Adams Diversified Equity Fund Announces Initiatives to Enhance Shareholder Value

8% Annual Rate Managed Distribution Policy and a Tender Offer for 10% of Outstanding Shares at 98% of NAV

BALTIMORE, May 24, 2024 (GLOBE NEWSWIRE) -- Adams Diversified Equity Fund, Inc. (NYSE: ADX) today announced two initiatives reflecting our ongoing commitment to long-term shareholder value creation: the implementation of a managed distribution policy (“Policy”) that will provide a higher annual distribution rate more evenly on a quarterly basis throughout the year and a tender offer expected to commence on July 5, 2024. These initiatives underscore our dedication to delivering long-term value, competitive performance, and stable, consistent distributions to our valued shareholders.

MANAGED DISTRIBUTION POLICY

Under the new Policy, the Fund commits to distribute a minimum 8% annual rate of the Fund’s average net asset value (“NAV”) to shareholders beginning with the third quarter distribution expected to be paid at the end of August 2024. The Fund expects to distribute 2% of average NAV for each quarterly distribution, with the fourth quarter distribution expected to be the greater of 2% of average NAV or the amount needed to satisfy minimum distribution requirements of the Internal Revenue Code for regulated investment companies. Average NAV will be based on the average of the previous four quarter-end NAVs per share prior to each declaration date. The distributions may consist of year-to-date estimated net investment income, capital gains, and/or return of capital, and will be payable in shares of common stock or optionally in cash by specific shareholder election. This Policy will provide regular, more predictable distributions and replaces the 6% minimum annual distribution commitment based on market value that the Fund had established and met since 2011. The Fund’s distribution level will be monitored and may be changed in the future by the Board as warranted.

Fund CEO James Haynie said, “We believe that this new Policy will be another attractive feature of the Fund, adding to its strong value proposition and further benefiting our shareholders. The very strong relative returns and low expense ratio the Fund has provided will now be enhanced by a more consistent, higher level of distributions throughout the year.”

TENDER OFFER

In addition, the Fund will conduct a tender offer for 10% of its outstanding shares at a price of 98% of NAV per share. A tender offer provides liquidity at a predetermined price to shareholders seeking to rebalance their portfolios, without having to sell their shares on the open market. The tender offer period is expected to commence on July 5, 2024 and expire on August 2, 2024.  Specific terms and conditions of the tender offer will be forthcoming in offering materials to be distributed to the Fund's shareholders.