Lysander-Canso U.S Credit Fund (USD) - Series A
Fund Code: LYZ808A
- Portfolio Manager: Canso Investment Counsel Ltd.
- As of June 30, 2018
- Fund Category: Fixed Income
- Benchmark: Merrill Lynch US Corporate Master Total Return Index1
The Fund invests primarily in U.S. debt and money market securities either denominated in U.S. dollars or hedged to U.S. dollars and is unrestricted across all credits.
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 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.
- USD Denominated Income Solution - US dollar denominated fixed income fund focused on long term capital growth, denominated in U.S. dollars or hedged to U.S. dollars using forward currency contracts.
- Adaptable to Market Conditions - Portfolio is unconstrained from both a duration and credit perspective, allowing Canso 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 A
|1 Month||3 Months||YTD||1 Year||3 Year
|Series Inception Date||December 30, 2014|
|Fund AUM||$30.2 Million|
|MER (As of Dec 31, 2017 - audited)||1.66%|
|Minimum Initial Investment||$5,000|
|Minimum Subsequent Investment||$100|
Calendar Year Returns - Series A
Top 10 Holdings
|Security||% of Fund||Rating|
|GE Capital Corp FRN May 5, 2026 (USD) (Q LIBOR +38)||9.2%||A|
|RBC FRN Feb 1, 2022 (3M LIBOR +73) USD||8.2%||AA-|
|TD Bank 1.9% Oct 24, 2019 (USD)||7.8%||AA|
|Goldman Sachs FRN Nov 15, 2021 (USD) (Q LIBOR +117)||7.7%||BBB+|
|Lloyds Bank PLC FRN May 7, 2021 (Q LIBOR+49) (USD)||7.4%||A+|
|MetLife Global Funding I 2.3% April 10, 2019 (144A) USD||7.4%||AA-|
|Morgan Stanley FRN Jan 27, 2020 (USD) (Q LIBOR +114)||6.3%||A-|
|Enbridge Inc. FRN May 24, 2019 (Q CDOR +59)||5.8%||BBB+|
|JP Morgan Chase FRN (USD) (Q LIBOR +95.5) Jan 23, 2020||5.2%||A-|
|Apple Inc. 1.8% Nov 13, 2019 (USD)||3.4%||AA+|
|Number of Securities||59|
|Number of Issuers||26|
|Average Term to Maturity (Years)||4.7|
|Average Duration (Years)||1.1|
|Average Coupon (%)||3.3%|
|Yield to Maturity (%)||3.3%|
|Current Yield (%)||3.3%|
|Average Credit Quality2||A|
Credit Quality Breakdown (%)2
|AA & Higher||32.1%|
|BB & Lower||11.7%|
|Distribution Frequency: Quarterly|
|Most Recent Distribution per Unit: $0.0407|
|12-Month Trailing Distribution Yield: 1.8%|
|Next Record Date: September 20, 2018|
|Next Distribution Date: September 21, 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 U.S. Credit 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 Merrill Lynch, Pierce, Fenner & Smith Incorporated ("BofAML"), used with permission. BofAML PERMITS USE OF THE BofAML INDICES AND RELATED DATA ON AN "AS IS" BASIS, MAKES NO WARRANTIES REGARDING SAME, DOES NOT GUARANTEE THE SUITABILITY, QUALITY, ACCURACY, TIMELINESS, AND/OR COMPLETENESS OF THE BofAML INDICES OR ANY DATA INCLUDED IN, RELATED TO, OR DERIVED THEREFROM, ASSUMES NO LIABILITY IN CONNECTION WITH THE USE OF THE FOREGOING, AND DOES NOT SPONSOR, ENDORSE, OR RECOMMEND CANSO INVESTMENT COUNSEL LTD., OR ANY OF ITS PRODUCTS OR SERVICES. 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.