Advisors Acquires Assets Under Management of Lindner Asset Management
CA - February 27, 2004 - Hennessy Advisors, Inc. (OTCB:HNNA) Shareholders
of four mutual funds of Lindner Asset Management, Inc., based in
Deerfield, Illinois, voted to approve the mergers between the Lindner
Funds and the Hennessy Funds. The Lindner Funds Board of Directors
had unanimously recommended approval of the mergers. Hennessy Advisors,
Inc. acquired the assets under management of the Lindner Small-Cap
Growth, Lindner Communications, Lindner Growth & Income and
Lindner Large-Cap Growth Funds. Today the assets of those funds
were transferred into existing Hennessy mutual funds. Shareholder
approval to acquire the Lindner Market Neutral Fund is still pending.
The four acquired Lindner Funds have approximately 25,000 shareholders
and net assets of $291 million. Including assets from this acquisition,
Hennessy Advisors, Inc. manages assets totaling $1.34 billion. "We
want to welcome the Lindner shareholders to the Hennessy family
of funds and thank them for their strong vote of confidence in us,"
said Neil J. Hennessy, president, chairman and CEO of Hennessy Advisors,
Inc. Hennessy attributes the overwhelmingly positive vote to strong
fund performance and a highly disciplined management style that
puts shareholders first. "Our funds are built on solid, strategic
investment formulas and have produced strong results for our clients,"
he added. "We believe in serving shareholders with honesty
and integrity, and we are committed to managing our funds in the
sole interest of our long-term investors."
Funds is able to offer lower expense ratios than Lindner on three
funds, while maintaining the same expense ratio as Lindner on one
fund. Lindner shareholders will not be subject to any sales charges
as a result of this transaction and should not experience any adverse
agreement, like any that we pursue, had to benefit existing shareholders
of Hennessy Funds and Hennessy Advisors, as well as Lindner shareholders,"
Hennessy commented. Many existing Hennessy Funds shareholders will
see a reduction in expenses. The expense ratio will decrease an
estimated 17% for the Cornerstone Value Fund and an estimated 35%
for the Hennessy Total Return Fund due to the increased asset size
of these two funds after the Lindner acquisition. "We are happy
to pass on savings and roll back expenses for existing Hennessy
shareholders as a result of the Lindner acquisition," he added.
Hennessy Advisors manages the Hennessy Funds, a family of five no-load
mutual funds, satisfying a variety of investment objectives and
risk tolerance levels. Each of the Hennessy Funds employs a unique
mutual fund money management approach combining superb, time-tested
stock selection formulas with unwavering discipline and consistency.
The company manages the Hennessy Cornerstone Growth Fund (HFCGX),
the Hennessy Cornerstone Value Fund (HFCVX), the Hennessy Total
Return Fund (HDOGX), the Hennessy Balanced Fund (HBFBX) and the
Hennessy Focus 30 Fund (HFTFX).
Nothing in this press release shall be considered a solicitation
to buy or an offer to sell a security to any person in any jurisdiction
where such offer, solicitation, purchase or sale would be unlawful
under the securities laws of such jurisdiction.
Statements in this press release regarding Hennessy Advisors, Inc.'s
business that are not historical facts, are "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995. These forward-looking statements involve a number
of risks, uncertainties and other important factors that could cause
the actual results and outcomes to differ materially from any future
results or outcomes expressed or implied by such forward-looking
statements. These risks, uncertainties and other important factors
are described in more detail in the "Risk Factors" section
of the company's annual report on Form 10-KSB for the fiscal year
ended September 30, 2003, filed with the U.S. Securities and Exchange
Commission, including, without limitation, the "Risk Factors"
section of Management's Discussion and Analysis and Results of Operations.
The following factors could affect the actual results of the company:
shareholders may increase redemptions as a result of the change
in investment advisors.
volatility in the equity markets may cause the levels of assets
under management to fluctuate significantly.
- Weak market conditions may lower assets under management and
reduce the company's revenues and income.
performance is not a guarantee of future returns.