Hennessy Total Return Fund
Investor
HDOGX
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  • Overview

    Category
    Multi-Asset

    Hennessy Total Return Fund

    Quantitatively managed, the Fund maintains a portfolio of 75% of high yield, blue-chip companies and 25% U.S. Treasury securities.

    Investor

    HDOGX

    Documents

    Morningstar style box

    Morningstar style box
    Portfolio Manager Commentary
    Portfolio Manager Commentary

    Why Invest

    • Multi-asset fund with broad equity market exposure, but potentially lower volatility
    • Incorporates the contrarian "Dogs of the Dow" strategy
    • Focus on high dividend-yielding, potentially undervalued blue chip companies

    Investment Criteria

    The Hennessy Total Return Fund utilizes the "Dogs of the Dow" strategy, investing in the 10 highest dividend-yielding Dow Jones Industrial Average (“DJIA”) stocks. The Fund invests approximately 50% of its assets in the “Dogs of the Dow” equity strategy and approximately 50% of its assets in U.S. Treasury securities with a maturity of less than one year.

    The Fund then utilizes a borrowing strategy that allows the Fund’s performance to approximate what it would be if the Fund had an asset allocation of roughly 75% in the "Dogs of the Dow" equity strategy and 25% in U.S. Treasury securities. The Fund typically borrows money by entering into reverse repurchase agreements secured by its portfolio of U.S. Treasury securities.

    Portfolio Managers

    • Neil J. Hennessy

      Neil J. Hennessy

      Chief Market Strategist and Portfolio Manager
      • 25
        Years on Fund
      • 44
        Years of Experience
    • Ryan C. Kelley

      Ryan C. Kelley, CFA

      Chief Investment Officer and Portfolio Manager
      • 7
        Years on Fund
      • 28
        Years of Experience
    • L. Joshua Wein, CAIA

      L. Joshua Wein, CAIA

      Portfolio Manager
      • 5
        Years on Fund
      • 27
        Years of Experience

    “I believe success can come from taking a contrarian approach to investing.”

    - Neil Hennessy

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  • Insights & News

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  • Performance

    Daily Pricing & Performance

    as of 4/18/24
    • Investor Class (HDOGX)

      • NAV

        $12.92

      • $ Change

        $0.02

      • % Change

        0.16%

      • YTD

        -0.88%

    Average Annualized Total Return

    as of 3/31/24
    Name 1 Mo YTD 1 yr 3 yr 5 yr 10 yr Since Inception (7/29/98)
    Investor Class (HDOGX) 2.97% 2.42% 10.47% 4.74% 4.47% 5.94% 5.07%
    75/25 Blended DJIA/Treasury Index 1.77% 4.91% 17.89% 7.36% 9.25% 9.31% 7.05%
    Dow Jones Industrial Avg. 2.21% 6.14% 22.18% 8.65% 11.31% 11.76% 8.47%

    Please swipe to view table

    as of 3/31/24
    Name QTR YTD 1 yr 3 yr 5 yr 10 yr Since Inception (7/29/98)
    Investor Class (HDOGX) 2.42% 2.42% 10.47% 4.74% 4.47% 5.94% 5.07%
    75/25 Blended DJIA/Treasury Index 4.91% 4.91% 17.89% 7.36% 9.25% 9.31% 7.05%
    Dow Jones Industrial Avg. 6.14% 6.14% 22.18% 8.65% 11.31% 11.76% 8.47%

    Please swipe to view table

    Hypothetical Growth of $10,000

    as of 3/31/2024

    Value of $10,000 invested between 3/31/2023 and 3/31/2024
    Total Return Fund (HDOGX) $11,047
    75/25 Blended DJIA/Treasury Index $11,789
    Dow Jones Industrial Avg. $12,218

    Value of $10,000 invested between 3/31/2021 and 3/31/2024
    Total Return Fund (HDOGX) $11,490
    75/25 Blended DJIA/Treasury Index $12,376
    Dow Jones Industrial Avg. $12,827

    Value of $10,000 invested between 3/31/2019 and 3/31/2024
    Total Return Fund (HDOGX) $12,443
    75/25 Blended DJIA/Treasury Index $16,139
    Dow Jones Industrial Avg. $17,086

    Value of $10,000 invested between 3/31/2014 and 3/31/2024
    Total Return Fund (HDOGX) $17,815
    75/25 Blended DJIA/Treasury Index $25,251
    Dow Jones Industrial Avg. $30,393

    Value of $10,000 invested between 7/29/1998 and 3/31/2024
    Total Return Fund (HDOGX) $35,608
    75/25 Blended DJIA/Treasury Index $59,645
    Dow Jones Industrial Avg. $80,604

    This data illustrates the performance of a hypothetical $10,000 investment made in the Fund for the period noted, and it assumes reinvestment of dividends and capital gains. This chart does not imply future performance.

