Hennessy Japan Fund Institutional Class NCSRS Certified semi-annual shareholder report (management investment company)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number (811-07168)

Hennessy Funds Trust

(Exact name of registrant as specified in charter)

7250 Redwood Blvd., Suite 200

Novato, CA 94945

(Address of principal executive offices) (Zip code)

Neil J. Hennessy

Hennessy Advisors, Inc.

7250 Redwood Blvd., Suite 200

Novato, CA 94945

(Name and address of agent for service)

800-966-4354

Registrant's telephone number, including area code

Date of fiscal year end: October 31, 2010

Date of reporting period: April 30, 2010

Item 1. Reports to Stockholders.

HENNESSY FUNDS

SEMI-ANNUAL REPORT

APRIL 30, 2010

Hennessy Cornerstone Growth Fund

Hennessy Cornerstone Growth Fund, Series II

Hennessy Focus 30 Fund

Hennessy Cornerstone Large Growth Fund

Hennessy Cornerstone Value Fund

Hennessy Total Return Fund

Hennessy Balanced Fund

Contents

Letter to shareholders		1
Fund performance review		4
Summaries of investments
Hennessy Cornerstone Growth Fund		7
Hennessy Cornerstone Growth Fund, Series II		12
Hennessy Focus 30 Fund		17
Hennessy Cornerstone Large Growth Fund		21
Hennessy Cornerstone Value Fund		26
Hennessy Total Return Fund		31
Hennessy Balanced Fund		35
Financial statements
Statements of assets and liabilities		40
Statements of operations		42
Statements of changes in net assets		44
Financial highlights
Hennessy Cornerstone Growth Fund		54
Hennessy Cornerstone Growth Fund, Series II		58
Hennessy Focus 30 Fund		62
Hennessy Cornerstone Large Growth Fund		66
Hennessy Cornerstone Value Fund		70
Hennessy Total Return Fund		74
Hennessy Balanced Fund		76
Statement of cash flows – Hennessy Total Return Fund		78
Notes to the financial statements		79
Expense example		89
Proxy voting policy		91
Board approval of continuation
of investment advisory agreement		92

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LETTER TO SHAREHOLDERS

June, 2010

Dear Hennessy Funds Shareholder:

In the past six months, the investing landscape continued to be wrought with fear, panic and unending volatility. Every one of us, professional and individual investors alike, feel like we have been in a heavyweight fight; battered and bruised, but we are still standing. As I really focus on the fundamentals, and don’t get caught up in the headlines, I believe that we will see moderate, sustainable growth. But, just as the recovery felt like it was finally gathering steam, the market plunge last month has sent investors fleeing for cover once again. Watching the markets is beginning to feel like watching a “vertical tennis match” – lobs going up and lobs coming down, up and down.

We all know firsthand that investor confidence is still shaken. Despite very strong returns for the markets since the lows in March, 2009, people don’t believe the recovery is real and are still on the sidelines in money market funds, or perhaps even worse in my view, they are pouring their money into bonds and fixed income products. I can completely understand investors’ fears, but I was shocked to find out that many people I have spoken to believe the returns of the major indices last year were actually negative (the Dow Jones Industrial Average returned +23% for the 2009 calendar year; the S&P Index +26%). That shows me just how much emotion can cloud reality.

With long-term history as my guide, I continue to believe that we should see annualized returns in the equity markets in the 8-10% range over the long run. In my opinion, interest rates will increase to more historically normal levels, and that may cause trouble for bond investments. I also foresee companies may move toward increasing or initiating dividends. During the recent downturn, many companies took the opportunity to lay off excess employees, take write offs and close unprofitable business lines. These firms have emerged “lean and mean,” and any increase in sales will likely fall directly to their bottom lines. This lower growth environment provides a great opportunity for companies to increase dividends in order to try and drive their un derlying stock prices higher. Companies with strong retained earnings and cash positions should have no problem covering these dividends in the future. The S&P 500 companies alone have approximately $600 billion in cash on their balance sheets currently.

HENNESSY FUNDS 1-800-966-4354

I don’t mean to come off as cavalier or uncaring, but the market will do what the market will do. We can’t control it. What we can control are our emotions and reactions to the volatility and headlines. We can control our own individual investment goals and decisions, and we can maintain a disciplined approach to investing. I know it is hard to tune out all the noise about recession, double dips and sovereign debt, but if you can stick with buying and holding high quality investments, and you rebalance regularly, I truly believe that over the long run you should do just fine. Some pundits would say that the markets are fundamentally different today and that we are in for dramatically different types of market cycles in the future. Not to say we won’t continue to see big swings, but my 30+ years in the business has shown me that the more things change, the more they stay the same. We have been through hard times in our economy before, and we will survive these hard times as well. Over time, I hope we will all be able to view this period in its proper historical context.

Thank you for your continued support and investment in the Hennessy Funds. You can be confident that we will maintain our strict adherence to our time tested investment strategies. We appreciate your business and want you to know that in every decision we make, we put our shareholders first.

Best regards,

Neil J. Hennessy

Portfolio Manager & Chief Investment Officer

Past performance does not guarantee future results.

Mutual fund investing involves risk. Principal loss is possible.

The S&P 500 Index and Dow Jones Industrial Average are unmanaged indices commonly used to measure the performance of U.S. stocks. One cannot invest directly in an index.

Opinions expressed are those of Neil Hennessy and are subject to change, are not guaranteed and should not be considered investment advice.

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LETTER TO SHAREHOLDERS

(This Page Intentionally Left Blank.)

HENNESSY FUNDS 1-800-966-4354

Fund Performance Review

For the six month period ended April 30, 2010, small and mid-cap stocks generally outperformed large caps, and we saw that play out in our Funds’ performance. Many of our portfolios were overweight in Consumer Discretionary stocks for the period, which benefitted their performance. During the stock selection process, our formulas have identified a theme that we term “getting more for less,” and many of these stocks, such as discount retailers, have performed well during the period.

We are pleased with the performance of the Cornerstone Funds during the period, with our five equity funds returning between 15% and 27%.

Hennessy Cornerstone Growth Fund

The Fund returned 20.32% for the six-month period ended April 30, 2010, underperforming its benchmark, the Russell 2000 Index, which returned 28.17%. Prior to the Fund’s rebalance in the winter, the best performing stock was FGX International Holdings (FGXI), as they issued a better than expected Q3 ’09 earnings report, while the worst performer was Hot Topic (HOTT), as the company issued a weak October sales report. Post rebalance, the Fund’s relative underperformance versus its benchmark was driven by security selection in each sector except Energy. The best performing stock was Brunswick Corp. (BC), while the worst performing stock was Telvent (TLVT), which issued a worse than expected earnings release for Q4 ’09.

Hennessy Cornerstone Growth Fund, Series II

The Fund returned 27.86% for the six-month period ended April 30, 2010, outperforming its benchmark, the Russell 2000 Growth Index, which returned 25.49%. Security selection in the Consumer Discretionary, Industrial, and Health Care sectors specifically drove the strong performance and more than offset weaker security selection in the Consumer Staples, Materials and Energy sectors. Sector allocation was neutral, as a positive contribution from an overweight position in Consumer Discretionary stocks was offset by overweight positions in the Consumer Staples, Materials, and Financials sectors. The best performing stock in the fund was Dollar Thrifty Automotive Group (DTG), which was up 138%, as it released better than expected earnings in February and fielded a takeover offer in late April. The worst performing stock in the fund was Fuqi In ternational (FUQI), which was down 49% upon issuing an accounting restatement. Discount retailer, 99 Cents Stores (NDN) gained 37% during the period.

Hennessy Focus 30 Fund

While the Fund returned 21.42% for the six-month period ended April 30, 2010, it underperformed its benchmark, the S&P 400 Mid-cap Index, which returned 25.78%. Security selection in the Materials, Energy, Industrial and IT sectors hampered the Fund’s relative performance and offset positive security selection in other sectors such as Financials and Consumer Staples, as well as the positive impact of sector allocation, including overweight positions in Materials and

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FUND PERFORMANCE REVIEW

Consumer Discretionary stocks and an underweight position in the Utilities sector. The best performing stock in the Fund over the six-month period was Tractor Supply Co. (TSCO), which was up 50%, as the company pre-released stellar guidance for Q1 ’10, while the worst performing was Tetra Tech (TTEK), which was down 5%, as the company reduced its outlook for Fiscal Year 2010. Discount retailers Dollar Tree (DLTR) and Ross Stores (ROST) returned 35% and 27% for the period, respectively.

Hennessy Cornerstone Large Growth Fund

The Fund returned 18.37% for the six-month period ended April 30, 2010, outperforming its benchmark, the Russell 1000 Index, which returned 16.77%. The outperformance was the result of sector allocation. Prior to the Fund’s rebalance, overweight positions in the Industrial and Consumer Discretionary sectors, as well as an underweight position in the Consumer Staples sector more than offset a negative contribution from an overweight position in Energy. The best performing stocks in the portfolio prior to rebalance were Cummins, Inc. (CMI), who reported strong Q4 ‘09 earnings, while the worst performer was Diamond Offshore Drilling (DO), who had an earnings miss in Q4 ‘09. Post rebalance, the top performing stocks were Fluor Corp. (FLR) and discount retailer, TJX Companies (TJX). Family Dollar Stores (FDO) also had strong performance while in the portfolio.

Hennessy Cornerstone Value Fund

The Fund returned 14.90% for the six-month period ended April 30, 2010, underperforming its benchmark, the Russell 1000 Value Index, which returned 17.77%. Prior to its rebalance in the winter, the Fund was outpacing its benchmark, due to positive sector allocation from overweight positions in the Materials and Consumer Discretionary sectors and underweight positions in the Financial and Energy sectors. Strong security selection in the Materials and IT sectors also helped performance. Post rebalance, the Fund’s relative underperformance was driven by sector allocation and security selection. Negative contributions from overweight positions in Consumer Staples and Telecom stocks and an underweight position in Financials more than offset the positive contribution from an overweight position in Industrials stocks. Weak security selecti on in the Energy and IT sectors more than offset strong security selection in the Telecom and Consumer Staples sectors. The top performer in the Fund post-rebalance was Limited Brands, Inc. (LTD), which benefited from stronger than expected Q4 earnings. Home Depot (HD) also had strong performance while in the portfolio.

Hennessy Total Return and Hennessy Balanced Funds

The Hennessy Total Return Fund returned 11.78% and the Hennessy Balanced Fund returned 6.15% for the six-month period ended April 30, 2010, compared to the Dow Jones Industrial Average, which returned 14.87%. The Funds’ relative underperformance to their benchmark is due primarily to low yields on the Total Return Fund’s 25% position and the Balanced Fund’s 50% position in short-term Treasury Bills. A number of companies in these portfolios have increased their dividends during the period, including Home Depot (HD), whose stock gained 41% for the six-month period, Johnson and Johnson (JNJ), which gained 9%,

HENNESSY FUNDS 1-800-966-4354

and Chevron (CVX), which gained 6%. Boeing Co. (BA) was the top performing stock in the portfolios, returning 52% for the period, while Exxon Mobil was the poorest performer, losing -5%.

Past performance does not guarantee future results.

Mutual fund investing involves risk. Principal loss is possible. Small and medium-capitalization companies tend to have limited liquidity and greater price volatility than large-capitalization companies. Investments in foreign securities involve greater volatility and political, economic and currency risk and differences in accounting methods. Growth stocks typically are more volatile than value stocks; however, value stocks have a lower expected growth rate in earnings and sales. The Hennessy Total Return and the Hennessy Balanced Funds are non-diversified, meaning they may concentrate assets in fewer individual holdings than a diversified fund, making them more exposed to individual stock volatility than a diversified fund.

References to specific securities should not be considered a recommendation to buy or sell any security. Fund holdings are subject to change. Please refer to the Schedule of Investments within this semi-annual report for additional portfolio information, including percentages of holdings.

The Dow Jones Industrial Average is an unmanaged index commonly used to measure the performance of U.S. stocks. The Russell 2000 and Russell 2000 Growth Indices are unmanaged indices commonly used to measure the performance of small cap stocks, while the Russell 1000 and Russell 1000 Value indices measure the performance of large cap stocks. The S&P 400 Mid-cap Index is an unmanaged index commonly used to measure the performance of mid-cap stocks. One cannot invest directly in an index.

Current and future holdings are subject to risk.

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SUMMARY OF INVESTMENTS — HENNESSY CORNERSTONE GROWTH FUND

Summaries of Investments

The following summaries of investment portfolios are designed to help investors better understand each fund’s principal holdings. Each summary is as of April 30, 2010 (Unaudited).

HENNESSY CORNERSTONE GROWTH FUND

(% of Net Assets)

	TOP TEN EQUITY HOLDINGS	% of net assets
	Sanmina-SCI Corp.	3.58%
	Brunswick Corp.	3.29%
	KapStone Paper & Packaging Corp.	2.76%
	American Axle & Manufacturing Holdings, Inc.	2.62%
	Patriot Coal Corp.	2.59%
	Ford Motor Co.	2.44%
	Kirkland’s, Inc.	2.38%
	H.H. Gregg, Inc.	2.30%
	La-Z-Boy, Inc.	2.30%
	Jo-Ann Stores, Inc.	2.26%

HENNESSY FUNDS 1-800-966-4354

COMMON STOCKS – 99.45%	Number				% of Net
	of Shares		Value		Assets
Consumer Discretionary – 31.16%
American Axle & Manufacturing
Holdings Inc. (a)		584,000	$	6,283,840		2.62	%
Big 5 Sporting Goods Corp.		242,400		4,108,680		1.71	%
Brunswick Corp.		377,700		7,893,930		3.29	%
CarMax, Inc. (a)		201,000		4,938,570		2.06	%
Cia Brasileira de Distribuicao
Grupo Pao de Acucar – ADR (b)		59,800		4,096,898		1.71	%
Ford Motor Co. (a)		449,900		5,857,698		2.44	%
H.H. Gregg, Inc. (a)		193,200		5,531,316		2.30	%
Jo-Ann Stores, Inc. (a)		123,200		5,435,584		2.26	%
Kirkland’s, Inc. (a)		257,200		5,727,844		2.38	%
Knology, Inc. (a)		393,900		5,171,907		2.15	%
La-Z-Boy, Inc. (a)		424,000		5,528,960		2.30	%
Lumber Liquidators Holdings, Inc. (a)		157,300		4,791,358		1.99	%
Ulta Salon Cosmetics & Fragrance, Inc. (a)		222,700		5,148,824		2.14	%
Virgin Media, Inc.		246,500		4,335,935		1.81	%
				74,851,344		31.16	%
Consumer Staples – 5.14%
Cott Corp. (b)		489,500		4,097,115		1.70	%
Nu Skin Enterprises, Inc.		146,300		4,397,778		1.83	%
Revlon, Inc. (a)		220,200		3,857,904		1.61	%
				12,352,797		5.14	%
Energy – 12.54%
Acergy SA – ADR (b)		264,400		5,052,684		2.11	%
Calumet Specialty Products		213,300		4,786,452		1.99	%
DCP Midstream Partners LP		161,500		5,402,175		2.25	%
Massey Energy Corp.		106,000		3,882,780		1.62	%
Patriot Coal Corp. (a)		316,200		6,225,978		2.59	%
Regency Energy Partners LP		209,800		4,760,362		1.98	%
				30,110,431		12.54	%
Financials – 9.54%
Advance America Cash Advance Centers, Inc.		673,300		3,851,276		1.60	%
AmeriCredit Corp. (a)		216,300		5,178,222		2.16	%
Cardtronics, Inc. (a)		342,000		4,767,480		1.98	%

The accompanying notes are an integral part of these financial statements.

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SUMMARY OF INVESTMENTS — HENNESSY CORNERSTONE GROWTH FUND

COMMON STOCKS	Number				% of Net
	of Shares		Value		Assets
Financials (Continued)
Encore Capital Group, Inc. (a)		225,900	$	5,197,959		2.17	%
XL Capital Ltd. (b)		220,200		3,919,560		1.63	%
				22,914,497		9.54	%
Health Care – 7.60%
CIGNA Corp.		121,500		3,895,290		1.62	%
Cooper Companies, Inc.		117,200		4,557,908		1.90	%
Providence Service Corp. (a)		276,700		4,595,987		1.91	%
SXC Health Solutions Corp. (a)(b)		74,800		5,213,560		2.17	%
				18,262,745		7.60	%
Industrials – 4.82%
Bucyrus International, Inc.		77,000		4,851,770		2.02	%
GenCorp, Inc. (a)		482,500		3,001,150		1.25	%
M&F Worldwide Corp. (a)		121,700		3,731,322		1.55	%
				11,584,242		4.82	%
Information Technology – 14.19%
Advanced Micro Devices, Inc. (a)		555,200		5,030,112		2.09	%
Global Cash Access Holdings, Inc. (a)		539,700		4,684,596		1.95	%
GSI Commerce, Inc. (a)		173,100		4,716,975		1.96	%
Sanmina-SCI Corp. (a)		482,500		8,602,975		3.58	%
Tech Data Corp. (a)		95,700		4,105,530		1.71	%
Telvent GIT SA (b)		120,300		3,476,670		1.45	%
Unisys Corp. (a)		124,100		3,477,282		1.45	%
				34,094,140		14.19	%
Materials – 11.51%
Braskem SA – ADR (b)		275,000		3,918,750		1.63	%
Huntsman Corp.		408,600		4,662,126		1.94	%
KapStone Paper & Packaging Corp.(a)		513,700		6,626,730		2.76	%
NewMarket Corp.		37,200		4,092,000		1.70	%
Omnova Solutions, Inc. (a)		602,300		4,607,595		1.92	%
Schweitzer-Mauduit International, Inc.		65,900		3,751,028		1.56	%
				27,658,229		11.51	%
Telecommunication Services – 2.95%
Tim Participacoes SA – ADR (b)		143,800		3,737,362		1.56	%

The accompanying notes are an integral part of these financial statements.

HENNESSY FUNDS 1-800-966-4354

COMMON STOCKS	Number					% of Net
	of Shares		Value			Assets
Telecommunication Services (Continued)
Vivo Participacoes SA – ADR (b)		126,400	$	3,345,808			1.39	%
				7,083,170			2.95	%

Total Common Stocks (Cost $203,644,626)				238,911,595			99.45	%

SHORT-TERM INVESTMENTS – 0.69%
Money Market Funds – 0.69%
Fidelity Government Portfolio, 0.0400% (c)		1,654,303		1,654,303			0.69	%

Total Money Market Funds (Cost $1,654,303)				1,654,303			0.69	%

Total Short-Term Investments
(Cost $1,654,303)				1,654,303			0.69	%

Total Investments – 100.14%
(Cost $205,298,929)				240,565,898			100.14	%

Liabilities in Excess of Other Assets – (0.14)%				(324,478	)		(0.14	)%
TOTAL NET ASSETS – 100.00%			$	240,241,420			100.00	%

Percentages are stated as a percent of net assets.

(a)Non Income Producing

(b)Foreign Issued Security

(c)The rate listed is the Fund’s 7-day yield as of April 30, 2010.

The accompanying notes are an integral part of these financial statements.

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SUMMARY OF INVESTMENTS — HENNESSY CORNERSTONE GROWTH FUND

Summary of Fair Value Exposure at April 30, 2010 (Unaudited)

The Fund has adopted authoritative fair valuation accounting standards which establish an authoritative definition of fair value and set out a hierarchy for measuring fair value. These standards require additional disclosures about the various inputs and valuation techniques used to develop the measurements of fair value and a discussion in changes in valuation techniques and related inputs during the period. These inputs are summarized in the three broad levels listed below.

The Fund has performed an analysis of all existing investments to determine the significance and character of all inputs to their fair value determination.

Level 1 –

Quoted unadjusted prices for identical instruments in active markets to which the Fund has access at the date of measurement.

Level 2 –

Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. Level 2 inputs are those in markets for which there are few transactions, the prices are not current, little public information exists or instances where prices vary substantially over time or among brokered market makers.

Level 3 –

Model derived valuations in which one or more significant inputs or significant value drivers are unobservable. Unobservable inputs are those inputs that reflect the Fund’s own assumptions that market participants would use to price the asset or liability based on the best available information.

The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used to value the Fund’s net assets as of April 30, 2010:

	Level 1		Level 2		Level 3		Total
Equity
Consumer Discretionary	$	74,851,344	$	—	$	—	$	74,851,344
Consumer Staples		12,352,797		—		—		12,352,797
Energy		30,110,431		—		—		30,110,431
Financials		22,914,497		—		—		22,914,497
Health Care		18,262,745		—		—		18,262,745
Industrials		11,584,242		—		—		11,584,242
Information Technology		34,094,140		—		—		34,094,140
Materials		27,658,229		—		—		27,658,229
Telecommunication Services		7,083,170		—		—		7,083,170
Total Equity	$	238,911,595	$	—	$	—	$	238,911,595
Short-Term Investments	$	1,654,303	$	—	$	—	$	1,654,303
Total Investments in Securities	$	240,565,898	$	—	$	—	$	240,565,898

The accompanying notes are an integral part of these financial statements.

HENNESSY FUNDS 1-800-966-4354

HENNESSY CORNERSTONE

GROWTH FUND, SERIES II

(% of Net Assets)

	TOP TEN EQUITY HOLDINGS	% of net assets
	Dollar Thrifty Automotive Group Co.	6.41%
	SXC Health Solutions Corp.	3.87%
	Kirkland’s, Inc.	3.40%
	Madden Steven Ltd.	3.08%
	Schweitzer-Mauduit International, Inc.	3.07%
	Jos. A. Bank Clothiers, Inc.	2.79%
	Encore Cap Group, Inc.	2.67%
	Evercore Partners, Inc.	2.60%
	H.H. Gregg, Inc.	2.54%
	Cott Corporation	2.33%

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SUMMARY OF INVESTMENTS — HENNESSY CORNERSTONE GROWTH FUND, SERIES II

COMMON STOCKS – 97.91%	Number				% of Net
	of Shares		Value		Assets
Consumer Discretionary – 33.49%
99 Cents Only Stores (a)		35,800	$	555,616		1.62	%
Aaron’s, Inc.		23,700		534,909		1.56	%
Carter’s, Inc. (a)		20,500		660,510		1.93	%
Fuqi International, Inc. (a)		27,800		292,178		0.85	%
H. H .Gregg, Inc. (a)		30,400		870,352		2.54	%
Isle Of Capri Casinos, Inc. (a)		39,200		426,888		1.25	%
Jos. A. Bank Clothiers, Inc. (a)		15,700		955,502		2.79	%
Kirkland’s, Inc. (a)		52,300		1,164,721		3.40	%
Lincoln Educational Services Corp. (a)		25,900		646,464		1.89	%
Madden Steven Ltd. (a)		18,200		1,054,872		3.08	%
National Presto Industries, Inc.		6,200		694,214		2.03	%
P. F. Changs China Bistro, Inc. (a)		15,400		672,056		1.96	%
Peet’s Coffee & Tea, Inc. (a)		18,600		736,932		2.15	%
Pep Boys Manny Moe & Jack		50,800		636,524		1.86	%
Spartan Motors, Inc.		44,900		277,033		0.81	%
Sturm Ruger & Co., Inc.		38,500		642,565		1.88	%
Texas Roadhouse, Inc. (a)		43,900		648,842		1.89	%
				11,470,178		33.49	%
Consumer Staples – 11.81%
Calavo Growers, Inc.		24,200		419,628		1.22	%
Central Garden & Pet Co. (a)		50,500		521,665		1.52	%
Coca Cola Bottling Co.		8,800		484,704		1.42	%
Cott Corp. (a)(b)		95,300		797,661		2.33	%
J & J Snack Foods Corp.		13,500		628,965		1.84	%
Lancaster Colony Corp.		10,900		599,173		1.75	%
United Natural Foods, Inc. (a)		19,300		592,317		1.73	%
				4,044,113		11.81	%
Energy – 5.44%
Nustar Energy LP		9,400		578,664		1.69	%
Sunoco Logistics Partners LP		9,000		615,690		1.80	%
World Fuel Services Corp.		23,500		668,105		1.95	%
				1,862,459		5.44	%

The accompanying notes are an integral part of these financial statements.

HENNESSY FUNDS 1-800-966-4354

COMMON STOCKS	Number				% of Net
	of Shares		Value		Assets
Financials – 8.69%
Encore Cap Group, Inc. (a)		39,800	$	915,798		2.67	%
Evercore Partners, Inc.		24,800		888,832		2.60	%
First Horizon National Corp. (a)		40,000		566,000		1.65	%
Stifel Financial Corp. (a)		10,600		607,698		1.77	%
				2,978,328		8.69	%
Health Care – 9.51%
Bio-reference Labs, Inc. (a)		30,800		720,720		2.10	%
Cantel Medical Corp. (a)		30,100		600,796		1.76	%
Rehabcare Group, Inc. (a)		21,400		610,328		1.78	%
SXC Health Solutions Corp. (a)(b)		19,000		1,324,300		3.87	%
				3,256,144		9.51	%
Industrials – 16.37%
Apac Customer Services, Inc. (a)		95,100		546,825		1.60	%
Baker Michael Corp. (a)		11,900		420,546		1.23	%
Cubic Corp.		13,700		511,147		1.49	%
Dollar Thrifty Automotive Group Co. (a)		49,900		2,195,101		6.41	%
Force Protection, Inc. (a)		62,100		332,235		0.97	%
Goodrich Corp.		9,500		704,710		2.06	%
Marten Transport Ltd (a)		22,700		495,995		1.45	%
Tetra Tech, Inc. (a)		16,400		399,340		1.16	%
				5,605,899		16.37	%
Information Technology – 4.22%
Black Box Corp.		13,300		414,827		1.21	%
Global Cash Access Holdings, Inc. (a)		67,900		589,372		1.72	%
NCI, Inc. (a)		15,500		440,355		1.29	%
				1,444,554		4.22	%
Materials – 6.77%
Bway Holding Co. (a)		30,100		595,378		1.74	%
Rock-Tenn Co.		13,000		670,800		1.96	%
Schweitzer-Mauduit International, Inc.		18,500		1,053,020		3.07	%
				2,319,198		6.77	%

The accompanying notes are an integral part of these financial statements.

WWW.HENNESSYFUNDS.COM

SUMMARY OF INVESTMENTS — HENNESSY CORNERSTONE GROWTH FUND, SERIES II

COMMON STOCKS	Number					% of Net
	of Shares		Value			Assets
Telecommunication Services – 1.61%
USA Mobility, Inc.		39,600	$	552,024			1.61	%

Total Common Stocks (Cost $23,578,994)				33,532,897			97.91	%

SHORT-TERM INVESTMENTS – 2.29%	Principal					% of Net
	Amount		Value			Assets
Demand Notes# – 2.29%
American Family Financial Services, Inc. 0.1001%	$	784,913		784,913			2.29	%

Total Demand Notes ($784,913)				784,913			2.29	%

Total Short-Term Investments
(Cost $784,913)				784,913			2.29	%

Total Investments – 100.20%
(Cost $24,363,907)				34,317,810			100.20	%

Liabilities in Excess of Other Assets – (0.20)%				(70,075	)		(0.20	)%
TOTAL NET ASSETS – 100.00%			$	34,247,735			100.00	%

Percentages are stated as a percent of net assets.

(a)	Non Income Producing

(b)	Foreign Issued Security

#	Variable rate demand notes are considered short-term obligations and are payable on demand. Interest rates change periodically on specified dates. The rates listed are as of April 30, 2010.

The accompanying notes are an integral part of these financial statements.

HENNESSY FUNDS 1-800-966-4354

Summary of Fair Value Exposure at April 30, 2010 (Unaudited)

The Fund has performed an analysis of all existing investments to determine the significance and character of all inputs to their fair value determination.

Level 1 –

Quoted unadjusted prices for identical instruments in active markets to which the Fund has access at the date of measurement.

Level 2 –

Level 3 –

The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used to value the Fund’s net assets as of April 30, 2010:

	Level 1		Level 2		Level 3		Total
Equity
Consumer Discretionary	$	11,470,178	$	—	$	—	$	11,470,178
Consumer Staples		4,044,113		—		—		4,044,113
Energy		1,862,459		—		—		1,862,459
Financials		2,978,328		—		—		2,978,328
Health Care		3,256,144		—		—		3,256,144
Industrials		5,605,899		—		—		5,605,899
Information Technology		1,444,554		—		—		1,444,554
Materials		2,319,198		—		—		2,319,198
Telecommunication Services		552,024		—		—		552,024
Total Equity	$	33,532,897	$	—	$	—	$	33,532,897
Short-Term Investments	$	—	$	784,913	$	—	$	784,913
Total Investments in Securities	$	33,532,897	$	784,913	$	—	$	34,317,810

The accompanying notes are an integral part of these financial statements.

WWW.HENNESSYFUNDS.COM

SUMMARY OF INVESTMENTS — HENNESSY FOCUS 30 FUND

HENNESSY FOCUS 30 FUND

(% of Net Assets)

	TOP TEN EQUITY HOLDINGS	% of net assets
	Mylan, Inc.	4.04%
	Virgin Media, Inc.	3.97%
	AmeriCredit Corp.	3.90%
	Tractor Supply Co.	3.80%
	Coca-Cola Enterprises, Inc.	3.64%
	Tupperware Brands Corp.	3.60%
	Del Monte Foods Co.	3.54%
	Goodrich Corp.	3.53%
	NewMarket Corp.	3.50%
	O’ Reilly Automotive, Inc.	3.47%

HENNESSY FUNDS 1-800-966-4354

COMMON STOCKS – 97.81%	Number				% of Net
	of Shares		Value		Assets
Consumer Discretionary – 33.87%
Aeropostale, Inc. (a)		144,100	$	4,184,664		2.79	%
Carter’s, Inc. (a)		159,200		5,129,424		3.42	%
Darden Restaurants, Inc.		116,300		5,204,425		3.46	%
Dollar Tree, Inc. (a)		81,400		4,942,608		3.29	%
Gymboree Corp. (a)		88,500		4,348,005		2.89	%
O’Reilly Automotive, Inc. (a)		106,600		5,211,674		3.47	%
Ross Stores, Inc.		85,200		4,771,200		3.18	%
Tractor Supply Co. (a)		84,900		5,702,733		3.80	%
Tupperware Brands Corp.		106,000		5,413,420		3.60	%
Virgin Media, Inc.		339,100		5,964,769		3.97	%
				50,872,922		33.87	%
Consumer Staples – 10.10%
Coca-Cola Enterprises, Inc.		196,900		5,460,037		3.64	%
Del Monte Foods Co.		356,000		5,318,640		3.54	%
Lancaster Colony Corp.		79,800		4,386,606		2.92	%
				15,165,283		10.10	%
Energy – 9.97%
Linn Energy LLC		188,700		5,113,770		3.41	%
Plains All American Pipeline L.P.		83,400		4,836,366		3.22	%
World Fuel Services Corp.		176,600		5,020,738		3.34	%
				14,970,874		9.97	%
Financials – 3.90%
AmeriCredit Corp. (a)		245,000		5,865,300		3.90	%

Health Care – 10.33%
Emergency Medical Services Corp. (a)		85,500		4,521,240		3.01	%
Mylan, Inc. (a)		275,400		6,067,062		4.04	%
Watson Pharmaceuticals, Inc. (a)		114,900		4,920,018		3.28	%
				15,508,320		10.33	%
Industrials – 8.45%
Goodrich Corp.		71,500		5,303,870		3.53	%
KBR, Inc.		183,500		4,051,680		2.70	%
Tetra Tech, Inc. (a)		137,200		3,340,820		2.22	%
				12,696,370		8.45	%

The accompanying notes are an integral part of these financial statements.

