N-Q 1 e37524_nq.htm QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT
INVESTMENT COMPANY

Investment Company Act file number   811-3070

Hilliard-Lyons Government Fund, Inc.
(Exact name of registrant as specified in charter)

P.O. Box 32760
Louisville, Kentucky 40232-2760
(Address of principal executive offices) (Zip code)

Joseph C. Curry, Jr.
Hilliard-Lyons Government Fund, Inc.
P.O. Box 32760
Louisville, Kentucky 40232-2760
(Name and address of agent for service)

Registrant's telephone number, including area code: 502-588-8400

Date of fiscal year end: August 31

Date of reporting period: November 30, 2009

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.

HILLIARD-LYONS GOVERNMENT FUND, INC.
SCHEDULE OF INVESTMENTS
(UNAUDITED)
November 30, 2009

Principal
Amount
          Cash
Equivalent
Yield
    Maturity
Date
    Value   
 
   
U.S. GOVERNMENT SPONSORED ENTERPRISES* -- 81.1%***
      
 
$17,000,000   Federal Home Loan Bank   0.051 %     12/01/2009     $17,000,000  
17,000,000   Federal Home Loan Bank   0.056       12/02/2009     16,999,974  
8,000,000   Federal Home Loan Bank   0.348   (a)   12/02/2009 (b)   7,996,411  
20,000,000   Federal Home Loan Bank   0.056       12/03/2009     19,999,939  
20,000,000   Federal Home Loan Bank   0.096       12/04/2009     19,999,842  
20,000,000   Federal Home Loan Bank   0.066       12/07/2009     19,999,783  
21,500,000   Federal Home Loan Bank   0.264       12/08/2009     21,498,913  
18,000,000   Federal Home Loan Bank   0.106       12/09/2009     17,999,580  
18,000,000   Federal Home Loan Bank   0.030       12/10/2009     17,999,865  
20,000,000   Federal Home Loan Bank   0.071       12/11/2009     19,999,611  
45,000,000   Federal Farm Credit Bank   0.360   (a)   12/12/2009 (b)   45,000,000  
23,000,000   Federal Home Loan Bank   0.191   (a)   12/13/2009 (b)   22,998,963  
15,000,000   Federal Home Loan Bank   0.051       12/14/2009     14,999,729  
20,000,000   Federal Home Loan Bank   0.119   (a)   12/15/2009 (b)   19,998,391  
25,000,000   Federal Home Loan Bank   0.830   (a)   12/15/2009 (b)   25,000,000  
18,000,000   Federal Home Loan Bank   0.061       12/16/2009     17,999,550  
20,000,000   Federal Home Loan Bank   0.066       12/17/2009     19,999,422  
20,000,000   Federal Home Loan Bank   0.071       12/18/2009     19,999,339  
25,000,000   Federal Home Loan Bank   0.041       12/21/2009     24,999,444  
20,000,000   Federal Home Loan Bank   0.086       12/23/2009     19,998,961  
20,000,000   Federal Home Loan Bank   0.091       12/23/2009     19,998,900  
20,000,000   Federal Home Loan Bank   0.066       12/24/2009     19,999,169  
18,300,000   Federal Home Loan Bank   0.173   (a)   12/26/2009 (b)   18,286,627  
18,000,000   Federal Home Loan Bank   0.030       12/28/2009     17,999,595  
20,000,000   Federal Home Loan Bank   0.041       12/29/2009     19,999,378  
25,000,000   Federal Home Loan Bank   0.081       12/30/2009     24,998,389  
20,000,000   Federal Home Loan Bank   0.020       12/31/2009     19,999,667  
50,000,000   Federal Farm Credit Bank   0.350   (a)   01/01/2010 (b)   49,851,732  
27,565,000   Federal Home Loan Bank   0.294       01/04/2010     27,557,450  
64,500,000   Federal Farm Credit Bank   0.491   (a)   01/04/2010 (b)   64,484,553  
25,000,000   Federal Home Loan Bank   0.020       01/05/2010     24,999,514  
45,750,000   Federal Home Loan Bank   0.094   (a)   01/06/2010 (b)   45,744,954  
25,000,000   Federal Home Loan Bank   0.172       01/08/2010     24,993,725  
90,000,000   Federal Home Loan Bank   0.184   (a)   01/13/2010 (b)   90,010,885  
47,000,000   Federal Home Loan Bank   0.124   (a)   01/15/2010 (b)   47,007,565  
78,000,000   Federal Home Loan Bank   0.234   (a)   01/15/2010 (b)   77,997,022  
54,000,000   Federal Farm Credit Bank   0.327   (a)   01/20/2010 (b)   54,037,732  
20,000,000   Federal Home Loan Bank   0.076       01/22/2010     19,997,833  
33,600,000   Federal Farm Credit Bank   0.133   (a)   01/23/2010 (b)   33,590,341  
17,000,000   Federal Home Loan Bank   0.086       01/27/2010     16,997,712  
90,000,000   Federal Home Loan Bank   0.212   (a)   01/27/2010 (b)   89,998,865  
55,000,000   Federal Home Loan Bank   0.231   (a)   01/28/2010 (b)   55,004,791  


