N-Q 1 nq2.htm NRB_NQ Unassociated Document



 
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 811-09461
 
Nuveen North Carolina Dividend Advantage Municipal 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)
 

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:            5/31          
 
Date of reporting period:         2/28/10         
 
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 (Unaudited)       
  Nuveen North Carolina Dividend Advantage Municipal Fund (NRB)       
  February 28, 2010       
Principal    Optional Call     
Amount (000)  Description (1)  Provisions (2)  Ratings (3)  Value 
  Education and Civic Organizations – 14.4% (8.7% of Total Investments)       
$      380  North Carolina Capital Facilities Financing Agency, Revenue Bonds, Duke University, Series  10/11 at 100.00  AA+  $    389,177 
  2001A, 5.125%, 10/01/26       
125  North Carolina Capital Facilities Financing Agency, Revenue Bonds, High Point University,  9/11 at 101.00  Ba2  117,670 
  Series 2001, 5.125%, 9/01/18       
1,430  University of North Carolina System, Pooled Revenue Refunding Bonds, Series 2002A, 5.375%,  10/12 at 100.00  A+  1,551,336 
  4/01/17 – AMBAC Insured       
1,750  University of North Carolina, Chapel Hill, System Net Revenue Bonds, Series 2001A,  6/11 at 100.00  AA+  1,827,595 
  5.000%, 12/01/25       
1,000  University of North Carolina, Chapel Hill, System Net Revenue Bonds, Series 2002B,  No Opt. Call  AA+  1,080,250 
  5.000%, 12/01/11       
4,685  Total Education and Civic Organizations      4,966,028 
  Health Care – 18.9% (11.4% of Total Investments)       
555  Albemarle Hospital Authority, North Carolina, Health Care Facilities Revenue Bonds, Series  10/17 at 100.00  N/R  425,618 
  2007, 5.250%, 10/01/38       
250  Johnston Memorial Hospital Authority, North Carolina, Mortgage Revenue Bonds, Johnston  4/18 at 100.00  AAA  255,275 
  Memorial Hospital Project, Series 2008A, 5.250%, 10/01/36 – AGM Insured       
30  New Hanover County, North Carolina, Hospital Revenue Bonds, New Hanover Regional Medical  10/19 at 100.00  AAA  30,765 
  Center, Series 2006B, 5.125%, 10/01/31 – AGM Insured       
280  North Carolina Medical Care Commission Health Care Facilities Revenue Bonds (WakeMed), Series  10/14 at 100.00  AAA  288,252 
  2009A, 5.625%, 10/01/38 – AGC Insured       
1,110  North Carolina Medical Care Commission, Healthcare Facilities Revenue Bonds, Union Regional  1/12 at 100.00  A  1,150,249 
  Medical Center, Series 2002A, 5.250%, 1/01/15       
980  North Carolina Medical Care Commission, Healthcare Revenue Bonds, Carolina Medicorp, Series  5/10 at 100.00  A+  980,666 
  1996, 5.250%, 5/01/26       
1,500  North Carolina Medical Care Commission, Hospital Revenue Bonds, Southeastern Regional Medical  6/12 at 101.00  A  1,516,440 
  Center, Series 2002, 5.250%, 6/01/22       
500  North Carolina Medical Care Commission, Hospital Revenue Bonds, Wilson Medical Center, Series  11/17 at 100.00  A–  511,485 
  2007, 5.000%, 11/01/20       
250  North Carolina Medical Care Commission, Revenue Bonds, Blue Ridge Healthcare System, Series  1/15 at 100.00  A+  247,298 
  2005, 5.000%, 1/01/33 – FGIC Insured       
150  Northern Hospital District of Surry County, North Carolina, Health Care Facilities Revenue  4/18 at 100.00  BBB  151,697 
  Bonds, Series 2008, 6.250%, 10/01/38       
950  The Charlotte-Mecklenberg Hospital Authority, North Carolina, Doing Business as Carolinas  1/18 at 100.00  AA–  954,247 
  HealthCare System, Health Care Refunding Revenue Bonds, Series 2008A, 5.000%, 1/15/47       
6,555  Total Health Care      6,511,992 
  Housing/Single Family – 4.5% (2.7% of Total Investments)       
385  North Carolina Housing Finance Agency, Home Ownership Revenue Bonds, 1998 Trust Agreement,  7/10 at 100.00  AA  385,431 
  Series 10A, 5.400%, 7/01/32 – AMBAC Insured (Alternative Minimum Tax)       
615  North Carolina Housing Finance Agency, Home Ownership Revenue Bonds, 1998 Trust Agreement,  7/10 at 100.00  AA  615,277 
  Series 5A, 5.625%, 7/01/30 (Alternative Minimum Tax)       
250  North Carolina Housing Finance Agency, Home Ownership Revenue Bonds, Series 2007-29A, 4.800%,  1/17 at 100.00  AA  241,470 
  7/01/33 (Alternative Minimum Tax)       
330  North Carolina Housing Finance Agency, Home Ownership Revenue Bonds, Series 25-A, 4.900%,  7/16 at 100.00  AA  318,886 
  7/01/37 (Alternative Minimum Tax)       
1,580  Total Housing/Single Family      1,561,064 
  Long-Term Care – 1.7% (1.1% of Total Investments)       
  North Carolina Medical Care Commission, Healthcare Facilities Revenue Bonds, Presbyterian       
