nq2.htm



 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY
 
Investment Company Act file number 811-10197
 
Nuveen California Dividend Advantage Municipal Fund 2
(Exact name of registrant as specified in charter)
 
Nuveen Investments
        333 West Wacker Drive, Chicago, Illinois 60606         
(Address of principal executive offices) (Zip code)
 

Kevin J. McCarthy
Vice President and Secretary
        333 West Wacker Drive, Chicago, Illinois 60606         
(Name and address of agent for service)
 
Registrant's telephone number, including area code:         312-917-7700        
 
Date of fiscal year end:            2/29          
 
Date of reporting period:         11/30/15         
 
Form N-Q is to be used by management investment companies, other than small business investment companies registered on Form N-5 (§§ 239.24 and 274.5 of this chapter), to file reports with the Commission, not later than 60 days after the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use the information provided on Form N-Q in its regulatory, disclosure review, inspection, and policymaking roles.
 
A registrant is required to disclose the information specified by Form N-Q, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-Q unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to the Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

 
 
 

 
 
Item 1. Schedule of Investments
 
           
   
Portfolio of Investments
     
           
   
Nuveen California Dividend Advantage Municipal Fund 2 (NVX)
     
   
November 30, 2015 (Unaudited)
     
 
 
Principal
   
Optional Call
   
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
Value
   
LONG-TERM INVESTMENTS – 139.5% (99.5% of Total Investments)
     
           
   
MUNICIPAL BONDS – 139.5% (99.5% of Total Investments)
     
           
   
Consumer Staples – 8.0% (5.7% of Total Investments)
     
   
California County Tobacco Securitization Agency, Tobacco Settlement Asset-Backed Bonds,
     
   
Los Angeles County Securitization Corporation, Series 2006A:
     
$     2,000
 
5.600%, 6/01/36
12/18 at 100.00
B
$    1,981,960
2,000
 
5.650%, 6/01/41
12/18 at 100.00
B2
1,965,540
255
 
California County Tobacco Securitization Agency, Tobacco Settlement Asset-Backed Bonds,
12/15 at 100.00
BBB+
255,003
   
Sonoma County Tobacco Securitization Corporation, Series 2005, 4.250%, 6/01/21
     
1,995
 
California County Tobacco Securitization Agency, Tobacco Settlement Asset-Backed Bonds,
12/15 at 100.00
Baa1
1,995,140
   
Stanislaus County Tobacco Funding Corporation, Series 2002A, 5.500%, 6/01/33
     
   
Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed
     
   
Bonds, Series 2007A-1:
     
3,770
 
5.000%, 6/01/33
6/17 at 100.00
B
3,439,220
6,040
 
5.750%, 6/01/47
6/17 at 100.00
B
5,595,939
3,660
 
Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed
6/22 at 100.00
B
3,328,148
   
Bonds, Series 2007A-2, 5.300%, 6/01/37
     
19,720
 
Total Consumer Staples
   
18,560,950
   
Education and Civic Organizations – 2.8% (2.0% of Total Investments)
     
1,775
 
ABAG Finance Authority for Non-Profit Corporations, California, Revenue Bonds, The Jackson
7/22 at 100.00
A1
1,974,475
   
Laboratory, Series 2012, 5.000%, 7/01/37
     
555
 
California Municipal Finance Authority, Charter School Revenue Bonds, Rocketship Education
6/22 at 102.00
N/R
627,017
   
Multiple Projects, Series 2014A , 7.250%, 6/01/43
     
2,500
 
California Municipal Finance Authority, Revenue Bonds, University of La Verne, Series 2010A,
6/20 at 100.00
A–
2,857,850
   
6.250%, 6/01/40
     
850
 
California Statewide Communities Development Authority, School Facility Revenue Bonds,
7/21 at 100.00
BBB–
956,735
   
Alliance College-Ready Public Schools, Series 2011A, 7.000%, 7/01/46
     
5,680
 
Total Education and Civic Organizations
   
6,416,077
   
Health Care – 15.8% (11.3% of Total Investments)
     
570
 
California Health Facilities Financing Authority, California, Revenue Bonds, Sutter Health,
8/25 at 100.00
AA–
649,908
   
Refunding Series 2015A, 5.000%, 8/15/43
     
395
 
California Health Facilities Financing Authority, Revenue Bonds, Lucile Salter Packard
8/24 at 100.00
AA
444,490
   
Children’s Hospital, Series 2014A, 5.000%, 8/15/43
     
435
 
California Health Facilities Financing Authority, Revenue Bonds, Providence Health & Services,
10/24 at 100.00
AA
494,473
   
