Vertex Managed Value Portfolio

- An Active Alternative -

Overview

Portfolio Manager David Barr & Felix Narhi of PenderFund Capital Management, effective July 1, 2019
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

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.

FELIX NARHI, CFA - Mr. Narhi is Chief Investment Officer and a Portfolio Manager at PenderFund Capital Management Ltd. He began his investing career in 1999 and advocates a business-like approach to investing. Sound investing is the process of determining the value underlying a security and then buying it at a considerable discount to that value. The greatest challenge is to maintain the necessary balance between patience and discipline to only buy when prices are attractive and to sell when they are dear.

Mr. Narhi holds a Bachelor of Commerce degree from the University of British Columbia. He earned his Chartered Financial Analyst (CFA) designation in 2003 and is a member of CFA Vancouver.

Fund Codes

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

Purchase Info

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

Quarterly Commentary

Second Quarter Report 2019: Effective July 1st, 2019, Pender became the portfolio advisor for the Vertex Managed Value Portfolio and the Vertex Value Fund, with David Barr, CFA and Felix Narhi, CFA serving as the primary portfolio managers for the funds.For the past few years, we have been impressed by Pender’s steadfast approach to value investing, as well as their impressive history. Their experienced investment team brings an established, dynamic...

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 : $13.8637

As at October 31, 2019

1 Month

0.59%

3 Month

-9.99%

6 Month

-24.96%

YTD

-18.56%

1 Year

-37.56%

3 Year*

-14.25%

5 Year*

-6.45%

10 Year*

2.97%

15 Year*

3.41%

Cumulative Return

As at October 31, 2019

Since Inception*

As at October 31, 2019

Percent Positive Months

As at October 31, 2019
213.86% 5.43% 60.62%
 
 
 

Vertex Managed Value Portfolio vs Benchmarks

Relative Statistic

TSX TRI

S&P 500 TRI $USD

Alpha 0.26%0.18%
Annualized Alpha 3.13%2.21%
Beta 0.440.53
Correlation 0.470.58
R-squared 0.220.33

Individual Statistic

FUND

TSX TRI

S&P 500 TRI $USD

Compound ROR 5.43%6.25%6.79%
Standard Deviation 13.59%14.32%14.89%
Cumulative Return 213.86%269.92%314.78%
Sharpe Ratio† 0.310.390.42
Sortino Ratio 0.470.600.67
Largest Monthly Gain 10.40%12.05%10.93%
Largest Monthly Loss -16.85%-20.11%-16.79%
Positive Months 60.62%62.45%64.75%

†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%-0.03%-2.66%-9.15%-1.50%0.59%-18.56%
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%