SunWise. managed by CI Investments Inc. issued by Sun Life Assurance Company of Canada

Transcription

1 SunWise II S E G R E G A T E D F U N D S 2008 Semi-Annual Financial Statements as at June 30, 2008 managed by CI Investments Inc. issued by Sun Life Assurance Company of Canada

2 A look inside Overview...1 Equity Funds SunWise AIC American Focused Fund...2 SunWise AIC Diversified Canada Fund...7 SunWise AIM Canadian First Class Fund...12 SunWise Canadian Equity Index Fund...17 SunWise CI American Growth Fund...22 SunWise CI American Value Fund...27 SunWise CI Canadian Equity Fund...32 SunWise CI Canadian Investment Fund...37 SunWise CI Global Fund...42 SunWise CI Global Value Fund...47 SunWise CI Harbour Fund...52 SunWise CI International Fund...57 SunWise CI International Value Fund...62 SunWise CI Signature Select Canadian Fund...67 SunWise CI Synergy American Fund...72 SunWise CI Synergy Canadian Fund...77 SunWise CI Synergy Global Corporate Class...82 SunWise CI Value Trust Corporate Class...87 SunWise CI World Equity Fund...92 SunWise Dynamic Power American Growth Fund...97 SunWise Fidelity Growth America Fund SunWise Fidelity International Portfolio Fund SunWise Fidelity NorthStar Fund SunWise Fidelity True North Fund SunWise Mackenzie Cundill Canadian Security Fund SunWise Trimark Select Growth Fund SunWise Trimark U.S. Companies Fund SunWise U.S. Market Index Fund Portfolios SunWise Portfolio Series Balanced Fund SunWise Portfolio Series Balanced Growth Fund SunWise Portfolio Series Conservative Balanced Fund SunWise Portfolio Series Conservative Fund SunWise Portfolio Series Growth Fund SunWise Portfolio Series Income Fund SunWise Portfolio Series Maximum Growth Fund SunWise Portfolio Series Summit Balanced Growth Fund SunWise Portfolio Series Summit Maximum Growth Fund Notes to the Financial Statements Legal Notice Balanced Funds SunWise CI Canadian Asset Allocation Fund SunWise CI Global Balanced Corporate Class SunWise CI Harbour Growth & Income Fund SunWise CI International Balanced Fund SunWise CI Signature Canadian Balanced Fund SunWise CI Signature Income & Growth Fund SunWise Fidelity Canadian Asset Allocation Fund SunWise Fidelity Global Asset Allocation Fund SunWise Mackenzie Cundill Canadian Balanced Fund SunWise Trimark Global Balanced Fund SunWise Trimark Income Growth Fund Income Funds SunWise Bond Index Fund SunWise CI Canadian Bond Fund SunWise CI Canadian Premier Bond Fund SunWise CI Dividend Fund SunWise CI Global Bond Fund SunWise CI Money Market Fund SunWise CI Short-Term Bond Fund SunWise CI Signature Dividend Fund SunWise CI Signature High Income Fund...237

3 2 Queen Street East, Twentieth Floor Toronto, Ontario M5C 3G7 Telephone: Toll Free: Facsimile: CI Investments is pleased to present the 2008 Semi-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 list of the top portfolio holdings of the underlying fund as at June 30, 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, managing about $56 billion in assets. Two million Canadians have If you would prefer to receive future annual and semi-annual financial statements and other important documents electronically, you may sign up at InvestorOnline at This service gives you easy online access to up-to-date information about your policy, and allows you to view and print documents such as this report and your 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 $103 billion in fee-earning assets at June 30, account statements, trade confirmations and tax receipts. CI Investments is known for providing the industry s widest selection If you have any questions about this report or CI s funds, please contact your advisor or CI Client Services at of investment products and leading portfolio managers. Our portfolio management expertise is available through several different platforms including mutual and segregated funds, managed solutions and Thank you for investing with us. 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 SunWise AIC American Focused Fund Top Holdings of Underlying Fund (unaudited) Security Name Weight (%) Johnson & Johnson 7.3 Toyota Motor Corporation 7.0 International Business Machines Corporation 6.8 IMS Health Incorporated 6.8 Accenture Ltd. 6.7 Covidien Limited 6.0 Berkshire Hathaway Inc Omnicom Group Inc. 5.2 Dell Inc. 5.1 Carnival Corporation & PLC 5.0 Illinois Tool Works Inc. 4.5 JPMorgan Chase & Co. 4.1 Tiffany & Co. 3.6 The Walt Disney Company 3.6 Black & Decker Corporation 3.5 Lowe s Companies, Inc. 3.4 Tyco International Ltd. 3.3 Cash & cash equivalents 3.3 UBS AG - (REG) 3.0 Morgan Stanley 2.7 USG Corporation 2.7 AFLAC Incorporated 0.6 Hewitt Associates, Inc. 0.6 Financial statements for the underlying AIC mutual fund, including information on the holdings of the underlying AIC fund, are available in electronic format on the mutual fund manager s website at 2 CIG

