TD High Yield Bond Fund

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for the period ended December 31, 2015

TD Mutual Funds

Annual Management Report of Fund Performance

(03/16)

525444

This Annual Management Report of Fund Performance 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 [email protected], or by visiting our website at tdassetmanagement.com or the SEDAR website at sedar.com

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Management Discussion of Fund Performance

Investment Objectives and Strategies

The investment objective of the TD High Yield Bond Fund (“Fund”)

is to seek to provide income and the opportunity for capital

apprecia-tion over the longer term. In seeking to achieve this objective, the

Fund invests primarily in high-yield corporate bonds or other income

producing securities located anywhere in the world. The Fund

employs a bottom-up, “buy-and-hold” strategy emphasizing analysis

of individual corporations in the context of a global macro economic

environment, selecting securities based on methodical risk/return

analysis aiming to maximize risk adjusted returns for the Fund.

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 negative 5.7 percent*

for the year ended December 31, 2015 (“Reporting Period”), versus

negative 2.7 percent for the Fund’s product benchmark, the BofA

Merrill Lynch BB-B US High Yield Index (Hedged, 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

Relatively strong employment figures and real wage growth, along

with a number of other economic indicators that pointed to areas

of strength in the U.S. economy, prompted the U.S. Federal Reserve

Board (“Fed”) to raise its federal funds interest rate by 0.25 percent

in December 2015. This marked the Fed’s first interest rate increase

since before the global economic downturn of 2008. The interest

rate hike also came at a time when central banks across the world

were dropping their interest rates in response to continued economic

weakness. These diverging central bank policies resulted in a stronger

U.S. dollar compared to many other global currencies.

The yield curve flattened over the Reporting Period. U.S. Treasuries

rose at the shorter end of the yield curve, while intermediate and

longer bonds ended the Reporting Period largely unchanged.

High-yield corporate bonds declined, with prices and spreads somewhat

volatile during the Reporting Period. The BofA Merrill Lynch US High

Yield Master II Index declined approximately 5 percent. As a number

of high-yield issuers tend to be resource-based companies, falling oil

and commodity prices negatively impacted these issuers’ results and

caused spreads to widen.

In addition, fixed income market volatility increased as investors

speculated about when the Fed would begin to raise interest rates

and the pace of future interest rate increases. Slowing economic

growth from China further affected demand for commodities.

The high-yield bond market was challenged as a result of concerns

about commodity-related issuers and the potential implications

on liquidity.

Key Contributors/Detractors

Overall, sector and quality selection detracted from the Fund’s

relative performance.

• The Fund’s 9 percent overweight exposure to CCC-rated bonds

detracted from relative performance as these bonds

underper-formed B-rated and BB-rated high-yield bonds. However, the Fund’s

approximately 13 percent underweight exposure to U.S.

dollar-denominated energy bonds contributed to relative performance as

the energy sector struggled with declining oil prices.

• Security selection, particularly in the resource and industrials

sectors, detracted from relative performance. However, the Fund’s

yield advantage versus the BofA Merrill Lynch BB-B US High Yield

Index (Hedged, C$), which was obtained through positive security

selection, contributed to relative performance.

High-yield bonds may potentially become illiquid securities. The

Portfolio Adviser assesses the liquidity of securities at the time of

purchase by the Fund. Existing holdings are assessed to determine

liquidity by the Portfolio Adviser as part of the ongoing investment

process. Consistent with National Instrument NI 81-102 – Mutual

Funds, the Fund will hold cash and cash equivalents to ensure

sufficient liquidity to meet unitholder redemptions.

Assets

The Investor Series, Premium Series, Advisor Series and S-Series

units of the Fund experienced a significant decrease in assets due

to investor redemption activity. The Premium F-Series units of the

Fund experienced a significant increase in assets due to investor

purchase activity.

Recent Developments

The Fund continues to emphasize capital preservation within active

fixed income portfolios without sacrificing yield advantage relative to

the BofA Merrill Lynch BB-B US High Yield Index (Hedged, C$). The

Portfolio Adviser is mindful of macroeconomic factors, including slow

global growth, elevated sovereign debt levels, demographic trends

and inflationary/disinflationary pressures. However, within the context

of slow growth, economic improvements in the U.S. and continuing

high levels of central bank liquidity globally have helped to reduce

the probability of extreme outcomes. The Portfolio Adviser anticipates

that global central banks should maintain their accommodative

stance for some time.

