NPORT-EX 2 cs_value.htm

Hennessy Cornerstone Value Fund
                  
Schedule of Investments
                  
January 31, 2023 (Unaudited)
                  
                   
   
Number of
          
% of
  
   
Shares
    
Value
    
Net Assets
  
COMMON STOCKS - 96.92%
                  
Communication Services - 6.47%
                  
AT&T, Inc.
    
252,060
    
$
5,134,462
      
1.69
%
BCE, Inc. (b)
    
108,000
      
5,108,400
      
1.68
%
Paramount Global
    
160,400
      
3,714,864
      
1.22
%
Verizon Communications, Inc.
    
114,300
      
4,751,451
      
1.57
%
Warner Bros. Discovery, Inc. (a)
    
63,542
      
941,693
      
0.31
%
             
19,650,870
      
6.47
%
Consumer Staples - 19.95%
                        
Altria Group, Inc.
    
111,700
      
5,030,968
      
1.66
%
British American Tobacco PLC - ADR (b)
    
139,500
      
5,369,355
      
1.77
%
Colgate-Palmolive Co.
    
78,700
      
5,865,511
      
1.93
%
General Mills, Inc.
    
92,900
      
7,279,644
      
2.40
%
Haleon PLC- ADR (a)(b)
    
136,300
      
1,104,030
      
0.36
%
PepsiCo, Inc.
    
35,900
      
6,139,618
      
2.02
%
Philip Morris International, Inc.
    
62,000
      
6,462,880
      
2.13
%
The Coca-Cola Co.
    
96,400
      
5,911,248
      
1.94
%
The Kraft Heinz Co.
    
155,200
      
6,290,256
      
2.07
%
Unilever PLC - ADR (b)
    
129,500
      
6,617,450
      
2.18
%
Walgreens Boots Alliance, Inc.
    
123,200
      
4,541,152
      
1.49
%
             
60,612,112
      
19.95
%
Energy - 22.82%
                        
BP PLC - ADR (b)
    
195,900
      
7,097,457
      
2.34
%
Canadian Natural Resources Ltd. (b)
    
93,300
      
5,732,352
      
1.89
%
Chevron Corp.
    
35,475
      
6,173,359
      
2.03
%
ConocoPhillips
    
56,800
      
6,922,216
      
2.28
%
Devon Energy Corp.
    
95,000
      
6,007,800
      
1.98
%
EOG Resources, Inc.
    
47,700
      
6,308,325
      
2.08
%
Exxon Mobil Corp.
    
71,010
      
8,237,870
      
2.71
%
Marathon Petroleum Corp.
    
73,000
      
9,381,960
      
3.09
%
Suncor Energy, Inc. (b)
    
179,900
      
6,246,128
      
2.05
%
TotalEnergies SE - ADR (b)
    
116,000
      
7,196,640
      
2.37
%
             
69,304,107
      
22.82
%
Financials - 17.05%
                        
Aflac, Inc.
    
92,100
      
6,769,350
      
2.23
%
Citigroup, Inc.
    
102,500
      
5,352,550
      
1.76
%
JPMorgan Chase & Co.
    
41,800
      
5,850,328
      
1.93
%
Manulife Financial Corp.(b)
    
284,000
      
5,623,200
      
1.85
%
MetLife, Inc.
    
84,900
      
6,199,398
      
2.04
%
Morgan Stanley
    
63,000
      
6,131,790
      
2.02
%
Royal Bank of Canada (b)
    
51,500
      
5,271,540
      
1.73
%
The Bank of New York Mellon Corp.
    
111,900
      
5,658,783
      
1.86
%
Toronto-Dominion Bank (b)
    
71,500
      
4,949,230
      
1.63
%
             
51,806,169
      
17.05
%
Health Care - 13.91%
                        
AbbVie, Inc.
    
36,500
      
5,392,875
      
1.78
%
Amgen, Inc.
    
24,700
      
6,234,280
      
2.05
%
Bristol-Myers Squibb Co.
    
82,200
      
5,971,830
      
1.97
%
Gilead Sciences, Inc.
    
97,900
      
8,217,726
      
2.70
%
GSK PLC - ADR (b)
    
106,360
      
3,750,253
      
1.23
%
Merck & Co., Inc.
    
73,800
      
7,926,858
      
2.61
%
Pfizer, Inc.
    
107,700
      
4,756,032
      
1.57
%
             
42,249,854
      
13.91
%
Industrials - 3.12%
                        
3M Co.
    
39,300
      
4,522,644
      
1.49
%
United Parcel Service, Inc., Class B
    
26,700
      
4,945,641
      
1.63
%
             
9,468,285
      
3.12
%
Information Technology - 11.80%
                        
Cisco Systems, Inc.
    
