Lysander-Canso Balanced Fund - Series A

Fund Code: LYZ800A

  • Portfolio Manager: Canso Investment Counsel Ltd.
  • As of June 30, 2018
  • Fund Category: Balanced
  • Benchmark: 50% FTSE TMX All Corporate Bond Index and 50% MSCI All Country World (CAD) Index1
Investment Focus

The Fund seeks to provide capital growth while moderating equity volatility by investing in a diversified portfolio of equities and bonds. It is unrestricted in both credit quality and geographic allocation.

Risk Tolerance
Low
Medium
High
Why Invest In This Fund

Established in 1997, Canso is an independent firm focused on bottom up security selection. Proprietary research developed over multiple market cycles guides the investment of over $24.5 billion in AUM.

Each security is assessed on its own merits using bottom-up, fundamental research. For debt securities, Canso uses its proprietary Maximum Loss grade, where the max loss quantifies recovery value in the event of a default. The greater the potential downside, the lower the portfolio weight. Canso believes in concentrating their best ideas and having high conviction portfolios with limited holdings.

This independent credit expertise and successful investment management experience enables Canso to buy securities when they are out of favour and priced at a discount to their intrinsic value.

  • Long Term Capital Growth - Concentrated, high-conviction portfolio of value oriented global debt and equity securities that the manager has identified as trading at a substantial discount to their intrinsic value.
  • Active Management - The portfolio’s neutral mix is 50/50, with the latitude to be within +/- 25% of the default asset mix allowing the manager the flexibility to position the portfolio according to market conditions.
  • Proven Investment Expertise - Large investment team with experienced credit specialists with an expertise in determining default risks and recovery values of issuers to identify opportunities. The continuity of the team has contributed to the successful management of investor portfolios over different market cycles.
Compound Returns - Series A
1 Month 3 Months YTD 1 Year 3 Year
(Annualized)
5 Year
(Annualized)
Since Inception
(Annualized)
0.8% 2.4% 4.3% 13.9% 4.1% 10.2% 11.3%
Fund Facts
Series Inception Date December 28, 2011
Currency CAD
Fund AUM $40.7 Million
NAVPU $17.17
Management Fee 1.50%
MER (As of Dec 31, 2017 - audited) 1.83%
Minimum Initial Investment $5,000
Minimum Subsequent Investment $100
Liquidity Daily
RRSP Eligible Yes
Asset Mix
Asian Equity 3.1%
Canadian Equity 43.2%
Canadian Fixed Income 26.4%
Cash & Equivalents -0.3%
European Equity 7.4%
Foreign Fixed Income 9.8%
US Equity 10.4%
Calendar Year Returns - Series A
Geographic Breakdown
geo
Canada 64.7%
South America 0.0%
Other 0.0%
USA 21.3%
Europe 11.0%
Australia 0.0%
Asia 3.2%

Equity

Top 10 Equity Holdings
Equities (64.1% of the Fund) % of Equity
Yellow Pages Limited 12.5%
Purch Series C Preferred Share 7.2%
Maxar Technologies Ltd. 7.2%
Second Cup ltd. 6.3%
Bombardier Inc. 5.3%
Apple Inc. 5.0%
Nintendo Co Ltd 4.9%
Royal Bank of Scotland Group PLC - London 4.3%
Empire Co LTD Class A 4.2%
Nutrien Ltd. 4.2%
Total 61.1%
Portfolio Characteristics
Number of Securities 26
Dividend Yield 0.9%

Fixed Income

Top 10 Fixed Income Holdings
Fixed Income (36.2% of the Fund) % of Fixed Income Rating
TD Bank FRN Jul 31, 2019 (Q CDOR +5) 11.0% AA-
BMO CB FRN Feb 1, 2023 (3M CDOR + 19) 10.3% AAA
Apple Inc. 2.513% Aug 19, 2024 6.6% AA+
RBC FRN Feb 11, 2020 (3M CDOR + 54) 6.4% AA
RBC CB FRN Mar 23, 2020 (3M CDOR + 36) 4.1% AAA
Shaw Communications Inc. 6.75% Nov 9, 2039 3.8% BBB-
The Walt Disney Co. 2.758% Oct 7, 2024 3.8% A
MCAP Service NHA MBS FRN (98001252) July 1, 2020 (M CDOR+35) 3.3% AAA
Lloyds Bank PLC FRN Jul 11, 2023 (3M CDOR + 55) 3.3% A+
Purch 3% May 22, 2022 2.3% NR
Total 54.8%  
Portfolio Characteristics
Number of Securities 77
Number of Issuers 37
Average Term to Maturity (Years) 8.7
Average Duration (Years) 3.9
Average Coupon (%) 3.5%
Yield to Maturity (%) 3.2%
Current Yield (%) 3.7%
Average Credit Quality2 A+
Credit Quality Breakdown (%)2
AA & Higher 53.2%
A 17.5%
BBB 18.9%
BB & Lower 7.5%
Not Rated 2.9%
Distributions
Distribution Frequency: Quarterly
Most Recent Distribution per Unit: $0.0000
12-Month Trailing Distribution Yield: 0.0%
Next Record Date: September 20, 2018
Next Distribution Date: September 21, 2018
Distributions ($)/Unit3 YTD* 2017 2016 2015 2014 2013 2012
Total Distributions - 0.0210 0.5712 0.7556 0.0384 0.0313 0.0536
Interest   --- 0.0004 --- --- --- 0.0097
Dividends   0.0191 0.0915 0.0218 0.0399 0.0313 0.0439
Capital Gains   0.0019 0.4799 0.7338 --- --- ---
Withholding Tax   --- (0.0006) --- (0.0015) --- ---

*The final tax character will be determined based on the Fund’s tax year end information

See the Simplified Prospectus for more details on the Lysander-Canso Balanced Fund ("the Fund"). This document is not an invitation to invest in the Fund, nor does it constitute a public offering of sale. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. The indicated rates of return are based on calculated net asset values per unit, which are net of management fees, operating expenses, and applicable taxes. These returns include changes in unit value and reinvestment of all distributions and do not take into account certain fees such as redemption fees or optional charges or income taxes payable by any securityholder that would have reduced returns. Mutual funds are not guaranteed or insured, their values change frequently and past performance may not be repeated. 1Source: FTSE TMX Global Debt Capital Markets. Copyright © FTSE TMX Global Debt Capital Markets. All rights reserved. Copyright © 2018 MSCI Inc. All rights reserved. 2Fixed income securities unrated by external agencies are assigned an internal Canso rating for Average Credit Quality. 3Distributions are based on the actual number of units outstanding at the relevant time. Distributions are paid in cash or reinvested in additional units, or both. If the series’ net income/capital gains is less than the amounts distributed in the year, the distribution will include a return of capital. In these circumstances, if an investor elects to receive their distributions in cash and not reinvest distributions, it is expected that the value of their investment will decline over time. Distributions are not an indication of performance, rate of return or yield. ®Lysander Funds is a registered trademark of Lysander Funds Limited.