Toronto-based TD Asset Management Inc. (TDAM) plans to rename and expand its cash flow series options, launch new TD Mutual Funds series options and make changes to certain TD Mutual Funds, the company announced on Wednesday.
“These changes are designed to provide investors with a broader range of portfolio diversification choices and help strengthen TDAM’s existing lineup of investment solutions,” the company says in a news release.
On July 26, TDAM will rename its existing suite of cash flow series options to provide better transparency and increase the ease of use of the series. This change will include the target annualized distribution rate in the series name, either 5% or 8% depending on the fund.
Additionally, on Aug. 16, TDAM will launch new FT5 series extensions to provide two payout rate options (5% and 8%) on select existing fee-based cash flow series.
“These changes are designed to simplify and expand TDAM’s cash flow series options, seeking to make it easier for investors to choose the most suitable TDAM investment product to help meet their needs,” the company says.
Also on Aug. 16, TDAM will launch F-series on the TD Comfort Portfolios to allow for in-kind transfers of investor series TD Comfort Portfolios to a fee-based platform without triggering capital gains for clients holding assets in non-registered accounts. In addition, TDAM will add 14 U.S. dollar purchase options on certain F-series of existing TD mutual funds. “These new USD purchase options are designed to provide investors with a broader spectrum of investment alternatives to help meet their portfolio needs,” TD says.
On July 26, the company will lower the administration fee for TD U.S. Equity Portfolio as set out in the TD Mutual Funds simplified prospectus – reducing the administration fee from 0.30% to 0.08% on investor and D-series units of the funds. This change is not expected to result in a material reduction in the management fees which have been charged in respect to the affected series of the fund.
In addition, TDAM will reduce the management fee on institutional series of Epoch Global Shareholder Yield Fund – from 1.00% to 0.95%, in an effort to help provide better value for institutional investors.
Also effective July 26, the company will change the name of TD Entertainment & Communications Fund to TD Global Entertainment & Communications Fund. TDAM is changing the name of the fund to better reflect the underlying geographic asset allocation of the fund. The investment objectives and investment strategies of the fund will remain the same.
In addition, several TD mutual funds will be changing their risk ratings on July 26.
Details of all the planned changes are available in the company’s news release.