5 SunWise AIC American Focused Fund Financial Statements Statement of Investment Portfolio as at June 30, 2008 (unaudited) No. of Average Fair Units/Shares Investment Cost ($) Value ($) 1,931,059 AIC American Focused Fund (Class O) 9,897,907 6,343,528 Total Investments (99.8%) 9,897,907 6,343,528 Other (net) (0.2%) 15,575 Total Net (100.0%) 6,359,103 Statements of Net as at June 30, 2008 (unaudited) and December 31, 2007 (audited) (in $000 s except for per unit amounts and units outstanding) Statements of Operations for the periods ended June 30 (unaudited) Statements of Changes in Net for the periods ended June 30 (unaudited) Investments at fair value* Cash Receivable for unit subscriptions Receivable for securities sold Management fee rebate receivable Receivable for income distribution and interest Bank overdraft Management fees payable Administration fees payable Filing fees payable Insurance fees payable Payable for securities purchased Payable for unit redemptions Net assets and unitholders equity *Investments at cost Net asset value per unit Schedule 1 Number of units outstanding (Unit transactions Schedule 2) 6,344 8, ,400 8, ,359 8,373 9,898 12, , ,470 95, , , ,252 Income Income distribution from investments Interest Management fee rebate Expenses (Management expense ratios Schedule 3) Management fees Administrative fees Insurance fees Custody fees Legal fees Audit fees Goods and services tax Net investment income (loss) for the period 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) (1,102) (446) (572) (1,587) (1,456) (1,752) (a) Realized gain (loss) on investments Proceeds from sale of investments Investments at cost, beginning of period Investments purchased Investments at cost, end of period Cost of investments sold Realized gain (loss) on investments (126) (296) 2,063 1,768 12,561 16, ,063 16,504 9,898 14,867 3,165 1,637 (1,102) 131 Net assets, beginning of period Capital transactions Proceeds from units issued Payments for units redeemed from operations Net assets, end of period 8,373 17, ,448 (2,148) (2,425) (1,442) (977) (572) (1,752) 6,359 14,985 Percentages shown in brackets in the Statement of Investment Portfolio relate investments at fair value to total net assets of the Fund. 3

6 SunWise AIC American Focused Fund Financial Statements Supplementary Schedules (for the periods ended June 30 and December 31) (unaudited) Schedule 1 Net asset value per unit, end of period ($) Schedule Net asset value per unit, end of period ($) Schedule 2 Unit transactions Balance, beginning of period Units issued for cash Units redeemed Balance, end of period 979,470 1,153, , , , ,463 82,006 84,398 7,369 31,231 20,036 9,268 (256,386) (145,448) (29,090) (41,386) (45,945) (23,954) 805,090 1,092,659 95, , , ,777 Schedule 3 Management expense ratios 1 (%) Management and operating expenses Goods and services tax expenses Total management expense ratio 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 2 ($) (0.52) (1.19) (0.49) (1.19) (0.53) (1.19) 1 Management expense information is calculated based on expenses charged directly to the Fund plus, if applicable, expenses of the underlying fund, calculated on a weighted average basis on the percentage weighting of underlying fund and is expressed as an annualized percentage of average net assets for the periods shown. For 2008, the management expense information is calculated as above for the six months ended June 30, 2008 and is expressed as an annualized percentage of average net assets for the six-month period. 2 from operations per unit of the class is calculated by dividing the increase (decrease) in net assets from operations of the Fund by the weighted average number of units outstanding of the class during the year. 4

7 SunWise AIC American Focused Fund Fund Specific Financial Instruments Risks (unaudited) Financial Instruments (Note 2) as at June 30, 2008 (unaudited) Financial assets at fair value held for trading Operating and financing receivables Total Fair value 6, ,400 Market Price Risk (Note 2) The Fund bears the price risk exposure of the Underlying Fund. The price risk of the Underlying Fund is high. The Underlying Fund s holdings are sensitive to changes in general economic conditions in the United States. The Underlying Fund is fully invested in U.S. stocks; as a result, an overall downturn in American economy may have a negative impact on the value of the Underlying Fund s holdings. All securities investments present a risk of loss of capital; the maximum risk resulting from those investments is determined by their fair value. The table below summarizes the Fund s overall market exposure to market price risk. Total as at June 30, 2008 (unaudited)* Investments held for trading Derivative assets Derivative liabilities Investments sold short Fair value Net (%) 6, (6) (0.1) 6, * Excludes all operating and financing receivables and payables. As at June 30, 2008 had the prices of the investments held in this Fund increased or decreased by 1%, with all other variables held constant, net asset would have increased or decreased, respectively, by approximately $63,000. In practice, the actual trading results may differ from this analysis. The difference may be material. Interest Rate Risk (Note 2) The Fund bears the interest rate risk exposure of the Underlying Fund. The Underlying Fund has low exposure to interest rate risk as nearly all its assets are invested in stocks. The table below summarizes the Fund s exposure to interest rate risk. It includes the Fund s assets and trading liabilities at fair values, categorized by the contractual maturity date. as at June 30, 2008 (unaudited)** Financial assets at fair value held for trading Operating and financing receivables Derivative instruments receivables Total Less than Greater Non-interest 1 Year Years Years than 5 Years bearing Total 6,344 6, ,344 6,400 Derivative instruments payables Total ** Total assets and liabilities presented in table above are not intended to match total assets and liabilities disclosed in Statements of Net, due to differences in presentation of derivative instruments held at the end of reporting period, if applicable. 5

