Adams Natural Resources Fund Reports Nine Month Results

Rhea-AI Summary

Adams Natural Resources Fund (NYSE: PEO) reported a -36.8% total return on net asset value (NAV) for the nine months ending September 30, 2020, marginally outperforming its benchmark's -37.4%. Over the past year, the fund's total return was -33.5%, compared to -33.8% for its benchmark. The market price of shares fell -39.1% during the nine months, while a tender offer boosted NAV per share by $0.16. The fund has net assets of $275.79 million and repurchased shares at a significant 17.3% discount.

Positive

• Repurchased 97,342 shares at an average price of $7.56, increasing NAV per share by $0.01.
• Completed a tender offer for 5,955,676 shares (20% of outstanding) at a 5% discount to NAV, raising NAV per share by $0.16.
• Outperformed benchmark with a NAV return of -36.8%, compared to -37.4% for the benchmark over the same period.

Negative

• Total return on market price of shares declined by 39.1% over the last nine months.
• Net assets decreased from $554.89 million (Sept 30, 2019) to $275.79 million (Sept 30, 2020).
• NAV per share decreased from $18.79 (Sept 30, 2019) to $11.58 (Sept 30, 2020).

BALTIMORE, Oct. 15, 2020 /PRNewswire/ -- Adams Natural Resources Fund, Inc. (NYSE: PEO) today announced the Fund's results for the nine months ended September 30^th. The total return on Adams Natural Resources' net asset value, with dividends and capital gains reinvested, was -36.8%. This compares to a total return of -37.4% for the Fund's benchmark, which is comprised of the S&P 500 Energy Sector (80% weight) and the S&P 500 Materials Sector (20% weight), over the same period. The total return on the market price of the Fund's shares for the period was -39.1%.

For the twelve months ended September 30^th, the total return on Adams Natural Resources' net asset value, with dividends and capital gains reinvested, was -33.5%. Comparable return for the Fund's benchmark was -33.8%. The total return on the market price of the Fund's shares for the period was -33.4%.

"It has been a difficult year for Energy stocks and the third quarter was, unfortunately, no different. The fallout from the pandemic impacted the Energy sector significantly," said Mark Stoeckle, CEO of Adams Funds. "Our investments in the Materials sector helped offset the weakness in Energy."

NET ASSET VALUE
	9/30/2020	9/30/2019
Net assets	$275,792,627	$554,887,477
Shares outstanding	23,822,808	29,534,397
Net asset value per share	$11.58	$18.79

 

The Fund repurchased 97,342 shares of its common stock during the past nine months at an average price per share of $7.56 and a weighted average discount to NAV of 17.3%, resulting in a $.01 increase to NAV per share. Additionally, the Fund purchased 5,955,676 shares (20% of outstanding) through a tender offer at a 5% discount to NAV, resulting in a $.16 increase to NAV per share.

The Third Quarter Report to Shareholders is expected to be available on or about October 20, 2020.

###

Since 1929, Adams Funds has consistently helped generations of investors reach their investment goals. Adams Funds is comprised of two closed-end funds, Adams Diversified Equity Fund, Inc. (NYSE: ADX) and Adams Natural Resources Fund, Inc. (NYSE: PEO). The Funds are actively managed by an experienced team with a disciplined approach and have paid dividends for more than 80 years across many market cycles. The Funds are committed to paying an annual distribution rate of 6% or more, providing reliable income to long-term investors. Shares can be purchased through our transfer agent or through a broker. For more information about Adams Funds, please visit: adamsfunds.com.

Contact:
Lyn Walther
Director of Shareholder Communications
800.638.2479 │ walther@adamsfunds.com

 

View original content to download multimedia:http://www.prnewswire.com/news-releases/adams-natural-resources-fund-reports-nine-month-results-301153672.html

SOURCE Adams Funds

FAQ

What were the total returns for Adams Natural Resources Fund (PEO) for the nine months ending September 30, 2020?

The total return on Adams Natural Resources' net asset value was -36.8% for the nine months ended September 30, 2020.

How did the performance of Adams Natural Resources Fund compare to its benchmark?

Adams Natural Resources Fund outperformed its benchmark, which returned -37.4% during the same period.

What was the market price return for Adams Natural Resources Fund (PEO) shares in the last nine months?

The market price return for the Fund's shares was -39.1% over the nine months ending September 30, 2020.

What are the current net assets of Adams Natural Resources Fund (PEO)?

As of September 30, 2020, the net assets of Adams Natural Resources Fund were $275.79 million.

What increase did the tender offer provide to the NAV per share of Adams Natural Resources Fund?

The tender offer increased the NAV per share by $0.16.