N-CSRS 1 d411273dncsrs.htm BANCROFT FUND LTD. Bancroft Fund Ltd.

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT

INVESTMENT COMPANIES

Investment Company Act file number             811-02151                    

            Bancroft Fund Ltd.            

(Exact name of registrant as specified in charter)

One Corporate Center

                         Rye, New York 10580-1422                        

(Address of principal executive offices) (Zip code)

Jane D. O’Keeffe

Gabelli Funds, LLC

One Corporate Center

                          Rye, New York 10580-1422                        

(Name and address of agent for service)

Registrant’s telephone number, including area code: 1-800-422-3554

Date of fiscal year end:   October 31

Date of reporting period:   April 30, 2017

Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

 

Item 1. Reports to Stockholders.

The Report to Shareholders is attached herewith.

 

Bancroft Fund Ltd.

Semiannual Report — April 30, 2017

(Y)our Portfolio Management Team

 

LOGO

To Our Shareholders,

For the six months ended April 30, 2017, the net asset value (“NAV”) total return of the Bancroft Fund was 9.9%, compared with total returns of 10.5% and 7.2% for the Bank of America Merrill Lynch U.S. Convertibles Index and the Bloomberg Barclays Balanced U.S. Convertibles Index, respectively. The total return for the Fund’s publicly traded shares was 6.2%. The Fund’s NAV per share was $23.39, while the price of the publicly traded shares closed at $21.30 on the NYSE MKT. See below for additional performance information.

Enclosed are the financial statements, including the schedule of investments, as of April 30, 2017.

Comparative Results

Average Annual Returns through April 30, 2017 (a)(b) (Unaudited)

    

Six Months

  

1 Year

  

3 Year

  

5 Year

  

10 Year

  

Since
Inception
(04/20/71)

Bancroft Fund Ltd.

                         

NAV Total Return (d)

        9.88 %       15.25 %       6.03 %       9.11 %       5.59 %(c)       8.84 %(c)

Investment Total Return (e)

        6.23       24.04       9.29       10.75       6.21       9.52

Bank of America Merrill Lynch U.S. Convertibles Index

        10.53       17.71       6.18       10.48       6.60       N/A (f)

Bloomberg Barclays Balanced U.S. Convertibles Index

        7.19       11.34       2.95       7.11       4.57       N/A (g)

Standard & Poor’s (“S&P”) 500 Index

        13.32       17.92       10.47       13.68       7.15       10.30 (h)
  (a)

Returns represent past performance and do not guarantee future results. Investment returns and the principal value of an investment will fluctuate. When shares are sold, they may be worth more or less than their original cost. Current performance may be lower or higher than the performance data presented. Visit www.gabelli.com for performance information as of the most recent month end. Performance returns for periods of less than one year are not annualized. NAV returns would have been lower had Gabelli Funds, LLC (the “Adviser”) not reimbursed certain expenses of the Fund. Investors should carefully consider the investment objectives, risks, charges, and expenses of the Fund before investing. The Bank of America Merrill Lynch U.S. Convertibles Index is a market value weighted index of all dollar denominated convertible securities that are exchangeable into U.S. equities that have a market value of more than $50 million. The Bloomberg Barclays Balanced U.S. Convertibles Index is a market value weighted index that tracks the performance of publicly placed, dollar denominated convertible securities that are between 40% and 80% sensitive to movements in their underlying common stocks. The S&P 500 Index is an unmanaged indicator of stock market performance. Dividends and interest income are considered reinvested. You cannot invest directly in an index.

 
  (b)

The Fund’s fiscal year ends on October 31.

 
  (c)

Total returns and average annual returns have not been adjusted for the 2008 tender offer.

 
  (d)

Total returns and average annual returns reflect changes in the NAV per share, reinvestment of distributions at NAV on the ex-dividend date for the period beginning November 2015, and are net of expenses. For the period December 2008 through October 2015, distributions were reinvested on the payable date using market prices. For the period May 2006 through November 2008, distributions were reinvested on payable date using NAV. Total returns and average annual returns were adjusted for the 1988 rights offering (no adjustments were made for the 1989, 2003, and 2008 rights offerings). Since inception return is based on an initial NAV of $22.92.

 
  (e)

Total returns and average annual returns reflect changes in closing market values on the NYSE MKT and reinvestment of distributions. Total returns and average annual returns were adjusted for the 1988 rights offering (no adjustments were made for the 1989, 2003, and 2008 rights offerings). Since inception return is based on an initial offering price of $25.00.

 
  (f)

The Bank of America Merrill Lynch U.S. Convertibles Index inception date is December 31, 1994.

 
  (g)

The Bloomberg Barclays Balanced U.S. Convertibles Index inception date is January 1, 2003.

 
  (h)

From April 30, 1971, the date closest to the Fund’s inception for which data are available.

 

Summary of Portfolio Holdings (Unaudited)

The following table presents portfolio holdings as a percent of total investments as of April 30, 2017:

Bancroft Fund Ltd.

Health Care

      16.8 % 

Computer Software and Services

      15.1 % 

Financial Services

      11.8 % 

Semiconductors

      11.6 % 

Energy and Utilities

      10.5 % 

Communications Equipment

      5.5 % 

Real Estate Investment Trusts

      4.7 % 

Business Services

      3.7 % 

Diversified Industrial

      3.1 % 

Consumer Services

      2.5 % 

Cable and Satellite

      2.0 % 

Entertainment

      2.0 % 

 

Telecommunications

      1.8 % 

Aerospace

      1.5 % 

Transportation

      1.5 % 

Wireless Communications

      1.5 % 

Consumer Products

      1.2 % 

Agriculture

      1.1 % 

Metals and Mining

      0.8 % 

Automotive

      0.7 % 

Food and Beverage

      0.6 % 
  

 

 

  
         100.0 % 
  

 

 

  

 

 

The Fund files a complete schedule of portfolio holdings with the Securities and Exchange Commission (the “SEC”) for the first and third quarters of each fiscal year on Form N-Q. Shareholders may obtain this information at www.gabelli.com or by calling the Fund at 800-GABELLI (800-422-3554).The Fund’s Form N-Q is available on the SEC’s website at www.sec.gov and may also be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 800-SEC-0330.

Proxy Voting

The Fund files Form N-PX with its complete proxy voting record for the twelve months ended June 30, no later than August 31 of each year. A description of the Fund’s proxy voting policies, procedures, and how the Fund voted proxies relating to portfolio securities is available without charge, upon request, by (i) calling 800-GABELLI (800-422-3554); (ii) writing to The Gabelli Funds at One Corporate Center, Rye, NY 10580-1422; or (iii) visiting the SEC’s website at www.sec.gov.

Certifications

The Fund’s Chief Executive Officer has certified to the NYSE MKT that, as of June 12, 2017, she was not aware of any violation by the Fund of applicable NYSE corporate governance listing standards. The Fund reports to the SEC on Form N-CSR which contains certifications by the Fund’s principal executive officer and principal financial officer that relate to the Fund’s disclosure in such reports and that are required by Rule 30a-2(a) under the 1940 Act.

 

2

Bancroft Fund Ltd.

Schedule of Investments — April 30, 2017 (Unaudited)

 

 

Principal
Amount

          

Cost

     

Market
Value

  
  

CONVERTIBLE CORPORATE BONDS — 74.8%

 

  

Aerospace — 1.5%

 

$   2,000,000     

Aerojet Rocketdyne Holdings Inc.,

      
  

2.250%, 12/15/23(a)

    $   2,056,540      $   2,212,500  
     

 

 

     

 

 

  
  

Automotive — 0.7%

 

  1,000,000     

Tesla Inc.,

      
  

1.250%, 03/01/21

      893,476        1,041,250  
     

 

 

     

 

 

  
  

Business Services — 3.3%

 

  2,000,000     

Blucora Inc.,

      
  

4.250%, 04/01/19

      1,976,969        2,016,250  
  2,084,000     

Macquarie Infrastructure Corp.,

      
  

2.000%, 10/01/23

      2,101,414        2,068,370  
  760,000     

Square Inc.,

      
  

0.375%, 03/01/22(a)

      769,288        807,500  
     

 

 

     

 

 

  
        4,847,671        4,892,120  
     

 

 

     

 

 

  
  

Cable and Satellite — 2.0%

 

  2,500,000     

DISH Network Corp.,

      
  

3.375%, 08/15/26(a)

      2,590,030        3,071,875  
     

 

 

     

 

 

  
  

Communications Equipment — 5.5%

 

  2,000,000     

Harmonic Inc.,

      
  

4.000%, 12/01/20

      2,066,704        2,460,000  
  1,000,000     

Infinera Corp.,

      
  

1.750%, 06/01/18

      1,019,968        1,060,625  
  2,000,000     

InterDigital, Inc.,

      
  

1.500%, 03/01/20

      2,061,876        2,700,000  
  1,959,000     

Lumentum Holdings Inc.,

      
  

0.250%, 03/15/24(a)

      2,008,342        1,961,449  
     

 

 

     

 

 

  
        7,156,890        8,182,074  
     

 

 

     

 

 

  
  

Computer Software and Services — 14.4%

 

