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Overview
Hennessy Midstream Fund
Actively managed, the Fund maintains a concentrated portfolio of midstream energy companies and seeks to deliver a significant and predictable income stream.
Why Invest
- Opportunity to invest in core midstream energy companies that should benefit from the growth in production and demand for U.S. energy
- Concentrated, actively managed portfolio
- In-depth, rigorous "boots-on-the-ground" research led by managers with decades of combined energy investing experience
Investment Approach
The Hennessy Midstream Fund invests primarily in core midstream companies that transport, store, and process oil and natural gas. The Portfolio Managers seek companies with lower commodity price exposure, a "demand-pull" bias, and strong balance sheet metrics, with sufficient cash flows to support an attractive yield.
The Portfolio Managers employ a fundamental, “boots-on-the-ground” research-intensive investment process to select holdings, focusing on four key steps:
- Develop commodity forecasts and key sector investment themes
- Identify primary beneficiaries of investment themes
- Value companies on both a relative and absolute basis to uncover potential stock mispricing opportunities
- Size position based on conviction, expected return, volatility, and liquidity
Portfolio Managers
“We believe midstream companies are beneficiaries of the energy transformation taking hold globally.”
- Ben Cook
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Insights & News
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Performance
Daily Pricing & Performance
as of 1/17/25-
Investor Class (HMSFX)
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NAV
$13.83
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$ Change
$0.04
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% Change
0.29%
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YTD
9.07%
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Institutional Class (HMSIX)
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NAV
$14.51
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$ Change
$0.05
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% Change
0.35%
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YTD
9.10%
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Average Annualized Total Return
as of 12/31/24Name 1 Mo YTD 1 yr 3 yr 5 yr 10 yr Since Inception (12/31/13) Investor Class (HMSFX) -6.19% 35.94% 35.94% 29.28% 15.08% 3.96% 4.63% Institutional Class (HMSIX) -6.12% 36.29% 36.29% 29.57% 15.37% 4.22% 4.89% Alerian US Midstream Energy Index -6.91% 50.75% 50.75% 32.52% 20.42% 7.44% 8.18% S&P 500® Index -2.38% 25.02% 25.02% 8.94% 14.53% 13.10% 13.16% as of 12/31/24Name QTR YTD 1 yr 3 yr 5 yr 10 yr Since Inception (12/31/13) Investor Class (HMSFX) 11.92% 35.94% 35.94% 29.28% 15.08% 3.96% 4.63% Institutional Class (HMSIX) 12.05% 36.29% 36.29% 29.57% 15.37% 4.22% 4.89% Alerian US Midstream Energy Index 15.59% 50.75% 50.75% 32.52% 20.42% 7.44% 8.18% S&P 500® Index 2.41% 25.02% 25.02% 8.94% 14.53% 13.10% 13.16% Hypothetical Growth of $10,000
as of 12/31/2024Value of $10,000 invested between 12/31/2023 and 12/31/2024
Midstream Fund (HMSFX) $13,594 Midstream Fund (HMSIX) $13,629 Alerian US Midstream Energy Index $15,075 S&P 500® Index $12,502 Value of $10,000 invested between 12/31/2021 and 12/31/2024
Midstream Fund (HMSFX) $21,608 Midstream Fund (HMSIX) $21,755 Alerian US Midstream Energy Index $23,272 S&P 500® Index $12,929 Value of $10,000 invested between 12/31/2019 and 12/31/2024
Midstream Fund (HMSFX) $20,185 Midstream Fund (HMSIX) $20,440 Alerian US Midstream Energy Index $25,324 S&P 500® Index $19,702 Value of $10,000 invested between 12/31/2014 and 12/31/2024
Midstream Fund (HMSFX) $14,751 Midstream Fund (HMSIX) $15,123 Alerian US Midstream Energy Index $20,489 S&P 500® Index $34,254 Value of $10,000 invested between 12/31/2013 and 12/31/2024
Midstream Fund (HMSFX) $16,454 Midstream Fund (HMSIX) $16,912 Alerian US Midstream Energy Index $23,756 S&P 500® Index $38,943 Calendar Year Total Returns
