FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment
Company Act file number: 811-00248
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ADAMS
DIVERSIFIED EQUITY FUND, INC.
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(Exact name of registrant as specified in charter)
500
East Pratt Street, Suite 1300, Baltimore, Maryland 21202
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(Address of principal executive offices)
Janis
F. Kerns
Adams Diversified Equity Fund, Inc.
500 East Pratt Street, Suite 1300
Baltimore, Maryland 21202
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(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: June 30, 2018
Item 1. Reports to Stockholders.
| | |
Market Value
|
| |
Percent of
Net Assets |
| ||||||
Microsoft Corporation | | | | $ | 82,516,848 | | | | | | 4.6% | | |
Amazon.com, Inc. | | | | | 72,751,440 | | | | | | 4.0 | | |
Alphabet Inc. Class A & Class C | | | | | 66,238,389 | | | | | | 3.7 | | |
Apple Inc. | | | | | 63,936,994 | | | | | | 3.5 | | |
Facebook, Inc. Class A | | | | | 52,369,240 | | | | | | 2.9 | | |
Adams Natural Resources Fund, Inc.* | | | | | 43,932,290 | | | | | | 2.4 | | |
Visa Inc. Class A | | | | | 43,138,965 | | | | | | 2.4 | | |
Berkshire Hathaway Inc. Class B | | | | | 41,697,610 | | | | | | 2.3 | | |
Bank of America Corp. | | | | | 41,450,576 | | | | | | 2.3 | | |
UnitedHealth Group Incorporated | | | | | 39,843,216 | | | | | | 2.2 | | |
| | | $ | 547,875,568 | | | | | | 30.3% | | | |
|
| Assets | | | | | | | | | | | | | |
| Investments* at value: | | | | | | | | | | | | | |
|
Common stocks:
|
| | | | | | | | | | | | |
|
Unaffiliated issuers (cost $1,170,750,170)
|
| | | $ | 1,744,140,683 | | | | | | | | |
|
Non-controlled affiliate (cost $34,735,404)
|
| | | | 43,932,290 | | | | | | | | |
|
Other investment in controlled affiliate (cost $150,000)
|
| | | | 1,047,000 | | | | | | | | |
|
Short-term investments (cost $22,532,133)
|
| | | | 22,533,133 | | | | | $ | 1,811,653,106 | | |
| Cash | | | | | | | | | | | 254,991 | | |
| Dividends and other receivables | | | | | | | | | | | 823,334 | | |
|
Net unrealized gain on open total return swap agreements
|
| | | | | | | | | | 616,522 | | |
| Prepaid expenses and other assets | | | | | | | | | | | 1,228,250 | | |
|
Total Assets
|
| | | | | | | | | | 1,814,576,203 | | |
| | | | | | | | | | | | | | |
| Liabilities | | | | | | | | | | | | | |
| Fund shares purchased | | | | | | | | | | | 386,715 | | |
| Due to officers and directors (note 8) | | | | | | | | | | | 1,482,086 | | |
| Accrued expenses and other liabilities | | | | | | | | | | | 1,555,924 | | |
|
Total Liabilities
|
| | | | | | | | | | 3,424,725 | | |
|
Net Assets
|
| | | | | | | | | $ | 1,811,151,478 | | |
| | | | | | | | | | | | | | |
| Net Assets | | | | | | | | | | | | | |
|
Common Stock at par value $0.001 per share, authorized 150,000,000 shares; issued and outstanding 101,105,230 shares (includes 1,236 restricted shares and 54,752 deferred stock units) (note 7)
|
| | | | | | | | | $ | 101,105 | | |
| Additional capital surplus | | | | | | | | | | | 1,122,328,363 | | |
| Undistributed net investment income | | | | | | | | | | | 1,356,714 | | |
| Undistributed net realized gain (loss) | | | | | | | | | | | 103,263,375 | | |
| Unrealized appreciation | | | | | | | | | | | 584,101,921 | | |
|
Net Assets Applicable to Common Stock
|
| | | | | | | | | $ | 1,811,151,478 | | |
|
Net Asset Value Per Share of Common Stock
|
| | | | | | | | | $ | 17.91 | | |
|
| Investment Income | | | | | | | |
|
Income:
|
| | | | | | |
|
Dividends (includes $393,619 from affiliates and net of $21,582 in foreign taxes)
|
| | | $ | 14,860,048 | | |
|
Other income
|
| | | | 104,415 | | |
|
Total Income
|
| | | | 14,964,463 | | |
|
Expenses:
|
| | | | | | |
|
Investment research compensation and benefits
|
| | | | 2,377,579 | | |
|
Administration and operations compensation and benefits
|
| | | | 1,510,090 | | |
|
Occupancy and other office expenses
|
| | | | 391,041 | | |
|
Directors’ compensation
|
| | | | 263,667 | | |
|
Investment data services
|
| | | | 259,939 | | |
|
Transfer agent, custody, and listing fees
|
| | | | 155,475 | | |
|
Shareholder reports and communications
|
| | | | 153,763 | | |
|
Accounting, recordkeeping, and other professional fees
|
| | | | 95,316 | | |
|
Insurance
|
| | | | 69,841 | | |
|
Audit and tax services
|
| | | | 59,989 | | |
|
Legal services
|
| | | | 24,203 | | |
|
Total Expenses
|
| | | | 5,360,903 | | |
|
Net Investment Income
|
| | | | 9,603,560 | | |
| | | | | | | | |
| Realized Gain (Loss) and Change in Unrealized Appreciation | | | | | | | |
