Subject: ACC
MD Financial Management Announces Investment Adviser Changes and Reduction in Annual Fees for Physicians and Their Families
OTTAWA, June 13, 2019 /CNW/ - 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 Portfoliotm 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 Precisiontm Canadian Balanced | CIBC Asset Management Inc.; Hillsdale Investment Management |
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.; |
MD Equity Fund | CIBC Asset Management Inc.; Barrow, Hanley, Mewhinney |
MD Fossil Fuel Free Bond Fundtm | 1832 Asset Management L.P. |
MD Fossil Fuel Free Equity Fundtm | CIBC Asset Management Inc.; Comgest Asset Management |
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 |
MD Money Fund | 1832 Asset Management L.P. |
MD Precisiontm Canadian Moderate Growth Fund | CIBC Asset Management Inc.; Montrusco Bolton Investments |
MD Select Fund (to be renamed MD | Hillsdale Investment Management Inc.; Jarislowsky Fraser Ltd.; |
MD Short-Term Bond Fund | 1832 Asset Management L.P.; Manulife Investment Management Limited1 |
MDPIM Canadian Bond Pool (to be | 1832 Asset Management L.P.; Manulife Investment Management Limited1 |
MDPIM Canadian Equity Pool | Hillsdale Investment Management Inc.; Jarislowsky Fraser Ltd.; |
MDPIM Canadian Long Term Bond Pool (to be | 1832 Asset Management L.P.; Manulife Investment Management Limited1 |
MDPIM Dividend Pool | CIBC Asset Management Inc.; 1832 Asset Management L.P.; |
MDPIM International Equity Pool | CIBC Asset Management Inc.; Earnest Partners LLC; Jarislowsky |
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 | Reduced | Change (in bps) |
MD Precision Conservative Portfoliotm (Series A, Series D, | 1.15%, 0.57%, | 1.13%, 0.52%, | 2 to 5 |
MD Precision Balanced Income Portfoliotm (Series A, Series D, | 1.20%, 0.64%, | 1.18%, 0.59%, | 2 to 5 |
MD Precision Moderate Balanced Portfoliotm (Series A, Series D, | 1.30%, 0.73%, | 1.25%, 0.68%, | 5 |
MD Precision Moderate Growth Portfoliotm (Series A, Series D, | 1.35%, 0.77%, | 1.30%, 0.72%, | 5 |
MD Precision Balanced Growth Portfoliotm (Series A, Series D, | 1.40%, 0.88%, | 1.32%, 0.80%, | 8 |
MD Precision Maximum Growth Portfoliotm (Series A, Series D, | 1.45%, 0.91%, | 1.35%, 0.81%, | 10 |
MD American Growth Fund (Series A, Series D, Series F) | 1.25%, 0.73%, | 1.24%, 0.72%, | 1 |
MD American Value Fund (Series A, Series D, Series F) | 1.45%, 0.73%, | 1.44%, 0.72%, | 1 |
MD Bond Fund (Series A, Series D, Series F) | 0.85%, 0.51%, | 0.84%, 0.50%, | 1 |
MD Precisiontm Canadian Balanced Growth Fund (Series A, Series D, | 1.25%, 0.90%, | 1.24%, 0.89%, | 1 |
MD Precisiontm Canadian Moderate Growth Fund (Series A, Series D, | 1.25%, 0.90%, | 1.24%, 0.89%, | 1 |
MD Dividend Growth Fund (Series A, Series D, Series F) | 1.25%, 0.86%, | 1.24%, 0.85%, | 1 |
MD Equity Fund (Series A, Series D, Series F) | 1.25%, 0.71%, | 1.24%, 0.70%, | 1 |
MD Growth Investments Limited (Series A, Series D, Series F) | 1.25%, 0.85%, | 1.24%, 0.84%, | 1 |
MD International Growth Fund (Series A, Series D, Series F) | 1.60%, 0.88%, | 1.59%, 0.87%, | 1 |
MD International Value Fund (Series A, Series D, Series F) | 1.60%, 0.88%, | 1.59%, 0.87%, | 1 |
MD Money Fund (Series A, Series D, Series F2) | 0.50%, 0.24%, | 0.49%, 0.23%, | 1 |
MD Select Fund (Series A, Series D, Series F) (to be renamed MD | 1.25%, 0.71%, 0.30% | 1.24%, 0.70%, | 1 |
MD Short-Term Bond Fund (Series A, Series D, Series F) | 0.85%, 0.46%, | 0.84%, 0.45%, | 1 |
MD Strategic Opportunities Fund (Series A, Series D, Series F) | 1.65%, 0.47%, | 1.64%, 0.46%, | 1 |
MD Strategic Yield Fund (Series A, Series D, Series F) | 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 Fundtm (Series A, Series D, Series F) | 0.85%, 0.51%, | 0.84%, 0.50%, | 1 |
MD Fossil Fuel Free Equity Fundtm (Series A, Series D, Series F) | 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.
* MD Advisor refers to an MD Management Limited Financial Consultant or Investment Advisor (in Quebec), or an MD Private Investment Counsel Portfolio Manager. |
MD Fossil Fuel Free Fundstm, MD Precisiontm and MD Precision Portfoliostm are trademarks of The Bank of Nova Scotia, used under licence. |
MD Management Limited was the first of the MD Group of Companies to be founded in 1969. Since then the MD Group of Companies has grown to include MD Insurance Agency Limited (1970), MD Private Trust (1998), and MD Life Insurance Company (2000). MD Financial Management Inc. wholly owns or has a majority interest in the MD Group of Companies. For a detailed list of the MD Group of Companies, visit md.ca.
|
Management fees and expenses may be associated with pooled fund investments and the use of an asset allocation service. Before investing, please read the prospectus of the pooled funds in which investments may be made under the asset allocation service. Pooled funds are not guaranteed. Their values change frequently and past performance may not be repeated. The MD Family of Funds is managed by MD Financial Management Inc. |
Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual fund securities are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer. There can be no assurances that the fund will be able to maintain its net asset value per security at a constant amount or that the full amount of your investment in the fund will be returned to you. 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. |
The information contained in this document is not intended to offer foreign or domestic taxation, legal, accounting or similar professional advice, nor is it intended to replace the advice of independent tax, accounting or legal professionals. Incorporation guidance is limited to asset allocation and integrating corporate entities into financial plans and wealth strategies. Any tax-related information is applicable to Canadian residents only and is in accordance with current Canadian tax law including judicial and administrative interpretation. The information and strategies presented here may not be suitable for U.S. persons (citizens, residents or green card holders) or non-residents of Canada, or for situations involving such individuals. Employees of the MD Group of Companies are not authorized to make any determination of a client's U.S. status or tax filing obligations, whether foreign or domestic. The MD ExO® service provides financial products and guidance to clients, delivered through the MD Group of Companies (MD Financial Management Inc., MD Management Limited, MD Private Trust Company, MD Life Insurance Company and MD Insurance Agency Limited). For a detailed list of these companies, visit md.ca. MD Financial Management provides financial products and services, the MD Family of Funds and investment counselling services through the MD Group of Companies. |
SOURCE MD Financial Management
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