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TD U.S. Corporate Bond Fund 535274 (08/17) TD Mutual Funds for the period ended

nmanagement s Responsibility for Financial Reporting The accompanying unaudited interim financial report has been prepared by TD Asset Management Inc. ( TDAM ) as manager of the TD Mutual Fund Trusts, TD Managed Assets Program Portfolios and TD Managed ETF Portfolios (collectively the Funds and individually the Fund ) and approved by TDAM s board of directors. The manager is responsible for the integrity, objectivity and reliability of the data presented. This responsibility includes selecting appropriate accounting principles and making judgments and estimates consistent with International Financial Reporting Standards ( IFRS ). The manager is also responsible for the development of internal controls over the financial reporting process, which are designed to provide reasonable assurance that relevant and reliable financial information is produced, and the safeguarding of all assets of the Funds. The board of directors of TDAM is responsible for reviewing and approving the interim financial report and overseeing management s performance of its financial reporting responsibilities. On behalf of TDAM, manager of the Funds. Bruce Cooper David Lambie Director and Director and Chief Executive Officer Chief Financial Officer August 15, 2017 August 15, 2017 nnotice to Unitholders The Auditor of the Funds has not reviewed the TD Mutual Fund Trusts in this Financial Report TDAM, as manager of the Funds, appoints an independent auditor to audit the Funds annual financial statements. Applicable securities laws require that if an auditor has not reviewed the Funds interim financial report, this must be disclosed in an accompanying notice. 1

ntd U.S. Corporate Bond Fund (expressed in United States dollars) Statements of Financial Position (in 000s except per unit amounts) as at and December 31, 2016 (Unaudited) June 30, December 31, 2017 2016 Assets Current Assets Investments $ 554,386 $ 513,117 Cash 11,280 14,956 Interest Receivable 3,848 3,537 Subscriptions Receivable 1,978 477 571,492 532,087 Liabilities Current Liabilities Accrued Liabilities 4 3 Redemptions Payable 96 231 Distributions Payable 287 0 387 234 Net Assets Attributable to Holders of Redeemable Units $ 571,105 $ 531,853 Net Assets Attributable to Holders of Redeemable Units Per Series (Note 5) Investor Series $ 610 $ 228 Premium Series N/A $ 2,390 Advisor Series $ 629 $ 684 F-Series $ 2,127 $ 5,391 Premium F-Series N/A $ 3,056 D-Series $ 59 $ 28 Private Series $ 108,817 $ 98,412 O-Series $ 458,863 $ 421,664 $ 571,105 $ 531,853 Net Assets Attributable to Holders of Redeemable Units Per Series Unit Investor Series $ 10.02 $ 9.97 Premium Series N/A $ 9.98 Advisor Series $ 10.02 $ 9.98 F-Series $ 10.02 $ 9.98 Premium F-Series N/A $ 9.99 D-Series $ 9.91 $ 9.86 Private Series $ 9.55 $ 9.51 O-Series $ 10.04 $ 10.00 The accompanying notes are an integral part of the interim financial report. 2

ntd U.S. Corporate Bond Fund (expressed in United States dollars) Statements of Comprehensive Income (in 000s except per unit amounts) for the periods ended and 2016 (Unaudited) 2017 2016 Income Securities Lending Income $ 1 $ 9 Net Gain (Loss) on Investments Interest for Distribution Purposes 7,095 7,419 Net Realized Gain (Loss) (1,661) (900) Net Change in Unrealized Appreciation/ Depreciation 4,792 18,176 Net Gain (Loss) on Investments 10,226 24,695 Total Income (Net) 10,227 24,704 Expenses (Note 6) Management Fees 22 10 Securityholder Reporting Costs 8 22 Custodial Fees 1 2 Filing Fees 2 2 Administration Fees 1 0 Audit Fees 1 4 Interest Charges 1 0 Total Expenses before Waivers 36 40 Less: Waived Expenses (1) 0 Total Expenses (Net) 35 40 Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units before Tax 10,192 24,664 Tax Reclaims (Withholding Taxes) 0 (1) Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units $ 10,192 $ 24,663 2017 2016 Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units Per Series* Investor Series $ 3 $ 1 Premium Series $ 1 $ 14 Advisor Series $ 9 $ 5 F-Series $ 36 $ 23 Premium F-Series $ 7 $ 59 D-Series $ 1 $ 0 Private Series $ 1,801 $ 7,480 O-Series $ 8,334 $ 17,081 $ 10,192 $ 24,663 Weighted Average Units Outstanding for the Period Per Series* Investor Series 35 2 Premium Series 172 62 Advisor Series 71 18 F-Series 261 108 Premium F-Series 128 209 D-Series 6 2 Private Series 10,201 26,242 O-Series 43,654 46,326 Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units Per Series Unit* Investor Series $ 0.10 $ 0.28 Premium Series $ 0.00 $ 0.23 Advisor Series $ 0.13 $ 0.26 F-Series $ 0.14 $ 0.22 Premium F-Series $ 0.06 $ 0.28 D-Series $ 0.11 $ 0.14 Private Series $ 0.18 $ 0.29 O-Series $ 0.19 $ 0.37 * Series related to the converted and/or terminated series are for the period ended March 28, 2017. Refer to the Significant Events in the Fund-Specific Notes to the Interim Financial Report for further details. The accompanying notes are an integral part of the interim financial report. 3

