Toronto-based TD Asset Management Inc. (TDAM on Tuesday announced changes to the management fee disclosure of the funds in TD Managed Assets Program (MAP) Portfolios.
Currently, the annual management fee rate for each series of each fund is expressed as a maximum annual rate in the simplified prospectus. Effective on or about Oct. 26, 2017, the simplified prospectus will disclose a specified annual management fee rate.
Going forward, where TDAM chooses to charge a management fee below the specified annual rate, a waived management fee will be stated in the financial reports of the applicable fund, TDAM says in its announcement.
For each series of each of the TD Managed Portfolios, TD FundSmart Managed Portfolios and TD Managed Index Portfolios under TD MAP, the specified annual management fee rate that will be disclosed will be a different rate than the maximum annual fee rate that is currently disclosed in the simplified prospectus.
Certain series of certain funds also have capped management expense ratios (MER), as disclosed in the simplified prospectus. The disclosed rate of the capped MERs for some of these series will be reduced.
According to TDAM, these changes are not expected to result in a material difference in the annual management fees or MERs charged to the funds in respect of affected series.
The annual management fee rates and capped MERs, if any, of the applicable series of the funds are listed in TDAM’s news release.