WWW.HENNESSYFUNDS.COM

SUMMARY OF INVESTMENTS — HENNESSY FOCUS 30 FUND

COMMON STOCKS	Number					% of Net
	of Shares		Value			Assets
Information Technology – 8.76%
Broadridge Financial Solutions Inc.		186,400	$	4,438,184			2.96	%
Computer Sciences Corp. (a)		82,400		4,316,936			2.87	%
Tech Data Corp. (a)		102,700		4,405,830			2.93	%
				13,160,950			8.76	%
Materials – 12.43%
Ball Corp.		82,700		4,400,467			2.93	%
NewMarket Corp.		47,800		5,258,000			3.50	%
Rock-Tenn Co.		81,100		4,184,760			2.79	%
Scotts Miracle Gro Co.		99,700		4,830,465			3.21	%
				18,673,692			12.43	%

Total Common Stocks (Cost $119,666,813)				146,913,711			97.81	%

WARRANTS – 0.00%
Lantronix Inc., Warrant Ω
Expiration: February, 2011,
Exercise Price: $0.850		158		0			0.00	%

Total Warrants (Cost $0)				0			0.00	%

SHORT-TERM INVESTMENTS – 2.29%
Money Market Funds – 2.29%
Fidelity Government Portfolio, 0.0400% (b)		3,441,975		3,441,975			2.29	%

Total Money Market Funds (Cost $3,441,975)				3,441,975			2.29	%

Total Short-Term Investments
(Cost $3,441,975)				3,441,975			2.29	%

Total Investments – 100.10%
(Cost $123,108,788)				150,355,686			100.10	%

Liabilities in Excess of Other Assets – (0.10)%				(153,739	)		(0.10	)%
TOTAL NET ASSETS – 100.00%			$	150,201,947			100.00	%

Percentages are stated as a percent of net assets.

(a)	Non Income Producing

(b)	The rate listed is the Fund’s 7-day yield as of April 30, 2010

Ω	Security is fair valued

The accompanying notes are an integral part of these financial statements.

HENNESSY FUNDS 1-800-966-4354

Summary of Fair Value Exposure at April 30, 2010 (Unaudited)

The Fund has performed an analysis of all existing investments to determine the significance and character of all inputs to their fair value determination.

Level 1 –

Quoted unadjusted prices for identical instruments in active markets to which the Fund has access at the date of measurement.

Level 2 –

Level 3 –

The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used to value the Fund’s net assets as of April 30, 2010:

	Level 1		Level 2		Level 3			Total
Equity
Consumer Discretionary	$	50,872,922	$	—	$	—		$	50,872,922
Consumer Staples		15,165,283		—		—			15,165,283
Energy		14,970,874		—		—			14,970,874
Financials		5,865,300		—		—			5,865,300
Health Care		15,508,320		—		—			15,508,320
Industrials		12,696,370		—		—			12,696,370
Information Technology		13,160,950		—		—			13,160,950
Materials		18,673,692		—		—			18,673,692
Total Equity	$	146,913,711	$	—	$	—		$	146,913,711
Warrants	$	—	$	—	$	—	(1)	$	—
Short-Term Investments	$	3,441,975	$	—	$	—		$	3,441,975
Total Investments in Securities	$	150,355,686	$	—	$	—		$	150,355,686

(1)	If the Lantronix, Inc. warrant would have had a value, it would have been a Level 3 fair value. The warrant has been fair valued at $0 during the entire reporting period.

The accompanying notes are an integral part of these financial statements.

WWW.HENNESSYFUNDS.COM

SUMMARY OF INVESTMENTS — HENNESSY CORNERSTONE LARGE GROWTH FUND

HENNESSY CORNERSTONE

LARGE GROWTH FUND

(% of Net Assets)

	TOP TEN EQUITY HOLDINGS	% of net assets
	Humana, Inc.	2.04%
	Kellogg Co.	2.04%
	Bristol-Myers Squibb Co.	2.04%
	Consol Energy, Inc.	2.01%
	H.J. Heinz Co.	2.01%
	Sysco Corp.	2.00%
	General Mills, Inc.	1.99%
	Campbell Soup Co.	1.99%
	AutoZone, Inc.	1.98%
	Clorox Co.	1.98%

HENNESSY FUNDS 1-800-966-4354

COMMON STOCKS – 97.31%	Number				% of
	of Shares		Value		Net Assets
Consumer Discretionary – 27.01%
Apollo Group, Inc. (a)		24,700	$	1,418,027		1.81	%
AutoZone, Inc. (a)		8,400		1,554,084		1.98	%
Best Buy Co, Inc.		32,900		1,500,240		1.91	%
DIRECTV (a)		42,400		1,536,152		1.96	%
Dish Network Corp. (a)		69,500		1,539,425		1.96	%
Dollar Tree, Inc. (a)		25,000		1,518,000		1.93	%
Family Dollar Stores, Inc.		38,900		1,538,884		1.96	%
The Gap, Inc.		60,800		1,503,584		1.91	%
Liberty Global, Inc. (a)		55,800		1,529,478		1.95	%
Mattel, Inc.		65,700		1,514,385		1.93	%
The McGraw-Hill Companies, Inc.		45,400		1,530,888		1.95	%
Ross Stores, Inc.		26,800		1,500,800		1.91	%
TJX Companies, Inc.		32,500		1,506,050		1.92	%
Yum Brands, Inc.		35,700		1,514,394		1.93	%
				21,204,391		27.01	%
Consumer Staples – 19.89%
Altria Group, Inc.		73,100		1,548,989		1.97	%
Campbell Soup Co.		43,500		1,559,910		1.99	%
Clorox Co.		24,000		1,552,800		1.98	%
General Mills, Inc. (a)		22,000		1,565,960		1.99	%
H.J. Heinz Co.		33,600		1,574,832		2.01	%
Kellogg Co.		29,200		1,604,248		2.04	%
Kimberly - Clark Corp.		25,200		1,543,752		1.97	%
Lorillard, Inc.		19,700		1,543,889		1.97	%
Philip Morris International, Inc.		31,600		1,550,928		1.97	%
Sysco Corp.		49,900		1,573,846		2.00	%
				15,619,154		19.89	%
Energy – 3.83%
Consol Energy, Inc.		35,300		1,577,204		2.01	%
Diamond Offshore Drilling		18,100		1,431,710		1.82	%
				3,008,914		3.83	%
Financials – 1.94%
Moody’s Corp.		61,500		1,520,280		1.94	%

The accompanying notes are an integral part of these financial statements.

WWW.HENNESSYFUNDS.COM

SUMMARY OF INVESTMENTS — HENNESSY CORNERSTONE LARGE GROWTH FUND

COMMON STOCKS	Number				% of
	of Shares		Value		Net Assets
Health Care – 19.62%
Baxter International, Inc.		32,200	$	1,520,484		1.94	%
Becton, Dickinson & Co.		20,100		1,535,037		1.95	%
Bristol-Myers Squibb Co.		63,200		1,598,328		2.04	%
Cardinal Health, Inc.		42,800		1,484,732		1.89	%
CIGNA Corp.		47,200		1,513,232		1.93	%
Eli Lilly & Co.		43,800		1,531,686		1.95	%
Forest Laboratories, Inc. (a)		56,500		1,540,190		1.96	%
Humana, Inc. (a)		35,100		1,604,772		2.04	%
Johnson & Johnson		23,800		1,530,340		1.95	%
Laboratory Corp. of America Holdings (a)		19,700		1,547,829		1.97	%
				15,406,630		19.62	%
Industrials – 11.62%
Flowserve Corp.		13,200		1,512,456		1.92	%
Fluor Corp.		29,300		1,548,212		1.97	%
Honeywell International, Inc.		32,600		1,547,522		1.97	%
Joy Global, Inc.		25,300		1,437,293		1.83	%
Lockheed Martin Corp.		18,100		1,536,509		1.96	%
Raytheon Co.		26,500		1,544,950		1.97	%
				9,126,942		11.62	%
Information Technology – 5.71%
International Business Machines Corp.		11,900		1,535,100		1.96	%
SAIC, Inc. (a)		84,900		1,478,109		1.88	%
Western Digital Corp. (a)		35,700		1,466,913		1.87	%
				4,480,122		5.71	%
Materials – 7.69%
Crown Holdings, Inc. (a)		56,800		1,476,800		1.88	%
FMC Corp.		24,000		1,527,360		1.95	%
Freeport-McMoRan Copper & Gold, Inc.		20,100		1,518,153		1.93	%
Lubrizol Corp.		16,800		1,517,712		1.93	%
				6,040,025		7.69	%

Total Common Stocks (Cost $70,232,308)				76,406,458		97.31	%

The accompanying notes are an integral part of these financial statements.

HENNESSY FUNDS 1-800-966-4354

SHORT-TERM INVESTMENTS – 1.93%	Number				% of
	of Shares		Value		Net Assets
Money Market Funds – 1.93%
Fidelity Government Portfolio, 0.06% (b)		1,516,422	$	1,516,423		1.93	%

Total Short-Term Investments
(Cost $1,516,423)				1,516,423		1.93	%

Total Investments – 99.24%
(Cost $71,748,731)				77,922,881		99.24	%

Other Assets in Excess of Liabilities – 0.76%				594,238		0.76	%
TOTAL NET ASSETS – 100.00%			$	78,517,119		100.00	%

Percentages are stated as a percent of net assets.

(a)	Non income producing

(b)	The rate listed is the Fund’s 7-day yield as of April 30, 2010

Summary of Fair Value Exposure at April 30, 2010 (Unaudited)

The Fund has performed an analysis of all existing investments to determine the significance and character of all inputs to their fair value determination.

Level 1 –

Quoted unadjusted prices for identical instruments in active markets to which the Fund has access at the date of measurement.

Level 2 –

Level 3 –

The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.

The accompanying notes are an integral part of these financial statements.

WWW.HENNESSYFUNDS.COM

SUMMARY OF INVESTMENTS — HENNESSY CORNERSTONE LARGE GROWTH FUND

The following is a summary of the inputs used to value the Fund’s net assets as of April 30, 2010:

Common Stock	Level 1		Level 2		Level 3		Total
Consumer Discretionary	$	21,204,391	$	—	$	—	$	21,204,391
Consumer Staples		15,619,154		—		—		15,619,154
Energy		3,008,914		—		—		3,008,914
Financials		1,520,280		—		—		1,520,280
Health Care		15,406,630		—		—		15,406,630
Industrials		9,126,942		—		—		9,126,942
Information Technology		4,480,122		—		—		4,480,122
Materials		6,040,025		—		—		6,040,025
Total Common Stock	$	76,406,458	$	—	$	—	$	76,406,458
Short Term Investments	$	1,516,423	$	—	$	—	$	1,516,423
Total Investments in Securities	$	77,922,881	$	—	$	—	$	77,922,881

The accompanying notes are an integral part of these financial statements.

HENNESSY FUNDS 1-800-966-4354

HENNESSY CORNERSTONE VALUE FUND

(% of Net Assets)

	TOP TEN EQUITY HOLDINGS	% of net assets
	Limited Brands, Inc.	2.57%
	Boeing Co.	2.46%
	Hershey Co.	2.41%
	Emerson Electric Co.	2.27%
	EI du Pont de Nemours & Co.	2.27%
	Home Depot, Inc.	2.23%
	Eaton Corp.	2.21%
	PPG Industries, Inc.	2.21%
	United Parcel Service, Inc.	2.16%
	Sara Lee Corp.	2.16%

WWW.HENNESSYFUNDS.COM

SUMMARY OF INVESTMENTS — HENNESSY CORNERSTONE VALUE FUND

COMMON STOCKS – 97.39%	Number				% of Net
	of Shares		Value		Assets
Consumer Discretionary – 8.96%
Home Depot, Inc.		103,700	$	3,655,425		2.23	%
Limited Brands, Inc.		157,200		4,212,960		2.57	%
Mattel, Inc.		149,100		3,436,755		2.10	%
McDonald’s Corp.		47,800		3,374,202		2.06	%
				14,679,342		8.96	%
Consumer Staples – 23.80%
Altria Group, Inc.		151,200		3,203,928		1.95	%
Campbell Soup Co.		90,000		3,227,400		1.97	%
ConAgra Foods, Inc.		134,000		3,278,980		2.00	%
Diageo PLC – ADR (b)		43,600		2,970,904		1.81	%
HJ Heinz Co.		70,700		3,313,709		2.02	%
Hershey Co.		84,200		3,958,242		2.41	%
Kimberly Clark Corp.		46,900		2,873,094		1.75	%
Kraft Foods, Inc.		110,000		3,256,000		1.99	%
Philip Morris International, Inc.		61,000		2,993,880		1.83	%
Reynolds American, Inc.		55,900		2,986,178		1.82	%
Sara Lee Corp.		248,800		3,537,936		2.16	%
Sysco Corp.		108,400		3,418,936		2.09	%
				39,019,187		23.80	%
Energy – 10.71%
BP PLC – ADR (b)		52,900		2,758,735		1.68	%
Chevron Corp.		38,600		3,143,584		1.92	%
ENI SPA – ADR (b)		61,000		2,711,450		1.65	%
Marathon Oil Corp.		96,100		3,089,615		1.88	%
Royal Dutch Shell PLC – ADR (b)		51,100		3,206,525		1.96	%
Total SA – ADR (b)		48,700		2,648,306		1.62	%
				17,558,215		10.71	%
Financials – 2.02%
Marsh & McLennan Companies, Inc.		136,900		3,315,718		2.02	%

Health Care – 6.75%
Bristol-Myers Squibb Co.		115,200		2,913,408		1.78	%
GlaxoSmithKline PLC – ADR (b)		71,100		2,651,319		1.62	%
Merck & Co., Inc.		79,400		2,782,176		1.70	%

The accompanying notes are an integral part of these financial statements.

HENNESSY FUNDS 1-800-966-4354

COMMON STOCKS	Number				% of Net
	of Shares		Value		Assets
Health Care (Continued)
Pfizer, Inc.		162,300	$	2,713,656		1.65	%
				11,060,559		6.75	%
Industrials – 16.83%
Boeing Co.		55,600		4,027,108		2.46	%
Eaton Corp.		46,900		3,618,804		2.21	%
Emerson Electric Co.		71,100		3,713,553		2.27	%
Lockheed Martin Corp.		38,900		3,302,221		2.01	%
Pitney Bowes, Inc.		130,100		3,304,540		2.02	%
RR Donnelley & Sons Co.		137,400		2,952,726		1.80	%
United Parcel Service, Inc.		51,200		3,539,968		2.16	%
Waste Management, Inc.		90,000		3,121,200		1.90	%
				27,580,120		16.83	%
Information Technology – 7.46%
Automatic Data Processing, Inc.		70,100		3,039,536		1.85	%
Intel Corp.		151,300		3,454,179		2.11	%
Nokia OYJ – ADR (b)		238,600		2,901,376		1.77	%
Taiwan Semiconductor
Manufacturing Ltd.- ADR (b)		267,400		2,831,766		1.73	%
				12,226,857		7.46	%
Materials – 8.14%
EI du Pont de Nemours & Co.		93,200		3,713,088		2.27	%
MeadWestvaco Corp.		108,000		2,934,360		1.79	%
Nucor Corp.		67,800		3,072,696		1.87	%
PPG Industries, Inc.		51,400		3,617,018		2.21	%
				13,337,162		8.14	%
Telecommunication Services – 12.72%
AT&T, Inc.		108,700		2,832,722		1.73	%
BCE, Inc. (b)		114,500		3,446,450		2.10	%
China Mobile Ltd. – ADR (b)		64,600		3,158,940		1.93	%
Mobile Telesystems OJSC – ADR (b)		61,500		3,397,875		2.07	%
Telefonica De Argentina (a)(b)Ω		100		0		0.00	%
Telefonica SA – ADR (b)		36,100		2,446,858		1.49	%
Verizon Communications, Inc.		90,600		2,617,434		1.60	%

The accompanying notes are an integral part of these financial statements.

WWW.HENNESSYFUNDS.COM

SUMMARY OF INVESTMENTS — HENNESSY CORNERSTONE VALUE FUND

COMMON STOCKS	Number				% of Net
	of Shares		Value		Assets
Telecommunication Services (Continued)
Vodafone Group PLC – ADR (b)		132,800	$	2,948,160		1.80	%
				20,848,439		12.72	%

Total Common Stocks (Cost $146,141,449)				159,625,599		97.39	%

SHORT-TERM INVESTMENTS – 0.00%
Money Market Funds – 0.00%
Fidelity Government Portfolio, 0.0400% (c)		249		249		0.00	%

Total Money Market Funds (Cost $249)				249		0.00	%

Total Short-Term Investments
(Cost $249)				249		0.00	%

Total Investments – 97.39%
(Cost $146,141,698)				159,625,848		97.39	%

Other Assets in Excess of Liabilities – 2.61%				4,277,416		2.61	%
TOTAL NET ASSETS – 100.00%			$	163,903,264		100.00	%

Percentages are stated as a percent of net assets.

(a)	Non Income Producing

(b)	Foreign Issued Security

(c)	The rate listed is the Fund’s 7-day yield as of April 30, 2010.

Ω	Security is fair valued

The accompanying notes are an integral part of these financial statements.

HENNESSY FUNDS 1-800-966-4354

Summary of Fair Value Exposure at April 30, 2010 (Unaudited)

The Fund has performed an analysis of all existing investments to determine the significance and character of all inputs to their fair value determination.

Level 1 –

Quoted unadjusted prices for identical instruments in active markets to which the Fund has access at the date of measurement.

Level 2 –

Level 3 –

The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used to value the Fund’s net assets as of April 30, 2010:

	Level 1		Level 2		Level 3		Total
Equity
Consumer Discretionary	$	14,679,342	$	—	$	—	$	14,679,342
Consumer Staples		39,019,187		—		—		39,019,187
Energy		17,558,215		—		—		17,558,215
Financials		3,315,718		—		—		3,315,718
Health Care		11,060,559		—		—		11,060,559
Industrials		27,580,120		—		—		27,580,120
Information Technology		12,226,857		—		—		12,226,857
Materials		13,337,162		—		—		13,337,162
Telecommunication Services		20,848,439		—		—		20,848,439
Total Equity	$	159,625,599	$	—	$	—	$	159,625,599
Short-Term Investments	$	249	$	—	$	—	$	249
Total Investments in Securities	$	159,625,848	$	—	$	—	$	159,625,848

The accompanying notes are an integral part of these financial statements.

WWW.HENNESSYFUNDS.COM

SUMMARY OF INVESTMENTS — HENNESSY TOTAL RETURN FUND

HENNESSY TOTAL RETURN FUND

(% of Net Assets)

	TOP TEN EQUITY HOLDINGS	% of net assets
	EI Du Pont de Nemours & Co.	8.28%
	Chevron Corp.	6.97%
	AT&T, Inc.	6.71%
	Pfizer, Inc.	6.55%
	Kraft Foods, Inc.	6.38%
	Verizon Communications, Inc.	6.34%
	Merck & Co., Inc.	6.33%
	McDonald’s Corp.	6.28%
	Home Depot, Inc.	6.26%
	Boeing Co.	4.60%

HENNESSY FUNDS 1-800-966-4354

COMMON STOCKS – 73.22%	Number				% of Net
	of Shares		Value		Assets
Consumer Discretionary – 12.54%
Home Depot, Inc.		96,900	$	3,415,725		6.26	%
McDonald’s Corp.		48,600		3,430,674		6.28	%
				6,846,399		12.54	%
Consumer Staples – 8.10%
Coca-Cola Co.		17,600		940,720		1.72	%
Kraft Foods, Inc.		117,600		3,480,960		6.38	%
				4,421,680		8.10	%
Energy – 6.97%
Chevron Corp.		46,700		3,803,248		6.97	%

Health Care – 15.84%
Johnson & Johnson		25,100		1,613,930		2.96	%
Merck & Co., Inc.		98,600		3,454,944		6.33	%
Pfizer, Inc.		214,000		3,578,080		6.55	%
				8,646,954		15.84	%
Industrials – 7.28%
Boeing Co.		34,700		2,513,321		4.60	%
Caterpillar, Inc.		21,500		1,463,935		2.68	%
				3,977,256		7.28	%
Information Technology – 1.16%
Intel Corp.		27,700		632,391		1.16	%

Materials – 8.28%
EI Du Pont de Nemours & Co.		113,500		4,521,840		8.28	%

Telecommunication Services – 13.05%
AT&T, Inc.		140,500		3,661,430		6.71	%
Verizon Communications, Inc.		119,800		3,461,022		6.34	%
				7,122,452		13.05	%

Total Common Stocks (Cost $38,394,858)				39,972,220		73.22	%

The accompanying notes are an integral part of these financial statements.

WWW.HENNESSYFUNDS.COM

SUMMARY OF INVESTMENTS — HENNESSY TOTAL RETURN FUND

SHORT-TERM INVESTMENTS – 56.49%	Number					% of Net
	of Shares		Value			Assets
Money Market Funds – 5.21%
Fidelity Government Obligation, 0.0200% (a)		404,267	$	404,267			0.74	%
Fidelity Government Portfolio, 0.0400% (a)		2,441,981		2,441,981			4.47	%

Total Money Market Funds (Cost $2,846,248)				2,846,248			5.21	%

U.S. Treasury Bills* – 51.28%
0.2500%, 6/10/2010		28,000,000		27,996,111			51.28	%

Total U.S. Treasury Bills (Cost $27,996,111)				27,996,111			51.28	%

Total Short-Term Investments
(Cost $30,842,359)				30,842,359			56.49	%

Total Investments – 129.71%
(Cost $69,237,217)				70,814,579			129.71	%

Liabilities in Excess of Other Assets – (29.71)%				(16,220,187	)		(29.71	)%
TOTAL NET ASSETS – 100.00%			$	54,594,392			100.00	%

(a)	The rate listed is the Fund’s 7-day yield as of April 30, 2010.

*	Collateral or partial collateral for securities sold subject to repurchase.

Summary of Fair Value Exposure at April 30, 2010 (Unaudited)

The Fund has performed an analysis of all existing investments to determine the significance and character of all inputs to their fair value determination.

Level 1 –

Quoted unadjusted prices for identical instruments in active markets to which the Fund has access at the date of measurement.

Level 2 –

Level 3 –

The accompanying notes are an integral part of these financial statements.

HENNESSY FUNDS 1-800-966-4354

The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used to value the Fund’s net assets as of April 30, 2010:

	Level 1		Level 2		Level 3		Total
Equity
Consumer Discretionary	$	6,846,399	$	—	$	—	$	6,846,399
Consumer Staples		4,421,680		—		—		4,421,680
Energy		3,803,248		—		—		3,803,248
Health Care		8,646,954		—		—		8,646,954
Industrials		3,977,256		—		—		3,977,256
Information Technology		632,391		—		—		632,391
Materials		4,521,840		—		—		4,521,840
Telecommunication Services		7,122,452		—		—		7,122,452
Total Equity	$	39,972,220	$	—	$	—	$	39,972,220
Short-Term Investments	$	2,846,248	$	27,996,111	$	—	$	30,842,359
Total Investments in Securities	$	42,818,468	$	27,996,111	$	—	$	70,814,579

The accompanying notes are an integral part of these financial statements.

WWW.HENNESSYFUNDS.COM

SUMMARY OF INVESTMENTS — HENNESSY BALANCED FUND

HENNESSY BALANCED FUND

(% of Net Assets)

	TOP TEN EQUITY HOLDINGS	% of net assets
	EI Du Pont de Nemours & Co.	5.69%
	Home Depot, Inc.	5.38%
	Chevron Corp.	5.36%
	McDonald’s Corp.	5.01%
	AT&T, Inc.	4.98%
	Kraft Foods, Inc.	4.92%
	Verizon Communications, Inc.	4.75%
	Pfizer, Inc.	4.62%
	Merck & Co., Inc.	4.61%
	Coca-Cola Co.	2.30%

HENNESSY FUNDS 1-800-966-4354

COMMON STOCKS – 51.57%	Number				% of Net
	of Shares		Value		Assets
Consumer Discretionary – 10.39%
Home Depot, Inc.		18,800	$	662,700		5.38	%
McDonald’s Corp.		8,750		617,663		5.01	%
				1,280,363		10.39	%
Consumer Staples – 7.22%
Coca-Cola Co.		5,300		283,285		2.30	%
Kraft Foods, Inc.		20,500		606,800		4.92	%
				890,085		7.22	%
Energy – 5.36%
Chevron Corp.		8,100		659,664		5.36	%

Health Care – 9.70%
Johnson & Johnson		900		57,870		0.47	%
Merck & Co., Inc.		16,200		567,648		4.61	%
Pfizer, Inc.		34,050		569,316		4.62	%
				1,194,834		9.70	%
Industrials – 2.72%
Boeing Co.		2,000		144,860		1.17	%
Caterpillar, Inc.		2,800		190,652		1.55	%
				335,512		2.72	%
Information Technology – 0.76%
Intel Corp.		4,100		93,603		0.76	%

Materials – 5.69%
EI Du Pont de Nemours & Co.		17,600		701,184		5.69	%

Telecommunication Services – 9.73%
AT&T, Inc.		23,550		613,713		4.98	%
Verizon Communications, Inc.		20,250		585,022		4.75	%
				1,198,735		9.73	%

Total Common Stocks (Cost $6,249,264)				6,353,980		51.57	%

The accompanying notes are an integral part of these financial statements.

WWW.HENNESSYFUNDS.COM

SUMMARY OF INVESTMENTS — HENNESSY BALANCED FUND

SHORT-TERM INVESTMENTS – 47.94%	Number				% of Net
	of Shares		Value		Assets
U.S. Treasury Bills – 45.48%
3.625%, 06/15/2010		300,000	$	301,254		2.44	%
4.125%, 08/15/2010		1,000,000		1,011,367		8.21	%
4.250%, 10/15/2010		900,000		916,312		7.44	%
1.250%, 11/30/2010		1,100,000		1,106,145		8.98	%
4.250%, 01/15/2011		700,000		719,277		5.84	%
5.000%, 02/15/2011		1,300,000		1,347,277		10.94	%
0.875%, 04/30/2011		200,000		200,844		1.63	%

Total U.S. Treasury Bills (Cost $5,602,434)				5,602,476		45.48	%
Money Market Funds – 2.46%
Fidelity Government Portfolio, 0.0400% (a)		303,470		303,470		2.46	%

Total Money Market Funds (Cost $303,470)				303,470		2.46	%

Total Short-Term Investments
(Cost $5,905,904)				5,905,946		47.94	%

Total Investments – 99.51%
(Cost $12,155,168)				12,259,926		99.51	%

Other Assets in Excess of Liabilities – 0.49%				59,874		0.49	%
TOTAL NET ASSETS – 100.00%			$	12,319,800		100.00	%

(a)	The rate listed is the Fund’s 7 -day yield as of April 30, 2010.

The accompanying notes are an integral part of these financial statements.

HENNESSY FUNDS 1-800-966-4354

Summary of Fair Value Exposure at April 30, 2010 (Unaudited)

The Fund has performed an analysis of all existing investments to determine the significance and character of all inputs to their fair value determination.

Level 1 –

Quoted unadjusted prices for identical instruments in active markets to which the Fund has access at the date of measurement.

Level 2 –

Level 3 –

The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used to value the Fund’s net assets as of April 30, 2010:

	Level 1		Level 2		Level 3		Total
Equity
Consumer Discretionary	$	1,280,363	$	—	$	—	$	1,280,363
Consumer Staples		890,085		—		—		890,085
Energy		659,664		—		—		659,664
Health Care		1,194,834		—		—		1,194,834
Industrials		335,512		—		—		335,512
Information Technology		93,603		—		—		93,603
Materials		701,184		—		—		701,184
Telecommunication Services		1,198,735		—		—		1,198,735
Total Equity	$	6,353,980	$	—	$	—	$	6,353,980
Short-Term Investments	$	303,470	$	5,602,476	$	—	$	5,905,946
Total Investments in Securities	$	6,657,450	$	5,602,476	$	—	$	12,259,926

The accompanying notes are an integral part of these financial statements.

WWW.HENNESSYFUNDS.COM

SUMMARY OF INVESTMENTS — HENNESSY BALANCED FUND

(This Page Intentionally Left Blank.)

HENNESSY FUNDS 1-800-966-4354

Financial Statements

Statements of Assets and Liabilities as of April 30, 2010 (Unaudited)

	HENNESSY
	CORNERSTONE
	GROWTH FUND
ASSETS:
Investments in securities, at value (cost $205,298,929, $24,363,907,
$123,108,788, $71,748,731, $146,141,698, $69,237,217 and $12,155,168, respectively)	$	240,565,898
Cash		—
Dividends and interest receivable		366,073
Receivable for fund shares sold		17,589
Receivable for securities sold		—
Prepaid expenses and other assets		22,120
Total Assets		240,971,680

LIABILITIES:
Loan Payable		—
Payable for securities purchased		36,489
Payable for fund shares redeemed		223,600
Payable to Advisor		149,688
Payable to Administrator		147,039
Due to Custodian		73,967
Reverse repurchase agreement		—
Accrued interest payable		—
Accrued service fees		19,831
Accrued expenses and other payables		79,646
Total Liabilities		730,260
NET ASSETS	$	240,241,420

NET ASSETS CONSIST OF:
Capital stock	$	484,492,078
Accumulated net investment income (loss)		(993,296	)
Accumulated net realized gain (loss) on investments		(278,524,331	)
Unrealized net appreciation (depreciation) on investments		35,266,969
Total Net Assets	$	240,241,420

NET ASSETS
Original Class:
Shares authorized ($.0001 par value)		25,000,000,000
Net assets applicable to outstanding Original Class shares		235,542,400
Shares issued and outstanding		22,229,988
Net asset value, offering price and redemption price per share	$	10.60

Institutional Class:
Shares authorized ($.0001 par value)		25,000,000,000
Net assets applicable to outstanding Institutional Class shares		4,699,020
Shares issued and outstanding		440,332
Net asset value, offering price and redemption price per share	$	10.67

The accompanying notes are an integral part of these financial statements.

