Glossary of Terms

# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z 

Alphabetical Listing of Definitions & Index Information

#

10-year Treasury note is a debt obligation issued by the United States government with a maturity of 10 years upon initial issuance. 

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.

50/50 Blended DJIA/Treasury Index consists of 50% common stocks represented by the Dow Jones Industrial Average and 50% short-duration Treasury securities represented by the BofA Merrill Lynch 1-Year U.S. Treasury Note Index. One cannot invest directly in an index.

60/40 Blended Balanced Index consists of 60% common stocks represented by the S&P 500® Index and 40% bonds represented by the Bloomberg Capital Intermediate U.S. Government/Credit Index. One cannot invest directly in an index.

70/30 Blended Balanced Index consists of 70% common stocks represented by the S&P 500® Index and 30% bonds represented by the Bloomberg Capital Intermediate U.S. Government/Credit Index. One cannot invest directly in an index.

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 BofA Merrill Lynch 90-day U.S. Treasury Bill Index. One cannot invest directly in an index.

A

Active Share is a measure of the percentage of stock holdings in a manager's portfolio that differ from the benchmark index. 

Active Weight is the difference in allocation of an individual security or portfolio segment between the portfolio and the benchmark.

Adjusted Funds From Operations (AFFO) is a financial performance measure primarily used in the analysis of real-estate income trusts which is generally equal to the trust's funds from operations (FFO) with adjustments made for recurring capital expenditures used to maintain the quality of the REIT's underlying assets.

Alerian MLP Index is an index of prominent energy Master Limited Partnerships (MLPs) and is commonly used to measure the performance of the MLP asset class. One cannot invest directly in an index.

Alerian US Midstream Energy Index is comprised of US energy infrastructure companies that earn the majority of their cash flow from midstream activities. 

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.

Alpha is an annualized return measure of how much better or worse a fund’s performance is relative to an index of funds in the same category, after allowing for differences in risk.

American Gas Association Index / AGA is a market capitalization-weighted index, adjusted monthly, consisting of member companies of the American Gas Association. One cannot invest directly in an index. 

Arithmetic Average Dividend Yield is calculated as the sum of all dividend yields divided by the count of that series of numbers. 
 

B

Basis Point is a unit that is equal to 1/100th of 1% and is used to denote the change in a financial instrument. 

Bank of America / 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.

Bank of America / BofA Merrill Lynch 1-Year U.S. Treasury Note Index is an unmanaged index comprised of U.S. Treasury securities maturing in approximately one year. One cannot invest directly in an index.

BBG Europe DM Small Cap Index is a market-cap-weighted equity benchmark that covers the 85-99% percentile market cap of the European developed markets.

Bloomberg Intermediate U.S. Government/Credit Index is an unmanaged index commonly used to measure the performance of intermediate-term U.S. bonds. One cannot invest directly in an index.

Beta measures the volatility of the fund, as compared to that of the overall market. The Market’s beta is set at 1.00; a beta higher than 1.00 is considered to be more volatile than the market, while a beta lower than 1.00 is considered to be less volatile.

Book Value is the net asset value of a company, calculated by total assets minus intangible assets and liabilities.

Breakeven is the point at which cost and income are equal and there is neither profit nor loss

C

Call is an option contract giving the owner the right, but not the obligation, to buy a specified amount of an underlying security at a specified price within a specified time.

Call Diagonal is a diagonal spread is an options strategy that involves buying (selling) a call (put) option at one strike price and one expiration and selling (buying) a second call (put) at a different strike price and expiration

Call Spread is an option spread strategy that is created when equal number of call options are bought and sold simultaneously

Call Vertical is an options strategy that involves buying (selling) a call (put) and simultaneously selling (buying) another call (put) at a different strike price, but with the same expiration

Capital Expenditure (CapEx) is the funds used by a company to acquire or upgrade physical assets such as property, industrial buildings, or equipment. This type of outlay is made by companies to maintain or increase the scope of their operations. 

Cash Flow can be used as an indication of a company’s financial strength and represents earnings before depreciation, amortization, and non-cash charges. It is the net amount of cash and cash equivalents moving into and out of business. 

