Semi-Annual Financial Statements a s a t J u n e 3 0, CI Segregated Funds

Transcription

1 Semi-Annual Financial Statements a s a t J u n e 3 0, CI Segregated Funds

2 A look inside Overview... 1 Equity Funds CI Global Segregated Fund... 2 CI Global Value Segregated Fund CI Harbour Segregated Fund CI Synergy American Segregated Fund Balanced Funds CI Harbour Growth & Income Segregated Fund Income Funds CI Money Market Segregated Fund Notes to the Financial Statements Legal Notice CI Investments Inc., the Manager of the Funds, appoints independent auditors to audit the Funds Annual Financial Statements. Under Canadian securities laws (National Instrument ), if an auditor has not reviewed the Semi-Annual Financial Statements, this must be disclosed in an accompanying notice. The Funds independent auditors have not performed a review of these Semi-Annual Financial Statements in accordance with standards established by the Canadian Institute of Chartered Accountants.

3 2 Queen Street East, Twentieth Floor Toronto, Ontario M5C 3G7 Telephone: Toll Free: Facsimile: Enclosed are the Financial Statements for your CI Investments segregated funds for the period ending June 30, 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 of the end of the period. Additional information about your funds can be found on our website, If you have any questions about your investments, please contact your financial advisor. CI is proud to partner with advisors across Canada. We believe investors are most successful when they follow an investment plan developed with the assistance of a qualified advisor. CANADA S INVESTMENT COMPANY CI has been investing on behalf of Canadians since 1965 and has grown to become one of Canada s largest investment fund companies. We manage over $100 billion on behalf of two million Canadians. CI is a subsidiary of CI Financial Corp., a TSX-listed financial services firm with $129 billion in assets at June 30, CI provides one of the industry s widest selections of investment products and services and a strong lineup of leading portfolio management teams. Our portfolio management expertise is offered through several platforms, including mutual funds, tax-efficient funds, guaranteed solutions, and managed solutions. You may also contact CI Client Services at Thank you for investing with us. 1

4 CI Global Segregated Fund Financial Statements (unaudited) Statements of Financial Position (in $000 s except for per unit amounts) Statements of Comprehensive Income for the periods ended June 30 (in $000 s except for per unit amounts) Assets Current assets Investments* Cash Fees rebate receivable Dividends receivable Interest receivable Receivable for investments sold Receivable for unit subscriptions Liabilities Current liabilities Bank overdraft Payable for investments purchased Payable for unit redemptions Management fees payable Administration fees payable Insurance fees payable Net assets attributable to contractholders as at as at as at Jun. 30, 2014 Dec. 31, 2013 Jan. 1, ,349 1,312 1, ,354 1,315 1, ,353 1,315 1,144 Income Net gain (loss) on investments Dividends Income distributions from investments Capital gain distributions from investments Net realized gain (loss) on sale of investments Change in unrealized appreciation (depreciation) in value of investments Other income Interest Fees rebate Expenses (Note 7) Management fees Administration fees Insurance fees Harmonized sales tax Increase (decrease) in net assets from operations attributable to contractholders (3) *Investments at cost Net assets attributable to contractholders per unit: Class A 1,229 1,268 1, Increase (decrease) in net assets from operations attributable to contractholders per unit: Class A For inception date of the Fund, please refer to Note 1 in the Notes to the Financial Statements. 2 CIG - 025

5 CI Global Segregated Fund Financial Statements (unaudited) Statements of Changes in Net Assets Attributable to Contractholders for the periods ended June 30 (in $000 s) Statements of Cash Flows for the periods ended June 30 (in $000 s) Fund Net assets attributable to contractholders at the beginning of period Increase (decrease) in net assets from operations attributable to contractholders Unit transactions Proceeds from issuance of units Amounts paid on redemption of units Net assets attributable to contractholders at the end of period ,315 1, (34) (36) (34) (32) 1,353 1,235 Cash flows from (used in) operating activities Increase (decrease) in net assets from operations attributable to contractholders Adjustments for: Net realized (gain) loss on sale of investments Change in unrealized (appreciation) depreciation in value of investments Proceeds from sale of investments Purchase of investments (Increase) decrease in dividends receivable (Increase) decrease in interest receivable Increase (decrease) in management fees payable Increase (decrease) in administration fees payable Increase (decrease) in insurance fees payable Net change in non-cash balances related to operations Net cash from (used in) operating activities (3) 3 (76) (132) Cash flows from (used in) financing activities Proceeds from issuances of units Amounts paid on redemption of units Net cash from (used in) financing activities - 4 (33) (36) (33) (32) Net increase (decrease) in cash Cash (bank overdraft), beginning of period Cash (bank overdraft), end of period 2 (5) Supplementary Information: Dividends received, net of withholding tax Interest received 3

6 CI Global Segregated Fund Fund Specific Notes to Financial Statements (unaudited) Unit Transactions (Note 6) for the periods ended June 30 Number of units at the beginning of period Units issued for cash Units redeemed Number of units at the end of period Class A , , (2,598) (3,095) 102, ,980 Reconciliation of Equity as previously reported under Canadian GAAP to IFRS (Note 10) (in $000 s) Equity Equity as reported under Canadian GAAP Revaluation of investments at FVTPL Net assets attributable to contractholders as at as at Dec. 31, 2013 Jan. 1, ,315 1,144 1,315 1,144 Reconciliation of Comprehensive Income as previously reported under Canadian GAAP to IFRS (Note 10) (in $000 s) Comprehensive Income Comprehensive income as reported under Canadian GAAP Revaluation of investments at FVTPL Increase (decrease) in net assets from operations attributable to contractholders as at as at Dec. 31, 2013 Jun. 30,

