November 21, 2016 -- TD Asset Management Inc. (TDAM), manager of TD Mutual Funds, announced today it will lower the maximum annual management fees on select series of 45 TD Mutual Funds, including its already competitively priced, fee-based series offering, on or about March 28, 2017.
"We continually look for ways to help advisors assist clients in reaching their investment goals," said Bruce Cooper, Chief Executive Officer, TD Asset Management. "Reducing our already competitive management fees is a great example of how we strive to do this."
TDAM will also simplify its high net worth (HNW) offering by making changes to the HNW series (Premium Series, Premium F‑Series, K‑Series and PS‑Series) of certain TD Mutual Funds by:
- Terminating the series;
- Closing the series to all purchases;
- Closing the series to purchases by new investors; or
- Converting securityholders of a HNW series to another series which will have the exact same fees and features.
Effective end of business today, all terminating HNW series will be closed to purchases and will subsequently be terminated on or about March 28, 2017. All other changes to the HNW series will be implemented on or about March 28, 2017.
This simplified approach to pricing will make it easier to determine the appropriate series of TD Mutual Funds for investors.
Following is a detailed description of all of the changes.
Reducing management fees
The maximum annual management fee will be reduced on select series of 45 TD Mutual Funds, effective on or about March 28, 2017 as set out in the following tables:
Fixed Income Funds
Decrease in maximum annual management fees | ||||||||
F-Series & S-Series (%)1 | Investor Series & H-Series (%)1 | Advisor Series & T-Series (%)1 | D-Series (%) | |||||
Current | New | Current | New | Current | New | Current | New | |
TD Short Term Bond Fund | 0.75 | 0.55 | - | - | 1.25 | 1.00 | 0.90 | 0.80 |
TD Canadian Bond Fund | 0.60 | 0.55 | - | - | 1.25 | 1.00 | 0.90 | 0.80 |
TD Income Advantage Portfolio | 1.00 | 0.70 | 1.50 | 1.40 | 1.60 | 1.40 | 1.00 | 0.95 |
TD Canadian Core Plus Bond Fund | 0.75 | 0.55 | 1.25 | 1.05 | 1.25 | 1.05 | 1.00 | 0.80 |
TD Canadian Corporate Bond Fund | 0.75 | 0.60 | 1.25 | 1.10 | 1.25 | 1.10 | 1.00 | 0.85 |
TD Corporate Bond Plus Fund | 0.85 | 0.65 | 1.35 | 1.15 | 1.35 | 1.15 | - | - |
TD U.S. Corporate Bond Fund | 0.75 | 0.60 | 1.25 | 1.10 | 1.25 | 1.10 | 1.00 | 0.85 |
TD Real Return Bond Fund | 0.60 | 0.55 | - | - | - | - | - | - |
TD Global Bond Fund | 0.90 | 0.85 | - | - | - | - | - | - |
1 All Funds may not offer all indicated series.
Balanced Funds
Decrease in maximum annual management fees | ||||||||
F-Series & S-Series (%) | Investor Series & H-Series (%) | Advisor Series & T-Series (%) | D-Series (%) | |||||
Current | New | Current | New | Current | New | Current | New | |
TD U.S. Monthly Income Fund | 0.85 | 0.75 | - | - | - | - | 1.00 | 0.90 |
TD U.S. Monthly Income Fund– C$ | 0.85 | 0.75 | - | - | - | - | 1.00 | 0.90 |
TD Strategic Yield Fund | - | - | - | - | - | - | 1.10 | 1.00 |
TD Dividend Income Fund | 0.85 | 0.75 | - | - | 1.85 | 1.75 | - | - |
Canadian Equity Funds
Decrease in maximum annual management fees | ||||||||
F-Series & S-Series (%) | Investor Series & H-Series (%) | Advisor Series & T-Series (%) | D-Series (%) | |||||
Current | New | Current | New | Current | New | Current | New | |
TD Canadian Low Volatility Fund | 0.85 | 0.75 | 1.85 | 1.70 | 1.85 | 1.70 | 1.10 | 1.00 |
TD Dividend Growth Fund | 0.85 | 0.80 | - | - | 1.85 | 1.75 | - | - |
U.S. Equity Funds
Decrease in maximum annual management fees | ||||||||
F-Series& S-Series (%)1 | Investor Series & H-Series (%)1 | Advisor Series & T-Series (%)1 | D-Series (%) | |||||
Current | New | Current | New | Current | New | Current | New | |
TD U.S. Risk Managed Equity Fund | 0.85 | 0.80 | 1.85 | 1.70 | 1.85 | 1.70 | 1.10 | 1.05 |
TD U.S. Low Volatility Fund | 0.85 | 0.80 | 1.85 | 1.70 | 1.85 | 1.70 | 1.10 | 1.05 |
TD U.S. Low Volatility Currency Neutral Fund | 0.85 | 0.80 | 1.85 | 1.70 | 1.85 | 1.70 | 1.10 | 1.05 |
TD North American Dividend Fund | 1.00 | 0.80 | 1.85 | 1.70 | 1.85 | 1.70 | 1.10 | 1.05 |
Epoch U.S. Shareholder Yield Fund | 1.00 | 0.85 | - | - | - | - | - | - |
Epoch U.S. Large- Cap Value Fund | 1.00 | 0.85 | - | - | - | - | - | - |
TD U.S. Blue Chip Equity Fund | 1.00 | 0.95 | 2.00 | 1.85 | 2.00 | 1.85 | 1.25 | 1.20 |