|
Net realized gain (loss) on investments
|
| | | | 103,674,685 | | |
|
Net realized gain (loss) on total return swap agreements
|
| | | | 1,210,646 | | |
|
Net realized gain distributed by non-conrolled affiliate
|
| | | | 43,735 | | |
|
Change in unrealized appreciation on investments (includes $1,325,694 from affiliates)
|
| | | | (69,932,411) | | |
|
Change in unrealized appreciation on total return swap agreements
|
| | | | 616,522 | | |
|
Net Gain (Loss)
|
| | |
|
35,613,177
|
| |
| Change in Net Assets from Operations | | | |
$
|
45,216,737
|
| |
|
| | |
(unaudited)
Six Months Ended June 30, 2018 |
| |
Year Ended
December 31, 2017 |
| ||||||
From Operations: | | | | | | | | | | | | | |
Net investment income
|
| | | $ | 9,603,560 | | | | | $ | 21,735,664 | | |
Net realized gain (loss)
|
| | | | 104,929,066 | | | | | | 113,630,703 | | |
Change in unrealized appreciation
|
| | | | (69,315,889) | | | | | | 238,168,031 | | |
Change in Net Assets from Operations
|
| | |
|
45,216,737
|
| | | |
|
373,534,398
|
| |
| | | | | | | | | | | | | |
Distributions to Shareholders from: | | | | | | | | | | | | | |
Net investment income
|
| | | | (9,146,574) | | | | | | (21,758,323) | | |
Net realized gain
|
| | | | (1,017,220) | | | | | | (114,330,503) | | |
Change in Net Assets from Distributions
|
| | | | (10,163,794) | | | | | | (136,088,826) | | |
| | | | | | | | | | | | | |
From Capital Share Transactions: | | | | | | | | | | | | | |
Value of shares issued in payment of distributions (note 5)
|
| | | | 35,695 | | | | | | 49,154,304 | | |
Cost of shares purchased (note 5)
|
| | | | (9,506,430) | | | | | | (14,430,657) | | |
Deferred compensation (notes 5, 7)
|
| | | | (202,620) | | | | | | 104,944 | | |
Change in Net Assets from Capital Share Transactions
|
| | | | (9,673,355) | | | | | | 34,828,591 | | |
Total Change in Net Assets
|
| | | | 25,379,588 | | | | | | 272,274,163 | | |
| | | | | | | | | | | | | |
Net Assets: | | | | | | | | | | | | | |
Beginning of period
|
| | | | 1,785,771,890 | | | | | | 1,513,497,727 | | |
End of period (including undistributed net investment income of $1,356,714 and $899,728, respectively)
|
| | | $ | 1,811,151,478 | | | | | $ | 1,785,771,890 | | |
|
| | |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| |
Total
|
| ||||||||||||
Assets: | | | | | | | | | | | | | | | | | | | | | | | | | |
Common stocks | | | | $ | 1,788,072,973 | | | | | $ | — | | | | | $ | — | | | | | $ | 1,788,072,973 | | |
Other investments
|
| | | | — | | | | | | — | | | | | | 1,047,000 | | | | | | 1,047,000 | | |
Short-term investments
|
| | | | 22,533,133 | | | | | | — | | | | | | — | | | | | | 22,533,133 | | |
Total investments | | | | $ | 1,810,606,106 | | | | | $ | — | | | | | $ | 1,047,000 | | | | | $ | 1,811,653,106 | | |
Total return swap agreements*
|
| | | $ | — | | | | | $ | 616,522 | | | | | $ | — | | | | | $ | 616,522 | | |
|
| Balance at December 31, 2017 | | | | $ | 268,000 | | |
| Purchases | | | | | — | | |
| Change in unrealized appreciation on investments | | | | | 779,000 | | |
| Balance at June 30, 2018 | | | | $ | 1,047,000 | | |
|
| | |
Shares
|
| |
Amount
|
| ||||||||||||||||||
| | |
Six months
ended June 30, 2018 |
| |
Year ended
December 31, 2017 |
| |
Six months
ended June 30, 2018 |
| |
Year ended
December 31, 2017 |
| ||||||||||||
Shares issued in payment of distributions
|
| | | | 2,358 | | | | | | 3,314,530 | | | | | $ | 35,695 | | | | | $ | 49,154,304 | | |
Shares purchased (at a
weighted average discount from net asset value of 14.4% and 15.0%, respectively) |
| | | | (619,015) | | | | | | (1,004,274) | | | | | | (9,506,430) | | | | | | (14,430,657) | | |
Net activity under the 2005 Equity Incentive Compensation Plan
|
| | | | (13,770) | | | | | | (11,423) | | | | | | (202,620) | | | | | | 104,944 | | |
Net Change | | | | | (630,427) | | | | | | 2,298,833 | | | | | $ | (9,673,355) | | | | | $ | 34,828,591 | | |
|
Awards
|
| |
Shares/Units
|
| |
Weighted Average
Grant-Date Fair Value |
| ||||||
Balance at December 31, 2017 | | | | | 94,601 | | | | | $ | 12.80 | | |
Reinvested dividend equivalents | | | | | 262 | | | | | | 15.38 | | |
Vested & issued | | | | | (38,875) | | | | | | 13.40 | | |
Balance at June 30, 2018 | | | | | 55,988 | | | | | $ | 12.40 | | |
|
| Remainder of 2018 | | | | $ | 138,734 | | |
| 2019 | | | | | 266,866 | | |
| 2020 | | | | | 264,954 | | |
| 2021 | | | | | 259,823 | | |
| 2022 | | | | | 266,355 | | |
| Thereafter | | | | | 1,133,791 | | |
| Total | | | | $ | 2,330,523 | | |
|
| | |
(unaudited)
Six Months Ended |
| | | | | | ||||||||||||||||||||||||||||||||||
