# EDGAR Filing Document

**Accession Number:** 0000002230
**File Stem:** 0001104659-25-072587
**Filing Date:** 2025-7
**Character Count:** 88956
**Document Hash:** fbe25358d526d3b49973bcae6a6dd560
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001104659-25-072587.hdr.sgml**: 20250731

**ACCESSION NUMBER**: 0001104659-25-072587

**CONFORMED SUBMISSION TYPE**: N-CSRS

**PUBLIC DOCUMENT COUNT**: 9

**CONFORMED PERIOD OF REPORT**: 20250630

**FILED AS OF DATE**: 20250731

**DATE AS OF CHANGE**: 20250731

**EFFECTIVENESS DATE**: 20250731

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** ADAMS DIVERSIFIED EQUITY FUND, INC.
- **CENTRAL INDEX KEY:** 0000002230

**ORGANIZATION NAME:**
- **EIN:** 134912740
- **STATE OF INCORPORATION:** MD
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** N-CSRS
- **SEC ACT:** 1940 Act
- **SEC FILE NUMBER:** 811-00248
- **FILM NUMBER:** 251170676

**BUSINESS ADDRESS:**
- **STREET 1:** 500 EAST PRATT STREET
- **STREET 2:** SUITE 1300
- **CITY:** BALTIMORE
- **STATE:** MD
- **ZIP:** 21202
- **BUSINESS PHONE:** 4107525900

**MAIL ADDRESS:**
- **STREET 1:** 500 EAST PRATT STREET
- **STREET 2:** SUITE 1300
- **CITY:** BALTIMORE
- **STATE:** MD
- **ZIP:** 21202

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** ADAMS DIVERSIFIED EQUITY FUND
- **DATE OF NAME CHANGE:** 20150331

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** ADAMS EXPRESS CO
- **DATE OF NAME CHANGE:** 19920703

**FORM N-CSR**

**CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES**

**Investment Company Act file number: 811-00248**

**ADAMS DIVERSIFIED EQUITY FUND, INC.**

(Exact name of registrant as specified in charter)

**500 East Pratt Street, Suite 1300, Baltimore, Maryland 21202**

(Address of principal executive offices)

**Janis F. Kerns<br> Adams Diversified Equity Fund, Inc.<br> 500 East Pratt Street, Suite 1300<br> Baltimore, Maryland 21202**

(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, 2025

**Item 1. Reports to Stockholders.**

## ADAMS <br>DIVERSIFIED EQUITY FUND SEMI-ANNUAL REPORT JUNE 30, 2025 GET THE LATEST NEWS AND INFORMATION adamsfunds.com/sign-up
Managed Distribution Policy

The Board of Directors of Adams Diversified Equity Fund, Inc. (the "Fund") adopted a Managed Distribution Policy ("MDP") to enhance long-term shareholder value by paying level quarterly distributions at a committed rate of 8% of average net asset value ("NAV") per year. Distributions in accordance with the MDP began in the third quarter of 2024.

The Fund pays distributions four times a year. Distributions under the MDP can be derived from net investment income, realized capital gains, or possibly, returns of capital, and are payable in newly issued shares of common stock unless a shareholder specifically elects to receive cash. The Fund has committed to distribute 2% of average NAV for each quarterly distribution, with the fourth quarter distribution 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 is based on the average of the previous four quarter-end NAVs per share prior to each declaration date.

With each distribution, the Fund will issue a notice to shareholders that will provide detailed information regarding the amount and composition of the distribution and other related information. The amounts and sources of distributions reported in the notice to shareholders are only estimates and are not being provided for tax reporting purposes. The actual amounts and sources of the distributions for tax reporting purposes will depend upon the Fund's investment experience during its fiscal year and may be subject to changes based on tax regulations. Shareholders will receive a Form 1099-DIV in January for the previous calendar year that will indicate how to report these distributions for federal income tax purposes.

#### Disclaimers
The primary purpose of the MDP is to provide shareholders with a constant, but not guaranteed, rate of distribution each quarter. You should not draw any conclusions about the Fund's investment performance from the amount of the current distribution or from the terms of the Fund's MDP. The Board may amend or terminate the MDP at any time without prior notice to shareholders. However, at this time, there are no reasonably foreseeable circumstances that might cause the termination of the MDP.

------

Letter to Shareholders

Dear Fellow Shareholders,

Despite high levels of volatility and uncertainty, the S&P 500 Index rallied to an all-time high to close the first half of 2025. The year started strong amid optimism about business-friendly tax and regulatory policies from the Trump administration. That lasted only until mid-February, when the threat of high tariffs and their potential impact on the economy began to influence the market's behavior. Fears of a recession and even stagflation led to a first quarter decline in the Index.

![[MISSING IMAGE: lg_adamsreportsidebar.jpg]](tm2517078d1semianlrpti004.jpg)

*"Our Fund posted a 7.8% return on net asset value and a 12.4% return on market price, outperforming the 6.2% return of the S&P 500 during the six-month period."*

In early April, the "Liberation Day" tariff announcement produced another severe pullback in the equity markets, but recessionary fears receded as the tariffs were suspended amid ongoing trade negotiations. Meanwhile, strong corporate earnings and broadly positive economic data suggested resilient growth, and markets rallied. The S&P 500 climbed more than 20% from its April 8 low, advancing 6.2% in the first half of 2025.

Investors shook off early worries about the AI space, fueled by the reveal of Chinese start-up DeepSeek's cheaply-developed AI model. There were also plenty of other issues the market had to discount, including ongoing tariff and trade uncertainty, heightened geopolitical tensions, concerns about the rising deficit associated with President Trump's domestic policy bill, and weakening consumer confidence. In addition, U.S. gross domestic product contracted in the first quarter for the first time since early 2022.

While the first half of 2025 featured two dramatic market downturns and countless headlines that could, and at times did, shake investor confidence, there was never a sense of panic. We took comfort in the fact that the market remained focused on the things that drive results. Earnings continued to surprise to the upside, and revenues, profit margins, and free cash flow broadly improved. Companies that were executing well, with solid earnings growth and compelling long-term stories, continued to fuel market gains. We were pleased to see that investors did not get carried away with all the noise and uncertainty and believe it was a sign that the markets were behaving in a rational fashion.

In a six-month period that saw multiple shifts in sector leadership, Industrials and Communication Services generated the strongest returns in the S&P 500, followed by Utilities, Financials, and Information Technology. The Technology sector led the post-April rally, and, in the end, nine of 11 sectors were positive, with only Consumer Discretionary and Health Care declining during the period.

Our Fund posted a 7.8% return on net asset value and a 12.4% return on market price, outperforming the 6.2% return of the S&P 500 during the six-month period. Nine of 11 sectors contributed to our relative performance versus the S&P 500 in

------

Letter to Shareholders (continued)

the first half of the year, led by Consumer Discretionary, Health Care, and Financials. Consumer Staples and Communication Services were also substantial contributors. In contrast, Technology was the only notable detractor.

Our Consumer Discretionary holdings advanced 1.7%, versus a sector decline of 2.6%. Our positions in Uber Technologies and Booking Holdings drove the relative outperformance. Uber's first-quarter revenue growth was solid, lifted by strength in international markets and the company's partnership with autonomous taxi service Waymo, which launched in early 2025 to high utilization rates and productivity. Booking Holdings, which operates booking.com, Priceline, OpenTable, and Kayak, among other brands, continued to beat revenue and earnings forecasts, aided by its strength outside the United States.

In Health Care, the Fund benefited from strong stock selection within the medical services group. Our holdings advanced 2.5% while the sector declined 1.1% in the Index. Our position in drug distributor Cencora was a key contributor. The company continued to benefit from robust demand and sales growth for GLP-1 diabetes and weight loss drugs and higher-margin specialty medications. Revenues and profits surpassed expectations, and Cencora raised its full-year profit forecast in May. Two new additions to the Fund, diabetes-focused medical device maker Insulet and laboratory testing firm Quest Diagnostics, also boosted relative performance.

Our Financials holdings posted an 11.6% gain, benefiting from strong relative performance across all industry groups. Goldman Sachs Group shares increased on strong earnings driven by revenue growth from equities trading and financing. In the banking industry, JPMorgan Chase was a key contributor. The company continued to beat expectations for revenues and earnings amid robust trading and fee growth despite ongoing economic uncertainty. Our holding in Capital One Financial improved on continued strong consumer credit trends and the operating benefits expected from the acquisition of Discover Financial Services. American International Group provided significant upside performance during the market's decline from February to early April.

