TD Diversified Monthly Income Fund - TD Asset Management · The accompanying financial statements...

TD Diversified Monthly Income Fund

(03/20)532032

for the period ended December 31, 2019

TD Mutual Funds Annual Financial Statements

December 31, 2019 Annual Financial Statements

nManagement’s Responsibility for Financial Reporting

The accompanying financial statements have been prepared by TD Asset Management Inc. (“TDAM”), as manager of the TD Mutual Fund Trusts, TD Managed Assets Program Portfolios and TD Managed ETF Portfolios (collectively the “Funds” and individually the “Fund”) and approved by TDAM’s board of directors. The manager is responsible for the integrity, objectivity and reliability of the data presented. This responsibility includes selecting appropriate accounting principles and making judgments and estimates consistent with International Financial Reporting Standards as issued by the International Accounting Standards Board (“IFRS”). The manager is also responsible for the development of internal controls over the financial reporting process, which are designed to provide reasonable assurance that relevant and reliable financial informa tion is produced, and the safeguarding of all assets of the Funds.

The board of directors of TDAM is responsible for reviewing and approving the financial statements and overseeing management’s performance of its financial reporting responsibilities.

PricewaterhouseCoopers LLP is the external auditor of the Funds. The auditor has audited the financial statements in accordance with Canadian generally accepted auditing standards to enable them to express their opinion on the financial statements. The auditor’s report is included on the follow ing page of this annual report.

On behalf of TDAM, manager of the Funds.

Bruce Cooper Salma Salman Director and Director and Chief Executive Officer Chief Financial Officer March 13, 2020 March 13, 2020

1

To the Unitholders and Trustee of:


nIndependent Auditor’s Report

TD Canadian Money Market Fund TD Premium Money Market Fund TD U.S. Money Market Fund TD Ultra Short Term Bond Fund TD Short Term Bond Fund TD Canadian Bond Fund TD Income Advantage Portfolio TD Canadian Core Plus Bond Fund TD Canadian Corporate Bond Fund TD Corporate Bond Plus Fund TD U.S. Corporate Bond Fund TD Real Return Bond Fund TD Global Income Fund TD Global Core Plus Bond Fund TD Global Unconstrained Bond Fund TD High Yield Bond Fund TD Global Conservative Opportunities Fund TD Global Balanced Opportunities Fund TD Monthly Income Fund TD Tactical Monthly Income Fund TD U.S. Monthly Income Fund TD U.S. Monthly Income Fund – C$ TD Diversified Monthly Income Fund TD Global Tactical Monthly Income Fund

(formerly TD Strategic Yield Fund) TD Balanced Growth Fund TD Dividend Income Fund TD Canadian Diversified Yield Fund TD Canadian Low Volatility Fund TD Dividend Growth Fund TD Canadian Blue Chip Dividend Fund TD Canadian Large-Cap Equity Fund TD Canadian Equity Fund TD Canadian Small-Cap Equity Fund TD U.S. Risk Managed Equity Fund TD U.S. Low Volatility Fund TD North American Dividend Fund TD U.S. Dividend Growth Fund TD U.S. Blue Chip Equity Fund TD U.S. Quantitative Equity Fund TD U.S. Equity Portfolio TD North American Small-Cap Equity Fund TD U.S. Mid-Cap Growth Fund TD U.S. Small-Cap Equity Fund

TD Global Risk Managed Equity Fund TD Global Low Volatility Fund TD International Growth Fund TD Global Equity Focused Fund TD International Stock Fund TD Emerging Markets Low Volatility Fund TD Asian Growth Fund TD Emerging Markets Fund Epoch U.S. Shareholder Yield Fund Epoch U.S. Blue Chip Equity Fund Epoch U.S. Blue Chip Equity

Currency Neutral Fund Epoch U.S. Large-Cap Value Fund Epoch Global Shareholder Yield Fund Epoch Global Equity Fund Epoch International Equity Fund TD Resource Fund TD Precious Metals Fund TD Global Entertainment

& Communications Fund TD Science & Technology Fund TD Health Sciences Fund TD Canadian Bond Index Fund TD Balanced Index Fund TD Canadian Index Fund TD Dow Jones Industrial Average Index Fund TD U.S. Index Fund TD U.S. Index Currency Neutral Fund TD Nasdaq® Index Fund TD International Index Fund TD International Index

Currency Neutral Fund TD European Index Fund TD US$ Retirement Portfolio TD Retirement Conservative Portfolio TD Retirement Balanced Portfolio TD Advantage Balanced Income Portfolio TD Advantage Balanced Portfolio TD Advantage Balanced Growth Portfolio TD Comfort Conservative Income Portfolio TD Comfort Balanced Income Portfolio TD Comfort Balanced Portfolio TD Comfort Balanced Growth Portfolio TD Comfort Growth Portfolio TD Comfort Aggressive Growth Portfolio

TD Fixed Income Pool TD Risk Management Pool TD Canadian Equity Pool TD Global Equity Pool TD Tactical Pool TD Managed Income Portfolio TD Managed Income & Moderate

Growth Portfolio TD Managed Balanced Growth Portfolio TD Managed Aggressive Growth Portfolio TD Managed Maximum Equity

Growth Portfolio TD FundSmart Managed Income

& Moderate Growth Portfolio TD FundSmart Managed

Balanced Growth Portfolio TD FundSmart Managed

Aggressive Growth Portfolio TD Managed Index Income Portfolio TD Managed Index Income

& Moderate Growth Portfolio TD Managed Index Balanced

Growth Portfolio TD Managed Index Aggressive

Growth Portfolio TD Managed Index Maximum Equity

Growth Portfolio TD Managed Income ETF Portfolio TD Managed Income & Moderate Growth

ETF Portfolio TD Managed Balanced Growth ETF Portfolio TD Managed Aggressive Growth ETF Portfolio TD Managed Maximum Equity Growth

ETF Portfolio

(individually, a Fund)

2


nIndependent Auditor’s Report

Our opinion In our opinion, the accompanying December 31, 2019 financial statements of each Fund present fairly, in all material respects, the financial position of each Fund, its financial performance and its cash flows as at and for the periods indicated in note 1 in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (IFRS).

WHAT WE HAVE AUDITED

The financial statements of each Fund comprise: • the statements of financial position as at the period-end dates

indicated in note 1; • the statements of comprehensive income for the periods indicated

in note 1; • the statements of changes in net assets attributable to holders of

redeemable units for the periods indicated in note 1; • the statements of cash flows for the periods indicated in note 1; and • the notes to the financial statements, which include a summary

of significant accounting policies.

Basis for opinion We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

INDEPENDENCE

We are independent of each Fund in accordance with the ethical requirements that are relevant to our audit of the financial statements in Canada. We have fulfilled our other ethical responsibilities in accordance with these requirements.

Other information Management is responsible for the other information of each Fund. The other information comprises the Annual Management Report of Fund Performance of each Fund.

Our opinion on the financial statements does not cover the other informa-tion and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements of each Fund, our responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the financial statements of each Fund or our knowledge obtained in the audit, or otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of management and those charged with governance for the financial statements Management is responsible for the preparation and fair presentation of the financial statements of each Fund in accordance with IFRS, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing the ability of each Fund to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate any Fund or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the financial reporting process of each Fund.

Auditor’s responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole for each Fund are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Canadian generally accepted auditing standards will always detect a material misstate ment when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements of each Fund.

As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: • Identify and assess the risks of material misstatement of the financial

statements of each Fund, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control of each Fund.

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• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the ability of each Fund to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements of each Fund or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause any Fund to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the financial statements of each Fund, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Chartered Professional Accountants, Licensed Public Accountants Toronto, Ontario March 13, 2020

Independent Auditor’s Report

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nTD Diversified Monthly Income Fund

Statements of Financial Position (in 000s except per unit amounts)

as at December 31, 2019 and 2018

2019 2018

Assets Current Assets Investments $ 551,960 $ 345,357 Derivative Assets (Note 3) 1,450 22 Cash 12,558 20,764 Interest and Dividends Receivables 2,019 1,418 Subscriptions Receivable 350 171 Receivable for Investments Sold 1,089 62

569,426 367,794

Liabilities Current Liabilities Derivative Liabilities (Note 3) 20 2,060 Accrued Liabilities 39 18 Redemptions Payable 993 629 Payable for Investments Purchased 53 318

1,105 3,025

Net Assets Attributable to Holders of Redeemable Units $ 568,321 $ 364,769

Net Assets Attributable to Holders of Redeemable Units – Per Series (Note 5) Investor Series $ 417,782 $ 292,278 Advisor Series $ 49,737 $ 39,384 F-Series $ 33,752 $ 19,582 H8 Series $ 6,454 $ 4,542 FT5 Series $ 1,073 $ 40 FT8 Series $ 2,335 $ 2,430 T8 Series $ 6,353 $ 6,513 D-Series $ 33,770 N/A O-Series $ 17,065 N/A

$ 568,321 $ 364,769

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

Investor Series $ 27.30 $ 24.21

Advisor Series $ 13.32 $ 11.81

F-Series $ 13.33 $ 11.78

H8 Series $ 11.43 $ 10.83

FT5 Series $ 14.43 $ 13.59

FT8 Series $ 12.47 $ 11.70

T8 Series $ 11.41 $ 10.83

D-Series $ 11.06 N/A

O-Series $ 10.36 N/A

Statements of Comprehensive Income (in 000s except per unit amounts) for the periods ended December 31, 2019 and 2018

2019 2018

Income Net Gain (Loss) on Investments and Derivatives

Dividend Income $ 8,339 $ 9,014 Interest for Distribution Purposes 5,144 4,829 Net Realized Gain (Loss) 18,271 10,301 Net Change in Unrealized Appreciation/

Depreciation 38,898 (43,436)

Net Gain (Loss) on Investments and Derivatives 70,652 (19,292) Foreign Exchange Gain (Loss) on

Cash and Other Net Assets (828) 900 Securities Lending Income 37 14

Total Income (Net) 69,861 (18,378)

Expenses (Note 6) Management Fees 8,715 8,892 Administration Fees 343 346 Independent Review Committee Fees 2 2 Interest Charges 3 50 Transaction Costs 200 162

Total Expenses before Waivers 9,263 9,452 Less: Waived Expenses (16) (50)

Total Expenses (Net) 9,247 9,402

Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units before Tax 60,614 (27,780)

Tax Reclaims (Withholding Taxes) (211) (513)

Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units $ 60,403 $ (28,293)

Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units – Per Series Investor Series $ 46,124 $ (22,836) Advisor Series $ 5,975 $ (3,198) F-Series $ 3,751 $ (1,235) H8 Series $ 732 $ (348) FT5 Series $ 581 $ (2) FT8 Series $ 375 $ (150) T8 Series $ 941 $ (524) D-Series $ 1,329 N/A O-Series $ 595 $ 0

$ 60,403 $ (28,293)

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

Investor Series $ 3.88 $ (1.78)

Advisor Series $ 1.88 $ (0.84)

F-Series $ 1.91 $ (0.80)

H8 Series $ 1.55 $ (0.77)

FT5 Series $ 2.23 $ (1.06)

FT8 Series $ 1.96 $ (0.87)

T8 Series $ 1.61 $ (0.81)

D-Series $ 0.76 N/A

O-Series $ 0.38 $ 0.00

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

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Statements of Changes in Net Assets Attributable to Holders of Redeemable Units (in 000s) for the periods ended December 31, 2019 and 2018

Investor Series Advisor Series F-Series

2019 2018 2019 2018 2019 2018

Net Assets Attributable to Holders of Redeemable Units at Beginning of the Period $ 292,278 $ 353,421 $ 39,384 $ 54,798 $ 19,582 $ 17,501

Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units 46,124 (22,836) 5,975 (3,198) 3,751 (1,235)

Distributions to Holders of Redeemable Units From Net Investment Income (2,564) (422) (336) (61) (485) (98) From Net Realized Gains on Investments (3,190) 0 (429) 0 (257) 0 Return of Capital 0 (939) 0 (137) 0 (218)

(5,754) (1,361) (765) (198) (742) (316)

Redeemable Unit Transactions Proceeds from Redeemable Units Issued 162,684 14,399 16,854 3,053 17,681 7,020 Reinvestments of Distributions 5,632 1,326 645 165 448 174 Redemption of Redeemable Units (83,182) (52,671) (12,356) (15,236) (6,968) (3,562)

Net Increase (Decrease) from Redeemable Unit Transactions 85,134 (36,946) 5,143 (12,018) 11,161 3,632

Net Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units 125,504 (61,143) 10,353 (15,414) 14,170 2,081

Net Assets Attributable to Holders of Redeemable Units at End of the Period $ 417,782 $ 292,278 $ 49,737 $ 39,384 $ 33,752 $ 19,582