| | |
June 30,
2018 |
| |
June 30,
2017 |
| |
Year Ended December 31,
|
| |||||||||||||||||||||||||||||||||
| | |
2017
|
| |
2016
|
| |
2015
|
| |
2014
|
| |
2013
|
| |||||||||||||||||||||||||||
Per Share Operating Performance
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net asset value, beginning of period
|
| | | | $17.55 | | | | | | $15.22 | | | | | | $15.22 | | | | | | $15.04 | | | | | | $15.87 | | | | | | $15.09 | | | | | | $12.43 | | |
Net investment income
|
| | | | 0.09 | | | | | | 0.11 | | | | | | 0.22 | | | | | | 0.19 | | | | | | 0.13 | | | | | | 0.20 | | | | | | 0.20 | | |
Net realized gain (loss) and change in unrealized appreciation
|
| | | | 0.35 | | | | | | 1.66 | | | | | | 3.55 | | | | | | 1.03 | | | | | | — | | | | | | 1.83 | | | | | | 3.32 | | |
Change in accumulated other
comprehensive income |
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 0.02 | | | | | | (0.01) | | | | | | 0.01 | | |
Total from operations | | | | | 0.44 | | | | | | 1.77 | | | | | | 3.77 | | | | | | 1.22 | | | | | | 0.15 | | | | | | 2.02 | | | | | | 3.53 | | |
Less distributions from: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income
|
| | | | (0.09) | | | | | | (0.09) | | | | | | (0.22) | | | | | | (0.18) | | | | | | (0.14) | | | | | | (0.20) | | | | | | (0.22) | | |
Net realized gain
|
| | | | (0.01) | | | | | | (0.01) | | | | | | (1.16) | | | | | | (0.81) | | | | | | (0.79) | | | | | | (0.98) | | | | | | (0.62) | | |
Total distributions | | | | | (0.10) | | | | | | (0.10) | | | | | | (1.38) | | | | | | (0.99) | | | | | | (0.93) | | | | | | (1.18) | | | | | | (0.84) | | |
Capital share repurchases (note 5)
|
| | | | 0.02 | | | | | | 0.02 | | | | | | 0.03 | | | | | | 0.02 | | | | | | 0.02 | | | | | | 0.02 | | | | | | 0.02 | | |
Reinvestment of distributions
|
| | | | — | | | | | | — | | | | | | (0.09) | | | | | | (0.07) | | | | | | (0.07) | | | | | | (0.08) | | | | | | (0.05) | | |
Total capital share transactions | | | | | 0.02 | | | | | | 0.02 | | | | | | (0.06) | | | | | | (0.05) | | | | | | (0.05) | | | | | | (0.06) | | | | | | (0.03) | | |
Net asset value, end of period
|
| | | | $17.91 | | | | | | $16.91 | | | | | | $17.55 | | | | | | $15.22 | | | | | | $15.04 | | | | | | $15.87 | | | | | | $15.09 | | |
Market price, end of period | | | | | $15.42 | | | | | | $14.29 | | | | | | $15.03 | | | | | | $12.71 | | | | | | $12.83 | | | | | | $13.68 | | | | | | $13.07 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Investment Return (a) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Based on market price
|
| | | | 3.3% | | | | | | 13.2% | | | | | | 29.4% | | | | | | 6.9% | | | | | | 0.7% | | | | | | 13.7% | | | | | | 31.8% | | |
Based on net asset value
|
| | | | 2.7% | | | | | | 11.9% | | | | | | 26.2% | | | | | | 9.2% | | | | | | 1.8% | | | | | | 14.3% | | | | | | 29.7% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ratios/Supplemental Data (b) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, end of period (in millions)
|
| | | | $1,811 | | | | | | $1,672 | | | | | | $1,786 | | | | | | $1,513 | | | | | | $1,472 | | | | | | $1,528 | | | | | | $1,422 | | |
Ratio of expenses to average
net assets |
| | | | 0.60% | | | | | | 0.57% | | | | | | 0.56% | | | | | | 0.64% | | | | | | 0.96% (c) | | | | | | 0.58% | | | | | | 0.69% (c) | | |
Ratio of net investment income to average net assets
|
| | | | 1.07% | | | | | | 1.32% | | | | | | 1.30% | | | | | | 1.29% | | | | | | 0.79% (c) | | | | | | 1.29% | | | | | | 1.44% (c) | | |
Portfolio turnover
|
| | | | 65.3% | | | | | | 48.8% | | | | | | 39.2% | | | | | | 32.0% | | | | | | 22.0% | | | | | | 26.6% | | | | | | 55.9% | | |
Number of shares outstanding
at end of period (in 000’s) |
| | | | 101,105 | | | | | | 98,833 | | | | | | 101,736 | | | | | | 99,437 | | | | | | 97,914 | | | | | | 96,287 | | | | | | 94,224 | | |
| | |
Shares
|
| |
Value (a)
|
| ||||||
Common Stocks — 98.7% | | ||||||||||||
Consumer Discretionary — 12.7%
|
| ||||||||||||
Advance Auto Parts, Inc.
|
| | | | 166,500 | | | | | $ | 22,594,050 | | |
Amazon.com, Inc. (b)
|
| | | | 42,800 | | | | | | 72,751,440 | | |
Chipotle Mexican Grill, Inc. (b)
|
| | | | 16,000 | | | | | | 6,901,920 | | |
Comcast Corporation Class A
|
| | | | 286,000 | | | | | | 9,383,660 | | |
Consumer Discretionary Select Sector SPDR Fund
|
| | | | 28,500 | | | | | | 3,115,050 | | |
Dollar General Corporation
|
| | | | 193,937 | | | | | | 19,122,188 | | |
Home Depot, Inc.
|
| | | | 202,700 | | | | | | 39,546,770 | | |
Lowe's Companies, Inc.
|
| | | | 201,100 | | | | | | 19,219,127 | | |
Magna International Inc.
