Nuveen North Carolina Quality Municipal Income Fund

 

 

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 811-07608

Nuveen North Carolina Quality Municipal Income Fund

(Exact name of registrant as specified in charter)

Nuveen Investments

    333 West Wacker Drive, Chicago, Illinois 60606    

(Address of principal executive offices) (Zip code)

Gifford R. Zimmerman

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:       May 31      

Date of reporting period: February 28, 2019

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

 

 

NNC
Nuveen North Carolina Quality Municipal Income Fund
Portfolio of Investments    February 28, 2019
(Unaudited)
Principal Amount (000)   Description (1)   Optional Call Provisions (2) Ratings (3) Value
    LONG-TERM INVESTMENTS – 165.8% (100.0% of Total Investments)        
    MUNICIPAL BONDS – 165.8% (100.0% of Total Investments)        
    Education and Civic Organizations – 29.4% (17.7% of Total Investments)        
    Board of Governors of the University of North Carolina, Winston-Salem State University General Revenue Bonds, Series 2013:        
$ 2,950   5.000%, 4/01/33   4/22 at 100.00 A3 $3,175,586
1,000   5.125%, 4/01/43   4/22 at 100.00 A3 1,071,250
2,500   Colorado State Board of Governors, Colorado State University Auxiliary Enterprise System Revenue Bonds, Refunding Series 2017E, 4.000%, 3/01/43   3/28 at 100.00 AA 2,584,350
5,000   East Carolina University, North Carolina, General Revenue Bonds, Series 2014A, 5.000%, 10/01/41   10/23 at 100.00 Aa2 5,556,250
2,310   East Carolina University, North Carolina, General Revenue Bonds, Series 2016A, 5.000%, 10/01/29   4/26 at 100.00 Aa2 2,727,971
1,500   Fayetteville State University, North Carolina, Limited Obligation Revenue Bonds, Student Housing Project, Series 2011, 5.000%, 4/01/43  –  AGM Insured   4/21 at 100.00 AA 1,574,895
    North Carolina Capital Facilities Finance Agency, Revenue Bonds, Davidson College, Series 2014:        
500   5.000%, 3/01/26   3/22 at 100.00 AA+ 546,815
250   5.000%, 3/01/28   3/22 at 100.00 AA+ 272,260
500   5.000%, 3/01/29   3/22 at 100.00 AA+ 544,520
500   5.000%, 3/01/32   3/22 at 100.00 AA+ 542,850
1,230   5.000%, 3/01/45   3/22 at 100.00 AA+ 1,323,160
3,900   North Carolina Capital Facilities Finance Agency, Revenue Bonds, Duke University Project, Refunding Series 2016B, 5.000%, 7/01/42   10/26 at 100.00 AA+ 4,473,495
1,605   North Carolina Capital Facilities Finance Agency, Revenue Bonds, Duke University Project, Series 2015 A, 5.000%, 10/01/55   10/25 at 100.00 AA+ 1,805,224
    North Carolina Capital Facilities Finance Agency, Revenue Bonds, Johnson & Wales University, Series 2013A:        
1,560   5.000%, 4/01/32   4/23 at 100.00 A- 1,657,438
1,000   5.000%, 4/01/33   4/23 at 100.00 A- 1,060,110
5,000   North Carolina Capital Facilities Financing Agency, Educational Facility Revenue Bonds, Wake Forest University, Refunding Series 2016, 4.000%, 1/01/37   7/26 at 100.00 AA 5,300,500
2,500   North Carolina Capital Facilities Financing Agency, Educational Facility Revenue Bonds, Wake Forest University, Refunding Series 2018, 5.000%, 1/01/48   1/28 at 100.00 AA 2,859,925
4,440   North Carolina Captial Facilities Finance Agency, Revenue Bonds, The Methodist Univerity, Series 2012, 5.000%, 3/01/34   3/22 at 100.00 BBB 4,612,228
2,020   North Carolina State University at Raleigh, General Revenue Bonds, Series 2013A, 5.000%, 10/01/42   10/23 at 100.00 Aa1 2,258,643
290   University of North Carolina System, Pooled Revenue Bonds, Series 2005A, 5.000%, 4/01/22  –  AMBAC Insured   3/19 at 100.00 A 290,734
1

