Select 20i80e Managed Portfolio Corporate Class

Transcription

1 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, and at no cost, by calling , by writing to us at CI Investments Inc., 2 Queen Street East, Twentieth Floor, Toronto, ON, M5C 3G7 or by visiting our website at or SEDAR at Securityholders may also contact us using one of these methods to request a copy of the investment fund s proxy voting policies and procedures, proxy voting disclosure record, or quarterly portfolio disclosure. INVESTMENT OBJECTIVE AND STRATEGIES The objective of the Select 2i8e Managed Portfolio Corporate Class (the Fund ) is to provide returns from a diversified portfolio of equity securities, with a small amount of exposure to income securities to reduce short-term volatility. It aims to invest 2% of its assets in mutual funds that invest primarily in income securities and 8% of its assets in mutual funds that invest primarily in equity securities. In order to achieve the objective, the Fund s assets are diversified by investment style, asset class, and geographic region and the portfolio advisor intends to invest approximately 2% of the Fund s assets in units of CI Income Fund, and approximately 8% in a combination of Select Canadian Equity Managed Fund, Select U.S. Equity Managed Fund and Select International Equity Managed Fund. RISK There were no changes to the Fund over the period of this report that materially affected the overall level of risk associated with the Fund. This Fund is suitable for investors who want to invest in a diversified portfolio of equity securities with a small amount of exposure to income securities to reduce short-term volatility, are investing for the medium and/or long term, and can tolerate medium risk. RESULTS OF OPERATIONS The net asset value of the Fund increased by $13.7 million to $252.1 million from March 31, 217 to March 31, 218. The Fund had net sales of $15.7 million during. The portfolio s performance increased assets by $7.4 million. The Fund paid distributions totalling $9.4 million. Class A shares returned 2.4% after fees and expenses for the one-year period ended March 31, 218. Over the same time period, the Fund s benchmark returned 5.9%. The benchmark is a combination of the S&P/TSX Composite Return Index - 32%, the MSCI World Return Index - 24% in C$ and 24% in local currency and the FTSE TMX Canada Universe Bond Return Index - 2%. The performance of the Fund s other classes is substantially similar to that of Class A shares, except for differences in the structure of fees and expenses. For the returns of the Fund s other classes, please refer to the Past performance section. Late in the period, markets became volatile. Beginning in late January, the U.S. market suffered its first official correction in more than a year, plunging 1% in less than two weeks. In the meantime, the S&P/TSX Composite Index lost 8%, although it had less ground to give up as its leading up to the correction had been smaller. While corporate earnings continued to accelerate through the end of the period, investor sentiment became cautious, with the focus turning to tightening financial conditions and higher interest rates. Rising trade tensions between the United States and China caused further angst. Central banks around the world responded to the accelerating economic backdrop by raising short-term interest rates. In mid-march, the U.S. Federal Reserve increased rates by one-quarter of a percentage point to 1.5%, However, the European Central Bank and Bank of Japan held their benchmark rates steady as they chose to pause their respective economic stimulus programs. Within the income portion, our diversified exposure to global dividend-paying equities, high-yield corporate bonds and global bonds, as well as lower duration on the bond portion added relative value. However, exposure to the U.S. dollar hurt relative performance. Within the equity portion, poor performance in the U.S. and Canadian equity pools detracted value. The portfolio s overall asset allocation made a positive contribution, due largely to an underweight position in Canadian equities. Our equity allocation is more diversified than that of the Canadian economy and the S&P/TSX Composite Index. Our largest underweight exposure is in the financials sector and the positioning within the sector is more diversified than the benchmark. We had overweight exposure to defensive sectors, such as health care and consumer staples, and were underweight in cyclical and interest-rate-sensitive sectors, such as energy and telecommunications services. We continue to use derivatives to help manage the risk of stock market decline. Specifically, we held a market hedge through S&P 5 Index derivatives to limit portfolio volatility. This hedge remains in place and will be removed only when the risk-return trade-off becomes favourable. Overall, the Fund underperformed its benchmark for the period. The following commentary pertains to the results of operations of the underlying funds. Strong economic growth, which became increasingly synchronized across developed and emerging markets, propelled global equities during the period. Global gross domestic product rose nearly 4%, and ongoing corporate earnings growth continued to stoke investor confidence. Stock markets worldwide generally posted double-digit total returns, led by Asian and emerging markets. Canadian stocks underperformed, however, held back by the anticipation of rising interest rates and continuing underperformance in the energy sector. RECENT DEVELOPMENTS As rising short-term interest rates filter through the global economy, we will be watching for signs of slowing economic growth. This may be somewhat offset by the benefits of U.S. tax reform, which should stimulate capital spending and support economic growth in the second half of 218 and beyond. In Canada, housing and consumer debt levels will be closely monitored as these could make the domestic economy vulnerable to a potential slowdown. Effective April 3, 218, Karen Fisher became a member of the CI Board of Governors ( BOG ) and the Independent Review Committee ( IRC ) of the Fund. Meanwhile, Christopher Hopper resigned from the role as a member of the BOG and IRC. CIG

