TD Asset Management
Profile
ACTIVE FUNDAMENTAL
TAA
TACTICAL ASSET ALLOCATION
TDAM Target Return
Fund – Institutional Class
Fund Statistics
Investment Objective
The TDAM Target Return Fund seeks to achieve a total return that exceeds the rate of
return of the 1-month Treasury bill by 300 basis points (3%) on an annualized basis
over a 5-year period regardless of market conditions.
Ticker
TDTFX
Inception Date
March 21, 2013
Cut Off Time
4:00 PM EST
Investment Philosophy
Sales Load
None
Minimum Investment
$1,000,000*
Benchmark Description
Citigroup 1-month
Treasury Bill Index
+ 3%, annualized
Distribution
Quarterly
The Fund seeks to earn its target return over a 5-year period, which is a full market
cycle, because investment returns tend to fluctuate over shorter time periods as
market conditions vary. The Fund expects to produce less volatile returns over time
than have been historically associated with equity markets. The Investment Manager
believes that a target return objective and a focus on volatility should better align the
Fund with investors’ expectations.
*The minimum account balance and initial purchase
requirement is set by the financial intermediary where
you purchase and hold your shares. It may be lower than
the amount indicated here.
Investment Strategy
The Investment Manager seeks to achieve the fundamental investment objective of
the Fund by investing in or providing exposure to one or more asset classes of various
types, including but not limited to: money market, debt and debt-like instruments,
preferred shares, exchange-traded funds and/or equity and equity-like instruments of
U.S. and/or international markets. The Investment Manager may dynamically shift
between any asset classes and markets and may use defensive strategies and
derivatives to modify the return and risk profile of the Fund. The Fund may have
significant exposure to money market securities for long periods of time.
The Fund’s key attributes are:
■ Defined returns objective. While investment returns fluctuate over the
short-term, the Fund seeks to generate its target return over a 5-year period.
■ Managed volatility. The Investment Manager seeks to construct a portfolio with
less return volatility than that of equity markets.
■ Experience. TD Asset Management has been one of the leading providers of
investment solutions to institutional investors for more than 15 years.
Investment Process
The Investment Manager will generally make investment decisions for the Fund with a
focus on achieving the Fund’s target return while managing downside risk. Pursuant
to the Fund’s investment philosophy, the Investment Manager will:
FUND FACTS (INSTITUTIONAL CLASS): ■ Inception Date: March 21, 2013
Asset Class: Tactical asset allocation ■ Management Style: Active Fundamental
Benchmark: Citigroup 1-month Treasury Bill Index + 3%, annualized
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TD Asset Management
Profile
ACTIVE FUNDAMENTAL
TAA
■ allocate the Fund’s assets across the various asset classes based on an assessment
of the associated risk, the investment opportunity presented and the prevailing
market conditions within the asset classes in the U.S. and around the world.
■ consider the macro-economic environment.
■ estimate the potential annual return and correlations of various asset classes.
■ attempt to construct the Fund’s portfolio using a combination of asset classes that,
in the Investment Manager’s view, have the greatest chance of achieving the
targeted return while managing overall portfolio risk.
The Investment Manager may adjust the Fund’s portfolio to take advantage of
valuation anomalies and changes to the macro-economic environment.
Guidelines
■ The Fund may invest in equity securities and fixed income instruments without
limit. There are no restrictions on the Fund with regard to geography, currency,
market capitalization, credit quality or maturity of individual issues or the portfolio
as a whole.
■ The Fund may invest in equity securities of both U.S. and foreign companies
including equity securities of emerging market issuers. In addition, the Fund may
invest in investment grade and/or below investment grade fixed income
instruments without limit.
■ The Fund may also invest in other mutual funds and exchange-traded funds to gain
exposure to other asset classes.
■ Securities may be denominated in both U.S. dollars and foreign currencies.
