Vertex Managed Value Portfolio

- An Active Alternative -

Overview

Portfolio Manager John Thiessen & Emily Wheeler
Firm Assets $824 Million
Fund Assets $133 Million
Purchase Minimum $25,000 (initial), $1,000 (subsequent)
Type of Fund Opportunistic Value Equity & Income
Inception Date (A) April 3, 1998 (B) October 31, 2003 (F) March 31, 2003
RSP/TFSA Eligible Yes
Performance Fee 20% above the hurdle rate of 5%
Management Fee (B)1.9% (F)1%
High Water Mark No
Hurdle Rate 5%
Valuation Frequency Monthly
Distribution Frequency Annually, if applicable.
Offering Type Offering Memorandum
Administration CIBC Mellon
Trustee CIBC Mellon
Custodian CIBC Mellon
Prime Broker TD Securities Inc.
Auditor PwC

Strategy

Emphasis is placed on equities trading at values of under two-thirds of the general market, when looking at their price-to-earnings or price-to-book ratios, that also have annuity stream revenues with lower debt and higher dividends. If the valuations of annuity-based companies are not favourable due to changing economic conditions, the portfolio may invest in equities within sectors trading at discounted valuations to the general market. This approach can result in a portfolio concentrated on fewer sectors of the overall economy. Income is achieved through many avenues: investments in conventional government and corporate bonds, as well as preferred, convertible and broken convertible securities. In addition, the Fund will take advantage of opportunities in higher-yielding equities, securities lending and covered-call writing.

Objective

The principle objective is to provide growth of capital while minimizing volatility through investment in a combination of equities and income securities, while maintaining an opportunistic outlook for unique investment situations. Using a common sense businesslike approach, our core belief is that return is generated through company earnings, not stock trading; thus turnover is limited.

Portfolio Manager

John Thiessen, CFA - Mr. John Thiessen is a founding partner and director of Vertex One Asset Management. He has operated as the lead manager of the Vertex Fund since its inception on February 6, 1998. Mr. Thiessen has significant investment experience with 23 years of equity, fixed income and arbitrage investing. He began his career with the Alberta Treasury Investment Management Division, after which he became an Investment Officer with National Trust. He was a Portfolio Manager with HSBC Asset Management before co-founding Vertex One Asset Management. Mr. Thiessen holds the professional designation of Chartered Financial Analyst (CFA) and is a member of the Institute of Chartered Financial Analysts.

Fund Codes

  • Class F (NL) : VRT 101
  • Class B (FEL) : VRT 102

Purchase Info

  • Minimum Investment :
  • $25,000 for accredited investors

Quarterly Commentary

First Quarter Report 2019: “Down markets are when stocks return to their rightful owners.” ~ JPMorgan Chase. As investors, it might seem that sometimes we’re at the whim of market forces beyond our control. Take the last quarter of 2018 for example. If you were an equity investor, you likely would have seen your investments take a significant drop, unless you were overconcentrated in just a few select stocks –...

Vertex Managed Value Portfolio A Performance

View Class B Statistics View Class F Statistics *Annualized compound returns. Returns are Net of all Fees and include reinvested distributions. Inception April 3, 1998.

Class A Net Asset Value : $15.8296

As at May 31, 2019

1 Month

-14.32%

3 Month

-12.73%

6 Month

-19.39%

YTD

-7.01%

1 Year

-44.35%

3 Year*

-5.32%

5 Year*

-3.99%

10 Year*

6.39%

15 Year*

4.37%

Cumulative Return

As at May 31, 2019

Since Inception*

As at May 31, 2019

Percent Positive Months

As at May 31, 2019
258.37% 6.20% 61.42%
 
 
 

Vertex Managed Value Portfolio vs Benchmarks

Relative Statistic

TSX TRI

S&P 500 TRI $USD

Alpha 0.32%0.26%
Annualized Alpha 3.90%3.13%
Beta 0.450.53
Correlation 0.480.58
R-squared 0.230.34

