Changes are being made to risk ratings, fund names, and management fee disclosures
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TD Asset Management (TDAM) has announced numerous changes affecting various funds in its lineup.
On or about July 27, new risk ratings will be applied to certain funds based on a new methodology required by the Canadian Securities Administrators (CSA). Based on the CSA’s methodology and rating system, the following changes will be made:
| TD Mutual Fund | Previous Risk Rating | New Risk Rating |
| Risk Rating Decreases | ||
| TD Corporate Bond Plus Fund | Low to Medium | Low |
| TD U.S. Corporate Bond Fund | Low to Medium | Low |
| TD Global Low Volatility Fund | Medium | Low to Medium |
| TD Global Low Volatility Class | Medium | Low to Medium |
| Risk Rating Increases | ||
| TD Canadian Equity Fund | Medium | Medium to High |
| TD Canadian Equity Class | Medium | Medium to High |
| TD High Yield Bond Fund | Low to Medium | Medium |
Around the same time, the names of several TD mutual funds will be changed, with no associated change to objectives or strategies:
| Current Name | New Name |
| TD Global Bond Fund | TD Global Core Plus Bond Fund |
| TD Target Return Conservative Fund | TD Global Conservative Opportunities Fund |
| TD Target Return Balanced Fund | TD Global Balanced Opportunities Fund |
Finally, TDAM also announced a change in the management fee disclosures for all series of all funds in the TD mutual funds simplified prospectus.
“Currently, the annual management fee rate for each series of each fund is expressed as a maximum annual rate in the simplified prospectus,” TDAM said in a statement. “Effective on or about July 27, 2017, the simplified prospectus will disclose a specified annual management fee rate. Going forward, where TDAM chooses to charge a management fee below the specified annual rate, a waived management fee will be stated in the Financial Reports of the applicable fund.”
The changes in management fee disclosures include certain series of money market funds, fixed income funds, balanced funds, managed pools, and corporate-class funds. The new annual management fees to be disclosed in the simplified prospectus are five to 75 basis points lower compared to the annual maximum annual management fees currently disclosed.
With respect to fund series affected by the disclosure change, no significant difference in the annual management fees charged to the funds is expected.
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