Investment Strategy
The Fund seeks to provide income and preserve capital by investing primarily in private debt securities and debt-like instruments which, in the opinion of TD Asset Management Inc., are investment grade quality at the time of purchase. The Funds may also invest in publicly traded fixed income securities in order to provide liquidity and ensure an appropriate level of diversification. The Fund uses a disciplined approach that seeks the maximum yield for a given level of risk by capturing the illiquidity premium associated with private debt securities and by utilizing tactical sources of added value, including foreign private debt securities which will normally be hedged back to Canadian dollars. The duration of the Fund will be maintained within 30% of the benchmark duration.
Investment Objective
The Fund's performance objective is to outperform the FTSE TMX Canada Universe Bond Index by 1.0% to 1.5% per annum, over a 4 year rolling period.
Who Should Invest
The Fund is designed for institutional investors seeking the incremental income associated with illiquid private debt securities and preservation of capital over the long term.
Fund Facts
Private Credit |
Active Fundamental |
July 13, 2016 |
FTSE Canada Universe Bond Index |