Lysander-Canso Corporate Value Bond Fund - Series A5
Fund Code: LYZ801A5
- Portfolio Manager: Canso Investment Counsel Ltd.
- As of June 30, 2018
- Fund Category: Fixed Income
- Benchmark: FTSE TMX All Corporate Bond Index1
The fund employs a deep value investment strategy with an unrestricted mandate both geographically and by quality. It is primarily a fixed income fund, but can occasionally invest in equities.
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. 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 enables Canso to buy securities when they are out of favour and priced at a discount to their intrinsic value.
- Long Term Capital Growth - Manager is focused on long term capital growth, with returns consisting of income and some capital gains primarily through investing in corporate bonds of developed markets.
- Adaptable to Market Conditions - Portfolio is unconstrained from both a duration and credit perspective, allowing the manager the flexibility to position the portfolio according to market conditions. Mandate is benchmark agnostic.
- 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 A5
|1 Month||3 Months||YTD||1 Year||3 Year
|Series Inception Date||December 31, 2014|
|Fund AUM||$2.3 Billion|
|MER (As of Dec 31, 2017 - audited)||1.51%|
|Minimum Initial Investment||$5,000|
|Minimum Subsequent Investment||$100|
Calendar Year Returns - Series A5
Top 10 Holdings
|Security||% of Fund||Rating|
|BMO CB FRN Feb 1, 2023 (3M CDOR + 19)||9.2%||AAA|
|BNS FRN Apr 2, 2020 (Q CDOR +18)||8.6%||A+|
|TD Bank CB 1.68% Jun 8, 2021||5.0%||AAA|
|Lloyds Bank PLC FRN Jul 11, 2023 (3M CDOR + 55)||4.3%||A+|
|RBC CB FRN Mar 23, 2020 (3M CDOR + 36)||4.0%||AAA|
|Enbridge Inc. FRN May 24, 2019 (Q CDOR +59)||3.8%||BBB+|
|RBC CB 1.4% Apr 26, 2019||2.7%||AAA|
|Canada T-Bill Aug 23, 2018||2.7%||AAA|
|TD CB FRN Jun 28, 2023 (3M CDOR + 31)||2.7%||AAA|
|RBC FRN Feb 11, 2020 (3M CDOR + 54)||2.0%||AA-|
|Number of Securities||139|
|Number of Issuers||45|
|Average Term to Maturity (Years)||4.5|
|Average Duration (Years)||1.5|
|Average Coupon (%)||2.7%|
|Yield to Maturity (%)||2.9%|
|Current Yield (%)||2.8%|
|Average Credit Quality2||A+|
Credit Quality Breakdown (%)2
|AA & Higher||40.4%|
|BB & Lower||10.5%|
|Distribution Frequency: Monthly|
|Most Recent Distribution per Unit: $0.04166|
|12-Month Trailing Distribution Yield: 7.3%|
|Next Record Date: Jul 13, 2018; Aug 14, 2018; Sep 14, 2018|
|Next Distribution Date: Jul 16, 2018; Aug 15, 2018; Sep 17, 2018|
*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 Corporate Value Bond 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. 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. The actual distribution rates are fixed on an annual basis of 5% for this series based on the original issue price of $10.00 per unit. 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.