Lysander Announces Initial Public Offering of "Canso Credit Income Fund"

TORONTO, May 21 /CNW/ - Lysander Funds Limited ("Lysander") announces the filing of a preliminary prospectus for the Canso Credit Income Fund with the securities regulatory authorities of all of the Canadian provinces. The Fund will be managed by Lysander and is offering Class A and Class F units (collectively, the "Units") at a price of $10.00 per Unit.

The Fund will give unitholders exposure to a diversified portfolio consisting primarily of corporate bonds (the "Portfolio"). The Portfolio will be actively managed by Canso Investment Counsel Ltd. ("Canso"). With over $4.0 billion in assets under management, Canso believes that it has assembled one of Canada's largest and most experienced teams of corporate bond and credit professionals. Canso was founded in 1997 by John Carswell, and today manages a wide range of credit portfolios ranging from investment grade to distressed debt. Canso will utilize its proprietary credit analysis and trading expertise to vary the exposure to credit risk in the Portfolio over time during the credit cycle according to the opportunities presented in the market.

The Canso Corporate Value Fund, which employs a substantially similar investment strategy to that which is expected to be employed for the Portfolio, has produced a compound annual return of 10.4% per annum since its inception on December 31, 2000, net of fees and expenses. Moreover, the Canso Corporate Value Fund has not experienced a negative annual return since its inception.

The Fund will seek to achieve the following investment objectives: (i) to maximize total returns for unitholders, on a tax-advantaged basis, while reducing risk; and (ii) to provide unitholders with attractive monthly tax-advantaged cash distributions, initially targeted to be $0.50 per Unit per annum, representing an annual yield of 5.00% based on the original issue price of $10.00 per Unit. Distributions are expected to be primarily return of capital for tax purposes.

The syndicate of agents for the offering is being led by RBC Capital Markets and includes CIBC, BMO Capital Markets, Scotia Capital Inc., National Bank Financial Inc., GMP Securities L.P., Dundee Securities Corporation, Canaccord Genuity Corp., HSBC Securities (Canada) Inc., Macquarie Capital Markets Canada Ltd., Raymond James Ltd. and Wellington West Capital Markets Inc.

This press release contains forward-looking statements. The statements that are concerning Canso's objectives, goals, strategies, intentions, plans, beliefs, expectations and estimates, and the business, operations, financial performance and condition of Canso Credit Income Fund are forward-looking statements. The words "believe", "expect", "anticipate", "estimate", "intend", "may", "will", "would" and similar expressions and the negative of such expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements are subject to important risks and uncertainties that could cause actual results to differ materially from current expectations. While Canso considers these risks and uncertainties to be reasonable based on information currently available, they may prove to be incorrect.

A preliminary prospectus dated May 20, 2010 containing important information relating to these securities has been filed with the securities commissions or similar authorities in all of the provinces of Canada. The preliminary prospectus is still subject to completion or amendment. Copies of the preliminary prospectus can be obtained from any of the agents and is available on www.sedar.com.

For further information: Lysander Funds Limited: Richard Usher-Jones, President, [phone]