A new addition to the Harbour family. Harbour Foreign Equity Fund

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1 A new addition to the Harbour family Harbour Foreign Equity Fund

2 introducing the Harbour Foreign Equity Fund Through some of the most uncertain markets in history, the Harbour Funds continue to deliver solid, steady returns with below-market volatility. Now, you can focus on foreign investing using this dependable Harbour Funds investment style. Harbour Foreign Equity Fund, an enduring global investment that can weather any market conditions, is an essential core fund for your portfolio. Harbour Funds

3 Harbour Foreign Equit A Great Investment Choice For investors in Harbour Foreign Equity Fund, the Harbour investment style offers the potential for consistent long-term capital growth, low volatility, and tax efficiency: Long-term capital growth flows from focussing on world-class businesses with above average growth rates; The Harbour Funds Story: long-term, low-volatility growth since 1997 Market volatility is buffered by buying high-quality companies at attractive valuation levels; The Harbour investment style of Gerald Coleman and Stephen Jenkins has guided the existing Harbour Fund and Harbour Growth & Income Fund since inception. With the Harbour Funds, they have achieved an enviable track record. Harbour Fund and Harbour Growth & Income Fund have both posted firstquartile results over one, two, and three years ending April 30, Furthermore, these returns have been produced with lower levels of risk than most other funds. Harbour Fund, for example, has had lower volatility than both the market and 94% of 268 Canadian equity funds over this three-year period, based on standard deviation. (Source: Globe Hysales) as at QUARTILE RANKING April 30, yr 2yr 3yr Harbour Fund Harbour Growth & Income Fund Source: Globe HySales PERFORMANCE April 30, 2002 Compound Annual Returns 1yr 3yr Life* Harbour Fund +9.3% +12.8% +9.2% TSE 300** -2.0% +4.5% +5.2% Harbour Growth & Income Fund +10.5% +9.3% +6.3% 60% TSE 300, 40% Scotia Universe** +2.3% +4.9% +5.9% *Performance since inception: June 1997 **Source: Globe HySales Tax efficiency is achieved through a buy and hold approach with an average expected holding period of four or five years. Proven Management The success of the Harbour Funds is the result of an experienced and disciplined portfolio management team led by Gerald Coleman. For over 35 years, Mr. Coleman has managed money on behalf of institutional and mutual fund investors. His selection as Fund Manager of the Year at the 2001 Canadian Mutual Fund Awards acknowledged his reputation as one of Canada s premier investment managers. Mr. Coleman and Stephen Jenkins have successfully managed portfolios through all market conditions and achieved superior results by staying true to their Harbour investment style selecting solid, high-quality companies that appreciate in value over time. Fundamental Investment Objectives Harbour Foreign Equity Fund aims for long-term growth consistent with capital preservation by focusing on soundly-managed foreign equity investments primarily from the world s leading industrialized nations.

4 y Fund A Disciplined Investment Process Harbour Foreign Equity Fund is managed with the same disciplined, bottomup research-intensive style that is used in all the Harbour Funds. The portfolio contains 30 to 40 foreign securities across a diverse group of industry sectors. Mr. Coleman s Harbour team conducts intensive financial and company-specific research to ensure the highest-quality portfolio holdings. The most important requirement for inclusion is a company s ability to increase earnings on a sustained basis. This requires a strong investor-focused management team, solid financial footing, and a competitive advantage. The Harbour team looks at potential investments with a five-year timeframe, not just the next quarter or two. This longer time horizon allows a disciplined and measured analysis before making a commitment and produces a very high-quality portfolio of foreign securities. Long-term growth, low volatility and tax efficiency are what make Harbour Foreign Equity Fund an excellent core global fund for now and for the future. The Sector Fund Advantage Harbour Foreign Equity Fund is a member of the Sector Fund family. This allows investors to switch among 40 Sector Fund share classes to rebalance or lock in gains without triggering a disposition for tax purposes. This flexibility is available to Fund investors in addition to the natural tax efficiency of the Harbour team s long-term holding style. Also Available: Harbour Foreign Equity RSP Fund A tightly-focused portfolio assembled by a proven manager dedicated to fundamentals makes Harbour Foreign Equity RSP Fund especially appropriate for long-term, low-risk RSP investments. TOP 10 REASONS TO INVEST IN HARBOUR FOREIGN EQUITY FUND 1. Gerald Coleman (Fund Manager of the Year, 2001 Canadian Mutual Fund Awards) & Stephen Jenkins 2. Dependable Harbour Funds investment style proven successful through all market conditions 3. Long-term capital growth from stocks with above-average growth rates 4. Market volatility buffered by buying high-quality companies at reasonable prices 5. Four or five year holding periods mean lower turnover and tax efficiency 6. Focused portfolio of 30 to 40 global stocks in 10 to 15 industry sectors 7. Intensive in-depth financial and company research with a global reach 8. Fundamental bottom-up analysis 9. Also available as a 100% RSP-eligible fund 10. A proven strategy to grow wealthy gradually

