Bancroft Fund declares $0.32/share cash distribution, up 5%.

• Bancroft Fund Ltd declares $0.32 per share cash distribution • Payable on Sept 23, 2025 to common shareholders of record on Sept 16, 2025 • Distribution to meet minimum distribution requirement or 5% of trailing 12-month average market price • Board of Trustees reviews distribution amount quarterly • Adjusting distribution may be paid in December if necessary

Bancroft Fund Ltd. (NYSE American: BCV) has announced a quarterly cash distribution of $0.32 per share, payable on September 23, 2025, to shareholders of record as of September 16, 2025 [1]. The fund's distribution policy dictates that it will pay the greater of either 5% of its trailing 12-month average month-end market price or the minimum required under IRS regulations for investment companies. This distribution is a significant component of the fund's strategy to provide income and potential capital appreciation to its investors.

The distribution composition for the 2025 period is notable, with approximately 39% coming from net investment income, 25% from net capital gains, and 36% classified as return of capital on a book basis [1]. The substantial return of capital component suggests that while the fund is returning a portion of shareholders' original investment capital, it may be struggling to generate sufficient earnings to fully cover its targeted distribution level. This situation can potentially erode the fund's asset base over time if not offset by portfolio appreciation.

The Board of Trustees regularly reviews the distribution level, taking into consideration the fund's net asset value and current market conditions. This oversight ensures that the fund's distribution policy remains aligned with its investment objectives and market conditions [1]. However, investors should be aware that the distribution policy is subject to modification or termination at any time, underscoring that the current 5% target is not guaranteed indefinitely.

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 details about the Fund, contact Laurissa Martire at (914) 921-5399 [1].

References:
[1] https://www.stocktitan.net/news/BCV/bancroft-fund-ltd-declares-distribution-of-0-32-per-de9y5vkw7tcc.html
[2] https://www.globenewswire.com/news-release/2025/08/26/3139161/0/en/Bancroft-Fund-Ltd-Increases-Annual-Distribution-10-to-1-40-From-1-28.html
[3] https://www.quiverquant.com/news/Bancroft+Fund+Ltd.+Increases+Quarterly+Distribution+by+10%25+to+%240.35+per+Share