TD Canadian Equity Fund

TD Canadian Equity Fund 532052 (03/18) TD Mutual Funds for the period ended

nmanagement s Responsibility for Financial Reporting The accompanying financial statements have been prepared by TD Asset Management Inc. ( TDAM ) as manager of the TD Mutual Fund Trusts, TD Managed Assets Program Portfolios and TD Managed ETF Portfolios (collectively the Funds and individually the Fund ) and approved by TDAM s board of directors. The manager is responsible for the integrity, objectivity and reliability of the data presented. This responsibility includes selecting appropriate accounting principles and making judgments and estimates consistent with International Financial Reporting Standards ( IFRS ). The manager is also responsible for the development of internal controls over the financial reporting process, which are designed to provide reasonable assurance that relevant and reliable financial informa - tion is produced, and the safeguarding of all assets of the Funds. The board of directors of TDAM is responsible for reviewing and approving the financial statements and overseeing management s performance of its financial reporting responsibilities. PricewaterhouseCoopers LLP is the external auditor of the Funds. The auditor has audited the financial statements in accordance with Canadian generally accepted auditing standards to enable them to express their opinion on the financial statements. The auditor s report is included on the follow ing page of this annual report. On behalf of TDAM, manager of the Funds. Bruce Cooper David Lambie Director and Director and Chief Executive Officer Chief Financial Officer March 16, 2018 March 16, 2018 1

nindependent Auditor s Report To the Unitholders and Trustee of: 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 Balanced Income Fund TD Diversified Monthly Income Fund 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 Core Canadian Value Fund TD Canadian Value Fund TD Canadian Small-Cap Equity Fund TD U.S. Risk Managed Equity Fund TD U.S. Low Volatility Fund TD U.S. Low Volatility Currency Neutral 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 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 Shareholder Yield Currency Neutral Fund Epoch Global Equity Fund Epoch International Equity Fund Epoch European Equity Fund TD Resource Fund TD Precious Metals Fund TD 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 Advantage Growth Portfolio TD Advantage Aggressive 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 (collectively, the Funds ) 2

nindependent Auditor s Report We have audited the accompanying financial statements of each of the Funds, which comprise the statements of financial position, comprehensive income, changes in net assets attributable to holders of redeemable units and cash flows as at and for the periods indicated in note 1, and the related notes, which comprise a summary of significant accounting policies and other explanatory information. Management s responsibility for the financial statements Management is responsible for the preparation and fair presentation of the financial statements of each of the Funds in accordance with Inter national Financial Reporting Standards, and for such internal control as manage ment determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor s responsibility Our responsibility is to express an opinion on the financial statements of each of the Funds based on our audits. We conducted our audits in accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity s preparation and fair presentation of the financial statements in order to design audit pro - cedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity s internal control. An audit also includes evaluating the appropriateness of account - ing policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained in each of our audits is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements of each of the Funds present fairly, in all material respects, the financial position, financial performance and cash flows of each of the Funds as at and for the periods indicated in note 1 in accordance with Inter national Financial Reporting Standards. Chartered Professional Accountants, Licensed Public Accountants Toronto, Ontario March 16, 2018 3

ntd Canadian Equity Fund Statements of Financial Position (in 000s except per unit amounts) as at and 2016 2017 2016 Assets Current Assets Investments $ 4,980,870 $ 4,864,688 Cash 34,695 40,244 Dividends Receivable 12,596 15,756 Subscriptions Receivable 937 4,796 Derivative Assets Unrealized Appreciation on Open Foreign Exchange Forward Contracts 5,223 1,889 5,034,321 4,927,373 Liabilities Current Liabilities Accrued Liabilities 117 136 Redemptions Payable 17,851 4,297 Derivative Liabilities Unrealized Depreciation on Open Foreign Exchange Forward Contracts 192 1,496 18,160 5,929 Net Assets Attributable to Holders of Redeemable Units $ 5,016,161 $ 4,921,444 Net Assets Attributable to Holders of Redeemable Units Per Series (Note 5) Investor Series $ 1,165,726 $ 1,274,765 Institutional Series $ 21,809 $ 23,307 Premium Series $ 33,603 $ 35,252 Advisor Series $ 66,045 $ 82,556 F-Series $ 29,715 $ 17,557 Premium F-Series N/A $ 16,514 D-Series $ 10,201 $ 5,279 Private Series $ 53,283 $ 50,517 O-Series $ 3,635,779 $ 3,415,697 $ 5,016,161 $ 4,921,444 Net Assets Attributable to Holders of Redeemable Units Per Series Unit Investor Series $ 38.03 $ 36.01 Institutional Series $ 19.98 $ 18.92 Premium Series $ 12.40 $ 11.74 Advisor Series $ 15.87 $ 15.04 F-Series $ 16.90 $ 15.97 Premium F-Series N/A $ 12.26 D-Series $ 11.92 $ 11.25 Private Series $ 13.04 $ 12.33 O-Series $ 16.45 $ 15.56 The accompanying notes are an integral part of the financial statements. 4