104,300
      
5,076,281
      
1.67
%
Corning, Inc.
    
154,500
      
5,347,245
      
1.76
%
Hewlett Packard Enterprise Co.
    
342,400
      
5,522,912
      
1.82
%
HP, Inc.
    
155,500
      
4,531,270
      
1.49
%
Intel Corp.
    
123,200
      
3,481,632
      
1.15
%
International Business Machines Corp.
    
45,600
      
6,143,688
      
2.02
%
Texas Instruments, Inc.
    
32,400
      
5,741,604
      
1.89
%
             
35,844,632
      
11.80
%
Materials - 1.80%
                        
Dow, Inc.
    
92,200
      
5,472,070
      
1.80
%
Total Common Stocks (Cost $255,241,049)
            
294,408,099
      
96.92
%
                           
SHORT-TERM INVESTMENTS - 2.57%
                        
Money Market Funds - 2.57%
                        
First American Government Obligations Fund, Institutional Class, 4.14% (c)
    
7,793,433
      
7,793,433
      
2.57
%
Total Short-Term Investments (Cost $7,793,433)
            
7,793,433
      
2.57
%
                           
Total Investments (Cost $263,034,482) - 99.49%
            
302,201,532
      
99.49
%
Other Assets in Excess of Liabilities - 0.51%
            
1,552,242
      
0.51
%
TOTAL NET ASSETS - 100.00%
          
$
303,753,774
      
100.00
%

Percentages are stated as a percent of net assets.
                        
                         
ADR — American Depositary Receipt
                        
PLC — Public Limited Company
                        
(a)
Non-income-producing security.
                        
(b)
U.S.-traded security of a foreign corporation.
                        
(c)
The rate listed is the fund's seven-day yield as of January 31, 2023.
                  
                          
Note: For presentation purposes, the Fund has grouped some of the industry categories. For purposes of categorizing securities for compliance with Section 8(b)(1) of the Investment Company Act of 1940, as amended, the Fund uses more specific industry classifications.
  

                       
The Global Industry Classification Standard (GICS®) was developed by and is the exclusive property and a service mark of MSCI, Inc. and Standard & Poor's Financial Services LLC. It has been licensed for use by the Hennessy Funds.
  


Summary of Fair Value Exposure as of January 31, 2023
The Fund follows its valuation policies and procedures in determining its net asset value ("NAV") and, in preparing these financial statements, the fair value accounting standards that establish an authoritative definition of fair value and set out a hierarchy for measuring fair value. These standards require additional disclosures about the various inputs and valuation techniques used to develop the measurements of fair value and a discussion of changes in valuation techniques and related inputs during the period. These inputs are summarized in the three broad levels listed below:

 
Level 1 – Unadjusted, quoted prices in active markets for identical instruments that the Fund has the ability to access at the date of measurement.
 
 
 
Level 2 – Other significant observable inputs (including, but not limited to, quoted prices in active markets for similar instruments, quoted prices in markets that are not active for identical or similar instruments, and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets, such as interest rates, prepayment speeds, credit risk curves, default rates, and similar data).
 
 
 
Level 3 – Significant unobservable inputs (including the Fund’s own assumptions about what market participants would use to price the asset or liability based on the best available information) when observable inputs are unavailable.

The following is a description of the valuation techniques applied to the Fund’s major categories of assets and liabilities on a recurring basis:

Equity Securities – Equity securities, including common stocks, preferred stocks, foreign-issued common stocks, exchange-traded funds, closed-end mutual funds, partnerships, rights, and real estate investment trusts, that are traded on a securities exchange for which a last-quoted sales price is readily available generally are valued at the last sales price as reported by the primary exchange on which the securities are listed. Securities listed on The Nasdaq Stock  Market (“Nasdaq”) generally are valued at the Nasdaq Official Closing Price, which may differ from the last sales price reported. Securities traded on a securities exchange for which a last-quoted sales price is not readily available generally are valued at the mean between the bid and ask prices. To the extent these securities are actively traded and valuation adjustments are not applied, they are classified in Level 1 of the fair value hierarchy. Securities traded on foreign exchanges generally are not valued at the same time the Fund calculates its NAV because most foreign markets close well before such time. The earlier close of most foreign markets gives rise to the possibility that significant events, including broad market moves, may have occurred in the interim. In certain circumstances, it may be determined that a foreign security needs to be fair valued because it appears that the value of the security might have been materially affected by events occurring after the close of the market in which the security is principally traded, but before the time the Fund calculates its NAV, such as by a development that affects an entire market or region (e.g., a weather-related event) or a potentially global development (e.g., a terrorist attack that may be expected to have an effect on investor expectations worldwide).

