Gas Utility Fund Investment Strategy

Portfolio Manager Ryan Kelley describes the Fund's investment strategy, which focuses on the distribution of natural gas by owning publicly traded members of the American Gas Association.

May 2017

  • Ryan C. Kelley
    Ryan C. Kelley, CFA
    Portfolio Manager
 

Ryan Kelley: The Hennessy Gas Utility Fund is invested in the distribution side of natural gas. We think this is where there's great opportunity for investors. With an abundant supply in the United States, low and competitive pricing, and we believe that the use of natural gas will increase over time, and this also helps the companies that are in the Fund.

Portfolio Selection

The portfolio holdings are the same as the AGA Stock Index. The AGA is the American Gas Association, and it’s a trade organization which represents natural gas distribution companies in Washington D.C. The objective is to replicate the AGA Stock Index, so essentially own the same companies and the same percentage holdings as the Index.

Portfolio Components

There are three major buckets in the portfolio. The first is about 50% of the portfolio, and these are diversified utilities which have electricity generation, distribution, natural gas distribution. The second part is about 25% of the portfolio, and these are local distribution companies. The third part is also about 25% of the portfolio, and these are major interstate pipelines, which move natural gas between states as well as into Mexico or Canada. The first two parts of the portfolio typically grow at a slow and steady pace, and they increase dividends yearly. The last part of the portfolio is a bit more volatile, but it has added nicely to performance over time.

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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, 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.

To view the Morningstar ratings for the Japan Fund, please click here. (Media - TD Ameritrade) JPSIX received Overall Morningstar rating of 5 Stars based on risk-adjusted returns among 41 Japan Stock funds, as of 9/30/19.

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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