Description of TDPCW and TDPCW's Advisory Services
TDPCW is a wholly-owned subsidiary of TD Bank, N.A. (“TD Bank”). TD Bank provides a broad range
of traditional banking and investment services in the United States. TD Bank is a subsidiary of TD Bank
US Holding Company. TD Bank US Holding Company is a subsidiary of TD Group US Holdings LLC.
TD Group US Holdings LLC is a subsidiary of The Toronto-Dominion Bank (the “Bank”).
TDPCW is registered as an investment adviser and broker-dealer with the SEC and is a member of
FINRA. TDPCW’s investment advisory services include sponsoring wrap fee programs.
TDPCW offers investment advisory services to clients through five separate wrap fee programs: (1)
Institutional Managed Accounts; (2) High Net Worth Managed Accounts; (3) TD Investment Services
(US) Managed Accounts; (4) TD Automated Investing; and (5) TD Automated Investing Plus.
This Brochure provides information about the TD Automated Investing and TD Automated Investing
Plus digital platform investment advisory wrap fee programs (each a “Program,” and together, the
“Programs”) sponsored by TDPCW. Information about the other wrap fee programs sponsored by
TDPCW are described in a separate Form ADV brochure and can be obtained at the SEC’s website at
www.adviserinfo.sec.gov. Under the Programs, clients pay a single fee for discretionary investment
management services and trade execution costs and, in certain instances, other services such as
custody, recordkeeping and reporting. You do not pay separately for commissions for each trade
executed in this type of account. Instead, we incur the cost of executing securities transactions. This
creates a conflict of interest because TDPCW is compensated regardless of the number of trades
executed in your account. To manage this conflict of interest, we monitor account activity to help identify
inactivity. For the avoidance of doubt, client accounts will incur certain fees and expenses (including
but not limited to SEC transaction fees) which are disclosed in confirmations and/or account
statements. Some of the other TDPCW wrap free programs offer the same and/or similar investment
strategies through different sales channels at different fee levels. The wrap fee that clients pay will vary,
depending on the investment advisory program selected.
Description of TD Automated Investing
TD Automated Investing gives clients access to discretionary investment advisory services through the
TD Wealth Automated Investing and TD Wealth Automated Investing Plus website, mobile application,
and/or other digital interfaces as TDPCW may develop and use in connection with the Program from
time to time, including third-party digital interfaces TDPCW does not control, but has authorized for the
Program (collectively, the “Site”).
The Program uses the information that a client provides on the Site regarding investment time horizon
and appetite for risk to recommend a specific asset allocation and a corresponding strategic investment
portfolio (“TD Strategic Portfolio”).
An unaffiliated broker-dealer (the “Clearing Firm”) provides custody services for the TD Automated
Investing and TD Automated Investing Plus accounts and also provides trade execution and related
services to implement the recommended TD Strategic Portfolio. TDPCW provides brokerage services
as the introducing broker-dealer on transactions in clients’ accounts within the Program. For additional
information, see “Brokerage and Custodian” under this Item 4 below.
The TD Strategic Portfolios available through the Program consist of third-party unaffiliated exchange
traded funds (“ETFs”) and/or mutual funds that are reviewed, selected and monitored by the members
of TDPCW’s Investment Strategy team as well as a cash allocation. For additional information about
the TD Strategic Portfolios, see “Portfolio Construction” under Item 6 below.
For important information about each ETF and/or mutual fund, including investment objectives, risks,
charges, and expenses, clients can read each ETF's offering document or mutual fund’s prospectus.
The Clearing Broker delivers prospectuses to clients or clients can visit the fund company's website.
Clients are automatically enrolled, to the extent permitted by applicable law, in a program to deposit
(i.e., “sweep”) available cash balances in a Program account that are pending investment, as well as
any strategic cash balances allocated to cash, in either a bank deposit account held at TD Bank, N.A.
or TD Bank USA or clients can opt to maintain cash balances in cash. For additional information, see
“Cash Balances and the Sweep Feature” under this Item 4 below.
The Program is designed to assist clients in meeting specific investment goals. It is not designed as a
comprehensive investment advisory service. In order to participate in the Program, clients are required
to establish online account access through the Site.
Clients in the TD Automated Investing Program will generally be able to contact the TD Private Client
Services Team at 833-981-8324 for administrative assistance with their account.
Because of the online digital nature of the Program, the goal-based focus and the limited investment
portfolios, TD Automated Investing may not be appropriate for all investors. Clients that are interested
in other types of investment services, such as accounts supported by a dedicated investment advisory
representative and a more comprehensive range of investment services and products, may review the
full range of TDPCW investment advisory offerings on the TD Wealth website at
https://www.td.com/us/en/investing/.
Before investing in the Programs, please read this entire Brochure and the FAQs available at
https://www.td.com/us/en/investing/documents/pdf/FAQs_AutomatedInvestingAutomatedInvestingPlus.
pdf.
