TD Asset Management Inc. (“TDAM”) announced the launch of two new solutions to its fund-of-fund suite: TD Global Equity Income Balanced Pool and TD Global Equity Income Pool (collectively, the “Pools”). The Pools are all-in-one solutions designed to generate capital growth and income by investing primarily in securities of other mutual funds, with a focus on mutual funds that invest in income-producing securities of issuers located anywhere in the world.
Building upon the popularity of the TD Fixed Income Pool and TD U.S. Equity Pool, these new solutions will invest primarily in mutual funds and ETFs managed by TDAM. The Pools’ investments may include but are not limited to, preferred shares, common shares, real estate investment trusts, and other similar income-producing instruments. The Pools will seek to deliver regular monthly distributions that may include a return of capital. The TD Global Equity Income Balanced Pool adds a global fixed income component to form a 75/25 equity to fixed income target mix.
“Today, Canadians are increasingly allocating assets in their portfolios to global equities,” said Robert Vanderhooft, Chief Investment Officer, TDAM. “At the same time, many investors also have a strong need for income as part of a diversified portfolio. In recent years, we’ve expanded our mutual fund lineup and ETF suite with high-quality solutions to help meet this investor demand. Our new TD Global Equity Income Pools provide actively managed global income equity solutions, overweight in exposure to dividend-paying equities, to help meet the needs of a wide range of investors. The underlying exposures and tactical allocations of the Pools will be actively managed by the experienced Asset Allocation, Fundamental Equity, and Fixed Income teams at TDAM,” added Vanderhooft.
Investors in the Pools will get access to:
- Two Layers of Active Management: Benefit from tactical adjustments made by the portfolio management team of the Pools, as well as the active investment approaches used by the portfolio managers of the underlying funds
- Unique Core-Satellite Approach: Combines long-term strategic asset allocation with tactical adjustments made by the portfolio management team to take advantage of short-term market opportunities
- Active Risk Management: The portfolio management team seeks to maintain a long-term focus while attempting to defensively position the portfolios when appropriate
With mutual funds in the global equity categories becoming an increasing percentage of Canadian assets under management, the new TD Global Equity Income Pools offer value for a wide range of investors seeking an actively managed global income equity solution with a strong focus on dividend-paying equities.
Source: TD Asset Management Inc.