Markets around the world continue to decline and as we noted in an earlier release, volatility is likely to continue.
How are MD funds and pools performing?
Over the past two weeks of heightened market volatility, our mandates and portfolios have performed in line with our expectations and most have outperformed their benchmarks.
MD Precision PortfoliosTM
5 out of 6 MD Precision PortfoliosTM added value over their respective benchmarks
Non-Canadian equity mandates
Added value against benchmarks and performed well compared to peers
International mandates added more than 2% excess return over its benchmark
Canadian mandates
Benchmark relative performance is mixed: value strategy outperformed while growth strategy underperformed
However, these are in line with our expectations
Alternative mandates
Added value over their benchmarks
MD Strategic Yield Fund returned 2.9% on a year-to-date basis
Fixed income mandates
All mandates have generated positive returns
Short-term and core mandates: relative performance is slightly below benchmarks
Long-term Bond Pool: relative performance is above its benchmark
Why are markets volatile?
Here is a synopsis of the causes of the recent volatility:
Oil prices: Oil prices have lost around 20% this year, which caught the market by surprise as it was already down significantly in 2015.
High-yield market: Creates market volatility in both equity and fixed income and can also impact other credit products.
China: There have been high levels of volatility in the local equity market since last summer.
What is MD doing?
MD’s well-diversified portfolios are built to withstand short-term volatility and we are seeing evidence of this when we look at relative and benchmark performances.
However, our focus is always on long-term results, and we aim to deliver performance that’s consistent with investor goals and time horizons. Our funds and portfolios have fared well over the market volatility experienced so far this year.
Summer 2019: Meaningful diversification with liquid alternative investments
The probability of recession over the next 12 months remains low and global markets continued to ride high despite a bout of volatility in May. Find out what’s in store for the rest of the year.
Spring 2019: MD Platinum Global Private Equity Update
Please join Craig Maddock, Vice President, and Edward Golding, Assistant Vice President with the Investment Management and Strategy team, as they discuss performance, investments, trends and new MD Pl
Assistant Vice Presidents with the IMS team here at MD, chat about the evolution of MDs fixed income solutions and the opportunities that investors should be excited about.
Spring 2019 market outlook: Stock market rebound puts the focus back on the global economy
Global equity markets made a comeback the first quarter of 2019, rebounding from 2018 losses. Read what to expect next, in commentary by the Investment Management and Strategy team at MD Financial.
Despite a highly volatile fourth quarter, 2018 was a strong year for MD funds and portfolios. Given the sharp decline in equity markets, the diversification of MD portfolios helped to preserve capital
While risks have risen globally, we still expect equities to outperform bonds in 2019. Positive earnings growth and continued strength in the global economy should remain supportive for equity markets
Winter 2018/2019: Designing portfolios with downside protection
Edward Golding and Mark Fairbairn, Assistant Vice Presidents with the Investment Management and Strategy team discuss downside protection, how it is achieved and MD’s approach to creating investor val
Winter 2018/2019: Why Is Everyone Always Talking About The Yield Curve?
Please join Marija Majdoub, Vice President with the Investment Management and Strategy team here at MD as she chats with Ian Taylor, Assistant Vice President about the yield curve—what it is, why it’s
Fall 2018 Market Outlook: Expect Continued Growth, but Volatility Is Back
Key take-aways:• We expect to see continued growth in the global economy.• Geopolitical risks are topped by a China–U.S. trade clash.• Interest rates are gradually resetting to historical...
Summer 2018: MDPIM Emerging Markets Equity Pool update
Recent performance has been challenging for emerging market equites and the MDPIM Emerging Markets Equity Pool. It’s important to remember volatility is not uncommon for this asset class. Over the...
MD Stable Income Fund aims to provide diverse, stable income to unit holders. Holdings include mortgages that can provide elevated income, fixed income diversification and reduced volatility.
Policy makers maintain their influence and we continue to watch geopolitical events unfold. International trade has captured headlines at this time, but global growth has not been derailed.
While we favour equites over fixed income overall, we see opportunities in the U.S., Germany, France and Japan. We are currently underweight Canada, the U.K., Switzerland and Australia. As...
Overall fund performance has been strong year-to-date and over the past 12 months but there have been some challenges: rising interest rates have challenged fixed income returns and growth style...
