TD International Index Fund

532212 (03/18)

TD Mutual Funds Annual Financial Statements for the period ended December 31, 2017 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 (“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 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 David Lambie Director and Director and Chief Executive Officer Chief Financial Officer March 16, 2018 March 16, 2018

December 31, 2017 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 International Stock Fund TD Global Equity Pool TD Short Term Bond Fund TD Emerging Markets Low Volatility Fund TD Tactical Pool TD Canadian Bond Fund TD Asian Growth Fund TD Managed Income Portfolio TD Income Advantage Portfolio TD Emerging Markets Fund TD Managed Income & Moderate TD Canadian Core Plus Bond Fund Epoch U.S. Shareholder Yield Fund Growth Portfolio TD Canadian Corporate Bond Fund Epoch U.S. Blue Chip Equity Fund TD Managed Balanced Growth Portfolio TD Corporate Bond Plus Fund Epoch U.S. Blue Chip Equity TD Managed Aggressive Growth Portfolio TD U.S. Corporate Bond Fund Currency Neutral Fund TD Managed Maximum Equity TD Real Return Bond Fund Epoch U.S. Large-Cap Value Fund Growth Portfolio TD Global Income Fund Epoch Global Shareholder Yield Fund TD FundSmart Managed Income TD Global Core Plus Bond Fund Epoch Global Shareholder Yield & Moderate Growth Portfolio TD Global Unconstrained Bond Fund Currency Neutral Fund TD FundSmart Managed TD High Yield Bond Fund Epoch Global Equity Fund Balanced Growth Portfolio TD Global Conservative Opportunities Fund Epoch International Equity Fund TD FundSmart Managed TD Global Balanced Opportunities Fund Epoch European Equity Fund Aggressive Growth Portfolio TD Monthly Income Fund TD Resource Fund TD Managed Index Income Portfolio TD Tactical Monthly Income Fund TD Precious Metals Fund TD Managed Index Income TD U.S. Monthly Income Fund TD Entertainment & Communications Fund & Moderate Growth Portfolio TD U.S. Monthly Income Fund – C$ TD Science & Technology Fund TD Managed Index Balanced TD Balanced Income Fund TD Health Sciences Fund Growth Portfolio TD Diversified Monthly Income Fund TD Canadian Bond Index Fund TD Managed Index Aggressive TD Strategic Yield Fund TD Balanced Index Fund Growth Portfolio TD Balanced Growth Fund TD Canadian Index Fund TD Managed Index Maximum Equity TD Dividend Income Fund TD Dow Jones Industrial Average Index Fund Growth Portfolio TD Canadian Diversified Yield Fund TD U.S. Index Fund TD Managed Income ETF Portfolio TD Canadian Low Volatility Fund TD U.S. Index Currency Neutral Fund TD Managed Income & Moderate Growth TD Dividend Growth Fund TD Nasdaq® Index Fund ETF Portfolio TD Canadian Blue Chip Dividend Fund TD International Index Fund TD Managed Balanced Growth ETF Portfolio TD Canadian Large-Cap Equity Fund TD International Index TD Managed Aggressive Growth ETF Portfolio TD Canadian Equity Fund Currency Neutral Fund TD Managed Maximum Equity Growth TD Core Canadian Value Fund TD European Index Fund ETF Portfolio TD Canadian Value Fund TD US$ Retirement Portfolio (collectively, the “Funds”) TD Canadian Small-Cap Equity Fund TD Retirement Conservative Portfolio TD U.S. Risk Managed Equity Fund TD Retirement Balanced Portfolio TD U.S. Low Volatility Fund TD Advantage Balanced Income Portfolio TD U.S. Low Volatility Currency Neutral Fund TD Advantage Balanced Portfolio TD North American Dividend Fund TD Advantage Balanced Growth Portfolio TD U.S. Dividend Growth Fund TD Advantage Growth Portfolio TD U.S. Blue Chip Equity Fund TD Advantage Aggressive 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, 2017 2 Annual Financial Statements nIndependent Auditor’s Report We have audited the accompanying financial statements of each of the An audit involves performing procedures to obtain audit evidence about Funds, which comprise the statements of financial position, comprehensive the amounts and disclosures in the financial statements. The procedures income, changes in net assets attributable to holders of redeemable units selected depend on the auditor’s judgment, including the assessment and cash flows as at and for the periods indicated in note 1, and the of the risks of material misstatement of the financial statements, whether related notes, which comprise a summary of significant accounting policies due to fraud or error. In making those risk assessments, the auditor and other explanatory information. considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit pro - Management’s responsibility for the financial statements cedures that are appropriate in the circumstances, but not for the purpose Management is responsible for the preparation and fair presentation of expressing an opinion on the effectiveness of the entity’s internal of the financial statements of each of the Funds in accordance with control. An audit also includes evaluating the appropriateness of account - Inter national Financial Reporting Standards, and for such internal control ing policies used and the reasonableness of accounting estimates made as management determines is necessary to enable the preparation of by management, as well as evaluating the overall presentation of the financial statements that are free from material misstatement, whether financial statements. due to fraud or error. We believe that the audit evidence we have obtained in each of our audits Auditor’s responsibility is sufficient and appropriate to provide a basis for our audit opinion. Our responsibility is to express an opinion on the financial statements of each of the Funds based on our audits. We conducted our audits in Opinion accordance with Canadian generally accepted auditing standards. Those In our opinion, the financial statements of each of the Funds present standards require that we comply with ethical requirements and plan fairly, in all material respects, the financial position, financial performance and perform the audit to obtain reasonable assurance about whether the and cash flows of each of the Funds as at and for the periods indicated financial statements are free from material misstatement. in note 1 in accordance with Inter national Financial Reporting Standards.

Chartered Professional Accountants, Licensed Public Accountants Toronto, Ontario March 16, 2018

December 31, 2017 3 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, 2017 and 2016 for the periods ended December 31, 2017 and 2016 2017 2016 2017 2016 Assets Income Current Assets Foreign Exchange Gain (Loss) on Cash $ (18) $ (92) Investments $ 685,908 $ 527,324 Securities Lending Income 308 275 Cash 1,228 1,030 Net Gain (Loss) on Investments and Derivatives Dividends Receivable 680 526 Net Gain (Loss) on Investments Subscriptions Receivable 3,725 2,736 Interest for Distribution Purposes 6 4 Receivable for Investments Sold 0 231 Dividend Income 21,193 16,981 Derivative Assets Net Realized Gain (Loss) 2,377 (38) Unrealized Appreciation on Open Net Change in Unrealized Appreciation/ Foreign Exchange Forward Contracts 5 0 Depreciation 74,109 (22,148) Rights 25 0 Net Gain (Loss) on Investments 97,685 (5,201) 691,571 531,847 Net Gain (Loss) on Derivatives Net Realized Gain (Loss) 454 54 Liabilities Net Change in Unrealized Appreciation/ Current Liabilities Redemptions Payable 1,138 1,787 Depreciation 5 (22) Payable for Investments Purchased 2,401 1,317 Net Gain (Loss) on Derivatives 459 32 Derivative Liabilities Total Net Gain (Loss) on Investments Unrealized Depreciation on Open and Derivatives 98,144 (5,169) Foreign Exchange Forward Contracts 0 2 Total Income (Net) 98,434 (4,986) 3,539 3,106 Expenses (Note 6) Net Assets Attributable to Holders Management Fees 2,636 2,046 of Redeemable Units $ 688,032 $ 528,741 Independent Review Committee Fees 2 2 Net Assets Attributable to Holders Transaction Costs 188 145 of Redeemable Units – Per Series (Note 5) Interest Charges 1 5 Investor Series $ 56,859 $ 44,290 Total Expenses before Waivers 2,827 2,198 e-Series $ 457,975 $ 340,951 Less: Waived Expenses (2) (4) Institutional Series $ 11,781 $ 9,432 Total Expenses (Net) 2,825 2,194 F-Series $ 10,069 $ 6,495 O-Series $ 151,348 $ 127,573 Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units before Tax 95,609 (7,180) $ 688,032 $ 528,741 Tax Reclaims (Withholding Taxes) (2,221) (2,097) Net Assets Attributable to Holders of Redeemable Units – Increase (Decrease) in Net Assets Attributable Per Series Unit to Holders of Redeemable Units $ 93,388 $ (9,277) Investor Series $ 13.57 $ 11.94 e-Series $ 13.98 $ 12.30 Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units – Per Series Institutional Series $ 18.15 $ 15.97 Investor Series $ 7,393 $ (1,343) F-Series $ 10.50 $ 9.23 e-Series $ 61,133 $ (5,509) O-Series $ 12.71 $ 11.19 Institutional Series $ 1,626 $ (197) F-Series $ 1,293 $ (116) O-Series $ 21,943 $ (2,112) $ 93,388 $ (9,277)

Weighted Average Units Outstanding for the Period – Per Series Investor Series 3,912 3,736 e-Series 30,554 25,791 Institutional Series 621 549 F-Series 863 671 O-Series 11,397 11,024

Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units – Per Series Unit Investor Series $ 1.89 $ (0.36) e-Series $ 2.00 $ (0.21) Institutional Series $ 2.62 $ (0.36) F-Series $ 1.50 $ (0.17) O-Series $ 1.93 $ (0.19)

The accompanying notes are an integral part of the financial statements.

December 31, 2017 4 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, 2017 and 2016 Investor Series e-Series Institutional Series

2017 2016 2017 2016 2017 2016 Net Assets Attributable to Holders of Redeemable Units at Beginning of the Period $ 44,290 $ 45,137 $ 340,951 $ 302,878 $ 9,432 $ 8,769 Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units 7,393 (1,343) 61,133 (5,509) 1,626 (197) Distributions to Holders of Redeemable Units From Net Investment Income (1,093) (893) (10,862) (7,833) (284) (214) From Net Realized Gains on Investments 0 0 0 0 0 0 (1,093) (893) (10,862) (7,833) (284) (214) Redeemable Unit Transactions Proceeds from Redeemable Units Issued 15,221 10,303 114,092 86,614 1,951 1,861 Reinvestments of Distributions to Holders of Redeemable Units 1,078 882 10,419 7,490 284 214 Early Redemption Fees on Redeemable Units 0 1 4 4 0 0 Redemption of Redeemable Units (10,030) (9,797) (57,762) (42,693) (1,228) (1,001) Net Increase (Decrease) from Redeemable Unit Transactions 6,269 1,389 66,753 51,415 1,007 1,074 Net Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units 12,569 (847) 117,024 38,073 2,349 663 Net Assets Attributable to Holders of Redeemable Units at End of the Period $ 56,859 $ 44,290 $ 457,975 $ 340,951 $ 11,781 $ 9,432 Redeemable Unit Transactions Redeemable Units Outstanding, Beginning of the Period 3,710 3,588 27,721 23,376 591 521 Redeemable Units Issued 1,175 890 8,594 7,278 113 121 Redeemable Units Issued on Reinvestments 83 78 775 637 16 14 Redeemable Units Redeemed (778) (846) (4,338) (3,570) (71) (65) Redeemable Units Outstanding, End of the Period 4,190 3,710 32,752 27,721 649 591

F-Series O-Series TOTAL

2017 2016 2017 2016 2017 2016 Net Assets Attributable to Holders of Redeemable Units at Beginning of the Period $ 6,495 $ 5,989 $ 127,573 $ 124,247 $ 528,741 $ 487,020 Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units 1,293 (116) 21,943 (2,112) 93,388 (9,277) Distributions to Holders of Redeemable Units From Net Investment Income (225) (149) (4,357) (3,668) (16,821) (12,757) From Net Realized Gains on Investments 0 0 0 0 0 0 (225) (149) (4,357) (3,668) (16,821) (12,757) Redeemable Unit Transactions Proceeds from Redeemable Units Issued 3,707 1,672 29,051 36,530 164,022 136,980 Reinvestments of Distributions to Holders of Redeemable Units 219 143 4,357 3,668 16,357 12,397 Early Redemption Fees on Redeemable Units 0 0 2 1 6 6 Redemption of Redeemable Units (1,420) (1,044) (27,221) (31,093) (97,661) (85,628) Net Increase (Decrease) from Redeemable Unit Transactions 2,506 771 6,189 9,106 82,724 63,755 Net Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units 3,574 506 23,775 3,326 159,291 41,721 Net Assets Attributable to Holders of Redeemable Units at End of the Period $ 10,069 $ 6,495 $ 151,348 $ 127,573 $ 688,032 $ 528,741 Redeemable Unit Transactions Redeemable Units Outstanding, Beginning of the Period 704 616 11,401 10,538 Redeemable Units Issued 376 188 2,389 3,379 Redeemable Units Issued on Reinvestments 22 16 356 343 Redeemable Units Redeemed (143) (116) (2,243) (2,859) Redeemable Units Outstanding, End of the Period 959 704 11,903 11,401

The accompanying notes are an integral part of the financial statements.

December 31, 2017 5 Annual Financial Statements nTD International Index Fund Statements of Cash Flows (in 000s) for the periods ended December 31, 2017 and 2016 2017 2016 Cash Flows from (used in) Operating Activities Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units $ 93,388 $ (9,277) Adjustment For: Unrealized Foreign Exchange (Gain) Loss on Cash 2 3 Net Realized (Gain) Loss on Sale of Investments and Derivatives (2,831) (16) Net Change in Unrealized Appreciation/ Depreciation of Investments and Derivatives (74,114) 22,170 Purchase of Investments (173,957) (140,754) Proceeds from Sale and/or Maturity of Investments 93,601 77,067 (Increase) Decrease in Dividends Receivable (154) (64) Increase (Decrease) in Accrued Liabilities 0 (170) Net Cash from (used in) Operating Activities (64,065) (51,041) Cash Flows from (used in) Financing Activities Distributions Paid to Holders of Redeemable Units, Net of Reinvested Distributions (464) (360) Proceeds from Issuances of Redeemable Units 160,110 134,500 Amounts Paid on Redemption of Redeemable Units, Net of Early Redemption Fees (95,381) (83,472) Net Cash from (used in) Financing Activities 64,265 50,668 Unrealized Foreign Exchange Gain (Loss) on Cash (2) (3) Net Increase (Decrease) in Cash 200 (373) Cash (Bank Overdraft) at Beginning of the Period 1,030 1,406 Cash (Bank Overdraft) at End of the Period $ 1,228 $ 1,030

Interest for Distribution Purposes Received*, Net of Withholding Taxes $ 6 $ 4 Dividends Received*, Net of Withholding Taxes $ 18,824 $ 14,834 * Included as part of Cash Flows from (used in) Operating Activities.

The accompanying notes are an integral part of the financial statements.

