This annual management report of fund performance contains financial highlights but does not contain the complete annual financial statements of the investment fund. You can get a copy of the annual financial statements at your request, and at no cost, by calling 1-888-664-4784, by writing to us at United Financial, 2 Queen Street East, Twentieth Floor, Toronto, ON, M5C 3G7 or by visiting our website at www.assante.com/united financial or SEDAR at www.sedar.com. Securityholders may also contact us using one of these methods to request a copy of the investment fund s proxy voting policies and procedures, proxy voting disclosure record, or quarterly portfolio disclosure. INVESTMENT OBJECTIVE AND STRATEGIES The objective of the International Equity Value Corporate Class (the Fund ) is to provide long-term capital appreciation primarily through investing in a diversified portfolio of equity and equity-related securities of international issuers which the portfolio advisor believes to be undervalued relative to their perceived growth potential. Equity-related securities include convertible preferred shares, convertible debt obligations and warrants. The Fund also may invest in other mutual funds. The portfolio advisors do not invest in Canadian or U.S. issuers. Using both value-based and price-driven approaches, the portfolio advisors allocate the Fund s investments between regions based on an on-going analysis of trends in international markets. When the portfolio advisors deem such investments appropriate, the assets of this Fund may be invested in short-term fixed income securities or cash equivalents. The Fund may use derivatives, but only as permitted by securities regulations. This Fund may also enter into securities lending transactions, repurchase transactions and reverse repurchase transactions, to the extent permitted by securities regulations, to earn additional income. RISK The risks of investing in the Fund remain as discussed in the prospectus. This Fund is suitable for investors who can tolerate medium risk, want an investment that is focused on generating capital growth and are planning to hold their investment for the medium and/or long term. This Fund is designed for investors who want to defer tax on capital gains outside a registered plan. RESULTS OF OPERATIONS The net asset value of the Fund increased by $14.9 million to $.4 million from March 31, 12 to March 31, 13. The Fund had net redemptions of $6. million during the period. The portfolio s performance increased assets by $21.2 million. The Fund paid distributions totalling $.3 million. The one-year return for Class A shares, Class E shares, Class ET8 shares, Class F shares, Class I shares, Class IT8 shares, Class W shares and Class WT8 shares was 8.6%, 9.3%, 9.3%,.%, 12.1%, 12.%, 11.7% and 11.7%, respectively, compared to the return of the MSCI EAFE Total Return Index of 13.9% for the same period. Altrinsic Global Advisors LLC The period began with markets declining 5.27% in the second quarter of 12 as measured by the MSCI EAFE (Net) Index in Canadian dollars. However, growing confidence in policymakers efforts to address relatively weak global economic conditions contributed to the strong performance of global equity markets in the third quarter. Equities and other risky assets continued their ascent during the fourth quarter as a series of extraordinary policy measures effectively mitigated near-term risks. In the first quarter of 13, international equity markets reached new highs against a backdrop of improving confidence in important economic indicators (U.S. housing and China s GDP) coupled with the continued pursuit of unconventional stimulus policies by the major central banks. For the 12 months ending March 31, 13, international equity markets gained 13.9% as measured by the MSCI EAFE Total Return Index. The portfolio underperformed the benchmark during the period. Positive attribution was derived from holdings in the consumer staples, health care, and telecommunications sectors. Common attributes among our holdings in the consumer staples sector are well-known and trusted brands, diversification by product and/or region, consistent cash generation, and sensible cash deployment by management. These continued to be favored by investors seeking consistent growth in uncertain times leading to outperformance versus the broader market, including Heineken, Diageo PLC, Symrise AG, Henkel, Nestlé, and L Oreal. In particular, Heineken s stock benefited from its acquisition of the 58% of Asia Pacific Breweries it did not already own. In health care, big pharmaceutical stocks, including Roche and Novartis, performed well due to good results and attractive yields. Roche has been able to protect its Herceptin franchise with Perjeta and TDM-1, and it recently presented data on a follow-on drug to protect its Rituxan franchise. Among the portfolio s telecommunications holdings, Vodafone performed well due to speculation that it would be acquired by Verizon. Holdings in the industrial, materials and financial sectors detracted from relative performance. In industrials, Mitsubishi Corp., which has a lot of commodity exposure, underperformed due to weak commodity prices. In the materials sector, global diversified miners like Anglo American have had to rein in capital spending plans and keep their heads down amid the negative sentiment. However, Anglo American s assets are high-quality and represent exposure to attractive commodities where supply constraints should support pricing over the longer term. In financials, NKSJ Holdings Inc., a Japanese insurer saw CIG - 17664
