N-Q 1 hft_nq.htm QUARTERLY NOTICE OF PORTFOLIO HOLDINGS
 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549

FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF
 REGISTERED MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number (811-07168)


Hennessy Funds Trust
 (Exact name of registrant as specified in charter)


7250 Redwood Blvd., Suite 200
Novato, CA 94945
 (Address of principal executive offices) (Zip code)

Neil J. Hennessy
Hennessy Advisors, Inc.
7250 Redwood Blvd., Suite 200
Novato, CA 94945
 (Name and address of agent for service)

800-966-4354
Registrant’s telephone number, including area code


Date of fiscal year end: October 31, 2018

Date of reporting period:  July 31, 2018


Item 1. Schedule of Investments.

Hennessy Cornerstone Growth Fund
                  
Schedule of Investments
                  
July 31, 2018 (Unaudited)
                  
   
Number of
          
% of
  
   
Shares
    
Value
    
Net Assets
  
COMMON STOCKS - 96.39%
                  
Consumer Discretionary - 28.33%
                  
Best Buy Co., Inc.
    
51,000
    
$
3,826,530
      
1.93
%
Boot Barn Holdings, Inc. (a)
    
212,600
      
4,972,714
      
2.50
%
Burlington Stores, Inc. (a)
    
29,800
      
4,553,738
      
2.29
%
Callaway Golf Co.
    
231,100
      
4,446,364
      
2.24
%
Crocs, Inc. (a)
    
268,400
      
4,860,724
      
2.45
%
KB Home
    
118,000
      
2,802,500
      
1.41
%
Kohl’s Corp.
    
56,900
      
4,203,203
      
2.12
%
Lear Corp.
    
18,800
      
3,386,444
      
1.71
%
Live Nation Entertainment, Inc. (a)
    
76,200
      
3,755,136
      
1.89
%
Noodles & Co. (a)
    
304,600
      
3,183,070
      
1.60
%
Penn National Gaming, Inc. (a)
    
132,900
      
4,259,445
      
2.15
%
Regis Corp. (a)
    
219,600
      
3,834,216
      
1.93
%
Restoration Hardware Holdings, Inc. (a)
    
26,400
      
3,586,704
      
1.81
%
Turtle Beach Corp. (a)
    
167,700
      
4,559,763
      
2.30
%
             
56,230,551
      
28.33
%
Consumer Staples - 5.17%
                        
Nomad Foods Ltd. (a)(b)
    
214,100
      
4,067,900
      
2.05
%
Sprouts Farmers Market, Inc. (a)
    
138,200
      
2,969,918
      
1.50
%
The Chefs’ Warehouse, Inc. (a)
    
119,500
      
3,220,525
      
1.62
%
             
10,258,343
      
5.17
%
Energy - 8.87%
                        
CVR Energy, Inc.
    
111,700
      
4,388,693
      
2.21
%
CVR Refining LP
    
153,000
      
3,488,400
      
1.76
%
HollyFrontier Corp.
    
59,500
      
4,437,510
      
2.24
%
Legacy Reserves LP (a)
    
628,900
      
3,245,124
      
1.63
%
Pioneer Energy Services Corp. (a)
    
617,100
      
2,036,430
      
1.03
%
             
17,596,157
      
8.87
%
Financials - 11.26%
                        
Enova International, Inc. (a)
    
161,500
      
5,006,500
      
2.52
%
EZCORP, Inc., Class A (a)
    
273,500
      
3,131,575
      
1.58
%
LPL Financial Holdings, Inc.
    
57,100
      
3,785,159
      
1.91
%
PennyMac Financial Services, Inc., Class A (a)
    
147,300
      
2,820,795
      
1.42
%
Progressive Corp.
    
63,100
      
3,786,631
      
1.91
%
The Carlyle Group LP
    
157,000
      
3,822,950
      
1.92
%
             
22,353,610
      
11.26
%
Health Care - 11.97%
                        
AMN Healthcare Services, Inc. (a)
    
63,400
      
3,835,700
      
1.93
%
Anthem, Inc.
    
15,600
      
3,946,800
      
1.99
%
Centene Corp. (a)
    
36,000
      
4,691,880
      
2.36
%
Providence Service Corp. (a)
    
56,700
      
3,973,536
      
2.00
%
Triple-S Management Corp., Class B (a)(b)
    
91,900
      
3,263,369
      
1.65
%
UnitedHealth Group, Inc.
    
16,000
      
4,051,520
      
2.04
%
             
23,762,805
      
11.97
%
Industrials - 15.14%
                        
ArcBest Corp.
    
76,000
      
3,537,800
      
1.79
%
BlueLinx Holdings, Inc. (a)
    
89,800
      
3,059,486
      
1.54
%
CBIZ, Inc. (a)
    
201,100
      
4,424,200
      
2.23
%
CNH Industrial N.V. (b)
    
255,800
      
2,997,976
      
1.51
%
Insperity, Inc.
    
55,300
      
5,259,030
      
2.65
%
MasTec, Inc. (a)
    
71,300
      
3,319,015
      
1.67
%
SPX FLOW, Inc. (a)
    
76,100
      
3,616,272
      
1.82
%
XPO Logistics, Inc. (a)
    
38,400
      
3,829,248
      
1.93
%
             
30,043,027
      
15.14
%
Information Technology - 4.64%
                        
Comtech Telecommunications Corp.
    
154,400
      
5,187,840
      
2.61
%
Mantech International Corp., Class A
    
67,300
      
4,027,905
      
2.03
%
             
9,215,745
      
4.64
%
 
Materials - 11.01%
                        
Boise Cascade Co.
    
83,100
      
3,594,075
      
1.81
%
Constellium N.V., Class A (a)(b)
    
295,900
      
3,876,290
      
1.95
%
Huntsman Corp.
    
107,500
      
3,604,475
      
1.82
%
Schnitzer Steel Industries, Inc., Class A
    
103,000
      
3,393,850
      
1.71
%
Verso Corp. (a)
    
205,900
      
4,297,133
      
2.17
%
Warrior Met Coal, Inc.
    
119,300
      
3,086,291
      
1.55
%
             
21,852,114
      
11.01
%
Total Common Stocks (Cost $179,953,623)
            
191,312,352
      
96.39
%
                         
SHORT-TERM INVESTMENTS - 3.81%
                        
Money Market Funds - 3.81%
                        
Fidelity Government Portfolio, Institutional Class, 1.80% (c)
    
7,555,239
      
7,555,239
      
3.81
%
Total Short-Term Investments (Cost $7,555,239)
            
7,555,239
      
3.81
%
                         
Total Investments (Cost $187,508,862) - 100.20%
            
198,867,591
      
100.20
%
Liabilities in Excess of Other Assets - (0.20)%
            
(389,742
)
    
(0.20
)%
TOTAL NET ASSETS - 100.00%
          
$
198,477,849
      
100.00
%
 
Percentages are stated as a percent of net assets.
              
 
                
(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 July 31, 2018.
            
                 
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.
 
Summary of Fair Value Exposure at July 31, 2018
              
 
The Fund follows fair valuation 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 valuationtechniques 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.
                 
Following is a description of the valuation techniques applied to the Fund’s major categories of assets and liabilities measured at fair value 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 will generally be 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”) will generally be 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 will generally be 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 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 registered investment companies (e.g., mutual funds) are generally priced at the ending NAV provided by the applicable registered investment company’s service agent and will be 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.  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 exceeded 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 market hierarchy depending on the inputs used and market activity levels for specific securities.
 
The Board of Trustees of the Fund (the “Board”) has adopted fair value pricing procedures that are followed when a price for a security is 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.  Fair value pricing determinations are made in good faith in accordance with these procedures. There are numerous criteria that will be given consideration 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 fair valuation 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.  The effect of using fair value pricing is that the Fund’s NAV will reflect the affected portfolio securities’ values as determined by the Board or its designee 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 and are generally classified in Level 2 prices of the fair valuation hierarchy.  Because the Fund may invest in foreign securities, the value of the Fund’s portfolio securities may change on days when you will not be able to purchase or redeem your shares. 
 
The Board has delegated day-to-day valuation matters to a Valuation Committee comprised of one or more representatives from Hennessy Advisors, Inc., the Fund’s investment advisor.  The function of the Valuation Committee is to value securities where current and reliable market quotations are not readily available.  All actions taken by the Valuation Committee are reviewed by the Board.
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 valuation hierarchy of the Fund’s securities as of July 31, 2018, are as follows:
 
  
Level 1
    
Level 2
    
Level 3
    
Total
  
Common Stocks
                      
Consumer Discretionary
  
$
56,230,551
    
$
–
    
$
–
    
$
56,230,551
  
Consumer Staples
    
10,258,343
      
–
      
–
      
10,258,343
  
Energy
    
17,596,157
      
–
      
–
      
17,596,157
  
Financials
    
22,353,610
      
–
      
–
      
22,353,610
  
Health Care
    
23,762,805
      
–
      
–
      
23,762,805
  
Industrials
    
30,043,027
      
–
      
–
      
30,043,027
  
Information Technology
    
9,215,745
      
–
      
–
      
9,215,745
  
Materials
    
21,852,114
      
–
      
–
      
21,852,114
  
Total Common Stocks
  
$
191,312,352
    
$
–
    
$
–
    
$
191,312,352
  
                                 
Short-Term Investments
                                
Money Market Funds
  
$
7,555,239
    
$
–
    
$
–
    
$
7,555,239
  
Total Short-Term Investments
  
$
7,555,239
    
$
–
    
$
–
    
$
7,555,239
  
                                 
Total Investments
  
$
198,867,591
    
$
–
    
$
–
    
$
198,867,591
  
                                 
 
Level 3 Reconciliation Disclosure
                                
Following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value during the period.
          
                                 
  
Rights
                          
Balance as of October 31, 2017
  
$
55
                          
Accrued discounts/premiums
    
-
                          
Realized gain (loss)
    
-
                          
Change in unrealized appreciation (depreciation)
    
-
                          
Purchases
    
-
                          
(Sales/Expiration)*
    
(55
)
                        
Transfer in and/or out of Level 3
    
-
                          
Balance as of July 31, 2018
  
$
-
                          
                                 
Change in unrealized appreciation/depreciation during the period for
                          
Level 3 investments held at July 31, 2018
  
$
-
                          
                                 
*The rights were acquired in a past merger. These rights expired during the period and were removed from the Fund’s holdings on July 25, 2018.
  



Hennessy Focus Fund
                  
Schedule of Investments
                  
July 31, 2018 (Unaudited)
                  
   
Number of
          
% of
  
   
Shares
    
Value
    
Net Assets
  
COMMON STOCKS - 78.76%
                  
Consumer Discretionary - 27.65%
                  
CarMax, Inc. (a)
    
2,962,712
    
$
221,255,332
      
8.96
%
NVR, Inc. (a)
    
33,974
      
93,748,875
      
3.79
%
O’Reilly Automotive, Inc. (a)
    
739,081
      
226,158,786
      
9.15
%
Twenty First Century Fox, Inc.
    
3,155,592
      
142,001,640
      
5.75
%
             
683,164,633
      
27.65
%
Financials - 28.56%
                        
Aon PLC (b)
    
1,179,036
      
169,250,618
      
6.85
%
Encore Capital Group, Inc. (a)(d)
    
2,258,784
      
81,542,102
      
3.30
%
Markel Corp. (a)
    
186,140
      
217,783,800
      
8.82
%
Marlin Business Services Corp. (d)
    
1,010,273
      
31,116,408
      
1.26
%
The Charles Schwab Corp.
    
4,029,065
      
205,724,059
      
8.33
%
             
705,416,987
      
28.56
%
Industrials - 14.21%
                        
American Woodmark Corp. (a)(d)
    
1,350,360
      
112,687,542
      
4.56
%
Ametek, Inc.
    
459,822
      
35,774,152
      
1.45
%
Hexcel Corp.
    
2,577,037
      
177,841,323
      
7.20
%
Mistras Group, Inc. (a)
    
1,171,870
      
24,656,145
      
1.00
%
             
350,959,162
      
14.21
%
Information Technology - 8.34%
                        
Alphabet, Inc., Class A (a)
    
21,092
      
25,884,524
      
1.05
%
Alphabet, Inc., Class C (a)
    
108,017
      
131,484,773
      
5.32
%
Facebook, Inc., Class A (a)
    
282,537
      
48,760,236
      
1.97
%
             
206,129,533
      
8.34
%
Total Common Stocks (Cost $871,167,963)
            
1,945,670,315
      
78.76
%
                         
REITS - 19.41%
                        
Financials - 19.41%
                        
American Tower Corp., Class A
    
1,942,080
      
287,893,939
      
11.66
%
Brookfield Asset Management, Inc. (b)
    
4,543,328
      
191,546,709
      
7.75
%
Total REITS (Cost $231,169,071)
            
479,440,648
      
19.41
%
                         
SHORT-TERM INVESTMENTS - 1.81%
                        
Money Market Funds - 1.81%
                        
Fidelity Government Portfolio, Institutional Class, 1.80% (c)
    
44,742,195
      
44,742,195
      
1.81
%
Total Short-Term Investments (Cost $44,742,195)
            
44,742,195
      
1.81
%
                         
Total Investments (Cost $1,147,079,229) - 99.98%
            
2,469,853,158
      
99.98
%
Other Assets in Excess of Liabilities - 0.02%
            
413,762
      
0.02
%
TOTAL NET ASSETS - 100.00%
          
$
2,470,266,920
      
100.00
%
                         
Percentages are stated as a percent of net assets.
                        
 
PLC
  
Public Limited Company
                        
REIT
  
Real Estate Investment Trust
                        
(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 July 31, 2018.
                    
(d)
  
Investment represents five percent or more of the outstanding voting securities of the issuer, and is or was an affiliate of the Hennessy Focus Fund, as defined in the Investment Company Act of 1940, as amended, at or during the nine-month period ended July 31, 2018. Details of transactions with these affiliated companies for the nine-month period ended July 31, 2018, are as follows:
  
   
Issuer
  
American
Woodmark Corp.
    
Encore Capital
Group, Inc.
    
Marlin Business
Services Corp.
        
     
Beginning Cost
  
$
54,953,784
    
$
73,525,403
    
$
15,865,289
        
     
Purchase Cost
  
$
10,108,023
    
$
-
    
$
-
          
     
Sales Cost
  
$
-
    
$
-
    
$
-
          
     
Ending Cost
  
$
65,061,807
    
$
73,525,403
    
$
15,865,289
          
     
Dividend Income
  
$
-
    
$
-
    
$
424,315
          
     
Net change in unrealized appreciation
  
$
(18,012,154
)
  
$
(23,378,414
)
  
$
8,991,430
          
     
Realized Gain/Loss
  
$
-
    
$
-
    
$
-
          
     
Shares
    
1,350,360
      
2,258,784
      
1,010,273
          
     
Market Value
  
$
112,687,542
    
$
81,542,102
    
$
31,116,408
          
                                       
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.
  
 
 
Summary of Fair Value Exposure at July 31, 2018
              
 
The Fund follows fair valuation 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 valuationtechniques 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.
                 
Following is a description of the valuation techniques applied to the Fund’s major categories of assets and liabilities measured at fair value 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 will generally be 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”) will generally be 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 will generally be 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 securityneeds 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 registered investment companies (e.g., mutual funds) are generally priced at the ending NAV provided by the applicable registered investment company’s service agent and will be 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.  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 exceeded 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 market hierarchy depending on the inputs used and market activity levels for specific securities.
 
The Board of Trustees of the Fund (the “Board”) has adopted fair value pricing procedures that are followed when a price for a security is 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.  Fair value pricing determinations are made in good faith in accordance with these procedures. There are numerous criteria that will be given consideration 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 fair valuation 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.  The effect of using fair value pricing is that the Fund’s NAV will reflect the affected portfolio securities’ values as determined by the Board or its designee 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 and are generally classified in Level 2 prices of the fair valuation hierarchy.  Because the Fund may invest in foreign securities, the value of the Fund’s portfolio securities may change on days when you will not be able to purchase or redeem your shares. 
 
