N-Q 1 NQ-firstquarter2017.htm FIRST QUARTER INVESTMENTS

 

 

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: March 31, 2017

 

 
Principal Amount or Shares
  
Market Value
INVESTMENTS IN SECURITIES
U.S. Corporate Bonds 22.9%
American Depository Receipts - 0.8%
Deutsche Telekom, 6.000%, due July 8, 2019
250,000
271,155
Total American Depository Receipts:
271,155
Communications - 5.9%
Viacom, Inc., 4.625%, due May 15, 2018
2,000,000
2,062,000
Total Communications:
2,062,000
Consumer Staples - 1.8%
Kraft Foods, Inc., 6.500%, due August 11, 2017
250,000
254,183
Yum! Brands, Inc., 5.300%, due September 15, 2019
355,000
374,525
Total Consumer Staples:
628,708
Energy - 8.8%
Hess Corp., 8.125%, due February 15, 2019
199,000
218,170
Kinder Morgan Energy Partners, 5.950%, due February 15, 2018
460,000
475,691
Transocean, Inc., 7.375%, due April 15, 2018
1,350,000
1,393,875
XTO Energy, Inc., 6.250%, August 1, 2017
1,000,000
1,015,920
Total Energy:
3,103,655
Financials 0.6%
General Electric Capital Corp., 5.625%, due September 15, 2017
215,000
219,180
Total Financials:
219,180
Industrials - 1.6%
International Paper, 9.375%, due May 15, 2019
500,000
574,380
Total Industrials:
574,380
Information Technology 1.1%
Adobe Systems, Inc., 4.750%, due February 1, 2020
100,000
107,625
Oracle Corp., 5.000%, due July 08, 2019
250,000
268,073
Total Information Technology:
375,698
Transportation 1.6%
FedEx Corp., 8.000%, due January 15, 2019
500,000
551,145
Total Transportation:
551,145
Utilities 0.8%
Metropolitan Edison, 7.700%, due January 15, 2019
250,000
272,680
Total Utilities:
272,680
Total - US Corporate Bonds (Cost $7,771,117)
$8,058,600
U.S. Common Stock 68.8%
American Depository Receipts 1.9%
Atlantic Power Corp.
2,700
7,155
Eaton Corp, PLC
1,400
103,810
Enbridge, Inc.
5,215
218,196
Invesco, Ltd.
3,300
101,079
Penn West Petroleum, Ltd.
3,400
5,780
Royal Dutch Shell
2,800
156,324
Sanofi-Aventis
600
27,150
Seadrill, Ltd.
1,200
1,980
Silver Wheaton Corp.
700
14,588
Unilever
800
39,472
Total American Depository Receipts:
675,534
Consumer Staples 3.5%
Coca Cola Company
11,600
  
492,304
Kraft Heinz Company, The
4,900
444,969
Mondelez International, Inc.
1,500
64,620
Proctor & Gamble Co.
2,400
215,640
Total Consumer Staples:
1,217,533
Energy 2.9%
Chevron Corp.
3,600
  
386,532
Diamond Offshore Drilling, Inc.
1,515
25,316
Exxon Mobil Corp.
2,400
196,824
Hollyfrontier Corp.
3,400
96,356
Kinder Morgan, Inc.
14,119
306,947
Total Energy:
1,011,975
Financials 14.3%
AvalonBay Communities, Inc.
1,200
220,320
Care Capital Properties, Inc.
900
24,183
Digital Realty Trust, Inc.
1,500
159,585
EPR Properties
1,900
  
139,897
HCP, Inc.
4,600
143,888
Healthcare Realty Trust, Inc.
2,300
74,750
Highwoods Properties, Inc.
1,300
  
63,869
Hospitality Properties Trust
13,400
422,502
Liberty Properties Trust
8,740
336,927
LTC Properties, Inc.
4,830
231,357
Mack Cali Rlty Corp.
5,600
150,864
National Retail Properties, Inc.
1,470
  
64,121
Omega Healthcare Investors, Inc.
5,831
192,365
Quality Care Properties Inc.
920
17,351
Realty Income Corp.
10,530
  
