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, 2018

 

 

 

SHELTON GREATER CHINA FUND
Portfolio of Investments (Expressed in U.S. Dollars) (Unaudited) / September 28, 2018

 

Security Description  Shares   Value 
Common Stock (97.89%)          
           
Basic Materials (1.51%)          
Sinopec Shanghai Petrochemical Co Ltd   186,000    113,622 
           
Communications (21.94%)          
Alibaba Group Holding Ltd   2,055    338,582 
China Mobile Ltd   20,900    206,065 
CyberAgent Inc   3,000    159,792 
Chunghwa Telecom Co Ltd   36,000    129,696 
Tencent Holdings Ltd   15,000    619,560 
YY Inc   800    59,936 
ZOZO Inc   4,400    133,257 
Total Communications        1,646,888 
           
Consumer, Cyclical (8.54%)          
ANTA Sports Products Ltd   27,000    129,567 
Galaxy Entertainment Group Ltd   18,000    114,212 
Great Wall Motor Co Ltd   111,000    70,786 
Haier Electronics Group Co Ltd   75,000    203,677 
ITOCHU Corp   6,700    122,692 
Total Consumer, Cyclical        640,934 
           
Consumer, Non-Cyclical (4.08%)          
New Oriental Education & Technology Group Inc   1,000    74,010 
Sino Biopharmaceutical Ltd   88,050    82,144 
Uni-President Enterprises Corp   57,374    149,762 
Total Consumer, Non-Cyclical        305,916 
           
Diversified (2.00%)          
CK Hutchison Holdings Ltd   13,000    149,855 
           
Energy (3.64%)          
CNOOC Ltd   56,000    110,928 
PetroChina Co Ltd   200,000    162,047 
Total Energy        272,975 
           
Financial (29.88%)          
Banks (8.28%)          
Bank of China Ltd   343,000    152,544 
China Construction Bank Corp   312,000    272,729 
DBS Group Holdings Ltd   10,300    196,675 
         621,948 
           
Diversified Financial Services (3.18%)          
Fubon Financial Holding Co Ltd   54,713    92,822 
Hong Kong Exchanges & Clearing Ltd   5,100    145,995 
         238,817 
           
Insurance (12.09%)          
AIA Group Ltd   45,600    407,346 
China Taiping Insurance Holdings Co Ltd   55,764    195,622 
Ping An Insurance Group Co of China Ltd   30,000    304,796 
         907,764 
           
Real Estate (6.33%)          
CK Asset Holdings Ltd   13,000    97,605 
Hysan Development Co Ltd   31,000    156,686 
Sun Hung Kai Properties Ltd   15,166    220,952 
         475,243 
           
Total Financial        2,243,772 
           
Industrial (15.08%)          
China Communications Services Corp Ltd   202,000    186,126 
China State Construction International Holdings Ltd   202,500    214,019 
Daikin Industries Ltd   1,800    239,688 
Komatsu Ltd   6,900    209,943 
Largan Precision Co Ltd   1,000    119,052 
Yaskawa Electric Corp   5,500    163,424 
Total Industrial        1,132,252 
           
Technology (7.82%)          
Taiwan Semiconductor Manufacturing Co Ltd   68,280    587,021 
           
Utilities (3.40%)          
China Longyuan Power Group Corp Ltd   152,000    127,818 
China Resources Power Holdings Co Ltd   72,000    127,347 
Total Utilities        255,165 
           
Total Common Stock (Cost $6,027,729)        7,348,400 
           
Total Investments (Cost $6,027,729) (a) (97.89%)        7,348,400 
Other Net Assets (2.11%)        158,569 
Net Assets (100.00%)        7,506,969 

 

*Non-income producing security.
(a)Aggregate cost for federal income tax purpose is $6,380,907

 

At September 28, 2018, unrealized appreciation (depreciation) of securities for federal income tax purposes is as follows:

 

Unrealized appreciation       $1,334,340 
Unrealized depreciation        (366,848)
Net unrealized appreciation       $967,492 

 

 

 

SHELTON BDC INCOME FUND      
Portfolio of Investments (Expressed in U.S. Dollars) (Unaudited) / September 28, 2018  

 

Security Description  Shares   Value 
Common Stock (100.02%)          
           
Financial (100.02%)          
Diversified Financial Services (3.46%)          
NewStar Financial Inc   100,410    65,668 
Medley Management Inc   65,000    341,250 
         406,918 
           
