p82126582-2008.htm -- Converted by SEC Publisher, created by BCL Technologies Inc., for SEC Filing
        Chubb Group of Insurance Companies    DECLARATIONS         
                        FINANCIAL INSTITUTION INVESTMENT 
        15 Mountain View Road, Warren, New Jersey 07059        COMPANY ASSET PROTECTION BOND 
 
 
 NAME OF ASSURED (including its Subsidiaries):        Bond Number: 82126582         
 
 BANCROFT FUND LTD.                             
                        FEDERAL INSURANCE COMPANY 
 
 65 MADISON AVENUE, SUITE 550            Incorporated under the laws of Indiana     
 MORRISTOWN, NJ 07960                a stock insurance company herein called the COMPANY 
                        Capital Center, 251 North Illinois, Suite 1100 
                        Indianapolis, IN 46204-1927         
 
 
 ITEM 1.     BOND PERIOD:    from    12:01 a.m. on    May 1, 2008                 
                 to    12:01 a.m. on    May 1, 2009                 
 
 ITEM 2.     LIMITS OF LIABILITY--DEDUCTIBLE AMOUNTS:                 
 
     If “Not Covered” is inserted below opposite any specified INSURING CLAUSE, such INSURING CLAUSE 
     and any other reference shall be deemed to be deleted. There shall be no deductible applicable to any 
     loss under INSURING CLAUSE 1. sustained by any Investment Company.         
 
                                DEDUCTIBLE 
     INSURING CLAUSE               LIMIT OF LIABILITY       AMOUNT 
     1.       Employee                   $ 1,050,000.    $ 0. 
     2.       On Premises                   $ 1,050,000.    $ 50,000. 
     3.       In Transit                   $ 1,050,000.    $ 50,000. 
     4.       Forgery or Alteration               $ 1,050,000.    $ 50,000. 
     5.       Extended Forgery               $ 1,050,000.    $ 50,000. 
     6.       Counterfeit Money               $ 1,050,000.    $ 50,000. 
     7.       Threats to Person               $ 1,050,000.    $ 50,000. 
     8.       Computer System               $ 1,050,000.    $ 50,000. 
     9.       Voice Initiated Funds Transfer Instruction       $ 1,050,000.    $ 50,000. 
    10.       Uncollectible Items of Deposit           $ 250,000.    $ 5,000. 
    11.       Audit Expense                   $ 250,000.    $ 5,000. 
 
ITEM 3.    THE LIABILITY OF THE COMPANY IS ALSO SUBJECT TO THE TERMS OF THE FOLLOWING 
    ENDORSEMENTS EXECUTED SIMULTANEOUSLY HEREWITH:             
    Endorsement Nos. 1 - 5                         
 
IN WITNESS WHEREOF, THE COMPANY has caused this Bond to be signed by its authorized officers, but it shall not be 
valid unless also signed by an authorized representative of the Company.             


ICAP Bond (5-98) - Federal   
Form 17-02-1421 (Ed. 5-98)  Page 1 of 1 

    The COMPANY, in consideration of payment of the required premium, and in reliance 
    on the APPLICATION and all other statements made and information furnished to the 
    COMPANY by the ASSURED, and subject to the DECLARATIONS made a part of this 
    Bond and to all other terms and conditions of this Bond, agrees to pay the ASSURED 
    for:             
 
 
Insuring Clauses                 
 
 
Employee    1.    Loss resulting directly from Larceny or Embezzlement committed by any 
        Employee, alone or in collusion with others. 
 
 
 
On Premises    2.    Loss of Property resulting directly from robbery, burglary, false pretenses, 
        common law or statutory larceny, misplacement, mysterious unexplainable 
        disappearance, damage, destruction or removal, from the possession, custody or 
        control of the ASSURED, while such Property is lodged or deposited at premises 
        located anywhere. 
 
 
In Transit    3.    Loss of Property resulting directly from common law or statutory larceny, 
        misplacement, mysterious unexplainable disappearance, damage or destruction, 
        while the Property is in transit anywhere: 
 
        a.    in an armored motor vehicle, including loading and unloading thereof, 
 
        b.    in the custody of a natural person acting as a messenger of the ASSURED, 
            or     
 
        c.    in the custody of a Transportation Company and being transported in a 
            conveyance other than an armored motor vehicle provided, however, that 
            covered Property transported in such manner is limited to the following: 
 
            (1)    written records, 
 
            (2)    securities issued in registered form, which are not endorsed or are 
                restrictively endorsed, or 
 
            (3)    negotiable instruments not payable to bearer, which are not endorsed 
                or are restrictively endorsed. 
 
        Coverage under this INSURING CLAUSE begins immediately on the receipt of 
        such Property by the natural person or Transportation Company and ends 
        immediately on delivery to the premises of the addressee or to any representative 
        of the addressee located anywhere. 

ICAP Bond (5-98)   
Form 17-02-1421 (Ed. 5-98)  Page 1 of 19 

Insuring Clauses                 
(continued)                 
 
 
Forgery Or Alteration    4.    Loss resulting directly from: 
        a.    Forgery on, or fraudulent material alteration of, any bills of exchange, 
            checks, drafts, acceptances, certificates of deposits, promissory notes, due 
            bills, money orders, orders upon public treasuries, letters of credit, other 
            written promises, orders or directions to pay sums certain in money, or 
            receipts for the withdrawal of Property, or 
 
        b.    transferring, paying or delivering any funds or other Property, or establishing 
            any credit or giving any value in reliance on any written instructions, advices 
            or applications directed to the ASSURED authorizing or acknowledging the 
            transfer, payment, delivery or receipt of funds or other Property, which 
            instructions, advices or applications fraudulently purport to bear the 
            handwritten signature of any customer of the ASSURED, or shareholder or 
            subscriber to shares of an Investment Company, or of any financial 
            institution or Employee but which instructions, advices or applications either 
            bear a Forgery or have been fraudulently materially altered without the 
            knowledge and consent of such customer, shareholder, subscriber, financial 
            institution or Employee; 
 
        excluding, however, under this INSURING CLAUSE any loss covered under 
        INSURING CLAUSE 5. of this Bond, whether or not coverage for INSURING 
        CLAUSE 5. is provided for in the DECLARATIONS of this Bond. 
        For the purpose of this INSURING CLAUSE, a mechanically reproduced facsimile 
        signature is treated the same as a handwritten signature. 
 
 
Extended Forgery    5.    Loss resulting directly from the ASSURED having, in good faith, and in the 
        ordinary course of business, for its own account or the account of others in any 
        capacity:     
 
        a.    acquired, accepted or received, accepted or received, sold or delivered, or 
            given value, extended credit or assumed liability, in reliance on any original 
            Securities, documents or other written instruments which prove to: 
 
            (1)    bear a Forgery or a fraudulently material alteration, 
 
            (2)    have been lost or stolen, or 
            (3)    be Counterfeit, or 
 
        b.    guaranteed in writing or witnessed any signatures on any transfer, 
            assignment, bill of sale, power of attorney, guarantee, endorsement or other 
            obligation upon or in connection with any Securities, documents or other 
            written instruments. 
 
        Actual physical possession, and continued actual physical possession if taken as 
        collateral, of such Securities, documents or other written instruments by an 
        Employee, Custodian, or a Federal or State chartered deposit institution of the 
        ASSURED is a condition precedent to the ASSURED having relied on such items. 
        Release or return of such collateral is an acknowledgment by the ASSURED that it 
        no longer relies on such collateral. 

ICAP Bond (5-98)   
Form 17-02-1421 (Ed. 5-98)  Page 2 of 19 

Insuring Clauses                 
 
 
Extended Forgery        For the purpose of this INSURING CLAUSE, a mechanically reproduced facsimile 
(continued)        signature is treated the same as a handwritten signature. 
 
