MD Financial Management (MD) has announced proposed changes to the investment objectives of the MDPIM Canadian Bond Pool and the MDPIM Canadian Long Term Bond Pool.
The proposed change for the MDPIM Canadian Bond Pool is to invest in bonds with, on average, short terms of maturity, rather than short to mid-terms of maturity, said the company in a March 8 announcement. “This will help to reduce portfolio volatility during unexpected market conditions, while continuing to provide income.”
Improve capital preservation
The change proposed for the MDPIM Canadian Long Term Bond Pool is to invest in bonds with a full range of maturities, rather than, on average, longer terms of maturity. “This will help improve capital preservation, mitigate the risk of loss in a portfolio when interest rates are increasing, and diversify risk,” says MD.
Subject to unitholder approval, the changes would be implemented on or about May 31, 2019. A special meeting of unitholders will be held on April 23, 2019 for unitholders.
"We are confident these changes will add to the strength and breadth of the MDPIM Fixed Income Pools. They support our commitment to always looking out for our clients' best interests," said Mike Gassewitz, MD's Executive Vice President, Client Solutions.
Names to change
Once these changes are approved and implemented, MD says it will change the names as follows to reflect the new investment objectives: MDPIM Canadian Bond Pool will be renamed MDPIM Short-Term Bond Pool and the MDPIM Canadian Long Term Bond Pool will be renamed MDPIM Bond Pool.