ntd Canadian Equity Fund Statements of Comprehensive Income (in 000s except per unit amounts) for the periods ended and 2016 2017 2016 Income Foreign Exchange Gain (Loss) on Cash $ (2,117) $ 820 Securities Lending Income 162 106 Net Gain (Loss) on Investments and Derivatives Net Gain (Loss) on Investments Interest for Distribution Purposes 690 412 Dividend Income 133,651 117,903 Net Realized Gain (Loss) 120,728 112,319 Net Change in Unrealized Appreciation/ Depreciation 136,521 556,464 Net Gain (Loss) on Investments 391,590 787,098 Net Gain (Loss) on Derivatives Net Realized Gain (Loss) 20,360 (4,683) Net Change in Unrealized Appreciation/ Depreciation 4,638 13,447 Net Gain (Loss) on Derivatives 24,998 8,764 Total Net Gain (Loss) on Investments and Derivatives 416,588 795,862 Total Income (Net) 414,633 796,788 Expenses (Note 6) Management Fees 27,027 26,317 Securityholder Reporting Costs 7 1 Custodial Fees 0 3 Administration Fees 1,735 1,690 Audit Fees 0 2 Independent Review Committee Fees 2 2 Transaction Costs 1,422 1,257 Interest Charges 1 3 Total Expenses before Waivers 30,194 29,275 Less: Waived Expenses (8) (4) Total Expenses (Net) 30,186 29,271 Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units before Tax 384,447 767,517 Tax Reclaims (Withholding Taxes) (1,244) (1,414) Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units $ 383,203 $ 766,103 2017 2016 Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units Per Series* Investor Series $ 71,410 $ 204,035 Institutional Series $ 1,680 $ 2,856 Premium Series $ 2,099 $ 5,336 Advisor Series $ 4,169 $ 13,161 F-Series $ 1,986 $ 2,528 Premium F-Series $ 262 $ 2,651 D-Series $ 651 $ 673 Private Series $ 4,347 $ 11,329 O-Series $ 296,599 $ 523,534 $ 383,203 $ 766,103 Weighted Average Units Outstanding for the Period Per Series* Investor Series 32,867 35,594 Institutional Series 1,136 945 Premium Series 2,911 2,770 Advisor Series 4,856 5,564 F-Series 1,638 922 Premium F-Series 665 1,223 D-Series 735 335 Private Series 4,046 3,833 O-Series 221,146 188,302 Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units Per Series Unit* Investor Series $ 2.17 $ 5.73 Institutional Series $ 1.48 $ 3.02 Premium Series $ 0.72 $ 1.93 Advisor Series $ 0.86 $ 2.37 F-Series $ 1.21 $ 2.74 Premium F-Series $ 0.39 $ 2.17 D-Series $ 0.88 $ 2.01 Private Series $ 1.07 $ 2.96 O-Series $ 1.34 $ 2.78 * 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 Financial Statements for further details. The accompanying notes are an integral part of the financial statements. 5

