<PAGE> 1
Bancroft Convertible Fund
[logo]
2000 Annual Report
October 31, 2000
<PAGE> 2
Bancroft Convertible Fund, Inc. 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 Company considers to be
relatively equal, over the long-term, due to the nature of the securities in
which it invests.
Highlights
<TABLE>
<CAPTION>
Performance through 10/31/00 with dividends reinvested
10 Months 1 Year 5 Years 10 Years
--------- ------ ------- --------
<S> <C> <C> <C> <C>
Bancroft market value * .................... 14.15% 20.63% 102.20% 357.94%
Bancroft net asset value + ................. 6.36 13.62 102.36 310.96
Closed-end convertible fund average + ...... 5.77 14.11 77.28 297.92
S&P 500 * .................................. (1.81) 6.08 166.56 489.80
Russell 2000 * ............................. (0.42) 17.61 80.03 318.82++
Lehman Aggregate Bond Total Return Index + . 7.83 7.30 35.94 115.51
</TABLE>
Performance data represent past results and do not reflect future performance.
* From Bloomberg L.P. pricing service.
+ From Lipper, Inc. Closed-End Fund Performance Analysis,
dated October 31, 2000.
++ Simple appreciation of index.
--------------------------------------------------------------------------
<TABLE>
<CAPTION>
Quarterly History of NAV and Market Price
Net Asset Values Market Prices (AMEX, symbol BCV)
Qtr. Ended High Low Close High Low Close
---------- ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
Jan. 00 $28.72 $24.91 $26.04 $23.69 $19.88 $20.81
Apr. 00 28.84 25.72 27.42 22.44 20.00 21.00
Jul. 00 29.01 25.93 27.48 22.63 20.00 22.63
Oct. 00 29.37 26.36 27.09 24.63 21.63 22.63
</TABLE>
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<TABLE>
<CAPTION>
Dividend Distributions (12 Months)
Record Payment Capital * Corporate
Date Date Income Gains Total Deduction
-------- -------- ------ ------- ------ -----------
<S> <C> <C> <C> <C> <C>
11/24/99 12/28/99 $0.183 $2.897 $3.080 21%
3/16/00 3/30/00 0.200 --- 0.200 23
6/15/00 6/29/00 0.210 --- 0.210 23
9/14/00 9/28/00 0.210 --- 0.210 23
------ ------- ------
$0.803 $2.897 $3.700
====== ======= ======
</TABLE>
* Percentage of each ordinary income distribution qualifying for
the dividend received tax deduction by corporate shareholders.
<PAGE> 3
TO OUR SHAREHOLDERS
At this time last year the stock market was exploding upward as massive
amounts of money flowed into stocks that appeared to many to be riding
the information superhighway wave. In our letter to shareholders in the
1999 Annual Report, we indicated that we thought that there were signs
of a "frothy top". It is clear in retrospect that many stocks were bid
up too high by the substantial amount of money flowing into them and
that the market has since made substantial progress in correcting some
of the unsustainable prices of the time.
We believe that a portion of the stock market's volatility is due to
monetary policy. It is likely that the liquidity made available to the
economy by the Federal Reserve Bank in order to cope with or prevent
Y2K problems caused the inflation of stock prices and that the
subsequent draining of liquidity caused the deflation of stock prices.
The Chairman of the Federal Reserve Bank, Alan Greenspan, has indicated
that the signs of inflation are receding. This implies that the
monetary authorities are unlikely to continue draining liquidity from
the economy. If this is so, the stage is being set for the end of the
Bear market that the U.S. equity markets have been in since March.
Further, interest rates are now likely to fall, which helps both the
bond and stock markets.
With the flow of money in to the financial markets and the productivity
gains created by the improvements in the availability of information
and technology, there are substantial reasons to be optimistic about
the financial markets for 2001. We are also optimistic about the
overall economy as well.
In its November 30, 2000 edition of its "Quicktake Report",
Morningstar* continued to rate Bancroft's performance at four-stars
(above average). Shareholders who wish a copy of this report or the
most recent report issued by Standard and Poor's on the Fund should
contact us. You can also view the Morningstar report on their website,
morningstar.com.**
At its November meeting the Board of Directors declared a dividend
totaling $3.515 per share consisting of 41.9 cents per share from
undistributed net investment income, $1.80 per share from realized
short-term capital gains, and $1.296 per share from long-term capital
gains realized in fiscal year 2000. This dividend is payable on
December 28, 2000 to shareholders of record November 23, 2000.
The 2001 annual meeting of shareholders will be held on February 12,
2001 at our offices in Morristown, NJ. Particulars will be included in
the proxy statement. All shareholders are welcome and we hope to see
you there.
Thomas H. Dinsmore
Chairman of the Board
December 11, 2000
* Morningstar is a mutual fund analysis and statistical reporting
service that reports on and rates most mutual funds.
** Morningstar is solely responsible for the content of its site.
See Important Factors Regarding Forward-Looking Statements on page 13
of this report.
<PAGE> 4
<TABLE>
<CAPTION>
Largest Investment Holdings by underlying common stock
Principal
Amount Value % Total
or Shares (Note 1) Net Assets
---------- ----------- ----------
<S> <C> <C>
3,000,000 Telecom Corp. of New Zealand................................... $ 2,891,250 2.6%
The principal supplier of telecommunications in New Zealand.
(exchangeable from Bell Atlantic Financial Services, Inc.
5.75% due 2003)
30,000 MetLife, Inc................................................... 2,634,375 2.4
Provides insurance and financial services to a range of
individual and institutional customers.
(exchangeable from MetLife Capital Trust I 8% equity
security units)
2,000,000 Cable and Wireless Communications plc.......................... 2,235,000 2.0
An integrated telecommunications company which operates
throughout the United Kingdom, providing television
and Internet services.
(exchangeable from Bell Atlantic Financial Services, Inc.
4.25% due 2005)
2,150,000 American Express Company....................................... 2,201,063 2.0
Through its subsidiaries, provides travel-related, financial
advisory, and international banking services around the world.
(exchangeable from Exchangeable Certificate Corp. 0.625%
due 2005)
Time Warner, Inc............................................... 2,087,500 1.9
2,000,000 A media company with operations in entertainment, cable
networks and publishing.