Series 2014A, 5.000%, 10/01/38
     
855
 
California Health Facilities Financing Authority, Revenue Bonds, Providence Health & Services,
10/24 at 100.00
AA
960,003
   
Series 2014B, 5.000%, 10/01/44
     
895
 
California Health Facilities Financing Authority, Revenue Bonds, Rady Children’s Hospital –
8/21 at 100.00
AA–
997,648
   
San Diego, Series 2011, 5.250%, 8/15/41
     
1,500
 
California Health Facilities Financing Authority, Revenue Bonds, Sutter Health, Series 2007A,
11/16 at 100.00
AA–
1,549,335
   
5.250%, 11/15/46
     
2,470
 
California Municipal Financing Authority, Certificates of Participation, Community Hospitals
2/17 at 100.00
A–
2,563,588
   
of Central California, Series 2007, 5.250%, 2/01/27
     
1,300
 
California Statewide Communities Development Authority, Revenue Bonds, Adventist Health
3/26 at 100.00
A
1,466,114
   
System/West, Series 2015A, 5.000%, 3/01/35
     
3,200
 
California Statewide Communities Development Authority, Revenue Bonds, Kaiser Permanente,
4/22 at 100.00
A+
3,572,544
   
Series 2012A, 5.000%, 4/01/42
     
5,245
 
California Statewide Community Development Authority, Revenue Bonds, Daughters of Charity
1/16 at 100.00
CCC
4,741,900
   
Health System, Series 2005A, 5.250%, 7/01/35
     
425
 
California Statewide Community Development Authority, Revenue Bonds, Kaiser Permanente
8/16 at 100.00
A+
437,045
   
System, Series 2001C, 5.250%, 8/01/31
     
1,035
 
California Statewide Community Development Authority, Revenue Bonds, Sutter Health, Series
8/18 at 100.00
AA
1,100,019
   
2004D, 5.050%, 8/15/38 – AGM Insured
     
1,610
 
Madera County, California, Certificates of Participation, Children’s Hospital Central
3/20 at 100.00
AA–
1,789,563
   
California, Series 2010, 5.375%, 3/15/36
     
455
 
Oak Valley Hospital District, Stanislaus County, California, Revenue Bonds, Series 2010A,
11/20 at 100.00
BB
477,946
   
6.500%, 11/01/29
     
1,500
 
Palomar Pomerado Health Care District, California, Certificates of Participation, Series 2009,
11/19 at 100.00
Ba1
1,654,920
   
6.625%, 11/01/29
     
4,800
 
Palomar Pomerado Health Care District, California, Certificates of Participation, Series 2010,
11/20 at 100.00
Ba1
5,101,296
   
6.000%, 11/01/41
     
5,785
 
Rancho Mirage Joint Powers Financing Authority, California, Revenue Bonds, Eisenhower Medical
7/17 at 100.00
Baa2
5,975,500
   
Center, Series 2007A, 5.000%, 7/01/38
     
2,250
 
San Buenaventura, California, Revenue Bonds, Community Memorial Health System, Series 2011,
12/21 at 100.00
BB+
2,739,600
   
7.500%, 12/01/41
     
34,725
 
Total Health Care
   
36,715,892
   
Housing/Multifamily – 1.4% (1.0% of Total Investments)
     
1,280
 
California Municipal Finance Authority, Mobile Home Park Revenue Bonds, Caritas Projects
8/20 at 100.00
BBB
1,437,402
   
Series 2010A, 6.400%, 8/15/45
     
410
 
California Municipal Finance Authority, Mobile Home Park Revenue Bonds, Caritas Projects
8/22 at 100.00
BBB
456,863
   
Series 2012A, 5.500%, 8/15/47
     
940
 
California Municipal Finance Authority, Mobile Home Park Revenue Bonds, Caritas Projects
8/22 at 100.00
A1
1,089,328
   
Series 2012B, 7.250%, 8/15/47
     
   
California Municipal Finance Authority, Mobile Home Park Senior Revenue Bonds, Caritas
     
   
Affordable Housing, Inc. Projects, Series 2014A:
     
80
 
5.250%, 8/15/39
8/24 at 100.00
BBB
89,788
220
 
5.250%, 8/15/49
8/24 at 100.00
BBB
246,096
2,930
 
Total Housing/Multifamily
   
3,319,477
   
Housing/Single Family – 3.2% (2.3% of Total Investments)
     
5,775
 
California Housing Finance Agency, California, Home Mortgage Revenue Bonds, Series 2006M,
2/16 at 100.00
A
5,777,310
   
4.650%, 8/01/31 (Alternative Minimum Tax)
     
1,490
 
California Housing Finance Agency, California, Home Mortgage Revenue Bonds, Series 2007G,
2/17 at 100.00
A
1,514,347
   