    Calendar Year Total Returns

      2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
    Investor Class (HDOGX)    		 5.85% 1.00% 12.92% 11.17% 0.11% 12.56% -4.83% 11.81% 1.39% 8.02%
    75/25 Blended DJIA/Treasury Index    		 7.53% 0.33% 12.36% 20.76% -1.97% 19.34% 8.10% 15.52% -4.43% 13.49%
    Dow Jones Industrial Avg.    		 10.04% 0.21% 16.50% 28.11% -3.48% 25.34% 9.72% 20.95% -6.86% 16.18%
    Year
    Investor Class (HDOGX)
    75/25 Blended DJIA/Treasury Index
    Dow Jones Industrial Avg.
    2013 18.52% 21.67% 29.65%
    2012 6.77% 7.71% 10.24%
    2011 10.81% 6.43% 8.38%
    2010 14.09% 10.70% 14.06%
    2009 16.92% 17.17% 22.68%
    2008 -31.76% -24.34% -31.93%
    2007 2.03% 8.00% 8.88%
    2006 21.83% 15.36% 19.05%
    2005 -0.11% 2.13% 1.72%
    2004 2.34% 4.35% 5.31%
    2003 22.57% 21.07% 28.28%
    2002 -8.69% -10.70% -15.01%
    2001 -0.25% -2.71% -5.44%
    2000 6.86% -1.96% -4.85%
    1999 1.80% 21.44% 27.21%

    Please swipe to view table

    Yield

    as of 3/31/24
    Investor Class (HDOGX)
    Dividend Yield 3.25%
    30-Day SEC Yield 0.81%
    Distribution Frequency Quarterly

    Please swipe to view table

    Returns-Based Statistics
    Relative to Dow Jones Industrial Avg.

    as of 3/31/24
    Investor Class (HDOGX)
    Type 3 yr 5 yr 10 yr
    Alpha -1.93 -3.51 -1.87
    Beta 0.65 0.64 0.62
    Upside Capture 62.77 58.60 59.18
    Downside Capture 66.89 69.39 65.72

    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 3/31/24
    Type 3 yr 5 yr 10 yr
    Investor Class (HDOGX) 0.20 0.24 0.46
    Dow Jones Industrial Avg. 0.41 0.56 0.72
    Moderate Allocation Category Average 0.15 0.47 0.50

    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 3/31/24
    Type 3 yr 5 yr 10 yr
    Investor Class (HDOGX) 11.96 12.91 10.54
    Dow Jones Industrial Avg. 16.44 18.17 15.11
    Moderate Allocation Category Average 11.41 12.11 9.90

    Standard deviation is a statistical measure of the historical volatility of a mutual fund or portfolio.

    Fund Expenses

    • Investor Class (HDOGX)

      • Gross expense ratio

        3.37%

    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 3/31/24. 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 75/25 Blended DJIA/Treasury Index consists of 75% common stocks represented by the Dow Jones Industrial Average and 25% short-duration Treasury securities represented by the ICE BofA Merrill Lynch U.S. 3-Month Treasury Bill Index.

    The Dow Jones Industrial Average is an unmanaged index commonly used to measure the performance of U.S. stocks. The ICE BofA Merrill Lynch 90-day U.S. Treasury Bill Index is an unmanaged index comprised of U.S. Treasury securities maturing in 90 days. One cannot invest directly in an index.

    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, Inc. has not participated in any way in the creation of the Hennessy Funds or in the selection of stocks included in the Hennessy Funds and has not approved any information provided.

    Dividend Yield is a financial ratio that indicates how much a company pays out in dividends each year relative to its share price. 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.

    Fund holdings and sector allocations are subject to change and should not be considered a recommendation to buy or sell any security.

  • Portfolio

    Portfolio Allocation

    as of 3/31/24
    Allocation % of Net Assets
    Equities 70.10%
    Fixed Income 26.90%
    Cash & Other 3.00%

    Portfolio Characteristics

    as of 3/31/24
    Inception Date (HDOGX) 7/29/98
    Total Fund Assets $51 Million
    Portfolio Turnover 30%
    Median Market Cap $175.1 Billion
    Median Price/Earnings 18.1x
    Median Price/Book 4.4x

    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.

