Dynamic Funds is launching of Dynamic Strategic Yield Fund, the division of Goodman & Co., Investment Counsel Ltd. said Monday.

The fund, managed by Oscar Belaiche and Michael McHugh, seeks to produce high income and long-term capital growth through investment in a diversified portfolio of fixed-income and income-oriented equity securities.

Asset allocation is at the discretion of the portfolio managers and will be modified according to changing economic and market conditions. Asset classes may include, but are not limited to investment grade corporate bonds, dividend-paying common shares, high-yield bonds, preferred shares, convertible bonds, income trusts, government bonds, and real estate investment trusts.

The fund targets a fixed monthly distribution of 5.84¢ per unit — an initial yield of 7% — which is fixed but not guaranteed.

Oscar Belaiche will manage the fund’s equity component and Michael McHugh will be responsible for the bond portion. The two award-winning managers have a combined 50 years of industry experience and both have been recognized for investing excellence in the past year.

Belaiche is also the lead manager of Dynamic Focus+ Diversified Income and Dynamic Dividend Income funds. McHugh’s other mandates include Dynamic Advantage Bond and Dynamic Canadian Bond funds.

“The Dynamic Strategic Yield Fund is a welcome addition to our income-generating fund family,” says David Goodman, president and CEO of DundeeWealth Inc.

“The environment for securities providing yield is, in fact, very attractive. The Dynamic Strategic Yield Fund has the flexibility to cautiously source an attractive yield throughout a business cycle,” adds Goodman.