CI Segregated Funds. Annual Financial Statements as at December 31, managed by CI Investments Inc. issued by Unity Life of Canada

Transcription

1 CI Segregated Funds 2006 Annual Financial Statements as at December 31, 2006 managed by CI Investments Inc. issued by Unity Life of Canada

2 A look inside Overview...1 Equity Funds CI Global Segregated Fund...2 CI Global Value Segregated Fund...5 CI Harbour Segregated Fund...8 CI Harbour Growth & Income Segregated Fund...11 CI Synergy American Segregated Fund...14 Income Funds CI Money Market Segregated Fund...17 Notes to the Financial Statements...20 Auditor s Report and Legal Notice...21

3 2 Queen Street East, Twentieth Floor Toronto, Ontario M5C 3G7 Telephone: Toll Free: Facsimile: CI Investments is pleased to present the 2006 Annual Financial ABOUT CI INVESTMENTS Statements for your segregated fund holdings. Inside is important information about each fund, including its financial statements for the period and a complete list of portfolio holdings as at December 31, Experience. Strength. Diversity. CI Investments has been investing on behalf of Canadians since 1965 and has grown to become one of Canada s largest fund companies, If you would prefer to receive future annual and semiannual financial statements and other important documents electronically, you may sign up at InvestorOnline at This service gives you easy online access to uptodate information about your account, and allows you to view and print documents such as this report and your account statements, trade confirmations and tax receipts. managing about $53 billion in assets. Two million Canadians have placed their trust in CI to help them achieve their financial goals. CI is a corporation controlled by CI Financial Income Fund, a diversified wealth management firm listed on the Toronto Stock Exchange. CI Financial had $81.6 billion in feeearning assets at December 31, If you have any questions about this report or CI s funds, please contact your advisor or CI Client Services at or service@ci.com. CI Investments is known for providing the industry s widest selection of investment products and leading portfolio managers. Our portfolio management expertise is available through several different platforms Thank you for investing with us. including mutual and segregated funds, managed solutions and alternative investments. Our products are supported by a complete suite of investment services. CI is proud to partner with financial advisors across Canada who offer our funds to their clients. We believe investors are most successful when they follow a sound financial plan developed with the assistance of a qualified advisor. For more information on CI, please visit us online at 1

4 CI Global Segregated Fund Underlying Fund Information (unaudited) Top 25 Holdings of CI Global Fund Portfolio Exposure of CI Global Fund No. of Shares/ Average Market Face Amount Investment Cost ($) Value ($) Sector Allocation (%) 1,188,600 Microsoft Corp. 45,137,701 41,381, ,700 Everest Re Group Ltd. 26,238,748 27,533, ,298 Alstom RGPT 14,872,909 25,973, ,900 Commerzbank AG 18,082,146 25,130, ,200 Endurance Specialty Holdings Ltd. 21,369,801 23,764, ,600 Atlas Copco AB, Series A 15,954,434 22,235, ,300 Petroleum GeoServices ASA 12,795,581 22,173,059 1,041,689 ABB Ltd. 13,299,851 21,771, ,900 GEA Group AG 18,125,828 21,756,301 1,255,849 Sandvik AB 16,368,951 21,283, ,800 Sepracor Inc. 14,154,343 20,807, ,200 Yara International ASA 12,979,659 19,807, ,900 SLM Corp. 19,307,785 19,441,584 80,687 Allianz AG, Registered Shares 13,352,129 19,239, ,200 Jarden Corp. 17,085,531 19,154, ,846 Sanpaolo IMI SpA 16,370,735 18,959, ,761 Statoil ASA 11,611,482 18,875,185 1,124,900 Alcatel SA 15,442,109 18,873, ,625 Mediobanca SpA 15,558,003 18,842, ,900 KBC Groupe NV 15,639,313 18,575, ,200 SAP AG 16,433,987 18,541, ,700 United Technologies Corp. 16,940,227 18,493, ,800 Cisco Systems Inc. 12,988,528 18,316,234 1,543,000 Hutchison Whampoa Ltd. 17,541,274 18,283, ,200 Xstrata PLC 15,201,866 18,177,687 U.S.A Japan Germany France Italy Switzerland U.K Bermuda Norway South Korea Hong Kong Sweden Cash & Equivalents Singapore Taiwan Belgium Thailand Brazil Malaysia Indonesia Other Assets Israel Russia Argentina Peru CIG 025

