-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, LC2bLhM2JKLluSKxv85INVNR8jxPHJDnU1ryVoS1GSxUjzQAbuZ2GOBCSIohqD1V 8OqLayNRdaVwelfxB7SgZg== 0000950123-96-002630.txt : 19960523 0000950123-96-002630.hdr.sgml : 19960523 ACCESSION NUMBER: 0000950123-96-002630 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19960331 FILED AS OF DATE: 19960522 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: ELLSWORTH CONVERTIBLE GROWTH & INCOME FUND INC CENTRAL INDEX KEY: 0000793040 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] STATE OF INCORPORATION: MD FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-04656 FILM NUMBER: 96570949 BUSINESS ADDRESS: STREET 1: 65 MADISON AVE 4TH FL CITY: MORRISTOWN STATE: NJ ZIP: 07960 BUSINESS PHONE: 2122699236 MAIL ADDRESS: STREET 1: 65 MADISON AVE STREET 2: 4TH FLOOR CITY: MORRISTOWN STATE: NJ ZIP: 07960 N-30D 1 FORM N-30D 1 ELLSWORTH CONVERTIBLE GROWTH AND INCOME FUND, INC. TO OUR SHAREHOLDERS: June 1996 will mark Ellsworth's tenth anniversary. Such an event is an appropriate time for reflection and consideration of the work done so far and how to build on it. We believe that the Fund's stated goal of achieving a high level of total return on its assets through a combination of current income and capital appreciation has been met during this time. Indeed, the Fund's investments have been successful enough to earn an overall four-star (above average) rating from Morningstar*. Morningstar also provided a historical profile of the Fund that indicated that within the Fund's peer group its return was "above average" and the risk taken was "below average". Finally, for calendar 1995, Ellsworth outperformed all other U.S. closed-end convertible funds to win a performance award from Lipper Analytical Services.** All this is evidence that Ellsworth's past performance did meet its stated goal. The future is uncertain but we intend to approach it with the same `optimistic skepticism' and the same belief that convertible bonds and preferred stocks can provide an attractive mix of income and capital appreciation. As we look ahead we see a market that has the potential to be ranked with other long-term extended bull markets of the past. While we do expect a correction or bear market to appear eventually, we believe that the lower tax policies of the eighties that made for tremendous investment and reinvestment in ideas, inventions, corporations and a multitude of breakthroughs combined with the surge in savings put into mutual funds, pension funds and 401(K) accounts have made a solid base for this extended expansion. This implies that this is a bull market with real assets under it, not just hype and hot air. As we have discussed in several reports to you, the convertible market is evolving. The `plain vanilla' part of the market has been shrinking both in relative size and in number of issues. Technical changes in several types of convertibles available today have made for instruments that clearly are convertible bonds or preferred stocks, but with differences that were not anticipated ten years ago. We intend to review the Fund's operating policies and restrictions to determine if they need revision to maintain the wide array of diverse investments available to the Fund that fall within the management's historical risk reward parameters. We estimate that the Fund's net asset value (NAV) rose 4.91%, 24.56% and 92.48% for the three-month, one-year and five-year periods ended March 31, 1996 (assuming all dividends reinvested at NAV). The value of the Fund's shares rose 2.54%, 24.82% and 100.44% for those three-month, one-year and five-year periods (assuming all dividends reinvested at actual reinvestment price). As quoted in Barron's, Lipper Analytical Services reported that the average open-end convertible fund's NAV+ rose 4.71%, 20.52% and 89.61% (also assuming all dividends reinvested). At its April meeting, the Board of Directors declared a twelve cents per share dividend from net investment income, payable on May 28, 1996 to shareholders of record May 13, 1996. /s/ Ronald E. Dinsmore /s/ Thomas H. Dinsmore Chairman President May 15, 1996 - --------- * Morningstar is an independent statistical service that rates mutual funds. ** Lipper Analytical Services, Inc. is an independent statistical service. + Average NAV of the forty-one open-end convertible funds followed by Lipper Analytical Services, Inc. 2 ELLSWORTH CONVERTIBLE GROWTH AND INCOME FUND, INC. INVESTMENTS MARCH 31, 1996