Investment Company (86.81%)          
Apollo Investment Corp   185,030    1,006,563 
Ares Capital Corp   121,351    2,086,024 
BlackRock TCP Capital Corp   62,500    889,375 
Goldman Sachs BDC Inc   23,680    525,222 
Main Street Capital Corp   3,000    115,500 
New Mountain Finance Corp   26,800    361,800 
Oaktree Strategic Income Corp   66,263    573,175 
PennantPark Floating Rate Capital Ltd   69,000    907,350 
PennantPark Investment Corp   31,000    231,260 
Solar Capital Ltd   87,569    1,872,225 
TPG Specialty Lending Inc   34,100    695,299 
TriplePoint Venture Growth BDC Corp   69,078    938,770 
         10,202,563 
           
Private Equity (9.75%)          
Hercules Capital Inc   87,050    1,145,578 
           
Total Financial        11,755,059 
           
Total Common Stock (Cost $11,740,089)        11,755,059 
           
Total Investments (Cost $11,740,089) (a) (100.02%)        11,755,059 
Liabilities in Excess of Other Assets (-0.02%)        (1,830)
Net Assets (100.00%)        11,753,229 

 

*Non-income producing security.
(a)Aggregate cost for federal income tax purpose is $11,783,866

 

At September 28, 2018, unrealized appreciation (depreciation) of securities for federal income tax purposes is as follows:

 

Unrealized appreciation       $332,273 
Unrealized depreciation        (361,079)
Net unrealized depreciation       $(28,806)

  

 

 

SHELTON REAL ESTATE INCOME FUND
Portfolio of Investments (Expressed in U.S. Dollars) (Unaudited) / September 28, 2018

 

Security Description  Shares   Value 
Common Stock (88.89%)          
           
Financial (88.89%)          
REITS- Diversified (2.06%)          
Liberty Property Trust   3,080    130,130 
           
REITS- Health Care (3.75%)          
Healthcare Trust of America Inc   6,056    161,514 
Physicians Realty Trust   4,500    75,870 
         237,384 
           
REITS- Hotel & Resort REITs (3.94%)          
Sunstone Hotel Investors Inc   15,250    249,490 
           
REIT- Industrial (10.09%)          
Duke Realty Corp   10,950    310,651 
Prologis Inc   3,506    237,672 
Rexford Industrial Realty Inc   2,820    90,127 
         638,450 
           
REIT-Mortgage (13.31%)          
Apollo Commercial Real Estate Finance Inc   13,107    247,329 
Blackstone Mortgage Trust Inc   13,789    462,069 
Starwood Property Trust Inc   6,156    132,477 
         841,875 
           
REIT-Office (7.23%)          
Alexandria Real Estate Equities Inc   2,000    251,580 
Boston Properties Inc   643    79,147 
Kilroy Realty Corp   1,770    126,891 
         457,618 
           
REIT-Residential (16.19%)          
American Homes 4 Rent   2,178    47,676 
Apartment Investment & Management Co   2,155    95,100 
AvalonBay Communities Inc   1,983    359,220 
Equity Residential   1,340    88,788 
Essex Property Trust Inc   360    88,816 
Sun Communities Inc   3,390    344,221 
         1,023,821 
           
REIT-Retail (10.92%)          
Brixmor Property Group Inc   11,850    207,494 
Federal Realty Investment Trust   1,950    246,616 
Retail Value Inc   290    9,480 
Simon Property Group Inc   1,065    188,239 
SITE Centers Corp   2,904    38,885 
         690,714 
           
REIT-Specialized (20.51%)          
American Tower Corp   1,330    193,249 
CoreSite Realty Corp   2,180    242,285 
Crown Castle International Corp   1,710    190,374 
CubeSmart   3,250    92,723 
CyrusOne Inc   2,185    138,529 
EPR Properties   1,996    136,546 
Equinix Inc   140    60,605 
QTS Realty Trust Inc   5,700    243,219 
         1,297,530 
           
Real Estate Operating Companies (0.89%)          
Brookfield Property Partners LP   2,684    56,069 
           
Total Financial        5,623,081 
           
Total Common Stock (Cost $5,301,774)        5,623,081 
           
Preferred Stock (5.21%)          
           
Financial (5.21%)          
REITS- Diversified (0.23%)          
PS Business Parks Inc 5.750%   567    14,005 
           
REIT-Mortgage (1.32%)          
ARMOUR Residential REIT Inc 7.875%   3,340    83,567 
           
REIT-Retail (3.35%)          
Cedar Realty Trust Inc 7.250%   3,171    78,292 
Kimco Realty Corp 6.000%   5,306    133,764 
         212,056 
REIT-Specialized (0.31%)          
Digital Realty Trust Inc 5.875%   800    19,688 
           
Total Financial        329,316 
           
Total Preferred Stock (Cost $302,613)        329,316 
           
Total Investments (Cost $5,604,387) (a) (94.10%)        5,952,397 
Other Net Assets (5.90%)        373,248 
Net Assets (100.00%)        6,325,645 

