Ancora Income Fund
Objective
The Ancora Income Fund’s primary objective is a high level of current income, and its secondary objective is capital growth and appreciation.
People
Kevin Gale
Portfolio Manager
Key Stats
| Share Class | I Share |
| Gross Expense Ratio | 0.93% |
| Net Expense Ratio1 | 0.93% |
| Minimum2 | $5,000 |
| Max. Sales Charge | - |
| Inception Date | January 5, 2004 |
Documents
Philosophy
The Ancora Income Fund is appropriate for investors who want to maximize their current income from a high quality investment portfolio. Ancora Advisors actively manages the fund with a close eye on current economic conditions and future interest rates.
Process
The Fund pursues its income objective by investing primarily in income-producing securities (such as debt securities, preferred stocks, high dividend-bearing common shares and common and preferred shares of closed-end investment companies (also known as “closed-end funds”) having portfolios consisting primarily of income-producing securities). Under normal circumstances, at least 80% of the assets of the Fund will be invested in income-producing securities. Certain of the debt securities and preferred stocks in which the Fund invests may be convertible into common shares (“convertible securities”). The Fund will pursue its capital appreciation objective by investing in shares of closed-end funds and convertible securities of large, small and mid-sized companies. The Fund will invest only in securities of companies with market capitalizations of more than $500 million, except that the Fund may invest in closed-end funds with market capitalizations of less than that amount.
Performance
Total Returns at NAV (%)
As of 9/30/2024
| QTD | YTD | 1Y | 3Y | 5Y | 10Y | ITD | |
|---|---|---|---|---|---|---|---|
| Ancora Income Fund (AAIIX) | 5.66% | 11.2% | 17.3% | 2.36% | 3.92% | 4.56% | 4.94% |
| Bloomberg US Aggregate Index | 5.2% | 4.45% | 11.57% | -1.39% | 0.33% | 1.84% | 3.29% |
Hypothetical Growth of $10,000
As of 9/30/2024
The inception date for the I share class of the fund is 01/05/2004. Periods less than one year are not annualized.
The performance quoted represents past performance, which does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The returns shown do not reflect deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Current performance of the Fund may be lower or higher than the performance quoted. The Fund’s investment objectives, risks, charges and expenses must be considered carefully before investing. Performance data current to the most recent month end may be obtained by calling 1-866-6-ANCORA.
Composition
Top 10 Holdings
As of 9/30/2024
| Description | Symbol | Weight |
|---|---|---|
| Apollo Global Management, Inc., 7.625% | APOS | 2.62 |
| The Allstate Corp., 7.375% | ALL-J | 2.55 |
| Whirlpool Corp. | WHR | 2.06 |
| Fifth Third Bancorp, 7.99428% | 316773CR9 | 2.04 |
| Citizens Financial Group, Inc., 7.375 | CFG-H | 1.95 |
| Citigroup, Inc., 7.625% | 172967PE5 | 1.93 |
| Affiliated Managers Group, Inc. 6.750% | MGRE | 1.62 |
| Brookfield Infrastructure Finance ULC, 7.250% | BIPJ | 1.6 |
| Annaly Capital Management, Inc., 6.750% | NLY-I | 1.53 |
| Stifel Financial Corp., 4.500% | SF-D | 1.53 |
| Total | 19.43 | |
| Cash | 3.59 |
Portfolio weights are subject to change without notice and may not add up to 100% due to rounding.
General Risk Disclosures
Carefully consider the Fund’s investment objectives, risks and expenses carefully before investing. This and other information can be found in the Fund’s prospectus, and if available, summary prospectus, which may be obtained by calling 1-866-6-ANCORA or by visiting www.ancorafunds.com. Read the prospectus carefully before investing. Investing involves risk, including possible loss of capital.
Ancora Funds are distributed by Arbor Court Capital, LLC. Member FINRA and SIPC. Find out more about the background of this firm on FINRA’s BrokerCheck. Ancora Advisors LLC is the investment advisor to the Funds and receives a fee from the Funds for its services. Ancora Holdings Group LLC is the parent company. You may contact the company at: 6060 Parkland Boulevard, Suite 200, Cleveland, Ohio 44124, Phone: 216-825-4000, or by going to www.ancora.net.
NOT FDIC INSURED – MAY LOSE VALUE – NO BANK GUARANTEE
Ancora Income Fund Risk Disclosures
Debt Securities Risks. The Fund’s portfolio will also be exposed to the following additional risks in connection with its investments in debt securities and in closed-end funds which invest primarily in debt securities:
- Prices of debt securities may fall in response to interest rate changes for similar securities. Generally, when interest rates rise, prices of debt securities fall. The net asset value of the Fund may decrease during periods of rising interest rates.