Description of TD Automated Investing Plus
TD Automated Investing Plus offers the same services as TD Automated Investing discussed above,
and access to the same TD Strategic Portfolios as TD Automated Investing. TD Automated Investing
Plus clients can contact the TD Private Client Wealth Service Team at 833-981-8324 for administrative
support, but will also be connected to a team of personal financial advisors (“PFAs”) who are available
to answer questions about the TD Automated Investing Plus account, provide goal-based advice and,
at the client’s request, will work with the client to prepare a more comprehensive client profile that takes
into account additional client assets, additional financial objectives and a household risk tolerance that
goes beyond the scope of TD Automated Investing’s advisory services, and will result in a personalized
financial plan. Such additional information, will not, however, be considered in recommending a TD
Strategic Portfolio for your account within the Program.
Electronic Delivery of Documents
To receive investment advisory services, clients and prospective clients are required to complete an
online assessment, an account application and enter into an investment advisory agreement, a
brokerage agreement and other account agreements (collectively, the “Program Agreements”)
electronically through the Site. These Program Agreements along with other disclosures and notices
will be delivered to clients in electronic format, by posting the information to the Site where clients can
access their account information, and through email or other electronic means.
In order to enroll in a Program, clients must be willing to accept the terms of an electronic delivery
consent (“Electronic Delivery Consent”), which will require that the client agrees to electronic delivery of
all TDPCW Program documents and communications. Clients may request hard copy delivery of
documents that the Clearing Broker produces, which are account statements, trade confirmations,
proxies, and prospectuses. By signing the Program Agreements, clients will be automatically enrolled to
receive electronic delivery of Program documents. Once enrolled in electronic delivery, clients may
revoke their consent to electronic delivery at any time by updating their delivery settings on the Site or
calling the TD Private Client Wealth Service Team at 833-981-8324.
Clients must provide TDPCW with a valid email address to enroll in a Program. Clients are required to
notify TDPCW immediately in the event their email address changes or becomes inaccessible by
contacting by updating this information in the Site or by calling the TD Private Client Wealth Service
Team at 833-981-8324. Clients will be informed by email when a new or amended agreement or
document is available; therefore, it is important that clients maintain an accurate email address at all
times. If a client fails to provide or maintain an accurate email address and other contact information,
TDPCW may terminate that client’s participation in the Programs. TDPCW will attempt to contact clients
by other means when it determines that a client’s email address is invalid.
Clients must also own or have access to an electronic device with the necessary hardware and software
to access the Site as an initial and continued condition of participating in the Program. Please refer to
the Electronic Delivery Consent, which is an exhibit to the Client Agreement (as defined below), for
additional terms and conditions regarding electronic delivery of Program communications. Telephone
support is available for TD Automated Investing and TD Automated Investing Plus clients who need
help with administrative matters regarding their account. TD Automated Investing Plus clients may also
call the TD Private Client Wealth Service Team to speak to a PFA, as described above.
Account Opening, Initial Investment and Rebalancing
Client Risk Profile
Clients are required to complete an interactive information request through the Site which requires the
client to (1) select one of the available investment goals; and (2) complete a risk tolerance
questionnaire, which includes questions about your risk tolerance and your investment time horizon for
the account (the “RTQ”). Responses to the RTQ are scored to determine the client’s risk profile (the
“Risk Profile”). The client’s Risk Profile will form the basis of TDPCW’s investment advisory
recommendation of a TD Strategic Portfolio. The Programs will recommend a TD Strategic Portfolio for
you based on certain information you provide. Specifically, TDPCW only considers information
regarding your risk tolerance and investment time horizon in response to the RTQ in making a
recommendation. TDPCW does not consider the entire range of information you provide for purposes
of recommending a TD Strategic Portfolio. A client may select a TD Strategic Portfolio that is adjacent
to (one deviation up or down) the recommended TD Strategic Portfolio. It is extremely important that
clients and prospective clients respond to the RTQ accurately. In the event that any RTQ response
changes or becomes inaccurate, a client must contact the TD Private Client Wealth Service Team at
833-981-8324 immediately. The Programs are not intended for clients who seek to “time the market”
by changing their RTQ frequently. Frequent changes to the RTQ will cause frequent purchases and
sales of securities in a client’s account and may create tax consequences for the client.
Client Responsibility
Investment advice offered through the Program is highly dependent on a client’s responses to the RTQ,
which forms the basis of the client’s Risk Profile and TDPCW's recommendation of a model portfolio. It
is extremely important that clients and prospective clients respond to the RTQ accurately and revisit
their responses to the RTQ in the event that any response becomes inaccurate. Clients should be
careful when entering responses to the RTQ because inaccurate information will affect TDPCW's
investment recommendations. TDPCW does not and will not verify any information that clients and
prospective clients provide through the Site nor will it consider any information that it may obtain or
possess as a result of a client or prospective client’s other accounts or relationships with TDPCW or its
affiliates. In addition, after completing the RTQ, depending on client’s Risk Profile and subject to certain
limitations, the Program allows a client to select a model portfolio that is riskier or more conservative
than the one recommended by the Program. Clients are responsible for determining whether such
decision is suitable and consistent with their Risk Profile and investment objectives. TDPCW will not be
responsible for such decision, including, but not limited to, any difference in investment performance
between the Recommended Portfolio and the Selected Portfolio.
