TD International Index Fund
532212 (03/20)
TD Mutual Funds Annual Financial Statements for the period ended December 31, 2019 nManagement’s Responsibility for Financial Reporting
The accompanying financial statements have been prepared by TD Asset Management Inc. (“TDAM”), as manager of the TD Mutual Fund Trusts, TD Managed Assets Program Portfolios and TD Managed ETF Portfolios (collectively the “Funds” and individually the “Fund”) and approved by TDAM’s board of directors. The manager is responsible for the integrity, objectivity and reliability of the data presented. This responsibility includes selecting appropriate accounting principles and making judgments and estimates consistent with International Financial Reporting Standards as issued by the International Accounting Standards Board (“IFRS”). The manager is also responsible for the development of internal controls over the financial reporting process, which are designed to provide 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 approving the financial statements and overseeing management’s performance of its financial reporting responsibilities.
PricewaterhouseCoopers LLP is the external auditor of the Funds. The auditor has audited the financial statements in accordance with Canadian generally accepted auditing standards to enable them to express their opinion on the financial statements. The auditor’s report is included on the follow ing page of this annual report.
On behalf of TDAM, manager of the Funds.
Bruce Cooper Salma Salman Director and Director and Chief Executive Officer Chief Financial Officer March 13, 2020 March 13, 2020
December 31, 2019 1 Annual Financial Statements nIndependent Auditor’s Report
To the Unitholders and Trustee of:
TD Canadian Money Market Fund TD Global Risk Managed Equity Fund TD Fixed Income Pool TD Premium Money Market Fund TD Global Low Volatility Fund TD Risk Management Pool TD U.S. Money Market Fund TD International Growth Fund TD Canadian Equity Pool TD Ultra Short Term Bond Fund TD Global Equity Focused Fund TD Global Equity Pool TD Short Term Bond Fund TD International Stock Fund TD Tactical Pool TD Canadian Bond Fund TD Emerging Markets Low Volatility Fund TD Managed Income Portfolio TD Income Advantage Portfolio TD Asian Growth Fund TD Managed Income & Moderate TD Canadian Core Plus Bond Fund TD Emerging Markets Fund Growth Portfolio TD Canadian Corporate Bond Fund Epoch U.S. Shareholder Yield Fund TD Managed Balanced Growth Portfolio TD Corporate Bond Plus Fund Epoch U.S. Blue Chip Equity Fund TD Managed Aggressive Growth Portfolio TD U.S. Corporate Bond Fund Epoch U.S. Blue Chip Equity TD Managed Maximum Equity TD Real Return Bond Fund Currency Neutral Fund Growth Portfolio TD Global Income Fund Epoch U.S. Large-Cap Value Fund TD FundSmart Managed Income TD Global Core Plus Bond Fund Epoch Global Shareholder Yield Fund & Moderate Growth Portfolio TD Global Unconstrained Bond Fund Epoch Global Equity Fund TD FundSmart Managed TD High Yield Bond Fund Epoch International Equity Fund Balanced Growth Portfolio TD Global Conservative Opportunities Fund TD Resource Fund TD FundSmart Managed TD Global Balanced Opportunities Fund TD Precious Metals Fund Aggressive Growth Portfolio TD Monthly Income Fund TD Global Entertainment TD Managed Index Income Portfolio TD Tactical Monthly Income Fund & Communications Fund TD Managed Index Income TD U.S. Monthly Income Fund TD Science & Technology Fund & Moderate Growth Portfolio TD U.S. Monthly Income Fund – C$ TD Health Sciences Fund TD Managed Index Balanced TD Diversified Monthly Income Fund TD Canadian Bond Index Fund Growth Portfolio TD Global Tactical Monthly Income Fund TD Balanced Index Fund TD Managed Index Aggressive (formerly TD Strategic Yield Fund) TD Canadian Index Fund Growth Portfolio TD Balanced Growth Fund TD Dow Jones Industrial Average Index Fund TD Managed Index Maximum Equity TD Dividend Income Fund TD U.S. Index Fund Growth Portfolio TD Canadian Diversified Yield Fund TD U.S. Index Currency Neutral Fund TD Managed Income ETF Portfolio TD Canadian Low Volatility Fund TD Nasdaq® Index Fund TD Managed Income & Moderate Growth TD Dividend Growth Fund TD International Index Fund ETF Portfolio TD Canadian Blue Chip Dividend Fund TD International Index TD Managed Balanced Growth ETF Portfolio TD Canadian Large-Cap Equity Fund Currency Neutral Fund TD Managed Aggressive Growth ETF Portfolio TD Canadian Equity Fund TD European Index Fund TD Managed Maximum Equity Growth TD Canadian Small-Cap Equity Fund TD US$ Retirement Portfolio ETF Portfolio TD U.S. Risk Managed Equity Fund TD Retirement Conservative Portfolio (individually, a Fund) TD U.S. Low Volatility Fund TD Retirement Balanced Portfolio
TD North American Dividend Fund TD Advantage Balanced Income Portfolio TD U.S. Dividend Growth Fund TD Advantage Balanced Portfolio TD U.S. Blue Chip Equity Fund TD Advantage Balanced Growth Portfolio TD U.S. Quantitative Equity Fund TD Comfort Conservative Income Portfolio TD U.S. Equity Portfolio TD Comfort Balanced Income Portfolio TD North American Small-Cap Equity Fund TD Comfort Balanced Portfolio TD U.S. Mid-Cap Growth Fund TD Comfort Balanced Growth Portfolio TD U.S. Small-Cap Equity Fund TD Comfort Growth Portfolio TD Comfort Aggressive Growth Portfolio
December 31, 2019 2 Annual Financial Statements nIndependent Auditor’s Report
Our opinion Responsibilities of management and those charged In our opinion, the accompanying December 31, 2019 financial statements with governance for the financial statements of each Fund present fairly, in all material respects, the financial position Management is responsible for the preparation and fair presentation of of each Fund, its financial performance and its cash flows as at and for the financial statements of each Fund in accordance with IFRS, and for the periods indicated in note 1 in accordance with International Financial such internal control as management determines is necessary to enable Reporting Standards as issued by the International Accounting Standards the preparation of financial statements that are free from material Board (IFRS). misstatement, whether due to fraud or error.
WHAT WE HAVE AUDITED In preparing the financial statements, management is responsible for The financial statements of each Fund comprise: assessing the ability of each Fund to continue as a going concern, • the statements of financial position as at the period-end dates disclosing, as applicable, matters related to going concern and using the indicated in note 1; going concern basis of accounting unless management either intends to • the statements of comprehensive income for the periods indicated liquidate any Fund or to cease operations, or has no realistic alternative in note 1; but to do so. • the statements of changes in net assets attributable to holders of Those charged with governance are responsible for overseeing the redeemable units for the periods indicated in note 1; financial reporting process of each Fund. • the statements of cash flows for the periods indicated in note 1; and • the notes to the financial statements, which include a summary Auditor’s responsibilities for the audit of the of significant accounting policies. financial statements Our objectives are to obtain reasonable assurance about whether the Basis for opinion financial statements as a whole for each Fund are free from material We conducted our audit in accordance with Canadian generally accepted misstatement, whether due to fraud or error, and to issue an auditor’s auditing standards. Our responsibilities under those standards are further report that includes our opinion. Reasonable assurance is a high level of described in the Auditor’s responsibilities for the audit of the financial assurance, but is not a guarantee that an audit conducted in accordance statements section of our report. with Canadian generally accepted auditing standards will always detect a We believe that the audit evidence we have obtained is sufficient and material misstate ment when it exists. Misstatements can arise from fraud appropriate to provide a basis for our opinion. or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of INDEPENDENCE users taken on the basis of the financial statements of each Fund. We are independent of each Fund in accordance with the ethical As part of an audit in accordance with Canadian generally accepted requirements that are relevant to our audit of the financial statements in auditing standards, we exercise professional judgment and maintain Canada. We have fulfilled our other ethical responsibilities in accordance professional skepticism throughout the audit. We also: with these requirements. • Identify and assess the risks of material misstatement of the financial statements of each Fund, whether due to fraud or error, design and Other information perform audit procedures responsive to those risks, and obtain audit Management is responsible for the other information of each Fund. The other information comprises the Annual Management Report of evidence that is sufficient and appropriate to provide a basis for our Fund Performance of each Fund. opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may Our opinion on the financial statements does not cover the other informa- involve collusion, forgery, intentional omissions, misrepresentations, tion and we do not express any form of assurance conclusion thereon. or the override of internal control. In connection with our audit of the financial statements of each Fund, • Obtain an understanding of internal control relevant to the audit our responsibility is to read the other information identified above and, in order to design audit procedures that are appropriate in the in doing so, consider whether the other information is materially circumstances, but not for the purpose of expressing an opinion on inconsistent with the financial statements of each Fund or our knowledge the effectiveness of the internal control of each Fund. obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
December 31, 2019 3 Annual Financial Statements Independent Auditor’s Report
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. • Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the ability of each Fund to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements of each Fund or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause any Fund to cease to continue as a going concern. • Evaluate the overall presentation, structure and content of the financial statements of each Fund, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
Chartered Professional Accountants, Licensed Public Accountants Toronto, Ontario March 13, 2020
December 31, 2019 4 Annual Financial Statements nTD International Index Fund
Statements of Financial Position (in 000s except per unit amounts) Statements of Comprehensive Income (in 000s except per unit amounts) as at December 31, 2019 and 2018 for the periods ended December 31, 2019 and 2018
2019 2018 2019 2018 Assets Income Current Assets Net Gain (Loss) on Investments and Derivatives Investments $ 809,733 $ 679,021 Dividend Income $ 28,901 $ 24,854 Derivative Assets (Note 3) 37 0 Interest for Distribution Purposes 18 13 Cash 1,258 863 Distributions from Underlying Funds 72 0 Interest and Dividends Receivables 763 831 Net Realized Gain (Loss) 2,685 2,351 Income Receivable from Underlying Funds 72 0 Net Change in Unrealized Appreciation/ Subscriptions Receivable 2,013 1,740 Depreciation 80,549 (69,727) Receivable for Investments Sold 350 454 Net Gain (Loss) on Investments and Derivatives 112,225 (42,509) 814,226 682,909 Foreign Exchange Gain (Loss) on Liabilities Cash and Other Net Assets (142) (44) Current Liabilities Securities Lending Income 397 373 Derivative Liabilities (Note 3) 0 2 Total Income (Net) 112,480 (42,180) Accrued Liabilities 0 0 Expenses (Note 6) Redemptions Payable 1,288 1,830 Management Fees 3,156 3,118 Distributions Payable 1 0 Independent Review Committee Fees 2 2 Payable for Investments Purchased 934 160 Interest Charges 1 1 2,223 1,992 Transaction Costs 148 164 Net Assets Attributable to Holders Total Expenses before Waivers 3,307 3,285 of Redeemable Units $ 812,003 $ 680,917 Less: Waived Expenses (2) (1) Net Assets Attributable to Holders Total Expenses (Net) 3,305 3,284 of Redeemable Units – Per Series (Note 5) Increase (Decrease) in Net Assets Attributable Investor Series $ 52,666 $ 58,046 to Holders of Redeemable Units before Tax 109,175 (45,464) e-Series $ 566,272 $ 466,903 Tax Reclaims (Withholding Taxes) (3,124) (2,787) Institutional Series N/A N/A F-Series $ 24,001 $ 13,355 Increase (Decrease) in Net Assets Attributable O-Series $ 169,064 $ 142,613 to Holders of Redeemable Units $ 106,051 $ (48,251) $ 812,003 $ 680,917 Increase (Decrease) in Net Assets Attributable Net Assets Attributable to Holders to Holders of Redeemable Units – Per Series of Redeemable Units – Per Series Unit Investor Series $ 7,799 $ (4,583) Investor Series $ 13.77 $ 12.34 e-Series $ 73,312 $ (33,206) Institutional Series N/A $ (44) e-Series $ 14.25 $ 12.73 F-Series $ 2,295 $ (994) Institutional Series N/A N/A O-Series $ 22,645 $ (9,424) F-Series $ 10.73 $ 9.57 $ 106,051 $ (48,251) O-Series $ 12.95 $ 11.57 Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units – Per Series Unit Investor Series $ 1.84 $ (1.00) e-Series $ 1.91 $ (0.95) Institutional Series N/A $ (0.24) F-Series $ 1.41 $ (0.81) O-Series $ 1.81 $ (0.78)
The accompanying notes are an integral part of the financial statements.
December 31, 2019 5 Annual Financial Statements nTD International Index Fund
Statements of Changes in Net Assets Attributable to Holders of Redeemable Units (in 000s) for the periods ended December 31, 2019 and 2018 Investor Series e-Series Institutional Series
2019 2018 2019 2018 2019 2018 Net Assets Attributable to Holders of Redeemable Units at Beginning of the Period $ 58,046 $ 56,859 $ 466,903 $ 457,975 N/A $ 11,781 Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units 7,799 (4,583) 73,312 (33,206) N/A (44) Distributions to Holders of Redeemable Units From Net Investment Income (1,466) (1,334) (15,692) (12,751) N/A 0 From Net Realized Gains on Investments 0 0 0 0 N/A 0 (1,466) (1,334) (15,692) (12,751) N/A 0 Redeemable Unit Transactions Proceeds from Redeemable Units Issued 11,239 18,083 103,990 113,589 N/A 412 Reinvestments of Distributions 1,445 1,314 15,088 12,245 N/A 0 Redemption of Redeemable Units (24,397) (12,293) (77,329) (70,949) N/A (12,149) Net Increase (Decrease) from Redeemable Unit Transactions (11,713) 7,104 41,749 54,885 N/A (11,737) Net Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units (5,380) 1,187 99,369 8,928 N/A (11,781) Net Assets Attributable to Holders of Redeemable Units at End of the Period $ 52,666 $ 58,046 $ 566,272 $ 466,903 N/A $ N/A Redeemable Unit Transactions Redeemable Units Outstanding, Beginning of the Period 4,702 4,190 36,690 32,752 N/A 649 Redeemable Units Issued 852 1,332 7,634 8,153 N/A 22 Redeemable Units Issued on Reinvestments 108 99 1,091 899 N/A 0 Redeemable Units Redeemed (1,838) (919) (5,673) (5,114) N/A (671) Redeemable Units Outstanding, End of the Period 3,824 4,702 39,742 36,690 N/A N/A Weighted Average Units Outstanding 4,234 4,591 38,359 35,012 N/A 186
F-Series O-Series TOTAL
2019 2018 2019 2018 2019 2018 Net Assets Attributable to Holders of Redeemable Units at Beginning of the Period $ 13,355 $ 10,069 $ 142,613 $ 151,348 $ 680,917 $ 688,032 Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units 2,295 (994) 22,645 (9,424) 106,051 (48,251) Distributions to Holders of Redeemable Units From Net Investment Income (490) (326) (5,395) (4,745) (23,043) (19,156) From Net Realized Gains on Investments 0 0 0 0 0 0 (490) (326) (5,395) (4,745) (23,043) (19,156) Redeemable Unit Transactions Proceeds from Redeemable Units Issued 11,693 6,811 32,519 36,068 159,441 174,963 Reinvestments of Distributions 470 314 5,395 4,745 22,398 18,618 Redemption of Redeemable Units (3,322) (2,519) (28,713) (35,379) (133,761) (133,289) Net Increase (Decrease) from Redeemable Unit Transactions 8,841 4,606 9,201 5,434 48,078 60,292 Net Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units 10,646 3,286 26,451 (8,735) 131,086 (7,115) Net Assets Attributable to Holders of Redeemable Units at End of the Period $ 24,001 $ 13,355 $ 169,064 $ 142,613 $ 812,003 $ 680,917 Redeemable Unit Transactions Redeemable Units Outstanding, Beginning of the Period 1,396 959 12,326 11,903 Redeemable Units Issued 1,119 651 2,619 2,858 Redeemable Units Issued on Reinvestments 45 31 430 383 Redeemable Units Redeemed (324) (245) (2,320) (2,818) Redeemable Units Outstanding, End of the Period 2,236 1,396 13,055 12,326 Weighted Average Units Outstanding 1,630 1,223 12,486 12,072
The accompanying notes are an integral part of the financial statements.
December 31, 2019 6 Annual Financial Statements nTD International Index Fund
Statements of Cash Flows (in 000s) for the periods ended December 31, 2019 and 2018
2019 2018 Cash Flows from (used in) Operating Activities Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units $ 106,051 $ (48,251) Adjustment For: Unrealized Foreign Exchange (Gain) Loss on Cash 5 (6) Net Realized (Gain) Loss (2,685) (2,351) Net Change in Unrealized Appreciation/ Depreciation (80,549) 69,727 Purchase of Investments and Derivatives (151,585) (166,737) Distributions In-Kind from Underlying Funds (72) 0 Proceeds from Sale, Paydown and Maturity of Investments and Derivatives 105,018 103,585 (Increase) Decrease in Interest and Dividends Receivables 68 (151) (Increase) Decrease in Income Receivable from Underlying Funds (72) 0 Increase (Decrease) in Accrued Liabilities 0 0 Net Cash from (used in) Operating Activities (23,821) (44,184) Cash Flows from (used in) Financing Activities Distributions Paid to Holders of Redeemable Units, Net of Reinvested Distributions (644) (538) Proceeds from Issuances of Redeemable Units 143,291 173,245 Amounts Paid on Redemption of Redeemable Units (118,426) (128,894) Net Cash from (used in) Financing Activities 24,221 43,813 Unrealized Foreign Exchange Gain (Loss) on Cash (5) 6 Net Increase (Decrease) in Cash 400 (371) Cash (Bank Overdraft) at Beginning of the Period 863 1,228 Cash (Bank Overdraft) at End of the Period $ 1,258 $ 863
Interest for Distribution Purposes Received*, Net of Withholding Taxes $ 18 $ 13 Dividends Received*, Net of Withholding Taxes $ 25,851 $ 21,919 * Included as part of Cash Flows from (used in) Operating Activities.
