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Grandeur Peak 3Q Commentary

Surprised to see less than 14% of Grandeur Peak shareholders are Individuals/Retail investors...whereas nearly 80% are either institutional or advisors. Is this common?


  • @Roy, Thanks for posting this. I'm not a shareholder but it's always interesting to read other reports.

    GP has built themselves quite the reputation amongst the financial sphere so I am not surprised they are the attraction of advisors. They don't advertise and so most if not all retail investors have never heard of them. Also, their funds have opened and closed in relatively short times.

    In reading, I was struck by the top five stocks on page six. All are from the Asia region. That shows how much growth is still apparent over here despite the slowdown and global malaise creeping in.

    Thanks once again.
  • You are welcome John. My wife and I have a strong position in Global Reach. Doubtful that Grandeur Peak funds are in many workplace retirement accounts which would also limit individual accounts.
  • edited October 2014
    Howdy @Roy and @JohnChisum

    The noted distribution of shareholders:

    Our client base is now comprised of:
    • Institutional Advisors/Consultants 43%
    • Institutions 19%
    • Retail Advisors 17%
    • Individuals/Retail Shareholders 13.5%
    • Family Offices 7.5%

    Our house holds non-Fidelity funds through our brokerage accounts at Fido, which includes GPROX.

    There are others at MFO who have similar holdings via brokerage accounts.

    Wondering where these accounts fit into the above list complied by Grandeur? Are we in the Individuals/Retail Shareholders category?

    I'm also in agreement that most retail/individual investors are not aware of Grandeur.

    Take care,

  • I think Grandeur Peak could be considered a boutique fund operation.
  • If this study can be believed, 90% of mutual funds assets are held by households and 10% is institutional. But this varies widely from one fund to another.

  • @00BY, thanks for posting the very interesting study!! The numbers may be a little surprising but not too much. When I think about the SAI's I've looked through, its not very often I see a pension plan or endowment on the list of 5% owners. It's almost always the Schwab's, Fidelity's, TD Ameritrade's, E*TRADE's and Vanguard's that own a very large portion of fund assets and in most cases they would represent households through company sponsored 401K plans, IRAs or individual accounts. I do guess, however, that Grandeur Peak's breakdown is not reflective of the same split. It could be that the 19% Institutions number are non-households according to the study. It isn't totally clear, though, whether these numbers are based on where they get their assets or whether its the number of investors regardless of the assets they invest.

    I did discover a few interesting facts based on this study though. I'm a little shocked that 53% of people who own mutual funds are not college graduates (47% are). I know that 50 or 60 years ago a college education wasn't as common as today, but it strikes me as a shocking number.

    It seems a little ironic that 47% invest in mutual funds to reduce income taxes. I wasn't actually aware that mutual funds reduced taxes. Maybe its just a misuse of the words, since they may consider the mutual funds held in a 401K plan or IRA as reducing their taxes, when in fact its the IRA or 401K that affects taxes, not the mutual fund. Otherwise, I think the only way a mutual fund lowers taxes is by having a lower return or higher expenses than if you invested in some other way, and neither of those seems like a good thing.

    I also found out my wife belongs to a different generation that I do, barely, but that explains a lot! :) I knew she was young, but I didn't realize she was that young.
  • Great info... I was quite surprised to find out that I belong to the "Silent Generation". Not sure that I fit there too well...
  • I thought it was the Greatest Generation? Never heard the term Silent Generation until now.

    I'll stick with the former. For what they went thru they deserve it.
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