Registered Investment Companies – Investments in open-end registered investment companies, commonly referred to as mutual funds, generally are priced at the ending NAV provided by the applicable mutual fund’s service agent and are classified in Level 1 of the fair value hierarchy.

Debt Securities – Debt securities, including corporate bonds, asset-backed securities, mortgage-backed securities, municipal bonds, U.S. Treasuries, and U.S. government agency issues, are generally valued at market  on the basis of valuations furnished by an independent pricing service that utilizes both dealer-supplied valuations and formula-based techniques. The pricing service may consider recently executed transactions in securities of the issuer or comparable issuers, market price quotations (where observable), bond spreads, and fundamental data relating to the issuer. In addition, the model may incorporate observable market data, such as reported sales of similar securities, broker quotes, yields, bids, offers, and reference data. Certain securities are valued primarily using dealer quotations. These securities are generally classified in Level 2 of the fair value hierarchy.

Short-Term Securities – Short-term equity investments, including money market funds, are valued in the manner specified above for equity securities. Short-term debt investments with an original term to maturity of 60 days or less are valued at amortized cost, which approximates fair market value. If the original term to maturity of a short-term debt investment exceeds 60 days, then the values as of the 61st day prior to maturity are amortized. Amortized cost is not used if its use would be inappropriate due to credit or other impairments of the issuer, in which case the security’s fair value would be determined as described below. Short-term securities are generally classified in Level 1 or Level 2 of the fair value hierarchy depending on the inputs used and market activity levels for specific securities.

If market quotations are not readily available or if a significant event has occurred that indicates the closing price of a security no longer represents the true value of that security, any security or other asset will be valued at its fair value in accordance with Rule 2a-5 under the 1940 Act as determined under the fair value procedures of Hennessy Advisors, Inc., the Fund’s investment advisor (the “Advisor”), subject to oversight by the Board of Trustees of the Fund (the “Board”). Fair value pricing determinations are made in good faith in accordance with these procedures. There are numerous criteria considered in determining a fair value of a security, such as the trading volume of a security and markets, the values of other similar securities, and news events with direct bearing on a security or markets. Fair value pricing results in an estimated price for a security that reflects the amount the Fund might reasonably expect to receive in a current sale. Depending on the relative significance of the valuation inputs, these securities may be classified in either Level 2 or Level 3 of the fair value hierarchy. The Advisor will regularly evaluate, with the assistance of the Valuation and Liquidity Committee, whether the Fund’s fair value pricing procedures continue to be appropriate in light of the specific circumstances of the Fund and the quality of prices obtained through their application of such procedures.
 

The fair value of foreign securities may be determined with the assistance of a pricing service using correlations between the movement of prices of such securities and indices of domestic securities and other appropriate indicators, such as closing market prices of relevant American Depositary Receipts or futures contracts. Using fair value pricing means the Fund’s NAV reflects the affected portfolio securities’ values as determined by the Board or its designee, pursuant to the fair value pricing procedures adopted by the Board, instead of being determined by the market. Using a fair value pricing methodology to price a foreign security may result in a value that is different from such foreign security’s most recent closing price and from the value used by other investment companies to calculate their NAVs. Such securities are generally classified in Level 2 of the fair value hierarchy. Because the Fund may invest in foreign securities, the value of the Fund’s portfolio securities may change on days when a shareholder is unable to purchase or redeem Fund shares.


The Fund has performed an analysis of all existing investments to determine the significance and character of all inputs to their fair value determinations. Various inputs are used to determine the value of the Fund’s investments. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. Details related to the fair value hierarchy of the Fund’s securities as of January 31, 2023, are as follows:

Common Stocks
  
Level 1
    
Level 2
    
Level 3
    
Total
Communication Services
  
$
19,650,870
    
$
–
    
$
–
    
$
19,650,870
Consumer Staples
    
60,612,112
      
–
      
–
      
60,612,112
Energy
    
69,304,107
      
–
      
–
      
69,304,107
Financials
    
51,806,169
      
–
      
–
      
51,806,169
Health Care
    
42,249,854
      
–
      
–
      
42,249,854
Industrials
    
9,468,285
      
–
      
–
      
9,468,285
Information Technology
    
35,844,632
      
–
      
–
      
35,844,632
Materials
    
5,472,070
      
–
      
–
      
5,472,070
Total Common Stocks
  
$
294,408,099
    
$
–
    
$
–
    
$
294,408,099
                               
Short-Term Investments
                              
Money Market Funds
  
$
7,793,433
    
$
–
    
$
–
    
$
7,793,433
Total Short-Term Investments
  
$
7,793,433
    
$
–
    
$
–
    
$
7,793,433
                               
Total Investments
  
$
302,201,532
    
$
–
    
$
–
    
$
302,201,532