We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
Adams Diversified Equity Fund Inc | NYSE:ADX | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
-0.4607 | -2.34% | 19.2093 | 19.83 | 19.68 | 19.71 | 160,181 | 01:00:00 |
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment
Company Act file number: 811-00248
-------------------------------------------------------------------------
ADAMS
DIVERSIFIED EQUITY FUND, INC.
-------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
500
East Pratt Street, Suite 1300, Baltimore, Maryland 21202
-------------------------------------------------------------------------
(Address of principal executive offices)
Janis
F. Kerns
Adams Diversified Equity Fund, Inc.
500 East Pratt Street, Suite 1300
Baltimore, Maryland 21202
-------------------------------------------------------------------------
(Name and address of agent for service)
Registrant's telephone
number, including area code: (410) 752-5900
Date of fiscal year end: December 31
Date of reporting period: December 31, 2023
Item 1. Reports to Stockholders.
| NYSE Symbol | | |
ADX
|
|
| Market Price | | |
$17.71
|
|
| 52-Week Range | | |
$14.36 – $17.93
|
|
| Discount | | |
13.9%
|
|
| Shares Outstanding | | |
124,051,639
|
|
Year Ended December 31,
|
| |
2023
|
| |
2022
|
| ||||||
Net asset value per share (NASDAQ: XADEX) | | | | $ | 20.56 | | | | | $ | 17.38 | | |
Total net assets | | | | | 2,550,393,350 | | | | | | 2,100,737,733 | | |
Average net assets | | | | | 2,332,376,642 | | | | | | 2,304,154,812 | | |
Unrealized appreciation on investments | | | | | 1,050,536,379 | | | | | | 657,315,319 | | |
Net investment income | | | | | 21,016,306 | | | | | | 22,535,878 | | |
Net realized gain (loss) | | | | | 138,684,371 | | | | | | 103,877,401 | | |
Total return (based on market price) | | | | | 31.2% | | | | | | -19.8% | | |
Total return (based on net asset value) | | | | | 27.5% | | | | | | -17.3% | | |
Ratio of expenses to average net assets | | | | | 0.61% | | | | | | 0.54% | | |
Annual distribution rate | | | | | 8.1% | | | | | | 6.3% | | |
Paid
|
| |
Amount
(per share)
|
| |
Type
|
| |||
March 1, 2023 | | | | $ | 0.02 | | | |
Long-term capital gain
|
|
March 1, 2023 | | | | | 0.03 | | | | Investment income | |
June 1, 2023 | | | | | 0.05 | | | | Investment income | |
September 1, 2023 | | | | | 0.05 | | | | Investment income | |
December 20, 2023 | | | | | 1.13 | | | |
Long-term capital gain
|
|
December 20, 2023 | | | | | 0.02 | | | | Investment income | |
| | | | $ | 1.30 | | | | | |
| |
Average Annual Total Returns at 12/31/23
|
| | ||||||||||||||||||||||||
| | | | |
Years
|
| | |||||||||||||||||||||
| | | | |
1
|
| |
3
|
| |
5
|
| |
10
|
| | ||||||||||||
| | ADX Market Price | | | | | 31.2% | | | | | | 11.0% | | | | | | 16.8% | | | | | | 12.7% | | | |
| | S&P 500 Index | | | | | 26.3% | | | | | | 10.0% | | | | | | 15.7% | | | | | | 12.0% | | | |
| | Morningstar U.S. Large Blend Category | | | | | 24.1% | | | | | | 8.9% | | | | | | 14.5% | | | | | | 10.7% | | | |
| | |
Market Value
|
| |
Percent
of Net Assets |
| ||||||
Microsoft Corporation | | | | $ | 199,978,072 | | | | 7.8% | | | ||
Apple Inc. | | | | | 168,290,473 | | | | 6.6 | | | ||
Amazon.com, Inc. | | | | | 104,018,124 | | | | 4.1 | | | ||
Alphabet Inc. Class A | | | | | 91,161,694 | | | | 3.6 | | | ||
NVIDIA Corporation | | | | | 79,779,942 | | | | 3.1 | | | ||
JPMorgan Chase & Co. | | | | | 51,772,146 | | | | 2.0 | | | ||
Visa Inc. Class A | | | | | 50,810,166 | | | | 2.0 | | | ||
Meta Platforms, Inc. Class A | | | | | 50,085,340 | | | | 2.0 | | | ||
UnitedHealth Group Incorporated | | | | | 47,698,182 | | | | 1.9 | | | ||
Adams Natural Resources Fund, Inc.* | | | | | 45,113,148 | | | | 1.8 | | | ||
| | | $ | 888,707,287 | | | | 34.9% | | |
| Assets | | | | | | | | | | | | | |
| Investments at value*: | | | | | | | | | | | | | |
|
Common stocks:
|
| | | | | | | | | | | | |
|
Unaffiliated issuers (cost $1,450,717,842)
|
| | | $ | 2,489,792,426 | | | | | | | | |
|
Non-controlled affiliate (cost $33,970,033)
|
| | | | 45,113,148 | | | | | | | | |
|
Other investment in controlled affiliate (cost $150,000)
|
| | | | 466,000 | | | | | | | | |
|
Short-term investments (cost $14,683,234)
|
| | | | 14,685,914 | | | | | $ | 2,550,057,488 | | |
| Cash | | | | | | | | | | | 253,147 | | |
| Investment securities sold | | | | | | | | | | | 5,850,669 | | |
| Dividends receivable | | | | | | | | | | | 1,745,586 | | |
| Prepaid expenses and other assets | | | | | | | | | | | 3,498,570 | | |
|
Total Assets
|
| | | | | | | | | | 2,561,405,460 | | |
| | | | | | | | | | | | | | |
| Liabilities | | | | | | | | | | | | | |
| Investment securities purchased | | | | | | | | | | | 2,570,980 | | |
| Due to officers and directors (note 8) | | | | | | | | | | | 4,339,777 | | |
| Accrued expenses and other liabilities | | | | | | | | | | | 4,101,353 | | |
|
Total Liabilities
|
| | | | | | | | | | 11,012,110 | | |
|
Net Assets
|
| | | | | | | | | $ | 2,550,393,350 | | |
| | | | | | | | | | | | | | |
| Net Assets | | | | | | | | | | | | | |
|
Common Stock at par value $0.001 per share, authorized 150,000,000 shares; issued and outstanding 124,051,639 shares (includes 24,022 deferred stock units) (note 7)
|
| | | | | | | | | $ | 124,052 | | |
| Additional capital surplus | | | | | | | | | | | 1,498,700,204 | | |
| Total distributable earnings (loss) | | | | | | | | | | | 1,051,569,094 | | |
|
Net Assets Applicable to Common Stock
|
| | | | | | | | | $ | 2,550,393,350 | | |
|
Net Asset Value Per Share of Common Stock
|
| | | | | | | | | $ | 20.56 | | |
| Investment Income | | | | | | ||
|
Income:
|
| | | | | ||
|
Dividends (includes $1,487,006 from affiliates and net of $6,388 in foreign taxes)
|
| | | $ | 34,352,078 | ||
|
Other income
|
| | | | 788,280 | ||
|
Total Income
|
| | | | 35,140,358 | ||
|
Expenses:
|
| | | | | ||
|
Investment research compensation and benefits
|
| | | | 7,543,718 | ||
|
Administration and operations compensation and benefits
|
| | | | 2,920,168 | ||
|
Occupancy and other office expenses
|
| | | | 787,394 | ||
|
Investment data services
|
| | | | 770,281 | ||
|
Directors’ compensation
|
| | | | 418,500 | ||
|
Shareholder reports and communications
|
| | | | 388,522 | ||
|
Transfer agent, custody, and listing fees
|
| | | | 363,234 | ||
|
Accounting, recordkeeping, and other professional fees
|
| | | | 378,260 | ||
|
Insurance
|
| | | | 171,335 | ||
|
Audit and tax services
|
| | | | 136,321 | ||
|
Legal services
|
| | | | 246,319 | ||
|
Total Expenses
|
| | | | 14,124,052 | ||
|
Net Investment Income
|
| | | | 21,016,306 | ||
| | | | | | | ||
| Realized Gain (Loss) and Change in Unrealized Appreciation | | | | | | ||
|
Net realized gain (loss) on investments
|