PRINCIPAL AMOUNT VALUE OR SHARES (NOTE A) ---------- ----------- ADVERTISING--5.1% Interpublic Group Cos., Inc. 3 3/4% 2002 Euro. cv. sub. deb ............................. $1,175,000 $ 1,239,625 Interpublic Group Cos., Inc. 3 3/4% 2002 cv. sub. deb.* ................................. 415,000 436,788 Omnicom Group, Inc. 4 1/2% 2000 cv. sub. deb.* .......................................... 1,275,000 2,091,000 ----------- 3,767,413 ----------- AEROSPACE--4.3% Morgan Stanley Group, Inc. 0% 2000 medium-term exchangeable notes (exch. for Boeing Company common stock) ................................................. 2,000,000 2,030,000 Orbital Sciences Corp. 6 3/4% 2003 cv. sub. deb ......................................... 1,122,000 1,166,880 ----------- 3,196,880 ----------- AUTOMOTIVE--2.8% Ford Motor Co. depositary shares (representing $4.20 cum. cv. A pfd.) ................... 15,000 shs 1,680,000 MascoTech Industries, Inc. 6% cv. pfd ................................................... 30,100 shs 421,400 ----------- 2,101,400 ----------- BANKING--13.9% Barnett Banks, Inc. $4.50 cum. cv. A pfd ................................................ 20,000 shs 2,355,000 Boatmens Bancshares, Inc. depositary shares (representing 7% cum. cv. A pfd.) ........... 32,500 shs 1,105,000 Chemical Banking Corp. common stock ..................................................... 15,375 shs 1,083,938 First Commerce Corp. 7 1/4% cum. cv. pfd ................................................ 20,000 shs 765,000 National City Corp. depositary shares (representing $4.00 cum. cv. pfd.) ................ 19,100 shs 1,602,013 NationsBank Corp. common stock .......................................................... 10,035 shs 804,054 ONBANCorp, Inc. 6 3/4% cv. B pfd ........................................................ 15,000 shs 421,875 Washington Mutual Savings Bank $6.00 cv. perpetual D pfd ................................ 15,000 shs 1,785,000 Jefferson-Pilot Corp. 7 1/4% 2000 FCENS# ................................................ 5,000 420,000 ----------- 10,341,880 ----------- BROADCASTING & CABLE--4.4% Cablevision Systems Corp. depositary shares (representing 8 1/2% cum. cv. exch. pfd.) ... 40,000 shs 1,130,000 Triathlon Broadcasting Co. depositary shares (representing 9% mandatory cv. pfd.) ....... 50,000 shs 550,000 International CableTel, Inc. 7 1/4% 2005 cv. sub. notes* ................................ 600,000 741,000 Comcast Corp. 3 3/8% 2005 cv. sub. deb .................................................. 975,000 897,000 ----------- 3,318,000 ----------- CAPITAL GOODS--5.7% Westinghouse Electric Corp. depositary shares (representing $1.30 cv. C pfd.) ........... 72,000 shs 1,300,500 Cooper Industries, Inc. 7.05% 2015 cv. sub. deb ......................................... 1,067,000 1,104,345 General Signal Corp. 5 3/4% 2002 cv. sub. notes ......................................... 1,750,000 1,811,250 ----------- 4,216,095 ----------- COMMUNICATIONS--3.6% Comcast Cellular Corp. 0% 2000 senior participating zero coupon redeemable series A notes 1,200,000 894,000 MFS Communications Co., Inc. common stock ............................................... 177 shs 11,018 MFS Communications Co., Inc. depositary shares (representing 8% cum. cv. A pfd.) ........ 15,000 shs 826,875 Sprint Corp. 8 1/4% 2000 FCENS# (exch. for Southern New Eng. Telecom. common stock) ..... 25,000 968,750 ----------- 2,700,643 ----------- DATA-PROCESSING SERVICES--7.2% General Motors Corp. (GME) common stock ................................................. 21,117 shs 1,203,669 Wang Laboratories, Inc. depositary shares (representing 6 1/2% cum. cv. B pfd.)* ........ 7,500 shs 411,563 American Express Company 6 1/4% 1996 FCENS# (exch. for First Data Corp. common stock) ... 35,000 2,065,000 First Financial Management Corp. 5% 1999 cv. sub. deb ................................... 1,000,000 1,715,000 ----------- 5,395,232 ----------- ENERGY--6.4% Chieftain International Funding Corp. 71 1/44% cv. red. pfd ............................. 