7 CI Global Segregated Fund Fund Specific Notes to Financial Statements (unaudited) Financial Instruments Risks (Note 9) Concentration Risk The CI Global Fund s investments were concentrated in the following segments: as at June 30, 2014 Categories Net Assets (%) U.S.A U.K. 9.1 Switzerland 8.6 Japan 6.0 France 5.3 Germany 3.6 Netherlands 2.4 Ireland 2.4 Belgium 2.2 South Korea 2.0 Sweden 1.4 Australia 1.4 Netherlands Antilles 1.3 Canada 1.1 Hong Kong 1.1 Taiwan 1.0 Chile 1.0 Jersey Island 1.0 Thailand 0.8 Cash & Equivalents 0.8 China 0.6 Italy 0.5 Brazil 0.5 Indonesia 0.5 Mexico 0.5 Russia 0.5 Foreign Currency Forward Contracts 0.5 India 0.4 Bermuda 0.4 Portugal 0.3 South Africa 0.1 Other Net Assets (Liabilities) (0.3) Concentration Risk (cont d) as at December 31, 2013 Categories Net Assets (%) U.S.A Cash & Equivalents 11.6 Switzerland 8.8 U.K. 7.4 France 4.6 Japan 4.5 Netherlands 3.5 Germany 2.9 Belgium 2.6 Australia 2.1 Canada 2.0 South Korea 1.8 Thailand 1.5 Mexico 1.0 Sweden 1.0 China 0.9 Taiwan 0.8 Ireland 0.7 Hong Kong 0.7 Russia 0.6 Cayman Islands 0.6 Bermuda 0.6 Netherlands Antilles 0.6 Indonesia 0.6 Brazil 0.6 South Africa 0.3 Other Net Assets (Liabilities) 0.1 Foreign Currency Forward Contracts (0.5) 5

8 CI Global Segregated Fund Fund Specific Notes to Financial Statements (unaudited) Concentration Risk (cont d) as at January 1, 2013 Categories Net Assets (%) U.S.A U.K. 7.8 Switzerland 6.7 Cash & Equivalents 5.6 Australia 4.8 Japan 4.1 Canada 2.8 France 2.8 Mexico 2.5 Belgium 2.1 Brazil 2.0 Netherlands 1.9 Germany 1.9 South Korea 1.8 Thailand 1.7 Hong Kong 1.3 China 1.0 Denmark 0.9 Taiwan 0.8 Cayman Islands 0.8 Indonesia 0.8 Bermuda 0.8 Russia 0.6 Netherlands Antilles 0.5 Israel 0.4 Italy 0.4 Ireland 0.3 Chile 0.3 Jersey Island 0.3 Sweden 0.2 Foreign Currency Forward Contracts (0.3) Credit Risk The Fund indirectly bears the credit risk exposure of the Underlying Fund. As at June 30, 2014, December 31, 2013 and January 1, 2013, the Underlying Fund had insignificant exposure to credit risk as it invested predominantly in stocks. The Underlying Fund was invested in fixed income securities, preferred securities and derivative instruments, if any, with the following credit ratings, as per table below. as at June 30, 2014 Credit Rating^ Net Assets (%) AAA/Aaa/A AA/Aa/A+ 0.5 Total 0.6 ^ Credit ratings are obtained from Standard & Poor s, where available, otherwise ratings are obtained from: Moody s Investors Service or Dominion Bond Rating Services, respectively. Other Price Risk The Fund indirectly bears the other price risk exposure of the Underlying Fund. As at June 30, 2014, December 31, 2013 and January 1, 2013, the Underlying Fund was exposed to other price risk as its holdings were sensitive to changes in general economic conditions across the world. The Underlying Fund was invested in foreign stocks. Other Price Risk (cont d) As at June 30, 2014, had the global markets increased or decreased by 10% (December 31, 2013 and January 1, %), with all other variables held constant, net assets attributable to contractholders of the Fund would have increased or decreased, respectively, by approximately $135,000 (December 31, $131,000 and January 1, $114,000). In practice, actual results may differ from this analysis and the difference may be material. Currency Risk The Fund indirectly bears the currency risk exposure of the Underlying Fund. As at June 30, 2014, December 31, 2013 and January 1, 2013, the Underlying Fund was exposed to currency risk as it invested predominantly in stocks that were denominated in currencies other than Canadian dollars, the functional currency of the Fund and the Underlying Fund. As a result, the Fund was affected by fluctuations in the value of such currencies relative to the Canadian dollar. The tables below summarize the Underlying Fund s exposure to currency risk. as at June 30, 2014 Currency Net Assets (%) US Dollar 70.1 British Pound 8.4 Swiss Franc 3.9 Euro 3.9 Japanese Yen 3.0 Korean Won 2.0 Hong Kong Dollar 1.7 Swedish Krona 1.4 Thai Baht 1.0 Australian Dollar 0.7 Chilean Peso 0.6 Brazilian Real 0.5 Indonesian Rupiah 0.5 Indian Rupee 0.4 South Africa Rand 0.2 Taiwan Dollar 0.2 Chinese Renminbi 0.1 Total 98.6 as at December 31, 2013 Currency Net Assets (%) US Dollar 56.0 British Pound 5.3 Swiss Franc 4.3 Euro 4.0 Japanese Yen 2.3 Australian Dollar 2.1 Korean Won 1.8 Hong Kong Dollar 1.7 Thai Baht 1.5 Swedish Krona 1.0 Indonesian Rupiah 0.6 Brazilian Real 0.4 Mexican Peso 0.4 Indian Rupee 0.4 South Africa Rand 0.3 Taiwan Dollar 0.2 Total

