Ottawa-based MD Financial Management Inc. is making changes to the investment advisors for two of its dividend mutual funds to enhance risk management and broaden their diversification strategies.
Montreal-based Montrusco Bolton Investments Inc., Beutel Goodman and Company Ltd. and CIBC Asset Management, both based in Toronto, will now manage MD Dividend Growth Fund and MDPIM Dividend Pool.
“While these two funds have performed well since inception, we are updating our strategy in an effort to reduce the variability of the returns,” says William Horton, chief investment officer at MD, in a statement. “We will accomplish this through increased diversification of individual security risk and, consequently, a slightly lower dividend yield target than in the past.”
The changes will also allow for more diversification of sectors and foreign securities.
Each investment advisor will have its role in the management of the two funds, with Montrusco Bolton looking to deliver a concentrated portfolio of stocks that produce a return consistent with MD’s performance objectives.
Beutel Goodman’s emphasis on capital preservation is consistent with MD’s goal to provide enhanced risk management for these funds during times of market volatility.
And CIBC Asset Management will be responsible for managing the foreign currency exposure within the two funds.
MD is owned by the Canadian Medical Association and provides wealth-management services to physicians. It has more than $40 billion in assets under administration.