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 1-8-563-5181, by writing to us at CI Investments Inc., 2 Queen Street East, Twentieth Floor, Toronto, ON M5C 3G7 or by visiting our website at www.ci.com 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 Synergy Canadian Corporate Class (the Fund ) is longterm capital growth by investing primarily in equity and equity-related securities of Canadian companies that represent the growth style. The Fund may also invest in foreign securities. RISK The risks associated with investing in this Fund remain as discussed in the prospectus. The Fund is suitable for investors who want a core Canadian equity fund, are investing for the medium and/or long term and can tolerate medium risk. RESULTS OF OPERATIONS The net asset value of the Fund decreased by $39.9 million to $1,143.8 million from March 31, 212 to March 31, 213. The Fund had net redemptions of $17.6 million during the period. The portfolio s performance increased assets by $76.8 million. The Fund paid distributions totalling $9.1 million. The oneyear return for Class A shares was 7.%, Class AT8 shares was 6.8%, Class E shares was 6.8%, Class F shares was 8.1%, Class I shares was 9.6%, Insight shares was 8.2%, Class IT8 shares was 9.6%, Class O shares was 9.5%, Class Y shares was 8.2% and Class Z shares was 7.%, as compared to the return of its benchmark of 6.1%. The benchmark is the Total Return Index. Momentum managers invest in companies that are changing for the better and whose underlying fundamentals are improving more rapidly than the overall stock market. They typically have a shorter investment horizon than other types of fund managers. They seek to be rewarded by significant upward movements in stock prices that can occur over shorter time periods. Since change is the catalyst, this style tends to generate relatively high portfolio turnover. A quantitative model assists in the search for stocks that exhibit characteristics such as earnings acceleration, upward changes in analysts earnings forecasts for a company, and positive earnings surprises. Once a list of potential investments exhibiting these criteria is identified, the major fundamental aspects of each company are analyzed, including the quality of the company s earnings streams and how it s positioned to benefit from the current economic environment. A reasonably well diversified portfolio is then constructed. The portfolio is continually monitored with the objective of quickly identifying companies with deteriorating fundamentals so they can be sold before their relative performance declines significantly. The Fund may use derivatives, but only as permitted by securities regulations. It may also engage in selling securities short. In order to earn additional income, the Fund may enter into securities lending transactions, repurchase transactions and reverse repurchase transactions, to the extent permitted by securities regulations. This Fund is designed for investors who want to defer tax on capital gains outside a registered plan. History may one day judge Ben Bernanke s administration of largely untested academic theory as reckless ; however, if the outcomes were tallied today, it would be hard to argue with the results. Last year, we suggested that investors were in a sweet spot for the economy and equity markets. Today, we find ourselves in a similar frame of mind extolling the virtues of a Goldilocks phase, where moderate economic growth and low inflation have created an ideal environment for markets. Our sanguine view begins with the U.S. unemployment rate, which has fallen to a new cycle low of 7.7%. Consumer spending in the United States has remained positive, even as incomes dropped because of the lapsed payroll-tax holiday as of January 1, 213. The U.S. housing recovery has become well entrenched with affordability at its best level in decades. Inventory of unsold existing houses has fallen and prices have stabilized. Meanwhile, signs off life emanate from the global economy, with the Institute for Supply Management s Purchasing Managers Index (PMI) recently reported at its highest level in half a year. The JPMorgan Global PMI has moved back above the all-important threshold of 5. The news was similarly positive from equity markets over the past 12 months. The MSCI World Index (USD) returned 12.53%, the S&P 5 Index (USD) gained 13.96%, and the TOPIX Index, after decades of Japanese slumber, began a momentous reawakening at the end of 212, posting a return of 8.33% (USD). Capping all this good news was the Dow Jones Industrial Average surpassing its October 27 high, and ending the last 12 months up 13.37% (USD). During the period, the Fund outperformed the benchmark. We added value through allocation to the materials, consumer discretionary, and information technology sectors and through our stock selection in companies such as Barrick Gold Corp., WestJet Airlines Ltd., and Gibson Energy Inc. Factors that detracted from returns included our allocation to the financials, energy, and telecommunication services sectors, and our investments in BCE Inc., Canadian Pacific Railway Ltd., and Enbridge Inc. CIG - 613