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Investor Class (HMSFX) -28.17% 21.55% -4.97% -21.20% 11.76% -31.28% 35.93% 28.82% 23.39% 35.94% Institutional Class (HMSIX) -27.98% 21.87% -4.75% -20.96% 11.96% -31.06% 36.29% 29.10% 23.65% 36.29% Alerian US Midstream Energy Index -37.54% 33.80% -5.97% -10.91% 15.56% -24.96% 45.01% 29.56% 19.16% 50.75% S&P 500® Index 1.38% 11.96% 21.83% -4.38% 31.49% 18.40% 28.71% -18.11% 26.29% 25.02% Year Investor Class (HMSFX) Institutional Class (HMSIX) Alerian US Midstream Energy Index S&P 500® Index 2014 11.55% 11.83% 15.95% 13.69% Yield
as of 12/31/24Investor Class (HMSFX) Institutional Class (HMSIX) Distribution Rate 8.06% 7.68% 30-Day SEC Yield 0.00% 0.25% Distribution Frequency Quarterly Quarterly Most Recent Distribution $0.2575 $0.2575 Most Recent Distribution Paid Date 12/02/2024 12/02/2024 Returns-Based Statistics
Relative to Alerian US Midstream Energy Indexas of 12/31/24Investor Class (HMSFX)Type 3 yr 5 yr 10 yr Alpha -1.66 -4.23 -3.08 Beta 0.97 0.98 0.96 Upside Capture 91.87 92.22 88.95 Downside Capture 92.79 102.06 97.26 Institutional Class (HMSIX)Type 3 yr 5 yr 10 yr Alpha -1.41 -3.99 -2.83 Beta 0.97 0.98 0.96 Upside Capture 92.21 92.51 89.33 Downside Capture 92.30 101.72 96.92 Alpha measures the fund’s excess return relative to the return of the benchmark. Beta measures the volatility of the fund compared to that of the benchmark. The beta of the benchmark is 1.00. Capture ratios measure the fund’s overall performance in up markets (positive return periods) and down markets (negative return periods).
Sharpe Ratio
as of 12/31/24Type 3 yr 5 yr 10 yr Investor Class (HMSFX) 1.13 0.52 0.22 Institutional Class (HMSIX) 1.15 0.52 0.23 Alerian US Midstream Energy Index 1.24 0.64 0.34 Energy Limited Partnership Category Average 0.98 0.51 0.20 Sharpe Ratio is a measure of risk-adjusted return, reflecting the average return earned in excess of the risk-free rate per unit of volatility.
Standard Deviation
as of 12/31/24Type 3 yr 5 yr 10 yr Investor Class (HMSFX) 21.03 35.06 28.47 Institutional Class (HMSIX) 20.99 35.10 28.49 Alerian US Midstream Energy Index 21.17 35.55 29.26 Energy Limited Partnership Category Average 19.16 32.01 26.69 Standard deviation is a statistical measure of the historical volatility of a mutual fund or portfolio.
Fund Expenses
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Investor Class (HMSFX)
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Gross expense ratio
2.03%
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Net expense ratio
1.78%
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Institutional Class (HMSIX)
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Gross expense ratio
1.65%
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Net expense ratio
1.53%
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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.
Each Morningstar category average represents a universe of funds with similar objectives. The Morningstar Style Box reveals the fund's investment style as of 12/31/24. The vertical axis shows the market capitalization of the stocks owned and the horizontal axis shows investment style (value, blend, or growth). ©Morningstar, Inc. All Rights Reserved. Past performance is no guarantee of future results.
The Alerian US Midstream Energy Index is comprised of US energy infrastructure companies that earn the majority of their cash flow from midstream activities. The S&P 500® Index is an unmanaged index commonly used to measure the performance of U.S. stocks. One cannot invest directly in an index.
Alerian US Midstream Energy Index is a servicemark of GKD Index Partners, LLC d/b/a Alerian (“Alerian”), and its use is granted under a license from Alerian. Alerian does not permit any party to rely upon and does not accept any liability for any errors, omissions, interruptions, or defects in the Alerian indexes or underlying data.
Standard & Poor’s Financial Services is the source and owner of the S&P® and S&P 500® trademarks.
The performance shown for periods on or prior to 10/26/18 is that of the predecessor BP Capital TwinLine MLP Fund.
