11 Hanover Square, 12th Floor New York, NY	10005
(Address of principal executive offices)	(Zip Code)

 

			DIVIDEND AND INCOME FUND
			SCHEDULE OF PORTFOLIO INVESTMENTS
			September 30, 2015
			(Unaudited)
Shares					Value
			Common Stocks (103.58%)
			Agricultural Chemicals (2.78%)
	15,000		Monsanto Company		$	1,280,100
	45,000		Potash Corporation of Saskatchewan Inc.			924,750
	35,000		The Mosaic Company			1,088,850
						3,293,700
			Aircraft Engines & Engine Parts (0.48%)
	55,000		Rolls-Royce Holdings PLC			564,021
			Beverages (1.44%)
	18,000		PepsiCo, Inc. (a)			1,697,400
			Biological Products (1.42%)
	12,100		Amgen Inc. (a)			1,673,672
			Cable & Other Pay Television Services (2.19%)
	32,500		Rogers Communications Inc.			1,120,600
	21,400		Time Warner Inc. (a) (b)			1,471,250
						2,591,850
			Cigarettes (1.88%)
	28,000		Philip Morris International, Inc. (a)			2,221,240
			Commercial Banks (1.55%)
	30,000		Australia and New Zealand Banking Group Limited			570,510
	60,000		Westpac Banking Corporation			1,263,600
						1,834,110
			Computer & Office Equipment (1.10%)
	9,000		International Business Machines Corporation			1,304,730
			Computer Communications Equipment (1.89%)
	85,000		Cisco Systems, Inc. (a)			2,231,250
			Conglomerate (1.07%)
	35,000		Loews Corp.			1,264,900
			Construction, Mining & Materials Handling Machinery & Equipment (0.65%)
	13,500		Dover Corp. (a) (b)			771,930
			Deep Sea Foreign Transportation of Freight (0.59%)
	45,875		Seaspan Corp.			702,805
			Dolls & Stuffed Toys (0.45%)
	25,000		Mattel, Inc. (a)			526,500
			Electric Services (2.66%)
	70,000		Calpine Corp. (a)			1,022,000
	47,500		Southern Company (a)			2,123,250
						3,145,250
			Electronic & Other Electrical Equipment (3.36%)
	26,000		Emerson Electric Co.			1,148,420
	111,900		General Electric Company (a)			2,822,118
						3,970,538
			Electronic & Other Services Combined (1.29%)
	51,500		Exelon Corp. (a)			1,529,550
			Farm Machinery & Equipment (2.55%)
	37,000		AGCO Corporation (a)			1,725,310
	17,500		Deere & Company (a) (b)			1,295,000
						3,020,310
			Finance Services (1.13%)
	18,000		American Express Company			1,334,340
			Fire, Marine & Casualty Insurance (4.97%)
	20,000		Ace Ltd. (a)			2,068,000
	70,000		W.R. Berkley Corporation (a) (b)			3,805,900
						5,873,900
			Food & Kindred Products (1.07%)
	25,000		Campbell Soup Co. (a)			1,267,000
			Hospital & Medical Service Plans (2.02%)
	17,100		Anthem, Inc.			2,394,000
			Hotels & Motels (1.16%)
	29,000		Las Vegas Sands Corp.			1,101,130
	20,000		Melco Crown Entertainment Limited			275,200
						1,376,330
			Investment Advice (4.30%)
	62,720		Apollo Global Management, LLC			1,077,530
	55,000		The Blackstone Group L.P. (a)			1,741,850
	200,000		Fortress Investment Group LLC			1,110,000
	37,000		Invesco Ltd.			1,155,510
						5,084,890
			Leather & Leather Products (0.73%)
	30,000		Coach, Inc. (a)			867,900
			Men's & Boys' Furnishings, Work Clothing, & Allied Garments (1.10%)
	11,000		Ralph Lauren Corp.			1,299,760
			Metal Mining (1.00%)
	35,000		Rio Tinto plc ADR			1,183,700
			Mining Machinery & Equipment (0.35%)
	27,500		Joy Global Inc.			410,575
			Miscellaneous Food Preparations & Kindred Products (1.39%)
	20,000		McCormick & Company, Incorporated			1,643,600
			Motor Vehicle Parts & Accessories (2.00%)
	25,000		Honeywell International, Inc. (a)			2,367,250
			Motor Vehicles & Passenger Car Bodies (4.38%)
	20,000		Daimler AG (a)			1,457,000
	120,000		Ford Motor Company			1,628,400
	41,500		General Motors Company (a)			1,245,830
	35,000		Volkswagen AG			843,500
						5,174,730
			National Commercial Banks (3.89%)
	20,200		Capital One Financial Corporation (a)			1,464,904
	39,000		U.S. Bancorp			1,599,390
	30,000		Wells Fargo & Company			1,540,500
						4,604,794
			Office Furniture (0.88%)
	110,000		Kimball International Inc. Class B			1,040,600
			Paperboard Containers & Boxes (0.57%)
	17,000		REXAM PLC			670,650
			Petroleum Refining (3.61%)
	17,000		Exxon Mobil Corp.			1,263,950
	20,500		Phillips 66 (a) (b)			1,575,220
	32,500		Western Refining, Inc.			1,433,900
						4,273,070
			Pharmaceutical Preparations (6.24%)
	23,100		Johnson & Johnson (a) (b)			2,156,385
	40,300		Merck & Co., Inc. (a) (b)			1,990,417
	37,924		Pfizer Inc.			1,191,192
	42,900		Sanofi ADR (a)			2,036,463
						7,374,457
			Plastic Mail, Synth Resin/Rubber, Cellulose (0.26%)
	50,000		Rayonier Advanced Materials Inc.			306,000
			Printed Circuit Boards (0.83%)
	82,500		Kimball Electronics, Inc. (c)			984,225
			Radio & TV Broadcasting & Communications Equipment (0.91%)
	20,000		QUALCOMM, Incorporated (a) (b)			1,074,600
			Railroads, Line-Haul Operating (3.44%)
	108,500		CSX Corp. (a)			2,918,650
	15,000		Norfolk Southern Corp.			1,146,000
						4,064,650
			Real Estate (0.61%)