|
| | | | 184,000 | | | | | | 10,695,920 | | |
Netflix, Inc. (b)
|
| | | | 16,100 | | | | | | 6,302,023 | | |
Tractor Supply Company
|
| | | | 183,600 | | | | | | 14,043,564 | | |
Walt Disney Company
|
| | | | 68,800 | | | | | | 7,210,928 | | |
| | | | | 230,886,640 | | | ||||||
Consumer Staples — 7.1%
|
| ||||||||||||
Coca-Cola Company
|
| | | | 161,800 | | | | | | 7,096,548 | | |
Constellation Brands, Inc. Class A
|
| | | | 60,600 | | | | | | 13,263,522 | | |
Costco Wholesale Corporation
|
| | | | 77,900 | | | | | | 16,279,542 | | |
CVS Health Corporation
|
| | | | 174,800 | | | | | | 11,248,380 | | |
Monster Beverage Corporation (b)
|
| | | | 157,100 | | | | | | 9,001,830 | | |
PepsiCo, Inc. (g)
|
| | | | 134,400 | | | | | | 14,632,128 | | |
Philip Morris International Inc.
|
| | | | 295,300 | | | | | | 23,842,522 | | |
Procter & Gamble Company
|
| | | | 131,850 | | | | | | 10,292,211 | | |
Walmart Inc.
|
| | | | 257,300 | | | | | | 22,037,745 | | |
| | | | | 127,694,428 | | | ||||||
Energy — 6.3%
|
| ||||||||||||
Adams Natural Resources Fund, Inc. (c)
|
| | | | 2,186,774 | | | | | | 43,932,290 | | |
Andeavor
|
| | | | 68,000 | | | | | | 8,920,240 | | |
Exxon Mobil Corporation (g)
|
| | | | 308,300 | | | | | | 25,505,659 | | |
Halliburton Company
|
| | | | 354,400 | | | | | | 15,969,264 | | |
Occidental Petroleum Corporation
|
| | | | 112,200 | | | | | | 9,388,896 | | |
Pioneer Natural Resources Company
|
| | | | 57,800 | | | | | | 10,938,072 | | |
| | | | | 114,654,421 | | |
| | |
Shares
|
| |
Value (a)
|
| ||||||
Financials — 13.5%
|
| ||||||||||||
Aflac Incorporated
|
| | | | 316,300 | | | | | $ | 13,607,226 | | |
Bank of America Corp.
|
| | | | 1,470,400 | | | | | | 41,450,576 | | |
Berkshire Hathaway Inc. Class B (b)
|
| | | | 223,400 | | | | | | 41,697,610 | | |
BlackRock, Inc.
|
| | | | 41,400 | | | | | | 20,660,256 | | |
Goldman Sachs Group, Inc.
|
| | | | 50,500 | | | | | | 11,138,785 | | |
Intercontinental Exchange, Inc.
|
| | | | 379,900 | | | | | | 27,941,645 | | |
JPMorgan Chase & Co.
|
| | | | 319,700 | | | | | | 33,312,740 | | |
Lazard Ltd Class A
|
| | | | 198,000 | | | | | | 9,684,180 | | |
SunTrust Banks, Inc.
|
| | | | 378,100 | | | | | | 24,962,162 | | |
Wells Fargo & Company
|
| | | | 358,500 | | | | | | 19,875,240 | | |
| | | | | 244,330,420 | | | ||||||
Health Care — 13.7%
|
| ||||||||||||
Abbott Laboratories
|
| | | | 303,200 | | | | | | 18,492,168 | | |
AbbVie, Inc.
|
| | | | 265,700 | | | | | | 24,617,105 | | |
Alexion Pharmaceuticals, Inc. (b)
|
| | | | 107,200 | | | | | | 13,308,880 | | |
Becton, Dickinson and Company
|
| | | | 97,800 | | | | | | 23,428,968 | | |
Biogen Inc. (b)
|
| | | | 48,900 | | | | | | 14,192,736 | | |
Edwards Lifesciences Corporation (b)
|
| | | | 151,100 | | | | | | 21,995,627 | | |
Laboratory Corporation of America Holdings (b)
|
| | | | 107,700 | | | | | | 19,335,381 | | |
Merck & Co., Inc.
|
| | | | 385,400 | | | | | | 23,393,780 | | |
Pfizer Inc.
|
| | | | 551,040 | | | | | | 19,991,731 | | |
Thermo Fisher Scientific Inc.
|
| | | | 145,400 | | | | | | 30,118,156 | | |
UnitedHealth Group Incorporated
|
| | | | 162,400 | | | | | | 39,843,216 | | |
| | | | 248,717,748 | | | |||||||
Industrials — 10.1%
|
| ||||||||||||
Boeing Company
|
| | | | 101,200 | | | | | | 33,953,612 | | |
Caterpillar Inc.
|
| | | | 139,100 | | | | | | 18,871,697 | | |
Cintas Corporation
|
| | | | 86,500 | | | | | | 16,008,555 | | |
Delta Air Lines, Inc.
|
| | | | 282,200 | | | | | | 13,980,188 | | |
Emerson Electric Co.
|
| | | | 257,800 | | | | | | 17,824,292 | | |
FedEx Corporation
|
| | | | 86,200 | | | | | | 19,572,572 | | |
General Electric Company
|
| | | | 246,500 | | | | | | 3,354,865 | | |
Honeywell International Inc.
