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 811-08360
(Exact name of registrant as specified in charter)
251 South Lake Avenue, Suite 800
Pasadena, CA 91101
(Address of principal executive offices) (Zip code)
(Name and address of agent for service)
James J. Atkinson, Jr.
251 South Lake Avenue, Suite 800
Pasadena, CA 91101
Registrant’s telephone number, including area code: (800-915-6566)
Date of fiscal year end: December 31
Date of reporting period:
Item 1. Report to Stockholders.
(a) | The registrant’s semi-annual report transmitted to shareholders pursuant to Rule 30e-1 under the Investment Company Act of 1940, as amended (the “Investment Company Act”), is as follows: |
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Semi-Annual Shareholder Report |
June 30, 2024
Fund (Class) | Costs of a $10,000 Investment | Costs Paid as a Percentage of a $10,000 Investment |
---|---|---|
Guinness Atkinson Alternative Energy Fund | $ |
In the first half of 2024, the Guinness Atkinson Alternative Energy Fund produced a total return of -3.67% vs the MSCI World Index (net return) of 11.75%.
What affected the Fund's performance?
Fund performance can be attributed to the following.
Within the portfolio, the strongest performers included:
Our electrical equipment names Eaton, Hubbell, Schneider and Itron all performed strongly driven by an acceleration in global electrification activity and the resolution of supply chain issues which allowed them to pass on inflationary pressures and therefore maintain operating margins. Hubbell and Eaton delivered good earnings upgrades resulting from the re-industrialisation of the United States as well as the move to electrification. The positive order book inflection continues at Eaton.
Within displacement, Trane Technologies and Installed Building Products (IBP) delivered well. Trane was helped also by regulatory changes and its positioning with respect data centres.
In addition, First Solar shares were up 30.9% in 1H as the company was seen as a key beneficiary when local content IRA tax credit definitions were clarified while NextEra performed well after delivering an upbeat "Renewables Development Day" for investors.
Sectors and companies in the portfolio that were relatively weaker over the period included:
The electrification sub sector, with EV component and lithium-ion battery manufacturers suffering from delays in EV launch schedules, margin pressure and the threat of increasing Chinese competition.
Nibe shares were under pressure as the heat pump market remains overstocked at the distributor level.
Canadian Solar delivered negative contribution as module prices reached record lows while US residential solar companies continued to face a prolonged de-stocking headwind.
A number of our generation companies delivered negative contribution as interest rate cuts did not crystalise while Sunnova weakened through the period as the US residential solar business remained under pressure.
6 Months (Actual) | 1 Year | 5 Years | 10 Years | |
---|---|---|---|---|
Guinness Atkinson Alternative Energy Fund |
- |
- |
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|
MSCI World Index (Net Return) |
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|
|
The graph and total returns reflect the reinvestment of distributions made by the Fund, if any.
For the most recent performance information, visit https://www.gafunds.com/our-funds/alternative-energy-fund/#fund_performance.
The following graph compares the initial and subsequent account values at the end of each of the most recently completed 10 fiscal years of the Fund, or for the life of the Fund, if shorter. It assumes a $10,000 initial investment at the beginning of the first fiscal year in an appropriate, broad-based securities market index for the same period.
Net Assets ($) | $ |
Number of Portfolio Holdings | |
Portfolio Turnover Rate (%) |
Top 10 | % of Net Assets |
---|---|
Iberdrola SA | |
Trane Technologies PLC | |
Nextera Energy Inc. | |
Schneider Electric SE | |
Eaton Corp PLC | |
Hubbell Inc | |
Legrand SA | |
Siemens AG | |
NXP Semiconductors NV | |
Owens Corning |
The tables below show the investment makeup of the Fund, representing percentage of the total net assets of the Fund. The Top Ten Holdings and Geographic Allocation exclude short-term holdings, if any.
There were no changes in or disagreements with the Fund's accountants during the reporting period.
You can find additional information about the Fund such as the prospectus, financial information, fund holdings and proxy voting information at https://www.gafunds.com/our-funds/alternative-energy-fund/. You can also request this information by contacting us at (800) 915-6565.
To reduce expenses, the Trust may mail only one copy of Funds' prospectus and each annual and semi-annual report to those addresses shared by two or more accounts. If you wish to receive individual copies of these documents, please call us at (800) 915-6565 (or contact your financial institution). The Trust will be sending you individual copies thirty days after receiving your request.
Distributed by Foreside Fund Services, LLC.
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Semi-Annual Shareholder Report |
June 30, 2024
Fund (Class) | Costs of a $10,000 Investment | Costs Paid as a Percentage of a $10,000 Investment |
---|---|---|
Guinness Atkinson Asia Focus Fund | $ |
In the first half of 2024, the Guinness Atkinson Asia Focus Fund produced a total return of 0.34% vs the MSCI AC Far East ex Japan Index (net return) of 7.98%.
What affected the Fund's performance?
Fund performance can be attributed to the following:
Overall Fund performance was primarily driven by asset allocation, with overweighting to Information Technology and zero weighting to Real Estate and Materials driving the highest contributions to the Fund's total returns.
Overweighting in Health Care and Consumer Discretionary caused the largest drags to performance contribution. Communication Services was the third largest drag, although this was driven by stock selection (underweight Tencent and overweight Baidu) which more than offset positive asset allocation effects.
Stock selection in Health Care and Consumer Discretionary were also drags on performance, driven by China Medical Systems (-51.62% in USD), Corporate Travel Management (-32.90%), and Hanon Systems (-39.15%).
A positive stock selection effect was seen in Financials where China Merchants Bank (+30.34%) and DBS Group (+18.23%) both outperformed. Within Technology, we saw strong performances from TSMC (+54.88%), Applied Materials (+46.12%) and Broadcom (+44.90%). However, under allocation to TSMC caused a drag effect.
6 Months (Actual) | 1 Year | 5 Years | 10 Years | |
---|---|---|---|---|
Guinness Atkinson Asia Focus Fund |
|
|
|
|
MSCI AC Far East ex Japan Index (Net Return) |
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|
|
|
The graph and total returns reflect the reinvestment of distributions made by the Fund, if any.
For the most recent performance information, visit https://www.gafunds.com/our-funds/asia-focus-fund/#fund_performance.
The following graph compares the initial and subsequent account values at the end of each of the most recently completed 10 fiscal years of the Fund, or for the life of the Fund, if shorter. It assumes a $10,000 initial investment at the beginning of the first fiscal year in an appropriate, broad-based securities market index for the same period.
Net Assets ($) | $ |
Number of Portfolio Holdings | |
Portfolio Turnover Rate (%) |
Top 10 | % of Net Assets |
---|---|
Broadcom Inc. | |
Taiwan Semiconductor Manufacturing Co., Ltd. | |
Applied Materials Inc. | |
Elite Material Co., Ltd. | |
Samsung Electronics Co., Ltd. | |
NetEase Inc. - ADR | |
DBS Group Holdings | |
NARI Technology Co., Ltd. | |
Shenzhou International | |
Autohome Inc. |
The tables below show the investment makeup of the Fund, representing percentage of the total net assets of the Fund. The Top Ten Holdings and Industry Allocation exclude short-term holdings, if any.
Sector | % of Net Assets |
---|---|
Electronic Components - Semiconductor | |
Commercial Banks | |
Semiconductor Components - Integrated Circuits | |
Electronic Component Miscellaneous | |
E-Commerce/Services | |
Entertainment Software | |
Machinery - General Industries | |
Textile - Apparel | |
Building Products - Cement/Aggregates | |
Photo Equipment & Supplies | |
Internet Application Software | |
Food - Dairy Products | |
MRI/Medical Diagnostic Imaging | |
E-Commerce/Products | |
Machinery - Construction & Mining | |
Computer Data Security | |
Travel Services | |
Medical Products | |
Auto - Cars/Light Trucks | |
Auto/Truck Parts & Equipment | |
Insurance | |
Batteries/Battery Systems | |
Pharmaceuticals | |
Internet & Direct Marketing Retail | |
Metal Processors & Fabricators |
There were no changes in or disagreements with the Fund's accountants during the reporting period.
You can find additional information about the Fund such as the prospectus, financial information, fund holdings and proxy voting information at https://www.gafunds.com/our-funds/asia-focus-fund/. You can also request this information by contacting us at (800) 915-6565.
To reduce expenses, the Trust may mail only one copy of Funds' prospectus and each annual and semi-annual report to those addresses shared by two or more accounts. If you wish to receive individual copies of these documents, please call us at (800) 915-6565 (or contact your financial institution). The Trust will be sending you individual copies thirty days after receiving your request.
Distributed by Foreside Fund Services, LLC.
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Semi-Annual Shareholder Report |
June 30, 2024
Fund (Class) | Costs of a $10,000 Investment | Costs Paid as a Percentage of a $10,000 Investment |
---|---|---|
Guinness Atkinson China & Hong Kong Fund | $ |
In the first half of 2024, the Guinness Atkinson China & Hong Kong Fund produced a total return of -8.16% vs the MSCI China Index (net return) of 4.74%.
What affected the Fund's performance?
Fund performance can be attributed to the following:
Areas which helped the Fund's performance were:
Individual stock returns, led by China Merchants Bank (total return +30.4%), Sany Heavy Industry (+18.7%) and Haier Smart Home (+18.4%).
Stock selection in the Real Estate sector, driven by China Overseas Land & Investment (+1.6%) compared to the sector which fell 11.4%.
Stock selection in the Consumer Staples sector, led by not holding names such as Kweichow Moutai (-15.2%), Mengniu Dairy (-30.6%) and JD Health (-45.6%).
Areas which detracted from the Fund's relative performance were:
Offshore stocks outperformed onshore stocks. As the Fund is underweight to the offshore market and overweight to A shares, it benefited from less of the rally in the offshore market.
The Fund has an overweight to mid-caps which, along with small caps, have significantly underperformed large caps.
Structural underweight to Tencent (total return +28.0%) which is the largest stock in the Index and so the Fund's relative performance benefited less.
Underweight to Financials, and more specifically the underweight to the large state-owned enterprise (SOE) banks. The Fund does not hold any of the large SOE banks which have been significant outperformers as a value play.
The combined underweight to Materials, Energy and Utilities which have been stronger sectors but where the Fund has no exposure.
6 Months (Actual) | 1 Year | 5 Years | 10 Years | |
---|---|---|---|---|
Guinness Atkinson China & Hong Kong Fund |
- |
- |
- |
- |
MSCI China Index (Net Return) |
|
- |
- |
|
The graph and total returns reflect the reinvestment of distributions made by the Fund, if any.
For the most recent performance information, visit https://www.gafunds.com/our-funds/china-hong-kong-fund/#fund_performance.
The following graph compares the initial and subsequent account values at the end of each of the most recently completed 10 fiscal years of the Fund, or for the life of the Fund, if shorter. It assumes a $10,000 initial investment at the beginning of the first fiscal year in an appropriate, broad-based securities market index for the same period.
Net Assets ($) | $ |
Number of Portfolio Holdings | |
Portfolio Turnover Rate (%) |
Top 10 | % of Net Assets |
---|---|
Tencent Holdings Ltd. | |
NARI Technology Co., Ltd. | |
Geely Automobile Holdings Ltd. | |
China Merchants Bank Co., Ltd. - H Shares | |
Weichai Power Co., Ltd. - H Shares | |
Inner Mongolia Yili Industrial Group Co., Ltd. - A Shares | |
Sany Heavy Industry Co., Ltd. - A Shares | |
NetEase Inc. - ADR | |
Shenzhou International Group Holdings Ltd. | |
Hong Kong Exchanges & Clearing Ltd. |
The tables below show the investment makeup of the Fund, representing percentage of the total net assets of the Fund. The Top Ten Holdings and Geographic Allocation exclude short-term holdings, if any.
There were no changes in or disagreements with the Fund's accountants during the reporting period.
You can find additional information about the Fund such as the prospectus, financial information, fund holdings and proxy voting information at https://www.gafunds.com/our-funds/china-hong-kong-fund/. You can also request this information by contacting us at (800) 915-6565.
To reduce expenses, the Trust may mail only one copy of Funds' prospectus and each annual and semi-annual report to those addresses shared by two or more accounts. If you wish to receive individual copies of these documents, please call us at (800) 915-6565 (or contact your financial institution). The Trust will be sending you individual copies thirty days after receiving your request.
Distributed by Foreside Fund Services, LLC.
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Semi-Annual Shareholder Report |
June 30, 2024
Fund (Class) | Costs of a $10,000 Investment | Costs Paid as a Percentage of a $10,000 Investment |
---|---|---|
Guinness Atkinson Global Energy Fund | $ |
In the first half of 2024, the Guinness Atkinson Global Energy Fund produced a total return of 10.19% vs the MSCI World Index (net return) of 11.75%.
What affected the Fund's performance?
Fund performance can be attributed to the following.
Within the portfolio, the strongest performers included:
Canadian integrateds: Holdings such as Canadian Natural Resources and Imperial Oil benefiting from operational leverage to rising oil prices, and a narrowing of the differential between Canadian and US oil benchmarks.
US exploration and production companies: Also with good leverage to rising oil prices, plus well received M&A for Diamondback Energy, as described above.
US refining: Tighter refining capacity, especially with outages in Russia, drove refining margins higher. Particular beneficiaries included Valero Energy and US major, Exxon.
Chinese majors: our holding in Petrochina performed particularly well, benefitting from lower gas prices (helping the company's gas import division) and stronger oil production.
Galp: exploration success offshore Namibia has boosted expectations of a material uplift in Galp's proven oil and gas reserves in the coming years.
Sectors in the portfolio that were relatively weaker over the period included:
International natural gas: Equinor, which supplies around one third of Northwest Europe's gas needs, was a notable laggard, reflecting the decline in European gas prices since the start of the year.
Services: Large cap diversified service companies Schlumberger and Baker Hughes underperformed, driven by a falling rig count in North America and a pullback in longer-term oil spending in Saudi.
Midstream: Pipeline companies Enbridge and Kinder Morgan underperformed, due to lower leverage to rising oil prices than most other parts of the portfolio.
6 Months (Actual) | 1 Year | 5 Years | 10 Years | |
---|---|---|---|---|
Guinness Atkinson Global Energy Fund |
|
|
|
- |
MSCI World Index (Net Return) |
|
|
|
|
MSCI World Energy Index (Net Return) |
|
|
|
|
The graph and total returns reflect the reinvestment of distributions made by the Fund, if any.
For the most recent performance information, visit https://www.gafunds.com/our-funds/global-energy-fund/#fund_performance.
The following graph compares the initial and subsequent account values at the end of each of the most recently completed 10 fiscal years of the Fund, or for the life of the Fund, if shorter. It assumes a $10,000 initial investment at the beginning of the first fiscal year in an appropriate, broad-based securities market index for the same period.
Net Assets ($) | $ |
Number of Portfolio Holdings | |
Portfolio Turnover Rate (%) |
Top 10 | % of Net Assets |
---|---|
Shell PLC | |
Exxon Mobil Corp. | |
Chevron Corp. | |
TotalEnergies SE | |
BP PLC | |
ConocoPhillips | |
Valero Energy Corp. | |
Imperial Oil Ltd. | |
Diamondback Energy Inc. | |
Suncor Energy Inc. |
The tables below show the investment makeup of the Fund, representing percentage of the total net assets of the Fund. The Top Ten Holdings and Geographic Allocation exclude short-term holdings, if any.
There were no changes in or disagreements with the Fund's accountants during the reporting period.
You can find additional information about the Fund such as the prospectus, financial information, fund holdings and proxy voting information at https://www.gafunds.com/our-funds/global-energy-fund/. You can also request this information by contacting us at (800) 915-6565.
To reduce expenses, the Trust may mail only one copy of Funds' prospectus and each annual and semi-annual report to those addresses shared by two or more accounts. If you wish to receive individual copies of these documents, please call us at (800) 915-6565 (or contact your financial institution). The Trust will be sending you individual copies thirty days after receiving your request.
Distributed by Foreside Fund Services, LLC.
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Semi-Annual Shareholder Report |
June 30, 2024
Fund (Class) | Costs of a $10,000 Investment | Costs Paid as a Percentage of a $10,000 Investment |
---|---|---|
Guinness Atkinson Global Innovators Fund - |
$ |
In the first half of 2024, the Guinness Atkinson Global Innovators Fund - Investor Class produced a total return of 18.35% vs the MSCI World Index (net return) of 11.75%.
What affected the Fund's performance?
Fund performance can be attributed to:
The Fund's overweight position to the Information Technology sector, and more specifically the benchmark's top performing Semiconductor industry, was the greatest tailwind to Fund outperformance, driven by both strong allocation and stock selection effects. Strength from Nvidia (+149.5% USD), off-benchmark name TSMC (+68.3% USD) and semi-cap equipment names Applied Materials (+46.1%), KLA (+42.4%) and Lam Research (+36.5%) all contributed positively to Fund outperformance.
The Fund also benefitted from strong stock selection within Industrials, where holdings ABB (+27.6% USD) and Schneider Electric (+21.3%) outperformed the broader MSCI World Industrials index by 20.1% and 13.8% respectively.
Whilst holding a relatively neutral position to both the Communication services and Healthcare sectors, strength from Meta (+42.7% USD), Alphabet (+30.3%) and Novo Nordisk (+40.5%) drove a strong stock selection effect within these sectors.
The Fund benefitted from a zero-weight allocation to Energy, Utilities, Consumer Staples, Materials and Real Estate, which all underperformed the broader benchmark.
