Dinsmore Capital Management

The Green in Morristown

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GIPS Compliance

Dinsmore Capital Management Composite Annual Disclosure

Year End	Total Firm Assets (millions)	Composite Assets (USD)	Number of Accounts	Merrill Lynch All Convertible	Annual Performance Results Composite		Composite Dispersion *	BAML All Convertible 3 Year Annualized Standard Deviation	DCM Composite 3 Year Annualized Standard Deviation
Year End	Total Firm Assets (millions)	(Millions)			Gross	Net	Composite Dispersion *	BAML All Convertible 3 Year Annualized Standard Deviation	DCM Composite 3 Year Annualized Standard Deviation
2011	200	200	2	(5.18%)	(4.00%)	(4.70%)	N.A.	12.84%	12.54%
2010	216	216	2	16.77%	16.66%	15.80%	N.A.	19.33%	19.07%
2009	193	193	2	49.12%	45.81%	44.73%	N.A.	18.57%	18.21%
2008	140	140	2	(35.73%)	(37.26%)	(37.71%)	N.A.	16.04%	16.19%
2007	253	253	2	4.53%	10.38%	9.62%	N.A.	6.76%	6.61%
2006	250	250	2	12.83%	13.68%	12.89%	N.A.	6.45%	6.47%
2005	232	232	2	1.01%	4.96%	4.21%	N.A.	7.09%	6.98%
2004	231	231	2	9.61%	6.36%	5.60%	N.A.	9.69%	7.88%
2003	226	226	2	27.15%	20.28%	19.39%	N.A.	12.53%	9.08%
2002	172	172	2	(8.58%)	(5.65%)	(6.36%)	N.A.	16.41%	11.78%
2001	190	190	2	(4.44%)	(1.42%)	(2.15%)	N.A.	17.93%	11.90%
2000	203	203	2	(10.00%)	4.06%	3.31%	N.A.	17.94%	13.47%

(*) Composite Dispersion is not applicable (N.A.) because the information is not statistically meaningful due to an insufficient number of portfolios in the composite for the entire year.

DCM is an independent registered investment adviser and focuses on managing balanced portfolios. The firm maintains a complete list and description of composites, which is available upon request. DCM was formally named Davis Dinsmore Management (DD). All of the assets managed by DD are the same assets managed by DCM and these assets constitute the DCM Composite.

Dinsmore Capital Management (DCM) claims compliance with the Global Investment Performance Standards (GIPS�) and has prepared and presented this report in compliance with the Global Investment Performance Standards (GIPS�). DCM has been independently verified for the period January 1, 1998 through December 31, 2011 by Ashland Partners & Company LLP. Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS standards on a firm-wide basis and (2) the firm�s policies and procedures are designed to calculate and present performance in compliance with the GIPS standards. The DCM Composite has been examined for the period January 1, 1998 to December 31, 2011. The verification and performance examination reports are available upon request.

The Dinsmore Capital Management Composite includes all portfolios with a target allocation of at least 65% convertible securities and no more than 35% non convertible securities. The strategy aims to deliver a total return through a combination of income and capital appreciation with lower volatility than the S&P 500. Currently this consists of Bancroft Fund Ltd. and Ellsworth Fund Ltd. The benchmark is the Bank of America Merrill Lynch All Convertibles Index (VXA0). The VXA0 is an unbiased proxy for the broad U.S. Convertible Market. It is composed of USD denominated Convertibles over $50mm market value that are convertible into USD denominated common Stock, ADRs ,or cash equivalent. Index returns are calculated on a monthly basis.

Gross-of-fee results are presented before management and other account fees but after trading expenses. Net-of-fee results have been reduced by the actual management fee in the standard fee schedule reflecting a return net of trading expenses and management fees only, calculated monthly. Returns are presented gross and net of management fees and include the reinvestment of all income.

The standard investment management fee schedule for the composite is 0.75% for the first $100,000,000, 0.50% for any assets over $100,000,000. Actual investment advisory fees incurred by clients may vary.

The annual composite dispersion presented is an asset-weighted standard deviation calculated for the accounts in the composite the entire year and is only presented for periods with more than 5 accounts in for the entire year. Additional information regarding the firm�s policies and procedures for valuing portfolios, calculating and reporting performance results, and preparing compliant presentations is available upon request.

In January of 2010 it was determined that the methodology used to determine performance did not adequately account for the dilutive effects caused by the issuance or repurchase of shares at prices different than Net Asset Value for the years 1998 through 2008. We have changed the methodology in this Disclosure to properly account for the dilutive effect. Each of those years (1998 � 2008) Gross and Net have been adjusted upward to reflect this change.