Compound Annual Growth Rate (CAGR) is a useful measure of growth over multiple time periods.

Comprehensive Capital Analysis and Review (CCAR) is a United States regulatory framework introduced by the Federal Reserve in order to assess, regulate, and supervise large banks and financial institutions.

Consumer Price Index (CPI) is a measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care.

Correlation is a statistical measure that indicates the extent to which two or more variables move in relation to each other.

Credit spread is the difference in yield between a U.S. Treasury bond and another debt security of the same maturity but different credit quality.

D

DAX, also known as the Deutscher Aktien Index, is a stock index that represents 30 of the largest and most liquid German companies that trade on the Frankfurt Exchange. One cannot invest directly in an index. 

Debt to GDP Ratio is the ratio of a country's national debt to its gross domestic product. 

Distribution Coverage (Coverage Ratio) compares distributable cash flow generated in a period to the total cash distributions paid for that period. 

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. 

Dividend Coverage represents the number of times a company can pay its dividend to shareholders. It is calculated as annual earnings per share divided by annual dividend per share.

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

DOE is the abbreviation for Department of Energy

Dow Jones Industrial Average Index (DJIA) is an unmanaged index commonly used to measure the performance of U.S. stocks. One cannot invest directly in an index. 

Down-Market Capture Ratio is a statistical measure of an investment manager's overall performance in down-markets.

Duration is a measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. Duration is expressed as a number of years.

E

Earnings Growth is the actual or expected increase in profits over two comparable periods of time. 

Earnings per Share (EPS) is the portion of a company's profit allocated to each outstanding share of common stock. It serves as an indicator of a company's profitability.

Earnings Yield is the 12-month earnings divided by the share price. The earnings yield (which is the inverse of the P/E ratio) shows the percentage of a company's earnings per share.

EBITDA is the acronym for earnings before interest, taxes, depreciation, amortization, and it is a measure of a company's operating performance.

EBITDA/EV (EBITDA to Enterprise Value)is a ratio that measures a company's return on investment, and it provides a normalized ratio for comparing the operations of different companies.

Effective duration is a calculation used to approximate the actual, modified duration of a callable bond. It takes into account that future interest rate changes will affect the expected cash flows for a callable bond.

 Effective Maturity of a bond refers to the effective yield or effective rate of interest of the bond at the culmination of its tenure. ("Tenure" is the length of time until the bond matures.)

ESG an abbreviation for Environmental, Social, and Governance,  is a set of aspects, including environmental issues, social issues, and corporate governance that can be considered in investing. Investing with ESG considerations is sometimes referred to as responsible investing or, in more proactive cases, impact investing.

EV is an abbreviation for an electric vehicle that can powered by an electric motor that draws electricity from a battery.

EV/EBITDA (Enterprise Value to EBITDA), also known as the enterprise multiple, is the ratio of a company's enterprise value to its earnings before non-cash items.

EV/Sales (Enterprise value to sales) compares the enterprise value of a company to its annual sales.

EV/TAM (Enterprise value to total addressable market) compares the enterprise value of a company to the total revenue opportunity available.

F

FAANG is an acronym that refers to the stocks of five prominent American technology companies: Meta (META) (formerly known as Facebook), Amazon (AMZN), Apple (AAPL), Netflix (NFLX); and Alphabet (GOOG) (formerly known as Google). 

FED is an abbreviation for  The Federal Reserve System the central banking system of the United States.

FERC refers to the Federal Energy Regulatory Commission and is an independent agency that regulates the interstate transmission of natural gas, oil, and electricity.

Forward Earnings are an estimate of the next period's earnings of a company, usually to completion of the current fiscal year and sometimes of the following fiscal year.  

Forward Price/Earnings is a measure of the price-to-earnings ratio using forecasted earnings rather than historical data.

Four-Legged Spread is a neutral options strategy comprising of long and short options across four different strike prices in order to profit should the underlying stock remain within the bounds of the middle two strike prices

Free Cash Flow is a measure of financial performance calculated as operating cash flow minus capital expenditures.

