We wish we had the capacity to meet all of the interest from our valued clients, but we believe limiting our capacity is a critical element in being a premier global small and micro cap investment firm.
Salt Lake City, UT (PRWEB) February 20, 2014
Just two months after launching the Grandeur Peak Emerging Markets Opportunities Fund, Grandeur Peak Global Advisors announced that it will Soft Close the Fund on March 5th. They will simultaneously Hard Close the firm’s two original Funds, the Grandeur Peak Global Opportunities Fund and the Grandeur Peak International Opportunities Fund.
The Soft closure of the Emerging Markets Opportunities Fund (GPEOX/GPEIX) means that no new investors will be accepted after March 5th, but existing shareholders of the Fund will be able to continue investing in the Fund. Financial advisors and retirement plans with clients in the Fund prior to the closure will be able to continue investing in the Fund for existing as well as new clients.
The Hard closure of the Global Opportunities (GPGOX/GPGIX) and International Opportunities (GPIOX/GPIIX) Funds means purchases will no longer be accepted into these Funds from either new or existing shareholders after March 5th, unless the purchase is part of:
- a retirement plan/account which held the Fund prior to the closure, or
- an automatic investment plan established in the Fund prior to the closure, or
- an automatic reinvestment of a distribution made by the Fund.
Eric Huefner, President, announced the closures saying:
"We have talked openly about closing our funds at very low asset levels. We plan to ultimately have six or seven small/micro cap strategies, and given the overlap between our strategies, capacity is considered at the firm level, not just at the product level, to maintain our investment flexibility.
Last April, we announced the soft closure of the Global Opportunities strategy when it reached $400M and the International Opportunities strategy as it hit $300M. Due to performance and tremendous interest from existing shareholders, both of these strategies have more than doubled in size since we announced these closures last year. Although the current levels are not pushing us on our aggregate cap limit for the firm, they have exceeded our original allocation for these strategies and are consequently requiring us to reduce the already small size of the other existing and forthcoming strategies, including the recently launched Emerging Markets Opportunities Fund which just passed $150M."
Added firm co-founder and Chief Investment Officer, Blake Walker, “The list of interesting, underfollowed companies around the world is tremendous, and we have our hands full finding and selecting what we believe are the best investments. We are fortunate to have a passionate team of investors who love this challenge. We wish we had the capacity to meet all of the interest from our valued clients, but we believe limiting our capacity is a critical element in being a premier global small and micro cap investment firm.”
After these closures the only Grandeur Peak Fund accepting new investors will be the Grandeur Peak Global Reach Fund (GPROX/GPRIX), which was launched last June and is considered the firm’s flagship global fund.
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 all Grandeur Peak Funds is long-term growth of capital. The Emerging Markets Opportunities Fund and the Global Reach Fund have limited operating history.
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.
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.
Grandeur Peak Funds are distributed by ALPS Distributors, Inc (“ADI”). Eric Huefner is a registered representative of ADI.