    Equity Sector Weighting

    as of 3/31/24
    Fund
    Consumer Staples 13.3%
    Health Care 12.2%
    Information Technology 11.3%
    Materials 7.4%
    Industrials 7.3%
    Communication Services 7.2%
    Energy 7.0%
    Financials 4.5%

    Portfolio Holdings

    Top 10 Holdings

    as of 3/31/24
    Top 10 Equity Holdings Ticker % of Net Assets
    IBM Corp. IBM 7.5%
    Dow, Inc. DOW 7.4%
    3M Co. MMM 7.3%
    Verizon Communications, Inc. VZ 7.2%
    Chevron Corp. CVX 7.0%
    The Coca-Cola Company KO 6.9%
    Walgreens Boots Alliance, Inc. WBA 6.4%
    Amgen AMGN 6.3%
    Johnson & Johnson JNJ 5.9%
    Goldman Sachs Group, Inc. GS 4.5%
    Total as % of Net Assets 66.3%

    Please swipe to view table

    Total Equity Holdings: 11
    Total Fixed-Income Holdings: 3

    as of 3/31/24
    Print All Holdings
    Equity Holdings Ticker % of Net Assets
    IBM Corp. IBM 7.5%
    Dow, Inc. DOW 7.4%
    3M Co. MMM 7.3%
    Verizon Communications, Inc. VZ 7.2%
    Chevron Corp. CVX 7.0%
    The Coca-Cola Company KO 6.9%
    Walgreens Boots Alliance, Inc. WBA 6.4%
    Amgen AMGN 6.3%
    Johnson & Johnson JNJ 5.9%
    Goldman Sachs Group, Inc. GS 4.5%
    Cisco Systems, Inc. CSCO 3.8%
    Total as % of Net Assets 70.1%
    Fixed Income Holdings Ticker % of Net Assets
    U.S. Treasury Bill - (05/09/24) 912797HQ3 6.7%
    U.S. Treasury Bill - (04/11/24) 912797HF7 11.3%
    U.S. Treasury Bill - (06/13/24) 912797FS1 8.9%
    Total as % of Net Assets 26.9%
    Cash & Other Holdings % of Net Assets
    Cash & Other 3.0%
    Total as % of Net Assets 3.0%

    Please swipe to view table

    Country Allocation

    as of 3/31/24

    • United States

      97.0%

    • Cash & Other

      3.0%
    United States 97.0%
    Cash & Other 3.0%

  • Distributions

    The Hennessy Total Return Fund  pays capital gains (if any) once annually, usually in December. Ordinary income distributions are paid quarterly, at the end of March, June, September, and December.

