TORONTO, Sept. 30, 2019 /CNW/ - TD Asset Management Inc.
("TDAM"), the manager of TD Mutual Funds and TD Managed Assets
Program portfolios, today announced that the required approvals
were received from unitholders to proceed with certain mutual fund
mergers and other changes, as more fully described below.
Fund Merger
TD Balanced Income Fund (the "discontinuing fund") has received
the requisite regulatory and unitholder approvals to proceed with
the merger into TD Diversified Monthly Income Fund (the "continuing
fund").
TDAM expects to implement the merger on or about October 25, 2019. The merger will be effected on
a tax-deferred basis for unitholders. As a result of the merger,
unitholders of each series of the discontinuing fund will receive
units of the equivalent series of the continuing fund, determined
on a dollar-for-dollar basis.
The discontinuing fund will be wound up as soon as reasonably
possible following its merger.
With respect to the proposed mergers of TD Advantage Balanced
Income Portfolio into TD Managed Income Portfolio and TD Advantage
Balanced Portfolio into TD Managed Income & Moderate Growth
Portfolio, the applicable special meetings of unitholders have been
adjourned. Accordingly, and as previously stated in the Notice of
Special Meeting of Unitholders document that was mailed to
unitholders of these funds, the adjourned meetings will be held on
October 8, 2019 at 10:00 a.m. (ET) at TD Bank Tower, 66 Wellington
Street West, 54th Floor, Toronto,
Ontario, M5K 1A2.
Investment Objectives Changes
Each of the following funds has received unitholder approval to
change their investment objectives as indicated in the table
below:
Fund
|
Current
Investment
Objectives
|
New Investment
Objectives
|
Approximate
Effective
Date of
Change
|
TD Asian Growth
Fund
|
The fundamental
investment objective is to seek to achieve long-term capital growth
by investing primarily in equity securities of issuers in Asia and
Australasia, excluding Japan.
|
The fundamental
investment objective is to seek to earn dividend income and
to generate long term capital appreciation by investing primarily
in equity securities of issuers located in China.
|
February 3,
2020
|
TD Canadian Bond
Index Fund
|
The fundamental
investment objective is to maximize total return through both
interest income and capital appreciation by tracking the
performance of the FTSE Canada Universe Bond Index (the "Universe
Index"). The Universe Index is comprised of Canadian
investment-grade bonds which mature in more than one
year.
|
The fundamental
investment objective is to maximize total return through both
interest income and capital appreciation by tracking the
performance of a Canadian aggregate bond index that measures the
investment return of the Canadian investment-grade bond
market.
|
October 31,
2019
|
TD Canadian Index
Fund
|
The fundamental
investment objective is to provide long-term growth of capital
primarily by purchasing Canadian equity securities to track the
performance of the S&P/TSX Composite Total Return Index
("S&P/TSX Composite Index").
The S&P/TSX
Composite Index is comprised of Canadian issuers traded on the
Toronto Stock Exchange.
|
The fundamental
investment objective is to provide long-term growth of capital by
tracking the performance of a broad Canadian equity market index
that measures the investment return of publicly traded securities
in the Canadian market.
|
November 7,
2019
|
TD U.S. Index
Fund
|
The fundamental
investment objective is to provide long-term growth of capital by
primarily purchasing U.S. equity securities to track the
performance of the S&P 500 Total Return Index ("S&P 500
Index").
The S&P 500 Index
is comprised of 500 widely-held U.S. issuers.
|
The fundamental
investment objective is to provide long-term growth of capital by
tracking the performance of a broad U.S. equity market index that
measures the investment return of large capitalization U.S.
stocks.
|
November 7,
2019
|
TD International
Index Fund
|
The fundamental
investment objective is to track the MSCI EAFE Index.