December 31, 2017 6 Annual Financial Statements No. of Shares TD International Index Fund or Units/ n Par Value Description Cost Fair Value Schedule of Investment Portfolio (in 000s except number of Shares 48,860 QBE Insurance Group Ltd. $ 800 $ 512 or Units/Par Value) as at December 31, 2017 4,996 Ramsay Health Care Limited 188 344 No. of Shares 1,883 REA Group Limited 83 142 or Units/ 66,041 Santos Limited 461 353 Par Value Description Cost Fair Value 189,602 Scentre Group 654 779 11,838 Seek Limited 150 221 U.S. Equities – 0.4% 14,183 Sonic Healthcare Limited 219 318 CONSUMER DISCRETIONARY – 0.1% 186,858 South32 Ltd. 371 640 6,630 Carnival PLC $ 358 $ 550 85,373 Stockland 375 375 46,034 Suncorp Group Ltd. 564 626 HEALTH CARE – 0.3% 38,694 Sydney Airport 175 268 32,339 Shire PLC 1,880 2,141 67,977 Tabcorp Holdings Limited 421 372 Total U.S. Equities 2,238 2,691 148,235 Telstra Corporation Limited 640 528 12,374 TPG Telecom Ltd. 91 80 International Equities – 97.5% 79,118 Transurban Group 658 965 AUSTRALIA – 6.8% 26,286 Treasury Wine Estates Ltd. 181 411 23,588 AGL Energy Ltd. 375 564 119,825 Vicinity Centres 303 320 84,131 Alumina Ltd. 214 200 40,377 Wesfarmers Limited 1,397 1,759 41,243 Amcor Limited 384 624 70,303 Westfield Corporation 602 654 103,813 AMP Limited 624 528 120,876 Westpac Banking Corporation 3,181 3,717 39,111 APA Group 277 320 30,001 Woodside Petroleum Ltd. 1,040 973 19,138 Aristocrat Leisure Ltd. 179 445 46,096 Woolworths Group Ltd 1,143 1,234 6,842 ASX Limited 250 368 39,049 46,962 72,014 Aurizon Holdings Limited 277 350 64,615 AusNet Services 75 114 AUSTRIA – 0.3% 2,593 Andritz AG 160 184 104,604 Australia and New Zealand 10,714 Erste Group Bank AG 506 583 Banking Group Limited 2,618 2,948 5,170 OMV AG 274 412 13,786 Bank of Queensland Limited 164 172 5,241 Raiffeisen Bank International AG 284 239 17,002 Bendigo and Adelaide Bank Limited 193 195 4,082 Voestalpine AG 219 307 169,000 BGP NPV 0 0 114,371 BHP Billiton Limited 2,995 3,317 1,443 1,725 75,213 BHP Billiton PLC 1,781 1,943 BELGIUM – 1.1% 20,169 BlueScope Steel Limited 233 304 6,875 Ageas SA/NV 1,291 422 41,748 Boral Ltd. 237 319 27,134 Anheuser-Busch InBev NV 2,339 3,811 56,603 Brambles Limited 569 559 2,322 Colruyt SA 120 152 9,288 Caltex Australia Limited 259 310 2,850 Groupe Bruxelles Lambert SA 333 387 20,647 Challenger Ltd. 184 284 8,934 KBC Group NV 716 958 3,345 CIMIC Group Ltd. 79 169 5,346 Proximus SADP 238 221 20,101 Coca-Cola Amatil Ltd. 175 168 2,604 Solvay SA, Class A 391 455 2,049 Cochlear Ltd. 156 344 1,857 Telenet Group Holding NV 97 163 61,677 Commonwealth Bank of Australia 3,645 4,860 4,467 UCB SA 372 446 16,537 Computershare Limited 167 264 6,781 Umicore SA 171 403 13,476 Crown Resorts Ltd. 163 172 6,068 7,418 16,114 CSL Limited 829 2,233 35,695 Dexus 239 341 CHILE – 0.0% 2,216 Domino’s Pizza Enterprises Ltd. 140 101 14,043 Antofagasta PLC 196 239 1,959 Flight Centre Travel Group Limited 67 85 55,443 Fortescue Metals Group Limited 217 265 CHINA – 0.0% 28,000 Minth Group Limited 202 212 64,127 Goodman Group 296 530 77,400 Yangzijiang Shipbuilding (Holdings) Ltd. 77 107 64,158 The GPT Group 322 322 19,985 Harvey Norman Holdings Ltd. 76 82 279 319 59,634 Healthscope Ltd. 147 123 59,218 Incitec Pivot Limited 262 226 84,310 Insurance Australia Group Limited 434 599 19,440 LendLease Group 251 312 11,515 Macquarie Group Limited 742 1,125 98,072 Medibank Private Limited 223 316 132,147 Mirvac Group 259 305 95,632 National Australia Bank Limited 2,796 2,773 27,318 Newcrest Mining Limited 628 611 48,832 Oil Search Limited 374 373 13,427 Orica Limited 270 238 61,697 Origin Energy Limited 507 570

December 31, 2017 7 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

DENMARK – 1.8% 1,545 Eurazeo SA $ 129 $ 179 135 A.P. Moller – Maersk AS, Class A $ 315 $ 283 6,003 Eutelsat Communications SA 207 175 230 A.P. Moller – Maersk AS, Class B 488 505 2,800 Faurecia 277 275 3,810 Carlsberg AS, Class B 395 575 1,143 Fonciere Des Regions 109 163 3,522 Chr Hansen Holding AS 299 415 1,679 Gecina SA 284 390 4,182 Coloplast AS 233 418 16,648 Groupe Eurotunnel SE 201 269 26,689 Danske Bank AS 972 1,306 1,128 Hermes International 543 759 6,767 DSV AS 237 670 1,177 ICADE 141 145 2,069 Genmab AS 384 431 942 Iliad SA 189 284 2,400 H Lundbeck AS 173 153 1,276 Imerys 120 151 5,951 ISS AS 240 290 2,110 Ingenico Group SA 323 283 66,394 Novo Nordisk AS, Class B 2,209 4,499 1,300 Ipsen SA 222 195 8,095 Novozymes AS, Class B 271 582 2,558 JCDecaux SA 104 130 6,737 Orsted AS 360 462 2,699 Kering 596 1,600 3,904 Pandora AS 403 534 7,771 Klepierre SA 417 430 28,916 TDC AS 237 224 4,143 Lagardere SCA 262 167 4,002 Tryg AS 80 126 9,474 Legrand SA 500 917 7,776 Vestas Wind Systems AS 524 676 8,973 L’Oreal SA 1,478 2,503 4,227 William Demant Holding AS 87 149 9,930 LVMH Moet Hennessy Louis Vuitton SE 1,747 3,675 7,907 12,298 33,518 Natixis SA 259 333 71,045 Orange SA 1,781 1,551 FINLAND – 0.9% 7,562 Pernod Ricard SA 891 1,505 5,066 Elisa Oyj, Class A 163 250 20,945 Peugeot SA 428 536 15,818 Fortum Oyj 428 394 7,382 Publicis Groupe SA 517 631 12,042 Kone Oyj, Class B 419 813 797 Remy Cointreau SA 83 139 3,959 Metso Oyj 181 170 6,846 Renault SA 765 866 4,566 Neste Oyj 167 367 10,803 Rexel SA 242 246 207,834 Nokia Oyj 2,832 1,221 11,881 Safran SA 794 1,539 4,095 Nokian Renkaat Oyj 140 233 40,462 Sanofi 4,143 4,385 3,709 Orion Oyj 128 174 20,185 Schneider Electric SE 1,517 2,157 15,920 Sampo Oyj 675 1,100 6,065 SCOR SE 217 307 19,620 Stora Enso Oyj 284 391 800 SEB SA 145 186 19,007 UPM-Kymmene Oyj 466 743 1,010 Societe BIC SA 120 140 5,202 Wartsila Oyj, Class B 227 413 27,326 Societe Generale SA 2,316 1,774 6,110 6,269 3,238 Sodexo 302 547 12,918 SUEZ 180 286 FRANCE – 10.1% 2,100 Teleperformance SA 402 378 6,685 Accor SA 441 434 3,716 Thales SA 270 504 1,058 Aeroports de Paris 143 253 84,600 TOTAL SA 5,906 5,875 15,208 Air Liquide SA 1,662 2,410 2,300 Ubisoft Entertainment SA 228 222 20,685 Airbus Group SE 1,232 2,589 3,557 Unibail-Rodamco SE 900 1,127 5,489 Alstom SA 343 286 8,535 Valeo SA 435 802 2,200 Amundi SA 254 234 17,053 Veolia Environnement 627 547 2,427 Arkema SA 264 372 17,970 Vinci SA 1,364 2,308 3,372 Atos SE 349 617 36,793 Vivendi SA 1,323 1,244 69,064 AXA SA 2,349 2,576 992 Wendel SA 129 216 1,500 BioMerieux 162 169 7,179 Zodiac Aerospace 200 270 40,012 BNP Paribas SA 3,581 3,757 30,835 Bollore SA 199 211 56,924 69,710 7,637 Bouygues SA 435 499 GERMANY – 9.6% 9,444 Bureau Veritas SA 218 325 6,706 AG 692 1,691 5,723 Capgemini SE 534 854 16,041 Allianz SE 3,297 4,633 20,691 Carrefour SA 1,056 563 1,730 Axel Springer SE 107 170 1,977 Casino Guichard-Perrachon SA 189 151 32,708 BASF SE 2,670 4,526 17,958 Cie de Saint-Gobain 1,133 1,245 29,449 Bayer AG 3,086 4,619 6,127 Cie Generale des Etablissements Michelin 657 1,105 13,754 Bayerische Motoren Werke AG 1,170 1,765 6,025 CNP Assurances 157 175 3,590 Beiersdorf AG 324 530 40,541 Credit Agricole SA 962 844 5,423 Brenntag AG 266 432 21,497 Danone SA 1,730 2,268 37,908 Commerzbank AG 1,090 715 100 Dassault Aviation SA 147 196 3,918 Continental AG 612 1,330 4,615 Dassault Systemes SE 282 617 4,327 Covestro AG 346 561 7,792 Edenred 205 284 34,288 Daimler AG 2,761 3,661 2,580 Eiffage SA 267 355 73,600 Deutsche Bank AG 3,370 1,762 20,565 Electricite de France SA 697 323 6,873 Deutsche Boerse AG 760 1,003 65,042 ENGIE SA 2,213 1,406 7,390 Essilor International SA 730 1,281

December 31, 2017 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

8,374 Deutsche Lufthansa AG $ 214 $ 388 27,300 Hang Seng Bank Limited $ 513 $ 852 34,575 Deutsche Post AG 1,223 2,073 42,763 Henderson Land Development 118,692 Deutsche Telekom AG 2,451 2,649 Company Ltd. 197 354 12,630 Deutsche Wohnen AG 368 695 94,400 HK Electric Investments & HK Electric 1,900 Drillisch AG 187 197 Investments Limited 103 109 78,383 E.ON SE 2,312 1,071 133,800 HKT Trust and HKT Ltd. 189 214 5,809 Evonik Industries AG 267 275 299,755 The Hong Kong and China 1,482 Fraport AG Frankfurt Airport Gas Company Limited 459 739 Services Worldwide 118 205 41,742 Hong Kong Exchanges 7,677 Fresenius Medical Care AG & Co. KGaA 573 1,016 and Clearing Limited 851 1,610 14,805 Fresenius SE & Co. KGaA 843 1,453 41,900 Hongkong Land Holdings Ltd. 369 371 2,440 SE 123 163 23,042 Hysan Development Company Limited 98 154 6,463 GEA Group AG 279 390 7,727 Jardine Matheson Holdings Limited 608 590 2,148 Hannover Ruck SE 191 340 7,900 Jardine Strategic Holdings Ltd. 395 393 5,300 HeidelbergCement AG 474 721 23,225 Kerry Properties Limited 114 131 3,701 Henkel AG & Co. KGaA 295 558 145,500 Kingston Financial Group Ltd. 231 176 6,345 Henkel AG & Co. KGaA, Pref. 587 1,056 207,600 Li & Fung Limited 305 143 700 HOCHTIEF AG 116 156 78,751 Link Real Estate Investment Trust 373 918 2,193 HUGO BOSS AG 279 235 8,700 Melco Resorts & Entertainment 40,448 Infineon Technologies AG 478 1,393 Limited, ADR 208 318 4,946 Innogy SE 268 244 53,747 MTR Corporation Limited 234 396 6,579 K+S AG 311 206 210,510 New World Development 2,500 KION Group AG 285 271 Company Limited 331 398 3,260 LANXESS AG 243 326 56,229 NWS Holdings Limited 109 127 6,619 Linde AG 1,100 1,943 150,005 PCCW Limited 82 110 1,220 MAN SE 140 176 49,000 Power Assets Holdings Limited 398 520 4,603 Merck KGaA 402 623 45,800 Shangri-La Asia Limited 108 131 6,260 METRO AG 182 157 110,383 Sino Land Company Limited 213 246 1,900 MTU Engines AG 441 428 71,000 SJM Holdings Limited 125 80 5,530 Munchener Ruckversicherungs- 51,982 Sun Hung Kai Properties Limited 791 1,091 Gesellschaft AG 1,166 1,508 17,700 Swire Pacific Limited, Class A 224 206 3,542 OSRAM Licht AG 197 400 41,100 Swire Properties Limited 143 167 5,453 Porsche Automobil Holding SE 533 574 49,400 Techtronic Industries Company Ltd. 199 405 8,208 ProSiebenSat.1 Media AG 382 355 313,600 WH Group Limited 304 445 18,453 RWE AG 1,272 473 42,514 The Wharf (Holdings) Limited 273 185 34,999 SAP AG 2,778 4,933 42,514 Wharf Real Estate Investment 5,910 Schaeffler AG 123 132 Company Limited 316 356 27,243 Siemens AG 3,396 4,772 29,500 Wheelock And Company Limited 137 265 4,349 Symrise AG 321 470 26,100 Yue Yuen Industrial (Holdings) Limited 102 129 26,101 Telefonica Deutschland Holding AG 163 165 16,676 23,022 15,519 ThyssenKrupp AG 563 567 16,428 TUI AG 343 429 IRELAND – 0.6% 7,200 Uniper SE 276 282 5,200 AerCap Holdings NV 286 344 4,381 United Internet AG 174 379 29,000 AIB Group PLC 237 241 7,765 Volkswagen AG 1,349 1,953 32,654 Bank of Ireland Group Public 17,275 Vonovia SE 721 1,078 Limited Company 330 349 4,200 Wirecard AG 578 590 29,785 CRH PLC 1,063 1,346 3,913 Zalando SE 199 260 3,118 DCC PLC 374 395 15,701 James Hardie Industries PLC 185 348 49,835 66,126 5,645 Kerry Group PLC 354 796 GREECE – 0.0% 2,855 Paddy Power Betfair PLC 572 427 1,100 Vodafone-Panafon Hellenic 3,401 4,246 Telecommunications Company SA 11 0 ISRAEL – 0.5% HONG KONG – 3.4% 1,512 Azrieli Group Ltd. 86 106 430,100 AIA Group Limited 2,206 4,612 37,978 Bank Hapoalim B.M. 201 351 9,500 ASM Pacific Technology Limited 104 166 51,541 Bank Leumi Le-Israel BM 243 390 43,814 Bank of East Asia Ltd. 223 239 73,861 Bezeq the Israeli Telecommunication 131,874 BOC Hong Kong (Holdings) Limited 446 840 Corporation Limited 164 140 93,793 CK Asset Holdings Ltd. 738 1,031 4,700 Check Point Software Technologies Ltd. 522 612 96,593 CK Hutchison Holdings Ltd. 2,256 1,524 800 Elbit Systems Ltd. 109 134 23,000 CK Infrastructure Holdings Ltd. 168 248 1,376 Frutarom Industries Ltd. 104 162 58,800 CLP Holdings Limited 569 756 18,024 Israel Chemicals Ltd. 172 92 71,400 First Pacific Company Limited 81 61 4,966 Mizrahi Tefahot Bank Ltd. 63 115 83,200 Galaxy Entertainment Group Ltd. 396 839 2,116 Nice Ltd. 112 243 31,800 Hang Lung Group Limited 158 147 32,600 Teva Pharmaceutical Industries Limited 1,784 777 75,000 Hang Lung Properties Limited 229 230 3,560 3,122