6 Months (Actual) | 1 Year | 5 Years | 10 Years | |
---|---|---|---|---|
Guinness Atkinson Global Innovators Fund - Investor Class |
|
|
|
|
MSCI World Index (Net Return) |
|
|
|
|
The graph and total returns reflect the reinvestment of distributions made by the Fund, if any.
For the most recent performance information, visit https://www.gafunds.com/our-funds/global-innovators-fund/#fund_performance.
The following graph compares the initial and subsequent account values at the end of each of the most recently completed 10 fiscal years of the Fund, or for the life of the Fund, if shorter. It assumes a $10,000 initial investment at the beginning of the first fiscal year in an appropriate, broad-based securities market index for the same period.
Net Assets ($) | $ |
Number of Portfolio Holdings | |
Portfolio Turnover Rate (%) |
Top 10 | % of Net Assets |
---|---|
KLA-Tencor Corp. | |
Amphenol Corporation | |
Applied Materials Inc. | |
ABB Ltd. | |
Lam Research Corp. | |
Microsoft Corp. | |
Taiwan Semiconductor Manufacturing Co. Ltd. - ADR | |
Meta Platforms Inc. - Class A | |
NVIDIA Corp. | |
Schneider Electric SE |
The tables below show the investment makeup of the Fund, representing percentage of the total net assets of the Fund. The Top Ten Holdings and Geographic Allocation exclude short-term holdings, if any.
There were no changes in or disagreements with the Fund's accountants during the reporting period.
You can find additional information about the Fund such as the prospectus, financial information, fund holdings and proxy voting information at https://www.gafunds.com/our-funds/global-innovators-fund/. You can also request this information by contacting us at (800) 915-6565.
To reduce expenses, the Trust may mail only one copy of Funds' prospectus and each annual and semi-annual report to those addresses shared by two or more accounts. If you wish to receive individual copies of these documents, please call us at (800) 915-6565 (or contact your financial institution). The Trust will be sending you individual copies thirty days after receiving your request.
Distributed by Foreside Fund Services, LLC.
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Semi-Annual Shareholder Report |
June 30, 2024
Fund (Class) | Costs of a $10,000 Investment | Costs Paid as a Percentage of a $10,000 Investment |
---|---|---|
Guinness Atkinson Global Innovators Fund - |
$ |
In the first half of 2024, the Guinness Atkinson Global Innovators Fund - Institutional Class produced a total return of 18.51% vs the MSCI World Index (net return) of 11.75%.
What affected the Fund's performance?
Fund performance can be attributed to:
The Fund's overweight position to the Information Technology sector, and more specifically the benchmark's top performing Semiconductor industry, was the greatest tailwind to Fund outperformance, driven by both strong allocation and stock selection effects. Strength from Nvidia (+149.5% USD), off-benchmark name TSMC (+68.3% USD) and semi-cap equipment names Applied Materials (+46.1%), KLA (+42.4%) and Lam Research (+36.5%) all contributed positively to Fund outperformance.
The Fund also benefitted from strong stock selection within Industrials, where holdings ABB (+27.6% USD) and Schneider Electric (+21.3%) outperformed the broader MSCI World Industrials index by 20.1% and 13.8% respectively.
Whilst holding a relatively neutral position to both the Communication services and Healthcare sectors, strength from Meta (+42.7% USD), Alphabet (+30.3%) and Novo Nordisk (+40.5%) drove a strong stock selection effect within these sectors.
The Fund benefitted from a zero-weight allocation to Energy, Utilities, Consumer Staples, Materials and Real Estate, which all underperformed the broader benchmark.
6 Months (Actual) | 1 Year | 5 Years | 10 Years | |
---|---|---|---|---|
Guinness Atkinson Global Innovators Fund - Institutional Class |
|
|
|
|
MSCI World Index (Net Return) |
|
|
|
|
The graph and total returns reflect the reinvestment of distributions made by the Fund, if any.
For the most recent performance information, visit https://www.gafunds.com/our-funds/global-innovators-fund/#fund_performance.
The following graph compares the initial and subsequent account values at the end of each of the most recently completed 10 fiscal years of the Fund, or for the life of the Fund, if shorter. It assumes a $10,000 initial investment at the beginning of the first fiscal year in an appropriate, broad-based securities market index for the same period.
Net Assets ($) | $ |
Number of Portfolio Holdings | |
Portfolio Turnover Rate (%) |
Top 10 | % of Net Assets |
---|---|
KLA-Tencor Corp. | |
Amphenol Corporation | |
Applied Materials Inc. | |
ABB Ltd. | |
Lam Research Corp. | |
Microsoft Corp. | |
Taiwan Semiconductor Manufacturing Co. Ltd. - ADR | |
Meta Platforms Inc. - Class A | |
NVIDIA Corp. | |
Schneider Electric SE |
The tables below show the investment makeup of the Fund, representing percentage of the total net assets of the Fund. The Top Ten Holdings and Geographic Allocation exclude short-term holdings, if any.
There were no changes in or disagreements with the Fund's accountants during the reporting period.
You can find additional information about the Fund such as the prospectus, financial information, fund holdings and proxy voting information at https://www.gafunds.com/our-funds/global-innovators-fund/. You can also request this information by contacting us at (800) 915-6565.
To reduce expenses, the Trust may mail only one copy of Funds' prospectus and each annual and semi-annual report to those addresses shared by two or more accounts. If you wish to receive individual copies of these documents, please call us at (800) 915-6565 (or contact your financial institution). The Trust will be sending you individual copies thirty days after receiving your request.
Distributed by Foreside Fund Services, LLC.
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Semi-Annual Shareholder Report |
June 30, 2024
This report describes changes to the Fund that occurred during the reporting period.
Fund (Class) | Costs of a $10,000 Investment | Costs Paid as a Percentage of a $10,000 Investment |
---|---|---|
Guinness Atkinson Renminbi Yuan & Bond Fund | $ |
In the first half of 2024, the Guinness Atkinson Renminbi Yuan & Bond Fund produced a total return of -0.62% vs the Hang Seng Markit IBoxx Offshore RMB Overall Index of -0.21%.
What affected the Fund's performance?
Fund performance can be attributed to the following:
Overall Fund performance was primarily driven interest coupons and bonds price gains (+1.85%) but offset in dollar terms by a decline (-2.43%) in the value of the Renminbi vs the US Dollar.
The biggest contributor to performance was GLP China Holdings 4% 07/02/2024 (+26.7%). The bond had been exhibiting signs of distress, but the company has been raising liquidity and the price improved. The bond has since matured, on maturity date at par.
The macro environment in China has remained testing with consumer sentiment weak, inflation falling and the government very cautious about adding short-term stimulus.
6 Months (Actual) | 1 Year | 5 Years | 10 Years | |
---|---|---|---|---|
Guinness Atkinson Renminbi Yuan & Bond Fund |
- |
|
|
|
Hang Seng Markit iBoxx Offshore RMB Overall Index (Net Return) |
- |
|
|
|
The graph and total returns reflect the reinvestment of distributions made by the Fund, if any.
For the most recent performance information, visit https://www.gafunds.com/our-funds/renminbi-yuan-bond-fund/#fund_performance.
The following graph compares the initial and subsequent account values at the end of each of the most recently completed 10 fiscal years of the Fund, or for the life of the Fund, if shorter. It assumes a $10,000 initial investment at the beginning of the first fiscal year in an appropriate, broad-based securities market index for the same period.
Net Assets ($) | $ |
Number of Portfolio Holdings | |
Portfolio Turnover Rate (%) |
Top 10 | % of Net Assets |
---|---|
Yuan Renminbi Offshore | |
First Abu Dhabi Bank, 3.400%, 08/18/25 | |
Standard Chartered PLC 4.350%, 03/18/26 | |
China Development Bank, 3.230%, 11/27/25 | |
QNB Finance Ltd., 3.800%, 06/17/25 | |
HSBC Holding, 3.400%, 06/29/27 | |
Bank of China, 3.080%, 04/28/26 | |
Agriculture Development Bank of China 3.400%, 11/06/24 | |
Municipality of Shenzhen China, 2.900%, 10/19/26 | |
QNB Finance Ltd., 3.900%, 06/17/25 |
The tables below show the investment makeup of the Fund, representing percentage of the total net assets of the Fund. The Top Ten Holdings and Geographic Allocation exclude short-term holdings, if any.
This is a summary of certain planned changes since the beginning of the reporting period. For more complete information, you may review the Fund's prospectus at https://www.gafunds.com/our-funds/renminbi-yuan-bond-fund/ or you may request this information by contacting us at (800) 915-6565.
On June 26, 2024, the Board of Trustees of the Fund approved a proposal to liquidate the Fund. Accordingly, effective on July 3, 2024, the Fund will no longer accept purchase orders and the Fund will be terminated on August 30, 2024.
There were no changes in or disagreements with the Fund's accountants during the reporting period.
You can find additional information about the Fund such as the prospectus, financial information, fund holdings and proxy voting information at https://www.gafunds.com/our-funds/renminbi-yuan-bond-fund/. You can also request this information by contacting us at (800) 915-6565.
To reduce expenses, the Trust may mail only one copy of Funds' prospectus and each annual and semi-annual report to those addresses shared by two or more accounts. If you wish to receive individual copies of these documents, please call us at (800) 915-6565 (or contact your financial institution). The Trust will be sending you individual copies thirty days after receiving your request.
Distributed by Foreside Fund Services, LLC.
(b) | Not applicable. |
Item 2. Code of Ethics.
Not applicable.
Item 3. Audit Committee Financial Expert.
Not applicable.
Item 4. Principal Accountant Fees and Services.
Not applicable.
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Item 6. Investments.
(a) | Schedule of Investments is included as part of the report to shareholders filed under Item 7 of this Form. |
(b) | Not Applicable. |
Guinness Atkinson™ Funds
June 30, 2024
TABLE OF CONTENTS
Item 7. Financial Statements and Financial Highlights
Schedule of Investments | |
Alternative Energy Fund | 3 |
Asia Focus Fund | 5 |
China & Hong Kong Fund | 7 |
Global Energy Fund | 9 |
Global Innovators Fund | 11 |
Renminbi Yuan & Bond Fund | 13 |
Statements of Assets and Liabilities | 14 |
Statements of Operations | 16 |
Statements of Changes in Net Assets | 18 |
Financial Highlights | 23 |
Notes to Financial Statements | 30 |
This report and the financial statements contained herein are provided for the general information of the shareholders of the Guinness Atkinson Funds. This report is not authorized for distribution to prospective investors in the Funds unless preceded or accompanied by an effective shareholder report and prospectus.
https://www.gafunds.com/
Item 7. Financial Statements and Financial Highlights for Open-End Management Investment Companies.
GUINNESS ATKINSON ALTERNATIVE ENERGY FUND
Schedule of Investments
at June 30, 2024 (Unaudited)
Shares | Common Stocks: 98.6% | Value | ||||||
Electrification: 27.1% | ||||||||
10,338 | APTIV PLC* | $ | 728,002 | |||||
10,410 | Gentherm Inc.* | 513,421 | ||||||
22,239 | Infineon Technologies AG | 817,075 | ||||||
33,386 | Johnson Matthey PLC | 661,272 | ||||||
2,659 | LG Chem Ltd. | 665,733 | ||||||
3,280 | NXP Semiconductors NV | 882,615 | ||||||
11,144 | ON Semiconductor Corp.* | 763,921 | ||||||
2,639 | Samsung SDI Co., Ltd. | 676,981 | ||||||
19,883 | Sensata Technologies Holding | 743,425 | ||||||
6,452,445 | ||||||||
Energy Efficiency: 19.5% | ||||||||
15,522 | Ameresco* | 447,189 | ||||||
2,746 | Hubbell Inc. | 1,003,608 | ||||||
3,533 | Installed Building Products Inc. | 726,667 | ||||||
114,741 | Nibe Industrier AB - B Shares | 486,592 | ||||||
4,900 | Owens Corning | 851,228 | ||||||
3,366 | Trane Technologies PLC | 1,107,178 | ||||||
4,622,462 | ||||||||
Renewable Energy Generation: 19.2% | ||||||||
626,000 | China Longyuan Power Group Corp. - H Shares | 562,754 | ||||||
798,000 | China Suntien Green Energy Corp. Ltd. - H Shares | 361,754 | ||||||
89,277 | Iberdrola SA | 1,158,384 | ||||||
14,896 | Nextera Energy Inc. | 1,054,786 | ||||||
11,027 | Ormat Technologies Inc. | 790,636 | ||||||
12,148 | Orsted AS | 646,498 | ||||||
4,574,812 | ||||||||
Renewable Equipment Manufacturing: 32.8% | ||||||||
29,446 | Canadian Solar Inc.* | 434,329 | ||||||
3,283 | Eaton Corp PLC | 1,029,385 | ||||||
4,096 | Enphase Energy Inc.* | 408,412 | ||||||
3,701 | First Solar Inc.* | 834,427 | ||||||
8,113 | Itron Inc.* | 802,863 | ||||||
9,798 | Legrand SA | 972,132 | ||||||
4,346 | Schneider Electric SE | 1,044,019 | ||||||
5,019 | Siemens AG | 933,806 | ||||||
3,091 | Solaredge Technologies Inc.* | 78,079 | ||||||
12,448 | TPI Composites Inc.* | 49,668 | ||||||
32,101 | Vestas Wind Systems A/S | 743,319 | ||||||
928,200 | Xinyi Solar Holdings Ltd. | 467,134 | ||||||
7,797,573 |
The accompanying notes are an integral part of these financial statements.
Page 3 |
GUINNESS ATKINSON ALTERNATIVE ENERGY FUND
Schedule of Investments
at June 30, 2024 (Unaudited)
Shares | Common Stocks: 98.6% | Value | ||||||
Total Common Stocks (cost $28,114,906) | 23,447,292 | |||||||
Total Investments in Securities (cost $28,114,906): 98.6% | $ | 23,447,292 | ||||||
Other Assets less Liabilities: 1.4% | 337,682 | |||||||
Net Assets: 100.0% | $ | 23,784,974 |
* | Non-income producing security. |
PLC - Public Limited Company
The accompanying notes are an integral part of these financial statements.
Page 4 |
GUINNESS ATKINSON ASIA FOCUS FUND
Schedule of Investments
at June 30, 2024 (Unaudited)
Shares | Common Stocks: 99.8% | Value | ||||||
Australia: 5.7% | ||||||||
28,819 | Corporate Travel Management Ltd. | $ | 254,926 | |||||
19,149 | Sonic Healthcare Ltd. | 335,964 | ||||||
590,890 | ||||||||
China: 50.8% | ||||||||
22,600 | Alibaba Group Holding Ltd. | 204,035 | ||||||
1,700 | Alibaba Group Holding Ltd. - ADR | 122,400 | ||||||
15,120 | Autohome Inc. - ADR | 415,044 | ||||||
3,400 | Baidu Inc. - ADR* | 294,032 | ||||||
293,000 | China Medical System Holdings Ltd. | 248,389 | ||||||
66,500 | China Merchants Bank Co., Ltd. - H Shares | 301,888 | ||||||
205,000 | Geely Automobile Holdings Ltd. | 230,754 | ||||||
100,700 | Inner Mongolia Yili Industrial Group Co., Ltd. - A Shares | 356,445 | ||||||
380 | JD.com In. - CL A | 5,027 | ||||||
11,260 | JD.com Inc. - ADR | 290,958 | ||||||
800 | Meituan - Class B* | 11,382 | ||||||
132,909 | NARI Technology Co., Ltd. - A Shares | 454,433 | ||||||
5,200 | NetEase Inc. - ADR | 497,016 | ||||||
49,000 | Ping An Insurance Group Company of China Ltd. - H Shares | 222,130 | ||||||
114,600 | Sany Heavy Industry Co., Ltd. - A Shares | 259,024 | ||||||
44,300 | Shenzhou International | 433,699 | ||||||
417,000 | Sino Biopharmaceutical Ltd. | 142,579 | ||||||
8,000 | Tencent Holdings Ltd. | 381,511 | ||||||
108,400 | Venustech Group Inc. - A Shares | 256,296 | ||||||
71,960 | Wuxi Lead Intelligent Equipment Co., Ltd. - A Shares | 163,929 | ||||||
5,290,971 | ||||||||
Singapore: 4.4% | ||||||||
17,318 | DBS Group Holdings Ltd. | 457,088 | ||||||
South Korea: 7.9% | ||||||||
65,683 | Hanon Systems | 225,137 | ||||||
10,050 | Samsung Electronics Co., Ltd. | 593,550 | ||||||
818,687 | ||||||||
Taiwan: 16.8% | ||||||||
41,000 | Elite Material Co., Ltd. | 599,065 | ||||||
4,800 | Largan Precision Co., Ltd. | 405,303 | ||||||
2 | Shin Zu Shing Co., Ltd. | 15 | ||||||
25,000 | Taiwan Semiconductor Manufacturing Co., Ltd. | 742,871 | ||||||
1,747,254 |
The accompanying notes are an integral part of these financial statements.
