Investment Strategy
The Fund seeks to mitigate interest rate risks for pension plans by investing primarily in a diversified portfolio of Canadian provincial issued and guaranteed bonds and debentures, and ensuring that the portfolio characteristics are consistent with those of the custom long-term liability benchmark. The Fund utilizes a key duration matching approach, which focuses on minimizing the key sources of risk in a cost-effective manner while ensuring rebalancing flexibility and taking into account the nature of the hedging instruments. The Liability Driven Funds are available in three different durations (Short, Mid, Long) and are designed to be combined with one another and/or with a portfolio of corporate bonds to create a unique, closely matched liability hedging portfolio.
Investment Objective
The Funds seek to mitigate interest rate risks for pension plans by investing in Canadian provincial bonds. Each Fund's performance objective is to provide performance similar to a benchmark derived from the liability cash flows of typical Canadian pension plans. The benchmark differs for each Fund, with associated demographics ranging from plans with a high proportion of retirees to those with a high proportion of active members.
Who Should Invest
The Fund is designed for institutional investors who wish to create a tailored liability hedging strategy in order to hedge the fundamental risk characteristics of their liabilities and those looking to focus on liability funding, the removal of unintended risk, and the improvement of capital efficiency. The TD Emerald Long Liability Driven Provincial Bond PFT's custom benchmark represents pension plan obligations associated with a plan consisting of a high proportion of active members.
Fund Facts
Long Fixed Income |
Active |
April 11, 2016 |
Long Liability Driven Custom Benchmark |