ntd U.S. Corporate Bond Fund (expressed in United States dollars) Statements of Changes in Net Assets Attributable to Holders of Redeemable Units (in 000s) for the periods ended and 2016 (Unaudited) Investor Series Premium Series Advisor Series 2017 2016 2017 2016 2017 2016 Net Assets Attributable to Holders of Redeemable Units at Beginning of the Period $ 228 $ N/A $ 2,390 $ N/A $ 684 $ N/A Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units 3 1 1 14 9 5 Distributions to Holders of Redeemable Units (3) 0 (8) (3) (5) (1) Redeemable Unit Transactions Proceeds from Redeemable Units Issued 383 51 0 1,010 239 413 Reinvestments of Distributions to Holders of Redeemable Units 3 0 8 3 5 1 Early Redemption Fees on Redeemable Units 0 0 0 0 0 0 Redemption of Redeemable Units (4) 0 (2,391) (151) (303) (66) Net Increase (Decrease) from Redeemable Unit Transactions 382 51 (2,383) 862 (59) 348 Net Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units 382 52 (2,390) 873 (55) 352 Net Assets Attributable to Holders of Redeemable Units at End of the Period $ 610 $ 52 $ N/A $ 873 $ 629 $ 352 Redeemable Unit Transactions Redeemable Units Outstanding, Beginning of the Period 23 N/A 240 N/A 69 N/A Redeemable Units Issued 38 5 (1) 100 24 40 Redeemable Units Issued on Reinvestments 0 0 1 0 0 0 Redeemable Units Redeemed 0 0 (240) (15) (30) (6) Redeemable Units Outstanding, End of the Period 61 5 N/A 85 63 34 F-Series Premium F-Series D-Series 2017 2016 2017 2016 2017 2016 Net Assets Attributable to Holders of Redeemable Units at Beginning of the Period $ 5,391 $ N/A $ 3,056 $ N/A $ 28 $ N/A Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units 36 23 7 59 1 0 Distributions to Holders of Redeemable Units (30) (7) (9) (15) 0 0 Redeemable Unit Transactions Proceeds from Redeemable Units Issued 1,756 7,186 0 5,105 64 29 Reinvestments of Distributions to Holders of Redeemable Units 31 7 9 15 0 0 Early Redemption Fees on Redeemable Units 0 0 0 0 0 0 Redemption of Redeemable Units (5,057) (1,850) (3,063) (811) (34) (1) Net Increase (Decrease) from Redeemable Unit Transactions (3,270) 5,343 (3,054) 4,309 30 28 Net Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units (3,264) 5,359 (3,056) 4,353 31 28 Net Assets Attributable to Holders of Redeemable Units at End of the Period $ 2,127 $ 5,359 $ N/A $ 4,353 $ 59 $ 28 Redeemable Unit Transactions Redeemable Units Outstanding, Beginning of the Period 540 N/A 306 N/A 3 N/A Redeemable Units Issued 176 702 0 503 6 3 Redeemable Units Issued on Reinvestments 3 1 1 1 0 0 Redeemable Units Redeemed (507) (181) (307) (80) (3) 0 Redeemable Units Outstanding, End of the Period 212 522 N/A 424 6 3 The accompanying notes are an integral part of the interim financial report. 4

ntd U.S. Corporate Bond Fund (expressed in United States dollars) Statements of Cash Flows (in 000s) for the periods ended and 2016 (Unaudited) 2017 2016 Cash Flows from (used in) Operating Activities Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units $ 10,192 $ 24,663 Adjustment For: Net Realized (Gain) Loss on Sale of Investments 1,661 900 Net Change in Unrealized Appreciation/ Depreciation of Investments (4,792) (18,176) Purchase of Investments (168,519) (1,498,675) Proceeds from Sale and/or Maturity of Investments 130,381 1,509,522 (Increase) Decrease in Interest Receivable (311) (71) (Increase) Decrease in Other Receivables 0 11 Increase (Decrease) in Accrued Liabilities 1 5 Net Cash from (used in) Operating Activities (31,387) 18,179 Cash Flows from (used in) Financing Activities Distributions Paid to Holders of Redeemable Units, Net of Reinvested Distributions (1,129) (2,115) Proceeds from Issuances of Redeemable Units 60,611 50,104 Amounts Paid on Redemption of Redeemable Units, Net of Early Redemption Fees (31,771) (51,877) Net Cash from (used in) Financing Activities 27,711 (3,888) Net Increase (Decrease) in Cash (3,676) 14,291 Cash (Bank Overdraft) at Beginning of the Period 14,956 106 Cash (Bank Overdraft) at End of the Period $ 11,280 $ 14,397 Interest for Distribution Purposes Received*, Net of Withholding Taxes $ 6,784 $ 7,348 * Included as part of Cash Flows from (used in) Operating Activities. The accompanying notes are an integral part of the interim financial report. 6

ntd U.S. Corporate Bond Fund (expressed in United States dollars) Schedule of Investment Portfolio (in 000s except number of Shares or Units/Par Value) as at (Unaudited) No. of Shares or Units/ Par Value Description Cost Fair Value Canadian Bonds 7.5% PROVINCIAL BONDS & GUARANTEES 0.2% Province of Ontario 1,090,000 2.00% due January 30, 2019 $ 1,106 $ 1,096 CORPORATE BONDS 7.3% Bank of Montreal 1,770,000 1.50% due July 18, 2019 1,768 1,754 1,000,000 Callable 2.55% due November 06, 2022 937 999 The Bank of Nova Scotia 3,050,000 2.05% due June 05, 2019 3,042 3,059 2,550,000 2.80% due July 21, 2021 2,567 2,587 1,390,000 4.50% due December 16, 2025 1,389 1,463 Canadian Natural Resources Limited 1,470,000 Callable 3.45% due November 15, 2021 1,482 1,511 2,575,000 Callable 3.80% due April 15, 2024 2,588 2,610 Canadian Pacific Railway Company 900,000 4.50% due January 15, 2022 990 966 CDP Financial Inc. 2,368,000 4.40% due November 25, 2019 2,616 2,437 Husky Energy Inc. 2,300,000 Callable 3.95% due April 15, 2022 2,327 2,380 Manulife Financial Corporation 1,750,000 4.15% due March 04, 2026 1,853 1,852 Petro-Canada 1,027,000 6.05% due May 15, 2018 1,132 1,064 Rogers Communications Inc. 800,000 6.80% due August 15, 2018 1,007 844 Royal Bank of Canada 5,570,000 2.15% due March 15, 2019 5,621 5,598 2,650,000 2.15% due March 06, 2020 2,647 2,658 