Adams Express Company is a closed end investment company that is more than 75 years old, trading on the New York Stock Exchange under the symbol ADX. I have written before about ADX and recently wrote about its sister fund, Petroleum and Resources (NYSE:PEO).
ADX buys and holds quality large-cap stocks and maintains a very stable portfolio, with minimal trading. It presently sells at over a 13% discount from net asset value, which only makes it more appealing. You could use ADX to replace the large-cap section of your portfolio.
It should be noted that Erik K. Bergstrom, who has no affiliation with the fund, has owned 9.2% of the outstanding shares. ADX owns in excess of 8% of the shares of its sister fund, Petroleum and Resources .
As of December 31, 2013, its 10 largest holdings constituted 23.3% of its total portfolio. These holdings are as follows:
|Petroleum & Resources||4.5%|
|JP Morgan Chase||2.3|
|AT & T||1.6|
As of December 31, 2012, ADX had assets of $1,155,997,037. with leverage of 0.3% and almost no short-term assets. ADX is involved in an option writing and selling program which constitutes about 1.5% of assets. ADX had a cost basis in its common stock holdings of $1,010,947,838 which had a market value of $1,153,761,081. ADX has a broadly diversified portfolio.
The 5 year ratios show a fund with decent performance, a very low expense ratio, decent income and moderate turnover. These figures are as follow:
|Market Price Return||NAV Return||Expense Ratio||Income||Turnover|
The fund, like its sister PEO, has a managed distribution program of 6% of net assets annually. Management feels that its long-term shareholders require a steady source of income. Many individual families can trace their ownership of ADX back five generations.
This a quality fund which should be part of everyone's portfolio, especially when purchased at a substantial discount.