Investment Goals
The goal assessment tool asks clients to identify an investment goal. The Programs’ investment goals
are:
• growth;
• retirement;
• a major purchase
The default investment goal for individual retirement accounts (“IRAs”) is “retirement.” An account’s
investment goal may not be changed after the account has been opened.
TD Strategic Portfolios
The Programs offer several TD Strategic Portfolios. The asset allocations of the TD Strategic Portfolios
are based on the firm’s long-term capital market assumptions, as well as correlation between asset
classes. The Programs’ current TD Strategic Portfolios are: All Fixed Income; Conservative; Moderately
Conservative; Moderate; Moderately Aggressive; Aggressive; and Aggressive Growth. TD Strategic
Portfolios are available to participants in the Programs.
Construction of Portfolios
TD Strategic Portfolios are designed and monitored by TDPCW portfolio management professionals.
TDPCW manages similar model portfolios for other advisory programs; however, the strategy and the
securities within the TD Strategic Portfolios are different and are expected to perform differently.
However, similar TDPCW model portfolios may perform better or worse than the TD Strategic Portfolios.
The TD Strategic Portfolios are comprised of ETFs and mutual funds. The ETFs and mutual funds
available in the Programs may not be available in other TDPCW advisory programs.
Clients should review “Portfolio Construction” under Item 6 below for the methodologies TDPCW
uses in creating and updating the TD Strategic Portfolios and their related risks. TDPCW has
discretionary investment authority and retains trading authority to implement the model portfolios and
place orders consistent with each client’s TD Strategic Portfolio.
Cash Balances and the Sweep Feature
Each TD Strategic Portfolio is designed to include a target cash allocation, which TDPCW may change
in its sole discretion. Cash in a client’s account will either be deposited into the Bank Sweep Product
(discussed below) or held in cash. Each Program will default to have available cash balances in a
client’s account deposited (“swept”) into the TD Wealth Bank Deposit Sweep Product (”Bank Sweep
Product”).
Clients also can elect to have cash balances remain in their account, but these cash balances will not
earn interest. The Wrap Fee is charged on all cash balances. Because a client will not be earning any
interest in the cash in their account, the cash balances will have a negative return (money will be
deducted for fees, reducing the cash balance). For more information about rebalancing, see
“Rebalancing Logic” under this Item 4 below.
Bank Sweep Product
The Bank Sweep Product is intended for the deposit of available cash in an account into bank deposit
accounts (”Deposit Account”) at TD Bank USA N.A. or TD Bank N.A. (“Program Banks”). The TD
Wealth Bank Deposit Sweep Product Terms and Conditions can be found at
https://tdwealth.netxinvestor.com/nxi/disclosure/brokeragedisclosure/bankdepositsweepdisclosure
Cash in the Bank Sweep Product is subject to the applicable Program’s Advisory Fees, as described
in “Wrap Fee” under this Item 4 below.
TDPCW decides the interest rate that is paid on the Bank Sweep Product to clients. Currently, TDPCW
sweeps the cash to an account that pays an interest rate that is subject to change without prior notice
to clients.
TDPCW and/or its affiliates benefits from deposits and credits in client accounts before cash balances
are invested or swept into a sweep vehicle (usually the next business day) as we receive a portion of the
interest that clients earn in the Bank Sweep Product, and therefore TDPCW and/or its affiliates will
benefit from additional revenues earned based on a client’s cash held in the Bank Deposit Product.
This benefit, “free credit interest,” is in the form of income at the prevailing market rates on overnight
investments averaging 0.01%. TDPCW regularly reviews the stated interest rate to determine if it is
competitive with the rate paid in other sweep programs.
Balances in the Deposit Account are covered by Federal Deposit Insurance Corporation (“FDIC”)
insurance, subject to applicable limits and terms and conditions, but are not protected by the Securities
Investor Protection Corporation ("SIPC"). TDPCW does not review or monitor FDIC insurance limits for
clients. Clients are responsible for monitoring the total amount of deposits that they have with the
Program Banks to determine the extent of FDIC deposit insurance coverage available to them on their
deposits. The TD Wealth Bank Deposit Sweep Disclosure provides further information about the
Deposit Account, including the limits, terms and conditions of FDIC insurance coverage. The interest
rate on the Deposit Account may be higher or lower than yields on other cash alternatives not available
in the Programs, such as money market mutual funds.
The current interest rate for cash in the Deposit Account can be obtained by calling the TD Private
Client Wealth Service Team at 833-981-8324. The rate changes regularly, so it is prudent to check this
website on at least a quarterly basis.
The Program Banks and TDPCW have a conflict of interest in setting the amount of interest that a client
will receive, and the amount of that interest that TDPCW will keep, as that will affect the additional
compensation that TDPCW and its affiliates will earn. TDPCW also has a conflict of interest in
determining how much of a TD Strategic Portfolio is allocated to cash, as that also affects the amount
of additional compensation TDPCW and its affiliates will earn. Finally, the Program Banks and TDPCW
have a conflict of interest in selecting the cash sweep vehicles. Only TD-affiliated banks are currently
used for the Bank Deposit Sweep, and TDPCW and/or its affiliates might not be able to set the interest
rate or keep as much of the client’s interest if an unaffiliated bank were used. No money market funds
are offered as cash sweep vehicles. Although some money market funds offer higher yields than bank
deposit accounts, if a money market fund was used, TDPCW might not be able to earn as much
compensation as it could earn from the Bank Sweep Product.
