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Correspondence 0000897069-23-000755 from HENNESSY FUNDS TRUST (CIK 0000891944)

HENNESSY FUNDS TRUST (CIK 0000891944)
Date: June 15, 2023 · CIK: 0000891944 · Accession: 0000897069-23-000755

AI Filing Summary & Sentiment

File numbers found in text: 811-07168

Date
June 15, 2023
Author
Not clearly detected
Form
CORRESP
Company
HENNESSY FUNDS TRUST (CIK 0000891944)

Letter

Via EDGAR System Division of Investment Management Washington, D.C. 20549 Re: Hennessy Funds Trust (File Nos. 811-07168 and 033-52154) Preliminary Proxy Statement on Schedule 14A, Filed June 1, 2023

Dear Ms. Marquigny:

Our client, Hennessy Funds Trust (the “Company”), filed the above referenced Preliminary Proxy Statement on Schedule 14A on June 1, 2023 (the “Proxy Statement”), on behalf of the Hennessy Stance ESG ETF (the “ETF”). On behalf of the Company, set forth below are the Company’s responses to oral comments of the Staff of the Securities and Exchange Commission regarding the Proxy Statement. The numbered items set forth below express (in bold italics) the oral comments of the Staff, and following such comments are the Company’s responses (in regular type). Capitalized terms not defined herein have the meanings ascribed to them in the Proxy Statement.

1. In the Shareholder Letter, please revise the last sentence of the second paragraph to clarify that, with respect to Proposal 2, shareholders are relinquishing their right to vote on the hiring or removal of sub-advisors, except in cases where there is a conflict of interest or an increase in shareholder fees and expenses. Please also disclose the conditions and benefits to the ETF associated with operating under a “manager of managers” arrangement and under what circumstances the ETF is permitted to do so.

Response: The requested disclosure has been made, by revising the language to read as follows (new language is underlined): “The enclosed Proxy Statement also contains information about the Proposal for approval for the Fund to operate under a “manager of managers” arrangement, which would allow greater flexibility with respect to changing sub-advisory agreements as the Adviser would be able to enter into new sub-advisory agreements and materially amend existing sub-advisory agreements without obtaining shareholder approval and incurring the expense of convening a special meeting of shareholders for that purpose. The Adviser previously received “manager of managers” exemptive relief from the Securities and Exchange Commission (“SEC”) for the Fund, however, the Adviser is only permitted to rely on the “manager of managers” exemptive relief from the SEC if shareholders first approve the “manager of managers” arrangement. The approval of the “manager of managers” arrangement would result in shareholders giving up their right to vote on approving a new sub-advisory agreement or amending an existing sub-advisory agreement, except in cases where there is a conflict of interest present or where a new sub-advisory agreement or an amendment to an existing sub-advisory agreement would result in an increase in shareholder fees and expenses.

AUSTIN

BOSTON

CHICAGO

DALLAS

DENVER

DETROIT

HOUSTON

JACKSONVILLE

LOS ANGELES

MADISON

MEXICO CITY

MIAMI

MILWAUKEE

NEW YORK

ORLANDO

SACRAMENTO

SALT LAKE CITY

SAN DIEGO

SAN FRANCISCO

SILICON VALLEY

TALLAHASSEE

TAMPA

WASHINGTON, D.C.

BRUSSELS

TOKYO

Ms. Marquigny

U.S. Securities and Exchange Commission

June 15, 2023

Page 2

2. In the Shareholder Letter, please revise the fourth paragraph to include a summary of any potential changes to the ETF’s investment strategy, portfolio managers or management that will occur if shareholders approve the Proposals. If no such changes will result, please include a statement to this effect.

Response: The requested disclosure has been made, by revising the language to read as follows (new language is underlined): “Importantly, approval of the Proposals will not result in any increase in shareholder fees or expenses or any changes to the Fund’s investment strategy, portfolio managers, or management.”

3. In the Shareholder Letter, please revise the last paragraph to disclose the date and time by which shareholder votes must be received in order to be counted.