| | | | 136,001,271 | ||
|
Net realized gain (loss) on total return swap agreements
|
| | | | 1,217,961 | ||
|
Net realized gain distributed by non-controlled affiliate
|
| | | | 1,465,139 | ||
|
Change in unrealized appreciation on investments (includes $(2,558,526) from affiliates)
|
| | | | 393,221,060 | ||
|
Net Gain (Loss)
|
| | |
|
531,905,431
|
||
| Change in Net Assets from Operations | | | |
$
|
552,921,737
|
| | |
For the Year Ended December 31,
|
| |||||||||
|
2023
|
| |
2022
|
| ||||||||
From Operations: | | | | | | | | | | ||||
Net investment income
|
| | | $ | 21,016,306 | | | $ | 22,535,878 | ||||
Net realized gain (loss)
|
| | | | 138,684,371 | | | | 103,877,401 | ||||
Change in unrealized appreciation
|
| | | | 393,221,060 | | | | (597,537,747) | | | ||
Change in Net Assets from Operations
|
| | |
|
552,921,737
|
| |
|
(471,124,468)
|
| | ||
| | | | | | | | | | ||||
Distributions to Shareholders from:
Total distributable earnings
|
| | | | (157,056,009) | | | | | | (126,124,720) | | |
| | | | | | ||||||||
From Capital Share Transactions: | | | | | | | | | | ||||
Value of shares issued in payment of distributions (note 5)
|
| | | | 55,202,886 | | | | 45,459,043 | ||||
Cost of shares purchased (note 5)
|
| | | | (1,412,997) | | | | | | — | ||
Change in Net Assets From Capital Share Transactions
|
| | |
|
53,789,889
|
| |
|
45,459,043
|
||||
Total Change in Net Assets
|
| | | | 449,655,617 | | | | (551,790,145) | | | ||
| | | | | | | | | | ||||
Net Assets: | | | | | | | | | | ||||
Beginning of year
|
| | | | 2,100,737,733 | | | | 2,652,527,878 | ||||
End of year
|
| | | $ | 2,550,393,350 | | | $ | 2,100,737,733 |
| | |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| |
Total
|
| ||||||||||||
Assets: | | | | | | | | | | | | | | | | | | | | | | | | | |
Common stocks | | | | $ | 2,534,905,574 | | | | | $ | — | | | | | $ | — | | | | | $ | 2,534,905,574 | | |
Other investments | | | | | — | | | | | | — | | | | | | 466,000 | | | | | | 466,000 | | |
Short-term investments | | | | | 14,685,914 | | | | | | — | | | | | | — | | | | | | 14,685,914 | | |
Total investments | | | | $ | 2,549,591,488 | | | | | $ | — | | | | | $ | 466,000 | | | | | $ | 2,550,057,488 | | |
| | | | | |||||||||||||||||||||
The following is a reconciliation of the change in the value of Level 3 investments: | | ||||||||||||||||||||||||
Balance at December 31, 2022 | | | | | | | | | | $ | 466,000 | | | ||||||||||||
Purchases | | | | | | | | | | | — | | | ||||||||||||
Change in unrealized appreciation on investments in the Statement of Operations | | | | | | | | | | | — | | | ||||||||||||
Balance at December 31, 2023 | | | | | | | | | | $ | 466,000 | | |
| | |
Shares
|
| |
Amount
|
| ||||||||||||||||||
| | |
2023
|
| |
2022
|
| |
2023
|
| |
2022
|
| ||||||||||||
Shares issued in payment of distributions | | | | | 3,243,589 | | | | | | 3,028,306 | | | | | $ | 55,202,886 | | | $ | 45,459,043 | | | ||
Shares purchased (at a weighted average discount from net asset value of 15.8% in 2023)
|
| | | | (92,434) | | | | | | — | | | | | | (1,412,997) | | | | | | — | | |
Net change | | | | | 3,151,155 | | | | | | 3,028,306 | | | | | $ | 53,789,889 | | | $ | 45,459,043 | | |
Awards
|
| |
Units
|
| |
Weighted Average
Grant-Date Fair Value |
| ||||||
Balance at December 31, 2022 | | | | | 35,333 | | | | | $ | 13.06 | | |
Reinvested dividend equivalents | | | | | 5,162 | | | | | | 16.43 | | |
Issued | | | | | (16,473) | | | | | | 13.43 | | |
Balance at December 31, 2023 | | | | | 24,022 | | | | | $ | 13.52 | | |
| | |
Year Ended December 31,
|
| |||||||||||||||||||||||||||
|
2023
|
| |
2022
|
| |
2021
|
| |
2020
|
| |
2019
|
| |||||||||||||||||
Per Share Operating Performance | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net asset value, beginning of year | | | | | $17.38 | | | | | | $22.50 | | | | | | $20.06 | | | | | | $17.93 | | | | | | $14.89 | | |
Net investment income | | | | | 0.17 | | | | | | 0.19 | | | | | | 0.17 | | | | | | 0.20 | | | | | | 0.20 | | |
Net realized gain (loss) and change in unrealized appreciation
|
| | | | 4.40 | | | | | | (4.18) | | | | | | 5.42 | | | | | | 3.01 | | | | | | 4.31 | | |
Total from operations | | | | | 4.57 | | | | | | (3.99) | | | | | | 5.59 | | | | | | 3.21 | | | | | | 4.51 | | |
Less distributions from: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income
|
| | | | (0.15) | | | | | | (0.18) | | | | | | (0.20) | | | | | | (0.19) | | | | | | (0.22) | | |
Net realized gain
|
| | | | (1.15) | | | | | | (0.89) | | | | | | (2.78) | | | | | | (0.84) | | | | | | (1.20) | | |
Total distributions | | | | | (1.30) | | | | | | (1.07) | | | | | | (2.98) | | | | | | (1.03) | | | | | | (1.42) | | |
Capital share repurchases (note 5)
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 0.02 | | |
Reinvestment of distributions
|
| | | | (0.09) | | | | | | (0.06) | | | | | | (0.17) | | | | | | (0.05) | | | | | | (0.07) | | |
Total capital share transactions | | | | | (0.09) | | | | | | (0.06) | | | | | | (0.17) | | | | | | (0.05) | | | | | | (0.05) | | |
Net asset value, end of year
|
| | | | $20.56 | | | | | | $17.38 | | | | | | $22.50 | | | | | | $20.06 | | | | | | $17.93 | | |
Market price, end of year | | | | | $17.71 | | | | | | $14.54 | | | | | | $19.41 | | | | | | $17.29 | | | | | | $15.77 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Investment Return (a) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Based on market price
|
| | | | 31.2% | | | | | | -19.8% | | | | | | 29.9% | | | | | | 16.4% | | | | | | 36.6% | | |
Based on net asset value
|
| | | | 27.5% | | | | | | -17.3% | | | | | | 29.8% | | | | | | 18.8% | | | | | | 31.6% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ratios/Supplemental Data | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, end of year (in millions)
|
| | | | $2,550 | | | | | | $2,101 | | | | | | $2,653 | | | | | | $2,227 | | | | | | $1,952 | | |
Ratio of expenses to average net assets
|
| | | | 0.61% | | | | | | 0.54% | | | | | | 0.56% | | | | | | 0.60% | | | | | | 0.65% | | |
Ratio of net investment income to average net assets
|
| | | | 0.90% | | | | | | 0.98% | | | | | | 0.77% | | | | | | 1.12% | | | | | | 1.18% | | |
Portfolio turnover
|
| | | | 63.6% | | | | | | 67.7% | | | | | | 64.4% | | | | | | 58.7% | | | | | | 61.6% | | |
Number of shares outstanding at end of year (in 000’s)
|
| | | | 124,052 | | | | | | 120,900 | | | | | | 117,872 | | | | | | 111,027 | | | | | | 108,865 | | |
| | |
Shares
|
| |
Value (a)
|
| ||||||
Common Stocks — 99.4%
|
| ||||||||||||
Communication Services — 8.6%
|
| ||||||||||||
Alphabet Inc. Class A (b)
|
| | | | 652,600 | | | | | $ | 91,161,694 | | |
Comcast Corporation Class A
|
| | | | 587,700 | | | | | | 25,770,645 | | |
Electronic Arts Inc.