lackluster stock performance during the year due to concerns about its ability to improve its auto insurance profitability in the near-term. Recent changes to claims-paying rules and the fact that competitors are increasing prices significantly leaves us much more constructive on the opportunity. RECENT DEVELOPMENTS Altrinsic Global Advisors LLC The major risk factors we currently identify are at the macro level. These primarily are: 1) policy and the consequences of central bank experimentation, especially in Europe; 2) the apparent complacency in global credit markets at a time when most yields are at or near historically low levels; and 3) China, including the implications of inflation and a slowing economy. These macro waters are likely to be muddied for a long time, but the uncertainty they create also produces emerging opportunities at the company-specific level. International Financial Reporting Standards As previously confirmed by the Canadian Accounting Standards Board ( AcSB ), most Canadian publicly accountable entities adopted International Financial Reporting Standards ( IFRS ), as published by the International Accounting Standards Board, on January 1, 11. However, the AcSB has allowed most investment funds to defer adoption of IFRS until fiscal years beginning on or after January 1, 14. Accordingly, the Fund will adopt IFRS for its fiscal period beginning April 1, 14, and will issue its initial financial statements in accordance with IFRS, including comparative information, for the interim period ending September, 14. RELATED PARTY TRANSACTIONS Manager and Registrar CI Investments Inc. is the Manager and Registrar of the Fund. CI Investments Inc. is a subsidiary of CI Financial Corp. The Manager, in consideration for management fees, provided management services required in the day-to-day operations of the Fund. The Manager bears all of the operating expenses of the Fund (other than taxes, borrowing costs and new governmental fees) in return for a fixed administration fee. Management fee and fixed administration fee rates as at March 31, 13, for each of the classes are shown below: W Shares The Manager received $.2 million in management fees and $.4 million in fixed administrative fees for the period. Management Fees Approximately 28% of total management fees were used to pay for sales and trailing commissions and other services required. The remaining 72% of management fees were used to pay for investment management and other general administration. Principal Distributor The Manager has the exclusive right to arrange for the distribution of shares of the Fund. Pursuant to a series of agreements, the right to distribute such shares has been granted, on a collective basis, to the following dealers, each of which is an affiliate of the Manager. Assante Capital Management Ltd. Assante Financial Management Ltd. Broker commissions During the period, the Fund did not pay brokerage commissions to The Bank of Nova Scotia or its subsidiaries. The Bank of Nova Scotia has a significant interest in CI Financial Corp., the parent company of CI Investments Inc. Independent Review Committee Annual management fee rate (%) Paid directly by investor The Fund received standing instructions from the Board of Governors ( BoG ) in its capacity as the Independent Review Committee ( IRC ) with respect to the following Related Party Transactions: Annual fixed administration fee rate (%)T.22 ET8 Shares 1.9.22 IT8 Shares WT8 Shares Paid directly by investor Paid directly by investor.22 Annual management fee rate (%) Annual fixed administration fee rate (%)T A Shares 2.5.22 E Shares 1.9.22 F Shares 1.5.22 I Shares Paid directly by investor a) trades in securities of CI Financial Corp. and The Bank of Nova Scotia; b) purchases or sales of securities of an issuer from or to another investment fund managed by the Manager (referred to as Inter-Fund Trades ); and c) mergers of funds with another fund that is subject to National Instrument 81-2 ( Fund Mergers ). The applicable standing instructions require that Related Party Transactions be conducted in accordance with the Manager s policies and procedures. The Manager is required to advise the BoG of any material breach of a condition of the standing instructions. The standing instructions require, among other things, that the investment decision in respect to Related Party Transactions (a) are made by the Manager free from any influence by any entities related to the
Manager and without taking into account any consideration to any affiliate of the Manager; (b) represent the business judgment of the Manager uninfluenced by considerations other than the best interests of the Fund; and (c) are made in compliance with the Manager s policies and procedures. Transactions made by the Manager under the standing instructions are subsequently reviewed by the BoG on a quarterly basis to monitor compliance. The Fund relied on the BoG s standing instructions regarding Related Party Transactions during this reporting period.