8 SunWise AIC American Focused Fund Fund Specific Financial Instruments Risks (unaudited) (cont d) Liquidity Risk (Note 2) The Fund bears the liquidity risk exposure of the Underlying Fund. The Underlying Fund has low liquidity risk as it invests predominantly in stocks that trade frequently in the markets. To meet potential redemptions from the unit-holders, the Fund may hold some cash balance. It also has a borrowing facility if additional cash is needed for emergency purpose. The table below analyses the Fund s financial liabilities and net settled derivative financial liabilities into relevant maturity categories based on the remaining period at the balance sheet date to the contractual maturity date. as at June 30, 2008 (unaudited)*** : Derivative instruments payables Total Due on demand months months Years > 5 Years Total ***Total liabilities presented in table above are not intended to match total liabilities presented in Statements of Net, due to differences in presentation of derivative instruments held at the end of reporting period, if applicable. Currency Risk (Note 2) The Fund bears the currency risk exposure of the Underlying Fund. The Underlying Fund is exposed to high currency risk as it invests predominantly in stocks that are denominated in currencies other than Canadian dollars, the functional currency of the Underlying Fund. As a result, the Underlying Fund will be affected by fluctuations in the value of such currencies relative to the Canadian dollar. The table below summarizes the Fund s exposure to currency risk. as at June 30, 2008 (unaudited)* Currency Canadian Dollars Total Cash and Short Financial Term Notes assets/liabilities Other assets at fair value at fair value and liabilities Derivatives Total Net (%) (6) 6, , (6) 6, , *The ending total presented in table above is not intended to match the net assets presented in Statements of Net, due to differences in presentation of derivative instruments held at the end of reporting period, if applicable. Credit Risk (Note 2) The Fund bears the credit risk exposure of the Underlying Fund. The Underlying Fund has insignificant exposure to credit risk as it invests predominantly in stocks. 6

9 SunWise AIC Diversified Canada Fund Top Holdings of Underlying Fund (unaudited) Security Name Weight (%) Canadian Oil Sands Trust 15.2 Shoppers Drug Mart Corporation 10.6 The Toronto-Dominion Bank 10.2 Power Financial Corporation 10.2 Manulife Financial Corporation 8.3 Brookfield Asset Management Inc Thomson Reuters Corporation 6.6 Royal Bank of Canada 5.1 Johnson & Johnson 4.1 FedEx Corp. 3.6 Quest Diagnostics Incorporated 3.3 First Capital Realty Inc. 2.9 UBS AG 2.5 Berkshire Hathaway Inc Cash & cash equivalents 2.1 CI Financial Income Fund 2.0 Leon s Furniture Limited 1.4 CI Financial Income Fund - Exchangeable LP Units 1.3 First Capital Realty Inc. - Convertible Debentures, 5.500%, September 30, 2017 (callable January 1, 2012) 0.5 Brookfield Infrastructure Partners L.P. 0.2 Financial statements for the underlying AIC mutual fund, including information on the holdings of the underlying AIC fund, are available in electronic format on the mutual fund manager s website at 7 CIG

10 SunWise AIC Diversified Canada Fund Financial Statements Statement of Investment Portfolio as at June 30, 2008 (unaudited) No. of Average Fair Units/Shares Investment Cost ($) Value ($) 514,592 AIC Diversified Canada Fund (Class O) 3,121,527 4,078,654 Total Investments (99.6%) 3,121,527 4,078,654 Other (net) (0.4%) 14,569 Total Net (100.0%) 4,093,223 Statements of Net as at June 30, 2008 (unaudited) and December 31, 2007 (audited) (in $000 s except for per unit amounts and units outstanding) Statements of Operations for the periods ended June 30 (unaudited) Statements of Changes in Net for the periods ended June 30 (unaudited) Investments at fair value* Cash Receivable for unit subscriptions Receivable for securities sold Management fee rebate receivable Receivable for income distribution and interest Bank overdraft Management fees payable Administration fees payable Filing fees payable Insurance fees payable Payable for securities purchased Payable for unit redemptions Net assets and unitholders equity *Investments at cost Net asset value per unit Schedule 1 Number of units outstanding (Unit transactions Schedule 2) 4,079 5, ,137 5, ,093 5,350 3,122 3, , ,204 28,335 31,859 38,158 43,068 Income Income distribution from investments Interest Management fee rebate Expenses (Management expense ratios Schedule 3) Management fees Administrative fees Insurance fees Custody fees Legal fees Audit fees Goods and services tax Net investment income (loss) for the period 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) (511) (238) (317) (216) 11 (101) (a) Realized gain (loss) on investments Proceeds from sale of investments Investments at cost, beginning of period Investments purchased Investments at cost, end of period Cost of investments sold Realized gain (loss) on investments (79) (112) 1, ,884 4, ,013 4,785 3,122 4, Net assets, beginning of period Capital transactions Proceeds from units issued Payments for units redeemed from operations Net assets, end of period 5,350 6, (1,184) (955) (940) (606) (317) (101) 4,093 6,077 Percentages shown in brackets in the Statement of Investment Portfolio relate investments at fair value to total net assets of the Fund. 8

