MD Financial Management today announced a proposed realignment of portfolio management responsibilities with respect to a number of MD Funds and MDPIM Pools. These changes were approved on June 13, 2019, by the MD Financial Management Inc. Board of Directors.
Coupled with these changes, MD is leveraging its relationship with Scotiabank to reduce annual investment fees for physicians and their families by approximately $6 million. The reduced fees, along with the increase in global asset exposure and potential for improved portfolio outcomes, should benefit all clients that are invested in the impacted funds and portfolios.
“We are updating our portfolio construction methodology known as MD Precision Portfolio™ Strategy,” said Craig Maddock, MD’s Vice President of Investment Management and Senior Portfolio Manager. “We believe these updates will enable us to improve the risk-adjusted returns for our client portfolios going forward.”
“One of the most notable changes will be reducing our allocation to Canadian equities in favour of foreign equities. There will also be some important enhancements to our fixed-income pools. As we were making these portfolio-level changes, we took the opportunity to reassess our investment advisers with a view to further enhancing the potential of many of our funds and pools.”
The revised investment adviser structure is as follows:
|
Fund |
Approved Investment Advisers as of June 13, 2019 |
|---|---|
|
MD Precision™ Canadian Balanced Growth Fund |
CIBC Asset Management Inc.; Hillsdale Investment Management Inc.; Jarislowsky Fraser Ltd.; Triasima Portfolio Management Inc.; Walter Scott & Partners; 1832 Asset Management L.P.; Manulife Investment Management Limited1 |
|
MD Bond Fund |
1832 Asset Management L.P.; Manulife Investment Management Limited1 |
|
MD Dividend Growth Fund |
CIBC Asset Management Inc.; 1832 Asset Management L.P.; Montrusco Bolton Investments Inc. |
|
MD Equity Fund |
CIBC Asset Management Inc.; Barrow, Hanley, Mewhinney & Strauss, LLC; Earnest Partners LLC; Fiduciary Management Inc.; LSV Asset Management; Hillsdale Investment Management Inc.; Jarislowsky Fraser Ltd.; Triasima Portfolio Management Inc. |
|
MD Fossil Fuel Free Bond Fund™ |
1832 Asset Management L.P. |
|
MD Fossil Fuel Free Equity Fund™ |
CIBC Asset Management Inc.; Comgest Asset Management International Limited; Jarislowsky Fraser Ltd. |
|
MD Growth Investments Limited |
CIBC Asset Management Inc.; Jarislowsky Fraser Ltd.; Walter Scott & Partners |
|
MD International Value Fund |
CIBC Asset Management Inc.; Earnest Partners LLC; Jarislowsky Fraser Ltd.; LSV Asset Management |
|
MD Money Fund |
1832 Asset Management L.P. |
|
MD Precision™ Canadian Moderate Growth Fund |
CIBC Asset Management Inc.; Montrusco Bolton Investments Inc.; 1832 Asset Management L.P.; Manulife Investment Management Limited1 |
|
MD Select Fund (to be renamed MD Canadian Equity Fund effective June 17, 2019) |
Hillsdale Investment Management Inc.; Jarislowsky Fraser Ltd.; Triasima Portfolio Management Inc. |
|
MD Short-Term Bond Fund |
1832 Asset Management L.P.; Manulife Investment Management Limited1 |
|
MDPIM Canadian Bond Pool (to be renamed MDPIM Short-Term Bond Pool effective June 17, 2019) |
1832 Asset Management L.P.; Manulife Investment Management Limited1 |
|
MDPIM Canadian Equity Pool |
Hillsdale Investment Management Inc.; Jarislowsky Fraser Ltd.; Triasima Portfolio Management Inc. |
|
MDPIM Canadian Long Term Bond Pool (to be renamed MDPIM Bond Pool effective June 17, 2019) |
1832 Asset Management L.P.; Manulife Investment Management Limited1 |
|
MDPIM Dividend Pool |
CIBC Asset Management Inc.; 1832 Asset Management L.P.; Montrusco Bolton Investments Inc. |
|
MDPIM International Equity Pool |
CIBC Asset Management Inc.; Earnest Partners LLC; Jarislowsky Fraser Ltd.; LSV Asset Management; Mawer Investment Management Ltd.; Walter Scott & Partners |
1 The Fund/Pool are sub-advised by Manulife Investment Management Limited (Canada), Manulife Investment Management (U.S.) LLC, Manulife Investment Management (Hong Kong) Limited and Manulife Investment Management (Europe) Limited.
