Hennessy Advisors Inc (HNNA) CEO Neil Hennessy says his firm is in no hurry to move into the fixed income arena. Hennessy says he expects interest rates to go up, and eventually encourage investors to move into equity strategies.
“When I look at the mutual fund industry, again, I look at it simply from the standpoint that there is $3.4 trillion in fixed income mutual funds and $2.1 trillion in money market funds. So when you add those two together you’ve got approximately $5.5 trillion sitting in investment vehicles that are earning next to nothing,” Hennessy says. “At some point in time, investors are going to have to move over to the equity market, and when they do, that’s just going to spur the market to go even higher, which is going to be good for equity-based mutual fund companies like Hennessy.”
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Hennessy adds that his firm is open to making acquisitions, but not necessarily seeking them out. He says he’ll only consider acquisitions that are accretive and beneficial to shareholders.
“We will continue to focus on, and we’re building out, our internal distribution through the registered investment advisor market, and we will continue to manage the Funds for the benefit of shareholders,” Hennessy says.
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