11 SunWise AIC Diversified Canada Fund Financial Statements Supplementary Schedules (for the periods ended June 30 and December 31) (unaudited) Schedule 1 Net asset value per unit, end of period ($) Schedule Net asset value per unit, end of period ($) Schedule 2 Unit transactions Balance, beginning of period Units issued for cash Units redeemed Balance, end of period 372, ,078 31,859 48,180 43,068 51,443 18,873 26,136 1,048 1,175 1, (94,256) (64,060) (4,572) (8,873) (6,511) (2,431) 296, ,154 28,335 40,482 38,158 49,182 Schedule 3 Management expense ratios 1 (%) Management and operating expenses Goods and services tax expenses Total management expense ratio 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 2 ($) (0.80) (0.20) (0.78) (0.18) (0.73) (0.17) 1 Management expense information is calculated based on expenses charged directly to the Fund plus, if applicable, expenses of the underlying fund, calculated on a weighted average basis on the percentage weighting of underlying fund and is expressed as an annualized percentage of average net assets for the periods shown. For 2008, the management expense information is calculated as above for the six months ended June 30, 2008 and is expressed as an annualized percentage of average net assets for the six-month period. 2 from operations per unit of the class is calculated by dividing the increase (decrease) in net assets from operations of the Fund by the weighted average number of units outstanding of the class during the year. 9

12 SunWise AIC Diversified Canada Fund Fund Specific Financial Instruments Risks (unaudited) Financial Instruments (Note 2) as at June 30, 2008 (unaudited) Financial assets at fair value held for trading Operating and financing receivables Total Fair value 4, ,137 Market Price Risk (Note 2) The Fund bears the price risk exposure of the Underlying Fund. The price risk of the Underlying Fund is high. The Underlying Fund s holdings are sensitive to changes in general economic conditions in Canada. The Underlying Fund is fully invested in Canadian stocks; as a result, an overall downturn in Canadian economy may have a negative impact on the value of the Underlying Fund s holdings. All securities investments present a risk of loss of capital; the maximum risk resulting from those investments is determined by their fair value. The table below summarizes the Fund s overall market exposure to market price risk. Total as at June 30, 2008 (unaudited)* Investments held for trading Derivative assets Derivative liabilities Investments sold short Fair value Net (%) 4, , * Excludes all operating and financing receivables and payables. As at June 30, 2008 had the prices of the investments held in this Fund increased or decreased by 1%, with all other variables held constant, net asset would have increased or decreased, respectively, by approximately $41,000. In practice, the actual trading results may differ from this analysis. The difference may be material. Interest Rate Risk (Note 2) The Fund bears the interest rate risk exposure of the Underlying Fund. The Underlying Fund has low exposure to interest rate risk as nearly all its assets are invested in stocks. The table below summarizes the Fund s exposure to interest rate risk. It includes the Fund s assets and trading liabilities at fair values, categorized by the contractual maturity date. as at June 30, 2008 (unaudited)** Financial assets at fair value held for trading Operating and financing receivables Derivative instruments receivables Total Less than Greater Non-interest 1 Year Years Years than 5 Years bearing Total 30-4,079 4, ,079 4,137 Derivative instruments payables Total ** Total assets and liabilities presented in table above are not intended to match total assets and liabilities disclosed in Statements of Net, due to differences in presentation of derivative instruments held at the end of reporting period, if applicable. 10

13 SunWise AIC Diversified Canada Fund Fund Specific Financial Instruments Risks (unaudited) (cont d) Liquidity Risk (Note 2) The Fund bears the liquidity risk exposure of the Underlying Fund. The Underlying Fund has low liquidity risk as it invests predominantly in stocks that trade frequently in the markets. To meet potential redemptions from the unit-holders, the Fund may hold some cash balance. It also has a borrowing facility if additional cash is needed for emergency purpose. The table below analyses the Fund s financial liabilities and net settled derivative financial liabilities into relevant maturity categories based on the remaining period at the balance sheet date to the contractual maturity date. as at June 30, 2008 (unaudited)*** : Derivative instruments payables Total Due on demand months months Years > 5 Years Total ***Total liabilities presented in table above are not intended to match total liabilities presented in Statements of Net, due to differences in presentation of derivative instruments held at the end of reporting period, if applicable. Currency Risk (Note 2) The Fund bears the currency risk exposure of the Underlying Fund. The Underlying Fund s investments are denominated predominantly in Canadian dollar; as a result, the Underlying Fund has insignificant exposure to currency risk. The table below summarizes the Fund s exposure to currency risk. as at June 30, 2008 (unaudited)* Currency Canadian Dollars Total Cash and Short Financial Term Notes assets/liabilities Other assets at fair value at fair value and liabilities Derivatives Total Net (%) 30 4,079 (16) - 4, ,079 (16) - 4, *The ending total presented in table above is not intended to match the net assets presented in Statements of Net, due to differences in presentation of derivative instruments held at the end of reporting period, if applicable. Credit Risk (Note 2) The Fund bears the credit risk exposure of the Underlying Fund. The Underlying Fund has insignificant exposure to credit risk as it invests predominantly in stocks. 11

