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Grandeur Peak Global Micro Cap Fund subscription offering info
I just called GP (not the transfer agent). Emails are going out alphabetically to those subscribers awarded allotments. It is a slow process, but emails will be going out during the evening, probably even late to all awarded subscribers.
Looks like the close isn't 100% hard: you can set up an Automatic Investment Plan and add $500 / month to a maximum of $6000 / year.
I generally don't do AIP, since I work freelance and earn my money in irregular bursts, but it seems that will be the only option here, and I wonder if they'll close off that too at some point.
mine was in my email this morning...looks like the only option will be to open another account at GP. Will think about this during my 12 hour drive home today.
To those who already have assets at GP...do they allow AIP on hard-closed funds like GPGOX and GPIOX? If I decide to open an account there, I figure I may as well move all my GP funds and start an AIP. Thanks for the input!
@little5bee Yes, AIP is available on their other hard-closed funds too, but you may had to set it up already. Here's the language from the web site on GPIOX: †Closed to all investors, except existing investors with an established automatic investment plan and/or an established position in a retirement account.
Do most of the buyers of the new fund also still wait outside all night for concert tickets and apple phones and, dare I say, do you go shopping when the rest of the us are comatose on Thanksgiving?
Sorry, but I just don't get the hype. Nor the rush to be the first adopters of any fund.
Could someone articulate what "micro value" is?
Sounds like the process I go through searching for interesting (and potentially rare) pennies.
Hi @bee Knowing you keep an eye on "stuff" and have a bright and open mind regarding investments.................I will suspect that you, that not unlike myself; a "nano or micro" company that has issued public stock are likely all candidates for "value", eh? Whether they ever soar to a greater value; well, lots of variables.
Note: Our house doesn't have a position in the fund related to this thread.
Is this fund better suited for IRA account or individual ? Also I was wondering if any members have done a partial IRA transfer or if this is legal ? Thanks for your replies, Derf
This approach (buying into a new fund) might have some advantages, but the SEC produced this cautionary article and it seems to be a good general reminder of the success of any mutual fund:
-Scrutinize the fund's fees and expenses -Know how the fund impacts your tax bill -Consider the age and size of the fund -Consider the fund's portfolio turnover rate -Think about the volatility of the fund -Factor in the risks the fund takes to achieve its returns -Ask about recent changes in the fund's operations -Check the types of services offered and fees charged by the fund -Assess how the fund will impact the diversification of your portfolio
@bee, funny! I did do some of that stuff in my younger days but not anymore. In this case if you're not one of the first in the door you just don't get in, sort of like the World Series tickets I spent all night outside trying to get. In that case, though, I failed.
@Derf, I wonder the same as you about a partial IRA transfer since I have GPIOX and GPEOX in an IRA that might be worth transferring if I could add to them.
The queue to be notified is pretty long; it had not yet made it to my last name, slightly more than halfway thru the alphabet. (Amy Johnson, Sr. Manager of Client Relations, kindly took the time to check for me.) I speculate the notifications could wind into tomorrow.
The notification email includes info on how to transfer IRA assets into a new or existing account held by Grandeur Peak.
(I am not sure that answers the questions (different ones?) raised by LLJB and Derf.
If the emails are going out alphabetically, I must not be getting an allocation (I'm a 'B'), and I gave them a minimum figure. For those of you who have received allocations, do mind sharing/speculating what the max allocation is? I wonder if they will be sending emails to those who won't be receiving allocations? Thanks! Brian
I believe it may have been based on the first name, but I am not positive. GP individual told me a story that they received a telephone call and was told the same thing by a subscriber about not hearing anything about their subscription. The GP individual indicated it was based on their name in alphabetical order. The subscriber blamed it on his mother for giving him a "V" (kidding of course). I got the impression there were a few back office people working on it at GP which probably has limited staff resources, considering all of subscribers they had to notify.
Also was advised that information was in a spreadsheet. It would be easy to copy and paste the information into an email if it was first name, last name and amount of subscription order rather than swapping last name and first name around.
Keep in mind this was done at GP's office, not the transfer agent which probably has more staff resources at its disposal than GP.
Hi @Bee, I've got a ton of respect for your POV, but here's how I see this fund: experienced manager team, with great track record in similar strategies, opening a new, fund whose size will be very limited, in the precise area (foreign small cap) where various studies indicate that active management pays off.
New funds tend to outperform old ones, David's written about it (I forget which month), and to me the reason is common sense: every stock in the initial portfolio will be a "buy," whereas with older funds, you're buying a fund that has a lot of "holds" for tax reasons and what not.
Nothing's a sure bet in the investment world, and I am mostly moving to index funds, but this particular one seems as good a bet (with a small part of my portfolio) as I'm likely to find.
@briboe69: I should mention that my remark about alpha order was based on suggestions in this thread (and so I could be wrong; my first name is also middlish).
