Ancora Dividend Value Equity Fund
Objective
The Ancora Dividend Value Equity Fund’s primary objective is to provide growth of income and long-term capital appreciation.
People
Key Stats
| Share Class | I Share |
| Gross Expense Ratio | 1.16% |
| Net Expense Ratio1 | 1.00% |
| Minimum2 | $5,000 |
| Max. Sales Charge | - |
| Inception Date | May 7, 2019 |
Documents
Philosophy
We seek to own undervalued stocks of well-established companies in the large company capitalization range. These companies should have attractive and sustainable dividends and the potential for rising income. We define large as companies with market caps over $2 billion. Our goal is to provide superior long-term returns with the potential for attractive income and capital appreciation.
Our focus is on leading companies with competitive brand positioning, solid balance sheets along with consistent dividend, cash flow and earnings growth. We feel that dividend income provides a distinct advantage when fixed income yields are low, the outlook for inflation is uncertain and the broader market is volatile. In addition, dividend payers tend to be less volatile and outperform non-dividend paying stocks over the long term.
Process
- Portfolio Construction: Typically 35-45 portfolio holdings that are fully diversified across economic sectors.
- Buy Discipline: We are constantly screening for high quality companies with good brand recognition and strong competitive positions in their key markets with solid balance sheets, consistent cash flow and generally consistent dividend growth. We focus on companies that are trading at a higher dividend yield relative to the S&P 500 at attractive valuation levels and with a discount to their intrinsic value. We put an emphasis on dividend payment history, return on invested capital and cash flow sustainability. Our strategy allows for the inclusion of companies that will be initiating a dividend if we feel that they qualify under our other parameters.
- Sell Discipline: We sell stocks that have met our defined intrinsic value target or when we feel that fundamentals have deteriorated and potential downside outweighs the opportunity for gain.
- Risk Management: Position sizes are limited to 8% of the portfolio and sectors are limited to 25%.
Performance
Total Returns at NAV (%)
As of 3/31/2024
| QTD | YTD | 1Y | 3Y | ITD | |
|---|---|---|---|---|---|
| Ancora Dividend Value Equity Fund (ADEIX) | 6.66% | 6.66% | 22.43% | 8.59% | 11.27% |
| Russell 1000 Value Index | 8.99% | 8.99% | 20.27% | 8.11% | 9.9% |
Hypothetical Growth of $10,000
As of 3/31/2024
Performance quoted represents past performance and is not a guarantee or a reliable indicator of future results. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed. Current performance may be lower or higher than average annual returns shown. A Redemption Fee of 2% may be assessed on shares held less than 90 days. The performance data presented does not reflect the deduction of this fee and if reflected would reduce the performance returns. The inception date for the I share class of the fund is 5/7/2019.
Composition
Top 10 Holdings
As of 3/31/2024
| Description | Symbol | Weight |
|---|---|---|
| Broadcom, Inc. | AVGO | 7.43 |
| Microsoft Corp. | MSFT | 6.28 |
| AbbVie, Inc. | ABBV | 5.89 |
| JP Morgan Chase & Co. | JPM | 5.36 |
| Eaton Corporation Plc. | ETN | 5.24 |
| UnitedHealth Group, Inc. | UNH | 4.74 |
| The Home Depot, Inc. | HD | 4.52 |
| EOG Resources, Inc. | EOG | 4.38 |
| Apple, Inc. | AAPL | 4.18 |
| Chevron Corp. | CVX | 4.01 |
| Total | 52.03 | |
| Cash | 1.39 |
Sector Weights
As of 3/31/2024
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.
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.
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 Dividend Value Equity Fund Risk Disclosures
Speculative Nature. The Fund intends to invest in securities that are more speculative than other securities and, therefore, subject to a substantial decline or total loss in value. Because of the speculative nature of these securities, shareholders of the Fund are exposed to a high degree of risk.
Large 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. Larger, more established companies in which the Fund invests 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.
ADR Risk. Because the Fund may invest in American Depository Receipts (ADRs) whether in the United States or in local foreign markets, the Fund’s share price may be more affected by geopolitical or foreign economic conditions, accounting or auditing standards than otherwise.
Sector Risk. The Fund may allocate more assets to certain industry sectors than others, which may cause it to be more susceptible to any developments which may affect those sectors with heavier weightings.
Value Investing Risk. Value investing attempts to identity companies selling at a discount to their intrinsic value. Value investing presents the risk that the holdings or securities may never reach their full market value because the market fails to recognize what the portfolio manager considers the true business value or because the portfolio manager has misjudged those values. In addition, value investing may fall out of favor and underperform growth or other style investing during given periods.
Benchmark. The Ancora Dividend Value Equity Fund utilizes the Russell 1000 Value Index as the benchmark. The Russell 1000 Value Index is a subset of the securities found in the Russell 1000 representing approximately 700 securities in the Russell 1000 Value Index. The stocks included in the value index are selected based on a “probability” of value as measured by their relative book-to-price (B/P) ratio. 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 1.00% for Class I shares. This fee waiver will remain in effect until at least October 1, 2024 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.