TD Science & Technology Fund 525508 (03/16) TD Mutual Funds for the period ended This contains financial highlights, but does not contain the complete annual financial statements of the investment fund. You can get a copy of the annual financial statements at your request, at no cost, by calling 1-800-386-3757, by writing to us at TD Asset Management Inc., P.O. Box 100, 66 Wellington Street West, TD Bank Tower, Toronto-Dominion Centre, Toronto, Ontario, M5K 1G8, by e-mail to td.mutualfunds@td.com, or by visiting our website at tdassetmanagement.com or the SEDAR website at sedar.com Securityholders may also contact us or visit our website to get a copy of the investment fund s interim financial report, proxy voting policies and procedures, proxy voting disclosure record, or quarterly portfolio disclosure at no cost.
ntd Science & Technology Fund Management Discussion of Fund Performance Investment Objectives and Strategies The investment objective of the TD Science & Technology Fund ( Fund ) is to achieve long-term capital appreciation by investing primarily in equity securities of companies that are engaged in the research, develop ment, production, or distribution of products or services related to science and technology. In seeking to achieve this objective, the Fund invests at least 65 percent of total assets in common stocks with selection of the securities generally reflecting a growth approach. Holdings can range from small, unseasoned companies developing new technologies to blue chip firms with established track records of developing and marketing technology. Risk The risks of investing in the Fund remain as outlined in the simplified prospectus. Results of Operations The Investor Series units of the Fund returned 40.9 percent* for the year ended ( Reporting Period ), versus 23.8 percent for the Fund s product benchmark, the MSCI All Country World Information Technology Index (Net Dividend, C$) ( MSCI AC World Information Technology Index (ND, C$) ). Returns for other series of the Fund may vary, largely due to differences in fees and expenses. Unlike the benchmark, the Fund s return is quoted after the deduction of fees and expenses. Market Update Major U.S. stock indices were narrowly mixed in the Reporting Period. Markets benefited from steady economic and employment growth early in the Reporting Period, followed by a sharp fall in global equities during the summer in response to a plunge in Chinese stocks. While emerging markets generally remained weak in the final months of the Reporting Period, equity markets in developed countries rebounded amid hopes for additional stimulus measures in Europe and Asia. Over the Reporting Period, information technology companies strongly outperformed the broader market. Key Contributors/Detractors At the overall sector level, allocation effects drove positive relative returns, with stock selection also contributing. A significant position in the media industry along with strong stock selections led relative performance for the Reporting Period. Amazon.com continues to reinvest in its business to strengthen its leadership in both e-commerce and cloud computing. New disclosures for Amazon Web Services highlighted margins that were higher than expected, helping to remove uncertainty around this business segment. Amazon.com is also showing improvement in its retail margins, while growing its presence in the cloud computing and infrastructure business. Ctrip.com International is China s largest online travel agent. Recently Baidu exchanged shares of travel search engine Qunar for Ctrip.com, effectively giving Ctrip.com control of its competitor s board and a roughly 80 percent market share in the Chinese travel industry. Internet subscription service Netflix continues to grow subscribers at a strong pace, particularly in overseas markets. The Fund s stock selection in the telecommunication services sector were also effective, though some of the gain was offset by a substantial position in the industry. Telecommunication services company Crown Castle International is a leading independent owner, operator, and developer of broadcast and wireless communication sites in North