September 7, 2012 - Hennessy Funds is pleased to announce that definitive proxy/prospectus materials related to the reorganization of the FBR Funds into the Hennessy Funds have been filed with the SEC and are being sent to shareholders of the FBR Funds for their vote of approval. Pending shareholder approval, this transaction is expected to take place on October 29, 2012.
Seven of the ten FBR Funds will move under the Hennessy investment management umbrella but will continue to be managed by the portfolio managers that oversee the portfolios today, and the investment objectives will remain the same:
FBR Focus Fund → Hennessy Focus Fund
FBR Gas Utility Index Fund → Hennessy Gas Utility Index Fund
FBR Large Cap Financial Fund → Hennessy Large Cap Financial Fund
FBR Small Cap Financial → Hennessy Small Cap Financial Fund
FBR Technology Fund → Hennessy Technology Fund
FBR Balanced Fund → Hennessy Equity and Income Fund
FBR Core Bond Fund → Hennessy Core Bond Fund
It is anticipated that the expense ratio for each of these seven Funds will be the same or slightly lower following the proposed reorganization into the Hennessy Funds. Ticker symbols and CUSIP numbers for these Funds will also change upon the close of the transaction.
The remaining three FBR Funds will be transferred into one of the existing Hennessy Funds with a similar investment objective:
FBR Large Cap Fund → Hennessy Cornerstone Large Growth Fund
FBR Mid Cap Fund → Hennessy Cornerstone 30 Fund
FBR Small Cap Fund → Hennessy Cornerstone Growth Fund
FBR shareholders in these three Funds will receive the lowest cost Hennessy Funds shares available, and the expense ratio of each of these Funds is lower than that of the transferring FBR Fund.
The 1% redemption fee currently charged on all FBR Funds will be eliminated following the reorganization, as the Hennessy Funds do not carry redemption fees. For income tax purposes, shareholders, the FBR Funds, and the Hennessy Funds should not be required to recognize gain or loss in the reorganization.
“We are genuinely excited to welcome FBR shareholders to the Hennessy family of funds and to bring such talented portfolio managers onto our investment team,” said Neil Hennessy, President and Chief Investment Officer of Hennessy Funds. “We are thrilled to add these well-managed specialty and fixed-income funds to our product line-up, and we are eager to begin offering them to our existing Hennessy Funds shareholders,” he added.