5 CI Global Segregated Fund Financial Statements Statement of Investment Portfolio as at December 31, 2006 No. of Average Market Units Investment Cost ($) Value ($) 692,864 CI Global Fund (Class A) 9,272,560 10,275,171 Total Investments (99.7%) 9,272,560 10,275,171 Other Assets (net) (0.3%) 30,953 Total Net Assets (100.0%) 10,306,124 Statements of Net Assets as at December 31 (in $000 s except for per unit amounts and units outstanding) Statements of Operations for the years ended December 31 ($000 s) Statements of Changes in Net Assets for the years ended December 31 ($000 s) Assets Investments at market value Cash Receivable for unit subscriptions Receivable for securities sold Receivable for dividends and accrued interest 10, , ,331 11,396 Liabilities Management fees payable Administration fees payable Insurance fees payable Payable for securities purchased Payable for unit redemptions Net assets and unitholders equity ,306 11,394 Income Income distribution from investments Interest Expenses (Note 4) (Management expense ratios Schedule 3) Management fees Administrative fees Insurance fees Custody fees Legal fees Audit fees Goods and services tax Net income (loss) for the year (102) (123) Net assets, beginning of year Capital transactions Proceeds from units issued Payments for units redeemed from operations Net assets, end of year 11,394 13, (3,072) (3,640) (2,574) (3,238) 1, ,306 11,394 Net asset value per unit Schedule 1 Number of units outstanding (Unit transactions Schedule 2) , ,927 Realized and unrealized gain (loss) on investments Realized gain (loss) on investments (a) Capital gain distribution from investments Change in unrealized appreciation (depreciation) 1 (348) of investments Net gain (loss) on investments from operations ( from operations per unit Schedule 4) 1,587 1,185 1, , (a) Realized gain (loss) on investments Proceeds from sale of investments Investments at cost, beginning of year Investments purchased Investments at cost, end of year Cost of investments sold Realized gain (loss) on investments 2,693 3,356 11,962 15, ,965 15,666 9,273 11,962 2,692 3,704 1 (348) The accompanying notes are an integral part of these financial statements. Percentages shown in brackets in the Statement of Investment Portfolio relate investments at market value to total net assets of the Fund. 3

6 CI Global Segregated Fund Financial Statements Supplementary Schedules (for the years ended December 31) Schedule Net asset value per unit, end of year ($) Schedule 2 Unit transactions Balance, beginning of year Units issued for cash Units redeemed Balance, end of year 907,927 1,178,612 37,764 33,709 (233,329) (304,394) 712, ,927 Schedule 3 Management expense ratios 1 (%) Management and operating expenses Goods and services tax expenses Total management expense ratio Schedule 4 from operations per unit 3 ($) Management expense information is calculated based on expenses charged directly to the Fund plus, if applicable, expenses of the underlying mutual fund, calculated on a weighted average basis on the percentage weighting of the underlying mutual fund and is expressed as an annualized percentage of average net assets for the year. 2 Effective fiscal 2005, the fiscal year end of the underlying mutual fund changed from December 31 to March 31, As a result, the MER of the underlying mutual fund was based on the most recent audited MER at December 31, It is expected that the MER of the underlying mutual fund at December 31, 2005 would have been less than the prior year MER due to a decline in fees that occurred in September For fiscal 2006, the MER of the underlying mutual fund was based on the most recent MER at December 31, from operations per unit is calculated by dividing the increase (decrease) in net assets from operations of the Fund by the weighted average number of units outstanding during the year. For inception date of the Fund, please refer to note 1 in the Notes to the Financial Statements. The accompanying notes are an integral part of these financial statements. 4

7 CI Global Value Segregated Fund Underlying Fund Information (unaudited) Top 25 Holdings of CI Global Value Fund Portfolio Exposure of CI Global Value Fund No. of Shares/ Average Market Face Amount Investment Cost ($) Value ($) Sector Allocation (%) 23,900 Allianz AG, Registered Shares 4,013,880 5,698, ,680 Sprint Nextel Corp. 5,795,886 5,653,323 48,660 AMBAC Financial Group Inc. 4,062,589 5,053,396 12,110 Nestle SA, Registered Shares 4,073,920 5,015, ,730 Royal Bank of Scotland Group PLC 3,853,951 4,993, ,940 Cadbury Schweppes PLC 4,118,901 4,853,313 81,520 Wyeth 4,326,816 4,839, ,060 Microsoft Corp. 3,362,781 4,667, ,750 Vodafone Group PLC, ADR 3,867,105 4,591, ,550 GlaxoSmithKline PLC 4,268,328 4,589, ,000 WPP Group PLC 3,790,652 4,556,455 77,700 JPMorgan Chase & Co. 3,696,265 4,375, ,839 Kingfisher PLC 4,554,324 4,274,000 82,554 ING Groep NV 3,007,150 4,268, ,689 Diageo PLC 3,077,276 3,998,669 44,010 Molson Coors Brewing Co., Class B (USD) 3,334,655 3,922, ,710 Sumitomo Trust & Banking Co. Ltd. 2,564,766 3,907, ,840 Tyco International Ltd. 3,605,752 3,893, ,850 Telefonaktiebolaget LM Ericsson, Class B 2,914,110 3,851,679 33,016 Liberty Media Holding Corp., Capital Series A 3,369,412 3,771,739 80,240 Vivendi Universal SA 2,285,483 3,657, ,850 ImClone Systems Inc. 5,409,858 3,489, ,160 Nipponkoa Insurance Co. Ltd. 3,011,662 3,432,081 44,320 Torchmark Corp. 2,375,452 3,294,791 43,000 Metro AG 2,860,054 3,197,614 U.S.A U.K Japan Germany France Netherlands Italy Switzerland Sweden Bermuda South Korea Cash & Equivalents Taiwan Thailand Singapore Hong Kong Other Assets CIG 024