Client Agreement
Clients are required to enter into the TD Automated Investing and TD Automated Investing Plus
Investment Advisory Agreement (“Client Agreement”). The Client Agreement authorizes TDPCW’s robo-
advisor to act as the client’s investment adviser with investment discretion and trading authority over
the client’s account. TDPCW cannot change the TD Strategic Portfolio the client selects; only the client
can do that by completing a new RTQ or requesting a change in TD Strategic Portfolio.
Initial Investment
After a client has enrolled in a Program, funded his or her account and selected his or her TD Strategic
Portfolio, TDPCW will determine when the account is in “good order” and able to be invested in
accordance with the TD Strategic Portfolio, subject to any reasonable investment restrictions the client
has placed on his or her account.
Funding Program Accounts
Clients currently may only fund Program accounts with cash.
Rebalancing Logic
Each Program has been designed to automatically rebalance the assets in a client’s Program account
at least semi- annually. A Program account also will be rebalanced (i) when there is a single deposit of
$100 or more to the account that causes the account’s cash allocation to drift outside of certain
predetermined parameters, thereby triggering a need to rebalance the account, (ii) after an account
freeze has been lifted, (iii) after a client withdraws cash from their account in an amount greater than
the available cash in the account, causing the need to sell ETF or mutual fund shares in the account, or
(iv) at other times as determined by TDPCW in its sole discretion. An account will not be rebalanced
solely because its holdings deviate from the asset allocation targets of the TD Strategic Portfolio in an
amount exceeding predetermined drift thresholds except semi-annually, unless another rebalance
trigger event occurs. The Program’s rebalancing logic automatically determines whether and when to
buy and sell securities in a client’s account. To rebalance an account, the Programs’ logic will generally
cause the sale of ETFs and/or mutual funds that are overweight relative to the target asset allocations
and the purchase of ETFs and/or mutual funds that are underweight. Rebalancing may result in
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additional trading costs that will impact the overall value of your account.
Over time, the ETFs and/or mutual funds in a client’s Program account will appreciate (or depreciate)
in value at different rates, a client may decide to change their TD Strategic Portfolio, subject to the
limitations described herein, or a client may make additions to or withdrawals from their account.
Rebalancing seeks to ensure that the risk level of an account corresponds to the risk level of the
selected TD Strategic Portfolio.
Rebalancing may have tax implications for a client’s Program account and rebalancing is not designed
to be tax-efficient. Clients should discuss the tax impact of rebalancing with their tax advisors before
investing through a Program.
The rebalancing parameters applicable to each Program, including the manner and frequency of
rebalancing, may change at any time without notice. Rebalancing of accounts may be delayed or
otherwise impacted by market conditions and by operational constraints. In certain circumstances,
including market instability, or in response to certain types of operational or technological errors,
TDPCW has the authority to decide not to rebalance accounts, in its sole discretion.
Withdrawals
Clients may request a withdrawal from their accounts at any time, subject to applicable law and the Client
Agreement, through the Site or by contacting the TD Private Client Wealth Service Team at 833-981
8324. Clients with IRA accounts must contact the TD Private Client Wealth Service Team at 833-981
8324 to request a withdrawal from their IRA account. If a client’s account holdings are within the
percentage variance of the target asset class percentages of the TD Strategic Portfolio, and cash is
required for a withdrawal, account holdings will be sold to accommodate such withdrawal request.
If the amount of the withdrawal exceeds the cash available in the account, the withdrawal will not be
made until the dollar amount of the request is available from the sale proceeds of account holdings.
Under normal market conditions, it can take 2-4 business days to process the withdrawal funds or sale
of funds from a Program account, but these time frames can be longer due to market conditions and/or
other factors. For the purposes of this Brochure, “business day” means any week day (Monday through
Friday) that is not a federal public holiday (generally any day the financial markets are open for trading
is considered a business day). If your withdrawal request requires the sale of any securities, you
acknowledge and agree that it may take up to 10 business days or longer to process.
A withdrawal that reduces an account below $900 for TD Automated Investing or $15,000 for TD
Automated Investing Plus may subject the account to termination. If an account drops below $900 for
TD Automated Investing or $15,000 for TD Automated Investing Plus, the account may not buy or sell
securities in the same proportion for its selected TD Strategic Portfolio as accounts that meet the
minimum account size. For example, TDPCW will be unable to execute certain small trades for the
account, because they would result in the account holding less than a full share. Please see Item 5
below, which includes a description of the Programs’ minimum account requirements.