2 RELATED PARTY TRANSACTIONS Manager, Portfolio Advisor and Registrar CI Investments Inc. is the Manager, Portfolio Advisor and Registrar of the Fund. CI Investments Inc. is a subsidiary of CI Financial Corp. The Manager, in consideration for management fees, provides management services required in the day-to-day operations of the Fund. The Manager bears all of the operating expenses of the Fund (other than taxes, borrowing costs and new governmental fees) in return for a fixed administration fee. fee and fixed administration fee rates as at March 31, 218, for each of the classes are shown below: Annual management fee rate (%) Annual fixed administration fee rate (%) A Shares A1 Shares A2 Shares A3 Shares A4 Shares A5 Shares AT5 Shares A1T5 Shares AT8 Shares A1T8 Shares E Shares EF Shares EFT5 Shares EFT8 Shares ET5 Shares ET8 Shares F Shares.95.2 F1 Shares F2 Shares.9.19 F3 Shares F4 Shares.8.12 F5 Shares.7.1 FT8 Shares.95.2 Annual management fee rate (%) Annual fixed administration fee rate (%) OT5 Shares Paid directly by investor.15 OT8 Shares Paid directly by investor.15 P Shares Paid directly by investor.2 PT8 Shares Paid directly by investor.2 W Shares.95.2 The Manager received $3.3 million in management fees and $.4 million in fixed administration fees for. Fees Approximately 26% of total management fees were used to pay for sales and trailing commissions. The remaining 74% of management fees were used for investment management and other general administration. Independent Review Committee The Fund received standing instructions from the Fund s Independent Review Committee with respect to the following related party transactions: a) trades in securities of CI Financial Corp.; b) purchases or sales of securities of an issuer from or to another investment fund managed by the Manager; c) purchases or sales of other investment funds managed by the Manager or their affiliates; and d) mergers involving the Fund and another fund managed by the Manager that is subject to National Instrument Investment Funds. The applicable standing instructions require that related party transactions be conducted in accordance with the Manager s policies and procedures and that the Manager advise the IRC of any material breach of a condition of the standing instructions. The standing instructions require, among other things, that investment decisions in respect of related party transactions (a) are free from any influence by an entity related to the Manager and without taking into account any consideration relevant to an entity related to the Manager; (b) represent the business judgment of the Manager uninfluenced by considerations other than the best interests of the Fund; (c) are made in compliance with the Manager s policies and procedures; and (d) achieve a fair and reasonable result for the Fund. Transactions made by the Manager under the standing instructions are subsequently reviewed by the IRC on a quarterly basis to monitor compliance. The Fund relied on the IRC s standing instructions regarding related party transactions during this reporting year. F1T8 Shares I Shares Paid directly by investor - IT8 Shares Paid directly by investor - O Shares Paid directly by investor.15

3 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 years, as applicable. Net Assets per Share ($) (1) (2) (4) * Increase (decrease) from operations: Dividends: Realized Unrealized increase net investment Net assets Net assets at the beginning of year (2) revenue expenses distributions) (decrease) from operations (2) income ) capital Return of capital (2, 3) at the end of shown (2) $ $ $ $ $ $ $ $ $ $ $ $ A Shares Commencement of operations November 27, 26 Mar. 31, (.35).9 (.41).39 - (.6) (.41) - (.47) Mar. 31, (.32) (.6) (.62) - (.68) Mar. 31, (.31).81 (1.41) (.67) - (.6) (.55) - (.61) Mar. 31, (.31) (.6) (.43) - (.49) Mar. 31, (.28) (.12) - - (.12) A1 Shares Mar. 31, (.25) 1.7 (1.6).1 - (.5) (.31) - (.36) 9.69 A2 Shares Mar. 31, (.24).96 (.93) (.4) - (.5) (.31) - (.36) 9.69 A3 Shares Mar. 31, (.23).91 (1.7) (.2) - (.5) (.31) - (.36) 9.71 A4 Shares Mar. 31, (.22) 1.16 (1.2).24 - (.5) (.31) - (.36) 9.71 A5 Shares Mar. 31, (.22) 1.13 (1.6).12 - (.5) (.32) - (.37) 9.73 *Footnotes for the tables are found at the end of the Net Assets per Share section of the Financial Highlights.

