Institutional Funds

TD Emerald Long Bond Overlay Pooled Fund Trust

Investment Strategy

The Fund seeks to gain exposure to Long-term government bonds approximately equal to 3 times the cash value of the Fund in order to provide a hedge against liabilities of an investor that are sensitive to changes in long-term interest rates. The composition of the Fund will generally be $1 of direct investment in physical bonds and $2 of synthetic bond exposure. The characteristics of the Fund are managed holistically, irrespective of physical or synthetic exposures, to help ensure that the overall Fund’s sensitivity to interest rate and provincial spread changes mirror that of the underlying benchmark. TD Asset Management Inc. considers general liquidity, administration, and cost when deciding whether any particular position will be held physically or synthetically, and what instruments to use within the synthetic portion.

Investment Objective

The investment objective of the Fund is to provide exposure to long-term provincial bonds approximately equal to 3 times the cash value of the Fund in order to provide a hedge against liabilities of an investor that are sensitive to changes in long-term interest rates.

Who Should Invest

The Fund is designed for Canadian pension funds seeking to better match the interest rate exposure associated with their pension liabilities by increasing their fixed income exposure.

Fund Facts

Asset Class	Long Fixed Income
Management Philosophy	Active
Inception Date	January 26, 2010
Benchmark	3x FTSE Canada Long Term Provincial Bond Index minus 2x one-month CDOR

Details

NAV($) / Yield (%)	9.3955 (As of January 26, 2021)
Distribution Date	December 31, 2020
Income Distribution	2.0175
Capital Distribution	0.0000
Total Distribution	2.0175
AUM (in millions)	1,097.22 (As of December 31, 2020)
Distribution Frequency	Annual

*Rates of return are time-weighted, reflecting income during the period but do not include any deduction for management fees.

Performance

	1 M	3 M	YTD	1 Y	2 Y	3 Y	4 Y	5 Y	10 Y	Since Inception
Fund	0.96	1.93	32.82	32.82	35.10	19.61	19.95	16.51	17.42	18.52
Benchmark	0.97	1.91	33.21	33.21	35.13	19.59	19.82	16.35	17.25	18.42

*Performance as of December 31, 2020. Year To Date - performance based on most recent month-end data.

*Benchmark is 3x FTSE Canada Long Term Provincial Bond Index minus 2x one-month CDOR

Note: Fund performance is before fees but after expenses

Yearly Performance

	2019	2018	2017	2016	2015
Fund	37.42	-6.24	20.98	3.72	7.98
Benchmark	37.06	-6.33	20.50	3.45	7.80