The accompanying notes are an integral part of the financial statements.
December 31, 2019 7 Annual Financial Statements TD International Index Fund No. of Shares n or Units/ Par Value Description Cost Fair Value
Schedule of Investment Portfolio (in 000s except number of Shares 141,015 Westpac Banking Corporation $ 3,722 $ 3,114 or Units/Par Value) as at December 31, 2019 5,324 WiseTech Global Limited 126 113 No. of Shares 38,291 Woodside Petroleum Limited 1,301 1,200 or Units/ 52,998 Woolworths Group Limited 1,334 1,746 Par Value Description Cost Fair Value 46,465 54,924 Australia – 6.8% 7,816 Afterpay Limited $ 184 $ 209 Austria – 0.3% 26,974 AGL Energy Limited 441 505 2,927 ams AG 180 154 98,473 Alumina Limited 249 206 2,928 Andritz AG 182 164 137,136 AMP Limited 699 239 1,995 BAWAG Group AG 112 118 48,487 APA Group 357 490 195 CA Immobilien Anlagen AG 10 11 23,473 Aristocrat Leisure Limited 299 720 13,887 Erste Group Bank AG 669 679 7,919 ASX Limited 318 566 4,345 IMMOFINANZ AG 164 151 80,060 Aurizon Holdings Limited 312 382 9,199 OMV AG 586 671 115,688 Australia & New Zealand 5,954 Raiffeisen Bank International AG 311 194 Banking Group Limited 2,916 2,597 977 Telekom Austria AG 10 10 169,000 BGP NPV 0 0 2,740 Verbund AG 150 179 120,492 BHP Group Limited 3,250 4,273 278 Vienna Insurance Group AG 86,049 BHP Group PLC 2,095 2,630 Wiener Versicherung Gruppe 10 10 21,460 BlueScope Steel Limited 253 295 4,669 Voestalpine AG 250 169 47,161 Boral Limited 269 193 2,634 2,510 64,967 Brambles Limited 653 694 10,046 Caltex Australia Limited 282 311 Belgium – 1.1% 23,536 Challenger Limited 208 174 907 Ackermans & van Haaren NV 186 185 3,914 CIMIC Group Limited 105 118 7,500 Ageas 1,307 576 20,388 Coca-Cola Amatil Limited 177 205 35,058 Anheuser-Busch InBev NV 3,230 3,713 2,373 Cochlear Limited 215 486 2,310 Colruyt SA 123 156 46,416 Coles Group Limited 556 628 1,744 Galapagos NV 435 474 72,408 Commonwealth Bank of Australia 4,402 5,272 3,323 Groupe Bruxelles Lambert SA 396 455 19,658 Computershare Limited 219 301 11,475 KBC Group NV 964 1,121 14,092 Crown Resorts Limited 171 154 6,119 Proximus SADP 266 227 18,534 CSL Limited 1,270 4,657 616 Sofina SA 178 173 44,706 Dexus 327 477 3,059 Solvay SA, Class ‘A’ 463 460 61,565 Fortescue Metals Group Limited 268 600 1,893 Telenet Group Holding NV 103 110 67,092 Goodman Group 340 817 5,180 UCB SA 449 535 94,297 Insurance Australia Group Limited 525 658 8,186 Umicore SA 270 517 23,348 LendLease Group 317 374 8,370 8,702 14,369 Macquarie Group Limited 1,075 1,805 5,071 Magellan Financial Group Limited 232 263 Chile – 0.0% 114,021 Medibank Private Limited 269 328 15,863 Antofagasta PLC 225 250 158,201 Mirvac Group 321 458 118,073 National Australia Bank Limited 3,369 2,650 China – 0.2% 31,564 Newcrest Mining Limited 724 870 198,000 CSPC Pharmaceutical Group Limited 685 613 55,163 Oil Search Limited 422 364 101,500 Fosun International Limited 185 192 15,284 Orica Limited 302 306 207,000 Geely Automobile Holdings Limited 531 526 72,289 Origin Energy Limited 592 557 106,800 Yangzijiang Shipbuilding Holdings Limited 110 115 63,946 Qantas Airways Limited 383 414 1,511 1,446 54,376 QBE Insurance Group Limited 857 638 5,691 Ramsay Health Care Limited 229 376 Curacao – 0.1% 2,120 REA Group Limited 102 200 3,420 HAL Trust 697 717 74,119 Santos Limited 510 553 216,659 Scentre Group 763 756 Denmark – 1.7% 18,502 Sonic Healthcare Limited 318 485 145 AP Moeller – Maersk AS, Class ‘A’ 329 255 203,505 South32 Limited 429 501 263 AP Moeller – Maersk AS, Class ‘B’ 552 493 94,518 Stockland 410 398 4,360 Carlsberg AS, Class ‘B’ 481 845 51,508 Suncorp Group Limited 656 608 4,240 Chr. Hansen Holding AS 397 437 91,462 Sydney Airport 586 722 4,846 Coloplast AS, Class ‘B’ 317 781 83,566 Tabcorp Holdings Limited 488 345 27,032 Danske Bank AS 991 568 485,689 Telstra Corporation Limited 1,701 1,567 4,568 Demant AS 110 187 78,422 The GPT Group 380 400 9,511 DSV Panalpina AS 604 1,423 108,366 Transurban Group 984 1,472 2,656 Genmab AS 520 767 29,516 Treasury Wine Estates Limited 231 437 2,804 H Lundbeck AS 202 139 131,007 Vicinity Centres 336 297 7,552 ISS AS 293 235 46,377 Wesfarmers Limited 1,636 1,750 69,098 Novo Nordisk AS, Class ‘B’ 2,615 5,208 8,807 Novozymes AS, Class ‘B’ 326 560
December 31, 2019 8 Annual Financial Statements TD International Index Fund
No. of Shares No. of Shares or Units/ or Units/ Par Value Description Cost Fair Value Par Value Description Cost Fair Value
6,813 Orsted AS $ 394 $ 915 107,425 TOTAL SA $ 7,604 $ 7,699 4,861 Tryg AS 107 187 5,672 Unibail-Rodamco-Westfield 1,487 1,162 7,945 Vestas Wind Systems AS 558 1,042 23,060 VINCI SA 2,062 3,325 8,796 14,042 30,425 Vivendi SA 1,088 1,144 61,024 79,055 Faroe Islands – 0.0% 1,821 Bakkafrost P/F 161 175 Germany – 8.0% 7,402 adidas AG 966 3,125 Finland – 1.1% 17,361 Allianz SE 3,678 5,523 5,873 Elisa Oyj, Class ‘A’ 211 421 37,569 BASF SE 3,225 3,686 18,206 Fortum Oyj 498 584 38,240 Bayer AG 4,241 4,056 3,617 Huhtamaki Oyj 219 218 13,542 Bayerische Motoren Werke AG 1,233 1,443 2,713 Kesko Oyj, Class ‘B’ 243 249 2,236 Bayerische Motoren Werke AG, Preference 172 179 13,902 KONE Oyj, Class ‘B’ 547 1,180 4,119 Beiersdorf AG 402 640 5,123 Metso Oyj 237 263 41,504 Commerzbank AG 1,114 334 16,144 Neste Oyj 294 730 4,478 Continental AG 763 752 230,525 Nokia Oyj 2,981 1,107 7,168 Covestro AG 708 433 124,957 Nordea Bank Abp 1,239 1,319 32,547 Daimler AG 2,631 2,340 3,395 Orion Oyj 120 204 80,050 Deutsche Bank AG 3,410 807 18,178 Sampo Oyj 819 1,031 7,722 Deutsche Boerse AG 912 1,576 24,101 Stora Enso Oyj 368 455 19,499 Deutsche Lufthansa AG 489 466 21,539 UPM-Kymmene Oyj 576 970 40,057 Deutsche Post AG 1,482 1,984 21,631 Wartsila Oyj Abp, Class ‘B’ 337 311 135,894 Deutsche Telekom AG 2,824 2,884 8,689 9,042 14,603 Deutsche Wohnen SE 486 775 90,072 E.ON SE 2,474 1,250 France – 9.7% 7,781 Evonik Industries AG 345 308 7,569 Accor SA 497 460 8,768 Fresenius Medical Care AG 1,233 Aeroports de Paris 190 316 & Company KGaA 705 842 19,328 Air Liquide SA 2,055 3,553 17,075 Fresenius SE & Company KGaA 1,043 1,248 23,817 Airbus SE 1,731 4,527 2,471 Hannover Rueck SE 250 620 2,534 Amundi SA 285 258 6,080 HeidelbergCement AG 560 575 92,009 AXA SA 3,150 3,365 4,265 Henkel AG & Company KGaA 372 522 46,763 BNP Paribas SA 4,101 3,599 7,324 Henkel AG & Company KGaA, Preference 734 983 35,595 Bollore SA 229 202 1,436 HOCHTIEF AG 243 238 11,942 Bouygues SA 674 659 51,136 Infineon Technologies AG 769 1,513 6,389 Capgemini SE 647 1,013 1,946 Knorr-Bremse AG 284 257 24,442 Carrefour SA 1,147 532 5,272 Merck KGaA 492 809 7,241 CNP Assurances 194 187 2,125 MTU Aero Engines AG 503 788 21,550 Compagnie de Saint-Gobain 1,335 1,146 6,015 Munchener Ruckversicherungs- 7,075 Compagnie Generale des Gesellschaft AG 1,323 2,304 Etablissements Michelin SCA 814 1,124 6,280 Porsche Automobil Holding SE 610 610 52,018 Credit Agricole SA 1,168 979 22,553 RWE AG 1,404 898 25,256 Danone SA 2,121 2,719 41,267 SAP SE 3,751 7,232 5,378 Dassault Systemes SE 421 1,148 1,431 Sartorius AG 274 398 36,503 Electricite de France SA 936 528 33,089 Siemens AG 4,338 5,617 74,707 Engie SA 2,408 1,567 6,035 Siemens Healthineers AG 320 376 11,594 EssilorLuxottica SA 1,456 2,293 5,252 Symrise AG 427 718 1,298 Hermes International 686 1,260 1,694 Talanx AG 103 109 3,100 Kering SA 874 2,642 35,899 Telefonica Deutschland Holding AG 206 135 8,220 Klepierre SA 438 405 20,198 thyssenkrupp AG 659 354 10,946 Legrand SA 639 1,158 1,306 Volkswagen AG 280 329 10,287 L’Oreal SA 1,910 3,956 7,591 Volkswagen AG, Preference 1,335 1,949 10,798 LVMH Moet Hennessy Louis Vuitton SE 2,277 6,515 22,252 Vonovia SE 1,048 1,556 38,019 Natixis SA 298 219 4,758 Wirecard AG 699 745 81,603 Orange SA 2,010 1,559 6,046 Zalando SE 323 398 6,972 Pernod Ricard SA 915 1,619 54,610 64,684 23,974 Peugeot SA 523 744 8,846 Publicis Groupe SA 633 520 Greece – 0.0% 7,856 Renault SA 876 483 1,100 Vodafone-Panafon Hellenic 15,828 Safran SA 1,568 3,174 Telecommunications Company SA 11 0 43,656 Sanofi 4,512 5,699 22,497 Schneider Electric SE 1,781 2,998 32,214 Societe Generale SA 2,559 1,455 3,626 Sodexo SA 354 558 4,349 Thales SA 371 586
December 31, 2019 9 Annual Financial Statements TD International Index Fund
No. of Shares No. of Shares or Units/ or Units/ Par Value Description Cost Fair Value Par Value Description Cost Fair Value
Hong Kong – 3.3% 6,184 Kingspan Group PLC $ 359 $ 491 495,300 AIA Group Limited $ 2,986 $ 6,752 9,543 Smurfit Kappa Group PLC 506 476 160,000 Alibaba Health Information 5,607 6,898 Technology Limited 220 240 12,200 ASM Pacific Technology Limited 148 220 Israel – 0.6% 25,000 Cathay Pacific Airways Limited 43 48 396 Airport City Limited 10 10 84,600 China Gas Holdings Limited 477 412 5,328 Alony Hetz Properties & 43,800 Chow Tai Fook Jewellery Group Limited 53 54 Investments Limited 100 109 104,293 CK Asset Holdings Limited 849 978 1,093 Amot Investments Limited 10 10 110,593 CK Hutchison Holdings Limited 2,453 1,369 1,708 Azrieli Group Limited 99 162 27,000 CK Infrastructure Holdings Limited 209 249 46,613 Bank Hapoalim BM 283 502 68,300 CLP Holdings Limited 704 932 61,181 Bank Leumi Le-Israel BM 325 578 13,600 Dairy Farm International Holdings Limited 152 101 83,586 Bezeq The Israeli Telecommunication 82,200 Galaxy Entertainment Group Limited 450 786 Corporation Limited 81 87 50,000 Haier Electronics Group Company Limited 197 203 5,100 Check Point Software Technologies Limited 583 735 84,000 Hang Lung Properties Limited 255 239 1,600 CyberArk Software Limited 290 242 31,300 Hang Seng Bank Limited 641 840 192 Delek Group Limited 37 38 59,462 Henderson Land Development 947 Elbit Systems Limited 137 191 Company Limited 248 379 50 Fattal Holdings 1998 Limited 10 11 106,400 HK Electric Investments and 277 First International Bank Of Israel Limited 10 10 HK Electric Investments Limited 119 136 737 Gazit-Globe Limited 10 11 152,800 HKT Trust and HKT Limited 222 280 946 Harel Insurance Investments 48,942 Hong Kong Exchanges & Financial Services Limited 10 10 and Clearing Limited 1,154 2,063 28,328 Israel Chemicals Limited 232 173 48,000 Hongkong Land Holdings Limited 424 358 46,826 Israel Discount Bank Limited 243 282 10,327 Jardine Matheson Holdings Limited 814 746 128 Melisron Limited 10 11 7,000 Jardine Strategic Holdings Limited 348 279 5,941 Mizrahi Tefahot Bank Limited 90 206 26,225 Kerry Properties Limited 132 108 2,498 Nice Limited 174 503 86,751 Link Real Estate Investment Trust 481 1,193 1,474 Shapir Engineering and Industry Limited 10 12 18,700 Melco Resorts & Entertainment 253 Strauss Group Limited 10 10 Limited, ADR 505 587 44,619 Teva Pharmaceutical Industries Limited 498 574 62,747 MTR Corporation Limited 301 482 149 The Israel Corporation Limited 40 40 243,510 New World Development Company Limited 396 433 4,378 Tower Semiconductor Limited 129 136 62,229 NWS Holdings Limited 124 113 2,000 Wix.com Limited 260 318 56,500 Power Assets Holdings Limited 469 537 3,691 4,971 40,500 Shimao Property Holdings Limited 195 204 259,000 Sino Biopharmaceutical Limited 517 470 Italy – 2.2% 124,383 Sino Land Company Limited 247 235 63,304 A2A SpA 167 154 80,000 SJM Holdings Limited 139 118 44,940 Assicurazioni Generali SpA 1,363 1,205 70,500 Sun Art Retail Group Limited 106 111 19,912 Atlantia SpA 604 604 59,482 Sun Hung Kai Properties Limited 975 1,183 11,078 Banca Mediolanum SpA 126 143 20,200 Swire Pacific Limited, Class ‘A’ 259 244 2,751 Buzzi Unicem SpA 88 90 7,500 Swire Pacific Limited, Class ‘B’ 15 14 493 Buzzi Unicem SpA, Saving Share 10 10 47,100 Swire Properties Limited 173 203 23,365 Davide Campari-Milano SpA 237 277 56,400 Techtronic Industries Company Limited 257 597 995 DiaSorin SpA 152 167 57,614 The Bank of East Asia Limited 280 167 318,786 Enel SpA 2,325 3,289 414,463 The Hong Kong and China 104,054 Eni SpA 2,861 2,099 Gas Company Limited 587 1,051 4,997 Ferrari NV 398 1,077 49,514 The Wharf (Holdings) Limited 300 164 24,907 FinecoBank Banca Fineco SpA 355 388 353,600 WH Group Limited 360 474 30,799 Hera SpA 172 175 48,514 Wharf Real Estate Investment 9,840 Infrastrutture Wireless Italiane SpA 131 125 Company Limited 373 384 608,764 Intesa Sanpaolo SpA 2,588 2,082 33,500 Wheelock & Company Limited 173 290 16,280 Leonardo SpA 316 248 20,530 27,026 12,703 Mediaset SpA 51 49 32,079 Mediobanca Banca di Ireland – 0.8% Credito Finanziario SpA 494 459 5,400 AerCap Holdings NV 307 431 7,401 Moncler SpA 435 433 32,758 AIB Group PLC 263 148 10,266 Nexi SpA 141 185 14,500 Amarin Corporation PLC, ADR 334 404 16,092 Pirelli & C SpA 177 121 39,060 Bank of Ireland Group PLC 395 278 21,018 Poste Italiane SpA 211 310 32,873 CRH PLC 1,204 1,708 21,100 PRADA SpA 91 113 4,044 DCC PLC 478 455 10,360 Prysmian SpA 293 325 3,156 Flutter Entertainment PLC 613 498 4,207 Recordati SpA 226 230 2,200 ICON PLC 434 492 22,997 Saipem SpA 149 146 18,272 James Hardie Industries PLC 236 464 85,182 Snam SpA 506 582 6,507 Kerry Group PLC 478 1,053
December 31, 2019 10 Annual Financial Statements TD International Index Fund
No. of Shares No. of Shares or Units/ or Units/ Par Value Description Cost Fair Value Par Value Description Cost Fair Value