America. Despite market fears that larger wireless brands like T-Mobile and Sprint might decommission some towers, this has not happened. Instead, rising competition between major carriers has centered around network quality, which benefits tower companies like Crown Castle International. On the negative side, limited exposure to the information technology services sector detracted from performance. This sector remains challenged, especially in software implementation, as companies increasingly move toward cloud-based software. These require less implementation work than traditional large, complex installations that needed to be done at each customer s location. During the Reporting Period, the Fund meaningfully decreased exposure in software companies as relative valuation within the space no longer offered attractive options. This move to decrease software holdings resulted in a corresponding decrease in the Fund s exposure to North America. Within the software sector, the Portfolio Adviser prefers companies with unique intellectual property and strong market positions. In addition, the Portfolio Adviser notably increased the Fund s position in semiconductor companies, several of which are located in developed Europe. The Portfolio Adviser continues to believe some semiconductor companies are well positioned to benefit from increasing uses in industrials and the global adoption of mobile devices in the long term. Assets The Advisor Series and F-Series units of the Fund experienced a significant increase in assets due to investor purchase activity. * This section compares the returns relative to the Fund s product benchmark. See the Past Performance section for a comparison of the Fund s performance relative to the general market index. 1
Recent Developments The Portfolio Adviser is more optimistic than many about the global economic and market outlook in 2016, and the recent sharp pullback in stock prices has renewed the valuation appeal of many high-growth technology companies. The U.S. economy appears fundamentally healthy, and Europe is engaging in massive quantitative easing that is reducing the value of the euro and increasing competitiveness. Although China s struggles have dominated market sentiment recently, the Portfolio Adviser is optimistic that the country is successfully managing the transition to a consumer-focused economy. Related Party Transactions Affiliates of TD Asset Management Inc. ( TDAM ) may earn fees and spreads in connection with various services provided to, or transactions with, the Fund, such as in connection with banking, custody, brokerage and derivatives transactions. Manager, Trustee and Portfolio Adviser: TDAM, a wholly-owned subsidiary of The Toronto-Dominion Bank ( TD ), is the manager, trustee and portfolio adviser of the Fund. TDAM has retained T. Rowe Price Associates, Inc. as sub-adviser for the Fund in addition to TDAM. The Fund pays TDAM an annual management fee, which may vary for each series of Fund units, and an annual administration fee of 0.30 percent with respect to the Investor Series, Advisor Series and D-Series units of the Fund. Registrar and Transfer Agent: TD is the registrar and transfer agent of the Fund, and as such maintains all unitholder records, processes purchase, switch, conversion and redemption orders, issues investor statements and prepares annual tax reporting information on behalf of the Fund. TD earns a foreign exchange spread when unitholders switch between units of funds denominated in different currencies. The Fund also maintains bank accounts and overdraft provisions with TD for which TD earns a fee. Buying and Selling Securities: TDAM has established an independent review committee ( IRC ) which acts as an impartial and independent committee to review and provide recommendations or, if appropriate, approvals respecting any conflict of interest matters referred to it by TDAM. The IRC prepares, at least annually, a report of its activities for securityholders of the Fund. The report is available on the TDAM website at tdassetmanagement.com or at the securityholder s request at no cost by contacting TDAM (see front cover). The Fund did not engage in any