Redeemable Unit Transactions Redeemable Units Outstanding,

Beginning of the Period 12,074 13,516 3,336 4,297 1,662 1,375 Redeemable Units Issued 6,133 561 1,301 245 1,370 559 Redeemable Units Issued on Reinvestments 211 52 49 13 35 14 Redeemable Units Redeemed (3,114) (2,055) (952) (1,219) (534) (286)

Redeemable Units Outstanding, End of the Period 15,304 12,074 3,734 3,336 2,533 1,662

Weighted Average Units Outstanding 11,879 12,802 3,184 3,792 1,968 1,535

H8 Series FT5 Series

2019 2018 2019 2018

Net Assets Attributable to Holders of Redeemable Units at Beginning of the Period $ 4,542 $ 6,591 $ 40 $ N/A

Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units 732 (348) 581 (2)

Distributions to Holders of Redeemable Units From Net Investment Income (47) (7) (69) 0 From Net Realized Gains on Investments (58) 0 (46) 0 Return of Capital (378) (383) (112) 0

(483) (390) (227) 0

Redeemable Unit Transactions Proceeds from Redeemable Units Issued 2,536 358 7,422 42 Reinvestments of Distributions 298 217 19 0 Redemption of Redeemable Units (1,171) (1,886) (6,762) 0

Net Increase (Decrease) from Redeemable Unit Transactions 1,663 (1,311) 679 42

Net Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units 1,912 (2,049) 1,033 40

Net Assets Attributable to Holders of Redeemable Units at End of the Period $ 6,454 $ 4,542 $ 1,073 $ 40


Beginning of the Period 419 525 3 N/A Redeemable Units Issued 221 30 519 3 Redeemable Units Issued on Reinvestments 26 18 1 0 Redeemable Units Redeemed (101) (154) (449) 0

Redeemable Units Outstanding, End of the Period 565 419 74 3

Weighted Average Units Outstanding 472 452 260 2



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Statements of Changes in Net Assets Attributable to Holders of Redeemable Units (in 000s) for the periods ended December 31, 2019 and 2018

FT8 Series T8 Series D-Series

2019 2018 2019 2018 2019 2018

Net Assets Attributable to Holders of Redeemable Units at Beginning of the Period $ 2,430 $ 1,940 $ 6,513 $ 8,733 $ N/A N/A

Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units 375 (150) 941 (524) 1,329 N/A

Distributions to Holders of Redeemable Units From Net Investment Income (45) (11) (56) (11) (329) N/A From Net Realized Gains on Investments (26) 0 (73) 0 (154) N/A Return of Capital (140) (153) (462) (553) 0 N/A

(211) (164) (591) (564) (483) N/A

Redeemable Unit Transactions Proceeds from Redeemable Units Issued 177 953 543 355 34,427 N/A Reinvestments of Distributions 73 47 326 293 468 N/A Redemption of Redeemable Units (509) (196) (1,379) (1,780) (1,971) N/A

Net Increase (Decrease) from Redeemable Unit Transactions (259) 804 (510) (1,132) 32,924 N/A

Net Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units (95) 490 (160) (2,220) 33,770 N/A

Net Assets Attributable to Holders of Redeemable Units at End of the Period $ 2,335 $ 2,430 $ 6,353 $ 6,513 $ 33,770 N/A


Beginning of the Period 208 145 601 696 N/A N/A Redeemable Units Issued 14 74 47 29 3,191 N/A Redeemable Units Issued on Reinvestments 6 4 29 25 43 N/A Redeemable Units Redeemed (41) (15) (120) (149) (181) N/A

Redeemable Units Outstanding, End of the Period 187 208 557 601 3,053 N/A

Weighted Average Units Outstanding 192 172 583 649 1,747 N/A

O-Series TOTAL

2019 2018 2019 2018

Net Assets Attributable to Holders of Redeemable Units at Beginning of the Period $ N/A $ 0 $ 364,769 $ 442,984

Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units 595 0 60,403 (28,293)

Distributions to Holders of Redeemable Units From Net Investment Income 0 0 (3,931) (610) From Net Realized Gains on Investments 0 0 (4,233) 0 Return of Capital 0 0 (1,092) (2,383)

0 0 (9,256) (2,993)

Redeemable Unit Transactions Proceeds from Redeemable Units Issued 17,678 0 260,002 26,180 Reinvestments of Distributions 0 0 7,909 2,222 Redemption of Redeemable Units (1,208) 0 (115,506) (75,331)

Net Increase (Decrease) from Redeemable Unit Transactions 16,470 0 152,405 (46,929)

Net Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units 17,065 0 203,552 (78,215)

Net Assets Attributable to Holders of Redeemable Units at End of the Period $ 17,065 $ N/A $ 568,321 $ 364,769


Beginning of the Period N/A 0 Redeemable Units Issued 1,764 0 Redeemable Units Issued on Reinvestments 0 0 Redeemable Units Redeemed (117) 0

Redeemable Units Outstanding, End of the Period 1,647 N/A

Weighted Average Units Outstanding 1,606 0



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Statements of Cash Flows (in 000s) for the periods ended December 31, 2019 and 2018

2019 2018

Cash Flows from (used in) Operating Activities Increase (Decrease) in Net Assets Attributable

to Holders of Redeemable Units $ 60,403 $ (28,293) Adjustment For:

Accretion of Interest (24) (39) Unrealized Foreign Exchange (Gain) Loss on Cash 1,118 (1,098) Net Realized (Gain) Loss (18,271) (10,301) Net Change in Unrealized Appreciation/

Depreciation (38,898) 43,436 Purchase of Investments and Derivatives† (183,978) (101,826) Proceeds from Sale, Paydown and Maturity

of Investments and Derivatives 173,851 144,978 (Increase) Decrease in Interest and

Dividends Receivables (601) 651 Increase (Decrease) in Accrued Liabilities 21 (11)

Net Cash from (used in) Operating Activities (6,379) 47,497

Cash Flows from (used in) Financing Activities Distributions Paid to Holders of Redeemable Units,

Net of Reinvested Distributions (1,347) (771) Proceeds from Issuance of Redeemable Units† 72,976 18,197 Amounts Paid on Redemption of Redeemable Units (72,338) (67,195)

Net Cash from (used in) Financing Activities (709) (49,769)

Unrealized Foreign Exchange Gain (Loss) on Cash (1,118) 1,098 Net Increase (Decrease) in Cash (7,088) (2,272) Cash (Bank Overdraft) at Beginning of the Period 20,764 21,938

Cash (Bank Overdraft) at End of the Period $ 12,558 $ 20,764

Interest for Distribution Purposes Received*, Net of Withholding Taxes $ 4,494 $ 5,353

Dividends Received*, Net of Withholding Taxes $ 8,156 $ 8,590 † Excludes in-kind subscriptions of $144,043 (2018: $0) * Included as part of Cash Flows from (used in) Operating Activities.


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Communication Services – 2.3% 25,000 AT&T Inc. $ 1,267 $ 1,269 50,000 Rogers Communications Inc., Class ‘B’ 3,060 3,224 145,000 TELUS Corporation 6,004 7,291 8,000 The Walt Disney Company 1,459 1,502

11,790 13,286

Consumer Discretionary – 2.4% 1,200 Amazon.com Inc. 1,758 2,879 12,000 Bright Horizons Family Solutions Inc. 2,172 2,342 70,000 Restaurant Brands International Inc. 4,913 5,795 10,000 The Home Depot Inc. 2,824 2,836

11,667 13,852

Consumer Staples – 3.5% 275,000 Alimentation Couche-Tard Inc., Class ‘B’ 9,669 11,333 67,000 The Coca-Cola Company 3,307 4,815 14,000 The Estee Lauder Companies Inc., Class ‘A’ 2,488 3,755

15,464 19,903

Energy – 11.0% 350,000 BP PLC 2,795 2,839 350,000 Canadian Natural Resources Limited 11,576 14,700 276,000 Enbridge Inc. 11,303 14,250 150,000 Pason Systems Inc. 2,872 1,966 375,000 Suncor Energy Inc. 14,807 15,960 180,000 TC Energy Corporation 9,649 12,449

53,002 62,164

Financials – 19.9% 180,000 AIA Group Limited 2,278 2,454 8,000 Aon PLC 1,438 2,164 55,000 Bank of America Corporation 1,862 2,515 200,000 Brookfield Asset Management Inc.,

Class ‘A’ 12,884 15,006 11,400 CME Group Inc., Class ‘A’ 2,774 2,971 15,000 JPMorgan Chase & Company 963 2,715 450,000 Manulife Financial Corporation 10,499 11,862 48,000 Morgan Stanley 2,492 3,186 280,000 Royal Bank of Canada 18,243 28,770 146,000 Sun Life Financial Inc. 7,384 8,645 96,000 The Bank of Nova Scotia 7,213 7,042 355,000 The Toronto-Dominion Bank* 16,526 25,855

84,556 113,185

Health Care – 2.2% 30,000 Abbott Laboratories 3,079 3,384 25,000 Agilent Technologies Inc. 2,648 2,770 3,000 Illumina Inc. 1,292 1,292 24,000 Merck & Company Inc. 2,531 2,834 6,000 UnitedHealth Group Inc. 2,017 2,291

11,567 12,571

Industrials – 9.1% 50,000 Alstom SA 2,717 3,076 150,000 CAE Inc. 4,290 5,157 136,000 Canadian National Railway Company 13,857 15,976 25,000 Canadian Pacific Railway Limited 7,412 8,276 7,500 FANUC Corporation 1,936 1,798 15,000 Honeywell International Inc. 1,200 3,448

60,000 Nihon M&A Center Inc. 2,347 2,681 6,000 The Boeing Company 2,750 2,538 9,000 Union Pacific Corporation 1,976 2,113 55,000 Waste Connections Inc. 5,869 6,487

44,354 51,550

Information Technology – 5.3% 15,000 Amadeus IT Group SA 1,503 1,591 7,000 ASML Holding NV 1,812 2,689 144 Bill.Com Holdings Inc. 4 7 5,000 Broadridge Financial Solutions Inc., ADR 678 802 4,000 Keyence Corporation 1,514 1,824 40,000 Lasertec Corporation 1,195 2,634 25,000 Microsoft Corporation 2,588 5,119 185,000 Network International Holdings PLC 1,634 2,040 4,000 ServiceNow Inc. 1,223 1,466 30,000 Taiwan Semiconductor Manufacturing

Company Limited, ADR 2,004 2,263 15,000 Texas Instruments Inc. 1,745 2,499 20,000 Visa Inc., Class ‘A’ 2,494 4,880 18,500 Xilinx Inc. 2,671 2,349

21,065 30,163

Materials – 5.5% 115,000 Agnico Eagle Mines Limited 7,883 9,198 75,000 BHP Group Limited 2,158 2,660 18,000 Celanese Corporation, Class ‘A’ 2,768 2,878 70,000 Franco-Nevada Corporation 7,288 9,386 13,000 Linde PLC 2,882 3,594 55,000 Nutrien Limited 3,207 3,419

26,186 31,135

Real Estate – 1.7% 16,000 Crown Castle International Corporation 1,979 2,953 4,000 Equinix Inc. 2,006 3,032 32,000 FirstService Corporation 3,707 3,869

7,692 9,854

Utilities – 3.8% 220,000 Algonquin Power & Utilities Corporation 2,406 4,041 110,000 Brookfield Infrastructure Partners

Limited Partnership 2,687 7,135 150,000 Fortis Inc. 6,985 8,082 7,500 NextEra Energy Inc. 1,772 2,358

13,850 21,616

Corporate Bonds – 29.2% 407 International Inc. 1,250,000 Callable 3.830% due May 11, 2046 1,308 1,425 670,000 Callable 3.720% due May 11, 2048 675 755 170,000 Callable 3.670% due March 8, 2049 189 190 777 Bay Limited Partnership 158,748 Private Debt 3.185% due July 17, 2026 159 160

Adient U.S. LLC (USD) 334,000 Callable, Series ‘144A’

7.000% due May 15, 2026 455 474

AECOM (USD) 144,000 Callable 5.125% due March 15, 2027 205 202

AIMCo Realty Investors Limited Partnership 292,000 Callable 2.266% due June 26, 2024 290 291 378,000 Callable 3.367% due June 1, 2027 400 398 1,015,000 Callable 3.043% due June 1, 2028 1,021 1,046 880,000 Callable 2.712% due June 1, 2029 892 884

$ $


Schedule of Investment Portfolio (in 000s except number of Shares

or Units/Par Value) as at December 31, 2019

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


9

Alberta PowerLine Limited Partnership 270,502 4.065% due December 1, 2053 286 306 283,000 4.065% due March 1, 2054 300 320

Allied Properties Real Estate Investment Trust 755,000 Callable, Series ‘C’

3.636% due April 21, 2025 775 781 440,000 Callable, Series ‘E’

3.113% due April 8, 2027 438 438 500,000 Callable, Series ‘D’

3.394% due August 15, 2029 497 498

AltaLink Limited Partnership 600,000 3.990% due June 30, 2042 651 701 1,760,000 Callable 3.717% due December 3, 2046 1,886 2,003