9 CI Global Segregated Fund Fund Specific Notes to Financial Statements (unaudited) Currency Risk (cont d) as at January 1, 2013 Currency Net Assets (%) US Dollar 51.8 Swiss Franc 6.8 Euro 4.5 Japanese Yen 4.1 British Pound 3.7 Hong Kong Dollar 2.9 Brazilian Real 2.8 Australian Dollar 2.3 Korean Won 1.8 Thai Baht 1.7 Mexican Peso 1.1 Danish Krone 0.9 Indonesian Rupiah 0.8 Taiwan Dollar 0.4 Israeli Shekel 0.4 Indian Rupee 0.4 Swedish Krona 0.2 Total 86.6 Fair Value Hierarchy (cont d) Long Positions at fair value as at January 1, 2013 Level 1 Level 2 Level 3 Total (in $000 s) (in $000 s) (in $000 s) (in $000 s) Underlying Fund 1,138 1,138 Total 1,138 1,138 As at June 30, 2014, had the Canadian dollar strengthened or weakened by 10% (December 31, 2013 and January 1, %) in relation to all other foreign currencies held in the Underlying Fund, with all other variables held constant, net assets attributable to contractholder of the Fund would have decreased or increased, respectively, by approximately $133,000 (December 31, $108,000 and January 1, $99,000). In practice, the actual results may differ from this analysis and the difference may be material. Interest Rate Risk The Fund indirectly bears the interest rate risk exposure of the Underlying Fund. As at June 30, 2014, December 31, 2013 and January 1, 2013, the Underlying Fund had insignificant exposure to interest rate risk as substantially all of its assets were invested in stocks. Fair Value Hierarchy The tables below summarize the inputs used by the Fund in valuing the Fund s investments carried at fair value. Long Positions at fair value as at June 30, 2014 Level 1 Level 2 Level 3 Total (in $000 s) (in $000 s) (in $000 s) (in $000 s) Underlying Fund 1,349 1,349 Total 1,349 1,349 Long Positions at fair value as at December 31, 2013 Level 1 Level 2 Level 3 Total (in $000 s) (in $000 s) (in $000 s) (in $000 s) Underlying Fund 1,312 1,312 Total 1,312 1,312 There were no transfers between Level 1, 2 and 3 during the period ended June 30, 2014 and the year ended December 31,

10 CI Global Segregated Fund Schedule of Investment Portfolio as at June 30, 2014 (unaudited) Top 25 Holdings of Underlying Fund No. of Average Fair Units/Shares Investment Cost ($) Value ($) 92,117 CI Global Fund (Class A) 1,229,022 1,348,593 Total Investments (99.6%) 1,229,022 1,348,593 Other Net Assets (Liabilities) (0.4%) 4,887 Net Assets Attributable to Contractholders (100.0%) 1,353,480 No. of Average Fair Units/Shares Investment Cost ($) Value ($) 339,400 JPMorgan Chase & Co., Warrants (28Oct18) 5,026,618 6,998,498 20,850 Roche Holding AG 4,229,325 6,633, ,150 PNC Financial Services Group Inc., Warrants (31Dec18) 2,993,167 6,572, ,600 Citigroup Inc. 5,236,473 6,461, ,910 Wells Fargo & Co., Warrants (28Oct18) 2,941,367 5,715, ,584 BHP Billiton PLC 4,455,771 4,711,470 52,950 QUALCOMM Inc. 2,866,506 4,473,550 35,400 EOG Resources Inc. 3,107,032 4,412, ,851 Credit Suisse Group AG 3,684,794 4,022,014 43,900 UCB S.A. 1,866,049 3,964, ,200 UBS AG 4,013,638 3,937,553 2,810 Samsung Electronics Co., Ltd. 2,393,551 3,915,781 24,550 Bayer AG 1,738,420 3,698,942 52,100 NXP Semiconductors N.V. 2,666,367 3,678, ,200 Telstra Corp., Ltd. 2,219,568 3,659,800 26,700 Schlumberger Ltd. 2,320,260 3,359,467 34,100 Novartis AG, Registered Shares 2,023,717 3,293,675 33,357 PepsiCo Inc. 2,261,041 3,179,026 22,700 Chevron Corp. 2,555,804 3,161,287 37,700 Nestle S.A., Registered Shares 2,426,900 3,115,365 92,900 Intel Corp. 2,078,138 3,062,213 49,100 Merck & Co., Inc. 2,442,088 3,030,024 17,900 Continental Resources Inc. 2,275,908 3,017, ,200 Forest City Enterprises Inc., Class A 2,633,582 2,971,714 26,185 Sanofi 2,681,841 2,967,284 The Underlying Fund is also managed by CI Investments Inc., the Manager of the Fund. Percentages shown in brackets in the Schedule of Investment Portfolio relate investments at fair value to net assets attributable to contractholders of the Fund. 8

11 CI Global Segregated Fund Financial Information (for the period ended June 30, 2014 and the years ended December 31) (unaudited) Financial Highlights The following table shows selected key financial information about the Fund and is intended to help you understand the Fund s financial performance for the past six periods, as applicable. The Fund s Net Asset Value per Unit Net assets at June 30, 2014 and December 31, of the period shown ($) (1) Ratios and Supplemental Data Net assets ($000 s) (1) Number of units outstanding (1) Portfolio turnover rate (%) (2) Management Expense Ratio Management expense ratio before taxes (%) (3) Harmonized sales tax/goods and services tax (%) (3) Management expense ratio after taxes (%) (3) Effective HST/GST rate for the period (%) (3) Class A * 2011* 2010* 2009* ,353 1,315 1,144 1,173 1,507 3, , , , , , , *Historical figures are based on Canadian GAAP. (1) This information is provided as at June 30, 2014 and December 31, of the periods shown. (2) The Fund s portfolio turnover rate indicates how actively the Fund s portfolio advisor manages its portfolio investments. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the period. The higher a fund s portfolio turnover rate in a period, the greater the trading costs payable by the fund in the period, and the greater the chance of an contractholder receiving taxable capital gains in the period. There is not necessarily a relationship between a high turnover rate and the performance of a fund. (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 the underlying fund and is expressed as an annualized percentage of average net assets for the periods shown. As of July 1, 2010, Ontario combined the federal goods and services tax ( GST - 5%) 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 contractholders residency and can be different from 13%. For any particular period, the rate shown will be prorated based on the different rates in effect during that period. For the year ended December 31, 2010 the rate applied is 5% for the period January 1, 2010 to June 30, 2010 and the Fund s Effective HST rate for the period starting July 1, The rate shown for the year ended December 31, 2010 is the time weighted average of these rates. For inception date of the Fund, please refer to Note 1 in the Notes to the Financial Statements. 9