4,315,000 4.65% due January 27, 2026 4,306 4,633 Suncor Energy Inc. 1,390,000 Callable 3.60% due December 01, 2024 1,405 1,425 TransCanada PipeLines Limited 605,000 9.875% due January 01, 2021 803 751 3,150,000 2.50% due August 01, 2022 3,051 3,148 41,531 41,739 Total Canadian Bonds 42,637 42,835 Global Bonds 89.6% AUSTRALIA 0.3% Westpac Banking Corporation 1,750,000 2.25% due January 17, 2019 1,784 1,759 IRELAND 1.2% GE Capital International Funding Company Unlimited Company 5,469,000 2.342% due November 15, 2020 5,384 5,515 1,442,000 3.373% due November 15, 2025 1,462 1,493 6,846 7,008 NETHERLANDS 0.7% Shell International Finance BV 600,000 4.30% due September 22, 2019 692 632 3,065,000 2.125% due May 11, 2020 3,078 3,083 3,770 3,715 No. of Shares or Units/ Par Value Description Cost Fair Value NORWAY 0.2% Statoil ASA 1,000,000 1.95% due November 08, 2018 $ 1,002 $ 1,004 UNITED KINGDOM 0.6% HSBC Holdings PLC 3,500,000 3.40% due March 08, 2021 3,592 3,599 UNITED STATES 86.6% 21st Century Fox America Inc. 1,250,000 3.00% due September 15, 2022 1,246 1,270 Abbott Laboratories 4,750,000 2.35% due November 22, 2019 4,748 4,788 2,400,000 Callable 2.90% due November 30, 2021 2,399 2,429 2,500,000 Callable 3.40% due November 30, 2023 2,544 2,563 Amgen Inc. 2,640,000 Callable 2.20% due May 22, 2019 2,667 2,657 2,100,000 Callable 1.85% due August 19, 2021 2,028 2,055 1,400,000 Callable 2.60% due August 19, 2026 1,348 1,328 Anheuser-Busch InBev Finance Inc. 4,000,000 1.90% due February 01, 2019 4,018 4,010 1,000,000 Callable 2.65% due February 01, 2021 1,021 1,014 2,500,000 Callable 3.30% due February 01, 2023 2,565 2,578 2,445,000 Callable 3.65% due February 01, 2026 2,525 2,523 Anheuser-Busch InBev Worldwide Inc. 500,000 2.20% due August 01, 2018 500 503 1,915,000 5.375% due January 15, 2020 2,315 2,075 Apple Inc. 750,000 Callable 2.25% due February 23, 2021 760 755 2,000,000 3.20% due May 13, 2025 2,048 2,045 2,000,000 Callable 2.45% due August 04, 2026 1,889 1,915 AT&T Inc. 1,100,000 Floating Rate due June 30, 2020 1,107 1,115 3,250,000 Callable 2.45% due June 30, 2020 3,293 3,269 1,000,000 3.00% due February 15, 2022 1,027 1,006 920,000 Callable 3.60% due February 17, 2023 957 943 1,140,000 Callable 3.40% due May 15, 2025 1,109 1,123 1,000,000 Callable 4.125% due February 17, 2026 1,077 1,027 AvalonBay Communities Inc. 1,000,000 Callable 3.625% due October 01, 2020 1,041 1,037 1,100,000 Callable 2.95% due September 15, 2022 1,105 1,114 890,000 Callable 2.85% due March 15, 2023 807 886 Bank of America Corporation 1,000,000 2.60% due January 15, 2019 1,003 1,010 2,205,000 2.25% due April 21, 2020 2,176 2,207 5,000,000 2.625% due October 19, 2020 4,953 5,054 1,015,000 5.00% due May 13, 2021 1,056 1,108 2,285,000 3.30% due January 11, 2023 2,243 2,332 2,500,000 Callable 3.124% due January 20, 2023 2,493 2,530 3,480,000 4.10% due July 24, 2023 3,556 3,689 3,650,000 4.00% due April 01, 2024 3,903 3,828 1,250,000 3.875% due August 01, 2025 1,259 1,294 The Bank of New York Mellon Corporation 3,175,000 Callable 2.10% due January 15, 2019 3,174 3,190 1,250,000 4.60% due January 15, 2020 1,333 1,329 4,900,000 Callable 2.60% due February 07, 2022 4,892 4,937 BB&T Corporation 2,000,000 Callable 2.25% due February 01, 2019 2,025 2,012 3,840,000 Callable 2.45% due January 15, 2020 3,890 3,884 1,300,000 Callable 2.85% due April 01, 2021 1,317 1,329 5,480,000 Callable 3.625% due September 16, 2025 5,560 5,706 Berkshire Hathaway Finance Corporation 2,030,000 1.30% due August 15, 2019 2,028 2,016 Berkshire Hathaway Inc. 1,150,000 2.10% due August 14, 2019 1,157 1,159 1,750,000 Callable 2.75% due March 15, 2023 1,790 1,775 7

TD U.S. Corporate Bond Fund No. of Shares or Units/ Par Value Description Cost Fair Value BMW US Capital LLC 1,250,000 Callable 2.00% due April 11, 2021 $ 1,249 $ 1,239 Boston Properties Limited Partnership 1,500,000 Callable 3.65% due February 01, 2026 1,566 1,521 1,000,000 Callable 2.75% due October 01, 2026 996 946 Burlington Northern Santa Fe LLC 600,000 4.70% due October 01, 2019 698 638 2,450,000 Callable 3.25% due June 15, 2027 2,511 2,506 Chevron Corporation 2,260,000 1.561% due May 16, 2019 2,248 2,254 1,650,000 Callable 2.355% due December 05, 2022 1,618 1,644 Cisco Systems Inc. 1,650,000 2.125% due March 01, 2019 1,672 1,664 1,250,000 Callable 1.85% due September 20, 2021 1,232 1,235 Citigroup Inc. 730,000 2.50% due July 29, 2019 730 737 4,275,000 2.40% due February 18, 2020 4,257 4,301 2,000,000 2.65% due October 26, 2020 1,990 2,021 4,310,000 2.35% due August 02, 2021 4,310 4,275 4,200,000 Callable 2.90% due December 08, 2021 4,197 4,247 2,925,000 3.75% due June 16, 2024 2,940 3,036 6,785,000 3.40% due May 01, 2026 6,783 6,725 City of Westminster 150,000 4.664% due December 01, 2020 150 161 The Coca-Cola Company 810,000 1.55% due September 01, 2021 809 794 750,000 2.50% due April 01, 2023 768 752 Comcast Corporation 1,050,000 5.15% due March 01, 2020 1,221 1,138 2,100,000 Callable 3.15% due March 01, 2026 2,094 2,113 2,250,000 Callable 2.35% due January 15, 2027 2,080 2,114 Commonwealth Bank of Australia 2,000,000 2.25% due March 13, 2019 2,014 2,012 4,800,000 2.30% due March 12, 2020 4,794 4,819 Commonwealth of Massachusetts 30,000 4.20% due December 01, 2021 34 32 ConocoPhillips 274,000 5.75% due February 01, 2019 332 290 2,040,000 Callable 