December 31, 2017 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

ITALY – 2.0% 5,800 Dainippon Sumitomo Pharma 44,494 Assicurazioni Generali SpA $ 1,381 $ 1,020 Company Ltd. $ 74 $ 108 16,174 Atlantia SpA 468 642 2,500 Daito Trust Construction Company Ltd. 248 641 20,700 Davide Campari-Milano SPA 208 201 20,200 Daiwa House Industry Company Ltd. 465 975 289,634 Enel SpA 2,089 2,241 51 Daiwa House REIT Investment Corporation 189 152 90,592 Eni SpA 2,555 1,886 58,900 Daiwa Securities Group Inc. 547 464 4,374 Ferrari NV 290 577 3,800 DeNA Company Ltd. 150 98 512,111 Intesa Sanpaolo SpA 2,233 2,134 17,000 Corporation 778 1,283 14,412 Leonardo SpA 290 216 7,800 Dentsu Inc. 340 416 5,971 Luxottica Group SpA 304 461 1,000 Disco Corporation 233 280 19,918 Mediobanca SpA 311 284 4,300 Don Quijote Holdings Company Ltd. 139 283 18,617 Poste Italiane SpA 184 176 11,700 East Railway Company 1,045 1,435 66 Prima Cinque Azione 0 0 9,600 Eisai Company Ltd. 570 687 7,227 Prysmian SpA 189 296 5,260 Electric Power Development Company Ltd. 217 178 3,724 Recordati SpA 203 208 3,000 FamilyMart UNY Holdings Company Ltd. 185 264 80,676 Snam SpA 480 496 6,900 FANUC Corporation 1,090 2,083 400,208 Telecom Italia SpA 872 435 1,900 Fast Retailing Company Ltd. 503 952 207,257 Telecom Italia SpA, di Risp Non Conv. 407 186 20,000 Fuji Electric Holdings Company Ltd. 108 189 49,631 Terna SpA 239 363 14,700 FUJIFILM Holdings Corporation 625 755 71,333 UniCredit SpA 3,260 1,676 70,000 Fujitsu Limited 605 627 35,962 UnipolSai SpA 119 106 28,000 Fukuoka Financial Group Inc. 193 198 16,082 13,604 14,600 The Hachijuni Bank Ltd. 108 105 8,400 Hakuhodo DY Holdings Inc. 88 137 JAPAN – 23.6% 5,000 Photonics K.K. 119 211 1,100 ABC-MART Inc. 57 79 8,620 Hankyu Hanshin Holdings Inc. 277 436 13,400 ACOM Company Ltd. 52 71 800 Hikari Tsushin Inc. 79 145 21,600 AEON Company Ltd. 398 458 9,300 Ltd. 92 151 4,000 AEON Financial Service Company Ltd. 103 117 1,139 Hirose Electric Company Ltd. 149 209 4,150 AEON Mall Company Ltd. 110 102 2,200 Hisamitsu Pharmaceutical Company Inc. 107 168 5,400 Air Water Inc. 87 143 3,800 Chemical Company Ltd. 108 123 6,400 Seiki Company Ltd. 258 452 3,900 Hitachi Construction Machinery 19,200 Ajinomoto Company Inc. 328 454 Company Ltd. 109 178 6,500 Alfresa Holdings Corporation 120 192 2,500 Hitachi High-Technologies Corporation 89 132 7,000 Alps Electric Company Ltd. 272 251 173,100 Hitachi Ltd. 1,154 1,695 12,100 Amada Holdings Company Ltd. 138 207 7,400 Hitachi Metals Ltd. 114 134 4,170 ANA Holdings Inc. 142 219 61,300 Motor Company Ltd. 2,332 2,641 4,220 Aozora Bank Ltd. 141 206 1,900 Hoshizaki Corp. 199 212 7,139 Asahi Glass Company Ltd. 365 389 13,900 Hoya Corporation 561 873 13,800 Asahi Group Holdings Ltd. 385 861 10,300 Hulic Company Ltd. 95 145 45,000 Asahi Kasei Corporation 385 730 4,700 Idemitsu Kosan Company Ltd. 127 237 5,500 ASICS Corporation 100 110 5,499 IHI Corporation 210 230 73,730 Astellas Pharma Inc. 947 1,182 5,200 Iida Group Holdings Company Ltd. 107 123 7,050 Bandai Namco Holdings Inc. 174 290 33,600 INPEX Corporation 490 528 2,199 The Bank of Kyoto Ltd. 124 144 11,620 Isetan Mitsukoshi Holdings Ltd. 200 181 2,400 Benesse Holdings Inc. 111 106 19,600 Motors Limited 238 413 23,200 Corporation 784 1,356 53,300 ITOCHU Corporation 650 1,250 8,200 Ltd. 138 254 8,599 J. Front Retailing Company Ltd. 138 204 2,700 Calbee Inc. 85 110 4,200 Japan Airlines Corp. 124 207 38,000 Canon Inc. 1,814 1,780 1,700 Japan Airport Terminal Company Ltd. 109 79 7,300 Casio Computer Company Ltd. 156 132 18,600 Japan Exchange Group Inc. 229 407 5,200 Central Japan Railway Company 772 1,171 14,000 Japan Post Bank Company Ltd. 261 229 25,000 The Chiba Bank Ltd. 205 262 56,100 Japan Post Holdings Company Ltd. 906 809 23,000 Chubu Electric Power Company Inc. 576 359 28 Japan Prime Realty Investment 8,000 Chugai Pharmaceutical Company Ltd. 243 515 Corporation 107 112 10,000 The Chugoku Electric Power Company Inc. 193 135 44 Japan Real Estate Investment Corporation 264 263 4,300 Coca-Cola Bottlers Japan Inc. 186 197 95 Japan Retail Fund Investment Corporation 216 219 43,400 Concordia Financial Group Ltd. 313 329 39,200 Japan Tobacco Inc. 1,334 1,588 5,700 Credit Saison Company Ltd. 184 130 18,400 JFE Holdings Inc. 646 555 3,500 CYBERDYNE Inc. 103 76 7,400 JGC Corporation 172 180 9,500 Dai Nippon Printing Company Ltd. 277 266 6,700 JSR Corporation 155 166 10,000 Daicel Chemical Industries Ltd. 105 143 8,000 JTEKT Corporation 157 173 3,600 Daifuku Co Ltd 253 247 109,850 JXTG Holdings Inc. 675 891 38,450 The Dai-ichi Life Insurance Company Ltd. 676 997 33,000 Kajima Corporation 212 399 20,158 Daiichi Sankyo Company Ltd. 588 660 4,700 Kakaku.com Inc. 96 100 8,900 Daikin Industries Ltd. 590 1,324 4,000 Kamigumi Company Ltd. 81 111

December 31, 2017 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

11,000 Kaneka Corporation $ 107 $ 126 6,800 Murata Manufacturing Company Ltd. $ 688 $ 1,147 24,800 The Kansai Electric Power Company Inc. 531 382 4,100 Nabtesco Corporation 102 198 7,300 Kansai Paint Company Ltd. 86 238 6,619 Nagoya Railroad Company Ltd. 156 209 17,700 Kao Corporation 761 1,504 9,290 NEC Corporation 422 315 5,299 Kawasaki Heavy Industries Ltd. 204 234 6,900 NEXON Company Ltd. 130 252 64,500 KDDI Corporation 1,378 2,018 9,200 NGK Insulators Ltd. 174 218 3,359 Keihan Holdings Company Ltd. 112 124 5,900 NGK Spark Plug Company Ltd. 121 180 8,399 Keikyu Corporation 163 203 7,000 NH Foods Ltd. 138 215 3,999 Keio Corporation 167 221 8,500 Corporation 590 1,499 4,900 Keisei Electric Railway Company Ltd. 98 198 12,200 Nikon Corporation 284 309 3,465 Keyence Corporation 894 2,440 4,032 Nintendo Company Ltd. 1,046 1,853 5,300 Kikkoman Corporation 116 270 47 Nippon Building Fund Inc. 287 289 6,539 Kintetsu Group Holdings Company Ltd. 284 315 3,000 Nippon Electric Glass Company Ltd. 147 144 31,000 Kirin Holdings Company Limited 556 982 2,999 Nippon Express Company Ltd. 182 251 11,099 Kobe Steel Ltd. 257 129 5,800 Nippon Paint Holdings Company Ltd. 151 231 4,100 Koito Manufacturing Company Ltd. 138 362 65 Nippon Prologis REIT Inc. 148 173 32,900 Komatsu Ltd. 757 1,497 26,930 Nippon Steel & Sumitomo 3,400 Konami Holdings Corporation 127 235 Metal Corporation 1,123 869 17,000 Konica Minolta Inc. 233 206 24,700 Nippon Telegraph and Telephone 1,100 KOSE Corporation 144 216 Corporation 884 1,461 37,600 Kubota Corporation 493 927 5,599 Nippon Yusen KK 267 172 12,700 Kuraray Company Ltd. 191 301 4,200 Chemical Industries Ltd. 188 211 3,400 Kurita Water Industries Ltd. 92 139 82,700 Nissan Motor Company Ltd. 944 1,037 11,500 Kyocera Corporation 641 946 7,039 Nisshin Seifun Group Inc. 90 179 9,200 Kyowa Hakko Kirin Company Ltd. 135 224 2,100 Nissin Foods Holdings Company Ltd. 104 193 15,200 Kyushu Electric Power 2,900 Nitori Holdings Company Ltd. 223 520 Company Incorporated 315 200 5,900 Nitto Denko Corp. 413 659 12,000 Kyushu Financial Group Inc. 117 91 12,500 NKSJ Holdings Inc. 496 609 5,700 Kyushu Railway Company 259 222 3,200 NOK Corporation 84 94 2,100 Lawson Inc. 139 175 129,400 Nomura Holdings Inc. 1,291 960 1,600 LINE Corporation 83 82 4,400 Nomura Real Estate Holdings Inc. 112 124 8,600 Lion Corporation 190 205 131 Nomura Real Estate Master Fund Inc. 230 204 9,500 LIXIL Group Corp. 245 323 4,590 Nomura Research Institute Ltd. 150 268 7,500 M3 Inc. 154 332 14,700 NSK Ltd. 153 291 1,700 Company Ltd. 72 116 22,500 NTT DATA Corporation 256 336 8,000 Makita Corporation 203 423 48,678 NTT DOCOMO Inc. 1,062 1,445 58,100 Marubeni Corporation 392 529 23,200 Obayashi Corporation 191 353 6,900 Marui Group Company Ltd. 104 159 2,400 OBIC Company Ltd. 172 222 2,100 Maruichi Steel Tube Ltd. 69 77 10,399 Odakyu Electric Railway Company Ltd. 200 280 20,300 Motor Corporation 373 342 30,100 Oji Holdings Corp. 176 252 2,300 McDonald’s Holdings Company 10,400 Olympus Corporation 408 501 (Japan) Ltd. 66 127 6,900 OMRON Corporation 260 517 35,759 Mebuki Financial Group Inc. 179 190 14,700 Ono Pharmaceutical Company Ltd. 278 431 5,900 Medipal Holdings Corp. 121 145 1,400 Oracle Corporation Japan 82 146 4,336 MEIJI Holdings Company Ltd. 206 464 7,800 Oriental Land Company Limited 349 894 13,700 Minebea Company Ltd., NPV 211 361 47,200 ORIX Corporation 956 1,003 10,100 MISUMI Group Inc. 253 370 13,399 Osaka Gas Company Ltd. 304 324 51,050 Chemical Holdings Corporation 377 704 1,900 OTSUKA Corporation 85 183 53,800 Mitsubishi Corporation 1,250 1,868 13,800 Otsuka Holdings Company Ltd. 491 762 68,900 Mitsubishi Electric Corporation 842 1,439 78,707 Corporation 1,350 1,448 44,600 Mitsubishi Estate Company Ltd. 1,141 975 3,800 Park24 Company Ltd. 93 114 6,400 Mitsubishi Gas Chemical Company Inc. 112 231 3,300 Pola Orbis Holdings Inc. 99 146 11,499 Mitsubishi Heavy Industries Ltd. 629 540 32,800 Rakuten Inc. 385 378 3,900 Mitsubishi Materials Corporation 164 174 39,300 Recruit Holdings Company Ltd. 625 1,228 23,600 Corporation 313 214 17,600 Renesas Electronics Corporation 222 258 7,900 Mitsubishi Tanabe Pharma Corporation 140 206 77,600 Resona Holdings Inc. 666 583 424,680 Mitsubishi UFJ Financial Group Inc. 3,727 3,915 24,900 Ricoh Company Ltd. 392 291 16,000 Mitsubishi UFJ Lease & Finance 1,200 Rinnai Corporation 91 137 Company Ltd. 87 120 3,400 Rohm Company Limited 340 473 60,800 Mitsui & Company Ltd. 1,016 1,243 900 Ryohin Keikaku Company Ltd. 267 352 6,400 Mitsui Chemicals Inc. 182 259 1,500 Sankyo Company Ltd. 84 59 31,800 Mitsui Fudosan Company Ltd. 903 896 13,100 Santen Pharmaceutical Company Ltd. 140 259 4,100 Mitsui O.S.K. Lines Ltd. 297 172 7,200 SBI Holdings Inc. 171 189 1,500 mixi Inc. 78 85 7,500 SECOM Company Ltd. 547 712 858,963 Mizuho Financial Group Inc. 2,719 1,961 5,984 Sega Sammy Holdings Inc. 155 93 16,764 MS & AD Insurance Group Holdings Inc. 574 713

December 31, 2017 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

8,000 Seibu Holdings Inc. $ 193 $ 190 17,700 Tokyu Fudosan Holdings Corporation $ 156 $ 161 10,000 Seiko Epson Corporation 199 297 18,500 Toppan Printing Company Ltd. 200 210 14,400 Sekisui Chemical Company Ltd. 168 363 52,300 Toray Industries Inc. 443 620 21,300 Sekisui House Ltd. 355 484 230,000 Toshiba Corporation 1,049 813 26,900 Seven & i Holdings Company Ltd. 1,152 1,405 10,350 Tosoh Corporation 240 295 21,300 Seven Bank Ltd. 90 92 5,099 TOTO Ltd. 145 378 5,349 Sharp Corporation 111 231 5,700 Toyo Seikan Group Holdings Ltd. 112 115 8,900 Shimadzu Corporation 116 254 3,200 Toyo Suisan Kaisha Ltd. 107 172 800 Shimamura Company Ltd. 103 111 2,400 Toyoda Gosei Company Ltd. 63 77 2,642 Inc. 236 467 5,800 Industries Corporation 310 468 19,400 Shimizu Corporation 142 252 93,000 Toyota Motor Corporation 6,020 7,484 13,900 Shin-Etsu Chemical Company Ltd. 1,035 1,776 7,600 Toyota Tsusho Corporation 224 385 5,700 Shinsei Bank Limited 171 124 4,200 Trend Micro Inc. 176 299 10,600 Shionogi & Company Ltd. 361 721 1,300 Tsuruha Holdings Inc. 177 222 13,600 Shiseido Company Ltd. 355 826 14,300 Unicharm Corporation 258 467 17,800 The Shizuoka Bank Ltd. 209 231 108 United Urban Investment Corporation 182 195 6,800 Showa Shell Sekiyu K.K. 82 116 7,900 USS Company Ltd. 107 210 2,100 SMC Corporation 502 1,087 5,900 West Japan Railway Company 347 542 29,400 SoftBank Group Corp. 1,566 2,926 50,800 Yahoo Japan Corporation 266 293 2,600 Sohgo Security Services Company Ltd. 166 178 3,100 Yakult Honsha Company Ltd. 143 294 45,100 Sony Corporation 1,798 2,557 22,300 Yamada Denki Company Ltd. 171 154 6,000 Sony Financial Holdings Inc. 114 134 7,000 Yamaguchi Financial Group Inc. 97 105 5,100 Company Ltd. 130 260 5,900 150 274 6,800 Start Today Company Ltd. 156 260 10,000 Yamaha Motor Company Ltd. 248 412 22,000 Corporation 498 879 12,300 Yamato Holdings Company Ltd. 250 311 8,400 SUMCO Corporation 272 271 4,440 Yamazaki Baking Company Ltd. 76 109 56,500 Sumitomo Chemical Company Ltd. 376 511 9,100 Yaskawa Electric Corporation 147 504 42,400 Sumitomo Corporation 650 906 8,200 Yokogawa Electric Corporation 128 197 26,600 Sumitomo Electric Industries Ltd. 449 565 4,300 The Ltd. 99 133 4,200 Sumitomo Heavy Industries Ltd. 180 223 121,874 162,213 8,749 Sumitomo Metal Mining Company Ltd. 288 505 47,900 Sumitomo Mitsui Financial Group Inc. 2,817 2,601 JERSEY – 0.1% 11,774 Sumitomo Mitsui Trust Holdings Inc. 713 588 3,316 Randgold Resources Limited 295 417 13,000 Sumitomo Realty & Development LUXEMBOURG – 0.3% Company Ltd. 433 537 23,654 ArcelorMittal 1,257 967 6,600 Sumitomo Rubber Industries Ltd. 113 154 400 Eurofins Scientific SE 235 306 2,600 Sundrug Company Ltd. 141 152 2,322 Millicom International Cellular SA 225 197 5,000 Suntory Beverage & Food Limited 213 279 1,377 RTL Group SA 167 139 6,200 Suruga Bank Ltd. 113 167 12,973 SES SA 390 255 2,470 Suzuken Company Ltd. 91 128 16,816 Tenaris SA 274 334 12,300 Motor Corporation 411 897 2,548 2,198 5,600 Sysmex Corporation 236 554 19,100 T&D Holdings Inc. 423 411 MACAU – 0.1% 4,249 Taiheiyo Cement Corporation 127 231 34,000 MGM China Holdings Limited 73 129 7,400 Taisei Corporation 202 463 85,400 Sands China Ltd. 311 554 1,200 Taisho Pharmaceutical 53,900 Wynn Macau Limited 120 215 Holdings Company Ltd. 105 120 504 898 4,700 Taiyo Nippon Sanso Corporation 44 83 11,000 Takashimaya Company Ltd. 145 146 MALAYSIA – 0.0% 25,400 Takeda Pharmaceutical Company Ltd. 1,616 1,814 1,000 Promet Berhad 0 0 4,700 TDK Corporation 366 471 MEXICO – 0.0% 6,700 Teijin Ltd. 162 188 7,760 Fresnillo PLC 125 188 6,400 Temp Holdings Co Ltd 193 202 11,500 Terumo Corporation 364 685 NETHERLANDS – 4.5% 4,300 THK Company Ltd. 125 203 15,064 ABN AMRO Group NV 465 611 6,799 Tobu Railway Company Ltd. 193 276 61,983 Aegon NV 773 497 4,100 Toho Company Ltd. 110 179 8,981 Akzo Nobel NV 686 989 2,599 Toho Gas Company Ltd. 77 90 18,898 Altice NV, Class A 410 249 15,900 Tohoku Electric Power Company Inc. 337 256 13,829 ASML Holding NV 1,166 3,027 24,200 Tokio Marine Holdings Inc. 992 1,388 3,862 EXOR NV 172 298 51,600 Tokyo Electric Power Company 4,103 Heineken Holding NV 311 511 Holdings Inc. 1,018 257 9,231 Heineken NV 746 1,210 5,600 Tokyo Electron Limited 477 1,274 138,362 ING Groep NV 3,030 3,198 13,900 Tokyo Gas Company Ltd. 390 400 45,628 Koninklijke Ahold Delhaize NV 1,038 1,262 7,400 Tokyo Tatemono Company Ltd. 125 126 6,461 Koninklijke DSM NV 422 776 19,000 Tokyu Corporation 280 381