41,000 shs 1,071,125 Unocal Corp. $3.50 cv. pfd.* ............................................................ 25,000 shs 1,450,000 AES Corp. 6 1/2% 2002 cv. deb ........................................................... 375,000 408,750 Pennzoil Company 4 3/4% 2003 exch. sr. deb. (exch. for Chevron Corp. common stock) ...... 500,000 522,500 Pennzoil Company 6 1/2% 2003 exch. sr. deb. (exch. for Chevron Corp. common stock) ...... 1,000,000 1,340,000 ----------- 4,792,375 ----------- ENVIRONMENTAL SERVICES--1.0% Sanifill, Inc. 5% 2006 cv. sub. deb ..................................................... 750,000 742,500 ----------- FINANCIAL & INSURANCE--12.9% American General Delaware, LLC 6% cv. A MIPS+ ........................................... 30,000 shs 1,548,750 Old Republic International Corp. common stock ........................................... 58,536 shs 1,902,420 Pioneer Financial Services, Inc. common stock ........................................... 37,610 shs 611,163 American Travellers Corp. 6 1/2% 2005 cv. sub. deb ...................................... 750,000 1,095,000 Chubb Capital Corp. 6% 1998 Euro. cv. sub. deb .......................................... 1,300,000 1,423,500 First Central Financial Corp. 9% 2000 cv. sub. deb ...................................... 925,000 934,250 Pioneer Financial Services, Inc. 6 1/2% 2003 cv. sub. notes ............................. 500,000 512,500 Pioneer Financial Services, Inc. 8% 2000 cv. sub. deb ................................... 50,000 68,000 US West, Inc. 7 5/8% 1998 FCENS# (exch. for Enhance Financial Services Group, Inc. common stock) ......................... 55,000 1,512,500 ----------- 9,608,083 -----------
3
PRINCIPAL AMOUNT VALUE OR SHARES (NOTE A) --------- ---------- FOODS--2.1% ConAgra, Inc. common stock ........................................................ 10,886 shs $ 442,244 Grand Metropolitan Public Limited Co. 6 1/2% 2000 cv. sub. deb.* .................. 1,000,000 1,095,000 ---------- 1,537,244 ---------- HEALTH CARE & DRUGS--8.3% SmithKline Beecham plc ADR's (representing equity units) .......................... 18,600 957,900 Ciba Geigy Corp. 6 1/4% 2016 exch. sub. deb.* (exch. for ALZA Corp. common stock).. 500,000 517,500 Medco Containment Service, Inc. 6% 2001 cv. sub. deb .............................. 1,250,000 2,593,750 Roche Holdings, Inc. 0% 2010 liquid yield option notes* ........................... 2,500,000 1,115,625 Sandoz Capital BVI Ltd. 2% 2002 cv. sub. notes .................................... 500,000 556,875 TheraTx, Inc. 8% 2002 cv. sub. notes* ............................................. 500,000 460,000 ---------- 6,201,650 ---------- HOTEL SERVICES--1.0% HFS, Inc. 43 1/4% 2003 cv. senior notes ........................................... 250,000 258,125 Marriott International, Inc. 0% 2011 liquid yield option notes .................... 875,000 461,563 ---------- 719,688 ---------- OFFICE EQUIPMENT--1.0% Alco Standard Corp. depositary shares (representing 6 1/2% cv. BB pfd.) ........... 7,500 shs 712,500 ---------- PAPER & PAPER PRODUCTS--1.2% International Paper Capital Trust Company 5 1/4% cv. pfd.* ....................... 20,000 shs 915,000 ---------- RETAIL--0.2% Tops Appliance City, Inc. 6 1/2% 2003 cv. sub. deb ................................ 400,000 64,000 ---------- TECHNOLOGY--9.1% Conner Peripherals, Inc. 6 1/2% 2002 cv. sub. deb ................................. 850,000 952,000 Conner Peripherals, Inc. 6 3/4% 2001 cv. sub. deb ................................ 1,250,000 1,301,563 Emerson Radio Corp. 8 1/2% 2002 sr. cv. sub. deb.* ................................ 750,000 630,000 Motorola, Inc. 0% 2013 liquid yield option notes .................................. 350,000 260,750 Quantum Corp. 5% 2003 cv. sub. notes* ............................................. 500,000 502,500 Texas Instruments, Inc. 2 3/4% 2002 Euro. cv. sub. deb ............................ 150,000 187,125 Thermo Electron Corp. 5% 2001 cv. sub. deb.* ...................................... 275,000 530,750 Thermo Electron Corp. 4 1/4% 2003 cv. sub. deb.* .................................. 925,000 1,133,125 Thermo Optek Corp. 5% 2000 cv. sub. deb.* ......................................... 