4 Net Assets per Share ($) (1) (2) (4) * Increase (decrease) from operations: Dividends: Realized Unrealized increase net investment Net assets Net assets at the beginning of year (2) revenue expenses distributions) (decrease) from operations (2) income ) capital Return of capital (2, 3) at the end of shown (2) $ $ $ $ $ $ $ $ $ $ $ $ AT5 Shares Commencement of operations April 15, 28 Mar. 31, (.23).57 (.35).14 - (.4) (.26) (.44) (.74) 7.98 Mar. 31, (.23) (.4) (.41) (.45) (.9) 8.52 Mar. 31, (.23).53 (.92) (.46) - (.4) (.38) (.48) (.9) 8.44 Mar. 31, (.24) (.5) (.31) (.48) (.84) 9.82 Mar. 31, (.23) (.1) - (.43) (.53) 9.69 A1T5 Shares Mar. 31, (.25) 1.6 (.7).42 - (.5) (.3) (.46) (.81) 9.25 AT8 Shares Commencement of operations October 1, 27 Mar. 31, (.17).41 (.15).2 - (.3) (.19) (.52) (.74) 5.79 Mar. 31, (.17) (.3) (.3) (.56) (.89) 6.38 Mar. 31, (.18).45 (.8) (.39) - (.3) (.3) (.61) (.94) 6.54 Mar. 31, (.19) (.4) (.25) (.63) (.92) 7.85 Mar. 31, (.19) (.8) - (.57) (.65) 7.98 A1T8 Shares Mar. 31, (.24) 1.7 (2.39) (.42) - (.4) (.29) (.73) (1.6) 8.99 E Shares Commencement of operations October 4, 211 Mar. 31, (.4) 1.16 (.75).38 - (.7) (.48) - (.55) Mar. 31, (.36) (.7) (.72) - (.79) 15.1 Mar. 31, (.35).99 (1.62) (.68) - (.7) (.64) - (.71) 14.1 Mar. 31, (.35) (.7) (.49) - (.56) Mar. 31, (.32) (.14) - - (.14) EF Shares Commencement of operations December 5, 214 Mar. 31, (.16).7 (.48).41 - (.5) (.33) - (.38) 1.7 Mar. 31, (.14) (.4) (.48) - (.52) 1.8 Mar. 31, (.12).74 (1.41) (.57) - (.5) (.42) - (.47) 9.37 Mar. 31, (.4) (.5) (.32) - (.37) 1.23 *Footnotes for the tables are found at the end of the Net Assets per Share section of the Financial Highlights.

5 Net Assets per Share ($) (1) (2) (4) * Increase (decrease) from operations: Dividends: Realized Unrealized increase net investment Net assets Net assets at the beginning of year (2) revenue expenses distributions) (decrease) from operations (2) income ) capital Return of capital (2, 3) at the end of shown (2) $ $ $ $ $ $ $ $ $ $ $ $ EFT5 Shares Commencement of operations July 29, 215 Mar. 31, (.14).68 (.42).31 - (.4) (.27) (.46) (.77) 8.44 Mar. 31, (.12) (.4) (.42) (.47) (.93) 8.9 Mar. 31, (.8).57 (1.17) (.51) - (.4) (.39) (.33) (.76) 8.71 EFT8 Shares Commencement of operations July 29, 215 Mar. 31, (.13).65 (.4).29 - (.4) (.25) (.69) (.98) 7.75 Mar. 31, (.12) (.4) (.4) (.73) (1.17) 8.43 Mar. 31, (.8).56 (1.16) (.51) - (.4) (.39) (.52) (.95) 8.53 ET5 Shares Commencement of operations July 29, 215 Mar. 31, (.23).68 (.42).21 - (.4) (.26) (.45) (.75) 8.18 Mar. 31, (.23) (.4) (.42) (.46) (.92) 8.73 Mar. 31, (.14).56 (1.17) (.58) - (.4) (.39) (.33) (.76) 8.65 ET8 Shares Commencement of operations October 4, 211 Mar. 31, (.25).72 (.42).25 - (.4) (.28) (.79) (1.11) 8.72 Mar. 31, (.25) (.4) (.46) (.84) (1.34) 9.6 Mar. 31, (.26).78 (1.56) (.8) - (.5) (.45) (.92) (1.42) 9.83 Mar. 31, (.28) (.5) (.37) (.95) (1.37) Mar. 31, (.28) (.12) - (.87) (.99) F Shares Commencement of operations November 27, 26 Mar. 31, (.22) 1.4 (.48).57 - (.7) (.44) - (.51) Mar. 31, (.19) (.6) (.65) - (.71) Mar. 31, (.17).84 (1.39) (.46) - (.6) (.57) - (.63) Mar. 31, (.17) (.6) (.44) - (.5) Mar. 31, (.15) (.13) - - (.13) 12.8 F1 Shares Mar. 31, (.15).97 (1.4).3 - (.5) (.32) - (.37) 9.79 *Footnotes for the tables are found at the end of the Net Assets per Share section of the Financial Highlights.