Response: The requested disclosure has been made, by adding the following language (new language is underlined): “Your vote is important regardless of the number of shares you own. To assure your representation at the Meeting, please follow the instructions on the enclosed proxy ballot whether or not you expect to be present at the Meeting. You may vote over the Internet or by telephone until 11:59 p.m. Pacific Time on July 13, 2023. Votes provided through the mail via a completed traditional proxy card must be received by July 13, 2023. A proxy given pursuant to this solicitation may be revoked at any time before it is voted. If you are a record holder, you may revoke your proxy and change your vote by: (1) the timely delivery of a duly executed proxy bearing a later date; (2) providing timely written notice of revocation to the Fund’s Secretary at the Fund’s principal executive offices located at 7250 Redwood Boulevard, Suite 200, Novato, California 94945; or (3) attending the Special Meeting and giving oral notice of your intention to vote in person. If you are the beneficial owner of shares held in street name, you may revoke your proxy and change your vote: (1) by submitting new voting instructions to your broker, bank or other nominee in accordance with their voting instructions, or (2) if you have obtained a legal proxy from your bank, broker or other nominee giving you the right to vote your shares in person, by attending the Special Meeting, presenting the completed legal proxy to the Fund and voting in person. You should be aware that simply attending the Special Meeting will not in and of itself constitute a revocation of your proxy.”

4. In the Shareholder Letter, please revise the last sentence in the last paragraph to clarify that shareholders may revoke their proxy regardless of whether they attend the Meeting in-person.

Response: The requested disclosure has been made, by revising the language to read as follows (new language is underlined): “Your vote is important regardless of the number of shares you own. To assure your representation at the Meeting, please follow the instructions on the enclosed proxy ballot whether or not you expect to be present at the Meeting. You may vote over the Internet or by telephone until 11:59 p.m. Pacific Time on July 13, 2023. Votes provided through the mail via a completed traditional proxy card must be received by July 13, 2023. A proxy given pursuant to this solicitation may be revoked at any time before it is voted. If you are a record holder, you may revoke your proxy and change your vote by: (1) the timely delivery of a duly executed proxy bearing a later date; (2) providing timely written notice of revocation to the Fund’s Secretary at the Fund’s principal executive offices located at 7250 Redwood Boulevard, Suite 200, Novato, California 94945; or (3) attending the Special Meeting and giving oral notice of your intention to vote in person. If you are the beneficial owner of shares held in street name, you may revoke your proxy and change your vote: (1) by submitting new voting instructions to your broker, bank or other nominee in accordance with their voting instructions, or (2) if you have obtained a legal proxy from your bank, broker or other nominee giving you the right to vote your shares in person, by attending the Special Meeting, presenting the completed legal proxy to the Fund and voting in person. You should be aware that simply attending the Special Meeting will not in and of itself constitute a revocation of your proxy.”

Ms. Marquigny

U.S. Securities and Exchange Commission

June 15, 2023

Page 3

5. In the Notice of Special Meeting, please fix the hyperlink and supplementally confirm that the hyperlink is correct and will direct shareholders to the correct web address.

Response: We supplementally confirm that the hyperlink is correct as is and will be made active once the proxy materials have been posted to the website. Once active, shareholders will be directed to the correct website upon clicking the hyperlink.

6. In the Questions and Answers section, please restate the second to last sentence in the second paragraph under “Why am I being asked to approve the New Sub-Advisory Agreement?” in plain English.

Response: The requested change has been made, by revising the sentence to read as follows (new language is underlined): “The Transaction is expected to be completed on or around June 30, 2023 (the “Closing Date”), subject to the satisfaction of customary closing conditions. These conditions include, among others, the requirement that a specified number of VA clients consent to the change of control, that the representations and warranties of the parties are true, correct and complete, and that the parties have in all material respects performed and complied with all of their covenants and agreements.”

7. In the Questions and Answers section, please state in the last paragraph under “Why am I being asked to approve the New Sub-Advisory Agreement?” who will be the ETF’s interim sub-advisor on June 30, 2023 if shareholders do not approve the New Sub-Advisory Agreement.

Response: The requested disclosure has been made, by adding the following language: “If the Fund’s shareholders do not approve the New-Sub-Advisory Agreement by the Closing Date, VA will continue to serve as the Fund’s investment sub-adviser under the Interim Sub-Advisory Agreement (as discussed below).”