Page 5 |
GUINNESS ATKINSON ASIA FOCUS FUND
Schedule of Investments
at June 30, 2024 (Unaudited)
Shares | Common Stocks: 99.8% | Value | ||||||
United States: 14.2% | ||||||||
2,936 | Applied Materials Inc. | $ | 692,867 | |||||
490 | Broadcom Inc. | 786,710 | ||||||
1,479,577 | ||||||||
Total Common Stocks (cost $8,560,979) | 10,384,467 | |||||||
Total Investments in Securities (cost $8,560,979): 99.8% | 10,384,467 | |||||||
Other Assets less Liabilities: 0.2% | 23,010 | |||||||
Net Assets: 100.0% | $ | 10,407,477 |
* | Non-income producing security. |
ADR - American Depository Receipt
The accompanying notes are an integral part of these financial statements.
Page 6 |
GUINNESS ATKINSON CHINA & HONG KONG FUND
Schedule of Investments
at June 30, 2024 (Unaudited)
Shares | Common Stocks: 99.9% | Value | ||||||
Appliances: 9.9% | ||||||||
238,800 | Haier Smart Home Co., Ltd. - H Shares | $ | 798,146 | |||||
93,700 | Midea Group Co., Ltd. | 827,886 | ||||||
118,309 | Zhejiang Supor Cookware - A Shares | 811,945 | ||||||
2,437,977 | ||||||||
Application Software: 3.3% | ||||||||
686,000 | TravelSky Technology, Ltd. | 804,687 | ||||||
Auto/Cars - Light Trucks: 4.0% | ||||||||
861,000 | Geely Automobile Holdings Ltd. | 969,169 | ||||||
Auto/Truck Parts & Equipment: 3.8% | ||||||||
491,480 | Weichai Power Co., Ltd. - H Shares | 940,294 | ||||||
Batteries/Battery System: 2.6% | ||||||||
284,540 | Wuxi Lead Intelligent Equipment Co., Ltd. - A Shares | 648,197 | ||||||
Commercial Banks: 3.9% | ||||||||
213,000 | China Merchants Bank Co., Ltd. - H Shares | 966,948 | ||||||
Computer Data Security: 2.5% | ||||||||
259,550 | Venustech Group Inc. - A Shares | 613,667 | ||||||
E-Commerce/Services: 6.7% | ||||||||
24,500 | Alibaba Group Holding Ltd. | 221,188 | ||||||
9,510 | Alibaba Group Holding Ltd. - ADR | 684,720 | ||||||
1,352 | JD.com Inc. | 17,885 | ||||||
28,300 | JD.com Inc. - ADR | 731,272 | ||||||
1,655,065 | ||||||||
Electronic Components: 2.2% | ||||||||
376,589 | Shenzhen H&T Intelligent Control Co., Ltd. - A Shares | 552,495 | ||||||
Energy-Alternate: 5.5% | ||||||||
299,370 | Hangzhou First Applied Materials Co., Ltd. | 602,833 | ||||||
1,489,987 | Xinyi Solar Holdings Ltd. | 749,864 | ||||||
1,352,697 | ||||||||
Finance: 3.5% | ||||||||
27,000 | Hong Kong Exchanges & Clearing Ltd. | 865,084 | ||||||
Food-Dairy Products: 6.6% | ||||||||
416,130 | Chongqing Fuling Zhacai Group Co., Ltd. - A Shares | 698,291 | ||||||
260,900 | Inner Mongolia Yili Industrial Group Co., Ltd. - A Shares | 923,502 | ||||||
1,621,793 | ||||||||
Home Furniture: 3.2% | ||||||||
375,700 | Suofeiya Home Collection - A Shares | 788,959 |
The accompanying notes are an integral part of these financial statements.
Page 7 |
GUINNESS ATKINSON CHINA & HONG KONG FUND
Schedule of Investments
at June 30, 2024 (Unaudited)
Shares | Common Stocks: 99.9% | Value | ||||||
Insurance: 6.4% | ||||||||
114,000 | AIA Group Ltd. | $ | 773,728 | |||||
175,500 | Ping An Insurance Group Company of China Ltd. - H Shares | 795,587 | ||||||
1,569,315 | ||||||||
Internet Application Software: 4.9% | ||||||||
25,200 | Tencent Holdings Ltd. | 1,201,760 | ||||||
Internet Content - Entertainment: 3.6% | ||||||||
9,285 | NetEase Inc. - ADR | 887,460 | ||||||
Machinery-General Industry: 10.9% | ||||||||
288,368 | NARI Technology Co., Ltd. - A Shares | 985,968 | ||||||
407,797 | Sany Heavy Industry Co., Ltd. - A Shares | 921,720 | ||||||
108,054 | Shenzhen Inovance Technology Co., Ltd. - A Shares | 759,328 | ||||||
2,667,016 | ||||||||
Pharmaceuticals: 6.4% | ||||||||
1,024,400 | CSPC Pharmaceutical Group Ltd. | 815,957 | ||||||
2,183,500 | Sino Biopharmaceutical Ltd. | 746,572 | ||||||
1,562,529 | ||||||||
Real Estate Operations/Development: 3.4% | ||||||||
476,000 | China Overseas Land & Investments Ltd. | 825,340 | ||||||
Retail - Apparel/Shoe: 3.6% | ||||||||
90,000 | Shenzhou International Group Holdings Ltd. | 881,104 | ||||||
Web Portals: 3.0% | ||||||||
8,510 | Baidu Inc. - ADR* | 735,945 | ||||||
Total Common Stocks (cost $33,246,951) | 24,547,501 | |||||||
Total Investments in Securities (cost $33,246,951): 99.9% | 24,547,501 | |||||||
Other Assets less Liabilities: 0.1% | 10,128 | |||||||
Net Assets: 100.0% | $ | 24,557,629 |
* | Non-income producing security. |
ADR - American Depository Receipt
The accompanying notes are an integral part of these financial statements.
Page 8 |
GUINNESS ATKINSON GLOBAL ENERGY FUND
Schedule of Investments
at June 30, 2024 (Unaudited)
Shares | Common Stocks: 99.3% | Value | ||||||
Oil & Gas - Exploration & Production: 19.9% | ||||||||
12,144 | Canadian Natural Resources Ltd. | 432,522 | ||||||
4,767 | ConocoPhillips | 545,249 | ||||||
93,640 | Deltic Energy PLC* | 8,581 | ||||||
7,913 | Devon Energy Corp. | 375,076 | ||||||
2,270 | Diamondback Energy Inc. | 454,431 | ||||||
2,075 | Diversified Energy Co PLC | 27,539 | ||||||
213,942 | EnQuest PLC* | 36,723 | ||||||
3,223 | EOG Resources Inc. | 405,679 | ||||||
127,428 | Pharos Energy PLC | 37,046 | ||||||
5,221,570 | Reabold Resources PLC* | 4,455 | ||||||
2,327,301 | ||||||||
Oil & Gas - Field Services: 9.8% | ||||||||
7,205 | Baker Hughes Company | 253,400 | ||||||
10,847 | Halliburton Company | 366,412 | ||||||
10,795 | Helix Energy Solutions Group, Inc.* | 128,892 | ||||||
8,387 | Schlumberger Ltd. | 395,699 | ||||||
1,144,403 | ||||||||
Oil & Gas - Integrated: 57.9% | ||||||||
92,972 | BP PLC | 558,439 | ||||||
20,745 | Cenovus Energy Inc. | 407,713 | ||||||
4,116 | Chevron Corp. | 643,825 | ||||||
25,156 | Eni SpA | 386,727 | ||||||
14,410 | Equinor ASA | 410,253 | ||||||
5,754 | Exxon Mobil Corp. | 662,401 | ||||||
21,143 | Galp Energia Sgps Sa | 446,543 | ||||||
6,832 | Imperial Oil Ltd. | 465,786 | ||||||
7,017 | OMV AG | 305,568 | ||||||
312,000 | PetroChina Co., Ltd. - H Shares | 315,638 | ||||||
26,760 | Repsol SA | 422,305 | ||||||
18,490 | Shell PLC | 665,275 | ||||||
11,880 | Suncor Energy, Inc. | 452,815 | ||||||
9,287 | Total Energies SE | 619,958 | ||||||
6,763,246 | ||||||||
Oil & Gas - Pipelines and Transportation: 5.5% | ||||||||
9,045 | Enbridge Inc. | 321,912 | ||||||
16,213 | Kinder Morgan Inc. | 322,152 | ||||||
644,064 |
The accompanying notes are an integral part of these financial statements.
Page 9 |
GUINNESS ATKINSON GLOBAL ENERGY FUND
Schedule of Investments
at June 30, 2024 (Unaudited)
Shares | Common Stocks: 99.3% | Value | ||||||
Oil Refining & Marketing: 6.2% | ||||||||
314,000 | China Petroleum & Chemical | $ | 203,464 | |||||
3,321 | Valero Energy, Corp. | 520,600 | ||||||
724,064 | ||||||||
Total Common Stocks (cost $12,448,896) | 11,603,078 | |||||||
Total Investments in Securities (cost $12,448,896): 99.3% | 11,603,078 | |||||||
Other Assets less Liabilities: 0.7% | 75,596 | |||||||
Net Assets: 100.0% | $ | 11,678,674 |
* | Non-income producing security. |
PLC - Public Limited Company
The accompanying notes are an integral part of these financial statements.
Page 10 |
GUINNESS ATKINSON GLOBAL INNOVATORS FUND
Schedule of Investments
at June 30, 2024 (Unaudited)
Shares | Common Stocks: 97.2% | Value | ||||||
Application Software: 10.7% | ||||||||
11,592 | Intuit Inc. | $ | 7,618,378 | |||||
19,542 | Microsoft Corp. | 8,734,297 | ||||||
26,432 | salesforce.com Inc. | 6,795,667 | ||||||
23,148,342 | ||||||||
Athletic Footwear: 1.6% | ||||||||
47,392 | NIKE Inc. | 3,571,935 | ||||||
Commercial Services: 2.3% | ||||||||
87,549 | PayPal Holdings, Inc.* | 5,080,468 | ||||||
Computers: 2.9% | ||||||||
29,832 | Apple Inc. | 6,283,216 | ||||||
Diversified Manufacturing Operations: 8.6% | ||||||||
25,334 | Danaher Corp. | 6,329,700 | ||||||
12,239 | Roper Industries, Inc. | 6,898,635 | ||||||
9,612 | Thermo Fisher Scientific Inc. | 5,315,436 | ||||||
18,543,771 | ||||||||
E-Commerce: 3.0% | ||||||||
33,472 | Amazon.com Inc.* | 6,468,464 | ||||||
Electronic Components - Semiconductor: 10.3% | ||||||||
142,336 | Amphenol Corporation | 9,589,176 | ||||||
133,048 | Infineon Technologies AG | 4,888,271 | ||||||
64,466 | NVIDIA Corp. | 7,964,130 | ||||||
22,441,577 | ||||||||
Enterprise Software/Services: 2.5% | ||||||||
9,587 | Adobe Inc.* | 5,325,962 | ||||||
Finance - Other Services: 12.3% | ||||||||
47,490 | Intercontinental Exchange, Inc. | 6,500,906 | ||||||
57,846 | London Stock Exchange Group PL | 6,873,030 | ||||||
15,772 | Mastercard Inc. | 6,957,976 | ||||||
24,518 | Visa Inc. | 6,435,239 | ||||||
26,767,151 | ||||||||
Internet Content: 3.7% | ||||||||
15,977 | Meta Platforms Inc. - Class A | 8,055,923 |
The accompanying notes are an integral part of these financial statements.
Page 11 |
GUINNESS ATKINSON GLOBAL INNOVATORS FUND
Schedule of Investments
at June 30, 2024 (Unaudited)
Shares | Common Stocks: 97.2% | Value | ||||||
Machinery - Electric Utility: 4.2% | ||||||||
164,851 | ABB Ltd. | $ | 9,160,020 | |||||
Medical Instrument: 5.0% | ||||||||
55,777 | Medtronic PLC | 4,390,208 | ||||||
113,749 | Siemens Healthineers AG | 6,554,194 | ||||||
10,944,402 | ||||||||
Pharmaceutical: 3.5% | ||||||||
52,698 | Novo Nordisk A/S | 7,609,852 | ||||||
Power Conversion/Supply Equipment: 3.7% | ||||||||
32,957 | Schneider Electric SE | 7,917,105 | ||||||
Retail - Apparel: 2.7% | ||||||||
608,800 | ANTA Sports Products Ltd. | 5,847,137 | ||||||
Semiconductor: 16.8% | ||||||||
39,188 | Applied Materials Inc. | 9,247,976 | ||||||
11,724 | KLA-Tencor Corp. | 9,666,555 | ||||||
8,349 | Lam Research Corp. | 8,890,433 | ||||||
49,555 | Taiwan Semiconductor Manufacturing Co. Ltd. - ADR | 8,613,155 | ||||||
36,418,119 | ||||||||
Web Portals: 3.4% | ||||||||
40,841 | Alphabet Inc. - A Shares* | 7,439,188 | ||||||
Total Common Stocks (cost $101,328,563) | 211,022,632 | |||||||
Total Investments in Securities (cost $101,328,563): 97.2% | 211,022,632 | |||||||
Other Assets less Liabilities: 2.8% | 6,125,072 | |||||||
Net Assets: 100.0% | $ | 217,147,704 |
* | Non-income producing security. |
ADR - American Depository Receipt
PLC - Public Limited Company
The accompanying notes are an integral part of these financial statements.
Page 12 |
GUINNESS ATKINSON RENMINBI YUAN & BOND FUND
Schedule of Investments
at June 30, 2024 (Unaudited)
Principal Amount (CNH) | Corporate Bonds: 63.1% | Value | ||||||
Commercial Banks: 37.9% | ||||||||
1,000,000 | Bank of China, 3.080%, 04/28/26 | 137,586 | ||||||
4,000,000 | First Abu Dhabi Bank, 3.400%, 08/18/25 | 549,795 | ||||||
1,000,000 | QNB Finance Ltd., 3.800%, 06/17/25 | 137,762 | ||||||
1,000,000 | QNB Finance Ltd., 3.900%, 06/17/25 | 137,377 | ||||||
2,000,000 | Standard Chartered PLC 4.350%, 03/18/26 | 276,651 | ||||||
1,239,171 | ||||||||
Diversified Banks: 4.2% | ||||||||
1,000,000 | HSBC Holding, 3.400%, 06/29/27 | 137,739 | ||||||
Export/Import Bank: 8.4% | ||||||||
1,000,000 | Agriculture Development Bank of China 3.400%, 11/06/24 | 137,401 | ||||||
1,000,000 | China Development Bank, 3.230%, 11/27/25 | 138,260 | ||||||
275,661 | ||||||||
Municipal City: 4.2% | ||||||||
1,000,000 | Municipality of Shenzhen China, 2.900%, 10/19/26 | 137,382 | ||||||
Real Estate Operator/Developer: 4.2% | ||||||||
1,000,000 | Sun Hung Kai Properties 3.200%, 08/14/27 | 136,820 | ||||||
1,000,000 | Zhenro Properties Group Ltd., 8.000%, 03/06/23 | 1,112 | ||||||
137,932 | ||||||||
Storage/Warehousing: 4.2% | ||||||||
1,000,000 | GLP China Holding Ltd., 4.000%, 07/02/24 | 136,112 | ||||||
Total Corporate Bonds (cost $2,410,231) | 2,063,997 | |||||||
Total Investments in Securities (cost $2,410,231): 63.1% | 2,063,997 | |||||||
China Yuan (Offshore): 41.2% | 1,346,038 | |||||||
Liabilities less Other Assets: -4.3% | (139,760 | ) | ||||||
Net Assets: 100.0% | $ | 3,270,275 |
CNH - The official currency of the People’s Republic of China.
The accompanying notes are an integral part of these financial statements.
Page 13 |
GUINNESS ATKINSON™ FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
at June 30, 2024 (Unaudited)
Alternative Energy Fund | Asia Focus Fund | China & Hong Kong Fund | ||||||||||
Assets | ||||||||||||
Investments in securities, at cost | $ | 28,114,906 | $ | 8,560,979 | $ | 33,246,951 | ||||||
Investments in securities, at value | $ | 23,447,292 | $ | 10,384,467 | $ | 24,547,501 | ||||||
Cash | 329,357 | - | - | |||||||||
Cash denominated in foreign currency (cost of $0, $27,033 and $245,577, respectively) | - | 26,976 | 244,779 | |||||||||
Receivables: | ||||||||||||
Securities sold | - | - | - | |||||||||
Fund shares sold | 2,937 | - | 1,000 | |||||||||
Dividends and interest | 82,910 | 31,510 | 156,054 | |||||||||
Tax reclaim | 14,833 | - | - | |||||||||
Due from Advisor, net | - | - | - | |||||||||
Prepaid expenses | 13,338 | 11,525 | 9,613 | |||||||||
Total Assets | 23,890,667 | 10,454,478 | 24,958,947 | |||||||||
Liabilities | ||||||||||||
Overdraft due to custodian bank | - | 697 | 317,576 | |||||||||
Payable for Fund shares redeemed | 39,196 | - | - | |||||||||
Due to Advisor, net | 4,901 | 5,298 | 21,728 | |||||||||
Accrued administration fees | 2,529 | 739 | 2,772 | |||||||||
Accrued shareholder servicing plan fees | 13,441 | 3,065 | 4,877 | |||||||||
Audit fees | 9,422 | 12,546 | 12,700 | |||||||||
CCO fees | 3,037 | 2,136 | 3,448 | |||||||||
Custody fees | 4,264 | 3,809 | 5,468 | |||||||||
Fund Accounting fees | 6,863 | 5,931 | 4,389 | |||||||||
Legal fees | 7,823 | 2,644 | 10,450 | |||||||||
Miscellaneous fees | 650 | 417 | 366 | |||||||||
Printing fees | 6,282 | 3,898 | 5,023 | |||||||||
Transfer Agent fees | 7,057 | 5,154 | 10,062 | |||||||||
Trustee fees | 228 | 667 | 2,459 | |||||||||
Total Liabilities | 105,693 | 47,001 | 401,318 | |||||||||
Net Assets | $ | 23,784,974 | $ | 10,407,477 | $ | 24,557,629 | ||||||
Composition of Net Assets | ||||||||||||
Paid-in capital | $ | 56,645,899 | $ | 8,328,247 | $ | 33,087,573 | ||||||
Total distributable earnings (loss) | (32,860,925 | ) | 2,079,230 | (8,529,944 | ) | |||||||
Net Assets | $ | 23,784,974 | $ | 10,407,477 | $ | 24,557,629 | ||||||
Number of shares issued and outstanding (unlimited shares authorized, no par value) | 4,313,041 | 699,627 | 2,077,722 | |||||||||
Net asset value per share | $ | 5.51 | $ | 14.88 | $ | 11.82 |
The accompanying notes are an integral part of these financial statements.
