Lysander-Fulcra Corporate Securities Fund – Series A
- Fund Code: LYZ935A
- Portfolio Manager: Fulcra Asset Management Inc.
- As of: March 31, 2024
- Asset Class: Fixed Income
- CIFSC Category: High Yield Fixed Income
- Benchmark: Absolute Return 5% per annum
Investment Focus
The fund invests primarily in fixed income securities of small and mid-cap companies with the tactical inclusion of equity investments. It is unconstrained both geographically and by credit quality.
Risk Tolerance
Why Invest in this Fund?
Fulcra Asset Management, founded in 2009, is an independent credit specialist based in Vancouver. Fulcra is dedicated to preserving capital and generating consistent absolute returns for investors. Fulcra employs a fundamental value investing approach to identify underpriced corporate securities.
- Fulcra is credit ratings agnostic, leveraging the information advantage of independent research. By investing in misunderstood investment scenarios, under-appreciated and high-yielding securities, Fulcra seeks to generate strong long-term returns with lower volatility.
- Fulcra invests across issuers’ capital structure with a preference for the senior securities due to their contractual nature but will occasionally capture value by investing in mispriced equity-like securities.
- Fulcra is dedicated to preserving capital and generating consistent absolute returns for investors. Fulcra employs a fundamental value investing approach to identify underpriced corporate securities, with the goal of outperforming in both good and bad market conditions.
Fund Facts
Inception Date | December 30, 2016 |
Currency | CAD |
Fund AUM | $549.8 Million |
NAVPU | $9.76 |
Management Fee | 1.35% |
MER as of December 31, 2023 | 1.55% |
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) |
---|---|---|---|---|---|---|
0.1% | 1.1% | 1.1% | 7.5% | 3.7% | 5.1% | 4.8% |
Calendar Year Returns – Series A
Top 10 Holdings
Security | % of Fund | Rating |
---|---|---|
ATDBCN 3.056 Jul/26/2024 | 4.2% | BBB+ |
CAN 3.000 11/1/2024 | 3.7% | AAA |
T 2.500 5/31/2024 | 3.5% | AA+ |
CAN 3.750 2/1/2025 Corp | 3.4% | AAA |
RUSCN 5.75 10/27/25 | 3.1% | BB |
Rogers Communications Inc 5% Dec 17, 2081 | 2.9% | BB |
Canada 0.75% Oct 1, 2024 | 2.6% | AAA |
Canada 2.5% Jun 1, 2024 | 2.6% | AAA |
Geo Group TL 1 B | 2.6% | B+ |
NFICN 5% 1/15/2027 | 2.3% | Not Rated |
Total | 30.9% |
Credit Quality Breakdown
AAA | 21.5% |
AA | 4.7% |
A | 1.9% |
BBB | 10.5% |
BB | 22.9% |
B | 15.7% |
CCC | 4.4% |
Not Rated | 18.4% |
Portfolio Characteristics
Number of Securities | 99 |
Number of Issuers | 58 |
Average Term to Maturity (Years) | 2.2 |
Average Duration (Years) | 1.6 |
Average Coupon (%) | 5.2% |
Yield to Maturity (%) | 8.4% |
Current Yield (%) | 5.7% |
Average Credit Quality | BBB |
Average Bond Price | $95.84 |
Cash Weighting | -1.9% |
Asset Mix
Cash & Equivalents | -2.0% |
Common Stock | 1.2% |
Convertible Bonds | 9.0% |
Corporate Bonds | 58.2% |
Government Bonds | 26.2% |
Corporate Loans | 6.7% |
Preferred Shares | 0.7% |
Geographic Breakdown
Canada | 71.7% |
USA | 26.5% |
Other | 1.8% |
Distributions
- Distribution Frequency: Quarterly
- Most Recent Distribution per Unit: $0.1016
- 12-Month Trailing Distribution Yield: 4.4%
- Next Record Date: June 20, 2024
- Next Distribution Date: June 21, 2024
Distributions ($)/Unit1 | YTD* | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 |
---|---|---|---|---|---|---|---|---|
Total Distributions | 0.1016 | 0.4698 | 0.4411 | 0.6863 | 0.6943 | 0.5776 | 0.3782 | 0.2685 |
Interest | – | 0.4661 | 0.4313 | 0.3928 | 0.3879 | 0.3547 | 0.3445 | 0.1815 |
Dividends | – | 0.0056 | 0.0108 | 0.0174 | 0.0155 | 0.0327 | 0.0337 | 0.0185 |
Capital Gains | – | – | – | 0.2761 | 0.2909 | 0.1902 | – | 0.0704 |
Withholding Tax | – | (0.0019) | (0.0009) | – | – | – | – | (0.0020) |
Lysander Funds Limited is the investment fund manager of Lysander-Fulcra Corporate Securities 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.
