N-30B-2 1 tv538981_n30b2.htm N-30B-2 out - none - 2.386s
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ADAMS
DIVERSIFIED EQUITY
FUND
 
​
FIRST QUARTER REPORT
MARCH 31, 2020
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GET THE LATEST NEWS AND INFORMATION
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Letter to Shareholders
​
Dear Fellow Shareholders,
No one knew what would finally end the longest bull market for stocks in history. After all, the bull market that began on March 9, 2009 endured the European debt crisis, China’s slowing growth, fears over Brexit, and a contentious trade war. In the end, it took a global pandemic to bring the bull down. Governments shuttered large parts of the economy in an effort to control the spread of the coronavirus (COVID-19), creating a massive economic shock to the U.S. and the world. The uncertainty of what was ahead caused the S&P 500 to fall over 20% in just 22 days from its peak on February 19th. This was the fastest change from an all-time high to a bear market in history. After the market fell an additional 10.0%, stocks
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Consumer Discretionary, Industrial, and Utilties were the biggest contributors to our relative outperformance versus the S&P 500.
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did manage to rally off their lows toward the end of the March, but the market experienced some of the most volatile trading since the 1930’s. The S&P 500 ended the quarter down 19.6%, its worst quarter since 1987. Our Fund outperformed the market, but was still down 18.1%.
During the first quarter, travel bans were put in place; schools and non-essential businesses, including restaurants and malls were closed; entire countries went on lockdown; and social distancing became the new normal in an effort to slow the spread of COVID-19. The economic impact of the shutdown will be massive. The U.S. went from a record-low unemployment level of 3.5% to record-high jobless claims in a matter of weeks as millions of businesses announced layoffs and furloughs amid the shutdown.
The Federal Reserve took aggressive action by reducing interest rates to nearly zero and purchasing large quantities of government debt to provide liquidity to the market. In addition, the U.S. government passed a $2.2 trillion rescue package, the largest economic stimulus package ever.
All sectors within the S&P 500 were negative for the first quarter. In our Fund, investments in Consumer Discretionary, Industrials, and Utilities were the biggest contributors to our relative outperformance. Health Care and Communications Services underperformed their benchmarks.
The Consumer Discretionary sector was the strongest contributor to our relative returns for the quarter. While it declined 9.6%, it exceeded its benchmark, which was down 19.3%. Amazon, one of the biggest beneficiaries of the stay-at-home orders, was a key driver of our outperformance in the sector. Travel and leisure stocks, such as hotels and cruise lines, were some of the most challenged, and
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1​
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Letter to Shareholders (continued)
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we benefited by not owning this group. During the quarter, we exited our positions in Tractor Supply Company and Dollar General and used the proceeds to add Target to our Fund. The company has invested heavily over the past few years to enhance its online presence, supply chain, and in-store experience, and is now well positioned to leverage these investments. We also opportunistically added Darden Restaurants, a well-managed casual-dining operator, and Ross Stores, an off-priced retailer, to our portfolio after the market sold off. We view both companies as leaders in their respective categories.
Our Industrials investments outperformed relative to their benchmark, down 24.1% versus 27.1%. We benefited from our decision to reduce exposure to commercial aerospace and airlines in the fourth quarter. Both groups have struggled due to the continued grounding of the 737 Max, global quarantines, and border closures. Improved visibility of government funding drove defense stocks, including our investment in L3Harris Technologies. We added to our position during the quarter because we believe the company’s solid organic revenue growth, combined with integration benefits from its recent acquisition, can lead to favorable earnings revisions. Our transport holdings, such as Kansas City Southern and Union Pacific, performed relatively well toward the end of the quarter as investors focused on cyclicals and the need for supply chain replenishment going forward.
Our commitment to invest in small sectors that are often overlooked, such as Utilities, contributed to our relative returns this quarter. Our investments in this sector declined 5.4%, compared to a 13.5% decline for the benchmark. NextEra Energy was a standout. The company is a clear leader among utilities in renewable development and is also seeing strong revenue growth in Florida, its primary market. NextEra should continue to generate above average returns and we expect to see improving cash flow over the next several years.
