Certifications

0000859765-13-000007.txt : 20130507 0000859765-13-000007.hdr.sgml : 20130507 20130507133042 ACCESSION NUMBER: 0000859765-13-000007 CONFORMED SUBMISSION TYPE: N-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20130331 FILED AS OF DATE: 20130507 DATE AS OF CHANGE: 20130507 EFFECTIVENESS DATE: 20130507 FILER: COMPANY DATA: COMPANY CONFORMED NAME: KAVILCO INC/WA/ CENTRAL INDEX KEY: 0000859765 IRS NUMBER: 920045958 STATE OF INCORPORATION: AK FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-Q SEC ACT: 1940 Act SEC FILE NUMBER: 811-06027 FILM NUMBER: 13819087 BUSINESS ADDRESS: STREET 1: ONE UNION SQUARE STREET 2: SUITE 3010 CITY: SEATTLE STATE: WA ZIP: 98101 BUSINESS PHONE: 2066246166 N-Q 1 NQ-firstquarter013.htm NQ FIRST QUARTER SCHEDULE OF PORTFOLIO HOLDINGS

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, 2013

Date of reporting period: March 31, 2013


			COST	%	Principal Amount or Shares	Market Value
INVESTMENTS IN SECURITIES
U.S. Corporate Bonds


Chemicals - Specialty
		The Dow Chemical Company, 5.900%, due February 15, 2015			610,000	666,462
		E.I. Du Pont de Nemour, 5.250%, due December 15, 2016			1,519,000	1,754,734
	Total Chemical Industry			6.5%		2,421,196

Communications
		AT&T, 5.100%, due September 15, 2014			1,250,000	1,329,487
		CBS Corporation, 4.625%, due May 15, 2018			2,000,000	2,240,840
		Deutsche Telekom Int. Fin., 6.000%, due July 8, 2019			250,000	303,677
	Total Communications			10.4%		3,874,004

Consumer, Cyclical
		Home Depot Inc., 5.250%, due December 16, 2013			1,000,000	1,033,850
		Safeway Inc., 5.625%, due August 15, 2014			1,229,000	1,302,003
		Target Corp., 5.875%, due July 15, 2016			1,000,000	1,167,820
		Avon Products Inc., 6.500%, due March 1, 2019			500,000	568,660
	Total Consumer, Cyclical			11.0%		4,072,333

Consumer, Non-cyclical
		McDonald’s Corp., 5.300%, due March 15, 2017			500,000	581,270
		Kraft Foods Inc., 6.500%, due August 11, 2017			250,000	302,417
		Yum! Brands Inc., 5.300%, due September 15, 2019			355,000	415,311
	Total Consumer, Non-cyclical			3.5%		1,298,998

Diversified Company Industry
		Fortune Brands Inc., 6.375%, due June 15, 2014			500,000	531,980
	Total Diversified Company Industry			1.4%		531,980

Energy
		Kinder Morgan Energy Partners, 5.625%, due February 15, 2015			500,000	597,975
		PPL Energy Supply LLC, 5.700%, due October 15, 2015			80,000	87,287
		Plains All American Pipeline, 6.125%, due January 15, 2017			1,345,000	1,580,536
		XTO Energy Inc., 6.250%, August 1, 2017			1,000,000	1,223,760
		Kinder Morgan Energy Partners, 5.950%, due February 15, 2018			460,000	499,730
		Transocean Inc., 7.375%, due April 15, 2018			1,350,000	1,586,668
		Hess Corporation, 8.125%, due February 15, 2019			199,000	258,790
	Total Energy			15.7%		5,834,746

Financial
		American Express Credit Co., 5.300%, due December 2, 2015			117,000	130,598
		General Electric Capital Corp., 5.625%, due September 15, 2017			215,000	251,976
	Total Financial			1.0%		382,574

Paper & Forest Products Industry
		International Paper, 9.375%, due May 15, 2019			500,000	688,865
	Total Paper & Forest Products Industry			1.9%		688,865

