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Grandeur Peak reopens some of its funds with restrictions

edited January 2019 in Fund Discussions
https://www.sec.gov/Archives/edgar/data/915802/000139834419000618/fp0038543_497.htm

497 1 fp0038543_497.htm


FINANCIAL INVESTORS TRUST

SUPPLEMENT DATED JANUARY 14, 2019

TO THE SUMMARY PROSPECTUSES AND PROSPECTUS FOR
THE GRANDEUR PEAK EMERGING MARKETS OPPORTUNITIES FUND,
GRANDEUR PEAK GLOBAL OPPORTUNITIES FUND,
GRANDEUR PEAK INTERNATIONAL OPPORTUNITIES FUND AND
GRANDEUR PEAK GLOBAL REACH FUND
(EACH A “FUND,” AND TOGETHER, THE “FUNDS”)
DATED AUGUST 31, 2018

Effective immediately, the Grandeur Peak Global Opportunities Fund, Grandeur Peak International Opportunities Fund, and Grandeur Peak Global Reach Fund will re-open to existing shareholders and to new shareholders who purchase directly from Grandeur Peak Funds. Financial advisors and retirement plans with clients in one of these Funds will be able to invest in the Fund for both existing as well as new clients.

In addition, effective immediately, the Grandeur Peak Emerging Markets Opportunities Fund will re-open to new shareholders who purchase directly from Grandeur Peak Funds. This Fund is already open to existing shareholders.


INVESTORS SHOULD RETAIN THIS SUPPLEMENT
FOR FUTURE REFERENCE

Comments

  • edited January 2019
    Just received an email about the soft opening of funds:

    Grandeur Peak

    to Soft Open Several Funds

    January 14, 2019

    RE: Grandeur Peak will Soft Open the Global Opportunities, International Opportunities, Global Reach strategies on January 14, 2019.

    Dear Fellow Shareholders,

    With the recent global market selloff, we are re-opening the Global Opportunities, International Opportunities, and Global Reach Funds to existing shareholders as of today for those interested in taking advantage of the selloff to purchase additional shares. We, of course, have no idea whether the selloff will continue, and if so, for how long, but we think the current prices make this an interesting long-term entry point regardless. As Robert mentioned in his recent annual letter: “growing assets is not a priority for us, but with the recent market selloff and our investment style being somewhat out of favor this past year, it feels like an interesting time to be investing in our style and niche.”

    The soft re-opening is likely to be for a limited time, as we remain committed to keeping assets tightly limited in our small and micro-cap funds, but the time frame will depend on where the market goes from here and the level of additional investments received. Besides re-opening these Funds to existing shareholders, we will also allow new shareholders to purchase these Funds if they buy them directly from Grandeur Peak Funds (www.grandeurpeakglobal.com). Financial advisors and retirement plans with clients in one of these Funds will be able to invest in the Fund for both existing as well as new clients.

    The Emerging Markets Opportunities Fund, which is currently open only to existing shareholders, will now also be open to new shareholders purchasing the Fund directly from Grandeur Peak Funds.

    Outlined below is the revised status of the Grandeur Peak Funds as of today.

    Open to existing fund shareholders and new Direct shareholders:

    Emerging Markets Opportunities (GPEIX/GPEOX)
    Global Opportunities (GPGIX/GPGOX)
    Global Reach (GPRIX/GPROX)
    International Opportunities (GPIIX/GPIOX)

    Remain open to new and existing shareholders (no change in status):

    Global Stalwarts (GGSYX/GGSOX)
    International Stalwarts (GISYX/GISOX)

    Remains Hard Closed (no change in status):

    Global Micro Cap (GPMCX)

    Thank you for being an investor in the Grandeur Peak Funds. If you have any questions, don’t hesitate to reach out to me, Mark Siddoway, or Amy Johnson.

    Best Regards,


    Eric Huefner

    President & COO

    801-384-0003

    The objective of all Grandeur Peak Funds is long-term growth of capital.

    RISKS:

    Mutual fund investing involves risks and loss of principal is possible. Investing in small and micro cap funds will be more volatile and loss of principal could be greater than investing in large cap or more diversified funds.

    Investing in foreign securities entails special risks, such as currency fluctuations and political uncertainties, which are described in more detail in the prospectus. Investments in emerging markets are subject to the same risks as other foreign securities and may be subject to greater risks than investments in foreign countries with more established economies and securities markets.

    An investor should consider investment objectives, risks, charges, and expenses carefully before investing. To obtain a prospectus, containing this and other information, visit www.grandeurpeakglobal.com or call 1-855-377-PEAK (7325). Please read it carefully before investing.