Our Health Care investments were disappointing this quarter, declining 14.6%. Although our investments within life sciences, such as Thermo Fisher Scientific, performed relatively well, these were offset by our underweight in pharmaceuticals. We adjusted our holdings in this group by exiting our position in Pfizer and using the proceeds to add Bristol-Myers Squibb, a leader in immuno-oncology research. We believe the company’s recent acquisition of Celgene should add value in the intermediate- and long-term.
For the three months ended March 31, 2020, the total return on the Fund’s net asset value (“NAV”) per share (with dividends and capital gains reinvested) was -18.1%. This compares to a -19.6% total return for the S&P 500 and a -20.1% total return for the Lipper Large-Cap Core Funds Average over the same time period. The total return on the market price of the Fund’s shares for the period was -19.9%.
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Letter to Shareholders (continued)
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For the twelve months ended March 31, 2020, the Fund’s total return on NAV was -5.4%. Comparable figures for the S&P 500 and Lipper Large-Cap Core Funds Average were -7.0% and -8.3%, respectively. The Fund’s total return on market price was -4.7%.
During the quarter, the Fund paid distributions to shareholders of approximately $5.4 million, or $.05 per share, consisting of $.01 net investment income and $.03 long-term capital gain realized in 2019, and $.01 net investment income realized in 2020. On April 9, 2020, an additional net investment income distribution of  $.05 per share was declared for payment on June 1, 2020. These constitute the first two payments toward our annual 6% minimum distribution rate commitment. Additionally, the Fund repurchased 114,792 shares of its Common Stock during the past three months. The shares were repurchased at an average price of $11.57 and a weighted average discount to NAV of 15.1%.
This has been the hardest letter I have had to write since joining Adams Funds. It is an uncertain time in our country as we face a global pandemic, interest rates at near zero, an oil-price war, and a U.S. presidential election, which have never occurred at the same time. We are focused on what we can control, which is to execute our disciplined investment process with a steady, thoughtful hand. We are grateful for your trust in us during these challenging times and do not take it for granted.
By order of the Board of Directors,
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Mark E. Stoeckle
Chief Executive Officer & President
April 9, 2020
3
​
Summary Financial Information
​
(unaudited)
​ ​ ​
2020
 ​ ​
2019
 ​
At March 31: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Net asset value per share ​ ​ ​ $ 14.64 ​ ​ ​ ​ $ 16.92 ​ ​
Market price per share ​ ​ ​ $ 12.59 ​ ​ ​ ​ $ 14.44 ​ ​
Shares outstanding ​ ​ ​ ​ 108,750,795 ​ ​ ​ ​ ​ 106,011,023 ​ ​
Total net assets ​ ​ ​ $ 1,591,765,312 ​ ​ ​ ​ $ 1,794,035,673 ​ ​