200,000 226,000 Thermo Quest Corp. 5% 2000 cv. sub. deb.* ......................................... 125,000 141,250 3Com Corp. 10 1/4% 2001 cv. sub. notes* ........................................... 250,000 353,438 VLSI Technology, Inc. 8 1/4% 2005 cv. sub. notes .................................. 600,000 559,500 ---------- 6,778,001 ---------- TRANSPORTATION--4.1% Delta Air Lines, Inc. depositary shares (representing $3.50 cum. cv. C pfd.) ...... 5,000 shs 305,625 AMR Corp. 6 1/8% 2024 cv. sub. deb ................................................ 1,000,000 1,153,750 Delta Air Lines, Inc. 3.23% 2003 cv. sub. notes ................................... 1,075,000 1,065,594 Mercury Air Group, Inc. 7 3/4% 2006 cv. sub. deb .................................. 500,000 565,000 ---------- 3,089,969 ---------- U.S. TREASURY NOTES--0.0% 6 5/8% 3/31/97..................................................................... 25,000 25,273 CORPORATE SHORT-TERM NOTES--2.5% Sears Roebuck Acceptance Corp. 5.10% 4/1/96 ....................................... 1,250,000 1,248,938 Sears Roebuck Acceptance Corp. 5.20% 4/1/96 ....................................... 600,000 599,740 ---------- 1,848,678 ---------- TOTAL BONDS AND NOTES--57.6% ...................................................... $42,950,194 TOTAL PREFERRED STOCKS--27.3% ..................................................... 20,357,226 TOTAL COMMON STOCKS--9.4% ......................................................... 7,016,406 TOTAL CORPORATE SHORT-TERM NOTES--2.5% ............................................ 1,848,678 ---------- TOTAL INVESTMENTS--96.8% .......................................................... 72,172,504 OTHER ASSETS AND LIABILITIES, NET--3.2% ........................................... 2,395,321 ---------- TOTAL NET ASSETS--100.0% .......................................................... $74,567,825 ===========
- ------------ * Rule 144A security, may be sold only to qualified institutional buyers. # Forced Conversion Exchangeable Notes + Monthly Income Preferred Securities. ! Collateral for a letter of credit. The cost of investments for federal income tax purposes is $61,017,155 resulting in gross unrealized appreciation and depreciation of $12,340,741 and $1,185,392, respectively, or net unrealized appreciation of $11,155,349 on a tax cost basis. See accompanying notes to financial statements. 4 ELLSWORTH CONVERTIBLE GROWTH AND INCOME FUND, INC. STATEMENT OF ASSETS AND LIABILITIES (UNAUDITED)
MARCH 31, 1996 -------------- ASSETS: Investments at value (cost $61,017,155) (Note A) ................................................ $72,172,504 Cash ............................................................................................ 1,960,416 Dividends and interest receivable ............................................................... 606,920 Other assets .................................................................................... 10,516 ----------- Total assets .................................................................................. 74,750,356 ----------- LIABILITIES: Payable for securities purchased ................................................................ 127,925 Accrued management fee (Note B) ................................................................. 46,102 Accrued expenses ................................................................................ 8,504 ----------- Total liabilities ............................................................................. $ 182,531 ----------- NET ASSETS AT VALUE ............................................................................... $74,567,825 =========== NET ASSETS CONSIST OF: Undistributed net investment income ............................................................. $ 694,082 Undistributed net realized gain from investment transactions .................................... 2,064,449 Unrealized appreciation on investments .......................................................... 11,155,349 Capital shares (Note C) ......................................................................... 66,435 Additional paid-in capital ...................................................................... 60,587,510 ----------- NET ASSETS AT VALUE ............................................................................... $74,567,825 =========== Net asset value per share ($74,567,825 divided by 6,643,517 outstanding shares) ................... $ 11.22 ===========