Investment Advisory Services
TDPCW’s robo-advisor has discretionary investment authority over a client’s Program account to make
investments consistent with the selected TD Strategic Portfolio. TDPCW is responsible for determining
the allocation of assets among ETFs and/or mutual funds for the TD Strategic Portfolio; selecting,
adding, removing, or replacing ETFs and/or mutual funds in the Programs; determining the model
portfolio construction and for selecting and monitoring the ETFs and/or mutual funds that are included
in TD Strategic Portfolios.
Operational considerations,
such as ETF and mutual funds concentration and capacity issues, can
result in the timing or implementation of trades for a client’s account to differ from that of another client
or group of clients. It is TDPCW’s policy, to the extent practicable, to allocate, within its reasonable
discretion, investment opportunities among clients over a period of time on a fair and equitable basis.
Reasonable Restrictions
Clients can place reasonable restrictions on the management of their account by designating certain
specific ETFs and/or mutual funds that should not be purchased or held in their account, subject to
TDPCW’s acceptance and each Program’s parameters described below. Requests for restrictions can
be made during the new account opening process on the Site, and a TD Private Client Wealth Service
Team member will follow up regarding these restrictions. For an existing account, clients may make
investment restriction requests by calling the TD Private Client Wealth Service Team at 833-981-8324.
TDPCW is not required to accept account restrictions that it deems unreasonable. Whether a particular
restriction is reasonable will depend on the relevant facts and circumstances, including whether the
restriction is inconsistent with the nature or operation of the Program. The restriction of more than one
ETF and/or mutual fund will be deemed to be unreasonable due to the impact on model portfolio
construction and the investment strategy of the TD Strategic Portfolio. Any restrictions a client places
on the management of his or her Program account will cause the account to perform differently than
similar, unrestricted accounts, possibly increasing costs or producing lower returns. Requests for
restrictions relating to the underlying securities of a particular mutual fund or ETF will generally be
deemed unreasonable, as TDPCW has no control over the underlying investments of a particular fund.
TDPCW will not accept any restrictions or directions with regard to the purchase of specific funds for
an account.
If TDPCW accepts the requested restriction, TDPCW has the sole discretion to invest the portion of the
client’s account that would have been invested, or was previously invested, in the restricted security in
the other securities in the account (on a pro rata basis), to select a substitute security or to hold those
assets in cash. Substitute ETFs and/or mutual funds could have fees or expenses that are higher than
the ETFs and/or mutual funds normally used in the Programs. If a restriction request on an ETF and/or
mutual fund that is currently held in a client’s account is accepted, the ETF and/or mutual fund will be
sold consistent with the Programs’ rebalancing logic, and a client may pay taxes on the sale.
Brokerage and Custodian
The Clearing Broker, in its capacity as an SEC-registered broker-dealer, provides clearing and trade
execution services and serves as the custodian for accounts within each Program. The client must
electronically agree and consent to a separate brokerage agreement with TDPCW as the introducing
broker (“Customer Agreement”) when enrolling in a Program to establish the underlying brokerage
account.
The Clearing Broker provides a variety of services for the Programs, including holding client account
assets in custody, settling transactions, delivering electronic trade confirmations, account statements
and tax reporting documentation, and other operational account-related services. The Clearing Broker
will not provide (and should not be construed as providing) clients with any investment advice in
connection with either Program.
The Clearing Broker also executes transactions for the client’s account in accordance with the selected
TD Strategic Portfolio, subject to any reasonable investment restrictions that the client has imposed
and that TDPCW has accepted.
Subject to its obligation to seek best execution, TDPCW has the ability to execute transactions for client
accounts through other broker-dealers. TDPCW can use other broker-dealers in its sole discretion, at
any time and for any reason, including if there is a disruption in the Clearing Broker’s services for any
reason. In these instances, TDPCW or a third party will execute transactions for the account. In such
circumstances, clients will incur transaction-related fees and expenses that are in addition to, and are
not covered by, the Advisory Fee (defined below).
In executing transactions for an account, the Clearing Broker may act on an agency or principal basis,
to the extent permitted by law and subject to applicable restrictions, and will be entitled to compensation
for its services. Because it is anticipated that transactions for accounts will be executed exclusively
through the Clearing Broker, the prices at which transactions are executed may be less favorable for
the client than would be the case if another broker-dealer were used.
Some or all transactions effected for a client’s account may be aggregated with transactions for other
clients of TDPCW, the Clearing Broker or one of their respective affiliates and may be later allocated to
the client’s account at an average price. The Clearing Broker may also, from time to time, and in its
discretion, act as principal (to the extent permitted by law) in aggregated orders that are allocated to
the client’s account at an average price. The client’s trade confirmations will identify when a transaction
was effected at an average price, the average price at which it was effected, and if so, whether the
Clearing Broker acted as principal or agent for the transaction.
TDPCW generally aggregates (or blocks) orders for the purchase or sale of securities during each
trading day for the Programs’ accounts. Trades resulting from client-initiated activity (e.g., account
contributions, withdrawals, changes in a client’s TD Strategic Portfolio, and client restrictions) will
typically be blocked together and trades resulting from rebalancing activity will typically be blocked
together. When an order requires more than one execution, participating accounts will receive the
average price for transactions in their particular block order. Although it is expected that block trades
will be sent to the market at approximately the same time, the Programs’ accounts generally will receive
a different execution price depending on whether the trades result from client-initiated activity or
rebalancing activity. Either block can be executed first on any particular trading day. To the extent
Program accounts regularly trade behind other types of TDPCW client accounts, it is possible that
Program accounts will receive worse prices than accounts trading ahead of it. The Programs’ trading is
conducted separately from other TDPCW trading, and orders for the Programs’ accounts are not
aggregated with orders placed on behalf of other TDPCW clients.