14 SunWise AIM Canadian First Class Fund Top 25 Holdings of Underlying Fund (unaudited) Security Name Weight (%) Talisman Energy Inc. 3.7 Manulife Financial Corp. 3.2 Canadian Oil Sands Trust 3.0 The Bank of Nova Scotia 3.0 E-L Financial Corp. Ltd. 2.7 The Toronto-Dominion Bank 2.7 Power Financial Corp. 2.6 Canadian National Railway Co. 2.6 Barrick Gold Corp. 2.5 Motorola, Inc. 2.3 Petro-Canada 2.1 Open Text Corp. 2.1 Dell Inc. 1.9 Brookfield Asset Management Inc., 1.8 Kinross Gold Corp. 1.8 Rothmans Inc. 1.7 Japan Petroleum Exploration Co., Ltd. 1.7 TSX Group Inc. 1.7 Suncor Energy Inc. 1.7 Meitec Corp. 1.7 CanWest Global Communications Corp. 1.6 Heineken N.V. 1.6 Shoppers Drug Mart Corp. 1.6 Magna International Inc., 1.6 Saskatchewan Wheat Pool Inc. 1.6 Financial statements for the underlying AIM mutual fund, including information on the holdings of the underlying AIM fund, are available in electronic format on the mutual fund manager s website at 12 CIG

15 SunWise AIM Canadian First Class Fund Financial Statements Statement of Investment Portfolio as at June 30, 2008 (unaudited) No. of Average Fair Units/Shares Investment Cost ($) Value ($) 2,397,038 AIM Canadian First Class Fund (Series A) 24,646,256 26,988,255 Total Investments (100.1%) 24,646,256 26,988,255 Other (net) (-0.1%) (33,461) Total Net (100.0%) 26,954,794 Statements of Net as at June 30, 2008 (unaudited) and December 31, 2007 (audited) (in $000 s except for per unit amounts and units outstanding) Statements of Operations for the periods ended June 30 (unaudited) Statements of Changes in Net for the periods ended June 30 (unaudited) Investments at fair value* Cash Receivable for unit subscriptions Receivable for securities sold Management fee rebate receivable Receivable for income distribution and interest Bank overdraft Management fees payable Administration fees payable Filing fees payable Insurance fees payable Payable for securities purchased Payable for unit redemptions Net assets and unitholders equity *Investments at cost Net asset value per unit Schedule 1 Number of units outstanding (Unit transactions Schedule 2) 26,988 33, ,206 33, ,955 33,645 24,646 25, ,087,752 1,317, , , , ,432 Income Income distribution from investments Interest Management fee rebate Expenses (Management expense ratios Schedule 3) Management fees Administrative fees Insurance fees Custody fees Legal fees Audit fees Goods and services tax Net investment income (loss) for the period 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) (5,911) (5,269) (2,104) 1,535 - (173) 1,362 1,138 (a) Realized gain (loss) on investments Proceeds from sale of investments Investments at cost, beginning of period Investments purchased Investments at cost, end of period Cost of investments sold Realized gain (loss) on investments 3, , ,165 (224) 5,588 5,240 25,428 30,440 4,164 1,572 29,592 32,012 24,646 28,307 4,946 3, ,535 Net assets, beginning of period Capital transactions Proceeds from units issued Payments for units redeemed from operations Net assets, end of period 33,645 42,447 2,437 3,370 (7,023) (7,086) (4,586) (3,716) (2,104) 1,138 26,955 39,869 Percentages shown in brackets in the Statement of Investment Portfolio relate investments at fair value to total net assets of the Fund. 13

16 SunWise AIM Canadian First Class Fund Financial Statements Supplementary Schedules (for the periods ended June 30 and December 31) (unaudited) Schedule 1 Net asset value per unit, end of period ($) Schedule Net asset value per unit, end of period ($) Schedule 2 Unit transactions Balance, beginning of period Units issued for cash Units redeemed Balance, end of period 1,317,404 1,638, , , , ,605 91, ,419 33,228 32,824 20,680 34,188 (320,958) (273,457) (51,155) (46,014) (47,248) (60,978) 1,087,752 1,479, , , , ,815 Schedule 3 Management expense ratios 1 (%) Management and operating expenses Goods and services tax expenses Total management expense ratio 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 2 ($) (1.21) 0.49 (1.14) 0.53 (1.17) Management expense information is calculated based on expenses charged directly to the Fund plus, if applicable, expenses of the underlying fund, calculated on a weighted average basis on the percentage weighting of underlying fund and is expressed as an annualized percentage of average net assets for the periods shown. For 2008, the management expense information is calculated as above for the six months ended June 30, 2008 and is expressed as an annualized percentage of average net assets for the six-month period. 2 from operations per unit of the class is calculated by dividing the increase (decrease) in net assets from operations of the Fund by the weighted average number of units outstanding of the class during the year. 14

