Pender Growth Fund Provides Financial Highlights and Company Updates
VANCOUVER, British Columbia, May 27, 2025 (GLOBE NEWSWIRE) -- Pender Growth Fund Inc. (the 'Company') today announced its financial and operational results for the three months ended March 31, 2025.
Financial Highlights
Net loss was $6,787,305 for the three months ended March 31, 2025 (March 31, 2024 – net income $12,262,927) due to negative investment performance during the year.
Net loss per Class C common share ('Share') for the three months ended March 31, 2025 was $0.95 (March 31. 2024 – Net income per Share $1.67).
The Company's total shareholders' equity decreased by $7,113,121, from $123,081,507 at December 31, 2024 to $115,968,386 as at March 31, 2025, due to net loss of $6,787,305 primarily a result of negative investment performance, offset by shares repurchased of $325,816 under the Company's Normal Course Issuer Bid ('NCIB').
Shareholders' equity was $16.33 per Share as at March 31, 2025 (December 31, 2024 – $17.25).
7,101,429 shares were outstanding as at March 31, 2025 (December 31, 2024 – 7,133,229), a decrease of 31,800 shares as a result of shares repurchase under the NCIB, which was renewed on February 20, 2025.
At March 31, 2025, 59.6% of the investment portfolio was made up of public companies and 40.4% of private companies and Net Assets were 54.6% publicly listed companies, 37.0% private unlisted companies, and 8.4% cash and other assets net of liabilities.
Management Expense Ratio ('MER') before performance fees was 2.44% for the quarter ended March 31, 2025, 0.69% lower compared to 3.13% in the first quarter of 2024.
PERFORMANCE (Based on Shareholders' Equity)
3 Month
1 Year
3 Year
5 Year
Since Inception
Class C
-5.4%
46.3%
-5.4%
32.0%
20.5%
Portfolio Highlights
Public equity markets saw mixed performance in the first quarter of 2025, taking a breather following a year of impressive results. The S&P/TSX Composite Index gained 1.5% in the quarter, while the S&P/TSX Small Cap Index added 0.9%. Markets in the US slipped in the quarter, with the S&P 500 Index (CAD) down -4.2% and the small cap Russell 2000 Index (CAD) ending -9.4% lower in the quarter.
Equity markets were mixed as investors grew concerned about the aggressive policy shifts of the Trump administration's second term. The rise of protectionism, deregulation and a more disruptive foreign policy stance fueled heightened uncertainty that resulted in lower expectations for economic growth. These uncertainties have raised the prospects of a recession amid weakening consumer sentiment, widespread job cuts and the impact of escalating tariffs. Against these headwinds, the Federal Reserve opted to hold interest rates steady during the quarter at 4.25% to 4.5%. This contrasted with the trend of continued interest rates cuts in Canada, As the Bank of Canada reduced rates by 25bp in January, followed by another 25bp reduction in March. This left the benchmark lending rate at 2.75% at quarter-end and highlighted the softening economic environment in Canada.
We believe that the Company continues to be well-positioned today to pursue its investment objectives and we continue to find attractive investments opportunities as valuations in micro and small cap stocks in North America remain attractive despite the recent rally this year.
Investment results may be affected by future developments and new information that may emerge about broad economic conditions, inflation, central bank measures, geopolitical risks, market risk, unexpected judicial or regulatory proceedings and other global events, factors that are beyond the Company's control.
While macro events have driven investor sentiment, we have remained focused on our bottom-up fundamental research to identify companies that can thrive in a wide range of economic scenarios. We believe that this environment provides compelling opportunities for long-term focused investors and that the Company is well-positioned to continue to pursue its investment objectives.
As always, this quarter we worked closely with our private portfolio companies and certain of our public portfolio companies.
Other Highlights
We continued to acquire shares of the Company in the market under our NCIB because we believe the shares are trading at a discount to their intrinsic value. On February 20, 2025, the Company launched a new NCIB, under which the Company may purchase a maximum of 587,342 shares, or 10% of the Company's public float on launch date, during the one-year period ending February 19, 2026.
We encourage you to refer to the Company's MD&A and quarterly unaudited financial statements for March 31, 2025, the annual audited financial statements for the year-ended December 31, 2024, and other disclosures available under the Company's profile at www.sedarplus.ca for additional information.
About the Company
Pender Growth Fund Inc is an investment firm. Its investment objective is to achieve long-term capital growth. The Company utilizes its small capital base and long-term horizon to invest in unique situations, primarily small cap, special situations, and illiquid public and private companies. The firm invests in public and private companies principally in the technology sector. It trades on the TSX Venture Exchange under the symbol 'PTF' and posts its NAV on its website, generally within five business days of each month end.
