Overview
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Asset ClassFixed Income
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CategoryCanadian Corporate Fixed Income
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Risk RatingLow
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Holdings170
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Yield to Maturity5.1%
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Current Yield3.4%
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Average Duration4.6 Years
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Average Credit QualityA+
Objectives
The Fund seeks to achieve a total return greater than the return achieved by a representative Canadian fixed income index, such as the FTSE Canada Corporate Bond Index.
Investment Focus
Established in 1997 by John Carswell, Canso currently manages over $36 billion in assets. Canso is a investment management firm that has demonstrated independent research expertise in fundamental analysis.
Fund Facts
August 31, 2022| Inception Date | June 30, 2004 |
| Currency | CAD |
| Fund AUM | $907.6 Million |
| Management Fee | 1.30% |
| MER as of December 31, 2021 | 1.54% |
| Minimum Initial Investment | $25,000 (accredited investor) |
| RRSP Eligible | Yes |
Portfolio Characteristics
| Holdings | 170 |
| Average Term to Maturity (Years) | 7.6 |
| Average Duration (Years) | 4.6 |
| Yield to Maturity (%) | 5.1% |
| Current Yield (%) | 3.4% |
| Average Credit Quality1 | A+ |
Credit Quality Breakdown
| AA & Higher | 45.4% |
| A | 27.0% |
| BBB | 27.6% |
Sector
| Canso Private Debt Fund | 10.3% |
| Communication | 5.7% |
| Energy | 7.8% |
| Federal | 27.6% |
| Financial | 24.1% |
| Industrial | 14.9% |
| Infrastructure | 10.4% |
| Real Estate | 0.9% |
| Provincial | 2.7% |
| Other | -4.3% |
Portfolio
Top 10 Holdings
| Security | % of Fund | Rating |
|---|---|---|
| Arrow Lakes Power Corp (amort) 5.516% Apr 5, 2041 Series B | 6.4% | A+ |
| Green Timbers LP (amort) 6.838% Jun 30, 2037 | 4.5% | A- |
| Plenary Properties LTAP LP -CSEC (amort) 6.288% Jan 31, 2044 | 4.4% | A |
| Inpower BC GP (amort) 4.471% Mar 31, 2033 | 4.3% | BBB+ |
| North Battleford Power L.P (amort) 4.958% Dec 31, 2032 | 4.2% | A- |
| N.B. Highway (amort) 6.47% Nov 30, 2027 | 4.0% | A+ |
| Hydro Quebec FRN Perpetual (S/A US LIBOR +6.25) (USD) | 3.6% | AA- |
| Pembina Pipeline Corp 4.75% Mar 26, 2048 | 3.5% | BBB |
| University Ont Institute of Tech (amort) 6.351% Oct 15, 2034 | 3.5% | A- |
| FSCC (amort) 6.915% Jul 31, 2042 | 3.1% | A- |
| Total | 41.5% |
Top 10 Holdings
| Security | % of Fund | Rating |
|---|---|---|
| Canso Private Debt Fund | 10.3% | A- |
| Nestle Holdings Inc. 2.192% Jan 26, 2029 | 8.1% | AA- |
| Canada 0.25% Apr 1, 2024 | 6.2% | AAA |
| Canada 0.25% May 1, 2023 | 5.0% | AAA |
| Bank of America Corp FRN Sep 15, 2027 (Q CDOR+60) | 3.6% | A |
| Canada 0.75% Oct 1, 2024 | 3.4% | AAA |
| MetLife Global Funding l 1.95% Mar 20, 2028 | 3.3% | AA- |
| New York Life Global FDG 2% Apr 17, 2028 | 3.1% | AAA |
| Heathrow Funding Limited 3.661% Jan 13, 2031/33 REGS | 2.8% | BBB+ |
| Great West Life Co Inc. (AT1) 3.6% Dec 31, 2026/2081 | 2.6% | A- |
| Total | 48.4% |
Performance
Inception Date
June 30, 2004
As of Date
August 31, 2022
Compound Returns - Series C
| 1 Month | 3 Months | YTD | 1 Year | 3 Year (Annualized) |
5 Year (Annualized) |
10 Year (Annualized) |
15 Year (Annualized) |
Since Inception (Annualized) |
| -1.8% | -0.7% | -10.4% | -10.3% | 0.2% | 2.0% | 3.2% | 4.8% | 4.8% |
Calendar Year Returns - Series C
Distributions
Quarterly Distributions
| Record Date | Distribution Date |
|---|---|
| March 24, 2022 | March 25, 2022 |
| June 23, 2022 | June 24, 2022 |
| September 29, 2022 | September 30, 2022 |
| December 29, 2022 | December 30, 2022 |
Documents
Fund Profile
Subscription Agreements
Offering Memorandum
Final Tax Year End Distributions
Final Tax Factors
Resources
W(h)ither Inflation and Bond Yields – September 2022
Whither inflation and bond yields? Will they wane and wither, as many expect, or will they show underlying strength and stay higher for much longer than the market consensus predicts? Don’t Worry, Be Inflation Unhappy?? Inflation…
Lysander Funds Announces Listing of Lysander-Canso Corporate Treasury ActivETF and Lysander-Canso Floating Rate ActivETF
TORONTO, September 1, 2022 – Lysander Funds Limited (“Lysander”) and Canso Investment Counsel Ltd. (“Canso”) are excited to announce the launch of Lysander-Canso Corporate Treasury ActivETF and Lysander-Canso Floating Rate ActivETF. These ETFs are exchange-traded mutual…
Canso Corporate Bond Newsletter – July 2022
Everything Except My Mortgage Blown Away From Auckland, to London, to Ottawa, central banks raised overnight rates in a race to restore price stability and their own credibility. Stocks, bonds, crypto, real estate – if you…
Canso Market Observer – July 2022
Once it looked like inflation was not a “temporary supply side” phenomenon, central banks rushed to correct their now very obvious mistake. They had created far too much money than was necessary for actual economic activity…
Canso and GICs – May 2022
1. Greater Initial Yield–Lysander-Canso fixed income funds’ portfolios generally have greater yields than 1-Year, 3-Year, and 5-Year GICs as of March 31st, 2022 2. Historical Outperformance–Lysander-Canso fixed income funds have demonstrated outperformance compared to GICs, as…
Canso Corporate Bond Newsletter – April 2022
The Day the Music Died Historically, war or a large corporate insolvency, or both occurring at the same time, would have roiled the global capital markets. The invasion of Ukraine and the Evergrande restructuring are impacting…