5 We invest the assets of the Harbour Foreign Equity Fund in the same patient, methodical way we have managed our other Harbour Funds. We invest only in high-quality, easy-to-understand businesses with promising futures, and only if they are available at a sensible price Gerald Coleman The Managers Fund Manager of the Year, 2001 Gerald Coleman, head of the Harbour Funds portfolio management team at CI Mutual Funds Inc., joined CI in 1997 to establish the Harbour Funds. Mr. Coleman s expertise is the result of more than 35 years of experience in Canadian financial markets. Mr. Coleman began his career in finance with Montreal Trust where he managed investment portfolios for estate, trust, personal and pension portfolios. In 1978, Mr. Coleman moved to United Financial Management to concentrate exclusively on mutual funds. In 1992, he moved to Mackenzie Financial Corporation to assist in the creation of the Ivy Funds. Stephen Jenkins, CFA, began his career with Royal Insurance in 1990 as an Investment Analyst where his duties included comprehensive research and analysis of securities as well as stock trading and portfolio management. In March 1996, Stephen began working with Gerald Coleman on the Ivy Funds at Mackenzie Financial as a Senior Investment Analyst & Portfolio Manager, responsible for investment research, security analysis, and the management of client portfolios. In August 1997, Stephen accompanied Mr. Coleman to CI Funds to assist in the creation and portfolio management of Harbour Fund and Harbour Growth & Income Fund.

6 Fund Numbers Class A Class B Class F Class I Front End DSC Front End Front End Front End Harbour Foreign Equity Fund CDN 2300 / US 2500 CDN 3300 / US 3500 CDN 4300 / US 4500 CDN 5300 / US 5500 Harbour Foreign Equity RSP Fund CDN 2200 CDN 3200 CDN 4200 CDN 5200 Harbour Fund CDN 690 CDN 890 CDN 714 CDN 899 Harbour Sector Fund CDN 290 / US 390 CDN 790 / US 490 CDN 262 / US 362 CI Harbour Guaranteed Investment Fund CDN 030 CDN 930 CDN 062 / US 752 Harbour Growth & Income Fund CDN 691 CDN 891 CDN 573 CDN 859 CI Harbour Growth & Income Guaranteed Investment Fund CDN 031 CDN 931 CDN 063 / US 753 Head Office CI Place, 151 Yonge Street, Eleventh Floor Toronto, Ontario M5C 2W7 Tel: Toll Free: English Client Services Team: French Client Services Team: Sales Offices Calgary Tel: Toll Free: Halifax Tel: Toll Free: Montreal Tel: Toll Free: Vancouver Tel: Toll Free: CI Teleservice: Automated telephone account information service@cifunds.com Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. The indicated rates of return are the historical annual compounded total returns including changes in unit value and reinvestment of all distributions and do not take into account sales, redemption, distribution, or optional charges or income taxes payable by any FOR DEALER USE ONLY securityholder that would have reduced returns. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. Harbour Funds is a registered trade mark of CI Mutual Funds Inc. CI Funds and the CI Funds logo design are trade marks of CI Mutual Funds Inc. HARBOUR BROCHURE 05/02