MD Physician Services’ Chief Investment Officer William R. Horton appeared on BNN’s Business Day to discuss MD’s latest “Tactical Asset Allocation”. MD adopts a long-term strategic asset allocation in creating its investment portfolios for physicians, but tilts them each quarter, Mr. Horton stated.
The tactical asset allocation within a portfolio will get adjusted based on in-depth economic research that signals shorter term (usually measured in months rather than multiple years), temporary opportunities to potentially add incremental value to portfolios. Based on the most current review, MD will be increasing its position in Canadian equities, though will remain “underweight” in the asset category. In fact, MD’s overall equity position will increase while its fixed income holdings will decrease. Within the fixed income portfolio, expect to see MD holding more cash as opposed to bonds.
As Mr. Horton says in the interview, MD constantly reinvests in its business “to fit into a risk budget – these are not individual decisions.” MD’s expert approach to portfolio management and lower Management Expense Ratios are just a few of the ways MD has distinguished itself as a wealth management firm over the past 40 years.