UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-21418
Ancora Trust
(Exact name of registrant as specified in charter)
6060 Parkland Boulevard, Suite 200
Cleveland, Ohio 44124
(Address of principal executive offices)(Zip code)
Richard A. Barone
c/o Ancora Trust
6060 Parkland Boulevard, Suite 000
Cleveland, Ohio 44124
(Name and address of agent for service)
Copies to:
Michael J. Meaney, Esq.
McDonald Hopkins Co., LPA
2100 Bank One Center
600 Superior Avenue East
Cleveland, Ohio 44114
Registrant's telephone number, including area code: 216-825-4000
Date of fiscal year end: December 31
Date of reporting period: June 30, 2014
Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.
Item 1. Reports to Stockholders.
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INTRODUCTION
TABLE OF CONTENTS
INTRODUCTION INCLUDING SHAREHOLDER LETTER……….………....…..….1
ANCORA INCOME FUND……….……………………………………………………….……..4
ANCORA EQUITY FUND…….………………….……………..………………………….…....8
ANCORA/THELEN SMALL-MID CAP FUND…………….……………………….…...13
ANCORA MICROCAP FUND…………….………….….……..……………………….…….19
ANCORA SPECIAL OPPORTUNITY FUND….……….…………….……………….….26
FINANCIAL REVIEW…..………………………………………...............................………..31
FUND EXPENSES………………………………..……………………………….….…....…….61
TRUSTEES & OFFICERS & SERVICE PROVIDERS.………….….….......................64
1-866-6-ANCORA
Please feel free to dial our toll-free number to speak directly to a knowledgeable representative who can answer any questions or assist you with any issues concerning your account.
www.ancorafunds.com
This report and the financial statements contained herein are provided for the general information of the shareholders of the Ancora Funds. Investors should carefully consider before investing each Fund’s investment objective, risks and expenses. For a prospectus, which contains that information and more information about each Fund, please call 866-626-2672 or visit our website at www.ancorafunds.com. Please read it carefully before you invest or send money.
INTRODUCTION
LETTER TO SHAREHOLDERS
Dear Shareholder:
Brief Commentary
In the 2013 Annual Report to Shareholders we pointed out that, here in the United States, the income gap that currently exists has little chance of being resolved in the near future due to the poor quality of mass education and the lack of technical skills versus the rest of the advanced and emerging countries of the world. While the political establishment has paid lip service to the need for education and technical training for the success of future generations, it has done little to assure that we are heading in this direction.
Instead, it has relied on the old Keynesian model of priming the pump with dollars, expecting that those dollars would circulate among the working classes in the form of better wages and increased consumption. For the most part this attempt to jump start the economic engine has failed for most Americans. However, it has been a resounding success for the top 1 percent who have seen a substantial increase in personal wealth. The line of least resistance is to simply dismiss these facts as unintended consequences and herald the fact that the unemployment rate appears to be declining. The problem, however, is more structural and as the saying goes, “Give a man a fish…”
So how did all of those deficit spending dollars end up in the hands of so few? We know how they entered the system – unemployment compensation, social welfare programs, various windmill projects – to name a few. Rather than circulate, however, those dollars ended up in the banking system. From 2008 to the present, excess reserves in the banking system went from essentially zero to well over $2 trillion. In their effort to fight the last battle of the last war - the financial crisis of 2008-2009, Congress, the Administration, and the Federal Reserve have so tightly regulated and provided incentives for bankers to hold funds that only the more wealthy individuals and corporations have been able to gain access to the funds resulting in a very different outcome than perhaps what policy makers intended.
While most Americans generally spend additional dollars on non-discretionary consumption, more wealthy individuals and other structured entities tend to invest what they borrow, especially when market returns from stocks and bonds are higher than the interest on borrowed funds. Among the reasons corporations have improved profits over the past five years, even though revenues have not improved, is the simple fact that they have refinanced and restructured their balance sheets with low interest loans. Wealthy individuals, hedge funds and real estate developers have prospered for the same reasons.
Against this backdrop, and with the Federal Reserve keeping interest rates artificially low, it’s no wonder that stocks have climbed in spite of some rather mediocre revenue numbers; and it’s no wonder that investment themes seem to favor undervaluation metrics rather than long-term growth projections. So, if you’re looking for clues concerning the future of equity values and economic growth, you will want to keep an eye on what’s happening to all those excess dollars in the banking system.
Ancora Income Fund
After spiking in May, 2013, interest rates continued to rise into January, 2014. The duration of the portfolio was extended through this period in order to take advantage of the sharp price decline in the long end of the bond market. Since January, interest rates have declined once again, and the Ancora Income Fund’s portfolio has had a meaningful increase in value. The fund has taken advantage of this opportunity to reduce duration resulting in a decrease of risk and volatility.
Through the first six months of 2014, the Fund produced a total return of 10.41% for the Class I shares and 10.14% for the Class C shares compared to the 3.92% rise in the Barclay’s Aggregate Bond index during that same period.
Ancora Equity Fund
Through the first half of 2014, the Ancora Equity Fund gained 6.75% for the Class I shares and 6.40% for the Class C shares, slightly under the 7.14% return for the S&P 500 Index. The Ancora Equity “I” shares have pretty closely matched the total return for this Index throughout its 10 year history.
Among our best performers in 2014 were Alcoa, Apache, and Helmerich and Payne while ABB, General Electric, and J.P. Morgan held back our results. We expect continued rotation in the performance of the various industry groups making the selection of individual equities even more important as the year progresses.
Ancora/Thelen Small Mid Cap Fund
The Ancora Thelen Small-Mid Fund was up 5.00% and 4.59% for the Class I and Class C shares, respectively. This compares to a return of 5.94% for the Russell 2500. The fund began the year where it left off in 2013 with a strong advance through February, before giving ground to the Index as the market turned much more risk averse. Mid cap stocks showed a strong rebound after being relative underperformers to small cap for the previous two years. The move away from the smaller capitalization stocks hurt the fund which held a slight overweight position. The overweighting in smaller stocks more than offset positive relative stock selection across each of the major market cap sectors.
The strongest stocks year to date include Sequential Brands Group, a licensor of major apparel and accessories brands. The Company, a recent addition to the portfolio, advanced more than 100%. Other strong performing stocks in the first half included Mallinckrodt, Plc, a global specialty pharmaceutical and medical imaging company and Hillshire Brands Company, the maker of specialty food products. Hillshire Brands Company accepted a takeover offer from Tyson Foods at $63 per share after a bidding war. Finally, Beam, Inc., the international spirits company, was bought by Suntory Holdings at a substantial premium to its previous trading price. On the negative side was Post Holdings, Inc. a fast growing manufacturer of health and wellness foods, primarily sold in the center of the grocery store and Sizmek, Inc. an online video distribution and analytics company.
Ancora Microcap Fund
So far in 2014, The Ancora Microcap Fund has significantly exceeded the performance of its Benchmark with a return of 5.58% for the Class I shares and 5.04% for the Class C shares versus 1.55% for The Russell Microcap Index.
After outperforming during a strong first quarter of 2014, we were pleased to also be able to outperform in the second quarter when Microcaps were under pressure. As investors became risk adverse and the Microcap Index produced negative returns, we were modestly positive.
The modes single digit return also masked significantly volatility within the portfolio. Fortunately, the large declines were in small holdings such as Kid Brands and WPCS, while significant gains occurred in large positions such as Albany Molecular and Hawaiian Holdings.
Ancora Special Opportunity Fund
The Ancora Special Opportunity Fund returned 7.93% for the Class I shares and 7.46% for the Class C shares during the first six months of 2014 Outperforming the Wilshire 5000 Index return of 5.88% for the first half of 2014
Among the best performers in 2014 were Allegheny Technologies, Lakeland Industries and Weatherford International. Companies holding down our returns included Leucadia, Cliffs Natural Resources and Active Power.
Sincerely,
![[ancorancsrs003.gif]](https://capedge.com/proxy/N-CSRS/0001162044-14-001099/ancorancsrs003.gif)
Richard A Barone
Chairman
ANCORA INCOME FUND
INVESTMENT OBJECTIVE:
THE ANCORA INCOME FUND SEEKS TO PROVIDE INVESTORS A HIGH LEVEL OF CURRENT INCOME WITH A SECONDARY OBJECTIVE OF CAPITAL APPRECIATION.
| | | | |
| PORTFOLIO MANAGER:
Richard A. Barone Chairman, Ancora Advisors _________________________
NET ASSETS:
$25.7 MILLION* _________________________
INCEPTION DATE:
JANUARY 5, 2004 _________________________
TICKERS:
CLASS C – ANICX CLASS I – AAIIX ________________________
MINIMUM INITIAL INVESTMENT:
CLASS C – $5,000 CLASS I – $5,000
* As of June 30, 2014 |
| TOP HOLDINGS: JUNE 30, 2014 (d) |
| NAME | % OF NET ASSETS |
| First American Funds Gov't Obligation Class Y | 7.17% |
| MFS Multimarket Income Trust | 4.54% |
| The GDL Fund 3.0% 3/26/18 Pfd | 4.31% |
| Wells Fargo Adv. Multi-Sector Income Fund | 3.77% |
| Gabelli Dividend & Income Trust Preferred A | 3.76% |
| Ares Capital Corp. Sr Nt 10/1/22 - 5.875% | 3.24% |
| Saratoga Investment Corp 7.50% | 3.18% |
| Strategic Global Income Fund, Inc. | 3.10% |
| Citigroup, Inc. Cum Pfd Ser L 6.875 | 3.02% |
| MVC Capital, Inc. 7.25% 1/15/23 Series | 2.96% |
| | |
| | |
| | |
SECTOR DIVERSIFICATION: JUNE 30, 2014 (d) |
NAME | % OF NET ASSETS |
Direct Trust Certificates | 33.84% |
Closed-End Income Funds | 22.36% |
REIT Senior Securities | 19.08% |
Closed-End Fund, Senior Securities | 8.07% |
Money Market Funds | 7.17% |
Traditional Preferred | 6.33% |
Third Party Bond Trust Certificates | 2.65% |
Other Assets in Excess of Liabilities | 0.49% |
| | | | | |
TOTAL RETURNS: JUNE 30, 2014 (d) |
| YTD 2014 | ONE YEAR | THREE YEARS | FIVE YEARS | SINCE INCEP (a) |
ANCORA INCOME FUND - C(b) | 10.14% | 6.69% | 5.07% | 9.07% | 5.05% |
ANCORA INCOME FUND - I(b) | 10.41% | 7.41% | 5.62% | 9.49% | 5.38% |
BARCLAY’s AGG. INDEX(c) | 3.92% | 4.38% | 3.67% | 4.70% | 4.60% |
a)
Inception data reflects the annualized return since 1/05/04.
b)
Return figures reflect any change in price per share and assume the reinvestment of all distributions. The Index is an unmanaged benchmark that assumes reinvestment of all distributions and excludes the effect of taxes and fees.
c)
The Barclay’s Aggregate Bond Index is a widely recognized unmanaged index of bond prices and is representative of a broader market and range of securities than is found in the Fund’s portfolio. Individuals cannot invest directly in the Index.
d)
Data is unaudited.
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 1-866-626-2672.
ANCORA INCOME FUND
PERFORMANCE ILLUSTRATION (UNAUDITED)
![[ancorancsrs005.gif]](https://capedge.com/proxy/N-CSRS/0001162044-14-001099/ancorancsrs005.gif)
The chart above assumes an initial investment of $1,000,000 made on January 5, 2004 (commencement of Fund operations) and held through June 30, 2014. THE FUND’S RETURN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. The returns shown assume the reinvestment of all distributions and do not reflect deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Investment returns and principal values will fluctuate so that your shares, when redeemed, may be worth more or less than their original purchase price.
Past performance is no guarantee of future results. Performance is unaudited.
ANCORA INCOME FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
| | | |
| Shares | | Value |
Corporate Bond Trust Certificates - 36.5% | | | |
| | | |
Direct Trust Certificates - 33.84% | | | |
Affiliated Managers Group, Inc. Sr Nt Exp 10/15/22 - 5.25% | 17,000 | | $ 446,102 |
American Finl Group Inc. Ohio Sr Nt Exp 8/25/42 - 5.75% | 12,500 | | 308,875 |
Ares Capital Corp. Sr Nt 10/1/22 - 5.875% | 32,000 | | 832,000 |
Aviva Plc Cap Sec 12/1/41 - 8.25% | 10,000 | | 284,500 |
Breitburn Energy Partners 8.25% 12/31/49 Pfd | 5,000 | | 127,250 |
Dynex Cap Inc. Pfd Ser B - 7.625% | 12,000 | | 288,600 |
Hercules Technology Growth Cap Sr NT 9/30/19 - 7.0% | 17,000 | | 445,060 |
KKR Financial Holdings Pfd Ser A - 7.375% | 10,000 | | 261,200 |
Main Street Capital Corp. 6.125% 4/1/23 Series | 30,060 | | 743,684 |
Merrill Lynch Preferred D - 7.0% | 12,000 | | 309,360 |
MVC Capital, Inc. 1/15/23 Series - 7.25% | 30,000 | | 760,500 |
Prospect Capital Corp 6.95% Exp 11/15/22 | 15,000 | | 389,700 |
Prudential Financial, Inc. Jr Sub Nt 3/15/53 - 5.70% | 27,500 | | 677,875 |
Qwest Corp. 6/1/53 - 6.125% | 10,000 | | 232,800 |
Saratoga Investment Corp. 5/31/20 - 7.50% | 32,000 | | 816,000 |
Seaspan Corp. 6.375% 4/30/19 Pfd | 5,000 | | 127,750 |
Selective Ins Group Inc. Sr Nt 2/9/43 - 5.875% | 5,000 | | 118,050 |
Stanley Black & Decker Inc. 7/25/52 - 5.75% | 25,000 | | 609,250 |
Tennessee Valley Auth Putable Automatic Rate 6.75% | 13,345 | | 318,278 |
Torchmark Corp. 12/15/52 - 5.875% | 12,500 | | 307,625 |
W.R. Berkley Corp. Pfd 4/30/53 - 5.625% | 12,000 | | 279,000 |
| | | 8,683,460 |
| | | |
Third Party Bond Trust Certificates - 2.65% | | | |
PreferredPlus Tr Ser Ver 1 Tr CTF Cl A 12/01/30 - 7.625% | 14,238 | | 367,910 |
Strats Tr Goldman Sachs Group 2/15/33 - 0.0% (a) | 17,695 | | 313,202 |
| | | 681,111 |
| | | |
TOTAL CORPORATE BOND TRUST CERTIFICATES (Cost $9,177,986) | | | 9,364,571 |
| | | |
Investment Companies - 30.43% | | | |
| | | |
Closed-End Income Funds - 22.36% | | | |
BlackRock Credit Allocation Income Trust IV | 41,200 | | 566,500 |
Legg Mason BW Global Income Opportunities Fund | 40,000 | | 734,000 |
MFS Charter Income Trust | 19,700 | | 182,028 |
MFS Intermediate Income Trust | 135,000 | | 712,800 |
MFS Multimarket Income Trust | 175,000 | | 1,163,750 |
Strategic Global Income Fund, Inc. | 85,000 | | 794,750 |
Wells Fargo Advantage Multi-Sector Income Fund | 65,000 | | 968,500 |
Western Asset/Claymore Inflation-Linked Opportunit | 50,000 | | 615,500 |
| | | 5,737,828 |
* See accompanying notes which are an integral part of the financial statements
ANCORA INCOME FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
| | | |
| Shares | | Value |
Closed-End Funds, Senior Securities - 8.07% | | | |
Gabelli Dividend & Income Trust Preferred A - 5.875% | 22,000 | | $ 1,106,600 |
The GDL Fund Ser A 3/26/18 - 0.0% (a) | 38,500 | | 964,425 |
| | | 2,071,025 |
| | | |
TOTAL INVESTMENT COMPANIES (Cost $7,540,298) | | | 7,808,853 |
| | | |
Traditional Preferred- 6.33% | | | |
Citigroup, Inc. Cum Pfd Ser L 6.875 | 30,000 | | 774,300 |
Kayne Anderson MLP Investment Co. Pfd Shs 4/1/19 - 4.25% | 23,498 | | 598,024 |
Schwab Charles Corp. Pfd Ser B - 6.0% | 10,000 | | 252,300 |
| | | 1,624,624 |
| | | |
TRADITIONAL PREFERRED (Cost $1,580,869) | | | 1,624,624 |
| | | |
REIT Senior Securities - 19.08% | | | |
American Capital Agency 7.75% Ser B 12/31/49 pfd | 5,000 | | 124,400 |
American Realty Capital Pptys, Inc. - 6.70% Ser F | 15,000 | | 351,450 |
Apollo Coml Real Estate Pfd Ser A - 8.625% | 20,000 | | 519,800 |
Apollo Invt Corp. Sr Nts 7/15/43 - 6.875% | 15,000 | | 368,250 |
Chesapeake Lodging Tr Pfd Ser A - 7.75% | 8,500 | | 226,525 |
Colony Financial, Inc. 7.5% Series B Pfd | 5,000 | | 125,001 |
Digital Realty Trust, Inc. Preferred Series G | 12,000 | | 264,480 |
Entertainment Properties Pfd Ser F - 6.625% | 5,500 | | 134,530 |
Pebblebrook Hotel Tr Pfd Ser C - 6.50% | 28,000 | | 659,680 |
Public Storage 6% series Z Pfd | 24,500 | | 608,090 |
Public Storage Pfd X - 5.2% | 6,500 | | 144,689 |
RAIT Financial Trust Pfd 7.625% 4/15/24 | 18,000 | | 446,040 |
Summit Hotel Properties, Inc. Pfd Ser A - 9.25% | 10,000 | | 271,700 |
Summit Hotel Properties, Inc. Pfd Ser B - 7.875% | 5,000 | | 130,000 |
Winthrop Rlty Tr Pfd Shs Int Ser D - 9.25% | 20,000 | | 520,000 |
| | | 4,894,635 |
| | | |
REIT SENIOR SECURITIES (Cost $4,717,616) | | | 4,894,635 |
| | | |
Money Market Funds - 7.17% | | | |
First American Funds Government Obligation Class Y 0.01% (a) | 1,840,373 | | 1,840,373 |
| | | 1,840,373 |
| | | |
TOTAL MONEY MARKET FUNDS (Cost $1,840,373) | | | 1,840,373 |
| | | |
TOTAL INVESTMENTS (Cost $24,857,142) 99.51% | | | 25,533,056 |
| | | |
Other Assets In Excess of Liablities - 0.49% | | | 125,577 |
| | | |
TOTAL NET ASSETS - 100.00% | | | $25,658,633 |
* See accompanying notes which are an integral part of the financial statements
(a) Variable rate security; the coupon rate shown represents the 7-day yield as of June 30, 2014.