8 CI Global Value Segregated Fund Financial Statements Statement of Investment Portfolio as at December 31, 2006 No. of Average Market Units Investment Cost ($) Value ($) 190,648 CI Global Value Fund (Class A) 2,131,018 2,745,328 Total Investments (99.9%) 2,131,018 2,745,328 Other Assets (net) (0.1%) 1,651 Total Net Assets (100.0%) 2,746,979 Statements of Net Assets as at December 31 (in $000 s except for per unit amounts and units outstanding) Statements of Operations for the years ended December 31 ($000 s) Statements of Changes in Net Assets for the years ended December 31 ($000 s) Assets Investments at market value Cash Receivable for unit subscriptions Receivable for securities sold Receivable for dividends and accrued interest Liabilities Management fees payable Administration fees payable Insurance fees payable Payable for securities purchased Payable for unit redemptions Net assets and unitholders equity 2,745 3, ,749 3, ,747 3,097 Income Income distribution from investments Interest Expenses (Note 4) (Management expense ratios Schedule 3) Management fees Administrative fees Insurance fees Custody fees Legal fees Audit fees Goods and services tax Net income (loss) for the year (1) (17) Net assets, beginning of year Capital transactions Proceeds from units issued Payments for units redeemed from operations Net assets, end of year 3,097 4, (804) (1,832) (706) (1,667) ,747 3,097 Net asset value per unit Schedule 1 Number of units outstanding (Unit transactions Schedule 2) , ,567 Realized and unrealized gain (loss) on investments Realized gain (loss) on investments (a) Capital gain distribution from investments Change in unrealized appreciation (depreciation) of investments Net gain (loss) on investments from operations ( from operations per unit Schedule 4) 242 (129) (a) Realized gain (loss) on investments Proceeds from sale of investments Investments at cost, beginning of year Investments purchased Investments at cost, end of year Cost of investments sold Realized gain (loss) on investments 736 1,694 2,725 4, ,752 4,244 2,131 2, , The accompanying notes are an integral part of these financial statements. Percentages shown in brackets in the Statement of Investment Portfolio relate investments at market value to total net assets of the Fund. 6

9 CI Global Value Segregated Fund Financial Statements Supplementary Schedules (for the years ended December 31) Schedule Net asset value per unit, end of year ($) Schedule 2 Unit transactions Balance, beginning of year Units issued for cash Units redeemed Balance, end of year 277, ,364 8,485 15,286 (69,406) (169,083) 216, ,567 Schedule 3 Management expense ratios 1 (%) Management and operating expenses Goods and services tax expenses Total management expense ratio Schedule 4 from operations per unit 3 ($) Management expense information is calculated based on expenses charged directly to the Fund plus, if applicable, expenses of the underlying mutual fund, calculated on a weighted average basis on the percentage weighting of the underlying mutual fund and is expressed as an annualized percentage of average net assets for the year. 2 Effective fiscal 2005, the fiscal year end of the underlying mutual fund changed from December 31 to March 31, As a result, the MER of the underlying mutual fund was based on the most recent audited MER at December 31, It is expected that the MER of the underlying mutual fund at December 31, 2005 would have been less than the prior year MER due to a decline in fees that occurred in September For fiscal 2006, the MER of the underlying mutual fund was based on the most recent MER at December 31, from operations per unit is calculated by dividing the increase (decrease) in net assets from operations of the Fund by the weighted average number of units outstanding during the year. For inception date of the Fund, please refer to note 1 in the Notes to the Financial Statements. The accompanying notes are an integral part of these financial statements. 7

10 CI Harbour Segregated Fund Underlying Fund Information (unaudited) Top 25 Holdings of Harbour Fund Portfolio Exposure of Harbour Fund No. of Shares/ Average Market Face Amount Investment Cost ($) Value ($) Sector Allocation (%) 5,000,000 Royal Bank of Scotland Group PLC 179,815, ,532,195 2,350,000 Suncor Energy Inc. 49,816, ,706,500 3,600,000 Royal Bank of Canada 80,146, ,800,000 2,000,000 Canadian Imperial Bank of Commerce 126,958, ,600,000 7,500,000 BHP Billiton Ltd. 127,283, ,657,818 2,500,000 TorontoDominion Bank 98,525, ,300,000 2,800,000 Rio Tinto PLC 179,189, ,769,294 3,300,000 Bank of Nova Scotia 81,072, ,930,000 3,000,000 Alcan Inc. 125,319, ,340,000 8,400,000 Talisman Energy Inc. 45,675, ,320,000 2,500,000 Citigroup Inc. 143,361, ,358,483 2,800,000 EnCana Corp. 79,160, ,248,000 3,000,000 Canadian National Railway Co. 65,638, ,210, ,000 Potash Corp. of Saskatchewan 37,011, ,900,000 3,400,000 Canadian Oil Sands Trust 25,132, ,874,000 2,300,000 PetroCanada 38,246, ,825,000 4,200,000 Diageo PLC 66,764,417 96,138,917 5,200,000 Ensign Energy Services Inc. 35,393,270 95,628,000 1,000,000 Morgan Stanley 68,292,951 94,943,277 2,600,000 TJX Cos. Inc. 68,943,599 86,457,495 2,600,000 Cisco Systems Inc. 57,233,908 82,850,047 2,200,000 Ross Stores Inc. 65,069,260 75,157,112 5,600,000 Yellow Pages Income Fund 77,609,982 72,072,000 2,500,000 PattersonUTI Energy Inc. 92,492,564 67,712,523 2,100,000 AGF Management Ltd., Class B 28,290,424 58,800,000 Financials Energy Materials Cash & Equivalents Consumer Discretionary Consumer Staples Industrials Information Technology Other Assets Health Care Warrants CIG 021