    Grandeur Peak Funds will deduct a 2.00% redemption proceeds fee on Fund shares held 60 days or less. For more complete information including charges, risks, and expenses, read the prospectus carefully.

    Grandeur Peak Funds are distributed by ALPS Distributors, Inc (“ADI”). Eric Huefner, Mark Siddoway, and Amy Johnson are registered representatives of ADI.

    Robert’s Chairman Message 2018

    GPG000742 12/31/19


    OR-----

    link to GP website:

    https://www.grandeurpeakglobal.com/documents/grandeurpeakglobal-pr-20190114.pdf
  • Are these funds now off everyone's radar? Anyone have thoughts about adding to these funds or starting a position?
  • Bought in on Micro cap at the inception & still adding to it. Also hold two other funds & have added a few bucks to them.
    Derf
  • Considering adding to GPIOX, but just plotted out performance vs VMVFX and it looks like VMVFX did just as well in the good years, and outperformed massively last year. (Not apples to apples, since GPIOX is just international & smaller cap, but plugging GPGOX or any other GP fund into the charts makes no difference.)

    Still on the fence. Grandeur Peak has managers with a long track record of success at Wasatch.
  • @Derf: *on* my radar. I immediately bought shares of Global Reach (GPRIX).
  • @expatsp: Recently bought into VMVFX, on the drop. thanks for the info.
    Derf
  • I've held 3-4 of their funds since they opened the shop. It went swimmingly until it no longer did. When their funds were outpacing the pack the boys from Utah looked like geniuses, making company visits where few venture, and seeming to have a great team. The last two shareholder letters paint a very different picture; there's talk of mistakes, the need to move personnel around, a recognition that no matter how great a company might appear to fund management, the market is cruel. I still ponder what a "guardian portfolio manager" ought to be doing with respect to the rest of his team. I'm holding for now, but I previously dumped a significant percentage of my foreign (over)exposure.

    I think we all like honest and direct shareholder letters. The situation at GP reminds me of Bridgeway Funds, another small, independent company that had great numbers for several years. Bridegeway does good with its profits and seems to be a good place to work. John Montgomery writes fine analyses of his firm's fund performance. It really sounds good, but the performance of their small and micro-cap funds does not cut the mustard. Montgomery's first vehicle was BRUSX, a real winner for a long time. But in the last 10 years he's may behind his benchmark, losing an average of 3.58.% in the last 5 years, for example. Le marché est cruel.
  • I've been wondering about their performance, all the personnel rotations they make and their relationship with Rondure. They were way too early with their allocations to emerging markets and their letters make it sound like their industry "preferences" haven't been the best places to be in some cases. I'm considering whether those things just have to be expected from time to time because its their style or whether I should rethink my interest because they have more distractions than I'd prefer. I'm also not thrilled with their expense ratio but I like their willingness to control AUM tightly and I guess those things are related. I hold GPIOX, GPEOX, GPMCX and I'm considering starting a position in GPGOX.
  • So you're rethinking about your interest because of distractions, yet you're considering adding a fourth fund from the shop? How does that work exactly?
  • I've owned GPGOX from inception and I added EVGBX over a year ago when I could not add to GPGOX because of closure. Both are similar in structure in that they are both global small cap and they have similar returns. I don't plan any sells or additions to these funds. I still believe the are buy and hold management. I don't really understand the point of owning multiple Grandeur Peak Funds though. But to each his own.
  • JoJo26 said:

    So you're rethinking about your interest because of distractions, yet you're considering adding a fourth fund from the shop? How does that work exactly?

    I didn't actually say I'm rethinking my interest. I said I'm debating between justifying their performance and rethinking my interest. If I'm comfortable with their performance and expect good things in the future then adding makes sense to me. Global Opportunities is interesting for me because of exposure to their US picks but their performance doesn't suggest they're doing as well with their US picks or allocations as they are internationally.
  • MikeM said:

    I don't really understand the point of owning multiple Grandeur Peak Funds though. But to each his own.

    For me the thought was that they were very good with their small cap picks and I wanted them to address a good portion of my small cap exposure globally. I agree you can achieve that with Global Reach or Global Opportunities but originally, before I was expecting hard closes, I wanted to control the allocations. Without that ability I either have to use other funds, as you did, or I should just pick one of their global funds and let them control the allocations. So far I've done neither.
  • Got it LLJB. Thanks for the feedback.
  • If you believe the GMO 7-year forecasts, along with many of the other pundits, emerging markets is the place to be for the next 5-10 years relative to other asset classes; so I would expect the Grandeur Peak funds to do well since they are heavy on emerging markets. Only time will tell, I'm not unloading mine just yet!
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