TD Mutual Funds Annual Financial Report potx

for the period ended December 31, 2011
TD Mutual Funds
Annual Financial Report
TD High Yield Bond Fund
December 31, 2011 Annual Financial Report
n
Management’s Responsibility for Financial Reporting
The accompanying financial statements have been prepared by TD Asset
Management Inc. as Manager of the Fund and approved by its 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 Canadian generally accepted accounting principles. 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 Fund.
The Board of Directors of TD Asset Management Inc. is responsible for
reviewing and approving the financial statements and overseeing manage -
ment’s performance of its financial reporting responsibilities.
PricewaterhouseCoopers LLP is the external auditor of the Fund. The
auditor has audited the financial statements in accordance with Canadian
generally accepted auditing standards to enable it to express its opinion
on the financial statements. The auditor’s report is included on the
following page of this Annual Report.
On behalf of TD Asset Management Inc.,
Manager of the Fund
Sandra Cimoroni Francesca Shaw
Director and Officer, Director and
TD Mutual Funds Chief Financial Officer
March 7, 2012 March 7, 2012

1
December 31, 2011 Annual Financial Report
n
Independent Auditor’s Report
We have audited the financial statements of each of the Funds, which
comprise the statement of investment portfolio as at December 31, 2011
and the statements of net assets, investment operations and changes in
net assets as at and for the periods indicated in note 1, and the related
notes and supplementary schedules, 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 Canadian
generally accepted accounting principles, and for such internal control as
management determines is necessary to enable the preparation of financial
statements that are free from material misstatement, whether due to fraud
or error.
Auditor’s responsibility
Our responsibility is to express an opinion on the financial statements of
each of the Funds based on each of 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 an 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 procedures 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 accounting 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 of each of the Funds, the
results of each of their investment operations and the changes in each of
their net assets as at and for the periods indicated in note 1 in accordance
with Canadian generally accepted accounting principles.
Chartered Accountants, Licensed Public Accountants
Toronto, Ontario
March 7, 2012
To the Unitholders and Trustee of:
(collectively, the “Funds”)
TD Canadian T-Bill Fund
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 Mortgage Fund
TD Canadian Bond Fund
TD Income Advantage Portfolio
TD Canadian Core Plus Bond Fund
TD Corporate Bond Capital Yield Fund

TD Real Return Bond Fund
TD Global Bond Fund
TD High Yield Bond Fund
TD Monthly Income Fund
TD U.S. Monthly Income Fund
TD Balanced Income Fund
TD Diversified Monthly Income Fund
TD Balanced Growth Fund
TD Dividend Income Fund
TD Dividend Growth Fund
TD Canadian Blue Chip Equity Fund
TD Canadian Equity Fund
TD Canadian Value Fund
TD Canadian Small-Cap Equity Fund
TD North American Dividend Fund
TD U.S. Blue Chip Equity Fund
TD U.S. Quantitative Equity Fund
TD U.S. Large-Cap Value Fund
TD U.S. Large-Cap Value Currency Neutral Fund
TD U.S. Equity Portfolio
TD U.S. Equity Currency Neutral Portfolio
TD U.S. Mid-Cap Growth Fund
TD U.S. Small-Cap Equity Fund
TD Global Low Volatility Fund
TD Global Dividend Fund
TD Global Value Fund
TD Global Growth Fund
TD Global Equity Portfolio
TD Global Multi-Cap Fund
TD Global Sustainability Fund

TD International Value Fund
TD International Growth Fund
TD European Growth Fund
TD Japanese Growth Fund
TD Asian Growth Fund
TD Pacific Rim Fund
TD Emerging Markets Fund
TD Latin American Growth Fund
TD Resource Fund
TD Energy 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
SM
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 Japanese Index Fund
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 Target Return Conservative Fund
TD Target Return Balanced Fund
2
December 31, 2011 Annual Financial Report
n
TD High Yield Bond Fund
Statements of Net Assets (in 000s except per unit amounts and number of units)
as at December 31, 2011 and 2010
2011 2010
Assets
Investments at Fair Value
(Note 2) $ 1,368,257 $ 1,254,844
Short-Term Investments 68,964 26,233
Foreign Currencies 93 2,816
Cash 279 154
Interest Receivable 26,312 23,033
Dividends Receivable 72 120
Subscriptions Receivable 3,380 1,325
Receivable for Investment Sales 0 3,151
Unrealized Gain on Open Foreign

Exchange Forward Contracts 20,844 25,912
1,488,201 1,337,588
Liabilities
Accrued Liabilities 607 642
Redemptions Payable 712 1,610
Unrealized Loss on Open Foreign
Exchange Forward Contracts 2,411 3,460
3,730 5,712
Net Assets (Note 2) $ 1,484,471 $ 1,331,876
Net Assets Representing Unitholders’ Equity
(Note 3)
Investor Series $ 87,760 $ 99,343
Institutional Series $ 109,897 $ 90,427
Advisor Series $ 198,220 $ 210,078
F-Series $ 54,346 $ 50,085
H-Series $ 1,313 $ 977
S-Series $ 415 $ 6
T-Series $ 8,696 $ 7,366
Q-Series $ 62,440 $ 38,686
O-Series $ 961,384 $ 834,908
$ 1,484,471 $ 1,331,876
Number of Units Outstanding
Investor Series 14,828,533 16,048,577
Institutional Series 16,616,762 13,084,315
Advisor Series 28,634,588 29,020,306
F-Series 8,341,382 7,352,307
H-Series 84,767 58,513
S-Series 26,925 359
T-Series 561,785 441,319
Q-Series 4,103,733 2,357,859

O-Series 101,374,188 84,226,905
Net Assets Per Unit
(Note 2)
Investor Series $ 5.92 $ 6.19
Institutional Series $ 6.61 $ 6.91
Advisor Series $ 6.92 $ 7.24
F-Series $ 6.52 $ 6.81
H-Series $ 15.49 $ 16.69
S-Series $ 15.40 $ 16.61
T-Series $ 15.48 $ 16.69
Q-Series $ 15.22 $ 16.41
O-Series $ 9.48 $ 9.91
Statements of Investment Operations (in 000s except per unit amounts)
for the periods ended December 31, 2011 and 2010
2011 2010
Investment Income
Interest $ 101,152 $ 94,558
Dividends 120 398
Foreign Exchange (10,111) 40,147
Securities Lending 1 1
Less: Withholding Taxes (199) (36)
90,963 135,068
Expenses
(Note 4)
Management Fees 7,147 7,582
Administration Fees 525 477
Independent Review Committee Fees 5 6
Bank Charges and Interest 6 6
7,683 8,071
Less: Waived Expenses (9) (9)

7,674 8,062
Net Investment Income (Loss) 83,289 127,006
Net Realized Gain (Loss) on
Sale of Investments (8,557) (53,248)
Net Change in Unrealized Appreciation/
Depreciation of Investments (45,117) 101,651
Transaction Costs on Purchases
and Sales of Investments (15) (9)
Net Gain (Loss) on Investments (53,689) 48,394
Increase (Decrease) in Net Assets
from Investment Operations
†
$ 29,600 $ 175,400
†
Increase (Decrease) in Net Assets from Investment Operations
Investor Series $ 598 $ 11,604
Institutional Series $ 1,684 $ 66,711
Advisor Series $ 1,494 $ 23,327
F-Series $ 806 $ 6,295
H-Series $ (18) $ 39
S-Series $ (1) $ 248
T-Series $ 27 $ 340
Q-Series $ 561 $ 4,121
O-Series $ 24,449 $ 62,715
$ 29,600 $ 175,400
Increase (Decrease) in Net Assets from Investment Operations –
Per Unit (Note 2)
Investor Series $ 0.04 $ 0.76
Institutional Series $ 0.15 $ 0.95
Advisor Series $ 0.05 $ 0.89

F-Series $ 0.12 $ 0.91
H-Series $ 0.13 $ 2.09
S-Series $ 0.31 $ 2.26
T-Series $ 0.13 $ 2.09
Q-Series $ 0.35 $ 2.28
O-Series $ 0.27 $ 0.80
The accompanying notes are an integral part of these financial statements.
3
December 31, 2011 Annual Financial Report
Statements of Changes in Net Assets (in 000s except number of units)
for the periods ended December 31, 2011 and 2010
Investor Series Institutional Series Advisor Series
2011 2010 2011 2010 2011 2010
Net Assets, Beginning of the Period $ 99,343 $ 90,909 $ 90,427 $ 905,359 $ 210,078 $ 171,152
Increase (Decrease) in Net Assets
from Investment Operations 598 11,604 1,684 66,711 1,494 23,327
Capital Unit Transactions
†
Proceeds from Sale of Units 38,469 53,404 55,581 28,090 67,861 90,560
Reinvestments of Distributions 4,745 7,959 836 16,278 8,289 14,272
Early Redemption Fees 1 2 2 6 3 3
Amounts Paid on Redemptions (50,287) (55,967) (31,982) (901,967) (78,956) (71,479)
(7,072) 5,398 24,437 (857,593) (2,803) 33,356
Distributions to Unitholders
From Net Investment Income (5,109) (8,568) (6,651) (24,050) (10,549) (17,757)
From Net Realized Gains on Investments 0 0 0 0 0 0
(5,109) (8,568) (6,651) (24,050) (10,549) (17,757)
Increase (Decrease) in Net Assets
for the Period (11,583) 8,434 19,470 (814,932) (11,858) 38,926
Net Assets, End of the Period $ 87,760 $ 99,343 $ 109,897 $ 90,427 $ 198,220 $ 210,078

†
Capital Unit Transactions
Units Outstanding, Beginning of the Period 16,048,577 15,191,043 13,084,315 135,472,462 29,020,306 24,459,686
Units Issued 6,146,863 8,530,900 8,079,309 3,996,889 9,402,916 12,380,691
Units Issued on Reinvestments 770,001 1,279,082 121,445 2,366,472 1,151,158 1,960,925
Units Redeemed (8,136,908) (8,952,448) (4,668,307) (128,751,508) (10,939,792) (9,780,996)
Units Outstanding, End of the Period 14,828,533 16,048,577 16,616,762 13,084,315 28,634,588 29,020,306
F-Series H-Series S-Series
2011 2010 2011 2010 2011 2010
Net Assets, Beginning of the Period $ 50,085 $ 45,503 $ 977 $ 90 $ 6 $ 4,654
Increase (Decrease) in Net Assets
from Investment Operations 806 6,295 (18) 39 (1) 248
Capital Unit Transactions
†
Proceeds from Sale of Units 22,029 16,751 1,419 1,040 473 265
Reinvestments of Distributions 2,063 2,803 88 42 11 5
Early Redemption Fees 1 1 0 0 0 0
Amounts Paid on Redemptions (17,355) (16,466) (1,031) (174) (54) (5,090)
6,738 3,089 476 908 430 (4,820)
Distributions to Unitholders
From Net Investment Income (3,283) (4,802) (76) (52) (12) (59)
From Net Realized Gains on Investments 0 0 0 0 0 0
From Return of Capital 0 0 (46) (8) (8) (17)
(3,283) (4,802) (122) (60) (20) (76)
Increase (Decrease) in Net Assets
for the Period 4,261 4,582 336 887 409 (4,648)
Net Assets, End of the Period $ 54,346 $ 50,085 $ 1,313 $ 977 $ 415 $ 6
†
Capital Unit Transactions
Units Outstanding, Beginning of the Period 7,352,307 6,910,478 58,513 5,480 359 284,422