Please visit www.pendergrowthfund.com.
For further information, please contact:
Tony Rautava
Corporate Secretary Pender Growth Fund Inc. (604) 653-9625Toll Free: (866) 377-4743Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Information
This news release may contain forward-looking statements (within the meaning of applicable securities laws) relating to the business of the Company and the environment in which it operates. Forward-looking statements are identified by words such as 'believe', 'anticipate', 'project', 'expect', 'intend', 'plan', 'will', 'may', 'estimate' and other similar expressions. These statements are based on the Company's expectations, estimates, forecasts and projections and include, without limitation, statements regarding the Company's decreased portfolio risk and future investment opportunities. 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 Company's annual information form available at www.sedarplus.ca. 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, the Company assumes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.Sign in to access your portfolio
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
New York Times
10 minutes ago
- New York Times
China Rejects Trump's Accusation That It Violated Trade Truce
China said on Monday that the United States had 'severely undermined' the trade truce the two countries reached last month, striking back against President Trump's accusations that it was violating the terms of their agreement. In a statement, China's Ministry of Commerce called Mr. Trump's attacks on social media last week 'baseless.' He had accused Beijing of failing to live up to its end of their trade deal, a 90-day rollback of tariffs and other trade barriers to give the two countries more time to negotiate and prevent an all-out trade war. China's commerce ministry said it had continued to honor its agreement responsibly and accused the United States of 'erroneous practices' by introducing a series of 'discriminatory restrictive measures.' These included restrictions on the sale of chip design software to China and barring American companies from using or financing artificial intelligence chips from the Chinese technology giant Huawei. It also criticized the Trump administration's announcement that it planned to 'aggressively revoke' the visas of Chinese students and that it would enhance scrutiny of all future applications from China, including Hong Kong. 'The U.S. side has unilaterally escalated new economic and trade frictions, exacerbating the uncertainty and instability of bilateral economic and trade relations,' the ministry wrote in its statement. 'Instead of reflecting on its own actions, it has turned the blame onto China.' China said it would take measures to 'safeguard its legitimate rights and interests' if the United States continued to harm Chinese interests. The growing confrontation over the fragile trade truce between the world's two largest economies has raised questions about whether they can strike a permanent accord within the 90-day deadline. The United States has grown increasingly concerned about access to rare earth magnets, which are crucial for producing cars, semiconductors, aircraft and other vital items. China maintains a near monopoly on the production of rare earth metals. American companies' ability to keep factories running could be in jeopardy without a sufficient supply of those magnets. Jamieson Greer, the U.S. trade representative who negotiated the deal along with Treasury Secretary Scott Bessent, said during a Friday appearance on CNBC that China was 'slow-rolling their compliance' and that the flow of some critical minerals has not returned to levels that American officials were expecting. The agreement, announced on May 12, offered a temporary reprieve to the escalating trade tensions between the two largest economies. The United States had pushed tariffs on Chinese imports to 145 percent and China responded by raising import duties on American products to 125 percent. Under the truce, the United States agreed to lower its tariffs to 30 percent, while China cut its import tax to 10 percent for 90 days. Amy Chang Chien contributed reporting from Taipei.