12 CI Global Value Segregated Fund Financial Statements (unaudited) Statements of Financial Position (in $000 s except for per unit amounts) Statements of Comprehensive Income for the periods ended June 30 (in $000 s except for per unit amounts) Assets Current assets Investments* Cash Fees rebate receivable Dividends receivable Interest receivable Receivable for investments sold Receivable for unit subscriptions Liabilities Current liabilities Bank overdraft Payable for investments purchased Payable for unit redemptions Management fees payable Administration fees payable Insurance fees payable Net assets attributable to contractholders as at as at as at Jun. 30, 2014 Dec. 31, 2013 Jan. 1, Income Net gain (loss) on investments Dividends Income distributions from investments Capital gain distributions from investments Net realized gain (loss) on sale of investments Change in unrealized appreciation (depreciation) in value of investments Other income Interest Fees rebate Expenses (Note 7) Management fees Administration fees Insurance fees Harmonized sales tax Increase (decrease) in net assets from operations attributable to contractholders *Investments at cost Net assets attributable to contractholders per unit: Class A Increase (decrease) in net assets from operations attributable to contractholders per unit: Class A For inception date of the Fund, please refer to Note 1 in the Notes to the Financial Statements. 10 CIG - 024

13 CI Global Value Segregated Fund Financial Statements (unaudited) Statements of Changes in Net Assets Attributable to Contractholders for the periods ended June 30 (in $000 s) Statements of Cash Flows for the periods ended June 30 (in $000 s) Fund Net assets attributable to contractholders at the beginning of period Increase (decrease) in net assets from operations attributable to contractholders Unit transactions Proceeds from issuance of units Amounts paid on redemption of units Net assets attributable to contractholders at the end of period (19) (31) (19) (26) Cash flows from (used in) operating activities Increase (decrease) in net assets from operations attributable to contractholders Adjustments for: Net realized (gain) loss on sale of investments Change in unrealized (appreciation) depreciation in value of investments Proceeds from sale of investments Purchase of investments (Increase) decrease in dividends receivable (Increase) decrease in interest receivable Increase (decrease) in management fees payable Increase (decrease) in administration fees payable Increase (decrease) in insurance fees payable Net change in non-cash balances related to operations Net cash from (used in) operating activities (4) (1) (15) (58) Cash flows from (used in) financing activities Proceeds from issuances of units Amounts paid on redemption of units Net cash from (used in) financing activities - 5 (19) (31) (19) (26) Net increase (decrease) in cash Cash (bank overdraft), beginning of period Cash (bank overdraft), end of period (2) Supplementary Information: Dividends received, net of withholding tax Interest received 11

14 CI Global Value Segregated Fund Fund Specific Notes to Financial Statements (unaudited) Unit Transactions (Note 6) for the periods ended June 30 Number of units at the beginning of period Units issued for cash Units redeemed Number of units at the end of period Class A ,928 44, (1,577) (2,988) 38,351 42,123 Reconciliation of Equity as previously reported under Canadian GAAP to IFRS (Note 10) (in $000 s) Equity Equity as reported under Canadian GAAP Revaluation of investments at FVTPL Net assets attributable to contractholders as at as at Dec. 31, 2013 Jan. 1, Reconciliation of Comprehensive Income as previously reported under Canadian GAAP to IFRS (Note 10) (in $000 s) Comprehensive Income Comprehensive income as reported under Canadian GAAP Revaluation of investments at FVTPL Increase (decrease) in net assets from operations attributable to contractholders as at as at Dec. 31, 2013 Jun. 30,

15 CI Global Value Segregated Fund Fund Specific Notes to Financial Statements (unaudited) Financial Instruments Risks (Note 9) Concentration Risk The CI Global Value Fund s investments were concentrated in the following segments: as at June 30, 2014 Categories Net Assets (%) U.S.A Japan 16.0 U.K Switzerland 7.3 Germany 7.1 France 5.7 Ireland 4.0 Canada 2.8 Cash & Equivalents 2.2 Bermuda 1.8 Mexico 1.7 Netherlands 1.5 Panama 1.3 Hong Kong 0.8 Brazil 0.8 South Africa 0.7 Mauritius 0.6 Thailand 0.4 Turkey 0.4 Russia 0.3 Other Net Assets (Liabilities) 0.2 as at December 31, 2013 Categories Net Assets (%) U.S.A Japan 14.5 U.K Germany 8.9 Switzerland 7.2 France 6.4 Canada 4.3 Ireland 3.7 Cash & Equivalents 2.5 Bermuda 1.6 Netherlands 1.4 Panama 1.4 Mexico 1.1 Hong Kong 1.0 South Africa 0.7 Mauritius 0.5 Turkey 0.4 Australia 0.3 Concentration Risk (cont d) as at January 1, 2013 Categories Net Assets (%) U.S.A Japan 12.0 U.K Switzerland 9.6 Germany 9.1 Canada 7.7 France 3.1 Ireland 1.7 Netherlands 1.5 Sweden 1.3 South Africa 1.2 Hong Kong 1.0 Singapore 0.9 Australia 0.8 Bermuda 0.7 Malaysia 0.5 Netherlands Antilles 0.5 Cash & Equivalents 0.3 Foreign Currency Forward Contracts 0.1 Credit Risk The Fund indirectly bears the credit risk exposure of the Underlying Fund. As at June 30, 2014, December 31, 2013 and January 1, 2013, the Underlying Fund had insignificant exposure to credit risk as it invested predominantly in stocks. The Underlying Fund was invested in fixed income securities, preferred securities and derivative instruments, if any, with the following credit ratings, as per tables below. as at December 31, 2013 Credit Rating^ Net Assets (%) Not Rated 0.7 Total 0.7 as at January 1, 2013 Credit Rating^ Net Assets (%) AA/Aa/A+ 0.1 Not Rated 0.6 Total 0.7 ^ Credit ratings are obtained from Standard & Poor s, where available, otherwise ratings are obtained from: Moody s Investors Service or Dominion Bond Rating Services, respectively. Other Price Risk The Fund indirectly bears the other price risk exposure of the Underlying Fund. As at June 30, 2014, December 31, 2013 and January 1, 2013, the Underlying Fund was exposed to other price risk as its holdings were sensitive to changes in general economic conditions across the world. The Underlying Fund was invested in foreign stocks. As at June 30, 2014, had the global markets increased or decreased by 10% (December 31, 2013 and January 1, %), with all other variables held constant, net assets attributable to contractholders of the Fund would have increased or decreased, respectively, by approximately $49,000 (December 31, $49,000 and January 1, $43,000). In practice, actual results may differ from this analysis and the difference may be material. 13