Altice Financing SA (USD) 139,000 Callable, Series ‘144A’

7.500% due May 15, 2026 188 194

ANTMP SYN CTL PTT Pass-Through Trust (USD) 230,000 Private Debt 4.360% due June 30, 2034 313 311

APS (Phoenix, AZ) CTL Pass-Through Trust 29,212 Private Debt (USD)

5.088% due December 15, 2045 42 41 54,404 Private Debt

5.225% due December 15, 2045 64 65

Ashland LLC (USD) 87,000 Callable 4.750% due August 15, 2022 120 118

Ball Corporation (USD) 41,000 5.000% due March 15, 2022 57 56

Bank of America Corporation 1,626,000 Variable Rate, Callable

2.604% due March 15, 2023 1,627 1,632 1,228,000 Variable Rate, Callable

3.301% due April 24, 2024 1,240 1,257

Bank of Montreal 1,300,000 2.850% due March 6, 2024 1,310 1,320 1,550,000 2.280% due July 29, 2024 1,542 1,536 800,000 Variable Rate, Callable

2.570% due June 1, 2027 800 803 1,000,000 3.190% due March 1, 2028 1,010 1,055 311,000 Variable Rate, Callable (USD)

4.338% due October 5, 2028 426 426 2,160,000 Variable Rate, Callable

2.882% due September 17, 2029 2,152 2,162

Baytex Energy Corporation (USD) 292,000 Callable, Series ‘144A’

5.125% due June 1, 2021 377 376

bcIMC Realty Corporation 800,000 Callable 2.840% due June 3, 2025 800 818 924,000 Callable 3.000% due March 31, 2027 953 954

BCLC Lottery Gateway Pass Through Trust 80,000 Private Debt 5.730% due March 15, 2038 85 85

Bell Canada Inc. 950,000 Callable 2.700% due February 27, 2024 952 955 250,000 Callable 2.750% due January 29, 2025 250 251 311,000 Callable 3.350% due March 12, 2025 320 321 1,339,000 Callable 3.800% due August 21, 2028 1,389 1,414 800,000 Callable 4.450% due February 27, 2047 821 885

BellRing Brands LLC (USD) 41,000 Term Loan due October 10, 2024 53 54

BMW Canada Inc. 180,000 Series ‘V’ 2.410% due November 27, 2023 180 180

Bow Centre Street Limited Partnership 1,153,000 Series ‘A’ 3.690% due June 14, 2021 1,153 1,153

$ $

Calpine Corporation (USD) 104,000 Callable 5.500% due February 1, 2024 137 137

Canadian Imperial Bank of Commerce 980,000 3.290% due January 15, 2024 1,003 1,011 1,550,000 2.350% due August 28, 2024 1,543 1,538 1,151,000 Variable Rate, Callable

3.450% due April 4, 2028 1,165 1,181 1,610,000 Variable Rate, Callable

2.950% due June 19, 2029 1,607 1,617

Canadian National Railway Company 540,000 Callable 3.000% due February 8, 2029 556 558 1,200,000 Callable 3.600% due February 8, 2049 1,236 1,318

Canadian Natural Resources Limited 968,000 3.310% due February 11, 2022 988 987 1,060,000 Callable 3.550% due March 3, 2024 1,089 1,093

Capital Desjardins Inc. 1,633,000 Variable Rate, Callable

4.954% due December 15, 2021 1,666 1,714

Cascades Inc./Cascades USA Inc. (USD) 144,000 Callable, Series ‘144A’

5.125% due January 15, 2026 193 193

CCO Holdings LLC/ CCO Holdings Capital Corporation (USD)

117,000 Callable, Series ‘144A’ 5.750% due February 15, 2026 156 161


Cedar Fair Limited Partnership (USD) 151,000 Callable, Series ‘144A’

5.250% due July 15, 2029 205 212

CEMEX Finance LLC (USD) 261,000 Callable 6.000% due April 1, 2024 352 349

Cemex SAB de CV (USD) 58,000 Callable 5.700% due January 11, 2025 77 78

Century Communities Inc. (USD) 238,000 Callable, Series ‘144A’

6.750% due June 1, 2027 334 332

CenturyLink Inc. (USD) 38,000 Series ‘V’ 5.625% due April 1, 2020 50 50 204,424 Term Loan due January 31, 2025 262 267 120,000 Callable 5.625% due April 1, 2025 161 166 71,000 Callable 5.125% due December 15, 2026 95 94

CGA Capital CBPT (USD) 60,000 Private Debt

4.906% due September 10, 2048 89 88

Chaudiere Hydro Limited Partnership 135,000 Private Debt, Series ‘2016-1’

4.080% due March 31, 2057 142 142

Chicago Parking Meters LLC (USD) 190,000 Private Debt

4.930% due December 31, 2025 269 268

Choice Properties Real Estate Investment Trust 690,000 Callable, Series ‘M’

3.532% due June 11, 2029 694 699

Citigroup Inc. 550,000 4.090% due June 9, 2025 576 578

Clover Limited Partnership 192,955 4.216% due March 31, 2034 198 202 193,098 4.216% due June 30, 2034 198 202

Cogeco Communications Inc. 140,000 Callable 4.175% due May 26, 2023 147 146

$ $





10

Connect Finco SARL/ Connect U.S. Finco LLC (USD)

90,000 Callable 6.750% due October 1, 2026 121 125

CSC Holdings LLC (USD) 137,000 Callable, Series ‘144A’

7.750% due July 15, 2025 194 190 141,203 Term Loan due January 12, 2026 184 184

CU Inc. 600,000 Callable 4.085% due September 2, 2044 625 705 1,030,000 Callable 3.964% due July 27, 2045 1,060 1,195

CUBE FH Limited Partnership (GBP) 70,000 Private Debt 3.832% due June 15, 2048 46 129

Cumulus Media New Holdings Inc. (USD) 84,000 Callable 6.750% due July 1, 2026 119 117

CVS Health Corporation (USD) 50,000 Callable 2.625% due August 15, 2024 65 66 189,000 Callable 4.100% due March 25, 2025 248 264

Daimler Canada Finance Inc. 264,000 3.300% due August 16, 2022 268 269 480,000 2.540% due August 21, 2023 477 478

Dana Financing Luxembourg SARL (USD) 313,000 Callable, Series ‘144A’

6.500% due June 1, 2026 435 436

Dana Inc. (USD) 79,000 Callable 5.500% due December 15, 2024 102 106

Diamond Sports Group LLC/ Diamond Sports Finance Company (USD)

226,000 Callable, Series ‘144A’ 6.625% due August 15, 2027 295 286

DISH DBS Corporation (USD) 129,000 5.875% due July 15, 2022 181 178

Eagle Intermediate Global Holding BV /Ruyi U.S. Finance LLC (USD)

305,000 Callable, Series ‘144A’ 7.500% due May 1, 2025 371 314

Ellisdon Infrastructure RIH General Partnership 40,000 Series ‘B’ 4.148% due November 30, 2051 47 46

Enbridge Gas Inc. 500,000 6.160% due December 16, 2033 590 685 1,450,000 5.210% due February 25, 2036 1,477 1,856 500,000 5.200% due July 23, 2040 638 663 2,229,000 Callable 4.200% due December 2, 2043 2,535 2,660 230,000 Callable 4.000% due February 22, 2044 229 267

Enbridge Inc. 250,000 Callable 3.200% due June 8, 2027 254 254 290,000 Callable 2.990% due October 3, 2029 287 286 700,000 Callable 4.570% due March 11, 2044 725 767 500,000 Variable Rate, Callable, Series ‘C’

6.625% due April 12, 2078 540 543

Enbridge Pipelines Inc. 425,000 Callable 3.000% due August 10, 2026 433 434 190,000 Callable 3.520% due February 22, 2029 199 200 1,300,000 5.080% due December 19, 2036 1,252 1,546 600,000 5.350% due November 10, 2039 599 744 1,020,000 5.330% due April 6, 2040 1,100 1,263 800,000 Callable 4.330% due February 22, 2049 882 897

Ensign Drilling Inc. (USD) 305,000 Callable, Series ‘144A’

9.250% due April 15, 2024 384 375

ESH Hospitality Inc. (USD) 182,872 Term Loan due September 18, 2026 241 240

$ $

Federation des caisses Desjardins du Quebec 510,000 2.417% due October 4, 2024 508 507

Financial & Risk U.S. Holdings Inc. (USD) 256,608 Term Loan due October 1, 2025 334 337

Finning International Inc. 327,000 Callable 2.626% due August 14, 2026 324 321

First Capital Realty Inc. 400,000 4.430% due January 31, 2022 439 415 995,000 Series ‘R’ 4.790% due August 30, 2024 1,068 1,070 670,000 Callable, Series ‘V’

3.456% due November 22, 2026 669 668

First Quantum Minerals Limited (USD) 173,000 Callable, Series ‘144A’

6.500% due March 1, 2024 219 226

Ford Credit Canada Company 1,926,000 2.923% due September 16, 2020 1,929 1,930 425,000 2.710% due February 23, 2022 420 420 838,000 2.766% due June 22, 2022 829 826 708,000 3.349% due September 19, 2022 704 706 266,000 3.742% due May 8, 2023 265 266

FortisBC Inc. 693,000 Callable 4.000% due April 28, 2044 710 801

General Motors Financial of Canada Limited 300,000 2.600% due June 1, 2022 295 298 480,000 3.250% due November 7, 2023 480 481

GIP III Jupiter Limited (GBP) 100,000 Private Debt 3.201% due March 31, 2036 64 183

Grand Renewable Solar Limited Partnership 313,809 3.926% due January 31, 2035 318 321

Gray Television Inc. (USD) 329,000 Callable, Series ‘144A’

5.875% due July 15, 2026 453 455

Great-West Lifeco Inc. 479,000 Callable 3.337% due February 28, 2028 490 504

Greenko Dutch BV (USD) 108,000 Callable 5.250% due July 24, 2024 141 143

Ground Lease Trust 2018D (Homewood Suites) (USD)

30,000 Private Debt 5.260% due June 15, 2048 45 44

Hanesbrands Inc. (USD) 105,000 Callable, Series ‘144A’

4.625% due May 15, 2024 141 144

HCA Inc. (USD) 144,000 5.375% due February 1, 2025 200 207

HCN Canadian Holdings-1 Limited Partnership 300,000 Callable 2.950% due January 15, 2027 300 300

Hologic Inc. (USD) 176,000 Callable, Series ‘144A’

4.375% due October 15, 2025 228 236

HSBC Bank Canada 147,000 2.542% due January 31, 2023 147 148 105,000 3.245% due September 15, 2023 108 108

HSBC Holdings PLC 1,817,000 3.196% due December 5, 2023 1,830 1,851

Hudbay Minerals Inc. (USD) 137,000 Callable, Series ‘144A’

7.250% due January 15, 2023 185 185

Husky Energy Inc. (USD) 300,000 Callable 4.400% due April 15, 2029 414 419

$ $





11

Hydro One Inc. 930,000 6.930% due June 1, 2032 1,130 1,322 900,000 4.890% due March 13, 2037 892 1,125 255,000 6.030% due March 3, 2039 358 364 123,000 Callable 4.170% due December 6, 2043 143 146 650,000 Callable 3.630% due June 25, 2049 673 722

iA Financial Corporation Inc. 500,000 Variable Rate, Callable

3.072% due September 24, 2031 500 502

iHeartCommunications Inc. (USD) 149,000 Callable, Series ‘144A’

5.250% due August 15, 2027 205 203

Industrial Alliance Insurance and Financial Services Inc.

