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: March 31, 2018

 

 

 

SHELTON GREATER CHINA FUND        
Portfolio of Investments (Expressed in U.S. Dollars) (Unaudited) / March 31, 2018    
         
Security Description  Shares   Value 
Common Stock (99.53%)        
         
Basic Materials (4.15%)        
Kingboard Chemical Holdings Ltd   29,000    132,468 
Nine Dragons Paper Holdings Ltd   80,000    119,669 
Sinopec Shanghai Petrochemical   186,000    113,046 
Total Basic Materials        365,183 
           
Communications (22.29%)          
Alibaba Group Holding Ltd   2,255    413,883 
China Mobile Ltd   20,900    191,603 
Chunghwa Telecom Co Ltd   36,000    137,668 
Tencent Holdings Ltd   21,700    1,132,515 
YY Inc   800    84,160 
Total Communications        1,959,829 
           
Consumer, Cyclical (7.71%)          
ANTA Sports Products Ltd   27,000    136,233 
Galaxy Entertainment Group Ltd   18,000    163,411 
Great Wall Motor Co Ltd   111,000    111,307 
Haier Electronics Group Co Ltd   75,000    267,096 
Total Consumer, Cyclical        678,047 
           
Consumer, Non-Cyclical (3.77%)          
China Mengniu Dairy Co Ltd   32,000    109,680 
New Oriental Education & Technologies   1,000    87,650 
Uni-President Enterprises Corp   57,374    134,398 
Total Consumer, Non-Cyclical        331,728 
           
Diversified (1.77%)          
CK Hutchison Holdings Ltd   13,000    155,537 
Total Diversified        155,537 
           
Energy (3.01%)          
China Everbright International   32,000    44,850 
CNOOC Ltd   56,000    82,484 
PetroChina Co Ltd   200,000    137,355 
Total Energy        264,689 
           
Financial (42.02%)          
Banks (21.26%)          
Bank of China Ltd   431,000    231,747 
BOC Hong Kong Holdings Ltd   70,000    340,711 
China CITIC Bank Corp Ltd   135,000    92,198 
China Construction Bank Corp   375,000    385,115 
Chongqing Rural Commercial Bank   191,000    146,262 
HSBC Holdings PLC   30,400    286,635 
Industrial & Commercial Bank of China Ltd   451,000    386,737 
         1,869,405 
           
Diversified Financial Services (3.43%)          
China Everbright Ltd   20,000    41,894 
Fubon Financial Holding Co Ltd   54,713    94,012 
Hong Kong Exchanges & Clearing   5,100    165,835 
         301,741 
           
Insurance (11.48%)          
AIA Group Ltd   50,400    426,406 
China Taiping Insurance Holdings   55,764    184,381 
Fosun International Ltd   43,368    93,938 
Ping An Insurance Group Co of China Ltd   30,000    305,034 
         1,009,759 
           
Real Estate (5.85%)          
CK Asset Holdings Ltd   13,000    109,075 
Hysan Development Co Ltd   31,000    163,921 
New World Development Co Ltd   949    1,340 
Sun Hung Kai Properties Ltd   15,166    239,617 
         513,953 
           
Total Financial        3,694,858 
           
Industrial (5.48%)          
China Communications Services   202,000    120,711 
China State Construction International Holdings Ltd   202,500    247,181 
Largan Precision Co Ltd   1,000    113,695 
Total Industrial        481,587 
           
Technology (6.50%)          
Taiwan Semiconductor Manufacturing   68,284    571,434 
Total Technology        571,434 
           
Utilities (2.83%)          
China Longyuan Power Group Corp   152,000    116,592 
China Resources Power Holdings   72,000    131,372 
Total Utilities        247,964 
           
Total Common Stock (Cost $5,978,323)        8,750,856 
           
Preferred Stock (0.06%)          
Fubon Financial Holding Co Preferred        5,196 
Total Preferred Stock (Cost $5,177)        5,196 
           
Total Investments (Cost $5,983,500) (a) (99.59%)        8,756,052 
Other Net Assets (0.41%)        36,000 
Net Assets (100.00%)        8,792,052 

 

*Non-income producing security.

