Lysander-Canso U.S Credit Fund (USD) - Series F

Fund Code: LYZ808F

  • Portfolio Manager: Canso Investment Counsel Ltd.
  • As of September 30, 2018
  • Fund Category: Fixed Income
  • Benchmark: Merrill Lynch US Corporate Master Total Return Index1
Investment Focus

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.

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.

  • 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 F
1 Month 3 Months YTD 1 Year 3 Year
(Annualized)
Since Inception
(Annualized)
0.1% 0.6% 1.4% 2.0% 5.5% 2.3%
Fund Facts
Series Inception Date December 30, 2014
Currency USD
Fund AUM $30.0 Million
NAVPU $9.65
Management Fee 0.75%
MER (As of June 30, 2018 - unaudited) 1.13%
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
GE Capital Corp FRN May 5, 2026 (USD) (Q LIBOR +38) 9.2% A
RBC FRN Feb 1, 2022 (3M LIBOR +73) USD 8.3% AA
Cigna Corp FRN (Q LIBOR + 65) Sept 17, 2021 (USD) 144A 7.9% BBB+
Goldman Sachs FRN Nov 15, 2021 (USD) (Q LIBOR +117) 7.7% BBB+
Lloyds Bank PLC FRN May 7, 2021 (Q LIBOR+49) (USD) 7.5% A+
TD Bank 1.9% Oct 24, 2019 (USD) 7.2% AA
AT&T Inc. FRN (Q LIBOR + 118) Jun 12, 2024 (USD) 7.2% BBB
Morgan Stanley FRN Jan 27, 2020 (USD) (Q LIBOR +114) 6.4% A-
JP Morgan Chase FRN (USD) (Q LIBOR +95.5) Jan 23, 2020 5.3% A-
CIT Group Inc. 4.75% Feb 16, 2024 (USD) 4.4% BB+
Total 71.0%  
Portfolio Characteristics
Number of Securities 57
Number of Issuers 25
Average Term to Maturity (Years) 5.2
Average Duration (Years) 1.2
Average Coupon (%) 3.6%
Yield to Maturity (%) 3.6%
Current Yield (%) 3.6%
Average Credit Quality2 A-
Geographic Breakdown
geo
Canada 27.5%
South America 0.0%
Other 0.0%
USA 60.4%
Europe 12.3%
Australia 0.0%
Asia 0.0%
Credit Quality Breakdown (%)2
AA & Higher 18.6%
A 33.6%
BBB 29.8%
BB & Lower 16.4%
Not Rated 1.7%
Distributions
Distribution Frequency: Quarterly
Most Recent Distribution per Unit: $0.0530
12-Month Trailing Distribution Yield: 2.0%
Next Record Date: December 20, 2018
Next Distribution Date: December 21, 2018
Distributions ($)/Unit3 YTD* 2017 2016 2015
Total Distributions 0.1420 0.2287 0.4170 0.3464
Interest   0.2290 0.4170 0.2474
Dividends   --- --- ---
Capital Gains   --- --- 0.0990
Withholding Tax   (0.0003) --- ---

*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. 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 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.