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Pender Enlargement Fund : Q3 2022 – Quarterly MD&A

MANAGEMENT’S DISCUSSION & ANALYSIS

PENDER GROWTH FUND INC.

3 months and 9 months ended September 30, 2022

PENDER GROWTH FUND INC.

September 30, 2022

TABLE OF CONTENTS

Web page

INTRODUCTION……………………………………………………………………………………………………………………….

1

Warning Referring to Ahead-Having a look Statements ………………………………………………………………………..

1

Industry Technique …………………………………………………………………………………………………………………..

2

Non-IFRS Measures………………………………………………………………………………………………………………..

2

Possibility Components……………………………………………………………………………………………………………………………

4

Contemporary Traits ……………………………………………………………………………………………………………..

6

Outlook ………………………………………………………………………………………………………………………………….

9

Portfolio of Investments………………………………………………………………………………………………………….

10

OVERALL PERFORMANCE AND DISCUSSION OF OPERATIONS ……………………………………………

14

SELECTED FINANCIAL INFORMATION …………………………………………………………………………………..

15

Monetary Highlights ……………………………………………………………………………………………………………….

22

Monetary Situation………………………………………………………………………………………………………………..

22

Money Flows…………………………………………………………………………………………………………………………..

24

Shareholder Task ………………………………………………………………………………………………………………

24

SUMMARY OF QUARTERLY RESULTS …………………………………………………………………………………..

25

PAST PERFORMANCE……………………………………………………………………………………………………………

27

SUMMARY OF INVESTMENT PORTFOLIO ………………………………………………………………………………

28

DIVIDEND POLICY………………………………………………………………………………………………………………….

29

OUTSTANDING SHARE DATA ………………………………………………………………………………………………..

29

TRANSACTIONS BETWEEN RELATED PARTIES…………………………………………………………………….

29

LIQUIDITY AND CAPITAL RESOURCES ………………………………………………………………………………….

30

COMMITMENTS AND CONTINGENCIES ………………………………………………………………………………….

31

OFF-BALANCE SHEET ARRANGEMENTS ………………………………………………………………………………

31

CRITICAL ACCOUNTING ESTIMATES …………………………………………………………………………………….

31

CHANGES IN ACCOUNTING POLICIES …………………………………………………………………………………..

32

FUTURE CHANGES IN ACCOUNTING POLICIES……………………………………………………………………..

32

PENDER GROWTH FUND INC.

September 30, 2022

INTRODUCTION

This Control’s Dialogue and Research (“MD&A”) dated November 23, 2022 gifts a evaluate of the unaudited monetary effects for Pender Enlargement Fund Inc. (“Pender” or the “Corporate”) for the 3 months and 9 months ended September 30, 2022 and assesses elements that can impact long term effects. The monetary situation and result of operations are analyzed and demanding elements that affected Pender’s statements of economic place, statements of complete source of revenue, statements of adjustments in fairness and statements of money flows are mentioned.

The MD&A is supplementary data and will have to be learn along side Pender’s unaudited condensed meantime monetary statements and the notes thereto for the 3 months and 9 months ended September 30, 2022 (the “Condensed Period in-between Monetary Statements”) and Pender’s audited monetary statements and the notes thereto for the 12 months ended December 31, 2021 (the “Annual Audited Monetary Statements”). All quantities proven on this MD&A are offered in Canadian bucks except differently specified.

The MD&A has been ready by way of PenderFund Capital Control Ltd. (the “Supervisor”) and is the accountability of control. The Board of Administrators carries out its accountability for the evaluate of this disclosure thru its Audit Committee, which is made up of 3 administrators, a majority of whom are unbiased administrators. The Audit Committee has reviewed and beneficial approval of the MD&A by way of the Board of Administrators. The Board of Administrators has licensed this disclosure.

Further details about Pender is to be had at the SEDAR website online at www.sedar.com

Warning Referring to Ahead-Having a look Statements

This MD&A might comprise forward-looking statements in regards to the Corporate, together with its technique, possibilities and extra movements. Ahead-looking statements come with statements which can be predictive in nature, that rely on or confer with long term occasions or stipulations, or that come with phrases reminiscent of “expects”, “anticipates”, “intends”, “plans”, “believes”, “estimates”, or destructive variations thereof and an identical expressions.