3.35% due November 15, 2024 2,096 2,083 Consolidated Edison Company of New York Inc. 300,000 7.125% due December 01, 2018 365 322 1,050,000 Callable 3.30% due December 01, 2024 1,090 1,071 CVS Health Corporation 4,300,000 Callable 2.25% due December 05, 2018 4,393 4,328 2,010,000 Callable 3.50% due July 20, 2022 2,017 2,087 1,750,000 Callable 3.375% due August 12, 2024 1,771 1,782 Daimler Finance North America LLC 1,850,000 2.25% due March 02, 2020 1,865 1,853 Duke Energy Carolinas LLC 1,517,000 7.00% due November 15, 2018 1,774 1,625 2,000,000 4.30% due June 15, 2020 2,189 2,134 Enbridge Energy Partners L.P. 1,500,000 Callable 5.875% due October 15, 2025 1,508 1,714 Enterprise Products Operating LLC 500,000 6.50% due January 31, 2019 621 534 800,000 Callable 2.55% due October 15, 2019 804 807 1,250,000 Callable 3.35% due March 15, 2023 1,206 1,285 2,500,000 Callable 3.75% due February 15, 2025 2,538 2,579 ERP Operating Limited Partnership 753,000 Callable 4.625% due December 15, 2021 850 814 900,000 Callable 3.00% due April 15, 2023 890 905 No. of Shares or Units/ Par Value Description Cost Fair Value Exxon Mobil Corporation 2,000,000 Callable 2.222% due March 01, 2021 $ 2,004 $ 2,014 Fannie Mae Pool 2,254,484 3.50% due December 01, 2025 2,505 2,353 54,944 5.00% due December 01, 2034 81 60 44,735 6.00% due June 01, 2037 83 51 203,323 6.50% due November 01, 2037 375 230 123,178 4.50% due July 01, 2039 155 134 Fannie Mae-Aces 351,488 2.323% due November 25, 2018 361 354 491,097 3.763% due June 25, 2021 536 516 1,850,000 2.614% due October 25, 2021 1,923 1,889 750,000 2.389% due January 25, 2023 754 753 1,029,000 2.62% due April 25, 2023 1,036 1,043 1,000,000 3.021% due August 25, 2024 1,051 1,027 3,950,000 2.72296% due October 25, 2024 3,985 3,970 600,000 Callable 2.939% due January 25, 2026 629 609 3,100,000 3.092% due April 25, 2027 3,301 3,156 Federal National Mortgage Association 2,960,000 1.83% due October 09, 2019 2,814 2,840 Ford Motor Credit Company LLC 2,000,000 2.551% due October 05, 2018 2,015 2,014 675,000 2.021% due May 03, 2019 676 674 2,000,000 2.681% due January 09, 2020 2,013 2,015 725,000 5.875% due August 02, 2021 839 809 2,475,000 4.375% due August 06, 2023 2,519 2,607 General Electric Company 5,730,000 2.10% due December 11, 2019 5,774 5,777 573,000 Callable 2.20% due January 09, 2020 576 578 208,000 3.15% due September 07, 2022 213 216 General Motors Financial Company Inc. 1,975,000 2.35% due October 04, 2019 1,978 1,976 Ginnie Mae I Pool 22,978 6.50% due December 15, 2028 33 27 10,031 6.50% due October 15, 2032 15 12 375,319 6.00% due June 15, 2036 483 439 278,215 3.50% due December 15, 2040 303 289 Ginnie Mae II Pool 237,258 3.50% due January 20, 2026 293 247 189,833 3.00% due December 15, 2026 215 196 The Goldman Sachs Group Inc. 2,900,000 2.625% due January 31, 2019 2,928 2,930 Johnson & Johnson 1,500,000 Callable 2.45% due March 01, 2026 1,514 1,464 JPMorgan Chase & Co. 6,800,000 2.20% due October 22, 2019 6,877 6,824 1,190,000 4.95% due March 25, 2020 1,327 1,277 2,560,000 Callable 2.55% due March 01, 2021 2,593 2,574 4,780,000 Callable 2.40% due June 07, 2021 4,826 4,774 3,890,000 3.25% due September 23, 2022 3,950 3,989 2,300,000 Callable 3.90% due July 15, 2025 2,360 2,401 630,000 Callable 3.30% due April 01, 2026 638 626 3,000,000 Callable 2.95% due October 01, 2026 2,941 2,899 Kinder Morgan Energy Partners L.P. 1,365,000 2.65% due February 01, 2019 1,377 1,375 Lockheed Martin Corporation 2,650,000 Callable 2.50% due November 23, 2020 2,685 2,688 1,350,000 3.35% due September 15, 2021 1,409 1,406 2,250,000 Callable 3.55% due January 15, 2026 2,369 2,336 Magellan Midstream Partners L.P. 300,000 6.55% due July 15, 2019 329 326 1,300,000 Callable 5.00% due March 01, 2026 1,430 1,436 8

TD U.S. Corporate Bond Fund No. of Shares or Units/ Par Value Description Cost Fair Value Metropolitan Life Global Funding I 1,010,000 1.875% due June 22, 2018 $ 1,005 $ 1,012 1,600,000 1.95% due December 03, 2018 1,599 1,602 2,740,000 2.30% due April 10, 2019 2,746 2,764 1,000,000 2.00% due April 14, 2020 996 998 950,000 3.875% due April 11, 2022 1,002 1,006 3,625,000 3.00% due January 10, 2023 3,536 3,689 Microsoft Corporation 4,500,000 Callable 2.00% due August 08, 2023 4,418 4,389 3,250,000 Callable 3.30% due February 06, 2027 3,332 3,352 MidAmerican Energy Company 625,000 Callable 2.40% due March 15, 2019 645 632 2,350,000 Callable 3.50% due October 15, 2024 2,578 2,453 New York City Transitional Finance Authority 200,000 4.38% due February 01, 2020 229 213 1,000,000 2.90% due November 01, 2021 998 1,031 Nissan Motor Acceptance Corporation 2,755,000 1.55% due September 13, 2019 2,757 2,725 1,300,000 2.25% due January 13, 2020 1,301 1,304 Norfolk Southern Corporation 1,255,000 5.90% due June 15, 2019 1,489 1,351 800,000 Callable 3.85% due January 15, 2024 812 847 1,000,000 Callable 2.90% due June 15, 2026 996 986 Occidental Petroleum Corporation 2,390,000 Callable 3.50% due June 15, 2025 2,430 2,443 Oracle Corporation 68,000 2.25% due October 08, 2019 70 69 PacifiCorp. 