PenderFund Capital Management (Pender) is to acquire the investment fund management contracts for five investment funds managed by Vertex One – the Vertex Value Fund, Vertex Enhanced Income Fund and Vertex Growth Fund, which are offered publicly pursuant to a simplified prospectus, and the Vertex Fund and Vertex Managed Value Portfolio, which are offered privately to prospectus exemptions.
Upon completion, and subject to receipt of all regulatory and unitholder approvals, Pender will become the investment fund manager and portfolio manager of the Vertex Funds. The Transaction is expected to close in the fourth quarter of 2019, subject to customary closing conditions, including regulatory and unitholder approvals.
On 1 July, 2019, Pender was appointed as sub-advisor for the Vertex Value Fund, Vertex Enhanced Income Fund and Vertex Managed Value Portfolio.
“Since Pender began serving as sub-advisor to the Vertex Value Fund, Vertex Enhanced Income Fund and Vertex Managed Value Portfolio, we have come to recognise the depth of experience and knowledge that Pender brings as an investment manager,” says Vertex One co-founder John Thiessen. “We are excited for this new chapter for our funds and the excellent track record and expertise that Pender will leverage to deliver value, income and growth to our clients.”
Currently, Pender and Vertex One are contemplating merging the Vertex Fund, Vertex Growth Fund and the Vertex Enhanced Income Fund into the Pender Strategic Growth & Income Fund as part of the Transaction. No final determination has yet been made in this regard and a further announcement will be made in the near future as soon as Pender and Vertex One determine if and when to proceed with these mergers. The Agreement also gives Pender an option to merge any of the Vertex Funds into one or more funds managed by Pender, subject to regulatory and unitholder approvals.
“With global interest rates pushing towards zero, money is finding a home in positive yield. The Pender Strategic Growth & Income Fund combines the best equity ideas of Dave Barr and Felix Narhi with a fixed income allocation managed by one of Canada’s fastest growing fixed income managers, Geoff Castle. Having worked with Geoff Castle and Dave Barr extensively, I believe a merged super fund would be the perfect combination of growth and income and, as the largest unitholder of such a merged fund, it’s where I want my money,” says Thiessen.
“We are excited to build on the legacy of disciplined, value-based active management by the Vertex One team,” says David Barr, President and Portfolio Manager, Pender. “Moving forward we will be applying the Pender investment process to the funds and look forward to protecting and growing unitholder wealth over the long term.”
After completion of the proposed acquisition and, subject to regulatory approval, Thiessen, the current portfolio manager of the Vertex Fund and Vertex Growth Fund, will serve as an independent advisor to Pender and the Pender Strategic Growth & Income Fund.