11 CI Harbour Segregated Fund Financial Statements Statement of Investment Portfolio as at December 31, 2006 No. of Average Market Units Investment Cost ($) Value ($) 1,250,215 Harbour Fund (Class A) 13,125,637 26,117,000 Total Investments (99.8%) 13,125,637 26,117,000 Other Assets (net) (0.2%) 46,436 Total Net Assets (100.0%) 26,163,436 Statements of Net Assets as at December 31 (in $000 s except for per unit amounts and units outstanding) Statements of Operations for the years ended December 31 ($000 s) Statements of Changes in Net Assets for the years ended December 31 ($000 s) Assets Investments at market value Cash Receivable for unit subscriptions Receivable for securities sold Receivable for dividends and accrued interest 26, , ,249 29,690 Liabilities Management fees payable Administration fees payable Insurance fees payable Payable for securities purchased Payable for unit redemptions Net assets and unitholders equity ,163 29,689 Income Income distribution from investments Interest Expenses (Note 4) (Management expense ratios Schedule 3) Management fees Administrative fees Insurance fees Custody fees Legal fees Audit fees Goods and services tax Net income (loss) for the year (196) (255) Net assets, beginning of year Capital transactions Proceeds from units issued Payments for units redeemed from operations Net assets, end of year 29,689 28,799 2,035 2,296 (9,225) (7,307) (7,190) (5,011) 3,664 5,901 26,163 29,689 Net asset value per unit Schedule Realized and unrealized gain (loss) on investments Number of units outstanding (Unit transactions Schedule 2) 1,049,613 1,359,338 Realized gain (loss) on investments (a) Capital gain distribution from investments 3,817 1,005 2,207 Change in unrealized appreciation (depreciation) of investments Net gain (loss) on investments from operations ( from operations per unit Schedule 4) (962) 3,949 3,860 6,156 3,664 5,901 (a) Realized gain (loss) on investments Proceeds from sale of investments Investments at cost, beginning of year Investments purchased Investments at cost, end of year Cost of investments sold Realized gain (loss) on investments 7,625 5,774 15,718 18,755 1, ,934 19,285 13,126 15,718 3,808 3,567 3,817 2,207 The accompanying notes are an integral part of these financial statements. Percentages shown in brackets in the Statement of Investment Portfolio relate investments at market value to total net assets of the Fund. 9

12 CI Harbour Segregated Fund Financial Statements Supplementary Schedules (for the years ended December 31) Schedule Net asset value per unit, end of year ($) Schedule 2 Unit transactions Balance, beginning of year Units issued for cash Units redeemed Balance, end of year 1,359,338 1,614,547 86, ,721 (396,024) (370,930) 1,049,613 1,359,338 Schedule 3 Management expense ratios 1 (%) Management and operating expenses Goods and services tax expenses Total management expense ratio Schedule 4 from operations per unit 3 ($) Management expense information is calculated based on expenses charged directly to the Fund plus, if applicable, expenses of the underlying mutual fund, calculated on a weighted average basis on the percentage weighting of the underlying mutual fund and is expressed as an annualized percentage of average net assets for the year. 2 Effective fiscal 2005, the fiscal year end of the underlying mutual fund changed from December 31 to March 31, As a result, the MER of the underlying mutual fund was based on the most recent audited MER at December 31, It is expected that the MER of the underlying mutual fund at December 31, 2005 would have been less than the prior year MER due to a decline in fees that occurred in September For fiscal 2006, the MER of the underlying mutual fund was based on the most recent MER at December 31, from operations per unit is calculated by dividing the increase (decrease) in net assets from operations of the Fund by the weighted average number of units outstanding during the year. For inception date of the Fund, please refer to note 1 in the Notes to the Financial Statements. The accompanying notes are an integral part of these financial statements. 10

13 CI Harbour Growth & Income Segregated Fund Underlying Fund Information (unaudited) Top 25 Holdings of Harbour Growth & Income Fund Portfolio Exposure of Harbour Growth & Income Fund No. of Shares/ Average Market Face Amount Investment Cost ($) Value ($) Sector Allocation (%) 1,800,000 Canadian Imperial Bank of Commerce 131,023, ,940,000 3,000,000 Royal Bank of Canada 92,625, ,500,000 2,300,000 TorontoDominion Bank 103,092, ,356,000 3,500,000 Royal Bank of Scotland Group PLC 125,747, ,272,536 2,400,000 Rio Tinto PLC 153,530, ,945,109 1,550,000 Suncor Energy Inc. 61,947, ,274,500 2,700,000 Bank of Nova Scotia 95,927, ,670,000 2,000,000 Citigroup Inc. 112,229, ,886,786 65,000,000 Canadian Government Bond % 12/01/ ,103, ,891,044 5,400,000 Talisman Energy Inc. 52,580, ,920,000 1,980,000 EnCana Corp. 66,567, ,246,800 4,000,000 BHP Billiton Ltd. 68,296,160 93,150,836 1,600,000 Alcan Inc. 62,561,574 90,848,000 7,000,000 Yellow Pages Income Fund 92,060,240 90,090,000 1,700,000 Canadian National Railway Co. 40,405,169 85,119, ,000 Potash Corp. of Saskatchewan 29,184,790 83,500,000 75,000,000 Canadian Government Bond 6% 06/01/ ,645,000 81,042,750 75,000,000 Canadian Government Bond 5.5% 06/01/ ,057,500 78,583,500 75,000,000 Canadian Government Bond 5.5% 06/01/ ,925,000 77,588,250 1,500,000 PetroCanada 40,547,528 71,625, ,000 Morgan Stanley 46,663,423 66,460,294 1,750,000 Canadian Oil Sands Trust 16,213,082 57,067,500 2,400,000 Diageo PLC 39,339,030 54,936,524 1,500,000 Ross Stores Inc. 44,343,247 51,243,485 3,000,000 Cott Corp. (USD) 41,284,971 50,070,000 Cash & Equivalents Financials Energy Materials Government Bonds Consumer Discretionary Consumer Staples Industrials Information Technology Other Assets CIG 022