|
| | | | 193,000 | | | | | | 27,801,650 | | |
Union Pacific Corporation
|
| | | | 219,500 | | | | | | 31,098,760 | | |
| | | | | 182,466,191 | | |
| | |
Shares
|
| |
Value (a)
|
| ||||||
Information Technology — 25.8%
|
| ||||||||||||
Accenture plc Class A
|
| | | | 157,400 | | | | | $ | 25,749,066 | | |
Adobe Systems Incorporated (b)
|
| | | | 117,200 | | | | | | 28,574,532 | | |
Alphabet Inc. Class A (b)
|
| | | | 30,900 | | | | | | 34,891,971 | | |
Alphabet Inc. Class C (b)
|
| | | | 28,097 | | | | | | 31,346,418 | | |
Apple Inc. (g)
|
| | | | 345,400 | | | | | | 63,936,994 | | |
Broadcom Inc.
|
| | | | 93,100 | | | | | | 22,589,784 | | |
Cisco Systems, Inc.
|
| | | | 378,700 | | | | | | 16,295,461 | | |
Facebook, Inc. Class A (b)
|
| | | | 269,500 | | | | | | 52,369,240 | | |
Lam Research Corporation
|
| | | | 39,400 | | | | | | 6,810,290 | | |
Mastercard Incorporated Class A
|
| | | | 147,700 | | | | | | 29,026,004 | | |
Microsoft Corporation
|
| | | | 836,800 | | | | | | 82,516,848 | | |
Oracle Corporation
|
| | | | 122,200 | | | | | | 5,384,132 | | |
salesforce.com, inc. (b)
|
| | | | 181,200 | | | | | | 24,715,680 | | |
Visa Inc. Class A
|
| | | | 325,700 | | | | | | 43,138,965 | | |
| | | | | 467,345,385 | | | ||||||
Materials — 1.7%
|
| ||||||||||||
DowDuPont Inc.
|
| | | | 206,600 | | | | | | 13,619,072 | | |
Freeport-McMoRan, Inc.
|
| | | | 414,700 | | | | | | 7,157,722 | | |
LyondellBasell Industries N.V.
|
| | | | 93,700 | | | | | | 10,292,945 | | |
| | | | | 31,069,739 | | | ||||||
Real Estate — 3.9%
|
| ||||||||||||
American Tower Corporation
|
| | | | 85,900 | | | | | | 12,384,203 | | |
Prologis, Inc.
|
| | | | 236,100 | | | | | | 15,509,409 | | |
Public Storage
|
| | | | 86,100 | | | | | | 19,532,646 | | |
SBA Communications Corporation Class A (b)
|
| | | | 46,800 | | | | | | 7,727,616 | | |
Simon Property Group, Inc.
|
| | | | 86,600 | | | | | | 14,738,454 | | |
| | | | | 69,892,328 | | | ||||||
Telecommunication Services — 1.2%
|
| ||||||||||||
AT&T Inc.
|
| | | | 402,882 | | | | | | 12,936,551 | | |
Verizon Communications Inc.
|
| | | | 171,600 | | | | | | 8,633,196 | | |
| | | | | 21,569,747 | | | ||||||
Utilities — 2.7%
|
| ||||||||||||
Exelon Corporation
|
| | | | 299,300 | | | | | | 12,750,180 | | |
NextEra Energy, Inc.
|
| | | | 99,000 | | | | | | 16,535,970 | | |
Public Service Enterprise Group Incorporated
|
| | | | 173,900 | | | | | | 9,414,946 | | |
WEC Energy Group Inc.
|
| | | | 166,200 | | | | | | 10,744,830 | | |
| | | | | 49,445,926 | | | ||||||
Total Common Stocks | | ||||||||||||
(Cost $1,205,485,574)
|
| | | | | | | | | | 1,788,072,973 | | |
Other Investments — 0.1% | | ||||||||||||
Financials — 0.1%
|
| ||||||||||||
Adams Funds Advisers (b)(d)
|
| | | | | | | | | | | | |
(Cost $150,000)
|
| | | | | | | | | | 1,047,000 | | |
| | | | | | | | | | | | | |
| | |
Shares
|
| |
Value (a)
|
| ||||||
Short-Term Investments — 1.2% | | ||||||||||||
Money Market Funds — 1.2%
|
| ||||||||||||
Fidelity Investments Money Market Funds - Prime Money Market Portfolio (Institutional Class), 2.06% (e)
|
| | | | 17,992,317 | | | | | $ | 17,999,514 | | |
Northern Institutional Treasury Portfolio, 1.74% (e)
|
| | | | 4,533,618 | | | | | | 4,533,618 | | |
Total Short-Term Investments | | ||||||||||||
(Cost $22,532,133)
|
| | | | | | | | | | 22,533,133 | | |
Total — 100.0% | | ||||||||||||
(Cost $1,228,167,707)
|
| | | | | | | | | | 1,811,653,106 | | |
Other Assets Less Liabilities — 0.0% | | | | | | | | | | | (501,628) | | |
Net Assets — 100.0% | | | | | | | | | |
$
|
1,811,151,478
|
| |
|
Description
|
| | | | | | | | | | |
Value and
Unrealized Appreciation (Assets) |
| |
Value and
Unrealized Depreciation (Liabilities) |
| ||||||||||||
Terms
|
| |
Contract
Type |
| |
Underlying
Security |
| |
Termination
Date |
| |
Notional
Amount |
| |||||||||||||||
Receive total return on underlying
security and pay financing amount based on notional amount and daily U.S. Federal Funds rate plus 0.55%. |
| |
Long
|
| | HD Supply Holdings, Inc. (229,700 shares) | | |
6/14/2019
|
| | | $ | 9,133,287 | | | | | $ | 690,141 | | | | | $ | — | | |
Pay total return on underlying security and receive financing amount based on notional amount and daily U.S. Federal Funds rate less 0.45%.