Average net assets ​ ​ ​ $ 1,820,537,084 ​ ​ ​ ​ $ 1,710,376,684 ​ ​
Unrealized appreciation on investments ​ ​ ​ $ 312,309,428 ​ ​ ​ ​ $ 587,649,833 ​ ​
For the three months ended March 31: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Net investment income ​ ​ ​ $ 5,451,601 ​ ​ ​ ​ $ 4,222,551 ​ ​
Net realized gain (loss) ​ ​ ​ $ 49,396,647 ​ ​ ​ ​ $ 18,328,245 ​ ​
Cost of shares repurchased ​ ​ ​ $ 1,328,103 ​ ​ ​ ​ $ 2,762,328 ​ ​
Shares repurchased ​ ​ ​ ​ 114,792 ​ ​ ​ ​ ​ 194,763 ​ ​
Total return (based on market price) ​ ​ ​ ​ -19.9% ​ ​ ​ ​ ​ 14.8% ​ ​
Total return (based on net asset value) ​ ​ ​ ​ -18.1% ​ ​ ​ ​ ​ 14.0% ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Key ratios: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Expenses to average net assets* ​ ​ ​ ​ 0.74% ​ ​ ​ ​ ​ 0.63% ​ ​
Net investment income to average net assets* ​ ​ ​ ​ 1.20% ​ ​ ​ ​ ​ 1.12% ​ ​
Portfolio turnover* ​ ​ ​ ​ 81.2% ​ ​ ​ ​ ​ 68.4% ​ ​
Net cash & short-term investments to net assets ​ ​ ​ ​ 0.8% ​ ​ ​ ​ ​ 0.5% ​ ​
*
Annualized
​
Ten Largest Equity Portfolio Holdings
​
March 31, 2020
(unaudited)
​ ​ ​
Market Value
​ ​
Percent
of Net Assets
​
Microsoft Corporation ​ ​ ​ $ 112,794,192 ​ ​ ​ ​ ​ 7.1% ​ ​
Apple Inc. ​ ​ ​ ​ 74,328,967 ​ ​ ​ ​ ​ 4.7 ​ ​
Amazon.com, Inc. ​ ​ ​ ​ 73,309,472 ​ ​ ​ ​ ​ 4.6 ​ ​
Alphabet Inc. Class A & Class C ​ ​ ​ ​ 60,776,129 ​ ​ ​ ​ ​ 3.8 ​ ​
UnitedHealth Group Incorporated ​ ​ ​ ​ 34,389,502 ​ ​ ​ ​ ​ 2.1 ​ ​
Visa Inc. Class A ​ ​ ​ ​ 34,109,104 ​ ​ ​ ​ ​ 2.1 ​ ​
JPMorgan Chase & Co. ​ ​ ​ ​ 32,833,941 ​ ​ ​ ​ ​ 2.1 ​ ​
Honeywell International Inc. ​ ​ ​ ​ 27,159,370 ​ ​ ​ ​ ​ 1.7 ​ ​
Thermo Fisher Scientific Inc. ​ ​ ​ ​ 26,601,680 ​ ​ ​ ​ ​ 1.7 ​ ​
Coca-Cola Company ​ ​ ​ ​ 26,567,700 ​ ​ ​ ​ ​ 1.7 ​ ​
​ ​ ​ ​ $ 502,870,057 ​ ​ ​ ​ ​ 31.6% ​ ​
4​
​
Schedule of Investments
​
March 31, 2020
(unaudited)
​ ​ ​
Shares
 ​ ​
Value (a)
 ​
Common Stocks — 99.2% ​
Communication Services — 9.3%
 ​
Alphabet Inc. Class A (b)
 ​ ​ ​ ​ 41,100 ​ ​ ​ ​ $ 47,756,145 ​ ​
Alphabet Inc. Class C (b)
 ​ ​ ​ ​ 11,197 ​ ​ ​ ​ ​ 13,019,984 ​ ​
AT&T Inc.
 ​ ​ ​ ​ 590,982 ​ ​ ​ ​ ​ 17,227,125 ​ ​
Comcast Corporation Class A
 ​ ​ ​ ​ 668,200 ​ ​ ​ ​ ​ 22,972,716 ​ ​
Facebook, Inc. Class A (b)
 ​ ​ ​ ​ 141,900 ​ ​ ​ ​ ​ 23,668,920 ​ ​
Netflix, Inc. (b)
 ​ ​ ​ ​ 15,000 ​ ​ ​ ​ ​ 5,632,500 ​ ​
Verizon Communications Inc.
 ​ ​ ​ ​ 86,800 ​ ​ ​ ​ ​ 4,663,764 ​ ​
Walt Disney Company
 ​ ​ ​ ​ 132,200 ​ ​ ​ ​ ​ 12,770,520 ​ ​
​ ​ ​ ​ ​ 147,711,674 ​ ​
Consumer Discretionary — 9.9%
 ​
Amazon.com, Inc. (b)
 ​ ​ ​ ​ 37,600 ​ ​ ​ ​ ​ 73,309,472 ​ ​
Chipotle Mexican Grill, Inc. (b)
 ​ ​ ​ ​ 15,100 ​ ​ ​ ​ ​ 9,881,440 ​ ​
Darden Restaurants, Inc.
 ​ ​ ​ ​ 26,900 ​ ​ ​ ​ ​ 1,464,974 ​ ​
Las Vegas Sands Corp.
 ​ ​ ​ ​ 54,100 ​ ​ ​ ​ ​ 2,297,627 ​ ​
Lowe's Companies, Inc.
 ​ ​ ​ ​ 152,800 ​ ​ ​ ​ ​ 13,148,440 ​ ​
Magna International Inc.
 ​ ​ ​ ​ 86,800 ​ ​ ​ ​ ​ 2,770,656 ​ ​
NIKE, Inc. Class B
 ​ ​ ​ ​ 238,000 ​ ​ ​ ​ ​ 19,692,120 ​ ​
Ross Stores, Inc.