  Homes, Series 2006:       
200  5.400%, 10/01/27  10/16 at 100.00  N/R  189,970 
300  5.500%, 10/01/31  10/16 at 100.00  N/R  275,169 
150  North Carolina Medical Care Commission, Revenue Bonds, Pines at Davidson, Series 2006A,  1/16 at 100.00  N/R  137,201 
  5.000%, 1/01/36       
650  Total Long-Term Care      602,340 
  Materials – 1.0% (0.6% of Total Investments)       
400  Columbus County Industrial Facilities and Pollution Control Financing Authority, North  3/17 at 100.00  BBB  334,712 
  Carolina, Environmental Improvement Revenue Bonds, International Paper Company Project,       
  Series 2007A, 4.625%, 3/01/27       
  Tax Obligation/General – 11.4% (6.9% of Total Investments)       
1,000  Durham, North Carolina, General Obligation Bonds, Series 2007, 5.000%, 4/01/21  4/17 at 100.00  AAA  1,133,800 
  North Carolina, General Obligation Bonds, Series 2004A:       
1,000  5.000%, 3/01/18  3/14 at 100.00  AAA  1,125,940 
1,000  5.000%, 3/01/22  3/14 at 100.00  AAA  1,094,110 
550  Wake County, North Carolina, Limited Obligation Bonds, Series 2010, 5.000%, 1/01/37  1/20 at 100.00  AA+  577,231 
3,550  Total Tax Obligation/General      3,931,081 
  Tax Obligation/Limited – 26.8% (16.1% of Total Investments)       
1,400  Charlotte, North Carolina, Certificates of Participation, Governmental Facilities Projects,  6/13 at 100.00  AA+  1,476,454 
  Series 2003G, 5.375%, 6/01/26 (UB)       
200  Charlotte, North Carolina, Certificates of Participation, Nascar Hall of Fame, Series 2009C,  6/19 at 100.00  AA+  206,728 
  5.000%, 6/01/39       
305  Charlotte, North Carolina, Certificates of Participation, Transit Projects Phase 2, Series  6/18 at 100.00  AA+  315,193 
  2008A, 5.000%, 6/01/33       
160  Craven County, North Carolina, Certificates of Participation, Series 2007, 5.000%, 6/01/23 –  6/17 at 100.00  AA–  170,677 
  NPFG Insured       
1,870  Dare County, North Carolina, Certificates of Participation, Series 2002, 5.250%, 6/01/15 –  12/12 at 100.00  AA–  2,063,826 
  AMBAC Insured       
1,250  Davidson County, North Carolina, Certificates of Participation, Series 2004, 5.250%, 6/01/21 –  6/14 at 100.00  A+  1,316,625 
  AMBAC Insured       
1,390  Durham, North Carolina, Certificates of Participation, Series 2005B, 5.000%, 6/01/25  6/15 at 100.00  AA+  1,451,007 
50  Harnett County, North Carolina, Certificates of Participation, Series 2009, 5.000%, 6/01/28 –  6/19 at 100.00  AAA  52,766 
  AGC Insured       
525  Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, First Subordinate Series  No Opt. Call  A+  100,202 
  2010A, 0.000%, 8/01/35       
470  Raleigh, North Carolina, Certificates of Participation, Downtown Improvement Project, Series  6/14 at 100.00  AA+  502,848 
  2004B, 5.000%, 6/01/20       
170  Raleigh, North Carolina, Certificates of Participation, Series 2007, 5.000%, 2/01/27  2/17 at 100.00  AA+  180,620 
150  Rutherford County, North Carolina, Certificates of Participation, Series 2007, 5.000%,  12/17 at 100.00  AAA  158,789 
  12/01/27 – AGM Insured       
700  Sampson County, North Carolina, Certificates of Participation, Series 2006, 5.000%, 6/01/34 –  6/17 at 100.00  AAA  713,608 
  AGM Insured (UB)       
250  Wilmington, North Carolina, Certificates of Participation, Series 2008A, 5.000%, 6/01/29  6/18 at 100.00  AA  264,185 
250  Wilson County, North Carolina, Certificates of Participation, School Facilities Project,  4/17 at 100.00  A2  259,668 
  Series 2007, 5.000%, 4/01/25 – AMBAC Insured       
9,140  Total Tax Obligation/Limited      9,233,196 
  Transportation – 11.8% (7.1% of Total Investments)       
1,000  Charlotte, North Carolina, Airport Revenue Bonds, Series 2010A, 5.000%, 7/01/39  7/20 at 100.00  A+  1,006,360 
360  North Carolina State Ports Authority, Port Facilities Revenue Bonds, Senior Lien Series 2010A,  2/20 at 100.00  A3  362,174 
  5.250%, 2/01/40 (WI/DD, Settling 3/11/10)       
250  North Carolina Turnpike Authority, Triangle Expressway System Senior Lien Revenue Bonds,  1/19 at 100.00  AAA  266,383 
  Series 2009A, 5.750%, 1/01/39 – AGC Insured       
2,170  North Carolina Turnpike Authority, Triangle Expressway System Senior Lien Revenue Bonds,  No Opt. Call  AAA  557,603 
  Series 2009B, 0.000%, 1/01/34 – AGC Insured       
300  Piedmont Triad Airport Authority, North Carolina, Airport Revenue Bonds, Series 2005A, 5.000%,  7/15 at 100.00  A2  318,003 
  7/01/20 – SYNCORA GTY Insured       
1,530  Raleigh Durham Airport Authority, North Carolina, Airport Revenue Bonds, Series 2001A, 5.250%,  5/11 at 101.00  Aa3  1,578,103 