5.050%, 2/01/29 (Alternative Minimum Tax)
     
45
 
California Housing Finance Agency, Home Mortgage Revenue Bonds, Series 2006H, 5.750%,
2/16 at 100.00
A
45,788
   
8/01/30 – FGIC Insured (Alternative Minimum Tax)
     
7,310
 
Total Housing/Single Family
   
7,337,445
   
Industrials – 0.0% (0.0% of Total Investments)
     
3,175
 
California Statewide Communities Development Authority, Revenue Bonds, EnerTech Regional
No Opt. Call
N/R
10,001
   
Biosolids Project, Series 2007A, 5.500%, 12/01/33 (Alternative Minimum Tax) (4)
     
   
Tax Obligation/General – 32.8% (23.4% of Total Investments)
     
1,300
 
Alhambra Unified School District, Los Angeles County, California, General Obligation Bonds,
8/22 at 100.00
Aa3
1,511,549
   
Refunding Series 2012A, 5.000%, 8/01/29 – AGM Insured
     
4,000
 
California State, General Obligation Bonds, Various Purpose Refunding Series 2014,
8/24 at 100.00
AA–
4,683,120
   
5.000%, 8/01/31
     
   
California State, General Obligation Bonds, Various Purpose Refunding Series 2015:
     
675
 
5.000%, 8/01/32
2/25 at 100.00
AA–
793,139
2,000
 
5.000%, 8/01/34
8/25 at 100.00
AA–
2,350,020
13,850
 
California State, General Obligation Bonds, Various Purpose Series 2009, 6.000%, 4/01/38
4/19 at 100.00
AA–
16,146,189
   
California State, General Obligation Bonds, Various Purpose Series 2010:
     
2,000
 
6.000%, 3/01/33
3/20 at 100.00
AA–
2,402,340
1,000
 
5.250%, 11/01/40
11/20 at 100.00
AA–
1,166,330
   
California State, General Obligation Bonds, Various Purpose Series 2011:
     
4,850
 
5.250%, 10/01/28
No Opt. Call
AA–
5,758,163
2,300
 
5.000%, 9/01/41
9/21 at 100.00
AA–
2,591,778
2,190
 
5.000%, 10/01/41
10/21 at 100.00
AA–
2,471,568
   
California State, General Obligation Bonds, Various Purpose Series 2013:
     
2,500
 
5.000%, 2/01/43
No Opt. Call
AA–
2,834,075
2,240
 
5.000%, 11/01/43
11/23 at 100.00
AA–
2,567,264
   
California State, General Obligation Bonds, Various Purpose Series 2014:
     
2,000
 
5.000%, 5/01/32
5/24 at 100.00
AA–
2,324,700
1,815
 
5.000%, 10/01/44
10/24 at 100.00
AA–
2,076,669
32,730
 
Desert Community College District, Riverside County, California, General Obligation Bonds,
No Opt. Call
AA
6,598,041
   
Election 2004 Series 2007C, 0.000%, 8/01/46 – AGM Insured
     
1,285
 
Los Angeles Unified School District, Los Angeles County, California, General Obligation Bonds,
7/19 at 100.00
Aa2
1,457,653
   
Series 2009D, 5.000%, 7/01/27
     
1,265
 
Palomar Pomerado Health, California, General Obligation Bonds, Capital Appreciation, Election
8/17 at 100.00
AA–
1,332,652
   
of 2004, Series 2007A, 5.000%, 8/01/32 – NPFG Insured
     
10,330
 
Palomar Pomerado Health, California, General Obligation Bonds, Convertible Capital
No Opt. Call
A+
4,268,046
   
Appreciation, Election 2004 Series 2010A, 0.000%, 8/01/35
     
2,000
 
Paramount Unified School District, Los Angeles County, California, General Obligation Bonds,
No Opt. Call
A+
1,722,260
   
Election 2006 Series 2011, 0.000%, 8/01/45
     
2,000
 
Puerto Rico, General Obligation Bonds, Public Improvement Series 2002A, 5.500%, 7/01/20 –
No Opt. Call
AA–
2,038,380
   
NPFG Insured
     
1,425
 
San Joaquin Delta Community College District, California, General Obligation Bonds, Refunding
8/25 at 100.00
Aa2
1,680,973
   
Series 2015A, 5.000%, 8/01/32
     
21,000
 
San Marcos Unified School District, San Diego County, California, General Obligation Bonds,
No Opt. Call
AA–
4,426,170
   
2010 Election, Series 2012B, 0.000%, 8/01/51
     
1,000
 
Southwestern Community College District, San Diego County, California, General Obligation
8/21 at 100.00
Aa2
1,135,430
   
