TD Mutual Funds Semi-Annual Financial Report

for the period ended June 30, 2011 TD Mutual Funds Semi-Annual Financial Report 2011 Semi Annual Financial Report TD Mutual Funds TD Mutual Funds Semi-Annual Financial Report 2 Management’s Responsibility GLOBALEQUITYFUNDS for Financial Reporting 182 TD Global Dividend Fund 187 TDGlobalValueFund Financial Statements 191 TDGlobalGrowthFund 196 TD Global Equity Portfolio MONEYMARKETFUNDS 199 TD Global Multi-Cap Fund 3 TDCanadianT-BillFund 204 TD Global Sustainability Fund 5 TD Canadian Money Market Fund 209 TD International Value Fund 10 TD Premium Money Market Fund 215 TD International Growth Fund 15 TDU.S.MoneyMarketFund 219 TD European Growth Fund 223 TD Japanese Growth Fund FIXEDINCOMEFUNDS 227 TDAsianGrowthFund 19 TD Ultra Short Term Bond Fund 231 TDPacificRimFund 23 TDShortTermBondFund 234 TD Emerging Markets Fund 29 TDMortgageFund 240 TD Latin American Growth Fund 33 TDCanadianBondFund 40 TD Income Advantage Portfolio SECTORFUNDS 44 TD Canadian Core Plus Bond Fund 244 TDResourceFund 52 TD Corporate Bond Capital Yield Fund 250 TDEnergyFund 57 TDRealReturnBondFund 255 TD Precious Metals Fund 60 TDGlobalBondFund 260 TD Entertainment & Communications Fund 66 TDHighYieldBondFund 264 TD Science & Technology Fund 269 TD Health Sciences Fund BALANCEDFUNDS 77 TDMonthlyIncomeFund INDEXFUNDS 86 TD Balanced Income Fund 275 TD Canadian Bond Index Fund 92 TD Diversified Monthly Income Fund 288 TD Balanced Index Fund 101 TD Balanced Growth Fund 290 TD Canadian Index Fund 109 TD Dividend Income Fund 295 TD Dow Jones Industrial AverageSM Index Fund 299 TDU.S.IndexFund CANADIANEQUITYFUNDS 307 TD U.S. Index Currency Neutral Fund 119 TD Dividend Growth Fund 311 TDNasdaq® Index Fund 124 TD Canadian Blue Chip Equity Fund 316 TD International Index Fund 128 TD Canadian Equity Fund 328 TD International Index Currency Neutral Fund 133 TD Canadian Value Fund 332 TD European Index Fund 138 TD Canadian Small-Cap Equity Fund 340 TD Japanese Index Fund U.S.EQUITYFUNDS 142 TD North American Dividend Fund 347 Notes to Financial Statements 146 TD U.S. Blue Chip Equity Fund 151 TD U.S. Quantitative Equity Fund 156 TD U.S. Large-Cap Value Fund 160 TD U.S. Large-Cap Value Currency Neutral Fund 164 TD U.S. Equity Portfolio 167 TD U.S. Equity Currency Neutral Portfolio 171 TD U.S. Mid-Cap Growth Fund 176 TD U.S. Small-Cap Equity Fund 2011 Semi-Annual Financial Report TD Mutual Funds 1 Management’s Responsibility for Financial Reporting The accompanying unaudited interim financial statements have been prepared by TD Asset Management Inc. as Manager of the Funds. 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 Canadian generally accepted accounting principles. 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 information is produced and the safeguarding of all assets of the Funds. The Board of Directors of TD Asset Management Inc. is responsible for reviewing and approving the financial statements and overseeing management’s performance of its financial reporting responsibilities. On behalf of TD Asset Management Inc., Manager of the Funds Thomas J. Dyck Francesca Shaw Director and President, Director and TD Mutual Funds Chief Financial Officer August 11, 2011 August 11, 2011 Notice to Unitholders The Auditors of the Funds have not reviewed these Financial Statements TD Asset Management Inc., the Manager of the Funds, appoints an independent auditor to audit the Funds’ annual financial statements. Applicable securities laws require that if an auditor has not reviewed the Funds’ interim financial statements, this must be disclosed in an accompanying notice. 