Nuveen Arizona 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 811-07278

Nuveen Arizona 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:       February 28      

Date of reporting period: November 30, 2017

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

 

 

NAZ
Nuveen Arizona Quality Municipal Income Fund
Portfolio of Investments November 30, 2017 (Unaudited)
Principal Amount (000)   Description (1)   Optional Call Provisions (2) Ratings (3) Value
    LONG-TERM INVESTMENTS – 152.5% (100.0% of Total Investments)        
    MUNICIPAL BONDS – 152.5% (100.0% of Total Investments)        
    Education and Civic Organizations – 29.5% (19.3% of Total Investments)        
$ 2,175   Arizona Board of Regents, Arizona State University System Revenue Bonds, Green Series 2016B, 5.000%, 7/01/47   7/26 at 100.00 AA $2,512,364
1,500   Arizona Board of Regents, Arizona State University System Revenue Bonds, Refunding Green Series 2015A, 5.000%, 7/01/41   7/25 at 100.00 AA 1,726,020
3,480   Arizona Board of Regents, Arizona State University System Revenue Bonds, Refunding Series 2013A, 5.000%, 7/01/43   7/22 at 100.00 AA 3,874,562
1,500   Arizona Board of Regents, Arizona State University System Revenue Bonds, Series 2015D, 5.000%, 7/01/41   7/25 at 100.00 AA 1,720,500
2,515   Arizona Board of Regents, University of Arizona, SPEED Revenue Bonds, Stimulus Plan for Economic and Educational Development, Series 2014, 5.000%, 8/01/44   8/24 at 100.00 Aa3 2,822,886
2,240   Arizona Board of Regents, University of Arizona, System Revenue Bonds, Tender Option Bond Trust 2015-XF0053, 144A, 15.060%, 6/01/42 (IF)   6/22 at 100.00 AA- 3,241,930
240   Arizona Industrial Development Authority Education Facility Revenue Bonds, Montessori Academy Projects, Refunding Series 2017A, 144A, 6.250%, 11/01/50   11/27 at 100.00 N/R 238,987
515   Arizona Industrial Development Authority, Arizona, Education Facility Revenue Bonds, Basis Schools, Inc. Projects, Series 2017A, 144A, 5.125%, 7/01/37   7/26 at 100.00 BB 544,051
525   Arizona Industrial Development Authority, Arizona, Education Facility Revenue Bonds, Basis Schools, Inc. Projects, Series 2017C, 5.000%, 7/01/47   7/27 at 100.00 AA- 591,775
150   Arizona Industrial Development Authority, Arizona, Education Facility Revenue Bonds, Basis Schools, Inc. Projects, Series 2017D, 144A, 5.000%, 7/01/47   7/27 at 100.00 BB 155,304
710   Arizona Industrial Development Authority, Arizona, Education Revenue Bonds, Academies of Math & Science Projects, Series 2017A, 5.000%, 7/01/42   7/27 at 100.00 AA- 795,378
415   Arizona Industrial Development Authority, Arizona, Education Revenue Bonds, Academies of Math & Science Projects, Series 2017B, 144A, 4.250%, 7/01/27   No Opt. Call BB 414,016
2,000   Glendale Industrial Development Authority, Arizona, Revenue Bonds, Midwestern University, Refunding Series 2007, 5.000%, 5/15/31   5/22 at 100.00 A 2,218,960
3,775   Glendale Industrial Development Authority, Arizona, Revenue Bonds, Midwestern University, Refunding Series 2010, 5.125%, 5/15/40   5/20 at 100.00 A+ 4,027,321
355   Maricopa County Industrial Development Authority, Arizona, Education Revenue Bonds, Great Hearts Academies Projects, Series 2017A, 5.000%, 7/01/37   7/27 at 100.00 AA- 408,282
    Maricopa County Industrial Development Authority, Arizona, Education Revenue Bonds, Great Hearts Academies Projects, Series 2017C:        
245   3.375%, 7/01/42   7/27 at 100.00 AA- 237,613
490   5.000%, 7/01/48   7/27 at 100.00 AA- 560,060
870   Maricopa County Industrial Development Authority, Arizona, Education Revenue Bonds, Paradise Schools Projects, Series 2016, 144A, 5.000%, 7/01/36   7/26 at 100.00 BB+ 911,986
2,095   McAllister Academic Village LLC, Arizona, Revenue Bonds, Arizona State University Hassayampa Academic Village Project, Refunding Series 2016, 5.000%, 7/01/37   7/26 at 100.00 AA- 2,432,023
1,875   Northern Arizona University, System Revenue Bonds, Refunding Series 2014, 5.000%, 6/01/40   6/24 at 100.00 A+ 2,117,119

