When TD Greystone Asset Management first opened its doors in 1988, real estate was a component of our investment solutions to institutional clients. We truly believed — from day one — that a well-diversified portfolio should include alternative investments.
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Clients benefit from the stability of our team, the consistency of our philosophy and process, our use of multiple risk strategies to build a truly diversified portfolio, and the real estate team’s access to the insights of all of our investment teams. We hold our real estate strategy to the same robust standards of compliance and governance as our other investment strategies.
Our real estate strategy is available to pension funds through the Real Estate Fund Inc., and to other institutional investors through the Real Estate LP Fund.
- Protect. Grow. Build. Over the long term, the income generated by real estate contributes 80% of the total return from the asset class. Consequently, TD Greystone’s philosophy is to protect, grow and build the income stream of the real estate strategy. We follow an income/income growth approach involving active management and multi-dimensional risk management.
The real estate strategy is driven by our disciplined portfolio modelling process, which governs our diversification by region, property type and risk strategy. The strategy invests from coast to coast, and in office, retail, industrial and multi-unit residential properties. In addition to the strategy’s focus on core income producing properties, we invest in property improvement and development activities to incubate future income growth.
Jeff Tripp, CFA, MBA
Infrastructure can be thought of as a real return asset class with long investment horizons capable of matching the long-term liabilities or obligations of pension funds and other institutional investors. The Infrastructure Fund builds on this experience to provide client-friendly access to global infrastructure investing. The Fund is open-ended, aligning it with our clients’ interests and investment time horizons. Fees are highly competitive, and there is no carried interest. Insights from our Real Estate, Fixed Income and Equity teams inform the overall construction of the portfolio and the understanding of specific asset investments, leading to better decisions. Our (or "The") Infrastructure Fund is held to the same robust standards of governance and compliance as our other investment strategies.
- Long term, income producing and stable. We believe success in infrastructure investing is based on acquiring real assets that are long term, income producing and stable. We also believe that an open-ended fund structure best matches both our clients’ long-term needs and the long lifespan of infrastructure investments. We further believe that the most attractive opportunities lie in the mid-market range and are best sourced through established relationships. Finally, our infrastructure team believes risk is most appropriately managed through careful deal structuring as well as diversification globally and across different asset types.
Our infrastructure team uses its extensive global network to source high-quality infrastructure assets and partners. Extensive due diligence, including in-depth financial analysis and scenario testing, enables the team to assess whether a particular opportunity is worthy of investment. Thorough risk assessment and careful deal structuring help ensure our clients’ interests are protected. The team remains intimately involved with each asset in the portfolio, through a rigorous asset management process targeting shareholder rights and/or board representation, to protect, grow and build the resulting income stream.
Jeff Mouland, P.Eng., MBA
Infrastructure Fund (Canada) L.P. Fund
The Mortgage Fund provides flexible and customized solutions in a quick and timely manner. The same team originates and manages mortgages and provides high-quality service to borrowers through the entire term.
The Mortgage Fund is managed by our integrated real estate and mortgages team, TD Greystone adds value for its mortgage clients by deeply understanding the properties that secure the mortgages, which enables us to underwrite and structure the loans advantageously for our clients. In addition, we use multiple loan types to enhance yield and manage duration and return all placement fees to the fund as additional income for our clients.
- Protect. Enhance. Build. We focus on commercial mortgage investments that provide predictable and stable income and principal repayment. We believe this stability derives from the quality of the underlying real estate, the strength, both financial and managerial, of the borrower, and the strength and continuity of rent paid by tenants occupying the mortgaged property. We further believe thoughtful underwriting and multi-dimensional diversification are necessary to manage risk.
The mortgage portfolio is built on a property-by-property basis using a carefully structured investment philosophy and process.
Starting with local and regional economic and market analyses, we create a model portfolio with a well-diversified asset mix to guide our mortgage origination and portfolio management process. The team analyzes each potential investment by examining the underlying real estate, the financial and managerial strengths of the borrower, and the financial strength of the tenants. Insights from our equity and fixed income teams assist in our analysis. For suitable opportunities, we structure the mortgage loan to provide attractive returns and protection for our clients. We actively manage the portfolio to keep cash to a minimum, adjust duration to reflect interest rate conditions, and provide diversification by region, property type, loan type and borrower.
Tom Harder, CFA
When TD Greystone Asset Management (“TD Greystone”) first opened its doors in 1988, alternatives were a component of our investment solutions to institutional clients. We truly believed — from day one — that a well-diversified portfolio should include alternative investments.
Alternative investments (i.e. real estate, infrastructure, and private debt, which includes mortgages) have historically offered improved diversification (i.e. lower correlation and lower volatility), stable long-term cash flows, asset-liability matching and inflation hedging. At TD Greystone, we leverage the deep knowledge of our alternatives team to construct an integrated open-ended Alternatives Mandate that provides investors with access to multiple asset strategies in a scalable and efficient manner.
- We believe over the long term, the income generated by alternative assets contributes the majority of the total return.
- Consequently, TD Greystone's philosophy is to protect, grow and build the income stream of the Greystone Alternative Plus Solution*.
- We follow an income/income growth approach involving active management and multi-dimensional risk management.
TD Greystone follows a disciplined, repeatable investment process to identify investments and actively manage a fully diversified alternatives portfolio. The process consists of the following steps:
- Macroeconomic trends
- Local market conditions
- Robust due diligence process
- External and internal research
- Determines portfolio diversification
- Monitors policy compliance
- Manages cash flows
- Team-based, hands on decisions
Portfolio Asset Mix:
Alternative Plus Solution
* The TD Greystone Alternative Plus Solution is an integrated open-ended alternatives mandate where a client invests in the Greystone Infrastructure Fund (Canada) LP, the Greystone Mortgage Fund and the Greystone Real Estate Fund Inc. or the Greystone Real Estate LP Fund. TD Greystone Asset Management holistically manages the underlying cash flows and liquidity of the allocation as well as the asset mix between the underlying strategies.