14 CI Harbour Growth & Income Segregated Fund Financial Statements Statement of Investment Portfolio as at December 31, 2006 No. of Average Market Units Investment Cost ($) Value ($) 1,314,497 Harbour Growth & Income Fund (Class A) 13,726,444 23,674,086 Total Investments (100.1%) 13,726,444 23,674,086 Other Assets (net) (0.1%) (10,689) Total Net Assets (100.0%) 23,663,397 Statements of Net Assets as at December 31 (in $000 s except for per unit amounts and units outstanding) Statements of Operations for the years ended December 31 ($000 s) Statements of Changes in Net Assets for the years ended December 31 ($000 s) Assets Investments at market value Cash Receivable for unit subscriptions Receivable for securities sold Receivable for dividends and accrued interest 23, , ,714 24,902 Liabilities Management fees payable Administration fees payable Insurance fees payable Payable for securities purchased Payable for unit redemptions Net assets and unitholders equity ,663 24,889 Income Income distribution from investments Interest Expenses (Note 4) (Management expense ratios Schedule 3) Management fees Administrative fees Insurance fees Custody fees Legal fees Audit fees Goods and services tax Net income (loss) for the year (122) Net assets, beginning of year Capital transactions Proceeds from units issued Payments for units redeemed from operations Net assets, end of year 24,889 25,252 2,230 2,928 (5,842) (7,101) (3,612) (4,173) 2,386 3,810 23,663 24,889 Net asset value per unit Schedule Realized and unrealized gain (loss) on investments Number of units outstanding (Unit transactions Schedule 2) 1,223,467 1,419,158 Realized gain (loss) on investments (a) Capital gain distribution from investments 1, , Change in unrealized appreciation (depreciation) of investments Net gain (loss) on investments from operations ( from operations per unit Schedule 4) (283) 2,135 2,369 3,932 2,386 3,810 (a) Realized gain (loss) on investments Proceeds from sale of investments Investments at cost, beginning of year Investments purchased Investments at cost, end of year Cost of investments sold Realized gain (loss) on investments 4,238 5,091 14,612 17,095 1, ,122 17,927 13,726 14,612 2,396 3,315 1,842 1,776 The accompanying notes are an integral part of these financial statements. Percentages shown in brackets in the Statement of Investment Portfolio relate investments at market value to total net assets of the Fund. 12

15 CI Harbour Growth & Income Segregated Fund Financial Statements Supplementary Schedules (for the years ended December 31) Schedule Net asset value per unit, end of year ($) Schedule 2 Unit transactions Balance, beginning of year Units issued for cash Units redeemed Balance, end of year 1,419,158 1,675, , ,010 (316,297) (434,968) 1,223,467 1,419,158 Schedule 3 Management expense ratios 1 (%) Management and operating expenses Goods and services tax expenses Total management expense ratio Schedule 4 from operations per unit 3 ($) Management expense information is calculated based on expenses charged directly to the Fund plus, if applicable, expenses of the underlying mutual fund, calculated on a weighted average basis on the percentage weighting of the underlying mutual fund and is expressed as an annualized percentage of average net assets for the year. 2 Effective fiscal 2005, the fiscal year end of the underlying mutual fund changed from December 31 to March 31, As a result, the MER of the underlying mutual fund was based on the most recent audited MER at December 31, It is expected that the MER of the underlying mutual fund at December 31, 2005 would have been less than the prior year MER due to a decline in fees that occurred in September For fiscal 2006, the MER of the underlying mutual fund was based on the most recent MER at December 31, from operations per unit is calculated by dividing the increase (decrease) in net assets from operations of the Fund by the weighted average number of units outstanding during the year. For inception date of the Fund, please refer to note 1 in the Notes to the Financial Statements. The accompanying notes are an integral part of these financial statements. 13

