fp0010575_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, 2014
 
 
 
 
 
ITEM 1. SCHEDULE OF INVESTMENTS
 
SHELTON GREATER CHINA FUND
Portfolio of Investments (Expressed in U.S. Dollars) (Unaudited) / March 31, 2014
 
Security Description
  
Shares
    
Value
  
Common Stock (100.50%)
            
             
Basic Materials (1.76%)
            
Chemicals (0.73%)
            
Kingboard Chemical Holdings Ltd
     15,000       29,276  
Sinopec Shanghai Petrochemical Co Ltd
     186,000       47,956  
              77,232  
                 
Forest Products & Paper (0.69%)
                
Lee & Man Paper Manufacturing Ltd
     39,000       24,233  
Nine Dragons Paper Holdings Ltd
     63,000       49,054  
              73,287  
                 
Iron/Steel (0.11%)
                
Angang Steel Co Ltd
     18,000       11,092  
                 
Mining (0.23%)
                
Zijin Mining Group Co Ltd
     116,000       24,674  
                 
Total Basic Materials
             186,285  
                 
Communications (12.67%)
                
Internet (6.13%)
                
Tencent Holdings Ltd
     9,300       646,807  
                 
Telecommunications (6.54%)
                
China Mobile Ltd
     41,900       383,507  
Chunghwa Telecom Co Ltd
     100,000       307,344  
              690,851  
                 
Total Communications
             1,337,658  
                 
Consumer, Cyclical (10.69%)
                
Auto Manufacturers (1.54%)
                
Great Wall Motor Co Ltd
     32,500       162,980  
                 
Home Furnishings (2.90%)
                
Haier Electronics Group Co Ltd
     113,000       305,913  
                 
Lodging (5.27%)
                
Formosa International Hotels Corp
     8,800       104,202  
Galaxy Entertainment Group Ltd
     9,000       78,257  
Sands China Ltd
     50,000       373,529  
              555,988  
 
 
 
 
 
SHELTON GREATER CHINA FUND
Portfolio of Investments (Expressed in U.S. Dollars) (Unaudited) / March 31, 2014 (continued)
 
Retail (0.98%)
                
Intime Retail Group Co Ltd
     41,000       44,134  
SA SA International Holdings Ltd
     74,000       59,337  
              103,471  
                 
Total Consumer, Cyclical
             1,128,352  
                 
Consumer, Non-Cyclical (7.10%)
                
Food (4.73%)
                
China Mengniu Dairy Co Ltd
     22,000       110,183  
Uni-President Enterprises Corp
     52,046       90,479  
Want Want China Holdings Ltd
     200,000       298,565  
              499,227  
                 
Pharmaceuticals (2.37%)
                
Sihuan Pharmaceutical Holdings Group Ltd
     142,000       171,159  
Sinopharm Group Co Ltd
     13,500       36,982  
TTY Biopharm Co Ltd
     13,068       42,393  
              250,534  
                 
Total Consumer, Non-Cyclical
             749,761  
                 
Energy (4.68%)
                
Coal (0.53%)
                
China Shenhua Energy Co Ltd
     12,500       36,096  
Shougang Fushan Resources Group Ltd
     64,000       19,471  
              55,567  
                 
Energy-Alternate Sources (1.03%)
                
China Longyuan Power Group Corp
     52,000       52,355  
GCL-Poly Energy Holdings Ltd
     156,000       56,310  
              108,665  
                 
Oil & Gas (3.12%)
                
China Petroleum & Chemical Corp
     78,000       69,784  
CNOOC Ltd
     122,000       183,383  
PetroChina Co Ltd
     70,000       76,253  
              329,420  
                 
Total Energy
             493,652  
                 
Financial (34.54%)
                
Banks (16.48%)
                
Bank of China Ltd
     1,009,000       447,456  
BOC Hong Kong Holdings Ltd
     70,000       199,430  
China Construction Bank Corp
     639,000       447,302  
China Minsheng Banking Corp Ltd
     27,500       27,581  
Chongqing Rural Commercial Bank
     67,000       29,367  
Hang Seng Bank Ltd
     10,000       159,209  
Industrial & Commercial Bank of China Ltd
     700,000       430,444  
              1,740,789  
 
 
 
 
 
SHELTON GREATER CHINA FUND
Portfolio of Investments (Expressed in U.S. Dollars) (Unaudited) / March 31, 2014 (continued)
 
Diversified Financial Services (3.40%)
                
China Everbright Ltd
     20,000       25,525  
Fubon Financial Holding Co Ltd
     167,713       227,197  
Hong Kong Exchanges and Clearing Ltd
     6,700       101,574  
Mega Financial Holding Co Ltd
     6,477       5,014  
              359,310  
                 
Insurance (2.62%)
                
AIA Group Ltd
     50,000       237,202  
PICC Property & Casualty Co Ltd
     28,860       39,511  
              276,713  
                 
Real Estate (12.04%)
                
Cheung Kong Holdings Ltd
     25,000       414,459  
China Overseas Land & Investment Ltd
     80,000       207,294  
Hysan Development Co Ltd
     40,000       174,034  
Kerry Properties Ltd
     9,000       29,934  
Link REIT/The
     51,000       250,822  
New World Development Co Ltd
     23,000       23,127  
Sun Hung Kai Properties Ltd
     14,000       171,456  
              1,271,126  
                 
Total Financial
             3,647,938  
                 
Industrial (11.28%)
                
Building Materials (0.18%)
                
BBMG Corp
     14,500       11,290  
China National Building Material Co Ltd
     8,000       8,024  
              19,314  
                 
Electrical Components & Equipment (0.29%)
                
Tianneng Power International Ltd
     90,000       30,398  
                 
Electronics (0.46%)
                
Hon Hai Precision Industry Co Ltd
     17,201       48,691  
                 
Engineering & Construction (4.49%)
                
China State Construction International Holdings Ltd
     280,000       474,301  
                 
Environmental Control (5.34%)
                
China Everbright International Ltd
     411,200       562,961  
                 
Miscellaneous Manufacturing (0.46%)
                
Fosun International Ltd
     39,000       49,020  
                 
Transportation (0.06%)
                
Kerry Logistics Network Ltd
     4,500       6,602  
                 
Total Industrial
             1,191,287  
 
 
 
 
 
SHELTON GREATER CHINA FUND
Portfolio of Investments (Expressed in U.S. Dollars) (Unaudited) / March 31, 2014 (continued)
 
Technology (12.48%)
                
Computers (2.25%)
                
Asustek Computer Inc
     20,000       197,789  
Lenovo Group Ltd
     36,000       39,773  
              237,562  
                 
Semiconductors (10.23%)
                
Chipbond Technology Corp
     116,000       204,704  
MediaTek Inc
     25,000       368,600  
Taiwan Semiconductor Manufacturing Co Ltd
     130,284       506,401  
              1,079,705  
                 
Total Technology
             1,317,267  
                 
Utilities (5.30%)
                
Electric (4.62%)
                
China Resources Power Holdings Co Ltd
     94,000       244,782  
HK Electric Investments and HK Electric Investments Ltd
     4,375       2,831  
Huaneng Power International Inc
     92,000       88,002  
Power Assets Holdings Ltd
     17,500       151,716  
              487,331  
                 
Gas (0.68%)
                
Hong Kong & China Gas Co Ltd
     33,000       71,981  
                 
Total Utilities
             559,312  
                 
Total Common Stock (Cost $8,575,945)
             10,611,512  
                 
Rights/Warrants (0.01%)
                
New World Development Co Ltd Rights
     7,666       1,581  
Total Rights/Warrants (Cost $2,380)
             1,581  
                 
Total Investments (Cost $8,578,325) (a) (100.51%)
             10,613,093  
Liabilities in Excess of Other Assets (-0.51%)
             (54,146 )
Net Assets (100.00%)
             10,558,947  
 
(a) March 31, 2014, unrealized apprecation (depreciation) of securities is as follows:
      
       
Unrealized appreciation
   $ 2,406,892  
Unrealized depreciation
     (372,124 )
Net unrealized appreciation
   $ 2,034,768  

 
 
 
 
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, 2014 using fair value hierarchy:
 
   
Level 1(b)
    
Level 2(b)
    
Level 3(b)
    
Total
  
Investments, in securities
                        
  Common stocks (a)
   $ 10,611,512     $ -     $ -     $ 10,611,512  
  Rights and warrants
     -       -       1,581     $ 1,581  
  Short term securities
     -       -       -     $ -  
Total investments in securities
   $ 10,611,512     $ -     $ 1,581     $ 10,613,093  

(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, 2014.
 
 
 
 
 
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 21, 2014

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 21, 2014

By /s/ William P. Mock
William P. Mock
Treasurer (as Principal Financial Officer)
Date: May 21, 2014