ntd Canadian Equity Fund Statements of Changes in Net Assets Attributable to Holders of Redeemable Units (in 000s) for the periods ended and 2016 Investor Series Institutional Series Premium Series 2017 2016 2017 2016 2017 2016 Net Assets Attributable to Holders of Redeemable Units at Beginning of the Period $ 1,274,765 $ 1,000,338 $ 23,307 $ 3,766 $ 35,252 $ 23,375 Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units 71,410 204,035 1,680 2,856 2,099 5,336 Distributions to Holders of Redeemable Units From Net Investment Income (4,432) (5,495) (437) (327) (178) (180) From Net Realized Gains on Investments (3,491) 0 (64) 0 (101) 0 (7,923) (5,495) (501) (327) (279) (180) Redeemable Unit Transactions Proceeds from Redeemable Units Issued 40,087 296,866 1,267 20,072 3,202 12,657 Reinvestments of Distributions to Holders of Redeemable Units 7,865 5,453 500 327 272 179 Early Redemption Fees on Redeemable Units 0 1 0 0 0 0 Redemption of Redeemable Units (220,478) (226,433) (4,444) (3,387) (6,943) (6,115) Net Increase (Decrease) from Redeemable Unit Transactions (172,526) 75,887 (2,677) 17,012 (3,469) 6,721 Net Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units (109,039) 274,427 (1,498) 19,541 (1,649) 11,877 Net Assets Attributable to Holders of Redeemable Units at End of the Period $ 1,165,726 $ 1,274,765 $ 21,809 $ 23,307 $ 33,603 $ 35,252 Redeemable Unit Transactions Redeemable Units Outstanding, Beginning of the Period 35,398 33,058 1,232 237 3,003 2,370 Redeemable Units Issued 1,099 9,092 66 1,168 269 1,188 Redeemable Units Issued on Reinvestments 208 166 25 18 22 16 Redeemable Units Redeemed (6,052) (6,918) (231) (191) (584) (571) Redeemable Units Outstanding, End of the Period 30,653 35,398 1,092 1,232 2,710 3,003 Advisor Series F-Series Premium F-Series 2017 2016 2017 2016 2017 2016 Net Assets Attributable to Holders of Redeemable Units at Beginning of the Period $ 82,556 $ 64,243 $ 17,557 $ 10,023 $ 16,514 $ 11,386 Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units 4,169 13,161 1,986 2,528 262 2,651 Distributions to Holders of Redeemable Units From Net Investment Income (257) (348) (405) (218) 0 (244) From Net Realized Gains on Investments (216) 0 (76) 0 0 0 (473) (348) (481) (218) 0 (244) Redeemable Unit Transactions Proceeds from Redeemable Units Issued 5,647 28,176 15,044 9,587 0 3,508 Reinvestments of Distributions to Holders of Redeemable Units 461 341 401 190 0 218 Early Redemption Fees on Redeemable Units 0 0 0 0 0 0 Redemption of Redeemable Units (26,315) (23,017) (4,792) (4,553) (16,776) (1,005) Net Increase (Decrease) from Redeemable Unit Transactions (20,207) 5,500 10,653 5,224 (16,776) 2,721 Net Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units (16,511) 18,313 12,158 7,534 (16,514) 5,128 Net Assets Attributable to Holders of Redeemable Units at End of the Period $ 66,045 $ 82,556 $ 29,715 $ 17,557 $ N/A $ 16,514 Redeemable Unit Transactions Redeemable Units Outstanding, Beginning of the Period 5,490 5,084 1,100 748 1,347 1,107 Redeemable Units Issued 371 2,065 929 652 0 311 Redeemable Units Issued on Reinvestments 29 25 24 13 0 19 Redeemable Units Redeemed (1,729) (1,684) (295) (313) (1,347) (90) Redeemable Units Outstanding, End of the Period 4,161 5,490 1,758 1,100 N/A 1,347 The accompanying notes are an integral part of the financial statements. 6

ntd Canadian Equity Fund Statements of Changes in Net Assets Attributable to Holders of Redeemable Units (in 000s) for the periods ended and 2016 D-Series Private Series 2017 2016 2017 2016 Net Assets Attributable to Holders of Redeemable Units at Beginning of the Period $ 5,279 $ 1,723 $ 50,517 $ N/A Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units 651 673 4,347 11,329 Distributions to Holders of Redeemable Units From Net Investment Income (98) (41) (1,286) (941) From Net Realized Gains on Investments (24) 0 (148) 0 (122) (41) (1,434) (941) Redeemable Unit Transactions Proceeds from Redeemable Units Issued 6,648 4,009 14,028 50,871 Reinvestments of Distributions to Holders of Redeemable Units 119 36 0 0 Early Redemption Fees on Redeemable Units 0 0 0 0 Redemption of Redeemable Units (2,374) (1,121) (14,175) (10,742) Net Increase (Decrease) from Redeemable Unit Transactions 4,393 2,924 (147) 40,129 Net Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units 4,922 3,556 2,766 50,517 Net Assets Attributable to Holders of Redeemable Units at End of the Period $ 10,201 $ 5,279 $ 53,283 $ 50,517 Redeemable Unit Transactions Redeemable Units Outstanding, Beginning of the Period 469 183 4,096 N/A Redeemable Units Issued 584 393 1,112 5,034 Redeemable Units Issued on Reinvestments 10 3 0 0 Redeemable Units Redeemed (207) (110) (1,123) (938) Redeemable Units Outstanding, End of the Period 856 469 4,085 4,096 O-Series TOTAL 2017 2016 2017 2016 Net Assets Attributable to Holders of Redeemable Units at Beginning of the Period $ 3,415,697 $ 1,632,670 $ 4,921,444 $ 2,747,524 Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units 296,599 523,534 383,203 766,103 Distributions to Holders of Redeemable Units From Net Investment Income (89,151) (69,211) (96,244) (77,005) From Net Realized Gains on Investments (10,193) 0 (14,313) 0 (99,344) (69,211) (110,557) (77,005) Redeemable Unit Transactions Proceeds from Redeemable Units Issued 329,662 1,613,010 415,585 2,038,756 Reinvestments of Distributions to Holders of Redeemable Units 99,345 69,211 108,963 75,955 Early Redemption Fees on Redeemable Units 0 1 0 2 Redemption of Redeemable Units (406,180) (353,518) (702,477) (629,891) Net Increase (Decrease) from Redeemable Unit Transactions 22,827 1,328,704 (177,929) 1,484,822 Net Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units 220,082 1,783,027 94,717 2,173,920 Net Assets Attributable to Holders of Redeemable Units at End of the Period $ 3,635,779 $ 3,415,697 $ 5,016,161 $ 4,921,444 Redeemable Unit Transactions Redeemable Units Outstanding, Beginning of the Period 219,477 124,997 Redeemable Units Issued 20,857 115,294 Redeemable Units Issued on Reinvestments 6,076 4,641 Redeemable Units Redeemed (25,345) (25,455) Redeemable Units Outstanding, End of the Period 221,065 219,477 The accompanying notes are an integral part of the financial statements. 7

