With the current market volatility, we feel it is valuable to share the recent message directly from one of our most respected investment teams, Grandeur Peak. They also happen to be one of our largest holdings.
May 16, 2022
Dear Fellow Shareholders,
With the market sell-off, we’ve experienced so far in 2022 and what appears to be a particular assault on small-cap and growth stocks, we are intrigued by this market entry point relative to the long-term outlook for our companies. As we look to put more of our own personal assets and the firm’s balance sheet into the Grandeur Peak Funds, we want to give our clients the same flexibility to do so if you like. As such, all of our closed funds are re-opening to existing shareholders, effective today.
We believe our holdings have generally had a good quarterly earnings season and enjoy strong balance sheets. We recognize the possibility of a recession, both here and elsewhere around the world, and continue to believe that investing in high-quality companies with strong balance sheets puts them in a uniquely strong position to weather a storm better than others and take market share during a downturn. It doesn’t make them immune to tougher times, but we believe such companies are best suited to adjust to varying conditions and to be successful over the long term. Meanwhile, from our perspective, current valuations are as enticing as we’ve seen in years, making the long-term outlook compelling.
We are so grateful for you and the stability of our entire client base. So far in 2022 (through 4/30), net flows in the Grandeur Peak Funds have been flat (+4M, to be precise). What a nice advantage this provides us, allowing us to stay focused on the portfolios and the opportunities the sell-off is presenting, knowing that our clients take the same long-term view. Thank you.
Here is an update on Fund status as of today:
Emerging Markets Opportunities (GPEIX/GPEOX)
Open to Existing Clients
Global Opportunities (GPGIX/GPGOX)
Global Micro Cap (GPMCX)
Global Reach (GPRIX/GPROX)
International Opportunities (GPIIX/GPIOX)
International Stalwarts (GISYX/GISOX)
Open to All InvestorsGlobal Contrarian (GPGCX)
Global Explorer (GPGEX)
Global Stalwarts (GGSYX/GGSOX)
US Stalwarts (GUSYX)
Thank you for your continued trust. If you have any questions, don’t hesitate to reach out to me or any member of our team.
The objective of all Grandeur Peak Funds is long-term growth of capital.
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 information including charges, risks, and expenses, read the prospectus carefully.
Grandeur Peak Funds are distributed by ALPS Distributors, Inc.("ADI"). Grandeur Peak Global Advisors is not affiliated with ADI. Eric Huefner is a registered representative of ADI.