December 5, 2012

Report prepared by: Ryan Lewenza, CFA, CMT V.P., U.S. Equity Strategist

2013 U.S. Equity Outlook

Highlights

One would think that with fears of a European debt crisis, the prospect of a hard landing in China and the U.S. economy potentially going off the fiscal cliff that the U.S. equity markets would be down year to date. Instead, the S&P 500 Index (S&P 500) has advanced 12.6%. The Nasdaq Composite Index (Nasdaq), with the help of Apple Inc. (APPL-Q), rose an impressive 15.6%. Despite a number of headwinds, the U.S. equity markets climbed the proverbial wall of worry in 2012. For full-year 2013, our base case is for another year of modest economic growth, as continued deleveraging, high unemployment, and soon to be implemented government austerity provide headwinds to growth. TD Economics is forecasting real GDP growth of 2% in 2013, well below long-term trend growth of 3.3%. Combining our 2013 S&P 500 earnings forecast of $104.00 with a projected forward P/E ratio of 14.3x, our year-end target for the S&P 500 is 1,490, which implies a potential mid-single digit price return for 2013. Adding on a 2% dividend yield equates to a roughly 7% targeted total return for 2013. We believe the S&P 500 could trade in a range of 1,270-1,275 on the downside and 1,500-1,550 on the upside over the course of 2013. In our view, healthy corporate earnings, low interest rates, strong corporate balance sheets and reasonable valuations should help to provide a floor for the S&P 500. Conversely, we believe below-trend economic growth, deleveraging, and the continuation of the debt and austerity problems in Europe and the U.S., will act to provide a ceiling for the S&P 500 in 2013. From a sector perspective we continue to recommend an overweight in the information technology, health care and consumer staples sectors. We remain underweight the financials, consumer discretionary and telecom sectors. Energy, materials, industrials and utilities are at market weight.

This Document is for distribution to Canadian clients only. Please refer to Appendix A in this report for important information.

U.S. Equity Strategy

December 5, 2012

2013 U.S. Equity Outlook

One would think that with fears of a European debt crisis, the prospect of a hard landing in China and the U.S. economy potentially going off the fiscal cliff that the U.S. equity markets would be down year to date. Instead, the S&P 500 has advanced 12.6% (Exhibit 1). The Nasdaq Composite Index, with the help of Apple Inc. (APPL-Q), rose an impressive 15.6%. Despite a number of headwinds, the U.S. equity markets climbed the proverbial wall of worry in 2012. The Dow Jones Industrial Average has been the laggard (+6.6%), a clear sign of how important Apples return has been to broader indices such as the S&P 500 and Nasdaq. As earnings growth has slowed, growth has outperformed value by 120 bps and large caps have outperformed small caps by 150 bps year to date (Exhibit 1). Many wonder why the stock market has done as well as it has, given the myriad of risks present in todays new normal. In our view, the strong gains 2012 to date are in part a result of: 1) co-ordinated monetary stimulus by global central banks to help mitigate the effects of a slowing global economy, and 2) market participants realization that the coordinated efforts of central banks was working and a material global slowdown/recession would be avoided. Monetary and fiscal policy played an important role in 2012 and will likely play a crucial role in 2013.

Exhibit 1: Q4/12 Index Price Returns Indices Level QTD Return YTD Return S&P 500 1,416.0 -1.7% 12.6% Dow Jones Industrial 13,021.8 -3.1% 6.6% NASDAQ Composite 3,012.0 -3.3% 15.6% Small Cap (Russell 2000) 823.2 -1.7% 11.1% Growth (Russell 1000) 659.5 -1.6% 13.5% Value (Russell 1000) 703.1 -1.1% 12.3% S&P 500 Sectors Utilities 176.3 -4.6% -3.6% Consumer Staples 368.9 -0.3% 10.0% Health Care 464.1 -0.3% 15.5% Telecommunications 147.0 -6.5% 13.2% Information Technology 465.4 -5.9% 13.5% Consumer Discretionary 375.0 1.3% 21.5% Energy 530.4 -3.8% 1.8% Industrials 322.2 0.9% 10.2% Materials 230.6 -1.0% 8.9% Financials 211.9 0.9% 21.0%
Source: Baseline. As of November 29, 2012

Recap of 2012 Before we provide our detailed 2013 outlook, a review of some of our key market calls during 2012 is warranted. Some highlights include:

