HENNESSY ADVISORS INC
For the period ended Mar 31, 2026. Filed May 6, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2026 · Filed May 6, 2026
HNNA$10.19-3.1%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-12-31; filed 2026-02-05.
0001437749-26-003203
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-05-06.
0001437749-26-015205
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 59 previous paragraphs and 69 current paragraphs.
31 unchanged; 23 reworded; 11 added; 5 removed; 0 previous and 4 current paragraphs rearranged.
Tables are not compared: 8 previous and 10 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (11)
Current report
On a total return basis, the Dow Jones Industrial Average was up 0.71% for the six months ended March 31, 2026. During the most recent quarter, equity prices declined as geopolitical fears coupled with prospective interest rate cuts have seemed to cause investors to reconsider the case for continued economic growth. A joint United States and Israeli military campaign against Iran has had the effect of both spiking oil prices and closing the Strait of Hormuz, a key oil and gas shipping channel. The uncertainty around the potential length of the action and its implications for oil and gas prices has caused global unease. The immediate effect of these dynamics has been rising gasoline prices, the prospect of dampened consumer spending, and the possibility of increased inflation. While the bond market had been expecting two interest rate cuts by the Federal Reserve in 2026, currently the bond market is not pricing in any rate cuts this year on account of an expectation of elevated rates of inflation returning, according to Bloomberg.
Current report
Long-term U.S. bond yields rose during the three months ended March 31, 2026. Higher oil and gas prices may portend a higher level of inflation, especially if a resolution with Iran is not reached soon. Before the conflict in the Middle East, inflation remained above the Federal Reserve’s 2% goal but was slowly making progress toward that goal. Projections compiled by Bloomberg estimate that the Consumer Price Index will advance by 3.1% in 2026, after increasing by 2.7% in 2025.
Current report
For the one‑, three‑, five-, and ten year periods ending March 31, 2026, all 17 Hennessy Funds posted positive total returns (except that the Hennessy Sustainable ETF does not have ten years of performance history).
Current report
Total revenue comprises investment advisory fees and shareholder service fees. Comparing the three months ended March 31, 2025, to the three months ended March 31, 2026, total revenue decreased by 12.3%, from $9.3 million to $8.1 million, investment advisory fees decreased by 12.6%, from $8.7 million to $7.6 million, and shareholder service fees decreased by 8.5%, from $0.60 million to $0.55 million. Comparing the six months ended March 31, 2025, to the six months ended March 31, 2026, total revenue decreased by 13.3%, from $19.0 million to $16.5 million, investment advisory fees decreased by 13.5%, from $17.7 million to $15.3 million, and shareholder service fees decreased by 11.1%, from $1.3 million to $1.1 million.
Current report
The only Hennessy Fund with net inflows was as follows:
Current report
Comparing the six months ended March 31, 2025, to the six months ended March 31, 2026, compensation and benefits expense decreased by 7.4%, from $5.4 million to $5.0 million. As a percentage of total revenue, compensation and benefits expense increased 1.9 percentage points to 30.6%.
Current report
General and Administrative Expense: Comparing the three months ended March 31, 2025, to the three months ended March 31, 2026, general and administrative expense decreased by 9.0%, from $1.8 million to $1.6 million. As a percentage of total revenue, general and administrative expense increased 0.6 percentage points to 20.1%. The dollar value decrease in general and administrative expense was primarily due to decreased sales and distribution expense in the current period.
Current report
Comparing the six months ended March 31, 2025, to the six months ended March 31, 2026, fund distribution and other expense decreased by 12.8%, from $0.52 million to $0.45 million. As a percentage of total revenue, fund distribution and other expense increased 0.1 percentage points to 2.8%.
Current report
In each period, the dollar value decrease in fund distribution and other expense was primarily due to decreased average daily net assets across the Hennessy Funds in the current period, which in turn decreases the fees we pay to financial institutions.
Current report
Comparing the six months ended March 31, 2025, to the six months ended March 31, 2026, sub-advisory fees expense decreased by 5.4%, from $2.2 million to $2.0 million. As a percentage of total revenue, sub-advisory fees expense increased 1.0 percentage points to 12.4%.
