Adams Diversified Equity Fund Reports Nine Month Results

Rhea-AI Summary

Adams Diversified Equity Fund (NYSE: ADX) reported its nine-month results ending September 30, 2024. The fund's total return on net asset value was 21.3%, slightly underperforming the S&P 500 (22.1%) but outperforming the Morningstar U.S. Large Blend category (20.4%). The market price return was 24.9%. For the 12-month period, ADX's NAV return was 37.0%, outperforming both benchmarks. The fund's net assets increased to $2.74 billion from $2.35 billion a year earlier, with a net asset value per share of $24.31. The top holdings include Apple (7.7%), Microsoft (7.4%), and NVIDIA (6.3%), with Information Technology being the largest sector weighting at 31.0%.

Positive

• Total return on net asset value for 12 months (37.0%) outperformed both S&P 500 (36.4%) and Morningstar U.S. Large Blend category (34.5%)
• Market price return for 12 months was 41.9%, significantly higher than NAV return
• Net assets increased from $2.35 billion to $2.74 billion year-over-year
• Net asset value per share grew from $19.43 to $24.31 over the past year

Negative

• Nine-month total return on net asset value (21.3%) underperformed the S&P 500 (22.1%)

Insights

Financial Analyst

Adams Diversified Equity Fund's performance for the nine months ended September 30, 2024, shows strong results, with a 21.3% total return on NAV. This slightly underperformed the S&P 500 (22.1%) but outpaced the Morningstar U.S. Large Blend category (20.4%). The fund's market price return of 24.9% indicates investor optimism.

Over a 12-month period, ADX outperformed both benchmarks with a 37.0% NAV return and an impressive 41.9% market price return. Long-term performance remains solid, with 5-year and 10-year annualized returns of 16.4% and 14.0% respectively, surpassing category averages.

The fund's $2.74 billion in net assets and $24.31 NAV per share represent significant growth from the previous year. Its portfolio is heavily weighted towards tech giants, with Apple, Microsoft and NVIDIA comprising over 21% of net assets. This tech-heavy allocation aligns with the fund's 31.0% weighting in Information Technology, which likely contributed to its strong performance in a year where tech stocks rallied.

Portfolio Manager

The fund's slight underperformance compared to the S&P 500 in the 9-month period might be attributed to its diversification strategy. While this may have tempered short-term gains, it's important for long-term risk management. The overweight position in tech stocks has paid off, but investors should monitor this concentration risk.

The reduction in shares outstanding from 120.8 million to 112.7 million suggests share buybacks or a tender offer, which can be positive for remaining shareholders. The fund's investment in its sister fund, Adams Natural Resources Fund (1.9% of assets), provides exposure to the energy sector beyond its direct 3.6% allocation.

The fund's sector weightings show a balanced approach beyond tech, with significant allocations to Financials (12.5%) and Health Care (11.6%). This diversification could provide stability if tech sector performance moderates. Investors should watch for the upcoming Third Quarter Report for more detailed insights into the fund's strategy and outlook.

BALTIMORE, Oct. 17, 2024 (GLOBE NEWSWIRE) -- Adams Diversified Equity Fund, Inc. (NYSE: ADX) today announced the Fund’s results for the nine months ended September 30^th. The total return on Adams Diversified Equity’s net asset value, with dividends and capital gains reinvested, was 21.3%. Comparable figures for the S&P 500 and the Morningstar U.S. Large Blend category were 22.1% and 20.4%, respectively. The total return on the market price of the Fund’s shares for the period was 24.9%.

For the twelve months ended September 30^th, the total return on Adams Diversified Equity’s net asset value, with dividends and capital gains reinvested, was 37.0%. Comparable figures for the S&P 500 and the Morningstar U.S. Large Blend category were 36.4% and 34.5%, respectively. The total return on the market price of the Fund’s shares for the period was 41.9%.

The Third Quarter Report to Shareholders is expected to be available on or about October 23, 2024.

ANNUALIZED COMPARATIVE RETURNS (9/30/2024)
	1 Year	3 Year	5 Year	10 Year
Adams Diversified Equity Fund (NAV)	37.0%	13.1%	16.4%	14.0%
Adams Diversified Equity Fund (market price)	41.9%	13.9%	16.4%	14.4%
Morningstar U.S. Large Blend Category	34.5%	10.6%	14.9%	12.0%
S&P 500	36.4%	11.9%	16.0%	13.4%

NET ASSET VALUE ANNOUNCED

The Fund’s net asset value at September 30, 2024, compared with the year earlier, was:

	9/30/2024	9/30/2023
Net assets	$2,739,312,275	$2,347,175,163
Shares outstanding	112,690,081	120,809,873
Net asset value per share	$24.31	$19.43

TEN LARGEST EQUITY PORTFOLIO HOLDINGS (9/30/2024)
	% of Net Assets
Apple Inc.	7.7%
Microsoft Corporation	7.4%
NVIDIA Corporation	6.3%
Amazon.com, Inc.	4.1%
Alphabet Inc. Class A	3.5%
Meta Platforms, Inc. Class A	2.8%
JPMorgan Chase & Co.	2.0%
Adams Natural Resources Fund, Inc.*	1.9%
Broadcom Inc.	1.8%
Eli Lilly and Company	1.8%
Total	39.3%
*Non-controlled affiliated closed-end fund

SECTOR WEIGHTINGS (9/30/2024)
	% of Net Assets
Information Technology	31.0%
Financials	12.5%
Health Care	11.6%
Consumer Discretionary	10.3%
Communication Services	9.0%
Industrials	8.5%
Consumer Staples	6.1%
Energy	3.6%
Utilities	2.4%
Real Estate	2.3%
Materials	2.1%

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 85 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 Adams Diversified Equity Fund's (ADX) total return on net asset value for the nine months ended September 30, 2024?

Adams Diversified Equity Fund's (ADX) total return on net asset value for the nine months ended September 30, 2024, was 21.3%.

How did ADX perform compared to the S&P 500 and Morningstar U.S. Large Blend category for the 12-month period ended September 30, 2024?

For the 12-month period ended September 30, 2024, ADX outperformed both benchmarks with a total return on net asset value of 37.0%, compared to 36.4% for the S&P 500 and 34.5% for the Morningstar U.S. Large Blend category.

What were the top three holdings in Adams Diversified Equity Fund's (ADX) portfolio as of September 30, 2024?

The top three holdings in ADX's portfolio as of September 30, 2024, were Apple Inc. (7.7%), Microsoft (7.4%), and NVIDIA (6.3%).

What was the net asset value per share of Adams Diversified Equity Fund (ADX) on September 30, 2024?

The net asset value per share of Adams Diversified Equity Fund (ADX) on September 30, 2024, was $24.31.