Please click here for a prospectus.
Past performance does not guarantee future results.
To view the top 10 holdings of the Hennessy BP Midstream Fund, click here. Fund holdings are subject to change and are not recommendations to buy or sell any security.
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. Funds that concentrate in a single sector may be subject to a higher degree of risk. Energy-related companies are subject to specific risks, including fluctuations in commodity prices and consumer demand, substantial government regulation, and depletion of reserves.
Master Limited Partnerships (MLPs) and MLP investments have unique characteristics. The 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 the 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. The 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 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 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.
A significant portion of the Fund’s distributions to shareholders will be characterized as a “return of capital” because of its MLP investments.
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. EBITDA is the acronym for earnings before interest, taxes, depreciation, amortization, and it is a measure of a company’s operating performance. DOE refers to the Department of Energy. EIA refers to the U.S.Energy Information Administration. FERC refers to the Federal Energy Regulatory Commission.
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. 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.
References to other funds should not be interpreted as an offer of these securities.
The Hennessy BP Midstream Fund is distributed by Quasar Distributors, LLC. Quasar Distributors, LLC is not affiliated with BP Capital Fund Advisors.