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)24-6166

Date of reporting period: March 31, 2014

			Principal Amount or Shares	Market Value
INVESTMENTS IN SECURITIES 89.7%
U.S. Corporate Bonds 61.0%
Chemicals Industry 4.7%
		E.I. Du Pont de Nemour, 5.250%, due December 15, 2016	1,519,000	1,691,391
	Total Chemical Industry			1,691,391
Communications 10.5%
		AT&T, 5.100%, due September 15, 2014	1,250,000	1,276,187
		CBS Corporation, 4.625%, due May 15, 2018	2,000,000	2,174,900
		Deutsche Telekom Int. Fin., 6.000%, due July 8, 2019	250,000	293,145
	Total Communications			3,744,232
Consumer, Cyclical 8.2%
		Safeway Inc., 5.625%, due August 15, 2014	1,229,000	1,247,066
		Target Corp., 5.875%, due July 15, 2016	1,000,000	1,112,650
		Avon Products Inc., 6.500%, due March 1, 2019	500,000	558,010
	Total Consumer, Cyclical			2,917,726
Consumer, Non-cyclical 3.5%
		McDonald’s Corp., 5.300%, due March 15, 2017	500,000	558,795
		Kraft Foods Inc., 6.500%, due August 11, 2017	250,000	288,275
		Yum! Brands Inc., 5.300%, due September 15, 2019	355,000	393,290
	Total Consumer, Non-cyclical			1,240,360
Energy 15.7
		Kinder Morgan Energy Partners, 5.625%, due February 15, 2015	500,000	521,325
		PPL Energy Supply LLC, 5.700%, due October 15, 2015	80,000	85,314
		Plains All American Pipeline, 6.125%, due January 15, 2017	1,345,000	1,510,825
		XTO Energy Inc., 6.250%, August 1, 2017	1,000,000	1,159,650
		Kinder Morgan Energy Partners, 5.950%, due February 15, 2018	460,000	521,189
		Transocean Inc., 7.375%, due April 15, 2018	1,350,000	1,552,756
		Hess Corporation, 8.125%, due February 15, 2019	199,000	249,138
	Total Energy			5,600,197
Financial 1.8%
		American Express Credit Co., 5.300%, due December 2, 2015	117,000	125,643
		General Electric Capital Corp., 5.625%, due September 15, 2017	215,000	243,941
	Total Financial			369,584
Paper & Forest Products Industry 1.0%
		International Paper, 9.375%, due May 15, 2019	500,000	652,850
	Total Paper & Forest Products Industry			652,850
Technology 4.0%
		Cisco Systems Inc., 5.500%, due February 22, 2016	960,000	1,048,464
		Oracle Corp., 5.000%, due July 08, 2019	250,000	282,197
		Adobe Systems Inc., 4.750%, due February 1, 2020	100,000	109,954
	Total Technology			1,440,615
Transportation 4.6%
		Union Pacific Corp., 4.875%, due January 15, 2015	1,000,000	1,033,510
		FedEx Corp., 8.000%, due January 15, 2019	500,000	621,145
	Total Transportation			1,654,655
Utilities 6.8%
		Potomac Electric Power, 4.650%, due April 15, 2014	600,000	600,846
		Southern Power Company, 4.875%, due July 15, 2015	1,250,000	1,314,062
		Southern Electric Power, 5.550%, due January 15, 2017	174,000	191,238
		Metropolitan Edison, 7.700%, due January 15, 2019	250,000	300,352
	Total Utilities			2,406,498
	Total - US Corporate Bonds (Cost $20,006,591)			$21,718,108
U.S. Common Stock 20.4%
Chemicals - Speciality 0.1%
		Terra Nitrogen Company LP	225	34,240
	Total Chemicals - Specialty			34,240
Computer Software & Services 0.4%
		Microsoft Corp.	3,640	149,204
	Total Computer Software & Services			149,204
Drug Industry 1.3%
		Bristol-Myers Squibb	1,500	77,925
		Lilly Eli & Co.	2,000	117,720
		Merck & Co. Inc.	5,000	283,850
	Total Drug Industry			479,495
Electric Utility 3.9%
		Aliant Energy	2,000	113,620
		Avista Corp.	2,000	61,300
		Consolidated Edison Inc.	1,500	80,475
		Duke Energy Corp.	3,665	261,043
		Entergy Corporation New	1,570	104,954
		Exelon Corp.	1,400	46,984
		Firstenergy Corp.	1,255	42,708
		Nextra Energy	1,000	95,620
		Northeast Utilities	787	35,818
		One Gas, Inc.	300	10,779
		Pepco Holdings Inc.	7,080	144,998
		PPL Corporation	4,945	163,877
		Scana Corp.	700	35,924
		Southern Company	4,150	182,351
	Total Electric Utility			1,380,451
Exchange Traded Funds 0.8%
		iShares Investment Grade Corp. Bonds	640	74,842
		iShares S&P Preferred Stock Index Fund	2,516	98,199
		SPDR Barclays Capital High Yield	2,600	107,432
	Total Exchange Traded Funds			280,473
Food Processing 0.2%
		Kraft Foods Group	500	28,050
		Mondelez International Inc.	1,500	51,825
	Total Food Processing			79,875
Metals & Mining 0.04%
		Silver Wheaton Corp.	700	15,890
	Total Mining			15,890
Mutual Funds 0.2%
		Blackrock Global Floating Rate Income Fund	3,179	45,269
		John Hancock Preferred Income Fund	3,284	65,384
	Total Mutual Funds			110,653
Natural Gas Utility 0.2%
		Atmos Energy Corp.	1,500	70,695
	Total Natural Gas Utility			70,695
Natural Gas Diversified 0.2%
		ONEOK Inc.	1,200	71,100
	Total Natural Gas Diversified			71,100