NNC Nuveen North Carolina Quality Municipal Income Fund (continued)
  Portfolio of Investments February 28, 2019
  (Unaudited)
Principal Amount (000)   Description (1)   Optional Call Provisions (2) Ratings (3) Value
    Education and Civic Organizations (continued)        
$ 800   University of North Carolina, Charlotte, General Revenue Bonds, Refunding Series 2015, 5.000%, 4/01/45   4/25 at 100.00 Aa3 $909,016
170   University of North Carolina, Charlotte, General Revenue Bonds, Refunding Series 2017A, 5.000%, 10/01/31   10/27 at 100.00 Aa3 201,741
    University of North Carolina, Charlotte, General Revenue Bonds, Series 2014:        
2,070   5.000%, 4/01/32   4/24 at 100.00 Aa3 2,336,595
1,175   5.000%, 4/01/33   4/24 at 100.00 Aa3 1,325,729
1,385   5.000%, 4/01/35   4/24 at 100.00 Aa3 1,561,241
4,735   University of North Carolina, Charlotte, General Revenue Bonds, Series 2017, 5.000%, 10/01/42   10/27 at 100.00 Aa3 5,416,840
1,415   University of North Carolina, Greensboro, General Revenue Bonds, Refunding Series 2017, 5.000%, 4/01/31   4/28 at 100.00 Aa3 1,698,509
    University of North Carolina, Greensboro, General Revenue Bonds, Series 2014:        
1,000   5.000%, 4/01/32   4/24 at 100.00 Aa3 1,139,070
3,065   5.000%, 4/01/39   4/24 at 100.00 Aa3 3,464,431
4,765   University of North Carolina, Greensboro, General Revenue Bonds, Series 2018, 5.000%, 4/01/43   4/28 at 100.00 Aa3 5,472,364
1,250   Western Carolina University, North Carolina, General Revenue Bonds, Refunding Series 2015A, 5.000%, 10/01/45   10/25 at 100.00 Aa3 1,417,950
62,385   Total Education and Civic Organizations       69,181,690
    Health Care – 24.7% (14.9% of Total Investments)        
2,000   Charlotte-Mecklenberg Hospital Authority, North Carolina, Health Care Revenue Bonds, DBA Carolinas HealthCare System, Series 2011A, 5.250%, 1/15/42   1/21 at 100.00 AA- 2,114,820
5,250   Charlotte-Mecklenburg Hospital Authority, North Carolina, Health Care Revenue Bonds, DBA Carolinas HealthCare System, Refunding Series 2012A, 5.000%, 1/15/43   1/22 at 100.00 AA- 5,629,732
4,295   Nash Health Care Systems, North Carolina, Health Care Facilities Revenue Bonds, Series 2012, 5.000%, 11/01/41   5/22 at 100.00 BBB 4,537,753
500   New Hanover County, North Carolina, Hospital Revenue Bonds, New Hanover Regional Medical Center, Refunding Series 2013, 5.000%, 10/01/26   10/23 at 100.00 A+ 561,660
2,700   New Hanover County, North Carolina, Hospital Revenue Bonds, New Hanover Regional Medical Center, Series 2017, 5.000%, 10/01/47   10/27 at 100.00 A+ 2,977,209
    North Carolina Medical Care Commission Health Care Facilities Revenue Bonds Novant Health Inc., Series 2010A:        
4,750   5.250%, 11/01/40   11/20 at 100.00 Aa3 5,002,890
5,000   5.000%, 11/01/43   11/20 at 100.00 Aa3 5,223,350
2,750   North Carolina Medical Care Commission, Health Care Facilities Revenue Bonds, Blue Ridge HealthCare, Refunding Series 2010A, 5.000%, 1/01/36   1/20 at 100.00 A 2,805,028
2,375   North Carolina Medical Care Commission, Health Care Facilities Revenue Bonds, Cape Fear Valley Health System, Refunding Series 2012A, 5.000%, 10/01/27   10/22 at 100.00 A- 2,588,370
1,250   North Carolina Medical Care Commission, Health Care Facilities Revenue Bonds, Duke University Health System, Refunding Series 2016D, 5.000%, 6/01/29   6/26 at 100.00 AA 1,478,875
2,000   North Carolina Medical Care Commission, Health Care Facilities Revenue Bonds, Duke University Health System, Series 2012A, 5.000%, 6/01/42   6/22 at 100.00 AA 2,172,420
2

