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: Calendar Year Ended December 31, 2006
Filing Date: February 6, 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 separate institutional investment managers (including TD Securities, Inc. and TD Global Finance). The report covers 1,658 distinct information table entries.
Key Financial Metrics
Total Portfolio Value: $26,053,172,000 (Reported as $26,053,172 in thousands)
Number of Holdings: 1,658 entries
Asset Classes: The portfolio consists primarily of common equity (shares), corporate bonds (convertible bonds/notes), and equity options (calls and puts).
Top Sector Exposure (Based on Holdings Volume):
- Financials: Significant holdings in major Canadian and US banks (Royal Bank of Canada, Bank of Nova Scotia, Bank of Montreal, Citigroup, Bank of America).
- Energy & Resources: Heavy concentration in Canadian energy and mining firms (Suncor Energy, EnCana, Barrick Gold, Teck Cominco, Potash Corp).
- Technology: Large positions in Microsoft, Intel, Cisco Systems, and Hewlett-Packard.
- Consumer Staples: Notable holdings in Procter & Gamble, Coca-Cola, and PepsiCo.
Material Changes and Portfolio Composition
Comparison to Prior Period: The filing text provided does not contain data for the prior quarter (September 30, 2006); therefore, specific material changes in position size or value cannot be calculated from this document alone.
Derivatives Activity: The portfolio includes substantial activity in options. For example, the manager holds significant call and put positions on major indices and individual equities such as Microsoft, Intel, and Pfizer, indicating active hedging or speculative strategies alongside long equity positions.
Self-Holdings: The bank holds a significant position in its own stock (Toronto-Dominion Bank), including both common shares and options.
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 outlooks.
Risks and Contingencies:
- Concentration Risk: The portfolio shows high concentration in the Canadian financial and resource sectors, exposing the portfolio to commodity price fluctuations and Canadian economic conditions.
- Market Risk: Significant exposure to large-cap US technology and financial stocks.
- Derivative Risk: The presence of numerous put and call options introduces leverage and volatility risk dependent on market movements.
Investor Verification Checklist
- Verify Total AUM: Confirm the $26.05 billion figure represents the total assets under management for the specific reporting entities included in this combination report.
- Check Other Managers: Review filings from the listed "Other Included Managers" (e.g., TD Securities, Inc., TD Global Finance) to obtain a complete picture of the bank's total investment activity.
- Assess Option Exposure: Analyze the specific strike prices and expiration dates of the reported options (not listed in this summary) to understand the net delta and risk profile.
- Confirm Voting Authority: Note that the report distinguishes between "Sole," "Shared," and "None" voting authority; verify if shared authority impacts corporate governance influence.