Because I had faxed my expression of intent and had received no follow-up, I was concerned enough to discover whether I was in the queue, or whether the fax had taken a wrong turn on its journey. Email addys are on the Indication of Interest form.
I asked for the minimum in IRA +AIP. Can't help with max!
@briboe69, they said in the email that the limit was consistent so in theory all you need to find is one person who got less than they asked for and you should know the max. I also think they said they wanted to make sure everyone who expressed interest got an allocation. I asked for less than Ben and also got what I asked for. I have to imagine they have at least 1500 people interested and likely a good deal more to have received requests for $85 million. I think if everyone who expressed interest made a maximum request the limit would be roughly $30K. Assuming there were a lot of people, like those who have commented here, who requested much less than that, I think the limit had to be lower in order to give everyone an allocation.
When you are talking about the maximum allocation, I'm assuming you mean to individual investors and not institutional? My guess is that there is an institutional client (or clients) that will be getting a good chunk of the allocation.
I don't think they're differentiating between an individual that's part of an institutional group and an individual that's not. Based on what they've said I think each "individual" is equally limited. I also think with only $25 million in assets, limits in the low 5 digits and not being able to add more than $6K each year, most institutions of any size just aren't going to bother. I'm sure there were people asking for an allocation of $100K and I'm wondering a little what they decide to do when they get told they can invest $25K, or whatever the limit was, and they can add $6K each year. Maybe I'm wrong but I could imagine some of them just deciding not to buy anything because it's just too small for their situation.
LLJB - thanks for the insight. The minimum I asked for was a little above your rough estimate so either I missed the cut or haven't got my allocation yet. Either way I'm not going to lose any sleep over it - I'm happy with my current portfolio which already includes GPGOX and GPEOX. JoJo26 - yes each individual investor.
Do most of the buyers of the new fund also still wait outside all night for concert tickets and apple phones and, dare I say, do you go shopping when the rest of the us are comatose on Thanksgiving?
Sorry, but I just don't get the hype. Nor the rush to be the first adopters of any fund.
Hi Bee,
This will mark the first time I've jumped through these types of hoops for a fund, but the reason is fairly straightforward.
To first justify this of course, one needs to determine if a fund with this capitalization target is what you want. If yes, then you look for a manager with a fund with a track record in this space and their record in terms of shareholder value, and you simply base your decision on that....you are betting on a manager and their track record.
The reason for this leap of faith is because, unfortunately in the small cap space, you don't have the luxury of watching a fund for a few years and then buying in. By the time you've made that decision, the fund is long since closed or the AUM is so bloated to make the capitalization targets meaningless.
Of course, one additional risk needs to be mentioned as pertains to funds discussed on financial sites...even one as esteemed as this, and that is the avoidance of group-think. But, that goes for any decision made in the midst of conversation I suppose.
Best wishes to all who applied for and received an allocation.
While I was also initially very interested in the fund, I ultimately decided to stay with GPROX which accounts for around 18% of our portfolio; and I did not want to open an account outside our online brokerage.
Again, best wishes and I hope you all make me look bad.
ps - David, most people probably do not realize that WAMVX has a better three year average return than all the GP funds.
I received my allocation yesterday. Today called to schedule the buy order, but was disappointed that it was not possible to schedule a buy order for Oct. 20th. I was told that phone orders can only be placed on 20th. or later. I was instructed to submit the buy order in writing. I am curious if anyone had a different experience.
I had the same experience, they won't take orders over the phone until the 20th. Considering the email said you could place an order anytime I guess they're getting bombarded with calls where they just have to tell people to call next week. That must be fun!
Got my allocation! Apparently the staff typed my email address in the computer incorrectly, so they called me today. It's nice that we can do the $500/mth automatic investment plan in addition to our allocation.
Where do you people get the $$ to invest $500/month ($6000/year) in a micro cap fund, which shouldn't be a large allocation of one's overall portfolio!
Congratulations! That was partially the reason why I initially called GP was to make sure my email address was legible and correct since I scanned it into a PDF file then emailed it. My handwriting is not the best.
I received my full allotment that was requested which will be for a taxable account. Did you receive your full amount or less?
It is no different than someone allocating $5,500 a year ($458.33 per month(less than 50 yrs old)) or $6,500 a year ($541.67 per month(more than 50 years old)) for a roth retirement account. If you fully fund your self directed retirement account it amounts to about the same thing. It may be the poster's retirement account as he never mentioned what type of account he was subscribing for.
Plus, the poster mentioned that it was nice to invest up to $500 per month. If my memory serves me, Wasatch offered a similar option when it offered the International Opportunities fund years ago.
Comments
Looks like the close isn't 100% hard: you can set up an Automatic Investment Plan and add $500 / month to a maximum of $6000 / year.
I generally don't do AIP, since I work freelance and earn my money in irregular bursts, but it seems that will be the only option here, and I wonder if they'll close off that too at some point.
To those who already have assets at GP...do they allow AIP on hard-closed funds like GPGOX and GPIOX? If I decide to open an account there, I figure I may as well move all my GP funds and start an AIP. Thanks for the input!
