SOURCE: Bancroft Fund Ltd.

August 17, 2015 17:00 ET

Bancroft Fund Ltd. Declares a Third Quarter Dividend and Reports Share Repurchase Activity

MORRISTOWN, NJ--(Marketwired - Aug 17, 2015) - The Board of Trustees of Bancroft Fund Ltd. (NYSE MKT: BCV) announced today that it has declared a dividend of 25.7 cents ($0.257) per share. The dividend is payable on September 24, 2015 to shareholders of record on September 10, 2015. Based on our current estimates, the Fund anticipates that approximately 12.2 cents ($0.122) per share of the dividend will be paid from accumulated net investment income, and approximately 13.5 cents ($0.135) per share will represent a return of capital. These estimates and the sources of the Fund's dividends and distributions are determined at the time of declaration. However dividends and distributions are subject to re-characterization for tax purposes after the end of the fiscal year. A non-taxable return of capital, if any, cannot be determined until after the end of the Fund's fiscal year. Shareholders with taxable accounts will receive written notification regarding the components and tax treatment of distributions via Form 1099-DIV.

As previously reported, the Fund has adopted a minimum distribution policy pursuant to which it will distribute to its shareholders each fiscal year (ending October 31) an aggregate amount of money which equals or exceeds 5% of the Fund's trailing 12-month average month-end market price. Such distributions will be made from undistributed investment income or realized capital gains, but may also include the return of capital. The minimum distribution policy will be subject to regular review by the Board of Trustees and may be terminated prospectively at any time.

SHARE REPURCHASE REPORT

In accordance with the revised share repurchase program adopted by its Board of Trustees (up to 7% of the Fund's outstanding shares or approximately 377,000 shares), the Fund began making open market purchases of its shares in November 2014. As of August 14, 2015, the Fund has repurchased 143,517 shares in the open market pursuant to the repurchase program at an aggregate cost of $2,964,729. Purchases pursuant to the repurchase program have been made in accordance with the limitations of Rule 10b-18 promulgated under the Securities Exchange Act of 1934. The extent to which the Fund repurchases its shares and the timing of such repurchases depends on market conditions and other considerations as determined by the Fund's management team, and in accordance with the limitations of Rule 10b-18.

Bancroft Fund Ltd. operates as a closed-end, diversified management investment company and 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. Its shares are traded on the NYSE MKT Exchange under the ticker symbol BCV.

CUSIP# 059 695 106

Contact Information