fp0005831_nq.htm
 
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: 811-05617

Shelton Greater China Fund
(Exact name of registrant as specified in charter)

44 Montgomery Street, Suite 2100
San Francisco, California  94104-4708
(Address of principal executive offices)  (Zip code)

Teresa Axelson
44 Montgomery Street, Suite 2100
San Francisco, California  94104-4708
(Name and address of agent for service)

Registrant’s telephone number, including area code: (800) 955-9988

Date of fiscal year end: December 31
Date of reporting period: September 30, 2012

 
 
 
 
ITEM 1. SCHEDULE OF INVESTMENTS
 
SHELTON GREATER CHINA FUND
Portfolio of Investments (Expressed in U.S. Dollars) (Unaudited) / September 30, 2012
 
Security Description
  
Shares
    
Value
  
Common Stock (97.62%)
            
             
Basic Materials (4.32%)
            
China Bluechemical
     150,000       88,792  
Formosa Chemicals & Fibre Corp
     50,897       136,820  
Formosa Plastics
     40,271       115,125  
Jiangxi Copper
     100,000       253,287  
Zijin Mining Group
     700,000       282,562  
Total Basic Materials
             876,586  
                 
Communications (12.15%)
                
CHI Telecom Corp Ltd
     200,000       115,553  
China Mobile HK Ltd
     100,000       1,108,453  
Chunghwa Telecom Co
     100,000       320,330  
Tencent Holdings Ltd
     27,000       919,958  
Total Communications
             2,464,294  
                 
Consumer, Cyclical (1.43%)
                
Sa Sa International
     150,000       102,914  
Sands China Ltd.
     50,000       186,677  
Total Consumer, Cyclical
             289,591  
                 
Consumer, Non-Cyclical (3.51%)
                
Sinopharm Medicine
     100,000       320,478  
TTY Biopharm Co, Ltd
     12,000       48,919  
Uni-President Enterprises Corp
     49,100       87,100  
Want Want China
     200,000       255,093  
Total Consumer, Non-Cyclical
             711,590  
                 
Diversified (1.43%)
                
Hutchison Whampoa Ltd
     30,000       290,945  
Total Diversified
             290,945  
                 
Energy (8.19%)
                
China Petroleum & Chemical Corp
     100,000       93,371  
China Shenhua Energy
     50,000       194,092  
CNOOC Ltd
     350,000       717,689  
PetroCHI Company Ltd
     500,000       655,142  
Total Energy
             1,660,294  
                 
Financial (31.17%)
                
                 
Banks (11.48%)
                
Bank of China Ltd.
     1,200,000       456,536  
BOC Hong Kong Ltd.
     70,000       222,529  
China Construction
     1,000,000       693,831  
Hang Seng Bank Ltd.
     20,000       306,678  
Industrial & Commercial Bank of China
     1,100,000       649,725  
              2,329,299  
 
 
 
 
 
SHELTON GREATER CHINA FUND
Portfolio of Investments (Expressed in U.S. Dollars) (Unaudited) / September 30, 2012
 
Diversified Financial Services (2.59%)                
Chinatrust Financial     310,683        187,596   
Fubon Financial Holding Co Ltd     167,713        182,511   
Hong Kong Exchanges     10,000        151,147   
Mega Financial Holding Co Ltd     6,000        4,626   
              525,880   
                 
Insurance (6.04%)
                
AIA Group Ltd.
     150,000       559,063  
China Life Insurance Co
     100,000       288,881  
Ping An Insurance
     50,000       377,867  
              1,225,811  
                 
Real Estate (11.06%)
                
Cheung Kong Holdings
     25,000       366,583  
China Overseas Land & Investment Ltd
     80,000       203,455  
Hang Lung Properties
     80,000       273,406  
Hysan Development Co
     40,000       182,098  
Kerry Properties Ltd
     60,000       303,325  
Sun Hung Kai Properties Ltd
     30,000       439,512  
The Link
     100,000       473,946  
              2,242,325  
                 
Total Financial
             6,323,315  
                 
Industrial (17.87%)
                
AAC Technologies Holdings Inc
     150,000       541,652  
Anhui Conch Cement
     70,000       218,015  
China Everbright
     900,000       475,880  
China State Construction International Holdings Ltd
     500,000       588,080  
Delta Electronics In
     150,000       580,790  
HON HAI Precision
     192,439       603,967  
Phison Electronics
     30,000       242,039  
Shin Zu Shing Company Ltd
     50,000       180,804  
Simplo Technology Co
     2,000       11,974  
Taiwan Surface Mounting Technology Co Ltd
     50,500       89,928  
Tianneng Power International
     150,000       91,114  
Total Industrial
             3,624,243  
                 
