fp0007195_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: March 31, 2013

 
 
 
 
ITEM 1. SCHEDULE OF INVESTMENTS
 
SHELTON GREATER CHINA FUND
Portfolio of Investments (Expressed in U.S. Dollars) (Unaudited) / March 31, 2013
 
Security Description
  
Shares
    
Value
  
Common Stock (96.17%)
            
             
Basic Materials (1.36%)
            
Kingboard Chemical Holdings Ltd
     12,500       35,588  
Lee & Man Paper Manufacturing Ltd
     39,000       30,547  
Angang Steel Co Ltd
     36,000       19,710  
Zijin Mining Group Co Ltd
     350,000       115,425  
Total Basic Materials
             201,270  
                 
Communications (9.02%)
                
Tencent Holdings Ltd
     11,100       352,910  
China Mobile Ltd
     64,000       677,716  
Chunghwa Telecom Co Ltd
     100,000       308,335  
Total Communications
             1,338,961  
                 
Consumer, Cyclical (6.01%)
                
Great Wall Motor Co Ltd
     32,500       110,112  
Haier Electronics Group Co Ltd
     66,000       105,259  
Formosa International Hotels Corp
     16,000       180,854  
Sands China Ltd
     50,000       259,258  
SA SA International Holdings Ltd
     150,000       145,120  
Intime Department Store Group Co Ltd
     81,000       92,034  
Total Consumer, Cyclical
             892,637  
                 
Consumer, Non-Cyclical (3.54%)
                
Uni-President Enterprises Corp
     49,100       93,102  
Want Want China Holdings Ltd
     200,000       306,600  
TTY Biopharm Co Ltd
     12,000       39,327  
Sinopharm Group Co Ltd
     26,700       86,162  
Total Consumer, Non-Cyclical
             525,191  
                 
Diversified (0.24%)
                
Wharf Holdings Ltd
     4,000       35,658  
Total Diversified
             35,658  
                 
Energy (8.81%)
                
China Shenhua Energy Co Ltd
     50,000       181,641  
Shougang Fushan Resources Group Ltd
     64,000       28,527  
GCL-Poly Energy Holdings Ltd
     156,000       31,752  
CNOOC Ltd
     350,000       672,718  
China Petroleum & Chemical Corp
     100,000       117,745  
PetroChina Co Ltd
     210,000       275,399  
Total Energy
             1,307,782  
                 
Financial (37.40%)
                
                 
Banks (17.58%)
                
China Construction Bank Corp
     1,000,000       816,742  
Industrial & Commercial Bank of China Ltd
     1,100,000       770,881  
China Minsheng Banking Corp Ltd
     27,500       35,037  
BOC Hong Kong Holdings Ltd
     70,000       233,557  
Chongqing Rural Commercial Bank
     67,000       35,819  
Hang Seng Bank Ltd
     10,000       160,385  
Bank of China Ltd
     1,200,000       556,518  
              2,608,939  
 
 
 
 
SHELTON GREATER CHINA FUND
Portfolio of Investments (Expressed in U.S. Dollars) (Unaudited) / March 31, 2013
 
Diversified Financial Services (3.01%)
                
Hong Kong Exchanges and Clearing Ltd
     10,000       170,305  
China Everbright Ltd
     20,000       31,742  
Mega Financial Holding Co Ltd
     6,000       4,846  
Fubon Financial Holding Co Ltd
     167,713       239,770  
              446,663  
                 
Insurance (3.44%)
                
AIA Group Ltd
     50,000       219,000  
PICC Property & Casualty Co Ltd
     26,000       33,394  
China Life Insurance Co Ltd
     100,000       258,936  
              511,330  
                 
Real Estate (13.37%)
                
Sino-Ocean Land Holdings Ltd
     54,500       32,858  
China Resources Land Ltd
     14,000       39,137  
Kerry Properties Ltd
     30,000       133,139  
China Overseas Land & Investment Ltd
     80,000       220,546  
Hysan Development Co Ltd
     40,000       201,995  
Cheung Kong Holdings Ltd
     25,000       369,080  
Sun Hung Kai Properties Ltd
     30,000       404,249  
New World Development Co Ltd
     23,000       38,933  
Link REIT/The
     100,000       544,924  
              1,984,861  
                 
Total Financial
             5,551,793  
                 
Industrial (8.52%)
                
BBMG Corp
     29,000       23,648  
China National Building Material Co Ltd
     16,000       20,138  
Tianneng Power International Ltd
     150,000       100,289  
Hon Hai Precision Industry Co Ltd
     41,638       115,156  
China State Construction International Holdings Ltd
     500,000       684,054  
China Everbright International Ltd
     411,200       295,056  
Fosun International Ltd
     39,000       26,527  
Total Industrial
             1,264,868  
                 
Technology (15.32%)
                
Lenovo Group Ltd
     36,000       35,756  
Asustek Computer Inc
     30,000       356,659  
MediaTek Inc
     25,000       284,258  
Taiwan Semiconductor Manufacturing Co Ltd
     308,284       1,030,964  
Chipbond Technology Corp
     250,000       566,006  
Total Technology
             2,273,643  
                 
Utilities (5.95%)
                
China Resources Power Holdings Co Ltd
     142,000       425,312  
Power Assets Holdings Ltd
     30,000       283,090  
Hong Kong & China Gas Co Ltd
     60,000       175,071  
Total Utilities
             883,473  
                 
Total Common Stock (Cost $11,975,655)
             14,275,276  
 
 
 
 
 
SHELTON GREATER CHINA FUND
Portfolio of Investments (Expressed in U.S. Dollars) (Unaudited) / March 31, 2013
 
Short-Term Investments (3.51%)
                
Time Deposit (3.51%)
                
Bank of America, London, United Kingdom, 0.03%, Due 04/01/13
             520,426  
                 
Total Short-Term Investments (Cost $520,426)
             520,426  
                 
Total Investments (Cost $12,496,081) (a) (99.68%)
             14,795,702  
Other Net Assets (0.32%)
             47,520  
Net Assets (100.00%)
             14,843,222  
                 
(a) March 31, 2013, unrealized apprecation (depreciation) of securities is as follows:
                
                 
Unrealized appreciation
           $ 2,475,619  
Unrealized depreciation
             (175,998 )
Net unrealized appreciation
           $ 2,299,621  

 
 
 
 
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 March 31, 2013 using fair value hierarchy:
 
   
Level 1(b)
    
Level 2(b)
    
Level 3(b)
    
Total
  
Investments, in securities
                        
  Common stocks (a)
   $ 14,275,276     $ -     $ -     $ 14,275,276  
  Rights and warrants
     -       -       -     $ -  
  Short term securities
     520,426       -       -     $ 520,426  
Total investments in securities
   $ 14,795,702     $ -     $ -     $ 14,795,702  
 
(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 March 31, 2013.
 
 
 
 
 
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: May 15, 2013

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: May 15, 2013

By /s/ William P. Mock
William P. Mock
Treasurer (as Principal Financial Officer)
Date: May 15, 2013