16 CI Synergy American Segregated Fund Underlying Fund Information (unaudited) Top 25 Holdings of Synergy American Fund Portfolio Exposure of Synergy American Fund No. of Shares/ Average Market Face Amount Investment Cost ($) Value ($) Sector Allocation (%) 125,300 Bank of America Corp. 7,023,143 7,799, ,150 Corrections Corp. of America 4,281,960 6,494,426 71,900 Chevron Corp. 5,558,311 6,164,151 56,300 Merrill Lynch & Co. Inc. 4,394,028 6,111, ,900 HewlettPackard Co. 4,032,656 5,614, ,900 Thermo Fisher Scientific Inc. 4,436,202 5,433, ,200 McDonald's Corp. 4,017,587 5,334, ,600 CVS Corp. 4,892,905 5,283, ,400 Coach Inc. 3,160,265 5,229, ,600 Qualcomm Inc. 5,397,671 5,181,601 88,100 JPMorgan Chase & Co. 3,970,108 4,961, ,100 News Corp., Class A 4,183,991 4,936, ,200 MEMC Electronic Materials Inc. 2,567,625 4,800,830 63,200 Loews Corp Carolina Group 3,733,242 4,769,088 97,500 Comcast Corp., Special Class A 3,661,467 4,760,922 59,500 McGrawHill Cos. Inc. 4,103,526 4,718,820 79,000 Wyeth 4,516,302 4,690,242 53,400 Burlington Northern Santa Fe Corp. 3,387,994 4,595, ,900 CB Richard Ellis Group Inc., Class A 1,622,994 4,525,144 56,500 Devon Energy Corp. 3,196,935 4,418,972 57,000 NII Holdings Inc., Class B 3,449,937 4,282,626 57,400 PepsiCo Inc. 3,842,274 4,186,190 38,900 Union Pacific Corp. 3,978,080 4,173, ,300 Wells Fargo & Co. 3,771,032 4,158,555 50,800 Becton Dickinson & Co. 3,497,754 4,155,001 Financials Consumer Discretionary Information Technology Industrials Health Care Consumer Staples Cash & Equivalents Energy Materials Telecommunication Services Utilities Other Assets CIG 023

17 CI Synergy American Segregated Fund Financial Statements Statement of Investment Portfolio as at December 31, 2006 No. of Average Market Units Investment Cost ($) Value ($) 235,065 Synergy American Fund (Class A) 3,992,569 3,269,759 Total Investments (99.9%) 3,992,569 3,269,759 Other Assets (net) (0.1%) 1,993 Total Net Assets (100.0%) 3,271,752 Statements of Net Assets as at December 31 (in $000 s except for per unit amounts and units outstanding) Statements of Operations for the years ended December 31 ($000 s) Statements of Changes in Net Assets for the years ended December 31 ($000 s) Assets Investments at market value Cash Receivable for unit subscriptions Receivable for securities sold Receivable for dividends and accrued interest Liabilities Management fees payable Administration fees payable Insurance fees payable Payable for securities purchased Payable for unit redemptions Net assets and unitholders equity 3,270 3, ,274 3, ,272 3,460 Income Income distribution from investments Interest Expenses (Note 4) (Management expense ratios Schedule 3) Management fees Administrative fees Insurance fees Custody fees Legal fees Audit fees Goods and services tax Net income (loss) for the year (29) (37) Net assets, beginning of year Capital transactions Proceeds from units issued Payments for units redeemed from operations Net assets, end of year 3,460 4, (670) (1,567) (563) (1,444) ,272 3,460 Net asset value per unit Schedule 1 Number of units outstanding (Unit transactions Schedule 2) , ,624 Realized and unrealized gain (loss) on investments Realized gain (loss) on investments (a) Capital gain distribution from investments (181) (621) Change in unrealized appreciation (depreciation) of investments Net gain (loss) on investments from operations ( from operations per unit Schedule 4) (a) Realized gain (loss) on investments Proceeds from sale of investments Investments at cost, beginning of year Investments purchased Investments at cost, end of year Cost of investments sold Realized gain (loss) on investments 577 1,481 4,751 6,853 4,751 6,853 3,993 4, ,102 (181) (621) The accompanying notes are an integral part of these financial statements. Percentages shown in brackets in the Statement of Investment Portfolio relate investments at market value to total net assets of the Fund. 15

18 CI Synergy American Segregated Fund Financial Statements Supplementary Schedules (for the years ended December 31) Schedule Net asset value per unit, end of year ($) Schedule 2 Unit transactions Balance, beginning of year Units issued for cash Units redeemed Balance, end of year 327, ,049 9,719 12,024 (60,667) (152,449) 276, ,624 Schedule 3 Management expense ratios 1 (%) Management and operating expenses Goods and services tax expenses Total management expense ratio Schedule 4 from operations per unit 3 ($) Management expense information is calculated based on expenses charged directly to the Fund plus, if applicable, expenses of the underlying mutual fund, calculated on a weighted average basis on the percentage weighting of the underlying mutual fund and is expressed as an annualized percentage of average net assets for the year. 2 Effective fiscal 2005, the fiscal year end of the underlying mutual fund changed from December 31 to March 31, As a result, the MER of the underlying mutual fund was based on the most recent audited MER at December 31, It is expected that the MER of the underlying mutual fund at December 31, 2005 would have been less than the prior year MER due to a decline in fees that occurred in September For fiscal 2006, the MER of the underlying mutual fund was based on the most recent MER at December 31, from operations per unit is calculated by dividing the increase (decrease) in net assets from operations of the Fund by the weighted average number of units outstanding during the year. For inception date of the Fund, please refer to note 1 in the Notes to the Financial Statements. The accompanying notes are an integral part of these financial statements. 16

