2017 Annual Financial Statements

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2017 Annual Financial Statements 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 on the financial statements. The auditor’s report is included on the follow ing page of this annual report. On behalf of TDAM, manager of the Funds. Bruce Cooper 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 manage ment 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
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