406,298 Telecom Italia SpA $ 781 $ 329 2,212 Fast Retailing Company Limited $ 757 $ 1,706 242,488 Telecom Italia SpA, Az di Risp Non Conv. 436 193 5,100 Fuji Electric Company Limited 158 201 57,817 Terna SpA 301 502 6,800 Fuji Media Holdings Inc. 120 125 88,875 UniCredit SpA 3,594 1,687 14,800 FUJIFILM Holdings Corporation 647 918 2,682 UnipolSai Assicurazioni SpA 10 10 8,000 Fujitsu Limited 693 977 19,789 17,807 6,900 Fukuoka Financial Group Inc. 225 171 151 GLP J-Reit 251 243 Japan – 24.2% 1,700 GMO Payment Gateway Inc. 164 151 1,300 ABC-MART Inc. 75 115 9,800 Hakuhodo DY Holdings Inc. 118 205 16,100 ACOM Company Limited 66 95 5,700 Hamamatsu Photonics K.K. 154 303 8,100 Advantest Corporation 270 593 9,320 Hankyu Hanshin Holdings Inc. 318 518 28,600 Aeon Company Limited 579 766 1,400 Harmonic Drive Systems Inc. 85 87 4,500 AEON Financial Service Company Limited 117 92 11,500 Haseko Corporation 198 200 4,050 AEON Mall Company Limited 106 93 900 Hikari Tsushin Inc. 120 294 7,639 AGC Inc. 390 355 11,500 Hino Motors Limited 119 158 6,000 Air Water Inc. 101 114 1,295 Hirose Electric Company Limited 166 215 6,600 Aisin Seiki Company Limited 274 317 2,100 Hisamitsu Pharmaceutical Company Inc. 114 133 22,200 Ajinomoto Company Inc. 416 480 4,300 Hitachi Chemical Company Limited 124 234 7,900 Alfresa Holdings Corporation 165 208 4,300 Hitachi Construction Machinery 12,470 All Nippon Airways Company Limited 521 541 Company Limited 126 166 8,400 Alps Alpine Company Limited 307 248 2,900 Hitachi High-Technologies Corporation 114 267 13,600 Amada Holdings Company Limited 159 201 39,220 Hitachi Limited 1,364 2,149 4,720 Aozora Bank Limited 163 162 8,600 Hitachi Metals Limited 131 164 17,000 Asahi Group Holdings Limited 604 1,007 66,800 Honda Motor Company Limited 2,542 2,455 8,000 Asahi Intecc Company Limited 250 304 2,200 Hoshizaki Corporation 233 255 54,000 Asahi Kasei Corporation 528 787 15,600 Hoya Corporation 703 1,934 7,200 ASICS Corporation 145 155 11,400 Hulic Company Limited 115 178 77,330 Astellas Pharma Inc. 1,049 1,714 8,992 Idemitsu Kosan Company Limited 283 323 7,950 BANDAI NAMCO Holdings Inc. 228 628 5,899 IHI Corporation 227 179 2,900 Benesse Holdings Inc. 133 99 6,000 Iida Group Holdings Company Limited 126 137 23,400 Bridgestone Corporation 832 1,129 41,900 INPEX Corporation 608 564 9,500 Brother Industries Limited 176 255 13,520 Isetan Mitsukoshi Holdings Limited 228 158 3,300 Calbee Inc. 111 140 22,100 Isuzu Motors Limited 284 339 41,000 Canon Inc. 1,926 1,457 2,200 Ito En Limited 141 143 7,900 Casio Computer Company Limited 167 205 55,400 ITOCHU Corporation 739 1,667 6,900 Central Japan Railway Company 1,234 1,802 3,800 Itochu Techno-Solutions Corporation 127 139 27,200 Chubu Electric Power Company Inc. 653 499 1,600 Izumi Company Limited 82 75 8,600 Chugai Pharmaceutical Company Limited 322 1,028 9,199 J. Front Retailing Company Limited 149 167 5,000 Coca-Cola Bottlers Japan Holdings Inc. 222 166 13,500 Japan Airlines Company Limited 511 546 43,300 Concordia Financial Group Limited 309 231 21,000 Japan Exchange Group Inc. 283 480 400 Cosmos Pharmaceutical Corporation 110 108 63,300 Japan Post Holdings Company Limited 1,015 773 6,400 Credit Saison Company Limited 197 144 8,100 Japan Post Insurance Company Limited 173 179 4,100 CyberAgent Inc. 275 185 105 Japan Retail Fund Investment Corporation 241 293 10,100 Dai Nippon Printing Company Limited 295 355 45,100 Japan Tobacco Inc. 1,526 1,306 10,500 Daicel Corporation 113 130 20,400 JFE Holdings Inc. 685 340 4,500 Daifuku Company Limited 314 353 8,900 JGC Holdings Corporation 204 184 44,050 Dai-ichi Life Holdings Inc. 807 943 7,700 JSR Corporation 180 183 25,258 Daiichi Sankyo Company Limited 919 2,166 9,200 JTEKT Corporation 177 141 10,500 Daikin Industries Limited 857 1,924 131,050 JXTG Holdings Inc. 849 772 2,700 Daito Trust Construction Company Limited 314 433 18,600 Kajima Corporation 252 321 24,600 Daiwa House Industry Company Limited 659 989 5,500 Kakaku.com Inc. 114 182 79 Daiwa House REIT Investment Corporation 275 268 28,900 Kansai Electric Power Company Inc. 604 435 63,300 Daiwa Securities Group Inc. 573 415 8,500 Kansai Paint Company Limited 136 270 4,200 DeNA Company Limited 93 88 19,800 Kao Corporation 974 2,121 17,800 DENSO Corporation 848 1,044 5,699 Kawasaki Heavy Industries Limited 218 162 8,700 Dentsu Group Inc. 391 389 66,600 KDDI Corporation 1,530 2,580 3,300 DIC Corporation 130 118 3,859 Keihan Holdings Company Limited 136 243 1,100 Disco Corporation 255 335 9,199 Keikyu Corporation 182 230 13,700 East Japan Railway Company 1,305 1,606 4,199 Keio Corporation 191 330 3,800 Ebara Corporation 152 149 5,200 Keisei Electric Railway Company Limited 119 262 11,000 Eisai Company Limited 713 1,069 4,200 Kewpie Corporation 128 123 5,860 Electric Power Development 7,312 Keyence Corporation 1,132 3,334 Company Limited 237 185 5,900 Kikkoman Corporation 154 375 1,800 Ezaki Glico Company Limited 110 104 6,939 Kintetsu Group Holdings Company Limited 309 489 10,200 FamilyMart Company Limited 174 317 33,600 Kirin Holdings Company Limited 649 952 7,900 FANUC Corporation 1,366 1,894
December 31, 2019 11 Annual Financial Statements TD International Index Fund
No. of Shares No. of Shares or Units/ or Units/ Par Value Description Cost Fair Value Par Value Description Cost Fair Value
2,000 Kobayashi Pharmaceutical 81 Nippon Prologis REIT Inc. $ 194 $ 268 Company Limited $ 226 $ 220 2,400 Nippon Shinyaku Company Limited 276 270 4,800 Koito Manufacturing Company Limited 197 289 32,830 Nippon Steel Trading Corporation 1,274 643 38,300 Komatsu Limited 957 1,194 92,800 Nippon Telegraph & Telephone Corporation 2,321 3,046 3,800 Konami Holdings Corporation 150 203 5,800 Nippon Television Holdings Inc. 100 101 18,100 Konica Minolta Inc. 246 153 6,099 Nippon Yusen KK 276 143 1,300 KOSE Corporation 200 246 5,100 Nissan Chemical Industries Limited 242 277 47,300 Kubota Corporation 711 965 95,500 Nissan Motor Company Limited 1,092 719 12,800 Kuraray Company Limited 196 201 8,339 Nisshin Seifun Group Inc. 126 189 13,100 Kyocera Corporation 767 1,159 2,600 Nissin Foods Holdings Company Limited 147 251 10,100 Kyowa Kirin Company Limited 163 309 3,300 Nitori Holdings Company Limited 303 676 15,200 Kyushu Electric Power Company Inc. 307 171 6,400 Nitto Denko Corporation 462 467 6,500 Kyushu Railway Company 292 283 3,600 NOK Corporation 76 70 2,000 Lawson Inc. 136 147 133,900 Nomura Holdings Inc. 1,291 895 1,900 LINE Corporation 96 121 5,000 Nomura Real Estate Holdings Inc. 129 156 9,000 Lion Corporation 202 227 168 Nomura Real Estate Master Fund Inc. 302 373 10,800 LIXIL Group Corporation 275 242 14,270 Nomura Research Institute Limited 181 396 18,100 M3 Inc. 238 709 18,300 NSK Limited 203 225 1,900 Mabuchi Motor Company Limited 105 93 26,000 NTT Data Corporation 310 452 9,800 Makita Corporation 294 440 46,278 NTT DOCOMO Inc. 1,076 1,674 65,000 Marubeni Corporation 463 624 26,900 Obayashi Corporation 239 388 7,600 Marui Group Company Limited 122 241 2,700 OBIC Company Limited 209 472 3,400 Matsumotokiyoshi Holdings 12,399 Odakyu Electric Railway Company Limited 260 376 Company Limited 165 171 36,000 Oji Holdings Corporation 224 253 23,700 Mazda Motor Corporation 422 262 51,100 Olympus Corporation 547 1,023 2,700 McDonald’s Holdings Company 7,900 OMRON Corporation 326 598 (Japan) Limited 90 169 15,700 Ono Pharmaceutical Company Limited 315 465 38,759 Mebuki Financial Group Inc. 183 128 1,600 Oracle Corporation Japan 106 189 7,700 Medipal Holdings Corporation 172 221 8,100 Oriental Land Company Limited 452 1,435 4,636 MEIJI Holdings Company Limited 252 407 54,200 ORIX Corporation 1,104 1,166 3,000 Mercari Inc. 113 80 114 Orix JREIT Inc. 336 321 15,900 Minebea Mitsumi Inc. 269 427 14,999 Osaka Gas Company Limited 345 372 11,500 MISUMI Group Inc. 300 370 4,200 OTSUKA Corporation 105 218 53,450 Mitsubishi Chemical Holdings Corporation 416 517 16,000 Otsuka Holdings Company Limited 620 926 55,200 Mitsubishi Corporation 1,356 1,899 17,600 Pan Pacific International 79,100 Mitsubishi Electric Corporation 1,044 1,399 Holdings Corporation 157 379 48,300 Mitsubishi Estate Company Limited 1,225 1,200 90,607 Panasonic Corporation 1,528 1,104 7,600 Mitsubishi Gas Chemical Company Inc. 139 150 4,600 Park24 Company Limited 125 146 13,099 Mitsubishi Heavy Industries Limited 712 660 3,800 PeptiDream Inc. 258 252 4,700 Mitsubishi Materials Corporation 192 166 7,200 Persol Holdings Company Limited 216 175 27,000 Mitsubishi Motors Corporation 342 146 4,700 Pigeon Corporation 257 223 9,100 Mitsubishi Tanabe Pharma Corporation 171 217 3,700 Pola Orbis Holdings Inc. 119 114 467,480 Mitsubishi UFJ Financial Group Inc. 3,990 3,282 34,500 Rakuten Inc. 403 383 17,400 Mitsubishi UFJ Lease & 49,100 Recruit Holdings Company Limited 1,135 2,388 Finance Company Limited 100 145 31,500 Renesas Electronics Corporation 384 279 67,400 Mitsui & Company Limited 1,167 1,556 87,700 Resona Holdings Inc. 728 496 7,400 Mitsui Chemicals Inc. 218 234 27,700 Ricoh Company Limited 427 391 36,400 Mitsui Fudosan Company Limited 1,050 1,155 1,400 Rinnai Corporation 112 142 4,600 Mitsui O.S.K. Lines Limited 314 164 3,900 Rohm Company Limited 389 404 976,863 Mizuho Financial Group Inc. 2,979 1,954 10,000 Ryohin Keikaku Company Limited 322 303 5,100 MonotaRO Company Limited 182 176 14,800 Santen Pharmaceutical Company Limited 176 366 19,164 MS&AD Insurance Group Holdings Inc. 674 821 9,500 SBI Holdings Inc. 246 260 25,300 Murata Manufacturing Company Limited 1,046 2,022 1,700 SCREEN Holdings Company Limited 157 151 4,600 Nabtesco Corporation 121 176 2,000 SCSK Corporation 134 135 7,619 Nagoya Railroad Company Limited 191 307 8,500 SECOM Company Limited 652 985 10,090 NEC Corporation 453 542 6,884 Sega Sammy Holdings Inc. 173 129 19,800 NEXON Company Limited 255 341 8,300 SEIBU Holdings Inc. 199 177 10,900 NGK Insulators Limited 211 246 11,200 Seiko Epson Corporation 225 220 7,900 NGK Spark Plug Company Limited 178 199 15,300 Sekisui Chemical Company Limited 192 345 3,499 NH Foods Limited 143 188 25,400 Sekisui House Limited 447 704 5,000 Nichirei Corporation 158 152 30,900 Seven & i Holdings Company Limited 1,366 1,471 10,300 NIDEC Corporation 969 1,827 23,900 Seven Bank Limited 100 102 5,800 Nihon M&A Center Inc. 239 259 5,800 SG Holdings Company Limited 185 170 13,500 Nikon Corporation 309 214 8,549 Sharp Corporation 192 170 4,792 Nintendo Company Limited 1,419 2,489 11,100 Shimadzu Corporation 217 451 3,299 Nippon Express Company Limited 209 251 900 Shimamura Company Limited 115 89 7,200 Nippon Paint Holdings Company Limited 263 481
December 31, 2019 12 Annual Financial Statements TD International Index Fund
No. of Shares No. of Shares or Units/ or Units/ Par Value Description Cost Fair Value Par Value Description Cost Fair Value
3,140 Shimano Inc. $ 335 $ 662 58,000 Toray Industries Inc. $ 503 $ 510 24,600 Shimizu Corporation 201 325 18,200 Toshiba Corporation 814 802 16,100 Shin-Etsu Chemical Company Limited 1,369 2,299 11,150 Tosoh Corporation 253 223 8,000 Shinsei Bank Limited 214 159 5,899 TOTO Limited 192 323 12,400 Shionogi & Company Limited 528 996 5,800 Toyo Seikan Group Holdings Limited 116 130 15,800 Shiseido Company Limited 600 1,457 3,600 Toyo Suisan Kaisha Limited 127 199 5,700 Showa Denko KK 343 195 2,600 Toyoda Gosei Company Limited 70 84 2,600 SMC Corporation 761 1,544 2,200 Toyota Boshoku Corporation 45 46 65,200 Softbank Corporation 1,150 1,135 6,100 Toyota Industries Corporation 340 456 61,500 SoftBank Group Corporation 1,864 3,467 93,500 Toyota Motor Corporation 6,228 8,555 2,900 Sohgo Security Services Company Limited 185 204 8,800 Toyota Tsusho Corporation 276 401 45,500 Sojitz Corporation 193 190 5,200 Trend Micro Inc. 244 346 13,600 Sompo Holdings Inc. 561 694 1,500 Tsuruha Holdings Inc. 214 250 50,400 Sony Corporation 2,191 4,444 14,900 Unicharm Corporation 313 653 6,100 Sony Financial Holdings Inc. 120 190 121 United Urban Investment Corporation 211 295 3,500 Square Enix Holdings Company Limited 207 226 8,800 USS Company Limited 129 216 5,600 Stanley Electric Company Limited 153 210 1,900 Welcia Holdings Company Limited 128 157 25,100 Subaru Corporation 613 807 6,700 West Japan Railway Company 426 753 10,400 Sumco Corporation 314 224 700 Workman Company Limited 67 85 61,700 Sumitomo Chemical Company Limited 412 364 4,900 Yakult Honsha Company Limited 312 351 48,500 Sumitomo Corporation 779 935 25,300 Yamada Denki Company Limited 191 174 6,400 Sumitomo Dainippon Pharma 6,000 Yamaha Corporation 193 432 Company Limited 92 161 11,300 Yamaha Motor Company Limited 291 294 31,100 Sumitomo Electric Industries Limited 534 607 13,000 Yamato Holdings Company Limited 281 288 4,500 Sumitomo Heavy Industries Limited 193 166 4,940 Yamazaki Baking Company Limited 90 115 9,449 Sumitomo Metal Mining Company Limited 322 395 10,300 YASKAWA Electric Corporation 213 504 54,000 Sumitomo Mitsui Financial Group Inc. 3,129 2,590 9,200 Yokogawa Electric Corporation 153 210 13,274 Sumitomo Mitsui Trust Holdings Inc. 788 681 106,400 Z Holdings Corporation 521 583 13,700 Sumitomo Realty & Development 7,900 Zozo Inc. 204 196 Company Limited 476 621 152,962 196,793 6,900 Sumitomo Rubber Industries Limited 118 109 2,900 Sundrug Company Limited 158 136 Jordan – 0.0% 5,700 Suntory Beverage & Food Limited 255 309 5,670 Hikma Pharmaceuticals PLC 196 194 3,070 Suzuken Company Limited 130 163 16,500 Suzuki Motor Corporation 692 894 Luxembourg – 0.2% 5,800 Sysmex Corporation 313 513 26,808 ArcelorMittal SA 1,354 611 23,100 T&D Holdings Inc. 496 379 4,127 Millicom International Cellular SA 338 256 4,849 Taiheiyo Cement Corporation 153 185 1,557 RTL Group SA 183 100 8,200 Taisei Corporation 263 441 18,996 Tenaris SA 319 278 1,500 Taisho Pharmaceutical Holdings 2,194 1,245 Company Limited 144 144 6,500 Taiyo Nippon Sanso Corporation 95 187 Macau – 0.1% 6,100 Takashimaya Company Limited 97 89 38,400 MGM China Holdings Limited 86 82 63,300 Takeda Pharmaceutical Company Limited 3,432 3,251 99,600 Sands China Limited 407 691 5,300 TDK Corporation 432 773 62,900 Wynn Macau Limited 157 201 7,200 Teijin Limited 173 175 28,700 Terumo Corporation 614 1,322 650 974 24,100 The Chiba Bank Limited 198 180 11,100 The Chugoku Electric Power Company Inc. 211 189 Malaysia – 0.0% 19,400 The Shizuoka Bank Limited 228 187 1,000 Promet Berhad 0 0 4,800 The Yokohama Rubber Company Limited 112 121 5,000 THK Company Limited 152 174 Mexico – 0.0% 3,200 TIS Inc. 242 246 8,076 Fresnillo PLC 132 89 7,699 Tobu Railway Company Limited 229 362 4,600 Toho Company Limited 134 249 Netherlands – 4.5% 3,099 Toho Gas Company Limited 100 164 17,779 ABN AMRO Bank NV 552 420 17,100 Tohoku Electric Power Company Inc. 355 220 502 Adyen NV 497 534 26,300 Tokio Marine Holdings Inc. 1,132 1,912 7,483 Akzo Nobel NV 685 988 4,000 Tokyo Broadcasting System Holdings Inc. 86 88 27,477 Altice Europe NV, Class ‘A’ 202 230 1,800 Tokyo Century Corporation 138 124 16,921 ASML Holding NV 2,019 6,499 63,200 Tokyo Electric Power Company 4,573 EXOR NV 236 460 Holdings Inc. 1,096 351 4,624 Heineken Holding NV 382 582 6,200 Tokyo Electron Limited 627 1,758 7,722 Heineken NV 677 1,068 15,800 Tokyo Gas Company Limited 454 499 159,371 ING Groep NV 3,406 2,481 24,400 Tokyu Corporation 420 586 40,828 Koninklijke Ahold Delhaize NV 957 1,326 24,700 Tokyu Fudosan Holdings Corporation 213 222 7,359 Koninklijke DSM NV 549 1,244 11,450 Toppan Printing Company Limited 244 307