As well as, any remark made relating to long term efficiency, methods or possibilities and imaginable long term Corporate motion could also be a forward-looking remark. Ahead-looking statements are in line with present expectancies and projections about long term occasions and are inherently topic to dangers, uncertainties and assumptions in regards to the Corporate and financial elements, amongst different issues. Ahead-looking statements on this MD&A come with, with out limitation: statements with admire to the longer term efficiency of the Corporate and the corporations by which it invests (each and every a “Portfolio Corporate”); the longer term affect on markets and economies of measures taken by way of central banks to keep watch over inflation, and the longer term affect of geopolitical occasions, world well being pandemics and different crises; focus of the funding portfolio, long term financial and marketplace stipulations, together with mergers and acquisitions (“M&A”) and preliminary public providing (“IPO”) marketplace stipulations, long term realization of price of and/or transactions involving its present Portfolio Corporations (together with public checklist or third-party acquisitions of such Portfolio Corporations) or doable long term Portfolio Corporations or different long term transactions, and/or proposed transactions; the Corporate’s funding manner, goals and methods, together with its center of attention on particular sectors; the structuring of its investments and its expectancies in regards to the efficiency of positive sectors.

Ahead-looking statements aren’t promises of long term efficiency and exact occasions and effects may just fluctuate materially from the ones expressed or implied in any forward-looking statements. Whilst the Supervisor considers its expectancies, assumptions and projections to be cheap in line with data recently

1

PENDER GROWTH FUND INC.

September 30, 2022

to be had to it, no assurance may also be for the reason that its ideals and assumptions will end up to be proper. Any choice of necessary elements may just give a contribution to those variations, together with however no longer restricted to: the power of the Corporate to supply further investments; dangers associated with the era sector and the prime percentage of businesses from this sector within the portfolio; the power to do away with investments in Portfolio Corporations all of a sudden or at beneficial costs; the chance of the usage of leverage; the hazards inherent in a concentrated portfolio, the provision of an energetic buying and selling marketplace for the Corporate’s Elegance C stocks; common financial, political and public marketplace elements in North The usa and across the world; hobby and foreign currency charges; world fairness and capital markets; trade pageant; technological trade; adjustments in govt laws; sudden judicial or regulatory lawsuits; and the affect of inflation, larger rates of interest, measures taken by way of central banks, geopolitical occasions, world pandemics and different catastrophic occasions.

We rigidity that the above-mentioned listing of necessary elements isn’t exhaustive. We inspire you to imagine those and different elements moderately ahead of making any funding choices and we urge you to steer clear of hanging undue reliance on forward-looking statements. Additional, except for as could also be required below appropriate regulation, the Supervisor has no particular goal of updating any forward-looking statements, whether or not because of new data or long term occasions, or differently, previous to the discharge of the following MD&A.

Industry Technique

Pender is an funding entity that trades at the TSX Project Change (the “TSXV”). Its goal is to supply its buyers with long-term capital appreciation. Pender invests opportunistically in a concentrated portfolio of securities of each private and non-private corporations (each and every a “Portfolio Corporate”). In its quest for long-term capital appreciation, the Supervisor totally evaluates the long-term trade possibilities of each and every doable Portfolio Corporate and works to know its present price in addition to its price over the long- time period funding horizon. This long-term center of attention is a number one consider Pender’s funding technique, irrespective of whether or not a Portfolio Corporate is publicly indexed or personal. Pender may additionally spend money on particular eventualities, as an example, the usage of to be had money to make the most of alternatives with horny inner charges of go back. Pender’s technique is to shop for securities that it believes are mispriced and that experience the possible to compound capital, both throughout the convergence from present marketplace value to intrinsic price or throughout the expansion of intrinsic price through the years, or thru a mix of each.

Pender’s mandate supplies it with the versatility to spend money on securities that it believes to have the absolute best doable risk-adjusted returns on the time of funding. It is very important notice that Pender defines threat as an enduring lack of capital, which differs from volatility threat. This versatile mandate lets in Pender to make the most of marketplace cycles and other safety sorts that it believes will have the possible to profit its shareholders. Marketplace cycles may give alternative as, from time-to-time, other industries, corporate levels or safety sorts might transform out of favour and attractively priced. Pender might spend money on each newly established and later-stage companies throughout a big selection of industries and safety sorts, relying at the alternative. Nearly all of Pender’s investments shall be in not unusual fairness or most popular fairness securities, however it’s going to make smaller allocations to convertible debt, company debt or different securities.