ANCORA EQUITY FUND
INVESTMENT OBJECTIVE:
THE ANCORA EQUITY FUND SEEKS TO PROVIDE INVESTORS A HIGH TOTAL RETURN, A COMBINATION OF CAPITAL APPRECIATION IN THE VALUE OF ITS SHARES AS WELL AS INCOME.
| | | | |
| PORTFOLIO MANAGER:
Richard A. Barone Chairman, Ancora Advisors _________________________
NET ASSETS:
$9.6 MILLION* _________________________
INCEPTION DATE:
JANUARY 5, 2004 _________________________
TICKERS:
CLASS C – ANQCX CLASS I – ANQIX ________________________
MINIMUM INITIAL INVESTMENT:
CLASS C – $5,000 CLASS I – $5,000
* As of June 30, 2014 |
| TOP HOLDINGS: JUNE 30, 2014 (d) |
| NAME | % OF NET ASSETS |
| Boulder Total Return Fund, Inc. | 6.66% |
| Tri Continental Corp. | 6.54% |
| Celgene Corp. | 6.25% |
| First American Funds Gov't Obligation Class Y | 5.96% |
| EMC Corp. Massachusetts | 4.65% |
| Ameriprise Financial, Inc. | 4.36% |
| Apache Corp. | 4.18% |
| Qualcomm, Inc. | 4.11% |
| Parker Hannifin Corp | 3.92% |
| Freeport-McMoRan Copper & Gold, Inc. | 3.79% |
| | |
| | |
| | |
SECTOR DIVERSIFICATION: JUNE 30, 2014 (d) |
NAME | % OF NET ASSETS |
Information Technology | 20.66% |
Health Care | 18.07% |
Investment Companies | 15.40% |
Industrials | 10.70% |
Financials | 10.03% |
Energy | 8.66% |
Materials | 6.85% |
Money Market Funds | 5.93% |
Consumer Discretionary | 3.69% |
| | | | | |
TOTAL RETURNS: JUNE 30, 2014 (d) |
| YTD 2014 | ONE YEAR | THREE YEARS | FIVE YEARS | SINCE INCEP (a) |
ANCORA EQUITY FUND - C(b) | 6.40% | 23.95% | 11.70% | 15.15% | 6.31% |
ANCORA EQUITY FUND - I(b) | 6.75% | 24.90% | 12.38% | 15.79% | 6.86% |
S&P 500 INDEX(c) | 7.14% | 24.61% | 16.58% | 18.83% | 7.79% |
a)
Inception data reflects the annualized return since 1/05/04.
b)
Return figures reflect any change in price per share and assume the reinvestment of all distributions. The Index is an unmanaged benchmark that assumes reinvestment of all distributions and excludes the effect of taxes and fees.
c)
The S&P 500 Index, an unmanaged index, consists of 500 stocks chosen for market size, liquidity, and industry group representation. It is market-value weighted (stock price times number of shares outstanding), with each stock’s weighting in the Index proportionate to its market value and not available for purchase. If you were to purchase the securities that make up this index, your returns would be lower once fees and/or commissions are deducted
d)
Data is unaudited.
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 1-866-626-2672
ANCORA EQUITY FUND
PERFORMANCE ILLUSTRATION (UNAUDITED)
![[ancorancsrs007.gif]](https://capedge.com/proxy/N-CSRS/0001162044-14-001099/ancorancsrs007.gif)
The chart above assumes an initial investment of $1,000,000 made on January 5, 2004 (commencement of Fund operations) and held through June 30, 2014. THE FUND’S RETURN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. The returns shown assume the reinvestment of all distributions and do not reflect deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Investment returns and principal values will fluctuate so that your shares, when redeemed, may be worth more or less than their original purchase price.
Past performance is no guarantee of future results. Performance is unaudited.
ANCORA EQUITY FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
| | | |
| Shares | | Value |
Common Stocks - 79.05% | | | |
| | | |
Auto Components - 1.04% | | | |
Johnson Controls, Inc. | 2,000 | | $ 99,860 |
| | | 99,860 |
| | | |
Biotechnology - 6.25% | | | |
Celgene Corp. (a) | 7,000 | | 601,160 |
| | | 601,160 |
| | | |
Capital Markets - 7.09% | | | |
Ameriprise Financial, Inc. | 3,500 | | 420,000 |
Bank of New York Mellon Corp. | 7,000 | | 262,360 |
| | | 682,360 |
| | | |
Communications Equipment - 6.7% | �� | | |
Cisco Systems, Inc. | 10,000 | | 248,500 |
Qualcomm, Inc. | 5,000 | | 396,000 |
| | | 644,500 |
| | | |
Computers & Peripherals - 4.65% | | | |
EMC Corp. Massachusetts | 17,000 | | 447,780 |
| | | 447,780 |
| | | |
Diversified Financial Services - 2.99% | | | |
JP Morgan Chase & Co. | 5,000 | | 288,100 |
| | | 288,100 |
| | | |
Electrical Equipment - 1.67% | | | |
ABB Ltd. Sponsored ADR(c) | 7,000 | | 161,140 |
| | | 161,140 |
| | | |
Electronic Equipment, Instruments - 1.6% | | | |
Corning, Inc. | 7,000 | | 153,650 |
| | | 153,650 |
| | | |
Energy Equipment & Services - 4.52% | | | |
Cameron International Corp. (a) | 3,000 | | 203,130 |
Helmerich & Payne, Inc. | 2,000 | | 232,220 |
| | | 435,350 |
| | | |
Health Care Equipment & Supplies - 4.38% | | | |
Abbott Labratories | 5,000 | | 204,500 |
Baxter International, Inc. | 3,000 | | 216,900 |
| | | 421,400 |
* See accompanying notes which are an integral part of the financial statements
ANCORA EQUITY FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
| | | |
| Shares | | Value |
IT Services - 2.82% | | | |
International Business Machines Corp. | 1,500 | | $ 271,905 |
| | | 271,905 |
| | | |
Industrial Conglomerates - 3.28% | | | |
General Electric Co | 12,000 | | 315,360 |
| | | 315,360 |
| | | |
Internet Software & Services - 4.99% | | | |
Ebay, Inc. (a) | 5,000 | | 250,300 |
Google, Inc. Cl C (a) | 400 | | 230,112 |
| | | 480,412 |
| | | |
Life Sciences Tools & Services - 3.06% | | | |
Thermo Fisher Scientific, Inc. | 2,500 | | 295,000 |
| | | 295,000 |
| | | |
Machinery - 5.8% | | | |
Deere & Co. | 2,000 | | 181,100 |
Parker Hannifin Corp | 3,000 | | 377,190 |
| | | 558,290 |
| | | |
Media - 2.67% | | | |
Disney Walt Co. | 3,000 | | 257,220 |
| | | 257,220 |
| | | |
Metals & Mining - 6.89% | | | |
Alcoa, Inc. | 20,000 | | 297,800 |
Freeport-McMoRan Copper & Gold, Inc. | 10,000 | | 365,000 |
| | | 662,800 |
| | | |
Oil, Gas & Consumable Fuels - 4.18% | | | |
Apache Corp. | 4,000 | | 402,480 |
| | | 402,480 |
| | | |
Pharmaceuticals - 4.47% | | | |
AbbVie, Inc. | 5,000 | | 282,200 |
Pfizer, Inc. | 5,000 | | 148,400 |
| | | 430,600 |
| | | |
TOTAL COMMON STOCKS (Cost $4,412,835) | | | 7,609,367 |
* See accompanying notes which are an integral part of the financial statements
ANCORA EQUITY FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
| | | |
| Shares | | Value |
| | | |
Investment Companies - 15.47% | | | |
Adams Express Co. | 15,870 | | $ 218,213 |
Boulder Total Return Fund, Inc. | 25,000 | | 641,498 |
Tri Continental Corp. | 30,000 | | 629,400 |
| | | 1,489,110 |
| | | |
TOTAL INVESTMENT COMPANIES (Cost $857,539) | | | 1,489,110 |
| | | |
Money Market Funds - 5.96% | | | |
First American Funds Government Obligation Class Y 0.01% (b) | 573,676 | | 573,676 |
| | | 573,676 |
| | | |
TOTAL MONEY MARKET FUNDS (Cost $573,676) | | | 573,676 |
| | | |
TOTAL INVESTMENTS (Cost $5,844,050) 100.48% | | | 9,672,153 |
| | | |
Liabilities In Excess of Other Assets - (0.48)% | | | (45,993) |
| | | |
TOTAL NET ASSETS - 100.00% | | | $ 9,626,159 |
* See accompanying notes which are an integral part of the financial statements
(a) Non-Income producing.
(b) Variable rate security; the coupon rate shown represents the 7-day yield as of June 30, 2014.
(c) ADR - American Depository Receipt
ANCORA /THELEN SMALL-MID CAP FUND
INVESTMENT OBJECTIVE:
THE ANCORA/THELEN SMALL-MID CAP FUND SEEKS TO OBTAIN CAPITAL APPRECIATION.
| | | | |
| PORTFOLIO MANAGER:
Dan Thelen Managing Director - Small-Mid Cap Equities, Ancora Advisors _________________________
NET ASSETS:
$53.6 MILLION* _________________________
INCEPTION DATE:
JANUARY 2, 2013 _________________________
TICKERS:
CLASS C – AATCX CLASS I – AATIX ________________________
MINIMUM INITIAL INVESTMENT:
CLASS C – $5,000 CLASS I – $5,000
* As of June 30, 2014 |
| TOP HOLDINGS: JUNE 30, 2014 (d) |
| NAME | % OF NET ASSETS |
| Tribune Co. | 5.12% |
| Mallinckrodt PLC | 4.18% |
| Allegion PLC | 3.52% |
| First American Funds Gov't Obligation Class Y | 3.05% |
| New Media Investment Group, Inc. | 3.04% |
| Autobytel, Inc. | 2.96% |
| SpartanNash Co. | 2.88% |
| TFS Financial Corp. | 2.82% |
| Liberty Ventures | 2.81% |
| Sizmek, Inc. | 2.59% |
| | |
SECTOR DIVERSIFICATION: JUNE 30, 2014 (d) |
NAME | % OF NET ASSETS |
Consumer Discretionary | 38.70% |
Financials | 13.27% |
Information Technology | 11.40% |
Industrials | 9.73% |
Consumer Staples | 7.20% |
Health Care | 6.43% |
Materials | 3.43% |
Money Market Fund | 3.06% |
Telecommunication Services | 2.46% |
Energy | 2.40% |
Utilities | 1.94% |
| | | | | |
TOTAL RETURNS: JUNE 30, 2014 (d) |
| ONE MONTH | THREE MONTHS | YTD 2014 | ONE YEAR | SINCE INCEP(a) |
ANCORA/THELEN SMALL-MID CAP FUND - C (b) | 3.40% | 2.78% | 4.59% | 24.16% | 24.71% |
ANCORA/THELEN SMALL-MID CAP FUND - I (b) | 3.51% | 2.97% | 5.00% | 25.22% | 25.80% |
RUSSELL 2500 INDEX(c) | 4.78% | 3.56% | 5.94% | 25.58% | 26.12% |
a)
Inception data reflects the total return since 01/02/13.
b)
Return figures reflect any change in price per share and assume the reinvestment of all distributions.
c)
The Russell 2500 Index, an unmanaged index, consists of 2500 stocks chosen for market size, liquidity, and industry group representation. It is market-value weighted (stock price times number of shares outstanding), with each stock’s weighting in the Index proportionate to its market value and not available for purchase. If you were to purchase the securities that make up this Index, your returns would be lower once fees and/or commissions are deducted.
d)
Data is unaudited.
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 1-866-626-2672
ANCORA /THELEN SMALL-MID CAP FUND
PERFORMANCE ILLUSTRATION (UNAUDITED)
![[ancorancsrs009.gif]](https://capedge.com/proxy/N-CSRS/0001162044-14-001099/ancorancsrs009.gif)
The chart above assumes an initial investment of $1,000,000 made on January 2, 2013 (commencement of Fund operations) and held through June 30, 2014. THE FUND’S RETURN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. The returns shown assume the reinvestment of all distributions and do not reflect deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Investment returns and principal values will fluctuate so that your shares, when redeemed, may be worth more or less than their original purchase price.
Past performance is no guarantee of future results. Performance is unaudited.
ANCORA /THELEN SMALL-MID CAP FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
| | | |
| Shares | | Value |
Common Stocks - 96.65% | | | |
| | | |
Aerospace & Defense - 0.7% | | | |
Exelis, Inc. | 22,040 | | $ 374,239 |
| | | 374,239 |
| | | |
Building Products - 4.75% | | | |
Allegion PLC (a) | 33,310 | | 1,888,011 |
Quanex Building Products Corp. | 36,790 | | 657,437 |
| | | 2,545,448 |
| | | |
Capital Markets - 1.02% | | | |
JMP Group, Inc. | 72,139 | | 546,092 |
| | | 546,092 |
| | | |
Chemicals - 3.42% | | | |
The Scotts Miracle-Gro Co. | 11,410 | | 648,773 |
Rayonier Advanced Materials, Inc. (a) | 8,803 | | 341,129 |
Zep, Inc. | 47,660 | | 841,676 |
| | | 1,831,577 |
| | | |
Commercial Banks - 0.82% | | | |
Farmers National Banc Corp. | 56,757 | | 442,137 |
| | | 442,137 |
| | | |
Commercial Services & Supplies - 0.9% | | | |
Viad Corp. | 20,350 | | 485,144 |
| | | 485,144 |
| | | |
Communications Equipment - 0.71% | | | |
Polycom, Inc. (a) | 30,250 | | 379,033 |
| | | 379,033 |
| | | |
Consumer Finance - 1.94% | | | |
Ally Financial, Inc. (a) | 43,540 | | 1,041,041 |
| | | 1,041,041 |
| | | |
Diversified Consumer Services - 2.55% | | | |
Ascent Capital Group, Inc. (a) | 13,992 | | 923,612 |
Collectors Universe, Inc. | 22,643 | | 443,576 |
| | | 1,367,188 |
| | | |
Diversified Financial Services - 1.44% | | | |
Voya Financial, Inc. | 21,200 | | 770,408 |
| | | 770,408 |
* See accompanying notes which are an integral part of the financial statements
ANCORA /THELEN SMALL-MID CAP FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
| | | |
| Shares | | Value |
Diversified Telecommunications - 2.45% | | | |
Alteva, Inc. | 23,632 | | $ 163,061 |
Cincinnati Bell, Inc. (a) | 292,790 | | 1,150,665 |
| | | 1,313,726 |
| | | |
Electronic Equipment, Instruments - 3.85% | | | |
Daktronics, Inc. | 64,040 | | 763,357 |
Knowles Corp. (a) | 34,110 | | 1,048,541 |
Napco Security Technologies, Inc. (a) | 46,341 | | 251,632 |
| | | 2,063,530 |
| | | |
Food & Staples Retailing - 2.87% | | | |
SpartanNash, Inc. | 73,370 | | 1,541,504 |
| | | 1,541,504 |
| | | |
Food Products - 4.3% | | | |
Post Holdings, Inc. (a) | 26,892 | | 1,369,072 |
Whitewave Foods Co. (a) | 28,949 | | 937,079 |
| | | 2,306,151 |
| | | |
Gas Utilities - 1.94% | | | |
ONE Gas, Inc. (a) | 27,490 | | 1,037,748 |
| | | 1,037,748 |
| | | |
Health Care Equipment & Supplies - 0.58% | | | |
Utah Medical Products, Inc. | 6,004 | | 308,846 |
| | | 308,846 |
| | | |
Health Care Providers & Services - 1.66% | | | |
Corvel Corp. (a) | 19,652 | | 887,877 |
| | | 887,877 |
| | | |
Hotels, Restaurants & Leisure - 2.1% | | | |
CEC Entertainment, Inc. Poison Pill Rights | 4,000 | | - |
Darden Restaurants, Inc. | 10,440 | | 483,059 |
Krispy Kreme Doughnuts, Inc. (a) | 26,150 | | 417,877 |
Tropicana Entertainment, Inc. (a) | 12,850 | | 226,803 |
| | | 1,127,738 |
| | | |
IT Services - 2.15% | | | |
Blackhawk Network Holdings, Inc. (a) | 20,997 | | 592,535 |
Science Applications International Corp. | 12,660 | | 559,066 |
| | | 1,151,601 |
* See accompanying notes which are an integral part of the financial statements
ANCORA /THELEN SMALL-MID CAP FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
| | | |
| Shares | | Value |
Internet & Catalog Retail - 7.55% | | | |
FTD Companies, Inc. (a) | 30,248 | | $ 961,584 |
Liberty Interactive Corp. (a) | 32,640 | | 958,310 |
Liberty Ventures (a) | 20,420 | | 1,506,996 |
TripAdvisor, Inc. (a) | 5,710 | | 620,449 |
| | | 4,047,339 |
| | | |
Internet Software & Services - 4.66% | | | |
Autobytel, Inc. (a) | 120,919 | | 1,585,248 |
Local Corp. (a) | 77,027 | | 159,831 |
United Online, Inc. | 72,627 | | 755,321 |
| | | 2,500,400 |
| | | |
Leisure Equipment & Products - 0.85% | | | |
Nautilus, Inc. (a) | 41,355 | | 458,627 |
| | | 458,627 |
| | | |
Machinery - 2.34% | | | |
Hyster-Yale Materials Handling, Inc. | 4,467 | | 395,508 |
John Bean Technologies Corp. | 6,455 | | 200,040 |
Timken Co. | 9,740 | | 660,762 |
| | | 1,256,310 |
| | | |
Media - 21.52% | | | |
AMC Networks, Inc. (a) | 8,535 | | 524,817 |
Crown Media Holdings, Inc. (a) | 20,347 | | 73,860 |
Dex Media, Inc. (a) | 55,190 | | 614,817 |
John Wiley & Sons, Inc. | 11,962 | | 724,778 |
Lee Enterprises, Inc. (a) | 179,390 | | 798,286 |
Liberty Media Corp. (a) | 3,740 | | 511,183 |
New Media Investment Group, Inc. (a) | 115,510 | | 1,629,846 |
Salem Communications Corp. | 40,116 | | 379,497 |
Sizmek, Inc. (a) | 145,563 | | 1,387,215 |
Starz - Liberty Capital (a) | 36,800 | | 1,096,272 |
Time, Inc. (a) | 43,450 | | 1,052,359 |
Tribune Co. (a) | 32,260 | | 2,743,713 |
| | | 11,536,642 |
| | | |
Multiline Retail - 0.61% | | | |
Tuesday Morning Corp. (a) | 18,461 | | 328,975 |
| | | 328,975 |
| | | |
Oil, Gas & Consumable Fuels - 2.39% | | | |
QEP Resources, Inc. | 37,160 | | 1,282,020 |
| | | 1,282,020 |
* See accompanying notes which are an integral part of the financial statements
ANCORA /THELEN SMALL-MID CAP FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
| | | |
| Shares | | Value |
Pharmaceuticals - 4.18% | | | |
Mallinckrodt PLC (a) | 27,980 | | $ 2,238,960 |
| | | 2,238,960 |
| | | |
Real Estate Investment Trusts - 4.61% | | | |
Ashford Hospitality Trust, Inc. | 47,328 | | 546,165 |
Cyrusone, Inc. | 22,390 | | 557,511 |
Rayonier, Inc. | 26,410 | | 938,876 |
Rouse Properties, Inc. | 25,025 | | 428,178 |
| | | 2,470,729 |
| | | |
Real Estate Management & Development - 0.57% | | | |
Alexander & Baldwin, Inc. | 7,434 | | 308,139 |
| | | 308,139 |
| | | |
Services - 1% | | | |
ADT Corp. | 15,390 | | 537,727 |
| | | 537,727 |
| | | |
Specialty Retail - 0.97% | | | |
CST Brands, Inc. | 15,060 | | 519,570 |
| | | 519,570 |
| | | |
Textiles, Apparel & Luxury Goods - 2.43% | | | |
Cherokee, Inc. | 85,669 | | 1,301,312 |
| | | 1,301,312 |
| | | |
Thrifts & Mortgage Finance - 2.82% | | | |
TFS Financial Corp. (a) | 106,130 | | 1,513,414 |
| | | 1,513,414 |
| | | |
TOTAL COMMON STOCKS (Cost $43,238,217) | | | 51,821,192 |
| | | |
Money Market Funds - 3.05% | | | |
First American Funds Government Obligation Class Y 0.01% (b) | 1,635,349 | | 1,635,349 |
| | | 1,635,349 |
| | | |
TOTAL MONEY MARKET FUNDS (Cost $1,635,349) | | | 1,635,349 |
| | | |
TOTAL INVESTMENTS (Cost $44,873,567) 99.7% | | | 53,456,542 |
| | | |
Other Assets In Excess of Liabilities - 0.3% | | | 159,787 |
| | | |
TOTAL NET ASSETS - 100.00% | | | $ 53,616,328 |
* See accompanying notes which are an integral part of the financial statements
(a) Non-Income producing.
