fp0008657_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: September 30, 2013
 
 
 
 
 
ITEM 1. SCHEDULE OF INVESTMENTS
 
SHELTON GREATER CHINA FUND
Portfolio of Investments (Expressed in U.S. Dollars) (Unaudited) / September 30, 2013
 
Security Description
  
Shares
    
Value
  
Common Stock (97.84%)
            
             
Basic Materials (1.66%)
            
Chemicals (0.74%)
            
Kingboard Chemical Holdings Ltd
     15,000       38,564  
Sinopec Shanghai Petrochemical Co Ltd
     124,000       46,205  
              84,769  
                 
Forest Products & Paper (0.59%)
                
Lee & Man Paper Manufacturing Ltd
     39,000       22,829  
Nine Dragons Paper Holdings Ltd
     63,000       44,432  
              67,261  
                 
Iron/Steel (0.09%)
                
Angang Steel Co Ltd
     18,000       10,676  
                 
Mining (0.24%)
                
Zijin Mining Group Co Ltd
     116,000       27,819  
                 
Total Basic Materials
             190,525  
                 
Communications (11.95%)
                
Internet (5.08%)
                
Tencent Holdings Ltd
     11,100       582,199  
                 
Telecommunications (6.87%)
                
China Mobile Ltd
     41,900       468,113  
Chunghwa Telecom Co Ltd
     100,000       320,290  
              788,403  
                 
Total Communications
             1,370,602  
                 
Consumer, Cyclical (8.07%)
                
Auto Manufacturers (1.54%)
                
Great Wall Motor Co Ltd
     32,500       176,205  
                 
Home Furnishings (1.11%)
                
Haier Electronics Group Co Ltd
     66,000       127,815  
                 
Lodging (3.55%)
                
Formosa International Hotels Corp
     8,800       98,813  
Sands China Ltd
     50,000       309,119  
              407,932  
                 
Retail (1.87%)
                
Intime Department Store Group Co Ltd
     41,000       44,828  
SA SA International Holdings Ltd
     150,000       169,226  
              214,054  
Total Consumer, Cyclical
             926,006  
 
 
 
 
 
SHELTON GREATER CHINA FUND
Portfolio of Investments (Expressed in U.S. Dollars) (Unaudited) / September 30, 2013 (continued)
 
Consumer, Non-Cyclical (4.21%)
                
Food (3.49%)
                
Uni-President Enterprises Corp
     52,046       96,991  
Want Want China Holdings Ltd
     200,000       303,769  
              400,760  
                 
Pharmaceuticals (0.72%)
                
Sinopharm Group Co Ltd
     13,500       33,872  
TTY Biopharm Co Ltd
     13,068       48,176  
              82,048  
                 
Total Consumer, Non-Cyclical
             482,808  
                 
Diversified (0.30%)
                
Holding Companies-Divers (0.30%)
                
Wharf Holdings Ltd
     4,000       34,657  
Total Diversified
             34,657  
                 
Energy (5.03%)
                
Coal (0.52%)
                
China Shenhua Energy Co Ltd
     12,500       38,036  
Shougang Fushan Resources Group Ltd
     64,000       21,537  
              59,573  
                 
Energy-Alternate Sources (0.86%)
                
China Longyuan Power Group Corp
     52,000       54,039  
GCL-Poly Energy Holdings Ltd
     156,000       45,055  
              99,094  
                 
Oil & Gas (3.65%)
                
China Petroleum & Chemical Corp
     78,000       61,045  
CNOOC Ltd
     137,000       278,737  
PetroChina Co Ltd
     70,000       77,257  
              417,039  
Total Energy
             575,706  
                 
Financial (36.83%)
                
                 
Banks (17.86%)
                
Bank of China Ltd
     1,009,000       460,534  
BOC Hong Kong Holdings Ltd
     70,000       224,732  
China Construction Bank Corp
     739,000       568,835  
China Minsheng Banking Corp Ltd
     27,500       32,869  
Chongqing Rural Commercial Bank
     67,000       32,308  
Hang Seng Bank Ltd
     10,000       163,102  
Industrial & Commercial Bank of China Ltd
     813,000       567,095  
              2,049,475  
                 
