Semi Annual Financial Reports - TD Asset Management

TD Global Low Volatility Fund

for the period ended June 30, 2018

TD Mutual Funds

Semi-Annual Financial Report

(08/18)532102

June 30, 2018 Semi-Annual Financial Report

nManagement’s Responsibility for Financial Reporting

The accompanying unaudited interim financial report has been prepared by TD Asset Management Inc. (“TDAM”), as manager of the TD MutualFund Trusts, TD Managed Assets Program Portfolios and TD Managed ETF Portfolios (collectively the “Funds” and individually the “Fund”) andapproved by TDAM’s board of directors. The manager is responsible for theintegrity, objectivity and reliability of the data presented. This responsibilityincludes selecting appropriate accounting principles and making judgmentsand estimates consistent with International Financial Reporting Standards(“IFRS”). The manager is also responsible for the development of internalcontrols over the financial reporting process, which are designed toprovide reasonable assurance that relevant and reliable financial informa -tion is produced, and the safeguarding of all assets of the Funds.

The board of directors of TDAM, is responsible for reviewing and approvingthe interim financial report and overseeing management’s performance ofits financial reporting responsibilities.

On behalf of TDAM, manager of the Funds.

Bruce Cooper David LambieDirector and Director andChief Executive Officer Chief Financial OfficerAugust 15, 2018 August 15, 2018

nNotice to UnitholdersThe Auditor of the Funds has not reviewed the TD Mutual Fund Trusts in this Financial Report

TDAM, as manager of the Funds, appoints an independent auditor to audit the Funds’ annual financial statements. Applicable securities lawsrequire that if an auditor has not reviewed the Funds’ interim financialreport, this must be disclosed in an accompanying notice.

1


nTD Global Low Volatility FundStatements of Financial Position (in 000s except per unit amounts)

as at June 30, 2018 and December 31, 2017 (Unaudited)

June 30, December 31, 2018 2017

AssetsCurrent AssetsInvestments $ 7,208,775 $ 8,021,192Cash 29,132 25,531Dividends Receivable 17,257 18,172Subscriptions Receivable 8,493 1,576Receivable for Investments Sold 0 1,412Tax Reclaims Receivable 0 2Derivative AssetsUnrealized Appreciation on Open Foreign Exchange Forward Contracts 15,715 11,218

7,279,372 8,079,103

LiabilitiesCurrent LiabilitiesAccrued Liabilities 168 163Redemptions Payable 5,353 8,445Distributions Payable 115 0

5,636 8,608

Net Assets Attributable to Holders of Redeemable Units $ 7,273,736 $ 8,070,495

Net Assets Attributable to Holders of Redeemable Units – Per Series (Note 5)Investor Series $ 253,690 $ 252,047Premium Series $ 20,066 $ 26,083Advisor Series $ 308,699 $ 300,714F-Series $ 216,526 $ 199,762Premium F-Series $ 33,864 $ 37,930H-Series $ 1,747 $ 1,445S-Series $ 5,696 $ 4,352T-Series $ 15,198 $ 14,023D-Series $ 4,063 $ 3,199Private Series $ 582,779 $ 583,786O-Series $ 5,831,408 $ 6,647,154

$ 7,273,736 $ 8,070,495

Net Assets Attributable to Holders of Redeemable Units – Per Series Unit

Investor Series $ 18.80 $ 18.64

Premium Series $ 14.25 $ 14.12

Advisor Series $ 18.74 $ 18.58

F-Series $ 19.42 $ 19.12

Premium F-Series $ 14.63 $ 14.39

H-Series $ 14.78 $ 15.25

S-Series $ 15.40 $ 15.78

T-Series $ 14.81 $ 15.29

D-Series $ 11.43 $ 11.28

Private Series $ 11.70 $ 11.46

O-Series $ 19.06 $ 18.66

The accompanying notes are an integral part of the interim financial report.

2


nTD Global Low Volatility FundStatements of Comprehensive Income (in 000s except per unit amounts)

for the periods ended June 30, 2018 and 2017 (Unaudited)

2018 2017

IncomeForeign Exchange Gain (Loss) on Cash $ (863) $ (256)Securities Lending Income 1,622 1,249Net Gain (Loss) on Investments and DerivativesNet Gain (Loss) on InvestmentsInterest for Distribution Purposes 152 1,173Dividend Income 139,813 145,934Net Realized Gain (Loss) 386,539 97,158Net Change in Unrealized Appreciation/Depreciation (326,866) 95,937

Net Gain (Loss) on Investments 199,638 340,202Net Gain (Loss) on DerivativesNet Realized Gain (Loss) (14,989) (36,363)Net Change in Unrealized Appreciation/Depreciation 4,496 7,040

Net Gain (Loss) on Derivatives (10,493) (29,323)

Total Net Gain (Loss) on Investments and Derivatives 189,145 310,879

Total Income (Net) 189,904 311,872

Expenses (Note 6)Management Fees 7,583 6,905Securityholder Reporting Costs 23 28Custodial Fees 21 16Filing Fees 1 1Administration Fees 1,007 917Audit Fees 1 1Independent Review Committee Fees 1 1Transaction Costs 2,259 1,467Interest Charges 2 2

Total Expenses before Waivers 10,898 9,338Less: Waived Expenses (3) (3)

Total Expenses (Net) 10,895 9,335

Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units before Tax 179,009 302,537

Tax Reclaims (Withholding Taxes) (13,373) (13,233)

Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units $ 165,636 $ 289,304

2018 2017

Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units – Per SeriesInvestor Series $ 2,257 $ 5,729Premium Series $ 207 $ 826Advisor Series $ 2,662 $ 8,472F-Series $ 3,318 $ 4,118Premium F-Series $ 601 $ 1,479H-Series $ 10 $ 29S-Series $ 76 $ 150T-Series $ 118 $ 328D-Series $ 53 $ 79Private Series $ 12,160 $ 22,191O-Series $ 144,174 $ 245,903

$ 165,636 $ 289,304

Weighted Average Units Outstanding for the Period – Per Series

Investor Series 13,740 12,083

Premium Series 1,697 1,988

Advisor Series 16,368 16,068

F-Series 10,693 7,992

Premium F-Series 2,501 2,763

H-Series 105 62

S-Series 311 230

T-Series 1,000 756

D-Series 321 252

Private Series 50,245 49,929

O-Series 347,650 336,834

Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units – Per Series Unit

Investor Series $ 0.16 $ 0.47

Premium Series $ 0.12 $ 0.42

Advisor Series $ 0.16 $ 0.53

F-Series $ 0.31 $ 0.52

Premium F-Series $ 0.24 $ 0.54

H-Series $ 0.10 $ 0.47

S-Series $ 0.25 $ 0.65

T-Series $ 0.12 $ 0.43

D-Series $ 0.17 $ 0.31

Private Series $ 0.24 $ 0.44

O-Series $ 0.41 $ 0.73


3


Statements of Changes in Net Assets Attributable to Holders of Redeemable Units (in 000s)


Investor Series Premium Series Advisor Series

2018 2017 2018 2017 2018 2017

Net Assets Attributable to Holders of Redeemable Units at Beginning of the Period $ 252,047 $ 202,136 $ 26,083 $ 24,973 $ 300,714 $ 283,573

Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units 2,257 5,729 207 826 2,662 8,472

Distributions to Holders of Redeemable Units 0 0 0 0 0 0

Redeemable Unit TransactionsProceeds from Redeemable Units Issued 44,267 55,180 0 6,611 43,105 37,254Reinvestments of Distributions to Holders of Redeemable Units 0 0 0 0 (1) 0

Early Redemption Fees on Redeemable Units 0 0 0 0 0 0Redemption of Redeemable Units (44,881) (31,121) (6,224) (5,540) (37,781) (41,976)

Net Increase (Decrease) from Redeemable Unit Transactions (614) 24,059 (6,224) 1,071 5,323 (4,722)

Net Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units 1,643 29,788 (6,017) 1,897 7,985 3,750

Net Assets Attributable to Holders of Redeemable Units at End of the Period $ 253,690 $ 231,924 $ 20,066 $ 26,870 $ 308,699 $ 287,323

Redeemable Unit TransactionsRedeemable Units Outstanding, Beginning of the Period 13,525 11,563 1,847 1,882 16,187 16,258

Redeemable Units Issued 2,367 3,032 0 486 2,314 2,062Redeemable Units Issued on Reinvestments 0 0 0 0 0 0Redeemable Units Redeemed (2,397) (1,718) (439) (404) (2,027) (2,329)

Redeemable Units Outstanding, End of the Period 13,495 12,877 1,408 1,964 16,474 15,991

F-Series Premium F-Series H-Series

2018 2017 2018 2017 2018 2017


Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units 3,318 4,118 601 1,479 10 29

Distributions to Holders of Redeemable Units 0 0 0 0 (65) (38)

Redeemable Unit TransactionsProceeds from Redeemable Units Issued 50,985 67,977 0 6,393 782 513Reinvestments of Distributions to Holders of Redeemable Units 0 0 0 0 38 21

Early Redemption Fees on Redeemable Units 0 0 0 0 0 0Redemption of Redeemable Units (37,539) (23,213) (4,667) (5,299) (463) (465)

Net Increase (Decrease) from Redeemable Unit Transactions 13,446 44,764 (4,667) 1,094 357 69

Net Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units 16,764 48,882 (4,066) 2,573 302 60


Redeemable Unit TransactionsRedeemable Units Outstanding, Beginning of the Period 10,449 7,047 2,636 2,585 95 66

Redeemable Units Issued 2,644 3,634 0 463 52 32Redeemable Units Issued on Reinvestments 0 0 0 0 2 1Redeemable Units Redeemed (1,946) (1,253) (321) (375) (31) (29)

Redeemable Units Outstanding, End of the Period 11,147 9,428 2,315 2,673 118 70

nTD Global Low Volatility Fund


4


Statements of Changes in Net Assets Attributable to Holders of Redeemable Units (in 000s)


S-Series T-Series D-Series

2018 2017 2018 2017 2018 2017


Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units 76 150 118 328 53 79

Distributions to Holders of Redeemable Units (202) (148) (620) (471) 0 0

Redeemable Unit TransactionsProceeds from Redeemable Units Issued 1,794 1,084 4,110 2,407 1,272 935Reinvestments of Distributions to Holders of Redeemable Units 46 38 137 115 0 0

Early Redemption Fees on Redeemable Units 0 0 0 0 0 0Redemption of Redeemable Units (370) (1,627) (2,570) (1,419) (461) (522)

Net Increase (Decrease) from Redeemable Unit Transactions 1,470 (505) 1,677 1,103 811 413

Net Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units 1,344 (503) 1,175 960 864 492


Redeemable Unit TransactionsRedeemable Units Outstanding, Beginning of the Period 276 272 917 740 284 240

Redeemable Units Issued 115 67 270 153 111 84Redeemable Units Issued on Reinvestments 3 2 9 7 0 0Redeemable Units Redeemed (24) (100) (170) (90) (40) (48)

Redeemable Units Outstanding, End of the Period 370 241 1,026 810 355 276

Private Series O-Series TOTAL

2018 2017 2018 2017 2018 2017

Net Assets Attributable to Holders of Redeemable Units at Beginning of the Period $ 583,786 $ 509,144 $ 6,647,154 $ 5,810,778 $ 8,070,495 $ 7,010,752

Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units 12,160 22,191 144,174 245,903 165,636 289,304

Distributions to Holders of Redeemable Units 0 0 0 0 (887) (657)

Redeemable Unit TransactionsProceeds from Redeemable Units Issued 56,867 115,034 210,720 485,497 413,902 778,885Reinvestments of Distributions to Holders of Redeemable Units 0 0 0 0 220 174

Early Redemption Fees on Redeemable Units 0 0 0 1 0 1Redemption of Redeemable Units (70,034) (62,899) (1,170,640) (175,535) (1,375,630) (349,616)

Net Increase (Decrease) from Redeemable Unit Transactions (13,167) 52,135 (959,920) 309,963 (961,508) 429,445

Net Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units (1,007) 74,326 (815,746) 555,866 (796,759) 718,092

Net Assets Attributable to Holders of Redeemable Units at End of the Period $ 582,779 $ 583,470 $ 5,831,408 $ 6,366,644 $ 7,273,736 $ 7,728,843

Redeemable Unit TransactionsRedeemable Units Outstanding, Beginning of the Period 50,951 47,378 356,203 332,096

Redeemable Units Issued 4,916 10,296 11,208 26,452Redeemable Units Issued on Reinvestments 0 0 0 0Redeemable Units Redeemed (6,051) (5,617) (61,384) (9,705)

Redeemable Units Outstanding, End of the Period 49,816 52,057 306,027 348,843



5


nTD Global Low Volatility FundStatements of Cash Flows (in 000s)


2018 2017

Cash Flows from (used in) Operating ActivitiesIncrease (Decrease) in Net Assets Attributable to Holders of Redeemable Units $ 165,636 $ 289,304

Adjustment For:Unrealized Foreign Exchange (Gain) Loss on Cash 38 97Net Realized (Gain) Loss on Sale of Investments and Derivatives (371,550) (60,795)

Net Change in Unrealized Appreciation/Depreciation of Investments and Derivatives 322,370 (102,977)

Purchase of Investments and Derivatives (931,531) (1,101,137)Proceeds from Sale and/or Maturity of Investments and Derivatives 1,789,988 592,891

(Increase) Decrease in Dividends Receivable 970 (12,435)Increase (Decrease) in Accrued Liabilities 5 1,185(Increase) Decrease in Tax Reclaims Receivable 2 0

Net Cash from (used in) Operating Activities 975,928 (393,867)

Cash Flows from (used in) Financing ActivitiesDistributions Paid to Holders of Redeemable Units, Net of Reinvested Distributions (552) (398)

Proceeds from Issuances of Redeemable Units 383,998 733,624Amounts Paid on Redemption of Redeemable Units, Net of Early Redemption Fees (1,355,735) (332,013)

Net Cash from (used in) Financing Activities (972,289) 401,213

Unrealized Foreign Exchange Gain (Loss) on Cash (38) (97)Net Increase (Decrease) in Cash 3,639 7,346Cash (Bank Overdraft) at Beginning of the Period 25,531 27,865

Cash (Bank Overdraft) at End of the Period $ 29,132 $ 35,114

Interest for Distribution Purposes Received*, Net of Withholding Taxes $ 152 $ 1,173

Dividends Received*, Net of Withholding Taxes $ 127,435 $ 120,294

* Included as part of Cash Flows from (used in) Operating Activities.