2 TD Mutual Funds 2011 Semi-Annual Financial Report MONEYMARKETFUNDS TD Canadian T-Bill Fund Statements of Net Assets (in 000s except per unit amounts and number of units) Statements of Changes in Net Assets (in 000s except number of units) as at June 30, 2011 and December 31, 2010 (Unaudited) for the periods ended June 30, 2011 and 2010 (Unaudited) 2011 2010 Investor Series Assets 2011 2010 Short-Term Investments $ 149,662 $ 167,020 Net Assets, Beginning of the Period $ 212,638 $ 270,951 Reverse Repurchase Agreement (Note 3) 42,063 45,869 Increase (Decrease) in Net Assets Cash 111 129 from Investment Operations 366 73 Interest Receivable 31 39 Subscriptions Receivable 205 403 Capital Unit Transactions† Proceeds from Sale of Units 56,233 63,448 192,072 213,460 Reinvestments of Distributions 360 72 Liabilities Amounts Paid on Redemptions (77,493) (97,909) Accrued Liabilities 104 117 (20,900) (34,389) Redemptions Payable 227 702 Distributions Payable 33Distributions to Unitholders (366) (73) 334 822 Increase (Decrease) in Net Assets for the Period (20,900) (34,389) Net Assets (Note 3) $ 191,738 $ 212,638 Net Assets, End of the Period $ 191,738 $ 236,562 Net Assets Representing Unitholders’ Equity (Note 4) †Capital Unit Transactions Investor Series $ 191,738 $ 212,638 UnitsOutstanding,BeginningofthePeriod 21,263,801 27,095,076 Number of Units Outstanding Units Issued 5,623,348 6,344,854 Investor Series 19,173,805 21,263,801 Units Issued on Reinvestments 35,955 7,187 Net Assets Per Unit (Note 3) Units Redeemed (7,749,299) (9,790,872) Investor Series $ 10.00 $ 10.00 Units Outstanding, End of the Period 19,173,805 23,656,245 Statements of Investment Operations (in 000s except per unit amounts) for the periods ended June 30, 2011 and 2010 (Unaudited) 2011 2010 Investment Income Interest $ 829 $ 314 Income from Reverse Repurchase Agreement 200 52 Securities Lending 9 10 1,038 376 Expenses (Note 5) Management Fees 982 1,167 Independent Review Committee Fees 11 983 1,168 Less: Waived Expenses (311) (865) 672 303 Net Investment Income (Loss) 366 73 Increase (Decrease) in Net Assets from Investment Operations† $ 366 $ 73 †Increase (Decrease) in Net Assets from Investment Operations Investor Series $ 366 $ 73 Increase (Decrease) in Net Assets from Investment Operations – Per Unit (Note 3) Investor Series $ 0.02 $ 0.00 The accompanying notes are an integral part of these financial statements. 2011 Semi-Annual Financial Report TD Mutual Funds 3 MONEYMARKETFUNDS TD Canadian T-Bill Fund Statement of Investment Portfolio as at June 30, 2011 (Unaudited) Credit Risk (Note 11) The table below summarizes the debt instruments by credit ratings as at June 30, 2011 and Par Value Description Cost FairValue December 31, 2010. Short-Term Investments – 100.0% Percentage of Total Percentage of Debt Instruments (%) Total Net Assets (%) FEDERAL – 53.7% Credit Rating° 2011 2010 2011 2010 Government of Canada Reverse Repurchase Agreement R-1 High 74.70 74.84 74.69 74.93 dated June 30, 2011 R-1 Mid 25.30 25.16 25.30 25.19 $ 42,500,000 0.98% due July 04, 2011 $ 42,062,733 $ 42,062,733 Total 100.00 100.00 99.99 100.12 Government of Canada Treasury Bill ° Credit ratings are obtained from Standard & Poor’s, Moody’s or DBRS rating agencies. 