(exchangeable from Merrill Lynch & Co., Inc. 0.25%
due 2006)
50,000 The Coastal Corp............................................... 2,068,750 1.9
Gathers, markets, processes, stores and transmits gas, as well
as refines, markets and distributes petroleum and chemicals.
The company is also involved in oil and gas exploration and
production, coal mining and power.
25,000 ACE Limited.................................................... 2,018,750 1.8
The holding company for the ACE Group of Companies, a
property and casualty insurance business.
2,250,000 Costco Wholesale Corp.......................................... 1,987,031 1.8
Operates wholesale membership warehouses in the United
States, Taiwan, Canada, Korea, Japan, and the United
Kingdom.
2,000,000 General Electric Corp.......................................... 1,980,000 1.8
Develops and manufactures products for the utilization of ----------- ----------
electricity. GE also offers financial services through GE
Capital Services, Inc. and owns the National Broadcasting
Company.
(exchangeable from CS First Boston, Inc. 2% due 2010 and
Exchangeable Certificate Corp. 1.25% due 2004)
Total.......................................................... $20,103,719 18.2%
=========== ==========
</TABLE>
<PAGE> 5
<TABLE>
<CAPTION>
Major Industry Exposure
% Total
Net Assets
----------
<S> <C>
Telecommunications.......... 14.48%
Energy...................... 14.47
Technology.................. 14.06
Financial & Insurance....... 10.02
Health Care & Drugs......... 8.02
Entertainment............... 6.69
Banking..................... 6.54
Cable....................... 4.89
Capital Goods............... 3.78
Retail...................... 3.52
----------
Total....................... 86.47%
</TABLE>
<TABLE>
<CAPTION>
Major Portfolio Changes by underlying common stock
Three Months Ended October 31, 2000
Principal
Amount
or Shares
---------
<S> <C>
ADDITIONS
Analog Devices, Inc......................................... 1,000,000
Brocade Communications Corp.
(exchangeable from The Goldman Sachs Group, Inc.).......... 448
Calpine Corp. (exchangeable from Calpine Capital Trust III). 17,500
Charter Communications, Inc................................. 1,000,000
The Chase Manhattan Corp.
(exchangeable from JMH Finance, Ltd.)...................... 1,000,000
Covad Communications Group, Inc............................. 1,250,000
Level 3 Communications, Inc................................. 980,000
Online Resources & Communications Corp...................... 1,000,000
QUALCOMM, Inc. (exchangeable from First Union National Bank) 1,000,000
Telecom Italia S.p.A.
(exchangeable from Tecnost International, N.V.)............ 1,500,000
United Parcel Service, Inc.................................. 1,000,000
REDUCTIONS
Clear Channel Communications, Inc........................... 1,000,000
GIN Internet Index.......................................... 1,000,000
Interim Services, Inc........................................ 1,500,000
Juniper Networks, Inc....................................... 1,000,000
Level 3 Communications, Inc................................. 1,500,000
Merck & Co. and Pfizer, Inc.
(exchangeable from Bear Stearns Cos., Inc.)................ 2,000,000
Merrill Lynch & Co., Inc. technology basket................. 1,500,000
Motorola, Inc. (exchangeable from CS First Boston, Inc.).... 800,000
NTL, Inc.................................................... 1,000,000
Siebel Systems, Inc......................................... 200,000
TXU Corp.................................................... 20,000
</TABLE>
<PAGE> 6
<TABLE>
<CAPTION>
Portfolio of Investments October 31, 2000
Principal
Amount Identified Value
or Shares Cost (Note 1)
---------- ---------- ----------
<S> <C> <C> <C>
ADVERTISING - 2.7%
$1,500,000 Interpublic Group Cos., Inc. 1.87% 2006 cv. sub. deb. 144A (Baa1)........... $1,335,652 $1,425,000
1,000,000 Young & Rubicam, Inc. 3% 2005 cv. sub. notes 144A (Baa3).................... 1,015,000 1,011,250
600,000 Interpublic Group Cos., Inc. 1.87% 2006 cv. sub. deb. 144A (Baa1)........... 624,000 606,750
---------- ----------
2,974,652 3,043,000
---------- ----------
AEROSPACE - 0.4%
705,000 SPACEHAB, Inc. 8% 2007 cv. sub. notes 144A (NR)............................. 706,450 493,500
---------- ----------
BANKING - 6.5%
50,000 shs CNB Capital Trust I 6% SPuRS (A1)
(exch. for Fifth Third Bancorp common stock)................................ 1,253,063 1,762,500
1,000,000 Deutsche Bank Financial, Inc. 1.25% 2007 medium-term exch. notes (Aa3)
(exch. for CitiGroup, Inc. common stock).................................... 1,018,667 1,101,250
1,000,000 JMH Finance, Ltd. 4.75% 2007 guaranteed bonds 144A
(exch. for The Chase Manhattan Corp. common stock).......................... 1,043,750 1,012,500
40,000 shs National Australia Bank Ltd. 7.875% exch. capital units (A1)................ 1,038,700 1,005,000
25,000 shs Sovereign Capital Trust II 7.50% PIERS (B1)
(exch. for Sovereign Bancorp, Inc. common stock)............................ 1,250,000 1,321,875
35,000 shs WBK Trust 10% STRYPES * (NR)
(exch. for Westpac Banking Corp., Ltd. common stock)........................ 928,997 1,082,813
---------- ----------
6,533,177 7,285,938
---------- ----------
CABLE - 4.9%
2,000,000 Bell Atlantic Financial Services, Inc. 4.25% 2005 euro. cv. sub. deb. (A1)
(exch. for the cash equiv. of Cable & Wireless Communications plc
common stock)............................................................... 2,289,033 2,235,000
1,000,000 Charter Communications, Inc. 5.75% 2005 sr. cv. notes 144A (NR)............. 1,000,000 1,077,500
20,000 shs Cox Communications, Inc. 7% FELINE PRIDES * (Baa2).......................... 1,000,000 1,157,500