Conversely, the Technology sector was the largest detractor from relative return in the first half of 2025, due in part to a pullback in many AI-related stocks. Shares of cloud networking provider Arista Networks declined sharply after the January release of DeepSeek's AI model and failed to fully recover. The company's first quarter results handily beat guidance, and we continue to believe that Arista will play a key role as the AI build-out continues.

For the six months ended June 30, 2025, the total return on the Fund's net asset value ("NAV") per share (with dividends and capital gains reinvested) was 7.8%. This compares to a 6.2% total return for the S&P 500 and a 5.7% total return for the Morningstar U.S. Large Blend category over the same time period. The total return on the market price of the Fund's shares for the period was 12.4%.

For the twelve months ended June 30, 2025, the Fund's total return on NAV was 15.1%. Comparable figures for the S&P 500 and the Morningstar U.S. Large Blend category were 15.2% and 13.6%, respectively. The Fund's total return on market price was 18.0%.

------

Letter to Shareholders (continued)

During the first half of this year, the Fund paid distributions to shareholders in the amount of $109.9 million, or $.93 per share. On July 17, 2025, an additional distribution of $.46 per share was declared for payment on August 28, 2025.

Heading into the second half of 2025, we remain mindful about the ultimate outcome of U.S. tariff policy and its effect on economic growth and consumer sentiment. We understand the concern that prices may rise and earnings could be impacted, but at this point the timing and magnitude are far from certain.

We will be keeping a close eye on this issue and others that could affect market behavior, and we'll adjust as needed. That said, the lesson of the first half is an important one going forward: Overreaction to the news of the day and short-term issues can have an adverse impact on performance. We believe it's more important to focus on long-term results and risk management. That's why, like the markets in the first half of 2025, we will keep moving forward, seeking opportunities to invest in high-quality, fundamentally strong companies at attractive prices.

By order of the Board of Directors,

![[MISSING IMAGE: sg_JPH2023.jpg]](tm2517078d1semianlrpti005.jpg)

James P. Haynie, CFA <br>*Chief Executive Officer* <br>July 17, 2025

------

Portfolio Highlights

June 30, 2025 <br>(unaudited)

#### Ten Largest Equity Portfolio Holdings

---

| | | |
|:---|:---|:---|
| | **Market Value**  | **Percent of <br>Net Assets** |
| Microsoft Corporation | $216074904 | 7.7% |
| NVIDIA Corporation | 209810720 | 7.5 |
| Apple Inc. | 170496270 | 6.1 |
| Amazon.com, Inc. | 114675153 | 4.1 |
| Alphabet Inc. Class A | 95252315 | 3.4 |
| Meta Platforms, Inc. Class A | 92630295 | 3.3 |
| Broadcom Inc. | 73653680 | 2.6 |
| JPMorgan Chase & Co. | 69016844 | 2.5 |
| Adams Natural Resources Fund, Inc.\* | 52488588 | 1.9 |
| Netflix, Inc. | 46631185 | 1.7 |
|  | $1140729954 | 40.8% |

---

\*<br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-controlled affiliated closed-end fund

#### Sector Weightings as a Percent of Net Assets
![[MISSING IMAGE: weighting.jpg]](tm2517078d1semianlrpti006.jpg)

------

Statement of Assets and Liabilities

June 30, 2025 <br>(unaudited)

---

| | | |
|:---|:---|:---|
| **Assets** |  |  |
| Investments at value\*: |  |  |
| &nbsp;&nbsp;&nbsp; Common stocks: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unaffiliated issuers (cost $1,371,645,889)  | $2737131742 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-controlled affiliate (cost $39,943,420) | 52488588 |  |
| &nbsp;&nbsp;&nbsp; Other investment in controlled affiliate <br>(cost $150,000)  | 466000 |  |
| &nbsp;&nbsp;&nbsp; Short-term investments (cost $15,678,107) | 15677797 | $2805764127 |
| Cash |  | 256654 |
| Investment securities sold |  | 16829522 |
| Dividends receivable |  | 1355254 |
| Prepaid expenses and other assets |  | 4194407 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Assets* |  | 2828399964 |
| **Liabilities** |  |  |
| Investment securities purchased |  | 16860621 |
| Due to officers and directors (note 8) |  | 2446916 |
| Accrued expenses and other liabilities |  | 4133150 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Liabilities* |  | 23440687 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Net Assets** |  | $2804959277 |
| **Net Assets** |  |  |
|  Common Stock at par value $0.001 per share, authorized 150,000,000 shares; issued and outstanding 120,125,125 shares (includes 10,933 deferred stock units) (note 7)  |  | $120125 |
| Additional capital surplus |  | 1395773393 |
| Total distributable earnings (loss) |  | 1409065759 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Net Assets Applicable to Common Stock** |  | $2804959277 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Net Asset Value Per Share of Common Stock** |  | $23.35 |

---

\*<br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; See Schedule of Investments beginning on page 16.

*The accompanying notes are an integral part of the financial statements.*

------

Statement of Operations

Six Months Ended June 30, 2025 <br>(unaudited)

---

| | |
|:---|:---|
| **Investment Income** |  |
| &nbsp;&nbsp;&nbsp; Income: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends (includes $2,346,287 from affiliates) | $17371359 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other income  | (65770) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Income* | 17305589 |
| &nbsp;&nbsp;&nbsp; Expenses: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment research compensation and benefits  | 3663620 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Administration and operations compensation and benefits  | 1503803 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Occupancy and other office expenses  | 405930 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment data services  | 416996 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Directors' compensation  | 193250 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Shareholder reports and communications  | 202634 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer agent, custody, and listing fees  | 180777 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounting, recordkeeping, and other professional fees  | 195455 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Insurance  | 144841 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Audit and tax services | 80666 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Legal services  | (244583) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Expenses* | 6743389 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Net Investment Income** | 10562200 |
| **Realized Gain (Loss) and Change in Unrealized Appreciation** |  |
| &nbsp;&nbsp;&nbsp; Net realized gain (loss) on investments | 95265366 |
| &nbsp;&nbsp;&nbsp; Net realized gain distributed by non-controlled affiliate | 140456 |
| &nbsp;&nbsp;&nbsp; Change in unrealized appreciation on investments (includes $(890016) from affiliates) | 93998465 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Net Gain (Loss)**  | **189404287**  |
| **Change in Net Assets from Operations** | $**199966487**  |

---

*The accompanying notes are an integral part of the financial statements.*

------

Statements of Changes in Net Assets

---

| | | |
|:---|:---|:---|
| | **(unaudited)<br>Six Months Ended <br>June 30, 2025**  | **Year Ended <br>December 31, 2024**  |
| **From Operations:** |  |  |
| &nbsp;&nbsp;&nbsp; Net investment income  | $10562200 | $19237126 |
| &nbsp;&nbsp;&nbsp; Net realized gain (loss) | 95405822 | 296517885 |
| &nbsp;&nbsp;&nbsp; Change in unrealized appreciation  | 93998465 | 233811867 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Change in Net Assets from Operations* | 199966487 | 549566878 |
| **Distributions to Shareholders from:** |  |  |
| &nbsp;&nbsp;&nbsp; Total distributable earnings | (109942276) | (282402213) |
| **From Capital Share Transactions:** |  |  |
| &nbsp;&nbsp;&nbsp; Value of shares issued in payment of distributions (note 5)  | 52411514 | 123709797 |
| &nbsp;&nbsp;&nbsp; Cost of shares purchased (note 5) |  | (278744260) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Change in Net Assets from Capital Share Transactions* | 52411514 | (155034463) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total Change in Net Assets**  | **142435725**  | **112130202**  |
| **Net Assets:** |  |  |
| &nbsp;&nbsp;&nbsp; Beginning of period  | 2662523552 | 2550393350 |
| &nbsp;&nbsp;&nbsp; End of period | $2804959277 | $2662523552 |

---

*The accompanying notes are an integral part of the financial statements.*

------

Notes to Financial Statements (unaudited)

Adams Diversified Equity Fund, Inc. (the "Fund") is registered under the Investment Company Act of 1940 ("1940 Act") as a diversified investment company. The Fund is an internally managed closed-end fund whose investment objectives are preservation of capital, the attainment of reasonable income from investments, and an opportunity for capital appreciation.