 
Counterfeit Money    6.    Loss resulting directly from the receipt by the ASSURED in good faith of any 
        Counterfeit money. 
 
 
Threats To Person    7.    Loss resulting directly from surrender of Property away from an office of the 
        ASSURED as a result of a threat communicated to the ASSURED to do bodily 
        harm to an Employee as defined in Section 1.e. (1), (2) and (5), a Relative or 
        invitee of such Employee, or a resident of the household of such Employee, who 
        is, or allegedly is, being held captive provided, however, that prior to the surrender 
        of such Property: 
        a.    the Employee who receives the threat has made a reasonable effort to 
            notify an officer of the ASSURED who is not involved in such threat, and 
        b.    the ASSURED has made a reasonable effort to notify the Federal Bureau of 
            Investigation and local law enforcement authorities concerning such threat. 
        It is agreed that for purposes of this INSURING CLAUSE, any Employee of the 
        ASSURED, as set forth in the preceding paragraph, shall be deemed to be an 
        ASSURED hereunder, but only with respect to the surrender of money, securities 
        and other tangible personal property in which such Employee has a legal or 
        equitable interest. 
 
 
Computer System    8.    Loss resulting directly from fraudulent: 
        a.    entries of data into, or 
        b.    changes of data elements or programs within, 
        a Computer System, provided the fraudulent entry or change causes: 
 
            (1)    funds or other property to be transferred, paid or delivered, 
            (2)    an account of the ASSURED or of its customer to be added, deleted, 
                debited or credited, or 
            (3)    an unauthorized account or a fictitious account to be debited or 
                credited. 

ICAP Bond (5-98)   
Form 17-02-1421 (Ed. 5-98)  Page 3 of 19 

Insuring Clauses             
(continued)             
 
 
Voice Initiated Funds    9.    Loss resulting directly from Voice Initiated Funds Transfer Instruction directed 
Transfer Instruction        to the ASSURED authorizing the transfer of dividends or redemption proceeds of 
        Investment Company shares from a Customer's account, provided such Voice 
        Initiated Funds Transfer Instruction was: 
        a.    received at the ASSURED'S offices by those Employees of the ASSURED 
            specifically authorized to receive the Voice Initiated Funds Transfer 
            Instruction, 
        b.    made by a person purporting to be a Customer, and 
        c.    made by said person for the purpose of causing the ASSURED or Customer 
            to sustain a loss or making an improper personal financial gain for such 
            person or any other person. 
        In order for coverage to apply under this INSURING CLAUSE, all Voice Initiated 
        Funds Transfer Instructions must be received and processed in accordance with 
        the Designated Procedures outlined in the APPLICATION furnished to the 
        COMPANY. 
 
 
Uncollectible Items of    10.    Loss resulting directly from the ASSURED having credited an account of a 
Deposit        customer, shareholder or subscriber on the faith of any Items of Deposit which 
        prove to be uncollectible, provided that the crediting of such account causes: 
        a.    redemptions or withdrawals to be permitted, 
        b.    shares to be issued, or 
        c.    dividends to be paid, 
        from an account of an Investment Company. 
        In order for coverage to apply under this INSURING CLAUSE, the ASSURED 
        must hold Items of Deposit for the minimum number of days stated in the 
        APPLICATION before permitting any redemptions or withdrawals, issuing any 
        shares or paying any dividends with respect to such Items of Deposit. 
        Items of Deposit shall not be deemed uncollectible until the ASSURED'S 
        standard collection procedures have failed. 
 
 
Audit Expense    11.    Expense incurred by the ASSURED for that part of the cost of audits or 
        examinations required by any governmental regulatory authority or self-regulatory 
        organization to be conducted by such authority, organization or their appointee by 
        reason of the discovery of loss sustained by the ASSURED and covered by this 
        Bond. 

ICAP Bond (5-98)   
Form 17-02-1421 (Ed. 5-98)  Page 4 of 19 

General Agreements             
 
 
Additional Companies    A.    If more than one corporation, or Investment Company, or any combination of 
Included As Assured        them is included as the ASSURED herein: 
        (1)    The total liability of the COMPANY under this Bond for loss or losses 
            sustained by any one or more or all of them shall not exceed the limit for 
            which the COMPANY would be liable under this Bond if all such loss were 
            sustained by any one of them. 
 
        (2)    Only the first named ASSURED shall be deemed to be the sole agent of the 
            others for all purposes under this Bond, including but not limited to the giving 
            or receiving of any notice or proof required to be given and for the purpose of 
            effecting or accepting any amendments to or termination of this Bond. The 
            COMPANY shall furnish each Investment Company with a copy of the 
            Bond and with any amendment thereto, together with a copy of each formal 
            filing of claim by any other named ASSURED and notification of the terms of 
            the settlement of each such claim prior to the execution of such settlement. 
 
        (3)    The COMPANY shall not be responsible for the proper application of any 
            payment made hereunder to the first named ASSURED. 
 
        (4)    Knowledge possessed or discovery made by any partner, director, trustee, 
            officer or supervisory employee of any ASSURED shall constitute knowledge 
            or discovery by all the ASSUREDS for the purposes of this Bond. 
 
        (5)    If the first named ASSURED ceases for any reason to be covered under this 
            Bond, then the ASSURED next named on the APPLICATION shall thereafter 
            be considered as the first named ASSURED for the purposes of this Bond. 
 
 
Representation Made By    B.    The ASSURED represents that all information it has furnished in the 
Assured        APPLICATION for this Bond or otherwise is complete, true and correct. Such 
        APPLICATION and other information constitute part of this Bond. 
 
        The ASSURED must promptly notify the COMPANY of any change in any fact or 
        circumstance which materially affects the risk assumed by the COMPANY under 
        this Bond. 
 
        Any intentional misrepresentation, omission, concealment or incorrect statement of 
        a material fact, in the APPLICATION or otherwise, shall be grounds for recision of 
        this Bond. 

ICAP Bond (5-98)   
Form 17-02-1421 (Ed. 5-98)  Page 5 of 19 

General Agreements             
(continued)             
 
 
Additional Offices Or    C.    If the ASSURED, other than an Investment Company, while this Bond is in force, 
Employees - Consolidation,        merges or consolidates with, or purchases or acquires assets or liabilities of 
Merger Or Purchase Or        another institution, the ASSURED shall not have the coverage afforded under this 
Acquisition Of Assets Or        Bond for loss which has: 
Liabilities - Notice To        (1)    occurred or will occur on premises, or 
Company             
        (2)    been caused or will be caused by an employee, or 
        (3)    arisen or will arise out of the assets or liabilities, 
        of such institution, unless the ASSURED: 
        a.    gives the COMPANY written notice of the proposed consolidation, merger or 
            purchase or acquisition of assets or liabilities prior to the proposed effective 
            date of such action, and 
        b.    obtains the written consent of the COMPANY to extend some or all of the 
            coverage provided by this Bond to such additional exposure, and 
        c.    on obtaining such consent, pays to the COMPANY an additional premium. 
 
 
Change Of Control -    D.    When the ASSURED learns of a change in control (other than in an Investment 
Notice To Company        Company), as set forth in Section 2(a) (9) of the Investment Company Act of 
        1940,     the ASSURED shall within sixty (60) days give written notice to the 
        COMPANY setting forth: 
        (1)    the names of the transferors and transferees (or the names of the beneficial 
            owners if the voting securities are registered in another name), 
        (2)    the total number of voting securities owned by the transferors and the 
            transferees (or the beneficial owners), both immediately before and after the 
            transfer, and 
        (3)    the total number of outstanding voting securities. 
        Failure to give the required notice shall result in termination of coverage for any 
        loss involving a transferee, to be effective on the date of such change in control. 
 