|
| | | | 73,700 | | | | | | 10,082,897 | | |
Meta Platforms, Inc. Class A (b)
|
| | | | 141,500 | | | | | | 50,085,340 | | |
Netflix, Inc. (b)
|
| | | | 52,422 | | | | | | 25,523,223 | | |
Verizon Communications Inc.
|
| | | | 462,800 | | | | | | 17,447,560 | | |
| | | | | 220,071,359 | | | ||||||
Consumer Discretionary — 11.2%
|
| ||||||||||||
Amazon.com, Inc. (b)
|
| | | | 684,600 | | | | | | 104,018,124 | | |
Booking Holdings Inc. (b)
|
| | | | 7,000 | | | | | | 24,830,540 | | |
Home Depot, Inc.
|
| | | | 41,500 | | | | | | 14,381,825 | | |
McDonald’s Corporation
|
| | | | 104,900 | | | | | | 31,103,899 | | |
O’Reilly Automotive, Inc. (b)
|
| | | | 22,800 | | | | | | 21,661,824 | | |
Skechers U.S.A., Inc. Class A (b)
|
| | | | 280,900 | | | | | | 17,511,306 | | |
Tesla, Inc. (b)
|
| | | | 134,700 | | | | | | 33,470,256 | | |
Uber Technologies, Inc. (b)
|
| | | | 357,200 | | | | | | 21,992,804 | | |
Ulta Beauty, Inc. (b)
|
| | | | 31,900 | | | | | | 15,630,681 | | |
| | | | | 284,601,259 | | | ||||||
Consumer Staples — 5.9%
|
| ||||||||||||
Altria Group, Inc.
|
| | | | 316,400 | | | | | | 12,763,576 | | |
Coca-Cola Company
|
| | | | 144,000 | | | | | | 8,485,920 | | |
Colgate-Palmolive Company
|
| | | | 190,800 | | | | | | 15,208,668 | | |
Monster Beverage Corporation (b)
|
| | | | 242,668 | | | | | | 13,980,103 | | |
PepsiCo, Inc.
|
| | | | 47,800 | | | | | | 8,118,352 | | |
Philip Morris International Inc.
|
| | | | 227,435 | | | | | | 21,397,085 | | |
Procter & Gamble Company
|
| | | | 261,449 | | | | | | 38,312,736 | | |
Walmart Inc.
|
| | | | 203,581 | | | | | | 32,094,545 | | |
| | | | 150,360,985 | | | |||||||
Energy — 4.0%
|
| ||||||||||||
Adams Natural Resources Fund, Inc. (c)(f)
|
| | | | 2,186,774 | | | | | | 45,113,148 | | |
Diamondback Energy, Inc.
|
| | | | 90,600 | | | | | | 14,050,248 | | |
Exxon Mobil Corporation
|
| | | | 148,174 | | | | | | 14,814,437 | | |
Marathon Petroleum Corporation
|
| | | | 99,837 | | | | | | 14,811,817 | | |
Pioneer Natural Resources Company
|
| | | | 53,300 | | | | | | 11,986,104 | | |
| | | | 100,775,754 | | |
| | |
Shares
|
| |
Value (a)
|
| ||||||
Financials — 12.9%
|
| ||||||||||||
American International Group, Inc.
|
| | | | 421,600 | | | | | $ | 28,563,400 | | |
Bank of America Corp.
|
| | | | 1,105,368 | | | | | | 37,217,741 | | |
Berkshire Hathaway Inc. Class B (b)
|
| | | | 82,643 | | | | | | 29,475,452 | | |
Chubb Limited
|
| | | | 122,100 | | | | | | 27,594,600 | | |
JPMorgan Chase & Co.
|
| | | | 304,363 | | | | | | 51,772,146 | | |
Mastercard Incorporated Class A
|
| | | | 85,762 | | | | | | 36,578,351 | | |
Morgan Stanley
|
| | | | 347,069 | | | | | | 32,364,184 | | |
S&P Global, Inc.
|
| | | | 78,700 | | | | | | 34,668,924 | | |
Visa Inc. Class A
|
| | | | 195,161 | | | | | | 50,810,166 | | |
| | | | 329,044,964 | | | |||||||
Health Care — 12.6%
|
| ||||||||||||
Becton, Dickinson and Company
|
| | | | 86,300 | | | | | | 21,042,529 | | |
Cencora, Inc.
|
| | | | 140,500 | | | | | | 28,855,890 | | |
DexCom, Inc. (b)
|
| | | | 194,957 | | | | | | 24,192,214 | | |
Elevance Health, Inc.
|
| | | | 39,700 | | | | | | 18,720,932 | | |
Eli Lilly and Company
|
| | | | 63,568 | | | | | | 37,055,059 | | |
IDEXX Laboratories, Inc. (b)
|
| | | | 26,100 | | | | | | 14,486,805 | | |
Johnson & Johnson
|
| | | | 101,200 | | | | | | 15,862,088 | | |
Merck & Co., Inc.
|
| | | | 332,700 | | | | | | 36,270,954 | | |
Regeneron Pharmaceuticals, Inc. (b)
|
| | | | 32,300 | | | | | | 28,368,767 | | |
Thermo Fisher Scientific Inc.
|
| | | | 40,700 | | | | | | 21,603,153 | | |
UnitedHealth Group Incorporated
|
| | | | 90,600 | | | | | | 47,698,182 | | |
Zoetis, Inc. Class A
|
| | | | 135,900 | | | | | | 26,822,583 | | |
| | | | | 320,979,156 | | | ||||||
Industrials — 8.6%
|
| ||||||||||||
Boeing Company (b)
|
| | | | 125,177 | | | | | | 32,628,637 | | |
Generac Holdings Inc. (b)
|
| | | | 92,700 | | | | | | 11,980,548 | | |
Ingersoll Rand Inc.
