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, 2012

Date of reporting period: March 31, 2012

ITEM 1. SCHEDULE OF INVESTMENTS.

Kavilco Incorporated

Schedule of Investments

For period ended March 31, 2012 (unaudited)

	Principal Amount or Shares	Fair Value
INVESTMENTS IN SECURITIES - 91.7%
U.S. Corporate Obligations - 81.7%
Chemical Industry - 6.3%
The Dow Chemical Company, 5.900%, due February 15, 2015	610,000	$	678,759
E.I. DuPont de Nemour, 5.250%, due December 15, 2016	1,519,000		1,774,754
Total Chemical Industry			2,453,513
Communications - 13.4%
Comcast Corp., 10.625%, due July 15, 2012	1,338,000		1,395,280
AT&T, 5.100%, due September 15, 2014	1,250,000		1,376,800
CBS Corporation, 4.625%, due May 15, 2018	2,000,000		2,079,440
Deutsche Telekom Int. Fin., 6.000%, due July 8, 2019	250,000		287,000
Total Communications			5,138,520
Consumer, Cyclical - 10.7%
Dayton Hudson, 8.600%, due January 15, 2012	100,000		100,243
Home Depot Inc., 5.250%, due December 16, 2013	1,000,000		1,085,910
Safeway Inc., 5.625%, due August 15, 2014	1,229,000		1,330,036
Target Corp., 5.875%, due July 15, 2016	1,000,000		1,184,280
Avon Products Inc., 6.500%, due March 1, 2019	500,000		566,365
Total Consumer, Cyclical			4,266,834
Consumer, Non-cyclical - 3.3%
Coca Cola Enterprises, 8.500%, due February 1, 2012	700,000		704,109
McDonald's Corp., 5.300%, due March 15, 2017	500,000		594,425
Kraft Foods Inc., 6.500%, due August 11, 2017	250,000		297,392
Yum! Brands Inc., 5.300%, due September 15, 2019	355,000		397,188
Total Consumer, Non-cyclical			1,993,114
Diversified Company Industry - 4.9%
TYCO Intl Group, 6.000%, due November 15, 2013	1,245,000		1,348,746
Fortune Brands Inc., 6.375%, due June 15, 2014	500,000		546,720
Total Diversified Company Industry			1,895,466
Energy - 14.9%
Kinder Morgan Energy Partners, 5.625%, due February 15, 2015	500,000		549,070
PPL Energy Supply LLC, 5.700%, due October 15, 2015	80,000		86,803
Plains All American Pipeline, 6.125%, due January 15, 2017	1,345,000		1,520,576
XTO Energy Inc., 6.250%, due August 1, 2017	1,000,000		1,227,400
Kinder Morgan Energy Partners, 5.950%, due February 15, 2018	460,000		525,522
Transocean Inc., 7.375%, due April 15, 2018	1,350,000		1,452,856
Hess Corporation, 8.125%, due February 15, 2019	199,000		255,448
Total Energy			5,617,675
Financial - 1.0%
Boeing Capital Corp., 6.500%, due February 15, 2012	500,000		503,765
American Express Credit Co., 5.300%, due December 2, 2015	117,000		127,590
General Electric Capital Corp., 5.625%, due September 15, 2017	215,000		237,958
Total Financial			869,313
Paper & Forest Products Industry - 1.7%
International Paper, 9.375%, due May 15, 2019	500,000		660,630
Technology - 9.1%
Xerox Corporation, 5.500%, due May 15, 2012	2,000,000		2,010,200
Cisco Systems Inc., 5.500%, due February 22, 2016	960,000		1,114,090
Oracle Corp., 5.000%, due July 18, 2019	250,000		291,655
Adobe Systems Inc., 4.750%, due February 1, 2020	100,000		108,715
Total Technology			3,524,660
Transportation - 7.1%
CSX Corp., 5.500%, due August 1, 2013	964,000		1,022,553
Union Pacific Corp., 4.875%, due January 15, 2015	1,000,000		1,097,130
FedEx Corp., 8.000%, due January 15, 2019	500,000		646,345
Total Transportation			2,766,028
Utilities - 9.3%
Dominion Resources Inc., 5.000%, due March 15, 2013	1,000,000		1,039,690
Potomac Electric Power, 4.650%, due April 15, 2014	600,000		642,300
American Electric Power, 5.250%, due June 1, 2015	50,000		54,537
Southern Power Company, 4.875%, due July 15, 2015	1,250,000		1,377,938
Southern Electric Power, 5.550%, due January 15, 2017	174,000		195,494
Metropolitan Edison, 7.700%, due January 15, 2019	250,000		311,708
Total Utilities			3,621,667
Total U.S. Corporate Obligations (cost $30,181,844)			31,757,226
U.S. Common Stock - 4.4 %
Computer Software & Services - 0.3%
Microsoft Corp.	3,640		117,408
Drug Industry - 0.2%
Bristol-Myers Squibb	1,500		50,625
Merck & Co. Inc.	1,500		57,600
			108,225
Electric Utility - 1.0%
Avista Corp	2000		51,160
Consolidated Edison Inc.	1500		87,630
Duke Energy Corp.	700		14,707
NSTAR	600		28,176
Entergy Corporation New	800		53,760
Progress Energy Inc.	600		31,866
Scana Corp.	700		31,927
Southern Company	1,800		80,874
Total Electric Utility			381,102
Exchange Traded Funds - 0.5%
iShares Investment Grade Corp. Bonds	600		74,003
iShares Silver Trust	1525		47,855
SPDR Gold Trust	350		56,742
Total Exchange Traded Funds			178,600
Food Processing - 0.2%
Kraft Foods Inc.	1,500		57,015
Mining - 0.1%
Silver Wheaton Corp.	700		23,240
Natural Gas (Diversified) - 0.1%
ONEOK Inc.	600		48,996
Real Estate Investment Trust - 1.2%
AvalonBay Communities	400		56,540
Healthcare Realty Trust Inc.	2300		50,600
Hospitality Properties Trust	2000		52,940
LTC Properties Inc.	3300		105,600
Mack Cali Rlty Corp	1800		51,876
Omega Healthcare Investors	2500		53,150
Washington Real Estate Invt	2000		59,400
Ventas Inc.	600		34,260
Total Real Estate Investment Trust			464,366
Telecommunications Services - 0.8%
AT&T	3,300		103,059
CenturyTel Inc.	2900		112085
Frontier Communications Corp.	192		801
Verizon Communications Inc.	2,000		76,460
Total Telecommunication Services			292,405
Total U. S. Common Stock (cost $1,387,980)			1,648,117
France Common Stock
Drug Industry - 0.1%
Sanofis-Aventis-ADR	600		23,250
Netherlands Common Stock
Petroleum Industry - 0.1%
Royal Dutch Shell PLC	400		28,052
United Kingdom Common Stock
Food Processing - 0.1%
Unilever PLC	800		26,440
Total Common Stock (cost $1,439,340)			1,725,859
Publicly Traded Partnerships - 1.8%
Oil/Gas Distribution - 1.8%
Amerigas Partners-LP	2500		101,300
Buckeye Partners LP	2300		140,714
Energy Transfer Partners LP	1600		75,056
Enterprise Products Partners	1600		80,752
Kinder Morgan Energy Partners	500		41,375
Nustar Energy LP Unit Com	900		53,172
PAA NAT Gas Storage LP Com Unit Ltd	3000		57,000
Plains All American Pipeline	800		62,760
Suburban Propane Partners L.P.	2000		86,000
Total Oil/Gas Distribution			698,129
Total Publicly Traded Partnerships (cost $643,394)			698,129
Total Investments in Securities (identified cost $30,292,072)		$	35,637,908