29,000 shs UnitedGlobalCom dep. shs. representing 7% series D sr. cum. cv. pfd. (Caa).. 1,666,125 973,313
---------- ----------
5,955,158 5,443,313
---------- ----------
CAPITAL GOODS - 3.8%
1,050,000 Advanced Energy Industries, Inc. 5.25% 2006 cv. sub. notes (NR)............. 1,066,500 754,031
1,500,000 CS First Boston, Inc. 2% 2010 sr. medium-term exch. notes 144A (A1)
(exch. for General Electric Corp. common stock)............................. 1,533,613 1,432,500
500,000 Exchangeable Certificate Corp. 1.25% 2004 sr. medium-term exch. notes 144A
(AAA)(exch. for General Electric Corp. common stock)........................ 487,511 547,500
15,000 shs Hanover Compressor Capital Trust 7.25% cv. pfd. TIDES 144A (B1)
(conv. into Hanover Compressor Company common stock)........................ 750,000 1,477,500
---------- ----------
3,837,624 4,211,531
---------- ----------
DATA-PROCESSING SERVICES - 2.4%
1,750,000 National Data Corp. 5% 2003 cv. sub. notes (Ba3)............................ 1,746,875 1,637,344
1,000,000 Online Resources & Communications Corp. 8% 2005 cv. sub. notes 144A (NR).... 1,000,000 1,005,000
---------- ----------
2,746,875 2,642,344
---------- ----------
ENERGY - 14.5%
24,000 shs AES Trust VII $3 trust cv. pfd. securities 144A (Ba3)
(conv. into AES Corp. common stock)......................................... 1,276,500 1,696,500
40,800 shs Apache Corp. $2.015 dep. shs. representing ACES pfd. * (Baa2)............... 1,354,341 1,938,000
17,500 shs Calpine Capital Trust III 5% HIGH TIDES 144A (Ba2)
(exch. for Calpine Corp. common stock)...................................... 998,681 980,000
50,000 shs The Coastal Corp. 6.625% FELINE PRIDES * (Baa2)............................. 1,212,409 2,068,750
500,000 Devon Energy Corp. 4.90% 2008 cv. sub. deb. (Baa1)
(conv. into Chevron Corp. common stock)..................................... 495,000 470,625
1,000,000 Devon Energy Corp. 4.95% 2008 cv. sub. deb. (Baa1)
(conv. into Chevron Corp. common stock)..................................... 995,000 943,750
</TABLE>
<PAGE> 7
<TABLE>
<CAPTION>
Portfolio of Investments October 31, 2000 (continued)
Principal
Amount Identified Value
or Shares Cost (Note 1)
---------- ---------- ----------
<S> <C> <C> <C>
$1,450,000 Diamond Offshore Drilling, Inc. 3.75% 2007 cv. sub. notes (Baa1)............ $1,489,875 $1,467,219
10,000 shs Dominion Resources, Inc. 9.50% PIES * (Baa1)................................ 500,000 588,125
50,000 Enron Corp. 7% 2002 exch. notes * (Baa1)
(conv. into EOG Resources, Inc. common stock)............................... 1,101,940 1,746,875
1,000,000 Exchangeable Certificate Corp. 2% 2005 medium-term exch. notes 144A (AAA)
(exch. for Exxon Mobil Corp. common stock).................................. 956,761 1,011,250
750,000 Kerr-McGee Corp. 5.25% 2010 cv. sub. deb. (Baa2)............................ 750,938 930,000
500,000 Kerr-McGee Corp. 7.50% 2014 cv. sub. deb. (Baa2)............................ 476,250 488,750
30,000 Kerr-McGee Corp. 5.50% 2004 DECS * (Baa1)
(exch. for Devon Energy Corp. common stock)................................. 995,625 1,368,750
500,000 Loews Corp. 3.125% 2007 cv. sub. deb. (A2)
(conv. into Diamond Offshore Drilling, Inc. common stock)................... 428,125 413,125
---------- ----------
13,031,44 16,111,719
---------- ----------
ENTERTAINMENT - 8.0%
1,750,000 America Online, Inc. 0% 2019 cv. sub. deb. (Ba3)............................ 992,815 892,500
1,500,000 Clear Channel Communications, Inc. 2.625% 2003 sr. cv. notes (Baa3)......... 1,783,863 1,670,625
2,000,000 Deutsche Bank Financial, Inc. 1% 2007 sr. medium-term exch. notes (Aa3)
(exch. for the cash value of Thw Walt Disney Corp. common stock)............ 2,102,550 1,950,000
1,000,000 EchoStar Comm. Corp. 4.875% 2007 cv. sub. notes 144A (Caa2)................. 1,000,000 1,170,625
1,000,000 Imax Corp. 5.75% 2003 cv. sub. notes 144A (B1).............................. 1,000,000 458,750
2,000,000 Merrill Lynch & Co., Inc. 0.25% 2006 series B medium-term notes (Aa3)
(exch. for Time Warner, Inc. common stock).................................. 2,000,000 2,087,500
1,000 shs Radio One Inc. 6.50% HIGH TIDES 144A (Caa).................................. 1,000,000 695,000
---------- ----------
9,879,228 8,925,000
---------- ----------
FINANCIAL & INSURANCE - 10.0%
25,000 shs ACE Limited 8.25% FELINE PRIDES * (A2)...................................... 1,250,000 2,018,750
15,974 shs American General Corp. common stock......................................... 658,439 1,285,907
1,500,000 American International Group 0.50% 2007 cv. notes (AAA)..................... 1,500,000 1,721,250
2,150,000 Exchangeable Certificate Corp. 0.625% 2005 medium-term exch. notes 144A
(AAA)(exch. for American Express Co. common stock).......................... 2,007,347 2,201,063
30,000 MetLife Capital Trust I 8% equity security units * (A1)
(exch. for MetLife, Inc. common stock)...................................... 1,494,199 2,634,375
925,000 Penn Treaty American Corp. 6.25% 2003 cv. sub. notes 144A(BB+).............. 954,875 772,375
625,000 Penn Treaty American Corp. 6.25% 2003 cv. sub. notes (BB+).................. 605,938 521,875
---------- ----------
8,470,798 11,155,595
---------- ----------
HEALTH CARE & DRUGS - 6.7%
815,000 Allergan 0% LYON 144A (Baa1)................................................ 502,154 521,600
2,000,000 Elan Finance Corp. 0% 2018 LYON 144A (Baa3)
(exch. for ADRs representing Elan Corp., plc common stock).................. 1,121,755 1,570,000
800,000 Human Genome Sciences, Inc. 3.75% 2007 cv. sub. notes (NR).................. 684,000 790,000
250,000 Inhale Therapeutic System, Inc. 3.50% 2007 cv. sub. notes 144A (NR)......... 250,000 280,625
