A strategy with lower correlation to stock markets that generates monthly income — interested?
Monthly income, diversification and active management: the profile of a fund designed for lower correlation with stock markets.
Fund name: Dynamic Strategic Yield Fund – Series F
Why invest in this fund?
- Stable monthly income: The fund pays regular monthly distributions, which is ideal for investors seeking a steady income (e.g., retirees or those who want to supplement their income).
- Balanced diversification: It combines bonds, Canadian and U.S. equities, and specialty investments.
- Growth potential: In addition to income, the fund also aims for long-term capital appreciation.
- Active management: An experienced team actively adjusts the portfolio to seize opportunities and reduce risk.
- Low to medium risk tolerance: Suitable for investors who want a good balance between stability and returns.
Monthly distributions: why are they attractive?
- They provide a predictable income every month.
- This can help you plan a budget or reinvest automatically to grow your capital.
- Ideal for those who want to live off their investments without having to sell units.
Return of capital (ROC) in a taxable account: a tax advantage
- A portion of the distributions may be classified as return of capital.
- This means that this amount is not immediately taxable.
- It reduces the purchase cost of the units, which defers the tax until they are sold.
- The result: less tax to pay now, which can improve your after-tax return.
Historical performance
With an annual distribution of 11%, this fund offers a stable, tax-efficient income, making it a far better option than a traditional savings account or a guaranteed investment certificate (GIC). Unlike fixed-rate banking products, this fund not only generates a regular monthly income, but also helps maximize after-tax returns, notably through the use of return of capital in non-registered accounts. It is an ideal solution for investors seeking steady income while maintaining long-term growth potential.
To book an appointment →What to Keep in Mind Before Investing
The information above is provided for informational purposes only and does not constitute a personalized recommendation. As with any mutual fund, the value of the units fluctuates and is not guaranteed — unlike a GIC, your capital is not protected. Past performance is not indicative of future results.
Monthly distributions are not guaranteed either: their amount can be changed or reduced by the fund manager. And when part of a distribution is a return of capital, it is not income earned by the fund, but a portion of your own capital being handed back to you — an important nuance before comparing it with a fixed-rate product.
Lower Correlation Does Not Mean No Risk
Alternative strategies, including private debt, aim for lower correlation with stock markets. That can help diversify a portfolio, but it does not make it immune to losses: borrower credit risk, sensitivity to interest rates and less frequent valuations than publicly traded securities are all part of the reality of these investments.
Liquidity deserves particular attention. Some underlying assets can be difficult to sell quickly, and mechanisms limiting redemptions could apply in exceptional market conditions. This type of strategy is generally suited to a medium- to long-term investment horizon, not to money you might need in the short term.
A Decision That Depends on Your Profile
Before any purchase, it is essential to read the fund facts document and the prospectus, to understand the fees and the tax treatment depending on the type of account, and to confirm that the investment matches your risk tolerance, your goals and your horizon.
The Pérennité Wealth Management team can help you assess what place — large, small or none at all — such a strategy might have in your portfolio, based on your situation. Contact us to discuss it.
