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, 2018
Purchase Date | Principal Amount or Shares | Fair Value | ||||||
INVESTMENTS IN SECURITIES | ||||||||
U.S. Corporate Bonds - 5.5% | ||||||||
American Depository Receipts - 0.8% | ||||||||
June 22, 2009 | Deutsche Telekom, 6.000%, due July 8, 2019 | 250,000 | 259,850 | |||||
Total American Depository Receipts | 259,850 | |||||||
Consumer Staples - 1.1% | ||||||||
August 25, 2009 | Yum! Brands Inc, 5.300%, due September 15, 2019 | 355,000 | 364,319 | |||||
Total Customer Staples | 364,319 | |||||||
Information Technology - 1.1% | ||||||||
February 1, 2010 | Adobe Systems, Inc., 4.750%, due February 1, 2020 | 100,000 | 103,295 | |||||
July 8, 2009 | Oracle Corp., 5.000%, due July 8, 2019 | 250,000 | 257,723 | |||||
Total Information Technology | 361,018 | |||||||
Transportation - 1.6% | ||||||||
January 16, 2009 | FedEx Corp., 8.000%, due January 15, 2019 | 500,000 | 521,035 | |||||
Total Transportation | 521,035 | |||||||
Utilities - 0.8% | ||||||||
January 20, 2009 | Metropolitan Edison, 7.700%, due January 15, 2019 | 250,000 | 259,715 | |||||
Total Utilities | 259,715 | |||||||
Total U.S. Corporate Bonds (Cost $1,729,820) | 1,765,936 | |||||||
U.S. Common Stock - 91.6% | ||||||||
American Depository Receipts - 2.6% | ||||||||
Atlantic Power Corp. | 2,700 | 5,670 | ||||||
Eaton Corp, PLC | 1,400 | 111,874 | ||||||
Enbridge Inc. | 5,215 | 164,116 | ||||||
Invesco Ltd. | 6,300 | 201,663 | ||||||
Obsidian Energy Ltd. | 3,400 | 3,329 | ||||||
Royal Dutch Shell, PLC | 4,300 | 281,779 | ||||||
Sanofis-Aventis | 600 | 24,048 | ||||||
Seadrill, Ltd. | 1,200 | 234 | ||||||
Unilever PLC | 800 | 44,448 | ||||||
Wheaton Precious Metals Corp. | 700 | 14,259 | ||||||
Total American Depository Receipts | 851,420 | |||||||
Consumer Staples - 3.2% | ||||||||
Coca Cola Company | 11,050 | 479,902 | ||||||
The Kraft Heinz Company | 4,900 | 305,221 | ||||||
Mondelez International, Inc. | 1,500 | 62,595 | ||||||
Proctor & Gamble Co. | 2,200 | 174,416 | ||||||
Total Consumer Staples | 1,022,134 | |||||||
Consumer Discretionary - 0.9% | ||||||||
Genuine Parts Co. | 3,400 | 305,456 | ||||||
Total Consumer Discretionary | 305,456 | |||||||
Energy - 2.4% | ||||||||
Chevron Corp. | 1,800 | 205,272 | ||||||
Diamond Offshore Drilling, Inc. | 1,515 | 22,210 | ||||||
Exxon Mobil Corp. | 2,400 | 179,064 | ||||||
Hollyfrontier Corp. | 3,400 | 166,124 | ||||||
Kinder Morgan, Inc. | 14,119 | 212,632 | ||||||
Total Energy | 785,302 | |||||||
Financials - 24.8% | ||||||||
AvalonBay Communities, Inc. | 1,750 | 287,805 | ||||||
Digital Realty Trust, Inc. | 3,310 | 348,808 | ||||||
EPR Properties | 1,900 | 105,260 | ||||||
Equity Residential PPTYS | 3,000 | 184,860 | ||||||
Essex PPTY | 400 | 96,272 | ||||||
HCP, Inc. | 4,600 | 106,858 | ||||||
