Business Context and Reporting Period
Reporting Manager: The Toronto-Dominion Bank (TD Bank)
Filing Type: Form 13F-HR (Combination Report)
Reporting Period: Quarter ended June 30, 2011
Submission Date: August 12, 2011
Scope: This report covers a portion of the manager's holdings, with other portions reported by affiliated managers including TD Asset Management USA Inc., TD Asset Management Inc., TD Securities (USA) LLC, TD Securities Inc., and TD Global Finance.
Key Financial Metrics
Total Reported Value: $22,102,048,000 (approx. $22.1 billion)
Total Number of Holdings: 1,166 entries
Asset Classes: Common stocks, preferred stocks, call options, put options, and exchange-traded funds (ETFs).
Investment Discretion: Mix of Sole and Shared discretion across various holdings.
Material Changes and Portfolio Composition
Top Sector Concentrations: The portfolio is heavily weighted toward Canadian financial institutions, energy, and materials (mining) sectors, alongside significant exposure to large-cap U.S. equities.
Notable Large Positions (by reported value):
- Royal Bank of Canada: ~$51.8 million (Common) + significant options
- Bank of Nova Scotia: ~$43.0 million (Common) + significant options
- Bank of Montreal: ~$21.9 million (Common) + significant options
- Canadian Imperial Bank of Commerce: ~$17.6 million (Common) + significant options
- Research In Motion (RIM): ~$4.8 million (Common) + significant options
- Enbridge Inc.: ~$13.8 million (Common) + significant options
- Encana Corp: ~$8.0 million (Common) + significant options
- Goldcorp Inc.: ~$7.9 million (Common) + significant options
- Yamana Gold Inc.: ~$7.3 million (Common) + significant options
- Canadian Natural Resources: ~$10.6 million (Common) + significant options
Derivatives Activity: The filing indicates extensive use of call and put options on major Canadian equities (e.g., Royal Bank, TD Bank, Barrick Gold, Potash Corp) and U.S. indices (S&P 500), suggesting active hedging or leverage strategies.
Guidance, Outlook, and Risks
Management Commentary: Not applicable. Form 13F filings are regulatory disclosures of holdings and do not contain management commentary, forward-looking guidance, or strategic outlooks.
Risks and Contingencies: The filing does not disclose specific risk factors. However, the concentration in Canadian financials and resource sectors implies exposure to commodity price volatility and North American banking regulations. The significant presence of short positions (puts) on indices and individual stocks indicates active risk management or bearish hedging views on specific assets.
Important Facts for Investor Verification
- Partial Reporting: This is a "Combination Report." The $22.1 billion figure represents only the holdings reported by TD Bank directly; the total assets under management for the broader TD group are significantly higher and reported by the other listed managers.
- Options Exposure: Investors should verify the net exposure of the portfolio by analyzing the call and put option positions, which are substantial for many top holdings (e.g., Royal Bank of Canada, Barrick Gold, Potash Corp).
- Canadian Bias: Despite being a U.S. filing, the portfolio is heavily concentrated in Canadian equities, particularly the "Big Five" banks and major resource companies.
- Valuation Timing: Values are based on market prices as of June 30, 2011, and do not reflect subsequent market movements.