MD Financial Management Inc. (MD) is renaming two of its bond pools and changing their investment objectives, the firm said Tuesday in a release.
The MDPIM Canadian Bond Pool will be renamed the MDPIM Short-Term Bond Pool. It will invest in Government of Canada, provincial, municipal, corporate and asset-backed bonds with short terms of maturity, rather than medium terms, in an effort to reduce portfolio volatility during unexpected market conditions, the firm said.
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The MDPIM Canadian Long Term Bond Pool will be renamed the MDPIM Bond Pool, and invest in Government of Canada, provincial, municipal, corporate and asset-backed bonds with a full range of maturities, rather than mostly long-term maturities. The change is intended to improve capital preservation, diversify risk and mitigate the potential for loss when interest rates are increasing.
MD added that it would rebalance MD Private Investment Counsel clients’ portfolios to ensure they continue to align with clients’ investment objectives.
The changes, which were approved during a meeting of unitholders on Tuesday, will be implemented on or about May 31.
Scotiabank-owned MD provides financial services to physicians and their families, and has more than $50 billion in assets under administration.