RECENT DEVELOPMENTS In Canada, the rotation from resource and defensive names to growth companies should continue. Our portfolios continue to be overweight the industrials, consumer discretionary, and information technology sectors. We are particularly focused on companies with growth initiatives overseas, with capital-expenditure driven technology, and that benefit from the resurgence in U.S. manufacturing. Improving economic trends are a positive factor for equity markets for now but these will likely become a concern in the future as the recovery starts to really take hold. We will look to use any near-term pullbacks to add to risk assets in our portfolios. As these conditions could turn into something more aggressive and unpleasant, we do expect some ups and downs in the markets over the next year or two until central bank involvement is lessened. We are also concerned that capital markets could get very excited by reflationary policies and will keep a watchful eye on inflation rates. 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, 211. However, the AcSB has allowed most investment funds to defer adoption of IFRS until fiscal years beginning on or after January 1, 214. Accordingly, the Fund will adopt IFRS for its fiscal period beginning April 1, 214, and will issue its initial financial statements in accordance with IFRS, including comparative information, for the interim period ending September 3, 214. 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, provides management services required in the day-to-day operations of the Fund. The Manager bears all of the operating expenses of the Fund (other than taxes, borrowing costs and new governmental fees) in return for a fixed administration fee. Management fee and fixed administration fee rates as at March 31, 213, for each of the classes are shown below: Annual management fee rate (%) Annual fixed administration fee rate (%) A Shares 2..2 E Shares 1.95.15 F Shares 1..2 I Shares Insight Shares O Shares Paid directly by investor.95.2 Paid directly by investor -.15 Annual management fee rate (%) Annual fixed administration fee rate (%) Y Shares 1..2 Z Shares 2..2 AT8 Shares 2..2 IT8 Shares Paid directly by investor The Manager received $1.8 million in management fees and $.2 million in fixed administration fess for the period. Management Fees Approximately 3% of total management fees were used to pay for sales and trailing commissions. The remaining 7% of management fees were used for investment management and other general administration. Broker commissions During the period, the Fund paid $153,644 in brokerage commissions to The Bank of Nova Scotia or its subsidiaries. The Bank of Nova Scotia has a significant interest in CI Financial Corp., the parent company of CI Investments Inc. Independent Review Committee The Fund received standing instructions from the Board of Governors ( BoG ) in its capacity as the Independent Review Committee ( IRC ) with respect to the following Related Party Transactions: 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 81-12 ( 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 December 29, 1997 Year ended Year ended Year ended Year ended Year ended March 31, 213 March 31, 212 March 31, 211 March 31, 21 March 31, 29 $ $ $ $ $ 13.93 15.9 13.29 9.92 14.78.35.32.28.26.32 (.33) (.34) (.33) (.28) (.28).42.8 1.39.26 (2.61).48 (1.19).46 3.32 (2.75).92 (1.13) 1.8 3.56 (5.32) (.11) (.11) (.1) (.18) - (.11) (.11) (.1) (.18) - 14.77 13.93 15.9 13.29 9.92 825,544 835,38 1,36,42 1,32,541 811,363 55,836 59,937 68,583 77,559 81,596 13.32 115.58 113.89 125.23 114.16.33.32.3.3.3 14.79 13.94 15.11 13.31 9.94 2.2 2.21 2.21 2.21 2.21.23.23.2.11.11 2.43 2.44 2.41 2.32 2.32 1.5 1.37 9.5 5. 5.
E Shares Commencement of operations October 4, 211 Period from Year ended Inception to March 31, 213 March 31, 212 $ $ 11.38 1..31.9 (.27) (.15) 1.9 (.1).84 1.56 1.97 1.49 (.9) (.9) (.9) (.9) 12.6 11.38 134-11 - 13.32 115.58.33.32 12.7 11.39 2.11 2.11.27.21 2.38 2.32 1.65 1. 4
F Shares Commencement of operations November 13, 2 Year ended Year ended Year ended Year ended Year ended March 31, 213 March 31, 212 March 31, 211 March 31, 21 March 31, 29 $ $ $ $ $ 8.46 9.7 7.9 5.83 8.6.22.2.17.16.19 (.11) (.11) (.11) (.9) (.9).26.4.86.17 (1.29).31 (.7).34 1.96 (1.53).68 (.57) 1.26 2.2 (2.72) (.7) (.7) (.6) (.11) - (.7) (.7) (.6) (.11) - 9.7 8.46 9.7 7.9 5.83 34,291 32,31 37,685 3,758 21,995 3,776 3,815 4,151 3,887 3,76 13.32 115.58 113.89 125.23 114.16.33.32.3.3.3 9.8 8.47 9.8 7.91 5.85 1.2 1.21 1.21 1.21 1.21.14.13.12.6.6 1.34 1.34 1.33 1.27 1.27 1.76 11.2 9.52 5. 5.