HILLIARD-LYONS GOVERNMENT FUND, INC.
SCHEDULE OF INVESTMENTS - continued
(UNAUDITED)
November 30, 2009

Principal
Amount
          Cash
Equivalent
Yield
    Maturity
Date
    Value
 
    U.S. GOVERNMENT SPONSORED ENTERPRISES* -- 81.1%***    
 
$55,000,000   Federal Farm Credit Bank   0.334% (a)   02/03/2010 (b)   $55,000,000    
25,000,000   Federal Farm Credit Bank   0.230 (a)   02/04/2010 (b)   24,999,025  
72,500,000   Federal Home Loan Bank   0.204 (a)   02/10/2010 (b)   72,484,642  
15,000,000   Federal Home Loan Bank   0.051     02/12/2010     14,998,479  
30,000,000   Federal Farm Credit Bank   0.750 (a)   02/12/2010 (b)   30,000,000  
66,030,000   Federal Home Loan Bank   0.235 (a)   02/19/2010 (b)   66,022,337  
19,000,000   Federal Home Loan Bank   0.061     02/22/2010     18,997,372  
 
    TOTAL U. S. GOVERNMENT SPONSORED ENTERPRISES    
    (at amortized cost -- $1,556,545,971)               1,556,545,971  
                   
 
 
    FDIC GUARANTEED CORPORATE FLOATING RATE NOTES** -- 17.5%***  
 
22,000,000   Bank of America NA   0.331 (a)   07/29/2010 (b)   22,055,077  
42,000,000   Citigroup Funding Inc.   0.381 (a)   07/30/2010 (b)   42,030,668  
30,000,000   Bank of America NA   0.330 (a)   09/13/2010 (b)   30,027,270  
48,600,000   American Express Bank, FSB   1.092 (a)   12/10/2010 (b)   48,970,931  
17,500,000   KeyCorp   0.949 (a)   12/15/2010 (b)   17,528,748  
10,000,000   SunTrust Bank   0.945 (a)   12/16/2010 (b)   10,015,518  
64,400,000   General Electric Capital Corp.   0.379 (a)   03/11/2011 (b)   64,507,286  
20,000,000   Goldman Sachs Group Inc.   0.379 (a)   03/15/2011 (b)   20,060,471  
22,000,000   Goldman Sachs Group Inc.   0.525 (a)   11/09/2011 (b)   22,078,712  
58,000,000   General Electric Capital Corp.   1.239 (a)   12/09/2011 (b)   59,005,380  
                   
 
 
    TOTAL FDIC GUARANTEED CORPORATE FLOATING RATE NOTES  
    (at amortized cost -- $336,280,061)               336,280,061  
                   
 
 
    TOTAL INVESTMENTS – 98.6%                  
    (at amortized cost -- $1,892,826,032****)               1,892,826,032  
                   
 
 
    OTHER ASSETS LESS LIABILITIES – 1.4%     27,329,883  
                   
 
 
    NET ASSETS - 100.0%               $1,920,155,915  
                   
 

*     

Obligations of U.S. Government sponsored enterprises are not issued or guaranteed by the United States Treasury.
    
**     

This debt is guaranteed under the Federal Deposit Insurance Corporation's ("FDIC") Temporary Liquidity Guarantee Program ("TLGP") and is backed by the full faith and credit of the United States. Details of the TLGP can be found on the FDIC's website, www.fdic.gov/tlgp.
    
*** The percentage shown for each investment category is the total value of that category as a percentage of the total net assets of the Fund.
      
**** Also represents cost for federal income tax purposes.
    
(a) Floating or variable rate security. The interest rate shown is the rate in effect as of November 30, 2009.
    
(b) The maturity date shown is either the readjustment date of the interest rate or the stated maturity date on the security.

Item 2. Controls and Procedures.

(a)     

The registrant’s principal executive and principal financial officers have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “1940 Act”)) are effective, based on an evaluation of those controls and procedures made as of a date within 90 days of the filing date of this report as required by Rule 30a-3(b) under the 1940 Act and Rule 13a-15(b) under the Securities Exchange Act of 1934.
    
(b)     

There have been no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) 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.

Exhibit 99. CERT          Certifications pursuant to Section 302 of the Sarbanes Oxley Act of 2002. Filed herewith.


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) Hilliard-Lyons Government Fund, Inc.

By (Signature and Title) /s/ Joseph C. Curry, Jr.
 
  Joseph C. Curry, Jr., President
  (principal executive officer)

Date: January 15, 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/ Dianna P. Wengler
 
 
Dianna P. Wengler, Senior Vice President and Treasurer
 
(principal financial officer)
 
Date: January 15, 2010
 
By (Signature and Title)
/s/ Joseph C. Curry, Jr.
 
 
Joseph C. Curry, Jr., President
 
(principal executive officer)
 
Date: January 15, 2010