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 March 31, 2008
Filing Date: May 12, 2008
This report discloses the equity holdings of The Toronto-Dominion Bank and its affiliated managers. It is a combination report, meaning it covers a portion of the manager's holdings, with other portions reported by affiliated entities including TD Banknorth, N.A., TD Asset Management USA Inc., TD Asset Management Inc., TD Securities (USA) LLC, and TD Options, LLC.
Key Financial Metrics
Note: As a Form 13F filing, this document reports portfolio holdings and does not contain the reporting manager's internal financial statements (revenue, profit, cash flow, or debt).
- Total Portfolio Value: $25,615,744,000 (Reported as $25,615,744 in thousands)
- Total Number of Holdings: 1,368 entries
- Number of Included Managers: 2 (TD Securities, Inc. and TD Global Finance)
- Asset Classes: Primarily common stock, with significant positions in call and put options.
Material Changes and Portfolio Composition
The filing provides a snapshot of holdings as of March 31, 2008. While specific quarter-over-quarter changes are not explicitly calculated in the text, the portfolio composition reveals the following characteristics:
- Heavy Domestic (Canadian) Exposure: The portfolio is heavily weighted toward Canadian financial and energy sectors. Significant positions include Royal Bank of Canada ($55.9M), Bank of Nova Scotia ($45.3M), Bank of Montreal ($22.1M), and Enbridge Inc. ($11.2M).
- Energy and Materials Focus: Substantial holdings in energy and mining companies, including Suncor Energy ($4.7M), Talisman Energy ($10.0M), Potash Corp of Saskatchewan ($3.5M), and Barrick Gold ($7.2M).
- Derivatives Usage: The manager utilizes options extensively for hedging or speculation. Notable option positions include puts on JPMorgan Chase ($304,000), Home Depot ($250,000), and calls on ICICI Bank ($250,000).
- US Market Exposure: Significant positions in major US corporations such as Microsoft ($280,640), Johnson & Johnson ($445,712), and Procter & Gamble ($336,253).
Guidance, Outlook, and Risks
Guidance and Outlook: Form 13F filings are historical disclosures and do not contain forward-looking guidance, earnings forecasts, or management commentary regarding future performance.
Risks and Contingencies:
- Concentration Risk: The portfolio shows high concentration in the Canadian banking sector and the global energy/mining sectors, exposing the holdings to sector-specific volatility.
- Derivative Risk: The presence of numerous call and put options introduces leverage and market timing risks.
- Market Context: The reporting date (March 31, 2008) coincides with the onset of the global financial crisis. Holdings in financial institutions (e.g., Bear Stearns, Lehman Brothers, Wachovia) and energy trusts reflect the market conditions of that specific period.
Key Facts for Investor Verification
- Portfolio Size: Verify the total reported value of approximately $25.6 billion against the sum of individual holdings to ensure data integrity.
- Affiliated Managers: Confirm that holdings reported by TD Securities, Inc. and TD Global Finance are consistent with the "Combination Report" status to avoid double-counting or missing data.
- Option Positions: Review the specific strike prices and expiration dates (not provided in this summary text) for the significant option positions in JPMorgan Chase, Home Depot, and Pfizer to understand the hedging strategy.
- Top Holdings: Verify the valuation of the largest positions, specifically Royal Bank of Canada ($55.9M) and Bank of Nova Scotia ($45.3M), as these represent a significant portion of the reported equity value.
- Historical Context: Acknowledge that this data reflects the portfolio status prior to the full impact of the 2008 financial crisis; subsequent filings would show significant changes in financial sector holdings.