Vertex Enhanced Income Fund

- Not Your Average Income Fund -

Overview

Portfolio Manager Matthew Wood, Tim Logie & Emily Wheeler
Firm Assets $1.37 Billion
Fund Assets $88 Million
Purchase Minimum $5000 (initial), $50 (subsequent)
Type of Fund North American Income
Inception Date Sept 21, 2009
RSP/TFSA Eligible Yes
Performance Fee 20% of the amount exceeding the daily relative benchmark
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 Managers

Matthew Wood, CFA - Mr. Matthew Wood is a founding partner and director of Vertex One Asset Management. Mr. Wood has overall responsibility for the investment and trading decisions affecting the Vertex Managed Value Portfolio, Vertex Value Fund and Vertex Enhanced Income Fund. He has operated as the lead manager of the Managed Value Portfolio since its inception on April 3, 1998. Mr. Wood has over 20 years experience investing in equities, fixed income and derivatives. His career began as an analyst, later becoming a Financial Advisor, with Royal Trust. He was a Portfolio Manager with HSBC Asset Management before co-founding Vertex One Asset Management. Mr. Wood holds the professional designation of Chartered Financial Analyst (CFA) and is a member of the Institute of Chartered Financial Analysts.

Tim Logie, CFA, MBA - Mr. Logie joined Vertex One in 2001. He started his career in the Property and Casualty actuarial field before completing an MBA and moving into derivative trading at TD Securities in Toronto. While at TD, Mr. Logie worked with Bond Options and Interest Rate Derivatives before becoming TD’s Energy Derivative trader. He received an Honors Business Administration degree as well as an MBA from the Richard Ivey School of Business at Western University. Mr. Logie holds the professional designation of CFA, is a member of the Institute of Chartered Financial Analysts and the Vancouver Society of Financial Analysts.

Fund Codes

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

Purchase Info

  • Minimum Investment :
  • $5,000 (initial)
  • $2,000 (subsequent)

Downloads

Quarterly Commentary

Third Quarter Report 2017 - The Vertex Enhanced Income Fund returned 1.51% for the month of September and 3.39% for the third quarter of 2017. The equity component of the fund provided the bulk of our returns for the month of September. A material portion of the equity weight (currently 24.49% of the fund) is allocated to offshore drilling and other energy names. Saudi Arabia is creating an interesting dynamic...

Vertex Enhanced Income Fund F Performance

View Class B Statistics *Annualized compound returns. Returns are Net of all Fees and include reinvested distributions.

Current Net Asset Value

As at November 21, 2017

One Day

As at November 21, 2017

Month to Date

As at November 21, 2017

Year to Date

As at November 21, 2017
$9.3389 $0.0035 (0.04%) -0.95% 2.38%

1 Month

-1.53%

3 Month

0.07%

6 Month

-0.28%

1 Year

8.81%

3 Year*

0.79%

5 Year*

3.79%

Cumulative Return

Since Inception*

Percent Positive Months

58.10% 5.81% 64.29%
 
 
 

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 6.97% 0.66 4.43% -5.18% 64.29%
Benchmark* N/A 3.48% 0.84 3.42% -2.58% 67.35%

†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

20171.72%2.24%0.26%-0.59%-1.19%-0.86%1.74%0.11%1.51%-1.53%3.36%
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%