December 31, 2017 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

121,654 Koninklijke KPN NV $ 673 $ 534 89,700 Suntec Real Estate Investment Trust $ 147 $ 181 33,507 Koninklijke Philips NV 1,268 1,594 47,560 United Overseas Bank Limited 779 1,182 2,434 Koninklijke Vopak NV 127 134 16,987 UOL Group Limited 78 142 10,846 NN Group NV 427 591 64,100 Wilmar International Limited 242 186 12,351 NXP Semiconductors NV 1,588 1,818 6,871 8,851 7,697 Qiagen NV 206 304 4,243 Randstad Holding NV 247 328 SOUTH AFRICA – 0.1% 3,187 Royal Boskalis Westminster NV 172 151 23,740 Investec PLC 240 216 160,627 Royal Dutch Shell PLC, Class A 5,870 6,761 13,127 Mediclinic International PLC 225 145 133,380 Royal Dutch Shell PLC, Class B 4,741 5,678 12,919 Mondi PLC 370 423 10,751 Wolters Kluwer NV 379 705 835 784

24,917 31,226 SPAIN – 3.1% NEW ZEALAND – 0.2% 24,688 Abertis Infraestructuras SA 560 691 33,463 Auckland International Airport Limited 107 193 8,490 ACS Actividades de Construccion 20,400 Fisher & Paykel Healthcare Corp Ltd. 236 261 y Servicios SA 406 418 24,783 Fletcher Building Limited 184 168 2,404 Aena SA 331 613 24,059 Mercury NZ Limited 64 72 15,627 Amadeus IT Holding SA 612 1,417 44,044 Meridian Energy Ltd. 91 115 237,448 Banco Bilbao Vizcaya Argentaria SA 3,322 2,547 14,245 Ryman Healthcare Limited 101 134 187,264 Banco de Sabadell SA 628 468 64,448 Spark New Zealand Limited 200 208 575,239 Banco Santander SA 5,864 4,753 38,391 Bankia SA 283 231 983 1,151 24,007 Bankinter SA 241 286 NORWAY – 0.6% 127,802 CaixaBank SA 648 749 34,802 DNB ASA 569 810 7,795 Enagas SA 239 280 7,059 Gjensidige Forsikring ASA 115 167 11,311 Endesa SA 294 304 14,837 Marine Harvest ASA 329 316 17,499 Ferrovial SA 411 499 47,415 Norsk Hydro ASA 540 453 12,294 Gas Natural SDG SA 325 357 28,611 Orkla ASA 323 381 10,470 Grifols SA 208 386 3,491 Schibsted ASA 149 116 202,474 Iberdrola SA 1,930 1,973 40,967 Statoil ASA 1,124 1,099 38,846 Industria de Diseno Textil SA 962 1,702 26,734 Telenor ASA 559 720 37,831 MAPFRE SA 165 153 6,234 Yara International ASA 239 360 15,241 Red Electrica Corporacion SA 294 430 3,947 4,422 43,254 Repsol SA 1,149 962 43,254 Repsol SA, Rights 05/01/2018 25 25 PORTUGAL – 0.1% 8,100 Siemens Gamesa Renewable Energy SA 248 140 60,788 Banco Espirito Santo SA 179 0 161,460 Telefonica SA 3,162 1,978 83,799 EDP – Energias de Portugal SA 404 365 22,307 21,362 17,851 Galp Energia SGPS SA 302 412 8,964 Jeronimo Martins SGPS SA 139 219 SWEDEN – 2.6% 1,024 996 8,498 AB Electrolux, Class B 243 344 10,306 Alfa Laval AB 169 306 SINGAPORE – 1.3% 35,693 Assa Abloy AB 518 932 87,600 Ascendas Real Estate Investment Trust 170 224 23,914 Atlas Copco AB, Class A 617 1,298 89,800 Capitaland Commercial Trust 13,896 Atlas Copco AB, Class B 329 670 Management Limited 131 163 9,642 Boliden AB 173 415 91,400 CapitaLand Limited 302 303 21,576 Essity AB 791 770 87,800 CapitaLand Mall Trust 150 176 8,146 Getinge AB 200 149 14,600 City Developments Limited 127 171 33,811 Hennes & Mauritz AB 1,135 877 76,100 ComfortDelGro Corporation Limited 136 142 9,207 Hexagon AB 290 580 63,959 DBS Group Holdings Ltd. 892 1,494 14,625 Husqvarna AB 154 175 215,400 Genting Singapore PLC 191 265 2,717 ICA Gruppen AB 120 124 94,600 Global Logistic Properties Limited 188 300 5,762 Industrivarden AB 113 179 251,440 Golden Agri-Resources Ltd. 132 87 16,221 Investor AB 548 930 179,700 Hutchison Port Holdings Trust 150 94 8,224 Kinnevik AB 228 349 3,471 Jardine Cycle & Carriage Limited 100 133 1,300 L E Lundbergforetagen AB 103 122 51,800 Keppel Corporation Limited 320 358 6,667 Lundin Petroleum AB 165 192 112,090 Oversea-Chinese Banking 108,167 Nordea Bank AB 1,436 1,646 Corporation Limited 830 1,305 40,203 Sandvik AB 606 885 23,200 SATS Ltd. 105 113 11,151 Securitas AB 193 245 34,966 SembCorp Industries Ltd. 112 100 54,094 Skandinaviska Enskilda Banken AB 695 798 19,100 Singapore Airlines Ltd. 202 191 12,112 Skanska AB 263 315 28,300 Singapore Exchange Limited 159 198 13,452 SKF AB, Class B 284 376 56,775 Singapore Press Holdings Limited 184 141 54,383 Svenska Handelsbanken AB 733 935 54,800 Singapore Technologies Engineering Ltd. 149 168 32,250 Swedbank AB 774 978 290,800 Singapore Telecommunications Ltd. 843 976 21,600 StarHub Ltd. 52 58

December 31, 2017 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

6,488 Swedish Match AB $ 182 $ 321 300,199 BT Group PLC $ 1,839 $ 1,384 12,879 Tele2 AB 187 199 11,802 Bunzl PLC 270 415 109,411 Telefonaktiebolaget LM Ericsson 1,752 903 15,441 Burberry Group PLC 305 470 92,519 Telia Company AB 704 518 22,929 Capita PLC 344 156 55,502 Volvo AB 851 1,299 199,149 Centrica PLC 1,056 464 14,556 17,830 36,433 CNH Industrial NV 433 614 84,335 Cobham PLC 271 181 SWITZERLAND – 8.6% 7,658 Coca-Cola European Partners PLC 407 384 69,962 ABB Ltd. 1,510 2,357 56,316 Compass Group PLC 798 1,529 5,791 Adecco Group AG 458 557 48,646 ConvaTec Group PLC 255 170 1,719 Baloise Holding AG 228 336 4,679 Croda International PLC 211 351 76 Barry Callebaut AG 86 199 89,701 Diageo PLC 2,504 4,148 42 Chocoladefabriken Lindt & Spruengli AG 417 655 48,965 Direct Line Insurance Group PLC 245 317 18,589 Cie Financiere Richemont SA 1,191 2,117 5,461 easyJet PLC 122 136 8,300 Clariant Ltd., AG 292 292 33,106 Experian PLC 552 919 6,495 Coca-Cola HBC AG 174 267 38,321 Fiat Automobiles NV 616 862 86,471 Credit Suisse Group AG 2,887 1,941 55,254 G4S PLC 237 250 1,247 Dufry AG 223 233 60,180 GKN PLC 270 326 292 EMS-Chemie Holding AG 117 245 175,151 GlaxoSmithKline PLC 4,837 3,931 9,020 Ferguson PLC 657 816 28,248 Hammerson PLC 358 262 1,320 Geberit AG 381 731 9,234 Hargreaves Lansdown PLC 163 282 329 Givaudan SA 503 956 715,766 HSBC Holdings PLC 9,029 9,316 435,716 Glencore PLC 2,144 2,884 9,546 IMI PLC 176 216 7,971 Julius Baer Gruppe AG 384 613 34,141 Imperial PLC 1,572 1,834 1,902 Kuehne + Nagel International AG 234 423 6,335 InterContinental Hotels Group PLC 294 507 16,210 LafargeHolcim Ltd., Class B 1,402 1,149 22,021 International Consolidated 2,652 Lonza Group AG 459 901 Airlines Group SA 125 240 110,827 Nestle SA 7,229 11,980 5,677 Intertek Group PLC 234 500 79,210 Novartis AG 6,296 8,420 127,159 ITV PLC 266 357 1,375 Pargesa Holding SA 141 150 58,488 J Sainsbury PLC 368 240 619 Partners Group Holding AG 211 533 24,061 John Wood Group PLC 290 265 25,019 Roche Holding AG 6,247 7,955 6,793 Johnson Matthey PLC 294 354 2,176 Schindler Holding AG 267 626 79,112 Kingfisher PLC 451 453 193 SGS SA 366 633 26,056 Land Securities Group PLC 622 446 76 Sika AG 252 759 212,137 Legal & General Group PLC 738 984 1,864 Sonova Holding AG 233 366 2,562,200 Lloyds Banking Group PLC 3,679 2,960 22,698 STMicroelectronics NV 402 623 11,066 London Stock Exchange Group PLC 429 712 368 Straumann Holding AG 283 327 57,026 Marks & Spencer Group PLC 595 305 1,083 The Swatch Group AG 388 555 27,626 Meggitt PLC 197 226 1,984 The Swatch Group AG , Class B 156 191 24,958 Merlin Entertainments PLC 181 154 1,158 Swiss Life Holding 323 515 15,492 Micro Focus International PLC 587 663 2,546 Swiss Prime Site AG 240 296 121,747 National Grid PLC 1,898 1,808 11,375 Swiss Re Ltd. 1,050 1,339 5,162 Next PLC 334 396 923 Swisscom AG 492 617 175,641 Old Mutual PLC 649 691 130,317 UBS Group AG 4,005 3,016 29,310 Pearson PLC 513 366 1,721 Vifor Pharma AG 310 277 10,844 Persimmon PLC 272 504 5,390 Zurich Insurance Group AG 1,627 2,062 92,085 Prudential PLC 1,782 2,978 44,265 58,912 23,800 Reckitt Benckiser Group PLC 1,896 2,795 34,399 RELX NV 539 994 UNITED KINGDOM – 15.2% 37,926 RELX PLC 612 1,119 34,644 3i Group PLC 391 537 15,106 Rio Tinto Limited 893 1,123 7,114 Admiral Group PLC 173 242 43,965 Rio Tinto PLC 2,351 2,941 47,519 Anglo American PLC 1,855 1,250 2,728,738 Rolls-Royce Holdings PLC 700 848 17,778 Ashtead Group PLC 355 601 127,188 Royal Bank of Scotland Group PLC 3,284 600 12,687 Associated British Foods PLC 409 607 31,847 Royal Mail PLC 317 245 45,076 AstraZeneca PLC 3,077 3,918 35,788 RSA Insurance Group PLC 421 384 34,355 Auto Trader Group PLC 262 206 38,018 The Sage Group PLC 287 515 143,565 Aviva PLC 1,558 1,234 4,441 Schroders PLC 164 265 9,003 Babcock International Group PLC 142 108 35,594 Segro PLC 362 355 113,424 BAE Systems PLC 961 1,103 8,413 Severn Trent PLC 270 309 606,637 Barclays PLC 3,631 2,091 36,730 Sky PLC 521 631 35,343 Barratt Developments PLC 387 388 31,163 Smith & Nephew PLC 450 681 4,518 Berkeley Group Holdings PLC 268 322 13,880 Smiths Group PLC 368 351 703,405 BP PLC 6,843 6,240 35,512 SSE PLC 981 796 81,674 British American Tobacco PLC 4,727 6,956 34,337 The British Land Company PLC 546 403

December 31, 2017 14 Annual Financial Statements TD International Index Fund

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

18,515 St James’s Place PLC $ 338 $ 385 117,217 Standard Chartered PLC 2,091 1,552 95,420 Standard Life Aberdeen PLC 673 707 114,812 Taylor Wimpey PLC 394 402 291,614 Tesco PLC 1,785 1,036 8,860 Travis Perkins PLC 247 236 58,010 Unilever NV 2,433 4,108 45,048 Unilever PLC 1,892 3,154 23,934 United Utilities Group PLC 348 337 949,657 Vodafone Group PLC 4,786 3,787 7,954 The Weir Group PLC 241 287 6,462 Whitbread PLC 345 439 79,637 Wm Morrison Supermarkets PLC 393 297 71,222 Worldpay Group PLC 380 515 44,957 WPP PLC 874 1,023 98,889 104,449

Total International Equities 551,481 670,957

Index Equivalents – 1.8% 139,000 iShares MSCI EAFE ETF 12,160 12,285

Transaction Costs (541)

TOTAL INVESTMENT PORTFOLIO – 99.7% $ 565,338 $ 685,933

FORWARD CONTRACTS (SCHEDULE 1) – 0.0% 5 OTHER NET ASSETS (LIABILITIES) – 0.3% 2,094

TOTAL NET ASSETS – 100.0% $ 688,032

Schedule 1

Foreign Exchange Forward Contracts (in 000s except contract price and total number of contract(s)) Canadian Value Canadian Value Settlement Currency to be as at Currency to be as at Contract CAD Unrealized Date Delivered December31, 2017 Received December 31, 2017 Price Appreciation

January 03, 2018 2,079 CAD $ 2,079 1,658 USD $ 2,084 1.25388 $ 5

TOTAL NUMBER OF CONTRACT(S): 1 CAD NET UNREALIZED APPRECIATION $ 5

December 31, 2017 15 Annual Financial Statements nTD International Index Fund Fund-Specific Notes to the Financial Statements (C) Brokerage Commissions and Soft Dollars (in 000s) (Notes 3 and 6) for the periods ended December 31, 2017 and 2016 (A) The Fund (I) The Fund start date was May 13, 1997. (I) BROKERAGE COMMISSIONS (II) TDAM is the manager, portfolio adviser and trustee of the Fund. TDIS 2017 2016 is the principal distributor of the Investor and e-Series units of the Fund. Total Brokerage Commissions $ 188 $ 145 (III) The presentation and functional currency of the Fund is the Paid to Related Parties 20 7 Canadian dollar. (IV) The investment objective of the Fund is to seek to track the MSCI (II) SOFT DOLLARS Europe, Australasia and Far East Index (Net Dividend, C$) (“MSCI EAFE Index Not significant or applicable to the Fund. (ND, C$)”), which is a broadly diversified index consisting of equity securities (D) Tax Loss Carry Forwards (in 000s) (Note 7) of companies domiciled in developed markets outside the United States and as at December 31, 2017 Canada. In seeking to achieve this objective, the investment strategy involves the selection of a subset of securities from the MSCI EAFE Index so that the Capital Losses $ 41,923 overall attributes of the Fund’s portfolio are closely matched to the MSCI Non-Capital Losses (by year of expiry) None EAFE Index. The number of stocks purchased, and the proportion of each, be chosen to optimize performance tracking while minimizing costs, having (E) Securities Lent (Note 3) regard to the size of the Fund. (I) SECURITIES LENDING INCOME (B) Management Fees and Administration Fees (Note 6) A reconciliation of the gross amount generated from the securities lending for the periods ended December 31, 2017 and 2016 transactions to the securities lending income to the Fund for the periods ended December 31, 2017 and 2016 is as follows: (I) MANAGEMENT FEES (%) (exclusive of GST and HST) Percentage of Annual Maximum Actual Amount (in 000s) Total Amount (%) Rate• Annual Rate Annual Rate• 2017 2016 2017 2016 Series 2017 2016 2016 Gross Securities Investor Series 0.90 0.90 0.90 Lending Income $ 384 $ 340 100.0 100.0 e-Series 0.45 0.50 0.46 Agent fees – The Bank of Institutional Series 0.45 0.50 0.47 New York Mellon Corp. (76) (65) (19.8) (19.1) F-Series 0.50 0.50 0.50 O-Series 0.00 0.00 0.00 Securities Lending Income to the Fund • Includes management fees paid by the Fund and the proportionate management fees, before Tax Reclaims if any, of the underlying fund(s) managed by TDAM held by the Fund. However, there (Withholding Taxes) 308 275 80.2 80.9 is no duplication of management fees paid to TDAM or its affiliates if the Fund invests in underlying fund(s) that are managed by TDAM. Tax Reclaims (Withholding Taxes) (5) (13) (1.3) (3.8) Effective July 27, 2017, the management fee rate charged to e-Series and Institutional Series was changed from 0.46% to 0.45% and 0.47% to 0.45%, respectively. Net Securities The amount payable (in 000s) to TDAM as at December 31, 2017 for Lending Income $ 303 $ 262 78.9 77.1 management fees is $0 (2016: $0) which is included in Accrued Liabilities (II) SECURITIES LENT AND COLLATERAL HELD (in 000s) in the Statements of Financial Position. The table below summarizes the aggregate securities lent and related (II) ADMINISTRATION FEES (%) (exclusive of GST and HST) collateral held by the Fund as at December 31, 2017 and 2016. Not applicable for the Fund. 2017 2016 Fair Value of Securities Lent $ 71,846 $ 41,867 Fair Value of Collateral Held 76,482 45,683