6


Canadian Equities – 9.9%

ENERGY – 0.6%

255,600 Imperial Oil Limited $ 11,194 $ 11,170 623,100 Inter Pipeline Ltd. 17,897 15,353 401,100 Vermilion Energy Inc. 18,007 19,016

47,098 45,539

CONSUMER DISCRETIONARY – 0.7%

116,100 Canadian Tire Corporation Limited, Class A NV 19,976 19,923

163,300 Gildan Activewear Inc. 6,326 6,047 811,300 Shaw Communications Inc., Class B NV 20,191 21,726

46,493 47,696

CONSUMER STAPLES – 0.3%

132,200 Empire Company Limited, Class A 2,583 3,489 12,200 George Weston Limited 839 1,309 446,800 METRO Inc. 13,197 19,967

16,619 24,765

FINANCIALS – 5.4%

646,600 Bank of Montreal 43,634 65,708 120,600 The Bank of Nova Scotia 6,710 8,978 524,000 Canadian Imperial Bank of Commerce 47,980 59,925 2,162,300 CI Financial Corp. 64,795 51,095 564,400 Intact Financial Corporation 40,972 52,630 420,900 National Bank of Canada 16,564 26,567 473,600 Power Corporation of Canada, SV 14,005 13,943 609,700 Royal Bank of Canada 51,863 60,354 1,001,500 Sun Life Financial Inc. 48,945 52,909

335,468 392,109

TELECOMMUNICATION SERVICES – 1.9%

1,084,760 BCE Inc. 54,402 57,753 802,400 Rogers Communications Inc., Class B 37,432 50,102 704,200 TELUS Corporation 23,226 32,886

115,060 140,741

UTILITIES – 0.1%

184,000 Canadian Utilities Limited, Class A 6,116 6,109

ROYALTY/INCOME TRUSTS – 0.9%

1,961,165 H&R Real Estate Investment Trust 41,926 39,458 1,004,500 RioCan Real Estate Investment Trust 26,651 24,259

68,577 63,717

Total Canadian Equities 635,431 720,676

U.S. Equities – 38.6%

ENERGY – 2.1%

596,500 Exxon Mobil Corporation 60,197 64,876 771,500 Occidental Petroleum Corporation 62,957 84,873

123,154 149,749

MATERIALS – 3.6%

204,300 Avery Dennison Corporation 25,085 27,422 240,500 Celanese Corporation, Series A 28,410 35,114 104,100 Crown Holdings Inc. 7,512 6,126 419,000 Eastman Chemical Company 43,052 55,062 370,200 LyondellBasell Industries NV, Class A 46,068 53,462 285,000 Praxair Inc. 37,976 59,255 394,200 Sealed Air Corporation 23,860 21,999

211,963 258,440

INDUSTRIALS – 8.2%

94,400 3M Company 12,939 24,413 425,900 AGCO Corporation 37,337 33,998 101,800 AMETEK Inc. 5,528 9,657 440,900 CH Robinson Worldwide Inc. 25,469 48,492 96,200 Cummins Inc. 20,675 16,820 650,200 Emerson Electric Company 45,804 59,100 392,500 Expeditors International of Washington Inc. 32,673 37,720 145,600 Fastenal Company 8,821 9,213 216,600 JB Hunt Transport Services Inc. 31,668 34,612 118,524 Lockheed Martin Corporation 13,400 46,033 115,500 PACCAR Inc. 10,226 9,408 567,100 Republic Services Inc. 40,104 50,965 80,100 Stanley Black & Decker Inc. 10,507 13,985 415,000 United Parcel Service Inc., Class B 53,871 57,957 136,200 W.W. Grainger Inc. 36,381 55,221 262,250 Waste Connections Inc. 23,043 25,954 745,800 Xylem Inc. 53,726 66,064

462,172 599,612

CONSUMER DISCRETIONARY – 4.6%

298,200 Genuine Parts Company 22,616 35,984 79,700 Hasbro Inc. 2,967 9,672 339,400 McDonald’s Corporation 33,730 69,914 225,800 NIKE Inc., Class B 5,544 23,653 6,700 NVR Inc. 27,390 26,163 84,400 PVH Corp. 10,998 16,613 528,300 The TJX Companies Inc. 26,179 66,105 503,100 Twenty-First Century Fox Inc., Class B 19,582 32,587 340,400 VF Corporation 13,176 36,481 198,300 Yum! Brands Inc. 21,271 20,392

183,453 337,564

CONSUMER STAPLES – 8.1%

517,025 Brown-Forman Corporation, Class B 17,049 33,312 97,200 Campbell Soup Company 7,752 5,180 368,800 Church & Dwight Company Inc. 9,592 25,774 215,000 The Clorox Company 16,966 38,228 589,100 The Coca-Cola Company 23,237 33,968 520,500 Colgate-Palmolive Company 30,838 44,348 1,230,800 ConAgra Brands Inc. 63,758 57,814 369,700 General Mills Inc. 14,214 21,512 294,400 The Hershey Company 36,916 36,017 754,100 Hormel Foods Corporation 10,979 36,889 76,300 Ingredion Incorporated 12,477 11,104 413,500 Kellogg Company 22,857 37,982 199,600 Kimberly-Clark Corporation 15,497 27,642 364,000 PepsiCo Inc. 30,460 52,098 526,500 The Procter & Gamble Company 48,049 54,030 837,600 Sysco Corporation 39,407 75,198

400,048 591,096

HEALTH CARE – 0.7%

19,900 AmerisourceBergen Corporation 2,166 2,231 319,100 Eli Lilly & Company 14,585 35,796 91,800 Universal Health Services Inc. 13,625 13,449

30,376 51,476

FINANCIALS – 7.3%

1,808,600 AGNC Investment Corp. 45,279 44,201 378,300 Ally Financial Inc. 9,923 13,065 31,900 American Financial Group Inc. 4,547 4,501 3,795,000 Annaly Capital Management Inc. 50,515 51,338 362,500 Cincinnati Financial Corporation 13,923 31,863 59,300 Discover Financial Services 2,937 5,489 992,000 Loews Corporation 48,732 62,964 625,000 Marsh & McLennan Companies Inc. 26,944 67,351

$ $

nTD Global Low Volatility FundSchedule of Investment Portfolio (in 000s except number of Shares

or Units/Par Value) as at June 30, 2018 (Unaudited)

No. of Shares or Units/ Par Value Description Cost Fair Value


7

1,446,300 People’s United Financial Inc. 26,409 34,396 529,900 The Progressive Corporation 29,379 41,206 199,100 Reinsurance Group of America

Incorporated 33,689 34,938 286,600 T. Rowe Price Group Inc. 28,565 43,740 551,400 Torchmark Corporation 37,217 59,014 406,100 W. R. Berkley Corporation 15,254 38,658

373,313 532,724

INFORMATION TECHNOLOGY – 2.0%

43,500 Arrow Electronics Inc. 4,328 4,305 158,100 Automatic Data Processing Inc. 8,727 27,881 14,300 Fidelity National Information Services Inc. 366 1,993 355,700 Motorola Solutions Inc. 44,663 54,417 589,400 Paychex Inc. 29,167 52,961 31,300 Synopsys Inc. 1,036 3,521

88,287 145,078

TELECOMMUNICATION SERVICES – 0.3%

350,600 Verizon Communications Inc. 18,161 23,189

UTILITIES – 1.7%

74,900 Alliant Energy Corp. 1,682 4,167 326,100 American Water Works Company Inc. 12,368 36,603 1,086,800 CenterPoint Energy Inc. 31,915 39,591 104,700 DTE Energy Company 6,233 14,264 34,000 Pinnacle West Capital Corporation 1,805 3,601 110,000 Public Service Enterprise Group Inc. 3,750 7,829 266,300 Xcel Energy Inc. 7,118 15,992

64,871 122,047

Total U.S. Equities 1,955,798 2,810,975

International Equities – 50.3%

AUSTRALIA – 2.8%

2,571,087 Amcor Limited 37,893 36,014 1,372,813 Aurizon Holdings Limited 5,454 5,772 191,923 Brambles Limited 2,292 1,656 3,364,859 Dexus 20,581 31,796 3,625,182 The GPT Group 16,228 17,832 980,939 Sonic Healthcare Limited 19,540 23,393 19,761,487 Telstra Corporation Limited 83,662 50,248 299,631 Woodside Petroleum Ltd. 8,600 10,323 832,698 Woolworths Group Ltd. 21,208 24,722

215,458 201,756

AUSTRIA – 0.1%

75,007 OMV AG 4,145 5,577

BELGIUM – 1.0%

451,268 Colruyt SA 30,006 33,857 1,440,538 Proximus SADP 49,426 42,596

79,432 76,453

BERMUDA – 1.3%

1,068,900 Arch Capital Group Ltd. 13,958 37,182 187,600 Everest Re Group Ltd. 29,842 56,843

43,800 94,025

BRAZIL – 0.2%

1,480,400 Ambev SA 9,588 9,029 483,500 EDP – Energias do Brasil SA 3,533 2,250

13,121 11,279

CHILE – 0.0%

3,869,644 Banco de Chile 509 786

$ $


CHINA – 0.1%

2,750,400 China Petroleum & Chemical Corporation, Class H 2,347 3,237

424,000 China Shenhua Energy Company Limited 1,305 1,318 4,024,000 China Telecom Corporation Limited,

Class H 2,208 2,482

5,860 7,037

DENMARK – 1.1%

1,540,939 William Demant Holding AS 27,110 81,299

FINLAND – 0.4%

435,435 Elisa OYJ 21,260 26,446

FRANCE – 1.0%

111,372 Eiffage SA 15,343 15,907 48,114 Societe BIC SA 5,255 5,865 641,493 TOTAL SA 43,422 51,213

64,020 72,985

GERMANY – 0.7%

63,583 Fresenius Medical Care AG & Co. KGaA 4,495 8,417 247,710 Hannover Ruck SE 22,377 40,485

26,872 48,902

HONG KONG – 3.5%

1,468,000 China Mobile Limited 15,853 17,124 3,149,500 CK Infrastructure Holdings Ltd. 20,521 30,651 4,254,500 CLP Holdings Limited 37,904 60,246 9,906,000 Guangdong Investment Limited 8,638 20,611 132,400 Hang Seng Bank Limited 1,777 4,346 2,921,500 Link Real Estate Investment Trust 22,427 35,025 7,310,000 MTR Corporation Limited 29,397 53,083 556,000 Power Assets Holdings Limited 5,263 5,110 1,908,500 Swire Pacific Limited, Class A 27,143 26,520

168,923 252,716

ISRAEL – 0.2%

97,000 Check Point Software Technologies Ltd. 13,213 12,456

ITALY – 0.8%

991,787 Eni SpA 23,980 24,175 3,048,469 Snam SpA 18,300 16,702 2,463,274 Terna SpA 17,694 17,489

59,974 58,366

JAPAN – 12.1%

197,300 ABC-MART Inc. 13,908 14,177 126,700 Air Water Inc. 1,613 3,055 912,000 Asahi Kasei Corporation 4,652 15,204 34,400 Benesse Holdings Inc. 1,627 1,604 1,364,200 Canon Inc. 53,693 58,810 44,500 Daito Trust Construction Company Ltd. 9,883 9,517 319,000 Hankyu Hanshin Holdings Inc. 8,689 16,846 74,300 Hoya Corporation 5,149 5,541 3,190,700 ITOCHU Corporation 40,394 75,864 1,111,300 Japan Airlines Corp. 47,424 51,764 7,530,650 JXTG Holdings Inc. 35,318 68,685 251,400 Kuraray Company Ltd. 4,039 4,545 82,600 Lawson Inc. 6,136 6,782 199,200 Makita Corporation 10,620 11,715 7,811,600 Marubeni Corporation 56,621 78,186 374,600 McDonald’s Holdings Company

