss) 96,175,613 32,467,323 10,135,155 2,887,651   3,270,899
Realized and Unrealized Gain (Loss)            
Net realized gain (loss) from investments (2,554,993) 458,904 182,061 33,430   460,516
Change in net unrealized appreciation            
(depreciation) of investments (120,601,420) (41,296,515) (11,767,724) (4,195,935)   2,121,520
Net realized and unrealized gain (loss) (123,156,413) (40,837,611) (11,585,663) (4,162,505)   2,582,036
Net increase (decrease) in net assets applicable to            
common shares from operations $ (26,980,800) $ (8,370,288) $ (1,450,508) $(1,274,854)   $5,852,935

 

See accompanying notes to financial statements.

65

 

  

Statement of Changes in Net Assets

  NAC   NKX
  Year Year   Year Year
  Ended Ended   Ended Ended
  2/28/22 2/28/21   2/28/22 2/28/21
Operations          
Net investment income (loss) $ 96,175,613 $ 92,289,029   $ 32,467,323 $ 31,588,590
Net realized gain (loss) from investments (2,554,993) 2,290,667   458,904 98,007
Change in net unrealized appreciation (depreciation) of investments (120,601,420) (118,166,969)   (41,296,515) (38,495,336)
Net increase (decrease) in net assets applicable to common shares          
from operations (26,980,800) (23,587,273)   (8,370,288) (6,808,739)
Distributions to Common Shareholders          
Dividends (94,656,728) (92,123,863)   (31,838,623) (30,650,615)
Decrease in net assets applicable to common shares from          
distributions to common shareholders (94,656,728) (92,123,863)   (31,838,623) (30,650,615)
Capital Share Transactions          
Common shares:          
Net proceeds from shares issued to shareholders due to          
reinvestment of distributions  
Issued in the Reorganization  
Net increase (decrease) in net assets applicable to common          
shares from capital share transactions  
Net increase (decrease) in net assets applicable to common shares (121,637,528) (115,711,136)   (40,208,911) (37,459,354)
Net assets applicable to common shares at the beginning of period 2,302,711,411 2,418,422,547   783,202,376 820,661,730
Net assets applicable to common shares at the end of period $2,181,073,883 $2,302,711,411   $742,993,465 $783,202,376

 

See accompanying notes to financial statements.

66

 

 

 

  NCA   NXC
  Year Year   Eleven Months Year Year
  Ended Ended   Ended Ended Ended
  2/28/22 2/28/21   2/28/22 3/31/21 3/31/20
Operations            
Net investment income (loss) $ 10,135,155 $ 8,851,993   $ 2,887,651 $ 3,270,899 $ 3,375,449
Net realized gain (loss) from investments 182,061 910,643   33,430 460,516 129,883
Change in net unrealized appreciation            
(depreciation) of investments (11,767,724) (11,543,454)   (4,195,935) 2,121,520 1,198,763
Net increase (decrease) in net assets applicable to            
common shares from operations (1,450,508) (1,780,818)   (1,274,854) 5,852,935 4,704,095
Distributions to Common Shareholders            
Dividends (9,911,780) (8,933,471)   (3,049,063) (3,331,881) (3,295,962)
Decrease in net assets applicable to common shares from            
distributions to common shareholders (9,911,780) (8,933,471)   (3,049,063) (3,331,881) (3,295,962)
Capital Share Transactions            
Common shares:            
Net proceeds from shares issued to shareholders            
due to reinvestment of distributions 61,387   75,933 66,551 31,306
Issued in the Reorganization 53,540,962  
Net increase (decrease) in net assets applicable to            
common shares from capital share transactions 53,540,962 61,387   75,933 66,551 31,306
Net increase (decrease) in net assets applicable to            
common shares 42,178,674 (10,652,902)   (4,247,984) 2,587,605 1,439,439
Net assets applicable to common shares at the            
beginning of period 299,625,121 310,278,023   100,600,468 98,012,863 96,573,424
Net assets applicable to common shares at the            
end of period $341,803,795 $299,625,121   $96,352,484 $100,600,468 $98,012,863

 

See accompanying notes to financial statements.

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Statement of Cash Flows

Year Ended February 28, 2022

  NAC NKX
Cash Flows from Operating Activities:    
Net Increase (Decrease) in Net Assets Applicable to Common Shares from Operations $ (26,980,800) $ (8,370,288)
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 (454,824,400) (120,531,844)
Proceeds from sales and maturities of investments 445,515,656 114,229,666
Taxes paid (42,788) (5,974)
Amortization (Accretion) of premiums and discounts, net 16,576,693 2,901,395
Amortization of deferred offering costs 196,998 303,635
(Increase) Decrease in:    
Receivable for interest 2,208,398 41,633
Receivable for investments sold 14,130,149 2,378,087
Other assets (83,007) (25,335)
Increase (Decrease) in:    
Payable for interest (8,855) 183
Investments purchased - regular settlement (18,435,497) (5,693,894)
Accrued management fees (75,433) (25,905)
Accrued Trustees fees 65,286 16,399
Accrued other expenses (124,840) 18,524
Net realized (gain) loss from:    
Investments 2,554,993 (458,904)
Paydowns (2,207,393) (77,862)
Change in net unrealized appreciation (depreciation) of investments 120,601,420 41,296,515
Net cash provided by (used in) operating activities 99,066,580 25,996,031
Cash Flow from Financing Activities:    
Proceeds from borrowings 47,887,760 3,016,568
(Repayments of) borrowings (47,887,760) (3,016,568)
Increase (Decrease) in:    
Cash overdraft (213,387) 4,879,892
Floating rate obligations (4,185,000)
Cash distributions paid to common shareholders (94,668,193) (31,742,394)
Net cash provided by (used in) financing activities (99,066,580) (26,862,502)
Net Increase (Decrease) in Cash and Cash Collateral at Brokers (866,471)
Cash at the beginning of period 866,471
Cash at the end of period $ — $ —
 
Supplemental Disclosure of Cash Flow Information NAC NKX
Cash paid for interest (excluding amortization of offering costs) $ 7,746,029 $ 807,066

 

See accompanying notes to financial statements.

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Financial Highlights

Selected data for a common share outstanding throughout each period:

          Less Distributions        
  Investment Operations to Common Shareholders   Common Share  
                Premium Discount    
                per per    
            From   Share Share    
  Beginning Net Net   From Accumu-   Sold Repur-    
  Common Investment Realized/   Net lated Net   through chased   Ending
  Share Income Unrealized   Investment Realized   Shelf and Ending Share
  NAV (Loss) Gain (Loss) Total Income Gains Total Offering Retired NAV Price
NAC                      
Year Ended 2/28–2/29:                      
2022 $15.91 $0.66 $(0.85) $(0.19) $(0.65) $ — $(0.65) $ — $ — $15.07 $13.71
2021 16.71 0.64 (0.80) (0.16) (0.64) (0.64) 15.91 14.57
2020 14.95 0.65 1.76 2.41 (0.65) (0.65) 16.71 15.09
2019 15.17 0.67 (0.22) 0.45 (0.68) (0.68) 0.01 14.95 13.30
2018 15.31 0.73 (0.10) 0.63 (0.77) (0.77) 15.17 13.49
NKX                      
Year Ended 2/28-2/29:                      
2022 16.48 0.68 (0.85) (0.17) (0.67) (0.67) 15.64 14.15
2021 17.27 0.66 (0.80) (0.14) (0.65) (0.65) 16.48 15.13
2020 15.17 0.63 2.09 2.72 (0.62) (0.62) 17.27 15.53
2019 15.26 0.66 (0.11) 0.55 (0.65) (0.65) 0.01 15.17 13.50
2018 15.35 0.72 (0.04) 0.68 (0.77) (0.77) 15.26 13.97

 

(a)Total Return Based on Common Share NAV is the combination of changes in common share NAV, reinvested dividend income at NAV and reinvested capital gains distributions at NAV, 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 NAV. 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 NAV), and therefore may be different from the price used in the calculation. Total returns are not annualized.

Total Return Based on Common Share Price 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.

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      Common Share Supplemental Data/  
      Ratios Applicable to Common Shares  
Common Share        
Total Returns   Ratios to Average Net Assets(b)  
 
 
  Based Ending      
Based on Net   Net Portfolio
on Share Assets   Investment Turnover
NAV(a) Price(a) (000) Expenses Income (Loss) Rate(c)
 
(1.33)% (1.81)% $2,181,074 1.46% 4.14% 12%
(0.90) 0.88 2,302,711 1.67 4.00 17
16.37 18.54 2,418,423 2.26 4.11 11
3.01 3.79 2,163,282 2.42 4.48 30
4.19 (2.27) 2,201,952 1.97 4.71 14
 
(1.19) (2.44) 742,993 1.51 4.10 9
(0.77) 1.67 783,202 1.72 4.03 8
18.23 19.88 820,662 2.27 3.91 11
3.73 1.45 720,786 2.50 4.34 28
4.42 0.51 728,662 2.24 4.58 14

 

(b) Net Investment Income (Loss) ratios reflect income earned and expenses incurred (as further described below) on assets attributable to preferred shares issued by the Fund, where applicable.
The expense ratios reflect, among other things, all interest expense and other costs related to preferred shares (as described in Note 5 – Fund 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 (as described in Note 4 – Portfolio Securities and Investments in Derivatives), where applicable, as follows:
  Ratios of Interest Expense     Ratios of Interest Expense
  to Average Net Assets Applicable     to Average Net Assets Applicable
  to Common Shares     to Common Shares
 
NAC     NKX  
Year Ended 2/28–2/29:   Year Ended 2/28-2/29:
2022 0.55%   2022 0.49%
2021 0.74   2021 0.74
2020 1.33   2020 1.28
2019 1.45   2019 1.45
2018 1.02   2018 1.20

 

(c)Portfolio Turnover Rate is calculated based on the lesser of long-term purchases or sales (as disclosed in Note 4 – Portfolio Securities and Investments in Derivatives) divided by the average long-term market value during the period.

See accompanying notes to financial statements.

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Financial Highlights (continued)

Selected data for a common share outstanding throughout each period:

          Less Distributions          
  Investment Operations to Common Shareholders   Common Share  
                  Premium Discount    
                  per per    
            From     Share Share    
  Beginning Net Net   From Accumu-     Sold Repur-    
  Common Investment Realized/   Net lated Net   Shelf through chased   Ending
  Share Income Unrealized   Investment Realized   Offering Shelf and Ending Share
  NAV (Loss) Gain (Loss) Total Income Gains Total Cost Offering Retired NAV Price
NCA                        
Year Ended 2/28–2/29:                      
2022 $10.66 $0.31 $(0.35) $(0.04) $(0.30) $ — $(0.30) $ — $ — $ — $10.32 $ 9.53
2021 11.05 0.32 (0.39) (0.07) (0.32) (0.32) 10.66 10.21
2020 10.13 0.34 0.92 1.26 (0.34) (0.34) 11.05 10.45
2019 10.19 0.34 (0.06) 0.28 (0.34) (0.34) —* 10.13 9.42
2018 10.24 0.38 (0.03) 0.35 (0.40) (0.40) —* 10.19 9.55
NXC                        
Year Ended 2/28-2/29:                      
2022(d) 15.83 0.45 (0.65) (0.20) (0.44) (0.04) (0.48) 15.15 14.81
Year Ended 3/31:                        
2021 15.43 0.51 0.41 0.92 (0.52) (0.52) 15.83 16.29
2020 15.21 0.53 0.21 0.74 (0.52) (0.52) 15.43 14.50
2019 15.02 0.50 0.19 0.69 (0.52) (0.52) 0.02 15.21 14.12
2018 15.00 0.57 0.09 0.66 (0.58) (0.06) (0.64) —* 15.02 13.90
2017 15.68 0.60 (0.56) 0.04 (0.62) (0.10) (0.72) 15.00 14.83

 

(a)Total Return Based on Common Share NAV is the combination of changes in common share NAV, reinvested dividend income at NAV and reinvested capital gains distributions at NAV, 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 NAV. 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 NAV), and therefore may be different from the price used in the calculation. Total returns are not annualized.

Total Return Based on Common Share Price 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.

*Rounds to less than $0.01 per share.

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        Common Share Supplemental Data/  
        Ratios Applicable to Common Shares  
Common Share          
Total Returns     Ratios to Average Net Assets  
 
 
 
  Based   Ending      
Based on   Net   Net Portfolio
on Share   Assets   Investment Turnover
NAV(a) Price(a)   (000) Expenses(b) Income (Loss) Rate(c)
 
(0.43)% (3.89)%   $341,804 0.56% 2.85% 6%
(0.62) 0.73   299,625 0.60 2.94 9
12.63 14.67   310,278 0.52 3.22 8
2.82 2.31   284,624 0.62 3.38 38
3.45 (2.72)   286,121 0.56 3.67 23
 
(1.34) (6.27)   96,352 0.35** 3.14** 9
 
6.05 16.13   100,600 0.35 3.26 5
4.86 6.26   98,013 0.36 3.41 10
4.82 5.44   96,573 0.55 3.38 23
4.37 (2.23)   95,357 0.37 3.73 20
0.20 (6.98)   94,310 0.37 3.89 24

 

(b)• The expense ratios reflect, among other things, 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 (as described in Note 4 – Portfolio Securities and Investments in Derivatives), where applicable, as follows:
         
  Ratios of Interest Expense   Ratios of Interest Expense
  to Average Net Assets Applicable   to Average Net Assets Applicable
  to Common Shares     to Common Shares
 
NCA     NXC  
Year Ended 2/28–2/29:   Year Ended 2/28-2/29:  
2022 —%   2022(d) —%**
2021   Year Ended 3/31:  
2020   2021
2019   2020
2018   2019
      2018
      2017

 

(c)Portfolio Turnover Rate is calculated based on the lesser of long-term purchases or sales (as disclosed in Note 4 – Portfolio Securities and Investments in Derivatives) divided by the average long-term market value during the period.
(d)For the eleven months ended February 28, 2022.
**Annualized

See accompanying notes to financial statements.

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Financial Highlights (continued)

               
              MFP
              and VRDP
  MFP Shares at   VRDP Shares   Shares at the
  the End of the Period   at the End of the Period   End of the Period
  Aggregate Asset   Aggregate Asset   Asset Coverage
  Amount Coverage   Amount Coverage   Per $1
  Outstanding Per $100,000   Outstanding Per $100,000   Liquidation
  (000) Share   (000) Share   Preference
NAC              
Year Ended 2/28-2/29:              
2022 $320,000 $270,716   $957,600 $270,716   $2.71
2021 320,000 280,237   957,600 280,237   2.80
2020 320,000 289,294   957,600 289,294   2.89
2019 320,000 269,324   957,600 269,324   2.69
2018 320,000 272,351   957,600 272,351   2.72
 
NKX              
Year Ended 2/28-2/29:              
2022 140,400 271,751   292,200 271,751   2.72
2021 140,400 281,045   292,200 281,045   2.81
2020 140,400 289,705   292,200 289,705   2.90
2019 140,400 266,617   292,200 266,617   2.67
2018 140,400 268,438   292,200 268,438   2.68

 

See accompanying notes to financial statements.

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Notes to
Financial Statements

1. General Information

Fund Information

The funds covered in this report and their corresponding New York Stock Exchange (“NYSE”) symbols are as follows (each a “Fund” and collectively, the “Funds”):

• Nuveen California Quality Municipal Income Fund (NAC)

• Nuveen California AMT-Free Quality Municipal Income Fund (NKX)

• Nuveen California Municipal Value Fund (NCA)

• Nuveen California Select Tax-Free Income Portfolio (NXC)

The Funds are registered under the Investment Company Act of 1940 (the “1940 Act”), as amended, as diversified closed-end management investment companies. NAC, NKX and NXC were organized as Massachusetts business trusts on December 1, 1998, July 29, 2002, and March 30, 1992, respectively. NCA was organized as a Massachusetts business trust on March 8, 2021 (previously organized as a Minnesota trust on July 15, 1987).

Change in Fiscal and Tax Year End for NXC

Effective February 24, 2022, NXC’s fiscal and tax year end changed from March 31 to February 28/29 as approved by the Fund's Board of Trustees (the “Board”). As a result, NXC has prepared an annual report for the period April 1, 2021 through February 28, 2022 (the “eleven months ended February 28, 2022”).

Current Fiscal Period

The end of the reporting period for the Funds is February 28, 2022. The period covered by these Notes to Financial Statements for NAC, NKX and NCA is the fiscal year ended February 28, 2022 and for NXC the eleven months ended February 28, 2022 (the “current fiscal period”).

Investment Adviser and Sub-Adviser

The Funds’ investment adviser is Nuveen Fund Advisors, LLC (the “Adviser”), a subsidiary of Nuveen, LLC (“Nuveen”). Nuveen is the investment management arm of Teachers Insurance and Annuity Association of America (TIAA). The Adviser has overall responsibility for management of the Funds, oversees the management of the Funds’ portfolios, manages the Funds’ business affairs and provides certain clerical, bookkeeping and other administrative services, and, if necessary, asset allocation decisions. The Adviser has entered into sub-advisory agreements with Nuveen Asset Management, LLC (the “Sub-Adviser“), a subsidiary of the Adviser, under which the Sub-Adviser manages the investment portfolios of the Funds.

Fund Reorganization

Effective prior to the opening of business on March 8, 2021, Nuveen California Municipal Value Fund 2 (NCB) (the “Target Fund“) was reorganized into NCA (the “Acquiring Fund“) (the “Reorganization“).

For accounting and performance reporting purposes, the Acquiring Fund is the survivor.

Upon the closing of the Reorganization, the Target Fund transferred its assets to the Acquiring Fund in exchange for common shares of the Acquiring Fund and the assumption by the Acquiring Fund of the liabilities of the Target Fund. The Target Fund was then liquidated, dissolved and terminated in accordance with its Declaration of Trust. Shareholders of the Target Fund became shareholders of the Acquiring Fund. Holders of common shares of the Target Fund received newly issued common shares of the Acquiring Fund, the aggregate net asset value (“NAV”) of which was equal to the aggregate NAV of the common shares of the Target Fund held immediately prior to the Reorganization (including for this purpose fractional Acquiring Fund shares to which shareholders were entitled). Details of the Reorganization are further described in Note 10 – Fund Reorganization.

Developments Regarding the Funds’ Control Share By-Law

On October 5, 2020, the Funds and certain other closed-end funds in the Nuveen fund complex amended their by-laws. Among other things, the amended by-laws included provisions pursuant to which, in summary, a shareholder who obtains beneficial ownership of common shares in a Control Share Acquisition (as defined in the by-laws) shall have the same voting rights as other common shareholders only to the extent authorized by the other disinterested shareholders (the “Control Share By-Law”). On January 14, 2021, a shareholder of certain Nuveen closed-end funds filed a civil complaint in the U.S. District Court for the Southern District of New York (the “District Court”) against certain Nuveen funds and their trustees, seeking a declaration that such funds’ Control Share By-Laws violate the 1940 Act, rescission of such fund’s Control Share By-Laws and a permanent injunction

75

 

 

 

Notes to Financial Statements (continued)

against such funds applying the Control Share By-Laws. On February 18, 2022, the District Court granted judgment in favor of the plaintiff’s claim for rescission of such funds’ Control Share By-Laws and the plaintiff’s declaratory judgment claim, and declared that such funds’ Control Share By-Laws violate Section 18(i) of the 1940 Act. Following review of the judgment of the District Court, on February 22, 2022, the Board amended the Funds’ bylaws to provide that the Funds’ Control Share By-Law shall be of no force and effect for so long as the judgment of the District Court is effective and that if the judgment of the District Court is reversed, overturned, vacated, stayed, or otherwise nullified, the Funds’ Control Share By-Law will be automatically reinstated and apply to any beneficial owner of common shares acquired in a Control Share Acquisition, regardless of whether such Control Share Acquisition occurs before or after such reinstatement, for the duration of the stay or upon issuance of the mandate reversing, overturning, vacating or otherwise nullifying the judgment of the District Court. On February 25, 2022, the Board and the Funds appealed the District Court’s decision to the U.S. Court of Appeals for the Second Circuit.

Other Matters

The outbreak of the novel coronavirus (“COVID-19”) and subsequent global pandemic began significantly impacting the U.S. and global financial markets and economies during the calendar quarter ended March 31, 2020. The worldwide spread of COVID-19 has created significant uncertainty in the global economy. The duration and extent of COVID-19 over the long term cannot be reasonably estimated at this time. The ultimate impact of COVID-19 and the extent to which COVID-19 impacts the Funds’ normal course of business, results of operations, investments, and cash flows will depend on future developments, which are highly uncertain and difficult to predict. Management continues to monitor and evaluate this situation.

2. Significant Accounting Policies

The accompanying financial statements were prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which may require the use of estimates made by management and the evaluation of subsequent events. Actual results may differ from those estimates. Each Fund is an investment company and follows the accounting guidance in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification 946, Financial Services—Investment Companies. The NAV for financial reporting purposes may differ from the NAV for processing security and common share transactions. The NAV for financial reporting purposes includes security and common share transactions through the date of the report. Total return is computed based on the NAV used for processing security and common share transactions. The following is a summary of the significant accounting policies consistently followed by the Funds.

Compensation

The Funds pay no compensation directly to those of its 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 has adopted a deferred compensation plan for independent trustees that enables 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.

Custodian Fee Credit

As an alternative to overnight investments, each Fund has an arrangement with its custodian bank, State Street Bank and Trust Company, (the “Custodian”) whereby certain custodian fees and expenses are reduced by net credits earned on each Fund’s cash on deposit with the bank. Credits for cash balances may be offset by charges for any days on which a Fund overdraws its account at the Custodian. The amount of custodian fee credit earned by a Fund is recognized on the Statement of Operations as a component of “Custodian expenses, net.” During the current reporting period, the custodian fee credit earned by each Fund was as follows:

         
  NAC NKX NCA NXC
Custodian Fee Credit $1,033 $126 $124 $3

 

Distributions to Common Shareholders

Distributions to common shareholders are recorded on the ex-dividend date. The amount, character and timing of distributions are determined in accordance with federal income tax regulations, which may differ from U.S. GAAP.

Indemnifications

Under the Funds’ organizational documents, their officers and 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.

Investments and Investment Income

Securities transactions are accounted for as of the trade date for financial reporting purposes. Realized gains and losses on securities transactions are based upon the specific identification method. Investment income is comprised of interest income, which is recorded on an accrual basis and includes

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the accretion of discounts and the amortization of premiums for financial reporting purposes. Investment income also reflects payment-in-kind (“PIK”) interest and paydown gains and losses, if any. PIK interest represents income received in the form of securities in lieu of cash.

Netting Agreements

In the ordinary course of business, the Funds may enter into transactions subject to enforceable International Swaps and Derivatives Association, Inc. (ISDA) master agreements or other similar arrangements (“netting agreements”). Generally, the right to offset in netting agreements allows each Fund to offset certain securities and derivatives with a specific counterparty, when applicable, as well as any collateral received or delivered to that counterparty based on the terms of the agreements. Generally, each Fund manages its cash collateral and securities collateral on a counterparty basis.

The Funds’ investments subject to netting agreements as of the end of the reporting period, if any, are further described in Note 4 – Portfolio Securities and Investments in Derivatives.

New Accounting Pronouncements and Rule Issuances

Reference Rate Reform

In March 2020, FASB issued Accounting Standards Update (“ASU”) 2020-04, Reference Rate Reform: Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The main objective of the new guidance is to provide relief to companies that will be impacted by the expected change in benchmark interest rates, when participating banks will no longer be required to submit London Interbank Offered Rate (LIBOR) quotes by the UK Financial Conduct Authority (FCA). The new guidance allows companies to, provided the only change to existing contracts are a change to an approved benchmark interest rate, account for modifications as a continuance of the existing contract without additional analysis. For new and existing contracts, the Funds may elect to apply the amendments as of March 12, 2020 through December 31, 2022. Management has not yet elected to apply the amendments, is continuously evaluating the potential effect a discontinuation of LIBOR could have on the Funds’ investments and has currently determined that it is unlikely the ASU’s adoption will have a significant impact on the Funds’ financial statements and various filings.

Securities and Exchange Commission (“SEC”) Adopts New Rules to Modernize Fund Valuation Framework

In December 2020, the SEC voted to adopt a new rule governing fund valuation practices. New Rule 2a-5 under the 1940 Act establishes requirements for determining fair value in good faith for purposes of the 1940 Act. Rule 2a-5 will permit fund boards to designate certain parties to perform fair value determinations, subject to board oversight and certain other conditions. Rule 2a-5 also defines when market quotations are “readily available” for purposes of Section 2(a)(41) of the 1940 Act, which requires a fund to fair value a security when market quotations are not readily available. The SEC also adopted new Rule 31a-4 under the 1940 Act, which sets forth the recordkeeping requirements associated with fair value determinations. Finally, the SEC is rescinding previously issued guidance on related issues, including the role of a board in determining fair value and the accounting and auditing of fund investments. Rule 2a-5 and Rule 31a-4 became effective on March 8, 2021, with a compliance date of September 8, 2022. A fund may voluntarily comply with the rules after the effective date, and in advance of the compliance date, under certain conditions. Management is currently assessing the impact of these provisions on the Funds’ financial statements.

3. Investment Valuation and Fair Value Measurements

The Funds’ investments in securities are recorded at their estimated fair value utilizing valuation methods approved by the Board. Fair value is defined as the price that would be received upon selling an investment or transferring a liability in an orderly transaction to an independent buyer in the principal or most advantageous market for the investment. U.S. GAAP establishes the three-tier hierarchy which 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 management’s assumptions about the assumptions market participants would use in pricing the asset or liability. Unobservable inputs are based on the best information available in the circumstances. The following is a summary of the three-tiered hierarchy of valuation input levels.

Level 1 – Inputs are unadjusted and prices are determined using quoted prices in active markets for identical securities.
Level 2 – Prices are determined using other significant observable inputs (including quoted prices for similar securities, interest rates, credit spreads, etc.).
Level 3 – Prices are determined using significant unobservable inputs (including management’s assumptions in determining the fair value of investments).

A description of the valuation techniques applied to the Funds’ major classifications of assets and liabilities measured at fair value follows:

Prices of fixed-income securities are generally provided by an independent pricing service (“pricing service”) approved by the Board. 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

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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 the Adviser. These securities are generally classified as Level 2.

Any portfolio security or derivative for which market quotations are not readily available or for which the above valuation procedures are deemed not to reflect fair value are valued at fair value, as determined in good faith using procedures approved by the Board. 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 such 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. To the extent the inputs are observable and timely, the values would be classified as Level 2 of the fair value hierarchy; otherwise they would be classified as Level 3.