Principal Amount (000)   Description (1)   Optional Call Provisions (2) Ratings (3) Value
    Health Care (continued)        
$ 2,000   North Carolina Medical Care Commission, Health Care Facilities Revenue Bonds, Rex Healthcare, Series 2015A, 5.000%, 7/01/44   7/25 at 100.00 AA- $2,178,140
3,515   North Carolina Medical Care Commission, Health Care Facilities Revenue Bonds, Vidant Health, Refunding Series 2012A, 5.000%, 6/01/36   6/22 at 100.00 A+ 3,783,722
3,000   North Carolina Medical Care Commission, Health Care Facilities Revenue Bonds, Wake Forest Baptist Obligated Group, Series 2012A, 5.000%, 12/01/45   12/22 at 100.00 A 3,214,350
    North Carolina Medical Care Commission, Health Care Facilities Revenue Bonds, WakeMed, Refunding Series 2012A:        
2,000   5.000%, 10/01/27   10/22 at 100.00 A+ 2,202,080
3,500   5.000%, 10/01/31   10/22 at 100.00 A+ 3,828,300
2,930   North Carolina Medical Care Commission, Hospital Revenue Bonds, Southeastern Regional Medical Center, Refunding Series 2012, 5.000%, 6/01/32   6/22 at 100.00 A 3,175,886
4,000   The Charlotte-Mecklenburg Hospital Authority, North Carolina, Doing Business as Atrium Health, Health Care Refunding Revenue Bonds, Series 2018A, 5.000%, 1/15/36   1/29 at 100.00 AA- 4,635,560
53,815   Total Health Care       58,110,145
    Housing/Multifamily – 1.1% (0.7% of Total Investments)        
    Mecklenburg County, North Carolina, FNMA Multifamily Housing Revenue Bonds, Little Rock Apartments, Series 2003:        
375   5.150%, 1/01/22 (AMT)   3/19 at 100.00 N/R 377,340
2,260   5.375%, 1/01/36 (AMT)   3/19 at 100.00 N/R 2,269,040
2,635   Total Housing/Multifamily       2,646,380
    Housing/Single Family – 0.7% (0.4% of Total Investments)        
1,490   North Carolina Housing Finance Agency, Home Ownership Revenue Bonds, Series 2011-1, 4.500%, 1/01/28   1/21 at 100.00 AA 1,526,147
    Long-Term Care – 1.5% (0.9% of Total Investments)        
2,690   North Carolina Medical Care Commission, Health Care Facilities Revenue Bonds, Deerfield Episcopal Retirement Community, Refunding First Mortgage Series 2016, 5.000%, 11/01/37   11/26 at 100.00 A 2,977,830
450   North Carolina Medical Care Commission, Retirement Facilities First Mortgage Revenue Bonds, United Methodist Retirement Homes, Refunding Series 2013A, 5.000%, 10/01/33   10/23 at 100.00 N/R 472,275
3,140   Total Long-Term Care       3,450,105
    Tax Obligation/General – 7.2% (4.4% of Total Investments)        
4,000   Clark County School District, Nevada, General Obligation Bonds, Limited Tax Building Series 2018A, 4.000%, 6/15/37   6/28 at 100.00 A+ 4,108,640
835   Durham, North Carolina, General Obligation Bonds, Refunding Series 2015, 5.000%, 10/01/26   No Opt. Call AAA 1,020,454
3,500   Evanston, Illinois, General Obligation Bonds, Corporate Purpose Series 2016A, 4.000%, 12/01/43   6/28 at 100.00 AA+ 3,581,060
1,050   Forsyth County, North Carolina, General Obligation Bonds, Limited Obligation Series 2009, 5.000%, 4/01/30   4/20 at 100.00 AA+ 1,085,238
3