FTSE All Share Index is a market-capitalization weighted index representing the performance of all eligible companies listed on the London Stock Exchange's main market.

G

Gross Domestic Product (GDP) is the total market value of the finished goods and services produced within a country’s borders. 

Gross Expense Ratio (GER) is the total percentage of a mutual fund's assets devoted to running the fund. 

H

Holdings are the contents of an investment portfolio held by an individual or an entity, such as a mutual fund or a pension fund. Portfolio holdings may encompass a wide range of investment products, including stocks, bonds, mutual funds, options, futures, and exchange-traded funds (ETFs).

I

IBD’s SmartSelect composite rating combines all five IBD ratings (Technical Rating, Fundamental Rating, Attractiveness Rating, Group's Technical Rating and Group's Fundamental Rating) into 1-99 rating scale. Those stocks that earn a 99 score are deemed to have the best overall strength for investment and thus the most potential for a fair return on investment in the immediate future. IBD Best Mutual Funds Criteria: Funds considered have at least $100 million in assets and at least 10 years old, beaten its benchmark for the past one, three, five and ten years. 

IBD’s Best Mutual Funds 2018 Awards criteria: Stock mutual funds qualify for this exclusive recognition only if they have beaten the broad market over all four of the following time periods: past one, three, five, and 10 years. Awards were earned in 12 mutual fund categories. The top five ranked by 10- year performance is highlighted as the best of the best. The winning international stock mutual funds were compared to the MSCI EAFE Index in each of the four periods through December 31, 2017.

Inflation is a general increase in prices and a fall in the purchasing value of money.

Inflation Escalator is a provision to allow for an increase in prices.

Internal rate of return (IRR) is a metric used in capital budgeting to estimate the profitability of potential investments.

In The Money is an expression that refers to an option that possesses intrinsic value

J

JPX-Nikkei Index 400 is composed of 400 companies with high appeal for investors, which meet requirements of global investment standards, such as efficient use of capital and investor-focused management perspectives. One cannot invest directly in an index.

JPY is the currency abbreviation for the Japanese yen.

K

KBW Bank Index is an index consisting of stocks of banking companies and serves as a benchmark of the banking sector.  One cannot invest directly in an index.

KBW Regional Banking Index is an index consisting of stocks of U.S. regional banking and thrift companies. One cannot invest directly in an index.

Key Performance Indicators (KPIs) measure a company's success versus a set of targets, objectives, or industry peers.

L

M

M&A is the abbreviation for mergers and acquisitions.

Market Capitalization refers to the total dollar market value of a company's outstanding shares. Commonly referred to as "market cap," it is calculated by multiplying a company's shares outstanding by the current market price of one share. 

Median Debt Leverage looks at how much capital comes in the form of debt and assesses the ability of a company to meet its financial obligations.

Mega-Cap Stock is a publicly traded company with a market capitalization, or market value, of more than $200 billion.

MLP refers to Master Limited Partnership

MSCI provides investment data and analytics services to investors.

N

Nasdaq Composite Index is a broad-based capitalization-weighted index of all the Nasdaq National Market and Small Cap stocks. One cannot invest directly in an index.

Nasdaq 100 Index is a stock index of the 100 largest companies by modified market capitalization trading on Nasdaq exchanges.

Net Debt To EBITDA (Earnings Before Interest Depreciation and Amortization) is a measurement of leverage, calculated as a company's liabilities minus cash or cash equivalents, divided by its EBITDA.

Net Interest Margin (NIM) is a measurement comparing the interest income a financial firm generates from credit products, such as loans and mortgages, with the outgoing interest it pays holders of savings accounts and certificates of deposit (CDs).

NGO stands for Non-governmental Organization

Nikkei is short for Japan's Nikkei 225 Stock Average, the leading and most-respected index of Japanese stocks. It is a price-weighted index comprised of Japan's top 225 blue-chip companies traded on the Tokyo Stock Exchange. One cannot invest directly in an index. 

Nikkei 225 Futures Index introduced at the Singapore Exchange in 1986 is an internationally recognized futures index. One cannot invest directly in an index.

