CIO Bill Horton on BNN: Finding Opportunity in Fixed Income

December 21, 2015

Over the long term, MD Financial Management Inc. (MD) has structured its portfolios to be well positioned for growth in global economies. The underlying rationale is based on the premise of continued two-speed economic global growth – in both advanced and developing economies.

Appearing on the Business News Network, Chief Investment Officer William R. Horton, Jr. discussed recent changes to MD’s portfolios, which position client assets well for the divergence in global monetary policy. The details are outlined in MD’s Tactical Asset Allocation, announced earlier in December.

“In making changes to our tactical asset allocation, we are looking at the continued divergence in global monetary policies which has been heavily influencing markets. The Bank of Japan today announced that they are easing their monetary policy, in contrast to the change in direction announced by the Federal Reserve Board earlier this week, and we have positioned our portfolios well for these, and other, divergences,” said Mr. Horton.

Addressing the challenge in finding returns in a choppy global environment, Mr. Horton said that over the short term, MD’s fixed-income and equity portfolios are actively positioned to seek opportunity.

“What often gets forgotten is that there are opportunities in fixed income. We’ve recently introduced an opportunistic sleeve in our fixed-income portfolios – a thoroughly researched, strategic approach that allows us to identify superior investment opportunities.”

Home Preference / Currency Overlay

MD allocates appropriate asset levels to Canadian-based fixed-income and equity securities through portfolios specifically structured for its Canadian investors. “We continue to maintain a strong portfolio presence in the Canadian dollar, in Canadian stocks. We also have a Canadian fixed-income component that helps to stabilize portfolios for our investors, relative to their investment time horizon,” Mr. Horton explained. “Our clients tell us that they are looking for longer-term returns that will help them reach their financial goals. Balancing the fixed-income and equity components with our home preference is a big part of how we do that.”

Credit Analysis Expertise

MD believes the key to finding opportunities in a sometimes volatile fixed-income market is credit analysis expertise. MD Precision™, MD’s patent-pending, proprietary fund management process, introduced in December, combines MD’s decades of experience with the expertise of specialist asset managers from around the world.

“We continually re-evaluate our research-based methodology to ensure performance is consistent with the rationale we used when we hired our managers,” says Mr. Horton. “We enable our managers to go beyond conventional approaches, within their specific mandates, to find opportunity.”

About MD Financial Management

Owned by the Canadian Medical Association, MD’s only business imperative is to enhance physicians’ financial outcomes by focusing on their distinctive needs and operating in their best interests.

MD Financial Management has more than $40 billion in assets under administration and is dedicated to serving Canada’s physicians and their families. MD provides financial products and services, the MD Family of Funds and investment counselling services through the MD Group of Companies. For a detailed list of these companies, visit md.cma.ca.

Media Contacts

Maria Grant
Lead, External Communications
maria.grant@cma.ca
613 809-0657

Deborah Thompson
DT Communications
deborah@dt-communications.ca
416 918-9551

MD Precision Trademark of the Canadian Medical Association, used under license.

MD Financial Management includes MD Financial Management Inc., MD Management Limited, MD Private Trust Company, MD Life Insurance Company and MD Insurance Agency Limited.

Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed. Their values change frequently and past performance may not be repeated. To obtain a copy of the prospectus, please call your MD Advisor, or the MD Trade Centre at 1 800 267-2332. The MD Family of Funds is managed by MD Financial Management Inc., a CMA company.

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