Wasatch Takes Added Steps to Restrict Cash Flows Into the Emerging Markets Small Cap Fund(May 24, 2013)
Salt Lake City, Utah, May 24, 2013 – Wasatch Advisors announced today that effective June 7th, with limited exceptions, investment purchases from existing shareholders of the Wasatch Emerging Markets Small Cap Fund will be restricted.
The Emerging Markets Small Cap Fund, which has been under a “soft-close” status since February 24, 2012, will no longer accept purchases from existing shareholders, except for shareholders who are invested directly through Wasatch Funds, through a retirement plan, or through certain financial advisors who have an existing relationship with Wasatch.
“When restricting cash flows into a fund with limited overall capacity, if at all possible we like to allow existing shareholders to make additional purchases,” said Gene Podsiadlo, Director of Mutual Funds at Wasatch. “There is some ebb and flow to a standard rate of redemptions for any mutual fund, and we try to strike a balance to allow financial advisors to maintain the integrity of their model portfolios.”
Roger Edgley, Director of International Research, also commented on the Fund’s purchase restrictions. “We’ve been very fortunate to have many loyal shareholders and significant cash flows into the Emerging Markets Small Cap Fund,” he said. “These added steps do not represent an absolute ‘hard close’ of the Fund. We simply want to do the right thing for shareholders and the ongoing performance of the Fund.”
Mr. Podsiadlo noted that the Wasatch Emerging Markets Small Cap Fund recently received a 2013 Lipper Award, which recognized consistently strong risk-adjusted performance relative to peers. The Fund was honored as #1 over both three years and five years ending December 31, 2012 among 308 and 219 emerging markets funds, respectively.
“We’re proud of the attractive risk-adjusted performance that the Emerging Markets Small Cap Fund has generated,” Mr. Podsiadlo said. “We’ll continue to consider reopening the Fund at a future time based on market conditions and our portfolio-management capacity at that time.”
Other funds managed by the Wasatch international team that are still open to all investors include the Wasatch Frontier Emerging Small Countries Fund, the Wasatch Emerging Markets Select Fund, the Wasatch International Growth Fund, the Wasatch International Opportunities Fund, the Wasatch Global Opportunities Fund and the Wasatch Emerging India Fund.
About Wasatch Funds®
The Wasatch Funds, a family of no-load mutual funds, had over $11 billion in assets under management as of April 30, 2013. The Wasatch Emerging Markets Small Cap Fund seeks to provide long-term growth of capital, and invests primarily in the equity securities of small companies tied economically to emerging markets.
About Wasatch Advisors®
Wasatch Advisors is the investment manager to the Wasatch Funds as well as separately managed institutional and individual portfolios. Wasatch Advisors pursues a disciplined approach to investing, focused on bottom-up, fundamental analysis to develop a deep understanding of the investment potential of individual companies. The portfolio managers employ a uniquely collaborative process to leverage the knowledge and skill of the entire Wasatch Advisors research team in making investment decisions. Wasatch Advisors is an employee-owned investment advisor founded in 1975 and headquartered in Salt Lake City, Utah. The firm had over $16 billion in assets under management as of April 30, 2013. Wasatch Advisors, Inc. is registered with the Securities and Exchange Commission under the Investment Advisers Act of 1940.
Jody Lowe: 414.322.9311 / email@example.com
Steve Rung: 801.415.5523 / firstname.lastname@example.org
RISKS AND DISCLOSURES:
The Lipper Fund Awards program honors funds that have excelled in delivering consistently strong risk-adjusted performance, relative to peers. Lipper designates award-winning funds in most individual classifications for the three-, five- and 10-year periods. Please visit the Awards for Excellence website for more details about the Lipper Fund Awards. Lipper Award designations are not intended to constitute investment advice or predict future results, and Lipper does not guarantee the accuracy of this information. In addition to periods of positive returns, the Wasatch Funds that received Lipper Awards have experienced some periods of negative returns during the award time frames. Past performance is not indicative of future results.
Mutual fund investing involves risks and loss of principal is possible. Investing in small 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, especially in emerging markets, entails special risks, such as unstable currencies, highly volatile securities markets and political and social instability, which are described in more detail in the prospectus.
An investor should consider investment objectives, risks, charges and expenses carefully before investing. To obtain a prospectus, containing this and other information, visit www.WasatchFunds.com or call 800.551.1700. Please read it carefully before investing.
Separately managed accounts and related investment advisory services are provided by Wasatch Advisors, Inc., a federally regulated investment advisor.
© 2013 Wasatch Funds. All rights reserved. Wasatch Funds are distributed by ALPS Distributors, Inc. (ADI). Gene Podsiadlo is a registered principal and Steve Rung is a registered representative of ADI. ADI is not affiliated with Wasatch Advisors, Inc.