 ​ ​ ​ ​ 44,300 ​ ​ ​ ​ ​ 3,852,771 ​ ​
Starbucks Corporation
 ​ ​ ​ ​ 218,100 ​ ​ ​ ​ ​ 14,337,894 ​ ​
Target Corporation
 ​ ​ ​ ​ 169,700 ​ ​ ​ ​ ​ 15,777,009 ​ ​
Williams-Sonoma, Inc.
 ​ ​ ​ ​ 20,600 ​ ​ ​ ​ ​ 875,912 ​ ​
​ ​ ​ ​ ​ 157,408,315 ​ ​
Consumer Staples — 7.8%
 ​
Coca-Cola Company
 ​ ​ ​ ​ 600,400 ​ ​ ​ ​ ​ 26,567,700 ​ ​
Consumer Staples Select Sector SPDR Fund
 ​ ​ ​ ​ 86,600 ​ ​ ​ ​ ​ 4,717,102 ​ ​
Costco Wholesale Corporation
 ​ ​ ​ ​ 63,600 ​ ​ ​ ​ ​ 18,134,268 ​ ​
Mondelez International, Inc. Class A
 ​ ​ ​ ​ 348,100 ​ ​ ​ ​ ​ 17,432,848 ​ ​
PepsiCo, Inc.
 ​ ​ ​ ​ 118,700 ​ ​ ​ ​ ​ 14,255,870 ​ ​
Philip Morris International Inc.
 ​ ​ ​ ​ 263,500 ​ ​ ​ ​ ​ 19,224,960 ​ ​
Procter & Gamble Company
 ​ ​ ​ ​ 115,350 ​ ​ ​ ​ ​ 12,688,500 ​ ​
Walmart Inc.
 ​ ​ ​ ​ 101,000 ​ ​ ​ ​ ​ 11,475,620 ​ ​
​ ​ ​ ​ ​ 124,496,868 ​ ​
Energy — 3.0%
 ​
Adams Natural Resources Fund, Inc. (c)
 ​ ​ ​ ​ 2,186,774 ​ ​ ​ ​ ​ 18,128,356 ​ ​
Chevron Corporation
 ​ ​ ​ ​ 163,300 ​ ​ ​ ​ ​ 11,832,718 ​ ​
ConocoPhillips
 ​ ​ ​ ​ 195,100 ​ ​ ​ ​ ​ 6,009,080 ​ ​
Exxon Mobil Corporation
 ​ ​ ​ ​ 165,600 ​ ​ ​ ​ ​ 6,287,832 ​ ​
Pioneer Natural Resources Company
 ​ ​ ​ ​ 76,800 ​ ​ ​ ​ ​ 5,387,520 ​ ​
​ ​ ​ ​ ​ 47,645,506 ​ ​
5
​
Schedule of Investments (continued)
​
March 31, 2020
(unaudited)
​ ​ ​
Shares
 ​ ​
Value (a)
 ​
Financials — 11.1%
 ​
Allstate Corporation
 ​ ​ ​ ​ 90,900 ​ ​ ​ ​ $ 8,338,257 ​ ​
Bank of America Corp.
 ​ ​ ​ ​ 1,128,100 ​ ​ ​ ​ ​ 23,949,563 ​ ​
Berkshire Hathaway Inc. Class B (b)
 ​ ​ ​ ​ 107,600 ​ ​ ​ ​ ​ 19,672,508 ​ ​
Citigroup Inc.
 ​ ​ ​ ​ 35,600 ​ ​ ​ ​ ​ 1,499,472 ​ ​
Hartford Financial Services Group, Inc.
 ​ ​ ​ ​ 45,600 ​ ​ ​ ​ ​ 1,606,944 ​ ​
Intercontinental Exchange, Inc.
 ​ ​ ​ ​ 226,700 ​ ​ ​ ​ ​ 18,306,025 ​ ​
JPMorgan Chase & Co.
 ​ ​ ​ ​ 364,700 ​ ​ ​ ​ ​ 32,833,941 ​ ​
MetLife, Inc.
 ​ ​ ​ ​ 420,300 ​ ​ ​ ​ ​ 12,848,571 ​ ​
S&P Global, Inc.
