Limiting volatility and the search for additional return.

Working within guidelines determined with you, the client, TD Asset Management makes use of overlay strategies to improve the portfolio’s structure and performance versus your benchmark.

Asset mix overlays can be employed to actively and efficiently rebalance any plan’s asset allocation to diminish portfolio volatility and to enhance returns beyond those otherwise available.

Exchange rate fluctuations can have a significant impact on portfolio returns affecting institutional investors’ investment goals. For example, as pension plans introduce more foreign investments the propensity for a mismatch between the valuation currency of assets and the currency denomination of liabilities increases. Currency hedging overlays can reduce volatility caused by currency risk.