The following table summarizes the market value of the Funds’ investments as of the end of the reporting period, based on the inputs used to value them:

         
NAC Level 1 Level 2 Level 3 Total
Long-Term Investments*:        
Municipal Bonds $ — $3,418,657,559 $3,042,713** $3,421,700,272
NKX        
Long-Term Investments*:        
Municipal Bonds $ — $1,186,257,033 $ 390,697** $1,186,647,730
NCA        
Long-Term Investments*:        
Municipal Bonds $ — $ 340,409,908 $ — $ 340,409,908
NXC        
Long-Term Investments*:        
Municipal Bonds $ — $ 94,479,224 $ — $ 94,479,224

 

* Refer to the Fund’s Portfolio of Investments for industry classifications.

** Refer to the Fund’s Portfolio of Investments for securities classified as Level 3.

The Funds hold liabilities in floating rate obligations and preferred shares, where applicable, which are not reflected in the tables above. The fair values of the Funds’ liabilities for floating rate obligations approximate their liquidation values. Floating rate obligations are generally classified as Level 2 and further described in Note 4 - Portfolio Securities and Investments in Derivatives. The fair values of the Funds’ liabilities for preferred shares approximate their liquidation preference. Preferred shares are generally classified as Level 2 and further described in Note 5 - Fund Shares.

4. Portfolio Securities and Investments in Derivatives

Portfolio Securities

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 (referred to as an “Underlying Bond”), typically with a fixed interest rate, into a special purpose tender option bond (“TOB”) trust (referred to as the “TOB Trust”) created by or at the direction of one or more Funds. In turn, the TOB Trust issues (a) floating rate certificates (referred to as “Floaters”), in face amounts equal to some fraction of the Underlying Bond’s par amount or market value, and (b) an inverse floating rate certificate (referred to as an “Inverse Floater”) that represents all remaining or residual interest in the TOB Trust. Floaters typically pay short-term tax-exempt interest rates to third parties who are also provided a right to tender their certificate and receive its par value, which may be paid from the proceeds of a remarketing of the Floaters, by a loan to the TOB Trust from a third party liquidity provider (“Liquidity Provider”), or by the sale of assets from the TOB Trust. The Inverse Floater is issued to a long term investor, such as one or more of the Funds. The income received by the Inverse Floater holder varies inversely with the short-term rate paid to holders of the Floaters, 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 value of an Inverse Floater 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 Floaters, and because the Inverse Floater essentially bears the risk of loss (and possible gain) of the greater face value of the Underlying Bond.

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The Inverse Floater held by a Fund gives the Fund the right to (a) cause the holders of the Floaters to tender their certificates at par (or slightly more than par in certain circumstances), and (b) have the trustee of the TOB Trust (the “Trustee”) transfer the Underlying Bond held by the TOB Trust to the Fund, thereby collapsing the TOB Trust.

The Fund may acquire an Inverse Floater in a transaction where it (a) transfers an Underlying Bond that it owns to a TOB Trust created by a third party or (b) transfers an Underlying Bond that it owns, or that it has purchased in a secondary market transaction for the purpose of creating an Inverse Floater, to a TOB Trust created at its direction, and in return receives the Inverse Floater of the TOB Trust (referred to as a “self-deposited Inverse Floater”). A Fund may also purchase an Inverse Floater in a secondary market transaction from a third party creator of the TOB Trust without first owning the Underlying Bond (referred to as an “externally-deposited Inverse Floater”).

An investment in a self-deposited Inverse Floater is accounted for as a “financing” transaction (i.e., a secured borrowing). For a self-deposited Inverse Floater, the Underlying Bond deposited into the TOB Trust is identified in the Fund’s Portfolio of Investments as “(UB) – Underlying bond of an inverse floating rate trust reflected as a financing transaction,” with the Fund recognizing as liabilities, labeled “Floating rate obligations” on the Statement of Assets and Liabilities, (a) the liquidation value of Floaters issued by the TOB Trust, and (b) the amount of any borrowings by the TOB Trust from a Liquidity Provider to enable the TOB Trust to purchase outstanding Floaters in lieu of a remarketing. In addition, the Fund recognizes in “Investment Income” the entire earnings of the Underlying Bond, and recognizes (a) the interest paid to the holders of the Floaters or on the TOB Trust’s borrowings, and (b) other expenses related to remarketing, administration, trustee, liquidity and other services to a TOB Trust, as a component of “Interest expense and amortization of offering costs” on the Statement of Operations. Earnings due from the Underlying Bond and interest due to the holders of the Floaters as of the end of the reporting period are recognized as components of “Receivable for interest” and “Payable for interest” on the Statement of Assets and Liabilities, respectively.

In contrast, an investment in an externally-deposited Inverse Floater is accounted for as a purchase of the Inverse Floater and is identified in the Fund’s Portfolio of Investments as “(IF) – Inverse floating rate investment.” For an externally-deposited Inverse Floater, a Fund’s Statement of Assets and Liabilities recognizes the Inverse Floater and not the Underlying Bond as an asset, and the Fund does not recognize the Floaters, or any related borrowings from a Liquidity Provider, as a liability. Additionally, the Fund reflects in “Investment Income” only the net amount of earnings on the Inverse Floater (net of the interest paid to the holders of the Floaters or the Liquidity Provider as lender, and the expenses of the Trust), and does not show the amount of that interest paid or the expenses of the TOB Trust as described above as interest expense on the Statement of Operations.

Fees paid upon the creation of a TOB Trust for self-deposited Inverse Floaters and externally-deposited Inverse Floaters are recognized as part of the cost basis of the Inverse Floater and are capitalized over the term of the TOB Trust.

As of the end of the reporting period, the aggregate value of Floaters issued by each Fund’s TOB Trust for self-deposited Inverse Floaters and externally-deposited Inverse Floaters was as follows:

Floating Rate Obligations Outstanding NAC NKX NCA NXC
Floating rate obligations: self-deposited Inverse Floaters $ — $20,975,000 $ — $ —
Floating rate obligations: externally-deposited Inverse Floaters 26,250,000 11,250,000
Total $26,250,000 $32,225,000 $ — $ —

 

During the current fiscal period, the average amount of Floaters (including any borrowings from a Liquidity Provider) outstanding, and the average annual interest rate and fees related to self-deposited Inverse Floaters, were as follows:

Self-Deposited Inverse Floaters NAC NKX NCA NXC
Average floating rate obligations outstanding $4,185,000 $20,975,000 $ — $ —
Average annual interest rate and fees 0.52% 0.58% —% —%

 

TOB Trusts are supported by a liquidity facility provided by a Liquidity Provider pursuant to which the Liquidity Provider agrees, in the event that Floaters are (a) tendered to the Trustee for remarketing and the remarketing does not occur, or (b) subject to mandatory tender pursuant to the terms of the TOB Trust agreement, to either purchase Floaters or to provide the Trustee with an advance from a loan facility to fund the purchase of Floaters by the TOB Trust. In certain circumstances, the Liquidity Provider may otherwise elect to have the Trustee sell the Underlying Bond to retire the Floaters that were tendered and not remarketed prior to providing such a loan. In these circumstances, the Liquidity Provider remains obligated to provide a loan to the extent that the proceeds of the sale of the Underlying Bond is not sufficient to pay the purchase price of the Floaters.

The size of the commitment under the loan facility for a given TOB Trust is at least equal to the balance of that TOB Trust’s outstanding Floaters plus any accrued interest. In consideration of the loan facility, fee schedules are in place and are charged by the Liquidity Provider(s). Any loans made by the Liquidity Provider will be secured by the purchased Floaters held by the TOB Trust. Interest paid on any outstanding loan balances will be effectively borne by the Fund that owns the Inverse Floaters of the TOB Trust that has incurred the borrowing and may be at a rate that is greater than the rate that would have been paid had the Floaters been successfully remarketed.

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Notes to Financial Statements (continued)

As described above, any amounts outstanding under a liquidity facility are recognized as a component of “Floating rate obligations” on the Statement of Assets and Liabilities by the Fund holding the corresponding Inverse Floaters issued by the borrowing TOB Trust. As of the end of the reporting period, there were no loans outstanding under any such facility for any of the Funds as of the end of the reporting period.

Each Fund may also enter into shortfall and forbearance agreements (sometimes referred to as a “recourse arrangement”) (TOB Trusts involving such agreements are referred to herein as “Recourse Trusts”), under which a Fund agrees to reimburse the Liquidity Provider for the Trust’s Floaters, in certain circumstances, for the amount (if any) by which the liquidation value of the Underlying Bond held by the TOB Trust may fall short of the sum of the liquidation value of the Floaters issued by the TOB Trust plus any amounts borrowed by the TOB Trust from the Liquidity Provider, plus any shortfalls in interest cash flows. Under these agreements, a Fund’s potential exposure to losses related to or on an Inverse Floater may increase beyond the value of the Inverse Floater as a Fund may potentially be liable to fulfill all amounts owed to holders of the Floaters or the Liquidity Provider. Any such shortfall amount in the aggregate is recognized as “Unrealized depreciation on Recourse Trusts” on the Statement of Assets and Liabilities.

As of the end of the reporting period, each Fund’s maximum exposure to the Floaters issued by Recourse Trusts for self-deposited Inverse Floaters and externally-deposited Inverse Floaters was as follows:

         
Floating Rate Obligations – Recourse Trusts NAC NKX NCA NXC
Maximum exposure to Recourse Trusts: self-deposited Inverse Floaters $ — $20,975,000 $ — $ —
Maximum exposure to Recourse Trusts: externally-deposited Inverse Floaters 26,250,000 11,250,000
Total $26,250,000 $32,225,000 $ — $ —

 

Zero Coupon Securities

A zero coupon security does not pay a regular interest coupon to its holders during the life of the security. 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.

Investment Transactions

Long-term purchases and sales (including maturities) during the current fiscal period were as follows:

  NAC NKX NCA NXC
Purchases $454,824,400 $120,531,844 $74,064,584 $8,771,285
Sales and Maturities 445,515,656 114,229,666 19,555,010 9,191,373

 

The Funds may purchase securities on a when-issued or delayed-delivery basis. Securities purchased on a when-issued or delayed-delivery basis may have extended settlement periods; interest income is not accrued until settlement date. Any securities so purchased are subject to market fluctuation during this period. The Funds have earmarked securities in their portfolios with a current value at least equal to the amount of the when-issued/ delayed-delivery purchase commitments. If a Fund has outstanding when-issued/delayed-delivery purchases commitments as of the end of the reporting period, such amounts are recognized on the Statement of Assets and Liabilities.

Investments in Derivatives

In addition to the inverse floating rate securities in which each Fund may invest, which are considered portfolio securities for financial reporting purposes, each Fund is authorized to invest in certain derivative instruments such as futures, options and swap contracts. Each Fund limits its investments in futures, options on futures and swap contracts to the extent necessary for the Adviser to claim the exclusion from registration by the Commodity Futures Trading Commission as a commodity pool operator with respect to the Fund. 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.

Although the Funds are authorized to invest in derivative instruments and may do so in future, they did not make any such investments during the current fiscal period.

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.

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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.

5. Fund Shares

Common Shares

Common Shares Equity Shelf Programs and Offering Costs

NKX has filed a registration statement with the SEC authorizing the Fund to issue additional common shares through one or more equity shelf programs (“Shelf Offering”), which became effective with the SEC during prior fiscal periods.

Under this Shelf Offering, the Fund, subject to market conditions, may raise additional equity capital by issuing additional common shares from time to time in varying amounts and by different offering methods at a net price at or above the Fund’s NAV per common share. In the event the Fund’s Shelf Offering registration statement is no longer current, the Fund may not issue additional common shares until a post-effective amendment to the registration statement has been filed with the SEC.

Additional authorized common shares, common shares sold and offering proceeds, net of offering costs under the Fund’s Shelf Offering during the Fund’s current fiscal period were as follows:

  NKX
  Year Year
  Ended Ended
  2/28/22 2/28/21
Additional authorized common shares 4,100,000* 4,100,000
Common shares sold
Offering proceeds, net of offering cost

 

* Represents additional authorized common shares for the period March 1, 2020 through June 30, 2021.    

 

Costs incurred by the Fund in connection with its initial shelf registration are recorded as a prepaid expense and recognized as “Deferred offering costs” on the Statement of Assets and Liabilities. These costs are amortized pro rata as common shares are sold and are recognized as a component of “Proceeds from shelf offering, net of offering costs” on the Statement of Changes in Net Assets. Any deferred offering costs remaining after the effectiveness of the initial shelf registration will be expensed. Costs incurred by the Fund to keep the shelf registration current are expensed as incurred and recognized as a component of “Other expenses” on the Statement of Operations.

Common Share Transactions

Transactions in common shares for the Funds during the Funds’ current and prior fiscal period, where applicable, were as follows:

               
    NCA       NXC  
          Eleven    
  Year   Year   Months Year Year
  Ended   Ended   Ended Ended Ended
  2/28/22   2/28/21   2/28/22 3/31/21 3/31/20
 
Common shares:              
Issued to shareholders due to reinvestment of distributions   5,684   4,779 4,192 1,980
Issued in the Reorganization 5,011,513    

 

Preferred Shares

MuniFund Preferred Shares

NAC and NKX have issued and have outstanding MuniFund Preferred (“MFP”) Shares, with a $100,000 liquidation preference per share. These MFP Shares were issued via private placement and are not publicly available.

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Notes to Financial Statements (continued)

The Funds are obligated to redeem their MFP Shares by the date as specified in its offering documents (“Term Redemption Date”), unless earlier redeemed by the Funds. MFP Shares are initially issued in a pre-specified mode, however, MFP Shares can be subsequently designated as an alternative mode at a later date at the discretion of the Funds. The modes within MFP Shares detail the dividend mechanics and are described as follows. At a subsequent date, the Funds may establish additional mode structures with the MFP Share.

Variable Rate Remarketed Mode (“VRRM”) – Dividends for MFP Shares within this mode will be established by a remarketing agent; therefore, market value of the MFP Shares is expected to approximate its liquidation preference. Shareholders have the ability to request a best-efforts tender of its shares upon seven days notice. If the remarketing agent is unable to identify an alternative purchaser, the shares will be retained by the shareholder requesting tender and the subsequent dividend rate will increase to its step-up dividend rate. If after one consecutive year of unsuccessful remarketing attempts, the Fund will be required to designate an alternative mode or redeem the shares.

Each Fund will pay a remarketing fee on the aggregate principal amount of all MFP Shares while designated in VRRM. Payments made by the Fund to the remarketing agent are recognized as “Remarketing fees” on the Statement of Operations.

Variable Rate Mode (“VRM”) – Dividends for MFP Shares designated in this mode are based upon a short-term index plus an additional fixed “spread” amount established at the time of issuance or renewal / conversion of its mode. At the end of the period of the mode, the Fund will be required to either extend the term of the mode, designate an alternative mode or redeem the MFP Shares.

The fair value of MFP Shares while in VRM are expected to approximate their liquidation preference so long as the fixed “spread” on the shares remains roughly in line with the “spread” being demanded by investors on instruments having similar terms in the current market. In current market conditions, the Adviser has determined that the fair value of the shares are approximately their liquidation preference, but their fair value could vary if market conditions change materially.

Variable Rate Demand Mode (“VRDM”) – Dividends for MFP Shares designated in this mode will be established by a remarketing agent; therefore, the market value of the MFP Shares is expected to approximate its liquidation preference. While in this mode, shares will have an unconditional liquidity feature that enable its shareholders to require a liquidity provider, which the Fund has entered into a contractual agreement, to purchase shares in the event that the shares are not able to be successfully remarketed. In the event that shares within this mode are unable to be successfully remarketed and are purchased by the liquidity provider, the dividend rate will be the maximum rate which is designed to escalate according to a specified schedule in order to enhance the remarketing agent’s ability to successfully remarket the shares. Each Fund is required to redeem any shares that are still owned by a liquidity provider after six months of continuous, unsuccessful remarketing.

The Fund will pay a liquidity and remarketing fee on the aggregate principal amount of all MFP shares while within VRDM. Payments made by the Fund to the liquidity provider and remarketing agent are recognized as “Liquidity fees” and “Remarketing fees”, respectively, on the Statement Operations.

For financial reporting purposes, the liquidation preference of MFP Shares is recorded as a liability and is recognized as a component of “MuniFund Preferred (“MFP”) Shares, net of deferred offering costs” on the Statement of Assets and Liabilities. Dividends on the MFP shares are treated as interest payments for financial reporting purposes. Unpaid dividends on MFP shares are recognized as a component on “Interest payable” on the Statement of Assets and Liabilities. Dividends accrued on MFP Shares are recognized as a component of “Interest expense and amortization of offering costs” on the Statement of Operations.

Subject to certain conditions, MFP Shares may be redeemed, in whole or in part, at any time at the option of the Fund. The Fund may also be required to redeem certain MFP 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 in all circumstances is equal to the liquidation preference per share plus any accumulated but unpaid dividends.

Costs incurred in connection with each Fund’s offering of MFP Shares were recorded as deferred charges and are amortized over the life of the shares and are recognized as a component of “MuniFund Preferred (“MFP”) Shares, net of deferred offering costs” on the Statement of Assets and Liabilities and “Interest expense and amortization of offering costs” on the Statement of Operations.

As of the end of the reporting period, details of each Fund’s MFP Shares outstanding as of the end of the reporting period, were as follows:

        Liquidation      
        Preference,      
    Shares Liquidation net of deferred Term   Mode
Fund Series Outstanding Preference offering costs Redemption Date Mode Termination Date
NAC A 3,200 $320,000,000 $319,829,781 1/03/28 VRM 1/03/28*
NKX A 1,404 140,400,000 140,009,423 10/01/47 VRRM N/A

 

* Subject to earlier termination by either the Fund or the holder.

 

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The average liquidation preference of MFP Shares outstanding and annualized dividend rate for the Funds during the current fiscal period were as follows:

  NAC NKX
Average liquidation preference of MFP Shares outstanding $320,000,000 $140,400,000
Annualized dividend rate 0.88% 0.31%

 

Variable Rate Demand Preferred Shares

The following Funds have issued and have outstanding Variable Rate Demand Preferred (“VRDP”) Shares, with a $100,000 liquidation preference per share. VRDP Shares are issued via private placement and are not publicly available.

As of the end of the reporting period, NAC and NKX had $954,400,258 and $290,590,541 of VRDP Shares at liquidation preference, net of deferred offering costs, respectively. Further details of the Funds’ VRDP Shares outstanding as of the reporting period, were as follows:

           
    Shares Remarketing Liquidation  
Fund Series Outstanding Fees* Preference Maturity
NAC 1 1,362 0.10% $136,200,000 June 1, 2041
  2 910 N/A 91,000,000 December 1, 2040
  3 498 0.05 49,800,000 March 1, 2040
  4 1,056 0.10 105,600,000 December 1, 2042
  5 1,589 N/A 158,900,000 August 1, 2040
  6 1,581 0.10 158,100,000 August 1, 2040
  7 980 0.10 98,000,000 August 3, 2043
  8 1,600 N/A 160,000,000 November 6, 2026
 
NKX 2 355 0.10% $ 35,500,000 June 1, 2040
  3 427 0.05 42,700,000 March 1, 2040
  4 1,090 0.10 109,000,000 December 1, 2040
  6 1,050 0.10 105,000,000 June 1, 2046

 

* Remarketing fees as a percentage of the aggregate principal amount of all VRDP Shares outstanding for each series.

N/A Not applicable. Series is considered to be Special Rate VRDP and therefore does not pay a remarketing fee.

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 VRDP Shares are not able to be successfully remarketed. Each Fund is required to redeem any VRDP Shares that are still owned by the liquidity provider after six months of continuous, unsuccessful remarketing. Each Fund pays an annual remarketing fee on the aggregate principal amount of all VRDP Shares outstanding. Each Fund’s VRDP Shares have successfully remarketed since issuance.

NAC’s Series 2, Series 5 and Series 8 VRDP Shares are considered to be Special Rate VRDP, which are sold to institutional investors. The special rate period will expire on February 6, 2023, September 1, 2023 and November 6, 2026, for the Fund’s Series 2, 5 and 8 VRDP Shares, respectively. The special rate period for NAC’s Series 8 VRDP Shares is subject to earlier termination by either the Fund or the holder. During the special rate period, the VRDP Shares will not be remarketed by a remarketing agent, be subject to optional or mandatory tender events, or be supported by a liquidity provider and are not subject to remarketing fees or liquidity fees. During the special rate period, VRDP dividends will be set monthly as a floating rate based on the predetermined formula. Following the initial special rate period, Special Rate Period VRDP Shares may transition to traditional VRDP Shares with dividends set at weekly remarketings, and be supported by designated liquidity provider, or the Board may approve a subsequent special rate period.

Dividends on the VRDP Shares (which are treated as interest payments for financial reporting purposes) are set at a rate established by a remarketing agent; therefore, the market value of the VRDP Shares is expected to approximate its liquidation preference. In the event that VRDP shares are unable to be successfully remarketed, the dividend rate will be the maximum rate which 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 preference per share plus any accumulated but unpaid dividends.

The average liquidation preference of VRDP Shares outstanding and annualized dividend rate for each Fund during the current fiscal period were as follows:

     
  NAC NKX
Average liquidation preference of VRDP Shares outstanding $957,600,000 $292,200,000
Annualized dividend rate 0.51% 0.09%

 

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Notes to Financial Statements (continued)

For financial reporting purposes, the liquidation preference of VRDP Shares is a liability and is recognized as a component of “Variable Rate Demand Preferred (“VRDP”) Shares, net of deferred offering costs” 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, when applicable. Dividends accrued on VRDP Shares are recognized as a component of “Interest expense and amortization of offering costs” on the Statement of Operations. Costs incurred by the Funds in connection with their offerings of VRDP Shares were recorded as a deferred charge, which are being amortized over the life of the shares and are recognized as a component of “Variable Rate Demand Preferred (“VRDP”) Shares, net of deferred offering costs” on the Statement of Assets and Liabilities and “Interest expense and amortization of offerings costs” on the Statement of Operations. In addition to interest expense, each Fund also pays a per annum liquidity fee to the liquidity provider, as well as a remarketing fee, which are recognized as “Liquidity fees” and “Remarketing fees,” respectively, on the Statement of Operations.

Preferred Share Transactions

The Funds did not have any transactions in preferred shares during the current and prior fiscal period.

6. Income Tax Information

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 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.

Each Fund intends to satisfy conditions that will enable interest from municipal securities, which is exempt from regular federal and designated state income taxes, and in the case of 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.

Each Fund files income tax returns in U.S. federal and applicable state and local jurisdictions. A Fund’s federal income tax returns are generally subject to examination for a period of three fiscal years after being filed. State and local tax returns may be subject to examination for an additional period of time depending on the jurisdiction. Management has analyzed each Fund’s tax positions taken for all open tax years and has concluded that no provision for income tax is required in the Fund’s financial statements.

Differences between amounts for financial statement and federal income tax purposes are primarily due to timing differences in recognizing gains and losses on investment transactions. Temporary differences do not require reclassification. As of year end, permanent differences that resulted in reclassifications among the components of net assets relate primarily to nondeductible offering costs, nondeductible reorganization expenses, paydowns, reorganization adjustments, taxable market discount and taxes paid. Temporary and permanent differences have no impact on a Fund's net assets.

As of year end, the aggregate cost and net unrealized appreciation/(depreciation) of all investments for federal income tax purposes was as follows:

    Gross Gross Net Unrealized
    Unrealized Unrealized Appreciation
Fund Tax Cost Appreciation (Depreciation) (Depreciation)
NAC $3,185,311,348 $265,346,354 $(28,957,430) $236,388,924
NKX 1,061,053,451 112,693,881 (8,074,545) 104,619,336
NCA 310,195,115 32,642,773 (2,427,980) 30,214,793
NXC 86,757,654 8,315,615 (594,045) 7,721,570

 

For purposes of the disclosure, tax cost generally includes the cost of portfolio investments as well as up-front fees or premiums exchanged on derivatives and any amounts unrealized for income statement reporting but realized income and/or capital gains for tax reporting, if applicable.

As of year end, the components of accumulated earnings on a tax basis were as follows:

  Undistributed Undistributed Undistributed Unrealized   Late-Year Other  
  Tax-Exempt Ordinary Long-Term Appreciation Capital Loss Loss Book-to-Tax  
Fund Income1 Income Capital Gains (Depreciation) Carryforwards Deferrals Differences Total
NAC $7,665,707 $179,255 $ — $236,388,924 $(22,113,894) $ — $(7,888,061) $214,231,931
NKX 4,940,693 14,752 104,619,336 (733,515) (2,684,899) 106,156,367
NCA 978,851 30,214,793 (1,787,880) (811,151) 28,594,613
NXC 277,128 13,809 7,721,570 (254,435) 7,758,072

 

1 Undistributed tax-exempt income (on a tax basis) has not been reduced for the dividend declared on February 1, 2022, and paid on March 1, 2022.

 

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The tax character of distributions paid were as follows:

  February 28, 2022   February 28, 2021
  Tax-   Long-Term   Tax-   Long-Term
  Exempt Ordinary Capital   Exempt Ordinary Capital
Fund Income1 Income Gains   Income Income Gains
NAC $94,119,228 $537,500 $ —   $91,719,591 $404,272 $ —
NKX 31,551,302 287,321   30,553,255 97,360
NCA 9,854,299 57,481   8,933,471

 

  Eleven Months Ended                
  February 28, 2022   March 31, 2021   March 31, 2020
  Tax-   Long-Term   Tax-   Long-Term   Tax-   Long-Term
  Exempt Ordinary Capital   Exempt Ordinary Capital   Exempt Ordinary Capital
Fund Income1 Income Gains   Income Income Gains   Income Income Gains
NXC $2,772,383 $25,481 $251,199   $3,327,984 $3,897 $ —   $3,295,962 $ — $ —

 

1 Each Fund designates these amounts paid during the period as Exempt Interest Dividends.

As of year end, the Funds had capital loss carryforwards, which will not expire:

Fund Short-Term Long-Term Total
NAC $22,113,894 $ — $22,113,894
NKX 733,515 733,515
NCA 1,787,880 1,787,880
NXC

 

As of year end, the Funds utilized the following capital loss carryforwards:

Fund Utilized
NAC $ —
NKX 568,127
NCA 178,863
NXC

 

7. Management Fees and Other Transactions with Affiliates

Management Fees

Each Fund’s management fee compensates the Adviser for overall investment advisory and administrative services and general office facilities. The Sub-Adviser is compensated for its services to the Funds from the management fees paid to the Adviser.

Each Fund’s management fee consists of two components – a fund-level fee, based only on the amount of assets within each individual Fund, and a complex-level fee, based on the aggregate amount of all eligible fund assets managed by the Adviser, and for NCA a gross interest income component. 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.