The Board has delegated day-to-day valuation matters to a Valuation Committee comprised of one or more representatives from Hennessy Advisors, Inc., the Fund’s investment advisor.  The function of the Valuation Committee is to value securities where current and reliable market quotations are not readily available.  All actions taken by the Valuation Committee are reviewed by the Board.
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 valuation hierarchy of the Fund’s securities as of July 31, 2018, are as follows:
 
   
Level 1
    
Level 2
    
Level 3
    
Total
  
Common Stocks
                        
Consumer Discretionary
  
$
683,164,633
    
$
–
    
$
–
    
$
683,164,633
  
Financials
    
705,416,987
      
–
      
–
      
705,416,987
  
Industrials
    
350,959,162
      
–
      
–
      
350,959,162
  
Information Technology
    
206,129,533
      
–
      
–
      
206,129,533
  
Total Common Stocks
  
$
1,945,670,315
    
$
–
    
$
–
    
$
1,945,670,315
  
                                 
REITS
                                
Financials
  
$
479,440,648
    
$
–
    
$
–
    
$
479,440,648
  
Total REITS
  
$
479,440,648
    
$
–
    
$
–
    
$
479,440,648
  
                                 
Short-Term Investments
                                
Money Market Funds
  
$
44,742,195
    
$
–
    
$
–
    
$
44,742,195
  
Total Short-Term Investments
  
$
44,742,195
    
$
–
    
$
–
    
$
44,742,195
  
                                 
Total Investments
  
$
2,469,853,158
    
$
–
    
$
–
    
$
2,469,853,158
  
 
 
Hennessy Cornerstone Mid Cap 30  Fund
                  
Schedule of Investments
                  
July 31, 2018 (Unaudited)
                  
   
Number of
          
% of
  
   
Shares
    
Value
    
Net Assets
  
COMMON STOCKS - 96.10%
                  
Consumer Discretionary - 27.72%
                  
Dana, Inc.
    
927,000
    
$
19,791,450
      
2.05
%
KB Home
    
1,031,592
      
24,500,310
      
2.54
%
LGI Homes, Inc. (a)
    
465,929
      
24,083,870
      
2.50
%
Penn National Gaming, Inc. (a)
    
1,082,358
      
34,689,574
      
3.59
%
Pinnacle Entertainment, Inc. (a)
    
1,101,123
      
36,601,328
      
3.79
%
PulteGroup, Inc.
    
935,300
      
26,646,697
      
2.76
%
Scientific Games Corp. (a)
    
607,013
      
29,166,975
      
3.02
%
Thor Industries, Inc.
    
223,540
      
21,202,769
      
2.20
%
Visteon Corp. (a)
    
229,200
      
26,834,736
      
2.78
%
Winnebago Industries, Inc.
    
602,300
      
24,031,770
      
2.49
%
             
267,549,479
      
27.72
%
Consumer Staples - 1.98%
                        
Sanderson Farms, Inc.
    
189,600
      
19,117,368
      
1.98
%
                         
Energy - 9.07%
                        
CVR Energy, Inc.
    
931,462
      
36,597,142
      
3.79
%
HollyFrontier Corp.
    
683,200
      
50,953,056
      
5.28
%
             
87,550,198
      
9.07
%
Financials - 9.72%
                        
American Equity Investment Life Holding Co.
    
1,014,400
      
36,244,512
      
3.76
%
Encore Capital Group, Inc. (a)
    
609,549
      
22,004,719
      
2.28
%
Kemper Corp.
    
445,500
      
35,550,900
      
3.68
%
             
93,800,131
      
9.72
%
Industrials - 34.66%
                        
ASGN, Inc. (a)
    
473,840
      
42,787,752
      
4.43
%
Builders FirstSource, Inc. (a)
    
1,650,200
      
29,588,086
      
3.06
%
Korn/Ferry International
    
698,000
      
46,054,040
      
4.77
%
Meritor, Inc. (a)
    
1,123,171
      
23,137,323
      
2.40
%
Rush Enterprises, Inc., Class A (a)
    
580,000
      
26,152,200
      
2.71
%
SiteOne Landscape Supply, Inc. (a)
    
463,000
      
41,281,080
      
4.28
%
The Brink’s Co.
    
367,865
      
29,374,020
      
3.04
%
The Manitowoc Co., Inc. (a)
    
717,100
      
18,995,979
      
1.97
%
TriNet Group, Inc. (a)
    
705,700
      
38,001,945
      
3.94
%
XPO Logistics, Inc. (a)
    
393,100
      
39,199,932
      
4.06
%
             
334,572,357
      
34.66
%
Materials - 9.57%
                        
Alcoa Corp. (a)
    
630,000
      
27,260,100
      
2.83
%
Boise Cascade Co.
    
795,400
      
34,401,050
      
3.56
%
Huntsman Corp.
    
916,400
      
30,726,892
      
3.18
%
             
92,388,042
      
9.57
%
Utilities - 3.38%
                        
NRG Energy, Inc.
    
1,031,800
      
32,677,106
      
3.38
%
Total Common Stocks (Cost $867,765,196)
            
927,654,681
      
96.10
%
                         
SHORT-TERM INVESTMENTS - 4.12%
                        
Money Market Funds - 4.12%
                        
Fidelity Government Portfolio, Institutional Class, 1.80% (b)
    
39,732,806
      
39,732,806
      
4.12
%
Total Short-Term Investments (Cost $39,732,806)
            
39,732,806
      
4.12
%
                         
Total Investments (Cost $907,498,002) - 100.22%
            
967,387,487
      
100.22
%
Liabilities in Excess of Other Assets - (0.22)%
            
(2,122,424
)
    
(0.22
)%
TOTAL NET ASSETS - 100.00%
          
$
965,265,063
      
100.00
%
 
Percentages are stated as a percent of net assets.
                
 
                  
(a)
Non-income producing security.
                
(b)
The rate listed is the fund’s seven-day yield as of July 31, 2018.
              
 
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. 
 
Summary of Fair Value Exposure at July 31, 2018
              
 
The Fund follows fair valuation 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 valuationtechniques 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.
                 
Following is a description of the valuation techniques applied to the Fund’s major categories of assets and liabilities measured at fair value on a recurring basis.
 
Equity Securities – Equity securities, including common stocks, preferred 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 will generally be 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”) will generally be 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 will generally be 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. 
 
Registered Investment Companies – Investments in registered investment companies (e.g., mutual funds) are generally priced at the ending NAV provided by the applicable registered investment company’s service agent and will be 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.  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 exceeded 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 market hierarchy depending on the inputs used and market activity levels for specific securities.
 
The Board of Trustees of the Fund (the “Board”) has adopted fair value pricing procedures that are followed when a price for a security is 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.  Fair value pricing determinations are made in good faith in accordance with these procedures. There are numerous criteria that will be given consideration 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 Board has delegated day-to-day valuation matters to a Valuation Committee comprised of one or more representatives from Hennessy Advisors, Inc., the Fund’s investment advisor.  The function of the Valuation Committee is to value securities where current and reliable market quotations are not readily available.  All actions taken by the Valuation Committee are reviewed by the Board.
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 valuation hierarchy of the Fund’s securities as of July 31, 2018, are as follows:
 
   
Level 1
    
Level 2
    
Level 3
    
Total
  
Common Stocks
                        
Consumer Discretionary
  
$
267,549,479
    
$
–
    
$
–
    
$
267,549,479
  
Consumer Staples
    
19,117,368
      
–
      
–
      
19,117,368
  
Energy
    
87,550,198
      
–
      
–
      
87,550,198
  
Financials
    
93,800,131
      
–
      
–
      
93,800,131
  
Industrials
    
334,572,357
      
–
      
–
      
334,572,357
  
Materials
    
92,388,042
      
–
      
–
      
92,388,042
  
Utilities
    
32,677,106
      
–
      
–
      
32,677,106
  
Total Common Stocks
  
$
927,654,681
    
$
–
    
$
–
    
$
927,654,681
  
                                 
Short-Term Investments
                                
Money Market Funds
  
$
39,732,806
    
$
–
    
$
–
    
$
39,732,806
  
Total Short-Term Investments
  
$
39,732,806
    
$
–
    
$
–
    
$
39,732,806
  
                                 
Total Investments
  
$
967,387,487
    
$
–
    
$
–
    
$
967,387,487
  
 

Hennessy Cornerstone Large Growth Fund
                  
Schedule of Investments
                  
July 31, 2018 (Unaudited)
                  
   
Number of
          
% of
  
   
Shares
    
Value
    
Net Assets
  
COMMON STOCKS - 98.90%
                  
Consumer Discretionary - 24.76%
                  
AutoZone, Inc. (a)
    
4,100
    
$
2,892,673
      
1.88
%
Best Buy Co., Inc.
    
42,200
      
3,166,266
      
2.06
%
CBS Corp., Class B
    
55,800
      
2,938,986
      
1.91
%
Darden Restaurants, Inc.
    
31,500
      
3,368,610
      
2.19
%
General Motors Co.
    
70,700
      
2,680,237
      
1.74
%
Kohl’s Corp.
    
48,600
      
3,590,082
      
2.34
%
L Brands, Inc.
    
61,000
      
1,931,870
      
1.26
%
Omnicom Group, Inc.
    
37,700
      
2,594,891
      
1.69
%
Starbucks Corp.
    
53,570
      
2,806,532
      
1.83
%
Target Corp.
    
41,300
      
3,332,084
      
2.17
%
The Gap, Inc.
    
94,500
      
2,851,065
      
1.86
%
The Walt Disney Co.
    
28,700
      
3,259,172
      
2.12
%
Wyndham Hotels & Resorts, Inc.
    
25,200
      
1,461,600
      
0.95
%
Wyndham Worldwide Corp.
    
25,500
      
1,176,060
      
0.76
%
             
38,050,128
      
24.76
%
Consumer Staples - 17.97%
                        
Altria Group, Inc.
    
45,400
      
2,664,072
      
1.73
%
Campbell Soup Co.
    
64,100
      
2,621,690
      
1.71
%
Conagra Brands, Inc.
    
83,200
      
3,054,272
      
1.99
%
CVS Health Corp.
    
42,500
      
2,756,550
      
1.79
%
General Mills, Inc.
    
54,100
      
2,491,846
      
1.62
%
Kimberly-Clark Corp.
    
26,100
      
2,971,746
      
1.94
%
The Kroger Co.
    
109,100
      
3,163,900
      
2.06
%
Tyson Foods, Inc., Class A
    
39,800
      
2,294,470
      
1.49
%
Walgreens Boots Alliance, Inc.
    
43,400
      
2,934,708
      
1.91
%
Walmart, Inc.
    
29,800
      
2,659,054
      
1.73
%
             
27,612,308
      
17.97
%
Financials - 3.83%
                        
Allstate Corp.
    
32,700
      
3,110,424
      
2.03
%
Ameriprise Financial, Inc.
    
19,000
      
2,767,730
      
1.80
%
             
5,878,154
      
3.83
%
Health Care - 6.99%
                        
Centene Corp. (a)
    
28,800
      
3,753,504
      
2.44
%
Express Scripts Holding Co. (a)
    
40,700
      
3,234,022
      
2.11
%
HCA Healthcare, Inc.
    
30,200
      
3,751,746
      
2.44
%
             
10,739,272
      
6.99
%
Industrials - 20.52%
                        
American Airlines Group, Inc.
    
59,300
      
2,344,722
      
1.53
%
CSX Corp.
    
55,800
      
3,943,944
      
2.57
%
Deere & Co.
    
18,600
      
2,693,094
      
1.75
%
Delta Air Lines, Inc.
    
57,000
      
3,101,940
      
2.02
%
FedEx Corp.
    
12,400
      
3,048,788
      
1.98
%
PACCAR, Inc.
    
43,500
      
2,858,820
      
1.86
%
Southwest Airlines Co.
    
52,300
      
3,041,768
      
1.98
%
Union Pacific Corp.
    
23,098
      
3,462,159
      
2.25
%
United Continental Holdings, Inc. (a)
    
46,300
      
3,722,520
      
2.42
%
Waste Management, Inc.
    
36,800
      
3,312,000
      
2.16
%
             
31,529,755
      
20.52
%
Information Technology - 14.90%
                        
Apple, Inc.
    
18,630
      
3,545,103
      
2.31
%
Applied Materials, Inc.
    
61,200
      
2,976,156
      
1.94
%
HP, Inc.
    
145,400
      
3,355,832
      
2.18
%
Intel Corp.
    
66,250
      
3,186,625
      
2.07
%
International Business Machines Corp.
    
19,600
      
2,840,628
      
1.85
%
Lam Research Corp.
    
17,200
      
3,279,008
      
2.13
%
Micron Technology, Inc. (a)
    
70,400
      
3,716,416
      
2.42
%
             
22,899,768
      
14.90
%
 
Materials - 7.94%
                        
Eastman Chemical Co.
    
30,400
      
3,150,048
      
2.05
%
Freeport-McMoRan, Inc.
    
169,000
      
2,788,500
      
1.81
%
Nucor Corp.
    
46,800
      
3,132,324
      
2.04
%
Steel Dynamics, Inc.
    
66,400
      
3,126,776
      
2.04
%
             
12,197,648
      
7.94
%
Telecommunication Services - 1.99%
                        
Verizon Communications, Inc.
    
59,200
      
3,057,088
      
1.99
%
Total Common Stocks (Cost $139,051,680)
            
151,964,121
      
98.90
%
                         
SHORT-TERM INVESTMENTS - 1.22%
                        
Money Market Funds - 1.22%
                        
Fidelity Government Portfolio, Institutional Class, 1.80% (b)
    
1,874,069
      
1,874,069
      
1.22
%
Total Short-Term Investments (Cost $1,874,069)
            
1,874,069
      
1.22
%
                         
Total Investments (Cost $140,925,749) - 100.12%
            
153,838,190
      
100.12
%
Liabilities in Excess of Other Assets - (0.12)%
            
(185,463
)
    
(0.12
)%
TOTAL NET ASSETS - 100.00%
          
$
153,652,727
      
100.00
%
 
Percentages are stated as a percent of net assets.
              
 
                
(a)
Non-income producing security.
              
(b)
The rate listed is the fund’s seven-day yield as of July 31, 2018.
            
                 
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.
 
 
Summary of Fair Value Exposure at July 31, 2018
              
 
The Fund follows fair valuation 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 valuationtechniques 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.
                 
Following is a description of the valuation techniques applied to the Fund’s major categories of assets and liabilities measured at fair value on a recurring basis.
 
Equity Securities – Equity securities, including common stocks, preferred 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 will generally be 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”) will generally be 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 will generally be 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.
 
Registered Investment Companies – Investments in registered investment companies (e.g., mutual funds) are generally priced at the ending NAV provided by the applicable registered investment company’s service agent and will be 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.  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 exceeded 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 market hierarchy depending on the inputs used and market activity levels for specific securities.
 
The Board of Trustees of the Fund (the “Board”) has adopted fair value pricing procedures that are followed when a price for a security is 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.  Fair value pricing determinations are made in good faith in accordance with these procedures. There are numerous criteria that will be given consideration 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 Board has delegated day-to-day valuation matters to a Valuation Committee comprised of one or more representatives from Hennessy Advisors, Inc., the Fund’s investment advisor.  The function of the Valuation Committee is to value securities where current and reliable market quotations are not readily available.  All actions taken by the Valuation Committee are reviewed by the Board.
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 valuation hierarchy of the Fund’s securities as of July 31, 2018, are as follows:
 
   
Level 1
    
Level 2
    
Level 3
    
Total
  
Common Stocks
                        
Consumer Discretionary
  
$
38,050,128
    
$
–
    
$
–
    
$
38,050,128
  
Consumer Staples
    
27,612,308
      
–
      
–
      
27,612,308
  
Financials
    
5,878,154
      
–
      
–
      
5,878,154
  
Health Care
    
10,739,272
      
–
      
–
      
10,739,272
  
Industrials
    
31,529,755
      
–
      
–
      
31,529,755
  
Information Technology
    
22,899,768
      
–
      
–
      
22,899,768
  
Materials
    
12,197,648
      
–
      
–
      
12,197,648
  
Telecommunication Services
    
3,057,088
      
–
      
–
      
3,057,088
  
Total Common Stocks
  
$
151,964,121
    
$
–
    
$
–
    
$
151,964,121
  
                                 
Short-Term Investments
                                
Money Market Funds
  
$
1,874,069
    
$
–
    
$
–
    
$
1,874,069
  
Total Short-Term Investments
  
$
1,874,069
    
$
–
    
$
–
    
$
1,874,069
  
                                 
Total Investments
  
$
153,838,190
    
$
–
    
$
–
    
$
153,838,190
  



Hennessy Cornerstone Value Fund
                  
Schedule of Investments
                  
July 31, 2018 (Unaudited)
                  
   
Number of
          
% of
  
   
Shares
    
Value
    
Net Assets
  
COMMON STOCKS - 97.04%
                  
Consumer Discretionary - 9.23%
                  
Carnival Corp. (a)
    
81,300
    
$
4,816,212
      
1.65
%
Ford Motor Co.
    