Principal Amount (000)   Description (1)   Optional Call Provisions (2) Ratings (3) Value
    Education and Civic Organizations (continued)        
$ 910   Northern Arizona University, System Revenue Bonds, Series 2012, 5.000%, 6/01/41   6/21 at 100.00 A+ $986,886
70   Phoenix Industrial Development Authority, Arizona, Education Facility Revenue Bonds, Basis Schools, Inc. Projects, Series 2016A, 144A, 5.000%, 7/01/46   7/25 at 100.00 BB 72,405
900   Phoenix Industrial Development Authority, Arizona, Education Facility Revenue Bonds, Choice Academies Charter Schools Project, Series 2012, 5.625%, 9/01/42   9/22 at 100.00 BB+ 930,699
523   Phoenix Industrial Development Authority, Arizona, Education Facility Revenue Bonds, fbo Brighter Choice Foundation Charter Middle Schools Project, Albany, New York, Series 2012, 7.500%, 7/01/42 (4)   7/22 at 100.00 N/R 37,445
800   Phoenix Industrial Development Authority, Arizona, Education Facility Revenue Bonds, Great Hearts Academies Project, Series 2016A, 5.000%, 7/01/41   7/25 at 100.00 BBB- 871,064
250   Phoenix Industrial Development Authority, Arizona, Education Facility Revenue Bonds, Legacy Traditional Schools East Mesa and Cadence, Nevada Campuses, Series 2017A, 144A, 4.000%, 7/01/22   7/19 at 101.00 N/R 246,298
165   Phoenix Industrial Development Authority, Arizona, Education Facility Revenue Bonds, Legacy Traditional Schools Phoenix/East Mesa and Cadence, Nevada Campuses, Series 2017B, 144A, 4.000%, 7/01/22   7/19 at 101.00 N/R 162,891
500   Phoenix Industrial Development Authority, Arizona, Education Facility Revenue Bonds, Legacy Traditional Schools Project, Series 2014A, 144A, 6.750%, 7/01/44   7/24 at 100.00 Ba1 560,675
    Phoenix Industrial Development Authority, Arizona, Education Facility Revenue Bonds, Legacy Traditional Schools Projects, Series 2015, 144A:        
315   5.000%, 7/01/35   7/25 at 100.00 Ba1 322,365
300   5.000%, 7/01/45   7/25 at 100.00 Ba1 300,564
650   Phoenix Industrial Development Authority, Arizona, Education Facility Revenue Bonds, Legacy Traditional Schools Projects, Series 2016A, 144A, 5.000%, 7/01/41   7/26 at 100.00 Ba1 681,135
400   Phoenix Industrial Development Authority, Arizona, Education Facility Revenue Bonds, Villa Montessori, Inc. Projects, Series 2015, 3.250%, 7/01/25   No Opt. Call BBB- 404,556
1,995   Phoenix Industrial Development Authority, Arizona, Lease Revenue Bonds, Eastern Kentucky University Project, Series 2016, 5.000%, 10/01/36   10/26 at 100.00 A2 2,246,230
3,675   Phoenix Industrial Development Authority, Arizona, Lease Revenue Bonds, Rowan University Project, Series 2012, 5.000%, 6/01/42 (UB) (5)   6/22 at 100.00 A 4,012,402
200   Pima County Industrial Development Authority, Arizona, Charter School Revenue Bonds, Desert Heights Charter School, Series 2014, 7.250%, 5/01/44   5/24 at 100.00 N/R 219,126
    Pima County Industrial Development Authority, Arizona, Education Facility Revenue Bonds, Champion Schools Project, Series 2017, 144A:        
120   6.000%, 6/15/37   6/26 at 100.00 N/R 122,484
680   6.125%, 6/15/47   6/26 at 100.00 N/R 691,948
200   Pima County Industrial Development Authority, Arizona, Education Facility Revenue Bonds, Edkey Charter Schools Project, Series 2016, 5.250%, 7/01/36   7/26 at 100.00 BB 175,002
35   Pima County Industrial Development Authority, Arizona, Education Facility Revenue Bonds, San Tan Montessori School Project, Series 2016, 144A, 6.500%, 2/01/48   2/24 at 100.00 N/R 34,950
745   Pima County Industrial Development Authority, Arizona, Education Revenue Bonds, Carden Traditional Schools Project, Series 2012, 7.500%, 1/01/42   1/22 at 100.00 B 691,986
500   Pima County Industrial Development Authority, Arizona, Education Revenue Bonds, Noah Webster Schools Mesa Project, Series 2015A, 144A, 5.000%, 12/15/34   6/25 at 100.00 BB 505,030
730   Pinal County Community College District, Arizona, Revenue Bonds, Central Arizona College, Series 2017, 5.000%, 7/01/35  –  BAM Insured   7/26 at 100.00 AA 842,632

