TDAM announces changes to its cash flow series, launches new TD Mutual s series options, and makes changes to certain TD Mutual s Questions & Answers In the coming weeks, TD Asset Management Inc. (TDAM) will continue to expand its product offering and make changes to certain TD Mutual s. These launches are intended to provide investors with a broader range of portfolio diversification choices and help strengthen TDAM's existing line-up of investment solutions. Click on the links below for answers to questions you may potentially be asked. Important notice regarding fee-based extensions: For FP Fee-Based accounts, please call the Wealth Support Desk (WSD) at 1-866-646-7888 to place either a purchase or a switch trade. Please note that due to a pending technology upgrade, those trades cannot be placed on OMT directly. Cash flow series name changes and extensions Why is TDAM changing the names of its cash flow lineup? What are the key changes? Which cash flow series options are being impacted? Will target annualized distribution rates change? Will clients be notified of these changes? Will the investment objectives change for the impacted funds? Addition of USD purchase options for certain of existing TD Mutual s Why is TDAM launching additional USD purchase options? What are the new USD purchase options? Launch of for TD Comfort s Why is TDAM launching for TD Comfort s? Which TD Comfort s are being extended? Investment Minimum Changes Which funds are lowering their minimum initial investments? Which funds are eliminating the minimum subsequent purchase amount and minimum PAC/SIP amount? Why is TDAM making these investment minimum changes? TD Entertainment and Communication name change Why is the name changing? Has the fund's investment objective or strategies changed? Will clients be notified of the name change? Risk rating changes on certain TD Mutual s Which TD Mutual s are affected by a risk rating change? Why is the risk rating changing on these funds? Will clients be notified of the risk rating changes? 1
Cash flow series name changes and extensions Why is TDAM changing the names of its cash flow lineup? TDAM is changing the names of its cash flow series options to provide better transparency and make it easier to use the series. What are the key changes? On or about July 26, 2018, TDAM is renaming its existing suite of cash flow series options. This change will include the target annualized distribution rate in the series name, either or depending on the fund. Details are as follows: Cash flow series funds that paid a target annualized distribution rate of are being renamed T5 Series, H5 Series, and FT5 Series (formerly S-Series) Cash flow series funds that paid a target annualized distribution rate of are being renamed T8 Series, H8 Series, and FT8 Series (formerly S-Series) Cash flow series funds that paid a target annualized distribution rate of 6% or 7% are having their target annualized distribution rate increased to and being renamed T8 Series, H8 Series, and FT8 Series Additionally, on or about August 16, 2018, TDAM will launch new FT5 Series extensions to provide two payout rate options ( and ) on select existing fee-based cash flow series. Which cash flow series options are being impacted? The table below denotes the cash flow series name changes as well as the new series extensions: Current New Rebranded Cash Flow Series Target Formerly Formerly T- Formerly S- Annualized H-Series Series Series Rate H5 H8 T5 T8 FT5 FT8 Fixed Income TD Income Advantage TD Global Income TD Global Core Plus Bond TD Global Unconstrained Bond TD High Yield Bond Balanced 7% TD Dividend Income 6% TD Monthly Income 6% TD Diversified Monthly Income 6% TD U.S. Monthly Income 6% TD U.S. Monthly Income - C$ 6% TD Tactical Monthly Income 2
7% TD Strategic Yield Canadian Equity TD Canadian Low Volatility TD Dividend Growth U.S. Equity TD U.S. Low Volatility TD U.S. Low Volatility Currency Neutral TD North American Dividend TD U.S. Dividend Growth TD U.S. Risk Managed Equity Global Equity TD Global Risk Managed Equity TD Global Low Volatility TD Emerging Markets Low Volatility Epoch s Epoch Global Shareholder Yield Epoch Global Shareholder Yield Currency Neutral - X - X - X Epoch U.S. Shareholder Yield Retirement s TD Retirement Conservative TD Retirement Balanced TD US$ Retirement TD Advantage Investment s TD Advantage Balanced Income TD Advantage Balanced TD Advantage Balanced Growth Will target annualized distribution rates change? Certain funds that paid a target annualized distribution rate of 6% or 7% are having their target annualized distribution rate increased to and being renamed T8 Series, H8 Series, FT8 Series, as applicable. The target annualized distribution rate for the balanced funds below will increase to, beginning with the July 31, 2018 distributions. Name Current Target Annualized Rate Revised Target Annualized Rate after July 30 3
TD Dividend Income 7% TD Monthly Income 6% TD Diversified Monthly Income 6% TD U.S. Monthly Income 6% TD U.S. Monthly Income - C$ 6% TD Tactical Monthly Income 6% TD Strategic Yield 7% Will clients be notified of these changes? No, clients will not be directly notified of the cash flow series name changes and extensions. With the name change, it may be easier and more intuitive for clients to determine their target annualized distribution rate. Will the investment objectives change for the impacted funds? The fundamental investment objectives for the impacted funds will not change. They remain a professionally managed and potentially tax efficient cash flow option for investors. Addition of USD purchase options on certain of existing TD Mutual s Why is TDAM launching additional USD purchase options? As investor demand for U.S. dollar funds grow, TDAM will add new USD purchase options on certain of existing TD Mutual s. This can help to provide advisors and planners with the breadth of investment solutions required to help meet their client needs. What are the new USD purchase options? The table below denotes the 14 new USD purchase options available for investors on or about August 16, 2018. New USD Purchase Options Fixed Income TD Global Core Plus Bond TD High Yield US Equity TD North American Dividend TD US Small Cap Equity Global Equity TD Global Risk Managed Equity TD Global Low Volatility Epoch Global Equity Epoch International Equity TD International Growth TD Emerging Markets Low Volatility TD Emerging Markets Sector s TD Global Entertainment & Communications TD Science & Technology Series 4