NCA pays an annual fund-level fee, payable monthly, of 0.15% of the average daily net assets of the Fund, as well as 4.125% of the gross interest income (excluding interest on bonds underlying a “self-deposited inverse floater” trust that is attributed to the Fund over and above the net interest earned on the inverse floater itself) of the Fund.

The annual fund-level fee, payable monthly, for NAC and NKX is calculated according to the following schedules:

Average Daily Managed Assets* NAC NKX
For the first $125 million 0.4500% 0.4500%
For the next $125 million 0.4375 0.4375
For the next $250 million 0.4250 0.4250
For the next $500 million 0.4125 0.4125
For the next $1 billion 0.4000 0.4000
For the next $3 billion 0.3750 0.3750
For managed assets over $5 billion 0.3625 0.3625

 

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Notes to Financial Statements (continued)

The annual fund-level fee, payable monthly, for NXC is calculated according to the following schedule:

  NXC
Average Daily Net Assets* Fund-Level Fee Rate
For the first $125 million 0.1000%
For the next $125 million 0.0875
For the next $250 million 0.0750
For the next $500 million 0.0625
For the next $1 billion 0.0500
For the next $3 billion 0.0250
For managed assets over $5 billion 0.0125

 

The annual complex-level fee, payable monthly, for each Fund is calculated by multiplying the current complex-wide fee rate, determined according to the following schedule by the Funds’ daily managed assets (net assets for NCA and NXC):

Complex-Level Eligible Asset Breakpoint Level* Effective Complex-Level Fee Rate at Breakpoint Level
$55 billion 0.2000%
$56 billion 0.1996
$57 billion 0.1989
$60 billion 0.1961
$63 billion 0.1931
$66 billion 0.1900
$71 billion 0.1851
$76 billion 0.1806
$80 billion 0.1773
$91 billion 0.1691
$125 billion 0.1599
$200 billion 0.1505
$250 billion 0.1469
$300 billion 0.1445

 

*For the complex-level fees, managed assets include closed-end fund assets managed by the Adviser that are attributable to certain types of leverage. For these purposes, 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 open-end and closed-end funds that constitute “eligible assets.” Eligible assets do not include assets attributable to investments in other Nuveen funds or assets in excess of a determined amount (originally $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, but do not include certain assets of certain Nuveen funds that were reorganized into funds advised by an affiliate of the Adviser during the 2019 calendar year. As of February 28, 2022, the complex-level fee for each Fund was 0.1540%.

Other Transactions with Affiliates

Each Fund is permitted to purchase or sell securities from or to certain other funds or accounts managed by the Sub-Adviser (“Affiliated Entity”) under specified conditions outlined in procedures adopted by the Board (“cross-trade”). These procedures have been designed to ensure that any cross-trade of securities by the Fund from or to an Affiliated Entity by virtue of having a common investment adviser (or affiliated investment adviser), common officer and/or common trustee complies with Rule 17a-7 under the 1940 Act. These transactions are effected at the current market price (as provided by an independent pricing service) without incurring broker commissions.

During the current fiscal period, the following Fund engaged in cross-trades pursuant to these procedures as follows:

 

Cross-Trades NAC
Purchases $14,816,700
Sales 17,748,585
Realized gain (loss) (520,588)

 

8. Commitments and Contingencies

In the normal course of business, each Fund enters into a variety of agreements that may expose the Fund to some risk of loss. These could include recourse arrangements for certain TOB Trusts and certain agreements related to preferred shares, which are each described elsewhere in these Notes to Financial Statements. The risk of future loss arising from such agreements, while not quantifiable, is expected to be remote. As of the end of the reporting period, the Funds did not have any unfunded commitments.

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From time to time, the Funds may be a party to certain legal proceedings in the ordinary course of business, including proceedings relating to the enforcement of the Funds’ rights under contracts. As of the end of the reporting period, management has determined that any legal proceeding(s) the Fund are subject to, including those described within this report, are unlikely to have a material impact to any of the Funds’ financial statements.

9. Borrowing Arrangements

Committed Line of Credit

The Funds, along with certain other funds managed by the Adviser (“Participating Funds”), have established a 364-day, $2.635 billion standby credit facility with a group of lenders, under which the Participating Funds may borrow for temporary purposes (other than on-going leveraging for investment purposes). Each Participating Fund is allocated a designated proportion of the facility’s capacity (and its associated costs, as described below) based upon a multi-factor assessment of the likelihood and frequency of its need to draw on the facility, the size of the Fund and its anticipated draws, and the potential importance of such draws to the operations and well-being of the Fund, relative to those of the other Funds. A Fund may effect draws on the facility in excess of its designated capacity if and to the extent that other Participating Funds have undrawn capacity. The credit facility expires in June 2022 unless extended or renewed.

The credit facility has the following terms: 0.15% per annum on unused commitment amounts and a drawn interest rate equal to the higher of (a) OBFR (Overnight Bank Funding Rate) plus 1.20% per annum or (b) the Fed Funds Effective Rate plus 1.20% per annum on amounts borrowed. Prior to June 23, 2021, the drawn interest rate was equal to the higher of (a) one-month LIBOR (London Inter-Bank Offered Rate) plus 1.25% per annum or (b) the Fed Funds rate plus 1.25% per annum on amounts borrowed. The Participating Funds also incurred a 0.05% upfront fee on the increase of the $230 million commitment amount during the reporting period. Interest expense incurred by the Participating Funds, when applicable, is recognized as a component of “Interest expense and amortization of offering costs” on the Statement of Operations. Participating Funds paid administration, legal and arrangement fees, which are recognized as a component of “Interest expense and amortization of offering costs” on the Statement of Operations, and along with commitment fees, have been allocated among such Participating Funds based upon the relative proportions of the facility’s aggregate capacity reserved for them and other factors deemed relevant by the Adviser and the Board of each Participating Fund.

During the current fiscal period, the following Funds utilized this facility. Each Fund’s maximum outstanding balance during the utilization period was as follows:

       
  NAC NKX NXC
Maximum outstanding balance $29,300,000 $3,016,568 $752,441

 

During each Fund’s utilization period(s) during the current fiscal period, the average daily balance outstanding and average annual interest rate on the Borrowings were as follows:

  NAC NKX NXC
Utilization period (days outstanding) 26 3 3
Average daily balance outstanding $19,990,895 $3,016,568 $752,441
Average annual interest rate 1.28% 1.27% 1.27%

 

Borrowings outstanding as of the end of the reporting period, if any, are recognized as “Borrowings” on the Statement of Assets and Liabilities, where applicable.

Inter-Fund Borrowing and Lending

The SEC has granted an exemptive order permitting registered open-end and closed-end Nuveen funds to participate in an inter-fund lending facility whereby the Nuveen funds may directly lend to and borrow money from each other for temporary purposes (e.g., to satisfy redemption requests or when a sale of securities “fails,” resulting in an unanticipated cash shortfall) (the “Inter-Fund Program”). The closed-end Nuveen funds, including the Funds covered by this shareholder report, will participate only as lenders, and not as borrowers, in the Inter-Fund Program because such closed-end funds rarely, if ever, need to borrow cash to meet redemptions. The Inter-Fund Program is subject to a number of conditions, including, among other things, the requirements that (1) no fund may borrow or lend money through the Inter-Fund Program unless it receives a more favorable interest rate than is typically available from a bank or other financial institution for a comparable transaction; (2) no fund may borrow on an unsecured basis through the Inter-Fund Program unless the fund’s outstanding borrowings from all sources immediately after the inter-fund borrowing total 10% or less of its total assets; provided that if the borrowing fund has a secured borrowing outstanding from any other lender, including but not limited to another fund, the inter-fund loan must be secured on at least an equal priority basis with at least an equivalent percentage of collateral to loan value; (3) if a fund’s total outstanding borrowings immediately after an inter-fund borrowing would be greater than 10% of its total assets, the fund may borrow through the interfund loan on a secured basis only; (4) no fund may lend money if the loan would cause its aggregate outstanding loans through the Inter-Fund Program to exceed 15% of its net assets at the time of the loan; (5) a fund’s inter-fund loans to any one fund shall not exceed 5% of the lending fund’s net assets; (6) the duration of inter-fund loans will be limited to the time required to receive payment for securities sold, but in no event more than seven days; and (7) each inter-fund loan may be called on one business day’s notice by a lending fund and may be repaid on any day by a borrowing

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Notes to Financial Statements (continued)

fund. In addition, a Nuveen fund may participate in the Inter-Fund Program only if and to the extent that such participation is consistent with the fund’s investment objective and investment policies. The Board is responsible for overseeing the Inter-Fund Program.

The limitations detailed above and the other conditions of the SEC exemptive order permitting the Inter-Fund Program are designed to minimize the risks associated with Inter-Fund Program for both the lending fund and the borrowing fund. However, no borrowing or lending activity is without risk. When a fund borrows money from another fund, there is a risk that the loan could be called on one day’s notice or not renewed, in which case the fund may have to borrow from a bank at a higher rate or take other actions to payoff such loan if an inter-fund loan is not available from another fund. Any delay in repayment to a lending fund could result in a lost investment opportunity or additional borrowing costs.

During the current reporting period, none of the Funds covered by this shareholder report have entered into any inter-fund loan activity.

10. Fund Reorganization

The Reorganization as previously described in Note 1 — General Information was structured to qualify as a tax-free reorganization under the Internal Revenue Code for federal income tax purposes, and the Target Fund’s shareholders recognized no gain or loss for federal income tax purposes as a result. Prior to the closing of the Reorganization, the Target Fund distributed all of its net investment income and capital gains, if any. Such a distribution may be taxable to the Target Fund’s shareholders for federal income tax purposes.

Investments

The cost, fair value and net unrealized appreciation (depreciation) of the investments (including investments in derivatives) of the Target Fund as of the date of the Reorganization, were as follows:

  NCB
Cost of investments $43,512,135
Fair value of investments 49,986,703
Net unrealized appreciation (depreciation) of investments 6,474,568

 

For financial reporting purposes, assets received and shares issued by the Acquiring Fund were recorded at fair value; however, the cost basis of the investments received from the Target Fund were carried forward to align ongoing reporting of the Acquiring Fund’s realized and unrealized gains and losses with amounts distributable to shareholders for tax purposes.

Common Shares

The common shares outstanding, net assets applicable to common shares and NAV per common share outstanding immediately before and after the Reorganization were as follows:

Target Fund – Prior to Reorganization NCB
Common shares outstanding 3,302,961
Net assets applicable to common shares $53,540,962
NAV per common share outstanding $16.21
Acquiring Fund – Prior to Reorganization NCA
Common shares outstanding 28,096,683
Net assets applicable to common shares $300,172,911
NAV per common share outstanding $10.68
Acquiring Fund – Post Reorganization NCA
Common shares outstanding 33,108,196
Net assets applicable to common shares $353,713,873
NAV per common share outstanding $10.68

 

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Pro Forma Results of Operations (Unaudited)

The beginning of the Target Fund’s current fiscal period was March 1, 2021. Assuming the Reorganization had been completed on March 1, 2021, the beginning of the Acquiring Fund’s current fiscal period, the pro forma results of operations for the current fiscal period, are as follows:

Acquiring Fund – Pro Forma Results from Operations NCA
Net investment income (loss) $ 10,163,426
Net realized and unrealized gains (losses) (11,142,777)
Change in net assets resulting from operations (979,351)

 

Because the combined investment portfolios for the Reorganization has been managed as a single integrated portfolio since the Reorganization was completed, it is not practicable to separate the amounts of revenue and earnings of the Target Fund that have been included in the Statement of Operations for the Acquiring Fund since the Reorganization was consummated.

Cost and Expenses

In connection with the Reorganization, the Acquiring Fund incurred certain associated costs and expenses. Such amounts were included as components of “Accrued other expenses” on the Statement of Assets and Liabilities and “Reorganization expenses” on the Statement of Operations.

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Shareholder Update (Unaudited)

CURRENT INVESTMENT OBJECTIVES, INVESTMENT POLICIES AND PRINCIPAL RISKS OF THE FUNDS

NUVEEN CALIFORNIA QUALITY MUNICIPAL VALUE FUND (NAC)

Investment Objectives

The Fund’s investment objectives are to provide current income exempt from regular federal and California income tax and to enhance portfolio value relative to the municipal bond market by investing in tax-exempt municipal bonds that the Fund’s investment adviser believes are underrated or undervalued or that represent municipal market sectors that are undervalued.

Investment Policies

As a fundamental policy, under normal circumstances, the Fund will invest at least 80% of its Assets (as defined below) in municipal securities and other related investments, that pay interest exempt from federal and California income taxes.

The Fund will primarily invest in municipal securities with long-term maturities in order to maintain a weighted average maturity of at least 15 years, but the average weighted maturity of obligations held by the Fund may be shortened, depending on market conditions.

“Assets” mean the net assets of the Fund plus the amount of any borrowings for investment purposes. “Managed Assets” mean the total assets of the Fund, minus the sum of its accrued liabilities (other than Fund liabilities incurred for the express purpose of creating leverage). Total assets for this purpose shall include assets attributable to the Fund’s use of leverage (whether or not those assets are reflected in the Fund’s financial statements for purposes of generally accepted accounting principles), and derivatives will be valued at their market value.

Under normal circumstances:

The Fund will invest at least 80% of its Managed Assets in investment grade securities that, at the time of investment, are rated within the four highest grades (Baa or BBB or better) by at least one nationally recognized statistical rating organization (an “NRSRO”) or are unrated but judged to be of comparable quality by the Fund’s investment adviser and/or the Fund’s sub-adviser.
The Fund may invest up to 20% of its Managed Assets in municipal securities that at the time of investment are rated below investment grade or are unrated but judged to be of comparable quality by the Fund’s investment adviser and/or the Fund’s sub-adviser.
No more than 10% of the Fund’s Managed Assets may be invested in municipal securities rated below B3/B- or that are unrated but judged to be of comparable quality by the Fund’s investment adviser and/or the Fund’s sub-adviser.
The Fund may invest up to 20% of its Managed Assets in municipal securities that pay interest that is taxable under the federal alternative minimum tax.
The Fund may invest up to 15% of its Managed Assets in inverse floating rate securities
The Fund may invest 25% or more of its total assets in municipal securities in the same economic sector.
The Fund may invest up to 10% of its total assets in securities of other open- or closed-end investment companies (including exchange-traded funds (“ETFs”) that invest primarily in municipal securities of the types in which the Fund may invest directly.
The Fund may invest in distressed securities but may not invest in the securities of an issuer which, at the time of investment, is in default on its obligations to pay principal or interest thereon when due or that is involved in a bankruptcy proceeding (i.e., rated below C-, at the time of investment); provided, however, that the Fund’s investment adviser and/or the Fund’s sub-adviser may determine that it is in the best interest of shareholders in pursuing a workout arrangement with issuers of defaulted securities to make loans to the defaulted issuer or another party, or purchase a debt, equity or other interest from the defaulted issuer or another party, or take other related or similar steps involving the investment of additional monies, but only if that issuer’s securities are already held by the Fund.

The foregoing policies apply only at the time of any new investment.

Approving Changes in Investment Policies

The Board of Trustees of the Fund may change the policies described above without a shareholder vote. However, the Fund’s policy of investing at least 80% of its Assets in municipal securities and other related investments that pay interest exempt from federal and California income taxes, may not be changed without the approval of the holders of a majority of the outstanding common shares and preferred shares voting together as a single class, and the approval of the holders of a majority of the outstanding preferred shares, voting separately as a single class. A “majority of the outstanding”

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shares means (i) 67% or more of the shares present at a meeting, if the holders of more than 50% of the shares are present or represented by proxy or (ii) more than 50% of the shares, whichever is less.

Additionally, with respect to the Fund’s policy of investing at least 80% of its Managed Assets in investment grade securities that, at the time of investment, are rated within the four highest grades (Baa or BBB or better) by at least one NRSRO or are unrated but judged to be of comparable quality by the Fund’s investment adviser and/or the Fund’s sub-adviser, such policy may not be changed without 60 days’ prior notice to shareholders.

Portfolio Contents

The Fund generally invests in municipal securities. Municipal securities include municipal bonds, notes, securities issued to finance and refinance public projects, certificates of participation, variable rate demand obligations, lease obligations, municipal notes, pre-refunded municipal bonds, private activity bonds, securities issued by tender option bond trusts (“TOB trusts”), including inverse floating rate securities, and other forms of municipal bonds and securities, and other related instruments that create exposure to municipal bonds, notes and securities that provide for the payment of interest income that is exempt from regular U.S. federal income tax and California person income taxes.

Municipal securities are debt obligations generally issued by states, cities and local authorities and certain possessions and territories of the United States (such as Puerto Rico and Guam) to finance or refinance public purpose projects such as roads, schools, and water supply systems.

The Fund may also invest in municipal securities that pay interest that is taxable under the federal alternative minimum tax applicable to noncorporate taxpayers (“AMT Bonds”). AMT Bonds may trigger adverse tax consequences for Fund shareholders who are subject to the federal alternative minimum tax.

The municipal securities in which the Fund invests are generally issued by the State of California, a municipality in California, or a political subdivision or agency or instrumentality of such state or municipality, and pay interest that, in the opinion of bond counsel to the issuer (or on the basis of other authority believed by the investment adviser to be reliable), is exempt from both regular federal income taxes and California personal income tax, although the interest may be subject to the federal alternative minimum tax.

The Fund may invest in municipal securities that represent lease obligations and certificates of participation in such leases. A municipal lease is an obligation in the form of a lease or installment purchase that is issued by a state or local government to acquire equipment and facilities. Income from such obligations generally is exempt from state and local taxes in the state of issuance. A certificate of participation represents an undivided interest in an unmanaged pool of municipal leases, an installment purchase agreement or other instruments. The certificates typically are issued by a municipal agency, a trust or other entity that has received an assignment of the payments to be made by the state or political subdivision under such leases or installment purchase agreements. Such certificates provide the Fund with the right to a pro rata undivided interest in the underlying municipal securities. In addition, such participations generally provide the Fund with the right to demand payment, on not more than seven days’ notice, of all or any part of the Fund’s participation interest in the underlying municipal securities, plus accrued interest.

The Fund may invest in municipal notes. Municipal securities in the form of notes generally are used to provide for short-term capital needs, in anticipation of an issuer’s receipt of other revenues or financing, and typically have maturities of up to three years. Such instruments may include tax anticipation notes, revenue anticipation notes, bond anticipation notes, tax and revenue anticipation notes and construction loan notes. Tax anticipation notes are issued to finance the working capital needs of governments. Generally, they are issued in anticipation of various tax revenues, such as income, sales, property, use and business taxes, and are payable from these specific future taxes. Revenue anticipation notes are issued in expectation of receipt of other kinds of revenue, such as federal revenues available under federal revenue sharing programs. Bond anticipation notes are issued to provide interim financing until long-term bond financing can be arranged. In most cases, the long-term bonds then provide the funds needed for repayment of the bond anticipation notes. Tax and revenue anticipation notes combine the funding sources of both tax anticipation notes and revenue anticipation notes. Construction loan notes are sold to provide construction financing. Mortgage notes insured by the Federal Housing Authority secure these notes; however, the proceeds from the insurance may be less than the economic equivalent of the payment of principal and interest on the mortgage note if there has been a default. The anticipated revenues from taxes, grants or bond financing generally secure the obligations of an issuer of municipal notes.

The Fund may invest in “tobacco settlement bonds.” Tobacco settlement bonds are municipal securities that are secured or payable solely from the collateralization of the proceeds from class action or other litigation against the tobacco industry.

The Fund may invest in pre-refunded municipal securities. The principal of and interest on pre-refunded municipal securities are no longer paid from the original revenue source for the securities. Instead, the source of such payments is typically an escrow fund consisting of U.S. government securities. The assets in the escrow fund are derived from the proceeds of refunding bonds issued by the same issuer as the pre-refunded municipal securities. Issuers of municipal securities use this advance refunding technique to obtain more favorable terms with respect to securities that are not yet subject to call or redemption by the issuer. For example, advance refunding enables an issuer to refinance debt at lower market interest rates, restructure debt to improve cash flow or eliminate restrictive covenants in the indenture or other governing instrument for the pre-refunded municipal securities. However, except for a change in the revenue source from which principal and interest payments are made, the pre-refunded municipal securities remain outstanding on their original terms until they mature or are redeemed by the issuer.

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Shareholder Update (Unaudited) (continued)

The Fund may invest in private activity bonds. Private activity bonds are issued by or on behalf of public authorities to obtain funds to provide privately operated housing facilities, airport, mass transit or port facilities, sewage disposal, solid waste disposal or hazardous waste treatment or disposal facilities and certain local facilities for water supply, gas or electricity. Other types of private activity bonds, the proceeds of which are used for the construction, equipment, repair or improvement of privately operated industrial or commercial facilities, may constitute municipal securities, although the current federal tax laws place substantial limitations on the size of such issues.

The Fund may invest in inverse floating rate securities issued by a TOB trust, the interest rate on which varies inversely with the Securities Industry Financial Markets Association short-term rate, which resets weekly, or a similar short-term rate, and is reduced by the expenses related to the TOB trust. Typically, inverse floating rate securities represent beneficial interests in a special purpose trust (sometimes called a TOB trust) formed by a third party sponsor for the purpose of holding municipal bonds. Inverse floating rate securities may increase or decrease in value at a greater rate than the underlying interest rate on the municipal bond held by the TOB trust, which effectively leverages the Fund’s investment.

The Fund may invest in floating rate securities issued by special purpose trusts. Floating rate securities may take the form of short-term floating rate securities or the option period may be substantially longer. Generally, the interest rate earned will be based upon the market rates for municipal securities with maturities or remarketing provisions that are comparable in duration to the periodic interval of the tender option, which may vary from weekly, to monthly, to extended periods of one year or multiple years. Since the option feature has a shorter term than the final maturity or first call date of the underlying bond deposited in the trust, the Fund as the holder of the floating rate security relies upon the terms of the agreement with the financial institution furnishing the option as well as the credit strength of that institution. As further assurance of liquidity, the terms of the trust provide for a liquidation of the municipal security deposited in the trust and the application of the proceeds to pay off the floating rate security. The trusts that are organized to issue both short-term floating rate securities and inverse floaters generally include liquidation triggers to protect the investor in the floating rate security.

The Fund may invest in municipal securities issued by special taxing districts. Special taxing districts are organized to plan and finance infrastructure developments to induce residential, commercial and industrial growth and redevelopment. The bond financing methods such as tax increment finance, tax assessment, special services district and Mello-Roos bonds, are generally payable solely from taxes or other revenues attributable to the specific projects financed by the bonds without recourse to the credit or taxing power of related or overlapping municipalities.

The Fund may invest in zero coupon bonds. A zero coupon bond is a bond that typically does not pay interest for the entire life of the obligation or for an initial period after the issuance of the obligation.

The Fund may buy and sell securities on a when-issued or delayed delivery basis, making payment or taking delivery at a later date, normally within 15 to 45 days of the trade date.

The Fund may utilize structured notes and similar instruments for investment purposes and also for hedging purposes. Structured notes are privately negotiated debt obligations where the principal and/or interest is determined by reference to the performance of a benchmark asset, market or interest rate (an “embedded index”), such as selected securities, an index of securities or specified interest rates, or the differential performance of two assets or markets.

The Fund may invest in illiquid securities (i.e., securities that are not readily marketable), including, but not limited to, restricted securities (securities the disposition of which is restricted under the federal securities laws), securities that may be resold only pursuant to Rule 144A under the Securities Act of 1933, as amended (the “1933 Act”), and repurchase agreements with maturities in excess of seven days.

The Fund may enter into certain derivative instruments in pursuit of its investment objectives, including to seek to enhance return, to hedge certain risks of its investments in municipal securities or as a substitute for a position in the underlying asset. Such instruments include financial futures contracts, swap contracts (including interest rate swaps, credit default swaps and municipal market data rate locks (“MMD Rate Locks”)), options on financial futures, options on swap contracts or other derivative instruments.

The Fund may purchase and sell MMD Rate Locks. An MMD Rate Lock permits the Fund to lock in a specified municipal interest rate for a portion of its portfolio to preserve a return on a particular investment or a portion of its portfolio as a duration management technique or to protect against any increase in the price of securities to be purchased at a later date. By using an MMD Rate Lock, the Fund can create a synthetic long or short position, allowing the Fund to select what the manager believes is an attractive part of the yield curve. The Fund will ordinarily use these transactions as a hedge or for duration or risk management although it is permitted to enter into them to enhance income or gain or to increase the Fund’s yield, for example, during periods of steep interest rate yield curves (i.e., wide differences between short term and long term interest rates).

The Fund may also invest in securities of other open- or closed-end investment companies (including ETFs) that invest primarily in municipal securities of the types in which the Fund may invest directly, to the extent permitted by the Investment Company Act of 1940, as amended (the “1940 Act”), the rules and regulations issued thereunder and applicable exemptive orders issued by the Securities and Exchange Commission (“SEC”).

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Use of Leverage

The Fund uses leverage to pursue its investment objectives. The Fund may use leverage to the extent permitted by the 1940 Act. The Fund may source leverage through a number of methods including the issuance of preferred shares of beneficial interest (“Preferred Shares”) and investments in inverse floating rate securities. The Fund may borrow money (including reverse repurchase agreements) from banks for temporary or emergency purposes, or to repurchase its shares. In addition, the Fund may also use certain derivatives that have the economic effect of leverage by creating additional investment exposure. The amount and sources of leverage will vary depending on market conditions.

Temporary Defensive Periods

During temporary defensive periods (e.g., times when, in the Fund’s investment adviser’s and/or the Fund’s sub-adviser’s opinion, temporary imbalances of supply and demand or other temporary dislocations in the tax-exempt bond market adversely affect the price at which long-term or intermediate-term municipal securities are available), the Fund may invest up to 100% of its net assets in cash or cash equivalents, short-term investments or municipal bonds and deviate from its investment policies including the Fund’s 80% names rule policy. Also, during these periods, the weighted average maturity of the Fund’s investment portfolio may fall below the effective maturity range of at least 15 years and the Fund may not achieve its investment objectives.

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Shareholder Update (Unaudited) (continued)

NUVEEN CALIFORNIA AMT-FREE QUALITY MUNICIPAL INCOME FUND (NKX)

Investment Objectives

The Fund’s investment objectives are (i) to provide current income exempt from regular federal income tax, the federal alternative minimum tax applicable to individuals and California income tax and (ii) to enhance portfolio value relative to the municipal bond market by investing in tax-exempt municipal securities that the Fund’s investment adviser and/or the Fund’s sub-adviser, believes are underrated or undervalued or that represent municipal market sectors that are undervalued.

Investment Policies

As a fundamental policy, under normal circumstances, the Fund will invest at least 80% of its Assets (as defined below) in municipal securities and other related investments the income from which is exempt from federal and California income taxes.