|
| | | | 267,300 | | | | | | 20,672,982 | | |
Lockheed Martin Corporation
|
| | | | 46,311 | | | | | | 20,989,998 | | |
Quanta Services, Inc.
|
| | | | 119,000 | | | | | | 25,680,200 | | |
Republic Services, Inc.
|
| | | | 148,200 | | | | | | 24,439,662 | | |
Trane Technologies plc
|
| | | | 112,800 | | | | | | 27,511,920 | | |
TransDigm Group Incorporated
|
| | | | 23,900 | | | | | | 24,177,240 | | |
Union Pacific Corporation
|
| | | | 131,100 | | | | | | 32,200,782 | | |
| | | | 220,281,969 | | |
| | |
Shares
|
| |
Value (a)
|
| ||||||
Information Technology — 28.8%
|
| ||||||||||||
Accenture plc Class A
|
| | | | 101,119 | | | | | $ | 35,483,668 | | |
Adobe Inc. (b)
|
| | | | 16,600 | | | | | | 9,903,560 | | |
Advanced Micro Devices, Inc. (b)
|
| | | | 257,400 | | | | | | 37,943,334 | | |
Apple Inc.
|
| | | | 874,100 | | | | | | 168,290,473 | | |
Arista Networks, Inc. (b)
|
| | | | 70,391 | | | | | | 16,577,785 | | |
Cisco Systems, Inc.
|
| | | | 359,400 | | | | | | 18,156,888 | | |
Intuit Inc.
|
| | | | 47,600 | | | | | | 29,751,428 | | |
Lam Research Corporation
|
| | | | 43,700 | | | | | | 34,228,462 | | |
Micron Technology, Inc.
|
| | | | 289,400 | | | | | | 24,697,396 | | |
Microsoft Corporation
|
| | | | 531,800 | | | | | | 199,978,072 | | |
NVIDIA Corporation
|
| | | | 161,100 | | | | | | 79,779,942 | | |
Oracle Corporation
|
| | | | 48,800 | | | | | | 5,144,984 | | |
QUALCOMM Incorporated
|
| | | | 37,600 | | | | | | 5,438,088 | | |
Salesforce, Inc. (b)
|
| | | | 135,700 | | | | | | 35,708,098 | | |
Synopsys, Inc. (b)
|
| | | | 50,100 | | | | | | 25,796,991 | | |
Technology Select Sector SPDR Fund
|
| | | | 41,900 | | | | | | 8,064,912 | | |
| | | | | 734,944,081 | | | ||||||
Materials — 2.3%
|
| ||||||||||||
DuPont de Nemours, Inc.
|
| | | | 133,986 | | | | | | 10,307,543 | | |
Linde plc
|
| | | | 58,100 | | | | | | 23,862,251 | | |
PPG Industries, Inc.
|
| | | | 97,400 | | | | | | 14,566,170 | | |
Teck Resources Limited
|
| | | | 229,400 | | | | | | 9,696,738 | | |
| | | | 58,432,702 | | | |||||||
Real Estate — 2.5%
|
| ||||||||||||
CBRE Group, Inc. Class A (b)
|
| | | | 118,700 | | | | | | 11,049,783 | | |
Digital Realty Trust, Inc.
|
| | | | 123,000 | | | | | | 16,553,340 | | |
Prologis, Inc.
|
| | | | 174,800 | | | | | | 23,300,840 | | |
Public Storage
|
| | | | 43,300 | | | | | | 13,206,500 | | |
| | | | 64,110,463 | | | |||||||
Utilities — 2.0%
|
| ||||||||||||
Atmos Energy Corporation
|
| | | | 97,300 | | | | | | 11,277,070 | | |
CenterPoint Energy, Inc.
|
| | | | 460,600 | | | | | | 13,159,342 | | |
DTE Energy Company
|
| | | | 137,400 | | | | | | 15,149,724 | | |
NextEra Energy, Inc.
|
| | | | 192,900 | | | | | | 11,716,746 | | |
| | | | 51,302,882 | | | |||||||
Total Common Stocks
|
| ||||||||||||
(Cost $1,484,687,875)
|
| | | | | | | | | | 2,534,905,574 | | |
|
| | |
Shares
|
| |
Value (a)
|
| ||||||
Other Investments — 0.0%
|
| ||||||||||||
Financials — 0.0%
|
| ||||||||||||
Adams Funds Advisers, LLC (b)(d)(f)
|
| | | | | | | | | | | ||
(Cost $150,000)
|
| | | | | | | $ | 466,000 | | | ||
Short-Term Investments — 0.6%
|
| ||||||||||||
Money Market Funds — 0.6%
|
| ||||||||||||
Morgan Stanley Institutional Liquidity Funds Prime Portfolio,
5.46% (e) |
| | | | 13,897,050 | | | | 13,903,999 | | | ||
Northern Institutional Treasury Premier Portfolio, 5.21% (e)
|
| | | | 781,915 | | | | 781,915 | | | ||
Total Short-Term Investments
|
| ||||||||||||
(Cost $14,683,234)
|
| | | | | | | | 14,685,914 | | | ||
Total — 100.0%
|
| ||||||||||||
(Cost $1,499,521,109)
|
| | | | | | | | 2,550,057,488 | | | ||
Other Assets Less Liabilities — 0.0% | | | | | | | | | 335,862 | | | ||
Net Assets — 100.0% | | | | | | | |
$
|
2,550,393,350
|
| | ||
|
|
Affiliate
|
| |
Shares held
|
| |
Net realized gain
(loss) and capital gain distributions |
| |
Dividend
income |
| |
Change in
unrealized appreciation |
| |
Value
|
| |||||||||||||||
| Adams Funds Advisers, LLC (controlled) | | | | | n/a | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 466,000 | | |
| Adams Natural Resources Fund, Inc. (non-controlled) | | | | | 2,186,774 | | | | | | 1,465,139 | | | | | | 1,487,006 | | | | | | (2,558,526) | | | | | | 45,113,148 | | |
| Total | | | | | | | | | | $ | 1,465,139 | | | | | $ | 1,487,006 | | | | | $ | (2,558,526) | | | | | $ | 45,579,148 | | |
| | |
Dollar Amount Traded
in the Period |
| |
Percent of Net Assets
Held at Period-End |
| ||||||
Additions | | | | | | | | | | | | | |
McDonald’s Corporation
|
| | | $ | 31,016,423 | | | | | | 1.2% | | |
Salesforce, Inc.
|
| | | | 30,955,450 | | | | | | 1.4 | | |
S&P Global, Inc.
|
| | | | 30,507,298 | | | | | | 1.4 | | |
American International Group, Inc.
|
| | | | 24,752,872 | | | | | | 1.1 | | |
Zoetis, Inc. Class A
|
| | | | 23,377,885 | | | | | | 1.1 | | |
Trane Technologies plc
|
| | | | 23,260,202 | | | | | | 1.1 | | |
Synopsys, Inc.
|
| | | | 22,024,836 | | | | | | 1.0 | | |
Republic Services, Inc.
|
| | | | 21,765,297 | | | | | | 1.0 | | |
Bank of America Corp.
|
| | | | 21,040,948* | | | | | | 1.5 | | |
Amazon.com, Inc.
|
| | | | 18,964,327* | | | | | | 4.1 | | |
Elevance Health, Inc.
