SEC Filing Summary: Form 13F-HR
Business Context and Reporting Period
Reporting Manager: The Toronto-Dominion Bank (TD Bank)
Filing Type: Form 13F-HR (Combination Report)
Reporting Period: Quarter ended September 30, 2006
Submission Date: November 6, 2006
Scope: This report covers holdings managed by TD Bank and includes data from two other included managers (TD Securities, Inc. and TD Global Finance). It represents a combination report where portions of holdings are reported by other managers.
Key Financial Metrics
Total Portfolio Value: $24,175,736,000 (Reported as $24,175,736 in thousands)
Total Number of Holdings: 1,755 entries
Asset Classes: Primarily equity securities (Common Stock), with significant positions in options (Calls and Puts) and preferred shares.
Geographic Focus: Heavy concentration in Canadian financials, energy, and materials, alongside major U.S. technology, healthcare, and consumer staples.
Material Holdings and Portfolio Composition
The portfolio demonstrates a distinct bias toward the Canadian domestic market, particularly the banking and energy sectors, while maintaining diversified exposure to large-cap U.S. equities.
- Top Canadian Holdings:
- Banking: Royal Bank of Canada (~58.3M shares), Bank of Nova Scotia (~45.7M shares), Bank of Montreal (~21.2M shares), and Toronto-Dominion Bank (~3.4M shares).
- Energy & Materials: TransCanada Corp (~17.2M shares), Enbridge Inc. (~11.8M shares), Petro-Canada (~5.5M shares), Suncor Energy (~4.4M shares), Barrick Gold (~7.6M shares), and Goldcorp (~8.9M shares).
- Telecom & Media: BCE Inc. (~34.1M shares), Rogers Communications (~2.5M shares), and Shaw Communications (~1.9M shares).
- Top U.S. Holdings:
- Technology: Microsoft Corp. (~2.5M shares), Intel Corp. (~3.2M shares), Cisco Systems (~875K shares), and Oracle Corp. (~2.1M shares).
- Healthcare: Pfizer Inc. (~1.8M shares), Johnson & Johnson (~653K shares), and Merck & Co. (~499K shares).
- Consumer & Finance: Wal-Mart Stores (~224K shares), McDonald's Corp. (~888K shares), Citigroup Inc. (~896K shares), and General Motors Corp. (~1.5M shares).
- Derivatives Activity: Significant use of options for hedging or speculation, particularly on major holdings like Microsoft, Pfizer, Citigroup, and Canadian energy stocks (e.g., TransCanada, Suncor).
Guidance, Outlook, and Risks
Management Commentary: As a statutory 13F filing, this document contains no management commentary, forward-looking guidance, or strategic outlook. It is a disclosure of holdings only.
Risks and Contingencies: The filing does not disclose specific risk factors. However, the portfolio composition indicates exposure to:
- Concentration Risk: High exposure to the Canadian financial sector and commodity prices (oil, gold, potash).
- Market Risk: Significant positions in cyclical industries (automotive, energy, materials).
- Derivative Risk: Extensive use of put and call options introduces leverage and volatility risk.
Investor Verification Checklist
- Verify the total aggregate value of $24.18 billion against the sum of individual holdings to ensure no reporting errors in the combination report.
- Confirm the specific breakdown of "Shared" vs. "Sole" voting authority for the largest Canadian banking positions to understand control dynamics.
- Review the specific strike prices and expiration dates of the large option positions (e.g., Pfizer, Microsoft, TransCanada) to assess potential hedging strategies or directional bets.
- Check for any subsequent amendments or 13F filings for the following quarter to track changes in the heavy energy and materials exposure.
- Validate the inclusion of the two other managers (TD Securities, Inc. and TD Global Finance) to ensure the full scope of the institution's U.S. equity exposure is captured.