Hennessy Technology Fund
Investor
HTECX
Institutional
HTCIX
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  • Overview

    Category
    Sector & Specialty - Technology

    Hennessy Technology Fund

    Quantitatively managed, the Fund maintains a relatively concentrated portfolio of Technology stocks.

    Investor

    HTECX

    Institutional

    HTCIX

    Documents

    Morningstar style box

    Morningstar style box
    Portfolio Manager Commentary
    Portfolio Manager Commentary

    Why Invest

    • Opportunity to participate in the potential growth of technology companies
    • Focus on minimizing volatility in a relatively volatile sector
    • Potential high-growth companies purchased at attractive valuations

    Investment Approach

    Holdings are selected from the Information Technology sector as well as other sub-industries, including internet and direct marketing, interactive home entertainment, and interactive media and services.

    Analyzing several metrics, the Hennessy Technology Fund selects 60 stocks which demonstrate:

    • Sector-leading cash flows and profits, with the ability to sustain profitability
    • A history of delivering returns in excess of the cost of capital
    • Attractive balance sheet risk profile
    • Attractive relative valuation
    • Ability to generate cash

    Portfolio Managers

    “We believe a carefully selected, concentrated portfolio provides the best opportunity to outperform the overall Technology sector.”

    - Ryan Kelley

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  • Insights & News

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  • Performance

    Daily Pricing & Performance

    as of 1/25/22
    • Investor Class (HTECX)

      • NAV

        $17.65

      • $ Change

        -$0.45

      • % Change

        -2.49%

      • YTD

        -12.15%

    • Institutional Class (HTCIX)

      • NAV

        $18.15

      • $ Change

        -$0.47

      • % Change

        -2.52%

      • YTD

        -12.15%

    Average Annualized Total Return

    as of 12/31/21
    Name 1 Mo YTD 1 yr 3 yr 5 yr 10 yr Since Inception (2/1/02)
    Investor Class (HTECX) 2.81% 13.37% 13.37% 28.00% 19.87% 14.12% 8.90%
    Institutional Class (HTCIX) 2.82% 13.66% 13.66% 28.32% 20.17% 14.44% 9.07%
    Nasdaq Composite Index 0.74% 22.18% 22.18% 34.26% 24.97% 20.99% 12.28%
    S&P 500® Index 4.48% 28.71% 28.71% 26.07% 18.47% 16.55% 9.69%

    Please swipe to view table

    as of 12/31/21
    Name QTR YTD 1 yr 3 yr 5 yr 10 yr Since Inception (2/1/02)
    Investor Class (HTECX) 2.89% 13.37% 13.37% 28.00% 19.87% 14.12% 8.90%
    Institutional Class (HTCIX) 2.93% 13.66% 13.66% 28.32% 20.17% 14.44% 9.07%
    Nasdaq Composite Index 8.45% 22.18% 22.18% 34.26% 24.97% 20.99% 12.28%
    S&P 500® Index 11.03% 28.71% 28.71% 26.07% 18.47% 16.55% 9.69%

    Please swipe to view table

    Hypothetical Growth of $10,000

    as of 12/31/2021

    Value of $10,000 invested between 12/31/2020 and 12/31/2021
    Technology Fund (HTECX) $11,337
    Technology Fund (HTCIX) $11,366
    Nasdaq Composite Index $12,218
    S&P 500® Index $12,871

    Value of $10,000 invested between 12/31/2018 and 12/31/2021
    Technology Fund (HTECX) $20,971
    Technology Fund (HTCIX) $21,127
    Nasdaq Composite Index $24,203
    S&P 500® Index $20,037

    Value of $10,000 invested between 12/31/2016 and 12/31/2021
    Technology Fund (HTECX) $24,746
    Technology Fund (HTCIX) $25,064
    Nasdaq Composite Index $30,485
    S&P 500® Index $23,341

    Value of $10,000 invested between 12/31/2011 and 12/31/2021
    Technology Fund (HTECX) $37,469
    Technology Fund (HTCIX) $38,545
    Nasdaq Composite Index $67,199
    S&P 500® Index $46,258