(b) Variable rate security; the coupon rate shown represents the 7-day yield as of June 30, 2014.
ANCORA MICROCAP FUND
INVESTMENT OBJECTIVE:
THE ANCORA MICROCAP FUND SEEKS TO OBTAIN CAPITAL APPRECIATION.
| | | | |
| PORTFOLIO MANAGER:
Denis Amato Managing Director – Microcap Equities, Ancora Advisors _________________________
NET ASSETS:
$12.4 MILLION* _________________________
INCEPTION DATE:
SEPTEMBER 2, 2008 _________________________
TICKERS:
CLASS C – ANCCX CLASS I – ANCIX ________________________
MINIMUM INITIAL INVESTMENT:
CLASS C – $5,000 CLASS I – $5,000
* As of June 30, 2014 |
| TOP HOLDINGS: JUNE 30, 2014 (d) |
| NAME | % OF NET ASSETS |
| Albany Molecular Research, Inc. | 4.04% |
| Hawaiian Holdings Inc Com | 3.47% |
| Lakeland Industries, Inc. | 3.40% |
| First American Funds Gov't Obligation Class Y | 3.34% |
| Medical Action Inds | 3.20% |
| MVC Capital, Inc. | 2.55% |
| Callaway Golf Co. | 2.51% |
| Sanfilippo John B & Son Inc | 2.24% |
| Digirad Corp. | 2.17% |
| RealNetworks Inc. | 2.15% |
| | |
| | |
| | |
SECTOR DIVERSIFICATION: JUNE 30, 2014 (d) |
NAME | % OF NET ASSETS |
Information Technology | 21.98% |
Consumer Discretionary | 19.55% |
Health Care | 16.31% |
Industrials | 14.55% |
Financials | 13.19% |
Energy | 4.69% |
Materials | 3.45% |
Money Market Fund | 3.33% |
Consumer Staples | 2.24% |
Telecommunication Services | 0.71% |
| | | | | |
TOTAL RETURNS: JUNE 30, 2014 (d) |
| YTD 2014 | ONE YEAR | THREE YEARS | FIVE YEARS | SINCE INCEP(a) |
ANCORA MICROCAP FUND - C(b) | 5.04% | 20.85% | 12.17% | 19.42% | 11.09% |
ANCORA MICROCAP FUND - I(b) | 5.58% | 21.96% | 13.00% | 20.00% | 11.63% |
RUSSELL MICROCAP INDEX(c) | 1.55% | 25.01% | 15.94% | 20.03% | 10.11% |
a)
Inception data reflects the annualized return since 09/02/08.
b)
Return figures reflect any change in price per share and assume the reinvestment of all distributions.
c)
The Russell Microcap Index measures the performance of the Microcap segment of the U.S. equity market. It makes up less than 3% of the U.S. equity market. It includes 1,000 of the smallest securities in the small-cap Russell 2000 Index based on a combination of their market cap and current index membership. If you were to purchase the securities that make up this index, your return would be lower once fees and/or commissions are deducted.
d)
Data is unaudited.
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 1-866-626-2672
ANCORA MICROCAP FUND
PERFORMANCE ILLUSTRATION (UNAUDITED)
![[ancorancsrs011.gif]](https://capedge.com/proxy/N-CSRS/0001162044-14-001099/ancorancsrs011.gif)
The chart above assumes an initial investment of $1,000,000 made on September 2, 2008 (commencement of Fund operations) and held through June 30, 2014. THE FUND’S RETURN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. The returns shown assume the reinvestment of all distributions and do not reflect deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Investment returns and principal values will fluctuate so that your shares, when redeemed, may be worth more or less than their original purchase price.
Past performance is no guarantee of future results. Performance is unaudited.
ANCORA MICROCAP FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
| | | |
| Shares | | Value |
Common Stocks - 96.78% | | | |
| | | |
Airlines - 3.47% | | | |
Hawaiian Holdings Inc Com (a) | 31,500 | | $ 431,865 |
| | | 431,865 |
| | | |
Auto Components - 1.08% | | | |
Fuel Systems Solutions, Inc. (a) | 12,000 | | 133,680 |
| | | 133,680 |
| | | |
Capital Markets - 6.38% | | | |
Calamos Asset Management, Inc | 16,000 | | 214,240 |
Harris & Harris Group, Inc. (a) | 82,542 | | 262,484 |
MVC Capital, Inc. | 24,500 | | 317,275 |
| | | 793,999 |
| | | |
Chemicals - 3.45% | | | |
Landec Corp. (a) | 20,000 | | 249,800 |
Penford Corp. (a) | 14,000 | | 179,620 |
| | | 429,420 |
| | | |
Commercial Banks - 2.06% | | | |
Boston Private Financial Holdings, Inc. | 10,000 | | 134,400 |
LNB Bancorp (e) | 10,000 | | 121,800 |
| | | 256,200 |
| | | |
Commercial Services & Supplies - 4.38% | | | |
Courier Corp. | 10,000 | | 149,200 |
Kimball International, Inc. | 15,000 | | 250,800 |
Perma-Fix Environmental Services, Inc. (a) | 31,360 | | 144,256 |
| | | 544,256 |
| | | |
Communications Equipment - 1.06% | | | |
Aviat Networks, Inc. (a) | 102,500 | | 131,200 |
| | | 131,200 |
| | | |
Computers & Peripherals - 3.16% | | | |
Imation Corp. (a) | 60,090 | | 206,710 |
Qumu Corp (a) | 7,847 | | 109,780 |
Silicon Graphics International Corp. (a) | 8,000 | | 76,960 |
| | | 393,449 |
| | | |
Construction & Engineering - 0.41% | | | |
Sterling Construction Co., Inc. (a) | 5,500 | | 51,590 |
| | | 51,590 |
* See accompanying notes which are an integral part of the financial statements
ANCORA MICROCAP FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
| | | |
| Shares | | Value |
Diversified Consumer Services - 0.81% | | | |
Lincoln Educational Services Corp. | 22,500 | | $ 101,025 |
| | | 101,025 |
| | | |
Diversified Telecommunications - 0.71% | | | |
Alaska Communications Systems Group Inc (a) | 48,781 | | 87,806 |
| | | 87,806 |
| | | |
Electronic Equipment, Instruments - 8.24% | | | |
Deswell Industries, Inc. | 22,500 | | 46,350 |
Digital Ally, Inc. (a) | 12,544 | | 39,012 |
Electro Scientific Industries, Inc. | 25,500 | | 173,655 |
Frequency Electronics, Inc. (a) | 13,048 | | 160,621 |
Iteris, Inc (a) | 65,000 | | 110,500 |
Mace Security International, Inc. (a)(d)(f) | 150,000 | | 56,250 |
Maxwell Technologies, Inc. (a) | 12,500 | | 189,125 |
Perceptron, Inc. | 12,000 | | 153,000 |
Planar Systems, Inc. (a) | 23,500 | | 57,575 |
Vicon Industries, Inc. (a) | 15,550 | | 39,186 |
| | | 1,025,274 |
| | | |
Food Products - 2.24% | | | |
Sanfilippo John B & Son Inc | 10,549 | | 279,232 |
| | | 279,232 |
| | | |
Health Care Equipment & Supplies - 9.19% | | | |
Cryolife Inc | 13,047 | | 116,771 |
Digirad Corp. | 75,892 | | 270,176 |
Invacare Corp. | 10,000 | | 183,700 |
Medical Action Inds (a) | 29,002 | | 398,197 |
RTI Biologics Inc Com (a) | 40,000 | | 174,000 |
| | | 1,142,844 |
| | | |
Health Care Providers & Services - 1.15% | | | |
Cross Country Healthcare, Inc. (a) | 22,000 | | 143,440 |
| | | 143,440 |
| | | |
Hotels, Restaurants & Leisure - 1.9% | | | |
Dover Downs Gaming & Entertainment, Inc. (a) | 10,000 | | 13,700 |
Luby's, Inc. (a) | 25,659 | | 150,875 |
Ruby Tuesday, Inc. (a) | 9,500 | | 72,105 |
| | | 236,680 |
* See accompanying notes which are an integral part of the financial statements
ANCORA MICROCAP FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
| | | |
| Shares | | Value |
Household Durables - 6.32% | | | |
Cobra Electronics Corp. (a) | 50,000 | | $ 185,000 |
Emerson Radio Corp. (a) | 50,121 | | 89,215 |
Hooker Furniture Corp. | 5,000 | | 80,700 |
Kid Brands, Inc. (a) | 60,000 | | 390 |
Koss Corp. | 7,500 | | 23,931 |
Natuzzi SpA ADR (a)(c) | 80,804 | | 207,666 |
Stanley Funiture Co. Inc (a) | 49,879 | | 133,676 |
ZAGG, Inc. (a) | 12,000 | | 65,160 |
| | | 785,738 |
| | | |
IT Services - 0.03% | | | |
WPCS International Inc (a) | 7,857 | | 4,007 |
| | | 4,007 |
| | | |
Insurance - 3.69% | | | |
Meadowbrook Insurance Group, Inc. | 13,000 | | 93,470 |
State Auto Financial Corp | 7,500 | | 175,725 |
United Insurance Holdings Corp. | 11,000 | | 189,860 |
| | | 459,055 |
| | | |
Internet Software & Services - 2.15% | | | |
RealNetworks Inc. (a) | 35,000 | | 267,050 |
| | | 267,050 |
| | | |
Leisure Equipment & Products - 4.38% | | | |
Callaway Golf Co. | 37,500 | | 312,000 |
Jakks Pacific, Inc. | 30,000 | | 232,200 |
| | | 544,200 |
| | | |
Life Sciences Tools & Services - 4.04% | | | |
Albany Molecular Research, Inc. (a) | 25,000 | | 503,000 |
| | | 503,000 |
| | | |
Machinery - 2.49% | | | |
FreightCar America, Inc. | 8,000 | | 200,320 |
Lydall, Inc. (a) | 4,000 | | 109,480 |
| | | 309,800 |
| | | |
Marine - 0.47% | | | |
Euroseas, Ltd. | 50,000 | | 58,000 |
| | | 58,000 |
* See accompanying notes which are an integral part of the financial statements
ANCORA MICROCAP FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
| | | |
| Shares | | Value |
Media- 0.18% | | | |
Ballantyne Strong, Inc. (a) | 5,500 | | $ 22,990 |
| | | 22,990 |
| | | |
Oil, Gas & Consumable Fuels - 4.7% | | | |
Goodrich Petroleum Corp. (a) | 6,000 | | 165,600 |
Vaalco Energy, Inc. (a) | 30,000 | | 216,900 |
Warren Resources, Inc. (a) | 32,500 | | 201,500 |
| | | 584,000 |
| | | |
Pharmaceuticals - 1.94% | | | |
Heska Corp. (a) | 22,470 | | 241,553 |
| | | 241,553 |
| | | |
Professional Services - 1.9% | | | |
Heidrick & Struggles Intl Inc. | 9,000 | | 166,500 |
RCM Technologies, Inc. (a) | 10,980 | | 69,833 |
| | | 236,333 |
| | | |
Semiconductors & Semiconductor Equipment - 6.29% | | | |
Amtech Systems, Inc. (a) | 13,360 | | 163,393 |
Axcelis Technologies, Inc. (a) | 110,000 | | 220,000 |
AXT, Inc. (a) | 66,950 | | 143,273 |
BTU International, Inc. (a) | 28,170 | | 92,116 |
Kopin Corp. (a) | 15,000 | | 48,900 |
Leadis Technology, Inc. (a) | 33,812 | | 338 |
Silicon Image, Inc. (a) | 13,500 | | 68,040 |
Trio Tech International (a) | 13,322 | | 46,226 |
| | | 782,286 |
| | | |
Software - 1.08% | | | |
Telenav, Inc. (a) | 23,507 | | 133,755 |
| | | 133,755 |
| | | |
Specialty Retail - 1.51% | | | |
Body Central Corp. (a) | 30,000 | | 26,595 |
Sears Hometown and Outlet Stores, Inc. (a) | 6,000 | | 128,820 |
Wet Seal, Inc. (a) | 35,000 | | 31,850 |
| | | 187,265 |
| | | |
Textiles, Apparel & Luxury Goods - 3.4% | | | |
Lakeland Industries, Inc. (a)(f) | 59,066 | | 422,913 |
| | | 422,913 |
* See accompanying notes which are an integral part of the financial statements
ANCORA MICROCAP FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
| | | |
| Shares | | Value |
Thrifts & Mortgage Finance - 1.07% | | | |
Trustco Bank Corp | 20,000 | | $ 133,600 |
| | | 133,600 |
| | | |
Trading Companies & Distributors - 1.45% | | | |
Lawson Products, Inc. (a) | 11,040 | | 179,842 |
| | | 179,842 |
| | | |
TOTAL COMMON STOCKS (Cost $9,119,453) | | | 12,037,344 |
| | | |
Money Market Funds - 3.34% | | | |
First American Funds Government Obligation Class Y 0.01% (b) | 415,192 | | 415,192 |
| | | 415,192 |
| | | |
TOTAL MONEY MARKET FUNDS (Cost $415,192) | | | 415,192 |
| | | |
TOTAL INVESTMENTS (Cost $9,534,645) 100.12% | | | 12,452,536 |
| | | |
Liabilities In Excess of Other Assets - (0.12)% | | | (14,321) |
| | | |
TOTAL NET ASSETS - 100.00% | | | $ 12,438,215 |
* See accompanying notes which are an integral part of the financial statements
(a) Non-Income producing.
(b) Variable rate security; the coupon rate shown represents the 7-day yield as of June 30, 2014.
(c) ADR - American Depository Receipt
(d) The Ancora Trust Chairman serves on the Board of Directors of this company.
(e) The CEO of Ancora Advisors serves on the Board of Directors for this company.
(f) The Portfolio Manager of this Fund serves on the Board of Directors for this company.
ANCORA SPECIAL OPPORTUNITY FUND
INVESTMENT OBJECTIVE:
THE ANCORA SPECIAL OPPORTUNITY FUND SEEKS TO PROVIDE INVESTORS A HIGH TOTAL RETURN, BY INVESTING IN COMPANIES WITH THE POTENTIAL FOR SUPERIOR RETURNS.
| | | | |
| PORTFOLIO MANAGER:
Richard A. Barone Chairman, Ancora Advisors _________________________
NET ASSETS:
$11.5 MILLION* _________________________
INCEPTION DATE:
JANUARY 5, 2004 _________________________
TICKERS:
CLASS C – ANSCX CLASS I – ANSIX ________________________
MINIMUM INITIAL INVESTMENT:
CLASS C – $5,000 CLASS I – $5,000
* As of June 30, 2014 |
| TOP HOLDINGS: JUNE 30, 2014 (d) |
| NAME | % OF NET ASSETS |
| First American Funds Gov't Obligation Class Y | 14.23% |
| Mace Security International, Inc. | 8.15% |
| Lakeland Industries, Inc. | 6.23% |
| Firsthand Technology Value Fund, Inc. | 4.81% |
| Special Opportunities Fund, Inc. | 4.79% |
| Citigroup, Inc. | 4.10% |
| Safeguard Scientifics, Inc. | 3.98% |
| Leucadia National Corp. | 3.88% |
| Boulder Growth & Income Fund, Inc. | 3.70% |
| BlackRock Enhanced Equity Dividend Trust | 3.65% |
| | |
| | |
SECTOR DIVERSIFICATION: JUNE 30, 2014 (d) |
NAME | % OF NET ASSETS |
Financials | 27.28% |
Investment Companies | 19.10% |
Money Market Fund | 14.41% |
Information Technology | 10.48% |
Consumer Discretionary | 7.03% |
Materials | 6.91% |
Industrials | 4.82% |
Energy | 4.47% |
Health Care | 3.11% |
Consumer Staples | 2.40% |
| | | | | |
TOTAL RETURNS: JUNE 30, 2014 (d) |
| YTD 2014 | ONE YEAR | THREE YEARS | FIVE YEARS | SINCE INCEP(a) |
ANCORA SPECIAL OPP - C(b) | 7.46% | 15.35% | 13.34% | 16.37% | 6.52% |
ANCORA SPECIAL OPP - I(b) | 7.93% | 16.30% | 14.05% | 17.07% | 7.10% |
WILSHIRE 5000 INDEX(c) | 5.88% | 23.63% | 16.45% | 19.25% | 8.14% |
a)
Inception data reflects the annualized return since 01/05/04.
b)
Return figures reflect any change in price per share and assume the reinvestment of all distributions.
c)
The Wilshire 5000 Index measures the performance of all U.S. equity securities with readily available price data. Over 5,000 capitalization weighted security returns are used to adjust the index. It is market-value weighted (stock price times number of shares outstanding), with each stock’s weighting in the Index proportionate to its market value and not available for purchase. If you were to purchase the securities that make up this index, your returns would be lower once fees and/or commissions are deducted.
d)
Data is unaudited.
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 1-866-626-2672
ANCORA SPECIAL OPPORTUNITY FUND
PERFORMANCE ILLUSTRATION (UNAUDITED)
![[ancorancsrs013.gif]](https://capedge.com/proxy/N-CSRS/0001162044-14-001099/ancorancsrs013.gif)
The chart above assumes an initial investment of $1,000,000 made on January 5, 2004 (commencement of Fund operations) and held through June 30, 2014. THE FUND’S RETURN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. The returns shown assume the reinvestment of all distributions and do not reflect deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Investment returns and principal values will fluctuate so that your shares, when redeemed, may be worth more or less than their original purchase price.
Past performance is no guarantee of future results. Performance is unaudited.