In December 2011, we provided a conservative 2012 price target for the S&P 500 of 1,220-1,270. In setting our price target we used a probability-weighted EPS estimate, embedding a 30% probability of a U.S. recession in 2012. In March 2012, as economic conditions improved, we increased our price target to 1,290-1,340. With the S&P 500 currently around 1,400, our forecast appears too conservative. In 2012 we consistently recommended investors overweight the health care and information technology sectors, which are up 15.5% and 13.5%, year to date respectively, and have outperformed the S&P 500. We made two timely calls with our downgrade of the utilities sector on January 27 from overweight to market weight (this has been the worst performing sector year to date) and the downgrade of the telecommunications sector to underweight in early October (the sector has declined 9% since then). Our worst calls this year were to underweight the consumer discretionary and financials sectors, which have advanced 21.5% and 21%, year to date respectively.

Exhibit 2: Recap of Key Market Calls in 2012

1,500 1,450 1,400 1,350 1,300 1,250
Jan 27 - Utilities downgraded from overweight to market weight Dec 20 - S&P 500 target set at 1,220-1,270 Oct 2 - Telecom downgraded from market weight to underweight Mar 30 - Increased S&P 500 target to 1,290-1,340 and downgraded telecom to market weight

S&P 500 Index

Jun 15 - Staples upgraded from market weight to overweight

1,200 Jan-12

Mar-12

May-12

Jul-12

Sep-12

Nov-12

Source: Bloomberg Finance L.P., Portfolio Advice & Investment Research (PAIR). As of November 30, 2012

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U.S. Equity Strategy

December 5, 2012

Economic Update
U.S. economic growth continues to be weak by historical standards, with U.S. GDP averaging 1.7% in H1/12. Weakening business spending, the negative impacts of the European debt crisis and the U.S. fiscal cliff (i.e., spending cuts and tax increases), and the expected economic hit from Hurricane Sandy, lead us to believe pace of economic growth is likely to be the same into year-end and early 2013. For full-year 2013, our base case is for another year of below-trend economic growth, as continued deleveraging, high unemployment, and soon to be implemented government austerity provide headwinds. TD Economics is forecasting real GDP growth of 2% in 2013, well below long-term trend growth of 3.3% (Exhibit 3). While economic forecasting is always a challenging endeavour, projections for 2013 are particularly difficult given the lack of clarity around the pending U.S. fiscal cliff. Both the Democrats and Republicans are working through this in an effort to push off some of this potential economic drag. TD Economics believes a deal will be done, and by their estimates, the fiscal drag is expected to be 1.5% for 2013 versus the estimated 4-5% if nothing is done and the tax increases and spending cuts are implemented. In their view, a recession will be avoided, with economic growth reaccelerating over the course of 2013. In the near-term we are watching our preferred economic indicator the Citigroup U.S. Economic Surprise Index as it appears close to a peak (Exhibit 3). This indicator captures the difference between expected and real economic data releases, and whether the data is beating or missing economists projections. Over the last few years, when the index has reached the current 70-80 level, it has typically rolled over as expectations become too elevated. If history repeats itself, we should begin to see weaker data prints relative to expectations, which could provide some near-term headwinds. We could then see a trough during the summer of 2013, as we saw in 2011 and 2012, followed by a reacceleration, which aligns with TD Economics forecast. Exhibit 3: Expect Modest Economic Growth in 2013; Possible Near-Term Peak in Economic Momentum
%

6 4 2 0
-0.3 1.4 4.0 2.3 2.2

U.S. GDP Q/Q Annualized

150
4.1 2.6 2.4 2.5 1.3 0.1 2.0 1.3 2.2 2.6 3.1

Citigroup U.S. Economic Surprise Index

100 50 0 -50
TD Economics Forecast

1.5

1.7

1.9

-2 -4 -6
-5.3

-100 -150

Q 2/ 10

Q 3/ 10

Q 3/ 09 Q 4/ 09

Q 1/ 10

Q 1/ 09 Q 2/ 09

Q 3/ 13 Q 4/ 13

Q 1/ 13 Q 2/ 13

Q 3/ 12 Q 4/ 12

Q 2/ 12

Q 4/ 11 Q 1/ 12

Q 2/ 11 Q 3/ 11

Q 4/ 10 Q 1/ 11

The Citigroup U.S. Surprise Index appears elevated and susceptible to future economic disappointments.
Jul-08 Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12