  11/01/18 – FGIC Insured       
5,610  Total Transportation      4,088,626 
  U.S. Guaranteed – 13.6% (8.2% of Total Investments) (4)       
1,000  Broad River Water Authority, North Carolina, Water System Revenue Bonds, Series 2000, 5.375%,  6/10 at 101.00  Baa1 (4)  1,023,490 
  6/01/26 (Pre-refunded 6/01/10) – MBIA Insured       
100  Charlotte-Mecklenburg Hospital Authority, North Carolina, Healthcare System Revenue Bonds, DBA  1/15 at 100.00  AAA  116,758 
  Carolinas Healthcare System, Series 2005A, 5.000%, 1/15/45 (Pre-refunded 1/15/15)       
500  Greensboro, North Carolina, Combined Enterprise System Revenue Bonds, Series 2001A, 5.125%,  6/11 at 101.00  AAA  535,225 
  6/01/21 (Pre-refunded 6/01/11)       
620  North Carolina Capital Facilities Financing Agency, Revenue Bonds, Duke University, Series  10/11 at 100.00  AAA  665,917 
  2001A, 5.125%, 10/01/26 (Pre-refunded 10/01/11)       
800  North Carolina Medical Care Commission, Health System Revenue Bonds, Mission St. Joseph’s  10/11 at 101.00  AA (4)  868,376 
  Health System, Series 2001, 5.250%, 10/01/31 (Pre-refunded 10/01/11)       
300  North Carolina Medical Care Commission, Revenue Bonds, Northeast Medical Center, Series 2004,  11/14 at 100.00  Aa3 (4)  350,064 
  5.000%, 11/01/24 (Pre-refunded 11/01/14)       
1,020  University of North Carolina System, Pooled Revenue Refunding Bonds, Series 2002A, 5.375%,  10/12 at 100.00  N/R (4)  1,141,247 
  4/01/17 (Pre-refunded 10/01/12) – AMBAC Insured       
4,340  Total U.S. Guaranteed      4,701,077 
  Utilities – 18.2% (10.9% of Total Investments)       
  Greenville, North Carolina, Combined Enterprise System Revenue Bonds, Series 2001:       
1,000  5.250%, 9/01/20 – AGM Insured  9/11 at 101.00  AAA  1,070,440 
500  5.250%, 9/01/21 – AGM Insured  9/11 at 101.00  AAA  529,970 
500  North Carolina Eastern Municipal Power Agency, Power System Revenue Bonds, Series 2005,  1/16 at 100.00  A–  532,005 
  5.250%, 1/01/20 – AMBAC Insured       
2,500  North Carolina Eastern Municipal Power Agency, Power System Revenue Refunding Bonds, Series  7/10 at 100.00  Baa1  2,504,125 
  1993B, 5.500%, 1/01/17 – FGIC Insured       
25  North Carolina Municipal Power Agency 1, Catawba Electric Revenue Bonds, Refunding Series  1/19 at 100.00  A  25,609 
  2009A, 5.000%, 1/01/30       
1,500  Wake County Industrial Facilities and Pollution Control Financing Authority, North Carolina,  2/12 at 101.00  A1  1,600,665 
  Revenue Refunding Bonds, Carolina Power and Light Company, Series 2002, 5.375%, 2/01/17       
6,025  Total Utilities      6,262,814 
  Water and Sewer – 43.6% (26.3% of Total Investments)       
100  Brunswick County, North Carolina, Enterprise System Revenue Bonds, Series 2008A, 5.000%,  4/18 at 100.00  AAA  103,701 
  4/01/31 – AGM Insured       
505  Cape Fear Public Utility Authority, North Carolina, Water & Sewer System Revenue Bonds, Series  8/18 at 100.00  AA  530,674 
  2008, 5.000%, 8/01/35       
2,250  Charlotte, North Carolina, Water and Sewerage System Revenue Bonds, Series 2001,  6/11 at 101.00  AAA  2,340,445 
  5.125%, 6/01/26       
1,000  Charlotte, North Carolina, Water and Sewerage System Revenue Bonds, Series 2008,  7/18 at 100.00  AAA  1,058,310 
  5.000%, 7/01/38       
500  Greensboro, North Carolina, Combined Enterprise System Revenue Bonds, Series 2005A,  6/15 at 100.00  AAA  537,510 
  5.000%, 6/01/25       
700  Oak Island, North Carolina, Enterprise System Revenue Bonds, Series 2009A, 6.000%, 6/01/34 –  6/19 at 100.00  AAA  758,898 
  AGC Insured       
400  Onslow County, North Carolina, Combined Enterprise System Revenue Bonds, Series 2004B, 5.000%,  6/14 at 100.00  A  416,884 
  6/01/23 – SYNCORA GTY Insured       
  Raleigh, North Carolina, Combined Enterprise System Revenue Bonds, Series 2006A:       
4,440  5.000%, 3/01/31 (UB)  3/16 at 100.00  AAA  4,700,761 
3,000  5.000%, 3/01/36 (UB)  3/16 at 100.00  AAA  3,136,920 
5  Raleigh, North Carolina, Combined Enterprise System Revenue Bonds, Series 2006A, Residuals  3/16 at 100.00  AAA  5,685 
  Series II-R-645-2, 13.979% 3/01/36 (IF)       
1,385  Winston-Salem, North Carolina, Water and Sewer System Revenue Bonds, Series 2007A,  6/17 at 100.00  AAA  1,447,921 
  5.000%, 6/01/37 (UB)       
14,285  Total Water and Sewer 15,037,709 
$      56,820  Total Investments (cost $55,120,261) – 165.9% 57,230,639 
  Floating Rate Obligations – (20.8)% (7,160,000)
  Other Assets Less Liabilities – 1.5% 506,778 
  Auction Rate Preferred Shares, at Liquidation Value – (46.6)% (5) (16,075,000)
  Net Assets Applicable to Common Shares – 100% $ 34,502,417 