Principal Amount (000)   Description (1)   Optional Call Provisions (2) Ratings (3) Value
    Education and Civic Organizations (continued)        
$ 780   Student and Academic Services LLC, Arizona, Lease Revenue Bonds, Northern Arizona University Project, Series 2014, 5.000%, 6/01/39  –  BAM Insured   6/24 at 100.00 AA $872,375
250   Sun Devil Energy LLC, Arizona, Revenue Refunding Bonds, Arizona State University Project, Series 2008, 5.000%, 7/01/22   No Opt. Call AA- 282,980
    The Industrial Development Authority of the County of Maricopa, Arizona, Education Revenue Bonds, Reid Traditional School Projects, Series 2016:        
520   5.000%, 7/01/36   7/26 at 100.00 Baa3 564,096
300   5.000%, 7/01/47   7/26 at 100.00 Baa3 316,929
825   Yavapai County Industrial Development Authority, Arizona, Education Revenue Bonds, Arizona Agribusiness and Equine Center, Inc. Project, Series 2011, 7.875%, 3/01/42   3/21 at 100.00 BB+ 900,512
45,008   Total Education and Civic Organizations       49,606,802
    Health Care – 17.5% (11.5% of Total Investments)        
1,200   Arizona Health Facilities Authority, Hospital Revenue Bonds, Banner Health Systems, Series 2014A, 5.000%, 1/01/44   1/24 at 100.00 AA- 1,338,984
5,100   Arizona Health Facilities Authority, Hospital System Revenue Bonds, Phoenix Children's Hospital, Refunding Series 2012A, 5.000%, 2/01/42   2/22 at 100.00 BBB+ 5,432,061
    Arizona Health Facilities Authority, Revenue Bonds, Scottsdale Lincoln Hospitals Project, Refunding Series 2014A:        
3,005   5.000%, 12/01/39   12/24 at 100.00 A2 3,424,197
2,860   5.000%, 12/01/42   12/24 at 100.00 A2 3,260,915
    Maricopa County Industrial Development Authority, Arizona, Revenue Bonds, Banner Health, Refunding Series 2016A:        
1,250   5.000%, 1/01/32   1/27 at 100.00 AA- 1,469,013
1,000   5.000%, 1/01/35   1/27 at 100.00 AA- 1,162,150
2,000   5.000%, 1/01/38   1/27 at 100.00 AA- 2,310,520
1,120   Scottsdale Industrial Development Authority, Arizona, Hospital Revenue Bonds, Scottsdale Healthcare, Series 2006C. Re-offering, 5.000%, 9/01/35  –  AGC Insured   9/20 at 100.00 AA 1,197,392
    The Industrial Development Authority of the County of Maricopa, Arizona, Revenue Bonds, Banner Health, Series 2017A:        
2,700   4.000%, 1/01/41   1/28 at 100.00 AA- 2,832,462
2,000   5.000%, 1/01/41   1/28 at 100.00 AA- 2,322,880
1,025   Yavapai County Industrial Development Authority, Arizona, Hospital Facility Revenue Refunding Bonds, Yavapai Regional Medical Center, Series 2016, 5.000%, 8/01/36   8/26 at 100.00 A 1,126,885
    Yavapai County Industrial Development Authority, Arizona, Hospital Revenue Bonds, Yavapai Regional Medical Center, Series 2013A:        
210   5.000%, 8/01/19   No Opt. Call A 220,221
1,000   5.250%, 8/01/33   8/23 at 100.00 A 1,094,450
    Yuma Industrial Development Authority, Arizona, Hospital Revenue Bonds, Yuma Regional Medical Center, Series 2014A:        
1,000   5.000%, 8/01/22   No Opt. Call A- 1,120,110
1,000   5.250%, 8/01/32   8/24 at 100.00 A- 1,131,860
26,470   Total Health Care       29,444,100