WWW.HENNESSYFUNDS.COM

FINANCIAL STATEMENTS — STATEMENTS OF ASSETS AND LIABILITIES

HENNESSY						HENNESSY
CORNERSTONE			HENNESSY			CORNERSTONE		HENNESSY			HENNESSY			HENNESSY
GROWTH FUND,			FOCUS 30			LARGE GROWTH		CORNERSTONE			TOTAL RETURN			BALANCED
SERIES II			FUND			FUND		VALUE FUND			FUND			FUND


$	34,317,810		$	150,355,686		$	77,922,881	$	159,625,848		$	70,814,579		$	12,259,926
	—			—			2,340		—			—			—
	2,007			138,218			58,655		274,300			126,723			62,918
	428			99,416			4,002		4,295			1,278			31
	—			—			58,184,413		5,758,359			—			77,561
	24,791			22,759			63,441		22,510			10,706			15,139
	34,345,036			150,616,079			136,235,732		165,685,312			70,953,286			12,415,575

	—			—			—		472,000			—			—
	—			—			57,591,447		—			—			56,074
	21,111			179,781			7,552		142,242			44,329			—
	20,411			93,063			49,407		103,900			27,153			6,168
	19,932			84,046			47,696		98,776			34,013			7,738
	—			—			—		941,000			—			—
	—			—			—		—			16,191,000			—
	—			—			—		—			5,761			—
	2,740			10,675			6,486		13,932			4,526			1,028
	33,107			46,567			16,025		10,198			52,112			24,767
	97,301			414,132			57,718,613		1,782,048			16,358,894			95,775
$	34,247,735		$	150,201,947		$	78,517,119	$	163,903,264		$	54,594,392		$	12,319,800

$	85,266,962		$	209,499,816		$	71,943,835	$	215,553,505		$	68,805,793		$	14,603,214
	(131,255	)		(146,757	)		372,538		1,300,266			(76,309	)		4,470
	(60,841,875	)		(86,398,010	)		26,596		(66,434,657	)		(15,712,454	)		(2,392,642	)
	9,953,903			27,246,898			6,174,150		13,484,150			1,577,362			104,758
$	34,247,735		$	150,201,947		$	78,517,119	$	163,903,264		$	54,594,392		$	12,319,800


Unlimited				25,000,000,000		Unlimited			25,000,000,000			100,000,000			100,000,000
	33,942,238			127,914,103			78,460,173		162,629,403			54,594,392			12,319,800
	2,394,084			12,066,115			7,016,401		13,548,701			5,427,915			1,225,575
$	14.18		$	10.60		$	11.18	$	12.00		$	10.06		$	10.05

Unlimited				25,000,000,000		Unlimited			25,000,000,000
	305,497			22,287,844			56,946		1,273,861
	21,248			2,085,978			5,076		106,184
$	14.38		$	10.68		$	11.22	$	12.00

HENNESSY FUNDS 1-800-966-4354

Financial Statements

Statements of Operations Six Months Ended April 30, 2010 (Unaudited)


	HENNESSY
	CORNERSTONE
	GROWTH FUND
INVESTMENT INCOME:
Dividend income(1)	$	576,539
Interest income		2,216
Total investment income		578,755

EXPENSES:
Investment advisory fees		875,451
Administration, fund accounting, custody and transfer agent fees		301,676
Distribution fees – Original Class (See Note 5)		—
Service fees – Original Class (See Note 5)		116,038
Federal and state registration fees		15,062
Audit fees		12,256
Legal fees		7,456
Compliance expense		1,740
Reports to shareholders		43,398
Directors’ fees and expenses		5,305
Sub-transfer agent expenses – Original Class (See Note 5)		180,267
Sub-transfer agent expenses – Institutional Class (See Note 5)		215
Interest expense (See Note 3 and 6)		—
Other		15,654
Total expenses before reimbursement from advisor		1,574,518
Expense recoupment from advisor – Original Class		—
Expense reimbursement from advisor – Institutional Class		—
Administrative Expense Waiver (See Note 5)		(2,467	)
Net expenses		1,572,051
NET INVESTMENT INCOME (LOSS)	$	(993,296	)

REALIZED AND UNREALIZED GAINS (LOSSES):
Net realized gain (loss) on:
Unaffiliated investments	$	13,948,137
Affiliated investments		—
Change in unrealized appreciation (depreciation) on investments		31,000,866
Net gain (loss) on investments		44,949,003
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	43,955,707

(1)	Net of foreign taxes withheld of $7,561, $0, $0, $0, $55,933, $0 and $0, respectively.

The accompanying notes are an integral part of these financial statements.

WWW.HENNESSYFUNDS.COM

FINANCIAL STATEMENTS — STATEMENTS OF OPERATIONS

HENNESSY						HENNESSY
CORNERSTONE			HENNESSY			CORNERSTONE			HENNESSY			HENNESSY		HENNESSY
GROWTH FUND,			FOCUS 30			LARGE GROWTH			CORNERSTONE			TOTAL RETURN		BALANCED
SERIES II			FUND			FUND			VALUE FUND			FUND		FUND

$	125,428		$	864,137		$	854,759		$	2,432,043		$	775,839	$	105,559
	438			1,455			501			1,158			13,740		10,224
	125,866			865,592			855,260			2,433,201			789,579		115,783


	117,136			566,571			274,853			582,131			161,378		36,524
	40,364			195,237			94,713			200,599			68,586		15,523
	—			—			—			—			40,345		9,131
	15,690			63,271			37,118			78,055			26,896		6,087
	16,270			18,017			20,392			14,797			8,996		9,945
	10,465			9,592			11,893			10,826			10,074		10,069
	7,439			6,206			5,950			6,206			4,965		4,960
	1,740			1,740			1,740			1,740			1,740		1,740
	7,458			24,740			6,199			13,927			5,202		1,339
	5,256			5,306			4,959			5,058			3,969		3,720
	28,812			123,492			7,424			65,450			—		—
	118			6,869			—			91			—		—
	—			904			—			43			14,961		—
	7,001			12,651			6,979			7,602			4,357		1,369
	257,749			1,034,596			472,220			986,525			351,469		100,407
	—			—			10,544			—			—		—
	(273	)		—			—			—			—		—
	(355	)		(22,247	)		(42	)		(652	)		—		—
	257,121			1,012,349			482,722			985,873			351,469		100,407
$	(131,255	)	$	(146,757	)	$	372,538		$	1,447,328		$	438,110	$	15,376



$	557,933		$	2,716,693		$	21,469,092		$	18,863,775		$	3,667,571	$	1,125,462
	—			—			—			166,409			—		—
	7,455,777			27,305,435			(9,344,708	)		1,495,283			1,926,383		(424,621	)
	8,013,710			30,022,128			12,124,384			20,525,467			5,593,954		700,841
$	7,882,455		$	29,875,371		$	12,496,922		$	21,972,795		$	6,032,064	$	716,217

HENNESSY FUNDS 1-800-966-4354

Financial Statements

Statements of Changes in Net Assets

	Hennessy Cornerstone Growth Fund
	Six Months Ended
	April 30, 2010			Year Ended
	(Unaudited)			October 31, 2009
OPERATIONS:
Net investment income (loss)	$	(993,296	)	$	(1,059,159	)
Net realized gain (loss) on securities		13,948,137			(175,588,612	)
Change in unrealized appreciation (depreciation) on securities		31,000,866			171,339,271
Net increase (decrease) in net assets resulting from operations		43,955,707			(5,308,500	)

DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income – Original Class		—			—
Net investment income – Institutional Class		—			—
Net realized gains – Original Class		—			—
Net realized gains – Institutional Class		—			—
Total distributions		—			—

CAPITAL SHARE TRANSACTIONS:
Proceeds from shares subscribed – Original Class		3,883,666			13,769,357
Proceeds from shares subscribed – Institutional Class		76,163			135,313
Dividends reinvested – Original Class		—			—
Dividends reinvested – Institutional Class		—			—
Cost of shares redeemed – Original Class		(40,389,596	)		(92,048,170	)
Cost of shares redeemed – Institutional Class		(922,873	)		(498,966	)
Net increase (decrease) in net assets
derived from capital share transactions		(37,352,640	)		(78,642,466	)
TOTAL INCREASE (DECREASE) IN NET ASSETS		6,603,067			(83,950,966	)

NET ASSETS:
Beginning of period		233,638,353			317,589,319
End of period	$	240,241,420		$	233,638,353
Accumulated net investment income (loss), end of period	$	(993,296	)	$	—

CHANGES IN SHARES OUTSTANDING:
Shares sold – Original Class		395,601			1,670,446
Shares sold – Institutional Class		7,153			16,333
Shares issued to holders as reinvestment of dividends
Original Class		—			—
Institutional Class		—			—
Shares redeemed – Original Class		(4,140,607	)		(11,189,297	)
Shares redeemed – Institutional Class		(94,775	)		(65,345	)
Net increase (decrease) in shares outstanding		(3,832,628	)		(9,567,863	)

The accompanying notes are an integral part of these financial statements.

WWW.HENNESSYFUNDS.COM

FINANCIAL STATEMENTS — STATEMENTS OF CHANGES IN NET ASSETS

Hennessy Cornerstone Growth Fund, Series II						Hennessy Focus 30 Fund
Six Months Ended						Six Months Ended
April 30, 2010			Year Ended			April 30, 2010			Year Ended
(Unaudited)			October 31, 2009			(Unaudited)			October 31, 2009

$	(131,255	)	$	(130,836	)	$	(146,757	)	$	(225,481	)
	557,933			(25,002,829	)		2,716,693			(41,135,146	)
	7,455,777			26,641,700			27,305,435			51,687,206
	7,882,455			1,508,035			29,875,371			10,326,579

	—			—			—			—
	—			—			—			—
	—			—			—			—
	—			—			—			—
	—			—			—			—

	628,845			884,541			5,143,348			28,044,578
	5,895			229,027			1,079,094			3,182,769
	—			—			—			—
	—			—			—			—
	(4,311,817	)		(8,829,446	)		(30,501,142	)		(75,221,408	)
	(55,306	)		(21,810	)		(11,192,198	)		(4,641,964	)

	(3,732,383	)		(7,737,688	)		(35,470,898	)		(48,636,025	)
	4,150,072			(6,229,653	)		(5,595,527	)		(38,309,446	)


	30,097,663			36,327,316			155,797,474			194,106,920
$	34,247,735		$	30,097,663		$	150,201,947		$	155,797,474
$	(131,255	)	$	—		$	(146,757	)	$	—

	49,448			90,535			520,277			3,800,184
	476			21,589			112,283			412,433

	—			—			—			—
	—			—			—			—
	(344,238	)		(904,443	)		(3,162,340	)		(9,945,713	)
	(4,542	)		(2,266	)		(1,152,422	)		(619,087	)
	(298,856	)		(794,585	)		(3,682,202	)		(6,352,183	)

HENNESSY FUNDS 1-800-966-4354

Financial Statements

Statements of Changes in Net Assets







OPERATIONS:
Net investment income (loss)
Net realized gain (loss) on securities
Change in unrealized appreciation (depreciation) on securities
Net increase (decrease) in net assets resulting from operations

DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income – Original Class
Net investment income – Institutional Class
Net realized gains – Original Class
Net realized gains – Institutional Class
Total distributions

CAPITAL SHARE TRANSACTIONS:
Proceeds from shares issued in the reorganization (See Note 8)
Proceeds from shares subscribed – Original Class
Proceeds from shares subscribed – Institutional Class
Proceeds from shares subscribed – Predecessor Class A
Proceeds from shares subscribed – Predecessor Class I
Proceeds from shares subscribed – Predecessor Class C
Proceeds from shares subscribed – Predecessor Class S
Dividends reinvested – Original Class
Dividends reinvested – Institutional Class
Cost of shares redeemed – Original Class
Cost of shares redeemed – Institutional Class
Cost of shares redeemed – Predecessor Class A
Cost of shares redeemed – Predecessor Class I
Cost of shares redeemed – Predecessor Class C
Cost of shares redeemed – Predecessor Class R
Cost of shares redeemed – Predecessor Class S
Cost of shares redeemed in the reorganization – Predecessor Class A (See Note 8)
Cost of shares redeemed in the reorganization – Predecessor Class I (See Note 8)
Cost of shares redeemed in the reorganization – Predecessor Class C (See Note 8)
Cost of shares redeemed in the reorganization – Predecessor Class R (See Note 8)
Cost of shares redeemed in the reorganization – Predecessor Class S (See Note 8)
Net increase (decrease) in net assets derived from capital share transactions

TOTAL INCREASE (DECREASE) IN NET ASSETS
NET ASSETS:
Beginning of period
End of period

Accumulated net investment income (loss), end of period

*	For the one month period ended October 31, 2009. Effective October 31, 2009, the Fund changed its fiscal year end to October 31st from September 30th.

The accompanying notes are an integral part of these financial statements.

WWW.HENNESSYFUNDS.COM

FINANCIAL STATEMENTS — STATEMENTS OF CHANGES IN NET ASSETS

Hennessy Cornerstone Large Growth Fund
Six Months Ended
April 30, 2010			One Month Ended			Year Ended
(Unaudited)			October 31, 2009*			September 30, 2009

$	372,538		$	(3,301	)	$	356,226
	21,469,092			810,847			(21,384,860	)
	(9,344,708	)		(1,552,441	)		14,850,433
	12,496,922			(744,895	)		(6,178,201	)

	(358,186	)		—			—
	(235	)		—			—
	—			—			—
	—			—			—
	(358,421	)		—			—

	—			—			51,980,253
	664,730			92,349			399,858
	14,036			914			30,524
	—			—			354,913
	—			—			1,450
	—			—			—
	—			—			226,710
	322,821			—			—
	235			—			—
	(4,070,505	)		(549,997	)		(3,502,412	)
	(2,812	)		—			—
	—			—			(394,647	)
	—			—			(103,571	)
	—			—			(1,916	)
	—			—			(1,961	)
	—			—			(4,936,283	)
	—			—			(2,045,574	)
	—			—			(293,648	)
	—			—			(81,763	)
	—			—			(3,654	)
	—			—			(49,555,614	)
	(3,071,495	)		(456,734	)		(7,927,335	)
	9,067,006			(1,201,629	)		(14,105,536	)

	69,450,113			70,651,742			84,757,278
$	78,517,119		$	69,450,113		$	70,651,742
$	372,538		$	358,421		$	358,421

HENNESSY FUNDS 1-800-966-4354

Financial Statements

Statements of Changes in Net Assets

CHANGES IN SHARES OUTSTANDING:

Shares issued in connection with reorganization

Shares sold – Original Class

Shares sold – Institutional Class

Shares sold – Predecessor Class A

Shares sold – Predecessor Class I

Shares sold – Predecessor Class C

Shares sold – Predecessor Class S

Shares issued to holders as reinvestment of dividends – Original Class

Shares issued to holders as reinvestment of dividends – Institutional Class

Shares redeemed – Original Class

Shares redeemed – Institutional Class

Shares redeemed – Predecessor Class A

Shares redeemed – Predecessor Class I

Shares redeemed – Predecessor Class C

Shares redeemed – Predecessor Class R

Shares redeemed – Predecessor Class S

Shares redeemed in the reorganization – Predecessor Class A

Shares redeemed in the reorganization – Predecessor Class I

Shares redeemed in the reorganization – Predecessor Class C

Shares redeemed in the reorganization – Predecessor Class R

Shares redeemed in the reorganization – Predecessor Class S

Net increase (decrease) in shares outstanding

*	For the one month period ended October 31, 2009. Effective October 31, 2009, the Fund changed its fiscal year end to October 31st from September 30th.

The accompanying notes are an integral part of these financial statements.

WWW.HENNESSYFUNDS.COM

FINANCIAL STATEMENTS — STATEMENTS OF CHANGES IN NET ASSETS

Hennessy Cornerstone Large Growth Fund
Six Months Ended
April 30, 2010			One Month Ended			Year Ended
(Unaudited)			October 31, 2009*			September 30, 2009

	—			—			7,722,854
	63,738			9,537			47,603
	1,365			93			3,873
	—			—			49,665
	—			—			198
	—			—			—
	—			—			30,610
	31,251			—			—
	23			—			—
	(389,251	)		(55,752	)		(413,579	)
	(278	)		—			—
	—			—			(55,087	)
	—			—			(14,533	)
	—			—			(317	)
	—			—			(316	)
	—			—			(685,035	)
	—			—			(309,689	)
	—			—			(43,625	)
	—			—			(12,829	)
	—			—			(560	)
	—			—			(7,362,580	)
	(293,152	)		(46,122	)		(1,043,347	)

HENNESSY FUNDS 1-800-966-4354

Financial Statements

Statements of Changes in Net Assets

	Hennessy Cornerstone Value Fund
	Six Months Ended
	April 30, 2010			Year Ended
	(Unaudited)			October 31, 2009
OPERATIONS:
Net investment income (loss)	$	1,447,328		$	3,055,816
Net realized gain (loss) on securities		19,030,184			(56,656,130	)
Change in unrealized appreciation (depreciation) on securities		1,495,283			74,246,459
Net increase (decrease) in net assets resulting from operations		21,972,795			20,646,145

DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income – Original Class		(2,734,232	)		(5,597,237	)
Net investment income – Institutional Class		(23,987	)		(55,214	)
Net realized gains – Original Class		—			—
Net realized gains – Institutional Class		—			—
Total distributions		(2,758,219	)		(5,652,451	)

CAPITAL SHARE TRANSACTIONS:
Proceeds from shares subscribed – Original Class		25,411,399			43,322,159
Proceeds from shares subscribed – Institutional Class		65,424			39,402
Dividends reinvested – Original Class		2,464,535			4,981,771
Dividends reinvested – Institutional Class		14,974			33,372
Cost of shares redeemed – Original Class		(30,220,715	)		(14,327,901	)
Cost of shares redeemed – Institutional Class		(58,696	)		(10,708	)
Net increase (decrease) in net assets
derived from capital share transactions		(2,323,079	)		34,038,095

TOTAL INCREASE (DECREASE) IN NET ASSETS		16,891,497			49,031,789

NET ASSETS:
Beginning of period		147,011,767			97,979,978
End of period	$	163,903,264		$	147,011,767

Accumulated net investment income (loss), end of period	$	1,300,266		$	2,611,157

The accompanying notes are an integral part of these financial statements.

WWW.HENNESSYFUNDS.COM

FINANCIAL STATEMENTS — STATEMENTS OF CHANGES IN NET ASSETS

Hennessy Total Return Fund							Hennessy Balanced Fund
Six Months Ended							Six Months Ended
April 30, 2010			Year Ended				April 30, 2010			Year Ended
(Unaudited)			October 31, 2009				(Unaudited)			October 31, 2009

$	438,110		$	1,043,226			$	15,376		$	123,592
	3,667,571			(17,884,613	)			1,125,462			(2,906,301	)
	1,926,383			16,495,364		��		(424,621	)		3,283,017
	6,032,064			(346,023	)			716,217			500,308

	(601,289	)		(956,356	)			(15,813	)		(138,030	)
	N/A			N/A				N/A			N/A
	—			—				—			—
	N/A			N/A				N/A			N/A
	(601,289	)		(956,356	)			(15,813	)		(138,030	)

	1,284,159			657,981				759,455			795,947
	N/A			N/A				N/A			N/A
	554,393			884,126				15,406			134,495
	N/A			N/A				N/A			N/A
	(5,054,617	)		(6,082,697	)			(626,548	)		(1,280,181	)
	N/A			N/A				N/A			N/A

	(3,216,065	)		(4,540,590	)			148,313			(349,739	)

	2,214,710			(5,842,969	)			848,717			12,539


	52,379,682			58,222,651				11,471,083			11,458,544
$	54,594,392		$	52,379,682			$	12,319,800		$	11,471,083

$	(76,309	)	$	86,870			$	4,470		$	4,907

HENNESSY FUNDS 1-800-966-4354

Financial Statements

Statements of Changes in Net Assets

	Hennessy Cornerstone Value Fund
	Six Months Ended
	April 30, 2010			Year Ended
	(Unaudited)			October 31, 2009
CHANGES IN SHARES OUTSTANDING:
Shares sold
Original Class		2,208,667			4,111,585
Institutional Class		5,786			4,670
Shares issued to holders as reinvestment of dividends
Original Class		216,187			638,689
Institutional Class		1,315			4,290
Shares redeemed
Original Class		(2,605,596	)		(1,749,104	)
Institutional Class		(4,996	)		(1,328	)
Net increase (decrease) in shares outstanding		(178,637	)		3,008,802

The accompanying notes are an integral part of these financial statements.

WWW.HENNESSYFUNDS.COM

FINANCIAL STATEMENTS — STATEMENTS OF CHANGES IN NET ASSETS

Hennessy Total Return Fund						Hennessy Balanced Fund
Six Months Ended						Six Months Ended
April 30, 2010			Year Ended			April 30, 2010			Year Ended
(Unaudited)			October 31, 2009			(Unaudited)			October 31, 2009


	131,479			79,969			76,666			91,298
	N/A			N/A			N/A			N/A

	55,865			110,321			1,544			16,328
	N/A			N/A			N/A			N/A

	(517,368	)		(746,373	)		(62,892	)		(155,366	)
	N/A			N/A			N/A			N/A
	(330,024	)		(556,083	)		15,318			(47,740	)

HENNESSY FUNDS 1-800-966-4354

Financial Highlights

Hennessy Cornerstone Growth Fund

For an Original Class share outstanding throughout each period

	Six Months
	Ended
	April 30, 2010
	(Unaudited)
PER SHARE DATA:
Net asset value, beginning of period	$	8.81

Income from investment operations:
Net investment gain (loss)		(0.04	)
Net realized and unrealized gains (losses) on securities		1.83
Total from investment operations		1.79

Less Distributions:
Dividends from net investment income		—
Dividends from net realized gains		—
Total distributions		—
Redemption fees retained(1)		—
Net asset value, end of period	$	10.60

TOTAL RETURN		20.32	%(2)

SUPPLEMENTAL DATA AND RATIOS:
Net assets, end of period (millions)	$	235.54
Ratio of expenses to average net assets:		1.34	%(3)
Ratio of net investment income to average net assets		(0.42	)%(3)
Portfolio turnover rate(4)		97	%(2)

(1)	Amount is less than $0.01.

(2)	Not Annualized.

(3)	Annualized.

(4)	Portfolio turnover is calculated on the basis of the Fund as a whole.

The accompanying notes are an integral part of these financial statements.

WWW.HENNESSYFUNDS.COM

FINANCIAL HIGHLIGHTS — HENNESSY CORNERSTONE GROWTH FUND

Year Ended October 31,
2009			2008			2007			2006			2005

$	8.80		$	19.41		$	20.77		$	19.49		$	19.38


	(0.04	)		(0.05	)		(0.07	)		(0.04	)		(0.14	)
	0.05			(8.32	)		1.82			2.55			4.13
	0.01			(8.37	)		1.75			2.51			3.99


	—			—			—			—			—
	—			(2.24	)		(3.11	)		(1.23	)		(3.88	)
	—			(2.24	)		(3.11	)		(1.23	)		(3.88	)
	—			—			—			—			—
$	8.81		$	8.80		$	19.41		$	20.77		$	19.49

	0.11	%		(48.00	)%		9.65	%		13.59	%		23.17	%


$	228.96		$	312.50		$	990.43		$	1,250.67		$	1,071.78
	1.36	%		1.25	%		1.20	%		1.21	%		1.23	%
	(0.42	)%		(0.29	)%		(0.32	)%		(0.20	)%		(0.78	)%
	108	%		103	%		97	%		90	%		89	%

HENNESSY FUNDS 1-800-966-4354

Financial Highlights

Hennessy Cornerstone Growth Fund

For an Institutional Class share outstanding throughout each period

	Six Months
	Ended
	April 30, 2010
	(Unaudited)
PER SHARE DATA:
Net asset value, beginning of period	$	8.86

Income from investment operations:
Net investment gain (loss)		(0.03	)
Net realized and unrealized gains (losses) on securities		1.84
Total from investment operations		1.81

Less Distributions:
Dividends from net investment income		—
Dividends from net realized gains		—
Total distributions		—
Redemption fees retained(2)		—
Net asset value, end of period	$	10.67

TOTAL RETURN		20.43	%(3)

SUPPLEMENTAL DATA AND RATIOS:
Net assets, end of period (millions)	$	4.70
Ratio of expenses to average net assets:
Before expense reimbursement		1.09	%(4)
After expense reimbursement(5)		0.98	%(4)
Ratio of net investment income to average net assets
Before expense reimbursement		(0.60	)%(4)
After expense reimbursement(5)		(0.49	)%(4)
Portfolio turnover rate(6)		97	%(3)

(1)	Institutional Class shares commenced operations on March 3, 2008.

(2)	Amount is less than $0.01.

(3)	Not Annualized.

(4)	Annualized.

(5)	The Advisor has agreed to reimburse expenses in order to cap the Institutional Class share expenses. Please refer to Note 5 for more information.

(6)	Portfolio turnover is calculated on the basis of the Fund as a whole.

The accompanying notes are an integral part of these financial statements.

WWW.HENNESSYFUNDS.COM

FINANCIAL HIGHLIGHTS — HENNESSY CORNERSTONE GROWTH FUND


Year Ended October 31,
2009			2008(1)

$	8.82		$	13.29


	—			0.01
	0.04			(4.48	)
	0.04			(4.47	)


	—			—
	—			—
	—			—
	—			—
$	8.86		$	8.82

	0.45	%		(34.13	)%(3)


$	4.68		$	5.09

	1.11	%		1.12	%(4)
	0.98	%		0.98	%(4)

	(0.17	)%		0.15	%(4)
	(0.04	)%		0.29	%(4)
	108	%		103	%(3)

HENNESSY FUNDS 1-800-966-4354

Financial Highlights

Hennessy Cornerstone Growth Fund, Series II

For an Original Class share outstanding throughout each period

	Six Months
	Ended
	April 30, 2010
	(Unaudited)
PER SHARE DATA:
Net asset value, beginning of period	$	11.09

Income from investment operations:
Net investment gain (loss)		(0.05	)
Net realized and unrealized gains (losses) on securities		3.14
Total from investment operations		3.09

Less Distributions:
Dividends from net investment income		—
Dividends from net realized gains		—
Total distributions		—
Redemption fees retained(4)		—
Net asset value, end of period	$	14.18

TOTAL RETURN		27.86	%(5)

SUPPLEMENTAL DATA AND RATIOS:
Net assets, end of period (millions)	$	33.94
Ratio of expenses to average net assets		1.63	%(6)
Ratio of net investment income to average net assets		(0.83	)%(6)
Portfolio turnover rate(7)		0	%(5)

(1)	For the four months ended October 31, 2006. Effective October 31, 2006 the Fund changed its fiscal year end to October 31st from June 30th.

(2)	The financial highlights set forth herein include the historical highlights of The Henlopen Fund. On July 1, 2005 Hennessy Advisors, Inc. became the investment advisor to the Fund and the Fund changed its name from “The Henlopen Fund” to Hennessy Cornerstone Growth Fund, Series II.

(3)	Net investment loss per share is calculated using average shares outstanding.

(4)	Amount is less than $0.01.

(5)	Not Annualized.

(6)	Annualized.

(7)	Portfolio turnover is calculated on the basis of the Fund as a whole.

The accompanying notes are an integral part of these financial statements.

WWW.HENNESSYFUNDS.COM

FINANCIAL HIGHLIGHTS — HENNESSY CORNERSTONE GROWTH FUND, SERIES II

									Period Ended
Year Ended October 31,									October 31,			Year Ended June 30,
2009			2008			2007			2006(1)			2006			2005(2)

$	10.35		$	30.32		$	30.75		$	32.19		$	31.29		$	27.69


	(0.05	)		(0.09	)		(0.25	)		(0.03	)		(0.07	)(3)		(0.14	)(3)
	0.79			(13.75	)		1.02			(1.41	)		4.65			3.75
	0.74			(13.84	)		0.77			(1.44	)		4.58			3.61


	—			—			—			—			—			(0.01	)
	—			(6.13	)		(1.20	)		—			(3.68	)		—
	—			(6.13	)		(1.20	)		—			(3.68	)		(0.01	)
	—			—			—			—			—			—
$	11.09		$	10.35		$	30.32		$	30.75		$	32.19		$	31.29

	7.15	%		(55.79	)%		2.60	%		(4.47	)%(5)		16.48	%		13.04	%


$	29.81		$	36.27		$	138.58		$	244.19		$	279.30		$	299.00
	1.70	%		1.37	%		1.27	%		1.25	%(6)		1.25	%		1.33	%
	(0.43	)%		(0.40	)%		(0.59	)%		(0.24	)%(6)		(0.22	)%		(0.49	)%
	94	%		75	%		86	%		93	%(5)		109	%		192	%

HENNESSY FUNDS 1-800-966-4354

Financial Highlights

Hennessy Cornerstone Growth Fund, Series II

For an Institutional Class share outstanding throughout each period

	Six Months
	Ended
	April 30, 2010
	(Unaudited)
PER SHARE DATA:
Net asset value, beginning of period	$	11.21

Income from investment operations:
Net investment gain (loss)		(0.01	)
Net realized and unrealized gains (losses) on securities		3.18
Total from investment operations		3.17

Less Distributions:
Dividends from net investment income		—
Dividends from net realized gains		—
Total distributions		—
Redemption fees retained(2)		—
Net asset value, end of period	$	14.38

TOTAL RETURN		28.28	%(3)

SUPPLEMENTAL DATA AND RATIOS:
Net assets, end of period (millions)	$	0.31
Ratio of expenses to average net assets
Before expense reimbursement		1.43	%(4)
After expense reimbursement(5)		0.98	%(4)
Ratio of net investment income to average net assets
Before expense reimbursement		(0.64	)%(4)
After expense reimbursement(5)		(0.19	)%(4)
Portfolio turnover rate(6)		0	%(3)

(1)	Institutional Class shares commenced operations on March 3, 2008.

(2)	Amount is less than $0.01.

(3)	Not Annualized.

(4)	Annualized.

(5)	The Advisor has agreed to reimburse expenses in order to cap the Institutional Class share expenses. Please refer to Note 5 for more information.

(6)	Portfolio turnover is calculated on the basis of the Fund as a whole.

The accompanying notes are an integral part of these financial statements.