Distribution Rate reflects the investment income per share during the last 12 months divided by the share price at the end of the period, expressed as an annual percentage rate. It is calculated by annualizing the Fund’s most recent distribution. The annualized dividend yield may not reflect the actual yield an investor would receive. 30-Day SEC Yield is a standardized yield computed by dividing the net investment income per share earned during the past 30-day period by the share price at the end of the period, expressed as an annual percentage rate. The 30-Day SEC Yield should be regarded as an estimate of the Fund’s rate of recent investment income, and it may not equal the Fund’s actual distribution rate. Past yields are no guarantee of future yields. 30 day SEC Yield subsidized 0.25%; unsubsidized 0.30% as of 12/31/24. Subsidized yields reflect fee waivers in effect.
A significant portion of the Midstream Fund's distributions to shareholders will be characterized as a "return of capital" because of its MLP investments. Please refer to the 19a-1 Notice sent to shareholders or Tax Forms 8937. for additional information regarding the composition of distributions. Final determination of a distribution’s tax character will be made on Form 1099 DIV sent to shareholders each year.
The Fund's investment manager has contractually agreed to limit expenses for the Midstream Fund until 2/28/25. In addition, certain service provider expenses for the Midstream Fund will be voluntarily waived through 7/31/25.
Fund holdings and sector allocations are subject to change and should not be considered a recommendation to buy or sell any security.
References to other funds should not be interpreted as an offer of these securities.
DOE refers to the Department of Energy. EIA refers to the U.S.Energy Information Administration. FERC refers to the Federal Energy Regulatory Commission.
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Portfolio
Portfolio Allocation
as of 12/31/24Allocation % of Net Assets Natural Gas/NGL Transportation 53.9% Gathering and Processing 22.7% Crude Oil and Refined Products 19.2% Cash 4.2% Portfolio Characteristics
as of 12/31/24Inception Date (HMSFX) 12/31/13 Inception Date (HMSIX) 12/31/13 Total Fund Assets $78 Million Active Share vs. Alerian US Midstream Energy Index 32% Portfolio Turnover 6% Median Market Cap $38.9 Billion Median Price/Earnings 21.1x Median Price/Book 3.4x Price/Earnings measures a stock’s price per share compared to earnings. Price/Book measures a stock’s price per share to book value. Portfolio Turnover and Price/Earnings shown reflect the trailing 12-month period.
Sector Weighting
as of 12/31/24Fund Energy 95.8% Cash & Other 4.2% Sub-Industry Weighting % of Net Assets Oil & Gas Storage & Transportation 91.0% Oil & Gas Exploration & Production 4.8% Portfolio Holdings
Top 10 Holdings
as of 12/31/24% of Net Assets Top 10 Holdings Ticker Current Vs. 3Q24 Vs. 4Q23 10-Year Holdings History (%) Time Held Energy Transfer LP ET 14.38% +0.79% -0.28% 6 Years Enterprise Products Partners, LP EPD 10.47% -0.74% -2.27% 11 Years MPLX, LP MPLX 9.63% -0.69% -0.56% 10 Years Plains All American Pipeline, LP PAA 9.24% -1.60% -1.66% 8 Years ONEOK, Inc. OKE 7.60% -0.35% -0.09% 6 Years Antero Midstream Corp. AM 6.56% -0.98% -1.32% 4 Years Williams Companies, Inc. WMB 6.24% +0.17% +0.43% 6 Years Western Midstream Partners LP WES 5.82% -0.86% -0.59% 4 Years EQT Corp. EQT 4.83% +0.40% +4.83% < 1 Year Kinder Morgan, Inc. KMI 4.35% +0.30% +0.29% 9 Years Total as % of Net Assets 79.12% Total Holdings: 17
as of 12/31/24% of Net Assets Equity Holdings Current Vs. 3Q24 Vs. 4Q23 10-Year Holdings History (%) Time Held Energy Transfer LP 14.38% +0.79% -0.28% 6 Years Enterprise Products Partners, LP 10.47% -0.74% -2.27% 11 Years MPLX, LP 9.63% -0.69% -0.56% 10 Years Plains All American Pipeline, LP 9.24% -1.60% -1.66% 8 Years ONEOK, Inc. 7.60% -0.35% -0.09% 6 Years Antero Midstream Corp. 6.56% -0.98% -1.32% 4 Years Williams Companies, Inc. 6.24% +0.17% +0.43% 6 Years Western Midstream Partners LP 5.82% -0.86% -0.59% 4 Years EQT Corp. 4.83% +0.40% +4.83% < 1 Year Kinder Morgan, Inc. 4.35% +0.30% +0.29% 9 Years Cheniere Energy, Inc. 4.17% +0.14% +4.17% < 1 Year Targa Resources Corp. 3.56% +0.16% +1.05% 9 Years TC Energy Corp. 3.50% -0.63% -0.76% 1 Year DT Midstream, Inc. 2.47% +0.22% +0.50% 3 Years EnLink Midstream, LLC 1.93% -0.36% -0.48% 3 Years Cheniere Energy Partners, LP 0.72% -0.05% -0.12% 1 Year South Bow Corp. 0.35% +0.35% +0.35% < 1 Year Total as % of Net Assets 95.8% Cash & Other Holdings % of Net Assets Cash & Other 4.2% Total as % of Net Assets 4.2% Country Allocation
as of 12/31/24-
United States
92.0%
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International
3.9%
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Cash & Other
4.2%
United States 92.0% Canada 3.9% Cash & Other 4.2% -
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Distributions
The Hennessy Midstream Fund pays capital gains (if any) once annually, usually in December. Ordinary income distributions are paid quarterly, at the beginning of March, June, September, and December.