Bonds, Election of 2008, Series 2011C, 5.250%, 8/01/36
     
1,600
 
Yuba Community College District, California, General Obligation Bonds, Election 2006 Series
8/21 at 100.00
Aa2
1,867,744
   
2011C, 5.250%, 8/01/47
     
117,355
 
Total Tax Obligation/General
   
76,204,253
   
Tax Obligation/Limited – 27.1% (19.3% of Total Investments)
     
7,000
 
California State Public Works Board, Lease Revenue Bonds, Department of Corrections &
9/23 at 100.00
A+
8,316,209
   
Rehabilitation, Various Correctional Facilities Series 2013F, 5.250%, 9/01/31
     
3,525
 
California State Public Works Board, Lease Revenue Bonds, Department of Corrections &
9/24 at 100.00
A+
4,034,821
   
Rehabilitation, Various Correctional Facilities Series 2014A, 5.000%, 9/01/39
     
3,770
 
California State Public Works Board, Lease Revenue Bonds, Various Capital Projects, Series
11/22 at 100.00
A+
4,290,901
   
2012G, 5.000%, 11/01/37
     
4,520
 
California State Public Works Board, Lease Revenue Bonds, Various Capital Projects, Series
9/24 at 100.00
A+
5,173,728
   
2014E, 5.000%, 9/01/39
     
960
 
Fontana Redevelopment Agency, San Bernardino County, California, Tax Allocation Bonds,
4/16 at 100.00
A
969,715
   
Jurupa Hills Redevelopment Project, Refunding Series 1997A, 5.500%, 10/01/27
     
10,000
 
Golden State Tobacco Securitization Corporation, California, Enhanced Tobacco Settlement
6/25 at 100.00
A+
11,220,899
   
Asset-Backed Revenue Bonds, Series 2015A, 5.000%, 6/01/45
     
1,785
 
Hawthorne Community Redevelopment Agency, California, Tax Allocation Bonds, Project Area 2,
9/16 at 100.00
N/R
1,813,792
   
Series 2006, 5.250%, 9/01/36 – SYNCORA GTY Insured
     
1,800
 
Hesperia Unified School District, San Bernardino County, California, Certificates of Participation,
2/17 at 100.00
A–
1,871,334
   
Capital Improvement, Series 2007, 5.000%, 2/01/41 – AMBAC Insured
     
1,500
 
Hesperia Unified School District, San Bernardino County, California, Certificates of
2/23 at 100.00
AA
1,633,560
   
Participation, Series 2013A, 5.000%, 2/01/38 – BAM Insured
     
870
 
Inglewood Redevelopment Agency, California, Tax Allocation Bonds, Merged Redevelopment
5/17 at 100.00
BBB+
894,395
   
Project, Subordinate Lien Series 2007A-1, 5.000%, 5/01/23 – AMBAC Insured
     
   
Irvine Unified School District, California, Special Tax Bonds, Community Facilities District
     
   
Series 2006A:
     
205
 
5.000%, 9/01/26
9/16 at 100.00
N/R
208,579
470
 
5.125%, 9/01/36
9/16 at 100.00
N/R
477,515
1,000
 
Lake Elsinore Public Financing Authority, California, Local Agency Revenue Bonds, Refunding
9/25 at 100.00
N/R
1,069,470
   
Series 2015, 5.000%, 9/01/40
     
415
 
Lammersville School District, San Joaquin County, California, Special Tax Bonds, Community
9/16 at 100.00
N/R
422,391
   
Facilities District 2002 Mountain House, Series 2006, 5.125%, 9/01/35
     
800
 
Los Angeles Community Redevelopment Agency, California, Lease Revenue Bonds, Manchester
3/16 at 100.00
A1
801,368
   
Social Services Project, Series 2005, 5.000%, 9/01/37 – AMBAC Insured
     
1,350
 
Los Angeles County Public Works Financing Authority, California, Lease Revenue Bonds, Multiple
No Opt. Call
AA
1,523,948
   
Capital Facilities Project II, Series 2012, 5.000%, 8/01/42
     
750
 
Lynwood Redevelopment Agency, California, Project A Revenue Bonds, Subordinate Lien Series
9/21 at 100.00
A–
931,575
   
2011A, 7.000%, 9/01/31
     
475
 
National City Community Development Commission, California, Tax Allocation Bonds, National
8/21 at 100.00
A–
591,708
   
City Redevelopment Project, Series 2011, 6.500%, 8/01/24
     
175
 
Novato Redevelopment Agency, California, Tax Allocation Bonds, Hamilton Field Redevelopment
9/21 at 100.00
BBB+
211,587
   