500,000 Ivax Corp. 5.50% 2007 cv. senior sub. notes 144A (NR)....................... 500,000 689,375
1,000,000 Merrill Lynch & Co., Inc. 2% 2005 medium-term notes (Aa3)
(exch. for Johnson & Johnson common stock).................................. 1,013,450 985,000
625,000 Roche Holdings, Inc. 0% 2015 LYON 144A (NR)
(exch. for Genentech, Inc. common stock).................................... 424,505 558,594
1,000,000 Sepracor, Inc. 7% 2005 cv. notes 144A (CCC+)................................ 1,000,000 1,243,750
250,000 Sepracor, Inc. 7% 2005 cv. notes (CCC+)..................................... 228,750 310,938
500,000 Teva Pharmaceutical Finance, LLC 1.50% 2005 cv. sr. deb. 144A
(BBB-)(exch. for ADRs representing Teva Pharmaceutical
Industries, Ltd. common stock).............................................. 500,369 497,500
---------- ----------
6,224,983 7,447,382
---------- ----------
</TABLE>
<PAGE> 8
<TABLE>
<CAPTION>
Portfolio of Investments October 31, 2000 (continued)
Principal
Amount Identified Value
or Shares Cost (Note 1)
---------- ---------- ----------
<S> <C> <C> <C>
MULTI-INDUSTRY - 1.7%
$2,000,000 Lehman Brothers Holdings, Inc. 0% 2003 BASES notes (A3)(based on the value
of the performance of the 10 Uncommon values Index)......................... $2,053,708 $1,890,000
---------- ----------
RETAIL - 3.5%
1,000,000 Costco Wholesale Corp. 0% 2017 cv. sub. notes 144A (A3)..................... 570,247 883,125
1,250,000 Costco Wholesale Corp. 0% 2017 cv. sub. notes (A3).......................... 1,031,998 1,103,906
32,500 shs Dollar General Trust 8.50% STRYPES * (NR)
(conv. into Dollar General Corp. common stock).............................. 1,065,732 881,563
12,300 shs Estee Lauder Trust $5.40 TRACES II * (NR)
(conv. into Estee Lauder Companies, Inc. common stock)...................... 1,001,136 1,049,344
---------- ----------
3,669,113 3,917,938
---------- ----------
TECHNOLOGY - 14.1%
1,100,000 Affiliated Computer Services 4% 2005 cv. sub. notes 144A (Baa3)............. 1,278,595 1,564,750
1,000,000 Analog Devices, Inc. 4.75% 2005 cv. sub. notes 144A (NR).................... 1,000,000 945,625
1,000,000 CS First Boston, Inc. 2% 2010 medium-term exch. notes (A1)
(exch. for Cisco Systems, Inc. common stock)................................ 1,032,428 1,035,000
1,500,000 CS First Boston, Inc. 1% 2006 medium-term exch. notes (A1)
(exch. for Microsoft Corp. common stock).................................... 1,592,991 1,290,000
1,100,000 Cypress Semiconductor Corp. 3.75% 2005 cv. sub. deb. (B1)................... 1,103,375 977,625
1,000,000 Exchangeable Certificate Corp. 0.25% 2005 medium-term exch. notes 144A
(AAA)(exch. for Intel Corp. common stock)................................... 916,368 833,750
750,000 Exodus Comm., Inc. 4.75% 2008 cv. sub. notes 144A (NR)...................... 750,000 854,531
1,000,000 The Goldman Sachs Group, Inc. 0.25% 2007 medium-term notes (A1)
(exch. for EMC common stock)................................................ 1,000,000 1,258,390
2,000,000 Hewlett-Packard Co. 0% 2017 LYON (Aa3)...................................... 1,183,552 1,403,750
1,000,000 LSI Logic Corp. 4% 2005 cv. sub. notes (B1)................................. 1,118,295 841,250
500,000 Rational Software Corp. 5% 2007 cv. sub. notes 144A (NR).................... 500,000 914,063
1,250,000 Sci Systems, Inc. 3% 2007 cv. sub. notes (Ba1).............................. 1,268,730 1,289,063
1,000,000 Solectron Corp. 0% 2019 LYON (Baa3)......................................... 694,024 711,875
1,200,000 STMicroelectronics, N.V. 0% 2009 LYON (Baa1)................................ 1,002,898 1,734,000
---------- ----------
14,441,256 15,653,672
---------- ----------
TELECOMMUNICATIONS - 14.5%
750,000 American Tower Corp. 5% 2010 cv. sub. deb. 144A (NR)........................ 750,000 745,313
4,000,000 Anixter International, Inc. 0% 2020 LYON 144A (Ba3)......................... 1,054,407 1,030,000
3,000,000 Bell Atlantic Financial Services, Inc. 5.75% 2003 cv. sub. deb. 144A (A1)
(exch. for the cash equiv. of telecom Corp. of New Zealand common stock).... 3,182,069 2,891,250
1,250,000 Covad Comm. Group, Inc. 6% 2005 sr. cv. notes 144A (B3)..................... 1,250,000 610,938
15,000 shs Crown Castle International Corp. 6.25% 2012 cv. pfd. (Caa).................. 750,000 737,813
1,000,000 Exchangeable Certificate Corp. 0.25% 2006 medium-term exch. notes 144A
(AAA)(exch. for specific telephone and cable common stocks**)............... 1,000,000 972,500
1,000,000 First Union National Bank 7% 2002 equity-linked series B notes (AA3)
(linked to the value of QUALCOMM, Inc. common stock)........................ 1,000,000 1,045,000
448 The Goldman Sachs Group, Inc. 8% 2002 YES notes (A1)
(exch. for Brocade Communications Corp. common stock)....................... 999,488 1,008,692
980,000 Level 3 Communications, Inc. 6% 2009 cv. sub. notes (Caa1).................. 944,475 917,525
1,000,000 Liberty Media Corp. 3.75% 2030 sr. exch. deb. 144A (Baa3)
(exch. for Sprint Corporation PCS common stock)............................. 1,000,000 828,750
25,000 MediaOne Group, Inc. 7% 2002 PIES * (A3)
(exch. for ADRs representing Vodafone AirTouch plc common stock)............ 1,106,500 1,021,875
1,750,000 Nextel Communications, Inc. 5.25% 2010 cv. sr. notes 144A (B1).............. 1,756,250 1,491,875
1,500,000 Tecnost International, N.V. 1% 2005 ADBs 144A (Baa2)
(exch. for ADRs representing Telecom Italia S.p.A. common stock)............ 1,332,225 1,314,452
700,000 Tekelec 3.25% 2004 cv. sub. discount notes 144A (NR)........................ 609,338 1,508,938
---------- ----------
16,734,752 16,124,921
---------- ----------
</TABLE>
<PAGE> 9
<TABLE>
<CAPTION>
Portfolio of Investments October 31, 2000 (continued)