Technology (13.63%)
                
Asustek Computer Inc
     30,000       325,959  
CHIPBOND Tech. Corp.
     250,000       396,575  
MediaTek Inc
     50,000       527,914  
Powertech Technology
     150,000       288,093  
TWD Semiconductor
     400,284       1,226,244  
Total Technology
             2,764,785  
                 
Utilities (3.92%)
                
China Resources Power
     100,000       218,982  
CLP Holdings
     20,000       169,976  
HK & China Gas Co
     60,000       152,127  
Power Assets Holdings Ltd
     30,000       254,770  
Total Utilities
             795,855  
                 
Total Common Stock (Cost $17,842,453)
             19,801,498  
                 
Total Investments (Cost $18,623,925) (a) (97.62%)
             19,801,498  
Other Net Assets (2.38%)
             481,973  
Net Assets (100.00%)
             20,283,471  
 
 
 
 
SHELTON GREATER CHINA FUND
Portfolio of Investments (Expressed in U.S. Dollars) (Unaudited) / September 30, 2012
 
   
Contracts
    
Unrealized
Appreciation
  
Forward Foreign Currency Exchange Contract Short (0.15%)
                
USD, Brown Brothers Harriman & Co., settlement date 10/04/2012 (cost $30,056; value $30,056)
  
HKD 223,061
     $ -  
                 
Total Forward Foreign Currency Exchange Contract Short (Cost $30,056; Value $30,056)
             -  
                 
(a) At September 30, 2012, unrealized apprecation (depreciation) of securities is as follows:
                
                 
Unrealized appreciation
           $ 2,325,564  
Unrealized depreciation
             (366,345 )
Net unrealized appreciation
           $ 1,959,219  
 
 
 
 
 
Fair Value Measurements -
 
The Fund utilizes various methods to measure the fair value of most of its investments on a recurring basis. U.S. GAAP establishes a hierarchy that prioritizes inputs to valuation methods. The three levels of inputs are:

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 speeds, 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 Fund’s own assumptions about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available.
 
The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3.

The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety, is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

The following table summarizes the valuation of the Trust's securities at September 30, 2012 using fair value hierarchy:
 
   
Level 1(b)
    
Level 2(b)
    
Level 3(b)
    
Total
  
Investments, in securities
                        
  Common stocks (a)
   $ 19,801,495     $ -     $ -     $ 19,801,495  
  Rights and warrants
     -       -       -     $ -  
  Short term securities
     877,192       -       -     $ 877,192  
Total investments in securities
   $ 20,678,688     $ -     $ -     $ 20,678,688  
 
(a)
For a detailed breakout of common stocks by major industry classification, please refer to the Portfolio of Investments.
 
(b)
There were no transfers in or out of Level 1, Level 2 and Level 3 during the period ended September 30, 2012.
 
 
 
 
 
ITEM 2. CONTROLS AND PROCEDURES.

(a) Based on an evaluation of the disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940), the disclosure controls and procedures as of a date within 90 days prior to the filing date of this Form N-Q (the "Report"), are reasonably designed to ensure that information required to be disclosed by the Registrant in the Report is recorded, processed, summarized and reported by the filing date, including ensuring that information required to be disclosed in the Report is accumulated and communicated to the Registrant's management, including the Registrant's principal executive officer and principal financial officer. Based on such evaluation, the Registrant's Principal Executive Officer and Principal Financial Officer have determined that the disclosure controls and procedures are effective.

(b) There were no significant changes in the Registrant's internal controls over financial reporting or in other factors that could significantly affect these controls subsequent to the date of their evaluation, in connection with the preparations of this Quarterly Schedule of Portfolio of Investments.

ITEM 3. EXHIBITS.

Separate certifications for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2(a)) is attached hereto as Exhibit 99.CERT.

 
 
 
 
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.

Shelton Greater China Fund

By /s/ Stephen C. Rogers
Stephen C. Rogers,
President (as Principal Executive Officer)
Date: November 14, 2012
 
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/ Stephen C. Rogers
Stephen C. Rogers,
President (as Principal Executive Officer)
Date: November 14, 2012
 
By /s/ William P. Mock
William P. Mock
Treasurer (as Principal Financial Officer)
Date: November 14, 2012