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Information
on the Hennessy Total Return Fund
|
|
| Hennessy
Total Return Fund
Fund
Objective
The goal of the Hennessy Total Return Fund is to seek total return
consisting of capital appreciation and current income. The Fund
will attempt to exceed the total return of the Dow Jones Industrial
Average in the long run by investing 75% 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 25% of the Fund's net assets in U.S. Treasury
Securities with a remaining maturity of one year or less. Since
a fund cannot invest more than 5% in a single stock, this is accomplished
by borrowing against the Treasury Securities.
This results in a portfolio that acts like 75% of the Fund's net
assets are in equities and 25% of the Fund's net assets are in U.S.
Treasury Securities.
Investor
Profile
The Hennessy Total Return Fund follows a value-oriented strategy
that may be suitable for investors who are comfortable with more
market exposure than our Hennessy Balanced Fund. This fund potentially
may achieve a slightly higher market rate of return while taking
on slightly more 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
75% of the Fund's investable cash and invest the remaining 25% 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
Hennessy Total Return Fund. As you can see, the stock selection
process is clear and rigorous.
-
30 Stocks that make up the Dow Jones Industrial Average
-
75% invested in the 10 stocks with the Highest Dividend Yield
PLUS
-
25% 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 |
Since
Inception
7/29/98 |
|
|
| HDOGX |
-17.62% |
-21.55% |
1.27% |
3.57% |
2.47% |
|
|
| S&P
500 Index |
-11.91% |
-13.12% |
4.41% |
7.58% |
2.98% |
|
|
| DJIA |
-13.38% |
-13.27% |
5.83% |
7.20% |
4.58% |
|
|
| 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 |
| |
HDOGX |
S&P
500 Index |
DJIA |
1999 |
1.80% |
21.04% |
27.21% |
2000 |
6.86% |
-9.10% |
-4.85% |
2001 |
-0.25% |
-11.89% |
-5.43% |
2002 |
-8.69% |
-22.10% |
-15.01% |
2003 |
22.57% |
28.68% |
28.28% |
2004 |
2.34% |
10.88% |
5.31% |
2005 |
-0.11% |
4.91% |
1.72% |
2006 |
21.83% |
15.80% |
19.05% |
2007 |
2.03% |
5.49% |
8.88% |
Fund
Information (as of 06/30/08) |
| Total
Net Assets |
$68
million |
| Beta
(vs. S&P 500) |
0.81 |
| Gross
Expense Ratio (including interest expense) |
3.04%* |
| Net
Expense Ratio (excluding interest expense) |
1.16%* |
| 12b-1
Fees |
0.15% |
| CUSIP |
425
887 205 |
| Ticker |
HDOGX |
| SEC
Fund Identifier |
Series
S000000836; Class C000002451 |
| Inception |
7/29/98 |
| Min
Investment |
$2500 |
| Min
Investment (IRAs) |
$250 |
| Dividends
Paid |
Quarterly |
| *
= Interest expense is estimated to be 1.88% annually |
Portfolio
Composition
|
|
| Equity |
73.9% |
| Fixed
Income |
22.8% |
| Cash |
3.3% |
Equity
Sector Weighting (as of 06/30/08)
| Industry |
Weight |
| Consumer
Discretionary |
10.8% |
| Consumer
Staples |
9.1% |
| Financials |
17.6% |
| Health
Care |
19.6% |
| Industrials
|
8.2% |
| Materials |
11.9% |
| Telecom
Services |
22.8% |
Top
10 Equity Fund Holdings (as of 06/30/08)
| Company
Name |
Percentage
of Assets |
| DU
PONT (E.I.) DE NEMOURS |
8.5% |
| VERIZON
COMMUNICATIONS INC. |
8.2% |
|
8.2% |
| J.P.
MORGAN CHASE & COMPANY |
7.4% |
| PFIZER
INC |
7.3% |
| MERCK & CO. INC. |
6.7% |
|
5.9% |
| CITIGROUP
INC. |
|
| PHILIP MORRIS INTERNATIONAL |
|
4.6% |
| GENERAL MOTORS CORP. |
4.0% |
International
Holdings
|
|
|
| |
|
|
The
performance returns assume all dividends and capital gains were reinvested in
the Fund. The performance returns for the Fund reflect a fee wavier in effect;
in the absence of such waiver returns would be reduced.
The Fund's composition
and sector weightings are shown as a percentage of the Fund's total net assets.
Portfolio composition and sector weightings are 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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