Adams Funds Announces Decisions To Opt In To Maryland Control Share Acquisition Act And Adoption Of Enhanced Discount Management Programs
On September 22, 2020, Adams Diversified Equity Fund (NYSE: ADX) and Adams Natural Resources Fund (NYSE: PEO) announced their unanimous decision to adopt the Maryland Control Share Acquisition Act (MCSAA). This act aims to safeguard shareholder interests by restricting the voting rights of large investors acquiring more than 10% of shares, unless approved by other shareholders. Additionally, both funds initiated an enhanced discount management program, which includes share repurchases when discounts to net asset value exceed 15% or 19% over specified trading days.
- Adoption of MCSAA protects shareholders from short-term acquisitions impacting long-term value.
- Initiated enhanced discount management program to address market price discounts effectively.
- None.
BALTIMORE, Sept. 22, 2020 /PRNewswire/ -- Adams Diversified Equity Fund, Inc. (NYSE: ADX), and Adams Natural Resources Fund, Inc. (NYSE: PEO) announced today that each Fund has elected, by a unanimous resolution of each Fund's board of directors, to be subject to the Maryland Control Share Acquisition Act (MCSAA), effective as of September 22, 2020.
The objective of the MCSAA is to protect the interests of all shareholders of a Maryland corporation. It achieves this by limiting the voting power of a large investor or group acting in concert on newly acquired shares above various threshold levels that start at 10 percent. Those shares can be voted only if two-thirds of the shares held by the other shareholders agree to grant voting rights to these "control" shares.
The MCSAA limits the ability of an acquiring person to achieve a short-term gain at the expense of long-term value for the rest of the Fund's shareholders. The MCSAA will only apply to "control shares" acquired after September 22, 2020, the date that the Funds elected to be subject to the MCSAA. The above description of the MCSAA is only a high-level summary and investors should refer to the actual provisions of the MCSAA for more information.
In connection with the Funds' election to opt in to the MCSAA, each Fund has also established an enhanced discount management and liquidity program. In addition to the Funds' existing annual
For more information about Adams Funds, please visit: adamsfunds.com.
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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
Contact:
Lyn Walther │ Director of Shareholder Communications │800.638.2479 │ investorrelations@adamsfunds.com
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SOURCE Adams Funds
FAQ
What is the purpose of the Maryland Control Share Acquisition Act for ADX and PEO?
When did ADX and PEO adopt the Maryland Control Share Acquisition Act?
What is the enhanced discount management program introduced by ADX and PEO?
How does the MCSAA affect future control share acquisitions in ADX and PEO?