Units Issued 3,241,032 2,428,405 84,331 60,583 29,336 15,786
Units Issued on Reinvestments 305,130 409,336 5,339 2,470 705 304
Units Redeemed (2,557,087) (2,395,912) (63,416) (10,020) (3,475) (300,153)
Units Outstanding, End of the Period 8,341,382 7,352,307 84,767 58,513 26,925 359
n
TD High Yield Bond Fund
The accompanying notes are an integral part of these financial statements.
4
December 31, 2011 Annual Financial Report
Statements of Changes in Net Assets (in 000s except number of units)
for the periods ended December 31, 2011 and 2010
T-Series Q-Series
2011 2010 2011 2010
Net Assets, Beginning of the Period $ 7,366 $ 717 $ 38,686 $ 24,553
Increase (Decrease) in Net Assets
from Investment Operations 27 340 561 4,121
Capital Unit Transactions
†
Proceeds from Sale of Units 3,419 7,467 42,600 22,384
Reinvestments of Distributions 143 120 0 0
Early Redemption Fees 0 0 0 0
Amounts Paid on Redemptions (1,581) (784) (14,394) (8,283)
1,981 6,803 28,206 14,101
Distributions to Unitholders
From Net Investment Income (420) (412) (3,302) (3,494)
From Net Realized Gains on Investments 0 0 0 0
From Return of Capital (258) (82) (1,711) (595)
(678) (494) (5,013) (4,089)
Increase (Decrease) in Net Assets
for the Period 1,330 6,649 23,754 14,133

Net Assets, End of the Period $ 8,696 $ 7,366 $ 62,440 $ 38,686
†
Capital Unit Transactions
Units Outstanding, Beginning of the Period 441,319 43,686 2,357,859 1,520,918
Units Issued 208,063 436,553 2,651,642 1,332,706
Units Issued on Reinvestments 8,744 7,090 1 1
Units Redeemed (96,341) (46,010) (905,769) (495,766)
Units Outstanding, End of the Period 561,785 441,319 4,103,733 2,357,859
O-Series TOTAL
2011 2010 2011 2010
Net Assets, Beginning of the Period $ 834,908 $ 0 $ 1,331,876 $ 1,242,937
Increase (Decrease) in Net Assets
from Investment Operations 24,449 62,715 29,600 175,400
Capital Unit Transactions
†
Proceeds from Sale of Units 183,002 985,023 414,853 1,204,984
Reinvestments of Distributions 61,542 73,204 77,717 114,683
Early Redemption Fees 12 10 19 22
Amounts Paid on Redemptions (80,986) (212,840) (276,626) (1,273,050)
163,570 845,397 215,963 46,639
Distributions to Unitholders
From Net Investment Income (61,543) (73,204) (90,945) (132,398)
From Net Realized Gains on Investments 0 0 0 0
From Return of Capital 0 0 (2,023) (702)
(61,543) (73,204) (92,968) (133,100)
Increase (Decrease) in Net Assets
for the Period 126,476 834,908 152,595 88,939
Net Assets, End of the Period $ 961,384 $ 834,908 $ 1,484,471 $ 1,331,876
†
Capital Unit Transactions

Units Outstanding, Beginning of the Period 84,226,905 0
Units Issued 19,035,484 97,791,573
Units Issued on Reinvestments 6,255,811 7,325,678
Units Redeemed (8,144,012) (20,890,346)
Units Outstanding, End of the Period 101,374,188 84,226,905
n
TD High Yield Bond Fund
The accompanying notes are an integral part of these financial statements.
5
December 31, 2011 Annual Financial Report
Canadian Equities – 1.3%
MATERIALS – 0.5%
445,213 AbitibiBowater Inc. $ 35,853,142 $ 6,571,102
CONSUMER DISCRETIONARY – 0.8%
1,350,000 Postmedia Network Canada Corp.
(Restricted) 12,500,000 9,625,500
370,039 Postmedia Network Canada Corp.,
Class “NC” Variable Voting Shares 2,172,641 2,638,378
14,672,641 12,263,878
Total Canadian Equities 50,525,783 18,834,980
U.S. Equities – 2.9%
MATERIALS – 0.1%
299,036 INTERMET Corporation 8,407,222 0
2,500 PT Holdings Company Inc. 3,133,031 721,685
11,540,253 721,685
INDUSTRIALS – 0.1%
4,756 Dayton Superior Corporation, Class “A” 2,206,551 611,143
77,677 Quad/Graphics Inc. 4,019,481 1,130,262
6,226,032 1,741,405
CONSUMER DISCRETIONARY – 1.4%

522,794 Cooper-Standard Holdings Inc. 19,157,618 17,700,138
105,326 Cooper-Standard Holdings Inc.,
Warrants 27/11/2017 1,728,372 1,567,432
74,914 Lazy Days’ R.V. Center Inc. 12,172,867 630,845
262,313 Movie Gallery Inc. 11,840,394 668
11,300,000 Movie Gallery Inc., Escrow Shares 0 0
94,071 Muzak Holdings LLC, Units 3,348,437 903,279
48,247,688 20,802,362
FINANCIALS – 0.0%
132 Leucadia National Corporation 3,645 3,054
PREFERRED – 0.5%
41,666 Cooper-Standard Holdings Inc., Pref. 6,554,869 6,166,714
5,285 Dayton Superior Corporation,
Class “A” Pref. 2,451,568 679,119
900 Lazy Days’ R.V. Center Inc., Pref. 917,073 870,604
9,923,510 7,716,437
INDEX EQUIVALENTS – 0.8%
132,900 iShares iBoxx $ High Yield
Corporate Bond Fund 12,150,138 12,098,093
Total U.S. Equities 88,091,266 43,083,036
International Equities – 0.0%
AUSTRALIA – 0.0%
6,000 Xplorenet Limited, Warrants 15/05/2017 0 0
Canadian Bonds – 16.8%
CORPORATE BONDS – 16.8%
Air Canada
$ 4,000,000 10.125% due August 01, 2015 4,100,000 3,640,000
Armtec Holdings Limited
8,000,000 8.875% due September 22, 2017 8,000,000 5,200,000
Baytex Energy Corp. (USD)

1,000,000 Callable 6.75% due February 17, 2021 995,800 1,023,341
Black Press Group Ltd.
2,000,000 10.00% due February 04, 2014 2,000,000 2,000,000
Bombardier Inc.
5,500,000 Callable 7.35% due December 22, 2026 4,986,816 5,525,208
Bombardier Inc. (EUR)
2,000,000 6.125% due May 15, 2021 2,796,057 2,485,052
Bombardier Inc. (USD)
6,683,000 7.50% due March 15, 2018 6,915,515 7,281,312
Bowater Incorporated
10,500,000 Callable 10.85% due November 30, 2014 0 0
Cara Operations Ltd.
6,340,000 9.125% due December 01, 2015 6,401,875 6,329,433
Cascades Inc.
14,000,000 7.75% due December 15, 2016 14,107,077 13,976,667
Catalyst Paper Corporation (USD)
15,800,000 Callable 7.375% due March 01, 2014 12,557,405 764,197
5,000,000 11.00% due December 15, 2016 4,153,348 2,698,363
CHC Helicopter SA (USD)
13,185,000 9.25% due October 15, 2020 13,283,884 12,083,064
Corus Entertainment Inc.
70,000 7.25% due February 10, 2017 73,850 73,267
Data & Audio-Visual Enterprises Wireless Inc.
3,000,000 Callable 9.50% due April 29, 2018 3,000,000 2,705,625
Domtar Corporation (USD)
13,000,000 5.375% due December 01, 2013 12,526,852 13,369,623
Fairfax Financial Holdings Limited
7,000,000 6.40% due May 25, 2021 6,971,440 7,082,545
Fairfax Financial Holdings Limited (USD)
3,000,000 7.375% due April 15, 2018 3,318,997 3,284,162

Ford Credit Canada Limited
10,000,000 4.20% due November 14, 2013 9,994,900 10,005,275
13,200,000 4.875% due March 17, 2014 13,228,507 13,300,324
14,000,000 Callable 7.50% due August 18, 2015 14,846,500 14,975,625
Harvest Operations Corp. (USD)
3,160,000 6.875% due October 01, 2017 3,201,795 3,330,288
Iron Mountain Nova Scotia Funding Company
11,000,000 Callable 7.50% due March 15, 2017 10,587,500 11,221,860
Kruger Products L.P.
2,150,000 8.00% due August 09, 2018 2,150,000 2,096,250
Masonite International Inc. (USD)
6,100,000 Callable 8.25% due April 15, 2021 5,860,808 6,087,099
MPL 2 Acquisition Canco Inc. (USD)
2,212,000 Callable 9.875% due August 15, 2018 2,087,585 1,970,823
Newalta Corporation
4,000,000 7.625% due November 23, 2017 4,132,500 4,093,333
1,000,000 7.75% due November 14, 2019 1,000,000 1,021,250
NOVA Chemicals Corporation (USD)
32,500,000 Callable 6.50% due January 15, 2012 29,454,851 33,134,491
2,100,000 8.375% due November 01, 2016 2,260,820 2,330,774
$ $ $

Par Value Description Cost Fair Value
n
TD High Yield Bond Fund
Statement of Investment Portfolio as at December 31, 2011
No. of Shares
or Units Description Cost Fair Value
The accompanying notes are an integral part of these financial statements.
6

December 31, 2011 Annual Financial Report
$ $ $

Par Value Description Cost Fair Value
TD High Yield Bond Fund
$ $

Par Value Description Cost Fair Value
The accompanying notes are an integral part of these financial statements.
Precision Drilling Corporation
2,500,000 Callable 6.50% due March 15, 2019 2,536,250 2,529,167
Russel Metals Inc. (USD)
5,838,000 Callable 6.375% due March 01, 2014 6,097,127 5,944,544
Sherritt International Corporation
1,900,000 Callable 7.75% due October 15, 2015 1,831,625 1,969,667
11,250,000 Callable 8.00% due November 15, 2018 11,250,000 11,418,750
Teck Resources Limited (USD)
186,000 9.75% due May 15, 2014 230,561 222,569
Tembec Industries Inc. (USD)
6,000,000 Callable 11.25% due December 15, 2018 5,997,433 6,292,785
Trident Exploration Corp.
10,000,000 Callable 8.25% due April 13, 2018 9,998,750 9,150,000
Trinidad Drilling Ltd. (USD)
1,000,000 Callable 7.875% due January 15, 2019 1,017,996 1,048,798
Videotron Ltee
4,000,000 6.875% due July 15, 2021 4,000,000 4,010,000
West Fraser Timber Co., Ltd. (USD)
7,500,000 Callable 5.20% due October 15, 2014 6,218,325 7,646,421
Xplornet Communications Inc.
6,117,699 13.00% due May 15, 2017 6,117,699 6,117,699

Total Canadian Bonds 260,290,448 249,439,651
Global Bonds – 71.2%
AUSTRALIA – 1.5%
FMG Resources (August 2006) Pty Ltd. (USD)
15,550,000 Callable 7.00% due November 01, 2012 15,626,061 15,992,125
4,400,000 Callable 6.375% due February 01, 2016 4,243,263 4,345,891
2,400,000 Callable 6.875% due February 01, 2018 2,420,778 2,339,939
22,290,102 22,677,955
BERMUDA – 0.1%
Aircastle Ltd. (USD)
1,250,000 9.75% due August 01, 2018 1,304,399 1,333,271
CAYMAN ISLANDS – 3.2%
Seagate HDD Cayman (USD)
9,350,000 7.75% due December 15, 2018 9,505,578 10,127,578
Seagate Technology HDD Holdings (USD)
27,052,000 Callable 6.80% due October 01, 2016 24,208,552 29,473,898
UPCB Finance II Limited (EUR)
2,000,000 Callable 6.375% due July 01, 2020 2,676,198 2,458,615
Votorantim Overseas III (USD)
5,500,000 7.875% due January 23, 2014 6,976,077 6,160,413
43,366,405 48,220,504
FRANCE – 0.1%
Crown European Holdings SA (EUR)
1,000,000 Callable 7.125% due August 15, 2018 1,365,852 1,334,618
GERMANY – 0.7%
Auto-Teile-Unger Handels GmbH & Co. KG (EUR)
5,000,000 11.00% due May 15, 2014 6,940,212 5,353,436
Kabel BW GmbH (USD)
3,000,000 Callable 7.50% due March 15, 2019 3,028,049 3,207,488
Kabel BW GmbH (EUR)