WWW.HENNESSYFUNDS.COM

FINANCIAL HIGHLIGHTS — HENNESSY CORNERSTONE GROWTH FUND, SERIES II


Year Ended			Period Ended
October 31,			October 31,
2009			2008(1)

$	10.39		$	19.17


	0.02			0.02
	0.80			(8.80	)
	0.82			(8.78	)


	—			—
	—			—
	—			—
	—			—
$	11.21		$	10.39

	7.89	%		(45.80	)%(3)


$	0.28		$	0.06

	1.46	%		1.22	%(4)
	0.98	%		0.98	%(4)

	(0.19	)%		0.17	%(4)
	0.29	%		0.41	%(4)
	94	%		75	%(3)

HENNESSY FUNDS 1-800-966-4354

Financial Highlights

Hennessy Focus 30 Fund

For an Original Class share outstanding throughout each period

	Six Months
	Ended
	April 30, 2010
	(Unaudited)
PER SHARE DATA:
Net asset value, beginning of period	$	8.73

Income from investment operations:
Net investment income (loss)		(0.01	)
Net realized and unrealized gains (losses) on investments		1.88
Total from investment operations		1.87

Less Distributions:
Dividends from net investment income		—
Dividends from net realized gains		—
Total distributions		—
Redemption fees retained		—	(1)
Net asset value, end of period	$	10.60

TOTAL RETURN		21.42	%(2)

SUPPLEMENTAL DATA AND RATIOS:
Net assets, end of period (millions)	$	127.91
Ratio of net expenses to average net assets:		1.39	%(3)
Ratio of net investment loss to average net assets:		(0.27	)%(3)
Portfolio turnover rate(4)		0	%(2)

(1)	Amount is less than $0.01.

(2)	Not Annualized.

(3)	Annualized.

(4)	Portfolio turnover is calculated on the basis of the Fund as a whole.

The accompanying notes are an integral part of these financial statements.

WWW.HENNESSYFUNDS.COM

FINANCIAL HIGHLIGHTS — HENNESSY FOCUS 30 FUND


Year Ended October 31,
2009			2008			2007			2006			2005
$	8.02		$	13.67		$	12.39		$	12.21		$	8.67

	(0.02	)		(0.06	)		(0.09	)		(0.08	)		(0.04	)
	0.73			(3.57	)		1.47			1.86			3.58
	0.71			(3.63	)		1.38			1.78			3.54

	—			—			—			—			—
	—			(2.02	)		(0.10	)		(1.61	)		—
	—			(2.02	)		(0.10	)		(1.61	)		—
	—	(1)		—	(1)		—	(1)		0.01			—	(1)
$	8.73		$	8.02		$	13.67		$	12.39		$	12.21
	8.85	%		(30.81	)%		11.30	%		16.18	%		40.83	%


$	128.36		$	167.32		$	233.37		$	240.63		$	125.31
	1.39	%		1.27	%		1.23	%		1.21	%		1.35	%
	(0.20	)%		(0.62	)%		(0.61	)%		(0.65	)%		(0.60	)%
	90	%		123	%		112	%		124	%		155	%

HENNESSY FUNDS 1-800-966-4354

Financial Highlights

Hennessy Focus 30 Fund

For an Institutional Class share outstanding throughout each period

	Six Months
	Ended
	April 30, 2010
	(Unaudited)
PER SHARE DATA:
Net asset value, beginning of period	$	8.78

Income from investment operations:
Net investment income (loss)		0.01
Net realized and unrealized gains (losses) on investments		1.89
Total from investment operations		1.90

Less Distributions:
Dividends from net investment income		—
Dividends from net realized gains		—
Total distributions		—
Redemption fees retained(2)		—
Net asset value, end of period	$	10.68

TOTAL RETURN		21.64	%(3)

SUPPLEMENTAL DATA AND RATIOS:
Net assets, end of period (millions)	$	22.29
Ratio of net expenses to average net assets:
Before expense reimbursement		1.15	%(4)
After expense reimbursement(5)		0.98	%(4)
Ratio of net investment loss to average net assets:
Before expense reimbursement		(0.01	)%(4)
After expense reimbursement(5)		0.16	%(4)
Portfolio turnover rate(6)		0	%(3)

(1)	Institutional Class shares commenced operations on March 3, 2008.

(2)	Amount is less than $0.01.

(3)	Not Annualized.

(4)	Annualized.

(5)	The Advisor has agreed to reimburse expenses in order to cap the Institutional Class share expenses. Please refer to Note 5 for more information.

(6)	Portfolio turnover is calculated on the basis of the Fund as a whole.

The accompanying notes are an integral part of these financial statements.

WWW.HENNESSYFUNDS.COM

FINANCIAL HIGHLIGHTS — HENNESSY FOCUS 30 FUND


Year Ended			Period Ended
October 31,			October 31,
2009			2008(1)

$	8.04		$	11.15


	0.02			(0.02	)
	0.72			(3.09	)
	0.74			(3.11	)


	—			—
	—			—
	—			—
	—			—
$	8.78		$	8.04

	9.20	%		(27.89	)%(3)


$	27.44		$	26.78

	1.15	%		1.13	%(4)
	0.98	%		0.98	%(4)

	0.04	%		(0.28	)%(4)
	0.21	%		(0.13	)%(4)
	90	%		123	%(3)

HENNESSY FUNDS 1-800-966-4354

Financial Highlights

Hennessy Cornerstone Large Growth Fund

For an Original Class share outstanding throughout each period

	Six Months Ended
	April 30, 2010
	(Unaudited)
PER SHARE DATA:
Net asset value, beginning of period	$	9.49

Income from investment operations:
Net investment income (loss)		0.05
Net realized and unrealized gains (losses) on securities		1.69
Total from investment operations		1.74

Less Distributions:
Dividends from net investment income		(0.05	)
Dividends from net realized gains		—
Total distributions		(0.05	)
Redemption fees retained(3)		—
Net asset value, end of period	$	11.18

TOTAL RETURN		18.37	%(5)

SUPPLEMENTAL DATA AND RATIOS:
Net assets, end of period (millions)	$	78.46
Ratio of expenses to average net assets:
Before expense reimbursement/recoupment		1.27	%(6)
After expense reimbursement/recoupment(7)		1.30	%(6)
Ratio of net investment income to average net assets
Before expense reimbursement/recoupment		1.03	%(6)
After expense reimbursement/recoupment(7)		1.00	%(6)
Portfolio turnover rate(8)		84	%(5)

(1)

For the one month period ended October 31, 2009. Effective October 31, 2009, the Fund changed its fiscal year end to October 31st from September 30th.

(2)

The financial highlights set forth for periods prior to March 23, 2009 represent the historical financial highlights of the Tamarack Large Cap Growth Fund, Class S shares. The assets of the Tamarack Large Cap Growth Fund were acquired by the Hennessy Cornerstone Large Growth Fund on March 23, 2009. At the time RBC Global Asset Management (U.S.), Inc. (formerly known as Voyageur Asset Management Inc.) ceased to be investment advisor and Hennessy Advisors, Inc. became investment advisor. The return of the Tamarack Large Cap Growth Fund, Class S shares during the period October 1, 2008 through March 23, 2009 was (33.30)%. The return of the Hennessy Cornerstone Large Growth Fund, Original Class shares during the period March 23, 2009 through September 30, 2009 was 42.64%.

(3)	Amount is less than $0.01 or ($0.01) per share.

(4)	Per share net investment income (loss) has been calculated using the average daily shares method.

(5)	Not annualized.

(6)	Annualized.

(7)	The Advisor had agreed to reimburse expenses in order to cap the Original Class share expenses. Please refer to Note 5 for more information.

(8)	Portfolio turnover is calculated on the basis of the Fund as a whole.

The accompanying notes are an integral part of these financial statements.

WWW.HENNESSYFUNDS.COM

FINANCIAL HIGHLIGHTS — HENNESSY CORNERSTONE LARGE GROWTH FUND

One Month
Ended
October 31,			Year Ended September 30,
2009(1)			2009(2)			2008			2007			2006			2005

$	9.60		$	10.09		$	12.61		$	10.98		$	10.75		$	9.97

	—			0.05			—	(3)(4)		—	(3)		—	(3)		0.02
	(0.11	)		(0.54	)		(2.52	)		1.63			0.23			0.78
	(0.11	)		(0.49	)		(2.52	)		1.63			0.23			0.80

	—			—			—			—			—	(3)		(0.02	)
	—			—			—			—			—			—
	—			—			—			—			—			(0.02	)
	—			—			—			—			—			—
$	9.49		$	9.60		$	10.09		$	12.61		$	10.98		$	10.75
	(1.15	)%(5)		(4.86	)%		(19.98	)%		14.85	%		2.18	%		8.04	%


$	69.41		$	70.61		$	80.91		$	113.15		$	125.25		$	145.65

	1.26	%(6)		1.40	%		1.16	%		1.18	%		1.18	%		1.25	%
	1.30	%(6)		1.17	%		0.98	%		1.00	%		1.00	%		0.91	%

	(0.01	)%(6)		0.36	%		(0.19	)%		(0.19	)%		(0.20	)%		(0.10	)%
	(0.05	)%(6)		0.59	%		(0.01	)%		(0.01	)%		(0.02	)%		0.24	%
	0	%(5)		116	%		38	%		25	%		35	%		28	%

HENNESSY FUNDS 1-800-966-4354

Financial Highlights

Hennessy Cornerstone Large Growth Fund

For an Institutional Class share outstanding throughout each period

	Six Months
	Ended
	April 30, 2010
	(Unaudited)
PER SHARE DATA:
Net asset value, beginning of period	$	9.51

Income from investment operations:
Net investment income		0.05
Net realized and unrealized gains (losses) on securities		1.71
Total from investment operations		1.76

Less Distributions:
Dividends from net investment income		(0.05	)
Dividends from net realized gains		—
Total distributions		(0.05	)
Redemption fees retained(3)		—
Net asset value, end of period	$	11.22

TOTAL RETURN		18.56	%(4)

SUPPLEMENTAL DATA AND RATIOS:
Net assets, end of period (millions)	$	0.06
Ratio of expenses to average net assets:
Before expense reimbursement		1.15	%(5)
After expense reimbursement(6)		0.98	%(5)
Ratio of net investment income to average net assets
Before expense reimbursement		1.01	%(5)
After expense reimbursement(6)		1.18	%(5)
Portfolio turnover rate(7)		84	%(4)

(1)	For the one month period ended October 31, 2009. Effective October 31, 2009, the Fund changed its fiscal year end to October 31st from September 30th.

(2)	Institutional Class shares commenced operations on March 23, 2009.

(3)	Amount is less than $0.01 per share.

(4)	Not annualized.

(5)	Annualized.

(6)	The Advisor has agreed to reimburse expenses in order to cap the Institutional Class share expenses. Please refer to Note 5 for more information.

(7)	Portfolio turnover is calculated on the basis of the Fund as a whole.

The accompanying notes are an integral part of these financial statements.

WWW.HENNESSYFUNDS.COM

FINANCIAL HIGHLIGHTS — HENNESSY CORNERSTONE LARGE GROWTH FUND

One Month
Ended			Period Ended
October 31,			September 30,
2009(1)			2009(2)

$	9.61		$	6.73


	—			0.03
	(0.10	)		2.85
	(0.10	)		2.88


	—			—
	—			—
	—			—
	—			—
$	9.51		$	9.61

	(1.04	)%(4)		42.79	%(4)


$	0.04		$	0.04

	1.14	%(5)		16.51	%(5)
	.98	%(5)		0.98	%(5)

	0.12	%(5)		(14.54	)%(5)
	0.28	%(5)		0.99	%(5)
	0	%(4)		116	%(4)

HENNESSY FUNDS 1-800-966-4354

Financial Highlights

Hennessy Cornerstone Value Fund

For an Original Class share outstanding throughout each period

	Six Months
	Ended
	April 30, 2010
	(Unaudited)
PER SHARE DATA:
Net asset value, beginning of period	$	10.63

Income from investment operations:
Net investment income (loss)		0.11
Net realized and unrealized gains (losses) on investments		1.46
Total from investment operations		1.57

Less Distributions:
Dividends from net investment income		(0.20	)
Dividends from net realized gains		—
Total distributions		(0.20	)
Redemption fees retained(1)		—
Net asset value, end of period	$	12.00

TOTAL RETURN		14.90	%(2)

SUPPLEMENTAL DATA AND RATIOS:
Net assets, end of period (millions)	$	162.63
Ratio of net expenses to average net assets		1.26	%(3)
Ratio of net investment income to average net assets		1.84	%(3)
Portfolio turnover rate(4)		76	%(2)

(1)	Amount is less than $0.01.

(2)	Not Annualized.

(3)	Annualized.

(4)	Portfolio turnover is calculated on the basis of the Fund as a whole.

The accompanying notes are an integral part of these financial statements.

WWW.HENNESSYFUNDS.COM

FINANCIAL HIGHLIGHTS — HENNESSY CORNERSTONE VALUE FUND


Year Ended October 31,
2009			2008			2007			2006			2005

$	9.05		$	17.06		$	15.27		$	12.95		$	12.48

	0.24			0.55			0.46			0.30			0.30
	1.87			(8.15	)		1.68			2.36			0.41
	2.11			(7.60	)		2.14			2.66			0.71

	(0.53	)		(0.41	)		(0.35	)		(0.34	)		(0.24	)
	—			—			—			—			—
	(0.53	)		(0.41	)		(0.35	)		(0.34	)		(0.24	)
	—			—			—			—			—
$	10.63		$	9.05		$	17.06		$	15.27		$	12.95

	25.51	%		(45.50	)%		14.26	%		21.00	%		5.69	%


$	145.91		$	97.10		$	204.50		$	256.80		$	183.76
	1.27	%		1.20	%		1.17	%		1.15	%		1.20	%
	3.19	%		3.92	%		2.64	%		2.49	%		2.19	%
	59	%		53	%		40	%		35	%		32	%

HENNESSY FUNDS 1-800-966-4354

Financial Highlights

Hennessy Cornerstone Value Fund

For an Institutional Class share outstanding throughout each period

	Six Months
	Ended
	April 30, 2010
	(Unaudited)
PER SHARE DATA:
Net asset value, beginning of period	$	10.63

Income from investment operations:
Net investment income (loss)		0.12
Net realized and unrealized gains (losses) on investments		1.47
Total from investment operations		1.59

Less Distributions:
Dividends from net investment income		(0.22	)
Dividends from net realized gains		—
Total distributions		(0.22	)
Redemption fees retained(2)		—
Net asset value, end of period	$	12.00

TOTAL RETURN		15.13	%(3)

SUPPLEMENTAL DATA AND RATIOS:
Net assets, end of period (millions)	$	1.27
Ratio of net expenses to average net assets
Before expense reimbursement		1.09	%(4)
After expense reimbursement(5)		0.98	%(4)
Ratio of net investment income to average net assets
Before expense reimbursement		2.01	%(4)
After expense reimbursement(5)		2.11	%(4)
Portfolio turnover rate(6)		76	%(3)

(1)	Institutional Class shares commenced operations on March 3, 2008.

(2)	Amount is less than $0.01.

(3)	Not Annualized.

(4)	Annualized.

(5)	The Advisor has agreed to reimburse expenses in order to cap the Institutional Class share expenses. Please refer to Note 5 for more information.

(6)	Portfolio turnover is calculated on the basis of the Fund as a whole.

The accompanying notes are an integral part of these financial statements.

WWW.HENNESSYFUNDS.COM

FINANCIAL HIGHLIGHTS — HENNESSY CORNERSTONE VALUE FUND



Year Ended			Period Ended
October 31,			October 31,
2009			2008(1)

$	9.06		$	13.79


	0.30			0.34
	1.83			(5.07	)
	2.13			(4.73	)


	(0.56	)		—
	—			—
	(0.56	)		—
	—			—
$	10.63		$	9.06

	25.87	%		(34.30	)%(3)


$	1.11		$	0.87

	1.13	%		1.14	%(4)
	0.98	%		0.98	%(4)

	3.33	%		4.94	%(4)
	3.48	%		5.10	%(4)
	59	%		53	%(3)

HENNESSY FUNDS 1-800-966-4354

Financial Highlights

Hennessy Total Return Fund

For an Original Class share outstanding throughout each period

	Six Months
	Ended
	April 30, 2010
	(Unaudited)
PER SHARE DATA:
Net asset value, beginning of period	$	9.10

Income from investment operations:
Net investment income		0.08
Net realized and unrealized gains (losses) on securities		0.99
Total from investment operations		1.07

Less Distributions:
Dividends from net investment income		(0.11	)
Dividends from realized capital gains		—
Total distributions		(0.11	)
Redemption fees retained(1)		—
Net asset value, end of period	$	10.06

TOTAL RETURN		11.78	%(2)

SUPPLEMENTAL DATA AND RATIOS:
Net assets, end of period (millions)	$	54.59
Gross ratio of expenses, including interest expense, to average net asset:		1.31	%(3)
Ratio of interest expense to average net assets		0.06	%(3)
Net ratio of expenses, excluding interest expense, to average net assets:		1.25	%(3)
Ratio of net investment income (loss) to average net assets:		1.63	%(3)
Portfolio turnover rate		17	%(2)

(1)	Amount is less than $0.01.

(2)	Not Annualized.

(3)	Annualized.

The accompanying notes are an integral part of these financial statements.

WWW.HENNESSYFUNDS.COM

FINANCIAL HIGHLIGHTS — HENNESSY TOTAL RETURN FUND



Year Ended October 31,
2009			2008			2007			2006			2005

$	9.22		$	13.73		$	12.61		$	10.57		$	10.40

	0.18			0.28			0.33			0.31			0.23
	(0.14	)		(4.49	)		1.13			2.03			0.17
	0.04			(4.21	)		1.46			2.34			0.40

	(0.16	)		(0.30	)		(0.34	)		(0.30	)		(0.23	)
	—			—			—			—			—
	(0.16	)		(0.30	)		(0.34	)		(0.30	)		(0.23	)
	—			—			—			—			—
$	9.10		$	9.22		$	13.73		$	12.61		$	10.57

	0.69	%		(30.97	)%		11.70	%		22.48	%		3.83	%


$	52.38		$	58.22		$	96.31		$	113.26		$	86.75
	1.56	%		2.36	%		3.04	%		2.80	%		2.28	%
	0.29	%		1.16	%		1.88	%		1.64	%		1.05	%
	1.27	%		1.20	%		1.16	%		1.16	%		1.23	%
	2.12	%		2.43	%		2.48	%		2.79	%		2.07	%
	41	%		16	%		12	%		24	%		26	%

HENNESSY FUNDS 1-800-966-4354

Financial Highlights

Hennessy Balanced Fund

For an Original Class share outstanding throughout each period

	Six Months
	Ended
	April 30, 2010
	(Unaudited)
PER SHARE DATA:
Net asset value, beginning of period	$	9.48

Income from investment operations:
Net investment income		0.01
Net realized and unrealized gains (losses) on securities		0.57
Total from investment operations		0.58

Less Distributions:
Dividends from net investment income		(0.01	)
Dividends from realized capital gains		—
Total distributions		(0.01	)
Redemption fees retained(1)		—
Net asset value, end of period	$	10.05

TOTAL RETURN		6.15	%(2)

SUPPLEMENTAL DATA AND RATIOS:
Net assets, end of period (millions)	$	12.32
Ratio of net expenses to average net assets		1.65	%(3)
Ratio of net investment income to average net assets		0.25	%(3)
Portfolio turnover rate		53	%(2)

(1)	Amount is less than $0.01.

(2)	Not Annualized.

(3)	Annualized.

The accompanying notes are an integral part of these financial statements.

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FINANCIAL HIGHLIGHTS — HENNESSY BALANCED FUND


Year Ended October 31,
2009			2008			2007			2006			2005

$	9.11		$	12.51		$	11.83		$	10.56		$	10.62

	0.10			0.25			0.38			0.30			0.18
	0.38			(2.80	)		0.69			1.25			(0.07	)
	0.48			(2.55	)		1.07			1.55			0.11

	(0.11	)		(0.26	)		(0.39	)		(0.28	)		(0.17	)
	—			(0.59	)		—			—			—
	(0.11	)		(0.85	)		(0.39	)		(0.28	)		(0.17	)
	—			—			—			—			—
$	9.48		$	9.11		$	12.51		$	11.83		$	10.56

	5.46	%		(21.55	)%		9.16	%		14.92	%		1.13	%


$	11.47		$	11.46		$	16.82		$	26.14		$	19.27
	1.73	%		1.56	%		1.36	%		1.34	%		1.49	%
	1.17	%		2.31	%		2.86	%		2.75	%		1.58	%
	46	%		13	%		35	%		88	%		21	%

HENNESSY FUNDS 1-800-966-4354

Statement of Cash Flows

Hennessy Total Return Fund For the Six Months Ended April 30, 2010 (Unaudited)

Cash Flows From Operating Activities:

Net decrease in net assets from operations	$	6,032,064
Adjustments to reconcile net decrease in net assets from
operations to net cash provided by operating activities:
Purchase of investment securities		(88,516,376	)
Proceeds on sale of securities		89,574,697
Decrease in receivable for securities sold		3,506,069
Decrease in other receivables, net		25,025
Decrease in other assets		1,339
Decrease in payable for securities purchased		(3,009,279	)
Decrease in accrued expenses and other payables		(1,257	)
Net accretion of discount on securities		(11,974	)
Net realized gain on investments		(3,667,571	)
Unrealized appreciation on securities		(1,926,383	)
Net cash provided by operating activities	$	2,006,354

Cash Flows From Financing Activities:

Increase in reverse repurchase agreements	$	1,811,000
Proceeds on shares sold		1,284,159
Payment on shares repurchased		(5,054,617	)
Cash dividends paid		(46,896	)
Net cash used by financing activities	$	(2,006,354	)
Net increase (decrease) in cash		—

Cash at beginning of period		—
Cash at end of period	$	—

Cash paid for interest	$	22,650

The accompanying notes are an integral part of these financial statements.

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NOTES TO THE FINANCIAL STATEMENTS

Notes to the Financial Statements

April 30, 2010 (Unaudited)

1). ORGANIZATION

The Hennessy Mutual Funds, Inc. was organized as a Maryland corporation on May 20, 1996 and consists of three separate series: Hennessy Cornerstone Growth Fund (the “Growth Fund”), Hennessy Cornerstone Value Fund (the “Value Fund”) and the Hennessy Focus 30 Fund (the “Focus 30 Fund”), formerly SYM Select Growth Fund. These Funds are open-end, diversified management investment companies registered under the Investment Company Act of 1940, as amended. The Growth Fund and Value Fund commenced operations on November 1, 1996. On September 17, 2003, Hennessy Advisors, Inc. became the investment advisor to the SYM Select Growth Fund and the Fund changed its name to the Hennessy Focus 30 Fund.

The Hennessy Funds, Inc. was organized as a Maryland corporation on January 11, 1996 and consists of two separate series: Hennessy Balanced Fund (the “Balanced Fund”) and Hennessy Total Return Fund (the “Total Return Fund”). The Balanced and Total Return Funds are open-end, non-diversified management investment companies registered under the Investment Company Act of 1940, as amended. The Balanced Fund and Total Return Fund commenced operations on March 8, 1996 and July 29, 1998, respectively.

The Hennessy Funds Trust (the “Trust”) was organized as a Delaware Statutory Trust on September 17, 1992 and consists of three series: Hennessy Cornerstone Growth Fund, Series II (the “Growth II Fund”), Hennessy Select Large Value Fund and Hennessy Large Growth Fund (the “Large Growth Fund”). The financial results of the Hennessy Select Large Value Fund are not contained in this report. Prior to July 1, 2005, both the Trust and the Growth II Fund were known as The Henlopen Fund. On July 1, 2005, Hennessy Advisors, Inc., became the investment advisor to the Growth II Fund and the Growth II Fund changed its name from “The Henlopen Fund” to “Hennessy Cornerstone Growth Fund, Series II”. On M arch 23, 2009, Hennessy Advisors, Inc., became the investment advisor to the Large Growth Fund and the Large Growth Fund changed its name from “Tamarack Large Cap Growth Fund” to “Hennessy Cornerstone Large Growth Fund”. The Growth II and Large Growth Funds are open-end, diversified investment management companies registered under the Investment Company Act of 1940, as amended.

The Growth Fund, Growth II Fund, Focus 30 Fund, Large Growth Fund, Value Fund, Total Return Fund and Balanced Fund collectively represent the Hennessy Cornerstone Series Funds (the “Funds”).

The Growth, Growth II, Focus 30, Large Growth and Value Funds offer Original and Institutional Class shares. Each class of shares differs principally in its respective administration, shareholder servicing and sub-transfer agent expenses and sales charges, if any. Each class has identical rights to earnings, assets and voting privileges, except for class-specific expenses and exclusive rights to vote on matters affecting only individual classes. The Total Return and Balanced Funds offer Original Class shares only.

HENNESSY FUNDS 1-800-966-4354

2). SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of significant accounting policies consistently followed by the Funds in the preparation of the financial statements. These policies are in conformity with U.S. generally accepted accounting principles (“GAAP”).

a).

Investment Valuation – Securities which are traded on a national or recognized stock exchange are valued at the last sale price on the securities exchange on which such securities are primarily traded. Exchange-traded securities for which there were no transactions that day and debt securities are valued at the most recent bid prices. Instruments with a remaining maturity of 60 days or less are valued on an amortized cost basis. When a price for an underlying security is not readily available or if a significant event has occurred that indicates the closing price of a security no longer represents the true value of that security, fair value pricing procedures have been adopted by the Board of Directors of the Funds. Fair value pricing determinations are made in good faith in accordance with these procedures. There are num erous criteria that will be given consideration in determining a fair value of a security. Some of these criteria are: trading volume of security and markets, value of other like securities and news events with direct bearing to security or market. Fair value pricing results in an estimated price that reasonably reflects the current market conditions in order to rate the portfolio holdings such that shareholder transactions receive a fair net asset value.

b).

Federal Income Taxes – Provision for federal income taxes or excise taxes has not been made since the Funds have elected to be taxed as “regulated investment companies” and intend to distribute substantially all taxable income to shareholders and otherwise comply with the provisions of the Internal Revenue Code applicable to regulated investment companies. Net investment income and realized gains and losses for federal income tax purposes may differ from that reported on the financial statements because of temporary book and tax basis differences. Temporary differences are primarily the result of the treatment of wash sales for tax reporting purposes. Distributions from net realized gains for book purposes may include short-term capital gains, which are included as ordinary income to shareholders for tax purposes.

Due to inherent differences in the recognition of income, expenses, and realized gains/losses under U.S. generally accepted accounting principles and federal income tax purposes, permanent differences between book and tax basis reporting for the 2009 fiscal year have been identified and appropriately reclassified on the Statement of Assets and Liabilities.

		Accumulated Net			Accumulated Net			Paid In
	��	Investment Income/(Loss)			Realized Gain/(Loss)			Capital
Growth Fund			1,059,159			369,963			(1,429,122	)
Growth II Fund			130,836			(84	)		(130,752	)
Focus 30 Fund			225,481			8			(225,489	)
Large Growth Fund			3,301			2,915,217			(2,918,518	)
Value Fund			(112,103	)		112,103			—
Total Return Fund			—			34,658,579			(34,658,579	)
Balanced Fund			1,555			446,409			(447,964	)

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NOTES TO THE FINANCIAL STATEMENTS

The permanent differences primarily relate to net operating losses and capital loss carryovers lost due to expiration.

c).

Income and Expenses – Dividend income is recognized on the ex-dividend date or as soon as information is available to the Funds and interest income is recognized on an accrual basis. Income, expenses (other than expenses attributable to a specific class), and realized and unrealized gains or losses on investments are allocated to each class of shares based on its respective net assets.

d).

Distributions to Shareholders – Dividends from net investment income for the Growth, Growth II, Focus 30, Large Growth and Value Funds, if any, are declared and paid out annually, usually in November or December of each year. Dividends from net investment income for the Total Return and Balanced Funds are declared and paid on a calendar quarter basis. Distributions of net realized capital gains, if any, are declared and paid annually, usually in November or December of each year, for all of the Funds.

e).

Security Transactions – Investment and shareholder transactions are recorded on the trade date. The Funds determine the gain or loss realized from the investment transactions by comparing the original cost of the security lot sold with the net sale proceeds. Discounts and premiums on securities purchased are accreted/amortized over the life of the respective security.

f).

Use of Estimates – The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported change in net assets during the reporting period. Actual results could differ from those estimates.

g).

Share Valuation – The net asset value (“NAV”) per share of each Fund is calculated by dividing the sum of the value of the securities held by each Fund, plus cash or other assets, minus all liabilities (including estimated accrued expenses) by the total number of shares outstanding for each Fund, rounded to the nearest cent. The Funds’ shares will not be priced on the days on which the NYSE is closed for trading. The offering and redemption price per share for each Fund is equal to each Fund’s net asset value per share. The Funds charged a 1.50% redemption fee on shares held less than 90 days through August 29, 2008. These fees were deducted from the redemption proceeds otherwise payable to the shareholder. These fees were retained by each Fund and treated as additional paid-in capital and allocated to each r espective class of shares (if applicable).

h).

Repurchase Agreements – Each Fund may enter into repurchase agreements with member banks or security dealers of the Federal Reserve whom the investment advisor deems creditworthy. The repurchase price generally equals the price paid by the Fund plus interest negotiated on the basis of current short-term rates.

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counterparty. If the counterparty defaults and the value of the collateral declines or if the counterparty enters an insolvency proceeding, realization of the collateral by the Fund may be delayed or limited.

i).

Accounting for Uncertainty in Income Taxes – The Funds have adopted accounting policies regarding recognition and measurement of tax positions taken or expected to be taken on a tax return. The Funds have reviewed all open tax years and major jurisdictions and concluded that there is no impact on the Funds’ net assets and no tax liability resulting from unrecognized tax benefits relating to uncertain income tax positions taken or expected to be taken on a tax return. As of April 30, 2010, open Federal and state tax years for the Large Growth Fund include the tax years ended September 30, 2006 through 2009 and the tax period ended October 31, 2009. As of April 30, 2010, open Federal and state tax years for the Growth, Growth II, Focus, Value, Total Return and Balanced Fund include the tax years ended October 31, 2006 through 2009.

j).

Derivatives – The Funds have adopted the financial accounting reporting rules as required by the Derivatives and Hedging Topic of the FASB Accounting Standards Codification (“FASB ASC”). The Funds are required to include enhanced disclosure that enables investors to understand how and why an entity uses derivatives, how derivatives are accounted for, and how derivatives instruments affect an entity’s results of operations and financial position. During the six months ended April 30, 2010, the Funds did not hold any derivative instruments.

k).