 

(a)Aggregate cost for federal income tax purpose is $6,336,678

                 

At March 31, 2018, unrealized appreciation (depreciation) of securities for federal income tax purposes is as follows:          
           
Unrealized appreciation       $2,554,651 
Unrealized depreciation        (135,277)
Net unrealized appreciation       $2,419,374 

 

 

SHELTON BDC INCOME FUND        
Portfolio of Investments (Expressed in U.S. Dollars) (Unaudited) / March 31, 2018    
         
Security Description  Shares   Value 
Common Stock (95.48%)        
         
Financial (95.48%)        
Diversified Financial Services (0.37%)        
NewStar Financial Inc   100,410    49,402 
         49,402 
           
Investment Company (85.06%)          
Apollo Investment Corp   119,000    621,180 
Ares Capital Corp   143,741    2,281,170 
BlackRock Capital Investment Corp   36,000    217,080 
Goldman Sachs BDC Inc   55,800    1,067,454 
Harvest Capital Credit Corp   35,910    368,437 
Main Street Capital Corp   3,000    110,700 
New Mountain Finance Corp   26,800    352,420 
Oaktree Strategic Income Corp   66,263    522,815 
PennantPark Floating Rate Capital Ltd   69,000    903,210 
PennantPark Investment Corp   31,000    207,080 
Solar Capital Ltd   92,169    1,871,952 
TCP Capital Corp   62,500    888,750 
TPG Specialty Lending Inc   58,300    1,041,238 
TriplePoint Venture Growth BDC   84,703    1,012,201 
         11,465,687 
           
Private Equity (10.05%)          
Hercules Capital Inc   111,900    1,353,990 
         1,353,990 
           
Total Financial        12,869,079 
           
Total Common Stock (Cost $14,009,822)        12,869,079 
           
Preferred Stock (4.22%)          
           
Financial (4.22%)          
Saratoga Investment Corp*   22,011    568,984 
Total Financial        568,984 
           
Total Preferred Stock (Cost $550,275)        568,984 
           
Total Investments (Cost $14,560,097) (a) (99.70%)        13,438,063 
Other Net Assets (0.30%)        40,184 
Net Assets (100.00%)        13,478,247 

 

*Non-income producing security.

 

(a)Aggregate cost for federal income tax purpose is $14,603,874

 

At March 31, 2018, unrealized appreciation (depreciation) of securities for federal income tax purposes is as follows:

                 

Unrealized appreciation       $(1,015)
Unrealized depreciation        (1,164,796)
Net unrealized depreciation       $(1,165,811)

 

 

SHELTON REAL ESTATE INCOME FUND                
Portfolio of Investments (Expressed in U.S. Dollars) (Unaudited) / March 31, 2018            
                 
Security Description  Shares           Value 
Common Stock (74.11%)                
                 
Financial (74.11%)                
REITS- Diversified (1.75%)                
Liberty Property Trust   3,400              135,082 
                   135,082 
                     
REITS- Health Care (3.30%)                    
Healthcare Trust of America Inc   6,706              177,374 
Physicians Realty Trust   5,000              77,850 
                   255,224 
REIT- Industrial (8.32%)                    
DCT Industrial Trust Inc   940              52,960 
Duke Realty Corp   12,050              319,084 
Prologis Inc   2,900              182,671 
Rexford Industrial Realty Inc   3,070              88,385 
                   643,100 
                     
REIT-Mortgage (16.98%)                    
Apollo Commercial Real Estate   23,662              425,443 
Blackstone Mortgage Trust Inc   14,489              455,244 
Starwood Property Trust Inc   20,606              431,696 
                   1,312,383 
                     
REIT-Office (7.23%)                    
Boston Properties Inc   743              91,552 
Douglas Emmett Inc   2,400              88,224 
Hudson Pacific Properties Inc   3,000              97,590 
Kilroy Realty Corp   1,970              139,791 
Mack-Cali Realty Corp   3,600              60,156 
SL Green Realty Corp   840              81,337 
                   558,650 
                     
                     
REIT-Residential (11.58%)                    
American Homes 4 Rent   2,378              47,750 
Apartment Investment & Management   2,375              96,781 
AvalonBay Communities Inc   2,183              359,016 
Equity Residential   1,540              94,895 
Essex Property Trust Inc   400              96,272 
Sun Communities Inc   2,200              201,014 
                   895,728 
                     