(Japan) Ltd. 13,180 25,113 261,800 Mitsubishi Corporation 5,447 9,544 3,117,500 Mitsui & Company Ltd. 47,764 68,248 323,200 Mitsui Fudosan Company Ltd. 10,205 10,235 1,380,500 Nikon Corporation 29,378 28,843

$ $




8

293,500 Nippon Telegraph and Telephone Corporation 12,069 17,528

1,917,800 Nissan Motor Company Ltd. 25,494 24,532 617,900 Obayashi Corporation 9,686 8,435 392,299 Osaka Gas Company Ltd. 8,921 10,679 2,702,300 Ricoh Company Ltd. 31,619 32,534 634,500 SECOM Company Ltd. 38,062 63,965 1,500,000 Sekisui House Ltd. 34,631 34,853 29,100 Shimamura Company Ltd. 4,609 3,363 3,786,800 Sumitomo Corporation 51,850 81,643 406,800 Tokyo Gas Company Ltd. 10,513 14,200 45,000 Toyo Suisan Kaisha Ltd. 1,158 2,111 1,017,300 USS Company Ltd. 13,836 25,427

648,188 883,548

LUXEMBOURG – 0.1%

323,117 SES SA 10,145 7,765

MALAYSIA – 1.8%

734,100 Axiata Group Berhad 1,444 908 8,670,700 Digi.Com Berhad 12,457 11,716 1,081,900 Genting Malaysia Berhad 1,346 1,718 287,400 Hong Leong Bank Berhad 1,046 1,703 90,700 Kuala Lumpur Kepong Berhad 622 713 8,185,400 Malayan Banking Berhad 24,485 23,967 8,632,100 Maxis Berhad 18,490 15,352 2,104,500 PETRONAS Gas Berhad 11,367 11,829 3,965,000 Public Bank Berhad 19,790 30,154 6,912,700 Sime Darby Berhad 20,834 5,507 6,912,700 Sime Darby Plantation Berhad 12,212 11,954 6,912,700 Sime Darby Property Berhad 2,835 2,692 9,278,800 Telekom Malaysia Berhad 15,540 9,388

142,468 127,601

MEXICO – 0.3%

6,494,600 America Movil SAB de CV, Series L 7,428 7,128 410,100 Fomento Economico Mexicano SAB de CV 3,495 4,738 3,456,700 Grupo Mexico SAB de CV, Series B 13,613 12,880

24,536 24,746

NETHERLANDS – 0.1%

147,793 Wolters Kluwer NV 2,615 10,915

NORWAY – 1.2%

594,372 Equinor ASA 18,622 20,662 277,442 Marine Harvest ASA 6,013 7,252 2,297,944 Telenor ASA 65,060 61,872

89,695 89,786

PERU – 0.8%

183,000 Credicorp Ltd. 43,930 54,160 105,200 Southern Copper Corporation 5,715 6,482

49,645 60,642

RUSSIA – 0.8%

6,227,026 PJSC Gazprom 38,993 35,874 231,602 PJSC Lukoil 18,365 20,735

57,358 56,609

SINGAPORE – 2.6%

15,976,700 Ascendas Real Estate Investment Trust 36,206 40,675 18,980,900 ComfortDelGro Corporation Limited 39,364 42,944 566,706 Oversea-Chinese Banking

Corporation Limited 4,494 6,346 1,476,400 SembCorp Industries Ltd. 4,718 3,910 17,243,600 Singapore Press Holdings Limited 60,770 43,200 2,272,000 Singapore Technologies Engineering Ltd. 6,266 7,200

$ $


12,586,200 Singapore Telecommunications Ltd. 38,544 37,358 318,300 United Overseas Bank Limited 6,460 8,201

196,822 189,834

SOUTH AFRICA – 0.5%

66,956 Sasol Limited 2,848 3,201 2,520,364 Vodacom Group Limited 33,330 29,660

36,178 32,861

SOUTH KOREA – 1.2%

769,248 Kia Motors Corporation 40,660 27,942 871,739 Korea Electric Power Corporation 55,141 32,871 11,352 POSCO 2,843 4,403 16,238 SK Hynix Inc. 706 1,639 599,200 SK Telecom Company Ltd., Sponsored ADR 14,040 18,370

113,390 85,225

SWEDEN – 3.3%

781,436 AB Electrolux, Class B 31,517 23,313 1,034,602 H&M Hennes & Mauritz AB, Class B 40,760 20,246 1,991,500 Industrivarden AB 41,864 50,504 429,194 Lundin Petroleum AB 12,872 17,909 2,770,581 Skandinaviska Enskilda Banken AB,

Class A 44,544 34,473 298,319 Swedbank AB 8,888 8,356 1,533,176 Tele2 AB, Class B 19,058 23,607 10,444,693 Telia Company AB 73,092 62,585

272,595 240,993

SWITZERLAND – 1.6%

152,031 Kuehne + Nagel International AG 32,148 30,004 59,939 Roche Holding AG 20,119 17,482 15,066 SGS SA 42,501 52,630 23,102 Swisscom AG 9,191 13,556

103,959 113,672

TAIWAN – 2.1%

1,278,800 Chunghwa Telecom Company Ltd., Sponsored ADR 45,824 60,388

230,000 Formosa Petrochemical Corporation 722 1,213 5,357,800 Hon Hai Precision Industry Company Ltd. 18,264 19,194 1,172,634 Taiwan Cooperative Financial

Holding Company Ltd. 582 902 8,397,000 Taiwan Mobile Company Ltd. 32,389 39,993 642,200 Taiwan Semiconductor Manufacturing

Company Limited, Sponsored ADR 13,447 30,867

111,228 152,557

THAILAND – 0.1%

1,927,300 PTT Global Chemical Public Company Limited 7,118 5,577

TURKEY – 0.2%

507,852 Turkiye Petrol Rafinerileri AS 20,684 15,738

UNITED KINGDOM – 8.3%

115,800 Aon PLC 5,900 20,882 684,961 Babcock International Group PLC 13,186 9,675 377,223 BT Group PLC 1,365 1,423 100,543 Bunzl PLC 1,318 3,992 9,508,449 Centrica PLC 40,520 25,955 599,500 Coca-Cola European Partners PLC 30,091 32,030 2,021,522 Compass Group PLC 45,607 56,648 1,551,395 Diageo PLC 55,820 73,272 2,685,715 Direct Line Insurance Group PLC 17,868 15,933 91,063 GlaxoSmithKline PLC 2,096 2,414 130,413 Intertek Group PLC 11,126 12,891

$ $




9

5,815,609 J Sainsbury PLC 32,964 32,354 1,326,663 RELX NV 19,682 37,078 139,191 RELX PLC 3,893 3,908 740,025 Rio Tinto Limited 38,410 60,109 242,215 Rio Tinto PLC 14,866 17,551 334,740 Severn Trent PLC 9,216 11,474 1,361,536 Smith & Nephew PLC 30,644 32,971 823,359 Smiths Group PLC 21,553 24,179 2,541,028 SSE PLC 62,868 59,631 1,119,078 United Utilities Group PLC 12,374 14,791 13,291,760 Wm Morrison Supermarkets PLC 44,660 57,961

516,027 607,122

Total International Equities 3,146,348 3,655,274

$ $


Index Equivalents – 0.3%

106,400 iShares MSCI EAFE ETF 8,713 9,368 35,000 SPDR® S&P 500 ETF Trust 10,190 12,482

Total Index Equivalents 18,903 21,850

Transaction Costs (4,624)

TOTAL INVESTMENT

PORTFOLIO – 99.1% $ 5,751,856 7,208,775

FORWARD CONTRACTS

(SCHEDULE 1) – 0.2% 15,715

OTHER NET ASSETS (LIABILITIES) – 0.7% 49,246

TOTAL NET ASSETS – 100.0% $ 7,273,736

$ $




Schedule 1

Foreign Exchange Forward Contracts (in 000s except contract price and total number of contract(s))

Canadian Value Canadian Value Settlement Currency to be as at Currency to be as at Contract CAD Unrealized Date Delivered June 30, 2018 Received June 30, 2018 Price Appreciation

July 03, 2018 1,920 GBP $ 3,332 3,338 CAD $ 3,338 1.73838 $ 6July 03, 2018 2,500 HKD 419 424 CAD 424 5.90060 5July 04, 2018 202,000 JPY 2,399 2,412 CAD 2,412 83.72429 13July 31, 2018 83,566 AUD 81,265 82,620 CAD 82,620 0.98868 1,355July 31, 2018 78,489 AUD 76,328 77,596 CAD 77,596 0.98862 1,268July 31, 2018 32,695 AUD 31,795 32,325 CAD 32,325 0.98869 530July 31, 2018 15,174 AUD 14,756 15,003 CAD 15,003 0.98872 247July 31, 2018 12,064 AUD 11,732 11,928 CAD 11,928 0.98874 196July 31, 2018 10,503 AUD 10,214 10,384 CAD 10,384 0.98868 170July 31, 2018 7,764 AUD 7,550 7,675 CAD 7,675 0.98863 125July 31, 2018 650 AUD 632 642 CAD 642 0.98862 10July 31, 2018 48,136 EUR 74,037 74,852 CAD 74,852 1.55500 815July 31, 2018 43,258 EUR 66,534 67,276 CAD 67,276 1.55523 742July 31, 2018 42,670 EUR 65,629 66,360 CAD 66,360 1.55519 731July 31, 2018 26,417 EUR 40,631 41,085 CAD 41,085 1.55527 454July 31, 2018 20,520 EUR 31,561 31,908 CAD 31,908 1.55496 347July 31, 2018 17,101 EUR 26,302 26,592 CAD 26,592 1.55501 290July 31, 2018 7,705 EUR 11,851 11,984 CAD 11,984 1.55530 133July 31, 2018 72,766 GBP 126,368 128,916 CAD 128,916 1.77164 2,548July 31, 2018 62,461 GBP 108,473 110,662 CAD 110,662 1.77168 2,189July 31, 2018 56,814 GBP 98,666 100,654 CAD 100,654 1.77163 1,988July 31, 2018 30,719 GBP 53,348 54,422 CAD 54,422 1.77159 1,074July 31, 2018 11,041 GBP 19,174 19,560 CAD 19,560 1.77155 386July 31, 2018 8,233 GBP 14,298 14,585 CAD 14,585 1.77147 287July 31, 2018 1,460 GBP 2,535 2,586 CAD 2,586 1.77167 51

$ 979,829 $ 995,789 $ 15,960

Canadian Value Canadian Value Settlement Currency to be as at Currency to be as at Contract CAD Unrealized Date Delivered June 30, 2018 Received June 30, 2018 Price Depreciation

July 31, 2018 8,956 CAD $ 8,956 5,055 GBP $ 8,779 1.77163 $ (177)July 31, 2018 4,869 CAD 4,869 3,131 EUR 4,816 1.55500 (53)July 31, 2018 994 CAD 994 640 EUR 985 1.55262 (9)July 31, 2018 3,340 CAD 3,340 1,920 GBP 3,334 1.73974 (6)

$ 18,159 $ 17,914 $ (245)

TOTAL NUMBER OF CONTRACT(S): 29 CAD NET UNREALIZED APPRECIATION $ 15,715

10


Fund-Specific Notes to the Interim Financial Report (Unaudited)

(A) The Fund(I) The Fund’s start date was November 1, 2011.

(II) TDAM is the manager, portfolio adviser and trustee of the Fund. TDIS is the principal distributor of the Investor Series units of the Fund.

(III) At June 30, 2018, TD and funds managed by TDAM held 80.2% (December 31, 2017: 82.4%) of the net assets of the Fund.

(IV) The presentation and functional currency of the Fund is the Canadian dollar.

(V) The investment objective of the Fund is to seek to achieve long-termcapital appreciation by investing primarily in equity securities of issuerslocated anywhere in the world. In seeking to achieve this objective, the Fund invests primarily in, or obtains exposure to, a diversified portfolio of global stocks which are included in the MSCI All Country World Index(“MSCI ACWI”). Over a full market cycle, the Fund seeks to deliverperformance similar to that of the MSCI ACWI but with less volatility than the MSCI ACWI by overweighting stocks that are expected to deliver less volatile returns and by underweighting, or excluding, stocks that areexpected to deliver more volatile returns. The Fund looks at individual stocksand the correlation between stocks, with the aim of reducing volatility byusing historical standard deviation as a tool in stocks selection. As a result of this strategy, the Fund may not fully benefit from strong equity markets.

(B) Management Fees and Administration Fees (Note 6)for the periods ended June 30, 2018 and 2017

(I) MANAGEMENT FEES (%) (exclusive of GST and HST)

Annual Maximum Actual Rate• Annual Rate Annual Rate•

Series 2018 2017 2017

Investor Series 1.90 1.90 1.95Premium Series 1.85 1.85 1.85Advisor Series 1.90 1.90 1.95F-Series 0.90 0.90 0.94Premium F-Series 0.85 0.85 0.85H-Series 1.90 1.90 1.95S-Series 0.90 0.90 0.95T-Series 1.90 1.90 1.95D-Series 1.15 1.15 1.19Private Series 0.00 0.00 0.00O-Series 0.00 0.00 0.00

• Includes management fees paid by the Fund and the proportionate management fees, if any, of the underlying fund(s) managed by TDAM held by the Fund. However, there is no duplication of management fees paid to TDAM or its affiliates if the Fund invests in underlying fund(s) that are managed by TDAM.

