Important updates for the TD Greystone Target Date Plus Funds
Plan sponsors may wish to consider whether this investment news has any implications for the investment options available within their plans. Sun Life Assurance Company of Canada purchases units of the funds listed below, which are established as segregated funds in accordance with the Insurance Companies Act (Canada).
This is an informational update only and you don’t need to take any action as a result of this news.
TD Asset Management (TDAM) recently announced changes to the TD Greystone Target Date Plus fund series (Target Date Plus), as well as changes to the portfolio management team.
Changes to Target Date Plus glidepath
TDAM reviews the Target Date Plus glidepath annually. TDAM incorporates changes to long-term capital markets assumptions, demographic assumptions, asset classes, and funds into their annual review. TDAM made some material changes to optimize performance and manage risk across various market scenarios. TDAM cited that they made the changes in response to changing global economic conditions, including decreased bond yields, slightly reduced equity return expectations, and evolving retirement expenditure needs. Figure 1 below shows TDAM’s changes.
Figure 1: TD Greystone Target Date Plus Glidepath % changes for 2025
| TD Greystone Target Date Plus Funds (%) | Age 25 | Age 30 | Age 35 | Age 40 | Age 45 | Age 50 | Age 55 | Age 60 | Age 65+ |
|---|---|---|---|---|---|---|---|---|---|
| Total Equities | -1 | 0.5 | 1.5 | -1 | 0 | 0 | -0.5 | 0 | -1 |
| Canadian Core Equities | -1 | -1 | -1 | -1 | 0 | -1 | -1.5 | -1 | -1 |
| Canadian Low Volatility Equities | 1 | 1 | 1 | 1 | 0 | 1 | 1 | 1 | 1 |
| Global Small Cap Equities | 3 | 3 | 3 | 2.5 | 2.3 | 2 | 1.8 | 1.3 | 1 |
| Global Growth/Core Equities | 0 | 0 | 0.3 | 0 | 0 | -0.5 | -0.5 | -1 | -2 |
| Global Yield Equities | -8 | -6.5 | -5.8 | -7 | -5.5 | -4.5 | -4 | -2.5 | -1 |
| ACWI Low Volatility Equities | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -1 |
| Emerging Market Equities | 4 | 4 | 4 | 3.5 | 3.3 | 3 | 2.8 | 2.3 | 2 |
| Total Fixed Income | -2 | -3.5 | -4.5 | -2 | -2 | -2 | -1.5 | -2 | -2 |
| Cash and Short Term | 0 | 0 | 0 | -0.5 | -0.8 | -1 | -1 | -1 | -1 |
| Short Bonds | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1 | 2 |
| Universe Bonds | 0 | 0 | 0 | -1 | -2.8 | -1.8 | 2 | 1 | 1 |
| Long Bonds | 0 | 0 | 0 | 0.5 | 1.5 | 1.5 | 0.5 | 0 | 0 |
| Global Unconstrained Bonds | 0 | -0.5 | -1.5 | 0.5 | 0 | 0.8 | 0 | 0 | 0 |
| Real Return Bonds | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| High Yield | -2 | -2 | -2 | -2 | -2 | -2 | -2 | -2 | -2 |
| Commercial Mortgages1 | 0 | -1 | -1 | 0.5 | 2 | 0.5 | -1 | -1 | -1 |
| Total Alternatives | 3 | 3 | 3 | 3 | 2 | 2 | 2 | 2 | 2 |
| Canadian Real Estate2 | 2 | 2 | 2 | 2 | 1 | 1 | 1 | 1 | 1 |
| Global Infrastructure3 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Global Commodities | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 |
Source: TD Asset Management Inc. As of De 31, 2024
In summary, TDAM made the following key changes:
Equities:
- Slight increase in equities in earlier vintages before de-risking and ending with lower weights.
- Introduced Emerging Market and Global Small Cap Equities.
- Reduce the allocation to Global Core Equities for funds closer to maturity.
- Significant decrease in Global Yield Equities across all funds.
Fixed Income:
- Remove High Yield Bonds across all funds.
- Hold long bonds slightly longer.
- Replace money market funds with short bonds.
Alternatives:
- Increased allocation to Real Estate by decreasing mortgages and fixed income.
- Introduced a 1% strategic allocation to Global Commodities across all funds.
Figure 2: 2025 Strategic Glidepath for Target Date Plus
Source: TD Asset Management Inc. As of De 31, 2024
Changes to the Asset Allocation Investments Team
Earlier in 2025, TD Global Investment Solutions (TDGIS) announced changes to the portfolio management team responsible for the Target Date Plus funds.
As of February 17, 2025, Jafer Naqvi, Head of Institutional Asset Allocation and Lead Portfolio Manager (PM) of the Target Date Plus funds transitioned into a newly created role of Head of Client Portfolio Management and relinquished his portfolio management duties. Naqvi continues to support the transition of his portfolio management responsibilities during a six-month transition period.
With Naqvi relinquishing his portfolio management duties, TDGIS announced that Nicole Lomax, Portfolio Manager on the Target Date Plus funds, will become the Lead of Institutional Asset Allocation and the Lead-PM on the funds. Lomax joined TDAM in 2014 and has been co-lead PM on the Target Date Plus funds since 2021. Naqvi and Lomax have been jointly responsible for designing the strategic asset mix and making fund selection and for tactical asset allocation decisions.
To provide additional continuity and support, Michael Craig, Head of Asset Allocation and Derivatives will become a named portfolio manager in the Target Date Plus funds, while maintaining his current role and responsibilities.
TDGIS also announced that they expect to hire an additional PM at a later date to support expected future growth.
GRS Investment Solutions team view
We are generally comfortable with the changes to the glidepath that TDAM made in 2025. With 10-year Government of Canada Bond Yields declining from September 2023 to September 2024, it makes sense to re-allocate exposure from fixed income across the funds. We are also comfortable with the increase to the Alternatives and specifically for Canadian Real Estate.
Jafer Naqvi was the most experienced PM on the Target Date Plus funds and has managed the funds since their inception in 2015. His transition to a different role is a loss for Target Date Plus, however we are comforted by the continuity that Nicole Lomax provides, as well as the addition of Michael Craig to the PM team. Additionally, the six-month transition period and Naqvi’s ongoing presence at TDAM and involvement in supporting asset allocation committees further alleviates our concerns.
While Naqvi was the ultimate decision-maker, decisions at TDAM for the Target Date Plus funds are consensus-driven. Naqvi was supported by a broad set of resources at TDAM that provided research and guidance on the glidepath, strategic and tactical asset allocation and fund selection. We expect these resources to continue to be there to support Lomax as lead PM.
We continue to have Target Date Plus under ‘Additional Monitoring’ (least severe category) on the GRS Investment Solutions Watch List. We will monitor the changes and provide further updates as needed.
Questions?
Please contact your Sun Life Group Retirement Services Representative*
*In Quebec, registered as a Group annuity plans advisor.