Asset Liability Management

TD Structured Short Liability Driven Provincial Bond

At a glance

We have successfully collaborated with consultants and their clients to implement various Asset Liability Management philosophies and solutions for over 20 years. We help clients make the fundamental shift from tracking the market to active management relative to their liabilities.

Hedge your liability risk

Experience. A cross-disciplined team of investment professionals well versed in both asset and liability subject matter expertise.
Broad opportunity set. Full breadth of solutions spanning fixed income, equities, alternatives, and derivatives.
Innovative analytics. We analyze risk and deliver innovative solutions using our robust suite of liability-driven investing tools.

Analysis and design. We will analyze your assets and liabilities to design a strategy that is realistic and fully tailored to your governance framework.
Execution and management. We will execute your strategy and actively manage your program, dynamically adjusting for changes in the market and your plan.

Philosophy and approach

Our Asset Liability Management (ALM) strategies are led by a skilled portfolio management team with extensive capital markets and actuarial experience. The team draws upon our deep and broad resources, including one of Canada's largest fixed income teams, innovative equity and derivatives solutions that can help manage risk, and real asset solutions that can provide attractive returns and enhance diversification.

Investment Process:

We take a collaborative and objective-based approach to ALM that evolves along with our clients’ needs at each step of the process:

Client Objectives: Our process begins and ends with the client. Understanding our clients’ unique needs, goals, risk appetite and constraints is central to developing and implementing a tailored ALM solution. We take a practical approach by working with the clients and their consultants to help clearly define the ultimate objectives for the strategy. While the overarching objective of adopting an ALM program is to manage the variability of the plan’s funded status, pension plans may decide to use ALM to focus on achieving other strategic objectives.

Analyze and Design: The collaborative approach with our clients allows our ALM team to gain a deep understanding of the mandate and opportunity set. We use our advanced analytics toolbox and actuarial insights to analyze the plan’s assets and liabilities, and to assist in quantifying and prioritizing risks. This in turn helps us identify and design strategies that address these risks and that are both grounded in the realities of the market, and fully tailored to our client’s asset/liability structure and governance framework.
Execute and Manage: A critical part of our ALM framework is execution. During the implementation phase, we utilize our full range of resources to ensure a cost-effective, risk-controlled transition from any existing strategy to the new recommended strategy. Given the complexities associated with implementing and managing a de-risking program, we can also act as a completion manager to provide oversight in a multi-manager ALM approach, or to help pension plans implement overlay strategies to add a layer of customization, either to fine-tune the liability hedge or to improve efficiency of glide path transitions. We help streamline implementation and actively manage our clients' mandates to continually adjust to market conditions and plan changes.

Track and Communicate: We regularly track progress against plan objectives using our proprietary ALM tools and provide clear communication and transparent reporting on metrics and performance. This ensures proper governance and oversight by the plan sponsor and helps to deliver confidence in achieving funding goals through better control of the plan.