Effective March 28, 2017, the management fee rate charged to Investor Series, AdvisorSeries, H-Series and T-Series was changed from 2.00% to 1.90%, F-Series and S-Series was changed from 1.00% to 0.90% and D-Series was changed from 1.25% to 1.15%.

(II) ADMINISTRATION FEES (%) (exclusive of GST and HST)

Annual Rate

Series 2018 2017

Investor Series 0.30 0.30Premium Series 0.30 0.30Advisor Series 0.30 0.30H-Series 0.30 0.30T-Series 0.30 0.30D-Series 0.30 0.30

(C) Brokerage Commissions and Soft Dollars (in 000s) (Notes 3 and 6)for the periods ended June 30, 2018 and 2017

(I) BROKERAGE COMMISSIONS

2018 2017

Total Brokerage Commissions $ 2,259 $ 1,467

Paid to Related Parties 5 6

(II) SOFT DOLLARS

Not significant or applicable to the Fund.

(D) Tax Loss Carry Forwards (in 000s) (Note 7)as at December 31, 2017None for the Fund.

(E) Securities Lent (Note 3)

(I) SECURITIES LENDING INCOME

A reconciliation of the gross amount generated from the securities lendingtransactions to the securities lending income to the Fund for the periodsended June 30, 2018 and 2017 is as follows:

Percentage of Amount (in 000s) Total Amount (%)

2018 2017 2018 2017

Gross Securities Lending Income $ 2,022 $ 1,554 100.0 100.0

Agent fees – The Bank of New York Mellon Corp. (400) (305) (19.8) (19.6)

Securities Lending Income to the Fund before Tax Reclaims (Withholding Taxes) 1,622 1,249 80.2 80.4

Tax Reclaims (Withholding Taxes) (23) (28) (1.1) (1.8)

Net Securities Lending Income $ 1,599 $ 1,221 79.1 78.6

(II) SECURITIES LENT AND COLLATERAL HELD (in 000s)The table below summarizes the aggregate securities lent and relatedcollateral held by the Fund as at June 30, 2018 and December 31, 2017.

June 30, December 31, 2018 2017

Fair Value of Securities Lent $ 716,574 $ 736,744

Fair Value of Collateral Held 768,785 782,447

Collateral held is in the form of debt obligations of the Government ofCanada and other countries, Canadian provincial and municipal governmentsor corporations and is not included in the Statements of Financial Position.


11


(F) Financial Risk Management (Notes 3, 4 and 8)as at June 30, 2018 and December 31, 2017

(I) INTEREST RATE RISK


(II) CURRENCY RISK

The following tables indicate the foreign currencies to which the Fund hadexposure to as at June 30, 2018 and December 31, 2017 in Canadian dollarterms, including the underlying principal amount of foreign exchange forwardcontracts, as applicable. The tables also illustrate the potential impact to the Fund’s net assets if the Fund’s functional currency, the Canadian dollar,had strengthened or weakened by 5 percent in relation to all exposure to other currencies, with all other variables held constant. In practice, theactual trading results may differ from these approximate sensitivity amountsand the differences could be material.

Foreign Exchange Financial Forward Total Impact on Currency (in 000s) Instruments Contracts Exposure* Net Assets*

June 30, 2018Australian Dollar $ 263,106 $ (234,272) $ 28,834 $ 1,442Brazilian Real 11,462 0 11,462 573British Pound 462,822 (414,081) 48,741 2,437Chilean Peso 786 0 786 39China Renminbi 107 0 107 5Czech Koruna 7 0 7 0Danish Krone 81,304 0 81,304 4,065Euro 345,012 (310,744) 34,268 1,714Hong Kong Dollar 262,538 (419) 262,119 13,106Japanese Yen 887,680 (2,399) 885,281 44,264Malaysian Ringgit 128,770 0 128,770 6,439Mexican Peso 24,746 0 24,746 1,237New Taiwan Dollar 61,303 0 61,303 3,065New Turkish Lira 15,740 0 15,740 787Norwegian Krone 89,802 0 89,802 4,490Philippine Peso 1 0 1 0Singapore Dollar 189,840 0 189,840 9,492South African Rand 32,867 0 32,867 1,643South Korean Won 66,938 0 66,938 3,347Swedish Krona 240,996 0 240,996 12,050Swiss Franc 113,681 0 113,681 5,684Thai Baht 5,577 0 5,577 279United States Dollar 3,228,052 0 3,228,052 161,403

Total $ 6,513,137 $ (961,915) $ 5,551,222 $ 277,561

As a Percentage of Net Assets (%) 76.3 3.8

* Includes both monetary and non-monetary instruments, where applicable.


Foreign Exchange Financial Forward Total Impact on Currency (in 000s) Instruments Contracts Exposure* Net Assets*

December 31, 2017Australian Dollar $ 270,273 $ (240,851) $ 29,422 $ 1,471Brazilian Real 14,701 0 14,701 735British Pound 465,262 (410,424) 54,838 2,742Chilean Peso 779 0 779 39Czech Koruna 7 0 7 0Danish Krone 66,976 0 66,976 3,349Euro 388,469 (355,522) 32,947 1,647Hong Kong Dollar 450,260 0 450,260 22,513Japanese Yen 849,702 0 849,702 42,485Malaysian Ringgit 144,165 0 144,165 7,208Mexican Peso 26,237 0 26,237 1,312New Taiwan Dollar 61,976 0 61,976 3,099New Turkish Lira 14,747 0 14,747 737Norwegian Krone 23,960 0 23,960 1,198Philippine Peso 1 0 1 0Singapore Dollar 239,645 (1,410) 238,235 11,912South African Rand 48,210 0 48,210 2,411South Korean Won 124,758 0 124,758 6,238Swedish Krona 230,771 0 230,771 11,539Swiss Franc 97,422 0 97,422 4,871United States Dollar 3,718,589 0 3,718,589 185,929

Total $ 7,236,910 $ (1,008,207) $ 6,228,703 $ 311,435

As Percentage of Net Assets (%) 77.2 3.9

* Includes both monetary and non-monetary instruments, where applicable.

(III) OTHER PRICE RISK

The table below summarizes the impact of other price risk to the Fund. As at June 30, 2018 and December 31, 2017, had the benchmark of the Fund increased or decreased by 5 percent, with all other variables heldconstant, the net assets of the Fund would have increased or decreased by approximately:

Impact on Impact on Net Assets (in 000s) Net Assets (%)

June 30, December 31, June 30, December 31,Benchmark 2018 2017 2018 2017

MSCI All Country World Index (Net Dividend, C$) $ 263,120 $ 328,869 3.6 4.1

In practice, the actual trading results may differ from the above estimatedamounts and the differences could be material.

(IV) CREDIT RISK


Fund-Specific Notes to the Interim Financial Report

12


(V) FINANCIAL INSTRUMENTS BY THE LEVEL IN THE FAIR VALUE HIERARCHY (in 000s)The tables below illustrate the classification of the Fund’s financial instrumentswithin the fair value hierarchy as at June 30, 2018 and December 31, 2017.

Level 1 Level 2 Level 3 Total

June 30, 2018Common Shares $ 3,973,327 $ 3,213,598 $ 0 $ 7,186,925Underlying Funds 21,850 0 0 21,850Forward Contracts 0 15,715 0 15,715

3,995,177 3,229,313 0 7,224,490

Forward Contracts 0 0 0 0

$ 3,995,177 $ 3,229,313 $ 0 $ 7,224,490

As at the end of the period, equity positions with a fair value of $3,169,108 and $38,913 were transferred from Level 1 to Level 2 andLevel 2 to Level 1 respectively as a result of changes in activities in themarket for those securities.

Level 1 Level 2 Level 3 Total

December 31, 2017Common Shares $ 7,924,477 $ 78,035 $ 0 $ 8,002,512Underlying Funds 18,680 0 0 18,680Forward Contracts 0 11,218 0 11,218

7,943,157 89,253 0 8,032,410

Forward Contracts 0 0 0 0

$ 7,943,157 $ 89,253 $ 0 $ 8,032,410

As at the end of the period, equity positions with a fair value of $35,669were transferred from Level 2 to Level 1 as a result of increased activity in the market for those securities.

(VI) RECONCILIATION OF LEVEL 3 FAIR VALUE MEASUREMENTS (in 000s)Not significant or applicable to the Fund.

(VII) CONTRACTUAL MATURITIES ANALYSIS FOR FINANCIAL LIABILITIES

As at June 30, 2018 and December 31, 2017, the Fund’s net assets are due on demand. All other financial liabilities of the Fund are due in less than three months.


(G) Investment Portfolio Concentration (%) (Note 8)As at June 30, 2018 and December 31, 2017, the Fund’s investment portfolioconcentration can be summarized as follows:

June 30, December 31, 2018 2017

Canadian EquitiesEnergy 0.6 1.4Industrials 0.0 0.4Consumer Discretionary 0.7 0.4Consumer Staples 0.3 0.3Financials 5.4 5.0Telecommunication Services 1.9 1.9Utilities 0.1 0.1Royalty/Income Trusts 0.9 0.8U.S. EquitiesEnergy 2.1 1.9Materials 3.6 2.9Industrials 8.2 7.6Consumer Discretionary 4.6 4.7Consumer Staples 8.1 8.2Health Care 0.7 1.3Financials 7.3 8.1Information Technology 2.0 2.0Telecommunication Services 0.3 1.0Utilities 1.7 2.1International EquitiesAustralia 2.8 2.5Austria 0.1 0.2Belgium 1.0 0.9Bermuda 1.3 1.2Brazil 0.2 0.2Chile 0.0 0.0China 0.1 1.6Denmark 1.1 0.8Finland 0.4 0.2France 1.0 1.4Germany 0.7 0.6Hong Kong 3.5 3.9Israel 0.2 0.2Italy 0.8 0.6Japan 12.1 10.5Luxembourg 0.1 0.2Malaysia 1.8 1.8Mexico 0.3 0.3Netherlands 0.1 0.3Norway 1.2 0.3Peru 0.8 0.7Russia 0.8 0.7Singapore 2.6 2.9South Africa 0.5 0.6South Korea 1.2 1.7Sweden 3.3 2.9Switzerland 1.6 1.5Taiwan 2.1 2.4Thailand 0.1 0.0Turkey 0.2 0.2United Kingdom 8.3 7.8Index Equivalents 0.3 0.2Forward Contracts 0.2 0.1Other Net Assets (Liabilities) 0.7 0.5

100.0 100.0

Fund-Specific Notes to the Interim Financial Report

13


(H) Interest in Unconsolidated Structured Entities (in 000s) (Note 3)The table below illustrates the Fund’s investment details in the underlyingfunds as at June 30, 2018 and December 31, 2017.

Fair Value Underlying of Fund’s Fund’s Underlying Funds Investment Net Assets

June 30, 2018iShares MSCI EAFE ETF $ 9,368 $ 95,408,108SPDR® S&P 500 ETF Trust 12,482 340,888,597

$ 21,850

December 31, 2017iShares MSCI EAFE ETF $ 8,617 $106,588,643SPDR® S&P 500 ETF Trust 10,063 348,870,289

$ 18,680

TD Global Low Volatility Fund Fund-Specific Notes to the Interim Financial Report

(I) Offsetting of Financial Assets and Liabilities (in 000s) (Note 3)The following table presents the recognized financial instruments that are offset, or subject to enforceablemaster netting arrangements, if certain conditions arise, or other similar agreements but that are notoffset, and cash and financial instruments collateral received or pledged, as at June 30, 2018 and December 31, 2017 and shows in the Net Amount column what the impact would be on the Fund’sStatements of Financial Position if all set-off rights were exercised.

Amounts Net Amounts Related Amounts Not

Gross Amounts Set-Off on the Presented on Set-Off on the Statements

of Recognized Statements the Statements of Financial Position

Financial Assets of Financial of Financial Financial (Liabilities) Position Position Instruments Cash Net Amount

June 30, 2018Derivative Assets $ 15,960 $ (245) $ 15,715 $ 0 $ 0 $ 15,715

Derivative Liabilities (245) 245 0 0 0 0

December 31, 2017Derivative Assets $ 11,253 $ (35) $ 11,218 $ 0 $ 0 $ 11,218

Derivative Liabilities (35) 35 0 0 0 0

(J) Significant EventsEffective March 28, 2017, the Premium Series and Premium F-Series were closed to all purchases.

(K) Subsequent EventsEffective on or about July 26, 2018, TD Asset Management Inc. changed the names of certain series of the Fund as follows:• From H-Series to H8 Series• From T-Series to T8 Series• From S-Series to FT8 Series

14

1. The Funds

The TD Mutual Fund Trusts and TD Managed Assets Program Portfolios(collectively, the “Funds” and individually, the “Fund”) are open-endmutual funds established under the laws of Ontario and governed by the Declaration of Trust, as amended from time to time.

