V ERTEX E NHANCED I NCOME 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 for 2013* *Global Fixed Income Balanced, 2013, 1-Year Return Source: Globe Investor Since Inception Return Standard Deviation 7.01% 8.42% 1-Year Return 5-Year Return Firm Assets $2.14Billion 8.02% 8.58% Fund Assets $292 Million Type of Fund North American Income RSP/TFSA Eligible Yes Pricing Schedule Daily Offer Document Simplified Prospectus Lock up No Redemption Fee 2% fee within 45 days of purchase Distribution Monthly Performance Fee 20% of the amount exceeding daily Benchmark Management Fee B: 1.5% F: 0.75% Fund Codes VRT 700(B), VRT 701(F) VRT 702 (Low Load) Administration CIBC Mellon Trustee CIBC Mellon Custodian CIBC Mellon Auditor PriceWaterhouseCoopers Investment Objectives The fundamental investment objective is to provide preservation of capital while providing high income by investing primarily in Canadian and United States bonds, debentures, and equities. The secondary objective is to provide capital growth. Investment Strategy The Fund will invest largely in high yield and convertible bonds, preferred shares, high-yielding equities (up to a 25% weight) and government debt including federal, provincial, state and municipal issues. Covered call writing will be used to enhance yield derived from the equity component of the Fund. Performance (Net of Fees) Cumulative Return Comparison Fund Benchmark 1 month -2.73% -1.00% 3 month -2.01% 0.81% YTD 4.46% 7.04% 1 year 8.02% 8.75% 3 year 9.96% 4.37% 5 year 8.58% 4.41% Since Inception 8.42% 4.42% Growth of $1,000 Since Inception $1650 $1550 $1450 $1350 $1250 $1150 $1050 $950 Sep-09 Feb-10 Jul-10 Dec-10 May-11 Oct-11 Mar-12 Aug-12 Enhanced Income Fund Jan-13 Benchmark Example Holdings Issuer Name Royal Bank of Scotland (various) JC Penny Corporation (various) One Roof Energy, 5% Convert. Speedy Cash, 144A 10/75% Gentiva Health 11.5% 01/09/2018 Country UK United States United States United States United States Sector Financial Retail Solar Financial Health Care Weight 1.08% 1.74% 0.47% 1.22% 1.15% Benchmark: 20% S&P/TSX Preferred Share Index, 20% S&P/TSX Composite Total Return Index, 60% DEX Mid Term Total Return Bond Index Portfolio Manager | Matthew Wood & Tim Logie Jun-13 As at September 30, 2014 Nov-13 Apr-14 Sep-14 NAVPU - Class B $11.7990 NAVPU - Class F $11.9042 Minimum Investment $5,000 (initial) $2,000 (subsequent) Fund Fact Sheet ACTIVE UNCONSTRAINED OPPORTUNISTIC ABSOLUTE VERTEX ONE A s s e t M a n a g e m e n t I n c. Portfolio Manager - Matthew Wood Mr. Wood is a founder and a director of Vertex One. He has overall responsibility for the investment and trading decisions affecting the Vertex Managed Value Portfolio, Vertex Value Fund and Vertex Enhanced Income Fund. Mr. Wood has 25 years of experience in dealing with equities, fixed income and derivatives. He began his career as an analyst, and subsequently became a financial advisor with Royal Trust. He was a portfolio manager with HSBC Asset Management before forming Vertex One. Mr. Wood holds the professional designation of Chartered Financial Analyst (CFA) and is a member of the Institute of Chartered Financial Analysts. A AB BB+ BB BBBB+ BBB BBBBBB+ CCC CCCCCC+ Portfolio Manager - Tim Logie 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. While at TD, Mr. Logie worked with Bond Options and Interest Rate Derivatives before becoming TD's Energy Derivative trader. 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. Latest Commentary The bond portfolio continued to perform well as we identified some favourable investment themes. Early in the quarter we came to the conclusion that the US energy renaissance was finally upon us and that US energy bonds were being mispriced. The risk/reward was skewed in our favour. Reservoirs were to the point where companies understood how many fracs they needed, how many pounds per frac and how long each horizontal well needed to be. It was no longer a science experiment but a cookie-cutter operation, bringing the risk curve way down. Technology was also helping improve companies cost curves. As a result, the time-perwell and cost-per-well were decreasing while the internal rate-of-return per well was going up. We dove in and added an 8% weight in select US energy bonds to the portfolio. Less than a few weeks later, the sector started to move and we have tightened nicely since. Historical Monthly Performance 0.19% 0.44% 61.16% 7.17% 3.26% 1.93% 2.41% 1.84% 2.53% 1.00% 0.62% 3.78% 4.38% 7.26% Ave ra ge: Preferred (12.62%) Cash (2.51%) Fixed Income CAD (10.40%) Foreign Equities (15.52%) Canadian Equities (7.69%) Fixed Income USD (52.17%) B Total Cumulative Return of $100,000 Geographic Allocation United States 80.76% $160,000 Canada 19.24% $150,000 Statistics Fund Benchmark Standard Deviation 7.01% 3.09% Largest monthly gain 4.11% 2.38% Largest monthly loss -5.25% -2.58% % positive months 70.49% 68.85% $150,836 $140,000 $130,000 $124,571 $120,000 $110,000 $100,000 Enhanced Income Fund Benchmark Corporate Profile Jan Feb Mar Apr May Jun 2014 0.57% 2.21% 0.64% 0.54% 1.33% 1.16% -0.54% 2013 2.71% 1.40% 1.11% 1.16% 1.15% -1.54% 1.22% -0.58% 0.82% 2012 2.87% 2.60% 0.67% -0.06% -1.77% 0.28% 2011 2.23% 1.76% 0.65% 0.54% -0.27% -2.03% -0.79% -4.70% -5.25% 4.08% -2.24% 0.06% -6.26% 2010 1.71% 1.72% 2.53% 3.07% -4.55% -2.09% 4.11% -1.25% 4.01% 2009 Asset Allocation Credit Breakdown Jul 2.04% Aug Sep Oct Nov Dec 1.28% -2.73% 1.26% 1.43% Year 4.46% 1.53% 0.79% 1.05% 11.32% 1.32% 0.00% 1.19% 12.38% 2.66% -0.42% 3.67% 15.78% -0.06% 0.34% 2.38% 3.59% 6.36% 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 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 Enhanced Income 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.