Source: Bloomberg Finance L.P., TD Economics. As of November 30, 2012

-200 Jan-08

Source: Bloomberg Finance L.P. As of November 30, 2012

While there are a number of headline risks to the U.S. economy, we see the U.S. housing market and auto sales, two important drivers of economic growth, holding up and possibly accelerating in 2013. As seen in Exhibit 4, U.S. national home prices as captured by the S&P/Case Shiller Home Price Index were up 3% Y/Y in September, and have posted positive price increases over the last four months. While still 29% below the peak level, home prices are starting to head in the right direction. U.S. existing home sales are also starting to recover with 4.79 million annualized homes sold in October, up from the trough of 3.39 million seen in 2010. U.S. auto sales which are running at 14.2 million annualized are well above the trough of 9 million in 2009. With the average age of U.S. vehicles at a record-high 11 years, we believe pent-up demand can push auto sales higher in 2013. The improvements in the U.S. housing market and auto sales should help to offset some of the expected weakness from government and corporate spending, resulting in another year of positive but weak economic growth, in our view. Exhibit 4: U.S. Housing Market and Auto Sales Showing Signs of Strength into 2013
(in millions) li d)

7.5 7.0 6.5 6.0 5.5 5.0 4.5 4.0 3.5 3.0

U.S. Housing

(in thousands) li d)

(in millions)

U.S. Auto Sales Total

250 200

24 22 20 18 16

150 100

14 12 10 While well off the peak of 16-20 million autos sales seen in the early 2000s, we are seeing a steady upward trend in current auto sales.

50
U.S. Existing Home Sales S&P/Case-Shiller Home Price Index

0 00 01 02 03 04 05 06 07 08 09 10 11 12

Source: Bloomberg Finance L.P. As of November 28, 2012

8 May-99

May-01

May-03

May-05

May-07

May-09

May-11

Source: Bloomberg Finance L.P. As of November 30, 2012

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U.S. Equity Strategy

December 5, 2012

Fundamental Update
In developing our fundamental outlook and 2013 price target for the S&P 500, we incorporate market cycle analysis into our fundamental work. One prominent market cycle is the four-year Presidential Cycle. This theory states that stock market returns are linked to a Presidents four-year term, with the stock market performing poorly in the early years and stronger in the later years. The rational behind this phenomenon is that Presidents implement the tougher policies early on in their administration, while implementing more accommodative polices in the later years, in an effort to get re-elected. While some question the validity of this market cycle, we believe the historical data support the theory. Dating back to 1900, the Dow Jones Industrial Average has posted average annual returns of 5.3%, 3.2%, 12.4% and 7.5% in years one through four of a Presidents term, respectively (Exhibit 5). Based on our work, the data does show a consistent trend of improving returns later in a Presidents term. Furthermore, the historical odds of a positive return in year one are 50%, which is the lowest of any year over this market cycle. All told, this theory points to modest positive returns in 2013. We forecast 2013 S&P 500 earnings of $104.00, which is well below the current bottom up consensus estimate of $114.75 (Exhibit 5). Our more conservative estimate is based on slower top line growth (3% versus 5% in 2012) and a modest decline in net profit margins. We continue to believe that analysts estimates remain too high given the challenging macro environment and could be revised downward. While our profit forecasts are more conservative, it is important to emphasize that we still see corporate earnings remaining healthy and thus supportive of equities. Exhibit 5: Presidential Cycle Points to Modest Returns in 2013; We Forecast Below Consensus EPS for 2013
4-Year Presidential Cycle Returns
$120

S&P 500 Earnings Forecast

$115 $110

14% 12% 10% 8% 6% 4% 2% 0% Year 1 Year 2 5.30% 3.20%

12.40%

PAIR Consensus

$114.75

7.50%

$105 $100 $95 $90

$103.76 $99.00 $96.29 $96.29

$104.00

Year 3

Year 4

$85 2011A 2012E 2013E

Source: Bloomberg Finance L.P., PAIR. As of November 30, 2012

Source: Bloomberg Finance L.P., PAIR Data is based on Dow Jones Industrials annual price returns from 1900 to present