617,000 Variable Rate, Callable 3.300% due September 15, 2028 622 633

Inter Pipeline Limited 300,000 Callable 2.734% due April 18, 2024 299 299

Iron Mountain Inc. (USD) 82,000 Callable 6.000% due August 15, 2023 107 109

Kawa SBA IO Trust (USD) 78,463 Private Debt 4.606% due August 1, 2022 103 103

Kent Hills Wind Limited Partnership 170,401 Private Debt

4.454% due December 31, 2033 178 179

Kingston Solar Limited Partnership 482,867 3.571% due July 31, 2035 486 486

KK Gate Limited Partnership 60,498 Private Debt 4.700% due July 10, 2050 70 71

L Brands Inc. (USD) 79,000 5.625% due October 15, 2023 110 111 73,000 6.694% due January 15, 2027 96 95

Lamb Weston Holdings Inc. (USD) 170,000 Callable, Series ‘144A’

4.875% due November 1, 2026 233 234

Lennar Corporation (USD) 117,000 Callable 4.750% due November 29, 2027 164 164

LSC Communications Inc. (USD) 169,000 Callable, Series ‘144A’

8.750% due October 15, 2023 194 119

Manulife Financial Corporation 645,000 Variable Rate, Callable

3.317% due May 9, 2023 653 661

Match Group Inc. (USD) 234,000 Callable, Series ‘144A’

5.000% due December 15, 2027 307 318 107,000 Callable, Series ‘144A’

5.625% due February 15, 2029 149 148

Mattamy Group Corporation (USD) 286,000 Callable, Series ‘144A’

6.500% due October 1, 2025 385 397 119,000 Callable, Series ‘144A’

5.250% due December 15, 2027 160 161

Mattel Inc. (USD) 274,000 Callable, Series ‘144A’

6.750% due December 31, 2025 365 383

MEG Energy Corporation (USD) 127,000 Callable, Series ‘144A’

6.500% due January 15, 2025 171 172

Meredith Corporation (USD) 203,038 Term Loan due January 31, 2025 261 266 90,000 Callable 6.875% due February 1, 2026 121 122

$ $

Minerva Luxembourg SA (USD) 241,000 Callable 6.500%

due September 20, 2026 333 334

MSCI Inc. (USD) 143,000 Callable, Series ‘144A’

4.750% due August 1, 2026 198 195

National Australia Bank Limited 1,420,000 Variable Rate, Callable

3.515% due June 12, 2030 1,420 1,422

National Bank of Canada 200,000 2.983% due March 4, 2024 204 204 930,000 2.545% due July 12, 2024 930 931

Navient Corporation (USD) 172,000 5.500% due January 25, 2023 225 239 168,000 6.750% due June 25, 2025 230 241

Navistar Inc. (USD) 307,416 Term Loan due November 2, 2024 403 399

Netflix Inc. (USD) 235,000 6.375% due May 15, 2029 332 348

Nielsen Finance LLC (VNU) (USD) 237,749 Term Loan due October 4, 2023 303 310

Nielsen Finance LLC/ Nielsen Finance Company (USD)

69,000 Callable, Series ‘144A’ 5.000% due April 15, 2022 86 90

North West Redwater Partnership/ NWR Financing Company Limited

721,000 Callable, Series ‘F’ 4.250% due June 1, 2029 745 796

346,000 Callable, Series ‘K’ 3.650% due June 1, 2035 361 361

715,000 Callable, Series ‘D’ 3.700% due August 23, 2042 724 749

723,000 Callable 4.050% due January 24, 2044 735 799

Northern Courier Pipeline Limited Partnership 1,050,000 3.365% due June 30, 2042 1,055 1,048

Northland Power Solar Finance One Limited Partners

398,404 Series ‘A’ 4.397% due June 30, 2032 408 420

Northwestern Hydro Acquisition Company Inc. 106,000 Private Debt, Callable

3.985% due December 31, 2034 115 115

Nouvelle Autoroute 30 Financement Inc. 125,110 Series ‘D’ 3.742% due December 31, 2032 128 131 126,030 Series ‘C’ 3.750% due March 31, 2033 129 133

NOVA Chemicals Corporation (USD) 219,000 Callable, Series ‘144A’

5.250% due August 1, 2023 285 291

Novelis Corporation (USD) 318,000 Callable, Series ‘144A’

6.250% due August 15, 2024 434 434

Numericable U.S. LLC (USD) 340,812 Term Loan due January 31, 2026 441 445

Oasis Petroleum Inc. (USD) 104,000 Callable 6.875% due March 15, 2022 129 130

Oceaneering International Inc. (USD) 197,000 Callable 4.650% due November 15, 2024 242 251

OMERS Realty Corporation 1,201,000 Callable 3.244% due October 4, 2027 1,220 1,258 786,000 Callable 3.628% due June 5, 2030 820 854

Ontario Power Generation Inc. 840,000 Callable 2.977% due September 13, 2029 849 852

$ $





12

Ontario Teachers’ Cadillac Fairview Properties Trust (USD)


Original Wempi Inc. 948,000 Series ‘B1’ 4.309% due February 13, 2024 962 981

Panther BF Aggregator 2 Limited Partnership/ Panther Finance Company Inc. (USD)

327,000 Callable, Series ‘144A’ 6.250% due May 15, 2026 449 458

Pembina Pipeline Corporation 780,000 2.560% due June 1, 2023 779 781 811,000 Callable 2.990% due January 22, 2024 803 822 300,000 Callable 4.240% due June 15, 2027 304 321 250,000 Callable 4.020% due March 27, 2028 265 264 560,000 Callable 3.620% due April 3, 2029 566 575 400,000 Callable 3.310% due February 1, 2030 400 399

Petrobras Global Finance BV (USD) 95,000 7.375% due January 17, 2027 136 151 43,000 5.750% due February 1, 2029 60 63

Powell River Energy Inc. 136,157 Private Debt 4.450% due August 31, 2026 137 138

Precision Drilling Corporation (USD) 99,000 Callable 7.750% due December 15, 2023 128 129 197,000 Callable 5.250% due November 15, 2024 233 235

Prime Security Services Borrower LLC/ Prime Finance Inc. (USD)

81,000 Series ‘144A’ 5.750% due April 15, 2026 113 115

R.R. Donnelley & Sons Company (USD) 79,000 7.875% due March 15, 2021 105 106 10,000 6.500% due November 15, 2023 13 13 261,612 Term Loan due January 4, 2024 342 343

Real Estate Asset Liquidity Trust 302,900 Callable 2.356% due January 12, 2025 302 299 518,000 Callable 3.239% due May 12, 2025 521 521 637,000 Callable 2.588% due October 12, 2025 636 635 250,000 Variable Rate, Callable

3.017% due March 12, 2029 249 246

Refinitiv U.S. Holdings Inc. (USD) 164,000 Callable, Series ‘144A’

6.250% due May 15, 2026 223 233

Reliant FN Limited Partnership 43,506 Private Debt 4.510% due June 15, 2036 45 45 73,476 Private Debt

4.770% due December 15, 2036 75 76

Resolute Forest Products Inc. (USD) 165,000 Callable 5.875% due May 15, 2023 216 217

RioCan Real Estate Investment Trust 1,210,000 Series ‘V’ 3.746% due May 30, 2022 1,230 1,248 459,000 Series ‘Y’ 2.830% due October 3, 2022 460 464 430,000 Callable 3.209% due September 29, 2023 429 439 330,000 Series ‘W’ 3.287% due February 12, 2024 336 337 340,000 Callable 2.576% due February 12, 2025 338 335

Rogers Communications Inc. 745,000 Callable 3.250% due May 1, 2029 751 757 1,050,000 Callable 6.110% due August 25, 2040 1,351 1,391

Royal Bank of Canada 544,000 3.296% due September 26, 2023 553 561 870,000 2.352% due July 2, 2024 868 866 3,930,000 Variable Rate 2.740% due July 25, 2024 3,912 3,917 1,450,000 2.609% due November 1, 2024 1,450 1,457 1,080,000 Callable 2.880% due December 23, 2024 1,080 1,081

$ $

Sabre GLBL Inc. (USD) 135,000 Callable, Series ‘144A’

5.375% due April 15, 2023 184 180 85,000 Callable, Series ‘144A’

5.250% due November 15, 2023 115 114

Saputo Inc. 790,000 Callable 2.876% due November 19, 2024 790 794

Schlegel Villages Inc. 121,908 Private Debt, Series ‘A’

4.433% due March 31, 2037 129 129

ScotianWEB II Limited Partnership 101,926 Private Debt

5.350% due November 30, 2035 105 105

Seagate HDD Cayman (USD) 172,000 Callable 4.875% due March 1, 2024 226 238

Seven Generations Energy Limited (USD) 103,000 Callable, Series ‘144A’

6.750% due May 1, 2023 136 137 86,000 Callable, Series ‘144A’

5.375% due September 30, 2025 112 113

Shaw Communications Inc. 869,000 Callable 3.800% due November 2, 2023 886 906 385,000 Callable 4.350% due January 31, 2024 407 409 300,000 Callable 4.400% due November 2, 2028 317 326 500,000 Callable 3.300% due December 10, 2029 498 500

SHW CTL PS Trust (USD) 88,955 Private Debt, Series ‘A1’

3.670% due May 15, 2029 129 116 160,000 Private Debt, Series ‘A2’

4.410% due May 15, 2029 215 215

SHW-WILL FRED TR (USD) 40,000 Private Debt 5.170% due June 15, 2038 58 58

Sinclair Television Group Inc. (USD) 238,000 Callable, Series ‘144A’

5.625% due August 1, 2024 316 319 199,000 Callable, Series ‘144A’

5.125% due February 15, 2027 267 266

Sirius XM Radio Inc. (USD) 194,000 Callable, Series ‘144A’

5.000% due August 1, 2027 264 266 78,000 Callable, Series ‘144A’

5.500% due July 1, 2029 112 110

Six Flags Entertainment Corporation (USD) 161,000 Callable, Series ‘144A’

4.875% due July 31, 2024 206 217 30,000 Callable 5.500% due April 15, 2027 42 42

Smoot Harbor LLC (USD) 76,203 Private Debt 5.750% due January 10, 2038 101 102

Southgate Solar Limited Partnership 259,868 Private Debt 4.159% due July 31, 2036 265 267

Sprint Communications Inc. (USD) 65,000 Callable 7.000% due August 15, 2020 88 86 187,000 6.000% due November 15, 2022 253 255

Sprint Corporation (USD) 41,000 7.250% due September 15, 2021 57 56 182,000 7.125% due June 15, 2024 249 255 94,000 Callable 7.625% due March 1, 2026 135 135

Staples Inc. (USD) 219,110 Term Loan due April 9, 2026 287 280

$ $





13

Suncor Energy Inc. 550,000 Callable 3.000%

due September 14, 2026 548 561 350,000 Callable 3.100% due May 24, 2029 351 355

Talen Energy Supply LLC (USD) 99,000 Callable, Series ‘144A’

7.250% due May 15, 2027 133 136

TD Capital Trust IV* 2,500,000 Variable Rate, Callable

6.631% due June 30, 2021 2,500 2,653

TELUS Corporation 378,000 Callable 3.350% due January 2, 2024 389 389 800,000 Callable 3.750% due January 17, 2025 849 838 810,000 Callable 3.750% due March 10, 2026 820 851 500,000 Callable 2.750% due July 8, 2026 497 497 1,221,000 Callable 3.625% due March 1, 2028 1,219 1,272 530,000 Callable 3.300% due May 2, 2029 531 538 360,000 Callable 3.150% due February 19, 2030 359 359 450,000 Callable 3.950% due February 16, 2050 446 448

Tempur Sealy International Inc. (USD) 206,000 Callable 5.500% due June 15, 2026 281 282

The ADT Security Corporation (USD) 125,000 3.500% due July 15, 2022 158 166

The Bank of Nova Scotia 921,000 Variable Rate, Callable

2.580% due March 30, 2022 921 924 960,000 2.490% due September 23, 2024 958 958 310,000 3.100% due February 2, 2028 310 325 2,015,000 Variable Rate, Callable

3.890% due January 18, 2029 2,067 2,101 2,130,000 Variable Rate, Callable

2.836% due July 3, 2029 2,122 2,128

The Dun & Bradstreet Corporation (USD) 254,000 Term Loan due February 1, 2026 336 333 26,000 Callable, Series ‘144A’

6.875% due August 15, 2026 36 37

The Goodyear Tire & Rubber Company (USD) 106,000 Callable 5.000% due May 31, 2026 146 143

The Hertz Corporation (USD) 71,000 Callable, Series ‘144A’

7.625% due June 1, 2022 93 96

The Manufacturers Life Insurance Company 378,000 Variable Rate, Callable

3.181% due November 22, 2022 386 386

The Men’s Wearhouse Inc. (USD) 162,020 Term Loan due April 9, 2025 193 170

The Nielsen Company Luxembourg SARL (USD) 63,000 Callable, Series ‘144A’

5.500% due October 1, 2021 83 82 53,000 Callable, Series ‘144A’

5.000% due February 1, 2025 70 71

The Toronto-Dominion Bank* 1,356,000 Variable Rate, Callable

4.859% due March 4, 2026 1,415 1,505 1,021,000 Variable Rate, Callable

3.224% due July 25, 2029 1,026 1,040 1,612,000 Variable Rate, Callable

3.060% due January 26, 2032 1,606 1,616

Toromont Industries Limited 293,000 Callable 3.842% due October 27, 2027 300 309

$ $

TransCanada PipeLines Limited 300,000 Callable 3.300% due July 17, 2025 300 311 493,000 Callable 3.390% due March 15, 2028 509 510 490,000 Callable 3.000% due September 18, 2029 488 489 96,000 6.500% due December 9, 2030 121 121 1,200,000 4.550% due November 15, 2041 1,204 1,331 750,000 Callable 4.350% due June 6, 2046 768 813 300,000 Callable 4.340% due October 15, 2049 322 327

TransCanada Trust 500,000 Variable Rate, Callable

4.650% due May 18, 2077 481 486

Trivium Packaging Finance BV (USD) 174,000 Callable, Series ‘144A’

5.500% due August 15, 2026 238 239

UNA CTL PT Trust (USD) 166,781 Private Debt, Series ‘A1’

3.470% due June 15, 2033 219 218 87,732 Private Debt, Series ‘A2’