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

December 31, 2017 16 Annual Financial Statements TD International Index Fund Fund-Specific Notes to the Financial Statements

(F) Financial Risk Management (Notes 3, 4 and 8) (III) OTHER PRICE RISK as at December 31, 2017 and 2016 The table below summarizes the impact of other price risk to the Fund. As at (I) INTEREST RATE RISK December 31, 2017 and 2016, had the benchmark of the Fund increased or Not significant or applicable 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 table indicates the foreign currencies to which the fund had Impact on Impact on Net Assets (in 000s) Net Assets (%) exposure to as at December 31, 2017 and 2016 in Canadian dollar terms, Benchmark 2017 2016 2017 2016 including the underlying principal amount of foreign exchange forward contracts, as applicable. The table also illustrates the potential impact to MSCI EAFE Index (Net Dividend, C$) $ 35,326 $ 27,421 5.1 5.2 the Fund’s net assets if the Fund’s functional currency, the Canadian dollar, had strengthened or weakened by 5 percent in relation to all exposure In practice, the actual trading results may differ from the above estimated to other currencies, with all other variables held constant. In practice, the amounts and the differences could be material. actual trading results may differ from these approximate sensitivity amounts (IV) CREDIT RISK and the differences could be material. Not significant or applicable to the Fund. Foreign Exchange (V) FINANCIAL INSTRUMENTS BY THE LEVEL IN THE FAIR VALUE HIERARCHY Financial Forward Total Impact on (in 000s) Currency (in 000s) Instruments Contracts Exposure* Net Assets* The table below illustrates the classification of the Fund’s financial instruments December 31, 2017 within the fair value hierarchy as at December 31, 2017 and 2016. Australian Dollar $ 46,775 $ 0 $ 46,775 $ 2,339

British Pound 119,949 0 119,949 5,997 Level 1 Level 2 Level 3 Total Danish Krone 12,310 0 12,310 615 Euro 216,566 0 216,566 10,828 December 31, 2017 Hong Kong Dollar 22,510 0 22,510 1,126 Common Shares $ 673,623 $ 0 $ 0 $ 673,623 Israeli Shekel 1,741 0 1,741 87 Forward Contracts 0 5 0 5 Japanese Yen 162,533 0 162,533 8,127 Rights 25 0 0 25 New Zealand Dollar 1,155 0 1,155 58 Exchange-Traded Funds 12,285 0 0 12,285 Norwegian Krone 4,463 0 4,463 223 $ 685,933 $ 5 $ 0 $ 685,938 Singapore Dollar 8,900 0 8,900 445 Swedish Krona 18,058 0 18,058 903 As at the end of the period, equity positions with a fair value of $1,526 Swiss Franc 54,330 0 54,330 2,716 were transferred from Level 2 to Level 1 as a result of increased activity in United States Dollar 15,896 2,084 17,980 899 the market for those securities. Total $ 685,186 $ 2,084 $ 687,270 $ 34,363

As Percentage of Level 1 Level 2 Level 3 Total Net Assets (%) 99.9 5.0 December 31, 2016 Total Impact on Common Shares $ 512,297 $ 1,280 $ 4 $ 513,581 Currency (in 000s) Exposure* Net Assets* Exchange-Traded Funds 13,743 0 0 13,743 December 31, 2016 526,040 1,280 4 527,324 Australian Dollar $ 37,999 $ 1,900 British Pound 94,309 4,715 Forward Contracts 0 (2) 0 (2) Danish Krone 8,456 423 $ 526,040 $ 1,278 $ 4 $ 527,322 Euro 157,634 7,882 Hong Kong Dollar 15,691 784 As at the end of the period, equity positions with a fair value of $698 Israeli Shekel 1,298 65 and $126,691 were transferred from Level 1 to Level 2 and Level 2 Japanese Yen 124,276 6,214 to level 1 respectively as a result of changes in activities in the market New Zealand Dollar 904 45 for these securities. Norwegian Krone 3,400 170 Singapore Dollar 6,295 315 Swedish Krona 14,575 729 Swiss Franc 44,696 2,235 United States Dollar 18,581 929 Total $ 528,114 $ 26,406 As Percentage of Net Assets (%) 99.9 5.0

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

December 31, 2017 17 Annual Financial Statements TD International Index Fund Fund-Specific Notes to the Financial Statements

(VI) RECONCILIATION OF LEVEL 3 FAIR VALUE MEASUREMENTS (in 000s) (G) Investment Portfolio Concentration (%) (Note 8) The table below reconciles the Fund’s Level 3 fair value measurements As at December 31, 2017 and 2016, the Fund’s investment portfolio from January 1, 2017 to December 31, 2017 and January 1, 2016 to concentration can be summarized as follows:

December 31, 2016. 2017 2016 Common Shares U.S. Equities Balance at January 1, 2017 $ 4 Consumer Discretionary 0.1 0.1 Purchases 0 Health Care 0.3 0.4 Sales (6) International Equities Net Transfers In (Out) Australia 6.8 7.2 Gains (Losses) Austria 0.3 0.2 Net Realized Gain (Loss) on Sale of Investments 6 Belgium 1.1 1.1 Net Change in Unrealized Appreciation/ Chile 0.0 0.0 Depreciation of Investments (4) China 0.0 0.0 Denmark 1.8 1.6 Balance at December 31, 2017 $ 0 Finland 0.9 0.9 Total Change in Unrealized Appreciation/Depreciation France 10.1 9.7 for Assets Held at December 31, 2017 $ 0 Germany 9.6 9.0

Common Greece 0.0 0.0 Shares Hong Kong 3.4 3.0 Ireland 0.6 0.8 Balance at January 1, 2016 $ 11 Israel 0.5 0.7 Net Transfers In (Out) 4 Italy 2.0 1.8 Gains (Losses) Japan 23.6 23.5 Net Change in Unrealized Appreciation/ Jersey 0.1 0.1 Depreciation of Investments (11) Luxembourg 0.3 0.3 Balance at December 31, 2016 $ 4 Macau 0.1 0.1 Total Change in Unrealized Appreciation/Depreciation Malaysia 0.0 0.0 for Assets Held at December 31, 2016 $ (11) Mexico 0.0 0.0 Netherlands 4.5 4.4 (VII) CONTRACTUAL MATURITIES ANALYSIS FOR FINANCIAL LIABILITIES New Zealand 0.2 0.2 Norway 0.6 0.6 As at December 31, 2017 and 2016, the Fund’s net assets are due on Portugal 0.1 0.2 demand. All other financial liabilities of the Fund are due in less than Singapore 1.3 1.2 three months. South Africa 0.1 0.1 Spain 3.1 3.0 Sweden 2.6 2.7 Switzerland 8.6 9.0 United Kingdom 15.2 15.2 Index Equivalents 1.8 2.6 Forward Contracts 0.0 0.0 Other Net Assets (Liabilities) 0.3 0.3 100.0 100.0

(H) Interest in Unconsolidated Structured Entities (in 000s) (Note 3) The table below illustrates the Fund’s investment details in the underlying funds as at December 31, 2017 and 2016.

Fair Value Underlying of Fund’s Fund’s Underlying Funds Investment Net Assets December 31, 2017 iShares MSCI EAFE ETF $ 12,285 $ 106,588,64

December 31, 2016 iShares MSCI EAFE ETF $ 13,743 $ 80,116,103

December 31, 2017 18 Annual Financial Statements TD International Index Fund Fund-Specific Notes to the Financial Statements

(I) Offsetting of Financial Assets and Liabilities (in 000s) (Note 3) The following table presents the recognized financial instruments that are offset, or subject to 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, 2017 and 2016 and shows in the Net Amount column what the impact would be on the Fund’s Statements of Financial Position if all set-off rights were exercised.

Related Amounts Not Amounts Net Amounts Set-Off on the Statements Gross Amounts Set-Off on the Presented on of Financial Position of Recognized Statements the Statements Financial Assets of Financial of Financial Financial (Liabilities) Position Position Instruments Cash Net Amount December 31, 2017 Derivative Assets $ 5 $ 0 $ 5 $ 0 $ 0 $ 5 Derivative Liabilities 0 0 0 0 0 0

December 31, 2016 Derivative Assets $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Derivative Liabilities (2) 0 (2) 0 0 (2)

THE FUND IS NOT SPONSORED, ENDORSED, SOLD OR PROMOTED ALTHOUGH MSCI SHALL OBTAIN INFORMATION FOR INCLUSION BY MSCI INC. (“MSCI”), ANY OF ITS AFFILIATES, ANY OF ITS INFOR- IN OR FOR USE IN THE CALCULATION OF THE MSCI INDEXES FROM MATION PROVIDERS OR ANY OTHER PARTY INVOLVED IN, OR SOURCES THAT MSCI CONSIDERS RELIABLE, NONE OF THE MSCI RELATED TO, COMPILING, COMPUTING OR CREATING ANY MSCI PARTIES WARRANTS OR GUARANTEES THE ORIGINALITY, ACCURACY INDEXES (COLLECTIVELY, THE “MSCI PARTIES”). THE FUND HAS NOT AND/OR THE COMPLETENESS OF ANY MSCI INDEX OR ANY DATA BEEN PASSED ON BY ANY OF THE MSCI PARTIES AS TO ITS LEGALITY INCLUDED THEREIN. NONE OF THE MSCI PARTIES MAKES ANY OR SUITABILITY WITH RESPECT TO ANY PERSON OR ENTITY. NONE WARRANTY, EXPRESS OR IMPLIED, AS TO RESULTS TO BE OBTAINED OF THE MSCI PARTIES MAKES ANY WARRANTIES OR BEARS ANY BY THE ISSUER OF THE FUND, UNITHOLDERS OF THE FUND, OR ANY LIABILITY WITH RESPECT TO THE FUND. WITHOUT LIMITING THE OTHER PERSON OR ENTITY FROM THE USE OF ANY MSCI INDEX OR FORE GOING, NONE OF THE MSCI PARTIES MAKES ANY REPRESEN - ANY DATA INCLUDED THEREIN. NONE OF THE MSCI PARTIES SHALL TATION OR WARRANTY, EXPRESS OR IMPLIED, TO THE UNITHOLDERS HAVE ANY LIABILITY FOR ANY ERRORS, OMISSIONS OR INTERRUP- OF THE FUND OR ANY MEMBER OF THE PUBLIC REGARDING THE TIONS OF OR IN CONNECTION WITH ANY MSCI INDEX OR ANY DATA ADVISABILITY OF INVESTING IN FUNDS GENERALLY OR IN THE FUND INCLUDED THEREIN. FURTHER, NONE OF THE MSCI PARTIES MAKES PARTICULARLY OR THE ABILITY OF ANY MSCI INDEXES TO TRACK ANY EXPRESS OR IMPLIED WARRANTIES OF ANY KIND, AND THE MSCI CORRESPONDING STOCK MARKET PERFORMANCE. MSCI OR ITS PARTIES HEREBY EXPRESSLY DISCLAIM ALL IMPLIED WARRANTIES AFFILIATES ARE THE LICENSORS OF CERTAIN TRADEMARKS, SERVICE (INCLUDING, WITHOUT LIMITATION, THE IMPLIED WARRANTIES OF MARKS AND TRADE NAMES AND OF THE MSCI INDEXES WHICH ARE MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE) WITH DETERMINED, COMPOSED AND CALCULATED BY MSCI WITHOUT RESPECT TO ANY MSCI INDEX AND ANY DATA INCLUDED THEREIN. REGARD TO THE FUND, THE ISSUER OR THE UNITHOLDERS OF THE WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT SHALL FUND OR ANY OTHER PERSON OR ENTITY. NONE OF THE MSCI ANY OF THE MSCI PARTIES HAVE ANY LIABILITY FOR ANY DIRECT, PARTIES HAS ANY OBLIGATION TO TAKE THE NEEDS OF THE ISSUER INDIRECT, SPECIAL, PUNITIVE, CONSEQUENTIAL OR ANY OTHER OR THE UNITHOLDERS OF THE FUND OR ANY OTHER PERSON OR DAMAGES (INCLUDING LOST PROFITS) EVEN IF NOTIFIED OF THE ENTITY INTO CONSIDERATION IN DETERMINING, COMPOSING OR POSSIBILITY OF SUCH DAMAGES. CALCULATING THE MSCI INDEXES. NONE OF THE MSCI PARTIES IS No purchaser, seller or unitholder of the Fund, or any other person RESPONSIBLE FOR OR HAS PARTICIPATED IN THE DETERMINATION or entity, should use or refer to any MSCI trade name, trademark or OF THE TIMING OF, PRICES AT, OR QUANTITIES OF THE FUND’S UNITS service mark to sponsor, endorse, market or promote the Fund without TO BE ISSUED OR IN THE DETERMINATION OR CALCULATION OF first contacting MSCI to determine whether MSCI’s permission is THE EQUATION BY WHICH THE FUND’S UNITS ARE REDEEMABLE required. Under no circumstances may any person or entity claim any FOR CASH. FURTHER, NONE OF THE MSCI PARTIES HAS ANY OBLIGA- affiliation with MSCI without the prior written permission of MSCI. TION OR LIABILITY TO THE ISSUER OR THE UNITHOLDERS OF THE FUND OR ANY OTHER PERSON OR ENTITY IN CONNECTION WITH THE ADMINISTRATION, MARKETING OR OFFERING OF THE FUND.

