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News & Insights
Oct 20 2023
Quarterly Letters

3Q23 Quarterly Letter

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Market Commentary
Portfolio Commentary
Notes from the Road
Business Update
Total Returns | As of September 30, 2023

Market Commentary

Key Takeaways

  • Interest rates are near a two-decade high, and the market is forecasting rates to remain high for an extended period.
  • Global debt levels have reached a record high, increasing over $50 trillion in the past three years alone.
  • High-quality companies (i.e., companies with high Return On Assets (ROA)[1] and low leverage) have outperformed the broader market consistently over time.
  • Historically, the outperformance of high-quality companies over the broader market has been prominent during periods when interest rates are relatively high.
  • The Grandeur portfolios have significantly better fundamentals than their respective benchmarks.
  • We anticipate the strength of our relative positioning will result in an extended period of strong relative returns.

The Burger Bill Comes Due

E.C. Segar’s early 20th century comic strip, Popeye the Sailor, features a character named J. Wellington Wimpy. Wimpy, as he is known, is a stout man with a serious hamburger addiction and no money. As a result, he is commonly found trying to entice others into buying him a hamburger today for payment on Tuesday. Fortunately for Wimpy, “Tuesday”, or the day of repayment never comes thus allowing him to run up what seems like an endless burger tab.

Segar leaves readers with many questions when it comes to Wimpy and his “pull forward” burger consumption tactics. For example, what are the financing terms of Wimpy’s arrangement? Surely, his cost of burger capital isn’t free. His credit worthiness must be abysmal. How do his lenders get comfortable with extending his credit line to consume more burgers when he already has a lot of burger leverage on his balance sheet? We must assume that at some point Wimpy’s burger bill will come due. When it does, it won’t be pretty for him or his creditors. He will have to do a burger detox and find another, less expensive, source of sustenance. Perhaps a steady diet of spinach is in Wimpy’s future?

Over the past 15 years, many of the world’s largest central banks have implemented monetary policies that have kept the cost of capital exceptionally low. These policies have incentivized governments, corporations, and households to employ a “buy now-pay later” consumption strategy that would give even someone like Wimpy great pause. As of June 30, 2023, the Institute of International Finance reported that total global debt was $307 trillion dollars, an increase of 19.36% or $53 trillion dollars in the past 3 years alone[2].

Figure 1

Low interest rates combined with the aggressive stimulus pumped into the global economy by many fiscal and monetary policy makers at the onset of Covid resulted in a meaningful inflation increase that did not recede nearly as much as was initially expected. This prompted policy makers to rapidly increase interest rates to stem the inflationary pressures. Interest rates have now reached two-decade highs in many economies[3].

Figure 2

While inflationary pressures have abated somewhat, inflation continues to trend well above central bank targets. As a result, consensus expectations are that short-term lending rates will stay elevated for an extended period. If they do remain high, it will present serious long-term problems for borrowers at every level that have large outstanding “burger bills”. When their bills come due, and some already have, the consequences will likely be much more severe than Wimpy’s burger detox.

Historically, high-quality companies, those with attributes such as high return on assets (ROA) and lower leverage, have significantly outperformed in markets where the cost of capital is high. Why? Because companies with high leverage experience a material increase in debt service costs which erodes company earnings. Furthermore, companies with lower ROAs that finance growth with debt are less incentivized to do so, which can also negatively impact earnings growth potential and ultimately stock price performance.

As illustrated in Figure 3 below, high-quality stocks, represented by the ACWI Quality index, have consistently outperformed the broad market over time.  However, the level of outperformance has been three times higher during periods when the cost of capital is high, defined as periods where the Fed Fund’s rate exceeds 2.5%[4].

Figure 3

As seen in Figure 4, when interest rates are low, high-quality stocks realize or “capture” an average of 95% of the broader market’s monthly return when the return is positive. When the broader market’s monthly return is negative, high-quality stocks capture an average of 87% of the return. The differential between the upside capture percentage and the downside capture percentage, or the spread, is favorable at +8% when interest rates are low.

On the other hand, when interest rates are high, high-quality stocks capture an average of 114% of the market’s monthly return when it is positive and 88% when it is negative. So, the spread increases to +26%, a much more favorable outcome, with high-quality stocks capturing +19% more market upside without sacrificing any real downside protection[5].

