ETF Facts Lysander Funds Limited

Lysander-Slater Preferred Share ActivETF (PR)

July 29, 2022

This document contains key information you should know about Lysander-Slater Preferred Share ActivETF. You can find more details about this exchange-traded fund (ETF) in its prospectus. Ask your representative for a copy, contact Lysander Funds Limited at 1-877-308-6979 or manager@lysanderfunds.com, or visit www.lysanderfunds.com.

Before you invest, consider how the ETF would work with your other investments and your tolerance for risk.

Quick Facts
Date ETF Started:August 10, 2015Fund Manager:Lysander Funds Limited
Total value on June 30, 2022:$87,965,388Portfolio Manager:Slater Asset Management Inc.
Management Expense Ratio (MER):0.99%Distributions:Monthly (any net income and/or return of capital) and in December (any net capital gains)
Trading information (12 months ending June 30, 2022)
Ticker Symbol: PR
Exchange: Toronto Stock Exchange (TSX)
Currency: Canadian dollars
Average daily volume: 17,469 units
Number of days traded: 251 out of 251 trading days
Pricing information (12 months ending June 30, 2022)
Market price: $9.00 - $10.51
Net asset value (NAV): $9.03 - $10.50
Average bid‐ask spread: 0.66%

What does the ETF invest in?

The ETF seeks to generate income while preserving investor capital by investing primarily in preferred shares of Canadian entities that are listed on a Canadian stock exchange. The ETF may hold up to 30% of its assets at the time of purchase in issuers located outside Canada.

The charts below give you a snapshot of the ETF’s investments on June 30, 2022. The ETF’s investments will change.

Top 10 investments (as of June 30, 2022)
Bank of Montreal Non Cum 5 Yr Cl B Pfd Ser 29 4.4%
Fairfax Financial Holdings Ltd Cum 5 Yr Rt Reset Pfd Ser I 3.4%
Royal Bank of Canada Non Cum 5 Yr Reset Pfd Ser AZ 3.1%
Fortis Inc Cum Red Fixed Rate First Pfd M 3.0%
Toronto Dominion Bank Non Cum 5 Yr Rate Reset Pfd 2.9%
Canadian Utilities Ltd Cum Red Second Pfd Ser Y 2.8%
Fairfax Financial Holdings Ltd Cum 5 Yr Rt Reset Pfd Series G 2.6%
Royal Bank Of Canada Var Rt 31-Dec-2049 2.0%
Northland Power Inc Cum Rt Reset Pfd Ser 1 2.0%
Enbridge Inc Cum Red Pfd Ser 15 2.0%
Total percentage of top 10 investments 28.2%
Total number of investments 130
Investment mix (as of June 30, 2022)
Financials 51.8%
Energy 22.3%
Utilities 18.9%
Communication Services 3.8%
Cash and Cash Equivalents 1.9%
Consumer Staples 1.3%
Industrials 0.5%
Other Assets less Liabilities -0.5%
ETF Facts Lysander Funds Limited

Lysander-Slater Preferred Share ActivETF (PR)

July 29, 2022

How risky is it?

The value of the ETF can go down as well as up. You could lose money.

One way to gauge risk is to look at how much an ETF’s returns change over time. This is called “volatility”.

In general, ETFs with higher volatility will have returns that change more over time. They typically have a greater chance of losing money and may have a greater chance of higher returns. ETFs with lower volatility tend to have returns that change less over time. They typically have lower returns and may have a lower chance of losing money.

Risk rating

Lysander Funds Limited has rated the volatility of this ETF as Medium.

This rating is based on how much the ETF’s returns have changed from year to year. It doesn’t tell you how volatile the ETF will be in the future. The rating can change over time. An ETF with a low risk rating can still lose money.

For more information about the risk rating and specific risks that can affect the ETF’s returns, see the “Risk Factors” section of the ETF’s prospectus.

No guarantees

ETFs do not have any guarantees. You may not get back the amount of money you invest.

How has the ETF performed?

This section tells you how units of the ETF have performed over the past 6 years. Returns1 are after expenses have been deducted. These expenses reduce the ETF’s returns.

  • 1Returns are calculated using the ETF’s net asset value (NAV).

Year-by-year returns

This chart shows how units of the ETF performed in each of the last 6 years. The ETF dropped in value in 2 of the 6 years. The range of returns and change from year to year can help you assess how risky the ETF has been in the past. It does not tell you how the ETF will perform in the future.

Best and worst 3-month returns

This table shows the best and worst returns for units of the ETF in a 3-month period over the past 6 years. The best and worst 3-month returns could be higher or lower in the future. Consider how much of a loss you could afford to take in a short period of time.