6 Net Assets per Share ($) (1) (2) (4) * Increase (decrease) from operations: Dividends: Realized Unrealized increase net investment Net assets Net assets at the beginning of year (2) revenue expenses distributions) (decrease) from operations (2) income ) capital Return of capital (2, 3) at the end of shown (2) $ $ $ $ $ $ $ $ $ $ $ $ F2 Shares Mar. 31, (.14) 1.26 (.75).61 - (.5) (.32) - (.37) 9.79 F3 Shares Mar. 31, (.14).46 (1.1) (.42) - (.5) (.32) - (.37) 9.8 F4 Shares Mar. 31, (.29) 1.39 (.69).41 - (.5) (.32) - (.37) 9.81 F5 Shares Mar. 31, (.11).82 (.79).13 - (.5) (.32) - (.37) 9.82 FT8 Shares Commencement of operations December 22, 211 Mar. 31, (.16) (.4) (.29) (.81) (1.14) 9.11 Mar. 31, (.15) (.4) (.47) (.86) (1.37) 9.92 Mar. 31, (.15).72 (1.27) (.48) - (.5) (.45) (.93) (1.43) 1.5 Mar. 31, (.16) (.5) (.38) (.95) (1.38) Mar. 31, (.15) (.12) - (.86) (.98) F1T8 Shares Mar. 31, (.14) 1.38 (1.53).13 - (.4) (.29) (.73) (1.6) 9.8 *Footnotes for the tables are found at the end of the Net Assets per Share section of the Financial Highlights.

7 Net Assets per Share ($) (1) (2) (4) * Increase (decrease) from operations: Dividends: Realized Unrealized increase net investment Net assets Net assets at the beginning of year (2) revenue expenses distributions) (decrease) from operations (2) income ) capital Return of capital (2, 3) at the end of shown (2) $ $ $ $ $ $ $ $ $ $ $ $ I Shares Commencement of operations November 27, 26 Mar. 31, (.5) 1.41 (1.2).72 - (.8) (.51) - (.59) Mar. 31, (.2) (.7) (.75) - (.82) Mar. 31, (1.25) (.34) - (.7) (.65) - (.72) Mar. 31, (.7) (.49) - (.56) Mar. 31, (.14) - - (.14) IT8 Shares Commencement of operations December 22, 211 Mar. 31, (.3).82 (.51).5 - (.5) (.32) (.87) (1.24) 9.84 Mar. 31, (.2) (.5) (.5) (.91) (1.46) 1.57 Mar. 31, (1.24) (.31) - (.5) (.48) (.97) (1.5) 1.56 Mar. 31, (.6) (.39) (.97) (1.42) Mar. 31, (.12) - (.86) (.98) O Shares Commencement of operations October 4, 211 Mar. 31, (.8) 1.4 (.94).77 - (.8) (.55) - (.63) 17.4 Mar. 31, (.5) (.7) (.81) - (.88) Mar. 31, (.3) 1.7 (1.84) (.48) - (.7) (.7) - (.77) Mar. 31, (.3) (.8) (.53) - (.61) Mar. 31, (.2) (.15) - - (.15) OT5 Shares Commencement of operations July 29, 215 Mar. 31, (.4).7 (.43).42 - (.4) (.28) (.46) (.78) 8.69 Mar. 31, (.3) (.4) (.43) (.47) (.94) 9.6 Mar. 31, (.1).57 (1.18) (.45) - (.4) (.4) (.33) (.77) 8.78 OT8 Shares Commencement of operations October 4, 211 Mar. 31, (.5).84 (.56).44 - (.5) (.33) (.89) (1.27) 1.16 Mar. 31, (.4) (.5) (.52) (.94) (1.51) 1.93 Mar. 31, (.2).65 (.66).17 - (.5) (.49) (1.) (1.54) 1.93 Mar. 31, (.2) (.6) (.41) (1.1) (1.48) Mar. 31, (.2) (.13) - (.9) (1.3) P Shares Mar. 31, (.5) 1.33 (1.18).2 - (.5) (.32) - (.37) 9.88 *Footnotes for the tables are found at the end of the Net Assets per Share section of the Financial Highlights.

8 Net Assets per Share ($) (1) (2) (4) Increase (decrease) from operations: Dividends: Realized Unrealized increase net investment Net assets Net assets at the beginning of year (2) revenue expenses distributions) (decrease) from operations (2) income ) capital Return of capital (2, 3) at the end of shown (2) $ $ $ $ $ $ $ $ $ $ $ $ PT8 Shares Mar. 31, (.5).75 (.66).24 - (.5) (.3) (.73) (1.8) 9.17 W Shares Commencement of operations November 27, 26 Mar. 31, (.23) 1.1 (.51).61 - (.7) (.46) - (.53) 14.9 Mar. 31, (.2) (.6) (.67) - (.73) Mar. 31, (.18).79 (1.42) (.57) - (.6) (.59) - (.65) Mar. 31, (.18) (.7) (.45) - (.52) Mar. 31, (.16) (.13) - - (.13) (1) This information is derived from the Fund s audited annual financial statements. (2) Net assets per share and per share are based on the actual number of shares outstanding for the relevant class at the relevant time. The increase (decrease) in net assets from operations per share is based on the weighted average number of shares outstanding for the relevant class over the fiscal year. (3) Dividends are automatically reinvested in additional shares of the Fund. (4) This information is provided for s ended March 31.

