Bancroft Fund: This 8%-Yielding CEF Provides Some Income, But It's Nothing Special

Kameleon007 The Bancroft Fund ( NYSE: BCV ) is a little-known closed-end fund aka CEF that provides an option for income-focused investors to achieve their goals. The fund manages to do fairly well at this task, as it currently boasts an 8.17% yield.

This is a much higher yield than that offered by most indices, although it is not especially high when compared to other closed-end funds that use a similar investment strategy: Fund Name Morningstar Classification Current Yield Bancroft Fund Fixed Income-Taxable-Convertibles 8.17% Advent Convertible & Income Fund ( AVK ) Fixed Income-Taxable-Convertibles 11.84% Calamos Convertible Opportunities and Income Fund ( CHI ) Fixed Income-Taxable-Convertibles 10.

12% Ellsworth Growth and Income Fund Ltd ( ECF ) Fixed Income-Taxable-Convertibles 6.40% High Income Securities Fund ( PCF ) Fixed Income-Taxable-Convertibles 11.12% Virtus Convertible & Income Fund ( NCV ) Fixed Income-Taxable-Convertibles 12.

71% Click to enlarge The fact that the Bancroft Fund invests in convertible securities means that investors do not have to sacrifice all the upside potential that would otherwise be required to earn a high level of income. After all, most of the highest-yielding funds in the market right now are leveraged loan funds, and those have very limited potential for capital appreciation due to the inherent price stability of their assets. An investment in convertible securities, on the other hand, allows the fund to realize unlimited capital gains.