O

OPEC is the abbreviation for Organization of Petroleum Exporting Countries.

Options are generally used for hedging purposes but can be used for speculation. That is, options generally cost a fraction of what the underlying shares would. Using options is a form of leverage, allowing an investor to make a bet on a stock without having to purchase or sell the shares outright.

Out of the money is also known as OTM, meaning an option has no intrinsic value, only extrinsic value.

P

Pending Home Sales Index tracks home sales in which a contract is signed but the sale has not yet closed, commonly used as an indicator of future existing home sales. One cannot invest directly in an index. 

Puts give holders of the option the right, but not the obligation, to sell a specified amount of an underlying security at a specified price within a specified time frame.

Price to Book Ratio is used to compare a stock's market value to its book value. 

Price to Cash Flow is the ratio of a stock’s price to its cash flow per share.

Price to Earnings Ratio (P/E) is the market price per share divided by earnings per share.

Price to Sales Ratio is a tool for calculating a stock's valuation relative to other companies. It is calculated by dividing a stock's current price by its revenue per share. 

Price to Tangible Book Value (PTBV) is a valuation ratio expressing the price of a security compared to its hard, or tangible, book value as reported in the company's balance sheet. The tangible book value number is equal to the company's total book value less the value of any intangible assets. Intangible assets can be such items as patents, intellectual property, goodwill, etc. 

Q

QQQ: Invesco QQQ is a notable ETF tracking the NASDAQ 100. Ellison-TD Ameritrade 7/2020

R

R&D refers to Research and Development.

Return on Assets is a profitability ratio that provides how much profit a company is able to generate from its assets.

Return on Capital is a ratio measuring the profitability of a firm expressed as a percentage of funds acquired from investors and lenders. 

Return on Equity (ROE) is a measure of a company’s profitability and represents the average return on equity on the securities in the portfolio, not the actual return on equity on the portfolio.

RSP - is the ticker symbol for the Invesco S&P 500 Equal Weight ETF that offers investors equally weighted exposure to the S&P 500 index

Russell Midcap® Index is an unmanaged index commonly used to measure the performance of U.S. medium-capitalization stocks. One cannot invest directly in an index.

Russell Midcap® Growth Index is an unmanaged index commonly used to measure the performance of U.S. medium-capitalization growth stocks. One cannot invest directly in an index.

Russell/Nomura Total Market™ Index is a market capitalization-weighted index of Japanese equities. One cannot invest directly in an index.

Russell/Nomura Small Cap™ Index represents the universe of small-capitalization companies in the Japanese equity markets. One cannot invest directly in an index.

Russell 1000® Index is an unmanaged index commonly used to measure the performance of U.S. large-cap stocks. One cannot invest directly in an index.

Russell 1000® Index Financials is an unmanaged index commonly used to measure the performance of U.S. large-capitalization financial sector stocks. One cannot invest directly in an index.

Russell 1000® Value Index is an unmanaged index commonly used to measure the performance of U.S. value-oriented, large-cap stocks. One cannot invest directly in an index.

Russell 2000® Index is an unmanaged index commonly used to measure the performance of U.S. small-capitalization stocks. One cannot invest directly in an index.

Russell 2000® Index Financials is an unmanaged index commonly used to measure the performance of U.S. small-capitalization financial sector stocks. One cannot invest directly in an index.

Russell 3000® Index is an unmanaged index commonly used to measure the performance of U.S. stocks. One cannot invest directly in an index.

Frank Russell Company (“Russell”) is the source and owner of the trademarks, service marks, and copyrights related to the Russell Indexes. Russell® is a trademark of Russell. Neither Russell nor its licensors accept any liability for any errors or omissions in the Russell Indexes or Russell ratings or underlying data, and no party may rely on any Russell Indexes or Russell ratings or underlying data contained in this communication. No further distribution of Russell data is permitted without Russell’s express written consent. Russell does not promote, sponsor, or endorse the content of this communication.

S

S&P Capital IQ is a highly reputable rating and data analytics provider.

Seasonally Adjusted Annual Rate (SAAR) is a rate adjustment used for economic or business data, such as sales numbers or employment figures, that attempts to remove seasonal variations in the data. 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.