Page 14 |
GUINNESS ATKINSON™ FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
at June 30, 2024 (Unaudited)
Global Energy Fund | Global Innovators Fund | Renminbi Yuan & Bond Fund | ||||||||||
Assets | ||||||||||||
Investments in securities, at cost | $ | 12,448,896 | $ | 101,328,563 | $ | 2,410,231 | ||||||
Investments in securities, at value | $ | 11,603,078 | $ | 211,022,632 | $ | 2,063,997 | ||||||
Cash | 7,152 | 5,853,993 | - | |||||||||
Cash denominated in foreign currency (cost of $8,998, $0, and $1,358,007, respectively) | 8,998 | - | 1,346,038 | |||||||||
Receivables: | ||||||||||||
Fund shares sold | 100 | 142,572 | - | |||||||||
Dividends and interest | 24,104 | 130,567 | 27,125 | |||||||||
Tax reclaim | 64,366 | 287,533 | - | |||||||||
Due from Advisor, net | - | - | 4,807 | |||||||||
Prepaid expenses | 14,215 | 32,787 | 11,334 | |||||||||
Total Assets | 11,722,013 | 217,470,084 | 3,453,301 | |||||||||
Liabilities | ||||||||||||
Overdraft due to custodian bank | - | - | 159,612 | |||||||||
Payable for Fund shares redeemed | 2,574 | 77,971 | - | |||||||||
Due to Advisor, net | 1,310 | 130,050 | - | |||||||||
Accrued administration fees | 1,489 | 15,301 | 927 | |||||||||
Accrued shareholder servicing plan fees | 4,763 | 30,141 | 1,034 | |||||||||
Audit fees | 12,967 | 12,702 | 6,203 | |||||||||
CCO fees | 1,900 | 3,229 | 1,833 | |||||||||
Custody fees | 1,844 | 6,511 | 1,146 | |||||||||
Fund Accounting fees | 4,415 | 4,634 | 4,157 | |||||||||
Legal fees | 5,747 | 21,252 | 1,636 | |||||||||
Miscellaneous fees | 421 | 583 | 238 | |||||||||
Printing fees | 2,294 | 6,550 | 1,541 | |||||||||
Transfer Agent fees | 3,127 | 12,276 | 2,834 | |||||||||
Trustee fees | 488 | 1,180 | 1,865 | |||||||||
Total Liabilities | 43,339 | 322,380 | 183,026 | |||||||||
Net Assets | $ | 11,678,674 | $ | 217,147,704 | $ | 3,270,275 | ||||||
Composition of Net Assets | ||||||||||||
Paid-in capital | $ | 37,903,301 | $ | 96,300,212 | $ | 7,944,716 | ||||||
Total distributable earnings (loss) | (26,224,627 | ) | 120,847,492 | (4,674,441 | ) | |||||||
Net Assets | $ | 11,678,674 | $ | 217,147,704 | $ | 3,270,275 | ||||||
Number of shares issued and outstanding (unlimited shares authorized, no par value) | 453,763 | - | 293,835 | |||||||||
Net asset value per share | $ | 25.74 | - | $ | 11.13 | |||||||
Net asset value per share per Class: | ||||||||||||
Investor Class shares: | ||||||||||||
Net assets applicable to shares outstanding | $ | 162,742,402 | ||||||||||
Shares of beneficial interest issued and outstanding | 2,631,287 | |||||||||||
Net asset value per share | $ | 61.85 | ||||||||||
Institutional Class shares: | ||||||||||||
Net assets applicable to shares outstanding | $ | 54,405,302 | ||||||||||
Shares of beneficial interest issued and outstanding | 863,542 | |||||||||||
Net asset value per share | $ | 63.00 |
The accompanying notes are an integral part of these financial statements.
Page 15 |
GUINNESS ATKINSON™ FUNDS
STATEMENTS OF OPERATIONS
For the Six Months Ended June 30, 2024 (Unaudited)
Alternative Energy Fund | Asia Focus Fund | China & Hong Kong Fund | ||||||||||
Investment Income | ||||||||||||
Dividends* | $ | 205,360 | $ | 125,456 | $ | 511,315 | ||||||
Total income | 205,360 | 125,456 | 511,315 | |||||||||
Expenses | ||||||||||||
Advisory fees | 101,645 | 51,616 | 131,732 | |||||||||
Shareholder servicing plan fees | 30,475 | 6,194 | 12,623 | |||||||||
Transfer agent fees and expenses | 19,892 | 13,040 | 24,645 | |||||||||
Fund accounting fee and expenses | 8,359 | 6,956 | 5,772 | |||||||||
Administration fees | 7,624 | 2,477 | 6,904 | |||||||||
Custody fees and expenses | 7,791 | 7,149 | 15,650 | |||||||||
Audit fees | 9,125 | 12,465 | 12,465 | |||||||||
Legal fees | 14,070 | 4,794 | 15,069 | |||||||||
Registration fees | 10,969 | 8,776 | 10,969 | |||||||||
Printing | 8,448 | 5,688 | 4,284 | |||||||||
Trustees' fees and expenses | 4,762 | 3,890 | 5,143 | |||||||||
Insurance | 1,068 | 630 | 2,171 | |||||||||
CCO fees and expenses | 5,607 | 3,722 | 4,684 | |||||||||
Miscellaneous | 3,120 | 2,442 | 2,565 | |||||||||
Interest expense | 704 | 68 | 1,883 | |||||||||
Total expenses | 233,659 | 129,907 | 256,559 | |||||||||
Less: fees waived and expenses absorbed | (93,194 | ) | (27,640 | ) | - | |||||||
Net expenses | 140,465 | 102,267 | 256,559 | |||||||||
Net Investment Income (Loss) | 64,895 | 23,189 | 254,756 | |||||||||
Realized and Unrealized Gain (Loss) on Investments and Foreign Currency | ||||||||||||
Net realized gain (loss) on: | ||||||||||||
Investments | 998,122 | 342,605 | 658,737 | |||||||||
Foreign currency | (1,280 | ) | (639 | ) | (97 | ) | ||||||
996,842 | 341,966 | 658,640 | ||||||||||
Net change in unrealized appreciation (depreciation) on: | ||||||||||||
Investments | (2,113,029 | ) | (347,337 | ) | (3,215,939 | ) | ||||||
Foreign currency | (701 | ) | (202 | ) | (713 | ) | ||||||
(2,113,730 | ) | (347,539 | ) | (3,216,652 | ) | |||||||
Net realized and unrealized gain on investments and foreign currency | (1,116,888 | ) | (5,573 | ) | (2,558,012 | ) | ||||||
Net Increase (Decrease) in Net Assets from Operations | $ | (1,051,993 | ) | $ | 17,616 | $ | (2,303,256 | ) |
* | Net of foreign tax withheld of $15,265, $8,893, and $32,457, respectively. |
The accompanying notes are an integral part of these financial statements.
Page 16 |
GUINNESS ATKINSON™ FUNDS
STATEMENTS OF OPERATIONS
For the Six Months Ended June 30, 2024 (Unaudited)
Global Energy Fund | Global Innovators Fund | Renminbi Yuan & Bond Fund | ||||||||||
Investment Income | ||||||||||||
Dividends* | $ | 256,165 | $ | 1,226,141 | $ | - | ||||||
Interest | - | - | 41,396 | |||||||||
Total income | 256,165 | 1,226,141 | 41,396 | |||||||||
Expenses | ||||||||||||
Advisory fees | 44,463 | 754,312 | 9,841 | |||||||||
Shareholder servicing plan fees | 11,264 | - | 895 | |||||||||
Investor Class | - | 135,392 | - | |||||||||
Transfer agent fees and expenses | 10,583 | - | 8,324 | |||||||||
Investor Class | - | 31,157 | - | |||||||||
Institutional Class | - | 11,124 | - | |||||||||
Fund accounting fee and expenses | 5,120 | 12,851 | 4,271 | |||||||||
Administration fees | 2,846 | 44,643 | 1,359 | |||||||||
Institutional Class | - | 17,555 | - | |||||||||
Custody fees and expenses | 7,055 | 9,653 | 1,505 | |||||||||
Audit fees | 12,465 | 12,465 | 6,483 | |||||||||
Legal fees | 7,239 | 95,065 | 1,660 | |||||||||
Registration fees | 8,976 | - | 9,224 | |||||||||
Investor Class | - | 11,717 | - | |||||||||
Institutional Class | - | 10,123 | - | |||||||||
Printing | 4,838 | 9,774 | 3,492 | |||||||||
Trustees' fees and expenses | 3,592 | 25,885 | 4,290 | |||||||||
Insurance | 766 | 8,008 | 218 | |||||||||
CCO fees and expenses | 3,982 | 19,650 | 2,948 | |||||||||
Miscellaneous | 2,499 | 5,265 | 2,276 | |||||||||
Interest expense | 476 | - | 541 | |||||||||
Total expenses | 126,164 | 1,214,639 | 57,327 | |||||||||
Less: fees waived and expenses absorbed | (39,726 | ) | (30,902 | ) | (40,682 | ) | ||||||
Net expenses | 86,438 | 1,183,737 | 16,645 | |||||||||
Net Investment Income (Loss) | 169,727 | 42,404 | 24,751 | |||||||||
Realized and Unrealized Gain (Loss) on Investments and Foreign Currency | ||||||||||||
Net realized gain (loss) on: | ||||||||||||
Investments | 306,162 | 11,065,160 | 46,589 | |||||||||
Foreign currency | (620 | ) | (16,350 | ) | 4,271 | |||||||
305,542 | 11,048,810 | 50,860 | ||||||||||
Net change in unrealized appreciation (depreciation) on: | ||||||||||||
Investments | 672,530 | 22,643,980 | (71,760 | ) | ||||||||
Foreign currency | (1,546 | ) | (14,922 | ) | (25,411 | ) | ||||||
670,984 | 22,629,058 | (97,171 | ) | |||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 976,526 | 33,677,868 | (46,311 | ) | ||||||||
Net Increase (Decrease) in Net Assets from Operations | $ | 1,146,253 | $ | 33,720,272 | $ | (21,560 | ) |
* | Net of foreign tax withheld of $26,899, $86,312, and $0, respectively. |
The accompanying notes are an integral part of these financial statements.
Page 17 |
GUINNESS ATKINSON™ FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
Alternative Energy Fund | Asia Focus Fund | |||||||||||||||
Six Months Ended June 30, 2024† | Year Ended December 31, 2023 | Six Months Ended June 30, 2024† | Year Ended December 31, 2023 | |||||||||||||
INCREASE/(DECREASE) IN NET ASSETS FROM: | ||||||||||||||||
Operations | ||||||||||||||||
Net investment income (loss) | $ | 64,895 | $ | (95,118 | ) | $ | 23,189 | $ | 47,650 | |||||||
Net realized gain (loss) on: | ||||||||||||||||
Investments | 998,122 | 1,538,656 | 342,605 | 103,513 | ||||||||||||
Foreign currency | (1,280 | ) | (8,719 | ) | (639 | ) | (1,524 | ) | ||||||||
Net change in unrealized appreciation (depreciation) on: | ||||||||||||||||
Investments | (2,113,029 | ) | (2,677,379 | ) | (347,337 | ) | 486,800 | |||||||||
Foreign currency | (701 | ) | 1,105 | (202 | ) | 747 | ||||||||||
Net increase (decrease) in net assets resulting from operations | (1,051,993 | ) | (1,241,455 | ) | 17,616 | 637,186 | ||||||||||
Distributions to Shareholders | ||||||||||||||||
Net dividends and distributions | - | - | - | (126,416 | ) | |||||||||||
Total distributions to shareholders | - | - | - | (126,416 | ) | |||||||||||
Capital Transactions | ||||||||||||||||
Proceeds from shares sold | 2,345,858 | 11,709,728 | 7,944 | 190,960 | ||||||||||||
Reinvestment of distributions | - | - | - | 104,208 | ||||||||||||
Cost of shares redeemed | (6,054,413 | ) | (9,390,945 | ) | (513,215 | ) | (927,296 | ) | ||||||||
Net change in net assets from capital transactions | (3,708,555 | ) | 2,318,783 | (505,271 | ) | (632,128 | ) | |||||||||
Total increase (decrease) in net assets | (4,760,548 | ) | 1,077,328 | (487,655 | ) | (121,358 | ) | |||||||||
Net Assets | ||||||||||||||||
Beginning of period | 28,545,522 | 27,468,194 | 10,895,132 | 11,016,490 | ||||||||||||
End of period | $ | 23,784,974 | $ | 28,545,522 | $ | 10,407,477 | $ | 10,895,132 | ||||||||
Capital Share Activity | ||||||||||||||||
Shares sold | 420,659 | 1,921,700 | 557 | 13,127 | ||||||||||||
Shares issued on reinvestment | - | - | - | 7,454 | ||||||||||||
Shares redeemed | (1,098,495 | ) | (1,619,638 | ) | (35,831 | ) | (63,069 | ) | ||||||||
Net increase (decrease) in shares outstanding | (677,836 | ) | 302,062 | (35,274 | ) | (42,488 | ) |
† | Unaudited |
The accompanying notes are an integral part of these financial statements.
Page 18 |
GUINNESS ATKINSON™ FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
China & Hong Kong Fund | ||||||||
Six Months Ended June 30, 2024† | Year Ended December 31, 2023 | |||||||
INCREASE/(DECREASE) IN NET ASSETS FROM: | ||||||||
Operations | ||||||||
Net investment income | $ | 254,756 | $ | 124,083 | ||||
Net realized gain (loss) on: | ||||||||
Investments | 658,737 | (283,913 | ) | |||||
Foreign currency | (97 | ) | (12,816 | ) | ||||
Net change in unrealized appreciation (depreciation) on: | ||||||||
Investments | (3,215,939 | ) | (5,122,961 | ) | ||||
Foreign currency | (713 | ) | 7,154 | |||||
Net decrease in net assets resulting from operations | (2,303,256 | ) | (5,288,453 | ) | ||||
Distributions to Shareholders | ||||||||
Net dividends and distributions | - | (217,472 | ) | |||||
Total distributions to shareholders | - | (217,472 | ) | |||||
Capital Transactions | ||||||||
Proceeds from shares sold | 336,598 | 428,509 | ||||||
Reinvestment of distributions | - | 205,736 | ||||||
Cost of shares redeemed | (2,092,260 | ) | (4,632,033 | ) | ||||
Net change in net assets from capital transactions | (1,755,662 | ) | (3,997,788 | ) | ||||
Total decrease in net assets | (4,058,918 | ) | (9,503,713 | ) | ||||
Net Assets | ||||||||
Beginning of period | 28,616,547 | 38,120,260 | ||||||
End of period | $ | 24,557,629 | $ | 28,616,547 | ||||
Capital Share Activity | ||||||||
Shares sold | 26,872 | 28,554 | ||||||
Shares issued on reinvestment | - | 16,498 | ||||||
Shares redeemed | (173,275 | ) | (334,631 | ) | ||||
Net decrease in shares outstanding | (146,403 | ) | (289,579 | ) |
† | Unaudited |
The accompanying notes are an integral part of these financial statements.
Page 19 |
GUINNESS ATKINSON™ FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
Global Energy Fund | ||||||||
Six Months Ended June 30, 2024† | Year Ended December 31, 2023 | |||||||
INCREASE/(DECREASE) IN NET ASSETS FROM: | ||||||||
Operations | ||||||||
Net investment income | $ | 169,727 | $ | 355,529 | ||||
Net realized gain (loss) on: | ||||||||
Investments | 306,162 | 488,787 | ||||||
Foreign currency | (620 | ) | (5,773 | ) | ||||
Net change in unrealized appreciation (depreciation) on: | ||||||||
Investments | 672,530 | (760,540 | ) | |||||
Foreign currency | (1,546 | ) | 1,572 | |||||
Net increase (decrease) in net assets resulting from operations | 1,146,253 | 79,575 | ||||||
Distributions to Shareholders | ||||||||
Net dividends and distributions | - | (503,890 | ) | |||||
Total distributions to shareholders | - | (503,890 | ) | |||||
Capital Transactions | ||||||||
Proceeds from shares sold | 639,275 | 2,669,252 | ||||||
Reinvestment of distributions | - | 479,183 | ||||||
Cost of shares redeemed | (2,203,972 | ) | (6,846,920 | ) | ||||
Net change in net assets from capital transactions | (1,564,697 | ) | (3,698,485 | ) | ||||
Total increase (decrease) in net assets | (418,444 | ) | (4,122,800 | ) | ||||
Net Assets | ||||||||
Beginning of period | 12,097,118 | 16,219,918 | ||||||
End of period | $ | 11,678,674 | $ | 12,097,118 | ||||
Capital Share Activity | ||||||||
Shares sold | 26,358 | 112,039 | ||||||
Shares issued on reinvestment | - | 21,063 | ||||||
Shares redeemed | (90,343 | ) | (297,297 | ) | ||||
Net decrease in shares outstanding | (63,985 | ) | (164,195 | ) |
† | Unaudited |
The accompanying notes are an integral part of these financial statements.
