National Bank is launching the Monthly Income Fund. The fund is designed to appeal to investors looking for high monthly income that receives advantageous tax treatment.

The monthly income stream consists of dividends, interest, capital gains and return of capital.

National Bank says the asset allocation of the fund ensures optimum diversification due to its mix of four main asset classes: preferred shares, common shares, high-yield bonds and income trusts.

The bank says the fund is ideal for investors with a three-to-five investment horizon. This is the perfect solution for investors who have cash to invest or retirees looking for tax-friendly investment returns.

“In an environment of low interest rates, investors are looking for alternatives to conventional investments. The advantage of this fund is that it can fit right into a diversified portfolio or stand alone,” said Charles Guay, president and COO at National Bank Securities.

The fund will be actively managed by managers at Natcan Investment Management using a dynamic management style that allows the flexibility to adjust the weightings assigned to each asset class as needed.