    Value of $10,000 invested between 2/1/2002 and 12/31/2021
    Technology Fund (HTECX) $54,649
    Technology Fund (HTCIX) $56,382
    Nasdaq Composite Index $100,419
    S&P 500® Index $63,045

    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

      2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
    Investor Class (HTECX)    		 8.67 29.75 1.73 3.46 2.03 20.20 -1.82 39.10 32.98 13.37
    Institutional Class (HTCIX)    		 8.93 30.12 1.99 3.90 2.39 20.56 -1.60 39.48 33.26 13.66
    Nasdaq Composite Index    		 17.75 40.11 14.75 6.96 8.87 29.64 -2.84 36.69 44.92 22.18
    S&P 500® Index    		 16.00 32.39 13.69 1.38 11.96 21.83 -4.38 31.49 18.40 28.71
    Year
    Investor Class (HTECX)
    Institutional Class (HTCIX)
    Nasdaq Composite Index
    S&P 500® Index
    2011 -10.77% -10.67% -0.79% 2.11%
    2010 12.73% 12.93% 18.13% 15.06%
    2009 54.93% 54.93% 45.34% 26.46%
    2008 -42.89% -42.89% -39.98% -37.00%
    2007 9.36% 9.36% 10.66% 5.49%
    2006 9.25% 9.25% 10.89% 15.79%
    2005 11.80% 11.80% 2.12% 4.91%
    2004 6.75% 6.75% 10.27% 10.88%
    2003 52.86% 52.86% 50.77% 28.68%

    Please swipe to view table

    Returns-Based Statistics
    Relative to Nasdaq Composite Index

    as of 12/31/21
    Investor Class (HTECX)
    Type 3 yr 5 yr 10 yr
    Alpha -6.60 -4.81 -6.76
    Beta 1.08 1.05 1.06
    Upside Capture 95.08 90.64 89.49
    Downside Capture 118.58 106.30 119.91
    Institutional Class (HTCIX)
    Type 3 yr 5 yr 10 yr
    Alpha -6.34 -4.56 -6.48
    Beta 1.08 1.05 1.07
    Upside Capture 95.53 91.24 90.11
    Downside Capture 118.19 105.99 119.22

    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 12/31/21
    Type 3 yr 5 yr 10 yr
    Investor Class (HTECX) 1.18 0.96 0.81
    Institutional Class (HTCIX) 1.19 0.98 0.82
    Nasdaq Composite Index 1.62 1.33 1.30
    Technology Category Average 1.51 1.28 1.17

    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 12/31/21
    Type 3 yr 5 yr 10 yr
    Investor Class (HTECX) 22.57 19.76 17.64
    Institutional Class (HTCIX) 22.56 19.76 17.65
    Nasdaq Composite Index 18.94 17.17 15.14
    Technology Category Average 20.61 18.60 16.46

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

    Fund Expenses

    • Investor Class (HTECX)

      • Gross expense ratio

        3.45%

      • Net expense ratio

        1.23%

    • Institutional Class (HTCIX)

      • Gross expense ratio

        3.08%

      • Net expense ratio

        0.98%

    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 12/31/21. 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 performance shown for Institutional Class / HTCIX shares periods prior to 3/12/10 represents the performance of Investor Class shares of the Fund and includes expenses that are not applicable to and are higher than those of the Institutional Class shares.

    The performance shown for periods prior to 10/26/12 is that of the predecessor FBR Fund.

    Nasdaq Composite Index is a broad-based capitalization-weighted index of all the Nasdaq National Market and Small Cap stocks. 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.

    Standard & Poor’s Financial Services is the source and owner of the S&P® and S&P 500® trademarks.

    The Fund’s investment manager has contractually agreed to limit expenses until 2/28/2022.

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

    Active share was calculated versus the Fidelity Nasdaq Composite Index Fund (FNCMX), which differs from the Fund's primary benchmark. References to other investment products should not be interpreted as an offer of these securities.