ntd Canadian Equity Fund Statements of Cash Flows (in 000s) for the periods ended and 2016 2017 2016 Cash Flows from (used in) Operating Activities Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units $ 383,203 $ 766,103 Adjustment For: Unrealized Foreign Exchange (Gain) Loss on Cash (192) 192 Net Realized (Gain) Loss on Sale of Investments and Derivatives (141,088) (107,636) Net Change in Unrealized Appreciation/ Depreciation of Investments and Derivatives (141,159) (569,911) Purchase of Investments (836,830) (13,761,531) Proceeds from Sale and/or Maturity of Investments 998,276 13,779,701 (Increase) Decrease in Dividends Receivable 3,141 (6,200) Increase (Decrease) in Accrued Liabilities (19) (1,908) Net Cash from (used in) Operating Activities 265,332 98,810 Cash Flows from (used in) Financing Activities Distributions Paid to Holders of Redeemable Units, Net of Reinvested Distributions (1,594) (1,050) Proceeds from Issuance of Redeemable Units 393,607 542,897 Amounts Paid on Redemption of Redeemable Units, Net of Early Redemption Fees (663,086) (600,951) Net Cash from (used in) Financing Activities (271,073) (59,104) Unrealized Foreign Exchange Gain (Loss) on Cash 192 (192) Net Increase (Decrease) in Cash (5,741) 39,706 Cash (Bank Overdraft) at Beginning of the Period 40,244 730 Cash (Bank Overdraft) at End of the Period $ 34,695 $ 40,244 Interest for Distribution Purposes Received*, Net of Withholding Taxes $ 690 $ 412 Dividends Received*, Net of Withholding Taxes $ 135,552 $ 109,369 * Included as part of Cash Flows from (used in) Operating Activities. The accompanying notes are an integral part of the financial statements. 8

