Market Overview

Bancroft Fund Ltd Reaffirms Its 5% Minimum Distribution Policy and Declares Distribution of $0.25 Per Share

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The Board of Trustees of Bancroft Fund Ltd. (NYSE:BCV) (the
"Fund") reaffirmed its 5% distribution policy and declared a $0.25 per
share cash distribution payable on September 21, 2018 to common stock
shareholders of record on September 14, 2018.

The Fund intends to pay a quarterly distribution of an amount determined
each quarter by the Board of Trustees. Under the Fund's current
distribution policy, the Fund intends to pay a minimum annual
distribution of 5% of the Fund's trailing 12-month average month-end
market price or an amount sufficient to satisfy the minimum distribution
requirements of the Internal Revenue Code for regulated investment
companies.

Each quarter, the Board of Trustees reviews the amount of any potential
distribution and the income, realized capital gain, or capital
available. The Board of Trustees will continue to monitor the Fund's
distribution level, taking into consideration the Fund's net asset value
and the financial market environment. If necessary, the Fund will pay an
adjusting distribution in December which includes any additional income
and net realized capital gains in excess of the quarterly distributions
for that year to satisfy the minimum distribution requirements of the
Internal Revenue Code for regulated investment companies. The Fund's
distribution policy is subject to modification or termination by the
Board of Trustees at any time, and there can be no guarantee that the
policy will continue. The distribution rate should not be considered the
dividend yield or total return on an investment in the Fund.

The Fund is managed by Gabelli Funds, LLC, and able to make periodic
distributions of long term capital gains. All or part of the
distribution may be treated as long-term capital gain or qualified
dividend income (or a combination of both) for individuals, each subject
up to the maximum federal income tax rate, which is currently 20% in
taxable accounts for individuals (or less depending on an individual's
tax bracket). In addition, certain U.S. shareholders who are
individuals, estates or trusts and whose income exceeds certain
thresholds will be required to pay a 3.8% Medicare surcharge on their
"net investment income", which includes dividends received from the Fund
and capital gains from the sale or other disposition of shares of the
Fund.

If the Fund does not generate sufficient earnings (dividends and
interest income and realized net capital gain) equal to or in excess of
the aggregate distributions paid by the Fund in a given year, then the
amount distributed in excess of the Fund's earnings would be deemed a
return of capital. Since this would be considered a return of a portion
of a shareholder's original investment, it is generally not taxable and
would be treated as a reduction in the shareholder's cost basis.

Long-term capital gains, qualified dividend income, ordinary income, and
return of capital, if any, will be allocated on a pro-rata basis to all
distributions to common shareholders for the year. Based on the
accounting records of the Fund currently available, each of the
distributions paid to common shareholders in 2018 would include
approximately 7% from net investment income and 93% from net capital
gains on a book basis. This does not represent information for tax
reporting purposes. The estimated components of each distribution are
updated and provided to shareholders of record in a notice accompanying
the distribution and are available on our website (www.gabelli.com).
The final determination of the sources of all distributions in 2018 will
be made after year end and can vary from the quarterly estimates.
Shareholders should not draw any conclusions about the Fund's investment
performance from the amount of the current distribution. All
shareholders with taxable accounts will receive written notification
regarding the components and tax treatment for all 2018 distributions in
early 2019 via Form 1099-DIV.

Investors should carefully consider the investment objectives, risks,
charges, and expenses of the Fund before investing.
More
information regarding the Fund's distribution policy and other
information about the Fund is available by calling 800-GABELLI
(800-422-3554) or visiting
www.gabelli.com.

Bancroft Fund Ltd. is a diversified management investment company with
$167 million in total net assets. BCV invests primarily in convertible
securities, with the objectives of providing income and the potential
for capital appreciation; which objectives the Fund considers to be
relatively equal, over the long-term, due to the nature of the
securities in which it invests. The Fund is managed by Gabelli Funds,
LLC, a subsidiary of GAMCO Investors, Inc. (NYSE:GBL).

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