portfolio transactions requiring IRC approval during the Reporting Period. Distributor: For certain series of units of the Fund, TD Investment Services Inc., a wholly-owned subsidiary of TD, is the principal distributor for which it is paid a trailer commission by TDAM. Units of the Fund are also distributed through brokers and dealers including TD Waterhouse Canada Inc. ( TDW ), a wholly-owned subsidiary of TD. TDW, like other dealers, is paid a trailer commission by TDAM for distributing certain series of units of the Fund. Trailer commissions are paid by TDAM out of the management fees it receives from the Fund and are based on the average value of assets held by each dealer. 2
Financial Highlights The following tables show selected key financial information about the Fund and are intended to help you understand the Fund s financial performance for the past five fiscal years, as applicable. Net Assets per Unit 1 INVESTOR SERIES 2015 2014 2013 2012 2011 Net Assets, Beginning of Year $ 38.96 $ 29.56 $ 19.68 $ 17.07 $ 17.22 Increase (Decrease) from Operations: Total Revenue 1.64 1.38 0.30 0.15 0.13 Total Expenses (excluding distributions) (1.46) (1.06) (0.73) (0.60) (0.53) Realized Gains (Losses) for the Period 12.52 13.35 4.88 2.23 1.84 Unrealized Gains (Losses) for the Period 3.05 (4.48) 5.41 0.82 (1.59) Total Increase (Decrease) from Operations 2 15.75 9.19 9.86 2.60 (0.15) Distributions: From Net Investment Income (excluding dividends) 0.00 0.00 0.00 0.00 0.00 From Dividends 0.00 0.00 0.00 0.00 0.00 From Capital Gains 0.00 0.00 0.00 0.00 0.00 Return of Capital 0.00 0.00 0.00 0.00 0.00 Total Annual Distributions 3 0.00 0.00 0.00 0.00 0.00 Net Assets at December 31 $ 54.89 $ 38.96 $ 29.56 $ 19.68 $ 17.07 ADVISOR SERIES 2015 2014 2013 2012 2011 Net Assets, Beginning of Year $ 8.97 $ 6.80 $ 4.53 $ 3.93 $ 3.96 Increase (Decrease) from Operations: Total Revenue 0.38 0.31 0.07 0.04 0.03 Total Expenses (excluding distributions) (0.33) (0.25) (0.17) (0.14) (0.12) Realized Gains (Losses) for the Period 2.93 3.02 1.13 0.51 0.43 Unrealized Gains (Losses) for the Period 0.68 (1.00) 1.27 0.19 (0.37) Total Increase (Decrease) from Operations 2 3.66 2.08 2.30 0.60 (0.03) Distributions: From Net Investment Income (excluding dividends) 0.00 0.00 0.00 0.00 0.00 From Dividends 0.00 0.00 0.00 0.00 0.00 From Capital Gains 0.00 0.00 0.00 0.00 0.00 Return of Capital 0.00 0.00 0.00 0.00 0.00 Total Annual Distributions 3 0.00 0.00 0.00 0.00 0.00 Net Assets at December 31 $ 12.64 $ 8.97 $ 6.80 $ 4.53 $ 3.93 1 This information is derived from the Fund s audited annual financial statements. The Fund adopted International Financial Reporting Standards ( IFRS ) on January 1, 2014 and accordingly adjusted the immediately preceding financial year ended December 31, 2013 to reflect the amounts in accordance with IFRS. Previously, financial statements were prepared as per Canadian generally accepted accounting principles ( GAAP ) under which the Fund measured fair values of its investments based on bid prices for long positions and ask prices for short positions. As such, the net assets per unit presented in the financial statements may have differed from the net asset value ( NAV ) per unit calculated for fund pricing purposes. Under IFRS, the Fund measures fair values of its investments based on close market prices, where the close market price falls within the bid-ask spread or based on quotations from recognized dealers. As such, the Fund s accounting policies for measuring the fair value of investments in the financial statements are substantively consistent with those used in measuring the NAV for transactions with unitholders. All figures presented prior to January 1, 2013 were prepared in accordance with Canadian GAAP. 2 Net assets and distributions are based on the actual number of units outstanding at the relevant time. The increase (decrease) from operations presented above starting from fiscal year 2013 are based on the weighted average number of units outstanding over the financial periods. The increase (decrease) from operations prior to 2013 were calculated by aggregating each valuation day s increase (decrease) from operations divided by the number of units outstanding on that date. This table is not intended to be a reconciliation of the net assets per unit. 3 Distributions were paid in cash or reinvested in additional units of the Fund, or both. 3