925,000 5.65% due July 15, 2018 1,118 962 2,230,000 5.50% due January 15, 2019 2,523 2,353 2,280,000 Callable 2.95% due February 01, 2022 2,335 2,333 1,750,000 Callable 3.60% due April 01, 2024 1,921 1,836 PepsiCo Inc. 1,579,000 Callable 3.10% due July 17, 2022 1,665 1,637 Phillips 66 1,900,000 4.30% due April 01, 2022 2,038 2,038 PNC Bank National Association 3,150,000 Callable 2.25% due July 02, 2019 3,173 3,174 5,295,000 Callable 2.00% due May 19, 2020 5,304 5,289 1,470,000 Callable 2.15% due April 29, 2021 1,469 1,462 2,800,000 Callable 3.25% due June 01, 2025 2,801 2,845 PNC Funding Corp. 875,000 6.70% due June 10, 2019 1,095 952 700,000 4.375% due August 11, 2020 796 745 3,590,000 Callable 3.30% due March 08, 2022 3,639 3,724 Raytheon Company 825,000 4.40% due February 15, 2020 915 878 2,895,000 3.125% due October 15, 2020 2,952 3,001 Simon Property Group L.P. 2,540,000 Callable 2.20% due February 01, 2019 2,541 2,557 State of Oregon 500,000 4.361% due August 01, 2019 503 528 State Street Corporation 1,670,000 1.95% due May 19, 2021 1,669 1,650 Time Warner Inc. 4,030,000 2.10% due June 01, 2019 4,040 4,034 3,129,000 4.875% due March 15, 2020 3,356 3,347 1,000,000 Callable 3.60% due July 15, 2025 994 999 U.S. Bancorp 1,790,000 Callable 4.125% due May 24, 2021 1,976 1,915 2,000,000 Callable 3.10% due April 27, 2026 1,958 1,979 No. of Shares or Units/ Par Value Description Cost Fair Value U.S. Bank NA 1,000,000 Callable 2.125% due October 28, 2019 $ 1,002 $ 1,008 2,500,000 Callable 2.80% due January 27, 2025 2,531 2,479 2,300,000 Callable 3.15% due April 27, 2027 2,299 2,307 Union Pacific Corporation 675,000 5.70% due August 15, 2018 815 705 400,000 Callable 4.00% due February 01, 2021 448 424 United States Treasury Inflation Indexed Bonds 2,000,000 0.125% due April 15, 2021 2,088 2,061 United States Treasury Note 3,250,000 2.75% due February 15, 2024 3,391 3,382 United States Treasury Note 8,440,000 1.00% due November 30, 2018 8,413 8,400 3,725,000 1.25% due December 15, 2018 3,726 3,720 6,050,000 1.125% due January 15, 2019 6,037 6,029 6,965,000 1.00% due June 30, 2019 6,900 6,914 1,400,000 1.25% due February 29, 2020 1,392 1,391 1,105,000 1.375% due August 31, 2020 1,105 1,097 4,030,000 2.625% due November 15, 2020 4,223 4,160 11,910,000 1.25% due March 31, 2021 11,860 11,714 4,030,000 1.375% due May 31, 2021 4,053 3,975 4,500,000 2.00% due November 15, 2021 4,531 4,539 5,230,000 1.50% due January 31, 2022 5,164 5,152 6,880,000 1.625% due November 15, 2022 6,727 6,767 11,855,000 1.375% due September 30, 2023 11,563 11,378 8,130,000 1.50% due August 15, 2026 7,686 7,606 1,700,000 2.00% due November 15, 2026 1,648 1,658 4,000,000 2.25% due February 15, 2027 3,958 3,982 4,085,000 2.375% due May 15, 2027 4,148 4,111 United States Treasury Strip Coupon 6,310,000 1.55% due May 15, 2020 5,816 6,038 2,100,000 1.87% due November 15, 2021 1,908 1,937 Ventas Realty L.P./Ventas Capital Corp. 1,550,000 Callable 2.00% due February 15, 2018 1,564 1,552 1,250,000 Callable 3.25% due August 15, 2022 1,252 1,267 Verizon Communications Inc. 2,580,000 2.99% Floating Rate due September 14, 2018 2,674 2,627 7,325,000 2.946% due March 15, 2022 7,332 7,384 3,265,000 Callable 2.45% due November 01, 2022 3,168 3,204 1,000,000 5.15% due September 15, 2023 1,092 1,112 1,530,000 Callable 3.50% due November 01, 2024 1,568 1,547 1,000,000 2.625% due August 15, 2026 980 922 Volkswagen Group of America Finance LLC 1,250,000 1.65% due May 22, 2018 1,248 1,249 1,250,000 2.45% due November 20, 2019 1,251 1,258 Wells Fargo & Company 2,660,000 2.60% due July 22, 2020 2,673 2,699 7,100,000 2.50% due March 04, 2021 7,124 7,128 1,750,000 Callable 3.069% due January 24, 2023 1,755 1,776 4,750,000 3.45% due February 13, 2023 4,769 4,867 5,030,000 3.30% due September 09, 2024 5,044 5,107 1,000,000 3.00% due October 23, 2026 949 975 495,845 494,466 Total Global Bonds 512,839 511,551 TOTAL INVESTMENT PORTFOLIO 97.1% $ 555,539 $ 554,386 OTHER NET ASSETS (LIABILITIES) 2.9% 16,719 TOTAL NET ASSETS 100.0% $ 571,105 9

ntd U.S. Corporate Bond Fund (expressed in United States dollars) Fund-Specific Notes to the Interim Financial Report (Unaudited) (A) The Fund (I) The Fund start date was May 4, 2010. (II) TDAM is the manager, the portfolio adviser and trustee of the Fund and TDAM USA Inc. is the sub-adviser. (III) At, TD and funds managed by TDAM held 80.3% (December 31, 2016: 79.3%) of the net assets of the Fund. (IV) The reporting and functional currency of the Fund is the United States dollar. (V) The investment objective of the Fund is to seek to earn a high rate of interest income through investments primarily in investment-grade debt securities issued by U.S. corporations and trusts, including mortgage-backed or asset-backed securities, as well as by U.S. governments and agencies. In seeking to achieve this objective, the Fund uses a bottom-up strategy emphasizing analysis of individual corporations in the context of a global macroeconomic environment. The Fund also employs yield curve strategies with a view to adding value and enhancing long-term performance. The selection process is based on methodical risk/return analysis with the objective of maximizing risk-adjusted returns for the Fund. (VI) Investor, Premium, Advisor, F-, Premium F- and O-Series were launched on March 1, 2016. D-Series was launched on April 26, 2016. (B) Management Fees and Administration Fees (Note 6) for the six-month periods ended and 2016 (I) MANAGEMENT FEES (%) (C) Brokerage Commissions and Soft Dollars (in 000s) (Notes 3 and 6) for the six-month periods ended and 2016 Not significant or