626,851
Redwood Trust, Inc.
2,600
43,186
RMR Group, Inc., The
274
13,563
Sabra Healthcare REIT, Inc.
1,960
54,743
Senior Housing Properties Trust
10,400
210,600
Stag Industrial, Inc.
7,130
178,393
Sun Communities, Inc.
3,180
255,449
Ventas, Inc.
7,200
468,288
Washington REIT
6,600
206,448
Wells Fargo & Co.
3,840
213,734
Welltower, Inc
7,310
517,694
Total Financials:
5,030,929
Healthcare 2.3%
Bristol-Myers Squibb
3,300
179,464
Merck & Co., Inc.
3,125
198,563
Pfizer, Inc.
12,500
427,625
Total Healthcare:
805,642
Industrials 2.4%
Boeing Co.
1,220
215,769
Caterpillar Inc.
2,140
198,506
General Electric Co.
13,430
400,214
Pitney Bowes, Inc.
3,000
39,330
Total Industrials:
853,820
Information Technology 2.9%
Cisco Systems, Inc.
12,810
432,978
International Business Machines Corp.
1,150
200,261
Paychex, Inc.
6,600
388,740
Total Information Technology:
1,021,979
Master Limited Partnerships 9.2%
Amerigas Partners LP
7,230
340,461
Boardwalk Pipeline Partners LP
10,218
187,092
Breitburn Energy Partners LP
4,700
358
Buckeye Partners LP
6,472
443,720
CVR Partners LP
4,760
22,134
Enbridge Energy Partners LP
3,700
70,300
Energy Transfer Partners LP
8,312
303,554
Enterprise Products Partners LP
11,200
309,232
KKR and Co. LP
2,370
  
43,205
Magellan Midstream Partners LP
6,200
476,842
MPLX LP
2,180
78,654
Nustar Energy LP
4,100
213,118
Plains All American Pipeline LP
3,914
123,722
Spectra Energy Partners LP
4,466
194,986
Suburban Propane Partners LP
3,200
86,272
TC Pipelines LP
2,300
137,218
Terra Nitrogen Company LP
225
22,104
Williams Partners LP
4,541
185,409
Total Master Limited Partnerships:
3,238,380
Mutual Funds 1.1%
Blackrock Global Floating Rate Income Fund
3,179
  
45,428
John Hancock Preferred Income Fund
3,284
69,785
iShares Investment Grade Corp. Bonds
640
75,462
iShares US Preferred ETF
2,516
97,369
SPDR Barclays High Yield Bond ETF
2,600
96,018
Total Mutual Funds:
384,063
       
Telecommunication Services 8.5%
AT & T, Inc.
29,570
1,228,634
Centurylink, Inc.
6,900
162,633
Consolidated Communications
9,600
224,832
Frontier Communications Corp.
192
411
Verizon Communications
28,300
1,379,625
Total Telecommunication Services:
2,996,134
       
Utilities 19.7%
Aliant Energy Corp.
9,900
392,139
American Electric Power, Inc.
6,740
  
452,456
Atmos Energy Corp.
1,500
  
118,485
Avista Corp.
2,000
78,100
Centerpoint Energy, Inc.
16,200
446,634
Consolidated Edison
4,300
  
333,938
Dominion Res, Inc.
8,300
643,831
Duke Energy Corp.
9,095
745,881
Entergy Corp.
2,870
218,005
Eversource Energy
10,481
  
616,073
Exelon Corp.
1,400
50,372
Firstenergy Corp.
1,255
39,934
NextEra Energy
2,500
  
320,925
PPL Corp.
10,445
390,539
Public Service Enterprise Group, Inc.
12,000
  
532,200
Scana Corp.
700
45,745
Southern Company
12,530
  
623,743
WEC Energy Group, Inc.
7,600
460,788
Xcel Energy, Inc.
9,540
424,053
Total Utilities:
6,933,842
Total US Common Stock (Cost $22,983,375)
    
24,169,829
       
Cash Equivalents 8.2%
Total Cash Equivalents (Cost $2,890,329)
$2,890,329
TOTAL INVESTMENT IN SECURITIES (Cost $33,812,168)
$35,118,758

 

 

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, 2017:

 

Investments in Securities

Level 1

 

Level 2

 

Level 3

Balance

US Corporate Bonds

8,058,600

8,058,600

US Common Stock

24,169,829

24,169,829

Cash Equivalents

2,890,329

2,890,329

TOTALS

 

 

 

 

 

$35,118,758

 

 

 

 

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: April 25, 2017

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 25, 2017