How to Succeed in a Wide Range of Market Conditions

We all know that markets inevitably go through cycles. While the stock market marches steadily higher over time, there are always periods of market pullback, or correction. You need only look to the dot-com collapse of 2000 or the credit crisis of 2008 to remember the most recent examples of significant market downturns—and the subsequent toll they took on investment statements.

As an investor, you want to be confident that your investment manager is backed by a rigorous process that can help them to add value in all market conditions—both when markets are up, and when they are down.

 

The power of a proven investment process

Having a sophisticated, replicable process is one way that investment managers can distinguish themselves. MD Precision™ is MD’s patent-pending, proprietary fund management process designed to help increase the probability of strong, long-term performance.

MD Precision combines MD’s decades of experience with the expertise of specialist asset managers from around the world.

MD Precision in action: a track record of building long-term wealth

Through bull and bear markets, MD Funds have demonstrated the ability to build consistent value for their investors. As illustrated by the graph below, the value of $10,000 invested in MD Funds in 1990 generated an additional $6,258 compared to the benchmark. Over that period, MD Funds delivered an annualized rate of return of 7.0%.

In addition to healthy participation in market upswings, MD Funds provided greater downside protection compared to the market during times of market crisis.

By viewing the graph below, we can further drill down to see how the MD Funds fared during two notable periods of market correction: the dot-com collapse and credit crisis. MD’s asset managers outpaced the market by 15.0% during the information technology dot-com crisis and by 5.8% during the more-recent financial credit crisis. A combination of skillful and consistent application of the rigorous MD Precision process helped MD Funds to outperform the market during these periods.

 

Choosing the right manager matters

Your investment manager is critical to the success of your wealth plan. MD’s experience and disciplined adherence to its proven MD Precision process can give you confidence through a wide range of market conditions.

Contact an Advisor to find out how we can help or learn more about MD's investments offering.

 

1 For pre-May 2003 returns: Based on a blend of MD Equity Fund (30%), MD Growth Investments Limited (30%) and MD Bond Fund (40%); using a blend of the underlying Fund benchmarks, which are S&P/TSX Composite Index (21%), MSCI World Index (39%) and FTSE/TMX Universe Bond Index (40%).

For May 2003-December 2017 returns: Based on a blend of the MDPIM Canadian Bond Pool, MDPIM Canadian Long Term Bond Pool, MDPIM Canadian Equity Pool, MDPIM Dividend Pool, MDPIM US Equity Pool and MDPIM International Equity Pool; using the following benchmarks, respectively: FTSE TMX Canada Short Term and FTSE TMX Canada Mid Term Bond Indexes (blended 60%/40%), FTSE TMX Canada Long Term Bond Index, S&P/TSX Capped Composite Index (for both the MDPIM Canadian Equity Pool and MDPIM Dividend Pool), the S&P 500 Index and MSCI EAFE Index. The MDPIM Emerging Markets Equity Pool uses the MSCI Emerging Markets Index as a benchmark.

 

 

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