Principal Identified Value
Amount Cost (Note 1)
---------- ------------ ------------
<S> <C> <C> <C>
TRANSPORTATION - 1.0%
$1,000,000 United Parcel Service, Inc. 1.75% 2007 cash-settled cv. sr. notes (AAA).... $ 1,000,000 $ 1,030,000
------------ ------------
U.S. TREASURY NOTES - 0.0%
17,000 4.875% 3/31/01 + .......................................................... 16,971 16,894
------------ ------------
CORPORATE SHORT-TERM NOTES - 7.2%
American Express Credit Corp. (P1)
8,000,000 (6.46% - 6.63% maturing 11/1/00)........................................... 7,994,715 7,994,715
------------ ------------
Total Convertible Bonds and Notes - 74.3%................................. 79,322,067 79,615,486
Total Convertible Preferred Stocks - 19.3%................................ 18,295,684 21,434,346
Total Common Stocks - 1.2%................................................ 658,439 1,285,907
Total Corporate Short-Term Notes - 7.2%................................... 7,994,715 7,994,715
------------ ------------
Total Investments - 101.9%................................................ $106,270,905 113,447,462
============ ------------
Other assets and liabilities, net - (1.9)%................................ (2,111,911)
------------
Total Net Assets - 100.0%................................................. $111,335,551
============
</TABLE>
* See Note 1(e).
** Ticker symbols: CSCO, CMCSK, TWX, IBM, LMGa and WCOM.
+ Collateral for a letter of credit.
ACES Automatically Convertible Equity Securities.
ADBs American Depositary Bonds.
ADRs American Depositary Receipts.
BASES Basket Adjusting Structured Equity Securities.
DECS Debt Exchangeable for Common Stock.
FELINE Family of Equity-Linked Income Securities.
HIGH TIDES Remarketable Term Income Deferrable Equity Securities.
LYON Liquid Yield Option Note.
PIERS Preferred Income Equity Redeemable Securities.
PIES Premium Income Exchangeable Securities.
PRIDES Preferred Redeemable Increased Dividend Equity Securities.
SPuRS Shared Preference Redeemable Securities.
STRYPES Structured Yield Product Exchangeable for Stock.
TIDES Term Income Deferrable Equity Securities.
TRACES Trust Automatic Common Exchange Securities.
YES Yield-Enhanced Securities
Ratings in parentheses by Moody's Investors Service, Inc. or Standard & Poor's,
a division of McGraw-Hill Companies, Inc., have been obtained from sources
believed reliable but have not been audited by PricewaterhouseCoopers LLP.
The cost of investments for federal income tax purposes is $106,270,905
resulting in gross unrealized appreciation and depreciation of $13,141,980 and
$5,965,423, respectively, or net unrealized appreciation of $7,176,557 on a tax
cost basis.
See accompanying notes to financial statements.
<PAGE> 10
<TABLE>
<CAPTION>
Statement of Assets and Liabilities
October 31, 2000
----------------
<S> <C>
Assets:
Investments at value (cost $106,270,905) Note 1)....... $113,447,462
Cash................................................... 99,807
Dividends and interest receivable...................... 645,962
Other assets........................................... 21,232
------------
Total assets........................................... 114,214,463
------------
Liabilities:
Payable for securities purchased....................... 2,830,435
Accrued management fee (Note 2)........................ 9,603
Accrued expenses....................................... 38,874
------------
Total liabilities...................................... 2,878,912
------------
Net Assets..................................................... $111,335,551
============
Net assets consist of:
Undistributed net investment income.................... 1,692,419
Undistributed net realized gain from investment
transactions......................................... 12,725,308
Unrealized appreciation on investments................. 7,176,557
Capital shares (Note 3)................................ 41,093
Additional paid-in capital............................. 91,288,288
Treasury stock (Note 3)................................ (1,588,114)
------------
Net Assets..................................................... $111,335,551
============
Net asset value per share ($111,335,551 / 4,109,292
outstanding shares).......................................... $ 27.09
============
</TABLE>
<TABLE>
<CAPTION>
Statement of Operations
For the Year Ended October 31, 2000
<S> <C>
Investment Income (Note 1):
Interest............................................... $ 4,017,596
Dividends.............................................. 1,482,294
-----------
Total Income........................................... 5,499,890
-----------
Expenses (Note 2):
Management fee......................................... 817,341
Custodian.............................................. 40,616
Transfer agent......................................... 49,071
Professional fees...................................... 71,897
Directors'fees......................................... 92,500
Reports to shareholders................................ 33,181
Treasurer's office..................................... 25,000
Other.................................................. 110,414
-----------
Total Expenses......................................... 1,240,020
-----------
Net Investment Income.......................................... 4,259,870
-----------
Realized and Unrealized Gain on Investments:
Net realized gain from investment transactions......... 12,738,109
Net decrease in unrealized appreciation of investments. (1,551,756)
-----------
Net gain on investments................................ 11,186,353
-----------
Net Increase in Net Assets Resulting from Operations... $15,446,223
===========
</TABLE>
See accompanying notes to financial statements.
