N-Q 1 a08-13263_5nq.htm N-Q

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

 

FORM N-Q

 

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES

 

Investment Company Act file number

811-00802

 

 

Mairs and Power Growth Fund, Inc.

(Exact name of registrant as specified in charter)

 

332 Minnesota Street, Suite W1520, St. Paul, MN 

 

55101

(Address of principal executive offices)

 

(Zip Code)

 

William B. Frels, President, 332 Minnesota Street, Suite W1520, St. Paul, MN  55101

(Name and address of agent for service)

 

Registrant's telephone number, including area code:

651-222-8478

 

 

Date of fiscal year end:

12/31/08

 

 

 

 

Date of reporting period:

03/31/08

 

 


 

Item 1.            Schedule of Investments.

 


SCHEDULE OF INVESTMENTS (unaudited)  March 31, 2008

Shares   Security Description   Market Value  
    COMMON STOCKS 97.6%  
    BASIC INDUSTRIES 11.7%  
  2,219,000     Bemis Co., Inc.   $ 56,429,170    
  2,010,000     Ecolab Inc.     87,294,300    
  3,200,000     H. B. Fuller Co. (b)     65,312,000    
  3,510,000     The Valspar Corp.     69,638,400    
      278,673,870    
    CAPITAL GOODS 12.3%  
  2,250,000     Donaldson Co., Inc.     90,630,000    
  300,000     Fastenal Co.     13,779,000    
  2,095,000     Graco Inc.     75,964,700    
  1,150,000     MTS Systems Corp. (b)     37,099,000    
  2,320,000     Pentair, Inc.     74,008,000    
      291,480,700    
    CONSUMER CYCLICAL 8.4%  
  510,000     Briggs & Stratton Corp.     9,129,000    
  440,000     G&K Services, Inc. – Cl A     15,668,400    
  2,020,000     Target Corp.     102,373,600    
  1,750,000     The Toro Co.     72,432,500    
      199,603,500    
    CONSUMER STAPLE 6.8%  
  1,380,000     General Mills, Inc.     82,634,400    
  1,570,000     Hormel Foods Corp.     65,406,200    
  480,000     SUPERVALU Inc.     14,390,400    
      162,431,000    
    DIVERSIFIED 8.4%  
  2,380,000     General Electric Co.     88,083,800    
  1,410,000     3M Co.     111,601,500    
      199,685,300    
    FINANCIAL 15.2%  
  1,240,000     Associated Banc-Corp.     33,021,200    
  200,000     Marshall & Isley Corp.     4,640,000    
  736,100     MoneyGram International Inc.     1,369,146    
  960,000     Principal Financial Group, Inc.     53,491,200    
  3,070,000     TCF Financial Corp.     55,014,400    

 


5


SCHEDULE OF INVESTMENTS (unaudited) (continued)  March 31, 2008

Shares   Security Description   Market Value  
    COMMON STOCKS (continued)  
    FINANCIAL (continued)  
  600,000     The Travelers Cos., Inc.   $ 28,710,000    
  2,720,000     U.S. Bancorp     88,019,200    
  3,290,000     Wells Fargo & Co.     95,739,000    
      360,004,146    
    HEALTH CARE 20.7%  
  10,000     Amgen, Inc. (a)     417,800    
  1,224,000     Baxter International Inc.     70,771,680    
  1,360,000     Johnson & Johnson     88,223,200    
  2,230,000     Medtronic, Inc.     107,865,100    
  820,000     Patterson Cos., Inc. (a)     29,766,000    
  2,510,000     Pfizer Inc.     52,534,300    
  1,490,000     St. Jude Medical, Inc. (a)     64,353,100    
  720,000     SurModics, Inc. (a)     30,153,600    
  280,000     Techne Corp. (a)     18,860,800    
  370,000     Zimmer Holdings, Inc. (a)     28,808,200    
      491,753,780    
    TECHNOLOGY 13.2%  
  1,080,000     ADC Telecommunications, Inc. (a)     13,046,400    
  1,500,000     Corning Inc.     36,060,000    
  820,000     Daktronics, Inc.     14,686,200    
  2,410,000     Emerson Electric Co.     124,018,600    
  1,439,375     Honeywell International Inc.     81,209,537    
  1,380,000     Intel Corp.     29,228,400    
  260,000     Metavante Technologies     5,197,400    
  570,000     Stratasys, Inc. (a)     10,146,000    
      313,592,537    
    TRANSPORTATION 0.9%  
  290,000     United Parcel Service, Inc. – Cl B     21,175,800    
        TOTAL COMMON STOCKS
(cost $1,685,460,570)		   $ 2,318,400,633    

 


6


SCHEDULE OF INVESTMENTS (unaudited) (continued)  March 31, 2008

Shares   Security Description   Market Value  
    SHORT-TERM INVESTMENTS 2.3%  
  41,311,519     First American Prime Obligations Fund, Class Z   $ 41,311,519    
  12,362,848     Merrill Lynch Premier Institutional Money Market Fund     12,362,848    
    TOTAL SHORT-TERM INVESTMENTS
(cost $53,674,367)		   $ 53,674,367    
    TOTAL INVESTMENTS 99.9%
(cost $1,739,134,937)		   $ 2,372,075,000    
    OTHER ASSETS AND LIABILITIES (NET) 0.1%     3,090,450    
    TOTAL NET ASSETS 100.0%   $ 2,375,165,450    

 

(a)  Non-income producing.