	50,000		NorthStar Asset Management Group Inc.			718,000
			Retail - Department Stores (1.12%)
	28,600		Kohl's Corporation			1,324,466
			Retail - Eating Places (1.54%)
	18,500		McDonald's Corp. (a)			1,822,805
			Retail - Family Clothing Stores (0.96%)
	40,000		The GAP, Inc. (a)			1,140,000
			Retail - Variety Stores (1.06%)
	19,400		Wal-Mart Stores, Inc.			1,257,896
			Security Brokers, Dealers & Flotation Companies (0.97%)
	33,000		Waddell & Reed Financial, Inc.			1,147,410
			Semiconductors & Related Devices (1.69%)
	40,000		Altera Corp.			2,003,200
			Services - Business Services (1.29%)
	83,000		The Western Union Company (a)			1,523,880
			Services - Medical Laboratories (2.74%)
	14,000		Laboratory Corporation of America Holdings (a) (c)			1,518,580
	28,000		Quest Diagnostics Incorporated			1,721,160
						3,239,740
			Services - Miscellaneous Repair Services (0.03%)
	756		Aquilex Holdings LLC Units (d)			37,605
			Services - Prepackaged Software (2.64%)
	55,000		CA, Inc. (a)			1,501,500
	45,000		Oracle Corporation (a) (b)			1,625,400
						3,126,900
			Soap, Detergent, Cleaning Preparations, Perfumes, Cosmetics (2.37%)
	18,000		The Procter & Gamble Company (a)			1,294,920
	37,500		Unilever N.V.			1,507,500
						2,802,420
			Specialty Cleaning, Polishing and Sanitation Preparations (1.66%)
	17,000		Clorox Co. (a)			1,964,010
			Surgical & Medical Instruments & Apparatus (2.67%)
	27,000		Baxalta Incorporated			850,770
	27,000		Baxter International Inc. (a)			886,950
	10,700		Becton, Dickinson and Company (a)			1,419,462
						3,157,182
			Telephone Communications (2.83%)
	43,000		CenturyLink, Inc. (a)			1,080,160
	150,000		Orange ADR			2,268,000
						3,348,160
			Title Insurance (2.15%)
	65,000		First American Financial Corporation			2,539,550
			Wholesale - Electronic Parts & Equipment (1.16%)
	32,000		Avnet, Inc.			1,365,760
			Wholesale - Groceries & Related Products (1.48%)
	45,000		Sysco Corp. (a)			1,753,650
			Wholesale - Industrial Machinery & Equipment (1.03%)
	20,000		MSC Industrial Direct Co., Inc.			1,220,600
			Total common stocks (Cost $120,896,884)			122,508,011
Principal
Amount
			Corporate Bonds and Notes (2.07%)
			Cable & Other Pay Television Services (0.18%)
	214,000		CCO Holdings LLC, 7.00%, 1/15/19 (a)			218,548
			Cogeneration Services & Small Power Producers (0.40%)
	450,000		Covanta Holding Corp., 7.25%, 12/1/20 (a)			468,562
			Electric Services (0.49%)
	517,101		Elwood Energy LLC, 8.159%, 7/5/26 (a)			573,982
			Hospital & Medical Service Plans (0.22%)
	250,000		Health Net, Inc., 6.375%, 6/1/17 (a)			261,315
			Oil & Gas Field Exploration Services (0.11%)
	169,000		CGG-Veritas, 7.75%, 5/15/17 (a) (b)			132,665
			Special Industry Machinery (0.41%)
	500,000		Novelis, Inc., 8.375%, 12/15/17 (a)			485,625
			Wholesale - Electronic Parts & Equipment, NEC (0.26%)
	300,000		Brightstar Corp., 9.50%, 12/1/16 (e)			303,000
			Total corporate bonds and notes (Cost $2,428,573)			2,443,697
Shares
			Real Estate Investment Trusts  (4.65%)
	34,500		HCP, Inc.			1,285,125
	100,000		New Residential Investment Corp.			1,310,000
	42,000		Tanger Factory Outlet Centers, Inc.			1,384,740
	22,500		Welltower Inc.			1,523,700
			Total real estate investment trusts (Cost $5,187,146)			5,503,565
			Reorganization Interests (0%)
	813,527		Penson Technologies LLC Units (c) (d) (Cost $ 0)			0
			Master Limited Partnerships (0.84%)
			Natural Gas Transmission (0.84%)
	40,000		Enterprise Products Partners LP (a) (Cost $374,214)			996,000
			Preferred Stocks (2.26%)
			Financial (2.26%)
	79,469		Annaly Capital Management, Inc., 7.625% Series C			1,961,295
	29,850		Hatteras Financial Corp., 7.625% Series A			706,251
	80,000		Solar Cayman Ltd. (a) (c) (d)			0
			Total preferred stocks (Cost $3,046,150)			2,667,546
			Money Market Fund (0.08%)
	93,057		SSgA Money Market Fund, 7 day annualized yield 0.00%) (Cost: $93,057)			93,057
			Total investments (Cost $132,026,024) (113.48%)			134,211,876
			Liabilities in excess of other assets (-13.48%)			(15,945,710	)
			Net assets (100.00%)		$	118,266,166
(a) All or a portion of these securities, have been segregated as collateral pursuant to the Committed Facility Agreement.
As of September 30, 2015, the value of securities pledged as collateral was $43,167,293.
(b) All or a portion of these securities were on loan pursuant to the Lending Agreement. As of September 30, 2015, the
value of securities on loan was $10,897,984.
(c) Non-income producing.
(d) Illiquid and/or restricted security that has been fair valued.
(e) These securities are exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These
securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.
ADR			American Depositary Receipt
LLC			Limited Liability Company
LP			Limited Partnership
PLC			Public Limited Company

