TDAM continues to refine its investment fund line-up to provide investors with more features and flexibility, including new U.S. dollar purchase options, series extensions, a pricing reduction, name changes and updates to certain investment funds' risk ratings
TORONTO, July 29, 2020 /CNW/ - TD Asset Management Inc. ("TDAM") today announced several changes to certain investment funds, as described below, providing more opportunities and ways to help investors reach their financial goals.
TD U.S. Equity Portfolio – Name Change & New U.S. Dollar Purchase Option
TDAM will rename TD U.S. Equity Portfolio to TD U.S. Equity Pool (the "Fund") to better reflect its investment strategy. The Fund is designed to be a comprehensive, one-stop, fund-of-fund solution for investors looking to access high-quality U.S. equities.
On August 11, 2020, U.S. dollar purchase options will be made available on Investor Series, Advisor Series and F-Series units of the Fund to provide even greater flexibility for investors.
Key benefits include:
- Two Layers of Active Management: Investors will benefit from both tactical adjustments made by the Portfolio Manager, as market opportunities arise, and the active investment approaches used by the underlying fund managers
- Unique Core-Satellite Approach: Combines a long-term focused strategic asset allocation with additional tactical levers using various size, style and sector exposures to take advantage of short-term market opportunities
- Active Risk Management: The Portfolio Manager will have a long-term focus while attempting to defensively position the portfolio when appropriate
- Depth of Experience: Combines the expertise of the Asset Allocation and Fundamental Equity teams at TDAM
In addition, TDAM is adding the flexibility for TD U.S. Equity Pool to start using derivative instruments. The Fund may use derivatives for hedging and non-hedging purposes and may use various derivatives, such as options, futures, forward contracts and swaps to, among other things, gain exposure to equity instruments without investing in them directly, reduce the risk associated with currency fluctuations, gain exposure to gold, enhance income and provide downside risk protection. Derivatives will only be used by the Fund in accordance with securities regulations. The Fund may only begin to use derivatives after providing unitholders with 60 days' written notice of its intent to do so.
TD International Growth Class – Name Change
TDAM will also rename TD International Growth Class to TD International Stock Class (the "Class") to reflect a change in Class' underlying investment. Due to the pending termination of TD International Growth Fund, on or about August 25, 2020, TD International Stock Class has ceased investment in TD International Growth Fund and has moved to investing in TD International Stock Fund. The Class is designed for investors looking to invest in, or gain exposure to, stocks and other securities of, or with exposure to, companies outside of Canada and the U.S.
TD International Stock Fund – Pricing Reduction & Series Extensions
To provide more value, as of July 29, 2020, TDAM will reduce the management fee charged on D-Series of TD International Stock Fund by 10 basis points, from 1.25% to 1.15%. To offer greater flexibility, Investor Series, Advisor Series and F-Series of TD International Stock Fund will be made available to investors for purchase on or about August 11, 2020.
TD International Stock Fund gives investors access to:
- Exposure to companies identified as having the potential for strong earnings growth, positive business momentum and sustainable profitability
- A robust team-based process using a deep analysis of stock, sector and country contribution to help strengthen TD International Stock Fund's overall risk exposure relative to its benchmark
- Exposure to a concentrated portfolio of companies with measurable high impact growth characteristics
Risk Rating Changes
TDAM announced that the risk rating for TD North American Dividend Fund, TD U.S. Dividend Growth Fund, TD North American Small-Cap Equity Fund and TD Global Entertainment & Communications Fund will be lowered as indicated below:
TD Mutual Fund |
Previous Risk Rating |
New Risk Rating |
TD North American Dividend Fund |
Medium |
Low to Medium |
TD U.S. Dividend Growth Fund |
Medium |
Low to Medium |
TD North American Small-Cap Equity Fund |
Medium to High |
Medium |
TD Global Entertainment & Communications |
Medium to High |
Medium |
These risk rating changes will be reflected in the TD Mutual Funds Simplified Prospectus and Fund Facts that will be filed with the Canadian securities regulators on or about July 29, 2020.
These risk rating changes are in accordance with the methodology mandated by the Canadian Securities Administrators (the "CSA") and the related annual review by TDAM to determine the risk level of publicly-offered investment funds. There are no changes to the investment objectives, strategies or management of these funds. A summary of the CSA's risk classification methodology, and each of the funds' investment objectives and strategies can be found in the TD Mutual Funds Simplified Prospectus available on TDAM's website, as noted below, or on SEDAR at www.sedar.com.
Additional information about TD Mutual Funds, including the Simplified Prospectus and Fund Facts, can be found at TDAssetManagement.com
Commissions, management fees and expenses all may be associated with investments in mutual funds. Please read the Simplified Prospectus and Fund Facts before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.
TD Mutual Funds are managed by TD Asset Management Inc., a wholly-owned subsidiary of The Toronto-Dominion Bank.
®The TD logo and other trademarks are the property of The Toronto-Dominion Bank or its subsidiaries.
About TDAM
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, professionally managed portfolios and corporate class funds. Asset management businesses at TD manage $359 billion in assets as at June 30, 2020. Assets under management include TD Asset Management Inc., TDAM USA Inc. and Epoch Investment Partners Inc. (Epoch). All entities are wholly-owned subsidiaries of The Toronto-Dominion Bank.
SOURCE TD Asset Management Inc.
Sarah Sartaj, TD Bank Group, [email protected]
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