TD Asset Management Inc. announces proposal to introduce administration fees for the TD Emerald Funds

TORONTO, Aug. 9, 2017 /CNW/ - TD Asset Management Inc. ("TDAM") announced today that it is proposing to pay certain operating expenses for TD Emerald Canadian Treasury Management Fund, TD Emerald Canadian Treasury Management – Government of Canada Fund, TD Emerald Canadian Short Term Investment Fund, TD Emerald Canadian Bond Index Fund, TD Emerald Balanced Fund, TD Emerald Canadian Equity Index Fund, TD Emerald U.S. Market Index Fund and TD Emerald International Equity Index Fund (collectively, the "Funds") in return for a new administration fee payable by each Fund to TDAM.  Subject to providing prior written notice to investors or obtaining investor approval, as further described below, the administration fee will be implemented on or about January 1, 2018.

Administration Fee

Currently, each Fund pays all of its operating expenses. If the administration fees are implemented, TDAM, instead of the Funds, will pay some of the operating expenses. These operating expenses will be: legal fees relating to: (i) the qualification of the Funds for distribution under a simplified prospectus; (ii) the Funds' compliance with continuous disclosure requirements under securities legislation; and (iii) regulatory applications for exemptive relief on behalf of the Funds; auditing, tax, accounting and other similar professional advisory fees; safekeeping and custodian charges; registrar and transfer agency fees; portfolio valuation costs; fund accounting, reporting and record-keeping costs; charges relating to the operation of the bank accounts of the Funds; insurance costs; costs and expenses relating to the issue, redemption, reclassification, redesignation, consolidation or subdivision of units of the Funds; unitholder account maintenance and reporting; fees and expenses relating to the preparation, translation, printing, and dissemination of offering documents, continuous disclosure documents, notices and other communications to unitholders; and all sales taxes for such expenses, costs and fees.

The operating expenses that will continue to be paid by the Funds will be those not specified above, including, without limitation: all taxes applicable to the Funds; borrowing costs; filing and regulatory fees payable to securities regulatory authorities relating to the distribution of units and continuous disclosure of the Funds; SEDAR system fees; costs or expenses associated with the Funds' independent review committee (the "IRC"), including remuneration of IRC members, costs of indemnifying IRC members and insurance costs and costs of legal and other services or advisors to IRC members; legal fees other than those described above; and costs associated with compliance with any new governmental or regulatory requirements applicable after the effective date of the administration fee.

The administration fee rates for each Fund will be based on the net asset value of the Fund.  The administration fee will be calculated and accrued daily and paid monthly.

Unitholder Notification

TDAM will send unitholders of each of TD Emerald Canadian Treasury Management Fund and TD Emerald Canadian Treasury Management – Government of Canada Fund a written notice providing the details of the administration fee applicable to their Fund at least 60 days prior to January 1, 2018, as required by securities legislation. The annual administration fee rates for each of these Funds will be as follows:

 Fund

Tier 1

Tier 2

Tier 3


First $250,000,000

Next $250,000,000

Over $500,000,000

TD Emerald Canadian Treasury

Management Fund

0.03%

0.02%

0.01%

TD Emerald Canadian Treasury

Management - Government of Canada

Fund

0.03%

0.02%

0.01%

 

Unitholder Approval

The approval of unitholders of TD Emerald Canadian Short Term Investment Fund, TD Emerald Canadian Bond Index Fund, TD Emerald Balanced Fund, TD Emerald Canadian Equity Index Fund, TD Emerald U.S. Market Index Fund and TD Emerald International Equity Index Fund is required in order for TDAM to implement the administration fee for the respective Funds, pursuant to the declaration of trust governing these Funds.  Unitholders of record on or about October 4, 2017 of these Funds will receive the applicable meeting materials in October 2017.  Meetings for these unitholders will be held on or about November 14, 2017. The proposed annual administration fee rates for each of these Funds are as follows:

 Fund

Tier 1

Tier 2

Tier 3


First $250,000,000

Next $250,000,000

Over $500,000,000

TD Emerald Canadian Short Term

Investment Fund

0.03%

0.02%

0.01%


First $200,000,000

Next $300,000,000

Over $500,000,000

TD Emerald Canadian Bond Index

Fund

0.03%

0.02%

0.01%


First $70,000,000

Next $300,000,000

Over $370,000,000

TD Emerald Balanced Fund

0.03%

0.02%

0.01%


First $200,000,000

Next $400,000,000

Over $600,000,000

TD Emerald Canadian Equity Index

Fund

0.03%

0.02%

0.01%


First $300,000,000

Next $400,000,000

Over $700,000,000

TD Emerald U.S. Market Index Fund

0.03%

0.02%

0.01%


First $1,100,000,000

Next $1,250,000,000

Over $2,350,000,000

TD Emerald International Equity Index

Fund

0.03%

0.02%

0.01%

 

IRC Recommendation

The IRC of the Funds has provided a positive recommendation after determining that the administration fee, if implemented, would achieve a fair and reasonable result for each Fund.

Further information about the proposed administration fee will be available in the material change report to be filed in connection with this proposal, which will be posted on www.sedar.com.

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, separately managed portfolios and corporate class funds. Collectively, TDAM manages C$347 billion in assets as at June 30, 2017.

SOURCE TD Asset Management Inc.

For further information: Emily Vear, TD Bank Group, 416-983-2132, emily.vear@td.com


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