Key Takeaways
- • Dynamic Funds launched Dynamic Credit Opportunities Fund on October 11, 2023, a liquid alternative solution designed to navigate volatile macroeconomic conditions through flexible credit allocation strategies.
- • The fund seeks absolute returns across a complete market cycle by deploying long and short positions primarily in corporate debt securities, including investment-grade bonds, high-yield bonds, preferred shares, hybrids, and loans.
- • Marc-André Gaudreau, Vice President & Senior Portfolio Manager, leads the portfolio management team with nearly two decades of fixed-income credit experience, employing a top-down and bottom-up investment process focused on risk/reward analysis.
- • The fund structure includes multiple share classes (Series A, Series F, Series FH, and ETF Series), with an updated performance fee hurdle rate cap raised to 6% effective at launch.
- • The strategy targets enhanced risk-adjusted returns by capitalizing on shifting credit opportunities while managing downside risk through diversification across multiple asset classes and positioning flexibility.
Summary
Dynamic Funds announced the launch of Dynamic Credit Opportunities Fund on October 11, 2023, introducing a new liquid alternative investment solution positioned to address current macroeconomic uncertainty. The fund represents an expansion of Dynamic Funds' credit-focused offerings and reflects management's strategic response to the challenge of navigating continuously shifting market conditions.
The fund's core investment objective is to generate absolute returns over a complete market cycle through a flexible, actively managed approach. It employs both long and short positions primarily in corporate debt securities, with exposure across the full credit spectrum including investment-grade corporate bonds, high-yield bonds, preferred shares, hybrids, and loans. This multi-asset-class approach within fixed income allows the portfolio management team to identify and capitalize on opportunities as they emerge while actively managing portfolio risk across market cycles.
Marc-André Gaudreau leads the fund as Vice President & Senior Portfolio Manager, heading a team with nearly two decades of collective experience in fixed-income credit management. The team employs a comprehensive investment process combining top-down macroeconomic analysis with bottom-up security selection, with particular emphasis on evaluating the risk/reward relationship of individual investments within the context of a diversified portfolio.
The fund launched with multiple share class options—Series A, Series F, Series FH, and an ETF Series—offering investors flexibility in fee structures and account types. As of the launch date, Dynamic Funds raised the fund's performance fee hurdle rate cap to 6%, and the fund's French-language designation was updated to Fonds d'opportunités de crédit Dynamique. The product structure as an alternative mutual fund permits investment strategies and asset classes not available to conventional mutual funds, expanding the portfolio management team's tactical flexibility.
The fund's core investment objective is to generate absolute returns over a complete market cycle through a flexible, actively managed approach. It employs both long and short positions primarily in corporate debt securities, with exposure across the full credit spectrum including investment-grade corporate bonds, high-yield bonds, preferred shares, hybrids, and loans. This multi-asset-class approach within fixed income allows the portfolio management team to identify and capitalize on opportunities as they emerge while actively managing portfolio risk across market cycles.
Marc-André Gaudreau leads the fund as Vice President & Senior Portfolio Manager, heading a team with nearly two decades of collective experience in fixed-income credit management. The team employs a comprehensive investment process combining top-down macroeconomic analysis with bottom-up security selection, with particular emphasis on evaluating the risk/reward relationship of individual investments within the context of a diversified portfolio.
The fund launched with multiple share class options—Series A, Series F, Series FH, and an ETF Series—offering investors flexibility in fee structures and account types. As of the launch date, Dynamic Funds raised the fund's performance fee hurdle rate cap to 6%, and the fund's French-language designation was updated to Fonds d'opportunités de crédit Dynamique. The product structure as an alternative mutual fund permits investment strategies and asset classes not available to conventional mutual funds, expanding the portfolio management team's tactical flexibility.
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