applicable to the Fund. (D) Tax Loss Carry Forwards (in 000s) (Note 7) as at December 31, 2016 None for the Fund. (E) Securities Lent (Note 3) (I) SECURITIES LENDING INCOME A reconciliation of the gross amount generated from the securities lending transactions to the security lending income to the Fund for the periods ended and 2016 is as follows: Percentage of Amount (in 000s) Total Amount (%) 2017 2016 2017 2016 Gross Securities Lending Income $ 1 $ 11 100.0 100.0 Agent fees The Bank of New York Mellon Corp. 0 (2) 0.0 (18.2) Securities Lending Income to the Fund before Tax Reclaims (Withholding Taxes) 1 9 100.0 81.8 Tax Reclaims (Withholding Taxes) 0 (1) 0.0 (9.1) Net Securities Lending Income $ 1 $ 8 100.0 72.7 Actual Annual Rate (exclusive of GST and HST) Series Maximum* 2017 2016 Investor Series 1.10 1.13 1.20 Premium Series 1.00 1.00 1.00 Advisor Series 1.10 1.14 1.20 F-Series 0.60 0.60 0.60 Premium F-Series 0.50 0.50 0.50 D-Series 0.85 0.92 1.00 Private Series 0.00 0.00 0.00 O-Series 0.00 0.00 0.00 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 there is no duplication of management fees. * Effective March 28, 2017, TDAM reduced the maximum management fees of certain series. Refer to the Significant Events section for further details. The amount payable (in 000s) to TDAM as at for management fees is $2 (December 31, 2016: $0) which is included in Accrued Liabilities on the Statements of Financial Position. (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 and December 31, 2016. June 30, December 31, 2017 2016 Fair Value of Securities Lent $ 1,420 $ 11,657 Fair Value of Collateral Held 1,558 12,264 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. (II) ADMINISTRATION FEES (%) Annual Rate (exclusive of GST and HST) Series 2017 2016 Investor Series 0.15 0.15 Advisor Series 0.15 0.15 D-Series 0.15 0.15 The amount payable (in 000s) to TDAM as at for administration fees is $0 (December 31, 2016: $0) which is included in Accrued Liabilities on the Statements of Financial Position. 10

TD U.S. Corporate Bond Fund Fund-Specific Notes to the Interim Financial Report (F) Financial Risk Management (Notes 3, 4 and 8) as at and December 31, 2016 (I) INTEREST RATE RISK The table below summarizes the Fund s exposure to interest rate risk as at and December 31, 2016 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 the bond portfolio. In practice, the actual trading results may differ from these approx imate sensitivity analysis amounts and the differences could be material. Total Exposure (in 000s) Term to Maturity June 30, December 31, Bonds 2017 2016 Less than 1 year $ 4,878 $ 3,216 1-5 years 332,083 328,179 5-10 years 216,184 177,239 > 10 years 1,241 4,483 Total $ 554,386 $ 513,117 Impact on Net Assets (000s) $ 22,031 $ 19,426 Impact on Net Assets (%) 3.9 3.7 (II) CURRENCY RISK Not significant or applicable to the Fund. (III) OTHER PRICE RISK Not significant or applicable to the Fund. (IV) CREDIT RISK The table below summarizes the debt instruments by credit ratings as at and December 31, 2016. Percentage of Percentage of Total Bonds (%) Total Net Assets (%) June 30, December 31, June 30, December 31, Credit Rating 2017 2016 2017 2016 AAA 18.5 13.6 18.0 13.1 AA 14.3 19.5 13.9 18.9 A 36.9 35.6 35.8 34.3 BBB 29.0 29.9 28.2 28.9 No Rating 1.3 1.4 1.2 1.3 Total 100.0 100.0 97.1 96.5 Credit ratings are obtained from Standard & Poor s, Moody s or DBRS rating agencies. (V) FINANCIAL INSTRUMENTS BY THE LEVEL IN THE FAIR VALUE HIERARCHY (in 000s) The table below illustrates the classification of the Fund s financial instruments within the fair value hierarchy as at and December 31, 2016. (VI) RECONCILIATION OF LEVEL 3 FAIR VALUE MEASUREMENTS (in 000s) Not significant or applicable to the Fund. (VII) CONTRACTUAL MATURITIES ANALYSIS FOR FINANCIAL LIABILITIES As at and December 31, 2016, the Fund s net assets are due on demand. All other financial liabilities of the Fund are due in less than three months. (G) Investment Portfolio Concentration (%) (Note 8) As at and December 31, 2016, the Fund s investment portfolio concentration can be summarized as follows: June 30, December 31, 2017 2016 Canadian Bonds Provincial Bonds & Guarantees 0.2 0.6 Corporate Bonds 7.3 8.5 Global Bonds Australia 0.3 0.5 Ireland 1.2 1.3 Netherlands 0.7 1.0 Norway 0.2 0.3 United Kingdom 0.6 0.6 United States 86.6 83.7 Other Net Assets (Liabilities) 2.9 3.5 100.0 100.0 (H) Interest in Unconsolidated Structured Entities (in 000s) (Note 3) Not significant or applicable to the Fund. (I) Offsetting of Financial Assets and Liabilities (in 000s) (Note 3) as at and December 31, 2016 Not significant or applicable to the Fund. (J) Significant Events (I) On February 4, 2016, the TD Private U.S. Corporate Bond Fund was renamed TD U.S. Corporate Bond Fund and integrated into the TD Mutual Funds family. Issued and outstanding units of the TD Private U.S. Corporate Bond Fund were redesignated as Private Series units. (II) The following changes were made: The maximum annual management fees of Investor Series and Advisor Series were lowered from 1.25 percent to 1.10 percent effective March 28, 2017. The maximum annual management fee of F-Series was lowered from 0.75 percent to 0.60 percent effective March 28, 2017. The maximum annual management fee of D-Series was lowered from 1.00 percent to 0.85 percent effective March 28, 2017. The Premium Series and Premium F-Series were closed to all purchases effective end of business on November 21, 2016 and were terminated on March 28, 2017. Level 1 Level 2 Level 3 Total Bonds $ 0 $ 554,386 $ 0 $ 554,386 December 31, 2016 Bonds $ 0 $ 513,117 $ 0 $ 513,117 As at the end of the periods, transfers between Level 1 and Level 2 were nil. 11

