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 reporting period: March 31, 2015

			Principal Amount or Shares	Market Value
INVESTMENTS IN SECURITIES
U.S. Corporate Bonds 46.3%
Chemicals Industry 4.7%
		E.I. Du Pont de Nemour, 5.250%, due December 15, 2016	1,519,000	1,633,229
	Total Chemical Industry			1,633,229
Communications 7.0%
		CBS Corporation, 4.625%, due May 15, 2018	2,000,000	2,168,200
		Deutsche Telekom Int. Fin., 6.000%, due July 8, 2019	250,000	291,050
	Total Communications			2,459,250
Consumer, Cyclical 4.5%
		Target Corp., 5.875%, due July 15, 2016	1,000,000	1,066,190
		Avon Products Inc., 6.500%, due March 1, 2019	500,000	497,500
	Total Consumer, Cyclical			1,563,690
Consumer, Non-cyclical 3.5%
		McDonald’s Corp., 5.300%, due March 15, 2017	500,000	539,695
		Kraft Foods Inc., 6.500%, due August 11, 2017	250,000	279,173
		Yum! Brands Inc., 5.300%, due September 15, 2019	355,000	395,832
	Total Consumer, Non-cyclical			1,214,700
Energy 13.4%
		PPL Energy Supply LLC, 5.700%, due October 15, 2015	80,000	80,970
		Plains All American Pipeline, 6.125%, due January 15, 2017	1,345,000	1,452,492
		XTO Energy Inc., 6.250%, August 1, 2017	1,000,000	1,119,500
		Kinder Morgan Energy Partners, 5.950%, due February 15, 2018	460,000	508,548
		Transocean Inc., 7.375%, due April 15, 2018	1,350,000	1,312,875
		Hess Corporation, 8.125%, due February 15, 2019	199,000	238,929
	Total Energy			4,713,314
Financial 1.0%
		American Express Credit Co., 5.300%, due December 2, 2015	117,000	120,607
		General Electric Capital Corp., 5.625%, due September 15, 2017	215,000	237,745
	Total Financial			358,352
Paper & Forest Products Industry 1.8%
		International Paper, 9.375%, due May 15, 2019	500,000	637,210
	Total Paper & Forest Products Industry			637,210
Technology 4.0%
		Cisco Systems Inc., 5.500%, due February 22, 2016	960,000	1,002,096
		Oracle Corp., 5.000%, due July 08, 2019	250,000	282,800
		Adobe Systems Inc., 4.750%, due February 1, 2020	100,000	111,671
	Total Technology			1,396,567
Transportation 1.7%
		FedEx Corp., 8.000%, due January 15, 2019	500,000	606,260
	Total Transportation			606,260
Utilities 5.0%
		Southern Power Company, 4.875%, due July 15, 2015	1,250,000	1,265,138
		Southern Electric Power, 5.550%, due January 15, 2017	174,000	187,537
		Metropolitan Edison, 7.700%, due January 15, 2019	250,000	298,730
	Total Utilities			1,751,405
	Total - US Corporate Bonds (Cost $15,546,594)			$16,333,977
U.S. Common Stock 38.0%
Chemicals - Speciality 0.1%
		Terra Nitrogen Company LP	225	32,785
	Total Chemicals - Specialty			32,785
Computer Software & Services 0.4%
		Microsoft Corp.	3,640	147,984
	Total Computer Software &Services			147,984
Construction & Mining Equipment 0.4%
		Caterpillar Inc.	2,340	187,270
	Total Construction & Mining Equipment			187,270
Drug Industry 1.9%
		Bristol-Myers Squibb	1,500	96,750
		Lilly Eli & Co.	2,000	145,300
		Merck & Co. Inc.	3,460	198,881
		Pfizer Inc. Com	6,240	217,090
	Total Drug Industry			658,021
Electric Utility 9.9%
		Aliant Energy	3,700	233,100
		American Electric Power	3,540	199,125
		Avista Corp.	2,000	68,360
		Consolidated Edison Inc.	1,500	91,500
		Duke Energy Corp.	5,095	391,194
		Entergy Corporation New	2,870	222,396
		Eversource Energy	4,981	251,640
		Exelon Corp.	1,400	47,054
		Firstenergy Corp.	1,255	44,000
		General Electric	8,000	198,480
		Nextra Energy	1,000	104,050
		One Gas, Inc.	300	12,969
		Pepco Holdings Inc.	7,080	189,956
		PPL Corporation	4,945	166,449
		Public Service Enterprise Group Inc.	5,500	230,560
		Scana Corp.	700	38,493
		Southern Company	12,530	554,828
		Wisconsin Energy Corp.	2,000	99,000
		Xcel Energy Inc.	9,540	332,087
	Total Electric Utility			3,475,241
Exchange Traded Funds 0.8%
		iShares Investment Grade Corp. Bonds	640	75,894
		iShares S&P Preferred Stock Index Fund	2,516	100,917
		SPDR Barclays Capital High Yield	2,600	101,972
	Total Exchange Traded Funds			280,783
Financial 0.8%
		Wells Fargo & Co.	3,840	208,896
	Total Financial			208,896
Food Processing 1.9%
		Coca Cola Company	4,725	191,599
		Kraft Foods Group	4,900	426,864
		Mondelez International Inc.	1,500	54,135
	Total Food Processing			672,598
IT Services 0.65%
		Paychex Inc.	4,600	228,229
	Total Mining			228,229
Metals & Mining 0.04%
		Silver Wheaton Corp.	700	13,314
	Total Mining			13,314
Mutual Funds 0.3%
		Blackrock Global Floating Rate Income Fund	3,179	42,821
		John Hancock Preferred Income Fund	3,284	69,522
	Total Mutual Funds			112,343
Natural Gas Utility 0.5%
		Atmos Energy Corp.	1,500	82,950
		Piedmont Natural Gas Company Inc.	2,700	99,657
