BALTIMORE, Sept. 22, 2020 /PRNewswire/ -- Adams Diversified Equity Fund, Inc. (NYSE: ADX), and Adams Natural Resources Fund, Inc. (NYSE: PEO) announced today that each Fund has elected, by a unanimous resolution of each Fund's board of directors, to be subject to the Maryland Control Share Acquisition Act (MCSAA), effective as of September 22, 2020.
The objective of the MCSAA is to protect the interests of all shareholders of a Maryland corporation. It achieves this by limiting the voting power of a large investor or group acting in concert on newly acquired shares above various threshold levels that start at 10 percent. Those shares can be voted only if two-thirds of the shares held by the other shareholders agree to grant voting rights to these "control" shares.
The MCSAA limits the ability of an acquiring person to achieve a short-term gain at the expense of long-term value for the rest of the Fund's shareholders. The MCSAA will only apply to "control shares" acquired after September 22, 2020, the date that the Funds elected to be subject to the MCSAA. The above description of the MCSAA is only a high-level summary and investors should refer to the actual provisions of the MCSAA for more information.
In connection with the Funds' election to opt in to the MCSAA, each Fund has also established an enhanced discount management and liquidity program. In addition to the Funds' existing annual 6% minimum distribution commitments and discretionary share repurchase programs, each of the Funds will engage in open market share repurchases or conduct a proportional tender offer when the Fund's market price discount to net asset value exceeds certain levels. Generally, each Fund will engage in share repurchases when the discount exceeds 15% for a period of 30 trading days, and similarly, each Fund will engage in a proportional tender offer to repurchase shares when the discount exceeds 19% for 30 trading days. This enhanced discount management program is effective immediately.
For more information about Adams Funds, please visit: adamsfunds.com.
Since 1929, Adams Funds has consistently helped generations of investors reach their investment goals. Adams Funds is comprised of two closed-end funds, Adams Diversified Equity Fund, Inc. (NYSE: ADX) and Adams Natural Resources Fund, Inc. (NYSE: PEO). The Funds are actively managed by an experienced team with a disciplined approach and have paid dividends for more than 80 years across many market cycles. The Funds are committed to paying an annual distribution rate of 6% or more, providing reliable income to long-term investors. Shares can be purchased through our transfer agent or through a broker.
Lyn Walther │ Director of Shareholder Communications │800.638.2479 │ email@example.com
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SOURCE Adams Funds