Corrected: Bancroft Fund Ltd. NAV Performance up 33% & Market Return up 50% Raises Annual Distribution 16% to $1.16 Per Share...
19 Fevereiro 2020 - 11:20AM
Business Wire
The Board of Trustees of Bancroft Fund Ltd. (NYSE American: BCV)
(the “Fund”) declared a $0.29 per share cash distribution payable
on March 24, 2020 to common shareholders of record on March 17,
2020. The $0.29 first quarter 2020 distribution is a 16% increase
from $0.25 in the same period last year and brings the 2020 minimum
annual distribution to $1.16 per share. The increase follows on the
strength of the Fund’s market return in 2019, which increased
50%.
The Fund intends to pay the greater of either an annual
distribution of 5% of funds 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 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 share-holder’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, ordinary
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, the current distribution paid in 2020 to common
shareholders with respect to the Fund’s fiscal year ending October
31, 2020 would include approximately 4% from net investment income
and 96% from net capital gains on a book basis.
The information herein, 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. The
final determination of the sources of all distributions in 2020
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 2020 distributions in early 2021 via Form
1099-DIV.
Returns represent past performance and do not guarantee future
results. Current performance may be lower or higher than the
performance data quoted. Investment return and principal value will
fluctuate so, upon redemption, shares may be worth more or less
than their original cost.
Investors should carefully consider the investment objectives,
risks, charges, and expenses of the Fund before investing. More
information regarding the Fund’s distribution policy and other
information is available by calling 800-GABELLI (800-422-3554) or
visiting www.gabelli.com.
About Bancroft Fund Ltd.
Bancroft Fund Ltd. is a diversified, closed-end management
investment company with $179 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. (NYSE:GBL).
About GAMCO Investors
GAMCO Investors, Inc., through its subsidiaries, manages private
advisory accounts (GAMCO Asset Management Inc.), mutual funds and
closed-end funds (Gabelli Funds, LLC). As of December 31, 2019,
GAMCO Investors had $36.5 billion in assets under management.
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version on businesswire.com: https://www.businesswire.com/news/home/20200219005568/en/
Investor Contact Laurissa Martire at (914) 921-5070 or
lmartire@gabelli.com
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