The TD Managed Assets Program Portfolios invest primarily in units ofother investment funds including in units of exchange-traded funds.

TD Asset Management Inc. (“TDAM”) is the manager, portfolio adviserand trustee of the Funds. TDAM, TDAM USA Inc., TD Investment Services Inc. (“TDIS”), TD Waterhouse Canada Inc. (“TDW”) and EpochInvestment Partners, Inc. (“Epoch”) are wholly-owned subsidiaries of The Toronto-Dominion Bank (“TD”). The registered address of the Fundsis P.O. Box 100, 66 Wellington Street West, TD Bank Tower, Toronto-Dominion Centre, Toronto, Ontario, M5K 1G8.

The financial year-end for the Funds is December 31. The Statements of Financial Position are presented as at June 30, 2018 andDecember 31, 2017, as applicable. The Statements of ComprehensiveIncome, Statements of Changes in Net Assets Attributable to Holders of Redeemable Units and Statements of Cash Flows are presented for the six-month periods ended June 30, 2018 and 2017, as applicable.Where a Fund or series of a Fund was established during either period,the information for that Fund or series is provided from the inceptiondate and a comparative statement has only been presented for anyperiod for which that Fund was in existence as at the reporting date.

Each Fund’s start date as indicated in the Fund-Specific Notes to theInterim Financial Report (“Fund-Specific Notes”) is the date that itcommenced operations or in the case of a new series, the date the series was first offered and not its inception date.

These financial statements were authorized for issue by TDAM onAugust 15, 2018.

2. Basis of Presentation

These financial statements have been prepared in compliance withInternational Financial Reporting Standards (“IFRS”) as published by the International Accounting Standards Board (“IASB”), applicable to the preparation of interim financial reports, including InternationalAccounting Standards (“IAS”) 34, “Interim Financial Reporting”. These financial statements have been prepared under the historical cost convention, as modified by the revaluation of financial assets andfinancial liabilities (including derivative financial instruments) at fairvalue through profit or loss (“FVTPL”).

IFRS 9, “Financial Instruments” TransitionEffective January 1, 2018, the Funds adopted IFRS 9. The new standardintroduced a model for classification and measurement of financialassets and liabilities including those carried at amortized cost; fair value,with changes in fair value recognized in FVTPL; or fair value throughother comprehensive income (“FVOCI”) based on the entity’s businessmodel for managing financial assets and the contractual cash flowcharacteristics of these financial assets. Assessment and decision on thebusiness model approach used is an accounting judgement.

Upon transition to IFRS 9, the Funds’ financial assets and financialliabilities previously designated as FVTPL under IAS 39, “FinancialInstruments Recognition and Measurement”, generally based on the fair value option, are now classified as FVTPL and there were no changes in the measurement attributes. The Funds’ financial assets andliabilities or derivatives previously classified as held for trading underIAS 39 are also now classified as FVTPL. All assets previously classifiedas loans and receivables under IAS 39 are now recorded at amortizedcost under IFRS 9. The classification and measurement of liabilities under the new standard remains generally unchanged. The adoption of IFRS 9 has been applied retrospectively and did not result in anychanges in the prior period.

3. Summary of Significant Accounting Policies

Financial InstrumentsFinancial instruments include financial assets and financial liabilities,such as investments, derivatives, cash, and other receivables andpayables. The Funds classify and measure financial instruments inaccordance with IFRS 9. Upon initial recognition, financial instrumentsare classified as FVTPL. All financial assets and liabilities are recognizedin the Statements of Financial Position when a Fund becomes a party to the contractual requirements of the instrument. Financial instrumentsare derecognized when the right to receive cash flows from theinstrument has expired or a Fund has transferred substantially all risksand rewards of ownership. As such, investment purchase and saletransactions are recorded as of the trade date.

The Funds’ financial assets and financial liabilities, other than receivablesand payables, are subsequently measured at FVTPL with changes in fair value recognized in the Statements of Comprehensive Income. Otherreceivables and payables are subsequently measured at amortized cost.

The Funds have determined that they meet the definition of an‘investment entity’ and as a result, the Funds measure subsidiaries, if any, at FVTPL. An investment entity is an entity that: obtains funds from one or more investors for the purpose of providing them withinvestment management services; commits to its investors that itsbusiness purpose is to invest funds solely for returns from capitalappreciation, investment income, or both; and measures and evaluatesthe performance of substantially all of its investments on a fair valuebasis. The significant judgment that the Funds have made in determiningthat this definition is met is that fair value is the primary measurementattribute used to measure and evaluate the performance of substantiallyall of the Funds’ investments. The Funds’ investments may also includeassociates and joint ventures which are measured at FVTPL.

The Funds’ outstanding redeemable units’ entitlements include acontractual obligation to distribute any net income and net realizedcapital gains in cash (at the request of the unitholder) and therefore the ongoing redemption feature is not the Funds’ only contractualobligation. Consequently, the Funds’ Net Assets Attributable to Holdersof Redeemable Units are classified as financial liabilities in accordancewith the requirements of IAS 32, “Financial Instruments: Presentation”.The Funds’ obligations for Net Assets Attributable to Holders ofRedeemable Units are presented at the redemption amount.

nNotes to the Interim Financial Report (Unaudited)

June 30, 2018 Semi-Annual Financial Report15

The accounting policies for measuring the fair value of the Funds’ investments and derivatives are substantially similar to those used inmeasuring the Funds’ net asset value (“NAV”) for transactions withunitholders. The NAV is the value of the total assets of a fund less the value of its total liabilities determined, on each valuation day, inaccordance with Part 14 of National Instrument 81-106, “InvestmentFund Continuous Disclosure”, for the purpose of processing unitholder transactions. Net Assets Attributable to Holders of Redeemable Units,also referred to as Net Assets, refers to net assets calculated in accor-dance with IFRS. As at all dates presented, there were no differencesbetween the Funds’ NAV per series unit and Net Assets per series unit.

Fair Value MeasurementFair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market partici-pants at the measurement date. The fair value of financial assets and liabilities traded in active markets (such as publicly traded derivativesand marketable securities) is based on quoted market prices at the closeof trading on the reporting date. The Funds use the last traded marketprice for both financial assets and financial liabilities where the last traded price falls within that day’s bid-ask spread. In circumstanceswhere the last traded price is not within the bid-ask spread, TDAM determines the point within the bid-ask spread that is most representa-tive of fair value based on the specific facts and circumstances.

The fair value of financial assets and liabilities not traded in an activemarket, including over-the-counter derivatives, is determined usingvaluation techniques. The Funds use a variety of methods and makeassumptions that are based on market conditions existing at eachreporting date. Valuation techniques include the use of comparablerecent arm’s length transactions, reference to other instruments that are substantially the same, discounted cash flow analysis, option pricingmodels and other techniques commonly used by market participants and which attempt to make the maximum use of observable inputs.

The valuation methodology for specific types of investments held by the Funds is summarized below.

(a) Securities not listed on any recognized public securities exchange are valued based on available quotations from recognized dealers insuch securities, where readily available. If securities have no availablebroker-dealer bid/ask quotes, TDAM uses its own pricing model toprice the securities. The pricing model will generally include thediscounted cash flow valuation approach, the use of a credit spreadbased on the terms of the security and the use of such credit andyield analysis comparables as TDAM believes are relevant in thecircumstances. Debt instruments are valued based on mid prices,where readily available. Other valuation techniques may be used, as described above, where applicable.

(b) Short-term debt instruments, repurchase and reverse repurchaseagreements are valued based on quotations received from recognizedinvestment dealers.

(c) Real return bonds are valued based on the available public quotations from recognized dealers. Changes in the inflation factorare included in Interest for Distribution Purposes in the Statements of Comprehensive Income.

(d) The Funds may use foreign exchange forward contracts to hedgeagainst or profit from fluctuations in foreign exchange rates. Thesecontracts are valued on each valuation day based on the differencebetween the contract rates and the current forward rates at themeasurement date applied to the contracts’ notional amount. The net change in unrealized appreciation or depreciation and the netrealized gain or loss from closing out contracts are reflected in theStatements of Comprehensive Income as part of Net Gain (Loss) on Derivatives.

(e) The Funds may enter into a forward contract to obtain exposure to a specific type of investment without actually investing directly insuch investment. These contracts are valued based on the differencebetween the contract rate and the current market rate for theunderlying investment, at the measurement date. The unrealized gainor loss and the net realized gain or loss from closing out contractsare reflected in the Statements of Comprehensive Income as part ofNet Gain (Loss) on Derivatives.

(f) The Funds may purchase standardized, exchange-traded futurescontracts. Any difference between the value at the close of businesson the current valuation day and that of the previous valuation day is settled in cash daily and recorded in the Statements ofComprehensive Income as Derivatives Income (Loss). Any amountsreceivable (payable) from settlement of futures contracts are reflectedin the Statements of Financial Position as Futures Margin Receivable(Payable). Short-term debt instruments as indicated in the Schedule of Investment Portfolio have been segregated and are held as marginagainst the futures contracts purchased by the Funds, as applicable.

(g) Options contracts that are traded in exchange markets are valued attheir closing prices on each valuation day. The premium received orpaid on options written or purchased is included in the cost of theoptions. Any difference between the current value of the contract and the value of the contract originated is recognized as net changein unrealized appreciation or depreciation on derivatives. Whenoptions are closed or exercised, the difference between the premiumand the amount paid or received, or the full amount of the premiumif the option expires worthless, is reflected in the Statements ofComprehensive Income as part of Net Gain (Loss) on Derivatives. Thecost of a security purchased will be reduced by the premium receivedon options when a written put option is exercised or increased by the amount paid on options when a purchased option is exercised.

(h) The exchange-traded funds (“ETFs”) that are not managed by TDAMare valued based on quoted market prices at the close of trading onthe reporting date.

(i) Investments in underlying conventional mutual funds and ETFs that are managed by TDAM are generally valued at the NAV perseries unit of the investment funds as reported by the investmentfunds’ managers.


Semi-Annual Financial ReportJune 30, 2018 16

Fair Value HierarchyThe Funds classify their investments into fair value measurements within a hierarchy that prioritizes the inputs to fair value measurement.The fair value hierarchy has the following three levels:

Level 1 Quoted (unadjusted) prices in active markets for identicalassets or liabilities;

Level 2 Inputs other than quoted prices that are observable for the asset or liability either directly (that is, as prices) orindirectly (that is, derived from prices); and

Level 3 Inputs that are not based on observable market data (that is, unobservable inputs).

All fair value measurements are recurring. The carrying values of Cash,Subscriptions Receivable, Interest Receivable, Dividends Receivable,Receivable for Investments Sold, Bank Overdfart, Payable for InvestmentsPurchased, Redemptions Payable, Distributions Payable, AccruedLiabilities and the Funds’ obligation for Net Assets Attributable toHolders of Redeemable Units approximate their fair values due to theirshort-term nature.

Fair values are classified as Level 1 when the related security or deriva-tive is actively traded and a quoted price is available. If an instrumentclassified as Level 1 subsequently ceases to be actively traded, it is transferred out of Level 1. In such cases, instruments are reclassified into Level 2, unless the measurement of its fair value requires the use ofsignificant unobservable inputs, in which case it is classified as Level 3.The Funds’ policy is to recognize transfers into and out of the fair valuehierarchy levels at the end of reporting period.

The hierarchy gives the highest priority to unadjusted quoted prices inactive markets for identical assets or liabilities (Level 1) and the lowestpriority to unobservable inputs (Level 3).

The classification within the hierarchy is based on the lowest level inputthat is significant to the fair value measurement. For this purpose, thesignificance of an input is assessed against the fair value measurementin its entirety. If a fair value measurement uses observable inputs thatrequire significant adjustment based on unobservable inputs, thatmeasurement is a Level 3 measurement. Assessing the significance of a particular input to the fair value measurement in its entirety requiresjudgment, considering factors specific to the asset or liability.

The determination of what constitutes ‘observable’ requires significantjudgment. Observable data is considered to be that market data that isreadily available, regularly distributed or updated, reliable and verifiable,not proprietary, and provided by independent sources that are activelyinvolved in the relevant market.

TDAM has a Global Fair Value Committee which oversees the perform-ance of the fair value measurements included in the financial statementsof the Funds, including any Level 3 measurements. TDAM utilizes a variety of methods (as listed in the Fair Value Measurement section) in determining the fair value of securities classified as Level 3. The committee also meets quarterly to perform reviews of the valuations ofinvestments held by the Funds.

The classification of the Funds’ financial instruments within the fair valuehierarchy as at June 30, 2018 and December 31, 2017, and any transfersbetween levels at the end of the reporting periods as a result of changesin the lowest level input that is significant to the fair value measurementare disclosed in the Fund-Specific Notes, where applicable.