- -------------------------------------------------------------------------------- STATEMENT OF CHANGES IN NET ASSETS
SIX MONTHS ENDED YEAR ENDED MARCH 31, 1996 SEPTEMBER 30, 1995 ---------------- ------------------ Increase in net assets from operations: Net investment income ...................................................... $ 1,495,845 $ 3,162,167 Net realized gain from investment transactions ............................. 2,064,449 1,864,104 Net increase in unrealized appreciation of investments ..................... 3,162,744 6,758,963 ----------- ----------- Net increase in net assets resulting from operations ..................... 6,723,038 11,785,234 Dividends paid from net investment income .................................... (1,523,421) (3,313,565) Distribution from net realized gain on investments ........................... (1,867,368) (1,425,603) Capital share transactions (Note C) .......................................... 1,466,314 1,407,527 ----------- ----------- Increase in net assets ................................................... 4,798,563 8,453,593 Net assets at beginning of period ............................................ $69,769,262 61,315,669 ----------- ----------- Net assets at end of period (including undistributed net investment income of $694,082 and $724,705, respectively) ............................. $74,567,825 $69,769,262 =========== ===========
See accompanying notes to financial statements. 5 STATEMENT OF OPERATIONS Six Months Ended March 31, 1996 (unaudited) INVESTMENT INCOME (Note A) Interest ..................................................... $1,180,792 Dividends .................................................... 724,769 ---------- Total Income ............................................... 1,905,561 ---------- EXPENSES (Note B): Management fee ............................................... 267,233 Custodian .................................................... 9,942 Transfer agent ............................................... 13,917 Professional fees ............................................ 28,024 Reports to Shareholders ...................................... 33,494 Directors' fees .............................................. 16,550 Treasurer's office ........................................... 12,500 Listing fee .................................................. 9,500 Other ........................................................ 18,556 ---------- Total Expenses ................................................. 409,716 ---------- NET INVESTMENT INCOME .......................................... $1,495,845 ========== REALIZED AND UNREALIZED GAIN ON INVESTMENTS: Net realized gain from investment transactions ................. 2,064,449 Net increase in unrealized appreciation of investments ......... 3,162,744 ---------- Net gain on investments ........................................ 5,227,193 ---------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ........... $6,723,038 ==========
- -------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS Selected data for a share of common stock outstanding
SIX MONTHS YEARS ENDED SEPTEMBER 30, ENDED ------------------------------------------------------ PER SHARE OPERATING PERFORMANCE: MARCH 31, 1996+ 1995 1994 1993 1992 1991 --------------- ------- ------- ------- ------- ------- Net asset value, beginning of period .... $ 10.76 $ 9.72 $ 10.39 $ 9.31 $ 8.45 $ 7.50 ------- ------- ------- ------- ------- ------- Net investment income ................... .23 .48 .51 .53 .54 .53 Net realized and unrealized gain (loss) . 76 1.30 (.58) 1.14 .82 1.00 ------- ------- ------- ------- ------- ------- Total from investment operations ...... .99 1.78 (.07) 1.67 1.36 1.53 Less Distributions: ..................... Dividends from net investment income .... (.24) (.51) (.53) (.50) (.50) (.58) Distributions from realized gains ....... (.29) (.23) (.07) (.09) -- -- ------- ------- ------- ------- ------- ------- Total distributions ................... (.53) (.74) (.60) (.59) (.50) (.58) ------- ------- ------- ------- ------- ------- Net asset value, end of period .......... 