|
| |
Short
|
| | Industrial Select Sector SPDR Fund (121,800 shares) |
| |
6/14/2019
|
| | | | (9,086,196) | | | | | | 340,929 | | | | | | — | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Receive total return on underlying
security and pay financing amount based on notional amount and daily U.S. Federal Funds rate plus 0.55%. |
| |
Long
|
| | QUALCOMM Incorporated (159,000 shares) | | |
6/26/2019
|
| | | | 9,146,443 | | | | | | — | | | | | | (147,774) | | |
Pay total return on underlying security and receive financing amount based on notional amount and daily U.S. Federal Funds rate less 0.45%.
|
| |
Short
|
| | Technology Select Sector SPDR Fund (130,800 shares) |
| |
6/26/2019
|
| | | | (9,083,798) | | | | | | — | | | | | | (23,275) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Receive total return on underlying
security and pay financing amount based on notional amount and daily U.S. Federal Funds rate plus 0.55%. |
| |
Long
|
| | Cabot Oil & Gas Corporation (394,000 shares) |
| |
7/11/2019
|
| | | | 9,225,549 | | | | | | 138,840 | | | | | | — | | |
Pay total return on underlying security and receive financing amount based on notional amount and daily U.S. Federal Funds rate less 107.5%.
|
| |
Short
|
| | SPDR S&P Oil & Gas Exploration & Production ETF (218,700 shares) |
| |
7/11/2019
|
| | | | (9,233,208) | | | | | | — | | | | | | (195,516) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Description
|
| | | | | | | | | | |
Value and
Unrealized Appreciation (Assets) |
| |
Value and
Unrealized Depreciation (Liabilities) |
| ||||||||||||
Terms
|
| |
Contract
Type |
| |
Underlying
Security |
| |
Termination
Date |
| |
Notional
Amount |
| |||||||||||||||
Receive total return on underlying
security and pay financing amount based on notional amount and daily U.S. Federal Funds rate plus 0.55%. |
| |
Long
|
| | FLIR Systems, Inc. (169,900 shares) | | |
7/25/2019
|
| | | | 9,194,393 | | | | | | — | | | | | | (368,863) | | |
Pay total return on underlying security and receive financing amount based on notional amount and daily U.S. Federal Funds rate less 0.45%.
|
| |
Short
|
| | Technology Select Sector SPDR Fund (128,300 shares) |
| |
7/25/2019
|
| | | | (9,105,207) | | | | | | 194,653 | | | | | | — | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Receive total return on underlying
security and pay financing amount based on notional amount and daily U.S. Federal Funds rate plus 0.55%. |
| |
Long
|
| | Procter & Gamble Company (174,400 shares) | | |
8/2/2019
|
| | | | 13,648,980 | | | | | | — | | | | | | (35,316) | | |
Pay total return on underlying security and receive financing amount based on notional amount and daily U.S. Federal Funds rate less 0.45%.
|
| |
Short
|
| | Consumer Staples Select Sector SPDR Fund (264,300 shares) | | |
8/2/2019
|
| | | | (13,642,082) | | | | | | 22,703 | | | | | | — | | |
Gross unrealized gain (loss) on open total return swap agreements | | | | $ | 1,387,266 | | | | | $ | (770,744) | | | |||||||||||||||
Net unrealized gain on open total return swap agreements (f) | | | | $ | 616,522 | | | | | | | | | |||||||||||||||
|
| | |
Purchases
(Cost) |
| |
Sales
(Proceeds) |
| |
Market Value Held
at June 30, 2018 |
| |||||||||
Abbott Laboratories | | | | $ | 17,790,836 | | | | | | | | | | | $ | 18,492,168 | | |
Accenture plc Class A | | | | | 24,863,427 | | | | | | | | | | | | 25,749,066 | | |
Advance Auto Parts, Inc. | | | | | 18,687,577 | | | | | | | | | | | | 22,594,050 | | |
Aflac Incorporated | | | | | 13,995,073 | | | | | | | | | | | | 13,607,226 | | |
Berkshire Hathaway Inc. Class B | | | | | 22,082,545 | | | | | | | | | | | | 41,697,610 | | |
Biogen Inc. | | | | | 19,451,078 | | | | | $ | 5,427,884 | | | | | | 14,192,736 | | |
Caterpillar Inc. | | | | | 19,701,262 | | | | | | | | | | | | 18,871,697 | | |
Celgene Corporation | | | | | 3,718,465 | | | | | | 13,712,677 | | | | | | — | | |
Chipotle Mexican Grill, Inc. | | | | | 7,461,024 | | | | | | | | | | | | 6,901,920 | | |
Cigna Corporation | | | | | 11,934,824 | | | | | | 9,417,184 | | | | | | — | | |
Cintas Corporation | | | | | 14,203,296 | | | | | | | | | | | | 16,008,555 | | |
Constellation Brands, Inc. Class A | | | | | 13,738,244 | | | | | | | | | | | | 13,263,522 | | |
Consumer Discretionary Select Sector SPDR Fund
|
| | | | 14,802,807 | | | | | | 12,785,984 | | | | | | 3,115,050 | | |
Consumer Staples Select Sector SPDR Fund
|
| | | | 12,438,358 | | | | | | 11,062,441 | | | | | | — | | |
DXC Technology Co. | | | | | 1,787,944 | | | | | | 13,319,898 | | | | | | — | | |
Edwards Lifesciences Corporation | | | | | 20,377,867 | | | | | | | | | | | | 21,995,627 | | |
Emerson Electric Co. | | | | | 18,844,674 | | | | | | | | | | | | 17,824,292 | | |
Exelon Corporation | | | | | 11,532,029 | | | | | | | | | | | | 12,750,180 | | |
Facebook, Inc. Class A | | | | | 26,538,386 | | | | | | 23,387,507 | | | | | | 52,369,240 | | |
FedEx Corporation | | | | | 21,230,939 | | | | | | | | | | | | 19,572,572 | | |
Freeport-McMoRan, Inc. | | | | | 7,969,788 | | | | | | | | | | | | 7,157,722 | | |
Goldman Sachs Group, Inc. | | | | | 21,284,833 | | | | | | 7,264,789 | | | | | | 11,138,785 | | |
JPMorgan Chase & Co. | | | | | 15,417,532 | | | | | | | | | | | | 33,312,740 | | |