 

 

Notes to Schedule of Portfolio Investments (Unaudited)

Valuation of Investments

Portfolio securities are valued by various methods depending on the primary market or exchange on which they trade. Most equity securities for which the primary market is in the United States are valued at the official closing price, last sale price or, if no sale has occurred, at the closing bid price. Most equity securities for which the primary market is outside the United States are valued using the official closing price or the last sale price in the principal market in which they are traded. If the last sale price on the local exchange is unavailable, the last evaluated quote or closing bid price normally is used. Certain debt securities may be priced through pricing services that may utilize a matrix pricing system which takes into consideration factors such as yields, prices, maturities, call features, and ratings on comparable securities or according to prices quoted by a securities dealer that offers pricing services. Open end investment companies are valued at their net asset value. Securities for which market quotations are not readily available or reliable and other assets may be valued as determined in good faith by Bexil Advisers LLC, the Investment Manager, under the direction of or pursuant to procedures approved by the Fund's Board of Trustees. Due to the inherent uncertainty of valuation, such fair value pricing values may differ from the values that would have been used had a readily available market for the securities existed. These differences in valuation could be material. A security's valuation may differ depending on the method used for determining value. The use of fair value pricing by the Fund may cause the net asset value of its shares to differ from the net asset value that would be calculated using market prices. A fair value price is an estimate and there is no assurance that such price will be at or close to the price at which a security is next quoted or next trades.

Value Measurements

Inputs to valuation methods are prioritized by a three level hierarchy as follows:

 

• Level 1 - unadjusted quoted prices in active markets for identical assets or liabilities including securities actively traded on a securities exchange.

 

• Level 2 -  observable inputs other than quoted prices included in level 1 that are observable for the asset or liability which may include quoted prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates, and similar data.

