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