Figure 4

The sizable increase observed historically in the upside/downside capture spread when interest rates are high suggests that balance sheet fundamentals matter much more in high-rate environments. During these periods, it is not nearly as easy for companies with lower returns on assets, which rely on debt financing, to grow their earnings. Put differently, when rates are high, the size of a company’s burger tab and its reliance on debt to sustain its burger habit (i.e., growth plan) are much more significant factors in its future success. As a result, lower quality companies can’t keep up with more fundamentally stable, high-quality companies and high-quality companies tend to outperform.  

As the market adapts to a “higher for longer” interest rate environment, where the cost of borrowed capital is no longer cheap, there will be much more performance dispersion across markets.  Sound fundamentals will likely be a more significant determinant of success than they have been in the “lower for longer” interest rate world we have invested in over most of the past 15 years. As a result, we believe actively managed, fundamentally driven investment strategies, such as the Grandeur Peak portfolios, should have a clear advantage over strategies that disregard the fundamentals.

Portfolio Commentary

Key Q3 Takeaways

  • Performance: Most of our portfolios underperformed on the quarter in price terms, but captured earnings growth continues to be relatively strong.
    • Health Care – while Healthcare related stocks were the biggest underperformer within the index, our selection was favorable and additive to performance.
    • Our Industrials exposure underperformed and detracted across most funds. Specifically, our energy transition and European industrial holding companies lagged.
    • Energy was the best performing sector in the benchmark. Our strategic underweight was a drag on performance.
    • The US Dollar strengthened versus most currencies, which was a meaningful performance headwind for global strategies given our US market underweight.
    • Health Care-related stocks were the biggest underperformers within the Index; however, our selections were favorable and additive to performance.
  • Quality: We believe that our portfolios are fundamentally sound, on an absolute and relative basis.
    • Technical market turbulence continues to offer us opportunities to gain exposure to high-quality companies that have historically been too expensive to own.
  • Value: Despite disappointing 2022 and YTD performance, our portfolios’ captured earnings growth continues to be resilient.
  • Momentum: Business momentum within our portfolios has slowed but not as much as the broader market and global economy.
    • Our portfolios’ earnings growth has been positive year-to-date, in contrast to the MSCI ACWI Small Index, where earnings have fallen 10% over the same period.
    • We expect momentum for our portfolio companies to pick up in 2024.
  • Given our high-quality bias, we are positioned for a return to quality growth being rewarded, but we also believe our portfolios should perform well on a relative basis should we realize a pronounced slowdown in global economic growth.


As illustrated in Figure 5, our portfolios consistently display stronger fundamentals than their respective benchmarks, namely higher ROA and lower debt. Last year’s sell-off in quality stocks allowed us to upgrade our portfolios’ overall quality. This has resulted in a more concentrated portfolio, with increased exposure to higher conviction names. In addition, we have been able to add some stocks on our “Watch-A” list to the portfolio. These are stocks with very high quality that we felt were previously too expensive to buy.

Figure 5

Global Reach10.00%53%
Index Variance5.10%-40%
Global Explorer9.90%52%
Index Variance5.00%-41%
Global Opportunities11.50%56%
Index Variance6.60%-37%
International Opportunities12.20%50%
Index Variance5.80%-41%
Emerging Markets Opportunities12.30%50%
Index Variance4.40%-36%
Global Micro Cap10.10%28%
Index Variance5.20%-65%
Global Stalwarts10.70%60%
Index Variance4.00%-37%
International Stalwarts12.80%56%
Index Variance6.30%-30%
US Stalwarts7.40%61%
Index Variance0.50%-41%
Global Contrarian9.60%46%
Index Variance4.90%-54%

While quality is paramount throughout our portfolio, it may prove to be a more important risk factor in some sectors versus others given the current economic climate. For example, within the Financial sector broadly, we see a credit maturity wall coming, which could be painful for many small businesses and commercial real estate companies. We believe that numerous businesses previously had access to capital that they were likely not qualified for.  Stricter lending standards and/or significantly higher borrowing costs will likely inflict pain on lower-quality companies.

However, in our Financials portfolio, we are cautiously optimistic. We have shifted more risk-off over the course of the year, and we feel good about positioning for an economic slow-down. We’re avoiding investments with significant balance sheet risk, and we’re being careful to not overpay for our more growthy companies. Also, we believe our exposure is balanced enough so that we’ll keep up if the environment turns out to be better than expected.

The Consumer sector is another area where we remain very focused on owning high-quality names. Continued rate hikes and the combination of savings and aid programs drying up in the US and around the world have put many consumer businesses in more vulnerable positions.

