Canso Credit Income Fund Closes Initial Public Offering at $140 Million

TORONTO, July 16 /CNW/ - Lysander Funds Limited ("Lysander") is pleased to announce that Canso Credit Income Fund (the "Fund") has completed its initial public offering of 11,395,678 Class A units and 2,604,322 Class F units (collectively, the "Units") at a price of $10.00 per Unit. The Class A units commence trading on the Toronto Stock Exchange on July 16, 2010 under the symbol PBY.UN. The Class F units are designed for fee-based and/or institutional accounts and will not be listed on a stock exchange, but are convertible into Class A units on a monthly basis.

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 Fund has granted the agents for the offering an over-allotment option to acquire additional Class A units exercisable anytime during the next thirty days.

The syndicate of agents for the offering was led by RBC Capital Markets and includes CIBC World Markets Inc., 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 Private Wealth Inc., 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.

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