The goal in managing passive equity is to consistently track the performance of our respective strategy benchmarks through rigorous risk controls, strict implementation discipline and strong investment oversight. Our passive investment teams are composed of uniquely skilled and experienced investment professionals, which has been a key component of our success.

With over 30 years of experience managing equity investments, passive investment management has been a significant part of our business at TDAM. We offer a full spectrum of investment solutions and take pride in our long and successful track record, delivering desired market exposure to clients based on both widely used and custom benchmarks. 

We seek to replicate the performance of the MSCI World Low Carbon Target index by investing directly or indirectly in all constituent stocks of the index at, or close to, benchmark weight. Where investment constraints exist, the strategy may instead use an optimization approach.

Technology and proprietary software are used to maintain tight thresholds which help ensure the portfolio mirrors the characteristics of the index as closely as possible.

Effectively tracking benchmarks requires expertise in understanding the rules and guidelines of each index provider such as index inclusions, exclusions, rebalancing and other changes. We conduct research on upcoming and forecast changes, in addition to participating in ongoing dialogue and consultation with index providers given our scale in the market and representation on industry committees.

We have implemented effective risk management practices while investment, financial, regulatory and operational risk is all managed and monitored on a real-time basis. Our clients value that we have a dedicated Risk Management team that works independent of the TDAM Investment Management team.