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)

1000 Second Avenue, Suite 3320

Seattle, Washington

98104

(Address of principal executive offices) (Zip code)

Registrant's telephone number, including area code: (206)624-6166

Date of reporting period: September 30, 2016

			Principal Amount or Shares	Market Value
INVESTMENTS IN SECURITIES
U.S. Corporate Bonds 32.7%
American Depository Receipts - 0.8%
		Deutsche Telekom, 6.000%, due July 8, 2019	250,000	279,718
	Total American Depository Receipts:			279,718
Communications - 5.8%
		Viacom, Inc., 4.625%, due May 15, 2018	2,000,000	2,097,380
	Total Communications:			2,097,380
Consumer Staples - 3.2%
		Kraft Foods, Inc., 6.500%, due August 11, 2017	250,000	261,143
		McDonald’s Corp., 5.300%, due March 15, 2017	500,000	509,445
		Yum! Brands, Inc., 5.300%, due September 15, 2019	355,000	383,844
	Total Consumer Staples:			1,154,431
Energy - 8.7%
		Hess Corp., 8.125%, due February 15, 2019	199,000	228,780
		Kinder Morgan Energy Partners, 5.950%, due February 15, 2018	460,000	483,754
		Transocean, Inc., 7.375%, due April 15, 2018	1,350,000	1,370,250
		XTO Energy, Inc., 6.250%, August 1, 2017	1,000,000	1,043,560
	Total Energy:			3,126,345
Financials 0.6%
		General Electric Capital Corp., 5.625%, due September 15, 2017	215,000	224,183
	Total Financials:			224,183
Industrials - 5.9%
		E.I. Du Pont de Nemour, 5.250%, due December 15, 2016	1,519,000	1,530,362
		International Paper, 9.375%, due May 15, 2019	500,000	594,415
	Total Industrials:			2,124,777
Information Technology 1.1%
		Adobe Systems, Inc., 4.750%, due February 1, 2020	100,000	109,998
		Oracle Corp., 5.000%, due July 08, 2019	250,000	274,425
	Total Information Technology:			384,423
Master Limited Partnership 3.8%
		Plains All American Pipeline, 6.125%, due January 15, 2017	1,345,000	1,361,086
	Total Master Limited Partnership:			1,361,086
Transportation 1.6%
		FedEx Corp., 8.000%, due January 15, 2019	500,000	573,240
	Total Transportation:			573,240
Utilities 1.3%
		Metropolitan Edison, 7.700%, due January 15, 2019	250,000	280,750
		Southern Electric Power, 5.550%, due January 15, 2017	174,000	176,055
	Total Utilities:			456,805
	Total - US Corporate Bonds (Cost $11,333,185)			$11,782,387
U.S. Common Stock 54.9%
American Depository Receipts 0.7%
		Atlantic Power Corp.	2,700	6,669
		Penn West Petroleum, Ltd.	3,400	6,154
		Royal Dutch Shell	2,800	147,924
		Sanofi-Aventis	600	22,914
		Seadrill, Ltd.	1,200	2,844
		Silver Wheaton Corp.	700	18,921
		Unilever	800	37,920
	Total American Depository Receipts:			243,346
Consumer Staples 2.2%
		Coca Cola Company	6,700	283,544
		Kraft Heinz Company, The	4,900	438,599
		Mondelez International, Inc.	1,500	65,850
	Total Consumer Staples:			787,993
Energy 2.4%
		Chevron Corp.	1,800	185,256
		Diamond Offshore Drilling, Inc.	1,515	26,679
		Hollyfrontier Corp	3,400	83,300
		Kinder Morgan, Inc.	14,119	326,572
		Linn Energy	5,890	265
		Spectra Energy Corp.	5,300	226,575
	Total Energy:			848,648
Financials 13.2%
		AvalonBay Communities, Inc.	790	150,494
		Care Capital Properties, Inc.	900	25,650
		Digital Realty Trust, Inc.	1,500	145,680
		EPR Properties	1,900	149,606
		HCP, Inc.	4,600	174,570
		Healthcare Realty Trust, Inc.	2,300	78,338
		Highwoods Properties, Inc.	1,300	67,756
		Hospitality Properties Trust	13,400	398,248
		Liberty Properties Trust	8,740	352,659
		LTC Properties, Inc.	4,830	251,112
		Mack Cali Rlty Corp.	5,600	152,432
		National Retail Properties, Inc.	1,470	74,750
		Omega Healthcare Investors, Inc.	5,831	206,709
		Realty Income Corp.	7,130	477,211
