Overview
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Asset ClassFixed Income
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CategoryGlobal Corporate Fixed Income
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Risk RatingLow
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Holdings200
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Yield to Maturity5.8%
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Current Yield4.3%
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Average Duration2.2 Years
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Average Credit QualityBBB+
Objectives
The Fund seeks to achieve above average income returns through a diversified portfolio composed primarily of debt and money market securities. The Fund may occasionally invest in equity securities. The Fund will attempt to manage the allocation among securities to lower the risk of capital loss as the Investment Manager deems appropriate.
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 | December 31, 2000 |
| Currency | CAD |
| Fund AUM | $3.4 Billion |
| Management Fee | 1.40% |
| MER as of December 31, 2021 | 1.64% |
| Minimum Initial Investment | $25,000 (accredited investor) |
| RRSP Eligible | Yes |
Portfolio Characteristics
| Holdings | 200 |
| Average Term to Maturity (Years) | 4.9 |
| Average Duration (Years) | 2.2 |
| Yield to Maturity (%) | 5.8% |
| Current Yield (%) | 4.3% |
| Average Credit Quality1 | BBB+ |
Credit Quality Breakdown
| AA & Higher | 34.8% |
| A | 5.9% |
| BBB | 15.8% |
| BB & Lower | 32.3% |
| NR | 11.2% |
Sector
| Canso Strategic Credit Fund | 8.3% |
| Communication | 5.8% |
| Energy | 5.1% |
| Federal | 29.4% |
| Financial | 23.4% |
| Industrial | 10.6% |
| Infrastructure | 13.2% |
| Publishing/Printing | 0.7% |
| Other | 3.5% |
Portfolio
Top 10 Holdings
| Security | % of Fund | Rating |
|---|---|---|
| Canada 0.25% May 1, 2023 | 10.2% | AAA |
| Air Canada 4.625% Aug 15, 2029 | 6.7% | BB |
| Canada 0.25% Feb 1, 2023 | 6.5% | AAA |
| American Airlines Inc. 11.75% Jul 15, 2025 144A (USD) | 5.5% | B |
| Bombardier Inc. 7.45% May 1, 2034 REGS (USD) | 4.9% | B- |
| MCAP Service NHA MBS (97512340) 2.64% Aug 1, 2023 | 3.0% | AAA |
| AMC Entertainment Holdings 7.5% Feb 15,2029 144A (USD) | 2.8% | CCC+ |
| Avis Budget Car/Finance 4.75% Apr 1, 2028 144A (USD) | 2.7% | B |
| American Airlines Inc. RSG 10.75%/12% Feb 15, 2026 (USD) | 2.7% | BB |
| Canada 0.25% Apr 1, 2024 | 2.6% | AAA |
| Total | 47.6% |
Top 10 Holdings
| Security | % of Fund | Rating |
|---|---|---|
| Canso Strategic Credit Fund - Series O - 339O | 8.3% | NA |
| Canada 0.25% Apr 1, 2024 | 6.0% | AAA |
| Air Canada 4.625% Aug 15, 2029 | 5.7% | BB |
| Canada 0.75% Oct 1, 2024 | 3.9% | AAA |
| Pacific Life Global Funding II FRN Feb 1, 2027 (Q CDOR+38) | 3.1% | AA- |
| American Airlines Inc. 11.75% Jul 15, 2025 144A (USD) | 2.6% | B |
| Canada 0.25% May 1, 2023 | 2.5% | AAA |
| Delta Airlines SkyMiles TL Oct 20, 2027 (Q LIBOR+375) | 2.5% | BBB |
| Manulife Financial Corp (AT1) 3.375% Jun 19, 2026/2081 | 2.1% | BBB+ |
| C.P.A. Lte. NHA MBS FRN (98004962) Jan 1, 2027 (M CDOR-15) | 2.0% | AAA |
| Total | 38.7% |
Performance
Inception Date
December 31, 2000
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) |
| -0.3% | -1.2% | -6.6% | -5.4% | 9.4% | 6.7% | 7.1% | 8.2% | 8.7% |
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…