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Alternative Investments

Major institutional investors such as pension plans have steadily increased their allocation to alternative assets as they have realized the benefits of diversifying away from fixed income and equity investments. Now, with the ability of individual investors to allocate to alternatives through pooled funds, they can receive the benefits of this institutional approach.

Alternatives are investments in assets other than bonds, stocks or cash.

Main Types of Alternatives

  • Public Market Alternatives

    • Foreign Exchange Strategies
    • Options Strategies
    • Hybrids
    • Commodities
  • Private Market Alternatives

    • Real Estate (Learn More)
    • Infrastructure
    • Mortgages

The power of adding alternatives to a portfolio

Conventional mutual funds are usually invested in public equities and bonds which can offer diversification across market sectors; however, they have a high degree of correlation to traditional financial markets. This means that, in times of heightened volatility, we often see a corresponding response to varying degrees depending on the asset allocation within the mutual fund.

Beyond providing exposure to broader asset classes, Liquid Alternatives are also able to engage in certain investment strategies – including short-selling, borrowing, and use of derivatives. These strategies may be utilized to seek to enhance returns, reduce losses from market declines, reduce overall portfolio volatility, or attain a market neutral position.

The combination of diversification, downside protection, inflation protection and steady income make alternatives a strong addition to traditional balanced portfolios.

Evolving the Traditional Balanced Portfolio – Part 4


Alternatives provide a strong addition as part of a traditional balanced portfolios

  • Diversification

  • Downside Protection

  • Inflation Protection

  • Steady Income

The TDAM Advantage

With over 30 years of experience in alternative investment solutions, TD Asset Management Inc. (TDAM) has built a strong reputation in the alternatives space and has a proven track record of innovation in this ever-changing investment environment. Our alternative investment strategies have been refined over decades, with a focus on robust portfolio management and diversification.

The Alternatives team works closely with the Fixed Income and Public Equities teams as part of our collaborative approach to our investments that capitalizes on the full breadth of expertise of our organization. The increased market volatility experienced in recent years continues to demonstrate the key role that alternative investments can play in a diversified portfolio.

 


Learn More

  • The TD Alternative Commodities Pool offers a more diversified exposure to commodities than single commodity funds such as gold or silver. This can be a great complement for balanced portfolios, featuring an innovative approach that seeks to achieve capital appreciation with low correlation to equity and fixed income markets, which can improve diversification when added to investment portfolios.

  • TD Alternative Risk Focused Pool is a multi-asset solution combining alternative and traditional investment strategies, and is designed to outperform its benchmark across market conditions.

TDAM 2025 GRESB Assessment Summary

Global Real Estate Sustainability Benchmark (GRESB) is an industry-driven organization committed to assessing the sustainability performance of real assets and portfolios around the globe and TD Asset Management Inc. has been a proud member of GRESB since 2016. In 2025, GRESB launched its first-ever assessment for lenders and TD Greystone Mortgage fund (The Fund) was invited to participate. The Fund ranked as the top performer among North American participants with a score of 73, outpacing both global and peer averages.1

GRESB Score 2025 2024 2025 GRESB Global Average
Real Estate Assessment
TD Greystone Canadian Real Estate Strategy – Standing Investment 86 84 79
TD Greystone Canadian Real Estate Strategy – Development 85 84 88
TD Greystone Global Real Estate Strategy 85 83 81
Infrastructure Assessment
TD Greystone Infrastructure Strategy 94 89 91
Lender Assessment
TD Greystone Mortgage Fund 73 N/A 62


Note: The TD Greystone Canadian Real Estate Strategy refers to TD Greystone Real Estate L.P. Fund and TD Greystone Real Estate Fund Inc. The TD Greystone Infrastructure Strategy refers to TD Greystone Infrastructure Fund (Global Master) Special Competitive Studies Project (SCSp) , the TD Greystone Infrastructure Fund (Canada) L.P., the TD Greystone Infrastructure Fund (Canada) L.P. II, the TD Greystone Infrastructure Fund (Cayman Feeder) L.P, and TD Greystone Infrastructure Fund (Luxembourg Feeder) SCSp. The TD Greystone Global Real Estate Strategy refers to the TD Greystone Global Real Estate Fund L.P. and the TD Greystone Global Real Estate Fund (Canada Feeder) L.P.

Find more information regarding GRESB and the methodology behind these scores on the GRESB website.

 

1Source: GRESB, as at October 1, 2025.

The information contained herein has been provided by TD Asset Management Inc. and is for information purposes only. The information has been drawn from sources believed to be reliable. Graphs and charts are used for illustrative purposes only and do not reflect future values or future performance of any investment. The information does not provide financial, legal, tax or investment advice. Particular investment, tax, or trading strategies should be evaluated relative to each individual's objectives and risk tolerance. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the fund facts and prospectus, which contain detailed investment information, before investing. The indicated rates of return are the historical annual compounded total returns for the period indicated including changes in unit value and reinvestment of all distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any unitholder that would have reduced returns. Mutual funds are not guaranteed or insured, their values change frequently and past performance may not be repeated. Mutual fund strategies and current holdings are subject to change. Index returns are shown for comparative purposes only. Indexes are unmanaged and their returns include reinvestment of dividends, if applicable, but do not include any sales charges or fees as such costs would lower performance. It is not possible to invest directly in an index. Investment strategies and current holdings are subject to change.

TD Greystone funds are managed by TD Asset Management Inc., a wholly-owned subsidiary of The Toronto-Dominion Bank.

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