Healthcare Realty Trust, Inc. | 5,425 | 150,327 | ||||||
Highwoods Properties, Inc. | 1,300 | 56,966 | ||||||
Hospitality Properties Trust | 13,400 | 339,556 | ||||||
Iron Mountain Inc. | 8,100 | 266,166 | ||||||
Lamar Advertising Company | 5,750 | 366,045 | ||||||
Liberty Properties Trust | 16,040 | 637,269 | ||||||
LTC Properties, Inc. | 7,330 | 278,540 | ||||||
Mack Cali Rlty Corp. | 5,600 | 93,576 | ||||||
National Retail Properties, Inc. | 1,470 | 57,712 | ||||||
Omega Healthcare Investors, Inc. | 5,831 | 157,670 | ||||||
Public Storage Inc. | 1,000 | 200,390 | ||||||
Quality Care Properties Inc. | 920 | 17,876 | ||||||
Realty Income Corp. | 12,255 | 633,951 | ||||||
Redwood Trust, Inc. | 2,600 | 40,222 | ||||||
RMR Group, Inc., The | 274 | 19,166 | ||||||
Sabra Health Care REIT, Inc. | 2,970 | 52,421 | ||||||
Senior Housing Properties Trust | 10,400 | 162,864 | ||||||
Stag Industrial, Inc. | 14,530 | 347,558 | ||||||
Sun Communities, Inc. | 4,305 | 393,348 | ||||||
T Rowe Price Group Inc. | 5,300 | 572,241 | ||||||
Tanger Factory Outlet Ctr. | 6,400 | 140,800 | ||||||
Ventas, Inc. | 10,800 | 534,924 | ||||||
Vornado Realty Trust | 2,500 | 168,250 | ||||||
Washington REIT | 6,600 | 180,180 | ||||||
Wells Fargo & Co. | 9,540 | 499,991 | ||||||
Welltower, Inc. | 8,810 | 479,528 | ||||||
Total Financials | 7,977,400 | |||||||
Health Care - 5.0% | ||||||||
Amgen Inc. | 2,380 | 405,742 | ||||||
Bristol Myers Squibb | 6,900 | 436,425 | ||||||
Eli Lilly & Co. | 2,500 | 193,425 | ||||||
Merck & Co Inc. | 6,695 | 364,677 | ||||||
Pfizer Inc. | 6,000 | 212,940 | ||||||
Total Healthcare | 1,613,209 | |||||||
Industrials - 2.3% | ||||||||
General Electric Co. | 24,550 | 330,934 | ||||||
Pitney Bowes, Inc. | 3,000 | 32,670 | ||||||
United Parcel Service | 3,670 | 384,102 | ||||||
Total Industrials | 747,706 | |||||||
Information Technology - 4.5% | ||||||||
Cisco Systems, Inc. | 11,380 | 488,088 | ||||||
International Business Machines Corp. | 2,370 | 363,629 | ||||||
Paychex, Inc. | 9,925 | 611,281 | ||||||
Total Information Technology | 1,462,998 | |||||||
Master Limited Partnerships - 9.0% | ||||||||
Amerigas Partners LP | 7,230 | 288,983 | ||||||
Blackstone Group LP | 6,100 | 194,895 | ||||||
Boardwalk Pipeline Partners LP | 10,218 | 103,713 | ||||||
Buckeye Partners LP | 6,472 | 241,988 | ||||||
CVR Partners LP | 4,760 | 15,470 | ||||||
Enbridge Energy Partners LP | 3,700 | 35,668 | ||||||
Energy Transfer Partners LP | 12,468 | 202,231 | ||||||
Enterprise Products Partners LP | 18,600 | 455,328 | ||||||
KKR & Co. LP | 2,370 | 48,111 | ||||||
Magellan Midstream Partners LP | 7,600 | 443,460 | ||||||
MPLX LP | 2,180 | 72,027 | ||||||
Nustar Energy LP | 4,100 | 83,599 | ||||||
Plains All American Pipeline LP | 3,914 | 86,225 | ||||||
Spectra Energy Partners LP | 9,266 | 311,708 | ||||||
