Investment Operations

BBH Supports First US Conversion of Mutual Funds to ETFs

Securities Financing Transactions SFT DTCC

Earlier this week, Brown Brothers Harriman confirmed it was converting two open-end mutual funds to ETFs on behalf of Guinness Atkinson Asset Management: Guinness Atkinson Dividend Builder Fund (GAINX) and Guinness Atkinson Asia Pacific Dividend Builder Fund (GAADX). According to the bank, which has had a long-standing relationship with Guinness Atkinson, serving as custodian, transfer agent, and fund accountant to their mutual funds for over a decade, as well as providing ETF support to their SmartETFs business line since inception in 2019, these are the first two mutual funds converted into ETFs in the U.S.

“This represents a new opportunity for fund managers to bring assets and historic track records to newly listed ETFs and could spark another wave of product development in the ETF market,” said Ryan Sullivan, Head of U.S. ETF Servicing at BBH.

Guinness Atkinson said it decided to transition the current funds based on growing demand from its shareholder base for access to ETFs and its own previous success in launching three ETF products. These two dividend funds are of particular interest to investors, and Guinness Atkinson believe they will be of even greater interest as ETFs.

“This conversion represents the culmination of a dialogue we’ve had with our shareholder base, who, like many, are increasingly attracted to the benefits of ETFs, including their lower costs and greater flexibility,” said Jim Atkinson, CEO of Guinness Atkinson Asset Management. “This conversion was possible thanks to the work with our great partners at BBH and we are grateful for their expertise and effort.”