NNC Nuveen North Carolina Quality Municipal Income Fund (continued)
  Portfolio of Investments February 28, 2019
  (Unaudited)
Principal Amount (000)   Description (1)   Optional Call Provisions (2) Ratings (3) Value
    Tax Obligation/General (continued)        
$ 1,000   Raleigh, North Carolina, General Obligation Bonds, Refunding Series 2016A, 5.000%, 9/01/26   No Opt. Call AAA $1,219,820
5,750   West Virginia State, General Obligation Bonds, State Road Competitive Series 2018B, 4.000%, 6/01/42   6/28 at 100.00 Aa2 5,981,150
16,135   Total Tax Obligation/General       16,996,362
    Tax Obligation/Limited – 27.0% (16.3% of Total Investments)        
    Buncombe County, North Carolina, Limited Obligation Bonds, Refunding Series 2014A:        
1,085   5.000%, 6/01/33   6/24 at 100.00 AA+ 1,235,294
1,600   5.000%, 6/01/34   6/24 at 100.00 AA+ 1,817,376
    Catawba County, North Carolina, General Obligation Bonds, Limited Obligation Series 2014A:        
1,000   5.000%, 6/01/30   6/24 at 100.00 AA 1,124,790
730   5.000%, 6/01/31   6/24 at 100.00 AA 819,191
2,405   Charlotte, North Carolina, Certificates of Participation, Transit Projects Phase 2, Refunding Series 2008A, 5.000%, 6/01/33   3/19 at 100.00 AA+ 2,410,796
2,045   Charlotte, North Carolina, Storm Water Fee Revenue Bonds, Refunding Series 2014, 5.000%, 12/01/39   12/24 at 100.00 AAA 2,327,169
5,810   Collier County, Florida, Tourist Development Tax Revenue Bonds, Series 2018, 4.000%, 10/01/43   10/28 at 100.00 AA+ 5,950,079
2,085   Dare County, North Carolina, Installment Purchase Contract, Limited Obligation Series 2012B, 5.000%, 6/01/28   6/22 at 100.00 AA 2,278,425
2,000   Greensboro, North Carolina, Limited Obligation Bonds, Coliseum Complex Project, Series 2018A, 5.000%, 4/01/42   4/28 at 100.00 AA+ 2,284,580
500   Henderson County, North Carolina, Limited Obligation Bonds, Series 2015, 5.000%, 10/01/31   10/25 at 100.00 AA 575,325
595   Hillsborough, North Carolina, Special Assessement Revenue Bonds, Series 2013, 7.750%, 2/01/24   2/23 at 100.00 N/R 609,637
980   Jacksonville Public Facilities Corporation, North Carolina, Limited Obligation Bonds, Refunding Series 2017, 5.000%, 4/01/29   4/28 at 100.00 Aa3 1,190,416
7,000   Miami-Dade County, Florida, Transit System Sales Surtax Revenue Bonds, Series 2018, 4.000%, 7/01/48   7/28 at 100.00 AA 7,188,370
5,000   North Carolina State, Limited Obligation Bonds, Refunding Series 2014C, 5.000%, 5/01/25   5/24 at 100.00 AA+ 5,779,900
    North Carolina State, Limited Obligation Bonds, Refunding Series 2017B:        
2,000   5.000%, 5/01/29 (UB) (4)   5/27 at 100.00 AA+ 2,416,600
4,000   5.000%, 5/01/30 (UB) (4)   5/27 at 100.00 AA+ 4,798,280
8,065   North Carolina Turnpike Authority, Monroe Connector System State Appropriation Bonds, Series 2011, 5.000%, 7/01/41   7/21 at 100.00 AA+ 8,559,385
    Orange County Public Facilities Company, North Carolina, Limited Obligation Bonds, Refunding Series 2017:        
200   5.000%, 10/01/27   No Opt. Call AA+ 246,560
150   5.000%, 10/01/28   10/27 at 100.00 AA+ 183,657
400   5.000%, 10/01/30   10/27 at 100.00 AA+ 482,860
4

