Signature Corporate Bond Fund Management Report of Fund Performance for the year ended March 31, 2013

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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 MC 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 Signature Corporate Bond Fund (the Fund ) is to achieve a yield advantage by using fundamental value analysis to evaluate investments. The Fund will invest mainly in fixed-income securities that are investment grade and below investment grade. To achieve the objective of the Fund, the portfolio advisor selects securities whose fundamental value it believes is not reflected in their credit ratings and yields. It first identifies companies that have the long-term ability to generate sufficient money to service their debt and reinvest in their business. The portfolio advisor also considers the impact of economic trends on interest rates and economic growth. The portfolio advisor may use techniques such as fundamental analysis to assess cash flow and growth potential. This means evaluating the financial condition and management of each issuer, its industry and the overall economy. As part of this evaluation, the portfolio advisor analyzes interest rates, the yield curve, credit ratings, credit risk, financial data and the quality of management. The Fund may have significant exposure to securities which are rated below investment grade or not rated. The Fund may also invest in bank loans and floating rate debt instruments. The Fund may invest primarily in investmentgrade securities when, in the portfolio advisor s opinion, it would not be prudent under prevailing market conditions or available investment opportunities to invest mainly in lower-grade securities. The portfolio advisor may also choose to invest the Fund s assets in foreign securities. The Fund may use derivatives, but only as permitted by securities regulations. In order to earn additional income, the Fund may also enter into securities lending transactions, repurchase transactions and reverse repurchase transactions, to the extent permitted by securities regulations. RISK The risks associated with investing in this Fund remain as discussed in the prospectus. The Fund is suitable for investors who want to receive income, are investing for the medium term and can tolerate low to medium risk. RESULTS OF OPERATIONS The net asset value of the Fund increased by $19.7 million to $2,147.3 million from March 31, 2012 to March 31, The Fund had net sales of $483.0 million during the period. The portfolio s performance increased net assets by $169.7 million. The Fund paid distributions totalling $133.0 million. The oneyear return for Class A units was 7.6%, Class E units was 8.6%, Class F units was 8.6%, Class I units was 9.9%, Insight units was 8.% and Class O units was 9.8%, as compared to the return of its benchmark of 9.8%. The benchmark is a combination of the Merrill Lynch U.S. High Yield Master II Total Return Index 0% and the DEX Universe + Maple Overall Total Return Index 0%. Strong demand for corporate debt continued throughout the 12-month review period, driven by quantitative easing measures and manufactured low interest rates. Although equity markets have shown great improvement, investors continue to be drawn to fixed-income securities. The U.S. Federal Reserve appears to be of the view that real economic improvement will not be lasting until share prices are higher, and will continue with quantitative easing until that occurs. This is important to credit investors because of the positive feedback loop higher asset prices have on consumer and business confidence, which in turn fuels economic growth. For most fixedincome investors, economic growth suggests inflation, which in turn implies higher interest rates and bond losses. For high-yield bond investors in particular, economic growth is a tailwind leading to better credit quality and therefore lower defaults. As a result, spreads (i.e. valuations) have historically been inversely correlated to interest rates. In the last 12 months, high-yield bonds returned 13.1% (Bank of America Merrill Lynch U.S. Master II Index, in U.S. dollars) as the yield on the average bond tightened 13 basis points to.6% or 481 basis points over Treasuries. Portfolio activity early in the period was muted, and we allowed cash levels to rise. The Fund entered the third quarter of 2012 with an elevated cash position and we were active throughout the quarter deploying cash, mostly in the new issue market. New bonds added to the portfolio include the US$9.% bonds of Canadian copper producer HudBay Minerals, the US$6.7% bonds of Canadian mid-tier gold producer IAMGOLD, the C$.% bonds of Golftown and the US$8.87% bonds of automotive and industrial supply chain manager SPL Logistics when it was spun out of Caterpillar. While security selection added value, Signature High Yield Bond Fund was challenged by the timing of certain large inflows, and the currency hedge also worked against us. We progressively lowered the U.S. dollar hedge in the second quarter as part of a broader risk-off portfolio hedge. This worked well, but the Canadian dollar rallied back to above parity in the third quarter. Fund performance in the first quarter of 2013 was helped in part by appreciation of the U.S. dollar against the Canadian dollar. We were particularly active in the new high-yield bond issue market in 2012 but mindful that the market wanted to run, and so we have been much less active in New positions added in the first three months of 2013 include the US$7.7% bonds of satellite provider Intelsat, the US$7.% of HD Supply, the logistics and building products distribution business spun out of Home 1 CIG - 90