Current report
Comparing the six months ended March 31, 2025, to the six months ended March 31, 2026, depreciation expense increased by 16.9% from $0.13 million to $0.15 million. As a percentage of total revenue, depreciation expense increased 0.2 percentage points to 0.9%.
Removed paragraphs (5)
Previous report
On a total return basis, the Dow Jones Industrial Average was up 4.03% for the three months ended December 31, 2025. During the most recent quarter, equity prices increased buoyed by earnings growth, broad margin expansion, expectations of supportive monetary policy and continued strength in large cap technology and artificial intelligence (AI) related companies. While valuations broadly appear to be elevated, investors seem to be looking toward continued strength in the economy coupled with the potential for lower interest rates over the coming year. According to Bloomberg, the market is pricing in between two and three interest rate cuts for the balance of calendar year 2026. Investors also appear to be expecting a year that will be less focused on the prospect of trade wars and tariff announcements and more focused on economic fundamentals.
Previous report
Long-term U.S. bond yields were close to flat during the three months ended December 31, 2025. While inflation remains above the Federal Reserve’s 2% goal, economic data points to a continued moderation in the pace of inflation, despite a resilient global economy. Projections compiled by Bloomberg estimate that the Consumer Price Index will advance by 2.8% in 2025 and in 2026, after increasing by 3.0% in 2024. Investors may continue to focus on inflation data and its implications for future interest rate cuts. On the labor front, the unemployment rate is 4.6%, as of November 2025, which is up from 4.2% a year earlier.
Previous report
For the twelve months ended December 31, 2025, all but one of the Hennessy Funds generated positive total returns. In addition, for the three‑year period ending December 31, 2025, all 17 Hennessy Funds posted positive annualized total returns. Over the longer term, the 16 Hennessy Funds with over five and ten years of operating history all posted positive returns in the five- and ten-year periods ended December 31, 2025.
Previous report
Total revenue comprises investment advisory fees and shareholder service fees. Comparing the three months ended December 31, 2024, to the three months ended December 31, 2025, total revenue decreased by 14.3%, from $9.7 million to $8.3 million, investment advisory fees decreased by 14.3%, from $9.1 million to $7.8 million, and shareholder service fees decreased by 13.6%, from $0.65 million to $0.56 million.
Previous report
None of the Hennessy Funds had net inflows during the three months ended December 31, 2025.
Reworded paragraphs (23)
Previous wording
The Japanese equity market was up 2.53% in U.S. dollar terms over the three months ended December 31, 2025, as measured by the Tokyo Stock Price Index. During the period, Japanese equities traded higher as strong foreign capital inflows, structural corporate reforms, positive policy expectations, and earnings resilience propelled an increase in shares value.
Current wording
The Japanese equity market was up 4.69% in U.S. dollar terms over the six months ended March 31, 2026, as measured by the Tokyo Stock Price Index. During the period, Japanese equities traded higher as aggressive corporate governance reforms, a weak yen boosting exporter profits, a return to moderate inflation, and renewed foreign investment drove an increase in share values.
Previous wording
We provide service to nearly 175,000 fund accounts nationwide, including accounts held by investors who employ financial advisors to assist them with investing as well as accounts held by retail investors who invest directly with us. We serve approximately 10,300 financial advisors who utilize the Hennessy Funds on behalf of their clients, including roughly 200 who purchased one of our Funds for the first time during the most recent quarter. Approximately 18% of such advisors own two or more Hennessy Funds, and approximately 700 advisors hold a position of over $500,000. While numbers have declined in recent years, we continue to focus significant efforts on building and maintaining brand loyalty among our top tier of advisors.
Current wording
We provide service to nearly 170,000 fund accounts nationwide, including accounts held by investors who employ financial advisors to assist them with investing as well as accounts held by retail investors who invest directly with us. We serve approximately 10,200 financial advisors who utilize the Hennessy Funds on behalf of their clients, including roughly 200 who purchased one of our Funds for the first time during the most recent quarter. Approximately 17% of such advisors own two or more Hennessy Funds, and approximately 700 advisors hold a position of over $500,000. While numbers have declined in recent years, we continue to focus significant efforts on building and maintaining brand loyalty among our top tier of advisors.