Non-IFRS Measures

The Corporate prepares and releases Condensed Period in-between Monetary Statements and Annual Audited Monetary Statements in line with IFRS. On this MD&A, we supplement the ones IFRS disclosures with plenty of the important thing signs that we use to judge the efficiency and situation of our trade. Those supplementary key efficiency signs come with Web Belongings, Web Belongings according to Percentage, Control Expense Ratio and Buying and selling Expense Ratio. Those aren’t known below IFRS nor do they’ve a

2

PENDER GROWTH FUND INC.

September 30, 2022

usual which means prescribed by way of IFRS. We provide them to give a boost to the reader’s skill to judge the Corporate. They might not be without delay related to an identical measures utilized by different corporations and readers are cautioned to not view the non-IFRS measures as possible choices to IFRS measures.

Web Belongings

The Corporate makes use of two monetary measures which can be personally known below IFRS, property and liabilities, to calculate Web Belongings, which is a non-IFRS measure. The calculation of Web Belongings as at September 30, 2022 and December 31, 2021 is gifted within the following desk:

Web Belongings

September 30, 2022

December 31, 2021

Belongings

$

86,449,767

$

226,510,729

LESS: Liabilities

7,144,272

27,867,074

EQUALS Web Belongings

$

79,305,495

$

198,643,655

Web Belongings according to Percentage

The Corporate makes use of 3 monetary measures which can be personally known below IFRS, property, liabilities and choice of stocks remarkable, to calculate Web Belongings according to Percentage, which is a non-IFRS measure. The calculation of Web Belongings according to Percentage, as at September 30, 2022 and December 31, 2021 is gifted within the following desk:

Web Belongings according to Percentage

September 30, 2022

December 31, 2021

Belongings

$

86,449,767

$

226,510,729

LESS: Liabilities

7,144,272

27,867,074

EQUALS Web Belongings

$

79,305,495

$

198,643,655

DIVIDED BY Collection of Stocks

Exceptional

7,582,329

7,616,529

EQUALS Web Belongings according to Percentage

$ 10.46

$ 26.08

Control Expense Ratio

The Corporate makes use of Control Expense Ratio (“MER”), a non-IFRS measure, to constitute the overall quantity of running bills, together with control charges, gross sales taxes and hobby however except efficiency charges web of charges waived/bills absorbed by way of the Supervisor, contingent bills, company taxes, fee and different portfolio transaction prices, (in combination, the “MER Prices”) this is borne by way of the Elegance C shareholders. The MER is an annualized proportion calculated by way of dividing overall MER Prices by way of the common Web Belongings.

Buying and selling Expense Ratio

The Corporate makes use of Buying and selling Expense Ratio (“TER”) a non-IFRS measure, to constitute the overall quantity of commissions and different portfolio transaction prices (the “TER Prices”) borne by way of the Elegance C shareholders. The TER is an annualized proportion calculated by way of dividing overall TER Prices by way of the common Web Belongings.

It will have to be famous that the Corporate extensively utilized two further non-IFRS measures, Reporting NAV and Reporting NAV according to Percentage for a time frame, and overall shareholders’ fairness that was once calculated below IFRS for monetary reporting functions differed from the per month reported web asset price according to proportion the place Reporting NAV was once offered, as described within the “Contemporary Traits” segment on web page 6 of this MD&A.

3

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Disclaimer

Pender Enlargement Fund Inc. printed this content material on 24 November 2022 and is simply answerable for the guidelines contained therein. Disbursed by way of Public, unedited and unaltered, on 25 November 2022 00:03:09 UTC.

Publicnow 2022

All information about PENDER GROWTH FUND INC.

Gross sales 2021 169 M
127 M
127 M
Web source of revenue 2021 152 M
114 M
114 M
Web money 2021 5,01 M
3,76 M
3,76 M
P/E ratio 2021 0,90x
Yield 2021
Capitalization 47,8 M
35,8 M
35,8 M
EV / Gross sales 2020 1,90x
EV / Gross sales 2021 0,78x
Nbr of Workers
Unfastened-Drift 92,1%

Chart PENDER GROWTH FUND INC.

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Pender Growth Fund Inc. Technical Analysis Chart | MarketScreener

Source of revenue Remark Evolution

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