1,000,000 Callable 7.50% due March 15, 2019 1,421,513 1,341,003
11,389,774 9,901,927
IRELAND – 0.8%
Smurfit Kappa Funding PLC (USD)
11,834,000 Callable 7.75% due April 01, 2015 10,942,404 12,049,971
JAPAN – 0.4%
eAccess Ltd. (EUR)
1,000,000 8.375% due April 01, 2018 1,390,345 1,141,075
eAccess Ltd. (USD)
5,000,000 Callable 8.25% due April 01, 2018 4,909,317 4,836,688
6,299,662 5,977,763
LIBERIA – 0.8%
Royal Caribbean Cruises Ltd. (USD)
11,000,000 6.875% due December 01, 2013 11,305,048 11,816,791
LUXEMBOURG – 1.1%
ConvaTec Healthcare E SA (USD)
3,000,000 10.5% due December 15, 2018 3,033,150 2,726,364
Evraz Group SA (USD)
12,500,000 Callable 8.875% due April 24, 2013 13,280,353 13,196,775
16,313,503 15,923,139
MEXICO – 0.6%
CEMEX SAB de CV (USD)
11,250,000 Callable 9.00% due January 11, 2018 10,857,352 9,135,612
NETHERLANDS – 0.1%
GMAC International Finance BV (EUR)
500,000 7.50% due April 21, 2015 639,181 624,568
LyondellBasell Industries NV (USD)
625,000 6.00% due November 15, 2021 635,375 660,271
1,274,556 1,284,839
NEW ZEALAND – 0.1%

Reynolds Group Holdings Limited (USD)
400,000 Callable 6.875% due February 15, 2021 397,300 405,264
500,000 Callable 8.25% due February 15, 2021 496,625 450,576
893,925 855,840
SOUTH KOREA – 0.2%
MagnaChip Semiconductor SA/MagnaChip
Semiconductor Finance Company, Conv. (USD)
3,500,000 Callable 10.50% due April 15, 2018 3,683,197 3,706,430
SPAIN – 0.4%
Cemex Espana Luxembourg (USD)
7,000,000 9.25% due May 12, 2020 6,749,957 5,434,909
SWEDEN – 0.2%
TVN Finance Corp. III AB (EUR)
2,000,000 7.875% due November 15, 2018 2,735,707 2,462,237
UNITED KINGDOM – 0.3%
Virgin Media Finance PLC (USD)
4,000,000 Callable 9.50% due August 15, 2016 4,356,767 4,571,943
UNITED STATES – 60.6%
ABI Escrow Corp. (USD)
8,896,000 10.25% due October 15, 2018 9,333,970 9,986,833
Advanced Micro Devices Inc. (USD)
12,300,000 8.125% due December 15, 2013 12,676,315 12,994,143
7,525,000 Callable 7.75% due August 01, 2020 7,529,784 7,873,045
AK Steel Holding Corporation (USD)
3,750,000 Callable 7.625% due May 15, 2020 3,662,068 3,589,331
Aleris International Inc. (USD)
4,000,000 Callable 7.625% due February 15, 2018 3,804,378 3,971,175
Algoma Acquisition Corp. (USD)
7,535,000 Callable 9.875% due June 15, 2015 7,025,804 6,598,362
7

December 31, 2011 Annual Financial Report
Ally Financial Inc. (USD)
2,300,000 4.50% due February 11, 2014 2,150,845 2,260,006
2,000,000 6.75% due December 01, 2014 2,024,672 2,054,258
3,000,000 8.30% due February 12, 2015 3,034,396 3,222,761
3,400,000 6.25% due December 01, 2017 3,153,874 3,339,493
12,550,000 7.50% due September 15, 2020 12,720,940 12,906,828
AMC Entertainment Inc. (USD)
2,000,000 Callable 8.75% due June 01, 2019 2,101,659 2,107,778
1,000,000 9.75% due December 01, 2020 1,003,900 967,338
American Greetings Corporation (USD)
1,500,000 Callable 7.375% due December 01, 2021 1,534,500 1,546,467
Appleton Papers Inc. (USD)
12,300,000 Callable 9.75% due June 15, 2014 14,371,370 10,708,426
1,500,000 10.50% due June 15, 2015 1,544,223 1,506,374
Apria Healthcare Group Inc. (USD)
5,000,000 Callable 11.25% due November 01, 2014 5,549,088 5,256,716
ArvinMeritor Inc. (USD)
5,788,000 Callable
8.125% due September 15, 2015 4,173,383 5,274,800
Ashtead Capital Inc. (USD)
1,000,000 Callable 9.00% due August 15, 2016 609,964 1,061,526
Baker & Taylor Inc. (USD)
6,000,000 Callable 11.50% due July 01, 2013 6,798,970 4,765,410
Belden Inc. (USD)
3,500,000 9.25% due June 15, 2019 3,892,581 3,804,437
Boise Cascade LLC (USD)
4,560,000 Callable 7.125% due October 15, 2014 4,492,003 4,614,200
The Bon-Ton Stores Inc. (USD)
20,750,000 Callable 10.25% due March 15, 2014 17,160,116 13,548,771

Broder Bros., Co. (USD)
5,659,296 12.00% due October 15, 2013 13,356,411 5,647,327
Brookstone Inc. (USD)
10,000,000 13.00% due October 15, 2014 10,216,000 8,133,272
Calpine Corporation (USD)
11,500,000 Callable 7.25% due October 15, 2017 11,680,734 12,295,369
1,500,000 7.875% due July 31, 2020 1,560,909 1,645,747
6,550,000 7.50% due February 15, 2021 6,650,376 7,136,405
Case New Holland Inc. (USD)
8,000,000 7.75% due September 01, 2013 8,579,148 8,655,125
9,985,000 Callable 7.25% due January 15, 2016 9,153,496 10,904,350
4,410,000 7.875% due December 01, 2017 4,753,935 5,074,245
CB Richard Ellis Services Inc. (USD)
2,000,000 11.625% due June 15, 2017 2,194,077 2,347,066
CCO Holdings LLC/
CCO Holdings Capital Corp. (USD)
1,000,000 7.375% due June 01, 2020 1,019,950 1,074,254
Cenveo Corporation (USD)
5,505,000 Callable 7.875% due December 01, 2013 6,060,720 4,400,291
2,000,000 8.875% due February 01, 2018 2,123,552 1,776,846
3,000,000 Callable 8.875% due February 01, 2018 2,731,422 2,665,269
Chiron Merger Sub Inc. (USD)
2,000,000 Callable 10.5% due November 01, 2018 1,973,387 1,995,770
Chrysler Group LLC/CG Co-Issuer Inc. (USD)
13,650,000 8.00% due June 15, 2019 12,852,588 12,717,688
Cincinnati Bell Inc. (USD)
4,000,000 Callable 7.00% due February 15, 2015 3,939,972 4,088,274
10,000,000 Callable 8.25% due October 15, 2017 9,852,655 10,233,413
7,000,000 8.375% due October 15, 2020 7,128,800 7,109,931
$ $

Par Value Description Cost Fair Value
TD High Yield Bond Fund
CIT Group Inc. (USD)
1,000,000 7.00% due May 01, 2015 957,099 1,020,287
12,000,000 Callable 7.00% due May 04, 2015 12,083,024 12,234,274
2,900,000 7.00% due May 01, 2016 2,914,295 2,952,925
7,900,000 Callable 7.00% due May 02, 2016 7,773,166 8,034,120
1,650,000 Callable 7.00% due May 02, 2017 1,602,440 1,678,012
CityCenter Holdings LLC/
CityCenter Finance Corp. (USD)
2,000,000 Callable 7.625% due January 15, 2016 1,978,500 2,087,413
Commercial Barge Line Company (USD)
645,000 12.50% due July 15, 2017 679,022 707,671
Constellation Brands Inc. (USD)
9,084,000 8.375% due December 15, 2014 9,889,514 10,382,881
3,940,000 Callable 7.25% due September 01, 2016 4,318,255 4,408,081
Crown Americas LLC/
Crown Americas Capital Corp. III (USD)
250,000 Callable 6.25% due February 01, 2021 248,213 266,018
Dana Holding Corporation (USD)
9,700,000 Callable 6.50% due February 15, 2019 9,448,107 9,975,795
DirectBuy Holdings Inc. (USD)
8,000,000 Callable 12.00% due February 01, 2017 7,724,692 1,955,040
Dole Food Company Inc. (USD)
2,794,000 Callable 8.00% due October 01, 2016 2,909,556 2,965,903
EarthLink Inc. (USD)
5,500,000 Callable 8.875% due May 15, 2019 5,151,150 5,152,345
Easton-Bell Sports Inc. (USD)
1,000,000 9.75% due December 01, 2012 1,105,363 1,109,893

EchoStar DBS Corporation (USD)
5,000,000 7.00% due October 01, 2013 5,249,995 5,434,909
28,660,000 Callable 6.625% due October 01, 2014 29,771,347 31,152,901
1,000,000 7.125% due February 01, 2016 1,071,425 1,097,164
Exide Technologies (USD)
3,000,000 Callable 8.625% due February 01, 2018 3,109,043 2,352,158
Ford Motor Credit Company LLC (USD)
15,000,000 8.00% due June 01, 2014 15,874,219 16,624,866
800,000 3.875% due January 15, 2015 815,694 811,553
Gannett Co. Inc. (USD)
6,500,000 8.75% due November 15, 2014 6,993,534 7,090,202
4,000,000 6.375% due September 01, 2015 4,027,100 4,134,095
2,500,000 10.00% due April 01, 2016 2,842,950 2,838,372
1,600,000 9.375% due November 15, 2017 1,784,869 1,767,682
850,000 Callable
7.125% due September 01, 2018 809,258 852,530
General Cable Corporation (USD)
17,140,000 Callable 7.125% due April 01, 2017 15,148,817 17,409,173
Goodman Networks Inc. (USD)
2,000,000 Callable 12.125% due July 01, 2018 1,926,347 1,944,858
The Goodyear Tire & Rubber Company (USD)
2,275,000 10.50% due May 15, 2016 2,566,858 2,553,962
11,800,000 8.25% due August 15, 2020 12,276,686 13,096,732
Great Lakes Dredge & Dock Corporation (USD)
500,000 Callable 7.375% due February 01, 2019 498,825 504,034
Harland Clarke Holdings Corp. (USD)
3,900,000 Callable 9.50% due May 15, 2015 3,959,199 2,898,958
HCA Inc. (USD)
5,900,000 Callable 8.50% due April 15, 2019 6,508,423 6,578,404
1,250,000 Callable 7.875% due February 15, 2020 1,267,306 1,374,638

The Hertz Corporation (EUR)
4,000,000 Callable 7.875% due January 01, 2014 4,764,976 5,287,344
$ $

Par Value Description Cost Fair Value
The accompanying notes are an integral part of these financial statements.
8
December 31, 2011 Annual Financial Report
The Hertz Corporation (USD)
1,628,000 Callable 8.875% due January 01, 2014 1,535,718 1,666,000
Hertz Holdings Netherlands BV (EUR)
2,000,000 Callable 8.50% due July 31, 2015 2,552,404 2,716,373
Host Hotels & Resorts, L.P. (USD)
600,000 Callable 6.375% due March 15, 2015 673,347 621,642
Houghton Mifflin Harcourt Publishing Company (USD)
3,000,000 Callable 10.50% due June 01, 2019 2,938,115 1,863,398
Icon Health & Fitness (USD)
5,000,000 11.875% due October 15, 2016 5,090,793 4,136,641
Interface Inc. (USD)
100,000 11.375% due November 01, 2013 105,084 113,026
International Lease Finance Corporation (USD)
8,000,000 6.375% due March 25, 2013 7,925,161 8,105,270
4,000,000 6.625% due November 15, 2013 3,976,949 4,052,635
400,000 6.50% due September 01, 2014 417,167 416,464
2,950,000 8.625% due September 15, 2015 2,919,739 3,078,933
6,600,000 5.75% due May 15, 2016 6,323,097 6,233,486
6,250,000 8.75% due March 15, 2017 6,672,237 6,554,984
International Wire Group Inc. (USD)
5,000,000 9.75% due April 15, 2015 4,945,710 5,123,070
Jabil Circuit Inc. (USD)