In building out the Consumer tranche within our portfolios, we have been very focused on understanding the sensitivities that each of our companies has to various potential economic environments, factoring in inflation, rates, consumer appetites, etc.  With that understanding, we have tried to strike the right balance of exposure across Consumer Staple and Discretionary names so that our portfolio will hold up amid various economic outcomes. Furthermore, we currently feel that its more defensive to own more Consumer names outside of the US vs. inside. The basis for this view is that we believe the worst parts of the late economic cycle are mostly behind international markets, while things feel more uncertain in the US. Regardless of shorter-term positioning, we have confidence in our Consumer portfolio due to the attractive valuations and captured earnings growth in our companies.


As shown in Figure 6, small cap stocks continue to trade at a price-earnings multiple[6] that is ~28% less that its long-term historical average (27-28x). The modest increase we have seen in the MSCI ACWI Small Cap Index multiple from the end of 2022, from 17.4x to 19.9x, is the result of a -10.13% decline in the index’s earnings relative to only a -0.26% drop in its price.

Figure 6

The depressed multiples and market turbulence continue to allow us to find stocks that offer attractive relative value. For example, our team is currently very excited about opportunities to invest in the Japanese market, where small cap growth stocks have underperformed on the year. As a result, the country has become a major focus of screening and travel for our team. Over the last year, we’ve had more company touches in Japan than any other country except for the US. We feel that captured earnings growth there has not been properly rewarded as it should, but that it’s only a matter of time before it will be.

On another note, we had another take-out in our Health Care holdings in Q3, which has happened on several occasions this year and reaffirms our belief that valuations are at attractive levels. As a result of low multiples, we think we are likely to see more merger and acquisition (M&A) activity over the near term. Take-outs have somewhat reduced our Health Care overweight, but we’re seeing attractive options to replace those investments.

Some of the attractive investment opportunities we see within Health Care have come as a result of volatility stemming from impact GLP-1 drugs (e.g., Ozempic), Large swaths of the sector, particularly those areas tied to obesity and Type-2 diabetes, have been significantly impacted. It will take years to grasp the full extent to which these drugs may reshape the industry, but the current uncertainty is producing large stock price fluctuations. We believe that much of our exposure will likely benefit from the shifting dynamics within Health Care.


As previously noted, business momentum has slowed throughout the market this year, with earnings turning meaningfully negative year-to-date. We have seen the business momentum decline in our portfolio companies as well, however the slowdown has been much less pronounced. As illustrated in Figure 7, our portfolios continue to generate relatively strong, positive earnings growth amid slow market business momentum. Furthermore, we anticipate that momentum will pick back up in 2024 for our portfolio companies. As the momentum improves, we expect our portfolios to further distinguish their collective earnings strength.

Figure 7

One area within our portfolio where we have seen a significant decline in business momentum this year is in our Technology – Semiconductor names, which have detracted from performance. Business momentum within the space remains weak given excess inventories, but we believe we are getting close to an inflection point where things will turn favorably. In addition, we are starting to see some improvement in the monthly revenue numbers from some of our Taiwan-based semiconductor companies. While this is a welcome sign, the recovery has come quite a bit later than we initially expected.

Within Industrials, last quarter we wrote that while we had not seen a material change in fundamentals yet, we were expecting a slowdown. In anticipation of this, we trimmed our overall sector weight and reduced exposure to cyclical names. In Q3, our expectations were realized, as more companies than usual revised guidance down and/or missing earnings.

One area within our Industrials portfolio that had a difficult quarter was energy transition investments. We attribute this, at least partially, to trends of pushback against environmental, social, and governance (ESG) investing. Additionally, some governments have backed off the aggressive subsidies of the last few years, causing some uncertainty in the short term. Despite the volatility, we still feel good about what we own in this space over the long term. The US is forging ahead with its infrastructure goals, and we believe the theme isn’t going away. So, this feels more like a temporary setback on a lot of names that have great long-term tailwinds. Importantly, we own these companies because they are high-quality businesses, not because they check an ESG box.

Many companies within Industrials that were able to increase their prices over the last several years are now experiencing some margin compression off high-priced inventory while their pricing power weakens. While they have generally worked through much of their backlogs, new orders haven’t quite kept up. Purchasing Managers’ Index (PMI) numbers across the world are weakening, which is hurting investment and capital expenditure-driven companies. However, our focus on higher-quality names within the sector has allowed us to avoid much of the cyclical earnings downturn.