 ​ ​ ​ ​ 71,800 ​ ​ ​ ​ ​ 17,594,590 ​ ​
T. Rowe Price Group
 ​ ​ ​ ​ 167,400 ​ ​ ​ ​ ​ 16,346,610 ​ ​
Travelers Companies, Inc.
 ​ ​ ​ ​ 119,700 ​ ​ ​ ​ ​ 11,892,195 ​ ​
Wells Fargo & Company
 ​ ​ ​ ​ 437,600 ​ ​ ​ ​ ​ 12,559,120 ​ ​
​ ​ ​ ​ ​ 177,447,796 ​ ​
Health Care — 14.2%
 ​
Abbott Laboratories
 ​ ​ ​ ​ 225,000 ​ ​ ​ ​ ​ 17,754,750 ​ ​
AbbVie, Inc.
 ​ ​ ​ ​ 322,700 ​ ​ ​ ​ ​ 24,586,513 ​ ​
Agilent Technologies, Inc.
 ​ ​ ​ ​ 177,100 ​ ​ ​ ​ ​ 12,683,902 ​ ​
Bristol-Myers Squibb Company
 ​ ​ ​ ​ 152,900 ​ ​ ​ ​ ​ 8,522,646 ​ ​
CVS Health Corporation
 ​ ​ ​ ​ 296,900 ​ ​ ​ ​ ​ 17,615,077 ​ ​
Edwards Lifesciences Corporation (b)
 ​ ​ ​ ​ 62,100 ​ ​ ​ ​ ​ 11,713,302 ​ ​
HCA Healthcare Inc
 ​ ​ ​ ​ 17,300 ​ ​ ​ ​ ​ 1,554,405 ​ ​
Health Care Select Sector SPDR Fund
 ​ ​ ​ ​ 26,100 ​ ​ ​ ​ ​ 2,311,938 ​ ​
Johnson & Johnson
 ​ ​ ​ ​ 200,500 ​ ​ ​ ​ ​ 26,291,565 ​ ​
Medtronic plc
 ​ ​ ​ ​ 222,700 ​ ​ ​ ​ ​ 20,083,086 ​ ​
Merck & Co., Inc.
 ​ ​ ​ ​ 289,300 ​ ​ ​ ​ ​ 22,258,742 ​ ​
Thermo Fisher Scientific Inc.
 ​ ​ ​ ​ 93,800 ​ ​ ​ ​ ​ 26,601,680 ​ ​
UnitedHealth Group Incorporated
 ​ ​ ​ ​ 137,900 ​ ​ ​ ​ ​ 34,389,502 ​ ​
​ ​ ​ ​ 226,367,108 ​ ​
Industrials — 8.5%
 ​
Caterpillar Inc.
 ​ ​ ​ ​ 94,100 ​ ​ ​ ​ ​ 10,919,364 ​ ​
Cintas Corporation
 ​ ​ ​ ​ 31,000 ​ ​ ​ ​ ​ 5,369,820 ​ ​
General Electric Company
 ​ ​ ​ ​ 1,410,022 ​ ​ ​ ​ ​ 11,195,575 ​ ​
Honeywell International Inc.
 ​ ​ ​ ​ 203,000 ​ ​ ​ ​ ​ 27,159,370 ​ ​
Kansas City Southern
 ​ ​ ​ ​ 138,500 ​ ​ ​ ​ ​ 17,614,430 ​ ​
L3Harris Technologies Inc.
 ​ ​ ​ ​ 112,300 ​ ​ ​ ​ ​ 20,227,476 ​ ​
Lincoln Electric Holdings, Inc.
 ​ ​ ​ ​ 111,800 ​ ​ ​ ​ ​ 7,714,200 ​ ​
Parker-Hannifin Corporation
 ​ ​ ​ ​ 89,200 ​ ​ ​ ​ ​ 11,571,916 ​ ​
Union Pacific Corporation
 ​ ​ ​ ​ 148,300 ​ ​ ​ ​ ​ 20,916,232 ​ ​
United Rentals, Inc. (b)
 ​ ​ ​ ​ 24,500 ​ ​ ​ ​ ​ 2,521,050 ​ ​
​ ​ ​ ​ ​ 135,209,433 ​ ​
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​
Schedule of Investments (continued)
​
March 31, 2020
(unaudited)
​ ​ ​
Shares
 ​ ​
Value (a)
 ​
Information Technology — 25.4%
 ​
Accenture plc Class A
 ​ ​ ​ ​ 39,500 ​ ​ ​ ​ $ 6,448,770 ​ ​
Adobe Inc. (b)
 ​ ​ ​ ​ 66,300 ​ ​ ​ ​ ​ 21,099,312 ​ ​
Amphenol Corporation Class A
 ​ ​ ​ ​ 39,300 ​ ​ ​ ​ ​ 2,864,184 ​ ​
Apple Inc.