Date Paid Income Short-Term Gain Long-Term Gain Total Per Share Reinvest Price 12/02/2024 $0.25750 -- -- $0.25750 $13.22 09/03/2024 $0.25750 -- -- $0.25750 $11.41 06/03/2024 $0.25750 -- -- $0.25750 $10.98 03/01/2024 $0.25750 -- -- $0.25750 $10.78 12/01/2023 $0.25750 -- -- $0.25750 $10.45 09/01/2023 $0.25750 -- -- $0.25750 $10.12 06/01/2023 $0.25750 -- -- $0.25750 $9.15 03/01/2023 $0.25750 -- -- $0.25750 $9.24 12/01/2022 $0.25750 -- -- $0.25750 $9.60 09/01/2022 $0.25750 -- -- $0.25750 $9.23 06/01/2022 $0.25750 -- -- $0.25750 $9.84 03/01/2022 $0.25750 -- -- $0.25750 $9.01 12/01/2021 $0.25750 -- -- $0.25750 $7.71 09/01/2021 $0.25750 -- -- $0.25750 $7.96 06/01/2021 $0.25750 -- -- $0.25750 $8.59 03/01/2021 $0.25750 -- -- $0.25750 $7.51 12/01/2020 $0.25750 -- -- $0.25750 $6.49 09/01/2020 $0.25750 -- -- $0.25750 $6.13 06/01/2020 $0.25750 -- -- $0.25750 $7.26 03/02/2020 $0.25750 -- -- $0.25750 $9.36 12/02/2019 $0.25750 -- -- $0.25750 $10.24 09/03/2019 $0.25750 -- -- $0.25750 $11.24 06/03/2019 $0.25750 -- -- $0.25750 $11.96 03/01/2019 $0.25750 -- -- $0.25750 $12.39 12/03/2018 $0.25750 -- -- $0.25750 $12.55 9/4/2018 $0.25750 -- -- $0.25750 $13.95 6/1/2018 $0.25750 -- -- $0.25750 $13.74 3/1/2018 $0.25750 -- -- $0.25750 $13.87 12/1/2017 $0.25750 -- -- $0.25750 $14.46 9/1/2017 $0.25750 -- -- $0.25750 $15.10 6/1/2017 $0.25750 -- -- $0.25750 $15.94 3/1/2017 $0.25750 -- -- $0.25750 $17.06 12/1/2016 $0.25750 -- -- $0.25750 $16.01 9/1/2016 $0.25750 -- -- $0.25750 $16.20 6/1/2016 $0.25750 -- -- $0.25750 $15.72 3/1/2016 $0.25750 -- -- $0.25750 $12.81 12/1/2015 $0.25750 -- -- $0.25750 $14.93 9/1/2015 $0.25750 -- -- $0.25750 $17.86 6/1/2015 $0.25750 -- -- $0.25750 $21.68 3/2/2015 $0.24000 -- -- $0.24000 $21.64 12/1/2014 $0.24000 -- -- $0.24000 $21.39 9/2/2014 $0.24000 -- -- $0.24000 $22.99 6/2/2014 $0.08426 -- -- $0.08426 $22.15 3/3/2014 $0.09566 -- -- $0.09566 $20.49 Past performance is not a guarantee of future results.