To summarize, within our Quality, Valuation, and Momentum (QVM) Framework, our current portfolios exhibit high Quality, attractive Valuation, and lower but relatively resilient Business Momentum. In an environment of heightened macroeconomic and geopolitical uncertainty, we believe we are positioned to mitigate downside risks should market conditions deteriorate further without giving up significant upside capture. As Business Momentum improves, we believe our portfolio companies will further strengthen their businesses and deliver attractive earnings growth. Furthermore, as favorable price momentum returns to the market, we believe our portfolios will be in position to reward shareholders for their patience.

Notes from the Road

Company Touch Tracker

This quarter our team engaged with 364 companies across the world, putting our total company touches at 1,152 through Q3, with a good start to Q4 as well. We are on track to have most company touches in a year since 2016.

This past quarter, analyst teams traveled domestically to Boston, New York, San Francisco, Illinois, Missouri, and Southern California. Internationally, team members traveled to the United Kingdom, the Nordics, Hong Kong, Indonesia, Brazil, Italy, and Greece. Here are some findings from our visit to Brazil.

Brazil Recap

Mark Madsen, Portfolio Manager – Global Contrarian, Tyler Glauser, Portfolio Manager – Global Reach, Lead Analyst – Consumer, and Karson Schrader, Lead Analyst – Financials, met with 26 companies in Sau Paulo, Brazil. In addition to meeting with several companies on our Owned list, they also visited every Watch A company in the country. Our Watch A names are what we consider to be high-quality companies we would like to own but are currently too expensive.

Here are some key thoughts from Mark Madsen about the visit:

Tyler, Karson, and I took another trip to Brazil this quarter as the market has experienced several favorable macro trends recently. 

Inflation has come down meaningfully to 5% after peaking out at 10.1% in 2021 and is expected to trend even lower in coming years. Also, the currency has been relatively stable and interest rates have come down from 13% to 9%. Many of the companies we met with were cautiously optimistic about the future.

The Brazilian equity market realized double digit declines in 2020 and 2021 but has bounced back in 2022 and YTD in 2023. So, while we see signs of positive price momentum, net returns are flat to slightly negative over the past four years.

Most companies we met with have business plans that are very dependent on the Brazilian economy for success. Few were focused on exports or expanding sales efforts outside of the country.

Of the companies we visited, those that scored the highest were mostly service-oriented (e.g., investment management, payment processing, internet, etc.). A third of our visits felt like easy passes as we left – where neither the numbers nor the stories felt very compelling. The remaining two-thirds had a fairly balanced list of pluses and minuses, and we committed to follow them more closely in case the QVM profiles become more favorable.

It’s interesting to look at the differences and similarities between Brazil to India.  Both countries have young populations and have had issues with corruption. Brazil is smaller geographically and GDP growth is slower, but it has more natural resources than India. Also, valuations on the ground level in Brazil seem much more reasonable than what we currently see in India.

In sum, we came back from the trip with heightened confidence in the companies we own in our portfolios and better understanding and appreciation for some of our Watch A names. While there are some great high-quality companies in Brazil that have real growth potential, Brazil continues to be a wildcard in our minds because of the challenge in assessing the currency risk. Will the Brazilian Real continue to be stable, or will it revert to being a volatile currency that has the potential to depreciate meaningfully and eat up solid investment returns? If the Brazilian government can maintain a stable currency for an extended period, it may eventually allow us to lower the currency risk premium we demand for investing in the Brazilian market and make the country a much more attractive area of our investment opportunity set.

Business Update

This weekend, we have successfully completed the back-office provider transition for our mutual funds. As a reminder, the reorganization of the Funds were non-taxable transactions for federal income tax purposes. The transition did not impact the ownership of Grandeur Peak Global Advisors, the composition of our team or investment research process.

For direct shareholders with online access to your account, please take a minute to visit our website and create a new log in. Questions can be directed to our Investor Services team at 1-855-377-PEAK (7325), Monday-Friday, 7AM to 5 PM Mountain Time,

We are happy to welcome back Dane Nielson, who returns to full-time work after completing his MBA from Cambridge University in the United Kingdom. Dane continues his role as part of the Global Contrarian team and as a member of the Resource Rich geography team. We appreciate the additional insights and expertise he brings to the firm from his educational experience.

As always, please feel free to reach out any time with any questions, requests, or comments. We appreciate the opportunity to work on your behalf.