TD U.S. Quantitative Equity Fund | 0.85 | 0.80 | - | - | - | - | - | - |
TD U.S. Equity Portfolio | 1.00 | 0.85 | 2.00 | 1.85 | 2.00 | 1.85 | - | - |
1 All Funds may not offer all indicated series.
Global and International Equity Funds
Decrease in maximum annual management fees | ||||||||
F-Series& S-Series (%)1 | Investor Series & H-Series (%)1 | Advisor Series & T-Series (%)1 | D-Series (%) | |||||
Current | New | Current | New | Current | New | Current | New | |
TD Global Risk Managed Equity Fund | 0.90 | 0.85 | 1.90 | 1.80 | 1.90 | 1.80 | 1.15 | 1.10 |
TD Global Low Volatility Fund | 1.00 | 0.90 | 2.00 | 1.90 | 2.00 | 1.90 | 1.25 | 1.15 |
Epoch Global Shareholder Yield Fund | 1.00 | 0.95 | 2.00 | 1.95 | 2.00 | 1.95 | 1.25 | 1.20 |
Epoch Global Shareholder Yield Currency Neutral Fund | 1.00 | 0.95 | 2.00 | 1.95 | 2.00 | 1.95 | 1.25 | 1.20 |
Epoch Global Equity Fund | 1.00 | 0.95 | 2.00 | 1.95 | 2.00 | 1.95 | 1.25 | 1.20 |
Epoch International Equity Fund | 1.00 | 0.95 | 2.00 | 1.95 | 2.00 | 1.95 | 1.25 | 1.20 |
TD International Growth Fund | 1.15 | 0.90 | 2.00 | 1.90 | 2.00 | 1.90 | 1.25 | 1.15 |
1 All Funds may not offer all indicated series.
Sector Funds
Decrease in maximum annual management fees | ||||||||
F-Series& S-Series (%) | Investor Series & H-Series (%) | Advisor Series & T-Series (%)1 | D-Series (%) | |||||
Current | New | Current | New | Current | New | Current | New | |
TD Resource Fund | - | - | - | - | 2.00 | 1.85 | - | - |
TD Precious Metals Fund | - | - | - | - | 2.00 | 1.85 | - | - |
1 All Funds may not offer all indicated series.
Retirement Portfolios
Decrease in maximum annual management fees | |||||||||
F-Series & S-Series (%) | Investor Series & H-Series (%) | Advisor Series & T-Series (%) | D-Series (%) | ||||||
Current | New | Current | New | Current | New | Current | New | ||
TD US$ Retirement Portfolio | 0.75 | 0.65 | 1.50 | 1.40 | 1.50 | 1.40 | - | - | |
TD Retirement Conservative Portfolio | 0.75 | 0.65 | 1.50 | 1.40 | 1.50 | 1.40 | - | - | |
TD Retirement Balanced Portfolio | 0.85 | 0.75 | 1.75 | 1.65 | 1.75 | 1.65 | - | - | |
Corporate Class Funds
Decrease in maximum annual management fees | ||||||
F-Series (%) | Investor Series (%) | Advisor Series (%) | ||||
Current | New | Current | New | Current | New | |
TD Dividend Income Class | 0.85 | 0.75 | - | - | 1.85 | 1.75 |
TD Canadian Low Volatility Class | 0.85 | 0.75 | 1.85 | 1.70 | 1.85 | 1.70 |
TD Dividend Growth Class | 0.85 | 0.80 | - | - | 1.85 | 1.75 |
TD U.S. Risk Managed Equity Class | 0.85 | 0.80 | 1.85 | 1.70 | 1.85 | 1.70 |
Epoch U.S. Large-Cap Value Class | 1.00 | 0.85 | - | - | - | - |
TD Global Risk Managed Equity Class | 0.90 | 0.85 | 1.90 | 1.80 | 1.90 | 1.80 |
TD Global Low Volatility Class | 1.00 | 0.90 | 2.00 | 1.90 | 2.00 | 1.90 |
Epoch Global Equity Class | 1.00 | 0.95 | 2.00 | 1.95 | 2.00 | 1.95 |
TD International Growth Class | 1.15 | 0.90 | 2.00 | 1.90 | 2.00 | 1.90 |
Simplifying the HNW Series Offering
On or about March 28, 2017, TDAM will liquidate the holdings of the terminating HNW series at fair market value and distribute the net assets to securityholders.
