1. October 15, 2015Please see important disclosures at the end of this presentation.www.penderfund.com | penderfund The Pender Credo: What We Are We Are Value Investors We Are Patient We Are Concentrated We Are Contrarian We Are Focused on Owning Businesses, Not Trading Stocks We Are Unconventional We Are Aligned Because We Are Investors In the Fund Too

2. October 15, 2015Please see important disclosures at the end of this presentation.www.penderfund.com | penderfund We Are Value Investors “ All intelligent investing is value investing - acquiring more than you are paying for. You must value the business in order to value the stock.” -Charlie Munger, Berkshire Hathaway “Market commentators and investment managers who glibly refer to growth and value styles as contrasting approaches to investment are displaying their ignorance, not their sophistication.” -Warren Buffett

3. October 15, 2015Please see important disclosures at the end of this presentation.www.penderfund.com | penderfund We Are Patient “When it comes to predicting the market, the important skill is not listening, but snoring. The trick is not to learn to trust your gut feelings, but rather to discipline yourself to ignore them. Stand by your stocks as long as the fundamental story of the company hasn't changed.” -Peter Lynch "Value investors are not concerned with getting rich tomorrow. People who want to get rich quickly will not get rich at all. There is nothing wrong with getting rich slowly." - Warren Buffett, CEO/Chairman - Berkshire Hathaway

4. October 15, 2015Please see important disclosures at the end of this presentation.www.penderfund.com | penderfund We Are Concentrated "We believe that a policy of portfolio concentration may well decrease risk if it raises, as it should, the intensity with which an investor thinks about a business and its economic characteristics before buying into it." -- Warren Buffett, Berkshire Hathaway “The idea of excessive diversification is madness. Wide diversification, which necessarily includes investment in mediocre businesses, only guarantees ordinary results.” - Charlie Munger, Berkshire Hathaway

5. October 15, 2015Please see important disclosures at the end of this presentation.www.penderfund.com | penderfund We Are Contrarian "The thing I find most interesting about investing is how paradoxical it is: how often the things that seem most obvious – on which everyone agrees – turn out not to be true.” -Howard Marks, Oaktree Capital “ Whenever you find yourself on the side of the majority, it is time to pause and reflect.” - Mark Twain

6. October 15, 2015Please see important disclosures at the end of this presentation.www.penderfund.com | penderfund We Are Focused on Owning Businesses, Not Trading Stocks "Just because the price goes up doesn't mean you're right. Just because it goes down doesn't mean you're wrong. Stock prices often move in opposite directions from the fundamentals but long term the direction and sustainability of profits will prevail.” -Peter Lynch "As an investor, you're looking at what the asset is going to do. As a speculator, you're commonly focusing on what the price is going to do, and that's not our game." -- Warren Buffett

7. October 15, 2015Please see important disclosures at the end of this presentation.www.penderfund.com | penderfund We Are Unconventional “Unconventionality – Along similar lines, there’s the risk of being different. Stewards of other people’s money can be more comfortable turning in average performance, regardless of where it stands in absolute terms, than with the possibility that unconventional actions will prove unsuccessful and get them fired… Concern over this risk keeps many people from superior results, but it also creates opportunities in unorthodox investments for those who dare to be different." -Howard Marks, Oaktree Capital "The conventional view serves to protect us from the painful job of thinking." -- John Kenneth Galbraith

8. October 15, 2015Please see important disclosures at the end of this presentation.www.penderfund.com | penderfund We Are Aligned Because We Are Investors Too “The directors of such [joint-stock] companies, however, being the managers rather of other people’s money than of their own, it cannot well be expected, that they should watch over it with the same anxious vigilance with which the partners in a private co-partnery frequently watch over their own.” - Adam Smith (1776) “As usual in human affairs, what determines the behavior are incentives for the decision maker.” - Charlie Munger, Berkshire Hathaway

9. October 15, 2015Please see important disclosures at the end of this presentation.www.penderfund.com | penderfund How is Pender Different? The Pender “Edge”Typical Short-Term Investors (aka Wall Street) We Are Value InvestorsFocus on Latest Hot Fads, Shun the Cheap and Depressed We Are PatientOver React to Quarterly and Short-Term Results We Are ConcentratedOver Diversification is Surest Path to Mediocrity We Are ContrarianFollow the Mainstream Media We Are Focused on Owning Businesses, Not Trading Stocks High Turnover = Lower Long Term Returns We Are Risk AverseConfuse Price Risk with Business Risk We Are Aligned Because We Are Major Investors In the Fund Too Principal/Agent Conflicts Are Common

10. October 15, 2015Please see important disclosures at the end of this presentation.www.penderfund.com | penderfund Value Investing Illustrated