Todd Matheny, CAIA
Jesse Pricer, CFA
Amy Johnson, CFP®
The Grandeur Peak Client Team

Total Returns | As of September 30, 2023

Global Reach, Investor Class (GPROX)-4.48%0.85%9.85%-1.29%3.99%6.99%7.92%
Global Reach, Institutional Class (GPRIX)-4.36%1.05%10.10%-1.04%4.24%7.24%8.17%
MSCI ACWI Small Cap Index[i]-3.29%4.75%15.82%7.29%3.99%6.62%7.27%
MSCI ACWI IMI Index[ii]-3.30%9.82%20.77%7.38%6.61%7.93%8.29%
Global Explorer, Institutional Class (GPGEX)-4.79%0.70%9.26%n/an/an/a-16.91%
MSCI ACWI Small Cap Index-3.29%4.75%15.82%n/an/an/a-6.50%
MSCI ACWI IMI Index-3.30%9.82%20.77%n/an/an/a-4.56%
Global Opportunities, Investor Class (GPGOX)-6.32%0.62%11.26%0.13%5.27%7.33%10.42%
Global Opportunities, Institutional Class (GPGIX)-6.70%0.30%11.10%0.22%5.46%7.56%10.69%
MSCI ACWI Small Cap Index-3.29%4.75%15.82%7.29%3.99%6.62%8.83%
MSCI ACWI IMI Index-3.30%9.82%20.77%7.38%6.61%7.93%9.41%
Global Stalwarts, Investor Class (GGSOX)-5.78%-0.78%5.33%-4.40%2.48%n/a6.87%
Global Stalwarts, Institutional Class (GGSYX)-5.69%-0.56%5.66%-4.15%2.76%n/a7.15%
MSCI ACWI Mid Cap Index[iii]-3.56%3.99%16.24%5.68%4.37%n/a7.18%
MSCI ACWI Small Cap Index-3.29%4.75%15.82%7.29%3.99%n/a7.51%
Global Micro Cap, Institutional Class (GPMCX)-3.18%-0.81%11.64%-0.97%5.22%n/a7.63%
MSCI ACWI Small Cap Index-3.29%4.75%15.82%7.29%3.99%n/a7.10%
MSCI World Micro Cap Index[iv]-4.51%-2.65%7.28%2.87%1.36%n/a5.68%
Global Contrarian, Institutional Class (GPGCX)-0.07%8.41%18.91%11.85%n/an/a10.95%
MSCI ACWI Small Cap Value Index[v]-1.74%3.20%16.05%12.05%n/an/a5.84%
MSCI ACWI Small Cap Index-3.29%4.75%15.82%7.29%n/an/a5.90%
Intl Opportunities, Investor Class (GPIOX)-6.91%-2.82%8.81%-3.96%2.00%5.31%8.45%
Intl Opportunities, Institutional Class (GPIIX)-6.82%-2.79%9.26%-3.70%2.21%5.54%8.69%
MSCI ACWI ex-US Small Cap Index[vi]-1.58%5.48%19.60%4.49%3.03%4.76%6.28%
MSCI ACWI ex-US IMI Index[vii]-3.39%5.77%20.82%4.27%3.06%3.96%5.38%
Intl Stalwarts, Investor Class (GISOX)-7.53%-2.60%8.81%-4.08%2.79%n/a7.16%
Intl Stalwarts, Institutional Class (GISYX)-7.45%-2.39%9.06%-3.83%3.04%n/a7.42%
MSCI ACWI ex-US Mid Cap Index[viii]-2.10%6.07%21.35%3.10%1.91%n/a4.95%
MSCI ACWI ex-US Small Cap Index-1.58%5.48%19.60%4.49%3.03%n/a5.99%
EM Opportunities, Investor Class (GPEOX)-2.25%4.31%9.65%0.75%4.82%n/a4.44%
EM Opportunities, Institutional Class (GPEIX)-2.23%4.43%9.89%0.97%5.05%n/a4.67%
MSCI Emerging Markets SMID Cap Index[ix]0.87%9.20%20.52%7.41%4.56%n/a3.75%
MSCI Emerging Markets IMI Index[x]-1.99%3.73%13.69%0.11%1.67%n/a2.78%
US Stalwarts, Institutional Class (GUSYX)-4.38%2.73%3.60%-0.17%n/an/a15.29%
MSCI US Mid Cap Index[xi]-4.92%1.97%11.61%8.16%n/an/a19.40%
MSCI US Small Cap Index[xii]-4.88%4.02%12.36%9.91%n/an/a20.84%

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

The performance data quoted represents past performance. Current performance may be lower or higher than the data quoted above. Past performance is no guarantee of future results. The investment return and principal value of an investment will fluctuate so that investor’s shares, when redeemed, may be worth more or less than their original cost. For performance information current to the most recent month-end, please call 1-855-377-PEAK (7325).