  2,500,000     

CSG Systems International Inc.,

      
  

4.250%, 03/15/36

      2,606,951        2,603,125  
  1,500,000     

EnerNOC Inc.,

      
  

2.250%, 08/15/19

      1,203,131        1,333,125  
  2,000,000     

MercadoLibre Inc.,

      
  

2.250%, 07/01/19

      2,336,365        3,731,250  
  1,548,000     

Nice Systems Inc.,

      
  

1.250%, 01/15/24(a)

      1,627,990        1,607,985  
  1,500,000     

Nuance Communications Inc.,

      
  

1.000%, 12/15/35

      1,331,354        1,456,875  
  2,000,000     

Proofpoint Inc.,

      
  

0.750%, 06/15/20

      2,155,088        2,293,750  
  1,000,000     

PROS Holdings Inc.,

      
  

2.000%, 12/01/19

      1,019,907        1,025,625  
  725,000     

Red Hat Inc.,

      
  

0.250%, 10/01/19

      725,000        956,547  
  2,000,000     

Synchronoss Technologies Inc.,

      
  

0.750%, 08/15/19

      2,036,357        1,715,000  
  1,500,000     

The Priceline Group Inc.,

      
  

1.000%, 03/15/18

      1,552,089        2,930,625  

Principal
Amount

          

Cost

     

Market
Value

  
$   2,000,000     

Web.com Group Inc.,

      
  

1.000%, 08/15/18

    $ 1,974,533      $ 1,958,750  
     

 

 

     

 

 

  
        18,568,765        21,612,657  
     

 

 

     

 

 

  
  

Consumer Products — 1.2%

 

  1,313,000     

GoPro Inc.,

      
  

3.500%, 04/15/22

      1,313,000        1,216,987  
  616,000     

JAKKS Pacific Inc.,

      
  

4.875%, 06/01/20(a)

      655,264        550,935  
     

 

 

     

 

 

  
        1,968,264        1,767,922  
     

 

 

     

 

 

  
  

Consumer Services — 2.5%

 

  1,250,000     

Carriage Services Inc.,

      
  

2.750%, 03/15/21

      1,305,728        1,645,313  
  2,000,000     

Extra Space Storage LP,

      
  

3.125%, 10/01/35(a)

      2,062,252        2,091,250  
     

 

 

     

 

 

  
        3,367,980        3,736,563  
     

 

 

     

 

 

  
  

Diversified Industrial — 2.0%

 

  1,000,000     

Kaman Corp.,

      
  

3.250%, 11/15/17(a)

      1,046,542        1,441,875  
  1,000,000     

TimkenSteel Corp.,

      
  

6.000%, 06/01/21

      1,039,877        1,506,250  
     

 

 

     

 

 

  
        2,086,419        2,948,125  
     

 

 

     

 

 

  
  

Energy and Utilities — 5.3%

 

  2,000,000     

Cheniere Energy Inc.,

      
  

4.250%, 03/15/45

      1,282,579        1,370,000  
  1,500,000     

Chesapeake Energy Corp.,

      
  

5.500%, 09/15/26(a)

      1,509,495        1,483,125  
  750,000     

Clean Energy Fuels Corp.,

      
  

5.250%, 10/01/18(a)

      699,227        740,625  
  259,000     

Goodrich Petroleum Escrow Bond, Zero Coupon,

      
  

12/31/21†(a)(b)(c)

      0        0  
  667,000     

Newpark Resources Inc.,

      
  

4.000%, 12/01/21(a)

      716,946        736,201  
  3,000,000     

SunPower Corp.,

      
  

4.000%, 01/15/23

      2,348,540        2,420,625  
  1,000,000     

Weatherford International Ltd.,

      
  

5.875%, 07/01/21

      1,067,379        1,191,250  
     

 

 

     

 

 

  
        7,624,166        7,941,826  
     

 

 

     

 

 

  
  

Entertainment — 2.0%

 

  1,625,000     

Global Eagle Entertainment Inc.,

      
  

2.750%, 02/15/35

      1,352,308        1,060,313  
  1,750,000     

World Wrestling Entertainment Inc.,

      
  

3.375%, 12/15/23(a)

      1,777,916        1,904,219  
     

 

 

     

 

 

  
        3,130,224        2,964,532  
     

 

 

     

 

 

  
  

Financial Services — 3.2%

 

  1,000,000     

Blackhawk Network Holdings Inc.,

      
  

1.500%, 01/15/22(a)

      1,017,648        1,088,750  
 

 

See accompanying notes to financial statements.

 

3

Bancroft Fund Ltd.

Schedule of Investments (Continued) — April 30, 2017 (Unaudited)

 

 

Principal

Amount

          

Cost

     

Market

Value

  
  

CONVERTIBLE CORPORATE BONDS (Continued)

 

  

Financial Services (Continued)

 

$  2,000,000     

BlackRock Capital Investment Corp.,

      
  

5.500%, 02/15/18

    $ 2,024,634      $ 2,065,000  
  

Encore Capital Group Inc.,

      
  1,250,000     

3.000%, 07/01/20

      1,043,356        1,216,406  
  431,000     

3.250%, 03/15/22(a)

      431,000        412,413  
     

 

 

     

 

 

  
        4,516,638        4,782,569  
     

 

 

     

 

 

  
  

Health Care — 14.5%

 

  750,000     

Amicus Therapeutics Inc.,

      
  

3.000%, 12/15/23(a)

      750,000        1,076,719  
  1,000,000     

ANI Pharmaceuticals Inc.,

      
  

3.000%, 12/01/19

      1,087,267        1,098,125  
  750,000     

Array BioPharma Inc.,

      
  

3.000%, 06/01/20

      655,818        1,045,313  
  750,000     

Horizon Pharma Investment Ltd.,

      
  

2.500%, 03/15/22

      793,843        703,594  
  1,834,000     

Intercept Pharmaceuticals Inc.,

      
  

3.250%, 07/01/23

      1,880,704        1,719,375  
  1,500,000     

Ironwood Pharmaceuticals Inc.,

      
  

2.250%, 06/15/22

      1,680,568        1,826,250  
  500,000     

Jazz Investments I Ltd.,

      
  

1.875%, 08/15/21

      544,487        556,250  
  1,750,000     

Molina Healthcare Inc.,

      
  

1.625%, 08/15/44

      1,962,527        1,920,625  
  1,384,000     

Neurocrine Biosciences Inc.,

      
  

2.250%, 05/15/24

      1,443,642        1,439,360  
  1,000,000     

NuVasive Inc.,

      
  

2.250%, 03/15/21

      1,067,088        1,335,625  
  1,000,000     

Pacira Pharmaceuticals Inc.,

      
  

2.375%, 04/01/22(a)

      1,043,929        1,067,500  
  1,250,000     

Quidel Corp.,

      
  

3.250%, 12/15/20

      1,270,055        1,317,969  
  1,000,000     

Sucampo Pharmaceuticals Inc.,

      
  

3.250%, 12/15/21(a)

      1,000,000        967,500  
  1,000,000     

Teligent Inc.,

      
  

3.750%, 12/15/19

      1,002,336        1,011,875  
  1,500,000     

The Medicines Co.,

      
  

2.750%, 07/15/23(a)

      1,661,957        1,828,125  
  1,000,000     

Theravance Biopharma Inc.,

      
  

3.250%, 11/01/23

      1,000,000        1,371,250  
  1,750,000     

Vitamin Shoppe Inc.,

      
  

2.250%, 12/01/20

      1,719,785        1,509,375  
     

 

 

     

 

 

  
        20,564,006        21,794,830  
     

 

 

     

 

 

  
  

Metals and Mining — 0.8%

 

  600,000     

Royal Gold Inc.,

      
  

2.875%, 06/15/19

      594,868        640,875  

Principal

Amount

          

Cost

     

Market

Value

  
$ 500,000     

RTI International Metals Inc.,

      
  

1.625%, 10/15/19

    $ 502,436      $ 595,937  
     

 

 

     

 

 

  
        1,097,304        1,236,812  
     

 

 

     

 

 

  
  

Real Estate Investment Trusts — 2.0%

 

  1,000,000     

Colony NorthStar Inc.,

      
  

5.000%, 04/15/23

      1,029,031        1,027,500  
  2,000,000     

IAS Operating Partnership LP,

      
  

5.000%, 03/15/18(a)

      1,996,991        2,032,500  
     

 

 

     

 

 

  
        3,026,022        3,060,000  
     

 

 

     

 

 

  
  

Semiconductors — 11.6%

 

  800,000     

Advanced Micro Devices Inc.,

      
  

2.125%, 09/01/26

      846,244        1,475,000  
  2,000,000     

Cypress Semiconductor Corp.,

      
  

4.500%, 01/15/22(a)

      2,150,555        2,471,250  
  2,000,000     

Inphi Corp.,

      
  

1.125%, 12/01/20

      2,228,034        2,487,500  
  2,000,000     

Knowles Corp.,

      
  

3.250%, 11/01/21

      2,069,972        2,423,750  
  1,000,000     

Microchip Technology Inc.,

      
  

1.625%, 02/15/27(a)