Project, Series 2011, 6.750%, 9/01/40
     
195
 
Patterson Public Finance Authority, California, Revenue Bonds, Community Facilities District
9/23 at 100.00
N/R
210,231
   
2001-1, Subordinate Lien Series 2013B , 5.875%, 9/01/39
     
   
Patterson Public Financing Authority, California, Revenue Bonds, Community Facilities District
     
   
2001-1, Senior Series 2013A:
     
1,195
 
5.250%, 9/01/30
9/23 at 100.00
N/R
1,288,688
1,080
 
5.750%, 9/01/39
9/23 at 100.00
N/R
1,172,102
3,085
 
Pittsburg Redevelopment Agency, California, Tax Allocation Bonds, Los Medanos Community
9/18 at 100.00
BBB–
3,364,655
   
Development Project, Refunding Series 2008A, 6.500%, 9/01/28
     
6,275
 
Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, Series 2007A, 0.000%,
No Opt. Call
AA–
933,846
   
8/01/45 – NPFG Insured
     
550
 
Rancho Santa Fe CSD Financing Authority, California, Revenue Bonds, Superior Lien Series
9/21 at 100.00
BBB+
625,603
   
2011A, 5.750%, 9/01/30
     
100
 
Riverside County Redevelopment Agency, California, Tax Allocation Bonds, Jurupa Valley Project
10/21 at 100.00
A
122,827
   
Area, Series 2011B, 6.500%, 10/01/25
     
225
 
Roseville, California, Special Tax Bonds, Community Facilities District 1 Westpark, Refunding
9/25 at 100.00
N/R
241,130
   
Series 2015, 5.000%, 9/01/37
     
   
San Buenaventura Redevelopment Agency, California, Merged Project Areas Tax Allocation Bonds,
     
   
Series 2008:
     
1,000
 
7.750%, 8/01/28
8/16 at 102.00
A
1,062,470
1,325
 
8.000%, 8/01/38
8/16 at 102.00
A
1,409,204
60
 
San Clemente, California, Special Tax Revenue Bonds, Community Facilities District 2006-1
9/25 at 100.00
N/R
64,415
   
Marblehead Coastal, Series 2015, 5.000%, 9/01/40 (WI/DD, Settling 12/03/15)
     
990
 
San Diego, California, Special Tax Bonds, Community Facilities District 4 Black Mountain Ranch
3/16 at 100.00
N/R
1,024,977
   
Villages, Series 2008A, 6.000%, 9/01/37
     
210
 
San Francisco City and County Redevelopment Agency Successor Agency, California, Special Tax
No Opt. Call
N/R
222,625
   
Bonds, Community Facilities District 7, Hunters Point Shipyard Phase One Improvements,
     
   
Refunding Series 2014, 5.000%, 8/01/39
     
80
 
San Francisco Redevelopment Finance Authority, California, Tax Allocation Revenue Bonds,
2/21 at 100.00
A–
96,636
   
Mission Bay North Redevelopment Project, Series 2011C, 6.750%, 8/01/41
     
   
San Francisco Redevelopment Financing Authority, California, Tax Allocation Revenue Bonds,
     
   
Mission Bay South Redevelopment Project, Series 2011D:
     
85
 
7.000%, 8/01/33
2/21 at 100.00
BBB+
102,190
105
 
7.000%, 8/01/41
2/21 at 100.00
BBB+
126,235
995
 
San Jose Redevelopment Agency, California, Tax Allocation Bonds, Merged Area Redevelopment
8/17 at 100.00
BBB+
1,050,680
   
Project, Refunding Series 2006D, 5.000%, 8/01/23 – AMBAC Insured
     
   
San Jose Redevelopment Agency, California, Tax Allocation Bonds, Merged Area Redevelopment
     
   
Project, Series 2006C:
     
1,100
 
5.000%, 8/01/24 – NPFG Insured
8/17 at 100.00
AA–
1,168,321
765
 
5.000%, 8/01/25 – NPFG Insured
8/17 at 100.00
AA–
810,938
140
 
Signal Hill Redevelopment Agency, California, Project 1 Tax Allocation Bonds, Series 2011,
4/21 at 100.00
N/R
158,144
   
7.000%, 10/01/26
     
930
 
Temecula Public Financing Authority, California, Special Tax Bonds, Community Facilities
3/16 at 100.00
N/R
930,391
   
District 03-02 Roripaugh, Series 2006, 5.500%, 9/01/36
     
240
 
Yorba Linda Redevelopment Agency, Orange County, California, Tax Allocation Revenue Bonds,
9/21 at 100.00
A–
291,703
   