Events Subsequent to the Fiscal Period End – The Funds have adopted financial reporting rules regarding subsequent events which requires an entity to recognize in the financial statements the effects of all subsequent events that provide additional evidence about conditions that existed at the date of the balance sheet. Management has evaluated the Funds’ related events and transactions that occurred subsequent to April 30, 2010, through the date of issuance of the Funds’ financial statements. There were no events or transactions that occurred during this period that materially impacted the amounts or disclosures in the Fund’s financial statements.

l).

New Accounting Pronouncement – In January 2010, FASB issued Accounting Standards Update (“ASU”) No. 2010-06 “Improving Disclosures about Fair Value Measurements”. ASU 2010-06 amends FASB Accounting Standards Codification Topic 820, Fair Value Measurements and Disclosures, to require additional disclosures regarding fair value measurements. Certain disclosures required by ASU No. 2010-06 are effective for interim and annual reporting periods beginning after December 15, 2009, and other required disclosures are effective for fiscal years beginning after December 15, 2010, and for interim periods within those fiscal years. Management is currently evaluating the impact ASU No. 2010-06 will have on the Funds’ statement disclosures.

3). REVERSE REPURCHASE AGREEMENTS

The Total Return Fund has entered into reverse repurchase agreements with UBS Financial Services, Inc., under which the Total Return Fund sells securities and agrees to repurchase them later at a mutually agreed upon price. For the six months ended April 30, 2010, the average daily balance and average interest rate

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NOTES TO THE FINANCIAL STATEMENTS

in effect for reverse repurchase agreements was $13,309,000 and 0.24%, respectively. At April 30, 2010, the interest rate in effect for the outstanding reverse repurchase agreements, scheduled to mature on June 10, 2010 ($16,191,000) was 0.25%. Outstanding reverse repurchase agreements at April 30, 2010 were equal to 29.65% of the Total Return Fund’s total net assets.

4). INVESTMENT TRANSACTIONS

Purchases and sales of investment securities (excluding government and short-term investments) during the six months ended April 30, 2010 were as follows:

	Growth	Growth II	Focus 30	Large Growth	Value	Total Return	Balanced
	Fund	Fund	Fund	Fund	Fund	Fund	Fund
Purchases	$220,978,109	$ —	$ —	$59,719,722	$115,610,591	$6,781,792	$3,249,191
Sales	$252,398,220	$3,302,782	$35,525,420	$61,772,183	$119,163,671	$10,354,080	$3,356,749

Purchases and sales of long-term U.S. Government Securities for the Balanced Fund were $3,400,505 and $0, respectively. There were no purchases or sales of long-term U.S. Government Securities for the Growth, Growth II, Focus 30, Large Growth, Value, or Total Return Funds.

5). INVESTMENT MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES

Hennessy Advisors, Inc. (the “Advisor”) is the Advisor of the Funds. The Advisor provides the Funds with investment management services under a Management Agreement. The Advisor furnishes all investment advice, office space, facilities, and provides most of the personnel needed by the Funds. As compensation for its services, the Advisor is entitled to a monthly fee from each Fund. The fee is based upon the average daily net assets of the Funds at the annual rate of:

	Growth Fund	0.74%
	Growth II Fund	0.74%
	Focus 30 Fund	0.74%
	Large Growth Fund	0.74%
	Value Fund	0.74%
	Total Return Fund	0.60%
	Balanced Fund	0.60%

The Advisor has agreed to waive its fees and absorb expenses to the extent that the total annual operating expenses (excluding all federal, state and local taxes, interest, brokerage commissions, acquired fund fees and expenses and other costs incurred in connection with the purchase and sale of securities and extraordinary items) do not exceed 0.98% of the Funds’ net assets for the Institutional Class shares in the Growth, Growth II, Focus 30, Large Growth and Value Funds or 1.30% of the Original Class shares of the Large Growth Fund. The expense limitation agreement for the Original Class shares of the Large Growth Fund expired on March 31, 2010. The expense limitation agreement for the Institutional Class shares can only be terminated by the Board of Directors /Trustees. For a period of three years after the year in which the Advisor waives or reimburses expenses, the Advisor may seek reimbursement from the Funds to the extent that total annual Fund operating expenses are less than the expense limitation in effect at the time of the reimbursement. The Advisor reimbursed Institutional Class expenses of $273 for the Growth II for the six months ended April 30, 2010.

HENNESSY FUNDS 1-800-966-4354

The Advisor recouped $10,544 of previously reimbursed Original Class expenses for the Large Growth Fund for the six months ended April 30, 2010.

As of April 30, 2010, cumulative expenses subject to potential recovery to the aforementioned conditions and year of expiration are as follows:

	Oct. 31, 2011	Oct. 31, 2012	Oct. 31, 2013	Total
Growth Fund – Institutional Class	$ 7,464	$ 6,062	$ —	$13,526
Growth II Fund – Institutional Class	$ 137	$ 706	$273	$ 1,116
Focus 30 Fund – Institutional Class	$35,499	$43,673	$ —	$79,172
Large Growth Fund – Original Class	$27,779	$ —	$ —	$27,779
Large Growth Fund – Institutional Class	$ 2,051	$ 5	$ —	$ 2,056
Value Fund – Institutional Class	$ 1,056	$ 1,298	$ —	$ 2,354

The Board of Directors/Trustees has approved a Shareholder Servicing Plan for the Original Class shares of the Growth, Growth II, Focus 30, Large Growth, Value, Total Return and Balanced Funds which was instituted to compensate the Advisor for the non-investment management services it provides to the Funds. The Plan provides for a monthly fee paid to the Advisor at an annual rate of 0.10% of the average daily net assets of the Funds.

The Growth Fund, Growth II Fund, Focus 30 Fund, Large Growth and Value Fund have entered into agreements with various brokers, dealers and financial intermediaries in connection with the sale of shares of the Funds. The agreements provide for periodic payments by the Funds to the brokers, dealers and financial intermediaries for providing certain shareholder maintenance services (sub-transfer agent expenses). These shareholder services include: the pre-processing and quality control of new accounts, shareholder correspondence, answering customer inquiries regarding account status and facilitating shareholder telephone transactions. Fees paid by the Growth Fund, Growth II Fund, Focus 30 Fund, Large Growth and Value Fund to various brokers, dealers and financi al intermediaries for the six months ended April 30, 2010, were $180,482, $28,930, $130,361, $7,424 and $65,541, respectively.

The Total Return and Balanced Funds have adopted a plan pursuant to Rule 12b-1 which authorizes payments in connection with the distribution of the Total Return and Balanced Fund shares at an annual rate not to exceed 0.15% of each Fund’s average daily net assets. Amounts paid under the Plan may be spent on any activities or expenses primarily intended to result in the sale of shares, including but not limited to, advertising, compensation for sales and marketing activities or financial institutions and others such as dealers and distributors, shareholder account servicing, the printing and mailing of prospectuses to other than current shareowners and the printing and mailing of sales literature.

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NOTES TO THE FINANCIAL STATEMENTS

six months ended April 30, 2010, were $301,676, $40,364, $195,237, $94,713, $200,599, $68,586 and $15,523 for Growth, Growth II, Focus 30, Large Growth, Value, Total Return and Balanced Funds, respectively. The Administrator has voluntarily waived all or a portion of its administration fees allocated to the Institutional Class shares of the Growth Fund, Growth II Fund, Focus 30 Fund, Large Growth and Value Fund. The administration fees voluntarily waived by the Administrator during the six months ended April 30, 2010 were $2,467, $355, $22,247, $42, and $652, respectively.

Quasar Distributors, LLC (the “Distributor”) acts as the Funds’ principal underwriter in a continuous public offering of the Funds’ shares. The Distributor is an affiliated company of U.S. Bank, N.A.

6). LINE OF CREDIT

The Growth, Growth II, Focus 30, and Value Funds have $40,000,000, $1,500,000, $25,000,000 and $10,000,000 lines of credit, respectively, intended to provide short-term financing, if necessary, subject to certain restrictions, in connection with shareholder redemptions. The credit facility is with its custodian bank, U.S. Bank, N.A. During the six months ended April 30, 2010, the Focus 30 Fund had an outstanding average daily balance and a weighted average interest rate of $53,923 and 3.25%, respectively. The maximum amount outstanding for the Focus 30 Fund during the period was $3,419,000. During the six months ended April 30, 2010, the Value Fund had an outstanding average daily balance and a weighted average interest rate of $10,414 and 3.25%, respectively. The maximum amount outstanding for the Value Fund during the period was $1,413,000. During the six months ended April 30, 2010, the Growth and Growth II Fund had no line of credit activity.

7). FEDERAL TAX INFORMATION

As of October 31, 2009, the components of accumulated earnings (losses) for income tax purposes were as follows:

	Growth			Growth II			Focus 30
	Fund			Fund			Fund
Cost of investments for tax purposes	$	224,061,528		$	27,673,681		$	156,197,343
Gross tax unrealized appreciation		24,112,218			4,292,546			5,600,584
Gross tax unrealized depreciation		(19,864,261	)		(1,794,420	)		(5,659,121	)
Net tax unrealized
appreciation (depreciation)		4,247,957			2,498,126			(58,537	)
Undistributed ordinary income	$	—		$	—		$	—
Undistributed long-term capital gains	$	—		$	—		$	—
Total distributable earnings	$	—		$	—		$	—
Other accumulated gains/(loss)	$	(292,454,322	)	$	(61,399,808	)	$	(89,114,703	)
Total accumulated earnings/(loss)	$	(288,206,365	)	$	(58,901,682	)	$	(89,173,240	)

HENNESSY FUNDS 1-800-966-4354

	Large						Total
	Growth			Value			Return			Balanced
	Fund			Fund			Fund			Fund
Cost of investments
for tax purposes	$	53,957,008		$	134,897,164		$	67,023,216		$	11,355,997
Gross tax
unrealized appreciation		16,656,370			27,487,624			4,107,674			1,367,882
Gross tax
unrealized depreciation		(1,137,512	)		(15,673,257	)		(4,863,918	)		(849,113	)
Net tax unrealized
appreciation (depreciation)		15,518,858			11,814,367			(756,244	)		518,769
Undistributed ordinary income	$	358,421		$	2,322,929		$	86,870		$	4,907
Undistributed long-term
capital gains	$	—		$	—		$	—		$	—
Total distributable earnings	$	358,421		$	2,322,929		$	86,870		$	4,907
Other accumulated gains/(loss)	$	(21,442,496	)	$	(85,002,113	)	$	(18,972,802	)	$	(3,507,494	)
Total accumulated
earnings/(loss)	$	(5,565,217	)	$	(70,864,817	)	$	(19,642,176	)	$	(2,983,818	)

The difference between book-basis and tax-basis unrealized appreciation is attributable primarily to wash sales and partnership adjustments.

At October 31, 2009, the Growth Fund had tax basis capital losses of $292,454,322, to offset future capital gains, the use of a portion of which is limited by IRS regulations. Of such losses, $182,559 expire October 31, 2010, $115,170,412 expire October 31, 2016, and $177,101,351 expire October 31, 2017. Additionally, the Growth Fund had no post-October loss deferrals as of October 31, 2009.

At October 31, 2009, the Growth II Fund had tax basis capital losses of $61,399,808, to offset future capital gains, the use of a portion of which is limited by IRS regulations. Of such losses, $36,286,123 expire October 31, 2016 and $25,113,685 expire October 31, 2017. Additionally, the Growth II Fund had no post-October loss deferrals as of October 31, 2009.

At October 31, 2009, the Focus 30 Fund had tax basis capital losses of $89,114,703, to offset future capital gains, the use of a portion of which is limited by IRS regulations. Of such losses, $47,979,565 expire October 31, 2016 and $41,135,138 expire October 31, 2017. Additionally, the Focus 30 Fund had no post-October loss deferrals as of October 31, 2009.

At October 31, 2009, the Large Growth Fund had tax basis capital losses of $21,442,496, to offset future capital gains, the use of a portion of which is limited by IRS regulations. Of such losses, $612,261 expire October 31, 2015, $2,573,644 expire October 31, 2016 and $18,256,591 expire October 31, 2017. Additionally, the Large Growth Fund had no post-October loss deferrals as of October 31, 2009.

At October 31, 2009, the Value Fund had tax basis capital losses of $85,002,113, to offset future capital gains, the use of a portion of which is limited by IRS regulations. Of such losses, $27,482,264 expire October 31, 2010

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NOTES TO THE FINANCIAL STATEMENTS

and $712,595 expire October 31, 2011 and $56,807,254 expire on October 31, 2017. Additionally, the Value Fund had no post-October loss deferrals as of October 31, 2009.

At October 31, 2009, the Total Return Fund had tax basis capital losses of $18,972,802, which may be carried over to offset future capital gains. Of such $18,972,802 expire October 31, 2017. Additionally, the Total Return Fund had no post-October loss deferrals as of October 31, 2009.

At October 31, 2009, the Balanced Fund had tax basis capital losses of $3,507,494, to offset future capital gains, the use of a portion of which is limited by IRS regulations. Of such losses, $447,964 expire October 31, 2010, $119,027 expire October 31, 2016 and $2,940,503 expire October 31, 2017. Additionally, the Balanced Fund had no post-October loss deferrals as of October 31, 2009.

The tax character of distributions paid during 2010 and 2009 for the Funds were as follows:

	Six Months Ended
	April 30, 2010		Year Ended
Growth Fund	(Unaudited)		October 31, 2009
Ordinary income	$	—	$	—
Long-term capital gain		—		—
	$	—	$	—

	Six Months Ended
	April 30, 2010		Year Ended
Growth II Fund	(Unaudited)		October 31, 2009
Ordinary income	$	—	$	—
Long-term capital gain		—		—
	$	—	$	—

	Six Months Ended
	April 30, 2010		Year Ended
Focus 30 Fund	(Unaudited)		October 31, 2009
Ordinary income	$	—	$	—
Long-term capital gain		—		—
	$	—	$	—

	Six Months Ended
	April 30, 2010		One Month Ended		Year Ended
Large Growth Fund	(Unaudited)		October 31, 2009		September 30, 2009
Ordinary income	$	358,421	$	—	$	—
Long-term capital gain		—		—		—
	$	358,421	$	—	$	—

	Six Months Ended
	April 30, 2010		Year Ended
Value Fund	(Unaudited)		October 31, 2009
Ordinary income	$	2,758,219	$	5,652,451
Long-term capital gain		—		—
	$	2,758,219	$	5,652,451

HENNESSY FUNDS 1-800-966-4354

	Six Months Ended
	April 30, 2010		Year Ended
Total Return Fund	(Unaudited)		October 31, 2009
Ordinary income	$	601,289	$	956,356
Long-term capital gain		—		—
	$	601,289	$	956,356

	Six Months Ended
	April 30, 2010		Year Ended
Balanced Fund	(Unaudited)		October 31, 2009
Ordinary income	$	15,813	$	138,030
Long-term capital gain		—		—
	$	15,813	$	138,030

8). FUND REORGANIZATION

On March 23, 2009 the shareholders of the Tamarack Large Cap Growth Fund approved the agreement and plan of reorganization providing for the transfer of assets of the Tamarack Large Cap Growth Fund to the Hennessy Cornerstone Large Growth Fund and the assumption of the liabilities of the Tamarack Large Cap Growth Fund by the Hennessy Cornerstone Large Growth Fund. The following table illustrates the specifics of the reorganization:

	Shares issued to
Acquired Fund	Shareholders of	Acquiring Fund	Combined	Tax Status
Net Assets	Acquired Fund	Net Assets	Net Assets	of Transfer
$51,980,253(1)	7,722,854	—	$51,980,253	Non-taxable

(1)

Includes accumulated realized losses and unrealized depreciation in the amounts of ($13,369,709) and ($16,139,531) respectively.

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EXPENSE EXAMPLE

Expense Example

April 30, 2010 (Unaudited)

As a shareholder of the Funds, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, reinvested dividends, or other distributions; redemption fees; and exchange fees; and (2) ongoing costs, including management fees; service fees; and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in each of the Funds and to compare these costs with the ongoing costs of investing in other mutual funds. The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from November 1, 2009 through April 30, 2010.

Actual Expenses

The first set of lines of the table below provide information about actual account values and actual expenses. Although the Funds charge no sales loads or transaction fees, you will be assessed fees for outgoing wire transfers, returned checks and stop payment orders at prevailing rates charged by U.S. Bancorp Fund Services, LLC, the Funds’ transfer agent. If you request that a redemption be made by wire transfer, currently a $15.00 fee is charged by the Funds’ transfer agent. IRA accounts will be charged a $15.00 annual maintenance fee (not to exceed $30 per social security number). The example below includes, but is not limited to, management fees, shareholder servicing fees, fund accounting, custody and transfer agent fees. However, the example below does not include portfolio trading commissions and r elated expenses, interest expense or dividends on short positions taken by the Fund and other extraordinary expenses as determined under generally accepted accounting principles. You may use the information within these lines, together with the amount you invested, to estimate the expenses that you paid over the six-month period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second set of lines within the table below provide information about hypothetical account values and hypothetical expenses based on the Funds’ actual expense ratios and an assumed rate of return of 5% per year before expenses, which is not the Funds’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), o r exchange fees. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

HENNESSY FUNDS 1-800-966-4354

	Beginning	Ending	Expenses Paid
	Account Value	Account Value	During Period(1)
Original Class	11/1/09	4/30/10	11/1/09 - 4/30/10

Actual
Growth Fund – Original Class	$1,000.00	$1,203.20	$7.32
Growth II Fund – Original Class	$1,000.00	$1,278.60	$9.21
Focus 30 Fund – Original Class	$1,000.00	$1,214.20	$7.63
Large Growth Fund – Original Class	$1,000.00	$1,183.70	$7.04
Value Fund – Original Class	$1,000.00	$1,149.00	$6.71
Total Return Fund – Original Class	$1,000.00	$1,117.80	$6.88
Balanced Fund – Original Class	$1,000.00	$1,061.50	$8.43

Hypothetical (5% return
before expenses)
Growth Fund – Original Class	$1,000.00	$1,018.15	$6.71
Growth II Fund – Original Class	$1,000.00	$1,016.71	$8.15
Focus 30 Fund – Original Class	$1,000.00	$1,017.90	$6.95
Large Growth Fund – Original Class	$1,000.00	$1,018.35	$6.51
Value Fund – Original Class	$1,000.00	$1,018.55	$6.31
Total Return Fund – Original Class	$1,000.00	$1,018.30	$6.56
Balanced Fund – Original Class	$1,000.00	$1,016.61	$8.25

(1)

Expenses are equal to the Growth Fund’s expense ratio of 1.34%, the Growth II Fund’s expense ratio of 1.63%, the Focus 30 Fund’s expense ratio of 1.39%, the Large Growth Fund’s expense ratio of 1.30%, the Value Fund’s expense ratio of 1.26%, the Total Return Fund’s expense ratio of 1.31%, and the Balanced Fund’s expense ratio of 1.65%, multiplied by the average account value over the period, multiplied by 181/365 days (to reflect one-half year period.)

	Beginning	Ending	Expenses Paid
	Account Value	Account Value	During Period(2)
Institutional Class	11/1/09	4/30/10	11/1/09 - 4/30/10

Actual
Growth Fund – Institutional Class	$1,000.00	$1,031.82	$4.94
Growth II Fund – Institutional Class	$1,000.00	$1,044.04	$4.97
Focus 30 Fund – Institutional Class	$1,000.00	$1,033.70	$4.94
Large Growth Fund – Institutional Class	$1,000.00	$1,028.90	$4.93
Value Fund – Institutional Class	$1,000.00	$1,023.56	$4.92

Hypothetical (5% return
before expenses)
Growth Fund – Institutional Class	$1,000.00	$1,003.10	$4.87
Growth II Fund – Institutional Class	$1,000.00	$1,003.10	$4.87
Focus 30 Fund – Institutional Class	$1,000.00	$1,003.10	$4.87
Large Growth Fund – Institutional Class	$1,000.00	$1,003.10	$4.87
Value Fund – Institutional Class	$1,000.00	$1,003.10	$4.87

(2)	Expenses are equal to the Growth, Growth II, Focus 30, Large Growth, and Value Funds’ expense ratio of 0.98%, multiplied by the average account value over the period, multiplied by 181/365 days (to reflect one-half year period.)

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EXPENSE EXAMPLE AND PROXY VOTING POLICY

How to Obtain a Copy of the Funds’ Proxy Voting Policy and Proxy Voting Records

A description of the policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities is available without charge: (1) by calling 1-800-966-4354; (2) on the Hennessy Funds website at www.hennessyfunds.com; or (3) on the U.S. Securities and Exchange Commission’s website at www.sec.gov. Hennessy Funds’ proxy voting record is available on the SEC’s website at www.sec.gov no later than August 31 for the prior 12 months ending June 30.

Quarterly Filings on Form N-Q

The Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Form N-Q will be available on the SEC’s website at www.sec.gov. The Funds’ Form N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC and information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. Information included in the Funds’ N-Q will also be available upon request by calling 1-800-966-4354.

Federal Tax Distribution Information (Unaudited)

The Value, Total Return and Balanced Fund designated 100%, 100% and 99.32%, respectively, of the dividend declared from net investment income during the year ended October 31, 2009, as qualified dividend income under the Jobs Growth and Tax Reconciliation Act of 2003.

For the year ended October 31, 2009, 84.20%, 100% and 99% of the ordinary income distributions paid by the Value, Total Return and Balanced Funds, respectively, qualify for the dividends received deduction available to corporate shareholders.

HENNESSY FUNDS 1-800-966-4354

Board Approval of Continuation of

Investment Advisory Agreement

At its meeting on March 3, 2010, the Board of Directors (the “Board”) of The Hennessy Funds, Inc. and its two series, the Hennessy Balanced Fund (the “Balanced Fund”) and the Hennessy Total Return Fund (the “Total Return Fund”), The Hennessy Mutual Funds, Inc. and its three series, the Hennessy Cornerstone Growth Fund (the “Growth Fund”), the Hennessy Cornerstone Value Fund (the “Value Fund”), and the Hennessy Focus 30 Fund (the “Focus 30 Fund”), The Hennessy Funds Trust which includes the Hennessy Cornerstone Growth Fund, Series II (the “Growth II Fund”), Hennessy Cornerstone Large Growth Fund (the “Large Growth Fund”), and the Hennessy Select Large Value Fund (the “Large Value” Fund), and the Hennessy SPARX Funds Trust and its two series, the Hennessy Select SPARX Japan Fund (the “Japan Fund”) and the Hennessy Select SPARX Japan Smaller Companies Fund (the “Japan Smaller Companies Fund” or collectively with the Growth, Growth II, Value, Focus 30, Total Return, Balanced, Large Value and Large Growth funds, the “Funds”) including the Directors who are not “interested persons” (as defined in the Investment Company Act of 1940) of the Funds’ voted to re-approve the current investment advisory and sub-advisory agreements (the “Advisory Agreements”) for the Funds. The Board reviewed and discussed the specific services provided by Hennessy Advisors, Inc. (the “Advisor”). The Advisor:

•

Provides formula driven investment management for the Balanced Fund, Total Return Fund, Growth Fund, Value Fund, Focus 30 Fund, Growth II Fund and Large Growth Fund. In providing investment management the Advisor directs the trading of securities and the rebalancing of the portfolios for these seven Funds.

•

Provides oversight of the sub-advisors for the Hennessy Select Large Value Fund, Hennessy Select SPARX Japan Fund and Hennessy Select SPARX Japan Smaller Companies Fund. The sub-advisors for those three Funds provide portfolio management, including directing the trading of securities.

•

Pays half of the salary and payroll expenses of the Funds’ Chief Compliance Officer.

•

Provides responsive customer and shareholder servicing which consists of providing a call center to respond to shareholder inquiries, including specific mutual fund account information. Shareholders can contact the Advisor directly during office hours. The Advisor endeavors to answer all calls in person within two rings of the telephone.

•

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BOARD APPROVAL OF CONTINUATION OF INVESTMENT ADVISORY AGREEMENT

purchase the Funds through third party distribution channels without paying a transaction fee. The Advisor pays a portion of the fees charged by these third party distributors.

•

Oversees those third party service providers that support the Funds in providing fund accounting, fund administration, fund distribution, transfer agency and custodial services.

The Board also: (i) compared the performance of each Fund to benchmark indices over various periods of time and concluded that the performance of each Fund warranted the continuation of the Advisory Agreement; (ii) compared the expense ratios of funds similar in asset size and investment objective to each of the Funds and concluded the actual or projected expenses of each Fund were reasonable and warranted continuation of the Advisory Agreement; (iii) considered the fees charged by Hennessy Advisors, Inc. to those of funds similar in asset size and investment objective to each of the Funds and concluded the advisory fees of each Fund were reasonable and warranted continuation of the Advisory Agreement; (iv) considered the profitability of Hennes sy Advisors, Inc. with respect to each Fund and the profitability of the Sub-Advisors with respect to the Select Series Funds and concluded the profits were reasonable and not excessive when compared to profitability guidelines set forth in relevant court cases; (v) considered the high level of professionalism and knowledge, along with an extremely low level of turnover, of the employees of the Advisor; and (vi) considered that Neil Hennessy was named one of the top 100 portfolio managers in the nation from 2003 through 2008 by Barron’s (there was no list in 2009).

The Board then discussed economies of scale and breakpoints and determined that the Funds managed by Hennessy Advisors, Inc. have not yet grown in size, nor has their marketplace demonstrated significantly rapid potential growth to any extent that would warrant the use of breakpoints. The Funds have, in fact, had their assets under management greatly diminish during 2008 and 2009. In reaching this conclusion the Board took into consideration the profitability of Hennessy Advisors, Inc. and the advisory fees of comparable mutual funds.

The Board reviewed the Funds’ expense ratios and comparable expense ratios for funds like the ten funds being considered for contract renewal by Hennessy Advisors, Inc. The Board used data from Lipper as presented in the charts in the Board Materials showing funds similar in nature to the Hennessy Funds (Mid-Cap Blend, Small Cap Blend, etc.). The Board determined that the expense ratios of the Funds fall within the range of the ratios of other funds in their classification. The Board also referenced the Advisor’s Form ADV and copies of the current Investment Advisory Agreements. All of the factors above were considered separately by the non-interested Directors in an executive session during which management of the Advisor was not present. The factors were viewed in their totality by the Board, with no single factor being the principal or determinative factor in the Board’s determination of whether to approve the continuation of the Advisory Agreements. Based on the factors discussed above, the Board, including all Independent Directors, recommended continuation of the Advisory Agreements.

HENNESSY FUNDS 1-800-966-4354

For information, questions

or assistance, please call

The Hennessy Funds

1-800-966-4354 or 1-415-899-1555

INVESTMENT ADVISOR	TRUSTEES
Hennessy Advisors, Inc.	Neil J. Hennessy
7250 Redwood Blvd., Suite 200	Robert T. Doyle
Novato, California 94945	J. Dennis DeSousa
	Gerald P. Richardson
ADMINISTRATOR, TRANSFER
AGENT, DIVIDEND PAYING	COUNSEL
AGENT & SHAREHOLDER	Foley & Lardner LLP
SERVICING AGENT	777 East Wisconsin Avenue
U.S. Bancorp Fund Services, LLC	Milwaukee, Wisconsin 53202-5306
P.O. Box 701
Milwaukee, Wisconsin 53201-0701	INDEPENDENT REGISTERED
	PUBLIC ACCOUNTING FIRM
CUSTODIAN	KPMG LLP
U.S. Bank N.A.	303 East Wacker Drive
Custody Operations	Chicago, Illinois 60601
1555 North River Center Dr., Suite 302
Milwaukee, Wisconsin 53212	DISTRIBUTOR
	Quasar Distributors, LLC
	615 East Michigan Street
	Milwaukee, Wisconsin 53202

WWW.HENNESSYFUNDS.COM

This report has been prepared for shareholders and may be distributed to others only if preceded or accompanied by a current prospectus.

HENNESSY FUNDS

SEMI-ANNUAL REPORT

APRIL 30, 2010

Hennessy Select Large Value Fund

Hennessy Select SPARX Japan Fund

Hennessy Select SPARX Japan Smaller Companies Fund

Contents

Letter to shareholders		1
Fund performance review and outlook		4
Summaries of investments
Hennessy Select Large Value Fund		8
Hennessy Select SPARX Japan Fund		14
Hennessy Select SPARX Japan Smaller Companies Fund		18
Financial statements
Statements of assets and liabilities		24
Statements of operations		26
Statements of changes in net assets		28
Financial highlights
Hennessy Select Large Value Fund		34
Hennessy Select SPARX Japan Fund		38
Hennessy Select SPARX Japan Smaller Companies Fund		42
Notes to the financial statements		44
Expense example		53
Additional information		55
Board approval of continuation
of investment advisory agreement		56

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LETTER TO SHAREHOLDERS

June, 2010

Dear Hennessy Funds Shareholder:

We all know firsthand that investor confidence is still shaken. Despite very strong returns for the markets since the lows in March, 2009, people don’t believe the recovery is real and are still on the sidelines in money market funds, or perhaps even worse in my view, they are pouring their money into bonds and fixed income products. I can completely understand investors’ fears, but I was shocked to find out that many people I have spoken to believe the returns of the major indices last year were actually negative (the Dow Jones Industrial Average returned +23% for the calendar year 2009; the S&P Index +26%). That shows me just how much emotion can cloud reality.

With long-term history as my guide, I continue to believe that we should see annualized returns in the equity markets in the 8-10% range over the long run. In my opinion, interest rates will increase to more historically normal levels, and that may cause trouble for bond investments. I also foresee that companies may move toward increasing or initiating dividends. During the recent downturn, many companies took the opportunity to lay off excess employees, take write offs and close unprofitable business lines. These firms have emerged “lean and mean,” and any increase in sales will likely fall directly to their bottom lines. This lower growth environment provides a great opportunity for companies to increase dividends in order to try and drive the ir underlying stock prices higher. Companies with strong retained earnings and cash positions should have no problem covering these dividends in the future. The S&P 500 companies alone have approximately $600 billion in cash on their balance sheets currently.

HENNESSY FUNDS 1-800-966-4354

Best regards,

Neil J. Hennessy

Portfolio Manager & Chief Investment Officer

Past performance does not guarantee future results.

Mutual fund investing involves risk. Principal loss is possible.

The S&P 500 Index and Dow Jones Industrial Average are unmanaged indices commonly used to measure the performance of U.S. stocks. One cannot invest directly in an index.

Opinions expressed are those of Neil Hennessy and are subject to change, are not guaranteed and should not be considered investment advice.

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LETTER TO SHAREHOLDERS

(This Page Intentionally Left Blank.)

