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.