		Redwood Trust, Inc.	2,600	36,816
		RMR Group, Inc., The	274	10,396
		Sabra Healthcare REIT, Inc.	1,960	49,353
		Senior Housing Properties Trust	10,400	236,184
		Stag Industrial, Inc.	7,130	174,756
		Sun Communities, Inc.	3,180	249,566
		Ventas, Inc.	5,600	395,528
		Washington REIT	6,600	205,392
		Wells Fargo & Co.	3,840	170,035
		Welltower, Inc	7,310	546,569
	Total Financials:			4,769,809
Healthcare 0.7%
		Bristol-Myers Squibb	1,500	80,880
		Eli Lilly & Co.	2,000	160,520
	Total Healthcare:			241,400
Industrials 0.7%
		General Electric Co.	6,730	199,343
		Pitney Bowes, Inc.	3,000	54,480
	Total Industrials:			253,823
Information Technology 1.6%
		Cisco Systems, Inc.	6,250	198,250
		Paychex, Inc.	6,600	381,942
	Total Information Technology:			580,192
Master Limited Partnerships 8.9%
		Amerigas Partners LP	7,230	330,122
		Boardwalk Pipeline Partners LP	10,218	175,341
		Breitburn Energy Partners LP	4,700	294
		Buckeye Partners LP	6,472	463,395
		CVR Partners LP	4,760	25,228
		Enbridge Energy Partners LP	3,700	94,091
		Energy Transfer Partners LP	8,312	307,544
		Enterprise Products Partners LP	11,200	309,456
		KKR and Co. LP	2,370	33,796
		Magellan Midstream Partners LP	6,200	438,588
		MPLX LP	2,180	73,815
		Nustar Energy LP	4,100	203,278
		Plains All American Pipeline LP	3,914	122,939
		Spectra Energy Partners LP	4,466	195,120
		Suburban Propane Partners LP	3,200	106,560
		TC Pipelines LP	2,300	131,169
		Terra Nitrogen Company LP	225	25,274
		Williams Partners LP	4,541	168,880
	Total Master Limited Partnerships:			3,204,890
Mutual Funds 1.1%
		Blackrock Global Floating Rate Income Fund	3,179	42,980
		John Hancock Preferred Income Fund	3,284	72,726
		iShares Investment Grade Corp. Bonds	640	78,835
		iShares US Preferred ETF	2,516	99,382
		SPDR Barclays High Yield Bond ETF	2,600	95,472
	Total Mutual Funds:			390,395
Telecommunication Services 8.1%
		AT & T, Inc.	29,570	1,200,838
		Centurylink, Inc.	6,900	189,267
		Consolidated Communications	9,600	242,304
		Frontier Communications Corp.	192	799
		Verizon Communications	24,540	1,275,589
	Total Telecommunication Services:			2,908,797
Utilities 15.4%
		Aliant Energy Corp.	7,400	283,494
		American Electric Power, Inc.	6,740	432,775
		Atmos Energy Corp.	1,500	111,705
		Avista Corp.	2,000	83,580
		Centerpoint Energy, Inc.	13,000	301,990
		Consolidated Edison	4,300	323,790
		Dominion Res, Inc.	8,300	616,441
		Duke Energy Corp.	7,795	623,912
		Entergy Corp.	2,870	220,215
		Eversource Energy	4,981	269,871
		Exelon Corp.	1,400	46,606
		Firstenergy Corp.	1,255	41,515
		NextEra Energy	1,000	122,320
		ONEOK, Inc.	1,200	61,668
		Piedmont Natural Gas Company, Inc.	2,700	162,108
		PPL Corp.	4,945	170,949
		Public Service Enterprise Group, Inc.	5,500	230,285
		Scana Corp.	700	50,659
		Southern Company	12,530	642,789
		Talen Energy Corp.	617	8,545
		WEC Energy Group, Inc.	5,900	353,292
		Xcel Energy, Inc.	9,540	392,476
	Total Utilities:			5,550,985
Total US Common Stock (Cost $18,394,466)				19,780,276
Cash Equivalents 12.4%
		Total Cash Equivalents (Cost $4,486,033)		$4,486,033
TOTAL INVESTMENT IN SECURITIES (Cost $34,213,684)				$36,048,696

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, 2016:

Investments in Securities	Level 1	Level 2	Level 3	Balance
US Corporate Bonds		11,782,387		11,782,387
US Common Stock	19,780,276			19,780,276
Cash Equivalents	4,486,033			4,486,033
TOTALS				$36,048,696

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

 

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: November 22, 2016

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 24, 2016