1. SIGNIFICANT ACCOUNTING POLICIES

**Basis of Presentation** — The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 *Financial Services - Investment Companies.* The accompanying financial statements were prepared in accordance with accounting principles generally accepted in the United States of America (GAAP), which require the use of estimates by Fund management. Management believes that estimates and valuations are appropriate; however, actual results may differ from those estimates and the valuations reflected in the financial statements may differ from the value the Fund ultimately realizes. Additionally, unpredictable events such as natural disasters, war, terrorism, global pandemics, and similar public health threats may significantly affect the economy, markets, and companies in which the Fund invests. The Fund could be negatively impacted if the value of portfolio holdings are harmed by such events.

**Affiliates** — The 1940 Act defines "affiliated companies" as those including companies in which the Fund owns 5% or more of the outstanding voting securities. Additionally, those companies in which the Fund owns more than 25% of the outstanding voting securities are considered to be "controlled" by the Fund. The Fund and its affiliates, Adams Natural Resources Fund, Inc. ("PEO") and Adams Funds Advisers, LLC ("AFA"), have a shared management team.

***PEO*** — The Fund owns 2,456,181 shares of PEO, a non-diversified, closed-end investment company, representing 9.1% of its outstanding shares. The Fund accounts for PEO as a portfolio investment that meets the definition of a non-controlled affiliate. Directors of the Fund are also directors of PEO.

***AFA*** — In April 2015, Fund shareholders authorized the Fund to provide investment advisory services to external parties, and the Securities and Exchange Commission granted no-action relief under section 12(d)(3) of the 1940 Act to allow the Fund to create a separate, wholly-owned entity for this purpose. The Fund provided the initial capital for the start-up costs of AFA, a Maryland limited liability company, and the Fund is the sole member and General Manager, as provided by the Operating Agreement between AFA and the Fund. This structure mitigates the risk of potential liabilities for the Fund associated with any claims that may arise against AFA during the ordinary course of conducting its business. Given that AFA is an operating company that provides no services to the Fund, the Fund accounts for AFA as a portfolio investment that meets the definition of a controlled affiliate.

AFA's profit is dependent on it having assets under management. At June 30, 2025, AFA had no assets under management. Failure to develop new relationships will impact AFA's ability to generate revenue, and accordingly, the Fund's valuation of its investment in AFA. While unlikely, to the extent that AFA's operating costs exceed its assets held, the Fund may be required to provide additional capital to AFA to sustain its operations. For tax purposes, AFA's operating income (or loss) is consolidated with that of the Fund.

------

Notes to Financial Statements (continued)

**Distributions** — Distributions to shareholders are recorded on the ex-dividend date. The Fund employs a Managed Distribution Policy ("MDP") that pays level quarterly distributions at a committed rate of 8% of average net asset value per year. Average net asset value is based on the average of the previous four quarter-end net asset values per share prior to the declaration date. Distributions are generated from portfolio income and capital gains derived from managing the portfolio. If such earnings do not meet the distribution commitment, or it's deemed in the best interest of shareholders, the Fund may return capital. A return of capital is not taxable to shareholders and does not necessarily reflect the Fund's investment performance.

**Expenses** — The Fund and its affiliates share personnel, systems, and other infrastructure items and are charged a portion of the shared expenses. To protect the Fund from potential conflicts of interest, policies and procedures are in place covering the sharing of expenses among the entities. Expenses solely attributable to an entity are charged to that entity. Expenses that are not solely attributable to one entity are allocated in accordance with the Fund's expense sharing policy. The Fund's policy dictates that expenses, other than those related to personnel, are attributed to AFA based on the average estimated amount of time spent by all personnel on AFA-related activities relative to overall job functions; the remaining portion is attributed to the Fund and PEO based on relative net assets excluding affiliated holdings. Personnel-related expenses are attributed to AFA based on the individual's time spent on AFA-related activities; the remaining portion is attributed to the Fund and PEO based on relative market values of portfolio securities covered for research staff and relative net assets excluding affiliated holdings for all others. Expense allocations are updated quarterly. Because AFA has no assets under management, only those expenses directly attributable to AFA are charged to AFA.

For the six months ended June 30, 2025, shared expenses totaled $8,738,240, of which $1,994,305 and $546 were charged to PEO and AFA, respectively, in accordance with the Fund's expense sharing policy. There were no amounts due to, or due from, its affiliates at June 30, 2025.

**Investment Transactions and Income** — The Fund's investment decisions are made by the portfolio management team with recommendations from the research staff. Policies and procedures are in place covering the allocation of investment opportunities among the Fund and its affiliates to protect the Fund from potential conflicts of interest. Investment transactions are accounted for on trade date. Realized gains and losses on sales of investments are recorded on the basis of specific identification. Dividend income is recognized on the ex-dividend date.

**Segment Reporting** — The Fund's primary business is to invest assets to generate returns from investment income and capital appreciation and is operated as a single segment in carrying out its investment objectives. The Fund's management committee, comprised of the Fund's chief executive officer, chief financial officer, and general counsel, serves as the chief operating decision maker in determining key operating decisions that include capital allocation and expense structure for the Fund and executing significant contracts on behalf of the Fund. All significant expense categories are presented on the Statement of Operations and are used for budgeting purposes. The management committee uses change in net assets from operations, as presented on the Statement of Operations, and total investment return based on net asset value and ratio of expenses to average net assets, as presented on the Financial Highlights, to assess fund performance and allocate resources.

------

Notes to Financial Statements (continued)

**Valuation** — The Fund's financial instruments are reported at fair value, which is defined as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Fund has a Valuation Committee ("Committee") so that financial instruments are appropriately priced at fair value in accordance with GAAP and the 1940 Act. Subject to oversight and approval by the Board of Directors, the Committee establishes methodologies and procedures to value securities for which market quotations are not readily available.

GAAP establishes the following hierarchy that categorizes the inputs used to measure fair value:

• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Level 1 — fair value is determined based on market data obtained from independent sources; for example, quoted prices in active markets for identical investments;

• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Level 2 — fair value is determined using other assumptions obtained from independent sources; for example, quoted prices for similar investments;

• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Level 3 — fair value is determined using the Fund's own assumptions, developed based on the best information available under the circumstances.

Investments in securities traded on national exchanges are valued at the last reported sale price as of the close of regular trading on the relevant exchange on the day of valuation. Over-the-counter and listed equity securities for which a sale price is not available are valued at the last quoted bid price. Money market funds are valued at net asset value. These securities are generally categorized as Level 1 in the hierarchy.

Total return swap agreements are valued using independent, observable inputs, including underlying security prices, dividends, and interest rates. These securities are generally categorized as Level 2 in the hierarchy.

The Fund's investment in its controlled affiliate, AFA, is valued by methods deemed reasonable in good faith by the Committee. Because AFA has no client assets under management, the Committee uses AFA's total assets, comprised solely of cash, to approximate fair value. There was no uncertainty surrounding this input at the reporting date. Fair value determinations are reviewed on a regular basis and updated as needed. Given the absence of market quotations or observable inputs, the Fund's investment in AFA is categorized as Level 3 in the hierarchy.

At June 30, 2025, the Fund's financial instruments were classified as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Level 1  | Level 2  | Level 3  | Total  |
| **Assets:** |  |  |  |  |
| Common stocks | $2789620330 | $— | $— | $2789620330 |
| Other investments |  |  | 466000 | 466000 |
| Short-term investments | 15677797 |  |  | 15677797 |
| Total investments | $2805298127 | $— | $466000 | $2805764127 |
| The following is a reconciliation of the change in the value of Level 3 investments: | The following is a reconciliation of the change in the value of Level 3 investments: | The following is a reconciliation of the change in the value of Level 3 investments: | The following is a reconciliation of the change in the value of Level 3 investments: | The following is a reconciliation of the change in the value of Level 3 investments: |
| Balance at December 31, 2024 | Balance at December 31, 2024 | Balance at December 31, 2024 |  | $466000 |
| Purchases | Purchases | Purchases |  |  |
|  Change in unrealized appreciation on investments in the Statement of Operations | Change in unrealized appreciation on investments in the Statement of Operations | Change in unrealized appreciation on investments in the Statement of Operations |  |  |
| Balance at June 30, 2025 | Balance at June 30, 2025 | Balance at June 30, 2025 |  | $466000 |

---

------

Notes to Financial Statements (continued)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

2. FEDERAL INCOME TAXES

No federal income tax provision is required since the Fund's policy is to qualify as a regulated investment company under the Internal Revenue Code and to distribute substantially all of its taxable income and gains to its shareholders. Additionally, management has analyzed the tax positions included in federal income tax returns from the previous three years that remain subject to examination, and concluded no provision was required. Any income tax-related interest or penalties would be recognized as income tax expense. At June 30, 2025, the identified cost of securities for federal income tax purposes was $1,427,737,696 and net unrealized appreciation aggregated $1,378,026,431, consisting of gross unrealized appreciation of $1,401,983,341 and gross unrealized depreciation of $23,956,910.

