U.S. Markets open in 7 hrs 8 mins

TD Asset Management Inc. Announces Results of Unitholder Meetings and Changes to its Mutual Fund Line-up

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.


View original content: http://www.newswire.ca/en/releases/archive/September2019/30/c3623.html