|
| | | | 17,958,847 | | | | | | 0.7 | | |
Advanced Micro Devices, Inc.
|
| | | | 17,048,797* | | | | | | 1.5 | | |
DTE Energy Company
|
| | | | 15,029,046 | | | | | | 0.6 | | |
Skechers U.S.A., Inc. Class A
|
| | | | 14,908,852 | | | | | | 0.7 | | |
Ulta Beauty, Inc.
|
| | | | 12,880,285 | | | | | | 0.6 | | |
| | | | | | | | | | | | | |
Reductions | | | | | | | | | | | | | |
Wells Fargo & Company
|
| | | | 30,473,314 | | | | | | — | | |
Abbott Laboratories
|
| | | | 25,310,989 | | | | | | — | | |
Carrier Global Corporation
|
| | | | 23,071,138 | | | | | | — | | |
TJX Companies, Inc.
|
| | | | 23,055,188 | | | | | | — | | |
Willis Towers Watson plc
|
| | | | 22,258,051 | | | | | | — | | |
Manhattan Associates, Inc.
|
| | | | 21,659,596 | | | | | | — | | |
Charles Schwab Corp.
|
| | | | 20,928,913 | | | | | | — | | |
Tractor Supply Company
|
| | | | 19,674,140 | | | | | | — | | |
ANSYS, Inc.
|
| | | | 17,839,731 | | | | | | — | | |
Allegion plc
|
| | | | 16,144,601 | | | | | | — | | |
T. Rowe Price Group, Inc.
|
| | | | 15,643,971 | | | | | | — | | |
YUM! Brands, Inc.
|
| | | | 15,632,614 | | | | | | — | | |
CVS Health Corporation
|
| | | | 15,011,633 | | | | | | — | | |
PPL Corporation
|
| | | | 14,945,009 | | | | | | — | | |
Apple Inc.
|
| | | | 14,716,540 | | | | | | 6.6 | | |
Arista Networks, Inc.
|
| | | | 13,460,549 | | | | | | 0.7 | | |
QUALCOMM Incorporated
|
| | | | 13,431,194 | | | | | | 0.2 | | |
Las Vegas Sands Corp.
|
| | | | 12,980,770 | | | | | | — | | |
Year
|
| |
(000’s)
Value of Net Assets |
| |
(000’s)
Shares Outstanding |
| |
Net Asset
Value Per Share |
| |
Market
Value Per Share |
| |
Income
Dividends Per Share |
| |
Capital
Gains Distributions Per Share |
| |
Return of
Capital Distributions Per Share |
| |
Total
Dividends and Distributions Per Share |
| |
Annual
Distribution Rate* |
| |||||||||||||||||||||||||||
2009 | | | | $ | 1,045,027 | | | | | | 87,415 | | | | | $ | 11.95 | | | | | $ | 10.10 | | | | | $ | .15 | | | | | $ | .30 | | | | | $ | — | | | | | $ | .45 | | | | | | 5.2% | | |
2010 | | | | | 1,124,672 | | | | | | 88,885 | | | | | | 12.65 | | | | | | 10.72 | | | | | | .14 | | | | | | .37 | | | | | | — | | | | | | .51 | | | | | | 5.1 | ||
2011 | | | | | 1,050,734 | | | | | | 91,074 | | | | | | 11.54 | | | | | | 9.64 | | | | | | .15 | | | | | | .50 | | | | | | — | | | | | | .65 | | | | | | 6.1 | ||
2012 | | | | | 1,155,997 | | | | | | 93,030 | | | | | | 12.43 | | | | | | 10.59 | | | | | | .18 | | | | | | .49 | | | | | | — | | | | | | .67 | | | | | | 6.3 | ||
2013 | | | | | 1,421,551 | | | | | | 94,224 | | | | | | 15.09 | | | | | | 13.07 | | | | | | .22 | | | | | | .62 | | | | | | — | | | | | | .84 | | | | | | 7.1 | ||
2014 | | | | | 1,527,773 | | | | | | 96,287 | | | | | | 15.87 | | | | | | 13.68 | | | | | | .20 | | | | | | .98 | | | | | | — | | | | | | 1.18 | | | | | | 8.8 | ||
2015 | | | | | 1,472,144 | | | | | | 97,914 | | | | | | 15.04 | | | | | | 12.83 | | | | | | .14 | | | | | | .79 | | | | | | — | | | | | | .93 | | | | | | 6.8 | ||
2016 | | | | | 1,513,498 | | | | | | 99,437 | | | | | | 15.22 | | | | | | 12.71 | | | | | | .18 | | | | | | .81 | | | | | | — | | | | | | .99 | | | | | | 7.8 | ||
2017 | | | | | 1,785,772 | | | | | | 101,736 | | | | | | 17.55 | | | | | | 15.03 | | | | | | .22 | | | | | | 1.16 | | | | | | — | | | | | | 1.38 | | | | | | 9.8 | ||
2018 | | | | | 1,580,889 | | | | | | 106,206 | | | | | | 14.89 | | | | | | 12.62 | | | | | | .21 | | | | | | 1.79 | | | | | | — | | | | | | 2.00 | | | | | | 12.9 | ||
2019 | | | | | 1,951,592 | | | | | | 108,865 | | | | | | 17.93 | | | | | | 15.77 | | | | | | .22 | | | | | | 1.20 | | | | | | — | | | | | | 1.42 | | | | | | 9.6 | ||
2020 | | | | | 2,227,273 | | | | | | 111,027 | | | | | | 20.06 | | | | | | 17.29 | | | | | | .19 | | | | | | .84 | | | | | | — | | | | | | 1.03 | | | | | | 6.8 | ||
2021 | | | | | 2,652,528 | | | | | | 117,872 | | | | | | 22.50 | | | | | | 19.41 | | | | | | .20 | | | | | | 2.78 | | | | | | — | | | | | | 2.98 | | | | | | 15.7 | ||
2022 | | | | | 2,100,738 | | | | | | 120,900 | | | | | | 17.38 | | | | | | 14.54 | | | | | | .18 | | | | | | .89 | | | | | | — | | | | | | 1.07 | | | | | | 6.3 | ||
2023 | | | | | 2,550,393 | | | | | | 124,052 | | | | | | 20.56 | | | | | | 17.71 | | | | | | .15 | | | | | | 1.15 | | | | | | — | | | | | | 1.30 | | | | | | 8.1 |
| |
Fees
|
| | |
Minimum and Maximum Cash Investments:
|
| |
| |
Initial Enrollment and Optional Cash
Investments: Service Fee $2.50 per investment
Brokerage Commission $0.05 per share
Reinvestment of Dividends*:
Service Fee 2% of amount invested (maximum of $2.50 per investment) Brokerage Commission $0.05 per share Sale of Shares:
Service Fee $10.00 Brokerage Commission $0.05 per share Deposit of Certificates for Safekeeping $7.50
(waived if sold)
Book to Book Transfers Included
To transfer shares to another participant or to a new participant * The year-end distribution will usually be made in newly issued shares of Common Stock. There are no fees or commissions in connection with this distribution when made in newly issued shares.
