Ancora Income Fund
Objective & Share Information
The Ancora Income Fund’s primary objective is a high level of current income, and its secondary objective is capital growth and appreciation.
|Symbol||Share Class||Expense Ratio*||Minimum*||Maximum Sales Charge|
* The 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 Fees and Expenses of Acquired Funds and certain other items) to 2.00% for Class C shares and 1.285% for Class I shares. These fee waivers will remain in effect until at least December 31, 2013 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. The gross expense ratio of the Class I shares would have been 1.41% without the Advisor’s waiver. See propsectus for additional expense ratio detail and minimum purchase eligibility requirements.
Philosophy & Process
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. 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 as of 3/31/14
|Q1||YTD||1 Yr.||3 Yrs.||5 Yrs.||Since Incep. (1/5/04)|
|Ancora Income Fund (AAIIX)||6.66%||6.66%||1.19%||5.36%||12.62%||5.25%|
|Ancora Income Fund (ANICX)||6.60%||6.60%||0.49%||4.93%||12.22%||4.90%|
|Barclays Agg. Bond Index||1.84%||1.84%||-0.09%||3.75%||4.80%||4.58%|
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 assesed 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.
Top Ten Holdings as of 3/31/14
|1||MFS Intermediate Income Trust||MIN||4.62%|
|2||The GDL Fund||GDL B||4.49%|
|3||Gabelli Dividend & Income Trust Preferred A||GDV A||3.83%|
|4||MFS Multimarket Income Trust||MMT||3.71%|
|5||Strategic Global Income Fund. Inc.||SGL||3.17%|
|6||MVC Capital, Inc. 7.25% 1/15/23 Series||MVCB||3.09%|
|7||Citigroup, Inc. Cum Pfd Ser L 6.875||C L||3.06%|
|8||Public Storage Pfd X 5.2%||PSA X||2.99%|
|9||Saratoga Investment Corp 7.50%||SAQ||2.86%|
|10||Legg Mason BW Global Income Opportunities Fund||BWG||2.85%|
- Direct Application (click here)
- Pershing LLC
- Charles Schwab
- TD Ameritrade
- National Financial Services
Additional Purchase Information: Dan Hyland, Managing Director, Marketing and Client Services, email@example.com, 216-825-4000
General Risk Disclosures
Investors should consider the investment objectives, risks, charges and expenses of the funds carefully before investing. This and other information are contained in the fund’s prospectus and summary prospectus, if available, which may be obtained by contacting your Ancora representative, financial advisor or by clicking here.
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 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.