530,645
      
5,327,676
      
1.82
%
General Motors Co.
    
137,300
      
5,205,043
      
1.78
%
Las Vegas Sands Corp.
    
75,100
      
5,399,690
      
1.85
%
Target Corp.
    
77,400
      
6,244,632
      
2.13
%
             
26,993,253
      
9.23
%
Consumer Staples - 15.72%
                        
Altria Group, Inc.
    
82,800
      
4,858,704
      
1.66
%
CVS Health Corp.
    
74,000
      
4,799,640
      
1.64
%
General Mills, Inc.
    
99,500
      
4,582,970
      
1.57
%
PepsiCo, Inc.
    
48,400
      
5,566,000
      
1.90
%
Philip Morris International, Inc.
    
54,300
      
4,686,090
      
1.60
%
The Coca-Cola Co.
    
122,300
      
5,702,849
      
1.95
%
The Kraft Heinz Co.
    
74,300
      
4,476,575
      
1.53
%
The Procter & Gamble Co.
    
67,400
      
5,451,312
      
1.86
%
Unilever PLC - ADR (a)
    
103,100
      
5,877,731
      
2.01
%
             
46,001,871
      
15.72
%
Energy - 25.63%
                        
BP PLC - ADR (a)
    
136,000
      
6,132,240
      
2.10
%
Canadian Natural Resources Ltd. (a)
    
170,500
      
6,247,120
      
2.13
%
Chevron Corp.
    
46,475
      
5,868,398
      
2.01
%
Equinor ASA - ADR (a)
    
248,300
      
6,570,018
      
2.25
%
Exxon Mobil Corp.
    
66,710
      
5,437,532
      
1.86
%
Marathon Petroleum Corp.
    
84,000
      
6,789,720
      
2.32
%
Occidental Petroleum Corp.
    
77,660
      
6,518,004
      
2.23
%
Phillips 66
    
56,800
      
7,005,712
      
2.39
%
Royal Dutch Shell PLC - ADR (a)
    
80,900
      
5,747,136
      
1.96
%
Schlumberger Ltd. (a)
    
79,100
      
5,340,832
      
1.83
%
Suncor Energy, Inc. (a)
    
160,600
      
6,767,684
      
2.31
%
Total S.A. - ADR (a)
    
100,300
      
6,544,575
      
2.24
%
             
74,968,971
      
25.63
%
Financials - 10.95%
                        
Bank of Nova Scotia (a)
    
87,500
      
5,184,375
      
1.77
%
HSBC Holdings PLC - ADR (a)
    
108,000
      
5,229,360
      
1.79
%
Manulife Financial Corp. (a)
    
274,200
      
5,089,152
      
1.74
%
Royal Bank of Canada (a)
    
67,900
      
5,294,163
      
1.81
%
Thomson Reuters Corp. (a)
    
134,400
      
5,564,160
      
1.90
%
Toronto-Dominion Bank (a)
    
95,700
      
5,663,526
      
1.94
%
             
32,024,736
      
10.95
%
Health Care - 16.71%
                        
Amgen, Inc.
    
31,300
      
6,152,015
      
2.10
%
Bristol-Myers Squibb Co.
    
93,000
      
5,463,750
      
1.87
%
Eli Lilly & Co.
    
71,500
      
7,064,915
      
2.41
%
Gilead Sciences, Inc.
    
69,500
      
5,409,185
      
1.85
%
GlaxoSmithKline PLC - ADR (a)
    
155,200
      
6,454,768
      
2.21
%
Johnson & Johnson
    
42,100
      
5,579,092
      
1.91
%
Merck & Co., Inc.
    
98,200
      
6,468,434
      
2.21
%
Pfizer, Inc.
    
157,200
      
6,276,996
      
2.15
%
             
48,869,155
      
16.71
%
Industrials - 7.45%
                        
Emerson Electric Co.
    
80,600
      
5,825,768
      
1.99
%
General Electric Co.
    
360,034
      
4,907,263
      
1.68
%
Johnson Controls International PLC (a)
    
148,800
      
5,581,488
      
1.91
%
United Parcel Service, Inc., Class B
    
45,700
      
5,478,973
      
1.87
%
             
21,793,492
      
7.45
%
 
Information Technology - 7.75%
                        
Cisco Systems, Inc.
    
140,110
      
5,925,252
      
2.03
%
HP, Inc.
    
249,600
      
5,760,768
      
1.97
%
Intel Corp.
    
120,900
      
5,815,290
      
1.99
%
International Business Machines Corp.
    
35,600
      
5,159,508
      
1.76
%
             
22,660,818
      
7.75
%
Telecommunication Services - 3.60%
                        
AT&T, Inc.
    
155,460
      
4,970,056
      
1.70
%
Verizon Communications, Inc.
    
107,700
      
5,561,628
      
1.90
%
             
10,531,684
      
3.60
%
Total Common Stocks (Cost $258,388,700)
            
283,843,980
      
97.04
%
                         
SHORT-TERM INVESTMENTS - 3.06%
                        
Money Market Funds - 3.06%
                        
Fidelity Government Portfolio, Institutional Class, 1.80% (b)
    
8,951,845
      
8,951,845
      
3.06
%
Total Short-Term Investments (Cost $8,951,845)
            
8,951,845
      
3.06
%
                         
Total Investments (Cost $267,340,545) - 100.10%
            
292,795,825
      
100.10
%
Liabilities in Excess of Other Assets - (0.10)%
            
(301,037
)
    
(0.10
)%
TOTAL NET ASSETS - 100.00%
          
$
292,494,788
      
100.00
%
 
Percentages are stated as a percent of net assets.
              
                 
ADR
American Depositary Receipt
              
PLC
Public Limited Company
              
(a)
U.S.-traded security of a foreign corporation.
              
(b)
The rate listed is the fund’s seven-day yield as of July 31, 2018.
            
                 
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.
 
 
Summary of Fair Value Exposure at July 31, 2018
              
 
The Fund follows fair valuation 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 valuationtechniques 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.
                 
Following is a description of the valuation techniques applied to the Fund’s major categories of assets and liabilities measured at fair value 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 will generally be 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”) will generally be 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 will generally be 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 securityneeds 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 registered investment companies (e.g., mutual funds) are generally priced at the ending NAV provided by the applicable registered investment company’s service agent and will be 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.  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 exceeded 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 market hierarchy depending on the inputs used and market activity levels for specific securities.
 
The Board of Trustees of the Fund (the “Board”) has adopted fair value pricing procedures that are followed when a price for a security is 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.  Fair value pricing determinations are made in good faith in accordance with these procedures. There are numerous criteria that will be given consideration 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 fair valuation 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.  The effect of using fair value pricing is that the Fund’s NAV will reflect the affected portfolio securities’ values as determined by the Board or its designee 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 and are generally classified in Level 2 prices of the fair valuation hierarchy.  Because the Fund may invest in foreign securities, the value of the Fund’s portfolio securities may change on days when you will not be able to purchase or redeem your shares.
 
The Board has delegated day-to-day valuation matters to a Valuation Committee comprised of one or more representatives from Hennessy Advisors, Inc., the Fund’s investment advisor.  The function of the Valuation Committee is to value securities where current and reliable market quotations are not readily available.  All actions taken by the Valuation Committee are reviewed by the Board.
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 valuation hierarchy of the Fund’s securities as of July 31, 2018, are as follows:
 
   
Level 1
    
Level 2
    
Level 3
    
Total
  
Common Stocks
                        
Consumer Discretionary
  
$
26,993,253
    
$
–
    
$
–
    
$
26,993,253
  
Consumer Staples
    
46,001,871
      
–
      
–
      
46,001,871
  
Energy
    
74,968,971
      
–
      
–
      
74,968,971
  
Financials
    
32,024,736
      
–
      
–
      
32,024,736
  
Health Care
    
48,869,155
      
–
      
–
      
48,869,155
  
Industrials
    
21,793,492
      
–
      
–
      
21,793,492
  
Information Technology
    
22,660,818
      
–
      
–
      
22,660,818
  
Telecommunication Services
    
10,531,684
      
–
      
–
      
10,531,684
  
Total Common Stocks
  
$
283,843,980
    
$
–
    
$
–
    
$
283,843,980
  
                                 
Short-Term Investments
                                
Money Market Funds
  
$
8,951,845
    
$
–
    
$
–
    
$
8,951,845
  
Total Short-Term Investments
  
$
8,951,845
    
$
–
    
$
–
    
$
8,951,845
  
                                 
Total Investments
  
$
292,795,825
    
$
–
    
$
–
    
$
292,795,825
  


 
Hennessy Total Return Fund
                  
Schedule of Investments
                  
July 31, 2018 (Unaudited)
                  
                   
   
Number of
 Shares/Par Amount
    
Value
    
% of
 Net Assets
  
COMMON STOCKS - 69.12%
                  
Consumer Staples - 12.97%
                  
The Coca-Cola Co.
    
102,100
    
$
4,760,923
      
6.79
%
The Procter & Gamble Co.
    
53,600
      
4,335,168
      
6.18
%
             
9,096,091
      
12.97
%
Energy - 14.14%
                        
Chevron Corp.
    
40,800
      
5,151,816
      
7.35
%
Exxon Mobil Corp.
    
58,400
      
4,760,184
      
6.79
%
             
9,912,000
      
14.14
%
Health Care - 13.01%
                        
Merck & Co., Inc.
    
56,100
      
3,695,307
      
5.27
%
Pfizer, Inc.
    
135,900
      
5,426,487
      
7.74
%
             
9,121,794
      
13.01
%
Industrials - 4.39%
                        
General Electric Co.
    
225,600
      
3,074,928
      
4.39
%
                         
Information Technology - 17.44%
                        
Cisco Systems, Inc.
    
137,300
      
5,806,417
      
8.28
%
Intel Corp.
    
40,300
      
1,938,430
      
2.77
%
International Business Machines Corp.
    
30,900
      
4,478,337
      
6.39
%
             
12,223,184
      
17.44
%
Telecommunication Services - 7.17%
                        
Verizon Communications, Inc.
    
97,300
      
5,024,572
      
7.17
%
Total Common Stocks (Cost $44,344,742)
            
48,452,569
      
69.12
%
                         
SHORT-TERM INVESTMENTS - 66.86%
                        
Money Market Funds - 0.69%
                        
Fidelity Government Portfolio, Institutional Class, 1.80% (a)
    
482,959
      
482,959
      
0.69
%
                         
U.S. Treasury Bills (c) - 66.17%
                        
1.880%, 08/16/2018 (b)
    
15,000,000
      
14,988,375
      
21.38
%
1.900%, 09/20/2018 (b)
    
16,500,000
      
16,456,802
      
23.48
%
1.980%, 10/18/2018 (b)
    
15,000,000
      
14,936,585
      
21.31
%
             
46,381,762
      
66.17
%
Total Short-Term Investments (Cost $46,865,005)
            
46,864,721
      
66.86
%
                         
Total Investments (Cost $91,209,747) - 135.98%
            
95,317,290
      
135.98
%
Liabilities in Excess of Other Assets - (35.98)%
            
(25,221,176
)
    
(35.98
)%
TOTAL NET ASSETS - 100.00%
          
$
70,096,114
      
100.00
%
 
Percentages are stated as a percent of net assets.
                  
 
                        
(a)
The rate listed is the fund’s seven-day yield as of July 31, 2018.
              
(b)
The rate listed is discount rate at issue.
                    
(c)
Collateral or partial collateral for securities sold subject to repurchase.
              
                         
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.
 
Summary of Fair Value Exposure at July 31, 2018
              
 
The Fund follows fair valuation 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 valuationtechniques 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.
                 
Following is a description of the valuation techniques applied to the Fund’s major categories of assets and liabilities measured at fair value on a recurring basis.
 
Equity Securities – Equity securities, including common stocks, preferred 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 will generally be 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”) will generally be 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 will generally be 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.
 
Registered Investment Companies – Investments in registered investment companies (e.g., mutual funds) are generally priced at the ending NAV provided by the applicable registered investment company’s service agent and will be 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.  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 exceeded 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 market hierarchy depending on the inputs used and market activity levels for specific securities.
 
The Board of Trustees of the Fund (the “Board”) has adopted fair value pricing procedures that are followed when a price for a security is 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.  Fair value pricing determinations are made in good faith in accordance with these procedures. There are numerous criteria that will be given consideration 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 Board has delegated day-to-day valuation matters to a Valuation Committee comprised of one or more representatives from Hennessy Advisors, Inc., the Fund’s investment advisor.  The function of the Valuation Committee is to value securities where current and reliable market quotations are not readily available.  All actions taken by the Valuation Committee are reviewed by the Board.
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 valuation hierarchy of the Fund’s securities as of July 31, 2018, are as follows:
 
   
Level 1
    
Level 2
    
Level 3
    
Total
  
Common Stocks
                        
Consumer Staples
  
$
9,096,091
    
$
–
    
$
–
    
$
9,096,091
  
Energy
    
9,912,000
      
–
      
–
      
9,912,000
  
Health Care
    
9,121,794
      
–
      
–
      
9,121,794
  
Industrials
    
3,074,928
      
–
      
–
      
3,074,928
  
Information Technology
    
12,223,184
      
–
      
–
      
12,223,184
  
Telecommunication Services
    
5,024,572
      
–
      
–
      
5,024,572
  
Total Common Stocks
  
$
48,452,569
    
$
–
    
$
–
    
$
48,452,569
  
                                 
Short-Term Investments
                                
Money Market Funds
  
$
482,959
    
$
–
    
$
–
    
$
482,959
  
U.S. Treasury Bills
    
–
      
46,381,762
      
–
      
46,381,762
  
Total Short-Term Investments
  
$
482,959
    
$
46,381,762
    
$
–
    
$
46,864,721
  
                                 
Total Investments
  
$
48,935,528
    
$
46,381,762
    
$
–
    
$
95,317,290
  
 
Schedule of Reverse Repurchase Agreements
      
 
  
 
      
                       
                       
Face Value
  
Counterparty
  
Rate
  
Principal Trade
Date
  
Maturity Date
  
Maturity Amount
  
$
8,995,000
  
Jefferies LLC
    
2.15%
 
5/17/2018
  
8/16/2018
  
$
9,043,885
  
 
9,894,500
  
Jefferies LLC
    
2.15%
 
6/22/2018
  
9/20/2018
    
9,947,683
  
 
8,995,000
  
Jefferies LLC
    
2.25%
 
7/20/2018
  
10/18/2018
    
9,045,597
  
$
27,884,500
                       
$
28,037,165
  
 
As of July 31, 2018, the fair value of securities held as collateral for reverse repurchase agreements was $30,921,172 as noted on the Schedule of Investments.
                       
Reverse repurchase agreements are carried at face value; hence, they are not included in the fair valuation hierarchy.  The face value of the reverse repurchase agreements at July 31, 2018, was $27,884,500.  Due to the short-term nature of the reverse repurchase agreements, face value approximates fair value.
The face value plus interest due at maturity is equal to $28,037,165.
            



Hennessy Equity and Income Fund
                  
Schedule of Investments
                  
July 31, 2018 (Unaudited)
                  
   
Number of
              
   
Shares/ Par Amount
    
Value
    
% of
 Net Assets
  
COMMON STOCKS - 60.79%
                  
Consumer Discretionary - 14.25%
                  
CarMax, Inc. (a)
    
80,078
    
$
5,980,225
      
2.55
%
Carnival Corp. (b)
    
96,971
      
5,744,562
      
2.44
%
Dollar Tree, Inc. (a)
    
66,256
      
6,047,848
      
2.57
%
Home Depot, Inc.
    
24,028
      
4,746,010
      
2.02
%
Lowe’s Companies, Inc.
    
20,820
      
2,068,259
      
0.88
%
NIKE, Inc., Class B
    
64,296
      
4,945,005
      
2.10
%
O’Reilly Automotive, Inc. (a)
    
12,951
      
3,963,006
      
1.69
%
             
33,494,915
      
14.25
%
Consumer Staples - 2.83%
                        
Altria Group, Inc.
    
69,608
      
4,084,598
      
1.74
%
The Coca-Cola Co.
    
55,126
      
2,570,525
      
1.09
%
             
6,655,123
      
2.83
%
Energy - 1.39%
                        
Chevron Corp.
    
25,792
      
3,256,756
      
1.39
%
Financials - 14.83%
                        
Alleghany Corp.
    
7,287
      
4,585,490
      
1.95
%
Bank of America Corp.
    
82,267
      
2,540,405
      
1.08
%
Berkshire Hathaway, Inc., Class B (a)
    
50,657
      
10,023,501
      
4.27
%
BlackRock, Inc.
    