December 31, 2019 13 Annual Financial Statements TD International Index Fund
No. of Shares No. of Shares or Units/ or Units/ Par Value Description Cost Fair Value Par Value Description Cost Fair Value
146,126 Koninklijke KPN NV $ 770 $ 560 Russia – 0.0% 37,712 Koninklijke Philips NV 1,496 2,391 20,323 Evraz PLC $ 205 $ 141 12,541 NN Group NV 522 618 11,451 NXP Semiconductors NV 1,481 1,892 Singapore – 1.3% 16,900 Prosus NV 1,737 1,638 103,500 Ascendas Real Estate Investment Trust 213 297 4,794 Randstad NV 288 380 105,500 CapitaLand Commercial Trust 157 203 169,229 Royal Dutch Shell PLC, Class ‘A’ 6,326 6,506 106,200 CapitaLand Limited 350 385 153,199 Royal Dutch Shell PLC, Class ‘B’ 5,605 5,901 103,800 CapitaLand Mall Trust 185 247 11,463 Wolters Kluwer NV 441 1,086 24,000 City Developments Limited 220 254 28,828 36,804 87,100 ComfortDelGro Corporation Limited 160 200 73,459 DBS Group Holdings Limited 1,132 1,836 New Zealand – 0.4% 243,200 Genting Singapore Limited 220 216 20,923 Air New Zealand Limited 50 54 3,971 Jardine Cycle & Carriage Limited 117 115 40,113 Auckland International Airport Limited 151 307 60,200 Keppel Corporation Limited 376 393 29,364 Contact Energy Limited 181 183 83,400 Mapletree Commercial Trust 193 192 23,836 Fisher & Paykel Healthcare 4,100 Mapletree Industrial Trust 10 10 Corporation Limited 279 462 101,900 Mapletree Logistics Trust 167 171 34,329 Fletcher Building Limited 239 153 150,690 Oversea-Chinese Banking 3,671 Genesis Energy Limited 10 10 Corporation Limited 1,255 1,598 25,940 Infratil Limited 108 114 27,200 SATS Limited 125 133 3,304 Mainfreight Limited 111 123 39,566 Sembcorp Industries Limited 125 87 24,931 Mercury NZ Limited 100 110 21,700 Singapore Airlines Limited 228 189 51,553 Meridian Energy Limited 112 225 32,300 Singapore Exchange Limited 187 276 16,092 Ryman Healthcare Limited 120 230 64,375 Singapore Press Holdings Limited 203 136 3,032 SKYCITY Entertainment Group Limited 10 10 62,900 Singapore Technologies 73,867 Spark New Zealand Limited 232 280 Engineering Limited 178 239 30,329 The a2 Milk Company Limited 304 398 334,800 Singapore Telecommunications Limited 981 1,089 3,903 Xero Limited 239 284 80,900 Suntec Real Estate Investment Trust 132 144 58,360 United Overseas Bank Limited 1,080 1,488 2,246 2,943 18,687 UOL Group Limited 94 150 11,100 Venture Corporation Limited 223 174 Norway – 0.8% 79,900 Wilmar International Limited 293 318 11,332 Adevinta ASA 163 174 901 Aker ASA 64 72 8,604 10,540 4,347 Aker BP ASA 205 185 3,430 Austevoll Seafood ASA 46 46 South Africa – 0.0% 42,521 DNB ASA 758 1,033 27,440 Investec PLC 273 209 5,803 Entra ASA 114 125 43,812 Equinor ASA 1,218 1,135 Spain – 2.8% 8,046 Gjensidige Forsikring ASA 137 219 10,602 ACS Actividades de 3,420 Kongsberg Gruppen ASA 69 70 Construccion y Servicios SA 519 551 11,342 Leroy Seafood Group ASA 99 98 2,754 Aena SME SA 417 684 17,950 Mowi ASA 422 606 17,949 Amadeus IT Group SA 850 1,903 54,101 Norsk Hydro ASA 589 261 272,734 Banco Bilbao Vizcaya Argentaria SA 3,623 1,980 31,568 Orkla ASA, Class ‘A’ 359 416 685,487 Banco Santander SA 6,568 3,724 2,104 Salmar ASA 131 140 49,642 Bankia SA 343 138 2,657 Schibsted ASA 97 105 27,119 Bankinter SA 278 258 3,943 Schibsted ASA, Class ‘B’ 167 146 147,715 CaixaBank SA 749 602 7,096 SpareBank 1 SR-Bank ASA 103 105 11,775 Cellnex Telecom SA 570 658 18,895 Storebrand ASA 178 193 13,071 Endesa SA 348 453 26,308 Telenor ASA 568 612 19,883 Ferrovial SA 479 781 4,722 TGS NOPEC Geophysical Company ASA 176 187 12,464 Grifols SA 286 571 4,458 Tomra Systems ASA 162 184 10,727 Grifols SA, Class ‘B’ 308 325 7,144 Yara International ASA 291 387 245,615 Iberdrola SA 2,402 3,284 44,618 Industria de Diseno Textil SA 1,196 2,044 6,116 6,499 43,359 MAPFRE SA 187 149 22,141 Naturgy Energy Group SA 687 722 Portugal – 0.2% 17,801 Red Electrica Corporation 364 465 317,265 Banco Comercial Portugues SA 96 94 59,436 Repsol SA 1,528 1,206 60,788 Banco Espirito Santo SA 179 0 59,436 Repsol SA, Rights 10/01/2020 37 37 103,120 EDP-Energias de Portugal SA 500 580 9,590 Siemens Gamesa Renewable Energy SA 278 218 20,164 Galp Energia SGPS SA 357 438 199,443 Telefonica SA 3,587 1,809 10,578 Jeronimo Martins SGPS SA 172 226 1,279 NOS SGPS SA 10 9 25,604 22,562 1,314 1,347
December 31, 2019 14 Annual Financial Statements TD International Index Fund
No. of Shares No. of Shares or Units/ or Units/ Par Value Description Cost Fair Value Par Value Description Cost Fair Value
Sweden – 2.9% 29,820 Roche Holding AG $ 7,869 $ 12,554 6,872 AAK AB $ 167 $ 170 1,670 Schindler Holding AG, 13,078 Alfa Laval AB 249 428 Participation Certificate 236 552 37,674 ASSA ABLOY AB, Class ‘B’ 610 1,144 809 Schindler Holding AG, 27,887 Atlas Copco AB, Class ‘A’ 790 1,444 Registered Shares 118 257 15,963 Atlas Copco AB, Class ‘B’ 410 720 218 SGS SA 450 776 4,296 Axfood AB 123 124 5,274 Sika AG 385 1,287 11,367 Boliden AB 237 392 26,310 STMicroelectronics NV 814 919 8,033 Castellum AB 217 245 12,392 Swiss Re AG 1,175 1,807 10,250 Electrolux AB, Class ‘B’ 304 327 1,058 Swisscom AG 575 728 13,345 Elekta AB 256 228 1,207 The Swatch Group AG 457 437 33,550 Epiroc AB, Class ‘A’ 442 532 2,108 The Swatch Group AG, Class ‘B’ 169 145 15,688 Epiroc AB, Class ‘B’ 190 241 148,896 UBS Group AG 4,276 2,442 24,807 Essity AB, Class ‘B’ 906 1,038 6,191 Zurich Insurance Group AG 1,960 3,299 10,205 Fabege AB 198 220 49,459 70,839 3,780 Fastighets AB Balder 190 227 8,029 Getinge AB, Class ‘B’ 181 194 United Arab Emirates – 0.0% 32,496 Hennes & Mauritz AB, Class ‘B’ 1,057 858 4,855 NMC Health PLC 273 148 11,153 Hexagon AB 430 812 16,799 Husqvarna AB, Class ‘B’ 179 175 United Kingdom – 14.9% 3,642 ICA Gruppen AB 165 221 39,686 3i Group PLC 474 750 6,146 Industrivarden AB, Class ‘A’ 187 198 8,156 Admiral Group PLC 215 324 6,719 Industrivarden AB, Class ‘C’ 141 210 51,846 Anglo American PLC 1,952 1,938 4,784 Investment AB Latour 88 101 19,277 Ashtead Group PLC 412 800 5,415 Investor AB 371 380 14,331 Associated British Foods PLC 481 640 18,642 Investor AB, Class ‘B’ 688 1,321 53,655 AstraZeneca PLC 3,965 7,021 10,015 Kinnevik AB 298 318 37,590 Auto Trader Group PLC 285 384 3,057 L E Lundbergforetagen AB, Class ‘B’ 123 174 2,521 AVEVA Group PLC 178 202 7,300 Lundin Petroleum AB 193 322 160,201 Aviva PLC 1,693 1,154 17,297 NIBE Industrier AB, Class ‘B’ 319 389 130,996 BAE Systems PLC 1,130 1,273 3,070 Saab AB, Class ‘B’ 130 134 708,702 Barclays PLC 3,940 2,190 45,832 Sandvik AB 732 1,161 41,768 Barratt Developments PLC 450 536 12,597 Securitas AB, Class ‘B’ 225 282 5,078 Berkeley Group Holdings PLC 306 424 66,290 Skandinaviska Enskilda Banken AB, 832,193 BP PLC 8,045 6,751 Class ‘A’ 848 810 93,822 British American Tobacco PLC 5,468 5,215 14,448 Skanska AB, Class ‘B’ 320 424 342,338 BT Group PLC 2,002 1,133 16,999 SKF AB, Class ‘B’ 369 446 13,813 Bunzl PLC 347 491 31,706 SSAB AB 115 137 16,837 Burberry Group PLC 354 639 24,853 Svenska Cellulosa Aktiebolaget SCA, 237,385 Centrica PLC 1,137 365 Class ‘B’ 342 327 41,661 CNH Industrial NV 509 594 63,070 Svenska Handelsbanken AB, Class ‘A’ 859 882 7,758 Coca-Cola European Partners PLC 432 513 40,348 Swedbank AB 964 780 64,882 Compass Group PLC 1,047 2,109 7,079 Swedish Match AB 225 474 63,186 ConvaTec Group PLC 213 216 5,784 Swedish Orphan Biovitrum AB 125 124 5,282 Croda International PLC 272 465 20,617 Tele2 AB, Class ‘B’ 317 388 97,721 Diageo PLC 2,898 5,380 125,669 Telefonaktiebolaget LM Ericsson, Class ‘B’ 1,925 1,421 55,313 Direct Line Insurance Group PLC 283 297 91,484 Telia Company AB 664 511 53,295 DS Smith PLC 345 352 9,944 Trelleborg AB 221 232 10,796 easyJet PLC 245 265 8,672 Volvo AB, Class ‘A’ 180 190 37,222 Experian PLC 692 1,634 60,802 Volvo AB, Class ‘B’ 977 1,323 9,437 Ferguson PLC 747 1,112 19,247 23,199 45,155 Fiat Chrysler Automobiles NV 779 868 62,418 G4S PLC 266 234 Switzerland – 8.7% 204,014 GlaxoSmithKline PLC 5,598 6,243 77,634 ABB Limited 1,725 2,434 15,564 Halma PLC 482 566 20,054 Alcon Inc. 1,482 1,475 11,449 Hargreaves Lansdown PLC 237 381 21,352 Compagnie Financiere Richemont SA 1,490 2,179 827,746 HSBC Holdings PLC 10,325 8,427 95,791 Credit Suisse Group AG 2,957 1,684 39,133 Imperial Brands PLC 1,786 1,258 1,507 Geberit AG 487 1,098 51,088 Informa PLC 739 753 375 Givaudan SA 653 1,525 7,038 InterContinental Hotels Group PLC 381 630 474,514 Glencore PLC 2,349 1,921 6,599 Intertek Group PLC 318 664 2,172 Kuehne + Nagel International AG 288 476 145,742 ITV PLC 315 379 20,713 LafargeHolcim Limited, Class ‘B’ 1,702 1,492 86,968 J Sainsbury PLC 486 344 3,046 Lonza Group AG 611 1,444 16,640 JD Sports Fashion PLC 210 240 122,030 Nestle SA 8,640 17,156 8,003 Johnson Matthey PLC 361 412 96,062 Novartis AG 8,244 11,845 84,886 Kingfisher PLC 479 317 762 Partners Group Holding AG 347 907 28,336 Land Securities Group PLC 652 483
December 31, 2019 15 Annual Financial Statements TD International Index Fund
No. of Shares No. of Shares or Units/ or Units/ Par Value Description Cost Fair Value Par Value Description Cost Fair Value
244,794 Legal and General Group PLC $ 886 $ 1,276 United States – 0.1% 5,800 Liberty Global PLC, Class ‘A’ 191 171 6,617 Carnival PLC $ 367 $ 415 17,100 Liberty Global PLC, Class ‘C’ 534 484 2,891,529 Lloyds Banking Group PLC 4,032 3,108 Exchange-Traded Funds – 2.7% 14,345 London Stock Exchange Group PLC 749 1,912 49,300 iShares MSCI EAFE ETF 4,358 4,446 105,004 M&G PLC 392 428 945,000 TD International Equity Index ETF* 17,589 17,419 78,959 Marks & Spencer Group PLC 684 290 21,947 21,865 199,142 Melrose Industries PLC 791 822 14,175 Micro Focus International PLC 621 259 Transaction Costs (506) 19,962 Mondi PLC 585 609 TOTAL INVESTMENT 139,552 National Grid PLC 2,151 2,267 PORTFOLIO – 99.7% $ 678,349 $ 809,770 5,446 NEXT PLC 363 657 19,235 Ocado Group PLC 399 423 FOREIGN EXCHANGE FORWARD 32,183 Pearson PLC 555 353 CONTRACTS (SCHEDULE 1) – 0.0% 0 13,097 Persimmon PLC 364 607 105,430 Prudential PLC 2,179 2,628 TOTAL PORTFOLIO $ 809,770 28,956 Reckitt Benckiser Group PLC 2,456 3,053 Note: Percentages shown relate investments at 79,794 RELX PLC 1,368 2,615 fair value to Net Assets as at the period end. 75,776 Rentokil Initial PLC 489 590 * TD Asset Management Inc. is also the manager 15,184 Rio Tinto Limited 931 1,389 of the underlying funds. 43,937 Rio Tinto PLC 2,397 3,403 79,230 Rolls-Royce Holdings PLC 990 931 3,226,302 Rolls-Royce Holdings PLC, C Shares 0 6 193,920 Royal Bank of Scotland Group PLC 3,553 802 42,468 RSA Insurance Group PLC 488 413 5,188 Schroders PLC 204 297 44,717 Segro PLC 467 690 9,842 Severn Trent PLC 318 426 35,779 Smith & Nephew PLC 568 1,128 15,929 Smiths Group PLC 425 462 3,040 Spirax-Sarco Engineering PLC 450 465 42,374 SSE PLC 1,126 1,048 21,956 St. James’s Place PLC 402 440 131,087 Standard Chartered PLC 2,179 1,606 98,316 Standard Life Aberdeen PLC 751 555 136,062 Taylor Wimpey PLC 458 453 17,200 TechnipFMC PLC 466 479 399,477 Tesco PLC 2,194 1,754 36,472 The British Land Company PLC 569 401 44,429 The Sage Group PLC 364 572 10,852 The Weir Group PLC 331 282 59,516 Unilever NV 2,666 4,441 45,396 Unilever PLC 2,024 3,397 28,210 United Utilities Group PLC 405 458 1,093,054 Vodafone Group PLC 5,212 2,759 5,505 Whitbread PLC 309 459 98,644 Wm Morrison Supermarkets PLC 464 339 51,376 WPP PLC 997 942 115,428 120,715
Schedule 1
Foreign Exchange Forward Contracts (in 000s except contract price and total number of contracts) as at December 31, 2019 Settlement Currency to be Currency to be Contract Unrealized Date Delivered Fair Value Received Fair Value Price Appreciation
January 02, 2020 150 GBP $ 258 199 USD $ 258 1.32506 $ 0 January 02, 2020 550 HKD 92 71 USD 92 7.78919 0 $ 350 $ 350 $ 0