If a HNW series will be converted to a different series, the conversion will take place on or about March 28, 2017 at fair market value. This conversion to a different series will not result in a taxable disposition to securityholders. If the current management fee of the destination series is higher than the management fee of the applicable HNW series, TDAM will reduce such management fee to align with the respective HNW series as of March 28, 2017 for all securityholders of the destination series. As such, securityholders of the HNW series will not directly or indirectly be subject to any increase in management fees or administration fees as a result of the conversion.
Securityholders of an applicable HNW series that will be terminated, closed to all purchases or converted to another series will be provided written notice at least 60 days prior to March 28, 2017.
TD Mutual Funds | Premium Series | Premium F‑Series | K‑Series | PS‑Series |
|---|---|---|---|---|
Money Market Funds | ||||
TD U.S. Money Market Fund | Closed to New Investors | - | - | - |
Fixed Income Funds | ||||
TD Short Term Bond Fund | No New Purchases | Terminate | - | - |
TD Canadian Bond Fund | No New Purchases | No New Purchases | - | - |
TD Income Advantage Portfolio | Closed to New Investors | Convert to F‑Series | No New Purchases | Convert to S‑Series |
TD Canadian Core Plus Bond Fund | Closed to New Investors | No New Purchases | - | - |
TD Canadian Corporate Bond Fund | Terminate | Terminate | - | - |
TD Corporate Bond Plus Fund | No New Purchases | - | - | - |
TD U.S. Corporate Bond Fund | Terminate | Terminate | - | - |
TD High Yield Bond Fund | Terminate | Terminate | - | - |
Balanced Funds | ||||
TD Tactical Monthly Income Fund | Closed to New Investors | No New Purchases | No New Purchases | Terminate |
TD U.S. Monthly Income Fund | Closed to New Investors | No New Purchases | Terminate | Terminate |
TD U.S. Monthly Income Fund – C$ | No New Purchases | Terminate | - | - |
TD Strategic Yield Fund | No New Purchases | Terminate | - | - |
TD Dividend Income Fund | Closed to New Investors | Convert to F‑Series | - | - |
Canadian Equity Funds | ||||
TD Canadian Low Volatility Fund | Convert to Investor Series | Convert to F‑Series | - | - |
TD Dividend Growth Fund | Closed to New Investors | No New Purchases | - | - |
TD Canadian Equity Fund | No New Purchases | Terminate | - | - |
U.S. Equity Funds | ||||
TD U.S. Risk Managed Equity Fund2 | Convert to Investor Series | Convert to F‑Series | - | - |
TD U.S. Low Volatility Fund2 | Convert to Investor Series | Convert to F‑Series | - | - |
TD North American Dividend Fund | Convert to Investor Series | Convert to F‑Series | - | - |
Epoch U.S. Shareholder Yield Fund2 | Terminate | Terminate | - | - |
Epoch U.S. Large Cap Value Fund2 | Terminate | Terminate | - | - |
Global Equity Funds | ||||
TD Global Risk Managed Equity Fund | Terminate | Convert to F‑Series | - | - |
TD Global Low Volatility Fund | No New Purchases | No New Purchases | - | - |
Epoch Global Shareholder Yield Fund | Terminate | Terminate | - | - |
Epoch Global Equity Fund | Terminate | Terminate | - | - |
Target Return Funds | ||||
TD Target Return Conservative Fund | No New Purchases | Terminate | - | - |
TD Target Return Balanced Fund | Terminate | Terminate | - | - |
Retirement Portfolios | ||||
TD US$ Retirement Portfolio | Terminate | Convert to F‑Series | Terminate | Convert to S‑Series |
TD Retirement Conservative Portfolio | Closed to New Investors | Convert to F‑Series | No New Purchases | Convert to S‑Series |
TD Retirement Balanced Portfolio | Closed to New Investors | Convert to F‑Series | No New Purchases | Convert to S‑Series |
2 Changes apply to both the Canadian and US dollar purchase options
About TD Asset Management
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 more than 2 million retail investors and offers a broadly diversified suite of investment solutions including mutual funds, professionally management portfolios and corporate class funds. Collectively, TDAM manages over C$310 billion in assets as at September 30, 2016.
For further information: Laura Mergelas, Corporate & Public Affairs, TD Bank Group, 416-983-1514, laura.mergelas@td.com