9 Ratios and Supplemental Data (1) (5) * net assets (5) Number of shares outstanding (5) before taxes (2) after taxes (2) Effective HST rate for the year (2) Harmonized Trading Portfolio sales tax (2) (3) turnover rate (4) $ s s % % % % % % A Shares Commencement of operations November 27, 26 Mar. 31, ,535 6, Mar. 31, ,9 9, Mar. 31, ,54 9, Mar. 31, ,985 8, Mar. 31, ,447 6, A1 Shares Mar. 31, ,774 2, A2 Shares Mar. 31, 218 4, A3 Shares Mar. 31, 218 3, A4 Shares Mar. 31, 218 2, A5 Shares Mar. 31, *Footnotes for the tables are found at the end of the Financial Highlights section.

10 Ratios and Supplemental Data (1) (5) * net assets (5) Number of shares outstanding (5) before taxes (2) Harmonized sales tax (2) after taxes (2) Effective HST rate for the year (2) Trading (3) Portfolio turnover rate (4) $ s s % % % % % % AT5 Shares Commencement of operations April 15, 28 Mar. 31, Mar. 31, 217 1, Mar. 31, 216 1, Mar. 31, 215 1, Mar. 31, 214 1, A1T5 Shares Mar. 31, AT8 Shares Commencement of operations October 1, 27 Mar. 31, 218 1, Mar. 31, 217 1, Mar. 31, 216 1, Mar. 31, 215 1, Mar. 31, 214 1, A1T8 Shares Mar. 31, E Shares Commencement of operations October 4, 211 Mar. 31, ,747 2, Mar. 31, ,29 2, Mar. 31, ,984 1, Mar. 31, 215 2,181 1, Mar. 31, 214 1, EF Shares Commencement of operations December 5, 214 Mar. 31, 218 5, Mar. 31, 217 4, Mar. 31, 216 2, Mar. 31, 215 5, *Footnotes for the tables are found at the end of the Financial Highlights section.

11 Ratios and Supplemental Data (1) (5) * net assets (5) Number of shares outstanding (5) before taxes (2) Harmonized sales tax (2) after taxes (2) Effective HST rate for the year (2) Trading (3) Portfolio turnover rate (4) $ s s % % % % % % EFT5 Shares Commencement of operations July 29, 215 Mar. 31, Mar. 31, Mar. 31, EFT8 Shares Commencement of operations July 29, 215 Mar. 31, Mar. 31, Mar. 31, ET5 Shares Commencement of operations July 29, 215 Mar. 31, Mar. 31, Mar. 31, ET8 Shares Commencement of operations October 4, 211 Mar. 31, Mar. 31, Mar. 31, Mar. 31, Mar. 31, F Shares Commencement of operations November 27, 26 Mar. 31, 218 8, Mar. 31, , Mar. 31, 216 1, Mar. 31, 215 7, Mar. 31, 214 3, F1 Shares Mar. 31, 218 5, *Footnotes for the tables are found at the end of the Financial Highlights section.

12 Ratios and Supplemental Data (1) (5) * net assets (5) Number of shares outstanding (5) before taxes (2) Harmonized sales tax (2) after taxes (2) Effective HST rate for the year (2) Trading (3) Portfolio turnover rate (4) $ s s % % % % % % F2 Shares Mar. 31, F3 Shares Mar. 31, 218 1, F4 Shares Mar. 31, F5 Shares Mar. 31, FT8 Shares Commencement of operations December 22, 211 Mar. 31, Mar. 31, Mar. 31, Mar. 31, Mar. 31, F1T8 Shares Mar. 31, *Footnotes for the tables are found at the end of the Financial Highlights section.

13 Ratios and Supplemental Data (1) (5) * net assets (5) Number of shares outstanding (5) before taxes (2) Harmonized sales tax (2) after taxes (2) Effective HST rate for the year (2) Trading (3) Portfolio turnover rate (4) $ s s % % % % % % I Shares Commencement of operations November 27, 26 Mar. 31, 218 4, Mar. 31, 217 2, Mar. 31, 216 2, Mar. 31, 215 2, Mar. 31, 214 3, IT8 Shares Commencement of operations December 22, 211 Mar. 31, Mar. 31, Mar. 31, Mar. 31, Mar. 31, O Shares Commencement of operations October 4, 211 Mar. 31, 218 6,645 3, Mar. 31, ,11 3, Mar. 31, ,8 2, Mar. 31, ,63 1, Mar. 31, ,338 1, OT5 Shares Commencement of operations July 29, 215 Mar. 31, Mar. 31, Mar. 31, OT8 Shares Commencement of operations October 4, 211 Mar. 31, Mar. 31, Mar. 31, Mar. 31, Mar. 31, P Shares Mar. 31, 218 1, *Footnotes for the tables are found at the end of the Financial Highlights section.

