Total Modified Duration

1.77

Since Inception Return

6.19%

Standard Deviation

7.17%

Performance (Net of fees and includes reinvested distributions)

Investment Objectives

Investment Strategy

5-Year Return

5.18%

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.

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.

Cumulative Return Comparison Growth of $1,000 Since Inception

Firm Assets

Fund Assets

Type of Fund

Administration/Custodian

Trustee

Inception Date

Auditor

Fund Codes

RSP/TFSA Eligible

Performance Fee

Management Fee

Distribution

NAVPU - Class F

Minimum Investment

Pricing Schedule

Offer Document

Lock up

Redemption Fee

Portfolio Manager | Matthew Wood, Tim Logie & Emily Wheeler Fund Fact Sheet

VERTEX ENHANCED INCOME FUND

$1.53 Billion

$101 Million

North American Income

CIBC Mellon

CIBC Mellon

September 21, 2009

PriceWaterhouseCoopers

VRT 700(B), VRT 701(F)VRT 702 (Low Load)

Yes

20% of the amountexceeding daily Benchmark

B: 1.5% F: 0.75%

Monthly

$9.6747

Daily

Simplified Prospectus

No

2% fee within 30 days of purchase

$5,000 (initial)$50.00 (subsequent)

Not Your Average Income Fund

As at January 31, 2017

Fund Benchmark1 month 1.72% 1.09%3 month 7.08% 2.11%YTD 1.72% 1.09%1 year 20.22% 10.53%3 year 1.33% 4.03%5 year 5.18% 3.37%Since Inception 6.19% 4.00%

Issuer Name Country Sector WeightPNC Financial Financial Services 3.10%USB Realty Corp. United States Real Estate 2.73%Taseko Mines 2.63%IAMGOLD Canada Mining 2.60%Cenveo Corporation United States Printing 2.91%

Example Holdings

Benchmark: 20% S&P/TSX Preferred Share Index, 20% S&P/TSX Composite Total Return Index, 60% DEX Mid Term Total Return Bond Index

A s s e t M a n a g e m e n t I n c.VERTEX ONE

NAVPU - Class B $9.6751Mining

United States

Canada

Vertex Enhanced Income Fund *Benchmark

Jan,13 Jan,17May,10 Sep,11 May,14 Sep,15

1000

1200

1400

1600

800

ACTIVE UNCONSTRAINED OPPORTUNISTIC ABSOLUTE

Total Cumulative Return of $100,000

Suite 3200, 1021 West Hastings St, Vancouver, BC, Canada V6E 0C3Phone: 604-681-5787 Toll Free: 866-681-5787 Fax: 604-681-5146Email: invest@vertexone.com Website: www.vertexone.com

Dealer Services

Vertex One Head Office

CIBC Mellon Dealer ServicesPhone: 416-643-6509 Toll Free: 866-885-7505

Credit Breakdown Asset Allocation

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.

This statistical information is intended to provide you with information about the Vertex Enhanced Income Fund. Advertised performance is based on Class F 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.

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 deriva-tives. 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 Chartered Financial Analyst (CFA) designation and is a member of the CFA Institute and CFA Society of Vancouver.

Portfolio Manager - Matthew Wood

Portfolio Manager - Tim LogieMr. 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 Chartered Financial Analyst (CFA) designation and is a member of the CFA Institute and CFA Society of Vancouver.

The above provides a strong backdrop for the high-yield bonds in our portfolio. High-yield bonds are “risk-on” assets. An environment in which companies are raising money is indicative of a market that loves high-yield. As an asset class, high-yield performed well over the last quarter and we expect it to continue moving up as companies use free cash flow to pay down debt.

Fund BenchmarkStatisticsStandard Deviation 7.17% 3.53%

Largest monthly gain 4.43% 3.42%

Largest monthly loss -5.18% -2.58%

% positive months 65.17% 67.42%

United States 63.45%

Canada 29.72%

Geographic Allocation

Corporate ProfileHistorical Monthly Performance

Preferred(3.96%)

Foreign Equities(18.30%)

Canadian Equities (3.48%)

Fixed Income USD(60.60%)

Fixed Income CAD (12.12%)

A s s e t M a n a g e m e n t I n c.VERTEX ONE

Europe 6.83%

Third Quarter Commentary*Small Issues And Private Notes

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year

2016 -2.83% 14.85%

2015 -1.18% 2.02% -1.22% 1.52% -0.26% -0.77% -2.48% -3.18% -2.97% 1.85% -2.31% -2.93% -11.47%

2014 0.63% 2.28% 0.68% 0.61% 1.39% 1.20% -0.47% 1.35% -2.67% -1.06% -1.05% -1.54% 1.24%

2013 2.78% 1.46% 1.17% 1.24% 0.84% -1.49% 1.27% -0.53% 0.90% 1.61% 0.86% 1.05% 11.71%

2012 2.95% 2.67% 0.74% -0.01% -1.70% 0.35% 2.11% 1.33% 1.49% 1.35% 0.07% 1.27% 13.29%

2011 2.14% 1.82% 0.73% 0.58% -0.19% -1.97% -0.72% -4.63% -5.18% 4.08% -2.17% 0.13% -5.64%

2010 1.74% 1.80% 2.51% 3.08% -4.48% -2.03% 4.18% -1.17% 4.08% 2.73% -0.35% 3.74% 16.57%

-1.04%

Cash(0.31%)

4.43% 2.67%

The Vertex Enhanced Income Fund returned 4.32% for the 3rd quarter, 2016. If you’ve noticed a lot more IPOs in the market these days, you’re not alone. As the market gains an increased sense of security, new issue volume has grown steadily.

1.80% -1.06% 1.48% 0.90% 1.88% 0.71%

After performing poorly in 2015, the equity portion of the portfolio has performed very well in 2016. We retained most of our positions from last year as our assessment was that nothing had changed in the businesses, even though stock prices had declined significantly. We did, however, add positions in both Canadian Western Bank (yielding 3.6%) and CI Financial (yielding 5.5%) subsequent to a fall in their stock prices.

3.00% 2.21%

2017 1.72% 1.72%

$147,580

$133,801

$110,000

$115,000

$120,000

$125,000

$130,000

$135,000

$140,000

$145,000

$150,000

Enhanced Income Fund Benchmark

A 5.08%A- 4.82%

BBB+ 53.2%BBB- 6.59%BB+ 2.36%BB 2.08%BB- 7.8%B+ 0.4%B 1.53%B- 2.71%

CCC+ 2.35%CCC 1.12%CCC- 4.46%NR 5.17%

Average B+