      997,837        1,028,750  
  1,500,000     

Micron Technology Inc.,

      
  

3.000%, 11/15/43

      1,368,891        1,627,500  
  2,000,000     

NXP Semiconductors NV,

      
  

1.000%, 12/01/19

      2,174,322        2,341,250  
  1,215,000     

Silicon Laboratories Inc.,

      
  

1.375%, 03/01/22(a)

      1,272,354        1,281,065  
  1,750,000     

Teradyne Inc.,

      
  

1.250%, 12/15/23(a)

      1,858,256        2,198,437  
     

 

 

     

 

 

  
        14,966,465        17,334,502  
     

 

 

     

 

 

  
  

Telecommunications — 0.8%

 

  1,000,000     

Dycom Industries Inc.,

      
  

0.750%, 09/15/21

      1,003,204        1,268,125  
     

 

 

     

 

 

  
  

Transportation — 1.5%

 

  2,000,000     

Atlas Air Worldwide Holdings Inc.,

      
  

2.250%, 06/01/22

      1,946,368        2,196,250  
     

 

 

     

 

 

  
  

TOTAL CONVERTIBLE CORPORATE BONDS

      101,410,432        112,044,532  
     

 

 

     

 

 

  

Shares

                     
  

CONVERTIBLE PREFERRED STOCKS — 7.7%

 

  

Agriculture — 1.1%

 

  15,000     

Bunge Ltd., 4.875%

      1,442,530        1,611,000  
     

 

 

     

 

 

  
  

Business Services — 0.4%

 

  711,039     

Amerivon Holdings LLC, 4.000%

      1,427,412        585,896  
  272,728     

Amerivon Holdings LLC, common equity units,

      0        16,363  
     

 

 

     

 

 

  
        1,427,412        602,259  
     

 

 

     

 

 

  
 

 

See accompanying notes to financial statements.

 

4

Bancroft Fund Ltd.

Schedule of Investments (Continued) — April 30, 2017 (Unaudited)

 

 

Shares

          

Cost

     

Market

Value

  
  

CONVERTIBLE PREFERRED STOCKS (Continued)

 

  

Financial Services — 4.5%

 

  2,000     

Bank of America Corp., 7.250%

    $ 1,972,540      $ 2,426,840  
  1,250     

Huntington Bancshares, Inc., 8.500%

      1,552,500        1,738,437  
  2,000     

Wells Fargo & Co., 7.500%

      1,679,238        2,540,000  
     

 

 

     

 

 

  
        5,204,278        6,705,277  
     

 

 

     

 

 

  
  

Food and Beverage — 0.6%

 

  5,000     

Post Holdings Inc., 3.750%

      522,102        903,750  
     

 

 

     

 

 

  
  

Real Estate Investment Trusts — 1.1%

 

  26,500     

Welltower Inc., 6.500%

      1,483,460        1,675,065  
     

 

 

     

 

 

  
  

TOTAL CONVERTIBLE PREFERRED STOCKS

      10,079,782        11,497,351  
     

 

 

     

 

 

  
  

MANDATORY CONVERTIBLE SECURITIES (d) — 17.5%

 

  

Computer Software and Services — 0.7%

 

  10,000     

MTS Systems Corp.,

      
  

8.750%, 07/01/19

      1,048,578        1,090,500  
     

 

 

     

 

 

  
  

Diversified Industrial — 1.1%

 

  30,100     

Rexnord Corp.,

      
  

5.750%, 11/15/19

      1,549,480        1,696,135  
     

 

 

     

 

 

  
  

Energy and Utilities — 5.2%

 

  20,000     

Anadarko Petroleum Corp.,

      
  

7.500%, 06/07/18

      783,094        918,200  
  40,000     

Dominion Resources, Inc.,

      
  

6.750%, 08/15/19

      1,984,893        2,024,800  
  18,600     

DTE Energy Co.,

      
  

6.500%, 10/01/19

      960,300        1,002,354  
  29,666     

Hess Corp.,

      
  

8.000%, 02/01/19

      1,779,424        1,769,577  
  

NextEra Energy Inc.,

      
  25,000     

6.371%, 09/01/18

      1,246,875        1,541,750  
  10,000     

6.123%, 09/01/19

      498,630        524,000  
     

 

 

     

 

 

  
        7,253,216        7,780,681  
     

 

 

     

 

 

  
  

Financial Services — 4.1%

 

  30,000     

Alibaba - Mandatory Exchange Trust,

      
  

5.750%, 06/03/19 (a)

      3,225,000        4,128,450  
  40,000     

New York Community Capital Trust V,

      
  

6.000%, 11/01/51

      1,798,573        2,002,000  
     

 

 

     

 

 

  
        5,023,573        6,130,450  
     

 

 

     

 

 

  
  

Health Care — 2.3%

 

  1,200     

Allergan plc,

      
  

5.500%, 03/01/18

      1,093,494        1,038,936  

Shares

          

Cost

     

Market

Value

  
  16,500     

Envision Healthcare Corp.,

      
  

5.250%, 07/01/17

    $ 1,789,607      $ 1,765,170  
  1,000     

Teva Pharmaceutical Industries Ltd.,

      
  

7.000%, 12/15/18

      902,921        571,000  
     

 

 

     

 

 

  
        3,786,022        3,375,106  
     

 

 

     

 

 

  
  

Real Estate Investment Trusts — 1.6%

 

  20,000     

American Tower Corp.,

      
  

5.500%, 02/15/18

      2,011,250        2,315,000  
     

 

 

     

 

 

  
  

Telecommunications — 1.0%

 

  35,000     

Frontier Communications Corp.,

      
  

11.125%, 06/29/18

      3,084,529        1,551,900  
     

 

 

     

 

 

  
  

Wireless Communications — 1.5%

 

  20,000     

T-Mobile US Inc.,

      
  

5.500%, 12/15/17

      1,113,947        2,194,400  
     

 

 

     

 

 

  
  

TOTAL MANDATORY CONVERTIBLE SECURITIES

      24,870,595        26,134,172  
     

 

 

     

 

 

  
  

COMMON STOCKS — 0.0%

 

  

Energy and Utilities — 0.0%

 

  92     

Goodrich Petroleum Corp.†

      925        1,242  
     

 

 

     

 

 

  
  

WARRANTS — 0.0%

 

  

Energy and Utilities — 0.0%

 

  784     

Goodrich Petroleum Corp., expire 10/12/26†

      0        0  
     

 

 

     

 

 

  
 

TOTAL INVESTMENTS — 100.0%

    $ 136,361,734        149,677,297  
     

 

 

     
 

Other Assets and Liabilities (Net)

        3,126,369  
 

PREFERRED STOCK

     
 

  (1,200,000 preferred shares outstanding)

        (30,000,000 ) 
        

 

 

  
 

NET ASSETS — COMMON STOCK

      
 

  (5,249,900 common shares outstanding)

       $ 122,803,666  
        

 

 

  
 

NET ASSET VALUE PER COMMON SHARE

     
 

  ($122,803,666 ÷ 5,249,900 shares outstanding)

      $ 23.39  
        

 

 

  

 

(a)

Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At April 30, 2017, the market value of Rule 144A securities amounted to $38,190,998 or 25.52% of total investments

 

 

See accompanying notes to financial statements.

 

5

Bancroft Fund Ltd.

Schedule of Investments (Continued) — April 30, 2017 (Unaudited)

 

 

(b)

At April 30, 2017, the Fund held an investment in a restricted and illiquid security amounting to $0 or 0.0% of total investments, which was valued under methods approved by the Board of Trustees as follows:

 

Acquisition
Principal
Amount

   

Issuer

    Acquisition
Date		    Acquisition
Cost		    04/30/17
Carrying
Value
Per Bond
$259,000   

Goodrich Petroleum Escrow Bond, 0.0%, 12/31/21

   

12/14/16

    $0   

$0.0000

 

(c)

Security in default.

(d)

Mandatory convertible securities are required to be converted on the dates listed; they generally may be converted prior to these dates at the option of the holder.

†

Non-income producing security.

 

 

See accompanying notes to financial statements.

 

6

Bancroft Fund Ltd.