16 CI Global Value Segregated Fund Fund Specific Notes to Financial Statements (unaudited) Currency Risk The Fund indirectly bears the currency risk exposure of the Underlying Fund. As at June 30, 2014, December 31, 2013 and January 1, 2013, the Underlying Fund was exposed to currency risk as it invested predominantly in stocks that were denominated in currencies other than Canadian dollars, the functional currency of the Fund and the Underlying Fund. As a result, the Fund was affected by fluctuations in the value of such currencies relative to the Canadian dollar. The tables below summarize the Underlying Fund s exposure to currency risk. as at June 30, 2014 Currency Net Assets (%) US Dollar 57.0 Euro 14.3 Japanese Yen 8.9 Swiss Franc 7.3 British Pound 6.3 Hong Kong Dollar 0.8 South Africa Rand 0.7 Singapore Dollar 0.6 Thai Baht 0.4 Turkish Lira 0.4 Total 96.7 as at December 31, 2013 Currency Net Assets (%) US Dollar 52.3 Euro 16.8 Japanese Yen 10.6 Swiss Franc 7.2 British Pound 6.3 Hong Kong Dollar 1.0 Singapore Dollar 0.6 South Africa Rand 0.6 Turkish Lira 0.4 Australian Dollar 0.2 Total 96.0 Interest Rate Risk The Fund indirectly bears the interest rate risk exposure of the Underlying Fund. As at June 30, 2014, December 31, 2013 and January 1, 2013, the Underlying Fund had insignificant exposure to interest rate risk as substantially all of its assets were invested in stocks. Fair Value Hierarchy The tables below summarize the inputs used by the Fund in valuing the Fund s investments carried at fair value. Long Positions at fair value as at June 30, 2014 Level 1 Level 2 Level 3 Total (in $000 s) (in $000 s) (in $000 s) (in $000 s) Underlying Fund Total Long Positions at fair value as at December 31, 2013 Level 1 Level 2 Level 3 Total (in $000 s) (in $000 s) (in $000 s) (in $000 s) Underlying Fund Total There were no transfers between Level 1, 2 and 3 during the period ended June 30, 2014 and the year ended December 31, Long Positions at fair value as at January 1, 2013 Level 1 Level 2 Level 3 Total (in $000 s) (in $000 s) (in $000 s) (in $000 s) Underlying Fund Total as at January 1, 2013 Currency Net Assets (%) US Dollar 53.5 Euro 13.7 Japanese Yen 9.8 Swiss Franc 6.5 British Pound 4.7 Swedish Krona 1.3 South Africa Rand 1.2 Hong Kong Dollar 1.0 Singapore Dollar 0.9 Australian Dollar 0.8 Malaysian Ringgit 0.5 Total 93.9 As at June 30, 2014, had the Canadian dollar strengthened or weakened by 10% (December 31, 2013 and January 1, %) in relation to all other foreign currencies held in the Underlying Fund, with all other variables held constant, net assets attributable to contractholder of the Fund would have decreased or increased, respectively, by approximately $47,000 (December 31, $47,000 and January 1, $40,000). In practice, the actual results may differ from this analysis and the difference may be material. 14

17 CI Global Value Segregated Fund Schedule of Investment Portfolio as at June 30, 2014 (unaudited) Top 25 Holdings of Underlying Fund No. of Average Fair Units/Shares Investment Cost ($) Value ($) 33,407 CI Global Value Fund (Class A) 370, ,744 Total Investments (100.0%) 370, ,744 Other Net Assets (Liabilities) (0.0%) 116 Net Assets Attributable to Contractholders (100.0%) 487,860 No. of Average Fair Units/Shares Investment Cost ($) Value ($) 52,330 Exelon Corp. 1,718,985 2,036, ,520 Bank of Yokohama Ltd. 1,812,581 1,992,037 6,000 Roche Holding AG 1,054,072 1,908,920 16,670 Sanofi 1,828,366 1,889,044 18,560 Novartis AG, Registered Shares 1,086,508 1,792,687 61,743 GlaxoSmithKline PLC 1,700,081 1,762,926 20,759 Nestle S.A., Registered Shares 926,729 1,715,434 37,073 Willis Group Holdings PLC 1,331,425 1,712,406 Cash & Equivalents 1,615,189 46,908 Diageo PLC 1,063,841 1,597,969 16,680 PepsiCo Inc. 1,152,418 1,589,656 18,902 Deutsche Boerse AG 1,068,876 1,564,928 55,335 General Electric Co. 1,457,068 1,551,267 40,010 Unum Group 785,332 1,483, ,565 Sumitomo Mitsui Trust Holdings Inc. 1,311,743 1,474,983 17,513 Wal-Mart Stores Inc. 1,036,042 1,402,452 12,383 Apache Corp. 1,015,976 1,329,142 17,500 Time Warner Inc. 593,581 1,311,431 58,064 Mitsubishi Corp. 1,249,085 1,288,128 88,133 Kyowa Hakko Kirin Co., Ltd. 1,005,065 1,272,224 34,510 Grupo Televisa S.A., ADR 961,973 1,263,068 13,026 Covidien PLC 535,798 1,253,091 13,120 Philip Morris International Inc. 896,743 1,179,978 31,880 Noble Corp PLC 1,052,891 1,141,304 8,018 Siemens AG, Registered Shares 714,740 1,129,601 The Underlying Fund is also managed by CI Investments Inc., the Manager of the Fund. Percentages shown in brackets in the Schedule of Investment Portfolio relate investments at fair value to net assets attributable to contractholders of the Fund. 15

