Nuveen California Quality Income Municipal Fund to sell shares

By Toni Weeks

San Luis Obispo, Calif., June 6 - The Nuveen California Quality Income Municipal Fund, Inc. announced in a 497 filing with the Securities and Exchange Commission that it plans to conduct an offering of its common shares. The shares will be offered through at-the-market transactions via one or more broker-dealers, by an underwriting syndicate or through privately negotiated transactions.

The diversified, closed-end management investment company seeks to provide current income exempt from both regular federal and California income taxes. The fund's secondary objective is to enhance portfolio value relative to the California municipal bond market by investing in underrated or undervalued tax-exempt California municipal securities or those that represent municipal market sectors that are undervalued.

Under normal circumstances, the fund invests at least 80% of its managed assets in securities that are rated investment grade at the time of purchase. Managed assets are the total assets of the fund, minus the sum of its accrued liabilities. The fund will generally invest in municipal securities with long-term maturities in order to maintain a weighted average maturity of 15 to 30 years.

Scott R. Romans is the portfolio manager of the fund.

The fund plans to offer 2.2 million common shares. The fund's common shares (NYSE: NUC) closed at $16.86 on May 22.

Shareholder fees include a 4% maximum sales charge. Annual expenses of 1.57% include a 0.91% management fee.

Chicago-based Nuveen Fund Advisors, LLC is the fund's investment adviser.

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