 The Advisor may absorb certain Fund expenses, without which total return would have been lower. Net Expense Ratio reflect the expense waiver, if any, contractually agreed to through August 31, 2024. A 2% redemption fee will be deducted on fund shares held 60 days or less. Performance data does not reflect this redemption fee or taxes.

FundGrossNet GrossNet
Emerging Markets (GEPOX/GPEIX)1.75%1.75% 1.50%1.50%
Global Contrarian (GPGCX)   1.35%1.35%
Global Explorer (GPGEX)   3.45%1.25%
Global Micro Cap (GPMCX)   1.85%1.85%
Global Opportunities (GPGOX/GPGIX)1.60%1.54% 1.35%1.29%
Global Reach (GPROX/GPRIX)1.50%1.50% 1.25%1.25%
Global Stalwarts (GGSOX/GGSYX)1.19%1.19% 0.94%0.94%
International Opportunities (GPIOX/GPIIX)1.60%1.55% 1.35%1.30%
International Stalwarts (GISOX/GISYX)1.13%1.13% 0.88%0.88%
US Stalwarts (GUSYX)   0.90%0.90%

RISKS: 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. Diversification does not eliminate the risk of experiencing investment loss.

[1] Return on Assets (ROA) is a measure of how efficiently a company uses its assets to generate a profit and is calculated by dividing company’s net income by total assets.

[2] Institute of International Finance, Global Debt, 6/30/2023

[3] Bank for International Settlements, GDP Policy rate calculated using country/region central bank policy rates and multiplying by their share of GDP.

[4] MSCI, 6/30/94 – 9/30/23

[5] MSCI, 6/30/94 – 9/30/23

[6] A Price-Earnings (P/E) multiple is a ratio of current share price to earnings per share (EPS) and is a measure of relative valuation of a company’s shares.

[i] The MSCI ACWI Small Cap Index is designed to measure the equity market performance of small-cap companies across developed and emerging markets globally.

[ii] The MSCI ACWI IMI Index is designed to measure the equity market performance of large, mid, and small-cap companies across developed and emerging markets globally.

[iii] The MSCI ACWI Mid Cap is designed to measure the equity market performance of mid-cap companies across developed and emerging markets globally.

[iv] The MSCI World Micro Cap Index is designed to measure the equity market performance of micro-cap companies across developed markets globally.  It does not include emerging markets.

[v] The MSCI ACWI Small Cap Value is designed to measure the equity market performance of small cap companies exhibiting overall value-style characteristics across developed and emerging markets globally.

[vi] The MSCI ACWI ex USA Small Cap is designed to measure the equity market performance of small cap companies across developed and emerging markets globally, excluding the United States.

[vii] The MSCI ACWI ex USA IMI is designed to measure the equity market performance of large, mid, and small cap companies across developed and emerging markets globally, excluding the United States

[viii] The MSCI ACWI ex USA Mid Cap is designed to measure the equity market performance of mid cap companies across developed and emerging markets globally, excluding the United States.

[ix] The MSCI Emerging Markets SMID Cap Index is designed to measure the equity market performance of small and mid-cap companies across emerging markets.

[x] The MSCI Emerging Markets IMI index is designed to measure the equity market performance of large, mid, and small-cap companies across emerging markets.

[xi] The MSCI US Mid-Cap Index is designed to measure the performance of the mid cap segments of the US market.  With 340 constituents, the index covers approximately 15 percent of the free float-adjusted market capitalization in the US.

[xii] The MSCI US Small Cap Index is designed to measure the performance of the small cap segment of the US equity market.  With 1,781 constituents, the index represents approximately 14 percent of the free float-adjusted market capitalization in the US.

CFA® is a trademark owned by CFA Institute. The Chartered Financial Analyst (CFA) designation is issued by the CFA Institute. Candidates must meet one of the following prerequisites: undergraduate degree and 4 years of professional experience involving investment decision-making, or 4 years qualified work experience (full time, but not necessarily investment related). Candidates are then required to undertake extensive self-study programs (250 hours of study for each of the 3 levels) and pass examinations for all 3 levels.

Grandeur Peak Funds are distributed by Northern Lights Distributors, LLC (Member FINRA).  Eric Huefner, Todd Matheny, Jesse Pricer and Amy Johnson are registered representatives of ACA Foreside, which is not affiliated with Grandeur Peak Global Advisors or its affiliates. ©2023 Grandeur Peak Global Advisors, LLC.