SPAC is an abbreviation for a Special Purpose Acquisition Company, which is a company with no commercial operations formed to raise capital through an initial public offering (IPO) for the purpose of acquiring an existing company.

Spot Price is the current price in the marketplace at which a given asset such as a commodity can be bought or sold for immediate delivery.

SPY is the ticker symbol for the SPDR® S&P 500® ETF, an exchange traded fund that tracks the performance of the S&P 500® Index.

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

Standard and Poor's / S&P Utilities® Index is an index that comprises those companies included in the S&P 500 that are classified as members of the GICS Utilities sector. One cannot invest directly in an index. 

Standard and Poor's / S&P 500® Index is an unmanaged index and is commonly used as a measure of the performance of the U.S. stock market as a whole. One cannot invest directly in an index. 

Standard and Poor's / S&P 500® Consumer Discretionary Index is an index that comprises those companies included in the S&P 500 that are classified as members of the GICS consumer discretionary sector. One cannot invest directly in an index.

Standard and Poor's / S&P 500® Consumer Staples Index is an index that comprises those companies included in the S&P 500 that are classified as members of the GICS consumer staples sector. One cannot invest directly in an index.

Standard and Poor's / S&P 500® Energy Index is an index that comprises those companies included in the S&P 500 that are classified as members of the GICS energy sector. One cannot invest directly in an index.

Standard and Poor's /  S&P 500® Equal Weight Index (EWI) is the equal-weight version of the widely-used S&P 500.

Standard and Poor's / S&P® 600 Index is an unmanaged index of 600 stocks chosen for their relatively small market cap and is commonly used as a measure of the performance of small-cap stocks as a whole. One cannot invest directly in an index. 

Standard and Poor's/ S&PComposite 1500® Index combines three leading indices, the S&P 500®, the S&P MidCap 400®, and the S&P SmallCap 600®, to cover approximately 90% of U.S. market capitalization. 

Standard and Poor's / S&P Financials® Index is an index that comprises those companies included in the S&P 1500 that are classified as members of the GICS Financials sector. One cannot invest directly in an index.

Standard and Poor's / S&P Small Cap® Index is an unmanaged index commonly used to measure the performance of the small-cap segment of the U.S. equity market.

Strike price is the price at which a derivative contract can be bought or sold (exercised).

T

The 10-year Treasury note is a debt obligation issued by the United States government with a maturity of 10 years upon initial issuance. 

Tokyo Stock Price Index (TOPIX) is a market capitalization-weighted index of all companies listed on the First Section of the Tokyo Stock Exchange. One cannot invest directly in an index.

Tokyo Stock Price Index (TOPIX) Small Index is a market capitalization-weighted index designed to measure the performance of the stocks listed on the First Section of the Tokyo Stock Exchange, excluding the TOPIX 500 stocks and non-eligible stocks. One cannot invest directly in an index.

Tokyo Stock Price Index (TOPIX)  500 measures the performance of the 500 most liquid stocks with the largest market capitalization that are members of the TOPIX Index. One cannot invest directly in an index.

 

Trailing Price to Earnings Ratio is calculated by taking the current stock price and dividing it by the trailing earnings per share for the past 12 months.

Turnover is a measure of how frequently assets within a fund are bought and sold by the managers.

U

Up-Market Capture Ratio is the statistical measure of an investment manager's overall performance in up-markets.

V

VIX is the Chicago Board Options Exchange (CBOE) Volatility Index, which is a widely used measure of market risk.

W

X

Y

Yield Curve is a line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity dates.

Yield to worst measures the lowest possible yield that can be received on a bond with an early retirement provision.

Z

Get insights and news delivered to you.

Sign up for updates

Learn how Hennessy approaches investing.

Our Philosophy

Let's work together to get you on your way.

Start Investing
Contact Us
Hennessy Funds
7250 Redwood Boulevard, Suite 200
 Novato, CA 94945
Follow Us

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.

Quasar Distributors, LLC, Distributor.

Subscribe for Updates

*Required Fields