nnotes to the Interim Financial Report (Unaudited) 1. The Fund The TD Mutual Fund Trusts, TD Managed Assets Program Portfolios and TD Managed ETF Portfolios (collectively, the Funds and individually, the Fund ) are open-end mutual funds established under the laws of Ontario and governed by the Declaration of Trust, as amended from time to time. The TD Managed Assets Program Portfolios invest primarily in units of other mutual funds and TD Managed ETF Portfolios invest primarily in units of other exchange-traded funds. 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. ( TDW ) 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 and December 31, 2016. 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 periods ended and 2016. Where a Fund or series of a Fund was established during either period, the information for the Fund or series is provided from the inception date. A comparative statement has only been presented for any period for which the Fund was in existence as at the reporting date. The Fund s start date as indicated in the Interim Fund-Specific Notes to the Financial Report is the date that the Fund commenced operations or in the case of a new series, the date the series was first offered and not its inception date. This financial report was authorized for issue by TDAM on August 15, 2017. 2. Basis of Presentation This interim financial report has been prepared in compliance with International Financial Reporting Standards ( IFRS ) as published by the International Accounting Standards Board ( IASB ), applicable to the preparation of interim financial reports, including International Accounting Standards ( IAS ) 34, Interim Financial Reporting. This interim financial report has 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 The Fund recognizes financial instruments at fair value upon initial recognition, plus transaction costs in the case of financial instruments not measured at FVTPL. Regular way purchases and sales of financial instruments are recognized at their trade date. The Fund s non-derivative investments, which are designated at FVTPL, and derivative assets and liabilities, which are classified as held for trading ( HFT ), are measured at FVTPL. All other financial assets and liabilities are measured at amortized cost. Under this method, financial assets and liabilities reflect the amount required to be received or paid, discounted, when appropriate, at the contract s effective interest rate. The Fund has determined that it meets the definition of an investment entity and as a result, it measures 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 manage - ment 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 significant judgment that the Fund has made in determining that it meets this definition is that fair value is the primary measurement attribute used to measure and evaluate the performance of substantially all of its investments. The Fund s investments may also include associates and joint ventures which are designated at FVTPL. The Fund s 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 Fund s only contractual obligation. Consequently, the Fund s outstanding redeemable units are classified as financial liabilities in accordance with the requirements of IAS 32, Financial Instruments: Presentation ( IAS 32 ). The Fund s obligations for Net Assets Attributable to Holders of Redeemable Units are presented at the redemption amount. The Fund s accounting policies for measuring the fair value of its investments and derivatives are substantially similar to those used in measuring its 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 Fund s NAV per series unit and net assets per series unit. 12

nnotes to the Interim Financial Report (Unaudited) 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 marketable securities) are based on quoted market prices at the close of trading on the reporting date. The Fund uses 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 Fund s policy is to recognize transfers into and out of the fair value hierarchy levels at the end of reporting periods. The fair value of financial assets and liabilities that are not traded in an active market, including over-the-counter derivatives, is determined using valuation techniques. The Fund uses a variety of methods and makes 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 make the maximum use of observable inputs. The valuation methodology for specific types of investments held by the Fund 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 held in the Fund, if any, 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 identification of a uniqueness premium 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. (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 reported in Interest for Distribution Purposes on the Statements of Comprehensive Income. (d) The Fund 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 on the Statements of Comprehensive Income as part of Net Gain (Loss) on Derivatives. (e) The Fund may enter into a forward contract to obtain exposure to a specific type of investment without actually investing directly in such investment. These contracts are valued based on the difference between the contract rate and the current market rate for the underlying investment, at the measurement date. The unrealized gain or loss and the net realized gain or loss from closing out contracts are reflected on the Statements of Comprehensive Income as part of Net Gain (Loss) on Derivatives. (f) The Fund may purchase standardized, exchange-traded futures contracts. Any outstanding futures contracts as at are listed in the Schedule of Investment Portfolio. 