11,415
      
5,739,005
      
2.44
%
The Progressive Corp.
    
119,622
      
7,178,516
      
3.06
%
Wells Fargo & Co.
    
83,403
      
4,778,158
      
2.03
%
             
34,845,075
      
14.83
%
Health Care - 3.00%
                        
Alexion Pharmaceuticals, Inc. (a)
    
31,445
      
4,180,927
      
1.78
%
Bristol-Myers Squibb Co.
    
48,846
      
2,869,703
      
1.22
%
             
7,050,630
      
3.00
%
Industrials - 8.58%
                        
Deere & Co.
    
26,013
      
3,766,422
      
1.60
%
FedEx Corp.
    
13,299
      
3,269,825
      
1.39
%
General Dynamics Corp.
    
20,946
      
4,184,173
      
1.78
%
Norfolk Southern Corp.
    
37,102
      
6,270,238
      
2.67
%
Southwest Airlines Co.
    
45,909
      
2,670,068
      
1.14
%
             
20,160,726
      
8.58
%
Information Technology - 11.55%
                        
Alphabet, Inc., Class C (a)
    
6,579
      
8,008,353
      
3.41
%
Apple, Inc.
    
42,110
      
8,013,112
      
3.41
%
Cisco Systems, Inc.
    
95,338
      
4,031,844
      
1.71
%
Visa, Inc., Class A
    
51,957
      
7,104,600
      
3.02
%
             
27,157,909
      
11.55
%
Materials - 3.43%
                        
Albemarle Corp.
    
42,719
      
4,024,130
      
1.71
%
NewMarket Corp.
    
9,868
      
4,040,354
      
1.72
%
             
8,064,484
      
3.43
%
Telecommunication Services - 0.93%
                        
Verizon Communications, Inc.
    
42,284
      
2,183,546
      
0.93
%
Total Common Stocks (Cost $106,249,155)
            
142,869,164
      
60.79
%
                         
PREFERRED STOCKS - 2.03%
                        
Consumer Staples - 0.09%
                        
CHS, Inc., Series 4, 7.500%, Perpetual
    
7,380
      
205,459
      
0.09
%
                         
Energy - 0.06%
                        
Enbridge, Inc., Series B, 6.375% to 04/15/2023, 3.593% to 04/15/2028, 3.843% to 04/15/2043 then 3 Month LIBOR USD + 4.593%, 04/15/2078 (b)(f)
    
5,095
      
130,024
      
0.06
%
                         
 
Financials - 1.75%
                        
Aegon N.V., 6.375%, Perpetual (b)
    
4,050
      
105,138
      
0.05
%
Arch Capital Group Ltd., Series F, 5.450%, Perpetual (b)
    
5,200
      
127,972
      
0.06
%
Axis Capital Holdings Ltd, Series E, 5.500%, Perpetual (b)
    
2,700
      
67,068
      
0.03
%
Banc of California, Inc., Series E, 7.000%, Perpetual
    
4,065
      
107,316
      
0.05
%
Bank of America Corp.
                        
     Series GG, 6.000%, Perpetual (a)
    
4,000
      
103,240
      
0.04
%
     Series CC, 6.200%, Perpetual
    
2,440
      
63,538
      
0.03
%
BB&T Corp.
                        
     5.625%, Perpetual
    
4,575
      
121,283
      
0.05
%
     Series F, 5.200%, Perpetual
    
4,800
      
120,768
      
0.05
%
Capital One Financial Corp.
                        
     Series F, 6.200%, Perpetual
    
4,610
      
121,566
      
0.05
%
     Series H, 6.000%, Perpetual
    
4,675
      
120,849
      
0.05
%
Citigroup, Inc.
                        
     Series C, 5.800%, Perpetual
    
3,935
      
98,847
      
0.04
%
     Series S, 6.300%, Perpetual
    
3,855
      
101,348
      
0.04
%
Fannie Mae Preferred, Series S, 8.250%, Perpetual (a)
    
7,000
      
44,030
      
0.02
%
Fifth Third Bancorp, Series I, 6.625% to 12/31/2023 then 3 Month LIBOR USD + 3.710%, Perpetual (f)
    
1,300
      
35,464
      
0.02
%
First Republic Bank
                        
     Series F, 5.700%, Perpetual
    
3,465
      
88,877
      
0.04
%
     Series G, 5.500%, Perpetual
    
3,610
      
90,322
      
0.04
%
Huntington Bancshares, Inc., Series D, 6.250%, Perpetual
    
6,290
      
166,119
      
0.07
%
IBERIABANK Corp., Series B, 6.625% to 08/01/2025 then 3 Month LIBOR USD + 4.262%, Perpetual (f)
    
1,920
      
51,466
      
0.02
%
ING Groep N.V., 6.125%, Perpetual (b)
    
2,055
      
52,978
      
0.02
%
JPMorgan Chase & Co., Series BB, 6.150%, Perpetual
    
9,030
      
241,011
      
0.10
%
KeyCorp
                        
Series E, 6.125% to 12/15/2026 then 3 Month LIBOR USD + 3.892%, Pepetual (f)
    
4,520
      
122,356
      
0.05
%
Series F, 5.650%, Pepetual (a)
    
2,355
      
58,263
      
0.03
%
Legg Mason, Inc.
                        
5.450%, 09/15/2056
    
2,295
      
56,228
      
0.03
%
6.375%, 03/15/2056
    
2,051
      
54,228
      
0.02
%
MetLife, Inc., Series E, 5.625%, Pepetual (a)
    
5,035
      
128,191
      
0.06
%
Morgan Stanley, Series I, 6.375% to 10/15/2024 then 3 Month LIBOR USD + 3.708%, Perpetual (f)
    
7,585
      
203,733
      
0.09
%
National General Holdings Corp., Series C, 7.500%, Perpetual
    
2,795
      
70,127
      
0.03
%
Regions Financial Corp., Series B, 6.375% to 09/15/2024 then 3 Month LIBOR USD + 3.536%, Perpetual (f)
    
4,355
      
118,587
      
0.05
%
State Street Corp.
                        
     Series D, 5.900% to 03/15/2024 then 3 Month LIBOR USD + 3.108%, Perpetual (f)
    
4,465
      
121,180
      
0.05
%
     Series E, 6.000%, Perpetual
    
2,175
      
57,094
      
0.02
%
TCF Financial Corp., Series C, 5.700%, Perpetual
    
2,220
      
55,167
      
0.02
%
The Allstate Corp., Series G, 5.625%, Perpetual
    
5,700
      
147,459
      
0.06
%
The Charles Schwab Corp.
                        
     Series C, 6.000%, Perpetual
    
4,575
      
121,558
      
0.05
%
     Series D, 5.950%, Perpetual
    
4,625
      
121,915
      
0.05
%
The Goldman Sachs Group, Inc.
                        
     Series K, 6.375% to 05/10/2024 then 3 Month LIBOR USD + 3.550%, Perpetual (f)
    
2,715
      
72,816
      
0.03
%
     Series N, 6.300%, Perpetual
    
2,755
      
72,208
      
0.03
%
U.S. Bancorp, Series F, 6.500% to 01/15/2022 then 3 Month LIBOR USD + 4.447%, Perpetual (d)(f)
    
3,240
      
90,202
      
0.04
%
Validus Holdings Ltd., Series A, 5.875%, Perpetual (b)
    
5,700
      
147,687
      
0.06
%
Webster Financial Corp., Series F, 5.250%, Perpetual
    
1,075
      
26,122
      
0.01
%
Wells Fargo & Co.
                        
     Series V, 6.000%, Perpetual
    
4,610
      
120,090
      
0.05
%
     Series X, 5.500%, Perpetual
    
5,045
      
126,377
      
0.05
%
             
4,120,788
      
1.75
%
Telecommunication Services - 0.06%
                        
AT&T, Inc., 5.350%, 11/01/2066
    
5,300
      
131,016
      
0.06
%
                         
Utilities - 0.07%
                        
DTE Energy Co., Series F, 6.000%, 12/15/2076
    
2,605
      
68,720
      
0.03
%
The Southern Co., 6.250%, 10/15/2075
    
4,025
      
104,891
      
0.04
%
             
173,611
      
0.07
%
Total Preferred Stocks (Cost $4,827,966)
            
4,760,898
      
2.03
%
 
REITS - 0.69%
                        
Financials - 0.69%
                        
Annaly Capital Management, Inc., Series F, 6.950% to 09/30/2022 then 3 Month LIBOR USD + 4.993%, Perpetual (f)
    
5,050
      
128,623
      
0.05
%
Apollo Commercial Real Estate Finance, Inc.
    
9,010
      
172,001
      
0.07
%
Chimera Investment Corp.
    
9,270
      
177,057
      
0.07
%
Chimera Investment Corp.
                        
     Series A, 8.000%, Perpetual
    
4,925
      
126,572
      
0.05
%
     Series B, 8.000% to 03/30/2024 then 3 Month LIBOR USD + 5.791%, Perpetual (f)
    
2,665
      
69,556
      
0.03
%
Invesco Mortgage Capital, Inc., Series C, 7.500% to 09/27/2027 then 3 Month LIBOR USD + 5.289%, Perpetual (f)
    
5,150
      
128,750
      
0.05
%
Monmouth Real Estate Investment Corp., Series C, 6.125%, Perpetual
    
4,505
      
110,368
      
0.05
%
Public Storage, Series B, 5.400%, Pepetual
    
3,275
      
83,120
      
0.04
%
Starwood Property Trust, Inc.
    
7,765
      
177,353
      
0.08
%
Two Harbors Investment Corp.
    
10,655
      
165,153
      
0.07
%
Two Harbors Investment Corp., Series B, 7.625% to 07/27/2027 then 3 Month LIBOR USD + 5.352%, Perpetual (f)
    
8,105
      
207,164
      
0.09
%
Vornado Realty Trust, Series M, 5.250%, Perpetual
    
3,495
      
80,944
      
0.04
%
             
1,626,661
      
0.69
%
Total REITS (Cost $1,594,584)
            
1,626,661
      
0.69
%
                         
CORPORATE BONDS - 25.02%
                        
Consumer Discretionary - 0.49%
                        
Ford Motor Co., 7.450%, 07/16/2031
    
1,000,000
      
1,162,956
      
0.49
%
                         
Consumer Staples - 0.58%
                        
CVS Health Corp., 4.125%, 05/15/2021
    
1,000,000
      
1,017,051
      
0.43
%
Wal-Mart Stores, Inc., 5.000%, 10/25/2040
    
300,000
      
345,400
      
0.15
%
             
1,362,451
      
0.58
%
Energy - 2.41%
                        
Boardwalk Pipelines LP, 4.450%, 07/15/2027
    
1,200,000
      
1,164,890
      
0.49
%
Canadian Natural Resources Ltd., 3.900%, 02/01/2025 (b)
    
1,000,000
      
993,362
      
0.42
%
Encana Corp., 3.900%, 11/15/2021 (b)
    
1,600,000
      
1,612,225
      
0.69
%
Husky Energy, Inc., 4.000%, 04/15/2024 (b)
    
750,000
      
749,032
      
0.32
%
National Oilwell Varco, Inc., 2.600%, 12/01/2022
    
1,200,000
      
1,146,453
      
0.49
%
             
5,665,962
      
2.41
%
Financials - 12.54%
                        
American International Group, Inc.
                        
4.125%, 02/15/2024
    
1,000,000
      
1,009,610
      
0.43
%
4.875%, 06/01/2022
    
1,000,000
      
1,045,649
      
0.44
%
Boston Properties, Inc., 5.875%, 10/15/2019
    
700,000
      
719,145
      
0.31
%
Capital One Financial Corp., 4.750%, 07/15/2021
    
1,500,000
      
1,548,280
      
0.66
%
Capital One NA, 2.250%, 09/13/2021
    
500,000
      
480,018
      
0.20
%
Comerica, Inc., 2.125%, 05/23/2019
    
500,000
      
497,500
      
0.21
%
Diamond 1 Finance Corp. / Diamond 2 Finance Corp., 5.450%, 06/15/2023 (e)
    
1,220,000
      
1,283,445
      
0.55
%
Discover Financial Services, 5.200%, 04/27/2022
    
900,000
      
936,499
      
0.40
%
First Niagara Financial Group, Inc., 6.750%, 03/19/2020
    
590,000
      
620,322
      
0.26
%
Fifth Third Bancorp, 2.375%, 04/25/2019
    
1,775,000
      
1,771,241
      
0.75
%
General Electric Capital Corp., 6.000%, 08/07/2019
    
610,000
      
628,974
      
0.27
%
Huntington Bancshares, Inc., 4.000%, 05/15/2025
    
765,000
      
765,539
      
0.33
%
JPMorgan Chase & Co., 2.700%, 05/18/2023
    
1,000,000
      
962,709
      
0.41
%
KeyCorp
                        
2.300%, 12/13/2018
    
1,800,000
      
1,798,764
      
0.77
%
5.100%, 03/24/2021
    
950,000
      
990,203
      
0.42
%
Lincoln National Corp., 6.250%, 02/15/2020
    
780,000
      
813,264
      
0.35
%
Morgan Stanley, 5.500%, 07/28/2021
    
2,333,000
      
2,468,871
      
1.05
%
Prudential Financial, Inc., 3.878%, 03/27/2028
    
400,000
      
398,948
      
0.17
%
Qwest Capital Funding, Inc., 6.500%, 11/15/2018
    
700,000
      
708,785
      
0.30
%
Raymond James Financial, Inc.
                        
3.625%, 09/15/2026
    
1,500,000
      
1,440,372
      
0.61
%
5.625%, 04/01/2024
    
700,000
      
753,093
      
0.32
%
Synchrony Financial, 3.750%, 08/15/2021
    
1,200,000
      
1,188,027
      
0.51
%
Synovus Financial Corp., 3.125%, 11/01/2022
    
1,300,000
      
1,246,440
      
0.53
%
The Goldman Sachs Group, Inc.
                        
5.375%, 03/15/2020
    
1,100,000
      
1,137,904
      
0.48
%
6.000%, 06/15/2020
    
1,500,000
      
1,572,991
      
0.67
%
The Toronto-Dominion Bank, 2.125%, 07/02/2019 (b)
    
1,500,000
      
1,493,066
      
0.63
%
Westpac Banking Corp., 4.875%, 11/19/2019 (b)
    
450,000
      
461,222
      
0.20
%
Willis North America, Inc., 3.600%, 05/15/2024
    
750,000
      
731,782
      
0.31
%
             
29,472,663
      
12.54
%
 
Health Care - 3.12%
                        
Agilent Technologies, Inc., 5.000%, 07/15/2020
    
650,000
      
671,978
      
0.28
%
Amgen, Inc.
                        
3.450%, 10/01/2020
    
1,000,000
      
1,007,723
      
0.43
%
3.625%, 05/22/2024
    
1,500,000
      
1,499,720
      
0.64
%
Celgene Corp., 3.625%, 05/15/2024
    
1,600,000
      
1,576,961
      
0.67
%
Edwards Lifesciences Corp., 4.300%, 06/15/2028
    
1,450,000
      
1,458,381
      
0.62
%
Express Scripts Holding Co., 3.500%, 06/15/2024
    
700,000
      
675,848
      
0.29
%
Zoetis, Inc., 3.250%, 02/01/2023
    
450,000
      
443,238
      
0.19
%
             
7,333,849
      
3.12
%
Industrials - 0.43%
                        
Rio Tinto Finance USA Ltd., 3.750%, 06/15/2025 (b)
    
1,000,000
      
1,003,047
      
0.43
%
                         
Information Technology - 1.34%
                        
Alibaba Group Holding Ltd, 3.600%, 11/28/2024 (b)
    
1,000,000
      
987,438
      
0.42
%
Apple, Inc., 4.500%, 02/23/2036
    
250,000
      
272,436
      
0.12
%
Corning, Inc.
                        
6.625%, 05/15/2019
    
695,000
      
711,707
      
0.30
%
6.850%, 03/01/2029
    
275,000
      
327,881
      
0.14
%
Juniper Networks, Inc., 4.600%, 03/15/2021
    
600,000
      
607,635
      
0.26
%
Oracle Corp., 2.650%, 07/15/2026
    
250,000
      
233,894
      
0.10
%
             
3,140,991
      
1.34
%
Materials - 1.61%
                        
AngloGold Ashanti Holdings PLC, 5.125%, 08/01/2022 (b)
    
1,000,000
      
1,029,727
      
0.44
%
Goldcorp, Inc., 3.625%, 06/09/2021 (b)
    
750,000
      
747,905
      
0.32
%
Newmont Mining Corp., 3.500%, 03/15/2022
    
1,000,000
      
995,585
      
0.42
%
The Dow Chemical Co., 4.250%, 11/15/2020
    
1,000,000
      
1,020,280
      
0.43
%
             
3,793,497
      
1.61
%
Retail Trade - 0.45%
                        
Macy’s Retail Holdings, Inc.
                        