|
| | |
Initial minimum investment (non-holders) $250
Minimum optional investment (existing holders) $50
Electronic funds transfer (monthly minimum) $50
Maximum per transaction $25,000
Maximum per year NONE
INVESTORS CHOICE Mailing Address:
Equiniti Trust Company, LLC
Attn: Plan Administration P.O. Box 10027 Newark, NJ 07101 Website: https://equiniti.com/us/ast‑access E‑mail: helpAST@equiniti.com |
| |
Name (Age) Director Since |
| | Principal Occupation(s) During Past 5 Years |
| | Number of Portfolios in Fund Complex Overseen by Director |
| |
Other Current Directorships
|
|
Independent Directors | | |||||||||
Kenneth J. Dale (67) 2008 Chair of the Board |
| |
Senior Vice President and Chief Financial Officer
The Associated Press |
| | Two | | | | |
Frederic A. Escherich (71) 2006 |
| |
Private Investor
|
| | Two | | | | |
Mary Chris Jammet (56) 2020 |
| |
Principal
Bristol Partners LLC |
| | Two | | |
MGM Resorts International
|
|
Lauriann C. Kloppenburg (63) 2017 |
| |
Retired Chief Strategy Officer and Chief Investment Officer ‑ Equity Group
Loomis, Sayles & Co., LP |
| | Two | | | Transamerica Funds | |
Jane Musser Nelson (65) 2021 |
| |
Retired Managing Director, Investments
Cambridge Associates |
| | Two | | | | |
Interested Directors | | |||||||||
James P. Haynie (61) 2023 |
| |
Chief Executive Officer
Adams Diversified Equity Fund, Inc. Adams Natural Resources Fund, Inc.
President
Adams Natural Resources Fund, Inc. |
| | Two | | | | |
Mark E. Stoeckle (67) 2013 |
| |
Retired Chief Executive Officer
Adams Diversified Equity Fund, Inc. Adams Natural Resources Fund, Inc.
Retired President
Adams Diversified Equity Fund, Inc. |
| | Two | | | | |
Name (Age) Employee Since |
| |
Principal Occupation(s) During Past 5 Years
|
|
James P. Haynie, CFA (61) 2013 |
| | Chief Executive Officer of the Fund and Adams Natural Resources Fund, Inc. (since 2023); President of Adams Natural Resources Fund, Inc.; Executive Vice President of the Fund (prior to 2023) | |
D. Cotton Swindell, CFA (60)
2002 |
| | President (since 2023); Executive Vice President (prior to 2023) | |
Brian S. Hook, CFA, CPA (54) 2008 |
| |
Vice President and Chief Financial Officer of the Fund and Adams Natural Resources Fund, Inc. (since 2023); Vice President, Chief Financial Officer, and Treasurer of the Fund and Adams Natural Resources Fund, Inc. (prior to 2023)
|
|
Janis F. Kerns (60) 2018 |
| |
Vice President, General Counsel, Secretary, and Chief Compliance Officer of the Fund and Adams Natural Resources Fund, Inc.
|
|
Gregory W. Buckley (53) 2013 |
| | Vice President – Research of the Fund; Executive Vice President of Adams Natural Resources Fund, Inc. (since 2023); Vice President – Research of Adams Natural Resources Fund, Inc. (prior to 2023) | |
Xuying Chang, CFA (47) 2014 |
| |
Vice President – Research
|
|
Steven R. Crain, CFA (52) 2012 |
| |
Vice President – Research
|
|
Michael A. Kijesky, CFA (53) 2009 |
| | Vice President – Research of the Fund and Adams Natural Resources Fund, Inc. | |
Michael E. Rega, CFA (64) 2014 |
| |
Vice President – Research of the Fund and Adams Natural Resources Fund, Inc.
|
|
David R. Schiminger, CFA (52) 2002 |
| |
Vice President – Research
|
|
Jeffrey R. Schollaert, CFA (48) 2015 | | |
Vice President – Research of the Fund and Adams Natural Resources Fund, Inc.
|
|
Christine M. Sloan, CPA (51)
1999 |
| | Treasurer and Director of Human Resources of the Fund and Adams Natural Resources Fund, Inc. (since 2023); Assistant Treasurer and Director of Human Resources of the Fund and Adams Natural Resources Fund, Inc. (prior to 2023) | |
|
Independent Registered Public Accounting Firm
|
| |
PricewaterhouseCoopers LLP
|
|
|
Custodian of Securities
|
| |
The Northern Trust Company
|
|
|
Transfer Agent & Registrar
|
| | Equiniti Trust Company, LLC (f/k/a American Stock Transfer & Trust Company) Attn: Stockholder Relations Department P.O. Box 500 Newark, NJ 07101 (877) 260‑8188 Website: https://equiniti.com/us/ast‑access E‑mail: helpAST@equiniti.com |
|
Item 2. Code of Ethics.
On June 12, 2003, the Board of Directors adopted a code of ethics that applies to the registrant's principal executive officer and principal financial officer. The code of ethics is available on the registrant's website at: www.adamsfunds.com.
Item 3. Audit Committee Financial Expert.
The Board of Directors has determined that at least one of the members of the registrant's audit committee meets the definition of audit committee financial expert as that term is defined by the Securities and Exchange Commission. The directors on the registrant's audit committee whom the Board of Directors has determined meet such definition are Kenneth J. Dale, Frederich A. Escherich, Mary Chris Jammet, Lauriann C. Kloppenburg, and Jane Musser Nelson, who are each independent pursuant to paragraph (a)(2) of this Item.
Item 4. Principal Accountant Fees and Services.
(a) Audit Fees. The aggregate fees for professional services rendered by the registrant's independent registered public accounting firm, PricewaterhouseCoopers LLP, for the audit of the registrant's annual financial statements for 2023 and 2022 were $122,011 and $115,105, respectively.
(b) Audit-Related Fees. There were no audit-related fees in 2023 or 2022.
(c) Tax Fees. The aggregate fees for professional services rendered to the registrant by PricewaterhouseCoopers LLP for the review of the registrant's excise tax calculations and preparations of federal, state, and excise tax returns for 2023 and 2022 were $14,310 and $13,500, respectively.
(d) All Other Fees. The aggregate other fees rendered to the registrant by PricewaterhouseCoopers LLP for 2023 and 2022 were $725 and $3,532, respectively. Fees were related to licenses for technical reference tools.
(e) | (1) | The audit committee's policy is to pre-approve all audit and permissible non-audit services provided by the independent accountants. In assessing requests for services by the independent accountants, the audit committee considers whether such services are consistent with the auditor's independence; whether the independent accountants are likely to provide the most effective and efficient service based upon their familiarity with the registrant; and whether the service could enhance the registrant's ability to manage or control risk or improve financial statement audit quality. The audit committee may delegate pre-approval authority to its Chair. Any pre-approvals by the Chair under this delegation are to be reported to the audit committee at its next scheduled meeting. |
(2) | Zero percent of services performed by PricewaterhouseCoopers LLP pursuant to paragraphs (b) through (d) for the registrant in 2023 and 2022 were approved pursuant to pre-approval waivers described in paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X. |
(f) Not applicable.
(g) The aggregate fees for non-audit professional services rendered by PricewaterhouseCoopers LLP to the registrant for 2023 and 2022 were $15,035 and $17,032, respectively.
(h) The registrant's audit committee has considered the provision by PricewaterhouseCoopers LLP of the non-audit services described above and found that they are compatible with maintaining PricewaterhouseCoopers LLP's independence.
(i) Not applicable.
(j) Not applicable.
Item 5. Audit Committee of Listed Registrants.
(a) The registrant has a standing audit committee established in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934. The members of the Audit Committee are: Kenneth J. Dale, Frederich A. Escherich, Mary Chris Jammet, Lauriann C. Kloppenburg, and Jane Musser Nelson.
