Adams Diversified Equity Fund Announces 2024 Performance

Rhea-AI Summary

Adams Diversified Equity Fund (NYSE: ADX) reported strong performance for 2024, achieving a 23.6% total return on net asset value, slightly below the S&P 500's 25.0% but outperforming the Morningstar U.S. Large Blend Category's 22.7%. The fund's market price return was notably higher at 28.1%.

The Fund distributed $2.50 per share in dividends and capital gains, representing a 10.9% distribution rate on NAV, exceeding their new 8% NAV distribution commitment. Net assets increased to $2.66 billion by year-end, with a NAV per share of $22.64.

The portfolio maintains significant exposure to technology sector (32.4%), with top holdings including Apple (8.0%), Microsoft (7.1%), and NVIDIA (6.9%). Other major sectors include Financials (13.4%) and Consumer Discretionary (11.4%).

Positive

• Outperformed Morningstar U.S. Large Blend Category (23.6% vs 22.7%)
• Strong market price return of 28.1%
• High distribution rate of 10.9%, exceeding 8% commitment
• Net assets increased to $2.66 billion from $2.55 billion
• NAV per share increased to $22.64 from $20.56

Negative

• Underperformed S&P 500 benchmark (23.6% vs 25.0%)
• High concentration risk with 41.6% of assets in top 10 holdings
• Significant tech sector exposure (32.4%) could increase volatility

BALTIMORE, Jan. 16, 2025 (GLOBE NEWSWIRE) -- Adams Diversified Equity Fund, Inc. (NYSE: ADX) announces the Fund’s investment returns for 2024. The total return on the Fund’s net asset value for 2024 was 23.6%, with dividends and capital gains reinvested. The comparable figures for the S&P 500 Index and Morningstar U.S. Large Blend Category were 25.0% and 22.7%, respectively. The total return on the Fund’s market price for the period was 28.1%.

The Fund paid $2.50 per share in income dividends and realized capital gain distributions to shareholders in 2024, producing an annual distribution rate of 10.9% on net asset value.

“In a year of increased volatility related to the presidential election, we were pleased to outperform our peers in 2024 and distribute 10.9% of NAV to shareholders, significantly more than our new commitment adopted mid-year to annually distribute 8% of NAV,” said Jim Haynie, CEO of Adams Funds.

The 2024 Annual Report is expected to be released on or about February 19, 2025.

ANNUALIZED ONE, THREE, FIVE, AND TEN-YEAR COMPARATIVE RETURNS (12/31/24)
	1 Year		3 Year		5 Year		10 Year
Adams Diversified Equity Fund  (NAV)	23.6	%	9.2	%	15.0	%	13.7	%
Adams Diversified Equity Fund (market price)	28.1	%	10.5	%	15.3	%	14.1	%
Morningstar U.S. Large Blend Category	22.7	%	7.8	%	13.3	%	11.8	%
S&P 500	25.0	%	8.9	%	14.5	%	13.1	%

NET ASSET VALUE ANNOUNCED

The Fund’s net asset value at the end of 2024, compared with the year earlier, was:

	12/31/24		12/31/23
Net assets	$	2,662,523,552	$	2,550,393,350
Shares outstanding	117,585,976		124,051,639
Net asset value per share	$	22.64	$	20.56

TEN LARGEST EQUITY PORTFOLIO HOLDINGS (12/31/24)
	% of Net Assets
Apple Inc.	8.0	%
Microsoft Corporation.	7.1	%
NVIDIA Corporation	6.9	%
Amazon.com, Inc.	4.8	%
Alphabet Inc. Class A	3.9	%
Meta Platforms, Inc. Class A	2.8	%
Broadcom Inc.	2.5	%
Adams Natural Resources Fund, Inc.*	1.9	%
JP Morgan Chase & Co.	1.9	%
Tesla, Inc.	1.8	%
Total	41.6	%
* Non-controlled affiliated closed-end fund.

SECTOR WEIGHTINGS (12/31/24)
	% of Net Assets
Information Technology	32.4	%
Financials	13.4	%
Consumer Discretionary	11.4	%
Health Care	9.9	%
Communication Services	9.3	%
Industrials	7.8	%
Consumer Staples	5.7	%
Energy	3.5	%
Utilities	2.2	%
Real Estate	2.0	%
Materials	1.7	%

About Adams Funds

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 90 years across many market cycles. The Funds are committed to paying a minimum annual distribution rate of 8% of NAV paid evenly each quarter throughout the year, providing reliability for long-term shareholders. A portion of any distribution may be treated as paid from sources other than net income, including but not limited to short-term capital gain, long-term capital gain, and return of capital. The final determination of the source of all distributions for tax reporting purposes in a calendar year, including the percentage of qualified dividend income, will be made after year-end. Shares can be purchased through our transfer agent or through a broker. For more information about Adams Funds, please visit: adamsfunds.com.

For further information please contact: adamsfunds.com/about/contact │800.638.2479

FAQ

What was ADX's total return on NAV for 2024?

Adams Diversified Equity Fund (ADX) achieved a 23.6% total return on net asset value for 2024.

How much did ADX distribute to shareholders in 2024?

ADX distributed $2.50 per share in income dividends and realized capital gains in 2024, representing a 10.9% distribution rate on NAV.

What are ADX's largest portfolio holdings as of December 31, 2024?

ADX's largest holdings were Apple (8.0%), Microsoft (7.1%), NVIDIA (6.9%), Amazon (4.8%), and Alphabet Class A (3.9%).

How did ADX perform compared to the S&P 500 in 2024?

ADX's NAV return of 23.6% slightly underperformed the S&P 500's return of 25.0% in 2024.

What is ADX's sector allocation as of December 31, 2024?

ADX's largest sector allocations were Information Technology (32.4%), Financials (13.4%), and Consumer Discretionary (11.4%).