FINANCIAL ACCOUNTING STANDARDS NO. 157

The Company adopted the provisions of the Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, Fair Value Measurements (“FAS 157”), effective January 1, 2008. In accordance with FAS 157, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. FAS 157 also establishes a framework for measuring fair value, and a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability. Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data from sources independent of the Company. Unobservable inputs reflect the Company’s own assumption about the assumptions that market participants would use in pricing the asset or liability developed on the best information available in the circumstance.

The fair value hierarchy is categorized into three levels based on the inputs as follows

Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access.

Level 2 - Observable inputs other than quoted prices included in level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment spreads, credit risk, yield curves, default rates and similar data.

Level 3 - Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing the Company's own assumptions about the assumption a market participant would use in valuing the asset or liability, and would be based on the best information available.

The following table presents information about the Company’s assets measured at fair value as of March 31, 2012:

	Level 1		Level 2		Level 3		Balance
ASSETS
Investments
U.S. corporate obligations	$	-	$	31,757,226	$	-	$	31,757,226
Common stock		1,725,859		-		-		1,725,859
Publicly traded partnerships		698,129		-		-		698,129
Real estate		-		-		3,794,617		3,794,617
	$	2,423,988	$	31,757,226	$	3,794,617	$	37,975,831

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: May 30, 2012

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: May 30, 2012

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: May 30, 2012

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: May 30, 2012