Hennessy Equity and Income transitioned from its traditional 60/40 stock/bond mix to a 70/30 construction beginning in 2021. The shift in the fund’s historically consistent balanced allocation lacked a compelling long-term investment rationale. The fund’s Process rating has been downgraded to Below Average from Average, resulting in a Morningstar Analyst Rating of Neutral for its institutional shares but Negative for the investor shares, down from Neutral.
Will HEIFX outperform in future?
Get our overall rating based on a fundamental assessment of the pillars below.
The Process Pillar is our assessment of how sensible, clearly defined, and repeatable HEIFX’s performance objective and investment process is for both security selection and portfolio construction.
The People Pillar is our evaluation of the HEIFX management team’s experience and ability. We find that high-quality management teams deliver superior performance relative to their benchmarks and/or peers.
The Parent Pillar is our rating of HEIFX’s parent organization’s priorities and whether they’re in line with investors’ interests.