ANCORA SPECIAL OPPORTUNITY FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
| | | |
| Shares | | Value |
Common Stocks - 60.86% | | | |
| | | |
Capital Markets - 14.16% | | | |
Ares Capital Corp. | 15,000 | | $ 267,900 |
Calamos Asset Management, Inc | 10,000 | | 133,900 |
Prospect Capital Corp. | 20,000 | | 212,500 |
Safeguard Scientifics, Inc. (a) | 22,000 | | 457,380 |
THL Credit, Inc. | 15,000 | | 210,000 |
| 35,000 | | 346,500 |
| | | 1,628,180 |
| | | |
Communications Equipment- 1.05% | | | |
PCTEL, Inc. | 15,000 | | 121,350 |
| | | 121,350 |
| | | |
Construction Materials- 1.69% | | | |
Continental Materials Corp. (a) | 12,150 | | 194,036 |
| | | 194,036 |
| | | |
| | | |
Diversified Financial Services - 7.97% | | | |
Citigroup, Inc. | 10,000 | | 471,000 |
Leucadia National Corp. | 17,000 | | 445,740 |
| | | 916,740 |
| | | |
Electrical Equipment - 4.76% | | | |
Active Power, Inc. (a) | 20,000 | | 55,200 |
Capstone Turbine Corp. (a) | 100,000 | | 151,000 |
Generac Holdings, Inc. (a) | 3,000 | | 146,220 |
PowerSecure International, Inc. (a) | 20,000 | | 194,800 |
| | | 547,220 |
| | | |
Electronic Equipment, Instruments - 8.15% | | | |
Mace Security International, Inc. (a)(d)(e) | 2,500,000 | | 937,500 |
| | | 937,500 |
| | | |
Energy Equipment & Services - 2% | | | |
Weatherford International Ltd. (a) | 10,000 | | 230,000 |
| | | 230,000 |
| | | |
Health Care Equipment & Supplies - 1.33% | | | |
Invacare Corp. | 7,000 | | 128,590 |
Zynex, Inc. (a) | 82,000 | | 23,780 |
| | | 152,370 |
* See accompanying notes which are an integral part of the financial statements
ANCORA SPECIAL OPPORTUNITY FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
| | | |
| Shares | | Value |
Household Durables - 0.71% | | | |
iRobot, Corp. (a) | 1,000 | | $ 40,950 |
Natuzzi SpA ADR (a)(c) | 16,000 | | 41,120 |
| | | 82,070 |
| | | |
Life Sciences Tools & Services - 1.75% | | | |
Albany Molecular Research, Inc. (a) | 10,000 | | 201,200 |
| | | 201,200 |
| | | |
Metals & Mining - 5.14% | | | |
Allegheny Technologies, Inc. | 5,000 | | 225,500 |
Cliffs Natural Resources, Inc. | 12,000 | | 180,600 |
Richmont Mines, Inc. (a) | 135,000 | | 184,950 |
| | | 591,050 |
Miscellaneous - 0% | | | |
Contra Softbrands, Inc. (a) | 40,000 | | 0 |
| | | 0 |
| | | |
Oil, Gas & Consumable Fuels - 2.41% | | | |
StealthGas, Inc. (a) | 25,000.0 | | 277,500 |
| | | 277,500 |
| | | |
Personal Products - 2.37% | | | |
Stephan Co. (a)(d) | 160,000 | | 272,000 |
| | | 272,000 |
| | | |
Software - 1.14% | | | |
Nuance Communications, Inc. (a) | 7,000 | | 131,390 |
| | | 131,390 |
| | | |
Textiles, Apparel & Luxury Goods - 6.23% | | | |
Lakeland Industries, Inc. (a)(e) | 100,000 | | 716,000 |
| | | 716,000 |
| | | |
| | | |
TOTAL COMMON STOCKS (Cost $5,402,256) | | | 6,998,606 |
| | | |
Direct Trust Certificates- 2.22% | | | |
Saratoga Investment Corp 7.50% | 10,000 | | 255,000 |
| | | 255,000 |
| | | |
TOTAL DIRECT TRUST CERTIFICATES (Cost $252,281) | | | 255,000 |
* See accompanying notes which are an integral part of the financial statements
ANCORA SPECIAL OPPORTUNITY FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
| | | |
| Shares | | Value |
Investment Companies - 21.45% | | | |
BlackRock Enhanced Equity Dividend Trust | 50,000 | | $ 419,500 |
Boulder Growth & Income Fund, Inc. | 50,000 | | 426,000 |
Firsthand Technology Value Fund, Inc. | 26,000 | | 552,500 |
Gabelli Global Deal Fund | 20,000 | | 217,200 |
Neuberger Berman Real Estate Secs Income Fund | 60,000 | | 300,000 |
Special Opportunities Fund, Inc. | 33,000 | | 551,100 |
| | | 2,466,300 |
| | | |
TOTAL INVESTMENT COMPANIES (Cost $2,108,918) | | | 2,466,300 |
| | | |
Money Market Funds - 14.23% | | | |
First American Funds Government Obligation Class Y 0.01% (b) | 1,636,032 | | 1,636,032 |
| | | 1,636,032 |
| | | |
TOTAL MONEY MARKET FUNDS (Cost $1,636,032) | | | 1,636,032 |
| | | |
TOTAL INVESTMENTS (Cost $9,399,488) 98.76% | | | 11,355,938 |
| | | |
Other Assets In Excess of Liabilities - 1.24% | | | 142,481 |
| | | |
TOTAL NET ASSETS - 100.00% | | | $ 11,498,419 |
* See accompanying notes which are an integral part of the financial statements
(a) Non-Income producing.
(b) Variable rate security; the coupon rate shown represents the 7-day yield as of June 30, 2014.
(c) ADR - American Depository Receipt
(d) The Ancora Trust Chairman and Portfolio Manager serves on the Board of Directors of this company.
(e) The Portfolio Manager of the MicroCap Fund serves on the Board of Directors for this company.
FINANCIAL REVIEW
STATEMENTS OF ASSETS & LIABILITIES – As of June 30, 2014 (UNAUDITED)
| | | | | |
| Ancora Income Fund | Ancora Equity Fund | Ancora/Thelen Small-Mid Cap Fund | Ancora MicroCap Fund | Ancora Special Opportunity Fund |
Assets | | | | | |
Investments in securities: | | | | | |
At Cost | $24,857,142 | $5,844,050 | $44,873,567 | $ 9,072,213 | $ 7,747,248 |
At Fair Value | $25,533,056 | $9,672,153 | $53,456,542 | $11,851,574 | $ 9,430,438 |
| | | | | |
Investments in Affiliated Securities: | | | | | |
At Cost | $ - | $ - | $ - | $ 462,432 | $ 1,652,240 |
At Fair Value | $ - | $ - | $ - | $ 600,962 | $ 1,925,500 |
| | | | | |
Cash | - | - | - | 500 | - |
Dividends and interest receivable | 106,679 | 8,172 | 23,481 | 3,291 | 8,770 |
Receivable for investments sold | 316,857 | 622 | 1,015,724 | - | 213,247 |
Shareholder subscription receivable | 1,813 | 215 | 112,215 | 3,365 | 49 |
Prepaid expenses | 3,455 | 2,300 | 9,826 | 2,649 | 1,956 |
Total assets | 25,961,860 | 9,683,462 | 54,617,788 | 12,462,341 | 11,579,960 |
| | | | | |
Liabilities | | | | | |
Payable for investments purchased | 262,728 | - | 937,515 | - | 51,824 |
Shareholder redemptions payable | - | 29,600 | 608 | - | - |
Payable to advisor | 17,611 | 7,805 | 42,132 | 6,543 | 9,268 |
12b-1 fees payable | 5,339 | 5,166 | 1,711 | 2,582 | 5,516 |
Administration fees payable | 2,091 | 781 | 4,213 | 987 | 927 |
Trustee fees payable | 153 | 125 | 515 | 118 | 100 |
Accrued expenses | 15,305 | 13,826 | 14,766 | 13,896 | 13,906 |
Total liabilities | 303,227 | 57,303 | 1,001,460 | 24,126 | 81,541 |
| | | | | |
| | | | | |
Net Assets: | $25,658,633 | $9,626,159 | $53,616,328 | $12,438,215 | $11,498,419 |
(unlimited number of shares authorized, no par value) | | | | | |
| | | | | |
Net Assets consist of: | | | | | |
Paid in capital | 25,635,862 | 6,040,518 | 42,642,663 | 8,845,611 | 8,551,792 |
Accumulated undistributed net investment gain (loss) | (612,847) | (39,275) | 373,533 | (54,416) | (86,472) |
Accumulated net realized gain/(loss) on: | | | | | |
Investment securities | (40,296) | (203,187) | 2,017,157 | 729,129 | 1,076,649 |
Net unrealized appreciation on: | | | | | |
Investment securities | 675,914 | 3,828,103 | 8,582,975 | 2,917,891 | 1,956,450 |
| | | | | |
Net Assets | $25,658,633 | $9,626,159 | $53,616,328 | $12,438,215 | $11,498,419 |
* See accompanying notes which are an integral part of the financial statements
FINANCIAL REVIEW
STATEMENTS OF ASSETS & LIABILITIES – As of June 30, 2014 (UNAUDITED) (CONTINUED)
| | | | | |
| Ancora Income Fund | Ancora Equity Fund | Ancora/Thelen Small-Mid Cap Fund | Ancora MicroCap Fund | Ancora Special Opportunity Fund |
Class C: | | | | | |
| | | | | |
Net assets applicable to Class C shares | $13,689,619 | $7,325,239 | $ 1,260,890 | $ 846,213 | $ 7,713,209 |
| | | | | |
Shares outstanding (unlimited number of shares authorized, no par value) | 1,592,900 | 495,028 | 92,242 | 59,748 | 1,070,732 |
| | | | | |
Net asset value, offering price, and redemption price per share | $ 8.59 | $ 14.80 | $ 13.67 | $ 14.16 | $ 7.20 |
| | | | | |
Minimum Redemption Price Per Share (a) (NAV * 98%) | $ 8.42 | $ 14.50 | $ 13.40 | $ 13.88 | $ 7.06 |
| | | | | |
| | | | | |
Class I: | | | | | |
| | | | | |
Net assets applicable to Class I shares | $11,969,014 | $2,300,920 | $52,355,438 | $11,592,002 | $ 3,785,210 |
| | | | | |
Shares outstanding (unlimited number of shares authorized, no par value) | 1,384,502 | 148,429 | 3,781,424 | 784,726 | 496,856 |
| | | | | |
Net asset value, offering price, and redemption price per share | $ 8.64 | $ 15.50 | $ 13.85 | $ 14.77 | $ 7.62 |
| | | | | |
Minimum Redemption Price Per Share (a) (NAV * 98%) | $ 8.47 | $ 15.19 | $ 13.57 | $ 14.47 | $ 7.47 |
* See accompanying notes which are an integral part of the financial statements
(a)The Funds will impose a 2.00% redemption fee on shares redeemed within 90 days of purchase.
FINANCIAL REVIEW
STATEMENTS OF OPERATIONS – For the six months ended June 30, 2014 (UNAUDITED)
| | | | | |
| Ancora Income Fund | Ancora Equity Fund | Ancora/Thelen Small-Mid Cap Fund (a) | Ancora MicroCap Fund | Ancora Special Opportunity Fund |
Investment Income | | | | | |
Dividend income | $ 484,365 | $ 75,684 | $ 700,801 | $ 44,748 | $ 38,189 |
Dividend income from Affiliates | - | - | - | 200 | - |
Interest income | 58 | 5 | 36 | 19 | 53 |
Total Income | 484,423 | 75,689 | 700,837 | 44,967 | 38,242 |
| | | | | |
Expenses | | | | | |
Investment advisor fee | 121,839 | 46,886 | 238,850 | 59,848 | 53,766 |
12b-1 fees | | | | | |
Class C | 32,965 | 27,031 | 4,304 | 3,013 | 27,089 |
Fund accounting expenses | 15,289 | 12,515 | 17,133 | 13,741 | 13,739 |
Transfer agent expenses | 5,341 | 4,107 | 6,133 | 4,649 | 4,651 |
Legal expenses | 6,730 | 6,352 | 6,952 | 6,360 | 6,362 |
Administration expenses | 12,184 | 4,688 | 23,885 | 5,985 | 5,377 |
Insurance expenses | 1,502 | 870 | 2,167 | 921 | 889 |
Custodian expenses | 4,289 | 1,723 | 4,120 | 1,791 | 2,462 |
Auditing expenses | 6,368 | 6,366 | 5,630 | 6,330 | 6,369 |
Printing expenses | 467 | 416 | 746 | 706 | 436 |
Trustees expenses | 1,853 | 876 | 3,732 | 1,093 | 1,125 |
Miscellaneous expenses | 1,652 | 1,903 | 6,404 | 1,836 | 1,508 |
Registration expenses | 1,614 | 1,231 | 7,248 | 1,589 | 941 |
Total Expenses | 212,093 | 114,964 | 327,304 | 107,862 | 124,714 |
Waived Fees | (10,510) | - | - | (8,479) | - |
Net Operating Expenses | 201,583 | 114,964 | 327,304 | 99,383 | 124,714 |
| | | | | |
Net Investment Income (Loss) | 282,840 | (39,275) | 373,533 | (54,416) | (86,472) |
| | | | | |
| | | | | |
Realized & Unrealized Gains (Loss) | | | | | |
Net realized gain on investment securities | 232,129 | 507,444 | 1,974,893 | 569,652 | 810,780 |
Net realized gain (loss) on affiliated investment securities | - | - | - | - | - |
Capital gain distributions from investment companies | 262,052 | 20,582 | - | - | 100,776 |
Change in unrealized appreciation (depreciation) on investment securities | 1,523,446 | 76,499 | 140,659 | 149,225 | (23,756) |
Net realized and unrealized gain on investment securities | 2,017,627 | 604,525 | 2,115,552 | 718,877 | 887,800 |
Net increase in net assets resulting from operations | $2,300,467 | $565,250 | $2,489,085 | $ 664,461 | $ 801,328 |
* See accompanying notes which are an integral part of the financial statements
FINANCIAL REVIEW
STATEMENTS OF CHANGES IN NET ASSETS
| | | |
| Ancora Income Fund |
| | | |
| (Unaudited) Six Months Ended June 30, 2014 | | Year Ended December 31, 2013 |
| |
| |
Increase (Decrease) in Net Assets from Operations | | | |
Net investment income | $ 282,840 | | $ 789,371 |
Net realized gain on investment securities | 232,129 | | 138,150 |
Net realized gain on affiliated investment securities | - | | - |
Capital gain distributions from investment companies | 262,052 | | 32,123 |
Change in net unrealized appreciation (depreciation) | 1,523,446 | | (1,754,833) |
Net increase (decrease) in net assets resulting from operations | 2,300,467 | | (795,189) |
| | | |
Distributions | | | |
From net investment income, Class C | (471,808) | | (542,852) |
From net investment income, Class I | (423,879) | | (431,256) |
From short-term capital gains, Class C | - | | - |
From short-term capital gains, Class I | - | | - |
From long-term capital gains, Class C | - | | - |
From long-term capital gains, Class I | - | | - |
From return of capital, Class C | - | | (400,955) |
From return of capital, Class I | - | | (318,530) |
Total distributions | (895,687) | | (1,693,593) |
| | | |
Capital Share Transactions - Class C | | | |
Proceeds from sale of shares | 865,480 | | 1,774,545 |
Shares issued in reinvestment of dividends | 153,453 | | 324,695 |
Shares redeemed | (693,086) | | (2,375,404) |
| 325,847 | | (276,164) |
Capital Share Transactions - Class I | | | |
Proceeds from sale of shares | 1,757,269 | | 3,330,187 |
Shares issued in reinvestment of dividends | 302,542 | | 583,729 |
Shares redeemed | (414,575) | | (2,327,456) |
| 1,645,236 | | 1,586,460 |
Net increase in net assets resulting | | | |
from capital share transactions | 1,971,083 | | 1,310,296 |
| | | |
Total increase (decrease) in net assets | 3,375,863 | | (1,178,486) |
| | | |
Net Assets | | | |
Beginning of period | $ 22,282,770 | | $ 23,461,256 |
End of period | $ 25,658,633 | | $ 22,282,770 |
Accumulated undistributed net investment income (loss) | $ (612,847) | | $ - |
| | | |
Capital Share Transactions - C Shares | | | |
Shares sold | 97,957 | | 199,901 |
Shares issued in reinvestment of distributions | 18,147 | | 38,022 |
Shares repurchased | (81,901) | | (272,513) |
Net increase (decrease) from capital share transactions | 34,203 | | (34,590) |
| | | |
Capital Share Transactions - I Shares | | | |
Shares sold | 204,853 | | 381,191 |
Shares issued in reinvestment of distributions | 35,592 | | 68,132 |
Shares repurchased | (48,572) | | (276,710) |
Net increase from capital share transactions | 191,873 | | 172,613 |
* See accompanying notes which are an integral part of the financial statements
FINANCIAL REVIEW
STATEMENTS OF CHANGES IN NET ASSETS
| | | |
| Ancora Equity Fund |
| | | |
| (Unaudited) | | |
| Six Months Ended | | Year Ended |
| June 30, 2014 | | December 31, 2013 |
Increase (Decrease) in Net Assets from Operations | | | |
Net investment loss | $ (39,275) | | $ (49,230) |
Net realized gain on investment securities | 507,444 | | 882,096 |
Net realized gain on affiliated investment securities | - | | - |
Capital gain distributions from investment companies | 20,582 | | 2,026 |
Change in net unrealized appreciation | 76,499 | | 1,932,558 |
Net increase in net assets resulting from operations | 565,250 | | 2,767,450 |
| | | |
Distributions | | | |
From net investment income, Class C | - | | - |
From net investment income, Class I | - | | - |
From short-term capital gains, Class C | - | | - |
From short-term capital gains, Class I | - | | - |
From long-term capital gains, Class C | - | | - |
From long-term capital gains, Class I | - | | - |
From return of capital, Class C | - | | - |
From return of capital, Class I | - | | - |
Total distributions | - | | - |
| | | |
Capital Share Transactions - Class C | | | |
Proceeds from sale of shares | 172,900 | | 360,131 |
Shares issued in reinvestment of dividends | - | | - |
Shares redeemed | (1,226,691) | | (1,180,525) |
| (1,053,791) | | (820,394) |
Capital Share Transactions - Class I | | | |
Proceeds from sale of shares | 5,667 | | 191,449 |
Shares issued in reinvestment of dividends | - | | - |
Shares redeemed | (35,170) | | (1,197,160) |
| (29,503) | | (1,005,711) |
Net decrease in net assets resulting | | | |
from capital share transactions | (1,083,294) | | (1,826,105) |
| | | |
Total increase (decrease) in net assets | (518,044) | | 941,345 |
| | | |
Net Assets | | | |
Beginning of period | $ 10,144,203 | | $ 9,202,858 |
End of period | $ 9,626,159 | | $ 10,144,203 |
Accumulated undistributed net investment income (loss) | $ (39,275) | | $ - |
| | | |
Capital Share Transactions - C Shares | | | |
Shares sold | 11,794 | | 29,759 |
Shares issued in reinvestment of distributions | - | | - |
Shares repurchased | (89,031) | | (96,197) |
Net decrease from capital share transactions | (77,237) | | (66,438) |
| | | |
Capital Share Transactions - I Shares | | | |
Shares sold | 393 | | 16,320 |
Shares issued in reinvestment of distributions | - | | - |
Shares repurchased | (2,338) | | (89,103) |
Net decrease from capital share transactions | (1,945) | | (72,783) |
* See accompanying notes which are an integral part of the financial statements
FINANCIAL REVIEW
STATEMENTS OF CHANGES IN NET ASSETS
| | | |
| Ancora/Thelen Small-Mid Cap Fund |
| | | |
| (Unaudited) | | |
| Six Months Ended | | Period Ended |
| June 30, 2014 | | December 31, 2013 (a) |
Increase (Decrease) in Net Assets from Operations | | | |
Net investment income (loss) | $ 373,533 | | $ (34,568) |
Net realized gain on investment securities | 1,974,893 | | 777,742 |
Net realized gain on affiliated investment securities | - | | - |
Capital gain distributions from investment companies | - | | - |
Change in net unrealized appreciation | 140,659 | | 8,442,316 |
Net increase in net assets resulting from operations | 2,489,085 | | 9,185,490 |
| | | |
Distributions | | | |
From net investment income, Class C | - | | - |
From net investment income, Class I | - | | - |
From short-term capital gains, Class C | - | | (16,738) |
From short-term capital gains, Class I | - | | (702,745) |
From long-term capital gains, Class C | - | | - |
From long-term capital gains, Class I | - | | - |
From return of capital, Class C | - | | - |
From return of capital, Class I | - | | - |
Total distributions | - | | (719,483) |
| | | |
Capital Share Transactions - Class C | | | |
Proceeds from sale of shares | 175,250 | | 1,051,193 |
Shares issued in reinvestment of dividends | - | | 16,738 |
Shares redeemed | (13,499) | | (231,503) |
| 161,751 | | 836,428 |
Capital Share Transactions - Class I | | | |
Proceeds from sale of shares | 7,728,807 | | 35,779,409 |
Shares issued in reinvestment of dividends | - | | 629,890 |
Shares redeemed | (1,599,848) | | (875,201) |
| 6,128,959 | | 35,534,098 |
Net increase in net assets resulting | | | |
from capital share transactions | 6,290,710 | | 36,370,526 |
| | | |
Total increase in net assets | 8,779,795 | | 44,836,533 |
| | | |
Net Assets | | | |
Beginning of period | $ 44,836,533 | | $ - |
End of period | $ 53,616,328 | | $ 44,836,533 |
Accumulated undistributed net investment income (loss) | $ 373,533 | | $ - |
| | | |
Capital Share Transactions - C Shares | | | |
Shares sold | 12,982 | | 98,633 |
Shares issued in reinvestment of distributions | - | | 1,279 |
Shares repurchased | (1,001) | | (19,651) |
Net increase from capital share transactions | 11,981 | | 80,261 |
| | | |
Capital Share Transactions - I Shares | | | |
Shares sold | 579,476 | | 3,342,373 |
Shares issued in reinvestment of distributions | - | | 47,719 |
Shares repurchased | (117,959) | | (70,185) |
Net increase from capital share transactions | 461,517 | | 3,319,907 |
* See accompanying notes which are an integral part of the financial statements
(a) For period January 2, 2013 (commencement of operations) through December 31, 2013.