TOTAL NUMBER OF CONTRACTS: 2 TOTAL UNREALIZED APPRECIATION (DEPRECIATION) $ 0
December 31, 2019 16 Annual Financial Statements nTD International Index Fund
Fund-Specific Notes to the Financial Statements Brokerage Commissions and Soft Dollars (in 000s) (Notes 3 and 6) for the periods ended December 31, 2019 and 2018 The Fund (I) The Fund was incepted on May 12, 1997 and its operations commenced 2019 2018 on May 13, 1997. Total Brokerage Commissions $ 148 $ 164 (II) TDAM is the manager, portfolio adviser and trustee of the Fund. TDIS Commissions Paid to Related Parties 19 17 is the principal distributor of the Investor and e-Series units of the Fund. Soft Dollars 0 0 (III) The presentation and functional currency of the Fund is the Canadian dollar. Tax Loss Carry Forwards (in 000s) (Note 7) (IV) The investment objective of the Fund is to seek to track the performance as at December 31, 2019 of an international equity markets index that measures the investment return Capital Losses $ 41,923 of mid- and large-capitalization issuers in the European, Asian and Far East regions. In seeking to achieve this objective, the Fund tracks the performance Non-Capital Losses (by year of expiry) None of the Solactive GBS Developed Markets ex North America Large & Mid Cap CAD Index (Net Total Return, C$) (“Solactive GBS Developed Markets ex Securities Lent (Note 3) NA Large & Mid Cap CAD Index (NTR, C$)”). The Fund may hold up to 100% (I) SECURITIES LENDING INCOME of its assets in units of exchange-traded funds, including TD International A reconciliation of the gross amount generated from the securities lending Equity Index ETF, to gain the desired exposure to the Solactive GBS Developed transactions to the securities lending income to the Fund for the periods Markets ex NA Large & Mid Cap CAD Index (NTR, C$). ended December 31, 2019 and 2018 is as follows:
Effective November 7, 2019, the Fund changed its investment objectives Percentage of from tracking the MSCI EAFE Index to tracking the performance of an Amount (in 000s) Total Amount (%) international equity markets index that measures the investment return of 2019 2018 2019 2018 mid- and large-capitalization issuers in the European, Asian and Far East Gross Securities regions. Correspondingly, the Fund changed its benchmark index from Lending Income $ 495 $ 466 100.0 100.0 Agent Fees – The Bank MSCI EAFE Index to Solactive GBS Developed Markets ex North America of New York Mellon (98) (93) (19.7) (19.9) Large & Mid Cap CAD Index (Net Total Return, C$). Securities Lending (V) As at December 31, 2019, the Fund’s related party investment holdings Income to the Fund as a percentage of its net assets was 2.1% (December 31, 2018: 0.0%). before Tax Reclaims (VI) As at December 31, 2019, TD and funds managed by TDAM held 12.9% (Withholding Taxes) 397 373 80.3 80.1 (December 31, 2018: 14.1%) of the net assets of the Fund. Tax Reclaims (Withholding Taxes) (6) (3) (1.3) (0.6) (VII) Institutional Series was terminated on June 13, 2018. Net Securities Management Fees and Administration Fees (%) (Note 6) Lending Income $ 391 $ 370 79.0 79.5 for the periods ended December 31, 2019 and 2018 (exclusive of GST and HST) (II) SECURITIES LENT AND COLLATERAL HELD (in 000s) Annual Rate The table below summarizes the aggregate securities lent and related Management Administration Series Fees• Fees collateral held by the Fund as at December 31, 2019 and 2018. Investor Series 0.55 N/A 2019 2018 e-Series 0.40 N/A Institutional Series 0.45 N/A Fair Value of Securities Lent $ 83,714 $ 69,850 F-Series 0.25 N/A Fair Value of Collateral Held 91,068 75,172 O-Series 0.00 N/A Collateral held is in the form of debt obligations of the Government of • Includes management fees paid by the Fund and the proportionate management fees, if any, of the Underlying Funds managed by TDAM held by the Fund. However, Canada and other countries, Canadian provincial and municipal governments no management fees are payable by the Fund that, to a reasonable person, would or corporations and is not included in the Statements of Financial Position. duplicate a fee payable by the Underlying Funds for the same services. Effective November 7, 2019, the management fee rate charged to Investor Series, e-Series and F-Series was changed from 0.90% to 0.55%, 0.45% to 0.40% and 0.50% to 0.25%, respectively.
December 31, 2019 17 Annual Financial Statements TD International Index Fund Fund-Specific Notes to the Financial Statements
Financial Risk Management (Notes 3, 4 and 8) (III) OTHER PRICE RISK as at December 31, 2019 and 2018 The table below summarizes the impact of other price risk to the Fund. As at (I) INTEREST RATE RISK December 31, 2019 and 2018, had the benchmark of the Fund increased or Not significant to the Fund. decreased by 5 percent, with all other variables held constant, the net assets of the Fund would have increased or decreased by approximately: (II) CURRENCY RISK The following tables indicate the currencies (other than the Fund’s functional Impact on Impact on Net Assets (in 000s) Net Assets (%) currency) to which the Fund had exposure to as at December 31, 2019 and Benchmark 2019 2018 2019 2018 2018, including the underlying principal amount of foreign exchange forward Solactive GBS Developed Markets contracts, as applicable. The tables also illustrate the potential impact to ex NA Large & Mid Cap the Fund’s net assets if the Fund’s functional currency had strengthened or CAD Index (NTR, C$) $ 39,274 N/A 4.8 N/A weakened by 5 percent in relation to all exposure to other currencies, with MSCI EAFE Index all other variables held constant. In practice, the actual trading results may (Net Dividend, C$) N/A $ 34,630 N/A 5.1 differ from these approximate sensitivity amounts and the differences could be material. In practice, the actual trading results may differ from the above estimated
Foreign amounts and the differences could be material. Exchange (IV) CREDIT RISK Financial Forward Total Impact on Currency (in 000s) Instruments Contracts Exposure* Net Assets* Not significant to the Fund.
December 31, 2019 (V) FINANCIAL INSTRUMENTS BY THE LEVEL IN THE FAIR VALUE HIERARCHY Australian Dollar $ 54,572 $ 0 $ 54,572 $ 2,729 (in 000s) British Pound 131,298 (258) 131,040 6,552 The tables below illustrate the classification of the Fund’s financial instruments Danish Krone 14,088 0 14,088 704 Euro 241,156 0 241,156 12,058 within the fair value hierarchy as at December 31, 2019 and 2018. Hong Kong Dollar 27,471 (92) 27,379 1,369 Israeli Shekel 3,706 0 3,706 185 Level 1 Level 2 Level 3 Total Japanese Yen 197,099 0 197,099 9,855 December 31, 2019 New Zealand Dollar 2,671 0 2,671 134 Equities $ 543,504 $ 244,358 $ 6 $ 787,868 Norwegian Krone 6,696 0 6,696 335 Underlying Funds 21,865 0 0 21,865 Singapore Dollar 10,728 0 10,728 536 Foreign Exchange Swedish Krona 23,469 0 23,469 1,173 Forward Contracts 0 0 0 0 Swiss Franc 68,164 0 68,164 3,408 Rights 37 0 0 37 United States Dollar 12,367 350 12,717 636 $ 565,406 $ 244,358 $ 6 $ 809,770 Total $ 793,485 $ 0 $ 793,485 $ 39,674 As a Percentage of As at the end of the period, investments with a fair value of $18,080 were Net Assets (%) 97.7 4.9 transferred from Level 2 to Level 1, mainly as a result of fair value factors
Foreign being applied to these investments as at December 31, 2018. Exchange Financial Forward Total Impact on Currency (in 000s) Instruments Contracts Exposure* Net Assets* Level 1 Level 2 Level 3 Total December 31, 2018 December 31, 2018 Australian Dollar $ 46,490 $ 0 $ 46,490 $ 2,324 Equities $ 449,585 $ 219,076 $ 0 $ 668,661 British Pound 114,119 (348) 113,771 5,689 Underlying Funds 10,360 0 0 10,360 Danish Krone 11,746 0 11,746 587 Rights 0 0 0 0 Euro 209,800 0 209,800 10,490 459,945 219,076 0 679,021 Hong Kong Dollar 23,837 0 23,837 1,192 Israeli Shekel 1,947 0 1,947 97 Foreign Exchange Japanese Yen 164,310 0 164,310 8,215 Forward Contracts 0 (2) 0 (2) New Zealand Dollar 1,555 0 1,555 78 $ 459,945 $ 219,074 $ 0 $ 679,019 Norwegian Krone 4,917 0 4,917 246 Singapore Dollar 9,163 0 9,163 458 As at the end of the period, investments with a fair value of $219,076 Swedish Krona 18,174 0 18,174 909 were transferred from Level 1 to Level 2 as a result of decreased activity Swiss Franc 58,033 0 58,033 2,902 in the market for those securities. United States Dollar 16,866 0 16,866 843 Total $ 680,957 $ (348) $ 680,609 $ 34,030 As a Percentage of Net Assets (%) 100.0 5.0
* Includes both monetary and non-monetary instruments, where applicable.
December 31, 2019 18 Annual Financial Statements TD International Index Fund Fund-Specific Notes to the Financial Statements
(VI) RECONCILIATION OF LEVEL 3 FAIR VALUE MEASUREMENTS (in 000s) The tables below reconcile the Fund’s Level 3 fair value measurements 2018 from January 1, 2019 to December 31, 2019 and January 1, 2018 to U.S. Equities December 31, 2018. Consumer Discretionary 0.1 International Equities Australia 7.0 Equities Austria 0.2 Balance at January 1, 2019 $ 0 Belgium 0.9 Gains (Losses) Chile 0.0 Net Change in Unrealized Appreciation/Depreciation China 0.1 of Investments and Derivatives 6 Denmark 1.7 Balance at December 31, 2019 $ 6 Finland 1.2 France 10.7 Total Change in Unrealized Appreciation/Depreciation Germany 8.6 for Assets Held at December 31, 2019 $ 6 Greece 0.0 Hong Kong 3.7 Equities Ireland 0.7 Balance at January 1, 2018 $ 0 Isle of Man 0.0 Sales, Paydowns and Maturity (5) Israel 0.5 Gains (Losses) Italy 2.0 Net Realized Gain (Loss) on Sale of Investments and Derivatives 5 Japan 24.1 Luxembourg 0.3 Balance at December 31, 2018 $ 0 Macau 0.1 Total Change in Unrealized Appreciation/Depreciation Malaysia 0.0 for Assets Held at December 31, 2018 $ 0 Mexico 0.0 Netherlands 4.7 As at December 31, 2019, if the value of the Level 3 investments were New Zealand 0.2 to increase or decrease by 10%, the value of the Fund would increase or Norway 0.7 decrease by $0.6 (December 31, 2018: $0). Portugal 0.2 Singapore 1.3 Investment Portfolio Concentration (%) (Note 8) South Africa 0.0 The following tables summarize the Fund’s investment portfolio concentration Spain 3.0 as at December 31, 2019 and 2018: Sweden 2.4 Switzerland 9.1
United Arab Emirates 0.0 2019 United Kingdom 14.7 Japan 24.2 Index Equivalents 1.5 United Kingdom 14.9 Foreign Exchange Forward Contracts 0.0 France 9.7 Other Net Assets (Liabilities) 0.3 Switzerland 8.7 Germany 8.0 100.0 Australia 6.8 Netherlands 4.5 Interest in Unconsolidated Structured Entities (in 000s) (Note 3) Hong Kong 3.3 The table below illustrates the Fund’s investment details in the Underlying Sweden 2.9 Funds as at December 31, 2019 and 2018. Spain 2.8 Fair Value Underlying Other Countries 11.2 of Fund’s Fund’s Exchange-Traded Funds 2.7 Underlying Funds Investment Net Assets Cash (Bank Overdraft) 0.2 December 31, 2019 Foreign Exchange Forward Contracts 0.0 iShares MSCI EAFE ETF $ 4,446 $ 83,814,455 Other Net Assets (Liabilities) 0.1 TD International Equity Index ETF 17,419 42,396 100.0 $ 21,865
December 31, 2018 iShares MSCI EAFE ETF $ 10,360 $ 85,023,319
December 31, 2019 19 Annual Financial Statements TD International Index Fund Fund-Specific Notes to the Financial Statements
Offsetting of Financial Assets and Liabilities (in 000s) (Note 3) The following table presents the recognized financial instruments that are offset, or subject to enforceable master netting arrangements, if certain conditions arise, or other similar agreements but that are not offset, and cash and financial instruments collateral received or pledged, as at December 31, 2019 and 2018 and shows in the Net Amount column what the impact would be in the Fund’s Statements of Financial Position if all set-off rights were exercised.
Related Amounts Not Amounts Net Amounts Set-Off in the Statements Gross Amounts Set-Off in the Presented in of Financial Position of Recognized Statements the Statements Financial Assets of Financial of Financial Financial (Liabilities) Position Position Instruments Cash Net Amount December 31, 2019 Derivative Assets $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Derivative Liabilities 0 0 0 0 0 0
December 31, 2018 Derivative Assets $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Derivative Liabilities (2) 0 (2) 0 0 (2)
The TD International Index Fund (the “Fund”) is not sponsored, promoted, sold or supported in any other manner by Solactive AG nor does Solactive AG offer any express or implicit guarantee or assurance either with regard to the results of using the Solactive GBS Developed Markets ex North America Large & Mid Cap CAD Index (CA NTR) (the “Index”) and/or any trade mark(s) associated with the Index or the price of the Index at any time or in any other respect. The Index is calculated and published by Solactive AG. Solactive AG uses its best efforts to ensure that the Index is calculated correctly. Irrespective of its obligations towards TDAM, Solactive AG has no obligation to point out errors in the Index to third parties including but not limited to investors and/or financial intermediaries of the Fund. Neither publication of the Index by Solactive AG nor the licensing of the Index or any trade mark(s) associated with the Index for the purpose of use in connection with the Fund constitutes a recommendation by Solactive AG to invest capital in said Fund nor does it in any way represent an assurance or opinion of Solactive AG with regard to any investment in the Fund.
