Shareholder Information and Shareholder Questions we are often asked:
1. How did the Company get its name?
2. How does the Company make its investment decisions?
3. Do the Company's shares trade at a discount or premium? If so, how do I find out what that is?
4. What is the expense ratio of the Fund and how does it compare to other funds?
5. What are the features that an investment in Adams Express offers?
6. How do I invest in Adams Express?
7. Where do I get information on the stock's price, trading and/or net asset value?
8. How do I replace a lost certificate(s) or how do I correct a spelling error on my certificate?
9. Can you send my dividend checks directly to my bank?
10. Who do I notify of a change of address?
11. We go to Florida (Arizona) every winter. How do we get our mail from Adams Express?
12. I want to give shares to my children, grandchildren, etc. as a gift. How do I go about it?
Question 1: How did the Company get its name?
The Adams Express Company is named for its founder, Alvin Adams. The Company began in 1840 as a delivery business for transporting securities, documents and parcels up and down the Northeastern U.S. After many years as an express company, it became an investment company in 1929 and has been structured as a closed-end fund since 1929.
Question 2: How does the Company make its investment decisions?
The Company is internally managed, which means that we have our own staff of research analysts and portfolio managers, and we do not pay a fee to an outside adviser to manage the portfolio. The research analysts use a "bottom up" approach in selecting the stocks they recommend and look for investments that offer long-term earnings growth at a reasonable price. A team of three portfolio managers reviews the analysts' recommendations and decides which stocks to purchase, and, as importantly, which to sell.
Question 3: Do the Company's shares trade at a discount or premium? If so, how do I find out what that is?
As a closed-end fund, the Company's shares are publicly traded on the New York Stock Exchange and our symbol is ADX. Because our shares are publicly traded, their price is set by the market place, and the share price may or may not match the Fund's Net Asset Value (NAV). Typically, our shares trade at a discount to the NAV, meaning that the market price is less than the underlying assets of the Fund. The Fund has occasionally traded at a premium, meaning that the market price is greater than the value of the underlying assets, most recently doing so in 1993. We post the Fund's closing market price, NAV and discount/premium on our website every day. You can also find this information if you have access to a NASDAQ reporting service under the symbol XADEX.
Question 4: What is the expense ratio of the Fund and how does it compare to other funds?
As an internally-managed fund, we are able to keep a very tight rein on our expenses and operate with a very lean staff. Our expense ratio last year was .48%, which compares favorably to what most passively-managed index funds charge. The average U. S. diversified mutual fund last year had an expense ratio of 1.36%, highlighting how low our expense ratio is.
Please note that, while an expense ratio of 0.50% or less is quite typical for the Fund, during the first quarter ended March 31, 2009, our expense ratio increased to 0.92%. The primary reason for the increase is directly related to some non-recurring expenses on top of the sharp decline in net assets over the last six months, resulting from broad stock market declines over a relatively short period. As the stock market recovers, the resulting increase in net assets should lead to a more typical expense ratio.
Question 5: What are the features that an investment in Adams Express offers?
Although each investor's particular financial needs, goals, and time frame are different, Adams Express offers the following attributes:
- Diversification
- Low expenses
- Low portfolio turnover
- An experienced team of portfolio managers who have been running the fund together for over 22 years
- Consistent dividend and capital gains payouts - we have paid dividends every year since 1935
- Conservative investment philosophy
- The ability to invest and reinvest at a discount
Question 6: How do I invest in Adams Express?
Adams Express Common Stock is listed on the New York Stock Exchange. The stock's ticker symbol is "ADX" and may be bought and sold through registered investment security dealers. Your broker will be able to assist you in this regard. In addition, stock may be purchased through our transfer agent, American Stock Transfer & Trust Company (AST).
Question 7: Where do I get information on the stock's price, trading and/or net asset value?
The daily net asset value (NAV) per share and closing market price may be obtained from our website at www.adamsexpress.com. The daily NAV is also available on the NASDAQ Mutual Fund Quotation System under the symbol XADEX. The week-ending NAV is published on Saturdays in various newspapers and on Mondays in The Wall Street Journal in a table titled "Closed-End Funds." The table compares the net asset value at the close of the week's last business day to the market price of the shares, and shows the amount of the discount or premium.
Adams' daily trading is shown in the stock tables of most daily newspapers, usually with the abbreviated form "AdaEx." Local newspapers determine, usually by volume of traded shares, which securities to list. If your paper does not carry our listing, please telephone the Company at (800) 638-2479 or visit our website.
Question 8: How do I replace a lost certificate(s) or how do I correct a spelling error on my certificate?
Your Adams Express stock certificates are valuable documents and should be kept in a safe place. For tax purposes, keep a record of each certificate, including the cost or market value of the shares at the time acquired. If a certificate is lost, destroyed or stolen, notify the Transfer Agent at (877) 260-8188 immediately so a "stop transfer" order can be placed on the records to prevent an unauthorized transfer of your certificate. The necessary forms and requirements to permit the issuance of a replacement certificate will then be sent to you. A certificate can be replaced only after an affidavit of loss is received and accompanied by an open penalty bond, for which a small premium is paid by the stockholder.
In the event a certificate is issued with the holder's name incorrectly spelled, a correction can only be made if the certificate is returned to the Transfer Agent with instructions for correcting the error. Transferring shares to another name also requires that the certificate be forwarded to the Transfer Agent with the appropriate assignment forms completed and the signature of the registered owner Medallion guaranteed by a bank or member firm of The New York Stock Exchange, Inc.
Question 9: Can you send my dividend checks directly to my bank?
Yes, provide the Transfer Agent with your bank's name, your branch's mailing address and your account number at your bank. Dividends may also be directly deposited by electronic transfer through the Transfer Agent. To register, you may do so online at AMSTOCK. You will need your account number and social security number to access your account. You may also register by calling (877) 260-8188.
Question 10: Who do I notify of a change of address?
The Transfer Agent.
Question 11: We go to Florida (Arizona) every winter. How do we get our mail from Adams Express?
The Transfer Agent can program a seasonal address into its system; simply send the temporary address and the dates you plan to be there to the Transfer Agent.
Question 12: I want to give shares to my children, grandchildren, etc. as a gift. How do I go about it?
Giving shares of Adams Express is simple and is handled through our Transfer Agent. The stock transfer rules, designed to protect you, are clear and precise for most forms of transfer. They will vary slightly depending on each transfer, so write to the Transfer Agent stating the exact intent of your gift plans and the Transfer Agent will send you the instructions and forms necessary to effect your transfer.