Welcome to Petroleum & Resources Corporation.
Many of your investors know they should diversify their portfolios. You may have suggested adding the energy and materials sectors, which have generated above average returns over multi-year periods. But, once your investor has shown an interest, what’s the sensible energy sector investment for them? That’s where we come in.
Ours is an actively managed fund, which allows us to be more diversified than an index-based energy sector ETF. Our in-house analysts and portfolio managers work together to identify the best long-term investment opportunities in the sector, which includes calibrating the size of our holdings in the major multi-nationals that dominate the sector to generate the risk-adjusted returns that we seek. This hands-on approach also allows us to find new opportunities, sometimes in emerging fields that have real long-term financial and investment viability.
Since we are organized as a closed-end fund, we can make portfolio decisions without being limited by untimely inflows and outflows of investor dollars. This allows us to take a long-term view – we have held onto our investments for an average of eight years – and contributes to the Fund’s low portfolio turnover rate, roughly 13% a year.
The results? Here’s an example - - if you had invested $10,000 in PEO on December 31, 1994, your investment at the end of 2008 had grown to a total net asset value of $37,482 (with dividends and capital gains reinvested). Also consider this, we have paid dividends to our shareholders every year since 1934 and our annual rate of distributions of dividends and realized capital gains to our shareholders has averaged 7.2% over the past 15 years. So when your investors wonder what the best step should be, consider using Petroleum & Resources as the way to build a prudent, sound exposure to the energy sector.
Click here for information about the Fund's Performance.
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Click here to view our recent and archived Financial Reports.