As a non-fundamental policy, under normal circumstances, the Fund will invest 100% of its Managed Assets (as defined below) in municipal securities and other related investments the income from which is exempt from the federal alternative minimum tax applicable to individuals at the time of purchase.

The Fund generally invests in California municipal securities with intermediate or long-term maturities in order to maintain an average effective maturity of 15 to 30 years, but the average effective maturity of obligations held by the Fund may be shortened or lengthened, depending on market conditions and on an assessment by the Fund’s portfolio manager of which segments of the California municipal securities market offer the most favorable relative investment values and opportunities for tax-exempt income and total return.

“Assets” mean the net assets of the Fund plus the amount of any borrowings for investment purposes. “Managed Assets” mean the total assets of the Fund, minus the sum of its accrued liabilities (other than Fund liabilities incurred for the express purpose of creating leverage). Total assets for this purpose shall include assets attributable to the Fund’s use of leverage (whether or not those assets are reflected in the Fund’s financial statements for purposes of generally accepted accounting principles), and derivatives will be valued at their market value.

Under normal circumstances:

The Fund will invest at least 80% of its Assets in municipal securities and other related investments the income from which is exempt from the federal alternative minimum tax applicable to individuals at the time of purchase.
The Fund will invest at least 80% of its Managed Assets in investment grade municipal securities that, at the time of investment, are rated within the four highest grades (Baa or BBB or better) by at least one NRSRO or are unrated but judged to be of comparable quality by the Fund’s investment adviser and/or the Fund’s sub-adviser.
The Fund may invest up to 20% of its Managed Assets in municipal securities that at the time of investment are rated below investment grade (Ba or BB or lower) or are unrated but judged to be of comparable quality by the Fund’s investment adviser and/or the Fund’s sub-adviser.
The Fund may invest up to 10% of its Managed Assets in municipal securities rated below B3/B- or that are unrated but judged to be of comparable quality by the Fund’s investment adviser and/or the Fund’s sub-adviser.
The Fund may invest in distressed securities but may not invest in the securities of an issuer which, at the time of investment, is in default on its obligations to pay principal or interest thereon when due or that is involved in a bankruptcy proceeding (i.e., rated below C-, at the time of investment); provided, however, that the Fund’s sub-adviser may determine that it is in the best interest of shareholders in pursuing a workout arrangement with issuers of defaulted securities to make loans to the defaulted issuer or another party, or purchase a debt, equity or other interest from the defaulted issuer or another party, or take other related or similar steps involving the investment of additional monies, but only if that issuer’s securities are already held by the Fund.
The Fund may invest up to 10% of its total assets in securities of other open- or closed-end investment companies (including ETFs) that invest primarily in municipal securities of the types in which the Fund may invest directly.
The Fund may invest up to 15% of its Managed Assets in inverse floating rate securities.

The foregoing policies apply only at the time of any new investment.

Approving Changes in Investment Policies

The Board of Trustees of the Fund may change the policies described above without a shareholder vote. However, the Fund’s policy of investing at least 80% of its Assets in municipal securities and other related investments the income from which is exempt from federal and California income taxes, may not be changed without the approval of the holders of a majority of the outstanding common shares and preferred shares voting together as a single class, and the approval of the holders of a majority of the outstanding preferred shares, voting separately as a single class. A “majority of the outstanding” shares means (i) 67% or more of the shares present at a meeting, if the holders of more than 50% of the shares are present or represented by proxy or (ii) more than 50% of the shares, whichever is less.

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Additionally, with respect to the Fund’s policy of investing at least 80% of its Assets in municipal securities and other related investments the income from which is exempt from the federal alternative minimum tax applicable to individuals at the time of purchase, such policy may not be changed without 60 days’ prior notice to shareholders.

Portfolio Contents

The Fund generally invests in municipal securities. Municipal securities include municipal bonds, notes, securities issued to finance and refinance public projects, certificates of participation, variable rate demand obligations, lease obligations, municipal notes, pre-refunded municipal bonds, private activity bonds, securities issued by TOB trusts, including inverse floating rate securities, and other forms of municipal bonds and securities, and other related instruments that create exposure to municipal bonds, notes and securities that provide for the payment of interest income that is exempt from U.S. federal and California income tax.

Municipal securities are debt obligations generally issued by states, cities and local authorities and certain possessions and territories of the United States (such as Puerto Rico and Guam) to finance or refinance public purpose projects such as roads, schools, and water supply systems.

The municipal securities in which the Fund generally invests are issued by the State of California, a municipality in California, or a political subdivision or agency or instrumentality of such state or municipality, and pay interest that, in the opinion of bond counsel to the issuer (or on the basis of other authority believed by the Fund’s sub-adviser to be reliable), is exempt from regular federal and California personal income taxes and is also exempt from the federal alternative minimum tax applicable to individuals.

The Fund may invest in municipal securities that represent lease obligations and certificates of participation in such leases. A municipal lease is an obligation in the form of a lease or installment purchase that is issued by a state or local government to acquire equipment and facilities. Income from such obligations generally is exempt from state and local taxes in the state of issuance. A certificate of participation represents an undivided interest in an unmanaged pool of municipal leases, an installment purchase agreement or other instruments. The certificates typically are issued by a municipal agency, a trust or other entity that has received an assignment of the payments to be made by the state or political subdivision under such leases or installment purchase agreements. Such certificates provide the Fund with the right to a pro rata undivided interest in the underlying municipal securities. In addition, such participations generally provide the Fund with the right to demand payment, on not more than seven days’ notice, of all or any part of the Fund’s participation interest in the underlying municipal securities, plus accrued interest.

The Fund may invest in municipal notes. Municipal securities in the form of notes generally are used to provide for short-term capital needs, in anticipation of an issuer’s receipt of other revenues or financing, and typically have maturities of up to three years. Such instruments may include tax anticipation notes, revenue anticipation notes, bond anticipation notes, tax and revenue anticipation notes and construction loan notes. Tax anticipation notes are issued to finance the working capital needs of governments. Generally, they are issued in anticipation of various tax revenues, such as income, sales, property, use and business taxes, and are payable from these specific future taxes. Revenue anticipation notes are issued in expectation of receipt of other kinds of revenue, such as federal revenues available under federal revenue sharing programs. Bond anticipation notes are issued to provide interim financing until long-term bond financing can be arranged. In most cases, the long-term bonds then provide the funds needed for repayment of the bond anticipation notes. Tax and revenue anticipation notes combine the funding sources of both tax anticipation notes and revenue anticipation notes. Construction loan notes are sold to provide construction financing. Mortgage notes insured by the Federal Housing Authority secure these notes; however, the proceeds from the insurance may be less than the economic equivalent of the payment of principal and interest on the mortgage note if there has been a default. The anticipated revenues from taxes, grants or bond financing generally secure the obligations of an issuer of municipal notes.

The Fund may invest in “tobacco settlement bonds.” Tobacco settlement bonds are municipal securities that are secured or payable solely from the collateralization of the proceeds from class action or other litigation against the tobacco industry.

The Fund may invest in pre-refunded municipal securities. The principal of and interest on pre-refunded municipal securities are no longer paid from the original revenue source for the securities. Instead, the source of such payments is typically an escrow fund consisting of U.S. government securities. The assets in the escrow fund are derived from the proceeds of refunding bonds issued by the same issuer as the pre-refunded municipal securities. Issuers of municipal securities use this advance refunding technique to obtain more favorable terms with respect to securities that are not yet subject to call or redemption by the issuer. For example, advance refunding enables an issuer to refinance debt at lower market interest rates, restructure debt to improve cash flow or eliminate restrictive covenants in the indenture or other governing instrument for the pre-refunded municipal securities. However, except for a change in the revenue source from which principal and interest payments are made, the pre-refunded municipal securities remain outstanding on their original terms until they mature or are redeemed by the issuer.

The Fund may invest in private activity bonds. Private activity bonds, formerly referred to as industrial development bonds, are issued by or on behalf of public authorities to obtain funds to provide privately operated housing facilities, airport, mass transit or port facilities, sewage disposal, solid waste disposal or hazardous waste treatment or disposal facilities and certain local facilities for water supply, gas or electricity. Other types of private activity bonds, the proceeds of which are used for the construction, equipment, repair or improvement of privately operated industrial or commercial facilities, may constitute municipal securities, although the current federal tax laws place substantial limitations on the size of such issues. The Fund’s distributions

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Shareholder Update (Unaudited) (continued)

of its interest income from private activity bonds may subject certain investors to the federal alternative minimum tax applicable to individuals. However, the Fund will only invest in private activity bonds that are not subject to the federal alternative minimum tax.

The Fund may invest in inverse floating rate securities issued by a TOB trust, the interest rate on which varies inversely with the Securities Industry Financial Markets Association short-term rate, which resets weekly, or a similar short-term rate, and is reduced by the expenses related to the TOB trust. Typically, inverse floating rate securities represent beneficial interests in a special purpose trust (sometimes called a TOB trust) formed by a third party sponsor for the purpose of holding municipal bonds. Inverse floating rate securities may increase or decrease in value at a greater rate than the underlying interest rate on the municipal bond held by the TOB trust, which effectively leverages the Fund’s investment.

The Fund may invest in floating rate securities issued by special purpose trusts. Floating rate securities may take the form of short-term floating rate securities or the option period may be substantially longer. Generally, the interest rate earned will be based upon the market rates for municipal securities with maturities or remarketing provisions that are comparable in duration to the periodic interval of the tender option, which may vary from weekly, to monthly, to extended periods of one year or multiple years. Since the option feature has a shorter term than the final maturity or first call date of the underlying bond deposited in the trust, the Fund as the holder of the floating rate security relies upon the terms of the agreement with the financial institution furnishing the option as well as the credit strength of that institution. As further assurance of liquidity, the terms of the trust provide for a liquidation of the municipal security deposited in the trust and the application of the proceeds to pay off the floating rate security. The trusts that are organized to issue both short-term floating rate securities and inverse floaters generally include liquidation triggers to protect the investor in the floating rate security.

The Fund may invest in municipal securities issued by special taxing districts. Special taxing districts are organized to plan and finance infrastructure developments to induce residential, commercial and industrial growth and redevelopment. The bond financing methods such as tax increment finance, tax assessment, special services district and Mello-Roos bonds, are generally payable solely from taxes or other revenues attributable to the specific projects financed by the bonds without recourse to the credit or taxing power of related or overlapping municipalities.

The Fund may invest in zero coupon bonds. A zero coupon bond is a bond that typically does not pay interest for the entire life of the obligation or for an initial period after the issuance of the obligation.

The Fund may utilize structured notes and similar instruments for investment purposes and also for hedging purposes. Structured notes are privately negotiated debt obligations where the principal and/or interest is determined by reference to the performance of a benchmark asset, market or interest rate (an “embedded index”), such as selected securities, an index of securities or specified interest rates, or the differential performance of two assets or markets.

The Fund may invest in illiquid securities (i.e., securities that are not readily marketable), including, but not limited to, restricted securities (securities the disposition of which is restricted under the federal securities laws), securities that may be resold only pursuant to Rule 144A under the 1933 Act, and repurchase agreements with maturities in excess of seven days.

The Fund may enter into certain derivative instruments in pursuit of its investment objectives, including to seek to enhance return, to hedge certain risks of its investments in municipal securities or as a substitute for a position in the underlying asset. Such instruments include financial futures contracts, swap contracts (including interest rate swaps, credit default swaps and MMD Rate Locks), options on financial futures, options on swap contracts or other derivative instruments.

The Fund may purchase and sell MMD Rate Locks. An MMD Rate Lock permits the Fund to lock in a specified municipal interest rate for a portion of its portfolio to preserve a return on a particular investment or a portion of its portfolio as a duration management technique or to protect against any increase in the price of securities to be purchased at a later date. By using an MMD Rate Lock, the Fund can create a synthetic long or short position, allowing the Fund to select what the manager believes is an attractive part of the yield curve. The Fund will ordinarily use these transactions as a hedge or for duration or risk management although it is permitted to enter into them to enhance income or gain or to increase the Fund’s yield, for example, during periods of steep interest rate yield curves (i.e., wide differences between short term and long term interest rates).

The Fund may also invest in securities of other open- or closed-end investment companies (including ETFs) that invest primarily in municipal securities of the types in which the Fund may invest directly, to the extent permitted by the 1940 Act, the rules and regulations issued thereunder and applicable exemptive orders issued by the SEC. In addition, the Fund may invest a portion of its Managed Assets in pooled investment vehicles (other than investment companies) that invest primarily in municipal securities of the types in which the Fund may invest directly.

Use of Leverage

The Fund uses leverage to pursue its investment objectives. The Fund may use leverage to the extent permitted by the 1940 Act. The Fund may source leverage through a number of methods including the issuance of Preferred Shares and investments in inverse floating rate securities. The Fund may borrow (including reverse repurchase agreements) from banks for temporary or emergency purposes, or to repurchase its shares. In addition, the Fund may also use certain derivatives that have the economic effect of leverage by creating additional investment exposure. The amount and sources of leverage will vary depending on market conditions.

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Temporary Defensive Periods

During temporary defensive periods (e.g., times when, in the Fund’s investment adviser’s and/or the Fund’s sub-adviser’s opinion, temporary imbalances of supply and demand or other temporary dislocations in the tax-exempt bond market adversely affect the price at which long-term or intermediate-term municipal securities are available), the Fund may invest up to 100% of its net assets in cash or cash equivalents, short-term investments or municipal bonds and deviate from its investment policies including the Fund’s 80% names rule policy. Also, during these periods, the weighted average maturity of the Fund’s investment portfolio may fall below the effective maturity range of 15 to 30 years and the Fund may not achieve its investment objectives.

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Shareholder Update (Unaudited) (continued)

NUVEEN CALIFORNIA MUNICIPAL VALUE FUND (NCA)

(formerly known as NUVEEN CALIFORNIA MUNICIPAL VALUE FUND, INC.)

Investment Objective

The Fund’s primary investment objective is to provide current income exempt from regular federal and California income taxes. The Fund’s secondary investment objective is to enhance portfolio value relative to the California municipal bond market by investing in tax-exempt California municipal securities that the Fund’s investment adviser and/or the Fund’s sub-adviser believes are underrated or undervalued or that represent municipal market sectors that are undervalued.

Investment Policies

As a fundamental policy, under normal circumstances, the Fund will invest at least 80% of its Assets (as defined below) in municipal securities and other related investments, the income from which is exempt from regular federal and California income taxes.

The Fund will primarily invest in municipal securities with long-term maturities in order to maintain an effective maturity of at least 15 years, but it may be shortened or lengthened, depending on market conditions.

“Assets” mean the net assets of the Fund plus the amount of any borrowings for investment purposes. “Managed Assets” mean the total assets of the Fund, minus the sum of its accrued liabilities (other than Fund liabilities incurred for the express purpose of creating leverage). Total assets for this purpose shall include assets attributable to the Fund’s use of leverage (whether or not those assets are reflected in the Fund’s financial statements for purposes of generally accepted accounting principles), and derivatives will be valued at their market value.

Under normal circumstances:

The Fund will invest at least 80% of its Managed Assets in municipal securities that, at the time of investment, are rated within the four highest grades (Baa or BBB or better) by at least one NRSRO or are unrated but judged to be of comparable quality by the Fund’s investment adviser and/or the Fund’s sub-adviser. Investment grade securities may include securities that, at the time of investment, are rated below investment grade, so long as at least one NRSRO rates such securities within the four highest grades (such securities are commonly referred to as split-rated securities).
The Fund may invest up to 20% of its Managed Assets in municipal securities that at the time of investment are rated below investment grade or are unrated but judged to be of comparable quality by the Fund’s investment adviser and/or the Fund’s sub-adviser.
No more than 10% of the Fund’s Managed Assets may be invested in municipal securities rated below B3/B- by all NRSROs that rate the security or that are unrated but judged to be of comparable quality by the Fund’s investment adviser and/or the Fund’s sub-adviser.
The Fund may invest up to 20% of its Managed Assets in municipal securities that pay interest that is taxable under the federal alternative minimum tax applicable to individuals.
The Fund may invest up to 15% of its Managed Assets in inverse floating rate securities.
The Fund will not invest more than 25% of its total assets in municipal securities in any one industry.
The Fund may invest up to 10% of its Managed Assets in securities of other open- or closed-end investment companies (including ETFs) that invest primarily in municipal securities of the types in which the Fund may invest directly.
The Fund may invest in distressed securities but may not invest in the securities of an issuer which, at the time of investment, is in default on its obligations to pay principal or interest thereon when due or that is involved in a bankruptcy proceeding (i.e., rated below C-, at the time of investment); provided, however, that the Fund’s investment adviser and/or the Fund’s sub-adviser may determine that it is in the best interest of shareholders in pursuing a workout arrangement with issuers of defaulted securities to make loans to the defaulted issuer or another party, or purchase a debt, equity or other interest from the defaulted issuer or another party, or take other related or similar steps involving the investment of additional monies, but only if that issuer’s securities are already held by the Fund.

The foregoing policies apply only at the time of any new investment.

Approving Changes in Investment Policies

The Board of Trustees of the Fund may change the policies described above without a shareholder vote. However, the Fund’s (i) investment objectives, (ii) policy of investing at least 80% of its Assets in municipal securities and other related investments, the income from which is exempt from regular federal and California income taxes and (iii) policy (as described below) that it will not leverage its capital structure by issuing senior securities such as Preferred Shares or debt instruments, may not be changed without the approval of the holders of a majority of the outstanding common shares and preferred shares voting together as a single class, and the approval of the holders of a majority of the outstanding preferred shares, voting separately

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as a single class. A “majority of the outstanding” shares means (i) 67% or more of the shares present at a meeting, if the holders of more than 50% of the shares are present or represented by proxy or (ii) more than 50% of the shares, whichever is less.

Additionally, with respect to the Fund’s policy of investing at least 80% of its Managed Assets in municipal securities that, at the time of investment, are rated within the four highest grades (Baa or BBB or better) by at least one NRSRO or are unrated but judged to be of comparable quality by the Fund’s investment adviser and/or the Fund’s sub-adviser, such policy may not be changed without 60 days’ prior notice to shareholders.

Portfolio Contents

The Fund generally invests in municipal securities. Municipal securities include municipal bonds, notes, securities issued to finance and refinance public projects, certificates of participation, variable rate demand obligations, lease obligations, municipal notes, pre-refunded municipal bonds, private activity bonds, securities issued by TOB trusts, including inverse floating rate securities, and other forms of municipal bonds and securities, and other related instruments that create exposure to municipal bonds, notes and securities that provide for the payment of interest income that is exempt from regular U.S. federal income tax and California income taxes.

Municipal securities are debt obligations generally issued by states, cities and local authorities and certain possessions and territories of the United States (such as Puerto Rico and Guam) to finance or refinance public purpose projects such as roads, schools, and water supply systems.

The Fund may also invest in AMT Bonds. AMT Bonds may trigger adverse tax consequences for Fund shareholders who are subject to the federal alternative minimum tax.

The municipal securities in which the Fund invests are generally issued by the State of California, a municipality in California, or a political subdivision or agency or instrumentality of such state or municipality, and pay interest that, in the opinion of bond counsel to the issuer (or on the basis of other authority believed by the investment adviser to be reliable), is exempt from both regular federal income taxes and California personal income tax, although the interest may be subject to the federal alternative minimum tax.

The Fund may invest in municipal securities that represent lease obligations and certificates of participation in such leases. A municipal lease is an obligation in the form of a lease or installment purchase that is issued by a state or local government to acquire equipment and facilities. Income from such obligations generally is exempt from state and local taxes in the state of issuance. A certificate of participation represents an undivided interest in an unmanaged pool of municipal leases, an installment purchase agreement or other instruments. The certificates typically are issued by a municipal agency, a trust or other entity that has received an assignment of the payments to be made by the state or political subdivision under such leases or installment purchase agreements. Such certificates provide the Fund with the right to a pro rata undivided interest in the underlying municipal securities. In addition, such participations generally provide the Fund with the right to demand payment, on not more than seven days’ notice, of all or any part of the Fund’s participation interest in the underlying municipal securities, plus accrued interest.

The Fund may invest in municipal notes. Municipal securities in the form of notes generally are used to provide for short-term capital needs, in anticipation of an issuer’s receipt of other revenues or financing, and typically have maturities of up to three years. Such instruments may include tax anticipation notes, revenue anticipation notes, bond anticipation notes, tax and revenue anticipation notes and construction loan notes. Tax anticipation notes are issued to finance the working capital needs of governments. Generally, they are issued in anticipation of various tax revenues, such as income, sales, property, use and business taxes, and are payable from these specific future taxes. Revenue anticipation notes are issued in expectation of receipt of other kinds of revenue, such as federal revenues available under federal revenue sharing programs. Bond anticipation notes are issued to provide interim financing until long-term bond financing can be arranged. In most cases, the long-term bonds then provide the funds needed for repayment of the bond anticipation notes. Tax and revenue anticipation notes combine the funding sources of both tax anticipation notes and revenue anticipation notes. Construction loan notes are sold to provide construction financing. Mortgage notes insured by the Federal Housing Authority secure these notes; however, the proceeds from the insurance may be less than the economic equivalent of the payment of principal and interest on the mortgage note if there has been a default. The anticipated revenues from taxes, grants or bond financing generally secure the obligations of an issuer of municipal notes.

The Fund may invest in “tobacco settlement bonds.” Tobacco settlement bonds are municipal securities that are secured or payable solely from the collateralization of the proceeds from class action or other litigation against the tobacco industry.

The Fund may invest in pre-refunded municipal securities. The principal of and interest on pre-refunded municipal securities are no longer paid from the original revenue source for the securities. Instead, the source of such payments is typically an escrow fund consisting of U.S. government securities. The assets in the escrow fund are derived from the proceeds of refunding bonds issued by the same issuer as the pre-refunded municipal securities. Issuers of municipal securities use this advance refunding technique to obtain more favorable terms with respect to securities that are not yet subject to call or redemption by the issuer. For example, advance refunding enables an issuer to refinance debt at lower market interest rates, restructure debt to improve cash flow or eliminate restrictive covenants in the indenture or other governing instrument for the pre-refunded municipal securities. However, except for a change in the revenue source from which principal and interest payments are made, the pre-refunded municipal securities remain outstanding on their original terms until they mature or are redeemed by the issuer.

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Shareholder Update (Unaudited) (continued)

The Fund may invest in private activity bonds. Private activity bonds are issued by or on behalf of public authorities to obtain funds to provide privately operated housing facilities, airport, mass transit or port facilities, sewage disposal, solid waste disposal or hazardous waste treatment or disposal facilities and certain local facilities for water supply, gas or electricity. Other types of private activity bonds, the proceeds of which are used for the construction, equipment, repair or improvement of privately operated industrial or commercial facilities, may constitute municipal securities, although the current federal tax laws place substantial limitations on the size of such issues.

The Fund may invest in inverse floating rate securities issued by a TOB trust, the interest rate on which varies inversely with the Securities Industry Financial Markets Association short-term rate, which resets weekly, or a similar short-term rate, and is reduced by the expenses related to the TOB trust. Typically, inverse floating rate securities represent beneficial interests in a special purpose trust (sometimes called a TOB trust) formed by a third party sponsor for the purpose of holding municipal bonds. Inverse floating rate securities may increase or decrease in value at a greater rate than the underlying interest rate on the municipal bond held by the TOB trust, which effectively leverages the Fund’s investment.

The Fund may invest in floating rate securities issued by special purpose trusts. Floating rate securities may take the form of short-term floating rate securities or the option period may be substantially longer. Generally, the interest rate earned will be based upon the market rates for municipal securities with maturities or remarketing provisions that are comparable in duration to the periodic interval of the tender option, which may vary from weekly, to monthly, to extended periods of one year or multiple years. Since the option feature has a shorter term than the final maturity or first call date of the underlying bond deposited in the trust, the Fund as the holder of the floating rate security relies upon the terms of the agreement with the financial institution furnishing the option as well as the credit strength of that institution. As further assurance of liquidity, the terms of the trust provide for a liquidation of the municipal security deposited in the trust and the application of the proceeds to pay off the floating rate security. The trusts that are organized to issue both short-term floating rate securities and inverse floaters generally include liquidation triggers to protect the investor in the floating rate security.

The Fund may invest in municipal securities issued by special taxing districts. Special taxing districts are organized to plan and finance infrastructure developments to induce residential, commercial and industrial growth and redevelopment. The bond financing methods such as tax increment finance, tax assessment, special services district and Mello-Roos bonds, are generally payable solely from taxes or other revenues attributable to the specific projects financed by the bonds without recourse to the credit or taxing power of related or overlapping municipalities.

The Fund may invest in zero coupon bonds. A zero coupon bond is a bond that typically does not pay interest for the entire life of the obligation or for an initial period after the issuance of the obligation.

The Fund may buy and sell securities on a when-issued or delayed delivery basis, making payment or taking delivery at a later date, normally within 15 to 45 days of the trade date.

The Fund may utilize structured notes and similar instruments for investment purposes and also for hedging purposes. Structured notes are privately negotiated debt obligations where the principal and/or interest is determined by reference to the performance of a benchmark asset, market or interest rate (an “embedded index”), such as selected securities, an index of securities or specified interest rates, or the differential performance of two assets or markets.

The Fund may invest in illiquid securities (i.e., securities that are not readily marketable), including, but not limited to, restricted securities (securities the disposition of which is restricted under the federal securities laws), securities that may be resold only pursuant to Rule 144A under the 1933 Act, and repurchase agreements with maturities in excess of seven days.

The Fund may enter into certain derivative instruments in pursuit of its investment objectives, including to seek to enhance return, to hedge certain risks of its investments in municipal securities or as a substitute for a position in the underlying asset. Such instruments include financial futures contracts, swap contracts (including interest rate swaps, credit default swaps and MMD Rate Locks), options on financial futures, options on swap contracts or other derivative instruments.

The Fund may purchase and sell MMD Rate Locks. An MMD Rate Lock permits the Fund to lock in a specified municipal interest rate for a portion of its portfolio to preserve a return on a particular investment or a portion of its portfolio as a duration management technique or to protect against any increase in the price of securities to be purchased at a later date. By using an MMD Rate Lock, the Fund can create a synthetic long or short position, allowing the Fund to select what the manager believes is an attractive part of the yield curve. The Fund will ordinarily use these transactions as a hedge or for duration or risk management although it is permitted to enter into them to enhance income or gain or to increase the Fund’s yield, for example, during periods of steep interest rate yield curves (i.e., wide differences between short term and long term interest rates).

The Fund may also invest in securities of other open- or closed-end investment companies (including ETFs) that invest primarily in municipal securities of the types in which the Fund may invest directly, to the extent permitted by the 1940 Act, the rules and regulations issued thereunder and applicable exemptive orders issued by the SEC.

