Dynamic Funds Management Ltd. has launched the Dynamic RetirementEdge Income Portfolios, a versatile retirement solution offering three options to meet the financial needs of investors at different stages of life.

The series of deposit notes is built with seven of Dynamic’s top mutual funds and has a fixed low annual fee. While offering steady capital distributions, indexed to inflation, Dynamic RetirementEdge Income Portfolios offer the growth potential of equities, the comfort of reliable cash flow, tax deferral and non-taxable capital distributions in retirement as well as automatic asset allocation that grows more conservative over time.

“Traditional retirement solutions were designed to meet the needs of a different generation,” says David Goodman, president and CEO of Dynamic Funds. “Today Canadians are enjoying a longer, more active life and need a dependable income stream that does not compromise the ongoing growth of their investments. The Dynamic RetirementEdge Income PortfoliosTM support the complex needs of investors as they prepare to draw on their savings in retirement.”

Three versions of the Deposit Notes are available to investors:

i) Current Pay Notes: monthly distribution begin immediately, at an annual rate of 6.6% of the original deposit amount, indexed to inflation. The notes mature on May 27, 2022.

ii) Deferred 5 Notes: monthly distributions begin in year six, at an annual rate of 6.6% of the higher of current market value or original deposit amount, indexed to inflation. The notes mature on May 28, 2027.

iii) Deferred 10 Notes: monthly distributions begin in year 11, at an annual rate of 6.6% of the higher of current market value or original deposit amount, indexed to inflation. The Notes mature on May 28, 2032.

Dynamic RetirementEdge Income Portfolios invest in seven leading Dynamic funds with proven long-term track records, including: Dynamic Advantage Bond Fund, Dynamic Value Fund of Canada, Dynamic Dividend Fund, Dynamic Power Canadian Growth Fund, Dynamic Global Dividend Value Fund, Dynamic Global Value Fund and Dynamic Global Discovery Fund. The asset allocation in each deposit note fund portfolio follows a lifecycle approach, becoming more conservative over the term of the notes.

The deposit notes will be issued by Bank of Montreal on or about May 24 and are 100% eligible for registered plans. The complete terms of the offerings are set out in the information statements dated March 12 relating to the deposit notes.