 

Statement of Assets and Liabilities

April 30, 2017 (Unaudited)

 

 

Assets:

   

Investments, at value (cost $136,361,734)

    $ 149,677,297  

Cash

      2,051,062  

Receivable for investments sold

      2,927,317  

Dividends and interest receivable

      860,695  

Deferred offering expense

      61,565  

Prepaid expenses

      1,812  
  

 

 

  

Total Assets

      155,579,748  
  

 

 

  

Liabilities:

   

Distributions payable

      143,333  

Payable for investments purchased

      2,503,097  

Payable for investment advisory fees

      89,225  

Payable for payroll expenses

      14,692  

Payable for accounting fees

      3,750  

Other accrued expenses

      21,985  
  

 

 

  

Total Liabilities

      2,776,082  
  

 

 

  

Preferred Shares:

   

Series A Cumulative Preferred Shares (5.375%, $25 liquidation value, $0.01 par value, unlimited shares authorized with 1,200,000 shares issued and outstanding)

      30,000,000  
  

 

 

  

Net Assets Attributable to Common Shareholders

   

(applicable to 5,249,900 shares outstanding)

    $ 122,803,666  
  

 

 

  

Net Assets Attributable to Common Shareholders Consist of:

   

Paid-in capital

    $ 107,503,468  

Accumulated net investment loss

      (6,214,012 ) 

Accumulated net realized gain on investments

      8,198,647  

Net unrealized appreciation on investments

      13,315,563  
  

 

 

  

Net Assets

    $ 122,803,666  
  

 

 

  

Net Asset Value per Common Share:

   

($122,803,666 ÷ 5,249,900 shares outstanding at $0.01 par value; unlimited number of shares authorized)

      $23.39  

Statement of Operations

For the Six Months Ended April 30, 2017 (Unaudited)

 

 

Investment Income:

   

Dividends (net of foreign withholding taxes of $5,250)

    $ 1,194,482  

Interest

      947,644  
  

 

 

  

Total Investment Income

      2,142,126  
  

 

 

  

Expenses:

   

Investment advisory fees

      531,710  

Trustees’ fees

      62,245  

Shareholder communications expenses

      33,164  

Payroll expenses

      28,254  

Accounting fees

      22,500  

Legal and audit fees

      17,431  

Shareholder services fees

      10,692  

Custodian fees

      5,976  

Miscellaneous expenses

      19,898  
  

 

 

  

Total Expenses

      731,870  
  

 

 

  

Less:

   

Expenses paid indirectly by broker (See Note 3)

      (973 ) 
  

 

 

  

Net Expenses

      730,897  
  

 

 

  

Net Investment Income

      1,411,229  
  

 

 

  

Net Realized and Unrealized Gain on Investments:

   

Net realized gain on investments

      5,939,090  
  

 

 

  

Net change in unrealized appreciation on investments

      4,853,081  
  

 

 

  

Net Realized and Unrealized Gain on Investments

      10,792,171  
  

 

 

  

Net Increase in Net Assets Resulting from Operations

      12,203,400  
  

 

 

  

Total Distributions to Preferred Stock Shareholders

      (788,333 ) 
  

 

 

  

Net Increase in Net Assets Attributable to Common Shareholders Resulting from Operations

    $ 11,415,067  
  

 

 

  
 

 

See accompanying notes to financial statements.

 

7

Bancroft Fund Ltd.

Statement of Changes in Net Assets Attributable to Common Shareholders

 

 

 

     Six Months Ended
April 30, 2017
(Unaudited)		   Year Ended
October 31, 2016

Operations:

         

Net investment income

      $ 1,411,229     $ 2,230,693

Net realized gain on investments

        5,939,090       4,109,102

Net change in unrealized appreciation on investments

        4,853,081       (1,398,347 )
    

 

 

      

 

 

  

Net Increase in Net Assets Resulting from Operations

        12,203,400       4,941,448
    

 

 

      

 

 

  

Distributions to Preferred Shareholders:

         

Net investment income

        (165,550 )*       (179,284 )

Net long term gain

        (622,783 )*       (192,487 )
    

 

 

      

 

 

  

Total Distributions to Preferred Shareholders.

        (788,333 )       (371,771 )
    

 

 

      

 

 

  

Net Increase in Net Assets Attributable to Common Shareholders

        11,415,067       4,569,677
    

 

 

      

 

 

  

Distributions to Common Shareholders:

         

Net investment income

        (881,291 )*       (4,407,199 )

Net realized gain

        (3,124,576 )*       (4,731,760 )
    

 

 

      

 

 

  

Total Distributions to Common Shareholders

        (4,005,867 )       (9,138,959 )
    

 

 

      

 

 

  

Fund Share Transactions:

         

Net increase in net assets from common shares issued upon reinvestment of distributions

        1,425,677       2,516,260

Net decrease from repurchase of common shares (includes transaction costs)

        —       (1,251,803 )

Net decrease from costs charged for issuance of preferred shares

        —       (1,090,000 )

Net decrease in net assets from preferred offering cost charged to capital

        (71,461 )       —
    

 

 

      

 

 

  

Net Increase in Net Assets from Fund Share Transactions

        1,354,216       174,457
    

 

 

      

 

 

  

Net Increase/(Decrease) in Net Assets Attributable to Common Shareholders

        8,763,416       (4,394,825 )

Net Assets Attributable to Common Shareholders:

         

Beginning of year

        114,040,250       118,435,075
    

 

 

      

 

 

  

End of period (including undistributed net investment income of $0 and $0, respectively)

      $ 122,803,666     $ 114,040,250
    

 

 

      

 

 

  

 

*

Based on year to date book income. Amounts are subject to change and recharacterization at year end.

 

See accompanying notes to financial statements.

 

8

Bancroft Fund Ltd.

Financial Highlights

 

 

Selected data for a common share of beneficial interest outstanding throughout each period:

 

   

Six Months Ended

April 30, 2017

     Year Ended October 31,  
    (Unaudited)     2016     2015     2014     2013     2012  

Operating Performance:

                        

Net asset value, beginning of year

                        $22.02       $ 23.19       $ 23.59       $ 22.13       $ 19.15       $ 18.48  
   

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Net investment income

       0.29         0.44         0.17         0.19         0.25         0.48  

Net realized and unrealized gain on investments

       2.01         0.50         0.23         1.74         3.31         0.75  
   

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Total from investment operations

       2.30         0.94         0.40         1.93         3.56         1.23  
   

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Distributions to Preferred Shareholders: (a)

                        

Net investment income

       (0.03 )*        (0.03 )        —         —         —         —  

Net realized gain

       (0.12 )*        (0.04 )        —         —         —         —  
   

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Total distributions to preferred shareholders

       (0.15 )        (0.07 )        —         —         —         —  
   

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Net Increase in Net Assets Attributable to Common Shareholders Resulting from Operations

       2.15         0.87         0.40         1.93         3.56         1.23  
   

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Distributions to Common Shareholders:

                        

Net investment income

       (0.17 )*        (0.85 )        (0.39 )        (0.56 )        (0.56 )        (0.55 ) 

Net realized gains

       (0.60 )*        (0.92 )        (0.51 )        —         —         —  
   

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Total distributions to common shareholders

       (0.77 )        (1.77 )        (0.90 )        (0.56 )        (0.56 )        (0.55 ) 
   

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Fund Share Transactions:

                        

Increase in net asset value from repurchase of common shares

       —         0.04         0.10         0.11         0.00 (b)        —  

Decrease in net asset value from common shares issued upon reinvestment of distributions

       —         (0.10 )        (0.00 )(b)        (0.02 )        (0.02 )        (0.01 ) 

Offering costs for preferred shares charged to paid-in capital

       (0.01 )        (0.21 )        —         —         —         —  
   

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

Total Fund share transactions

       (0.01 )        (0.27 )        0.10         0.09         (0.02 )        (0.01 ) 
   

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Net Asset Value Attributable to Common Shareholders, End of Period

       $23.39       $ 22.02       $ 23.19       $ 23.59       $ 22.13       $ 19.15  
   

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

NAV total return†

       9.88 %        2.85 %        2.71 %        9.71 %        19.35 %        7.20 % 
   

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Market value, end of period

       $21.30       $ 20.81       $ 19.50       $ 20.09       $ 18.42       $ 16.45  
   

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Investment total return††

       6.23 %        17.23 %        1.42 %        12.25 %        15.64 %        7.36 % 
   

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

 

See accompanying notes to financial statements.

 

9

Bancroft Fund Ltd.

Financial Highlights (Continued)

 

 

Selected data for a common share of beneficial interest outstanding throughout each period:

 

    Six Months Ended
April 30, 2017		     Year Ended October 31,  
    (Unaudited)     2016     2015     2014     2013     2012  

Ratios to Average Net Assets and Supplemental Data:

                        

Net assets including liquidation value of preferred shares, end of period (in 000’s)

       $152,804       $ 144,040         —         —         —         —  

Net assets attributable to common shares, end of period (in 000’s)

       $122,804       $ 114,040       $ 118,435       $ 123,667       $ 118,821       $ 102,316  

Ratio of net investment income to average net assets attributable to common shares before preferred shares distributions

       2.38 %(c)        1.98 %        0.80 %        1.00 %        1.20 %        2.60 % 

Ratio of operating expenses to average net assets attributable to common shares

       1.23 %(c)(d)        1.15 %(d)        1.10 %        1.10 %        1.10 %        1.10 % 

Ratio of operating expenses to average net assets including liquidation value of preferred shares

       0.99 %(c)(d)        1.08 %(d)        1.10 %        1.10 %        1.10 %        1.10 % 

Portfolio turnover rate

       18.0 %        50.0 %        48.0 %        43.0 %        51.0 %        44.0 % 

Cumulative Preferred Shares:

                        

5.375% Series A

                        

Liquidation value, end of period (in 000’s)

       $  30,000       $ 30,000         —         —         —         —  

Total shares outstanding (in 000’s)

       1,200         1,200         —         —         —         —  

Liquidation preference per share

       $    25.00       $ 25.00         —         —         —         —  

Average market value (e)

       $    24.54       $ 25.49         —         —         —         —  

Asset coverage per share

       $  127.34       $ 120.03         —         —         —         —  

Asset Coverage

       509 %        480 %        —         —         —         —  

 

†

Based on net asset value per share, adjusted for reinvestment of distributions at prices determined under the Fund’s dividend reinvestment plan. Total return for a period of less than one year is not annualized. Prior to November 1, 2015, reinvestments of distributions were at market prices on the payable date.