ntd Canadian Equity Fund Schedule of Investment Portfolio (in 000s except number of Shares or Units/Par Value) as at No. of Shares or Units/ Par Value Description Cost Fair Value Canadian Equities 88.2% ENERGY 22.6% 3,476,602 ARC Resources Ltd. $ 79,102 $ 51,280 4,448,700 Canadian Natural Resources Limited 154,352 199,836 10,088,791 Cenovus Energy Inc. 226,299 115,819 1,419,607 Crescent Point Energy Corp. 36,701 13,600 4,221,188 Enbridge Inc. 205,984 207,514 1,401,682 Kinder Morgan Canada Ltd. 23,829 23,843 1,101,400 MEG Energy Corp. 21,714 5,661 1,803,800 Precision Drilling Corporation 12,731 6,872 2,241,100 Seven Generations Energy Ltd. 57,221 39,847 4,837,266 Suncor Energy Inc. 163,816 223,240 1,640,000 Tourmaline Oil Corp. 57,352 37,359 2,696,310 TransCanada Corporation 137,499 164,960 4,900,800 Whitecap Resources Inc. 50,641 43,862 1,227,241 1,133,693 MATERIALS 5.6% 1,442,009 Agnico Eagle Mines Limited 80,619 83,694 1,142,419 Franco-Nevada Corporation 70,099 114,768 2,550,600 Teck Resources Limited, Class B SV 58,347 83,838 209,065 282,300 INDUSTRIALS 5.7% 1,580,000 Canadian National Railway Company 89,356 163,767 530,300 Canadian Pacific Railway Limited 109,559 121,789 198,915 285,556 CONSUMER DISCRETIONARY 3.4% 1,785,250 Aritzia Inc. 29,536 22,655 471,900 Dollarama Inc. 22,855 74,112 3,059,774 Quebecor Inc., Class B SV 48,879 72,516 101,270 169,283 CONSUMER STAPLES 4.7% 2,100,500 Alimentation Couche-Tard Inc., Class B SV 103,210 137,772 1,454,699 Loblaw Companies Limited 98,930 99,239 202,140 237,011 FINANCIALS 41.5% 729,096 Bank of Montreal 60,110 73,340 4,779,853 The Bank of Nova Scotia 287,660 387,742 2,835,427 Brookfield Asset Management Inc., Class A 87,868 155,154 1,333,684 Canadian Imperial Bank of Commerce 114,001 163,430 213,901 Intact Financial Corporation 20,480 22,457 8,900,802 Manulife Financial Corporation 145,731 233,379 2,154,450 Power Financial Corporation 71,165 74,415 3,935,036 Royal Bank of Canada 257,727 403,931 3,106,829 Sun Life Financial Inc. 142,461 161,182 5,493,359 The Toronto-Dominion Bank* 237,694 404,586 1,424,897 2,079,616 No. of Shares or Units/ Par Value Description Cost Fair Value INFORMATION TECHNOLOGY 1.4% 628,500 CGI Group Inc., Class A SV $ 40,028 $ 42,927 33,284 Constellation Software Inc. 19,885 25,363 59,913 68,290 TELECOMMUNICATION SERVICES 2.2% 2,349,788 TELUS Corporation 82,755 111,897 UTILITIES 0.4% 480,690 Fortis Inc. 19,010 22,165 ROYALTY/INCOME TRUSTS 0.7% 580,615 Brookfield Infrastructure Partners L.P. 9,129 32,735 Total Canadian Equities 3,534,335 4,422,546 U.S. Equities 10.5% ENERGY 1.2% 736,000 Schlumberger Ltd. 64,296 62,346 INDUSTRIALS 3.5% 324,900 Honeywell International Inc. 43,474 62,632 280,900 Union Pacific Corporation 28,537 47,350 408,000 United Technologies Corporation 55,999 65,425 128,010 175,407 CONSUMER DISCRETIONARY 1.0% 221,500 The Home Depot Inc. 34,968 52,770 CONSUMER STAPLES 1.2% 388,800 PepsiCo Inc. 44,065 58,608 HEALTH CARE 0.5% 142,200 Johnson & Johnson 20,421 24,974 INFORMATION TECHNOLOGY 3.1% 41,300 Alphabet Inc., Class A 33,963 54,686 839,400 Oracle Corporation 43,503 49,886 349,000 Visa Inc. 27,804 50,020 105,270 154,592 Total U.S. Equities 397,030 528,697 International Equities 0.6% IRELAND 0.6% 290,800 Medtronic PLC 29,862 29,517 SINGAPORE 0.0% 42,412 I-Pulse Inc. (Restricted) 101 110 Total International Equities 29,963 29,627 Transaction Costs (2,582) TOTAL INVESTMENT PORTFOLIO 99.3% $ 3,958,746 $ 4,980,870 FORWARD CONTRACTS (SCHEDULE 1) 0.1% 5,031 OTHER NET ASSETS (LIABILITIES) 0.6% 30,260 TOTAL NET ASSETS 100.0% $ 5,016,161 * Related party to the Fund as an affiliated entity of TD Asset Management Inc. 9

