Lysander-Canso Bond Fund - Series A

Fund Code: LYZ804A

  • Portfolio Manager: Canso Investment Counsel Ltd.
  • As of September 30, 2019
  • Fund Category: Fixed Income
  • Benchmark: FTSE Canada Universe Bond Index1
Investment Focus

The Fund invests in high-quality Canadian dollar denominated fixed income securities of Canadian and up to 60% in foreign issuers. Portfolio is able to invest up to 50% in BBB and is unable to purchase a bond rated below BBB-.

Risk Tolerance
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 $32.8 billion in AUM.

Each security is assessed on its own merits using bottom-up, fundamental research. 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.

  • Core Fixed Income Solution - Investment grade corporate bond portfolio that seeks to provide income and preserve capital.
  • Adaptable to Market Conditions - Portfolio has the flexibility to shorten duration and diversify across all geographies while maintaining primarily CAD currency exposure.
  • Proven Management Expertise - Large investment team with experienced credit specialists with an expertise in determining default risks and recovery values of issuers to identify corporate bond 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
5 Year
Since Inception
-0.1% 0.5% 2.7% 2.7% 1.1% 1.4% 2.1%
Fund Facts
Series Inception Date December 28, 2011
Currency CAD
Fund AUM $63.8 Million
NAVPU $10.51
Management Fee 1.15%
MER (As of June 30, 2019 - unaudited) 1.43%
Minimum Initial Investment $1,000
Minimum Subsequent Investment $100
Liquidity Daily
RRSP Eligible Yes
Calendar Year Returns - Series A
Top 10 Holdings
Security % of Fund Rating
BMO CB FRN Feb 1, 2023 (3M CDOR + 19) 7.3% AAA
RBC CB FRN Mar 23, 2020 (3M CDOR + 36) 6.7% AAA
Apple Inc. 2.513% Aug 19, 2024 4.9% AA+
Manufacturers Life Insurance FF 2.64% Jan 15, 2020/2025 4.8% A+
Kraft Canada Inc. FRN July 6, 2020 (Q CDOR +105) 4.2% BBB-
Lloyds Bank PLC FRN Jul 11, 2023 (3M CDOR + 55) 4.1% A+
First National NHA FRN (98003699) Aug 1, 2024 (M CDOR+7) 3.4% AAA
Hwy 407 6.47% July 27, 2029 3.1% A
Met Life Global Funding I 3.107% Apr 16, 2021 3.0% AA-
TD CB FRN Jun 28, 2023 (3M CDOR + 31) 2.9% AAA
Total 44.3%  
Portfolio Characteristics
Number of Securities 69
Number of Issuers 48
Average Term to Maturity (Years) 4.5
Average Duration (Years) 2.4
Average Coupon (%) 3.3%
Yield to Maturity (%) 2.4%
Current Yield (%) 3.0%
Average Credit Quality2 AA-
Geographic Breakdown
Canada 81.3%
South America 0.0%
Other 0.0%
USA 7.8%
Europe 11.0%
Australia 0.0%
Asia 0.0%
Credit Quality Breakdown (%)
AA & Higher 50.5%
A 26.2%
BBB 23.4%
Distribution Frequency: Quarterly
Most Recent Distribution per Unit: $0.0456
12-Month Trailing Distribution Yield: 1.6%
Next Record Date: December 19, 2019
Next Distribution Date: December 20, 2019
Distributions ($)/Unit3 YTD* 2018 2017 2016 2015 2014 2013 2012
Total Distributions 0.1342 0.1372 0.0862 0.0748 0.2416 0.2087 0.1153 0.1374
Interest   0.1372 0.0869 0.0754 0.1586 0.2097 0.1153 0.1325
Dividends   --- --- --- --- --- --- ---
Capital Gains   --- --- --- 0.0838 --- --- 0.0049
Withholding Tax   --- (0.0007) (0.0006) (0.0008) (0.0010) --- ---

*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 Bond 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. 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.