††

Based on market value per share, adjusted for reinvestment of distributions at prices obtained under the Fund’s dividend reinvestment plan. Total return for a period of less than one year is not annualized.

*

Based on year to date book income. Amounts are subject to change and recharacterization at year end.

(a)

Calculated based upon average common shares outstanding on the record dates throughout the year.

(b)

Amount represents less than $0.005 per share.

(c)

Annualized.

(d)

The Fund received credits from a designated broker who agreed to pay certain Fund operating expenses. For the six months ended April 30, 2017 and the year ended October 31, 2016, there was no impact on the expense ratios.

(e)

Based on weekly prices.

 

See accompanying notes to financial statements.

 

10

Bancroft Fund Ltd.

Notes to Financial Statements (Unaudited)

 

 

1. Organization. Bancroft Fund Ltd. currently operates as a diversified closed-end management investment company organized as a Delaware statutory trust and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”). Investment operations commenced in April 1971.

The Fund’s primary investment objective is to provide income and the potential for capital appreciation, which 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 invests primarily in convertible and equity securities.

2. Significant Accounting Policies. As an investment company, the Fund follows the investment company accounting and reporting guidance, which is part of U.S. generally accepted accounting principles (“GAAP”) that may require the use of management estimates and assumptions in the preparation of its financial statements. Actual results could differ from those estimates. The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements.

Security Valuation. Portfolio securities listed or traded on a nationally recognized securities exchange or traded in the U.S. over-the-counter market for which market quotations are readily available are valued at the last quoted sale price or a market’s official closing price as of the close of business on the day the securities are being valued. If there were no sales that day, the security is valued at the average of the closing bid and asked prices or, if there were no asked prices quoted on that day, then the security is valued at the closing bid price on that day. If no bid or asked prices are quoted on such day, the security is valued at the most recently available price or, if the Board of Trustees (the “Board”) so determines, by such other method as the Board shall determine in good faith to reflect its fair market value. Portfolio securities traded on more than one national securities exchange or market are valued according to the broadest and most representative market, as determined by Gabelli Funds, LLC (the “Adviser”).

Portfolio securities primarily traded on a foreign market are generally valued at the preceding closing values of such securities on the relevant market, but may be fair valued pursuant to procedures established by the Board if market conditions change significantly after the close of the foreign market, but prior to the close of business on the day the securities are being valued. Debt obligations for which market quotations are readily available are valued at the average of the latest bid and asked prices. If there were no asked prices quoted on such day, the security is valued using the closing bid price. Such debt obligations are valued through prices provided by a pricing service approved by the Board. Certain securities are valued principally using dealer quotations.

Securities and assets for which market quotations are not readily available are fair valued as determined by the Board. Fair valuation methodologies and procedures may include, but are not limited to: analysis and review of available financial and non-financial information about the company; comparisons with the valuation and changes in valuation of similar securities, including a comparison of foreign securities with the equivalent U.S. dollar value American Depositary Receipt securities at the close of the U.S. exchange; and evaluation of any other information that could be indicative of the value of the security.

 

11

Bancroft Fund Ltd.

Notes to Financial Statements (Unaudited) (Continued)

 

 

The inputs and valuation techniques used to measure fair value of the Fund’s investments are summarized into three levels as described in the hierarchy below:

 

  ●  

Level 1 — quoted prices in active markets for identical securities;

  ●  

Level 2 — other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.); and

  ●  

Level 3 — significant unobservable inputs (including the Board’s determinations as to the fair value of investments).

A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input both individually and in the aggregate that is significant to the fair value measurement. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The summary of the Fund’s investments in securities by inputs used to value the Fund’s investments as of April 30, 2017 is as follows:

 

     Valuation Inputs         
     Level 1
Quoted Prices		      Level 2 Other Significant
Observable Inputs		      Level 3 Significant
Unobservable Inputs		      Total Market Value
at 4/30/17		  

INVESTMENTS IN SECURITIES:

            

ASSETS (Market Value):

            

Convertible Corporate Bonds (a)

      —        $112,044,532                —                $112,044,532      

 

  

Convertible Preferred Stocks:

            

Business Services

      —        —                $   602,259                602,259      

Food and Beverage

      —        903,750                —                903,750      

Other Industries (a)

      $  9,991,342        —                —                9,991,342      

 

  

Total Convertible Preferred Stocks

      9,991,342        903,750                602,259                11,497,351      

 

  

Mandatory Convertible Securities:

            

Computer Software and Services

      —        —                1,090,500                1,090,500      

Energy and Utilities

      6,238,931        1,541,750                —                7,780,681      

Financial Services

      —        6,130,450                —                6,130,450      

Health Care

      1,609,936        1,765,170                —                3,375,106      

Other Industries (a)

      7,757,435        —                —                7,757,435      

 

  

Total Mandatory Convertible Securities

      15,606,302        9,437,370                1,090,500                26,134,172      

 

  

Common Stocks (a)

      1,242        —                —                1,242      

Warrants (a)

      —        —                0                0      

 

  

TOTAL INVESTMENTS IN SECURITIES

      $25,598,886        $122,385,652                $1,692,759                $149,677,297      

 

  

 

(a) Please refer to the Schedule of Investments (“SOI”) for the industry classifications of these portfolio holdings.

During the six months ended April 30, 2017, the Fund had transfers from Level 1 to Level 2 of $3,515,350 or 3.08% of net assets as of October 31, 2016 and transfers from Level 2 to Level 3 of $1,120,799 or 0.98% of net assets as of October 31, 2016. Transfers from Level 1 to Level 2 and transfers from Level 2 to Level 3 are due to a decline in market activity, e.g., frequency of trades, which resulted in a lack of available market inputs to determine price. The Fund’s policy is to recognize transfers among Levels as of the beginning of the reporting period.

 

12

Bancroft Fund Ltd.

Notes to Financial Statements (Unaudited) (Continued)

 

 

The following table reconciles Level 3 investments for which significant unobservable inputs were used to determine fair value:

 

      Balance
as of
10/31/16		      Accrued
discounts/
(premiums)		      Realized
gain/
(loss)		      Change in
unrealized
appreciation/
depreciation†		     Purchases      Sales     Transfers
into
Level 3††		      Transfers
out of
Level 3††		      Balance
as of
04/30/17		      Net change
in unrealized
appreciation/
depreciation
during the
period on
Level 3
investments
still held at
04/30/17†		  

INVESTMENTS IN SECURITIES:

                            

ASSETS (Market Value):

                            

Convertible Preferred Stocks:

                            

Business Services

    $ 750,000        —          —              $ (75,153 )      $17,288      $ (89,876 )      —        —        $ 602,259            $ (75,153 ) 

Mandatory Convertible Securities:

                            

Computer Software and Services

      —        —          —          (30,299 )      —        —      $ 1,120,799        —          1,090,500        (30,299 ) 

TOTAL INVESTMENTS IN SECURITIES

    $ 750,000        —          —              $ (105,452 )      $17,288      $ (89,876 )    $ 1,120,799        —        $ 1,692,759            $ (105,452 ) 

 

†

Net change in unrealized appreciation/depreciation on investments is included in the Statement of Operations.

††

The Fund’s policy is to recognize transfers into and out of Level 3 as of the beginning of the reporting period.

The following table summarizes the valuation techniques used and unobservable inputs utilized to determine the value of certain of the Fund’s Level 3 investments as of April 30, 2017:

 

Description

    Balance at 04/30/17    Valuation Technique    Unobservable Input    Range

INVESTMENTS IN SECURITIES:

                        

ASSETS (Market Value):

                        

Convertible Preferred Stocks

                     $ 602,259        Last available closing price        Discount Range        0%

Mandatory Convertible Securities

            1,090,500        Last available closing price        Discount Range        0%
        

 

 

                 
         $ 1,692,759               
        

 

 

                 

 

Unobservable Input

   

Impact to Value if Input Increases

   

Impact to Value if Input Decreases

Discount Range    Decrease    Increase

Additional Information to Evaluate Qualitative Information.

General. The Fund uses recognized industry pricing services – approved by the Board and unaffiliated with the Adviser – to value most of its securities, and uses broker quotes provided by market makers of securities not valued by these and other recognized pricing sources. Several different pricing feeds are received to value domestic equity securities, international equity securities, preferred equity securities, and fixed income securities. The data within these feeds are ultimately sourced from major stock exchanges and trading systems where these securities trade. The prices supplied by external sources are checked by obtaining quotations or actual transaction prices from market participants. If a price obtained from the pricing source is deemed unreliable, prices will be sought from another pricing service or from a broker/dealer that trades that security or similar securities.

 

13

Bancroft Fund Ltd.