Suburban Propane Partners LP | 3,200 | 70,432 | ||||||
TC Pipelines LP | 2,300 | 79,787 | ||||||
Terra Nitrogen Company LP | 225 | 18,891 | ||||||
Williams Partners LP | 4,541 | 156,347 | ||||||
Total Master Limited Partnerships | 2,908,863 | |||||||
Materials - 0.3% | ||||||||
International Paper Co | 1,900 | 101,517 | ||||||
Total Mutual Funds | 101,517 | |||||||
Mutual Funds - 1.2% | ||||||||
Blackrock Global Floating Rate Income Fund | 3,179 | 44,442 | ||||||
John Hancock Preferred Income Fund | 3,284 | 67,256 | ||||||
iShares Investment Grade Corp. Bonds | 640 | 75,130 | ||||||
iShares US Preferred ETF | 2,516 | 94,501 | ||||||
SPDR Barclays High Yield Bond ETF | 2,600 | 93,210 | ||||||
Total Mutual Funds | 374,539 | |||||||
Telecommunication Services - 8.2% | ||||||||
AT & T, Inc. | 29,570 | 1,054,171 | ||||||
Centurylink, Inc. | 6,900 | 113,367 | ||||||
Consolidated Communications | 9,600 | 105,216 | ||||||
Verizon Communications | 28,300 | 1,353,306 | ||||||
Total Telecommunication Services | 2,626,060 | |||||||
Utilities - 27.1% | ||||||||
Alliant Energy Corp. | 14,900 | 608,814 | ||||||
American Electric Power, Inc. | 8,240 | 565,182 | ||||||
Atmos Energy Corp. | 1,500 | 126,360 | ||||||
Centerpoint Energy, Inc. | 19,800 | 542,520 | ||||||
Consolidated Edison | 8,100 | 631,314 | ||||||
Dominion Energy, Inc. | 10,900 | 734,987 | ||||||
Duke Energy Corp. | 9,095 | 704,590 | ||||||
Entergy Corp. | 4,170 | 328,513 | ||||||
Eversource Energy | 10,481 | 617,541 | ||||||
Exelon Corp. | 6,500 | 253,565 | ||||||
Firstenergy Corp | 1,255 | 42,683 | ||||||
NextEra Energy, Inc. | 3,170 | 517,756 | ||||||
PPL Corporation | 13,945 | 394,504 | ||||||
Public Service Enterprise Group, Inc. | 12,000 | 602,880 | ||||||
Sempra Corp | 1,740 | 193,523 | ||||||
Southern Company | 14,730 | 657,842 | ||||||
WEC Energy Group, Inc. | 10,840 | 679,668 | ||||||
Xcel Energy, Inc. | 11,670 | 530,752 | ||||||
Total Utilities | 8,732,991 | |||||||
Total U.S. Common Stock (Cost $33,818,408) | $ 29,509,595 | |||||||
Cash Equivalents - 2.9% | ||||||||
Total Cash Equivalents (Cost $944,796) | $ 944,796 | |||||||
TOTAL INVESTMENT IN SECURITIES (Cost $34,476,417) | $ 32,220,327 |
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 |
1,765,936 |
1,765,936 |
||||
US Common Stock |
29,509,595 |
29,509,595 |
||||
Cash Equivalents |
944,796 |
944,796 |
||||
TOTALS |
|
|
|
|
|
$32,220,327 |
ITEM 2. | CONTROLS AND PROCEDURES. |
(a) The registrants President and Chief Financial Officer have concluded that the registrants 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 registrants 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 registrants 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 12, 2018
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 12, 2018 |
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