Lysander-Canso U.S. Credit Fund (USD) – Series A

  • Fund Code: LYZ808A
  • Portfolio Manager: Canso Investment Counsel
  • As of: April 30, 2023
  • Asset Class: Fixed Income
  • CIFSC Category: Global Corporate Fixed Income
  • Benchmark: ICE BofA U.S. Corporate Master Total Return Index1

Investment Focus

The Fund invests primarily in U.S. debt and money market securities either denominated in U.S. dollars or hedged to U.S. dollars and is unrestricted across all credits.

Risk Tolerance

Why Invest in this Fund?

Established in 1997, Canso is an independent firm focused on bottom up security selection. Proprietary research developed over multiple market cycles guides the investment of over $36 billion in AUM.

Each security is assessed on its own merits using bottom-up, fundamental research. Canso uses its proprietary Maximum Loss grade, where the max loss quantifies recovery value in the event of a default. The greater the potential downside, the lower the portfolio weight. Canso believes in concentrating their best ideas and having high conviction portfolios with limited holdings.

This independent credit expertise and successful investment management experience enables Canso to buy securities when they are out of favour and priced at a discount to their intrinsic value.

  • USD Denominated Income Solution – US dollar denominated fixed income fund focused on long term capital growth, denominated in U.S. dollars or hedged to U.S. dollars using forward currency contracts.
  • Adaptable to Market Conditions – Portfolio is unconstrained from both a duration and credit perspective, allowing Canso the flexibility to position the portfolio according to market conditions. Mandate is benchmark agnostic.
  • Proven Management Expertise – Large investment team with experienced credit specialists with an expertise in determining default risks and recovery values of issuers to identify corporate bond opportunities. The continuity of the team has contributed to the successful management of investor portfolios over different market cycles.

Compound Returns – Series A

1 Month 3 Months YTD 1 Year 3 Year
(Annualized)		 5 Year
(Annualized)		 Since Inception
(Annualized)
0.3% 1.0% 3.5% 1.7% 8.4% 5.9% 4.2%

Fund Facts

Inception Date December 30, 2014
Currency USD
Fund AUM $174.1 Million
NAVPU $10.70
Management Fee 1.25%
MER as of December 31, 2022 1.50%
Minimum Initial Investment $500
Minimum Subsequent Investment $100
Liquidity Daily
RRSP Eligible Yes

Calendar Year Returns – Series A

Lysander Funds Limited
Lysander-Canso U.S. Credit Fund (USD) – Series A

Top 10 Holdings

Security % of Fund Rating
US Treasury 0.125% Feb 15, 2024 (USD) 10.4% AAA
Air Canada 4.625% Aug 15, 2029 6.3% BB-
Pacific Life Global Funding II FRN Feb 1, 2027 (Q CDOR+38) 3.3% AA-
Met Life Global Funding I FRN Jan 7, 2024 (SOFR+32)144A(USD) 2.9% AA-
Goldman Sachs FRN Apr 29, 2025 (CDOR+37) 2.4% A
Delta Airlines SkyMiles TL Oct 20, 2027 (Q LIBOR+375) 2.1% BBB+
Latam Airlines Group SA 13.375% Oct 15, 2029 144A (USD) 2.1% B
Scotia Capital NHA MBS FRN (98005098) Apr 1, 2027(M CDOR-12) 2.1% AAA
Great West Life Co Inc. (AT1) 3.6% Dec 31, 2026/2081 2.0% A-
Bombardier Inc. 7.45% May 1, 2034 REGS (USD) 2.0% B-
Total 35.6%

Portfolio Characteristics

Number of Securities 118
Number of Issuers 58
Average Term to Maturity (Years) 4.2
Average Duration (Years) 2.3
Average Coupon (%) 4.6%
Yield to Maturity (%) 7.1%
Current Yield (%) 5.1%
Average Credit Quality2 BBB+

Credit Quality Breakdown

AA & Higher 30.9%
A 8.3%
BBB 25.0%
BB & Lower 33.8%
Not Rated 2.1%

Geographic Breakdown

Canada 48.2%
USA 40.7%
South America 2.1%
Europe 6.8%
Other 2.1%

Distributions

  • Distribution Frequency: Quarterly
  • Most Recent Distribution per Unit: $0.1149
  • 12-Month Trailing Distribution Yield: 6.3%
  • Next Record Date: June 29, 2023
  • Next Distribution Date: June 30, 2023
Distributions ($)/Unit3 YTD* 2022 2021 2020 2019 2018 2017 2016 2015
Total Distributions 0.1149 0.6313 0.6724 0.2894 0.2603 0.2078 0.1758 0.2063 0.3357
Interest – 0.3072 0.2405 0.2804 0.2603 0.2078 0.1760 0.2063 0.2397
Dividends – 0.0210 0.0303 0.0090 – – – – –
Capital Gains – 0.3032 0.4018 – – – – – 0.0960
Withholding Tax – – (0.0002) – – – (0.0002) – –
*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 U.S. Credit Fund (the “Fund”). This document is not an invitation to invest in the Fund and does not constitute a public offering of sale. 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 securityholder that would have reduced returns. Mutual funds are not guaranteed or insured, their values change frequently and past performance may not be repeated. 1Any unauthorized use or disclosure is prohibited. Nothing herein should in any way be deemed to alter the legal rights and obligations contained in agreements between any ICE Data Services entity (“ICE”)