<PAGE> 11
<TABLE>
<CAPTION>
Statement of Changes in Net Assets
For the Years Ended October 31, 2000 and 1999
2000 1999
------------ ------------
<S> <C> <C>
Increase in net assets from operations:
Net investment income....................................... $ 4,259,870 $ 2,964,542
Net realized gain from investment transactions.............. 12,738,109 10,993,709
Net change in unrealized appreciation of investments........ (1,551,756) 2,228,213
------------ ------------
Net increase in net assets resulting from operations....... 15,446,223 16,186,464
------------ ------------
Dividends to shareholders from:
Net investment income....................................... (3,249,653) (2,912,846)
Net realized gain on investments............................ (10,993,470) (10,224,306)
------------ ------------
Total dividends........................................... (14,243,123) (13,137,152)
------------ ------------
Capital share transactions (Note 3):
Value of shares issued on reinvestment of distributions..... 7,930,327 7,308,248
Cost of shares repurchased.................................. (1,588,689) ---
------------ ------------
Change in net assets resulting from capital share
transactions............................................. 6,341,638 7,308,248
------------ ------------
Increase in net assets........................................ 7,544,738 10,357,560
Net assets at beginning of year............................... 103,790,813 93,433,253
------------ ------------
Net assets at end of year (including undistributed net
investment income of $1,692,419 and $682,203, respectively).. $111,335,551 $103,790,813
============ ============
</TABLE>
<TABLE>
<CAPTION>
Financial Highlights
Selected data for a share of common stock outstanding:
Years Ended October 31,
------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year $27.35 $26.89 $30.48 $28.23 $24.84
------ ------ ------ ------ ------
Net investment income 1.04 0.78 0.87 0.94 0.96
Net realized and unrealized gain (loss) 2.29 3.40 (0.01) 4.55 4.19
------ ------ ------ ------ ------
Total from investment operations 3.33 4.18 0.86 5.49 5.15
Less Distributions:
Dividends from net investment income (0.80) (0.78) (0.88) (0.93) (1.11)
Distributions from realized gains (2.90) (2.94) (3.57) (2.31) (0.65)
------ ------ ------ ------ ------
Total distributions (3.70) (3.72) (4.45) (3.24) (1.76)
Capital share repurchases 0.11 -- -- -- --
------ ------ ------ ------ ------
Net asset value, end of year $27.09 $27.35 $26.89 $30.48 $28.23
====== ====== ====== ====== ======
Market value, end of year $22.63 $22.25 $26.75 $26.81 $23.88
Net assets, end of year ($000's) 111,336 103,791 93,433 96,187 83,302
Based on net asset value * 13.62% 16.36% 3.16% 21.18% 21.55%
Based on market value + 20.63% (2.96%) 18.17% 28.19% 15.65%
Ratios/Supplemental Data:
Ratio of expenses to average net assets 1.1% 1.1% 1.1% 1.20% 1.20%
Ratio of net investment income to average
net assets 3.8% 3.0% 3.0% 3.3% 3.9%
Portfolio turnover rate 93% 72% 55% 71% 70%
</TABLE>
* Assumes valuation of the Fund's shares, and reinvestment of dividends,
at net asset values.
+ Assumes valuation of the Fund's shares at market price and reinvestment
of dividends at actual reinvestment price.
See accompanying notes to financial statements.
<PAGE> 12
Notes to Financial Statements
1. Significant Accounting Policies
Bancroft Convertible Fund, Inc. (the "Fund") is registered under the
Investment Company Act of 1940 as a diversified, closed-end management
investment company. The preparation of financial statements in
conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported
amounts of assets and liabilities at the date of the financial
statements, and the reported amounts of revenue and expenses during the
reporting period. Actual results could differ from those estimates. The
following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements:
(a) Security Valuation
Investments in securities traded on a national securities exchange are
valued at market using the last reported sales price as of the close of
regular trading. Securities traded in the over-the-counter market and
listed securities for which no sales were reported are valued at the
mean between reported bid and asked prices as of the close of regular
trading. Where no closing prices are available, value is determined by
management, with the approval of the Board of Directors.
(b) 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.
(c) 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 or
excise taxes is believed necessary.
(d) Dividends and Distributions to Shareholders
The liability for dividends and distributions payable is recorded on
the ex-dividend date.
(e) Market Risk
It is the Fund's policy to invest the majority 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, certain of the Fund's investments include features which
render them more sensitive to price changes in their underlying
securities. Thus they expose the Fund to greater downside risk than
traditional convertible securities, but still less than that of the
underlying common stock. The market value of those securities was
$18,565,411 at October 31, 2000, representing 16.7% of net assets.
<PAGE> 13
Notes to Financial Statements (continued)
2. Management Fee and Other Transactions with Affiliates
The management fee is paid to the investment adviser, Davis-Dinsmore
Management Company (the "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 and 1% of the excess over $100,000,000 of the average of
the monthly net asset values of the Fund for the year.
The Adviser 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 $25,000 for the year ended October 31, 2000. The officers
of the Fund are also directors, officers or employees of the Adviser,
and are compensated by the Adviser.
3. Capital Stock
At October 31, 2000 there were 4,109,292 shares of $.01 par value
common stock outstanding, (9,000,000 shares authorized). During the
years ended October 31, 2000 and 1999, 390,415 shares and 319,486
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 $7,930,327 and $7,308,248 respectively. In 2000,
75,900 capital shares were purchased for $1,588,689. The amount paid
averaged 22% less than the net asset value of the shares.
A distribution of $3.515 per share, derived from net investment income
of 41.9 cents, and net realized gains on investments of $3.096, was
declared on November 13, 2000, payable December 28, 2000 to
shareholders of record at the close of business November 23, 2000.
4. Portfolio Activity
Purchases and sales of investments, exclusive of corporate short-term
notes, aggregated $96,835,352 and $99,778,407, respectively, for the
year ended October 31, 2000.
<PAGE> 14
Report of Independent Accountants
To the Shareholders and Board of Directors of
Bancroft Convertible Fund, Inc.
