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Information
on the Hennessy Balanced Fund
|
|
|
Hennessy
Balanced Fund
Fund
Objective
The goal of the Hennessy Balanced Fund is to seek capital appreciation
and current income. The Fund attempts to meet its goals by investing
50% of the Fund's net assets equally weighted in the top ten dividend
yielding stocks of the Dow Jones Industrial Average (also known
as the "Dogs of the Dow" ) and investing 50% of the Fund's
net assets in U.S. Treasury securities with a remaining maturity
of one year or less.
Investor
Profile
The Hennessy Balanced Fund follows a value-oriented strategy that
may be suitable for conservative investors who seek a market rate
of return with potentially half of the risk and volatility.
Fund
Strategy
On numerous dates throughout the year, the Fund will buy the 10
stocks that meet the criteria of highest dividend yield in the Dow
Jones Industrial Average (aka, “Dogs of the Dow”) with
50% of the Fund's investable cash and invest the remaining 50% of
the Fund's cash in U.S. Treasury securities
with a remaining maturity of one year. Each new individual portfolio
is then reevaluated after one year, making all gains long-term.
Having multiple rebalance dates reduces the volatility of the fund
and allows us to better manage the inflows and outflows in the fund.
Stock
Selection Process
The following chart illustrates how stocks are selected for the
Balanced Fund strategy. As you can see, the stock selection process
is clear and rigorous.
-
30 Stocks that make up the Dow Jones Industrial Average
-
50% invested in the 10 stocks with the Highest Dividend Yield
PLUS
-
50% invested in U.S. Treasury securities
with a remaining maturity of one year or less
Historical
Performance
| Average
Annual Total Returns as of 06/30/08 |
| |
YTD |
1
Yr |
3
Yr |
5
Yr |
10
Yr |
Since
Inception
11/1/96 |
|
| HBFBX |
-12.61% |
-14.83% |
1.38% |
1.93% |
1.89% |
3.74% |
|
| S&P
500 Index |
-11.91% |
-13.12% |
4.41% |
7.58% |
2.88% |
7.67% |
|
| DJIA |
-13.38% |
-13.27% |
5.83% |
7.20% |
4.50% |
8.25% |
|
| Performance
data quoted represents past performance; past performance 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. Current performance of the fund may be lower
or higher than the performance quoted. Performance data current
to the most recent month end may be obtained by clicking here.
Performance shown does not include a 1.5% redemption
fee on shares held less than 90 days. If it did, total returns
would be reduced. |
| |
| Year
by Year Total Returns |
| |
HBFBX |
S&P
500 Index |
DJIA |
1997 |
13.01% |
33.36% |
24.87% |
1998 |
7.43% |
28.58% |
18.13% |
1999 |
1.55% |
21.04% |
27.21% |
2000 |
4.96% |
-9.10% |
-4.85% |
2001 |
0.55% |
-11.89% |
-5.43% |
2002 |
-4.55% |
-22.10% |
-15.01% |
2003 |
12.38% |
28.68% |
28.28% |
2004 |
0.20% |
10.88% |
5.31% |
2005 |
-2.08% |
4.91% |
1.72% |
2006 |
16.03% |
15.80% |
19.05% |
2007 |
2.65% |
5.49% |
8.88% |
| Fund
Information (as of 06/30/08) |
| Total
Net Assets |
$13 million |
| Beta
(vs. S&P 500) |
0.52 |
| Expense
Ratio |
1.36% |
| 12b-1
Fees |
0.15% |
| CUSIP |
425
887 106 |
| Ticker |
HBFBX |
| SEC
Fund Identifier |
Series
S000000835; Class C000002450 |
| Inception |
3/8/96 |
| Min
Investment |
$2500 |
| Min
Investment (IRAs) |
$250 |
| Dividends
Paid |
Quarterly |
| Portfolio
Composition |
|
| Equity |
47.9% |
| Fixed
Income |
49.8% |
| Cash |
2.3% |
Equity
Sector Weighting (as
of 06/30/08)
| Industry |
Weight |
| Consumer
Discretionary |
12.4% |
| Consumer
Staples |
2.1% |
| Financials |
22.0% |
| Health
Care |
16.5% |
| Industrials
|
10.6% |
| Materials |
12.2% |
| Telecom
Services |
24.2% |
Top
10 Equity Fund Holdings (as
of 06/30/08)
| Company
Name |
Percentage
of Assets |
|
5.6% |
| DU PONT (E.I.) DE NEMOURS |
|
5.6% |
| VERIZON COMMUNICATIONS INC |
|
5.5% |
| |
4.9% |
| GENERAL ELECTRIC CO. |
4.8% |
| J.P. MORGAN CHASE & COMPANY |
|
|
4.8% |
|
3.5% |
|
2.9% |
|
2.8% |
|
2.6% |
International
Holdings
|
|
|
| |
|
|
A
Fund's performance, especially for short time periods, should not be the sole
factor in making an investment decision. The performance returns assume all
dividends and capital gains were reinvested in the Funds.
The Fund's holdings
and sector weightings are shown as a percentage of the Fund's total net assets.
Portfolio composition is subject to change at any time and should not be considered
a recommendation to buy or sell a particular security.
The Dow Jones Industrial
Average is the property of Dow Jones & Company, Inc. Dow Jones & Company,
Inc. is not affiliated with the Hennessy Funds or their investment advisors.
Dow Jones & Company has not participated in any way in the creation of Hennessy
Funds or in the selection of stocks included in the Hennessy Funds and has not
approved any information included in this website. You cannot invest directly
in the Dow Jones Industrial Average.
The S&P 500
Index is a broad based unmanaged index of 500 stocks which is widely recognized
as representative of the equity market in general.
The Index figures do not reflect any fees or expenses. You cannot invest directly
in an index.
The advisor had
an agreement in place to limit expenses through June 2005. The expense levels
were not been exceeded during this time.
The Fund
is non-diversified, meaning it may concentrate its assets in fewer individual
holdings than a diversified fund, making it more exposed to individual stock
volatility than a diversified fund.
** Beta is a measure
of a portfolio's sensitivity to market movements (as represented by the S&P
500). The index has a beta of 1.0. A beta of more (less) than 1.0 indicates
that a fund's historical returns have fluctuated more (less) than the index.
Please refer to
the prospectus for important information about
the investment company including investment objectives, risks, charges and expenses.
The prospectus should be read carefully before investing. Please call 800-966-4354
to request a hard copy of the prospectus.
Quasar Distributors,
LLC, Distributor.
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