Update to TDAM Global Equity Shareholder Yield Investment Team

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 fund listed below, which is established as a segregated fund in accordance with the Insurance Companies Act (Canada).

In June 2024, TD Global Investment Solutions (TDGIS) announced that two co-PM’s on TDAM Global Shareholder Yield, Michael Welhoelter and John Tobin, would be retiring on Dec 31, 2024. Michael Welhoelter also serves as President and co-Chief Investment Officer (CIO) of Epoch Investment Partners, Inc. (TD Epoch).

TDAM Global Equity Shareholder Yield (the fund) is managed by the TD Epoch team within TDGIS. TD Epoch is a New York-based equity investment firm that was formed in 2004 and was acquired by TD Bank in 2013. TD Epoch has been partially integrated with TDAM but has retained a separate CIO and President, as well its New York-based presence.

Both Welhoelter and Tobin are experienced leaders within TD Epoch. Welhoelter joined TD Epoch in 2005 and has 38 years of experience. Tobin has been with TD Epoch since 2012 and has over 30 years of experience. Kera Van Valen will continue to act as Lead PM on the fund. Van Valen joined TD Epoch in 2008 and was an analyst in the firm’s Quantitative Research and Risk Management team before joining the Shareholder Yield strategies. Van Valen has been lead PM since 2017. She has 23 years of investment experience.

TD Epoch added Michael Jin, PM and Senior Research Analyst, and Lin Lin, PM and Head of Quantitative Research to the PM team effective June 30, 2024. Both have significant experience, and they will assume Welhoelter and Tobin’s responsibilities on the strategy as they transition to retirement. Jin joined TD Epoch in 2010 and has research experience from AllianceBernstein (AB) and corporate finance consulting experience at McKinsey & Company. Lin joined TD Epoch in 2017 and has 19 years of investment experience that has focused on quantitative research and portfolio management at investment managers Morgan Stanley and Sanford C. Bernstein.

Bill Booth, co-CIO, will become sole CIO of TD Epoch upon Welhoelter’s retirement. Booth will continue to report into TDAM CIO David Sykes. Booth will also join TD Epoch’s Board of Directors. TD Epoch will no longer have the role of President after Welhoelter’s retirement. Bruce Cooper, CEO of TDAM, will assume direct oversight of TD Epoch.

GRS Investment Solutions team view:

The retirements of the two most experienced members of the three person PM team on Global Shareholder Yield raises some concerns and warrants closer monitoring going forward. Michael Welhoelter is one of TD Epoch’s most experienced and senior leaders. He has played an important role in managing the firm as well as Epoch’s strategies.

Kera Van Valen provides continuity on the fund, having served as lead PM since 2017. She will continue to have the final decision on all buy and sell decisions. The additions to the team appear to be strong. Both Van Valen and Lin have significant experience in risk management and should have little difficulty replacing Welhoelter’s portfolio management contributions. Similarly, Jin has a strong background in fundamental research and should provide adequate coverage after Tobin’s retirement.

Bill Booth’s ongoing presence as CIO also provides continuity in investment leadership. TD Epoch’s integration into the broader TDAM/TDGIS organization reduces operational concerns stemming from the leadership changes.

We have placed Global Equity Shareholder Yield on our Watch List in the Additional Monitoring category. Additional Monitoring is the least severe of the three categories on our Watch List. We plan to meet with the updated team in upcoming months to better assess the full impact of the changes. We will provide further updates as needed.

Questions?

Please contact your Sun Life Group Retirement Services representative*

*In Quebec, registered as a Group annuity plans advisor.