 

*Non-income producing security.
(a)Aggregate cost for federal income tax purpose is $5,609,890

 

At September 28, 2018, unrealized appreciation (depreciation) of securities for federal income tax purposes is as follows:

 

Unrealized appreciation        550,981 
Unrealized depreciation        (208,474)
Net unrealized appreciation        342,507 

 

 

 

SHELTON TACTICAL CREDIT FUND
Portfolio of Investments (Expressed in U.S. Dollars) (Unaudited) / September 28, 2018

 

Security Description   Shares    Par Value   Rate   Maturity   Value 
Corporate Debt (88.67%)                          
                          
Communications (21.38%)                          
Altice France SA         1,750,000    8.125%   -    1,802,500 
CenturyLink Inc         1,250,000    7.500%   -    1,334,375 
Cequel Communications Holdings I LLC / Cequel Capital Corp         2,000,000    7.500%   -    2,097,500 
Intelsat Jackson Holdings SA         3,000,000    8.500%   -    3,033,000 
Sprint Corp         1,500,000    7.625%   -    1,588,125 
Total Communications                        9,855,500 
                           
Consumer, Cyclical (12.08%)                          
BCD Acquisition Inc         1,000,000    9.625%   -    1,066,250 
Golden Nugget Inc         2,000,000    8.750%   -    2,096,560 
Rite Aid Corp         1,500,000    6.125%   -    1,344,375 
Scientific Games International Inc         1,000,000    10.000%   -    1,058,750 
Total Consumer, Cyclical                        5,565,935 
                           
Consumer, Non-Cyclical (21.92%)                          
Avantor Inc         1,500,000    9.000%   -    1,548,750 
DJO Finance LLC / DJO Finance Corp         1,500,000    8.125%   -    1,531,875 
Herc Rentals Inc         803,000    7.500%   -    849,173 
The Hertz Corp         1,500,000    7.625%   -    1,481,250 
Kinetic Concepts Inc / KCI USA Inc         1,500,000    12.500%   -    1,650,450 
Pyxus International Inc         1,500,000    9.875%   -    1,456,875 
Tenet Healthcare Corp         1,500,000    8.125%   -    1,580,700 
Total Consumer, Non-Cyclical                        10,099,072 
                           
Energy (10.78%)                          
McDermott Technology Americas Inc / McDermott Technology US Inc         1,500,000    10.625%   -    1,605,000 
Noble Holding International Ltd         1,750,000    7.875%   -    1,815,625 
Transocean Inc         1,500,000    7.500%   -    1,548,750 
Total Energy                        4,969,375 
                           
Financial (6.57%)                          
Icahn Enterprises LP / Icahn Enterprises Finance Corp         1,250,000    6.750%   -    1,279,688 
Jefferies Finance LLC / JFIN Co-Issuer Corp         1,000,000    7.500%   -    1,022,500 
Jefferies Finance LLC / JFIN Co-Issuer Corp         750,000    7.250%   -    727,500 
Total Financial                        3,029,688 
                           
Industrial (6.49%)                          
BlueLine Rental Finance Corp / BlueLine Rental LLC         1,850,000    9.250%   -    1,944,813 
LSB Industries Inc         1,000,000    9.625%   -    1,047,500 
Total Industrial                        2,992,312 
                           
Technology (9.45%)                          
Banff Merger Sub Inc         1,500,000    9.750%   -    1,521,750 
Rackspace Hosting Inc         1,500,000    8.625%   -    1,458,900 
West Corp         1,500,000    8.500%   -    1,376,250 
Total Technology                        4,356,900 
                           
Total Corporate Debt (Cost $40,102,121)                        40,868,782 
                           
Exchange Traded Fund (1.83%)                          
iShares Russell 2000         5,000         -    842,750 
Total Industrial                        842,750 
                           
Total Investments (Cost $40,944,760) (a) (90.50%)                        41,711,532 
Other Net Assets (9.50%)                        4,377,727 
Net Assets (100.00%)                        46,089,259 

 

(a)Aggregate cost for federal income tax purpose is $41,406,832

 

At September 28, 2018, unrealized appreciation (depreciation) of securities for federal income tax purposes is as follows:

 

Unrealized appreciation                 $394,448 
Unrealized depreciation                 $(89,748)
Net unrealized appreciation                 $304,700 

 

 

 

SHELTON INTERNATIONAL SELECT EQUITY FUND
Portfolio of Investments (Expressed in U.S. Dollars) (Unaudited) / September 28, 2018

 

Security Description  Shares   Value 
Common Stock (95.28%)          
           
