Effective use of leverage and alternative investments to create a more effective portfolio structure.

At TD Asset Management we anticipate that leverage and Liability Driven Investment (LDI) strategies will become more relevant as, for example, pension clients seek to reduce the impact of surplus volatility on financial statement reporting going forward.

Leverage in LDI solutions provides the ability to remove a significant proportion of the interest rate mismatch risk while maintaining exposures to other asset classes like equities and absolute return strategies. This is important over the long term because it may mean a reduction in the costs of meeting future pension obligations.

Our investment process involves selecting securities designed to maximize return, while maintaining liquidity, risk controls and the matching of liability duration and cash flows.