The MSCI EAFE Index
is a broadly diversified index consisting of equity securities of
companies domiciled in developed markets outside the U.S. and
Canada.
|
The fundamental
investment objective is to provide long-term growth of capital by
tracking the performance of an international equity markets index
that measures the investment return of mid- and
large-capitalization issuers in the European, Asian and Far East
regions.
|
November 7,
2019
|
TD Asian Growth Fund
To reflect the change of its investment objectives, effective on
or about February 3, 2020,
TD Asian Growth Fund will change its name to TD China Income
& Growth Fund. In addition, Martin Currie Inc. will be removed
as sub-adviser of the fund and the fund's benchmark will be changed
to the Shanghai Shenzhen CSI 300 Index. As a result, the fund's
risk rating will increase to "high" from "medium to high".
Investment Strategy Changes
Following the investment objectives changes, the investment
strategies of certain index funds will be modified to permit each
fund to invest up to 100% of its assets directly in certain TD ETFs
as indicated below.
Fund
|
TD
ETF
|
TD Canadian Bond
Index Fund
|
TD Canadian Aggregate
Bond Index ETF
|
TD Canadian Index
Fund
|
TD Canadian Equity
Index ETF
|
TD U.S. Index
Fund
|
TD U.S. Equity Index
ETF
|
TD International
Index Fund
|
TD International
Equity Index ETF
|
Benchmark Index Changes
Correspondingly, TDAM will be changing the benchmark indices for
certain index funds to the index provider Solactive AG as shown
below.
Fund
|
Current Benchmark
Index
|
New Benchmark
Index
|
TD Canadian Bond
Index Fund
|
FTSE Canada Universe
Bond
Index
|
Solactive Broad
Canadian Bond
Universe TR Index
|
TD Canadian Index
Fund
|
S&P/TSX Composite
Total
Return Index
|
Solactive Canada
Broad Market
Index (CA NTR)
|
TD U.S. Index
Fund
|
S&P 500 Total
Return Index
|
Solactive US Large
Cap Index
(CA NTR)
|
TD U.S. Index
Currency Neutral
Fund
|
S&P 500 Index
(Hedged) (C$)
|
Solactive US Large
Cap Hedged
to CAD Index (CA NTR)
|
TD International
Index Fund
|
MSCI EAFE
Index
|
Solactive GBS
Developed
Markets ex North America Large
& Mid Cap CAD Index (CA NTR)
|
TD International
Index Currency
Neutral Fund
|
MSCI EAFE Net
Dividend Index
– local currency
|
Solactive GBS
Developed
Markets ex North America Large
& Mid Cap Hedged to CAD Index (CA NTR)
|
Solactive AG is a market leader in developing bespoke
multi-asset class index solutions for exchange-traded funds and
other index-linked investment products for leading global
investment banks and asset managers.
Management Fee Changes
In addition, TDAM will reduce the management fee charged on the
series of the funds listed below.
Fund
|
Series
|
Current
Management
Fee
|
New
Management
Fee
|
Approximate
Effective Date of
Change
|
TD Diversified
Monthly
Income Fund
|
Investor
Series
Advisor
Series
|
2.00%
2.00%
|
1.95%
1.95%
|
October 25,
2019
|
TD Asian Growth
Fund
|
Investor
Series
Advisor
Series
Institutional
Series
F-Series
D-Series
|
2.25%
2.25%
1.20%
1.25%
1.50%
|
2.15%
2.15%
1.10%
1.15%
1.40%
|
February 1,
2020
|
TD Canadian Bond
Index Fund
|
Investor
Series
e-Series
F-Series
|
0.75%
0.45%
0.50%
|
0.65%
0.40%
0.15%
|
October 31,
2019
|
TD Canadian Index
Fund
|
Investor
Series
e-Series
F-Series
|
0.80%
0.30%
0.50%
|
0.60%
0.25%
0.15%
|
November 7,
2019
|
TD U.S. Index
Fund
|
Investor
Series
e-Series
Institutional
Series
F-Series
|
0.50%
0.35%
0.35%
0.50%
|
0.45%
0.30%
0.30%
0.15%
|
November 7,
2019
|
TD U.S. Index
Currency Neutral Fund
|
Investor
Series
e-Series
F-Series
|
0.80%
0.45%
0.50%
|
0.45%
0.30%
0.15%
|
November 7,
2019
|
TD International
Index
Fund
|
Investor
Series
e-Series
F-Series
|
0.90%
0.45%
0.50%
|
0.55%
0.40%
0.25%
|
November 7,
2019
|
TD International
Index
Currency Neutral Fund
|
Investor
Series
e-Series
F-Series
|
0.90%
0.45%
0.50%
|
0.55%
0.40%
0.25%
|
November 7,
2019
|
Declaration of Trust Amendment
In addition to the changes noted above, unitholders also
approved changes to the amendment provisions of TD Canadian Bond
Fund's declaration of trust in order to permit the fund to adopt
the same amendment provisions applicable to other TD Mutual
Funds.
