Canadian Long Fixed Income

TD Asset Management 20+ Year Duration

At a glance

We believe that a highly disciplined portfolio construction methodology is the most predictable way to generate competitive risk-adjusted returns when measured against any given benchmark. Our multi-pronged fixed income solutions can reduce total portfolio downside volatility without forfeiting performance.

Repeatable, Disciplined Investment Process

Extensive independent credit research.
Sound yield and credit curve analysis.
Strategic portfolio construction.

Structurally unbiased approach to credit risk.
Tactical flexibility to benefit through all market conditions.
Interest rate anticipation.
Sector strategy and security selection.

Philosophy and approach

We apply a fixed income process that utilizes fundamental economic cycle analysis to set our duration, yield curve and credit positioning, without any structural biases.

Investment process: We understand how fixed income risks can interact with equities and alternative investments and seek to deliver a bond strategy that provides stability to your portfolio in periods of stress. We believe fixed income portfolios should add value while also balancing the equity and liquidity risk of the total investment program. To accomplish this, we have developed a multi-strategy fixed income approach that will harvest value from interest rates and credit when they are attractive

We actively manage our fixed income portfolios, using a combination of fundamental and technical analysis. Our multi-strategy approach aims to add value by targeting duration management, sector allocation and security selection. Fundamental analysis seeks to identify the current stage of the interest rate and credit cycle by examining economic and monetary conditions. This outlook sets the bias for interest rate, yield curve and credit positioning. Technical analysis examines the supply and demand factors that are barometers of investor sentiment, allowing us to appropriately scale risk around our fundamental bias.

ESG

Environment, Social, and Governance (ESG) integration aligns with our philosophy of seeking investments in sustainable, long-term assets through a risk-managed process. We strive for a fully integrated ESG engagement process in our investment products.

Our Fundamental Equity Investment team integrates ESG factors directly into their investment analysis through a process involving the following central components:

Systemstic ESG Reviews: We look at a number of ESG indicators that we believe apply to all industry sectors and elevate any issues that could put a company’s expected earnings at risk. Each company research report incorporates an ESG assessment, ensuring concerns around risk exposures are reviewed, updated and evaluated by our sector analysts.

Thermatic ESG Research: We produce broad thematic ESG research on topics that have the potential to highly impact the companies in which invest. We have found this to be the best way to highlight the structural changes to various sectors and impacts to the companies themselves.

Active Ownership: Our in-depth research helps our commitment to active ownership. We strive to be active owners by engaging with the companies in which we invest and by taking advantage of our voting rights to help effect change. Our intent is to both improve corporate ESG disclosures as well as improve companies' ESG-related practices.

Learn more about TD Global Investment Solutions' focus on sustainable investing>