Item 5 – Fees and Compensation
Mutual Funds: Grandeur Peak Global receives fees from the Grandeur Peak Funds
based on the average daily net assets under management in each Fund as follows:
Fund Name Annual Fee Rate
Emerging Markets Opportunities Fund 1.35%*
Global Contrarian Fund 1.00%
Global Explorer Fund 0.80%
Global Micro Cap Fund 1.50%
Global Opportunities Fund 1.25%*
Global Reach Fund 1.10%
Global Stalwarts Fund 0.80%
International Opportunities Fund 1.25%*
International Stalwarts Funds 0.80%
US Stalwarts Fund 0.75%
*Through at least September 1, 2026, thirty-five basis points (0.35%) of the fees are waived on
assets in excess of $400 million for the Emerging Markets Opportunities Fund and twenty-five
basis points (0.25%) of the fees are waived on assets in excess of $500 million for the Global
Opportunities and International Opportunities Funds.
The fees received by Grandeur Peak Global as a service provider to the Grandeur Peak
Funds, as well as fees paid to other service providers by the Grandeur Peak Funds (e.g.
custody, administration, transfer agent, accounting, legal, etc.), are described in detail in
the registration statement and/or financial filings of those funds. The fees are accrued
on a daily basis and deducted directly from the Grandeur Peak Funds. They are paid to
the advisor on a monthly basis. Extraordinary expenses, if any, are also borne by
Grandeur Peak Funds shareholders.
Some of the Grandeur Peak Funds have two share classes, an Investor class and an
Institutional class. Shareholders in the Investor share class pay a 12b-1 fee at an
annual rate of 0.25% of average daily net assets. Such fee is paid to the Grandeur Peak
Funds’ distributor, Northern Lights Distributors, LLC (“NLD”). NLD is not affiliated with
Grandeur Peak Global. NLD uses these fees to pay for distribution and shareholder
services, such as compensation to broker-dealers selling Fund shares. There is no 12b-
1 fee on the Institutional class of shares.
The Grandeur Peak Funds incur brokerage, foreign exchange, custodial, and
administrative expenses separate from the fees described above. Item 12 provides
additional detail of our brokerage practices. Individual shareholders may also be
charged wire fees, returned check fees, short-term redemption fees, and other
shareholder fees.
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Private Investment Funds (“LPs”): The Grandeur Peak LPs are private investment
funds managed by Grandeur Peak Global in the Global Opportunities and International
Stalwarts investment strategies. The management fee is paid monthly by the limited
partners based on assets under management of each limited partner. The fee is
deducted from each limited partner’s capital account at the rates shown below:
• Global Opportunities: an annual rate of 1.25% on the first $200 million in collective
assets, and 1.05% on collective assets above $200 million.
• International Stalwarts: an annual rate of 0.85%.
This fee covers the Grandeur Peak Global investment advisory fee as well as normal
custody, administration, legal, tax, and audit expenses for each Grandeur Peak LP.
There is no negotiation of fees, or side letters. Seed investors in the Grandeur Peak LP
in the International Stalwarts strategy were given a five basis point (0.05%) reduction in
fee.
The Grandeur Peak LPs incur brokerage and foreign exchange costs separate from
these fees. Item 12 provides additional detail of our brokerage practices. Extraordinary
expenses are borne by the limited partners as an additional expense.
Separately Managed Accounts (“SMAs”): Grandeur Peak Global advises SMAs
based on the Global Stalwarts, International Stalwarts, International Opportunities, and
Global Reach strategies. The management fee is paid quarterly in arrears by each SMA
client based on assets under management, and is pro-rated for partial quarters.
Depending on the agreement between Grandeur Peak Global and its client, the fee may
be paid independently by the client or deducted directly from the client’s account.
The management fee for the International Opportunities offering is at an annual rate of
1.15% on the first $60M and 0.90% on assets above $60M.
The management fee for the Global Stalwarts and International Stalwarts offerings is at
an annual rate of 0.70%. Fee discounts on each of those strategies are available to
clients who meet either, or both, of the following requirements: a) five basis points
(0.05%) fee reduction for being the initial SMA client in a specific strategy, or investing
within six months of the initial SMA client in a specific strategy, and b) five basis points
(0.05%) fee reduction for accounts with a net capital contribution above $150M.
The management fee for the Global Reach offering is at an annual rate of 0.90%, with a
five basis points (0.05%) fee reduction for being an initial SMA client in the strategy.
The management fees described above are Grandeur Peak Global’s standard fees;
however, Grandeur Peak Global has agreed to performance fee structures with certain
SMA clients. These clients are large institutions who have invested significant assets
(generally more than $150mm each) in their SMA accounts. The performance fees are
unique to each client and negotiated individually. In general, these arrangements
consist of a below‑market base management fee and a performance‑based fee that is
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