Lysander-Canso Corporate Value Bond Fund - Series F

Fund Code: LYZ801F

  • Portfolio Manager: Canso Investment Counsel Ltd.
  • As of September 30, 2018
  • Fund Category: Fixed Income
  • Benchmark: FTSE TMX All Corporate Bond Index1
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.

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 $23.7 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
(Annualized)
5 Year
(Annualized)
Since Inception
(Annualized)
0.0% 0.5% 1.4% 2.4% 4.2% 5.3% 5.9%
Fund Facts
Series Inception Date December 23, 2011
Currency CAD
Fund AUM $2.4 Billion
NAVPU $12.36
Management Fee 0.75%
MER (As of June 30, 2018 - unaudited) 0.95%
Minimum Initial Investment $5,000
Minimum Subsequent Investment $100
Liquidity Daily
RRSP Eligible Yes
Calendar Year Returns - Series F
Top 10 Holdings
Security % of Fund Rating
BMO CB FRN Feb 1, 2023 (3M CDOR + 19) 8.7% AAA
AT&T Inc. FRN (Q LIBOR + 118) Jun 12, 2024 (USD) 6.7% BBB
BNS FRN Apr 2, 2020 (Q CDOR +18) 5.8% AA
TD Bank CB 1.68% Jun 8, 2021 5.7% AAA
Lloyds Bank PLC FRN Jul 11, 2023 (3M CDOR + 55) 4.2% A+
RBC CB FRN Mar 23, 2020 (3M CDOR + 36) 3.8% AAA
Enbridge Inc. FRN May 24, 2019 (Q CDOR +59) 3.6% BBB+
TD CB FRN Jun 28, 2023 (3M CDOR + 31) 3.3% AAA
RBC CB 1.4% Apr 26, 2019 2.9% AAA
RBC FRN Feb 11, 2020 (3M CDOR + 54) 2.1% AA
Total 46.8%  
Portfolio Characteristics
Number of Securities 131
Number of Issuers 61
Average Term to Maturity (Years) 4.5
Average Duration (Years) 1.3
Average Coupon (%) 3.0%
Yield to Maturity (%) 3.0%
Current Yield (%) 3.0%
Average Credit Quality2 A+
Geographic Breakdown
geo
Canada 78.8%
South America 0.0%
Other 0.0%
USA 12.4%
Europe 8.8%
Australia 0.0%
Asia 0.0%
Credit Quality Breakdown (%)2
AA & Higher 45.9%
A 18.6%
BBB 24.2%
BB & Lower 9.3%
Not Rated 1.9%
Distributions
Distribution Frequency: Quarterly
Most Recent Distribution per Unit: $0.0558
12-Month Trailing Distribution Yield: 4.6%
Next Record Date: December 20, 2018
Next Distribution Date: December 21, 2018
Distributions ($)/Unit3 YTD* 2017 2016 2015 2014 2013 2012
Total Distributions 0.1611 0.6161 0.4666 0.4566 0.4079 0.3672 0.2977
Interest   0.2745 0.4559 0.4178 0.4098 0.3672 0.2797
Dividends   0.0018 0.0038 0.0017 --- --- ---
Capital Gains   0.3411 0.0082 0.0383 --- --- 0.0180
Withholding Tax   (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 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. 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.