Individual Statistic

FUND

TSX TRI

S&P 500 TRI $USD

Compound ROR 6.20%6.17%6.39%
Standard Deviation 13.53%14.45%14.96%
Cumulative Return 258.37%255.13%272.92%
Sharpe Ratio† 0.340.360.36
Sortino Ratio 0.510.540.58
Largest Monthly Gain 10.40%12.05%10.93%
Largest Monthly Loss -16.85%-20.11%-16.79%
Positive Months 61.42%62.11%64.45%

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

*Returns are based on Class A shares. Inception April 3, 1998

Historical Returns*

*Returns are based on Class A shares. Inception April 3, 1998

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Year

20198.24%-1.56%0.03%1.83%-14.32%-7.01%
2018-0.48%-0.58%-1.35%6.93%1.82%2.36%-6.03%-4.12%1.80%-16.85%-11.55%-13.31%-36.40%
20172.24%3.38%-4.98%-2.30%-5.85%-2.71%2.33%-0.70%7.46%4.49%0.80%2.13%5.58%
2016-10.25%0.25%7.09%0.45%1.48%0.06%8.65%4.39%1.99%1.85%10.40%4.45%33.52%
20151.59%2.77%-2.55%-0.26%4.28%-1.27%-5.89%-4.94%-5.31%4.62%2.45%-0.46%-5.57%
20142.45%3.41%-1.15%-1.49%0.24%0.70%-4.72%4.76%-3.09%2.36%0.08%3.83%7.14%
20136.42%3.24%5.53%0.19%0.17%2.49%3.29%-1.36%2.22%3.33%3.87%3.18%37.51%
20122.44%2.37%3.02%-1.41%0.44%1.67%-1.48%3.16%2.27%4.31%2.33%3.63%25.09%
20112.74%-1.74%3.09%-1.20%-2.63%-3.44%-5.70%-5.28%-2.29%3.88%2.13%1.24%-9.36%
20100.06%4.03%1.98%2.80%-4.18%-5.46%1.54%-0.23%4.29%2.01%-0.33%3.88%10.30%
2009-6.93%-8.82%3.60%3.58%-2.64%4.50%6.14%8.78%2.00%-1.36%3.62%1.80%13.52%
2008-0.60%-3.03%3.15%-0.45%-0.62%-5.08%5.52%1.91%0.34%-2.87%-1.81%6.01%1.84%
20071.14%-0.67%-0.12%1.49%-1.32%-2.25%-8.90%-1.81%-0.13%-2.98%3.15%-2.36%-14.24%
20061.71%-0.60%1.84%-1.19%-3.75%0.11%3.24%2.82%3.47%3.76%2.29%3.25%18.00%
20051.10%1.83%-1.85%-2.82%4.61%1.30%3.03%-1.37%0.13%-3.81%3.77%-0.47%5.19%
20045.16%2.02%-1.04%-0.43%-1.21%1.50%-1.12%-1.72%0.01%1.98%2.01%3.70%11.15%
2003-2.82%-1.90%-2.59%6.43%6.73%3.33%2.75%2.49%-1.37%1.86%1.13%3.31%20.49%
20021.21%2.42%1.20%2.27%0.89%-3.34%-4.33%0.97%-4.35%0.21%8.16%-1.78%2.91%
2001-3.65%-0.29%-2.48%-1.08%3.70%-2.73%1.01%0.74%-6.76%7.29%2.25%1.54%-1.21%
2000-3.57%7.49%5.50%-0.77%2.63%2.16%1.05%3.86%0.01%0.91%-0.72%5.49%26.22%
19992.80%-4.23%1.26%3.26%-0.20%1.35%-1.00%0.02%0.39%-0.36%4.50%6.46%14.73%
1998-2.21%1.64%2.79%-0.90%-11.70%4.51%1.43%4.42%2.87%1.80%