Bancroft Fund Ltd. Declares Distribution of $0.35 Per Share

Rhea-AI Summary

Bancroft Fund (NYSE American: BCV) declared a $0.35 per share cash distribution payable on December 30, 2025 to shareholders of record on November 24, 2025. Non‑participants in the Automatic Dividend Investment Plan may elect cash or beneficial shares; the election expires December 15, 2025, and unpaid elections default to shares. Share counts for the share option will be set on December 16, 2025 using the lower of closing market price or NAV.

The Fund intends to pay the greater of an annual 5% distribution of its trailing 12‑month average month‑end market price or the IRC minimum for RICs. Distributions are taxable and may include long‑term capital gain, qualified dividend income, investment company taxable income, or return of capital; final sourcing will be determined after year end.

Positive

• $0.35 distribution payable Dec 30, 2025
• Shareholders may elect cash or beneficial shares through Dec 15, 2025
• Fund policy: intends to pay at least 5% annual of trailing 12‑month avg market price

Negative

• Distributions are taxable and may trigger up to 20% long‑term capital gains tax
• If earnings are insufficient, distributions may be treated as return of capital
• Distribution policy is subject to modification or termination by the Board at any time

RYE, N.Y., Nov. 12, 2025 (GLOBE NEWSWIRE) -- The Board of Trustees of Bancroft Fund Ltd. (NYSE American:BCV) (the “Fund”) declared a $0.35 per share cash distribution payable on December 30, 2025 to common shareholders of record on November 24, 2025.

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, 2025. 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, 2025, either on the basis of the closing market price of the Fund’s beneficial shares or its net asset value, whichever is lower on that date.

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. 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 2025 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 2025 distributions in early 2026 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 $178 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

FAQ

When is Bancroft Fund (BCV) paying the $0.35 distribution and who is eligible?

The distribution is payable on December 30, 2025 to shareholders of record on November 24, 2025.

How can BCV shareholders receive the November 2025 distribution?

Shareholders not in the Automatic Dividend Investment Plan may elect cash or beneficial shares by December 15, 2025; no election defaults to shares.

How will the share option conversion rate for BCV be determined?

The number of shares issuable under the option will be set on December 16, 2025 using the lower of the closing market price or the Fund’s NAV on that date.

What is Bancroft Fund’s ongoing distribution policy for BCV?

The Fund intends to pay the greater of an annual 5% distribution of its trailing 12‑month average month‑end market price or an amount meeting the IRC minimum for RICs.

Will the BCV distribution be taxable and how will tax components be reported?

Yes; distributions are taxable and may include long‑term capital gain, qualified dividend income, investment company taxable income, or return of capital; final components will be reported on Form 1099‑DIV in early 2026.

Could the BCV distribution reduce my cost basis?

If part of the distribution is characterized as a return of capital, it would generally reduce a shareholder’s cost basis rather than be immediately taxable.