Interest in Unconsolidated Structured EntitiesA structured entity is an entity that has been designed so that voting or similar rights are not the dominant factor in deciding who controls the entity, such as when any voting rights relate to administrative tasksonly and the relevant activities are directed by means of contractualarrangements. TDAM has determined that all of the underlying funds inwhich the Funds invest are unconsolidated structured entities. In makingthis determination, TDAM evaluated the fact that decision making aboutunderlying funds’ activities is generally not governed by voting or similarrights held by the Funds and other investors in any underlying funds.

The Funds may invest in underlying funds whose investment objectivesrange from seeking to achieve short- to long-term income and capitalgrowth potential. The Funds’ interests in these securities as at June 30,2018 and December 31, 2017 are included at their fair value in theStatements of Financial Position, which represent the Funds’ exposure in these underlying funds. The Funds do not provide and have notcommitted to provide any additional significant financial or other support to the underlying funds. The change in fair value of each of the underlying funds during the reporting periods is included in NetChange in Unrealized Appreciation/Depreciation in the Statements of Comprehensive Income as part of Net Gain (Loss) on Investments.Additional information on the Funds’ interest in underlying funds, where applicable, is provided in the Schedule of Investment Portfolio and Fund-Specific Notes.

The TD Mutual Fund Trusts may also invest in mortgage-related and otherasset-backed securities that directly or indirectly represent a participationin, or are secured by and payable from, mortgage loans on real property.Mortgage-related securities are created from pools of residential orcommercial mortgage loans, including mortgage loans made by savingsand loan institutions, mortgage bankers, commercial banks and others.The debt and equity securities issued by these issuers may includetranches with varying levels of subordination. These Funds may alsoinvest in senior notes that have a first lien on assets and have minimumexposure to junior or subordinate tranches. These securities may providea monthly payment which consists of both interest and principalpayments. Other asset-backed securities are created from many types ofassets, including auto loans, credit card receivables, home equity loans,and student loans.

As at June 30, 2018 and December 31, 2017, the fair value of mortgage-related and other asset-backed securities of these Funds,where applicable, is disclosed as part of the Investments in theStatements of Financial Position. The fair value represents the maximumexposure to losses at those dates. The change in fair value of mortgage-related and other asset-backed securities during the reporting periods is included in the Net Change in Unrealized Appreciation/Depreciation in the Statements of Comprehensive Income as part of Net Gain (Loss)on Investments.



Translation of Foreign CurrenciesA Fund’s functional currency, as disclosed in the Fund-Specific Notes,represents the currency that TDAM views to most faithfully represent the economic effects of the Fund’s underlying transactions, events andconditions taking into consideration how units are issued or redeemedand how returns are measured. Foreign currency transactions are trans-lated into the functional currency using the exchange rates prevailing at the dates that transactions occur. Realized foreign exchange gains and losses on income are recognized in investment income in theStatements of Comprehensive Income.

Assets and liabilities denominated in a foreign currency are translatedinto the functional currency using the exchange rate prevailing at themeasurement date. Foreign exchange gains and losses on the sale ofinvestments are included in Net Realized Gain (Loss). Unrealized foreignexchange gains and losses on investments held and other assets andliabilities are included in Net Change in Unrealized Appreciation/Depreciation. Realized and unrealized foreign exchange gains and lossesrelating to cash are presented as Foreign Exchange Gain (Loss) on Cashin the Statements of Comprehensive Income.

Offsetting Financial Assets and LiabilitiesFinancial assets and liabilities are offset and the net amount reported in the Statements of Financial Position where the Funds have a legallyenforceable right to offset the recognized amounts and there is anintention to settle on a net basis or realize the asset and settle theliability simultaneously. In all other situations they are presented on agross basis. In the normal course of business, the Funds may enter intovarious master netting agreements or other similar arrangements that do not meet the criteria for offsetting in the Statements of FinancialPosition but still allow for the related amounts to be set-off in certaincircumstances, such as bankruptcy or the termination of the contracts.Offsetting information, where applicable, is presented in the Fund-Specific Notes.

Reverse Repurchase AgreementsCertain TD Mutual Fund Trusts may enter into reverse repurchase trans -actions. In a reverse repurchase transaction, a fund buys a security atone price from a third party and agrees to sell the same security back to the same party at a specified price on an agreed future date and thedifference is included as part of Net Gain (Loss) on Investments in theStatements of Comprehensive Income.

The risk with these types of transactions is that the other party maydefault under the agreement or go bankrupt. These risks are reduced byrequiring the other party to provide collateral to these Fund. The value of the collateral has to be at least 102 percent of the market value of the security and the collateral is marked to market on each business day.The type of securities received and related collateral held by these Funds,where applicable, are listed in the Schedule of Investment Portfolio.

CashCash is comprised of deposits with financial institutions. Bank overdrafts are included under Current Liabilities in the Statements of Financial Position.

Receivable for Investments Sold/Payable for Investments PurchasedReceivable for Investments Sold and Payable for Investments Purchasedrepresent trades that have been contracted for but not yet settled ordelivered on the Statements of Financial Position dates.

MarginMargin accounts represent margin deposits held with brokers in respectof open exchange-traded futures contracts.

Valuation of Series UnitsTDAM generally calculates the NAV for each series of the Funds as at4 p.m. Eastern Time on each day that the Toronto Stock Exchange is open for trading. However, in some unforeseen circumstances, the seriesNAV per unit may be calculated at another time.

The NAV is calculated, for processing subscription, switch, conversion or redemption orders of series units, for each series of units of the Funds by taking the series’ proportionate share of the individual Fund’scommon assets less that series’ proportionate share of its commonliabilities and deducting from this amount all liabilities that relate solelyto that specific series.

The Net Assets Attributable to Holders of Redeemable Units – Per SeriesUnit is determined by dividing the total Net Assets Attributable toHolders of Redeemable Units of each series of the Funds by the totalnumber of units outstanding of that series at the reporting date.

Income RecognitionInterest for Distribution Purposes as shown in the Statements ofComprehensive Income includes interest income from cash and thecoupon interest on debt instruments accounted for on an accrual basis.Interest Receivable is disclosed in the Statements of Financial Positionbased on the debt instruments’ stated rates of interest. The Funds do not amortize premiums paid or discounts received on the purchase ofdebt securities except for zero coupon bonds which are amortized.

Dividend income from ETFs and distributions from any underlying mutualfunds are recognized on the ex-dividend and ex-distribution date,respectively. Dividends received from ETFs are recognized and presentedin the financial statements based on the nature of the underlyingcomponents such as interest income, dividend income, capital gains and return of capital.

The TD Mutual Fund Trusts may engage in securities lending pursuant to the terms of an agreement which includes restrictions as set out inCanadian securities legislation. The income earned from securities lend-ing, where applicable, is included in the Statements of ComprehensiveIncome as it is earned. The fair value of the securities loaned and fairvalue of the collateral held is determined daily. The details of securitieslending income, aggregate values of securities on loan and related collateral held are provided in the Fund-Specific Notes, where applicable.



Investment Transactions and Transaction CostsFor the purposes of calculating realized and unrealized gains and lossesfrom investment transactions, the cost of each investment security isdetermined on an average cost basis, excluding transaction costs.

Transaction costs, such as brokerage commissions, incurred by the Fundsin the purchase and sale of investments at fair value are recognized in the Statements of Comprehensive Income in the period incurred.Commissions incurred, where applicable, are also disclosed in the Fund-Specific Notes. No transaction costs are incurred when the Fundsinvest in underlying mutual funds. However, the underlying funds’investments may be subject to transaction costs.

Allocation of Income and Expenses, Realized and Unrealized Gains (Losses)Expenses (excluding interest charges and portfolio transaction costs) areaccrued daily, separately for each series. Interest charges and portfoliotransaction costs along with income, gains and losses, are allocated toeach series based on their respective Net Assets Attributable to Holdersof Redeemable Units.

Increase (Decrease) in Net assets Attributable to Holders of Redeemable Units – Per Series UnitThe Increase (Decrease) in Net Assets Attributable to Holders ofRedeemable Units – Per Series Unit is calculated by dividing the Increase(Decrease) in Net Assets Attributable to Holders of Redeemable Units ofeach series by the weighted average units outstanding of that series forthe reporting period, except when a series was established during thereporting period, in which case the Weighted Average Units Outstandingfor the Period – Per Series is calculated from the start date of that series.

4. Critical Accounting Estimates and Judgments

The preparation of financial statements requires management to usejudgment in applying its accounting policies and to make estimates and assumptions about the future. The following discusses the mostsignificant accounting judgments and estimates that the Funds havemade in preparing the financial statements:

Fair Value Measurement of Derivatives and Securities Not Quoted in an Active MarketThe Funds may hold financial instruments that are not quoted in activemarkets, including derivatives. As described in Note 3, the use ofvaluation techniques for financial instruments and derivatives that arenot quoted in an active market requires TDAM to make assumptions that are based on market conditions existing as at the reporting date of the financial statements. Changes in assumptions about these factorscould affect the reported fair values of financial instruments. Refer to the Fund-Specific Notes for further information about the fair valuemeasurement of the Funds’ financial instruments, where applicable.

Classification and Measurement of InvestmentsIn classifying and measuring financial instruments held by the Funds,TDAM has assessed the Funds’ business model for managing theirrespective portfolios of investments and evaluating the performance on a fair value basis, and concluded that these financial assets andliabilities should be measured at FVTPL in accordance with IFRS 9.

Investment EntityIn determining whether a Fund meets the definition of an investmententity, TDAM may be required to make significant judgments aboutwhether a Fund has the typical characteristics of an investment entity.Each Fund may hold only one investment, an underlying fund (or haveonly one investor or have investors that are its related parties), however,consistent with the investment entity definition, each Fund primarilyobtains funds from one or more investors for the purpose of providinginvestment management services, commits to its investors that thebusiness purpose is to invest the funds solely for returns from capitalappreciation, investment income or both, and measures and evaluatesthe performance of its investments on a fair value basis.

5. Redeemable Units

For TD Mutual Fund Trusts and TD Managed Assets Program Portfolios,each individual series of units is sold under different purchase optionsand may have higher or lower management fees based on their specificattributes, as summarized below, reflecting the extent of the investmentadvice provided.

TD Mutual Fund TrustsEach TD Mutual Fund Trust is authorized to issue an unlimited number of units of multiple series that rank equally and are available for saleunder a single simplified prospectus. In addition, each of these Funds isalso authorized to issue an unlimited number of units of multiple seriesto be sold under a confidential offering memorandum or other separatesimplified prospectus. The various series that may be offered by theseFunds are as described below.

Investor Series: Offered on a no-load basis to investors.

H-Series: Offered on a no-load basis to investors who wish to receivea regular monthly cash flow from the Funds. Monthly distributions may consist of net income, net realized capitalgains and/or a return of capital.

Premium Series: Offered on a no-load basis to large investors and others who make the required minimum investment, as determinedby TDAM from time to time.

K-Series: Offered on a no-load basis to large investors and others who make the required minimum investment, as determinedby TDAM from time to time, and who wish to receive a regular monthly cash flow from the Funds. Monthlydistributions may consist of net income, net realized capitalgains, and/or a return of capital.

e-Series: Offered on a no-load basis to investors who want to complete their transactions electronically.

D-Series: Offered on a no-load basis to investors who want to complete their transactions through TD Direct Investing, a division of TDW, or other discount brokers.

Advisor Series: Offered to investors who seek investment advice and wantthe option of transacting on a front-end load, back-end load,low-load or low-load-2 basis.



T-Series: Offered to investors who seek investment advice; want theoption of transacting on a front-end load, back-end load,low-load or low-load-2 basis; and who wish to receive a regular monthly cash flow from the Funds. Monthlydistributions may consist of net income, net realized capitalgains and/or a return of capital.

F-Series: Offered to investors, through fee-based financial advisors or dealer-sponsored “wrap accounts”, and others who pay an annual fee to their dealer instead of transactionalsales charges.

S-Series: Offered to investors who wish to receive a regular monthlycash flow from the Funds, through fee-based financialadvisors or dealer-sponsored “wrap accounts”. This seriesmay also be offered to other investors who pay an annualfee to their dealer instead of transactional sales charges.Monthly distributions may consist of net income, net realizedcapital gains, and/or a return of capital.

Premium Offered to large investors, through fee-based financialF-Series: advisors or dealer-sponsored “wrap accounts”, and others

who pay an annual fee to their dealer instead of trans -actional sales charges. For this series, investors must makethe required minimum investment, as determined by TDAMfrom time to time.

PS Series: Offered to large investors who wish to receive a regularmonthly cash flow from the Funds, through fee-basedfinancial advisors or dealer-sponsored “wrap accounts”, and others who pay an annual fee to their dealer instead of transactional sales charges. For this series, investors must make the required minimum investment, as determinedby TDAM from time to time. Monthly distributions mayconsist of net income, net realized capital gains, and/ areturn of capital.

W-Series: Offered to investors, through certain wealth managementbusinesses of TD Bank Group, including certain divisions of TDW, or other dealers authorized by TDAM, who pay an annual fee to their dealer instead of transactionalsales charges.

Private Series and Private-EM Offered on a no-load basis to large investors who make the Series: required minimum investment as determined by TDAM, and

have entered into a Private Series agreement with TDAM.