FINANCIAL HIGHLIGHTS The following tables show selected key financial information about the Fund and are intended to help you understand the Fund s financial performance for the past five years, as applicable. The shown below are based on net asset values. A Shares Commencement of operations October 22, 7 Year ended Year ended Year ended Year ended Year ended March 31, 13 March 31, 12 March 31, 11 March 31, March 31, 9 $ $ $ $ $ 6.38 6.61 6.41 5.46 8.82.17.21.17.18.27 (.19) (.19) (.19) (.18) (.21) (.4) (.2).29 (.32) (1.69).52 (.21) (.4) 1.24 (1.88).46 (.21).23.92 (3.51) (.1) (.1) 6.93 6.38 6.61 6.41 5.46 1,453 1,726 2,28 2,292 1,79 9 27 6 357 327 22.41 33.61 32.17 82.43 68.79.8.12.15.19.36 6.93 6.38 6.62 6.42 5.47 2.72 2.67 2.72 2.72 2.89.32.31.26.14.14 3.4 2.98 2.98 2.86 3.3 11.88 11.42 9.71 5. 5.
E Shares Commencement of operations September 12, 8 Period from Year ended Year ended Year ended Year ended Inception to March 31, 13 March 31, 12 March 31, 11 March 31, March 31, 9 $ $ $ $ $ 8.45 8.7 8.37 7.9..23.27.22.22.13 (.19) (.19) (.19) (.18) (.9) (.3) (.3).38 (.12) (2.55).91 (.24) (.4) 1.12 1.36.92 (.19).37 1.4 (1.15) 9.25 8.45 8.7 8.37 7.9 11,818 8,9 8,278 5,979 2,277 1,277 1,57 951 713 321 22.41 33.61 32.17 82.43 68.79.8.12.15.19.36 9.25 8.46 8.71 8.38 7. 2.12 2.7 2.12 2.12 2..22.21.18.11.11 2.34 2.28 2. 2.23 2.41.63 9.74 8. 5. 5.
F Shares Commencement of operations May 22, 8 Period from Year ended Year ended Year ended Year ended Inception to March 31, 13 March 31, 12 March 31, 11 March 31, March 31, 9 $ $ $ $ $ 7.32 7.51 7.19 6.7..18.27.22.26.19 (.14) (.14) (.13) (.12) (.11) (.) (.3).25 (1.79) (2.36) 1.56 (.23) (.78) 3.25 (1.67) 1.5 (.13) (.44) 1.6 (3.95) 8.4 7.32 7.51 7.19 6.7 2 16 99 328 1 2 14 54 22.41 33.61 32.17 82.43 68.79.8.12.15.19.36 8.5 7.32 7.51 7. 6.8 1.72 1.67 1.72 1.72 1.9.22.17.15.9.9 1.94 1.84 1.87 1.81 1.99 12.9 13..5 5. 5.