TD Canadian Equity Fund Schedule 1 Foreign Exchange Forward Contracts (in 000s except contract price and total number of contract(s)) Canadian Value Canadian Value Settlement Currency to be as at Currency to be as at Contract CAD Unrealized Date Delivered Received Price Appreciation January 31, 2018 35,905 USD $ 45,110 45,461 CAD $ 45,461 1.26613 $ 351 January 31, 2018 34,685 USD 43,577 43,916 CAD 43,916 1.26614 339 January 31, 2018 33,696 USD 42,334 42,661 CAD 42,661 1.26608 327 February 28, 2018 34,422 USD 43,232 43,755 CAD 43,755 1.27117 523 February 28, 2018 34,136 USD 42,874 43,391 CAD 43,391 1.27110 517 February 28, 2018 21,541 USD 27,055 27,381 CAD 27,381 1.27110 326 February 28, 2018 10,973 USD 13,782 13,949 CAD 13,949 1.27115 167 March 28, 2018 34,200 USD 42,939 44,030 CAD 44,030 1.28745 1,091 March 28, 2018 26,421 USD 33,173 34,011 CAD 34,011 1.28725 838 March 28, 2018 24,525 USD 30,793 31,570 CAD 31,570 1.28720 777 March 28, 2018 16,724 USD 20,998 21,282 CAD 21,282 1.27246 to 1.27546 284 $ 385,867 $ 391,407 $ 5,540 Canadian Value Canadian Value Settlement Currency to be as at Currency to be as at Contract CAD Unrealized Date Delivered Received Price Depreciation January 31, 2018 15,858 CAD $ 15,858 12,470 USD $ 15,667 1.26633 to 1.28961 $ (191) January 31, 2018 2,271 CAD 2,271 1,796 USD 2,257 1.26393 (14) February 28, 2018 21,629 CAD 21,629 17,015 USD 21,370 1.27117 (259) March 28, 2018 1,805 CAD 1,805 1,402 USD 1,760 1.28745 (45) $ 41,563 $ 41,054 $ (509) TOTAL NUMBER OF CONTRACT(S): 29 CAD NET UNREALIZED APPRECIATION $ 5,031 10

ntd Canadian Equity Fund Fund-Specific Notes to the Financial Statements (A) The Fund (I) The Fund start date was June 29, 1988. (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) At, TD and funds managed by TDAM held 72.5% (2016: 69.0%) of the net assets of the Fund. (IV) The presentation and functional currency of the Fund is the Canadian dollar. (V) The investment objective of the Fund is to seek to achieve long-term capital appreciation through investments in high-quality equity securities issued principally by Canadian corporations judged to offer high growth potential. In seeking to achieve this objective, the Fund emphasizes growth while containing investment risk by focusing on the quality of management, superior return on equity and sound balance sheets of individual companies, and the long-term prospects for individual industries. The Fund may invest in exchange-traded funds. (VI) Private Series was launched on February 4, 2016. (VII) Any related party holdings as at (2016: 7.7%), are disclosed in the Schedule of Investment Portfolio. (B) Management Fees and Administration Fees (Note 6) for the periods ended and 2016 (I) MANAGEMENT FEES (%) (exclusive of GST and HST) Annual Annual Rate Maximum Actual Rate After Waiver Annual Rate Annual Rate Series 2017 2017 2016 2016 Investor Series 1.85 1.85 1.85 1.85 Institutional Series 0.55 0.49 1.00 0.49 Premium Series 1.70* 1.70 1.70 1.70 Advisor Series 1.85 1.85 1.85 1.85 F-Series 0.90 0.90 0.90 0.90 Premium F-Series 0.75* 0.75 0.75 0.75 D-Series 1.10 1.10 1.10 1.10 Private Series 0.00 0.00 0.00 0.00 O-Series 0.00 0.00 0.00 0.00 Includes management fees paid by the Fund and the proportionate management fees, if any, of the underlying fund(s) managed by TDAM held by the Fund. However, there is no duplication of management fees paid to TDAM or its affiliates if the Fund invests in underlying fund(s) that are managed by TDAM. * The rate disclosed represents the maximum annual rate per the simplified prospectus dated July 28, 2016. The series is no longer being offered under the most recent simplified prospectus. Refer to the Significant Events section for further details. The amount payable (in 000s) to TDAM as at for management fees is $0 (2016: $0) which is included in Accrued Liabilities in the Statements of Financial Position. (II) ADMINISTRATION FEES (%) (exclusive of GST and HST) Annual Rate Series 2017 2016 Investor Series 0.12 0.12 Premium Series 0.12 0.12 Advisor Series 0.12 0.12 D-Series 0.12 0.12 (C) Brokerage Commissions and Soft Dollars (in 000s) (Notes 3 and 6) for the periods ended and 2016 (I) BROKERAGE COMMISSIONS 2017 2016 Total Brokerage Commissions $ 1,422 $ 1,257 Paid to Related Parties 122 132 (II) SOFT DOLLARS 2017 2016 Soft Dollars $ 217 $ 83 Percentage of Total Commissions (%) 15.3 6.6 (D) Tax Loss Carry Forwards (in 000s) (Note 7) as at 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 securities 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 $ 202 $ 132 100.0 100.0 Agent fees The Bank of New York Mellon Corp. (40) (26) (19.8) (19.7) Securities Lending Income to the Fund before Tax Reclaims (Withholding Taxes) 162 106 80.2 80.3 Tax Reclaims (Withholding Taxes) (4) (2) (2.0) (1.5) Net Securities Lending Income $ 158 $ 104 78.2 78.8 (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 2016. 2017 2016 Fair Value of Securities Lent $ 320,022 $ 173,174 Fair Value of Collateral Held 336,880 183,278 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. The amount payable (in 000s) to TDAM as at for administration fees is $122 (2016: $139) which is included in Accrued Liabilities in the Statements of Financial Position. 11

