Firm completes acquisition of investment management fund contracts and implements other changes
PenderFund Capital Management has completed its acquisition of certain investment-management fund contracts from Vertex One Asset Management.
With the completed transaction, three new funds will be added to the Pender Fund lineup:
- Pender Enhanced Income Fund – formed from a merger of the Vertex Growth Fund and the Vertex Fund with the former Vertex Enhanced Income Fund;
- Pender Value Fund II – formerly the Vertex Value Fund; and
- Pender Partners Fund – formerly the Vertex Managed Value Portfolio
The Pender Enhanced Income Fund and the Pender Value Fund II will be offered publicly pursuant to a simplified prospectus, while the Pender Partners Fund will be offered privately in accordance with required prospectus exemptions.
With the potential to benefit from inherited available tax losses, the Pender Enhanced Income Fund has been altered with new investment objectives — to generate income and long-term growth in value for unit holders — which are consistent with those of the Pender Strategic Growth and Income Fund.
With mandates similar to the existing Pender Value Fund, the Pender Value Fund II and the Pender Partners Fund — which likewise stand to potentially benefit from inherited tax losses — have had their objectives reset towards achieving capital growth over the long-term for unitholders.
Pender also announced a slew of other changes concurrent with the closing of its acquisition of contracts from Vertex:
- Cancelled low-load sales charges options for Class B units of the Vertex Growth Fund, the Vertex Value Fund and Vertex Enhanced Income Fund;
- Cancelled redemption charge option for Class B units for the Vertex Growth Fund (now the Pender Enhanced Income Fund), with no sales charges levied for outstanding purchases of Class B units that were made under the option;
- Class B units of the Vertex Value Fund (now the Pender Value Fund II) have been renamed to Class A, with management fees for all classes of the fund bring reduced by 0.1%;
- Class A and Class B of Vertex Managed Value Fund (now the Pender Partners Fund) changed to Class F2 and Class A, respectively, with management fees reduced by 0.1% for Class A and Class F units of the fund;
- Reduced management fees by 0.25%for Classes B and F of the Vertex Fund and Vertex Growth Fund (collectively now the Pender Enhanced Income Fund);
- Increased management fees for Class B units of the Vertex Enhanced Income Fund (now the Pender Enhanced Income Fund) by 0.25%;
- Combined Class A and Class F units of the Vertex Enhanced Income Fund (now the Pender Enhanced Income Fund), with Class B units being renamed Class A;
- Amended each fund’s trust agreement to allow the trustee on behalf of the fund to allocate realized capital gains to fund a redemption to redeeming unitholders; and
- Certain operating expenses are now charged to each fund through a fixed-rate administration fee.
PricewaterhouseCoopers will also be replacing KPMG as the auditor of each fund effective on or about January 1, 2020.