2 Depot in 2007, the US$% bonds of Melco Crown subsidiary Studio City, a new resort under construction in the booming gaming market of Macau, and the US$4.% convertible bonds of Starwood Property Trust. Including Canadiandollar denominated bonds, approximately 33% of the portfolio is outside our benchmark. This is congruent with our total return focus and likely to grow over time should the broad market continue to tighten further and we can find compelling investments in the unrated and private placement markets. Investor demand remained for investment-grade corporate bonds remained solid as investment managers looked to add value in credit markets instead of making duration bets. Interest rates at the front end of the yield curve are steady, given that central banks have indicated that they are not raising rates for at least another year. The Fund performed in line with its benchmark during the period. RECENT DEVELOPMENTS The high-yield bond market could be a prime beneficiary of the latest round of quantitative easing, this time courtesy of the Bank of Japan, as that investor base has long shown a preference for foreign income investing. Nonetheless, the callable nature of most high-yield bonds constrains much further price appreciation. Valuations which are rich in terms of yield and fairly-valued in terms of spread are well-supported given the unlikely event of recession. This affirms our low-single digit or coupon-like return forecast for the year. After a good start to the year for investment-grade credit, our positive outlook is more tempered given the global struggle to find growth while reducing government deficits. As investors search for yield and expect lower returns, companies are very likely to do more shareholder friendly-activities with inexpensive debt. However, supportive central banks, continued strong investor demand and the yield pickup over government bonds support our moderately long view. International Financial Reporting Standards As previously confirmed by the Canadian Accounting Standards Board ( AcSB ), most Canadian publicly accountable entities adopted International Financial Reporting Standards ( IFRS ), as published by the International Accounting Standards Board, on January 1, However, the AcSB has allowed most investment funds to defer adoption of IFRS until fiscal years beginning on or after January 1, Accordingly, the Fund will adopt IFRS for its fiscal period beginning April 1, 2014, and will issue its initial financial statements in accordance with IFRS, including comparative information, for the interim period ending September 30, RELATED PARTY TRANSACTIONS Manager, Portfolio Advisor, Trustee and Registrar CI Investments Inc. is the Manager, Portfolio Advisor, Trustee 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. Management fee and fixed administration fee rates as at March 31, 2013, for each of the classes are shown below: Annual management fee rate (%) Annual fixed administration fee rate (%) Class A Class E Class F Class I Insight Units Class O Paid directly by investor Paid directly by investor The Manager received $6.0 million in management fees and $0.7 million in fixed administrative fees for the period. Management Fees Approximately 30% of total management fees were used to pay for sales and trailing commissions and other services required. The remaining 70% of management fees were used to pay for investment management and other general administration. Broker commissions During the period, the Fund did not pay brokerage commissions to The Bank of Nova Scotia or its subsidiaries. The Bank of Nova Scotia has a significant interest in CI Financial Corp., the parent company of CI Investments Inc. Independent Review Committee The Fund received standing instructions from the Board of Governors ( BoG ) in its capacity as the Independent Review Committee ( IRC ) with respect to the following Related Party Transactions: Class Z

3 a) trades in securities of CI Financial Corp. and The Bank of Nova Scotia; b) purchases or sales of securities of an issuer from or to another investment fund managed by the Manager (referred to as Inter-Fund Trades ); and c) mergers of funds with another fund that is subject to National Instrument 81-2 ( Fund Mergers ). The applicable standing instructions require that Related Party Transactions be conducted in accordance with the Manager s policies and procedures. The Manager is required to advise the BoG of any material breach of a condition of the standing instructions. The standing instructions require, among other things, that the investment decision in respect to Related Party Transactions (a) are made by the Manager free from any influence by any entities related to the Manager and without taking into account any consideration to any affiliate of the Manager; (b) represent the business judgment of the Manager uninfluenced by considerations other than the best interests of the Fund; and (c) are made in compliance with the Manager s policies and procedures. Transactions made by the Manager under the standing instructions are subsequently reviewed by the BoG on a quarterly basis to monitor compliance. The Fund relied on the BoG s standing instructions regarding Related Party Transactions during this reporting period. 3