4.030% due June 15, 2033 119 119 46,690 Private Debt, Series ‘A3’

14.000% due June 15, 2033 64 64

UTC CLT Trust (USD) 47,838 Private Debt 4.870% due August 15, 2027 67 67

VA Cleveland (USD) 150,000 Private Debt 4.949% due June 10, 2031 211 209

VA Tal CTL Trust (USD) 150,000 Private Debt, Series ‘A2’

4.090% due July 15, 2036 197 194

Ventas Canada Finance Limited 1,416,000 Callable 3.300% due February 1, 2022 1,425 1,440 189,000 Callable, Series ‘D’

2.550% due March 15, 2023 188 189 480,000 Callable, Series ‘E’

2.800% due April 12, 2024 480 482

VeriSign Inc. (USD) 80,000 Callable 4.750% due July 15, 2027 107 110

ViaSat Inc. (USD) 253,000 Callable, Series ‘144A’

5.625% due April 15, 2027 350 352

VW Credit Canada Inc. 869,000 2.900% due March 29, 2021 873 875 260,000 2.650% due June 27, 2022 260 261 840,000 3.700% due November 14, 2022 849 866 347,000 3.250% due March 29, 2023 348 354 350,000 2.650% due September 26, 2024 349 350

Wells Fargo & Company 1,026,000 2.509% due October 27, 2023 1,024 1,024 810,000 Callable 3.184% due February 8, 2024 817 828

Westcoast Energy Inc. 600,000 Callable 3.770% due December 8, 2025 636 637

Windsor Solar Limited Partnership 250,855 Private Debt 4.159% due July 31, 2036 256 258

WMG Acquisition Corporation (USD) 164,000 Term Loan due November 1, 2023 214 214

Wynn Macau Limited (USD) 127,000 Callable 5.500% due October 1, 2027 175 172 54,000 5.125% due December 15, 2029 72 72

Xerox Corporation (USD) 153,000 Callable 4.125% due March 15, 2023 201 206

XPO Logistics Inc. (USD) 246,000 Callable, Series ‘144A’

6.750% due August 15, 2024 347 348

161,522 165,900

$ $





14

Federal Bonds & Guarantees – 0.0% United Mexican States (USD) 120,000 4.500% due April 22, 2029 172 171

Provincial Bonds & Guarantees – 1.1% Province of Ontario 500,000 2.600% due June 2, 2027 518 512 690,000 2.900% due June 2, 2028 727 722 2,250,000 3.500% due June 2, 2043 2,644 2,633 1,765,000 Zero Coupon 2.520% due June 2, 2045 866 937

Province of Saskatchewan 255,000 4.750% due June 1, 2040 342 340 873,000 2.750% due December 2, 2046 890 895

5,987 6,039

$ $

Exchange-Traded Funds – 0.1% 5,000 iShares iBoxx $ High Yield

Corporate Bond ETF 570 571

Transaction Costs (164)

TOTAL INVESTMENT

PORTFOLIO – 97.1% $ 469,280 $ 551,960

FOREIGN EXCHANGE FORWARD

CONTRACTS (SCHEDULE 1) – 0.3% 1,430

TOTAL PORTFOLIO $ 553,390

Note: Percentages shown relate investments at fair value to Net Assets as at the period end.

* Related party to the Fund as an affiliated entity of TD Asset Management Inc.

$ $





Schedule 1

Foreign Exchange Forward Contracts (in 000s except contract price and total number of contracts) as at December 31, 2019 Settlement Currency to be Currency to be Contract Unrealized Date Delivered Fair Value Received Fair Value Price Appreciation

January 31, 2020 7,356 USD $ 9,551 9,618 CAD $ 9,618 1.30749 $ 67 January 31, 2020 9,130 USD 11,854 11,921 CAD 11,921 1.30529 to 1.31610 67 January 31, 2020 6,532 USD 8,480 8,540 CAD 8,540 1.30748 60 January 31, 2020 5,108 USD 6,632 6,678 CAD 6,678 1.30742 46 January 31, 2020 1,354 USD 1,758 1,770 CAD 1,770 1.30743 12 January 31, 2020 1,496 USD 1,942 1,953 CAD 1,953 1.30518 to 1.30745 11 January 31, 2020 300 USD 389 392 CAD 392 1.30743 3 January 31, 2020 130 USD 169 170 CAD 170 1.30746 1 February 28, 2020 23,491 USD 30,497 31,201 CAD 31,201 1.32824 704 February 28, 2020 8,458 USD 10,981 11,234 CAD 11,234 1.32821 253 February 28, 2020 6,653 USD 8,637 8,836 CAD 8,836 1.32823 199 February 28, 2020 4,201 USD 5,454 5,580 CAD 5,580 1.32822 126 February 28, 2020 1,018 USD 1,322 1,353 CAD 1,353 1.32821 31 February 28, 2020 966 USD 1,254 1,283 CAD 1,283 1.32825 29 February 28, 2020 483 USD 627 642 CAD 642 1.32823 15 March 31, 2020 474 USD 616 623 CAD 623 1.31222 7 March 31, 2020 230 USD 299 302 CAD 302 1.31223 3

$ 100,462 $ 102,096 $ 1,634

Settlement Currency to be Currency to be Contract Unrealized Date Delivered Fair Value Received Fair Value Price Depreciation

January 31, 2020 2,975 CAD $ 2,975 2,276 USD $ 2,954 1.30748 $ (21) January 31, 2020 683 CAD 683 522 USD 678 1.30742 (5) February 28, 2020 4,943 CAD 4,943 3,721 USD 4,831 1.32249 to 1.32824 (112) February 28, 2020 2,322 CAD 2,322 1,762 USD 2,287 1.29946 to 1.32645 (35) February 28, 2020 749 CAD 749 566 USD 735 1.31783 to 1.32480 (14) February 28, 2020 466 CAD 466 351 USD 456 1.32212 to 1.32975 (10) February 28, 2020 86 CAD 86 65 USD 85 1.31720 (1) February 28, 2020 148 GBP 255 253 CAD 253 1.70936 (2) March 31, 2020 416 CAD 416 317 USD 412 1.31222 (4)

$ 12,895 $ 12,691 $ (204)

TOTAL NUMBER OF CONTRACTS: 55 TOTAL UNREALIZED APPRECIATION (DEPRECIATION) $ 1,430

15


Fund-Specific Notes to the Financial Statements

The Fund (I) The Fund was incepted on August 24, 1987 and its operations commenced on November 30, 1987.

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

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

(IV) The investment objective of the Fund is to seek to provide monthly income with capital appreciation as a secondary objective, by investing primarily in income-producing securities. In seeking to achieve this objective, the Fund invests primarily in a diversified portfolio of Canadian securities which may include government and corporate debt obligations (including non-investment grade corporate debt obligations), other evidences of indebtedness (including investments in loans), dividend-paying equity securities and exchange-traded funds. The Fund uses a bottom-up strategy that emphasizes the analysis of individual companies to determine if their income distributions can be maintained and increased over time. This analysis also focuses on selecting securities and allocating investments among asset classes with the objective to seek to maximize risk-adjusted returns. Generally, the Fund employs a “buy-and-hold” strategy.

(V) As at December 31, 2019, the Fund’s related party investment holdings as a percentage of its net assets was 5.7% (December 31, 2018: 6.3%).

(VI) O-Series was re-launched on October 22, 2019. O-Series was previously terminated on June 13, 2018 due to full redemption by unitholders.

Effective July 26, 2018, TD Asset Management Inc. changed the names of certain series of the Fund as follows: • From H-Series to H8 Series • From T-Series to T8 Series • From S-Series to FT8 Series

FT5 Series was launched on August 16, 2018 and D-Series was launched on January 15, 2019.

(VII) On October 25, 2019, TD Balanced Income Fund (the “Discontinuing Fund”) was merged into the Fund (the “Continuing Fund”). Pursuant to the transaction, the Continuing Fund acquired all of the net assets of the Discontinued Fund at fair value in exchange for units of the equivalent series of the Continuing Fund as at the merger date. The value of the units issued in connection with the merger was equal to the market value of the net assets transferred from the Discontinued Fund. The merger was effected on a tax-deferred basis. The Discontinued Fund was terminated and wound-up following the merger. The financial statements of the Continuing Fund do not include the operating results of the Discontinued Fund prior to the merger date.

The number of units issued and the fair value of net assets acquired by the Continuing Fund as at the merger date were as follows:

Fair Value of Number of Net Assets Discontinued Fund/ Units Issued by Acquired by Series Units of Series Units of the Continuing the Continuing Discontinued Fund Continuing Fund Fund (in 000s) Fund (in 000s)

TD Balanced Income Fund Investor Series Investor Series 5,344 $ 141,821 Advisor Series Advisor Series 1,027 13,297 F-Series F-Series 624 8,080 O-Series O-Series 1,737 17,406

Management Fees and Administration Fees (%) (Note 6) for the periods ended December 31, 2019 and 2018 (exclusive of GST and HST)

Annual Rate

Management Administration Series Fees• Fees

Investor Series 1.95 0.08 Advisor Series 1.95 0.08 F-Series 1.00 N/A H8 Series 1.95 0.08 FT5 Series 1.00 N/A FT8 Series 1.00 N/A T8 Series 1.95 0.08 D-Series 1.25 0.08 O-Series 0.00 N/A

• Includes management fees paid by the Fund and the proportionate management fees, if any, of the Underlying Funds managed by TDAM held by the Fund. However, no management fees are payable by the Fund that, to a reasonable person, would duplicate a fee payable by the Underlying Funds for the same services.

Effective October 25, 2019, the management fee rate charged to Investor Series, Advisor Series, H8 Series and T8 Series was changed from 2.00% to 1.95%.

Brokerage Commissions and Soft Dollars (in 000s) (Notes 3 and 6) for the periods ended December 31, 2019 and 2018

2019 2018

Total Brokerage Commissions $ 200 $ 162

Commissions Paid to Related Parties 12 13

Soft Dollars 16 12

Tax Loss Carry Forwards (in 000s) (Note 7) as at December 31, 2019 None for the Fund.


16


Securities Lent (Note 3)

(I) SECURITIES LENDING INCOME

A reconciliation of the gross amount generated from the securities lending transactions to the securities lending income to the Fund for the periods ended December 31, 2019 and 2018 is as follows:

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

2019 2018 2019 2018

Gross Securities Lending Income $ 46 $ 17 100.0 100.0

Agent Fees – The Bank of New York Mellon (9) (3) (18.7) (19.4)

Securities Lending Income to the Fund before Tax Reclaims (Withholding Taxes) 37 14 81.3 80.6

Tax Reclaims (Withholding Taxes) (3) (1) (6.3) (3.2)

Net Securities Lending Income $ 34 $ 13 75.0 77.4

(II) SECURITIES LENT AND COLLATERAL HELD (in 000s) The table below summarizes the aggregate securities lent and related collateral held by the Fund as at December 31, 2019 and 2018.

2019 2018

Fair Value of Securities Lent $ 7,435 $ 7,274

Fair Value of Collateral Held 7,858 7,696

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.

Financial Risk Management (Notes 3, 4 and 8) as at December 31, 2019 and 2018

(I) INTEREST RATE RISK

The table below summarizes the Fund’s exposure to interest rate risk as at December 31, 2019 and 2018 by remaining term to maturity. The table also illustrates the potential impact to the Fund’s net assets had the prevailing interest rates changed by 1 percent, assuming a parallel shift in the yield curve, with all other variables held constant. The Fund’s sensitivity to interest rate changes was estimated using the weighted average duration of its debt instruments. In practice, the actual trading results may differ from these ap -prox imate sensitivity analysis amounts and the differences could be material.

Term to Maturity Total Exposure (in 000s)

Debt Instruments 2019 2018

Less than 1 year $ 2,066 $ 9,900 1-5 years 60,818 35,500 5-10 years 59,983 37,937 > 10 years 49,243 24,109

Total $ 172,110 $ 107,446

Impact on Net Assets (in 000s) $ 11,798 $ 5,969

Impact on Net Assets (%) 2.1 1.6

(II) CURRENCY RISK

The following tables indicate the currencies (other than the Fund’s functional currency) to which the Fund had exposure to as at December 31, 2019 and 2018, including the underlying principal amount of foreign exchange forward contracts, as applicable. The tables also illustrate the potential impact to the Fund’s net assets if the Fund’s functional currency had strengthened or weak -ened by 5 percent in relation to all exposure to other currencies, with all other variables held constant. In practice, the actual trading results may differ from these approximate sensitivity amounts and the differences could be material.