Net Assets per Unit 1 (continued) F-SERIES 2015 2014 2013 2012 2011 Net Assets, Beginning of Year $ 10.74 $ 8.03 $ 5.27 $ 4.50 $ 4.47 Increase (Decrease) from Operations: Total Revenue 0.49 0.35 0.08 0.04 0.04 Total Expenses (excluding distributions) (0.21) (0.17) (0.11) (0.09) (0.07) Realized Gains (Losses) for the Period 3.67 3.57 1.33 0.59 0.48 Unrealized Gains (Losses) for the Period 0.56 (1.30) 1.71 0.22 (0.42) Total Increase (Decrease) from Operations 2 4.51 2.45 3.01 0.76 0.03 Distributions: From Net Investment Income (excluding dividends) 0.00 0.00 0.00 0.00 0.00 From Dividends 0.00 0.00 0.00 0.00 0.00 From Capital Gains 0.00 0.00 0.00 0.00 0.00 Return of Capital 0.00 0.00 0.00 0.00 0.00 Total Annual Distributions 3 0.00 0.00 0.00 0.00 0.00 Net Assets at December 31 $ 15.36 $ 10.74 $ 8.03 $ 5.27 $ 4.50 D-SERIES 2015* 2014 2013 2012 2011 Net Assets, Beginning of Year $ 10.00 N/A N/A N/A N/A Increase (Decrease) from Operations: Total Revenue 0.04 N/A N/A N/A N/A Total Expenses (excluding distributions) (0.07) N/A N/A N/A N/A Realized Gains (Losses) for the Period 0.68 N/A N/A N/A N/A Unrealized Gains (Losses) for the Period 0.27 N/A N/A N/A N/A Total Increase (Decrease) from Operations 2 0.92 N/A N/A N/A N/A Distributions: From Net Investment Income (excluding dividends) 0.00 N/A N/A N/A N/A From Dividends 0.00 N/A N/A N/A N/A From Capital Gains 0.00 N/A N/A N/A N/A Return of Capital 0.00 N/A N/A N/A N/A Total Annual Distributions 3 0.00 N/A N/A N/A N/A Net Assets at December 31 $ 11.46 N/A N/A N/A N/A 1 This information is derived from the Fund s audited annual financial statements. The Fund adopted International Financial Reporting Standards ( IFRS ) on January 1, 2014 and accordingly adjusted the immediately preceding financial year ended December 31, 2013 to reflect the amounts in accordance with IFRS. Previously, financial statements were prepared as per Canadian generally accepted accounting principles ( GAAP ) under which the Fund measured fair values of its investments based on bid prices for long positions and ask prices for short positions. As such, the net assets per unit presented in the financial statements may have differed from the net asset value ( NAV ) per unit calculated for fund pricing purposes. Under IFRS, the Fund measures fair values of its investments based on close market prices, where the close market price falls within the bid-ask spread or based on quotations from recognized dealers. As such, the Fund s accounting policies for measuring the fair value of investments in the financial statements are substantively consistent with those used in measuring the NAV for transactions with unitholders. All figures presented prior to January 1, 2013 were prepared in accordance with Canadian GAAP. 2 Net assets and distributions are based on the actual number of units outstanding at the relevant time. The increase (decrease) from operations presented above starting from fiscal year 2013 are based on the weighted average number of units outstanding over the financial periods. The increase (decrease) from operations prior to 2013 were calculated by aggregating each valuation day s increase (decrease) from operations divided by the number of units outstanding on that date. This table is not intended to be a reconciliation of the net assets per unit. 3 Distributions were paid in cash or reinvested in additional units of the Fund, or both. * Data reported represents results from the commencement of operations to December 31 of the year indicated. Please refer to the Year-by-year returns charts in the Past Performance section for commencement date. Initial offering price. 4
