- 5 -
CCC’s portfolio was well managed by experienced individuals.
Wilmington Trust provided custodial and advisory services at a
charge of 0.26 percent of asset value, and a stockholder-elected
board of directors (none of whom was a shareholder) managed CCC.
The shareholders of CCC were not allowed to participate in the
operation or management of CCC. In addition, the trust
beneficiaries showed little interest in participating in CCC,
attending about 12 board meetings over 20 years. Likewise, trust
beneficiaries did not attend CCC stockholders meetings.
CCC’s primary investment objective was long-term capital
growth, resulting in low asset turnover and large unrealized
capital gains. As of the date of decedent’s death, CCC’s board
of directors had no plans to liquidate an appreciable portion of
CCC’s portfolio, and they intended to operate CCC as a going
concern. The payment of dividends to CCC’s shareholders steadily
rose from $12.35 a share in 1974 to $34 a share in 1999. CCC’s
asset turnover for 1994 to 1998 was:
1994 1995 1996 1997 1998
6.74% 5.06% 4.66% 9.80% 3.48%
CCC’s net asset value increased from $59.5 million at the
end of 1994 to $139.0 million at the end of 1998, corresponding
to an average annual increase that exceeded 23 percent. On the
date of decedent’s death, the net asset value (assets less
liabilities) of CCC was $188,635,833, as follows:
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011