18 CI Global Value Segregated Fund Financial Information (for the period ended June 30, 2014 and the years ended December 31) (unaudited) Financial Highlights The following table shows selected key financial information about the Fund and is intended to help you understand the Fund s financial performance for the past six periods, as applicable. The Fund s Net Asset Value per Unit Net assets at June 30, 2014 and December 31, of the period shown ($) (1) Ratios and Supplemental Data Net assets ($000 s) (1) Number of units outstanding (1) Portfolio turnover rate (%) (2) Management Expense Ratio Management expense ratio before taxes (%) (3) Harmonized sales tax/goods and services tax (%) (3) Management expense ratio after taxes (%) (3) Effective HST/GST rate for the period (%) (3) Class A * 2011* 2010* 2009* ,351 39,928 44,573 63,348 74,530 94, *Historical figures are based on Canadian GAAP. (1) This information is provided as at June 30, 2014 and December 31, of the periods shown. (2) The Fund s portfolio turnover rate indicates how actively the Fund s portfolio advisor manages its portfolio investments. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the period. The higher a fund s portfolio turnover rate in a period, the greater the trading costs payable by the fund in the period, and the greater the chance of an contractholder receiving taxable capital gains in the period. There is not necessarily a relationship between a high turnover rate and the performance of a fund. (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 the underlying fund and is expressed as an annualized percentage of average net assets for the periods shown. As of July 1, 2010, Ontario combined the federal goods and services tax ( GST - 5%) 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 contractholders residency and can be different from 13%. For any particular period, the rate shown will be prorated based on the different rates in effect during that period. For the year ended December 31, 2010 the rate applied is 5% for the period January 1, 2010 to June 30, 2010 and the Fund s Effective HST rate for the period starting July 1, The rate shown for the year ended December 31, 2010 is the time weighted average of these rates. For inception date of the Fund, please refer to Note 1 in the Notes to the Financial Statements. 16

19 CI Harbour Segregated Fund Financial Statements (unaudited) Statements of Financial Position (in $000 s except for per unit amounts) Statements of Comprehensive Income for the periods ended June 30 (in $000 s except for per unit amounts) Assets Current assets Investments* Cash Fees rebate receivable Dividends receivable Interest receivable Receivable for investments sold Receivable for unit subscriptions Liabilities Current liabilities Bank overdraft Payable for investments purchased Payable for unit redemptions Management fees payable Administration fees payable Insurance fees payable Net assets attributable to contractholders as at as at as at Jun. 30, 2014 Dec. 31, 2013 Jan. 1, ,141 8,781 8, ,178 8,801 8, ,177 8,800 8,784 Income Net gain (loss) on investments Dividends Income distributions from investments Capital gain distributions from investments Net realized gain (loss) on sale of investments Change in unrealized appreciation (depreciation) in value of investments Other income Interest Fees rebate Expenses (Note 7) Management fees Administration fees Insurance fees Harmonized sales tax Increase (decrease) in net assets from operations attributable to contractholders *Investments at cost Net assets attributable to contractholders per unit: Class A 4,339 4,463 4, Increase (decrease) in net assets from operations attributable to contractholders per unit: Class A For inception date of the Fund, please refer to Note 1 in the Notes to the Financial Statements. 17 CIG - 021

20 CI Harbour Segregated Fund Financial Statements (unaudited) Statements of Changes in Net Assets Attributable to Contractholders for the periods ended June 30 (in $000 s) Statements of Cash Flows for the periods ended June 30 (in $000 s) Fund Net assets attributable to contractholders at the beginning of period Increase (decrease) in net assets from operations attributable to contractholders Unit transactions Proceeds from issuance of units Amounts paid on redemption of units Net assets attributable to contractholders at the end of period ,800 8, (215) (414) (193) (343) 9,177 8,681 Cash flows from (used in) operating activities Increase (decrease) in net assets from operations attributable to contractholders Adjustments for: Net realized (gain) loss on sale of investments Change in unrealized (appreciation) depreciation in value of investments Proceeds from sale of investments Purchase of investments (Increase) decrease in dividends receivable (Increase) decrease in interest receivable Increase (decrease) in management fees payable Increase (decrease) in administration fees payable Increase (decrease) in insurance fees payable Net change in non-cash balances related to operations Net cash from (used in) operating activities (125) (201) (484) (78) (26) - (1) Cash flows from (used in) financing activities Proceeds from issuances of units Amounts paid on redemption of units Net cash from (used in) financing activities (216) (414) (194) (338) Net increase (decrease) in cash Cash (bank overdraft), beginning of period Cash (bank overdraft), end of period Supplementary Information: Dividends received, net of withholding tax Interest received 18

21 CI Harbour Segregated Fund Fund Specific Notes to Financial Statements (unaudited) Unit Transactions (Note 6) for the periods ended June 30 Number of units at the beginning of period Units issued for cash Units redeemed Number of units at the end of period Class A , , ,591 (7,267) (15,242) 296, ,104 Reconciliation of Equity as previously reported under Canadian GAAP to IFRS (Note 10) (in $000 s) Equity Equity as reported under Canadian GAAP Revaluation of investments at FVTPL Net assets attributable to contractholders as at as at Dec. 31, 2013 Jan. 1, ,800 8,784 8,800 8,784 Reconciliation of Comprehensive Income as previously reported under Canadian GAAP to IFRS (Note 10) (in $000 s) Comprehensive Income Comprehensive income as reported under Canadian GAAP Revaluation of investments at FVTPL Increase (decrease) in net assets from operations attributable to contractholders as at as at Dec. 31, 2013 Jun. 30,