Previous wording
Total assets under management as of December 31, 2025, was $4.1 billion, a decrease of $0.7 billion, or 14.3%, compared to December 31, 2024. The decrease in total assets was attributable to net outflows from the Hennessy Funds, partly offset by market appreciation.
Current wording
Total assets under management as of March 31, 2026, was $3.9 billion, a decrease of $0.3 billion, or 7.8%, compared to March 31, 2025. The decrease in total assets was attributable to net outflows from the Hennessy Funds, partly offset by market appreciation.
Previous wording
The principal asset on our balance sheet, the management contract asset, represents the capitalized costs incurred in connection with the purchase of the assets related to the management of investment funds. As of December 31, 2025, this asset had a net balance of $82.3 million, compared to $82.6 million as of September 30, 2025. This decrease is related to a current period expense of previously capitalized costs as a result of the recent termination of the definitive agreement signed with STF Management, LP in March 2025.
Current wording
The principal asset on our balance sheet, the management contract asset, represents the capitalized costs incurred in connection with the purchase of the assets related to the management of investment funds. As of March 31, 2026, this asset had a net balance of $82.3 million, compared to $82.6 million as of September 30, 2025. This decrease is related to a current period expense of previously capitalized costs as a result of the termination on January 1, 2026 of the definitive agreement signed with STF Management, LP in March 2025.
Previous wording
The 2026 Notes are the principal liability on our balance sheet at $39.9 million, net of issuance costs. At December 31, 2025, the 2026 Notes were reclassified from long-term to current as the maturity date is within twelve months.
Current wording
The 2026 Notes are the principal liability on our balance sheet at $40.0 million, net of issuance costs. At December 31, 2025, the 2026 Notes were reclassified from long-term to current as the maturity date is within twelve months.
Previous wording
Our total assets under management as of December 31, 2025, was $4.1 billion, a decrease of $0.7 billion, or 14.3%, compared to December 31, 2024. The primary sources of our revenue, liquidity, and cash flow are our investment advisory fees and shareholder service fees, which are based on and generated by our average assets under management. Our average assets under management for the three months ended December 31, 2025, was $4.2 billion, a decrease of $0.7 billion, or 13.5%, compared to the three months ended December 31, 2024. As of December 31, 2025, we had cash and cash equivalents of $72.0 million.
Current wording
Our total assets under management as of March 31, 2026, was $3.9 billion, a decrease of $0.3 billion, or 7.8%, compared to March 31, 2025. The primary sources of our revenue, liquidity, and cash flow are our investment advisory fees and shareholder service fees, which are based on and generated by our average assets under management. Our average assets under management for the six months ended March 31, 2026, was $4.2 billion, a decrease of $0.6 billion, or 12.9%, compared to the six months ended March 31, 2025. As of March 31, 2026, we had cash and cash equivalents of $73.0 million.
Previous wording
The decrease in cash provided by operating activities of $1.6 million was primarily due to decreased accrued liabilities and accounts payable and decreased net income in the current period.
Current wording
The decrease in cash provided by operating activities of $3.0 million was primarily due to decreased net income and decreased accrued liabilities and accounts payable in the current period.
Previous wording
The decrease in cash used in investing activities of $0.07 million was due to decreased purchases of property and equipment in the current period.
Current wording
The decrease in cash used in investing activities of $0.1 million was due to decreased purchases of property and equipment in the current period.
Previous wording
The increase in cash used in financing activities of $0.02 million was due to the increased dollar amount of dividends paid as a result of having more shares outstanding in the current period than in the prior comparable period.
Current wording
The increase in cash used in financing activities of $0.1 million was due to the increased dollar amount of dividends paid as a result of an increased dividend rate and having more shares outstanding in the current period than in the prior comparable period.
Previous wording
The decrease in investment advisory fees was due mainly to decreased average daily net assets of the Hennessy Funds, and the decrease in shareholder service fees was due to a decrease in the average daily net assets held in Investor Class shares of the Hennessy Mutual Funds. Assets held in Investor Class shares of the Hennessy Mutual Funds are subject to a shareholder service fee, whereas assets held in Institutional Class shares of the Hennessy Mutual Funds are not subject to a shareholder service fee.