Belgium (2.92%)          
KBC Group NV   21,780    1,621,569 
Total Belgium        1,621,569 
           
Britain (8.15%)          
Intertek Group PLC   22,300    1,451,691 
Rio Tinto PLC   27,080    1,381,622 
Unilever NV   30,306    1,683,498 
Total Brazil        4,516,811 
           
China (6.73%)          
Alibaba Group Holding Ltd   9,805    1,615,472 
Ping An Insurance Group Co of China Ltd   118,200    1,200,897 
Tencent Holdings Ltd   22,100    912,819 
Total China        3,729,188 
           
Colombia (2.01%)          
Bancolombia SA   26,750    1,116,010 
Total Colombia        1,116,010 
           
Denmark (1.62%)          
Ambu A/S   37,300    896,429 
Total Denmark        896,429 
           
France (13.40%)          
BNP Paribas SA   22,778    1,394,531 
L'Oreal SA   7,629    1,840,448 
Thales SA   11,030    1,567,469 
TOTAL SA   27,212    1,764,922 
Valeo SA   19,756    858,203 
Total France        7,425,573 
           
Germany (10.01%)          
adidas AG   6,345    1,554,275 
Beiersdorf AG   14,750    1,664,901 
Wirecard AG   10,760    2,333,330 
Total Germany        5,552,506 
           
Hong Kong (3.74%)          
AIA Group Ltd   232,200    2,074,248 
Total Hong Kong        2,074,248 
           
Indonesia (2.02%)          
Bank Rakyat Indonesia Persero Tbk PT   5,292,750    1,118,824 
Total Indonesia        1,118,824 
           
Ireland (2.87%)          
CRH PLC   2,300    75,343 
CRH PLC   46,326    1,516,301 
Total Ireland        1,591,644 
           
Japan (12.91%)          
CyberAgent Inc   24,800    1,320,949 
Daikin Industries Ltd   9,800    1,304,970 
ITOCHU Corp   67,800    1,241,572 
Komatsu Ltd   39,500    1,201,849 
Santen Pharmaceutical Co Ltd   76,300    1,209,810 
Yaskawa Electric Corp   29,500    876,546 
Total Japan        7,155,695 
           
Luxembourg (2.12%)          
ArcelorMittal   37,828    1,177,518 
Total Luxembourg        1,177,518 
           
Netherlands (4.79%)          
ING Groep NV   97,332    1,264,365 
Royal Dutch Shell PLC   40,447    1,390,621 
Total Netherlands        2,654,986 
           
Norway (2.07%)          
Norsk Hydro ASA   191,200    1,147,205 
Total Norway        1,147,205 
           
Singapore (2.60%)          
DBS Group Holdings Ltd   75,450    1,440,693 
Total Singapore        1,440,693 
           
Switzerland (7.79%)          
dormakaba Holding AG   1,481    1,121,212 
Givaudan SA   652    1,610,643 
Nestle SA   19,109    1,589,869 
Total Switzerland        4,321,724 
           
Taiwan (3.58%)          
Taiwan Semiconductor Manufacturing Co Ltd   45,000    1,987,200 
Total Taiwan        1,987,200 
           
Thailand (3.36%)          
Bangkok Bank PCL   276,800    1,865,875 
Total Thailand        1,865,875 
           
United States (2.59%)          
Akers Biosciences Inc   33,900    1,437,877 
Total Thailand        1,437,877 
           
Total Common Stock (Cost $43,735,131)        52,831,575 
           
Total Investments (Cost $43,735,131) (a) (95.28%)        52,831,575 
Other Net Assets (4.72%)        2,618,699 
Net Assets (100.00%)        55,450,274 

 

*Non-income producing security.
(a)Aggregate cost for federal income tax purpose is $43,745,135

 

At September 28, 2018, unrealized appreciation (depreciation) of securities for federal income tax purposes is as follows:

 

Unrealized appreciation       $10,330,256 
Unrealized depreciation        (1,243,816)
Net unrealized appreciation       $9,086,440 

 

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 28, 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  $7,348,400        $-   $7,348,400 
BDC Income Fund  $11,689,391   $-   $65,668   $11,755,059 
Real Estate Income Fund  $5,952,397   $-   $-   $5,952,397 
Tactical Credit Fund  $842,750   $40,868,782   $-   $41,711,532 
International Select Equity Fund  $52,831,575        $-   $52,831,575 
Total investments in securities  $78,664,513   $40,868,782   $65,668   $119,598,963 

 

( 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 27, 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: November 27, 2018

 

By /s/ William P. Mock

William P. Mock

Treasurer (as Principal Financial Officer)

Date: November 27, 2018