HENNESSY FUNDS 1-800-966-4354

Fund Performance Review and Outlook

RBC GLOBAL ASSET MANAGEMENT (U.S.), SUB-ADVISOR

Hennessy Select Large Value Fund

For the six month period ended April 30, 2010, the Hennessy Select Large Value Fund returned 13.97%, underperforming its benchmark index, the Russell 1000 Value Index, which returned 17.77%. The Fund employs a sector neutral approach, so the Fund’s relative performance is the result of stock selection, not sector selection. Versus the Index, the Fund performed best in the Telecommunications and Utilities sectors, but saw the widest underperformance in the Financial and Industrial sectors.

Within the Financial sector, the portfolio was fully invested in commercial banks, holding an average of 5.5% of the portfolio in that industry, and recorded excellent returns, with that sector of the portfolio gaining 21.7%. However, that industry did even better within the Russell 1000 Value Index, returning 31.1%. The Fund has been positioned in the higher quality banks in the industry, such as US Bancorp, which gained 15.7% during the period. However, the lower quality banks have had much better returns as investors flocked to companies showing the most potential improvement rather than those with the highest quality earnings and balance sheets. Similarly, while slightly underweight the industry, the Fund had good returns in the Real Estate Investment Trust (REIT) part of the Financial sector, gaining 29.2%. However, with lower quality REITS leading the way, the sector overall gained 34.4%. Fund management believes that while the economic recovery will be solid and continuing, there has been excess enthusiasm for the lower quality companies in the Financial sector, and we are continuing to emphasize higher quality holdings.

The Fund’s experience in the Industrial sector was similar to the Financial sector. The portfolio showed good returns, gaining 25.5%, but the overall Industrial sector did even better, returning 32.0%. The entire shortfall versus the benchmark was in the machinery industry. Companies highly leveraged to the economic cycle, and especially to traditionally early cycle activities, did especially well as that sub-sector returned 28.9%. The Fund’s holding of Illinois Toolworks did well, gaining 12.6%, but not well enough to keep up. Fund management believes that the current prices of the highly cyclical machinery companies requires an earnings level in 2011 which they may well not attain, and continues to own companies which should not require as much earnings improvement for the sto ck prices to advance.

The Fund correctly anticipated that electric utilities would do poorly in the current environment, and owned gas utilities and multi-utilities instead. This proved highly beneficial, as the gas utility industry in the benchmark index gained 19.7% versus 7.2% for electric utilities. Stock selection within the gas utility industry also helped, as the portfolio gained 25.6% versus the aforementioned 19.7%.

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FUND PERFORMANCE REVIEW AND OUTLOOK

The Telecommunications sector is dominated by two companies, AT&T and Verizon. The Fund performed in line with the market regarding those two losing a little ground in Verizon and gaining it back in AT&T. The sector performance of the portfolio was greatly helped by a position in Qwest Communication, which gained 51.5% during the period.

During the period the Fund’s performance was hampered, versus the benchmark, by being invested in higher quality and less cyclical companies. However, we believe that higher quality stocks should begin to perform more strongly and that the portfolio is very well positioned going forward.

SPARX ASSET MANAGEMENT CO., LTD., SUB-ADVISOR

During the six month period from November, 2009 through April, 2010, the Japanese equity market remained somewhat volatile. In the month of November, Japan’s stock indices fell as the US Dollar (USD) weakened against the Japanese Yen (JPY) to the lowest level in more than 14 years ($1 = 84 JPY). However, the equity market soon resumed its upward momentum from December forward after the nation’s central bank announced that it would “make utmost efforts to pull the economy out of deflation” underscoring hopes for an economic recovery in 2010. News of Greece’s bloated deficit, a weakening of the Euro against the JPY and concerns over the impact of Toyota’s vehicle recalls sent Japanese shares lower in February. Come March, reports that the Bank of Japan was considering further monetary easing caused the cu rrency to fall to the 90 level against the USD and consequently triggered a rally in the Japanese equity market that sent the Nikkei 225 above the 11,000 mark. In April, the market remained almost flat as investors awaited Japan Inc.’s earnings guidance for the fiscal year ending in March, 2011.

In our view, investors grow more and more relieved as many Japanese firms announce increased forecast revisions for the current fiscal year ending in March, 2011. Also, concerns about further drastic currency fluctuations have abated since the JPY continued to weaken against the USD. Our research indicates that now is the time to invest in Japan as we continue to see great investment opportunities based on our view that there are many firms that are still undervalued despite a recovery in corporate earnings. Given that, we believe that investors will hunt for these undervalued individual names that have stronger balance sheets, competitive manufacturing edge combined with high quality craftsmanship or energy-efficient technologies.

Hennessy Select SPARX Japan Fund

For the six-month period ended April 30, 2010, the Hennessy Select SPARX Japan Fund returned 6.99% while the TOPIX and MSCI Japan Indices gained 6.52% and 7.81% respectively. The largest contributors to the Fund’s performance among the TOPIX 33 sub-industries included shares of wholesalers, auto-related companies and electronic appliance makers. Conversely, drug makers, nonferrous metal producers and real estate firms were among the worst performers.

Among individual companies, the chief positive contributors to the Fund’s performance during the period came from Japan’s leading maker of trucks, Isuzu Motors Ltd., and the nation’s leading supplier of factory automation sensors,

HENNESSY FUNDS 1-800-966-4354

Keyence Corporation. Shares of Isuzu advanced +53% on optimism that its truck sales may increase in Thailand and the rest of Asia. Keyence shares rose +23% on the back of several positive brokerage reports on its rival company Omron Corporation, another leading factory automation sensor manufacturer, in which analysts highlighted Omron’s robust revenue trend in mainland China and its potential for long-term growth and market expansion in the region.

Taiyo Nippon Sanso Corp., the nation’s No. 1 producer of industrial gases, and drug maker, Rohto Pharmaceutical Co., Ltd., were among the leading detractors to the Fund’s performance for the period. The share price of Taiyo Nippon slid -17% on profit taking following a sharp increase in the second-half of 2009. Rohto’s stock price slumped -11% as investors shifted their investments from the so-called “defensive” names into cyclical stocks amid a global recovery.

Hennessy Select SPARX Japan Smaller Companies Fund

For the six-month period ended April 30, 2010, the Hennessy Select SPARX Japan Smaller Companies Fund had a total return of 7.14%, outperforming its benchmark index, the MSCI Small Cap Japan Index, which returned 5.86%. The biggest contributors to the Fund’s performance among the TOPIX 33 sub-industries included shares of electronic appliance makers, retailers and wholesalers. Conversely, textiles & apparels makers, construction firms, banks and real estate firms were among the worst performers.

Among individual companies, the chief positive contributors to the Fund’s performance during the period were Press Kogyo Co., Ltd. a leading manufacturer of press parts for automobiles, and Fujitsu General Ltd., a leading producer of air conditioners. Shares of Press Kogyo advanced +48% on growing expectations that domestic demand for trucks has bottomed. Fujitsu General gained +57% after the company, for a second time this year, boosted its earnings forecast for its fiscal year ended March, 2010, citing a recovery in overseas demand for air conditioners and aggressive cost-cutting measures. The company had previously raised its earnings guidance in October, 2009.

Asunaro Aoki Construction Co., Ltd., a medium-scale general contractor, and T-Gaia Corporation, a leading mobile phone retailer, were among the leading detractors to the Fund’s performance for the period. The share price of Asunaro Aoki plunged -27% after surging from the beginning of this year. T-Gaia shares retreated -11% on profit-taking, following a sharp increase in December.

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FUND PERFORMANCE REVIEW AND OUTLOOK

Past performance does not guarantee future results.

Mutual fund investing involves risk. Principal loss is possible. Small and medium-capitalization companies tend to have limited liquidity and greater price volatility than large-capitalization companies. Growth stocks typically are more volatile than value stocks; however, value stocks have a lower expected growth rate in earnings and sales. Investments in foreign securities involve greater volatility and political, economic and currency risk and differences in accounting methods.

The Dow Jones Industrial Average is an unmanaged index commonly used to measure the performance of U.S. stocks. The Russell Value index measures the performance of large cap, value-oriented stocks. The MSCI Japan Index is a market capitalization-weighted index of Japanese equities. The MSCI Japan Small Cap Index represents the universe of small capitalization companies in the Japanese equity markets. The Tokyo Stock Price Index (TOPIX) is a market capitalization-weighted index of all companies listed on the First Section of the Tokyo Stock Exchange. The TOPIX and MSCI Japan indices are presented in U.S. Dollar terms and take into account reinvestment of dividends. The Nikkei 225 is a stock market index for the Tokyo Stock Exchange. One cannot invest directly in an index.

Current and future holdings are subject to risk.

HENNESSY FUNDS 1-800-966-4354

Summaries of Investments

The following summaries of investments are designed to help investors better understand the Funds’ principal holdings. The summaries are as of April 30, 2010 (Unaudited).

HENNESSY SELECT

LARGE VALUE FUND

(% of Net Assets)

	TOP TEN EQUITY HOLDINGS	% of net assets
	Exxon Mobil Corp.	4.79%
	Chevron Corp.	4.25%
	General Electric Co.	3.61%
	JPMorgan Chase & Co.	3.61%
	Bank of America Corp.	3.21%
	Wells Fargo & Co.	2.39%
	Schlumberger Ltd.	2.36%
	Apache Corp.	2.31%
	Comcast Corp.	2.10%
	US Bancorp	2.10%

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SUMMARY OF INVESTMENTS — HENNESSY SELECT LARGE VALUE FUND

COMMON STOCKS – 98.83%	Number				% of
	of Shares		Value		Net Assets
Consumer Discretionary – 12.11%
CBS Corp.		63,325	$	1,026,498		0.72	%
Comcast Corp.		151,400		2,988,636		2.10	%
The Walt Disney Co.		80,030		2,948,305		2.07	%
Dean Foods Co. (a)		64,280		1,009,196		0.71	%
Ford Motor Co. (a)		107,105		1,394,507		0.98	%
The Gap, Inc.		58,120		1,437,308		1.01	%
Home Depot, Inc.		67,105		2,365,451		1.66	%
Macy’s, Inc.		74,430		1,726,776		1.21	%
Mattel, Inc.		36,955		851,813		0.60	%
Pulte Homes, Inc. (a)		52,920		692,723		0.49	%
Starwood Hotels & Resorts Worldwide, Inc.		14,720		802,387		0.56	%
				17,243,600		12.11	%
Consumer Staples – 4.79%
Conagra Foods, Inc.		53,065		1,298,501		0.91	%
CVS Caremark Corp.		35,300		1,303,629		0.92	%
Dr. Pepper Snapple Group, Inc.		56,300		1,842,699		1.29	%
Kellogg Co.		43,190		2,372,858		1.67	%
				6,817,687		4.79	%
Energy – 17.61%
Anadarko Petroleum Corp.		20,280		1,260,605		0.89	%
Apache Corp.		32,285		3,285,322		2.31	%
Chevron Corp.		74,240		6,046,106		4.25	%
ConocoPhillips		6,120		362,243		0.25	%
Devon Energy Corp.		36,660		2,468,318		1.73	%
Exxon Mobil Corp.		100,630		6,827,745		4.79	%
Schlumberger Ltd. (b)		47,125		3,365,667		2.36	%
Valero Energy Corp.		70,565		1,467,046		1.03	%
				25,083,052		17.61	%
Financials – 25.00%
American Express Co.		32,090		1,479,991		1.04	%
Bank of America Corp.		256,625		4,575,624		3.21	%
Bank Of New York Mellon Corp.		34,445		1,072,273		0.75	%
Citigroup, Inc. (a)		358,355		1,566,011		1.10	%

The accompanying notes are an integral part of these financial statements.

HENNESSY FUNDS 1-800-966-4354

COMMON STOCKS	Number				% of
	of Shares		Value		Net Assets
Financials (Continued)
CME Group, Inc.		3,860	$	1,267,663		0.89	%
Digital Realty Trust, Inc.		23,090		1,355,383		0.95	%
The Goldman Sachs Group, Inc.		11,355		1,648,746		1.16	%
JPMorgan Chase & Co.		120,685		5,138,767		3.61	%
Lincoln National Corp.		46,610		1,425,800		1.00	%
MetLife, Inc.		23,045		1,050,391		0.74	%
Morgan Stanley		82,165		2,483,026		1.74	%
PNC Financial Services Group, Inc.		31,830		2,139,294		1.50	%
Simon Property Group, Inc.		17,483		1,556,337		1.09	%
Travelers Companies, Inc.		48,450		2,458,353		1.73	%
US Bancorp (d)		111,520		2,985,390		2.10	%
Wells Fargo & Co.		102,815		3,404,205		2.39	%
				35,607,254		25.00	%
Health Care – 8.25%
Abbott Laboratories		51,845		2,652,390		1.86	%
Community Health Systems Inc. (a)		51,770		2,115,322		1.49	%
Forest Laboratories, Inc. (a)		32,755		892,901		0.63	%
Merck & Co., Inc.		52,822		1,850,883		1.30	%
Pfizer, Inc.		115,255		1,927,064		1.35	%
UnitedHealth Group, Inc.		76,195		2,309,471		1.62	%
				11,748,031		8.25	%
Industrials – 11.52%
Boeing Co.		13,870		1,004,604		0.71	%
Cummins, Inc.		10,380		749,747		0.53	%
Deere & Co.		19,035		1,138,674		0.80	%
Foster Wheeler AG (a)(b)		35,835		1,074,333		0.75	%
General Dynamics Corp.		19,970		1,524,909		1.07	%
General Electric Co.		272,780		5,144,631		3.61	%
Illinois Tool Works, Inc.		36,220		1,850,842		1.30	%
Precision Castparts Corp.		11,365		1,458,584		1.02	%
Union Pacific Corp.		32,530		2,461,220		1.73	%
				16,407,544		11.52	%

The accompanying notes are an integral part of these financial statements.

WWW.HENNESSYFUNDS.COM

SUMMARY OF INVESTMENTS — HENNESSY SELECT LARGE VALUE FUND

COMMON STOCKS	Number				% of
	of Shares		Value		Net Assets
Information Technology – 4.94%
Hewlett-Packard Co.		53,385	$	2,774,419		1.95	%
Intel Corp.		67,000		1,529,610		1.07	%
Microsoft Corp.		89,530		2,734,246		1.92	%
				7,038,275		4.94	%
Materials – 5.16%
Eastman Chemical Co.		32,195		2,154,490		1.51	%
Freeport-McMoRan Copper & Gold, Inc.		8,595		649,180		0.46	%
International Paper Co.		67,730		1,811,100		1.27	%
Pactiv Corp. (a)		77,485		1,968,894		1.38	%
United States Steel Corp.		13,920		760,867		0.54	%
				7,344,531		5.16	%
Telecommunication Services – 3.25%
Qwest Communications International Inc.		334,985		1,751,971		1.23	%
Verizon Communications, Inc.		99,695		2,880,189		2.02	%
				4,632,160		3.25	%
Utilities – 6.20%
American Electric Power, Inc.		30,130		1,033,459		0.73	%
Dominion Resources, Inc.		35,565		1,486,617		1.04	%
Exelon Corp.		60,225		2,625,208		1.84	%
MDU Resources Group, Inc.		59,045		1,251,754		0.88	%
PG&E Corp.		55,465		2,429,367		1.71	%
				8,826,405		6.20	%

Total Common Stocks (Cost $117,830,759)				140,748,539		98.83	%

The accompanying notes are an integral part of these financial statements.

HENNESSY FUNDS 1-800-966-4354

SHORT-TERM INVESTMENTS – 1.19%	Number					% of
	of Shares		Value			Net Assets
Money Market Funds – 1.19%
Fidelity Government Portfolio, 0.04% (c)		1,693,344	$	1,693,344			1.19	%

Total Short-Term Investments
(Cost $1,693,344)				1,693,344			1.19	%

Total Investments – 100.02%
(Cost $119,524,103)				142,441,883			100.02	%

Liabilities in Excess of Other Assets – (0.02)%				(26,857	)		(0.02	)%
TOTAL NET ASSETS – 100.00%			$	142,415,026			100.00	%

Percentages are stated as a percent of net assets.

(a)

Non-income producing

(b)

Foreign issued security

(c)

The rate listed is the Fund’s 7-day yield as of April 30, 2010.

(d)

Investment in affiliated security. Quasar Distributors, LLC, which serves as the funds’ distributor, is a subsidiary of US Bancorp. Details of transactions with this affiliated company for the six months ended April 30, 2010 were as follows:

	Beginning	Purchase	Sales	Ending	Dividend		Market
Issuer	Cost	Cost	Cost	Cost	Income	Shares	Value
US Bancorp	$1,519,765	$0	$201,782	$1,721,547	$12,674	111,520	$2,985,390

Summary of Fair Value Exposure at April 30, 2010 (Unaudited)

The Fund has performed an analysis of all existing investments to determine the significance and character of all inputs to their fair value determination.

Level 1 –

Quoted unadjusted prices for identical instruments in active markets to which the Fund has access at the date of measurement.

Level 2 –

Level 3 –

The accompanying notes are an integral part of these financial statements.

WWW.HENNESSYFUNDS.COM

SUMMARY OF INVESTMENTS — HENNESSY SELECT LARGE VALUE FUND

The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used to value the Fund’s net assets as of April 30, 2010:

Common Stock	Level 1		Level 2		Level 3		Total
Consumer Discretionary	$	17,243,600	$	—	$	—	$	17,243,600
Consumer Staples		6,817,687		—		—		6,817,687
Energy		25,083,052		—		—		25,083,052
Financials		35,607,254		—		—		35,607,254
Health Care		11,748,031		—		—		11,748,031
Industrials		16,407,544		—		—		16,407,544
Information Technology		7,038,275		—		—		7,038,275
Materials		7,344,531		—		—		7,344,531
Telecommunication Services		4,632,160		—		—		4,632,160
Utilities		8,826,405		—		—		8,826,405
Total Common Stock	$	140,748,539	$	—	$	—	$	140,748,539
Short-Term Investments	$	1,693,344	$	—	$	—	$	1,693,344
Total Investments in Securities	$	142,441,883	$	—	$	—	$	142,441,883

The accompanying notes are an integral part of these financial statements.

HENNESSY FUNDS 1-800-966-4354

HENNESSY SELECT SPARX

JAPAN FUND

(% of Net Assets)

	TOP TEN EQUITY HOLDINGS	% of net assets
	Keyence Corp.	7.42%
	Mitsubishi Corp.	6.21%
	Asics Corp.	5.65%
	Fuji Seal International, Inc.	5.41%
	Misumi Group, Inc.	5.40%
	Kao Corp.	5.36%
	Unicharm Corp.	4.81%
	Ryohin Keikaku Co., Ltd.	4.29%
	Rohto Pharmaceutical Co., Ltd.	4.15%
	Marubeni Corp.	4.12%

WWW.HENNESSYFUNDS.COM

SUMMARY OF INVESTMENTS — HENNESSY SELECT SPARX JAPAN FUND

COMMON STOCKS – 90.38%	Number of				% of
	Shares		Value		Net Assets
Consumer Discretionary – 20.27%
Asics Corp.		350,000	$	3,348,081		5.65	%
Isuzu Motors, Ltd.		565,000		1,797,629		3.03	%
Mizuno Corp.		45,000		200,431		0.34	%
Ryohin Keikaku Co., Ltd.		55,900		2,541,513		4.29	%
Shimano, Inc.		48,200		2,200,026		3.71	%
Toyota Motor Corp.		49,800		1,924,170		3.25	%
				12,011,850		20.27	%
Consumer Staples – 11.58%
Ariake Japan Co., Ltd.		30,700		458,711		0.77	%
Kao Corp.		130,400		3,179,399		5.36	%
Unicharm Corp.		29,300		2,847,982		4.81	%
Unicharm Petcare Corp.		11,300		376,379		0.64	%
				6,862,471		11.58	%
Financials – 2.99%
Mizuho Financial Group, Inc.		411,400		792,161		1.33	%
Sumitomo Mitsui Financial Group, Inc.		29,700		982,234		1.66	%
				1,774,395		2.99	%
Health Care – 6.47%
Mani, Inc.		15,000		536,783		0.91	%
Rohto Pharmaceutical Co., Ltd.		225,000		2,461,248		4.15	%
Terumo Corp.		16,400		835,506		1.41	%
				3,833,537		6.47	%
Industrials – 26.01%
Daikin Industries Ltd.		33,100		1,248,210		2.11	%
Itochu Corp.		222,000		1,923,332		3.24	%
Komatsu, Ltd.		75,200		1,515,831		2.56	%
Marubeni Corp.		414,000		2,442,744		4.12	%
Misumi Group, Inc.		160,500		3,198,946		5.40	%
Mitsubishi Corp.		155,400		3,681,099		6.21	%
Sumitomo Corp.		116,800		1,406,495		2.37	%
				15,416,657		26.01	%
Information Technology – 8.00%
Keyence Corp.		18,400		4,396,590		7.42	%

The accompanying notes are an integral part of these financial statements.

HENNESSY FUNDS 1-800-966-4354

COMMON STOCKS	Number of					% of
	Shares		Value			Net Assets
Information Technology (Continued)
Toshiba Corp.		60,000	$	345,872			0.58	%
				4,742,462			8.00	%
Materials – 15.06%
Fuji Seal International, Inc.		155,100		3,205,141			5.41	%
JFE Holdings, Inc.		10,900		388,715			0.66	%
Sumitomo Metal Industries, Ltd.		451,000		1,224,195			2.06	%
Sumitomo Metal Mining Co., Ltd.		113,000		1,671,780			2.82	%
Taiyo Nippon Sanso Corp.		271,000		2,434,550			4.11	%
				8,924,381			15.06	%

Total Common Stocks (Cost $54,227,320)				53,565,753			90.38	%

SHORT-TERM INVESTMENTS – 10.74%
Money Market Funds – 10.74%
Federated Treasury Obligations, 0.01% (a)		384,910		384,910			0.65	%
Federated Government Obligations, 0.08% (a)		2,799,232		2,799,232			4.72	%
Fidelity Government Portfolio, 0.04% (a)		3,181,784		3,181,784			5.37	%

				6,365,926			10.74	%

Total Short-Term Investments
(Cost $6,365,926)				6,365,926			10.74	%

Total Investments – 101.12%
(Cost $60,593,246)				59,931,679			101.12	%

Liabilities in Excess of Other Assets – (1.12)%				(667,152	)		(1.12	)%
TOTAL NET ASSETS – 100.00%			$	59,264,527			100.00	%

Percentages are stated as a percent of net assets.

(a)

The rate listed is the Fund’s 7-day yield as of April 30, 2010.

The accompanying notes are an integral part of these financial statements.

WWW.HENNESSYFUNDS.COM

SUMMARY OF INVESTMENTS — HENNESSY SELECT SPARX JAPAN FUND

Summary of Fair Value Exposure at April 30, 2010 (Unaudited)

The Fund has performed an analysis of all existing investments to determine the significance and character of all inputs to their fair value determination.

Level 1 –

Quoted unadjusted prices for identical instruments in active markets to which the Fund has access at the date of measurement.

Level 2 –

Level 3 –

The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used to value the Fund’s net assets as of April 30, 2010:

Common Stock	Level 1		Level 2		Level 3		Total
Consumer Discretionary	$	—	$	12,011,850	$	—	$	12,011,850
Consumer Staples		—		6,862,471		—		6,862,471
Financials		—		1,774,395		—		1,774,395
Health Care		—		3,833,537		—		3,833,537
Industrials		—		15,416,657		—		15,416,657
Information Technology		—		4,742,462		—		4,742,462
Materials		—		8,924,381		—		8,924,381
Total Common Stock	$	—	$	53,565,753	$	—	$	53,565,753
Short-Term Investments	$	6,365,926	$	—	$	—	$	6,365,926
Total Investments in Securities	$	6,365,926	$	53,565,753	$	—	$	59,931,679

The accompanying notes are an integral part of these financial statements.

HENNESSY FUNDS 1-800-966-4354

HENNESSY SELECT SPARX

JAPAN SMALLER COMPANIES FUND

(% of Net Assets)

	TOP TEN EQUITY HOLDINGS	% of net assets
	Bals Corp.	2.53%
	Fujitsu General Ltd.	2.39%
	So-net M3, Inc.	2.38%
	Press Kogyo Co., Ltd.	2.30%
	SBS Holdings, Inc.	2.17%
	ASKUL Corp.	2.17%
	Suruga Bank, Ltd.	2.17%
	SRA Holdings, Inc.	2.07%
	Aica Kogyo Co., Ltd.	2.06%
	Takeei Corp.	1.99%

WWW.HENNESSYFUNDS.COM

SUMMARY OF INVESTMENTS — HENNESSY SELECT SPARX JAPAN SMALLER COMPANIES FUND

COMMON STOCKS – 97.13%	Number of				% of
	Shares		Value		Net Assets
Consumer Discretionary – 28.93%
Amiyaki Tei Co., Ltd.		77	$	205,630		1.14	%
ASKUL Corp.		19,400		392,633		2.17	%
Bals Corp.		422		457,275		2.53	%
Fujitsu General Ltd.		85,000		432,214		2.39	%
Honeys Co., Ltd		29,360		296,910		1.64	%
Ikyu Corp.		517		286,836		1.59	%
Kadokawa Group Holdings, Inc.		9,700		223,710		1.24	%
Meiwa Estate Co., Ltd.		40,500		288,138		1.60	%
Nippon Seiki Co., Ltd.		26,000		285,950		1.58	%
Otsuka Kagu, Ltd.		29,500		345,518		1.91	%
Press Kogyo Co., Ltd.		132,000		416,176		2.30	%
Sanden Corp.		66,000		247,060		1.37	%
Sankyo Seiko Co., Ltd.		48,000		139,027		0.77	%
Seiren Co., Ltd.		43,500		268,203		1.48	%
Tohokushinsha Film Corp.		49,700		314,590		1.74	%
Village Vanguard Co., Ltd.		75		338,761		1.88	%
Wowow, Inc.		131		289,365		1.60	%
				5,227,996		28.93	%
Consumer Staples – 1.54%
Cawachi Ltd.		13,600		278,117		1.54	%

Financials – 7.32%
Anicom Holdings, Inc. (a)		5,400		172,747		0.96	%
Kyokuto Securities Co., Ltd.		31,200		265,061		1.47	%
RISA Partners, Inc.		343		216,507		1.20	%
Suruga Bank, Ltd.		40,000		392,523		2.17	%
Tokyo Tomin Bank, Ltd.		22,800		276,690		1.52	%
				1,323,528		7.32	%
Health Care – 5.17%
Message Co., Ltd.		152		325,343		1.80	%
Paramount Bed Co., Ltd.		9,500		179,127		0.99	%
So-net M3, Inc.		119		430,639		2.38	%
				935,109		5.17	%

The accompanying notes are an integral part of these financial statements.

HENNESSY FUNDS 1-800-966-4354

COMMON STOCKS	Number of				% of
	Shares		Value		Net Assets
Industrials – 28.34%
Aica Kogyo Co., Ltd.		29,000	$	372,681		2.06	%
Asunaro Aoki Construction., Ltd.		61,000		197,875		1.10	%
Benefit One, Inc.		448		349,369		1.93	%
Hirano Tecseed Co., Ltd.		15,000		178,447		0.99	%
Ichinen Holdings Co., Ltd.		64,700		290,589		1.61	%
Kito Corp.		233		263,414		1.46	%
Kyosan Electric Manufacturing Co., Ltd.		64,000		322,801		1.79	%
Nitto Kogyo Corp.		27,200		286,529		1.59	%
NPC Inc.		11,200		221,937		1.23	%
Prestige International, Inc.		200		338,444		1.87	%
SBS Holdings, Inc.		450		392,981		2.17	%
Shin Nippon Air Technologies Co., Ltd.		30,200		210,304		1.16	%
Takeei Corp.		24,800		360,467		1.99	%
Teraoka Seisakusho Co., Ltd.		72,900		359,280		1.99	%
Tokyo Keiki, Inc.		103,000		186,635		1.03	%
Toshin Group Co., Ltd.		16,100		356,375		1.97	%
Uchida Yoko Co., Ltd.		24,000		77,034		0.43	%
Yushin Precision Equipment Co., Ltd.		21,300		356,151		1.97	%
				5,121,313		28.34	%
Information Technology – 15.89%
Elecom Co., Ltd.		31,300		260,294		1.44	%
Macnica, Inc.		15,200		350,638		1.94	%
Nippon Chemi-con Corp. (a)		75,000		310,351		1.72	%
Otsuka Corp.		4,800		341,268		1.89	%
SRA Holdings, Inc.		39,000		373,302		2.07	%
Tamura Corp.		102,000		338,733		1.87	%
Works Applications Co., Ltd.		466		303,753		1.68	%
Yokowo Co., Ltd.		47,800		325,091		1.80	%
Zappallas, Inc.		174		267,938		1.48	%
				2,871,368		15.89	%
Materials – 9.10%
Adeka Corp.		36,000		341,107		1.89	%
JSP Corp.		19,400		228,541		1.26	%

The accompanying notes are an integral part of these financial statements.

WWW.HENNESSYFUNDS.COM

SUMMARY OF INVESTMENTS — HENNESSY SELECT SPARX JAPAN SMALLER COMPANIES FUND

COMMON STOCKS	Number of					% of
	Shares		Value			Net Assets
Materials (Continued)
Okura Industrial Co., Ltd. (a)		51,000	$	143,638			0.80	%
Senko Co., Ltd.		70,000		276,945			1.53	%
Shinagawa Refractories Co., Ltd.		77,000		240,005			1.33	%
Tokyo Tekko Co., Ltd.		52,000		156,719			0.87	%
Ube Material Industries, Ltd.		92,000		256,738			1.42	%
				1,643,693			9.10	%
Utilities – 0.84%
Japan Wind Development Co., Ltd.		60		152,008			0.84	%

Total Common Stocks (Cost $14,918,212)				17,553,132			97.13	%

SHORT-TERM INVESTMENTS – 5.06%
Money Market Funds – 5.06%
Federated Government Obligations, 0.08% (b)		137,968		137,968			0.76	%
Fidelity Government Portfolio, 0.04% (b)		776,348		776,348			4.30	%

Total Short-Term Investments
(Cost $914,316)				914,316			5.06	%

Total Investments – 102.19%
(Cost $15,832,528)				18,467,448			102.19	%

Liabilities in Excess of Other Assets – (2.19)%				(396,239	)		(2.19	)%
TOTAL NET ASSETS – 100.00%			$	18,071,209			100.00	%

Percentages are stated as a percent of net assets.

(a)

Non-income producing security.

(b)

The rate listed is the Fund’s 7-day yield as of April 30, 2010.

The accompanying notes are an integral part of these financial statements.

HENNESSY FUNDS 1-800-966-4354

Summary of Fair Value Exposure at April 30, 2010 (Unaudited)

The Fund has performed an analysis of all existing investments to determine the significance and character of all inputs to their fair value determination.