1Distributions 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.
LSEG Lipper Fund Awards Canada 2023
Lysander-Fulcra Corporate Securities Fund (Series F) was named Best High Yield Fixed Income Fund for 3 years ending July 31, 2023, out of a classification total of 39 funds (3 years). The corresponding LSEG Lipper Leader for Consistent Return ratings of the fund for the period ended July 31, 2023 were: N/A (1 year), 5 (3 years), and 5 (5 years). Performance for the fund (Series F) for the period ended March 31, 2024 was 8.1% (1 year), 4.2% (3 years), 5.6% (5 years) and 5.3% (since inception – Dec 30, 2016).
The LSEG Lipper Fund Awards Canada, granted annually, highlight funds and fund companies that have excelled in delivering consistently strong risk-adjusted performance relative to their peers. The LSEG Lipper Fund Awards are based on the Lipper Leader for Consistent Return rating, which is an objective, quantitative, risk-adjusted performance measure calculated over 36, 60 and 120 months. The fund with the highest Lipper Leader for Consistent Return (Effective Return) value in each eligible classification wins the LSEG Lipper Fund Award. For more information, see lipperfundawards.com. Although LSEG Lipper makes reasonable efforts to ensure the accuracy and reliability of the data used to calculate the awards, their accuracy is not guaranteed. Note: The Lipper Leader Ratings for each fund are subject to change every month.
LSEG Lipper Fund Awards, ©2024 LSEG. All rights reserved. Used under license.
Lysander-Fulcra Corporate Securities Fund was awarded the 2023 Fundata FundGrade A+® Award in the High Yield Fixed Income Category, out of 161 funds. The FundGrade start date was 1/31/2017 and FundGrade end date was 12/31/2023. Performance for the fund (Series A) for the period ended March 31, 2024 was 7.5% (1 year), 3.7% (3 years), 5.1% (5 years) and 4.8% (since inception – December 30, 2016).
FundGrade A+® is used with permission from Fundata Canada Inc., all rights reserved. The annual FundGrade A+® Awards are presented by Fundata Canada Inc. to recognize the “best of the best” among Canadian investment funds. The FundGrade A+® calculation is supplemental to the monthly FundGrade ratings and is calculated at the end of each calendar year. The FundGrade rating system evaluates funds based on their risk-adjusted performance, measured by Sharpe Ratio, Sortino Ratio, and Information Ratio. The score for each ratio is calculated individually, covering all time periods from 2 to 10 years. The scores are then weighted equally in calculating a monthly FundGrade. The top 10% of funds earn an A Grade; the next 20% of funds earn a B Grade; the next 40% of funds earn a C Grade; the next 20% of funds receive a D Grade; and the lowest 10% of funds receive an E Grade. To be eligible, a fund must have received a FundGrade rating every month in the previous year. The FundGrade A+® uses a GPA-style calculation, where each monthly FundGrade from “A” to “E” receives a score from 4 to 0, respectively. A fund’s average score for the year determines its GPA. Any fund with a GPA of 3.5 or greater is awarded a FundGrade A+® Award. For more information, see www.FundGradeAwards.com. Although Fundata makes every effort to ensure the accuracy and reliability of the data contained herein, the accuracy is not guaranteed by Fundata. Note: The FundGrade ratings for each fund are subject to change every month.
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