PenderFund Capital Management Ltd. Announces Fund Mergers
VANCOUVER, B.C., – PenderFund Capital Management Ltd. (“Pender”) announces the following fund mergers, effective June 23, 2023: Pender Global Focused Fund (“PGFF”) merged into Pender Value Fund (“PVF), and Pender Strategic Growth and Income Fund (“PSGIF”) merged into Pender Enhanced Income Fund (“PEIF”). The mergers received the requisite unitholder approval on May 23, 2023.
On completion of the mergers, each of PVF and PEIF is continuing, and each of PGFF and PSGIF is terminating. Pender, as manager of the terminating funds, has filed an application with the applicable securities regulatory authorities for an order that each of PGFF and PSGIF has ceased to be a reporting issuer in each jurisdiction in which it is currently reporting.
Further details regarding each merger, including fee structure, valuation frequency, risk rating and benchmark differences between the continuing and terminating funds, are set forth below.
Additional information regarding the mergers is provided in the management information circular of PGFF dated April 26, 2023, the joint management information circular of PSGIF and PEIF dated April 26, 2023, and the most recent simplified prospectus of the Funds, all of which are available on the SEDAR profile of the relevant Fund at www.sedar.com.
Pender Enhanced Income Fund (renamed, “Pender Strategic Growth and Income Fund”)
Effective June 23, 2023, all of the assets and investments of PSGIF were transferred to PEIF and unitholders of PSGIF became unitholders of PEIF. In addition, PEIF changed its name to “Pender Strategic Growth and Income Fund” (“New PSGIF”).
Class Switch and Change in Fee Structure: On completion of the merger, Class H unitholders of PSGIF received Class A units of New PSGIF. As a result, the management fee for these unitholders will temporarily increase from 1.40% to 1.70% per annum. On or about June 27, 2023, on renewal of the simplified prospectus of New PSGIF and the qualification thereunder of a new Class H (which Class H will be subject to a management fee of 1.40% per annum), Pender intends to automatically exchange Class A units of New PSGIF received by former Class H unitholders of PSGIF for Class H units of New PSGIF. Due to the brief transition period, former Class H unitholders of PSGIF are not expected to be adversely impacted.
Distribution Policy: Post merger, it is intended that New PSGIF will distribute its net investment income quarterly and its net realized capital gains annually in December of each year.
Risk Rating: New PSGIF risk rating will remain at Medium. The risk rating for each mutual fund is reviewed at a minimum on an annual basis, as well as when the mutual fund undergoes a material change. A summary of the methodology used by Pender to identify the risk rating of New PSGIF can be found in the fund’s simplified prospectus available on SEDAR at www.sedar.com. This methodology is also available by calling toll-free 1-866-377-4743 or sending an email to info@penderfund.com.
Pender Value Fund
Effective June 23, 2023, all of the assets and investments of PGFF were transferred to PVF and unitholders of PGFF became unitholders of PVF.
Fee Structure. The management fee applicable to Class A, F, H and I units of PVF are slightly higher than for the equivalent classes of PGFF, as described below:
| Pender Global Focused Fund Management Fee | Pender Value Fund Management Fee |
Class A Units | 1.80% | 1.85% |
Class A (US$) Units | 1.80% | – |
Class E Units | Nil | Nil |
Class F Units | 0.80% | 0.85% |
Class F (US$) Units | 0.80% | – |
Class H Units | 1.50% | 1.55% |
Class I Units | 0.65% | 0.70% |
Class N Units | 0.30% | 0.30% |
Class N (US$) Units | 0.30% | – |
Class O Units | Nil | Nil |
As with any fund that it manages, Pender, as manager of PGFF, may increase the management fee for PGFF upon 60 days’ notice to unitholders.
Valuation Frequency: PVF has a daily valuation frequency, whereas PGFF had a weekly valuation.
Risk Rating Change: PVF’s risk rating is Medium to High, whereas PGFF’s risk rating was High. The risk rating for each mutual fund is reviewed at a minimum on an annual basis, as well as when the mutual fund undergoes a material change. A summary of the methodology used by Pender to identify the risk rating of PVF can be found in the PVF simplified prospectus available on SEDAR at www.sedar.com. This methodology is also available by calling toll-free 1-866-377-4743 or sending an email to info@penderfund.com.
Benchmark: The benchmark for PVF is the S&P/TSX Composite Index, whereas the benchmark for the PGFF was S&P 500 Index
About PenderFund Capital Management Ltd.
Pender was founded in 2003 and is an independent, employee-owned investment firm located in Vancouver, British Columbia. Our goal is to protect and grow wealth for our investors over time. We have a talented investment team of expert analysts, security selectors and independent thinkers who actively manage a suite of differentiated investment funds, exploiting inefficient parts of the investing universe to achieve our goal.
For more information on Pender, visit www.penderfund.com and www.fondspender.com.
Please read important disclosures at www.penderfund.com/disclaimer.
For further information, please contact:
Melanie Moore
Vice President of Marketing, PenderFund Capital Management Ltd.
mmoore@penderfund.com
(604) 688-1511
Toll Free: (866) 377-4743
Forward-Looking Information
This news release may contain forward-looking information (within the meaning of applicable securities laws) relating to the business and operations of Pender and the Funds (“forward-looking statements”). Forward-looking statements may be identified by words such as “intend”, “anticipate”, “project”, “expect”, “believe”, “plan”, “will”, “may”, “estimate” and other similar expressions. These statements are based on Pender’s expectations, estimates, forecasts and projections and include, without limitation, statements regarding New PSGIF’s anticipated class switch and current distribution policy. The forward-looking statements in this news release are based on certain assumptions; they are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements, including, but not limited to, the factors discussed under the heading “Risk Factors” in the simplified prospectus available on the SEDAR profile of each Fund at www.sedar.com. There can be no assurance that forward-looking statements will prove to be accurate as actual outcomes and results may differ materially from those expressed in these forward-looking statements. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, these forward-looking statements are made as of the date of this news release and, except as expressly required by applicable law, Pender assumes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