Institutional Offered on a no-load basis to large investors, such as groupSeries: savings plans and others who make the required minimum

investment, as determined by TDAM from time to time.C-Series Offered on a no-load basis to large investors who make

the required minimum investment as determined by TDAMand have entered into a C-Series agreement with TDAM.

O-Series: Offered on a no-load basis to large investors who make the required minimum investment as determined by TDAM,and have entered into an O-Series agreement with TDAM.

TD Managed Assets Program PortfoliosEach TD Managed Assets Program Portfolio is authorized to issue anunlimited number of units of multiple series that rank equally and are available for sale under a single simplified prospectus. The variousseries that may be offered by these Funds are as described below.

Investor Series: Offered on a no-load basis to investors.

H-Series: Offered on a no-load basis to investors who wish to receivea regular monthly cash flow from the Funds. Monthly distributions may consist of net income, net realized capitalgains and/or a return of capital.

Premium Series: Offered on a no-load basis to large investors and others who make the required minimum investment, as determinedby TDAM from time to time.

K-Series: Offered on a no-load basis to large investors and others who make the required minimum investment, as determinedby TDAM from time to time, and who wish to receive a regular monthly cash flow from the Funds. Monthly distribu -tions may consist of net income, net realized capital gains,and/or a return of capital.

e-Series: Offered on a no-load basis to investors who want to complete their transactions electronically.

D-Series: Offered on a no-load basis to investors who want to complete their transactions through TD Direct Investing, a division of TDW, or other discount brokers.

Advisor Series: Offered to investors who seek investment advice and wantthe option of transacting on a front-end load, back-end load,low-load or low-load-2 basis.

T-Series: Offered to investors who seek investment advice; want theoption of transacting on a front-end load, back-end load,low-load or low-load-2 basis; and who wish to receive a regular monthly cash flow from the Funds. Monthlydistributions may consist of net income, net realized capitalgains and/or a return of capital.

F-Series: Offered to investors, through fee-based financial advisors or dealer-sponsored “wrap accounts”, and others who pay an annual fee to their dealer instead of transactionalsales charges.

S-Series: Offered to investors who wish to receive a regular monthlycash flow from the Funds, through fee-based financial advisors or dealer-sponsored “wrap accounts”. This seriesmay also be offered to other investors who pay an annualfee to their dealer instead of transactional sales charges.Monthly distributions may consist of net income, net realizedcapital gains, and/or a return of capital.

W-Series: Offered to investors, through certain wealth managementbusinesses of TD Bank Group, including certain divisions of TDW, or other dealers authorized by TDAM, who pay an annual fee to their dealer instead of transactionalsales charges.



WT-Series: Offered to investors who wish to receive a regular monthlycash flow from the Funds, through certain wealth manage -ment businesses of TD Bank Group, including certaindivisions of TDW, or other dealers authorized by TDAM, whopay an annual fee to their dealer instead of transactionalsales charges. Monthly distributions may consist of netincome, net realized capital gains, and/or a return of capital.

Units of TD Mutual Fund Trusts and TD Managed Assets ProgramPortfolios are redeemable at the option of the unitholder in accordancewith the provisions of the Declaration of Trust. Units of these Funds are issued or redeemed on a daily basis at the NAV per series unit nextdetermined after the subscription, switch, conversion order or redemp-tion request, respectively, is received by TDAM. Subscriptions andredemptions include units converted from one series to another serieswithin a Fund in the Statements of Changes in Net Assets Attributable to Holders of Redeemable Units. However, conversions between serieswithin a Fund are excluded from Proceeds from Issuances of RedeemableUnits and Amounts Paid on Redeemable Units, Net of Early RedemptionFees in the Statements of Cash Flows.

6. Related Party Transactions

Management Fees(a) TD Mutual Fund Trusts

In consideration for the provision of management, distribution and port-folio management services and oversight of any portfolio sub-advisoryservices provided to the TD Mutual Fund Trusts, TDAM receives an annualmanagement fee in respect of certain series of these Funds. The manage-ment fee is calculated and accrued on a daily basis for each series basedon the NAV of that series and paid monthly to TDAM. Where these Fundsinvest in any underlying funds, there are fees and expenses payable bythe underlying funds in addition to those paid by the Funds. However,there is no duplication of management fees paid to TDAM or its affiliatesif these Funds invest in underlying funds that are managed by TDAM.

No management fees are charged with respect to Private Series andO-Series units. Instead, unitholders in Private Series and O-Series unitsmay be charged a fee directly by TDAM.

Prior to July 27, 2017, the simplified prospectus disclosed the maximumannual management fee rate that TDAM could charge for each series of units of the TD Mutual Fund Trusts (so the actual management feebeing charged to these Funds might have been less than the maximumannual management fee rate). TDAM was able to charge the maximumannual management fee without notice to unitholders. Effective July 27, 2017, the simplified prospectus discloses a specified annualmanagement fee rate. Where TDAM chooses to charge a managementfee rate below the specified annual management fee rate, the differencerepresents a waiver of management fees and is included as WaivedExpenses in the Statements of Comprehensive Income. TDAM may waiveall or a portion of the management fees charged to these Funds, whichmay be discontinued at any time by TDAM at its discretion without noticeto unitholders. Detailed information on the management fees of theseFunds is provided in the Fund-Specific Notes.

(b) TD Managed Assets Program Portfolios(I) TD MANAGED ASSETS PROGRAM PORTFOLIOS

(Excluding TD Managed ETF Portfolios)

In consideration for the provision of management, distribution andportfolio management services to the TD Managed Assets ProgramPortfolios (other than the TD Managed ETF Portfolios), each series ofthese Funds pay TDAM an annual management fee. The management fee is calculated and accrued on a daily basis for each series based onthe NAV of that series and paid monthly to TDAM. Where these Fundsinvest in any underlying funds, there are fees and expenses payable bythe underlying funds in addition to those paid by the Funds. However,there is no duplication of management fees paid to TDAM or its affiliatesif these Funds invest in underlying funds that are managed by TDAM.

Prior to October 26, 2017, the simplified prospectus disclosed themaximum annual management fee rate that TDAM could charge for each series of units of these Funds (so the actual management fee being charged to these Funds might have been less than the maximumannual management fee rate). Effective October 26, 2017, the simplifiedprospectus discloses a specified annual management fee rate. WhereTDAM chooses to charge a management fee rate below the specifiedannual management fee rate, the difference represents a waiver ofmanagement fees and is included as Waived Expenses in the Statementsof Comprehensive Income. TDAM may waive all or a portion of themanagement fees being charged to these Funds, which may bediscontinued at any time by TDAM at its discretion without notice tounitholders. Detailed information on the management fees of theseFunds is provided in the Fund-Specific Notes.

(II) TD MANAGED ETF PORTFOLIOS

In consideration for the provision of management, distribution andportfolio management services to the TD Managed ETF Portfolios, each series of these Funds pay TDAM an annual management fee. Themanagement fee is calculated and accrued on a daily basis for eachseries based on the NAV of that series and paid monthly to TDAM.

Where a TD Managed ETF Portfolio invests in any underlying TD ETFs,there are fees and expenses payable by the underlying TD ETFs inaddition to those paid by the Funds. However, there is no duplication of management fees paid to TDAM or its affiliates. TDAM may waive all or a portion of the management fees being charged to these Funds,which may be discontinued at any time by TDAM at its discretion without notice to unitholders. Detailed information on the managementfees of these Funds is provided in the Fund-Specific Notes.



Administration Fees(a) TD Mutual Fund Trusts

In consideration for paying certain operating expenses, TDAM is paid anannual administration fee with respect to certain series of the TD MutualFund Trusts. The administration fee includes recordkeeping and commu -nication costs, custodial costs, certain legal fees, audit fees, regulatoryfiling fees and bank charges. The administration fee is calculated andaccrued on a daily basis for each series based on the NAV of the applicable series and paid monthly to TDAM. Annual administration feesfor each series of these Funds, where applicable, are provided in theFund-Specific Notes.

The administration fee is payable in respect of Investor Series, H-Series,D-Series, Advisor Series and T-Series of the TD Mutual Fund Trusts, asapplicable, other than the money market funds, TD Ultra Short Term BondFund, TD Short Term Bond Fund, TD Canadian Bond Fund, TD GlobalConservative Opportunities Fund, TD Global Balanced OpportunitiesFund, the Index funds and Advisor Series units of TD U.S. Equity Portfolio.The administration fee is also payable in respect of Premium Series andK-Series of TD Mutual Fund Trusts other than TD U.S. Money MarketFund, TD Short Term Bond Fund, TD Canadian Bond Fund, TD IncomeAdvantage Portfolio, TD Canadian Core Plus Bond Fund, TD CorporateBond Plus Fund, TD Global Conservative Opportunities Fund andTD Global Balanced Opportunities Fund.

No administration fee is charged with respect to other series of theTD Mutual Fund Trusts.

(b) TD Managed Assets Program Portfolios

Except for the TD Managed ETF Portfolios, no administration fee ischarged to the TD Managed Assets Program Portfolios. For theTD Managed ETF Portfolios, in consideration for paying certain operatingexpenses, TDAM is paid an annual administration fee with respect toD-Series of the Funds. The administration fee includes recordkeeping and communication costs, custodial costs, certain legal fees, audit fees,regulatory filing fees and bank charges. The administration fee iscalculated and accrued on a daily basis based on the NAV of D-Seriesand paid monthly to TDAM. Annual administration fees for D-Series ofthe Funds are provided in the Fund-Specific Notes.

Operating Expenses(a) Fund’s Independent Review Committee (“IRC”)

TDAM is responsible for management of the Funds’ investment portfolio,including the making of decisions relating to the investment of theFunds’ assets.

TDAM has established an IRC in respect of the Funds and the underlyingfunds managed by TDAM. The IRC acts as an impartial and independentcommittee to review and provide recommendations or, if appropriate,approvals respecting any transactions in which TDAM may have a conflictof interest.

The IRC has approved standing instructions to permit the Funds and/orthe underlying funds managed by TDAM to enter into the followingsecurities transactions:

(i) trades in securities of TD or any affiliate or associate thereof;(ii) investments in the securities of an issuer where TD Securities Inc.,

TDW, or any other affiliate of TDAM (a “Related Dealer”) acted as an underwriter during the distribution of such securities and the 60-day period following the completion of the distribution of the underwritten securities;

(iii) purchases or sales of securities of an issuer from or to anotherinvestment fund or discretionary managed account managed byTDAM; and

(iv) purchases of securities from or sales of securities to a RelatedDealer, where it acted as principal.

Investments in securities of TD, interests in underlying funds managed by TDAM, or investments in any affiliates that were held by the Funds at the end of the reporting period are disclosed in the Schedule ofInvestment Portfolio and/or the Fund-Specific Notes.

The compensation and relevant expenses of IRC members were allocatedamong the investment funds managed by TDAM and disclosed in theStatements of Comprehensive Income as Independent Review CommitteeFees.

(b) TD Mutual Fund Trusts

TDAM pays all of the operating expenses with respect to O-Series unitsof the TD Mutual Fund Trusts.

Private Series and Private-EM Series of the TD Mutual Fund Trusts and Advisor Series of TD U.S. Equity Portfolio bear their respective prorata share of the operating expenses of the applicable Fund which are common to the operation of all series of the Fund as well as thoseexpenses which are attributable solely to that series (which may bepayable to TDAM or its affiliates), including IRC costs, recordkeeping and communication costs, custodial, legal, audit and filing fees, bankcharges, borrowing costs, all taxes, costs relating to compliance with any new governmental and regulatory requirements, and new types of costs or expenses.

For other series of the TD Mutual Fund Trusts, TDAM pays all of theoperating expenses (including services provided by TDAM or itsaffiliates), other than costs and expenses associated with: all taxes;borrowing; the IRC; compliance with any new governmental andregulatory requirements, and new types of costs or expenses



(c) TD Managed Assets Program Portfolios

Except for the TD Managed ETF Portfolios, all operating expenses of theTD Managed Assets Program Portfolios (including for services providedby TDAM or its affiliates) are paid for by TDAM, including cost of the IRC, recordkeeping and communication costs, custodial, legal, audit andfiling fees, bank charges, borrowing costs, and all taxes on such costs.

For the TD Managed ETF Portfolios, TDAM pays certain operatingexpenses. Each TD Managed ETF Portfolio is responsible for payingexpenses associated with borrowing, the IRC, compliance with any new governmental and regulatory requirements, new types of costs or expenses, and all taxes on such costs and expenses.

Taxes on ExpensesThe Funds also pay applicable goods and services tax and harmonizedsales tax at a blended rate to TDAM on management fees, administrationfees and certain operating expenses based on the province or territory ofresidence of the investors in each series of the Funds, which are includedwith the respective expense in the Statements of Comprehensive Income.

Waived ExpensesTDAM, at its discretion, may waive or absorb a portion of the operatingexpenses otherwise payable by the Funds. These waivers or absorptionsmay be terminated at any time without notice to unitholders. The amount of expenses waived or absorbed is disclosed in the Statements of Comprehensive Income as Waived Expenses, where applicable.