 
Court Costs And    E.    The COMPANY will indemnify the ASSURED for court costs and reasonable 
Attorneys’ Fees        attorneys' fees incurred and paid by the ASSURED in defense, whether or not 
        successful, whether or not fully litigated on the merits and whether or not settled, 
        of any claim, suit or legal proceeding with respect to which the ASSURED would 
        be entitled to recovery under this Bond. However, with respect to INSURING 
        CLAUSE 1., this Section shall only apply in the event that: 
        (1)    an Employee admits to being guilty of Larceny or Embezzlement, 
        (2)    an Employee is adjudicated to be guilty of Larceny or Embezzlement, or 

ICAP Bond (5-98)   
Form 17-02-1421 (Ed. 5-98)  Page 6 of 19 

General Agreements         
 
 
Court Costs And    (3)       in the absence of 1 or 2 above, an arbitration panel agrees, after a review of 
Attorneys’ Fees           an agreed statement of facts between the COMPANY and the ASSURED, 
(continued)           that an Employee would be found guilty of Larceny or Embezzlement if 
           such Employee were prosecuted. 
 
    The ASSURED shall promptly give notice to the COMPANY of any such suit or 
    legal proceeding and at the request of the COMPANY shall furnish copies of all 
    pleadings and pertinent papers to the COMPANY. The COMPANY may, at its 
    sole option, elect to conduct the defense of all or part of such legal proceeding. 
    The defense by the COMPANY shall be in the name of the ASSURED through 
    attorneys selected by the COMPANY. The ASSURED shall provide all reasonable 
    information and assistance as required by the COMPANY for such defense. 
 
    If the COMPANY declines to defend the ASSURED, no settlement without the 
    prior written consent of the COMPANY nor judgment against the ASSURED shall 
    determine the existence, extent or amount of coverage under this Bond. 
 
    If the amount demanded in any such suit or legal proceeding is within the 
    DEDUCTIBLE AMOUNT, if any, the COMPANY shall have no liability for court 
    costs and attorney's fees incurred in defending all or part of such suit or legal 
    proceeding. 
 
    If the amount demanded in any such suit or legal proceeding is in excess of the 
    LIMIT OF LIABILITY stated in ITEM 2. of the DECLARATIONS for the applicable 
    INSURING CLAUSE, the COMPANY'S liability for court costs and attorney's fees 
    incurred in defending all or part of such suit or legal proceedings is limited to the 
    proportion of such court costs and attorney's fees incurred that the LIMIT OF 
    LIABILITY stated in ITEM 2. of the DECLARATIONS for the applicable INSURING 
    CLAUSE bears to the total of the amount demanded in such suit or legal 
    proceeding. 
 
    If the amount demanded is any such suit or legal proceeding is in excess of the 
    DEDUCTIBLE AMOUNT, if any, but within the LIMIT OF LIABILITY stated in ITEM 
    2.    of the DECLARATIONS for the applicable INSURING CLAUSE, the 
    COMPANY'S liability for court costs and attorney's fees incurred in defending all or 
    part of such suit or legal proceedings shall be limited to the proportion of such 
    court costs or attorney's fees that the amount demanded that would be payable 
    under this Bond after application of the DEDUCTIBLE AMOUNT, bears to the total 
    amount demanded. 
 
    Amounts paid by the COMPANY for court costs and attorneys' fees shall be in 
    addition to the LIMIT OF LIABILITY stated in ITEM 2. of the DECLARATIONS. 

ICAP Bond (5-98)   
Form 17-02-1421 (Ed. 5-98)  Page 7 of 19 

Conditions And                 
Limitations                 
 
 
Definitions    1.    As used in this Bond: 
        a.    Computer System means a computer and all input, output, processing, 
            storage, off-line media libraries, and communication facilities which are 
            connected to the computer and which are under the control and supervision 
            of the operating system(s) or application(s) software used by the ASSURED. 
 
        b.    Counterfeit means an imitation of an actual valid original which is intended 
            to deceive and be taken as the original. 
 
        c.    Custodian means the institution designated by an Investment Company to 
            maintain possession and control of its assets. 
        d.    Customer means an individual, corporate, partnership, trust customer, 
            shareholder or subscriber of an Investment Company which has a written 
            agreement with the ASSURED for Voice Initiated Funds Transfer 
            Instruction. 
 
        e.    Employee means: 
 
            (1)    an officer of the ASSURED, 
 
            (2)    a natural person while in the regular service of the ASSURED at any of 
                the ASSURED'S premises and compensated directly by the ASSURED 
                through its payroll system and subject to the United States Internal 
                Revenue Service Form W-2 or equivalent income reporting plans of 
                other countries, and whom the ASSURED has the right to control and 
                direct both as to the result to be accomplished and details and means 
                by which such result is accomplished in the performance of such 
                service, 
 
            (3)    a guest student pursuing studies or performing duties in any of the 
                ASSURED'S premises, 
 
            (4)    an attorney retained by the ASSURED and an employee of such 
                attorney while either is performing legal services for the ASSURED, 
 
            (5)    a natural person provided by an employment contractor to perform 
                employee duties for the ASSURED under the ASSURED'S supervision 
                at any of the ASSURED'S premises, 
 
            (6)    an employee of an institution merged or consolidated with the 
                ASSURED prior to the effective date of this Bond, 
 
            (7)    a director or trustee of the ASSURED, but only while performing acts 
                within the scope of the customary and usual duties of any officer or 
                other employee of the ASSURED or while acting as a member of any 
                committee duly elected or appointed to examine or audit or have 
                custody of or access to Property of the ASSURED, or 

ICAP Bond (5-98)   
Form 17-02-1421 (Ed. 5-98)  Page 8 of 19 

Conditions And             
Limitations             
 
 
Definitions    (8)    each natural person, partnership or corporation authorized by written 
(continued)        agreement with the ASSURED to perform services as electronic data 
        processor of checks or other accounting records related to such checks but 
        only while such person, partnership or corporation is actually performing 
        such services and not: 
 
        a.    creating, preparing, modifying or maintaining the ASSURED'S 
            computer software or programs, or 
 
        b.    acting as transfer agent or in any other agency capacity in issuing 
            checks, drafts or securities for the ASSURED, 
 
    (9)    any partner, officer or employee of an investment advisor, an underwriter 
        (distributor), a transfer agent or shareholder accounting recordkeeper, or an 
        administrator, for an Investment Company while performing acts coming 
        within the scope of the customary and usual duties of an officer or employee 
        of an Investment Company or acting as a member of any committee duly 
        elected or appointed to examine, audit or have custody of or access to 
        Property of an Investment Company. 
 
        The term Employee shall not include any partner, officer or employee of a 
        transfer agent, shareholder accounting recordkeeper or administrator: 
 
        a.    which is not an "affiliated person" (as defined in Section 2(a) of the 
            Investment Company Act of 1940) of an Investment Company or of 
            the investment advisor or underwriter (distributor) of such Investment 
            Company, or 
 
        b.    which is a "bank" (as defined in Section 2(a) of the Investment 
            Company Act of 1940). 
            This Bond does not afford coverage in favor of the employers of 
            persons as set forth in e. (4), (5) and (8) above, and upon payment to 
            the ASSURED by the COMPANY resulting directly from Larceny or 
            Embezzlement committed by any of the partners, officers or 
            employees of such employers, whether acting alone or in collusion with 
            others, an assignment of such of the ASSURED'S rights and causes of 
            action as it may have against such employers by reason of such acts 
            so committed shall, to the extent of such payment, be given by the 
            ASSURED to the COMPANY, and the ASSURED shall execute all 
            papers necessary to secure to the COMPANY the rights provided for 
            herein. 
 