Ratios and Supplemental Data INVESTOR SERIES 2015 2014 2013 2012 2011 Total Net Asset Value (000s) 1 $ 320,862 $ 202,460 $ 143,952 $ 98,814 $ 93,846 Number of Units Outstanding 1 5,845,073 5,196,540 4,869,564 5,020,924 5,493,384 Management Expense Ratio (%) 2 2.82 2.82 2.82 2.82 2.82 Management Expense Ratio Before Waivers or Absorptions (%) 2.82 2.82 2.82 2.82 2.82 Trading Expense Ratio (%) 3 0.22 0.23 0.17 0.31 0.17 Portfolio Turnover Rate (%) 4 246.66 254.47 97.63 181.33 113.69 Net Asset Value per Unit $ 54.89 $ 38.96 $ 29.56 $ 19.68 $ 17.08 ADVISOR SERIES 2015 2014 2013 2012 2011 Total Net Asset Value (000s) 1 $ 54,785 $ 26,637 $ 14,508 $ 9,024 $ 8,768 Number of Units Outstanding 1 4,333,594 2,969,363 2,132,075 1,992,475 2,230,415 Management Expense Ratio (%) 2 2.81 2.80 2.81 2.82 2.80 Management Expense Ratio Before Waivers or Absorptions (%) 2.81 2.80 2.81 2.82 2.80 Trading Expense Ratio (%) 3 0.22 0.23 0.17 0.31 0.17 Portfolio Turnover Rate (%) 4 246.66 254.47 97.63 181.33 113.69 Net Asset Value per Unit $ 12.64 $ 8.97 $ 6.80 $ 4.53 $ 3.93 F-SERIES 2015 2014 2013 2012 2011 Total Net Asset Value (000s) 1 $ 55,752 $ 14,586 $ 5,110 $ 2,252 $ 2,245 Number of Units Outstanding 1 3,630,378 1,357,978 636,345 427,361 498,212 Management Expense Ratio (%) 2 1.34 1.35 1.35 1.36 1.34 Management Expense Ratio Before Waivers or Absorptions (%) 1.34 1.35 1.35 1.36 1.34 Trading Expense Ratio (%) 3 0.22 0.23 0.17 0.31 0.17 Portfolio Turnover Rate (%) 4 246.66 254.47 97.63 181.33 113.69 Net Asset Value per Unit $ 15.36 $ 10.74 $ 8.03 $ 5.27 $ 4.51 D-SERIES 2015 2014 2013 2012 2011 Total Net Asset Value (000s) 1 $ 7,281 N/A N/A N/A N/A Number of Units Outstanding 1 635,524 N/A N/A N/A N/A Management Expense Ratio (%) 2 2.03 N/A N/A N/A N/A Management Expense Ratio Before Waivers or Absorptions (%) 2.03 N/A N/A N/A N/A Trading Expense Ratio (%) 3 0.22 N/A N/A N/A N/A Portfolio Turnover Rate (%) 4 246.66 N/A N/A N/A N/A Net Asset Value per Unit $ 11.46 N/A N/A N/A N/A 1 This information is provided as at December 31 of the past five fiscal years, as applicable. 2 Management expense ratio ( MER ) is based on total expenses (excluding distributions, commissions and other portfolio transaction costs) for the stated period and is expressed as an annualized percentage of daily average NAV during the period. It excludes any operating expenses waived or absorbed by TDAM, which may be discontinued at any time by TDAM at its discretion without notice. 3 The trading expense ratio represents total commissions and other portfolio transaction costs expressed as an annualized percentage of daily average NAV during the stated period. 4 The Fund s portfolio turnover rate indicates how actively the Fund s portfolio adviser manages its investments. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the stated period. The higher a fund s portfolio turnover rate, the greater the trading costs payable by the fund in the period, and the greater the chance of an investor receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate and the performance of a fund. 5
Management Fees As manager and trustee of the Fund, TDAM is responsible for the overall business and affairs of the Fund including activities related to making units of the Fund available to investors, and providing, or arranging for the provision of, investment advisory services and marketing services to the Fund. In consideration for the provision of such services, each series of the Fund pays TDAM a management fee. Management fees are calculated and accrued as a percentage of the net asset value of each series of units of the Fund, as of the close of business on each business day for each series and are paid monthly to TDAM. The maximum management fee is the maximum fee that can be charged to each series of units of the Fund according to the simplified prospectus. TDAM may charge management fees that are less than the management fees TDAM is otherwise entitled to charge each series of units of the Fund. The actual manage ment fee is the annualized fee that was charged for the Reporting Period. TDAM may charge the maximum management fee without notice to unitholders. Management fees for the Reporting Period and a breakdown of the major services rendered for each series, as a percentage of the actual management fees, are as follows: Past Performance The following charts show how the Fund has performed in the past, and can help you understand the risks of investing in the Fund. These returns include the reinvestment