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Canadian Balanced

TD Structured Canadian Balanced Index

At a glance

We bring together one of the broadest investment platforms to meet client-specific investment objectives. Our turnkey balanced funds allow clients to access style-specific active, passive, or best ideas multi-asset mixes in a single solution.

Delivering index-like returns

  1. Consensus asset mix reflects the average asset mix of a survey of institutional balanced fund managers.

  2. Quarterly rebalancing. The asset mix is adjusted quarterly to reflect the average asset mix of pooled pension funds in Canada.

  3. Cost effective. The strategy’s passive investment approach results in cost-effective exposure to global investment opportunities.

  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. 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 were among the first to introduce asset allocation portfolios in Canada, pioneering the integration of alternative investments alongside equities and fixed income. Our approach combines three decades of asset allocation experience with new thinking and innovation that can help improve investment outcomes.

    Our investment process consists of:

  • Regular Strategic Rebalancing

    Every quarter, we receive updated asset mix data from a pooled fund survey of Canadian institutional balanced funds and rebalance the strategy accordingly.

    Underlying Equity Index Funds:

    Each underlying equity fund seeks to replicate its benchmark index by investing in all constituent stocks of the index at, or close to, benchmark weight. Technology and proprietary software are used to maintain tight thresholds which help ensure the portfolio mirrors the make-up of the index as closely as is practical.

  • Underlying Bond Index Fund:

    Our passive fixed income approach employs stratified sampling to build portfolios that match the key characteristics of their benchmarks to deliver index like returns. Stratified sampling is used because the over-the-counter nature of the Canadian fixed income market limits the availability and liquidity of certain bonds. Stratified sampling techniques are effective in building indexed fixed income portfolios because bonds that are not necessarily liquid or available at a reasonable cost can be substituted with other bonds that have similar characteristics such as term, industry and credit rating. 

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:

Systematic 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 ESG risk exposures are reviewed, updated, and evaluated by our sector analysts.

Thematic ESG Research: We produce broad thematic ESG research on topics that have the potential to highly impact the companies in which TDAM invests. 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 inform 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.

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