 ​ ​ ​ ​ 292,300 ​ ​ ​ ​ ​ 74,328,967 ​ ​
Applied Materials, Inc.
 ​ ​ ​ ​ 222,500 ​ ​ ​ ​ ​ 10,194,950 ​ ​
Cisco Systems, Inc.
 ​ ​ ​ ​ 292,800 ​ ​ ​ ​ ​ 11,509,968 ​ ​
Fidelity National Information Services, Inc.
 ​ ​ ​ ​ 123,700 ​ ​ ​ ​ ​ 15,046,868 ​ ​
Intel Corporation
 ​ ​ ​ ​ 167,700 ​ ​ ​ ​ ​ 9,075,924 ​ ​
Lam Research Corporation
 ​ ​ ​ ​ 55,100 ​ ​ ​ ​ ​ 13,224,000 ​ ​
Mastercard Incorporated Class A
 ​ ​ ​ ​ 96,400 ​ ​ ​ ​ ​ 23,286,384 ​ ​
Microsoft Corporation
 ​ ​ ​ ​ 715,200 ​ ​ ​ ​ ​ 112,794,192 ​ ​
Oracle Corporation
 ​ ​ ​ ​ 122,200 ​ ​ ​ ​ ​ 5,905,926 ​ ​
salesforce.com, inc. (b)
 ​ ​ ​ ​ 134,800 ​ ​ ​ ​ ​ 19,408,504 ​ ​
Technology Select Sector SPDR Fund
 ​ ​ ​ ​ 200,000 ​ ​ ​ ​ ​ 16,074,000 ​ ​
Texas Instruments Incorporated
 ​ ​ ​ ​ 164,100 ​ ​ ​ ​ ​ 16,398,513 ​ ​
VeriSign, Inc (b)
 ​ ​ ​ ​ 68,200 ​ ​ ​ ​ ​ 12,282,138 ​ ​
Visa Inc. Class A
 ​ ​ ​ ​ 211,700 ​ ​ ​ ​ ​ 34,109,104 ​ ​
​ ​ ​ ​ ​ 404,051,704 ​ ​
Materials — 1.8%
 ​
DuPont de Nemours, Inc.
 ​ ​ ​ ​ 55,100 ​ ​ ​ ​ ​ 1,878,910 ​ ​
Linde plc
 ​ ​ ​ ​ 76,000 ​ ​ ​ ​ ​ 13,148,000 ​ ​
LyondellBasell Industries N.V.
 ​ ​ ​ ​ 71,800 ​ ​ ​ ​ ​ 3,563,434 ​ ​
Sherwin-Williams Company
 ​ ​ ​ ​ 20,200 ​ ​ ​ ​ ​ 9,282,304 ​ ​
​ ​ ​ ​ ​ 27,872,648 ​ ​
Real Estate — 3.2%
 ​
American Tower Corporation
 ​ ​ ​ ​ 73,600 ​ ​ ​ ​ ​ 16,026,400 ​ ​
AvalonBay Communities, Inc.
 ​ ​ ​ ​ 69,300 ​ ​ ​ ​ ​ 10,198,881 ​ ​
Equinix, Inc.
 ​ ​ ​ ​ 11,300 ​ ​ ​ ​ ​ 7,057,641 ​ ​
Prologis, Inc.
 ​ ​ ​ ​ 210,400 ​ ​ ​ ​ ​ 16,909,848 ​ ​
​ ​ ​ ​ ​ 50,192,770 ​ ​
S&P 500 Index — 1.4%
 ​
SPDR S&P 500 ETF Trust
 ​ ​ ​ ​ 88,600 ​ ​ ​ ​ ​ 22,836,650 ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Utilities — 3.6%
 ​
Ameren Corporation
 ​ ​ ​ ​ 161,600 ​ ​ ​ ​ ​ 11,769,328 ​ ​
FirstEnergy Corp.
