Vertex Liquid Alternative Fund Plus

- An Everyday Equity Alternative -

Overview

Portfolio Manager Craig Chilton & Tom Savage
Firm Assets $899 Million
Strategy Assets $316 Million
Purchase Minimum $500 (initial), $50 (subsequent)
Type of Fund Alternative Market Neutral
Inception Date January 17, 2019
RSP/TFSA Eligible Yes
Performance Fee 15% of the amount exceeding the perpetual high water mark
Management Fee (B)2% (F)1%
High Water Mark Yes, perpetual
Early Switch/Redemption 2% fee within 30 calendar days of purchase
Valuation Frequency Daily
Distribution Frequency Annually, if applicable.
Offering Type Simplified Prospectus
Administration CIBC Mellon
Trustee CIBC Mellon
Custodian CIBC Mellon
Prime Broker CIBC World Markets
Auditor PwC

Highlights

  • Independent Source of Return
  • Downside Protection
  • Consistent Capital Growth through Risk Management
  • Equity-like Returns from Bond-like Volatility
  • Objective

    The fundamental investment objective of the Vertex Liquid Alternative Fund Plus is to generate consistent, positive returns, with lower volatility and low correlation to equity markets by providing levered exposure to the Vertex Liquid Alternative Fund ("VLAF").

    Strategy

    The Manager intends to invest in units of the VLAF, enter into derivative contracts that are intended to replicate the return of the VLAF (less the implicit funding cost), and/or use the same investment strategies as the VLAF (investing directly in arbitrage situations). As a result of these investment activities, the Manager intends for the VLAFP to gain 200% exposure to the VLAF, net of borrowing and/or dealer costs.

    The most common strategy the Manager intends to use in VLAF is merger arbitrage, which involves purchasing the shares of an announced acquisition target company at a discount to the expected merger consideration. When a transaction is announced, the value of the cash and/or securities to be received is typically higher than the market price of the target company. The discount that the target security trades at is called the merger arbitrage “spread.” If the Manager believes that it is probable that the proposed transaction, or a higher value transaction, will be consummated in a time frame that makes the spread an attractive rate of return, VLAFP may purchase shares of the target company.

    The Manager intends to use investment strategies designed to minimize market exposure which are permitted within an alternative mutual fund but may be limited or prohibited within other types of mutual funds.

    Portfolio Managers

    Craig Chilton and Tom Savage are the portfolio managers of the Vertex Liquid Alternative Fund. Both joined Vertex One in January 2010 from CIBC’s highly successful, proprietary trading group.

    Craig Chilton, CFA - Mr. Chilton has an extensive background in event-driven arbitrage strategies. Prior to joining Vertex One, he was a Managing Director with CIBC World Markets, where he spent 15 years as a proprietary trader in Toronto, New York and Vancouver. Craig began his finance career in investment banking with Lancaster Financial, and subsequently, Richardson Greenshields. Craig has over 20 years of experience in the investment industry; he is a CFA charterholder and a member of the Vancouver Society of Financial Analysts. He received a Bachelor of Applied Science (Electrical Engineering) from the University of Toronto.

    Tom Savage, CFA, MBA - Mr. Savage has an extensive background in alternative strategies and is part of the Vertex One team specializing in merger arbitrage, event-driven arbitrage, and special situations. Prior to joining Vertex One, Tom was a proprietary trader with CIBC World Markets where he was responsible for equity and derivatives arbitrage and special situations strategies. Formerly, he worked in private equity at Birch Hill Equity Partners and began his career as an equity analyst at KBSH Capital Management. Tom is a CFA charterholder and a member of the Vancouver Society of Financial Analysts. He received a Bachelor of Commerce degree from Queen’s University and an MBA from Harvard Business School.

    Fund Codes

    • Class B (FEL) : VRT 2000
    • Class F (NL) : VRT 2001

    Purchase Info

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

    Downloads

    Quarterly Commentary

    First Quarter Report, 2019: We are pleased to announce the addition of the Vertex Liquid Alternative Fund (VLAF) and Vertex Liquid Alternative Fund Plus (VLAFP) to the line up of our Arbitrage products. These funds are focused on the same strategies as the VAF/VAFP, have daily liquidity, and are offered under a prospectus structure. For the first quarter of 2019, the Vertex Liquid Alternative Fund and Vertex Liquid Alternative Fund...

    Vertex Liquid Alternative Fund Plus F Performance

    View Class B Statistics *Annualized compound returns. Returns are Net of all Fees and include reinvested distributions. Inception Jan 17, 2019.

    Current Net Asset Value

    As at May 17, 2019

    One Day

    As at May 17, 2019

    Month to Date

    As at May 17, 2019

    Year to Date

    As at May 17, 2019
    $10.0995 $-0.004 (-0.04%) -0.11% 1.00%

    Monthly Performance

    As at April 30, 2019

    1 Month

    0.54%

    3 Month

    0.97%

    6 Month

    N/A

    Cumulative Return

    As at April 30, 2019
    1.11%
     
     
     

    Portfolio Details

    Average Market Cap

    # of Deals

    # of SPACs*

    $12 Billion 15 58

    *Special Purpose Acquisition Companies

    Historical Returns*

    *Returns are based on Class F shares. Inception Jan 17, 2019

    Jan

    Feb

    Mar

    Apr

    May

    Jun

    Jul

    Aug

    Sep

    Oct

    Nov

    Dec

    Year

    20190.14%-0.14%0.57%0.54%1.11%