• Overview

    HMSFX
    Investor

    Hennessy BP Midstream Fund

    Actively managed, the Fund maintains a concentrated portfolio of midstream energy companies and seeks to deliver a significant and predictable income stream.

    Fund Facts

    Category

    Sector & Specialty - Energy

    Inception Date

    12/31/13

    Morningstar style box

    Morningstar style box
    portfolio manager perspective
    portfolio manager perspective

    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 of 25-30 companies
    • In-depth, rigorous "boots-on-the-ground" research led by managers with decades of combined energy investing experience

    Investment Approach

    The Hennessy BP 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

    • Toby Loftin
      Portfolio Manager
      • 5
        Years on Fund
      • 20
        Years of Experience
    • Ben Cook
      Portfolio Manager
      • 1
        Year on Fund
      • 19
        Years of Experience

    The Fund is sub-advised by Dallas-based BP Capital Fund Advisors, LLC.  Working alongside legendary energy investor and BP Capital founder, Boone Pickens, the Portfolio Managers have developed deep relationships across the energy industry and maintain a sole focus on energy investing.

    “We believe midstream companies are clear beneficiaries of the tremendous growth in U.S. energy supply and global demand.”

    - Toby Loftin

  • Insights & News

  • Performance

    Daily Pricing & Performance

    as of 4/24/19 (Investor)
    • Nav

      $12.74

    • $ Change

      -$0.07

    • % Change

      -0.55%

    • YTD

      19.53%

    Average Annualized Total Return

    as of 3/31/19 (Investor)
    Name 1 Mo YTD 1 yr 3 yr 5 yr Since Inception (12/31/13)
    BP Midstream Fund (HMSFX) 4.28% 19.81% 10.15% 5.19% -3.57% -2.54%
    Alerian MLP Index 3.43% 16.82% 15.11% 5.69% -4.73% -4.18%
    S&P 500® Index 1.94% 13.65% 9.50% 13.51% 10.91% 10.75%

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    as of 3/31/19 (Investor)
    Name QTR YTD 1 yr 3 yr 5 yr Since Inception (12/31/13)
    BP Midstream Fund (HMSFX) 19.81% 19.81% 10.15% 5.19% -3.57% -2.54%
    Alerian MLP Index 16.82% 16.82% 15.11% 5.69% -4.73% -4.18%
    S&P 500® Index 13.65% 13.65% 9.50% 13.51% 10.91% 10.75%

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    Hypothetical Growth of $10,000

    as of 3/31/2019 (Investor)

    Value of $10,000 invested between 3/31/2018 and 3/31/2019

    BP Midstream Fund (HMSFX) $11,015
    Alerian MLP Index $11,511
    S&P 500® Index $10,950

    Value of $10,000 invested between 3/31/2016 and 3/31/2019

    BP Midstream Fund (HMSFX) $11,640
    Alerian MLP Index $11,807
    S&P 500® Index $14,625

    Value of $10,000 invested between 3/31/2014 and 3/31/2019

    BP Midstream Fund (HMSFX) $8,340
    Alerian MLP Index $7,847
    S&P 500® Index $16,781

    Value of $10,000 invested between 12/31/2013 and 3/31/2019

    BP Midstream Fund (HMSFX) $8,739
    Alerian MLP Index $7,994
    S&P 500® Index $17,084

    Calendar Year Total Returns

      2014 2015 2016 2017 2018
    BP Midstream Fund (HMSFX)
    11.55 -28.17 21.55 -4.97 -21.20
    Alerian MLP Index
    4.80 -32.59 18.31 -6.52 -12.42
    S&P 500® Index
    13.69 1.38 11.96 21.83 -4.38

    Yield

    as of 3/31/19 (Investor)
    Distribution Rate 8.18%
    30-Day SEC Yield 0.04%
    Distribution Frequency Quarterly
    Most Recent Distribution
    Paid on 03/01/2019
    $0.2575

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    Returns-Based Statistics
    Relative to Alerian MLP Index

    as of 3/31/19 (Investor)
    Type 3 yr 5 yr
    Alpha -0.34 0.75
    Beta 0.99 0.91
    Upside Capture 95.88 87.37
    Downside Capture 97.18 85.86

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    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 3/31/19 (Investor)
    Type 3 yr 5 yr
    BP Midstream Fund (HMSFX) 0.29 -0.13
    Alerian MLP Index 0.32 -0.18
    Energy Limited Partnership Category Average 0.41 -0.18

    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 3/31/19 (Investor)
    Type 3 yr 5 yr
    BP Midstream Fund (HMSFX) 18.45 19.17
    Alerian MLP Index 18.04 19.91
    Energy Limited Partnership Category Average 17.96 19.66

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

    Fund Expenses

    • Gross expense ratio

      1.86%

    • Net expense ratio

      1.78%

    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 3/31/19. 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 MLP Index is a market capitalization-weighted index consisting of prominent energy Master Limited Partnerships (MLPs). 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.

