NOVATO, Calif. - Hennessy Advisors, Inc. (NASDAQ: HNNA) has completed the acquisition of the CCM Core Impact Equity Fund, incorporating approximately $60 million in assets into its own exchange-traded fund (ETF) offerings. The CCM Core Impact Equity Fund will be reorganized into an existing ETF managed by Hennessy Advisors, a move that has been welcomed by both companies.
Neil Hennessy, Chairman and CEO of Hennessy Advisors, expressed gratitude to the CCM Core Impact Equity Fund shareholders for their confidence and looked forward to providing strong investment management and customer service. Alyssa Greenspan, CEO and President of CCM, also conveyed optimism about the fund's integration into the Hennessy Stance ESG ETF and its future growth.
The transition to Hennessy’s ETF does come with unique characteristics and risks, as the fund will not disclose its holdings daily, unlike traditional ETFs. This could lead to higher trading costs and price discrepancies between the fund's shares on the exchange and the actual value of the portfolio. To mitigate this, a "Portfolio Reference Basket" will be published on the fund’s website to aid trading, although it will not reflect the fund's actual portfolio.
The fund's strategy of keeping certain investment information private may reduce the risk of other traders replicating or predicting its strategy, potentially benefiting its performance. Conversely, if the strategy is anticipated by others, it may negatively impact performance.
Hennessy Advisors is known for a broad range of domestic equity, multi-asset, and sector and specialty funds, emphasizing a disciplined investment approach and long-term strategy. The company advises potential investors to review the fund's prospectus and statement of additional information for a full understanding of the unique attributes and associated risks.
Investing in ETFs involves risk, including the possible loss of principal, and there is no guarantee that the fund will achieve its stated objective. The market price of ETF shares may trade at a premium or discount to its net asset value, and there are additional risks such as the lack of an active secondary trading market or the possibility of trading halts.
This article is based on a press release statement.
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