- Vertex Enhanced Income Fund -
Second Quarter Report 2019
This June, Matthew Wood, lead portfolio manager and founding partner of Vertex One Asset Management, announced his retirement. For over twenty years, Matt has shared with us his passion for investing, and his vision and values have helped define the culture of Vertex One. Please join us in wishing Matt the very best as he moves into the next phase of his life.
Since launching Vertex One in 1998, we have remained dedicated to providing our investors with superior investment and relationship management. As part of this and our commitment to deliver improved investor outcomes, we took a diligent and thoughtful approach to our value and income manager succession planning. After a rigorous search process, we found our ideal partner on the same city block as us here in Vancouver, and we are excited to announce our portfolio advisor agreement with PenderFund Capital Management (Pender).
Effective July 1st, 2019, Pender became the portfolio advisor for the Vertex Enhanced Income Fund, with Geoff Castle, CFA and David Barr, CFA serving as the primary portfolio managers for the fund.
For the past few years, we have been impressed by Pender’s steadfast approach to income investing, as well as their impressive history. Their experienced investment team brings an established, dynamic approach to active management, along with a firm culture that is strongly aligned with the values and investment philosophy of Vertex One.
On June 26th, we sat down with Geoff Castle and David Barr for an introduction to their investment philosophy and to discuss the future direction of the Vertex Enhanced Income Fund. While we encourage you to listen to the webcast by following the link below, we have also highlighted a few key talking points here:
- An introduction to PenderFund Capital Management and why we selected them as portfolio advisor for the Vertex Enhanced Income Fund.
- Geoff Castle and David Barr explain their investment process.
- The future of the credit markets and interest rates.
A Note from PenderFund Capital Management.
We want to thank Vertex One for the opportunity to act as portfolio advisor for the Vertex Enhanced Income Fund. Looking forward our intent is to transition the portfolio to align with the existing Pender portfolios, and to do so in a manner that is in the best interests of the unitholders. Our first priority is to identify positions in the portfolio that we can immediately (or in the very near-term) replace with higher quality and lower risk positions from Pender’s existing opportunity set. Moreover, we aim to do so without materially changing the potential return profile of the funds. This repositioning is likely to take up to six months.
We look forward to providing a more fulsome update in our next commentary, which will also include an overview of the key changes that have been implemented in the portfolio. Until then, please reach out to your Vertex One contact with any questions or for additional information on the transition.
Lastly, we would like to extend our sincere thanks for your patience and support as we move forward.
Please feel free to contact us should you have questions.
Download the PDF here.
ARCHIVES For previous quarterly reports please see the Archives.
Enhanced Income Fund
- Class B : VRT 700
- Class F : VRT 701
- Low Load : VRT 702
- Minimum Investment :
- $500 (initial)
- $50 (subsequent)