Distributions are determined in accordance with the Fund's MDP and income tax regulations, which may differ from GAAP. Such differences are primarily related to the Fund's retirement plan, equity-based compensation, wash sales, tax straddles for total return swaps, and investment in AFA. Differences that are permanent are reclassified in the capital accounts of the Fund's annual financial statements and have no impact on net assets.

3. INVESTMENT TRANSACTIONS

Purchases and sales of portfolio investments, other than short-term investments, securities lending collateral, and derivative transactions, during the six months ended June 30, 2025 were $777,163,546 and $822,024,833, respectively.

4. DERIVATIVES

The Fund may invest in derivative instruments. The Fund uses derivatives for a variety of purposes, including, but not limited to, the ability to gain or limit exposure to particular market sectors or securities, to provide additional capital gains, to limit equity price risk in the normal course of pursuing its investment objectives, and/or to obtain leverage.

**Total Return Swap Agreements** — The Fund utilizes total return swap agreements in carrying out a paired trade strategy, where it enters into a long contract for a single stock and a short contract for a sector exchange-traded fund in comparable notional amounts. Total return swap agreements involve commitments based on a notional amount to pay interest in exchange for a market-linked return of a reference security. Upon closing a long contract, the Fund will receive a payment to the extent the total return of the reference security is positive for the contract period and exceeds the offsetting interest rate obligation or will make a payment if the total return is negative for the contract period. Upon closing a short contract, the Fund will receive a payment to the extent the total return of the reference security is negative for the contract period and exceeds the offsetting interest rate obligation or will make a payment if the total return is positive for the contract period. The fair value of each total return swap agreement is determined daily and the change in value is recorded as a change in unrealized appreciation on total return swap agreements in the Statement of Operations. Payments received or made upon termination during the period are recorded as a realized gain or loss on total return swap agreements in the Statement of Operations.

Total return swap agreements entail risks associated with counterparty credit, liquidity, and equity price risk. Such risks include that the Fund or the counterparty may default on its obligation, that there is no liquid market for these agreements, and that there may be unfavorable changes in the price of the reference security. To mitigate the Fund's

------

Notes to Financial Statements (continued)

counterparty credit risk, the Fund enters into master netting and collateral arrangements with the counterparty. A master netting agreement allows either party to terminate the agreement prior to termination date and provides the ability to offset amounts the Fund owes the counterparty against the amounts the counterparty owes the Fund for a single net settlement. The Fund's policy is to net all derivative instruments subject to a netting agreement and offset the value of derivative liabilities against the value of derivative assets. The net cumulative unrealized gain (asset) on open total return swap agreements or the net cumulative unrealized loss (liability) on open total return swap agreements is presented in the Statement of Assets and Liabilities. At June 30, 2025, there were no open total return swap agreements. During the six months ended June 30, 2025, the Fund did not invest in total return swap agreements.

A collateral arrangement requires each party to provide collateral with a value, adjusted daily and subject to a minimum transfer amount, equal to the net amount owed to the other party under the agreement. The counterparty provides cash collateral to the Fund and the Fund provides collateral by segregating portfolio securities, subject to a valuation allowance, into a tri-party account at its custodian. At June 30, 2025, there were no securities pledged as collateral and no cash collateral was held by the Fund.

5. CAPITAL STOCK

The Fund has 10,000,000 authorized and unissued preferred shares, $0.001 par value.

The Fund pays distributions four times a year under the MDP in newly issued shares of its Common Stock, unless a shareholder elects to receive cash. Shares are issued at the lower of the net asset value per share or the closing market price on the date of valuation. Prior to the adoption of the MDP, the Fund issued shares in payment of the fourth quarter distribution, by shareholder election, at the average market price on the date of valuation. Additionally, the Fund issues shares as dividend equivalents to holders of deferred stock units under the 2005 Equity Incentive Compensation Plan

The Fund may purchase shares of its Common Stock from time to time, in accordance with parameters set by the Board of Directors, at such prices and amounts as the portfolio management team deems appropriate. Additionally, the Fund will repurchase shares under the Fund's enhanced discount management and liquidity program, subject to certain restrictions, when the discount exceeds 15% of net asset value for at least 30 consecutive trading days. The enhanced program also provides that the Fund will engage in a proportional tender offer to repurchase shares when the discount exceeds 19% of net asset value for 30 consecutive trading days, not to exceed one such offer in any twelve-month period.

------

Notes to Financial Statements (continued)

Transactions in its Common Stock for 2025 and 2024 were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Shares  | Shares  | Amount  | Amount  |
| | Six months<br>ended<br>June 30, <br>2025  | Year ended<br>December 31, <br>2024  | Six months<br>ended<br>June 30, <br>2025  | Year ended<br>December 31, <br>2024  |
|  Shares issued in payment of distributions (at a weighted average discount from net asset value of 4.4% and 8.0%, respectively) | 2539149 | 5939511 | $52411514 | $123709797 |
|  Shares purchased in tender <br>offer (at a weighted average <br>discount from net asset value <br>of 2.0% in 2024) |  | (12405174) |  | (278744260) |
| Net change | 2539149 | (6465663) | $52411514 | $(155034463) |

---

6. RETIREMENT PLANS

The Fund sponsors a qualified defined contribution plan for all employees with at least six months of service and a nonqualified defined contribution plan for eligible employees to supplement the qualified plan. The Fund matches employee contributions made to the plans and, subject to Board approval, may also make a discretionary contribution to the plans. During the six months ended June 30, 2025, the Fund recorded matching contributions of $344,747 and a liability, representing the 2025 discretionary contribution, of $158,104.

7. EQUITY-BASED COMPENSATION

The Fund's 2005 Equity Incentive Compensation Plan, adopted at the 2005 Annual Meeting and reapproved at the 2010 Annual Meeting, expired on April 27, 2015. Restricted stock units granted to nonemployee directors that are 100% vested, but payment of which has been deferred at the election of the director, remain outstanding at June 30, 2025.

Outstanding awards were granted at fair market value on grant date (determined by the average of the high and low price on that date) and earn an amount equal to the Fund's per share distribution, payable in reinvested shares, which are paid concurrently with the payment of the original share grant. A summary of the activity during the six months ended June 30, 2025 is as follows:

---

| | | |
|:---|:---|:---|
| Awards  | Units  | Weighted Average<br>Grant-Date <br>Fair Value  |
| Balance at December 31, 2024 | 13480 | $14.38 |
| Reinvested dividend equivalents | 443 | 20.64 |
| Issued | (2990) | 16.45 |
| Balance at June 30, 2025 | 10933 | $14.06 |

---

At June 30, 2025, the Fund had no unrecognized compensation cost. The total fair value of awards issued during the six months ended June 30, 2025 was $64,831.

8. OFFICER AND DIRECTOR COMPENSATION

The aggregate remuneration paid by the Fund during the six months ended June 30, 2025 to officers and directors amounted to $5,435,782, of which $258,081 was paid to

------

Notes to Financial Statements (continued)

non-employee directors. These amounts represent the taxable income, including $64,831 in deferred director compensation from previous years, to the Fund's officers and directors and, therefore, may differ from the amounts reported in the accompanying Statement of Operations that are recorded and expensed in accordance with GAAP. At June 30, 2025, $2,446,916 was due to officers and directors, representing amounts related to estimated cash compensation and estimated retirement plan discretionary contributions payable to officers and reinvested dividend payments on deferred stock awards payable to directors.

9. PORTFOLIO SECURITIES LOANED

The Fund makes loans of securities to approved brokers to earn additional income. The loans are collateralized by cash and/or U.S. Treasury and government agency obligations valued at 102% of the value of the securities on loan. The market value of the loaned securities is calculated based upon the most recent closing prices and any additional required collateral is delivered to the Fund on the next business day. On loans collateralized by cash, the cash collateral is invested in a registered money market fund. The Fund accounts for securities lending transactions as secured financing and retains a portion of the income from lending fees and interest on the investment of cash collateral. The Fund also continues to receive dividends on the securities loaned. Gain or loss in the fair value of securities loaned that may occur during the term of the loan will be for the account of the Fund. At June 30, 2025, the Fund had no securities on loan. The Fund is indemnified by the custodian, serving as lending agent, for the loss of loaned securities and has the right under the lending agreement to recover the securities from the borrower on demand.