When a transaction for the client’s account is aggregated with transactions for other accounts, the price
at which the aggregated transaction is effected may be less favorable for the client’s account than would
be the case if the relevant security or other financial product was transacted for the client’s account
individually.
The Programs are discretionary investment advisory programs, and not self-directed brokerage
services. Unlike self-directed brokerage accounts, clients will not be able to place orders to buy or sell
specific securities. Rather, TDPCW will place orders to buy and sell securities consistent with the
discretionary authority it has under the Client Agreement. TDPCW reserves the right, at any time and
without notice, to delay or suspend trading activity in the Programs’ accounts in its sole discretion. If
TDPCW suspends or delays trading, requests to withdraw and transfer cash from the Programs’
accounts will continue to be honored. However, there may be a delay in the Programs’ ability to liquidate
securities to cover requests for withdrawals in excess of the cash in a Program account, or to invest
existing or new cash balances.
Trade Confirmations and Account Statements
Clients may access account information on an ongoing basis through the Site. Clients will receive
electronic trade confirmations of all transactions and electronic account statements from the Clearing
Broker, at least quarterly (monthly for months when there is activity in their account) and should review
these statements carefully.
Wash Sale Notice
The Programs have not been designed to monitor, reduce or limit tax consequences resulting from
trading in a client’s Program account or other accounts, including wash sales. A wash sale occurs when
a security is sold at a loss and, within 30 days before or after this sale, the same or a “substantially
identical” security is bought. IRS rules prevent taxpayers from taking a tax deduction for a security sold
in a wash sale. TDPCW will not be responsible for ensuring that transactions in the same security or a
substantially similar security within a client’s Program account, a client’s account(s) outside of the
Programs, or between multiple Program accounts established for a client, do not create a wash sale.
For more information on the wash sale rule, investors should review IRS Publication 550.
Proxy Voting, Corporate Actions and Other Legal Matters
TDPCW will not vote proxies (or give advice about how to vote proxies) relating to securities held in a
Program account. Each client has the right to vote, and is solely responsible for voting, proxies for any
securities and other property in the client’s account. The Clearing Broker or the Clearing Broker’s
delegee will promptly send you proxy ballots and related shareholder communications, as well as any
other information intended for distribution to you. You are responsible for taking any actions or
instructing the Clearing Broker to take these actions. We will not act on your behalf or render any advice
in connection with the foregoing.
TDPCW will not be responsible for evaluating and acting on corporate actions for securities in a
Program account, such as: any conversion option; execution of waivers, consents and other
instruments; and consents to any plan of reorganization, merger, combination, consolidation, liquidation
or similar plan.
TDPCW will not be responsible for, and each client has the right and responsibility to take any actions
in any legal proceedings, including without limitation, bankruptcies, class action lawsuits, and
shareholder litigation associated with securities in their Program account. Each client has the right to
initiate or pursue any legal proceedings, including without limitation, shareholder litigation, including for
transactions, securities or other investments held in the Program account or the issuers thereof.
TDPCW is not obligated to render any advice or take any action on a client’s behalf as to securities or
other property held in the Program account, or the issuers thereof, which become the subject of any
legal proceedings, including without limitation, bankruptcies and shareholder litigation, to which any
securities or other investments held or previously held in the Program account, or the issuers thereof,
become subject.
In addition, TDPCW is not obligated to initiate or pursue any legal proceedings, including without
limitation, shareholder litigation, on behalf of a Program account, including for transactions, securities
or other investments held or previously held, in the Program account or the issuers thereof.
TDPCW will not be responsible or liable for: (1) failing to notify a client of proxies; or (2) failing to send
to the client proxy materials or annual reports where TDPCW or its affiliates have not received proxies
or related shareholder communications on a timely basis or at all.
Wrap Fee
General
Clients pay an annual asset-based fee (“Wrap Fee”) to TDPCW for participating in each Program as
described below (subject to any applicable discounts, promotions or adjustments). The Wrap Fee
covers the costs associated with advisory and introducing broker services performed by TDPCW and
the custody and execution services performed by Clearing Broker under each Program.
Program Annual Wrap Fee Minimum Annual Wrap Fee
TD Automated Investing 0.30% of assets under
management, including cash
$15 for TD Automated
Investing clients with $1000
to $5000 under
management, including cash
TD Automated Investing Plus 0.60% of assets under
management, including cash
$250
TD Automated Investing clients pay a Wrap Fee of 0.30% per annum based on the daily average
balance of the assets in the Account, including any cash balances. A minimum annual Wrap Fee of
$15.00 is required for TD Automated Investing account balances between $1,000 to $5,000. TDPCW
reserves the right to change the cash allocation in its sole discretion and without advance notice to its
clients.
