Redemption FAQs
Is Pender Growth Fund in a position to honour my redemption request?
A primary goal of Penderfund Capital Management has always been to provide liquidity to Pender Growth Fund shareholders. With junior technology companies lagging behind the larger cap stock recovery, we are finding that the number of opportunities to generate liquidity have reduced to the point where we face the potential suspension of redemptions in March, 2010.
As a consequence, Pender has revised its procedure for processing redemptions requests.
How will the Fund now handle redemption requests?
If you hold shares that are redeemable at any time on or before March 1, 2010 (i.e. you purchased shares prior to March 1, 2005), you may submit a request for redemption at any time up to 1.00pm on January 29, 2010.
The fund will treat these requests as having been received concurrently and will honor these redemption requests on February 3rd, 2010. If there are not sufficient funds to honor all redemptions, each shareholder will be paid a pro rata share of the funds available.
If redeeming all requests would put the fund in a working capital deficiency, the fund will suspend further redemptions.
If my shares are not eligible for redemption until later in 2010, will Pender honour my redemption in cash?
ALSO
If my redemption request is made by January 29th, and paid out on a pro rata basis, when will I receive the difference?
The source of funds to meet redemption requests derives from investment income, portfolio gains and “mature investments.” If you hold shares that are eligible for redemption after March 1, 2010 then redemptions will only be available once the Fund has been able to precipitate a liquidity event within its portfolio of investments.
What is the Fund doing to ensure sufficient funds for future redemption requests?
A primary goal of Penderfund Capital Management has always been to provide liquidity to Pender Growth Fund shareholders. The sources of liquidity available to the Fund to meet redemption requests are income from investments, portfolio gains and “mature investments.” The Fund must comply with the British Columbia Small Business Venture Capital Act (SBVCA), which essentially stipulates that portfolio investments have to be held by the Fund for a minimum required five-year time period. Pender will continue to do its best to realize liquidity events so that it is able to meet as many redemption requests as possible.
As a result of the potential suspension, Pender is proposing a new structure. Go to the Proposed New Structure webpage.
How do I request redemption of my shares?
Shareholders wishing to redeem must deliver a redemption request form signed by the shareholder or his/her authorized investment dealer or broker, specifying the number of shares that the shareholder wishes to have redeemed. An order may be entered through FundSERV or click here to download a PDF of the Redemption Request Form Series II.
How is the redemption value of my shares determined?
Ordinarily, shares will be redeemed at a price which is equal to the Weekly Pricing Net Asset Value per Share on the valuation date (each Friday). This price is published weekly on the Pender website and in the mutual fund section of The Vancouver Sun, The Province, The Globe and Mail and The National Post, where the Fund is listed under The Manager, PenderFund Capital Management.
For the revised redemption period, the valuation date will coincide with the trade date of January 29, 2010.
Do I have to redeem my shares on the redemption date?
No. You can continue to hold the shares as long as you wish. Doing so will not affect their ability to be redeemed in the future.
Can I reinvest my cash redemption into Pender Growth Fund and receive a 30% Tax Credit?
Yes. Please note that Pender Growth Fund will sell its tax allocation on a first come - first served basis.
Am I eligible to redeem my shares this year?
Under the current redemption policy, you will be eligible to redeem your shares at any time more than five years from the date of issue.
If I request redemption and based on pro rata rules have some PGF units remaining, will I be placed on a waiting list for Pender to buy back my Shares?
Yes.