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: March 31, 2018

			Principal Amount or Shares	Fair Value
INVESTMENTS IN SECURITIES
U.S. Corporate Bonds - 2.7%
American Depository Receipts - 0.7%
	Deutsche Telekom, 6.000%, due July 8, 2019		250,000	252,053
		Total American Depository Receipts		252,053
Consumer Staples - 1.0%
	Yum! Brands Inc, 5.300%, due September 15, 2019		355,000	356,775
		Total Customer Staples		356,775
Information Technology - 1.0%
	Adobe Systems, Inc., 4.750%, due February 1, 2020		100,000	101,633
	Oracle Corp., 5.000%, due July 8, 2019		250,000	251,535
		Total Information Technology		353,168
		Total U.S. Corporate Bonds (Cost $957,445)		961,996
U.S. Common Stock - 94.0%
American Depository Receipts - 2.6%
	Atlantic Power Corp.		2,700	6,804
	Eaton Corp, PLC		1,400	112,784
	Enbridge Inc.		11,193	405,858
	Invesco Ltd.		6,300	121,653
	Obsidian Energy Ltd.		3,400	935
	Royal Dutch Shell, PLC		4,300	274,985
	Seadrill, Ltd.		4	33
	Wheaton Precious Metals Corp.		700	16,674
		Total American Depository Receipts		939,726
Consumer Staples - 1.3%
	Coca Cola Company		6,700	313,962
	The Kraft Heinz Company		4,900	159,985
		Total Consumer Staples		473,947
Consumer Discretionary - 1.2%
	Genuine Parts Co.		3,400	380,902
	Ryman Hospitality Properties Inc.		600	49,344
		Total Consumer Discretionary		430,246
Energy - 3.5%
	Chevron Corp.		1,800	221,724
	Diamond Offshore Drilling, Inc.		1,515	15,892
	Exxon Mobil Corp.		5,000	404,000
	Kinder Morgan, Inc.		19,919	398,579
	Williams Cos Inc.		6,784	194,836
		Total Energy		1,235,032
Financials - 26.8%
	AvalonBay Communities, Inc.		1,750	351,278
	Digital Realty Trust, Inc.		3,310	393,890
	EPR Properties		1,900	146,110
	Equity Residential PPTYS		3,000	225,960
	Essex PPTY		400	115,696
	HCP, Inc.		7,700	241,010
	Healthcare Realty Trust, Inc.		5,425	174,197
	Highwoods Properties, Inc.		1,300	60,814
	Hospitality Properties Trust		13,400	352,554
	Iron Mountain Inc.		8,100	287,226
	JPMorgan Chase & Co.		1,870	189,300
	Lamar Advertising Company		5,750	455,745
	Liberty Properties Trust		16,040	776,657
	LTC Properties, Inc.		7,330	335,714
	Mack Cali Rlty Corp.		5,600	124,320
	National Retail Properties, Inc.		1,470	81,423
	Omega Healthcare Investors, Inc.		5,831	222,453
	Prudential Financial Inc.		1,000	91,880
	Public Storage Inc.		1,000	217,780
	Realty Income Corp.		12,255	901,478
	Redwood Trust, Inc.		2,600	41,990
	RMR Group, Inc., The		274	16,709
	Sabra Health Care REIT, Inc.		2,970	57,826
	Senior Housing Properties Trust		10,400	122,512
	Simon Property Group Inc.		550	100,216
	Stag Industrial, Inc.		14,530	430,815
	T Rowe Price Group Inc.		5,300	530,636
	Tanger Factory Outlet Ctr.		10,800	226,584
	Ventas, Inc.		12,500	797,625
	Vornado Realty Trust		2,500	168,600
	Washington REIT		6,600	187,308
	Wells Fargo & Co.		9,540	460,973
	Welltower, Inc.		8,810	683,656
		Total Financials		9,570,932
Health Care - 3.4%
	Abbvie Inc.		1,000	80,590
	Amgen Inc.		2,380	452,152
	Bristol Myers Squibb		6,900	329,199
	Merck & Co Inc.		3,125	259,906
	Pfizer Inc.		2,500	106,175