4.375%, 09/01/2023
    
900,000
      
902,188
      
0.39
%
4.500%, 12/15/2034
    
175,000
      
149,808
      
0.06
%
             
1,051,996
      
0.45
%
Telecommunication Services - 2.05%
                        
AT&T, Inc.
                        
3.000%, 02/15/2022
    
500,000
      
489,581
      
0.21
%
4.250%, 03/01/2027
    
980,000
      
971,513
      
0.41
%
5.350%, 09/01/2040
    
200,000
      
198,962
      
0.08
%
5.800%, 02/15/2019
    
800,000
      
812,776
      
0.35
%
Deutsche Telekom AG, 6.000%, 07/08/2019 (b)
    
1,160,000
      
1,193,659
      
0.51
%
Verizon Communications, Inc., 2.450%, 11/01/2022
    
1,200,000
      
1,150,842
      
0.49
%
             
4,817,333
      
2.05
%
Total Corporate Bonds (Cost $59,269,374)
            
58,804,745
      
25.02
%
                         
MORTGAGE BACKED SECURITIES - 4.56%
                        
Fannie Mae Pool
                        
3.000%, 10/01/2043
    
2,593,691
      
2,522,348
      
1.07
%
3.500%, 01/01/2042
    
512,879
      
512,528
      
0.22
%
4.000%, 10/01/2041
    
584,120
      
597,992
      
0.25
%
4.000%, 12/01/2041
    
528,349
      
540,897
      
0.23
%
4.500%, 08/01/2020
    
20,811
      
21,069
      
0.01
%
6.000%, 10/01/2037
    
129,682
      
141,758
      
0.06
%
Fannie Mae REMICS
                        
Series 13-52, 1.250%, 06/25/2043
    
165,546
      
146,215
      
0.06
%
Series 12-22, 2.000%, 11/25/2040
    
141,936
      
136,399
      
0.06
%
Series 12-16, 2.000%, 11/25/2041
    
125,083
      
118,077
      
0.05
%
Series, 10-134, 2.250%, 03/25/2039
    
112,576
      
110,103
      
0.05
%
Freddie Mac Gold Pool
                        
3.000%, 05/01/2042
    
931,755
      
906,417
      
0.39
%
3.000%, 09/01/2042
    
1,787,242
      
1,738,940
      
0.74
%
3.500%, 01/01/2048
    
1,737,539
      
1,722,438
      
0.73
%
5.000%, 05/01/2020
    
18,460
      
18,620
      
0.01
%
5.500%, 04/01/2037
    
76,038
      
82,952
      
0.03
%
Freddie Mac REMICS
                        
Series 4146, 1.500%, 10/15/2042
    
103,947
      
99,945
      
0.04
%
Series 4309, 2.000%, 10/15/2043
    
101,989
      
96,414
      
0.04
%
Series 3870, 2.500%, 08/15/2040
    
78,026
      
75,720
      
0.03
%
Series 3928, 2.750%, 01/15/2041
    
279,399
      
276,691
      
0.12
%
Seires 4016, 3.000%, 09/15/2039
    
319,975
      
315,068
      
0.14
%
Series 4322, 3.000%, 05/15/2043
    
307,677
      
304,174
      
0.13
%
Government National Mortgage Association, 1.750%, 02/16/2043
    
262,282
      
240,537
      
0.10
%
Total Mortgage Backed Securities (Cost $11,007,444)
            
10,725,302
      
4.56
%
 
U.S. TREASURY OBLIGATIONS - 1.92%
                        
U.S. Treasury Bonds - 0.42%
                        
U.S. Treasury Bonds, 3.625%, 02/15/2044
    
900,000
      
986,414
      
0.42
%
                         
U.S. Treasury Notes - 1.50%
                        
U.S. Treasury Notes
                        
2.625%, 11/15/2020
    
1,250,000
      
1,247,339
      
0.53
%
3.625%, 08/15/2019
    
2,250,000
      
2,275,796
      
0.97
%
             
3,523,135
      
1.50
%
Total U.S. Treasury Obligations (Cost $4,593,602)
            
4,509,549
      
1.92
%
                         
U.S. GOVERNMENT AGENCY ISSUES - 2.65%
                        
Fannie Mae
                        
1.500%, 08/10/2021
    
1,000,000
      
956,793
      
0.41
%
1.500%, 04/18/2028 (g)
    
1,000,000
      
991,076
      
0.42
%
2.500%, 03/30/2026 (g)
    
1,200,000
      
1,195,721
      
0.51
%
Federal Home Loan Banks
                        
1.250%, 10/17/2031 (g)
    
1,250,000
      
1,191,102
      
0.50
%
2.750%, 07/11/2031
    
800,000
      
723,095
      
0.31
%
Freddie Mac
                        
2.000%, 10/27/2023 (g)
    
1,200,000
      
1,176,001
      
0.50
%
Total U.S. Government Agency Issues (Cost $6,398,259)
            
6,233,788
      
2.65
%
                         
INVESTMENT COMPANIES (EXCLUDING MONEY MARKET FUNDS) - 1.24%
                        
Apollo Investment Corp.
    
30,270
      
180,106
      
0.08
%
Ares Capital Corp.
    
10,130
      
170,691
      
0.07
%
BlackRock TCP Capital Corp.
    
11,000
      
163,350
      
0.07
%
FS Investment Corp.
    
21,350
      
174,003
      
0.07
%
Guggenheim Credit Allocation Fund
    
34,000
      
750,380
      
0.32
%
Hercules Capital, Inc.
    
13,115
      
177,184
      
0.08
%
Monroe Capital Corp.
    
12,670
      
169,525
      
0.07
%
New Mountain Finance Corp.
    
12,065
      
171,926
      
0.07
%
SPDR Barclays Capital High Yield Bond
    
1,000
      
35,940
      
0.02
%
SPDR Barclays Short Term High Yield
    
4,000
      
110,160
      
0.05
%
SPDR Wells Fargo Preferred Stock ETF
    
2,800
      
120,848
      
0.05
%
TPG Specialty Lending, Inc.
    
8,965
      
174,907
      
0.07
%
Vanguard High-Yield Corporate Fund
    
89,820
      
515,567
      
0.22
%
Total Investment Companies (Excluding Money Market Funds) (Cost $2,927,236)
            
2,914,587
      
1.24
%
                         
SHORT-TERM INVESTMENTS - 0.74%
                        
Money Market Funds - 0.74%
                        
Fidelity Government Portfolio, Institutional Class, 1.80% (c)
    
1,750,896
      
1,750,896
      
0.74
%
Total Short-Term Investments (Cost $1,750,896)
            
1,750,896
      
0.74
%
                         
Total Investments (Cost $198,618,516) - 99.64%
            
234,195,590
      
99.64
%
Other Assets in Excess of Liabilities - 0.36%
            
835,748
      
0.36
%
TOTAL NET ASSETS - 100.00%
          
$
235,031,338
      
100.00
%
                         
Percentages are stated as a percent of net assets.
                        
 
PLC
Public Limited Company
                
REIT
Real Estate Investment Trust
                
(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 July 31, 2018.
            
(d)
Investment in affiliated security. Quasar Distributors, LLC, which serves as the Fund’s distributor, is a subsidiary of U.S. Bancorp. Details of transactions with this affiliated company for the nine-month period ended July 31, 2018, are as follows: 
             
 
     Issuer
U.S. Bancorp
            
 
     Beginning Cost
 $
93,213
            
 
     Purchase Cost
 $
  -
            
 
     Sales Cost
 $
  -
            
 
     Ending Cost
 $
93,213
            
 
     Dividend Income
 $
  3,949
            
 
     Net Change in Unrealized Appreciation
 $
(3,046)
            
 
     Realized Gain/Loss
 $
   -
            
 
     Shares
  
  3,240
            
 
     Market Value
 $
90,202
            
(e)
Rule 144A security. Security is exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended.  Rule 144A securities may be resold in transactions exempt from registration to qualified institutional investors.  As of July 31, 2018, the market value of this security totaled $1,283,445, which represents 0.55% of net assets.
(f)
Variable rate security; rate disclosed is the current rate as of July 31, 2018.
          
(g)
Step-up bond; rate disclosed is the current rate as of July 31, 2018.
          
 
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.
 
Summary of Fair Value Exposure at July 31, 2018
              
 
The Fund follows fair valuation 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 valuationtechniques 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.
                 
Following is a description of the valuation techniques applied to the Fund’s major categories of assets and liabilities measured at fair value 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 will generally be 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”) will generally be 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 will generally be 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 securityneeds 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 registered investment companies (e.g., mutual funds) are generally priced at the ending NAV provided by the applicable registered investment company’s service agent and will be 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.  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 exceeded 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 market hierarchy depending on the inputs used and market activity levels for specific securities.
 
The Board of Trustees of the Fund (the “Board”) has adopted fair value pricing procedures that are followed when a price for a security is 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.  Fair value pricing determinations are made in good faith in accordance with these procedures. There are numerous criteria that will be given consideration 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 fair valuation 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.  The effect of using fair value pricing is that the Fund’s NAV will reflect the affected portfolio securities’ values as determined by the Board or its designee 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 and are generally classified in Level 2 prices of the fair valuation hierarchy.  Because the Fund may invest in foreign securities, the value of the Fund’s portfolio securities may change on days when you will not be able to purchase or redeem your shares.
 
The Board has delegated day-to-day valuation matters to a Valuation Committee comprised of one or more representatives from Hennessy Advisors, Inc., the Fund’s investment advisor.  The function of the Valuation Committee is to value securities where current and reliable market quotations are not readily available.  All actions taken by the Valuation Committee are reviewed by the Board.
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 valuation hierarchy of the Fund’s securities as of July 31, 2018, are as follows:
 
Common Stocks
  
Level 1
    
Level 2
    
Level 3
    
Total
  
Consumer Discretionary
  
$
33,494,915
    
$
–
    
$
–
    
$
33,494,915
  
Consumer Staples
    
6,655,123
      
–
      
–
      
6,655,123
  
Energy
    
3,256,756
      
–
      
–
      
3,256,756
  
Financials
    
34,845,075
      
–
      
–
      
34,845,075
  
Health Care
    
7,050,630
      
–
      
–
      
7,050,630
  
Industrials
    
20,160,726
      
–
      
–
      
20,160,726
  
Information Technology
    
27,157,909
      
–
      
–
      
27,157,909
  
Materials
    
8,064,484
      
–
      
–
      
8,064,484
  
Telecommunication Services
    
2,183,546
      
–
      
–
      
2,183,546
  
Total Common Stocks
  
$
142,869,164
    
$
–
    
$
–
    
$
142,869,164
  
                                 
Preferred Stocks
                                
Consumer Staples
  
$
205,459
    
$
–
    
$
–
    
$
205,459
  
Energy
    
130,024
      
–
      
–
      
130,024
  
Financials
    
4,069,322
      
51,466
      
–
      
4,120,788
  
Telecommunication Services
    
131,016
      
–
      
–
      
131,016
  
Utilities
    
173,611
      
–
      
–
      
173,611
  
Total Preferred Stocks
  
$
4,709,432
    
$
51,466
    
$
–
    
$
4,760,898
  
                                 
REITS
                                
Financials
  
$
1,626,661
    
$
–
    
$
–
    
$
1,626,661
  
Total REITS
  
$
1,626,661
    
$
–
    
$
–
    
$
1,626,661
  
                                 
Corporate Bonds
                                
Consumer Discretionary
  
$
–
    
$
1,162,956
    
$
–
    
$
1,162,956
  
Consumer Staples
    
–
      
1,362,451
      
–
      
1,362,451
  
Energy
    
–
      
5,665,962
      
–
      
5,665,962
  
Financials
    
–
      
29,472,663
      
–
      
29,472,663
  
Health Care
    
–
      
7,333,849
      
–
      
7,333,849
  
Industrials
    
–
      
1,003,047
      
–
      
1,003,047
  
Information Technology
    
–
      
3,140,991
      
–
      
3,140,991
  
Materials
    
–
      
3,793,497
      
–
      
3,793,497
  
Retail Trade
    
–
      
1,051,996
      
–
      
1,051,996
  
Telecommunication Services
    
–
      
4,817,333
      
–
      
4,817,333
  
Total Corporate Bonds
  
$
–
    
$
58,804,745
    
$
–
    
$
58,804,745
  
                                 
Mortgage Backed Securities
  
$
–
    
$
10,725,302
    
$
–
    
$
10,725,302
  
                                 
U.S. Treasury Obligations
                                
U.S. Treasury Bonds
  
$
–
    
$
986,414
    
$
–
    
$
986,414
  
U.S. Treasury Notes
    
–
      
3,523,135
      
–
      
3,523,135
  
Total U.S. Treasury Obligations
  
$
–
    
$
4,509,549
    
$
–
    
$
4,509,549
  
                                 
U.S. Government Agency Issues
  
$
–
    
$
6,233,788
    
$
–
    
$
6,233,788
  
                                 
Investment Companies (Excluding Money Market Funds)
  
$
2,914,587
    
$
–
    
$
–
    
$
2,914,587
  
                                 
Short-Term Investments
                                
Money Market Funds
  
$
1,750,896
    
$
–
    
$
–
    
$
1,750,896
  
Total Short-Term Investments
  
$
1,750,896
    
$
–
    
$
–
    
$
1,750,896
  
                                 
Total Investments
  
$
153,870,740
    
$
80,324,850
    
$
–
    
$
234,195,590
  



Hennessy Balanced Fund
                  
Schedule of Investments
                  
July 31, 2018 (Unaudited)
                  
                   
   
Number of
 Shares/Par
Amount
    
Value
    
% of
 Net Assets
  
COMMON STOCKS - 48.17%
                  
Consumer Staples - 9.50%
                  
The Coca-Cola Co.
    
12,250
    
$
571,217
      
4.91
%
The Procter & Gamble Co.
    
6,600
      
533,808
      
4.59
%
             
1,105,025
      
9.50
%
Energy - 9.60%
                        
Chevron Corp.
    
4,580
      
578,317
      
4.97
%
Exxon Mobil Corp.
    
6,600
      
537,966
      
4.63
%
             
1,116,283
      
9.60
%
Health Care - 7.39%
                        
Merck & Co., Inc.
    
4,200
      
276,654
      
2.38
%
Pfizer, Inc.
    
14,602
      
583,058
      
5.01
%
             
859,712
      
7.39
%
Industrials - 3.44%
                        
General Electric Co.
    
29,352
      
400,068
      
3.44
%
                         
Information Technology - 13.49%
                        
Cisco Systems, Inc.
    
14,694
      
621,409
      
5.34
%
Intel Corp.
    
8,400
      
404,040
      
3.48
%
International Business Machines Corp.
    
3,746
      
542,908
      
4.67
%
             
1,568,357
      
13.49
%
Telecommunication Services - 4.75%
                        
Verizon Communications, Inc.
    
10,708
      
552,961
      
4.75
%
Total Common Stocks (Cost $5,135,667)
            
5,602,406
      
48.17
%
                         
SHORT-TERM INVESTMENTS - 52.39%
                        
Money Market Funds - 4.03%
                        
Fidelity Government Portfolio, Institutional Class, 1.80% (a)
    
469,267
      
469,267
      
4.03
%
                         
U.S. Treasury Bills - 48.36%
                        
2.010%, 11/08/2018 (b)
    
500,000
      
497,257
      
4.27
%
2.070%, 12/06/2018 (b)
    
1,000,000
      
992,839
      
8.54
%
2.160%, 1/31/2019 (b)
    
2,000,000
      
1,978,243
      
17.01
%
2.275%, 5/23/2019 (b)
    
1,000,000
      
981,286
      
8.44
%
2.275%, 6/20/2019 (b)
    
800,000
      
783,392
      
6.74
%
2.335%, 7/18/2019 (b)
    
400,000
      
390,874
      
3.36
%
             
5,623,891
      
48.36
%
Total Short-Term Investments (Cost $6,099,284)
            
6,093,158
      
52.39
%
                         
Total Investments (Cost $11,234,951) - 100.56%
            
11,695,564
      
100.56
%
Liabilities in Excess of Other Assets - (0.56)%
            
(65,477
)
    
(0.56
)%
TOTAL NET ASSETS - 100.00%
          
$
11,630,087
      
100.00
%
                         
Percentages are stated as a percent of net assets.
                        