Diversified Financial Services (3.23%)
                
China Everbright Ltd
     20,000       26,096  
Fubon Financial Holding Co Ltd
     167,713       231,997  
Hong Kong Exchanges and Clearing Ltd
     6,700       107,378  
Mega Financial Holding Co Ltd
     6,000       4,921  
              370,392  
                 
Insurance (2.39%)
                
AIA Group Ltd
     50,000       234,983  
PICC Property & Casualty Co Ltd
     28,860       39,145  
              274,128  
                 
Real Estate (13.35%)
                
Cheung Kong Holdings Ltd
     25,000       380,678  
China Overseas Land & Investment Ltd
     80,000       235,692  
China Resources Land Ltd
     14,000       39,802  
Hysan Development Co Ltd
     40,000       178,187  
Kerry Properties Ltd
     9,000       38,351  
Link REIT/The
     85,000       417,005  
New World Development Co Ltd
     23,000       34,578  
Sino-Ocean Land Holdings Ltd
     27,500       16,168  
Sun Hung Kai Properties Ltd
     14,000       190,436  
              1,530,897  
Total Financial
             4,224,892  
 
 
 
 
 
SHELTON GREATER CHINA FUND
Portfolio of Investments (Expressed in U.S. Dollars) (Unaudited) / September 30, 2013 (continued)
 
Industrial (9.49%)
                
Building Materials (0.15%)
                
BBMG Corp
     14,500       9,703  
China National Building Material Co Ltd
     8,000       7,684  
              17,387  
                 
Electrical Components & Equipment (0.31%)
                
Tianneng Power International Ltd
     90,000       35,044  
                 
Electronics (0.38%)
                
Hon Hai Precision Industry Co Ltd
     17,202       44,158  
                 
Engineering & Construction (5.21%)
                
China State Construction International Holdings Ltd
     372,000       598,585  
                 
Environmental Control (3.17%)
                
China Everbright International Ltd
     411,200       363,171  
                 
Miscellaneous Manufacturing (0.27%)
                
Fosun International Ltd
     39,000       30,724  
                 
Total Industrial
             1,089,069  
                 
Technology (13.83%)
                
Computers (1.72%)
                
Asustek Computer Inc
     20,000       159,299  
Lenovo Group Ltd
     36,000       37,644  
              196,943  
                 
Semiconductors (12.11%)
                
Chipbond Technology Corp
     233,000       479,916  
MediaTek Inc
     25,000       309,044  
Taiwan Semiconductor Manufacturing Co Ltd
     176,284       599,200  
              1,388,160  
Total Technology
             1,585,103  
                 
Utilities (6.47%)
                
Electric (5.09%)
                
China Resources Power Holdings Co Ltd
     94,000       223,489  
Huaneng Power International Inc
     92,000       91,811  
Power Assets Holdings Ltd
     30,000       268,441  
              583,741  
                 
Gas (1.38%)
                
Hong Kong & China Gas Co Ltd
     66,000       158,790  
                 
Total Utilities
             742,531  
                 
Total Common Stock (Cost $9,119,997)
             11,221,899  
                 
Total Investments (Cost $9,119,997) (a) (97.84%)
             11,221,899  
Other Net Assets (2.16%)
             248,125  
Net Assets (100.00%)
             11,470,024  
 
(a)
September 30, 2013, unrealized apprecation (depreciation) of securities is as follows:
 
Unrealized appreciation
           $ 2,310,286  
Unrealized depreciation
             (208,384 )
Net unrealized appreciation
           $ 2,101,902  
 
 
 
 
 
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 September 30, 2013 using fair value hierarchy:
 
   
Level 1(b)
    
Level 2(b)
    
Level 3(b)
    
Total
  
Investments, in securities
                        
  Common stocks (a)
   $ 11,221,899     $ -     $ -     $ 11,221,899  
  Rights and warrants
     -       -       -     $ -  
  Short term securities
     -       -       -     $ -  
Total investments in securities
   $ 11,221,899     $ -     $ -     $ 11,221,899  
 
(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 September 30, 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: November 18, 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: November 18, 2013
 
By /s/ William P. Mock
William P. Mock
Treasurer (as Principal Financial Officer)
Date: November 18, 2013