Yorba Linda Redevelopment Project, Subordinate Lien Series 2011A, 6.500%, 9/01/32
     
62,100
 
Total Tax Obligation/Limited
   
62,935,506
   
Transportation – 15.5% (11.1% of Total Investments)
     
2,000
 
Bay Area Toll Authority, California, Revenue Bonds, San Francisco Bay Area Toll Bridge, Series
4/23 at 100.00
AA–
2,279,160
   
2013S-4, 5.250%, 4/01/48
     
2,240
 
Foothill/Eastern Transportation Corridor Agency, California, Toll Road Revenue Bonds,
1/24 at 100.00
BB+
2,653,235
   
Refunding Junior Lien Series 2013C, 6.500%, 1/15/43
     
   
Foothill/Eastern Transportation Corridor Agency, California, Toll Road Revenue Bonds,
     
   
Refunding Series 2013A:
     
4,940
 
5.750%, 1/15/46
1/24 at 100.00
BBB–
5,738,897
4,935
 
6.000%, 1/15/53
1/24 at 100.00
BBB–
5,762,698
   
Los Angeles Department of Airports, California, Revenue Bonds, Los Angeles International
     
   
Airport, Senior Lien Series 2015D:
     
870
 
5.000%, 5/15/31 (Alternative Minimum Tax)
5/25 at 100.00
AA
1,008,469
3,810
 
5.000%, 5/15/33 (Alternative Minimum Tax)
5/25 at 100.00
AA
4,365,841
1,000
 
5.000%, 5/15/36 (Alternative Minimum Tax)
5/25 at 100.00
AA
1,136,270
4,000
 
Los Angeles Harbors Department, California, Revenue Bonds, Refunding Series 2014B,
8/24 at 100.00
AA
4,560,680
   
5.000%, 8/01/44
     
   
Port of Oakland, California, Revenue Bonds, Refunding Series 2012P:
     
1,545
 
5.000%, 5/01/29 (Alternative Minimum Tax)
No Opt. Call
A+
1,755,074
1,000
 
5.000%, 5/01/31 (Alternative Minimum Tax)
No Opt. Call
A+
1,127,170
1,000
 
Riverside County Transportation Commission, California, Toll Revenue Senior Lien Bonds, Series
6/23 at 100.00
BBB–
1,139,560
   
2013A, 5.750%, 6/01/44
     
4,000
 
San Diego County Regional Airport Authority, California, Airport Revenue Bonds, Senior Series
7/23 at 100.00
A+
4,393,800
   
2013B, 5.000%, 7/01/43 (Alternative Minimum Tax)
     
31,340
 
Total Transportation
   
35,920,854
   
U.S. Guaranteed – 9.4% (6.7% of Total Investments) (5)
     
1,930
 
Bay Area Toll Authority, California, Revenue Bonds, San Francisco Bay Area Toll Bridge, Series
4/16 at 100.00
AA (5)
1,961,131
   
2006F, 5.000%, 4/01/31 (Pre-refunded 4/01/16) (UB)
     
1,430
 
Bay Area Toll Authority, California, Revenue Bonds, San Francisco Bay Area Toll Bridge, Tender
4/18 at 100.00
AA (5)
1,965,220
   
Option Bond Trust 3211, 13.558%, 10/01/32 (Pre-refunded 4/01/18) (IF)
     
1,745
 
California Municipal Financing Authority, Certificates of Participation, Community Hospitals
2/17 at 100.00
N/R (5)
1,839,928
   
of Central California, Series 2007, 5.250%, 2/01/27 (Pre-refunded 2/01/17)
     
2,945
 
California State Public Works Board, Lease Revenue Bonds, University of California Regents,
3/18 at 100.00
Aaa
3,493,712
   
Tender Option Bond Trust 1065, 9.404%, 3/01/33 (Pre-refunded 3/01/18) (IF)
     
2,225
 
California Statewide Communities Development Authority, Revenue Bonds, ValleyCare Health
7/17 at 100.00
AA+ (5)
2,386,023
   
System, Series 2007A, 5.125%, 7/15/31 (Pre-refunded 7/15/17)
     
1,400
 
Castaic Lake Water Agency, California, Certificates of Participation, Series 2006C, 5.000%,
8/16 at 100.00
AA– (5)
1,444,086
   
8/01/36 (Pre-refunded 8/01/16) – NPFG Insured
     
545
 
Healdsburg Public Financing Authority, California, Wastewater Revenue Bonds, Series 2006,
4/16 at 100.00
AA (5)
553,764
   
5.000%, 4/01/36 (Pre-refunded 4/01/16) – NPFG Insured
     
205
 
Independent Cities Lease Finance Authority, California, Mobile Home Park Revenue Bonds, San
5/16 at 100.00
N/R (5)
210,244
   