TD Canadian Equity Fund Fund-Specific Notes to the Financial Statements (F) Financial Risk Management (Notes 3, 4 and 8) as at and 2016 (I) INTEREST RATE RISK Not significant or applicable to the Fund. (II) CURRENCY RISK The following table indicates the foreign currencies to which the fund had exposure to as at and 2016 in Canadian dollar terms, including the underlying principal amount of foreign exchange forward contracts, as applicable. The table also illustrates the potential impact to the Fund s net assets if the Fund s functional currency, the Canadian dollar, had strengthened or weakened by 5 percent in relation to all exposure 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* United States Dollar $ 559,335 $ (344,813) $ 214,522 $ 10,726 As Percentage of Net Assets (%) 4.3 0.2 Total Impact on Currency (in 000s) Exposure* Net Assets* December 31, 2016 United States Dollar $ 189,635 $ 9,482 As Percentage of Net Assets (%) 3.9 0.2 * Includes both monetary and non-monetary instruments, where applicable. (III) OTHER PRICE RISK The table below summarizes the impact of other price risk to the Fund. As at and 2016, 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 2017 2016 2017 2016 S&P/TSX Composite Total Return Index $ 256,515 $ 252,984 5.1 5.1 In practice, the actual trading results may differ from the above estimated amounts and the differences could be material. (IV) CREDIT RISK Not significant or applicable to the Fund. (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 2016. Level 1 Level 2 Level 3 Total Common Shares $ 4,980,760 $ 0 $ 110 $ 4,980,870 Forward Contracts 0 5,223 0 5,223 4,980,760 5,223 110 4,986,093 Forward Contracts 0 (192) 0 (192) $ 4,980,760 $ 5,031 $ 110 $ 4,985,901 December 31, 2016 Common Shares $ 4,864,570 $ 0 $ 118 $ 4,864,688 Forward Contracts 0 1,889 0 1,889 4,864,570 1,889 118 4,866,577 Forward Contracts 0 (1,496) 0 (1,496) $ 4,864,570 $ 393 $ 118 $ 4,865,081 As at the end of the periods, transfers between Level 1 and Level 2 were nil. (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, 2017 to and January 1, 2016 to December 31, 2016. Common Shares Balance at January 1, 2017 $ 118 Gains (Losses) Net Change in Unrealized Appreciation/ Depreciation of Investments (8) Balance at $ 110 Total Change in Unrealized Appreciation/Depreciation for Assets Held at $ (8) Common Shares Balance at January 1, 2016 $ 122 Gains (Losses) Net Change in Unrealized Appreciation/ Depreciation of Investments (4) Balance at December 31, 2016 $ 118 Total Change in Unrealized Appreciation/Depreciation for Assets Held at December 31, 2016 $ (4) (VII) CONTRACTUAL MATURITIES ANALYSIS FOR FINANCIAL LIABILITIES As at and 2016, the Fund s net assets are due on demand. All other financial liabilities of the Fund are due in less than three months. 12