In our opinion, the accompanying statement of assets and liabilities,
including the portfolio of investments, and the related statements of
operations and of changes in net assets, and the financial highlights,
present fairly, in all material respects, the financial position of
Bancroft Convertible Fund, Inc. (the "Fund") at October 31, 2000, the
results of its operations for the year then ended, and the changes in
its net assets for each of the two years in the period then ended, and
the financial highlights for each of the five years in the period then
ended, in conformity with accounting principles generally accepted in
the United States of America. These financial statements and financial
highlights (hereafter referred to as "financial statements") are the
responsibility of the Fund's management; our responsibility is to
express an opinion on these financial statements based on our audits.
We conducted our audits of these financial statements in accordance
with auditing standards generally accepted in the United States of
America, which require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant
estimates made by management, and evaluating the overall financial
statement presentation. We believe that our audits, which included
confirmation of securities at October 31, 2000 by correspondence with
the custodian and brokers, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
New York, New York
December 6, 2000
<PAGE> 15
Miscellaneous Notes
Additional Services Available to Shareholders of Bancroft Convertible
Fund, Inc.
AUTOMATIC DIVIDEND INVESTMENT PLAN. You may wish to participate in our
Automatic Dividend Investment Plan whereby all of the dividends and
distributions on your Bancroft shares are automatically invested in
additional shares of the Company's stock at the then current market
price or net asset value, whichever is lower. When the market price is
lower than net asset value, American Stock Transfer & Trust Company
(AST) will take your dividends or distributions in cash, combine them
with those of other Plan participants, and purchase shares in the
market and thereby take advantage of the lower commissions on larger
purchases. When the net asset value is lower than the market price, the
participant will receive shares issued by the Company at net asset
value. When the Company makes dividends and distributions payable in
cash or at the option of all stockholders in common stock, a
participant will receive shares of common stock issued by the Company.
There is no other charge for this service. Further details regarding
the Plan may be found on the Authorization Form on pages 15 and 16 of
this report. To join the Plan, fill out and mail the form.
CASH PAYMENT PLAN. Members of the Automatic Dividend Investment Plan
may also wish to participate in our Cash Payment Plan which provides a
convenient and economical means to increase your investment in the
Company's shares. The Cash Payment Plan permits you to send cash
payments of between $25 to $5,000 per month to AST, which will be
aggregated with the funds of other participants, to purchase additional
Bancroft shares. You pay only a service charge ($1.25 per transaction)
plus your proportionate share of the brokerage commission which is
typically at a savings because your funds are combined with others to
take advantage of the reduced commission on larger purchases.
For additional information regarding either of these plans please call
American Stock Transfer & Trust Company at (800) 937-5449.
------------------------------------------------------------------------
Important Factors Regarding Forward-Looking Statements
Information contained within the letter to Shareholders constitutes
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. Statements which reflect the intent,
belief or expectations of the Company and its management regarding the
anticipated effect of events, circumstances and trends should be
considered forward-looking statements. These forward-looking statements
are not guarantees of future performance and there are a number of
meaningful factors which could cause the Company's results to vary
materially from those indicated by any such statements. Factors which
could cause actual results to differ from expectations include, among
others, changes in individuals' savings rates or investment choices, a
decline in productivity, an increase in inflation or taxes, stable or
increasing interest rates, changes to foreign and domestic markets and
economies in general or changes to the market for convertible
securities.
<PAGE> 16
Miscellaneous Notes (continued)
Visit us on the Internet at www.bancroftfund.com. The site provides
information about the Fund including daily net asset values (NAV),
historical dividends and press releases, as well as information about
Davis-Dinsmore Management Company, the Fund's adviser. In addition you
can email us at [email protected].
------------------------------------------------------------------------
Bancroft is a member of the Closed-End Fund Association (CEFA). Its
website address is www.cefa.com. CEFA is solely responsible for the
content of its website.
------------------------------------------------------------------------
The Company amended its bylaws during fiscal 2000 to include provisions
for nominations of directors and proposals by shareholders. For
nominations or other business to be properly brought before a meeting
of shareholders, a shareholder must provide written notice to the
secretary of the Company not later than the close of business on the
90th day nor earlier than the close of business on the 120th day prior
to the first anniversary of the preceding year's annual meeting. If a
shareholder proposes to nominate an individual for election as a
director, such notice must include the business experience of the
individual and any other information that may be relevant to the
Nominating and Administration Committee's decision of whether to
nominate the individual. If the shareholder proposes to bring any
other business before the meeting, such notice shall set forth a brief
description of the business desired to be brought before the meeting
and the shareholder's reasons for proposing such business.
This provision does not affect a shareholder's rights to submit a
proposal for consideration for inclusion in the Company's proxy
statement pursuant to Rule 14a-8 under the Securities Exchange Act of
1934, as amended.
------------------------------------------------------------------------
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
Bancroft Convertible 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.
<PAGE> 17
Bancroft Convertible Fund, Inc.
Automatic Dividend Investment Plan
Authorization Form
c/o American Stock Transfer & Trust Company
40 Wall Street, 46th Floor
New York, NY 10005
Dear Sirs:
I hold stock certificates, registered in my name, for. . . . . . . . . . .
shares of Common Stock of Bancroft Convertible Fund, Inc. (the
"Company").
I wish to invest all the dividends and distributions paid by the
Company on my shares automatically in additional shares from the date
hereof until this arrangement is terminated as stated below.
Authorization
You are authorized to act as my agent as follows:
A. Establish an Account in my name.
B. Take into my Account all dividends and distributions paid by the
Company on all its Common Stock held in my name now or in the future
and on all additional shares of the Company (including fractions) held
by you in my Account.
C. Whenever the Company declares a dividend or distribution payable in
cash or, at the option of all its shareholders, in Common Stock of the
Company at market price or net asset value, whichever is lower, take
the dividend or distribution in Common Stock.
