Toronto-based Dynamic Funds on Tuesday announced the launch of Dynamic Premium Bond Private Pool, a new investment product that aims to provide attractive income over the interest rate and credit cycle, as well as some long-term capital appreciation.
“In today’s investment environment where yields are low and the future path of interest rates is uncertain, we believe that investors can benefit from an active approach to meeting their income needs,” says Jordy Chilcott, president & CEO, Dynamic Funds, in a statement.
“A distinguishing feature of the pool is its allocation to a well-tested options writing strategy that adds a unique element of diversification,” he adds.
The pool seeks to provide income and some long-term capital appreciation by investing primarily in a diversified portfolio of fixed income securities, according to Dynamic. It may also use a broad range of options strategies on equity securities to further diversify the portfolio.
The pool aims to be diversified by investment style, credit quality and geographic region, and the class version of the pool offers certain tax advantages within a corporate class structure.
The pool will be managed by Toronto-based 1832 Asset Management L.P.
The new product is the latest addition to the Dynamic Private Investment Pool lineup, an exclusive and diverse suite of investment solutions for investors working with advisors on a fee-based platform, including those licensed as a portfolio manager.