In terms of valuation, the S&P 500 is trading at 14.4x trailing earnings, which is a 13% discount to the long-term average of 16.5x. Given our view that earnings forecasts appear too high, the current forward P/E of 13.6x looks cheap at first blush, but less so if earnings come in below current forward estimates (Exhibit 6). On a Price to Book Value (P/B) basis the S&P 500 trades at 2.1x, which is in line with its long-term historical average of 2x. All told, we would characterize current market valuations as moderately attractive heading into 2013. Combining our 2013 S&P 500 earnings forecast of $104.00 with a projected forward P/E ratio of 14.3x, we get a year-end target of 1,490, which implies a potential mid-single digit price return for 2013 (Exhibit 6). Adding on a 2% dividend yield equates to a roughly 7% targeted total return for 2013. If economic growth reaccelerates in H2/13, we see the potential for modest P/E expansion, hence our projected year-end P/E target of 14.3x. Exhibit 6: S&P 500 Valuations Look Moderately Attractive; S&P 500 2013 Price Target is Set at 1,490
16 15 14
Average Since 2010

S&P 500 Forward P/E

We're here $98 $100 $102 $104 $106 $108 $110 S & P 5 0 0 E a r n in g s

13 12 11 10 Jan-10 The S&P 500 currerntly trades at 13.5x forward earnings in line with its average since 2010 but below the long-term average of 15x. We see the potential for modest P/E expansion in 2013. Jul-10 Jan-11 Jul-11 Jan-12 Jul-12

12.0 1,176 1,200 1,224 1,248 1,272 1,296 1,320

S&P 500 Price Matrix Forward P/E 12.5 13.0 13.5 14.0 1,225 1,274 1,323 1,372 1,250 1,300 1,350 1,400 1,275 1,326 1,377 1,428 1,300 1,352 1,404 1,456 1,325 1,378 1,431 1,484 1,350 1,404 1,458 1,512 1,375 1,430 1,485 1,540

14.5 1,421 1,450 1,479 1,508 1,537 1,566 1,595

15.0 1,470 1,500 1,530 1,560 1,590 1,620 1,650

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Source: Bloomberg Finance L.P. As of November 30, 2012

Source: Portfolio Advice & Investment Research. As of November 30, 2012

U.S. Equity Strategy

December 5, 2012

Technical Update
While the S&P 500 has been in a bullish upward channel since the 2009 lows, it has not been without some significant draw downs and worrisome moments along the way (Exhibit 7). This year alone we saw two significant market corrections with the S&P 500 falling 11% in the Spring and 8% in the October-November period. The Spring sell-off was due in large part to mounting concerns over Europe and the ongoing debt crisis. The recent market correction was driven by concerns about the U.S. fiscal cliff. As we intimated earlier in the report, policy responses around these central issues will continue to be major drivers of the equity markets in 2013, and as such, we see the potential for increased volatility and short-term draw downs next year, similar to those experienced in 2012. With that said, we believe the S&P 500 could trade in a range of 1,270-1,275 on the downside and 1,500-1,550 on the upside over the year. In our view, healthy corporate earnings, low interest rates, strong corporate balance sheets and reasonable valuations should help to provide a floor for the S&P 500 should these macro issues intensify. Conversely, we believe below-trend economic growth, ongoing deleveraging, and the continuation of the macro headwinds (i.e., the European and U.S debt/austerity problems) will provide a ceiling to the S&P 500 in 2013. We do expect another year of gains for U.S. equities, however, it is likely to be a bumpy ride along the way, similar to previous years past. For much of the early 2000s the resource-heavy S&P/TSX Composite Index (S&P/TSX) outperformed the S&P 500 on the back of stronger commodity prices. However, since the commodity peak in 2008, just prior to the financial crisis, commodities have underperformed the S&P 500 (Exhibit 7), which in turn has lead to the S&P 500 outperforming the S&P/TSX. As of November 30th the S&P 500 was up 12.6% year to date compared to a 2.1% gain for the S&P/TSX and 10.2% decline in oil prices. Given our belief that the S&P 500 will continue to outperform commodities in 2013, we believe the U.S. equity market could once again out pace the S&P/TSX next year. As such, we believe Canadian investors should look more to the U.S. than they have in recent years, especially with the Canadian dollar at roughly par with the U.S. dollar. Exhibit 7: S&P 500 Range of 1,270/75 and 1,500/50 in 2013; S&P 500 Expected to Outperform Commodities Again
1,700 1,500
Long-term channel resistance at 1,600

S&P 500 Index

Technical Resistance is 2007 highs of 1500/50

CRB Index Relative to S&P 500 Index

0.40

0.35

Commodities continue to underperform the S&P 500.

