Bancroft Fund Ltd. Declares Distribution of $3.17 Per Share
The Board of Trustees of Bancroft Fund Ltd. (NYSE American: BCV)
(the “Fund”) declared a $3.17 per share cash distribution payable
on December 28, 2021 to common shareholders of record on November
24, 2021. With this fourth quarter distribution, the total
distributions from the Fund for the calendar year 2021 would equate
to $4.13 per share, a 32% increase from $3.12 last year.
The Fund’s fiscal year ends October 31, 2021. Please remember
that past performance may not be indicative of future results.
Shareholders who are not members of the Fund’s Automatic
Dividend Investment Plan will be given the option to receive the
distribution either in cash or in beneficial shares of the Fund.
The distribution is taxable to shareholders whether or not they
choose to receive cash.
The expiration date of the option is December 15, 2021.
Shareholders who do not make an election will receive the
distribution in beneficial shares.
The number of shares that holders will be entitled to receive
under the share option will be determined on December 16, 2021,
either on the basis of the closing market price of the Fund’s
beneficial shares or its net asset value, whichever is lower on
The Fund intends to pay the greater of either an annual
distribution of 5% of the Fund’s trailing 12-month average
month-end market price or an amount that meets the minimum
distribution requirement of the Internal Revenue Code for regulated
Each quarter, the Board of Trustees reviews the amount of any
potential distribution from 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 pays an adjusting distribution in December, which includes
any additional income and net realized capital gains in excess of
the quarterly distributions. 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.
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 to the maximum federal income
tax rate for long term capital gains, 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 with income that 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, less expenses, 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, investment
company taxable 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 in 2021 to
common shareholders with respect to the Fund’s fiscal year ending
October 31, 2021 would include approximately 25% from net
investment income and 75% from net capital gains on a book basis.
This information 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. The final
determination of the sources of all distributions in 2021 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 individual shareholders with taxable accounts will receive
written notification regarding the components and tax treatment for
all 2021 distributions in early 2022 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.
About Bancroft Fund Ltd.
Bancroft Fund Ltd. is a diversified, closed-end management
investment company with $216 million in total net assets. BCV
invests primarily in convertible securities with the objectives of
providing income and the potential for capital appreciation,
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).
NYSE American – BCV CUSIP – 059695106
version on businesswire.com: https://www.businesswire.com/news/home/20211112005615/en/
Laurissa Martire (914) 921-5399
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