As the U.S. economic outlook continues to improve, positive

develop-ments in the labour force and inflation provided the confidence

necessary for the Fed to raise interest rates from historically low

levels. However, much of the global economy is still using

accom-modative monetary policies to spur economic growth. The Portfolio

Adviser anticipates that this divergence in monetary policy between

the U.S. and other developed economies may create periods of

increased volatility with a potential for reduced liquidity.

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The Portfolio Adviser anticipates that active management with

a focus on quality and liquidity could serve the Fund well in the

current environment.

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.

The Fund pays TDAM an annual manage ment fee, which may vary

for each series of Fund units, and an annual administration fee of

0.15 percent with respect to the Investor Series, Premium Series,

Advisor Series, H-Series, T-Series and D-Series units of the Fund.

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.

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 relied on standing instructions from the IRC in respect

of one or more of the following transactions:

(a) trades in securities of TD or any affiliate or associate thereof;

(b) investments in the securities of an issuer where TD Securities Inc.,

TDW, or any other affiliate of TDAM (a “Related Dealer”) acted

as an underwriter during the distri bution 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

investment 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.

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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 Unit1

INVESTOR SERIES 2015 2014 2013 2012 2011 Net Assets, Beginning of Year $ 6.72 $ 6.53 $ 6.14 $ 5.92 $ 6.19 Increase (Decrease) from Operations:

Total Revenue 0.46 0.45 0.46 0.67 0.41 Total Expenses (excluding distributions) (0.12) (0.12) (0.12) (0.12) (0.12) Realized Gains (Losses) for the Period (0.45) (0.16) (0.35) 0.02 (0.04) Unrealized Gains (Losses) for the Period (0.22) 0.12 0.47 0.09 (0.21) Total Increase (Decrease) from Operations2_{(0.33) 0.29 0.46 0.66 0.04}

Distributions:

From Net Investment Income (excluding dividends) (0.34) (0.10) (0.08) (0.47) (0.31) 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 Distributions3_{(0.34) (0.10) (0.08) (0.47) (0.31)}

Net Assets at December 31 $ 6.01 $ 6.72 $ 6.53 $ 6.11 $ 5.92 INSTITUTIONAL SERIES 2015 2014 2013 2012 2011 Net Assets, Beginning of Year $ 7.56 $ 7.31 $ 6.86 $ 6.61 $ 6.91 Increase (Decrease) from Operations:

Distributions:

Net Assets at December 31 $ 6.77 $ 7.56 $ 7.31 $ 6.83 $ 6.61

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.

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Net Assets per Unit1 (continued)

PREMIUM SERIES 2015 2014 2013* 2012 2011 Net Assets, Beginning of Year $ 10.41 $ 10.11 $ 10.00†_N/A_N/A

Increase (Decrease) from Operations:

Total Revenue 0.70 0.70 0.09 N/A N/A Total Expenses (excluding distributions) (0.17) (0.17) (0.02) N/A N/A Realized Gains (Losses) for the Period (0.54) (0.26) (0.43) N/A N/A Unrealized Gains (Losses) for the Period (0.54) 0.07 0.44 N/A N/A Total Increase (Decrease) from Operations2_{(0.55) 0.34 0.08}_N/A_N/A

Distributions:

From Net Investment Income (excluding dividends) (0.55) (0.15) 0.00 N/A N/A From Dividends 0.00 0.00 0.00 N/A N/A From Capital Gains 0.00 0.00 0.00 N/A N/A Return of Capital 0.00 0.00 0.00 N/A N/A Total Annual Distributions3_{(0.55) (0.15) 0.00}_N/A_N/A

Net Assets at December 31 $ 9.30 $ 10.41 $ 10.11 N/A N/A ADVISOR SERIES 2015 2014 2013 2012 2011 Net Assets, Beginning of Year $ 7.85 $ 7.63 $ 7.18 $ 6.92 $ 7.24 Increase (Decrease) from Operations:

Distributions:

Net Assets at December 31 $ 7.02 $ 7.85 $ 7.63 $ 7.15 $ 6.92 F-SERIES 2015 2014 2013 2012 2011 Net Assets, Beginning of Year $ 7.43 $ 7.20 $ 6.76 $ 6.52 $ 6.81 Increase (Decrease) from Operations:

Distributions:

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.