11.22 10.76 9.72 10.39 9.31 8.45 ======= ======= ======= ======= ======= ======= Net assets, end of period (000's) ....... 74,568 69,769 61,316 64,457 56,946 51,687 Market price, end of period ............. 9.625 9.125 8.375 9.375 8.375 7.375 Total Investment Return: Based on market value ................. 11.40 % 18.95 % (4.46)% 19.73 % 20.97 % 25.41 % Based on net asset value* ............. 9.36 % 19.50 % (0.61)% 18.60 % 16.55 % 21.14 % Ratios/Supplemental Data: Ratio of expenses to average net assets . 1.1 %** 1.2 % 1.1 % 1.2 % 1.2 % 1.4 % Ratio of net investment income to average net assets ............................ 4.2 %** 5.0 % 5.2 % 5.5 % 6.1 % 6.7 % Portfolio turnover rate ................. 22 % 44 % 45 % 99 % 70 % 37 % Average commission rate paid ............ $ 0.076
- ---------------- + Unaudited * Assumes valuation of the Fund's shares, and reinvestment of dividends, at net asset values. ** Annualized See accompanying notes to financial statements. 6 ELLSWORTH CONVERTIBLE GROWTH AND INCOME FUND, INC. NOTES TO FINANCIAL STATEMENTS (A) Ellsworth Convertible Growth and Income Fund, Inc. (the "Fund") is registered under the Investment Company Act of 1940 as a diversified, closed-end investment company. The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements: 1. Security Valuation Investments in securities traded on a national securities exchange are valued at market using the last reported sales price. Securities traded in the over-the-counter market and listed securities for which no sales were reported are valued at the mean between closing reported bid and asked prices. Where no closing prices are available, value is determined by management, with the approval of the Board of Directors. 2. Securities Transactions and Related Investment Income Security transactions are accounted for on the trade date (date the order to buy or sell is executed) with gain or loss on the sale of securities being determined based upon identified cost. Dividend income is recorded on the ex-dividend date and interest income is recorded on the accrual basis. 3. Federal Income Taxes It is the policy of the Fund to distribute substantially all of its taxable income within the prescribed time and to otherwise comply with the provisions of the Internal Revenue Code applicable to regulated investment companies. Therefore, no provision for federal income taxes is believed necessary. 4. Dividends and Distributions to Shareholders The liability for dividends and distributions payable is recorded on the ex-dividend date. (B) The management fee is paid to Davis/Dinsmore Management Company, investment adviser. The contract provides for payment of a monthly advisory fee, computed at an annual rate of 3/4% of 1% of the first $100,000,000 and 1/2 of 1% of the excess over $100,000,000 of the Fund's net asset value in such month. The annual fee is subject to reduction to the extent that the ordinary expenses of the Fund (excluding taxes and interest) exceed 1.5% of the first $100,000,000 of the average of the monthly net asset values of the Fund for the year. The adviser's organization furnishes investment advice, office equipment and facilities, and pays the salaries of all executive officers of the Fund, except that the costs associated with personnel and certain non-personnel expenses of the office of the Treasurer up to a maximum of $25,000 a year are reimbursed by the Fund. Such reimbursements amounted to $12,500 for the six months ended March 31, 1996. The officers of the Fund are directors, officers or employees of the investment adviser. (C) At March 31, 1996, 6,643,517 shares of $.01 par value common stock (20,000,000 shares authorized) were outstanding. During the six months ended March 31, 1996, 159,598 shares were issued in connection with reinvestment of dividends from net investment income and capital gains, resulting in an increase in paid-in capital of $1,466,314. (D) Purchases and sales of investments aggregated $15,211,190 and $17,723,409, respectively, for the six months ended March 31, 1996, exclusive of short-term notes. (E) A distribution of $.12 per share from net investment income was declared April 18, 1996, payable May 28, 1996, to shareholders of record at the close of business May 13, 1996. 7 PRINCIPAL PORTFOLIO CHANGES January 1, 1996 to March 31, 1996