        Each employer of persons as set forth in e.(4), (5) and (8) above and the 
        partners, officers and other employees of such employers shall collectively 
        be deemed to be one person for all the purposes of this Bond; excepting, 
        however, the fifth paragraph of Section 13. 
 
        Independent contractors not specified in e.(4), (5) or (8) above, 
        intermediaries, agents, brokers or other representatives of the same general 
        character shall not be considered Employees. 

ICAP Bond (5-98)   
Form 17-02-1421 (Ed. 5-98)  Page 9 of 19 

Conditions And         
Limitations         
 
 
Definitions    f.    Forgery means the signing of the name of another natural person with the 
(continued)        intent to deceive but does not mean a signature which consists in whole or in 
        part of one's own name, with or without authority, in any capacity for any 
        purpose. 
    g.    Investment Company means any investment company registered under the 
        Investment Company Act of 1940 and listed under the NAME OF ASSURED 
        on the DECLARATIONS. 
 
    h.    Items of Deposit means one or more checks or drafts drawn upon a 
        financial institution in the United States of America. 
    i.    Larceny or Embezzlement means larceny or embezzlement as defined in 
        Section 37 of the Investment Company Act of 1940. 
 
    j.    Property means money, revenue and other stamps; securities; including any 
        note, stock, treasury stock, bond, debenture, evidence of indebtedness, 
        certificate of deposit, certificate of interest or participation in any profit- 
        sharing agreement, collateral trust certificate, preorganization certificate or 
        subscription, transferable share, investment contract, voting trust certificate, 
        certificate of deposit for a security, fractional undivided interest in oil, gas, or 
        other mineral rights, any interest or instruments commonly known as a 
        security under the Investment Company Act of 1940, any other certificate of 
        interest or participation in, temporary or interim certificate for, receipt for, 
        guarantee of, or warrant or right to subscribe to or purchase any of the 
        foregoing; bills of exchange; acceptances; checks; withdrawal orders; money 
        orders; travelers' letters of credit; bills of lading; abstracts of title; insurance 
        policies, deeds, mortgages on real estate and/or upon chattels and interests 
        therein; assignments of such policies, deeds or mortgages; other valuable 
        papers, including books of accounts and other records used by the 
        ASSURED in the conduct of its business (but excluding all electronic data 
        processing records); and, all other instruments similar to or in the nature of 
        the foregoing in which the ASSURED acquired an interest at the time of the 
        ASSURED'S consolidation or merger with, or purchase of the principal 
        assets of, a predecessor or which are held by the ASSURED for any 
        purpose or in any capacity and whether so held gratuitously or not and 
        whether or not the ASSURED is liable therefor. 
 
    k.    Relative means the spouse of an Employee or partner of the ASSURED 
        and any unmarried child supported wholly by, or living in the home of, such 
        Employee or partner and being related to them by blood, marriage or legal 
        guardianship. 
    l.    Securities, documents or other written instruments means original 
        (including original counterparts) negotiable or non-negotiable instruments, or 
        assignments thereof, which in and of themselves represent an equitable 
        interest, ownership, or debt and which are in the ordinary course of business 
        transferable by delivery of such instruments with any necessary 
        endorsements or assignments. 

ICAP Bond (5-98)   
Form 17-02-1421 (Ed. 5-98)  Page 10 of 19 

Conditions And             
Limitations             
 
 
Definitions        m.    Subsidiary means any organization that, at the inception date of this Bond, 
(continued)            is named in the APPLICATION or is created during the BOND PERIOD and 
            of which more than fifty percent (50%) of the outstanding securities or voting 
            rights representing the present right to vote for election of directors is owned 
            or controlled by the ASSURED either directly or through one or more of its 
            subsidiaries. 
 
        n.    Transportation Company means any organization which provides its own 
            or its leased vehicles for transportation or which provides freight forwarding 
            or air express services. 
        o.    Voice Initiated Election means any election concerning dividend options 
            available to Investment Company shareholders or subscribers which is 
            requested by voice over the telephone. 
 
        p.    Voice Initiated Redemption means any redemption of shares issued by an 
            Investment Company which is requested by voice over the telephone. 
 
        q.    Voice Initiated Funds Transfer Instruction means any Voice Initiated 
            Redemption or Voice Initiated Election. 
 
        For the purposes of these definitions, the singular includes the plural and the 
        plural includes the singular, unless otherwise indicated. 
 
 
General Exclusions -    2.    This bond does not directly or indirectly cover: 
Applicable to All Insuring        a.    loss not reported to the COMPANY in writing within sixty (60) days after 
Clauses            termination of this Bond as an entirety; 
 
        b.    loss due to riot or civil commotion outside the United States of America and 
            Canada, or any loss due to military, naval or usurped power, war or 
            insurrection. This Section 2.b., however, shall not apply to loss which occurs 
            in transit in the circumstances recited in INSURING CLAUSE 3., provided 
            that when such transit was initiated there was no knowledge on the part of 
            any person acting for the ASSURED of such riot, civil commotion, military, 
            naval or usurped power, war or insurrection; 
 
        c.    loss resulting from the effects of nuclear fission or fusion or radioactivity; 
 
        d.    loss of potential income including, but not limited to, interest and dividends 
            not realized by the ASSURED or by any customer of the ASSURED; 
 
        e.    damages of any type for which the ASSURED is legally liable, except 
            compensatory damages, but not multiples thereof, arising from a loss 
            covered under this Bond; 
 
        f.    costs, fees and expenses incurred by the ASSURED in establishing the 
            existence of or amount of loss under this Bond, except to the extent covered 
            under INSURING CLAUSE 11.; 
 
        g.    loss resulting from indirect or consequential loss of any nature; 

ICAP Bond (5-98)   
Form 17-02-1421 (Ed. 5-98)  Page 11 of 19 

Conditions And                     
Limitations                     
 
 
General Exclusions -        h.    loss resulting from dishonest acts by any member of the Board of Directors 
Applicable to All Insuring            or Board of Trustees of the ASSURED who is not an Employee, acting 
Clauses            alone or in collusion with others; 
(continued)        i.    loss, or that part of any loss, resulting solely from any violation by the 
            ASSURED or by any Employee: 
            (1)    of any law regulating: 
                a.    the issuance, purchase or sale of securities, 
                b.    securities transactions on security or commodity exchanges or 
                    the over the counter market, 
                c.    investment companies, 
                d.    investment advisors, or 
            (2)    of any rule or regulation made pursuant to any such law; or 
        j.    loss of confidential information, material or data; 
        k.    loss resulting from voice requests or instructions received over the 
            telephone, provided however, this Section 2.k. shall not apply to INSURING 
            CLAUSE 7. or 9. 
 
