fp0012198_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, 2014
 
 
 
 
 
ITEM 1. SCHEDULE OF INVESTMENTS
 
SHELTON GREATER CHINA FUND
Portfolio of Investments (Expressed in U.S. Dollars) (Unaudited) / September 30, 2014
 
Security Description
  
Shares
    
Value
  
Common Stock (99.99%)
            
             
Basic Materials (1.59%)
            
Chemicals (0.76%)
            
Kingboard Chemical Holdings Lt
     7,000       13,918  
Sinopec Shanghai Petrochemical Co. Ltd.
     186,000       61,319  
              75,237  
                 
Forest Products & Paper (0.09%)
                
Lee & Man Paper Manufacturing Ltd
     18,000       9,133  
                 
Iron/Steel (0.11%)
                
Angang Steel Co Ltd
     18,000       11,358  
                 
Mining (0.63%)
                
China Shenhua Energy Co Ltd     12,500       34,851  
Zijin Mining Group Co Ltd
     116,000       28,233  
              63,084  
                 
Total Basic Materials
             158,812  
                 
Communications (8.61%)
                
Telecommunications (8.61%)
                
China Mobile Ltd
     41,900       484,272  
Chunghwa Telecom Co Ltd
     100,000       301,397  
PCCW Limited
     118,000       74,156  
Total Communications
             859,825  
                 
Consumer, Cyclical (8.04%)
                
Auto Manufacturers (0.56%)
                
Great Wall Motor Co Ltd
     14,500       56,299  
                 
Home Furnishings (2.97%)
                
Haier Electronics Group Co Ltd
     113,000       296,132  
                 
Lodging (4.16%)
                
Formosa International Hotels Corp
     9,680       102,765  
Galaxy Entertainment Group Ltd
     9,000       52,271  
Sands China Ltd.
     50,000       260,776  
              415,812  
 
 
 
 
 
SHELTON GREATER CHINA FUND
Portfolio of Investments (Expressed in U.S. Dollars) (Unaudited) / September 30, 2014 (continued) 
 
Retail (0.35%)
                
Intime Retail Group Co Ltd
     41,000       34,847  
                 
Total Consumer, Cyclical
             803,090  
                 
Consumer, Non-Cyclical (7.30%)
                
Food (4.37%)
                
China Mengniu Dairy Co Ltd
     22,000       90,660  
Uni-President Enterprises Corp
     55,169       95,741  
Want Want China Holdings Ltd
     200,000       249,314  
              435,715  
                 
Pharmaceuticals (2.93%)
                
Sihaun Pharmaceutical Holdings Group Ltd
     284,000       212,855  
Sinopharm Group Co Ltd
     13,500       49,373  
TTY Biopharm Co Ltd
     13,944       30,706  
              292,934  
                 
Total Consumer, Non-Cyclical
             728,649  
                 
Energy (2.54%)
                
Oil & Gas (2.54%)
                
China Petroleum & Chemical Corp
     78,000       68,304  
CNOOC Ltd
     56,000       96,058  
PetroChina Co., LTD
     70,000       89,694  
Total Energy
             254,056  
                 
Financial (36.21%)
                
Banks (19.36%)
                
Bank of China Ltd
     1,009,000       452,180  
BOC Hong Kong Holdings Ltd
     70,000       223,108  
China CITIC Bank
     135,000       81,884  
China Construction Bank Corp
     639,000       447,653  
China Minsheng Banking Corp
     33,000       30,173  
Chongqing Rural Commercial Bnk
     223,000       101,086  
Hang Seng Bank Ltd
     10,000       160,586  
Indust and Comm Bank of China
     700,000       436,300  
              1,932,970  
 
 
 
 
 
SHELTON GREATER CHINA FUND
Portfolio of Investments (Expressed in U.S. Dollars) (Unaudited) / September 30, 2014 (continued) 
 
Diversified Financial Services (4.45%)
                
China Everbright Ltd
     20,000       37,500  
Fubon Financial Holding Co Ltd
     167,713       257,426  
Hong Kong Exchanges & Clearing
     6,700       144,176  
Mega Financial Holding Co Ltd
     6,477       5,311  
              444,413  
                 
Insurance (4.59%)
                
AIA Group Ltd
     50,000       258,522  
China Taiping Insurance Hldg*
     68,400       148,334  
PICC Property & Casualty Co Lt
     28,860       51,140  
              457,996  
                 
Real Estate (7.81%)
                
