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Grandeur Peak Global Micro Cap Fund subscription offering info
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.
$6,000/year seems kind of high for a micro cap allocation... Unless you have stockpiles of money that you don't know what to do with or like taking a lot of risk.
@TheShadow - I received a little less than my full requested allotment for a taxable account - so I assume I received the max they gave out unless they have some weird formula based on your current GP holdings. My allotment was $50k, which I was surprised to get that much.
@JoJo26 - it is a very small part of my portfolio, so it doesn't make it much more risky.
@JoJo26, I requested a very small amount and I have enough cash on hand to fund the additions for a while. I agree with you that I don't expect to end up making a big allocation to a micro cap fund so I'll add to my small request for a while and then stop if/when I feel like it's as much of my portfolio that I want to allocate.
I also called yesterday and the shares are in my account today. I experienced some confusion with setting up the AIP because the first person I talked to said I couldn't do it over the phone but when I called back later they were able to do it.
Haha hah, yes! @VintageFreak: I was pretty sure MFO was doing all the heavy lifting for Grandeur Peak. And 7,000 to 8,000 new readers per month (per the latest Commentary) adds up to a bunch of ppl waving checks. May they now remember to wave a few in MFO's direction.
As I understand it you aren't going to find it at any brokerage... it's only being offered directly from GP. The only exception I'm aware of is if an advisor uses a broker's platform for his business then they'll be able to buy the fund, based on their allocation, on that platform, but I don't believe it will ever show up as available to the general public at any broker.
What surprises me is that the fund says it's "open" on their website. I must be definitionally challenged when it comes to what that means, because $85 million of interest whiddled down to $25 million or so of allocations doesn't exactly sound like "open" to me.
As Bogle suggested recently, look at the dollars they're taking in, not just the percentage. 2% of $25 million means they're getting paid about $500,000 a year to run a global microcap fund, covering tiny obscure faraway companies. Sounds like a bargain to me. Plenty of people here think it's a bargain to pay 0.5% to invest in a domestic large cap fund with $10 billion, which means those managers are getting paid $50 million a year to cover highly liquid big companies where research is easily accessible.
I certainly don't think they're being overpaid for what they're doing, but the question is whether they can overcome a 2% drag to deliver results that make it worth investing in global micro cap stocks. I believe they can and I'll be happy that I invested, but 2% is a pretty big hole to climb out of year after year so it'll have to be evaluated after a few years when we get a sense of what they're able to deliver.
As I understand it you aren't going to find it at any brokerage... it's only being offered directly from GP. The only exception I'm aware of is if an advisor uses a broker's platform for his business then they'll be able to buy the fund, based on their allocation, on that platform, but I don't believe it will ever show up as available to the general public at any broker.
What surprises me is that the fund says it's "open" on their website. I must be definitionally challenged when it comes to what that means, because $85 million of interest whiddled down to $25 million or so of allocations doesn't exactly sound like "open" to me.
That's too bad. I do have some direct fund accounts, e.g. FAIRX, but I've made it a point to go through brokerages. I will just have to pass on this fund and maybe look into Global Stalwarts appropriateness for my portfolio,
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@JoJo26 - it is a very small part of my portfolio, so it doesn't make it much more risky.
Derf
I'm expecting a hard close before my wife finds out about the 500/mo.
October 30 was final day to fund your subscription allotment.
What surprises me is that the fund says it's "open" on their website. I must be definitionally challenged when it comes to what that means, because $85 million of interest whiddled down to $25 million or so of allocations doesn't exactly sound like "open" to me.