On Monday, Goldman Sachs Asset Management (GSAM) announced that the reorganization of its five thematic ETFs into the Goldman Sachs Innovate Equity ETF (GINN) has been completed. GINN will commence trading on the NYSE Arca, Inc. upon market open on November 9, 2020. GINN is a single ticker solution that represents the five themes formerly represented by the Goldman Sachs Thematic ETFs. The fund is competitively priced to investors at 50 basis points.
The five Thematic ETFs (each, an “Acquired Fund” and collectively, the “Acquired Funds”) that were reorganized into GINN are:
|•||Goldman Sachs Data-Driven World ETF|
|•||Goldman Sachs Finance Reimagined ETF|
|•||Goldman Sachs Human Evolution ETF|
|•||Goldman Sachs Manufacturing Revolution ETF|
|•||Goldman Sachs New Age Consumer ETF|
As a result of the Reorganization, the five themes represented by the Acquired Funds – Data-Driven World, Finance Reimagined, Human Evolution, Manufacturing Revolution, and New Age Consumer – are now combined on an equal-weighted basis in GINN.
“These themes, now combined, offer investors a single-point solution for exposure to the companies we’ve identified as driving technological innovation and secular growth,” said GSAM’s Global Head of ETFs, Michael Crinieri. “By leveraging GSAM’s investment culture, set atop the firm’s global platform, we can offer a simple, yet highly-differentiated product that represents attractive value at minimal cost.”
GINN seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the Solactive Innovative Global Equity Index (the “Index”). The Index is owned and calculated by Solactive AG. The Index combines the five themes on an equal-weighted basis to provide exposure to companies that may benefit from technological innovation and the resulting changes in the economy.
When the NYSE Arca, Inc. opens on Monday, November 9, 2020, shareholders of each Acquired Fund will hold newly issued shares of GINN, the aggregate net asset value (“NAV”) (not the market value) of which will equal the aggregate NAV (not the market value) of the shares of such Acquired Fund held by such shareholders as of the valuation time specified in the Agreement and Plan of Reorganization (although such shareholders will receive cash for fractional shares).
The Reorganization was a tax-free event, and as a result, shareholders of the Acquired Funds are not expected to recognize a gain or loss for federal income tax purposes as a result of the Reorganization (except any gain or loss that may result from the receipt of cash in lieu of fractional shares). The Surviving Fund has not commenced investment operations and does not currently have shareholders. Detailed information on the Reorganization is contained in the Joint Information Statement/Prospectus previously filed with the SEC.
The conversion ratios were based on the relative NAV per share of each Acquired Fund and GINN as of November 6, 2020, as listed below:
|Surviving Fund||NAV per share||Conversion Ratio*|
|Goldman Sachs Innovate Equity ETF||$50.03||N/A|
|Goldman Sachs Data-Driven World ETF||$72.66||1.4523|
|Goldman Sachs Finance Reimagined ETF||$66.92||1.3375|
|Goldman Sachs Human Evolution ETF||$68.36||1.3663|
|Goldman Sachs Manufacturing Revolution ETF||$77.77||1.5544|
|Goldman Sachs New Age Consumer ETF||$91.22||1.8231|
GINN issued approximately 6,150,000 new shares in connection with the Reorganization. Following the closing of the Reorganization, GINN’s total assets and NAV per share were approximately $307,712,434 and $50.03 respectively.
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