December 31, 2017 19 Annual Financial Statements nNotes to the Financial Statements 1. The Funds 3. Summary of Significant Accounting Policies

The TD Mutual Fund Trusts and TD Managed Assets Program Portfolios Financial Instruments (collectively, the “Funds” and individually, the “Fund”) are open-end The Funds recognize financial instruments at fair value upon initial mutual funds established under the laws of Ontario and governed by recognition, plus transaction costs in the case of financial instruments the Declaration of Trust, as amended from time to time. not measured at FVTPL. Regular way purchases and sales of financial instruments are recognized at their trade date. The Funds’ non-derivative The TD Managed Assets Program Portfolios invest primarily in units of investments, which are designated at FVTPL, and derivative assets and other investment funds including in units of exchange-traded funds. liabilities, which are classified as held for trading (“HFT”), are measured TD Asset Management Inc. (“TDAM”) is the manager, portfolio adviser at FVTPL. and trustee of the Funds. TDAM, TDAM USA Inc., TD Investment All other financial assets and liabilities are measured at amortized cost. Services Inc. (“TDIS”), TD Waterhouse Canada Inc. (“TDW”) and Epoch Under this method, financial assets and liabilities reflect the amount Investment Partners, Inc. (“Epoch”) are wholly-owned subsidiaries required to be received or paid, discounted, when appropriate, at the of The Toronto-Dominion Bank (“TD”). The registered address of the contract’s effective interest rate. Funds is P.O. Box 100, 66 Wellington Street West, TD Bank Tower, Toronto-Dominion Centre, Toronto, Ontario M5K 1G8. The Funds have determined that they meet the definition of an ‘investment entity’ and as a result, the Funds measure subsidiaries, The financial year-end for the Funds is December 31. The Statements of if any, at FVTPL. An investment entity is an entity that: obtains funds Financial Position are presented as at December 31, 2017 and 2016. from one or more investors for the purpose of providing them with The Statements of Comprehensive Income, Statements of Changes in investment management services; commits to its investors that its Net Assets Attributable to Holders of Redeemable Units and Statements business purpose is to invest funds solely for returns from capital of Cash Flows are presented for the periods ended December 31, 2017 appreciation, investment income, or both; and measures and evaluates and 2016. Where a Fund or series of a Fund was established during the performance of substantially all of its investments on a fair value either period, the information for that Fund or series is provided from the basis. The significant judgment that the Funds have made in determining inception date and a comparative statement has only been presented for that this definition is met is that fair value is the primary measurement any period for which that Fund was in existence as at the reporting date. attribute used to measure and evaluate the performance of substantially Each Fund’s start date as indicated in the Fund-Specific Notes to the all of the Funds’ investments. The Funds’ investments may also include Financial Statements is the date that it commenced operations or in associates and joint ventures which are designated at FVTPL. the case of a new series, the date the series was first offered and not The Funds’ outstanding redeemable units’ entitlements include a its inception date. contractual obligation to distribute any net income and net realized These financial statements were authorized for issue by TDAM on capital gains in cash (at the request of the unitholder) and therefore March 16, 2018. the ongoing redemption feature is not the Funds’ only contractual obligation. Consequently, the Funds’ outstanding redeemable units are 2. Basis of Presentation classified as financial liabilities in accordance with the requirements of These financial statements have been prepared in compliance with IAS 32, “Financial Instruments: Presentation” (“IAS 32”). The Funds’ International Financial Reporting Standards (“IFRS”) as published by obligations for Net Assets Attributable to Holders of Redeemable Units the International Accounting Standards Board (“IASB”). These financial are presented at the redemption amount. statements have been prepared under the historical cost convention, The accounting policies for measuring the fair value of the Funds’ as modified by the revaluation of financial assets and financial liabilities investments and derivatives are substantially similar to those used in (including derivative financial instruments) at fair value through profit measuring the Funds’ net asset value (“NAV”) for transactions with or loss (“FVTPL”). unitholders. The NAV is the value of the total assets of a fund less the value of its total liabilities determined, on each valuation day, in accordance with Part 14 of National Instrument 81-106, “Investment Fund Continuous Disclosure”, for the purpose of processing unitholder transactions. Net Assets Attributable to Holders of Redeemable Units, also referred to as net assets, refers to net assets calculated in accor- dance with IFRS. As at all dates presented, there were no differences between the Funds’ NAV per series unit and net assets per series unit.

December 31, 2017 20 Annual Financial Statements nNotes to the Financial Statements Fair Value Measurement (e) The Funds may enter into a forward contract to obtain exposure to Fair value is the price that would be received to sell an asset or paid a specific type of investment without actually investing directly in to transfer a liability in an orderly transaction between market partici- such investment. These contracts are valued based on the difference pants at the measurement date. The fair value of financial assets and between the contract rate and the current market rate for the liabilities traded in active markets (such as publicly traded derivatives underlying investment, at the measurement date. The unrealized gain and marketable securities) are based on quoted market prices at the or loss and the net realized gain or loss from closing out contracts close of trading on the reporting date. The Funds use the last traded are reflected in the Statements of Comprehensive Income as part of market price for both financial assets and financial liabilities where the Net Gain (Loss) on Derivatives. last traded price falls within that day’s bid-ask spread. In circumstances (f) The Funds may purchase standardized, exchange-traded futures where the last traded price is not within the bid-ask spread, TDAM contracts. Any difference between the value at the close of business determines the point within the bid-ask spread that is most representa- on the current valuation day and that of the previous valuation tive of fair value based on the specific facts and circumstances. The day is settled in cash daily and recorded in the Statements of Funds’ policy is to recognize transfers into and out of the fair value Comprehensive Income as Derivatives Income (Loss). Any amounts hierarchy levels at the end of reporting periods. receivable (payable) from settlement of futures contracts are reflected The fair value of financial assets and liabilities that are not traded in in the Statements of Financial Position as Futures Margin Receivable an active market, including over-the-counter derivatives, is determined (Payable). Short-term debt instruments as indicated in the Schedule using valuation techniques. The Funds use a variety of methods and of Investment Portfolio have been segregated and are held as margin make assumptions that are based on market conditions existing at each against the futures contracts purchased by the Funds, as applicable. reporting date. Valuation techniques include the use of comparable (g) Options contracts that are traded in exchange markets are valued recent arm’s length transactions, reference to other instruments that at their closing prices on each valuation day. The premium received are substantially the same, discounted cash flow analysis, option pricing or paid on options written or purchased is included in the cost of models and other techniques commonly used by market participants the options. Any difference between the current value of the contract and which make the maximum use of observable inputs. and the value of the contract originated is recognized as net change The valuation methodology for specific types of investments held by in unrealized appreciation/depreciation on derivatives. When options the Funds is summarized below. are closed or exercised, the difference between the premium and the amount paid or received, or the full amount of the premium (a) Securities not listed on any recognized public securities exchange if the option expires worthless, is reflected in the Statements of are valued based on available quotations from recognized dealers in Comprehensive Income as part of Net Gain (Loss) on Derivatives. The such securities, where readily available. If securities have no available cost of a security purchased will be reduced by the premium received broker-dealer bid/ask quotes, TDAM uses its own pricing model to on options when a written put option is exercised or increased by price the securities. The pricing model will generally include the the amount paid on options when a purchased option is exercised. discounted cash flow valuation approach, the use of a credit spread based on the terms of the security and the use of such credit and (h) Investments in underlying conventional mutual funds and yield analysis comparables as TDAM believes are relevant in the TD Exchange-Traded Funds are generally valued at the NAV per circumstances. Debt instruments are valued based on mid prices, series unit of the investment funds as reported by the investment where readily available. Other valuation techniques may be used, funds’ managers. as described above, where applicable. (i) The exchange-traded funds (ETFs) that are not managed by TDAM (b) Short-term debt instruments, repurchase and reverse repurchase are valued based on quoted market prices at the close of trading on agreements are valued based on quotations received from recognized the reporting date. investment dealers. Fair Value Hierarchy (c) Real return bonds are valued based on the available public The Funds classify their investments into fair value measurements quotations from recognized dealers. Changes in the inflation factor within a hierarchy that prioritizes the inputs to fair value measurement. are included in Interest for Distribution Purposes in the Statements The fair value hierarchy has the following three levels: of Comprehensive Income. Level 1 Quoted (unadjusted) prices in active markets for identical (d) The Funds may use foreign exchange forward contracts to hedge assets or liabilities; against or profit from fluctuations in foreign exchange rates. These Level 2 Inputs other than quoted prices that are observable for contracts are valued on each valuation day based on the difference the asset or liability either directly (that is, as prices) or between the contract rates and the current forward rates at the indirectly (that is, derived from prices); and measurement date applied to the contracts’ notional amount. The Level 3 Inputs that are not based on observable market data net change in unrealized appreciation or depreciation and the net (that is, unobservable inputs). realized gain or loss from closing out contracts are reflected in the Statements of Comprehensive Income as part of Net Gain (Loss) on Derivatives.

December 31, 2017 21 Annual Financial Statements nNotes to the Financial Statements All fair value measurements are recurring. The carrying values of Cash, The Funds may invest in underlying funds whose investment objectives Subscriptions Receivable, Interest Receivable, Dividends Receivable, range from achieving short- to long-term income and capital growth Receivable for Investments Sold, Payable for Investments Purchased, potential. The Funds’ interests in these securities as at December 31, Redemptions Payable, Distributions Payable, Accrued Liabilities and the 2017 and 2016 are included at their fair value in the Statements of Funds’ obligation for Net Assets Attributable to Holders of Redeemable Financial Position, which represent the Funds’ exposure in these Units approximate their fair values due to their short-term nature. underlying funds. The Funds do not provide and have not committed to provide any additional significant financial or other support to the Fair values are classified as Level 1 when the related security or underlying funds. The change in fair value of each of the underlying funds derivative is actively traded and a quoted price is available. If an during the reporting periods is included in Net Change in Unrealized instrument classified as Level 1 subsequently ceases to be actively Appreciation/Depreciation in the Statements of Comprehensive Income traded, it is transferred out of Level 1. In such cases, instruments in Net Gain (Loss) on Investments. Additional information on the Funds’ are reclassified into Level 2, unless the measurement of its fair value interest in underlying funds, where applicable, is provided in the Fund- requires the use of significant unobservable inputs, in which case Specific Notes to the Financial Statements. it is classified as Level 3. The TD Mutual Fund Trusts may also invest in mortgage-related and other The hierarchy gives the highest priority to unadjusted quoted prices in asset-backed securities that directly or indirectly represent a participation active markets for identical assets or liabilities (Level 1) and the lowest in, or are secured by and payable from, mortgage loans on real property. priority to unobservable inputs (Level 3). Mortgage-related securities are created from pools of residential or The classification within the hierarchy is based on the lowest level input commercial mortgage loans, including mortgage loans made by savings that is significant to the fair value measurement. For this purpose, the and loan institutions, mortgage bankers, commercial banks and others. significance of an input is assessed against the fair value measurement The debt and equity securities issued by these issuers may include in its entirety. If a fair value measurement uses observable inputs that tranches with varying levels of subordination. These Funds may also require significant adjustment based on unobservable inputs, that invest in senior notes that have a first lien on assets and have minimum measurement is a Level 3 measurement. Assessing the significance of exposure to junior or subordinate tranches. These securities may provide a particular input to the fair value measurement in its entirety requires a monthly payment which consists of both interest and principal judgment, considering factors specific to the asset or liability. payments. Other asset-backed securities are created from many types of assets, including auto loans, credit card receivables, home equity loans, The determination of what constitutes ‘observable’ requires significant and student loans. judgment. Observable data is considered to be that market data that is readily available, regularly distributed or updated, reliable and verifiable, As at December 31, 2017 and 2016, the fair value of mortgage-related not proprietary, and provided by independent sources that are actively and other asset-backed securities of these Funds, where applicable, is involved in the relevant market. disclosed as part of the Investments in the Statements of Financial Position. This amount represents the maximum exposure to losses at TDAM has a Global Fair Value Committee which oversees the perform- that date. The change in fair value of mortgage-related and other ance of the fair value measurements included in the financial statements asset-backed securities during the reporting periods are included in the of the Funds, including any Level 3 measurements. TDAM utilizes a Net Change in Unrealized Appreciation/Depreciation in the Statements variety of methods (as listed in the Fair Value Measurement section) of Comprehensive Income in Net Gain (Loss) on Investments. in determining the fair value of securities classified as Level 3. The committee also meets quarterly to perform reviews of the valuations Translation of Foreign Currencies of investments held by the Funds. A Fund’s functional currency, as disclosed in the Fund-Specific Notes to the Financial Statements, represents the currency that TDAM views to The classification of the Funds’ financial instruments within the fair value most faithfully represent the economic effects of the Fund’s underlying hierarchy as at December 31 2017 and 2016, and any transfers between transactions, events and conditions taking into consideration how units levels at end of the reporting period as a result of changes in the lowest are issued or redeemed and how returns are measured. Foreign currency level input that is significant to the fair value measurement are disclosed transactions are translated into the functional currency using the in the Fund-Specific Notes to the Financial Statements, where applicable. exchange rates prevailing at the dates that transactions occur. Realized Interest in Unconsolidated Structured Entities foreign exchange gains and losses on income are recognized in invest - A structured entity is an entity that has been designed so that voting ment income in the Statements of Comprehensive Income. or similar rights are not the dominant factor in deciding who controls the entity, such as when any voting rights relate to administrative tasks only and the relevant activities are directed by means of contractual arrangements. TDAM has determined that all of the underlying funds in which the Funds invest are unconsolidated structured entities. In making this determination, TDAM evaluated the fact that decision making about underlying funds’ activities is generally not governed by voting or similar rights held by the Funds and other investors in any underlying funds.

December 31, 2017 22 Annual Financial Statements nNotes to the Financial Statements Assets and liabilities denominated in a foreign currency are translated Impairment of Financial Assets into the functional currency using the exchange rate prevailing at the At each reporting date, the Funds assess whether there is objective measurement date. Foreign exchange gains and losses on the sale of evidence that a financial asset at amortized cost is impaired. If such investments are included in Net Realized Gain (Loss). Unrealized foreign evidence exists, the Funds recognize an impairment loss as the difference exchange gains and losses on investments held and other assets and between the amortized cost of the financial asset and the present value liabilities are included in Net Change in Unrealized Appreciation/ of the estimated future cash flows, discounted using the instrument’s Depreciation. Realized and unrealized foreign exchange gains and losses original effective interest rate. Impairment losses on financial assets at relating to cash are presented as Foreign Exchange Gain (Loss) on Cash amortized cost are reversed in subsequent periods if the amount of the in the Statements of Comprehensive Income. loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognized. Offsetting Financial Assets and Liabilities Financial assets and liabilities are offset and the net amount reported Valuation of Series Units in the Statements of Financial Position where the Funds have a legally TDAM generally calculates the NAV for each series of the Funds as at enforceable right to offset the recognized amounts and there is an 4 p.m. Eastern Time on each day that the Toronto Stock Exchange is intention to settle on a net basis or realize the asset and settle the open for trading. However, in some unforeseen circumstances, the series liability simultaneously. In all other situations they are presented on a NAV per unit may be calculated at another time. gross basis. In the normal course of business, the Funds may enter into The NAV is calculated, for processing subscription, switch, conversion various master netting agreements or other similar arrangements that or redemption orders of series units, for each series of units of the do not meet the criteria for offsetting in the Statements of Financial Funds by taking the series’ proportionate share of the individual Fund’s Position but still allow for the related amounts to be set-off in certain common assets less that series’ proportionate share of its common circumstances, such as bankruptcy or the termination of the contracts. liabilities and deducting from this amount all liabilities that relate solely Offsetting information, where applicable, is presented in the Fund- to that specific series. Specific Notes to the Financial Statements. The Net Assets Attributable to Holders of Redeemable Units – Per Series Reverse Repurchase Agreements Unit is determined by dividing the total Net Assets Attributable to Certain Funds may enter into reverse repurchase transactions. In a Holders of Redeemable Units of each series of the Funds by the total reverse repurchase transaction, a Fund buys a security at one price from number of units outstanding of that series at the reporting date. a third party and agree to sell the same security back to the same party at a specified price on an agreed future date and the difference is Income Recognition included as part of Net Gain (Loss) on Investments in the Statements Interest for Distribution Purposes as shown in the Statements of of Comprehensive Income. Comprehensive Income includes interest income from cash and the coupon interest on debt instruments accounted for on an accrual basis. The risk with these types of transactions is that the other party may Interest Receivable is disclosed in the Statements of Financial Position default under the agreement or go bankrupt. These risks are reduced by based on the debt instruments’ stated rates of interest. The Funds do requiring the other party to provide collateral to the Fund. The value of not amortize premiums paid or discounts received on the purchase of the collateral has to be at least 102 percent of the market value of the debt securities except for zero coupon bonds which are amortized. security and the collateral is marked to market on each business day. The type of securities received and related collateral held by the Fund, Dividend income from ETFs and distributions from any underlying mutual where applicable, are listed in the Schedule of Investment Portfolio. funds are recognized on the ex-dividend and ex-distribution date, respectively. Dividends received from ETFs are recognized and presented Cash in the financial statements based on the nature of the underlying Cash is comprised of deposits with financial institutions. Bank components such as interest income, dividend income, capital gains overdrafts are shown under Current Liabilities in the Statements of and return of capital. Financial Position. The TD Mutual Fund Trusts may engage in securities lending pursuant Receivable for Investments Sold/Payable for Investments Purchased to the terms of an agreement which includes restrictions as set out in Receivable for Investments Sold and Payable for Investments Purchased Canadian securities legislation. The income earned from securities lend- represent trades that have been contracted for but not yet settled or ing, where applicable, is included in the Statements of Comprehensive delivered on the Statements of Financial Position dates. Income as it is earned. The fair value of the securities loaned and fair Margin value of the collateral held is determined daily. The details of securities Margin accounts represent margin deposits held with brokers in respect lending income, aggregate values of securities on loan and related of open exchange-traded futures contracts. collateral held are provided in the Fund-Specific Notes to the Financial Statements, where applicable.

