TD Asset Management Inc. (TDAM) has added two mutual funds to its sustainability suite.
The funds are called the TD North American Sustainability Equity Fund and TD North American Sustainability Balanced Fund, and they’re being introduced to meet the growing demand for responsible investment in Canada, TDAM said in a release.
“Creating access to sustainable investment funds for investors has been a priority for TDAM,” the firm said, adding that it aims to support “best-in-class companies that demonstrate positive contributions that drive change.”
The new equity offering is an active fund that invests primarily in North American securities that are profitable while “also demonstrating positive contributions towards the Sustainable Development Goals (SDGs) as set out by the United Nations,” the release said.
The balanced fund invests in common share and bond investments that also contribute to the SDGs.
The common share investments of that fund “will tend to focus on industry leaders that, in our view, have sustainable competitive advantages evidenced by the high returns on capital, strong balance sheets and management teams that are able to manage capital efficiently,” the release said, while the bond investments will be comprised of environmental, social and governance-screened bonds that use a proprietary TDAM scoring system that assesses ESG risk.