4 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. The shown below are based on net asset values. The Fund s Net Assets per Unit ($) (1) (2) * Class A Commencement of operations December 17, 2001 Year ended Year ended Year ended Year ended Year ended March 31, 2013 March 31, 2012 March 31, 2011 March 31, 20 March 31, 2009 $ $ $ $ $ (0.21) (0.20) (0.21) (0.19) (0.20) (0.09) (0.07) (0.7) (0.13) 0.83 (0.28) (0.48) (0.44) (0.7) (0.3) (0.38) (0.37) (0.14) - (0.11) - - (0.8) (0.7) (0.64) (0.38) (0.37) , , ,16 191,411 90,341 37,161 30,79 23,441 19,94, *Footnotes for the tables are found at the end of the Financial Highlights section. 4

5 FINANCIAL HIGHLIGHTS (cont d) The Fund s Net Assets per Unit ($) (1) (2) * Class E Commencement of operations October 4, 2011 Period from Year ended Inception to March 31, 2013 March 31, 2012 $ $ (0.14) (0.07) (0.20) (0.3) (0.26) - - (0.16) (0.69) (0.26) ,473 2, *Footnotes for the tables are found at the end of the Financial Highlights section.

6 FINANCIAL HIGHLIGHTS (cont d) The Fund s Net Assets per Unit ($) (1) (2) * Class F Commencement of operations July 1, 2003 Year ended Year ended Year ended Year ended Year ended March 31, 2013 March 31, 2012 March 31, 2011 March 31, 20 March 31, 2009 $ $ $ $ $ (0.12) (0.12) (0.12) (0.12) (0.17) (0.09) (0.08) (0.4) (0.22) 0.81 (0.48) (0.1) (0.2) (0.64) (0.62) (0.47) (0.43) (0.16) - (0.12) - - (0.68) (0.64) (0.74) (0.47) (0.43) ,383 6,314 4,63 1, *Footnotes for the tables are found at the end of the Financial Highlights section. 6

7 FINANCIAL HIGHLIGHTS (cont d) The Fund s Net Assets per Unit ($) (1) (2) * Class I Commencement of operations July 1, 2003 Year ended Year ended Year ended Year ended Year ended March 31, 2013 March 31, 2012 March 31, 2011 March 31, 20 March 31, 2009 $ $ $ $ $ (0.11) (0.) (0.9) (0.13) 0.97 (0.47) (0.47) (0.61) (0.70) (0.70) (0.60) (0.9) (0.17) - (0.13) - - (0.78) (0.70) (0.83) (0.60) (0.9) ,740,3 1,308, , , , ,001 12,871 7,247 7,86 76, *Footnotes for the tables are found at the end of the Financial Highlights section. 7

8 FINANCIAL HIGHLIGHTS (cont d) The Fund s Net Assets per Unit ($) (1) (2) * Insight Units Commencement of operations July 1, 2003 Year ended Year ended Year ended Year ended Year ended March 31, 2013 March 31, 2012 March 31, 2011 March 31, 20 March 31, 2009 $ $ $ $ $ (0.13) (0.13) (0.13) (0.12) (0.11) (0.08) (0.) (0.3) (0.12) 1.03 (0.0) (0.4) (0.2) (0.64) (0.62) (0.49) (0.49) (0.16) - (0.12) - - (0.68) (0.64) (0.74) (0.49) (0.49) ,44 3,14 4,196 4,999, *Footnotes for the tables are found at the end of the Financial Highlights section. 8

9 FINANCIAL HIGHLIGHTS (cont d) The Fund s Net Assets per Unit ($) (1) (2) * Class O Commencement of operations October 4, 2011 Period from Year ended Inception to March 31, 2013 March 31, 2012 $ $ (0.02) (0.01) (0.09) (0.62) (0.34) - - (0.17) (0.79) (0.34).87.6,07 2, *Footnotes for the tables are found at the end of the Financial Highlights section. 9

