Lysander-Canso Balanced Fund - Series F

Fund Code: LYZ800F

  • Portfolio Manager: Canso Investment Counsel Ltd.
  • As of June 30, 2019
  • Fund Category: Balanced
  • Benchmark: 50% FTSE Canada 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 $32.5 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 F
1 Month 3 Months YTD 1 Year 3 Year
(Annualized)
5 Year
(Annualized)
Since Inception
(Annualized)
2.1% 1.7% 6.8% -9.3% 8.2% 3.0% 9.0%
Fund Facts
Series Inception Date December 23, 2011
Currency CAD
Fund AUM $29.9 Million
NAVPU $15.81
Management Fee 0.75%
MER (As of Dec 31, 2018) 1.03%
Minimum Initial Investment $1,000
Minimum Subsequent Investment $100
Liquidity Daily
RRSP Eligible Yes
Asset Mix
Asian Equity 0.0%
Canadian Equity 36.9%
Canadian Fixed Income 33.3%
Cash & Equivalents 0.1%
European Equity 0.0%
Foreign Fixed Income 2.2%
US Equity 0.0%
Calendar Year Returns - Series F
Geographic Breakdown
geo
Canada 54.8%
South America 0.0%
Other 0.3%
USA 25.5%
Europe 14.9%
Australia 0.0%
Asia 4.5%

Equity

Top 10 Equity Holdings
Equities (68.5% of the Fund) % of Fund
General Electric 7.5%
Yellow Pages Limited 4.4%
Maxar Technologies Ltd. 4.2%
Nintendo Co Ltd 3.8%
Bombardier Inc. 3.7%
SNC Lavalin 3.7%
Apple Inc. 3.7%
Second Cup ltd. 3.6%
Royal Bank of Scotland Group PLC - London 3.1%
Enbridge Inc. 2.8%
Total 40.5%
Portfolio Characteristics
Number of Securities 34
Dividend Yield 1.3%

Fixed Income

Top 10 Fixed Income Holdings
Fixed Income (31.5% of the Fund) % of Fund Rating
Apple Inc. 2.513% Aug 19, 2024 2.0% AA+
TWDC Enterprises 18 Corp. 2.758% Oct 7, 2024 1.9% A
Shaw Communications Inc. 6.75% Nov 9, 2039 1.8% BBB-
Lloyds Bank PLC FRN Jul 11, 2023 (3M CDOR + 55) 1.6% A+
MCAP Service NHA MBS FRN (98001252) July 1, 2020 (M CDOR+35) 1.3% AAA
AT&T Inc. 5.10% Nov 25, 2048 1.0% BBB
Eurofima 4.55% Mar 30, 2027 1.0% AA+
AT&T Inc. 4.85% May 25, 2047 1.0% BBB
Strait Crossing Dev. Inc. (amort) 6.17% Sep 15, 2031 1.0% BBB-
Ford Credit Canada Co. FRN Jan 10, 2022 (3M CDOR + 303) 0.9% BBB
Total 13.5%  
Portfolio Characteristics
Number of Securities 77
Number of Issuers 63
Average Term to Maturity (Years) 11.7
Average Duration (Years) 6.0
Average Coupon (%) 4.6%
Yield to Maturity (%) 3.5%
Current Yield (%) 4.2%
Average Credit Quality2 A-
Credit Quality Breakdown (%)
AA & Higher 28.1%
A 21.8%
BBB 37.6%
BB & Lower 9.1%
Not Rated 3.5%
Distributions
Distribution Frequency: Quarterly
Most Recent Distribution per Unit: $0.0932
12-Month Trailing Distribution Yield: 9.8%
Next Record Date: September 26, 2019
Next Distribution Date: September 27, 2019
Distributions ($)/Unit3 YTD* 2018 2017 2016 2015 2014 2013 2012
Total Distributions 0.2072 1.4407 0.1465 0.7799 0.9180 0.1036 0.1173 0.1175
Interest   0.0136 - 0.0005 - --- 0.0076 0.0258
Dividends   0.1956 0.1336 0.1250 0.0265 0.1078 0.1097 0.0590
Capital Gains   1.2376 0.0129 0.6553 0.8915 --- - 0.0327
Withholding Tax   (0.0062) - (0.0009) - (0.0042) - -

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

Lysander Funds Limited is the investment fund manager of Lysander-Canso Balanced Fund (the “Fund”). This document is not an invitation to invest in the Fund and does not constitute a public offering of sale. Purchases in the Fund can only be made through an Investment Professional on the terms in the Fund’s offering document by eligible investors. Each purchaser of units in a fund may have statutory or contractual right of action. 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 historical annual compounded total returns including changes in unit value and reinvestment of all distributions and do not take into account sales, redemption, distribution 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 Canada Global Debt Capital Markets. Copyright © FTSE Canada Global Debt Capital Markets. All rights reserved. Copyright © 2019 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.