IndexAbout Savings PlanParticipating in the Savings PlanSavings Plan AccountYour Contributions and the Company MatchInvestment Options- ExxonMobil Stock - General Information About Indexed Funds - Equity Units - Extended Market Units - International Equity Units - Bond Units - Balanced Fund Units - Common Assets - Additional Information Investment ConsiderationsImplementing Investment DecisionsChanging How Your Money Is InvestedAccessing Your MoneyLoansWithdrawalsDistributionsInformation for Participants Who Worked for Mobil CorporationInformation for Participants Who Worked for Paxon or AESTax ConsiderationsAdministrative and ERISA InformationSecurities and Exchange Commission (SEC) InformationKey TermsSavings Plan Account Features |
For a discussion of applicable risks, see the Investment Considerations section on page 21. Descriptions of each investment option in the Savings Plan are provided over the next several pages. When you buy Exxon Mobil Corporation Common Stock (ExxonMobil stock), you become an ExxonMobil shareholder and an owner of the company. As an owner of ExxonMobil stock, you may direct how your shares are voted. Any dividends on shares of stock in your Savings Plan account are credited as of the dividend payment date. These dividends are reinvested automatically in ExxonMobil stock unless you elect to have the dividends paid to you directly in cash (see page 30). Remember, investing in a single security typically carries higher potential risk than investing in a variety of securities (e.g., stocks and bonds). Be sure to consider balancing your portfolio with the other investments in the Savings Plan.
Participants’ purchase and sell orders may be offset against each other and the net number of shares may be purchased or sold in separate transactions or as a pooled transaction. This results in lower transaction costs for trades involving ExxonMobil stock. Such purchases and sales may be made in the open market, in privately negotiated transactions, or from/to Exxon Mobil Corporation to the extent it elects to sell or purchase such shares. Prices for open market or private transactions reflect market pricing. Prices for purchases cannot exceed, and prices for sales cannot be below, the then-current market value of the shares. The price of any purchase from or sale to Exxon Mobil Corporation is the volume-weighted average price per share of ExxonMobil stock on the New York Stock Exchange (NYSE) composite tape on the transaction day. Brokerage commissions, or other fees incurred on purchases or sales of ExxonMobil stock made in the open market, are included as a part of the cost of the purchase or sale transaction. Brokers are selected on the basis of execution ability. No brokerage commissions are paid on shares purchased from or sold to Exxon Mobil Corporation. While investment instructions are executed promptly, purchases and sales may be executed over a period of days depending on market conditions and any legal restrictions.
About Northern Trust Investments (NT) and The Savings Plan Determining Unit Values Making Investments Fund Expenses (Effective July 1, 2010)
You have the right to know of any operating expenses that reduce the rate of return and the total amount of these expenses expressed as a percentage of average net assets. These have been described in this SPD. If any additional expenses occur, you will be advised. Equity Units represent an interest in a fund managed to closely approximate the total rate of return of the S&P 500. This index is composed of 500 mostly large-capitalization stocks weighted by market value, and currently represents about 75% - 80% of the market value of all publicly traded U.S. common stocks. It is a widely used benchmark of the market performance of major publicly traded U.S. stocks. To pursue its goal of closely approximating the performance of the S&P 500, NT invests the fund's assets in a broadly diversified portfolio consisting primarily of the 500 stocks represented in the actual S&P 500. The S&P 500 excludes non-U.S. stocks. Extended Market Units represent an interest in a fund managed to closely approximate the total rate of return of the Dow Jones Wilshire 4500 ex LP Index, which is generally composed of all readily available, publicly traded U.S. stocks not included in the S&P 500. These stocks are mostly small- and mid-capitalization stocks representing about 20% - 25% of the market value of all publicly traded U.S. common stocks. Because of the costs involved and the liquidity of many of the securities, NT does not hold all of the stocks represented in this index. Instead, NT analyzes the characteristics of this index that explain the index's risk and return. NT uses the results of this statistical analysis to select securities for the NT Extended Market Unit Fund that collectively match as closely as possible the risk and return characteristics of the index. Since the NT Extended Market Unit Fund uses this strategy, the weightings of the securities held in the fund will not match precisely the market capitalization weights of the index.