I Shares Commencement of operations August 22, 22 Year ended Year ended Year ended Year ended Year ended March 31, 213 March 31, 212 March 31, 211 March 31, 21 March 31, 29 $ $ $ $ $ 12.65 13.38 11.51 8.39 12.21.32.29.25.22.27.36.6 1.25.35 (.56).41 (.97).56 2.45 (1.83) 1.9 (.62) 2.6 3.2 (2.12) (.11) (.1) (.9) (.16) - (.11) (.1) (.9) (.16) - 13.75 12.65 13.38 11.51 8.39 173,522 188,552 217,357 161,188 79,55 12,612 14,894 16,229 13,986 9,458 13.32 115.58 113.89 125.23 114.16.33.32.3.3.3 13.76 12.66 13.39 11.52 8.41 -.1.1.1.1 -.1.1.1.1
Insight Shares Commencement of operations August 22, 22 Year ended Year ended Year ended Year ended Year ended March 31, 213 March 31, 212 March 31, 211 March 31, 21 March 31, 29 $ $ $ $ $ 16. 17.14 14.93 11.1 16.23.41.37.32.3.36 (.2) (.2) (.19) (.16) (.17).44.8 1.54.21 (2.35).47 (1.52).52 3.92 (2.93) 1.12 (1.27) 2.19 4.27 (5.9) (.13) (.13) (.11) (.21) - (.13) (.13) (.11) (.21) - 17.17 16. 17.14 14.93 11.1 2,42 2,567 3,835 4,384 4,311 119 16 223 293 391 13.32 115.58 113.89 125.23 114.16.33.32.3.3.3 17.18 16.1 17.16 14.95 11.4 1.15 1.16 1.16 1.16 1.16.13.13.11.6.6 1.28 1.29 1.27 1.22 1.22 1.8 11.31 9.63 5. 5. 7
O Shares Commencement of operations October 4, 211 Period from Year ended Inception to March 31, 213 March 31, 212 $ $ 11.54 1..3.14 (.2) (.1).42.19.65 1.12 1.35 1.44 (.1) (.9) (.1) (.9) 12.52 11.54 413 252 33 22 13.32 115.58.33.32 12.54 11.55.15.16.2.2.17.18 1.65 1. 8
Y Shares Commencement of operations August 14, 29 Period from Year ended Year ended Year ended Inception to March 31,213 March 31, 212 March 31, 211 March 31, 21 $ $ $ $ 11.99 12.85 11.2 1..3.28.24.13 (.15) (.16) (.15) (.9).3.7 1.13.52.32 (1.2).33.79.77 (.83) 1.55 1.35 (.1) (.1) (.8) (.15) (.1) (.1) (.8) (.15) 12.86 11.99 12.85 11.2 1,71 2,231 2,718 3,613 133 186 211 322 13.32 115.58 113.89 125.23.33.32.3.3 12.88 12. 12.87 11.21 1.2 1.21 1.21 1.23.11.11.1.6 1.31 1.32 1.31 1.29 8.9 9.33 8.3 5.
Z Shares Commencement of operations August 14, 29 Period from Year ended Year ended Year ended Inception to March 31, 213 March 31, 212 March 31, 211 March 31, 21 $ $ $ $ 11.65 12.63 11.12 1..29.27.24.13 (.28) (.28) (.27) (.16).33.7 1.14.51.35 (1.5).37.79.69 (.99) 1.48 1.27 (.1) (.1) (.8) (.15) (.1) (.1) (.8) (.15) 12.36 11.65 12.63 11.12 16,133 122,451 161,21 175,512 8,577 1,499 12,752 15,755 13.32 115.58 113.89 125.23.33.32.3.3 12.37 11.66 12.64 11.14 2.2 2.21 2.21 2.24.23.22.19.11 2.43 2.43 2.4 2.35 9.83 1.4 8.72 5.
AT8 Shares Commencement of operations February 17, 212 Period from Year ended Inception to March 31, 213 March 31, 212 $ $ 9.92 1..25.3 (.23) -.47.7 1.22.3 1.71.13 (.8) - (.79) (.13) (.87) (.13) 9.66 9.92 12-1 - 13.32 115.58.33.32 9.67 9.93 2.2 2.21.29.22 2.49 2.43 1.75 1.
