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, 2017

	INVESTMENTS IN SECURITIES
	U.S. Corporate Bonds - 8.6%
	American Depository Receipts - 0.8%
June 22, 2009		Deutsche Telekom, 6.000%, due July 8, 2019		250,000	267,278
			Total American Depository Receipts		267,278
	Consumer Staples - 1.0%
August 25, 2009		Yum! Brands Inc, 5.300%, due September 15, 2019		355,000	373,638
			Total Customer Staples		373,638
	Energy - 1.9%
February 3, 2009		Hess Corp., 8.125%, due February 15, 2019		199,000	213,674
February 12, 2008		Kinder Morgan Energy Partners, 5.950%, due February 15, 2018		460,000	466,776
			Total Energy		680,450
	Industrials - 1.6%
May 11, 2009		International Paper, 9.375%, due May 15, 2019		500,000	557,625
			Total Industrials		557,625
	Information Technology - 1.0%
February 1, 2010		Adobe Systems, Inc., 4.750%, due February 1, 2020		100,000	106,470
July 8, 2009		Oracle Corp., 5.000%, due July 8, 2019		250,000	264,105
			Total Information Technology		370,575
	Transportation - 1.5%
January 16, 2009		FedEx Corp., 8.000%, due January 15, 2019		500,000	538,675
			Total Transportation		538,675
	Utilities - 0.7%
January 20, 2009		Metropolitan Edison, 7.700%, due January 15, 2019		250,000	267,000
			Total Utilities		267,000
			Total U.S. Corporate Bonds (Cost $2,942,554)		3,055,240
	U.S. Common Stock - 83.2%
	American Depository Receipts - 2.0%
		Atlantic Power Corp.		2,700	6,615
		Eaton Corp, PLC		1,400	107,506
		Enbridge Inc.		5,215	218,196
		Invesco Ltd.		3,300	115,632
		Obsidian Energy Ltd.		3,400	3,570
		Royal Dutch Shell, PLC		2,800	175,112
		Sanofis-Aventis		600	29,874
		Seadrill, Ltd.		1,200	420
		Unilever PLC		800	46,368
		Wheaton Precious Metals Corp.		700	13,363
			Total American Depository Receipts		716,656
	Consumer Staples - 2.1%
		Coca Cola Company		6,700	301,567
		The Kraft Heinz Company		4,900	379,995
		Mondelez International, Inc.		1,500	60,990
			Total Consumer Staples		742,552
	Consumer Discretionary - 0.6%
		Genuine Parts Co.		2,400	229,560
			Total Consumer Discretionary		229,560
	Energy - 2.9%
		Chevron Corp.		3,600	423,000
		Diamond Offshore Drilling, Inc.		1,515	21,968
		Exxon Mobil Corp.		2,400	196,752
		Hollyfrontier Corp.		3,400	122,298
		Kinder Morgan, Inc.		14,119	270,802
			Total Energy		1,034,820
	Financials - 22.7%
		AvalonBay Communities, Inc.		1,750	312,235
		Digital Realty Trust, Inc.		2,350	278,076
		EPR Properties		1,900	132,506
		Equity Residential PPTYS		3,000	197,790
		Essex PPTY		400	101,612
		HCP, Inc.		4,600	128,018
		Healthcare Realty Trust, Inc.		5,425	175,445
		Highwoods Properties, Inc.		1,300	67,717
		Hospitality Properties Trust		13,400	381,766
		Iron Mountain Inc.		5,100	198,390
		Lamar Advertising Company		2,950	202,164
		Liberty Properties Trust		13,540	555,952
		LTC Properties, Inc.		7,330	344,363
		Mack Cali Rlty Corp.		5,600	132,776
		National Retail Properties, Inc.		1,470	61,240
		Omega Healthcare Investors, Inc.		5,831	186,067
		Public Storage Inc.		1,000	213,990
		Quality Care Properties Inc.		920	14,260
		Realty Income Corp.		12,255	700,863
		Redwood Trust, Inc.		2,600	42,354
		RMR Group, Inc., The		274	14,070
		Sabra Health Care REIT, Inc.		2,970	65,162
		Senior Housing Properties Trust		10,400	203,320
		Stag Industrial, Inc.		14,530	399,139
		Sun Communities, Inc.		4,305	368,852
		T Rowe Price Group Inc.		5,300	480,445
		Tanger Factory Outlet Ctr.		4,300	105,006
		Ventas, Inc.		8,700	566,631
		Vornado Realty Trust		2,500	192,200
		Washington REIT		6,600	216,216
		Wells Fargo & Co.		7,740	426,861
		Welltower, Inc.		8,810	619,167
