Investment firm converts two key strategies into alternative mutual funds
PenderFund Capital Management is converting to of its mutual fund strategies into alternative mutual funds.
As of September 1, the Pender Value Fund II (PVFII) and the Pender Special Situations Fund (PSSF) will be converted into a liquid alternative fund as set out under NI 81-102.
After the conversion, PVFII aims to achieve capital growth over the long-term, while being sufficiently diversified to mitigate volatility, primarily by investing in North American securities.
Currently, PVFII focuses on businesses that have the potential for growth over the long term and have securities that trade at favourable prices. That objective will no longer apply following the conversion.
PVFII will also be renamed to the Pender Alternative Multi-Strategy Income Fund, and its risk rating will be adjusted from “High” to “Low”.
For all units of PVFII, performance fees will equal 15% of the amount by which the total return of the class of units exceeds a 3% hurdle rate.
Meanwhile, PSSF’s objective will be to achieve long-term capital appreciation by investing primarily in Canadian and US equities with the ability to also invest in debt and other securities. It will continue to identify investment opportunities believed to represent special situations.
PSSF will be renamed to the Pender Alternative Special Situations Fund, and its current “Medium” risk rating will be maintained even after the conversion.
All units of PSSF will be subject to a performance fee equal to 15% of the amount by which the total return of the class of units exceeds a 6% hurdle rate.