Bancroft Fund Ltd. Declares Distribution of $0.32 Per Share

Rhea-AI Summary

The Bancroft Fund (NYSE American: BCV) announced a $0.32 per share cash distribution payable on June 21, 2024, for shareholders of record as of June 13, 2024. The Fund's policy is to distribute the greater of either an annual 5% of its 12-month average market price or the minimum IRS-required amount for regulated investment companies. The Board of Trustees reviews distributions quarterly, considering the Fund’s net asset value and market conditions. Distributions may be adjusted in December to account for additional income and capital gains. Approximately 31% of 2024 distributions are from net investment income and 69% from return of capital. Tax implications vary based on individual circumstances and will be detailed in Form 1099-DIV sent in early 2025.

Positive

• Declared $0.32 per share cash distribution.
• Distribution payable on June 21, 2024.
• Fund's policy ensures a minimum annual distribution of 5% or IRS-required amount.
• Quarterly review of distribution levels based on net asset value and market environment.
• Potential December adjustments for additional income and capital gains.
• Approximately 31% of 2024 distributions from net investment income.

Negative

• 69% of 2024 distributions deemed a return of capital.
• Return of capital reduces the shareholder’s cost basis and may not be taxable.
• No guarantee that distribution policy will continue.
• Distribution rate is not equivalent to dividend yield or total return on investment.
• Potential tax implications including a 3.8% Medicare surcharge for higher-income shareholders.

RYE, N.Y., May 16, 2024 (GLOBE NEWSWIRE) -- The Board of Trustees of Bancroft Fund Ltd. (NYSE American:BCV) (the “Fund”) declared a $0.32 per share cash distribution payable on June 21, 2024 to common shareholders of record on June 13, 2024.

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 investment companies.

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 current 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 2024 to common shareholders with respect to the Fund’s fiscal year ending September 30, 2024 would include approximately 31% from net investment income and 69% would be deemed a return of capital 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 (www.gabelli.com). The final determination of the sources of all distributions in 2024 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 2024 distributions in early 2025 via Form 1099-DIV.

Investors should carefully consider the investment objectives, risks, charges, and expenses of the Fund before investing. For more information regarding the Fund’s distribution policy and other information about the Fund, call:

Laurissa Martire
(914) 921-5399

About Bancroft Fund Ltd.
Bancroft Fund Ltd. is a diversified, closed-end management investment company with $139 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. (OTCQX: GAMI).

NYSE American – BCV
CUSIP – 059695106

BANCROFT FUND LTD.
Investor Relations Contact:
Laurissa Martire
(914) 921-5399
lmartire@gabelli.com

FAQ

What is the distribution amount declared by Bancroft Fund for June 2024?

Bancroft Fund declared a $0.32 per share cash distribution payable on June 21, 2024.

When is the record date for Bancroft Fund 's June 2024 distribution?

The record date for the distribution is June 13, 2024.

How often does the Board of Trustees review the distribution amount for Bancroft Fund ?

The Board of Trustees reviews the distribution amount quarterly.

What percentage of Bancroft Fund 's 2024 distributions is from net investment income?

Approximately 31% of 2024 distributions are from net investment income.

What is the impact of the return of capital on shareholders of Bancroft Fund ?

The return of capital reduces the shareholder’s cost basis and is generally not taxable.