Hennessy Advisors, Inc. (HNNA): Marketing Mix Analysis [Dec-2025 Updated]

You're looking for a sharp, late-2025 snapshot of Hennessy Advisors, Inc.'s (HNNA) market position, so let's break down their four P's with the latest fiscal data. After two decades analyzing asset managers, I can tell you their story this year is about disciplined growth: they grew total revenue by almost 19.9% to $35.5 million on $4.5 billion in average daily net assets for FY2025. We'll dissect how their 17-fund product suite, fee structure ranging from 0.40% to 1.25%, and advisor-centric distribution strategy are working together right now. Honestly, understanding these levers is key to seeing where they're headed next.

Hennessy Advisors, Inc. (HNNA) - Marketing Mix: Product

Hennessy Advisors, Inc. manages 16 mutual funds and one ETF under the Hennessy Funds brand as of the end of fiscal year 2025.

The core strategy across the Hennessy Funds emphasizes a buy-and-hold philosophy that actively rejects the idea of market timing. A portion of the offerings, including some in the Domestic Equity category, utilize a quantitative investment strategy.

The product mix encompasses several distinct categories, which are detailed below. As of fiscal year end September 30, 2025, Total Assets Under Management (AUM) stood at $4,244,768,182, while Average Assets Under Management, upon which revenue is earned, was $4,482,213,865.

The firm expanded its ETF lineup in 2025 through the definitive agreement to acquire assets of two STF Tactical Growth ETFs, which was expected to close in the third quarter of 2025. This acquisition involved the STF Tactical Growth ETF (TUG) and the STF Tactical Growth & Income ETF (TUGN), representing combined assets of approximately $220 million. Upon completion, these funds are to be renamed the Hennessy Tactical Growth ETF and Hennessy Tactical Growth and Income ETF.

Hennessy Advisors, Inc. also provides separate account strategies tailored for high-net-worth and institutional clients, complementing the mutual fund and ETF offerings.

The product structure is organized across the following primary categories:

• Domestic Equity
• Multi-Asset
• Sector/Specialty
• Exchange Traded Funds (ETFs)

The composition of the mutual fund offerings within the main categories as of late 2025 includes specific funds:

Financial results for the fiscal year ended September 30, 2025, show Total Revenue of $35,538,420 and Net Income of $9,960,235. Diluted Earnings Per Share for the same period was $1.27.

Hennessy Advisors, Inc. (HNNA) - Marketing Mix: Place

You're looking at how Hennessy Advisors, Inc. gets its products-the Hennessy Funds-into the hands of investors as of late 2025. Distribution here isn't about stocking shelves; it's about access through the financial ecosystem.

Funds are distributed through third-party financial institutions and brokerage platforms. This is the primary pipeline for most of the firm's assets. The advisory fees are calculated based on the average daily net assets of the Hennessy Funds, which stood at an average of $4.5 billion for fiscal year 2025. The firm manages 17 total products, comprising 16 mutual funds and one ETF.

Direct outreach and sales efforts target financial advisors and retail investors. This is where the firm actively engages the distribution network. The revenue stream reflects this dual focus:

• Investment Advisory Fees accounted for $33.174 million in fiscal year 2025.
• Shareholder Service Fees, which apply to Investor Class shares, totaled $2.364 million for fiscal year 2025.
• The average monthly redemption rate spiked to 3.6% in fiscal year 2025, up from 2.3% the prior year, signaling increased pressure on retaining assets.

Investor Class shares of mutual funds can be purchased directly by clients. This contrasts with the Institutional Class shares, which are not subject to the shareholder service fee component of the distribution cost structure. The firm's total assets under management (AUM) at the end of fiscal year 2025 settled at $4.2 billion, down 8.6% from the prior year-end.

Strategic focus on retaining advisors with over $500,000 in fund positions is a key element of their distribution stability plan. While the exact metric for advisors holding over $500,000 isn't public, the firm experienced $800 million in net outflows during fiscal year 2025. This outflow level was four times the amount seen in fiscal year 2024.

Corporate presence includes offices in Novato, CA, Boston, MA, and Chapel Hill, NC. These locations anchor the firm's operational and relationship management footprint across key financial centers. Here's a quick look at some key financial metrics that underpin the distribution strategy:

The firm's investment advisory fee rates range between 0.40% and 1.25% of average daily net assets. Finance: draft 13-week cash view by Friday.

