Toronto-Dominion Bank today announced the launch of the TD Dividend Growth Fund-Linked Principal Protected Notes, Series 1 and Series 1NL (Total Return).

Structured by TD Securities Inc., the notes are linked to the TD Dividend Growth Fund, one of the largest and most well-established TD Mutual Funds. Managed by Doug Warwick and Michael Lough of TD Asset Management Inc., the fund invests primarily in high-quality, high-yield equity securities and other income-producing instruments of Canadian issuers.

The notes use a dynamic asset allocation strategy designed to provide increased exposure to the Fund when performance is up and reduced exposure when performance is down. The notes are also designed to provide up to 150% exposure to the fund through the use of leverage. Investors will benefit from 100% principal protection if they hold the notes until maturity.

The selling period for the notes is February 4 to March 20, with an issue date of March 27. The notes have a term of 7.25 years, maturing on June 29, 2015.