Lysander-Canso Corporate Value Bond Fund - Series F

Fund Code: LYZ801F

  • Portfolio Manager: Canso Investment Counsel Ltd.
  • As of March 31, 2019
  • Fund Category: Fixed Income
  • Benchmark: FTSE Canada All Corporate Bond Index1
Risk Tolerance
Investment Focus

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.

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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 $32.2 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 F
1 Month 3 Months YTD 1 Year 3 Year
5 Year
Since Inception
0.5% 2.1% 2.1% 2.3% 5.0% 4.0% 5.7%
Fund Facts
Series Inception Date December 23, 2011
Currency CAD
Fund AUM $2.6 Billion
NAVPU $12.36
Management Fee 0.75%
MER (As of Dec 31, 2018) 0.94%
Minimum Initial Investment $1,000
Minimum Subsequent Investment $100
Liquidity Daily
RRSP Eligible Yes
Calendar Year Returns - Series F
Credit Quality Breakdown (%)
AA & Higher 29.3%
A 12.4%
BBB 39.1%
BB & Lower 16.4%
Not Rated 2.8%
Portfolio Characteristics
Number of Securities 128
Number of Issuers 58
Average Term to Maturity (Years) 5.0
Average Duration (Years) 1.5
Average Coupon (%) 3.9%
Yield to Maturity (%) 3.8%
Current Yield (%) 4.0%
Average Credit Quality2 A-
Top 10 Holdings
Security % of Fund Rating
BMO CB FRN Feb 1, 2023 (3M CDOR + 19) 8.4% AAA
AT&T Inc. FRN (Q LIBOR + 118) Jun 12, 2024 (USD) 6.4% BBB
TD Bank CB 1.68% Jun 8, 2021 5.2% AAA
Bombardier Inc. 7.875% Apr 15, 2027 (USD) 144A 4.9% CCC+
Lloyds Bank PLC FRN Jul 11, 2023 (3M CDOR + 55) 3.9% A+
Ford Credit Canada Ltd. FRN Mar 21, 2024 (3M CDOR + 314) 3.7% BBB
GE Capital Canada 4.60% Jan 26, 2022 3.5% BBB+
Enbridge Inc. FRN May 24, 2019 (Q CDOR +59) 3.4% BBB+
RBC CB FRN Mar 23, 2020 (3M CDOR + 36) 3.2% AAA
TD CB FRN Jun 28, 2023 (3M CDOR + 31) 3.1% AAA
Total 45.6%  
Geographic Breakdown
Canada 75.3%
South America 0.0%
Other 0.0%
USA 13.1%
Europe 11.8%
Australia 0.0%
Asia 0.0%
Distribution Frequency: Quarterly
Most Recent Distribution per Unit: $0.0812
12-Month Trailing Distribution Yield: 2.1%
Next Record Date: June 27, 2019
Next Distribution Date: June 28, 2019
Distributions ($)/Unit3 YTD* 2018 2017 2016 2015 2014 2013 2012
Total Distributions 0.0812 0.2335 0.6161 0.4666 0.4566 0.4079 0.3672 0.2977
Interest   0.2177 0.2745 0.4559 0.4178 0.4098 0.3672 0.2797
Dividends   0.0024 0.0018 0.0038 0.0017 --- --- ---
Capital Gains   0.0136 0.3411 0.0082 0.0383 --- --- 0.0180
Withholding Tax   (0.0002) (0.0013) (0.0013) (0.0012) (0.0019) --- ---

*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. Series F units are only available to eligible investors who have fee based accounts with their dealer. Sales charges and trailing commissions are not payable on Series F units, however investors may pay other fees to their dealer for investment advice and other services. 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. 4From Thomson Reuters Lipper Awards, ©2018 Thomson Reuters. All rights reserved. Used by permission and protected by the Copyright Laws of the United States. The printing, copying, redistribution, or retransmission of this Content without express written permission is prohibited. ®Lysander Funds is a registered trademark of Lysander Funds Limited.