Principal Amount (000)   Description (1)   Optional Call Provisions (2) Ratings (3) Value
    Tax Obligation/Limited (continued)        
$ 1,000   Raleigh, North Carolina, Limited Obligation Bonds, Series 2013, 5.000%, 10/01/33   10/23 at 100.00 AA+ $1,124,160
    Raleigh, North Carolina, Limited Obligation Bonds, Series 2014A:        
1,195   5.000%, 10/01/25   10/24 at 100.00 AA+ 1,397,529
1,305   5.000%, 10/01/26   10/24 at 100.00 AA+ 1,523,692
650   Rocky Mount, North Carolina, Special Obligation Bonds, Series 2016, 5.000%, 5/01/30   5/26 at 100.00 AA+ 756,236
    Sampson County, North Carolina, Limited Obligaiton Bonds, Refunding Series 2017:        
300   5.000%, 9/01/32   9/27 at 100.00 A1 350,337
1,250   4.000%, 9/01/35   9/27 at 100.00 A1 1,325,350
1,265   4.000%, 9/01/36   9/27 at 100.00 A1 1,325,771
1,000   4.000%, 9/01/37   9/27 at 100.00 A1 1,038,530
2,325   Washington State Convention Center Public Facilities District, Lodging Tax Revenue Bonds, Series 2018, 4.000%, 7/01/58   7/28 at 100.00 A1 2,286,614
57,940   Total Tax Obligation/Limited       63,406,909
    Transportation – 25.9% (15.6% of Total Investments)        
5,000   Charlotte, North Carolina, Airport Revenue Bonds, Charlotte Douglas International Refunding Series 2010A, 5.000%, 7/01/39   7/20 at 100.00 AA- 5,202,750
10   Charlotte, North Carolina, Airport Revenue Bonds, Charlotte Douglas International Refunding Series 2010B, 5.375%, 7/01/28 (AMT)   7/20 at 100.00 AA- 10,446
1,425   Charlotte, North Carolina, Airport Revenue Bonds, Charlotte Douglas International, Refunding Series 2011A, 5.000%, 7/01/41   7/21 at 100.00 AA- 1,517,027
    Charlotte, North Carolina, Airport Revenue Bonds, Charlotte Douglas International, Refunding Series 2014A:        
2,865   5.000%, 7/01/27   7/24 at 100.00 AA- 3,276,242
3,000   5.000%, 7/01/28   7/24 at 100.00 AA- 3,419,250
    Charlotte, North Carolina, Airport Revenue Bonds, Charlotte Douglas International, Refunding Series 2017A:        
1,365   5.000%, 7/01/42 (UB) (4)   7/27 at 100.00 Aa3 1,557,260
5,390   5.000%, 7/01/47 (UB) (4)   7/27 at 100.00 Aa3 6,130,047
1,400   Charlotte, North Carolina, Airport Revenue Bonds, Charlotte Douglas International, Series 2011B, 5.000%, 7/01/36 (AMT)   7/21 at 100.00 AA- 1,482,222
10,000   North Carolina Department of Transportation, Private Activity Revenue Bonds, I-77 Hot Lanes Project, Series 2015, 5.000%, 6/30/54 (AMT)   6/25 at 100.00 BBB- 10,462,200
2,725   North Carolina State Ports Authority, Port Facilities Revenue Bonds, Senior Lien Series 2010A, 5.250%, 2/01/40   2/20 at 100.00 A3 2,785,522
515   North Carolina State Ports Authority, Port Facilities Revenue Bonds, Senior Lien Series 2010B, 5.000%, 2/01/29   2/20 at 100.00 A3 526,994
5

