Information on the Hennessy Cornerstone Value Fund
Hennessy Cornerstone Value Fund

Fund Objective
The goal of the Cornerstone Value Fund is to seek total return consisting of capital appreciation and current income.

Investor Profile
The Cornerstone Value Fund follows a value-oriented strategy that may be suitable for investors who want to invest over the long-term and who are willing to be fully invested in the market. This fund potentially may achieve a higher market rate of return while taking on comparable risk and volatility.

Fund Strategy
Every year the Fund will buy the 50 stocks that meet the following criteria: at the time of purchase, the companies with the highest dividend yield: above average market capitalization; above average cash flow; above average common shares outstanding; and 1.5 times above average sales with acceptable liquidity. The Fund's portfolio is rebalanced once a year.

Stock Selection Process
The following chart illustrates how stocks are selected for the Cornerstone Value Fund. As you can see, the stock selection process is clear and rigorous.

  1. Compustat Database, without (or excluding) utility stocks
  2. Market Capitalization greater than the average stock in the database
  3. Cash Flow greater than the average stock in the database
  4. Common Shares Outstanding greater than the average stock in the database
  5. Sales 1.5 times greater than the average stock in the database
  6. 50 stocks with the highest dividend yield

The fund is then rebalanced once a year.

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
 
HFCVX
-22.36%
-27.94%
-0.69%
4.64%
3.59%
4.89%
  
S&P 500 Index
-11.91
-13.12%
4.41%
7.58%
2.88%
7.01%
  
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
 
HFCVX
S&P 500 Index
  
1997
15.29%
33.36%
  
1998
6.59%
28.58%
  
1999
6.01%
21.04%
  
2000
8.77%
-9.10%
  
2001
6.60%
-11.89%
  
2002
-16.03%
-22.10%
  

2003
28.39%
28.68%
  
2004
11.67%
10.88%
  
2005
1.91%
4.91%
  
2006
20.14%
15.80%
  
2007
0.59%
5.49%
  

Fund Information (as of 06/30/08)
Total Net Assets $132 million
Beta (vs. S&P 500) 1.03
Expense Ratio 1.17%
CUSIP 425 888 203
Ticker HFCVX
SEC Fund Identifier Series S000000840; Class C000002455
Inception 11/1/96
Min Investment $2500
Min Investment (IRAs) $250
Dividends Paid Annually
Portfolio Composition  
Equity 97.6%
Cash 2.4%

Equity Sector Weighting (as of 06/30/08)

Industry
Weight
Consumer Discretionary
9.1%
Consumer Staples
6.6%
Energy
11.3%
Financials
34.0%
Health Care
6.2%
Industrials
4.4%
Information Technology
3.0%
Materials
7.5%
Telecom Services
17.9%

Top 10 Equity Fund Holdings (as of 06/30/08)

Company Name
Percentage of Assets
SASOL LTD (ADR)
3.3%
CHUNGHWA TELECOM CO.  (ADR)
3.2%
TAIWAN SEMICONDUCTOR  (ADR)
3.0%
ENI SPA  (ADR)
2.8%
SOUTHERN COPPER CORP.
2.7%
DU PONT (E.I.) DE NEMOURS
2.5%
ENTERPRISE PRODS PRTNER  (LP)
2.5%
EMBARQ CORP.
2.5%
BP PLC  (ADS)
2.5%
PITNEY BOWES INC.
2.4%

International Holdings (as of 06/30/08)

France
2.2%
Germany
2.0%
Ireland
1.8%
Italy
2.8%
Netherlands
4.1%
South Africa
3.3%
South Korea
2.1%
Taiwan
6.2%
United Kingdom
14.2%
USA
61.3%
Total
100.0%

 

 
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The performance returns assume all dividends and capital gains were reinvested in the Fund.

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 S&P 500 and Russell 1000 Indices are unmanaged indices commonly used to measure the performance of U.S. Stocks. The Russell 1000 Index measures the performance of large-cap U.S. stocks. One 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.

Small- and Medium-capitalization companies tend to have limited liquidity and greater price volatility than large-capitalization companies. Investments in foreign securities involve greater volatility and political, economic and currency risk and different accounting methods.

** 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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