SHARES OR PRINCIPAL AMOUNT -------------------------------- HELD AT ADDITIONS REDUCTIONS 3-31-96 --------- ---------- ------- Bindley Western Industries, Inc. 6 1/2% 2002 cv. sub. deb .. 1,350,000 -- Boatmens Bancshares, Inc. depositary shares (representing 7% cum cv. A pfd.) ............................. 20,500 32,500 Browning-Ferris Industries, Inc. 7 1/4% 1998 notes ......... 25,000 -- Conner Peripherals, Inc. 6 1/2% 2002 cv. sub. deb .......... 850,000 850,000 Conner Peripherals, Inc. 6 3/4% 2001 cv. sub. deb .......... 1,250,000 1,250,000 HFS, Inc. 4 3/4% 2003 cv. senior notes ..................... 250,000 250,000 Kaman Corp. depositary shares (representing 6 1/2% cv. pfd.) 10,040 -- Marriott International, Inc. 0% 2011 liquid yield option notes 875,000 875,000 Mercury Air Group, Inc. 7 3/4% 2006 cv. sub. deb ........... 500,000 500,000 Pioneer Financial Services, Inc. 6 1/2% 2003 cv. sub. notes 500,000 500,000 Quantum Corp. 5% 2003 cv. sub. notes* ........................ 500,000 500,000 Sandoz Capital BVI Ltd. 2% 2002 cv. sub. notes* .............. 500,000 1,050,000 500,000 Sanifill, Inc. 5% 2006 cv. sub. deb .......................... 750,000 750,000 Seagate Technology, Inc. 6 3/4% 2012 cv. sub. deb .......... 1,295,000 -- Starbucks Corp. 4 1/4% 2002 cv. sub. deb ................... 500,000 -- Thermo Electron Corp. 4 1/4% 2003 cv. sub. deb.* ........... 800,000 925,000 Thermo Electron Corp. 5% 2001 cv. sub. deb.* ................. 500,000 275,000 Time Warner, Inc. 8 1/4% 2015 cv. sub. deb ................. 853,050 -- Triathlon Broadcasting Co. depositary shares (representing 9% mandatory cv. pfd.) ......................... 50,000 50,000 Wang Laboratories, Inc. depositary shares (representing 6 1/2% cum cv. B pfd.)* ...................... 7,500 7,500
* Rule 144A security. - -------------------------------------------------------------------------------- The results of the shareholder vote at the Annual Meeting of Shareholders held on January 18, 1996, were: 1. The nominated directors were elected.
Votes for Votes withheld --------- -------------- Ronald E. Dinsmore 5,478,821 138,637 Thomas H. Dinsmore 5,474,109 143,349 Donald M. Halsted, Jr. 5,484,177 133,281 Jane D. O'Keefe 5,478,430 139,028
2. The selection of Coopers & Lybrand as independent accountants was ratified with 5,480,783 votes for, 53,072 against, and 83,003 abstaining. 3. The amendment to the Articles of Incorporation to require the Board of Directors to consider giving shareholders the right to tender their shares was disapproved with 727,361 votes for, 2,066,069 against and 214,366 abstaining. - -------------------------------------------------------------------------------- Pursuant to Section 23 of the Investment Company Act of 1940, notice is hereby given that the Fund may in the future purchase shares of Ellsworth Convertible Growth and Income Fund, Inc. Common Stock from time to time, at such times, and in such amounts, as may be deemed advantageous to the Fund. Nothing herein shall be considered a commitment to purchase such shares. 8 DIRECTORS GORDON F. AHALT WILLIAM A. BENTON ELLSWORTH ELIZABETH C. BOGAN CONVERTIBLE 2 GROWTH AND RONALD E. DINSMORE INCOME FUND* THOMAS H. DINSMORE, C.F.A. DONALD M. HALSTED, JR. GEORGE R. LIEBERMAN JANE D. O'KEEFFE DIRECTOR EMERITUS DUNCAN O. MCKEE OFFICERS RONALD E. DINSMORE Chairman of the Board THOMAS H. DINSMORE President JANE D. O'KEEFFE Executive Vice President SIGMUND LEVINE Senior Vice President and Secretary H. TUCKER LAKE Vice President, Trading GARY I. LEVINE Treasurer and Assistant Secretary [FPO GRAPHIC] INVESTMENT ADVISER Davis/Dinsmore Management Company 65 Madison Ave., Morristown, NJ 07960-7308 (201) 631-1177 SHAREHOLDER SERVICES AND TRANSFER AGENT The Bank of New York Shareholder Relations Department-11E P.O. Box 11258, Church Street Station New York, NY 10286-1258 (800) 524-4458 COMMON STOCK LISTING American Stock Exchange Symbol: ECF 1996 SEMI-ANNUAL REPORT MARCH 31, 1996 [Recycle Logo] Printed on recycled paper -----END PRIVACY-ENHANCED MESSAGE-----