10. LEASES

The Fund and its affiliates jointly lease office space and equipment under non-cancelable lease agreements expiring at various dates through 2029. Payments are made in aggregate pursuant to these agreements but are deemed variable for each entity, as the allocable portion to each entity fluctuates when applying the expense sharing policy among all affiliates at each payment date. Variable payments of this nature do not require recognition of an asset or an offsetting liability in the Statement of Assets and Liabilities and are recognized as rental expense on a straight-line basis over the lease term within occupancy and other office expenses in the Statement of Operations. During the six months ended June 30, 2025, the Fund recognized rental expense of $177,619.

11. COMMITMENTS AND CONTINGENCIES

In the normal course of business, the Fund enters into agreements that can expose the Fund to some risk of loss. The risk of future loss arising from any such agreements, while not quantifiable, is expected to be remote. As such, and as of the end of the reporting period, the Fund did not have any unfunded commitments. From time to time, the Fund may be a party to certain legal proceedings in the ordinary course of business, including proceedings relating to the enforcement of the Fund's rights under contracts or within bylaws. As of the end of the reporting period, management has determined that any legal proceedings the Fund is subject to are unlikely to have a material impact to the Fund's financial statements.

------

Financial Highlights

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **(unaudited) <br>Six Months Ended**  | **(unaudited) <br>Six Months Ended**  | | | | | |
| | **June 30, <br>2025**  | **June 30, <br>2024**  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
| | **June 30, <br>2025**  | **June 30, <br>2024**  | **2024** | **2023** | **2022** | **2021** | **2020** |
|  **Per Share Operating Performance**  |  |  |  |  |  |  |  |
|  Net asset value, beginning of period  | $22.64 | $20.56 | $20.56 | $17.38 | $22.50 | $20.06 | $17.93 |
| &nbsp;&nbsp;&nbsp; Net investment income  | 0.09 | 0.06 | 0.16 | 0.17 | 0.19 | 0.17 | 0.20 |
| &nbsp;&nbsp;&nbsp; Net realized gain (loss) and <br>change in unrealized <br>appreciation  | 1.57 | 3.17 | 4.46 | 4.40 | (4.18) | 5.42 | 3.01 |
| Total from operations | 1.66 | 3.23 | 4.62 | 4.57 | (3.99) | 5.59 | 3.21 |
| Less distributions from: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Net investment income  |  | (0.09) | (0.17) | (0.15) | (0.18) | (0.20) | (0.19) |
| &nbsp;&nbsp;&nbsp; Net realized gain |  | (0.01) | (2.33) | (1.15) | (0.89) | (2.78) | (0.84) |
| Total distributions | (0.93) (a) | (0.10) | (2.50) | (1.30) | (1.07) | (2.98) | (1.03) |
| &nbsp;&nbsp;&nbsp; Capital share repurchases (note 5)  |  |  | 0.05 |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Reinvestment of distributions (note 5) | (0.02) |  | (0.09) | (0.09) | (0.06) | (0.17) | (0.05) |
| Total capital share transactions  | (0.02) |  | (0.04) | (0.09) | (0.06) | (0.17) | (0.05) |
|  **Net asset value, end of period** | $23.35 | $23.69 | $22.64 | $20.56 | $17.38 | $22.50 | $20.06 |
| Market price, end of period | $21.71 | $21.49 | $20.20 | $17.71 | $14.54 | $19.41 | $17.29 |
| **Total Investment Return (b)** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Based on market price  | 12.4% | 22.0% | 28.1% | 31.2% | -19.8% | 29.9% | 16.4% |
| &nbsp;&nbsp;&nbsp; Based on net asset value  | 7.8% | 15.8% | 23.6% | 27.5% | -17.3% | 29.8% | 18.8% |
| **Ratios/Supplemental Data (c)**  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Net assets, end of period (in millions)  | $2805 | $2938 | $2663 | $2550 | $2101 | $2653 | $2227 |
| &nbsp;&nbsp;&nbsp; Ratio of expenses to average net assets  | 0.52% | 0.59% | 0.56% | 0.61% | 0.54% | 0.56% | 0.60% |
| &nbsp;&nbsp;&nbsp; Ratio of net investment income to average net assets  | 0.80% | 0.58% | 0.70% | 0.90% | 0.98% | 0.77% | 1.12% |
| &nbsp;&nbsp;&nbsp; Portfolio turnover  | 59.0% | 68.4% | 61.4% | 63.6% | 67.7% | 64.4% | 58.7% |
| &nbsp;&nbsp;&nbsp; Number of shares outstanding at end of period (in 000's)  | 120125 | 124052 | 117586 | 124052 | 120900 | 117872 | 111027 |

---

(a)<br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The character of distributions will be determined based on the Fund's investment performance for the full calendar year and will be determined at the end of the year.

(b)<br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total investment return is calculated assuming a purchase of a Fund share at the beginning of the period and a sale on the last day of the period reported either at net asset value or market price per share, excluding any brokerage commissions. Distributions are assumed to be reinvested at the lower of the net asset value per share or the closing NYSE market price on the distribution's valuation date.

(c)<br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ratios and portfolio turnover presented on an annualized basis.

*The accompanying notes are an integral part of the financial statements.*

------

Schedule of Investments

June 30, 2025 <br>(unaudited)

---

| | | |
|:---|:---|:---|
| | **Shares** | **Value (a)** |
| **Common Stocks — 99.5%** | **Common Stocks — 99.5%** | **Common Stocks — 99.5%** |
| &nbsp;&nbsp;&nbsp; **Communication Services — 9.8%** | &nbsp;&nbsp;&nbsp; **Communication Services — 9.8%** | &nbsp;&nbsp;&nbsp; **Communication Services — 9.8%** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Alphabet Inc. Class A | 540500 | $95252315 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Meta Platforms, Inc. Class A | 125500 | 92630295 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Netflix, Inc. (b) | 34822 | 46631185 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Spotify Technology SA (b) | 9100 | 6982794 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TKO Group Holdings, Inc. Class A | 54300 | 9879885 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; T-Mobile US, Inc. | 96900 | 23087394 |
|  |  | 274463868 |
| &nbsp;&nbsp;&nbsp; **Consumer Discretionary — 10.7%** | &nbsp;&nbsp;&nbsp; **Consumer Discretionary — 10.7%** | &nbsp;&nbsp;&nbsp; **Consumer Discretionary — 10.7%** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amazon.com, Inc. (b) | 522700 | 114675153 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Booking Holdings Inc. | 5600 | 32419744 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Consumer Discretionary Select Sector SPDR Fund | 31700 | 6889361 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Domino's Pizza, Inc. | 25900 | 11670540 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Home Depot, Inc. | 37900 | 13895656 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; McDonald's Corporation | 65500 | 19137135 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; O'Reilly Automotive, Inc. (b) | 247500 | 22307175 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Skechers U.S.A., Inc. Class A (b) | 181100 | 11427410 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tesla, Inc. (b) | 121800 | 38690988 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Uber Technologies, Inc. (b) | 309300 | 28857690 |
|  |  | 299970852 |
| &nbsp;&nbsp;&nbsp; **Consumer Staples — 5.8%** | &nbsp;&nbsp;&nbsp; **Consumer Staples — 5.8%** | &nbsp;&nbsp;&nbsp; **Consumer Staples — 5.8%** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Coca-Cola Company | 144000 | 10188000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Colgate-Palmolive Company | 89200 | 8108280 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Costco Wholesale Corporation | 13700 | 13562178 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Kenvue, Inc. | 752500 | 15749825 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PepsiCo, Inc. | 47800 | 6311512 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Philip Morris International Inc. | 188335 | 34301454 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Post Holdings, Inc. (b) | 116400 | 12691092 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Procter & Gamble Company | 70249 | 11192071 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sysco Corporation | 196700 | 14898058 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Walmart Inc. | 353243 | 34540100 |
|  |  | 161542570 |
| &nbsp;&nbsp;&nbsp; **Energy — 3.2%** | &nbsp;&nbsp;&nbsp; **Energy — 3.2%** | &nbsp;&nbsp;&nbsp; **Energy — 3.2%** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adams Natural Resources Fund, Inc. (c)(f) | 2456181 | 52488588 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Baker Hughes Company | 309400 | 11862396 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Chevron Corporation | 133500 | 19115865 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Hess Corporation | 49100 | 6802314 |
|  |  | 90269163 |

---

------

Schedule of Investments (continued)