Current wording
In each period, the decrease in investment advisory fees was due mainly to decreased average daily net assets of the Hennessy Funds, and the decrease in shareholder service fees was due to a decrease in the average daily net assets held in Investor Class shares of the Hennessy Mutual Funds. Assets held in Investor Class shares of the Hennessy Mutual Funds are subject to a shareholder service fee, whereas assets held in Institutional Class shares of the Hennessy Mutual Funds are not subject to a shareholder service fee.
Previous wording
We collect investment advisory fees from each of the Hennessy Funds at differing annual rates. These annual rates range between 0.40% and 1.25% of average daily net assets. Average daily net assets of the Hennessy Funds for the three months ended December 31, 2025, was $4.2 billion, which represents a decrease of $0.7 billion, or 13.5%, compared to the three months ended December 31, 2024. The Hennessy Fund with the largest average daily net assets for the three months ended December 31, 2025, was the Hennessy Cornerstone Mid Cap 30 Fund, with $1.3 billion. We collect an investment advisory fee from the Hennessy Cornerstone Mid Cap 30 Fund at an annual rate of 0.74% of average daily net assets. The Hennessy Fund with the second largest average daily assets for the three months ended December 31, 2025, was the Hennessy Focus Fund, with $0.6 billion. We collect an investment advisory fee from the Hennessy Focus Fund at an annual rate of 0.90% of average daily net assets. However, we pay a sub‑advisory fee at an annual rate of 0.29% to the fund’s sub-advisor, which reduces the net operating profit contribution of the fund to our financial operations.
Current wording
We collect investment advisory fees from each of the Hennessy Funds at differing annual rates. These annual rates range between 0.40% and 1.25% of average daily net assets. Average daily net assets of the Hennessy Funds for the three months ended March 31, 2026, was $4.2 billion, which represents a decrease of $0.6 billion, or 12.2%, compared to the three months ended March 31, 2025, and average daily net assets of the Hennessy Funds for the six months ended March 31, 2026, was $4.2 billion, which represents a decrease of $0.6 billion, or 12.9%, compared to the six months ended March 31, 2025. The Hennessy Fund with the largest average daily net assets for the three and six months ended March 31, 2026, was the Hennessy Cornerstone Mid Cap 30 Fund, with $1.2 billion for both periods. We collect an investment advisory fee from the Hennessy Cornerstone Mid Cap 30 Fund at an annual rate of 0.74% of average daily net assets. The Hennessy Fund with the second largest average daily assets for the three and six months ended March 31, 2026, was the Hennessy Focus Fund, with $0.5 billion for both periods. We collect an investment advisory fee from the Hennessy Focus Fund at an annual rate of 0.90% of average daily net assets. However, we pay a sub‑advisory fee at an annual rate of 0.29% to the fund’s sub-advisor, which reduces the net operating profit contribution of the fund to our financial operations.
Previous wording
Total assets under management as of December 31, 2025, was $4.1 billion, a decrease of $0.7 billion, or 14.3%, compared to December 31, 2024. The decrease in total assets was attributable to net outflows from the Hennessy Funds, partly offset by market appreciation.
Current wording
Total assets under management as of March 31, 2026, was $3.9 billion, a decrease of $0.3 billion, or 7.8%, compared to March 31, 2025. The decrease in total assets was attributable to net outflows from the Hennessy Funds, partly offset by market appreciation.
Previous wording
Redemptions as a percentage of assets under management increased from an average of 2.6% per month during the three months ended December 31, 2024, to an average of 3.1% per month during the three months ended December 31, 2025.
Current wording
Redemptions as a percentage of assets under management decreased from an average of 5.5% per month during the three months ended March 31, 2025, to an average of 2.6% per month during the three months ended March 31, 2026. Redemptions as a percentage of assets under management decreased from an average of 4.0% per month during the six months ended March 31, 2025 to an average of 2.8% per month during the six months ended March 31, 2026.
Previous wording
Comparing the three months ended December 31, 2024, to the three months ended December 31, 2025, total operating expenses decreased by 2.8% from $5.9 million to $5.7 million. As a percentage of total revenue, total operating expenses increased 5.1 percentage points to 68.7%. The dollar value decrease in operating expenses was due to decreases in the compensation and benefits, fund distribution and other, and sub-advisory fees categories offset by increases in general and administrative and depreciation expense categories.
