Lysander-Slater Preferred Share Dividend Fund – Series A
- Fund Code: LYZ920A
- Portfolio Manager: Slater Asset Management Inc.
- As of: March 31, 2024
- Asset Class: Preferred Shares
- CIFSC Category: Preferred Share Fixed Income
- Benchmark: S&P/TSX Preferred Share Total Return Index1
Investment Focus
The funds objective is to seek to generate income while preserving investor capital by investing primarily in preferred securities of Canadian issuers that are listed on a Canadian stock exchange.
Risk Tolerance
Why Invest in this Fund?
Founded in 2009, Slater Asset Management is an independent portfolio manager with a focus on delivering dedicated, active management of Canadian preferred share portfolios to investors. Slater’s approach to investing in preferred shares is based on identifying high quality preferred shares that are at a discount to the market. Slater is committed to the ongoing monitoring of preferred share valuations to provide prudent risk management.
- Experience – Portfolio Manager with over 20 years’ experience managing portfolios of preferred shares.
- Active management – Slater’s active portfolio construction results in a well-diversified portfolio of preferred shares offering diversification from traditional equity and fixed income securities.
- Tax Efficient Income – Slater invests in Canadian preferred shares which are taxed at a more favourable rate than interest income because of the federal dividend tax credit.
Fund Facts
Inception Date | December 30, 2014 |
Currency | CAD |
Fund AUM | $79.2 Million |
NAVPU | $8.47 |
Management Fee | 1.25% |
MER as of December 31, 2023 | 1.53% |
Minimum Initial Investment | $500 |
Minimum Subsequent Investment | $100 |
Liquidity | Daily |
RSP Eligible | Yes |
Compound Returns – Series A
1 Month | 3 Months | YTD | 1 Year | 3 Year (Annualized) |
5 Year (Annualized) |
Since Inception (Annualized) |
|
---|---|---|---|---|---|---|---|
Fund | 3.3% | 9.9% | 9.9% | 14.6% | 2.4% | 4.1% | 1.9% |
Benchmark | 3.5% | 9.6% | 9.6% | 13.5% | 1.4% | 4.3% | 1.9% |
Calendar Year Returns – Series A
Top 10 Holdings
Security | % of Fund |
---|---|
TORONTO DOMINION PREFERRED | 4.7% |
CIBC $1000 PREFERRED 7.365% | 3.4% |
BANK OF MONTREAL $1000 PREFERRED 7.37% | 2.9% |
ROYAL BANK OF CANADA $1000 PREFERRED 7.408% | 2.9% |
BANK OF MONTREAL $1000 PREFERRED 7.057% | 2.9% |
TC ENERGY CORP PREFERRED | 2.4% |
ALTAGAS LTD PREFERRED | 2.4% |
ROYAL BANK OF CANADA 4.5% LRCN | 2.3% |
FORTIS INC PREFERRED | 2.0% |
CIBC $1000 PREFERRED 7.337% | 2.0% |
Total | 27.9% |
Portfolio Characteristics
Number of Securities | 105 |
Current Yield (%) | 5.4% |
Credit Rating
P1/P2 | 47.8% |
P2/P3 | 13.0% |
P3 | 17.4% |
Cash & Other | 21.8% |
Total | 100.0% |
Structure
Fixed Resets | 65.5% |
Straight Perpetual | 11.1% |
Floater | 1.6% |
Cash & Equivalents | 1.0% |
Other | 20.8% |
Total | 100.0% |
Distributions
- Distribution Frequency: Monthly
- Most Recent Distribution per Unit: $0.0339
- 12-Month Trailing Distribution Yield: 4.1%
- Next Record Date: April 25, 2024
- Next Distribution Date: April 26, 2024
Distributions ($)/Unit2 | YTD* | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
---|---|---|---|---|---|---|---|---|---|---|
Total Distributions | 0.0997 | 0.3340 | 0.3040 | 0.3217 | 0.3305 | 0.3151 | 0.3854 | 0.3809 | 0.2855 | 0.1451 |
Interest | – | 0.0074 | 0.0027 | 0.0033 | – | – | – | – | – | – |
Dividends | – | 0.3266 | 0.3013 | 0.2285 | 0.3305 | 0.3151 | 0.2886 | 0.2926 | 0.2855 | 0.1438 |
Capital Gains | – | – | – | – | – | – | 0.0968 | 0.0883 | – | – |
Withholding Tax | – | – | – | – | – | – | – | – | – | – |
Return of Capital | – | – | – | 0.0898 | – | – | – | – | – | 0.0013 |
Lysander Funds Limited is the investment fund manager of Lysander-Slater Preferred Share Dividend 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.
1TSX © Copyright 2024 TSX Inc. All Rights Reserved.
2Distributions 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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