Principal Amount (000)   Description (1)   Optional Call Provisions (2) Ratings (3) Value
    Long-Term Care – 1.7% (1.1% of Total Investments)        
$ 285   Arizona Industrial Development Authority, Multifamily Housing Revenue Bonds, Bridgewater Avondale Project, Series 2017, 5.375%, 1/01/38   7/25 at 101.00 N/R $283,016
1,885   Phoenix Industrial Development Authority, Arizona, Multi-Family Housing Revenue Bonds, 3rd and Indian Road Assisted Living Project, Series 2016, 5.400%, 10/01/36   10/25 at 101.00 N/R 1,792,937
780   Tempe Industrial Development Authority, Arizona, Revenue Bonds, Friendship Village of Tempe Project, Refunding Series 2012A, 6.000%, 12/01/32   12/21 at 100.00 N/R 834,350
2,950   Total Long-Term Care       2,910,303
    Tax Obligation/General – 17.4% (11.4% of Total Investments)        
575   Buckeye Union High School District 201, Maricopa County, Arizona, General Obligation Bonds, School Improvement Project, Refunding Series 2017, 5.000%, 7/01/35  –  BAM Insured   7/27 at 100.00 AA 668,001
    Casa Grande, Arizona, General Obligation Bonds, Refunding Series 2016B:        
1,605   4.000%, 8/01/33   8/26 at 100.00 AAA 1,723,995
835   4.000%, 8/01/34   8/26 at 100.00 AAA 893,625
2,500   Chandler, Arizona, General Obligation Bonds, Refunding Series 2014, 5.000%, 7/01/24   No Opt. Call AAA 2,973,450
    Dysart Unified School District Number 89, Maricopa County, Arizona, General Obligation Bonds, Refunding Series 2014:        
1,000   5.000%, 7/01/26   7/24 at 100.00 AAA 1,153,310
525   5.000%, 7/01/27   7/24 at 100.00 AAA 604,112
2,140   El Mirage, Arizona, General Obligation Bonds Series 2012, 5.000%, 7/01/42  –  AGM Insured   7/22 at 100.00 AA 2,352,395
1,000   Maricopa County Elementary School District 83 Cartwright, Arizona, General Obligation Bonds, School Improvement, Project 2010, Series 2011A, 5.375%, 7/01/30  –  AGM Insured   7/21 at 100.00 AA 1,106,750
775   Maricopa County School District 79 Litchfield Elementary, Arizona, General Obligation Bonds, Series 2011, 5.000%, 7/01/23   7/21 at 100.00 Aa2 859,064
300   Maricopa County Unified School District 60 Higley, Arizona, General Obligation Bonds, School Improvement Project of 2013, Series 2016C, 4.000%, 7/01/33  –  AGM Insured   7/26 at 100.00 AA 321,123
1,275   Maricopa County Union High School District 210 Phoenix, Arizona, General Obligation Bonds, School Improvement & Project of 2011 Series 2017E, 5.000%, 7/01/33   7/27 at 100.00 Aa2 1,519,762
    Mohave County Union High School District 2 Colorado River, Arizona, General Obligation Bonds, School Improvement Series 2017:        
1,000   5.000%, 7/01/34   7/27 at 100.00 Aa3 1,159,940
1,000   5.000%, 7/01/36   7/27 at 100.00 Aa3 1,151,870
690   Northwest Fire District of Pima County, Arizona, General Obligation Bonds, Series 2017, 5.000%, 7/01/36   7/27 at 100.00 AA- 816,705
1,370   Pima County Continental Elementary School District 39, Arizona, General Obligation Bonds, Series 2011A, 6.000%, 7/01/30  –  AGM Insured   7/21 at 100.00 AA 1,551,552
2,895   Pima County Unified School District 12 Sunnyside, Arizona, General Obligation Bonds, School Improvement Project 2011, Series 2014D, 5.000%, 7/01/34  –  AGM Insured   7/24 at 100.00 AA 3,288,025
1,750   Pima County Unified School District 6 Marana, Arizona, General Obligation Bonds, School Improvement Project 2010 Series 2011A, 5.000%, 7/01/25   7/21 at 100.00 A 1,928,973
1,500   Pima County Unified School District 6 Marana, Arizona, General Obligation Bonds, School Improvement Project of 2014, Series 2017C, 5.000%, 7/01/36  –  BAM Insured   7/27 at 100.00 AA 1,743,975

Principal Amount (000)   Description (1)   Optional Call Provisions (2) Ratings (3) Value
    Tax Obligation/General (continued)        
    Pinal County School District 4 Casa Grande Elementary, Arizona, General Obligation Bonds, School improvement Project 2016, Series 2017A:        
$ 620   5.000%, 7/01/34  –  BAM Insured   7/27 at 100.00 AA $719,163
1,000   5.000%, 7/01/35  –  BAM Insured   7/27 at 100.00 AA 1,156,350
    Western Maricopa Education Center District 402, Maricopa County, Arizona, General Obligation Bonds, School Improvement Project 2012, Series2014B:        
715   4.500%, 7/01/33   7/24 at 100.00 AA- 788,423
665   4.500%, 7/01/34   7/24 at 100.00 AA- 731,187
25,735   Total Tax Obligation/General       29,211,750
    Tax Obligation/Limited – 32.9% (21.6% of Total Investments)        
2,310   Arizona Sports and Tourism Authority, Tax Revenue Bonds, Multipurpose Stadium Facility Project, Refunding Senior Series 2012A, 5.000%, 7/01/36   7/22 at 100.00 A1 2,471,376
1,250   Arizona State Transportation Board, Highway Revenue Bonds, Refunding Series 2016, 5.000%, 7/01/35   7/26 at 100.00 AAA 1,475,025
275   Buckeye, Arizona, Excise Tax Revenue Obligations, Refunding Series 2016, 4.000%, 7/01/36   7/26 at 100.00 AA 289,479
1,000   Buckeye, Arizona, Excise Tax Revenue Obligations, Series 2015, 5.000%, 7/01/37   7/25 at 100.00 AA 1,125,940
135   Cahava Springs Revitalization District, Cave Creek, Arizona, Special Assessment Bonds, Series 2017A, 144A, 7.000%, 7/01/41   7/27 at 100.00 N/R 138,106
1,210   Eastmark Community Facilities District 1, Mesa, Arizona, General Obligation Bonds, Series 2015, 144A, 5.000%, 7/15/39   7/25 at 100.00 N/R 1,205,184
488   Eastmark Community Facilities District 1, Mesa, Arizona, Special Assessment Revenue Bonds, Assessment District 1, Series 2013, 5.250%, 7/01/38   7/23 at 100.00 N/R 496,701
1,810   Eastmark Community Facilities District No. 1, Arizona, General Obligation Bonds, Series 2017, 5.000%, 7/15/42  –  AGM Insured   7/27 at 100.00 AA 2,061,662
    Estrella Mountain Ranch Community Facilities District, Arizona, Special Assessment Bonds, Montecito Assessment District, Series 2007:        
840   5.700%, 7/01/27   2/18 at 100.00 N/R 835,069
948   5.800%, 7/01/32   2/18 at 100.00 N/R 942,426
655   Estrella Mountain Ranch Community Facilities District, Goodyear, Arizona, General Obligation Bonds, Refunding Series 2017, 5.000%, 7/15/32  –  AGM Insured   7/27 at 100.00 AA 750,722
458   Estrella Mountain Ranch Community Facilities District, Goodyear, Arizona, Special Assessment Lien Bonds, Series 2001A, 7.875%, 7/01/25   2/18 at 100.00 N/R 458,779
    Festival Ranch Community Facilities District, Buckeye, Arizona, General Obligation Bonds, Series 2012:        
345   5.000%, 7/15/27  –  BAM Insured   7/22 at 100.00 AA 382,198
1,085   5.000%, 7/15/31  –  BAM Insured   7/22 at 100.00 AA 1,194,032
500   Festival Ranch Community Facilities District, Buckeye, Arizona, General Obligation Bonds, Series 2016, 4.000%, 7/15/36  –  BAM Insured   7/26 at 100.00 AA 527,580
1,000   Festival Ranch Community Facilities District, Buckeye, Arizona, General Obligation Bonds, Series 2017, 5.000%, 7/15/37  –  BAM Insured   7/27 at 100.00 AA 1,139,920
425   Festival Ranch Community Facilities District, Buckeye, Arizona, Special Assessment Revenue Bonds, Assessment District 11, Series 2017, 5.200%, 7/01/37   7/27 at 100.00 N/R 435,944
600   Goodyear Community Facilities Utilities District 1, Arizona, General Obligation Bonds, Refunding Series 2016, 4.000%, 7/15/32   7/26 at 100.00 A1 642,408