Technology
		Cisco Systems Inc., 5.500%, due February 22, 2016			960,000	1,091,203
		Oracle Corp., 5.000%, due July 08, 2019			250,000	298,025
		Adobe Systems Inc., 4.750%, due February 1, 2020			100,000	112,613
	Total Technology			4.0%		1,501,841

Transportation
		CSX Corp., 5.500%, due August 1, 2013			964,000	978,875
		Union Pacific Corp., 4.875%, due January 15, 2015			1,000,000	1,071,770
		FedEx Corp., 8.000%, due January 15, 2019			500,000	658,740
	Total Transportation			7.3%		2,709,385

Utilities
		Dominion Resources Inc., 5.000%, due March 15, 2013
		Potomac Electric Power, 4.650%, due April 15, 2014			600,000	623,406
		Southern Power Company, 4.875%, due July 15, 2015			1,250,000	1,363,700
		Southern Electric Power, 5.550%, due January 15, 2017			174,000	197,375
		Metropolitan Edison, 7.700%, due January 15, 2019			250,000	321,865
	Total Utilities			6.7%		2,506,346


	TOTAL - US CORPORATE BONDS		$23,162,509	69.5%		$25,822,268


U.S. Common Stock

Chemicals - Speciality
		Du Pont (E.I.) De Nemours and Company			4,312	211,460
	Total Chemicals - Specialty			0.6%		211,460

Computer and Peripherals
		Hewlett-Packard			11,680	260,464
	Total Computer and Peripherals			0.7%		260,464

Computers, Software & Services
		Microsoft Corp.			3,640	104,086
	Total Computer Software & Services			0.3%		104,086

Drug Industry
		Bristol-Myers Squibb			1,500	61,170
		Johnson & Johnson			2,800	230,748
		Lilly Eli & Co.			2,000	113,860
		Merck & Co. Inc.			1,500	67,980
	Total Drug Industry			1.3%		473,758

Electrical Equipment
		General Electric			9,425	217,529
	Total Electrical Equipment			0.6%		217,529

Electric Utility
		Atmos Energy Corp.			1,500	63,000
		Avista Corp.			2,000	54,100
		Consolidated Edison Inc.			1,500	91,845
		Duke Energy Corp.			2,255	161,909
		Entergy Corporation New			1,570	104,436
		Exelon Corp.			1,400	48,608
		Firstenergy Corp.			1,255	54,003
		Northeast Utilities			787	34,204
		Pepco Holdings Inc.			2,600	56,030
		PPL Corporation			1,800	56,322
		Scana Corp.			700	36,274
		Southern Company			4,150	196,004
	Total Electric Utility			2.6%		956,735

Exchange Traded Funds
		iShares Investment Grade Corp. Bonds			640	77,101
		iShares S&P Preferred Stock Index Fund			2,516	101,344
		iShares Silver Trust			1,525	39,635
		SPDR Barclays Capital High Yield			2,600	106,184
		SPDR Gold Trust			350	52,601
	Total Exchange Traded Funds			1.0%		376,865

Food Processing
		Kraft Foods Group			500	25,925
		Mondelez International Inc.			1,500	45,412
	Total Food Processing			0.2%		71,337

Metals & Mining
		Silver Wheaton Corp.			700	20,321
	Total Mining			0.1%		20,321

Mutual Funds
		John Hancock Preferred Income Fund			1,084	25,550
	Total Mutual Funds			0.1%		25,550

Natural Gas (Diversified)
		ONEOK Inc.			1,200	57,588
	Total Natural Gas (Diversified)			0.2%		57,588

Office Equipment
		Pitney Bowes Inc.			3,000	43,440
	Total Office Equipment			0.1%		43,440

Oil Field Services and Equipment
		Diamond Offshore Drilling			1,515	104,293
	Total Oil Field Services and Equipment			0.3%		104,293

Petroleum Industry
		Hollyfrontier Corp			1,800	86,850
	Total Petroleum Industry			0.2%		86,850