14,430,000 7.75% due July 15, 2016 15,683,273 16,383,082
1,700,000 Callable 8.25% due March 15, 2018 1,626,899 1,995,006
Jarden Corporation (USD)
7,650,000 Callable 7.50% due May 01, 2017 7,048,674 8,256,989
Lamar Media Corp. (USD)
1,500,000 Callable 6.625% due August 15, 2015 1,362,199 1,556,650
3,785,000 6.625% due August 15, 2015 3,653,810 3,921,523
1,250,000 7.875% due April 15, 2018 1,253,500 1,349,181
Landry’s Restaurants Inc. (USD)
5,500,000 11.625% due December 01, 2015 5,745,495 5,894,395
Levi Strauss & Co. (EUR)
2,350,000 7.75% due May 15, 2018 2,912,065 2,857,810
Levi Strauss & Co. (USD)
7,000,000 Callable 8.875% due April 01, 2016 6,926,828 7,412,860
13,200,000 7.625% due May 15, 2020 13,029,332 13,726,519
Limited Brands Inc. (USD)
2,000,000 Callable 6.625% due April 01, 2021 2,024,564 2,158,690
Lyondell Chemical Company (USD)
336,000 Callable 8.00% due November 01, 2017 378,333 373,779
The Manitowoc Company Inc. (USD)
18,000,000 Callable 7.125% due November 01, 2013 16,246,099 18,374,321
3,000,000 8.50% due November 01, 2020 2,988,784 3,218,943
Media General Inc. (USD)
8,000,000 Callable 11.75% due February 15, 2017 8,265,013 7,779,430
MEMC Electronic Materials Inc. (USD)
4,955,000 Callable 7.75% due April 01, 2019 4,621,964 3,645,322
MetroPCS Wireless Inc. (USD)
9,000,000 7.875% due September 01, 2018 9,340,398 9,290,258
12,483,000 6.625% due November 15, 2020 12,149,529 11,852,835
MGM Resorts International (USD)

500,000 Callable 11.125% due May 15, 2013 551,925 580,403
3,000,000 10.375% due May 15, 2014 3,334,183 3,490,052
Navistar International Corporation (USD)
500,000 Callable 8.25% due November 01, 2021 537,686 541,582
Neenah Foundry Company (USD)
980,000 15.00% due July 29, 2015 949,254 987,906
$ $

Par Value Description Cost Fair Value
TD High Yield Bond Fund
The New York Times Company (USD)
2,070,000 Callable 5.00% due March 15, 2015 1,597,849 2,086,700
Nextel Communications Inc. (USD)
4,950,000 Callable 6.875% due October 31, 2013 4,908,154 5,015,136
3,650,000 7.375% due August 01, 2015 3,480,418 3,400,700
NRG Energy Inc. (USD)
17,500,000 Callable 7.625% due January 15, 2018 17,496,396 17,819,375
13,700,000 7.625% due May 15, 2019 13,172,228 13,671,025
Pilgrim’s Pride Corporation (USD)
7,500,000 7.875% due December 15, 2018 7,389,570 7,178,663
Pregis Corporation (USD)
5,000,000 Callable 12.375% due October 15, 2013 5,807,231 4,862,144
Quiksilver Inc. (USD)
15,000,000 Callable 6.875% due April 15, 2015 12,984,117 14,185,495
Qwest Communications International Inc. (USD)
10,800,000 Callable 7.50% due February 15, 2014 11,229,691 11,038,559
R.R. Donnelley & Sons Company (USD)
11,450,000 Callable 8.60% due August 15, 2016 11,487,806 11,673,536
3,550,000 Callable 6.125% due January 15, 2017 3,130,220 3,361,752
3,170,000 7.25% due May 15, 2018 3,083,301 3,131,017

2,250,000 Callable 11.25% due February 01, 2019 2,646,746 2,497,258
1,200,000 7.625% due June 15, 2020 1,088,505 1,142,477
RailAmerica Inc. (USD)
1,600,000 9.25% due July 01, 2017 1,739,122 1,779,901
RathGibson Inc. (USD)
8,771,740 Callable 11.25% due February 15, 2014 10,076,321 893
Reichhold Industries Inc. (USD)
4,500,000 Callable 9.00% due August 15, 2014 5,015,783 2,428,526
Reliance Intermediate Holdings LP (USD)
2,000,000 Callable 9.50% due December 15, 2019 2,063,297 2,158,690
Reynolds Group Issuer Inc. (USD)
2,775,000 7.125% due April 15, 2019 2,680,070 2,875,093
750,000 9.00% due April 15, 2019 758,100 725,503
RSC Equipment Rental Inc. (USD)
3,244,000 Callable 9.50% due December 01, 2014 2,839,449 3,394,041
Sears Holdings Corporation (USD)
27,800,000 Callable 6.625% due October 15, 2018 26,131,718 21,513,586
Solo Cup Company (USD)
100,000 Callable 10.50% due November 01, 2013 112,842 103,352
7,695,000 Callable 8.50% due February 15, 2014 7,807,027 7,208,599
Spirit Aerosystems Inc. (USD)
750,000 7.50% due October 01, 2017 798,888 828,601
Sprint Nextel Corporation (USD)
13,305,000 Callable 6.00% due December 01, 2016 11,594,162 11,244,687
12,600,000 Callable 8.375% due August 15, 2017 12,199,624 11,498,843
3,250,000 9.00% due November 15, 2018 3,329,455 3,475,605
2,000,000 11.50% due November 15, 2021 1,985,553 1,958,441
Steel Dynamics Inc. (USD)
6,400,000 7.375% due November 01, 2012 6,455,128 6,785,618
1,553,000 6.75% due April 01, 2015 1,581,137 1,616,922

1,400,000 Callable 7.75% due April 15, 2016 1,447,035 1,486,136
1,000,000 7.625% due March 15, 2020 1,066,237 1,074,254
SunGard Data Systems Inc. (USD)
1,500,000 7.375% due November 15, 2018 1,411,139 1,563,650
Swift Services Holdings Inc. (USD)
4,000,000 Callable 10.00% due November 15, 2018 4,016,200 4,286,833
Terex Corporation (USD)
5,000,000 Callable 10.875% due June 01, 2016 5,329,541 5,625,831
10,000,000 Callable 8.00% due November 15, 2017 9,859,069 9,978,850
$ $

Par Value Description Cost Fair Value
The accompanying notes are an integral part of these financial statements.
9
December 31, 2011 Annual Financial Report
Ticketmaster Entertainment Inc. (USD)
10,735,000 Callable 10.75% due July 28, 2016 10,165,889 11,641,423
Tomkins LLC/Tomkins Inc. (USD)
7,349,000 Callable 9.00% due October 01, 2018 7,852,329 8,296,908
Tower Automotive Holdings USA LLC/
TA Holdings Finance Inc. (USD)
6,874,000 Callable
10.625% due September 01, 2017 7,324,498 7,034,448
TRW Automotive Inc. (EUR)
2,000,000 6.375% due March 15, 2014 2,709,623 2,696,546
TRW Automotive Inc. (USD)
1,600,000 Callable 7.00% due March 15, 2014 1,505,067 1,739,171
Tube City IMS Corporation (USD)
4,400,000 Callable 9.75% due February 01, 2015 4,386,634 4,525,103
United States Steel Corporation (USD)

3,750,000 Callable 5.65% due June 01, 2013 3,390,500 3,909,125
11,750,000 Callable 6.05% due June 01, 2017 10,912,807 11,426,038
11,550,000 Callable 7.00% due February 01, 2018 11,491,206 11,643,180
1,000,000 7.375% due April 01, 2020 1,005,078 992,794
Valassis Communications Inc. (USD)
6,100,000 Callable 6.625% due February 01, 2021 5,849,496 5,776,532
Valeant Pharmaceuticals International (USD)
6,900,000 Callable 6.50% due July 15, 2016 6,726,856 7,017,143
1,500,000 Callable 6.75% due August 15, 2021 1,486,500 1,473,917
250,000 Callable 7.25% due July 15, 2022 238,493 246,926
Vertis Inc. (USD)
3,563,505 Callable 13.50% due April 01, 2014 1,735,992 108,856
VICORP Restaurants Inc. (USD)
4,500,000 Callable 10.50% due April 15, 2011 5,604,996 458
Visteon Corporation (USD)
8,000,000 Callable 6.75% due April 15, 2019 7,485,135 8,125,635
Wendy’s/Arby’s Restaurants LLC (USD)
14,000,000 Callable 10.00% due July 15, 2016 15,346,186 15,681,050
WMG Acquisition Corp. (USD)
250,000 9.50% due June 15, 2016 274,580 276,200
928,222,524 900,211,516
Total Global Bonds 1,083,351,134 1,056,899,265
Transaction Costs (Note 2) (89) 0

TOTAL INVESTMENT
PORTFOLIO – 92.2%
1,482,258,542 1,368,256,932

SHORT-TERM
INVESTMENTS (CAD) – 2.9%

43,100,000 43,100,000

SHORT-TERM
INVESTMENTS (USD) – 1.8%
25,863,550 25,863,550

FOREIGN CURRENCIES – 0.0% 92,646 92,644

FORWARD CONTRACTS
(SCHEDULE 1) – 1.2%
0 18,432,618
OTHER NET ASSETS – 1.9% 28,730,341 28,724,859
TOTAL NET ASSETS – 100.0% $1,580,045,079 $1,484,470,603
$ $

Par Value Description Cost Fair Value
TD High Yield Bond Fund
The accompanying notes are an integral part of these financial statements.
10
December 31, 2011 Annual Financial Report
TD High Yield Bond Fund
Foreign Exchange Forward Contracts
(Schedule 1)
Canadian Value Canadian Value
Settlement Currency to be as at Currency to be as at Contract CAD
Date Delivered Dec. 31, 2011 Received Dec. 31, 2011 Price Appreciation
January 03, 2012 17,155,158 EUR $ 22,678,983 24,035,062 CAD $ 24,035,062 1.40104 $ 1,356,079
January 03, 2012 6,696,100 EUR 8,852,191 9,382,756 CAD 9,382,756 1.40123 530,565
January 03, 2012 126,512,939 USD 128,833,439 131,335,612 CAD 131,335,612 1.03812 2,502,173
January 03, 2012 101,212,494 USD 103,068,933 105,081,911 CAD 105,081,911 1.03809