  • Portfolio

    Portfolio Characteristics

    as of 12/31/21
    Inception Date (HTECX) 2/1/02
    Inception Date (HTCIX) 3/12/10
    Total Fund Assets $8 Million
    Active Share vs. Fidelity Nasdaq Composite Index Fund (FNCMX) 91%
    Portfolio Turnover 202%
    Median Market Cap $11.4 Billion
    Median Price/Earnings 20.5x
    Median Price/Book 10.1x

    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 12/31/21
    Fund
    Information Technology 85.8%
    Consumer Discretionary 7.6%
    Communication Services 6.3%
    Cash & Other 0.4%
    Sub-Industry Weighting % of Net Assets
    Application Software 15.1%
    Technology Hardware, Storage & Peripherals 13.1%
    Systems Software 11.6%
    Semiconductors 7.9%
    Internet & Direct Marketing Retail 7.6%
    Communications Equipment 7.2%
    Data Processing & Outsourced Services 7.1%
    Electronic Manufacturing Services 7.0%
    Semiconductor Equipment 6.7%
    Technology Distributors 5.1%
    Interactive Media & Services 3.2%
    Interactive Home Entertainment 3.1%
    IT Consulting & Other Services 1.8%
    Electronic Components 1.7%
    Electronic Equipment & Instruments 1.6%

    Portfolio Holdings

    Top 10 Holdings

    as of 12/31/21
    Top 10 Holdings Ticker % of Net Assets
    Paymentus Holdings, Inc. PAY 2.1%
    Calix, Inc. CALX 1.9%
    Jabil, Inc. JBL 1.9%
    Fortinet, Inc. FTNT 1.9%
    Extreme Networks,, Inc.. EXTR 1.8%
    Fair Isaac Corp. FICO 1.8%
    Mastercard, Inc. MA 1.8%
    Xerox Holdings Corp. XRX 1.8%
    Accenture PLC ACN 1.8%
    Qualtrics International, Inc. XM 1.8%
    Total as % of Net Assets 18.5%

    Please swipe to view table

    Total Holdings: 60

    as of 12/31/21
    Print All Holdings
    Equity Holdings Ticker % of Net Assets
    Paymentus Holdings, Inc. PAY 2.1%
    Calix, Inc. CALX 1.9%
    Jabil, Inc. JBL 1.9%
    Fortinet, Inc. FTNT 1.9%
    Extreme Networks,, Inc.. EXTR 1.8%
    Fair Isaac Corp. FICO 1.8%
    Mastercard, Inc. MA 1.8%
    Xerox Holdings Corp. XRX 1.8%
    Accenture PLC ACN 1.8%
    Qualtrics International, Inc. XM 1.8%
    Flex, Ltd. FLEX 1.7%
    A10 Networks, Inc. ATEN 1.7%
    TD SYNNEX Corp. SNX 1.7%
    Nokia NOK 1.7%
    Apple, Inc. AAPL 1.7%
    Lam Research Corp. LRCX 1.7%
    Autodesk, Inc. ADSK 1.7%
    Arrow Electronics, Inc. ARW 1.7%
    Sanmina Corp. SANM 1.7%
    DocuSign, Inc. DOCU 1.7%
    Atlassian Corp., PLC TEAM 1.7%
    Seagate Technology Holdings PLC STX 1.7%
    Telefonaktiebolaget LM Ericsson ERIC 1.7%
    Zeta Global Holdings Corp. ZETA 1.7%
    KLA Corp. KLAC 1.7%
    The Western Union Co. WU 1.7%
    HUYA, Inc. HUYA 1.7%
    CDW Corp. CDW 1.7%
    Vishay Intertechnology, Inc. VSH 1.7%
    ASML Holding NV ASML 1.7%
    Intel Corp. INTC 1.6%
    Palo Alto Networks, Inc. PANW 1.6%
    Kimball Electronics, Inc. KE 1.6%
    QUALCOMM, Inc. QCOM 1.6%
    Kulicke & Soffa Industries, Inc. KLIC 1.6%
    ServiceNow, Inc. NOW 1.6%
    Hewlett Packard Enterprise Co. HPE 1.6%
    Microsoft Corp. MSFT 1.6%
    Dropbox, Inc. DBX 1.6%
    NetApp, Inc. NTAP 1.6%
    Hello Group Inc MOMO 1.6%
    Teradata Corp. TDC 1.6%
    3D Systems Corp. DDD 1.6%
    EverCommerce, Inc. EVCM 1.6%
    Lands' End, Inc. LE 1.6%
    Autohome, Inc. ATHM 1.6%
    Shutterstock, Inc. SSTK 1.6%
    Zoom Video Communications, Inc. ZM 1.6%
    Taiwan Semiconductor Manufacturing TSM 1.6%
    Immersion Corp. IMMR 1.6%
    Vontier Corp. VNT 1.6%
    QIWI PLC QIWI 1.6%
    Oracle Corp. ORCL 1.6%
    Advanced Micro Devices, Inc. AMD 1.5%
    Dell Technologies, Inc. DELL 1.5%
    Texas Instruments, Inc. TXN 1.5%
    Qurate Retail, Inc. QRTEA 1.5%
    Etsy, Inc. ETSY 1.5%
    Sciplay Corp. SCPL 1.5%
    Vipshop Holdings, Ltd. VIPS 1.4%
    Total as % of Net Assets 99.7%
    Cash & Other Holdings % of Net Assets
    Cash & Other 0.4%
    Total as % of Net Assets 0.4%