December 31, 2019 20 Annual Financial Statements nNotes to the Financial Statements
1. The Funds instruments are derecognized when the right to receive cash flows from the instrument has expired or a Fund has transferred substantially all The TD Mutual Fund Trusts and TD Managed Assets Program Portfolios risks and rewards of ownership. As such, investment purchase and sale (collectively, the “Funds” and individually, the “Fund”) are open-end transactions are recorded as of the trade date. mutual funds established under the laws of Ontario and governed by their respective Declarations of Trust or Trust Indenture, as amended The Funds’ financial assets and financial liabilities, other than receivables from time to time. and payables, are subsequently measured at FVTPL with changes in fair value recognized in the Statements of Comprehensive Income. Other TD Asset Management Inc. (“TDAM”) is the manager, portfolio adviser receivables and payables are subsequently measured at amortized cost. and trustee of the Funds. TDAM, TDAM USA Inc., TD Investment Services Inc. (“TDIS”), TD Waterhouse Canada Inc. (“TDWCI”) and Epoch The Funds have determined that they meet the definition of an Investment Partners, Inc. (“Epoch”) are wholly-owned subsidiaries ‘investment entity’ and as a result, the Funds measure subsidiaries, of The Toronto-Dominion Bank (“TD”). The registered address of the if any, at FVTPL. An investment entity is an entity that: obtains funds Funds is P.O. Box 100, 66 Wellington Street West, TD Bank Tower, from one or more investors for the purpose of providing them with Toronto-Dominion Centre, Toronto, Ontario, M5K 1G8. investment management services; commits to its investors that its business purpose is to invest funds solely for returns from capital The financial year-end for the Funds is December 31. The Statements appreciation, investment income, or both; and measures and evaluates of Financial Position are presented as at December 31, 2019 and 2018, the performance of substantially all of its investments on a fair value as applicable. The Statements of Comprehensive Income, Statements of basis. The Funds’ investments may also include associates and joint Changes in Net Assets Attributable to Holders of Redeemable Units and ventures which are measured at FVTPL. Statements of Cash Flows are presented for the twelve-month periods ended December 31, 2019 and 2018, as applicable. Where a Fund or The Funds’ outstanding redeemable units’ entitlements include a series of a Fund was established during either period, the information contractual obligation to distribute any net income and net realized for that Fund or series is provided from the inception date, as disclosed capital gains in cash (at the request of the unitholder) and therefore in the Fund-Specific Notes to the Financial Statements (“Fund-Specific the ongoing redemption feature is not the Funds’ only contractual Notes”), to the applicable period end date and a comparative statement obligation. Consequently, the Funds’ Net Assets Attributable to Holders has only been presented for any period for which that Fund was in of Redeemable Units are classified as financial liabilities in accordance existence as at the reporting date. with the requirements of IAS 32, “Financial Instruments: Presentation”. The Funds’ obligations for Net Assets Attributable to Holders of These financial statements were authorized for issue by TDAM on Redeemable Units are presented at the redemption amount. March 13, 2020. The accounting policies for measuring the fair value of the Funds’ invest- 2. Basis of Presentation ments and derivatives are substantially similar to those used in measuring These financial statements have been prepared in accordance with the Funds’ net asset value (“NAV”) for transactions with unitholders. International Financial Reporting Standards as issued by the The NAV is the value of the total assets of a fund less the value of its International Accounting Standards Board (“IFRS”). These financial total liabilities determined, on each valuation day, in accordance with statements have been prepared under the historical cost convention, Part 14 of National Instrument 81-106, “Investment Fund Continuous as modified by the revaluation of financial assets and financial Disclosure”, for the purpose of processing unitholder transactions. Net liabilities (including derivative financial instruments) at fair value Assets Attributable to Holders of Redeemable Units, also referred to through profit or loss (“FVTPL”). as Net Assets, refers to net assets calculated in accordance with IFRS. As at all dates presented, there were no differences between the Funds’ 3. Summary of Significant Accounting Policies NAV per series unit and Net Assets per series unit.
Financial Instruments Financial instruments include financial assets and financial liabilities, such as investments, derivatives, cash, and other receivables and payables. Derivatives that are reflected in the Statements of Financial Position as Derivative Assets (Liabilities) include rights, warrants, forwards, options, futures and swap contracts, where applicable, and are financial contracts between two or more parties, and whose value is derived from the performance of an underlying asset or group of assets. Underlying assets include stocks, bonds, currencies, interest rates and market indices. The Funds classify and measure financial instruments in accordance with IFRS 9, “Financial Instruments”. Upon initial recognition, financial instruments are measured at FVTPL. All financial assets and liabilities are recognized in the Statements of Financial Position when a Fund becomes a party to the contractual requirements of the instrument. Financial
December 31, 2019 21 Annual Financial Statements nNotes to the Financial Statements
Fair Value Measurement (e) Options contracts that are traded in exchange markets are valued at Fair value is the price that would be received to sell an asset or paid to their closing prices on each valuation day. The premium received or transfer a liability in an orderly transaction between market participants paid on options written or purchased is included in the cost of the at the measurement date. The fair value of financial assets and liabilities options. Any difference between the current value of the contract and traded in active markets (such as publicly traded derivatives and marke- the value of the contract originated is recognized as Net Change in table securities) is based on quoted market prices at the close of trading Unrealized Appreciation/Depreciation. When options are closed or on the reporting date. The Funds use the last traded market price for exercised, the difference between the premium and the amount paid both financial assets and financial liabilities where the last traded price or received, or the full amount of the premium if the option expires falls within that day’s bid-ask spread. In circumstances where the last worthless, is reflected in the Statements of Comprehensive Income traded price is not within the bid-ask spread, TDAM determines the point as Net Realized Gain (Loss). The cost of a security purchased will be within the bid-ask spread that is most representative of fair value based reduced by the premium received on options when a written put on the specific facts and circumstances. option is exercised or increased by the amount paid on options when a purchased call option is exercised. The fair value of financial assets and liabilities not traded in an active market, including over-the-counter derivatives, is determined using (f) The Funds may enter into standardized, exchange-traded futures valuation techniques. The Funds use a variety of methods and make contracts to purchase or sell a financial instrument at a contracted assumptions that are based on market conditions existing at each price on a specified future date. Any difference between the value reporting date. Valuation techniques include the use of comparable at the close of business on the current valuation day and that of the recent arm’s length transactions, reference to other instruments that previous valuation day is settled in cash daily and recorded in the are substantially the same, discounted cash flow analysis, option pricing Statements of Comprehensive Income as Derivatives Income (Loss). models and other techniques commonly used by market participants Any cash deposits or borrowings on margin are reflected in the and which attempt to make the maximum use of observable inputs. Statements of Financial Position as Margin Deposit (Payable) on Derivatives. Short-term debt instruments as indicated in the Schedule The valuation methodology for specific types of investments held by of Investment Portfolio have been segregated and are held as margin the Funds is summarized below. against the futures contracts entered into by the Funds, as applicable. (a) Securities not listed on any recognized public securities exchange (g) The TD Mutual Fund Trusts may enter into a credit default swap are valued based on available quotations from recognized dealers in (“CDS”) agreements to gain exposure to debt instruments without such securities, where readily available. If securities have no available investing in them directly. A CDS agreement is a bilateral over-the- broker-dealer bid/ask quotes, TDAM uses its own pricing model to counter derivative contract between a protection buyer and a protec- price the securities. The pricing model will generally include the tion seller that exchange the credit risk of a specific issuer (reference discounted cash flow valuation approach, the use of a credit spread entity). The protection buyer pays a periodic premium, often quarterly, based on the terms of the security and the use of such credit and to the protection seller to assume the credit risk associated with a yield analysis comparables as TDAM believes are relevant in the particular credit event. Credit events include bankruptcy, a material circumstances. Debt instruments are valued based on mid prices, default and debt restructuring for a specified reference asset. If a where readily available. Other valuation techniques may be used, credit event occurs, the CDS agreements may be settled by either as described above, where applicable. the physical delivery of the referenced asset for proceeds equal to (b) Short-term debt instruments, repurchase and reverse repurchase par value or a cash payment equal to the loss amount. If there is no agreements are valued based on quotations received from recognized credit default event, no contingent amount is payable. investment dealers. During the reporting periods, certain TD Mutual Fund Trusts have (c) Real return bonds are valued based on the available public quotations entered into CDS indices as protection seller. Any upfront payment from recognized dealers. Changes in the inflation factor are included made or received by these funds at the initiation of a CDS agreement in Interest for Distribution Purposes in the Statements of is included in the CDS agreement’s fair value. Quarterly premiums Comprehensive Income. received from the counterparty are accrued daily and recorded as Derivative Income (Loss) in the Statements of Comprehensive Income. (d) The Funds may use foreign exchange forward contracts to hedge Changes in the fair value of the CDS agreements outstanding at the against or profit from fluctuations in foreign exchange rates. These reporting date are disclosed in the Statements of Comprehensive contracts are valued on each valuation day based on the difference Income as Net Change in Unrealized Appreciation/Depreciation. Prices between the contract rates and the current forward rates at the used to value the CDS are obtained directly from the data vendor measurement date applied to the contracts’ notional amount. The or broker. When CDS agreements expire or are closed out, the net net change in unrealized appreciation or depreciation and the net realized gain or loss is reflected in the Statements of Comprehensive realized gain or loss from closing out contracts are reflected in the Income as Net Realized Gain (Loss). Statements of Comprehensive Income as part of Net Gain (Loss) on Investments and Derivatives. The TD Mutual Fund Trusts’ exposure to CDS is limited to the notional amount of the contract less any applicable recoverable amount, calculated by the product of the notional amount and the recovery rate of the respective reference entity.
December 31, 2019 22 Annual Financial Statements nNotes to the Financial Statements
(h) The exchange-traded funds (“ETFs”) that are not managed by TDAM TDAM has a Global Fair Value Committee which oversees the perform- are valued based on quoted market prices at the close of trading on ance of the fair value measurements included in the financial statements the reporting date. of the Funds, including any Level 3 measurements. TDAM utilizes a variety of methods (as listed in the Fair Value Measurement section) (i) Investments in underlying conventional mutual funds and TDAM in determining the fair value of securities classified as Level 3. The managed ETFs are generally valued at the NAV per series unit of the committee also meets quarterly to perform reviews of the valuations investment funds as reported by the investment funds’ managers. of investments held by the Funds. Fair Value Hierarchy The classification of the Funds’ financial instruments within the fair The Funds classify their investments into fair value measurements value hierarchy as at December 31, 2019 and 2018, and any transfers within a hierarchy that prioritizes the inputs to fair value measurement. between levels at the end of the reporting periods as a result of changes The fair value hierarchy has the following three levels: in the lowest level input that is significant to the fair value measurement are disclosed in the Fund-Specific Notes, where applicable. Level 1 Quoted (unadjusted) prices in active markets for identical assets or liabilities; Interest in Unconsolidated Structured Entities Level 2 Inputs other than quoted prices that are observable for A structured entity is an entity that has been designed so that voting or the asset or liability either directly (that is, as prices) or similar rights are not the dominant factor in deciding who controls the indirectly (that is, derived from prices); and entity, such as when any voting rights relate to administrative tasks only Level 3 Inputs that are not based on observable market data and the relevant activities are directed by means of contractual arrange- (that is, unobservable inputs). ments. TDAM has determined that all of the underlying investment funds (“Underlying Funds”) in which the Funds invest are unconsolidated All fair value measurements are recurring. The carrying values of Cash, structured entities. Underlying Funds include conventional mutual funds Margin Deposit on Derivatives, Subscriptions Receivable, Interest and and ETFs. In making this determination, TDAM evaluated the fact that Dividends Receivables, Receivable for Investments Sold, Bank Overdraft, decision making about Underlying Funds’ activities is generally not Margin Payable on Derivatives, Payable for Investments Purchased, governed by voting or similar rights held by the Funds and other investors Redemptions Payable, Distributions Payable, Accrued Liabilities and the in any Underlying Funds. redemption value of Funds’ obligation for Net Assets Attributable to Holders of Redeemable Units approximate their fair values due to their The Funds may invest in Underlying Funds whose investment objectives short-term nature. range from seeking to achieve short- to long-term income and/or capital growth potential. The Funds’ interests in these securities as at Fair values are classified as Level 1 when the related security or deriva- December 31, 2019 and 2018 are included at their fair value in the tive is actively traded and a quoted price is available. If an instrument Statements of Financial Position, which represent the Funds’ exposure classified as Level 1 subsequently ceases to be actively traded, it is in these Underlying Funds. The Funds do not provide and have not transferred out of Level 1. In such cases, instruments are reclassified committed to provide any additional significant financial or other into Level 2, unless the measurement of their fair value requires the use support to the Underlying Funds. The change in fair value of each of of significant unobservable inputs, in which case they are classified as the Underlying Funds during the reporting periods is included in Net Level 3. The Funds’ policy is to recognize transfers into and out of the Change in Unrealized Appreciation/Depreciation in the Statements fair value hierarchy levels at the end of the reporting period. of Comprehensive Income as part of Net Gain (Loss) on Investments The hierarchy gives the highest priority to unadjusted quoted prices in and Derivatives. Additional information on the Funds’ interest in active markets for identical assets or liabilities (Level 1) and the lowest Underlying Funds, where applicable, is provided in the Schedule of priority to unobservable inputs (Level 3). Investment Portfolio and Fund-Specific Notes. The classification within the hierarchy is based on the lowest level input The TD Mutual Fund Trusts may also invest in mortgage-related and/or that is significant to the fair value measurement. For this purpose, the other asset-backed securities that directly or indirectly represent a significance of an input is assessed against the fair value measurement participation in, or are secured by and payable from, mortgage loans in its entirety. If a fair value measurement uses observable inputs that on real property. Mortgage-related securities are created from pools of require significant adjustment based on unobservable inputs, that residential or commercial mortgage loans, including mortgage loans measurement is a Level 3 measurement. Assessing the significance of made by savings and loan institutions, mortgage bankers, commercial a particular input to the fair value measurement in its entirety requires banks and others. The debt and equity securities issued by these issuers judgment, considering factors specific to the asset or liability. may include tranches with varying levels of subordination. The Funds may invest in senior notes that have a first lien on assets and have The determination of what constitutes ‘observable’ requires significant minimum exposure to junior or subordinate tranches. These securities judgment. Observable data is considered to be that market data that is may provide a monthly payment which consists of both interest and readily available, regularly distributed or updated, reliable and verifiable, principal payments. Other asset-backed securities are created from many not proprietary, and provided by independent sources that are actively types of assets, including auto loans, credit card receivables, home equity involved in the relevant market. loans, and student loans.