Notes to Financial Statements (Unaudited) (Continued)

 

 

Fair Valuation. Fair valued securities may be common or preferred equities, warrants, options, rights, or fixed income obligations. Where appropriate, Level 3 securities are those for which market quotations are not available, such as securities not traded for several days, or for which current bids are not available, or which are restricted as to transfer. When fair valuing a security, factors to consider include recent prices of comparable securities that are publicly traded, reliable prices of securities not publicly traded, the use of valuation models, current analyst reports, valuing the income or cash flow of the issuer, or cost if the preceding factors do not apply. A significant change in the unobservable inputs could result in a lower or higher value in Level 3 securities. The circumstances of Level 3 securities are frequently monitored to determine if fair valuation measures continue to apply.

The Adviser reports quarterly to the Board the results of the application of fair valuation policies and procedures. These may include backtesting the prices realized in subsequent trades of these fair valued securities to fair values previously recognized.

Investments in Other Investment Companies. The Fund may invest, from time to time, in shares of other investment companies (or entities that would be considered investment companies but are excluded from the definition pursuant to certain exceptions under the 1940 Act) (the “Acquired Funds”) in accordance with the 1940 Act and related rules. Shareholders in the Fund would bear the pro rata portion of the periodic expenses of the Acquired Funds in addition to the Fund’s expenses. For the six months ended April 30, 2017, the Fund’s pro rata portion of the periodic expenses charged by the Acquired Funds was less than one basis point.

Foreign Currency Translations. The books and records of the Fund are maintained in U.S. dollars. Foreign currencies, investments, and other assets and liabilities are translated into U.S. dollars at current exchange rates. Purchases and sales of investment securities, income, and expenses are translated at the exchange rate prevailing on the respective dates of such transactions. Unrealized gains and losses that result from changes in foreign exchange rates and/or changes in market prices of securities have been included in unrealized appreciation/depreciation on investments and foreign currency translations. Net realized foreign currency gains and losses resulting from changes in exchange rates include foreign currency gains and losses between trade date and settlement date on investment securities transactions, foreign currency transactions, and the difference between the amounts of interest and dividends recorded on the books of the Fund and the amounts actually received. The portion of foreign currency gains and losses related to fluctuation in exchange rates between the initial purchase trade date and subsequent sale trade date is included in realized gain/(loss) on investments.

Foreign Securities. The Fund may directly purchase securities of foreign issuers. Investing in securities of foreign issuers involves special risks not typically associated with investing in securities of U.S. issuers. The risks include possible revaluation of currencies, the inability to repatriate funds, less complete financial information about companies, and possible future adverse political and economic developments. Moreover, securities of many foreign issuers and their markets may be less liquid and their prices more volatile than securities of comparable U.S. issuers.

Foreign Taxes. The Fund may be subject to foreign taxes on income, gains on investments, or currency repatriation, a portion of which may be recoverable. The Fund will accrue such taxes and recoveries as applicable, based upon its current interpretation of tax rules and regulations that exist in the markets in which it invests.

 

14

Bancroft Fund Ltd.

Notes to Financial Statements (Unaudited) (Continued)

 

 

Restricted Securities. The Fund may invest up to 15% of its net assets in securities for which the markets are restricted. Restricted securities include securities whose disposition is subject to substantial legal or contractual restrictions. The sale of restricted securities often requires more time and results in higher brokerage charges or dealer discounts and other selling expenses than the sale of securities eligible for trading on national securities exchanges or in the over-the-counter markets. Restricted securities may sell at a price lower than similar securities that are not subject to restrictions on resale. Securities freely saleable among qualified institutional investors under special rules adopted by the SEC may be treated as liquid if they satisfy liquidity standards established by the Board. The continued liquidity of such securities is not as well assured as that of publicly traded securities, and accordingly the Board will monitor their liquidity. For the restricted securities as of April 30, 2017, please refer to the Schedule of Investments.

Securities Transactions and Investment Income. Securities transactions are accounted for on the trade date with realized gain/(loss) on investments determined by using the identified cost method. Interest income (including amortization of premium and accretion of discount) is recorded on the accrual basis. Premiums and discounts on debt securities are amortized using the effective yield to maturity method. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities that are recorded as soon after the ex-dividend date as the Fund becomes aware of such dividends. For certain securities known as “contingent payment debt instruments,” Federal tax regulations require the Fund to record non-cash, “contingent” interest income in addition to interest income actually received.

Custodian Fee Credits. When cash balances are maintained in the custody account, the Fund receives credits which are used to offset custodian fees. The gross expenses paid under the custody arrangement are included in custodian fees in the Statement of Operations with the corresponding expense offset, if any, shown as “Custodian fee credits.”

Distributions to Shareholders. Distributions to common shareholders are recorded on the ex-dividend date. Distributions to shareholders are based on income and capital gains as determined in accordance with federal income tax regulations, which may differ from income and capital gains as determined under GAAP. These differences are primarily due to differing treatments of income and gains on various investment securities and foreign currency transactions held by the Fund, timing differences, and differing characterizations of distributions made by the Fund. Distributions from net investment income for federal income tax purposes include net realized gains on foreign currency transactions. These book/tax differences are either temporary or permanent in nature. To the extent these differences are permanent, adjustments are made to the appropriate capital accounts in the period when the differences arise. These reclassifications have no impact on the NAV of the Fund.

The Fund declares and pays quarterly distributions from net investment income, capital gains, and paid-in capital. The actual source of the distribution is determined after the end of the year. Distributions during the year may be made in excess of required distributions. To the extent such distributions are made from current earnings and profits, they are considered ordinary income or long term capital gains. This may restrict the Fund’s ability to pass through to shareholders all of its net realized long term capital gains as a Capital Gain Dividend and may cause such gains to be treated as ordinary income, subject to the maximum federal income tax rate. Distributions sourced from paid-in capital should not be considered as dividend yield or the total return from an investment in the Fund. The Board will continue to monitor the Fund’s distribution level, taking into consideration the Fund’s NAV and the financial market environment. The Fund’s distribution policy is subject to modification by the Board at any time.

 

15

Bancroft Fund Ltd.

Notes to Financial Statements (Unaudited) (Continued)

 

 

The tax character of distributions paid during the year ended October 31, 2016 was as follows:

 

     Common      Preferred  

Distributions paid from:

      

Ordinary income

    $ 4,407,199      $ 179,284  

Net long term capital gains

      4,731,760        192,487  
  

 

 

     

 

 

  

Total distributions paid.

    $ 9,138,959      $ 371,771  
  

 

 

     

 

 

  

Provision for Income Taxes. The Fund intends to continue to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”). It is the policy of the Fund to comply with the requirements of the Code applicable to regulated investment companies and to distribute substantially all of its net investment company taxable income and net capital gains. Therefore, no provision for federal income taxes is required.

As of October 31, 2016, the components of accumulated earnings on a tax basis were as follows:

 

Net unrealized appreciation on investments

    $ 4,932,235  

Undistributed capital gains

      3,120,013  

Other temporary differences*

      (161,250 ) 
  

 

 

  

Total

    $ 7,890,998  
  

 

 

  

 

* Other temporary differences were due to current year dividends payable.

The following summarizes the tax cost of investments and the related net unrealized appreciation/depreciation at April 30, 2017:

 

     Cost    Gross
Unrealized
Appreciation		    Gross
Unrealized
Depreciation		      Net
Unrealized
Appreciation

Investments

    $136,443,978    $17,631,007    $ (4,397,688 )     $13,233,319

The Fund is required to evaluate tax positions expected to be taken in the course of preparing the Fund’s tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Income tax and related interest and penalties would be recognized by the Fund as tax expense in the Statement of Operations if the tax positions were deemed not to meet the more-likely-than-not threshold. As of April 30, 2017, the Adviser has reviewed all open tax years and concluded that there was no impact to the Fund’s net assets or results of operations. The Fund’s federal and state tax returns for the prior three fiscal years remain open, subject to examination. On an ongoing basis, the Adviser will monitor the Fund’s tax positions to determine if adjustments to this conclusion are necessary.

3. Investment Advisory Agreement and Other Transactions. The Fund has entered into an investment advisory agreement (the “Advisory Agreement”) with the Adviser which provides that the Fund will pay the Adviser a fee, computed daily and paid monthly, equal on an annual basis to 0.80% of the first $100,000,000 of the Fund’s average weekly net assets and 0.55% of the Fund’s average weekly net assets in excess of $100,000,000. In accordance with the Advisory Agreement, the Adviser provides a continuous investment program for the Fund’s portfolio and oversees the administration of all aspects of the Fund’s business and affairs.

 

16

Bancroft Fund Ltd.

Notes to Financial Statements (Unaudited) (Continued)

 

 

During the six months ended April 30, 2017, the Fund paid $461 in brokerage commissions on security trades to G. research, LLC, an affiliate of the Adviser.

During the six months ended April 30, 2017, the Fund received credits from a designated broker who agreed to pay certain Fund operating expenses. The amount of such expenses paid through this directed brokerage arrangement during this period was $973.

Through October 31, 2017, the Adviser has contractually agreed to waive fees or reimburse expenses of the Fund to the extent the total expenses of the Fund (excluding brokers costs, interest, taxes, acquired fund fees and expenses, expenses chargeable to capital, and extraordinary expenses) exceed 1.10% of the weekly average net assets of the Fund.