17 SunWise AIM Canadian First Class Fund Fund Specific Financial Instruments Risks (unaudited) Financial Instruments (Note 2) as at June 30, 2008 (unaudited) Financial assets at fair value held for trading Operating and financing receivables Total Fair value 26, ,206 Market Price Risk (Note 2) The Fund bears the price risk exposure of the Underlying Fund. The price risk of the Underlying Fund is high. The Underlying Fund s holdings are sensitive to changes in general economic conditions in Canada. The Underlying Fund is fully invested in Canadian stocks; as a result, an overall downturn in Canadian economy may have a negative impact on the value of the Underlying Fund s holdings. All securities investments present a risk of loss of capital; the maximum risk resulting from those investments is determined by their fair value. The table below summarizes the Fund s overall market exposure to market price risk. Total as at June 30, 2008 (unaudited)* Investments held for trading Derivative assets Derivative liabilities Investments sold short Fair value Net (%) 26, (105) (0.4) 26, * Excludes all operating and financing receivables and payables. As at June 30, 2008 had the prices of the investments held in this Fund increased or decreased by 1%, with all other variables held constant, net asset would have increased or decreased, respectively, by approximately $270,000. In practice, the actual trading results may differ from this analysis. The difference may be material. Interest Rate Risk (Note 2) The Fund bears the interest rate risk exposure of the Underlying Fund. The Underlying Fund has low exposure to interest rate risk as nearly all its assets are invested in stocks. The table below summarizes the Fund s exposure to interest rate risk. It includes the Fund s assets and trading liabilities at fair values, categorized by the contractual maturity date. as at June 30, 2008 (unaudited)** Financial assets at fair value held for trading Operating and financing receivables Derivative instruments receivables Total Less than Greater Non-interest 1 Year Years Years than 5 Years bearing Total 26,988 26, ,988 27,206 Derivative instruments payables Total ** Total assets and liabilities presented in table above are not intended to match total assets and liabilities disclosed in Statements of Net, due to differences in presentation of derivative instruments held at the end of reporting period, if applicable. 15

18 SunWise AIM Canadian First Class Fund Fund Specific Financial Instruments Risks (unaudited) (cont d) Liquidity Risk (Note 2) The Fund bears the liquidity risk exposure of the Underlying Fund. The Underlying Fund has low liquidity risk as it invests predominantly in stocks that trade frequently in the markets. To meet potential redemptions from the unit-holders, the Fund may hold some cash balance. It also has a borrowing facility if additional cash is needed for emergency purpose. The table below analyses the Fund s financial liabilities and net settled derivative financial liabilities into relevant maturity categories based on the remaining period at the balance sheet date to the contractual maturity date. as at June 30, 2008 (unaudited)*** : Derivative instruments payables Total Due on demand months months Years > 5 Years Total ***Total liabilities presented in table above are not intended to match total liabilities presented in Statements of Net, due to differences in presentation of derivative instruments held at the end of reporting period, if applicable. Currency Risk (Note 2) The Fund bears the currency risk exposure of the Underlying Fund. The Underlying Fund s investments are denominated predominantly in Canadian dollar; as a result, the Underlying Fund has insignificant exposure to currency risk. The table below summarizes the Fund s exposure to currency risk. as at June 30, 2008 (unaudited)* Currency Canadian Dollars Total Cash and Short Financial Term Notes assets/liabilities Other assets at fair value at fair value and liabilities Derivatives Total Net (%) (105) 26, , (105) 26, , *The ending total presented in table above is not intended to match the net assets presented in Statements of Net, due to differences in presentation of derivative instruments held at the end of reporting period, if applicable. Credit Risk (Note 2) The Fund bears the credit risk exposure of the Underlying Fund. The Underlying Fund has insignificant exposure to credit risk as it invests predominantly in stocks. 16

19 SunWise Canadian Equity Index Fund Top 25 Holdings of Underlying Fund (unaudited) Security Name Weight (%) Potash Corporation of Saskatchewan Inc. 4.8 EnCana Corporation 4.6 Royal Bank of Canada 4.0 Research In Motion Limited 3.9 Suncor Energy Inc. 3.6 Canadian Natural Resources Limited 3.6 Manulife Financial Corporation 3.5 The Toronto-Dominion Bank 3.4 The Bank of Nova Scotia 3.0 Barrick Gold Corporation 2.7 Goldcorp Inc. 2.2 BCE Inc. 1.9 Petro-Canada 1.8 Canadian Oil Sands Trust 1.7 Canadian National Railway Company 1.5 Sun Life Financial Inc. 1.5 Talisman Energy Inc. 1.5 TransCanada Corporation 1.5 Nexen Inc. 1.4 Teck Cominco Limited, Class B SV 1.4 Canadian Imperial Bank of Commerce 1.4 Bank of Montreal 1.4 Rogers Communications Inc., Class B NV 1.4 Agrium Inc. 1.2 Brookfield Asset Management Inc., Class A LV 1.1 Financial statements for the underlying TD mutual fund, including information on the holdings of the underlying TD fund, are available in electronic format on the mutual fund manager s website at 17 CIG

