December 16, 2021
Please see below for today’s Press Release announcing the launch of the Grandeur Peak Global Explorer Fund (GPGEX) on Thursday, December 16, 2021.
The Global Explorer Fund will only be available in one share class (Institutional), with a minimum investment of just $1,000 ($100 for minors)* in order to make it broadly accessible to all investors. The Fund should be available through most of our existing channel relationships (Schwab, TD Ameritrade, Pershing, Fidelity, etc.) and it is of course available directly from Grandeur Peak Funds. If you have difficulty purchasing the Fund, please let us know and we will work with you to try to get it listed on your platform.
To learn more about this new fund, call any of us on the client team (contacts below) or our Investor Services team at 1-855-377-7325; Additional information will also be posted to our website: www.grandeurpeakglobal.com.
Mark Siddoway, CFA, CAIA, MBA
Head of Client Relations
Todd Matheny, CAIA
Director of Client Relations
Amy Johnson, MBA, CFP®
Sr. Manager, Client Relations
*Third-party platforms may impose different minimum requirements.
Dear Fellow Shareholders,
We are pleased to announce the launch of the Grandeur Peak Global Explorer Fund (GPGEX). The Fund will invest in what the firm believes are the most interesting equity investments around the world. The holdings will primarily be micro to mid-cap companies.
The new fund is a sister fund to the existing Grandeur Peak Global Reach Fund (GPRIX). The two funds share a similar mandate, but they approach portfolio management from a different angle. The Global Reach Fund (launched in 2013) is managed collaboratively by the firm’s five industry teams/portfolio managers, plus a guardian portfolio manager. Similarly, the new Global Explorer Fund will be managed by the firm’s seven geographic region teams/portfolio managers, plus a guardian portfolio manager.
Said Blake Walker, CEO, “In our quest to cover the globe, members of our research team wear multiple hats – some combination of an industry hat, a geography hat, and a fund hat. We long ago divided the world up into industries (5) and geographic regions (7) and gave analysts the charge to find the most interesting companies in their assigned space. The beauty of viewing the world through these two different lenses is that we have at least two people looking at every company, namely the relevant industry analyst and geography analyst. We have found it to be a powerful ‘multiple minds’ tool.”
Juliette Douglas, a geography portfolio manager, and the portfolio manager who will coordinate the Global Explorer team’s efforts, continued, “In hindsight, it could have made sense to launch the Global Explorer at the same time as Global Reach, but candidly we weren’t staffed or ready to do so eight years ago. Today it’s an easy extension for our team and the geographic paper portfolio we have managed for some time. We expect Reach and Explorer will look fairly similar given our collaborative approach, but we also believe there will be a very real benefit in putting our geography PMs at the helm of their own fund. Those benefits will play out in the Global Explorer Fund and also radiate through the rest of the Grandeur Peak Funds. The geography teams are thrilled at this opportunity.”
Grandeur Peak has from day one shown a very strong commitment to managing capacity at a firm level, and closing funds early. With many of the Grandeur Peak Funds currently closed, Todd Matheny, Director of Client Relations, commented on the capacity of the new Fund: “With the Global Explorer Fund focused on our more capacity-constrained micro to mid-cap space, we plan to soft close the Fund around $35M in AUM. We are excited about this Fund, and the strategic value it adds across our entire family of funds, but we intend to close it very small to ensure all of our funds retain the investment flexibility they need to remain focused on delivering performance for our clients.”
Purchase went thur per recent phone call.
FWIIW, I own only GUSYX at present. Did own others in the past. Many of the GP funds had double digit % distributions this year, but my fund is under 3%, a holiday gift of sorts.
FWIW. I've owned GPGOX since inception and have been very happy with it. For many years it was my only SC investment.
Can anyone with more than a couple Grandeur Peak funds chime in as to why? Maybe it is beneficial to own multiple, but why?
Sometimes smaller AUM is to your advantage . I dislike making a buy ,watching it rise , only to be able to get out with a few bucks of profit after a stead decline !!
HOT money , not for me, Derf
Now I'm note stating this is going to happen every time, but more than one would think.
I hope this answers your question, Derf
For example, compare USNQX and NASDX. While both are based on the Nasdaq 100 benchmark, why aren't both funds performing the same (fund expenses are slightly different from each other)? Currently, USNQX has a lower expense ratio (.44%) than NASDX's expense ratio (.50%) but NASDX has a better YTD return than USNQX (from Google Finance). Years ago, NASDX performed better than USNQX. Then for several years, USNQX performed better. For the last year or two, NASDX has performed better than USNQX. Same can be said for S&P 500 funds (fund expenses are slightly different) as to why aren't they performing more in synch while utilizing the same benchmark
Second, Wasatch and GP have similar tendencies in closing their funds to keep them nimble. Since the GP managers learned Wasatch's management practices, they are probably being used similarly in GP's practices. I would hate to miss out on a fund that is closed for 5-10 years waiting for it to re-open.
Disclosure: I own the Global Micro Cap (in taxable and non-taxable accounts) and Contrarian funds, Global & International Opportunities funds, Emerging Opportunities, and Global & International Stalwarts. Thinking about a position in the US Stalwarts Fund.
M* chart shows GUSYX has lost 11.65% in the last one month, giving a year to date total return of 16.2%. GPGEX, a fifth global fund from the same shop, evidently is a sister fund to GPRIX (Global Reach), which has lost about 8% in the past one month. GUSYX and GPRIX occupy the same style box. Traditionally, at the beginning of an economic cycle, small-mid caps have done well but late cycle usually has not been so kind to them.
Three of their existing Global funds have similar performance - Global Contrarian fund looks decidedly different.
I own both the international (GISYX) and US (GUSYX) stalwart funds. I am sure GPRIX is not the same as the Stalwart funds (M* shows materially different P/E ratios notwithstanding the same style box) but I will sit GPGEX out. If I want more of a similar investing style, given I already have enough GP, I might checkout Wasatch.
M* shows all the Global funds open to new investors and GPRIX has $400+M in AUM.
Long term holds for me.
I guess what I'm saying is that the appeal of Global Reach is its holistic approach of putting all of the firm's best ideas into it, having a truly singular view of money management instead of slicing and dicing the bread too thin in ten different directions. In the really old days of money management most active managers only ran one or maybe two funds. In fact, some were employed directly by the fund instead of contracting out to a separate money management firm. (See John Bogle's "two masters" essays.) All of the manager's best ideas went into their one fund, and they ran it to the best of their entire staff's abilities. They wouldn't act as though, "Oh we have a great micro-cap stock idea, but you know what we're going to leave it out of this fund because well you only get the second-tier mid-cap ideas we have while the other fund is gated off, and you can't access it."
+19.2 for 5 years " "
GPROX -6% For 3 months as of 12/16
+18.4 for 5 years
Looking to buy more on the dip after distributions