Estate of Frazier Jelke III, Deceased, Wachovia Bank, N.A., f.k.a. First Union National Bank, Personal Representative - Page 5

                                        - 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