1,300

0.30
1,100 900 700 500 Aug-06
Technical Support is 1,270/75

0.25

0.20

Aug-07

Aug-08

Aug-09

Aug-10

Aug-11

Aug-12

0.15 Jan-07

Jul-07

Dec-07

Jun-08

Dec-08

Jun-09

Dec-09

Jun-10

Dec-10

Jun-11

Dec-11

Jun-12

Source: Bloomberg Finance L.P. As of November 30, 2012

Source: Bloomberg Finance L.P. As of November 30, 2012

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Sector Recommendations
We have made no changes to our sector recommendations since our Q3/12 report. We continue to recommend a barbell approach, with a mix of defensive and cyclical sectors. Our sector recommendations are as follows: o Overweight: Information Technology, Consumer Staples and Health Care Our preferred cyclical sector is information technology given: 1) attractive valuations with the sector trading at a 40% discount to its long-term average (Exhibit 8), 2) strong balance sheets, 3) solid EPS growth profile (13% forecasted for 2013), and 4) supporting technicals with the Nasdaq having broken above 10-year price resistance of 2,850. The health care sector remains one of our favourite sectors given: 1) the sector is the cheapest sector within the S&P 500 at 11.3x trailing and forward earnings, 2) its strong earnings predictability and lower beta, 3) higher dividend yields, and 4) very strong technicals with the sector making new all-time highs. While the consumer staples sector is expensive trading at 17.8x trailing earnings (15.8x forward earnings) we like the sector for its growth characteristics, high dividend yields, and defensive nature. Underweight: Financials, Consumer Discretionary and Telecommunications Financials and consumer discretionary have performed very well in 2012, with both sectors up over 20% year to date. However, we remain cautious on the consumer discretionary sector given: 1) its lofty relative valuation; the sector is trading at 17.6x trailing earnings (15.5x forward) and valued at a 30% premium to the S&P 500, and 2) its high forecast EPS growth rate of 14% for 2013, which could be susceptible to downward revisions, in our view. Financials are on upgrade watch given attractive valuations (1.1x P/B) and improving technicals. We remain underweight for now. We downgraded the telecommunications sector in October to underweight, largely on valuation concerns (the sector trades at a 50% premium to its long-term average and is the most expensive sector within the S&P 500). Despite the sectors attractive dividend yield of 4.7%, we remain underweight. Market Weight: Energy, Industrials, Utilities and Materials Industrials remain at market weight given our below-trend growth expectations and Institute for Supply Management (ISM) readings hovering around the 50 level. To become more constructive on the sector we would like to see higher ISM readings in the coming months. Energy and materials remain at market weight given: 1) continued negative EPS revisions, 2) weak technical profiles, and 3) a stronger U.S. dollar. The utilities sector has come under pressure recently in part due to concerns over pending increases to dividend tax rates. With the sector trading at a slight premium to the S&P 500 and its weak EPS outlook (2% EPS growth projected for 2013) we are keeping the sector at market weight.

Exhibit 8: S&P 500 Sector Recommendations and Valuations Sector Sector Price Dividend Name Weight Recommendation 29-Nov-12 Yield Financials 15.0% Underweight 211.95 1.8% Consumer Discretionary 11.4% Underweight 375.02 1.5% Industrials 10.1% Market weight 322.25 2.4% Materials 3.5% Market weight 230.62 2.3% Information Technology 19.2% Overweight 465.45 1.2% Energy 11.0% Market weight 530.38 2.1% Health Care 12.2% Overweight 464.06 2.1% Consumer Staples 11.0% Overweight 368.94 2.8% Utilities 3.4% Market weight 176.35 4.2% Telecommunications 3.1% Market weight 146.98 4.7% S&P 500 1,415.95 2.1%

Trail 11.5 17.6 13.9 15.6 13.1 11.4 13.4 17.8 14.2 20.6 13.8

P/E P/E Rel to Forward 10 Yr Avg 10.9 0.70 15.5 0.80 13.3 0.80 13.4 0.80 12.3 0.60 11.3 0.90 13.1 0.80 15.8 1.00 14.4 1.00 18.2 1.30 13.4 0.90

EPS Growth Rate 2013/12 5 Yr Future 12% 10% 14% 15% 11% 11% 22% 7% 13% 14% 8% 7% 7% 8% 8% 9% 2% 2% 23% 8% 7% -

Source: Bloomberg Finance L.P., Baseline, Portfolio Advice & Investment Research. As of November 29, 2012