TD Canadian Aggregate Bond Index ETF
Effective on or about October 31,
2019, TDAM will be changing TD Canadian Aggregate Bond Index
ETF's underlying index, the Solactive Canadian Select Universe Bond
Index, to the Solactive Broad Canadian Bond Universe TR Index. The
switch to the Solactive Broad Canadian Bond Universe TR Index will
provide investors with substantially the same exposure to Canadian
dollar-denominated investment grade public debt, including
securities issued by governments and corporate issuers. There will
be no other changes to the investment objectives or strategies of
TD Canadian Aggregate Bond Index ETF.
TD International Stock Fund
Greystone Managed Investments Inc. ("TD Greystone") currently
provides advice for TD International Stock Fund. Effective on or
about November 1, 2019, TD Greystone
will be amalgamated with TDAM and as such, will no longer be a
separate entity from TDAM. The portfolio management team led by
Alfred Li and Jeff Tiefenbach will continue to manage the fund
under TDAM, as portfolio adviser. There will be no change to the
fund's investment objectives or strategies as a result of the
amalgamation.
TD Asset Management Inc.
TD Asset Management (TDAM), a member of TD Bank Group, is a
North American investment management firm. Operating through TD
Asset Management Inc. in Canada
and TDAM USA Inc. in the U.S.,
TDAM brings new thinking to investors' most important challenges.
TDAM offers investment solutions to corporations, pension funds,
endowments, foundations and individual investors. Additionally,
TDAM manages assets on behalf of almost 2 million retail investors
and offers a broadly diversified suite of investment solutions
including mutual funds, exchange-traded funds, professionally
managed portfolios and corporate class funds. Asset management
businesses at TD manage $391 billion
in assets as at June 30, 2019. Assets
under management include TD Asset Management Inc., TDAM
USA Inc., Epoch Investment
Partners Inc. (Epoch) and TD Greystone Asset Management.
Commissions, management fees and expenses all may be associated
with mutual fund and/or exchange-traded fund ("ETF") investments
(collectively, "the Funds"). Trailing commissions may be associated
with mutual fund investments. ETF units are bought and sold at
market price on a stock exchange and brokerage commissions will
reduce returns. Please read the fund facts or summary documents and
the prospectus, which contain detailed investment information,
before investing in the Funds. The Funds are not covered by the
Canada Deposit Insurance Corporation or by any other government
deposit insurer and are not guaranteed or insured. Their values
change frequently. There can be no assurances that a money market
fund will be able to maintain its net asset value per unit at a
constant amount or that the full amount of your investment will be
returned to you. Past performance may not be repeated.
TD Mutual Funds and the TD Managed Assets Program portfolios are
managed by TD Asset Management Inc., a wholly-owned subsidiary of
The Toronto-Dominion Bank and are available through authorized
dealers.
The TD Canadian Bond Index Fund (the "Fund") has been developed
solely by TD Asset Management Inc. ("TDAM"). The Fund is not in any
way connected to or sponsored, endorsed, sold or promoted by the
London Stock Exchange Group plc and its group undertakings
(collectively, the "LSE Group"). FTSE Russell is a trading name of
certain of the LSE Group companies.
All rights in the FTSE Canada Universe Bond Index (the "Index")
vest in the relevant LSE Group company which owns the Index.