 

• Level 3 - unobservable inputs for the asset or liability including the Fund's own assumptions about the assumptions a market participant would use in valuing the asset or liability.

The availability of observable inputs can vary from security to security and is affected by a wide variety of factors including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for investments categorized in level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The inputs or methodology used for valuing investments are not necessarily an indication of the risk associated with investing in those securities.

 

The following is a description of the valuation techniques applied to the Fund's major categories of assets and liabilities measured at fair value on a recurring basis:

 

Equity securities (common and preferred stock) – Most publicly traded equity securities are valued normally at the most recent official closing price, last sale price, evaluated quote, or closing bid price. To the extent these securities are actively traded and valuation adjustments are not applied, they may be categorized in level 1 of the fair value hierarchy. Equities on inactive markets or valued by reference to similar instruments may be categorized in level 2.

 

Corporate bonds and notes – The fair value of corporate bonds and notes are normally estimated using various techniques which may consider, among other things, recently executed transactions in securities of the issuer or comparable issuers, market price quotations (where observable), bond spreads, and fundamental data relating to the issuer. Although most corporate bonds and notes may be categorized in level 2 of the fair value hierarchy, in instances where lower relative weight is placed on transaction prices, quotations, or similar observable inputs, they may be categorized in level 3.

 

Restricted and/or illiquid securities – Restricted and/or illiquid securities for which quotations are not readily available or reliable may be valued with fair value pricing as determined in good faith by the Investment Manager under the direction of or pursuant to procedures approved by the Fund's Board of Trustees. Restricted securities issued by publicly traded companies are generally valued at a discount to similar publicly traded securities. Restricted or illiquid securities issued by nonpublic entities may be valued by reference to comparable public entities or fundamental data relating to the issuer or both or similar inputs. Depending on the relative significance of valuation inputs, these instruments may be categorized in either level 2 or level 3 of the fair value hierarchy.

 

 

The following is a summary of the inputs used as of September 30, 2015 in valuing the Fund's assets. Refer to the schedules of portfolio investments for detailed information on specific investments.

There were no securities transferred from level 1 on December 31, 2014 to level 2 on September 30, 2015.

The following is a reconciliation of level 3 assets including securities valued at zero:

The Investment Manager, under the direction of the Fund's Board of Trustees, considers various valuation approaches for valuing assets categorized within level 3 of the fair value hierarchy. The factors used in determining the value of such assets may include, but are not limited to: the discount applied due to the private nature of the asset; the type of the security; the size of the asset; the initial cost of the security; the existence of any contractual restrictions on the security's disposition; the price and extent of public trading in similar securities of the issuer or of comparable companies; quotations or evaluated prices from broker-dealers and/or pricing services; information obtained from the issuer or analysts; an analysis of the company's or issuer's financial statements; or an evaluation of the forces that influence the issuer and the market in which the asset is purchased and sold. Significant changes in any of those inputs in isolation may result in a significantly lower or higher fair value measurement. The pricing of all fair value assets is normally reported to the Fund's Board of Trustees.

 

The following table presents additional information about valuation methodologies and inputs used for assets that are measured at fair value and categorized as level 3 as of September 30, 2015:

Cost for Federal Income Tax Purposes

As of September 30, 2015, for federal income tax purposes, subject to change, the aggregate cost of securities was $132,026,024 and net unrealized appreciation was $2,185,852, comprised of gross unrealized appreciation of $19,000,252 and gross unrealized depreciation of $16,814,400. The aggregate cost of investments for tax purposes will depend upon the Fund's investment experience during the entirety of its fiscal year and may be subject to changes based on tax regulations.

Illiquid and Restricted Securities 

The Fund owns securities which have a limited trading market and/or certain restrictions on trading and, therefore, may be illiquid and/or restricted. Such securities have been valued using fair value pricing. Due to the inherent uncertainty of valuation, fair value pricing values may differ from the values that would have been used had a readily available market for the securities existed. These differences in valuation could be material. Illiquid and/or restricted securities owned as of September 30, 2015 were as follows:

Market and Credit Risks

The Fund may invest in below investment grade fixed income securities, which carry ratings of BB or lower by Standard & Poor's Ratings Group, a division of The McGraw-Hill Companies, Inc., and/or Ba1 or lower by Moody's Investors Service, Inc. Investments in these below investment grade securities may be accompanied by a greater degree of credit risk than higher rated securities. Additionally, lower rated securities may be more susceptible to adverse economic and competitive industry conditions than investment grade securities. The relative illiquidity of some of these securities may adversely affect the ability of the Fund to dispose of such securities in a timely manner and at a fair price at times when it might be necessary or advantageous for the Fund to liquidate portfolio securities.

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.