The Wrap Fee will be computed and payable quarterly for each Program account in arrears based upon
the average daily balance of all assets held in each individual Program account (including cash) for the
quarter. For the avoidance of doubt, TDPCW will not aggregate assets across a client's other TDPCW
advisory accounts when calculating the Wrap Fee. Each account opened within the Program will be
assessed a separate Wrap Fee.
The Wrap Fee for the first quarter in which a client is approved as a client of a Program and the Program
account is funded at or above the Program’s account minimum, is calculated on a pro-rata basis and
debited in the quarter immediately following the account’s opening, based on the average daily balance
of the account on the date the assets, including cash, are placed in the Program until the end of the same
month.
Subsequent Wrap Fees will be charged quarterly in arrears, on or about the 5th business day of
January, April, July and October (each, the beginning of a calendar quarter), based on the average
daily balance of the previous calendar quarter.
A Client Agreement may be canceled at any time. Wrap Fees for partial billing periods upon the
inception or termination of a Program account will be prorated (and will be payable at the time of
termination), which may result in a refund or require the client to pay any remaining fees due for the
partial billing period. The Advisory Fee will be reflected on the account statement issued by the Clearing
Broker. TDPCW will automatically debit the Advisory Fee from the client’s TD Automated Investing
account.
Participation in the Programs may cost more or less than purchasing such services separately. Also,
the annual Wrap Fee charged by TDPCW for participation in the Program may be higher or lower than
those charged by other sponsors of comparable wrap fee programs. Depending upon the percentage
of the annual Wrap Fee charged by TDPCW, the amount of portfolio activity in the client's account, and
the value of custodial and other services provided, the annual Wrap Fee may or may not exceed the
aggregate cost of such services if they were to be provided separately and/or if TDPCW were to
negotiate transaction fees and seek best price and execution of transactions for the client's account.
Underlying ETF and Mutual Fund Fees
Clients invested in mutual funds and/or ETFs through a TD Strategic Portfolio pay their pro rata share
of a mutual fund’s or ETF’s internal management fees and other expenses. All fund fees and expenses
are disclosed in each mutual fund’s or ETF’s prospectus and are exclusive of and in addition to the
Advisory Fee. These fees are paid directly by the mutual fund or ETF but are ultimately borne by the
client. TDPCW does not receive any portion of the fund management fees, commissions, or other
expenses charged by mutual funds or ETFs. Rebalancing may result in additional trading costs
associated with the mutual funds and ETFs that will impact the overall value of your account. Please
review the offering materials or prospectuses for the mutual funds and/or ETFs in your portfolio to
understand the internal management fees and expenses.
Additional Fees
TDPCW will not charge separate brokerage commissions or transaction fees for trades executed
through the Clearing Broker. Additional fees and charges imposed by custodians, brokers and other third
parties include, but are not limited to:
• internal fees and expenses in connection with the establishment, administration, maintenance, or
termination of accounts;
• charges imposed by mutual funds and ETFs, including mutual fund redemption fees and/or
short-term trading fees;
• brokerage commissions, costs, and/or mark-ups and mark-downs incurred when trades are
executed by a broker-dealer other than the Clearing Broker;
• account closing/transfer costs and transfer taxes;
• processing fees or certain other costs or charges that may be imposed by the SEC or third
parties (including, among other things, odd-lot differentials, transfer taxes, foreign custody fees,
exchange fees, supplemental transaction fees, regulatory fees and other fees or taxes that may
be imposed pursuant to law);
• certain non-brokerage-related fees such as retirement account custodian fees and retirement
account termination fees;
• electronic fund, wire and other account transfer fees;
• any other charges imposed by law or otherwise as TDPCW and the client agree (including
charges payable to TDPCW and/or third parties as described in the Client Agreement).
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The annual Wrap Fee does not include certain charges and administrative fees, including, but not
limited to, fees charged by Independent Managers, transaction charges (excluding mark-ups and mark
downs) resulting from trades effected through or with a broker-dealer other than the custodial broker
dealer, transfer taxes, odd lot differentials, exchange fees, interest charges, and any charges, taxes or
other fees mandated by any federal, state or other applicable law or otherwise agreed to with regard to
client accounts. Such fees and expenses are in addition to the annual Wrap Fee.
Waivers, Reductions and Negotiation of Fees
In its discretion, TDPCW can negotiate, waive or reduce the Wrap Fee for any client or group of clients,
including employees or TDPCW and its affiliates. These Wrap Fees may be waived or reduced in
connection with promotional efforts. Refer to the terms associated with such promotions for details
regarding how they affect the fees and expenses of the Program and the length of any such waiver or
fee reduction. From time to time, the Wrap Fee can be increased. TDPCW will provide clients with
advance notice prior to increasing the Wrap Fee. TDPCW may charge a lesser or higher Wrap Fee,
wave its minimum fee, waive its fee entirely, or exclude assets from billing based upon certain criteria
(i.e., anticipated future additional assets, dollar amount of assets to be managed, related accounts,
account composition, grandfathered fee schedules, employees and family members, courtesy
accounts, competition, negotiations with client, etc.). Please Note: As result of the above, similarly
situated clients could pay different fees. In addition, similar wrap fee advisory services may be available
from other investment advisers for similar or lower fees.