I Shares Commencement of operations September 8, 8 Period from Year ended Year ended Year ended Year ended Inception to March 31, 13 March 31, 12 March 31, 11 March 31, March 31, 9 $ $ $ $ 9. 9.25 8.69 7...25.29.23.24.13 (.1) (.3) (.3).43 (.27) (2.8) 1.4 (.22).4 1.35 1.46 1.26.4.7 1.32 (1.22). 9. 9.25 8.69 7. 29,2 21,969 17,55 8,433 3,928 2,837 2,387 1,842 969 545 22.41 33.61 32.17 82.43 68.79.8.12.15.19.36.31 9. 9.26 8.71 7.21.18.18
W Shares Commencement of operations October 22, 7 Year ended Year ended Year ended Year ended Year ended March 31, 13 March 31, 12 March 31, 11 March 31, March 31, 9 $ $ $ $ $ 7.17 7.23 6.82 5.66 8.91.19.23.19..28 (.2) (.1) (.2) (.2) (.3) (.4) (.2).31 (.41) (1.92).64 (.26) (.12) 1.44 (1.7).77 (.6).36 1.21 (3.37) 8.1 7.17 7.23 6.82 5.66 147,48 152,76 171,63 199,944 191,887 18,336 21,273 23,77 29,281 33,843 22.41 33.61 32.17 82.43 68.79.8.12.15.19.36 8.2 7.18 7.24 6.83 5.67.22.17.22.22..2.2.2.1.1.24.19.24.23.41 11.48 11. 9.5 5. 5.
ET8 Shares Commencement of operations June 22, 11 Period from Year ended Inception to March 31, 13 March 31, 12 $ $.7..26.11 (.23) (.9) (.5) 1.3.33 1.1.35 (.2) (.76) (.32) (.76) (.34).17.7 15 9 1 1 22.41 33.61.8.12.18.8 2.12 2.7..21 2.42 2.28.65.
IT8 Shares Commencement of operations December 22, 11 Period from Year ended Inception to March 31, 13 March 31, 12 $ $.74..21.23 (.19) (.18) 1.66.36 1.68.41 (.81) (.) (.81) (.) 11.12.74 11 6 1 1 22.41 33.61.8.12 11.13.75
The Fund s Net Assets per Share ($) (1) (2) WT8 Shares Commencement of operations June 22, 11 Period from Year ended Inception to March 31, 13 March 31, 12 $ $ 9.45..26. (.2) (.1).24 (.9) 2.38.25 2.86.35 (.2) (.71) (.58) (.71) (.6) 9.76 9.45,764 154 1,2 16 22.41 33.61.8.12 9.77 9.46.22.17.3.3.25. 12.55 12.53 (1) This information is derived from the Fund s audited annual financial statements. The net assets per share presented in the financial statements differs from the net asset value calculated for Fund pricing purposes. An explanation of these differences can be found in the notes to the financial statements or in footnote (7) below. (2) Net assets per share and dividends per share are based on the actual number of shares outstanding for the relevant class at the relevant time. The increase (decrease) from operations per share is based on the weighted average number of shares outstanding for the relevant class over the fiscal year. (3) Dividends were paid in cash or automatically reinvested in additional shares of the Fund. (4) Management expense ratio is calculated based on expenses charged to the Fund (excluding commissions and other portfolio transaction costs) and is expressed as an annualized percentage of daily average net asset value for the period. As of July 1,, 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 shareholder residency and can be different from 13%. For any particular year, the rate shown will be prorated based on the different rates in effect during that year. For the year ended March 31, 11, the rate applied is 5% for the period April 1, to June, and the Fund s Effective HST rate for the period from July 1, to March 31, 11. The rate shown for the year ended March 31, 11 is the time weighted average of these rates. Beginning April 1, 11, the HST rate is based on the residency of the shareholder. (5) The Fund s portfolio turnover rate indicates how actively the Fund s portfolio advisor manages its portfolio investments. A portfolio turnover rate of % is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the fiscal year. The higher a Fund s portfolio turnover rate in a year, the greater the trading costs payable by the Fund in the year, and the greater the chance of an investor receiving taxable capital gains in the year. There is not necessarily a relationship between a higher turnover rate and the performance of a Fund. Portfolio turnover rate is calculated by dividing the lesser of the cost of purchases and the proceeds of sales of portfolio securities for the year, and excluding cash and short term investments maturing in less than one year, and before assets acquired from a merger, if applicable, by the average of the market value of investments during the year. (6) The trading expense ratio represents total commissions and other portfolio transaction costs disclosed in the Statements of Operations expressed as an annualized percentage of daily average net asset value of the Fund during the year. (7) Section 14.2 of National Instrument 81-6 requires the net assets of an investment fund to be calculated using the fair value of the Fund s assets and liabilities. Canadian GAAP requires a different valuation method for calculating net assets for financial statement purposes. For the purpose of processing shareholder transactions, net assets are calculated based on the closing market price (referred to as Net Asset Value ), while for financial statement purposes net assets are calculated based on bid/ask price (referred to as Net Assets ).