NNC Nuveen North Carolina Quality Municipal Income Fund (continued)
  Portfolio of Investments February 28, 2019
  (Unaudited)
Principal Amount (000)   Description (1)   Optional Call Provisions (2) Ratings (3) Value
    Transportation (continued)        
    North Carolina Turnpike Authority, Monroe Expressway Toll Revenue Bonds, Capital Appreciation Series 2017C:        
$ 835   0.000%, 7/01/28   7/26 at 91.99 BBB- $602,177
800   0.000%, 7/01/30   7/26 at 83.69 BBB- 514,816
850   0.000%, 7/01/31   7/26 at 79.58 BBB- 515,287
2,400   0.000%, 7/01/33   7/26 at 71.99 BBB- 1,295,496
3,160   0.000%, 7/01/36   7/26 at 61.63 BBB- 1,426,993
3,100   0.000%, 7/01/37   7/26 at 58.52 BBB- 1,318,988
1,900   0.000%, 7/01/40   7/26 at 50.36 BBB- 687,249
400   North Carolina Turnpike Authority, Monroe Expressway Toll Revenue Bonds, Series 2017A, 5.000%, 7/01/47   7/26 at 100.00 BBB- 429,360
2,200   North Carolina Turnpike Authority, Triangle Expressway System Revenue Bonds, Refunding Senior Lien Series 2017, 5.000%, 1/01/39  –  AGM Insured   1/27 at 100.00 AA 2,451,790
    North Carolina Turnpike Authority, Triangle Expressway System Revenue Bonds, Senior Lien Series 2009B:        
150   0.000%, 1/01/31  –  AGC Insured   No Opt. Call AA 101,679
4,375   0.000%, 1/01/33  –  AGC Insured   No Opt. Call AA 2,690,013
2,300   0.000%, 1/01/34  –  AGC Insured   No Opt. Call AA 1,349,249
2,380   0.000%, 1/01/35  –  AGC Insured   No Opt. Call AA 1,335,275
7,575   0.000%, 1/01/37  –  AGC Insured   No Opt. Call AA 3,854,312
1,470   0.000%, 1/01/38  –  AGC Insured   No Opt. Call AA 711,921
    Raleigh Durham Airport Authority, North Carolina, Airport Revenue Bonds, Refunding Series 2010A:        
1,000   5.000%, 5/01/26   5/20 at 100.00 Aa3 1,035,760
4,125   5.000%, 5/01/36   5/20 at 100.00 Aa3 4,260,011
72,715   Total Transportation       60,950,336
    U.S. Guaranteed – 20.1% (12.1% of Total Investments) (5)        
2,135   Cape Fear Public Utility Authority, North Carolina, Water & Sewer System Revenue Bonds, Refunding Series 2011, 5.000%, 8/01/31 (Pre-refunded 8/01/21)   8/21 at 100.00 AA+ 2,303,153
    Dare County, North Carolina, Utilities System Revenue Bonds, Series 2011:        
3,860   5.000%, 2/01/36 (Pre-refunded 2/01/21)   2/21 at 100.00 AA 4,107,156
1,250   5.000%, 2/01/41 (Pre-refunded 2/01/21)   2/21 at 100.00 AA 1,330,037
8,600   Durham, North Carolina, Utility System Revenue Bonds, Refunding Series 2011, 5.000%, 6/01/41 (Pre-refunded 6/01/21)   6/21 at 100.00 AAA 9,241,130
    Harnett County, North Carolina, Certificates of Participation, Series 2009:        
1,000   5.000%, 6/01/28 (Pre-refunded 6/01/19)  –  AGC Insured   6/19 at 100.00 AA 1,008,180
500   5.000%, 6/01/29 (Pre-refunded 6/01/19)  –  AGC Insured   6/19 at 100.00 AA 504,090
6

