Grandeur Peak Funds Outperform in Tough 2Q: Funds Decline Noticeably Less than Their Benchmark during the Weak Second Quarter

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Grandeur Peak Global Advisors, a boutique manager focused on Global Small Cap investing, released their 2Q fund commentaries to shareholders this past week. It noted that both of the Grandeur Peak funds declined in value during the quarter, but each outperformed their benchmark index by several hundred basis points.

Grandeur Peak Wasatch Advisors Global Small Cap

Blake Walker, Portfolio Manager and CIO

With our long-term investment horizon, we actually like volatility. It again shows the inefficiencies in the market, and often provides us with opportunities to purchase our favorite companies at more attractive values.

Grandeur Peak Global Advisors, a boutique manager focused on Global Small Cap investing, released their 2Q fund commentaries to shareholders this past week. It noted that both of the Grandeur Peak funds declined in value during the quarter, but each outperformed their benchmark index by several hundred basis points. Said CEO Robert Gardiner “Although it is painful to watch asset values decline, down markets often provide opportunities for our companies to become stronger and take market share. We hope that by investing in the highest quality small cap companies we can outperform in down markets, and also see our companies strengthen their position for the future.”

Second Quarter Returns (as of 6/30/12):

Grandeur Peak Global Opportunities Fund, Investor Class, -3.90% vs Russell Global Small Cap Index -6.56%.
Grandeur Peak International Opportunities Fund, Investor Class, -4.85% vs Russell Global Ex U.S. Small Cap Index -8.32%.

Since Inception Returns (as of 6/30/12)*:

Grandeur Peak Global Opportunities Fund, Investor Class, +11.00% vs Russell Global Small Cap Index +5.95%.
Grandeur Peak International Opportunities Fund, Investor Class, +8.00%% vs Russell Global Ex U.S. Small Cap Index +0.17%.

*Inception date of 10/17/11.

The Grandeur Peak Funds are new and have limited performance history. Because of ongoing market volatility, fund performance may be subject to substantial short-term changes.

Data shows past performance, which is not indicative of future performance. Current performance may be lower or higher than the data quoted. To obtain the most recent month-end performance data available, please visit http://www.grandeurpeakglobal.com. The Advisor may absorb certain Fund expenses, without which total return would have been lower. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. Total Expense Ratio: Gross 2.35% / Net 1.75% for Investor Class Shares. The Advisor has contractually agreed to limit certain expenses to 1.75% for Investor Class Shares through at least 8/31/2013. See the prospectus for additional information regarding Fund expenses.

Grandeur Peak Funds will deduct a 2.00% redemption proceeds fee on Fund shares held 60 days or less. For more complete information including charges, risks and expenses, read the prospectus carefully.

Blake Walker, Chief Investment Officer, added “Market volatility, like we saw this past quarter, can be scary for investors. With our long-term investment horizon, we actually like volatility. It again shows the inefficiencies in the market, and often provides us with opportunities to purchase our favorite companies at more attractive values.”

The Grandeur Peak 2Q Commentaries were written by Mark Siddoway, Portfolio Specialist and Head of Client Relations, in conjunction with the portfolio managers. Holding the CFA & CAIA designations, and with a decade of experience selecting managers and allocating assets in the CIO office of various institutions, Mark is well positioned to put each quarter’s results in context of the current environment and the long-term investment opportunity. The full Grandeur Peak Funds 2Q Commentary can be found on the Grandeur Peak website.

About Grandeur Peak Global Advisors:
Grandeur Peak Global Advisors is comprised of a highly seasoned and collaborative research team taking a bottom-up approach to investing using disciplined global screening, rigorous company due diligence, and close attention to valuation to find what we believe to be the best investment opportunities around the world. Our bias is towards small and micro cap companies because we believe we can find faster growth among these firms, and often at better valuations due to the lack of analyst coverage. Grandeur Peak Global Advisors, LLC is an employee-owned investment adviser headquartered in Salt Lake City, Utah and registered with the Securities and Exchange Commission under the Investment Advisers Act of 1940.

The objective of both the Grandeur Peak Global Opportunities Fund and the Grandeur Peak International Opportunities Fund is long-term growth of capital.

Risks:
Mutual fund investing involves risks and loss of principal is possible. Investing in small and micro cap funds will be more volatile and loss of principal could be greater than investing in large cap or more diversified funds.

Investing in foreign securities entails special risks, such as currency fluctuations and political uncertainties, which are described in more detail in the prospectus. Investments in emerging markets are subject to the same risks as other foreign securities and may be subject to greater risks than investments in foreign countries with more established economies and securities markets.

An investor should consider investment objectives, risks, charges, and expenses carefully before investing. To obtain a prospectus, containing this and other information, visit http://www.grandeurpeakglobal.com or call 1-855-377-PEAK (7325). Please read it carefully before investing.

The Russell Global Small Cap Index offers investors access to the small-cap segment of the global equity universe. It is constructed to provide a comprehensive and unbiased barometer for the small-cap segment and is completely reconstituted annually to accurately reflect the changes in the market over time. The Russell Global ex-U.S. Small Cap Index measures the performance of the small-cap segment of the global equity universe, excluding companies assigned to the United States. You cannot invest directly in these or any indices.

CFA® is a trademark owned by CFA Institute.

Grandeur Peak Funds are distributed by ALPS Distributors, Inc (“ADI”). Eric Huefner and Mark Siddoway are registered representative of ADI.

GPG000160 10/31/2012

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Eric Huefner, President