Real Estate Investment Trust
		AvalonBay Communities			400	52,888
		Digital Realty Trust Inc.			1,500	101,340
		Healthcare Realty Trust Inc.			2,300	65,757
		Hospitality Properties Trust			6,100	166,896
		Liberty Property Trust			2,500	102,100
		LTC Properties Inc.			4,830	204,889
		Mack Cali Rlty Corp			5,600	160,048
		Omega Healthcare Investors			2,831	90,592
		Sabra Healthcare Reit Inc.			1,960	56,409
		Senior Housing Properties Trust			6,300	170,856
		Stag Industrial Inc.			2,400	51,864
		Sun Communities			1,000	47,680
		Ventas Inc.			600	44,790
		Washington Real Estate Investment Trust			6,600	186,384
	Total Real Estate Investment Trust			4.0%		1,502,493

Restaurant Industry
		McDonalds Corp			2,182	219,575
	Total Restaurant Industry			0.6%		219,575

Telecommunications Services
		AT&T			9,200	348,772
		CenturyTel Inc.			6,900	248,538
		Consolidated Communications Holdings, Inc.			5,000	87,400
		Frontier Communications Corp.			192	789
		Verizon Communications Inc.			5,640	278,052
	Total Telecommunications Services			2.6%		963,551

Foreign Stocks

CANADIAN - Petroleum Industry
		Penn West Petroleum			3,400	33,762
CANADIAN - Utilities
		Atlantic Power Corp			2,700	13,311
	Total Canadian Common Stock			0.1%		47,073

FRANCE - Drug Industry
		Sanofi-Aventis-ADR			600	30,792
	Total France Common Stock			0.1%		30,792

NETHERLANDS - Petroleum Industry
		Royal Dutch Shell PLC			400	25,656
		Seadrill Ltd.			1,200	42,756
	Total Netherlands Common Stock			0.2%		68,412

UNITED KINGDOM - Food Processing Insustry
		Unilever PLC			800	33,656
	Total UK Common Stock			0.1%		33,656

Publicly Traded Partnership Stocks

Publicly Traded Partnerships Stocks - Oil/Gas Distribution
		Amerigas Partners-LP			5,000	221,700
		Boardwalk Pipeline Partners			6,968	202,908
		Breitburn Energy			4,700	92,637
		Buckeye Partners LP			5,052	298,220
		CVR Partners LP			4,760	111,146
		El Paso Pipeline Partners LP			4,050	173,542
		Enbridge Energy Partners LP.			3,700	109,705
		Energy Transfer Partners LP			5,100	256,785
		Enterprise Products Partners			1,600	95,232
		Kinder Morgan Energy Partners			2,400	211,680
		Linn Energy LLC			5,890	222,995
		Magellan Midstream Partners			2,200	112,002
		Market West Partners LP			2,000	116,340
		Nustar Energy LP Unit Com			4,100	214,266
		PAA NAT Gas Storage LP Com Unit Ltd			4,200	88,452
		Plains All American Pipeline			1,600	88,432
		PVR Partners LP			3,000	70,590
		Suburban Propane Partners L.P.			3,200	147,040
		TC Pipelines LP			1,700	80,954
		Williams Partners LP			1,900	97,717
	Total Publicly Traded Partnerships Stocks- Oil/Gas Distribution					$3,012,343
		Cost - Publicly Traded Partnerships	2,796,011


	TOTALS - ALL STOCKS			23.9%		$8,888,171
		Total Cost for All Stocks	$7,917,619

	TOTAL - CASH AND EQUIVALENTS (Money Market)		$2,430,328	6.5%		$2,430,328

TOTAL PORTFOLIO				100.0%		$37,140,767
		Total Portfolio Cost	$33,510,456

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, 2013:

Investments in Securities	Level 1	Level 2	Level 3	Balance

US Corporate Bonds		25,822,268		25,822,268
Common Stock (not incl PTP's below)	5,875,828			5,875,828
Publicly Traded Partnerships Stocks	3,012,343			3,012,343
Cash and Equivalents (Money Market)	2,430,328			2,430,328
TOTALS				$37,140,767

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 7, 2013

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 7, 2013

EX-99.CERT 2 nqcerts0313.htm NQ CERTIFICATIONS Certifications

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 7, 2013

Exhibit 3 (a) (2)

CERTIFICATIONS

I, Scott Burns, certify that:

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

(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 7, 2013