FINANCIAL REVIEW
STATEMENTS OF CHANGES IN NET ASSETS
| | | |
| Ancora MicroCap Fund |
| | | |
| (Unaudited) | | |
| Six Months Ended | | Year Ended |
| June 30, 2014 | | December 31, 2013 |
Increase (Decrease) in Net Assets from Operations | | | |
Net investment loss | $ (54,416) | | $ (65,757) |
Net realized gain on investment securities | 569,652 | | 910,387 |
Net realized gain on affiliated investment securities | - | | 40,225 |
Capital gain distributions from investment companies | - | | 7,777 |
Capital gain distributions from affiliated investment securities | - | | - |
Change in net unrealized appreciation | 149,225 | | 2,131,834 |
Net increase in net assets resulting from operations | 664,461 | | 3,024,466 |
| | | |
Distributions | | | |
From net investment income, Class C | - | | - |
From net investment income, Class I | - | | - |
From short-term capital gains, Class C | - | | (6,049) |
From short-term capital gains, Class I | - | | (82,618) |
From long-term capital gains, Class C | - | | (51,790) |
From long-term capital gains, Class I | - | | (707,298) |
From return of capital, Class C | - | | - |
From return of capital, Class I | - | | - |
Total distributions | - | | (847,755) |
| | | |
Capital Share Transactions - Class C | | | |
Proceeds from sale of shares | 38,550 | | 61,575 |
Shares issued in reinvestment of dividends | - | | 57,839 |
Shares redeemed | (21,855) | | (443,056) |
| 16,695 | | (323,642) |
Capital Share Transactions - Class I | | | |
Proceeds from sale of shares | 388,035 | | 3,075,098 |
Shares issued in reinvestment of dividends | - | | 783,624 |
Shares redeemed | (558,434) | | (1,363,252) |
| (170,399) | | 2,495,470 |
Net increase (decrease) in net assets resulting | | | |
from capital share transactions | (153,704) | | 2,171,828 |
| | | |
Total increase in net assets | 510,757 | | 4,348,539 |
| | | |
Net Assets | | | |
Beginning of period | $ 11,927,458 | | $ 7,578,919 |
End of period | $ 12,438,215 | | $ 11,927,458 |
Accumulated undistributed net investment income (loss) | $ (54,416) | | $ - |
| | | |
Capital Share Transactions - C Shares | | | |
Shares sold | 2,683 | | 5,076 |
Shares issued in reinvestment of distributions | - | | 4,330 |
Shares repurchased | (1,627) | | (38,865) |
Net increase (decrease) from capital share transactions | 1,056 | | (29,459) |
| | | |
Capital Share Transactions - I Shares | | | |
Shares sold | 27,177 | | 243,088 |
Shares issued in reinvestment of distributions | - | | 56,498 |
Shares repurchased | (38,414) | | (103,662) |
Net increase (decrease) from capital share transactions | (11,237) | | 195,924 |
* See accompanying notes which are an integral part of the financial statements
FINANCIAL REVIEW
STATEMENTS OF CHANGES IN NET ASSETS
| | | |
| Ancora Special Opportunity Fund |
| | | |
| (Unaudited) | | |
| Six Months Ended | | Year Ended |
| June 30, 2014 | | December 31, 2013 |
Increase (Decrease) in Net Assets from Operations | | | |
Net investment loss | $ (86,472) | | $ (120,824) |
Net realized gain on investment securities | 810,780 | | 1,057,721 |
Net realized gain on affiliated investment securities | - | | 219,851 |
Capital gain distributions from investment companies | 100,776 | | 49,044 |
Capital gain distributions from affiliated investment securities | - | | - |
Change in net unrealized appreciation (depreciation) | (23,756) | | 1,207,438 |
Net increase in net assets resulting from operations | 801,328 | | 2,413,230 |
| | | |
Distributions | | | |
From net investment income, Class C | - | | - |
From net investment income, Class I | - | | - |
From short-term capital gains, Class C | - | | - |
From short-term capital gains, Class I | - | | - |
From long-term capital gains, Class C | - | | (83,740) |
From long-term capital gains, Class I | - | | (39,769) |
From return of capital, Class C | - | | - |
From return of capital, Class I | - | | - |
Total distributions | - | | (123,509) |
| | | |
Capital Share Transactions - Class C | | | |
Proceeds from sale of shares | 710,594 | | 437,486 |
Shares issued in reinvestment of dividends | - | | 11,126 |
Shares redeemed | (308,820) | | (606,448) |
| 401,774 | | (157,836) |
Capital Share Transactions - Class I | | | |
Proceeds from sale of shares | 133,280 | | 458,463 |
Shares issued in reinvestment of dividends | - | | 6,112 |
Shares redeemed | (13,488) | | (872,384) |
| 119,792 | | (407,809) |
Net increase (decrease) in net assets resulting | | | |
from capital share transactions | 521,566 | | (565,645) |
| | | |
Total increase in net assets | 1,322,894 | | 1,724,076 |
| | | |
Net Assets | | | |
Beginning of period | $ 10,175,525 | | $ 8,451,449 |
End of period | $ 11,498,419 | | $ 10,175,525 |
Accumulated undistributed net investment income (loss) | $ (86,472) | | $ - |
| | | |
Capital Share Transactions - C Shares | | | |
Shares sold | 102,993 | | 69,827 |
Shares issued in reinvestment of distributions | - | | 1,676 |
Shares repurchased | (44,581) | | (105,095) |
Net increase (decrease) from capital share transactions | 58,412 | | (33,592) |
| | | |
Capital Share Transactions - I Shares | | | |
Shares sold | 18,291 | | 71,249 |
Shares issued in reinvestment of distributions | - | | 874 |
Shares repurchased | (1,806) | | (143,006) |
Net increase (decrease) from capital share transactions | 16,485 | | (70,883) |
* See accompanying notes which are an integral part of the financial statements
FINANCIAL REVIEW
FINANCIAL HIGHLIGHTS FOR A FUND SHARE OUTSTANDING – throughout the period
| | | | | | |
Ancora Income Fund | |
| (Unaudited) | | | | | |
| Six Months Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended |
CLASS C SHARES | 6/30/2014 | 12/31/2013 | 12/31/2012 | 12/31/2011 | 12/31/2010 | 12/31/2009 |
Selected Per Share Data | | | | | | |
Net asset value, beginning of period | $ 8.08 | $ 8.98 | $ 8.97 | $ 8.93 | $ 8.62 | $ 7.33 |
| | | | | | |
Income from investment operations | | | | | | |
Net investment income (a) | 0.08 | 0.26 | 0.31 | 0.33 | 0.38 | 0.44 |
Net realized and unrealized gain (loss) | 0.73 | (0.56) | 0.30 | 0.31 | 0.53 | 1.45 |
Total from investment operations | 0.81 | (0.30) | 0.61 | 0.64 | 0.91 | 1.89 |
| | | | | | |
Less Distributions to shareholders: | | | | | | |
From net investment income | (0.30) | (0.35) | (0.60) | (0.55) | (0.38) | (0.45) |
From net realized gain | - | - | - | - | - | - |
From return of capital | - | (0.25) | - | (0.05) | (0.22) | (0.15) |
Total distributions | (0.30) | (0.60) | (0.60) | (0.60) | (0.60) | (0.60) |
| | | | | | |
Net asset value, end of period | $ 8.59 | $ 8.08 | $ 8.98 | $ 8.97 | $ 8.93 | $ 8.62 |
| | | | | | |
Total Return (b) | 10.14% (f) | (3.51)% | 6.84% | 7.40% | 10.86% | 27.11% |
| | | | | | |
Ratios and Supplemental Data | | | | | | |
Net assets, end of period (000) | $ 13,690 | $ 12,601 | $ 14,300 | $ 13,131 | $ 12,485 | $ 11,278 |
Ratio of expenses to average net assets (c) | 1.97% (e) | 1.95% | 2.00% | 1.97% | 1.97% | 1.99% |
Ratio of expenses to average net assets | | | | | | |
before waiver & reimbursement (c) | 1.97% (e) | 1.95% | 2.01% | 1.98% | 1.98% | 2.06% |
Ratio of net investment income (loss) to | | | | | | |
average net assets (c) (d) | 2.01% (e) | 3.00% | 3.42% | 3.65% | 4.34% | 5.75% |
Ratio of net investment income (loss) to | | | | | | |
average net assets before waiver & reimbursement (c) (d) | 2.01% (e) | 3.00% | 3.41% | 3.65% | 4.34% | 5.67% |
Portfolio turnover rate | 56.86% (f) | 122.34% | 116.25% | 57.56% | 53.48% | 50.75% |
* See accompanying notes which are an integral part of the financial statements
(a) Net investment income (loss) per share is based on average shares outstanding.
(b) Total return in the above table represents the rate that the investor would have earned or lost on an investment in the Fund, assuming reinvestment of dividends.
(c) These ratios exclude the impact of expenses of the underlying security holdings as represented in the schedule of investments.
(d) Recognition of net investment income (loss) by the Fund is affected by the timing of the declaration of dividends by the underlying investment companies in which the Fund invests.
(e) Annualized
(f) Not Annualized
FINANCIAL REVIEW
FINANCIAL HIGHLIGHTS FOR A FUND SHARE OUTSTANDING – throughout the period
| | | | | | |
Ancora Equity Fund | |
| (Unaudited) | | | | | |
| Six Months Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended |
CLASS C SHARES | 6/30/2014 | 12/31/2013 | 12/31/2012 | 12/31/2011 | 12/31/2010 | 12/31/2009 |
Selected Per Share Data | | | | | | |
Net asset value, beginning of period | $ 13.91 | $ 10.58 | $ 9.35 | $ 10.16 | $ 9.11 | $ 7.14 |
| | | | | | |
Income from investment operations | | | | | | |
Net investment income (loss) (a) | (0.07) | (0.09) | (0.09) | (0.07) | (0.08) | (0.02) |
Net realized and unrealized gain (loss) | 0.96 | 3.42 | 1.32 | (0.74) | 1.13 | 2.00 |
Total from investment operations | 0.89 | 3.33 | 1.23 | (0.81) | 1.05 | 1.98 |
| | | | | | |
Less Distributions to shareholders: | | | | | | |
From net investment income | - | - | - | - | - | (0.01) |
From net realized gain | - | - | - | - | - | - |
From return of capital | - | - | - | - | - | - |
Total distributions | - | - | - | - | - | (0.01) |
| | | | | | |
Net asset value, end of period | $ 14.80 | $ 13.91 | $ 10.58 | $ 9.35 | $ 10.16 | $ 9.11 |
| | | | | | |
Total Return (b) | 6.40% (f) | 31.47% | 13.16% | (7.97)% | 11.53% | 27.74% |
| | | | | | |
Ratios and Supplemental Data | | | | | | |
Net assets, end of period (000) | $ 7,325 | $ 7,961 | $ 6,757 | $ 6,384 | $ 7,820 | $ 6,837 |
Ratio of expenses to average net assets (c) | 2.63% (e) | 2.54% | 2.60% | 2.54% | 2.53% | 2.61% |
Ratio of expenses to average net assets | | | | | | |
before waiver & reimbursement (c) | 2.63% (e) | 2.54% | 2.60% | 2.54% | 2.53% | 2.61% |
Ratio of net investment income (loss) to | | | | | | |
average net assets (c) (d) | (1.01)% (e) | (0.70)% | (0.92)% | (0.66)% | (0.86)% | (0.29)% |
Ratio of net investment income (loss) to | | | | | | |
average net assets before waiver & reimbursement (c) (d) | (1.01)% (e) | (0.70)% | (0.92)% | (0.66)% | (0.86)% | (0.29)% |
Portfolio turnover rate | 9.32% (f) | 28.54% | 38.66% | 64.54% | 45.73% | 56.25% |
* See accompanying notes which are an integral part of the financial statements
(a) Net investment income (loss) per share is based on average shares outstanding.
(b) Total return in the above table represents the rate that the investor would have earned or lost on an investment in the Fund, assuming reinvestment of dividends.
(c) These ratios exclude the impact of expenses of the underlying security holdings as represented in the schedule of investments.
(d) Recognition of net investment income (loss) by the Fund is affected by the timing of the declaration of dividends by the underlying investment companies in which the Fund invests.
(e) Annualized
(f) Not Annualized
FINANCIAL REVIEW
FINANCIAL HIGHLIGHTS FOR A FUND SHARE OUTSTANDING – throughout the period
| | | |
Ancora/Thelen Small-Mid Cap Fund |
| (Unaudited) | | |
| Six Months Ended | | Period Ended |
CLASS C SHARES | 6/30/2014 | | 12/31/2013 (g) |
Selected Per Share Data | | | |
Net asset value, beginning of period | $ 13.07 | | $ 10.00 |
| | | |
Income from investment operations | | | |
Net investment income (loss) (a) | 0.05 | | (0.11) |
Net realized and unrealized gain | 0.55 | | 3.39 |
Total from investment operations | 0.60 | | 3.28 |
| | | |
Less Distributions to shareholders: | | | |
From net investment income | - | | - |
From net realized gain | - | | (0.21) |
From return of capital | - | | - |
Total distributions | - | | (0.21) |
| | | |
Net asset value, end of period | $ 13.67 | | $ 13.07 |
| | | |
Total Return (b) | 4.59% (f) | | 32.84% (f) |
| | | |
Ratios and Supplemental Data | | | |
Net assets, end of period (000) | $ 1,261 | | $ 1,049 |
Ratio of expenses to average net assets (c) | 2.10% (e) | | 2.18% (e) |
Ratio of expenses to average net assets | | | |
before waiver & reimbursement (c) | 2.10% (e) | | 2.18% (e) |
Ratio of net investment income (loss) to | | | |
average net assets (c) (d) | 0.83% (e) | | (0.94)% (e) |
Ratio of net investment income (loss) to | | | |
average net assets before waiver & reimbursement (c) (d) | 0.83% (e) | | (0.94)% (e) |
Portfolio turnover rate | 36.13% (f) | | 46.72% (f) |
* See accompanying notes which are an integral part of the financial statements
(a) Net investment income (loss) per share is based on average shares outstanding.
(b) Total return in the above table represents the rate that the investor would have earned or lost on an investment in the Fund, assuming reinvestment of dividends.
(c) These ratios exclude the impact of expenses of the underlying security holdings as represented in the schedule of investments.
(d) Recognition of net investment income (loss) by the Fund is affected by the timing of the declaration of dividends by the underlying investment companies in which the Fund invests.
(e) Annualized
(f) Not Annualized
(g) For period January 2, 2013 (commencement of operations) through December 31, 2013.
FINANCIAL REVIEW
FINANCIAL HIGHLIGHTS FOR A FUND SHARE OUTSTANDING – throughout the period
| | | | | | |
Ancora MicroCap Fund | |
| (Unaudited) | | | | | |
| Six Months Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended |
CLASS C SHARES | 6/30/2014 | 12/31/2013 | 12/31/2012 | 12/31/2011 | 12/31/2010 | 12/31/2009 |
Selected Per Share Data | | | | | | |
Net asset value, beginning of period | $ 13.48 | $ 10.78 | $ 10.05 | $ 12.68 | $ 9.74 | $ 6.06 |
| | | | | | |
Income from investment operations | | | | | | |
Net investment loss (a) | (0.12) | (0.20) | (0.17) | (0.27) | (0.27) | (0.24) |
Net realized and unrealized gain (loss) | 0.80 | 3.96 | 1.60 | (1.44) | 3.70 | 3.92 |
Total from investment operations | 0.68 | 3.76 | 1.43 | (1.71) | 3.43 | 3.68 |
| | | | | | |
Less Distributions to shareholders: | | | | | | |
From net investment income | - | - | - | - | - | - |
From net realized gain | - | (1.06) | (0.70) | (0.92) | (0.49) | - |
Total distributions | - | (1.06) | (0.70) | (0.92) | (0.49) | - |
| | | | | | |
Net asset value, end of period | $ 14.16 | $ 13.48 | $ 10.78 | $ 10.05 | $ 12.68 | $ 9.74 |
| | | | | | |
Total Return (b) | 5.04% (e) | 35.00% | 14.27% | (13.51)% | 35.19% | 60.73% |
| | | | | | |
Ratios and Supplemental Data | | | | | | |
Net assets, end of period (000) | $ 846 | $ 791 | $ 950 | $ 863 | $ 1,115 | $ 1,002 |
Ratio of expenses to average net assets (c) | 2.50% (d) | 2.58% | 2.87% | 2.78% | 3.13% | 3.48% |
Ratio of expenses to average net assets | | | | | | |
before waiver & reimbursement (c) | 2.50% (d) | 2.58% | 2.87% | 2.78% | 3.13% | 3.82% |
Ratio of net investment income (loss) to | | | | | | |
average net assets (c) | (1.75)% (d) | (1.61)% | (1.57)% | (2.22)% | (2.44)% | (3.04)% |
Ratio of net investment income (loss) to | | | | | | |
average net assets before waiver & reimbursement (c) | (1.75)% (d) | (1.61)% | (1.57)% | (2.22)% | (2.44)% | (3.38)% |
Portfolio turnover rate | 8.29% (e) | 23.02% | 27.30% | 11.42% | 36.36% | 44.07% |
* See accompanying notes which are an integral part of the financial statements
(a) Net investment income (loss) per share is based on average shares outstanding.