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Use of Leverage

As a fundamental policy, the Fund will not leverage its capital structure by issuing senior securities (as defined under the 1940 Act), such as preferred shares or debt instruments. However, the Fund may borrow (including reverse repurchase agreements) for temporary or emergency purposes and invest in certain instruments, including inverse floating rate securities that have the economic effect of leverage.

Temporary Defensive Periods

During temporary defensive periods (e.g., times when, in the Fund’s investment adviser’s and/or the Fund’s sub-adviser’s opinion, temporary imbalances of supply and demand or other temporary dislocations in the tax-exempt bond market adversely affect the price at which long-term or intermediate-term municipal securities are available), the Fund may invest up to 100% of its net assets in cash or cash equivalents, short-term investments or municipal bonds and deviate from its investment policies including the Fund’s 80% names rule policy. Also, during these periods, the weighted average maturity of the Fund’s investment portfolio may fall below the effective maturity range of at least 15 years and the Fund may not achieve its investment objectives.

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Shareholder Update (Unaudited) (continued)

NUVEEN CALIFORNIA SELECT TAX-FREE INCOME PORTFOLIO (NXC)

Investment Objectives

The Fund’s investment objective is to provide stable dividends exempt from both regular federal and California income taxes, consistent with preservation of capital.

Investment Policies

As a fundamental policy, under normal circumstances, the Fund invests at least 80% of its Assets in municipal securities and other related investments, the income from which are exempt from regular federal and California income tax.

The Fund may invest up to 20% of its Managed Assets in municipal securities that are subject to the federal alternative minimum tax (“AMT Bonds”).

The Fund generally invests in municipal securities with an average effective maturity of approximately 15-30 years, but it may be shortened or lengthened, depending on market conditions and on an assessment by the Fund’s portfolio manager of which segments of the municipal securities market offer the most favorable relative investment values and opportunities for tax-exempt income and total return.

“Assets” mean the net assets of the Fund plus the amount of any borrowings for investment purposes. “Managed Assets” mean the total assets of the Fund, minus the sum of its accrued liabilities (other than Fund liabilities incurred for the express purpose of creating leverage). Total assets for this purpose shall include assets attributable to the Fund’s use of leverage (whether or not those assets are reflected in the Fund’s financial statements for purposes of generally accepted accounting principles), and derivatives will be valued at their market value.

Under normal circumstances:

The Fund will invest at least 80% of its Managed Assets in investment grade securities that, at the time of investment, are rated within the four highest grades (Baa or BBB or better) by at least one NRSRO or are unrated but judged to be of comparable quality by the Fund’s sub-adviser. A security is considered investment grade if it is rated within the four highest letter grades by at least one NRSRO that rate such securities (even if rated lower by another), or if it is unrated but judged to be of comparable quality by the Fund’s sub-adviser.
The Fund may invest up to 20% of its Managed Assets in municipal securities that at the time of investment are rated below investment grade or are unrated but judged to be of comparable quality by the Fund’s investment adviser and/or the Fund’s sub-adviser.
No more than 10% of the Fund’s Managed Assets may be invested in municipal securities rated below B3/B- by all NRSROs that rate the security or that are unrated but judged to be of comparable quality by the Fund’s sub-adviser.
The Fund may invest up to 15% of its Managed Assets in inverse floating rate securities.
The Fund may invest up to 10% of its net assets in securities of other open- or closed-end investment companies (including ETFs) that invest primarily in municipal securities of the types in which the Fund may invest directly.
The Fund will not invest more than 25% of its total assets in municipal securities in any one industry.

The foregoing policies apply only at the time of any new investment.

Approving Changes in Investment Policies

The Board of Trustees of the Fund may change the policies described above without a shareholder vote. However, the Fund’s (i) investment objective and (ii) policy of investing at least at least 80% of its Assets in municipal securities and other related investments, the income from which are exempt from regular federal and California income tax may not be changed without the approval of the holders of a majority of the outstanding common shares and preferred shares voting together as a single class, and the approval of the holders of a majority of the outstanding preferred shares, voting separately as a single class. A “majority of the outstanding” shares means (i) 67% or more of the shares present at a meeting, if the holders of more than 50% of the shares are present or represented by proxy or (ii) more than 50% of the shares, whichever is less.

Portfolio Contents

The Fund generally invests in municipal securities. Municipal securities include municipal bonds, notes, securities issued to finance and refinance public projects, certificates of participation, variable rate demand obligations, lease obligations, municipal notes, pre-refunded municipal bonds, private activity bonds, securities issued by TOB trusts, including inverse floating rate securities, and other forms of municipal bonds and securities, and other related instruments that create exposure to municipal bonds, notes and securities that provide for the payment of interest income that is exempt from regular U.S. federal income tax and California personal income taxes.

Municipal securities are debt obligations generally issued by states, cities and local authorities and certain possessions and territories of the United States (such as Puerto Rico and Guam) to finance or refinance public purpose projects such as roads, schools, and water supply systems.

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The Fund may also invest in AMT Bonds. AMT Bonds may trigger adverse tax consequences for Fund shareholders who are subject to the federal alternative minimum tax.

The municipal securities in which the Fund invests are generally issued by the State of California, a municipality in California, or a political subdivision or agency or instrumentality of such state or municipality, and pay interest that, in the opinion of bond counsel to the issuer (or on the basis of other authority believed by the investment adviser to be reliable), is exempt from both regular federal income taxes and California personal income tax, although the interest may be subject to the federal alternative minimum tax.

The Fund may invest in municipal securities that represent lease obligations and certificates of participation in such leases. A municipal lease is an obligation in the form of a lease or installment purchase that is issued by a state or local government to acquire equipment and facilities. Income from such obligations generally is exempt from state and local taxes in the state of issuance. A certificate of participation represents an undivided interest in an unmanaged pool of municipal leases, an installment purchase agreement or other instruments. The certificates typically are issued by a municipal agency, a trust or other entity that has received an assignment of the payments to be made by the state or political subdivision under such leases or installment purchase agreements. Such certificates provide the Fund with the right to a pro rata undivided interest in the underlying municipal securities. In addition, such participations generally provide the Fund with the right to demand payment, on not more than seven days’ notice, of all or any part of the Fund’s participation interest in the underlying municipal securities, plus accrued interest.

The Fund may invest in municipal notes. Municipal securities in the form of notes generally are used to provide for short-term capital needs, in anticipation of an issuer’s receipt of other revenues or financing, and typically have maturities of up to three years. Such instruments may include tax anticipation notes, revenue anticipation notes, bond anticipation notes, tax and revenue anticipation notes and construction loan notes. Tax anticipation notes are issued to finance the working capital needs of governments. Generally, they are issued in anticipation of various tax revenues, such as income, sales, property, use and business taxes, and are payable from these specific future taxes. Revenue anticipation notes are issued in expectation of receipt of other kinds of revenue, such as federal revenues available under federal revenue sharing programs. Bond anticipation notes are issued to provide interim financing until long-term bond financing can be arranged. In most cases, the long-term bonds then provide the funds needed for repayment of the bond anticipation notes. Tax and revenue anticipation notes combine the funding sources of both tax anticipation notes and revenue anticipation notes. Construction loan notes are sold to provide construction financing. Mortgage notes insured by the Federal Housing Authority secure these notes; however, the proceeds from the insurance may be less than the economic equivalent of the payment of principal and interest on the mortgage note if there has been a default. The anticipated revenues from taxes, grants or bond financing generally secure the obligations of an issuer of municipal notes.

The Fund may invest in “tobacco settlement bonds.” Tobacco settlement bonds are municipal securities that are secured or payable solely from the collateralization of the proceeds from class action or other litigation against the tobacco industry.

The Fund may invest in pre-refunded municipal securities. The principal of and interest on pre-refunded municipal securities are no longer paid from the original revenue source for the securities. Instead, the source of such payments is typically an escrow fund consisting of U.S. government securities. The assets in the escrow fund are derived from the proceeds of refunding bonds issued by the same issuer as the pre-refunded municipal securities. Issuers of municipal securities use this advance refunding technique to obtain more favorable terms with respect to securities that are not yet subject to call or redemption by the issuer. For example, advance refunding enables an issuer to refinance debt at lower market interest rates, restructure debt to improve cash flow or eliminate restrictive covenants in the indenture or other governing instrument for the pre-refunded municipal securities. However, except for a change in the revenue source from which principal and interest payments are made, the pre-refunded municipal securities remain outstanding on their original terms until they mature or are redeemed by the issuer.

The Fund may invest in private activity bonds. Private activity bonds are issued by or on behalf of public authorities to obtain funds to provide privately operated housing facilities, airport, mass transit or port facilities, sewage disposal, solid waste disposal or hazardous waste treatment or disposal facilities and certain local facilities for water supply, gas or electricity. Other types of private activity bonds, the proceeds of which are used for the construction, equipment, repair or improvement of privately operated industrial or commercial facilities, may constitute municipal securities, although the current federal tax laws place substantial limitations on the size of such issues.

The Fund may invest in inverse floating rate securities issued by a TOB trust, the interest rate on which varies inversely with the Securities Industry Financial Markets Association short-term rate, which resets weekly, or a similar short-term rate, and is reduced by the expenses related to the TOB trust. Typically, inverse floating rate securities represent beneficial interests in a special purpose trust (sometimes called a TOB trust) formed by a third party sponsor for the purpose of holding municipal bonds. Inverse floating rate securities may increase or decrease in value at a greater rate than the underlying interest rate on the municipal bond held by the TOB trust, which effectively leverages the Fund’s investment.

The Fund may invest in floating rate securities issued by special purpose trusts. Floating rate securities may take the form of short-term floating rate securities or the option period may be substantially longer. Generally, the interest rate earned will be based upon the market rates for municipal securities with maturities or remarketing provisions that are comparable in duration to the periodic interval of the tender option, which may vary from weekly, to monthly, to extended periods of one year or multiple years. Since the option feature has a shorter term than the final maturity or first call date of the underlying bond deposited in the trust, the Fund as the holder of the floating rate security relies upon the terms of the agreement with the

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financial institution furnishing the option as well as the credit strength of that institution. As further assurance of liquidity, the terms of the trust provide for a liquidation of the municipal security deposited in the trust and the application of the proceeds to pay off the floating rate security. The trusts that are organized to issue both short-term floating rate securities and inverse floaters generally include liquidation triggers to protect the investor in the floating rate security.

The Fund may invest in municipal securities issued by special taxing districts. Special taxing districts are organized to plan and finance infrastructure developments to induce residential, commercial and industrial growth and redevelopment. The bond financing methods such as tax increment finance, tax assessment, special services district and Mello-Roos bonds, are generally payable solely from taxes or other revenues attributable to the specific projects financed by the bonds without recourse to the credit or taxing power of related or overlapping municipalities.

The Fund may invest in zero coupon bonds. A zero coupon bond is a bond that typically does not pay interest for the entire life of the obligation or for an initial period after the issuance of the obligation.

The Fund may buy and sell securities on a when-issued or delayed delivery basis, making payment or taking delivery at a later date, normally within 15 to 45 days of the trade date.

The Fund may utilize structured notes and similar instruments for investment purposes and also for hedging purposes. Structured notes are privately negotiated debt obligations where the principal and/or interest is determined by reference to the performance of a benchmark asset, market or interest rate (an “embedded index”), such as selected securities, an index of securities or specified interest rates, or the differential performance of two assets or markets.

The Fund may invest in illiquid securities (i.e., securities that are not readily marketable), including, but not limited to, restricted securities (securities the disposition of which is restricted under the federal securities laws), securities that may be resold only pursuant to Rule 144A under the 1933 Act, and repurchase agreements with maturities in excess of seven days.

The Fund may enter into certain derivative instruments in pursuit of its investment objective, including to seek to enhance return, to hedge certain risks of its investments in municipal securities or as a substitute for a position in the underlying asset. Such instruments include financial futures contracts, swap contracts (including interest rate swaps, credit default swaps and MMD Rate Locks), options on financial futures, options on swap contracts or other derivative instruments.

The Fund may purchase and sell MMD Rate Locks. An MMD Rate Lock permits the Fund to lock in a specified municipal interest rate for a portion of its portfolio to preserve a return on a particular investment or a portion of its portfolio as a duration management technique or to protect against any increase in the price of securities to be purchased at a later date. By using an MMD Rate Lock, the Fund can create a synthetic long or short position, allowing the Fund to select what the manager believes is an attractive part of the yield curve. The Fund will ordinarily use these transactions as a hedge or for duration or risk management although it is permitted to enter into them to enhance income or gain or to increase the Fund’s yield, for example, during periods of steep interest rate yield curves (i.e., wide differences between short term and long term interest rates).

The Fund may also invest in securities of other open- or closed-end investment companies (including ETFs) that invest primarily in municipal securities of the types in which the Fund may invest directly, to the extent permitted by the 1940 Act, the rules and regulations issued thereunder and applicable exemptive orders issued by the SEC.

Use of Leverage

As a fundamental policy, the Fund will not leverage its capital structure by issuing senior securities such as preferred shares or debt instruments. However, the Fund may borrow for temporary, emergency or other purposes as permitted by the 1940 Act, and invest in certain instruments, including inverse floating rate securities, that have the economic effect of financial leverage.

Temporary Defensive Periods

During temporary defensive periods (e.g., times when, in the Fund’s investment adviser’s and/or the Fund’s sub-adviser’s opinion, temporary imbalances of supply and demand or other temporary dislocations in the tax-exempt bond market adversely affect the price at which long-term or intermediate-term municipal securities are available), the Fund may invest up to 100% of its net assets in cash or cash equivalents, short-term investments or municipal bonds and deviate from its investment policies including the Fund’s 80% names rule policy. Also, during these periods, the weighted average maturity of the Fund’s investment portfolio may fall below the effective maturity range of at least 15-30 years and the Fund may not achieve its investment objective.

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PRINCIPAL RISKS OF THE FUNDS

The factors that are most likely to have a material effect on a particular Fund’s portfolio as a whole are called “principal risks.” Each Fund is subject to the principal risks indicated below, whether through direct investment or derivative positions. Each Fund may be subject to additional risks other than those identified and described below because the types of investments made by a Fund can change over time.

    Nuveen California   Nuveen California
  Nuveen California AMT-Free Nuveen California Select
  Quality Municipal Quality Municipal Municipal Tax-Free
  Income Fund Income Fund Value Fund Income Portfolio
Risk (NAC) (NKX) (NCA) (NXC)
Portfolio Level Risks        
Alternative Minimum Tax Risk` X X X
Below Investment Grade Risk X X X X
Call Risk X X X X
Credit Risk X X X X
Credit Spread Risk X X X X
Deflation Risk X X X X
Derivatives Risk X X X X
Distressed Securities Risk X X X --
Duration Risk X X X X
Economic Sector Risk X X X X
Financial Futures and Options Risk X X X X
Hedging Risk X X X X
Illiquid Investments Risk X X X X
Income Risk X X X X
Inflation Risk X X X X
Insurance Risk X X X X
Interest Rate Risk X X X X
Inverse Floating Rate Securities Risk X X X X
Municipal Securities Market Liquidity Risk X X X X
Municipal Securities Market Risk X X X X
Other Investment Companies Risk X X X X
Puerto Rico Municipal Securities Market Risk X X X X
Reinvestment Risk X X X X
Sector and Industry Risk X X X X
Sector Focus Risk X X X X
Special Considerations Related to California Concentration Risk X X X X
Special Risks Related to Certain Municipal Obligations X X X X
Swap Transactions Risk X X X X
Tax Risk X X X X
Taxability Risk X X X X
Tobacco Settlement Bond Risk X X X X
Unrated Securities Risk X X X X
Valuation Risk X X X X
Zero Coupon Bonds Risk X X X X

 

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Shareholder Update (Unaudited) (continued)

    Nuveen California   Nuveen California
  Nuveen California AMT-Free Nuveen California Select
  Quality Municipal Quality Municipal Municipal Tax-Free
  Income Fund Income Fund Value Fund Income Portfolio
Risk (NAC) (NKX) (NCA) (NXC)
Fund Level and Other Risks        
Anti-Takeover Provisions X X X X
Counterparty Risk X X X X
Cybersecurity Risk X X X X
Economic and Political Events Risk X X X X
Global Economic Risk X X X X
Investment and Market Risk X X X X
Legislation and Regulatory Risk X X X X
Leverage Risk X X
Market Discount from Net Asset Value X X X X
Recent Market Conditions X X X X
Reverse Repurchase Agreement Risk X X X

 

Portfolio Level Risks:

Alternative Minimum Tax Risk. The Fund may invest in AMT Bonds. Therefore, a portion of the Fund’s otherwise exempt-interest dividends may be taxable to those shareholders subject to the federal alternative minimum tax.

Below Investment Grade Risk. Municipal securities of below investment grade quality are regarded as having speculative characteristics with respect to the issuer’s capacity to pay interest and repay principal, and may be subject to higher price volatility and default risk than investment grade municipal securities of comparable terms and duration. Issuers of lower grade municipal securities may be highly leveraged and may not have available to them more traditional methods of financing. The prices of these lower grade securities are typically more sensitive to negative developments, such as a decline in the issuer’s revenues or a general economic downturn. The secondary market for lower rated municipal securities may not be as liquid as the secondary market for more highly rated municipal securities, a factor which may have an adverse effect on the Fund’s ability to dispose of a particular municipal security. If a below investment grade municipal security goes into default, or its issuer enters bankruptcy, it might be difficult to sell that security in a timely manner at a reasonable price.

Call Risk. The Fund may invest in municipal securities that are subject to call risk. Such municipal securities may be redeemed at the option of the issuer, or “called,” before their stated maturity or redemption date. In general, an issuer will call its instruments if they can be refinanced by issuing new instruments that bear a lower interest rate. The Fund is subject to the possibility that during periods of falling interest rates, an issuer will call its high yielding municipal securities. The Fund would then be forced to invest the unanticipated proceeds at lower interest rates, resulting in a decline in the Fund’s income.

Credit Risk. Issuers of municipal securities in which the Fund may invest may default on their obligations to pay principal or interest when due. This non-payment would result in a reduction of income to the Fund, a reduction in the value of a municipal security experiencing non-payment and potentially a decrease in the net asset value (“NAV”) of the Fund. To the extent that the credit rating assigned to a municipal security in the Fund’s portfolio is downgraded, the market price and liquidity of such security may be adversely affected.

Credit Spread Risk. Credit spread risk is the risk that credit spreads (i.e., the difference in yield between securities that is due to differences in their credit quality) may increase when the market believes that municipal securities generally have a greater risk of default. Increasing credit spreads may reduce the market values of the Fund’s securities. Credit spreads often increase more for lower rated and unrated securities than for investment grade securities. In addition, when credit spreads increase, reductions in market value will generally be greater for longer-maturity securities.

Deflation Risk. Deflation risk is the risk that prices throughout the economy decline over time. Deflation may have an adverse effect on the creditworthiness of issuers and may make issuer default more likely, which may result in a decline in the value of the Fund’s portfolio.

Derivatives Risk. The use of derivatives involves additional risks and transaction costs which could leave the Fund in a worse position than if it had not used these instruments. Derivative instruments can be used to acquire or to transfer the risk and returns of a municipal security or other asset without buying or selling the municipal security or asset. These instruments may entail investment exposures that are greater than their cost would suggest. As a result, a small investment in derivatives can result in losses that greatly exceed the original investment. Derivatives can be highly volatile, illiquid and difficult to value. An over-the-counter derivative transaction between the Fund and a counterparty that is not cleared through a central counterparty also involves the risk that a loss may be sustained as a result of the failure of the counterparty to the contract to make required payments. The payment

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obligation for a cleared derivative transaction is guaranteed by a central counterparty, which exposes the Fund to the creditworthiness of the central counterparty.

It is possible that developments in the derivatives market, including changes in government regulation, could adversely impact the Fund’s ability to invest in certain derivatives.

Distressed Securities Risk. The Fund may invest in low-rated securities or securities unrated but judged by the sub-adviser to be of comparable quality. Some or many of these low-rated securities, although not in default, may be “distressed,” meaning that the issuer is experiencing financial difficulties or distress at the time of acquisition. Such securities would present a substantial risk of future default which may cause the Fund to incur losses, including additional expenses, to the extent it is required to seek recovery upon a default in the payment of principal or interest on those securities. In any reorganization or liquidation proceeding relating to a portfolio security, the Fund may lose its entire investment or may be required to accept cash or securities with a value less than its original investment. Distressed securities may be subject to restrictions on resale.

Duration Risk. Duration is the sensitivity, expressed in years, of the price of a fixed-income security to changes in the general level of interest rates (or yields). Securities with longer durations tend to be more sensitive to interest rate (or yield) changes, which typically corresponds to increased volatility and risk, than securities with shorter durations. For example, if a security or portfolio has a duration of three years and interest rates increase by 1%, then the security or portfolio would decline in value by approximately 3%. Duration differs from maturity in that it considers potential changes to interest rates, and a security’s coupon payments, yield, price and par value and call features, in addition to the amount of time until the security matures. The duration of a security will be expected to change over time with changes in market factors and time to maturity.

Economic Sector Risk. The Fund may invest a significant amount of its total assets in municipal securities in the same economic sector. This may make the Fund more susceptible to adverse economic, political or regulatory occurrences affecting an economic sector. As concentration increases, so does the potential for fluctuation in the value of the Fund’s assets. In addition, the Fund may invest a significant portion of its assets in certain sectors of the municipal securities market, such as health care facilities, private educational facilities, special taxing districts and start-up utility districts, and private activity bonds including industrial development bonds on behalf of transportation companies, whose credit quality and performance may be more susceptible to economic, business, political, regulatory and other developments than other sectors of municipal issuers. If the Fund invests a significant portion of its assets in the sectors noted above, the Fund’s performance may be subject to additional risk and variability.

Financial Futures and Options Transactions Risk. The Fund may use certain transactions for hedging the portfolio’s exposure to credit risk and the risk of increases in interest rates, which could result in poorer overall performance for the Fund. There may be an imperfect correlation between price movements of the futures and options and price movements of the portfolio securities being hedged.

If the Fund engages in futures transactions or in the writing of options on futures, it will be required to maintain initial margin and maintenance margin and may be required to make daily variation margin payments in accordance with applicable rules of the exchanges and the Commodity Futures Trading Commission (“CFTC”). If the Fund purchases a financial futures contract or a call option or writes a put option in order to hedge the anticipated purchase of municipal securities, and if the Fund fails to complete the anticipated purchase transaction, the Fund may have a loss or a gain on the futures or options transaction that will not be offset by price movements in the municipal securities that were the subject of the anticipatory hedge. There can be no assurance that a liquid market will exist at a time when the Fund seeks to close out a derivatives or futures or a futures option position, and the Fund would remain obligated to meet margin requirements until the position is closed.

Hedging Risk. The Fund’s use of derivatives or other transactions to reduce risk involves costs and will be subject to the investment adviser’s and/or the sub-adviser’s ability to predict correctly changes in the relationships of such hedge instruments to the Fund’s portfolio holdings or other factors. No assurance can be given that the investment adviser’s and/or the sub-adviser’s judgment in this respect will be correct, and no assurance can be given that the Fund will enter into hedging or other transactions at times or under circumstances in which it may be advisable to do so. Hedging activities may reduce the Fund’s opportunities for gain by offsetting the positive effects of favorable price movements and may result in net losses.

Illiquid Investments Risk. Illiquid investments are investments that are not readily marketable and may include restricted securities, which are securities that may not be resold unless they have been registered under the 1933 Act or that can be sold in a private transaction pursuant to an available exemption from such registration. Illiquid investments involve the risk that the investments will not be able to be sold at the time desired by the Fund or at prices approximating the value at which the Fund is carrying the investments on its books from time to time.

Income Risk. The Fund’s income could decline due to falling market interest rates. This is because, in a falling interest rate environment, the Fund generally will have to invest the proceeds from maturing portfolio securities in lower-yielding securities.

Inflation Risk. Inflation risk is the risk that the value of assets or income from investments will be worth less in the future as inflation decreases the value of money. As inflation increases, the real value of the common shares and distributions can decline.

Insurance Risk. The Fund may purchase municipal securities that are secured by insurance, bank credit agreements or escrow accounts. The credit quality of the companies that provide such credit enhancements will affect the value of those securities. Certain significant providers of insurance for municipal securities have incurred significant losses as a result of exposure to sub-prime mortgages and other lower credit quality investments. As a result, such losses reduced the insurers’ capital and called into question their continued ability to perform their obligations under such insurance if they

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are called upon to do so in the future. While an insured municipal security will typically be deemed to have the rating of its insurer, if the insurer of a municipal security suffers a downgrade in its credit rating or the market discounts the value of the insurance provided by the insurer, the value of the municipal security would more closely, if not entirely, reflect such rating. In such a case, the value of insurance associated with a municipal security may not add any value. The insurance feature of a municipal security does not guarantee the full payment of principal and interest through the life of an insured obligation, the market value of the insured obligation or the NAV of the common shares represented by such insured obligation.

Interest Rate Risk. Interest rate risk is the risk that municipal securities in the Fund’s portfolio will decline in value because of changes in market interest rates. Generally, when market interest rates rise, the market value of such securities will fall, and vice versa. As interest rates decline, issuers of municipal securities may prepay principal earlier than scheduled, forcing the Fund to reinvest in lower-yielding securities and potentially reducing the Fund’s income. As interest rates increase, slower than expected principal payments may extend the average life of municipal securities, potentially locking in a below-market interest rate and reducing the Fund’s value. In typical market interest rate environments, the prices of longer-term municipal securities generally fluctuate more than prices of shorter-term municipal securities as interest rates change.

Inverse Floating Rate Securities Risk. The Fund may invest in inverse floating rate securities. In general, income on inverse floating rate securities will decrease when short-term interest rates increase and increase when short-term interest rates decrease. Investments in inverse floating rate securities may subject the Fund to the risks of reduced or eliminated interest payments and losses of principal. In addition, inverse floating rate securities may increase or decrease in value at a greater rate than the underlying interest rate, which effectively leverages the Fund’s investment. As a result, the market value of such securities generally will be more volatile than that of fixed rate securities.

The Fund may invest in inverse floating rate securities issued by special purpose trusts that have recourse to the Fund. In such instances, the Fund may be at risk of loss that exceeds its investment in the inverse floating rate securities.

The Fund may be required to sell its inverse floating rate securities at less than favorable prices, or liquidate other Fund portfolio holdings in certain circumstances, including, but not limited to, the following:

If the Fund has a need for cash and the securities in a special purpose trust are not actively trading due to adverse market conditions;
If special purpose trust sponsors (as a collective group or individually) experience financial hardship and consequently seek to terminate their respective outstanding special purpose trusts; and
If the value of an underlying security declines significantly and if additional collateral has not been posted by the Fund.