to 1.04229 2,012,978
January 03, 2012 97,205,013 USD 98,987,948 100,915,324 CAD 100,915,324 1.02896
to 1.03826 1,927,376
January 03, 2012 83,792,000 USD 85,328,913 86,996,206 CAD 86,996,206 1.03824 1,667,293
January 03, 2012 57,996,770 USD 59,060,547 60,205,867 CAD 60,205,867 1.03809 1,145,320
January 03, 2012 38,351,196 USD 39,054,633 39,831,735 CAD 39,831,735 1.03825
to 1.04226 777,102
January 03, 2012 33,393,000 USD 34,005,494 34,684,306 CAD 34,684,306 1.03826
to 1.04229 678,812
January 17, 2012 534,000 EUR 706,235 720,366 CAD 720,366 1.34900 14,131
January 17, 2012 101,623,387 USD 103,520,086 104,670,056 CAD 104,670,056 1.02998 1,149,970
January 17, 2012 101,594,986 USD 103,491,154 104,551,162 CAD 104,551,162 1.01257
to 1.02996 1,060,008
January 17, 2012 83,279,000 USD 84,833,319 85,773,206 CAD 85,773,206 1.02995 939,887
January 17, 2012 76,603,494 USD 78,033,222 78,900,067 CAD 78,900,067 1.02998 866,845
January 17, 2012 72,097,500 USD 73,443,128 74,269,077 CAD 74,269,077 1.03012 825,949
January 17, 2012 64,743,526 USD 65,951,899 66,684,407 CAD 66,684,407 1.02998 732,508
January 17, 2012 12,731,000 USD 12,968,611 13,114,458 CAD 13,114,458 1.03012 145,847
January 17, 2012 12,261,440 USD 12,490,288 12,629,161 CAD 12,629,161 1.02999 138,873
January 31, 2012 17,155,158 EUR 22,697,888 22,937,913 CAD 22,937,913 1.33709 240,025
January 31, 2012 6,696,100 EUR 8,859,570 8,952,082 CAD 8,952,082 1.33691 92,512
January 31, 2012 126,512,939 USD 128,915,167 129,403,760 CAD 129,403,760 1.02285 488,593
January 31, 2012 101,212,494 USD 103,134,316 103,520,138 CAD 103,520,138 1.02280 385,822
January 31, 2012 97,205,013 USD 99,050,742 99,422,259 CAD 99,422,259 1.02281 371,517
January 31, 2012 83,792,000 USD 85,383,042 85,704,552 CAD 85,704,552 1.02283 321,510
January 31, 2012 57,996,770 USD 59,098,013 59,303,437 CAD 59,303,437 1.02253 205,424
January 31, 2012 38,351,196 USD 39,079,409 39,225,987 CAD 39,225,987 1.02281 146,578
January 31, 2012 33,393,000 USD 34,027,066 34,146,713 CAD 34,146,713 1.02257 119,647
$1,695,554,236 $1,716,397,580 $ 20,843,344
Canadian Value Canadian Value

Settlement Currency to be as at Currency to be as at Contract CAD
Date Delivered Dec. 31, 2011 Received Dec. 31, 2011 Price Depreciation
January 03, 2012 8,945,788 CAD $ 8,945,788 6,696,100 EUR $ 8,852,191 1.33597 $ (93,597)
January 03, 2012 34,125,976 CAD 34,125,976 33,393,000 USD 34,005,494 1.02195 (120,482)
January 03, 2012 39,202,900 CAD 39,202,900 38,351,196 USD 39,054,634 1.02221 (148,266)
January 03, 2012 59,269,799 CAD 59,269,799 57,996,770 USD 59,060,547 1.02195 (209,252)
January 03, 2012 22,918,987 CAD 22,918,987 17,155,158 EUR 22,678,983 1.33598 (240,004)
January 03, 2012 85,653,858 CAD 85,653,858 83,792,000 USD 85,328,913 1.02222 (324,945)
January 03, 2012 99,363,450 CAD 99,363,450 97,205,013 USD 98,987,947 1.02220 (375,503)
January 03, 2012 103,460,929 CAD 103,460,929 101,212,494 USD 103,068,933 1.02221 (391,996)
January 03, 2012 129,317,731 CAD 129,317,731 126,512,939 USD 128,833,439 1.02217 (484,292)
January 17, 2012 1,129,322 CAD 1,129,322 837,000 EUR 1,106,964 1.34925 (22,358)
January 17, 2012 121,000 EUR 160,027 159,996 CAD 159,996 1.32228 (31)
$ 583,548,767 $ 581,138,041 $ (2,410,726)
TOTAL NUMBER OF CONTRACTS: 43 NET APPRECIATION $ 18,432,618
The accompanying notes are an integral part of these financial statements.
11
December 31, 2011 Annual Financial Report
Financial Statements – Supplementary Schedules
(A) The Fund (Note 1)
(I) The Fund start date was June 29, 1998.
(II) TDAM is the manager, portfolio adviser and trustee of the Fund. TDIS is
the principal distributor of the Investor Series units of the Fund.
(III) The reporting and functional currency of the Fund is the Canadian dollar.
(B) Schedule of Net Assets per Unit and NAV per Unit (Note 2)
The Fund calculates NAV for all purposes other than financial statements
without giving effect to Section 3855 referred to in Note 2. This may result
in a difference between the net assets per unit and NAV per unit and the
differences, if any, are presented in the table below:
Per Unit as at

Dec. 31, 2011 Dec. 31, 2010
Series Net Assets NAV Net Assets NAV
Investor Series $ 5.92 $ 5.94 $ 6.19 $ 6.21
Institutional Series 6.61 6.64 6.91 6.94
Advisor Series 6.92 6.95 7.24 7.27
F-Series 6.52 6.54 6.81 6.84
H-Series 15.49 15.55 16.69 16.76
S-Series 15.40 15.47 16.61 16.68
T-Series 15.48 15.55 16.69 16.76
Q-Series 15.22 15.28 16.41 16.47
O-Series 9.48 9.53 9.91 9.95
(C) Schedule of Management Fees, Administration Fees
and Other Expenses (Note 4)
(I) MANAGEMENT FEES (%)
for the period ended December 31, 2011
Series Maximum Actual
Investor Series 1.75 1.65
Institutional Series 1.00 0.52
Advisor Series 1.75 1.65
F-Series 1.00 0.80
H-Series 1.75 1.65
S-Series 1.00 0.80
T-Series 1.75 1.65
Q-Series 1.00 0.52
O-Series 0.00 0.00
(II) ADMINISTRATION FEES
The Fund also pays TDAM an administration fee at an annual rate of 0.15%
of the NAV of each of the Investor, Advisor, H- and T-Series, calculated daily
and paid monthly.
(III) OTHER EXPENSES

Not applicable for the Fund.
(D) Schedule of Brokerage Commissions and Soft Dollars
(in 000s)
for the periods ended December 31, 2011 and 2010
(Note 2 and 6)
(I) BROKERAGE COMMISSIONS
2011 2010
Total Brokerage Commissions $ 15 $ 9
Paid to Related Parties 0 0
(II) SOFT DOLLARS
Not applicable for the Fund.
(E) Schedule of Tax Loss Carry Forwards
(in 000s)
as at December 31, 2011
(Note 7)
Capital Losses $ 226,820
Non-Capital Losses
(by year of expiry)
None
(F) Schedule of Securities Lending and Collateral Held
(in 000s)
as at December 31, 2011 and 2010
(Note 2)
2011 2010
Fair Value of Securities Lent $ 2,775 $ 14
Fair Value of Collateral Held 2,919 14
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 Statement of Investment Portfolio.
(G) Schedule of Financial Risk Management (Note 8)

(I) INTEREST RATE RISK
The table below summarizes the Fund’s exposure to interest rate risk as at
December 31, 2011 and 2010 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%, 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 difference could be material.
Term to Maturity
Total Exposure (in 000s)
Bonds

2011 2010
Less than 1 year $ 55,913 $ 15,691
1-5 years 644,178 688,742
5-10 years 600,476 452,324
> 10 years 5,772 12,520
Total $ 1,306,339 $ 1,169,277
Impact on Net Assets
(000s)
$ 47,551 $ 36,832
Impact on Net Assets
(%)
3.20 2.77
(II) CURRENCY RISK
The table below indicates the foreign currencies to which the Fund had
significant exposure as at December 31, 2011 and 2010 in Canadian dollar
terms, including the underlying principal amount of forward currency
contracts, if any. 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% in relation to all other currencies, with
all other variables held constant. In practice, the actual trading results
may differ from these approximate sensitivity analysis amounts and the
differences could be material.
Total Exposure* (in 000s) Impact on Net Assets (in 000s)
Currency 2011 2010 2011 2010
Euro $ 136 $ 246 $ 7 $ 12
United States Dollar 150,759 142,789 7,538 7,139
Total $ 150,895 $ 143,035 $ 7,545 $ 7,151
As Percentage of
Net Assets
(%)
10.16 10.74 0.51 0.54
* Includes both monetary and non-monetary instruments, where applicable.
n
TD High Yield Bond Fund
The accompanying notes are an integral part of these financial statements.
12
December 31, 2011 Annual Financial Report
(III) OTHER PRICE RISK
Not applicable for the Fund.
(IV) CREDIT RISK
The table below summarizes the debt instruments by credit ratings as at
December 31, 2011 and 2010.
Percentage of Percentage of
Total Bonds (%) Total Net Assets (%)
Credit Rating° 2011 2010

2011 2010

BBB 2.31 3.35 2.03 2.94
BB 33.76 32.95 29.71 28.93
B 52.18 49.64 45.92 43.58
CCC 9.99 12.67 8.80 11.12
CC 0.36 0.00 0.31 0.00
C 0.06 0.00 0.05 0.00
D 0.00 0.24 0.00 0.21
No Rating 1.34 1.15 1.18 1.01
Total 100.00 100.00 88.00 87.79
° 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 instru-
ments within the fair value hierarchy as at December 31, 2011 and 2010:
Level 1 Level 2 Level 3 Total
December 31, 2011
Common Shares $ 19,803 $ 17,700 $ 15,131 $ 52,634
Preferred Shares 0 6,167 1,550 7,717
Warrants 0 1,567 0 1,567
Short-Term Investments 0 68,964 0 68,964
Bonds 0 1,287,403 18,936 1,306,339
Forward Contracts 0 20,844 0 20,844
19,803 1,402,645 35,617 1,458,065
Forward Contracts 0 (2,411) 0 (2,411)
$ 19,803 $ 1,400,234 $ 35,617 $ 1,455,654
Equity positions with a fair value of $1,648 were transferred from Level 1
to Level 2 during the period as a result of decreased activity in the market
for those securities.
December 31, 2010
Common Shares $ 56,975 $ 1 $ 19,747 $ 76,723

Preferred Shares 0 7,994 850 8,844
Short-Term Investments 0 26,233 0 26,233
Bonds 0 1,164,863 4,414 1,169,277
Forward Contracts 0 25,912 0 25,912
56,975 1,225,003 25,011 1,306,989
Forward Contracts 0 (3,460) 0 (3,460)
$ 56,975 $ 1,221,543 $ 25,011 $ 1,303,529
Equity positions with a fair value of $1 were transferred from Level 1 to
Level 2 during the period as a result of decreased activity in the market for
those securities.
TD High Yield Bond Fund
(VI) RECONCILIATION OF LEVEL 3 FAIR VALUE MEASUREMENTS
(in 000s)
The tables below reconcile the Fund’s Level 3 fair value measurements
from December 31, 2010 to December 31, 2011 and December 31, 2009
to December 31, 2010:
Common
Shares Bonds Preferred
Balance at December 31, 2010 $ 19,747 $ 4,414 $ 850
Purchases 5,555 8,117 2,451
Sales (10,064) 0 0
Net Transfers In (Out) 1 1,929 0
Gains (Losses)
Net Realized on Sale of Investments 6,255 (3,768) 0
Net Change in Unrealized Appreciation/
Depreciation of Investments (6,363) 8,244 (1,751)
Balance at December 31, 2011 $ 15,131 $ 18,936 $ 1,550
Total change in unrealized appreciation/
depreciation for assets held at
December 31, 2011 $ (6,561) $ 0 $ (1,751)

Common
Shares Bonds Preferred
Balance at December 31, 2009 $ 748 $ 5,925 $ 907
Purchases 4,958 0 10
Sales 0 (6,329) 0
Net Transfers In (Out) 14,080 2,143 0
Gains (Losses)
Net Realized on Sale of Investments 0 3,780 0
Net Change in Unrealized Appreciation/
Depreciation of Investments (39) (1,105) (67)
Balance at December 31, 2010 $ 19,747 $ 4,414 $ 850
Total change in unrealized appreciation/
depreciation for assets held at
December 31, 2010 $ (39) $ (125) $ (67)
(VII) CONTRACTUAL MATURITIES ANALYSIS FOR FINANCIAL LIABILITIES
(in 000s)
The table below summarizes cash flows associated with the maturities
of the Fund’s financial liabilities as at December 31, 2011 and 2010:
Less than 3 months
2011 2010
Accounts payable and other liabilities $ 1,319 $ 2,252
Forward Contracts 2,411 3,460
$ 3,730 $ 5,712
Supplementary Schedules to Financial Statements (continued)
The accompanying notes are an integral part of these financial statements.
13
1. The Fund
The TD Mutual Fund Trusts (collectively, the “Funds” or individually, the “Fund”) are open-ended mutual funds established
under the laws of Ontario and are governed by the Amended, Consolidated and Restated Declarations of Trust dated July 25, 2011
(“Declarations of Trust”), as amended from time to time. The Fund may invest in other open-ended mutual funds.