International Equity Units represent an interest in an index fund that invests in approximately 1,100 international equity securities composed of approximately the top 85% of market capitalization in 21 developed countries outside North America. The fund is managed to closely approximate the total rate of return of the Morgan Stanley Capital International EAFE (Europe, Australasia, and Far East) (Free) Index. The rate of return on this fund should approximate the weighted average return for all traded stocks that are "free" to be owned by foreign investors in these countries. Bond Units represent an interest in an index fund based on a broad range of publicly traded, investment grade U.S. bonds. This fund is composed of a portfolio of bonds managed to closely approximate the total rate of return of the Barclays Capital Aggregate Bond Index. This broad index tracks approximately 8,000 publicly traded, investment grade, U.S. fixed income securities. Since this index represents short, medium and long-term bonds, the average maturity is longer than for investments held in the Common Assets Portfolio. For comparison purposes, the average maturity of bonds in this fund is approximately seven years, while in Common Assets, it is about 12 months. Balanced Fund Units are designed to generate returns from both income and growth for the investor through a broadly diversified investment in domestic and international stocks and U.S. bonds. Specifically, each Balanced Fund Unit represents an interest in a portfolio (the "Balanced Fund Portfolio") invested in the following proportions in the four index funds indicated in the chart below:
Each of the underlying investments making up the Balanced Fund Portfolio is separately available as an investment option in the Savings Plan. In order to maintain the fund's composition, NT reviews the value of the four funds that make up the Balanced Fund Portfolio on a monthly basis and, if needed, adjusts their representation in the portfolio back to the approximate percentages indicated above.
The Common Assets fund is a short- and medium-term fixed-income fund managed by an ExxonMobil subsidiary in accordance with standards set by the Trustee. The subsidiary targets maintaining a weighted average portfolio maturity of approximately one year. This average maturity is longer than that of money market funds, which are restricted to average maturities of 90 days or less, but shorter than Bond Units, which have an average maturity of approximately 8 years. Investments in this fund are made in over one hundred high-quality, fixed-income securities typically consisting of asset-backed and mortgage-backed obligations; corporate, U.S. government agency, and bank securities; guaranteed investment contracts; and other high-quality obligations, including U.S. government-issued, Series-I (inflation-adjusted) Savings Bonds. A portion of the Common Assets fund is invested in loans to participants.
The Common Assets fund is managed with a target of maintaining a constant $1.00 per unit price. Although the Common Assets fund has maintained a constant unit price since its inception (and is thus considered a relatively conservative investment choice), there can be no assurance that it will always be able to do so (meaning you could lose money). The underlying assets in participants’ accounts are valued on the basis of cost rather than market value, which means the asset value does not include unrealized gains and losses. Any investment earnings on Common Assets are posted to participants’ Savings Plan accounts as of the end of each quarter and are reinvested in Common Assets. Earnings on Common Assets include accrued income and realized gains and losses. These earnings are shared proportionally by participants based on the average daily Common Assets balance in their Savings Plan accounts during that quarter. Common Assets investments are made as soon as practical after funds are available. All expenses of managing Common Assets are borne by the company except for certain investment management fees of approximately 0.01% that are borne by the fund. By writing to the Savings Plan Administrator (see page 53), you may request a list of the assets that make up the Common Assets fund. Participants receive periodic reports on the performance of the Savings Plan's investment options. See page 55 for historical performance information for the three years through year-end 2009. To help you keep track of changes in your Savings Plan Account, you will automatically receive:
You also will be notified of any significant changes to the Savings Plan. The Savings Plan Web site at http://xomsavings.ingplans.com and the Savings Telephone Service (STS) at 877-966-4015 are available for account information and transactions.
|
