Lysander-Canso Short Term & Floating Rate Fund - Series A

Fund Code: LYZ805A

  • Portfolio Manager: Canso Investment Counsel Ltd.
  • As of September 30, 2018
  • Fund Category: Fixed Income
  • Benchmark: FTSE TMX Canada Short Term Overall Bond Index1
Investment Focus

The fund invests primarily in short term fixed income and floating rate debt securities of Canadian and foreign issuers with a minimum of 70% of the portfolio in BBB or higher.

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 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.

  • Short Term Fixed Income Solution - An investment grade portfolio of low duration corporate bonds with the ability to include up to 30% in non investment grade yield enhancements.
  • Low Sensitivity to Interest Rates - The manager seeks to maximize return while limiting interest risk by investing in primarily short term and floating rate debt securities.
  • Proven Management Expertise - Large and 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
(Annualized)
5 Year
(Annualized)
Since Inception
(Annualized)
0.1% 0.4% 0.7% 1.0% 1.6% 1.7% 1.7%
Fund Facts
Series Inception Date September 18, 2013
Currency CAD
Fund AUM $200.0 Million
NAVPU $10.12
Management Fee 1.05%
MER (As of June 30, 2018 - unaudited) 1.29%
Minimum Initial Investment $5,000
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) 9.8% AAA
BNS FRN Apr 2, 2020 (Q CDOR +18) 9.7% AA
TD Bank FRN Feb 18, 2020 (Q CDOR +54) 5.9% AA
RBC CB FRN Mar 23, 2020 (3M CDOR + 36) 5.8% AAA
Metlife Global Funding I FRN Sep 27, 2019 (3M CDOR +35) 5.6% AA-
Lloyds Bank PLC FRN Jul 11, 2023 (3M CDOR + 55) 5.0% A+
Enbridge Inc. FRN May 24, 2019 (Q CDOR +59) 4.7% BBB+
AT&T Inc. FRN (Q LIBOR + 118) Jun 12, 2024 (USD) 4.4% BBB
Kraft Canada Inc. FRN July 6, 2020 (Q CDOR +105) 4.0% BBB-
RBC FRN Feb 11, 2020 (3M CDOR + 54) 3.8% AA
Total 58.6%  
Portfolio Characteristics
Number of Securities 67
Number of Issuers 37
Average Term to Maturity (Years) 2.9
Average Duration (Years) 0.3
Average Coupon (%) 2.7%
Yield to Maturity (%) 2.5%
Current Yield (%) 2.6%
Average Credit Quality2 AA-
Geographic Breakdown
geo
Canada 80.5%
South America 0.0%
Other 0.0%
USA 11.7%
Europe 7.8%
Australia 0.0%
Asia 0.0%
Credit Quality Breakdown (%)2
AA & Higher 58.2%
A 15.9%
BBB 22.9%
BB & Lower 2.4%
Not Rated 0.5%
Distributions
Distribution Frequency: Quarterly
Most Recent Distribution per Unit: $0.0364
12-Month Trailing Distribution Yield: 1.1%
Next Record Date: December 20, 2018
Next Distribution Date: December 21, 2018
Distributions ($)/Unit3 YTD* 2017 2016 2015 2014 2013
Total Distributions 0.0760 0.0875 0.1604 0.1555 0.2092 0.0171
Interest   0.0794 0.1609 0.1414 0.2098 0.0171
Dividends   --- --- --- --- ---
Capital Gains   0.0085 0.0000 0.0144 --- ---
Withholding Tax   (0.0004) (0.0005) (0.0003) (0.0006) ---

*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 Short Term & Floating Rate 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. 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.