VANCOUVER, June 28, 2019 /CNW/ - Vertex One Asset Management, Inc. ("Vertex One"), manager of the Vertex Value Fund, Vertex Enhanced Income Fund and Vertex Growth Fund (the "Vertex Funds"), announced today that it is removing the performance fee in respect of each class of units of the Vertex Funds. Prior to this change, each of the Vertex Funds paid a performance fee to Vertex One equal to 20% of the amount by which the total return of the class of units of the applicable fund exceeded the percentage increase or decrease of the fund's benchmark for the period since the performance fee was last paid, subject to a relative high water mark. The removal of performance fee for each of the Vertex Funds is effective immediately, and will be reflected in the updated Simplified Prospectus and Fund Facts for the Vertex Funds, expected to be filed today.
Vertex One also announced today that it is changing the risk rating associated with the Vertex Value Fund. The Vertex Value Fund previously carried a risk rating of "medium". As of the date of this announcement, the Vertex Value Fund carries a risk rating of "medium to high". The change to the risk rating of the Vertex Value Fund is a result of a determination by Vertex One in accordance with the fund's risk classification methodology. The standardized risk classification methodology used by Vertex One to identify the investment risk level of the Vertex Funds is available on request, by calling us toll free at 1-866-688-6757 or by emailing Vertex One at [email protected].
On June 20, 2019, Vertex One announced that it had entered into a non-binding letter of intent 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. Further to this announcement, Vertex One has now entered into a binding Portfolio Advisor Agreement with Pender, dated as of June 28, 2019, and effective as of July 1, 2019, confirming Pender's appointment as portfolio advisor of the Vertex Value Fund and Vertex Enhanced Income Fund, effective July 1, 2019.
In connection with the appointment of Pender as portfolio advisor to the Vertex Value Fund and Vertex Enhanced Income Fund, and in order to provide Pender with additional flexibility in its role as portfolio advisor, Vertex One has amended the "Investment Strategies" section of Simplified Prospectus for Vertex Value Fund and the Vertex Enhanced Income Fund to remove certain investment restrictions which had previously been imposed on these funds. Prior to this amendment, the investments of the Vertex Value Fund were subject to the following restrictions: options would only be used on a non-leveraged basis; non-marketable securities would be limited to 10% of the net asset value of the Vertex Value Fund; no single equity would represent more than 10% of the market value (calculated according to generally accepted accounting principles) of the Vertex Value Fund; the Vertex Value Fund would hold a minimum of 20 equity securities; and there would be no short selling. Prior to this amendment the investments of the Vertex Enhanced Income Fund were subject to the following restrictions: no more than 50% of the Vertex Enhanced Income Fund would be exposed to foreign currencies; no more than 25% would be invested in common high yield equities; the Vertex Enhanced Income Fund would hold a minimum of 25 securities; there would be no short selling; the Vertex Enhanced Income Fund would not invest more than 25% of the market value of its net assets in common equities; and the Vertex Enhanced Income Fund would not invest more than 25% of the market value of its net assets in preferred shares. These restrictions have been removed, effective as of today. These changes will be reflected in the updated Simplified Prospectus for the Vertex Funds, expected to be filed today. Each of the Vertex Funds remains subject to the restrictions set out in National Instrument 81-102 Investment Funds.
Additional details regarding each of these changes will be set out in updated versions of the Simplified Prospectus, Annual Information Form and Fund Facts, expected to be filed today. These materials will be available at www.sedar.com.
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.
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.
For further information: Media enquiries: Vertex One Asset Management, T 604 681 5787, E [email protected]