Lysander-Fulcra Corporate Securities Fund - Series A

Fund Code: LYZ935A

  • Portfolio Manager: Fulcra Asset Management Inc.
  • As of June 30, 2018
  • Fund Category: Balanced
  • Benchmark: Absolute Return 5% per annum
Investment Focus

The fund invests primarily in fixed income securities of small and mid-cap companies with the tactical inclusion of equity investments. It is unconstrained both geographically and by credit quality.

Risk Tolerance
Low
Medium
High
Why Invest In This Fund

Fulcra Asset Management is an independent credit specialist based in Vancouver, BC. Fulcra was founded by Matt Shandro in 2009. Mr. Shandro has 20 years of credit investing experience, having managed corporate credit at Great Pacific Capital Corp, CI Investments and Marret Asset Management. The Fulcra investment team is dedicated to preserving capital and generating consistent absolute returns for investors. Fulcra employs a fundamental value investing approach to identify under-priced corporate securities.

  • Fulcra is ratings agnostic, leveraging the information advantage of independent research. By investing in misunderstood investment scenarios, under-appreciated and high-yielding securities, Fulcra seeks to generate superior long-term returns with lower volatility.
  • Fulcra invests across the capital structure with a preference for the senior securities due to their contractual nature but will occasionally capture value by investing in mispriced equity-like securities.
  • The Fulcra team is dedicated to preserving capital and generating consistent absolute returns for investors. Fulcra employs a fundamental value investing approach to identify under-priced corporate securities, with the goal to outperform in both good and bad market conditions.
Compound Returns - Series A
1 Month 3 Months YTD 1 Year Since Inception
(Annualized)
0.5% 1.1% 1.3% 7.4% 6.2%
Fund Facts
Series Inception Date December 30, 2016
Currency CAD
Fund AUM $34.9 Million
NAVPU $10.50
Management Fee 1.35%
MER (As of Dec 31, 2017 - audited) 1.82%
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
JAKKS Pacific Inc 4.25% 9.1% NR
Element Fleet 5.125% 6.4% NR
HC2 Holdings Inc 11% 4.7% B-
Aecon 5.5% 4.5% NR
Aimia 5.60% 4.2% BB
Rite Aid 6.125% 3.9% B-
Teekay Corp 8.5% 3.9% B+
CNG Holdings 9.375% 3.8% CCC+
Dundee Preferred Series 5 3.3% N/A
TMX Group 3.253% 2.9% A+
Total 46.9%  
Portfolio Characteristics
Number of Securities 47
Number of Issuers 33
Average Term to Maturity (Years) 1.7
Average Duration (Years) 1.3
Average Coupon (%) 5.5%
Yield to Maturity (%) 5.0%
Current Yield (%) 5.5%
Average Credit Quality BB
Average Bond Price $96.97
Cash Weighting 14.0%
Geographic Breakdown
geo
Canada 56.4%
USA 43.6%
Other 0.0%
Asset Mix
Cash & Equivalents 13.8%
Common Stock 1.9%
Convertible Bonds 7.3%
Corporate Bonds 67.1%
Federal 2.1%
Loans 1.1%
Preferred Stock 6.7%
Credit Quality Breakdown (%)
AAA 2.2%
AA 0.0%
A 1.7%
BBB 1.2%
BB 7.4%
B 21.1%
CCC 7.9%
D 2.0%
Not Rated 36.9%
Distributions
Distribution Frequency: Quarterly
Most Recent Distribution per Unit: $0.0937
12-Month Trailing Distribution Yield: 3.4%
Next Record Date: September 20, 2018
Next Distribution Date: September 21, 2018
Distributions ($)/Unit1 YTD* 2017
Total Distributions 0.1601 0.2685
Interest   0.1815
Dividends   0.0185
Capital Gains   0.0704
Withholding Tax   (0.0020)

*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-Fulcra Corporate Securities 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. 1Distributions 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.