Principal Amount (000)   Description (1)   Optional Call Provisions (2) Ratings (3) Value
    U.S. Guaranteed (5) (continued)        
    Jacksonville Public Facilities Corporation, North Carolina, Limited Obligation Bonds, Series 2012:        
$ 1,065   5.000%, 4/01/29 (Pre-refunded 4/01/22)   4/22 at 100.00 Aa3 $1,171,532
1,165   5.000%, 4/01/30 (Pre-refunded 4/01/22)   4/22 at 100.00 Aa3 1,281,535
1,000   5.000%, 4/01/31 (Pre-refunded 4/01/22)   4/22 at 100.00 Aa3 1,100,030
200   5.000%, 4/01/32 (Pre-refunded 4/01/22)   4/22 at 100.00 Aa3 220,006
555   New Hanover County, North Carolina, Hospital Revenue Bonds, New Hanover Regional Medical Center, Series 2006B, 5.125%, 10/01/31 (Pre-refunded 10/01/19)  –  AGM Insured   10/19 at 100.00 AA 566,083
    North Carolina Eastern Municipal Power Agency, Power System Revenue Bonds, Refunding Series 1993B:        
180   6.000%, 1/01/22  –  FGIC Insured (ETM)   No Opt. Call Baa2 201,308
100   6.000%, 1/01/22 (ETM)   No Opt. Call N/R 111,985
3,500   North Carolina Eastern Municipal Power Agency, Power System Revenue Bonds, Series 2012A, 5.000%, 1/01/25 (Pre-refunded 7/01/22)   7/22 at 100.00 N/R 3,875,375
2,680   North Carolina Medical Care Commission, Health Care Facilities Revenue Bonds, Appalchian Regional HealthCare System, Series 2011A, 6.500%, 7/01/31 (Pre-refunded 7/01/21)   7/21 at 100.00 BBB+ 2,971,316
1,680   North Carolina Medical Care Commission, Health Care Facilities Revenue Bonds, Cleveland County Healthcare System, Refunding Series 2011A, 5.750%, 1/01/35 (Pre-refunded 1/01/21)   1/21 at 100.00 N/R 1,802,338
2,180   North Carolina Municipal Power Agency 1, Catawba Electric Revenue Bonds, Series 1986, 5.000%, 1/01/20 (ETM)   No Opt. Call Aaa 2,239,558
    Oak Island, North Carolina, Enterprise System Revenue Bonds, Series 2009:        
2,020   6.000%, 6/01/34 (Pre-refunded 6/01/19)  –  AGC Insured   6/19 at 100.00 AA 2,041,634
1,020   6.000%, 6/01/36 (Pre-refunded 6/01/19)  –  AGC Insured   6/19 at 100.00 AA 1,030,924
    Oak Island, North Carolina, Enterprise System Revenue Bonds, Series 2011:        
600   5.625%, 6/01/30 (Pre-refunded 6/01/20)  –  AGC Insured   6/20 at 100.00 AA 629,406
2,100   5.750%, 6/01/36 (Pre-refunded 6/01/20)  –  AGC Insured   6/20 at 100.00 AA 2,206,134
    University of North Carolina, System Pooled Revenue Bonds, Series 2009C:        
1,000   5.250%, 10/01/28 (Pre-refunded 10/01/19)   10/19 at 100.00 A3 1,020,970
1,000   5.375%, 10/01/29 (Pre-refunded 10/01/19)   10/19 at 100.00 A3 1,021,680
5,100   Wake County, North Carolina, Limited Obligation Bonds, Series 2010, 5.000%, 1/01/37 (Pre-refunded 1/01/20)   1/20 at 100.00 AA+ 5,243,565
44,490   Total U.S. Guaranteed       47,229,125
    Utilities – 5.0% (3.0% of Total Investments)        
    Monroe, North Carolina, Combined Enterprise System Revenue Bonds, Refunding Series 2016:        
775   5.000%, 3/01/30   3/26 at 100.00 A+ 898,760
900   4.000%, 3/01/33   3/26 at 100.00 A+ 951,777
5,000   North Carolina Capital Facilities Financing Agency, Solid Waste Disposal Revenue Bond, Duke Energy Carolinas Project, Refunding Series 2008B, 4.625%, 11/01/40   11/20 at 100.00 Aa2 5,169,800
7