10 FINANCIAL HIGHLIGHTS (cont d) The Fund s Net Assets per Unit ($) (1) (2) Class Z Commencement of operations September 9, 2012 Period from Inception to March 31, 2013 $ (0.11) (0.24) - (0.14) - (0.38).12 9, (1) This information is derived from the Fund s audited annual financial statements. The net assets per unit presented in the financial statements differs from the net asset value calculated for Fund pricing purposes. An explanation of these differences can be found in the notes to the financial statements or in footnote (7) below. (2) Net assets per unit and distributions per unit are based on the actual number of units outstanding for the relevant class at the relevant time. The increase (decrease) from operations per unit is based on the weighted average number of units outstanding for the relevant class over the fiscal year. (3) Distributions were paid in cash or automatically reinvested in additional units of the Fund. (4) Management expense ratio is calculated based on expenses charged to the Fund (excluding commissions and other portfolio transaction costs) and is expressed as an annualized percentage of daily average net asset value for the period. As of July 1, 20, Ontario combined the federal goods and services tax ("GST" - %) with the provincial retail sales tax ("PST" - 8%). The combination resulted in a Harmonized sales tax ("HST") rate of 13%. The Effective HST tax rate is calculated using the attribution percentage for each province based on unitholder residency and can be different from 13%. For any particular year, the rate shown will be prorated based on the different rates in effect during that year. For the year ended March 31, 2011, the rate applied is % for the period April 1, 20 to June 30, 20 and the Fund s Effective HST rate for the period from July 1, 20 to March 31, The rate shown for the year ended March 31, 2011 is the time weighted average of these rates. Begining April, 2011, the HST rate is based on the residing of the unitholder. () The Fund s portfolio turnover rate indicates how actively the Fund s portfolio advisor manages its portfolio investments. A portfolio turnover rate of 0% 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 the year, and the greater the chance of an investor receiving taxable capital gains in the year. 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 the year, 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 market value of investments during the year. (6) The trading expense ratio represents total commissions and other portfolio transaction costs disclosed in the Statements of Operations expressed as an annualized percentage of daily average net asset value of the Fund during the year. (7) Section 14.2 of National Instrument 81-6 requires the net assets of an investment fund to be calculated using the fair value of the Fund s assets and liabilities. Canadian GAAP requires a different valuation method for calculating net assets. For the purpose of processing unitholder transactions, net assets are calculated based on the closing market price (referred to as Net Asset Value ), while for financial statement purposes net assets are calculated based on bid/ask price (referred to as Net Assets ).

11 PAST PERFORMANCE This section describes how the Fund has performed in the past. Past returns do not indicate how the Fund will perform in the future. The information shown assumes that distributions made by the Fund in the years shown were reinvested in additional units 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 the years 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 Dec Dec Mar Mar Mar Mar Mar. 20 Mar Mar Mar *This figure is for the period from October 4, 2011 to March 31, Class A This figure is for the period from January 1, 200 to March 31, Class E * Dec Dec Mar Mar Mar Mar Mar. 20 Mar Mar Mar * 8.6 Mar Mar *This figure is for the period from July 1, 2003 to December 31, Class F This figure is for the period from January 1, 200 to March 31, 2006 Class I * Dec Dec Mar Mar Mar Mar Mar. 20 Mar Mar Mar * Dec Dec Mar Mar Mar Mar Mar. 20 Mar Mar ** 9.8 Mar Mar Mar Annual Compound Returns The following table shows the Fund s annual compound returns for each period indicated, compared to the DEX Universe + Maple Bond Total Return Index, the Merrill Lynch U.S. High Yield Master II Total Return Index, and the Blended Index composed of: 0% - DEX Universe + Maple Bond Total Return Index, and 0% - Merrill Lynch U.S. High Yield Master II Total Return Index. The DEX Universe + Maple Bond Total Return Index is a market capitalization weighted index that measures the performance of Canadian dollar-denominated bonds issued in Canada and by foreign government and corporations. All bonds eligible for the DEX Universe + Maple Bond Index must have an effective term to maturity greater than one year and be rated BBB (low) or higher. The Merrill Lynch U.S. High Yield Master II Total Return Index is an unmanaged index that tracks the performance of below investment grade U.S. dollardenominated corporate bonds publicly issued in the U.S. domestic market. 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 Three Five Ten Since Year Years Years Years Inception Class A (%) n/a Blended Index (%) n/a n/a DEX Universe + Maple Bond Total Return Index (%) n/a n/a Merrill Lynch U.S. High Yield Master II Total Return Index (%) n/a Class E (%) 8.6 n/a n/a n/a 12.3 Blended Index (%) 9.8 n/a n/a n/a.1 DEX Universe + Maple Bond Total Return Index (%) 6. n/a n/a n/a 7.1 Merrill Lynch U.S. High Yield Master II Total Return Index (%) 13.1 n/a n/a n/a 13.2 Class F (%) n/a 6.0 Blended Index (%) n/a 8.1 DEX Universe + Maple Bond Total Return Index (%) n/a.9 Merrill Lynch U.S. High Yield Master II Total Return Index (%) n/a.1 Class I (%) n/a 7.8 Blended Index (%) n/a 8.1 DEX Universe + Maple Bond Total Return Index (%) n/a.9 Merrill Lynch U.S. High Yield Master II Total Return Index (%) n/a.1 *This figure is for the period from July 1, 2003 to December 31, **This figure is for the period from October 4, 2011 to March 31, This figure is for the period from January 1, 200 to March 31, Insight Units Class O 11