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U.S. Equity Strategy

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Conclusion Next year will mark the fifth year of the recovery from the 2008/09 financial crisis. During this time the U.S. economy has been healing, which we believe is necessary to provide the foundation for the next secular bull equity cycle, which we expect to begin over the next few years. The U.S. consumer has begun to address its large debt loads, with household debt to disposable income declining from a high of 134% in 2007 to its current 113%. U.S. corporations have improved their balance sheets, such that debt ratios are low and there is a record $1.7 trillion in cash on their balance sheets. U.S. banks have also strengthened their capital positions. Finally, the U.S. housing market is beginning to show signs of real improvement. However, there remain a number of risks to the global economy, notably high developed world government debt and ongoing deleveraging, which should continue to provide headwinds to growth. All told, we see positive but more modest U.S. equity returns in 2013, as the positives outlined outweigh the negatives that exist.

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Appendix A Important Disclosures

Technical Research Disclaimer The opinions expressed herein reflect a technical perspective and may differ from fundamental research on these issuers. Fundamental research can be obtained through your TD Waterhouse Investment Advisor or on the Markets and Research site within WebBroker. The technical research opinions contained in this report are based on historical technical data and expectations of the most likely direction of a market or security. No guarantee of that outcome is ever implied. Research Dissemination Policy TD Waterhouse makes its research products available in electronic format. TD Waterhouse posts its research products to its proprietary websites for all eligible clients to access by password and distributes the information to its sales personnel who may then distribute it to their retail clients under the appropriate circumstances either by email, fax or regular mail. No recipient may pass on to any other person, or reproduce by any means, the information contained in this report without the prior written consent of TD Waterhouse. Analyst Certification The TD Waterhouse Portfolio Advice & Investment Research analyst(s) responsible for this report hereby certify that (i) the recommendations and technical research opinions expressed in the research report accurately reflect the personal views of the analyst(s) about any and all of the securities or issuers discussed herein and (ii) no part of the research analyst's compensation was, is, or will be, directly or indirectly, related to the provision of specific recommendations or views contained in the research report. Conflicts of Interest The TD Waterhouse Portfolio Advice & Investment Research analyst(s) responsible for this report may own securities of the issuer(s) discussed in this report. As with most other TD Waterhouse employees, the analyst(s) who prepared this report are compensated based upon (among other factors) the overall profitability of TD Waterhouse and its affiliates, which includes the overall profitability of investment banking services, however TD Waterhouse does not compensate analysts based on specific investment banking transactions. TD Waterhouse Disclaimer The statements and statistics contained herein are based on material believed to be reliable, but are not guaranteed to be accurate or complete. This report is for information purposes only and is not an offer or solicitation with respect to the purchase or sale of any investment fund, security or other product. Particular investments or trading strategies should be evaluated relative to each individuals objectives. Graphs and charts are used for illustrative purposes only and do not reflect future values or future performance. This document does not provide individual, financial, legal, investment or tax advice. Please consult your own legal, investment, and tax advisor. All opinions and other information included in this document are subject to change without notice. The Toronto-Dominion Bank and its affiliates and related entities are not liable for any errors or omissions in the information or for any loss or damage suffered. TD Waterhouse Canada Inc. and/or its affiliated persons or companies may hold a position in the securities mentioned, including options, futures and other derivative instruments thereon, and may, as principal or agent, buy or sell such securities. Affiliated persons or companies may also make a market in and participate in an underwriting of such securities. TD Waterhouse represents the products and services offered by TD Waterhouse Canada Inc. (Member Canadian Investor Protection Fund), TD Waterhouse Private Investment Counsel Inc., TD Waterhouse Private Banking (offered by The Toronto-Dominion Bank) and TD Waterhouse Private Trust (offered by The Canada Trust Company). TD Securities Disclaimer TD Securities is the trade name which TD Securities Inc. and TD Securities (USA) LLC jointly use to market their institutional equity services. TD Securities is a trade-mark of The Toronto-Dominion Bank representing TD Securities Inc., TD Securities (USA) LLC, TD Securities Limited and certain corporate and investment banking activities of The Toronto-Dominion Bank. Page 8

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Trade-mark Disclosure Bloomberg and Bloomberg.com are trademarks and service marks of Bloomberg Finance L.P., a Delaware limited partnership, or its subsidiaries. All rights reserved. All trademarks 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 in other countries.

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