10,000,000 0.91% due July 07, 2011 9,998,498 9,998,498 10,000,000 0.92% due July 21, 2011 9,994,976 9,994,976 Financial Instruments by the Level in the Fair Value Hierarchy 7,000,000 0.97% due August 04, 2011 6,993,689 6,993,689 (in 000s) (Note 11) 7,000,000 1.00% due August 18, 2011 6,990,827 6,990,827 The table below illustrates the classification of the Fund’s financial instruments within the 5,000,000 1.00% due September 01, 2011 4,991,503 4,991,503 fair value hierarchy as at June 30, 2011 and December 31, 2010: 5,000,000 0.94% due September 15, 2011 4,990,229 4,990,229 9,000,000 0.88% due September 29, 2011 8,980,411 8,980,411 Level1 Level2 Level3 Total 2,000,000 1.12% due October 13, 2011 1,993,649 1,993,649 June 30, 2011 2,000,000 1.41% due November 24, 2011 1,988,914 1,988,914 Short-Term Investments 3,000,000 1.42% due February 16, 2012 2,973,517 2,973,517 and Reverse Repurchase 1,000,000 1.40% due March 15, 2012 990,234 990,234 Agreement $0$191,725 $0$191,725 102,949,180 102,949,180 PROVINCIAL & GUARANTEES – 38.8% December 31, 2010 Financement-Quebec Short-Term Investments 5,000,000 FloatingRatedueOctober25,2011 5,000,665 5,000,665 and Reverse Repurchase Agreement $0$212,889 $0$212,889 Province of Alberta 4,000,000 1.04% due July 28, 2011 3,996,927 3,996,927 During the periods, transfers between Level 1 and Level 2 were nil. 5,000,000 1.05% due August 25, 2011 4,992,106 4,992,106 Province of British Columbia Contractual Maturities Analysis for Financial Liabilities (in 000s) (Note 11) 5,000,000 1.01% due July 08, 2011 4,999,032 4,999,032 The table below summarizes cash flows associated with the maturities of the Fund’s financial 5,000,000 1.03% due July 13, 2011 4,998,314 4,998,314 liabilities as at June 30, 2011 and December 31, 2010: 5,000,000 1.05% due July 29, 2011 4,995,989 4,995,989 Less than 2,000,000 1.08% due November 18, 2011 1,991,752 1,991,752 3 months Province of Manitoba Treasury Bill 2011 2010 2,100,000 1.02% due July 27, 2011 2,098,471 2,098,471 Accounts payable and other liabilities $ 334 $ 822 12,500,000 1.04% due August 17, 2011 12,483,311 12,483,311 2,900,000 1.03% due September 07, 2011 2,894,443 2,894,443 Province of Ontario 2,000,000 FloatingRatedueNovember10,2011 2,005,744 2,005,744 3,000,000 4.40% due December 02, 2011 3,036,460 3,036,460 Province of Ontario Treasury Bill 3,000,000 1.03% due July 13, 2011 2,998,986 2,998,986 3,000,000 1.06% due August 17, 2011 2,995,921 2,995,921 2,000,000 1.14% due August 31, 2011 1,996,211 1,996,211 2,000,000 1.27% due September 07, 2011 1,995,300 1,995,300 Province of Quebec Treasury Bill 8,000,000 1.05% due July 08, 2011 7,998,392 7,998,392 3,000,000 1.04% due July 22, 2011 2,998,208 2,998,208 74,476,232 74,476,232 CORPORATE – 7.5% Bank of Montreal 14,300,000 1.00% due July 04, 2011 14,300,000 14,300,000 TOTAL INVESTMENT PORTFOLIO – 100.0% 191,725,412 191,725,412 OTHER NET ASSETS – 0.0% 12,633 12,633 TOTAL NET ASSETS – 100.0% $ 191,738,045 $ 191,738,045 4 TD Mutual Funds 2011 Semi-Annual Financial Report The accompanying notes are an integral part of these financial statements.

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