14 Ratios and Supplemental Data (1) (5) net assets (5) Number of shares outstanding (5) before taxes (2) Harmonized sales tax (2) after taxes (2) Effective HST rate for the year (2) Trading (3) Portfolio turnover rate (4) $ s s % % % % % % PT8 Shares Mar. 31, W Shares Commencement of operations November 27, 26 Mar. 31, 218 3, Mar. 31, 217 6, Mar. 31, 216 5, Mar. 31, 215 5, Mar. 31, 214 5, (1) This information is derived from the Fund s audited annual financial statements. (2) is calculated based on expenses charged to the Fund commissions and other portfolio transaction costs) and is expressed as an annualized percentage of daily average net assets for, including the Fund s proportionate share of any underlying fund(s) expenses, if applicable. The Effective HST tax rate is calculated using the attribution percentage for each province based on shareholder residency and can be different from 13%. (3) The trading represents total commissions and other portfolio transaction costs expressed as an annualized percentage of daily average net assets during, including the Fund s proportionate share of such expenses of any underlying fund(s), if applicable. (4) The Fund s portfolio turnover rate indicates how actively the Fund s portfolio advisor manages its portfolio investments. A portfolio turnover rate of 1% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the fiscal year. The higher a Fund s portfolio turnover rate in a year, the greater the trading costs payable by the Fund in, and the greater the chance of an investor receiving taxable capital in. There is not necessarily a relationship between a higher turnover rate and the performance of a Fund. Portfolio turnover rate is calculated by dividing the lesser of the cost of purchases and the proceeds of sales of portfolio securities for, and excluding cash and short-term investments maturing in less than one year, and before assets acquired from a merger, if applicable, by the average of the monthly fair value of investments during. (5) This information is provided for s ended March 31. (4) This information is provided for s ended March 31.

15 PAST PERFORMANCE This section describes how the Fund has performed in the past. Remember, past returns do not indicate how the Fund will perform in the future. The information shown assumes that made by the Fund in s shown were reinvested in additional shares of the relevant classes of the Fund. In addition, the information does not take into account sales, redemption, distribution or other optional charges that would have reduced returns or performance. Year-by-Year Returns The following charts show the Fund s annual performance for each of s shown and illustrate how the Fund s performance has changed from year to year. In percentage terms, the charts show how much an investment made on the first day of each financial year would have grown or decreased by the last day of each financial year, except where noted. A Shares AT5 Shares AT8 Shares E Shares Mar. 29 Mar. 21 Mar. 211 Mar. 212 Mar. 213 Mar. 214 Mar. 215 Mar. 216 Mar. 217 Mar. 218 Mar. 29 Mar. 21 Mar. 211 Mar. 212 Mar. 213 Mar. 214 Mar. 215 Mar. 216 Mar. 217 Mar. 218 Mar. 29 Mar. 21 Mar. 211 Mar. 212 Mar. 213 Mar. 214 Mar. 215 Mar. 216 Mar. 217 Mar. 218 Mar. 212 Mar. 213 Mar. 214 Mar. 215 Mar. 216 Mar. 217 Mar. 218 EF Shares EFT5 Shares EFT8 Shares ET5 Shares Mar. 215 Mar. 216 Mar. 217 Mar. 218 Mar. 216 Mar. 217 Mar. 218 Mar. 216 Mar. 217 Mar. 218 Mar. 216 Mar. 217 Mar. 218 ET8 Shares F Shares FT8 Shares I Shares Mar. 212 Mar. 213 Mar. 214 Mar. 215 Mar. 216 Mar. 217 Mar. 218 Mar. 29 Mar. 21 Mar. 211 Mar. 212 Mar. 213 Mar. 214 Mar. 215 Mar. 216 Mar. 217 Mar. 218 Mar. 212 Mar. 213 Mar. 214 Mar. 215 Mar. 216 Mar. 217 Mar. 218 Mar. 29 Mar. 21 Mar. 211 Mar. 212 Mar. 213 Mar. 214 Mar. 215 Mar. 216 Mar. 217 Mar. 218 IT8 Shares O Shares OT5 Shares OT8 Shares Mar. 212 Mar. 213 Mar. 214 Mar. 215 Mar. 216 Mar. 217 Mar. 218 Mar. 212 Mar. 213 Mar. 214 Mar. 215 Mar. 216 Mar. 217 Mar. 218 Mar. 216 Mar. 217 Mar. 218 Mar. 212 Mar. 213 Mar. 214 Mar. 215 Mar. 216 Mar. 217 Mar. 218

16 W Shares Mar. 29 Mar. 21 Mar Mar Mar. 213 Mar. 214 Mar. 215 Mar. 216 Mar. 217 Mar return is for the period from April 15, 28 to March 31, return is for the period from October 4, 211 to March 31, return is for the period from December 5, 214 to March 31, return is for the period from July 29, 215 to March 31, return is for the period from December 22, 211 to March 31, 212.