8. In the Questions and Answers section, under “Why am I being asked to approve a “manager of managers” arrangement?”, please clarify that shareholders must approve the “manager of managers” arrangement before the Adviser is permitted to rely on exemptive relief from the SEC.

Response: The requested disclosure has been made, by adding the following language (new language is underlined): “The Adviser previously received “manager of managers” exemptive relief from the Securities and Exchange Commission (the “SEC”) for the Fund, however, the Adviser is only permitted to rely on the “manager of managers” exemptive relief from the SEC if shareholders first approve the “manager of managers” arrangement.”

Ms. Marquigny

U.S. Securities and Exchange Commission

June 15, 2023

Page 4

9. In the Questions and Answers section, under “How will the Transaction or the approval of the New Sub-Advisory Agreement affect me as the Fund shareholder?”, please clarify that shareholders are not being asked to approve the Transaction or the termination of the Current Sub-Advisory Agreement and are only being asked to vote on the New Sub-Advisory Agreement following the close of the Transaction.

Response: The requested change has been made, by adding the following language: “Shareholders are not being asked to approve the Transaction or the termination of the Current Sub-Advisory Agreement. Shareholders are only being asked to approve the New Sub-Advisory Agreement.”

10. In the Questions and Answers section, under “What will happen if shareholders do not approve the Proposals?”, please provide examples of other alternatives the Board will consider if the New Sub-Advisory Agreement is not approved by shareholders and clarify that the New Sub-Advisor will continue to act as sub-advisor to the ETF under the Interim Sub-Advisory Agreement if shareholders do not approve the New Sub-Advisory Agreement.

Response: The requested change has been made, by revising the language as follows (new language is underlined and deleted language is struck through): “If the New Sub-Advisory Agreement is not approved by shareholders, then VA will continue to serve as investment sub-advisor to the Fund under the Interim Sub-Advisory Agreement for the Fund will continue in effect until its expiration and the Board will consider other alternatives, such as seeking approval of a replacement sub-advisor or having the Adviser perform the services of the sub-advisor.

11. In the Questions and Answers section, under “What will happen if shareholders do not approve the Proposals?”, please provide examples of other alternatives the Board will consider if the shareholders do not approve for the ETF to operate under a “manager of managers” arrangement, including whether shareholders will continue to be solicited if the Proposal is not approved.

Response: The requested change has been made, by revising the language as follows (new language is underlined): “If the Proposal to approve a “manager of managers” arrangement is not approved, then the Board will consider other possible courses of action, such as continuing to seek approval of the arrangement or electing to not utilize such an arrangement for the Fund.

12. In the Questions and Answers section, under “Who will bear the costs related to this proxy solicitation?”, please clarify that the Adviser will bear the costs related to this proxy solicitation regardless of whether shareholders approve the proposals.

Response: The requested change has been made, by revising the language as follows (new language is underlined and deleted language is struck through): “VA or its affiliates will pay for the costs of this proxy solicitation, including the printing and mailing of the Proxy Statement and related materials regardless of whether shareholders approve the Proposals. provided that the The Adviser will pay for the reimburse VA for a portion of these costs to cover costs of the proxy solicitation related to obtaining soliciting shareholder approval of the “manager of managers” arrangement regardless of whether shareholders approve the Proposal. Under the terms of the Transaction, VA Holdings has agreed to reimburse VA for certain expenses related to obtaining a new sub-advisory agreement for the Fund.

Ms. Marquigny

U.S. Securities and Exchange Commission

June 15, 2023

Page 5

13. In the Questions and Answers section, under “May I revoke my proxy?”, please clarify what “at any time before it is exercised” means by providing a specific date and time by which a shareholder may effectively revoke its proxy.