    Date Paid Income Short-Term Gain Long-Term Gain Total Per Share Reinvest Price
    03/28/2024 $0.10828 -- -- $0.10828 $13.35
    12/27/2023 $0.11738 -- -- $0.11738 $13.16
    12/07/2023 -- -- $0.53706 $0.53706 $12.72
    09/29/2023 $0.10665 -- -- $0.10665 $12.70
    06/30/2023 $0.10143 -- -- $0.10143 $12.82
    03/31/2023 $0.12958 -- -- $0.12958 $13.02
    12/28/2022 $0.04217 -- -- $0.04217 $13.05
    12/08/2022 -- -- $0.65896 $0.65896 $13.34
    09/30/2022 $0.06682 -- -- $0.06682 $12.27
    06/30/2022 $0.05066 -- -- $0.05066 $13.46
    03/31/2022 $0.08285 -- -- $0.08285 $14.04
    12/29/2021 $0.01733 -- -- $0.01733 $13.88
    09/30/2021 $0.04625 -- -- $0.04625 $13.28
    06/30/2021 $0.04384 -- -- $0.04384 $13.75
    03/31/2021 $0.07976 -- -- $0.07976 $13.62
    12/29/2020 $0.03323 -- -- $0.03323 $12.47
    12/08/2020 -- -- $0.76126 $0.76126 $12.72
    09/30/2020 $0.06840 -- -- $0.06840 $12.32
    06/30/2020 $0.07312 -- -- $0.07312 $12.49
    03/31/2020 $0.10427 -- -- $0.10427 $11.64
    12/27/2019 $0.04232 -- -- $0.04232 $14.32
    09/30/2019 $0.05615 -- -- $0.05615 $13.94
    06/28/2019 $0.06631 -- -- $0.06631 $13.97
    03/29/2019 $0.08168 -- -- $0.08168 $13.88
    12/27/2018 $0.03292 -- -- $0.03292 $12.88
    12/07/2018 -- -- $0.39762 $0.39762 $13.32
    09/28/2018 $0.06221 -- -- $0.06221 $13.86
    06/29/2018 $0.06279 -- -- $0.06279 $13.27
    03/29/2018 $0.07896 -- -- $0.07896 $13.04
    12/27/2017 $0.02860 -- -- $0.02860 $13.56
    12/07/2017 -- $0.13247 $1.38773 $1.52020 $13.34
    09/29/2017 $0.05802 -- -- $0.05802 $14.58
    06/30/2017 $0.05106 -- -- $0.05106 $13.90
    03/31/2017 $0.07003 -- -- $0.07003 $13.88
    12/28/2016 $0.01803 -- -- $0.01803 $13.79
    12/07/2016 -- $0.00673 $0.64969 $0.65642 $13.70
    09/30/2016 $0.03265 -- -- $0.03265 $14.15
    06/30/2016 $0.04075 -- -- $0.04075 $13.97
    03/31/2016 $0.07024 -- -- $0.07024 $13.46
    12/29/2015 $0.02283 -- -- $0.02283 $13.07
    12/09/2015 -- $0.01840 $1.20995 $1.22835 $12.80
    09/30/2015 $0.05081 -- -- $0.05081 $13.25
    06/30/2015 $0.05380 -- -- $0.05380 $14.03
    03/31/2015 $0.07628 -- -- $0.07628 $14.14
    12/31/2014 $0.02266 -- -- $0.02266 $14.24
    12/08/2014 -- -- $1.05659 $1.05659 $14.38
    09/30/2014 $0.04860 -- -- $0.04860 $15.30
    06/30/2014 $0.04954 -- -- $0.04954 $15.10
    03/31/2014 $0.07237 -- -- $0.07237 $14.75
    12/31/2013 $0.01962 -- -- $0.01962 $14.63
    09/30/2013 $0.03625 -- -- $0.03625 $13.87
    06/28/2013 $0.03993 -- -- $0.03993 $13.89
    03/28/2013 $0.06745 -- -- $0.06745 $13.56
    12/31/2012 $0.01798 -- -- $0.01798 $12.49
    09/28/2012 $0.03703 -- -- $0.03703 $12.88
    06/29/2012 $0.04694 -- -- $0.04694 $12.48
    03/30/2012 $0.06978 -- -- $0.06978 $12.23
    12/27/2011 $0.02291 -- -- $0.02291 $11.90
    09/30/2011 $0.04224 -- -- $0.04224 $10.85
    06/30/2011 $0.04576 -- -- $0.04576 $11.49
    03/31/2011 $0.06437 -- -- $0.06437 $11.21
    12/30/2010 $0.02175 -- -- $0.02175 $10.86
    09/30/2010 $0.03750 -- -- $0.03750 $10.40
    06/30/2010 $0.01776 -- -- $0.01776 $9.34
    03/31/2010 $0.09361 -- -- $0.09361 $9.95
    12/29/2009 $0.01659 -- -- $0.01659 $9.78
    09/30/2009 $0.03863 -- -- $0.03863 $9.17
    06/30/2009 $0.03741 -- -- $0.03741 $8.00
    03/31/2009 $0.05538 -- -- $0.05538 $7.25
    12/30/2008 $0.02894 -- -- $0.02894 $8.35
    09/30/2008 $0.08635 -- -- $0.08635 $10.38
    06/30/2008 $0.07602 -- -- $0.07602 $10.31
    03/31/2008 $0.08600 -- -- $0.08600 $11.66
    12/28/2007 $0.05863 -- -- $0.05863 $12.78
    09/28/2007 $0.08189 -- -- $0.08189 $13.49
    06/29/2007 $0.08714 -- -- $0.08714 $13.48
    03/30/2007 $0.09930 -- -- $0.09930 $12.80
    12/28/2006 $0.06809 -- -- $0.06809 $12.79
    09/29/2006 $0.07243 -- -- $0.07243 $12.33
    06/30/2006 $0.06475 -- -- $0.06475 $11.44
    03/31/2006 $0.09246 -- -- $0.09246 $11.11
    12/22/2005 $0.07109 -- -- $0.07109 $10.83
    09/29/2005 $0.07024 -- -- $0.07024 $10.61
    06/30/2005 $0.05559 -- -- $0.05559 $10.73
    03/31/2005 $0.08885 -- -- $0.08885 $10.84
    12/22/2004 $0.01631 -- -- $0.01631 $11.08
    09/29/2004 $0.05008 -- -- $0.05008 $10.54
    06/29/2004 $0.05540 -- -- $0.05540 $10.61
    03/30/2004 $0.01836 -- -- $0.01836 $10.87
    12/23/2003 $0.02660 -- -- $0.02660 $10.78
    09/29/2003 $0.02395 -- -- $0.02395 $9.77
    06/30/2003 $0.04490 -- -- $0.04490 $9.65
    03/28/2003 $0.02573 -- -- $0.02573 $8.66
    12/23/2002 $0.02789 -- -- $0.02789 $9.14
    09/25/2002 $0.01919 -- -- $0.01919 $8.27
    06/27/2002 $0.02956 -- -- $0.02956 $9.68
    03/28/2002 $0.00730 -- -- $0.00730 $10.52
    12/14/2001 $0.02900 -- -- $0.02900 $9.80
    09/28/2001 $0.04200 -- -- $0.04200 $9.62
    06/28/2001 $0.04000 -- -- $0.04000 $10.42
    03/30/2001 $0.06200 -- -- $0.06200 $9.90
    12/29/2000 $0.06700 -- -- $0.06700 $10.18
    09/29/2000 $0.06800 -- -- $0.06800 $9.10
    06/29/2000 $0.07000 -- -- $0.07000 $8.80
    03/30/2000 $0.05900 -- -- $0.05900 $9.20
    12/06/1999 $0.04800 -- -- $0.04800 $9.95
    09/29/1999 $0.04700 -- -- $0.04700 $10.07
    06/29/1999 $0.07700 -- -- $0.07700 $10.66
    03/30/1999 $0.07200 -- -- $0.07200 $9.84
    12/16/1998 $0.09500 -- -- $0.09500 $9.78
    09/29/1998 $0.06100 -- -- $0.06100 $10.03