 
(a)
The rate listed is the fund’s seven-day yield as of July 31, 2018.
            
(b)
The rate listed is discount rate at issue.
              
                 
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.
 
Summary of Fair Value Exposure at July 31, 2018
 
 
 
 
 
 
 
 
The Fund follows fair valuation 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 valuationtechniques 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.
 
 
 
 
 
 
 
 
 
Following is a description of the valuation techniques applied to the Fund’s major categories of assets and liabilities measured at fair value on a recurring basis.
 
Equity Securities – Equity securities, including common stocks, preferred 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 will generally be 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”) will generally be 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 will generally be 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.
 
Registered Investment Companies – Investments in registered investment companies (e.g., mutual funds) are generally priced at the ending NAV provided by the applicable registered investment company’s service agent and will be 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.  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 exceeded 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 market hierarchy depending on the inputs used and market activity levels for specific securities.
 
The Board of Trustees of the Fund (the “Board”) has adopted fair value pricing procedures that are followed when a price for a security is 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.  Fair value pricing determinations are made in good faith in accordance with these procedures. There are numerous criteria that will be given consideration 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 Board has delegated day-to-day valuation matters to a Valuation Committee comprised of one or more representatives from Hennessy Advisors, Inc., the Fund’s investment advisor.  The function of the Valuation Committee is to value securities where current and reliable market quotations are not readily available.  All actions taken by the Valuation Committee are reviewed by the Board.
 
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 valuation hierarchy of the Fund’s securities as of July 31, 2018, are as follows:
 
   
Level 1
    
Level 2
    
Level 3
    
Total
  
Common Stocks
                        
Consumer Staples
  
$
1,105,025
    
$
–
    
$
–
    
$
1,105,025
  
Energy
    
1,116,283
      
–
      
–
      
1,116,283
  
Health Care
    
859,712
      
–
      
–
      
859,712
  
Industrials
    
400,068
      
–
      
–
      
400,068
  
Information Technology
    
1,568,357
      
–
      
–
      
1,568,357
  
Telecommunication Services
    
552,961
      
–
      
–
      
552,961
  
Total Common Stocks
  
$
5,602,406
    
$
–
    
$
–
    
$
5,602,406
  
                                 
Short-Term Investments
                                
Money Market Funds
  
$
469,267
    
$
–
    
$
–
    
$
469,267
  
U.S. Treasury Bills
    
–
      
5,623,891
      
–
      
5,623,891
  
Total Short-Term Investments
  
$
469,267
    
$
5,623,891
    
$
–
    
$
6,093,158
  
                                 
Total Investments
  
$
6,071,673
    
$
5,623,891
    
$
–
    
$
11,695,564
  


Hennessy Gas Utility Fund
                  
Schedule of Investments
                  
July 31, 2018 (Unaudited)
                  
   
Number of
          
% of
  
   
Shares
    
Value
    
Net Assets
  
COMMON STOCKS - 97.63%
                  
Energy - 21.36%
                  
Cheniere Energy, Inc. (a)
    
780,917
    
$
49,588,229
      
4.82
%
Enbridge, Inc. (b)
    
1,453,765
      
51,506,894
      
5.01
%
EQT Corp.
    
144,682
      
7,187,802
      
0.70
%
Kinder Morgan, Inc.
    
2,879,101
      
51,190,416
      
4.97
%
Tellurian, Inc. (a)
    
1,000,690
      
7,815,389
      
0.76
%
TransCanada Corp. (b)
    
1,167,853
      
52,494,992
      
5.10
%
             
219,783,722
      
21.36
%
Financials - 0.56%
                        
Berkshire Hathaway, Inc., Class A (a)
    
19
      
5,729,450
      
0.56
%
                         
Utilities - 75.71%
                        
Algonquin Power & Utilities Corp. (b)
    
338,664
      
3,325,680
      
0.32
%
ALLETE, Inc.
    
1,775
      
137,616
      
0.01
%
Ameren Corp.
    
120,240
      
7,462,094
      
0.73
%
Atmos Energy Corp.
    
569,086
      
52,281,931
      
5.08
%
Avangrid, Inc.
    
23,200
      
1,161,392
      
0.11
%
Avista Corp.
    
67,572
      
3,417,792
      
0.33
%
Black Hills Corp.
    
151,547
      
9,088,274
      
0.88
%
Centerpoint Energy, Inc.
    
662,828
      
18,877,341
      
1.84
%
Chesapeake Utilities Corp.
    
71,658
      
6,008,523
      
0.58
%
CMS Energy Corp.
    
502,998
      
24,314,923
      
2.36
%
Consolidated Edison, Inc.
    
341,936
      
26,989,008
      
2.62
%
Corning Natural Gas Holding Corp.
    
16,999
      
310,239
      
0.03
%
Dominion Resources, Inc.
    
728,296
      
52,226,106
      
5.08
%
DTE Energy Co.
    
235,304
      
25,539,896
      
2.48
%
Duke Energy Corp.
    
334,787
      
27,325,315
      
2.66
%
Entergy Corp.
    
9,560
      
777,037
      
0.08
%
Eversource Energy
    
175,075
      
10,630,554
      
1.03
%
Exelon Corp.
    
283,631
      
12,054,318
      
1.17
%
Fortis, Inc. (b)
    
387,776
      
12,707,420
      
1.24
%
MDU Resources Group, Inc.
    
479,407
      
13,902,803
      
1.35
%
MGE Energy, Inc.
    
37,229
      
2,382,656
      
0.23
%
National Fuel Gas Co.
    
317,924
      
17,072,519
      
1.66
%
National Grid PLC - ADR (b)
    
904,844
      
48,933,964
      
4.76
%
New Jersey Resources Corp.
    
322,634
      
14,921,823
      
1.45
%
NiSource, Inc.
    
1,257,781
      
32,928,707
      
3.20
%
Northwest Natural Gas Co.
    
161,803
      
10,541,465
      
1.02
%
NorthWestern Corp.
    
57,398
      
3,405,423
      
0.33
%
ONE Gas, Inc.
    
299,675
      
23,086,962
      
2.24
%
PG&E Corp.
    
752,449
      
32,415,503
      
3.15
%
PPL Corp.
    
370,419
      
10,656,955
      
1.04
%
Public Service Enterprise Group, Inc.
    
497,490
      
25,650,584
      
2.49
%
RGC Resources, Inc.
    
46,794
      
1,327,546
      
0.13
%
SCANA Corp.
    
137,966
      
5,517,260
      
0.54
%
Sempra Energy
    
438,340
      
50,667,721
      
4.93
%
South Jersey Industries, Inc.
    
358,671
      
12,169,707
      
1.18
%
Southwest Gas Holdings, Inc.
    
239,317
      
18,714,589
      
1.82
%
Spire, Inc.
    
241,491
      
17,290,756
      
1.68
%
The Southern Co.
    
1,080,200
      
52,497,720
      
5.10
%
UGI Corp.
    
253,752
      
13,484,381
      
1.31
%
Unitil Corp.
    
51,798
      
2,637,036
      
0.26
%
Vectren Corp.
    
260,628
      
18,627,083
      
1.81
%
WEC Energy Group, Inc.
    
594,740
      
39,472,894
      
3.84
%
Xcel Energy, Inc.
    
341,399
      
15,997,957
      
1.56
%
             
778,939,473
      
75.71
%
Total Common Stocks (Cost $596,947,939)
            
1,004,452,645
      
97.63
%
 
PARTNERSHIPS - 1.17%
                        
Plains GP Holdings L.P., Class A
    
497,255
      
12,078,324
      
1.17
%
Total Partnerships (Cost $12,353,393)
            
12,078,324
      
1.17
%
                         
SHORT-TERM INVESTMENTS - 1.06%
                        
Money Market Funds - 1.06%
                        
Fidelity Government Portfolio, Institutional Class, 1.80% (c)
    
10,871,289
      
10,871,289
      
1.06
%
Total Short-Term Investments (Cost $10,871,289)
            
10,871,289
      
1.06
%
                         
Total Investments (Cost $620,172,621) - 99.86%
            
1,027,402,258
      
99.86
%
Other Assets in Excess of Liabilities - 0.14%
            
1,426,767
      
0.14
%
TOTAL NET ASSETS - 100.00%
          
$
1,028,829,025
      
100.00
%
                         
Percentages are stated as a percent of net assets.
                        
 
ADR
American Depositary Receipt
              
(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 July 31, 2018.
        
                 
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.
 
 
Summary of Fair Value Exposure at July 31, 2018
              
 
The Fund follows fair valuation 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 valuationtechniques 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.
                 
Following is a description of the valuation techniques applied to the Fund’s major categories of assets and liabilities measured at fair value 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 will generally be 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”) will generally be 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 will generally be 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 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 registered investment companies (e.g., mutual funds) are generally priced at the ending NAV provided by the applicable registered investment company’s service agent and will be 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.  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 exceeded 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 market hierarchy depending on the inputs used and market activity levels for specific securities.
 
The Board of Trustees of the Fund (the “Board”) has adopted fair value pricing procedures that are followed when a price for a security is 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.  Fair value pricing determinations are made in good faith in accordance with these procedures. There are numerous criteria that will be given consideration 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 fair valuation 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.  The effect of using fair value pricing is that the Fund’s NAV will reflect the affected portfolio securities’ values as determined by the Board or its designee 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 and are generally classified in Level 2 prices of the fair valuation hierarchy.  Because the Fund may invest in foreign securities, the value of the Fund’s portfolio securities may change on days when you will not be able to purchase or redeem your shares. 
 
The Board has delegated day-to-day valuation matters to a Valuation Committee comprised of one or more representatives from Hennessy Advisors, Inc., the Fund’s investment advisor.  The function of the Valuation Committee is to value securities where current and reliable market quotations are not readily available.  All actions taken by the Valuation Committee are reviewed by the Board.
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 valuation hierarchy of the Fund’s securities as of July 31, 2018, are as follows:
 
   
Level 1
    
Level 2
    
Level 3
    
Total
  
Common Stocks
                        
Energy
  
$
219,783,722
    
$
–
    
$
–
    
$
219,783,722
  
Financials
    
5,729,450
      
–
      
–
      
5,729,450
  
Utilities
    
778,939,473
      
–
      
–
      
778,939,473
  
Total Common Stocks
  
$
1,004,452,645
    
$
–
    
$
–
    
$
1,004,452,645
  
                                 
Partnerships
                                
Energy
  
$
12,078,324
    
$
–
    
$
–
    
$
12,078,324
  
Total Partnerships
  
$
12,078,324
    
$
–
    
$
–
    
$
12,078,324
  
                                 
Short-Term Investments
                                
Money Market Funds
  
$
10,871,289
    
$
–
    
$
–
    
$
10,871,289
  
Total Short-Term Investments
  
$
10,871,289
    
$
–
    
$
–
    
$
10,871,289
  
                                 
Total Investments
  
$
1,027,402,258
    
$
–
    
$
–
    
$
1,027,402,258
  



Hennessy Small Cap Financial Fund
                  
Schedule of Investments
                  
July 31, 2018 (Unaudited)
                  
   
Number of
          
% of
  
   
Shares
    
Value
    
Net Assets
  
COMMON STOCKS - 97.11%
                  
Financials - 97.11%
                  
Banc of California, Inc.
    
345,000
    
$
6,900,000
      
3.61
%
BankUnited, Inc.
    
165,000
      
6,411,900
      
3.36
%
Banner Corp.
    
70,000
      
4,407,900
      
2.31
%
Beneficial Bancorp, Inc.
    
255,000
      
4,143,750
      
2.17
%
Blue Hills Bancorp, Inc.
    
45,000
      
985,500
      
0.52
%
BofI Holding, Inc. (a)
    
95,000
      
3,706,900
      
1.94
%
Brookline Bancorp, Inc.
    
530,000
      
9,646,000
      
5.05
%
Capstar Financial Holdings, Inc. (a)
    
147,000
      
2,631,300
      
1.38
%
Columbia Financial, Inc. (a)
    
350,000
      
5,876,500
      
3.08
%
ConnectOne Bancorp, Inc.
    
285,000
      
7,068,000
      
3.70
%
Dime Community Bancshares, Inc.
    
230,000
      
3,956,000
      
2.07
%
Eagle Bancorp, Inc. (a)
    
140,000
      
7,567,000
      
3.96
%
FCB Financial Holdings, Inc., Class A (a)
    
120,000
      
6,120,000
      
3.21
%
First BanCorp. (a)(b)
    
560,000
      
4,603,200
      
2.41
%
First Connecticut Bancorp, Inc.
    
150,000
      
4,665,000
      
2.44
%
Flushing Financial Corp.
    
130,000
      
3,260,400
      
1.71
%
Green Bancorp, Inc.
    
200,000
      
4,860,000
      
2.55
%
Guaranty Bancshares, Inc.
    
7,500
      
235,200
      
0.12
%
HarborOne Bancorp, Inc. (a)
    
285,000
      
5,229,750
      
2.74
%
Hingham Institution for Savings
    
45,000
      
9,948,150
      
5.21
%
Hope Bancorp, Inc.
    
50,000
      
839,000
      
0.44
%
IBERIABANK Corp.
    
70,000
      
5,817,000
      
3.05
%
Independent Bank Corp.
    
55,000
      
4,862,000
      
2.55
%
Kearny Financial Corp. of Maryland
    
515,000
      
7,390,250
      
3.87
%
Meridian Bancorp, Inc.
    
445,000
      
8,143,500
      
4.27
%
Midland States Bancorp, Inc.
    
120,000
      
4,041,600
      
2.12
%
OceanFirst Financial Corp.
    
325,000
      
9,480,250
      
4.97
%
Opus Bank
    
270,000
      
7,641,000
      
4.00
%
PacWest Bancorp
    
87,000
      
4,369,140
      
2.29
%
Provident Financial Services, Inc.
    
85,000
      
2,170,900
      
1.14
%
Sterling Bancorp
    
200,000
      
4,440,000
      
2.32
%
Union Bankshares Corp.
    
235,000
      
9,519,850
      
4.99
%
United Financial Bancorp, Inc.
    
240,000
      
4,202,400
      
2.20
%
Washington Federal, Inc.
    
170,000
      
5,703,500
      
2.99
%
Western Alliance Bancorp (a)
    
10,000
      
567,200
      
0.30
%
Wintrust Financial Corp.
    
45,000
      
3,947,850
      
2.07
%
Total Common Stocks (Cost $149,783,617)
            
185,357,890
      
97.11
%
                         
SHORT-TERM INVESTMENTS - 2.48%
                        
Money Market Funds - 2.48%
                        
Fidelity Government Portfolio, Institutional Class, 1.80% (c)
    
4,730,318
      
4,730,318
      
2.48
%
Total Short-Term Investments (Cost $4,730,318)
            
4,730,318
      
2.48
%
                         
Total Investments (Cost $154,513,935) - 99.59%
            
190,088,208
      
99.59
%
Other Assets in Excess of Liabilities - 0.41%
            
783,187
      
0.41
%
TOTAL NET ASSETS - 100.00%
          
$
190,871,395
      
100.00
%
                         
Percentages are stated as a percent of net assets.
                        
 
(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 July 31, 2018.
          
                 
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.
 
 
Summary of Fair Value Exposure at July 31, 2018
              
 
The Fund follows fair valuation 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 valuationtechniques 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.
                 
Following is a description of the valuation techniques applied to the Fund’s major categories of assets and liabilities measured at fair value 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 will generally be 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”) will generally be 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 will generally be 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 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 registered investment companies (e.g., mutual funds) are generally priced at the ending NAV provided by the applicable registered investment company’s service agent and will be 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.  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 exceeded 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 market hierarchy depending on the inputs used and market activity levels for specific securities.
 
The Board of Trustees of the Fund (the “Board”) has adopted fair value pricing procedures that are followed when a price for a security is 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.  Fair value pricing determinations are made in good faith in accordance with these procedures. There are numerous criteria that will be given consideration 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 fair valuation 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.  The effect of using fair value pricing is that the Fund’s NAV will reflect the affected portfolio securities’ values as determined by the Board or its designee 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 and are generally classified in Level 2 prices of the fair valuation hierarchy.  Because the Fund may invest in foreign securities, the value of the Fund’s portfolio securities may change on days when you will not be able to purchase or redeem your shares. 
 