The Accrued Liabilities in the Statements of Financial Positions representsthe amount of management fees, administration fees and operatingexpenses (including applicable taxes) payable to TDAM by the Funds atthe reporting period end.

Brokerage Commissions and Soft Dollars(a) TD Mutual Fund Trusts

Brokerage commissions (including other transaction costs) paid onsecurities transactions and amounts paid to related parties of TD for brokerage services provided to these Funds for the periods endedJune 30, 2018 and 2017, where applicable, are disclosed in the Fund-Specific Notes.

Client brokerage commissions are used as payment for order executionservices and/or research services. The portfolio advisers or TDAM mayselect brokers including its affiliates, who charge a commission in excess of that charged by other brokers (“soft dollars”) if they determinein good faith that the commission is reasonable in relation to the orderexecution and research services utilized.

For debt instruments traded in the over the counter markets where client brokerage commissions are not charged, soft dollars or clientbrokerage commissions are not generated. For equities or other securities where client brokerage commissions are charged, the softdollar portion of the amount paid or payable for goods and servicesother than order execution for the Funds is not generally ascertainable.Any ascertainable soft dollar value received as a percentage of totalbrokerage commissions paid under the soft dollar arrangement enteredinto by the portfolio advisers or TDAM, where applicable, is disclosed in the Fund-Specific Notes.

(b) TD Managed Assets Program Portfolios

Except for the TD Managed ETF Portfolios, these Funds did not incur any brokerage commissions during the periods ended June 30, 2018 and 2017 to execute transactions in the underlying funds, andaccordingly did not receive any investment or research services frombrokers in exchange for commissions paid by the Funds. For TD ManagedETF Portfolios, brokerage commissions paid on the purchase or sale of units of the underlying TD ETFs and amounts paid to related parties of TD for brokerage services provided to the Funds for the periods ended June 30, 2018 and 2017, where applicable, are disclosed in theFund-Specific Notes.

Certain of the underlying funds have incurred brokerage commissions, aportion of which may have been received by the underlying funds’ invest-ment advisers in the form of investment or research services (“soft dollars”). Such amounts for each of the underlying funds are disclosed in the underlying funds’ financial statements, where ascertainable.

7. Taxation

The Funds (except for TD Managed ETF Portfolios) qualify or intend toqualify as mutual fund trusts under the Income Tax Act (Canada) (“Tax Act”), unless otherwise disclosed in the Fund-Specific Notes.TD Managed ETF Portfolios qualify as unit trusts under the Tax Act. All or substantially all of the net investment income and sufficient amountsof net capital gains realized in any period are distributed to unitholderssuch that no income tax is payable by the Funds, except that in certaincircumstances, a Fund that is not a mutual fund trust may become liableto pay alternative minimum tax under the Tax Act. As a result of thedistribution, the Funds have determined that they are in substance nottaxable and therefore, do not record income taxes in the Statements of Comprehensive Income nor do they recognize any deferred tax assetsor liabilities in the Statements of Financial Position. The Funds’ capitaland/or non-capital losses, where applicable, are provided in the Fund-Specific Notes. Capital losses have no expiry. Non-Capital losses can becarried forward for up to twenty years.

The Funds currently incur withholding taxes imposed by certain countries on investment income and capital gains. Such income andgains are recorded on a gross basis and the related withholding taxesare reported as Tax Reclaims (Withholding Taxes) in the Statements of Comprehensive Income.



8. Financial Risk Management

Financial Risk FactorsEach Fund is exposed to a variety of financial risks: these may includemarket risk (including interest rate risk, currency risk, and other pricerisk), credit risk, liquidity risk and concentration risk. All investmentspresent a risk of loss of capital.

TDAM seeks to reduce financial risks by employing and overseeingprofessional and experienced portfolio advisers that regularly monitorthe Funds’ positions and market events and diversify investmentportfolios within the constraints of each Fund’s investment objectives,investment strategies and applicable TDAM policies and procedures(collectively referred to as “Investment Restrictions”).

If a Fund invests in underlying funds, TDAM seeks to reduce financialrisks by diversifying investments across the three main asset classes:money market investments for safety, bonds for income and equityinvestments for growth, where applicable. Since different types ofinvestments tend to move independently from one another, positiveperformance in one asset class may help to offset negative performancein another, thereby reducing volatility and overall risk in the long-term.

The Funds are managed in accordance with their respective InvestmentRestrictions.

(a) Market Risk(i) Interest Rate Risk

Interest rate risk arises from the possibility that changes in interest rateswill affect the future cash flows or the fair values of interest-bearinginvestments.

A Fund’s exposure to interest rate risk is concentrated in its investmentsin debt instruments (such as bonds and debentures) and interest ratederivative instruments, if any. Short-term investments, currencies andother assets and liabilities are short-term in nature and/or non-interestbearing and not subject to significant amounts of risk due to fluctuationsin the prevailing levels of market interest rates.

If a Fund invests in underlying funds, it is exposed to indirect interestrate risk to the extent of the interest-bearing financial instruments heldby the underlying funds. A Fund’s direct exposure to interest rate risk,where significant, is disclosed in the Fund-Specific Notes.

(ii) Currency Risk

A Fund may hold assets denominated in currencies other than itsfunctional currency. It is therefore exposed to currency risk, as the valueof the securities denominated in other currencies will fluctuate due tochanges in the foreign exchange rates of those currencies in relation tothe Fund’s functional currency.

Where a Fund invests in any underlying funds, it is exposed to indirectcurrency risk in the event that the underlying funds invest in financialinstruments that are denominated in a currency other than theunderlying funds’ functional currency.

A Fund may enter into foreign exchange forward contracts for hedgingpurposes to reduce its foreign currency exposure or to establish exposureto foreign currencies.

A Fund’s direct exposure to currency risk (including monetary and non-monetary instruments), where significant, is disclosed in the Fund-Specific Notes.

(iii) Other Price RiskOther price risk is the risk that securities will fluctuate in value becauseof changes in market prices (other than those arising from interest rate risk or currency risk). TDAM seeks to reduce this risk through itsInvestment Restrictions.

In determining each Fund’s sensitivity impact from exposure to otherprice risk, a historical beta may be used when applicable. Historical beta,a measure of the sensitivity of a fund’s returns to market returns, isgenerally derived from comparing 36 months of returns between a fundand its benchmark. As such, beta inherently includes effects previouslyreflected in the interest rate and currency risk disclosures. Historical betamay not be representative of future beta.

Where a Fund invests in a single underlying fund, it is exposed toindirect other price risk in the event that the underlying fund invests in equity securities that trade on a market. Where a Fund invests inseveral underlying funds, the exposure to other price risk includes allinvestments in underlying funds.

A Fund’s direct exposure to other price risk, where applicable, isdisclosed in the Fund-Specific Notes.

Except for written options and equities sold short, the maximum riskresulting from financial instruments is the fair value of the financialinstruments as presented in the Statements of Financial Position. Possiblelosses from written options and equities sold short can be unlimited.

(b) Credit RiskCredit risk is the risk that one party to a financial instrument will cause a financial loss to the other party by failing to discharge an obligation.Where applicable, a Fund’s main credit risk concentration is in debtinstruments and derivative instruments it holds. A Fund’s exposure tocredit risk is the risk that an issuer of investments or a counterparty toderivative instruments will be unable to pay amounts in full when due.All transactions in listed securities are settled or paid for upon deliveryusing approved brokers. The risk of default with a broker is consideredminimal, as delivery of securities sold is only made once the broker hasreceived payment. Payment is made on a purchase once the securitieshave been received by the broker. The trade will fail if either party fails to meet its obligation.

A Fund may be exposed to credit risk from the use of counterparties for foreign exchange forward contracts. Where applicable, this risk isminimized by:

(i) using counterparties with a minimum credit rating of A byS&P Global Ratings (“SPGR”) or an equivalent rating from another recognized credit rating agency;

(ii) limiting the term of the foreign exchange forward contractsto a maximum of 365 days; and,

(iii) limiting the mark-to-market exposure to any one counterparty to 10 percent of the portfolio value.



A Fund may also be exposed indirectly to credit risk if it invests inunderlying funds in the event that the underlying funds invest in debtinstruments and derivatives.

The Funds and the underlying funds managed by TDAM only buy and hold short-term notes with a minimum R1- Low credit rating byDBRS Limited or an equivalent rating from another recognized creditrating agency.

The Funds’ direct exposure to short-term and/or debt instruments, by ratings categories, where applicable, are disclosed in the Fund-Specific Notes.

The TD Mutual Fund Trusts may also engage in securities lendingtransactions with counterparties that have a minimum credit rating of A by SPGR or an equivalent rating from another credit agency. The value of cash or securities held as collateral by these Funds inconnection with these transactions is at least 102 percent of the fairvalue of the securities loaned. The collateral and loaned securities are marked to market on each business day. The aggregate fair value of the securities loaned is limited to 50 percent of each Fund’s NAV.Information about the fair values of securities lent and collateral heldand securities lending income earned, where applicable, is disclosed in the Fund-Specific Notes.

In the TD Managed Assets Program Portfolios, where applicable, theportfolio adviser reviews these Funds’ credit positions as part of theinvestment management process.

(c) Liquidity RiskLiquidity risk is defined as the risk that a fund may not be able to settle or meet its obligations on time or at a reasonable price. A fund’sexposure to this risk is concentrated in the daily cash redemptions ofredeemable units. The Funds primarily invest in securities that are tradedin active markets and can be readily disposed. In addition, the Fundsretain sufficient cash and cash equivalents to maintain liquidity, andhave the ability to borrow up to 5 percent of their respective NAV for the purpose of funding redemptions.

The contractual maturities analysis for a Fund’s financial liabilities, where applicable, is disclosed in the Fund-Specific Notes.

(d) Concentration RiskConcentration risk arises as a result of the concentration of exposureswithin the same category, whether it is geographical location, securitytype or industry sector. A Fund’s concentration risk is disclosed in theFund-Specific Notes.

9. Capital Risk Management

Units issued and outstanding represent the capital of the Funds. The Funds do not have any specific capital requirements on thesubscription and redemption of units, other than certain minimumsubscription requirements. Changes in a Fund’s capital during thereporting periods are reflected in the Statements of Changes in Net Assets Attributable to Holders of Redeemable Units. TDAM isresponsible for managing the capital of the Funds in accordance witheach Fund’s investment objectives and for managing liquidity in order to meet redemption requests.

If applicable, the most recent financial statements of the underlyingfunds managed by TDAM are available, without charge, by writing toTD Asset Management Inc., P.O. Box 100, 66 Wellington Street West,TD Bank Tower, Toronto-Dominion Centre, Toronto, Ontario, M5K 1G8, or by e-mail to [email protected], or by visiting our website atwww.tdassetmanagement.com or the SEDAR website at www.sedar.com



Currency codes used throughout the report:

Currency Code Description

ARS Argentine PesoAUD Australian DollarBRL Brazilian RealCAD/C$ Canadian DollarCHF Swiss FrancCLP Chilean PesoCZK Czech KorunaDEM German Deutsche MarkDKK Danish KroneEGP Egyptian PoundEUR EuroGBP British PoundHKD Hong Kong DollarHUF Hungarian ForintIDR Indonesian RupiahINR Indian RupeeILS Israeli ShekelJOD Jordanian DinarJPY Japanese YenKRW South Korean WonLKR Sri Lanka RupeeMAD Moroccan DirhamMYR Malaysian RinggitNOK Norwegian KroneNZD New Zealand DollarPHP Philippine PesoPKR Pakistan RupeePLN Polish ZlotyRON Romanian LeuSEK Swedish KronaSGD Singapore DollarTHB Thai BahtTRY New Turkish LiraTWD New Taiwan DollarUSD/US$ United States DollarZAR South African Rand

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For Funds with references to FTSE TMX Canada indices:FTSE TMX Global Debt Capital Markets Inc. 2018 “FTSE®” is a trade mark of FTSE International Ltd and is used under licence. “TMX” is a trade mark of TSX Inc. and is used under licence. All rights in the FTSE TMX Global Debt Capital Markets Inc.’s indices and/or FTSE TMX Global Debt Capital Markets Inc.’s ratings vest in FTSE TMX Global Debt Capital Markets Inc. and/or its licensors.Neither FTSE TMX Global Debt Capital Markets Inc. nor its licensors accept any liability for any errors or omissions in such indices and/or ratings or underlying data. No further distribution of FTSE TMX Global Debt Capital Markets Inc.’s data is permitted without FTSE TMX Global Debt Capital Markets Inc.’s express written consent.

TD Mutual Funds, TD Pools and the TD Managed Assets Program portfolios are managed by TD Asset Management Inc., a wholly-ownedsubsidiary of The Toronto-Dominion Bank and are available through authorized dealers.

Epoch Investment Partners, Inc. (“Epoch”) is a wholly-owned subsidiary of The Toronto-Dominion Bank and an affiliate of TD AssetManagement. TD Asset Management operates in Canada through TD Asset Management, Inc. and in the U.S. through TDAM USA 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.

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Semi Annual Financial Reports - TD Asset Management

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