D. Whenever the Company declares a dividend or distribution payable in
cash or, at the option of the shareholders for whom you act as agent
under the Plan, in the Company's Common Stock at net asset value, take
the dividend or distribution in Common Stock if the net asset value as
determined by the Company as of the close of business on the last
trading day preceding the date of payment is lower than (1) the asked
price of the Company's Common Stock in the over-the-counter market, as
reported by the National Quotation Bureau, if the Common Stock is not
listed on a national securities exchange, or (2) the closing market
price of the Common Stock on a national securities exchange, on that
trading day, plus brokerage commissions, if the Company's Common Stock
is listed on such exchange. If the market price is lower, take the
dividend or distribution in cash and add it to my Account.
E. As soon as practicable after each cash payment is made to my
Account, use the funds in my Account to buy in the over-the-counter
market or on a national securities exchange, as the case may be, as
many additional full shares of the Company's Common Stock as possible,
plus a fractional interest in one share computed to three decimal
places.
F. You may mingle the cash in my Account with similar funds of other
shareholders of the Company for whom you act as agent under the Plan.
The cost of the shares and fractional interest you buy for my Account
in connection with a particular dividend or distribution shall be
determined by the average cost per share, including brokerage
commission, of all shares bought by you for all shareholders for whom
you act under the Plan in connection with that dividend or
distribution.
G. Whenever you receive or purchase shares or fractional interests for
my Account, you will send me confirmation of the transaction as soon as
practicable. You will hold such shares and fractional interests as my
agent in your name or the name of your nominee. Do not send me stock
certificates for full shares until I so request in writing or until my
Account is terminated as stated below. You will vote any shares so held
for me in accordance with any proxy returned to the Company by me in
respect of the shares of which I am a record owner.
H. I understand that there is presently no service charge for your
serving as my agent and maintaining my Account. You may, however,
charge me for extra services performed at my request. I further
understand that the Company reserves the right to amend the Plan in the
future to impose a service charge. You will be liable only for willful
misconduct or gross negligence in acting as my agent under the Plan.
(over)
<PAGE> 18
Name and Address
My name as shown on my Common Stock certificate or certificates
(including all names if more than one) and my address, are as follows:
Please Print:
NAME OR NAMES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
NUMBER AND STREET . . . . . . . . . . . . . . . . . . . . . . . . . . . .
CITY, STATE AND ZIP CODE. . . . . . . . . . . . . . . . . . . . . . . . .
Stock Certificates
I understand that if I hold more than one Common Stock certificate
registered in similar but not identical names or if more than one
address is shown for me on the Company's Common Stock records, all my
shares of Common Stock must be put into the same name and address prior
to signing this authorization if all of them are to be covered by one
Account. I understand that additional shares subsequently acquired by
me otherwise than through the Plan will be covered by my Account if and
when they are registered in the same name and address as the shares in
my Account.
Income Tax
I understand that participation in the Plan for automatic investment of
dividends and distributions does not relieve me of any income tax which
may be payable by me on such dividends and distributions.
Amendments and Change of Agent
I understand that the Company may amend the terms of the Plan and
reserves the right to change the agent which acts for all participants
in the Plan at any time by giving written notice thereof to each
participant at his address as shown on your records. Any such change
shall be effective as to all dividends and distributions payable to
shareholders of record on any date more than 30 days after mailing of
such notice. Further, I understand that the Company in connection with
any dividend or distribution will change the price at which shares of
its Common Stock are issued to participants in the Plan if the net
asset value of the shares is less than 95% of the fair market value of
such shares on the last trading day preceding the payment date of any
distribution of net investment income or net capital gain, unless the
Board obtains a legal opinion from independent counsel that the
purchase of shares at net asset value under these circumstances will
not have a material adverse effect upon the federal income tax
liability of the Company. The Board may not authorize issuance of
shares offered to Plan participants only, if such issuance is at a
price less than net asset value, without the prior specific approval of
the Company's stockholders or of the Securities and Exchange
Commission.
Termination
I may terminate this authorization and my Account at any time by
delivering written notice to you, such termination to be effective as
to all dividends and distributions payable to shareholders of record on
any date more than 15 days after receipt of such notice by you. I
understand that you or the Company may terminate all authorizations for
any reason at any time by sending written notice addressed to
participants at their addresses as shown on your records, such
termination to be effective as to all dividends and distributions
payable to shareholders of record on any date more than 30 days after
mailing of such notice. I understand you will terminate my Account if
you are informed of the transfer of all shares of the Company's Common
Stock registered in my name. Following the date of termination, you
shall send me at my address shown on your records a stock certificate
or certificates for the full shares held by you in my Account and a
check for the value of any fractional interest in my Account based on
the market price of the Company's Common Stock on that date.
Signature(s) . . . . . . . . . . . . . . . . . . . . . Date . . . . . . . . . .
Note: If shares are in more than one name, all must sign.
(over)
<PAGE> 19
Board of Directors
GORDON F. AHALT Petroleum Consultant
WILLIAM A. BENTON Retired Stock Exchange Specialist
ELIZABETH C. BOGAN Senior Lecturer in Economics at Princeton University
THOMAS H. DINSMORE, C.F.A. Chairman of the Board of Bancroft
DONALD M. HALSTED, JR. Investor
GEORGE R. LIEBERMAN Retired Advertising Executive
DUNCAN O. MCKEE Retired Attorney
JANE D. O'KEEFFE President of Bancroft
NICOLAS W. PLATT Public Relations Executive
Officers
THOMAS H. DINSMORE Chairman of the Board
JANE D. O'KEEFFE President
SIGMUND LEVINE Senior Vice President and Secretary
H. TUCKER LAKE Vice President, Trading
GERMAINE M. ORTIZ Vice President
GARY I. LEVINE Treasurer and Assistant Secretary
MERCEDES A. PIERRE Assistant Treasurer
-------------------------------------------------------------------------------
Internet
http://www.bancroftfund.com
email: [email protected]
Investment Adviser
Davis-Dinsmore Management Company
65 Madison Avenue, Morristown, NJ 07960-7308
(973) 631-1177
Shareholder Services and Transfer Agent
American Stock Transfer & Trust Company
40 Wall Street, 46th Floor
New York, NY 10005
(800) 937-5449
www.amstock.com
Common Stock Listing
American Stock Exchange Symbol: BCV
<PAGE> 20
Bancroft Convertible Fund, Inc.
65 MADISON AVENUE
MORRISTOWN, NEW JERSEY 07960
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