Response: The requested change has been made, by revising the language as follows (new language is underlined): “A proxy given pursuant to this solicitation may be revoked at any time before it is voted. If you are a record holder, you may revoke your proxy and change your vote by: (1) the timely delivery of a duly executed proxy bearing a later date; (2) providing timely written not

Show Raw Text
CORRESP
1
filename1.htm

            June 15, 2023

            ATTORNEYS AT LAW

            777 EAST WISCONSIN AVENUE

            MILWAUKEE, WI  53202-5306

            414.271.2400 TEL

            414.297.4900 FAX

            www.foley.com

            WRITER’S DIRECT LINE

            414.297.5596

            pfetzer@foley.com EMAIL

            CLIENT/MATTER NUMBER

            082961-0151

    Via EDGAR System

            Ms. Rebecca Ament Marquigny

            U.S. Securities and Exchange Commission

            Division of Investment Management

            Washington, D.C.  20549

          Re:

            Hennessy Funds Trust (File Nos. 811-07168 and 033-52154)

             Preliminary Proxy Statement on Schedule 14A, Filed June 1, 2023

    Dear Ms. Marquigny:

    Our client, Hennessy Funds Trust (the “Company”),
      filed the above referenced Preliminary Proxy Statement on Schedule 14A on June 1, 2023 (the “Proxy Statement”), on behalf of the Hennessy Stance ESG ETF (the “ETF”).  On behalf of the Company, set forth below are the Company’s responses to oral comments of the Staff of the Securities and Exchange Commission regarding the
      Proxy Statement.  The numbered items set forth below express (in bold italics) the oral comments of the Staff, and following such comments are the Company’s
        responses (in regular type).  Capitalized terms not defined herein have the meanings ascribed to them in the Proxy Statement.

    1. In the Shareholder Letter, please revise the last sentence of the second paragraph to
        clarify that, with respect to Proposal 2, shareholders are relinquishing their right to vote on the hiring or removal of sub-advisors, except in cases where there is a conflict of interest or an increase in shareholder fees and expenses. Please
        also disclose the conditions and benefits to the ETF associated with operating under a “manager of managers” arrangement and under what circumstances the ETF is permitted to do so.

    Response:  The requested
      disclosure has been made, by revising the language to read as follows (new language is underlined): “The enclosed Proxy Statement also contains information about the Proposal for approval for the Fund to operate under a “manager of managers”
      arrangement, which would allow greater flexibility with respect to changing sub-advisory agreements as the Adviser would be able to enter into new sub-advisory
          agreements and materially amend existing sub-advisory agreements without obtaining shareholder approval and incurring the expense of convening a special meeting of shareholders for  that purpose. The Adviser previously received “manager of managers” exemptive relief from the Securities and Exchange Commission (“SEC”) for the Fund, however, the Adviser is only permitted to rely on the
          “manager of managers” exemptive relief from the SEC if shareholders first approve the “manager of managers” arrangement. The approval of the “manager of managers” arrangement would result in shareholders giving up their right to vote on approving
          a new sub-advisory agreement or amending an existing sub-advisory agreement, except in cases where there is a conflict of interest present or where a new sub-advisory agreement or an amendment to an existing sub-advisory agreement would result in
          an increase in shareholder fees and expenses.

              AUSTIN

              BOSTON

              CHICAGO

              DALLAS

              DENVER

              DETROIT

              HOUSTON

              JACKSONVILLE

              LOS ANGELES

              MADISON

              MEXICO CITY

              MIAMI

              MILWAUKEE

              NEW YORK

              ORLANDO

              SACRAMENTO

              SALT LAKE CITY

              SAN DIEGO

              SAN FRANCISCO

              SILICON VALLEY

              TALLAHASSEE

              TAMPA

              WASHINGTON, D.C.

              BRUSSELS

              TOKYO

      Ms. Marquigny

      U.S. Securities and Exchange Commission

      June 15, 2023

      Page 2

    2. In the Shareholder Letter, please revise the fourth paragraph to include a summary of any
        potential changes to the ETF’s investment strategy, portfolio managers or management that will occur if shareholders approve the Proposals. If no such changes will result, please include a statement to this effect.

    Response:  The requested
      disclosure has been made, by revising the language to read as follows (new language is underlined): “Importantly, approval of the Proposals will not
        result in any increase in shareholder fees or expenses or any changes to the Fund’s investment strategy, portfolio managers, or management.”

    3. In the Shareholder Letter, please revise the last paragraph to disclose the date and time
        by which shareholder votes must be received in order to be counted.