TD Asset Management Inc. (“TDAM”) and TD Investment Services Inc. (“TDIS”) are wholly-owned subsidiaries of
The Toronto-Dominion Bank (the “Bank”).
The Fund is authorized to issue an unlimited number of units of multiple series that rank equally and are available for sale
under two separate simplified prospectuses, as applicable, one for the Investor Series, e-Series, Institutional Series, Premium
Series, O-Series, H-Series and Q-Series and the other for the Advisor Series, F-Series, T-Series and S-Series. In addition, units
of the D-Series are sold under a confidential Offering Memorandum. The various series that may be offered by the Fund are
as described below.
Investor Series: Offered to investors on a no-load basis.
e-Series: Offered on a no-load basis to investors who wish to complete their transactions electronically.
Institutional Series: Offered on a no-load basis to large investors such as group savings plans and others who make the
minimum investment, as determined by TDAM from time to time.
Premium Series: Offered on a no-load basis to large investors and others who make the required minimum investment,
as determined by TDAM from time to time.
O-Series: Offered on a no-load basis to large investors who make the required minimum investments,
as determined by TDAM, and have entered into O-Series agreements with TDAM.
H-Series: Offered on a no-load basis to investors who wish to receive a regular monthly cash flow from
the Fund. Monthly distributions will consist of net income, net realized capital gains and/or return
of capital.
Advisor Series: Offered to investors through registered brokers and dealers, with either a front-end, back-end
or low-load purchase option.
F-Series: Offered to investors, through fee-based brokers or financial planners and others, who pay an annual
fee to their dealers or financial advisors instead of transactional sales charges.
T-Series: Offered to investors through registered brokers and dealers, with either a front-end, back-end or
low-load purchase option, who wish to receive a regular monthly cash flow from the Fund. Monthly
distributions will consist of net income, net realized capital gains and/or return of capital.
S-Series: Offered to investors, through fee-based brokers or financial planners and others, who pay an annual
fee to their dealers or financial advisors instead of transactional sales charges and who wish to
receive a regular monthly cash flow from the Fund. Monthly distributions will consist of net income,
net realized capital gains, and/or return of capital.
D-Series: Offered on a no-load basis to Private Giving Foundation.

Q-Series: Offered to large investors such as group savings plans and others who make the required minimum
investment, as determined by TDAM from time to time, and who also wish to receive a regular
monthly cash flow from the Fund. Monthly distributions will consist of net income, net realized
capital gains and/or a return of capital.
Each individual series of units is sold under differing purchase options and may have higher or lower management fees,
reflecting the extent of the investment advice provided. The management fee rates for the Fund and its various series
are provided in section (C) of the Supplementary Schedules in the Financial Statements.
In the year a Fund or series is established, “period” represents inception to December 31; in all other cases “period”
represents the year ended December 31. For the Statement of Net Assets, “period” represents December 31, 2011 and
December 31, 2010 (unless the Fund was created during 2011). A Statement of Net Assets has only been presented in
the financial statements for any period end for which the Fund or series was in existence as at that date. The Fund start
date as indicated in section (A) of the Supplementary Schedules in the Financial Statements is the date the Fund
commenced operations or in the case of a series, the dates the series were first offered and not their inception dates.
n
Notes to Financial Statements
December 31, 2011 Annual Financial Report
14
2. Summary of Significant Accounting Policies
Basis of Presentation
These financial statements, prepared in accordance with Canadian
generally accepted accounting principles (“GAAP”), include estimates
and assumptions by management that affect the reported amounts
of assets, liabilities, income, expenses, gains and losses during the
reporting period. Actual results may differ from those estimates.
Net asset value (“NAV”) is the value of the total assets of a Fund less
the value of its total liabilities at a Valuation Date (as defined below)
determined in accordance with Part 14 of National Instrument 81-106 –
Investment Fund Continuous Disclosure for the purpose of processing
unitholder transactions. Net assets (“net assets”) are determined in
accordance with

Canadian Institute of Chartered Accountants (“CICA”)
Handbook
Section 3855, “
Financial Instruments – Recognition and
Measurement
” (“Section 3855”). Section 3855 requires the use of bid
prices for long positions and ask prices for short positions in the fair
valuation of investments, rather than the use of closing prices or mid
prices currently used for the purpose of determining NAV. For invest-
ments that are not traded in an active market, Section 3855 requires
the use of specific valuation techniques, rather than the use of valuation
techniques by virtue of general practice in the investment funds industry.
This may result in a difference between the net assets per series unit
and NAV per series unit. Comparison between net assets per unit
and NAV per unit, where applicable, is provided in section (B) of the
Supplementary Schedules in the Financial Statements.
The following is a summary of significant accounting policies followed
by the Fund in determining net assets for purposes of these financial
statements.
(I) VALUATION OF INVESTMENTS
Investments are deemed to be held for trading and therefore are
recorded at fair value, determined as follows:
(a) Securities listed on a recognized public securities exchange are
valued at their bid prices for long positions and ask prices for short
positions. Securities with no available bid or ask prices are valued at
their closing sale prices.
(b) Bid prices are not available for any underlying funds held by the
Fund since these investments are valued at the series’ NAV per unit
at the end of each Valuation Date (as defined below). Therefore,
the investments in the underlying funds are valued using the series’

NAV per unit.
(c) Securities not listed on any recognized public securities exchange
are valued in the same manner based on available public quotations
from recognized dealers in such securities.
(d) Securities for which market quotations are not readily available,
or whose fair values have been deemed to be materially different
from the security’s most recent market quotation, may be valued
by methods deemed by TDAM to represent fair value.
(e) TDAM uses fair value pricing when the market value of a security
held in the Fund is unavailable, unreliable or not considered to
reflect the current market value, and may determine another value
which it considers to be fair and reasonable using the services
of third-party valuation service providers or other means. Certain
securities of the Fund were fair valued on December 31, 2011
given that predetermined thresholds established for the fair value
pricing were above internally prescribed limits on that date or a
predetermined event occurred.
(f) Short-term debt instruments are valued at their bid quotations
received from recognized investment dealers. If no bid price is avail-
able, they are valued at their amortized cost, which approximates
fair value due to their short-term nature.
(g) Real return bonds are valued at their fair value, which is calculated
based on the bid price from available public quotations from recog-
nized dealers in real return bonds. Changes in the inflation factor
are reflected on the Statements of Investment Operations as part of
Interest Income.
(h) Mortgages are valued at their fair value using the Bank’s prevailing
rate of return on new mortgages of similar type and term. Mortgages
are purchased from the Bank and other related parties such as, the
Canada Trustco Mortgage Company and the Canada Trust Company.

In consideration of the services and facilities provided, the seller of
each mortgage receives a liquidity fee and for conventional uninsured
mortgages, a guarantee fee, where applicable. As applicable, refer
to section (C) of the Supplementary Schedules in the Financial
Statements for details of the fees. Both the liquidity fee and
guarantee fee are deferred and amortized over the remaining term
to maturity of the mortgages purchased.
(i) The Fund may use foreign exchange forward contracts to hedge
against or profit from fluctuations in foreign exchange rates. These
contracts are limited to the fair value of foreign securities owned by
the Fund and quoted in that currency. These contracts are valued at
the gain or loss that would arise as a result of closing the position
on the Valuation Date (as defined below). The unrealized gain or
loss is reflected in the Statements of Investment Operations as
Net Change in Unrealized Appreciation/Depreciation of Investments.
When the contracts are closed out, the net realized gain or loss
is reflected in the Statements of Investment Operations as part
of Foreign Exchange. As at December 31, 2011, all outstanding
contracts as listed in the Statement of Investment Portfolio are with
financial institutions whose short-term debt is rated A-1 or better
by Standard & Poor’s.
The Fund may also 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 at the gain or loss that
would arise as a result of closing the position on the Valuation Date
(as defined below). The unrealized gain or loss is reflected in the
Statements of Investment Operations as Net Change in Unrealized
Appreciation/Depreciation of Investments. When the contracts are
closed out, the net realized gain or loss is reflected in the Statements
of Investment Operations as part of Net Realized Gain (Loss) on Sale

of Investments.
n
Notes to Financial Statements
Annual Financial ReportDecember 31, 2011
15
(j) The Fund may purchase standardized, exchange-traded futures
contracts. The outstanding futures contracts as at December 31, 2011
are listed in the Statement of Investment Portfolio. Futures contracts
are valued at their bid prices at the close of business on the last
Valuation Date (as defined below) of the reporting period. Any
difference between the settlement value at the close of business on
the current Valuation Date and that of the previous Valuation Date
is settled in cash daily and recorded in the Statements of Investment
Operations as Derivatives Income (Loss). Any amounts receivable
(payable) from settlement of futures contracts are reflected in the
Statements of Net Assets as Futures Margin Receivable (Payable).
Short-term debt instruments and currency positions as indicated in
the Statement of Investment Portfolio have been segregated and are
held as margin against the futures contracts purchased by the Fund.
(k) Options contracts are valued at their bid and/or ask prices at the
close of business on the last Valuation Date (as defined below) of
the reporting period. Options contracts with no bid/ask prices
available are valued at their closing prices. The premium received/
paid on options written or purchased is included in the cost of the
options. The unrealized gain or loss is reflected in the Statements
of Investment Operations as part of Net Change in Unrealized
Appreciation/Depreciation of Investments. The realized gain or
loss on sale or expiry of options is reflected in the Statements of
Investment Operations as part of Net Realized Gain (Loss) on Sale
of Investments.

The change in net excess (shortfall) of the fair value of investments
(including unrealized gains and losses on foreign exchange) over
(under) the total average cost or amortized cost of the investments is
included as Net Change in Unrealized Appreciation/Depreciation of
Investments in the Statements of Investment Operations.
(II) OTHER ASSETS AND LIABILITIES
Interest receivable, dividends receivable, subscriptions receivable,
receivable for investment sales, futures margin receivable and other
net assets are designated as loans and receivables and recorded at cost
or amortized cost. Similarly, accrued liabilities, redemptions payable,
distributions payable, payable for investment purchases and other
liabilities are designated as other financial liabilities and recorded at
cost or amortized cost. Cost or amortized cost approximates fair value
for these assets and liabilities due to their short term nature.
(III) DISTRIBUTIONS FROM UNDERLYING FUNDS
Distributions received from any underlying funds out of interest, foreign
income and related withholding taxes, Canadian dividends and net
realized capital gains are recognized when declared.
(IV) TRANSLATION OF FOREIGN CURRENCIES
The fair value of investments and other assets and liabilities denomi -
nated in a foreign currency are translated into the reporting currency
at the rate of exchange which is current on the Valuation Date
(as defined below). Foreign exchange gains and losses on the sale of
investments and foreign currencies are included in Net Realized Gain
(Loss) on Sale of Investments. Unrealized foreign exchange gains and
losses on investments held are included in Net Change in Unrealized
Appreciation/Depreciation of Investments.
The Fund’s investment portfolio may consist of securities that are
traded in foreign markets. The proceeds on the sale of such securities
will be realized in the respective currency. Unhedged foreign currency

positions are subject to gains and losses due to fluctuations in the
respective exchange rates.
Purchases and sales of investments denominated in a foreign currency
and foreign currency dividend and interest income and expenses are
translated into the reporting currency at the rate of exchange on the
respective date of the transaction.
(V) SECURITIES LENDING AND COLLATERAL HELD
The Fund may engage in securities lending pursuant to the terms of an
agreement which includes restrictions as set out in Canadian securities
legislation. The income earned from securities lending, if applicable, is
included in the Statements of Investment Operations and is recognized
when earned. The fair value of the securities loaned and value of
collateral held is determined daily. Aggregate securities on loan and
related collateral held by the Fund, if applicable, are provided in
section (F) of the Supplementary Schedules in the Financial Statements.
(VI) INVESTMENT TRANSACTIONS, INCOME, EXPENSES
AND TRANSACTION COSTS
The cost of investments represents the amount paid for each security,
and is determined on an average cost basis or on an amortized cost
basis, where noted excluding transaction costs. Investment transactions
are accounted for as of the trade date. Interest income and expenses are
accrued daily and dividend income is recognized on the ex-dividend date.
Realized and unrealized gains and losses from investment transactions
are calculated on an average cost basis excluding brokerage commissions
and other trading expenses. Expenses are accrued on a daily basis, and
are accrued separately for each series, while income, gains and losses
are allocated to each series based on their respective NAV.
Transaction costs, such as brokerage commissions, incurred in the
purchase and sale of securities by the Fund are recognized in the
Statements of Investment Operations in the period incurred.