Level 1 –

Quoted unadjusted prices for identical instruments in active markets to which the Fund has access at the date of measurement.

Level 2 –

Level 3 –

The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used to value the Fund’s net assets as of April 30, 2010:

Common Stock	Level 1		Level 2		Level 3		Total
Consumer Discretionary	$	—	$	5,227,996	$	—	$	5,227,996
Consumer Staples		—		278,117		—		278,117
Financials		—		1,323,528		—		1,323,528
Health Care		—		935,109		—		935,109
Industrials		—		5,121,313		—		5,121,313
Information Technology		—		2,871,368		—		2,871,368
Materials		—		1,643,693		—		1,643,693
Utilities		—		152,008		—		152,008
Total Common Stock	$	—	$	17,553,132	$	—	$	17,553,132
Short-Term Investments	$	914,316	$	—	$	—	$	914,316
Total Investments in Securities	$	914,316	$	17,553,132	$	—	$	18,467,448

The accompanying notes are an integral part of these financial statements.

WWW.HENNESSYFUNDS.COM

SUMMARY OF INVESTMENTS — HENNESSY SELECT SPARX JAPAN SMALLER COMPANIES FUND

(This Page Intentionally Left Blank.)

HENNESSY FUNDS 1-800-966-4354

Financial Statements

Statements of Assets and Liabilities as of April 30, 2010 (Unaudited)





ASSETS:
Investments in unaffiliated securities, at value
(cost $117,802,556, $60,593,246, and $15,832,528, respectively)
Investments in affiliated securities, at value
(cost $1,721,547, $0, and $0, respectively)
Dividends and interest receivable
Receivable for fund shares sold
Receivable for securities sold
Prepaid expenses and other assets
Total Assets

LIABILITIES:
Payable for securities purchased
Payable for fund shares redeemed
Payable to Advisor
Payable to Administrator
Payable to Auditor
Accrued service fees
Accrued expenses and other payables
Total Liabilities

NET ASSETS

NET ASSETS CONSIST OF:
Capital stock
Accumulated net investment income
Accumulated net realized loss on investments
Unrealized net appreciation (depreciation) on investments and foreign currency related transactions
Total Net Assets

NET ASSETS
Original Class:
Shares authorized (no par value, $0.001 and $0.001 par value, respectively)
Net assets applicable to outstanding Original Class shares
Shares issued and outstanding
Net asset value, offering price and redemption price per share

Institutional Class:
Shares authorized (no par value and $0.001 par value, respectively)
Net assets applicable to outstanding Institutional Class shares
Shares issued and outstanding
Net asset value, offering price and redemption price per share

The accompanying notes are an integral part of these financial statements.

WWW.HENNESSYFUNDS.COM

FINANCIAL STATEMENTS – STATEMENTS OF ASSETS AND LIABILITIES

						HENNESSY
HENNESSY			HENNESSY			SELECT SPARX
SELECT LARGE			SELECT SPARX			JAPAN SMALLER
VALUE FUND			JAPAN FUND			COMPANIES FUND


$	139,456,493		$	59,931,679		$	18,467,448

	2,985,390			—			—
	104,462			363,521			162,931
	1,099			58,137			33,666
	4,177,021			—			108,059
	36,995			4,230			7,748
	146,761,460			60,357,567			18,779,852

	4,015,348			—			661,587
	106,720			969,427			—
	101,495			52,065			16,748
	88,072			38,069			9,836
	12,851			19,188			18,179
	11,937			—			—
	10,011			14,291			2,293
	4,346,434			1,093,040			708,643

$	142,415,026		$	59,264,527		$	18,071,209

$	171,395,570		$	89,924,384		$	18,388,018
	196,673			(50,769	)		(365,044	)
	(52,094,997	)		(29,941,027	)		(2,588,013	)
	22,917,780			(668,061	)		2,636,248
$	142,415,026		$	59,264,527		$	18,071,209


Unlimited			Unlimited			Unlimited
	142,376,598			31,953,208			18,071,209
	6,694,063			2,629,314			1,814,687
$	21.27		$	12.15		$	9.96

Unlimited			Unlimited				N/A
	38,428			27,311,319
	1,804			2,234,238
$	21.30		$	12.22

HENNESSY FUNDS 1-800-966-4354

Financial Statements

Statement of Operations Six Months ended April 30, 2010 (Unaudited)






INVESTMENT INCOME:
Dividend income from unaffiliated securities(1)
Dividend income from affiliated securities
Interest income
Total investment income

EXPENSES:
Investment advisory fees
Administration, fund accounting, custody and transfer agent fees
Service fees – Original Class (See Note 4)
Federal and state registration fees
Audit fees
Legal fees
Compliance expense
Reports to shareholders
Directors’ fees and expenses
Sub-transfer agent expenses – Original Class (See Note 4)
Sub-transfer agent expenses – Institutional Class (See Note 4)
Other
Total expenses before reimbursement from advisor
Expense reimbursement from advisor:
Original Class
Institutional Class
Administration Expense Waiver (See Note 4)
Net expenses

NET INVESTMENT INCOME (LOSS)

REALIZED AND UNREALIZED GAINS (LOSSES):
Net realized gain(loss) on:
Investments from unaffiliated securities
Investments from affiliated securities
Foreign currency transactions
Change in unrealized appreciation (depreciation) on:
Investments
Foreign currency translation

NET REALIZED GAIN (LOSS) AND UNREALIZED GAIN (LOSS) ON INVESTMENTS

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS

(1)	Net of foreign taxes withheld of $0, $28,533 and $15,810, respectively.

The accompanying notes are an integral part of these financial statements.

WWW.HENNESSYFUNDS.COM

FINANCIAL STATEMENTS – STATEMENT OF OPERATIONS


						HENNESSY
HENNESSY			HENNESSY			SELECT SPARX
SELECT LARGE			SELECT SPARX			JAPAN SMALLER
VALUE FUND			JAPAN FUND			COMPANIES FUND

$	1,316,658		$	379,087		$	210,046
	12,674			—			—
	400			713			120
	1,329,732			379,800			210,166


	587,043			277,643			90,605
	176,113			70,799			19,253
	69,047			—			—
	17,356			12,743			9,805
	11,455			9,917			8,927
	5,951			4,960			4,959
	1,740			1,740			1,740
	16,199			7,439			1,488
	4,958			4,959			4,959
	51,785			38,210			14,261
	—			2,000			—
	12,486			496			1,240
	954,133			430,906			157,237

	(38,444	)		(37,425	)		(19,527	)
	—			(12,915	)		—
	(39	)		—			—
	915,650			380,566			137,710
$	414,082		$	(766	)	$	72,456



$	11,165,963		$	(1,925,738	)	$	1,231,274
	(15,683	)		—			—
	—			(7,749	)		(758	)

	6,530,061			5,334,632			(231,389	)
	—			(11,421	)		(1,913	)
	17,680,341			3,389,724			997,214

$	18,094,423		$	3,388,958		$	1,069,670

HENNESSY FUNDS 1-800-966-4354

Financial Statements

Statements of Changes in Net Assets





OPERATIONS:
Net investment income
Net realized gain (loss) on securities
Change in unrealized appreciation (depreciation) on securities
Net decrease in net assets resulting from operations

DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income – Original Class
Net investment income – Institutional Class
Net investment income – Class A
Net investment income – Class C
Net investment income – Class R
Net investment income – Class S
Total distributions

CAPITAL SHARE TRANSACTIONS:
Proceeds from shares issued in the reorganization (See Note 6)
Proceeds from shares subscribed – Original Class
Proceeds from shares subscribed – Institutional Class
Proceeds from shares subscribed – Predecessor Class A
Proceeds from shares subscribed – Predecessor Class C
Proceeds from shares subscribed – Predecessor Class S
Dividends reinvested – Original Class
Dividends reinvested – Institutional Class
Dividends reinvested – Predecessor Class A
Dividends reinvested – Predecessor Class C
Dividends reinvested – Predecessor Class R
Dividends reinvested – Predecessor Class S
Cost of shares redeemed – Original Class
Cost of shares redeemed – Institutional Class
Cost of shares redeemed – Predecessor Class A
Cost of shares redeemed – Predecessor Class C
Cost of shares redeemed – Predecessor Class R
Cost of shares redeemed – Predecessor Class S
Cost of shares redeemed in the reorganization – Predecessor Class A (See Note 6)
Cost of shares redeemed in the reorganization – Predecessor Class C (See Note 6)
Cost of shares redeemed in the reorganization – Predecessor Class S (See Note 6)
Net increase (decrease) in net assets derived from capital share transactions
TOTAL INCREASE (DECREASE) IN NET ASSETS

NET ASSETS:
Beginning of period
End of period

Accumulated net investment income (loss), end of period

*	For the one month ended October 31, 2009. Effective October 31, 2009, the Fund changed its fiscal year end to October 31st from September 30th.

The accompanying notes are an integral part of these financial statements.

WWW.HENNESSYFUNDS.COM

FINANCIAL STATEMENTS – STATEMENTS OF CHANGES IN NET ASSETS

Hennessy Select Large Value Fund
Six Months Ended
April 30, 2010			One Month Ended			Year Ended
(Unaudited)			October 31, 2009*			September 30, 2009

$	414,082		$	40,481		$	2,147,657
	11,150,280			2,121,192			(38,033,622	)
	6,530,061			(6,438,340	)		17,930,480
	18,094,423			(4,276,667	)		(17,955,485	)

	(1,607,669	)		—			—
	(468	)		—			—
	—			—			(2,447	)
	—			—			(250	)
	—			—			(47	)
	—			—			(3,119,888	)
	(1,608,137	)		—			(3,122,632	)

	—			—			106,344,111
	949,342			148,751			913,870
	8,121			3,402			22,275
	—			—			4,294
	—			—			300
	—			—			1,105,178
	1,542,668			—			—
	468			—			—
	—			—			2,160
	—			—			250
	—			—			47
	—			—			2,990,948
	(9,365,902	)		(1,443,405	)		(7,303,823	)
	(2,996	)		—			—
	—			—			(206,038	)
	—			—			(2,369	)
	—			—			(2,172	)
	—			—			(12,805,550	)
	—			—			(130,787	)
	—			—			(14,058	)
	—			—			(106,199,266	)
	(6,868,299	)		(1,291,252	)		(15,280,630	)
	9,617,987			(5,567,919	)		(36,358,747	)

	132,797,039			138,364,958			174,723,705
$	142,415,026		$	132,797,039		$	138,364,958
$	196,673		$	1,390,728		$	1,350,367

HENNESSY FUNDS 1-800-966-4354

Financial Statements

Statements of Changes in Net Assets





CHANGES IN SHARES OUTSTANDING:
Shares issued in connection with reorganization
Shares sold
Original Class
Institutional Class
Predecessor Class A
Predecessor Class C
Predecessor Class S
Shares issued to holders as reinvestment of dividends
Original Class
Institutional Class
Predecessor Class A
Predecessor Class C
Predecessor Class R
Predecessor Class S
Shares redeemed
Original Class
Institutional Class
Predecessor Class A
Predecessor Class C
Predecessor Class R
Predecessor Class S
Shares redeemed in the reorganization
Predecessor Class A
Predecessor Class C
Predecessor Class S
Net increase (decrease) in shares outstanding

*	For the one month ended October 31, 2009. Effective October 31, 2009, the Fund changed its fiscal year end to October 31st from September 30th.

The accompanying notes are an integral part of these financial statements.

WWW.HENNESSYFUNDS.COM

FINANCIAL STATEMENTS – STATEMENTS OF CHANGES IN NET ASSETS


Hennessy Select Large Value Fund
Six Months Ended
April 30, 2010			One Month Ended			Year Ended
(Unaudited)			October 31, 2009*			September 30, 2009

	—			—			7,462,745

	46,708			7,564			56,201
	405			172			1,355
	—			—			272
	—			—			20
	—			—			68,408

	76,941			—			—
	23			—			—
	—			—			134
	—			—			16
	—			—			3
	—			—			187,051

	(460,801	)		(72,961	)		(422,334	)
	(151	)		—			—
	—			—			(12,588	)
	—			—			(176	)
	—			—			(164	)
	—			—			(796,220	)

	—			—			(9,127	)
	—			—			(1,000	)
	—			—			(7,452,580	)
	(336,875	)		(65,225	)		(917,984	)

HENNESSY FUNDS 1-800-966-4354

Financial Statements

Statements of Changes in Net Assets





OPERATIONS:
Net investment income (loss)
Net realized gain (loss) on securities
Change in unrealized appreciation (depreciation) on securities
Net increase (decrease) in net assets resulting from operations

DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income – Original Class
Net investment income – Institutional Class
Total distributions

CAPITAL SHARE TRANSACTIONS:
Proceeds from shares subscribed – Original Class
Proceeds from shares subscribed – Institutional Class
Dividends reinvested – Original Class
Dividends reinvested – Institutional Class
Cost of shares redeemed – Original Class
Cost of shares redeemed – Institutional Class
Redemption fees retained – Original Class
Redemption fees retained – Institutional Class
Net increase (decrease) in net assets derived from capital share transactions

TOTAL INCREASE (DECREASE) IN NET ASSETS

NET ASSETS:
Beginning of period
End of period

Accumulated net investment income (loss), end of period

CHANGES IN SHARES OUTSTANDING:
Shares sold – Original Class
Shares sold – Institutional Class
Shares issued to holders as reinvestment of dividends – Original Class
Shares issued to holders as reinvestment of dividends – Institutional Class
Shares redeemed – Original Class
Shares redeemed – Institutional Class
Net increase (decrease) in shares outstanding

The accompanying notes are an integral part of these financial statements.

WWW.HENNESSYFUNDS.COM

FINANCIAL STATEMENTS – STATEMENTS OF CHANGES IN NET ASSETS

Hennessy Select SPARX						Hennessy Select SPARX
Japan Fund						Japan Smaller Companies Fund
Six Months Ended						Six Months Ended
April 30, 2010			Year Ended			April 30, 2010			Year Ended
(Unaudited)			October 31, 2009			(Unaudited)			October 31, 2009

$	(766	)	$	90,895		$	72,456		$	108,317
	(1,933,487	)		(12,474,339	)		1,230,516			(3,569,270	)
	5,323,211			21,195,083			(233,302	)		8,342,323
	3,388,958			8,811,639			1,069,670			4,881,370

	(59,461	)		(65,133	)		(675,389	)		—
	(43,905	)		(110,045	)		N/A			N/A
	(103,366	)		(175,178	)		(675,389	)		—

	8,783,742			14,425,238			2,878,099			10,635,183
	8,213,907			2,861,706			N/A			N/A
	58,305			63,659			654,011			—
	42,669			103,942			N/A			N/A
	(7,072,939	)		(5,945,945	)		(2,056,370	)		(11,060,855	)
	(7,889,894	)		(19,199,363	)		N/A			N/A
	102			2,875			508			3,412
	—			4,035			N/A			N/A
	2,135,892			(7,683,853	)		1,476,248			(422,260	)
	5,421,484			952,608			1,870,529			4,459,110


	53,843,043			52,890,435			16,200,680			11,741,570
$	59,264,527		$	53,843,043		$	18,071,209		$	16,200,680

$	(50,769	)	$	53,363		$	(365,044	)	$	237,889

	728,892			1,434,814			305,641			1,477,631
	672,198			275,108			N/A			N/A
	4,983			6,211			74,659			—
	3,628			10,082			N/A			N/A
	(589,453	)		(585,989	)		(229,340	)		(1,523,006	)
	(674,429	)		(1,837,630	)		N/A			N/A
	145,819			(697,404	)		150,960			(45,375	)

HENNESSY FUNDS 1-800-966-4354

Financial Highlights

Hennessy Select Large Value Fund

For an Original Class share outstanding throughout each period

	Six Months
	Ended			One Month
	April 30,			Ended
	2010			October 31,
	(Unaudited)			2009(1)
PER SHARE DATA:
Net asset value, beginning of period	$	18.88		$	19.49
Income from investment operations:
Net investment income (loss)		0.06			0.01
Net realized and unrealized gains (losses) on securities		2.56			(0.62	)
Total from investment operations		2.62			(0.61	)
Less Distributions:
Dividends from net investment income		(0.23	)		—
Dividends from net realized gains		—			—
Total distributions		(0.23	)		—
Redemption fees retained(4)		—			—
Net asset value, end of period	$	21.27		$	18.88
TOTAL RETURN		13.97	%(5)		(3.13	)%(5)

SUPPLEMENTAL DATA AND RATIOS:
Net assets, end of period (millions)	$	142.38		$	132.77
Ratio of expenses to average net assets:
Before expense reimbursement		1.38	%(6)		1.37	%(6)
After expense reimbursement(7)		1.33	%(6)		1.30	%(6)
Ratio of net investment income to average net assets
Before expense reimbursement		0.55	%(6)		0.28	%(6)
After expense reimbursement(7)		0.60	%(6)		0.35	%(6)
Portfolio turnover rate(8)		73	%(5)		10	%(5)

(1)	For the one month ended October 31, 2009. Effective October 31, 2009, the Fund changed its fiscal year end to October 31st from September 30th.

(2)

The financial highlights set forth for periods prior to March 23, 2009 represent the historical financial highlights of the Tamarack Value Fund, Class S shares. The assets of the Tamarack Value Fund were acquired by the Hennessy Select Large Value Fund on March 23, 2009. Prior to the reorganization, Tamarack Value Fund also offered Class A, Class C and R shares. At that time RBC Global Asset Management (U.S.), Inc. (formerly known as Voyageur Asset Management Inc.) ceased to be investment advisor and Hennessy Advisors, Inc. became investment advisor. The return of the Tamarack Value Fund, Class S shares during the period October 1, 2008 through March 23, 2009 was (33.09)%. The return of the Hennessy Select Large Value Fund, Original Class shares during the period March 23, 2009 through Sept ember 30, 2009 was 36.84%.

(3)	Per share net investment income (loss) has been calculated using the average daily shares method.

(4)	Amount is less than $0.01 or $(0.01).

(5)	Not annualized.

(6)	Annualized.

(7)	The Advisor had agreed to reimburse expenses in order to cap the Original Class share expenses. Please refer to Note 4 for more information.

(8)	Portfolio turnover is calculated on the basis of the Fund as a whole.

The accompanying notes are an integral part of these financial statements.

WWW.HENNESSYFUNDS.COM

FINANCIAL HIGHLIGHTS — HENNESSY SELECT LARGE VALUE FUND





Year Ended September 30,
2009(2)			2008			2007			2006			2005

$	21.80		$	43.12		$	41.74		$	45.78		$	45.05

	0.31			0.42	(3)		0.58	(3)		0.55	(3)		0.74
	(2.21	)		(7.43	)		5.04			3.07			4.35
	(1.90	)		(7.01	)		5.62			3.62			5.09

	(0.41	)		(0.78	)		(0.63	)		(0.61	)		(0.46	)
	—			(13.53	)		(3.61	)		(7.05	)		(3.90	)
	(0.41	)		(14.31	)		(4.24	)		(7.66	)		(4.36	)
	—			—			—			—			—
$	19.49		$	21.80		$	43.12		$	41.74		$	45.78

	(8.43	)%		(22.42	)%		14.19	%		9.10	%		11.42	%

$	138.34		$	174.23		$	269.37		$	291.66		$	366.95

	1.42	%		1.22	%		1.26	%		1.22	%		1.25	%
	1.17	%		1.02	%		1.03	%		1.05	%		1.01	%

	1.46	%		1.32	%		1.13	%		1.16	%		1.28	%
	1.71	%		1.52	%		1.36	%		1.33	%		1.52	%
	142	%		162	%		136	%		38	%		35	%

HENNESSY FUNDS 1-800-966-4354

Financial Highlights

Hennessy Select Large Value Fund

For an Institutional Class share outstanding throughout each period

	Six Months
	Ended
	April 30, 2010
	(Unaudited)
PER SHARE DATA:
Net asset value, beginning of period	$	18.92

Income from investment operations:
Net investment income (loss)		0.09
Net realized and unrealized gains (losses) on securities		2.57
Total from investment operations		2.66

Less distributions:
Dividends from net investment income		(0.28	)
Dividends from net realized gains		—
Total distributions		(0.28	)
Redemption fees retained(3)		—
Net asset value, end of period	$	21.30

TOTAL RETURN		14.13	%(4)

SUPPLEMENTAL DATA AND RATIOS:
Net assets, end of period (millions)	$	0.04
Ratio of expenses to average net assets:
Before expense reimbursement		1.21	%(5)
After expense reimbursement(6)		0.98	%(5)
Ratio of net investment income to average net assets
Before expense reimbursement		0.66	%(5)
After expense reimbursement(6)		0.89	%(5)
Portfolio turnover rate(7)		73	%(4)

(1)	For the one month ended October 31, 2009. Effective October 31, 2009, the Fund changed its fiscal year end to October 31st from September 30th.

(2)	Institutional Class shares commenced operations on March 23, 2009.

(3)	Amount is less than $0.01 or $(0.01).

(4)	Not annualized.

(5)	Annualized.

(6)	The Advisor has agreed to reimburse expenses in order to cap the Institutional Class share expenses. Please refer to Note 4 for more information.

(7)	Portfolio turnover is calculated on the basis of the Fund as a whole.

The accompanying notes are an integral part of these financial statements.

WWW.HENNESSYFUNDS.COM

FINANCIAL HIGHLIGHTS — HENNESSY SELECT LARGE VALUE FUND

One Month
Ended			Period Ended
October 31,			September 30,
2009(1)			2009(2)

$	19.53		$	14.25


	—	(3)		0.08
	(0.61	)		5.20
	(0.61	)		5.28


	—			—
	—			—
	—			—
	—			—
$	18.92		$	19.53

	(3.12	)%(4)		37.05	%(4)


$	0.03		$	0.03

	1.20	%(5)		26.18	%(5)
	0.98	%(5)		0.98	%(5)

	0.44	%(5)		(24.06	)%(5)
	0.66	%(5)		1.14	%(5)
	10	%(4)		142	%(4)

HENNESSY FUNDS 1-800-966-4354

Financial Highlights

Hennessy Select SPARX Japan Fund

For an Original Class share outstanding throughout each period

	Six Months
	Ended
	April 30,
	2010
	(Unaudited)
PER SHARE DATA:
Net asset value, beginning of period	$	11.38

Income from investment operations:
Net investment income (loss)		—	(2)
Net realized and unrealized gains (losses) on securities		0.79
Total from investment operations		0.79

Less distributions:
Dividends from net investment income		(0.02	)
Dividends from net realized gains		—
Total distributions		(0.02	)
Redemption fees retained		—
Net asset value, end of period	$	12.15

TOTAL RETURN		6.99	%(4)

SUPPLEMENTAL DATA AND RATIOS:
Net assets, end of period (millions)	$	31.95
Ratio of expenses to average net assets:
Before expense reimbursement		1.65	%(5)
After expense reimbursement(6)		1.41	%(5)
Ratio of net investment income to average net assets
Before expense reimbursement		(0.29	)%(5)
After expense reimbursement(6)		(0.05	)%(5)
Portfolio turnover rate(7)		7	%(4)

(1)

The financial highlights set forth for periods prior to September 18, 2009 represent the historical financial highlights of the SPARX Japan Fund. On September 18, 2009 Hennessy Advisors, Inc., became the investment advisor to the Fund and the Fund changed its name to Hennessy Select SPARX Japan Fund. In addition, the Investor Class shares were redesignated Original Class shares.

(2)	Amount is less than $0.01 or $(0.01).

(3)	Calculated based on average shares outstanding.

(4)	Not annualized.

(5)	Annualized.

(6)	The Advisor had agreed to reimburse expenses in order to cap the Original Class share expenses. Please refer to Note 4 for more information.

(7)	Portfolio turnover is calculated on the basis of the Fund as a whole.

The accompanying notes are an integral part of these financial statements.

WWW.HENNESSYFUNDS.COM

FINANCIAL HIGHLIGHTS — HENNESSY SELECT SPARX JAPAN FUND

Year Ended October 31,
2009(1)			2008			2007			2006			2005

$	9.73		$	16.24		$	17.20		$	17.41		$	13.28

	0.02			0.05			(0.03	)		(0.10	)(3)		(0.06	)(3)
	1.66			(6.56	)		(0.93	)		0.60			4.90
	1.68			(6.51	)		(0.96	)		0.50			4.84

	(0.03	)		—			—			(0.55	)		—	(2)
	—			—			—			(0.17	)		(0.71	)
	(0.03	)		—			—			(0.72	)		(0.71	)
	—	(2)		—	(2)		—			0.01			—
$	11.38		$	9.73		$	16.24		$	17.20		$	17.41

	17.36	%		(40.09	)%		(5.58	)%		2.64	%		38.36	%


$	28.29		$	15.86		$	19.54		$	26.23		$	23.49

	1.75	%		1.72	%		1.87	%		2.22	%		4.24	%
	1.24	%		1.25	%		1.45	%		1.50	%		1.50	%

	(0.34	)%		(0.10	)%		(0.62	)%		(1.27	)%		(3.14	)%
	0.17	%		0.37	%		(0.20	)%		(0.55	)%		(0.40	)%
	17	%		35	%		111	%		89	%		73	%

HENNESSY FUNDS 1-800-966-4354

Financial Highlights

Hennessy Select SPARX Japan Fund

For an Institutional Class share outstanding throughout each period

	Six Months
	Ended
	April 30,
	2010
	(Unaudited)
PER SHARE DATA:
Net asset value, beginning of period	$	11.44

Income from investment operations:
Net investment income (loss)		0.01
Net realized and unrealized gains (losses) on securities		0.79
Total from investment operations		0.80

Less distributions:
Dividends from net investment income		(0.02	)
Dividends from net realized gains		—
Total distributions		(0.02	)
Redemption fees retained		—
Net asset value, end of period	$	12.22

TOTAL RETURN		7.04	%(4)

SUPPLEMENTAL DATA AND RATIOS:
Net assets, end of period (millions)	$	27.31
Ratio of expenses to average net assets:
Before expense reimbursement		1.42	%(5)
After expense reimbursement(6)		1.32	%(5)
Ratio of net investment income to average net assets
Before expense reimbursement		(0.05	)%(5)
After expense reimbursement(6)		0.05	%(5)
Portfolio turnover rate(7)		7	%(4)

(1)

(2)	Amount is less than $0.01 or $(0.01).

(3)	Calculated based on average shares outstanding.

(4)	Not annualized.

(5)	Annualized.

(6)	The Advisor had agreed to reimburse expenses in order to cap the Institutional Class share expenses. Please refer to Note 4 for more information.

(7)	Portfolio turnover is calculated on the basis of the Fund as a whole.

The accompanying notes are an integral part of these financial statements.

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FINANCIAL HIGHLIGHTS — HENNESSY SELECT SPARX JAPAN FUND



Year Ended October 31,
2009(1)			2008			2007			2006			2005

$	9.78		$	16.33		$	17.27		$	17.44		$	13.31

	0.03			0.05			—	(2)		(0.06	)(3)		(0.02	)(3)
	1.66			(6.60	)		(0.94	)		0.61			4.87
	1.69			(6.55	)		(0.94	)		0.55			4.85

	(0.03	)		—			—			(0.56	)		—
	—			—			—			(0.17	)		(0.72	)
	(0.03	)		—			—			(0.73	)		(0.72	)
	—	(2)		—	(2)		—			0.01			—	(2)
$	11.44		$	9.78		$	16.33		$	17.27		$	17.44

	17.37	%		(40.11	)%		(5.44	)%		2.90	%		38.41	%


$	25.55		$	37.03		$	82.94		$	105.15		$	53.17

	1.75	%		1.72	%		1.67	%		1.66	%		3.63	%
	1.24	%		1.25	%		1.25	%		1.25	%		1.25	%

	(0.34	)%		(0.10	)%		(0.42	)%		(0.71	)%		(2.53	)%
	0.17	%		0.37	%		0.00	%		(0.30	)%		(0.15	)%
	17	%		35	%		111	%		89	%		73	%

HENNESSY FUNDS 1-800-966-4354

Financial Highlights

Hennessy Select SPARX Japan Smaller Companies Fund

For an Original Class share outstanding throughout each period

	Six Months
	Ended
	April 30,
	2010
	(Unaudited)
PER SHARE DATA:
Net asset value, beginning of period	$	9.74

Income from investment operations:
Net investment income (loss)		0.07
Net realized and unrealized gains (losses) on securities		0.57
Total from investment operations		0.64

Less distributions:
Dividends from net investment income		(0.42	)
Dividends from net realized gains		—
Total distributions		(0.42	)
Redemption fees retained		—	(4)
Net asset value, end of period	$	9.96

TOTAL RETURN		7.14	%(5)

SUPPLEMENTAL DATA AND RATIOS:
Net assets, end of period (millions)	$	18.07
Ratio of expenses to average net assets:
Before expense reimbursement		2.08	%(6)
After expense reimbursement(7)		1.82	%(6)
Ratio of net investment income to average net assets
Before expense reimbursement		0.70	%(6)
After expense reimbursement(7)		0.96	%(6)
Portfolio turnover rate		56	%(5)

(1)

The financial highlights set forth for periods prior to September 18, 2009 represent the historical financial highlights of the SPARX Japan Smaller Companies Fund. On September 18, 2009 Hennessy Advisors, Inc., became the investment advisor to the Fund and the Fund changed its name to Hennessy Select SPARX Japan Smaller Companies Fund.

(2)	The Fund commenced operations on August 31, 2007.

(3)	Calculated based on average shares outstanding.

(4)	Amount is less than $0.01 or $(0.01).

(5)	Not annualized.

(6)	Annualized.

(7)	The Advisor had agreed to reimburse expenses in order to cap the Original Class share expenses. Please refer to Note 4 for more information.

The accompanying notes are an integral part of these financial statements.

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FINANCIAL HIGHLIGHTS — HENNESSY SELECT SPARX JAPAN SMALLER COMPANIES FUND

Year Ended			Year Ended			Period Ended
October 31,			October 31,			October 31,
2009(1)			2008			2007(2)

$	6.87		$	10.98		$	10.00

	0.07			0.02	(3)		—	(4)
	2.80			(4.08	)		0.98
	2.87			(4.06	)		0.98

	—			(0.07	)		—
	—			—			—
	—			(0.07	)		—
	—	(4)		0.02			—
$	9.74		$	6.87		$	10.98

	41.78	%		(37.00	)%		9.80	%(5)


$	16.20		$	11.74		$	5.58

	3.10	%		4.47	%		9.73	%(6)
	1.60	%		1.60	%		1.60	%(6)

	(0.86	)%		(2.60	)%		(8.15	)%(6)
	0.64	%		0.26	%		(0.02	)%(6)
	138	%		55	%		13	%(5)

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Notes to the Financial Statements

April 30, 2010 (Unaudited)

1). ORGANIZATION

The Hennessy Select Large Value Fund (the “Large Value Fund,” formerly known as the Tamarack Value Fund) is organized as a separate investment portfolio or series of Hennessy Funds Trust, a Delaware statutory trust that was organized on September 17, 1992. Prior to July 1, 2005, the Hennessy Funds Trust was known as “The Henlopen Fund.” On March 23, 2009, Hennessy Advisors, Inc., became the investment advisor to the Large Value Fund. The Hennessy Funds Trust is an open-end, management investment company registered under the Investment Company Act of 1940, as amended. The Large Value Fund is a diversified portfolio. The Large Value Fund commenced operations on September 30, 1984.