of all distributions and would be lower if an investor did not reinvest distributions. They do not include deduction of sales, switch, redemption, or other optional charges (which dealers may charge) or income taxes payable, and these returns would be lower if they did. The Fund s past performance does not necessarily indicate how it will perform in the future. Year-by-year returns The bar charts show how the Fund s performance has varied from year to year for each of the years shown. They show in percentage terms how an investment made on January 1 would have increased or decreased by December 31. Maximum Actual Dealer Waived (expressed as a %) Mgmt. Fee Mgmt. Fee Compensation Expenses Other Investor Series 2.25 2.25 43.06 0.00 56.94 Advisor Series 2.25 2.25 51.73 0.00 48.27 F-Series 1.25 1.25 0.00 0.00 100.00 D-Series 1.50 1.50 12.33 0.02 87.65 Investment advisory, trustee, marketing services and other. 6
Annual Compound Returns The following table shows the annual compound total returns for each series of units of the Fund for each of the periods indicated ended on, compared with the following benchmarks: Product Benchmark: MSCI AC World Information Technology Index (ND, C$) This index is comprised of stocks of technology companies from developed and emerging markets, net of withholding taxes. General market indices: MSCI World Index (Net Dividend, C$) ( MSCI World Index (ND, C$) ) This index includes stocks of companies in all the developed markets around the world, net of withholding taxes. Past 10 Past 5 Past 3 Past (expressed as a %) years years years year INVESTOR SERIES TD Science & Technology Fund 14.6 26.1 40.8 40.9 Product Benchmark 9.1 18.3 28.0 23.8 General market: MSCI World Index (ND, C$) 6.8 15.0 22.5 18.9 ADVISOR SERIES TD Science & Technology Fund 14.7 26.1 40.8 40.9 Product Benchmark 9.1 18.3 28.0 23.8 General market: MSCI World Index (ND, C$) 6.8 15.0 22.5 18.9 F-SERIES TD Science & Technology Fund 16.3 27.9 42.8 43.0 Product Benchmark 9.1 18.3 28.0 23.8 General market: MSCI World Index (ND, C$) 6.8 15.0 22.5 18.9 Since Past 5 Past 3 Past (expressed as a %) inception years years year D-SERIES (Start date October 20, 2015) TD Science & Technology Fund 14.6 N/A N/A N/A Product Benchmark 9.2 N/A N/A N/A General market: MSCI World Index (ND, C$) 6.7 N/A N/A N/A Over the Reporting Period, units of the Investor Series and Advisor Series returned 40.9 percent and F-Series returned 43.0 percent, versus 18.9 percent for the broader MSCI World Index (ND, C$). Since its inception on October 20, 2015, units of the D-Series returned 14.6 percent versus 6.7 percent for the MSCI World Index (ND, C$) for the same period. Unlike the index, the Fund s return is quoted after the deduction of fees and expenses. Allocation to, and selection in the media stocks drove the Fund s relative outperformance versus the broader based index. 7
Summary of Investment Portfolio as at % of Net Asset Value as at % of Net Asset Value ASSET ALLOCATION U.S. Equities 51.0 International Equities 42.7 Cash 5.8 Other Net Assets (Liabilities) 0.5 PORTFOLIO DETAILS Information Technology 61.3 Consumer Discretionary 24.6 Industrials 3.4 Telecommunication Services 2.1 Financials 1.9 Health Care 0.4 Cash 5.8 Other Net Assets (Liabilities) 0.5 TOTAL NET ASSET VALUE $ 438,679,645 TOP 25 INVESTMENTS 1. Alphabet Inc. 7.7 2. Tesla Motors Inc. 7.1 3. Liberty Global PLC 7.0 4. Cash 5.8 5. Tencent Holdings Limited 4.9 6. Applied Materials Inc. 4.8 7. JD.com Inc. 4.5 8. ASML Holding NV 4.5 9. LinkedIn Corporation 4.3 10. NXP Semiconductors NV 4.2 11. Avago Technologies Limited 3.8 12. Sabre Corporation 3.4 13. Alibaba Group Holding Limited 3.3 14. Amadeus IT Holding SA 3.3 15. The Priceline Group Inc. 3.0 16. Sensata Technologies Holding NV 3.0 17. Microchip Technology Incorporated 2.8 18. Amazon.com Inc. 2.4 19. SK hynix Inc. 2.1 20. Taiwan Semiconductor Manufacturing Company Limited 2.0 21. Crown Castle International Corp. 1.9 22. QUALCOMM Incorporated 1.8 23. Microsemi Corporation 1.5 24. SoftBank Corp. 1.5 25. NetSuite Inc. 1.4 Total % of Net Asset Value represented by these holdings 92.0 Note: Totals may not add due to rounding to one decimal place of individual figures. The Summary of Investment Portfolio may change due to ongoing portfolio transactions of the Fund. Updates are available quarterly. You may obtain the most current quarterly information by contacting TD Mutual Funds at 1-800-386-3757, by writing to us at TD Asset Management Inc., P.O. Box 100, 66 Wellington Street West, TD Bank Tower, Toronto, Ontario, M5K 1G8, or by e-mail to td.mutualfunds@td.com 8