    Please swipe to view table

    Past performance is not a guarantee of future results.

    Download historical distributions and NAVs

  • Fund Documents

    Download PDF View Online
    Total Return Fund Documents
    Fact Sheet
    Portfolio Perspective View
    Summary Prospectus
    Full Prospectus
    Statement of Additional Information
    Total Return Fund Shareholder Reports and Quarterly Holdings
    Q1 Holdings
    Semi-Annual Report
    Q3 Holdings
    Annual Report

    Currently, paper copies of the annual and semi-annual reports are not sent by mail unless shareholders specifically request paper copies. You may elect to receive paper copies free of charge 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.

    **Please note the upcoming change to shareholder report delivery.**

    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.

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Hennessy Funds
7250 Redwood Boulevard, Suite 200
 Novato, CA 94945
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The Funds' investment objectives, risks, charges, and expenses must be considered carefully before investing. The prospectus contains this and other important information about the investment company. Please read it carefully before investing. A hard copy of the prospectus can be requested by calling 1-800-966-4354.

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 and can be found here. Performance data current to the most recent month end may be obtained from HennessyFunds.com Hennessy Funds Standardized Performance

Neither forward earnings nor earnings growth is a measure of a fund’s future performance.

Mutual fund investing involves risk. Principal loss is possible. Current and future holdings are subject to risk. Small and medium-sized companies may have more limited liquidity and greater price volatility than larger companies. Investments in foreign securities may involve political, economic, and currency risks, greater volatility, and differences in accounting methods. The Focus, Total Return, Balanced, Large Cap Financial, Small Cap Financial, and Midstream Funds are considered non-diversified funds. A non-diversified fund, which may concentrate its assets in fewer individual holdings than a diversified fund, is more exposed to individual stock volatility than a diversified fund. A fund that concentrates its investments within one country, one sector, or a small group of industries, such as Japan, Technology, Financials, or Energy, may be subject to a higher degree of market risk. Investments in debt securities typically decrease in value when interest rates rise. The risk is greater for longer-term debt securities. Investments in lower-rated and non-rated securities present a greater risk of loss to principal and interest than higher-rated securities. Mortgage- and asset-backed securities are subject to prepayment risk, which is the risk that the borrower will prepay some or all of the principal owed to the issuer. Funds that invest in pooled investment vehicles (including ETFs) may experience higher fees. The formula-based strategy employed by some Funds may cause those Funds to buy or sell securities at times when it may not be advantageous.

