TD MMFs File N-CR Pre-Liquidation
The SEC's 2016 Money Market Fund Reforms included a mandate to file Form N-CR whenever financial support is provided to a money fund. While we still have yet to see any true money fund bailouts, we have seen a handful of filings to "top-up" money fund NAVs before liquidations or mergers. The latest filings we've found are from the TD Money Market Funds, which provided small capital contributions before they were liquidated. (See our Aug. 2, 2018 News, "MFS U.S. Govt MMF Files Form N-CR," and our Oct. 15, 2018 Link of the Day, "TDAM Liquidating Money Funds.") Separate but similar filings for the TD Money Market Portfolio, TD U.S. Government Portfolio, TD Municipal Portfolio, TD California Municipal Money Market Portfolio, and TD New York Municipal Money Market Portfolio tell us, "Description of nature of support: Provision of capital contribution to increase the net asset value per share to $1.0000 in connection with the upcoming liquidation of TD U.S. Government Portfolio, a series of the Registrant.... Person providing support: TDAM USA Inc.... TDAM USA Inc. is the investment adviser to the Portfolio.... Date support provided: November 16, 2018.... Amount of support: $82,028.28. Item C.6 Security supported (if applicable). Disclose the name of the issuer, the title of the issue (including coupon or yield, if applicable) and at least two identifiers, if available (e.g., CUSIP, ISIN, CIK, LEI): Not Applicable. Item C.7 Value of the security supported on date support was initiated (if applicable): Not Applicable. Item C.8 Brief description of reason for support: The support related to the upcoming liquidation of the Portfolio, and was made to offset the historical losses previously realized by the Portfolio. The amount of the financial support is equal to the difference between the Portfolio’s net assets and the net asset value per share of $1.0000 multiplied by the number of shares outstanding so that shareholder interests are not diluted and all shareholders receive the same value upon the Portfolio's liquidation or in redemptions made following the financial support, but prior to the liquidation." TD's previous Prospectus Supplements said, "On September 26, 2018, the Board of Directors (the 'Board') of TD Asset Management USA Funds Inc. (the 'Company') approved the liquidation of each of the TD Money Market Portfolio, TD U.S. Government Portfolio, TD Municipal Portfolio, TD California Municipal Money Market Portfolio and TD New York Municipal Money Market Portfolio, each a series of the Company, pursuant to the terms of a Plan of Liquidation for each Portfolio. The approval by the Board of the liquidations was based on the recommendation of TDAM USA Inc., the Portfolios' investment adviser ('TDAM'), which has determined that the Portfolios are no longer viable from a business and economic perspective. Under its Plan of Liquidation, each Portfolio will be liquidated on or about November 19, 2018 (the 'Liquidation Date')."