The cost of calculating the Fund’s NAV per share is a Fund expense pursuant to the Advisory Agreement between the Fund and the Adviser. During the six months ended April 30, 2017, the Fund paid or accrued $22,500 to the Adviser in connection with the cost of computing the Fund’s NAV.

As per the approval of the Board, the Fund compensates officers of the Fund, who are employed by the Fund and are not employed by the Adviser (although the officers may receive incentive based variable compensation from affiliates of the Adviser). For the six months ended April 30, 2017, the Fund paid or accrued $28,254 in payroll expenses in the Statement of Operations.

The Fund pays each Trustee who is not considered an affiliated person an annual retainer of $8,500 plus $1,000 for each Board meeting attended. Each Trustee is reimbursed by the Fund for any out of pocket expenses incurred in attending meetings. All Board committee members receive $500 per meeting attended. The Lead Independent Trustee receives an annual fee of $1,000 and the Audit and Nominating Committee Chairman each receive an annual fee of $2,000. A Trustee may receive a single meeting fee, allocated among the participating funds, for participation in certain meetings held on behalf of multiple funds. Trustees who are directors or employees of the Adviser or an affiliated company receive no compensation or expense reimbursement from the Fund.

4. Portfolio Securities. Purchases and sales of securities during the six months ended April 30, 2017, other than short term securities and U.S. Government obligations, aggregated $29,220,227 and $25,798,197, respectively.

5. Capital. The Fund is authorized to issue an unlimited number of common shares of beneficial interest (par value $0.01). The Board has authorized the repurchase of its shares in the open market when the shares are trading at a discount of 10.0% or more (or such other percentage as the Board may determine from time to time) from the NAV of the shares. During the year ended October 31, 2016, the Fund repurchased and retired 68,389 shares in the open market at an investment of $1,251,803 and an average discount of approximately 14.86%.

 

17

Bancroft Fund Ltd.

Notes to Financial Statements (Unaudited) (Continued)

 

 

Transactions in common shares of beneficial interest for the six months ended April 30, 2017 and the year ended October 31, 2016 were as follows:

 

     Six Months Ended
April 30, 2017
(Unaudited)		      Year Ended
October 31, 2016		  
     Shares      Amount      Shares     Amount  

Net increase in net assets from common shares issued upon reinvestment of distributions

      70,300      $ 1,425,677        140,967     $ 2,516,260  

Net decrease from repurchase of common shares (includes transaction costs)

      —        —        (68,389 )      (1,251,803 ) 
  

 

 

     

 

 

     

 

 

    

 

 

  

Net increase from transactions in Fund shares

      70,300      $ 1,425,677        72,578     $ 1,264,457  
  

 

 

     

 

 

     

 

 

    

 

 

  

On August 9, 2016, the Fund issued 1,200,000 Series A Preferred, receiving $28,910,000, after the deduction of estimated offering expenses and underwriting fees of $1,090,000.

The liquidation value of Series A Preferred is $25 per share. The Series A Preferred has an annual dividend rate of 5.375%. The Series A Preferred is noncallable before August 9, 2021. At April 30, 2017, 1,200,000 Series A Preferred were outstanding and accrued dividends amounted to $143,333.

The Fund’s Declaration of Trust, as amended, authorizes the issuance of an unlimited number of Series A Preferred, par value $0.01. The Series A Preferred are senior to the common shares and result in the financial leveraging of the common shares. Such leveraging tends to magnify both the risks and opportunities to common shareholders. Dividends on the Series A Preferred are cumulative. The Fund is required by the 1940 Act and by the Statement of Preferences to meet certain asset coverage tests with respect to the Series A Preferred. If the Fund fails to meet these requirements and does not correct such failure, the Fund may be required to redeem, in part or in full, the Series A Preferred at the redemption price of $25 per share plus an amount equal to the accumulated and unpaid dividends whether or not declared on such shares in order to meet these requirements. Additionally, failure to meet the foregoing asset coverage requirements could restrict the Fund’s ability to pay dividends to common shareholders and could lead to sales of portfolio securities at inopportune times. The income received on the Fund’s assets may vary in a manner unrelated to the fixed rate, which could have either a beneficial or detrimental impact on net investment income and gains available to common shareholders.

The holders of Series A Preferred generally are entitled to one vote per share held on each matter submitted to a vote of shareholders of the Fund and will vote together with holders of common shares as a single class. The holders of Series A Preferred voting together as a single class also have the right currently to elect two Trustees and under certain circumstances are entitled to elect a majority of the Board of Trustees. In addition, the affirmative vote of a majority of the votes entitled to be cast by holders of all outstanding shares of the Series A Preferred, voting as a single class, will be required to approve any plan of reorganization adversely affecting the Series A Preferred, and the approval of two-thirds of each class, voting separately, of the Fund’s outstanding voting stock must approve the conversion of the Fund from a closed-end to an open-end investment company. The approval of a majority (as defined in the 1940 Act) of the outstanding Series A Preferred and a majority (as defined in the 1940 Act) of the Fund’s outstanding voting securities are required to approve certain other actions, including changes in the Fund’s investment objectives or fundamental investment policies.

 

18

Bancroft Fund Ltd.

Notes to Financial Statements (Unaudited) (Continued)

 

 

6. Convertible Securities Concentration. It is the Fund’s policy to invest at least 65% of its assets in convertible securities. Although convertible securities do derive part of their value from that of the securities into which they are convertible, they are not considered derivative financial instruments. However, the Fund’s mandatory convertible securities include features which render them more sensitive to price changes of their underlying securities. Thus they expose the Fund to greater downside risk than traditional convertible securities, but generally less than that of the underlying common stock.

7. Indemnifications. The Fund enters into contracts that contain a variety of indemnifications. The Fund’s maximum exposure under these arrangements is unknown. However, the Fund has not had prior claims or losses pursuant to these contracts. Management has reviewed the Fund’s existing contracts and expects the risk of loss to be remote.

8. Subsequent Events. Management has evaluated the impact on the Fund of all subsequent events occurring through the date the financial statements were issued and has determined that there were no subsequent events requiring recognition or disclosure in the financial statements.

 

19

Bancroft Fund Ltd.

Notes to Financial Statements (Unaudited) (Continued)

 

 

Shareholder Meeting – May 15, 2017 – Final Results

The Fund’s Annual Meeting of Shareholders was held on May 15, 2017 at the Greenwich Library in Greenwich, Connecticut. At the meeting, common and preferred shareholders, voting together as a single class, elected Kinchen C. Bizzell, James P. Conn, and Frank J. Fahrenkopf, Jr. as Trustees of the Fund. A total of 5,371,741 votes, 5,361,857 votes, and 4,842,929 votes were cast in favor of these Trustees, and 134,791 votes, 144,675 votes, and 663,603 votes were withheld for these Trustees, respectively.

In addition, preferred shareholders, voting as a separate class, elected Michael J. Melarkey as Trustee of the Fund. A total of 1,125,349 votes were cast in favor of this Trustee and 40,952 votes were withheld for this Trustee.

Mario J. Gabelli, CFA, Elizabeth C. Bogan, Ph.D., Daniel D. Harding, CFA, Kuni Nakamura, Jane D. O’Keeffe, Nicolas W. Platt, and Anthonie C. van Ekris continue to serve in their capacities as Trustees of the Fund.

We thank you for your participation and appreciate your continued support.

 

20

Bancroft Fund Ltd.

One Corporate Center

Rye, NY 10580-1422

Portfolio Management Team Biographies

Thomas H. Dinsmore, CFA, joined Gabelli Funds, LLC in 2015. He currently serves as a portfolio manager of Gabelli Funds, LLC and manages several funds within the Gabelli/GAMCO Funds Complex. From 1996 to 2015, Mr. Dinsmore was Chairman and CEO of Dinsmore Capital Management; CEO and Portfolio Manager of Bancroft Fund Ltd; and CEO, Portfolio Manager, and co-founder of Ellsworth Growth and Income Fund Ltd. He received a B.S. in Economics from the Wharton School of Business and an M.A. degree in Economics from Fairleigh Dickinson University.

Jane D. O’Keeffe joined Gabelli Funds, LLC in 2015. She currently serves as a portfolio manager of Gabelli Funds, LLC and manages several funds within the Gabelli/GAMCO Funds Complex. From 1996 to 2015, Ms. O’Keeffe was President and Director of Dinsmore Capital Management where she was also a Portfolio Manager of Bancroft Fund Ltd. and Ellsworth Growth and Income Fund Ltd. Prior to joining Dinsmore Capital Management, Ms. O’Keeffe held positions of increasing responsibilities at IDS Progressive Fund, Soros Fund Management Company, Simms Capital Management, and Fiduciary Trust International. She earned a B.A. from the University of New Hampshire and attended the Lubin Graduate School of Business at Pace University.

James A. Dinsmore, CFA, joined Gabelli Funds, LLC in 2015. He currently serves as a portfolio manager of Gabelli Funds, LLC and manages several funds within the Gabelli/GAMCO Funds Complex. Mr. Dinsmore received a B.A. in Economics from Cornell University and an MBA degree from Rutgers University.