19 CI Money Market Segregated Fund Underlying Fund Information (unaudited) Top 25 Holdings of CI Money Market Fund Portfolio Exposure of CI Money Market Fund No. of Shares/ Average Market Face Amount Investment Cost ($) Value ($) Sector Allocation (%) 31,600,000 HSBC Bank Canada BDN 4.33% 01/23/ ,510,970 31,510,970 31,200,000 CIBC BA 4.31% 02/15/ ,028,093 31,028,093 30,100,000 Royal Bank of Canada BA 4.3% 01/02/ ,089,390 30,089,390 29,300,000 Province of Nova Scotia Prom. Note 4.2% 01/18/ ,236,178 29,236,178 28,100,000 Merrill Lynch 4.43% 11/09/ ,100,000 28,100,000 27,100,000 Province of Ontario TBill 4.18% 02/12/ ,964,565 26,964,565 25,600,000 Canadian Imperial Bank of Commerce, % 07/14/ ,605,120 25,601,152 25,600,000 Credit Agricole SA 4.39% 10/06/ ,600,000 25,600,000 25,400,000 General Electric Capital Corp., % 08/27/ ,448,489 25,400,000 25,400,000 Government of Canada TBill 4.15% 01/11/ ,365,694 25,365,694 23,900,000 Transcanada Pipelines 4.34% 01/19/ ,843,323 23,843,323 22,800,000 Bank of Montreal BDN 4.3% 01/24/ ,733,066 22,733,066 22,400,000 Bear Stearns Co. Inc., % 10/02/ ,400,000 22,400,000 22,150,000 Alcan Aluminum Ltd. 4.38% 01/16/ ,105,042 22,105,042 19,500,000 Government of Canada TBill 4.17% 03/08/ ,349,823 19,349,823 19,200,000 HBOS Treasury Services PLC % 09/29/ ,200,000 19,200,000 18,800,000 HSBC Bank of Canada 4.37% 02/11/ ,800,000 18,800,000 18,700,000 Honda Canada Finance Inc., % 08/25/ ,700,000 18,700,000 18,100,000 Arkle Master FRN % 11/17/ ,100,000 18,100,000 17,500,000 Citigroup Finance Canada Inc., % 10/24/ ,505,198 17,500,000 17,400,000 Bank of Montreal % 09/14/ ,400,000 17,400,000 16,500,000 Greater Toronto Airport % 10/24/ ,500,000 16,500,000 16,500,000 Greater Toronto Airports Authority % 05/18/ ,507,085 16,500,000 16,100,000 Woodbridge Finance Corp., % 09/08/ ,100,000 16,100,000 15,900,000 Government of Canada TBill 4.16% 01/25/ ,853,291 15,853,291 Bonds Short Term Notes Other Assets Cash CIG 020

20 CI Money Market Segregated Fund Financial Statements Statement of Investment Portfolio as at December 31, 2006 No. of Average Market Units Investment Cost ($) Value ($) 132,263 CI Money Market Fund (Class A) 1,322,631 1,322,631 Total Investments (99.4%) 1,322,631 1,322,631 Other Assets (net) (0.6%) 7,765 Total Net Assets (100.0%) 1,330,396 Statements of Net Assets as at December 31 (in $000 s except for per unit amounts and units outstanding) Statements of Operations for the years ended December 31 ($000 s) Statements of Changes in Net Assets for the years ended December 31 ($000 s) Assets Investments at market value Cash Receivable for unit subscriptions Receivable for securities sold Receivable for dividends and accrued interest Liabilities Management fees payable Administration fees payable Insurance fees payable Payable for securities purchased Payable for unit redemptions Net assets and unitholders equity 1,323 2, ,336 2, ,330 2,148 Income Income distribution from investments Interest Expenses (Note 4) (Management expense ratios Schedule 3) Management fees Administrative fees Insurance fees Custody fees Legal fees Audit fees Goods and services tax Net income (loss) for the year Net assets, beginning of year Capital transactions Proceeds from units issued Payments for units redeemed from operations Net assets, end of year 2,148 2,566 1,613 3,124 (2,478) (3,570) (865) (446) ,330 2,148 Net asset value per unit Schedule 1 Number of units outstanding (Unit transactions Schedule 2) , ,444 Realized and unrealized gain (loss) on investments Realized gain (loss) on investments (a) Capital gain distribution from investments Change in unrealized appreciation (depreciation) of investments Net gain (loss) on investments from operations ( from operations per unit Schedule 4) (a) Realized gain (loss) on investments Proceeds from sale of investments Investments at cost, beginning of year Investments purchased Investments at cost, end of year Cost of investments sold Realized gain (loss) on investments 2,437 2,504 2,141 2,558 1,619 2,087 3,760 4,645 1,323 2,141 2,437 2,504 The accompanying notes are an integral part of these financial statements. Percentages shown in brackets in the Statement of Investment Portfolio relate investments at market value to total net assets of the Fund. 18

21 CI Money Market Segregated Fund Financial Statements Supplementary Schedules (for the years ended December 31) Schedule Net asset value per unit, end of year ($) Schedule 2 Unit transactions Balance, beginning of year Units issued for cash Units redeemed Balance, end of year 178, , , ,168 (204,038) (298,534) 107, ,444 Schedule 3 Management expense ratios 1 (%) Management and operating expenses Goods and services tax expenses Total management expense ratio Schedule 4 from operations per unit 3 ($) Management expense information is calculated based on expenses charged directly to the Fund plus, if applicable, expenses of the underlying mutual fund, calculated on a weighted average basis on the percentage weighting of the underlying mutual fund and is expressed as an annualized percentage of average net assets for the year. 2 Effective fiscal 2005, the fiscal year end of the underlying mutual fund changed from December 31 to March 31, As a result, the MER of the underlying mutual fund was based on the most recent audited MER at December 31, It is expected that the MER of the underlying mutual fund at December 31, 2005 would have been less than the prior year MER due to a decline in fees that occurred in September For fiscal 2006, the MER of the underlying mutual fund was based on the most recent MER at December 31, from operations per unit is calculated by dividing the increase (decrease) in net assets from operations of the Fund by the weighted average number of units outstanding during the year. For inception date of the Fund, please refer to note 1 in the Notes to the Financial Statements. The accompanying notes are an integral part of these financial statements. 19

