N-Q 1 NQ-firstquareter2016.htm

 

 

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, 2016

 

 
Principal Amount or Shares
  
Market Value
INVESTMENTS IN SECURITIES
U.S. Corporate Bonds 38.5%
American Depository Receipts - 0.8%
Deutsche Telekom, 6.000%, due July 8, 2019
250,000
281,575
Total American Depository Receipts:
281,575
Communications - 6.2%
Viacom, Inc., 4.625%, due May 15, 2018
2,000,000
2,111,100
Total Communications:
2,111,100
Consumer Staples - 7.6%
Avon Products, Inc., 6.500%, due March 1, 2019
500,000
427,500
Kraft Foods, Inc., 6.500%, due August 11, 2017
250,000
266,543
McDonald’s Corp., 5.300%, due March 15, 2017
500,000
520,840
Target Corp., 5.875%, due July 15, 2016
1,000,000
1,014,100
Yum! Brands, Inc., 5.300%, due September 15, 2019
355,000
373,638
Total Consumer Staples:
2,602,620
Energy - 8.7%
Hess Corp., 8.125%, due February 15, 2019
199,000
218,641
Kinder Morgan Energy Partners, 5.950%, due February 15, 2018
460,000
481,505
Transocean, Inc., 7.375%, due April 15, 2018
1,350,000
1,221,750
XTO Energy, Inc., 6.250%, August 1, 2017
1,000,000
1,069,820
Total Energy:
2,991,716
Financials 0.7%
General Electric Capital Corp., 5.625%, due September 15, 2017
215,000
229,583
Total Financials:
229,583
Industrials - 6.3%
E.I. Du Pont de Nemour, 5.250%, due December 15, 2016
1,519,000
1,563,628
International Paper, 9.375%, due May 15, 2019
500,000
595,100
Total Industrials:
2,158,728
Information Technology 1.1%
Adobe Systems, Inc., 4.750%, due February 1, 2020
100,000
110,104
Oracle Corp., 5.000%, due July 08, 2019
250,000
279,655
Total Information Technology:
389,759
Master Limited Partnership 4.1%
Plains All American Pipeline, 6.125%, due January 15, 2017
1,345,000
1,389,210
Total Master Limited Partnership:
1,389,210
Transportation 1.7%
FedEx Corp., 8.000%, due January 15, 2019
500,000
585,790
Total Transportation:
585,790
Utilities 1.3%
Metropolitan Edison, 7.700%, due January 15, 2019
250,000
280,408
Southern Electric Power, 5.550%, due January 15, 2017
174,000
179,613
Total Utilities:
460,021
Total - US Corporate Bonds (Cost $12,891,216)
$13,200,103
U.S. Common Stock 54.9%
American Depository Receipts 0.7%
Atlantic Power Corp.
2,700
6,642
Penn West Petroleum, Ltd.
3,400
3,162
Royal Dutch Shell
2,800
137,732
Sanofi-Aventis
600
24,096
Seadrill, Ltd.
1,200
3,960
Silver Wheaton Corp.
700
11,606
Unilever
800
36,144
Total American Depository Receipts:
223,342
Consumer Staples 3.4%
Coca Cola Company
6,700
  
310,813
Kraft Heinz Company, The
4,900
384,944
Mondelez International, Inc.
1,500
60,180
Procter & Gamble Co.
2,430
200,013
Wal Mart Stores, Inc.
3,040
208,210
Total Consumer Staples:
1,164,160
Energy 3.4%
Chevron Corp.
1,800
  
171,720
Diamond Offshore Drilling, Inc.
1,515
32,921
Exxon Mobil Corp.
4,950
413,771
Hollyfrontier Corp
3,400
120,088
Kinder Morgan, Inc.
14,119
252,165
Linn Energy
5,890
2,104
One Gas, Inc.
300
  
18,330
Spectra Energy Corp.
5,300
162,180
Total Energy:
1,173,279
Financials 11.7%
AvalonBay Communities, Inc.
790
150,258
Care Capital Properties, Inc.
900
24,156
Digital Realty Trust, Inc.
1,500
132,735
EPR Properties
1,900
  
126,578
HCP, Inc.
4,600
149,868
Healthcare Realty Trust, Inc.
2,300
71,047
Highwoods Properties, Inc.
1,300
  
62,153
Hospitality Properties Trust
9,600
254,976
Liberty Properties Trust
8,740
292,440
LTC Properties, Inc.
4,830
218,509
Mack Cali Rlty Corp.
5,600
131,600
National Retail Properties, Inc.
1,470
  