(b) Total return in the above table represents the rate that the investor would have earned or lost on an investment in the Fund, assuming reinvestment of dividends.
(c) These ratios exclude the impact of expenses of the underlying security holdings as represented in the schedule of investments.
(d) Annualized
(e) Not Annualized
FINANCIAL REVIEW
FINANCIAL HIGHLIGHTS FOR A FUND SHARE OUTSTANDING – throughout the period
| | | | | | |
Ancora Special Opportunity Fund | | |
| (Unaudited) | | | | | |
| Six Months Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended |
CLASS C SHARES | 6/30/2014 | 12/31/2013 | 12/31/2012 | 12/31/2011 | 12/31/2010 | 12/31/2009 |
Selected Per Share Data | | | | | | |
Net asset value, beginning of period | $ 6.70 | $ 5.21 | $ 4.33 | $ 5.04 | $ 4.46 | $ 2.38 |
| | | | | | |
Income from investment operations | | | | | | |
Net investment loss (a) | (0.06) | (0.10) | (0.06) | (0.01) | (0.07) | (0.03) |
Net realized and unrealized gain (loss) | 0.56 | 1.67 | 0.94 | (0.70) | 0.65 | 2.11 |
Total from investment operations | 0.50 | 1.57 | 0.88 | (0.71) | 0.58 | 2.08 |
| | | | | | |
Less Distributions to shareholders: | | | | | | |
From net investment income | - | - | - (b) | - | - | - (b) |
From net realized gain | - | (0.08) | - | - | - | - |
From return of capital | - | - | - | - | - | - |
Total distributions | - | (0.08) | - | - | �� - | - |
| | | | | | |
Net asset value, end of period | $ 7.20 | $ 6.70 | $ 5.21 | $ 4.33 | $ 5.04 | $ 4.46 |
| | | | | | |
Total Return (c) | 7.46% (g) | 30.21% | 20.40% | (14.09)% | 13.00% | 87.47% |
| | | | | | |
Ratios and Supplemental Data | | | | | | |
Net assets, end of period (000) | $ 7,713 | $ 6,784 | $ 5,452 | $ 4,878 | $ 5,615 | $ 5,240 |
Ratio of expenses to average net assets (d) | 2.56% (f) | 2.59% | 2.70% | 2.61% | 2.64% | 2.86% |
Ratio of expenses to average net assets | | | | | | |
before waiver & reimbursement (d) | 2.56% (f) | 2.59% | 2.70% | 2.61% | 2.64% | 2.86% |
Ratio of net investment income (loss) to | | | | | | |
average net assets (d) (e) | (1.85)% (f) | (1.54)% | (1.25)% | (0.10)% | (1.45)% | (0.97)% |
Ratio of net investment income (loss) to | | | | | | |
average net assets before waiver & reimbursement (d) (e) | (1.85)% (f) | (1.54)% | (1.25)% | (0.10)% | (1.45)% | (0.97)% |
Portfolio turnover rate | 61.58% (g) | 113.99% | 124.71% | 99.12% | 97.02% | 148.81% |
* See accompanying notes which are an integral part of the financial statements
(a) Net investment income (loss) per share is based on average shares outstanding.
(b) Amount is less than 0.005
(c) Total return in the above table represents the rate that the investor would have earned or lost on an investment in the Fund, assuming reinvestment of dividends.
(d) These ratios exclude the impact of expenses of the underlying security holdings as represented in the Schedule of Investments.
(e) Recognition of net investment income (loss) by the Fund is affected by the timing of the declaration of dividends by the underlying investment companies in which the Fund invests.
(f) Annualized
(g) Not Annualized
FINANCIAL REVIEW
FINANCIAL HIGHLIGHTS FOR A FUND SHARE OUTSTANDING – throughout the period
| | | | | | |
Ancora Income Fund | |
| (Unaudited) | | | | | |
| Six Months Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended |
CLASS I (Formerly Class D) | 6/30/2014 | 12/31/2013 | 12/31/2012 | 12/31/2011 | 12/31/2010 | 12/31/2009 |
Selected Per Share Data | | | | | | |
Net asset value, beginning of period | $ 8.12 | $ 8.98 | $ 8.98 | $ 8.95 | $ 8.65 | $ 7.36 |
| | | | | | |
Income from investment operations | | | | | | |
Net investment income (loss) (a) | 0.11 | 0.32 | 0.34 | 0.35 | 0.40 | 0.46 |
Net realized and unrealized gain (loss) | 0.73 | (0.55) | 0.29 | 0.31 | 0.52 | 1.46 |
Total from investment operations | 0.84 | (0.23) | 0.63 | 0.66 | 0.92 | 1.92 |
| | | | | | |
Less Distributions to shareholders: | | | | | | |
From net investment income | (0.32) | (0.36) | (0.63) | (0.58) | (0.40) | (0.47) |
From net realized gain | - | - | - | - | - | - |
From return of capital | - | (0.27) | - | (0.05) | (0.22) | (0.16) |
Total distributions | (0.32) | (0.63) | (0.63) | (0.63) | (0.62) | (0.63) |
| | | | | | |
Net asset value, end of period | $ 8.64 | $ 8.12 | $ 8.98 | $ 8.98 | $ 8.95 | $ 8.65 |
| | | | | | |
Total Return (b) | 10.41% (f) | (2.71)% | 7.19% | 7.62% | 11.07% | 27.48% |
| | | | | | |
Ratios and Supplemental Data | | | | | | |
Net assets, end of period (000) | $ 11,969 | $ 9,682 | $ 9,161 | $ 7,249 | $ 6,756 | $ 6,852 |
Ratio of expenses to average net assets (c) | 1.28% (e) | 1.29% | 1.75% | 1.72% | 1.72% | 1.74% |
Ratio of expenses to average net assets | | | | | | |
before waiver & reimbursement (c) | 1.47% (e) | 1.45% | 1.76% | 1.73% | 1.73% | 1.82% |
Ratio of net investment income (loss) to | | | | | | |
average net assets (c) (d) | 2.68% (e) | 3.71% | 3.74% | 3.88% | 4.54% | 5.93% |
Ratio of net investment income (loss) to | | | | | | |
average net assets before waiver & reimbursement (c) (d) | 2.49% (e) | 3.55% | 3.73% | 3.88% | 4.54% | 5.85% |
Portfolio turnover rate | 56.86% (f) | 122.34% | 116.25% | 57.56% | 53.48% | 50.75% |
* See accompanying notes which are an integral part of the financial statements
(a) Net investment income (loss) per share is based on average shares outstanding.
(b) Total return in the above table represents the rate that the investor would have earned or lost on an investment in the Fund, assuming reinvestment of dividends.
(c) These ratios exclude the impact of expenses of the underlying security holdings as represented in the schedule of investments.
(d) Recognition of net investment income (loss) by the Fund is affected by the timing of the declaration of dividends by the underlying investment companies in which the Fund invests.
(e) Annualized
(f) Not Annualized
FINANCIAL REVIEW
FINANCIAL HIGHLIGHTS FOR A FUND SHARE OUTSTANDING – throughout the period
| | | | | | |
Ancora Equity Fund | |
| (Unaudited) | | | | | |
| Six Months Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended |
CLASS I (Formerly Class D) | 6/30/2014 | 12/31/2013 | 12/31/2012 | 12/31/2011 | 12/31/2010 | 12/31/2009 |
Selected Per Share Data | | | | | | |
Net asset value, beginning of period | $ 14.52 | $ 10.96 | $ 9.64 | $ 10.42 | $ 9.30 | $ 7.26 |
| | | | | | |
Income from investment operations | | | | | | |
Net investment income (loss) (a) | (0.02) | 0.01 | (0.04) | (0.02) | (0.03) | 0.02 |
Net realized and unrealized gain (loss) | 1.00 | 3.55 | 1.36 | (0.76) | 1.15 | 2.03 |
Total from investment operations | 0.98 | 3.56 | 1.32 | (0.78) | 1.12 | 2.05 |
| | | | | | |
Less Distributions to shareholders: | | | | | | |
From net investment income | - | - | - | - | - | (0.01) |
From net realized gain | - | - | - | - | - | - |
From return of capital | - | - | - | - | - | - |
Total distributions | - | - | - | - | - | (0.01) |
| | | | | | |
Net asset value, end of period | $ 15.50 | $ 14.52 | $ 10.96 | $ 9.64 | $ 10.42 | $ 9.30 |
| | | | | | |
Total Return (b) | 6.75% (f) | 32.48% | 13.69% | (7.49)% | 12.04% | 28.25% |
| | | | | | |
Ratios and Supplemental Data | | | | | | |
Net assets, end of period (000) | $ 2,301 | $ 2,183 | $ 2,446 | $ 2,493 | $ 2,876 | $ 2,844 |
Ratio of expenses to average net assets (c) | 1.88% (e) | 1.79% | 2.10% | 2.04% | 2.03% | 2.11% |
Ratio of expenses to average net assets | | | | | | |
before waiver & reimbursement (c) | 1.88% (e) | 1.79% | 2.10% | 2.04% | 2.03% | 2.11% |
Ratio of net investment income (loss) to | | | | | | |
average net assets (c) (d) | (0.27)% (e) | 0.09% | (0.43)% | (0.17)% | (0.34)% | 0.23% |
Ratio of net investment income (loss) to | | | | | | |
average net assets before waiver & reimbursement (c) (d) | (0.27)% (e) | 0.09% | (0.43)% | (0.17)% | (0.34)% | 0.23% |
Portfolio turnover rate | 9.32% (f) | 28.54% | 38.66% | 64.54% | 45.73% | 56.25% |
* See accompanying notes which are an integral part of the financial statements
(a) Net investment income (loss) per share is based on average shares outstanding.
(b) Total return in the above table represents the rate that the investor would have earned or lost on an investment in the Fund, assuming reinvestment of dividends.
(c) These ratios exclude the impact of expenses of the underlying security holdings as represented in the schedule of investments.
(d) Recognition of net investment income (loss) by the Fund is affected by the timing of the declaration of dividends by the underlying investment companies in which the Fund invests.
(e) Annualized
(f) Not Annualized
FINANCIAL REVIEW
FINANCIAL HIGHLIGHTS FOR A FUND SHARE OUTSTANDING – throughout the period
| | | |
Ancora/Thelen Small-Mid Cap Fund | | |
| (Unaudited) | | |
| Six Months Ended | | Period Ended |
CLASS I | 6/30/2014 | | 12/31/2013 (g) |
Selected Per Share Data | | | |
Net asset value, beginning of period | $ 13.19 | | $ 10.00 |
| | | |
Income from investment operations | | | |
Net investment income (loss) (a) | 0.10 | | (0.01) |
Net realized and unrealized gain | 0.56 | | 3.41 |
Total from investment operations | 0.66 | | 3.40 |
| | | |
Less Distributions to shareholders: | | | |
From net investment income | - | | - |
From net realized gain | - | | (0.21) |
From return of capital | - | | - |
Total distributions | - | | (0.21) |
| | | |
Net asset value, end of period | $ 13.85 | | $ 13.19 |
| | | |
Total Return (b) | 5.00% (f) | | 34.04% (f) |
| | | |
Ratios and Supplemental Data | | | |
Net assets, end of period (000) | $ 52,355 | | $ 43,787 |
Ratio of expenses to average net assets (c) | 1.35% (e) | | 1.39% (e) |
Ratio of expenses to average net assets | | | |
before waiver & reimbursement (c) | 1.35% (e) | | 1.46% (e) |
Ratio of net investment income (loss) to | | | |
average net assets (c) (d) | 1.58% (e) | | (0.09)% (e) |
Ratio of net investment income (loss) to | | | |
average net assets before waiver & reimbursement (c) (d) | 1.58% (e) | | (0.17)% (e) |
Portfolio turnover rate | 36.13% (f) | | 46.72% (f) |
* See accompanying notes which are an integral part of the financial statements
(a) Net investment income (loss) per share is based on average shares outstanding.
(b) Total return in the above table represents the rate that the investor would have earned or lost on an investment in the Fund, assuming reinvestment of dividends.
(c) These ratios exclude the impact of expenses of the underlying security holdings as represented in the schedule of investments.
(d) Recognition of net investment income (loss) by the Fund is affected by the timing of the declaration of dividends by the underlying investment companies in which the Fund invests.
(e) Annualized
(f) Not Annualized
(g) For period January 2, 2013 (commencement of operations) through December 31, 2013.
FINANCIAL REVIEW
FINANCIAL HIGHLIGHTS FOR A FUND SHARE OUTSTANDING – throughout the period
| | | | | | |
Ancora MicroCap Fund | |
| (Unaudited) | | | | | |
| Six Months Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended |
CLASS I (Formerly Class D) | 6/30/2014 | 12/31/2013 | 12/31/2012 | 12/31/2011 | 12/31/2010 | 12/31/2009 |
Selected Per Share Data | | | | | | |
Net asset value, beginning of period | $ 13.99 | $ 11.05 | $ 10.23 | $ 12.83 | $ 9.80 | $ 6.07 |
| | | | | | |
Income from investment operations | | | | | | |
Net investment loss (a) | (0.06) | (0.08) | (0.12) | (0.21) | (0.22) | (0.20) |
Net realized and unrealized gain (loss) | 0.84 | 4.08 | 1.64 | (1.47) | 3.74 | 3.93 |
Total from investment operations | 0.78 | 4.00 | 1.52 | (1.68) | 3.52 | 3.73 |
| | | | | | |
Less Distributions to shareholders: | | | | | | |
From net investment income | - | - | - | - | - | - |
From net realized gain | - | (1.06) | (0.70) | (0.92) | (0.49) | - |
Total distributions | - | (1.06) | (0.70) | (0.92) | (0.49) | - |
| | | | | | |
Net asset value, end of period | $ 14.77 | $ 13.99 | $ 11.05 | $ 10.23 | $ 12.83 | $ 9.80 |
| | | | | | |
Total Return (b) | 5.58% (e) | 36.32% | 14.89% | (13.13)% | 35.90% | 61.45% |
| | | | | | |
Ratios and Supplemental Data | | | | | | |
Net assets, end of period (000) | $ 11,592 | $ 11,136 | $ 6,629 | $ 5,164 | $ 4,865 | $ 2,762 |
Ratio of expenses to average net assets (c) | 1.60% (d) | 1.60% | 2.37% | 2.28% | 2.61% | 2.98% |
Ratio of expenses to average net assets | | | | | | |
before waiver & reimbursement (c) | 1.75% (d) | 1.83% | 2.37% | 2.28% | 2.61% | 3.32% |
Ratio of net investment income (loss) to | | | | | | |
average net assets (c) | (0.85)% (d) | (0.58)% | (1.03)% | (1.69)% | (1.99)% | (2.52)% |
Ratio of net investment income (loss) to | | | | | | |
average net assets before waiver & reimbursement (c) | (1.00)% (d) | (0.81)% | (1.03)% | (1.69)% | (1.99)% | (2.85)% |
Portfolio turnover rate | 8.29% (e) | 23.02% | 27.30% | 11.42% | 36.36% | 44.07% |
* See accompanying notes which are an integral part of the financial statements
(a) Net investment income (loss) per share is based on average shares outstanding.
(b) Total return in the above table represents the rate that the investor would have earned or lost on an investment in the Fund, assuming reinvestment of dividends.
(c) These ratios exclude the impact of expenses of the underlying security holdings as represented in the Schedule of Investments.
(d) Annualized
(e) Not Annualized
FINANCIAL REVIEW
FINANCIAL HIGHLIGHTS FOR A FUND SHARE OUTSTANDING – throughout the period
| | | | | | |
Ancora Special Opportunity Fund | |
| (Unaudited) | | | | | |
| Six Months Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended |
CLASS I (Formerly Class D) | 6/30/2014 | 12/31/2013 | 12/31/2012 | 12/31/2011 | 12/31/2010 | 12/31/2009 |
Selected Per Share Data | | | | | | |
Net asset value, beginning of period | $ 7.06 | $ 5.44 | $ 4.50 | $ 5.21 | $ 4.58 | $ 2.44 |
| | | | | | |
Income from investment operations | | | | | | |
Net investment income (loss) (a) | (0.04) | (0.05) | (0.04) | 0.02 | (0.05) | (0.02) |
Net realized and unrealized gain (loss) | 0.60 | 1.75 | 0.98 | (0.73) | 0.68 | 2.16 |
Total from investment operations | 0.56 | 1.70 | 0.94 | (0.71) | 0.63 | 2.14 |
| | | | | | |
Less Distributions to shareholders: | | | | | | |
From net investment income | - | - | - (b) | - | - | - (b) |
From net realized gain | - | (0.08) | - | - | - | - |
From return of capital | - | - | - | - | - | - |
Total distributions | - | (0.08) | - | - | - | - |
| | | | | | |
Paid in capital from redemption fees | | | | | | |
| | | | | | |
Net asset value, end of period | $ 7.62 | $ 7.06 | $ 5.44 | $ 4.50 | $ 5.21 | $ 4.58 |
| | | | | | |
Total Return (c) | 7.93% (g) | 31.32% | 20.97% | (13.63)% | 13.76% | 87.78% |
| | | | | | |
Ratios and Supplemental Data | | | | | | |
Net assets, end of period (000) | $ 3,785 | $ 3,392 | $ 2,999 | $ 2,763 | $ 3,644 | $ 3,140 |
Ratio of expenses to average net assets (d) | 1.81% (f) | 1.84% | 2.20% | 2.11% | 2.15% | 2.36% |
Ratio of expenses to average net assets | | | | | | |
before waiver & reimbursement (d) | 1.81% (f) | 1.84% | 2.20% | 2.11% | 2.15% | 2.36% |
Ratio of net investment income (loss) to | | | | | | |
average net assets (d) (e) | (1.11)% (f) | (0.76)% | (0.75)% | 0.34% | (0.96)% | (0.47)% |
Ratio of net investment income (loss) to | | | | | | |
average net assets before waiver & reimbursement (d) (e) | (1.11)% (f) | (0.76)% | (0.75)% | 0.34% | (0.96)% | (0.47)% |
Portfolio turnover rate | 61.58% (g) | 113.99% | 124.71% | 99.12% | 97.02% | 148.81% |
* See accompanying notes which are an integral part of the financial statements
(a) Net investment income (loss) per share is based on average shares outstanding.
(b) Amount is less than 0.005
(c) Total return in the above table represents the rate that the investor would have earned or lost on an investment in the Fund, assuming reinvestment of dividends.
(d) These ratios exclude the impact of expenses of the underlying security holdings as represented in the schedule of investments.
(e) Recognition of net investment income (loss) by the Fund is affected by the timing of the declaration of dividends by the underlying investment companies in which the Fund invests.