ETFs are subject to additional risks that do not apply to conventional mutual funds, including the risks that the market price of an ETF’s shares may trade at a premium or discount to its net asset value, an active secondary trading market may not develop or be maintained, or trading may be halted by the exchange in which they trade, which may impact a Fund’s ability to sell its shares. Shares of any ETF are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns.

ESG investing risk is the risk stemming from the Environmental, Social, and Governance factors that the Fund applies in selecting securities. The Fund intends to invest in companies with measurable high ESG ratings relative to their sector peers, and screen out particular companies that do not meet its ESG criteria. This may affect the Fund’s exposure to certain companies or industries and cause the Fund to forego certain investment opportunities. The Fund’s returns may be lower than other funds that do not seek to invest in companies based on ESG ratings. The Fund seeks to pursue its investment objective by using proprietary models that incorporate quantitative analysis. There is no guarantee that the Portfolio Managers’ use of these models will result in effective investment decisions for the Fund. From time to time, the Fund may concentrate its investments in one or more industry sectors. The Fund is currently substantially invested in the Consumer Discretionary and Health Care sectors and its performance is therefore tied closely to, and affected by, developments in these industries.

Master Limited Partnerships (MLPs) and MLP investments have unique characteristics. A Fund does not receive the same tax benefits as a direct investment in an MLP.

The prices of MLP units may fluctuate abruptly and trading volume may be low, making it difficult for a Fund to sell its units at a favorable price. MLP general partners have the power to take actions that adversely affect the interests of unit holders. Most MLPs do not pay U.S. federal income tax at the partnership level, but an adverse change in tax laws could result in MLPs being treated as corporations for federal income tax purposes, which could reduce or eliminate distributions paid by MLPs to the Fund. If the Energy Transition Fund’s MLP investments exceed 25% of its assets, it may not qualify for treatment as a regulated investment company (“RIC”) under the Internal Revenue Code (“Code”), and the Fund would be taxed as an ordinary corporation, which could substantially reduce its net assets and its distributions to shareholders. The Midstream Fund is treated as a regular corporation, or “C” corporation, for U.S. federal income tax purposes, and therefore, is subject to U.S. federal income tax on its taxable income at the graduated rates applicable to corporations (currently a maximum rate of 21%) as well as state and local income taxes. The Midstream Fund will not benefit from current favorable federal income tax rates on long-term capital gains, and Fund income and losses will not be passed on to shareholders. The Midstream Fund accrues deferred income taxes for future tax liabilities associated with the portion of MLP distributions considered to be a tax-deferred return of capital and for any net operating gains as well as capital appreciation of its investments. This deferred tax liability is reflected in the daily NAV, and as a result, the Fund’s after-tax performance could differ significantly from the underlying assets even if the pre-tax performance is closely tracked.

Glossary of Terms contains definitions and additional information.

To view the top 10 holdings of a Fund, please click the Fund name: Cornerstone Growth, Focus, Cornerstone Mid Cap 30, Cornerstone Large Growth, Cornerstone Value, Total Return, Equity and Income, Balanced, Energy Transition, Midstream, Gas Utility, Japan, Japan Small Cap, Large Cap Financial, Small Cap Financial, Technology. Fund holdings are subject to change and not recommendations to buy or sell any security.

Opinions expressed are subject to change at any time, are not guaranteed, and should not be considered investment advice.

News and Media Page:

To view the Morningstar ratings for the Japan Fund, please click here. (Media - TD Ameritrade)

To view the Morningstar ratings for the Focus Fund, please click here. (Media - CNBC-B. Macualey).

1 USD = 105.36 Yen as of 07/27/2020 (Media - Ticker - M. Takeda)

Tom White is a TD Ameritrade Network contributor and is not affiliated with the Hennessy Funds. Content is not investment advice, or a recommendation of any security, strategy, or account type. Options involve risks and are not suitable for all investors as the special risks inherent to options trading may expose investors to potentially rapid and substantial losses.(Media - TD Ameritrade-Rothberg)

To view the Morningstar ratings, please click here.

The Hennessy Funds are offered only to United States residents, and information on this web site is intended only for such persons. Nothing on this web site should be considered a solicitation to buy or an offer to sell shares of any Hennessy Fund in any jurisdiction where the offer or solicitation would be unlawful under the securities laws of such jurisdiction.

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