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 on the Statements of Comprehensive Income as Derivatives Income (Loss). Any amounts receivable (payable) from settlement of futures contracts are reflected on the Statements of Financial Position as Futures Margin Receivable (Payable). Short-term debt instruments as indicated in the Schedule of Investment Portfolio have been segregated and are held as margin against the futures contracts purchased by the Fund. (g) 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 on derivatives. 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 on the Statements of Comprehensive Income as part of Net Gain (Loss) on Derivatives. The cost of a security purchased will be reduced by the premium received on options when a written put option is exercised. (h) Investments in underlying funds (mutual funds and TD Exchange- Traded Funds) are generally valued at the NAV per series unit of the underlying funds as reported by the underlying funds managers. (i) The exchange-traded funds (ETFs) are valued based on quoted market prices at the close of trading on the reporting date. 13

nnotes to the Interim Financial Report (Unaudited) Fair Value Hierarchy The Fund classifies its investment 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 Level 2 Level 3 Quoted (unadjusted) prices in active markets for identical assets or liabilities; 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 Inputs that are not based on observable market data (that is, unobservable inputs). All fair value measurements are recurring. The carrying values of Cash, Subscriptions Receivable, Interest Receivable, Dividends Receivable, Receivable for Investments Sold, Payable for Investments Purchased, Redemptions Payable, Distributions Payable, Accrued Liabilities and the Fund s 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 derivative 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 its fair value requires the use of significant unobservable inputs, in which case it is classified as Level 3. 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 performance of the fair value measurements included in the financial statements of the Fund, 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 Fund. 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 arrangements. TDAM has determined that all of the underlying funds and ETFs in which the Fund invests are unconsolidated structured entities. In making this determination, TDAM evaluated the fact that decision making about underlying funds and ETF s activities are generally not governed by voting or similar rights held by the Fund and other investors in any underlying funds and ETFs. The Fund may invest in underlying funds and ETFs whose investment objectives range from achieving short- to long-term income and capital growth potential. The Fund s interests in these securities as at and December 31, 2016 are included at their fair value on the Statements of Financial Position, which represent the Fund s exposure in these underlying funds and ETFs. The Fund does not provide and has not committed to provide any additional significant financial or other support to the underlying funds and ETFs. The change in fair value of each of the underlying funds and ETFs during the reporting periods is included in Net Change in Unrealized Appreciation/Depreciation on the Statements of Comprehensive Income in Net Gain (Loss) on Investments. Additional information on the Fund s interest in underlying funds and ETFs, where applicable, is provided in the Fund-Specific Notes to the Financial Statements. TD MUTUAL FUND TRUSTS The TD Mutual Fund Trusts may also invest in mortgage-related and 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 Fund may also 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 and December 31, 2016, the fair value of mortgagerelated and other asset-backed securities of the Fund, where applicable, is disclosed as part of the Investments on the Statements of Financial Position. This amount represents the maximum exposure to losses at that date. The change in fair value of mortgage-related and other asset-backed securities during the reporting periods are included in the Net Change in Unrealized Appreciation/Depreciation on Statements of Comprehensive Income in Net Gain (Loss) on Investments. The classification of the Fund s financial instruments within the fair value hierarchy as at and December 31, 2016, and any transfers between levels at end of the period 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 to the Financial Statements, where applicable. 14