Commission paid on securities transactions by the Fund, where
applicable, is provided in section (D) of the Supplementary Schedules
in the Financial Statements.
No transaction costs are incurred when the Fund invests in underlying
funds. However, the underlying funds’ investments may be subject to
transaction costs and therefore the Fund may indirectly incur these
transaction costs.
n
Notes to Financial Statements
December 31, 2011 Annual Financial Report
16
(VII) INCREASE (DECREASE) IN NET ASSETS FROM
INVESTMENT OPERATIONS PER UNIT
The Increase (Decrease) in Net Assets from Investment Operations Per
Unit reported in the Statements of Investment Operations for the period
is calculated by aggregating each valuation day’s Increase (Decrease) in
Net Assets from Investment Operations attributed to the series of units
divided by the number of that series units outstanding on that date.
(VIII) VALUATION OF FUND UNITS
TDAM usually calculates the NAV per series unit for the Fund on
each day that the Toronto Stock Exchange is open for trading. Each
day on which a NAV is calculated is referred to as a valuation date
(“Valuation Date”).
A separate NAV is calculated for each series of units of the Fund by
taking the series’ proportionate share of the Fund’s common assets
less that series’ proportionate share of the Fund’s common liabilities
and deducting from this amount all liabilities that relate solely to that
specific series. The NAV per series unit is determined by dividing the
NAV of each series of the Fund by the total number of units of that
series outstanding.

The net assets per series unit is determined by dividing the net assets
of each series of a Fund by the total number of units of that series
outstanding.
(IX) REPURCHASE AND REVERSE REPURCHASE AGREEMENTS
The Fund may enter into repurchase transactions and reverse repurchase
transactions. A repurchase transaction is where a Fund sells a security
that it owns to a party for cash and agrees to buy the same security
back from the same party at a specified price on an agreed future date.
In a reverse repurchase transaction, the Fund buys a security at one price
from a third party and agrees to sell the same security back to the same
party at a specified price on an agreed future date and the difference is
reported as Income from Reverse Repurchase Agreement.
The risk with these types of transactions is that the other party may
default under the agreement or go bankrupt. These risks are reduced
by requiring the other party to provide collateral to the Fund. The value
of the collateral has to be at least 102 percent of the market value
of the security. Details of reverse repurchase agreements held by the
Fund at period end, where applicable, are provided in the Statement
of Investment Portfolio.
(X) CREDIT RISK AND THE FAIR VALUE OF FINANCIAL ASSETS
AND FINANCIAL LIABILITIES
The Fund’s own credit risk (in the case of financial liabilities) and a
counter-party’s credit risk (in the case of financial assets) are considered,
where applicable, in determining the fair value of financial assets and
financial liabilities, including derivative instruments.
Future Accounting Change – Transition to International
Financial Reporting Standards (“IFRS”)
As previously confirmed by the Canadian Accounting Standards Board
(“AcSB”), most Canadian publicly accountable entities adopted all IFRS,
as published by the International Accounting Standards Board (“IASB”),

on January 1, 2011. However, the AcSB had initially allowed most
investment funds to defer adoption of IFRS until fiscal years beginning
on or after January 1, 2013. At its December 12, 2011 meeting, the
AcSB decided to extend the deferral of mandatory adoption of IFRS
for Investment Companies and Segregated Accounts of Life Insurance
Enterprises to 2014. The decision was in response to the possibility
that the IASB may not complete its Investment Entities project
before January 1, 2013. The AcSB expects to issue the amendment in
March 2012. Accordingly, the Fund will adopt IFRS for the fiscal period
beginning January 1, 2014 and will issue its initial financial statements
in accordance with IFRS, including comparative financial information,
for the interim period ending June 30, 2014.
Management has been monitoring developments in the IFRS conversion
program and has been assessing the likely impacts on implementation
decisions, internal controls, information systems and training. In May
2011, the IASB issued IFRS 13
Fair Value Measurement
, which defines
fair value, sets out a single IFRS framework for measuring fair value
and requires disclosure about fair value measurements. It only applies
when other IFRSs require or permit fair value measurement. If an asset
or a liability measured at fair value has a bid price and an ask price, it
requires valuation to be based on a price within the bid-ask spread that
is most representative of fair value. It allows the use of mid-market
pricing or other pricing conventions that are used by market participants
as a practical expedient for fair value measurements within a bid-ask
spread. This may result in elimination of the differences between the net
assets per series unit and NAV per series unit at the financial statements
reporting dates.
Based on management’s current assessment of the differences between

Canadian GAAP and IFRS, other than the impact due to IFRS 13 noted
above, it is not expected that there would be any other impact on the
Fund’s NAV per series unit or net assets per series unit. Management has
presently determined that the impact of IFRS to the financial statements
would be otherwise limited to additional note disclosures and potential
modifications to presentation including unitholders’ equity. However, this
present determination is subject to change resulting from the issuance of
new standards or new interpretations of existing standards.
n
Notes to Financial Statements
Annual Financial ReportDecember 31, 2011
17
3. Unitholders’ Equity
Units of the Fund are redeemable at the option of the unitholder in
accordance with the provisions of the Declarations of Trust. Units of
the Fund are issued or redeemed on a daily basis at the NAV per series
unit next determined after the purchase order or redemption request,
respectively, is received by TDAM. Purchases and redemptions include
units exchanged from one series to another series within a Fund.
Units issued and outstanding represent the capital of the Fund. The Fund
does not have any specific capital requirements on the subscription and
redemption of units, other than minimum subscription require ments.
Changes in the Fund’s capital during the period are reflected in the
Statements of Changes in Net Assets. TDAM is responsible for managing
the capital of the Fund in accordance with the Fund’s investment
objectives and for managing liquidity in order to meet redemption
requests as discussed in Note 8.
4. Management Fees, Administration Fees
and Other Expenses
(I) In consideration for management services and investment advice

provided, TDAM is entitled to a management fee which is payable by
the Fund. The management fee, exclusive of goods and services tax/
harmonized sales tax (“GST/HST”), is calculated on a daily basis for each
series based on the NAV of that series of the Fund and paid monthly. No
management fee or fund expenses are charged with respect to O-Series
units, however investors in O-Series units may be charged a negotiated
administration fee directly by TDAM.
The maximum annual management fee, exclusive of GST/HST, is the fee
that can be charged to each series of the Fund according to the simpli-
fied prospectus, a portion of which may not be charged at the discretion
of TDAM. The actual management fee is the annualized fee that was
charged to each series of the Fund for the period. Actual and maximum
management fees for each series of the Fund are provided in section (C)
of the Supplementary Schedules in the Financial Statements.
(II) In consideration for paying certain operating expenses TDAM receives
a specified administration fee for the Investor Series, Advisor Series,
H-Series and T-Series. The administration fee, exclusive of GST/HST, is
calculated on a daily basis for each series based on the NAV of that
series of the Fund and paid monthly. Annual administration fee for the
series of the Fund, where applicable, is provided in section (C) of the
Supplementary Schedules in the Financial Statements.
(III) Securityholder reporting costs, custodian, legal, filing and audit
fees are TDAM expenses except as noted.
TDAM pays the Fund’s operating expenses (including for services provid-
ed by TDAM or affiliates of TDAM), other than expenses associated with
taxes, borrowing, the Fund’s Independent Review Committee (“IRC”),
compliance with any new governmental and regulatory requirements,
or new types of costs or expenses.
5. Other Related Party Transactions
TDAM is responsible for management of the Fund’s investment portfolio,

including the making of decisions relating to the investment of the
Fund’s assets. TDAM has established an IRC for the Fund. The IRC acts
as an impartial and independent committee to review and provide
approvals respecting certain transactions in which TDAM may have
conflicts of interest. The IRC has approved standing instructions to permit
the Fund and/or any underlying funds managed by TDAM to enter into
the following securities transactions:
(a) trades in securities of the Bank or any affiliate or associate thereof;
(b) investments in the securities of an issuer where TD Securities Inc.,
TD Waterhouse Canada Inc., or any other affiliate of TDAM
(“Related Dealer”) acted as an underwriter during the distribution
of such securities and the 60-day period following the completion
of the distribution of the underwritten securities;
(c) purchases or sales of securities of an issuer from or to another invest-
ment fund or discretionary managed account managed by TDAM; and
(d) purchases of securities from or sales of securities to a Related Dealer,
where it acted as principal.
The standing instructions require that securities transactions with related
parties conducted by TDAM (i) are free from any influence by an entity
related to TDAM without taking into account any consideration relevant
to an entity related to TDAM; (ii) represent the business judgment of
TDAM uninfluenced by considerations other than the best interests of the
Fund and/or underlying funds; (iii) comply with the applicable policies
and procedures of TDAM; and (iv) achieve a fair and reasonable result for
the Fund and/or underlying funds.
6. Brokerage Commissions and Soft Dollars
Brokerage commissions (including other transaction costs) paid on
securities transactions and amounts paid to related parties of the Bank
for brokerage services provided to the Fund for the period ended
December 31, where applicable, are disclosed in section (D) of the

Supplementary Schedules in the Financial Statements.
Client brokerage commissions are used as payment for order execution
services or research services. The portfolio advisers or TDAM may select
brokers including its affiliates, who charge a commission in excess of
that charged by other brokers (“soft dollars”) if they determine in good
faith that the commission is reasonable in relation to the order execution
and research services utilized.
For fixed income or treasury securities traded in the over the counter
markets where client brokerage commissions are not charged, soft
dollars or client brokerage commissions are not generated. For equities
or other securities where client brokerage commissions are charged,
the soft dollar portion of the amount paid or payable for goods and
services other than order execution for the Fund is not generally
ascertainable. Any ascertainable soft dollar value received as a per -
centage of total brokerage commissions paid under the soft dollar
arrangement entered into by the portfolio advisers or TDAM, where
applicable, is disclosed in section (D) of the Supplementary Schedules
in the Financial Statements.
n
Notes to Financial Statements
December 31, 2011 Annual Financial Report
18
7. Tax Status
The Fund qualifies, or intends to qualify if launched during the current
period, as a mutual fund trust under the
Income Tax Act
(Canada). All
or substantially all of the net income for tax purposes and sufficient
net capital gains realized in any period are distributed to unitholders
such that no income tax is payable by the Fund.