A significant portion of the Midstream Fund's distributions to shareholders will be characterized as a "return of capital" because of its MLP investments. Please refer to the 19a-1 Notice sent to shareholders or Tax Forms 8937. for additional information regarding the composition of distributions. Final determination of a distribution’s tax character will be made on Form 1099 DIV sent to shareholders each year.Download historical distributions and NAVsDate Paid Income Short-Term Gain Long-Term Gain Total Per Share Reinvest Price 12/02/2024 $0.25750 -- -- $0.25750 $13.85 09/03/2024 $0.25750 -- -- $0.25750 $11.95 06/03/2024 $0.25750 -- -- $0.25750 $11.48 03/01/2024 $0.25750 -- -- $0.25750 $11.25 12/01/2023 $0.25750 -- -- $0.25750 $10.89 09/01/2023 $0.25750 -- -- $0.25750 $10.53 06/01/2023 $0.25750 -- -- $0.25750 $9.50 03/01/2023 $0.25750 -- -- $0.25750 $9.58 12/01/2022 $0.25750 -- -- $0.25750 $9.93 09/01/2022 $0.25750 -- -- $0.25750 $9.54 06/01/2022 $0.25750 -- -- $0.25750 $10.16 03/01/2022 $0.25750 -- -- $0.25750 $9.29 12/01/2021 $0.25750 -- -- $0.25750 $7.93 09/01/2021 $0.25750 -- -- $0.25750 $8.18 06/01/2021 $0.25750 -- -- $0.25750 $8.82 03/01/2021 $0.25750 -- -- $0.25750 $7.70 12/01/2020 $0.25750 -- -- $0.25750 $6.64 09/01/2020 $0.25750 -- -- $0.25750 $6.26 06/01/2020 $0.25750 -- -- $0.25750 $7.41 03/02/2020 $0.25750 -- -- $0.25750 $9.54 12/02/2019 $0.25750 -- -- $0.25750 $10.42 09/03/2019 $0.25750 -- -- $0.25750 $11.43 06/03/2019 $0.25750 -- -- $0.25750 $12.15 03/01/2019 $0.25750 -- -- $0.25750 $12.58 12/03/2018 $0.25750 -- -- $0.25750 $12.73 9/4/2018 $0.25750 -- -- $0.25750 $14.13 6/1/2018 $0.25750 -- -- $0.25750 $13.91 3/1/2018 $0.25750 -- -- $0.25750 $14.03 12/1/2017 $0.25750 -- -- $0.25750 $14.62 9/1/2017 $0.25750 -- -- $0.25750 $15.25 6/1/2017 $0.25750 -- -- $0.25750 $16.09 3/1/2017 $0.25750 -- -- $0.25750 $17.21 12/1/2016 $0.25750 -- -- $0.25750 $16.13 9/1/2016 $0.25750 -- -- $0.25750 $16.32 6/1/2016 $0.25750 -- -- $0.25750 $15.82 3/1/2016 $0.25750 -- -- $0.25750 $12.88 12/1/2015 $0.25750 -- -- $0.25750 $15.00 9/1/2015 $0.25750 -- -- $0.25750 $17.92 6/1/2015 $0.25750 -- -- $0.25750 $21.74 3/2/2015 $0.24000 -- -- $0.24000 $21.69 12/1/2014 $0.24000 -- -- $0.24000 $21.42 9/2/2014 $0.24000 -- -- $0.24000 $23.01 6/2/2014 $0.08787 -- -- $0.08787 $22.15 3/3/2014 $0.10726 -- -- $0.10726 $20.49 Past performance is not a guarantee of future results.
A significant portion of the Midstream Fund's distributions to shareholders will be characterized as a "return of capital" because of its MLP investments. Please refer to the 19a-1 Notice sent to shareholders or Tax Forms 8937. for additional information regarding the composition of distributions. Final determination of a distribution’s tax character will be made on Form 1099 DIV sent to shareholders each year.Download historical distributions and NAVs -
Fund Documents
After July 24, 2024, shareholder reports will be sent by mail unless a shareholder has elected or elects to receive reports electronically via e-delivery. To sign up for e-delivery, please visit My Account. https://www.hennessyfunds.com/account or by calling U.S. Bank Global Fund Services at 1-800-261-6950 or, if you own shares through a financial intermediary, by contacting your financial intermediary.