REIT-Retail (7.47%)                    
Brixmor Property Group Inc   12,500              190,625 
DDR Corp   6,108              44,772 
GGP Inc   7,840              160,406 
Simon Property Group Inc   1,175              181,361 
                   577,164 
                     
REIT-Specialized (17.48%)                    
American Tower Corp   1,400              203,476 
Crown Castle International Corp   1,800              197,298 
CubeSmart   3,600              101,520 
CyrusOne Inc   2,300              117,783 
Digital Realty Trust Inc   1,415              149,113 
EPR Properties   2,246              124,428 
Equinix Inc   150              62,721 
QTS Realty Trust Inc   6,000              217,320 
Weyerhaeuser Co   5,100              178,500 
                   1,352,159 
                     
Total Financial                  5,729,490 
                     
Total Common Stock (Cost $5,814,309)                  5,729,490 
                     
Preferred Stock (21.37%)                    
                     
Financial (21.37%)                    
REITS- Diversified (0.18%)                    
PS Business Parks Inc 5.750%   567              14,028 
                   14,028 
REIT- Industrial (1.39%)                    
STAG Industrial Inc 6.625%   4,280              107,471 
                   107,471 
REIT-Mortgage (2.53%)                    
ARMOUR Residential REIT Inc 7.875%   7,900              195,683 
                   195,683 
                     
REIT-Retail (17.01%)                    
CBL & Associates Properties In 6.625%   12,388              196,969 
Cedar Realty Trust Inc 7.250%   3,171              72,552 
DDR Corp 6.250%   22,250              493,728 
GGP Inc 6.375%   17,000              420,580 
Kimco Realty Corp 6.000%   5,306              131,377 
                   1,315,206 
REIT-Specialized (0.26%)                    
Digital Realty Trust Inc 5.875%   800              19,984 
                   19,984 
                     
Total Financial                  1,652,372 
                     
Total Preferred Stock (Cost $1,631,138)                  1,652,372 
                     
Bonds & Notes (3.30%)    Par Value      Rate      Maturity       
Sabra Health Care REIT Inc   250,000    5.500%   2/1/2021    255,081 
Total Bonds & Notes (Cost $249,395)                  255,081 
                     
Total Investments (Cost $7,694,842) (a) (98.78%)                  7,636,943 
Other Net Assets (1.22%)                  94,305 
Net Assets (100.00%)                  7,731,248 

 

*Non-income producing security.

 

(a)Aggregate cost for federal income tax purpose is $7,700,345

 

At March 31, 2018, unrealized appreciation (depreciation) of securities for federal income tax purposes is as follows:

                                 

Unrealized appreciation                  483,304 
Unrealized depreciation                  (546,706)
Net unrealized depreciation                  (63,402)

 

 

SHELTON TACTICAL CREDIT FUND             
Portfolio of Investments (Expressed in U.S. Dollars) (Unaudited) / March 31, 2018     
                     
Security Description  Shares   Par Value   Rate   Maturity   Value 
Common Stock (8.37%)                    
                     
Communications (1.68%)                    
Amazon.com Inc   183                   264,863 
Cisco Systems Inc   6,190                   265,489 
Total Communications                       530,352 
                          
Consumer, Cyclical (1.90%)                         
Chipotle Mexican Grill Inc   301                   97,256 
Costco Wholesale Corp   1,365                   257,207 
Starbucks Corp   4,240                   245,454 
Total Consumer, Cyclical                       599,917 
                          
Consumer, Non-Cyclical (1.51%)                         
Mondelez International Inc   5,710                   238,278 
United Rentals Inc   1,385                   239,231 
Total Consumer, Non-Cyclical                       477,509 
                          
Financial (1.79%)                         
JPMorgan Chase & Co   2,730                   300,218 
Mastercard Inc   1,515                   265,367 
Total Financial                       565,585 
                          
Industrial (1.49%)                         
Boeing Co/The   655                   214,761 
Fluor Corp   4,440                   254,057 
Total Industrial                       468,818 
                          
Total Common Stock (Cost $2,559,957)                    2,642,181 
                          
Corporate Debt (84.78%)                         
                          