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PREMIUM F-SERIES 2015 2014 2013* 2012 2011 Net Assets, Beginning of Year $ 10.47 $ 10.12 $ 10.00†_N/A_N/A

Total Revenue 0.72 0.70 0.10 N/A N/A Total Expenses (excluding distributions) (0.08) (0.09) (0.01) N/A N/A Realized Gains (Losses) for the Period (0.88) (0.12) (0.34) N/A N/A Unrealized Gains (Losses) for the Period (0.34) (0.14) 0.39 N/A N/A Total Increase (Decrease) from Operations2_{(0.58) 0.35 0.14}_N/A_N/A

Distributions:

From Net Investment Income (excluding dividends) (0.60) (0.19) (0.01) N/A N/A From Dividends 0.00 0.00 0.00 N/A N/A From Capital Gains 0.00 0.00 0.00 N/A N/A Return of Capital 0.00 0.00 0.00 N/A N/A Total Annual Distributions3_{(0.60) (0.19) (0.01)}_N/A_N/A

Net Assets at December 31 $ 9.39 $ 10.47 $ 10.12 N/A N/A H-SERIES 2015 2014 2013 2012 2011 Net Assets, Beginning of Year $ 15.05 $ 15.62 $ 15.69 $ 15.49 $ 16.69 Increase (Decrease) from Operations:

Distributions:

From Net Investment Income (excluding dividends) (0.76) (0.23) (0.21) (1.20) (0.83) 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 (0.44) (1.02) (1.05) (0.38) (0.51) Total Annual Distributions3_{(1.20) (1.25) (1.26) (1.58) (1.34)}

Net Assets at December 31 $ 13.05 $ 15.05 $ 15.62 $ 15.63 $ 15.49 S-SERIES 2015 2014 2013 2012 2011 Net Assets, Beginning of Year $ 15.26 $ 15.71 $ 15.62 $ 15.40 $ 16.61 Increase (Decrease) from Operations:

Distributions:

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T-SERIES 2015 2014 2013 2012 2011 Net Assets, Beginning of Year $ 15.04 $ 15.62 $ 15.69 $ 15.48 $ 16.69 Increase (Decrease) from Operations:

Distributions:

Net Assets at December 31 $ 13.03 $ 15.04 $ 15.62 $ 15.63 $ 15.48 Q-SERIES 2015 2014 2013 2012 2011 Net Assets, Beginning of Year $ 15.17 $ 15.56 $ 15.41 $ 15.22 $ 16.41 Increase (Decrease) from Operations:

Distributions:

Net Assets at December 31 $ 13.32 $ 15.17 $ 15.56 $ 15.34 $ 15.22 D-SERIES 2015* 2014 2013 2012 2011 Net Assets, Beginning of Year $ 10.00†_N/A_N/A_N/A_N/A

Total Revenue 0.58 N/A N/A N/A N/A Total Expenses (excluding distributions) (0.13) N/A N/A N/A N/A Realized Gains (Losses) for the Period (0.36) N/A N/A N/A N/A Unrealized Gains (Losses) for the Period (0.90) N/A N/A N/A N/A Total Increase (Decrease) from Operations2_(0.81)_N/A_N/A_N/A_N/A

Distributions:

From Net Investment Income (excluding dividends) (0.41) 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 Distributions3_(0.41)N/A N/A N/A N/A Net Assets at December 31 $ 8.90 N/A N/A N/A N/A

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O-SERIES 2015 2014 2013 2012 2011 Net Assets, Beginning of Year $ 10.90 $ 10.51 $ 9.84 $ 9.48 $ 9.91 Increase (Decrease) from Operations:

Total Revenue 0.74 0.73 0.74 1.08 0.66 Total Expenses (excluding distributions) 0.00 0.00 0.00 0.00 0.00 Realized Gains (Losses) for the Period (0.78) (0.28) (0.58) 0.03 (0.06) Unrealized Gains (Losses) for the Period (0.35) 0.17 0.81 0.15 (0.33) Total Increase (Decrease) from Operations2_{(0.39) 0.62 0.97 1.26 0.27}

Distributions:

3 Distributions were paid in cash or reinvested in additional units of the Fund, or both. Ratios and Supplemental Data

INVESTOR SERIES 2015 2014 2013 2012 2011 Total Net Asset Value (000s)1_{$ 52,727 $ 78,752 $ 90,524 $ 96,687 $ 88,146}