Cheung Kong Holdings Ltd
     13,000       214,119  
Hysan Development Co Ltd
     40,000       184,925  
The Link REIT
     25,500       146,952  
New World Development Co Ltd
     30,666       35,700  
Sun Hung Kai Properties Ltd
     14,000       198,498  
              780,194  
                 
Total Financial
             3,615,573  
                 
Industrial (9.94%)
                
Building Materials (0.17%)
                
BBMG Corp
     14,500       10,046  
China National Building Material Co Ltd
     8,000       7,253  
              17,299  
                 
Electrical Components & Equipment (0.31%)
                
Tianneng Power International Ltd
     90,000       30,482  
                 
Electronics (0.61%)
                
Hon Hai Precision Industry Co Ltd
     19,265       60,787  
                 
Engineering & Construction (3.63%)
                
China State Construction International Holdings Ltd
     244,000       362,608  
 
 
 
 
 
SHELTON GREATER CHINA FUND
Portfolio of Investments (Expressed in U.S. Dollars) (Unaudited) / September 30, 2014 (continued) 
 
Environmental Control (4.68%)
                
China Everbright International Ltd
     353,200       467,579  
                 
Miscellaneous Manufacturing (0.47%)
                
Fosun International Ltd
     39,000       46,808  
                 
Transportation (0.07%)
                
Kerry Logistics Network Ltd
     4,500       7,012  
                 
Total Industrial
             992,575  
                 
Technology (18.70%)
                
Computers (3.31%)
                
Asustek Computer Inc
     20,000       190,633  
Lenovo Group Ltd
     94,000       139,935  
              330,568  
                 
Semiconductors (9.80%)
                
Chipbond Technology Corp
     116,000       212,365  
Media Tek Inc.
     25,000       370,173  
Taiwan Semiconductor Manufacturing Co Ltd
     100,284       395,533  
              978,071  
Software (5.59%)
                
Tencent Holdings Ltd     37,500       557,769  
                 
Total Technology
             1,866,408  
                 
Utilities (7.06%)
                
Electric (5.12%)
                
China Resources Power Holding Co. Ltd.
     94,000       253,603  
HK Electric Investments & HK Electric Investments Ltd
     4,375       2,879  
Huaneng Power InternationalInc
     92,000       100,467  
Power Assets Holdings Ltd
     17,500       154,711  
              511,660  
                 
Energy-Alternate Sources (1.15%)
                
China Longyuan Power Group Crp
     52,000       50,826  
GCL-Poly Energy Holdings Ltd*
      156,000        57,255  
Shougang Fushan Resources Group Ltd
      28,000        6,274  
               114,355  
                 
Gas (0.79%)
                
Hong Kong and China Gas Co Ltd
     36,300       78,721  
                 
Total Utilities
             704,736  
                 
Total Common Stock (Cost $8,068,322)
             9,983,724  
                 
Rights/Warrants (0.02%)
                
Sun Hung Kai Properties Ltd Warrants
     1,166       1,949  
Total Rights/Warrants (Cost $240)
             1,949  
 
 
 
 
 
SHELTON GREATER CHINA FUND
Portfolio of Investments (Expressed in U.S. Dollars) (Unaudited) / September 30, 2014 (continued) 
 
Total Investments (Cost $8,068,562) (a) (100.01%)
             9,985,673  
Liabilities in Excess of Other Assets (-0.01%)
             (717 )
Net Assets (100.00%)
             9,984,956  
 
*
Non-income producing security
(a)
Aggregate cost for federal income tax purpose is $8,642,464

At September 30, 2014, unrealized apprecation (depreciation) of securities for federal income tax purposes is as follows:

Unrealized appreciation
   $ 3,119,217  
Unrealized depreciation
     (1,776,008 )
Net unrealized appreciation
   $ 1,343,209  

 
 
 
 
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, 2014 using fair value hierarchy:
 
   
Level 1(b)
    
Level 2(b)
    
Level 3(b)
    
Total
  
Investments, in securities
                        
  Common stocks (a)
   $ 9,983,724     $ -     $ -     $ 9,983,724  
  Rights and warrants
     1,949       -       -     $ 1,949  
  Short term securities
     -       -       -     $ -  
Total investments in securities
   $ 9,985,673     $ -     $ -     $ 9,985,673  

(a)
For a detailed breakout of common stocks by major industry classification, please refer to the Portfolio of Investments.
(b)
It is the Fund's policy to recognize transfers between levels on the last day of the fiscal reporting period.  There were no transfers in or out of Level 1, Level 2, and Level 3 as of September 30, 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: November 24, 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: November 24, 2014
 
By /s/ William P. Mock
William P. Mock
Treasurer (as Principal Financial Officer)
Date: November 24, 2014