Communications (9.69%)                         
Cequel Communications Holdings I LLC / Cequel Capital Corp        1,000,000    7.500%    04/01/2028     1,022,500 
Intelsat Jackson Holdings SA        1,000,000    8.000%    02/15/2024     1,051,250 
Sprint Corp        1,000,000    7.625%    02/15/2025     982,500 
Total Communications                       3,056,250 
                          
Consumer, Cyclical (17.33%)                         
BCD Acquisition Inc        1,000,000    9.625%    09/15/2023     1,080,000 
Golden Nugget Inc        2,000,000    8.750%    10/01/2025     2,075,000 
Navistar International Corp        230,000    6.625%    11/01/2025     230,000 
Rite Aid Corp        1,000,000    6.125%    04/01/2023     1,007,500 
Scientific Games International Inc        1,000,000    10.000%    12/01/2022     1,076,875 
Total Consumer, Cyclical                       5,469,375 
                          
Consumer, Non-Cyclical (22.89%)                         
DJO Finance LLC / DJO Finance Corp        1,000,000    8.125%    06/15/2021     1,002,500 
Herc Rentals Inc        919,000    7.500%    06/01/2022     981,033 
Hertz Corp/The        1,000,000    7.625%    06/01/2022     1,014,999 
Kinetic Concepts Inc / KCI USA Inc        1,000,000    12.500%    11/01/2021     1,130,000 
Tenet Healthcare Corp        1,000,000    8.125%    04/01/2022     1,042,500 
Avantor Inc        1,000,000    9.000%    10/01/2025     985,000 
Weight Watchers International Inc        1,000,000    8.625%    12/01/2025     1,065,000 
Total Consumer, Non-Cyclical                       7,221,032 
                          
Energy (10.64%)                         
McDermott International Inc        1,015,000    8.000%    05/01/2021     1,036,569 
Noble Holding International Ltd        1,000,000    7.875%    02/01/2026     985,000 
Transocean Inc        250,000    7.500%    01/15/2026     246,250 
Transocean Inc        1,025,000    9.000%    07/15/2023     1,090,344 
Total Energy                       3,358,163 
                          
Financial (7.24%)                         
Icahn Enterprises LP / Icahn Enterprises Finance Corp        1,250,000    6.750%    02/01/2024     1,271,875 
Jefferies Finance LLC / JFIN Co-Issuer Corp        1,000,000    7.500%    04/15/2021     1,011,250 
Total Financial                       2,283,125 
                          
Industrial (6.63%)                         
BlueLine Rental Finance Corp / BlueLine Rental LLC        1,000,000    9.250%    03/15/2024     1,072,180 
FXI Holdings Inc        1,042,000    7.875%    11/01/2024     1,020,509 
Total Industrial                       2,092,689 
                          
Technology (10.36%)                         
First Data Corp        1,250,000    7.000%    12/01/2023     1,312,125 
Rackspace Hosting Inc        1,000,000    8.625%    11/15/2024     987,500 
West Corp        1,000,000    8.500%    10/15/2025     967,500 
Total Technology                       3,267,125 
                          
Total Corporate Debt (Cost $26,400,662)                   26,747,759 
                          
Total Investments (Cost $28,960,619) (a) (93.15%)                  29,389,940 
Other Net Assets (6.85%)                       2,162,369 
Net Assets (100.00%)                       31,552,309 

 

(a)Aggregate cost for federal income tax purpose is $29,422,691

 

At March 31, 2018, unrealized appreciation (depreciation) of securities for federal income tax purposes is as follows:

                                         

Unrealized appreciation                      $132,122 
Unrealized depreciation                      $(164,873)
Net unrealized depreciation                      $(32,751)

 

 

SHELTON INTERNATIONAL SELECT EQUITY FUND    
Portfolio of Investments (Expressed in U.S. Dollars) (Unaudited) / March 31, 2018    
         
Security Description  Shares   Value 
Common Stock (98.82%)        
         
Belgium (3.23%)        
KBC Group NV   17,185    1,494,666 
Total Belgium        1,494,666 
           
Brazil (2.85%)          
Banco Bradesco SA   111,075    1,319,571 
Total Brazil        1,319,571 
           
Britain (9.25%)          
ASOS PLC   8,760    855,282 
Intertek Group PLC   17,500    1,143,984 
Rio Tinto PLC   18,280    941,968 
Unilever NV   23,800    1,342,082 
Total Britain        4,283,316 
           