Hennessy Advisors, Inc. (HNNA) - Marketing Mix: Promotion

You're looking at how Hennessy Advisors, Inc. gets its message out there. The promotion effort is built around demonstrating tangible results and operational discipline, which is key when you're selling long-term investment products.

The comprehensive strategy uses a mix of channels. You see this in their active use of public relations, targeted digital marketing efforts, and crucial direct outreach to financial advisors and retail investors. This multi-pronged approach helps ensure the message about the Hennessy Funds reaches the right decision-makers.

A core part of the promotional narrative emphasizes the strong, long-term performance across all 17 Hennessy Funds. This focus on historical results is designed to build confidence, which is definitely important for an asset manager emphasizing a buy-and-hold approach.

Here's a look at the performance data they promote, as of the fiscal year ended September 30, 2025:

Management consistently promotes a message of stability and disciplined operations to the market. They are explicit about their commitment to a buy-and-hold philosophy that rejects the idea of market timing. This messaging is supported by solid financial results for the fiscal year 2025, including a 40% increase in net income to $10.0 million and fully diluted earnings per share (EPS) of $1.27, a 38% increase.

The firm also uses product evolution as a promotional point to show responsiveness. They transitioned the Hennessy Stance ESG ETF to a fully transparent structure in May 2025, renaming it the Hennessy Sustainable ETF (Ticker: STNC). This move, which now provides daily portfolio disclosure, was promoted as reflecting an ongoing dedication to meeting evolving shareholder needs for transparency.

Their promotional activities also highlight growth initiatives, such as signing an agreement in 2025 to acquire assets related to the management of the STF Tactical Growth & Income ETF and the STF Tactical Growth ETF, which will be reorganized into new series under the Hennessy Funds.

Key elements of the promotional focus include:

• Public relations activities.
• Digital marketing campaigns.
• Direct outreach to financial advisors.
• Highlighting the buy-and-hold philosophy.
• Showcasing the 10-year positive return track record.

The firm ended fiscal year 2025 with total assets under management of $4.2 billion and $72.4 million in cash and cash equivalents, figures that underpin the stability narrative they push through promotion.

Hennessy Advisors, Inc. (HNNA) - Marketing Mix: Price

You're looking at how Hennessy Advisors, Inc. prices its advisory services, which is fundamentally tied to the assets under management (AUM) they oversee. The core pricing mechanism involves collecting investment advisory fees based on the average daily net assets across the Hennessy Funds.

For the fiscal year ended September 30, 2025, the pricing structure resulted in significant top-line growth. Total Revenue for fiscal year 2025 was reported at $35.5 million, marking a 19.9% increase over the prior year. This revenue is directly driven by the average asset base, which for FY2025 stood at $4.5 billion, representing a 22% increase in average assets under management compared to fiscal year 2024. This growth in the asset base, despite a slight decline in total AUM at year-end to $4.2 billion, shows the effectiveness of the current fee realization model.

Here's a quick look at the key financial metrics that reflect the scale at which these prices are applied:

The actual fee charged to clients varies depending on the specific Hennessy Fund structure you invest in. The investment advisory fees Hennessy Advisors, Inc. collects from each fund range annually from 0.40% to 1.25% of average daily net assets. This range reflects the different strategies, asset sizes, and service levels across the fund family.

For example, looking at the largest fund provides a concrete data point on their pricing strategy in action. The Hennessy Cornerstone Mid Cap 30 Fund has a stated investment advisory fee of 0.74% of average daily net assets. Still, you should note that the total expense ratio for the Investor Class (HFMDX) of that fund is 1.33%, while the Institutional Class (HIMDX) is 0.95%. This difference highlights the cost component you mentioned.

Regarding the cost structure and accessibility, you can see how the share class impacts the client expense:

• Investment advisory fees are the primary revenue driver for Hennessy Advisors, Inc.
• Shareholder service fees apply only to assets held in Investor Class shares.
• Direct purchases of Institutional Class shares help avoid the shareholder service fee expense.
• The Cornerstone Mid Cap 30 Investor Class gross expense ratio is 1.33%.
• The Cornerstone Mid Cap 30 Institutional Class gross expense ratio is 0.95%.

This structure is designed to make the Institutional share class more competitively attractive for larger investors who can access it, effectively lowering the all-in cost by eliminating the shareholder service component, which is a key element of their accessibility strategy.