The Wrap Fee can be more or less than the cost of paying for investment advice, trade execution,
custody and reporting services separately, depending on the cost of these services if provided
separately and the level of trading activity in the client’s Program account.
TDPCW charges fees that it believes are reasonable in relation to the scope of services and nature of
the investment advice provided. However, clients should understand that TDPCW and its affiliates (and
other firms) offer other services, products and platforms that are available at lower or higher fees than
those charged by the Programs. Clients and prospective clients are able to receive similar products and
services from other firms at a higher or lower cost than what is charged for the Programs.
Clients and prospective clients should consider these other services, products and platforms available
to determine the most appropriate for them. TDPCW offers investment advisory services through a
variety of sales channels. Programs that offer the same and similar investment strategies are offered
in the same and different sales channels, and at different fee levels with different services. When
comparing TDPCW advisory and/or brokerage offerings, products and platforms, prospective clients
should consider various factors, including, but not limited to: the type of the account (advisory or
brokerage); the type of advice received (discretionary or nondiscretionary); the types of fees charged
(asset-based fees or commission-based fees); the nature of the relationship (online or in-person or
both); and the overall cost of investing. Clients’ Wrap Fees, available investment strategies, and the
services that they receive will vary depending on the sales channel through which they access the
TDPCW offerings.
Discretion to Transfer TD Automated Investing Plus Accounts to TD Automated Investing
TDPCW may exercise, in its sole discretion, the authority to transfer a TD Automated Investing Plus
program account to a TD Automated Investing program account if TDPCW determines that the TD
Automated Investing Plus client has not utilized the TD Automated Investing Plus services as described
in Item 4 under Description of TD Automated Investment Plus. If a TD Automated Investing Plus
client does not utilize the TD Automated Investing Plus services twelve (12) months after TDPCW
begins management of the TD Automated Investing Plus account, TDPCW will deliver an initial written
notice to the TD Automated Investing Plus client. The TD Automated Investing Plus client may elect to
remain in a TD Automated Investing Plus account or may elect to transfer to a TD Automated Investing
account. If the TD Automated Investing Plus client does not respond to the initial notice or utilize
the TD Automated Investing Plus services, TDPCW will send the client a second written notice. If
the TD Automated Investing Plus client does not respond to the second notice within a reasonable
period of time as determined by TDPCW, TDPCW will transfer the TD Automated Investing Plus client
to a TD Automated Investing account. Subsequently, a transferred client may call the TD Private Client
Service Team at 833-981-8324 to direct TDPCW to transfer the TD Automated Investing account
to a TD Automated Investing Plus account.
Account Termination
TDPCW may terminate the Client Agreement at any time and for any reason by sending notice to the
client. With prior notice to you, TDPCW may close the Account and terminate the Client Agreement if
you do not fund your account 60 calendar days after receiving notice that your Account has been
opened. With prior notice to you, TDPCW may close the Account and terminate the Client Agreement
if you withdraw assets from an Account and the Account does not meet the minimum account balance
for your TD Automated Investing or TD Automated Investing Plus account and you do not add additional
assets to your Account to meet the required minimum balances within the time period provided in the
notice. Without prior notice to you, TDPW may close the Account and terminate the Client Agreement,
if the Account remains inactive and has no assets or balances owing in the Account for a period of at
least 24 months. There may be other fees associated with closing your accounts.
The client may terminate the Client Agreement at any time. Client termination requests made by phone
will be verified by TDPCW in writing. The termination of the Client Agreement will terminate enrollment
of the TD Automated Investing or TD Automated Investing Plus account and will terminate the Customer
Agreement. Following termination, the client may direct that its positions in ETFs and mutual funds be
transferred to another financial firm within 30 business days. If TDPCW does not receive instructions
within 30 business days, the securities in the account will be sold and the proceeds of the sale will be
sent to the client by check to the address of record or deposited into the bank account of record, unless
otherwise agreed between the client and TDPCW.
A client may experience negative tax consequences if his or her securities are sold following account
termination, accordingly, clients should discuss the potential tax implications of a complete or partial
liquidation of the positions in his or her account with his or her tax advisor.
Further, if either party terminates the Client Agreement, TDPCW and/or the Clearing Broker will, before
closing your Account, deduct any unpaid fees, including those owed for ancillary services, including
paper delivery of documents, transfer of fund shares, or physical delivery of fund shares. There may be
other fees associated with the closing your account.
TDPCW is not responsible for changes in value of securities, as applicable, in a client’s account
between the time of termination and the communication of instructions regarding transfer or liquidation of
the client’s account. All requests will be processed according to TDPCW’s procedures and it may take
several business days to process a client’s request.
If a client enrolled in the Programs does not access his or her account for a period of 24 months or
more and the client is not responsive to any electronic communications from TDPCW, TDPCW reserves
the right to terminate the account in its sole discretion, sell the securities held in the account and send
a check for the value of the proceeds to the client’s address of record.