22 Notes to the Financial Statements CI Segregated Funds 1. THE FUNDS The following funds were created by board resolution of Unity Life of Canada. Fund Names (the Fund ) Dated CI Global Segregated Fund October 28, 1997 CI Global Value Segregated Fund October 28, 1997 CI Harbour Segregated Fund October 28, 1997 CI Harbour Growth & Income Segregated Fund October 28, 1997 CI Synergy American Segregated Fund October 28, 1997 CI Money Market Segregated Fund October 28, 1997 Each Fund invests all of its net assets in a CI mutual fund (the Underlying Funds ). CI Investments Inc. is the manager of each Fund and Underlying Fund. The Statement of Investment Portfolio for each Fund is as at December 31, 2006 and the Statements of Net Assets are as at December 31, 2006 and The Statements of Operations and Changes in Net Assets for each Fund are for the years ended December 31, 2006 and The Supplementary Schedules on the Financial Statements for each Fund are for each of the most recent five years for schedules 1 and 3, and two years for schedules 2 and 4 ended December 31. Effective December 31, 2000, the Funds were closed to new or additional contributions. 3. INCOME TAXES The Funds are deemed to be intervivos trusts under the provisions of the Income Tax Act (Canada) and are deemed to have allocated their income to the beneficiaries. Each Fund s net capital gains (losses) are deemed to be those of the beneficiaries. Accordingly, the Funds are not subject to income tax on their net income, including net realized capital gains for the year. A Fund may elect to realize capital gains (losses) for the previous taxation year, where necessary to allocate capital gains (losses) to redeeming beneficiaries. 4. MANAGEMENT FEES AND OTHER EXPENSES Unity Life of Canada charges the Funds an annual management fee. The management fee is calculated on the net assets of the Funds at the end of each business day and is paid at the end of each month. CI Investments Inc. is the manager of the Funds and the Underlying Funds, and in consideration of management fees received, provides management services required in the daytoday operations of the Funds and the Underlying Funds including the management of the investment portfolios of the Underlying Funds. In addition to the management fee payable, the Funds also bear all operating and administrative expenses including audit and legal fees, registry and transfer agency fees, insurance costs, custody fees, expenses relating to reporting and making distributions to unitholders, all other costs and fees imposed by statute or regulation and expenses of all communications with unitholders. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES These financial statements have been prepared in accordance with Canadian generally accepted accounting principles. The following is a summary of significant accounting policies of the Funds: (a) Valuation of Investments Investment funds are valued on each business date at their closing net asset value as reported by the fund manager. (b) Foreign Exchange Foreign currency amounts are translated into Canadian dollars as follows: market value of investments, other assets and liabilities at the closing rate of exchange on each business day; income, expenses and purchases, sales and settlements of investments at the rate of exchange prevailing on the respective dates of such transactions. (c) Investment Transactions and Income Recognition Investment transactions are accounted for on the trade date for financial statement purposes and any realized gains and losses from such transactions are calculated on an average cost basis. Distributions from Underlying Funds are recorded on the exdistribution date and interest income is accrued on a daily basis. (d) Net Asset Value Per Unit Net asset value per unit is calculated at the end of each day on which the Toronto Stock Exchange is open for business by dividing the net assets of each Fund by its outstanding units. Management Expense Ratio (MER) information appears in the Supplementary Schedules to the Financial Statements. 5. UNITS ISSUED AND OUTSTANDING Unit Transactions information appears in the Supplementary Schedules to the Financial Statements. 6. FUTURE ACCOUNTING STANDARDS The Canadian Institute of Chartered Accountants ("CICA") has issued Section 3855, Financial Instruments: Recognition and Measurement, effective for interim and annual financial statements relating to fiscal years beginning on or after October 1, The adoption of this section will impact the valuation and disclosure of the net asset value ("NAV") of the Funds, and the way transaction costs are recorded for financial reporting purposes. The Funds are not expected to be impacted. The new standards are not expected to have a material impact to the financial statements of the underlying mutual funds. Section 3855 also requires that transaction costs, such as brokerage commissions, incurred in the purchase and sale of securities be charged to net income in the period. Prior to this new section, these costs have been added to the cost of the securities purchased or deducted from the proceeds of sale. Adoption of this policy is not expected to have a material impact to the financial statements and does not impact the daily price of the Funds. On January 1, 2007, the Funds adopted Section 3855 on a prospective basis for financial reporting purposes. (e) Use of Estimates The preparation of financial statements in accordance with Canadian generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the reporting date and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. The Canadian Securities Administrators have granted temporary relief to investment funds from complying with Section 3855, for the purpose of calculating and reporting of NAV (other than for financial reporting purposes) until September 30, 2007, to permit review of the suitability of these financial reporting requirements for purposes other than the financial statements, such as the purchase and redemption price of units of an investment fund. (f) Comparatives Certain comparative amounts have been reclassified to conform with the current year's financial statement presentation. 20