(f) Annualized
(g) Not Annualized
FINANCIAL REVIEW
Ancora Trust
Notes to the Financial Statements (UNAUDITED)
June 30, 2014
NOTE 1. ORGANIZATION
Ancora Income Fund (the “Income Fund”), Ancora Equity Fund (the “Equity Fund”), Ancora/Thelen Small-Mid Cap Fund (the “Small-Mid Cap Fund”), Ancora MicroCap Fund (the “MicroCap Fund”), and Ancora Special Opportunity Fund (the “Special Opportunity Fund”), (each, a “Fund” and collectively, the “Funds”) are each a separate series of Ancora Trust (the “Trust”), an Ohio business trust under a Declaration of Trust dated August 20, 2003. The Trust’s Declaration of Trust permits the Trust to issue an unlimited number of shares of beneficial interest representing interests in separate funds of securities, and it permits the Trust to offer separate classes of each such series. The Income Fund’s investment objective is to obtain a high level of income, with a secondary objective of capital appreciation. The Equity Fund’s investment objective is obtaining a high total return, through a combination of income and capital appreciation in the value of its shares. The Small-Mid Cap Fund’s investment objective is to obtain capital appreciation. The MicroCap Fund’s investment objective is to obtain capital appreciation. The Special Opportunity Fund’s investment objective is obtaining a high total return through a combination of income and capital appreciation in the value of its shares. Each Fund is an “open-end” management investment company as defined in the Investment Company Act of 1940, as amended (the “1940 Act”). Each Fund is a “diversified” company as defined in the 1940 Act. The Board of Trustees (the “Board”) of the Trust has authorized that shares of the Funds may be offered in two classes: Class C and Class I (formerly Class D). Class C and Class I shares are identical, except as to minimum investment requirements and the services offered to and expenses borne by each class. Class C shares are a no-load share class. Class I shares are offered continuously at net asset value. Class C shares are subject to a distribution and shareholder service fees. Income and realized/unrealized gains or losses are allocated to each class based on relative net assets. The investment advisor of the Funds is Ancora Advisors LLC (the “Advisor”).
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements. These policies are in conformity with accounting principles generally accepted in the U.S. (“GAAP”).
Security Valuation - All investments in securities are recorded at their estimated fair value, as described in Note 3.
Use Of Estimates - The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting year. Actual results could differ from those estimates.
Federal Income Taxes - The Funds’ policy is to continue to comply with the requirements of the Internal Revenue Code that are applicable to regulated investment companies and
FINANCIAL REVIEW
Ancora Trust
Notes to the Financial Statements (UNAUDITED) (CONTINUED)
June 30, 2014
to distribute all of their taxable income to shareholders. Therefore, no federal income tax provision is required. It is the Funds’ policy to distribute annually, prior to the end of the calendar year, dividends sufficient to satisfy excise tax requirements of the Internal Revenue Code. This Internal Revenue Code requirement may cause an excess of distributions over the book year-end accumulated income. In addition, it is the Funds’ policy to distribute annually, after the end of the fiscal year, any remaining net investment income and net realized capital gains.
The Funds recognize the tax benefits of certain tax positions only where the position is “more likely than not” to be sustained assuming examination by tax authorities. Management has analyzed the Funds’ tax positions, and has concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions taken on returns filed for open tax years (2010-2012), or expected to be taken in the Funds’ 2013 tax returns. The Funds identify their major tax jurisdiction as U.S. Federal; however the Funds’ are not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next twelve months.
As of and during the six months ended June 30, 2014, the Funds’ did not have a liability for any unrecognized tax benefits. The Funds’ recognize interest and penalty, if any, related to recognized tax benefits or income tax expense on the Statements of Operations. During the six months ended June 30, 2014, the Funds’ did not incur any interest or penalties.
Distributions To Shareholders – The Income Fund intends to distribute substantially all of its net investment income, if any, as dividends to its shareholders on a monthly basis. The Equity Fund, Special Opportunity Fund, MicroCap Fund, and Small-Mid Cap Fund intend to distribute substantially all of their net investment income, if any, as dividends to their shareholders on at least an annual basis. Distributions to shareholders are recorded on the ex-dividend date. All the Funds intend to distribute their net realized long term capital gains and net realized short term capital gains, if any, at least once a year. The treatment for financial reporting purposes of distributions made to shareholders during the year from net investment income or net realized capital gains may differ from their ultimate treatment for federal income tax purposes. These differences are caused by differences in the timing and recognition of certain components of income, expense, or realized capital gain for federal income tax purposes.
Where such differences are permanent in nature, they are reclassified in the components of the net assets based on their ultimate characterization for federal income tax purposes. Any such reclassifications will have no effect on net assets, the results of operations, or net asset value per share of a Fund.
Other - The Funds follow industry practice and record security transactions based on the trade date. The specific identification method is used for determining gains or losses for financial statements and income tax purposes. Dividend income is recorded on the ex-dividend date and interest income is recorded on an accrual basis. Discounts and premiums on securities purchased are amortized or accreted using the effective interest method.
FINANCIAL REVIEW
Ancora Trust
Notes to the Financial Statements (UNAUDITED) (CONTINUED)
June 30, 2014
Expenses – Expenses incurred by the Trust that do not relate to a specific Fund of the Trust are allocated to the individual Funds based on each Fund’s relative net assets or other appropriate basis as determined by the Board.
NOTE 3. SECURITIES VALUATIONS
As described in Note 2, all investments in securities are recorded at their estimated fair value. The Funds utilize various methods to measure the fair value of most of their investments on a recurring basis. GAAP establishes a hierarchy that prioritizes inputs to valuation methods. The three levels of inputs are:
Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities that the Funds have the ability to access.
Level 2 - Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, 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, to the extent relevant observable inputs are not available, representing the Funds’ own assumptions about the assumptions a market participant would use in valuating the asset or liability, and would be based on the best information available.
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 instruments categorized in Level 3.
The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, 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.
Fair Value Measurements - A description of the valuation techniques applied to the Funds’ major categories of assets and liabilities measured at fair value on a recurring basis follows.
Money market mutual funds are generally priced at the ending NAV provided by the service agent of the fund. The money market securities will be categorized as Level 1 within the fair value hierarchy.
FINANCIAL REVIEW
Ancora Trust
Notes to the Financial Statements (UNAUDITED) (CONTINUED)
June 30, 2014
Equity securities (common stock including real estate investment trusts, preferred shares, convertible preferred shares, closed-end funds, traditional preferred securities, investment companies, rights, and corporate bond trust certificates) - Equity securities are valued by using market quotations furnished by a pricing service when the Advisor believes such prices accurately reflect the fair market value of such securities. Securities that are traded on any stock exchange are valued by the pricing service at the last quoted sale price. Lacking a last sale price, an exchange traded security is valued by the pricing service at its last bid price. Securities traded in the NASDAQ over-the-counter market are valued by the pricing service at the NASDAQ Official Closing Price. When market quotations are not readily available, when the Advisor determines that the market quotation or the price provided by the pricing service does not accurately reflect the current market value or when restricted or illiquid securities are being valued, such securities are valued at a fair price as determined by the Advisor in good faith, in accordance with guidelines adopted by and subject to review of the Board of Trustees. Manually priced securities held by the Funds (if any) are reviewed by the Board of Trustees on a quarterly basis. To the extent these securities are actively traded and valuation adjustments are not applied, they are classified in Level 1 within the fair value hierarchy.
Fixed income securities - Fixed income securities are valued by a pricing service when the Advisor believes such prices are accurate and reflect the fair market value of such securities. If the Advisor decides that a price provided by the pricing services does not accurately reflect the fair market value of the securities, when prices are not readily available from a pricing service or when restricted or illiquid securities are being valued, securities are valued at fair value as determined in good faith by the Advisor. Short term investments in fixed income securities with maturities of less than 60 days when acquired, or which subsequently are within 60 days of maturity, are valued by using the amortized cost method of valuation. Generally, fixed income securities are categorized as Level 2 within the fair value hierarchy.
The following table summarizes the inputs used to value each Fund’s assets measured at fair value as of June 30, 2014:
| | | | |
Ancora Income Fund Valuation Inputs of Assets * | Level 1 | Level 2 | Level 3 | Total |
Corporate Bond Trust Certificates | $ 9,364,571 | $ - | $ - | $ 9,364,571 |
Traditional Preferred | 1,624,624 | - | - | 1,624,624 |
Investment Companies | 7,808,853 | - | - | 7,808,853 |
REIT Senior Securites | 4,894,635 | - | - | 4,894,635 |
Money Market Fund | 1,840,373 | - | - | 1,840,373 |
Total | $ 25,533,056 | $ - | $ - | $ 25,533,056 |
| | | | |
Ancora Equity Fund Valuation Inputs of Assets * | Level 1 | Level 2 | Level 3 | Total |
Common Stock | $ 7,609,367 | $ - | $ - | $ 7,609,367 |
Investment Companies | 1,489,110 | - | - | 1,489,110 |
Money Market Fund | 573,676 | - | - | 573,676 |
Total | $ 9,672,153 | $ - | $ - | $ 9,672,153 |
| | | | |
FINANCIAL REVIEW
Ancora Trust
Notes to the Financial Statements (UNAUDITED) (CONTINUED)
June 30, 2014
| | | | |
Ancora/Thelen Small-Mid Cap Fund Valuation Inputs of Assets * | Level 1 | Level 2 | Level 3 | Total |
Common Stock | $ 51,821,192 | $ - | $ - | $ 51,821,192 |
Money Market Fund | 1,635,349 | - | - | 1,635,349 |
Total | $ 53,456,542 | $ - | $ - | $ 53,456,542 |
| | | | |
Ancora MicroCap Fund Valuation Inputs of Assets * | Level 1 | Level 2 | Level 3 | Total |
Common Stock | $ 12,037,344 | $ - | $ - | $ 12,037,344 |
Money Market Fund | 415,192 | - | - | 415,192 |
Total | $ 12,452,536 | $ - | $ - | $ 12,452,536 |
| | | | |
Ancora Special Opportunity Fund Valuation Inputs of Assets * | Level 1 | Level 2 | Level 3 | Total |
Common Stock | $ 6,998,606 | $ - | $ - | $ 6,998,606 |
Direct Trust Certificates | 255,000 | - | - | 255,000 |
Investment Companies | 2,466,300 | - | - | 2,466,300 |
Money Market Fund | 1,636,032 | - | - | 1,636,032 |
Total | $ 11,355,938 | $ - | $ - | $ 11,355,938 |
* The Funds did not hold any Level 3 assets during the six months ended June 30, 2014. For more detail on the investments in securities please refer to the Schedule of Investments. The Funds did not hold any derivative investments at any time during the six months ended June 30, 2014. There were no transfers into or out of any levels during the six months ended June 30, 2014 in the Ancora Funds.
The following table sets forth a summary of the changes in the fair value of each Fund’s investments in affiliated issuers for the six months ended June 30, 2014:
| |
Ancora MicroCap Fund | |
| |
Mace Security International, Inc. | Investments |
Balance Beginning at December 31, 2013 | $ 60,750 |
Net Realized Gain/Loss on Sale of Investments | - |
Net Change in Unrealized Depreciation on Investments Held at Year End | (4,500) |
Net Purchases | - |
Net Sales | - |
Balance End at June 30, 2014 | $ 56,250 |
| |
Lakeland Industries, Inc. | Investments |
Balance Beginning at December 31, 2013 | $ 287,885 |
Net Realized Gain/Loss on Sale of Investments | - |
Net Change in Unrealized Appreciation on Investments Held at Year End | 106,147 |
Net Purchases | 28,881 |
Net Sales | - |
Balance End at June 30, 2014 | $ 422,913 |
| |
LNB Bancorp | Investments |
Balance Beginning at December 31, 2013 | $ 100,300 |
Net Realized Gain/Loss on Sale of Investments | - |
Net Change in Unrealized Appreciation on Investments Held at Year End | 112,500 |
Net Purchases | - |
Net Sales | - |
Balance End at June 30, 2014 | $ 121,800 |
FINANCIAL REVIEW
Ancora Trust
Notes to the Financial Statements (UNAUDITED) (CONTINUED)
June 30, 2014
| |
Ancora Special Opportunity Fund | |
| |
Mace Security International, Inc. | Investments |
Balance Beginning at December 31, 2013 | $ 1,012,500 |
Net Realized Gain/Loss on Sale of Investments | - |
Net Change in Unrealized Depreciation on Investments Held at Year End | (75,000) |
Net Purchases | - |
Net Sales | - |
Balance End at June 30, 2014 | $ 937,500 |
| |
Lakeland Industries, Inc. | Investments |
Balance Beginning at December 31, 2013 | $ 526,000 |
Net Realized Gain/Loss on Sale of Investments | - |
Net Change in Unrealized Appreciation on Investments Held at Year End | 190,000 |
Net Purchases | - |
Net Sales | - |
Balance End at June 30, 2014 | $ 716,000 |
| |
Stephan Co. | Investments |
Balance Beginning at December 31, 2013 | $ 182,900 |
Net Realized Gain/Loss on Sale of Investments | - |
Net Change in Unrealized Appreciation on Investments Held at Year End | 83,047 |
Net Purchases | 6,053 |
Net Sales | - |
Balance End at June 30, 2014 | $ 272,000 |
NOTE 4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES
The Trust retains Ancora Advisors LLC to manage the Funds’ investments. As a affiliated member of the Advisor, Richard A. Barone, Chairman of the Trust, is regarded to control the Advisor for purposes of the 1940 Act. Under the terms of the Investment Advisory Agreement, (the “Agreement”), the Advisor manages the Funds’ investments in accordance with the stated policies of the Funds, subject to approval of the Board. The Advisor makes investment decisions for each Fund and places the purchase and sale orders for portfolio transactions. As compensation for management services, the Income Fund, Equity Fund, Small-Mid Cap Fund, MicroCap Fund and Special Opportunity Fund are obligated to pay the Advisor a fee computed and accrued daily and paid monthly at an annual rate of 1.00% of the average daily net assets of each Fund. For the six months ended June 30, 2014, the Advisor earned fees of $121,839 from the Income Fund, $46,886 from the Equity Fund, $238,850 from the Small-Mid Cap Fund, $59,848 from the MicroCap Fund, and $53,766 from the Special Opportunity Fund. At June 30, 2014, payables to the Advisor were $17,611, $7,805, $42,132, $6,543, and $9,268 for the Income Fund, Equity Fund, Small-Mid Cap Fund, MicroCap Fund, and Special Opportunity Fund, respectively.
The Advisor has voluntarily agreed to waive management fees, to the extent of management fees, in order to limit total annual operating expenses for the Income Fund to 2.00% for Class C shares and 1.285% for Class I shares until at least April 30, 2015, but can be terminated by a vote of the Board of Trustees of the Trust if they deem the termination to be beneficial to the Fund shareholders. For the six months ended June 30,
FINANCIAL REVIEW
Ancora Trust
Notes to the Financial Statements (UNAUDITED) (CONTINUED)
June 30, 2014
2014, the Advisor waived management fees of $10,510 for the Income Fund Class I shares. These waivers may be discontinued at any time. As of January 1, 2013 the Advisor has voluntarily agreed to waive management fees, to the extent of management fees, in order to limit total annual operating expenses for the Small-Mid Cap Fund to 1.39% for Class I shares until at least April 30, 2015, but can be terminated by a vote of the Board of Trustees of the Trust if they deem the termination to be beneficial to the Fund shareholders. For the six months ended June 30, 2014, the Advisor did not waive any management fees for the Small-Mid Cap Fund Class I shares. These waivers may be discontinued at any time. As of January 1, 2013 the Advisor has voluntarily agreed to waive management fees, to the extent of management fees, in order to limit total annual operating expenses for the MicroCap Fund to 1.60% for Class I shares until at least April 30, 2015, but can be terminated by a vote of the Board of Trustees of the Trust if they deem the termination to be beneficial to the Fund shareholders. For the six months ended June 30, 2014, the Advisor waived management fees of $8,479 for the MicroCap Fund Class I shares. These waivers may be discontinued at any time. 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 Funds have adopted a Distribution and Shareholder Servicing Plan (each such plan, a “Distribution Plan”) pursuant to Rule 12b-1 under the Investment Company Act of 1940 for each class of shares authorized. The principal activities for which payments will be made include (i) compensation of securities dealers (including America Northcoast Securities, Inc.) and others for distribution services and (ii) advertising. In addition, each of the Funds shall pay service fees pursuant to agreements with dealers (including America Northcoast Securities, Inc.) or other services. Richard A. Barone, Chairman of the Trust and controlling shareholder of Arch Eagle Group, Inc., the parent company of America Northcoast Securities, Inc., has an indirect financial interest in the operation of the Plan.
For the six months ended June 30, 2014, the fees earned and payable were as follows:
| | | |
Fund |
Annual Rate |
Fees Earned | Amount payable at June 30, 2014 |
Income Fund | | | |
Class C | 0.50% | $ 32,965 | $ 5,339 |
| | | |
Equity Fund | | | |
Class C | 0.75% | $ 27,031 | $ 5,166 |
| | | |
Small-Mid Cap Fund | | | |
Class C | 0.75% | $ 4,304 | $ 1,711 |
| | | |
MicroCap Fund | | | |
Class C | 0.75% | $ 3,013 | $ 2,582 |
FINANCIAL REVIEW
Ancora Trust
Notes to the Financial Statements (UNAUDITED) (CONTINUED)
June 30, 2014
| | | |
| | | |
Special Opportunity Fund | | | |
Class C | 0.75% | $ 27,089 | $ 5,516 |
As of January 1, 2013, the Fund has eliminated all distribution fees for Class D by converting Class D shares to Class I shares of the Income Fund, Equity Fund, MicroCap Fund, and Special Opportunity Fund.
The Funds have entered into an Administration Agreement with The Ancora Group, Inc. Pursuant to the Administration Agreement, each of the Funds will pay an administration fee equal to 0.10% of average net assets of each Fund monthly. Under the Administration Agreement, The Ancora Group, Inc. will assist in maintaining office facilities, furnish clerical services, prepare and file documents with the Securities and Exchange Commission, coordinate the filing of tax returns, assist with the preparation of the Funds’ Annual and Semi-Annual Reports to shareholders, monitor the Funds’ expense accruals and pay all expenses, monitor the Funds’ sub-chapter M status, maintain the Funds’ fidelity bond, monitor each Funds’ compliance with such Funds’ policies and limitations as set forth in the Prospectus and Statement of Additional Information and generally assist in the Funds’ operations. For the six months ended June 30, 2014, The Ancora Group, Inc. earned $12,184 from the Income Fund, $4,688 from the Equity Fund, $23,885 from the Small-Mid Cap Fund, $5,985 from the MicroCap Fund, and $5,377 from the Special Opportunity Fund. As of June 30, 2014, The Ancora Group, Inc. was owed $2,091, $781, $4,213, $987, and $927 by the Income Fund, Equity Fund, Small-Mid Cap Fund, MicroCap Fund, and Special Opportunity Fund, respectively, for administrative services.
The Funds’ Board of Trustees has determined that any portfolio transaction for any of the Funds may be effected through America Northcoast Securities, Inc., if, in the Advisor’s judgment, the use of America Northcoast Securities, Inc. is likely to result in price and execution at least as favorable as those of other qualified brokers, and if, in the transaction, America Northcoast Securities, Inc. charges the Funds a commission rate consistent with those charged by America Northcoast Securities, Inc. to comparable unaffiliated customers in similar transactions. For the six months ended June 30, 2014, America Northcoast Securities, Inc. received commissions on security transactions of $26,609 for the Income Fund, $2,368 for the Equity Fund, $5,280 for the Small-Mid Cap Fund, $1,754 for the MicroCap, and $19,544 for the Special Opportunity Fund.