			Total Financials		8,084,653
	Health Care - 4.9%
		Amgen Inc.		2,380	443,751
		Bristol Myers Squibb		6,900	439,806
		Eli Lilly & Co.		2,500	213,850
		Merck & Co Inc.		3,125	200,094
		Pfizer Inc.		12,500	446,250
			Total Healthcare		1,743,751
	Industrials - 3.9%
		Boeing Co.		1,220	310,136
		Caterpillar Inc.		2,140	266,879
		General Electric Co.		13,430	324,737
		Pitney Bowes, Inc.		3,000	42,030
		United Parcel Service		3,670	440,730
			Total Industrials		1,384,513
	Information Technology - 3.1%
		Cisco Systems, Inc.		12,810	430,800
		International Business Machines Corp.		1,150	166,842
		Paychex, Inc.		8,325	499,167
			Total Information Technology		1,096,809
	Master Limited Partnerships - 8.3%
		Amerigas Partners LP		7,230	324,916
		Boardwalk Pipeline Partners LP		10,218	150,205
		Breitburn Energy Partners LP		4,700	-
		Buckeye Partners LP		6,472	368,904
		CVR Partners LP		4,760	15,375
		Enbridge Energy Partners LP		3,700	59,126
		Energy Transfer Partners LP		12,468	228,040
		Enterprise Products Partners LP		11,200	291,984
		KKR & Co. LP		2,370	48,182
		Linnco LLC		5,890	-
		Magellan Midstream Partners LP		6,200	440,572
		MPLX LP		2,180	76,322
		Nustar Energy LP		4,100	166,419
		Plains All American Pipeline LP		3,914	82,938
		Spectra Energy Partners LP		6,866	304,713
		Suburban Propane Partners LP		3,200	83,488
		TC Pipelines LP		2,300	120,336
		Terra Nitrogen Company LP		225	18,394
		Williams Partners LP		4,541	176,645
			Total Master Limited Partnerships		2,956,558
	Materials - 0.3%
		International Paper Co		1,900	107,958
			Total Mutual Funds		107,958
	Mutual Funds - 1.1%
		Blackrock Global Floating Rate Income Fund		3,179	44,856
		John Hancock Preferred Income Fund		3,284	72,018
		iShares Investment Grade Corp. Bonds		640	77,587
		iShares US Preferred ETF		2,516	97,646
		SPDR Barclays High Yield Bond ETF		2,600	97,032
			Total Mutual Funds		389,139
	Telecommunication Services - 8.1%
		AT & T, Inc.		29,570	1,158,257
		Centurylink, Inc.		6,900	130,410
		Consolidated Communications		9,600	183,168
		Verizon Communications		28,300	1,400,567
			Total Telecommunication Services		2,872,402
	Utilities - 23.2%
		Alliant Energy Corp.		12,400	515,468
		American Electric Power, Inc.		8,240	578,778
		Atmos Energy Corp.		1,500	125,760
		Centerpoint Energy, Inc.		16,200	473,202
		Consolidated Edison		8,100	653,508
		Dominion Res, Inc.		10,900	838,537
		Duke Energy Corp.		9,095	763,252
		Entergy Corp.		2,870	219,153
		Eversource Energy		10,481	633,472
		Exelon Corp.		6,500	244,855
		Firstenergy Corp		1,255	38,692
		NextEra Energy, Inc.		2,500	366,375
		PPL Corporation		10,445	396,388
		Public Service Enterprise Group, Inc.		12,000	555,000
		Scana Corp.		700	33,943
		Sempra Corp		1,740	198,586
		Southern Company		12,530	615,724
		WEC Energy Group, Inc.		9,240	580,087
		Xcel Energy, Inc.		9,540	451,433
			Total Utilities		8,282,212
			Total U.S. Common Stock (Cost $28,597,641)		$        29,641,583
	Cash Equivalents - 8.2%
			Total Cash Equivalents (Cost $2,939,388)		$          2,939,388
			TOTAL INVESTMENT IN SECURITIES (Cost $34,476,417)		$        35,636,211

 

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		3,055,240		3,055,240
US Common Stock	29,641,583			29,641,583
Cash Equivalents	2,939,388			2,939,388
TOTALS				$35,636,211

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:November 28, 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: November 28, 2017

EX-3

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 28, 2017

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:November 28, 2017