22 CI Harbour Segregated Fund Fund Specific Notes to Financial Statements (unaudited) Financial Instruments Risks (Note 9) Concentration Risk The Harbour Fund s investments were concentrated in the following segments: as at June 30, 2014 Categories Net Assets (%) Financials 26.8 Energy 15.1 Short-Term Investments 12.7 Consumer Staples 12.5 Materials 10.5 Information Technology 6.7 Consumer Discretionary 6.1 Cash & Equivalents 5.5 Industrials 2.7 Private Placements 1.0 Foreign Currency Forward Contracts 0.4 as at December 31, 2013 Categories Net Assets (%) Financials 28.1 Energy 17.1 Short-Term Investments 12.8 Consumer Staples 11.3 Materials 9.9 Information Technology 8.2 Consumer Discretionary 4.7 Industrials 2.9 Cash & Equivalents 2.6 Health Care 2.0 Other Net Assets (Liabilities) 0.6 Foreign Currency Forward Contracts (0.2) as at January 1, 2013 Categories Net Assets (%) Financials 22.0 Energy 18.9 Information Technology 12.7 Materials 12.3 Consumer Staples 7.6 Industrials 7.5 Consumer Discretionary 6.8 Short-Term Investments 5.3 Health Care 3.9 Cash & Equivalents 2.9 Foreign Currency Forward Contracts 0.1 Credit Risk The Fund indirectly bears the credit risk exposure of the Underlying Fund. As at June 30, 2014, December 31, 2013 and January 1, 2013, the Underlying Fund did not have a significant exposure to credit risk as it invested predominantly in stocks. Credit Risk (cont d) The Underlying Fund was invested in fixed income securities, preferred securities and derivative instruments, if any, with the following credit ratings, as per tables below. as at June 30, 2014 Credit Rating^ Net Assets (%) AAA/Aaa/A AA/Aa/A+ 0.3 Total 13.0 as at December 31, 2013 Credit Rating^ Net Assets (%) AAA/Aaa/A Total 12.9 as at January 1, 2013 Credit Rating^ Net Assets (%) AAA/Aaa/A AA/Aa/A+ 0.2 Total 5.6 ^ Credit ratings are obtained from Standard & Poor s, where available, otherwise ratings are obtained from: Moody s Investors Service or Dominion Bond Rating Services, respectively. Other Price Risk The Fund indirectly bears the other price risk exposure of the Underlying Fund. As at June 30, 2014, December 31, 2013 and January 1, 2013, the Underlying Fund was exposed to other price risk as its holdings were sensitive to changes in general economic conditions in Canada. The Underlying Fund was invested in Canadian stocks. As at June 30, 2014, had the Canadian markets increased or decreased by 10% (December 31, 2013 and January 1, %), with all other variables held constant, net assets attributable to contractholders of the Fund would have increased or decreased, respectively, by approximately $748,000 (December 31, $878,000 and January 1, $877,000). In practice, actual results may differ from this analysis and the difference may be material. Currency Risk The Fund indirectly bears the currency risk exposure of the Underlying Fund. As at June 30, 2014, December 31, 2013 and January 1, 2013, the Underlying Fund was exposed to currency risk although the majority of the Underlying Fund s assets were invested in stocks denominated in Canadian dollars, the functional currency of the Underlying Fund. The tables below summarize the Underlying Fund s exposure to currency risk. as at June 30, 2014 Currency Net Assets (%) US Dollar 15.1 British Pound 0.3 Australian Dollar 0.1 Euro 0.1 Total

23 CI Harbour Segregated Fund Fund Specific Notes to Financial Statements (unaudited) Currency Risk (cont d) as at December 31, 2013 Currency Net Assets (%) US Dollar 15.0 British Pound 0.5 Australian Dollar 0.2 Taiwan Dollar (1.8) Total 13.9 as at January 1, 2013 Currency Net Assets (%) US Dollar 5.4 Australian Dollar 0.3 British Pound 0.1 Taiwan Dollar (3.0) Total 2.8 As at June 30, 2014, had the Canadian dollar strengthened or weakened by 10% (December 31, 2013 and January 1, %) in relation to all other foreign currencies held in the Underlying Fund, with all other variables held constant, net assets attributable to contractholder of the Fund would have decreased or increased, respectively, by approximately $143,000 (December 31, $122,000 and January 1, $25,000). In practice, the actual results may differ from this analysis and the difference may be material. Interest Rate Risk The Fund indirectly bears the interest rate risk exposure of the Underlying Fund. As at June 30, 2014, December 31, 2013 and January 1, 2013, the Underlying Fund did not have a significant exposure to interest rate risk as substantially all its assets were invested in stocks. Fair Value Hierarchy The tables below summarize the inputs used by the Fund in valuing the Fund s investments carried at fair value. Long Positions at fair value as at June 30, 2014 Level 1 Level 2 Level 3 Total (in $000 s) (in $000 s) (in $000 s) (in $000 s) Underlying Fund 9,141 9,141 Total 9,141 9,141 Long Positions at fair value as at December 31, 2013 Level 1 Level 2 Level 3 Total (in $000 s) (in $000 s) (in $000 s) (in $000 s) Underlying Fund 8,781 8,781 Total 8,781 8,781 There were no transfers between Level 1, 2 and 3 during the period ended June 30, 2014 and the year ended December 31, Long Positions at fair value as at January 1, 2013 Level 1 Level 2 Level 3 Total (in $000 s) (in $000 s) (in $000 s) (in $000 s) Underlying Fund 8,766 8,766 Total 8,766 8,766 21