TD Canadian Equity Fund Fund-Specific Notes to the Financial Statements (G) Investment Portfolio Concentration (%) (Note 8) As at and 2016, the Fund s investment portfolio concentration can be summarized as follows: 2017 2016 Canadian Equities Energy 22.6 23.8 Materials 5.6 6.5 Industrials 5.7 4.3 Consumer Discretionary 3.4 3.9 Consumer Staples 4.7 3.5 Financials 41.5 39.5 Information Technology 1.4 1.0 Telecommunication Services 2.2 4.0 Utilities 0.4 0.8 Royalty/Income Trusts 0.7 0.5 U.S. Equities Energy 1.2 0.5 Industrials 3.5 3.3 Consumer Discretionary 1.0 1.0 Consumer Staples 1.2 1.8 Health Care 0.5 0.5 Information Technology 3.1 3.3 International Equities Ireland 0.6 0.6 Singapore 0.0 0.0 Forward Contracts 0.1 0.0 Other Net Assets (Liabilities) 0.6 1.2 100.0 100.0 (H) Interest in Unconsolidated Structured Entities (in 000s) (Note 3) as at and 2016 Not significant or applicable to the Fund. (I) Offsetting of Financial Assets and Liabilities (in 000s) (Note 3) The following table presents the recognized financial instruments that are offset, or subject to enforceable master netting arrangements, if certain conditions arise, or other similar agreements but that are not offset, and cash and financial instruments collateral received or pledged, as at and 2016 and shows in the Net Amount column what the impact would be on the Fund s Statements of Financial Position if all set-off rights were exercised. Related Amounts Not Amounts Net Amounts Set-Off on the Statements Gross Amounts Set-Off on the Presented on of Financial Position of Recognized Statements the Statements Financial Assets of Financial of Financial Financial (Liabilities) Position Position Instruments Cash Net Amount Derivative Assets $ 5,540 $ (317) $ 5,223 $ (192) $ 0 $ 5,031 Derivative Liabilities (509) 317 (192) 192 0 0 December 31, 2016 Derivative Assets $ 2,236 $ (347) $ 1,889 $ (1,347) $ 0 $ 542 Derivative Liabilities (1,843) 347 (1,496) 1,347 0 (149) (J) Significant Events The following changes were made: The Premium Series was closed to all purchases effective March 28, 2017. The Premium F-Series was closed to all purchases effective end of business on November 21, 2016 and was terminated on March 28, 2017. 13

nnotes to the Financial Statements 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 the Declaration of Trust, as amended from time to time. The TD Managed Assets Program Portfolios invest primarily in units of other investment funds including in units of 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 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 that Fund or series is provided from the inception date and a comparative statement has only been presented for any period for which that Fund was in existence as at the reporting date. Each Fund s start date as indicated in the Fund-Specific Notes to the Financial Statements is the date that it commenced operations or in the case of a new series, the date the series was first offered and not its inception date. These financial statements were authorized for issue by TDAM on March 16, 2018. 2. Basis of Presentation These financial statements have been prepared in compliance with International Financial Reporting Standards ( IFRS ) as published by the International Accounting Standards Board ( IASB ). 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 The Funds recognize 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 Funds 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 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 significant judgment that the Funds have made in determining that this definition is met is that fair value is the primary measurement attribute used to measure and evaluate the performance of substantially all of the Funds investments. The Funds investments may also include associates and joint ventures which are designated 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 outstanding redeemable units are classified as financial liabilities in accordance with the requirements of IAS 32, Financial Instruments: Presentation ( IAS 32 ). 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 investments 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. 14

nnotes to the Financial Statements 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 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 Funds 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 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 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 Derivatives. (e) The Funds 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 in the Statements of Comprehensive Income as part of Net Gain (Loss) on Derivatives. (f) The Funds may purchase standardized, exchange-traded futures contracts. 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 amounts receivable (payable) from settlement of futures contracts are reflected in 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 Funds, as applicable. (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 in 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 or increased by the amount paid on options when a purchased option is exercised. (h) Investments in underlying conventional mutual funds and TD Exchange-Traded Funds are generally valued at the NAV per series unit of the investment funds as reported by the investment funds managers. (i) 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. 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 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). 15

nnotes to the Financial Statements 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 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 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 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 2017 and 2016, and any transfers between levels at end of the reporting 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. 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 in which the Funds invest are unconsolidated structured entities. In making this determination, TDAM evaluated the fact that decision making about underlying funds activities is generally not governed by voting or similar rights held by the Funds and other investors in any underlying funds. The Funds may invest in underlying funds whose investment objectives range from achieving short- to long-term income and capital growth potential. The Funds interests in these securities as at December 31, 2017 and 2016 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 in Net Gain (Loss) on Investments. Additional information on the Funds interest in underlying funds, where applicable, is provided in the Fund- Specific Notes to the Financial Statements. 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. These Funds 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 2016, the fair value of mortgage-related and other asset-backed securities of these Funds, where applicable, is disclosed as part of the Investments in 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 in the Statements of Comprehensive Income in Net Gain (Loss) on Investments. Translation of Foreign Currencies A Fund s functional currency, as disclosed in the Fund-Specific Notes to the Financial Statements, 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. Realized foreign exchange gains and losses on income are recognized in invest - ment income in the Statements of Comprehensive Income. 16