N-Q

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: 811-6027

KAVILCO INCORPORATED

(Exact name of registrant as specified in charter)

600 University Street, Suite 3010
Seattle, Washington 98101-1129

(Address of principal executive offices) (Zip code)

Registrant’s telephone number, including area code: (206) 624-6166

Date of fiscal year end: December 31, 2008

Date of reporting period: September 30, 2008

ITEM 1. SCHEDULE OF INVESTMENTS.

Kavilco Incorporated

Schedule of Investments

For period ended September 30, 2008 (unaudited)

	Principal amount/shares	Market Value
INVESTMENTS IN SECURITIES - 85.9%
Corporate obligations - 74.8%
Communications - 14.2%
Walt Disney Co., 5.800%, due October 28, 2008	290,000	$	290,242
Verizon NE Inc., 6.500%, due September 15, 2011	1,000,000		991,370
Comcast Corp., 10.625%, due July 15, 2012	1,338,000		1,455,106
AT&T, 5.100%, due September 15, 2014	1,250,000		1,197,020
CBS Corporation, 4.625%, due May 15, 2018	2,000,000		1,521,596
Chemical Industry - 3.7%
E.I. Du Pont de Nemour, 5.250%, due December 15, 2016	1,519,000		1,426,248
Consumer, cyclical - 11.1%
Wal-Mart Stores, 6.875%, due August 10, 2009	1,000,000		1,027,065
Dayton Hudson, 8.600%, due January 15, 2012	100,000		109,109
Home Depot Inc., 5.250%, due December 16, 2013	1,000,000		920,874
Safeway Inc., 5.625%, due August 15, 2014	1,229,000		1,199,513
Target Corp., 5.875%, due July 15, 2016	1,000,000		983,281
Consumer, Non-cyclical - 7.5%
Clorox Company, 6.125%, due February 1, 2011	1,000,000		1,019,205
Yum! Brands Inc., 8.875%, due April 15, 2011	1,000,000		1,077,473
Coca Cola Enterprises, 8.500%, due February 1, 2012	700,000		774,940
Energy - 10.7%
Smith International Inc., 6.750%, due February 15, 2011	500,000		524,408
Plains All American Pipeline, 6.125%, due January 15, 2017	1,345,000		1,222,191
XTO Energy Inc., 6.250%, August 1, 2017	1,000,000		943,575
Transocean Sedco Forex Inc., 7.375%, due April 15, 2018	1,350,000		1,401,619
Financial - 5.2%
Merrill Lynch, 6.375%, due October 15, 2008	1,000,000		998,786
Bear Stearns, 7.625%, due December 7, 2009	1,000,000		1,009,864
Industrial - 8.0%
CSX Corp., 5.500%, due August 1, 2013	964,000		913,810
TYCO Intl Group, 6.000%, due November 15, 2013	1,245,000		1,219,963
Union Pacific Corp., 4.875%, due January 15, 2015	1,000,000		929,334
Technology - 5.0%
Xerox Corporation, 5.500%, due May 15, 2012	2,000,000		1,906,880
Utilities - 9.4%
American Electric Power, 5.375%, due March 15, 2010	1,475,000		1,483,953
Dominion Resources, 5.000%, due March 15, 2013	1,000,000		964,210
Southern Power Company, 4.875%, due July 15, 2015	1,250,000		1,135,077
Total Corporate Obligations (cost $29,672,699)			28,646,712
Common Stock - 0.52%
Computer Software & Services - 0.25%
Microsoft Corp.	3,640		97,152
Exchange Traded Funds - 0.27%
UltraShort Basic Materials ProShares	580		30,885
UltraShort FTSE Xinhua China 25 ProShares	250		23,500
UltraShort MSCI Emerging Markets ProShares	200		19,410
UltraShort Semiconductors ProShares	300		28,164
Total common stock (cost $130,184)			199,111
Short-term investments - 10.6%
Federated Prime Obligation Fund #10
Total short-term investments (cost $4,058,515)	4,058,515		4,058,515
Total investments in securities (identified cost $33,861,398)		$	32,904,338

ITEM 2. CONTROLS AND PROCEDURES.

(a) The registrant’s President/Chief Executive Officer and Chief Financial Officer 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) are effective at the reasonable assurance level based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this document.

(b) There were no changes in the registrant’s internal controls over financial reporting that occurred during the third fiscal quarter of the period that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

ITEM 3. EXHIBITS.

The following exhibits are attached to this Form N-Q:

EXHIBIT NO.	DESCRIPTION OF EXHIBIT
3 (a) (1)	Certification of President/Chief Executive Officer
3 (a) (2)	Certification of Chief Financial Officer

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): Kavilco Incorporated
By:	/s/ Louis A. Thompson
	Louis A. Thompson
	President/Chief Executive Officer

Date: November 20, 2008

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:	/s/ Scott Burns
	Scott Burns
	Chief Financial Officer
Date: November 20, 2008

EX-99.CERT

Exhibit 3 (a) (1)

CERTIFICATIONS

I, Louis A. Thompson, certify that:

1. I have reviewed this report on Form N-Q of Kavilco Incorporated;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed to the registrant’s auditors and the registrant's board of directors acting as the audit committee (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

/s/ Louis A. Thompson

Louis A. Thompson

President/Chief Executive Officer

Date: November 20, 2008

Exhibit 3 (a) (2)

CERTIFICATIONS

I, Scott Burns, certify that:

1. I have reviewed this report on Form N-Q of Kavilco Incorporated;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed to the registrant’s auditors and the registrant's board of directors acting as the audit committee (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

/s/ Scott Burns

Scott Burns

Chief Financial Officer

Date: November 20, 2008