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

December 31, 2019 Australian Dollar $ 3,274 $ 0 $ 3,274 $ 164 British Pound 6,137 (255) 5,882 294 Danish Krone 0 0 0 0 Euro 8,123 0 8,123 406 Hong Kong Dollar 3,283 0 3,283 164 Japanese Yen 8,944 0 8,944 447 Swedish Krona 0 0 0 0 United States Dollar 119,579 (88,025) 31,554 1,578

Total $ 149,340 $ (88,280) $ 61,060 $ 3,053

As a Percentage of Net Assets (%) 10.8 0.6

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

December 31, 2018 Australian Dollar $ 4,306 $ 0 $ 4,306 $ 215 British Pound 5,783 0 5,783 289 Danish Krone 3,649 (62) 3,587 179 Euro 5,994 0 5,994 300 Japanese Yen 1,617 0 1,617 81 Swedish Krona 3,520 0 3,520 176 Swiss Franc 376 0 376 19 United States Dollar 84,208 (54,267) 29,941 1,497

Total $ 109,453 $ (54,329) $ 55,124 $ 2,756

As a Percentage of Net Assets (%) 15.1 0.8

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

Fund-Specific Notes to the Financial StatementsTD Diversified Monthly Income Fund

17


(V) FINANCIAL INSTRUMENTS BY THE LEVEL IN THE FAIR VALUE HIERARCHY

(in 000s) The tables below illustrate the classification of the Fund’s financial instruments within the fair value hierarchy as at December 31, 2019 and 2018.

Level 1 Level 2 Level 3 Total

December 31, 2019 Equities $ 370,342 $ 8,937 $ 0 $ 379,279 Bonds 0 167,746 4,364 172,110 Underlying Funds 571 0 0 571 Foreign Exchange

Forward Contracts 0 1,450 0 1,450

370,913 178,133 4,364 553,410

Foreign Exchange Forward Contracts 0 (20) 0 (20)

$ 370,913 $ 178,113 $ 4,364 $ 553,390

Level 1 Level 2 Level 3 Total

December 31, 2018 Equities $ 237,911 $ 0 $ 0 $ 237,911 Bonds 0 107,446 0 107,446 Foreign Exchange

Forward Contracts 0 22 0 22

237,911 107,468 0 345,379

Foreign Exchange Forward Contracts 0 (1,974) 0 (1,974)

Written Options (86) 0 0 (86)

(86) (1,974) 0 (2,060)

$ 237,825 $ 105,494 $ 0 $ 343,319

As at the end of the periods, transfers between Level 1 and Level 2 were not significant.

(VI) RECONCILIATION OF LEVEL 3 FAIR VALUE MEASUREMENTS (in 000s) The table below reconciles the Fund’s Level 3 fair value measurements from January 1, 2019 to December 31, 2019.

Bonds

Balance at January 1, 2019 $ 0 Purchases and Accretion of Interest 4,193 Sales, Paydowns and Maturity (18) Net Transfers In (Out) 0 Gains (Losses)

Net Realized Gain (Loss) on Sale of Investments and Derivatives 0 Net Change in Unrealized Appreciation/Depreciation

of Investments and Derivatives 189

Balance at December 31, 2019 $ 4,364

Total Change in Unrealized Appreciation/Depreciation for Assets Held at December 31, 2019 $ 189

As at December 31, 2019, if the value of the Level 3 investments were to increase or decrease by 10%, the value of the Fund would increase or decrease by $436.

as at December 31, 2018 Not significant or applicable to the Fund.

(III) OTHER PRICE RISK

The table below summarizes the impact of other price risk to the Fund. As at December 31, 2019 and 2018, had the benchmark of the Fund increased or decreased by 5 percent, with all other variables held constant, the net assets of the Fund would have increased or decreased by approximately:

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

Benchmark 2019 2018 2019 2018

50% S&P/TSX Composite Total Return Index

40% FTSE Canada All Corporate Bond Index

10% MSCI World High Dividend Yield Index (Net Dividend, C$) $ 21,082 $ 14,032 3.7 3.8

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

(IV) CREDIT RISK

The table below summarizes the debt instruments by credit ratings as at December 31, 2019 and 2018.

Percentage of Total Percentage of Debt Instruments (%) Total Net Assets (%)

Credit Rating° 2019 2018 2019 2018

AAA 1.0 2.1 0.3 0.6 AA 8.2 13.5 2.4 4.0 A 34.4 34.3 10.5 10.1 BBB 40.4 37.1 12.3 11.0 BB 5.7 7.9 1.7 2.3 B 7.3 4.8 2.2 1.4 CCC 0.1 0.1 0.0 0.0 No Rating 2.9 0.2 0.9 0.1

Total 100.0 100.0 30.3 29.5

° Credit ratings are obtained from S&PGR, Moody’s or DBRS Ltd. rating agencies.


18


Investment Portfolio Concentration (%) (Note 8) The following tables summarize the Fund’s investment portfolio concentration as at December 31, 2019 and 2018:

2019

Corporate Bonds 29.2 Financials 19.9 Energy 11.0 Industrials 9.1 Materials 5.5 Information Technology 5.3 Utilities 3.8 Consumer Staples 3.5 Consumer Discretionary 2.4 Communication Services 2.3 Health Care 2.2 Cash (Bank Overdraft) 2.2 Real Estate 1.7 Provincial Bonds & Guarantees 1.1 Foreign Exchange Forward Contracts 0.3 Exchange-Traded Funds 0.1 Federal Bonds & Guarantees 0.0 Other Net Assets (Liabilities) 0.4

100.0

2018

Canadian Equities Energy 11.2 Materials 4.8 Industrials 2.5 Consumer Discretionary 2.0 Consumer Staples 1.3 Financials 16.6 Utilities 2.6 Income Trusts 1.3 Communication Services 1.9 U.S. Equities Energy 0.6 Industrials 2.5 Consumer Discretionary 0.8 Consumer Staples 1.3 Health Care 2.4 Financials 2.1 Information Technology 3.1 Utilities 0.5 Real Estate 2.0 Communication Services 1.3 International Equities Australia 1.1 France 0.4 Germany 0.5 United Kingdom 2.4 Options Options, Written 0.0 Canadian Bonds Federal Bonds & Guarantees 0.1 Provincial Bonds & Guarantees 1.2 Corporate Bonds 23.0 Global Bonds Cayman Islands 0.1 France 0.0 Luxembourg 0.0 Netherlands 0.2 United Kingdom 0.4 United States 4.3 Supranationals 0.2 Foreign Exchange Forward Contracts (0.5) Other Net Assets (Liabilities) 5.8

100.0

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, 2019.

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

December 31, 2019 iShares iBoxx $ High Yield Corporate Bond ETF $ 571 $ 24,703,578

As at December 31, 2018, the Fund did not hold any Underlying Funds.


19


Offsetting of Financial Assets and Liabilities (in 000s) (Note 3) The following table presents the recognized financial instruments that are offset, or subject to enforceable master netting arrangements, if certain conditions arise, or other similar agreements but that are not offset, and cash and financial instruments collateral received or pledged, as at December 31, 2019 and 2018 and shows in the Net Amount column what the impact would be in the Fund’s Statements of Financial Position if all set-off rights were exercised.

Amounts Net Amounts Related Amounts Not

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

of Recognized Statements the Statements of Financial Position

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

December 31, 2019 Derivative Assets $ 1,634 $ (184) $ 1,450 $ (5) $ 0 $ 1,445

Derivative Liabilities (204) 184 (20) 5 0 (15)

December 31, 2018 Derivative Assets $ 92 $ (70) $ 22 $ (2) $ 0 $ 20

Derivative Liabilities (2,044) 70 (1,974) 2 0 (1,972)


20

1. The Funds

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

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

The financial year-end for the Funds is December 31. The Statements of Financial Position are presented as at December 31, 2019 and 2018, as applicable. The Statements of Comprehensive Income, Statements of Changes in Net Assets Attributable to Holders of Redeemable Units and Statements of Cash Flows are presented for the twelve-month periods ended December 31, 2019 and 2018, as applicable. Where a Fund or series of a Fund was established during either period, the information for that Fund or series is provided from the inception date, as disclosed in the Fund-Specific Notes to the Financial Statements (“Fund-Specific Notes”), to the applicable period end date and a comparative statement has only been presented for any period for which that Fund was in existence as at the reporting date.

These financial statements were authorized for issue by TDAM on March 13, 2020.

2. Basis of Presentation

These financial statements have been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (“IFRS”). These financial statements have been prepared under the historical cost convention, as modified by the revaluation of financial assets and financial liabilities (including derivative financial instruments) at fair value through profit or loss (“FVTPL”).

3. Summary of Significant Accounting Policies

Financial Instruments Financial instruments include financial assets and financial liabilities, such as investments, derivatives, cash, and other receivables and payables. Derivatives that are reflected in the Statements of Financial Position as Derivative Assets (Liabilities) include rights, warrants, forwards, options, futures and swap contracts, where applicable, and are financial contracts between two or more parties, and whose value is derived from the performance of an underlying asset or group of assets. Underlying assets include stocks, bonds, currencies, interest rates and market indices. The Funds classify and measure financial instruments in accordance with IFRS 9, “Financial Instruments”. Upon initial recognition, financial instruments are measured at FVTPL. All financial assets and liabilities are recognized in the Statements of Financial Position when a Fund becomes a party to the contractual requirements of the instrument. Financial

instruments are derecognized when the right to receive cash flows from the instrument has expired or a Fund has transferred substantially all risks and rewards of ownership. As such, investment purchase and sale transactions are recorded as of the trade date.

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

The Funds have determined that they meet the definition of an ‘investment entity’ and as a result, the Funds measure subsidiaries, if any, at FVTPL. An investment entity is an entity that: obtains funds from one or more investors for the purpose of providing them with investment management services; commits to its investors that its business purpose is to invest funds solely for returns from capital appreciation, investment income, or both; and measures and evaluates the performance of substantially all of its investments on a fair value basis. The Funds’ investments may also include associates and joint ventures which are measured at FVTPL.

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

The accounting policies for measuring the fair value of the Funds’ invest-ments and derivatives are substantially similar to those used in measuring the Funds’ net asset value (“NAV”) for transactions with 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 accordance with IFRS. As at all dates presented, there were no differences between the Funds’ NAV per series unit and Net Assets per series unit.

nNotes to the Financial Statements

December 31, 2019 Annual Financial Statements21

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

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

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

(a) Securities not listed on any recognized public securities exchange are valued based on available quotations from recognized dealers in such securities, where readily available. If securities have no available broker-dealer bid/ask quotes, TDAM uses its own pricing model to price the securities. The pricing model will generally include the 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 yield analysis comparables as TDAM believes are relevant in the circumstances. Debt instruments are valued based on mid prices, where readily available. Other valuation techniques may be used, as described above, where applicable.

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

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

(d) The Funds may use foreign exchange forward contracts to hedge against or profit from fluctuations in foreign exchange rates. These contracts are valued on each valuation day based on the difference between the contract rates and the current forward rates at the measurement date applied to the contracts’ notional amount. The net change in unrealized appreciation or depreciation and the net realized gain or loss from closing out contracts are reflected in the Statements of Comprehensive Income as part of Net Gain (Loss) on Investments and Derivatives.

(e) Options contracts that are traded in exchange markets are valued at their closing prices on each valuation day. The premium received or paid on options written or purchased is included in the cost of the options. Any difference between the current value of the contract and the value of the contract originated is recognized as Net Change in Unrealized Appreciation/Depreciation. When options are closed or exercised, the difference between the premium and the amount paid or received, or the full amount of the premium if the option expires worthless, is reflected in the Statements of Comprehensive Income as Net Realized Gain (Loss). The cost of a security purchased will be reduced by the premium received on options when a written put option is exercised or increased by the amount paid on options when a purchased call option is exercised.

(f) The Funds may enter into standardized, exchange-traded futures contracts to purchase or sell a financial instrument at a contracted price on a specified future date. Any difference between the value at the close of business on the current valuation day and that of the previous valuation day is settled in cash daily and recorded in the Statements of Comprehensive Income as Derivatives Income (Loss). Any cash deposits or borrowings on margin are reflected in the Statements of Financial Position as Margin Deposit (Payable) on Derivatives. Short-term debt instruments as indicated in the Schedule of Investment Portfolio have been segregated and are held as margin against the futures contracts entered into by the Funds, as applicable.

(g) The TD Mutual Fund Trusts may enter into a credit default swap (“CDS”) agreements to gain exposure to debt instruments without investing in them directly. A CDS agreement is a bilateral over-the-counter derivative contract between a protection buyer and a protec -tion seller that exchange the credit risk of a specific issuer (reference entity). The protection buyer pays a periodic premium, often quarterly, to the protection seller to assume the credit risk associated with a particular credit event. Credit events include bankruptcy, a material default and debt restructuring for a specified reference asset. If a credit event occurs, the CDS agreements may be settled by either the physical delivery of the referenced asset for proceeds equal to par value or a cash payment equal to the loss amount. If there is no credit default event, no contingent amount is payable.

