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Bancroft Funds Report Earnings and Financial Update
Bancroft Funds



MORRISTOWN, NJ--August 21, 2008- Bancroft Fund Ltd. (AMEX: BCV) today reported earnings, financial highlights and certain portfolio information for the nine months ended July 31, 2008:

EARNINGS REPORT            Three Months Ended         Nine Months Ended
                                 July 31                  July 31
                            2008         2007        2008         2007
                        ------------ ------------ ------------ ------------


Net Income                  $970,000   $1,309,000   $3,127,000   $3,647,000
   Per Share                   $0.19        $0.23        $0.60        $0.64
Shares Outstanding         5,189,875    5,733,016    5,189,875    5,733,016
Total Net Assets        $100,760,000 $133,301,000 $100,760,000 $133,301,000
Net Asset Value
 Per Share                    $19.41       $23.25       $19.41       $23.25

FUND STATISTICS                         TOP TEN HOLDINGS
                                        by underlying common stock       % of
                                                                   Net Assets
Market value                 $16.80     Prudential Financial, Inc.        3.9%
Net asset value (NAV)        $19.41     Chesapeake Energy Corp.           3.2
Premium/(Discount)           (13.45)%   LSB Industries, Inc.              3.1
Total Net Assets       $100,760,000     Freeport-McMoRan Copper
                                         & Gold Inc.                      2.8
12-Month income distribution $0.796     New York Community Bancorp, Inc.  2.6
Yield on market value          4.74%    LSI Corp.                         2.5
Ratio of expenses              1.20%*   The Walt Disney Company           2.5
Ratio of net income            3.74%*   Wyeth                             2.5
Portfolio turnover            35.44%    Oil States International, Inc.    2.4
Shares outstanding        5,189,875     Companhia Vale do Rio Doce        2.3
* Annualized

MAJOR INDUSTRY                 % of     QUALITY ALLOCATION FROM MOODY'S
 EXPOSURE                Net Assets     (From S&P when Moody's is unavailable)
                                       
Energy                         14.4%         % of Portfolio
Pharmaceuticals                11.6     Aa               8% 
Insurance                       7.8     A               18
Telecommunications              6.7     Baa             16
Semiconductors                  6.0     Ba               3
Banking/Savings and Loan        5.8     B               20
Minerals and Mining             5.1     Caa              4
Consumer Goods                  5.0     Not Rated       32
Computer Hardware               4.9     
Health Care                     4.2     Excludes equity securities and cash
                                        
ASSET ALLOCATION               % of 
                         Net Assets
Convertible Bonds & Notes      56.8%
Corporate Bonds & Notes         1.0
Convertible Preferred Stocks   11.1
Mandatory Convertible
 Securities                    24.4
Other Assets                    6.7



Bancroft Fund Ltd. operates as a closed-end, diversified management investment company and invests 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, over the long-term, due to the nature of the securities in which it invests. Its shares are traded on the American Stock Exchange under the ticker symbol BCV.



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