TD Asset Management - Products & Services - Institutional Investors

Indexing Management

TD Quantitative Capital, a division of TD Asset Management Inc., is recognized as Canada’s leader in indexing, delivering consistent, reliable and cost-effective performance. Our expanding array of investment products is tailored to the unique needs, goals and circumstances of our clients. We manage Emerald Pooled Funds which are specially designed for institutional investors, including group pension plans and their members.

Our Philosophy is Indexing

Our Emerald Pooled Funds use an increasingly popular investment strategy known as indexing. Indexing does not try to "beat the markets" - that has proven to be an elusive goal. Rather, index fund investors achieve the returns available in a given market.

Indexing reduces portfolio risk by investing in a very broad range of securities. Indexing also lowers costs, compared with more active approaches. As well, indexing frees investors to focus on asset allocation. Research has shown that getting the right mix of stocks, bonds and international investments explains, on average, close to 90% of portfolio returns.

Benefits

	Economies of Scale: As all indexed portfolios are very similar, there are no advantages to separating client’s indexed portfolios from one another. By pooling assets, all investors gain from the economies of scale of associating with larger portfolios.
	Lower Costs: Because of available economies of scale in management, administration, and accounting time, the costs associated with the Emerald Pooled Funds, including transaction costs and investment management fees, are lower than those for segregated funds
	Assets are Fully Invested: The assets in a pooled fund are fully invested at all times. To meet liquidity needs, cash can easily be made available through the redemption of pooled fund units. Clients may be moving into the Funds as others are moving out, allowing us to cross units between clients at no cost.
	Liquidity: Pooled funds offer easier implementation of asset allocation strategies across several classes. If a client is rebalancing on a quarterly or annual basis, close tracking of the index can be more easily achieved by investing in pooled funds.