The Trust retains America Northcoast Securities, Inc. (the “Distributor”), to act as the principal distributor of its shares. The Distributor is an affiliate of the Adviser and serves without compensation other than fees paid to America Northcoast Securities under the 12b-1 Plan.
NOTE 5. INVESTMENTS
For the six months ended June 30, 2014, purchases and sales of investment securities, other than short-term investments and short-term U.S. Government obligations were as follows:
FINANCIAL REVIEW
Ancora Trust
Notes to the Financial Statements (UNAUDITED) (CONTINUED)
June 30, 2014
| | | | | |
| Income Fund | Equity Fund | Small-Mid Cap Fund | MicroCap Fund | Special Opportunity Fund |
Purchases | | | | | |
U.S. Government Obligations | $ - | $ - | $ - | $ - | $ - |
Other | $ 13,116,003 | $ 867,439 | $ 23,145,553 | $ 1,449,936 | $ 5,707,569 |
| | | | | |
Sales | | | | | |
U.S. Government Obligations | $ - | $ - | $ - | $ - | $ - |
Other | $ 12,919,423 | $ 2,283,969 | $ 17,169,805 | $ 952,543 | $ 6,079,182 |
At June 30, 2014, the costs of securities for federal income tax purposes were $24,857,142, $5,844,050, $44,873,567, $9,072,213, and $7,747,248 for the Income Fund, Equity Fund, Small-Mid Cap Fund, MicroCap Fund, and Special Opportunity Fund respectively.
As of June 30, 2014, the net unrealized appreciation (depreciation) of investments for tax purposes was as follows:
| | | | | |
| Income Fund | Equity Fund | Small-Mid Cap Fund | MicroCap Fund | Special Opportunity Fund |
Gross Appreciation | $ 858,224 | $ 3,844,403 | $ 9,667,275 | $ 4,035,992 | $ 2,445,117 |
Gross (Depreciation) | (182,310) | (16,300) | (1,084,300) | (1,118,101) | (488,667) |
Net Appreciation on Investments | $ 675,914 | $ 3,828,103 | $ 8,582,975 | $ 2,917,891 | $ 1,956,450 |
NOTE 6. DISTRIBUTIONS TO SHAREHOLDERS
The tax character of distributions paid during the six months ended June 30, 2014 is as follows:
| | | | |
| Income Fund Class C | Income Fund Class I | Equity Fund Class C | Equity Fund Class I |
Ordinary income | $ 471,808 | $ 423,879 | $ - | $ - |
Short-term capital gain | - | - | - | - |
Long-term capital gain | - | - | - | - |
Return of capital | - | - | - | - |
| $ 471,808 | $ 423,879 | $ - | $ - |
| | | | |
| Small-Mid Cap Fund Class C | Small-Mid Cap Fund Class I | MicroCap Fund Class C | MicroCap Fund Class I |
Ordinary income | $ - | $ - | $ - | $ - |
Short-term capital gain | - | - | - | - |
Long-term capital gain | - | - | - | - |
Return of capital | - | - | - | - |
| $ - | $ - | $ - | $ - |
FINANCIAL REVIEW
Ancora Trust
Notes to the Financial Statements (UNAUDITED) (CONTINUED)
June 30, 2014
| | |
| Special Opportunity Fund Class C | Special Opportunity Fund Class I |
Ordinary income | $ - | $ - |
Short-term capital gain | - | - |
Long-term capital gain | - | - |
Return of capital | - | - |
| $ - | $ - |
The tax character of distributions paid during the year ended December 31, 2013 is as follows:
| | | | |
| Income Fund Class C | Income Fund Class I | Equity Fund Class C | Equity Fund Class I |
Ordinary income | $ 542,852 | $ 431,256 | $ - | $ - |
Short-term capital gain | - | - | - | - |
Long-term capital gain | - | - | - | - |
Return of capital | 400,955 | 318,530 | - | - |
| $ 943,807 | $ 749,786 | $ - | $ - |
| | | | |
| Small-Mid Cap Fund Class C | Small-Mid Cap Fund Class I | MicroCap Fund Class C | MicroCap Fund Class I |
Ordinary income | $ 16,738 | $ 702,745 | $ 6,049 | $ 82,618 |
Short-term capital gain | - | - | - | - |
Long-term capital gain | - | - | 51,790 | 707,298 |
Return of capital | - | - | - | - |
| $ 16,738 | $ 702,745 | $ 57,839 | $ 789,916 |
| | |
| Special Opportunity Fund Class C | Special Opportunity Fund Class I |
Ordinary income | $ - | $ - |
Short-term capital gain | - | - |
Long-term capital gain | 83,740 | 39,769 |
Return of capital | - | - |
| $ 83,740 | $ 39,769 |
FINANCIAL REVIEW
Ancora Trust
Notes to the Financial Statements (UNAUDITED) (CONTINUED)
June 30, 2014
As of December 31, 2013, the components of distributable earnings on a tax basis were as follows:
| | | | | |
|
Income Fund |
Equity Fund |
Small-Mid Cap Fund |
MicroCap Fund | Special Opportunity Fund |
Accumulated undistributed ordinary income | $ - | $ - | $ 136,684 | $ 54,675 | $ - |
Accumulated undistributed capital gain (capital loss carry forward) | (512,900) | (711,842) | - | 104,802 | 184,643 |
Unrealized appreciation (depreciation) | (869,109) | 3,732,233 | 8,347,896 | 2,768,666 | 1,960,656 |
| $(1,382,009) | $3,020,391 | $ 8,484,580 | $2,928,143 | $ 2,145,299 |
NOTE 7. CAPITAL LOSS CARRYFORWARDS
At December 31, 2013, the Funds had available for federal purposes, the following unused capital loss carry forwards.
| | | | | |
Expiration Date |
Income Fund |
Equity Fund |
Small-Mid Cap Fund |
MicroCap Fund | Special Opportunity Fund |
2017 | $ 512,900 | $ 711,842 | $ - | $ - | $ - |
Total | $ 512,900 | $ 711,842 | $ - | $ - | $ - |
During the year ended December 31, 2013, the Income Fund utilized $173,199 of its capital loss carryforward, the Equity Fund utilized $864,088 of its capital loss carryforward, and the Special Opportunity fund utilized $916,667 of its capital loss carryforward.
NOTE 8. BENEFICIAL OWNERSHIP
The beneficial ownership, either directly or indirectly, of more than 25% of the voting securities of a fund creates a presumption of control of the fund, under Section 2(a)(9) of the Investment Company Act of 1940. As of June 30, 2014, Pershing & Company owned, for the benefit of its customers, the following percentages of the outstanding shares:
| |
Income Fund | 93.61% |
Equity Fund | 95.20% |
Small-Mid Cap Fund | 64.92% |
MicroCap Fund | 94.52% |
Special Opportunity Fund | 97.50% |
FINANCIAL REVIEW
Ancora Trust
Notes to the Financial Statements (UNAUDITED) (CONTINUED)
June 30, 2014
NOTE 9. SUBSEQUENT EVENTS
The Trust has added Class S shares for each of the Funds available to certain investors per terms of the prospectus.
FINANCIAL REVIEW
Ancora Trust
Notes to the Financial Statements (UNAUDITED) (CONTINUED)
June 30, 2014
PORTFOLIO HOLDINGS DISCLOSURE POLICY (UNAUDITED)
The Funds’ disclose their portfolio holdings in the following manner: (i) the funds file complete schedules of portfolio holdings with the Commission for the first and third quarter each year on Form N-Q; (ii) the Funds’ form N-Q are available on the Commission website at http:www.sec.gov and in annual and semi-annual reports to shareholders’ (iii) the Funds’ Form N-Q may be reviewed and copied at the Commission Public Reference Room in Washington, DC, and that information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330; (iv) on the Funds’ internet site www.ancorafunds.com approximately 10 days after the end of each fiscal quarter, which information is current as of the end of such fiscal quarter’ and (v) is available upon request by contacting the Funds in writing or by phone.
PROXY VOTING (UNAUDITED)
A description of the policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities and information regarding how the Funds voted those proxies during the most recent 12 month period ended June 30, is available without charge upon request by (1) calling the Funds at (866) 626-2672; and (2) from the Funds’ documents filed with the Securities and Exchange Commission (“SEC”) on the SEC’s website at www.sec.gov.
FUND EXPENSES
ABOUT YOUR FUND'S EXPENSES - (UNAUDITED)
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, reinvested dividends, or other distributions; redemption fees; and exchange fees; and (2) ongoing costs, including management fees; distribution and/or service (12b-1) fees; and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from January 1, 2014 to June 30, 2014.
Actual Expenses
The first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
FUND EXPENSES
ABOUT YOUR FUND'S EXPENSES - (UNAUDITED) (CONTINUED)
| | | |
Ancora Income Fund | Beginning Account Value | Ending Account Value | Expenses Paid During the Period* |
| January 1, 2014 | June 30, 2014 | January 1, 2014 to June 30, 2014 |
Actual | | | |
Class C | $1,000.00 | $1,101.40 | $10.26 |
Class I | $1,000.00 | $1,104.09 | $6.70 |
Hypothetical (5% Annual Return before expenses) | |
Class C | $1,000.00 | $1,015.03 | $9.84 |
Class I | $1,000.00 | $1,018.42 | $6.43 |
*Expenses are equal to the Fund’s annualized expense ratio of 1.97% and 1.285%, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). |
| | | |
Ancora Equity Fund | Beginning Account Value | Ending Account Value | Expenses Paid During the Period* |
| January 1, 2014 | June 30, 2014 | January 1, 2014 to June 30, 2014 |
Actual | | | |
Class C | $1,000.00 | $1,063.98 | $13.46 |
Class I | $1,000.00 | $1,067.49 | $9.64 |
Hypothetical (5% Annual Return before expenses) | |
Class C | $1,000.00 | $1,011.75 | $13.12 |
Class I | $1,000.00 | $1,015.47 | $9.39 |
* Expenses are equal to the Fund’s annualized expense ratio of 2.63% and 1.88%, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). |
| | | |
Ancora/Thelen Small Mid-Cap Equity Fund | Beginning Account Value | Ending Account Value | Expenses Paid During the Period* |
| January 1, 2014 | June 30, 2014 | January 1, 2014 to June 30, 2014 |
Actual | | | |
Class C | $1,000.00 | $1,045.91 | $10.86 |
Class I | $1,000.00 | $1,050.04 | $6.86 |
Hypothetical (5% Annual Return before expenses) | |
Class C | $1,000.00 | $1,014.18 | $10.69 |
Class I | $1,000.00 | $1,018.10 | $6.76 |
* Expenses are equal to the Fund’s annualized expense ratio of 2.14% and 1.35%, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). |
FUND EXPENSES
ABOUT YOUR FUND'S EXPENSES - (UNAUDITED) (CONTINUED)
| | | |
Ancora MicroCap Fund | Beginning Account Value | Ending Account Value | Expenses Paid During the Period* |
| January 1, 2014 | June 30, 2014 | January 1, 2014 to June 30, 2014 |
Actual | | | |
Class C | $1,000.00 | $1,050.45 | $12.71 |
Class I | $1,000.00 | $1,055.75 | $8.16 |
Hypothetical (5% Annual Return before expenses) | |
Class C | $1,000.00 | $1,012.40 | $12.47 |
Class I | $1,000.00 | $1,016.86 | $8.00 |
* Expenses are equal to the Fund’s annualized expense ratio of 2.50% and 1.60%, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). |
| | | |
Ancora Special Opportunity Fund | Beginning Account Value | Ending Account Value | Expenses Paid During the Period* |
Fund | January 1, 2014 | June 30, 2014 | January 1, 2014 to June 30, 2014 |
Actual | | | |
Class C | $1,000.00 | $1,074.63 | $13.17 |
Class I | $1,000.00 | $1,079.32 | $9.33 |
Hypothetical (5% Annual Return before expenses) | |
Class C | $1,000.00 | $1,012.10 | $12.77 |
Class I | $1,000.00 | $1,015.82 | $9.05 |
* Expenses are equal to the Fund’s annualized expense ratio of 2.56% and 1.81%, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). |
TRUSTEES, OFFICERS, & SERVICE PROVIDERS
The Board of Trustees is responsible for managing the Funds’ business affairs and for exercising each Fund’s powers except those reserved for the shareholders. The day-to-day operations of the Funds are conducted by its officers. The following table provides biographical information with respect to each current Trustee and officer of the Funds.
| | | | | |
Name, Address and Age | Position(s) Held with the Fund | Term of Office (2) and Length of Time Served | Principal Occupation(s) During the Past 5 Years | Number of Portfolios in Fund Complex Overseen | Other Directorships |
Independent Directors: | | | | |
Raj Aggarwal 7380 Sherman Road Cleveland, OH 44026 | Trustee | Since November 15, 2003 | Visiting Research Scholar at Federal Reserve Bank of Cleveland since 2013. Frank C. Sullivan Professor of International Business and Finance at University of Akron from 2006 to 2013 and the former Dean of the College of Business Administration. Firestone Chair and Professor of Finance at Kent State University from 1999 to the 2006; Mellon Chair in and Professor of Finance at John Carroll University from 1987 to 1999. | 5 | None. |
66 |
|
| | | | |
Donald Lerner | Trustee | Since | Consultant to the marking device industry and private investor. Owner of Ace Rubber Company (marking devices) until 1999. | 5 | None. |
200 North Folk Dr., Bentleyville, OH 44022 78 | November 15, 2003 |
| |
Anne Peterson Ogan 115 West Juniper Lane, Moreland Hills, OH 44022, | Trustee | Since November 15, 2003 | President of The Proper Analysis Corp. (investment management firm) from 1993 to the present. | 5 | None. |
66 | |
Interested Director: | | | | |
Richard A. Barone (1) | Chairman, Trustee and Portfolio Manager | Since August 2, 2003 | Portfolio Manager of the Ancora Funds since 2004; Chairman, Director and Portfolio Manager of Ancora Advisors LLC since 2003; Chairman and Director of Arch Eagle Group, Inc. (Formerly Ancora Capital, Inc.) since 2002; Chairman and Director of Ancora Securities, Inc. since 2000; Chairman and Director of the Ancora Group Inc. since 2010; member of the Executive Committee of the Ancora entities since 2006; Portfolio Manager of Fifth Third Investment Advisors from 2001 to 2003; Chief Executive Officer of Maxus Investment Group (financial services) until 2001; Portfolio Manager of Maxus Income Fund, Maxus Equity Fund and Maxus Aggressive Value Fund until 2001. | 5 | The Stephen Company (TSC)
Mace Security International (MACE) |
6060 Parkland Boulevard, Suite 200
Cleveland, Ohio 44124 |
71 |
|
(1) Richard A. Barone is considered an “interested person” as defined in Section 2(a) (19) of the 1940 Act by virtue of his affiliation with the Advisor.
(2) Each trustee holds office for an indefinite term until the earlier of (i) the election of his or her successor or (ii) the date the trustee dies, resigns or is removed.
TRUSTEES, OFFICERS, & SERVICE PROVIDERS
(CONTINUED)
| | | | | |
Name, Address and Age | Position(s) Held with the Fund | Term of Office (2) and Length of Time Served | Principal Occupation(s) During the Past 5 Years | Number of Portfolios in Fund Complex Overseen | Other Directorships |
Officers: | | | | | |
Joseph M Spidalieri 6060 Parkland Boulevard, Suite 200
Cleveland, Ohio 44124 35 | Chief Compliance Officer | Since March 1, 2011 | Chief Compliance Officer of The Ancora Group, Inc.; Director of Compliance of Ancora Securities, Inc. until 2013; Director of Compliance of Ancora Capital Inc until 2013; Director of Compliance of The Ancora Group Inc. | 5 | None. |
Bradley A. Zucker 6060 Parkland Boulevard, Suite 200
Cleveland, Ohio 44124 40 | Secretary | Since August 2, 2003 | Chief Financial Officer of Ancora Advisors LLC; Chief Financial Officer and Director of Ancora Securities, Inc. until 2013; Chief Financial Officer and Director of Ancora Capital Inc. until 2013; Chief Financial Officer and Director of The Ancora Group Inc.; member of the Executive Committee for the Ancora entities | 5 | None. |
(2) Each trustee holds office for an indefinite term until the earlier of (i) the election of his or her successor or (ii) the date the trustee dies, resigns or is removed.
DIRECTORS
Richard A. Barone
Raj Aggarwal
Donald Lerner
Anne Peterson Ogan
OFFICERS
Richard A. Barone, Chairman and Treasurer
Bradley Zucker, Secretary
Joseph Spidalieri, Chief Compliance Officer
INVESTMENT ADVISOR
Ancora Advisors LLC
6060 Parkland Boulevard, Suite 200
Cleveland, Ohio 44124
DISTRIBUTOR
America Northcoast Securities, Inc.
2000 Auburn Drive, Suite 300
Cleveland, Ohio 44122
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
Cohen Fund Audit Services, Ltd.
1350 Euclid Avenue, Suite 800
Cleveland, Ohio 44115
LEGAL COUNSEL
McDonald Hopkins LLC
2100 Bank One Center
600 Superior Avenue E.
Cleveland, OH 44114
CUSTODIAN
U.S. Bank N.A.
425 Walnut Street
Cincinnati, OH 45202
TRANSFER AGENT
AND FUND ACCOUNTANT
Mutual Shareholder Services, LLC.
8000 Town Centre Drive Suite 400
Broadview Heights, OH 44147
This report is intended only for the information of shareholders or those who have received the Funds’ prospectus which contains information about the Funds’ management fee and expenses. Please read the prospectus carefully before investing.
The Funds’ Statement of Additional Information includes additional information about the Funds and is available upon request at no charge by calling the Fund.
Distributed by America Northcoast Securities, Inc. Member FINRA/SIPC
Item 2. Code of Ethics Not applicable.
Item 3. Audit Committee Financial Expert . The registrant’s Board of Trustees has determined that it does not have an audit committee financial expert serving on its audit committee. At this time, the registrant believes that the experience provided by each member of the audit committee together offer the registrant adequate oversight for the registrant’s level of financial complexity. Not applicable.
Item 4. Principal Accountant Fees and Services Not applicable.
Item 5. Audit Committee of Listed Companies. Not applicable.
Item 6. Schedule of Investments. Included in Report to Shareholders.
Item 7. Disclosure of Closed End fund Proxy Voting Policies/Procedures. Not applicable.
Item 8. Portfolio Managers of Closed-End Funds. Not applicable.
Item 9. Purchases of Equity Securities by Closed End Funds. Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders. Not applicable.
Item 11. Controls and Procedures.
(a)
Disclosure Controls & Procedures. Principal executive and financial officers have concluded that Registrant’s disclosure controls & procedures are effective based on their evaluation as of a date within 90 days of the filing date of this report.
(b)
Internal Controls. There were no significant changes in Registrant’s internal controls of in other factors that could significantly effect these controls subsequent to the date of their evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.
Item 12. Exhibits.
(a)(1)
EX-99.CERT. Filed herewith.
(a)(2)
Any written solicitation to purchase securities under Rule 23c-1 under the Act (17 CFR 270.23c-1) sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons. Not applicable.
(b)
EX-99.906CERT. Filed herewith.
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.
Ancora Trust
By /s/Richard A. Barone
* Richard A. Barone
Chairman and Treasurer
Date: September 8, 2014
*Print the name and title of each signing officer under his or her signature.