    Response:  The requested disclosure has been
      made, by adding the following language (new language is underlined): “Your vote is important regardless of the number of shares you own. To assure your
        representation at the Meeting, please follow the instructions on the enclosed proxy ballot whether or not you expect to be present at the Meeting.   You may vote over the Internet or by telephone until 11:59 p.m. Pacific Time on July 13, 2023. Votes provided
          through the mail via a completed traditional proxy card must be received by July 13, 2023.  A proxy given pursuant to this solicitation
          may be revoked at any time before it is voted.  If you are a record holder, you may revoke your proxy and change your vote by: (1) the timely delivery of a duly executed proxy bearing a later date; (2) providing timely written notice of
          revocation to the Fund’s Secretary at the Fund’s principal executive offices located at 7250 Redwood Boulevard, Suite 200, Novato, California 94945; or (3) attending the Special Meeting and giving oral notice of your intention to vote in person.
          If you are the beneficial owner of shares held in street name, you may revoke your proxy and change your vote: (1) by submitting new voting instructions to your broker, bank or other nominee in accordance with their voting instructions, or (2) if
          you have obtained a legal proxy from your bank, broker or other nominee giving you the right to vote your shares in person, by attending the Special Meeting, presenting the completed legal proxy to the Fund and voting in person.  You should be
          aware that simply attending the Special Meeting will not in and of itself constitute a revocation of your proxy.”

    4. In the Shareholder Letter, please revise the last sentence in the last paragraph to
        clarify that shareholders may revoke their proxy regardless of whether they attend the Meeting in-person.

    Response:  The requested
      disclosure has been made, by revising the language to read as follows (new language is underlined): “Your vote is important regardless of the number of
        shares you own. To assure your representation at the Meeting, please follow the instructions on the enclosed proxy ballot whether or not you expect to be present at the Meeting.   You may vote over the Internet or by telephone until 11:59 p.m. Pacific Time
          on July 13, 2023. Votes provided through the mail via a completed traditional proxy card must be received by July 13, 2023.  A proxy
          given pursuant to this solicitation may be revoked at any time before it is voted.  If you are a record holder, you may revoke your proxy and change your vote by: (1) the timely delivery of a duly executed proxy bearing a later date; (2)
          providing timely written notice of revocation to the Fund’s Secretary at the Fund’s principal executive offices located at 7250 Redwood Boulevard, Suite 200, Novato, California 94945; or (3) attending the Special Meeting and giving oral notice of
          your intention to vote in person.  If you are the beneficial owner of shares held in street name, you may revoke your proxy and change your vote: (1) by submitting new voting instructions to your broker, bank or other nominee in accordance with
          their voting instructions, or (2) if you have obtained a legal proxy from your bank, broker or other nominee giving you the right to vote your shares in person, by attending the Special Meeting, presenting the completed legal proxy to the Fund
          and voting in person.  You should be aware that simply attending the Special Meeting will not in and of itself constitute a revocation of your proxy.”

      Ms. Marquigny

      U.S. Securities and Exchange Commission

      June 15, 2023

      Page 3

    5. In the Notice of Special Meeting, please fix the hyperlink and supplementally confirm that
        the hyperlink is correct and will direct shareholders to the correct web address.

    Response:  We
      supplementally confirm that the hyperlink is correct as is and will be made active once the proxy materials have been posted to the website. Once active, shareholders will be directed to the correct website upon clicking the hyperlink.

    6. In the Questions and Answers section, please restate the second to last sentence in the
        second paragraph under “Why am I being asked to approve the New Sub-Advisory Agreement?” in plain English.

    Response:  The requested
      change has been made, by revising the sentence to read as follows (new language is underlined): “The Transaction is expected to be completed on or around June 30, 2023 (the “Closing Date”), subject to the satisfaction of customary closing
      conditions.  These conditions include, among others, the requirement that a specified number of VA clients consent to the change of control, that the representations and
          warranties of the parties are true, correct and complete, and that the parties have in all material respects performed and complied with all of their covenants and agreements.”

    7. In the Questions and Answers section, please state in the last paragraph under “Why am I
        being asked to approve the New Sub-Advisory Agreement?” who will be the ETF’s interim sub-advisor on June 30, 2023 if shareholders do not approve the New Sub-Advisory Agreement.

    Response:  The requested
      disclosure has been made, by adding the following language: “If the Fund’s shareholders do not approve the New-Sub-Advisory Agreement by the Closing Date, VA will continue to serve as the Fund’s investment sub-adviser under the Interim Sub-Advisory
      Agreement (as discussed below).”