Municipal Securities Market Liquidity Risk. Inventories of municipal securities held by brokers and dealers have decreased in recent years, lessening their ability to make a market in these securities. This reduction in market making capacity has the potential to decrease the Fund’s ability to buy or sell municipal securities at attractive prices, and increase municipal security price volatility and trading costs, particularly during periods of economic or market stress. In addition, recent federal banking regulations may cause certain dealers to reduce their inventories of municipal securities, which may further decrease the Fund’s ability to buy or sell municipal securities. As a result, the Fund may be forced to accept a lower price to sell a security, to sell other securities to raise cash, or to give up an investment opportunity, any of which could have a negative effect on performance. If the Fund needed to sell large blocks of municipal securities to raise cash to meet its obligations, those sales could further reduce the municipal securities’ prices and hurt performance.

Municipal Securities Market Risk. The amount of public information available about the municipal securities in the Fund’s portfolio is generally less than that for corporate equities or bonds, and the investment performance of the Fund may therefore be more dependent on the analytical abilities of the sub-adviser than if the Fund were a stock fund or taxable bond fund. The secondary market for municipal securities, particularly below investment grade municipal securities, also tends to be less well-developed or liquid than many other securities markets, which may adversely affect the Fund’s ability to sell its municipal securities at attractive prices.

Other Investment Companies Risk. The Fund may invest in the securities of other investment companies, including ETFs. Investing in an investment company exposes the Fund to all of the risks of that investment company’s investments. The Fund, as a holder of the securities of other investment companies, will bear its pro rata portion of the other investment companies’ expenses, including advisory fees. These expenses are in addition to the direct expenses of the Fund’s own operations. As a result, the cost of investing in investment company shares may exceed the costs of investing directly in its underlying investments. In addition, securities of other investment companies may be leveraged. As a result, the Fund may be indirectly exposed to leverage through an investment in such securities and therefore magnify the Fund’s leverage risk.

With respect to ETF’s, an ETF that is based on a specific index may not be able to replicate and maintain exactly the composition and relative weighting of securities in the index. The value of an ETF based on a specific index is subject to change as the values of its respective component assets fluctuate according to market volatility. ETFs typically rely on a limited pool of authorized participants to create and redeem shares, and an active trading market for ETF shares may not develop or be maintained. The market value of shares of ETFs and closed-end funds may differ from their NAV.

Puerto Rico Municipal Securities Market Risk. To the extent that the Fund invests a significant portion of its assets in the securities issued by the Commonwealth of Puerto Rico or its political subdivisions, agencies, instrumentalities, or public corporations (collectively referred to as “Puerto Rico” or

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the “Commonwealth”), it will be disproportionally affected by political, social and economic conditions and developments in the Commonwealth. In addition, economic, political or regulatory changes in that territory could adversely affect the value of the Fund’s investment portfolio.

Puerto Rico currently is experiencing significant fiscal and economic challenges, including substantial debt service obligations, high levels of unemployment, underfunded public retirement systems, and persistent government budget deficits. These challenges may negatively affect the value of the Fund’s investments in Puerto Rican municipal securities. Several major ratings agencies have downgraded the general obligation debt of Puerto Rico to below investment grade and continue to maintain a negative outlook for this debt, which increases the likelihood that the rating will be lowered further. Puerto Rico recently defaulted on its debt by failing to make full payment due on its outstanding bonds, and there can be no assurance that Puerto Rico will be able to satisfy its future debt obligations. Further downgrades or defaults may place additional strain on the Puerto Rico economy and may negatively affect the value, liquidity, and volatility of the Fund’s investments in Puerto Rican municipal securities. Additionally, numerous issuers have entered Title III of the Puerto Rico Oversite, Management and Economic Stability Act (“PROMESA”), which is similar to bankruptcy protection, through which the Commonwealth of Puerto Rico can restructure its debt. However, Puerto Rico’s case is the first ever heard under PROMESA and there is no existing case precedent to guide the proceedings. Accordingly, Puerto Rico’s debt restructuring process could take significantly longer than traditional municipal bankruptcy proceedings. Further, it is not clear whether a debt restructuring process will ultimately be approved or, if so, the extent to which it will apply to Puerto Rico municipal securities sold by an issuer other than the territory. A debt restructuring could reduce the principal amount due, the interest rate, the maturity, and other terms of Puerto Rico municipal securities, which could adversely affect the value of Puerto Rican municipal securities. Legislation that would allow Puerto Rico to restructure its municipal debt obligations, thus increasing the risk that Puerto Rico may never pay off municipal indebtedness, or may pay only a small fraction of the amount owed, could also impact the value of the Fund’s investments in Puerto Rican municipal securities.

These challenges and uncertainties have been exacerbated by multiple hurricanes and the resulting natural disasters that have stuck Puerto Rico since 2017. The full extent of the natural disasters’ impact on Puerto Rico’s economy and foreign investment in Puerto Rico is difficult to estimate.

Reinvestment Risk. Reinvestment risk is the risk that income from the Fund’s portfolio will decline if and when the Fund invests the proceeds from matured, traded or called municipal securities at market interest rates that are below the portfolio’s current earnings rate. A decline in income could affect the common shares’ market price, NAV and/or a common shareholder’s overall returns.

Sector and Industry Risk. Subject to the concentration limits of the Fund’s investment policies and guidelines, a Fund may invest a significant portion of its net assets in certain sectors of the municipal securities market, such as hospitals and other health care facilities, charter schools and other private educational facilities, special taxing districts and start-up utility districts, and private activity bonds including industrial development bonds on behalf of transportation companies such as airline companies, whose credit quality and performance may be more susceptible to economic, business, political, regulatory and other developments than other sectors of municipal issuers. If the Fund invests a significant portion of its net assets in the sectors noted above, the Fund’s performance may be subject to additional risk and variability.

Sector Focus Risk. At times, the Fund may focus its investments (i.e., overweight its investments relative to the overall municipal securities market) in one or more particular sectors, which may subject the Fund to additional risk and variability. Securities issued in the same sector may be similarly affected by economic or market events, making the Fund more vulnerable to unfavorable developments in that sector than funds that invest more broadly. As the percentage of the Fund’s Managed Assets invested in a particular sector increases, so does the potential for fluctuation in the NAV of the Fund’s common shares.

Special Considerations Related to California Concentration Risk. Because the Fund primarily invests in municipal securities from a single state, the State of California, the Fund is more susceptible to political, economic or regulatory factors affecting issuers of California municipal securities. Information regarding the financial condition of the State of California is ordinarily included in various public documents issued thereby, such as the official statements prepared in connection with the issuance of general obligation bonds of the State of California.

Additionally, the State of California is a party to numerous legal proceedings, many of which normally occur in governmental operations. The creditworthiness of obligations issued by local California issuers may be unrelated to the creditworthiness of obligations issued by the State of California, and that there is no obligation on the part of the State of California to make payment on such local obligations in the event of default.

Special Risks Related to Certain Municipal Obligations. Municipal leases and certificates of participation involve special risks not normally associated with general obligations or revenue bonds. Leases and installment purchase or conditional sale contracts (which normally provide for title to the leased asset to pass eventually to the governmental issuer) have evolved as a means for governmental issuers to acquire property and equipment without meeting the constitutional and statutory requirements for the issuance of debt. The debt issuance limitations are deemed to be inapplicable because of the inclusion in many leases or contracts of “non-appropriation” clauses that relieve the governmental issuer of any obligation to make future payments under the lease or contract unless money is appropriated for such purpose by the appropriate legislative body. In addition, such leases or contracts may be subject to the temporary abatement of payments in the event that the governmental issuer is prevented from maintaining occupancy of the leased premises or utilizing the leased equipment. Although the obligations may be secured by the leased equipment or facilities, the disposition of the property in the event of non-appropriation or foreclosure might prove difficult, time consuming and costly, and may result in a delay in recovering

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Shareholder Update (Unaudited) (continued)

or the failure to fully recover the Fund’s original investment. In the event of non-appropriation, the issuer would be in default and taking ownership of the assets may be a remedy available to the Fund, although the Fund does not anticipate that such a remedy would normally be pursued.

Certificates of participation involve the same risks as the underlying municipal leases. In addition, the Fund may be dependent upon the municipal authority issuing the certificates of participation to exercise remedies with respect to the underlying securities. Certificates of participation also entail a risk of default or bankruptcy, both of the issuer of the municipal lease and also the municipal agency issuing the certificate of participation.

Swap Transactions Risk. The Fund may enter into debt-related derivative instruments such as credit default swap contracts and interest rate swaps. Like most derivative instruments, the use of swaps is a highly specialized activity that involves investment techniques and risks different from those associated with ordinary portfolio securities transactions. In addition, the use of swaps requires an understanding by the adviser and/or the sub-adviser of not only the referenced asset, rate or index, but also of the swap itself. If the investment adviser and/or the sub-adviser is incorrect in its forecasts of default risks, market spreads or other applicable factors or events, the investment performance of the Fund would diminish compared with what it would have been if these techniques were not used.

Tax Risk. The value of the Fund’s investments and its NAV may be adversely affected by changes in tax rates, rules and policies. Because interest income from municipal securities is normally not subject to regular federal income taxation, the attractiveness of municipal securities in relation to other investment alternatives is affected by changes in federal income tax rates or changes in the tax exempt status of interest income from municipal securities. Additionally, the Fund is not a suitable investment for individual retirement accounts, for other tax exempt or tax-deferred accounts, for investors who are not sensitive to the federal income tax consequences of their investments.

Taxability Risk. The Fund will invest in municipal securities in reliance at the time of purchase on an opinion of bond counsel to the issuer that the interest paid on those securities will be excludable from gross income for regular federal income tax purposes, and the sub-adviser will not independently verify that opinion. Subsequent to the Fund’s acquisition of such a municipal security, however, the security may be determined to pay, or to have paid, taxable income. As a result, the treatment of dividends previously paid or to be paid by the Fund as “exempt-interest dividends” could be adversely affected, subjecting the Fund’s shareholders to increased federal income tax liabilities. Certain other investments made by the Fund, including derivatives transactions, may result in the receipt of taxable income or gains by the Fund.

Tobacco Settlement Bond Risk. The Fund may invest in tobacco settlement bonds. Tobacco settlement bonds are municipal securities that are backed solely by expected revenues to be derived from lawsuits involving tobacco related deaths and illnesses which were settled between certain states and American tobacco companies. Tobacco settlement bonds are secured by an issuing state’s proportionate share in the Master Settlement Agreement, an agreement between 46 states and nearly all of the U.S. tobacco manufacturers (the “MSA”). Under the terms of the MSA, the actual amount of future settlement payments by tobacco-manufacturers is dependent on many factors, including, among other things, reduced cigarette consumption. Payments made by tobacco manufacturers could be negatively impacted if the decrease in tobacco consumption is significantly greater than the forecasted decline.

Unrated Securities Risk. The Fund may purchase securities that are not rated by any rating organization. The investment adviser may, after assessing such securities’ credit quality, internally assign ratings to certain of those securities in categories similar to those of rating organizations. Some unrated securities may not have an active trading market or may be difficult to value, which means the Fund might have difficulty selling them promptly at an acceptable price. To the extent that the Fund invests in unrated securities, the Fund’s ability to achieve its investment objectives will be more dependent on the investment adviser’s credit analysis than would be the case when the Fund invests in rated securities.

Valuation Risk. The municipal securities in which the Fund invests typically are valued by a pricing service utilizing a range of market-based inputs and assumptions, including readily available market quotations obtained from broker-dealers making markets in such instruments, cash flows and transactions for comparable instruments. There is no assurance that the Fund will be able to sell a portfolio security at the price established by the pricing service, which could result in a loss to the Fund. Pricing services generally price municipal securities assuming orderly transactions of an institutional “round lot” size, but some trades may occur in smaller, “odd lot” sizes, often at lower prices than institutional round lot trades. Different pricing services may incorporate different assumptions and inputs into their valuation methodologies, potentially resulting in different values for the same securities. As a result, if the Fund were to change pricing services, or if the Fund’s pricing service were to change its valuation methodology, there could be a material impact, either positive or negative, on the Fund’s NAV.

Zero Coupon Bonds Risk. Because interest on zero coupon bonds is not paid on a current basis, the values of zero coupon bonds will be more volatile in response to interest rate changes than the values of bonds that distribute income regularly. Although zero coupon bonds generate income for accounting purposes, they do not produce cash flow, and thus the Fund could be forced to liquidate securities at an inopportune time in order to generate cash to distribute to shareholders as required by tax laws.

Fund Level and Other Risks:

Anti-Takeover Provisions. The Fund’s organizational documents include provisions that could limit the ability of other entities or persons to acquire control of the Fund or convert the Fund to open-end status. Further, the Fund’s by-laws provide that a shareholder who obtains beneficial ownership of

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common shares in a “Control Share Acquisition” shall have the same voting rights as other common shares only to the extent authorized by shareholders. Although the application of the "Control Share Acquisition" provisions has currently been suspended, these provisions could have the effect of depriving the common shareholders of opportunities to sell their common shares at a premium over the then-current market price of the common shares.

Counterparty Risk. Changes in the credit quality of the companies that serve as the Fund’s counterparties with respect to derivatives or other transactions supported by another party’s credit will affect the value of those instruments. Certain entities that have served as counterparties in the markets for these transactions have incurred or may incur in the future significant financial hardships including bankruptcy and losses as a result of exposure to sub-prime mortgages and other lower-quality credit investments. As a result, such hardships have reduced these entities’ capital and called into question their continued ability to perform their obligations under such transactions. By using such derivatives or other transactions, the Fund assumes the risk that its counterparties could experience similar financial hardships. In the event of the insolvency of a counterparty, the Fund may sustain losses or be unable to liquidate a derivatives position.

Cybersecurity Risk. The Fund and its service providers are susceptible to operational and information security risk resulting from cyber incidents. Cyber incidents refer to both intentional attacks and unintentional events including: processing errors, human errors, technical errors including computer glitches and system malfunctions, inadequate or failed internal or external processes, market-wide technical-related disruptions, unauthorized access to digital systems (through “hacking” or malicious software coding), computer viruses, and cyber-attacks which shut down, disable, slow or otherwise disrupt operations, business processes or website access or functionality (including denial of service attacks). Cyber incidents could adversely impact the Fund and cause the Fund to incur financial loss and expense, as well as face exposure to regulatory penalties, reputational damage, and additional compliance costs associated with corrective measures. In addition, substantial costs may be incurred in order to prevent any cyber incidents in the future. Furthermore, the Fund cannot control the cybersecurity plans and systems put in place by its service providers or any other third parties whose operations may affect the Fund.

Economic and Political Events Risk. The Fund may be more sensitive to adverse economic, business or political developments if it invests a substantial portion of its assets in the municipal securities of similar projects (such as those relating to the education, health care, housing, transportation, or utilities industries), industrial development bonds, or in particular types of municipal securities (such as general obligation bonds, private activity bonds or moral obligation bonds). Such developments may adversely affect a specific industry or local political and economic conditions, and thus may lead to declines in the creditworthiness and value of such municipal securities.

Global Economic Risk. National and regional economies and financial markets are becoming increasingly interconnected, which increases the possibilities that conditions in one country, region or market might adversely impact issuers in a different country, region or market. Changes in legal, political, regulatory, tax and economic conditions may cause fluctuations in markets and securities prices around the world, which could negatively impact the value of the Fund’s investments. Major economic or political disruptions, particularly in large economies like China’s, may have global negative economic and market repercussions. Additionally, the aftermath of the war in Iraq, instability in Afghanistan, Pakistan, Egypt, Libya, Syria, Russia, Ukraine and the Middle East, and environmental disasters and the spread of infectious illnesses or other public health emergencies, possible terrorist attacks in the United States and around the world, continued tensions between North Korea and the United States and the international community generally, growing social and political discord in the United States, the European debt crisis, the response of the international community—through economic sanctions and otherwise—further downgrade of U.S. government securities, the change in the U.S. president and the new administration and other similar events may adversely affect the global economy and the markets and issuers in which the Fund invests. Recent examples of such events include the outbreak of a novel coronavirus known as COVID-19 that was first detected in China in December 2019 and heightened concerns regarding North Korea’s nuclear weapons and long-range ballistic missile programs. In addition, Russia’s recent invasion of Ukraine in February 2022 has resulted in sanctions imposed by several nations, such as the United States, United Kingdom, European Union and Canada. The current sanctions and potential further sanctions may negatively impact certain sectors of Russia’s economy, but also may negatively impact the value of the Fund’s investments that do not have direct exposure to Russia. These events could reduce consumer demand or economic output, result in market closure, travel restrictions or quarantines, and generally have a significant impact on the economy. These events could also impair the information technology and other operational systems upon which the Fund’s service providers, including the investment adviser and sub-adviser, rely, and could otherwise disrupt the ability of employees of the Fund’s service providers to perform essential tasks on behalf of the Fund. Governmental and quasi-governmental authorities and regulators throughout the world have in the past responded to major economic disruptions with a variety of significant fiscal and monetary policy changes, including but not limited to, direct capital infusions into companies, new monetary programs and dramatically lower interest rates. An unexpected or quick reversal of these policies, or the ineffectiveness of these policies, could increase volatility in securities markets, which could adversely affect the Fund’s investments.

Investment and Market Risk. An investment in common shares is subject to investment risk, including the possible loss of the entire principal amount that you invest. Common shares frequently trade at a discount to their NAV. An investment in common shares represents an indirect investment in the securities owned by the Fund. 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.

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Legislation and Regulatory Risk. At any time after the date of this report, legislation or additional regulations may be enacted that could negatively affect the assets of the Fund, securities held by the Fund or the issuers of such securities. Fund shareholders may incur increased costs resulting from such legislation or additional regulation. There can be no assurance that future legislation, regulation or deregulation will not have a material adverse effect on the Fund or will not impair the ability of the Fund to achieve its investment objectives.

The SEC’s recently adopted Rule 18f-4 under the 1940 Act governing the use of derivatives by registered investment companies, could affect the nature and extent of derivatives used by the Fund. It is possible that Rule 18f-4 could limit the implementation of the Fund’s use of derivatives, which could have an adverse impact on the Fund.

Leverage Risk. The use of leverage creates special risks for common shareholders, including potential interest rate risks and the likelihood of greater volatility of NAV and market price of, and distributions on, the common shares. The use of leverage in a declining market will likely cause a greater decline in the Fund’s NAV, which may result at a greater decline of the common share price, than if the Fund were not to have used leverage.

The Fund will pay (and common shareholders will bear) any costs and expenses relating to the Fund’s use of leverage, which will result in a reduction in the Fund’s NAV. The investment adviser may, based on its assessment of market conditions and composition of the Fund’s holdings, increase or decrease the amount of leverage. Such changes may impact the Fund’s distributions and the price of the common shares in the secondary market.

The Fund may seek to refinance its leverage over time, in the ordinary course, as current forms of leverage mature or it is otherwise desirable to refinance; however, the form that such leverage will take cannot be predicted at this time. If the Fund is unable to replace existing leverage on comparable terms, its costs of leverage will increase. Accordingly, there is no assurance that the use of leverage may result in a higher yield or return to common shareholders.

The amount of fees paid to the investment adviser and the sub-adviser for investment advisory services will be higher if the Fund uses leverage because the fees will be calculated based on the Fund’s Managed Assets - this may create an incentive for the investment adviser and the sub-adviser to leverage the Fund or increase the Fund’s leverage.

Market Discount from Net Asset Value. Shares of closed-end investment companies like the Fund frequently trade at prices lower than their NAV. This characteristic is a risk separate and distinct from the risk that the Fund’s NAV could decrease as a result of investment activities. Whether investors will realize gains or losses upon the sale of the common shares will depend not upon the Fund’s NAV but entirely upon whether the market price of the common shares at the time of sale is above or below the investor’s purchase price for the common shares. Furthermore, management may have difficulty meeting the Fund’s investment objectives and managing its portfolio when the underlying securities are redeemed or sold during periods of market turmoil and as investors’ perceptions regarding closed-end funds or their underlying investments change. Because the market price of the common shares will be determined by factors such as relative supply of and demand for the common shares in the market, general market and economic circumstances, and other factors beyond the control of the Fund, the Fund cannot predict whether the common shares will trade at, below or above NAV. The common shares are designed primarily for long-term investors, and you should not view the Fund as a vehicle for short-term trading purposes.

Recent Market Conditions. In response to the financial crisis and recent market events, the United States and other governments and the Federal Reserve and certain foreign central banks have taken steps to support financial markets. Policy and legislative changes by the United States government and the Federal Reserve to assist in the ongoing support of financial markets, both domestically and in other countries, are changing many aspects of financial regulation. The impact of these changes on the markets, and the practical implications for market participants, may not be fully known for some time. In some countries where economic conditions are recovering, such countries are nevertheless perceived as still fragile. Withdrawal of government support, failure of efforts in response to the crisis, or investor perception that such efforts are not succeeding, could adversely impact the value and liquidity of certain investments. The severity or duration of adverse economic conditions may also be affected by policy changes made by governments or quasigovernmental organizations, including changes in tax laws and the imposition of trade barriers. The impact of new financial regulation legislation on the markets and the practical implications for market participants may not be fully known for some time. Changes to the Federal Reserve policy, including with respect to certain interest rates, may affect the value, volatility and liquidity of dividend and interest paying securities. Regulatory changes are causing some financial services companies to exit long-standing lines of business, resulting in dislocations for other market participants. The U.S. government has recently reduced the federal corporate income tax rate, and future legislative, regulatory and policy changes may result in more restrictions on international trade, less stringent prudential regulation of certain players in the financial markets, and significant new investments in infrastructure and national defense. Markets may react strongly to expectations about the changes in these policies, which could increase volatility, especially if the markets’ expectations for changes in government policies are not borne out.

Changes in market conditions will not have the same impact on all types of investments. Interest rates have been unusually low in recent years in the United States and abroad but there is consensus that interest rates will increase during the life of the Fund, which could negatively impact the price of debt securities. Because there is little precedent for this situation, it is difficult to predict the impact of a significant rate increase on various markets. In addition, there is a risk that the prices of goods and services in the United States and many foreign economies may decline over time, known as deflation (the opposite of inflation). Deflation may have an adverse effect on stock prices and creditworthiness and may make defaults on debt more likely. If a country’s economy slips into a deflationary pattern, it could last for a prolonged period and may be difficult to reverse.

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On June 23, 2016, the United Kingdom (“UK”) held a referendum on whether to remain a member state of the European Union (“EU”), in which voters favored the UK’s withdrawal from the EU, an event widely referred to as “Brexit” and which triggered a two-year period of negotiations on the terms of withdrawal. The formal notification to the European Council required under Article 50 of the Treaty on EU was made on March 29, 2017, following which the terms of exit were negotiated. On January 31, 2020, the UK formally withdrew from the EU and the two sides entered into a transition phase, where the UK effectively remained in the EU from an economic perspective, but no longer had any political representation in the EU parliament. The transition period concluded on December 31, 2020, and EU law no longer applies in the UK. On December 30, 2020, the UK and EU signed an EU-UK Trade and Cooperation Agreement (“UK/EU Trade Agreement”), which went into effect on January 1, 2021 and sets out the foundation of the economic and legal framework for trade between the UK and EU. As the UK/EU Trade Agreement is a new legal framework, the implementation of the UK/EU Trade Agreement may result in uncertainty in its application and periods of volatility in both the UK and wider European markets. The longer term economic, legal, political and social framework to be put in place between the UK and the EU are unclear at this stage, remain subject to negotiation and are likely to lead to ongoing political and economic uncertainty and periods of exacerbated volatility in both the UK and in wider European markets for some time. The outcomes may cause increased volatility and have a significant adverse impact on world financial markets, other international trade agreements, and the UK and European economies, as well as the broader global economy for some time. Additionally, a number of countries in Europe have suffered terror attacks, and additional attacks may occur in the future. Ukraine has experienced ongoing military conflict, most recently in February 2022 when Russia invaded Ukraine; this conflict may expand and military attacks could occur elsewhere in Europe. Europe has also been struggling with mass migration from the Middle East and Africa. The ultimate effects of these events and other socio-political or geographical issues are not known but could profoundly affect global economies and markets.

The ongoing trade war between China and the United States, including the imposition of tariffs by each country on the other country’s products, has created a tense political environment. These actions may trigger a significant reduction in international trade, the oversupply of certain manufactured goods, substantial price reductions of goods and possible failure of individual companies and/or large segments of China’s export industry, which could have a negative impact on the Fund’s performance. U.S. companies that source material and goods from China and those that make large amounts of sales in China would be particularly vulnerable to an escalation of trade tensions. Uncertainty regarding the outcome of the trade tensions and the potential for a trade war could cause the U.S. dollar to decline against safe haven currencies, such as the Japanese yen and the euro. Events such as these and their consequences are difficult to predict and it is unclear whether further tariffs may be imposed or other escalating actions may be taken in the future.

The impact of these developments in the near- and long-term is unknown and could have additional adverse effects on economies, financial markets and asset valuations around the world.

Reverse Repurchase Agreement Risk. A reverse repurchase agreement, in economic essence, constitutes a securitized borrowing by the Fund from the security purchaser. The Fund may enter into reverse repurchase agreements for the purpose of creating a leveraged investment exposure and, as such, their usage involves essentially the same risks associated with a leveraging strategy generally since the proceeds from these agreements may be invested in additional portfolio securities. Reverse repurchase agreements tend to be short-term in tenor, and there can be no assurances that the purchaser (lender) will commit to extend or “roll” a given agreement upon its agreed-upon repurchase date or an alternative purchaser can be identified on similar terms. Reverse repurchase agreements also involve the risk that the purchaser fails to return the securities as agreed upon, files for bankruptcy or becomes insolvent. The Fund may be restricted from taking normal portfolio actions during such time, could be subject to loss to the extent that the proceeds of the agreement are less than the value of securities subject to the agreement and may experience adverse tax consequences.

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Shareholder Update (Unaudited) (continued)

EFFECTS OF LEVERAGE

The following table is furnished in response to requirements of the SEC. It is designed to illustrate the effects of leverage through the use of senior securities, as that term is defined under Section 18 of the 1940 Act, as well as certain other forms of leverage, such as reverse repurchase agreements and investments in inverse floating rate securities, on common share total return, assuming investment portfolio total returns (consisting of income and changes in the value of investments held in a Fund’s portfolio) of -10%, -5%, 0%, 5% and 10%. The table below reflects each Fund’s (i) continued use of leverage as of February 28, 2022 as a percentage of Managed Assets (including assets attributable to such leverage), (ii) the estimated annual effective interest expense rate payable by the Fund on such instruments (based on actual leverage costs incurred during the fiscal year ended February 28, 2022) as set forth in the table, and (iii) the annual return that the Fund’s portfolio must experience (net of expenses) in order to cover such costs of leverage based on such estimated annual effective interest expense rate. The information below does not reflect any Fund’s use of certain other forms of economic leverage achieved through the use of other instruments or transactions not considered to be senior securities under the 1940 Act, such as certain derivative instruments and investments in inverse floating rate securities.