Caution regarding forward-looking statements Certain portions of this report, including, but not limited to, Results of Operations and Recent Developments, may contain forward-looking state ments including, but not limited to, statements about the Fund, its strategy, risks, expected performance and condition. Forward-looking statements include statements that are predictive in nature, that depend upon or refer to future events or conditions, or that include words such as expects, anticipates, intends, plans, believes, estimates and similar forward-looking expressions or negative versions thereof. In addition, any statement that may be made concerning future performance, strategies or prospects, and possible future Fund action, is also a forward-looking statement. Forward-looking statements are based on current expectations and projections about future general economic, political and relevant market factors, such as interest rates, foreign exchange rates, equity and capital markets, and the general business environment, in each case assuming no changes to applicable tax or other laws or government regulation. Expectations and projections about future events are inherently subject to, among other things, risks and uncertainties, some of which may be unforeseeable. Accordingly, assumptions concerning future economic and other factors may prove to be incorrect at a future date. Forward-looking statements are not guarantees of future performance, and actual events could differ materially from those expressed or implied in any forward-looking statements made by the Fund. Any number of important factors could con tribute to these digressions, including, but not limited to, general economic, political and relevant market factors in North America and internationally, interest and foreign exchange rates, equity and capital markets, business competition, tech nological change, changes in government relations, unexpected judicial or regulatory proceedings and catastrophic events. The above mentioned list of important factors is not exhaustive. You are encouraged to consider these and other factors carefully before making any investment decisions and you are urged to avoid placing any undue reliance on forward-looking statements. Further, there is no specific intention of updating any forward-looking statements contained herein whether as a result of new information, future events or otherwise. For Funds with references to FTSE TMX Canada indices: FTSE TMX Global Debt Capital Markets Inc. ( FTDCM ), FTSE International Limited ( FTSE ), the London Stock Exchange Group companies (the Exchange ) or TSX INC. ( TSX and together with FTDCM, FTSE and the Exchange, the Licensor Parties ). The Licensor Parties make no warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the index/indices ( the Index/Indices ) and/or the figure at which the said Index/Indices stand at any particular time on any particular day or otherwise. The Index/Indices are compiled and calculated by FTDCM and all copyright in the Index/Indices values and constituent lists vests in FTDCM. The Licensor Parties shall not be liable (whether in negligence or otherwise) to any person for any error in the Index/Indices and the Licensor Parties shall not be under any obligation to advise any person of any error therein. TMX is a trade mark of TSX Inc. and is used under licence. FTSE is a trade mark of the London Stock Exchange Group companies and is used by FTDCM under licence. TD Mutual Funds, TD Pools and TD Private Funds are managed by TD Asset Management Inc., a wholly-owned subsidiary of The Toronto-Dominion Bank. All trademarks are the property of their respective owners. The TD logo and other trade-marks are the property of The Toronto-Dominion Bank. 9