Juan Mobile Estates, Series 2006B, 5.850%, 5/15/41 (Pre-refunded 5/15/16)
     
2,000
 
Loma Linda, California, Hospital Revenue Bonds, Loma Linda University Medical Center, Series
12/17 at 100.00
BB+ (5)
2,299,640
   
2008A, 8.250%, 12/01/38 (Pre-refunded 12/01/17)
     
2,000
 
Puerto Rico Public Finance Corporation, Commonwealth Appropriation Bonds, Series 2002E,
No Opt. Call
CC (5)
2,672,820
   
6.000%, 8/01/26 (ETM)
     
750
 
Sacramento County Sanitation Districts Financing Authority, California, Revenue Bonds, Series
6/16 at 100.00
AA (5)
767,903
   
2006, 5.000%, 12/01/31 (Pre-refunded 6/01/16) – FGIC Insured
     
825
 
San Mateo Union High School District, San Mateo County, California, Certificates of Participation,
12/17 at 100.00
N/R (5)
896,808
   
Phase 1, Series 2007A, 5.000%, 12/15/30 (Pre-refunded 12/15/17) – AMBAC Insured
     
1,315
 
University of California, Limited Project Revenue Bonds, Series 2007D, 5.000%, 5/15/41
5/16 at 101.00
AA– (5)
1,356,409
   
(Pre-refunded 5/15/16) – FGIC Insured
     
19,315
 
Total U.S. Guaranteed
   
21,847,688
   
Utilities – 10.8% (7.7% of Total Investments)
     
2,355
 
Long Beach Bond Finance Authority, California, Natural Gas Purchase Revenue Bonds, Series
No Opt. Call
A
2,708,344
   
2007A, 5.000%, 11/15/35
     
14,000
 
Los Angeles Department of Water and Power, California, Power System Revenue Bonds, Series
7/22 at 100.00
AA–
15,886,639
   
2012B, 5.000%, 7/01/43
     
1,500
 
Southern California Public Power Authority, California, Revenue Bonds, Apex Power Project
7/24 at 100.00
AA–
1,725,570
   
Series 2014A, 5.000%, 7/01/38
     
4,000
 
Southern California Public Power Authority, Natural Gas Project 1 Revenue Bonds, Series 2007A,
No Opt. Call
A
4,636,640
   
5.000%, 11/01/33
     
21,855
 
Total Utilities
   
24,957,193
   
Water and Sewer – 12.7% (9.0% of Total Investments)
     
5,240
 
California Pollution Control Financing Authority, Water Furnishing Revenue Bonds, Poseidon
No Opt. Call
Baa3
5,554,610
   
Resources Channelside LP Desalination Project, Series 2012, 5.000%, 11/21/45 (Alternative
     
   
Minimum Tax)
     
1,400
 
East Bay Municipal Utility District, Alameda and Contra Costa Counties, California, Water
6/25 at 100.00
AAA
1,690,472
   
System Revenue Bonds, Refunding Series 2015A, 5.000%, 6/01/31
     
4,265
 
Escondido Joint Powers Financing Authority, California, Revenue Bonds, Water System Financing,
3/22 at 100.00
AA–
4,811,048
   
Series 2012, 5.000%, 9/01/41
     
7,890
 
Los Angeles Department of Water and Power, California, Waterworks Revenue Bonds, Series
7/24 at 100.00
AA
9,063,558
   
2014A, 5.000%, 7/01/44
     
1,160
 
Metropolitan Water District of Southern California, Waterworks Revenue Bonds, Tender Option
7/19 at 100.00
AAA
1,751,832
   
Bond Trust 09-8B, 17.633%, 7/01/35 (IF) (6)
     
5,825
 
Sacramento, California, Wastewater Revenue Bonds, Series 2013, 5.000%, 9/01/42
9/23 at 100.00
AA
6,535,302
25,780
 
Total Water and Sewer
   
29,406,822
$ 351,285
 
Total Long-Term Investments (cost $298,432,660)
   
323,632,158
 
Principal
   
Optional Call
   
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
Value
   
SHORT-TERM INVESTMENTS – 0.7% (0.5% of Total Investments)
     
           
   
MUNICIPAL BONDS – 0.7% (0.5% of Total Investments)
     
           
   
Health Care – 0.7% (0.5% of Total Investments)
     
$     1,320
 
California Statewide Community Development Authority, Revenue Bonds, Daughters of Charity
No Opt. Call
N/R
$    1,321,042
   
Health System, Series 2014A, 6.000%, 12/15/15 (7)
     
