LYZ494F

Lysander-Canso
Credit Opportunities Fund
Series F

Series
Key Documents
Fund Profile
Fund Facts
Prospectus
Lysander Funds Ltd.

Overview

  • Asset Class
    Fixed Income
  • CIFSC Category
    Alternative Credit Focused
  • Risk Rating
    Low to Medium
  • Number of Securities (Long/Short)
    121/13
  • Yield to Maturity
    6.9%
  • Current Yield
    5.8%
  • Average Duration
    2.2 Years
  • Average Credit Quality
    A

NAV

  • CAD $ NAV
    10.13
  • Change NAV $
    0.01
  • Change NAV %
    0.10
  • Date
    2023-09-22

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

August 31, 2023
Inception Date May 11, 2020
(offered on a private placement basis since March 31, 2014)
Currency CAD
NAVPU $10.16
Management Fee 0.75%
MER as of June 30, 2023 (unaudited) 1.10%
Minimum Initial Investment $500
Minimum Subsequent Investment $100
Liquidity Monthly
RRSP Eligible Yes
Performance Fee 20.00%
Fund Net AUM $44.9 Million
Total Long AUM $65.5 Million
Total Short AUM -$20.6 Million
Next Subscription Deadline6 September 29, 2023
Next Redemption Deadline7 September 15, 2023
Subsequent Redemption Deadline7 October 13, 2023
▲ The NAVs posted are post-distribution

Portfolio Characteristics

Number of Securities (Long) 121
Number of Securities (Short) 13
Number of Issuers 73
Average Term to Maturity (Years) 4.1
Average Duration (Years) 2.2
Average Coupon (%) 5.7%
Yield to Maturity (%) 6.9%
Current Yield (%) 5.8%
Average Credit Quality (long only)4 A
Cash Weighting -16.5%

Credit Quality Breakdown

AAA 36.2%
AA 4.7%
A 19.9%
BBB 14.6%
BB 8.7%
B & Lower 14.2%
NR 1.7%

Portfolio

Top 10 Holdings

Security % of Fund Rating
Canada RRB 0.5% Dec 1, 2050 12.0% AAA
Canada 0.75% Feb 1, 2024 10.0% AAA
Canada RRB 4.25% Dec 1, 2026 9.4% AAA
Air Canada 4.625% Aug 15, 2029 7.3% BB
BNS FRN Aug 4, 2026 (CORRA+54) 4.0% A
Pacific Life Global Funding II FRN Feb 1, 2027 (Q CDOR+38) 3.9% AA-
Manulife Financial Corp (AT1) 4.1% Mar 19, 2027/2082 3.6% BBB+
Home Trust NHA MBS FRN (98004844) Nov 1, 2026 (M CDOR -10) 3.5% AAA
TD Bank 4.477% Jan 18, 2028 3.5% A+
CIBC FRN Jul 15, 2026 (CORRA+58) 3.1% A
Total 60.3%

Geographic Breakdown

Canada 67.3%
USA 24.1%
South America 2.8%
Europe 5.8%

Performance

Inception Date

May 11, 2020

As of Date

August 31, 2023

Compound Returns

1 Month 3 Months YTD 1 Year 3 Year
(Annualized)		 5 Year
(Annualized)		 10 Year
(Annualized)		 Since Inception
(Annualized)3
0.0% 1.5% 1.9% 7.4% 7.8% 6.4% 6.7% 10.8%

Calendar Year Returns

Distributions

Distributions

Distribution Frequency Quarterly
Most Recent Distribution per Unit $0.0970
12-Month Trailing Distribution Yield 9.0%
Next Record Date September 28, 2023
Next Distribution Date September 29, 2023

Quarterly Distributions

Record Date Distribution Date
March 30, 2023 March 31, 2023
June 29, 2023 June 30, 2023
September 28, 2023 September 29, 2023
December 14, 2023 December 15, 2023
Distributions ($)/Unit5 YTD* 2022 2021 2020 2019 2018 2017 2016 2015 2014
Total Distributions 0.2290 0.7532 0.3959 0.6825 0.5177 0.1896 0.4794 0.4795 0.4539 0.3941
Interest - 0.1476 0.1705 0.2892 0.0755 0.1729 0.1889 0.3287 0.3831 0.2718
Dividends - 0.0316 0.0285 0.0249 0.0217 0.0167 0.0138 0.0170 0.0111 0.0007
Capital Gains - 0.5740 0.1971 0.3684 0.4205 - 0.2768 0.1338 0.0596 0.1219
Withholding Tax - - (0.0002) 0.0000 - - (0.0001) - - (0.0004)
*The final tax character will be determined based on the Fund’s tax year end information.

Resources

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. The indicated rates of return are historical annual compounded total returns including changes in unit value and reinvestment of all distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any unitholder that would have reduced returns. Mutual funds are not guaranteed or insured, their values change frequently and past performance may not be repeated.

1Copyright © 2023 FTSE Global Debt Capital Markets Inc. All rights reserved. FTSE Global Debt Capital Markets Inc (“FTDCM”), FTSE International Limited (“FTSE”) or the London Stock Exchange Group companies (the “Exchange” and, together with FTDCM and FTSE, the “Licensor Parties”). The Licensor Parties make no warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the FTSE Canada Indices (“the Indices”) and/or the figure at which the said Indices stand at any particular time on any particular day or otherwise. The Indices are compiled and calculated by FTDCM and all copyright in the Indices values and constituent lists vests in FTDCM. The Licensor Parties shall not be liable (whether in negligence or otherwise) to any person for any error in the Indices and the Licensor Parties shall not be under any obligation to advise any person of any error therein.

“FTSE®” is a trade mark of the London Stock Exchange Group companies and is used by FTDCM under licence. “FTSE®” is a trade mark of the FTSE International Limited and is used by FTDCM under license. 2Prior to May 11, 2020, Series F was offered on a private placement basis. The inception date of Series F Units is March 31, 2014. The inception date of the Fund is December 19, 2008. Performance information for the period December 19, 2008 to March 30, 2014 is that of the Fund but with Series F fees and expenses applied. Prior to May 11, 2020, the operating expenses of the Fund would have been higher had the Fund been subject to the additional regulatory requirements applicable to a reporting issuer. 3December 19, 2008 (Fund inception date). 4Fixed income securities unrated by external agencies are assigned an internal Canso rating for Average Credit Quality. 5Distributions 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. 6Monthly, by the last business day of the calendar month. 7Monthly, provided notice is received by the Fund no later than the 15th day of the month (or, if the 15th day is not a valuation day, the preceding immediate valuation day).

®Lysander Funds is a registered trademark of Lysander Funds Limited.