Principal Amount (000)   Description (1)   Optional Call Provisions (2) Ratings (3) Value
    Tax Obligation/Limited (continued)        
$ 1,500   Goodyear, Arizona, Community Facilities General District 1, Arizona, General Obligation Refunding Bonds, Series 2013, 5.000%, 7/15/23   No Opt. Call A- $1,667,670
1,500   Government of Guam, Business Privilege Tax Bonds, Refunding Series 2015D, 5.000%, 11/15/39   11/25 at 100.00 A 1,628,865
    Government of Guam, Business Privilege Tax Bonds, Series 2011A:        
510   5.000%, 1/01/31   1/22 at 100.00 A 541,156
200   5.125%, 1/01/42   1/22 at 100.00 A 210,750
1,500   Government of Guam, Business Privilege Tax Bonds, Series 2012B-1, 5.000%, 1/01/37   1/22 at 100.00 A 1,578,900
1,250   Guam Government, Limited Obligation Section 30 Revenue Bonds, Series 2016A, 5.000%, 12/01/46   12/26 at 100.00 BBB+ 1,362,350
1,425   Marana, Arizona, Pledged Excise Tax Revenue Bonds, Refunding Series 2013, 5.000%, 7/01/33   7/23 at 100.00 AA 1,589,644
115   Merrill Ranch Community Facilities District 1, Florence, Arizona, General Obligation Bonds, Series 2008A, 7.400%, 7/15/33   7/18 at 100.00 BBB- 117,957
200   Merrill Ranch Community Facilities District 2, Florence, Arizona, General Obligation Bonds, Series 2016, 5.000%, 7/15/31   7/26 at 100.00 BBB 225,946
385   Merrill Ranch Community Facilities District 2, Florence, Arizona, General Obligation Bonds, Series 2017, 5.000%, 7/15/42  –  BAM Insured   7/27 at 100.00 AA 434,134
300   Page, Arizona, Pledged Revenue Bonds, Refunding Series 2011, 5.000%, 7/01/26   7/21 at 100.00 AA- 330,681
400   Parkway Community Facilities District 1, Prescott Valley, Arizona, General Obligation Bonds, Series 2006, 5.350%, 7/15/31   2/18 at 100.00 N/R 352,884
1,010   Phoenix Civic Improvement Corporation, Arizona, Transit Excise Tax Revenue Refunding Bonds, Light Rail Project, Series 2013, 5.000%, 7/01/20   No Opt. Call AA 1,094,143
2,500   Phoenix Industrial Development Authority, Arizona, Education Facility Revenue Bonds, JMF-Higley 2012 LLC Project, Series 2012, 5.000%, 12/01/36   12/22 at 100.00 A 2,746,000
580   Phoenix Mesa Gateway Airport Authority, Arizona, Special Facility Revenue Bonds, Mesa Project, Series 2012, 5.000%, 7/01/38 (Alternative Minimum Tax)   7/22 at 100.00 AA+ 633,122
565   Pinal County Industrial Development Authority, Arizona, Correctional Facilities Contract Revenue Bonds, Florence West Prison LLC, Series 2002A, 5.000%, 10/01/18  –  ACA Insured   2/18 at 100.00 BBB- 565,390
1,000   Pinal County, Arizona, Pledged Revenue Obligations, Series 2014, 5.000%, 8/01/33   8/24 at 100.00 AA 1,140,580
    Queen Creek, Arizona, Excise Tax & State Shared Revenue Obligation Bonds, Refunding Series 2016:        
540   4.000%, 8/01/34   8/26 at 100.00 AA 574,528
545   4.000%, 8/01/36   8/26 at 100.00 AA 576,038
1,000   Regional Public Transportation Authority, Arizona, Transportation Excise Tax Revenue Bonds, Maricopa County Public Transportation Fund Series 2014, 5.250%, 7/01/22   No Opt. Call AA+ 1,151,800
    San Luis, Arizona, Pledged Excise Tax Revenue Bonds, Refunding Series2014A:        
1,400   5.000%, 7/01/34  –  BAM Insured   7/24 at 100.00 AA 1,590,064
2,100   5.000%, 7/01/38  –  BAM Insured   7/24 at 100.00 AA 2,381,043
3,000   Scottsdale Municipal Property Corporation, Arizona, Excise Tax Revenue Bonds, Refunding Series 2006, 5.000%, 7/01/24   No Opt. Call AAA 3,568,140
1,320   Scottsdale Municipal Property Corporation, Arizona, Excise Tax Revenue Bonds, Refunding Series 2017, 5.000%, 7/01/36   7/27 at 100.00 AAA 1,575,855
1,820   Tartesso West Community Facility District, Buckeye, Arizona, Limited Tax General Obligation Bonds, Series 2007, 5.900%, 7/15/32   2/18 at 100.00 N/R 1,809,353

