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One of the most important considerations in investing is selecting the right asset mix within
your portfolio. Assembling the best portfolio for you requires an understanding of your needs and the knowledge
to select the appropriate mutual funds. That's why TD Waterhouse provides clients with access to the TD Managed Assets Program (TD MAP*).
How does the TD Managed Assets Program (TD MAP) work?
Each "portfolio" is comprised of several, separate mutual funds which have been bundled together.
This allows you to benefit from the skills of individual fund managers and avoid the inconvenience of having to
purchase units of individual mutual funds every time you wish to add to your investments.
Depending on your investment needs, you'll be investing in a portfolio made up of selected funds
from TD Mutual Funds, TD Index Funds and/or some of Canada’s other leading funds.
Moreover, TD MAP is no-load, which means you pay no commission to purchase; however, early
redemption fees may apply. In addition, you may invest in these managed portfolios in your TD Waterhouse Self-Directed RSP. If you don't already have a Self-Directed RSP with TD Waterhouse Discount Brokerage, please apply online.
How does TD MAP contribute to successful investing?
TD Managed Assets Program (TD MAP) offers professionally managed
portfolios of mutual funds that are designed to provide a high level of potential returns relative to the risk
assumed. TD MAP utilizes state-of-the-art portfolio management and asset allocation techniques. Creating the
most efficient mix of funds requires a high level of expertise, extensive databases and sophisticated programs
– all used in co-ordination with strong fund analytics and modern portfolio theory principles.
TD MAP offers:
- A professionally designed asset mix and mutual fund portfolio based on an analysis of an investor’s objectives, time horizon and tolerance for risk.
- Ongoing professional portfolio management including automatic rebalancing to help the portfolios stay in line with their investment objectives.
- Customized semi-annual performance reporting with a personal rate of return and performance commentary from the Portfolio Manager.
What are the key advantages of TD MAP?
The disciplined, professional approach applied to TD MAP has one clear and primary goal - to
provide and maintain portfolios that have the optimal asset allocation, selection of funds and diversification
for an investor’s objectives, time horizon and tolerance for risk.
Strategic Asset Allocation
Asset allocation is the foundation of the TD MAP Portfolios
for a very important reason. When you invest, it's wise to
diversify your money across a number of asset categories -
that way you are not putting all your eggs in one basket.
When you diversify your investments you're well positioned
to take advantage of upturns in the market and better
protected through downturns.
TD MAP asset allocation begins with a comprehensive analysis of long-term return and volatility
relationships for a number of key money market, income and equity markets in Canada and around the world. Achieving
optimal weighting between these asset categories maximizes the potential returns at different levels of risk from
conservative to aggressive.
Fund Selection and Portfolio Suitability
Once the optimum balance of asset categories is determined for each TD MAP Portfolio, leading
mutual funds in each category are chosen using both quantitative and qualitative research.
The quantitative research uses advanced statistical analysis to rank and select proven
consistent performers on a risk-adjusted return basis.
The qualitative review involves interviews with the fund managers to assess their history
and track record and also to evaluate the fund mandate, risk and investment style.
The asset allocation and fund selection processes then come together to create a wide range of
distinct portfolios with multi-level diversification by investment styles, geographic regions, industry sectors
and market capitalization.
Professional Management
Each TD MAP Portfolio is overseen by a professional Portfolio Manager with access to the latest
in-depth market information and research. Their role is to monitor constantly changing markets and economic
conditions, maintain the focus of the portfolio and review the funds it holds.
- All portfolios are automatically rebalanced so that no matter how markets change, the portfolio
will maintain its original asset mix and stay on track based on its objectives.
- All portfolios are reviewed on a regular basis to ensure that the asset allocation and fund
selection continue to meet the portfolio objectives
- Individual fund managers are interviewed on a regular basis to ensure that their strategies remain consistent and to monitor their performance.
Comprehensive Performance Reports
TD MAP Performance Reports set a new standard for investor information. With easy-to-read
graphs that communicate information quickly and easily, investors will know exactly where they stand.
Semi-annual Performance Reports include:
- Personal rate of return since your initial investment for six-months, one-, three- and five-year periods (as applicable).
- Portfolio performance over the past six months.
- Percentage of the portfolio that is invested in each asset category and in each individual fund.
- Commentary from the Portfolio Manager reviewing portfolio performance and asset allocation, as well as market activity and the market outlook.
Competitive Fees
The TD Managed Assets Program offers you a host of features at a very competitive price. The
consolidated Management Expense Ratio (MER) for each managed portfolio includes the cost of determining the
appropriate asset mix, selecting funds, monitoring and rebalancing, showing enhanced reporting and providing
fund administration. This MER varies by portfolio and also includes the MER attached to the underlying funds.
How do I choose a TD MAP Portfolio?
It starts with the expert help of a TD Waterhouse FundSmart* Mutual Fund Specialist. These experienced investment representatives have a thorough understanding of the mutual fund market, and are supported
by immediate access to the latest independent research and the industry's most advanced analytical tools. When
you contact one of our Specialists, they will ask you a series of questions to help you assess your investment
needs. Your answers will be used to determine your Investor Profile, and will assist them in providing you with
information about the portfolio of funds that matches your investment objectives. Your portfolio could be comprised
of TD Mutual Funds, TD Index Funds and/or some of Canada’s other leading funds.
The Portfolios
The program consists of 15 portfolios, divided into 3 categories of 5 portfolios each:
TD Managed Portfolios
TD Managed Portfolios are built on the strength of TD Mutual Funds, one of the most diversified
and best-performing fund families in Canada. The portfolios are constructed out of a lineup that includes
domestic, international, income, sector and global funds. Morningstar®, Canada’s leading source for independent
investment analysis, has consistently ranked TD Mutual Funds as one of the best fund families.
In addition to benefiting from the strong management provided by TD Asset Management Inc.,
investors have access to some of the world’s top money managers. T. Rowe Price Associates, Inc., Jarislowsky
Fraser Limited and AllianceBernstein Canada, Inc. are among the money management
firms that provide expertise in international or specialized market segments for several TD Mutual Funds.
Minimum initial investment is $2,000. Monthly Purchase Plans are also available after your initial investment.
TD FundSmart Managed Portfolios
TD MAP’s professional Portfolio Managers have identified industry-leading fund companies and
incorporated their top-performing funds with the strength of TD Mutual Funds to create the TD FundSmart Managed
Portfolios.
Investors have access to TD Mutual Funds and some of Canada's other leading funds, including those offered by AGF Funds Inc., AIM Trimark Investments, Brandes Investment Partners, CI Investments, Fidelity Investments Canada Limited, and Franklin Templeton Investments.
A minimum initial investment of $2,000 gives you access to a tailored portfolio of funds.
Monthly Purchase Plans are also available after your initial investment.
TD Managed Index Portfolios
TD Managed Index Portfolios employ an indexing strategy to mirror the performance of a group of
market indices or benchmarks. The lower management fees and greater tax-efficiency of index funds may increase
the potential for higher returns.
The initial investment needed to put indexing to work for you is $2,000. Monthly Purchase Plans are also available after your initial investment.
How do I invest in a TD MAP Portfolio?
For more information, or to begin investing in a TD Managed Assets Program Portfolio, call a
TD Waterhouse FundSmart Mutual Fund Specialist at 1-800-461-3863.
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