Lysander Funds Limited
Lysander-Canso U.S. Credit Fund (USD) – Series A

and their clients relating to any of the Indices or products or services described herein. The information provided by ICE and contained herein is subject to change without notice and does not constitute any form of representation or undertaking. ICE and its affiliates make no warranties whatsoever either express or implied as to merchantability fitness for a particular purpose or any other matter in connection with the information provided. Without limiting the foregoing ICE and its affiliates makes no representation or warranty that any information provided hereunder are complete or free from errors omissions or defects. All information provided by ICE is owned by or licensed to ICE. ICE retains exclusive ownership of the ICE Indices including the ICE BofA Indexes and the analytics used to create this analysis ICE may in its absolute discretion and without prior notice revise or terminate the ICE information Indices and analytics at any time. The information in this analysis is for internal use only and redistribution of this information to third parties is expressly prohibited. Neither the analysis nor the information contained therein constitutes investment advice or an offer or an invitation to make an offer to buy or sell any securities or any options futures or other derivatives related to such securities. The information and calculations contained in this analysis have been obtained from a variety of sources including those other than ICE and ICE does not guarantee their accuracy. Prior to relying on any ICE information and/or the execution of a security trade based upon such ICE information you are advised to consult with your broker or other financial representative to verify pricing information. There is no assurance that hypothetical results will be equal to actual performance under any market conditions. THE ICE INFORMATION IS PROVIDED TO THE USERS “AS IS.” NEITHER ICE NOR ITS AFFILIATES NOR ANY THIRD PARTY DATA PROVIDER WILL BE LIABLE TO ANY USER OR ANYONE ELSE FOR ANY INTERRUPTION INACCURACY ERROR OR OMISSION REGARDLESS OF CAUSE IN THE ICE INFORMATION OR FOR ANY DAMAGES RESULTING THEREFROM. In no event shall ICE or any of its affiliates employees officers directors or agents of any such persons have any liability to any person or entity relating to or arising out of this information analysis or the indices contained herein. 2Fixed income securities unrated by external agencies are assigned an internal Canso rating for Average Credit Quality. 3Distributions 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.

Refinitiv Lipper Fund Awards Canada 2022 Winner

Lysander-Canso U.S. Credit Fund (USD) (Series F) was named Best Global Corporate Fixed Income Fund for 5 years ending July 31, 2022, out of a classification total of 16 funds (5 years). The corresponding Refinitiv Lipper Leader ratings for Consistent Return of the fund for the period ended July 31, 2022 were: N/A (1 year), 5 (3 years), and 5 (5 years). Performance for the fund (Series F) for the period ended April 30, 2023 was 2.3% (1 year), 9.0% (3 years), 6.5% (5 years) and 4.8% (since inception – Dec 30, 2014).

The Refinitiv Lipper Fund Awards, granted annually, highlight funds and fund companies that have excelled in delivering consistently strong risk-adjusted performance relative to their peers. The Refinitiv Lipper Fund Awards are based on the Lipper Leader for Consistent Return rating, which is a risk-adjusted performance measure calculated over 36, 60 and 120 months. The highest 20% of funds in each category are named Lipper Leaders for Consistent Return and receive a score of 5, the next 20% receive a score of 4, the middle 20% are scored 3, the next 20% are scored 2, and the lowest 20% are scored 1. The fund with the highest Lipper Leader for Consistent Return (Effective Return) value in each eligible classification wins the Refinitiv Lipper Fund Award. For more information, see lipperfundawards.com. Although Refinitiv Lipper makes reasonable efforts to ensure the accuracy and reliability of the data contained herein, the accuracy is not guaranteed by Refinitiv Lipper. Note: The Lipper Leader Ratings for each fund are subject to change every month. Refinitiv Lipper Fund Awards, ©2023 Refinitiv. All rights reserved. Used under license.

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

Lysander Funds Ltd., 3080 Yonge St., Suite 3037, Toronto, ON, M4N 3N1
Toll Free: (877) 308-6979 Website: www.lysanderfunds.com
Lysander Funds Limited