December 31, 2019 23 Annual Financial Statements nNotes to the Financial Statements
As at December 31, 2019 and 2018, the fair value of mortgage-related Cash/Bank Overdraft and other asset-backed securities of these funds, where applicable, is Cash is comprised of deposits with financial institutions. Bank disclosed as Investments in the Statements of Financial Position. The fair overdrafts are included under Current Liabilities in the Statements value represents the maximum exposure to losses at those dates. The of Financial Position. change in fair value of mortgage-related and other asset-backed securities Margin Deposit (Payable) on Derivatives during the reporting periods is included in Net Change in Unrealized Margin accounts represent margin deposits or payable in respect Appreciation/Depreciation in the Statements of Comprehensive Income of derivatives entered into by the Funds. as part of Net Gain (Loss) on Investments and Derivatives. Receivable for Investments Sold/Payable Translation of Foreign Currencies for Investments Purchased A Fund’s functional currency, as disclosed in the Fund-Specific Notes, Receivable for Investments Sold and Payable for Investments Purchased represents the currency that TDAM views to most faithfully represent represent trades that have been contracted for but not yet settled or the economic effects of the Fund’s underlying transactions, events and delivered on the Statements of Financial Position dates. conditions taking into consideration how units are issued or redeemed and how returns are measured. Foreign currency transactions are Valuation of Series Units translated into the functional currency using the exchange rates TDAM generally calculates the NAV for each series of the Funds as at prevailing at the dates that transactions occur. Assets and liabilities 4 p.m. Eastern Time on each day that the Toronto Stock Exchange is denominated in a foreign currency are translated into the functional open for trading. However, in some unforeseen circumstances, the series currency using the exchange rate prevailing at the measurement date. NAV per unit may be calculated at another time. Realized foreign exchange gains and losses on the sale of investments The NAV is calculated, for processing subscription, switch, conversion and derivatives are included in Net Realized Gain (Loss). Unrealized or redemption orders of series units, for each series of units of the foreign exchange gains and losses on investments and derivatives Funds by taking the series’ proportionate share of the individual Fund’s are included in Net Change in Unrealized Appreciation/Depreciation. common assets less that series’ proportionate share of its common Realized and unrealized foreign exchange gains and losses relating liabilities and deducting from this amount all liabilities that relate solely to income, cash, other assets and liabilities are presented as Foreign to that specific series. Exchange Gain (Loss) on Cash and Other Net Assets in the Statements The Net Assets Attributable to Holders of Redeemable Units – Per Series of Comprehensive Income. Unit is determined by dividing the total Net Assets Attributable to Offsetting of Financial Assets and Liabilities Holders of Redeemable Units of each series of the Funds by the total Financial assets and liabilities are offset and the net amount reported number of units outstanding of that series as at the reporting date. in the Statements of Financial Position where the Funds have a legally Income Recognition enforceable right to offset the recognized amounts and there is an Interest for Distribution Purposes as shown in the Statements of intention to settle on a net basis or realize the asset and settle the Comprehensive Income consists of interest income from cash and the liability simultaneously. In the normal course of business, the Funds may coupon interest on debt instruments accounted for on an accrual basis. enter into various master netting agreements or other similar arrange- Interest receivable is included in Interest and Dividends Receivables ments that do not meet the criteria for offsetting in the Statements of in the Statements of Financial Position based on the debt instruments’ Financial Position but still allow for the related amounts to be set-off stated rates of interest. The Funds do not amortize premiums paid or in certain circumstances, such as bankruptcy or the termination of the discounts received on the purchase of debt securities except for zero contracts. Offsetting information, where applicable, is presented in the coupon bonds which are amortized. Fund-Specific Notes. Dividend income from equities and ETFs are recognized on ex-dividend Reverse Repurchase Agreements dates and distributions from underlying mutual funds are recognized Certain TD Mutual Fund Trusts may enter into reverse repurchase on ex-distribution dates. Dividends received from ETFs are recognized transactions. In a reverse repurchase transaction, a fund buys a security in the Statements of Comprehensive Income based on the nature of at one price from a third party and agrees to sell the same security back the underlying components such as interest income, dividend income, to the same party at a specified price on an agreed future date and the capital gains and return of capital. Distributions received from underlying difference is reflected as Income from Reverse Repurchase Agreements mutual funds are included in Distributions from Underlying Funds in the in the Statements of Comprehensive Income. Statements of Comprehensive Income. The risk with these types of transactions is that the other party may The TD Mutual Fund Trusts may engage in securities lending pursuant default under the agreement or go bankrupt. These risks are reduced by to the terms of an agreement which includes restrictions as set out in requiring the other party to provide collateral to these funds. The value Canadian securities legislation. The income earned from securities lending, of the collateral must be at least 102 percent of the market value of where applicable, is included in the Statements of Comprehensive Income the security and the collateral is marked to market on each business day. as it is earned. The fair value of the securities loaned and fair value of The type of securities received and related collateral held by these funds, the collateral held are determined daily. The details of securities lending where applicable, are listed in the Schedule of Investment Portfolio. income, aggregate values of securities on loan and related collateral held are provided in the Fund-Specific Notes, where applicable.
December 31, 2019 24 Annual Financial Statements nNotes to the Financial Statements
Investment Transactions and Transaction Costs Classification and Measurement of Investments For the purposes of calculating realized and unrealized gains and losses In classifying and measuring financial instruments held by the Funds, from investment transactions, the cost of each investment security is TDAM has assessed the Funds’ business model for managing their determined on an average cost basis, excluding transaction costs. respective portfolios of investments and evaluating the performance on a fair value basis, and concluded that these financial assets and Transaction costs, such as brokerage commissions, incurred by the Funds liabilities should be measured at FVTPL in accordance with IFRS 9. in the purchase and sale of investments at fair value are recognized in the Statements of Comprehensive Income in the period incurred. Investment Entity Commissions incurred, where applicable, are also disclosed in the Fund- In determining whether a Fund meets the definition of an investment Specific Notes. No transaction costs are incurred when the Funds invest entity, TDAM may be required to make significant judgments about in underlying mutual funds; however, the underlying mutual funds’ whether a Fund has the typical characteristics of an investment entity. investments may be subject to transaction costs. Each Fund may hold only one investment, an underlying fund (or have only one investor or have investors that are its related parties); however, Allocation of Income and Expenses, Realized and Unrealized Gains (Losses) consistent with the investment entity definition, each Fund primarily Expenses (excluding interest charges and portfolio transaction costs) are obtains funds from one or more investors for the purpose of providing accrued daily, separately for each series. Interest charges and portfolio investment management services, commits to its investors that the transaction costs along with income, gains and losses, are allocated to business purpose is to invest the funds solely for returns from capital each series based on their respective Net Assets Attributable to Holders appreciation, investment income or both, and measures and evaluates of Redeemable Units of the Fund. the performance of its investments on a fair value basis.
Increase (Decrease) in Net Assets Attributable to Holders 5. Redeemable Units of Redeemable Units – Per Series Unit For TD Mutual Fund Trusts and TD Managed Assets Program Portfolios, The Increase (Decrease) in Net Assets Attributable to Holders of each individual series of units is sold under different purchase options Redeemable Units – Per Series Unit is calculated by dividing the Increase and may have higher or lower management fees based on their specific (Decrease) in Net Assets Attributable to Holders of Redeemable Units of attributes, as summarized below, reflecting the extent of the investment each series by the weighted average units outstanding of that series for advice provided. the reporting period, except when a series was established during the reporting period, in which case the Weighted Average Units Outstanding TD Mutual Fund Trusts is calculated from the date of commencement of operation of that series. Each TD Mutual Fund Trust is authorized to issue an unlimited number of units of multiple series that rank equally and are available for sale 4. Critical Accounting Estimates and Judgments under a single simplified prospectus. In addition, each of these funds is The preparation of financial statements requires management to use also authorized to issue an unlimited number of units of multiple series judgment in applying its accounting policies and to make estimates to be sold under a confidential offering memorandum or other separate and assumptions about the future. The following discusses the most simplified prospectus. The various series that may be offered by these significant accounting judgments and estimates that the Funds have funds are as described below. made in preparing the financial statements: Investor Series: Offered on a no-load basis to investors. Fair Value Measurement of Derivatives and Securities H5 Series Offered on a no-load basis to investors who wish to receive Not Quoted in an Active Market and H8 Series: a regular monthly cash flow from the Funds. Monthly distri- The Funds may hold financial instruments that are not quoted in active butions may consist of net income, net realized capital gains markets, including derivatives. As described in Note 3, the use of and/or a return of capital. valuation techniques for financial instruments and derivatives that are not quoted in an active market requires TDAM to make assumptions Premium Series: Offered on a no-load basis to large investors and others who make the required minimum investment, as determined that are based on market conditions existing as at the reporting date by TDAM from time to time. of the financial statements. Changes in assumptions about these factors could affect the reported fair values of financial instruments. Refer K-Series: Offered on a no-load basis to large investors and others to the Fund-Specific Notes for further information about the fair value who make the required minimum investment, as determined measurement of the Funds’ financial instruments, where applicable. by 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 TDWCI, or other discount brokers.
December 31, 2019 25 Annual Financial Statements nNotes to the Financial Statements
Advisor Series: Offered to investors who seek investment advice and want Effective July 26, 2018, H-Series was renamed as H5 Series or H8 Series, the option of transacting on a front-end load, back-end T-Series was renamed as T5 Series or T8 Series and S-Series was renamed load, low-load or low-load-2 basis. as FT5 Series or FT8 Series. Refer to Fund-Specific Notes of the applicable Funds for further details. T5 Series Offered to investors who seek investment advice; want the and T8 Series: option of transacting on a front-end load, back-end load, TD Managed Assets Program Portfolios low-load or low-load-2 basis; and who wish to receive a Each TD Managed Assets Program Portfolio is authorized to issue an regular monthly cash flow from the Funds. Monthly distribu- unlimited number of units of multiple series that rank equally and tions may consist of net income, net realized capital gains are available for sale under a single simplified prospectus. The various and/or a return of capital. series that may be offered by these funds are as described below. F-Series: Offered to investors, through fee-based financial advisors or dealer-sponsored “wrap accounts”, and others who Investor Series: Offered on a no-load basis to investors. pay an annual fee to their dealer instead of transactional H5 Series: Offered on a no-load basis to investors who wish to receive sales charges. a regular monthly cash flow from the Funds. Monthly FT5 Series Offered to investors, through fee-based financial advisors distributions may consist of net income, net realized capital and FT8 Series: or dealer-sponsored “wrap accounts”, who wish to receive gains and/or a return of capital. a regular monthly cash flow from the Funds. Monthly Premium Series: Offered on a no-load basis to large investors and others distributions may consist of net income, net realized capital who make the required minimum investment, as determined gains, and/or a return of capital. These series may also be by TDAM from time to time. offered to other investors who pay an annual fee to their K5 Series: Offered on a no-load basis to large investors and others dealer instead of transactional sales charges. who make the required minimum investment, as determined Premium Offered to large investors, through fee-based financial by TDAM from time to time, and who wish to receive a F-Series: advisors or dealer-sponsored “wrap accounts”, and others regular monthly cash flow from the Funds. Monthly distribu - who pay an annual fee to their dealer instead of trans - tions may consist of net income, net realized capital gains, actional sales charges. For this series, investors must make and/or a return of capital. the required minimum investment, as determined by TDAM e-Series: Offered on a no-load basis to investors who want to from time to time. complete their transactions electronically. W-Series: Offered to investors, through certain wealth management D-Series: Offered on a no-load basis to investors who want to businesses of TD Bank Group, including certain divisions complete their transactions through TD Direct Investing, of TDWCI, or other dealers authorized by TDAM, who a division of TDWCI, or other discount brokers. pay an annual fee to their dealer instead of transactional sales charges. Advisor Series: Offered to investors who seek investment advice and want the option of transacting on a front-end load, back-end Private Series Offered on a no-load basis to large investors who make the load, low-load or low-load-2 basis. and Private-EM required minimum investment as determined by TDAM, and Series: have entered into a Private Series agreement with TDAM. T5 Series: Offered to investors who seek investment advice; want the option of transacting on a front-end load, back-end load, Institutional Offered on a no-load basis to large investors, such as group low-load or low-load-2 basis; and who wish to receive a Series: savings plans and others who make the required minimum regular monthly cash flow from the Funds. Monthly distribu - investment, as determined by TDAM from time to time. tions may consist of net income, net realized capital gains C-Series: Offered on a no-load basis to large investors who make and/or a return of capital. the required minimum investment as determined by TDAM F-Series: Offered to investors, through fee-based financial advisors and have entered into a C-Series agreement with TDAM. or dealer-sponsored “wrap accounts”, and others who O-Series: Offered on a no-load basis to large investors, such as pay an annual fee to their dealer instead of transactional institutions and mutual funds, who make the required sales charges. minimum investment as determined by TDAM, and have FT5 Series Offered to investors, through fee-based financial advisors entered into an O-Series agreement with TDAM. and FT8 Series: or dealer-sponsored “wrap accounts”, who wish to receive a regular monthly cash flow from the Funds. Monthly Effective November 1, 2019, the back-end load, low-load and low-load-2 distributions may consist of net income, net realized capital purchase options of Advisor Series, T5 Series and T8 Series were closed gains, and/or a return of capital. These series may also be to all purchases by investors. Switches and conversions are permitted if offered to other investors who pay an annual fee to their shares or units of the TD Mutual Funds and TD Managed Assets Program dealer instead of transactional sales charges. Portfolios being switched or converted from are held in the same purchase option. W-Series: Offered to investors, through certain wealth management businesses of TD Bank Group, including certain divisions of TDWCI, or other dealers authorized by TDAM, who pay an annual fee to their dealer instead of transactional sales charges.
December 31, 2019 26 Annual Financial Statements nNotes to the Financial Statements
WT5 Series Offered to investors who wish to receive a regular (b) TD Managed Assets Program Portfolios and WT8 Series: monthly cash flow from the Funds, through certain wealth In consideration for the provision of management, distribution and management businesses of TD Bank Group, including portfolio management services to the TD Managed Assets Program “certain divisions of TDWCI, or other dealers authorized Portfolios, each series of these funds pay TDAM an annual management by TDAM, who pay an annual fee to their dealer instead fee. The management fee is calculated and accrued on a daily basis for of transactional sales charges. Monthly distributions may each series based on the NAV of that series and paid monthly to TDAM. consist of net income, net realized capital gains, and/or Where the TD Mutual Fund Trusts and TD Managed Assets Program a return of capital. Portfolios invest in Underlying Funds, there are fees and expenses Effective November 1, 2019, the back-end load, low-load and low-load-2 payable by the Underlying Funds in addition to those paid by the Funds. purchase options of Advisor Series, and T5 Series were closed to all pur- However, no management fees are payable by Funds that invest in chases by investors. Switches and conversions are permitted if shares or Underlying Funds that, to a reasonable person, would duplicate a fee units of the TD Mutual Funds and TD Managed Assets Program Portfolios payable by the Underlying Funds for the same services. TDAM may waive being switched or converted from are held in the same purchase option. all or a portion of the management fees charged to the Funds, which may be discontinued at any time by TDAM at its discretion without Effective October 25, 2018, H-Series, K-Series, T-Series, S-Series and notice to unitholders. Detailed information on the management fees of WT-Series were renamed as H5 Series, K5 Series, T5 Series, FT5 Series the Funds is provided in the Fund-Specific Notes. and WT5 Series, respectively. Refer to Fund-Specific Notes of the applicable Funds for further details. Administration Fees (a) TD Mutual Fund Trusts Units of TD Mutual Fund Trusts and TD Managed Assets Program In consideration for paying certain operating expenses, TDAM is paid an Portfolios are redeemable at the option of the unitholder in accordance annual administration fee with respect to certain series of the TD Mutual with their respective provisions of the Declarations of Trust or Trust Fund Trusts. The administration fee includes recordkeeping and communi- Indenture. Units of these funds are issued or redeemed on a daily basis cation costs, custodial costs, legal fees, audit fees, filing fees and bank at the NAV per series unit next determined after the subscription, charges. The administration fee is calculated and accrued on a daily basis switch, conversion order or redemption request, respectively, is received for each applicable series based on the NAV of that series and paid by TDAM. Subscriptions and redemptions include units converted from monthly to TDAM. Annual administration fees for each series of these one series to another series within a Fund in the Statements of Changes funds, where applicable, are provided in the Fund-Specific Notes. in Net Assets Attributable to Holders of Redeemable Units. However, conversions between series within a Fund are excluded from Proceeds The administration fee is payable in respect of Investor Series, H5 Series, from Issuances of Redeemable Units and Amounts Paid on Redemption H8 Series, D-Series, Advisor Series and T5 Series and T8 Series of the of Redeemable Units in the Statements of Cash Flows. TD Mutual Fund Trusts, as applicable, other than the money market funds, TD Ultra Short Term Bond Fund, TD Short Term Bond Fund, TD Canadian 6. Related Party Transactions Bond Fund, TD Global Conservative Opportunities Fund, TD Global Balanced Opportunities Fund, the Index funds and Advisor Series units Capital of TD U.S. Equity Portfolio. The administration fee is also payable in TDAM, affiliates of TDAM, and/or other investment funds managed respect of Premium Series and K-Series of TD Mutual Fund Trusts other by TDAM may invest in units of the Funds from time to time. The than TD U.S. Money Market Fund, TD Short Term Bond Fund, TD Canadian investment made by related parties is disclosed in the Fund-Specific Bond Fund, TD Income Advantage Portfolio, TD Canadian Core Plus Notes if significant. Bond Fund, TD Corporate Bond Plus Fund and TD Global Conservative Management Fees Opportunities Fund. (a) TD Mutual Fund Trusts No administration fee is charged with respect to other series of the In consideration for the provision of management, distribution, and TD Mutual Fund Trusts. portfolio management services and oversight of any portfolio sub- advisory services provided to the TD Mutual Fund Trusts, TDAM (b) TD Managed Assets Program Portfolios receives an annual management fee in respect of certain series of Except for the TD Managed ETF Portfolios, no administration fee is these funds. The management fee is calculated and accrued on a daily charged to the TD Managed Assets Program Portfolios. For the basis for each applicable series based on the NAV of that series and TD Managed ETF Portfolios, in consideration for paying certain operating paid monthly to TDAM. expenses, TDAM is paid an annual administration fee with respect to D-Series of the Funds. The administration fee includes recordkeeping No management fees are charged with respect to Private Series and and communication costs, custodial costs, certain legal fees, audit fees, O-Series units. Instead, unitholders in Private Series and O-Series units regulatory filing fees and bank charges. The administration fee is may be charged a fee directly by TDAM. calculated and accrued on a daily basis based on the NAV of D-Series and paid monthly to TDAM. Annual administration fees for D-Series of the Funds are provided in the Fund-Specific Notes.
December 31, 2019 27 Annual Financial Statements nNotes to the Financial Statements
Operating Expenses (b) TD Managed Assets Program Portfolios Fund’s Independent Review Committee (“IRC”) Except for the TD Managed ETF Portfolios, all operating expenses of the TDAM is responsible for management of the Funds’ investment portfolios, TD Managed Assets Program Portfolios (including for services provided including the making of decisions relating to the investment of the by TDAM or its affiliates) are paid for by TDAM, including cost of the Funds’ assets. IRC, recordkeeping and communication costs, custodial, legal, audit and filing fees, bank charges, borrowing costs, and all taxes on such costs. TDAM has established an IRC in respect of the Funds and the Underlying Funds managed by TDAM. The IRC acts as an impartial and independent For the TD Managed ETF Portfolios, TDAM pays certain operating committee to review and provide recommendations or, if appropriate, expenses. Each TD Managed ETF Portfolio is responsible for paying approvals respecting any transactions in which TDAM may have a conflict expenses associated with borrowing, the IRC, compliance with any of interest. The IRC prepares, at least annually, a report of its activities new governmental and regulatory requirements, new types of costs for unitholders of the Funds. or expenses, and all taxes on such costs and expenses.