CNBC
18 minutes ago
- CNBC
CNBC Daily Open: It's a dicey matter to play 'chicken' in markets
When threatened, birds puff up their feathers to appear larger than they actually are, and squawk to signal aggression. On Friday, U.S. President Donald Trump suggested he would no longer be "Mr. NICE GUY" to China after the country "totally violated" its trade agreement with America. The same day, Trump said he would raise tariffs on steel imports to 50% from 25%. The escalations follow a détente in May, during which Trump reached a trade deal with the U.K., agreed with Beijing to sharply reduce reciprocal import duties and delayed for more than a month a tariff of 50% on the European Union — two days after announcing it. Those glad tidings lifted stocks. For May, the S&P 500 rose 6.2% and the Nasdaq Composite jumped 9.6%, with both indexes enjoying their best month since November 2023. The Dow Jones Industrial Average gained 3.9% for the month. But the mood among investors might change quickly, depending on communication coming from the White House. The word "chicken" is used as a metaphor for cowardice. In reality, they can be dangerous — there have been reports of humans being killed by Colonel Sanders' favorite bird. Asia markets start June in the redU.S. markets traded mixed Friday. The S&P 500 was flat, the Dow Jones Industrial Average rose 0.13% and the Nasdaq Composite fell 0.32%. Futures tied to the three indexes ticked down Sunday evening stateside. Asia-Pacific stocks fell Monday. Hong Kong's Hang Seng index dropped 1.9% and Japan's Nikkei 225 lost 1.32% at 1:30 p.m. Singapore time. Expected Trump-Xi talkTrade tensions between China and the U.S. are escalating. On Monday, Beijing claimed that the White House's "export control measures" breach the two countries' agreement reached in Geneva, Switzerland, refuting Trump's claim on Friday that China has "TOTALLY VIOLATED" it. That said, reconciliation could happen as Trump and Chinese President Xi Jinping are expected to discuss trade negotiations "this week," U.S. National Economic Council director Kevin Hassett said on Sunday. Trump says he'll double steel tariffsTrump on Friday told steelworkers at U.S. Steel that he will raise import duties on steel to 50% from 25%. The new import duties will start June 4, the president posted on Truth Social. On Saturday, the European Union said it is "prepared to impose countermeasures, including in response to the latest U.S. tariff increase." Even so, "tariffs are not going away," U.S. Commerce Secretary Howard Lutnick said on "Fox News Sunday." Musk cuts himself from DOGEElon Musk bid farewell to his role at the U.S. Department of Government Efficiency Friday. Musk said on Sunday that he doesn't want to "take responsibility for everything the administration's doing," expressing disappointment at the White House's "massive spending bill." Tesla shares lost 14% this year amid Musk's involvement in politics, but gained 22% in May following Musk's April statement he would spend less time at DOGE. Australia's Soul Patts and Brickworks to mergeShares of Australian investment firm Washington H. Soul Pattinson, also known as Soul Patts, spiked more than 15%, and its affiliate Brickworks rocketed over 25% after both companies announced a merger of 14 billion Australian dollars ($9 billion). As part of the deal, a new company listed in Sydney will acquire all outstanding shares of Soul Patts and Brickworks. The merged entity will have holdings across real estate, private equity and credit totaling A$13.1 billion. [PRO] May jobs report in focusThe U.S. nonfarm payrolls report for May, out Friday, will provide more information on how the economy is holding up amid Trump's multiple tariffs —and play a big role in determining whether the May rally in stocks still has legs. Economists expect the number of jobs added in May to dip from April. It misses the forecast, markets could take a downturn as the White House appears to ratchet up its tariff rhetoric. Investors are piling into big, short Treasury bets alongside Warren Buffett Investors always pay close attention to bonds, and what the latest movement in prices and yields is saying about the economy. Right now, the action is telling investors to stick to the shorter-end of the fixed-income market with their maturities. Long-term treasuries and long-term corporate bonds have posted negative performance since September, which is very rare, said Todd Sohn, senior ETF and technical strategist at Strategas Securities, on "ETF Edge." The only other time that's happened in modern times was during the Financial Crisis," he added. "It is hard to argue against short-term duration bonds right now." It would seem that Warren Buffett agrees, with Berkshire Hathaway doubling its ownership of T-bills and now owning 5% of all short-term Treasuries, according to a recent JPMorgan report.
Business Upturn
42 minutes ago
- Business Upturn
India's manufacturing PMI slips to 3-month low in May, employment hits record high
India's manufacturing sector remained in expansion mode in May 2025, although momentum softened compared to April, according to the HSBC India Manufacturing Purchasing Managers' Index (PMI) released by S&P Global. The PMI dipped to 57.6 in May from 58.2 in April — a three-month low — signaling a slower pace of growth in output and new orders. Despite the decline, the reading remained well above the neutral 50-mark and its long-run average of 54.1. According to the HSBC report, while domestic and international demand continued to support business activity, cost inflation, intense market competition, and concerns surrounding the India-Pakistan conflict acted as drags on growth. Manufacturers reported notable increases in selling prices, driven by higher input costs — the steepest seen in nearly a year. One standout in the data was employment. May witnessed the highest rate of job creation since the survey began, with permanent roles rising significantly. Firms also ramped up their input purchases to meet future demand, even as inventory of finished goods fell for the sixth consecutive month. New export orders rose strongly, with firms citing better demand from the US, Europe, Asia, and the Middle East. Despite the challenges, sentiment for future output remained robust, driven by marketing efforts and fresh customer enquiries. Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Economic indicators like PMI are subject to revisions and contextual interpretation. Please consult official sources or financial experts before making business decisions. Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