 
Specific Exclusions -    3.    This Bond does not directly or indirectly cover: 
Applicable To All Insuring        a.    loss caused by an Employee, provided, however, this Section 3.a. shall not 
Clauses Except Insuring            apply to loss covered under INSURING CLAUSE 2. or 3. which results 
Clause 1.            directly from misplacement, mysterious unexplainable disappearance, or 
            damage or destruction of Property; 
        b.    loss through the surrender of property away from premises of the ASSURED 
            as a result of a threat: 
            (1)    to do bodily harm to any natural person, except loss of Property in 
                transit in the custody of any person acting as messenger of the 
                ASSURED, provided that when such transit was initiated there was no 
                knowledge by the ASSURED of any such threat, and provided further 
                that this Section 3.b. shall not apply to INSURING CLAUSE 7., or 
            (2)    to do damage to the premises or Property of the ASSURED; 
        c.    loss resulting from payments made or withdrawals from any account 
            involving erroneous credits to such account; 
        d.    loss involving Items of Deposit which are not finally paid for any reason 
            provided however, that this Section 3.d. shall not apply to INSURING 
            CLAUSE 10.; 
        e.    loss of property while in the mail; 

ICAP Bond (5-98)   
Form 17-02-1421 (Ed. 5-98)  Page 12 of 19 

Conditions And                             
Limitations                             
 
 
Specific Exclusions -        f.    loss resulting from the failure for any reason of a financial or depository 
Applicable To All Insuring            institution, its receiver or other liquidator to pay or deliver funds or other 
Clauses Except Insuring            Property to the ASSURED provided further that this Section 3.f. shall not 
Clause 1.            apply to loss of Property resulting directly from robbery, burglary, 
(continued)            misplacement,    mysterious    unexplainable    disappearance,    damage, 
            destruction or removal from the possession, custody or control of the 
            ASSURED.                 
        g.    loss of Property while in the custody of a Transportation Company, 
            provided however, that this Section 3.g. shall not apply to INSURING 
            CLAUSE 3.;                 
        h.    loss resulting from entries or changes made by a natural person with 
            authorized access to a Computer System who acts in good faith on 
            instructions, unless such instructions are given to that person by a software 
            contractor or its partner, officer, or employee authorized by the ASSURED to 
            design, develop, prepare, supply, service, write or implement programs for 
            the ASSURED's Computer System; or         
        i.    loss resulting directly or indirectly from the input of data into a Computer 
            System terminal, either on the premises of the customer of the ASSURED 
            or under the control of such a customer, by a customer or other person who 
            had authorized access to the customer's authentication mechanism. 
 
 
Specific Exclusions -    4.    This bond does not directly or indirectly cover:         
Applicable To All Insuring        a.    loss resulting from the complete or partial non-payment of or default on any 
Clauses Except Insuring            loan whether such loan was procured in good faith or through trick, artifice, 
Clauses 1., 4., And 5.            fraud or false pretenses; provided, however, this Section 4.a. shall not apply 
            to INSURING CLAUSE 8.;             
        b.    loss resulting from forgery or any alteration;         
        c.    loss involving a counterfeit provided, however, this Section 4.c. shall not 
            apply to INSURING CLAUSE 5. or 6.         
 
 
Limit Of Liability/Non-    5.    At all times prior to termination of this Bond, this Bond shall continue in force for 
Reduction And Non-        the limit stated in the applicable sections of ITEM 2. of the DECLARATIONS, 
Accumulation Of Liability        notwithstanding any previous loss for which the COMPANY may have paid or be 
        liable to pay under this Bond provided, however, that the liability of the COMPANY 
        under this Bond with respect to all loss resulting from:     
        a.    any one act of burglary, robbery or hold-up, or attempt thereat, in which no 
            Employee is concerned or implicated, or         
 
        b.    any one unintentional or negligent act on the part of any one person 
            resulting in damage to or destruction or misplacement of Property, or 
 
        c.    all acts, other than those specified in a. above, of any one person, or 

ICAP Bond (5-98)   
Form 17-02-1421 (Ed. 5-98)  Page 13 of 19 

Conditions And             
Limitations             
 
 
Limit Of Liability/Non-        d.    any one casualty or event other than those specified in a., b., or c. above, 
Reduction And Non-        shall be deemed to be one loss and shall be limited to the applicable LIMIT OF 
Accumulation Of Liability        LIABILITY stated in ITEM 2. of the DECLARATIONS of this Bond irrespective of 
(continued)        the total amount of such loss or losses and shall not be cumulative in amounts 
        from year to year or from period to period. 
 
        All acts, as specified in c. above, of any one person which 
 
        i.    directly or indirectly aid in any way wrongful acts of any other person or 
            persons, or 
 
        ii.    permit the continuation of wrongful acts of any other person or persons 
 
        whether such acts are committed with or without the knowledge of the wrongful 
        acts of the person so aided, and whether such acts are committed with or without 
        the intent to aid such other person, shall be deemed to be one loss with the 
        wrongful acts of all persons so aided. 
 
 
Discovery    6.    This Bond applies only to loss first discovered by an officer of the ASSURED 
        during the BOND PERIOD. Discovery occurs at the earlier of an officer of the 
        ASSURED being aware of: 
 
        a.    facts which may subsequently result in a loss of a type covered by this Bond, 
            or 
 
        b.    an actual or potential claim in which it is alleged that the ASSURED is liable 
            to a third party, 
 
        regardless of when the act or acts causing or contributing to such loss occurred, 
        even though the amount of loss does not exceed the applicable DEDUCTIBLE 
        AMOUNT, or the exact amount or details of loss may not then be known. 
 
 
Notice To Company -    7.    a.    The ASSURED shall give the COMPANY notice thereof at the earliest 
Proof - Legal Proceedings            practicable moment, not to exceed sixty (60) days after discovery of loss, in 
Against Company            an amount that is in excess of 50% of the applicable DEDUCTIBLE 
            AMOUNT, as stated in ITEM 2. of the DECLARATIONS. 
 
        b.    The ASSURED shall furnish to the COMPANY proof of loss, duly sworn to, 
            with full particulars within six (6) months after such discovery. 
 
        c.    Securities listed in a proof of loss shall be identified by certificate or bond 
            numbers, if issued with them. 
 
        d.    Legal proceedings for the recovery of any loss under this Bond shall not be 
            brought prior to the expiration of sixty (60) days after the proof of loss is filed 
            with the COMPANY or after the expiration of twenty-four (24) months from 
            the discovery of such loss. 
        e.    This Bond affords coverage only in favor of the ASSURED. No claim, suit, 
            action or legal proceedings shall be brought under this Bond by anyone 
            other than the ASSURED. 

ICAP Bond (5-98)   
Form 17-02-1421 (Ed. 5-98)  Page 14 of 19 

Conditions And             
Limitations             
 
 
Notice To Company -        f.    Proof of loss involving Voice Initiated Funds Transfer Instruction shall 
Proof - Legal Proceedings            include electronic recordings of such instructions. 
Against Company             
(continued)             
 
 
Deductible Amount    8.    The COMPANY shall not be liable under any INSURING CLAUSES of this Bond 
        on account of loss unless the amount of such loss, after deducting the net amount 
        of all reimbursement and/or recovery obtained or made by the ASSURED, other 
        than from any Bond or policy of insurance issued by an insurance company and 
        covering such loss, or by the COMPANY on account thereof prior to payment by 
        the COMPANY of such loss, shall exceed the DEDUCTIBLE AMOUNT set forth in 
        ITEM 3. of the DECLARATIONS, and then for such excess only, but in no event 
        for more than the applicable LIMITS OF LIABILITY stated in ITEM 2. of the 
        DECLARATIONS. 
 
        There shall be no deductible applicable to any loss under INSURING CLAUSE 1. 
        sustained by any Investment Company. 
 
 
Valuation    9.    BOOKS OF ACCOUNT OR OTHER RECORDS 
        The value of any loss of Property consisting of books of account or other records 
        used by the ASSURED in the conduct of its business shall be the amount paid by 
        the ASSURED for blank books, blank pages, or other materials which replace the 
        lost books of account or other records, plus the cost of labor paid by the 
        ASSURED for the actual transcription or copying of data to reproduce such books 
        of account or other records. 
 
        The value of any loss of Property other than books of account or other records 
        used by the ASSURED in the conduct of its business, for which a claim is made 
        shall be determined by the average market value of such Property on the 
        business day immediately preceding discovery of such loss provided, however, 
        that the value of any Property replaced by the ASSURED with the consent of the 
        COMPANY and prior to the settlement of any claim for such Property shall be the 
        actual market value at the time of replacement. 
 