PAST PERFORMANCE This section describes how the Fund has performed in the past. Past returns do not indicate how the Fund will perform in the future. The information shown assumes that distributions made by the Fund in the years shown were reinvested in additional shares of the relevant classes of the Fund. In addition, the information does not take into account sales, redemption, distribution or other optional charges that would have reduced returns or performance. Year-by-Year Returns The following charts show the Fund s annual performance for each of the years shown and illustrate how the Fund s performance has changed from year to year. In percentage terms, the charts show how much an investment made on the first day of each financial year would have grown or decreased by the last day of each financial year, except where noted. - - - - 9.5* Mar. 12 12. Mar. 13 - - - - *This figure is for the period from December 22, 11 to March 31, 12. **This figure is for the period from June 22, 11 to March 31, 12. Annual Compound Returns.7** Mar. 12 11.7 Mar. 13 IT8 Shares WT8 Shares The following table shows the Fund s annual compound returns for each period indicated, compared to the MSCI EAFE Total Return Index. - - - - -11.6* Mar. 8-38.1 Mar. 9 17.4 Mar. 3.1 Mar. 11-3.4 Mar. 12 8.6 Mar. 13 - - - - -29.** Mar. 9 18. Mar. 3.9 Mar. 11-2.6 Mar. 12 9.3 Mar. 13 The MSCI EAFE Total Return Index (Europe, Australasia and Far East) is a free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding U.S. and Canada. The MSCI EAFE Index consists of the following 22 developed market country indices: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Israel, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland and the United Kingdom. *This figure is for the period from October 22, 7 to March 31, 8. **This figure is for the period from September 12, 8 to March 31, 9. A Shares E Shares A discussion of the performance of the Fund as compared to the benchmark is found in the Results of Operations section of this report. - - - - - - - - -.7* Mar. 9-39.2* 18.4 Mar. *This figure is for the period from May 22, 8 to March 31, 9. **This figure is for the period from September 8, 8 to March 31, 9. -36.5 4.3 Mar. 11.5-2.3 Mar. 12 6. Mar. 13 - - - - Mar. 9 Mar. Mar. 11 Mar. 12 Mar. 13 F Shares I Shares One Three Five Ten Since Year Years Years Years Inception A Shares (%) 8.6 2.7 (4.7) n/a (6.5) MSCI EAFE Total Return Index (%) 13.9 5.7 (.6) n/a (1.8) E Shares (%) 9.3 3.4 n/a n/a (1.6) MSCI EAFE Total Return Index (%) 13.9 5.7 n/a n/a 4.3 F Shares (%). 3.9 n/a n/a (4.3) MSCI EAFE Total Return Index (%) 13.9 5.7 n/a n/a (1.3) I Shares (%) 12.1 5.9 n/a n/a.7 MSCI EAFE Total Return Index (%) 13.9 5.7 n/a n/a 4.3 W Shares (%) 11.7 5.6 (2.1) n/a (3.9) MSCI EAFE Total Return Index (%) 13.9 5.7 (.6) n/a (1.8) ET8 Shares (%) 9.3 n/a n/a n/a 7.7 MSCI EAFE Total Return Index (%) 13.9 n/a n/a n/a 5.5 IT8 Shares (%) 12. n/a n/a n/a 12.2 MSCI EAFE Total Return Index (%) 13.9 n/a n/a n/a 5.5 WT8 Shares (%) 11.7 n/a n/a n/a 6.9 MSCI EAFE Total Return Index (%) 13.9 n/a n/a n/a 5.5 Mar. 8 Mar. 9 Mar. Mar. 11 Mar. 12 Mar. 13. -.6 11.7 - - - - -27.9** 4.4**.8 9.3 6.3 Mar. 12 -.4 12.1 Mar. 13 *This figure is for the period from October 22, 7 to March 31, 8. **This figure is for the period from June 22, 11 to March 31, 12. W Shares ET8 Shares