12 One Three Five Ten Since Year Years Years Years Inception Insight Units (%) n/a 6.4 Blended Index (%) n/a 8.1 DEX Universe + Maple Bond Total Return Index (%) n/a.9 Merrill Lynch U.S. High Yield Master II Total Return Index (%) n/a.1 Class O (%) 9.8 n/a n/a n/a 13. Blended Index (%) 9.8 n/a n/a n/a.1 DEX Universe + Maple Bond Total Return Index (%) 6. n/a n/a n/a 7.1 Merrill Lynch U.S. High Yield Master II Total Return Index (%) 13.1 n/a n/a n/a

13 Summary of Investment Portfolio as at March 31, 2013 Portfolio Breakdown Percentage of Category Net Asset Value (%) Portfolio Breakdown (cont d) Percentage of Category Net Asset Value (%) Top 2 Holdings Percentage of Security Name Net Asset Value (%) Country allocation Canada U.S.A Short-Term Investments Luxembourg U.K Cayman Islands Germany Other Net Assets (Liabilities) Australia Bermuda Marshall Islands France Norway Spain Ireland Brazil Mexico Cash & Equivalents Foreign Currency Forward Contracts Jersey Island Netherlands Netherlands Antilles Sector allocation Corporate Bonds Short-Term Investments Other Net Assets (Liabilities) Asset Backed Securities Financials Canadian Government Bonds Cash & Equivalents Foreign Currency Forward Contracts Foreign Government Bonds Materials Consumer Discretionary Short-Term Investments Harvest Operations Corp., 6.87% /01/ International Lease Finance Corp., 8.7% 03/1/ Lincoln National Corp., Callable 7% 0/17/ Kinetic Concepts Inc./KCI USA Inc.,.% 11/01/ Athabasca Oil Corp., Ristricted 7.% 11/19/ National Money Mart Co.,.37% 12/1/ Calpine Corp., 7.% 02/1/ Power Corp. of Canada 8.7% 04/22/ The Royal Bank of Scotland, Callable.37% 0/12/ Multiplan Inc., 9.87% 09/01/ Rogers Communications Inc., 6.11% 08/2/ National Bank of Canada 2.689% 08/21/ Alliance One International Inc., % 07/1/ CHC Helicopter S.A., 9.2% /1/ Case New Holland Inc., 7.87% 12/01/ Pacific Rubiales Energy Corp., 7.2% 12/12/ Royal Bank of Canada 2.364% 09/21/ Eksportfinans ASA 3% 11/17/ CB Richard Ellis Services Inc., 11.62% 06/1/ SLM Corp., 8.4% 06/1/ Sherritt International Corp., 7.% 09/24/ Wind Acquisition Finance S.A., 11.7% 07/1/ RBC Capital Trust, Callable.812% 12/31/ Scotiabank Capital Trust 6.282% 06/30/ Total Net Asset Value (in $000 s) $2,147,308 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. 13