Principal Amount (000)   Description (1)   Optional Call Provisions (2) Ratings (3) Value
    Tax Obligation/Limited (continued)        
    Tempe, Arizona, Excise Tax Revenue Bonds, Refunding Series 2016:        
$ 310   5.000%, 7/01/28   7/26 at 100.00 AAA $371,860
600   5.000%, 7/01/31   7/26 at 100.00 AAA 709,530
4,000   Tempe, Arizona, Transit Excise Tax Revenue Obligation Bonds, Refunding Series 2012, 5.000%, 7/01/37   7/22 at 100.00 AAA 4,479,320
1,750   Virgin Islands Public Finance Authority, Gross Receipts Taxes Loan Note, Refunding Series 2012A, 4.000%, 10/01/22  –  AGM Insured   No Opt. Call AA 1,776,425
750   Vistancia West Community Facilities District, Peoria, Arizona, General Obligation Bonds, Series 2016, 144A, 3.250%, 7/15/25   7/21 at 100.00 N/R 718,305
1,346   Watson Road Community Facilities District, Arizona, Special Assessment Revenue Bonds, Series 2005, 6.000%, 7/01/30   2/18 at 100.00 N/R 1,304,745
50,755   Total Tax Obligation/Limited       55,379,729
    Transportation – 6.2% (4.1% of Total Investments)        
180   Phoenix Civic Improvement Corporation, Arizona, Airport Revenue Bonds, Junior Lien Series 2010A, 5.000%, 7/01/40   7/20 at 100.00 A+ 195,424
    Phoenix Civic Improvement Corporation, Arizona, Airport Revenue Bonds, Junior Lien Series 2015A:        
910   5.000%, 7/01/40   7/25 at 100.00 A+ 1,039,766
2,185   5.000%, 7/01/45   7/25 at 100.00 A+ 2,488,628
    Phoenix Civic Improvement Corporation, Arizona, Airport Revenue Bonds, Refunding Senior Lien Series 2013:        
1,785   5.000%, 7/01/30 (Alternative Minimum Tax)   7/23 at 100.00 AA- 2,002,020
2,215   5.000%, 7/01/32 (Alternative Minimum Tax)   7/23 at 100.00 AA- 2,469,703
2,000   Phoenix Civic Improvement Corporation, Arizona, Airport Revenue Bonds, Senior Lien Series 2017A, 5.000%, 7/01/42 (Alternative Minimum Tax)   7/27 at 100.00 AA- 2,305,520
9,275   Total Transportation       10,501,061
    U.S. Guaranteed – 16.5% (10.8% of Total Investments) (6)        
1,025   Arizona State Transportation Board, Highway Revenue Bonds, Refunding Subordinate Series 2011A, 5.000%, 7/01/36 (Pre-refunded 7/01/21)   7/21 at 100.00 AA+ (6) 1,142,588
1,265   Gila County Unified School District 10 Payson, Arizona, School Improvement Bonds, Project 2006, Series 2008B, 5.750%, 7/01/28 (Pre-refunded 7/01/18)   7/18 at 100.00 Aa3 (6) 1,297,207
960   Merrill Ranch Community Facilities District 1, Florence, Arizona, General Obligation Bonds, Series 2008A, 7.400%, 7/15/33 (Pre-refunded 7/15/18)   7/18 at 100.00 N/R (6) 992,342
585   Phoenix Industrial Development Authority, Arizona, Education Facility Revenue Bonds, Great Hearts Academies - Veritas Project, Series 2012, 6.300%, 7/01/42 (Pre-refunded 7/01/21)   7/21 at 100.00 BB+ (6) 677,284
1,045   Phoenix Industrial Development Authority, Arizona, Education Facility Revenue Bonds, Painted Rock Academy Charter School Project, Series 2012A, 7.500%, 7/01/42 (Pre-refunded 7/01/20)   7/20 at 100.00 N/R (6) 1,197,904
    Pima County Industrial Development Authority, Arizona, Education Revenue Bonds, Paradise Education Center Project, Series 2010:        
745   6.000%, 6/01/40 (Pre-refunded 6/01/19)   6/19 at 100.00 BB+ (6) 793,015
550   6.100%, 6/01/45 (Pre-refunded 6/01/19)   6/19 at 100.00 BB+ (6) 586,251