Summary of Investment Portfolio as at March 31, 13 Portfolio Breakdown Percentage of Category Net Asset Value (%) Portfolio Breakdown (cont d) Percentage of Category Net Asset Value (%) Top 25 Holdings Percentage of Security Name Net Asset Value (%) Country allocation Japan... 22.5 U.K... 17.8 Germany... 14.2 Switzerland... 14. France... 6.6 Cash & Equivalents... 3.3 Netherlands Antilles... 2.5 Sweden... 2.5 Ireland... 2.3 Singapore... 2.1 Netherlands... 2. Australia... 1.8 U.S.A... 1.7 South Africa... 1.7 Qatar... 1.3 Hong Kong... 1. Norway....9 Malaysia....9 Mexico....5 Other Net Assets (Liabilities)....4 Sector allocation Financials... 21.4 Consumer Staples... 19.9 Industrials... 13.4 Health Care... 11.8 Energy....6 Materials... 6.3 Consumer Discretionary... 4.3 Telecommunication Services... 3.9 Information Technology... 3.5 Cash & Equivalents... 3.3 Utilities... 1.2 Other Net Assets (Liabilities)....4 Cash & Equivalents... 3.3 Roche Holding AG... 3.2 Novartis AG, Registered Shares... 2.9 Nestle S.A., Registered Shares... 2.8 Bank of Yokohama Ltd... 2.8 Willis Group Holdings PLC... 2.7 Deutsche Boerse AG... 2.6 Noble Corp... 2.6 GlaxoSmithKline PLC... 2.5 Schlumberger Ltd... 2.5 Telefonaktiebolaget LM Ericsson, Class B... 2.5 Suzuki Motor Corp... 2.4 Mitsubishi Corp... 2.4 BP PLC, ADR... 2.4 Sumitomo Mitsui Trust Holdings Inc... 2.3 Covidien PLC... 2.3 Siemens AG, Registered Shares... 2.3 Diageo PLC... 2.3 Vodafone Group PLC, ADR... 2.2 Danone S.A... 2.2 Heineken N.V... 2. Henkel KGaA, Preferred, Non-Voting Shares... 2. Inpex Corp... 2. Incitec Pivot Ltd... 1.8 Standard Chartered PLC... 1.8 Total Net Asset Value (in $ s) $,359 The summary of investment portfolio may change due to ongoing portfolio transactions of the Fund and updates are available on a quarterly basis. A NOTE ON FORWARD-LOOKING STATEMENTS This report may contain forward-looking statements about the Fund, its future performance, strategies or prospects, and possible future Fund action. The words may, could, should, would, suspect, outlook, believe, plan, anticipate, estimate, expect, intend, forecast, objective, and similar expressions are intended to identify forward-looking statements. Forward-looking statements are not guarantees of future performance. Forward-looking statements involve inherent risks and uncertainties, both about the Fund and general economic factors, so it is possible that predictions, forecasts, projections and other forward-looking statements will not be achieved. We caution you not to place undue reliance on these statements as a number of important factors could cause actual events or results to differ materially from those expressed or implied in any forward-looking statement made by the Fund. These factors include, but are not limited to, general economic, political and market factors in Canada, the United States and internationally, interest and foreign exchanges rates, global equity and capital markets, business competition, technological changes, changes in laws and regulations, judicial or regulatory judgments, legal proceedings and catastrophic events. The above list of important factors that may affect future results is not exhaustive. Before making any investment decisions, we encourage you to consider these and other factors carefully. All opinions contained in forward-looking statements are subject to change without notice and are provided in good faith but without legal responsibility.