 

We have separated the portfolio managers’ commentary from the financial statements and investment portfolio due to corporate governance regulations stipulated by the Sarbanes-Oxley Act of 2002. We have done this to ensure that the content of the portfolio managers’ commentary is unrestricted. Both the commentary and the financial statements, including the portfolio of investments, will be available on our website at www.gabelli.com.

The Net Asset Value per share appears in the Publicly Traded Funds column, under the heading “Convertible Securities Funds,” in Monday’s The Wall Street Journal. It is also listed in Barron’s Mutual Funds/Closed End Funds section under the heading “Convertible Securities Funds.”

The Net Asset Value per share may be obtained each day by calling (914) 921-5070 or visiting www.gabelli.com.

The NASDAQ symbol for the Net Asset Value is “XBCVX.”

 

Notice is hereby given in accordance with Section 23(c) of the Investment Company Act of 1940, as amended, that the Fund may from time to time purchase its common shares in the open market when the Fund’s shares are trading at a discount of 10% or more from the net asset value of the shares. The Fund may also, from time to time, purchase its preferred shares in the open market when the preferred shares are trading at a discount to the liquidation value.

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BANCROFT FUND LTD.

One Corporate Center

Rye, NY 10580-1422

 

t

800-GABELLI (800-422-3554)

 

f

914-921-5118

 

e

info@gabelli.com

 

 

GABELLI.COM

 

 

 

TRUSTEES

Mario J. Gabelli, CFA

Chairman and

Chief Executive Officer,

GAMCO Investors, Inc.

Executive Chairman,

Associated Capital Group Inc.

Kinchen C. Bizzell, CFA

Managing Director,

CAVU Securities

Elizabeth C. Bogan, Ph.D

Senior Lecturer, Economics

Princeton University

James P. Conn

Former Managing Director &

Chief Investment Officer,

Financial Security Assurance

Holdings Ltd.

Frank J. Fahrenkopf

Former President &

Chief Executive Officer,

American Gaming Association

Daniel D. Harding, CFA

Managing General Director,

Global Equity Income Fund

Michael J. Melarkey

Of Counsel,

McDonald Carano Wilson LLP

Kuni Nakamura

President,

Advanced Polymer, Inc.

Jane D. O’Keeffe

Portfolio Manager,

Gabelli Funds, LLC

 

Nicholas W. Platt

Former Managing Director,

FTI Consulting Inc.

Anthonie C. van Ekris

Chairman,

BALMAC International Inc.

OFFICERS

Jane D. O’Keeffe

President

Agnes Mullady

Treasurer

Andrea R. Mango

Secretary & Vice President

Laurissa M. Martire

Ombudsman & Vice President

Wayne C. Pinsent, CFA

Ombudsman & Vice President

Richard J. Walz

Chief Compliance Officer

INVESTMENT ADVISER

Gabelli Funds, LLC

CUSTODIAN

State Street Bank and Trust Company

COUNSEL

Skadden, Arps, Slate, Meagher & Flom LLP

TRANSFER AGENT AND REGISTRAR

American Stock Transfer and

Trust Company

 

 

 

 

BCV Q2/2017

LOGO

 

Item 2. Code of Ethics.

Not applicable.

 

Item 3. Audit Committee Financial Expert.

Not applicable.

 

Item 4. Principal Accountant Fees and Services.

Not applicable.

 

Item 5. Audit Committee of Listed Registrants.

Not applicable.

 

Item 6. Investments.

 

(a)

Schedule of Investments in securities of unaffiliated issuers as of the close of the reporting period is included as part of the report to shareholders filed under Item 1 of this form.

 

(b)

Not applicable.

 

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable.

 

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

There has been no change, as of the date of this filing, in any of the portfolio managers identified in response to paragraph (a)(1) of this Item in the registrant’s most recently filed annual report on Form N-CSR.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

REGISTRANT PURCHASES OF EQUITY SECURITIES

 

Period

 

  

(a) Total Number

of Shares (or
Units) Purchased

 

  

(b) Average Price Paid
per Share (or Unit)

 

  

(c) Total Number of
Shares (or Units)
Purchased as Part of
Publicly Announced
Plans or Programs

 

  

(d) Maximum Number (or
Approximate Dollar Value)
of Shares (or Units) that
May Yet Be Purchased
Under the Plans or
Programs

 

Month #1

11/01/16 through  

11/30/16

 

  

Common – N/A

 

Preferred Series A– N/A

  

Common – N/A

 

Preferred Series A– N/A

  

Common – N/A

 

Preferred Series A– N/A

  

Common – 5,249,900

 

Preferred Series A – 1,200,000

 

Month #2

12/01/16 through

12/31/16

 

  

Common – N/A

 

Preferred Series A– N/A

  

Common – N/A

 

Preferred Series A– N/A

  

Common – N/A

 

Preferred Series A– N/A

  

Common – 5,249,900

 

Preferred Series A – 1,200,000

 

Month #3

01/01/17 through

01/31/11

 

  

Common – N/A

 

Preferred Series A– N/A

  

Common – N/A

 

Preferred Series A– N/A

  

Common – N/A

 

Preferred Series A– N/A

  

Common – 5,249,900

 

Preferred Series A – 1,200,000

 

Month #4

02/01/17 through

02/28/17

 

  

Common – N/A

 

Preferred Series A– N/A

  

Common – N/A

 

Preferred Series A– N/A

  

Common – N/A

 

Preferred Series A– N/A

  

Common – 5,249,900

 

Preferred Series A – 1,200,000

 

Month #5

03/01/17 through

03/31/17

 

  

Common – N/A

 

Preferred Series A– N/A

  

Common – N/A

 

Preferred Series A– N/A

  

Common – N/A

 

Preferred Series A– N/A

  

Common – 5,249,900

 

Preferred Series A – 1,200,000

 

Month #6

04/01/17 through

04/30/17

 

  

Common – N/A

 

Preferred Series A– N/A

  

Common – N/A

 

Preferred Series A– N/A

  

Common – N/A

 

Preferred Series A– N/A

  

Common – 5,249,900

 

Preferred Series A – 1,200,000

 

Total

  

Common – N/A

 

Preferred Series A– N/A

  

Common – N/A

 

Preferred Series A– N/A

  

Common – N/A

 

Preferred Series A– N/A

 

  

N/A

 

Footnote columns (c) and (d) of the table, by disclosing the following information in the aggregate for all plans or programs publicly announced:

 

a. The date each plan or program was announced – The notice of the potential repurchase of common and preferred shares occurs quarterly in the Fund’s quarterly report in accordance with Section 23(c) of the Investment Company Act of 1940, as amended.

b. The dollar amount (or share or unit amount) approved – Any or all common shares outstanding may be repurchased when the Fund’s common shares are trading at a discount of 10% or more from the net asset value of the shares.
c.

The expiration date (if any) of each plan or program – The Fund’s repurchase plans are ongoing.

d. Each plan or program that has expired during the period covered by the table – The Fund’s repurchase plans are ongoing.
e. Each plan or program the registrant has determined to terminate prior to expiration, or under which the registrant does not intend to make further purchases. – The Fund’s repurchase plans are ongoing.

 

Item 10.  Submission of Matters to a Vote of Security Holders.

There have been no material changes to the procedures by which the shareholders may recommend nominees to the registrant’s Board of Directors, where those changes were implemented after the registrant last provided disclosure in response to the requirements of Item 407(c)(2)(iv) of Regulation S-K (17 CFR 229.407) (as required by Item 22(b)(15) of Schedule 14A (17 CFR 240.14a-101)), or this Item.

 

Item 11.  Controls and Procedures.

 

  (a)

The registrant’s principal executive and principal financial officers, or persons performing similar functions have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing of this report that includes the disclosure required by this paragraph, based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 15d-15(b) under the Securities Exchange Act of 1934, as amended.

 

  (b)

The registrant’s certifying officers are not aware of any changes in the registrant’s internal control over financial reporting (as defined in rule 30a-3(d) under the 1940 Act) that occurred during the registrant’s second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

 

Item 12.  Exhibits.

 

   (a)(1)   

Not applicable.

     
   (a)(2)   

Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto.

     
   (a)(3)   

Not applicable.

     
   (b)   

Certifications pursuant to Rule 30a-2(b) under the 1940 Act and Section 906 of the Sarbanes- Oxley Act of 2002 are attached hereto.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant)     Bancroft Fund Ltd.                                                                                                              

By (Signature and Title)*     /s/ Jane D. O’Keeffe                                                                                      

Jane D. O’Keeffe, Principal Executive Officer

Date     6/15/2017                                                                                                                                         

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By (Signature and Title)*     /s/ Jane D. O’Keeffe                                                                                        

Jane D. O’Keeffe, Principal Executive Officer

Date     6/15/2017                                                                                                                                           

By (Signature and Title)*     /s/ John C. Ball                                                                                                

John C. Ball, Principal Financial Officer and Treasurer

Date     6/15/2017                                                                                                                                           

 

* 

Print the name and title of each signing officer under his or her signature.