Number of Units Outstanding1_{8,776,825 11,726,041 13,864,786 15,752,740 14,828,533}

Management Expense Ratio (%)2_{1.77 1.77 1.93 2.01 2.01}

Management Expense Ratio Before

Waivers or Absorptions (%) 1.77 1.77 1.93 2.01 2.01 Trading Expense Ratio (%)3_{0.00 0.00 0.00 0.00 0.00}

Portfolio Turnover Rate (%)4_{25.13 35.11 28.42 29.59 35.52}

Net Asset Value per Unit $ 6.01 $ 6.72 $ 6.53 $ 6.14 $ 5.94 INSTITUTIONAL SERIES 2015 2014 2013 2012 2011 Total Net Asset Value (000s)1_{$ 90,583 $ 108,989 $ 108,758 $ 144,917 $ 110,381}

Net Asset Value per Unit $ 6.77 $ 7.56 $ 7.31 $ 6.86 $ 6.64

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

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PREMIUM SERIES 2015 2014 2013 2012 2011 Total Net Asset Value (000s)1_{$ 2,878 $ 4,367 $ 1,597}_N/A_N/A

Number of Units Outstanding1_{309,365 419,577 157,967}_N/A_N/A

Management Expense Ratio (%)2_{1.67 1.68 1.70}_N/A_N/A

Waivers or Absorptions (%) 1.67 1.68 1.70 N/A N/A Trading Expense Ratio (%)3_{0.00 0.00 0.00}_N/A_N/A

Portfolio Turnover Rate (%)4_{25.13 35.11 28.42}_N/A_N/A

Net Asset Value per Unit $ 9.30 $ 10.41 $ 10.11 N/A N/A ADVISOR SERIES 2015 2014 2013 2012 2011 Total Net Asset Value (000s)1_{$ 98,866 $ 158,547 $ 188,058 $ 218,449 $ 199,093}

Net Asset Value per Unit $ 7.02 $ 7.85 $ 7.63 $ 7.18 $ 6.95 F-SERIES 2015 2014 2013 2012 2011 Total Net Asset Value (000s)1_{$ 39,246 $ 57,625 $ 62,121 $ 63,452 $ 54,585}

Net Asset Value per Unit $ 6.65 $ 7.43 $ 7.20 $ 6.76 $ 6.54 PREMIUM F-SERIES 2015 2014 2013 2012 2011 Total Net Asset Value (000s)1_{$ 9,011 $ 6,807 $ 579}_N/A_N/A

Number of Units Outstanding1_{960,010 650,407 57,263}_N/A_N/A

Management Expense Ratio (%)2_{0.83 0.81 0.85}_N/A_N/A

Waivers or Absorptions (%) 0.83 0.81 0.85 N/A N/A Trading Expense Ratio (%)3_{0.00 0.00 0.00}_N/A_N/A

Portfolio Turnover Rate (%)4_{25.13 35.11 28.42}_N/A_N/A

Net Asset Value per Unit $ 9.39 $ 10.47 $ 10.12 N/A N/A H-SERIES 2015 2014 2013 2012 2011 Total Net Asset Value (000s)1_{$ 3,971 $ 4,527 $ 6,343 $ 3,344 $ 1,318}

Number of Units Outstanding1_{304,375 300,844 406,010 213,089 84,767}

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.

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S-SERIES 2015 2014 2013 2012 2011 Total Net Asset Value (000s)1_{$ 617 $ 1,356 $ 667 $ 731 $ 416}

Net Asset Value per Unit $ 13.35 $ 15.26 $ 15.71 $ 15.62 $ 15.47 T-SERIES 2015 2014 2013 2012 2011 Total Net Asset Value (000s)1_{$ 5,670 $ 8,009 $ 10,136 $ 10,509 $ 8,735}

Net Asset Value per Unit $ 13.03 $ 15.04 $ 15.62 $ 15.69 $ 15.55 Q-SERIES 2015 2014 2013 2012 2011 Total Net Asset Value (000s)1_{$ 20,906 $ 24,418 $ 30,122 $ 64,041 $ 62,715}