Current wording
Comparing the three months ended March 31, 2025, to the three months ended March 31, 2026, total operating expenses decreased by 5.2% from $5.8 million to $5.5 million. As a percentage of total revenue, total operating expenses increased 5.1 percentage points to 67.9%. The dollar value decrease in operating expenses was due to decreases in the compensation and benefits, general and administrative, fund distribution and other, and sub-advisory fees categories, partly offset by an increase in depreciation expense.
Previous wording
Compensation and Benefits Expense: Comparing the three months ended December 31, 2024, to the three months ended December 31, 2025, compensation and benefits expense decreased by 10.5%, from $2.8 million to $2.5 million. As a percentage of total revenue, compensation and benefits expense increased 2.2 percentage points to 29.7%. The dollar value decrease in compensation and benefit expense was due to a decrease in incentive-based compensation in the current period.
Current wording
Compensation and Benefits Expense: Comparing the three months ended March 31, 2025, to the three months ended March 31, 2026, compensation and benefits expense decreased by 4.2%, from $2.7 million to $2.6 million. As a percentage of total revenue, compensation and benefits expense increased 2.7 percentage points to 31.5%.
Previous wording
General and Administrative Expense: Comparing the three months ended December 31, 2024, to the three months ended December 31, 2025, general and administrative expense increased by 15.8%, from $1.7 million to $1.9 million. As a percentage of total revenue, general and administrative expense increased 1.9 percentage points to 23.0%. The increase in general and administrative expense was primarily due to the recent termination of the definitive agreement signed with STF Management, LP in March 2025 and the related expense of previously capitalized costs in the current period.
Current wording
Comparing the six months ended March 31, 2025, to the six months ended March 31, 2026, general and administrative expense increased by 2.9%, from $3.5 million to $3.6 million. As a percentage of total revenue, general and administrative expense increased 3.4 percentage points to 21.6%. The increase in general and administrative expense was primarily due to the termination on January 1, 2026, of the definitive agreement signed with STF Management, LP in March 2025 and the related expense of previously capitalized costs in the current period.
Previous wording
Comparing the three months ended December 31, 2024, to the three months ended December 31, 2025, fund distribution and other expense decreased by 18.1%, from $0.3 million to $0.2 million. As a percentage of total revenue, fund distribution and other expense remained the same at 2.7%. The dollar value decrease in fund distribution and other expense was primarily due to decreased average daily net assets across the Hennessy Funds in the current period.
Current wording
Comparing the three months ended March 31, 2025, to the three months ended March 31, 2026, fund distribution and other expense decreased by 7.2%, from $0.3 million to $0.2 million. As a percentage of total revenue, fund distribution and other expense increased 0.2 percentage points to 2.9%.
Previous wording
Sub-Advisory Fees Expense: Comparing the three months ended December 31, 2024, to the three months ended December 31, 2025, sub-advisory fees expense decreased by 7.9%, from $1.1 million to $1.0 million. As a percentage of total revenue, sub-advisory fees expense increased 0.8 percentage points to 12.5%. The dollar value decrease in sub-advisory fees expense was due to decreased average daily net assets of the sub‑advised Hennessy Funds in the current period.
Current wording
Sub-Advisory Fees Expense: Comparing the three months ended March 31, 2025, to the three months ended March 31, 2026, sub-advisory fees expense decreased by 2.7%, from $1.03 million to $1.00 million. As a percentage of total revenue, sub-advisory fees expense increased 1.2 percentage points to 12.3%.
Previous wording
Depreciation Expense: Comparing the three months ended December 31, 2024, to the three months ended December 31, 2025, depreciation expense increased by 8.2% from $0.06 million to $0.07 million. As a percentage of total revenue, depreciation expense increased 0.2 percentage points to 0.8%. The increase in depreciation expense resulted from more fixed asset purchases in the current period.
Current wording
Depreciation Expense: Comparing the three months ended March 31, 2025, to the three months ended March 31, 2026, depreciation expense increased by 24.6% from $0.07 million to $0.09 million. As a percentage of total revenue, depreciation expense increased 0.4 percentage points to 1.1%.