The IRC has approved standing instructions to permit the Funds and/or Taxes on Expenses the Underlying Funds managed by TDAM to enter into the following The Funds also pay applicable goods and services tax and harmonized securities transactions: sales tax at a blended rate to TDAM on management fees, administration fees and certain operating expenses based on the province or territory of (i) trades in securities of TD or any affiliate or associate thereof; residence of the investors in each series of the Funds, which are included (ii) investments in the securities of an issuer where TD Securities Inc., with the respective expense in the Statements of Comprehensive Income. TDWCI, or any other affiliate of TDAM (a “Related Dealer”) acted as an underwriter during the distribution of such securities and Waived Expenses the 60-day period following the completion of the distribution of TDAM, at its discretion, may waive or absorb a portion of the expenses the underwritten securities; otherwise payable by the Funds. These waivers or absorptions may (iii) purchases or sales of securities of an issuer from or to another be terminated at any time without notice to unitholders. The amount investment fund or discretionary managed account managed by of expenses waived or absorbed is disclosed in the Statements of TDAM; and Comprehensive Income as Waived Expenses, where applicable. (iv) purchases of securities from or sales of securities to a Related Dealer, The Accrued Liabilities in the Statements of Financial Position represents where it acted as principal. the amount of management fees, administration fees and operating Investments in securities of TD, interests in Underlying Funds managed by expenses (including applicable taxes) payable to TDAM by the Funds as TDAM, or investments in any affiliates that were held by the Funds at the at the reporting period end. end of the reporting period are disclosed in the Schedule of Investment Brokerage Commissions and Soft Dollars Portfolio and/or the Fund-Specific Notes. (a) TD Mutual Fund Trusts The compensation and relevant expenses of IRC members are Brokerage commissions (including other transaction costs) paid on allocated among the investment funds managed by TDAM and disclosed securities transactions and amounts paid to related parties of TD for in the Statements of Comprehensive Income as Independent Review brokerage services provided to these funds for the reporting periods Committee Fees. ended December 31, 2019 and 2018, where applicable, are disclosed (a) TD Mutual Fund Trusts in the Fund-Specific Notes. TDAM pays all of the operating expenses with respect to O-Series units Client brokerage commissions are used as payment for order execution of the TD Mutual Fund Trusts. services and/or research services. The portfolio advisers or TDAM may Private Series and Private-EM Series of the TD Mutual Fund Trusts and select brokers including its affiliates, who charge a commission in excess Advisor Series of TD U.S. Equity Portfolio bear their respective pro rata of that charged by other brokers (“soft dollars”) if they determine in share of the operating expenses which are common to the operation of good faith that the commission is reasonable in relation to the order all series of these funds as well as those expenses which are attributable execution and research services utilized. solely to that series (which may be payable to TDAM or its affiliates), For debt instruments traded in the over the counter markets where client including IRC costs, recordkeeping and communication costs, custodial, brokerage commissions are not charged, soft dollars or client brokerage legal, audit and filing fees, bank charges, borrowing costs, all taxes, commissions are not generated. For equities or other securities where costs relating to compliance with any new governmental and regulatory client brokerage commissions are charged, the soft dollar portion of the requirements, and new types of costs or expenses. amount paid or payable for goods and services other than order execu- For other series of the TD Mutual Fund Trusts, TDAM pays all of the tion for the TD Mutual Fund Trusts is not generally ascertainable. Any operating expenses (including services provided by TDAM or its affiliates), ascertainable soft dollar value received under the soft dollar arrangement other than costs and expenses associated with: all taxes; borrowing; entered into by the portfolio advisers or TDAM, where applicable, is the IRC; compliance with any new governmental and regulatory require- disclosed in the Fund-Specific Notes. ments, and new types of costs or expenses.
December 31, 2019 28 Annual Financial Statements nNotes to the Financial Statements
(b) TD Managed Assets Program Portfolios If a Fund invests in Underlying Funds, TDAM seeks to reduce financial These funds do not incur any brokerage commissions for executing risks by diversifying investments across the three main asset classes: transactions in the underlying mutual funds, and accordingly will not money market investments for safety, bonds for income and equity receive any investment or research services from brokers in exchange investments for growth, where applicable. Since different types of for commissions paid for such transactions. However, if these funds investments tend to move independently from one another, positive invest in underlying ETFs, brokerage commissions will be paid on the performance in one asset class may help to offset negative performance purchase or sale of units of the underlying ETFs and amounts paid to in another, thereby reducing volatility and overall risk in the long-term. related parties of TD for brokerage services provided to these funds The Funds are managed in accordance with their respective Investment for the reporting periods ended December 31, 2019 and 2018, where Restrictions. applicable, are disclosed in the Fund-Specific Notes. (a) Market Risk Certain of the Underlying Funds have incurred brokerage commissions, (i) Interest Rate Risk a portion of which may have been received by the Underlying Funds’ Interest rate risk arises from the possibility that changes in interest investment advisers in the form of investment or research services rates will affect the future cash flows or the fair values of interest- (“soft dollars”). Such amounts for each of the TDAM managed bearing investments. Underlying Funds are disclosed in the Underlying Funds’ financial statements, where ascertainable. A Fund’s exposure to interest rate risk is concentrated in its investments in debt instruments (such as bonds and debentures) and interest rate 7. Taxation derivative instruments, if any. Short-term investments, currencies and The Funds (except for the TD Managed ETF Portfolios) qualify or intend other assets and liabilities are short-term in nature and/or non-interest to qualify as mutual fund trusts under the Income Tax Act (Canada) bearing and not subject to significant amounts of risk due to fluctuations (“Tax Act”), unless otherwise disclosed in the Fund-Specific Notes. in the prevailing levels of market interest rates. TD Managed ETF Portfolios qualify as unit trusts under the Tax Act. All If a Fund invests in Underlying Funds, it is exposed to indirect interest or substantially all of the net investment income and sufficient amounts rate risk to the extent of the interest-bearing financial instruments held of net capital gains realized in any taxation year are distributed to by the Underlying Funds. A Fund’s direct exposure to interest rate risk, unitholders such that no income tax is payable by the Funds, except where significant, is disclosed in the Fund-Specific Notes. that in certain circumstances, a Fund that is not a mutual fund trust (ii) Currency Risk may become liable to pay alternative minimum tax under the Tax Act. A Fund may hold financial instruments denominated in currencies other As a result of the distributions, the Funds have determined that they than its functional currency. It is therefore exposed to currency risk, as are in substance not taxable and therefore, do not record income taxes the value of the financial instruments denominated in other currencies in the Statements of Comprehensive Income nor do they recognize any will fluctuate due to changes in the foreign exchange rates of those deferred tax assets or liabilities in the Statements of Financial Position. currencies in relation to the Fund’s functional currency. The Funds’ capital and/or non-capital losses carry forward, where appli- cable, are provided in the Fund-Specific Notes. Capital losses have no Where a Fund invests in any Underlying Funds, it is exposed to indirect expiry. Non-Capital losses can be carried forward for up to twenty years. currency risk in the event that the Underlying Funds invest in financial instruments that are denominated in a currency other than the The Funds may incur withholding taxes imposed by certain countries on Underlying Funds’ functional currency. investment income and capital gains. Such income and gains are recorded on a gross basis and the related withholding taxes are reported as Tax A Fund and/or its Underlying Funds may enter into foreign exchange Reclaims (Withholding Taxes) in the Statements of Comprehensive Income. forward contracts for hedging purposes to reduce its foreign currency exposure or to establish exposure to foreign currencies. 8. Financial Risk Management A Fund’s direct exposure to currency risk (including monetary and Financial Risk Factors non-monetary instruments), where significant, is disclosed in the Each Fund is exposed to a variety of financial risks: these may include Fund-Specific Notes. Where a Fund invests in a single Underlying Fund, market risk (including interest rate risk, currency risk, and other price the direct and indirect exposure to currency risk (including monetary risk), credit risk, liquidity risk and concentration risk. All investments and non-monetary instruments), where significant, is disclosed in the present a risk of loss of capital. Fund-Specific Notes. TDAM seeks to reduce financial risks by employing and overseeing professional and experienced portfolio advisers that regularly monitor the Funds’ positions and market events and diversify investment portfolios within the constraints of each Fund’s investment objectives, investment strategies and applicable TDAM policies and procedures (collectively referred to as “Investment Restrictions”).
December 31, 2019 29 Annual Financial Statements nNotes to the Financial Statements
(iii) Other Price Risk A Fund may also be exposed indirectly to credit risk if it invests in Other price risk is the risk that securities will fluctuate in value because Underlying Funds in the event that the Underlying Funds invest in debt of changes in market prices (other than those arising from interest instruments or derivatives. rate risk or currency risk). TDAM seeks to reduce this risk through its The Funds and their Underlying Funds managed by TDAM only buy Investment Restrictions. and hold short-term notes with a minimum of R-1 Low credit rating by In determining each Fund’s sensitivity impact from exposure to other DBRS Limited or an equivalent rating from another recognized credit price risk, a historical beta may be used when applicable. Historical beta, rating agency. a measure of the sensitivity of a fund’s returns to market returns, is A Fund’s direct exposure to short-term and/or debt instruments, generally derived from comparing 36 months of returns between a fund by ratings categories, where applicable, is disclosed in the Fund- and its benchmark. As such, beta inherently includes effects previously Specific Notes. reflected in the interest rate risk and currency risk disclosures. Historical beta may not be representative of future beta. The TD Mutual Fund Trusts and the Underlying Funds held by the Funds may also engage in securities lending transactions. For these funds Where a Fund invests in a single Underlying Fund, it is exposed to that are managed by TDAM, the securities lending transactions are indirect other price risk in the event that the Underlying Fund invests with counterparties that have a minimum credit rating of A by S&PGR in equity securities. As a result, other price risk, reflecting this indirect or an equivalent rating from another credit agency. The value of cash exposure, is provided in the Fund-Specific Notes. or securities held as collateral by these funds in connection with these Where a Fund invests in several Underlying Funds, its exposure to transactions is at least 102 percent of the fair value of the securities other price risk includes all investments in Underlying Funds. A Fund’s loaned. The collateral and loaned securities are marked to market on direct exposure to other price risk, where applicable, is disclosed in each business day. The aggregate fair value of the securities loaned, the Fund-Specific Notes. together with repurchase transactions, are limited to 50 percent of each fund’s NAV determined immediately after the fund enters into any such Except for written options and equities sold short, the maximum risk transaction. Information about the fair values of securities lent and resulting from financial instruments is the fair value of the financial collateral held and securities lending income earned, where applicable, instruments as presented in the Statements of Financial Position. Possible is disclosed in the Fund-Specific Notes. losses from written options and equities sold short can be unlimited. In the TD Managed Assets Program Portfolios, where applicable, the (b) Credit Risk portfolio adviser reviews these funds’ credit positions as part of the Credit risk is the risk that one party to a financial instrument will cause investment management process. a financial loss to the other party by failing to discharge an obligation. Where applicable, a Fund’s main credit risk concentration is in debt (c) Liquidity Risk instruments and derivative instruments it holds. A Fund’s exposure to Liquidity risk is defined as the risk that a fund may not be able to credit risk is the risk that an issuer of debt instruments or a counterparty settle or meet its obligations on time or at a reasonable price. A fund’s to derivative instruments will be unable to pay amounts in full when due. exposure to this risk is concentrated in the daily cash redemptions of All transactions in listed securities are settled or paid for upon delivery redeemable units. The Funds primarily invest in securities that are traded using approved brokers. The risk of default with a broker is considered in active markets and can be readily disposed of. In addition, the Funds minimal, as delivery of securities sold is only made once the broker has retain sufficient cash and cash equivalents to maintain liquidity, and received payment. Payment is made on a purchase once the securities have the ability to borrow up to 5 percent of their respective NAV for have been received by the broker. The trade will fail if either party fails the purpose of funding redemptions. to meet its obligation. All non-derivative financial liabilities, other than redeemable units A Fund may be exposed to credit risk from the use of counterparties outstanding, are due in less than 3 months. for foreign exchange forward contracts. Where applicable, this risk is (d) Concentration Risk minimized by: Concentration risk arises as a result of the concentration of exposures (i) using counterparties with a minimum credit rating of A by within the same category, whether it is geographical location, security S&P Global Ratings (“S&PGR”) or an equivalent rating from type or industry sector. A Fund’s concentration risk is disclosed in the another recognized credit rating agency; Fund-Specific Notes. (ii) limiting the term of the foreign exchange forward contracts to a maximum of 365 days; and, (iii) limiting the mark-to-market exposure to any one counterparty to 10 percent of the portfolio value.
December 31, 2019 30 Annual Financial Statements nNotes to the Financial Statements
9. Capital Risk Management
Units issued and outstanding represent the capital of the Funds. The Funds do not have any specific capital requirements on the subscription and redemption of units, other than certain minimum subscription requirements. Changes in the Funds’ capital during the reporting periods are reflected in the Statements of Changes in Net Assets Attributable to Holders of Redeemable Units. TDAM is responsible for managing the capital of the Funds in accordance with each Fund’s investment objec- tives and for managing liquidity in order to meet redemption requests.
10. Comparative Financial Information
Where applicable, certain comparative figures in the Statements of Comprehensive Income have been reclassified. Amounts related to real- ized foreign exchange gains and losses on income have been reclassified from income into Foreign Exchange Gain (Loss) on Cash and Other Net Assets in the Statements of Comprehensive Income. Amounts related to unrealized foreign exchange gains and losses on other assets and liabil- ities have been reclassified from Net Change in Unrealized Appreciation/ Depreciation into Foreign Exchange Gain (Loss) on Cash and Other Net Assets. For these reclassifications, there was no impact on the Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units.
If applicable, the most recent financial statements of the Underlying Funds managed by TDAM are available, without charge, by writing to TD 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 at www.tdassetmanagement.com or the SEDAR website at www.sedar.com.
Currency codes used throughout the report:
Currency Currency Currency Code Description Code Description Code Description AED UAE Dirham HKD Hong Kong Dollar PHP Philippine Peso ARS Argentine Peso HUF Hungarian Forint PKR Pakistan Rupee AUD Australian Dollar IDR Indonesian Rupiah PLN Polish Zloty BRL Brazilian Real ILS Israeli Shekel QAR Qatari Riyal CAD/C$ Canadian Dollar INR Indian Rupee RON Romanian Leu CHF Swiss Franc JOD Jordanian Dinar RUB Russian Ruble CLP Chilean Peso JPY Japanese Yen SEK Swedish Krona CNY/CNH China Renminbi KRW South Korean Won SGD Singapore Dollar COP Colombian Peso LKR Sri Lanka Rupee THB Thai Baht CZK Czech Koruna MAD Moroccan Dirham TRY Turkish Lira DKK Danish Krone MXN Mexican Peso TWD New Taiwan Dollar EGP Egyptian Pound MYR Malaysian Ringgit USD/US$ United States Dollar EUR Euro NOK Norwegian Krone ZAR South African Rand GBP British Pound NZD New Zealand Dollar
December 31, 2019 31 Annual Financial Statements Source: London Stock Exchange Group plc and its group undertakings (collectively, the “LSE Group”). © LSE Group 2019. FTSE Russell is a trading name of certain of the LSE Group companies. “FTSE®”, “Russell®”, and “FTSE Russell®” are trade marks of the relevant LSE Group companies and are used by any other LSE Group company under license. All rights in the FTSE Russell indexes or data vest in the relevant LSE Group company which owns the index or the data. Neither LSE Group nor its licensors accept any liability for any errors or omissions in the indexes or data and no party may rely on any indexes or data contained in this communication. No further distribution of data from the LSE Group is permitted without the relevant LSE Group company’s express written consent. The LSE Group does not promote, sponsor or endorse the content of this communication.
TD Mutual Funds, TD Pools and the TD Managed Assets Program portfolios are managed by TD Asset Management Inc., a wholly-owned subsidiary of The Toronto-Dominion Bank and are available through authorized dealers. TD Exchange-Traded Funds are managed by TD Asset Management Inc., a wholly-owned subsidiary of The Toronto-Dominion Bank. TDAM USA Inc. and Epoch Investment Partners Inc. are affiliates of TD Asset Management Inc. TD Asset Management operates through TD Asset Management Inc. in Canada and through TDAM USA Inc. in the United States. All entities are affiliates and wholly-owned subsidiaries of The Toronto-Dominion Bank. All trademarks are the property of their respective owners. ® The TD logo and other trademarks are the property of The Toronto-Dominion Bank or its subsidiaries.
December 31, 2019 32 Annual Financial Statements