LYZ494 A
Lysander-Canso
Credit Opportunities Fund
Series A

Series

  • Asset Class
    Fixed Income
  • Category
    Alternative Credit Focused
  • Risk Rating
    Low to Medium
  • Number of Securities
    ---
  • Yield to Maturity
    7.5%
  • Current Yield
    6.7%
  • Average Duration
    3.9 Years
  • Average Credit Quality
    BB+

NAV

  • CDN $ NAV
    10.82
  • Change NAV $
    0.05
  • Change NAV %
    0.46
  • Date
    2020-10-23

Objectives

The Fund’s objective is to achieve long term capital growth by investing in, or gaining exposure to, a diversified portfolio composed primarily of debt and money market securities.  The Fund will use alternative investment strategies such as engaging in short sales and purchasing securities on margin or with borrowed funds.

Investment Focus

The Fund is an alternative mutual fund that primarily invests in a diversified portfolio of corporate debt. The Fund may also sell securities short and deploy leverage to achieve its investment objectives. There are no limits on the percentage of the Fund that can be invested in securities rated below BBB. From time to time the Fund may also invest up to 20% in other securities such as convertible bonds, equities, or income trusts.

Fund Facts

September 30, 2020
Inception Date May 11, 2020
Currency CAD
NAVPU $10.61
Management Fee 1.25%
Performance Fee 20.00%
MER as of June 30, 2020 (unaudited) 10.40%
Minimum Initial Investment $1,000
Minimum Subsequent Investment $100
Liquidity Monthly
RRSP Eligible Yes
Fund Net AUM $17.8 Million
Total Long AUM $26.8 Million
Total Short AUM -$9.0 Million
Cash Weighting 3.8%

Portfolio Characteristics

Number of Securities Long 140
Number of Securities Short 18
Number of Issuers 66
Average Term to Maturity (Years) 9.6
Average Duration (Years) 3.9
Average Coupon 6.4%
Yield to Maturity 7.5%
Current Yield 6.7%
Average Credit Quality (long only) BB+

Credit Quality Breakdown

The NAVs posted are post-distribution.

Top 10 Holdings

September 30, 2020
Security % of fund Rating
Shaw Communications Inc. 6.75% Nov 9, 2039 7.8% BBB-
RBC (AT1) 4.5% Nov 24, 2025/2080 7.4% BBB
AT&T Inc. 4.85% May 25, 2047 6.0% BBB
Ford Credit Canada Co. FRN Mar 21, 2024 (Q CDOR + 314) 5.7% BB+
Enbridge Inc. 4.57% Mar 11, 2044 4.3% BBB+
TransCanada Pipelines 4.34% Oct 15, 2049 4.3% BBB+
Suncor Energy Inc. 5% Apr 9, 2030 3.8% BBB+
Fedex Corp. 5.25 May 15, 2050 (USD) 3.8% BBB
Bombardier Inc. 7.875% Apr 15, 2027 (USD) 144A 3.6% CCC
Spirit Aerosystems Inc. 4.6% Jun 15, 2028 (USD) 3.4% CCC+
Total 50.1%

Geographic Breakdown

Performance data is not available as Series A has not been offered under a prospectus for 12 consecutive months.

Distributions

Distribution Frequency: Quarterly
Most Recent Distribution per Unit: $0.1439
12-Month Trailing Distribution Yield: 2.1%
Next Record Date: December 17, 2020
Next Distribution Date: December 18, 2020

Quarterly Distributions

Record Date Distribution Date
March 26, 2020 March 27, 2020
June 25, 2020 June 26, 2020
September 24, 2020 September 25, 2020
December 17, 2020 December 18, 2020
Distributions ($)/Unit3 YTD*
Total Distributions $0.2197
Interest
Dividends
Capital Gains
Withholding Tax

* The final tax character will be determined based on the Fund’s tax year end information.

Lysander Funds Limited is the investment fund manager of Lysander-Canso Credit Opportunities Fund (the “Fund”). This document is not an invitation to invest in the Fund and does not constitute a public offering of sale. This Fund is an alternative mutual fund. It has the ability to invest in asset classes or use investment strategies that are not permitted for other types of mutual funds. The specific strategies that differentiate this Fund from other types of mutual funds include: increased use of derivatives for non-hedging purposes; increased ability to sell securities short; and the ability to borrow cash to use for investment purposes. While these strategies will be used in accordance with the Fund’s investment objectives and strategies, during certain market conditions they may accelerate the pace at which your investment decreases in value. Purchases in the Fund can only be made through an Investment Professional on the terms in the Fund’s offering document by eligible investors. Each purchaser of units in a fund may have statutory or contractual right of action. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed or insured, their values change frequently and past performance may not be repeated. Prior to May 11, 2020, the Fund was offered on a private placement basis. Distributions are based on the actual number of units outstanding at the relevant time. Distributions are paid in cash or reinvested in additional units. 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. Fixed income securities unrated by external agencies are assigned an internal Canso rating for Average Credit Quality. ®Lysander Funds is a registered trademark of Lysander Funds Limited.