- An issuer of debt securities may default (fail to repay interest and principal when due). If an issuer defaults or the risk of such default is perceived to have increased, the Fund will lose all or part of its investment. The net asset value of the Fund may fall during periods of economic downturn when such defaults or risk of defaults increase.
- Securities rated below investment grade, also known as junk bonds, are speculative and generally entail greater risks than investment grade securities. For example, their prices are more volatile, their values are more negatively impacted by economic downturns, and their trading market may be more limited.
Closed-End Funds. The shares of many closed-end funds frequently trade at a price per share which is less than the net asset value per share, the difference representing the “market discount” of such shares. The Fund purchases shares of closed-end funds which trade at a market discount. However, there can be no assurance that the market discount on shares of any closed-end fund will ever decrease. In fact, it is possible that this market discount may increase and the Fund may suffer capital losses due to further decline in the market price of the securities of such closed-end funds, thereby adversely affecting the net asset value of the Fund’s shares. The closed-end funds in which the Fund invests typically pay an advisory fee for the management of their portfolios, as well as other expenses. Therefore, the investment by the Fund in closed-end funds often results in a duplication of advisory fees and other expenses, thereby resulting in a lower return for the Fund than would be the case in the absence of such duplication. In addition, since these closed-end funds invest in debt securities, they are subject to the same risks described above in “Debt Securities Risks.” Also, certain of the closed-end funds in which the Fund invests may invest part or all of their assets in debt securities of foreign issuers. Such investments involve the following additional risks:
- Because foreign securities ordinarily are denominated in currencies other than the U.S. dollar, changes in foreign currency exchange rates will affect the closed-end fund’s net asset value, the value of dividends and interest earned, gains and losses realized on the sale of securities and net investment income and capital gain, if any, to be distributed to shareholders by the closed-end fund. If the value of a foreign currency declines against the U.S. dollar, the value of the closed-end fund’s assets denominated in that currency will decrease. Although these closed-end funds may enter into “hedging” transactions intended to minimize the risk of loss due to a decline in the value of the subject foreign currency, in some cases all or a portion of the closed-end fund’s portfolio remains subject to this risk of loss.
- There are additional risks relating to political, economic, or regulatory conditions in foreign countries; withholding or other taxes; trading, settlement, custodial, and other operational risks; and the potentially less stringent investor protection and disclosure standards of foreign markets. All of these factors can make foreign investments of such closed-end funds more volatile and potentially less liquid than U.S. investments.
Large Cap Companies. Larger, more established companies tend to operate in mature markets, which often are very competitive. Larger companies also do not tend to respond quickly to competitive changes caused by technology or consumer preferences.
Small and Mid-Cap Companies. The principal risks of investing in the Fund include the risks of investing in equity securities. The prices of equity securities fluctuate based on changes in a company’s activities and financial condition and in overall market and financial conditions. The small and mid cap companies in which the Fund invests are especially sensitive to these factors and therefore may be subject to greater share price fluctuations than other companies. Also, securities of these companies are often less liquid, thus possibly limiting the ability of the Fund to dispose of such securities when the Advisor deems it advisable to do so. As a result of these factors, securities of these small and mid cap companies may expose shareholders of the Fund to above average risk.
Benchmark. The Ancora Income Fund utilizes the Bloomberg US Aggregate Index as a benchmark. The Bloomberg US Aggregate Index, a widely recognized unmanaged index of bond prices which is representative of a broader market and range of securities than is found in the composite’s portfolio. Indexes are unmanaged and one cannot invest directly in an index.
1The Advisor and the Trust have entered into a fee waiver agreement whereby the Advisor has contractually agreed to waive a portion of its fees in order to limit total annual fund operating expenses (excluding Acquired Fund Fees and Expenses and dividend expenses relating to short sales, interest, taxes, and brokerage commissions) to 1.29% for Class I shares. These fee waivers will remain in effect until at least October 1, 2025 but can be terminated by a vote of the Board of Trustees of the Fund if they deem the termination to be beneficial to the Fund shareholders. The Advisor is entitled to recover such waived amounts within the same fiscal year in which the Advisor reduced its fee. No recoupment will occur except to the extent that the Fund’s expenses, together with the amount recovered, do not exceed the applicable expense limitation.
2See the prospectus for minimum purchase eligibility requirements.