(b)  Affiliated company.

See accompanying Notes to Schedule of Investments.


7


NOTES TO SCHEDULE OF INVESTMENTS (unaudited)  March 31, 2008

Security Valuations

Security valuations for fund investments are furnished by independent pricing services that have been approved by the Fund's Board of Directors (the Board). Investments in equity securities listed on an original exchange are stated at the last quoted sales price if readily available for such securities on each business day. Other equity securities traded in the over-the-counter market and listed equity securities for which no sale was reported on that date are stated at the last quoted bid price. Debt obligations with 60 days or less remaining until maturity may be valued at their amortized cost, which approximates market.

Securities for which prices are not available from an independent pricing service, but where an active market exists, are valued using market quotations obtained from one or more dealers that make markets in the securities or from a widely used quotation system. When market quotations are not readily available, or where the last quoted sale price is not considered representative of the value of the security if it were to be sold on that day, the security will be valued at fair value as determined in good faith by the Fair Valuation Committee appointed by the Board, pursuant to procedures approved by the Board. Factors that may be considered in determining the fair value of a security are fundamental analytical data relating to the security; the nature and duration of any restrictions on the disposition of the security; and the forces influencing the market in which the security is purchased or sold. As of March 31, 2008, no securities in the Fund were valued using this method.

Various inputs are used in determining the value of the Fund's investments. 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 the Fund's own assumptions in determining the fair value of investments).

While a uniform presentation is the objective of this disclosure, industry implementation is in its initial stages and it is likely that there will be a range of practices used. Over the course of the next period there may be changes to the overall presentation and classification of securities as the industry standard becomes more uniform. Care should be utilized in interpreting this information and/or using it for comparisons with other mutual funds. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The following is a summary of the inputs used to value the Fund's net assets as of March 31, 2008.

Valuation Inputs   Investments in Securities  
Level 1 – Quoted Prices   $ 2,372,075,000    
Level 2 – Other Significant Observable Inputs     —    
Level 3 – Significant Unobservable Inputs     —    
Total   $ 2,372,075,000    

 

Security Transactions

Security transactions are recorded on the date on which securities are purchased or sold.


8


NOTES TO SCHEDULE OF INVESTMENTS (unaudited)  March 31, 2008

Income Taxes

At March 31, 2008, the cost of investments for federal income tax purposes was equal to the cost for financial reporting purposes. Net unrealized appreciation aggregated $632,940,063 of which $699,855,852 represented appreciated investment securities and $66,915,789 represented depreciated investment securities.

Transactions With Affiliated Companies

The Fund owns 5% or more of the voting securities of the following companies as of March 31, 2008. As a result, these companies are deemed to be affiliates of the Fund as defined by the Investment Company Act of 1940. Transactions during the period in these securities of affiliated companies were as follows:

    Share Activity      
Security Name   Balance
12/31/07		   Purchases   Sales   Balance
03/31/08		   Value at
03/31/08		  
H.B. Fuller Co.     3,200,000       —       —       3,200,000     $ 65,312,000    
MTS Systems Corp.     1,136,700       13,300       —       1,150,000       37,099,000    
    $ 102,411,000    

 


9



 

Item 2.                    Controls and Procedures.

 

a)                            The registrant’s principal executive officer and principal financial officer have evaluated the registrant’s disclosure controls and procedures as of a date within 90 days of the filing date of this report and have concluded that the registrant’s disclosure controls and procedures were effective, as of that date, in ensuring that information required to be disclosed by the registrant in this Form N-Q was recorded, processed, summarized and reported within the time period specified by the SEC’s rules and forms.

 

b)                           There was no change in the registrant’s internal control over financial reporting that occurred during the registrant’s last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

 

Item 3.                        Exhibits

 

(a)          Certifications required by Rule 30a-2(a) under the Investment Company Act of 1940.

 

Attached as exhibit 99.CERT to this form.

 


 

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)

          Mairs and Power Growth Fund, Inc.

 

 

By (Signature and Title)

 

*

/s/William B. Frels

 

 

William B. Frels, President

 

 

Date

 

05/30/08

 

 

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/William B. Frels

 

 

William B. Frels, President

 

(principal executive officer)

 

 

Date

 

05/30/08

 

 

By (Signature and Title)

 

*

/s/Lisa J. Hartzell

 

 

Lisa J. Hartzell, Treasurer

 

(principal financial officer)

 

 

Date

 

05/30/08

 

 

*  Print the name and title of each signing officer under his or her signature.