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TD Asset Management Inc. announces 1-year portable alpha returns

2 minute read
By TD Bank Group
• Oct 18, 2007
TORONTO, Oct. 18 /CNW/ - TD Asset Management Inc. ("TDAM") and Diversified Global Asset Management ("DGAM") are pleased to announce returns of the following turnkey portable alpha solutions, which were launched to Canadian institutional investors last year: Diversified Value Added - Long Bond Fund Pooled Fund Trust Diversified Value Added - Real Return Bond Fund Pooled Fund Trust Diversified Value Added - U.S. Equity Fund Pooled Fund Trust The Funds are built on the strategy that better risk-adjusted outcomes can be generated by separating the production of beta (market return) from that of alpha (return in excess of market). In addition, the Funds harness an alternative source of alpha, in this case DGAM's Fund of Hedge Funds, to enhance the offering by diversifying the underlying sources of return so as to eliminate correlations to the chosen beta. "As we pass the first anniversary of the Funds, it's great to see that they've delivered on all fronts," said Robin Lacey, Managing Director, TDAM. "The combination of beta and alpha has generated strong attractive risk-adjusted returns with low correlation between the sources of return. The Funds were tested by and withstood recent market turbulence, and the returns are outstanding." "DGAM has built an institutional-quality alpha engine that expressly targets low volatility, is beta-neutral, preserves duration and employs portfolio hedges to limit downside risk during extreme market events," said George Main, Chief Investment Officer, DGAM. Diversified Value Added ("DVA") Pooled Fund Trust Class B, Performance: 1 Year Ending July 31, 2007 ------------------------------------------------------------------------- Added Tracking Return Value Error ------------------------------------------------------------------------- DVA - Long Bond Fund Pooled Fund Trust 6.97% 4.38% 0.91% ----------------------------------------------------- Scotia Capital Long Bond Index 2.59% ------------------------------------------------------------------------- DVA - Real Return Bond Fund Pooled Fund 4.52% 0.92% Trust 2.57% ----------------------------------------------------- Scotia Capital Real Return Bond Index -1.95% ------------------------------------------------------------------------- DVA - U.S. Equity Fund Pooled Fund Trust 20.66% 4.53% 0.74% ----------------------------------------------------- S&P 500 Total Return Index (US$) 16.13% ------------------------------------------------------------------------- Note: Performance is net of all management and performance fees. The approach used derives net of fee returns and assumes the current investment management fee schedule of a 1.2% annual base fee (accrued monthly) plus a performance fee equal to 10% of the net returns in excess of the respective Index. The performance fee is calculated on a monthly basis with a high watermark. The above data are an estimate of the performance fees payable as the actual performance fee is paid annually. Past performance is not indicative of future performance. TD Asset Management Inc. is a wholly owned subsidiary of The Toronto-Dominion Bank. ------------------------------------------------------------------------- About TD Asset Management Inc. TD Asset Management Inc. ("TDAM") is one of Canada's largest investment management firms, with leading market positions in active, quantitative and passive portfolio management. TDAM is a fully integrated investment management business offering a wide-range of products and solutions to institutional and retail mutual funds including alternative investments and portfolio integration services such as transition management, rebalancing and overlay. As of Sept 30, 2007, TDAM and its affiliates had over $161B in assets under management. For further information: Lisa Hodgins, TD Bank Financial Group, (416) 983-2982, lisa.hodgins@td.com

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