Rainier International Small Cap Equity Fund preps for 2012 launch

By Toni Weeks

San Diego, Dec. 23 - Rainier Investment Management Mutual Funds announced plans to launch a new fund that will invest in small-capitalization companies that have their primary operations outside of the United States.

According to an N-1A filing with the Securities and Exchange Commission, the Rainier International Small Cap Equity Fund will seek long-term capital appreciation and intends to invest at least 80% of its net assets, plus any borrowings for investment purposes, in equity securities of international companies with market capitalizations of $5 billion or less at the time of purchase.

The fund will normally invest at least 40% of its net assets in foreign securities, including American Depositary Receipts, Global Depositary Receipts, International Depositary Receipts, dollar-denominated foreign securities, securities purchased on foreign exchanges and foreign currencies.

Although the fund intends to invest in at least three foreign countries at any time, it will generally not invest more than 50% of its net assets in issuers located in emerging markets. Up to 10% of the fund's assets may be held in cash or cash equivalents. The portfolio will generally consist of 60 to 120 securities.

Henrik Strabo will serve as portfolio manager. Strabo joined Rainer in August 2011. Prior to that, he served as managing director of Global Emerging Markets at Rogge Capital Management from 2010 to 2011, chief investment officer and portfolio manager at Clay Finlay LLC from 2006 to 2009 and as an equity analyst, portfolio manager and chief investment officer of International Equities at American Century Investments from 1993 to 2005.

The fund will offer only an institutional share class. The minimum initial investment is $100,000, with subsequent investments of $1,000.

The shares will incur no sales charge. A management fee of 1% of the value of the investment will apply. The fund's investment adviser, Seattle-based Rainier Investment Management, Inc., has agreed, until July 31, 2013, to reduce its advisory fee and /or reimburse expenses of the fund in order to hold total annual operating expenses to 1.25% of the fund's average daily net assets, excluding interest, taxes, commissions, acquired fund fees and extraordinary expenses.

The fund has not yet been assigned a ticker symbol.

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