"FTSE®" is a trade mark of the relevant LSE Group company and is
used by any other LSE Group company under license. The Index is
calculated by or on behalf of FTSE International Limited or its
affiliate, agent or partner. The LSE Group does not accept any
liability whatsoever to any person arising out of (a) the use of,
reliance on or any error in the Index or (b) investment in or
operation of the Fund. The LSE Group makes no claim, prediction,
warranty or representation either as to the results to be obtained
from the Fund or the suitability of the Index for the purpose to
which it is being put by TDAM.
The S&P/TSX Composite Index is a product of S&P Dow
Jones Indices LLC, a division of S&P Global or its affiliates
("SPDJI") and TSX Inc., and has been licensed for use by The
Toronto‑Dominion Bank ("TD Bank"). Standard & Poor's®,
S&P® and S&P 500® are registered trademarks of Standard
& Poor's Financial Services LLC, a division of S&P Global
("S&P"); Dow Jones®, Dow Jones Industrial Average® and DJIA®
are registered trademarks of Dow Jones Trademark Holdings LLC ("Dow
Jones"); TSX is a trademark of TSX Inc.; and these trademarks have
been licensed for use by SPDJI and sublicensed for certain purposes
by TD Bank. The TD Canadian Index Fund is not sponsored, endorsed,
sold or promoted by SPDJI, Dow Jones, S&P, their respective
affiliates, or TSX Inc. and none of such parties make any
representation regarding the advisability of investing in the TD
Canadian Index Fund nor do they have any liability for any errors,
omissions, or interruptions of the S&P/TSX Composite Index.
The S&P 500 Index is a product of S&P Dow Jones Indices
LLC, a division of S&P Global, or its affiliates ("SPDJI"), and
has been licensed for use by The Toronto‑Dominion Bank ("TD Bank").
Standard & Poor's®, S&P® and S&P 500® are registered
trademarks of Standard & Poor's Financial Services LLC, a
division of S&P Global ("S&P"); Dow Jones®, Dow Jones
Industrial Average® and DJIA® are registered trademarks of Dow
Jones Trademark Holdings LLC ("Dow Jones"); and these trademarks
have been licensed for use by SPDJI and sublicensed for certain
purposes by TD Bank. The TD U.S. Index Fund is not sponsored,
endorsed, sold or promoted by SPDJI, Dow Jones, S&P or their
respective affiliates, and none of such parties make any
representation regarding the advisability of investing in the TD
U.S. Index Fund nor do they have any liability for any errors,
omissions, or interruptions of the S&P 500 Index.
The TD International Index Fund is not sponsored, endorsed, or
promoted by MSCI Inc. or its affiliates ("MSCI"), and MSCI bears no
liability with respect to the fund or any index on which the fund
is based. The fund's simplified prospectus contains a more detailed
description of the limited relationship MSCI has with TD Bank and
any related funds.
The TD Mutual Funds are not sponsored, promoted, sold or
supported in any other manner by Solactive AG nor does Solactive AG
offer any express or implicit guarantee or assurance either with
regard to the results of using the Index (as defined below) and/or
any trade mark(s) associated with the Index or the price of the
Index at any time or in any other respect. The Solactive Broad
Canadian Bond Universe TR Index, Solactive Canada Broad Market
Index, Solactive US Large Cap Index, Solactive US Large Cap Hedged
to CAD Index, Solactive GBS Developed Markets ex North America
Large & Mid Cap CAD Index and Solactive GBS Developed Markets
ex North America Large & Mid Cap Hedged to CAD Index are
calculated and published by Solactive AG. Solactive AG uses its
best efforts to ensure that the Index is calculated correctly.
Irrespective of its obligations towards the Issuer, Solactive AG
has no obligation to point out errors in the Index to third parties
including but not limited to investors and/or financial
intermediaries of the TD Mutual Funds. Neither publication of the
Index by Solactive AG nor the licensing of the Index or any trade
mark(s) associated with the Index for the purpose of use in
connection with the TD Mutual Funds constitutes a recommendation by
Solactive AG to invest capital in said TD Mutual Funds nor does it
in any way represent an assurance or opinion of Solactive AG with
regard to any investment in these TD Mutual Funds.
SOURCE TD Asset Management Inc.