June 30, 2025 <br>(unaudited)

---

| | | |
|:---|:---|:---|
| | **Shares** | **Value (a)** |
| &nbsp;&nbsp;&nbsp; **Financials — 13.8%** | &nbsp;&nbsp;&nbsp; **Financials — 13.8%** | &nbsp;&nbsp;&nbsp; **Financials — 13.8%** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; American International Group, Inc. | 209500 | $17931105 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Apollo Global Management, Inc. | 92300 | 13094601 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Bank of America Corp. | 930868 | 44048674 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Berkshire Hathaway Inc. Class B (b) | 95443 | 46363346 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capital One Financial Corporation | 157670 | 33545869 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; CME Group Inc. Class A  | 87100 | 24006502 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fiserv, Inc. (b) | 66300 | 11430783 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Goldman Sachs Group, Inc. | 49800 | 35245950 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; JPMorgan Chase & Co. | 238063 | 69016844 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Mastercard Incorporated Class A | 55162 | 30997734 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Progressive Corporation (b) | 75600 | 20174616 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Visa Inc. Class A | 116861 | 41491498 |
|  |  | 387347522 |
| &nbsp;&nbsp;&nbsp; **Health Care — 9.2%** | &nbsp;&nbsp;&nbsp; **Health Care — 9.2%** | &nbsp;&nbsp;&nbsp; **Health Care — 9.2%** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; AbbVie, Inc. | 187700 | 34840874 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Boston Scientific Corporation (b) | 213700 | 22953517 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cencora, Inc. | 77100 | 23118435 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cigna Group | 40200 | 13289316 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Eli Lilly and Company | 41968 | 32715315 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Health Care Select Sector SPDR Fund | 134000 | 18061860 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Insulet Corporation (b) | 40700 | 12787126 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Johnson & Johnson | 102800 | 15702700 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Medtronic plc | 192900 | 16815093 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Quest Diagnostics Incorporated | 52100 | 9358723 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Regeneron Pharmaceuticals, Inc. | 19700 | 10342500 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Thermo Fisher Scientific Inc. | 40300 | 16340038 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; UnitedHealth Group Incorporated | 50800 | 15848076 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Vertex Pharmaceuticals Incorporated (b) | 35100 | 15626520 |
|  |  | 257800093 |
| &nbsp;&nbsp;&nbsp; **Industrials — 8.1%** | &nbsp;&nbsp;&nbsp; **Industrials — 8.1%** | &nbsp;&nbsp;&nbsp; **Industrials — 8.1%** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3M Company | 138000 | 21009120 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Boeing Company (b) | 120600 | 25269318 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Carrier Global Corporation | 277200 | 20288268 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deere & Company | 46000 | 23390540 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; GE Aerospace | 160700 | 41362573 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; GE Vernova Inc. | 45200 | 23917580 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Parker-Hannifin Corporation | 22700 | 15855269 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Paycom Software, Inc. | 41500 | 9603100 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Republic Services, Inc. | 68500 | 16892785 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; RTX Corporation | 103500 | 15113070 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Trane Technologies plc | 31600 | 13822156 |
|  |  | 226523779 |

---

------

Schedule of Investments (continued)

June 30, 2025 <br>(unaudited)

---

| | | |
|:---|:---|:---|
| | **Shares** | **Value (a)** |
| &nbsp;&nbsp;&nbsp; **Information Technology — 32.7%** | &nbsp;&nbsp;&nbsp; **Information Technology — 32.7%** | &nbsp;&nbsp;&nbsp; **Information Technology — 32.7%** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accenture plc Class A | 24619 | $7358373 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Advanced Micro Devices, Inc. (b) | 128000 | 18163200 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Analog Devices, Inc. | 79000 | 18803580 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Apple Inc. | 831000 | 170496270 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Arista Networks, Inc. (b) | 213664 | 21859964 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Atlassian Corporation Class A (b) | 62500 | 12693125 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Autodesk, Inc. (b) | 40700 | 12599499 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Broadcom Inc. | 267200 | 73653680 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cisco Systems, Inc. | 374800 | 26003624 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; International Business Machines Corporation | 129700 | 38232966 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lam Research Corporation | 283900 | 27634826 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Microsoft Corporation | 434400 | 216074904 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; NVIDIA Corporation | 1328000 | 209810720 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Oracle Corporation | 48800 | 10669144 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Palantir Technologies Inc. Class A (b) | 39300 | 5357376 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Palo Alto Networks, Inc. (b) | 107800 | 22060192 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Salesforce, Inc. | 94000 | 25632860 |
|  |  | 917104303 |
| &nbsp;&nbsp;&nbsp; **Materials — 1.7%** | &nbsp;&nbsp;&nbsp; **Materials — 1.7%** | &nbsp;&nbsp;&nbsp; **Materials — 1.7%** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Crown Holdings, Inc. | 104700 | 10782006 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ecolab Inc. | 57400 | 15465856 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Freeport-McMoRan, Inc. | 187200 | 8115120 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sherwin-Williams Company | 42300 | 14524128 |
|  |  | 48887110 |
| &nbsp;&nbsp;&nbsp; **Real Estate — 2.1%** | &nbsp;&nbsp;&nbsp; **Real Estate — 2.1%** | &nbsp;&nbsp;&nbsp; **Real Estate — 2.1%** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; American Tower Corporation | 91200 | 20157024 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; AvalonBay Communities, Inc. | 57600 | 11721600 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; CBRE Group, Inc. Class A (b) | 98200 | 13759784 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; VICI Properties Inc. | 421600 | 13744160 |
|  |  | 59382568 |
| &nbsp;&nbsp;&nbsp; **Utilities — 2.4%** | &nbsp;&nbsp;&nbsp; **Utilities — 2.4%** | &nbsp;&nbsp;&nbsp; **Utilities — 2.4%** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Constellation Energy Corporation | 29300 | 9456868 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Duke Energy Corporation | 150000 | 17700000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Entergy Corporation | 219500 | 18244840 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Eversource Energy | 215000 | 13678300 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Vistra Corp. | 37400 | 7248494 |
|  |  | 66328502 |
| **Total Common Stocks** | **Total Common Stocks** | **Total Common Stocks** |
| &nbsp;&nbsp;&nbsp; (Cost $1,411,589,309) |  | 2789620330 |

---

------

Schedule of Investments (continued)

June 30, 2025 <br>(unaudited)

---

| | | |
|:---|:---|:---|
| | **Shares** | **Value (a)** |
| **Other Investments — 0.0%** | **Other Investments — 0.0%** | **Other Investments — 0.0%** |
| &nbsp;&nbsp;&nbsp; **Financials — 0.0%** | &nbsp;&nbsp;&nbsp; **Financials — 0.0%** | &nbsp;&nbsp;&nbsp; **Financials — 0.0%** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adams Funds Advisers, LLC (b)(d)(f) |  |  |
| &nbsp;&nbsp;&nbsp; (Cost $150,000) |  | $466000 |
| **Short-Term Investments — 0.5%** | **Short-Term Investments — 0.5%** | **Short-Term Investments — 0.5%** |
| &nbsp;&nbsp;&nbsp; **Money Market Funds — 0.5%** | &nbsp;&nbsp;&nbsp; **Money Market Funds — 0.5%** | &nbsp;&nbsp;&nbsp; **Money Market Funds — 0.5%** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Morgan Stanley Institutional Liquidity Funds Prime Portfolio, Institutional Class, 4.34% (e) | 14496960 | 14498409 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Northern Institutional Funds Treasury Portfolio, Premier Class, 4.16% (e) | 1179388 | 1179388 |
| **Total Short-Term Investments** | **Total Short-Term Investments** | **Total Short-Term Investments** |
| &nbsp;&nbsp;&nbsp; (Cost $15,678,107) |  | 15677797 |
| **Total — 100.0%** | **Total — 100.0%** | **Total — 100.0%** |
| &nbsp;&nbsp;&nbsp; (Cost $1,427,417,416) |  | 2805764127 |
| Other Assets Less Liabilities — 0.0% |  | (804850) |
| **Net Assets — 100.0%** |  | $**2804959277**  |

---

(a)<br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 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. See note 1 to financial statements.

(b)<br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Presently non-dividend paying.

(c)<br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-controlled affiliate, a closed-end sector fund, registered as an investment company under the Investment Company Act of 1940.

(d)<br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Controlled affiliate valued using fair value procedures.

(e)<br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Rate presented is as of period-end and represents the annualized yield earned over the previous seven days.