December 31, 2017 23 Annual Financial Statements nNotes to the Financial Statements Investment Transactions and Transaction Costs 4. Critical Accounting Estimates and Judgments For the purposes of calculating realized and unrealized gains and losses The preparation of financial statements requires management to use from investment transactions, the cost of each investment security is judgment in applying its accounting policies and to make estimates determined on an average cost basis, excluding transactions costs. and assumptions about the future. The following discusses the most Transaction costs, such as brokerage commissions, incurred by the Funds significant accounting judgments and estimates that the Funds have in the purchase and sale of investments at fair value are recognized in made in preparing the financial statements: the Statements of Comprehensive Income in the period incurred. Fair Value Measurement of Derivatives and Securities Commissions paid, where applicable, are included in the Fund-Specific Not Quoted in an Active Market Notes to the Financial Statements. No transaction costs are incurred The Funds may hold financial instruments that are not quoted in active when the Funds invest in underlying mutual funds. However, the markets, including derivatives. As described in Note 3, the use of underlying funds’ investments may be subject to transaction costs. valuation techniques for financial instruments and derivatives that are Allocation of Income and Expenses, Realized not quoted in an active market requires TDAM to make assumptions and Unrealized Gains (Losses) that are based on market conditions existing as at the reporting date of Expenses (excluding interest charges and portfolio transaction costs) are the financial statements. Changes in assumptions about these factors accrued daily, separately for each series. Interest charges and portfolio could affect the reported fair values of financial instruments. Refer to the transaction costs along with income, gains and losses, are allocated to Fund-Specific Notes to the Financial Statements for further information each series based on their respective Net Assets Attributable to Holders about the fair value measurement of the Funds’ financial instruments, of Redeemable Units. where applicable.

Increase (Decrease) in Net assets Attributable to Holders Classification and Measurement of Investments of Redeemable Units – Per Series Unit and Application of the Fair Value Option The Increase (Decrease) in Net Assets Attributable to Holders of In classifying and measuring financial instruments held by the Funds, Redeemable Units – Per Series Unit is calculated by dividing the Increase TDAM is required to make significant judgments about whether or not (Decrease) in Net Assets Attributable to Holders of Redeemable Units the business of the Funds is to invest on a total return basis for the of each series by the weighted average units outstanding of that series purpose of applying the fair value option for financial assets under for the period, except when a series was established during a reporting IAS 39. The most significant judgments made include the determination period, in which case the Weighted Average Units Outstanding for the that certain investments are HFT and that the fair value option can be Period – Per Series is calculated from the start date. applied to those which are not.

Accounting Standards Issued but Not Yet Adopted Investment Entity The final version of IFRS 9, “Financial Instruments” (“IFRS 9”) was In determining whether a Fund meets the definition of an investment issued by the IASB in July 2014 and will replace International Accounting entity, TDAM may be required to make significant judgments about Standards (“IAS”) 39, “Financial Instruments: Recognition and whether a Fund has the typical characteristics of an investment entity. Measurement” (“IAS 39”). IFRS 9 introduces a model for classification Each Fund may hold only one investment, an underlying fund (or have and measurement, a single, forward-looking ‘expected loss’ impairment only one investor or have investors that are its related parties), however, model and a substantially reformed approach to hedge accounting. consistent with the investment entity definition, each Fund primarily obtains funds from one or more investors for the purpose of providing The new single, principle based approach for determining the classifi - investment management services, commits to its investors that the cation of financial assets is driven by cash flow characteristics and the business purpose is to invest the funds solely for returns from capital business model in which an asset is held. The new model also results appreciation, investment income or both, and measures and evaluates in a single impairment model being applied to all financial instruments, the performance of its investments on a fair value basis. which will require more timely recognition of expected credit losses. It also includes changes in respect of own credit risk in measuring liabilities elected to be measured at fair value, so that gains caused by the deterioration of an entity’s own credit risk on such liabilities are no longer recognized in profit or loss. IFRS 9 is effective for annual periods beginning on or after January 1, 2018. The manager has assessed the impact of IFRS 9 by analyzing the current business model of the Funds and does not anticipate significant changes to the valuation of the Funds’ financial instruments. As a result, the adoption of IFRS 9 is not expected to have a material impact on the Fund’s financial statements.

December 31, 2017 24 Annual Financial Statements nNotes to the Financial Statements 5. Redeemable Units S-Series: Offered to investors who wish to receive a regular monthly For TD Mutual Fund Trusts and TD Managed Assets Program Portfolios, cash flow from the Funds, through fee-based financial each individual series of units is sold under differing purchase options advisors or dealer-sponsored “wrap accounts”. This series and may have higher or lower management fees based on their specific may also be offered to other investors who pay an annual attributes, as summarized below, reflecting the extent of the investment fee to their dealer instead of transactional sales charges. Monthly distributions may consist of net income, net realized advice provided. capital gains, and/or a return of capital. TD Mutual Fund Trusts Premium Offered to large investors, through fee-based financial Each TD Mutual Fund Trust is authorized to issue an unlimited number of F-Series: advisors or dealer-sponsored “wrap accounts”, and others units of multiple series that rank equally and are available for sale under who pay an annual fee to their dealer instead of trans - a single simplified prospectus. In addition, each of these Funds is also actional sales charges. For this series, investors must make authorized to issue an unlimited number of units of multiple series to be the required minimum investment, as determined by TDAM sold under a confidential offering memorandum or other separate from time to time. simplified prospectus. The various series that may be offered by these PS Series: Offered to large investors who wish to receive a regular Funds are as described below. monthly cash flow from the Funds, through fee-based financial advisors or dealer-sponsored “wrap accounts”, Investor Series: Offered on a no-load basis to investors. and others who pay an annual fee to their dealer instead H-Series: Offered on a no-load basis to investors who wish to receive of transactional sales charges. For this series, investors a regular monthly cash flow from the Funds. Monthly must make the required minimum investment, as determined distributions may consist of net income, net realized capital by TDAM from time to time. Monthly distributions may gains and/or a return of capital. consist of net income, net realized capital gains, and/ a Premium Series: Offered on a no-load basis to large investors and others return of capital. who make the required minimum investment, as determined W-Series: Offered to investors, through certain wealth management by TDAM from time to time. businesses of TD Bank Group, including certain divisions K-Series: Offered on a no-load basis to large investors and others of TDW, or other dealers authorized by TDAM, who pay who make the required minimum investment, as determined an annual fee to their dealer instead of transactional by TDAM from time to time, and who wish to receive a sales charges. regular monthly cash flow from the Funds. Monthly distribu- Private Series tions may consist of net income, net realized capital gains, and Private-EM Offered on a no-load basis to large investors who make the and/or a return of capital. Series: required minimum investment as determined by TDAM, and e-Series: Offered on a no-load basis to investors who want to have entered into a Private Series agreement with TDAM. complete their transactions electronically. Institutional Offered on a no-load basis to large investors, such as group D-Series: Offered on a no-load basis to investors who want to Series: savings plans and others who make the required minimum complete their transactions through TD Direct Investing, investment, as determined by TDAM from time to time. a division of TDW, or other discount brokers. Q-Series: Offered on a no-load basis to large investors such as group Advisor Series: Offered to investors who seek investment advice and want savings plans and others who wish to receive a regular the option of transacting on a front-end load, back-end load, monthly cash flow from the Funds, and who make the low-load or low-load-2 basis. required minimum investment, as determined by TDAM from time to time. Monthly distributions may consist of net T-Series: Offered to investors who seek investment advice; want the income, net realized capital gains and/or a return of capital. option of transacting on a front-end load, back-end load, low-load or low-load-2 basis; and who wish to receive a C-Series Offered on a no-load basis to large investors who make regular monthly cash flow from the Funds. Monthly distribu- the required minimum investment as determined by TDAM tions may consist of net income, net realized capital gains and have entered into a C-Series agreement with TDAM. and/or a return of capital. O-Series: Offered on a no-load basis to large investors who make F-Series: Offered to investors, through fee-based financial advisors the required minimum investment as determined by TDAM, or dealer-sponsored “wrap accounts”, and others who and have entered into an O-Series agreement with TDAM. pay an annual fee to their dealer instead of transactional sales charges.

December 31, 2017 25 Annual Financial Statements nNotes to the Financial Statements TD Managed Assets Program Portfolios within a Fund in the Statements of Changes in Net Assets Attributable to Holders of Redeemable Units. However, conversions between series Each TD Managed Assets Program Portfolio is authorized to issue an within a Fund are excluded from Proceeds from Issuances of Redeemable unlimited number of units of multiple series that rank equally and Units and Amounts Paid on Redeemable Units, Net of Early Redemption are available for sale under a single simplified prospectus. The various Fees in the Statements of Cash Flows. series that may be offered by these Funds are as described below. 6. Related Party Transactions Investor Series: Offered on a no-load basis to investors. H-Series: Offered on a no-load basis to investors who wish to receive Management Fees a regular monthly cash flow from the Funds. Monthly (a) TD Mutual Fund Trusts distributions may consist of net income, net realized capital In consideration for the provision of management, distribution and port- gains and/or a return of capital. folio management services and oversight of any portfolio sub-advisory services provided to the TD Mutual Fund Trusts, TDAM receives an annual Premium Series: Offered on a no-load basis to large investors and others management fee in respect of certain series of these Funds. The manage- who make the required minimum investment, as determined ment fee is calculated and accrued on a daily basis for each series based by TDAM from time to time. on the NAV of that series and paid monthly to TDAM. Where these Funds K-Series: Offered on a no-load basis to large investors and others invest in any underlying funds, there are fees and expenses payable by who make the required minimum investment, as determined the underlying funds in addition to those paid by the Funds. However, by TDAM from time to time, and who wish to receive a there is no duplication of management fees paid to TDAM or its affiliates regular monthly cash flow from the Funds. Monthly distribu- if these Funds invest in underlying funds that are managed by TDAM. tions may consist of net income, net realized capital gains, and/or a return of capital. No management fees are charged with respect to Private Series and e-Series: Offered on a no-load basis to investors who want to O-Series units. Instead, unitholders in Private Series and O-Series units complete their transactions electronically. may be charged a fee directly by TDAM. D-Series: Offered on a no-load basis to investors who want to Prior to July 27, 2017, the simplified prospectus disclosed the maximum complete their transactions through TD Direct Investing, annual management fee rate that TDAM could charge for each series of a division of TDW, or other discount brokers. units of the TD Mutual Fund Trusts (so the actual management fee being Advisor Series: Offered to investors who seek investment advice and want charged to these Funds might have been less than the maximum annual the option of transacting on a front-end load, back-end load, management fee rate). TDAM was able to charge the maximum annual low-load or low-load-2 basis. management fee without notice to unitholders. Effective July 27, 2017, T-Series: Offered to investors who seek investment advice; want the the simplified prospectus discloses a specified annual management fee option of transacting on a front-end load, back-end load, rate. Where TDAM chooses to charge a management fee rate below the low-load or low-load-2 basis; and who wish to receive a specified annual management fee rate, the difference represents a waiver regular monthly cash flow from the Funds. Monthly distribu- of management fees and is included as Waived Expenses in the tions may consist of net income, net realized capital gains Statements of Comprehensive Income. TDAM may waive all or a portion and/or a return of capital. of the management fees charged to these Funds, which may be discontinued at any time by TDAM at its discretion without notice to F-Series: Offered to investors, through fee-based financial advisors or dealer-sponsored “wrap accounts”, and others who unitholders. Detailed information on the management fees of these pay an annual fee to their dealer instead of transactional Funds is provided in the Fund-Specific Notes to the Financial Statements. sales charges. (b) TD Managed Assets Program Portfolios (I) TD MANAGED ASSETS PROGRAM PORTFOLIOS S-Series: Offered to investors who wish to receive a regular monthly (Excluding TD Managed ETF Portfolios) cash flow from the Funds, through fee-based financial In consideration for the provision of management, distribution and advisors or dealer-sponsored “wrap accounts”. This series portfolio management services to the TD Managed Assets Program may also be offered to other investors who pay an annual Portfolios (other than the TD Managed ETF Portfolios), each series of fee to their dealer instead of transactional sales charges. these Funds pay TDAM an annual management fee. The management fee Monthly distributions may consist of net income, net realized capital gains, and/or a return of capital. is calculated and accrued on a daily basis for each series based on the NAV of that series and paid monthly to TDAM. Where these Funds invest Units of TD Mutual Fund Trusts and TD Managed Assets Program in any underlying funds, there are fees and expenses payable by the Portfolios are redeemable at the option of the unitholder in accordance underlying funds in addition to those paid by the Funds. However, there with the provisions of the Declaration of Trust. Units of these Funds is no duplication of management fees paid to TDAM or its affiliates if are issued or redeemed on a daily basis at the NAV per series unit next these Funds invest in underlying funds that are managed by TDAM. determined after the subscription, switch, conversion order or redemp- tion request, respectively, is received by TDAM. Subscriptions and redemptions include units converted from one series to another series

December 31, 2017 26 Annual Financial Statements nNotes to the Financial Statements Prior to October 26, 2017, the simplified prospectus disclosed the No administration fee is charged with respect to other series of the maximum annual management fee rate that TDAM could charge for each TD Mutual Fund Trusts. series of units of these Funds (so the actual management fee being (B) TD Managed Assets Program Portfolios charged to these Funds might have been less than the maximum annual Except for the TD Managed ETF Portfolios, no administration fee is management fee rate). Effective October 26, 2017, the simplified charged to the TD Managed Assets Program Portfolios. For the prospectus discloses a specified annual management fee rate. Where TD Managed ETF Portfolios, in consideration for paying certain TDAM chooses to charge a management fee rate below the specified operating expenses, TDAM is paid an annual administration fee with annual management fee rate, the difference represents a waiver of respect to D-Series of the Funds. The administration fee includes management fees and is included as Waived Expenses in the Statements recordkeeping and communication costs, custodial costs, certain of Comprehensive Income. TDAM may waive all or a portion of the legal fees, audit fees, regulatory filing fees and bank charges. The management fees being charged to these Funds, which may be administration fee is calculated and accrued on a daily basis based on discontinued at any time by TDAM at its discretion without notice to the NAV of D-Series and paid monthly to TDAM. Annual administration unitholders. Detailed information on the management fees of these fees for D-Series of the Funds are provided in the Fund-Specific Notes Funds is provided in the Fund-Specific Notes to the Financial Statements. to the Financial Statements. (II) TD MANAGED ETF PORTFOLIOS Operating Expenses In consideration for the provision of management, distribution and port- (A) Fund’s Independent Review Committee (“IRC”) folio management services to the TD Managed ETF Portfolios, each series TDAM is responsible for management of the Funds’ investment portfolio, of these Funds pay TDAM an annual management fee. The management including the making of decisions relating to the investment of the fee is calculated and accrued on a daily basis for each series based on Funds’ assets. the NAV of that series and paid monthly to TDAM. TDAM has established an IRC in respect of the Funds and the underlying Where a TD Managed ETF Portfolio invests in any underlying TD ETFs, funds managed by TDAM. The IRC acts as an impartial and independent there are fees and expenses payable by the underlying TD ETFs in committee to review and provide recommendations or, if appropriate, addition to those paid by the Funds. However, there is no duplication approvals respecting any transactions in which TDAM may have a conflict of management fees paid to TDAM or its affiliates. TDAM may waive of interest. all or a portion of the management fees being charged to these Funds, which may be discontinued at any time by TDAM at its discretion The IRC has approved standing instructions to permit the Funds and/or without notice to unitholders. Detailed information on the management the underlying funds managed by TDAM to enter into the following fees of these Funds is provided in the Fund-Specific Notes to the securities transactions: Financial Statements. (a) trades in securities of TD or any affiliate or associate thereof; Administration Fees (b) investments in the securities of an issuer where TD Securities Inc., (A) TD Mutual Fund Trusts TDW, or any other affiliate of TDAM (a “Related Dealer”) acted In consideration for paying certain operating expenses, TDAM is paid an as an underwriter during the distribution of such securities and annual administration fee with respect to certain series of the TD Mutual the 60-day period following the completion of the distribution of Fund Trusts. The administration fee includes recordkeeping and commu - the underwritten securities; nication costs, custodial costs, certain legal fees, audit fees, regulatory (c) purchases or sales of securities of an issuer from or to another filing fees and bank charges. The administration fee is calculated investment fund or discretionary managed account managed by and accrued on a daily basis for each series based on the NAV of the TDAM; and applicable series and paid monthly to TDAM. Annual administration fees (d) purchases of securities from or sales of securities to a Related Dealer, for each series of these Funds, where applicable, are provided in the where it acted as principal. Fund-Specific Notes to the Financial Statements. Investments in securities of TD, interests in underlying funds managed by The administration fee is payable in respect of Investor Series, H-Series, TDAM, or investments in any affiliates that were held by the Funds at the D-Series, Advisor Series and T-Series of the TD Mutual Fund Trusts, as end of the reporting period are disclosed in the Schedule of Investment applicable, other than the money market funds, TD Ultra Short Term Bond Portfolio and/or the Fund-Specific Notes to the Financial Statements. Fund, TD Short Term Bond Fund, TD Canadian Bond Fund, TD Global The compensation and relevant expenses of IRC members were Conservative Opportunities Fund, TD Global Balanced Opportunities allocated among the investment funds managed by TDAM and disclosed Fund, the Index funds and Advisor Series units of TD U.S. Equity Portfolio. in the Statements of Comprehensive Income as Independent Review The administration fee is also payable in respect of Premium Series and Committee Fees. K-Series of the TD Mutual Fund Trusts other than TD U.S. Money Market Fund, TD Short Term Bond Fund, TD Canadian Bond Fund, TD Income Advantage Portfolio, TD Canadian Core Plus Bond Fund, TD Corporate Bond Plus Fund, TD Global Conservative Opportunities Fund and TD Global Balanced Opportunities Fund.