Principal Amount (000)   Description (1)   Optional Call Provisions (2) Ratings (3) Value
    U.S. Guaranteed (6) (continued)        
$ 1,000   Pima County Industrial Development Authority, Arizona, Educational Revenue Bonds, Valley Academy Charter School Project, Series 2008, 6.500%, 7/01/38 (Pre-refunded 7/01/18)   7/18 at 100.00 Baa3 (6) $1,029,440
1,000   Pima County Unified School District 8 Flowing Wells, Arizona, General Obligation Bonds, School Improvement Project 2008 Series 2011B, 5.375%, 7/01/29 (Pre-refunded 7/01/20)   7/20 at 100.00 A+ (6) 1,094,310
1,800   Pinal County Electrical District 3, Arizona, Electric System Revenue Bonds, Refunding Series 2011, 5.250%, 7/01/36 (Pre-refunded 7/01/21)   7/21 at 100.00 A (6) 2,022,030
2,530   Pinal County Unified School District 1, Florence, Arizona, General Obligation Bonds, Series 2008C, 5.250%, 7/01/28 (Pre-refunded 7/01/18)   7/18 at 100.00 A (6) 2,585,711
5,000   Scottsdale Municipal Property Corporation, Arizona, Excise Tax Revenue Bonds, Water & Sewer Improvements Project, Series 2010, 5.000%, 7/01/36 (Pre-refunded 7/01/20)   7/20 at 100.00 AAA 5,431,100
    Scottsdale, Arizona, General Obligation Bonds, Preserve Acquisition Series 1999:        
1,310   5.000%, 7/01/32 (Pre-refunded 7/01/21)   7/21 at 100.00 AAA 1,460,283
1,360   5.000%, 7/01/33 (Pre-refunded 7/01/21)   7/21 at 100.00 AAA 1,516,019
1,705   5.000%, 7/01/34 (Pre-refunded 7/01/21)   7/21 at 100.00 AAA 1,900,598
2,585   University Medical Center Corporation, Tucson, Arizona, Hospital Revenue Bonds, Series 2011, 6.000%, 7/01/39 (Pre-refunded 7/01/21)   7/21 at 100.00 N/R (6) 2,961,169
    University Medical Center Corporation, Tucson, Arizona, Hospital Revenue Bonds, Series 2013:        
200   5.000%, 7/01/19 (ETM)   No Opt. Call N/R (6) 210,308
800   5.000%, 7/01/20 (ETM)   No Opt. Call N/R (6) 865,808
25,465   Total U.S. Guaranteed       27,763,367
    Utilities – 17.9% (11.8% of Total Investments)        
1,495   Apache County Industrial Development Authority, Arizona, Pollution Control Revenue Bonds, Tucson Electric Power Company, Series 20102A, 4.500%, 3/01/30   3/22 at 100.00 A- 1,631,583
1,000   Guam Power Authority, Revenue Bonds, Series 2014A, 5.000%, 10/01/39   10/24 at 100.00 AA 1,102,480
4,310   Maricopa County Pollution Control Corporation, Arizona, Pollution Control Revenue Refunding Bonds, Southern California Edison Company, Series 2000A, 5.000%, 6/01/35   6/20 at 100.00 Aa3 4,593,469
695   Pinal County Electrical District 3, Arizona, Electric System Revenue Bonds, Refunding Series 2016, 5.000%, 7/01/35   7/26 at 100.00 A 802,232
1,500   Salt River Project Agricultural Improvement and Power District, Arizona, Electric System Revenue Bonds, Refunding Series 2015A, 5.000%, 12/01/36   6/25 at 100.00 Aa1 1,744,740
    Salt River Project Agricultural Improvement and Power District, Arizona, Electric System Revenue Bonds, Series 2017A:        
1,250   5.000%, 1/01/38   1/28 at 100.00 Aa1 1,491,150
1,250   5.000%, 1/01/39   1/28 at 100.00 Aa1 1,488,725
2,500   Salt River Project Agricultural Improvement and Power District, Arizona, Electric System Revenue Bonds, Tender Option Bond Trust 2016-XL0016, 144A, 15.360%, 1/01/38 (IF) (5)   1/18 at 100.00 Aa1 2,528,425
    Salt Verde Financial Corporation, Arizona, Senior Gas Revenue Bonds, Citigroup Energy Inc. Prepay Contract Obligations, Series 2007:        
4,500   5.500%, 12/01/29   No Opt. Call BBB+ 5,549,310
5,665   5.000%, 12/01/37   No Opt. Call BBB+ 6,916,398

