The world has changed, but the goals of our clients have not.
In today's markets, investors want growth and stable returns, new opportunities, access to forward-thinking expertise in fixed income, public equities, and increasingly – alternative investments.
Colin: "What alternative investments do, be they Private Credit or Real Assets, is broaden the opportunity set for diversification, reduce the volatility of your portfolio and can also provide compelling absolute returns with interesting growth characteristics to them over long economic cycles.
On the equity side, Real estate and Infrastructure are important for portfolios because you're introducing a private investment asset class that is less susceptible to the volatility of the daily activities of public markets.
It's about the aggregation of assets and companies that have long-term contracts backing them, such as paying rent via a lease, that provide income that's predictable, and these income streams can grow over time."
That includes identifying assets that have potential to be reimagined and repositioned in the market.
Colin: "A great example of this is Rabbalshede Kraft within our Infrastructure portfolio, a pan-European renewable energy platform of on-shore wind farms spread primarily across Scandinavia. This is a platform within which we've seen tremendous growth since acquisition in early 2017 – and within which the runway for growth remains tremendous.
We've grown the operating platform for Rabbalshede Kraft by nearly 70%. We bought 8 projects, operating representing 190 megawatts and have added 5 more to create in 13 total, representing 317 megawatts of production."
And real estate, whether it be office, industrial, retail, or residential, is a key part of TD Asset Management's alternative strategy.
North of the financial district, a prime example in TD Asset Management's real estate portfolio. Office towers on all four corners of the intersection at Yonge and St. Clair.
Andrew: "Our investment is about 1.2 million square feet of commercial space. Those investments give us significant scale to work with office tenants and ensure that we can keep the buildings full."
Across the county in Vancouver, British Columbia, Telus Garden. A 500,000 square foot office complex located in the downtown core. It's considered one of the most sustainable developments in North America.
Andrew: We see a very high quality office building that has reliable income streams over a long period of time. Very strong tenancies in one of the strongest office markets in North America.
So strong, Telus Garden boats a lease rate of 99%
In Edmonton, Alberta, we find Border Business Park, 500 acres of industrial land a prime location for logistics and distribution development.
Andrew: " We're successful in winning a bid to construct a brand new one million square foot Amazon distribution center. It really is an interesting way to incubate or introduce a new income stream for our real estate portfolio."
Hundreds of properties, millions of square feet of diverse holdings make up TD Asset Management's real estate portfolio.
A portfolio that reaches from St John's Newfoundland, to Victoria, British Columbia.
A portfolio that focuses on market trends like urbanization, transit, e-commerce, logistics and changing demographics.
One that also reflects the environmental and social investment values of TD Asset Management.
Portfolio assets that have dependable, long-term leaseholders and a strategy that creates a deep ecosystem of established core assets while building for future growth through value add and opportunity holdings.
Colin: "These assets are irreplaceable. They are very rarely bought or sold, and they provide compelling income growth solutions for our clients moving forward. At TD Asset Management, we've been investing in alternative investments for decades. The people associated with this process are passionate about what we're doing and are all about serving our clients' needs."
Expect more.
More innovation, more growth, more access to unique opportunities.
Disclosure
For institutional investment professionals only. Not for further distribution.
The information contained herein 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. This material is not an offer to any person in any jurisdiction where unlawful or unauthorized. These materials have not been reviewed by and are not registered with any securities or other regulatory authority in jurisdictions where we operate. Any general discussion or opinions contained within these materials regarding securities or market conditions represent our view or the view of the source cited. Unless otherwise indicated, such view is as of the date noted and is subject to change. Information about the portfolio holdings, asset allocation or diversification is historical and is subject to change.
This document may contain forward-looking statements (“FLS”). FLS reflect current expectations and projections about future events and/or outcomes based on data currently available. Such expectations and projections may be incorrect in the future as events which were not anticipated or considered in their formulation may occur and lead to results that differ materially from those expressed or implied. FLS are not guarantees of future performance and reliance on FLS should be avoided.
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