Lysander Corporate Value Bond Fund - Lysander Funds
Lysander Corporate Value Bond Fund As of December 31, 2014
Investing from the ground up
Objective 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.
LYZ 801A/801F LYZ 801A5/F5
Fund Information
Investment Approach and Philosophy Canso Investment Counsel is an independent investment manager with a focus on corporate credit managing over $15 billion AUM. The investment team consists of 5 senior investment professionals, each with 20+ years’ experience and 14 additional analysts with experience in corporate bond, equity, corporate banking, and bondrating agency backgrounds. The Canso investment approach is focused on fundamental research & security selection. Canso believes that cheap investments are not popular and buyers must do independent research to find under-valued securities. Canso does not make investment decisions based on macro-viewpoints like term or yield curve forecasting. Canso’s proprietary research emphasizes “bottom up” and “deep value” credit analysis, concentrating on the selection of individual securities. This independent credit expertise & investment management experience enables Canso to buy securities when they are out of favour and priced cheaply. Typically, investments are purchased with the intention to be held to maturity, however, when market prices exceed valuation expectations or a better value security is discovered, the securities may be sold. The portfolio managers will also shift to higher quality securities if risk premiums are not attractive enough.
Performance* Calendar Year Annual Returns as at December 31:
Series A Series F
2014
2013
2012
7.6% 8.2%
7.7% 8.3%
8.8% 9.4%
Series A Series F
3 Months
6 Months
YTD
1 Year
-0.1% -0.1%
2.5% 2.6%
3.4% 3.7%
7.6% 8.2%
7.6% 8.2%
AUM: $849.6 Million Managed by: John Carswell, CFA Canso Investment Counsel Ltd. Benchmark: FTSE TMX Canada Universe Bond Index1 Category: Fixed Income Distribution: Class A/ F Quarterly Class A5/F5 Monthly 5%/Annum Min Investment: $5,000 Subsequent:
$100
Liquidity:
Daily
Portfolio Analysis Yield to Maturity:
3.9%
Current Yield:
4.7%
Term to Maturity:
5.4 years
Duration:
3.3 years
Avg Credit Quality2: BBB+ # of Holdings: 120
Returns as at December 31, 2014: 1 Month
Inception Date: Dec 23, 2011
Since Inception (Annualized) 8.0%3 8.7%4
Series A NAV: $11.05 Series F NAV: $12.34 Series A5 NAV:$10.00 Series F5 NAV:$10.00 Series A&A5 Management Fee: 1.25% Series F&F5 Management Fee: 0.75% *Series A MER: 1.57% *Series F MER:
1.00%
*June 30, 2014
*Performance of Series A and F are different as these units are charged different management fees. Please see the prospectus for more details. 3 Since inception December 28, 2011 4 Since Inception December 23, 2011
Risk Tolerance Low
Medium
High
Lysander Funds Ltd. 100 York Blvd. Suite 501, Richmond Hill, ON, L4B 1J8, 416-640-4275 or 1-877-308-6979 www.lysanderfunds.com
Lysander Corporate Value Bond Fund
Investing from the ground up
Credit Quality Unrated 13%
Sector
Publishing /Printing 6%
Federal 14%
AAA/AA 29%
Real Estate 1% Energy 1%
Infrastructure 2%
BB and Below 34%
Communication 20%
A 10% BBB 14%
Industrial 3%
Financial 52%
Securitization 1%
Top 10 Holdings as of December 31, 2014 Security Name
% Holding
Rating
Met Life Global Funding I 2.3% April 10, 2019 (144A) USD
4.5
AA-
TD Dep Note. 3.226% Jul 24, 2024
4.1
AA
YPG Financing Inc. 9.25% Nov 30, 2018
3.9
B-
Blackberry Ltd. 6% Nov 13, 2020
3.7
NR
Lloyds Bank PLC 10.125% December 16, 2016/2021
3.6
BBB-
Navient Corp 5.5% Jan 25, 2023(USD)
3.5
BB-
Royal Bank of Scotland Group Tier 1 6.666% Oct 5, 2017
3.5
B+
Yellow Media Ltd. Commerzbank AG Sub-debt FRN Dec 15, 2016 (Q CDOR +88)
3.1 2.4
BB
Depfa Bank PLC FRN Dec 15, 2015 (Q EURIBOR +70) Total
2.4
CCC-
34.7
See the Simplified Prospectus for more details on the Lysander Corporate Value Bond Fund (“Fund”). This document is not an invitation to invest in the Fund, nor does it constitute a public offering of sale. 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 the historical annual compounded total returns for the period indicated 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 unit holder that would have reduced returns. Mutual funds are not guaranteed or insured, their values change frequently and past performance may not be repeated. 1 2
Source: FTSE TMX, a business unit of TSX Inc. Copyright © TSX Inc. All rights reserved. Securities unrated by external agencies are assigned an internal Canso credit rating for Average Credit Quality.
Lysander Funds Ltd. 100 York Blvd. Suite 501, Richmond Hill, ON, L4B 1J8, 416-640-4275 or 1-877-308-6979 www.lysanderfunds.com
Investing from the ground up
Objective 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.