The Fund’s capital and/or non-capital losses, where applicable, are
provided in section (E) of the Supplementary Schedules in the Financial
Statements. Capital losses have no expiry. Non-capital losses can be
carried forward for up to twenty years. The tax benefit of the capital and
non-capital losses has not been reflected in the Financial Statements as
a Future Income Tax Asset.
8. Financial Risk Management
(A) Financial Risk Factors
The Fund’s investment activities may expose it to a variety of financial
risks: market risk (including interest rate risk, currency risk, and other
price risk), credit risk and liquidity risk.
(I) INVESTMENTS
TDAM seeks to reduce financial risks by employing experienced portfolio
managers, who invest within the limits as outlined in the Fund’s invest-
ment objectives and investment strategies and applicable TDAM policies
and procedures (collectively referred to as the “Investment Restrictions”).
Investment Restrictions are designed for the Fund’s exposure to be
prudently diversified across geography, sector and issuer, as applicable.
TDAM Risk Management uses a compliance monitoring system to inde-
pendently monitor the Fund’s Investment Restrictions and implements
an escalation process for exceptions, where warranted.
TDAM Risk Management conducts regular reviews of the Fund’s
exposure using detailed risk reports generated by third party software
and, where appropriate holds meetings with the TDAM portfolio
managers to discuss portfolio positioning and risk reports. In addition,
TDAM Risk Management performs on-site due diligence visits to third-
party sub-advisers of the Fund, where applicable. The TDAM Investment
Performance Oversight Committee meets as required to review manage -
ment style, processes, and fund statistics, including performance and
levels of risk.

(II) INVESTMENTS IN UNDERLYING FUNDS
If the Fund invests in underlying mutual funds, TDAM seeks to reduce
financial risks by diversifying investments across the three main asset
classes: money market investments for safety, bonds for income and
equity investments for growth. Since different types of investments tend
to move independ ently from one another, positive performance in one
asset class can help offset negative performance in another, thereby
reducing volatility and overall risk in the long-term. The Fund is managed
in accordance with its investment objectives, generally within specific
asset class ranges as set out in the Fund’s simplified prospectus. The
Fund follows a long-term strategic asset allocation plan, which involves
setting an asset allocation policy, selecting investments for each asset
class, and periodically rebalancing the asset allocation of the Fund in
accordance with its investment objectives. In addition, TDAM portfolio
advisers also apply active asset allocation for the Fund which
incorporates its short- to medium-term view of asset classes.
Asset Allocation
This first step involves diversifying portfolio investments among several
different investment categories or asset classes with the aim to optimally
match the investment objectives and risk tolerances of the Fund with
reasonable expectations for capital market behaviour. The Fund uses
either strategic asset allocation where the time horizon of an investment
in the Fund is assumed to be long-term in nature or active asset alloca-
tion to take advantage of opportunities in the short- to mid-term. Asset
mix changes are usually in response to one or more of: changes in the
risk profile or return objective; altered expectations about one or several
asset classes; or the emergence of a new class of assets not previously
included. TDAM portfolio advisers conduct a comprehensive analysis of
the long-term risk and return relationships for the key asset categories –
broadly defined as equity, fixed income and cash or cash equivalents.

They then determine the optimal mix of these categories in order to try
to maximize the potential returns given the risk tolerance of the Fund.
Fund Selection
The underlying funds are selected based on the strategic asset allocation
decisions made in the asset allocation phase. Underlying funds are eval -
uated using both quantitative and qualitative processes. On the quanti -
tative side, the TDAM portfolio advisers look for performance consistency
and attractive risk-adjusted returns. This is complemented with qualita -
tive analysis where TDAM portfolio advisers look for consistent and
credible investment processes performed by quality management teams.
Portfolio Review
The Fund is adjusted or rebalanced on a regular basis to keep its asset
mix in line with their investment objectives. In addition, the TDAM
portfolio advisers regularly monitor the markets and economic
conditions, existing asset allocations, and the individual underlying
funds. The selection of individual underlying funds and the weightings
of the underlying funds within the Fund will be adjusted with the aim
to increase potential returns and/or reduce risk.
(III) INTEREST RATE RISK
Interest rate risk arises from the possibility that changes in interest rates
will affect the future cash flows or the fair values of interest-bearing
investments. The Fund’s exposure to interest rate risk is concentrated
in its investments in debt securities (such as bonds and debentures)
and interest rate derivative instruments, if any. Short-term investments,
currencies, and other assets and liabilities are short-term in nature
and/or non-interest bearing and not subject to significant amounts of
risk due to fluctuations in the prevailing levels of market interest rates.
If the Fund invests in underlying funds, it is exposed to indirect interest
rate risk to the extent of the interest-bearing financial instruments held
by the underlying mutual funds. The Fund invests in securities that are

short-term in nature and is not subject to significant amounts of risk
due to fluctuations in the prevailing levels of market interest rates
unless there are very significant interest rate shocks. The Fund’s exposure
to interest rate risk, where applicable, is disclosed in section (G) of the
Supplementary Schedules in the Financial Statements.
Where applicable, the portfolio manager reviews the Fund’s overall
interest rate sensitivity as part of the investment management process.
n
Notes to Financial Statements
Annual Financial ReportDecember 31, 2011
19
(IV) CURRENCY RISK
Currency risk is the risk that the value of financial instruments will
fluctuate due to changes in foreign exchange rates. The Fund may hold
assets denominated in currencies other than their functional currency.
The Fund is therefore exposed to currency risk, as the value of the
securities denominated in other currencies (indicated in the Fund’s
Statement of Investment Portfolio) will fluctuate due to changes in the
foreign exchange rates of those currencies in relation to the Fund’s
functional currency.
The Fund may enter into foreign exchange forward contracts for hedging
purposes to reduce its foreign currency exposure or to establish exposure
to foreign currencies. The Fund that invests in underlying mutual funds is
exposed to indirect currency risk in the event that the underlying mutual
funds invest in financial instruments that are denominated in a currency
other than the underlying mutual funds’ functional currency. A Fund’s
exposure to currency risk, where significant, is disclosed in section (G)
of the Supplementary Schedules in the Financial Statements.
Where applicable, the portfolio manager reviews the Fund’s currency
positions as part of the investment management process.

(V) OTHER PRICE RISK
Other price risk is the risk that securities will fluctuate in value because
of changes in market prices (other than those arising from interest
rate risk or currency risk). All securities investments present a risk of
loss of capital. TDAM seeks to reduce this risk through its Investment
Restrictions. Except for written options and equities sold short, the
maximum risk resulting from financial instruments is the fair value of
the financial instruments. Possible losses from written options and
equities sold short can be unlimited. The Fund’s exposure to other price
risk, where applicable, is disclosed in section (G) of the Supplementary
Schedules in the Financial Statements. If the Fund invests in underlying
funds, it is exposed to indirect other price risk in the event that the
underlying mutual funds invest in securities that trade on a market.
(VI) CREDIT RISK
Credit risk is the risk that one party to a financial instrument will cause
a financial loss to the other party by failing to discharge an obligation.
The Fund’s main credit risk concentration is in debt securities and deriva-
tive instruments it holds. The Fund’s exposure to credit risk is the risk that
an issuer of debt securities or a counterparty to derivative instruments
will be unable to pay amounts in full when due. All trans actions in listed
securities are settled or paid for upon delivery using approved brokers.
The risk of default with a broker is considered minimal, as delivery of
securities sold is only made once the broker has received payment.
Payment is made on a purchase once the securities have been received
by the broker. The trade will fail if either party fails to meet its obligation.
The underlying mutual funds, where applicable, are exposed to indirect
credit risk in the event that the underlying mutual funds invest in debt
securities and derivatives.
The credit risk from the use of counterparties for forward derivative con-
tracts is minimized by: (1) using counterparties with a minimum credit

rating of A by Standard & Poor’s or an equivalent rating from another
recognized credit rating agency; (2) limiting the term of the forward con-
tracts to a maximum of 365 days; and, (3) limiting the mark-to-market
exposure to any one counterparty to 10 percent of the portfolio value.
The Fund may engage in securities lending transactions with certain
borrowers. The value of cash or securities held as collateral by the Fund
in connection with these transaction is at least 102 percent of the fair
value of the securities loaned. The collateral and loaned securities are
marked to market on each business day.
The Fund’s investments in short-term notes and debt instruments, by
ratings categories, where applicable, is disclosed in section (G) of the
Supplementary Schedules in the Financial Statements.
Where applicable, the portfolio manager reviews the Fund’s credit
positions as part of the investment management process.
(VII) LIQUIDITY RISK
Liquidity risk is defined as the risk that a fund may not be able to settle
or meet its obligations on time or at a reasonable price. The Fund is
exposed to daily cash redemptions of redeemable units. Units are
redeemable on demand at the then current NAV per series unit at the
option of the unitholder. As required by applicable securities legislation,
the Fund maintains at least 85 percent of its assets in liquid invest ments
(i.e. investments that are traded in active markets and can be readily
disposed of). In addition, the Fund retains sufficient cash and cash
equivalents to maintain liquidity, and have the ability to borrow up
to 5 percent of its NAV for the purpose of funding redemptions.
Contractual maturities analysis for the Fund’s financial liabilities, where
applicable, is disclosed in section (G) of the Supplementary Schedules
in the Financial Statements.
The Fund may hold securities that are not traded in an active market
and may be illiquid.

Within the limits of the Investment Restrictions, the Fund may, from time
to time, invest in derivative contracts which are traded over the counter
(i.e. not traded in an organized market) and may be illiquid. All such
positions have been disclosed in the Statements of Investment Portfolio.
n
Notes to Financial Statements
December 31, 2011 Annual Financial Report
20
(B) Classification of Fair Value Measurement
The Fund classifies fair value measurements within a hierarchy that
prioritizes the inputs to fair value measurement. The fair value hierarchy
has the following three levels:
Level 1
Quoted (unadjusted) prices in active markets for identical
assets or liabilities;
Level 2
Inputs other than quoted prices that are observable for the
asset or liability either directly (that is, as prices) or indirectly
(that is, derived from prices); and
Level 3
Inputs that are not based on observable market data (that is,
unobservable inputs).
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.
The classification of the Fund’s financial instruments within the fair
value hierarchy as at December 31, 2011 and 2010 and any transfers
between levels during the period as a result of changes in the lowest
level input that is significant to the fair value measurement are
disclosed in section (G) of the Supplementary Schedules in the Financial
Statements, where applicable.
9. Prior Period Comparatives
Certain comparative figures have been reclassified to conform to the
December 31, 2011 financial statement presentation. None of these
reclassifications had an impact on the NAV or NAV per series unit
reported for the prior period.
10. Other Reports
If applicable, the most recent financial statements of the underlying
funds are available, without charge, by writing to:
TD Mutual Funds
c/o TD Asset Management Inc.
P.O. Box 100
66 Wellington Street West
Toronto-Dominion Bank Tower
Toronto-Dominion Centre
Toronto, Ontario
M5K 1G8

Currency codes used throughout the report:

Currency Code Description
AUD Australian Dollar
CAD Canadian Dollar
CHF Swiss Franc
DKK Danish Krone
EUR Euro
GBP British Pound
HKD Hong Kong Dollar
JPY Japanese Yen
MXN Mexican Nuevo Peso
NOK Norwegian Krone
NZD New Zealand Dollar
SEK Swedish Krona
SGD Singapore Dollar
USD United States Dollar
n
Notes to Financial Statements
Annual Financial ReportDecember 31, 2011
21
December 31, 2011 Annual Financial Report
TD Mutual Funds are managed by TD Asset Management Inc. (TDAM), a wholly-owned subsidiary of The Toronto-Dominion Bank
(TD Bank) and are available through authorized dealers. Commissions, trailing commissions, management fees and expenses all may
be associated with mutual fund investments. Please read the prospectus, which contains detailed investment information, before
investing. Mutual funds are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer
and are not guaranteed or insured. Their values change frequently. There can be no assurances that a money market fund will be
able to maintain its net asset value per unit at a constant amount or that the full amount of your investment will be returned to you.
Past performance may not be repeated.
All trademarks are the property of their respective owners.

®/
The TD logo and other trade-marks are the property of The Toronto-Dominion Bank or a wholly-owned subsidiary,
in Canada and/or other countries.
22