Grandeur Peak Global Reach Fund to hard close with exceptions

TheShadow

http://www.sec.gov/Archives/edgar/data/915802/000091580214000043/grandeurpeakglobalreachhardc.htm

497 1 grandeurpeakglobalreachhardc.htm

FINANCIAL INVESTORS TRUST

Grandeur Peak Global Reach Fund
(the “Fund”)


SUPPLEMENT DATED SEPTEMBER 5, 2014 TO THE PROSPECTUS
DATED AUGUST 31, 2014


This Supplement updates certain information contained in the Prospectus for the Fund dated August 31, 2014. You should retain this Supplement and the Prospectus for future reference. Additional copies of the Prospectus may be obtained free of charge by visiting our web site at www.grandeurpeakglobal.com or calling us at 1.855.377.PEAK (7325).

Effective as of the close of business on September 30, 2014, the Fund will close to all purchases, except as described below (the “Hard Closure”). The Hard Closure of the Grandeur Peak Global Reach Fund means purchases will no longer be accepted into this Fund from either new or existing shareholders after September 30th, unless the purchase is part of one of the listed exceptions:

Institutional Shareholders:
•401k plans with an existing position
•Automatic rebalancing of an existing position (as long as purchase amounts are de minimis, as determined by Grandeur Peak)

Retail Shareholders (Direct Shareholders Only):
•Retirement Accounts
•Education Savings Accounts
•Minor Accounts (UTMA/UGMA)
•Pre-established Automatic Investment Plans

All Shareholders:
•Automatic reinvestment of the Fund distribution

These exceptions will be implemented wherever possible, but they may not be possible on all intermediary platforms.

As described in the Prospectus, the Fund’s investment adviser, Grandeur Peak Global Advisors, LLC, or the Fund each retains the right to make exceptions to any action taken to close a Fund or limit inflows into a Fund.


INVESTORS SHOULD RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE

jlev

oy.

AndyJ

Criminy ... wasn't expecting this quite so soon.

Thanks, Shadow; it's not even on the news page on the GP site yet.

Old_Joe

Thank you for the valuable info. You do a great job of watching our backsides.

Regards- OJ

Note: Just increased our position in GPROX at Schwab. Thanks again!

catch22

@The Shadow
Thank you again for your time and efforts with the events of funds.
Catch

Kaspa

Thanks Shadow. I had set it up for automatic investing at Schwab to build up to the
intended position over six months and decided to bulk purchase right away.

davfor

Many thanks for the heads up. They are really intent on controlling inflows. That's good.

I had been planning to wait for the Fallen Angels fund to materialize to decide whether to add to GPROX or to invest in that new fund. Instead, I will add to GPROX this coming week. I will then decide whether to switch some or all of those newly invested funds to the Fallen Angels fund if and when it materializes. I am primarily investing in the management team and market segment anyway with this investment.

I have also switched my GPROX distributions to the automatic reinvestment mode.

thanks again....

AndyJ

The GPROX hard-close news is now at the top of the list on the GP news page. (Nothing really new there beyond what Shadow posted.)

jlev

Question: When investing directly with a fund company it doesn't seem to make sense to me to pay a 12b-1 fee, is it possible or likely to be able to get the minimums for institutional shares waived in order to circumvent the 12b-1 fees?

I figure I will contact them and ask Monday, but thought I'd check if people here thought it a reasonable question.

willmatt72

Old_Joe said:

Thank you for the valuable info. You do a great job of watching our backsides.

Regards- OJ

Note: Just increased our position in GPROX at Schwab. Thanks again!

I'll be doing the same with this fund at Fidelity before Sept. 30.

mrdarcey

jlev said:

Question: When investing directly with a fund company it doesn't seem to make sense to me to pay a 12b-1 fee, is it possible or likely to be able to get the minimums for institutional shares waived in order to circumvent the 12b-1 fees?

I figure I will contact them and ask Monday, but thought I'd check if people here thought it a reasonable question.

I'd be willing to bet your answer will be no, and they'll tell you all about the institutional shares instead and that the fee waiver essentially is GP eating the 12b-1. Someone else might know for certain (Charles, BobC, David_Snowball?), but I suspect share classes of funds have to charge the same stated fees to all customers across all platforms to prevent a conflict of interest. I also suspect brokerage platforms would stop carrying any fund company that charged a lower amount to buy the same share class elsewhere.

A better question might be, since they are essentially saying you can't buy these funds on supermarket type platforms, whether they intend to discuss doing away with the 12b-1s when they are up for their yearly renewal?

jlev

mrdarcey said:

...

Someone else might know for certain ( @Charles, @BobC, @David_Snowball?), but I suspect share classes of funds have to charge the same stated fees to all customers across all platforms to prevent a conflict of interest. I also suspect brokerage platforms would stop carrying any fund company that charged a lower amount to buy the same share class elsewhere.

A better question might be, since they are essentially saying you can't buy these funds on supermarket type platforms, whether they intend to discuss doing away with the 12b-1s when they are up for their yearly renewal?

That is a terrifically interesting question. I suspect that since some of those fees theoretically also cover maintenance they might not, but I'd imagine they should be reducible.

mrdarcey

@jlev

Please let us know what they say. It certainly looks like a great majority of the monies collected with 12b-1s are going to broker-dealers. I'd be interested to know whether the move to only allow clients with funds held through GP's distributor to continue to contribute are to avoid complications with individual fund platforms, a move to eventually cut 12b-1s (or other fees), or both.

Pages 42-3 in GPROX's SAI discuss the 12b-1:

"Under the terms of the Plan, the Trust is authorized to make payments to the Distributor, as defined later in this SAI, for remittance to retirement plan service providers, broker-dealers, bank trust departments, financial advisors, and other financial intermediaries, as compensation for distribution and/or shareholder services performed by such entities for their customers who are investors in the Fund. Financial intermediaries may from time to time be required to meet certain criteria in order to receive 12b-1 fees. The Distributor is entitled to retain some or all fees payable under the Plan in certain circumstances (which may exceed actual expenses incurred), including when there is no broker of record or when certain qualification standards have not been met by the broker of record."

Amounts Expensed Under the 12b-1 Plan

For the fiscal year ended April 30, 2014, the total amounts paid by the Investor Class shares of each Fund to ADI (substantially all of which ADI paid out as compensation to broker-dealers and other service providers) under the Investor Class Plan are summarized below.

sligo

Thanks for the timely heads-up as I will also be adding to my position this week. Amazing the GP folks are actually doing what they said they would do, have to appreciate how they are sticking to their plan.

catch22

Ah, the rub.....Locking up money, albeit; with an apparent excellent management team, as of today!
At least with our 529 educational account, one may move the monies once a calendar year.
Oy, what to do with GPROX.
Regards,
Catch

jlev

@mrdarcey

The response I received through their customer service line was a very unambiguous no. Perhaps someone else taking a different tact on the question might be more successful. (I did not discuss the addition/setup of a repeating deposit or pooling assets from different funds/accounts - partially due to the general direction of the conversation.)