TD Asset Management Inc. (TDAM) is making numerous changes to investment funds.
The Toronto-based firm intends to merge three funds, it said Thursday in a news release. On or about Oct. 25, the TD Balanced Income Fund will be discontinued and merged into the TD Diversified Monthly Income Fund, the TD Advantage Balanced Income Portfolio will be merged into the TD Managed Income Portfolio and the TD Advantage Balanced Portfolio will be merged into the TD Managed Income & Moderate Growth Portfolio.
Once the mergers receive unitholder and regulatory approval, TDAM intends to reduce the management fee for each series of the TD Diversified Monthly Income Fund.
TDAM also plans to change the investment objectives of the TD Asian Growth Fund, the TD Canadian Bond Index Fund, the TD Canadian Index Fund, the TD U.S. Index Fund and the TD International Index Fund. If the changes, which are detailed in TDAM’s news release, receive unitholder approval, TDAM also intends to reduce the funds’ management fees
TDAM intends to amend the declaration of trust for the TD Canadian Bond Fund to allow TDAM to make material changes to the declaration of trust without seeking unitholder approval to do so. If the amendment is approved, TDAM would notify unitholders of any material changes to the declaration of trust at least 21 days prior to the changes taking effect.
The risk ratings for seven funds — the TD High Yield Bond Fund, the TD Canadian Low Volatility Fund, the TD Canadian Low Volatility Class, the TD Canadian Equity Fund, the TD Canadian Equity Class, the TD Resource Fund and the TD Retirement Balanced Portfolio — are being lowered based on methodology mandated by the Canadian Securities Administrators.
The TD Strategic Yield Fund will be renamed the TD Global Tactical Monthly Income Fund on or about Nov. 1. TDAM said the new name is intended to reflect how the fund is managed, adding that there will be no change to its investment objectives or strategies.
Additionally, a number of mutual funds and managed asset portfolios will no longer accept additional purchases, effective on or about Nov. 1. These include the TD FundSmart Managed Aggressive Growth Portfolio, the FundSmart Managed Income & Moderate Growth Portfolio, the TD FundSmart Managed Balanced Growth Portfolio and the TD Advantage Balanced Growth Portfolio.
Finally, on or about Nov. 1, TDAM said the back-end load, low-load and low-load-2 purchase options of Advisor Series, T5 Series and T8 Series securities of the TD Mutual Funds and TD Managed Assets Program will be closed to purchases by all investors. This includes purchases made through pre-authorized contribution plans.
For details of all the proposed changes, see TDAM’s news release.