Office Equipment 0.2%
		Pitney Bowes Inc.	3,000	77,970
	Total Office Equipment			77,970
Oil Field Services and Equipment 0.2%
		Diamond Offshore Drilling	1,515	73,871
	Total Oil Field Services and Equipment			73,871
Petroleum Industry 0.5%
		Chevron Corp.	1,800	214,038
		Hollyfrontier Corp	3,400	161,772
	Total Petroleum Industry			375,810
Real Estate Investment Trust 6.6%
		AvalonBay Communities	790	103,743
		Digital Realty Trust Inc.	1,500	79,620
		EPR Properties	1,900	101,441
		Healthcare Realty Trust Inc.	2,300	55,545
		Highwoods Properties Inc.	1,300	49,933
		Hospitality Properties Trust	9,600	275,712
		Liberty Property Trust	5,240	193,670
		LTC Properties Inc.	4,830	181,753
		Mack Cali Rlty Corp	5,600	116,424
		National Retail Properties	1,470	50,450
		Omega Healthcare Investors	5,831	195,455
		Realty Income Corp.	2,230	91,118
		Redwood Trust Inc.	2,600	52,728
		Sabra Healthcare Reit Inc.	1,960	54,664
		Senior Housing Properties Trust	10,400	233,688
		Stag Industrial Inc.	7,130	171,833
		Sun Communities	3,180	143,386
		Ventas Inc.	600	36,342
		Washington Real Estate Investment Trust	6,600	157,608
	Total Real Estate Investment Trust			2,345,113
Telecommunications Services 4.8%
		AT&T	9,200	322,644
		CenturyTel Inc.	6,900	226,596
		Consolidated Communications Holdings, Inc.	9,600	192,096
		Frontier Communications Corp.	192	1,095
		Verizon Communications Inc.	20,540	977,088
	Total Telecommunications Services			1,719,519
Total US Common Stock (Cost $6,726,869)				7,264,359
Foreign Stocks 0.49%
Britain Common Stock 0.1%
Food Processing Insustry
		Unilever PLC	800	34,224
	Total UK Common Stock			34,224
Canadian Common Stock 0.1%
Petroleum Industry
		Penn West Petroleum	3,400	28,424
Ulities
		Atlantic Power Corp	2,700	7,830
	Total Canadian Common Stock			36,254
France Common Stock 0.09%
Drug Industry
		Sanofi-Aventis-ADR	600	31,368
	Total France Common Stock			31,368
Netherlands Common Stock 0.2%
Petroleum Industry
		Royal Dutch Shell PLC	400	29,224
		Seadrill Ltd.	1,200	42,192
	Total Netherlands Petroleum Industry			71,416
Total Foreign Common Stock (Cost $186,903)				173,262
Publicly Traded Partnership Stocks 11.6%
Publicly Traded Partnerships - Oil/Gas Distribution 11.6%
		Amerigas Partners-LP	7,230	305,467
		Atlas Pipeline Partners LP	3,301	105,995
		Boardwalk Pipeline Partners	10,218	137,023
		Breitburn Energy	4,700	93,859
		Buckeye Partners LP	6,472	485,724
		CVR Partners LP	4,760	100,864
		El Paso Pipeline Partners LP	5,800	176,262
		Enbridge Energy Partners LP	3,700	101,417
		Energy Transfer Partners LP	7,050	379,219
		Enterprise Products Partners	1,600	110,976
		Kinder Morgan Energy Partners	3,600	266,220
		KKR and Co. LP	2,370	54,131
		Linn Energy LLC	5,890	166,805
		Magellan Midstream Partners	2,200	153,428
		Market West Partners LP	2,000	130,640
		Nustar Energy LP Unit Com	4,100	225,295
		Plains All American Pipeline	3,914	215,740
		Regency Energy Partners LP	3,060	83,293
		Spectra Energy Partners LP	2,550	124,822
		Suburban Propane Partners LP	3,200	132,928
		Targa Resources Partners LP	3,460	194,660
		TC Pipelines LP	2,300	110,239
		Williams Partners LP	5,240	266,926
	Total Publicly Traded Partnerships Stocks- Oil/Gas Distribution			4,121,933
		Total Publicly Traded Partnership (Cost $4,053,658)		4,121,933
Short-Term Investments 6.6%
	Money Market Fund			$2,347,238
		Total Short- Term Investments (Cost $2,347,238)		$2,347,238
TOTAL INVESTMENT IN SECURITIES (Cost $33,321,259)				$35,624,900

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 market value as of March 31, 2014:

Investments in Securities	Level 1	Level 2	Level 3	Balance
US Corporate Bonds		21,718,108		21,718,108
US Common Stock (not incl PTP's below)	7,264,359			7,264,359
Foreign Common Stock	173,262			173,262
Publicly Traded Partnerships Stocks	4,121,933			4,121,933
Cash and Equivalents (Money Market)	2,347,238			2,347,238
TOTALS				$35,624,900

ITEM 2. CONTROLS AND PROCEDURES.

(a) The registrant’s President 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
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 L. Jones, Sr.
	Louis L. Jones, Sr.
	President

Date: April 28, 2014

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: April 28, 2014

EX-99.CERT

Exhibit 3 (a) (1)

CERTIFICATIONS

I, Louis L. Jones, Sr., 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 L. Jones, Sr.

Louis A. Thompson

President

Date: April 28, 2014

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: April 28, 2014