 ​ ​ ​ ​ 261,600 ​ ​ ​ ​ ​ 10,482,312 ​ ​
NextEra Energy, Inc.
 ​ ​ ​ ​ 90,300 ​ ​ ​ ​ ​ 21,727,986 ​ ​
WEC Energy Group Inc.
 ​ ​ ​ ​ 156,100 ​ ​ ​ ​ ​ 13,757,093 ​ ​
​ ​ ​ ​ ​ 57,736,719 ​ ​
​
7
​
Schedule of Investments (continued)
​
March 31, 2020
(unaudited)
​ ​ ​
Shares
 ​ ​
Value (a)
 ​
Total Common Stocks ​
(Cost $1,266,983,763)
 ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 1,578,977,191
Other Investments — 0.0% ​
Financials — 0.0%
 ​
Adams Funds Advisers, LLC (b)(d)
 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
(Cost $150,000)
 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 466,000
Short-Term Investments — 0.7% ​
Money Market Funds — 0.7%
 ​
Northern Institutional Treasury Portfolio, 0.45% (e)
 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
(Cost $11,674,637)
 ​ ​ ​ ​ 11,674,637 ​ ​ ​ ​ ​ 11,674,637
Total — 99.9% ​
(Cost $1,278,808,400)
 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1,591,117,828
Other Assets Less Liabilities — 0.1% ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 647,484
Net Assets — 100.0%
 ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 1,591,765,312
​
(a)
Common stocks are listed on the New York Stock Exchange or NASDAQ and are valued at the last reported sale price on the day of valuation.
​
(b)
Presently non-dividend paying.
​
(c)
Non-controlled affiliate, a closed-end sector fund, registered as an investment company under the Investment Company Act of 1940.
​
(d)
Controlled affiliate valued using fair value procedures.
​
(e)
Rate presented is as of period-end and represents the annualized yield earned over the previous seven days.
​
Information regarding transactions in equity securities during the quarter can be found on our website at: www.adamsfunds.com.
 
 
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​
Disclaimers​
This report contains “forward-looking statements” within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934. By their nature, all forward-looking statements involve risks and uncertainties, and actual results could differ materially from those contemplated by the forward-looking statements. Several factors that could materially affect the Fund’s actual results are the performance of the portfolio of stocks held by the Fund, the conditions in the U.S. and international financial markets, the price at which shares of the Fund will trade in the public markets, and other factors discussed in the Fund’s periodic filings with the Securities and Exchange Commission.​
This report is transmitted to the shareholders of the Fund for their information. It is not a prospectus, circular or representation intended for use in the purchase or sale of shares of the Fund or of any securities mentioned in the report. The rates of return will vary and the principal value of an investment will fluctuate. Shares, if sold, may be worth more or less than their original cost. Past performance is no guarantee of future investment results.
8​
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Adams Diversified Equity Fund, Inc.
​
Board of Directors
​ 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) ​ ​ ​ ​
(1)
Member of Executive Committee
​
(2)
Member of Audit Committee
​
(3)
Member of Compensation Committee
​
(4)
Member of Nominating and Governance Committee
​
(5)
Chair of the Board
​
Officers
​ 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
 ​
​ Janis F. Kerns ​ ​
General Counsel, Secretary and Chief Compliance Officer
 ​
​ Gregory W. Buckley ​ ​
Vice President—Research
 ​
​ Xuying Chang, CFA ​ ​
Vice President—Research
 ​
​ Steven R. Crain, CFA ​ ​
Vice President—Research
 ​
​ Michael A. Kijesky, 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 ​
​
500 East Pratt Street, Suite 1300, Baltimore, MD 21202
410.752.5900   800.638.2479
Website: www.adamsfunds.com
Email: investorrelations@adamsfunds.com
Tickers: ADX (NYSE), XADEX (NASDAQ)
Counsel: Norton Rose Fulbright US LLP
Independent Registered Public Accounting Firm: PricewaterhouseCoopers LLP
Custodian of Securities: The Northern Trust Company
Transfer Agent & Registrar: American Stock Transfer & Trust Company, LLC
Stockholder Relations Department
6201 15th Avenue
Brooklyn, NY 11219
(877) 260-8188
Website: www.astfinancial.com
Email: info@astfinancial.com