Page 20 |
GUINNESS ATKINSON™ FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
Global Innovators Fund | ||||||||
Six Months Ended June 30, 2024† | Year Ended December 31, 2023 | |||||||
INCREASE/(DECREASE) IN NET ASSETS FROM: | ||||||||
Operations | ||||||||
Net investment loss | $ | 42,404 | $ | (381,497 | ) | |||
Net realized gain (loss) on: | ||||||||
Investments | 11,065,160 | 6,288,736 | ||||||
Foreign currency | (16,350 | ) | 5,063 | |||||
Net change in unrealized appreciation (depreciation) on: | ||||||||
Investments | 22,643,980 | 46,157,466 | ||||||
Foreign currency | (14,922 | ) | 22,558 | |||||
Net increase (decrease) in net assets resulting from operations | 33,720,272 | 52,092,326 | ||||||
Distributions to Shareholders | ||||||||
Net dividends and distributions: | ||||||||
Investor Class | - | (5,090,318 | ) | |||||
Institutional Class | - | (1,712,410 | ) | |||||
Total distributions to shareholders | - | (6,802,728 | ) | |||||
Capital Transactions | ||||||||
Proceeds from shares sold: | ||||||||
Investor Class | 9,272,876 | 11,892,338 | ||||||
Institutional Class | 3,380,596 | 6,158,411 | ||||||
Reinvestment of distributions: | ||||||||
Investor Class | - | 4,925,474 | ||||||
Institutional Class | - | 1,010,252 | ||||||
Cost of shares redeemed: | ||||||||
Investor Class | (9,268,693 | ) | (13,753,946 | ) | ||||
Institutional Class | (3,846,761 | ) | (5,989,757 | ) | ||||
Net change in net assets from capital transactions | (461,982 | ) | 4,242,772 | |||||
Total increase (decrease) in net assets | 33,258,290 | 49,532,370 | ||||||
Net Assets | ||||||||
Beginning of period | 183,889,414 | 134,357,044 | ||||||
End of period | $ | 217,147,704 | $ | 183,889,414 | ||||
Capital Share Activity | ||||||||
Shares sold: | ||||||||
Investor Class | 161,698 | 244,865 | ||||||
Institutional Class | 58,065 | 128,038 | ||||||
Shares issued on reinvestment: | ||||||||
Investor Class | - | 98,628 | ||||||
Institutional Class | - | 19,887 | ||||||
Shares redeemed: | ||||||||
Investor Class | (162,925 | ) | (293,204 | ) | ||||
Institutional Class | (66,388 | ) | (126,312 | ) | ||||
Net decrease in shares outstanding | (9,550 | ) | 71,902 |
† | Unaudited |
The accompanying notes are an integral part of these financial statements.
Page 21 |
GUINNESS ATKINSON™ FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
Renminbi Yuan & Bond Fund | ||||||||
Six Months Ended June 30, 2024† | Year Ended December 31, 2023 | |||||||
INCREASE/(DECREASE) IN NET ASSETS FROM: | ||||||||
Operations | ||||||||
Net investment income | $ | 24,751 | $ | 85,574 | ||||
Net realized gain (loss) on: | ||||||||
Investments | 46,589 | (233,328 | ) | |||||
Foreign currency | 4,271 | (23,521 | ) | |||||
Net change in unrealized appreciation (depreciation) on: | ||||||||
Investments | (71,760 | ) | 147,559 | |||||
Foreign currency | (25,411 | ) | 9,058 | |||||
Net decrease in net assets resulting from operations | (21,560 | ) | (14,658 | ) | ||||
Distributions to Shareholders | ||||||||
Net dividends and distributions | - | (328 | ) | |||||
Return of capital | - | (23,720 | ) | |||||
Total distributions to shareholders | - | (24,048 | ) | |||||
Capital Transactions | ||||||||
Proceeds from shares sold | 7,472 | 308,641 | ||||||
Reinvestment of distributions | - | 21,124 | ||||||
Cost of shares redeemed | (496,573 | ) | (1,182,680 | ) | ||||
Net change in net assets from capital transactions | (489,101 | ) | (852,915 | ) | ||||
Total decrease in net assets | (510,661 | ) | (891,621 | ) | ||||
Net Assets | ||||||||
Beginning of period | 3,780,936 | 4,672,557 | ||||||
End of period | $ | 3,270,275 | $ | 3,780,936 | ||||
Capital Share Activity | ||||||||
Shares sold | 670 | 26,692 | ||||||
Shares issued on reinvestment | - | 1,888 | ||||||
Shares redeemed | (44,484 | ) | (105,664 | ) | ||||
Net decrease in shares outstanding | (43,814 | ) | (77,084 | ) |
† | Unaudited |
The accompanying notes are an integral part of these financial statements.
Page 22 |
FINANCIAL HIGHLIGHTS
For a capital share outstanding throughout each period.
Six Months Ended | Year Ended December 31, | |||||||||||||||||||||||
Alternative Energy Fund | June 30, 2024† | 2023 | 2022 | 2021 | 2020 | 2019 | ||||||||||||||||||
Net asset value, beginning of period | $ | 5.72 | $ | 5.86 | $ | 6.71 | $ | 6.19 | $ | 3.32 | $ | 2.55 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) | 0.02 | (0.02 | ) | (0.05 | ) | (0.06 | ) | (0.03 | ) | (0.01 | ) | |||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | (0.23 | ) | (0.12 | ) | (0.80 | ) | 0.58 | 2.90 | 0.78 | |||||||||||||||
Total from investment operations | (0.21 | ) | (0.14 | ) | (0.85 | ) | 0.52 | 2.87 | 0.77 | |||||||||||||||
Less distributions: | ||||||||||||||||||||||||
From net investment income | - | - | - | - | - | - | ||||||||||||||||||
Total distributions | - | - | - | - | - | - | ||||||||||||||||||
Net asset value, end of period | $ | 5.51 | $ | 5.72 | $ | 5.86 | $ | 6.71 | $ | 6.19 | $ | 3.32 | ||||||||||||
Total return | (3.67 | )%(1) | (2.39 | )% | (12.67 | %) | 8.40 | % | 86.45 | % | 30.20 | % | ||||||||||||
Ratios/supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (millions) | $ | 23.8 | $ | 28.5 | $ | 27.5 | $ | 32.2 | $ | 26.9 | $ | 9.2 | ||||||||||||
Ratio of expenses to average net assets: | ||||||||||||||||||||||||
Before fee waived/recaptured | 1.84 | %(2) | 1.79 | % | 1.90 | % | 1.73 | % | 2.46 | % | 3.00 | % | ||||||||||||
After fees waived/recaptured (3) | 1.11 | %(2)(4) | 1.48 | % | 1.98 | % | 1.98 | % | 1.98 | % | 1.98 | % | ||||||||||||
Ratio of net investment income (loss) to average net assets: | ||||||||||||||||||||||||
Before fees waived/recaptured | (0.22 | %)(2) | (0.62 | %) | (0.79 | %) | (0.61 | %) | (1.40 | %) | (1.15 | %) | ||||||||||||
After fees waived/recaptured | 0.01 | (2) | (0.31 | %) | (0.87 | %) | (0.86 | %) | (0.92 | %) | (0.13 | %) | ||||||||||||
Portfolio turnover rate | 11.04 | %(1) | 16.38 | % | 17.75 | % | 29.03 | % | 35.00 | % | 43.19 | % |
† | Unaudited |
(1) | Not annualized |
(2) | Annualized |
(3) | The Advisor has contractually agreed to limit the operating expenses of the Fund to 1.10%, prior to June 1, 2023, the limit on operating expenses was 1.98%, excluding interest expense, expenses related to dividends on short positions, brokerage commissions, taxes and other extraordinary expenses. See Note 3. |
(4) | If interest expense had been excluded, expenses would have been lowered by 0.01% for the period ended June 30, 2024. |
The accompanying notes are an integral part of these financial statements.
Page 23 |
FINANCIAL HIGHLIGHTS
For a capital share outstanding throughout each period.
Six Months Ended | Year Ended December 31, | |||||||||||||||||||||||
Asia Focus Fund | June 30, 2024† | 2023 | 2022 | 2021 | 2020 | 2019 | ||||||||||||||||||
Net asset value, beginning of period | $ | 14.83 | $ | 14.17 | $ | 20.36 | $ | 23.76 | $ | 20.03 | $ | 16.58 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) | 0.04 | 0.07 | 0.02 | (0.08 | ) | 0.01 | 0.21 | |||||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 0.01 | 0.76 | (5.73 | ) | (1.46 | ) | 5.09 | 4.56 | ||||||||||||||||
Total from investment operations | 0.05 | 0.83 | (5.71 | ) | (1.54 | ) | 5.10 | 4.77 | ||||||||||||||||
Less distributions: | ||||||||||||||||||||||||
From net investment income | - | (0.02 | ) | - | - | (0.10 | ) | (0.12 | ) | |||||||||||||||
From net realized gain | - | (0.15 | ) | (0.48 | ) | (1.86 | ) | (1.27 | ) | (1.20 | ) | |||||||||||||
Total distributions | - | (0.17 | ) | (0.48 | ) | (1.86 | ) | (1.37 | ) | (1.32 | ) | |||||||||||||
Redemption fee proceeds | - | - | - | - | - | (1) | - | (1) | ||||||||||||||||
Net asset value, end of period | $ | 14.88 | $ | 14.83 | $ | 14.17 | $ | 20.36 | $ | 23.76 | $ | 20.03 | ||||||||||||
Total return | 0.34 | %(2) | 5.95% | (28.03 | )% | (6.32 | )% | 25.93 | % | 29.20 | % | |||||||||||||
Ratios/supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (millions) | $ | 10.4 | $ | 10.9 | $ | 11.0 | $ | 16.4 | $ | 19.1 | $ | 17.4 | ||||||||||||
Ratio of expenses to average net assets: | ||||||||||||||||||||||||
Before fees waived | 2.52 | %(3) | 2.43 | % | 2.36 | % | 1.89 | % | 2.21 | % | 2.27 | % | ||||||||||||
After fees waived (4) | 1.98 | %(3) | 1.98 | % | 1.98 | % | 1.98 | % | 1.98 | % | 1.98 | % | ||||||||||||
Ratio of net investment income (loss) to average net assets: | ||||||||||||||||||||||||
Before fees waived | -0.09 | %(3) | -0.03 | % | (0.26 | %) | (0.26 | %) | (0.24 | %) | 0.85 | % | ||||||||||||
After fees waived | 0.45 | %(3) | 0.42 | % | 0.12 | % | (0.35 | %) | (0.01 | %) | 1.14 | % | ||||||||||||
Portfolio turnover rate | 2.10 | %(2) | 4.04% | 6.00 | % | 29.05 | % | 30.24 | % | 19.56 | % |
† | Unaudited |
(1) | Amount represents less than $0.01 per share. |
(2) | Not annualized |
(3) | Annualized |
(4) | The Advisor has contractually agreed to limit the operating expenses of the Fund to 1.98%, excluding interest expense, expenses related to dividends on short positions, brokerage commissions, taxes and other extraordinary expenses. See Note 3. |
The accompanying notes are an integral part of these financial statements.
Page 24 |
FINANCIAL HIGHLIGHTS
For a capital share outstanding throughout each period.
Six Months Ended | Year Ended December 31, | |||||||||||||||||||||||
China & Hong Kong Fund | June 30, 2024† | 2023 | 2022 | 2021 | 2020 | 2019 | ||||||||||||||||||
Net asset value, beginning of period | $ | 12.87 | $ | 15.16 | $ | 20.05 | $ | 25.92 | $ | 23.49 | $ | 18.92 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.13 | 0.07 | 0.08 | 0.05 | 0.16 | 0.37 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | (1.18 | ) | (2.26 | ) | (4.84 | ) | (1.83 | ) | 3.20 | 5.23 | ||||||||||||||
Total from investment operations | (1.05 | ) | (2.19 | ) | (4.76 | ) | (1.78 | ) | 3.36 | 5.60 | ||||||||||||||
Less distributions: | ||||||||||||||||||||||||
From net investment income | - | (0.10 | ) | (0.05 | ) | (0.07 | ) | (0.20 | ) | (0.43 | ) | |||||||||||||
From net realized gain | - | - | (0.08 | ) | (4.02 | ) | (0.73 | ) | (0.60 | ) | ||||||||||||||
Total distributions | - | (0.10 | ) | (0.13 | ) | (4.09 | ) | (0.93 | ) | (1.03 | ) | |||||||||||||
Redemption fee proceeds | - | - | - | - | (1) | - | (1) | - | (1) | |||||||||||||||
Net asset value, end of period | $ | 11.82 | $ | 12.87 | $ | 15.16 | $ | 20.05 | $ | 25.92 | $ | 23.49 | ||||||||||||
Total return | (8.16 | %)(2) | (14.46 | %) | (23.71 | %) | (6.70 | %) | 14.54 | % | 30.00 | % | ||||||||||||
Ratios/supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (millions) | $ | 24.6 | $ | 28.6 | $ | 38.1 | $ | 56.7 | $ | 66.5 | $ | 67.6 | ||||||||||||
Ratio of expenses to average net assets: (4) | 1.95 | %(3)(5) | 1.82 | %(5) | 1.71 | %(5) | 1.50 | % | 1.60 | %(5) | 1.69 | % | ||||||||||||
Ratio of net investment income to average net assets: | 1.94 | %(3) | 0.36 | % | 0.45 | % | 0.20 | % | 0.59 | % | 1.61 | % | ||||||||||||
Portfolio turnover rate | 5.31 | % | 5.18 | % | 17.46 | % | 29.82 | % | 45.40 | % | 24.18 | % |
† | Unaudited |
(1) | Amount represents less than $0.01 per share. |
(2) | Not annualized |
(3) | Annualized |
(4) | The Advisor has contractually agreed to limit the operating expenses of the Fund to 1.98%, excluding interest expense, expenses related to dividends on short positions, brokerage commissions, taxes and other extraordinary expenses. See Note 3. |
(5) | If interest expense had been excluded, expenses would have been lowered by 0.02% for the period ended June 30, 2024 and 0.01% , 0.01% and 0.02% for the years ended December 31, 2023, 2022 and 2020, respectively. |
The accompanying notes are an integral part of these financial statements.
Page 25 |
FINANCIAL HIGHLIGHTS
For a capital share outstanding throughout each period.
Six Months Ended | Year Ended December 31, | |||||||||||||||||||||||
Global Energy Fund | June 30, 2024† | 2023 | 2022 | 2021 | 2020 | 2019 | ||||||||||||||||||
Net asset value, beginning of period | $ | 23.36 | $ | 23.78 | $ | 17.73 | $ | 12.47 | $ | 19.62 | $ | 18.13 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.47 | 0.95 | 0.74 | 0.49 | 0.45 | 0.45 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 1.91 | (0.36 | ) | 5.35 | 5.23 | (7.15 | ) | 1.42 | ||||||||||||||||
Total from investment operations | 2.38 | 0.59 | 6.09 | 5.72 | (6.70 | ) | 1.87 | |||||||||||||||||
Less distributions: | ||||||||||||||||||||||||
From net investment income | - | (1.01 | ) | (0.04 | ) | (0.46 | ) | (0.45 | ) | (0.38 | ) | |||||||||||||
From net realized gain | - | - | - | - | - | - | ||||||||||||||||||
Total distributions | - | (1.01 | ) | (0.04 | ) | (0.46 | ) | (0.45 | ) | (0.38 | ) | |||||||||||||
Net asset value, end of period | $ | 25.74 | $ | 23.36 | $ | 23.78 | $ | 17.73 | $ | 12.47 | $ | 19.62 | ||||||||||||
Total return | 10.19 | %(1) | 2.60 | % | 34.33 | % | 45.98 | % | (34.22 | %) | 10.40 | % | ||||||||||||
Ratios/supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (millions) | $ | 11.7 | $ | 12.1 | $ | 16.2 | $ | 12.3 | $ | 8.7 | $ | 16.8 | ||||||||||||
Ratio of expenses to average net assets | ||||||||||||||||||||||||
Before fees waived/recaptured | 2.13 | %(2) | 2.13 | % | 1.91 | % | 1.99 | % | 2.56 | % | 1.91 | % | ||||||||||||
After fees waived/recaptured (3) | 1.46 | %(2)(4) | 1.47 | %(4) | 1.46 | %(4) | 1.46 | %(4) | 1.46 | %(4) | 1.45 | % | ||||||||||||
Ratio of net investment income to average net assets | ||||||||||||||||||||||||
Before fees waived/recaptured | 2.19 | %(2) | 2.01 | % | 2.55 | % | 2.40 | % | 2.39 | % | 1.65 | % | ||||||||||||
After fees waived/recaptured | 2.86 | %(2) | 2.67 | % | 3.00 | % | 2.93 | % | 3.49 | % | 2.11 | % | ||||||||||||
Portfolio turnover rate | 8.09 | %(1) | 10.45 | % | 70.54 | % | 49.58 | % | 15.49 | % | 9.81 | % |
† | Unaudited |
(1) | Not annualized |
(2) | Annualized |
(3) | The Advisor has contractually agreed to limit the operating expenses of the Fund to 1.45%, excluding interest expense, expenses related to dividends on short positions, brokerage commissions, taxes and other extraordinary expenses. See Note 3. |
(4) | If interest expense had been excluded, expenses would have been lowered by 0.01% for the period ended June 30, 2024 and 0.02%, 0.01%, 0.01% and 0.01% for the years ended December 31, 2023, 2022, 2021 and 2020, respectively. |
The accompanying notes are an integral part of these financial statements.