NNC Nuveen North Carolina Quality Municipal Income Fund (continued)
  Portfolio of Investments February 28, 2019
  (Unaudited)
Principal Amount (000)   Description (1)   Optional Call Provisions (2) Ratings (3) Value
    Utilities (continued)        
$ 315   North Carolina Municipal Power Agency 1, Catawba Electric Revenue Bonds, Refunding Series 2009A, 5.000%, 1/01/30   3/19 at 100.00 A $315,718
    North Carolina Municipal Power Agency 1, Catawba Electric Revenue Bonds, Refunding Series 2015A:        
1,545   5.000%, 1/01/28   1/26 at 100.00 A 1,815,823
1,500   5.000%, 1/01/32   1/26 at 100.00 A 1,724,985
760   North Carolina Municipal Power Agency 1, Catawba Electric Revenue Bonds, Refunding Series 2016A, 5.000%, 1/01/30   7/26 at 100.00 A 893,167
10,795   Total Utilities       11,770,030
    Water and Sewer – 23.2% (14.0% of Total Investments)        
1,145   Brunswick County, North Carolina, Enterprise System Revenue Bonds, Refunding Series 2012A, 5.000%, 4/01/25   4/22 at 100.00 AA- 1,254,680
    Charlotte, North Carolina, Water and Sewer System Revenue Bonds, Refunding Series 2015:        
940   5.000%, 7/01/32   7/25 at 100.00 AAA 1,086,236
2,325   5.000%, 7/01/40   7/25 at 100.00 AAA 2,619,740
    Charlotte, North Carolina, Water and Sewer System Revenue Bonds, Refunding Series 2018:        
16,865   5.000%, 7/01/44 (UB) (4)   7/28 at 100.00 AAA 19,693,261
2,055   5.000%, 7/01/44   7/28 at 100.00 AAA 2,399,624
4,750   Greensboro, North Carolina, Combined Enterprise System Revenue Bonds, Series 2017A, 4.000%, 6/01/47   6/27 at 100.00 AAA 4,910,502
1,535   Mooresville, North Carolina, Enterprise System Revenue Bonds, Refunding Series 2012, 5.000%, 5/01/28   5/22 at 100.00 AA+ 1,682,836
3,040   Oak Island, North Carolina, Enterprise System Revenue Bonds, Refunding Series 2015, 5.000%, 6/01/33   6/25 at 100.00 AA 3,445,688
    Raleigh, North Carolina, Combined Enterprise System Revenue Bonds, Refunding Series 2012A:        
550   5.000%, 3/01/30   3/22 at 100.00 AAA 599,478
1,600   5.000%, 3/01/31   3/22 at 100.00 AAA 1,742,464
    Raleigh, North Carolina, Combined Enterprise System Revenue Bonds, Refunding Series 2013A:        
5,000   5.000%, 3/01/28   3/23 at 100.00 AAA 5,609,050
3,785   5.000%, 3/01/43   3/23 at 100.00 AAA 4,149,571
5,000   Raleigh, North Carolina, Combined Enterprise System Revenue Bonds, Refunding Series 2016A, 4.000%, 3/01/46   3/27 at 100.00 AAA 5,195,050
48,590   Total Water and Sewer       54,388,180
$ 374,130   Total Long-Term Investments (cost $373,130,563)       389,655,409
    Floating Rate Obligations – (7.9)%       (18,630,000)
    Adjustable Rate MuniFund Term Preferred Shares, net of deferred offering costs – (61.0)% (6)       (143,318,962)
    Other Assets Less Liabilities – 3.1%       7,242,135
    Net Asset Applicable to Common Shares – 100%       $ 234,948,582
8

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, credit spreads, 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 $ — $389,655,409 $ — $389,655,409
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.
The table below presents the cost and unrealized appreciation (depreciation) of the Fund's investment portfolio, as determined on a federal income tax basis, as of February 28, 2019.
Tax cost of investments $354,349,441
Gross unrealized:  
Appreciation $ 17,013,729
Depreciation (337,679)
Net unrealized appreciation (depreciation) of investments $ 16,676,050
(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) 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.  
(4) Investment, or portion of investment, has been pledged to collateralize the net payment obligations for investments in inverse floating rate transactions.  
(5) Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities, which ensure the timely payment of principal and interest.  
(6) Adjustable Rate MuniFund Term Preferred Shares, net of deferred offering cost as a percentage of Total Investments is 36.8%.  
AMT Alternative Minimum Tax  
ETM Escrowed to maturity  
UB Underlying bond of an inverse floating rate trust reflected as a financing transaction.  
9

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 North Carolina Quality Municipal Income Fund   
By (Signature and Title)    /s/ Gifford R. Zimmerman                                                       
   Gifford R. Zimmerman   
   Vice President and Secretary   

Date: April 29, 2019

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/ Cedric H. Antosiewicz                                                        
   Cedric H. Antosiewicz   
   Chief Administrative Officer (principal executive officer)   
Date: April 29, 2019      
By (Signature and Title)    /s/ E. Scott Wickerham                                                            
   E. Scott Wickerham   
   Vice President and Controller (principal financial officer)   
Date: April 29, 2019