Laboratory Corporation of America Holdings
|
| | | | 18,875,904 | | | | | | | | | | | | 19,335,381 | | |
Lazard Ltd Class A | | | | | 11,002,897 | | | | | | | | | | | | 9,684,180 | | |
Materials Select Sector SPDR Fund
|
| | | | 6,108,608 | | | | | | 5,989,062 | | | | | | — | | |
Merck & Co., Inc. | | | | | 23,383,410 | | | | | | | | | | | | 23,393,780 | | |
Monster Beverage Corporation | | | | | 9,157,280 | | | | | | | | | | | | 9,001,830 | | |
Occidental Petroleum Corporation | | | | | 9,489,932 | | | | | | | | | | | | 9,388,896 | | |
Public Storage | | | | | 17,301,715 | | | | | | | | | | | | 19,532,646 | | |
Signature Bank | | | | | 5,073,198 | | | | | | 16,896,597 | | | | | | — | | |
Simon Property Group, Inc. | | | | | 14,905,635 | | | | | | | | | | | | 14,738,454 | | |
Time Warner Inc. | | | | | 9,028,473 | | | | | | 9,837,113* | | | | | | — | | |
Tractor Supply Company | | | | | 13,956,523 | | | | | | | | | | | | 14,043,564 | | |
UnitedHealth Group Incorporated | | | | | 28,473,227 | | | | | | | | | | | | 39,843,216 | | |
Vanguard Information Technology ETF
|
| | | | 8,866,065 | | | | | | 9,234,856 | | | | | | — | | |
WEC Energy Group Inc. | | | | | 10,710,427 | | | | | | | | | | | | 10,744,830 | | |
| | |
Purchases
(Cost) |
| |
Sales
(Proceeds) |
| |
Market Value Held
at June 30, 2018 |
| |||||||||
Wells Fargo & Company | | | | $ | 6,283,445 | | | | | $ | 20,169,344 | | | | | $ | 19,875,240 | | |
AbbVie, Inc. | | | | | | | | | | | 5,731,156 | | | | | | 24,617,105 | | |
Aetna Inc. | | | | | | | | | | | 34,317,961 | | | | | | — | | |
Albemarle Corporation | | | | | | | | | | | 7,919,068 | | | | | | — | | |
American Express Company | | | | | | | | | | | 36,039,329 | | | | | | — | | |
Amgen Inc. | | | | | | | | | | | 21,067,207 | | | | | | — | | |
Apple Inc. | | | | | | | | | | | 22,106,620 | | | | | | 63,936,994 | | |
AvalonBay Communities, Inc. | | | | | | | | | | | 8,536,050 | | | | | | — | | |
Carnival Corporation | | | | | | | | | | | 8,521,451 | | | | | | — | | |
CenterPoint Energy, Inc. | | | | | | | | | | | 10,559,560 | | | | | | — | | |
Chubb Limited | | | | | | | | | | | 10,717,884 | | | | | | — | | |
Citigroup Inc. | | | | | | | | | | | 12,830,704 | | | | | | — | | |
Cognizant Technology Solutions Corporation Class A
|
| | | | | | | | | | 5,658,257 | | | | | | — | | |
Colgate-Palmolive Company | | | | | | | | | | | 11,511,165 | | | | | | — | | |
Comcast Corporation Class A | | | | | | | | | | | 23,659,628 | | | | | | 9,383,660 | | |
Concho Resources Inc. | | | | | | | | | | | 9,340,096 | | | | | | — | | |
Cummins Inc. | | | | | | | | | | | 19,434,821 | | | | | | — | | |
Fortive Corp. | | | | | | | | | | | 20,835,557 | | | | | | — | | |
Johnson & Johnson | | | | | | | | | | | 30,972,857 | | | | | | — | | |
McKesson Corporation | | | | | | | | | | | 9,180,164 | | | | | | — | | |
Parker-Hannifin Corporation | | | | | | | | | | | 17,102,507 | | | | | | — | | |
PepsiCo, Inc. | | | | | | | | | | | 10,457,883 | | | | | | 14,632,128 | | |
Pfizer Inc. | | | | | | | | | | | 5,526,673 | | | | | | 19,991,731 | | |
Prologis, Inc. | | | | | | | | | | | 7,408,813 | | | | | | 15,509,409 | | |
SPDR S&P 500 ETF Trust | | | | | | | | | | | 14,851,502 | | | | | | — | | |
TJX Companies, Inc. | | | | | | | | | | | 18,789,448 | | | | | | — | | |
Utilities Select Sector SPDR Fund | | | | | | | | | | | 6,392,065 | | | | | | — | | |
Waters Corporation | | | | | | | | | | | 11,722,426 | | | | | | — | | |
| | | | | | | | | | | | | | | | | | | |
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 Per Share |
| |
Total
Dividends and Distributions Per Share |
| |
Annual
Distribution Rate* |
| |||||||||||||||||||||||||||
2008 | | | | $ | 840,012 | | | | | | 87,406 | | | | | $ | 9.61 | | | | | $ | 8.03 | | | | | $ | .26 | | | | | $ | .38 | | | | | $ | — | | | | | $ | .64 | | | | | | 5.7% | | |
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 | | |
June 30, 2018
|
| | | | 1,811,151 | | | | | | 101,105 | | | | | | 17.91 | | | | | | 15.42 | | | | | | .14** | | | | | | .01** | | | | | | — | | | | | | .15 | | | | | | — | | |
| | |
Votes For
|
| |
Votes Withheld
|
| ||||||
Enrique R. Arzac | | | | | 80,924,213 | | | | | | 5,656,853 | | |
Kenneth J. Dale | | | | | 81,311,541 | | | | | | 5,269,525 | | |
Frederic A. Escherich | | | | | 81,284,052 | | | | | | 5,297,014 | | |
Roger W. Gale | | | | | 80,966,020 | | | | | | 5,615,046 | | |
Lauriann C. Kloppenburg | | | | | 81,666,256 | | | | | | 4,914,810 | | |
Kathleen T. McGahran | | | | | 81,402,972 | | | | | | 5,178,094 | | |
Craig R. Smith | | | | | 80,941,581 | | | | | | 5,639,485 | | |
Mark E. Stoeckle | | | | | 81,220,698 | | | | | | 5,360,368 | | |
| Enrique R. Arzac (2),(3) | | |
Roger W. Gale (1),(2),(4)
|
| |
Craig R. Smith (3),(4)
|
|
|
Kenneth J. Dale (1), (3),(4)
|
| |
Lauriann C. Kloppenburg (2),(3)
|
| |
Mark E. Stoeckle (1)
|
|
|
Frederic A. Escherich (1),(2),(4)
|
| | Kathleen T. McGahran (1),(5) | | | | |
|
Mark E. Stoeckle
|
| | Chief Executive Officer and President | |
| James P. Haynie, CFA | | |
Executive Vice President
|
|
|
D. Cotton Swindell, CFA
|
| | Executive Vice President | |
|
Brian S. Hook, CFA, CPA
|
| | Vice President, Chief Financial Officer and Treasurer | |
|
Lawrence L. Hooper, Jr.