    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 0.04%; unsubsidized 0.00% as of 3/31/19. Subsidized yields reflect fee waivers in effect.

    A significant portion of the BP 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 until 10/25/20.

    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.

  • Portfolio

    Portfolio Allocation

    as of 3/31/19
    Allocation % of Net Assets
    Natural Gas/NGL Transportation 36.5%
    Gathering and Processing 32.1%
    Crude Oil and Refined Products 31.4%

    Portfolio Characteristics

    as of 3/31/19
    Total Fund Assets $60.9 Million
    Active Share vs. Alerian MLP Index 48%
    Portfolio Turnover 68%
    Median Market Cap $8.9 Billion
    Median Price/Earnings 14.9x
    Median Price/Book 1.7x

    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 3/31/19
    Fund
    Energy 97.7%
    Cash & Other 2.3%
    Sub-Industry Weighting % of Net Assets
    Oil & Gas Storage & Transportation 96.2%
    Oil & Gas Exploration & Production 1.5%

    Portfolio Holdings

    Top 10 Holdings

    as of 3/31/19
    Top 10 Holdings Ticker % of Net Assets
    Energy Transfer LP ET 14.3%
    Enterprise Products Partners, LP EPD 10.4%
    Williams Companies, Inc. WMB 8.7%
    Targa Resources Corp. TRGP 7.2%
    Kinder Morgan, Inc. KMI 6.0%
    Shell Midstream Partners, LP SHLX 5.4%
    Plains All American Pipeline, LP PAA 5.2%
    MPLX, LP MPLX 4.9%
    Antero Midstream Corp. AM 4.6%
    Phillips 66 Partners, LP PSXP 4.5%
    Total as % of Net Assets 71.2%

    Total Holdings: 20

    as of 3/31/19
    Equity Holdings Ticker % of Net Assets
    Energy Transfer LP ET 14.3%
    Enterprise Products Partners, LP EPD 10.4%
    Williams Companies, Inc. WMB 8.7%
    Targa Resources Corp. TRGP 7.2%
    Kinder Morgan, Inc. KMI 6.0%
    Shell Midstream Partners, LP SHLX 5.4%
    Plains All American Pipeline, LP PAA 5.2%
    MPLX, LP MPLX 4.9%
    Antero Midstream Corp. AM 4.6%
    Phillips 66 Partners, LP PSXP 4.5%
    Magellan Midstream Partners, LP MMP 4.4%
    CNX Midstream Partners, LP CNXM 4.0%
    ONEOK, Inc. OKE 3.6%
    EnLink Midstream, LLC ENLC 3.2%
    Western Midstream Partners LP WES 3.1%
    Andeavor Logistics, LP ANDX 2.2%
    Tallgrass Energy LP TGE 2.1%
    BP Midstream Partners, LP BPMP 2.0%
    Tellurian, Inc. TELL 1.5%
    Hess Midstream Partners, LP HESM 0.5%
    Total as % of Net Assets 97.7%
    Cash & Other Holdings % of Net Assets
    Cash & Other 2.3%
    Total as % of Net Assets 2.3%

    Country Allocation

    as of 3/31/19
    • United States

      97.7%

    • Cash & Other

      2.3%

    United States 97.7%
    Cash & Other 2.3%
  • Distributions

    The Hennessy BP 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
    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

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    Past performance is not a guarantee of future results.

    A significant portion of the BP 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

    Download PDF View Online
    Fund Documents
    BP Midstream Fund Fact Sheet
    BP Midstream Fund Portfolio Manager Commentary View
    BP Midstream Fund Summary Prospectus
    Full Prospectus
    Statement of Additional Information
    Shareholder Reports
    BP Midstream Fund Semi-Annual Report
    BP Midstream Annual Report