The Board has delegated day-to-day valuation matters to a Valuation Committee comprised of one or more representatives from Hennessy Advisors, Inc., the Fund’s investment advisor.  The function of the Valuation Committee is to value securities where current and reliable market quotations are not readily available.  All actions taken by the Valuation Committee are reviewed by the Board.
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 valuation hierarchy of the Fund’s securities as of July 31, 2018, are as follows:
 
   
Level 1
    
Level 2
    
Level 3
    
Total
  
Common Stocks
                        
Financials
  
$
185,357,890
    
$
–
    
$
–
    
$
185,357,890
  
Total Common Stocks
  
$
185,357,890
    
$
–
    
$
–
    
$
185,357,890
  
                                 
Short-Term Investments
                                
Money Market Funds
  
$
4,730,318
    
$
–
    
$
–
    
$
4,730,318
  
Total Short-Term Investments
  
$
4,730,318
    
$
–
    
$
–
    
$
4,730,318
  
                                 
Total Investments
  
$
190,088,208
    
$
–
    
$
–
    
$
190,088,208
  
 
 
Hennessy Large Cap Financial Fund
                  
Schedule of Investments
                  
July 31, 2018 (Unaudited)
                  
   
Number of
          
% of
  
   
Shares
    
Value
    
Net Assets
  
COMMON STOCKS - 99.34%
                  
Financials - 69.49%
                  
American Express Co.
    
16,500
    
$
1,642,080
      
3.07
%
Bank of America Corp.
    
86,000
      
2,655,680
      
4.97
%
Berkshire Hathaway, Inc., Class B (a)
    
12,500
      
2,473,375
      
4.63
%
Capital One Financial Corp.
    
24,000
      
2,263,680
      
4.24
%
Citigroup, Inc.
    
34,000
      
2,444,260
      
4.57
%
Citizens Financial Group, Inc.
    
30,000
      
1,193,400
      
2.23
%
E*TRADE Financial Corp. (a)
    
19,500
      
1,166,295
      
2.18
%
Fifth Third Bancorp
    
29,000
      
858,110
      
1.61
%
JPMorgan Chase & Co.
    
23,000
      
2,643,850
      
4.95
%
Moody’s Corp.
    
15,000
      
2,566,800
      
4.80
%
Morgan Stanley
    
45,000
      
2,275,200
      
4.26
%
MSCI, Inc.
    
12,500
      
2,077,375
      
3.89
%
State Street Corp.
    
15,000
      
1,324,650
      
2.48
%
SunTrust Banks, Inc.
    
22,000
      
1,585,540
      
2.97
%
The Charles Schwab Corp.
    
45,000
      
2,297,700
      
4.30
%
The Goldman Sachs Group, Inc.
    
9,000
      
2,136,870
      
4.00
%
The PNC Financial Services Group, Inc.
    
14,500
      
2,100,035
      
3.93
%
U.S. Bancorp (c)
    
19,000
      
1,007,190
      
1.89
%
Wells Fargo & Co.
    
25,000
      
1,432,250
      
2.68
%
Zions Bancorporation
    
19,000
      
982,300
      
1.84
%
             
37,126,640
      
69.49
%
Information Technology - 29.85%
                        
Global Payments, Inc.
    
20,000
      
2,251,400
      
4.22
%
Mastercard, Inc., Class A
    
13,900
      
2,752,200
      
5.15
%
PayPal Holdings, Inc. (a)
    
31,500
      
2,587,410
      
4.84
%
Square, Inc., Class A (a)
    
13,000
      
840,450
      
1.57
%
Total System Services, Inc.
    
25,000
      
2,288,500
      
4.28
%
Visa, Inc., Class A
    
20,500
      
2,803,170
      
5.25
%
Zillow Group, Inc., Class A (a)
    
43,000
      
2,423,910
      
4.54
%
             
15,947,040
      
29.85
%
Total Common Stocks (Cost $44,607,218)
            
53,073,680
      
99.34
%
                         
SHORT-TERM INVESTMENTS - 0.17%
                        
Money Market Funds - 0.17%
                        
Fidelity Government Portfolio, Institutional Class, 1.80% (b)
    
90,941
      
90,941
      
0.17
%
Total Short-Term Investments (Cost $90,941)
            
90,941
      
0.17
%
                         
Total Investments (Cost $44,698,159) - 99.51%
            
53,164,621
      
99.51
%
Other Assets in Excess of Liabilities - 0.49%
            
263,022
      
0.49
%
TOTAL NET ASSETS - 100.00%
          
$
53,427,643
      
100.00
%
                         
Percentages are stated as a percent of net assets.
                        
 
(a)
Non-income producing security.
                  
(b)
The rate listed is the fund’s seven-day yield as of July 31, 2018.
              
(c)
Investment in affiliated security. Quasar Distributors, LLC, which serves as the Fund’s distributor, is a subsidiary of U.S. Bancorp. Details of transactions with this affiliated company for the nine-month period ended July 31, 2018, are as follows:
           
 
Issuer
U.S. Bancorp
              
 
Beginning Cost
 $ 
838,120
              
 
Purchase Cost
 $ 
 534,575
              
 
Sales Cost
 $ 
(369,840)
              
 
Ending Cost
 $ 
1,002,855
              
 
Dividend Income
 $ 
 16,800
              
 
Net Change in Unrealized Appreciation
 $ 
(82,005)
              
 
Realized Gain
 $ 
48,349
              
 
Shares
  
 19,000
              
 
Market Value
 $ 
1,007,190
              
                     
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.
 
 
Summary of Fair Value Exposure at July 31, 2018
              
 
The Fund follows fair valuation 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 valuationtechniques 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.
                 
Following is a description of the valuation techniques applied to the Fund’s major categories of assets and liabilities measured at fair value 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 will generally be 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”) will generally be 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 will generally be 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 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 registered investment companies (e.g., mutual funds) are generally priced at the ending NAV provided by the applicable registered investment company’s service agent and will be 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.  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 exceeded 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 market hierarchy depending on the inputs used and market activity levels for specific securities.
 
The Board of Trustees of the Fund (the “Board”) has adopted fair value pricing procedures that are followed when a price for a security is 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.  Fair value pricing determinations are made in good faith in accordance with these procedures. There are numerous criteria that will be given consideration 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 fair valuation 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.  The effect of using fair value pricing is that the Fund’s NAV will reflect the affected portfolio securities’ values as determined by the Board or its designee 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 and are generally classified in Level 2 prices of the fair valuation hierarchy.  Because the Fund may invest in foreign securities, the value of the Fund’s portfolio securities may change on days when you will not be able to purchase or redeem your shares. 
 
The Board has delegated day-to-day valuation matters to a Valuation Committee comprised of one or more representatives from Hennessy Advisors, Inc., the Fund’s investment advisor.  The function of the Valuation Committee is to value securities where current and reliable market quotations are not readily available.  All actions taken by the Valuation Committee are reviewed by the Board.
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 valuation hierarchy of the Fund’s securities as of July 31, 2018, are as follows:
 
   
Level 1
    
Level 2
    
Level 3
    
Total
  
Common Stocks
                        
Financials
  
$
37,126,640
    
$
–
    
$
–
    
$
37,126,640
  
Information Technology
    
15,947,040
      
–
      
–
      
15,947,040
  
Total Common Stocks
  
$
53,073,680
    
$
–
    
$
–
    
$
53,073,680
  
                                 
Short-Term Investments
                                
Money Market Funds
  
$
90,941
    
$
–
    
$
–
    
$
90,941
  
Total Short-Term Investments
  
$
90,941
    
$
–
    
$
–
    
$
90,941
  
                                 
Total Investments
  
$
53,164,621
    
$
–
    
$
–
    
$
53,164,621
  



Hennessy Technology Fund
                  
Schedule of Investments
                  
July 31, 2018 (Unaudited)
                  
   
Number of
          
% of
  
   
Shares
    
Value
    
Net Assets
  
COMMON STOCKS - 91.72%
                  
Information Technology - 91.72%
                  
Accenture PLC, Class A (b)
    
444
    
$
70,743
      
1.54
%
Advanced Micro Devices, Inc. (a)
    
4,680
      
85,784
      
1.86
%
Alpha & Omega Semiconductor Ltd. (a)(b)
    
5,047
      
67,428
      
1.47
%
Amkor Technology, Inc. (a)
    
8,268
      
71,766
      
1.56
%
Apple, Inc.
    
371
      
70,598
      
1.53
%
Applied Materials, Inc.
    
1,570
      
76,349
      
1.66
%
Arrow Electronics, Inc. (a)
    
935
      
70,910
      
1.54
%
Automatic Data Processing, Inc.
    
529
      
71,410
      
1.55
%
Booz Allen Hamilton Holding Corp.
    
1,589
      
75,112
      
1.63
%
Box, Inc., Class A (a)
    
2,672
      
64,021
      
1.39
%
Broadridge Financial Solutions, Inc.
    
603
      
68,127
      
1.48
%
Cardtronics PLC, Class A (a)(b)
    
2,904
      
73,529
      
1.60
%
CDW Corp. of Delaware
    
846
      
71,140
      
1.55
%
Cheetah Mobile, Inc. - ADR (a)(b)
    
7,053
      
60,092
      
1.31
%
Coherent, Inc. (a)
    
471
      
74,446
      
1.62
%
Cornerstone OnDemand, Inc. (a)
    
1,383
      
68,320
      
1.49
%
DXC Technology Co.
    
845
      
71,605
      
1.56
%
EVERTEC, Inc. (b)
    
3,206
      
74,700
      
1.62
%
F5 Networks, Inc. (a)
    
402
      
68,895
      
1.50
%
First Data Corp., Class A (a)
    
3,409
      
79,293
      
1.72
%
Fiserv, Inc. (a)
    
943
      
71,178
      
1.55
%
Fortinet, Inc. (a)
    
1,134
      
71,340
      
1.55
%
Hortonworks, Inc. (a)
    
3,975
      
69,245
      
1.51
%
Ichor Holdings, Ltd. (a)(b)
    
3,422
      
71,862
      
1.56
%
Intuit, Inc.
    
343
      
70,054
      
1.52
%
Jabil Circuit, Inc.
    
2,445
      
68,876
      
1.50
%
KLA-Tencor Corp.
    
609
      
71,509
      
1.55
%
LG Display Co., Ltd. - ADR (a)(b)
    
8,829
      
82,816
      
1.80
%
Logitech International S.A. (b)
    
1,644
      
72,089
      
1.57
%
Mastercard, Inc., Class A
    
355
      
70,290
      
1.53
%
Match Group, Inc. (a)
    
1,812
      
65,449
      
1.42
%
Mimecast Ltd. (a)(b)
    
1,602
      
57,528
      
1.25
%
NCR Corp. (a)
    
2,378
      
66,394
      
1.44
%
NetApp, Inc.
    
928
      
71,939
      
1.56
%
ON Semiconductor Corp. (a)
    
3,143
      
69,303
      
1.51
%
Palo Alto Networks, Inc. (a)
    
352
      
69,788
      
1.52
%
Paychex, Inc.
    
1,063
      
73,368
      
1.60
%
Paycom Software, Inc. (a)
    
655
      
69,594
      
1.51
%
Paylocity Holding Corp. (a)
    
1,236
      
71,688
      
1.56
%
Red Hat, Inc. (a)
    
538
      
75,982
      
1.65
%
Sabre Corp.
    
2,855
      
70,290
      
1.53
%
Sanmina Corp. (a)
    
2,375
      
69,113
      
1.50
%
Science Applications International Corp.
    
809
      
68,255
      
1.48
%
Seagate Technology PLC (b)
    
1,274
      
67,038
      
1.46
%
ServiceNow, Inc. (a)
    
423
      
74,431
      
1.62
%
Shutterstock, Inc. (a)
    
1,502
      
69,197
      
1.50
%
SMART Global Holdings, Inc. (a)(b)
    
2,212
      
67,532
      
1.47
%
SolarEdge Technologies, Inc. (a)
    
1,367
      
72,793
      
1.58
%
Splunk, Inc. (a)
    
720
      
69,192
      
1.50
%
Syntel, Inc. (a)
    
2,186
      
88,730
      
1.93
%
Systemax, Inc.
    
2,120
      
94,806
      
2.06
%
Tech Data Corp. (a)
    
810
      
67,562
      
1.47
%
The Ultimate Software Group, Inc. (a)
    
264
      
73,099
      
1.59
%
TTM Technologies, Inc. (a)
    
3,953
      
68,624
      
1.49
%
Ubiquiti Networks, Inc. (a)
    
838
      
69,202
      
1.50
%
Versum Materials, Inc.
    
1,752
      
67,540
      
1.47
%
Vishay Intertechnology, Inc.
    
2,964
      
74,100
      
1.61
%
Weibo Corp. - ADR (a)(b)
    
815
      
67,441
      
1.47
%
Xerox Corp.
    
2,923
      
75,910
      
1.65
%
Total Common Stocks (Cost $3,912,101)
            
4,219,415
      
91.72
%
                         
SHORT-TERM INVESTMENTS - 8.57%
                        
Money Market Funds - 8.57%
                        
Fidelity Government Portfolio, Institutional Class, 1.80% (c)
    
229,000
      
229,000
      
4.98
%
The Government & Agency Portfolio, Institutional Class, 1.82% (c)
    
165,103
      
165,103
      
3.59
%
             
394,103
      
8.57
%
Total Short-Term Investments (Cost $394,103)
            
394,103
      
8.57
%
 
Total Investments (Cost $4,306,204) - 100.29%
            
4,613,518
      
100.29
%
Liabilities in Excess of Other Assets - (0.29)%
            
(13,322
)
    
(0.29
)%
TOTAL NET ASSETS - 100.00%
          
$
4,600,196
      
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 July 31, 2018.
              
                   
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.
 
Summary of Fair Value Exposure at July 31, 2018
              
 
The Fund follows fair valuation 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 valuationtechniques 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.
                 
Following is a description of the valuation techniques applied to the Fund’s major categories of assets and liabilities measured at fair value 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 will generally be 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”) will generally be 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 will generally be 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 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 registered investment companies (e.g., mutual funds) are generally priced at the ending NAV provided by the applicable registered investment company’s service agent and will be 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.  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 exceeded 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 market hierarchy depending on the inputs used and market activity levels for specific securities.
 
The Board of Trustees of the Fund (the “Board”) has adopted fair value pricing procedures that are followed when a price for a security is 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.  Fair value pricing determinations are made in good faith in accordance with these procedures. There are numerous criteria that will be given consideration 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 fair valuation 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.  The effect of using fair value pricing is that the Fund’s NAV will reflect the affected portfolio securities’ values as determined by the Board or its designee 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 and are generally classified in Level 2 prices of the fair valuation hierarchy.  Because the Fund may invest in foreign securities, the value of the Fund’s portfolio securities may change on days when you will not be able to purchase or redeem your shares. 
 
The Board has delegated day-to-day valuation matters to a Valuation Committee comprised of one or more representatives from Hennessy Advisors, Inc., the Fund’s investment advisor.  The function of the Valuation Committee is to value securities where current and reliable market quotations are not readily available.  All actions taken by the Valuation Committee are reviewed by the Board.
 
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 valuation hierarchy of the Fund’s securities as of July 31, 2018, are as follows:
 
   
Level 1
    
Level 2
    
Level 3
    
Total
  
Common Stocks
                        
Information Technology
  
$
4,219,415
    
$
–
    
$
–
    
$
4,219,415
  
Total Common Stocks
  
$
4,219,415
    
$
–
    
$
–
    
$
4,219,415
  
                                 
Short-Term Investments
                                
Money Market Funds
  
$
394,103
    
$
–
    
$
–
    
$
394,103
  
Total Short-Term Investments
  
$
394,103
    
$
–
    
$
–
    
$
394,103
  
                                 
Total Investments
  
$
4,613,518
    
$
–
    
$
–
    
$
4,613,518
  


 
Hennessy Japan Fund
                  
Schedule of Investments
                  
July 31, 2018 (Unaudited)
                  
   
Number of
          
% of
  
   
Shares
    
Value
    
Net Assets
  
COMMON STOCKS - 91.46%
                  
Consumer Discretionary - 19.16%
                  
Asics Corp.
    
930,000
    
$
15,079,283
      
3.12
%
Fast Retailing Co., Ltd.
    
54,800
      
23,892,143
      
4.94
%
Isuzu Motors, Ltd.
    
438,900
      
5,921,215
      
1.22
%
Ryohin Keikaku Co., Ltd.
    
29,600
      
9,490,319
      
1.96
%
Shimano, Inc.
    
166,700
      
23,928,229
      
4.94
%
Toyota Motor Corp.
    