The Hennessy Select SPARX Japan Fund (the “Japan Fund,” formerly known as the SPARX Japan Fund) and the Hennessy Select SPARX Japan Smaller Companies Fund (the “Japan Smaller Companies Fund,” formerly known as the SPARX Japan Smaller Companies Fund) are organized as separate investment portfolios or series of Hennessy SPARX Funds Trust, a Massachusetts business trust that was organized on July 24, 1995. From July 25, 2007 through September 17, 2009 the Hennessy SPARX Funds Trust name was “SPARX Asia Funds.” Prior to July 25, 2007, the Hennessy SPARX Funds Trust was known as “SPARX Funds Trust”. On September 18, 2009, Hennessy Advisors, Inc., became the investment advisor to the SPARX Japan Fund and SPARX Japan Smaller Companies Fund. The Hennessy SPARX Funds Trust is an open-end, management investment company registered under the Investment Company Act of 1940, as amended. The Japan Fund and Japan Smaller Companies Fund are each diversified portfolios. Although these funds will each be considered a “diversified” mutual fund, the fund may employ a relatively focused investment strategy and may hold securities of fewer issuers than other diversified funds. The Japan Fund commenced operations on October 31, 2003 and the Japan Smaller Companies Fund commenced operations on August 31, 2007.

The Large Value Fund, Japan Fund and Japan Smaller Companies Fund collectively represent the Hennessy Select Series Funds (the “Funds”).

The Large Value Fund and Japan Fund offer Original and Institutional Class shares. Each class of shares differs principally in its respective administration, shareholder servicing and sub-transfer agent expenses and sales charges, if any. Each class has identical rights to earnings, assets and voting privileges, except for class-specific expenses and exclusive rights to vote on matters affecting only individual classes. The Japan Smaller Companies Fund offers only Original Class shares.

2). SIGNIFICANT ACCOUNTING POLICIES

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NOTES TO THE FINANCIAL STATEMENTS

a).

Investment Valuation – Securities which are traded on a national or recognized stock exchange are valued at the last sale price on the securities exchange on which such securities are primarily traded. Exchange-traded securities for which there were no transactions that day and debt securities are valued at the most recent bid prices. Instruments with a remaining maturity of 60 days or less are valued on an amortized cost basis. When a price for an underlying security is not readily available or if a significant event has occurred that indicates the closing price of a security no longer represents the true value of that security, fair value pricing procedures have been adopted by the Board of Trustees of the Funds. Fair value pricing determinations are made in good faith in accordance with these procedures. There are nume rous criteria that will be given consideration in determining a fair value of a security. Some of these criteria are: trading volume of security and markets, value of other like securities and news events with direct bearing to security or market. Fair value pricing results in an estimated price that reasonably reflects the current market conditions in order to rate the portfolio holdings such that shareholder transactions receive a fair net asset value.

Fair valuing of foreign securities may be determined with the assistance of a pricing service using correlations between the movement of prices of such securities and indices of domestic securities and other appropriate indicators, such as closing market prices of relevant American Depositary Receipts or futures contracts. The effect of using fair value pricing is that the Funds’ NAV will reflect the affected portfolio securities’ value as determined in the judgment of the Board of Trustees or its designee instead of being determined by the market. Using a fair value pricing methodology to price securities may result in a value that is different from a security’s most recent closing price and from the prices used by other investment companies to ca lculate their net asset values and are considered level 2 prices in the fair valuation hierarchy. Because the Funds invest in foreign securities, the value of the Funds’ portfolio securities may change on days when you will not be able to purchase or redeem your shares.

Foreign securities are recorded in the financial statements after translation to U.S. dollars based on the applicable exchange rate at the end of the period. The Funds do not isolate that portion of the results of operations resulting from changes in the currency exchange rate from the fluctuations resulting from changes in the market prices of investments.

b).

Federal Income Taxes – Provision for federal income taxes or excise taxes has not been made since the Funds have elected to be taxed as a “regulated investment company” and intend to distribute substantially all taxable income to shareholders and otherwise comply with the provisions of the Internal Revenue Code applicable to regulated investment companies. Net investment income and realized gains and losses for federal income tax purposes may differ from that reported on the financial statements because of temporary book and tax basis differences. Temporary differences are primarily the result of the treatment of wash sales for tax reporting purposes. Distributions from net realized gains for book purposes may include short-term capital gains, which are included as ordinary income to shareholders for tax purposes.

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Accumulated Net

Paid In

Investment Income/(Loss)

Realized Gain/(Loss)

Capital

Large Value Fund	(120	)	120		—
Japan Fund	10,720		(10,720	)	—
Japan Smaller Companies Fund	130,305		(130,265	)	(40	)

The permanent differences primarily relate to foreign currency gain (loss) reclasses and adjustments related to passive foreign investment companies.

c).

Income and Expenses – Dividend income is recognized on the ex-dividend date or as soon as information is available to the Funds and interest income is recognized on an accrual basis. Income expenses (other than expenses attributable to a specific class), and realized and unrealized gains or losses on investments are allocated to each class of shares based on its respective net assets.

d).	Distributions to Shareholders – Dividends from net investment income and distributions of net realized capital gains for the Funds, if any, are declared and paid out annually, usually in November or December of each year.

e).

Security Transactions – Investment and shareholder transactions are recorded on the trade date. The Fund determines the gain or loss realized from the investment transactions by comparing the original cost of the security lot sold with the net sale proceeds. Discounts and premiums on securities purchased are accreted/amortized over the life of the respective security.

f).

g).

Share Valuation – The net asset value (“NAV”) per share of each Fund is calculated by dividing the sum of the value of the securities held, plus cash or other assets, minus all liabilities (including estimated accrued expenses) by the total number of shares outstanding, rounded to the nearest cent. The Funds’ shares will not be priced on the days on which the NYSE is closed for trading. The offering and redemption price per share for each Fund is equal to each Fund’s net asset value per share. The Japan Fund and Japan Smaller Companies Funds charged a 2.00% redemption fee on shares held less than 60 days through January 29, 2010. These fees were retained by each Fund and treated as additional paid-in-capital and allocated to each respective class of shares (if applicable).

h).	Foreign Currency – Values of investments denominated in foreign currencies are converted into U.S. dollars using the spot market rate of exchange at the time of valuation. Purchases and sales of investments and income are

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NOTES TO THE FINANCIAL STATEMENTS

translated into U.S. dollars using the spot market rate of exchange prevailing on the respective dates of such transactions. The effect of changes in foreign exchange rates on realized and unrealized security gains and losses is reflected as a component of such gains or losses. Foreign investments present additional risks due to currency fluctuations, economic and political factors, lower liquidity, government regulations, differences in accounting standards and other factors.

i).

Forward Contracts – The Funds may enter into forward currency contracts to reduce their exposure to changes in foreign currency exchange rates on their foreign holdings and to lock in the U.S. dollar cost of firm purchase and sale commitments for securities denominated in foreign currencies. A forward currency contract is a commitment to purchase or sell a foreign currency at a future date at a negotiated forward rate. The gain or loss arising from the difference between the U.S. dollar cost of the original contract and the value of the foreign currency in U.S. dollars upon closing of such contract is included in net realized gain or loss from foreign currency transactions.

The Funds may invest in, or enter into, derivatives, such as options, futures contracts, options on futures contracts and swaps, for a variety of reasons, including to hedge certain risks, to provide a substitute for purchasing or selling particular securities or to increase potential income gain. Derivatives may provide a cheaper, quicker or more specifically focused way for a Fund to invest than “traditional” securities would. The main purpose of utilizing these derivative instruments is for hedging purposes.

j).

Repurchase Agreements – The Funds may enter into repurchase agreements with member banks or security dealers of the Federal Reserve whom the investment advisor deems creditworthy. The repurchase price generally equals the price paid by the Fund plus interest negotiated on the basis of current short-term rates.

Securities pledged as collateral for repurchase agreements are held by the custodian bank until the respective agreements mature. Provisions of the repurchase agreements ensure that the market value of the collateral, including accrued interest thereon, is sufficient, in the event of default of the counterparty. If the counterparty defaults and the value of the collateral declines or if the counterparty enters an insolvency proceeding, realization of the collateral by the Fund may be delayed or limited.

k).

Accounting for Uncertainty in Income Taxes – The Funds have adopted financial reporting rules regarding recognition and measurement of tax positions taken or expected to be taken on a tax return. The Funds have reviewed all open tax years and major jurisdictions and concluded that there is no impact on the Funds’ net assets and no tax liability resulting from unrecognized tax benefits relating to uncertain income tax positions taken or expected to be taken on a tax return. As of April 30, 2010, open Federal and state tax years for the Large Value Fund include the tax years ended September 30, 2006 through 2009 and the tax period ended October 31, 2009. As of April 30, 2010, open Federal and state tax years for the Japan Fund and Japan Smaller Companies Fund include the tax years ended October 3 1, 2006 through 2009.

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l).

m).

Events Subsequent to the Fiscal Period End – The Funds have adopted financial reporting rules regarding subsequent events which requires an entity to recognize in the financial statements the effects of all subsequent events that provide additional evidence about conditions that existed at the date of the balance sheet. Management has evaluated the Funds’ related events and transactions that occurred subsequent to April 30, 2010, through the date of issuance of the Funds’ financial statements. At its quarterly board meeting held on June 4, 2010, the Board of Trustees approved a 10 basis point shareholder servicing fee on the Original Class shares of the Japan Fund and Japan Smaller Companies Fund. The effective date of the shareholder servicing fee was June 1, 2010.

n).

3). INVESTMENT TRANSACTIONS

Purchases and sales of investment securities (excluding government and short-term investments) during the six months ended April 30, 2010 were as follows:

	Purchases	Sales
Large Value Fund	$99,392,108	$105,909,697
Japan Fund	$ 3,598,908	$ 5,545,148
Japan Smaller Companies Fund	$ 9,264,527	$ 8,387,798

There were no purchases or sales of long term U.S. Government securities in the Funds during the six months ended April 30, 2010.

4). INVESTMENT MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES

Hennessy Advisors, Inc. (the “Advisor”) is the Advisor of the Funds. The Advisor provides the Funds with investment management services under an Investment Advisory Agreement. The Advisor furnishes all investment advice, office space, facilities, and provides most of the personnel needed by the Funds. As compensation for its services, the Advisor is entitled to a monthly fee from each Fund. The fee is based upon the average daily net assets of the Funds at the annual rate of:

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NOTES TO THE FINANCIAL STATEMENTS

	Large Value Fund	0.85%
	Japan Fund	1.00%
	Japan Smaller Companies Fund	1.20%

The Advisor has delegated the day to day management of the Large Value Fund to a Sub-Advisor, RBC Global Asset Management (U.S.), Inc. (“RBC”). The Advisor has delegated the day to day management of the Japan and Japan Smaller Companies Funds to a Sub-Advisor, SPARX Asset Management Co. Ltd. (“SPARX”). The Advisor pays the Sub-Advisor fees for each of the Funds from its own assets and these fees are not an additional expense of the Funds.

The Advisor has agreed to absorb expenses to the extent that the total annual operating expenses (excluding all federal, state and local taxes, interest, brokerage commissions, acquired fund fees and expenses and other costs incurred in connection with the purchase and sale of securities and extraordinary items) do not exceed 1.30% and 0.98% of the Large Value Fund’s net assets for the Original Class and Institutional Class shares, respectively. The expense limitation agreement for the Original Class shares of the Large Value Fund expired on March 31, 2010. The expense limitation agreement for the Institutional Class shares of the Large Value Fund can only be terminated by the Board of Trustees. Additionally, the Advisor had agreed to waive its fees an d absorb expenses to the extent that the total annual operating expenses (excluding all federal, state and local taxes, interest, brokerage commissions, acquired fund fees and expenses and other costs incurred in connection with the purchase and sale of securities and extraordinary items) do not exceed 1.25% of the Japan Fund’s net assets for both the Original Class shares and Institutional Class shares and 1.60% of the net assets of the Japan Smaller Companies Fund, Original Class shares. The expense limitation agreements for the Japan Fund and the Japan Smaller Companies Fund expired on February 28, 2010. For a period of three years after the year in which the Advisor waives or reimburses expenses, the Advisor may seek reimbursement from the Fund to the extent that total annual fund operating expenses are less than the expense limitation in effect at the time of the waiver or reimbursement. The Advisor reimbursed expenses of $38,444, $50,340 and $19,527 for the Large Value, Japa n and Japan Smaller Companies Funds, respectively, for the six months ended April 30, 2010. As of April 30, 2010, cumulative expenses subject to potential recovery to the aforementioned conditions and year of expiration are as follows:

	Oct. 31, 2011	Oct. 31, 2012	Oct. 31, 2013	Total
Large Value Fund – Original Class	$91,061	$7,641	$38,444	$137,146
Large Value Fund – Institutional Class	$ 2,239	$ 6	$ —	$ 2,245
Japan Fund – Original Class	$ —	$ —	$37,425	$ 37,425
Japan Fund – Institutional Class	$ —	$ —	$12,915	$ 12,915
Japan Smaller Companies Fund – Original Class	$ —	$ —	$19,527	$ 19,527

The Board of Trustees has approved a Shareholder Servicing Plan for the Original Class shares of the Large Value Fund which was instituted to compensate the Advisor for the non-investment management services it provides to the Fund. The Plan provides for a monthly fee paid to the Advisor at an annual rate of 0.10% of the average daily net assets of the Large Value Fund. On June 1, 2010, the Japan and Japan Smaller Companies Funds adopted a shareholder servicing plan; however, they did not incur any shareholder servicing fees during the six months ended April 30, 2010.

HENNESSY FUNDS 1-800-966-4354

The Funds have entered into agreements with various brokers, dealers and financial intermediaries in connection with the sale of shares of the Funds. The agreements provide for periodic payments by the Funds to the brokers, dealers and financial intermediaries for providing certain shareholder maintenance services (sub-transfer agent expenses). These shareholder services include: the pre-processing and quality control of new accounts, shareholder correspondence, answering customer inquiries regarding account status and facilitating shareholder telephone transactions. Fees paid by the Large Value, Japan and Japan Smaller Companies Funds to various brokers, dealers and financial intermediaries for the fiscal period ended October 31, 2009, were $51,785, $40,210 , and $14,261, respectively.

U.S. Bancorp Fund Services, LLC (the “Administrator”) acts as the Funds’ Administrator under an Administration Agreement. Administrative services under this agreement include custody, distribution, fund accounting, fund administration and transfer agent services. In addition, the Administrator prepares various federal and state regulatory filings, reports and returns for the Fund; prepares reports and materials to be supplied to the directors; monitors the activities of the Funds’ custodian, transfer agent and accountants; coordinates the preparation and payment of the Funds’ expenses and reviews the Funds’ expense accruals. Fees paid to U.S. Bancorp Fund Services, LLC for the six month period ended April 30, 2010, were $176,113, $70 ,799 and $19,253, for the Large Value, Japan and Japan Smaller Companies Funds, respectively. The Administrator has voluntarily waived all or a portion of its administration fees allocated to the Institutional Class shares of the Large Value Fund. The administration fees voluntarily waived by the Administrator during the six months ended April 30, 2010 were $39.

Quasar Distributors, LLC (“Quasar”) acts as the Funds’ principal underwriter in a continuous public offering of the Funds’ shares. Quasar is an affiliated company of U.S. Bank, N.A.

5). FEDERAL TAX INFORMATION

The following balances for the Funds are as of October 31, 2009, the Funds’ most recent fiscal year end:

							Japan
	Large						Smaller
	Value			Japan			Companies
	Fund			Fund			Fund
Cost of Investments for tax purposes	$	114,795,217		$	59,643,948		$	13,458,638
Gross tax unrealized appreciation		22,806,298			5,599,157			3,444,166
Gross tax unrealized depreciation		(7,123,722	)		(11,602,360	)		(1,012,116	)
Net tax unrealized appreciation
(depreciation) on investments	$	15,682,576		$	(6,003,203	)	$	2,432,050
Undistributed ordinary income	$	1,390,728		$	53,363		$	675,389
Undistributed long-term capital gains		—			—			—
Total distributable earnings	$	1,390,728		$	53,363		$	675,389
Other accumulated gains (losses)	$	(65,540,134	)	$	(27,995,609	)	$	(3,818,529	)
Total accumulated earnings (losses)	$	(45,466,830	)	$	(33,945,449	)	$	(711,090	)

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NOTES TO THE FINANCIAL STATEMENTS

At October 31, 2009, the Large Value Fund had tax basis capital losses of $62,540,134, to offset future capital gains, the use of a portion of which is limited by IRS regulations. Of such losses, $31,599,923 expire October 31, 2016 and $30,940,211 expire on October 31, 2017. Additionally, the Large Value Fund had no post-October loss deferrals as of October 31, 2009.

At October 31, 2009, the Japan Fund had tax basis capital losses of $27,995,609, to offset future capital gains, the use of a portion of which is limited by IRS regulations. Of such losses, $967,738 expire October 31, 2014, $5,345,663 expire on October 31, 2015, $6,231,544 expire October 31, 2016 and $15,450,664 expire October 31, 2017. Additionally, the Japan Fund had no post-October loss deferrals as of October 31, 2009.

At October 31, 2009, the Japan Smaller Companies Fund had tax basis capital losses of $3,818,529, to offset future capital gains, the use of a portion of which is limited by IRS regulations. Of such losses, $6,584 expire October 31, 2015, $69,006 expire October 31, 2016 and $3,742,939 expire October 31, 2017. Additionally, the Japan Smaller Companies Fund had no post-October loss deferrals as of October 31, 2009.

The tax character of distributions paid during 2010 and 2009 for the Funds were as follows:

	Six Months Ended
	April 30, 2010		One Month Ended		Year Ended
Large Value Fund	(Unaudited)		October 31, 2009*		September 30, 2009
Ordinary income	$	1,608,137	$	—	$	3,122,632
Long-term capital gain		—		—		—
	$	1,608,137	$	—	$	3,122,632

The Large Value Fund changed its fiscal year end to October 31 from September 30.

	Six Months Ended
	April 30, 2010		Year Ended
Japan Fund	(Unaudited)		October 31, 2009
Ordinary income	$	103,366	$	175,178
Long-term capital gain		—		—
	$	103,366	$	175,178

	Six Months Ended
Japan Smaller	April 30, 2010		Year Ended
Companies Fund	(Unaudited)		October 31, 2009
Ordinary income	$	675,389	$	—
Long-term capital gain		—		—
	$	675,389	$	—

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6). FUND REORGANIZATION

On March 23, 2009 the shareholders of the Tamarack Value Fund approved the agreement and plan of reorganization providing for the transfer of assets of the Tamarack Value Fund to the Hennessy Select Large Value Fund and the assumption of the liabilities of the Tamarack Value Fund by the Hennessy Select Large Value Fund. The following table illustrates the specifics of the reorganization:

Acquired	Shares issued to	Acquiring
Fund	Shareholders of	Fund	Combined	Tax Status
Net Assets	Acquired Fund	Net Assets	Net Assets	of Transfer
$106,344,111(1)	7,462,745	—	$106,344,111	Non-taxable

(1)

Includes accumulated realized losses and unrealized depreciation in the amounts of ($22,268,596) and ($20,869,681) respectively.

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EXPENSE EXAMPLE

Expense Example

April 30, 2010 (Unaudited)

Actual Expenses

Hypothetical Example for Comparison Purposes

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help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

	Beginning	Ending	Expenses Paid
	Account Value	Account Value	During Period(1)
Original Class	11/1/09	4/30/10	11/1/09 – 4/30/10

Actual
Large Value Fund – Original Class	$1,000.00	$1,139.70	$7.06
Japan Fund – Original Class	$1,000.00	$1,069.90	$7.24
Japan Smaller Companies
Fund – Original Class	$1,000.00	$1,071.40	$9.35

Hypothetical (5% return
before expenses)
Large Value Fund – Original Class	$1,000.00	$1,018.20	$6.66
Japan Fund – Original Class	$1,000.00	$1,017.80	$7.05
Japan Smaller Companies
Fund – Original Class	$1,000.00	$1,015.77	$9.10

(1)	Expenses are equal to the Large Value Fund’s expense ratio of 1.33%, the Japan Fund’s expense ratio of 1.41%, and the Japan Smaller Companies Fund’s expense ratio of 1.82%, multiplied by the average account value over the period, multiplied by 181/365 days (to reflect one-half year period.)

	Beginning	Ending	Expenses Paid
	Account Value	Account Value	During Period(2)
Institutional Class	11/1/09	4/30/10	11/1/09 – 4/30/10

Actual
Large Value Fund – Institutional Class	$1,000.00	$1,022.01	$4.91
Japan Fund – Institutional Class	$1,000.00	$1,070.40	$6.78

Hypothetical (5% return
before expenses)
Large Value Fund – Institutional Class	$1,000.00	$1,003.10	$4.87
Japan Fund – Institutional Class	$1,000.00	$1,018.25	$6.61

(2)	Expenses are equal to the Large Value Fund’s expense ratio of 0.98%, and the Japan Fund’s expense ratio of 1.32%, multiplied by the average account value over the period, multiplied by 181/365 days (to reflect one-half year period.)

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ADDITIONAL INFORMATION

How to Obtain a Copy of the Fund’s Proxy Voting Policy and Proxy Voting Records

Quarterly Filings on Form N-Q

The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Fund’s Form N-Q will be available on the SEC’s website at www.sec.gov. The Fund’s Form N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC and information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. Information included in the Fund’s N-Q will also be available upon request by calling 1-800-966-4354.

Federal Tax Distribution Information (Unaudited)

The Large Value, Japan and Japan Smaller Companies Funds designate 0%, 0% and 0%, respectively, of the dividends declared from net investment income during the year ended October 31, 2009*, as qualified dividend income under the Jobs Growth and Tax Reconciliation Act of 2003.

For the year ended October 31, 2009*, 0%, 0% and 0%, of the ordinary distributions paid by the Large Value, Japan and Japan Smaller Companies Funds qualify for the dividend received deduction available to corporate shareholders.

*	Effective October 31, 2009, the Large Value Fund changed its fiscal year end to October 31st from September 30th. The percentages listed for the Large Value Fund are for the one month period ended October 31, 2009.

HENNESSY FUNDS 1-800-966-4354

Board Approval of Continuation of

Investment Advisory Agreement

At its meeting on March 3, 2010, the Board of Directors (the “Board”) of The Hennessy Funds, Inc. and its two series, the Hennessy Balanced Fund (the “Balanced Fund”) and the Hennessy Total Return Fund (the “Total Return Fund”), The Hennessy Mutual Funds, Inc. and its three series, the Hennessy Cornerstone Growth Fund (the “Growth Fund”), the Hennessy Cornerstone Value Fund (the “Value Fund”), and the Hennessy Focus 30 Fund (the “Focus 30 Fund”), The Hennessy Funds Trust which includes the Hennessy Cornerstone Growth Fund, Series II (the “Growth II Fund”), Hennessy Cornerstone Large Growth Fund (the “Large Growth Fund”), and the Hennessy Select Large Value Fund (the “Large Value” Fund), and the Hennessy SPARX Funds Trust and its two series, the Hennessy Select SPARX Japan Fund (the “Japan Fund”) and the Hennessy Select SPARX Japan Smaller Companies Fund ( the “Japan Smaller Companies Fund” or collectively with the Growth, Growth II, Value, Focus 30, Total Return, Balanced, Large Value and Large Growth funds, the “Funds”) including the Directors who are not “interested persons” (as defined in the Investment Company Act of 1940) of the Funds’ voted to re-approve the current investment advisory and sub-advisory agreements (the “Advisory Agreements”) for the Funds. The Board reviewed and discussed the specific services provided by Hennessy Advisors, Inc. (the “Advisor”). The Advisor:

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Provides oversight of the sub-advisors for Large Value Fund, Japan Fund and Japan Smaller Companies Fund. The sub-advisors for those three Funds provide portfolio management, including directing the trading of securities.

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Pays half of the salary and payroll expenses of the Funds’ Chief Compliance Officer.

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Oversees distribution of the Funds through third-party broker/dealers and independent financial institutions such as Charles Schwab, Inc., Fidelity, TD Waterhouse and Pershing. The Advisor participates in “no transaction fee” (“NTF”) programs with these companies, which allows customers to purchase the Funds through third party distribution channels without paying a transaction fee. The Advisor pays a portion of the fees charged by these third party distributors.

WWW.HENNESSYFUNDS.COM

BOARD APPROVAL OF CONTINUATION OF INVESTMENT ADVISORY AGREEMENT

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Oversee those third party service providers that support the Funds in providing fund accounting, fund administration, fund distribution, transfer agency and custodial services.

The Board also: (i) compared the performance of each Fund to benchmark indices over various periods of time and concluded that the performance of each Fund warranted the continuation of the Advisory Agreement; (ii) compared the expense ratios of funds similar in asset size and investment objective to each of the Funds and concluded the actual or projected expenses of each Fund were reasonable and warranted continuation of the Advisory Agreement; (iii) considered the fees charged by Hennessy Advisors, Inc. to those of funds similar in asset size and investment objective to each of the Funds and concluded the advisory fees of each Fund were reasonable and warranted continuation of the Advisory Agreement; (iv) considered the profitability of Hennessy Advisors, Inc. with respect to each Fund and the profitability of the Sub-Advisors with respect to the Select Series Funds and concluded the profits were reasonable and not excessive when compared to profitability guidelines set forth in relevant court cases; (v) considered the high level of professionalism and knowledge, along with an extremely low level of turnover, of the employees of the Advisor; and (vi) considered that Neil Hennessy was named one of the top 100 portfolio managers in the nation by Barron’s from 2003 through 2008 (there was no list in 2009).

The Board reviewed the Funds’ expense ratios and comparable expense ratios for funds like the ten funds being considered for contract renewal by Hennessy Advisors, Inc. The Board used data from Lipper as presented in the charts in the Board Materials showing funds similar in nature to the Hennessy Funds (Mid-Cap Blend, Small Cap Blend, etc.). The Board determined that the expense ratios of the Funds fall within the range of the ratios of other funds in their classification. The Board also referenced the Advisor’s Form ADV and copies of the current Investment Advisory Agreements. All of the factors above were considered separately by the non-interested Directors in an executive session during which management of the Advisor was not present. & #160;The factors were viewed in their totality by the Board, with no single factor being the principal or determinative factor in the Board’s determination of whether to approve the continuation of the Advisory Agreements. Based on the factors discussed above, the Board, including all Independent Directors, recommended continuation of the Advisory Agreements.

HENNESSY FUNDS 1-800-966-4354

For information, questions

or assistance, please call

The Hennessy Funds

1-800-966-4354 or 1-415-899-1555

INVESTMENT ADVISOR	TRUSTEES
Hennessy Advisors, Inc.	Neil J. Hennessy
7250 Redwood Blvd., Suite 200	Robert T. Doyle
Novato, California 94945	J. Dennis DeSousa
	Gerald P. Richardson
ADMINISTRATOR, TRANSFER
AGENT, DIVIDEND PAYING	COUNSEL
AGENT & SHAREHOLDER	Foley & Lardner LLP
SERVICING AGENT	777 East Wisconsin Avenue
U.S. Bancorp Fund Services, LLC	Milwaukee, Wisconsin 53202-5306
P.O. Box 701
Milwaukee, Wisconsin 53201-0701	INDEPENDENT REGISTERED
	PUBLIC ACCOUNTING FIRM
CUSTODIAN	KPMG LLP
U.S. Bank N.A.	777 East Wisconsin Avenue, 15th Floor
Custody Operations	Milwaukee, Wisconsin 53202
1555 North River Center Dr., Suite 302
Milwaukee, Wisconsin 53212	DISTRIBUTOR
	Quasar Distributors, LLC
	615 East Michigan Street
	Milwaukee, Wisconsin 53202

WWW.HENNESSYFUNDS.COM

This report has been prepared for shareholders and may be distributed to others only if preceded or accompanied by a current prospectus.

Item 2. Code of Ethics.

Not applicable for semi-annual reports.

Item 3. Audit Committee Financial Expert.

Not applicable for semi-annual reports.

Item 4. Principal Accountant Fees and Services.

Not applicable for semi-annual reports.

Item 5. Audit Committee of Listed Registrants.

Not applicable to registrants who are not listed issuers (as defined in Rule 10A-3 under the Securities Exchange Act of 1934).

Item 6. Investments.

Schedule of Investments is included as part of the report to shareholders filed under Item 1 of this Form.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable to open-end investment companies.

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

Not applicable to open-end investment companies.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not applicable to open-end investment companies.

Item 10. Submission of Matters to a Vote of Security Holders.

Not Applicable.

Item 11. Controls and Procedures.

(a)

The Registrant’s Chief Executive Officer and Treasurer have reviewed the Registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “Act”)) as of a date within 90 days of the filing of this report, as required by Rule 30a-3(b) under the Act and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934. Based on their review, such officers have concluded that the disclosure controls and procedures are effective in ensuring that information required to be disclosed in this report is appropriately recorded, processed, summarized and reported and made known to them by others within the Registrant and by the Registrant’s service provider.

(b)

There were no changes in the Registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting.

Item 12. Exhibits.

(a)	(1) Any code of ethics or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy Item 2 requirements through filing an exhibit. Not Applicable

(2) A separate certification for each principal executive and principal financial officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. Filed herewith.

(3) Any written solicitation to purchase securities under Rule 23c-1 under the Act sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons. Not applicable to open-end investment companies.

(b)	Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. Furnished herewith.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant) Hennessy Funds Trust.

By (Signature and Title)* /s/Neil J. Hennessy

Neil J. Hennessy, Principal Executive Officer

Date July 6, 2010

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By (Signature and Title)* /s/Neil J. Hennessy

Neil J. Hennessy, Principal Executive Officer

Date July 6, 2010

By (Signature and Title)* /s/Teresa M. Nilsen

Teresa M. Nilsen, Treasurer

Date July 6, 2010

Hennessy Japan Fund Institutional Class (HJPIX) N-CSRSCertified semi-annual shareholder report (management investment company)