Sorry, but I just don't get the hype. Nor the rush to be the first adopters of any fund.
Could someone articulate what "micro value" is?
Sounds like the process I go through searching for interesting (and potentially rare) pennies.
Back to my pennies.
Knowing you keep an eye on "stuff" and have a bright and open mind regarding investments.................I will suspect that you, that not unlike myself; a "nano or micro" company that has issued public stock are likely all candidates for "value", eh?
Whether they ever soar to a greater value; well, lots of variables.
Note: Our house doesn't have a position in the fund related to this thread.
Take care,
Catch
Thanks for your replies,
Derf
This approach (buying into a new fund) might have some advantages, but the SEC produced this cautionary article and it seems to be a good general reminder of the success of any mutual fund:
-Scrutinize the fund's fees and expenses
-Know how the fund impacts your tax bill
-Consider the age and size of the fund
-Consider the fund's portfolio turnover rate
-Think about the volatility of the fund
-Factor in the risks the fund takes to achieve its returns
-Ask about recent changes in the fund's operations
-Check the types of services offered and fees charged by the fund
-Assess how the fund will impact the diversification of your portfolio
https://sec.gov/investor/pubs/mfperform.htm
One topic not mentioned in the SEC article is "manager skin in the game".
@Derf, I wonder the same as you about a partial IRA transfer since I have GPIOX and GPEOX in an IRA that might be worth transferring if I could add to them.
The notification email includes info on how to transfer IRA assets into a new or existing account held by Grandeur Peak.
(I am not sure that answers the questions (different ones?) raised by LLJB and Derf.
Thanks!
Brian
I believe it may have been based on the first name, but I am not positive. GP individual told me a story that they received a telephone call and was told the same thing by a subscriber about not hearing anything about their subscription. The GP individual indicated it was based on their name in alphabetical order. The subscriber blamed it on his mother for giving him a "V" (kidding of course). I got the impression there were a few back office people working on it at GP which probably has limited staff resources, considering all of subscribers they had to notify.
Also was advised that information was in a spreadsheet. It would be easy to copy and paste the information into an email if it was first name, last name and amount of subscription order rather than swapping last name and first name around.
Keep in mind this was done at GP's office, not the transfer agent which probably has more staff resources at its disposal than GP.
New funds tend to outperform old ones, David's written about it (I forget which month), and to me the reason is common sense: every stock in the initial portfolio will be a "buy," whereas with older funds, you're buying a fund that has a lot of "holds" for tax reasons and what not.
Nothing's a sure bet in the investment world, and I am mostly moving to index funds, but this particular one seems as good a bet (with a small part of my portfolio) as I'm likely to find.
Because I had faxed my expression of intent and had received no follow-up, I was concerned enough to discover whether I was in the queue, or whether the fax had taken a wrong turn on its journey. Email addys are on the Indication of Interest form.
I asked for the minimum in IRA +AIP. Can't help with max!
JoJo26 - yes each individual investor.
This will mark the first time I've jumped through these types of hoops for a fund, but the reason is fairly straightforward.
To first justify this of course, one needs to determine if a fund with this capitalization target is what you want. If yes, then you look for a manager with a fund with a track record in this space and their record in terms of shareholder value, and you simply base your decision on that....you are betting on a manager and their track record.
The reason for this leap of faith is because, unfortunately in the small cap space, you don't have the luxury of watching a fund for a few years and then buying in. By the time you've made that decision, the fund is long since closed or the AUM is so bloated to make the capitalization targets meaningless.
Of course, one additional risk needs to be mentioned as pertains to funds discussed on financial sites...even one as esteemed as this, and that is the avoidance of group-think. But, that goes for any decision made in the midst of conversation I suppose.
press
While I was also initially very interested in the fund, I ultimately decided to stay with GPROX which accounts for around 18% of our portfolio; and I did not want to open an account outside our online brokerage.
Again, best wishes and I hope you all make me look bad.
ps - David, most people probably do not realize that WAMVX has a better three year average return than all the GP funds.
I was instructed to submit the buy order in writing.
I am curious if anyone had a different experience.
Thanks
Congratulations! That was partially the reason why I initially called GP was to make sure my email address was legible and correct since I scanned it into a PDF file then emailed it. My handwriting is not the best.
I received my full allotment that was requested which will be for a taxable account. Did you receive your full amount or less?
@jojo26
It is no different than someone allocating $5,500 a year ($458.33 per month(less than 50 yrs old)) or $6,500 a year ($541.67 per month(more than 50 years old)) for a roth retirement account. If you fully fund your self directed retirement account it amounts to about the same thing. It may be the poster's retirement account as he never mentioned what type of account he was subscribing for.
Plus, the poster mentioned that it was nice to invest up to $500 per month. If my memory serves me, Wasatch offered a similar option when it offered the International Opportunities fund years ago.
One of my retirement accounts is BRUSX.