Page 26 |
FINANCIAL HIGHLIGHTS
For a capital share outstanding throughout each period.
Six Months Ended | Year Ended December 31, | |||||||||||||||||||||||
Global Innovators Fund - Investor Class | June 30, 2024† | 2023 | 2022 | 2021 | 2020 | 2019 | ||||||||||||||||||
Net asset value, beginning of period | $ | 52.25 | $ | 39.01 | $ | 62.04 | $ | 60.53 | $ | 45.66 | $ | 34.89 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) | (0.01 | ) | (0.14 | ) | (0.07 | ) | (0.20 | ) | (0.06 | ) | 0.12 | |||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | $ | 9.61 | $ | 15.39 | (18.08 | ) | 12.77 | 16.53 | 12.73 | |||||||||||||||
Total from investment operations | 9.60 | 15.25 | (18.15 | ) | 12.57 | 16.47 | 12.85 | |||||||||||||||||
Less distributions: | ||||||||||||||||||||||||
From net investment income | - | - | - | - | - | (0.11 | ) | |||||||||||||||||
From net realized gain | - | (2.01 | ) | (4.88 | ) | (11.06 | ) | (1.60 | ) | (1.97 | ) | |||||||||||||
Total distributions | - | (2.01 | ) | (4.88 | ) | (11.06 | ) | (1.60 | ) | (2.08 | ) | |||||||||||||
Net asset value, end of period | $ | 61.85 | $ | 52.25 | $ | 39.01 | $ | 62.04 | $ | 60.53 | $ | 45.66 | ||||||||||||
Total return | 18.35 | %(1) | 39.34 | % | (29.67 | %) | 21.52 | % | 36.17 | % | 37.00 | % | ||||||||||||
Ratios/supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (millions) | $ | 162.7 | $ | 137.5 | $ | 100.7 | $ | 161.4 | $ | 147.8 | $ | 134.8 | ||||||||||||
Ratio of expenses to average net assets: | ||||||||||||||||||||||||
Before fees waived/recaptured | 1.24 | %(2) | 1.28 | % | 1.27 | % | 1.17 | % | 1.24 | % | 1.35 | % | ||||||||||||
After fees waived/recaptured (3) | 1.24 | %(2) | 1.24 | % | 1.24 | % | 1.24 | % | 1.24 | % | 1.24 | % | ||||||||||||
Ratio of net investment income (loss) to average net assets: | ||||||||||||||||||||||||
Before fees waived/recaptured | (0.02 | %)(2) | (0.34 | %) | (0.17 | %) | (0.25 | %) | (0.10 | %) | 0.17 | % | ||||||||||||
After fees waived/recaptured | (0.02 | %)(2) | (0.30 | %) | (0.14 | %) | (0.32 | %) | (0.10 | %) | 0.28 | % | ||||||||||||
Portfolio turnover rate | 9.02 | %(1) | 8.77 | % | 14.66 | % | 19.01 | % | 14.44 | % | 15.56 | % |
† | Unaudited |
(1) | Not annualized. |
(2) | Annualized. |
(3) | The Advisor has contractually agreed to limit the operating expenses to 1.24% excluding interest expense, expenses related to dividends on short positions, brokerage commissions, taxes and other extraordinary expenses. See Note 3. |
The accompanying notes are an integral part of these financial statements.
Page 27 |
FINANCIAL HIGHLIGHTS
For a capital share outstanding throughout each period.
Six Months Ended | Year Ended December 31, | |||||||||||||||||||||||
Global Innovators Fund - Institutional Class | June 30, 2024† | 2023 | 2022 | 2021 | 2020 | 2019 | ||||||||||||||||||
Net asset value, beginning of period | $ | 53.16 | $ | 39.56 | $ | 62.68 | $ | 60.89 | $ | 45.84 | $ | 34.99 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) | 0.07 | (0.02 | ) | 0.06 | (0.04 | ) | 0.07 | 0.22 | ||||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | $ | 9.77 | $ | 15.63 | (18.30 | ) | 12.89 | 16.60 | 12.79 | |||||||||||||||
Total from investment operations | 9.84 | 15.61 | (18.24 | ) | 12.85 | 16.67 | 13.01 | |||||||||||||||||
Less distributions: | ||||||||||||||||||||||||
From net investment income | - | - | - | - | (0.02 | ) | (0.19 | ) | ||||||||||||||||
From net realized gain | - | (2.01 | ) | (4.88 | ) | (11.06 | ) | (1.60 | ) | (1.97 | ) | |||||||||||||
Total distributions | - | (2.01 | ) | (4.88 | ) | (11.06 | ) | (1.62 | ) | (2.16 | ) | |||||||||||||
Net asset value, end of period | $ | 63.00 | $ | 53.16 | $ | 39.56 | $ | 62.68 | $ | 60.89 | $ | 45.84 | ||||||||||||
Total return | 18.51 | %(1) | 39.70 | % | (29.51 | %) | 21.86 | % | 36.46 | % | 37.35 | % | ||||||||||||
Ratios/supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (millions) | $ | 54.4 | $ | 46.3 | $ | 33.6 | $ | 64.6 | $ | 55.2 | $ | 45.9 | ||||||||||||
Ratio of expenses to average net assets: | ||||||||||||||||||||||||
Before fees waived | 1.10 | %(2) | 1.13 | % | 1.10 | % | 0.99 | % | 1.07 | % | 1.21 | % | ||||||||||||
After fees waived (3) | 0.99 | %(2) | 0.99 | % | 0.99 | % | 0.99 | % | 0.99 | % | 0.99 | % | ||||||||||||
Ratio of net investment income (loss) to average net assets: | ||||||||||||||||||||||||
Before fees waived | 0.12 | %(2) | -0.19 | % | 0.01 | % | (0.08 | %) | 0.06 | % | 0.31 | % | ||||||||||||
After fees waived | 0.23 | %(2) | -0.05 | % | 0.12 | % | (0.08 | %) | 0.14 | % | 0.53 | % | ||||||||||||
Portfolio turnover rate | 9.02 | %(1) | 8.77 | % | 14.66 | % | 19.01 | % | 14.44 | % | 15.56 | % |
† | Unaudited |
(1) | Not annualized. |
(2) | Annualized. |
(3) | The Advisor has contractually agreed to limit the operating expenses of the Fund's Institutional Class to 0.99%, excluding interest expense, expenses related to dividends on short positions, brokerage commissions, taxes and other extraordinary expenses. See Note 3. |
The accompanying notes are an integral part of these financial statements.
Page 28 |
FINANCIAL HIGHLIGHTS
For a capital share outstanding throughout each period.
Six Months Ended | Year Ended December 31, | |||||||||||||||||||||||
Renminbi Yuan & Bond Fund | June 30, 2024† | 2023 | 2022 | 2021 | 2020 | 2019 | ||||||||||||||||||
Net asset value, beginning of period | $ | 11.20 | $ | 11.27 | $ | 12.62 | $ | 12.50 | $ | 11.53 | $ | 11.25 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.08 | 0.24 | 0.23 | 0.21 | 0.24 | 0.34 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | (0.15 | ) | (0.25 | ) | (1.39 | ) | 0.16 | 0.78 | 0.05 | |||||||||||||||
Total from investment operations | (0.07 | ) | (0.01 | ) | (1.16 | ) | 0.37 | 1.02 | 0.39 | |||||||||||||||
Less distributions: | ||||||||||||||||||||||||
From net investment income | - | - | (1) | (0.19 | ) | (0.25 | ) | (0.05 | ) | - | ||||||||||||||
Return of capital | - | (0.06 | ) | - | - | - | (0.13 | ) | ||||||||||||||||
Total distributions | - | (0.06 | ) | (0.19 | ) | (0.25 | ) | (0.05 | ) | (0.13 | ) | |||||||||||||
Redemption fee proceeds | - | - | - | - | - | (1) | 0.02 | (1) | ||||||||||||||||
Net asset value, end of period | $ | 11.13 | $ | 11.20 | $ | 11.27 | $ | 12.62 | $ | 12.50 | $ | 11.53 | ||||||||||||
Total return | (0.6 | 2%)(2) | (0.09 | %) | (9.20 | %) | 3.00 | % | 8.89 | % | 3.68 | % | ||||||||||||
Ratios/supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (millions) | $ | 3.3 | $ | 3.8 | $ | 4.7 | $ | 5.4 | $ | 3.9 | $ | 1.5 | ||||||||||||
Ratio of expenses to average net assets: | ||||||||||||||||||||||||
Before fees waived | 3.21 | %(3) | 3.01 | % | 2.70 | % | 2.29 | % | 5.26 | % | 6.79 | % | ||||||||||||
After fees waived (4) | 0.93 | %(3)(5) | 0.96 | %(5) | 0.90 | % | 0.90 | % | 0.91 | %(5) | 0.90 | % | ||||||||||||
Ratio of net investment income (loss) to average net assets: | ||||||||||||||||||||||||
Before fees waived/recaptured | (0.90 | %)(3) | (0.08 | %) | 0.14 | % | 0.43 | % | (1.90 | %) | (1.95 | %) | ||||||||||||
After fees waived/recaptured | 1.38 | %(3) | 1.97 | % | 1.94 | % | 1.82 | % | 2.45 | % | 3.94 | % | ||||||||||||
Portfolio turnover rate | 21.16 | %(2) | 0.00 | % | 3.78 | % | 31.79 | % | 36.26 | % | 0.00 | % |
† | Unaudited |
(1) | Amount represents less than $0.01 per share. |
(2) | Not annualized |
(3) | Annualized |
(4) | The Advisor has contractually agreed to limit the operating expenses of the Fund to 0.90%, excluding interest expense, expenses related to dividends on short positions, brokerage commissions, taxes and other extraordinary expenses. See Note 3. |
(5) | If interest expense had been excluded, expenses would have been lowered by 0.03% for the period ended June 30, 2024 and 0.06% and 0.01% for the years ended December 31, 2023 and 2020, respectively. |
The accompanying notes are an integral part of these financial statements.
Page 29 |
NOTES TO FINANCIAL STATEMENTS
June 30, 2024
Note 1 - Organization
Guinness Atkinson™ Funds (the “Trust”), was organized on April 28, 1997 as a Delaware business trust and registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. Currently, the Trust offers eleven separate, series portfolios, each of which has a unique investment objective and strategies. This report covers the six open-end mutual funds: Guinness Atkinson Alternative Energy Fund (the “Alternative Energy Fund”), Guinness Atkinson Asia Focus Fund (the “Asia Focus Fund”), Guinness Atkinson China & Hong Kong Fund (the “China & Hong Kong Fund”), Guinness Atkinson Global Energy Fund (the “Global Energy Fund”), Guinness Atkinson Global Innovators Fund (the “Global Innovators Fund”) and Guinness Atkinson Renminbi Yuan & Bond Fund (the “Renminbi Yuan & Bond Fund”), all of which (each a “Fund” and collectively, the “Funds”) are covered by this report. Except for the Renminbi Yuan & Bond Fund, each Fund is a diversified Fund. The China & Hong Kong Fund began operations on June 30, 1994, the Asia Focus Fund began operations on April 29, 1996, the Global Innovators Fund began operations on December 15, 1998, the Global Energy Fund began operations on June 30, 2004, the Alternative Energy Fund began operations on March 31, 2006, and the Renminbi Yuan & Bond Fund began operations on June 30, 2011. Each of the Funds is authorized to issue a single class of shares except for the Global Innovators Fund. The Global Innovators Fund is authorized to issue two classes of shares: Investor Class shares and Institutional Class shares. Institutional Class shares of the Global Innovators Fund commenced operations on December 31, 2015.
The shares of each class represent an interest in the same portfolio of investments of the Global Innovators Fund and have equal rights as to voting, redemptions, dividends and liquidation, subject to the approval of the Trustees. Income and expenses (other than expenses attributable to a specific class) and realized and unrealized gains and losses on investments are allocated to each class of shares in proportion to their relative shares outstanding. Shareholders of a class that bears distribution and service expenses under the terms of a distribution plan have exclusive voting rights to that distribution plan.
The Alternative Energy Fund, Asia Focus Fund, Global Energy Fund, and Global Innovator Fund’s investment objective is long-term capital appreciation. The China & Hong Kong Fund’s investment objective is long-term capital appreciation primarily through investments in securities of China and Hong Kong. The Renminbi Yuan & Bond Fund’s investment objective is to seek total return. Total return means the combination of capital appreciation and investment income, which includes changes in the value of the renminbi, the currency of China of which the yuan is the unit.
Note 2 - Significant accounting policies
Each Fund is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standard Codification Topic 946 “Financial Services—Investment Companies”.
The following is a summary of significant accounting policies consistently followed by the Funds. These policies are in conformity with accounting principles generally accepted in the United States of America. (“GAAP”).
A. | Security Valuation. Securities of the Funds that are traded on a principal exchange (U.S. or foreign) or NASDAQ are valued at the official closing price on each day that the exchanges are open for trading. Securities traded on an exchange for which there have been no sales, and other over-the-counter securities are valued at the mean between the bid and asked prices. Debt securities are valued based on available market quotations received from an independent pricing service approved by the Trust’s Board of Trustees which may utilize both transaction data and market information such as yield, prices of securities of comparable quality, coupon rate, maturity, type of issue, trading characteristics and other market data. Securities for which quotations are not readily available are valued at their respective fair values as determined in good faith by the Funds’ Valuation Committee in accordance with procedures established by the Board of Trustees. In determining fair value, the Funds’ Valuation Committee take into account all relevant factors and available information. Consequently, the price of the security used to calculate its Net Asset Value may differ from quoted or published prices for the same security. Fair value pricing involves subjective judgments and there is no single standard for determining a security’s fair value. As a result, different mutual funds could reasonably arrive at different fair value for the same security. It is possible that the fair value determined for a security is materially different from the value that could be realized upon the sale of that security or from the values that other mutual funds may determine. Short-term investments are stated at cost, combined with accrued interest, which approximates market value. Realized gains and losses from securities transactions are calculated using the identified cost method. |
Page 30 |
NOTES TO FINANCIAL STATEMENTS
June 30, 2024 - Continued
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.
Foreign exchange gain or loss resulting from holding of a foreign currency, expiration of a currency exchange contract, difference in exchange rates between the trade date and settlement date of an investment purchased or sold, and the difference between dividends actually received compared to the amount shown in a Fund’s accounting records on the date of receipt are shown as net realized gains or losses on foreign currency transactions in the respective Fund’s statement of operations.