17 Annual Compound Returns The following table shows the Fund s annual compound returns for each year indicated, compared to the Blended Index composed of: (32% - S&P/TSX Composite Return Index, 24% - MSCI World Return Index (CAD), 24% - MSCI World Return Index (LC) and 2% - FTSE TMX Canada Universe Bond Return Index); the S&P/TSX Composite Return Index, the MSCI World Return Index (CAD), the MSCI World Return Index (LC) and the FTSE TMX Canada Universe Bond Return Index. The S&P/TSX Composite Return Index is a float-adjusted market capitalization weighted index which is the principal broad measure of the Canadian equity market. It includes common stocks and income trust units of companies incorporated in Canada which are listed on the Toronto Stock Exchange. The MSCI World Return Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets. The Index consists of the following 23 developed market country indices: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the United Kingdom and the United States of America. The FTSE TMX Canada Universe Bond Return Index is a market capitalization weighted index that measures the performance of the Canadian investment-grade fixed income market. The Index consists of fixed rate bonds denominated in Canadian dollars, with a remaining effective term to maturity of at least one year, rated BBB or higher. The Index is comprised of four main credit or borrower categories: bonds issued by the Government of Canada (including Crown Corporations), Provincial bonds (including provincially-guaranteed securities), Municipal bonds and Corporate bonds. The Corporate sector is further divided into sub-sectors based on major industry groups: Financial, Communication, Industrial, Energy, Infrastructure, Real Estate and Securitization. The Corporate sector is also divided into sub-indices based on credit rating: a combined AAA/AA sector, a single A sector and a BBB sector. A discussion of the performance of the Fund as compared to the benchmark is found in the Results of Operations section of this report. One Year (%) Three Years (%) Five Years (%) Ten Years (%) Since Inception (%) A Shares n/a Blended Index n/a S&P/TSX Composite Return Index n/a MSCI World Return Index n/a MSCI World Return Index (LC) n/a FTSE TMX Canada Universe Bond Return Index n/a AT5 Shares n/a 4.8 Blended Index n/a 6.1 S&P/TSX Composite Return Index n/a 4. MSCI World Return Index n/a 8.7 MSCI World Return Index (LC) n/a 6.8 FTSE TMX Canada Universe Bond Return Index n/a 4.4 AT8 Shares n/a Blended Index n/a S&P/TSX Composite Return Index n/a MSCI World Return Index n/a MSCI World Return Index (LC) n/a FTSE TMX Canada Universe Bond Return Index n/a E Shares n/a 9.5 Blended Index n/a 9.8 S&P/TSX Composite Return Index n/a 6.7 MSCI World Return Index n/a 16. MSCI World Return Index (LC) n/a 12.9 FTSE TMX Canada Universe Bond Return Index n/a 3.3 EF Shares n/a n/a 5.6 Blended Index n/a n/a 6.8 S&P/TSX Composite Return Index n/a n/a 4.3 MSCI World Return Index n/a n/a 11.9 MSCI World Return Index (LC) n/a n/a 8.3 FTSE TMX Canada Universe Bond Return Index n/a n/a 2.5 EFT5 Shares 3.4 n/a n/a n/a 3.9 Blended Index 5.9 n/a n/a n/a 6. S&P/TSX Composite Return Index 1.7 n/a n/a n/a 5.4 MSCI World Return Index 1.6 n/a n/a n/a 8.1 MSCI World Return Index (LC) 1.5 n/a n/a n/a 7.9 FTSE TMX Canada Universe Bond Return Index 1.4 n/a n/a n/a