China (7.64%)          
Alibaba Group Holding Ltd   7,705    1,414,176 

Ping An Insurance Group Co of China Ltd

   64,000    650,740 
Tencent Holdings Ltd   28,200    1,471,748 
Total China        3,536,664 
           
Colombia (2.38%)          
Bancolombia SA   26,200    1,100,924 
Total Colombia        1,100,924 
           
Denmark (4.02%)          
Ambu A/S   82,800    1,863,406 
Total Denmark        1,863,406 
           
France (12.85%)          
BNP Paribas SA   17,930    1,326,822 
L'Oreal SA   6,000    1,352,958 
Thales SA   8,700    1,058,628 
TOTAL SA   21,432    1,215,902 
Valeo SA   15,100    996,135 
Total France        5,950,445 
           
Germany (10.02%)          
adidas AG   5,000    1,209,250 
Beiersdorf AG   11,650    1,318,440 
Siemens AG   5,825    741,605 
Wirecard AG   11,600    1,368,420 
Total Germany        4,637,715 
           
Hong Kong (3.38%)          
AIA Group Ltd   185,000    1,565,180 
Total Hong Kong        1,565,180 
           
Indonesia (2.64%)          
Bank Rakyat Indonesia Persero Tbk PT   4,678,150    1,223,268 
Total Indonesia        1,223,268 
           
Ireland (2.32%)          
CRH PLC   31,745    1,076,377 
Total Ireland        1,076,377 
           
Japan (12.33%)          
CyberAgent Inc   19,500    997,461 
Daikin Industries Ltd   7,700    843,126 
ITOCHU Corp   53,200    1,026,231 
Komatsu Ltd   31,000    1,021,674 
Start Today Co Ltd   30,850    791,628 
Yaskawa Electric Corp   23,200    1,029,657 
Total Japan        5,709,777 
           
Luxembourg (2.31%)          
ArcelorMittal   33,828    1,069,207 
Total Luxembourg        1,069,207 
           
Netherlands (4.94%)          
ING Groep NV   76,700    1,292,315 
Royal Dutch Shell PLC   31,800    996,344 
Total Netherlands        2,288,659 
           
Norway (1.85%)          
Norsk Hydro ASA   146,600    858,020 
Total Norway        858,020 
           
Singapore (3.20%)          
DBS Group Holdings Ltd   70,550    1,479,543 
Total Singapore        1,479,543 
           
Switzerland (7.04%)          
dormakaba Holding AG   1,151    898,468 
Givaudan SA   517    1,174,804 
Nestle SA   15,000    1,185,750 
Total Switzerland        3,259,022 
           
Taiwan (3.35%)          
Taiwan Semiconductor Manufacturing   35,400    1,549,104 
Total Taiwan        1,549,104 
           
Thailand (3.22%)          
Bangkok Bank PCL   218,200    1,493,278 
Total Thailand        1,493,278 
           
Total Common Stock (Cost $34,135,380)        45,758,142 
           
Total Investments (Cost $34,135,380) (a) (98.82%)        45,758,142 
Other Net Assets (1.18%)        547,055 
Net Assets (100.00%)        46,305,197 

 

*Non-income producing security.

 

(a)Aggregate cost for federal income tax purpose is $34,145,384

 

At March 31, 2018, unrealized appreciation (depreciation) of securities for federal income tax purposes is as follows:

                 

Unrealized appreciation       $12,196,440 
Unrealized depreciation        (583,682)
Net unrealized appreciation       $11,612,758 

 

 

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 March 31, 2018 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  $8,750,856        $5,196   $8,756,052 
BDC Income Fund  $13,388,661   $-   $49,402   $13,438,063 
Real Estate Income Fund  $7,381,862   $255,081   $-   $7,636,943 
Tactical Credit Fund  $2,642,181   $26,747,759   $-   $29,389,940 
International Select Equity Fund  $45,758,142        $-   $45,758,142 
Total investments in securities  $77,921,702   $27,002,840   $54,598   $104,979,140 

 

(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: May 29, 2018

 

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: May 29, 2018

 

By /s/ William P. Mock

William P. Mock

Treasurer (as Principal Financial Officer)

Date: May 29, 2018