July 19, 2006 – Bancroft Fund Ltd. (AMEX: BCV) announced today that the Board of
Trustees of Bancroft Fund Ltd. has approved changes to the Fund’s investment policies
regarding purchases of convertible securities.
The Board has approved the following new investment policy for the Fund:
“The Fund will invest, under normal circumstances, at least 65% of the value of its
assets (consisting of net assets plus the amount of any borrowings for investment
purposes) in convertible securities.”
However, the Board has eliminated the following investment policy for the Fund:
“The Fund will invest, under normal circumstances, at least 80% of the value of its
assets (consisting of net assets plus the amount of any borrowings for investment
purposes) in convertible securities.”
These changes will become effective as of September 29, 2006.
The changes will not affect the Fund’s investment objective of “invest[ing]
primarily in convertible securities with the objectives of providing income and the
potential for capital appreciation (which objectives the Fund considers to be relatively
equal due to the nature of the securities in which it invests).”
As a result of the changes, the Fund will have greater flexibility in purchasing
non-convertible securities, such as non-convertible debt securities, when market
conditions favor those types of investments.
AMEX - BCV Cusip 059695106
For further information please contact:
Gary I. Levine,
Executive Vice President Ph. (973) 631-1177
Fax (973) 631-9893
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