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Steven Goldberg: New Grandeur Peak Funds Are Worth Getting Excited About
FYI: Steven normally don’t get excited when a mutual fund company unveils a new product. Most new funds amount to little more than asset-gathering machines for their sponsors. But he's enthusiastic about three new funds that Grandeur Peak, a relatively unknown Salt Lake City money-management firm, is getting ready to launch: Global Stalwarts (it will trade under symbol GGSOX), International Stalwarts (GISOX) and Global Micro Cap (GPMCX).
I still wish I could buy more shares of GPROX. Do not agree with a hard close of this fund and then start new funds. Close fund yes, but a soft close please.
As of the close of business on March 5, 2014, the Fund is closed to new investors seeking to purchase shares of the Fund either directly or through third party intermediaries, subject to certain exceptions for financial advisors whose clients have already established an account in the Fund and participants in certain qualified retirement plans with an existing position in the Fund as of May 1, 2013.
Existing shareholders of the Fund as of March 5, 2014 may continue to purchase additional shares of the Fund. The Fund’s investment adviser retains the right to make exceptions to any action taken to close the Fund or limit inflows into the Fund.
Per: Existing shareholders of the Fund as of March 5, 2014 may continue to purchase additional shares of the Fund.
Aside from the advisor/retirement accounts noted. Thinking that this statement regards direct investments via the fund company, eh?
Below is the message when attempting an additional purchase of GPROX at Fido. Error: (009078) The mutual fund you entered is not open for subsequent purchases. Please review your order or call a Fidelity representative at 1-800-544-6666.
Additional shares cannot be purchase thru Fidelity for GPROX. They may be purchased directly from GP but my account is not directly with Grandeur Peak.
As of September 30, 2014 GPROX is hard closed to shareholders holding through third parties. As Art noted you can add if holding th fund through GP directly. I wonder if one could add if they transferred the fund holdings to GP from a third party.
If I cannot add to GPROX at Fidelity I will most likely look for another fund. Not my first choice though. Between my IRA and ROTH I have 7 funds. 6 of the 7 are closed in some fashion. MAPTX, IVWIX, ARTGX, VVPSX, GPROX, DIBRX. The only open fund is FPACX which maybe should have closed.....
There's a supplement at the beginning of the prospectus that overrides the paragraphs @Old_Joe highlighted and hard closes the funds, whereas the paragraphs above reference the initial soft close.
The new language is:
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)
All Shareholders: • Automatic reinvestment of the Fund distribution
Separately, I think it's a bit funny when people suggest the Global Micro Cap fund might only be open for one day. It will help that they're going to limit any individual's investment to $100K, but that's still just 250 people if they all invest the maximum, which I'm sure not everyone will do. I figure it might be lucky if the fund is open until lunchtime on day one. $25 million is not very much. I wonder if they would ever consider or whether it's even possible to require people to subscribe in advance and then to prorate shares of the fund to those who subscribed based on the response they get. Has anyone ever experienced something like that?
I moved my holding from Fidelity just before the hard close and have been able to add to my holdings in Grandeur Peak, not sure what would happen if you moved them now, but their phone help is usually very good. You could call and ask.
They are making it difficult to add to a fund if currently held in a Brokerage account. I want them to open the fund to existing shareholders but if they are not going to do that then a hard close should be just that.
@swamprev, was it a retirement account you moved? It seems like a taxable account still wouldn't be able to add unless you had a pre-established automatic investment plan. If I was able to add to a taxable account I would move it for sure.
Had to go back & reread the text on the Stalwarts funds: says capacity is ~ $7B for the two, so they should be available for a while, or at least not hard closed for a while.
If anyone bought them not expecting them to be corrected as they did, then due dilligence is not followed in my opinion. They are small/micro cap growth funds ala Wasatch ones, and that too global prefix. Obviously, they will be very volatite.
As long as enough number of funds are started at the "right" time, previous bad records if any can be merged away into newer funds started at the "right" time. Let me go out on a limb here and say all the NEW GP funds will have stellar 5 year records. I think I'm buying all of them especially if market tanks some more.
GP is not an absolute return manager. These funds held up just fine on a crazy day for global equity markets. Also.... one day of performance is really how you're going to evaluate a manager?
Comments
PURCHASE AND SALE OF FUND SHARES
As of the close of business on March 5, 2014, the Fund is closed to new investors seeking to purchase shares of the Fund either directly or through third party intermediaries, subject to certain exceptions for financial advisors whose clients have already established an account in the Fund and participants in certain qualified retirement plans with an existing position in the Fund as of May 1, 2013.
Existing shareholders of the Fund as of March 5, 2014 may continue to purchase additional shares of the Fund. The Fund’s investment adviser retains the right to make exceptions to any action taken to close the Fund or limit inflows into the Fund.
Per: Existing shareholders of the Fund as of March 5, 2014 may continue to purchase additional shares of the Fund.
Aside from the advisor/retirement accounts noted.
Thinking that this statement regards direct investments via the fund company, eh?
Below is the message when attempting an additional purchase of GPROX at Fido.
Error: (009078) The mutual fund you entered is not open for subsequent purchases. Please review your order or call a Fidelity representative at 1-800-544-6666.
http://www.grandeurpeakglobal.com/documents/pdfs/grandeurpeakglobal-pr-20140905.pdf
As of September 30, 2014 GPROX is hard closed to shareholders holding through third parties. As Art noted you can add if holding th fund through GP directly. I wonder if one could add if they transferred the fund holdings to GP from a third party.
The new language is:
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
Separately, I think it's a bit funny when people suggest the Global Micro Cap fund might only be open for one day. It will help that they're going to limit any individual's investment to $100K, but that's still just 250 people if they all invest the maximum, which I'm sure not everyone will do. I figure it might be lucky if the fund is open until lunchtime on day one. $25 million is not very much. I wonder if they would ever consider or whether it's even possible to require people to subscribe in advance and then to prorate shares of the fund to those who subscribed based on the response they get. Has anyone ever experienced something like that?
http://www.sec.gov/Archives/edgar/data/806633/000095013505000011/b52978jte497.txt
Also, here is a previously posted link for an article regarding initial offering for WAIOX when Gardiner and Blake were at Wasatch .
http://articles.baltimoresun.com/2004-11-07/business/0411060187_1_mutual-funds-closed-funds-international-opportunities
Here's what happened to the four outstanding Grandeur Peak funds yesterday (8/24/15):
GPRO 11.81 -0.57 (-4.60%) -
GPGOX 3.01 -0.14 (-4.44%) -
GPIOX 2.93 -0.14 (-4.56%) -
GPEOX 9.19 -0.53 (-5.45%)
Are you excited enough yet??