December 31, 2017 27 Annual Financial Statements nNotes to the Financial Statements (B) TD Mutual Fund Trusts that charged by other brokers (“soft dollars”) if they determine in good TDAM pays all of the operating expenses with respect to O-Series units faith that the commission is reasonable in relation to the order execution of the TD Mutual Fund Trusts. and research services utilized. Private Series and Private–EM Series of the TD Mutual Fund Trusts For debt instruments traded in the over the counter markets where client and Advisor Series of TD U.S. Equity Portfolio bear their respective pro brokerage commissions are not charged, soft dollars or client brokerage rata share of the operating expenses of the applicable Fund which commissions are not generated. For equities or other securities where are common to the operation of all series of the Fund as well as those client brokerage commissions are charged, the soft dollar portion of the expenses which are attributable solely to that series (which may be amount paid or payable for goods and services other than order execu- payable to TDAM or its affiliates), including IRC costs; recordkeeping tion for the Funds is not generally ascertainable. Any ascertainable soft and communication costs; custodial, legal, audit and filing fees; bank dollar value received as a percentage of total brokerage commissions charges; borrowing costs; all taxes, and costs relating to compliance paid under the soft dollar arrangement entered into by the portfolio with any new governmental and regulatory requirements. advisers or TDAM, where applicable, is disclosed in the Fund-Specific Notes to the Financial Statements. For other series of the TD Mutual Fund Trusts, TDAM pays all of the operating expenses (including services provided by TDAM or affiliates (B) TD Managed Assets Program Portfolios of TDAM), other than costs and expenses associated with: all taxes; Except for the TD Managed ETF Portfolios, these Funds did not incur any borrowing; the IRC and compliance with any new governmental and brokerage commissions during the periods ended December 31, 2017 regulatory requirements and new types of costs or expenses. Any new and 2016 to execute transactions in the underlying funds and debt types of governmental and regulatory expenses are disclosed as “Other instruments, and accordingly did not receive any investment or research Trust Fund Costs” in the Statements of Comprehensive Income. services from brokers in exchange for commissions paid by the Funds. For TD Managed ETF Portfolios, brokerage commissions paid on the (C) TD Managed Assets Program Portfolios purchase or sale of units of the underlying TD ETFs and amounts paid Except for the TD Managed ETF Portfolios, all operating expenses of the to related parties of TD for brokerage services provided to the Funds for TD Managed Assets Program Portfolios (including for services provided the period ended December 31, 2017, where applicable, are disclosed by TDAM or its affiliates) are paid for by TDAM, including cost of the in the Fund-Specific Notes to the Financial Statements. IRC; recordkeeping and communication costs; custodial, legal, audit and filing fees; bank charges; borrowing costs; and all taxes on such costs. Certain of the underlying funds have incurred brokerage commissions, a portion of which may have been received by the underlying funds’ For the TD Managed ETF Portfolios, TDAM pays certain operating investment advisers in the form of investment or research services (“soft expenses. Each TD Managed ETF Portfolio is responsible for paying dollars”). Such amounts for each of the underlying funds are disclosed in expenses associated with borrowing; the IRC and compliance with any the underlying funds’ financial statements, where ascertainable. new governmental and regulatory requirements, new types of costs or expenses and all taxes on such costs and expenses. 7. Taxation

Taxes on Expenses The Funds (except for TD Managed ETF Portfolios) qualify or intend to The Funds also pay applicable goods and services tax and harmonized qualify as mutual fund trusts under the Income Tax Act (Canada) sales tax at a blended rate to TDAM on management fees, administration (“Tax Act”), unless otherwise disclosed in the Fund-Specific notes to the fees and certain operating expenses based on the province or territory of Financial Statements. TD Managed ETF Portfolios qualify as unit trusts residence of the investors in each series of the Funds, which are included under the Tax Act. All or substantially all of the net investment income with the respective expense in the Statements of Comprehensive Income. and sufficient amounts of net capital gains realized in any period are Waived Expenses distributed to unitholders such that no income tax is payable by the TDAM, at its discretion, may waive or absorb a portion of the operating Funds, except that in certain circumstances, a Fund that is not a mutual expenses otherwise payable by the Funds. These waivers or absorptions fund trust may become liable to pay alternative minimum tax under the may be terminated at any time without notice to unitholders. The Tax Act . As a result of the distribution, the Funds have determined that amount of expenses waived or absorbed is disclosed in the Statements they are in substance not taxable and therefore, do not record income of Comprehensive Income as Waived Expenses, where applicable. taxes in the Statements of Comprehensive Income nor do they recognize any deferred tax assets or liabilities in the Statements of Financial Brokerage Commissions and Soft Dollars Position. The Funds’ capital and/or non-capital losses, where applicable, (A) TD Mutual Fund Trusts are provided in the Fund-Specific Notes to the Financial Statements. Brokerage commissions (including other transaction costs) paid on Capital losses have no expiry. Non-Capital losses can be carried forward securities transactions and amounts paid to related parties of TD for for up to twenty years. brokerage services provided to these Funds for the periods ended December 31, 2017 and 2016, where applicable, are disclosed in the The Funds currently incur withholding taxes imposed by certain Fund-Specific Notes to the Financial Statements. countries on investment income and capital gains. Such income and gains are recorded on a gross basis and the related withholding taxes Client brokerage commissions are used as payment for order execution are reported as Tax Reclaims (Withholding Taxes) in the Statements services or research services. The portfolio advisers or TDAM may select of Comprehensive Income. brokers including its affiliates, who charge a commission in excess of

December 31, 2017 28 Annual Financial Statements nNotes to the Financial Statements 8. Financial Risk Management A Fund may also enter into foreign exchange forward contracts for hedging purposes to reduce its foreign currency exposure or to establish Financial Risk Factors exposure to foreign currencies. Each Fund is exposed to a variety of financial risks: these may include market risk (including interest rate risk, currency risk, and other price A Fund’s direct exposure to currency risk, where significant, is disclosed risk), credit risk, liquidity risk and concentration risk. All investments in the Fund-Specific Notes to the Financial Statements. present a risk of loss of capital. (iii) Other Price Risk TDAM seeks to reduce financial risks by employing and overseeing Other price risk is the risk that securities will fluctuate in value because professional and experienced portfolio advisers that regularly monitor of changes in market prices (other than those arising from interest the Funds’ positions and market events and diversify investment rate risk or currency risk). TDAM seeks to reduce this risk through its portfolios within the constraints of each Fund’s investment objectives, Investment Restrictions. investment strategies and applicable TDAM policies and procedures In determining each Fund’s sensitivity impact from exposure to other (collectively referred to as “Investment Restrictions”). price risk, a historical beta may be used when applicable. Historical beta, If a Fund invests in underlying funds, TDAM seeks to reduce financial a measure of the sensitivity of a Fund’s returns to market returns, is risks by diversifying investments across the three main asset classes: generally derived from comparing 36 months of returns between a Fund money market investments for safety, bonds for income and equity and its benchmark. As such, beta inherently includes effects previously investments for growth, where applicable. Since different types of invest- reflected in the interest rate and currency risk disclosures. Historical beta ments tend to move independently from one another, positive perform- may not be representative of future beta. ance in one asset class can help offset negative performance in another, Where a Fund invests in a single underlying fund, it is exposed to thereby reducing volatility and overall risk in the long-term. indirect other price risk in the event that the underlying fund invests in The Funds are managed in accordance with their respective Investment equity securities that trade on a market. Where a Fund invests in several Restrictions. underlying funds, the exposure to other price risk includes all investments in underlying funds. (a) Market Risk (i) Interest Rate Risk A Fund’s direct exposure to other price risk, where applicable, is Interest rate risk arises from the possibility that changes in interest disclosed in the Fund-Specific Notes to the Financial Statements. rates will affect the future cash flows or the fair values of interest- Except for written options and equities sold short, the maximum risk bearing investments. resulting from financial instruments is the fair value of the financial A Fund’s exposure to interest rate risk is concentrated in its investments instruments as presented in the Statements of Financial Position. Possible in debt instruments (such as bonds and debentures) and interest rate losses from written options and equities sold short can be unlimited. derivative instruments, if any. Short-term investments, currencies and (b) Credit Risk other assets and liabilities are short-term in nature and/or non-interest Credit risk is the risk that one party to a financial instrument will cause bearing and not subject to significant amounts of risk due to fluctuations a financial loss to the other party by failing to discharge an obligation. in the prevailing levels of market interest rates. Where applicable, a Fund’s main credit risk concentration is in debt If a Fund invests in underlying funds, it is exposed to indirect interest instruments and derivative instruments it holds. A Fund’s exposure to rate risk to the extent of the interest-bearing financial instruments credit risk is the risk that an issuer of investments or a counterparty to held by the underlying funds. A Fund’s sensitivity exposure to interest derivative instruments will be unable to pay amounts in full when due. rate risk, where significant, is disclosed in the Fund-Specific Notes to All transactions in listed securities are settled or paid for upon delivery the Financial Statements. using approved brokers. The risk of default with a broker is considered (ii) Currency Risk minimal, as delivery of securities sold is only made once the broker has A Fund may hold assets denominated in currencies other than its received payment. Payment is made on a purchase once the securities functional currency. It is therefore exposed to currency risk, as the value have been received by the broker. The trade will fail if either party fails of the securities denominated in other currencies will fluctuate due to to meet its obligation. changes in the foreign exchange rates of those currencies in relation to A Fund may also be exposed indirectly to credit risk if it invests in such Fund’s functional currency. Where a Fund invests in any underlying underlying funds in the event that the underlying funds invest in debt funds, it is exposed to indirect currency risk in the event that the instruments and derivatives. underlying funds invest in financial instruments that are denominated in a currency other than the underlying funds’ functional currency.

December 31, 2017 29 Annual Financial Statements nNotes to the Financial Statements The Funds and the underlying funds only buy and hold short-term notes 9. Capital Risk Management with a minimum R1- Low credit rating by DBRS Limited or an equivalent Units issued and outstanding represent the capital of the Funds. rating from another recognized credit rating agency. The credit risk from The Funds do not have any specific capital requirements on the the use of counterparties for foreign exchange forward contracts is, subscription and redemption of units, other than certain minimum where applicable, minimized by: subscription requirements. Changes in a Fund’s capital during the (i) using counterparties with a minimum credit rating of A by reporting periods are reflected in the Statements of Changes in S&P Global Ratings (“SPGR”) or an equivalent rating from another Net Assets Attributable to Holders of Redeemable Units. TDAM is recognized credit rating agency; responsible for managing the capital of the Funds in accordance with (ii) limiting the term of the foreign exchange forward contracts each Fund’s investment objectives and for managing liquidity in order to a maximum of 365 days; and, to meet redemption requests. (iii) limiting the mark-to-market exposure to any one counterparty to 10 percent of the portfolio value. If applicable, the most recent financial statements of the underlying A Fund’s direct exposure to short term and/or debt instruments, by funds managed by TDAM are available, without charge, by writing to: ratings categories, where applicable, are disclosed in the Fund-Specific Notes to the Financial Statements. TD Asset Management Inc. P.O. Box 100 The TD Mutual Fund Trusts may also engage in securities lending 66 Wellington Street West transactions with counterparties that have a minimum credit rating of TD Bank Tower A by SPGR or an equivalent rating from another credit agency. The value Toronto-Dominion Centre of cash or securities held as collateral by these Funds in connection Toronto, Ontario with these transactions is at least 102 percent of the fair value of the M5K 1G8 securities loaned. The collateral and loaned securities are marked to market on each business day. The aggregate fair value of the securities loaned is limited to 50 percent of each Fund’s NAV. Information about Currency codes used throughout the report: the fair values of securities lent and collateral held and securities lending income earned, where applicable, is disclosed in the Fund-Specific Notes Currency Code Description to the Financial Statements. ARS Argentine Peso In the TD Managed Assets Program Portfolios, where applicable, the AUD Australian Dollar portfolio adviser reviews these Funds’ credit positions as part of the BRL Brazilian Real CAD/C$ Canadian Dollar investment management process. CHF Swiss Franc (c) Liquidity Risk CLP Chilean Peso CZK Czech Koruna Liquidity risk is defined as the risk that a fund may not be able to settle DEM German Deutsche Mark or meet its obligations on time or at a reasonable price. A Fund’s DKK Danish Krone exposure to this risk is concentrated in the daily cash redemptions of EGP Egyptian Pound redeemable units. The Funds primarily invest in securities that are traded EUR Euro GBP British Pound in active markets and can be readily disposed. In addition, the Funds HKD Hong Kong Dollar retain sufficient cash and cash equivalents to maintain liquidity, and HUF Hungarian Forint have the ability to borrow up to 5 percent of their respective NAV for IDR Indonesian Rupiah the purpose of funding redemptions. INR Indian Rupee ILS Israeli Shekel The contractual maturities analysis for a Fund’s financial liabilities, JOD Jordanian Dinar where applicable, is disclosed in the Fund-Specific Notes to the JPY Japanese Yen KRW South Korean Won Financial Statements. LKR Sri Lanka Rupee (d) Concentration Risk MAD Moroccan Dirham MYR Malaysian Ringgit Concentration risk arises as a result of the concentration of exposures NOK Norwegian Krone within the same category, whether it is geographical location, product NZD New Zealand Dollar type or industry sector. A Fund’s concentration risk is disclosed in the PHP Philippine Peso Fund-Specific Notes to the Financial Statements. PKR Pakistan Rupee PLN Polish Zloty RON Romanian Leu SEK Swedish Krona SGD Singapore Dollar THB Thai Baht TRY New Turkish Lira TWD New Taiwan Dollar USD/US$ United States Dollar ZAR South African Rand

December 31, 2017 30 Annual Financial Statements For Funds with references to FTSE TMX Canada indices: FTSE TMX Global Debt Capital Markets Inc. 2018 “FTSE®” is a trade mark of FTSE International Ltd and is used under licence. “TMX” is a trade mark of TSX Inc. and is used under licence. All rights in the FTSE TMX Global Debt Capital Markets Inc.’s indices and/or FTSE TMX Global Debt Capital Markets Inc.’s ratings vest in FTSE TMX Global Debt Capital Markets Inc. and/or its licensors. Neither FTSE TMX Global Debt Capital Markets Inc. nor its licensors accept any liability for any errors or omissions in such indices and/or ratings or underlying data. No further distribution of FTSE TMX Global Debt Capital Markets Inc.’s data is permitted without FTSE TMX Global Debt Capital Markets Inc.’s express written consent.

TD Mutual Funds, TD Pools and the TD Managed Assets Program portfolios are managed by TD Asset Management Inc., a wholly-owned subsidiary of The Toronto-Dominion Bank and are available through authorized dealers. Epoch Investment Partners, Inc. (“Epoch”) is a wholly-owned subsidiary of The Toronto-Dominion Bank and an affiliate of TD Asset Management. TD Asset Management operates in Canada through TD Asset Management, Inc. and in the U.S. through TDAM USA Inc. All trademarks are the property of their respective owners. ® The TD logo and other trade-marks are the property of The Toronto-Dominion Bank.

December 31, 2017 31 Annual Financial Statements