18 One Year (%) Three Years (%) Five Years (%) Ten Years (%) Since Inception (%) EFT8 Shares 3.5 n/a n/a n/a 3.9 Blended Index 5.9 n/a n/a n/a 6. S&P/TSX Composite Return Index 1.7 n/a n/a n/a 5.4 MSCI World Return Index 1.6 n/a n/a n/a 8.1 MSCI World Return Index (LC) 1.5 n/a n/a n/a 7.9 FTSE TMX Canada Universe Bond Return Index 1.4 n/a n/a n/a 1.5 ET5 Shares 2.2 n/a n/a n/a 2.7 Blended Index 5.9 n/a n/a n/a 6. S&P/TSX Composite Return Index 1.7 n/a n/a n/a 5.4 MSCI World Return Index 1.6 n/a n/a n/a 8.1 MSCI World Return Index (LC) 1.5 n/a n/a n/a 7.9 FTSE TMX Canada Universe Bond Return Index 1.4 n/a n/a n/a 1.5 ET8 Shares n/a 9.3 Blended Index n/a 1.5 S&P/TSX Composite Return Index n/a 7.5 MSCI World Return Index n/a 16.6 MSCI World Return Index (LC) n/a 14.1 FTSE TMX Canada Universe Bond Return Index n/a 3.2 F Shares n/a Blended Index n/a S&P/TSX Composite Return Index n/a MSCI World Return Index n/a MSCI World Return Index (LC) n/a FTSE TMX Canada Universe Bond Return Index n/a FT8 Shares n/a 7.4 Blended Index n/a 9.8 S&P/TSX Composite Return Index n/a 6.7 MSCI World Return Index n/a 16. MSCI World Return Index (LC) n/a 12.9 FTSE TMX Canada Universe Bond Return Index n/a 3.3 I Shares n/a Blended Index n/a S&P/TSX Composite Return Index n/a MSCI World Return Index n/a MSCI World Return Index (LC) n/a FTSE TMX Canada Universe Bond Return Index n/a IT8 Shares n/a 1.3 Blended Index n/a 8.6 S&P/TSX Composite Return Index n/a 5.2 MSCI World Return Index n/a 14.3 MSCI World Return Index (LC) n/a 1.9 FTSE TMX Canada Universe Bond Return Index n/a 3.8 O Shares n/a 11.8 Blended Index n/a 9.8 S&P/TSX Composite Return Index n/a 6.7 MSCI World Return Index n/a 16. MSCI World Return Index (LC) n/a 12.9 FTSE TMX Canada Universe Bond Return Index n/a 3.3 OT5 Shares 4.6 n/a n/a n/a 5. Blended Index 5.9 n/a n/a n/a 6. S&P/TSX Composite Return Index 1.7 n/a n/a n/a 5.4 MSCI World Return Index 1.6 n/a n/a n/a 8.1 MSCI World Return Index (LC) 1.5 n/a n/a n/a 7.9 FTSE TMX Canada Universe Bond Return Index 1.4 n/a n/a n/a 1.5 OT8 Shares n/a 11.8 Blended Index n/a 1.5 S&P/TSX Composite Return Index n/a 7.5 MSCI World Return Index n/a 16.6 MSCI World Return Index (LC) n/a 14.1 FTSE TMX Canada Universe Bond Return Index n/a

19 One Year (%) Three Years (%) Five Years (%) Ten Years (%) Since Inception (%) W Shares n/a Blended Index n/a S&P/TSX Composite Return Index n/a MSCI World Return Index n/a MSCI World Return Index (LC) n/a FTSE TMX Canada Universe Bond Return Index n/a 19

20 SUMMARY OF INVESTMENT PORTFOLIO as at March 31, 218 Category % of Net Assets Category % of Net Assets Top Holdings % of Net Assets Country allocation Underlying Fund(s) Cash & Equivalents Other Net Assets (Liabilities)....2 Sector allocation Underlying Fund(s) Cash & Equivalents Other Net Assets (Liabilities)....2 Select U.S. Equity Managed Fund (Class I) Select International Equity Managed Fund (Class I) Select Canadian Equity Managed Fund (Class I) CI Income Fund (Class C) Cash & Equivalents Net Assets (in $ s) $252,131 The summary of investment portfolio may change due to ongoing portfolio transactions of the Fund and updates will be available on a quarterly basis. A NOTE ON FORWARD-LOOKING STATEMENTS This report may contain forward-looking statements about the Fund, its future performance, strategies or prospects, and possible future Fund action. The words may, could, should, would, suspect, outlook, believe, plan, anticipate, estimate, expect, intend, forecast, objective, and similar expressions are intended to identify forward-looking statements. Forward-looking statements are not guarantees of future performance. Forward-looking statements involve inherent risks and uncertainties, both about the Fund and general economic factors, so it is possible that predictions, forecasts, projections and other forward-looking statements will not be achieved. We caution you not to place undue reliance on these statements as a number of important factors could cause actual events or results to differ materially from those expressed or implied in any forward-looking statement made by the Fund. These factors include, but are not limited to, general economic, political and market factors in Canada, the United States and internationally, interest and foreign exchanges rates, global equity and capital markets, business competition, technological changes, changes in laws and regulations, judicial or regulatory judgments, legal proceedings and catastrophic events. The above list of important factors that may affect future results is not exhaustive. Before making any investment decisions, we encourage you to consider these and other factors carefully. All opinions contained in forward-looking statements are subject to change without notice and are provided in good faith but without legal responsibility.