Lead Managers
Anish Chopra, CA, CFA, Portfolio Manager
Anish joined TD Asset Management in 1998. He is lead portfolio manager of
the Canadian Value and Target Return strategies for both TD Mutual Funds
and TD Waterhouse Private Investment Counsel. Anish is also a member of the
TD Wealth Asset Allocation Committee. He has over 11 years of experience managing
proprietary funds within TDAM, with knowledge of Canadian, U.S. and global
equities as well as numerous absolute return strategies.
Prior to joining TDAM, Anish worked as a member of TD Securities’ mergers and
acquisitions group. Anish holds a Masters of Accounting degree (Gold Medalist) from
the University of Waterloo. He is a Chartered Accountant, a CFA charterholder,
and he holds the Chartered Alternative Investment Analyst designation. Anish is
also a Chartered Business Valuator (Canadian Gold Medalist) and was the inaugural
recipient of the Canadian Institute of Chartered Business Valuators “Top Chartered
Business Valuator Under 40” award.
Jonathan Shui, CFA, Portfolio Manager
Jonathan joined TD Asset Management in June 2003. He is currently the
co-manager of the Target Return funds for TD Mutual Funds and TD Waterhouse
Private Investment Counsel. Previously, Jonathan supported the Target Return,
Canadian Value and Hedge Fund mandates through fundamental analysis and
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TD Asset Management
Profile
ACTIVE FUNDAMENTAL
TAA
portfolio management responsibilities. Jonathan was also the primary analyst
covering the technology and industrials sectors of the Canadian equities market.
Jonathan graduated from the University of Waterloo in 2003 with a B.A. Sc. degree
in Mechanical Engineering along with a Minor in Economics. He was awarded the
CFA designation in 2006 and completed the Columbia Business School Executive
Education Program in Value Investing in 2007.
Risk Management
Risk management is inherent in the portfolio architecture of this Fund. Investors
benefit from:
■ Independent monitoring. An independent 25-plus member Risk Management
team oversees and monitors portfolio guidelines and risk controls on a daily basis.
■ A risk management culture. TD Asset Management fosters a risk
management culture that increases personal accountability and maintains the
integrity of our investment management and product management processes.
About TD Asset Management
TD Asset Management is a North American investment firm offering progressive
investment solutions to institutional and individual investors. For over two decades,
we have developed an integrated investment management platform that spans
active, quantitative and passive portfolio management as well as customizable
services such as currency overlay and hedging, bond overlay, cash equitization, asset
mix rebalancing and liability driven investment solutions.
Fund Performance
Click here for performance information to the most recent month-end
or visit us at www.tdamusa.com
Before investing you should carefully read the prospectus and/or the summary prospectus and carefully consider the investment objectives, risks, charges and expenses of the Fund.
The prospectus and the summary prospectus contain this and other information about the Fund and may be obtained by calling 1-866-416-4031.
For performance information current to the most recent month-end, please visit www.tdamusa.com.
Bonds and bond funds are subject to interest rate risk and will decline in value as interest rates rise. High yield bonds involve greater risks of default or downgrade and are more volatile than
investment grade securities, due to the speculative nature of their investments. In addition to the normal risks associated with investing, international investments may involve risk of capital loss
from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles or from social, economic or political instability in other nations. Emerging markets involve
heightened risks related to the same factors as well as increased volatility and lower trading volume. Investments in mid-size and smaller companies typically exhibit higher volatility. The Fund may
invest in derivatives, which are often more volatile than other investments and may magnify the Fund’s gains or losses. Not FDIC Insured • May Lose Value • No Bank Guarantee.
The Fund is a series of TD Asset Management USA Funds Inc. SEI Investments Distribution Co., which is not affiliated with TD Asset Management, acts as distributor of shares of the Fund.
TD Asset Management operates in the United States as TDAM USA Inc. and in Canada as TD Asset Management Inc., each a wholly-owned subsidiary of the Toronto-Dominion Bank.
All trade-marks are the property of their respective owners. ® The TD logo and other trade-marks are the property of The Toronto-Dominion Bank or a wholly-owned subsidiary, in Canada and/or
other countries.
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