V ERTEX 14.57% 21.38%

V ERTEX G ROWTH F UND
VERTEX ONE
A s s e t M a n a g e m e n t I n c.
Top Ten in its Category*
*North American Equity, 12/31/2013, 3-Year Return
Source: Globe Investor
Standard Deviation
Total Cumulative
Return
1-Year Return
99.67%
21.38%
14.01%
5-Year Return
14.57%
Investment Objectives
Primary objective is to acheive long-term capital growth by investing in growth-oriented equities. The Vertex Growth Fund
invests primarily in equity and equity-related securites of North American companies. Investment may focus on assets in specific
industry sectors and asset classes based on analysis of business cycles, industry sectors and market outlook.
Investment Strategy
To achieve the above objectives, fundamental analysis will be used to identify superior investment opportunities with the potential for
above average capital appreciation over the long term. Vertex One will seek inefficiently priced companies backed by strong management teams with solid business models that have the potential to benefit from both industry and macro-economic trends.
Performance (Net of Fees)
Cumulative Return Comparison
1 month
3 month
YTD
1 year
3 year
5 year
Since Inception
2014
2013
2012
2011
2010
Jan
6.07%
1.56%
6.49%
-1.83%
-2.22%
Fund
-3.49%
-2.49%
9.89%
21.38%
18.50%
14.57%
14.23%
Growth of $1,000 Since Inception
Benchmark
-1.11%
2.77%
13.23%
25.34%
18.58%
13.40%
12.93%
Feb
Mar
Apr
7.18% 1.18% -0.25%
0.59% 4.04% 0.19%
1.89% 2.93% -4.00%
5.09% -1.76% -1.03%
2.00% 13.68% 6.09%
$2150
$1950
$1750
$1550
$1350
$1150
May
-1.89%
5.23%
-3.68%
0.20%
-4.28%
$950
Sep-09
Apr-10
Nov-10
Jun-11 Jan-12
Growth Fund
Jun
Jul Aug
Sep
0.11% 0.47% 0.56% -3.49%
-3.00% 1.59% 0.53% 4.14%
-0.87% 2.87% 3.88% 4.05%
-6.85% -0.72% -4.40% -6.36%
-8.69% 5.02% -0.96% 8.78%
Aug-12 Mar-13 Oct-13
Benchmark
May-14
Oct
Year
9.89%
27.56%
16.79%
-15.41%
40.71%
2.48%
0.33%
2.88%
6.04%
Nov
4.79% 2.86%
0.43% 1.83%
-0.70% -0.51%
3.86% 7.41%
Benchmark: 50% S&P 500 Total Return Index, 50% S&P/TSX Composite Total Return Index
Portfolio Manager | John Thiessen & Tim Logie
Dec
As at September 30, 2014
Firm Assets
$2.14 Billion
Fund Assets
$129 Million
Type of Fund
North American Growth
RSP Eligible
Yes
Pricing Schedule
Daily
Offer Document
Simplified Prospectus
Lock up
No
Redemption Fee
2% fee within 45 days
of purchase
Distribution
Annual
Performance Fee
20% of the amount
exceeding the Benchmark
Management Fee
B: 2% F: 1%
Fund Codes
VRT 400(B), VRT 401(F)
VRT 402 (Low Load)
Administration
CIBC Mellon
Trustee
CIBC Mellon
Prime Broker
TD Securities Inc.
Auditor
PriceWaterhouseCoopers
NAVPU - Class B
10.90%
$18.7613
NAVPU - Class F
$19.5000
Minimum Investment
$5,000 (initial)
$2,000 (subsequent)
Fund Fact Sheet
ACTIVE
UNCONSTRAINED
OPPORTUNISTIC
Portfolio Manager
ABSOLUTE
Geographic Allocation
John Thiessen
Mr. John Thiessen is a founding partner and director of Vertex One Asset Management. He has
operated as the lead manager of the Vertex Fund since its inception on February 6, 1998. Mr.
Thiessen has significant investment experience with 25 years of equity, fixed income and
arbitrage investing. He began his career with the Alberta Treasury Investment Management
Division, after which he became an Investment Officer with National Trust. He was a Portfolio
Manager with HSBC Asset Management before co-founding Vertex One Asset Management. Mr.
Thiessen holds the professional designation of Chartered Financial Analyst (CFA) and is a
member of the Institute of Chartered Financial Analysts.