The Fund s Net Assets per Share ($) (1) (2) IT8 Shares Commencement of operations February 17, 212 Period from Year ended Inception to March 31, 213 March 31, 212 $ $ 9.92 1..25.3.48.7 1.24.3 1.97.13 (.8) - (.79) (.13) (.87) (.13) 9.92 9.92 12-1 - 13.32 115.58.33.32 9.93 9.93 -.1 -.1 (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, 21, 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, 211, the rate applied is 5% for the period April 1, 21 to June 3, 21 and the Fund's Effective HST rate for the period from July 1, 21 to March 31, 211. The rate shown for the year ended March 31, 211 is the time weighted average of these rates. Beginning April 1, 211 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 1% 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 81-16 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. 6 4 2-4 13.7* 15.6-5.9 8.2 6 4 2-4 13.* 14.3-6.9 7. Mar. 21 Mar. 211 Mar. 212 Mar. 213 Mar. 21 Mar. 211 Mar. 212 Mar. 213 *This figure is for the period from Auguest 14, 29 to March 31, 21. 6 6 4 4 Y Shares Z Shares 6 4 2 32. 17.8 3.7 1.7-2.7-32.9 35.9 14.3-6.9 7. 6 4 2 14.9* 6.8 2-4.6* Mar. 212 6.8 Mar. 213 2-4.6* Mar. 212 9.6 Mar. 213-4 -4 *This figure is for for the period from February 17, 212 to March 31, 212. AT8 Shares IT8 Shares Dec. 23 Dec. 24 Mar. 26 Mar. 27 Mar. 28 Mar. 29 Mar. 21 Mar. 211 Mar. 212 Mar. 213 Mar. 212 Mar. 213 This figure is for the period from January 1, 25 to March 31, 26. *This figure is for the period from October 4, 211 to March 31, 212. A Shares E Shares Annual Compound Returns The following table shows the Fund s annual compound returns for each period indicated, compared to the Total Return Index. 6 4 2-4 33.6 19.1 32.4 12. 37.2 15.6 Dec. 23 Dec. 24 Mar. 26 Mar. 27 Mar. 28-1.7 Mar. 29-32.1 Mar. 21 Mar. 211 Mar. 212-5.9 Mar. 213 8.1 This figure is for the period from January 1, 25 to March 31, 26. F Shares 6 4 2-4 15.9* 32.7 12. -1.6-32.1 37.4 15.6 Dec. 24 Mar. 26 Mar. 27 Mar. 28 Mar. 29 Mar. 21 Mar. 211 Mar. 212 Mar. 213 *This figure is for the period from July 23, 24 to December 31, 24. **This figure is for the period from October 4, 211 to March 31, 212 This figure is for the period from January 1, 25 to March 31, 26. -5.9 8.2 6 4 2-4 6 4 2-4 4.6 2.9 Dec. 23 Dec. 24 Mar. 26 Mar. 27 Mar. 28 -.4 Mar. 29-31.3 Mar. 21 Mar. 211 Mar. 212-4.6 Mar. 213 9.6 16.5** 9.5 Mar. 212 Mar. 213 34.6 13.4 39. 17. I Shares Insight units O Shares The Total Return Index is a float adjusted market capitalization weighted index which is the principal broad measure of the Canadian equity market. It includes common stocks and income trust units of companies incorporated in Canada which are listed on the Toronto Stock Exchange. A discussion of the performance of the Fund as compared to the benchmark is found in the Results of Operations section of this report. One Three Five Ten Since Year Years Years Years Inception A Shares (%) 7. 4.4.7 9.1 n/a Total Return Index (%) 6.1 4.9 2. 1. n/a E Shares (%) 6.8 n/a n/a n/a 14.8 Total Return Index (%) 6.1 n/a n/a n/a 6. F Shares (%) 8.1 5.5 1.8 1.3 n/a Total Return Index (%) 6.1 4.9 2. 1. n/a I Shares (%) 9.6 7. 3.2 11.7 n/a Total Return Index (%) 6.1 4.9 2. 1. n/a Insight Shares (%) 8.2 5.6 1.9 n/a 7.4 Total Return Index (%) 6.1 4.9 2. n/a 7.6
One Three Five Ten Since Year Years Years Years Inception O Shares (%) 9.5 n/a n/a n/a 17.7 Total Return Index (%) 6.1 n/a n/a n/a 6. Y Shares (%) 8.2 5.6 n/a n/a 8.4 Total Return Index (%) 6.1 4.9 n/a n/a 7.6 Z Shares (%) 7. 4.4 n/a n/a 7.2 Total Return Index (%) 6.1 4.9 n/a n/a 7.6 AT8 Shares (%) 6.8 n/a n/a n/a 4.1 Total Return Index (%) 6.1 n/a n/a n/a.5 IT8 Shares (%) 9.6 n/a n/a n/a 5.7 Total Return Index (%) 6.1 n/a n/a n/a.5 14
Summary of Investment Portfolio as at March 31, 213 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 Canada.......................................... 55.9 U.S.A............................................ 22.1 Japan........................................... 4.3 Cash & Equivalents................................ 3.4 U.K.............................................. 2.7 France........................................... 