These investment adviser changes do not affect the funds’ overall risk classification. The changes will be implemented in the coming weeks.
Effective June 13, 2019, the fee reductions will be as follows:
|
Name |
Current Management Fee |
Reduced Management Fee |
Change (in bps) |
|---|---|---|---|
|
MD Precision Conservative Portfolio™ |
1.15%, 0.57%, |
1.13%, 0.52%, |
2 to 5 |
|
MD Precision Balanced Income Portfolio™ |
1.20%, 0.64%, |
1.18%, 0.59%, |
2 to 5 |
|
MD Precision Moderate Balanced Portfolio™ |
1.30%, 0.73%, |
1.25%, 0.68%, |
5 |
|
MD Precision Moderate Growth Portfolio™ |
1.35%, 0.77%, |
1.30%, 0.72%, |
5 |
|
MD Precision Balanced Growth Portfolio™ |
1.40%, 0.88%, |
1.32%, 0.80%, |
8 |
|
MD Precision Maximum Growth Portfolio™ |
1.45%, 0.91%, |
1.35%, 0.81%, |
10 |
|
MD American Growth Fund |
1.25%, 0.73%, |
1.24%, 0.72%, |
1 |
|
MD American Value Fund |
1.45%, 0.73%, |
1.44%, 0.72%, |
1 |
|
MD Bond Fund |
0.85%, 0.51%, |
0.84%, 0.50%, |
1 |
|
MD Precision™ Canadian Balanced Growth Fund |
1.25%, 0.90%, |
1.24%, 0.89%, |
1 |
|
MD Precision™ Canadian Moderate Growth Fund |
1.25%, 0.90%, |
1.24%, 0.89%, |
1 |
|
MD Dividend Growth Fund |
1.25%, 0.86%, |
1.24%, 0.85%, |
1 |
|
MD Equity Fund |
1.25%, 0.71%, |
1.24%, 0.70%, |
1 |
|
MD Growth Investments Limited |
1.25%, 0.85%, |
1.24%, 0.84%, |
1 |
|
MD International Growth Fund |
1.60%, 0.88%, |
1.59%, 0.87%, |
1 |
|
MD International Value Fund |
1.60%, 0.88%, |
1.59%, 0.87%, |
1 |
|
MD Money Fund |
0.50%, 0.24%, |
0.49%, 0.23%, |
1 |
|
MD Select Fund |
1.25%, 0.71%, |
1.24%, 0.70%, |
1 |
|
MD Short-Term Bond Fund |
0.85%, 0.46%, |
0.84%, 0.45%, |
1 |
|
MD Strategic Opportunities Fund |
1.65%, 0.47%, |
1.64%, 0.46%, |
1 |
|
MD Strategic Yield Fund |
1.40%, 0.46%, |
1.39%, 0.45%, |
1 |
|
MDPIM Emerging Markets Equity Pool (Series D, Series F) |
1.09%, 0.72% |
1.08%, 0.71% |
1 |
|
MD Fossil Fuel Free Bond Fund™ |
0.85%, 0.51%, |
0.84%, 0.50%, |
1 |
|
MD Fossil Fuel Free Equity Fund™ |
1.25%, 0.88%, |
1.24%, 0.87%, |
1 |
|
MDPIM International Equity Index Pool (Series F) |
0.20% |
0.19% |
1 |
|
MDPIM S&P 500 Index Pool (Series F) |
0.08% |
0.07% |
1 |
|
MDPIM S&P/TSX Capped Composite Index Pool (Series F) |
0.05% |
0.04% |
1 |
“MD has passed on approximately $15 million in annual savings to our clients over the past 18 months, providing access to our investment solutions and the expertise of our leading portfolio management teams at a lower cost,” said Maddock.
“These are significant changes that will benefit the vast majority of our more than 100,000 clients. The changes announced today are aligned with our longstanding commitment to continuously improve our investment solutions for Canada’s physicians.”
If clients have any questions or would like more information, they are encouraged to contact their MD Advisor*.
About MD Financial Management Inc.
With 50 years of physician-focused experience, MD has one main goal: to help Canada’s physicians achieve financial well-being.
MD has more than $49 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.ca.
Media contact
Yali N'Diaye
External Communications Manager
yali.ndiaye@md.ca
613 813-7361
* MD Advisor refers to an MD Management Limited Financial Consultant or Investment Advisor (in Quebec), or an MD Private Investment Counsel Portfolio Manager.
