Business Context and Reporting Period
Company: Toronto-Dominion Bank (TD Bank)
Filing Type: SEC Form 13F Information Table
Reporting Period: Quarter ended December 31, 2021
Context: This filing discloses the equity securities held by TD Bank as a registered investment manager. The portfolio consists of a diversified mix of U.S. and Canadian equities, including significant holdings in financials, technology, energy, and consumer staples. The filing lists holdings under "Sole" voting authority and "Discretionary" (DFND) authority.
Key Financial Metrics and Portfolio Composition
Portfolio Overview: The filing lists hundreds of individual positions. While the total aggregate market value is not explicitly summed in the text, the portfolio is heavily weighted toward large-cap U.S. equities and major Canadian financial and energy institutions.
Top U.S. Equity Holdings (by Value):
- Microsoft Corp: 1,528,451 shares valued at approximately $4.94 billion.
- Apple Inc: 711,908 shares valued at approximately $4.01 billion.
- Amazon.com Inc: 825,190 shares valued at approximately $247 million (Note: Multiple entries exist; aggregate value is higher).
- Johnson & Johnson: 307,348 shares valued at approximately $2.66 billion.
- Procter & Gamble Co: 312,384 shares valued at approximately $2.68 billion.
- Wells Fargo & Co: 100,261 shares valued at approximately $4.68 billion.
- Verizon Communications Inc: 181,439 shares valued at approximately $4.06 billion.
- AT&T Inc: 108,601 shares valued at approximately $4.41 billion.
Top Canadian Equity Holdings (by Value):
- Canadian Imperial Bank of Commerce (CIBC): 581,109 shares valued at approximately $4.99 billion.
- Bank of Nova Scotia (Scotiabank): 310,292 shares valued at approximately $4.38 billion.
- Royal Bank of Canada (RBC): 354,992 shares valued at approximately $3.34 billion.
- Enbridge Inc: 145,966 shares valued at approximately $3.74 billion.
- Suncor Energy Inc: 142,898 shares valued at approximately $5.71 billion.
- TransCanada Corp (TC Energy): 250,470 shares valued at approximately $5.39 billion.
- Toronto-Dominion Bank (TD): 13,955 shares valued at approximately $182 million (Self-holding).
Other Asset Classes: The filing includes significant holdings in Exchange Traded Funds (ETFs) such as SPDR S&P 500 ETF Trust, iShares MSCI Emerging Markets ETF, and VanEck Vectors Gold Miners ETF. It also lists various corporate bonds and preferred shares.
Material Changes and Portfolio Activity
Observation: As a Form 13F, this document provides a snapshot of holdings at the end of the quarter. It does not explicitly state the net change in value or share count compared to the prior quarter (September 30, 2021) within the text provided. However, the presence of specific share counts allows for external comparison.
Notable Activity Indicators:
- Technology Sector: Significant positions in Microsoft, Apple, Amazon, and NVIDIA suggest a continued strategic allocation to large-cap technology.
- Energy Sector: Substantial holdings in Suncor, TransCanada, and Devon Energy indicate a strong exposure to the energy sector, likely reflecting the bank's domestic Canadian focus.
- Financial Sector: Heavy concentration in major Canadian banks (CIBC, Scotiabank, RBC) and U.S. banks (Wells Fargo, JPMorgan, Bank of America) aligns with the institution's core business.
Guidance, Outlook, and Risks
Management Commentary: This filing is a regulatory disclosure and does not contain management commentary, forward-looking guidance, or strategic outlook statements.
Risks and Contingencies:
- Market Risk: The portfolio is heavily exposed to equity market volatility, particularly in the technology and financial sectors.
- Concentration Risk: Significant concentration in the Canadian financial and energy sectors creates specific regional and sectoral risks.
- Regulatory Risk: As a major bank, TD is subject to stringent regulatory capital requirements which may influence investment strategies.
Important Facts for Investors to Verify
- Total Portfolio Value: The filing lists individual position values but does not provide a total aggregate market value for the entire portfolio. Investors should sum the values to determine total exposure.
- Self-Holding: Verify the size of the bank's own holdings in Toronto-Dominion Bank stock (listed as 13,955 shares in one entry and 222,929 shares in another under different voting authority categories).
- Derivatives and Options: The filing includes entries for Call and Put options (e.g., on TELUS Corp, BlackBerry Ltd, BCE Inc). Investors should verify the net exposure created by these derivatives.
- Foreign Holdings: Confirm the total exposure to non-U.S. securities, particularly Canadian equities, which appear to constitute a significant portion of the portfolio's value.
- Comparison to Prior Quarter: Compare the share counts listed here against the Q3 2021 13F filing to identify specific buys and sells.