TD Health Sciences Launch of for TD Comfort s Why is TDAM launching for TD Comfort s? TDAM will launch for TD Comfort s to allow for in-kind transfers of Investor Series TD Comfort s to a fee-based platform without triggering capital gains for clients holding assets in non-registered accounts. Consolidating assets in a Wealth fee-based account may also result in potentially lower fees for clients. Which TD Comfort s are being extended? On or about August 16, 2018, TDAM will launch on all 6 of the TD Comfort s. TD Comfort s TD Comfort Conservative Income TD Comfort Balanced Income TD Comfort Balanced TD Comfort Balanced Growth TD Comfort Growth TD Comfort Aggressive Growth New Series Investment Minimum Changes Which funds are lowering their minimum initial investments? Effective on or about July 30, 2018, the minimum initial investment will be lowered for the following TD Mutual s as detailed: TD Income Advantage Series Current Minimum Initial Investment New Minimum Initial Investment TD U.S. Equity TD Advantage Balanced Income $5,000 $2,000 TD Advantage Balanced TD Advantage Balanced Growth TD Advantage Growth TD Advantage Aggressive Growth Investor, Advisor, and D-Series $2,000 $1,000 5
Which funds are eliminating the minimum subsequent purchase amount and minimum PAC/SIP amount? Effective on or about July 30, 2018 excluding all TD Managed Assets Program s the minimum subsequent purchase amount and minimum Pre-authorized Contribution/Systematic Investment Plan amount for all series of all TD Mutual funds will be eliminated. Why is TDAM making these investment minimum changes? TDAM is making these investment minimum changes to help make these funds more affordable and accessible for investors. There are no changes to the existing objectives, strategies or management of the funds. TD Entertainment and Communication name change Why is the name changing? Effective on or about July 26, 2018, TDAM is changing the name of the TD Entertainment & Communications to TD Global Entertainment & Communications. TDAM is changing the name of the TD Entertainment & Communications to better reflect the underlying geographic asset allocation of the fund. The investment objectives and investment strategies of the fund will remain the same. Has the fund's investment objective or strategies changed? There are no changes to the existing objectives, strategies or management of the fund. Will clients be notified of the name change? No, clients will not be directly notified of the name change. Risk rating changes to certain TD Mutual s Which TD Mutual s are affected by a risk rating change? On or about July 26, 2018, the following TD Mutual s are being affected by a risk rating change as indicated below. TD Mutual Previous Risk Rating New Risk Rating Risk Rating Decreases TD Fixed Income Pool Low to Medium Low TD U.S. Mid-Cap Growth Medium to High Medium TD U.S. Mid-Cap Growth Class Medium to High Medium TD Emerging Markets Low Volatility Medium to High Medium TD Asian Growth High Medium to High TD Emerging Markets High Medium to High TD Emerging Markets Class High Medium to High TD Global Entertainment & Communications High Medium to High TD Science & Technology High Medium to High TD Health Sciences High Medium to High 6
Why is the risk rating changing on these funds? The risk rating changes are based on the methodology mandated by the Canadian Securities Administrators (the CSA) and the related annual review by TDAM to determine the risk level of publicly-offered mutual funds. The changes are not a result of any modifications made to the investment objectives, strategies or management of the s. A summary of the CSA's risk classification methodology and the investment objectives and strategies can be found in the applicable TD Mutual simplified prospectus available at tdassetmanagement.com. Will clients be notified of the risk rating changes? No, clients will not be directly notified of the risk rating changes. Only clients holding a fund with a risk rating that is increasing are required to be notified. For more information, contact your Regional Sales Team. The information contained herein has been provided by TD Asset Management Inc. and is for information purposes only. The information has been drawn from sources believed to be reliable. Graphs and charts are used for illustrative purposes only and do not reflect future values or future performance of any investment. The information does not provide financial, legal, tax or investment advice. Particular investment, tax, or trading strategies should be evaluated relative to each individual's objectives and risk tolerance. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the fund facts and prospectus, which contain detailed investment information, before investing. Mutual funds are not guaranteed or insured, their values change frequently and past performance may not be repeated. TD Mutual s and the TD Managed Assets Program portfolios are managed by TD Asset Management Inc., a wholly-owned subsidiary of The Toronto-Dominion Bank and are available through authorized dealers. Epoch Investment Partners, Inc. is a wholly-owned subsidiary of The Toronto-Dominion Bank and an affiliate of TD Asset Management Inc. All trademarks are the property of their respective owners. The TD logo and other trade-marks are the property of The Toronto-Dominion Bank. 7