LYZ 801A/801F LYZ 801A5/F5
Fund Information
Investment Approach and Philosophy Canso Investment Counsel is an independent investment manager with a focus on corporate credit managing over $15 billion AUM. The investment team consists of 5 senior investment professionals, each with 20+ years’ experience and 14 additional analysts with experience in corporate bond, equity, corporate banking, and bondrating agency backgrounds. The Canso investment approach is focused on fundamental research & security selection. Canso believes that cheap investments are not popular and buyers must do independent research to find under-valued securities. Canso does not make investment decisions based on macro-viewpoints like term or yield curve forecasting. Canso’s proprietary research emphasizes “bottom up” and “deep value” credit analysis, concentrating on the selection of individual securities. This independent credit expertise & investment management experience enables Canso to buy securities when they are out of favour and priced cheaply. Typically, investments are purchased with the intention to be held to maturity, however, when market prices exceed valuation expectations or a better value security is discovered, the securities may be sold. The portfolio managers will also shift to higher quality securities if risk premiums are not attractive enough.
Performance* Calendar Year Annual Returns as at December 31:
Series A Series F
2014
2013
2012
7.6% 8.2%
7.7% 8.3%
8.8% 9.4%
Series A Series F
3 Months
6 Months
YTD
1 Year
-0.1% -0.1%
2.5% 2.6%
3.4% 3.7%
7.6% 8.2%
7.6% 8.2%
AUM: $849.6 Million Managed by: John Carswell, CFA Canso Investment Counsel Ltd. Benchmark: FTSE TMX Canada Universe Bond Index1 Category: Fixed Income Distribution: Class A/ F Quarterly Class A5/F5 Monthly 5%/Annum Min Investment: $5,000 Subsequent:
$100
Liquidity:
Daily
Portfolio Analysis Yield to Maturity:
3.9%
Current Yield:
4.7%
Term to Maturity:
5.4 years
Duration:
3.3 years
Avg Credit Quality2: BBB+ # of Holdings: 120
Returns as at December 31, 2014: 1 Month
Inception Date: Dec 23, 2011
Since Inception (Annualized) 8.0%3 8.7%4
Series A NAV: $11.05 Series F NAV: $12.34 Series A5 NAV:$10.00 Series F5 NAV:$10.00 Series A&A5 Management Fee: 1.25% Series F&F5 Management Fee: 0.75% *Series A MER: 1.57% *Series F MER:
1.00%
*June 30, 2014
*Performance of Series A and F are different as these units are charged different management fees. Please see the prospectus for more details. 3 Since inception December 28, 2011 4 Since Inception December 23, 2011
Risk Tolerance Low
Medium
High
Lysander Funds Ltd. 100 York Blvd. Suite 501, Richmond Hill, ON, L4B 1J8, 416-640-4275 or 1-877-308-6979 www.lysanderfunds.com
Lysander Corporate Value Bond Fund
Investing from the ground up
Credit Quality Unrated 13%
Sector
Publishing /Printing 6%
Federal 14%
AAA/AA 29%
Real Estate 1% Energy 1%
Infrastructure 2%
BB and Below 34%
Communication 20%
A 10% BBB 14%
Industrial 3%
Financial 52%
Securitization 1%
Top 10 Holdings as of December 31, 2014 Security Name
% Holding
Rating
Met Life Global Funding I 2.3% April 10, 2019 (144A) USD
4.5
AA-
TD Dep Note. 3.226% Jul 24, 2024
4.1
AA
YPG Financing Inc. 9.25% Nov 30, 2018
3.9
B-
Blackberry Ltd. 6% Nov 13, 2020
3.7
NR
Lloyds Bank PLC 10.125% December 16, 2016/2021
3.6
BBB-
Navient Corp 5.5% Jan 25, 2023(USD)
3.5
BB-
Royal Bank of Scotland Group Tier 1 6.666% Oct 5, 2017
3.5
B+
Yellow Media Ltd. Commerzbank AG Sub-debt FRN Dec 15, 2016 (Q CDOR +88)
3.1 2.4
BB
Depfa Bank PLC FRN Dec 15, 2015 (Q EURIBOR +70) Total
2.4
CCC-
34.7
See the Simplified Prospectus for more details on the Lysander Corporate Value Bond Fund (“Fund”). This document is not an invitation to invest in the Fund, nor does it constitute a public offering of sale. 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 the historical annual compounded total returns for the period indicated 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 unit holder that would have reduced returns. Mutual funds are not guaranteed or insured, their values change frequently and past performance may not be repeated. 1 2
Source: FTSE TMX, a business unit of TSX Inc. Copyright © TSX Inc. All rights reserved. Securities unrated by external agencies are assigned an internal Canso credit rating for Average Credit Quality.
Lysander Funds Ltd. 100 York Blvd. Suite 501, Richmond Hill, ON, L4B 1J8, 416-640-4275 or 1-877-308-6979 www.lysanderfunds.com
