Conversion

Information Page

The Conversion Information Page

The Conversions of the Guinness Atkinson Asia Pacific Dividend Builder Fund and the Guinness Atkinson Dividend Builder Fund have completed. This page is your source for information and updates on the Conversions. This page is available at SmartETFs.com/conversion and gafunds.com/conversion

Latest Conversion News

Update: March 29, 2021

The Conversions of the Guinness Atkinson Asia Pacific Dividend Builder Fund and Guinness Atkinson Dividend Builder Fund into the SmartETFs Asia Pacific Dividend Builder ETF and SmartETFs Dividend Builder ETF are complete. Shareholders should see the position change in their brokerage account sometime today or tomorrow. The ETFs are trading on the NYSE under the symbols ADIV and DIVS. 

Update: March 23, 2021

The Conversion is on track for March 26, and ADIV and DIVS are scheduled to begin trading on the NYSE on March 29. 
 
The last day for investors to redeem GAADX and GAINX is Thursday, March 25th. After that, investors can buy and sell ADIV and DIVS on the NYSE.
 
Direct investors and some investors (depending on your brokerage firm) will have their fractional shares redeemed on Friday, March 26. 
 

Update: February 26, 2021

The Information Statement notice to shareholders is in the process of being mailed to shareholders.

The Basics

The Asia Pacific Dividend Builder Fund and the Dividend Builder Fund are being converted from traditional open-end mutual funds into Exchange Traded Funds. The Conversions are expected to occur Friday, March 26, 2021 after the close of the NYSE. On Monday, March 29, 2021 these two Funds will begin operation as ETFs and will begin trading on the NYSE. The conversion is share for share: you will hold the same numbers of shares in the ETF as you own in the existing Guinness Atkinson Funds. Because some brokerage firms cannot deal with fractional shares of an ETF some shareholders will receive a cash payment for their fractional mutual fund shares.

The names of the Funds will change and the two Funds will be known as the

  • SmartETFs Asia Pacific Dividend Builder ETF, NYSE symbol: ADIV
  • SmartETFs Dividend Builder ETF, NYSE symbol: DIVS

Once converted, the two ETFs will still be managed by Guinness Atkinson Asset Management and there will be no changes to the management style, investment restrictions or portfolio managers as a result of the Conversions.

The Conversions are not taxable events, however, for some shareholders there could be a small cash payment for fractional shares, and the redemption of the fractional share could be a taxable event. Your cost basis in the Guinness Atkinson Funds will remain the same after they become SmartETFs, however, the cost basis will be adjusted for fractional share redemptions if you receive one.  

The Information Statement explains why the Conversions are taking place and the advantages, disadvantages and considerations shareholders should understand about the Conversions.

What Shareholders Need to Do

All shareholders in these two Funds have been mailed an official notice known as the Information Statement. This notice is also available online. The Information Statement includes a prospectus for the two new ETFs. Shareholders are advised to read the Information Statement and the prospectuses.

What are your options as a shareholder?

  1. Accept the Conversion. When the Conversion happens, your shares will be deposited into your account. (If you are a direct shareholder, see below.)
  2. Exchange your shares into another Guinness Atkinson Fund. You can do this by calling your broker or by calling Guinness Atkinson Funds at 800 915-6566. The last day to exchange your shares prior to the Conversion is March 18.
  3. Redeem your shares in the Asia Pacific Dividend Builder Fund or the Dividend Builder Fund. You can do this by contacting your broker or calling the Guinness Atkinson Funds at 800 915-6566. The last day to redeem your shares prior to the Conversion is March 25.

If you own the Guinness Atkinson Asia Pacific Dividend Builder Fund or the Guinness Atkinson Dividend Builder Fund through a brokerage firm then no action is necessary on your part unless you do not wish to own your shares after they convert to an ETF. If you do not wish for your shares to convert to an ETF you have the option of redeeming your shares prior to March 25. March 25 will be the last day to redeem prior to the conversion.

Important Notice to Direct Shareholders

Most of the shareholders in these two Funds own their shares via a brokerage account. If you own your shares through a brokerage account you can skip this section. If you own your shares directly with the Fund, meaning you get your statements from the Guinness Atkinson Funds, you should take action prior to the Conversions.

If you’re a direct shareholder the top of your statement will look something like this:

If you’re a direct shareholder, you should take one of three actions prior to March 25, 2021:

  1. Transfer your shares to the brokerage firm of your choice. More information on how to do this is below.
  2. Exchange your shares into another Guinness Atkinson Fund by calling 800 915-6566.
  3. Redeem your shares by calling 800 915-6566.

Transferring your shares to your broker: If you already have a brokerage account this is a very simple process. Simply advise your broker that you have shares in a Guinness Atkinson Fund that you wish to transfer into your account. Your broker will ask you to complete a form and will likely ask for a copy of a recent statement. Once initiated, this process usually only takes a few days. If this is your preferred option we request that you begin the transfer as soon as you can.

If you don’t have a brokerage account you will need to first establish an account with the brokerage firm of your choice.

If you’re a direct shareholder we will be reaching out to you by mail, email and phone to help you through the transfer process.

If you are a direct shareholder and you fail to take any action, your shares will be converted into shares of the SmartETFs Asia Pacific Dividend Builder ETF or SmartETFs Dividend Builder ETF, as appropriate, and held by a stock transfer agent, American Stock Transfer, waiting for your instructions.

Additional Information

We’re excited about the Conversions and the benefits to shareholders.

If you have questions about the conversion please call us at (866) 307-5990 or email us at [email protected]

Please visit this page for updates on the process. The updates will be at the top of the page under Latest Conversion News.

Read the Information Statement here.

Summary Prospectus for the SmartETFs Asia Pacific Dividend Builder ETF

Summary Prospectus for the SmartETFs Dividend Builder ETF

Prospectus for the SmartETFs Asia Pacific Dividend Builder ETF and the SmartETFs Dividend Builder ETF

SAI for the SmartETFs Asia Pacific Dividend Builder ETF and the SmartETFs Dividend Builder ETF

Conversion Timeline (All Dates 2021)

These dates are subject to change; changes will be updated here.

Target Conversion Date: March 26

First Day of Trading on NYSE as ETFs: March 29

Mailing of N-14 and Prospectuses to Shareholders: Week of March 1

Last Day to Purchase Guinness Atkinson Asia Pacific Dividend Builder Fund and Guinness Atkinson Dividend Builder Fund: March 18

Last Day to Redeem Guinness Atkinson Asia Pacific Dividend Builder Fund and Guinness Atkinson Dividend Builder Funds: March 25

SmartETFs

SmartETFs is the line of ETFs offered by Guinness Atkinson Asset Management. For more information visit SmartETFs.com.