220,900
      
14,431,646
      
2.98
%
             
92,742,835
      
19.16
%
Consumer Staples - 15.71%
                        
Japan Tobacco, Inc.
    
870,600
      
24,728,575
      
5.11
%
Kao Corp.
    
321,400
      
23,388,917
      
4.83
%
Pigeon Corp.
    
75,400
      
3,621,142
      
0.75
%
Unicharm Corp.
    
800,500
      
24,319,622
      
5.02
%
             
76,058,256
      
15.71
%
Financials - 8.12%
                        
Mitsubishi UFJ Financial Group, Inc.
    
3,628,900
      
22,374,133
      
4.62
%
Sumitomo Mitsui Financial Group, Inc.
    
425,800
      
16,926,897
      
3.50
%
             
39,301,030
      
8.12
%
Health Care - 9.71%
                        
Rohto Pharmaceutical Co., Ltd.
    
797,600
      
23,896,257
      
4.94
%
Terumo Corp.
    
421,100
      
23,085,838
      
4.77
%
             
46,982,095
      
9.71
%
Industrials - 26.89%
                        
Daikin Industries
    
201,200
      
23,968,019
      
4.95
%
Kubota Corp.
    
822,200
      
13,746,840
      
2.84
%
Misumi Group, Inc.
    
830,200
      
21,101,180
      
4.36
%
Mitsubishi Corp.
    
830,200
      
23,142,990
      
4.78
%
Nidec Corp.
    
153,600
      
22,226,427
      
4.60
%
Recruit Holdings Co., Ltd.
    
949,700
      
25,947,623
      
5.36
%
             
130,133,079
      
26.89
%
Information Technology - 4.58%
                        
Keyence Corp.
    
42,100
      
22,180,486
      
4.58
%
                         
Materials - 1.80%
                        
Fuji Seal International, Inc.
    
232,200
      
8,690,757
      
1.80
%
                         
Telecommunication Services - 5.49%
                        
Softbank Group Co.
    
320,600
      
26,550,606
      
5.49
%
Total Common Stocks (Cost $348,033,409)
            
442,639,144
      
91.46
%
                           
SHORT-TERM INVESTMENTS - 6.32%
                        
Money Market Funds - 6.32%
                        
Fidelity Government Portfolio, Institutional Class, 1.80% (a)
    
24,022,000
      
24,022,000
      
4.96
%
The Government & Agency Portfolio, Institutional Class, 1.82% (a)
    
6,555,205
      
6,555,205
      
1.36
%
             
30,577,205
      
6.32
%
Total Short-Term Investments (Cost $30,577,205)
            
30,577,205
      
6.32
%
                           
Total Investments (Cost $378,610,614) - 97.78%
            
473,216,349
      
97.78
%
Other Assets in Excess of Liabilities - 2.22%
            
10,752,299
      
2.22
%
TOTAL NET ASSETS - 100.00%
          
$
483,968,648
      
100.00
%
                           
Percentages are stated as a percent of net assets.
                        
 
                          
(a)
The rate listed is the fund’s seven-day yield as of July 31, 2018.
                        
                           
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.
  
 
 
Summary of Fair Value Exposure at July 31, 2018
              
 
The Fund follows fair valuation 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 valuationtechniques 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.
                 
Following is a description of the valuation techniques applied to the Fund’s major categories of assets and liabilities measured at fair value 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 will generally be 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”) will generally be 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 will generally be 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 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 registered investment companies (e.g., mutual funds) are generally priced at the ending NAV provided by the applicable registered investment company’s service agent and will be 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.  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 exceeded 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 market hierarchy depending on the inputs used and market activity levels for specific securities.
 
The Board of Trustees of the Fund (the “Board”) has adopted fair value pricing procedures that are followed when a price for a security is 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.  Fair value pricing determinations are made in good faith in accordance with these procedures. There are numerous criteria that will be given consideration 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 fair valuation 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.  The effect of using fair value pricing is that the Fund’s NAV will reflect the affected portfolio securities’ values as determined by the Board or its designee 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 and are generally classified in Level 2 prices of the fair valuation hierarchy.  Because the Fund may invest in foreign securities, the value of the Fund’s portfolio securities may change on days when you will not be able to purchase or redeem your shares. 
 
The Board has delegated day-to-day valuation matters to a Valuation Committee comprised of one or more representatives from Hennessy Advisors, Inc., the Fund’s investment advisor.  The function of the Valuation Committee is to value securities where current and reliable market quotations are not readily available.  All actions taken by the Valuation Committee are reviewed by the Board.
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 valuation hierarchy of the Fund’s securities as of July 31, 2018, are as follows:
 
   
Level 1
    
Level 2
    
Level 3
    
Total
  
Common Stocks
                        
Consumer Discretionary
  
$
92,742,835
    
$
–
    
$
–
    
$
92,742,835
  
Consumer Staples
    
76,058,256
      
–
      
–
      
76,058,256
  
Financials
    
39,301,030
      
–
      
–
      
39,301,030
  
Health Care
    
46,982,095
      
–
      
–
      
46,982,095
  
Industrials
    
130,133,079
      
–
      
–
      
130,133,079
  
Information Technology
    
22,180,486
      
–
      
–
      
22,180,486
  
Materials
    
8,690,757
      
–
      
–
      
8,690,757
  
Telecommunication Services
    
26,550,606
      
–
      
–
      
26,550,606
  
Total Common Stocks
  
$
442,639,144
    
$
–
    
$
–
    
$
442,639,144
  
                                 
Short-Term Investments
                                
Money Market Funds
  
$
30,577,205
    
$
–
    
$
–
    
$
30,577,205
  
Total Short-Term Investments
  
$
30,577,205
    
$
–
    
$
–
    
$
30,577,205
  
                                 
Total Investments
  
$
473,216,349
    
$
–
    
$
–
    
$
473,216,349
  



Hennessy Japan Small Cap Fund
                  
Schedule of Investments
                  
July 31, 2018 (Unaudited)
                  
   
Number of
          
% of
  
   
Shares
    
Value
    
Net Assets
  
COMMON STOCKS - 97.53%
                  
Consumer Discretionary - 18.05%
                  
Bic Camera, Inc.
    
237,400
    
$
3,575,384
      
1.57
%
DCM Holdings Co., Ltd.
    
511,100
      
4,575,514
      
2.00
%
Doshisha Co., Ltd.
    
200,300
      
4,510,624
      
1.97
%
Foster Electric Co., Ltd.
    
155,900
      
2,081,641
      
0.91
%
Hiramatsu, Inc.
    
505,100
      
2,190,882
      
0.96
%
Kasai Kogyo Co., Ltd.
    
272,900
      
3,402,250
      
1.49
%
Komeda Holdings Co., Ltd.
    
167,500
      
3,216,228
      
1.41
%
Macromill, Inc.
    
171,100
      
4,024,442
      
1.76
%
Pacific Industrial Co., Ltd.
    
253,100
      
4,135,525
      
1.81
%
Resorttrust, Inc.
    
174,600
      
3,194,845
      
1.40
%
Saizeriya Co., Ltd.
    
159,000
      
3,294,755
      
1.44
%
Seiren Co., Ltd.
    
169,800
      
3,038,678
      
1.33
%
             
41,240,768
      
18.05
%
Consumer Staples - 4.21%
                        
Kobe Bussan Co., Ltd.
    
79,700
      
3,927,443
      
1.72
%
Nishimoto Co., Ltd.
    
71,600
      
3,483,468
      
1.52
%
Soiken Holdings, Inc.
    
348,600
      
2,207,296
      
0.97
%
             
9,618,207
      
4.21
%
Financials - 2.66%
                        
Aozora Bank, Ltd.
    
110,400
      
4,122,166
      
1.81
%
Lifenet Insurance Co. (a)
    
389,800
      
1,945,252
      
0.85
%
             
6,067,418
      
2.66
%
Health Care - 4.91%
                        
JEOL Ltd.
    
444,000
      
4,411,608
      
1.93
%
Nihon Kohden Corp.
    
156,800
      
4,220,972
      
1.85
%
Ship Healthcare Holdings, Inc.
    
66,800
      
2,589,796
      
1.13
%
             
11,222,376
      
4.91
%
Industrials - 40.60%
                        
BELLSYSTEM24 Holdings, Inc.
    
297,700
      
5,255,644
      
2.30
%
Benefit One, Inc.
    
177,200
      
5,087,081
      
2.23
%
Daihen Corp.
    
307,000
      
1,952,126
      
0.86
%
EF-ON, Inc.
    
299,160
      
3,761,740
      
1.65
%
Hamakyorex Co., Ltd.
    
142,400
      
4,922,202
      
2.16
%
Hanwa Co., Ltd.
    
122,200
      
4,666,583
      
2.04
%
Hito Communication, Inc.
    
196,800
      
3,162,810
      
1.38
%
Kanematsu Corp.
    
320,600
      
4,596,179
      
2.01
%
Kito Corp.
    
249,600
      
4,647,562
      
2.03
%
Maeda Kosen Co., Ltd.
    
143,800
      
2,765,014
      
1.21
%
METAWATER Co., Ltd.
    
116,700
      
3,428,516
      
1.50
%
MIRAIT Holdings Corp.
    
277,100
      
4,252,592
      
1.86
%
Nihon Flush Co., Ltd.
    
143,300
      
3,030,940
      
1.33
%
Nippon Koei Co., Ltd.
    
173,800
      
4,779,636
      
2.09
%
Nippon Yusoki Co., Ltd.
    
439,200
      
5,400,885
      
2.36
%
Nissei ASB Machine Co., Ltd.
    
35,600
      
1,916,666
      
0.84
%
Okamura Corp.
    
332,400
      
4,783,183
      
2.09
%
Sato Holdings Corp.
    
159,700
      
4,663,243
      
2.04
%
SBS Holdings, Inc.
    
371,700
      
4,424,565
      
1.94
%
Shibuya Corp.
    
110,400
      
3,534,696
      
1.55
%
Takeei Corp.
    
313,500
      
2,929,907
      
1.28
%
Takuma Co., Ltd.
    
384,700
      
4,706,610
      
2.06
%
Tocalo Co., Ltd.
    
171,200
      
1,953,684
      
0.86
%
Tonami Holdings Co., Ltd.
    
36,200
      
2,133,506
      
0.93
%
             
92,755,570
      
40.60
%
 
Information Technology - 18.34%
                        
Digital Garage, Inc.
    
119,700
      
4,496,177
      
1.97
%
Elecom Co., Ltd.
    
196,500
      
4,662,295
      
2.04
%
Kakaku.com., Inc.
    
196,600
      
4,135,431
      
1.81
%
Kyosan Electric Manufacturing Co., Ltd.
    
264,000
      
1,631,481
      
0.71
%
Macnica Fuji Electronics Holdings, Inc.
    
252,400
      
4,264,040
      
1.87
%
Mimaki Engineering Co., Ltd.
    
442,900
      
3,628,282
      
1.59
%
Nihon Unisys, Ltd.
    
152,400
      
3,509,636
      
1.54
%
NS Solutions Corp.
    
185,500
      
4,887,385
      
2.14
%
OBIC Business Consultants Co., Ltd.
    
68,400
      
5,481,054
      
2.40
%
Sun Corp.
    
293,500
      
1,690,417
      
0.74
%
UMC Electronics Co., Ltd.
    
151,500
      
3,509,234
      
1.53
%
             
41,895,432
      
18.34
%
Materials - 8.76%
                        
Asahi Holdings, Inc.
    
260,800
      
5,219,965
      
2.29
%
Asia Pile Holdings Co.
    
692,000
      
4,895,336
      
2.14
%
Hakudo Co., Ltd.
    
56,700
      
1,098,352
      
0.48
%
Kuriyama Holdings Corp.
    
175,900
      
3,155,707
      
1.38
%
Stella Chemifa Corp.
    
143,900
      
4,465,707
      
1.95
%
Tokyo Rope Manufacturing Co., Ltd.
    
74,000
      
1,186,621
      
0.52
%
             
20,021,688
      
8.76
%
Total Common Stocks (Cost $201,308,205)
            
222,821,459
      
97.53
%
                         
SHORT-TERM INVESTMENTS - 1.64%
                        
Money Market Funds - 1.64%
                        
Fidelity Government Portfolio, Institutional Class, 1.80% (b)
    
3,757,994
      
3,757,994
      
1.64
%
Total Short-Term Investments (Cost $3,757,994)
            
3,757,994
      
1.64
%
                         
Total Investments (Cost $205,066,199) - 99.17%
            
226,579,453
      
99.17
%
Other Assets in Excess of Liabilities - 0.83%
            
1,887,577
      
0.83
%
TOTAL NET ASSETS - 100.00%
          
$
228,467,030
      
100.00
%
 
Percentages are stated as a percent of net assets.
              
 
                
(a)
Non-income producing security.
              
(b)
The rate listed is the fund’s seven-day yield as of July 31, 2018.
              
                 
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.
 
 
Summary of Fair Value Exposure at July 31, 2018
              
 
The Fund follows fair valuation 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 valuationtechniques 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.
                 
Following is a description of the valuation techniques applied to the Fund’s major categories of assets and liabilities measured at fair value 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 will generally be 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”) will generally be 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 will generally be 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 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 registered investment companies (e.g., mutual funds) are generally priced at the ending NAV provided by the applicable registered investment company’s service agent and will be 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.  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 exceeded 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 market hierarchy depending on the inputs used and market activity levels for specific securities.
 
The Board of Trustees of the Fund (the “Board”) has adopted fair value pricing procedures that are followed when a price for a security is 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.  Fair value pricing determinations are made in good faith in accordance with these procedures. There are numerous criteria that will be given consideration 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 fair valuation 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.  The effect of using fair value pricing is that the Fund’s NAV will reflect the affected portfolio securities’ values as determined by the Board or its designee 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 and are generally classified in Level 2 prices of the fair valuation hierarchy.  Because the Fund may invest in foreign securities, the value of the Fund’s portfolio securities may change on days when you will not be able to purchase or redeem your shares. 
 
The Board has delegated day-to-day valuation matters to a Valuation Committee comprised of one or more representatives from Hennessy Advisors, Inc., the Fund’s investment advisor.  The function of the Valuation Committee is to value securities where current and reliable market quotations are not readily available.  All actions taken by the Valuation Committee are reviewed by the Board.
 
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 valuation hierarchy of the Fund’s securities as of July 31, 2018, are as follows:
 
   
Level 1
    
Level 2
    
Level 3
    
Total
  
Common Stocks
                        
Consumer Discretionary
  
$
41,240,768
    
$
–
    
$
–
    
$
41,240,768
  
Consumer Staples
    
9,618,207
      
–
      
–
      
9,618,207
  
Financials
    
6,067,418
      
–
      
–
      
6,067,418
  
Health Care
    
11,222,376
      
–
      
–
      
11,222,376
  
Industrials
    
92,755,570
      
–
      
–
      
92,755,570
  
Information Technology
    
41,895,432
      
–
      
–
      
41,895,432
  
Materials
    
20,021,688
      
–
      
–
      
20,021,688
  
Total Common Stocks
  
$
222,821,459
    
$
–
    
$
–
    
$
222,821,459
  
                                 
Short-Term Investments
                                
Money Market Funds
  
$
3,757,994
    
$
–
    
$
–
    
$
3,757,994
  
Total Short-Term Investments
  
$
3,757,994
    
$
–
    
$
–
    
$
3,757,994
  
                                 
Total Investments
  
$
226,579,453
    
$
–
    
$
–
    
$
226,579,453
  

 
Item 2. Controls and Procedures.
(a)
The Registrant’s President/Chief Executive Officer and Treasurer/Chief Financial Officer have concluded that the Registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “1940 Act”)) (17 CFR 270.30a-3(c)) are effective as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rule 13a-15(b) or Rule 15d‑15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(d)).

(b)
There were no changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) (17 CFR 270.30a-3(d)) that occurred during the Registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting.
 
Item 3. Exhibits.
Separate certifications for each principal executive officer and principal financial officer of the Registrant as required by Rule 30a-2(a) under the 1940 Act (17 CFR 270.30a-2(a)).  Filed herewith.

 
 
SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
 
HENNESSY FUNDS TRUST
(Registrant)
   
   
By:
 /s/ Neil J. Hennessy  
 
Neil J. Hennessy
 
President
   
Date:     September 27, 2018
 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By:          /s/ Neil J. Hennessy                                     
 Neil J. Hennessy, President
 
Date:       September  27, 2018

By:           /s/ Teresa M. Nilsen                                    
 Teresa M. Nilsen, Treasurer
 
Date:       September 27, 2018