	Total Natural Gas Utility			182,607
Natural Gas Diversified 0.2%
		ONEOK Inc.	1,200	57,888
	Total Natural Gas Diversified			57,888
Office Equipment 0.2%
		Pitney Bowes Inc.	3,000	69,960
	Total Office Equipment			72,660
Oil / Gas Distribution 2.8%
		Exxon Mobil Corp.	2,320	197,200
		Kinder Morgan Inc.	14,119	593,845
		Spectra Energy Corp	5,300	191,701
	Total Oil / Gas Distribution			982,746
Oil Field Services and Equipment 0.1%
		Diamond Offshore Drilling	1,515	40,587
	Total Oil Field Services and Equipment			40,587
Petroleum Industry 0.03%
		Chevron Corp.	1,800	188,964
		Hollyfrontier Corp	3,400	136,918
		Royal Dutch Shell	2,800	175,560
	Total Petroleum Industry			501,442
Real Estate Investment Trust 9.0%
		AvalonBay Communities	790	137,658
		Digital Realty Trust Inc.	1,500	98,940
		EPR Properties	1,900	114,057
		Health Care Reit Inc.	1,570	121,455
		Healthcare Realty Trust Inc.	2,300	63,894
		Highwoods Properties Inc.	1,300	59,514
		Hospitality Properties Trust	9,600	316,704
		Liberty Property Trust	5,240	187,068
		LTC Properties Inc.	4,830	222,180
		Mack Cali Rlty Corp	5,600	107,968
		National Retail Properties	1,470	60,226
		Omega Healthcare Investors	5,831	236,564
		Realty Income Corp.	7,130	367,908
		Redwood Trust Inc.	2,600	46,462
		Sabra Healthcare Reit Inc.	1,960	64,974
		Senior Housing Properties Trust	10,400	230,776
		Stag Industrial Inc.	7,130	167,698
		Sun Communities	3,180	212,170
		Ventas Inc.	2,100	153,342
		Washington Real Estate Investment Trust	6,600	182,358
	Total Real Estate Investment Trust			3,151,916
Restaurant Industry 0.6%
		McDonalds Corp.	2,000	194,881
	Total Restaurant Industry			194,881
Telecommunications Services 6.3%
		AT&T	23,570	769,561
		CenturyTel Inc.	6,900	238,395
		Consolidated Communications Holdings, Inc.	9,600	195,840
		Frontier Communications Corp.	192	1,354
		Verizon Communications Inc.	20,540	998,860
	Total Telecommunications Services			2,204,010
Total US Common Stock (Cost $12,521,798)				13,206,301
Foreign Stocks 0.25%
Britain Common Stock 0.10%
Food Processing Insustry
		Unilever PLC	800	33,368
	Total UK Common Stock			32,944
Canadian Common Stock 0.04%
Petroleum Industry
		Penn West Petroleum	3,400	5,610
Ulities
		Atlantic Power Corp	2,700	7,587
	Total Canadian Common Stock			13,197
France Common Stock 0.08%
Drug Industry
		Sanofi-Aventis-ADR	600	29,664
	Total France Common Stock			29,664
Netherlands Common Stock 0.08%
Petroleum Industry
		Seadrill Ltd.	1,200	11,220
	Total Netherlands Petroleum Industry			11,220
Total Foreign Common Stock (Cost $167,757)				87,449
Publicly Traded Partnership Stocks 11.4%
Publicly Traded Partnerships - Oil/Gas Distribution 11.4%
		Amerigas Partners-LP	7,230	345,160
		Boardwalk Pipeline Partners	10,218	164,510
		Breitburn Energy	4,700	25,756
		Buckeye Partners LP	6,472	488,765
		Centerpoint Energy Inc.	13,000	265,330
		CVR Partners LP	4,760	62,594
		Enbridge Energy Partners LP	3,700	133,237
		Energy Transfer Partners LP	7,050	393,038
		Enterprise Products Partners	3,200	105,376
		KKR and Co. LP	2,370	54,060
		Linn Energy LLC	5,890	65,143
		Magellan Midstream Partners	4,700	360,537
		Market West Partners LP	2,000	132,200
		Nustar Energy LP Unit Com	4,100	248,870
		Plains All American Pipeline	3,914	190,886
		Regency Energy Partners LP	3,060	69,982
		Spectra Energy Partners LP	3,466	179,504
		Suburban Propane Partners LP	3,200	137,504
		Targa Resources Partners LP	6,389	222,889
		TC Pipelines LP	2,300	149,845
		Williams Partners LP	4,541	223,508
	Total Publicly Traded Partnerships Stocks- Oil/Gas Distribution			4,018,694
		Total Publicly Traded Partnership (Cost $3,793,983)		4,018,694
Short-Term Investments 4.2%
	Money Market Fund			$1,467,793
		Total Short- Term Investments (Cost $1,467,793)		$1,467,793
TOTAL INVESTMENT IN SECURITIES (Cost $33,497,925)				$35,311,412

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 September 30, 2014:

Investments in Securities	Level 1	Level 2	Level 3	Balance
US Corporate Bonds		16,333,977		16,333,977
US Common Stock (not incl PTP's below)	13,403,501			13,403,501
Foreign Common Stock	87,449			87,449
Publicly Traded Partnerships Stocks	4,018,694			4,018,694
Cash and Equivalents (Money Market)	1,467,793			1,467,793
TOTALS				$35,311,412

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 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: May 29, 2015

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 29, 2015

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 L Jones, Sr.

President

Date: May 29, 2015

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 29, 2015