The numbers are merely estimates, used for illustration. The costs of leverage may vary frequently and may be significantly higher or lower than the estimated rate. The assumed investment portfolio returns in the table below are hypothetical figures and are not necessarily indicative of the investment portfolio returns experienced or expected to be experienced by the Fund. Your actual returns may be greater or less than those appearing below.

  Nuveen California Nuveen California
  Quality Municipal AMT-Free Quality
  Income Fund (NAC) Municipal Income Fund (NKX)
Estimated Leverage as a Percentage of Managed Assets (Including Assets Attributable to Leverage) 37.41% 38.48%
Estimated Annual Effective Leverage Expense Rate Payable by Fund on Leverage 1.00% 0.85%
Annual Return Fund Portfolio Must Experience (net of expenses) to Cover Estimated Annual    
Effective Interest Expense Rate on Leverage 0.37% 0.33%
Common Share Total Return for (10.00)% Assumed Portfolio Total Return -16.57% -16.79%
Common Share Total Return for (5.00)% Assumed Portfolio Total Return -8.58% -8.66%
Common Share Total Return for 0.00% Assumed Portfolio Total Return -0.60% -0.53%
Common Share Total Return for 5.00% Assumed Portfolio Total Return 7.39% 7.60%
Common Share Total Return for 10.00% Assumed Portfolio Total Return 15.38% 15.72%

 

Common Share total return is composed of two elements — the distributions paid by a Fund to holders of common shares (the amount of which is largely determined by the net investment income of the Fund after paying dividend payments on any preferred shares issued by the Fund and expenses on any forms of leverage outstanding) and gains or losses on the value of the securities and other instruments the Fund owns. As required by SEC rules, the table assumes that a Fund is more likely to suffer capital losses than to enjoy capital appreciation. For example, to assume a total return of 0%, a Fund must assume that the income it receives on its investments is entirely offset by losses in the value of those investments. This table reflects hypothetical performance of a Fund’s portfolio and not the actual performance of the Fund’s common shares, the value of which is determined by market forces and other factors. Should a Fund elect to add additional leverage to its portfolio, any benefits of such additional leverage cannot be fully achieved until the proceeds resulting from the use of such leverage have been received by the Fund and invested in accordance with the Fund’s investment objectives and policies. As noted above, a Fund’s willingness to use additional leverage, and the extent to which leverage is used at any time, will depend on many factors.

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DIVIDEND REINVESTMENT PLAN

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 NAV at the time of valuation, the Fund will issue new shares at the greater of the NAV or 95% of the then-current market price. If the shares are trading at less than NAV, shares for your account will be purchased on the open market. If Computershare Trust Company, N.A. (the “Plan Agent”) begins purchasing Fund shares on the open market while shares are trading below NAV, but the Fund’s shares subsequently trade at or above their NAV 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’ NAV 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 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 Dividend Reinvestment Plan (the “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 professional or call us at (800) 257-8787.

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Shareholder Update (Unaudited) (continued)

CHANGES OCCURRING DURING THE FISCAL YEAR

The following information in this annual report is a summary of certain changes during the most recent fiscal year. This information may not reflect all of the changes that have occurred since you purchased shares of a Fund.

During the most recent fiscal year, there have been no changes to: (i) the Funds’ investment objectives and principal investment policies that have not been approved by shareholders, (ii) the principal risks of the Fund, (iii) the portfolio managers of the Funds; (iv) a Fund’s charter or by-laws that would delay or prevent a change of control of the Fund that have not been approved by shareholders except as follows:

Principal Risks

The following principal risk has been added for the Nuveen California Select Tax-Free Income Portfolio (NXC):

Sector Focus Risk. At times, the Fund may focus its investments (i.e., overweight its investments relative to the overall municipal securities market) in one or more particular sectors, which may subject the Fund to additional risk and variability. Securities issued in the same sector may be similarly affected by economic or market events, making the Fund more vulnerable to unfavorable developments in that sector than funds that invest more broadly. As the percentage of the Fund’s Managed Assets invested in a particular sector increases, so does the potential for fluctuation in the NAV of the Fund’s common shares.

Developments Regarding the Funds’ Control Share By-Law

On October 5, 2020, the Funds and certain other closed-end funds in the Nuveen fund complex amended their by-laws. Among other things, the amended by-laws included provisions pursuant to which, in summary, a shareholder who obtains beneficial ownership of common shares in a Control Share Acquisition (as defined in the by-laws) shall have the same voting rights as other common shareholders only to the extent authorized by the other disinterested shareholders (the “Control Share By-Law”). On January 14, 2021, a shareholder of certain Nuveen closed-end funds filed a civil complaint in the U.S. District Court for the Southern District of New York (the “District Court”) against certain Nuveen funds and their trustees, seeking a declaration that such funds’ Control Share By-Laws violate the 1940 Act, rescission of such fund’s Control Share By-Laws and a permanent injunction against such funds applying the Control Share By-Laws. On February 18, 2022, the District Court granted judgment in favor of the plaintiff’s claim for rescission of such funds’ Control Share By-Laws and the plaintiff’s declaratory judgment claim, and declared that such funds’ Control Share By-Laws violate Section 18(i) of the 1940 Act. Following review of the judgment of the District Court, on February 22, 2022, the Board amended the Funds’ bylaws to provide that the Funds’ Control Share By-Law shall be of no force and effect for so long as the judgment of the District Court is effective and that if the judgment of the District Court is reversed, overturned, vacated, stayed, or otherwise nullified, the Funds’ Control Share By-Law will be automatically reinstated and apply to any beneficial owner of common shares acquired in a Control Share Acquisition, regardless of whether such Control Share Acquisition occurs before or after such reinstatement, for the duration of the stay or upon issuance of the mandate reversing, overturning, vacating or otherwise nullifying the judgment of the District Court. On February 25, 2022, the Board and the Funds appealed the District Court’s decision to the U.S. Court of Appeals for the Second Circuit.

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Important Tax Information (Unaudited)

As required by the Internal Revenue Code and Treasury Regulations, certain tax information, as detailed below, must be provided to shareholders. Shareholders are advised to consult their tax advisor with respect to the tax implications of their investment. The amounts listed below may differ from the actual amounts reported on Form 1099-DIV, which will be sent to shareholders shortly after calendar year end.

Long-Term Capital Gains

As of year end, each Fund designates the following distribution amounts, or maximum amount allowable, as being from net long-term capital gains pursuant to Section 852(b)(3) of the Internal Revenue Code:

  Net Long-Term
Fund Capital Gains
NAC $ —
NKX
NCA
NXC 251,199

 

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Additional Fund Information (Unaudited)

Board of Trustees          
Jack B. Evans William C. Hunter Amy B.R. Lancellotta Joanne T. Medero Albin F. Moschner John K. Nelson
Judith M. Stockdale Carole E. Stone Mathew Thornton III Terence J. Toth Margaret L. Wolff Robert L. Young

 

 

Investment Adviser Custodian Legal Counsel Independent Registered Transfer Agent and
Nuveen Fund Advisors, LLC State Street Bank Chapman and Cutler LLP Public Accounting Firm Shareholder Services
333 West Wacker Drive & Trust Company Chicago, IL 60603 KPMG LLP Computershare Trust
Chicago, IL 60606 One Lincoln Street   200 East Randolph Street Company, N.A.
  Boston, MA 02111   Chicago, IL 60601 150 Royall Street
        Canton, MA 02021
        (800) 257-8787

 

 

 

Portfolio of Investments Information

Each Fund is required to file its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year as an exhibit to its report on Form N-PORT. You may obtain this information on the SEC’s Website at http://www.sec.gov.

 

Nuveen Funds’ Proxy Voting Information

You may obtain (i) information regarding how each fund voted proxies relating to portfolio securities held during the most recent twelve-month period ended June 30, without charge, upon request, by calling Nuveen toll-free at (800) 257-8787 or on Nuveen’s website at www.nuveen.com and (ii) 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 toll free at (800) 257-8787. You may also obtain this information directly from the SEC. Visit the SEC on-line at http://www.sec.gov.

 

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 CEO and Chief Financial Officer required by Section 302 of the Sarbanes –Oxley Act.

 

Common Share Repurchases

Each Fund intends to repurchase, through its open-market share repurchase program, shares of its own common stock at such times and in such amounts as is deemed advisable. During the period covered by this report, each Fund repurchased shares of its common stock as shown in the accompanying table. Any future repurchases will be reported to shareholders in the next annual or semi-annual report.

  NAC NKX NCA NXC
Common shares repurchased 0 0 0 0

 

FINRA BrokerCheck

The Financial Industry Regulatory Authority (FINRA) provides information regarding the disciplinary history of FINRA member firms and associated investment professionals. This information as well as an investor brochure describing FINRA BrokerCheck is available to the public by calling the FINRA BrokerCheck Hotline number at (800) 289-9999 or by visiting www.FINRA.org.

 

118

 

  

Glossary of Terms Used in this Report (Unaudited)

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.
Effective Leverage: Effective leverage is a fund’s effective economic leverage, and includes both regulatory leverage (see 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 regulatory leverage.
Gross Domestic Product (GDP): The total market value of all final goods and services produced in a country/region in a given year, equal to total consumer, investment and government spending, plus the value of exports, minus the value of imports.
Inverse Floating Rate Securities: Inverse floating rate securities, also known as inverse floaters or tender option bonds (TOBs), are created by depositing a municipal bond, typically with a fixed interest rate, into a special purpose trust. 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: Leverage is created whenever a fund has investment exposure (both reward and/or risk) equivalent to more than 100% of the investment capital.
Net Asset Value (NAV) Per Share: A fund’s Net Assets is equal to its total assets (securities, cash, accrued earnings and receivables) less its total liabilities. NAV per share is equal to the fund’s Net Assets divided by its number of shares outstanding.
Pre-Refunded Bond/Pre-Refunding: Pre-Refunded Bond/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.
Regulatory Leverage: Regulatory leverage consists of preferred shares issued by or borrowings of a fund. Both of these are part of a fund’s capital structure. Regulatory leverage is subject to asset coverage limits set in the Investment Company Act of 1940.
S&P Municipal Bond California Index: An index designed to measure the performance of the tax-exempt California municipal bond market. Index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees.
S&P Municipal Bond Index: An index designed to measure the performance of the tax-exempt U.S. municipal bond market. Index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees.

119

 

 

 

Glossary of Terms Used in this Report (Unaudited) (continued)

Tax Obligation/General Bonds: Bonds backed by the general revenues of an issuer, including taxes, where the issuer has the ability to increase taxes by an unlimited amount to pay the bonds back.
Tax Obligation/Limited Bonds: Bonds backed by the general revenues of an issuer, including taxes, where the issuer doesn't have the ability to increase taxes by an unlimited amount to pay the bonds back.
Total Investment Exposure: Total investment exposure is a fund’s assets managed by the Adviser that are attributable to financial leverage. For these purposes, financial leverage includes a fund’s use of preferred stock and borrowings and 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.

120

 

 

Board Members & Officers (Unaudited)

The management of the Funds, including general supervision of the duties performed for the Funds by the Adviser, is the responsibility of the Board of Trustees of the Funds. None of the trustees who are not “interested” persons of the Funds (referred to herein as “independent board members”) has ever been a director or employee of, or consultant to, Nuveen or its affiliates. The names and business addresses of the trustees and officers of the Funds, their principal occupations and other affiliations during the past five years, the number of portfolios each Trustee oversees and other directorships they hold are set forth below.

 

Name, Position(s) Held Year First Principal Number
Year of Birth with the Funds Elected or Occupation(s) of Portfolios
& Address   Appointed Including other in Fund Complex
    and Term(1) Directorships Overseen by
      During Past 5 Years Board Member
 
Independent Board Members:      
 
TERENCE J. TOTH     Formerly, a Co-Founding Partner, Promus Capital (investment advisory  
1959     firm) (2008-2017); formerly, Director, Quality Control Corporation  
333 W. Wacker Drive Chair and 2008 (manufacturing) (since 2012-2021); Chair of the Board of the Kehrein 142
Chicago, IL 6o6o6 Board Member Class II Center for the Arts (philanthropy) (since 2021); member: Catalyst  
      Schools of Chicago Board (since 2008) and Mather Foundation Board  
      (philanthropy) (since 2012), and chair of its Investment Committee;  
      formerly, Member, Chicago Fellowship Board (philanthropy) (2005-2016);  
      formerly, Director, Fulcrum IT Services LLC (information technology  
      services firm to government entities) (2010-2019); formerly, Director,  
      LogicMark LLC (health services) (2012-2016); formerly, Director, Legal &  
      General Investment Management America, Inc. (asset management)  
      (2008-2013); formerly, CEO and President, Northern Trust Global  
      Investments (financial services) (2004-2007): Executive Vice President,  
      Quantitative Management & Securities Lending (2000-2004); prior thereto,  
      various positions with Northern Trust Company (financial services) (since  
      1994); formerly, Member, Northern Trust Mutual Funds Board (2005-2007),  
      Northern Trust Global Investments Board (2004-2007), Northern Trust Japan  
      Board (2004-2007), Northern Trust Securities Inc. Board (2003-2007) and  
      Northern Trust Hong Kong Board (1997-2004).  
 
JACK B. EVANS     Chairman (since 2019), formerly, President (1996-2019), The Hall-Perrine  
1948     Foundation, (private philanthropic corporation); Life Trustee of Coe College;  
333 W. Wacker Drive Board Member 1999 formerly, Member and President Pro-Tem of the Board of Regents for the 142
Chicago, IL 6o6o6   Class III State of Iowa University System (2007- 2013); Director and Chairman  
      (2009-2021), United Fire Group, a publicly held company; Director,  
      Public Member, American Board of Orthopaedic Surgery (2015-2020);  
      Director (2000-2004), Alliant Energy; Director (1996-2015), The  
      Gazette Company (media and publishing); Director (1997- 2003), Federal  
      Reserve Bank of Chicago; President and Chief Operating Officer (1972-1995),  
      SCI Financial Group, Inc., (regional financial services firm).  
 
WILLIAM C. HUNTER     Dean Emeritus, formerly, Dean, Tippie College of Business, University of  
1948     (2006-2012); Director of Wellmark, Inc. (since 2009); past Director (2005-  
333 W. Wacker Drive Board Member 2003 2015), and past President (2010-2014) Beta Gamma Sigma, Inc., The 142
Chicago, IL 6o6o6   Class I International Business Honor Society; formerly, Director (2004-2018) of  
      Xerox Corporation; formerly, Dean and Distinguished Professor of Finance,  
      School of Business at the University of Connecticut (2003-2006); previously,  
      Senior Vice President and Director of Research at the Federal Reserve Bank  
      of Chicago (1995-2003); formerly, Director (1997-2007), Credit Research  
      Center at Georgetown University.  
 
AMY B. R. LANCELLOTTA     Formerly, Managing Director, Independent Directors Council (IDC) (supports  
1959     the fund independent director community and is part of the Investment  
333 W. Wacker Drive Board Member 2021 Company Institute (ICI), which represents regulated investment companies) 142
Chicago, IL 6o6o6   Class II (2006-2019); formerly, various positions with ICI (1989-2006); Member of  
      the Board of Directors, Jewish Coalition Against Domestic Abuse (JCADA)  
      (since 2020).  

  

121

 

  

Board Members & Officers (Unaudited) (continued)

Name, Position(s) Held Year First Principal Number
Year of Birth with the Funds Elected or Occupation(s) of Portfolios
& Address   Appointed Including other in Fund Complex
    and Term(1) Directorships Overseen by
      During Past 5 Years Board Member
 
Independent Board Members (continued):      
 
JOANNE T. MEDERO     Formerly, Managing Director, Government Relations and Public Policy  
1954     (2009-2020) and Senior Advisor to the Vice Chairman (2018-2020),  
333 W. Wacker Drive Board Member 2021 BlackRock, Inc. (global investment management firm); formerly, Managing 142
Chicago, IL 6o6o6   Class III (Director, Global Head of Government Relations and Public Policy, Barclays  
      Group (IBIM) (investment banking, investment management and wealth  
      management businesses) (2006-2009); formerly, Managing Director, Global  
      General Counsel and Corporate Secretary, Barclays Global Investors (global  
      investment management firm) (1996-2006); formerly, Partner, Orrick,  
      Herrington & Sutcliffe LLP (law firm) (1993-1995); formerly, General Counsel,  
      Commodity Futures Trading Commission (government agency overseeing  
      U.S. derivatives markets) (1989-1993); formerly, Deputy Associate Director/  
      Associate Director for Legal and Financial Affairs, Office of Presidential  
      Personnel, The White House (1986-1989); Member of the Board of Directors,  
      Baltic-American Freedom Foundation (seeks to provide opportunities for  
      citizens of the Baltic states to gain education and professional development  
      through exchanges in the U.S.) (since 2019).  
 
ALBIN F. MOSCHNER     Founder and Chief Executive Officer, Northcroft Partners, LLC,  
1952     (management consulting) (since 2012); formerly, Chairman (2019), and  
333 W. Wacker Drive Board Member 2016 Director (2012-2019), USA Technologies, Inc., (provider of solutions 142
Chicago, IL 6o6o6   Class III and services to facilitate electronic payment transactions); formerly,  
      Director, Wintrust Financial Corporation (1996-2016); previously, held  
      positions at Leap Wireless International, Inc., (consumer wireless services)  
      including Consultant (2011- 2012), Chief Operating Officer (2008-2011), and  
      Chief Marketing Officer (2004- 2008); formerly, President, Verizon Card  
      Services division of Verizon Communications, Inc. (2000-2003); formerly,  
      President, One Point Services at One Point Communications  
      (telecommunication services) (1999-2000); formerly, Vice Chairman of  
      the Board, Diba, Incorporated (internet technology provider) (1996-1997);  
      formerly, various executive positions (1991-1996) including Chief Executive  
      Officer (1995-1996) of Zenith Electronics Corporation (consumer electronics).  
 
JOHN K. NELSON     Member of Board of Directors of Core12 LLC. (private firm which  
1962     develops branding, marketing and communications strategies for  
333 W. Wacker Drive Board Member 2013 clients) (since 2008); served on The President’s Council of Fordham 142
Chicago, IL 6o6o6   Class II University (2010-2019) and previously a Director of the Curran Center  
      for Catholic American Studies (2009- 2018); formerly, senior external  
      advisor to the Financial Services practice of Deloitte Consulting LLP.  
      (2012-2014); former Chair of the Board of Trustees of Marian University  
      (2010-2014 as trustee, 2011-2014 as Chair); formerly Chief Executive Officer  
      of ABN AMRO Bank N.V., North America, and Global Head of the Financial  
      Markets Division (2007-2008), with various executive leadership roles in ABN  
      AMRO Bank N.V. between 1996 and 2007.  
 
JUDITH M. STOCKDALE     Board Member, Land Trust Alliance (national public charity addressing  
1947     natural land and water conservation in the U.S.) (since 2013); formerly,  
333 W. Wacker Drive Board Member 1997 Board Member, U.S. Endowment for Forestry and Communities (national 142
Chicago, IL 6o6o6   Class I endowment addressing forest health, sustainable forest production and  
      markets, and economic health of forest-reliant communities in the U.S.)  
      (2013-2019); formerly, Executive Director (1994-2012), Gaylord and Dorothy  
      Donnelley Foundation (private foundation endowed to support both natural  
      land conservation and artistic vitality); prior thereto, Executive Director,  
      Great Lakes Protection Fund (endowment created jointly by seven of the  
      eight Great Lake states’ Governors to take a regional approach to improving  
      the health of the Great Lakes) (1990-1994).  

 

 

122

 

 

 

Name, Position(s) Held Year First Principal Number
Year of Birth with the Funds Elected or Occupation(s) of Portfolios
& Address   Appointed Including other in Fund Complex
    and Term(1) Directorships Overseen by
      During Past 5 Years Board Member
 
 
Independent Board Members (continued):      
 
CAROLE E. STONE     Former Director, Chicago Board Options Exchange, Inc. (2006-2017);  
1947     and C2 Options Exchange, Incorporated (2009-2017); formerly Director,  
333 W. Wacker Drive Board Member 2007 Cboe, Global Markets, Inc., (2010-2020) formerly named CBOE Holdings, 142
Chicago, IL 6o6o6   Class I Inc.; formerly, Commissioner, New York State Commission on  
      Public Authority Reform (2005-2010).  
 
MATTHEW THORNTON III     Formerly, Executive Vice President and Chief Operating Officer (2018-2019),  
1958     FedEx Freight Corporation, a subsidiary of FedEx Corporation (“FedEx”)  
333 West Wacker Drive Board Member 2020 (provider of transportation, e-commerce and business services through its 142
Chicago, IL 60606   Class III portfolio of companies); formerly, Senior Vice President, U.S. Operations  
      (2006-2018), Federal Express Corporation, a subsidiary of FedEx; formerly,  
      Member of the Board of Directors (2012-2018), Safe Kids Worldwide® (a  
      non-profit organization dedicated to preventing childhood injuries).  
      Member of the Board of Directors (since 2014), The Sherwin-Williams  
      Company (develops, manufactures, distributes and sells paints, coatings  
      and related products); Director (since 2020), Crown Castle International  
      (provider of communications infrastructure).  
 
MARGARET L. WOLFF     Formerly, member of the Board of Directors (2013-2017) of Travelers  
1955     Insurance Company of Canada and The Dominion of Canada General  
333 W. Wacker Drive Board Member 2016 Insurance Company (each, a part of Travelers Canada, the Canadian 142
Chicago, IL 6o6o6   Class I operation of The Travelers Companies, Inc.); formerly, Of Counsel,  
      Skadden, Arps, Slate, Meagher & Flom LLP (Mergers & Acquisitions  
      Group) (legal services) (2005-2014); Member of the Board of Trustees  
      of New York-Presbyterian Hospital (since 2005); Member (since 2004)  
      and Chair (since 2015) of the Board of Trustees of The John A. Hartford  
      Foundation (philanthropy dedicated to improving the care of older adults);  
      formerly, Member (2005-2015) and Vice Chair (2011-2015) of the Board of  
      Trustees of Mt. Holyoke College.  
 
ROBERT L. YOUNG     Formerly, Chief Operating Officer and Director, J.P.Morgan Investment  
1963     Management Inc. (financial services) (2010-2016); formerly, President  
333 W. Wacker Drive Board Member 2017 and Principal Executive Officer (2013-2016), and Senior Vice President 142
Chicago, IL 6o6o6   Class II and Chief Operating Officer (2005-2010), of J.P.Morgan Funds; formerly,  
      Director and various officer positions for J.P.Morgan Investment  
      Management Inc. (formerly, JPMorgan Funds Management, Inc. and  
      formerly, One Group Administrative Services) and JPMorgan Distribution  
      Services, Inc. (financial services) (formerly, One Group Dealer Services,  
      Inc.) (1999-2017).  

 

123

 

  

Board Members & Officers (Unaudited) (continued)

Name, Position(s) Held Year First Principal
Year of Birth with the Funds Elected or Occupation(s)
& Address   Appointed(2) During Past 5 Years
 
Officers of the Funds:      
 
DAVID J. LAMB     Managing Director of Nuveen Fund Advisors, LLC (since 2019) Senior Managing Director
1963 Chief   (since 2021), formerly, Managing Director (2020-2021) of Nuveen Securities, LLC; Senior
333 W. Wacker Drive Administrative 2015 Managing Director (since 2021), formerly, Managing Director (2017-2021), Senior Vice President
Chicago, IL 6o6o6 Officer   of Nuveen (2006-2017), Vice President prior to 2006.
 
MARK J. CZARNIECKI     Vice President and Assistant Secretary of Nuveen Securities, LLC (since 2016) and Nuveen Fund
1979 Vice President   Advisors (since 2017); Managing Director and Associate General Counsel (since January 2022),
901 Marquette Avenue and Assistant 2013 formerly, Vice President and Associate General Counsel of Nuveen (2013-2021) and Vice
Minneapolis, MN 55402 Secretary   President, Assistant Secretary and Associate General Counsel of Nuveen Asset Management
      LLC (since 2018).
 
DIANA R. GONZALEZ     Vice President and Assistant Secretary of Nuveen Fund Advisors, LLC (since 2017); Vice
1978 Vice President   President and Associate General Counsel of Nuveen (since 2017); formerly, Associate General
333 W. Wacker Drive and Assistant 2017 Counsel of Jackson National Asset Management (2012-2017).
Chicago, IL 6o6o6 Secretary    
 
NATHANIEL T. JONES     Senior Managing Director (since 2021), formerly, Managing Director (2017-2021), Senior Vice
1979     President (2016-2017), Vice President (2011-2016) of Nuveen; Managing Director
333 W. Wacker Drive Vice President 2016 (since 2015) of Nuveen Fund Advisors, LLC; Chartered Financial Analyst.
Chicago, IL 6o6o6 and Treasurer    
 
TINA M. LAZAR     Managing Director (since 2017), formerly, Senior Vice President (2014-2017) of Nuveen
1961   2002 Securities, LLC.
333 W. Wacker Drive Vice President    
Chicago, IL 6o6o6      
 
BRIAN J. LOCKHART     Managing Director (since 2019) of Nuveen Fund Advisors, LLC; Senior Managing Director (since
1974     2021), formerly, Managing Director (2017-2021), Vice President (2010-2017) of Nuveen; Head
333 W. Wacker Drive Vice President 2019 of Investment Oversight (since 2017), formerly, Team Leader of Manager Oversight (2015-2017);
Chicago, IL 6o6o6     Chartered Financial Analyst and Certified Financial Risk Manager.
 
JACQUES M. LONGERSTAEY     Senior Managing Director, Chief Risk Officer, Nuveen, LLC (since May 2019); Senior Managing
1963     Director (since May 2019) of Nuveen Fund Advisors, LLC; formerly, Chief Investment and Model
8500 Andrew Vice President 2019 Risk Officer, Wealth & Investment Management Division, Wells Fargo Bank (NA) (2013-2019).
Carnegie Blvd.      
Charlotte, NC 28262      
 
JOHN M. MCCANN     Managing Director and Assistant Secretary of Nuveen Fund Advisors, LLC (since 2021); Managing
1975 Vice President   Director, Associate General Counsel and Assistant Secretary of Nuveen Asset Management, LLC
8500 Andrew 2022 (since 2021); Managing Director of TIAA SMA Strategies LLC (since 2021); Managing Director
Carnegie Blvd.     (since 2019, formerly, Vice President and Director), Associate General Counsel and Assistant
Charlotte, NC 28262     Secretary of College Retirement Equities Fund, TIAA Separate Account VA-1, TIAA-CREF Funds and
      TIAA-CREF Life Funds; Managing Director (since 2018), formerly, Vice President and Director,
      Associate General Counsel and Assistant Secretary of Teachers Insurance and Annuity Association
      of America, Teacher Advisors LLC and TIAA-CREF Investment Management, LLC; Vice President
      (since 2017), Associate General Counsel and Assistant Secretary (since 2011) of Nuveen Alternative
      Advisors LLC; General Counsel and Assistant Secretary of Covariance Capital Management, Inc.
      (2014-2017).
 
