Fund Evaluator:
Hennessy Equity and Income Institutional (HEIIX)
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Best Performing in Moderate Allocation Over the Last Year
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Fund Details
Hennessy Equity and Income Institutional Overview
Hennessy Equity and Income Institutional (HEIIX) is an actively managed Allocation Moderate Allocation fund. Hennessy launched the fund in 1997.
The investment seeks long-term capital growth and current income. The fund seeks income and long-term capital appreciation with reduced volatility of returns. It will invest up to 70% of its assets in equity securities and its remaining assets in fixed income securities. The fund invests primarily in domestic companies whose securities are listed on U.S. national securities exchanges.
About Hennessy Equity and Income Institutional (HEIIX)
There are 5 members of the management team with an average tenure of 15.88 years: Gary Cloud (2007), Peter Greig (2007), J. Brian Campbell (2010), Sam Hutchings (2020), Stephen Goddard (2007). Management tenure is more important for actively managed funds than passive index funds.
The fund has 1 primary benchmark: S&P 500 (TR) (1970) index with a weighting of 100%. Hennessy Equity and Income Institutional has 93 securities in its portfolio. The top 10 holdings constitute 36.7% of the fund’s assets. The fund meets the SEC requirement of being classified as a diversified fund. The fund is not considered to have an ESG focus with its investment selection and management.
Hennessy Equity and Income Institutional is part of the Allocation global asset class and is within the Allocation fund group. Hennessy Equity and Income Institutional has 6.5% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 63.3%. There is 6.5% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 29.3% (29.3% domestic bond, 0.0% foreign bond and 0.0% convertible bond). Hennessy Equity and Income Institutional has 0.9% of the portfolio in cash.
Assets Under Management
The fund has $16 million in total assets, which is below the $2 billion average for the Moderate Allocation category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.
HEIIX Performance and Fees
The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Hennessy Equity and Income Institutional expense ratio is high compared to funds in the Moderate Allocation category. Hennessy Equity and Income Institutional has an expense ratio of 1.26%, which is 27% higher than its category average, making the fund expense ratio grade a D. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.
High portfolio turnover can translate to higher expenses and lower aftertax returns. Hennessy Equity and Income Institutional has a portfolio turnover rate of 27%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 52% for the Moderate Allocation category.
Recently, in the month of July 2026, Hennessy Equity and Income Institutional returned -0.1%, which earned it a grade of C, as the Moderate Allocation category had an average return of -0.3%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.
Hennessy Equity and Income Institutional has a trailing yield of 0.91%, which is below the 1.97% category average. The fund normally distributes its income quarterly and its capital gains annually.
It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.
Hennessy Equity and Income Institutional Grades
Year to date, the fund has returned 7.4%, 1.0 percentage points better than the category, which translates into a grade of B. The fund has returned 12.8% over the past year (grade of C), 8.9% over the past three years (grade of F) and 5.1% per year over the past five years (grade of F) and 7.3% per year over the past 10 years (grade of F).
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HEIIX Trailing NAV Total Returns Data as of 7/31/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| HEIIX Return (NAV) | -0.1% | 0.9% | 12.8% | 8.9% | 5.1% | 7.3% |
| HEIIX Grade | C | F | C | F | F | F |
| +/- Category | 0.2% | -1.3% | -0.2% | -3.1% | -1.5% | -1.2% |
| Moderate Allocation Avg | -0.3% | 2.1% | 13.1% | 12.0% | 6.6% | 8.5% |
| HEIIX Tax Cost Ratio | na | na | 2.9% | 2.7% | 2.2% | 2.1% |
HEIIX Annual NAV Total ReturnsData as of 7/31/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| HEIIX Return (NAV) | 7.4% | 7.2% | 10.6% | 10.9% | -13.6% | 17.1% | 9.3% | 16.5% | -4.0% | 13.9% | 6.2% |
| HEIIX Grade | B | F | D | F | C | A | D | F | B | C | D |
| +/- Category | 1.0% | -6.1% | -1.7% | -3.4% | 0.4% | 2.8% | -3.6% | -3.3% | 1.1% | 0.1% | -1.5% |
| Moderate Allocation Avg | 6.4% | 13.4% | 12.2% | 14.3% | -14.0% | 14.4% | 12.9% | 19.8% | -5.1% | 13.8% | 7.7% |
| Risk Measures | |
| Standard Deviation: | 9.3% |
| Total Risk Index: | 0.76 - Below Average |
| Category Risk Index: | 1.00 - Average |
| Category Risk Grade: | C (51% Rank) |
| Beta: | 0.85 |
| R-Squared: | 75% |
| Leveraged Fund: | No |
| Inverse Fund: | No |
| Portfolio Characteristics | |
| Equity Investment Style: | Large-Cap Value |
| Bond Investment Style: | na |
| Yield: | 0.9% |
| Dividend Distribution: | Quarterly |
| Cap Gains Distribution: | Annually |
| Total Assets: | $38 Mil |
| Fund Total Assets: | $ 16 Mil |
| Share Class Type: | Inst |
| Portfolio Turnover: | 27% |
Management Team
| Number of Managers: 5 | |||
| Longest Tenure: 19.1 years | |||
| Average Tenure: 15.9 years | |||
| Managers (Year): Cloud Gary (2007), Greig Peter (2007), Goddard Stephen (2007), Campbell J. Brian (2010), Hutchings Sam (2020) | |||
Portfolio Composition (as of 6/30/26)
| # of Holdings: | 93 |
| % in Top 10 Holdings: | 36.7% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | 6.5% |
Portfolio Allocation |
|
| Domestic Stock: | 63.3% |
| Foreign Stock: | 6.5% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 29.3% |
| Foreign Bond: | 0.0% |
| Convertible Bond: | 0.0% |
| Other: | 0.0% |
| Cash: | 0.9% |
Purchase Information
| Fund Family: | Hennessy |
| Phone Number: | 800-966-4354 |
| Website: | www.hennessyfunds.com |
| Status: | Open |
| Inception Date: | June 3, 1997 |
| Min. Initial Purchase: | $250,000 |
| Min. Initial IRA Purchase: | $ 0 |
| True No-Load: | Yes |
| Front Load Maximum: | 0.00% |
| Deferred Charge Maximum: | 0.00% |
| Redemption Charge Maximum: | 0.00% |
| 12b-1 Fee: | na |
Expenses and Fees | |
| Expense Ratio (%): | 1.26% ( Rating : High ) |
| Category Average Expense Ratio (%): | 0.99% |
| Share Class: | Hennessy Equity and Income Institutional |
| Min. Subsequent Purchase: | $ 0 |
| Min. Subsequent IRA Purchase: | $ 0 |