1.7 Switzerland........................................9 Other Net Assets (Liabilities)..........................8 Germany..........................................8 Bermuda..........................................8 South Korea.......................................8 Hong Kong........................................6 Sweden...........................................5 Thailand..........................................5 China.............................................5 Netherlands.......................................4 Norway...........................................4 Australia..........................................3 Malaysia..........................................3 Italy..............................................3 Russia............................................2 Spain.............................................2 Brazil.............................................2 Singapore.........................................2 Taiwan...........................................2 Israel.............................................1 Cayman Islands....................................1 Turkey............................................1 Ireland............................................1 Foreign Currency Forward Contracts....................1 Belgium...........................................1 Denmark..........................................1 British Virgin Islands................................1 South Africa.......................................1 Jersey Island......................................1 Sector allocation Financials........................................ 26.2 Energy........................................... 16.6 Materials........................................ 11.4 Consumer Discretionary............................. 11. Industrials........................................ 9.8 Information Technology............................. 7.1 Health Care...................................... 5.2 Consumer Staples................................. 4.3 Cash & Equivalents................................ 3.4 Telecommunication Services......................... 3.1 Utilities.......................................... 1. Other Net Assets (Liabilities)..........................8 Foreign Currency Forward Contracts....................1 Royal Bank of Canada.............................. 3.6 The Bank of Nova Scotia........................... 3.4 Cash & Equivalents................................ 3.4 Toronto-Dominion Bank............................. 3.1 Canadian National Railway Co........................ 2.3 Canadian Imperial Bank of Commerce................. 1.5 Manulife Financial Corp............................. 1.4 Magna International Inc., Class A..................... 1.4 TransCanada Corp.................................. 1.3 IGM Financial Inc.................................. 1.3 Goldcorp Inc...................................... 1.2 Gibson Energy Inc.................................. 1.2 Cenovus Energy Inc................................. 1.2 Rogers Communications Inc., Class B.................. 1.2 Intact Financial Corp................................ 1.1 Suncor Energy Inc.................................. 1.1 TELUS Corp....................................... 1.1 CGI Group Inc..................................... 1.1 WestJet Airlines Ltd................................ 1. Canadian Tire Corp., Ltd., Class A, Non-Voting Shares.... 1. Valeant Pharmaceuticals International Inc............... 1. ARC Resources Ltd..................................9 Keyera Corp........................................9 Finning International Inc..............................9 Silver Wheaton Corp.................................8 Total Net Asset Value (in $ s) $1,143,813 The summary of investment portfolio may change due to ongoing portfolio transactions of the Fund and updates will be available on a quarterly basis. A NOTE ON FORWARD-LOOKING STATEMENTS This report may contain forward-looking statements about the Fund, its future performance, strategies or prospects, and possible future Fund action. The words may, could, should, would, suspect, outlook, believe, plan, anticipate, estimate, expect, intend, forecast, objective, and similar expressions are intended to identify forward-looking statements. Forward-looking statements are not guarantees of future performance. Forward-looking statements involve inherent risks and uncertainties, both about the Fund and general economic factors, so it is possible that predictions, forecasts, projections and other forward-looking statements will not be achieved. We caution you not to place undue reliance on these statements as a number of important factors could cause actual events or results to differ materially from those expressed or implied in any forward-looking statement made by the Fund. These factors include, but are not limited to, general economic, political and market factors in Canada, the United States and internationally, interest and foreign exchanges rates, global equity and capital markets, business competition, technological changes, changes in laws and regulations, judicial or regulatory judgments, legal proceedings and catastrophic events. The above list of important factors that may affect future results is not exhaustive. Before making any investment decisions, we encourage you to consider these and other factors carefully. All opinions contained in forward-looking statements are subject to change without notice and are provided in good faith but without legal responsibility.