B. | Forward Foreign Currency Exchange Contracts. The Funds may utilize forward foreign currency exchange contracts ("forward contracts") to hedge against foreign exchange fluctuations on foreign-denominated investments under which they are obligated to exchange currencies at specific future dates and at specified rates. All commitments are "marked-to-market" daily and any resulting unrealized gains or losses are included as unrealized appreciation (depreciation) on foreign currency denominated assets and liabilities. The Funds record realized gains or losses at the time the forward contract is settled. Risks may arise upon entering these contracts from the potential inability of a counter party to meet the terms of their contracts and from unanticipated movements in the value of a foreign currency relative to the U.S. dollar or other currencies. Counterparties to these contracts are major U.S. financial institutions. Please refer to Note 8 for further information on forward foreign currency contracts held in each Fund. |
C. | Restricted Securities. A restricted security cannot be resold to the general public without prior registration under the Securities Act of 1933. If the security is subsequently registered and resold, the issuers would typically bear the expense of all registrations at no cost to the Fund. Restricted securities are valued according to the guidelines and procedures adopted by the Funds’ Board of Trustees. |
D. | Illiquid Securities. Pursuant to Rule 22e-4 under the 1940 Act, the Funds have adopted a Liquidity Risk Management Program (“LRMP”) that requires, among other things, that each Fund limits its illiquid investments that are assets to no more than 15% of net assets. An illiquid investment is any security which may not reasonably be expected to be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment. If the Advisor, at any time determines that the value of illiquid securities held by a Fund exceeds 15% of its net asset value, the Advisor will take steps as it considers appropriate to reduce them as soon as reasonably practicable in accordance with the Funds’ written LRMP. |
E. | Security Transactions, Dividend Income and Distributions. Security transactions are accounted for on the trade date. Realized gains and losses from securities transactions are calculated using the identified cost method. Dividend income is recorded net of applicable withholding taxes on the ex-dividend date and interest income is recorded on an accrual basis. Withholding taxes on foreign dividends, if applicable, are paid (a portion of which may be reclaimable) or provided for in accordance with the applicable country’s tax rules and rates and are disclosed in the Statement of Operations. Withholding tax reclaims are filed in certain countries to recover a portion of the amounts previously withheld. The Funds record a reclaim receivable based on a number of factors, including a jurisdiction’s legal obligation to pay reclaims as well as payment history and market convention. The Funds may be subject to foreign taxation related to capital gains on the sale of securities in the foreign jurisdictions in which they invest. When a capital gain tax is determined to apply, the Funds record an estimated deferred tax liability in an amount that may be payable if securities were disposed of on the valuation date. |
Page 31 |
NOTES TO FINANCIAL STATEMENTS
June 30, 2024 - Continued
F. | Allocation of Expenses. Each Fund is charged for those expenses directly attributable to it. Expenses that are not directly attributable to a Fund are allocated among the Funds in proportion to their respective assets or another appropriate method. Expenses such as distribution and service fees, transfer agent fees and expenses with respect to the Global Innovators Fund, that are specific to individual share classes are accrued directly to the respective share class. |
G. | Cash overdraft. Per the terms of an agreement with Brown Brothers Harriman & Co. (“BBH”), the Funds’ Custodian, if a Fund has a cash overdraft on a given day, it will be assessed an overdraft charge of BBH Overdraft Base Rate plus 2.00%. Payables, if any, are reflected as Overdraft Due to Custodian Bank in the Statements of Assets and Liabilities. Expenses from cash overdrafts are included in Interest Expense in the Statements of Operations. |
H. | Concentration of Risk. The Alternative Energy Fund invests substantially in the alternative energy or energy technology sectors. The Asia Focus Fund invests substantially all of its assets in the Asian continent. The China & Hong Kong Fund invests substantially all of its assets in securities that are traded in China or Hong Kong or that are issued by companies that do a substantial part of their business in China. The Global Energy Fund invests substantially in energy companies; the changes in the prices and supplies of oil and other energy fuels may affect the Fund’s investments. The Renminbi Yuan & Bond Fund invests in securities issued by companies economically tied to China, which exposes the Fund to greater market risk and potential monetary losses than if the Fund’s assets were diversified among other regions. The consequences of political, social, or economic changes in the countries or business sectors in which the securities are offered or the issuers conduct their operations may affect the market prices of the Funds' investments and any income generated, as well as the Funds' ability to repatriate such amounts. |
I. | Other Risks. |
China Currency Risk. The Fund’s investments in Chinese issuers are subject to risks associated with China’s currency, which is subject to economic objectives of China’s government including devaluation. China has only comparatively recently moved from a pegged currency to a managed float. China’s currency, the Renminbi Yuan, is not completely freely tradable and may not at all times reflect economic fundamentals of China’s economy. The value of the Renminbi Yuan is subject to changes based on the economic objectives of the Chinese government, including devaluation in order to improve the competitiveness of Chinese goods in an effort to improve the Chinese balance of trade.
Other Currency Risk. Currencies of some countries in the Asia Pacific region are subject to greater volatility as compared to the US dollar. Currency volatility is relative and can be periodic. For some countries, their currency may not reflect entirely the fundamental components of a country’s economy. For other countries, such as Australia (Australia Dollar), currency volatility is relatively low over longer terms. Some currencies, such as South Korea (Won), Taiwan (New Taiwan Dollar), Singapore (Singapore Dollar) and India (Rupee), trade only in local markets and may be more volatile than other currencies. The Fund could pay more if it had to acquire a foreign currency when the amplitude of its volatility is high as measured against the US Dollar.
Capital Controls and Sanctions Risk. In 2022, a number of countries imposed capital controls and economic and other sanctions in response to Russia’s invasion of Ukraine. The range of sanctions and their impact continues to evolve but has included asset seizures, restrictions on the transfer or exchange of currency, restrictions on asset transfers, exclusions from international banking systems, export limitations and limitations on listing shares of companies that are economically tied to Russia and Belarus, including depositary receipts on shares of affected companies. Sanctions programs have been imposed by individual countries, but also on a coordinated basis. The duration of sanctions programs and capital controls in response to the invasion of Ukraine cannot be predicted with any certainty. Capital controls and/or sanctions could adversely impact a Fund’s ability to buy, sell or otherwise transfer securities or currency, negatively impact the value and/or liquidity of such instruments, adversely affect the trading market and price for Fund shares, and otherwise cause the Fund to decline in value.
Page 32 |
NOTES TO FINANCIAL STATEMENTS
June 30, 2024 - Continued
J. | Use of Estimates. The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates. |
K. | Indemnifications. Under the Trust's organizational documents, its current and former officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Funds. In addition, in the normal course of business, the Funds enter into contracts that contain a variety of representations and warranties that provide general indemnifications. The Funds' maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds that have not yet occurred or that would be covered by other parties. |
L. | Federal Income Taxes. The Funds intend to comply with the requirements of Subchapter M of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of their net investment income and any net realized gains to their shareholders. Therefore, no provision is made for federal income or excise taxes. Due to the timing of dividend distributions and the differences in accounting for income and realized gains and losses for financial statement and federal income tax purposes, the fiscal year in which amounts are distributed may differ from the year in which the income and realized gains and losses are recorded by the Funds. |
Accounting for Uncertainty in Income Taxes (the “Income Tax Statement”) requires an evaluation of tax positions taken (or expected to be taken) in the course of preparing a Funds’ tax returns to determine whether these positions meet a “more-likely-than-not” standard that, based on the technical merits, have a more than fifty percent likelihood of being sustained by a taxing authority upon examination. A tax position that meets the “more-likely-than-not” recognition threshold is measured to determine the amount of benefit to recognize in the financial statements. The Funds recognize interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Statements of Operations. The Income Tax Statement requires management of the Funds to analyze tax positions taken in the prior three open tax years, if any, and tax positions expected to be taken in the Fund’s current tax year, as defined by the IRS statute of limitations for all major jurisdictions, including federal tax authorities and certain state tax authorities. As of and during the open tax years ended December 2020 through 2023, and as of and during the six months ended June 30, 2024, the Funds did not have a liability for any unrecognized tax benefits. The Funds have no examination in progress and are not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
Page 33 |
NOTES TO FINANCIAL STATEMENTS
June 30, 2024 - Continued
Note 3 - Investment Advisory and Other Agreements
The Trust, on behalf of each Fund, entered into an Investment Advisory Agreement with Guinness Atkinson Asset Management, Inc. (the “Advisor”), under which the Advisor provides the Funds with investment management services. The Advisor furnishes all investment advice, office space, facilities, and most of the personnel needed by the Funds. As compensation for its services, the Advisor is entitled to a monthly fee at the following annual rates based upon the average daily net assets of the Funds:
Alternative Energy Fund | 0.80% |
Asia Focus Fund | 1.00% |
China & Hong Kong Fund | 1.00% |
Global Energy Fund | 0.75% |
Global Innovators Fund | 0.75% on the 1st $500 million, 0.60% thereafter |
Renminbi Yuan & Bond Fund | 0.55% |
The Funds are responsible for their own operating expenses. The Advisor has contractually agreed to limit each Fund’s total operating expenses (excluding interest, taxes, acquired fund fees and expenses (as defined in Form N1-A), fees and expenses related to services for reclamation or recollection of foreign taxes withheld, dividends on short positions and extraordinary expenses) by reducing all or a portion of its fees and reimbursing the Fund for expenses so that its ratio of expenses to average daily net assets will not exceed the following levels:
Annual Expense Limit | Expiration Date | |
Alternative Energy Fund | 1.10% | June 30, 2027 |
Asia Focus Fund | 1.98% | June 30, 2027 |
China & Hong Kong Fund | 1.98% | June 30, 2027 |
Global Energy Fund | 1.45% | June 30, 2027 |
Global Innovators Fund - Investor Class | 1.24% | June 30, 2027 |
Global Innovators Fund - Institutional Class | 0.99% | June 30, 2027 |
Renminbi Yuan & Bond Fund | 0.90% | June 30, 2027 |
The expense ratios shown in the financial highlights may exceed these levels due to expenses incurred, but not covered by the expense limitation agreement.
To the extent that the Advisor waives fees and/or absorbs expenses it may seek repayment of a portion or all of such amounts at any time within three fiscal years after the fiscal year in which such amounts were waived or absorbed and recaptured previously waived subject to the applicable cap. For the period ended June 30, 2024, the Advisor waived fees and absorbed expenses as follows:
Fees waived and Expenses Absorbed | ||||
Alternative Energy Fund | $ | 93,194 | ||
Asia Focus Fund | 27,640 | |||
Global Energy Fund | 39,726 | |||
Global Innovators Fund | 30,902 | |||
Renminbi Yuan & Bond Fund | 40,682 | |||
Total | $ | 232,144 |
Page 34 |
NOTES TO FINANCIAL STATEMENTS
June 30, 2024 - Continued
At June 30, 2024, the Advisor may recapture a portion of the following amounts that had been paid and/or waived on behalf of the Funds no later than the dates as stated below:
December 31, | ||||||||||||||||||||
Fund | 2024 | 2025 | 2026 | 2027 | Total | |||||||||||||||
Alternative Energy Fund | $ | - | $ | - | $ | 69,017 | $ | 93,194 | $ | 162,211 | ||||||||||
Asia Focus Fund | - | 47,853 | 50,668 | 27,640 | 126,161 | |||||||||||||||
Global Energy Fund | 62,548 | 74,959 | 87,577 | 39,726 | 264,810 | |||||||||||||||
Global Innovators Fund | 1,211 | 78,183 | 98,690 | 30,902 | 208,986 | |||||||||||||||
Renminbi Yuan & Bond Fund | 65,641 | 89,841 | 89,083 | 40,682 | 285,247 |
Foreside Fund Services, LLC acts as the Funds' principal underwriter in a continuous public offering of the Funds' shares.
Mutual Fund Administration, LLC (the “Administrator”) acts as the Funds’ administrator under an administration agreement. The fees paid to the Administrator for the period ended June 30, 2024, are reported on the Statements of Operations.
Foreside Fund Officer Services, LLC provides Chief Compliance Officer (“CCO”) services to the Funds. The fees paid for CCO services for the period ended June 30, 2024, are reported on the Statements of Operations.
The fees paid to non-interested Trustees for the period ended June 30, 2024, are reported on the Statements of Operations.
Certain officers of the Trust are also officers and/or Directors of the Advisor and the Administrator. None of these officers are compensated directly by the Funds.
Note 4 - Distribution Plan
The Trust has adopted a Distribution Plan under Rule 12b-1 of the 1940 Act. The Board of Trustees has not authorized the Funds to make payment under the Distribution Plan. Currently, no payment is being made by the Funds.
Note 5 - Shareholder Servicing Plan
Each Fund has adopted a Shareholder Servicing Plan to pay a fee at an annual rate of up to 0.25% of its daily average net assets of shares serviced by shareholder servicing agents who provide administrative and support services to their customers. The Global Innovators Fund – Institutional Class shares do not participate in the Shareholder Servicing Plan.
The fees paid under the Shareholder Servicing Plan for the period ended June 30, 2024, are reported on the Statements of Operations.
Page 35 |
NOTES TO FINANCIAL STATEMENTS
June 30, 2024 - Continued
Note 6 - Investment Transactions
The following table presents purchases and sales of securities during the period ended June 30, 2024, excluding short-term investments, to indicate the volume of transactions in each Fund.
Purchases | Sales | |||||||
Alternative Energy Fund | $ | 2,751,357 | $ | 5,862,936 | ||||
Asia Focus Fund | 215,786 | 613,572 | ||||||
China & Hong Kong Fund | 1,394,864 | 2,972,894 | ||||||
Global Energy Fund | 539,460 | 1,901,955 | ||||||
Global Innovators Fund | 17,721,059 | 19,870,304 | ||||||
Renminbi Yuan & Bond Fund | 551,667 | 1,521,350 |
The Funds did not purchase U.S. Government securities as a part of their long-term investment strategy during the period ended June 30, 2024.
Note 7 - Fair Value Measurements and Disclosures
Fair Value Measurements and Disclosures defines fair value, establishes a framework for measuring fair value in accordance with GAAP, and expands disclosure about fair value measurements. It also provides guidance on determining when there has been a significant decrease in the volume and level of activity for an asset or a liability, when a transaction is not orderly, and how that information must be incorporated into a fair value measurement.
Under Fair Value Measurements and Disclosures, various inputs are used in determining the value of each Fund’s investments. These inputs are summarized into three broad Levels as described below:
· | Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities that a Fund has the ability to access. |
· | Level 2 – Observable inputs other than quoted prices included in level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data. |
· | Level 3 – Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing the Fund’s own assumptions about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available. |
The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3.
The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety, is determined based on the lowest level input that is significant to the fair value measurement in its entirety.
Page 36 |
NOTES TO FINANCIAL STATEMENTS
June 30, 2024 - Continued
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, as of June 30, 2024, in valuing the Funds' assets carried at fair value:
Alternative Energy Fund | ||||||||||||||||
Assets Table | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Investments, at value | ||||||||||||||||
Common Stocks: | ||||||||||||||||
Basic Materials | $ | 661,272 | $ | 665,734 | $ | - | $ | 1,327,005 | ||||||||
Consumer, Cyclical | 1,968,091 | 676,981 | - | 2,645,071 | ||||||||||||
Energy | 1,804,914 | 1,210,453 | - | 3,015,367 | ||||||||||||
Industrial | 5,537,687 | 3,436,549 | - | 8,974,236 | ||||||||||||
Technology | 1,646,536 | 817,075 | - | 2,463,612 | ||||||||||||
Utilities | 2,292,610 | 2,729,390 | - | 5,022,000 | ||||||||||||
Total Investments, at value | 13,911,111 | 9,536,181 | - | 23,447,292 | ||||||||||||
Total Assets | $ | 13,911,111 | $ | 9,536,181 | $ | - | $ | 23,447,292 |
Asia Focus Fund | ||||||||||||||||
Assets Table | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Investments, at value | ||||||||||||||||
Common Stocks: | ||||||||||||||||
Communications | $ | 1,122,435 | $ | 601,955 | $ | - | $ | 1,724,390 | ||||||||
Consumer, Cyclical | - | 1,144,517 | - | 1,144,517 | ||||||||||||
Consumer, Non-cyclical | - | 1,083,378 | - | 1,083,378 | ||||||||||||
Financial | - | 981,105 | - | 981,105 | ||||||||||||
Industrial | - | 1,881,769 | - | 1,881,769 | ||||||||||||
Technology | 1,976,592 | 1,592,717 | - | 3,569,309 | ||||||||||||
Total Investments, at value | 3,099,027 | 7,285,440 | - | 10,384,467 | ||||||||||||
Total Assets | $ | 3,099,027 | $ | 7,285,440 | $ | - | $ | 10,384,467 |
China & Hong Kong Fund | ||||||||||||||||
Assets Table | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Investments, at value | ||||||||||||||||
Common Stocks: | ||||||||||||||||
Communications | $ | 2,151,937 | $ | 1,440,833 | $ | - | 3,592,770 | |||||||||
Consumer, Cyclical | - | 6,822,190 | - | 6,822,190 | ||||||||||||
Consumer, Non-cyclical | - | 3,184,322 | - | 3,184,322 | ||||||||||||
Energy | - | 1,352,697 | - | 1,352,697 | ||||||||||||
Financial | - | 4,226,687 | - | 4,226,687 | ||||||||||||
Industrial | - | 3,867,708 | - | 3,867,708 | ||||||||||||
Technology | 887,460 | 613,667 | - | 1,501,128 | ||||||||||||
Total Investments, at value | 3,039,397 | 21,508,104 | - | 24,547,501 | ||||||||||||
Total Assets | $ | 3,039,397 | $ | 21,508,104 | $ | - | $ | 24,547,501 |
Page 37 |
NOTES TO FINANCIAL STATEMENTS
June 30, 2024 - Continued
Global Energy Fund | ||||||||||||||||
Assets Table | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Investments, at value | ||||||||||||||||
Common Stocks: | ||||||||||||||||
Energy | $ | 7,159,020 | $ | 4,435,477 | $ | - | $ | 11,594,497 | ||||||||
Financial | 8,581 | - | - | 8,581 | ||||||||||||
Total Investments, at value | 7,167,601 | 4,435,477 | - | 11,603,078 | ||||||||||||
Total Assets | $ | 7,167,601 | $ | 4,435,477 | $ | - | $ | 11,603,078 |
Global Innovators Fund | ||||||||||||||||
Assets Table | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Investments, at value | ||||||||||||||||
Common Stocks: | ||||||||||||||||
Communications | $ | 21,963,575 | $ | - | $ | - | $ | 21,963,575 | ||||||||
Consumer, Cyclical | 3,571,935 | 5,847,137 | - | 9,419,072 | ||||||||||||
Consumer, Non-cyclical | 21,115,812 | 14,164,047 | - | 35,279,859 | ||||||||||||
Financial | 19,894,121 | 6,873,030 | - | 26,767,151 | ||||||||||||
Industrial | 9,589,176 | 17,077,125 | - | 26,666,301 | ||||||||||||
Technology | 86,038,403 | 4,888,271 | - | 90,926,674 | ||||||||||||
Total Investments, at value | 162,173,023 | 48,849,609 | - | 211,022,632 | ||||||||||||
Total Assets | $ | 162,173,023 | $ | 48,849,609 | $ | - | $ | 211,022,632 |
Renminbi Yuan & Bond Fund | ||||||||||||||||
Assets Table | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Investments, at value | ||||||||||||||||
Corporate Bonds: | ||||||||||||||||
Financial | - | 1,652,571 | - | 1,652,571 | ||||||||||||
Government | - | 137,382 | - | 137,382 | ||||||||||||
Real Estate | - | 274,044 | - | 274,044 | ||||||||||||
Total Investments, at value | - | 2,063,997 | - | 2,063,997 | ||||||||||||
Total Assets | $ | - | $ | 2,063,997 | $ | - | $ | 2,063,997 |
Note 8 - Forward Foreign Currency Contracts
In order to hedge their portfolio and to protect them against possible fluctuations in foreign exchange rates pending the settlement of securities transactions, the Funds may enter into forward foreign currency contracts that obligate them to exchange currencies at specified future dates. At the maturity of a forward contract, a Fund may either make delivery of the foreign currency from currency held, if any, or from the proceeds of the portfolio securities sold. It may also terminate its obligation to deliver the foreign currency at any time by purchasing an offsetting contract. The forward values of amounts due are netted against the forward value of the currency to be delivered, and the net amount is shown as a receivable or payable in the financial statements. The Funds do not have any outstanding forward contracts as of June 30, 2024.
