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 June 30, 2007
Filing Date: August 9, 2007
This filing represents a combination report, meaning a portion of the holdings for this manager are reported herein, while other portions are reported by affiliated managers (including TD Banknorth N.A., TD Asset Management USA Inc., TD Securities (USA) LLC, and others). The report covers 1,494 distinct information table entries.
Key Financial Metrics
Total Reported Value: $26,424,917,000 (approx. $26.4 billion)
Number of Holdings: 1,494 entries
Asset Classes: The portfolio consists primarily of common stocks (equities), with significant positions in call and put options, and preferred shares.
Top Sector Exposures (Based on Holdings):
- Financials: Significant holdings in major Canadian and US banks (e.g., Royal Bank of Canada, Bank of Nova Scotia, Bank of Montreal, Citigroup, Bank of America).
- Energy & Materials: Heavy concentration in Canadian energy and mining firms (e.g., Suncor Energy, Talisman Energy, Teck Cominco, Barrick Gold, Goldcorp).
- Technology: Notable positions in Intel, Microsoft, Cisco Systems, and IBM.
- Consumer Staples/Discretionary: Holdings in Wal-Mart, Procter & Gamble, and McDonald's.
Material Changes and Portfolio Composition
Derivatives Activity: The filing indicates substantial activity in options markets. Significant call and put positions are held for major constituents including Intel, Microsoft, Wal-Mart, Pfizer, and General Electric. This suggests active hedging or speculative strategies alongside long-term equity holdings.
Concentration Risk: The portfolio shows high concentration in specific Canadian blue-chip stocks. For example, the bank holds massive positions in its own stock (Toronto-Dominion Bank), Royal Bank of Canada, and Bank of Nova Scotia, with values in the hundreds of millions of dollars for single entries.
Comparison to Prior Period: As this is a snapshot of holdings as of June 30, 2007, the filing text does not provide a direct numerical comparison to the prior quarter's total value or specific changes in share counts for the aggregate portfolio. Investors must compare this list against the March 31, 2007 filing to determine net buying or selling activity.
Guidance, Outlook, and Risks
Management Commentary: Form 13F filings are statutory disclosures of holdings and do not contain management commentary, earnings guidance, or forward-looking statements regarding the bank's own operations.
Risks and Contingencies:
- Market Risk: The portfolio is heavily weighted toward large-cap equities, exposing the manager to broad market volatility.
- Derivative Risk: The extensive use of call and put options introduces leverage and timing risk.
- Concentration Risk: Significant exposure to the Canadian financial and resource sectors creates correlation risk with the Canadian economy and commodity prices.
Key Facts for Investor Verification
- Total AUM Reported: Verify the total value of $26.4 billion against the bank's total assets to understand the proportion of assets managed under this specific 13F reporting umbrella.
- Self-Holding: Note the significant position held in Toronto-Dominion Bank stock itself (approx. $2.5 billion+ across various entries), which may reflect internal treasury management or proprietary trading.
- Option Exposure: Investigate the net delta of the large option positions (e.g., Intel, Microsoft, Pfizer) to determine if the bank is net bullish or bearish on these specific names.
- Affiliate Reporting: Confirm that the "Combination Report" status means the full picture of TD's US holdings requires aggregating data from the listed "Other Included Managers" (e.g., TD Securities, TD Asset Management).
- Commodity Correlation: Assess the impact of commodity price fluctuations on the large mining and energy holdings (Goldcorp, Barrick, Suncor, Talisman).