Principal Amount (000)   Description (1)   Optional Call Provisions (2) Ratings (3) Value
    Utilities (continued)        
$ 2,370   Yuma County Industrial Development Authority, Arizona, Exempt Revenue Bonds, Far West Water & Sewer Inc. Refunding, Series 2007A, 6.375%, 12/01/37 (Alternative Minimum Tax)   12/17 at 100.00 N/R $ 2,309,423
26,535   Total Utilities       30,157,935
    Water and Sewer – 12.9% (8.4% of Total Investments)        
1,000   Central Arizona Water Conservation District, Arizona, Water Delivery O&M Revenue Bonds, Series 2016, 5.000%, 1/01/36   1/26 at 100.00 AA+ 1,154,090
500   Glendale, Arizona, Water and Sewer Revenue Bonds, Refunding Series 2012, 5.000%, 7/01/28   7/22 at 100.00 AA 567,605
1,235   Goodyear, Arizona, Water and Sewer Revenue Obligations, Refunding Subordinate Lien Series 2016, 5.000%, 7/01/45  –  AGM Insured   7/26 at 100.00 AA 1,408,481
2,855   Goodyear, Arizona, Water and Sewer Revenue Obligations, Series 2010, 5.625%, 7/01/39   7/20 at 100.00 A+ 3,119,459
500   Goodyear, Arizona, Water and Sewer Revenue Obligations, Subordinate Lien Series 2011, 5.500%, 7/01/41   7/21 at 100.00 AA 556,965
665   Guam Government Waterworks Authority, Water and Wastewater System Revenue Bonds, Refunding Series 2017, 5.000%, 7/01/36 (WI/DD, Settling 12/20/17)   7/27 at 100.00 A- 744,035
545   Guam Government Waterworks Authority, Water and Wastewater System Revenue Bonds, Series 2013, 5.250%, 7/01/33   7/23 at 100.00 A- 596,846
1,125   Lake Havasu City, Arizona, Wastewater System Revenue Bonds, Refunding Senior Lien Series 2015A, 5.000%, 7/01/36  –  AGM Insured   7/25 at 100.00 AA 1,291,196
1,135   Phoenix Civic Improvement Corporation, Arizona, Wastewater System Revenue Bonds, Refunding Junior Lien Series 2014, 5.000%, 7/01/29   7/24 at 100.00 AA+ 1,327,019
2,000   Phoenix Civic Improvement Corporation, Arizona, Water System Revenue Bonds, Junior Lien Series 2014A, 5.000%, 7/01/39   7/24 at 100.00 AAA 2,279,260
    Phoenix Civic Improvement Corporation, Arizona, Water System Revenue Bonds, Refunding Junior Lien Series 2001:        
1,250   5.500%, 7/01/21  –  FGIC Insured   No Opt. Call AAA 1,414,525
1,040   5.500%, 7/01/22  –  FGIC Insured   No Opt. Call AAA 1,208,750
1,500   Pima County, Arizona, Sewer System Revenue Obligations, Series 2012A, 5.000%, 7/01/26   7/22 at 100.00 AA 1,696,485
1,000   Pima County, Arizona, Sewer System Revenue Obligations, Series 2014, 5.000%, 7/01/22   No Opt. Call AA 1,136,620
    Surprise Municipal Property Corporation, Arizona, Wastewater System Revenue Bonds, Series 2007:        
605   4.700%, 4/01/22   4/18 at 100.00 A+ 612,617
1,970   4.900%, 4/01/32   2/18 at 100.00 A+ 1,982,648
500   Tucson, Arizona, Water System Revenue Bonds, Refunding Series 2013A, 5.000%, 7/01/23   No Opt. Call AA 581,620
19,425   Total Water and Sewer       21,678,221
$ 231,618   Total Long-Term Investments (cost $241,869,877)       256,653,268
    Floating Rate Obligations – (1.6)%       (2,755,000)
    Variable Rate MuniFund Term Preferred Shares, net of deferred offering costs – (52.4)% (7)       (88,286,382)
    Other Assets Less Liabilities – 1.5%       2,738,778
    Net Asset Applicable to Common Shares – 100%       $ 168,350,664

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 $ — $256,653,268 $ — $256,653,268
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 November 30, 2017.
Tax cost of investments $240,680,062
Gross unrealized:  
Appreciation $ 16,379,438
Depreciation (3,161,242)
Net unrealized appreciation (depreciation) of investments $ 13,218,196
(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) 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) Investment, or portion of investment, has been pledged to collateralize the net payment obligations for investments in inverse floating rate transactions.  
(6) Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities, which ensure the timely payment of principal and interest. Certain bonds backed by U.S. Government or agency securities are not rated by national ratings agencies and are regarded as having an implied rating equal to the rating of the U.S. Government or agency.  
(7) Variable Rate MuniFund Term Preferred Shares, net of deferred offering costs as a percentage of Total Investments is 34.4%.  
144A Investment 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.  
ETM Escrowed to maturity.  
IF Inverse 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.  
UB Underlying bond of an inverse floating rate trust reflected as a financing transaction.  
WI/DD Investment, or portion of investment, purchased on a when-issued or delayed delivery basis.  

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

Date: January 29, 2018

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: January 29, 2018      
By (Signature and Title)    /s/ Stephen D. Foy                                                                    
   Stephen D. Foy   
   Vice President and Controller (principal financial officer)   
Date: January 29, 2018