Sweet 16: Celebrating TDAM's 16th consecutive year as a Refinitiv Lipper Fund Award Canada Winner
Investor Knowledge +
5 Minutes =
Confident Investing
Recently it was announced that a selection of TD Asset Management Inc. (TDAM) funds were recognized at the Refinitiv Lipper Awards Canada 2022. This is the 16th year in a row that TDAM has been honoured at these annual awards.
One of our winning funds was the TD U.S. Monthly Income (US$) Fund - Series F, which was awarded the 2022 Refinitiv Lipper Fund Award in the Global Neutral Balanced Classification for the 10 year period ending in July 31, 2022 out of 106 funds1. For the full list of recognized funds, click here.
To celebrate TDAM's ongoing success, we sat down with Damian Fernandes, CFA, Managing Director, TDAM and Portfolio Manager for the TD U.S. Monthly Income (US$) Fund to discuss his team's investment philosophy and get his thoughts on what investors can expect in 2023.
Q: As a Portfolio Manager, how does it feel knowing that TDAM has had funds recognized at the Refinitiv Lipper Fund Canada Awards for a 16th consecutive year?
I think it speaks to our consistent and disciplined investment process. Despite market volatility, our emphasis on high quality companies with predictable cash flows, evidenced by rising dividend streams, continues to occupy a place in the market where investors are seeing our performance. It's a testament to our firm, and it's great to know that someone is watching, and someone is noticing.
Q: Considering the elevated levels of volatility markets have endured in 2022, what has your experience being a Portfolio Manager this year been like compared to previous years? Does it feel like the situation has changed?
No, actually – it doesn't. Market volatility this year has been the result of factors that are beyond our control: an aggressive U.S. Federal Reserve, supply chains issues, geopolitical risks, etc. If you had asked me last year if these things were going to happen, I wouldn’t have known. But what hasn't changed, and why I don't think it's that much different, is that the value of a business – how much cash it's going to generate – is what we pay attention to. TDAM has a secret sauce that helps us identify high value businesses in a marketplace that is, in my view, doing a poor job of discriminating between companies that are generating significant amounts of cash flow today and in the future from all the rest. So, I actually don't mind volatile periods because the decisions we make today in identifying companies that might be mispriced by the marketplace are what we believe can create value in the next 2-3 years. And I am comfortable with that.
Q: Of all the investment strategies and processes that TDAM has at its disposal, which one do you think will be the most crucial moving into 2023?
It's like trying to choose your favourite child! What's not going to change is our clients' desire for solutions that do not have significant volatility and, more importantly, provide income that is growing over time. So, many of our solutions are predicated on finding companies that generate cash flows - and the manifestation of that cash flow growth is income delivery. So, if you have a balanced profile, you may consider our TD U.S. Monthly Income (US$) Fund – which won a Refinitiv Lipper Award – as it's comprised of U.S. companies and high-quality U.S. corporate bonds that seek to generate increasing levels of income. And TDAM also offers a high equity version: The TD U.S. Dividend Growth Fund.
Q: What advice do you have for investors as we approach the new year?
This year has been truly unique in that there is no place to hide. Fixed income is down. Equities are down. Global markets are down. Volatility is up. It’s hard to have generated decent returns this year given the backdrop. People have this tendency to extrapolate negative backdrops into the future, but I think the backdrop next year will have fewer surprises. I'm not going to be surprised by inflation ratcheting higher, or central banks raising rates, or growth beginning to slow. I think the market backdrop for investors, in term of surprises and unforeseen consequences, will be better this year than last year. So, my advice is to have a plan and stick to it. At this point, markets have had quite a degree of corrections that could provide opportunities for long-term compounding.
1TD U.S. Monthly Income (US$) Fund - Series F was awarded the 2022 Refinitiv Lipper Fund Award in the Global Neutral Balanced Classification for the 10-year period ending in July 31, 2022 out of 106 funds. Performance for TD U.S. Monthly Income (US$) Fund - Series F for the period that ended October 31, 2022 is as follows: -11.94% (1 year), 4.80% (3 years), 5.94% (5 years), 6.92% (10 years) and 7.52% (since inception on August 16, 2011). The corresponding Lipper Leader ratings of the fund for the period that ended July 31, 2022 are as follows: N/A (1 year), 5 (3 years), 5 (5 years), 5 (10 years).
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. 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, management fees and expenses all may be associated with mutual fund and/or exchange- traded fund ("ETF") investments (collectively, "the Funds"). Trailing commissions may be associated with mutual fund investments. ETF units are bought and sold at market price on a stock exchange and brokerage commissions will reduce returns. Please read the fund facts or summary documents and the prospectus, which contain detailed investment information, before investing in the Funds. The indicated rates of return are the historical total returns for the period, compounded for mutual funds, including changes in unit value and reinvestment of distributions. Index returns do not represent ETF returns. The indicated rates of return do not take into account sales, redemption, commission charges, distribution or optional charges, as applicable, or income taxes payable by any securityholder that would have reduced returns. The Funds are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer and are not guaranteed or insured. Their values change frequently. There can be no assurances that a money market fund will be able to maintain its net asset value per unit at a constant amount or that the full amount of your investment will be returned to you. Past performance may not be repeated.
The Refinitiv Lipper Fund Awards, granted annually, highlight funds and fund companies that have excelled in delivering consistently strong risk-adjusted performance relative to their peers. The Refinitiv Lipper Fund Awards are based on the Lipper Leader for Consistent Return rating, which is a risk-adjusted performance measure calculated over 36, 60 and 120 months. The highest 20% of funds in each category are named Lipper Leaders for Consistent Return and receive a score of 5, the next 20% receive a score of 4, the middle 20% are scored 3, the next 20% are scored 2 and the lowest 20% are scored 1. The fund with the highest Lipper Leader for Consistent Return (Effective Return) value in each eligible classification wins the Refinitiv Lipper Fund Award. Lipper Leader ratings change monthly. For more information, see lipperfundawards.com. Although Refinitiv Lipper makes reasonable efforts to ensure the accuracy and reliability of the data contained herein, the accuracy is not guaranteed by Refinitiv Lipper.
Certain statements in this document may contain forward-looking statements (“FLS”) that are predictive in nature and may include words such as “expects”, “anticipates”, “intends”, “believes”, “estimates” and similar forward-looking expressions or negative versions thereof. FLS are based on current expectations and projections about future general economic, political and relevant market factors, such as interest and foreign exchange rates, equity and capital markets, the general business environment, assuming no changes to tax or other laws or government regulation or catastrophic events. Expectations and projections about future events are inherently subject to risks and uncertainties, which may be unforeseeable. Such expectations and projections may be incorrect in the future. FLS are not guarantees of future performance. Actual events could differ materially from those expressed or implied in any FLS. A number of important factors including those factors set out above can contribute to these digressions. You should avoid placing any reliance on FLS.
TD Mutual Funds and TD ETFs are managed by TD Asset Management Inc., a wholly-owned subsidiary of The Toronto-Dominion Bank. TD Mutual Funds are available through authorized dealers.
® The TD logo and other TD trademarks are the property of The Toronto-Dominion Bank or its subsidiaries.