KEVIN J. MCCARTHY     Senior Managing Director (since 2017) and Secretary and General Counsel (since 2016) of Nuveen
1966 Vice President   Investments, Inc., formerly, Executive Vice President (2016-2017) and Managing Director and
333 W. Wacker Drive and Assistant 2007 Assistant Secretary (2008-2016); Senior Managing Director (since 2017) and Assistant Secretary
Chicago, IL 6o6o6 Secretary   (since 2008) of Nuveen Securities, LLC, formerly Executive Vice President (2016-2017) and
      Managing Director (2008- 2016); Senior Managing Director (since 2017), and Secretary (since
      2016) of Nuveen Fund Advisors, LLC, formerly, Co-General Counsel (2011-2020), Executive Vice
      President (2016-2017), Managing Director (2008-2016) and Assistant Secretary (2007-2016); Senior
      Managing Director (since 2017), Secretary (since 2016) of Nuveen Asset Management, LLC,
      formerly, Associate General Counsel (2011-2020), Executive Vice President (2016-2017) and
      Managing Director and Assistant Secretary (2011- 2016); formerly, Vice President (2007-2021) and
      Secretary (2016-2021), of NWQ Investment Management Company, LLC, and Santa Barbara Asset
      Management, LLC; Vice President and Secretary of Winslow Capital Management, LLC (since 2010).
      Senior Managing Director (since 2017) and Secretary (since 2016) of Nuveen Alternative
      Investments, LLC.

 

 

124

 

  

Name, Position(s) Held Year First Principal
Year of Birth with the Funds Elected or Occupation(s)
& Address   Appointed(2) During Past 5 Years
 
Officers of the Funds (continued):    
 
JON SCOTT MEISSNER     Managing Director of Mutual Fund Tax and Financial Reporting groups at Nuveen (since 2017);
1973 Vice President   Managing Director of Nuveen Fund Advisors, LLC (since 2019); Senior Director of Teachers
8500 Andrew and Assistant 2019 Advisors, LLC and TIAA-CREF Investment Management, LLC (since 2016); Senior Director (since
Carnegie Blvd. Secretary   2015) Mutual Fund Taxation to the TIAA-CREF Funds, the TIAA-CREF Life Funds, the TIAA Separate
Charlotte, NC 28262     Account VA-1 and the CREF Accounts; has held various positions with TIAA since 2004.
 
DEANN D. MORGAN     President, Nuveen Fund Advisors, LLC (since 2020); Executive Vice President, Global Head
1969     of Product at Nuveen (since 2019); Co-Chief Executive Officer of Nuveen Securities, LLC since
730 Third Avenue Vice President 2020 2020); Managing Member of MDR Collaboratory LLC (since 2018); formerly, Managing Director,
New York, NY 10017     (Head of Wealth Management Product Structuring & COO Multi Asset Investing. The Blackstone
      Group (2013-2017).
 
WILLIAM A. SIFFERMANN     Managing Director (since 2017), formerly Senior Vice President (2016-2017) and Vice President
1975     (2011-2016) of Nuveen.
333 W. Wacker Drive Vice President 2017  
Chicago, IL 6o6o6      
 
E. SCOTT WICKERHAM     Senior Managing Director, Head of Public Investment Finance at Nuveen (since 2019), formerly,
1973 Vice President   Managing Director; Senior Managing Director (since 2019) of Nuveen Fund Advisers, (LLC;
8500 Andrew and Controller 2019 Principal Financial Officer, Principal Accounting Officer and Treasurer (since 2017) of the TIAA-
Carnegie Blvd.     CREF Funds, the TIAA-CREF Life Funds, the TIAA Separate Account VA-1 and Principal Financial
Charlotte, NC 28262     Officer, Principal Accounting Officer (since 2020) and Treasurer (since 2017) to the CREF Accounts;
      formerly, Senior Director, TIAA-CREF Fund Administration (2014-2015); has held various positions
      with TIAA since 2006.
 
MARK L. WINGET     Vice President and Assistant Secretary of Nuveen Securities, LLC (since 2008), and Nuveen Fund
1968 Vice President   Advisors, LLC (since 2019); Vice President, Associate General Counsel and Assistant Secretary of
333 W. Wacker Drive and Secretary 2008 Nuveen Asset Management, LLC (since 2020); Vice President (since 2010) and Associate General
Chicago, IL 60606     Counsel (since 2019), formerly, Assistant General Counsel (2008-2016) of Nuveen.
 
GIFFORD R. ZIMMERMAN     Formerly, Managing Director (2002-2020) and Assistant Secretary (2002-2020) of Nuveen
1956 Vice President   Securities, LLC; formerly, Managing Director (2002-2020), Assistant Secretary (1997-2020) and
333 W. Wacker Drive and Chief 1988 Co-General Counsel (2011- 2020) of Nuveen Fund Advisors, LLC; formerly, Managing Director
Chicago, IL 60606 Compliance Officer   (2004-2020) and Assistant Secretary (1994-2020) of Nuveen Investments, Inc.; formerly, Managing
      Director, Assistant Secretary and Associate General Counsel of Nuveen Asset Management, LLC
      (2011-2020); formerly, Vice President and Assistant Secretary of NWQ Investment Management
      Company, LLC (2002-2020), Santa Barbara Asset Management, LLC (2006-2020) and Winslow
      Capital Management, LLC (2010-2020); Chartered Financial Analyst.

 

 

(1)The Board of Trustees is divided into three classes, Class I, Class II, and Class III, with each being elected to serve until the third succeeding annual shareholders’ meeting subsequent to its election or thereafter in each case when its respective successors are duly elected or appointed, except two board members are elected by the holders of Preferred Shares, when applicable, to serve until the next annual shareholders’ meeting subsequent to its election or thereafter in each case when its respective successors are duly elected or appointed. The year first elected or appointed represents the year in which the board member was first elected or appointed to any fund in the Nuveen complex.
(2)Officers serve indefinite terms until their successor has been duly elected and qualified, their death or their resignation or removal. The year first elected or appointed represents the year in which the Officer was first elected or appointed to any fund in the Nuveen complex.

125

 

 

 

Notes

126

 

 

 

Notes

127

 

 

 

 

Nuveen:

Serving Investors for Generations

Since 1898, financial professionals and their clients have relied on Nuveen to provide dependable investment solutions through continued adherence to proven, long-term investing principles. Today, we offer a range of high quality solutions designed to be integral components of a well-diversified core portfolio.

Focused on meeting investor needs.

Nuveen is the investment manager of TIAA. We have grown into one of the world’s premier global asset managers, with specialist knowledge across all major asset classes and particular strength in solutions that provide income for investors and that draw on our expertise in alternatives and responsible investing. Nuveen is driven not only by the independent investment processes across the firm, but also the insights, risk management, analytics and other tools and resources that a truly world-class platform provides. As a global asset manager, our mission is to work in partnership with our clients to create solutions which help them secure their financial future.

Find out how we can help you.

To learn more about how the products and services of Nuveen may be able to help you meet your financial goals, talk to your financial professional, 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, 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/closed-end funds

Nuveen Securities, LLC, member FINRA and SIPC | 333 West Wacker Drive Chicago, IL 60606 | www.nuveen.com

 

 

EAN-A-0222D 2104104-INV-Y-04/23

 

 

 

 

ITEM 2. CODE OF ETHICS.

 

As of the end of the period covered by this report, the registrant has adopted a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. There were no amendments to or waivers from the Code during the period covered by this report. The registrant has posted the code of ethics on its website at www.nuveen.com/fund-governance. (To view the code, click on Code of Conduct.)

 

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.

 

As of the end of the period covered by this report, the registrant’s Board of Directors or Trustees (“Board”) determined that the registrant has at least one “audit committee financial expert” (as defined in Item 3 of Form N-CSR) serving on its Audit Committee. The registrant’s audit committee financial experts are Carole E. Stone, Jack B. Evans and Albin F. Moschner, who are “independent” for purposes of Item 3 of Form N-CSR.

 

Ms. Stone served for five years as Director of the New York State Division of the Budget. As part of her role as Director, Ms. Stone was actively involved in overseeing the development of the State’s operating, local assistance and capital budgets, its financial plan and related documents; overseeing the development of the State’s bond-related disclosure documents and certifying that they fairly presented the State’s financial position; reviewing audits of various State and local agencies and programs; and coordinating the State’s system of internal audit and control. Prior to serving as Director, Ms. Stone worked as a budget analyst/examiner with increasing levels of responsibility over a 30 year period, including approximately five years as Deputy Budget Director. Ms. Stone has also served as Chair of the New York State Racing Association Oversight Board, as Chair of the Public Authorities Control Board, as a Commissioner on the New York State Commission on Public Authority Reform and as a member of the Boards of Directors of several New York State public authorities. These positions have involved overseeing operations and finances of certain entities and assessing the adequacy of project/entity financing and financial reporting. Currently, Ms. Stone is on the Board of Directors of CBOE Holdings, Inc., of the Chicago Board Options Exchange, and of C2 Options Exchange. Ms. Stone’s position on the boards of these entities and as a member of both CBOE Holdings’ Audit Committee and its Finance Committee has involved, among other things, the oversight of audits, audit plans and preparation of financial statements.

 

Mr. Evans was formerly President and Chief Operating Officer of SCI Financial Group, Inc., a full service registered broker-dealer and registered investment adviser (“SCI”). As part of his role as President and Chief Operating Officer, Mr. Evans actively supervised the Chief Financial Officer (the “CFO”) and actively supervised the CFO’s preparation of financial statements and other filings with various regulatory authorities. In such capacity, Mr. Evans was actively involved in the preparation of SCI’s financial statements and the resolution of issues raised in connection therewith. Mr. Evans has also served on the audit committee of various reporting companies. At such companies, Mr. Evans was involved in the oversight of audits, audit plans, and the preparation of financial statements. Mr. Evans also formerly chaired the audit committee of the Federal Reserve Bank of Chicago.

 

Mr. Moschner, Founder and Chief Executive Officer, Northcroft Partners, LLC, (management consulting) (since 2012); formerly, Chairman (2019), and Director (2012-2019), USA Technologies, Inc., (provider of solutions and services to facilitate electronic payment transactions); formerly, Director, Wintrust Financial Corporation (1996-2016); previously, held positions at Leap Wireless International, Inc., (consumer wireless services) including Consultant (2011-2012), Chief Operating Officer (2008-2011), and Chief Marketing Officer (2004-2008); formerly, President, Verizon Card Services division of Verizon Communications, Inc. (2000-2003); formerly, President, One Point Services at One Point Communications (telecommunication services) (1999-2000); formerly, Vice Chairman of the Board, Diba, Incorporated (internet technology provider) (1996-1997); formerly, various executive positions (1991-1996), including Chief Executive Officer (1995-1996) of Zenith Electronics Corporation (consumer electronics).

 

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

 

Nuveen California Select Tax-Free Income Portfolio

 

The following tables show the amount of fees that KPMG LLP, the Fund’s auditor, billed to the Fund during the Fund’s last two full fiscal years. For engagements with KPMG LLP the Audit Committee approved in advance all audit services and non-audit services that KPMG LLP provided to the Fund, except for those non-audit services that were subject to the pre-approval exception under Rule 2-01 of Regulation S-X (the “pre-approval exception”). The pre-approval exception for services provided directly to the Fund waives the pre-approval requirement for services other than audit, review or attest services if: (A) the aggregate amount of all such services provided constitutes no more than 5% of the total amount of revenues paid by the Fund to its accountant during the fiscal year in which the services are provided; (B) the Fund did not recognize the services as non-audit services at the time of the engagement; and (C) the services are promptly brought to the Audit Committee’s attention, and the Committee (or its delegate) approves the services before the audit is completed.

 

The Audit Committee has delegated certain pre-approval responsibilities to its Chair (or, in her absence, any other member of the Audit Committee).

 

SERVICES THAT THE FUND’S AUDITOR BILLED TO THE FUND

 

   Audit Fees Billed   Audit-Related Fees   Tax Fees   All Other Fees 
Fiscal Year Ended  to Fund 1   Billed to Fund 2   Billed to Fund 3   Billed to Fund 4 
February 28, 2022  $26,740   $0   $0   $0 
                     
Percentage approved   0%   0%   0%   0%
pursuant to                    
pre-approval                    
exception                    
                     
March 31, 2021 5  $25,730   $0   $0   $0 
                     
Percentage approved   0%   0%   0%   0%
pursuant to                    
pre-approval                    
exception                    
                     

 

1 "Audit Fees" are the aggregate fees billed for professional services for the audit of the Fund's annual financial statements and services provided in connection with statutory and regulatory filings or engagements.

 

2 "Audit Related Fees" are the aggregate fees billed for assurance and related services reasonably related to the performance of the audit or review of financial statements that are not reported under "Audit Fees". These fees include offerings related to the Fund's common shares and leverage.

 

3 "Tax Fees" are the aggregate fees billed for professional services for tax advice, tax compliance, and tax planning. These fees include: all global withholding tax services; excise and state tax reviews; capital gain, tax equalization and taxable basis calculation performed by the principal accountant.

 

4 "All Other Fees" are the aggregate fees billed for products and services other than "Audit Fees", "Audit-Related Fees" and "Tax Fees". These fees represent all "Agreed-Upon Procedures" engagements pertaining to the Fund's use of leverage.

 

5 The Board approved the change in fiscal year end from 3/31 to 2/28 for NXC in February 2022.

 

SERVICES THAT THE FUND’S AUDITOR BILLED TO THE ADVISER AND AFFILIATED FUND SERVICE PROVIDERS

 

The following tables show the amount of fees billed by KPMG LLP to Nuveen Fund Advisors, LLC (formerly Nuveen Fund Advisors, Inc.) (the “Adviser”), and any entity controlling, controlled by or under common control with the Adviser that provides ongoing services to the Fund (“Affiliated Fund Service Provider”), for engagements directly related to the Fund’s operations and financial reporting, during the Fund’s last two full fiscal years.

 

The tables also show the percentage of fees subject to the pre-approval exception. The pre-approval exception for services provided to the Adviser and any Affiliated Fund Service Provider (other than audit, review or attest services) waives the pre-approval requirement if: (A) the aggregate amount of all such services provided constitutes no more than 5% of the total amount of revenues paid to KPMG LLP by the Fund, the Adviser and Affiliated Fund Service Providers during the fiscal year in which the services are provided that would have to be pre-approved by the Audit Committee; (B) the Fund did not recognize the services as non-audit services at the time of the engagement; and (C) the services are promptly brought to the Audit Committee’s attention, and the Committee (or its delegate) approves the services before the Fund’s audit is completed.

 

  Audit-Related Fees Tax Fees Billed to All Other Fees
  Billed to Adviser and Adviser and Billed to Adviser
  Affiliated Fund Affiliated Fund and Affiliated Fund
Fiscal Year Ended Service Providers Service Providers  Service Providers
February 28, 2022  $                            0  $                                  0  $                                0
       
Percentage approved 0% 0% 0%
pursuant to      
pre-approval      
exception      
March 31, 2021  $                            0  $                                  0  $                                0
       
Percentage approved 0% 0% 0%
pursuant to      
pre-approval      
exception      

 

NON-AUDIT SERVICES

 

The following table shows the amount of fees that KPMG LLP billed during the Fund’s last two full fiscal years for non-audit services. The Audit Committee is required to pre-approve non- audit services that KPMG LLP provides to the Adviser and any Affiliated Fund Services Provider, if the engagement related directly to the Fund’s operations and financial reporting (except for those subject to the pre-approval exception described above). The Audit Committee requested and received information from KPMG LLP about any non-audit services that KPMG LLP rendered during the Fund’s last fiscal year to the Adviser and any Affiliated Fund Service Provider. The Committee considered this information in evaluating KPMG LLP’s independence.

 

    Total Non-Audit Fees    
    billed to Adviser and    
    Affiliated Fund Service Total Non-Audit Fees  
    Providers (engagements billed to Adviser and  
    related directly to the Affiliated Fund Service  
  Total Non-Audit Fees operations and financial Providers (all other  
Fiscal Year Ended Billed to Fund reporting of the Fund)  engagements) Total
February 28, 2022  $                            0  $                                  0  $                                0  $                        0
March 31, 2021  $                            0  $                                  0  $                                0  $                        0

 

"Non-Audit Fees billed to Fund" for both fiscal year ends represent "Tax Fees" and "All Other Fees" billed to Fund in their respective amounts from the previous table.        

         

Less than 50 percent of the hours expended on the principal accountant's engagement to audit the registrant's financial statements for the most recent fiscal year were attributed to work performed by persons other than the principal accountant's full-time, permanent employees.   

 

Audit Committee Pre-Approval Policies and Procedures. Generally, the Audit Committee must approve (i) all non-audit services to be performed for the Fund by the Fund’s independent accountants and (ii) all audit and non-audit services to be performed by the Fund’s independent accountants for the Affiliated Fund Service Providers with respect to operations and financial reporting of the Fund. Regarding tax and research projects conducted by the independent accountants for the Fund and Affiliated Fund Service Providers (with respect to operations and financial reports of the Fund) such engagements will be (i) pre-approved by the Audit Committee if they are expected to be for amounts greater than $10,000; (ii) reported to the Audit Committee chair for her verbal approval prior to engagement if they are expected to be for amounts under $10,000 but greater than $5,000; and (iii) reported to the Audit Committee at the next Audit Committee meeting if they are expected to be for an amount under $5,000.

 

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.

 

The registrant's Board has a separately designated Audit Committee established in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934, as amended (15 U.S.C. 78c(a)(58)(A)). As of the end of the period covered by this report the members of the audit committee are Jack B. Evans, John K. Nelson, Albin F. Moschner, Judith M. Stockdale, Carole E. Stone, Chair, and Robert L. Young.

 

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.

 

Nuveen Fund Advisors, LLC is the registrant’s investment adviser (referred to herein as the “Adviser”). The Adviser is responsible for the on-going monitoring of the Fund’s investment portfolio, managing the Fund’s business affairs and providing certain clerical, bookkeeping and administrative services. The Adviser has engaged Nuveen Asset Management, LLC (“Sub-Adviser”) as Sub-Adviser to provide discretionary investment advisory services. As part of these services, the Adviser has delegated to the Sub-Adviser the full responsibility for proxy voting on securities held in the registrant’s portfolio and related duties in accordance with the Sub-Adviser’s policies and procedures. The Adviser periodically monitors the Sub-Adviser’s voting to ensure that it is carrying out its duties. The Sub-Adviser’s proxy voting policies and procedures are attached to this filing as an exhibit and incorporated herein by reference.

 

ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Nuveen Fund Advisors, LLC is the registrant’s investment adviser (also referred to as the “Adviser”). The Adviser is responsible for the selection and on-going monitoring of the Fund’s investment portfolio, managing the Fund’s business affairs and providing certain clerical, bookkeeping and administrative services. The Adviser has engaged Nuveen Asset Management, LLC (“Nuveen Asset Management” or “Sub-Adviser”) as Sub-Adviser to provide discretionary investment advisory services. The following section provides information on the portfolio manager at the Sub-Adviser:

ITEM 8(a)(1). PORTFOLIO MANAGER BIOGRAPHY

As of the date of filing this report, the following individual at the Sub-Adviser (the “Portfolio Manager”) has primary responsibility for the day-to-day implementation of the Fund’s investment strategy:

Scott R. Romans, PhD, Managing Director of Nuveen Asset Management, responsible for managing several state-specific, tax-exempt portfolios, including the California Municipal Bond and the New York Municipal Bond strategies. He also serves as portfolio manager for a number of closed-end funds. Before moving to his portfolio management role in 2003, he was a senior research analyst in the firm’s tax-exempt fixed income department, specializing in the education sector. He holds an undergraduate degree from the University of Pennsylvania and an MA and PhD from the University of Chicago.

ITEM 8(a)(2). OTHER ACCOUNTS MANAGED BY PORTFOLIO MANAGERS

 Other Accounts Managed. In addition to managing the registrant, the portfolio manager is also primarily responsible for the day-to-day portfolio management of the following accounts:

 Portfolio Manager

 

Type of Account
Managed

 

Number of
Accounts

 

Assets*

 
 Scott R. Romans  Registered Investment Company 10 $15.21 billion
   Other Pooled Investment Vehicles 0 $0
   Other Accounts 3 $5.80 million
*Assets are as of February 28, 2022. None of the assets in these accounts are subject to an advisory fee based on performance.

POTENTIAL MATERIAL CONFLICTS OF INTEREST

Actual or apparent conflicts of interest may arise when a portfolio manager has day-to-day management responsibilities with respect to more than one account. More specifically, portfolio managers who manage multiple accounts are presented a number of potential conflicts, including, among others, those discussed below.

The management of multiple accounts may result in a portfolio manager devoting unequal time and attention to the management of each account. Nuveen Asset Management seeks to manage such competing interests for the time and attention of portfolio managers by having portfolio managers focus on a particular investment discipline. Most accounts managed by a portfolio manager in a particular investment strategy are managed using the same investment models.

If a portfolio manager identifies a limited investment opportunity which may be suitable for more than one account, an account may not be able to take full advantage of that opportunity due to an allocation of filled purchase or sale orders across all eligible accounts. To deal with these situations, Nuveen Asset Management has adopted procedures for allocating limited opportunities across multiple accounts.

With respect to many of its clients’ accounts, Nuveen Asset Management determines which broker to use to execute transaction orders, consistent with its duty to seek best execution of the transaction. However, with respect to certain other accounts, Nuveen Asset Management may be limited by the client with respect to the selection of brokers or may be instructed to direct trades through a particular broker. In these cases, Nuveen Asset Management may place separate, non-simultaneous, transactions for a Fund and other accounts which may temporarily affect the market price of the security or the execution of the transaction, or both, to the detriment of the Fund or the other accounts.

Some clients are subject to different regulations. As a consequence of this difference in regulatory requirements, some clients may not be permitted to engage in all the investment techniques or transactions or to engage in these transactions to the same extent as the other accounts managed by the portfolio manager. Finally, the appearance of a conflict of interest may arise where Nuveen Asset Management has an incentive, such as a performance-based management fee, which relates to the management of some accounts, with respect to which a portfolio manager has day-to-day management responsibilities.

Conflicts of interest may also arise when the Sub-Adviser invests one or more of its client accounts in different or multiple parts of the same issuer’s capital structure, including investments in public versus private securities, debt versus equity, or senior versus junior/subordinated debt, or otherwise where there are different or inconsistent rights or benefits. Decisions or actions such as investing, trading, proxy voting, exercising, waiving or amending rights or covenants, workout activity, or serving on a board, committee or other involvement in governance may result in conflicts of interest between clients holding different securities or investments. Generally, individual portfolio managers will seek to act in a manner that they believe serves the best interest of the accounts they manage. In cases where a portfolio manager or team faces a conflict among its client accounts, it will seek to act in a manner that it believes best reflects its overall fiduciary duty, which may result in relative advantages or disadvantages for particular accounts.

Nuveen Asset Management has adopted certain compliance procedures which are designed to address these types of conflicts common among investment managers. However, there is no guarantee that such procedures will detect each and every situation in which a conflict arises.

ITEM 8(a)(3).FUND MANAGER COMPENSATION

As of the most recently completed fiscal year end, the primary Portfolio Manager’s compensation is as follows:

Portfolio managers are compensated through a combination of base salary and variable components consisting of (i) a cash bonus; (ii) a long-term performance award; and (iii) participation in a profits interest plan.

Base salary. A portfolio manager’s base salary is determined based upon an analysis of the portfolio manager’s general performance, experience and market levels of base pay for such position.

Cash bonus. A portfolio manager is eligible to receive an annual cash bonus that is based on three variables: risk-adjusted investment performance relative to benchmark generally measured over the most recent one, three and five year periods (unless the portfolio manager’s tenure is shorter), ranking versus Morningstar peer funds generally measured over the most recent one, three and five year periods (unless the portfolio manager’s tenure is shorter), and management and peer reviews.

Long-term performance award. A portfolio manager is eligible to receive a long-term performance award that vests after three years. The amount of the award when granted is based on the same factors used in determining the cash bonus. The value of the award at the completion of the three-year vesting period is adjusted based on the risk-adjusted investment performance of Fund(s) managed by the portfolio manager during the vesting period and the performance of the TIAA organization as a whole.

Profits interest plan. Portfolio managers are eligible to receive profits interests in Nuveen Asset Management and its affiliate, Teachers Advisors, LLC, which vest over time and entitle their holders to a percentage of the firms’ annual profits. Profits interests are allocated to each portfolio manager based on such person’s overall contribution to the firms.

There are generally no differences between the methods used to determine compensation with respect to the Fund and the Other Accounts shown in the table above.

ITEM 8(a)(4). OWNERSHIP OF NXC SECURITIES AS OF FEBRUARY 28, 2022

Name of Portfolio Manager

None

$1 - $10,000 $10,001-$50,000 $50,001-$100,000 $100,001-$500,000 $500,001-$1,000,000 Over $1,000,000
Scott R. Romans X            

 

ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.

 

Not applicable.

 

ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

 

There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s Board implemented after the registrant last provided disclosure in response to this Item.

 

ITEM 11. CONTROLS AND PROCEDURES.

 

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

 

(b)There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the 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. DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

 

Not applicable.

 

ITEM 13. 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 because the code is posted on registrant’s website at www.nuveen.com/fund-governance and there were no amendments during the period covered by this report. (To view the code, click on Code of Conduct.)

 

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

 

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

 

(a)(4)Change in the registrant’s independent public accountant. Not applicable.

 

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

 

SIGNATURES

 

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

(Registrant) Nuveen California Select Tax-Free Income Portfolio

 

By (Signature and Title) /s/ Mark L. Winget

Mark L. Winget

Vice President and Secretary

 

Date: May 6, 2022

 

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/ David J. Lamb

David J. Lamb

Chief Administrative Officer

(principal executive officer)

 

Date: May 6, 2022

 

By (Signature and Title) /s/ E. Scott Wickerham

E. Scott Wickerham

Vice President and Controller

(principal financial officer)

 

Date: May 6, 2022

 

 

 

 

 

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