		Total Healthcare		1,228,023
Industrials - 1.9%
	General Electric Co.		24,550	245,255
	Pitney Bowes, Inc.		3,000	20,610
	United Parcel Service		3,670	410,086
	Wabtec Corp.		131	9,657
		Total Industrials		685,608
Information Technology - 4.7%
	Cisco Systems, Inc.		6,250	337,438
	International Business Machines Corp.		3,870	546,057
	Paychex, Inc.		9,925	795,985
		Total Information Technology		1,679,480
Master Limited Partnerships - 7.3%
	Amerigas Partners LP		7,230	223,190
	Blackstone Group LP		11,800	412,646
	Buckeye Partners LP		6,472	220,177
	CVR Partners LP		4,760	18,850
	Energy Transfer Partners LP		15,960	245,305
	Enterprise Products Partners LP		18,600	541,260
	Linnco LLC		5,890	-
	Magellan Midstream Partners LP		7,600	460,788
	MPLX LP		2,180	71,700
	Nustar Energy LP		4,100	110,249
	Plains All American Pipeline LP		3,914	95,932
	Suburban Propane Partners LP		3,200	71,712
	Targa Resources Corp.		1,160	48,198
	TC Pipelines LP		2,300	85,928
		Total Master Limited Partnerships		2,605,936
Materials - 0.2%
	International Paper Co		1,900	87,913
		Total Mutual Funds		87,913
Mutual Funds - 2.7%
	Blackrock Global Floating Rate Income Fund		3,179	38,816
	John Hancock Preferred Income Fund		3,284	74,448
	iShares Investment Grade Corp. Bonds		640	76,198
	iShares US Preferred ETF		2,516	91,960
	iShares 1-3 Year Treasury Bond		7,200	605,664
	SPDR Barclays High Yield Bond ETF		2,600	93,522
		Total Mutual Funds		980,608
Telecommunication Services - 7.8%
	AT & T, Inc.		29,570	927,315
	Centurylink, Inc.		6,900	82,731
	Consolidated Communications		9,600	104,736
	Verizon Communications		28,110	1,662,144
		Total Telecommunication Services		2,776,927
Utilities - 30.4%
	Alliant Energy Corp.		14,900	702,237
	American Electric Power, Inc.		8,240	690,100
	Centerpoint Energy, Inc.		19,800	607,860
	Consolidated Edison		8,100	686,961
	Dominion Energy, Inc.		10,900	835,594
	Duke Energy Corp.		9,095	818,550
	Entergy Corp.		4,170	398,777
	Eversource Energy		10,481	743,627
	Exelon Corp.		6,500	325,845
	Firstenergy Corp		1,255	264,432
	NextEra Energy, Inc.		3,170	612,824
	OGE Energy Corp. Co.		7,700	332,024
	Oneok Inc. Co.		1,600	111,744
	PPL Corporation		13,945	442,614
	Public Service Enterprise Group, Inc.		12,000	712,920
	Sempra Corp		1,740	218,996
	Southern Company		14,730	761,246
	WEC Energy Group, Inc.		10,840	857,227
	Xcel Energy, Inc.		12,770	717,802
		Total Utilities		10,841,381
		Total U.S. Common Stock (Cost $31,537,171)		$         33,535,758
Cash Equivalents - 3.3%
		Total Cash Equivalents (Cost $1,166,159)		$            1,166,159
		TOTAL INVESTMENT IN SECURITIES (Cost $33,660,776)		$         35,663,912

 

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		961,996		961,996
US Common Stock	33,535,758			33,535,758
Cash Equivalents	1,166,159			1,166,159
TOTALS				$35,663,912

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 12, 2019

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, 2019

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: April 12, 2019

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: April 12, 2019