Goodman & Co., Investment Counsel Ltd. today announced the launch of the Dynamic Advantage Bond Fund.

Goodman & Co. describes the fund as a core Canadian bond fund that offers consistent exposure to a minimum of four different categories of bonds, which helps smooth portfolio returns while lowering overall risk.

The fund will be managed using a 4 x 25% model consisting of government bonds, investment grade corporate bonds (including commercial mortgage-backed securities), real-return bonds and high-yield bonds. These generally display a low correlation to one another. In addition, up to 10% of the fund may be invested in floating rate notes and convertible debentures.

By actively managing a portfolio of primarily Canadian fixed-income securities, the fund aims to offer maximum income and capital returns to investors. Quarterly distributions will be fixed at 4.5¢ per unit (for Series A) representing a yield of 3.6%, based on the initial $5 net asset value. This distribution will be reviewed annually, beginning in December 2006.

The fund will be managed by Michael McHugh, who has almost two decades of experience managing fixed-income portfolios and has been the lead manager for Dynamic Funds’ in-house fixed-income products since 1998. McHugh is well-known for his ability to employ a dedicated and disciplined process to reduce risk and generate positive relative performance.

The fund was created by the merger of the Dynamic World Convertible Debentures Fund and the Dynamic Corporate Bond Fund, as part of a major initiative to simplify and enhance Dynamic’s product line-up by eliminating smaller funds and merging them with funds with similar investment objectives. With this initiative Dynamic expects to achieve cost-savings for investors.