        In the case of a loss of interim certificates, warrants, rights or other securities, the 
        production of which is necessary to the exercise of subscription, conversion, 
        redemption or deposit privileges, the value of them shall be the market value of 
        such privileges immediately preceding their expiration if said loss is not discovered 
        until after their expiration. If no market price is quoted for such Property or for 
        such privileges, the value shall be fixed by agreement between the parties. 
        OTHER PROPERTY 
 
        The value of any loss of Property, other than as stated above, shall be the actual 
        cash value or the cost of repairing or replacing such Property with Property of 
        like quality and value, whichever is less. 

ICAP Bond (5-98)   
Form 17-02-1421 (Ed. 5-98)  Page 15 of 19 

Conditions And             
Limitations             
(continued)             
 
 
Securities Settlement    10.    In the event of a loss of securities covered under this Bond, the COMPANY may, 
        at its sole discretion, purchase replacement securities, tender the value of the 
        securities in money, or issue its indemnity to effect replacement securities. 
 
        The indemnity required from the ASSURED under the terms of this Section 
        against all loss, cost or expense arising from the replacement of securities by the 
        COMPANY'S indemnity shall be: 
 
        a.    for securities having a value less than or equal to the applicable 
            DEDUCTIBLE AMOUNT - one hundred (100%) percent; 
 
        b.    for securities having a value in excess of the DEDUCTIBLE AMOUNT but 
            within the applicable LIMIT OF LIABILITY - the percentage that the 
            DEDUCTIBLE AMOUNT bears to the value of the securities; 
 
        c.    for securities having a value greater than the applicable LIMIT OF LIABILITY 
            - the percentage that the DEDUCTIBLE AMOUNT and portion in excess of 
            the applicable LIMIT OF LIABILITY bears to the value of the securities. 
 
        The value referred to in Section 10.a., b., and c. is the value in accordance with 
        Section 9, VALUATION, regardless of the value of such securities at the time the 
        loss under the COMPANY'S indemnity is sustained. 
 
        The COMPANY is not required to issue its indemnity for any portion of a loss of 
        securities which is not covered by this Bond; however, the COMPANY may do so 
        as a courtesy to the ASSURED and at its sole discretion. 
        The ASSURED shall pay the proportion of the Company's premium charge for the 
        Company's indemnity as set forth in Section 10.a., b., and c. No portion of the 
        LIMIT OF LIABILITY shall be used as payment of premium for any indemnity 
        purchased by the ASSURED to obtain replacement securities. 
 
 
Subrogation - Assignment - 11.    In the event of a payment under this Bond, the COMPANY shall be subrogated to 
Recovery        all of the ASSURED'S rights of recovery against any person or entity to the extent 
        of such payment. On request, the ASSURED shall deliver to the COMPANY an 
        assignment of the ASSURED'S rights, title and interest and causes of action 
        against any person or entity to the extent of such payment. 
 
        Recoveries, whether effected by the COMPANY or by the ASSURED, shall be 
        applied net of the expense of such recovery in the following order: 
 
        a.    first, to the satisfaction of the ASSURED'S loss which would otherwise have 
            been paid but for the fact that it is in excess of the applicable LIMIT OF 
            LIABILITY, 
 
        b.    second, to the COMPANY in satisfaction of amounts paid in settlement of 
            the ASSURED'S claim, 
 
        c.    third, to the ASSURED in satisfaction of the applicable DEDUCTIBLE 
            AMOUNT, and 

ICAP Bond (5-98)   
Form 17-02-1421 (Ed. 5-98)  Page 16 of 19 

Conditions And             
Limitations             
 
 
Subrogation - Assignment -        d.    fourth, to the ASSURED in satisfaction of any loss suffered by the 
Recovery            ASSURED which was not covered under this Bond. 
(continued)        Recovery from reinsurance or indemnity of the COMPANY shall not be deemed a 
        recovery under this section. 
 
 
Cooperation Of Assured    12.    At the COMPANY'S request and at reasonable times and places designated by 
        the COMPANY, the ASSURED shall: 
 
        a.    submit to examination by the COMPANY and subscribe to the same under 
            oath, 
 
        b.    produce for the COMPANY'S examination all pertinent records, and 
 
        c.    cooperate with the COMPANY in all matters pertaining to the loss. 
 
        The ASSURED shall execute all papers and render assistance to secure to the 
        COMPANY the rights and causes of action provided for under this Bond. The 
        ASSURED shall do nothing after loss to prejudice such rights or causes of action. 
 
 
Termination    13.    If the Bond is for a sole ASSURED, it shall not be terminated unless written notice 
        shall have been given by the acting party to the affected party and to the 
        Securities and Exchange Commission, Washington, D.C., not less than sixty (60) 
        days prior to the effective date of such termination. 
        If the Bond is for a joint ASSURED, it shall not be terminated unless written notice 
        shall have been given by the acting party to the affected party, and by the 
        COMPANY to all ASSURED Investment Companies and to the Securities and 
        Exchange Commission, Washington, D.C., not less than sixty (60) days prior to 
        the effective date of such termination. 
        This Bond will terminate as to any one ASSURED, other than an Investment 
        Company: 
 
        a.    immediately on the taking over of such ASSURED by a receiver or other 
            liquidator or by State or Federal officials, or 
 
        b.    immediately on the filing of a petition under any State or Federal statute 
            relative to bankruptcy or reorganization of the ASSURED, or assignment for 
            the benefit of creditors of the ASSURED, or 
 
        c.    immediately upon such ASSURED ceasing to exist, whether through merger 
            into another entity, disposition of all of its assets or otherwise. 
 
        The COMPANY shall refund the unearned premium computed at short rates in 
        accordance with the standard short rate cancellation tables if terminated by the 
        ASSURED or pro rata if terminated for any other reason. 

ICAP Bond (5-98)   
Form 17-02-1421 (Ed. 5-98)  Page 17 of 19 

Conditions And             
Limitations             
 
 
Termination        If any partner, director, trustee, or officer or supervisory employee of an 
(continued)        ASSURED not acting in collusion with an Employee learns of any dishonest act 
        committed by such Employee at any time, whether in the employment of the 
        ASSURED or otherwise, whether or not such act is of the type covered under this 
        Bond, and whether against the ASSURED or any other person or entity, the 
        ASSURED: 
 
        a.    shall immediately remove such Employee from a position that would enable 
            such Employee to cause the ASSURED to suffer a loss covered by this 
            Bond; and 
        b.    within forty-eight (48) hours of learning that an Employee has committed 
            any dishonest act, shall notify the COMPANY, of such action and provide full 
            particulars of such dishonest act. 
 
        The COMPANY may terminate coverage as respects any Employee sixty (60) 
        days after written notice is received by each ASSURED Investment Company 
        and the Securities and Exchange Commission, Washington, D.C. of its desire to 
        terminate this Bond as to such Employee. 
 
 
Other Insurance    14.    Coverage under this Bond shall apply only as excess over any valid and collectible 
        insurance, indemnity or suretyship obtained by or on behalf of: 
 
        a.    the ASSURED, 
        b.    a Transportation Company, or 
 
        c.    another entity on whose premises the loss occurred or which employed the 
            person causing the loss or engaged the messenger conveying the Property 
            involved. 
 
 
Conformity    15.    If any limitation within this Bond is prohibited by any law controlling this Bond's 
        construction, such limitation shall be deemed to be amended so as to equal the 
        minimum period of limitation provided by such law. 
 
 
Change or Modification    16.    This Bond or any instrument amending or affecting this Bond may not be changed 
        or modified orally. No change in or modification of this Bond shall be effective 
        except when made by written endorsement to this Bond signed by an authorized 
        representative of the COMPANY. 
 
