Bancroft Fund announces $0.32 per share distribution

RYE, N.Y. - Bancroft Fund Ltd. (NYSE American: BCV), a closed-end management investment company currently trading at $17.92, has declared a cash distribution of $0.32 per share. This distribution is payable on June 23, 2025, to shareholders on record as of June 13, 2025. The Fund currently offers a substantial 7.09% dividend yield and has delivered an impressive 26.43% total return over the past year. According to InvestingPro, the Fund has maintained dividend payments for 55 consecutive years, with additional insights available to subscribers. The Fund’s distribution policy aims to pay an annual amount equal to 5% of the trailing 12-month average month-end market price or the minimum distribution requirement set by the Internal Revenue Code for regulated investment companies.

The Fund’s Board of Trustees reviews potential distributions quarterly, which may come from income, realized capital gains, or capital available. The Board remains committed to monitoring the Fund’s distribution level in relation to its net asset value and the prevailing financial market conditions. An adjusting distribution in December may be made to cover any additional income and net realized capital gains that exceed the quarterly distributions.

It is important to note that the distribution rate should not be seen as the dividend yield or total return on an investment in the Fund. Portions of the distribution may be treated as long-term capital gain or qualified dividend income, subject to a maximum federal income tax rate of 20% for individuals in taxable accounts, with the potential addition of a 3.8% Medicare surcharge for certain U.S. shareholders whose income surpasses specific thresholds.

If the Fund’s earnings do not meet or exceed the total distributions paid in a given year, the excess amount will be considered a return of capital. This is typically not taxable and would reduce a shareholder’s cost basis. For the fiscal year ending September 30, 2025, approximately 32% of each distribution is expected to come from net investment income, with the remaining 68% deemed a return of capital, based on the Fund’s current accounting records.

The final determination of the sources of all distributions for 2025 will be made after the year’s end and may differ from the quarterly estimates. Shareholders are advised not to infer the Fund’s investment performance from the current distribution amount. Taxable account shareholders will receive notifications regarding the tax treatment of all 2025 distributions in early 2026 via Form 1099-DIV.

Bancroft Fund Ltd., with a market capitalization of $104.45 million and trading at an attractive P/E ratio of 8.49, primarily invests in convertible securities. Managed by Gabelli Funds, LLC, the Fund seeks to provide income and the potential for capital appreciation. These objectives are considered relatively equal over the long term due to the nature of the securities in which it invests. InvestingPro analysis reveals several additional key metrics and insights about the Fund’s financial health, available exclusively to subscribers.

This distribution announcement is based on a press release statement from Bancroft Fund Ltd.

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