Page 38 |
NOTES TO FINANCIAL STATEMENTS
June 30, 2024 - Continued
Note 9 - Tax Matters
As of June 30, 2024, the tax bases of investments were as follows:
Alternative Energy Fund | Asia Focus Fund | China & Hong Kong Fund | ||||||||||
Cost of investments for tax purposes | $ | 28,114,906 | $ | 8,560,979 | $ | 33,246,951 | ||||||
Gross tax unrealized appreciation | 3,032,323 | 4,489,872 | 4,225,861 | |||||||||
Gross tax unrealized depreciation | (7,699,937 | ) | (2,666,384 | ) | (12,925,311 | ) | ||||||
Net tax unrealized appreciation (depreciation) on investments* | (4,667,614 | ) | 1,823,488 | (8,699,450 | ) |
Global Energy Fund | Global Innovators Fund | Renminbi Yuan & Bond Fund | ||||||||||
Cost of investments for tax purposes | $ | 12,448,896 | $ | 101,328,563 | $ | 2,410,231 | ||||||
Gross tax unrealized appreciation | 1,278,791 | 110,625,233 | - | |||||||||
Gross tax unrealized depreciation | (2,124,609 | ) | (931,164 | ) | (346,234 | ) | ||||||
Net tax unrealized appreciation (depreciation) on investments* | (845,818 | ) | 109,694,069 | (346,234 | ) |
* | The differences between book-basis and tax-basis unrealized appreciation/(depreciation) is attributable primarily to the tax deferral of losses on wash sales. |
As of December 31, 2023, the Funds have the following capital loss carryforwards available to offset future realized capital gains:
Capital losses expiring in: | Alternative Energy Fund | Asia Focus Fund | China & Hong Kong Fund | Global Energy Fund | Global Innovators Fund | Renminbi Yuan & Bond Fund | ||||||||||||||||||
No Expiration Long-term | $ | 29,252,711 | $ | - | $ | 854,166 | $ | 22,804,776 | $ | - | $ | 3,420,891 | ||||||||||||
No Expiration Short-term | - | - | - | 3,374,962 | - | 965,471 | ||||||||||||||||||
Total | $ | 29,252,711 | $ | - | $ | 854,166 | $ | 26,179,738 | $ | - | $ | 4,386,362 |
For the year ended December 31, 2023, the Alternative Energy Fund and the Global Energy Fund utilized capital loss carryforwards of $1,140,627 and $478,741, respectively.
Note 10 – Fund Liquidation
On June 26, 2024, the Board of Trustees of the Guinness Atkinson Funds (the “Trust”) approved a plan to liquidate and terminate the Guinness Atkinson Renminbi Yuan & Bond Fund (the “Fund”). The plan of liquidation provides that the Fund will cease its business, liquidate its assets and distribute its liquidation proceeds to all of the Fund’s shareholders of record. Final liquidation of the Fund is currently expected to occur on August 30, 2024.
Page 39 |
NOTES TO FINANCIAL STATEMENTS
June 30, 2024 - Continued
Note 11 - Events Subsequent to the Reporting Period End
The Funds have adopted financial reporting rules regarding a subsequent event 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 through the date of issuance of the Funds’ financial statements.
Page 40 |
Guinness AtkinsonTM Funds Information
Board of Trustees | Contact Guinness AtkinsonTM Funds |
J. Brooks Reece, Jr. Chairman | P.O. Box 701 |
James I. Fordwood | Milwaukee, WI 53201-0701 |
Timothy W.N. Guinness | Shareholder Services: 800-915-6566 |
Dr. Bret A. Herscher | Literature Request: 800-915-6565 |
Susan Penry-Williams | Website: www.gafunds.com |
Email: mail@gafunds.com |
Guinness Atkinson TM Funds | |||
Funds | Cusip | Ticker | Fund # |
Alternative Energy Fund | 402031 50 4 | GAAEX | 1298 |
Asia Focus Fund | 402031 10 8 | IASMX | 1096 |
China & Hong Kong Fund | 402031 20 7 | ICHKX | 1094 |
Global Energy Fund | 402031 40 5 | GAGEX | 1098 |
Global Innovators Fund Investor Class | 402031 30 6 | IWIRX | 1095 |
Global Innovators Fund Institutional Class | 402031 88 4 | GINNX | 5323 |
Renminbi Yuan & Bond Fund | 402031 70 2 | GARBX | 1099 |
Distributed by Foreside Fund Services, LLC, Three Canal Plaza, Suite 100, Portland, ME 04101
This report is intended for shareholders of the Guinness AtkinsonTM Funds and may not be used as literature unless preceded or accompanied by a current prospectus.
Item 8. Changes in and Disagreements with Accountants for Open-End Management Investment Companies.
Not Applicable.
Item 9. Proxy Disclosures for Open-End Management Investment Companies.
Not Applicable.
Item 10. Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies.
This information is included in Item 7, as part of the financial statements.
Item 11. Statement Regarding Basis for Approval of Investment Advisory Contract.
Board Consideration of and Continuance of the Trust’s Investment Advisory Agreement
At a Board Meeting held on May 3, 2024, the Board of Trustees (the “Trustees” or the “Board”) of Guinness Atkinson Funds (the “Trust”) considered the annual approval of the continuation of the investment advisory agreement (the “Agreement”) between the Trust, on behalf of the Alternative Energy Fund, the Asia Focus Fund, the China & Hong Kong Fund, the Global Energy Fund, the Global Innovators Fund, and the Renminbi Yuan & Bond Fund, and the Adviser.
At the meeting, the Trustees discussed with counsel to the Trust and independent legal counsel to the Independent Trustees, their fiduciary duties under the 1940 Act in reviewing the Agreement and their obligation to obtain and review information relevant and necessary to their consideration of the Agreement. The Trustees received a memorandum summarizing the duties of the Trustees under, and the fiduciary standards established by, the 1940 Act and applicable state law, legislative and regulatory guidance, and judicial precedent with respect to evaluating the reasonableness of fees and interpretation of the applicable fiduciary standards.
To assist the Board in its evaluation of the Agreement, the Independent Trustees received a separate report from the Adviser in advance of the meeting responding to a request for information provided on behalf of the Independent Trustees that, among other things, outlined the services provided by the Adviser to the Funds (including the relevant personnel responsible for these services and their experience); the fee rate or management fee rate payable by the Funds as compared to fees charged to a relevant peer group of each Fund and as compared to fees charged to other clients of the Adviser; the expenses of each Fund as compared to expense ratios of the funds in the respective Fund’s peer group; the nature of the expenses incurred in providing services to each Fund and the potential for economies of scale, if any; financial data on the Adviser; any fall-out benefits accruing to the Adviser; and information on the Adviser’s compliance programs. The Independent Trustees also met separately with their Independent Legal Counsel to discuss the information provided by the Adviser. In their deliberations, the Trustees considered the factors summarized below, and in approving the Agreement with respect to each Fund, the Trustees did not identify any single factor, or information provided with respect to any single factor, as controlling. The Trustees evaluated all information available to them on a Fund-by-Fund basis, and their determinations were made separately with respect to each Fund.
Nature, Extent and of Quality of Services
The Board discussed the fees payable by each Fund under the Agreement and the services provided by the Adviser to each Fund, and the Trustees considered that they receive from the Adviser and review on a regular basis over the course of the year information regarding the Funds’ performance, including information about the Funds’ performance in comparison to peers and benchmarks, and analyses by the Adviser of the Funds’ performance. The Trustees also considered information about the nature, extent and quality of the services provided by the Adviser, including the background and experience of the Adviser’s senior management and portfolio managers, and their special knowledge about the areas in which the Funds invest. The Trustees also considered information gained from their experience as Trustees of the Funds, in addition to the overall reputation and capabilities of the Adviser and its investment professionals, the Adviser’s commitment to providing high quality services to the Funds, the Trustees’ overall confidence in the Adviser’s integrity and responsiveness to Trustee concerns, the Adviser’s integrity as reflected in its adherence to compliance practices, and the Adviser’s willingness and initiative in implementing changes designed to reduce Fund expenses or improve services to the Funds, including the addition of research analysts and other operational personnel to support the Funds’ portfolio management and operations. The Trustees considered the impact of current market conditions on each Fund and the Fund complex. The Trustees also considered the general market performance in the prior year across market sectors and specifically in respect of each Fund’s specific sector or region focus, including the particular challenges or strengths of the markets in responding to global market events during the period.
Fund Performances, Advisory Fees and Expenses
For each Fund and its peer group of Funds, the Trustees reviewed the performance and expense information compiled from Morningstar Inc. data regarding performance for periods ended March 31, 2024, and expense information as of March 31, 2024. The Trustees considered that they receive from the Adviser and review on a regular basis over the course of the year, data regarding the Funds’ performance, including information about each Fund’s performance in comparison to its peers and benchmarks, and analyses by the Adviser of the Fund’s performance. The Trustees also considered the Funds’ long-term performance records and the Adviser’s continued efforts to improve the Funds’ performance. The Trustees compared each Fund’s performance, advisory fee and expenses with its peer group, and considered the differences between each Fund and funds in the peer group. The Trustees considered the size of each Fund in comparison to its peers, including whether the peer funds were part of a larger fund complex. The Trustees considered the following Fund-specific factors:
Alternative Energy Fund
(1) The Fund’s advisory fee was higher than the median fee charged to the three pure alternative energy mutual funds in the Morningstar “Foreign Small/Mid Value” category; (2) the Fund’s total expenses were the same as peer group median; (3) the Adviser voluntarily reduced its advisory fee from 1.00% to 0.80% effective January 1, 2023; (4) the Adviser agreed to limit the Fund’s expense ratio through June 30, 2027; and (5) the Fund had the same return as the peer group median for the one-year period, outperformed its peer group median for the three- and five-year periods, underperformed its peer group for the ten-year period; and the Fund underperformed the MSCI World NR Index, one of its benchmark indices, for the one-, three-, five-, and ten-year periods.
Asia Focus Fund
(1) The Fund’s advisory fee was at the high end of the advisory fees charged to comparable mutual funds in the Morningstar “Pacific/Asia Ex-Japan Stock” category; (2) the Fund’s total expenses were at the high end of the expenses incurred by its peers; (3) the Adviser agreed to limit the Fund’s expense ratio through June 30, 2027; and (4) the Fund had the same return as the peer group median for the one-year period, and underperformed the MSCI AC Far East ex Japan Index, its benchmark index for the one-year period; and the Fund underperformed its peer group median and the MSCI AC Far East ex Japan Index for the three-, five- and ten-year periods.
China & Hong Kong Fund
(1) The Fund’s advisory fee was above the median advisory fee charged to comparable mutual funds in the Morningstar “China Region” category; (2) the Fund’s total expenses were higher than the median expenses incurred by its peers but lower than those of one peer; (3) the Adviser agreed to limit the Fund’s expense ratio through June 30, 2027; and (4) the Fund had outperformed its peer group median for the one- and three-year periods and underperformed the peer group median for the five- and ten-year periods; and the Fund had underperformed the Hang Seng Composite Index, its benchmark index, for the one-, three-, five-, and ten-year periods.
Global Energy Fund
(1) The Fund’s advisory fee was the same as the median advisory fee charged to comparable mutual funds in the Morningstar “Equity Energy” category; (2) the Fund’s total expenses were above the median expenses incurred by its peers but lower than those of two peer funds; (3) the Adviser agreed to limit the Fund’s expense ratio through June 30, 2027; and (4) the Fund underperformed its peer group median for the one-, three- and five-year periods, and had the same return as the peer group median for the ten-year period; and the Fund had outperformed the MSCI World Energy Index, its benchmark index, for the one-year period, but underperformed for the three-, five-, and ten-year periods.
Global Innovators Fund
(1) The Fund’s advisory fee was the slightly higher than the median advisory fee charged to comparable mutual funds in the Morningstar “Large Growth” category; (2) the Fund’s total expenses were slightly higher than the median of expenses incurred by the funds in its peer group but lower than those of 12 peer funds; (3) the Adviser agreed to limit the Fund’s expense ratio through June 30, 2027; and (4) the Fund had outperformed its peer group median for the one-, three-, five- and ten-year periods; the Fund had outperformed the MSCI World Index, one of its benchmark indices, for the one-, five-, and ten-year periods and underperformed the benchmark index for the three-year period; and the Fund had outperformed the Nasdaq Composite Index, another one of its benchmark indices, for the one-, and three-year periods, and underperformed the Nasdaq Composite Index for the five-, and ten-year periods.
Renminbi Yuan & Bond Fund
(1) The Fund’s advisory fee was below the median advisory fee charged to comparable mutual funds in the Morningstar “Emerging Markets Local Currency” category; (2) the Fund’s total expenses were the same as the peer group median; (3) the Adviser agreed to limit the Fund’s expense ratio through June 30, 2027; and (4) the Fund outperformed its peer group median for the ten-year period but underperformed its peer group median for the one-, three-, and five-year periods; and the Fund had underperformed the iBoxx Hang Seng Markit Offshore RMB Overall Index, its benchmark index, for the one-, three-, five-, and ten-year periods.
With respect to each Fund, the Board concluded that the Adviser’s willingness to limit the Fund’s total annual fund operating expenses through at least June 30, 2027, would provide stability to the Fund’s expenses during that period.
Costs of Services and Profitability
The Trustees considered the financial information provided by the Adviser, including the profitability of each Fund to the Adviser, the Adviser’s profitability in general and the firm’s retention of key personnel. The Trustees noted that the Adviser had waived a portion of its advisory fee for the Alternative Energy Fund, Asia Focus Fund, Global Energy Fund, Global Innovators Fund, and the Renminbi Yuan & Bond Fund, and that with respect to the Renminbi Fund, the Adviser’s net advisory fee was zero due to expense reimbursements by the Adviser. The Trustees also considered the Adviser’s efforts to lower the overall expenses for the Funds that have produced meaningful savings. The Board concluded that the profitability of each Fund to the Adviser, when positive, was reasonable.
Economies of Scale
The Trustees considered the size of each Fund and the Adviser’s willingness to institute breakpoints in the advisory fee as individual Funds reached higher asset levels and to use expense limitation agreements to reduce total annual fund operating expenses as evidence that to the extent economies of scale existed for each Fund, the Adviser was willing to share such economies of scale for the benefit of shareholders. The Board also considered the Adviser’s willingness to institute breakpoints in the advisory fees as individual Funds reach higher asset levels.
After considering the factors described above, the Board and the Independent Trustees separately determined that the overall fee arrangement between the Trust, on behalf of each Fund, and the Adviser was fair and reasonable, and that continuance of the Agreement was in the best interests of each Fund and its shareholders, and accordingly, approved the continuance of the Agreement through May 31, 2025.
Item 12. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable to open-end investment companies.
Item 13. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable to open-end investment companies.
Item 14. Purchases of Equity Securities by Closed End Management Investment Company and Affiliated Purchasers.
Not applicable to open-end investment companies.
Item 15. Submission of Matters to a Vote of Security Holders.
The registrant has not made any material changes to the procedures by which shareholders may recommend nominees to the registrant’s Board of Trustees.
Item 16. Controls and Procedures.
(a) The Registrant’s Principal Executive Officer and Principal Financial Officer 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 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 17. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
Not applicable to open-end investment companies.
Item 18. Recovery of Erroneously Awarded Compensation.
(a) Not applicable.
(b) Not applicable.
Item 19. Exhibits.
(1) Any code of ethics or amendment thereto, that is 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.
(a) (2) Any policy required by the listing standards adopted pursuant to Rule 10D-1 under the Exchange Act (17 CFR 240.10D-1) by the registered national securities exchange or registered national securities association upon which the registrant’s securities are listed. Instruction to paragraph (a)(2). – Not Applicable.
(b) Certification pursuant to Section 906 of the Sarbanes Oxley Act of 2002. Filed 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) | Guinness Atkinson Funds | |
By (Signature and Title) | /s/ James J. Atkinson | |
James J. Atkinson, President and Principal Executive Officer | ||
Date | 9/6/2024 |
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/ James J. Atkinson | |
James J. Atkinson, President and Principal Executive Officer | ||
Date | 9/6/2024 | |
By (Signature and Title) | /s/ Rita Dam | |
Rita Dam, Treasurer and Principal Financial Officer | ||
Date | 9/6/2024 |