Ellsworth Growth and Income Stock Price, News & Analysis

Ellsworth Growth and Income Fund Ltd (NYSE American: ECF) is a diversified, closed-end management investment company. According to the fund’s disclosures, its investment objective is to provide income and the potential for capital appreciation, and it views these two objectives as relatively equal over the long term because of the types of securities it holds.

The fund invests primarily in convertible securities and common stock. Convertible securities are hybrid instruments that can typically be converted into common stock, and the fund’s strategy centers on using these securities alongside equity positions to pursue its stated balance of income and growth potential.

Ellsworth Growth and Income Fund is classified in the finance and insurance sector within the securities and commodity exchanges industry. As a closed-end fund, its shares trade on the NYSE American under the ticker symbol ECF, and it reports total net assets in the hundreds of millions of dollars based on its public communications.

Investment approach and portfolio focus

The fund’s materials state that it invests in convertible and equity securities across a range of sectors. These sectors include healthcare, financial services, computer software and services, energy and utilities, real estate investment trusts, semiconductors, telecommunications, business services, food and beverage, consumer products, transportation, and consumer services, among others. This sector diversification is intended to support the fund’s dual objectives of income and capital appreciation.

Ellsworth Growth and Income Fund emphasizes the long-term nature of its strategy. Because of the characteristics of convertible securities and equities, the fund considers income generation and capital appreciation potential to be relatively equal priorities over extended periods.

Management and advisory relationship

The fund is managed by Gabelli Funds, LLC, which is described in the fund’s public communications as a subsidiary of GAMCO Investors, Inc. Gabelli Funds, LLC serves as the investment adviser, responsible for implementing the fund’s investment strategy and managing its portfolio of convertible and equity securities.

Distribution policy and shareholder payments

Ellsworth Growth and Income Fund has publicly described a distribution policy under which it 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.

The fund’s Board of Trustees reviews the amount of any potential distribution each quarter. In its announcements, the fund notes that the Board considers income, realized capital gains, and available capital, as well as the fund’s net asset value and the financial market environment. If necessary, the fund may pay an adjusting distribution in December to distribute additional income and net realized capital gains in excess of prior quarterly distributions.

The fund has stated that its distribution policy is subject to modification or termination by the Board of Trustees at any time, and that there can be no guarantee the policy will continue. It also notes that the distribution rate should not be considered the dividend yield or total return on an investment in the fund.

Tax characterization of distributions

Public communications from Ellsworth Growth and Income Fund explain that all or part of a distribution may be treated for tax purposes as long‑term capital gain, qualified dividend income, investment company taxable income, or return of capital. The fund has indicated that long‑term capital gains and qualified dividend income for individuals are subject to federal income tax rules applicable to those categories, and that certain U.S. shareholders who are individuals, estates, or trusts with income above specified thresholds may be subject to an additional Medicare surcharge on net investment income, which can include dividends from the fund and capital gains from the sale of fund shares.

The fund notes that if it does not generate sufficient earnings (defined as dividends and interest income, less expenses, and realized net capital gains) equal to or in excess of aggregate distributions in a given year, any amount distributed in excess of earnings would be deemed a return of capital. The fund explains that a return of capital is generally not taxable and is treated as a reduction in a shareholder’s cost basis.

According to the fund’s statements, long‑term capital gains, qualified dividend income, investment company taxable income, and return of capital, if any, are allocated on a pro‑rata basis to all distributions to common shareholders for the year. The fund provides shareholders with notices that estimate the components of each distribution and later issues Form 1099‑DIV to report the final tax characterization.

Capital structure and preferred shares

Ellsworth Growth and Income Fund has disclosed that it issued Series B Cumulative Preferred Shares with an aggregate liquidation value of approximately $25 million. These preferred shares have a stated annual distribution rate of 4.40% of their liquidation preference and are scheduled to pay distributions on a semiannual basis. The fund has also described put and call features associated with these preferred shares, with specified dates on which they are puttable and callable.

The issuance of preferred shares is part of the fund’s capital structure and can provide an additional layer of financing, while common shareholders continue to hold the residual interest in the fund’s net assets.

Regulated investment company framework

In its public communications, Ellsworth Growth and Income Fund refers to the Internal Revenue Code requirements for regulated investment companies. This reflects its status as an investment company that seeks to qualify for specific tax treatment by meeting distribution and other requirements. The fund’s stated distribution policy is tied in part to meeting these minimum distribution requirements.

Risk considerations and investor information

The fund regularly reminds investors that they should carefully consider the investment objectives, risks, charges, and expenses of the fund before investing. It notes that more complete information about these matters is available in its prospectus and other official materials. The fund also emphasizes that shareholders should not draw conclusions about investment performance solely from the amount of any particular distribution.

As a closed-end fund investing primarily in convertible securities and common stocks across multiple sectors, Ellsworth Growth and Income Fund is exposed to market, sector, and security‑specific risks associated with these asset classes. The fund’s communications highlight the importance of reviewing its official documents to understand these risks in detail.

Position within the financial sector

Within the broader financial and insurance sector, Ellsworth Growth and Income Fund operates as a closed-end investment company whose shares trade on an exchange. Its focus on convertible securities and common stock, combined with its stated objective of providing both income and potential capital appreciation, distinguishes its strategy from funds that concentrate solely on fixed income or purely on equity growth.

The fund’s relationship with Gabelli Funds, LLC as its investment adviser, and that firm’s status as a subsidiary of GAMCO Investors, Inc., situate Ellsworth Growth and Income Fund within a larger asset management organization that manages multiple open‑end funds, closed‑end funds, and other investment products.