        If this Bond is for a sole ASSURED, no change or modification which would 
        adversely affect the rights of the ASSURED shall be effective prior to sixty (60) 
        days after written notice has been furnished to the Securities and Exchange 
        Commission, Washington, D.C., by the acting party. 

ICAP Bond (5-98)   
Form 17-02-1421 (Ed. 5-98)  Page 18 of 19 

Conditions And     
Limitations     
 
 
Change or Modification    If this Bond is for a joint ASSURED, no charge or modification which would 
(continued)    adversely affect the rights of the ASSURED shall be effective prior to sixty (60) 
    days after written notice has been furnished to all insured Investment Companies 
    and to the Securities and Exchange Commission, Washington, D.C., by the 
    COMPANY. 

ICAP Bond (5-98)   
Form 17-02-1421 (Ed. 5-98)  Page 19 of 19 

                                                                                                                                             FEDERAL INSURANCE COMPANY 
                                                                                                                                             Endorsement No:    1 
                                                                                                                                             Bond Number:    82126582 
NAME OF ASSURED: BANCROFT FUND LTD.     
 
                                                                       AMEND NAME OF ASSURED ENDORSEMENT     
It is agreed that NAME OF ASSURED of the DECLARATIONS for this Bond is amended to include the 
following:     
Bancroft Fund Ltd.     
Ellsworth Fund Ltd.     
 
This Endorsement applies to loss discovered after 12:01 a.m. on May 1, 2008.     
ALL OTHER TERMS AND CONDITIONS OF THIS BOND REMAIN UNCHANGED. 


ICAP Bond   
Form 17-02-6272 (Ed. 8-04)  Page 1 

Effective date of         
this endorsement: May 1, 2008    FEDERAL INSURANCE COMPANY 
    Endorsement No.: 2 
    To be attached to and form a part of Bond 
    Number:    82126582 
 
 
Issued to: BANCROFT FUND LTD.         
                                           COMPLIANCE WITH APPLICABLE TRADE SANCTION LAWS RIDER 
It is agreed that this insurance does not apply to the extent that trade or economic sanctions or other 
laws or regulations prohibit the coverage provided by this insurance. 
 
 
 
 
ALL OTHER TERMS AND CONDITIONS OF THIS BOND REMAIN UNCHANGED. 


Form 14-02-9228 (Ed. 4/2004)

             ENDORSEMENT/RIDER 
Effective date of         
this endorsement/rider: May 1, 2008                       FEDERAL INSURANCE COMPANY 
                           Endorsement/Rider No.    3 
                           To be attached to and     
                           form a part of Bond No.    82126582 
 
 
Issued to: BANCROFT FUND LTD.         
    DELETING VALUATION-OTHER PROPERTY AND AMENDING CHANGE OR MODIFICATION 
        ENDORSEMENT     
In consideration of the premium charged, it is agreed that this Bond is amended as follows: 
1.    The paragraph titled Other Property in Section 9, Valuation, is deleted in its entirety. 
2.    The third paragraph in Section 16, Change or Modification, is deleted in its entirety and replaced 
    with the following:         
    If this Bond is for a joint ASSURED, no change or modification which would adversely affect the 
    rights of the ASSURED shall be effective prior to sixty (60) days after written notice has been 
    furnished to all insured Investment Companies and the Securities and Exchange Commission, 
    Washington, D.C., by the COMPANY.         
 
 
The title and any headings in this endorsement/rider are solely for convenience and form no part of the 
terms and conditions of coverage.         
All other terms, conditions and limitations of this Bond shall remain unchanged.     

17-02-2437 (12/2006) rev. Page 1

                                                                                                                                     FEDERAL INSURANCE COMPANY 
                                                                                                                                     Endorsement No:    4 
                                                                                                                                     Bond Number:    82126582 
NAME OF ASSURED: BANCROFT FUND LTD.     
 
 
                                     TERMINATION-NONRENEWAL-NOTICE ENDORSEMENT 
It is agreed that this Bond is amended as follows:     
1.    By adding to Section 13., Termination, the following:     
    "Termination By The Company     
    Bonds In Effect For More Than Sixty (60) Days     
    If this Bond has been in effect for more than sixty (60) days, or, if this Bond is a renewal, the COMPANY 
    may terminate by providing written notice of cancellation at least sixty (60) days before the effective date 
    of termination for at least one of the following reasons:     
    1.    Nonpayment of premium;     
    2.    Discovery of fraud or material misrepresentation in obtaining this Bond or in the presentation of a 
        claim thereunder;     
    3.    Discovery of willful or reckless acts or omissions or violation of any provision of this Bond on the 
        part of the ASSURED which substantially and materially increases any hazard insured against, and 
        which occurred subsequent to the inception of the current BOND PERIOD; 
    4.    Conviction of the ASSURED of a crime arising out of acts increasing the hazard insured against; 
    5.    Material change in the risk which increases the risk of loss after insurance coverage has been 
        issued or renewed, except to the extent that the COMPANY should reasonably have foreseen the 
        change, or contemplated the risk when the contract was written;     
    6.    Determination by the Commissioner that the continuation of the Bond would jeopardize a 
        COMPANY'S solvency or would place the COMPANY in violation of the insurance laws of any 
        state;     
    7.    Determination by the Commissioner that continuation of the present premium volume of the 
        COMPANY would jeopardize the COMPANY'S policyholders, creditors or the public; 
    8.    Such other reasons that are approved by the Commissioner;     
    9.    Determination by the Commissioner that the COMPANY no longer has adequate reinsurance to 
        meet the ASSUREDS needs;     
    10.    Substantial breaches of contractual duties, conditions or warranties; or     
    11.    Unfavorable underwriting facts, specific to the ASSURED, existing that were not present at the 
        inception of the Bond.     

ICAP Bond   
Form 17-02-1360 (Rev. 10-99)  Page 1 

Bonds In Effect Sixty (60) Days Or Less 
 
If this Bond has been in effect for sixty (60) days or less, and it is not a renewal Bond, the COMPANY 
may terminate for any reason by providing written notice of termination at least sixty (60) days before the 
effective date of termination. 
 
Notice Of Termination 
 
Notice of termination under this Section shall be mailed or delivered, by certified mail, return receipt 
provided by the United States Postal Service, to the ASSURED and to the authorized agent or broker, if 
any, at least sixty (60) days prior to the effective date of cancellation at the address shown on the 
DECLARATIONS of this Bond. 
 
If this Bond is cancelled for nonpayment of premium, the COMPANY will mail or deliver, by certified 
mail, return receipt provided by the United States Postal Service, a written notice at least thirty (30) days 
before the effective date of cancellation. The cancellation notice shall contain information regarding the 
amount of premium due and the due date, and shall state the effect of nonpayment by the due date. 
Cancellation shall not be effective if payment of the amount due is made prior to the effective date of 
cancellation. 
 
All notice of cancellation shall state the reason(s) for cancellation. 
 
There is no liability on the part of, and no cause of action of any nature shall arise against, the 
COMPANY, its authorized representatives, its employees, or any firm, person or corporation furnishing to 
the COMPANY, information relating to the reasons for cancellation or nonrenewal, for any statement 
made by them in complying or enabling the COMPANY to comply with this Section, for the provision of 
information pertaining thereto, or for statements made or evidence submitted at any hearings conducted 
in connection therewith, if such information was provided in good faith and without malice. 
 
Notice Of Nonrenewal 
 
If the COMPANY elects not to renew this Bond, the COMPANY shall mail or deliver written notice, by 
certified mail, return receipt, provided by the United States Postal Service, to the ASSURED, at his last 
known address, at least sixty (60) days before the expiration date or before the anniversary date, if this 
Bond has been written for a term of more than one (1) year. Such notice shall also be mailed to the 
ASSURED'S agent or broker, if any. 
 