24 CI Harbour Segregated Fund Schedule of Investment Portfolio as at June 30, 2014 (unaudited) Top 25 Holdings of Underlying Fund No. of Average Fair Units/Shares Investment Cost ($) Value ($) 365,793 Harbour Fund (Class A) 4,339,012 9,141,171 Total Investments (99.6%) 4,339,012 9,141,171 Other Net Assets (Liabilities) (0.4%) 36,183 Net Assets Attributable to Contractholders (100.0%) 9,177,354 No. of Average Fair Units/Shares Investment Cost ($) Value ($) 453,489,051 Short-Term Investments 453,489, ,296,485 Cash & Equivalents 198,207,172 2,630,000 The Bank of Nova Scotia 75,361, ,098,200 2,432,700 Empire Co., Ltd., Class A 179,945, ,516,712 1,635,000 Canadian Imperial Bank of Commerce 104,968, ,758,500 4,562,000 Diageo PLC 76,336, ,409,157 2,330,000 Discover Financial Services 42,720, ,052,463 3,261,000 Suncor Energy Inc. 65,595, ,375,500 1,874,000 Intact Financial Corp. 115,586, ,888,920 4,270,000 Ultra Petroleum Corp. 92,176, ,238,151 3,801,000 Cenovus Energy Inc. 80,853, ,476,590 1,455,000 George Weston Ltd. 102,487, ,523,050 2,350,000 The Bank of New York Mellon Corp. 47,077,979 93,956,882 2,600,000 BHP Billiton Ltd. 44,124,803 93,909,089 4,425,000 Cameco Corp. 98,692,443 92,615,250 1,330,000 Canadian National Railway Co. 20,137,469 92,302,000 2,767,000 Intel Corp. 56,895,748 91,207,130 4,291,000 Barrick Gold Corp. 130,907,097 83,846,140 1,700,000 Canadian Natural Resources Ltd. 50,583,041 83,351,000 4,958,000 Dream Unlimited Corp. 9,584,161 76,501,940 1,289,000 Tim Hortons Inc. 42,860,552 75,238, ,000 Apple Inc. 65,539,548 74,250,419 2,475,000 Goldcorp Inc. 58,351,695 73,705,500 1,930,000 CGI Group Inc. 73,333,988 72,992,600 1,030,000 PetSmart Inc. 24,082,985 65,705,173 The Underlying Fund is also managed by CI Investments Inc., the Manager of the Fund. Percentages shown in brackets in the Schedule of Investment Portfolio relate investments at fair value to net assets attributable to contractholders of the Fund. 22

25 CI Harbour Segregated Fund Financial Information (for the period ended June 30, 2014 and the years ended December 31) (unaudited) Financial Highlights The following table shows selected key financial information about the Fund and is intended to help you understand the Fund s financial performance for the past six periods, as applicable. The Fund s Net Asset Value per Unit Net assets at June 30, 2014 and December 31, of the period shown ($) (1) Ratios and Supplemental Data Net assets ($000 s) (1) Number of units outstanding (1) Portfolio turnover rate (%) (2) Management Expense Ratio Management expense ratio before taxes (%) (3) Harmonized sales tax/goods and services tax (%) (3) Management expense ratio after taxes (%) (3) Effective HST/GST rate for the period (%) (3) Class A * 2011* 2010* 2009* ,177 8,800 8,784 9,602 12,816 14, , , , , , , *Historical figures are based on Canadian GAAP. (1) This information is provided as at June 30, 2014 and December 31, of the periods shown. (2) The Fund s portfolio turnover rate indicates how actively the Fund s portfolio advisor manages its portfolio investments. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the period. The higher a fund s portfolio turnover rate in a period, the greater the trading costs payable by the fund in the period, and the greater the chance of an contractholder receiving taxable capital gains in the period. There is not necessarily a relationship between a high turnover rate and the performance of a fund. (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 the underlying fund and is expressed as an annualized percentage of average net assets for the periods shown. As of July 1, 2010, Ontario combined the federal goods and services tax ( GST - 5%) 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 contractholders residency and can be different from 13%. For any particular period, the rate shown will be prorated based on the different rates in effect during that period. For the year ended December 31, 2010 the rate applied is 5% for the period January 1, 2010 to June 30, 2010 and the Fund s Effective HST rate for the period starting July 1, The rate shown for the year ended December 31, 2010 is the time weighted average of these rates. For inception date of the Fund, please refer to Note 1 in the Notes to the Financial Statements. 23

26 CI Synergy American Segregated Fund Financial Statements (unaudited) Statements of Financial Position (in $000 s except for per unit amounts) Statements of Comprehensive Income for the periods ended June 30 (in $000 s except for per unit amounts) Assets Current assets Investments* Cash Fees rebate receivable Dividends receivable Interest receivable Receivable for investments sold Receivable for unit subscriptions Liabilities Current liabilities Bank overdraft Payable for investments purchased Payable for unit redemptions Management fees payable Administration fees payable Insurance fees payable Net assets attributable to contractholders as at as at as at Jun. 30, 2014 Dec. 31, 2013 Jan. 1, Income Net gain (loss) on investments Dividends Income distributions from investments Capital gain distributions from investments Net realized gain (loss) on sale of investments Change in unrealized appreciation (depreciation) in value of investments Other income Interest Fees rebate Expenses (Note 7) Management fees Administration fees Insurance fees Harmonized sales tax Increase (decrease) in net assets from operations attributable to contractholders (4) *Investments at cost Net assets attributable to contractholders per unit: Class A Increase (decrease) in net assets from operations attributable to contractholders per unit: Class A For inception date of the Fund, please refer to Note 1 in the Notes to the Financial Statements. 24 CIG - 023

27 CI Synergy American Segregated Fund Financial Statements (unaudited) Statements of Changes in Net Assets Attributable to Contractholders for the periods ended June 30 (in $000 s) Statements of Cash Flows for the periods ended June 30 (in $000 s) Fund Net assets attributable to contractholders at the beginning of period Increase (decrease) in net assets from operations attributable to contractholders Unit transactions Proceeds from issuance of units Amounts paid on redemption of units Net assets attributable to contractholders at the end of period (14) (17) (14) (17) Cash flows from (used in) operating activities Increase (decrease) in net assets from operations attributable to contractholders Adjustments for: Net realized (gain) loss on sale of investments Change in unrealized (appreciation) depreciation in value of investments Proceeds from sale of investments Purchase of investments (Increase) decrease in dividends receivable (Increase) decrease in interest receivable Increase (decrease) in management fees payable Increase (decrease) in administration fees payable Increase (decrease) in insurance fees payable Net change in non-cash balances related to operations Net cash from (used in) operating activities (1) 4 (56) (96) Cash flows from (used in) financing activities Proceeds from issuances of units Amounts paid on redemption of units Net cash from (used in) financing activities (12) (17) (12) (17) Net increase (decrease) in cash Cash (bank overdraft), beginning of period Cash (bank overdraft), end of period Supplementary Information: Dividends received, net of withholding tax Interest received 25