Lysander-Canso Broad Corporate Bond Fund – Series A
- Fund Code: LYZ811A
- Portfolio Manager: Canso Investment Counsel Ltd.
- As of: February 29, 2024
- Asset Class: Fixed Income
- CIFSC Category: Global Corporate Fixed Income
- Benchmark: FTSE Canada All Corporate Bond Index1
Investment Focus
The Fund invests primarily in fixed income securities with a minimum of 75% of the portfolio in bonds rated BBB- or higher. It is unconstrained from geographic considerations.
Risk Tolerance
Why Invest in this Fund?
Established in 1997, Canso Investment Counsel Ltd. is an independent firm focused on bottom-up security selection and fundamental credit research.
Canso utilizes its proprietary Maximum Loss analysis as a risk management tool to size positions while maintaining concentrated portfolios with high conviction in their best ideas.
This independent credit expertise and investment management experience enables Canso to buy securities when they are out of favour and priced at a discount to their intrinsic value.
- Income and Long-Term Capital Growth – Canso is focused on long term capital growth, with returns consisting of income and some capital gains primarily through investing in corporate bonds of developed markets.
- Core Fixed Income Solution Adaptable to Market Conditions – Portfolio is duration unconstrained and can invest up to 25% in non-investment grade bonds (at the time of investment) allowing Canso the flexibility to position the portfolio according to market conditions. Mandate is benchmark agnostic.
- Extensive Investment Management Expertise – Large investment team with experienced credit specialists with 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% | 2.7% | -0.4% | 4.8% | 0.5% | 3.6% | 2.9% |
Fund Facts
Inception Date | December 30, 2016 |
Currency | CAD |
Fund AUM | $364.0 Million |
NAVPU | $10.65 |
Management Fee | 1.20% |
MER as of June 30, 2023 (unaudited) | 1.45% |
Minimum Initial Investment | $500 |
Minimum Subsequent Investment | $100 |
Liquidity | Daily |
RSP Eligible | Yes |
Calendar Year Returns – Series A
Top 10 Holdings
Security | % of Fund | Rating |
---|---|---|
Canada 0.5% Dec 01, 2030 | 8.8% | AAA |
Canada RRB 4.25% Dec 1, 2026 | 7.6% | AAA |
Nestle Holdings Inc. 2.192% Jan 26, 2029 | 5.7% | AA- |
Canada 0.25% Mar 01, 2026 | 5.7% | AAA |
TD Bank 4.477% Jan 18, 2028 | 4.4% | A+ |
Air Canada 4.625% Aug 15, 2029 | 3.4% | BB+ |
Enbridge Inc. 6.51% Nov 9, 2052 | 3.4% | BBB+ |
Cogeco Cable Inc. 2.991% Sept 22, 2031 | 2.5% | BBB- |
Canada RRB 0.25% Dec 1, 2054 | 2.3% | AAA |
Canada RRB 0.5% Dec 1, 2050 | 2.2% | AAA |
Total | 46.0% |
Portfolio Characteristics
Number of Securities | 115 |
Number of Issuers | 65 |
Average Term to Maturity (Years) | 7.9 |
Average Duration (Years) | 5.5 |
Average Coupon (%) | 3.6% |
Yield to Maturity (%) | 5.3% |
Current Yield (%) | 3.8% |
Average Credit Quality2 | A |
Credit Quality Breakdown
AA & Higher | 41.4% |
A | 21.4% |
BBB | 26.1% |
BB & Lower | 10.5% |
Not Rated | 0.6% |
Geographic Breakdown
Canada | 78.8% |
USA | 11.2% |
South America | 0.7% |
Europe | 9.4% |
Distributions
- Distribution Frequency: Quarterly
- Most Recent Distribution per Unit: $0.0907
- 12-Month Trailing Distribution Yield: 2.9%
- Next Record Date: March 21, 2024
- Next Distribution Date: March 22, 2024
Distributions ($)/Unit3 | YTD* | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 |
---|---|---|---|---|---|---|---|---|
Total Distributions | 0.0000 | 0.3053 | 0.0852 | 0.3865 | 0.4888 | 0.0531 | 0.1040 | 0.1296 |
Interest | – | 0.3052 | 0.0850 | 0.1450 | 0.2401 | 0.0531 | 0.1040 | 0.0943 |
Dividends | – | 0.0001 | 0.0002 | 0.0002 | 0.0001 | – | – | – |
Capital Gains | – | – | – | 0.2413 | 0.2486 | – | – | 0.0355 |
Withholding Tax | – | – | – | – | – | – | – | (0.0002) |
Lysander Funds Limited is the investment fund manager of Lysander-Canso Broad Corporate Bond 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. Please read the prospectus before investing. Commissions, trailing commissions, management fees and expenses all may be associated with investment funds.
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. Investment funds are not guaranteed or insured, their values change frequently and past performance may not be repeated.
1Copyright © 2024 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.
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.
®Lysander Funds is a registered trademark of Lysander Funds Limited.
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