Fund Profiles

Offering Memorandum Funds

Canso Short Term & Floating Rate Fund

CFM134 A/F
English French

Objectives

The Fund seeks to achieve a total return greater than the return achieved by a representative Canadian fixed income index, such as the DEX Short Term Bond Index.

Canso Canadian Bond Fund

CFM174 A/F
English French

Objectives

The Fund seeks to achieve a total return greater than the return achieved by a representative Canadian fixed income index, such as the DEX Universe Bond Index.

Canso Corporate Bond Fund

CFM124 A/F
English French

Objectives

The Fund seeks to achieve a total return greater than the return achieved by a representative Canadian fixed income index, such as the DEX Corporate Bond Index.

Canso Corporate Value Fund

CFM111 A/F
English French

Objectives

The Fund seeks to achieve above average income returns through a diversified portfolio composed primarily of debt and money market securities. The Fund may occasionally invest in equity securities. The Fund will attempt to manage the allocation among securities to lower the risk of capital loss as the Investment Manager deems appropriate.

Prospectus Funds

Lysander-Canso Short Term & Floating Rate Fund

LYZ805 A/F

Objectives

The Fund’s objective is to provide total returns consisting principally of interest income by investing primarily in short term fixed income and floating rate debt securities of Canadian and foreign issuers.

Lysander-Canso Broad Corporate Bond Fund

LYZ811 A/F

Objective

The Fund’s objective is to earn income and some capital gains by investing primarily in fixed income securities anywhere in the world.

Lysander-Canso Bond Fund

LYZ804 A/F

Objectives

The Fund’s objective is to provide above average, long-term total returns consisting principally of interest income by investing primarily in high-quality Canadian dollar denominated fixed income securities of Canadian and foreign issuers.

Lysander-Canso Corporate Value Bond Fund

LYZ801 A,A5/F,F5

Objectives

The Fund’s objective is to provide above average, long-term total returns consisting of interest income and some capital gains by investing primarily in fixed income securities.

Lysander-Canso U.S Credit Fund (USD)

LYZ808 A/F

Objectives

The Fund’s objective is to achieve long term capital growth of returns consisting of income and some capital gains primarily through investments in U.S. debt and money market securities either denominated in U.S. dollars or hedged to U.S. dollars using forward currency contracts.

Lysander-Canso Balanced Fund

LYZ800 A/F

Objectives

The Fund’s objective is to provide above average, long-term total returns consisting of both income and capital gains by investing primarily in a portfolio of fixed income securities and equities.

Closed-End Funds

Canso Credit Income Fund (CCIF)

TSX Ticker: PBY.UN
English

Objectives

The Fund was created to achieve the following investment objectives (the “Investment Objectives”): (i) to maximize total returns for holders of Units (“Unitholders”), on a tax-advantaged basis, while reducing risk; and (ii) to provide Unitholders with attractive monthly tax-advantaged cash distributions, targeted to be $0.50 per Unit per annum, representing an semi-annual yield of 5.00% based on the original issue price of $10.00 per Unit, by obtaining exposure to the Portfolio which consists primarily of corporate bonds.

About Canso Investment Counsel

Canso Investment Counsel Ltd. (Canso) rejects “efficient market” theory. Canso believes that the financial markets are subject to human emotion and biases and are thus inherently inefficient.

The human predisposition to simplify causes the segmentation of financial assets by credit rating, geography and other issuer characteristics. These create artificial distortions that exacerbate market inefficiencies. Market participants frequently misinterpret or overlook critical information when forming investment opinions. Canso exploits these market inefficiencies by investing in mispriced securities, across the capital structure of issuers on a global basis.

The Canso emphasis on “bottom up” fundamental analysis of issues and issuers avoids overvaluation and concentrates portfolios in undervalued securities. To summarize: “Canso buys cheap stuff”.

Successful investing generates its returns over very long time periods, through the extremes of the economic and market cycles.

At Canso, “Clients Come First”. Canso believes that their singular mission is to deliver the highest possible risk-adjusted returns to those who have entrusted them with funds to manage. Canso believes that Canso clients should have the same opportunities as they have. The Canso staff is restricted to investing exclusively in the Canso funds. They are not allowed to hold any other marketable securities. This ensures that the Canso staff investment interests are aligned with its clients.

The Canso Team:
Canso employs an active management strategy to exploit inefficiencies in the financial markets. Our investment success depends on the experience, knowledge, patience and collaboration of our investment staff. Canso’s investment team consists of over two dozen employees with backgrounds in banking, lending, private placements, research, security analysis and trading. The other Canso staff support the investment team in the investment administration of portfolios and client service.

(1) Canso’s Investment Grade and Broad Corporate bond mandates are in the top quartile of the Pavilion ™ Performance Appraisal Report of Canadian fixed income managers since inception in 1997.

Investment Philosophy

The intensive Canso research approach includes an exhaustive bottom up fundamental review of the business, financial and operational condition and prospects of an issuer. A key differentiator in the Canso process is a detailed review of Credit Agreements, Offering Memorandums and Trust Indentures. Understanding contractually the ranking in the capital structure and the available legal remedies should an investment deteriorate allows management of the downside risk and realization of value of investments when things do not go as planned. This knowledge gives Canso the confidence to invest in securities that others avoid and to avoid securities others are buying.

Independent analysis is the lifeblood of Canso. Personal bias is reduced by avoiding traditional analyst segmentation along asset class and industry lines. The focus is on internal proprietary research. Canso does not rely on external investment dealer analysts or credit rating agencies as part of our investment process. Internal credit ratings and maximum loss estimates are assigned to all of the issues held in our portfolios. The proprietary Canso “Maximum Loss” discipline ensures that Canso maximizes the return potential of selected securities while at the same time safeguarding the overall portfolio against loss on any one position.

The Canso investment team spends much of its time ensuring the consistency and continuity of its investment approach. This ensures that Canso portfolios are prepared to capitalize on opportunity and resists the allure of the latest investment fads.