    8. In the Questions and Answers section, under “Why am I being asked to approve a “manager of
        managers” arrangement?”, please clarify that shareholders must approve the “manager of managers” arrangement before the Adviser is permitted to rely on exemptive relief from the SEC.

    Response:  The requested
      disclosure has been made, by adding the following language (new language is underlined): “The Adviser previously received “manager of managers” exemptive relief from the Securities and Exchange Commission (the “SEC”) for the Fund, however, the Adviser is only permitted to rely on the “manager of managers” exemptive relief from the SEC if shareholders first approve the “manager of managers”
          arrangement.”

      Ms. Marquigny

      U.S. Securities and Exchange Commission

      June 15, 2023

      Page 4

    9. In the Questions and Answers section, under “How will the Transaction or the approval of
        the New Sub-Advisory Agreement affect me as the Fund shareholder?”, please clarify that shareholders are not being asked to approve the Transaction or the termination of the Current Sub-Advisory Agreement and are only being asked to vote on the New
        Sub-Advisory Agreement following the close of the Transaction.

    Response:  The requested
      change has been made, by adding the following language: “Shareholders are not being asked to approve the Transaction or the termination of the Current Sub-Advisory Agreement. Shareholders are only being asked to approve the New Sub-Advisory
      Agreement.”

    10. In the Questions and Answers section, under “What will happen if shareholders do not
        approve the Proposals?”, please provide examples of other alternatives the Board will consider if the New Sub-Advisory Agreement is not approved by shareholders and clarify that the New Sub-Advisor will continue to act as sub-advisor to the ETF
        under the Interim Sub-Advisory Agreement if shareholders do not approve the New Sub-Advisory Agreement.

    Response:  The requested
      change has been made, by revising the language as follows (new language is underlined and deleted language is struck through): “If the New Sub-Advisory Agreement is not approved by shareholders, then VA will continue to serve as investment sub-advisor to the Fund under the Interim Sub-Advisory Agreement for the Fund
          will continue in effect until its expiration and the Board will consider other alternatives, such as seeking approval of a replacement sub-advisor
          or having the Adviser perform the services of the sub-advisor.

    11. In the Questions and Answers section, under “What will happen if shareholders do not
        approve the Proposals?”, please provide examples of other alternatives the Board will consider if the shareholders do not approve for the ETF to operate under a “manager of managers” arrangement, including whether shareholders will continue to be
        solicited if the Proposal is not approved.

    Response:  The requested change has been
      made, by revising the language as follows (new language is underlined): “If the Proposal to approve a “manager of managers” arrangement is not approved, then
        the Board will consider other possible courses of action, such as continuing to seek approval of the arrangement or electing to not utilize such
          an arrangement for the Fund.

    12. In the Questions and Answers section, under “Who will bear the costs related to this proxy
        solicitation?”, please clarify that the Adviser will bear the costs related to this proxy solicitation regardless of whether shareholders approve the proposals.

    Response:  The requested
      change has been made, by revising the language as follows (new language is underlined and deleted language is struck through): “VA or its affiliates will pay for the costs of this proxy solicitation, including the printing and mailing of the Proxy
      Statement and related materials regardless of whether shareholders approve the Proposals.  provided that the The Adviser will pay
          for the reimburse VA for a portion of these costs to cover costs of the proxy solicitation related to obtaining soliciting
          shareholder approval of the “manager of managers” arrangement regardless of whether shareholders approve the Proposal. Under the terms of the
      Transaction, VA Holdings has agreed to reimburse VA for certain expenses related to obtaining a new sub-advisory agreement for the Fund.

      Ms. Marquigny

      U.S. Securities and Exchange Commission

      June 15, 2023

      Page 5

    13. In the Questions and Answers section, under “May I revoke my proxy?”, please clarify what
        “at any time before it is exercised” means by providing a specific date and time by which a shareholder may effectively revoke its proxy.

    Response:  The requested change has been
      made, by revising the language as follows (new language is underlined): “A proxy given pursuant to this solicitation may be revoked at any time before it is voted.  If
          you are a record holder, you may revoke your proxy and change your vote by: (1) the timely delivery of a duly executed proxy bearing a later date; (2) providing timely written not