    Please swipe to view table

    Country Allocation

    as of 12/31/21

    • United States

      78.3%

    • International

      21.5%

    • Cash & Other

      0.4%
    United States 78.3%
    Cayman Islands 6.3%
    Ireland 3.5%
    Sweden 1.7%
    United Kingdom 1.7%
    Singapore 1.7%
    Netherlands 1.7%
    Finland 1.7%
    Taiwan 1.6%
    Cyprus 1.6%
    Cash & Other 0.4%

  • Distributions

    The Hennessy Technology Fund pays capital gains (if any) once annually, usually in December. Ordinary income distributions (if any) are paid annually, usually in December.

    Date Paid Income Short-Term Gain Long-Term Gain Total Per Share Reinvest Price
    12/07/2021 -- $3.94213 $2.76132 $6.70345 $19.97
    12/29/2020 $0.04309 -- -- $0.04309 $23.38
    12/08/2020 -- $0.80473 $1.55971 $2.36444 $22.69
    12/06/2019 -- $0.21868 $0.30216 $0.52084 $19.15
    12/07/2018 -- $1.57251 $0.68615 $2.25866 $15.07
    12/07/2017 -- -- $1.63413 $1.63413 $16.76
    12/14/2007 -- $0.86749 $0.36093 $1.22842 $11.60
    12/15/2006 -- $0.20290 $0.19125 $0.39415 $11.77
    12/16/2005 -- $0.17257 $0.40606 $0.57864 $11.10
    12/17/2004 -- $0.76921 $0.85416 $1.62337 $10.15
    12/17/2003 -- $0.18108 $0.01552 $0.19661 $10.82

    Please swipe to view table

    Past performance is not a guarantee of future results.

    Download historical distributions and NAVs
    Date Paid Income Short-Term Gain Long-Term Gain Total Per Share Reinvest Price
    12/07/2021 -- $4.05369 $2.83948 $6.89317 $20.53
    12/29/2020 $0.10946 -- -- $0.10946 $23.98
    12/08/2020 -- $0.82768 $1.60417 $2.43185 $23.34
    12/27/2019 $0.00921 -- -- $0.00921 $20.30
    12/06/2019 -- $0.22446 $0.31014 $0.53460 $19.65
    12/07/2018 -- $1.60970 $0.70239 $2.31209 $15.43
    12/07/2017 -- -- $1.66909 $1.66909 $17.11

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

    Paper copies of the annual and semi-annual reports will no longer be 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.

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

Mutual fund investing involves risk. Principal loss is possible. Small and medium-capitalization companies may have more limited liquidity and greater price volatility than large-capitalization companies. Investments in foreign securities may involve greater volatility and political, economic, and currency risk and differences in accounting methods. The Focus, Total Return, Balanced, Large Cap Financial, Small Cap Financial, and BP 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 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.

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 BP 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 BP 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 BP 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 BP 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, BP Energy Transition, BP 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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