(f)<br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; During the six months ended June 30, 2025, investments in affiliates were as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Affiliate**  | **Shares <br>held** | **Net realized <br>gain (loss) <br>and <br>capital gain <br>distributions** | **Dividend <br>income**  | **Change in <br>unrealized <br>appreciation** | **Value** |
| Adams Funds Advisers, LLC (controlled) | n/a | $— | $— | $— | $466000 |
| Adams Natural Resources Funds, Inc. <br>(non-controlled)\* | 2456181 | 140456 | 2346287 | (890016) | 52488588 |
| Total |  | $140456 | $2346287 | $(890016) | $52954588 |

---

\*<br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Fund elected to receive 115,248 shares (cost basis $2,486,721) in lieu of cash for distributions received in 2025. Cost basis at end of period was $39,943,420.

*The accompanying notes are an integral part of the financial statements.*

------

Principal Changes in Portfolio Securities

During the Six Months Ended June 30, 2025 <br>(unaudited)

---

| | | |
|:---|:---|:---|
| | **Dollar Amount Traded <br>in the Period** | **Percent of Net Assets <br>Held at Period-End** |
| **Additions** |  |  |
| &nbsp;&nbsp;&nbsp; GE Aerospace  | $32376942 | 1.5% |
| &nbsp;&nbsp;&nbsp; Boeing Company | 23982576 | 0.9 |
| &nbsp;&nbsp;&nbsp; CME Group Inc. Class A | 21773421 | 0.9 |
| &nbsp;&nbsp;&nbsp; Deere & Company  | 21607778 | 0.8 |
| &nbsp;&nbsp;&nbsp; Progressive Corporation  | 20254986 | 0.7 |
| &nbsp;&nbsp;&nbsp; 3M Company | 20213923 | 0.7 |
| &nbsp;&nbsp;&nbsp; Republic Services, Inc. | 17473110 | 0.6 |
| &nbsp;&nbsp;&nbsp; Duke Energy Corporation | 17402430 | 0.6 |
| &nbsp;&nbsp;&nbsp; Advanced Micro Devices, Inc. | 16581581 | 0.6 |
| &nbsp;&nbsp;&nbsp; Kenvue, Inc. | 15726723 | 0.6 |
| &nbsp;&nbsp;&nbsp; Palo Alto Networks, Inc. | 15,504,953\* | 0.8 |
| &nbsp;&nbsp;&nbsp; Mastercard Incorporated Class A | 15,331,663\* | 1.1 |
| &nbsp;&nbsp;&nbsp; Sherwin-Williams Company | 15288748 | 0.5 |
| &nbsp;&nbsp;&nbsp; GE Vernova Inc. | 15204753 | 0.9 |
| &nbsp;&nbsp;&nbsp; Ecolab Inc. | 14483753 | 0.6 |
| **Reductions** |  |  |
| &nbsp;&nbsp;&nbsp; Automatic Data Processing, Inc. | 28604796 |  |
| &nbsp;&nbsp;&nbsp; Allstate Corporation | 24367470 |  |
| &nbsp;&nbsp;&nbsp; Morgan Stanley | 23944824 |  |
| &nbsp;&nbsp;&nbsp; S&P Global, Inc. | 23938281 |  |
| &nbsp;&nbsp;&nbsp; Linde plc  | 23901222 |  |
| &nbsp;&nbsp;&nbsp; PNC Financial Services Group, Inc. | 22607670 |  |
| &nbsp;&nbsp;&nbsp; Accenture plc Class A | 21829031 | 0.3 |
| &nbsp;&nbsp;&nbsp; Zoetis, Inc. Class A | 19663569 |  |
| &nbsp;&nbsp;&nbsp; NextEra Energy, Inc. | 18992790 |  |
| &nbsp;&nbsp;&nbsp; Union Pacific Corporation | 18693632 |  |
| &nbsp;&nbsp;&nbsp; Hubbell Incorporated  | 18503573 |  |
| &nbsp;&nbsp;&nbsp; PayPal Holdings, Inc.  | 18369969 |  |
| &nbsp;&nbsp;&nbsp; RTX Corporation | 17867265 | 0.5 |
| &nbsp;&nbsp;&nbsp; HCA Healthcare, Inc.  | 17187808 |  |
| &nbsp;&nbsp;&nbsp; Micron Technology, Inc. | 17027716 |  |
| &nbsp;&nbsp;&nbsp; WEC Energy Group, Inc. | 16675472 |  |
| &nbsp;&nbsp;&nbsp; L3Harris Technologies, Inc. | 16405150 |  |
| &nbsp;&nbsp;&nbsp; Verizon Communications Inc.  | 15044795 |  |

---

\*<br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Addition to an existing position

The transactions presented above are those that exceeded .50% of period-end net assets, representing new positions, fully-eliminated positions, and the largest net additions and reductions to existing portfolio securities, as noted, and exclude those in sector exchange-traded funds.

------

Historical Financial Statistics

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(unaudited)

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Year**  | **(000's) <br> Value Of <br> Net Assets**  | **(000's) <br> Shares <br> Outstanding**  | **Net Asset <br> Value <br> Per Share**  | **Market <br> Value <br> Per Share**  | **Income <br> Dividends <br> Per Share**  | **Capital <br> Gains Distributions <br>Per Share** | **Return of <br> Capital <br> Distributions <br> Per Share**  | **Total <br> Dividends <br> and <br> Distributions <br> Per Share** | **Annual <br> Distribution <br>Rate\*** |
| 2015 | $1472144 | 97914 | $15.04 | $12.83 | $.14 | $.79 | $— | $.93 | 6.8% |
| 2016 | 1513498 | 99437 | 15.22 | 12.71 | .18 | .81 |  | .99 | 7.8 |
| 2017 | 1785772 | 101736 | 17.55 | 15.03 | .22 | 1.16 |  | 1.38 | 9.8 |
| 2018 | 1580889 | 106206 | 14.89 | 12.62 | .21 | 1.79 |  | 2.00 | 12.9 |
| 2019 | 1951592 | 108865 | 17.93 | 15.77 | .22 | 1.20 |  | 1.42 | 9.6 |
| 2020 | 2227273 | 111027 | 20.06 | 17.29 | .19 | .84 |  | 1.03 | 6.8 |
| 2021 | 2652528 | 117872 | 22.50 | 19.41 | .20 | 2.78 |  | 2.98 | 15.7 |
| 2022 | 2100738 | 120900 | 17.38 | 14.54 | .18 | .89 |  | 1.07 | 6.3 |
| 2023 | 2550393 | 124052 | 20.56 | 17.71 | .15 | 1.15 |  | 1.30 | 8.1 |
| 2024 | 2662524 | 117586 | 22.64 | 20.20 | .17 | 2.33 |  | 2.50 | 10.9 |
| June 30, 2025  | 2804959 | 120125 | 23.35 | 21.71 |  |  |  | .93\*\* |  |

---

\*<br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; For 2024, the annual distribution rate is calculated as the total dividends and distributions per share for the year divided by the average of the Fund's net asset value per share for the four quarter-end periods ending September 30, in accordance with the Managed Distribution Policy adopted in May 2024. Prior to that, the calculation was based on the Fund's average month-end stock price for the twelve months ended October 31, in accordance with the annual 6% minimum distribution rate commitment then in effect.

\*\*<br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The character of distributions will be determined based on the Fund's investment performance for the full calendar year and will be determined at the end of the year.

#### A nnual M eeting of S tockholders
(unaudited)

The Annual Meeting of Stockholders was held on April 17, 2025. On the proposal to elect two Class I directors to serve until the annual meeting of stockholders in 2028 and until their successors are duly elected and qualify, the following votes were cast:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Votes For**  | **Votes For**  | **Votes Withheld**  | **Votes Withheld**  |
| James P. Haynie |  | 65378167 |  | 22861708 |
| Lauriann C. Kloppenburg |  | 64404235 |  | 23835640 |

---

A proposal to ratify the selection of PricewaterhouseCoopers LLP as the independent registered public accounting firm for the Fund for 2025 was approved with 84,985,130 votes for, 1,412,232 votes against, and 1,842,513 shares abstaining.

------

Other Information

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

(unaudited)

#### Electronic Delivery of Shareholder Reports
The Fund offers shareholders the benefits and convenience of viewing Quarterly and Annual Reports and other shareholder materials online. With your consent, paper copies of these documents will cease with the next mailing and will be provided via e-mail. Reduce paper mailed to your home and help lower the Fund's printing and mailing costs. To enroll, registered shareholders with the Fund's transfer agent, Computershare, should call 877-260-8188, or log in to their account to update e-delivery preferences.