During the reporting periods, certain TD Mutual Fund Trusts have entered into CDS indices as protection seller. Any upfront payment made or received by these funds at the initiation of a CDS agreement is included in the CDS agreement’s fair value. Quarterly premiums received from the counterparty are accrued daily and recorded as Derivative Income (Loss) in the Statements of Comprehensive Income. Changes in the fair value of the CDS agreements outstanding at the reporting date are disclosed in the Statements of Comprehensive Income as Net Change in Unrealized Appreciation/Depreciation. Prices used to value the CDS are obtained directly from the data vendor or broker. When CDS agreements expire or are closed out, the net realized gain or loss is reflected in the Statements of Comprehensive Income as Net Realized Gain (Loss).

The TD Mutual Fund Trusts’ exposure to CDS is limited to the notional amount of the contract less any applicable recoverable amount, calculated by the product of the notional amount and the recovery rate of the respective reference entity.


Annual Financial StatementsDecember 31, 2019 22

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

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

Fair Value Hierarchy

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

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

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

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

All fair value measurements are recurring. The carrying values of Cash, Margin Deposit on Derivatives, Subscriptions Receivable, Interest and Dividends Receivables, Receivable for Investments Sold, Bank Overdraft, Margin Payable on Derivatives, Payable for Investments Purchased, Redemptions Payable, Distributions Payable, Accrued Liabilities and the redemption value of Funds’ obligation for Net Assets Attributable to Holders of Redeemable Units approximate their fair values due to their short-term nature.

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

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

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

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

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

The classification of the Funds’ financial instruments within the fair value hierarchy as at December 31, 2019 and 2018, and any transfers between levels at the end of the reporting periods as a result of changes in the lowest level input that is significant to the fair value measurement are disclosed in the Fund-Specific Notes, where applicable.

Interest in Unconsolidated Structured Entities A structured entity is an entity that has been designed so that voting or similar rights are not the dominant factor in deciding who controls the entity, such as when any voting rights relate to administrative tasks only and the relevant activities are directed by means of contractual arrange-ments. TDAM has determined that all of the underlying investment funds (“Underlying Funds”) in which the Funds invest are unconsolidated structured entities. Underlying Funds include conventional mutual funds and ETFs. 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.

The Funds may invest in Underlying Funds whose investment objectives range from seeking to achieve short- to long-term income and/or capital growth potential. The Funds’ interests in these securities as at December 31, 2019 and 2018 are included at their fair value in the Statements of Financial Position, which represent the Funds’ exposure in these Underlying Funds. The Funds do not provide and have not committed to provide any additional significant financial or other support to the Underlying Funds. The change in fair value of each of the Underlying Funds during the reporting periods is included in Net Change in Unrealized Appreciation/Depreciation in the Statements of Comprehensive Income as part of Net Gain (Loss) on Investments and Derivatives. Additional information on the Funds’ interest in Underlying Funds, where applicable, is provided in the Schedule of Investment Portfolio and Fund-Specific Notes.

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



As at December 31, 2019 and 2018, the fair value of mortgage-related and other asset-backed securities of these funds, where applicable, is disclosed as Investments in the Statements of Financial Position. The fair value represents the maximum exposure to losses at those dates. The change in fair value of mortgage-related and other asset-backed securities during the reporting periods is included in Net Change in Unrealized Appreciation/Depreciation in the Statements of Comprehensive Income as part of Net Gain (Loss) on Investments and Derivatives.

Translation of Foreign Currencies A Fund’s functional currency, as disclosed in the Fund-Specific Notes, represents the currency that TDAM views to most faithfully represent the economic effects of the Fund’s underlying transactions, events and conditions taking into consideration how units are issued or redeemed and how returns are measured. Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates that transactions occur. Assets and liabilities denominated in a foreign currency are translated into the functional currency using the exchange rate prevailing at the measurement date.

Realized foreign exchange gains and losses on the sale of investments and derivatives are included in Net Realized Gain (Loss). Unrealized foreign exchange gains and losses on investments and derivatives are included in Net Change in Unrealized Appreciation/Depreciation. Realized and unrealized foreign exchange gains and losses relating to income, cash, other assets and liabilities are presented as Foreign Exchange Gain (Loss) on Cash and Other Net Assets in the Statements of Comprehensive Income.

Offsetting of Financial Assets and Liabilities Financial assets and liabilities are offset and the net amount reported in the Statements of Financial Position where the Funds have a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or realize the asset and settle the liability simultaneously. In the normal course of business, the Funds may enter into various master netting agreements or other similar arrange -ments that do not meet the criteria for offsetting in the Statements of Financial Position but still allow for the related amounts to be set-off in certain circumstances, such as bankruptcy or the termination of the contracts. Offsetting information, where applicable, is presented in the Fund-Specific Notes.

Reverse Repurchase Agreements Certain TD Mutual Fund Trusts may enter into reverse repurchase transactions. In a reverse repurchase transaction, a fund buys a security at one price from a third party and agrees to sell the same security back to the same party at a specified price on an agreed future date and the difference is reflected as Income from Reverse Repurchase Agreements in the Statements of Comprehensive Income.

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

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

Margin Deposit (Payable) on Derivatives Margin accounts represent margin deposits or payable in respect of derivatives entered into by the Funds.

Receivable for Investments Sold/Payable for Investments Purchased Receivable for Investments Sold and Payable for Investments Purchased represent trades that have been contracted for but not yet settled or delivered on the Statements of Financial Position dates.

Valuation of Series Units TDAM generally calculates the NAV for each series of the Funds as at 4 p.m. Eastern Time on each day that the Toronto Stock Exchange is open for trading. However, in some unforeseen circumstances, the series NAV per unit may be calculated at another time.

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

The Net Assets Attributable to Holders of Redeemable Units – Per Series Unit is determined by dividing the total Net Assets Attributable to Holders of Redeemable Units of each series of the Funds by the total number of units outstanding of that series as at the reporting date.

Income Recognition Interest for Distribution Purposes as shown in the Statements of Comprehensive Income consists of interest income from cash and the coupon interest on debt instruments accounted for on an accrual basis. Interest receivable is included in Interest and Dividends Receivables in the Statements of Financial Position based on the debt instruments’ stated rates of interest. The Funds do not amortize premiums paid or discounts received on the purchase of debt securities except for zero coupon bonds which are amortized.

Dividend income from equities and ETFs are recognized on ex-dividend dates and distributions from underlying mutual funds are recognized on ex-distribution dates. Dividends received from ETFs are recognized in the Statements of Comprehensive Income based on the nature of the underlying components such as interest income, dividend income, capital gains and return of capital. Distributions received from underlying mutual funds are included in Distributions from Underlying Funds in the Statements of Comprehensive Income.

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



Investment Transactions and Transaction Costs For the purposes of calculating realized and unrealized gains and losses from investment transactions, the cost of each investment security is determined on an average cost basis, excluding transaction costs.

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

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

Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units – Per Series Unit The Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units – Per Series Unit is calculated by dividing the Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units of each series by the weighted average units outstanding of that series for the reporting period, except when a series was established during the reporting period, in which case the Weighted Average Units Outstanding is calculated from the date of commencement of operation of that series.

4. Critical Accounting Estimates and Judgments

The preparation of financial statements requires management to use judgment in applying its accounting policies and to make estimates and assumptions about the future. The following discusses the most significant accounting judgments and estimates that the Funds have made in preparing the financial statements:

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

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

Investment Entity In determining whether a Fund meets the definition of an investment entity, TDAM may be required to make significant judgments about whether a Fund has the typical characteristics of an investment entity. Each Fund may hold only one investment, an underlying fund (or have only one investor or have investors that are its related parties); however, consistent with the investment entity definition, each Fund primarily obtains funds from one or more investors for the purpose of providing investment management services, commits to its investors that the business purpose is to invest the funds solely for returns from capital appreciation, investment income or both, and measures and evaluates the performance of its investments on a fair value basis.

5. Redeemable Units

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

TD Mutual Fund Trusts Each TD Mutual Fund Trust is authorized to issue an unlimited number of units of multiple series that rank equally and are available for sale under a single simplified prospectus. In addition, each of these funds is also authorized to issue an unlimited number of units of multiple series to be sold under a confidential offering memorandum or other separate simplified prospectus. The various series that may be offered by these funds are as described below.

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

H5 Series Offered on a no-load basis to investors who wish to receive and H8 Series: a regular monthly cash flow from the Funds. Monthly distri-

butions may consist of net income, net realized capital gains and/or a return of capital.

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

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

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

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



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

T5 Series Offered to investors who seek investment advice; want the and T8 Series: option of transacting on a front-end load, back-end load,

low-load or low-load-2 basis; and who wish to receive a regular monthly cash flow from the Funds. Monthly distribu-tions may consist of net income, net realized capital gains and/or a return of capital.

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

FT5 Series Offered to investors, through fee-based financial advisors and FT8 Series: or dealer-sponsored “wrap accounts”, who wish to receive

a regular monthly cash flow from the Funds. Monthly distributions may consist of net income, net realized capital gains, and/or a return of capital. These series may also be offered to other investors who pay an annual fee to their dealer instead of transactional sales charges.

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

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

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

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

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

investment, as determined by TDAM from time to time.

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

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

Effective November 1, 2019, the back-end load, low-load and low-load-2 purchase options of Advisor Series, T5 Series and T8 Series were closed to all purchases by investors. Switches and conversions are permitted if shares or units of the TD Mutual Funds and TD Managed Assets Program Portfolios being switched or converted from are held in the same purchase option.

Effective July 26, 2018, H-Series was renamed as H5 Series or H8 Series, T-Series was renamed as T5 Series or T8 Series and S-Series was renamed as FT5 Series or FT8 Series. Refer to Fund-Specific Notes of the applicable Funds for further details.

TD Managed Assets Program Portfolios Each TD Managed Assets Program Portfolio is authorized to issue an unlimited number of units of multiple series that rank equally and are available for sale under a single simplified prospectus. The various series that may be offered by these funds are as described below.

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

H5 Series: Offered on a no-load basis to investors who wish to receive a regular monthly cash flow from the Funds. Monthly distributions may consist of net income, net realized capital gains and/or a return of capital.

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

K5 Series: Offered on a no-load basis to large investors and others who make the required minimum investment, as determined by TDAM from time to time, and who wish to receive a regular monthly cash flow from the Funds. Monthly distribu -tions may consist of net income, net realized capital gains, and/or a return of capital.

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

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

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

T5 Series: Offered to investors who seek investment advice; want the option of transacting on a front-end load, back-end load, low-load or low-load-2 basis; and who wish to receive a regular monthly cash flow from the Funds. Monthly distribu -tions may consist of net income, net realized capital gains and/or a return of capital.

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

FT5 Series Offered to investors, through fee-based financial advisors and FT8 Series: or dealer-sponsored “wrap accounts”, who wish to receive

a regular monthly cash flow from the Funds. Monthly distributions may consist of net income, net realized capital gains, and/or a return of capital. These series may also be offered to other investors who pay an annual fee to their dealer instead of transactional sales charges.

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



WT5 Series Offered to investors who wish to receive a regular and WT8 Series: monthly cash flow from the Funds, through certain wealth

management businesses of TD Bank Group, including “certain divisions of TDWCI, or other dealers authorized by TDAM, who pay an annual fee to their dealer instead of transactional sales charges. Monthly distributions may consist of net income, net realized capital gains, and/or a return of capital.

Effective November 1, 2019, the back-end load, low-load and low-load-2 purchase options of Advisor Series, and T5 Series were closed to all pur -chases by investors. Switches and conversions are permitted if shares or units of the TD Mutual Funds and TD Managed Assets Program Portfolios being switched or converted from are held in the same purchase option.

Effective October 25, 2018, H-Series, K-Series, T-Series, S-Series and WT-Series were renamed as H5 Series, K5 Series, T5 Series, FT5 Series and WT5 Series, respectively. Refer to Fund-Specific Notes of the applicable Funds for further details.

Units of TD Mutual Fund Trusts and TD Managed Assets Program Portfolios are redeemable at the option of the unitholder in accordance with their respective provisions of the Declarations of Trust or Trust Indenture. Units of these funds are issued or redeemed on a daily basis at the NAV per series unit next determined after the subscription, switch, conversion order or redemption request, respectively, is received by TDAM. Subscriptions and redemptions include units converted from one series to another series within a Fund in the Statements of Changes in Net Assets Attributable to Holders of Redeemable Units. However, conversions between series within a Fund are excluded from Proceeds from Issuances of Redeemable Units and Amounts Paid on Redemption of Redeemable Units in the Statements of Cash Flows.

6. Related Party Transactions

Capital TDAM, affiliates of TDAM, and/or other investment funds managed by TDAM may invest in units of the Funds from time to time. The investment made by related parties is disclosed in the Fund-Specific Notes if significant.

Management Fees (a) TD Mutual Fund Trusts

In consideration for the provision of management, distribution, and portfolio management services and oversight of any portfolio sub-advisory services provided to the TD Mutual Fund Trusts, TDAM receives an annual management fee in respect of certain series of these funds. The management fee is calculated and accrued on a daily basis for each applicable series based on the NAV of that series and paid monthly to TDAM.

