Vertex Enhanced Income Fund

- Your source for a fixed 5% yield -

Overview

Portfolio Manager Geoff Castle & David Barr of PenderFund Capital Management, effective July 1, 2019
Purchase Minimum $500 (initial), $50 (subsequent)
Type of Fund North American Income
Inception Date Sept 21, 2009
RSP/TFSA Eligible Yes
Management Fee (B)1.5% (F)0.75%
High Water Mark Yes, relative to benchmark
Early Switch/Redemption 2% fee within 30 calendar days of purchase
Valuation Frequency Daily
Distribution Frequency Monthly. Fixed 5% per annum. Applicable capital gains at year-end.
Offering Type Simplified Prospectus
Administration CIBC Mellon
Trustee CIBC Mellon
Custodian CIBC Mellon
Auditor PwC

Strategy

The fund will invest largely in high yield and convertible bonds, preferred shares, high-yielding equities (up to a 25% weight) and government debt including federal, provincial, state and municipal issues. Covered call writing will be used to enhance yield derived from the equity component of the fund.

Objective

The fundamental investment objective of the Vertex Enhanced Income Fund is to provide preservation of capital while providing high income by investing primarily in Canadian and United States bonds, debentures, and equities. The secondary objective is to provide capital growth.

Portfolio Manager

GEOFF CASTLE, MBA - Mr. Castle is a Portfolio Manager at PenderFund Capital Management Ltd and began his investing career in 2000. He has experience in both public mutual funds and proprietary investment fund management for ultra-high net worth individuals. His background also includes more than five years of industry experience in trade credit and general corporate management. As a fixed income manager, his focus has been on seeking enhanced yield opportunities in situations where substantial margins of safety exist.

Mr. Castle holds a Bachelor of Arts degree from UBC and an MBA from the Richard Ivey School of Business at the University of Western Ontario. He is a member of the CFA Institute.

DAVID BARR, CFA - Mr. Barr is the President and CEO of PenderFund Capital Management Ltd. (“Pender”). He is also the Portfolio Manager of several of Pender’s funds and has been investing since 2000. Mr. Barr is an advocate of value investing and aims to determine the intrinsic value of a company and to buy shares in that company at a significant discount to that value (margin-of-safety). He looks for value in unloved and unfollowed parts of the market where he can find quality at a discount. Capital preservation and downside protection are a primary concern.

Mr. Barr holds a Bachelor of Science degree from the University of British Columbia and an MBA (Finance and Strategic Management) from the Schulich School of Business at York University. He earned his Chartered Financial Analyst (CFA) designation in 2003 and is a past President and an active member of the Vancouver chapter.

 

Fund Codes

  • Class B : VRT 700
  • Class F : VRT 701
  • Low Load : VRT 702

Purchase Info

  • Minimum Investment :
  • $500 (initial)
  • $50 (subsequent)

Downloads

Quarterly Commentary

Second Quarter Report 2019: 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...

Vertex Enhanced Income Fund F Performance

View Class B Statistics *Annualized compound returns. Returns are Net of all Fees and include reinvested distributions. Inception Sept 21, 2009.

Current Net Asset Value

As at November 21, 2019

One Day

As at November 21, 2019

Month to Date

As at November 21, 2019

Year to Date

As at November 21, 2019
$7.4449 $-0.139 (-1.83%) -1.72% -6.71%

Monthly Performance

As at October 31, 2019

1 Month

-0.51%

3 Month

-4.42%

6 Month

-10.51%

1 Year

-7.57%

3 Year*

-1.14%

5 Year*

-1.89%

10 Year*

3.41%

15 Year*

N/A

Cumulative Return

As at October 31, 2019

Since Inception*

As at October 31, 2019

Percent Positive Months

As at October 31, 2019
40.40% 3.41% 60.66%
 
 
 

Fund vs Benchmark*

*60% PC Mid-Term Overall Bond Index + 20% S&P/TSX Preferred Share Index + 20% TSX TRI

Fund / Benchmark

Correlation

Standard Deviation

Sharpe Ratio†

Largest Monthly Gain

Largest Monthly Loss

Positive Months

Vertex Enhanced Income Fund 0.43 7.13% 0.22 4.43% -5.18% 60.66%
Benchmark* N/A 3.41% 0.56 3.42% -2.58% 67.21%

†Risk Free Rate = 1 Month LIBOR $USD (annualized)

*Returns are based on Class F shares. Inception Sept 21, 2009

Historical Returns*

*Returns are based on Class F shares. Inception Sept 21, 2009

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Year

20193.29%0.11%1.02%1.55%-2.57%-1.53%-2.42%-4.42%0.52%-0.51%-5.09%
20182.63%-2.14%-1.71%-0.23%-0.19%0.52%2.31%-0.94%0.39%-4.95%0.41%-3.01%-6.93%
20171.72%2.24%0.26%-0.59%-1.19%-0.86%1.74%0.11%1.51%-1.53%-1.08%1.63%3.91%
2016-2.83%-1.04%4.43%2.67%1.80%-1.06%1.48%0.90%1.88%0.71%3.00%2.21%14.85%
2015-1.18%2.02%-1.22%1.53%-0.25%-0.77%-2.48%-3.21%-3.00%1.81%-2.36%-2.93%-11.47%
20140.63%2.28%0.68%0.61%1.39%1.20%-0.47%1.35%-2.67%-1.06%-1.05%-1.54%1.24%
20132.78%1.46%1.18%1.24%0.84%-1.49%1.27%-0.53%0.90%1.61%0.86%1.07%11.71%
20122.95%2.67%0.74%0.01%-1.70%0.35%2.11%1.33%1.49%1.35%0.07%1.27%13.29%
20112.14%1.82%0.73%0.58%-0.19%-1.97%-0.72%-4.63%-5.18%4.08%-2.17%0.13%-5.64%
20101.74%1.80%2.51%3.08%-4.48%-2.03%4.18%-1.17%4.08%2.73%-0.35%3.74%16.57%
2009-0.02%0.43%2.54%3.69%6.76%