Shareholders using brokerage accounts should contact their broker.

#### Proxy Voting Policies and Record
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities owned by the Fund and the Fund's proxy voting record for the 12-month period ended June 30, 2025 are available (i) without charge, upon request, by calling the Fund's toll free number at (800) 638-2479; (ii) on the Fund's website: *www.adamsfunds.com*; and (iii) on the Securities and Exchange Commission's website: *www.sec.gov*.

#### Statement on Quarterly Filing of Complete Portfolio Schedule
In addition to publishing its complete schedule of portfolio holdings in the First and Third Quarter Reports to Shareholders, the Fund also files its complete schedule of portfolio holdings for the first and third quarters of each fiscal year with the Securities and Exchange Commission on Form N-PORT. The form is available on the Commission's website: *www.sec.gov.* The Fund also posts a link to its filings on its website: *www.adamsfunds.com.*

#### 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.

------

#### A dams D iversified E quity F und , I nc .

#### Board of Directors
Kenneth J. Dale<sup>(1) (5)</sup> Mary Chris Jammet<sup>(1) (2) (3) (4)</sup> <br> Frederic A. Escherich<sup>(2) (3) (4)</sup> Lauriann C. Kloppenburg<sup>(1) (2) (3) (4)</sup> <br> James P. Haynie<sup>(1)</sup> Jane Musser Nelson<sup>(1) (2) (3) (4)</sup>

(1)<br>

*Member of Executive Committee*

(2)<br>

*Member of Audit Committee*

(3)<br>

*Member of Compensation Committee*

(4)<br>

*Member of Nominating and Governance Committee*

(5)<br>

*Chair of the Board*

#### Officers

---

| | |
|:---|:---|
| *James P. Haynie, CFA*  | *Chief Executive Officer* |
| D. Cotton Swindell, CFA | *President* |
| *Brian S. Hook, CFA, CPA*  | *Vice President and Chief Financial Officer* |
| *Janis F. Kerns*  | *Vice President, General Counsel, Secretary, and Chief Compliance Officer*  |
| Gregory W. Buckley | *Vice President—Research* |
| Xuying Chang, CFA | *Vice President—Research* |
| Michael A. Kijesky, CFA | *Vice President—Research* |
| Michael E. Rega, CFA | *Vice President—Research* |
| William H. Reinhardt, CFA | *Vice President—Research* |
| David R. Schiminger, CFA | *Vice President—Research* |
| Jeffrey R. Schollaert, CFA | *Vice President—Research* |
| *Christine M. Sloan, CPA*  | *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
***Tickers:*** ADX (NYSE), XADEX (NASDAQ)

#### Independent Registered Public Accounting Firm: PricewaterhouseCoopers LLP

#### Custodian of Securities: The Northern Trust Company
***Transfer Agent & Registrar:*** Computershare Trust Company, N.A.

P.O. Box 43078 <br>Providence, RI 02940-3078<br>(877) 260-8188<br>*Website:* www.computershare.com/us <br>*Email:* info@computershare.com

------

**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. Financial Statements and Financial Highlights for Open-End Management Investment Companies.**

(a) Not applicable.

(b) Not applicable.

**Item 8. Changes in and Disagreements with Accountants for Open-End Management Investment Companies.**

Not applicable.

**Item 9. Proxy Disclosures for Open-End Management Investment Companies.**

(1) Not applicable.

(2) Not applicable.

(3) Not applicable.

**Item 10. Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies.**

(1) Not applicable.

(2) Not applicable.

(3) Not applicable.

(4) Not applicable.

**Item 11. Statement Regarding Basis for Approval of Investment Advisory Contract.**

(1) Not applicable.

(2) Not applicable.

**Item 12. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.**

Item not applicable to semi-annual report.

**Item 13. Portfolio Managers of Closed-End Management Investment Companies.**

(a) Item not applicable to semi-annual report.

(b) Not applicable.

**Item 14. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Total Number<br> of Shares (or <br> Units) <br> Purchased** | **Average Price<br> Paid per Share <br> (or Unit)** | **Total Number of <br> Shares<br> (or Units) Purchased<br> as<br> Part of Publicly<br> Announced Plans or<br> Programs** | **Maximum Number <br> of<br> Shares (or Units)<br> that<br> May Yet Be<br> Purchased<br> Under the Plans or <br> Programs** |
| 1/1/25-1/31/25 | 0 | $-- | 0 | 4828818 |
| 2/1/25-2/28/25 | 0 |  | 0 | 4828818 |
| 3/1/25-3/31/25 | 0 |  | 0 | 4828818 |
| 4/1/25-4/30/25 | 0 |  | 0 | 4828818 |
| 5/1/25-5/31/25 | 0 |  | 0 | 4828818 |
| 6/1/25-6/30/25 | 0 | -- | 0 | 4828818 |
| **Total** | 0 | $-- | 0 |  |

---

(1) There were no shares purchased other than through a publicly announced plan or program.

(2a) The share repurchase plan was announced on December 11, 2014, with an additional authorization announced on December 18, 2018. On September 22, 2020, the Fund announced an enhanced discount management and liquidity program whereby the Fund will purchase shares, subject to certain restrictions, when the discount exceeds 15% of net asset value for at least 30 consecutive trading days. The enhanced program also provides the Fund will engage in a proportional tender offer to purchase shares when the discount exceeds 19% of net asset value for 30 consecutive trading days, not to exceed one such offer in any twelve-month period.

(2b) The share amount approved in 2014 was 5% of then-outstanding shares, or 4,667,000 shares, and 5,314,566 additional shares were approved in 2018.

(2c) The share repurchase plan has no expiration date.

(2d) None.

(2e) None.

**Item 15. 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 16. 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 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 17. Disclosures of Securities Lending Activities for Closed-End Management Investment Companies.**

Item not applicable to semi-annual report.

**Item 18. Recovery of Erroneously Awarded Compensation.**

(a) Not applicable.

(b) Not applicable.

**Item 19. Exhibits.**

---

| | | |
|:---|:---|:---|
| (a) | (1) | Not applicable; see registrant's response to Item 2 above. |
|  | (2) | Not applicable. |
|  | [(3)](tm2517078d1_ex99-cert.htm) | [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.](tm2517078d1_ex99-cert.htm) |
|  | (4) | Not applicable. |
|  | (5) | 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.](tm2517078d1_ex99-906cert.htm)

---

| | |
|:---|:---|
|  | **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/ James P. Haynie |
|  | James P. Haynie |
|  | Chief Executive Officer |
|  | (Principal Executive Officer) |
| Date: | July 30, 2025 |
|  | 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/ James P. Haynie |
|  | James P. Haynie |
|  | Chief Executive Officer |
|  | (Principal Executive Officer) |
| Date: | July 30, 2025 |
| By: | /s/ Brian S. Hook |
|  | Brian S. Hook |
|  | Vice President & Chief Financial Officer |
|  | (Principal Financial Officer) |
| Date: | July 30, 2025 |

---

## Ex-99.Cert

**Exhibit 99.CERT**

**<u>CERTIFICATIONS</u>**

I, James P. Haynie, 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 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 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 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 30, 2025 | /s/ James P. Haynie |
|  | James P. Haynie |
|  | Chief Executive Officer<br> (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 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 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 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 30, 2025 | /s/ Brian S. Hook |
|  | Brian S. Hook |
|  | Vice President and Chief Financial Officer |
|  | (Principal Financial Officer) |

---

## Exhibit 99.906

**Exhibit 99.906CERT**

**<u>CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER</u>**

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, 2025, as filed with the Securities and Exchange Commission on the date hereof (the Report), I, James P. Haynie, Chief Executive Officer 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.

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|:---|:---|
| **BY:** | /s/ James P. Haynie |
|  | James P. Haynie |
|  | Chief Executive Officer <br> (Principal Executive Officer) |

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|:---|:---|
| **DATE:** | July 30, 2025 |

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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.

**<u>CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER</u>**

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, 2025, as filed with the Securities and Exchange Commission on the date hereof (the Report), I, Brian S. Hook, Vice President and Chief Financial Officer 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.

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| | |
|:---|:---|
| **BY:** | /s/ Brian S. Hook |
|  | Brian S. Hook |
|  | Vice President & Chief Financial Officer |
|  | (Principal Financial Officer) |

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| | |
|:---|:---|
| **DATE:** | July 30, 2025 |

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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.