(b) Not applicable.
Item 6. Investments.
(a) This schedule is included as part of the Report to Stockholders filed under Item 1 of this form.
(b) Not applicable.
Item 7. Financial Statements and Financial Highlights for Open-End Management Investment Companies.
(a) Not applicable.
(b) Not applicable.
Item 8. Changes in and Disagreements with Accountants for Open-End Management Investment Companies.
Not applicable.
Item 9. Proxy Disclosures for Open-End Management Investment Companies.
(1) Not applicable.
(2) Not applicable.
(3) Not applicable.
Item 10. Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies.
(1) Not applicable.
(2) Not applicable.
(3) Not applicable.
(4) Not applicable.
Item 11. Statement Regarding Basis for Approval of Investment Advisory Contract.
(1) Not applicable.
(2) Not applicable.
Item 12. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
PROXY VOTING GUIDELINES
The registrant follows long-standing general guidelines for the voting of portfolio company proxies and takes very seriously its responsibility to vote all such proxies. The portfolio company proxies are evaluated by our research staff and voted by our portfolio management team, and we annually provide the Board of Directors with a report on how proxies were voted during the previous year. We do not use an outside service to assist us in voting our proxies.
While the policy is to vote all of the proxies for portfolio companies, as a general matter, securities that the registrant has loaned will not be recalled to facilitate proxy voting (in which case the borrower of the security is entitled to vote the proxy). However, if the registrant's management becomes aware of a material vote with respect to the loaned securities in time to recall the security and has determined in good faith that the importance of the matter to be voted on outweighs the loss in lending revenue that would result from recalling the security (i.e., a controversial upcoming merger or acquisition, or some other significant matter), the security will be recalled for voting.
As an internally-managed investment company, the registrant uses its own staff of research analysts and portfolio managers. In making the decision to invest in a company for the portfolio, among the factors the research team analyzes is the integrity and competency of the company's management. We must be satisfied that the companies we invest in are run by managers with integrity. Therefore, having evaluated this aspect of our portfolio companies' managements, we give significant weight to the recommendations of the company's management in voting on proxy issues.
We vote proxies on a case-by-case basis according to what we deem to be the best long-term interests of our shareholders. The key over-riding principle in any proxy vote is that stockholders be treated fairly and equitably by the portfolio company's management. In general, on the election of directors and on routine issues that we do not believe present the possibility of an adverse impact upon our investment, after reviewing whether applicable corporate governance requirements as to board and committee composition have been met, we will vote in accordance with the recommendations of the company's management. When we believe that the management's recommendation is not in the best interests of our stockholders, we will vote against that recommendation.
Our general guidelines for when we will vote contrary to the portfolio company management's recommendation are:
Stock Options
Our general guideline is to vote against stock option plans that we believe are unduly dilutive of our stock holdings in the company. We use a general guideline that we will vote against any stock option plan that results in dilution in shares outstanding exceeding 4%.
Most stock option plans are established to motivate and retain key employees and to reward them for their achievement. An analysis of a stock option plan cannot be made in a vacuum but must be made in the context of the company's overall compensation scheme. In voting on stock option plans, we give consideration to whether the stock option plan is broad-based in the number of employees who are eligible to receive grants under the plan. We generally vote against plans that permit re-pricing of grants or the issuance of options with exercise prices below the grant date value of the company's stock.
Executive Compensation
On proposals relating to executive compensation, we generally vote against proposals that fail to require or demonstrate effective linkage between pay and the company's performance over time, and for proposals that require or demonstrate such effective linkage.
It is our general policy to vote against proposals relating to future employment contracts that provide that compensation will be paid to any director, officer or employee that is contingent upon a merger or acquisition of the company.
Corporate Control/Governance Issues
Unless we conclude that the proposal is favorable to our interests as a long-term shareholder in the company, we have a long-standing policy of voting against proposals to create a staggered board of directors. In conformance with that policy, we will generally vote in favor of shareholder proposals to eliminate the staggered election of directors.
Unless we conclude that the proposal is favorable to our interests as a long-term shareholder in the company, our general policy is to vote against amendments to a company's charter that can be characterized as blatant anti-takeover provisions.
We generally vote for proposals to require that the majority of a board of directors consist of independent directors and vote against proposals to establish a retirement plan for non-employee directors.
We generally vote for proposals to require that all members of the company's Audit, Compensation, and Nominating committees be independent of management.
We have found that most stockholder proposals relating to social issues focus on very narrow issues that either fall within the authority of the company's management, under the oversight of its board of directors, to manage the day-to-day operations of the company or concern matters that are more appropriate for global solutions rather than company-specific ones. We consider these proposals on a case-by-case basis but usually are persuaded if management's position is reasonable and vote in accordance with management's recommendation on these types of proposals.
Item 13. Portfolio Managers of Closed-End Management Investment Companies.
(a) | (1) As of the date of this filing, James P. Haynie, Chief Executive Officer, and D. Cotton Swindell, President, comprise the two-person portfolio management team for the registrant. Mr. Haynie has been a member of the portfolio management team since August 19, 2013, serving as President until January 21, 2015, and Executive Vice President until April 20, 2023. D. Cotton Swindell has been a member of the portfolio management team since January 21, 2015, serving as Executive Vice President until April 20, 2023. Prior thereto, Mr. Swindell served as Vice President - Research beginning in 2004, and as a research analyst beginning in 2002. Mr. Haynie is the lead member of the portfolio management team. Messrs. Haynie and Swindell receive investment recommendations from a team of research analysts and make decisions jointly about any investment transactions in the portfolio. |
(2) As of December 31, 2023, Mr. Haynie also serves on the portfolio management team as Chief Executive Officer and President for the registrant's non-controlled affiliate, Adams Natural Resources Fund, Inc. ("PEO"), an internally managed registered investment company with total net assets of $633,446,941. PEO is a non-diversified fund specializing in the energy and natural resources sectors and the registrant is a diversified product with a broader focus. There are few material conflicts of interest that may arise in connection with the portfolio management of the funds. The funds do not buy or sell securities or other portfolio holdings to or from the other, and policies and procedures are in place covering the sharing of expenses and the allocation of investment opportunities, including bunched orders and investments in initial public offerings, between the funds. | |
(3) As of December 31, 2023, the registrant's portfolio managers are compensated through a plan consisting of salary and annual cash incentive compensation, of which the amount in any year is determined by the Compensation Committee, comprised primarily of independent director members of the Board of Directors ("Committee"). The structure and methods used to determine the compensation of the portfolio managers were as follows: Salaries are determined by using appropriate industry surveys and information about the local market. Incentive compensation is based on a combination of relative fund performance of the registrant and PEO, and individual performance. Target incentives are set annually based on aggregate compensation less salary for each position. Fund performance used in determining incentive compensation is measured over a one-year period, accounting for one-fourth of the calculation, a three-year period, which accounts for one-half, and a five-year period, which accounts for one-fourth. The registrant's return on portfolio assets over each of these periods is used to determine performance relative to a 50/50 blend of the S&P 500 Index and the Morningstar U.S. Large Blend Funds Category. Using these calculations, the incentive compensation can be less than or exceed the established target.