20 SunWise Canadian Equity Index Fund Financial Statements Statement of Investment Portfolio as at June 30, 2008 (unaudited) No. of Average Fair Units/Shares Investment Cost ($) Value ($) 145,066 TD Emerald Canadian Equity Index Fund () 4,349,514 6,006,003 Total Investments (99.8%) 4,349,514 6,006,003 Other (net) (0.2%) 14,302 Total Net (100.0%) 6,020,305 Statements of Net as at June 30, 2008 (unaudited) and December 31, 2007 (audited) (in $000 s except for per unit amounts and units outstanding) Statements of Operations for the periods ended June 30 (unaudited) Statements of Changes in Net for the periods ended June 30 (unaudited) Investments at fair value* Cash Receivable for unit subscriptions Receivable for securities sold Management fee rebate receivable Receivable for income distribution and interest Bank overdraft Management fees payable Administration fees payable Filing fees payable Insurance fees payable Payable for securities purchased Payable for unit redemptions Net assets and unitholders equity *Investments at cost Net asset value per unit Schedule 1 Number of units outstanding (Unit transactions Schedule 2) 6,006 6, ,040 6, ,020 6,267 4,350 4, , ,079 59,316 62,568 13,605 16,159 Income Income distribution from investments Interest Management fee rebate Expenses (Management expense ratios Schedule 3) Management fees Administrative fees Insurance fees Custody fees Legal fees Audit fees Goods and services tax Net investment income (loss) for the period 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 period Investments purchased Investments at cost, end of period Cost of investments sold Realized gain (loss) on investments (90) (100) ,739 4, ,054 5,114 4,350 4, Net assets, beginning of period Capital transactions Proceeds from units issued Payments for units redeemed from operations Net assets, end of period 6,267 6, (816) (802) (510) (592) ,020 6,449 Percentages shown in brackets in the Statement of Investment Portfolio relate investments at fair value to total net assets of the Fund. 18

21 SunWise Canadian Equity Index Fund Financial Statements Supplementary Schedules (for the periods ended June 30 and December 31) (unaudited) Schedule 1 Net asset value per unit, end of period ($) Schedule Net asset value per unit, end of period ($) Schedule 2 Unit transactions Balance, beginning of period Units issued for cash Units redeemed Balance, end of period 281, ,386 62,568 66,131 16,159 18,471 15,465 11, ,096 1, (38,641) (43,202) (4,112) (3,215) (3,867) (1,604) 257, ,399 59,316 64,012 13,605 17,007 Schedule 3 Management expense ratios 1, 2 (%) Management and operating expenses Goods and services tax expenses Total management expense ratio Schedule 3 Management expense ratios 1, 2 (%) 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 fund, calculated on a weighted average basis on the percentage weighting of underlying fund and is expressed as an annualized percentage of average net assets for the periods shown. For 2008, the management expense information is calculated as above for the six months ended June 30, 2008 and is expressed as an annualized percentage of average net assets for the six-month period. 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 available 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 estimated MER at December 31, from operations per unit of the class is calculated by dividing the increase (decrease) in net assets from operations of the Fund by the weighted average number of units outstanding of the class during the year. 19

22 SunWise Canadian Equity Index Fund Fund Specific Financial Instruments Risks (unaudited) Financial Instruments (Note 2) as at June 30, 2008 (unaudited) Financial assets at fair value held for trading Operating and financing receivables Total Fair value 6, ,040 Market Price Risk (Note 2) The Fund bears the price risk exposure of the Underlying Fund. The price risk of the Underlying Fund is high. The Underlying Fund s holdings are sensitive to changes in general economic conditions in Canada. The Underlying Fund is fully invested in Canadian stocks; as a result, an overall downturn in Canadian economy may have a negative impact on the value of the Underlying Fund s holdings. All securities investments present a risk of loss of capital; the maximum risk resulting from those investments is determined by their fair value. The table below summarizes the Fund s overall market exposure to market price risk. Total as at June 30, 2008 (unaudited)* Investments held for trading Derivative assets Derivative liabilities Investments sold short Fair value Net (%) 6, , * Excludes all operating and financing receivables and payables. As at June 30, 2008 had the prices of the investments held in this Fund increased or decreased by 1%, with all other variables held constant, net asset would have increased or decreased, respectively, by approximately $60,000. In practice, the actual trading results may differ from this analysis. The difference may be material. Interest Rate Risk (Note 2) The Fund bears the interest rate risk exposure of the Underlying Fund. The Underlying Fund has low exposure to interest rate risk as nearly all its assets are invested in stocks. The table below summarizes the Fund s exposure to interest rate risk. It includes the Fund s assets and trading liabilities at fair values, categorized by the contractual maturity date. as at June 30, 2008 (unaudited)** Financial assets at fair value held for trading Operating and financing receivables Derivative instruments receivables Total Less than Greater Non-interest 1 Year Years Years than 5 Years bearing Total 32-6,006 6, ,006 6,040 Derivative instruments payables Total ** Total assets and liabilities presented in table above are not intended to match total assets and liabilities disclosed in Statements of Net, due to differences in presentation of derivative instruments held at the end of reporting period, if applicable. 20