Return3 months endingIf you invested $1,000 at the beginning of the period
Best Return15.38%January 31, 2021Your investment would rise to $1,001.54
Worst Return-26.18%March 31, 2020 Your investment would drop to $997.38
ETF Facts Lysander Funds Limited

Lysander-Slater Preferred Share ActivETF (PR)

July 29, 2022

Average return

The annual compounded rate of return of the ETF was 3.43% since inception. A $1,000 investment in the ETF since inception would have been worth $1,261.71 on June 30, 2022.

Trading ETFs

ETFs hold a basket of investments, like mutual funds, but trade on exchanges like stocks. Here are a few things to keep in mind when trading ETFs:

Pricing

ETFs have two sets of prices: market price and NAV.

Market Price

ETFs are bought and sold on exchanges at the market price. The market price can change throughout the trading day. Factors like supply, demand and changes in the value of an ETF’s investments can affect the market price. You can get price quotes any time during the trading day. Quotes have two parts: bid and ask. The bid is the highest price a buyer is willing to pay if you want to sell your ETF units. The ask is the lowest price a seller is willing to accept if you want to buy ETF units. The difference between the two is called the “bid-ask spread”. In general, a smaller bid-ask spread means the ETF is more liquid. That means you are more likely to get the price you expect.

Net asset value (NAV)

Like mutual funds, ETFs have a NAV. It is calculated after the close of each trading day and reflects the value of an ETF’s investments at that point in time. NAV is used to calculate financial information for reporting purposes – like the returns shown in this document.

Orders

There are two main options for placing trades: market orders and limit orders. A market order lets you buy or sell units at the current market price. A limit order lets you set the price at which you are willing to buy or sell units.

Timing

In general, market prices of ETFs can be more volatile around the start and end of the trading day. Consider using a limit order or placing a trade at another time during the trading day.

Who is the ETF for?

Investors who want to generate income while preserving capital, are looking to gain exposure to Canadian preferred shares and are comfortable with a medium level of investment risk.

A word about tax

In general, you’ll have to pay income tax on any money you make on an ETF. How much you pay depends on the tax laws where you live and whether or not you hold the ETF in a registered plan, such as a Registered Retirement Savings Plan or a Tax-Free Savings Account.

Keep in mind that if you hold your ETF in a non-registered account, distributions from the ETF are included in your taxable income, whether you get them in cash or have them reinvested.

How much does it cost?

This section shows the fees and expenses you could pay to buy, own and sell units of the ETF. Fees and expenses – including trailing commissions – can vary among ETFs. Higher commissions can influence representatives to recommend one investment over another. Ask about other ETFs and investments that may be suitable for you at a lower cost.

Brokerage commissions

You may have to pay a commission every time you buy and sell units of the ETF. Commissions may vary by brokerage firm. Some brokerage firms may offer commission-free ETFs or require a minimum purchase amount.

ETF Facts Lysander Funds Limited

Lysander-Slater Preferred Share ActivETF (PR)

July 29, 2022

ETF expenses

You do not pay these expenses directly. They affect you because they reduce the ETF’s returns.

As at December 31, 2022, the ETF’s expenses were 1.41% of its average value. This equates to $14.10 for every $1,000 invested.

Annual rate (as a % of the ETF’s value)
Management expense ratio (MER) – This is the total of the ETF’s management fee and operating expenses.0.99%
Trading expense ratio (TER) – These are the ETF’s trading costs.0.42%
ETF expenses1.41%

Trailing commission

The trailing commission is an ongoing commission. It is paid for as long as you own the ETF. It is for the services and advice that your representative and their firm provide to you. This ETF doesn’t have a trailing commission.

What if I change my mind?

Under securities law in some provinces and territories, you have the right to cancel your purchase within 48 hours after you receive confirmation of the purchase. In some provinces and territories, you also have the right to cancel a purchase, or in some jurisdictions, claim damages, if the prospectus, ETF Facts or financial statements contain a misrepresentation. You must act within the time limit set by the securities law in your province or territory. For more information, see the securities law of your province or territory or ask a lawyer.

For more information

Contact Lysander Funds Limited or your representative for the ETF’s prospectus and other disclosure documents. These documents and the ETF Facts make up the ETF’s legal documents.

Lysander Funds Limited
3080 Yonge Street, Suite 3037
Toronto, ON M4N 3N1
Phone: 1 416-640-4275
Toll-free: 1 877-308-6979
manager@lysanderfunds.com
www.lysanderfunds.com