Toronto-based Dynamic Funds launched a liquid alternative fund Monday for investors seeking retirement income in a low-rate environment.
The Dynamic Retirement Income+ Fund invests primarily in dividend-paying or distribution-paying equity securities, a release said. The fund can use leverage through borrowing, derivatives and short-selling, and aims to provide returns with lower correlations to major equity and bond indexes.
“In today’s low-yield environment, the traditional approach to investing may not provide adequate retirement income — particularly as investors’ retirement years can now stretch to 20 years or more,” said Mark Brisley, Dynamic’s managing director, in the release.
“The good news is that with dividend yields currently elevated, now is an opportune time to invest in companies that can generate sustainable levels of income.”
Managed by senior vice-president and portfolio manager Oscar Belaiche, the fund’s risk rating is low-medium and the management fee is 1.8% on series A.
Dynamic Funds is a division of 1832 Asset Management L.P.