Such notice shall contain all of the following: 
 
a.    Bond Number: 
 
b.    Date of Notice; 
 
c.    Reason for Cancellation; 
 
d.    Expiration Date of the Bond; 
 
e.    Effective Date and Hour of Cancellation. 
 
Notice of nonrenewal shall not be required if the COMPANY or a COMPANY within the same insurance 
group has offered to issue a renewal Bond, the ASSURED has obtained replacement coverage or has 
agreed in writing to obtain replacement coverage, the ASSURED has requested or agreed to 
nonrenewal, or the Bond is expressly designated as nonrenewable. 

ICAP Bond   
Form 17-02-1360 (Rev. 10-99)  Page 2 

    Return Premium Calculations 
 
    Any unearned premiums which have been paid by the ASSURED shall be refunded to the ASSURED on 
    a pro rata basis if terminated by the COMPANY or the ASSURED. The unearned premiums shall be 
    refunded to the ASSURED within forty-five (45) days of receipt of the request for cancellation or the 
    effective date of cancellation, whichever is later. 
 
    Conditional Renewal 
 
    If the COMPANY offers or purports to renew the Bond, but on less favorable terms or at higher rates, the 
    new terms or higher premiums may take effect on the renewal date, if the COMPANY mails or delivers 
    by certified mail, return receipt provided by the United States Postal Service, to the ASSURED, notice of 
    the new terms or premiums at least sixty (60) days prior to the renewal date. If the COMPANY notifies 
    the ASSURED within sixty (60) days prior to the renewal date, the new terms or premiums do not take 
    effect until sixty (60) days after the notice is mailed or delivered, in which case, the ASSURED may elect 
    to cancel the renewal Bond within the sixty (60) day period. If the COMPANY does not notify the 
    ASSURED of the new terms or premiums, the COMPANY shall continue the Bond at the expiring terms 
    and premiums until notice is given or until the effective date of replacement coverage is obtained by the 
    ASSURED, whichever occurs first.” 
 
2.    It is further understood and agreed that for the purposes of Section 13., Termination, any occurrence 
    listed in this Section shall be considered to be a request by the ASSURED to immediately terminate this 
    Bond. 
 
 
 
 
This Endorsement applies to loss discovered after 12:01 a.m. on May 1, 2008. 
 
 
 
 
ALL OTHER TERMS AND CONDITIONS OF THIS BOND REMAIN UNCHANGED. 


ICAP Bond   
Form 17-02-1360 (Rev. 10-99)  Page 3 

                               ENDORSEMENT/RIDER 
Effective date of         
this endorsement/rider: May 1, 2008    FEDERAL INSURANCE COMPANY 
        Endorsement/Rider No.    5 
        To be attached to and     
        form a part of Bond No.    82126582 
Issued to: BANCROFT FUND LTD.         
 
 
                                                         AUTOMATIC INCREASE IN LIMITS ENDORSEMENT 
In consideration of the premium charged, it is agreed that GENERAL AGREEMENTS, Section C. Additional 
Offices Or Employees-Consolidation, Merger Or Purchase Or Acquisition Of Assets Or Liabilities-Notice To 
Company, is amended by adding the following subsection:     
Automatic Increase in Limits for Investment Companies     
If an increase in bonding limits is required pursuant to rule 17g-1 of the Investment Company Act of 1940 
(“the Act”), due to:         
(i)    the creation of a new Investment Company, other than by consolidation or merger with, or purchase 
    or acquisition of assets or liabilities of, another institution; or     
(ii)    an increase in asset size of current Investment Companies covered under this Bond, 
then the minimum required increase in limits shall take place automatically without payment of additional 
premium for the remainder of the BOND PERIOD.     
 
 
The title and any headings in this endorsement/rider are solely for convenience and form no part of the terms 
and conditions of coverage.         
 
All other terms, conditions and limitations of this Bond shall remain unchanged. 

14-02-14098 (04/2008) Page 1

                                               POLICYHOLDER 
                                DISCLOSURE NOTICE OF 
                TERRORISM INSURANCE COVERAGE 
                     (for policies with no terrorism exclusion or sublimit) 
You are hereby notified that, under the Terrorism Risk Insurance Act (the “Act”), effective 
December 26, 2007, this policy makes available to you insurance for losses arising out of 
certain acts of terrorism. Terrorism is defined as any act certified by the Secretary of the 
Treasury, in concurrence with the Secretary of State and the Attorney General of the 
United States, to be an act of terrorism; to be a violent act or an act that is dangerous to 
human life, property or infrastructure; to have resulted in damage within the United 
States, or outside the United States in the case of an air carrier or vessel or the premises 
of a United States Mission; and to have been committed by an individual or individuals as 
part of an effort to coerce the civilian population of the United States or to influence the 
policy or affect the conduct of the United States Government by coercion. 
 
You should know that the insurance provided by your policy for losses caused by acts of 
terrorism is partially reimbursed by the United States under the formula set forth in the 
Act. Under this formula, the United States pays 85% of covered terrorism losses that 
exceed the statutorily established deductible to be paid by the insurance company 
providing the coverage. 
 
However, if aggregate insured losses attributable to terrorist acts certified under the Act 
exceed $100 billion in a Program Year (January 1 through December 31), the Treasury 
shall not make any payment for any portion of the amount of such losses that exceeds 
$100 billion. 

10-02-1281 (Ed. 1/2003)

If aggregate insured losses attributable to terrorist acts certified under the Act exceed 
$100 billion in a Program Year (January 1 through December 31) and we have met our 
insurer deductible under the Act, we shall not be liable for the payment of any portion of 
the amount of such losses that exceeds $100 billion, and in such case insured losses up 
to that amount are subject to pro rata allocation in accordance with procedures 
established by the Secretary of the Treasury. 
 
The portion of your policy’s annual premium that is attributable to insurance for such acts 
of terrorism is: $ -0-. 
 
If you have any questions about this notice, please contact your agent or broker. 

10-02-1281 (Ed. 1/2003)

                                      Important Notice: 
 
 
 
The SEC Requires Proof of Your Fidelity Insurance Policy 
 
Your company is now required to file an electronic copy of your fidelity insurance coverage 
(Chubb’s ICAP Bond policy) to the Securities and Exchange Commission (SEC), according to 
rules adopted by the SEC on June 12, 2006. 
 
Chubb is in the process of providing your agent/broker with an electronic copy of your 
insurance policy as well as instructions on how to submit this proof of fidelity insurance 
coverage to the SEC. You can expect to receive this information from your agent/broker 
shortly. 
 
The electronic copy of your policy is provided by Chubb solely as a convenience and does not 
affect the terms and conditions of coverage as set forth in the paper policy you receive by mail. 
The terms and conditions of the policy mailed to you, which are the same as those set forth in 
the electronic copy, constitute the entire agreement between your company and Chubb. 
 
If you have any questions, please contact your agent or broker. 

Form 14-02-12160 (ed. 7/2006)

                                                   IMPORTANT NOTICE TO POLICYHOLDERS 
 
 
 
                   All of the members of the Chubb Group of Insurance companies doing business in the United 
States (hereinafter “Chubb”) distribute their products through licensed insurance brokers and agents 
(“producers”). Detailed information regarding the types of compensation paid by Chubb to producers on 
US insurance transactions is available under the Producer Compensation link located at the bottom of 
the page at www.chubb.com, or by calling 1-866-588-9478. Additional information may be available 
from your producer. 
 
                   Thank you for choosing Chubb. 

10-02-1295 (ed. 5/2007)