Asset Allocation

Target Date Plus

At a Glance

This family of Target Date Plus strategies are the result of testing a wide spectrum of different asset mixes and glide paths. The strategies follow a "fund of funds" approach that includes equities, fixed income and private alternatives. The strategy will initially have an emphasis on capital growth (through equity exposure) but will increasingly seek more income and stability (through fixed income exposure) as it moves towards the target date.

Seeking Superior long-term Investment Returns

  1. Risk managed rather than simply managing equity exposure, taking account of all the risks facing plan members.

  2. Direct alternative investments incorporated through pooled fund investments.

  3. Multiple styles of equity and fixed income investing used, managed over time through both an equity and fixed income sub-glide path.

  1. Broad investment platform. We bring together broadly diversified asset class, sector, regional and investment style capabilities.

  2. Full-service offering. Our capabilities integrate alternatives into multi-asset portfolios for optimal factor diversification.

  3. Highly experienced investment team. We have access to research, tools, and insights from one of the deepest asset allocation and derivatives teams in Canada.

Philosophy and Approach

  • We believe in improving retirement outcomes for Canadian Capital Accumulation Plan (CAP) members. We also believe that alternative investments have the potential to improve the probability of better savings and retirement outcomes.

    Our philosophy is to align the investment strategy with members’ savings and decumulation needs with the aim to help plan members improve retirement outcomes. The performance of the TD Target Date Plus strategies is a result of our philosophy being put into action through our disciplined, repeatable investment process.

    Investment Process

    Canadian demographic assumptions:

    All demographic and socio-economic assumptions are derived from government or reputable industry sources..

    Asset class assumptions:

    Consistent with our firm wide approach for multi-asset solutions, we set long-term asset class assumptions using an objective building block approach for expected returns, and historical standard deviations and correlations.

  • Integrated execution: 

    Through our proprietary Glide Path Analytics, we integrate demographic and asset class assumptions to develop the glide path. Trading, risk management, portfolio management, liquidity management and operations are integrated across fixed income, equities and alternatives for optimal execution.

    Annual Glide Path Update:

    Our investment team uses what we call adaptive allocation to set the asset mix for the strategies. Adaptive allocation is a middle ground between tactical asset allocation (where the portfolio is actively tilted to try to take advantage of short-term opportunities in the market) and strategic asset allocation (where the portfolio’s asset mix is set using long-term asset class assumptions and not adjusted based on market environment). To implement adaptive allocation, we formally examine our glide path through the Annual Glide Path Update process at the end of each calendar year. Through this process, we re-run our proprietary Glide Path Model and incorporate any evolutions in available asset classes or funds, long-term asset class assumptions or demographics. This process helps to ensure that the strategies continue to meet plan member objectives in the current market environment.

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At a Glance

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