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Frequent Contributor

Grandeur Peak funds update

FYI it appears that all their funds are now completely open, except for Global Microcap which is open to new investors directly through GP. Also their newest fund, Global Contrarian, now has all holdings being reported.

Everything available here:

https://www.grandeurpeakglobal.com

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Explorer ○

Re: Grandeur Peak funds update

Concerning the GP Micro Cap Fund, I believe someone or somebody must already have an existing position in which to buy shares. See the news release from GP

 

https://www.grandeurpeakglobal.com/documents/grandeurpeakglobal-pr-20200331.pdf

 

Here is the small print:

* The Grandeur Peak Global Micro Cap Fund is open through financial intermediaries to shareholders who currently hold a position in the Fund. Financial advisors with clients in the Fund are able to invest in the Fund for both existing as well as new clients. The Fund also remains open to all participants of retirement plans currently holding a position in the Fund.

Here is the SEC filing indicating the same thing as the small print.

https://www.sec.gov/Archives/edgar/data/915802/000139834420006030/fp0051857_497.htm

 

 

 

 

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Participant ○○○

Re: Grandeur Peak funds update

Chang - Which Grandeur Peak fund do you really like? ie. If you could invest in only one of their funds which one would it be?

 

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Frequent Contributor

Re: Grandeur Peak funds update


@waffle wrote:

Chang - Which Grandeur Peak fund do you really like? ie. If you could invest in only one of their funds which one would it be?


I’m not sure. I own only Global Stalwarts, and it’s done well. Even after 1Q2020 it’s still well into profit.

All of their funds are pretty much the same, they just fish in different ponds. I guess you o it have to decide where you want exposure, and pick your market cap preference.

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Participant ○○

Re: Grandeur Peak funds update

These look tempting based on trailing performance numbers, especially the International Stalwarts fund.

But part of this recent strong performance is due to the managers' preference for companies far to the growth end of the spectrum. That has definitely been the best place to be recently. So I wonder how much of their recent performance is just due to that preference, and how much is due to more durable reasons. 

 

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Explorer ○

Re: Grandeur Peak funds update

Here is  response from David Snowball (from MFO) reg GP funds?

"GP has two product lines, so to speak: their core funds and their Stalwart funds. Their core competency is global micro cap to global very-small cap. That's the focus on the capacity-constrained core funds. The Stalwart funds were later additions, meant to offer funds with relatively unconstrained capacity, largely populated with stocks that grew too big to remain in the core funds.

GP defined Global Reach as their core fund, representative of their best ideas regardless of constraints such as size or style. In theory, all of the other funds are sub-sets of the Global Reach universe."

 

FWIW, I hold GPROX, GPMCX and the sister fund RNWOX.

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Frequent Contributor

Re: Grandeur Peak funds update


@rthiru wrote:

Here is  response from David Snowball (from MFO) reg GP funds?

"GP has two product lines, so to speak: their core funds and their Stalwart funds. Their core competency is global micro cap to global very-small cap. That's the focus on the capacity-constrained core funds. The Stalwart funds were later additions, meant to offer funds with relatively unconstrained capacity, largely populated with stocks that grew too big to remain in the core funds.

GP defined Global Reach as their core fund, representative of their best ideas regardless of constraints such as size or style. In theory, all of the other funds are sub-sets of the Global Reach universe."

 

FWIW, I hold GPROX, GPMCX and the sister fund RNWOX.


After a quick look at a few of their funds’ performance records and ERs, “Reach” looks like a better choice than “Opportunities”. 

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Frequent Contributor

Re: Grandeur Peak funds update


@rthiru wrote:

FWIW, I hold GPROX, GPMCX and the sister fund RNWOX.


They will HARD close GPMCX again, at a certain point, I guess. Doesn’t that make it difficult to build up a meaningful position? Or did you lump sum a ton of money into it from the start?

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Explorer ○

Re: Grandeur Peak funds update

You can contribute up to $6,500 per year into one GPMCX account or across both taxable/non-taxable accounts in total.  

You can try to open an account directly with GPMCX.  I just opened a non-taxable account since I had already had a taxable account with them.

My total contributions between the two accounts will amount to $6,500 for 2020.

 

 

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Explorer ○

Re: Grandeur Peak funds update

One more take on GP funds from MFO..

Link

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Participant ○

Re: Grandeur Peak funds update

Chang,

This from Grandeur Peak's website:

"GPMCX: *Soft close

*Existing investors in the fund may purchase additional shares. Open to new investors who purchase directly from Grandeur Peak Funds."

I have held GPMCX directly from the fund and have been able to add to it all along.

Some have said GPMCX might not be necessary if one held GPROX/GPRIX, the flagship fund from this company.

Edit to add: I have found the Customer Service folks to be highly responsive, if you have questions about how much and when you can contribute.

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Frequent Contributor

Re: Grandeur Peak funds update

Why do their investor and “institutional” share classes have the same minimums? What’s the point then?

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Participant ○

Re: Grandeur Peak funds update

Chang,

I don't know, but it's possible different platforms offer one or the other.

I entered institutional with a small investment and an automatic investing plan (still minimal).

It's possible that all direct-with-fund-family investors are directed into the institutional.

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Explorer ○

Re: Grandeur Peak funds update

They never offered the investor class for GPMCX.  The Global Micro Cap and Contrarian funds have had only the institutional class offered.  The other funds have both classes.  All of my GP holdings are institutional class.

Never understood why retail and institutional classes had same minimum, unless to be competitive with VG and Fido and other investment companies.  I think in one of their investor newsletters they explained why they were not going to offer an investor class of GPMCX,  

 

 

 

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Explorer ○

Re: Grandeur Peak funds update

I believe GPMCX, Contrarian and US equity Institutional funds are only available for direct purchase.

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Explorer ○

Re: Grandeur Peak funds update

Here is the explanation for offering only the institutional class of GPMCX from an old newsletter:

 

We want the Global Micro Cap Fund to be available to both our retail and institutional clients, but without the 0.25% 12b-1 fee that comes with the Investor share class. Our intention is to make the Institutional class available to all investors, and waive the minimum to $2000 for regular accounts and $100 for UTMA accounts. Retail investors will need to purchase the Fund directly through Grandeur Peak Funds, as intermediaries will unfortunately not be able to accommodate this exception.

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Re: Grandeur Peak funds update


@rthiru wrote:

Institutional funds are only available for direct purchase.


I bought GGSYX and GISYX at Fidelity a few years ago.

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Explorer ○

Re: Grandeur Peak funds update

Initially, you could not get the institutional class of funds easily; however, over time you could gain access to the institutional classes at brokerages.  

 

 

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Explorer ○

Re: Grandeur Peak funds update

@chang 

I believe if there is only one class (Institutional class) then it is only directly available.

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Explorer ○

Re: Grandeur Peak funds update

From a SEC filing for the US Stalwarts:

https://www.sec.gov/Archives/edgar/data/915802/000139834419022993/fp0048627_485bpos.htm


PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES
If you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Adviser or its affiliates may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment. Ask your salesperson or visit your financial intermediary’s website for more information.

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