A s s e t M a n a g e m e n t I n c.
Sector Allocations
Industrial
26.45%
73.55%
Portfolio Manager
1.62%
Basic Materials
2.35%
Utilities
2.89%
Technology
3.29%
Consumer, Cyclical
3.73%
Communications
3.91%
Consumer, Non-cyclical
Tim Logie
Latest Quarterly Commentary
Canada
Yield of Dreams – We took some profits from the corn fields of Pacific Ethanol in Q1 and headed
to the oil field in search of double-digit yields. Equities are not overly expensive but they’re also
not overly cheap. Hence, if you’re being offered over a 10% yield to hold a stock with growth
potential, you should take it. With that in mind, we moved money into the oil and gas refiners
CVR Refinery (15% dividend yield) and Northern Tier Energy (11% dividend yield). The kicker
being that on top of their price gains they could pay more in dividends if oil prices decrease from
current levels. On a similar theme, we also own the BP Prudhoe Bay Royalty Trust for its 12%
dividend and various oil and gas bonds. The Oil & Gas portfolio weight is now just below 25%.
High-yielding securities (equities, bonds, REITs and preferred equity) now represent about 50%
of the portfolio. We see yield as an excellent risk-adjusted trade for the current environment.
Yield it and we will come.
The World According to Arb – The merger of Osisko Mining with Yamana Gold and Agnico
Eagle Gold closed during the quarter providing a nice profit to the Fund. Taking its place is a
Nuveen Investments bond that is being acquired by the investment grade manager TIAACREF.
Other deals in the portfolio are Hillshire Brands and Protective Life.
Example Holdings
Benchmark
1.26
$220,000
$200,000
0.88
1.21
$180,000
Standard Deviation
14.01%
8.79%
$160,000
Largest monthly gain
13.68%
5.67%
Largest monthly loss
-8.69%
-4.99%
% positive months
63.93%
70.49%
Sharpe (Rf=2%)
43.99%
Total Cumulative Return of $100,000
Statistical Analysis
Beta
22.71%
Financial
United States
Fund
Mergers
&
Acquisitions
(15.95%)
4.92%
Energy
Mr. Logie began his career in the Property and Casualty actuarial field before completing an
MBA and moving into derivative trading at TD Securities in Toronto. Mr. Logie holds the
professional designation of CFA, is a member of the Institute of Chartered Financial Analysts and
the Vancouver Society of Financial Analysts.
Company Name
Greenlight Capital
CVR Refining LP MLP
Protective Life
Genworth Financial 6.15%
New Resident REIT
VERTEX ONE
$196,689
$185,505
$140,000
$120,000
$100,000
Growth Fund
Benchmark
Corporate Profile
We are an independent investment firm that seeks to offer investors a different approach to fund
management, one based on capital preservation in both good and bad markets. Through six funds we
offer investors a full spectrum of risk and return profiles, actively managed by asset class and
strategy exposure. Vertex employees are collectively the largest investors across its funds.
Vertex One Head Office
Country
United States
United States
United States
United States
United States
Sector/Strategy
Financial
Energy
Insurance
Financial
Real Estate
Weight
4.87%
3.26%
3.24%
6.34%
3.91%
Suite 1920,1177 West Hastings St, Vancouver, BC, Canada V6E 2K3
Phone: 604-681-5787 Toll Free: 866-681-5787 Fax: 604-681-5146
Email: [email protected] Website: www.vertexone.com
Dealer Services
CIBC Mellon Dealer Services
Phone: 416-643-6509 Toll Free: 866-885-7505
This statistical information is intended to provide you with information about the Vertex Growth Fund. Advertised performance is based on Class B shares. Important information about the Fund is contained in the Simplified Prospectus which should be read carefully before investing. You can obtain a
Simplified Prospectus from Vertex One Asset Management Inc. The Simplified Prospectus for Vertex One Asset Management Inc.’s investment funds does not constitute an offer or solicitation to anyone in any jurisdiction in which such an offer or solicitation is not authorized or to any person to whom it is
unlawful to make such an offer or solicitation. The indicated rates of return are the historical compounded returns for the period indicated, including changes in security value and the reinvestment of all distributions and do not take into account income taxes payable that would have reduced returns. The funds
are not guaranteed; their values change frequently and past performance may not be repeated.