|
| |
Vice President, General Counsel, Secretary and Chief Compliance Officer
|
|
| Xuying Chang, CFA | | |
Vice President—Research
|
|
| Steven R. Crain, CFA | | |
Vice President—Research
|
|
| Michael E. Rega, CFA | | |
Vice President—Research
|
|
| David R. Schiminger, CFA | | |
Vice President—Research
|
|
| Jeffrey R. Schollaert, CFA | | |
Vice President—Research
|
|
|
Christine M. Sloan, CPA
|
| | Assistant Treasurer and Director of Human Resources | |
Item 2. Code of Ethics.
Item not applicable to semi-annual report.
Item 3. Audit Committee Financial Expert.
Item not applicable to semi-annual report.
Item 4. Principal Accountant Fees and Services.
Item not applicable to semi-annual report.
Item 5. Audit Committee of Listed Registrants.
Item not applicable to semi-annual report.
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. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Item not applicable to semi-annual report.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Item not applicable to semi-annual report.
Item 9. 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 | |||||||||||||
January 2018 | -- | -- | -- | 1,612,522 | ||||||||||||
February 2018 | 27,500 | $ | 15.51 | 27,500 | 1,585,022 | |||||||||||
March 2018 | 67,694 | $ | 14.83 | 67,694 | 1,517,328 | |||||||||||
April 2018 | -- | -- | -- | 1,517,328 | ||||||||||||
May 2018 | 267,343 | $ | 15.25 | 267,343 | 1,249,985 | |||||||||||
June 2018 | 256,478 | $ | 15.60 | 256,478 | 993,507 | |||||||||||
Total | 619,015 | $ | 15.36 | 619,015 |
(1) | There were no shares purchased other than through a publicly announced plan or program. |
(2a) | The Plan was announced on December 11, 2014. |
(2b) | The share amount approved in 2014 was 5% of outstanding shares, or 4,667,000 shares. |
(2c) | The Plan has no expiration date. |
(2d) | None. |
(2e) | None. |
Item 10. 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 11. 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 registrant's most recent fiscal quarter of 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 12. Disclosures of Securities Lending Activities for Closed-End Management Investment Companies.
Item not applicable to semi-annual report.
Item 13. Exhibits.
(a) | (1) | Code of ethics exhibits: 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. | |
(b) | A certification by the registrant's principal executive officer and principal financial officer, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and required by Rule 30a-2(b) under the Investment Company Act of 1940, is attached. |
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/ Mark E. Stoeckle |
Mark E. Stoeckle | |
Chief Executive Officer & President | |
(Principal Executive Officer) | |
Date: | July 26, 2018 |
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/ Mark E. Stoeckle |
Mark E. Stoeckle | |
Chief Executive Officer & President | |
(Principal Executive Officer) | |
Date: | July 26, 2018 |
By: | /s/ Brian S. Hook |
Brian S. Hook | |
Vice President, Chief Financial Officer & Treasurer | |
(Principal Financial Officer) | |
Date: | July 26, 2018 |
Exhibit 99.CERT
CERTIFICATIONS
I, Mark E. Stoeckle, 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(s) 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 most recent fiscal quarter of 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(s) 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: July 26, 2018 | /s/ Mark E. Stoeckle |
Mark E. Stoeckle | |
Chief Executive Officer & President | |
(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(s) 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 most recent fiscal quarter of 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(s) 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: July 26, 2018 | /s/
Brian S. Hook Vice President, Chief Financial Officer and Treasurer (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 period ended June 30, 2018, as filed with the Securities and Exchange Commission on the date hereof (the Report), I, Mark E. Stoeckle, Chief Executive Officer and President 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/
Mark E. Stoeckle Mark E. Stoeckle Chief Executive Officer & President (Principal Executive Officer) |
DATE: | July 26, 2018 |
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 period ended June 30, 2018, as filed with the Securities and Exchange Commission on the date hereof (the Report), I, Brian S. Hook, Vice President, Chief Financial Officer and Treasurer 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 & Treasurer (Principal Financial Officer) |
DATE: | July 26, 2018 |
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.