Net Asset Value per Unit $ 13.32 $ 15.17 $ 15.56 $ 15.41 $ 15.28 D-SERIES 2015 2014 2013 2012 2011 Total Net Asset Value (000s)1_{$ 752}_N/A_N/A_N/A_N/A

Number of Units Outstanding1_84,431_N/A_N/A_N/A_N/A

Management Expense Ratio (%)2_1.51_N/A_N/A_N/A_N/A

Waivers or Absorptions (%) 1.51 N/A N/A N/A N/A Trading Expense Ratio (%)3_0.00_N/A_N/A_N/A_N/A

Portfolio Turnover Rate (%)4_25.13_N/A_N/A_N/A_N/A

Net Asset Value per Unit $ 8.90 N/A N/A N/A N/A O-SERIES 2015 2014 2013 2012 2011 Total Net Asset Value (000s)1_{$ 1,145,656 $ 1,317,376 $ 1,147,967 $ 1,167,740 $ 965,616}

Management Expense Ratio (%)2,5_{0.00 0.00 0.00 0.00 0.00}

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.

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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, other than O-Series units,

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 management 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:

Maximum Actual Dealer Waived

(expressed as a %) Mgmt. Fee Mgmt. Fee Compensation Expenses Other‡ Investor Series 1.45 1.45 33.40 0.02 66.58 Institutional Series 1.00 0.52 0.00 0.06 99.94 Premium Series 1.35 1.35 37.25 0.02 62.73 Advisor Series 1.45 1.45 31.16 0.02 68.82 F-Series 0.85 0.85 0.00 0.04 99.96 Premium F-Series 0.75 0.75 0.00 0.04 99.96 H-Series 1.45 1.45 32.77 0.02 67.21 S-Series 0.85 0.85 0.00 0.04 99.96 T-Series 1.45 1.45 45.68 0.02 54.30 Q-Series 1.00 0.52 0.00 0.06 99.94 D-Series 1.20 1.20 20.73 0.03 79.24 O-Series 0.00 0.00 N/A N/A N/A There are no management fees or expenses paid by the Fund in respect of O-Series units of the Fund. Unitholders in the O-Series pay a negotiated administration fee directly to TDAM.

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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

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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

December 31, 2015, compared with the following benchmarks:

• Product Benchmark:

° BofA Merrill Lynch BB-B US High Yield Index (Hedged, C$) –

The BofA Merrill Lynch BB-B US High Yield Index is a subset

of the BofA Merrill Lynch US High Yield Index which includes all

securities rated BB1 through B3. The U.S. dollar exposure has

been hedged into Canadian dollars.

• General market indices:

° BofA Merrill Lynch U.S. Broad Market Index (US$) – This index

is comprised of U.S. dollar denominated investment-grade debt

publicly issued in the U.S. market.

Past 10 Past 5 Past 3 Past (expressed as a %) years years years year INVESTOR SERIES

TD High Yield Bond Fund 4.1 3.6 2.0 -5.7 Product Benchmark 6.1 5.8 2.8 -2.7 General market:

BofA Merrill Lynch US Broad

Market Index (US$) 4.5 3.3 1.5 0.6 INSTITUTIONAL SERIES

Market Index (US$) 4.5 3.3 1.5 0.6 ADVISOR SERIES

Market Index (US$) 4.5 3.3 1.5 0.6 F-SERIES

Market Index (US$) 4.5 3.3 1.5 0.6 Since Past 5 Past 3 Past (expressed as a %) inception years years year PREMIUM SERIES

(Start date November 12, 2013)

TD High Yield Bond Fund -0.2 N/A N/A -5.6 Product Benchmark 1.3 N/A N/A -2.7 General market:

Market Index (US$) 3.1 N/A N/A 0.6 PREMIUM F-SERIES

(Start date November 12, 2013)

TD High Yield Bond Fund 0.7 N/A N/A -4.8 Product Benchmark 1.3 N/A N/A -2.7 General market:

Market Index (US$) 3.1 N/A N/A 0.6

Since Past 5 Past 3 Past (expressed as a %) inception years years year H-SERIES

(Start date September 15, 2009)

Market Index (US$) 3.9 3.3 1.5 0.6 S-SERIES

Market Index (US$) 3.9 3.3 1.5 0.6 T-SERIES

Market Index (US$) 3.9 3.3 1.5 0.6 Q-SERIES

Market Index (US$) 3.9 3.3 1.5 0.6 D-SERIES

(Start date February 10, 2015)