125
 
California Statewide Community Development Authority, Revenue Bonds, Daughters of Charity
No Opt. Call
N/R
125,099
   
Health System, Series 2014B, 6.000%, 12/15/15 (7)
     
200
 
California Statewide Community Development Authority, Revenue Bonds, Daughters of Charity
No Opt. Call
N/R
200,158
   
Health System, Series 2014C, 6.000%, 12/15/15 (7)
     
$     1,645
 
Total Short-Term Investments (cost $1,645,000)
   
1,646,299
   
Total Investments (cost $300,077,660) – 140.2%
   
325,278,457
   
Floating Rate Obligations – (0.4)%
   
(965,000)
   
Variable Rate Demand Preferred Shares, at Liquidation Value – (42.2)% (8)
   
(98,000,000)
   
Other Assets Less Liabilities – 2.4%
   
5,720,413
   
Net Assets Applicable to Common Shares – 100%
   
$ 232,033,870
 
 
 

 
 
 
Fair Value Measurements
 
Fair value is defined as the price that would be received upon selling an investment or transferring a liability in an orderly transaction to an independent buyer in the principal or most advantageous market for the investment. A three-tier hierarchy is used to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability. Observable inputs are based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability. Unobservable inputs are based on the best information available in the circumstances. The following is a summary of the three-tiered hierarchy of valuation input levels.
 
Level 1 – Inputs are unadjusted and prices are determined using quoted prices in active markets for identical securities.
 
Level 2 – Prices are determined using other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
 
Level 3 – Prices are determined using significant unobservable inputs (including management’s assumptions in determining the fair value of investments).
 
The inputs or methodologies used for valuing securities are not an indication of the risks associated with investing in those securities. The following is a summary of the Fund’s fair value measurements as of the end of the reporting period:
         
 
Level 1
Level 2
Level 3
Total
Long-Term Investments:
       
Municipal Bonds
$ —
$323,632,158
$           —
$323,632,158
Short-Term Investments:
       
Municipal Bonds
1,646,299
1,646,299
Total
$ —
$323,632,158
$1,646,299
$325,278,457
 
 
Income Tax Information
 
The following information is presented on an income tax basis. Differences between amounts for financial statement and federal income tax purposes are primarily due to timing differences in recognizing taxable market discount, timing differences in recognizing certain gains and losses on investment transactions and the treatment of investments in inverse floating rate securities reflected as financing transactions, if any. To the extent that differences arise that are permanent in nature, such amounts are reclassified within the capital accounts on the Statement of Assets and Liabilities presented in the annual report, based on their federal tax basis treatment; temporary differences do not require reclassification. Temporary and permanent differences do not impact the net asset value of the Fund.
 
As of November 30, 2015, the cost of investments was $299,269,863.
 
Gross unrealized appreciation and gross unrealized depreciation of investments as of November 30, 2015, were as follows:
   
Gross unrealized:
 
Appreciation
$29,108,534
Depreciation
(4,064,940)
Net unrealized appreciation (depreciation) of investments
$25,043,594
 
     
(1)
 
All percentages shown in the Portfolio of Investments are based on net assets applicable to common
   
shares unless otherwise noted.
(2)
 
Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption.
   
There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities
   
may be subject to periodic principal paydowns.
(3)
 
Ratings: Using the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investors Service,
   
Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. Ratings below BBB by Standard & Poor’s, Baa by Moody’s
   
or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by
   
any of these national rating agencies.
(4)
 
As of, or subsequent to, the end of the reporting period this security is non-income producing. Non-income
   
producing, in the case of a fixed-income security, generally denotes that the issuer has (1) defaulted on
   
the payment of principal or interest, (2) is under the protection of the Federal Bankruptcy Court or (3) the
   
Fund’s Adviser has concluded that the issue is not likely to meet its future interest payment obligations
   
and has ceased accruing additional income on the Fund’s records.
(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. Certain bonds backed by U.S. Government or
   
agency securities are regarded as having an implied rating equal to the rating of such securities.
(6)
 
Investment, or portion of investment, has been pledged to collateralize the net payment obligations for
   
investments in inverse floating rate transactions.
(7)
 
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.
(8)
 
Variable Rate Demand Preferred Shares, at Liquidation Value as a percentage of Total Investments is 30.1%.
ETM
 
Escrowed to maturity.
(WI/DD)
 
Investment, or portion of investment, purchased on a when-issued or delayed delivery basis.
(IF)
 
Inverse floating rate investment.
(UB)
 
Underlying bond of an inverse floating rate trust reflected as a financing transaction.
 
 
 

 
 
Item 2. Controls and Procedures.

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

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

 
 
 

 
 
SIGNATURES

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