Business Context and Reporting Period
Reporting Manager: The Toronto-Dominion Bank (TD Bank)
Filing Type: Form 13F-HR (Combination Report)
Reporting Period: Calendar Year Ended December 31, 2007
Filing Date: February 7, 2008
This filing represents a combination report, meaning a portion of the holdings for this manager are reported herein, while other portions are reported by separate managers (including TD Banknorth, N.A., TD Asset Management USA Inc., TD Asset Management Inc., TD Securities (USA) LLC, and TD Options, LLC). The report details equity securities and options held with investment discretion.
Key Financial Metrics
Total Portfolio Value: $27,327,858,000 (Reported as $27,327,858 in thousands)
Total Number of Holdings: 983 entries
Number of Other Included Managers: 2 (TD Securities, Inc. and TD Global Finance)
Asset Classes: Common Stock (COM), Call Options (CALL), Put Options (PUT), and Preferred Stock (PRN).
Note: As a Form 13F filing, this document reports holdings and fair market values. It does not contain revenue, profit, cash flow, margin, or debt metrics for the reporting manager itself.
Material Changes and Portfolio Composition
The filing provides a snapshot of holdings as of December 31, 2007. Without prior period data in this specific text, year-over-year changes cannot be calculated. However, the portfolio composition reveals significant concentration in specific sectors and strategies:
- Financial Sector Dominance: The portfolio holds massive positions in major Canadian and US banks, including Royal Bank of Canada (~$56.3M), Bank of Nova Scotia (~$44.8M), Bank of Montreal (~$21.1M), and Toronto-Dominion Bank (~$3.1M).
- Energy and Resources: Significant exposure to energy and mining companies such as Talisman Energy (~$9.8M), Nexen Inc (~$5.8M), Suncor Energy (~$4.6M), and Barrick Gold (~$7.1M).
- Options Activity: The manager maintains substantial positions in both Call and Put options across major equities (e.g., Ford Motor Co, Intel Corp, Pfizer Inc, Microsoft Corp), indicating active hedging or speculative strategies.
- Technology and Consumer: Notable holdings include Research In Motion Ltd (~$12.8M), Shaw Communications Inc (~$6.1M), and Wal-Mart Stores Inc (~$156k).
Guidance, Outlook, and Risks
Management Commentary: This filing contains no narrative management commentary, forward-looking guidance, or outlook statements. It is a statutory disclosure of holdings.
Risks and Contingencies:
- Concentration Risk: The portfolio shows high concentration in the financial sector and Canadian resource companies.
- Derivatives Risk: The presence of significant Put and Call option positions introduces leverage and volatility risk.
- Market Timing: The data reflects market values as of December 31, 2007, immediately preceding the global financial crisis acceleration in 2008.
Important Facts for Investor Verification
- Scope of Report: Verify that this is a "Combination Report." The total value of $27.3 billion does not represent the entire asset base of The Toronto-Dominion Bank, but only the specific holdings reported by this manager and the two included managers (TD Securities, Inc. and TD Global Finance).
- Valuation Date: All fair market values are as of December 31, 2007. Subsequent market movements are not reflected.
- Discretionary Authority: The report confirms "Sole" or "Shared" investment discretion for the listed securities, indicating active management decisions rather than passive custody.
- Options Exposure: Investors should note the significant volume of options (Calls and Puts) held on major blue-chip stocks, which may indicate hedging strategies against market downturns or directional bets.