The structure of the compensation that the portfolio manager receives from PEO is the same as that for the registrant with the exception that the portfolio manager's incentive compensation is based on a comparison with the performance of a blend of the S&P 500 Energy Sector and the S&P 500 Materials Sector. | |
(4) Using a valuation date of December 31, 2023, Messrs. Haynie and Swindell each beneficially owned equity securities in the registrant valued over $1,000,000. | |
(b) | Not applicable. |
Item 14. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Total Number of Shares (or Units) Purchased | Average Price Paid per Share (or Unit) | Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs | Maximum Number of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs | ||||||||||||||
1/1/23-1/31/23 | 57,434 | $ | 14.83 | 57,434 | 4,863,818 | ||||||||||||
2/1/23-2/28/23 | 0 | -- | 0 | 4,863,818 | |||||||||||||
3/1/23-3/31/23 | 0 | -- | 0 | 4,863,818 | |||||||||||||
4/1/23-4/30/23 | 0 | -- | 0 | 4,863,818 | |||||||||||||
5/1/23-5/31/23 | 21,000 | 15.70 | 21,000 | 4,842,818 | |||||||||||||
6/1/23-6/30/23 | 10,000 | 16.32 | 10,000 | 4,832,818 | |||||||||||||
7/1/23-7/31/23 | 4,000 | 17.11 | 4,000 | 4,828,818 | |||||||||||||
8/1/23-8/31/23 | 0 | -- | 0 | 4,828,818 | |||||||||||||
9/1/23-9/30/23 | 0 | -- | 0 | 4,828,818 | |||||||||||||
10/1/23-10/31/23 | 0 | -- | 0 | 4,828,818 | |||||||||||||
11/1/23-11/30/23 | 0 | -- | 0 | 4,828,818 | |||||||||||||
12/1/23-12/31/23 | 0 | -- | 0 | 4,828,818 | |||||||||||||
Total | 92,434 | $ | $15.29 | 92,434 |
(1) There were no shares purchased other than through a publicly announced plan or program.
(2a) The share repurchase plan was announced on December 11, 2014, with an additional authorization announced on December 18, 2018. On September 22, 2020, the Fund announced an enhanced discount management and liquidity program whereby the Fund will purchase shares, subject to certain restrictions, when the discount exceeds 15% of net asset value for at least 30 consecutive trading days. The enhanced program also provides the Fund will engage in a proportional tender offer to purchase shares when the discount exceeds 19% of net asset value for 30 consecutive trading days, not to exceed one such offer in any twelve-month period.
(2b) The share amount approved in 2014 was 5% of then-outstanding shares, or 4,667,000 shares, and 5,314,566 additional shares were approved in 2018.
(2c) The share repurchase plan has no expiration date.
(2d) None.
(2e) None.
Item 15. Submission of Matters to a Vote of Security Holders.
There were no material changes to the procedures by which shareholders may recommend nominees to the registrant's Board of Directors made or implemented after the registrant last provided disclosure in response to the requirements of Item 407(c)(2)(iv) of Regulation S-K (as required by Item 22(b)(15) of Schedule 14A), or this Item.
Item 16. Controls and Procedures.
(a) The registrant's principal executive officer and principal financial officer have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) are effective based on their evaluation of the disclosure controls and procedures as of a date within 90 days of the filing date of this report.
(b) There have been no significant changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.
Item 17. Disclosures of Securities Lending Activities for Closed-End Management Investment Companies.
(a) Dollar amounts of income and fees/compensation related to securities lending activities during the most recent fiscal year are: | ||
(1) | Gross income from securities lending activities was $227,381. | |
(2) | Rebates paid to borrowers were $115,191, fees deducted from a pooled cash collateral reinvestment product were $110, and revenue generated by the securities lending program paid to the securities lending agent was $33,620. | |
(3) | The aggregate fees related to securities lending activities were $148,921. | |
(4) | Net income from securities lending activities was $78,460. | |
(b) Services provided by the securities lending agent in the most recent fiscal year for lending of the Fund's portfolio securities in accordance with its securities lending authorization agreement, included: identifying and approving borrowers, selecting securities to be loaned, negotiating loan terms, recordkeeping of all loan and dividend activity, receiving and holding collateral from borrowers, monitoring loan and collateral values on a daily basis, requesting additional collateral as required, and arranging for return of loaned securities at loan termination. When cash collateral is received from the borrower, the security lending agent invests the cash in a registered money market fund. |
Item 18. Recovery of Erroneously Awarded Compensation.
(a) Not applicable.
(b) Not applicable.
Item 19. Exhibits.
(a) | (1) | Not applicable; see registrant's response to Item 2 above. |
(2) | Separate certifications by the registrant's principal executive officer and principal financial officer, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 and required by Rule 30a-2(a) under the Investment Company Act of 1940, are attached. | |
(3) | Written solicitation to purchase securities: not applicable. | |
(4) | Change in independent public accountant: not applicable. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Adams Diversified Equity Fund, Inc. | ||
By: | /s/ James P. Haynie | |
James P. Haynie | ||
Chief Executive Officer | ||
(Principal Executive Officer) | ||
Date: | February 20, 2024 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: | /s/ James P. Haynie | |
James P. Haynie | ||
Chief Executive Officer | ||
(Principal Executive Officer) | ||
Date: | February 20, 2024 | |
By: | /s/ Brian S. Hook | |
Brian S. Hook | ||
Vice President & Chief Financial Officer | ||
(Principal Financial Officer) | ||
Date: | February 20, 2024 |
Exhibit 99.CERT
CERTIFICATIONS
I, James P. Haynie, certify that: | |
1. | I have reviewed this report on Form N-CSR of Adams Diversified Equity Fund, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; | |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | |
c. | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): | |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and | |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: February 20, 2024 | /s/ James P. Haynie |
James P. Haynie | |
Chief Executive Officer | |
(Principal Executive Officer) |
I, Brian S. Hook, certify that:
1. | I have reviewed this report on Form N-CSR of Adams Diversified Equity Fund, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; | |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | |
c. | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): | |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and | |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. | |
Date: February 20, 2024 | /s/ Brian S. Hook |
Brian S. Hook | |
Vice President & Chief Financial Officer | |
(Principal Financial Officer) |
Exhibit 99.906CERT
CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER
In connection with the Certified Shareholder Report of Adams Diversified Equity Fund, Inc. (the Fund) on Form N-CSR for the year ended December 31, 2023, as filed with the Securities and Exchange Commission on the date hereof (the Report), I, James P. Haynie, Chief Executive Officer of the Fund, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Fund. |
BY: | /s/ James P. Haynie | |
James P. Haynie | ||
Chief Executive Officer | ||
(Principal Executive Officer) |
DATE: | February 20, 2024 |
A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form with the electronic version of this written statement required by Section 906, has been provided to the Fund and will be retained by the Fund and furnished to the Securities and Exchange Commission or its staff upon request.
CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER
In connection with the Certified Shareholder Report of Adams Diversified Equity Fund, Inc. (the Fund) on Form N-CSR for the year ended December 31, 2023, as filed with the Securities and Exchange Commission on the date hereof (the Report), I, Brian S. Hook, Vice President and Chief Financial Officer of the Fund, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Fund. |
BY: | /s/ Brian S. Hook | |
Brian S. Hook | ||
Vice President & Chief Financial Officer | ||
(Principal Financial Officer) |
DATE: | February 20, 2024 |
A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form with the electronic version of this written statement required by Section 906, has been provided to the Fund and will be retained by the Fund and furnished to the Securities and Exchange Commission or its staff upon request.
1 Year Adams Diversified Equity Chart |
1 Month Adams Diversified Equity Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions