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

 

SCM Trust

(Exact name of registrant as specified in charter)

 

1050 17th Street, Suite 1710

Denver, Colorado 80265-2077

(Address of principal executive offices)     (Zip code)

 

Steve Rogers

1050 17th Street, Suite 1710

Denver, Colorado 80265-2077

(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, 2017

 

SHELTON GREATER CHINA FUND

Portfolio of Investments (Expressed in U.S. Dollars) (Unaudited) / September 30, 2017

 

Security Description	Shares			Value
Common Stock (101.81%)
Basic Materials (8.27%)
Kingboard Chemical Holdings Lt		74,000			391,757
Nine Dragons Paper Holdings Lt		80,000			157,323
Sinopec Shanghai Petrochemical		186,000			110,733
Zijin Mining Group Co Ltd		116,000			39,802
Total Basic Materials					699,615
Communications (16.62%)
China Mobile Ltd		20,900			211,791
Chunghwa Telecom Co Ltd		66,000			227,444
PCCW Ltd		59,000			31,952
Tencent Holdings Ltd		21,700			934,044
Total Communications					1,405,231
Consumer, Cyclical (6.55%)
ANTA Sports Products Ltd		27,000			113,556
BAIC Motor Corp Ltd		80,000			75,896
Galaxy Entertainment Group Ltd		4,000			28,166
Great Wall Motor Co Ltd		33,000			40,560
Haier Electronics Group Co Ltd		75,000			182,826
Sands China Ltd		9,200			47,880
Wynn Macau Ltd		24,000			64,681
Total Consumer, Cyclical					553,565
Consumer, Non-Cyclical (4.18%)
China Mengniu Dairy Co Ltd		32,000			89,518
Sihuan Pharmaceutical Holdings		284,000			103,263
TTY Biopharm Co Ltd		13,943			40,830
Uni-President Enterprises Corp		57,374			120,144
Total Consumer, Non-Cyclical					353,755
Diversified (1.97%)
CK Hutchison Holdings Ltd		13,000			166,189
Total Diversified					166,189
Energy (6.44%)
China Everbright International		204,200			256,208
China Longyuan Power Group Cor		152,000			113,260
China Petroleum & Chemical Cor		78,000			58,420
CNOOC Ltd		56,000			72,270
PetroChina Co Ltd		70,000			44,362
Total Energy					544,520
Financial (35.96%)
Banks (19.51%)
Bank of China Ltd		431,000			212,446
BOC Hong Kong Holdings Ltd		70,000			340,110
China CITIC Bank Corp Ltd		135,000			85,729
China Construction Bank Corp		375,000			311,112
Chongqing Rural Commercial Ban		191,000			121,045
Hang Seng Bank Ltd		10,000			243,768
Industrial & Commercial Bank o		451,000			334,900
					1,649,110
Diversified Financial Services (3.17%)
China Everbright Ltd		20,000			45,988
Fubon Financial Holding Co Ltd		54,713			85,342
Hong Kong Exchanges & Clearing		5,100			137,120
					268,450
Insurance (6.85%)
AIA Group Ltd		38,400			283,181
China Taiping Insurance Holdin		55,764			149,214
Fosun International Ltd		43,368			91,392
PICC Property & Casualty Co Lt		31,457			55,498
					579,285
Real Estate (6.43%)
CK Asset Holdings Ltd		13,000			107,602
Hysan Development Co Ltd		31,000			145,858
New World Development Co Ltd		30,666			44,051
Sun Hung Kai Properties Ltd		15,166			246,401
					543,912
Total Financial					3,040,757
Industrial (11.36%)
China Communications Services		106,000			54,556
China State Construction Inter		180,000			262,256
CTCI Corp		37,000			59,422
Hon Hai Precision Industry Co		22,250			77,043
Largan Precision Co Ltd		1,000			175,768
Sunny Optical Technology Group		12,000			190,815
Tianneng Power International L		136,000			140,515
Total Industrial					960,375
Technology (6.06%)
Asustek Computer Inc		6,000			49,367
Chipbond Technology Corp		58,000			96,781
Taiwan Semiconductor Manufactu		51,284			366,145
Total Technology					512,293
Utilities (4.40%)
China Resources Power Holdings		72,000			129,976
Hong Kong & China Gas Co Ltd		48,315			90,807
Power Assets Holdings Ltd		17,500			151,571
Total Utilities					372,354
Total Common Stock (Cost $5,607,457)					8,608,654
Rights (0.00%)
CHINA ST CON INT'L - RTS*		22,500			144
Total Rights (Cost $200)					144
Total Investments (Cost $5,607,657) (a) (101.81%)					8,608,798
Liabilities in Excess of Other Assets (-1.81%)					(152,821	)
Net Assets (100.00%)					8,455,977

 

*

Non-income producing security.

 

(a)

Aggregate cost for federal income tax purpose is $5,847,358

 

At September 30, 2017, unrealized appreciation (depreciation) of securities for federal income tax purposes is as follows:

 

Unrealized appreciation	$	2,889,371
Unrealized depreciation		(127,930	)
Net unrealized appreciation	$	2,761,440

 

Because tax adjustments are calculated annually, the above tax figures reflect the tax adjustments outstanding at the Fund's previous fiscal year end. For the previous fiscal year’s federal income tax information, please refer to the Notes to Financial Statements section in the Fund’s most recent semi-annual and annual reports.

 

SHELTON BDC INCOME FUND

Portfolio of Investments (Expressed in U.S. Dollars) (Unaudited) / September 30, 2017

 

Security Description	Shares			Value
Common Stock (84.26%)
Financial (84.26%)
Diversified Financial Services (7.10%)
NewStar Financial Inc		100,410			1,178,813
					1,178,813
Investment Company (73.59%)
Alcentra Capital Corp		58,286			624,243
Apollo Investment Corp		119,000			727,090
Ares Capital Corp		171,641			2,813,196
BlackRock Capital Investment C		60,000			450,000
Goldman Sachs BDC Inc		22,000			502,040
Harvest Capital Credit Corp		35,910			479,758
New Mountain Finance Corp		26,800			381,900
Oaktree Strategic Income Corp*		66,263			583,114
PennantPark Floating Rate Capi		69,000			999,120
PennantPark Investment Corp		31,000			232,810
Solar Capital Ltd		71,169			1,540,097
TCP Capital Corp		62,500			1,030,625
TPG Specialty Lending Inc		58,300			1,221,968
TriplePoint Venture Growth BDC		47,703			639,220
					12,225,181
Private Equity (3.57%)
Hercules Capital Inc		46,000			593,401
					593,401
Total Financial					13,997,395
Total Common Stock (Cost $13,447,226)					13,997,395
Preferred Stock (3.93%)
SARATOGA INVESTMENT CORP*		25,000			653,625
Total Preferred Stock (Cost $625,000)					653,625
Convertible Bonds (3.15%)		Par Value
TSLX 4 1/2 08/01/22		500,000			522,500
Total Convertible Bonds (Cost $500,000)					522,500
Total Investments (Cost $14,572,226) (a) (91.34%)					15,173,520
Other Net Assets (8.66%)					1,438,693
Net Assets (100.00%)					16,612,213

 

*

Non-income producing security.

 

(a)

Aggregate cost for federal income tax purpose is $15,007,849

 

At September 30, 2017, unrealized appreciation (depreciation) of securities for federal income tax purposes is as follows:

 

Unrealized appreciation	$	330,897
Unrealized depreciation		(165,226	)
Net unrealized appreciation	$	165,671

 

Because tax adjustments are calculated annually, the above tax figures reflect the tax adjustments outstanding at the Fund's previous fiscal year end. For the previous fiscal year’s federal income tax information, please refer to the Notes to Financial Statements section in the Fund’s most recent semi-annual and annual reports.

 

SHELTON REAL ESTATE INCOME FUND

Portfolio of Investments (Expressed in U.S. Dollars) (Unaudited) / September 30, 2017

 

Security Description	Shares			Value
Common Stock (54.52%)
Consumer, Cyclical (0.21%)
Safestore Holdings PLC		4,000			23,436
Total Consumer, Cyclical					23,436
Financial (54.31%)
REITS- Diversified (1.67%)
Mitsui Fudosan Co Ltd		2,000			43,353
Gecina SA		275			44,604
ICADE		325			28,997
Lexington Realty Trust		6,500			66,430
					183,384
REITS- Health Care (0.25%)
Healthcare Trust of America In		906			26,999
					26,999
REIT- Industrial (8.41%)
DCT Industrial Trust Inc		940			54,445
Duke Realty Corp		18,350			528,847
Nippon Prologis REIT Inc		3			6,319
Prologis Inc		3,900			247,494
Rexford Industrial Realty Inc		3,070			87,863
					924,968
REIT-Mortgage (10.38%)
Apollo Commercial Real Estate		22,062			399,543
Blackstone Mortgage Trust Inc		13,864			430,061
Starwood Property Trust Inc		14,356			311,812
					1,141,416
REIT-Office (4.02%)
alstria office REIT-AG		800			11,430
Boston Properties Inc		893			109,732
Kilroy Realty Corp		1,970			140,106
Mack-Cali Realty Corp		3,600			85,356
Nippon Building Fund Inc		2			9,968
SL Green Realty Corp		840			85,109
					441,701
REIT-Operating Companies (1.90%)
Citycon OYJ		7,500			19,737
Deutsche EuroShop AG		275			10,316
LEG Immobilien AG		350			35,415
TLG Immobilien AG		1,600			36,904
Vonovia SE		2,500			106,398
					208,770
REIT-Residential (5.64%)
American Homes 4 Rent		2,400			52,104
Apartment Investment & Managem		1,175			51,536
AvalonBay Communities Inc		633			112,940
Equity Residential		5,340			352,066
UNITE Group PLC/The		5,570			51,377
					620,023
REIT-Retail (9.03%)
Brixmor Property Group Inc		12,500			235,000
DDR Corp		6,108			55,949
Eurocommercial Properties NV		275			11,762
GGP Inc		7,840			162,837
Klepierre SA		1,362			53,473
Retail Properties of America I		9,000			118,170
Scentre Group		12,250			37,775
Simon Property Group Inc		1,175			189,187
Unibail-Rodamco SE		430			104,592
Westfield Corp		4,100			25,222
					993,967
REIT-Specialized (13.01%)
American Tower Corp		1,400			191,352
Crown Castle International Cor		1,800			179,964
CubeSmart		5,100			132,396
CyrusOne Inc		3,800			223,934
Digital Realty Trust Inc		1,375			162,704
EPR Properties		2,246			156,636
QTS Realty Trust Inc		3,000			157,080
Weyerhaeuser Co		6,700			228,001
					1,432,067
Total Financial					5,973,295
Total Common Stock (Cost $5,770,911)					5,996,731
Preferred Stock (34.37%)
Financial (34.37%)
REITS- Diversified (4.74%)
Colony NorthStar Inc 8.875%		20,021			507,132
PS Business Parks Inc 5.75%		567			14,259
					521,391
REITS- Hotel & Resort (5.99%)
Summit Hotel Properties Inc 7.875%		25,664			658,282
					658,282
REIT- Industrial (1.00%)
STAG Industrial Inc 6.625%		4,280			110,167
					110,167
REIT-Mortgage (1.80%)
ARMOUR Residential REIT Inc 5.75%		7,900			197,500
					197,500
REIT-Retail (20.63%)
CBL & Associates Properties 6.625%		28,054			689,287
Cedar Realty Trust Inc 7.25%		7,483			189,169
DDR Corp 6.25%		22,250			562,925
GGP Inc 6.375%		27,000			693,360
Kimco Realty Corp 6%		5,306			134,507
					2,269,248
REIT-Specialized (0.21%)
Digital Realty Trust Inc 5.875%		800			20,128
EPR Properties 6.625%		100			2,549
					22,677
Total Financial					3,779,265
Total Preferred Stock (Cost $3,387,633)					3,779,265
Bonds & Notes (2.34%)		Par Value
SBRA 5 1/2 02/01/21		250,000			257,216
Total Bonds & Notes (Cost $249,298)					257,216
Total Investments (Cost $9,407,842) (a) (91.23%)					10,033,212
Other Net Assets (8.77%)					963,910
Net Assets (100.00%)					10,997,122

 

*

Non-income producing security.

 

(a)

Aggregate cost for federal income tax purpose is $9,437,280

 

At September 30, 2017, unrealized appreciation (depreciation) of securities for federal income tax purposes is as follows:

 

Unrealized appreciation	$	907,149
Unrealized depreciation		(311,217	)
Net unrealized appreciation	$	595,932

 

Because tax adjustments are calculated annually, the above tax figures reflect the tax adjustments outstanding at the Fund's previous fiscal year end. For the previous fiscal year’s federal income tax information, please refer to the Notes to Financial Statements section in the Fund’s most recent semi-annual and annual reports.

 

Fair Value Measurements -

The Funds utilize 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, 2017 using fair value hierarchy:

 

		Level 1(a)				Level 2(a)				Level 3(a)				Total
Fund		Investments, in securities (b)				Investments, in securities (c)				Investments, in securities
Greater China Fund		$	8,608,654							$	144			$	8,608,798
BDC Income Fund		$	14,651,020				522,500				-			$	15,173,520
Real Estate Income Fund		$	9,775,996				257,216				-			$	10,033,212
Total investments in securities		$	33,035,670			$	779,716			$	144			$	33,815,530

 

(a)

It is the Fund's policy to recognize transfers between levels on the last day of the fiscal reporting period.

(b)

For a detailed break-out of common stocks by major industry classification, please refer to the Portfolio of Investments.

(c)

All fixed income securities held in the Funds are Level 2 securities. For a detailed break-out of fixed income securities by type, please refer to the Portfolio of Investments.

 

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.

 

SCM Trust

 

By /s/ Stephen C. Rogers

Stephen C. Rogers,

Chairman

Date: November 29, 2017

 

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,

Chairman

Date: November 29, 2017

 

By /s/ William P. Mock

William P. Mock

Treasurer (as Principal Financial Officer)

Date: November 29, 2017