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

(b) TD Managed Assets Program Portfolios

In consideration for the provision of management, distribution and portfolio management services to the TD Managed Assets Program Portfolios, each series of these funds pay TDAM an annual management fee. The management fee is calculated and accrued on a daily basis for each series based on the NAV of that series and paid monthly to TDAM.

Where the TD Mutual Fund Trusts and TD Managed Assets Program Portfolios invest in Underlying Funds, there are fees and expenses payable by the Underlying Funds in addition to those paid by the Funds. However, no management fees are payable by Funds that invest in Underlying Funds that, to a reasonable person, would duplicate a fee payable by the Underlying Funds for the same services. TDAM may waive all or a portion of the management fees charged to the Funds, which may be discontinued at any time by TDAM at its discretion without notice to unitholders. Detailed information on the management fees of the Funds is provided in the Fund-Specific Notes.

Administration Fees (a) TD Mutual Fund Trusts

In consideration for paying certain operating expenses, TDAM is paid an annual administration fee with respect to certain series of the TD Mutual Fund Trusts. The administration fee includes recordkeeping and communi -cation costs, custodial costs, legal fees, audit fees, filing fees and bank charges. The administration fee is calculated and accrued on a daily basis for each applicable series based on the NAV of that series and paid monthly to TDAM. Annual administration fees for each series of these funds, where applicable, are provided in the Fund-Specific Notes.

The administration fee is payable in respect of Investor Series, H5 Series, H8 Series, D-Series, Advisor Series and T5 Series and T8 Series of the TD Mutual Fund Trusts, as applicable, other than the money market funds, TD Ultra Short Term Bond Fund, TD Short Term Bond Fund, TD Canadian Bond Fund, TD Global Conservative Opportunities Fund, TD Global Balanced Opportunities Fund, the Index funds and Advisor Series units of TD U.S. Equity Portfolio. The administration fee is also payable in respect of Premium Series and K-Series of 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 and TD Global Conservative Opportunities Fund.

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


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



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

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

TDAM has established an IRC in respect of the Funds and the Underlying Funds managed by TDAM. The IRC acts as an impartial and independent committee to review and provide recommendations or, if appropriate, approvals respecting any transactions in which TDAM may have a conflict of interest. The IRC prepares, at least annually, a report of its activities for unitholders of the Funds.

The IRC has approved standing instructions to permit the Funds and/or the Underlying Funds managed by TDAM to enter into the following securities transactions:

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

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

(iii) purchases or sales of securities of an issuer from or to another investment fund or discretionary managed account managed by TDAM; and

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

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

The compensation and relevant expenses of IRC members are allocated among the investment funds managed by TDAM and disclosed in the Statements of Comprehensive Income as Independent Review Committee Fees.

(a) TD Mutual Fund Trusts

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

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

For other series of the TD Mutual Fund Trusts, TDAM pays all of the operating expenses (including services provided by TDAM or its affiliates), other than costs and expenses associated with: all taxes; borrowing; the IRC; compliance with any new governmental and regulatory require -ments, and new types of costs or expenses.


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

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

Taxes on Expenses The Funds also pay applicable goods and services tax and harmonized sales tax at a blended rate to TDAM on management fees, administration fees and certain operating expenses based on the province or territory of residence of the investors in each series of the Funds, which are included with the respective expense in the Statements of Comprehensive Income.

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

The Accrued Liabilities in the Statements of Financial Position represents the amount of management fees, administration fees and operating expenses (including applicable taxes) payable to TDAM by the Funds as at the reporting period end.

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

Brokerage commissions (including other transaction costs) paid on securities transactions and amounts paid to related parties of TD for brokerage services provided to these funds for the reporting periods ended December 31, 2019 and 2018, where applicable, are disclosed in the Fund-Specific Notes.

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

For debt instruments traded in the over the counter markets where client brokerage commissions are not charged, soft dollars or client brokerage commissions are not generated. For equities or other securities where client brokerage commissions are charged, the soft dollar portion of the amount paid or payable for goods and services other than order execu-tion for the TD Mutual Fund Trusts is not generally ascertainable. Any ascertainable soft dollar value received under the soft dollar arrangement entered into by the portfolio advisers or TDAM, where applicable, is disclosed in the Fund-Specific Notes.




These funds do not incur any brokerage commissions for executing transactions in the underlying mutual funds, and accordingly will not receive any investment or research services from brokers in exchange for commissions paid for such transactions. However, if these funds invest in underlying ETFs, brokerage commissions will be paid on the purchase or sale of units of the underlying ETFs and amounts paid to related parties of TD for brokerage services provided to these funds for the reporting periods ended December 31, 2019 and 2018, where applicable, are disclosed in the Fund-Specific Notes.

Certain of the Underlying Funds have incurred brokerage commissions, a portion of which may have been received by the Underlying Funds’ investment advisers in the form of investment or research services (“soft dollars”). Such amounts for each of the TDAM managed Underlying Funds are disclosed in the Underlying Funds’ financial statements, where ascertainable.

7. Taxation

The Funds (except for the TD Managed ETF Portfolios) qualify or intend to qualify as mutual fund trusts under the Income Tax Act (Canada) (“Tax Act”), unless otherwise disclosed in the Fund-Specific Notes. TD Managed ETF Portfolios qualify as unit trusts under the Tax Act. All or substantially all of the net investment income and sufficient amounts of net capital gains realized in any taxation year are distributed to unitholders such that no income tax is payable by the Funds, except that in certain circumstances, a Fund that is not a mutual fund trust may become liable to pay alternative minimum tax under the Tax Act. As a result of the distributions, the Funds have determined that they are in substance not taxable and therefore, do not record income taxes in the Statements of Comprehensive Income nor do they recognize any deferred tax assets or liabilities in the Statements of Financial Position. The Funds’ capital and/or non-capital losses carry forward, where appli -cable, are provided in the Fund-Specific Notes. Capital losses have no expiry. Non-Capital losses can be carried forward for up to twenty years.

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

8. Financial Risk Management

Financial Risk Factors Each Fund is exposed to a variety of financial risks: these may include market risk (including interest rate risk, currency risk, and other price risk), credit risk, liquidity risk and concentration risk. All investments present a risk of loss of capital.

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

If a Fund invests in Underlying Funds, TDAM seeks to reduce financial risks by diversifying investments across the three main asset classes: money market investments for safety, bonds for income and equity investments for growth, where applicable. Since different types of investments tend to move independently from one another, positive performance in one asset class may help to offset negative performance in another, thereby reducing volatility and overall risk in the long-term.

The Funds are managed in accordance with their respective Investment Restrictions.

(a) Market Risk (i) Interest Rate Risk

Interest rate risk arises from the possibility that changes in interest rates will affect the future cash flows or the fair values of interest-bearing investments.

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

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

(ii) Currency Risk

A Fund may hold financial instruments denominated in currencies other than its functional currency. It is therefore exposed to currency risk, as the value of the financial instruments denominated in other currencies will fluctuate due to changes in the foreign exchange rates of those currencies in relation to the Fund’s functional currency.

Where a Fund invests in any Underlying Funds, it is exposed to indirect currency risk in the event that the Underlying Funds invest in financial instruments that are denominated in a currency other than the Underlying Funds’ functional currency.

A Fund and/or its Underlying Funds may enter into foreign exchange forward contracts for hedging purposes to reduce its foreign currency exposure or to establish exposure to foreign currencies.

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



(iii) Other Price Risk

Other price risk is the risk that securities will fluctuate in value because of changes in market prices (other than those arising from interest rate risk or currency risk). TDAM seeks to reduce this risk through its Investment Restrictions.

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

Where a Fund invests in a single Underlying Fund, it is exposed to indirect other price risk in the event that the Underlying Fund invests in equity securities. As a result, other price risk, reflecting this indirect exposure, is provided in the Fund-Specific Notes.

Where a Fund invests in several Underlying Funds, its exposure to other price risk includes all investments in Underlying Funds. A Fund’s direct exposure to other price risk, where applicable, is disclosed in the Fund-Specific Notes.

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

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

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

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

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

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

A Fund may also be exposed indirectly to credit risk if it invests in Underlying Funds in the event that the Underlying Funds invest in debt instruments or derivatives.

The Funds and their Underlying Funds managed by TDAM only buy and hold short-term notes with a minimum of R-1 Low credit rating by DBRS Limited or an equivalent rating from another recognized credit rating agency.

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

The TD Mutual Fund Trusts and the Underlying Funds held by the Funds may also engage in securities lending transactions. For these funds that are managed by TDAM, the securities lending transactions are with counterparties that have a minimum credit rating of A by S&PGR or an equivalent rating from another credit agency. The value of cash or securities held as collateral by these funds in connection with these transactions is at least 102 percent of the fair value of the securities loaned. The collateral and loaned securities are marked to market on each business day. The aggregate fair value of the securities loaned, together with repurchase transactions, are limited to 50 percent of each fund’s NAV determined immediately after the fund enters into any such transaction. Information about the fair values of securities lent and collateral held and securities lending income earned, where applicable, is disclosed in the Fund-Specific Notes.

In the TD Managed Assets Program Portfolios, where applicable, the portfolio adviser reviews these funds’ credit positions as part of the investment management process.

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

All non-derivative financial liabilities, other than redeemable units outstanding, are due in less than 3 months.

(d) Concentration Risk Concentration risk arises as a result of the concentration of exposures within the same category, whether it is geographical location, security type or industry sector. A Fund’s concentration risk is disclosed in the Fund-Specific Notes.



9. Capital Risk Management

Units issued and outstanding represent the capital of the Funds. The Funds do not have any specific capital requirements on the subscription and redemption of units, other than certain minimum subscription requirements. Changes in the Funds’ capital during the reporting periods are reflected in the Statements of Changes in Net Assets Attributable to Holders of Redeemable Units. TDAM is responsible for managing the capital of the Funds in accordance with each Fund’s investment objec -tives and for managing liquidity in order to meet redemption requests.

10. Comparative Financial Information

Where applicable, certain comparative figures in the Statements of Comprehensive Income have been reclassified. Amounts related to real-ized foreign exchange gains and losses on income have been reclassified from income into Foreign Exchange Gain (Loss) on Cash and Other Net Assets in the Statements of Comprehensive Income. Amounts related to unrealized foreign exchange gains and losses on other assets and liabil-ities have been reclassified from Net Change in Unrealized Appreciation/ Depreciation into Foreign Exchange Gain (Loss) on Cash and Other Net Assets. For these reclassifications, there was no impact on the Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units.

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



Currency codes used throughout the report:

Currency Code

Description

Currency Code

Description

Currency Code

Description

AED UAE Dirham HKD Hong Kong Dollar PHP Philippine Peso

ARS Argentine Peso HUF Hungarian Forint PKR Pakistan Rupee

AUD Australian Dollar IDR Indonesian Rupiah PLN Polish Zloty

BRL Brazilian Real ILS Israeli Shekel QAR Qatari Riyal

CAD/C$ Canadian Dollar INR Indian Rupee RON Romanian Leu

CHF Swiss Franc JOD Jordanian Dinar RUB Russian Ruble

CLP Chilean Peso JPY Japanese Yen SEK Swedish Krona

CNY/CNH China Renminbi KRW South Korean Won SGD Singapore Dollar

COP Colombian Peso LKR Sri Lanka Rupee THB Thai Baht

CZK Czech Koruna MAD Moroccan Dirham TRY Turkish Lira

DKK Danish Krone MXN Mexican Peso TWD New Taiwan Dollar

EGP Egyptian Pound MYR Malaysian Ringgit USD/US$ United States Dollar

EUR Euro NOK Norwegian Krone ZAR South African Rand

GBP British Pound NZD New Zealand Dollar

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Source: London Stock Exchange Group plc and its group undertakings (collectively, the “LSE Group”). © LSE Group 2019. FTSE Russell is a trading name of certain of the LSE Group companies. “FTSE®”, “Russell®”, and “FTSE Russell®” are trade marks of the relevant LSE Group companies and are used by any other LSE Group company under license. All rights in the FTSE Russell indexes or data vest in the relevant LSE Group company which owns the index or the data. Neither LSE Group nor its licensors accept any liability for any errors or omissions in the indexes or data and no party may rely on any indexes or data contained in this communication. No further distribution of data from the LSE Group is permitted without the relevant LSE Group company’s express written consent. The LSE Group does not promote, sponsor or endorse the content of this communication.

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

TD Exchange-Traded Funds are managed by TD Asset Management Inc., a wholly-owned subsidiary of The Toronto-Dominion Bank.

TDAM USA Inc. and Epoch Investment Partners Inc. are affiliates of TD Asset Management Inc. TD Asset Management operates through TD Asset Management Inc. in Canada and through TDAM USA Inc. in the United States. All entities are affiliates and wholly-owned subsidiaries of The Toronto-Dominion Bank.

All trademarks are the property of their respective owners.

® The TD logo and other trademarks are the property of The Toronto-Dominion Bank or its subsidiaries.

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