67,914
Omega Healthcare Investors, Inc.
5,831
205,834
Realty Income Corp.
7,130
  
445,696
Redwood Trust, Inc.
2,600
34,008
RMR Group, Inc., The
274
6,853
Sabra Healthcare REIT, Inc.
1,960
39,376
Senior Housing Properties Trust
10,400
186,056
Stag Industrial, Inc.
7,130
145,167
Sun Communities, Inc.
3,180
227,720
Ventas, Inc.
5,600
352,576
Washington REIT
6,600
192,786
Wells Fargo & Co.
3,840
185,702
Welltower, Inc
4,310
298,855
Total Financials:
4,002,865
Healthcare 1.9%
Bristol-Myers Squibb
1,500
95,820
Eli Lilly & Co.
2,000
144,020
Merck & Co., Inc.
4,000
211,640
Pfizer, Inc.
6,240
184,954
Total Healthcare:
636,434
Industrials 0.7%
Caterpillar, Inc.
2,340
179,104
Pitney Bowes, Inc.
3,000
64,620
Total Industrials:
243,724
Information Technology 2.7%
Cisco Systems, Inc.
8,700
247,689
International Business Machines (IBM) Corp.
1,600
242,320
Microsoft Corp.
3,640
201,037
Paychex, Inc.
4,600
248,446
Total Information Technology:
939,492
Master Limited Partnerships 7.7%
Amerigas Partners LP
7,230
314,288
Boardwalk Pipeline Partners LP
10,218
150,613
Breitburn Energy Partners LP
4,700
2,629
Buckeye Partners LP
6,472
439,708
CVR Partners LP
4,760
39,794
Enbridge Energy Partners LP
3,700
67,784
Energy Transfer Partners LP
8,312
268,810
Enterprise Products Partners LP
3,200
78,784
KKR and Co. LP
2,370
  
34,815
Magellan Midstream Partners LP
4,700
323,360
MPLX LP
2,180
64,724
Nustar Energy LP
4,100
165,640
Plains All American Pipeline LP
3,914
82,077
Spectra Energy Partners LP
3,466
166,784
Suburban Propane Partners LP
3,200
95,648
Targa Resources Partners LP
3,341
99,762
TC Pipelines LP
2,300
110,906
Terra Nitrogen Company LP
225
25,038
Williams Partners LP
4,541
92,863
Total Master Limited Partnerships:
2,624,028
Mutual Funds 1.1%
Blackrock Global Floating Rate Income Fund
3,179
  
40,787
John Hancock Preferred Income Fund
3,284
72,970
iShares Investment Grade Corp. Bonds
640
76,045
iShares US Preferred ETF
2,516
98,199
SPDR Barclays High Yield Bond ETF
2,600
89,050
Total Mutual Funds:
377,051
       
Telecommunication Services 8.6%
AT & T, Inc.
29,570
1,158,257
Centurylink, Inc.
6,900
220,524
Consolidated Communications
9,600
247,296
Frontier Communications Corp.
192
1,073
Verizon Communications
24,540
1,327,123
Total Telecommunication Services:
2,954,273
       
Utilities 13.1%
Aliant Energy Corp.
3,700
274,836
American Electric Power, Inc.
4,340
  
288,176
Atmos Energy Corp.
1,500
  
111,390
Avista Corp.
2,000
81,560
Centerpoint Energy, Inc.
13,000
271,960
Dominion Res, Inc.
4,200
315,504
Duke Energy Corp.
5,095
411,065
Entergy Corp.
2,870
227,534
Eversource Energy
4,981
  
290,592
Exelon Corp.
1,400
50,204
Firstenergy Corp.
1,255
45,142
NextEra Energy
1,000
  
118,340
ONEOK, Inc.
1,200
35,832
Piedmont Natural Gas Company, Inc.
2,700
  
161,541
PPL Corp.
4,945
188,256
Public Service Enterprise Group, Inc.
5,500
  
259,270
Scana Corp.
700
49,105
Southern Company
12,530
  
648,177
Talen Energy Corp.
617
5,553
WEC Energy Group, Inc.
4,100
246,287
Xcel Energy, Inc.
9,540
398,963
Total Utilities:
4,479,286
Total US Common Stock (Cost $18,817,933)
    
18,817,933
       
Cash Equivalents 6.6%
Total Cash Equivalents (Cost $2,265,977)
$2,265,977
TOTAL INVESTMENT IN SECURITIES (Cost $33,611,808)
$34,284,013

 

 

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, 2016:

 

Investments in Securities

Level 1

 

Level 2

 

Level 3

Balance

US Corporate Bonds

13,200,103

13,200,103

US Common Stock

18,817,933

18,817,933

Cash Equivalents

2,265,977

2,265,977

TOTALS

 

 

 

 

 

$34,284,013

 

 

 

 

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 26, 2016

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 26, 2016