23 SunWise Canadian Equity Index Fund Fund Specific Financial Instruments Risks (unaudited) (cont d) Liquidity Risk (Note 2) The Fund bears the liquidity risk exposure of the Underlying Fund. The Underlying Fund has low liquidity risk as it invests predominantly in stocks that trade frequently in the markets. To meet potential redemptions from the unit-holders, the Fund may hold some cash balance. It also has a borrowing facility if additional cash is needed for emergency purpose. The table below analyses the Fund s financial liabilities and net settled derivative financial liabilities into relevant maturity categories based on the remaining period at the balance sheet date to the contractual maturity date. as at June 30, 2008 (unaudited)*** : Derivative instruments payables Total Due on demand months months Years > 5 Years Total ***Total liabilities presented in table above are not intended to match total liabilities presented in Statements of Net, due to differences in presentation of derivative instruments held at the end of reporting period, if applicable. Currency Risk (Note 2) The Fund bears the currency risk exposure of the Underlying Fund. The Underlying Fund s investments are denominated predominantly in Canadian dollar; as a result, the Underlying Fund has insignificant exposure to currency risk. The table below summarizes the Fund s exposure to currency risk. as at June 30, 2008 (unaudited)* Currency Canadian Dollars Total Cash and Short Financial Term Notes assets/liabilities Other assets at fair value at fair value and liabilities Derivatives Total Net (%) 32 6,006 (18) - 6, ,006 (18) - 6, *The ending total presented in table above is not intended to match the net assets presented in Statements of Net, due to differences in presentation of derivative instruments held at the end of reporting period, if applicable. Credit Risk (Note 2) The Fund bears the credit risk exposure of the Underlying Fund. The Underlying Fund has insignificant exposure to credit risk as it invests predominantly in stocks. 21

24 SunWise CI American Growth Fund Top 25 Holdings of Underlying Fund (unaudited) No. of Shares/ Average Fair Face Amount Investment Cost ($) Value ($) 3,307,700 AES Corp. 41,105,284 64,770, ,845 Amazon.com Inc. 39,064,303 53,508, ,000 Aetna Inc. 36,118,582 41,107,572 1,252,100 ebay Inc. 50,442,817 34,881,952 59,700 Google Inc., 13,349,705 32,035,304 1,155,929 UnitedHealth Group Inc. 45,642,170 30,930, ,000 JP Morgan Chase & Co. 39,791,185 29,797,680 1,054,030 General Electric Co. 39,859,370 28,676, ,100 Hewlett-Packard Co. 23,999,259 27,945,017 1,620,300 Citigroup Inc. 62,330,579 27,681,625 1,270,400 Yahoo! Inc. 45,983,450 26,754, ,300 International Business Machines Corp. 25,736,157 26,496, ,000 Sears Holdings Corp. 48,610,158 25,979,450 1,693,900 Time Warner Inc. 34,449,573 25,554,749 5,825,000 Qwest Communications International Inc. 32,206,829 23,335,151 1,316,070 Freddie Mac 39,055,120 22,001,129 1,484,600 Eastman Kodak Co. 47,421,581 21,837, ,500 Cisco Systems Inc. 19,364,720 19,548, ,850 American International Group Inc. 42,962,102 18,822, ,400 Amgen Inc. 19,445,532 17,517, ,862 CA Inc. 20,966,572 17,178, ,400 Electronic Arts Inc. 22,606,402 16,820, ,900 Texas Instruments Inc. 20,002,732 16,444, ,077 Merrill Lynch & Co. Inc. 23,786,860 15,291, ,100 Capital One Financial Corp. 25,550,609 14,184, CIG

25 SunWise CI American Growth Fund Financial Statements Statement of Investment Portfolio as at June 30, 2008 (unaudited) No. of Average Fair Units/Shares Investment Cost ($) Value ($) 265,548 CI Value Trust Corporate Class (I Shares) 2,986,253 2,063,306 Total Investments (99.6%) 2,986,253 2,063,306 Other (net) (0.4%) 8,200 Total Net (100.0%) 2,071,506 Statements of Net as at June 30, 2008 (unaudited) and December 31, 2007 (audited) (in $000 s except for per unit amounts and units outstanding) Statements of Operations for the periods ended June 30 (unaudited) Statements of Changes in Net for the periods ended June 30 (unaudited) Investments at fair value* Cash Receivable for unit subscriptions Receivable for securities sold Management fee rebate receivable Receivable for income distribution and interest Bank overdraft Management fees payable Administration fees payable Filing fees payable Insurance fees payable Payable for securities purchased Payable for unit redemptions Net assets and unitholders equity *Investments at cost Net asset value per unit Schedule 1 Number of units outstanding (Unit transactions Schedule 2) 2,063 3, ,086 3, ,072 3,058 2,986 3, , ,498 54,404 64,923 59,586 61,302 Income Income distribution from investments Interest Management fee rebate Expenses (Management expense ratios Schedule 3) Management fees Administrative fees Insurance fees Custody fees Legal fees Audit fees Goods and services tax Net investment income (loss) for the period 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) (100) - (665) (765) (808) 74 - (236) (162) (241) (a) Realized gain (loss) on investments Proceeds from sale of investments Investments at cost, beginning of period Investments purchased Investments at cost, end of period Cost of investments sold Realized gain (loss) on investments (43) (79) ,302 4, ,487 4,291 2,986 3, (100) 74 Net assets, beginning of period Capital transactions Proceeds from units issued Payments for units redeemed from operations Net assets, end of period 3,058 4, (439) (681) (178) (282) (808) (241) 2,072 4,194 Percentages shown in brackets in the Statement of Investment Portfolio relate investments at fair value to total net assets of the Fund. 23