VANCOUVER, June 20, 2019 /CNW/ - Vertex One Asset Management, Inc. ("Vertex One") today announced that Matthew Wood resigned as an officer and director of Vertex One effective June 19, 2019. Prior to his resignation, Mr. Wood acted as portfolio manager to the Vertex Value Fund and the Vertex Enhanced Income Fund.
We are pleased to announce that Vertex One has entered into a non-binding letter of intent ("LOI") with PenderFund Capital Management Ltd ("Pender") whereby Pender would assume primary portfolio management responsibility as portfolio advisor of the Vertex Value Fund and Vertex Enhanced Income Fund, effective July 1, 2019. Under the terms of the LOI, the appointment of Pender as portfolio advisor remains subject to certain customary conditions, including the completion of due diligence and formal documentation satisfactory to both parties. Primary portfolio management responsibilities of the Vertex Value Fund will be performed by David Barr, CFA and Felix Narhi, CFA. Primary portfolio management responsibilities of the Vertex Enhanced Income Fund will be performed by Geoff Castle and David Barr, CFA. CIBC Mellon will remain the custodian and trustee of the funds and Vertex One Asset Management will remain the investment fund manager.
There is a strong alignment in Pender's value-oriented investment style with that of the Vertex Value Fund.
The Pender equity team has an exceptional track record and proven-value investment philosophy with the funds it has managed. Pender takes an intrinsic value-based approach to security selection and we are excited about the future of the Vertex Value Fund.
As a fixed income manager Geoff Castle's focus has been on seeking enhanced yield opportunities in situations where substantial margins of safety exist. In particular he has earned strong fixed income returns for clients in the recent low interest rate environment by focussing on "non-conforming" situations where yield or capital appreciation opportunities existed despite strong collateral coverage and otherwise attractive credit fundamentals. Vertex One is excited for the future of the Vertex Enhanced Income Fund under Geoff Castle and David Barr's leadership.
Earlier this year, Vertex One changed from a partner led management model to a management board consisting of four employees and two partners. Amongst other responsibilities, the management board helps to execute and evaluate Vertex One's strategic initiatives and products, ensuring that Vertex One's solutions and portfolio management always serve our clients' best interests.
Vertex One's management board recognizes that performance of the Vertex Value Fund has been a challenge in recent years and has taken proactive measures to address these challenges. After a robust and thorough due diligence process, we are confident that the decision to appoint PenderFund Capital and their investment team is the right one. We want to ensure our clients and unitholders are working with the best investment talent and thought leaders in the industry, which we believe the Pender team exemplifies.
"We look forward to applying a fundamental, bottom-up approach to the management of the Vertex Value Fund," said David Barr. "There are tremendous synergies in terms of both investment process and philosophy. I look forward to serving unitholders by investing in companies valued below their intrinsic value and prioritizing the delivery of superior risk-adjusted alpha over time."
About Vertex One
As one of the longest-running alternative investment managers in Canada, Vertex One continues to gain excellent traction with its growing alternative mutual funds platform, which stems from the firm's proven merger arbitrage strategy.
We are proud to be a Canadian-run, employee-owned firm, delivering over 20 years of quality alternative investment solutions for retail and institutional investors.
Additional details regarding these changes will be set out in updated versions of the Simplified Prospectus and Annual Information Form, expected to be filed on or about June 27, 2019. These materials will be available at www.sedar.com. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the Fund Facts and the Simplified Prospectus for the funds before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.
Information in this news release, other than statements of historical fact, may be forward-looking information. Any forward-looking information in this news release is provided as at the date of this news release, based upon the opinions and estimates of management and information available to management as at the date of this news release. Vertex One undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law. Readers are cautioned not to place undue reliance on forward-looking information contained in this news release.
SOURCE Vertex One Asset Management Inc.
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