TD High Yield Bond Fund -7.0 N/A N/A N/A Product Benchmark -4.7 N/A N/A N/A General market:

Market Index (US$) -0.3 N/A N/A N/A O-SERIES

(Start date April 6, 2010)

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Summary of Investment Portfolio

as at December 31, 2015 % of Net Asset Value ASSET ALLOCATION

U.S. Corporate Bonds 69.8 Canadian Corporate Bonds 18.9 International Corporate Bonds 8.5 U.S. Common Equities 1.7 Index Equivalents 0.3 U.S. Preferred Equities 0.1 Canadian Common Equities 0.0 Short-Term Investments 0.3 Cash 0.0 Other Net Assets (Liabilities) 0.4 TERM ALLOCATION

Maturing in 20+ Years 0.2 Maturing in 10-20 Years 1.2 Maturing in 5-10 Years 41.4 Maturing in 1-5 Years 50.9 Maturing under 1 Year 3.5 U.S. Common Equities 1.7 Index Equivalents 0.3 U.S. Preferred Equities 0.1 Canadian Common Equities 0.0 Short-Term Investments 0.3 Cash 0.0 Other Net Assets (Liabilities) 0.4 CURRENCY WEIGHTING

(after currency hedging)

Canadian Dollar 91.0 United States Dollar 9.0 Euro 0.0 FIXED INCOME CREDIT RATING§

BBB 3.2 BB 50.5 B 31.1 CCC 10.9 CC 0.6 C 0.0 D 0.0 No Rating 0.9

§ Credit ratings are obtained from Standard & Poor’s, Moody’s or DBRS

rating agencies.

TOTAL NET ASSET VALUE $ 1,470,882,704

as at December 31, 2015 % of Net Asset Value TOP 25 INVESTMENTS

1. HCA Inc. (USD) 6.50% due February 15, 2020 2.4 2. International Lease Finance Corporation (USD)

8.75% due March 15, 2017 1.9 3. CBRE Services Inc. (USD), Callable 5.00% due March 15, 2023 1.7 4. CHS/Community Health Systems Inc. (USD),

Callable 5.125% due August 15, 2018 1.6 5. Nielsen Finance LLC/Nielsen Finance Co. (USD),

Callable 5.00% due April 15, 2022 1.6 6. Cooper-Standard Holdings Inc. 1.5 7. Bombardier Inc. (USD) 7.50% due March 15, 2018 1.5 8. Best Buy Co., Inc. (USD), Callable 5.50% due March 15, 2021 1.5 9. Ally Financial Inc. (USD) 7.50% due September 15, 2020 1.5 10. Resolute Forest Products Inc. (USD),

Callable 5.875% due May 15, 2023 1.4 11. NRG Energy Inc. (USD) 7.625% due January 15, 2018 1.3 12. Air Canada, Callable 7.625% due October 01, 2019 1.3 13. Kinetic Concepts Inc./KCI USA Inc. (USD),

Callable 10.50% due November 01, 2018 1.3 14. Mattamy Group Corp. (USD),

Callable 6.50% due November 15, 2020 1.3 15. Jabil Circuit Inc. (USD) 7.75% due July 15, 2016 1.2 16. Micron Technology Inc. (USD),

Callable 5.25% due August 01, 2023 1.2 17. Nokia Corporation (USD) 5.375% due May 15, 2019 1.2 18. CIT Group Inc. (USD) 5.50% due February 15, 2019 1.2 19. Numericable – SFR SA (USD), Callable 6.00% due May 15, 2022 1.2 20. Ally Financial Inc. (USD) 3.75% due November 18, 2019 1.2 21. Navistar International Corporation (USD),

Callable 8.25% due November 01, 2021 1.1 22. VeriSign Inc. (USD), Callable 4.625% due May 01, 2023 1.0 23. T-Mobile US Inc. (USD),

Callable 6.625% due November 15, 2020 1.0 24. Iron Mountain Canada Operations ULC,

Callable 6.125% due August 15, 2021 0.9 25. Denali Borrower LLC/Denali Finance Corp. (USD),

Callable 5.625% due October 15, 2020 0.9

Total % of Net Asset Value represented by these holdings 33.9

Note: Totals may not add due to rounding to one decimal place of individual figures.

CURRENCY LEGEND

(USD) United States Dollar

(16)

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