Previous wording
Interest income consists of interest earned on cash and cash equivalents. Comparing the three months ended December 31, 2024, to the three months ended December 31, 2025, interest income decreased from $0.71 million to $0.65 million. The decrease in interest income resulted from decreased interest rates in the current period.
Current wording
Interest income consists of interest earned on cash and cash equivalents. Comparing the three months ended March 31, 2025, to the three months ended March 31, 2026, interest income decreased from $0.7 million to $0.6 million. Comparing the six months ended March 31, 2025, to the six months ended March 31, 2026, interest income decreased from $1.4 million to $1.3 million. In each period, the decrease in interest income resulted from decreased interest rates in the current period.
Previous wording
Comparing the three months ended December 31, 2024, to the three months ended December 31, 2025, interest expense increased from $0.57 million to $0.58 million. The increase in interest expense was due to the manner in which interest expense is calculated under U.S. GAAP. The issuance costs related to the 2026 Notes that have been capitalized are amortized over time and therefore increase the carrying amount of the 2026 Notes. As the carrying amount of the 2026 Notes increases, the interest expense on the 2026 Notes for financial statement purposes also increases.
Current wording
Comparing the three months ended March 31, 2025, to the three months ended March 31, 2026, interest expense increased from $0.57 million to $0.58 million. Comparing the six months ended March 31, 2025, to the six months ended March 31, 2026, interest expense increased from $1.14 million to $1.15 million. In each period, the increase in interest expense was due to the manner in which interest expense is calculated under U.S. GAAP. The issuance costs related to the 2026 Notes that have been capitalized are amortized over time and therefore increase the carrying amount of the 2026 Notes. As the carrying amount of the 2026 Notes increases, the interest expense on the 2026 Notes for financial statement purposes also increases.
Previous wording
Comparing the three months ended December 31, 2024, to the three months ended December 31, 2025, income tax expense decreased by 33.9%, from $1.1 million to $0.7 million. The decrease in income tax expense was due to decreased net operating income, as well as a lower effective income tax rate in the current period due to changes in exposure to state income tax liability based on the location of investors in the Hennessy Funds.
Current wording
Comparing the three months ended March 31, 2025, to the three months ended March 31, 2026, income tax expense decreased by 24.4%, from $1.0 million to $0.7 million. Comparing the six months ended March 31, 2025, to the six months ended March 31, 2026, income tax expense decreased by 29.5%, from $2.1 million to $1.5 million. In each period, the decrease in income tax expense was due to decreased net operating income.
Previous wording
Comparing the three months ended December 31, 2024, to the three months ended December 31, 2025, net income decreased by 31.9%, from $2.8 million to $1.9 million. The decrease in net income was primarily due to decreased revenue in the current period.
Current wording
Comparing the three months ended March 31, 2025, to the three months ended March 31, 2026, net income decreased by 26.1%, from $2.6 million to $1.9 million. Comparing the six months ended March 31, 2025, to the six months ended March 31, 2026, net income decreased by 29.1%, from $5.4 million to $3.8 million. In each period, the decrease in net income was primarily due to decreased revenue in the current period.
Rearranged current paragraphs (4)
Current report — wording carried from elsewhere
Comparing the six months ended March 31, 2025, to the six months ended March 31, 2026, total operating expenses decreased by 4.0% from $11.7 million to $11.2 million. As a percentage of total revenue, total operating expenses increased 6.6 percentage points to 68.3%. The dollar value decrease in operating expenses was due to decreases in the compensation and benefits, fund distribution and other, and sub-advisory fees categories, partly offset by increases in general and administrative and depreciation expense categories.
Current report — wording carried from elsewhere
In each period, the dollar value decrease in compensation and benefit expense was due to a decrease in incentive-based compensation in the current period.
Current report — wording carried from elsewhere
In each period, the dollar value decrease in sub-advisory fees expense was due to decreased average daily net assets of the sub‑advised Hennessy Funds in the current period.
Current report — wording carried from elsewhere
In each period, the increase in depreciation expense resulted from more fixed asset purchases in the current period.