 
 
 

Fair Value Measurements

In determining the value of the Fund’s investments, various inputs are used. These inputs are summarized in the three broad levels listed below:

  Level 1 – Quoted prices in active markets for identical securities.

  Level 2 – Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).

  Level 3 – Significant unobservable inputs (including management’s assumptions in determining the fair value of investments).

The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities. The following is a summary of the Fund’s fair value measurements as of February 28, 2010:

  Level 1  Level 2  Level 3  Total 
Investments:         
Municipal Bonds  $ —  $57,230,639  $ —  $57,230,639 

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.

At February 28, 2010, the cost of investments was $47,936,759.

Gross unrealized appreciation and gross unrealized depreciation of investments at February 28, 2010, were as follows:

Gross unrealized:   
  Appreciation  $2,347,436 
  Depreciation  (213,673)
Net unrealized appreciation (depreciation) of investments  $2,133,763 

(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 higher of Standard & Poor’s Group (“Standard & Poor’s”) or Moody’s Investor Service, 
  Inc. (“Moody’s”) rating. Ratings below BBB by Standard & Poor’s or Baa by Moody’s are considered to be 
  below investment grade. 
(4)  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. Such investments are normally considered to 
  be equivalent to AAA rated securities. 
(5)  Auction Rate Preferred Shares, at Liquidation Value as a percentage of Total Investments is 28.1%. 
N/R  Not rated. 
WI/DD  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 North Carolina Dividend Advantage Municipal Fund 
 
By (Signature and Title)     /s/ Kevin J. McCarthy                    
                                                   Kevin J. McCarthy
                                                   Vice President and Secretary
 
Date         April 29, 2010        
 
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         April 29, 2010        
 
By (Signature and Title)     /s/ Stephen D. Foy                              
                                                   Stephen D. Foy
                                                  Vice President and Controller (principal financial officer) 
 
Date        April 29, 2010