Questions New Investors Often Ask?
1. How long has Petroleum & Resources been in existence?
2. How does the Corporation make its investment decisions?
3. Do the Corporation'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 Petroleum & Resources offers?
6. How do I invest in Petroleum & Resources?
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?
1. HOW LONG HAS PETROLEUM & RESOURCES BEEN IN EXISTENCE?
The Corporation was founded as a closed-end investment company in January of 1929 and has operated as a closed-end fund since then. It has weathered the Depression, World War II, the Cold War, disco and all of ups and downs in the market during for the past 78 years.
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2. HOW DOES THE CORPORATION MAKE ITS INVESTMENT DECISIONS?
The Corporation 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 energy and natural resources investments that offer long-term earnings growth at a reasonable price. A team of two portfolio managers reviews the analysts' recommendations and decides which stocks to purchase, and, as importantly, which to sell.
Petroleum's daily trading is shown in the stock tables of most daily newspapers, usually with the abbreviated form "PetRs." Local newspapers determine, usually by volume of traded shares, which securities to list. If your paper does not carry our listing, please telephone the Corporation at (800) 638-2479 or visit our website.
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3. DO THE CORPORATION'S SHARES TRADE AT A DISCOUNT OR PREMIUM? IF SO, HOW DO I FIND OUT WHAT THAT IS?
As a closed-end fund, the Corporation's shares are publicly traded on a stock exchange. In our case, we are listed on the New York Stock Exchange and the Pacific Exchange, under the ticker symbol PEO. 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 1992. 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 XPEOX.
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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 .60%, while the average U. S. diversified mutual fund had an expense ratio of 1.43%.
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5. WHAT ARE THE FEATURES THAT AN INVESTMENT IN PETROLEUM & RESOURCES OFFERS?
Although each investor's particular financial needs, goals, and time frame are different, we believe that Petroleum & Resources is suitable for investors who seek a broadly diversified exposure to the energy sector. Among the features that we suggest the Fund offers are:
- Broad diversification within the energy and natural resources sectors
- The only closed-end fund which specializes in the energy and natural resources sectors
- Low expenses
- Low portfolio turnover
- An experienced team of portfolio managers who have been running the fund together for over 21 years
- Consistent dividend and capital gains payouts
- Conservative investment philosophy
- The ability to invest and reinvest at a discount
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6. HOW DO I INVEST IN PETROLEUM & RESOURCES?
Petroleum & Resources common stock is listed on the New York Stock Exchange. The stock's ticker symbol is "PEO" and may be bought and sold through registered investment security dealers. Your broker will be able to assist you in this regard. 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).
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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.peteres.com. 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.
Petroleum's daily trading is shown in the stock tables of most daily newspapers, usually with the abbreviated form "PetRs." Local newspapers determine, usually by volume of traded shares, which securities to list. If your paper does not carry our listing, please telephone the Corporation at (800) 638-2479 or visit our website.
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8. HOW DO I REPLACE A LOST CERTIFICATE(S) OR HOW DO CORRECT A SPELLING ERROR ON MY CERTIFICATE?
Your Petroleum 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 it covers at the time acquired. If a certificate is lost, destroyed or stolen, notify the transfer agent 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 the receipt of an affidavit regarding the loss 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.
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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. (Sorry, the Bank cannot electronically transfer funds at this time.)
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10. WHO DO I NOTIFY OF A CHANGE OF ADDRESS?
The Transfer Agent.
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11. WE GO TO FLORIDA (ARIZONA) EVERY WINTER. HOW DO WE GET OUR MAIL FROM PETROLEUM & RESOURCES?
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.
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12. I WANT TO GIVE SHARES TO MY CHILDREN, GRANDCHILDREN, ETC. AS A GIFT. HOW DO I GO ABOUT IT?
Giving shares of Petroleum is simple and is handled through our Transfer Agent. The stock transfer rules, designed to protect you, the investor, 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 Agent will send you the instructions and forms necessary to effect your transfer.
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