Client Guide
It s easy to get started You and your advisor create an investor profile based on your discussions and responses to the Portfolio Select Series questionnaire. Based on the profile, you and your advisor choose an optimized strategic asset allocation portfolio tailored to your risk tolerance and return objectives. Portfolio Select Series offers you a complete investment program by combining key portfolio management features such as the questionnaire, diversified investment pools, automatic rebalancing and enhanced quarterly statements into one simple package. Portfolio Select Series Best Fund of Funds program Morningstar Awards 2013 Winner
Portfolio Select Series is carefully crafted Managed investment solutions can provide a straightforward and very effective means to look after your assets. But not all managed solutions are alike. With Portfolio Select Series, you can have confidence you are benefiting from a sophisticated, high-quality investment program. Portfolio Select Series provides you with two levels of expertise. CI Investment Consulting combines its portfolio construction expertise with comprehensive research and recommendations from State Street Global Advisors, a world leader in asset allocation, to create the program s nine strategically engineered portfolios. Each portfolio is a diversified mix of fixed-income and equity investments, designed to suit individual needs. Portfolio Select Series also offers you the expertise of award-winning portfolio managers with proven track records. These managers, through their specialized mandates, have the discretion and opportunities to add value using day-to-day tactical actions through security selection and sector allocation. Portfolio Select Series is based on CI Investments tax-efficient Corporate Class structure, making it especially beneficial for non-registered accounts. Working with your advisor, you have the flexibility to easily customize your portfolio to meet your needs and your personal risk profile.
Adding value with 4 key advantages 1. Each of the nine diversified portfolios is strategically engineered to maximize performance for a given level of risk. The portfolios invest in a mix of four exclusive multimanager, multi-style investment pools income, Canadian equity, U.S. equity, and international equity. The portfolios: Are constructed to suit individual needs for capital preservation, income generation and long-term growth. Blend the diversification benefits of strategic asset allocation with tactical portfolio management the managers of the institutional-style investment pools add value in the daily management of the portfolios, through security selection and sector allocation, based on their areas of expertise. Are monitored and rebalanced by CI Investment Consulting when necessary, so your portfolio stays on track. 2. CI Investment Consulting s portfolio construction skills are combined with the asset allocation expertise of State Street Global Advisors. CI Investment Consulting uses ongoing asset mix research and recommendations from State Street Global Advisors and its Investment Solutions Group to help craft Portfolio Select Series efficient strategic asset allocation portfolios. With US$2.2 trillion* in assets under management, State Street Global Advisors is one of the largest investment management companies in the world. Working with research from State Street Global Advisors, CI Investment Consulting reviews assumptions of the asset mixes, including volatility and expected returns, and makes adjustments as needed to ensure the portfolios continue to capture maximum return for a given level of risk. The CI Investment Consulting team is responsible for ongoing due diligence and overall program maintenance. *As at December 31, 2015. Portfolio Optimization Return 11.0 A Current Portfolio B Optimized Portfolio C Optimized Portfolio 8.5 6.0 B Same Return Lower Volatility C A Higher Return Same Volatility Non-Efficient Portfolio 7.0 10.0 15.0 Volatility The portfolios may also invest in other CI mutual funds to enhance portfolio efficiency. Through strategic asset allocation, the asset mix of each portfolio is adjusted to maximize return for a given level of risk.
3. The value of great managers. The CI Investment Consulting team selects managers for the underlying investment pools of Portfolio Select Series based on their investment process, proven value added and fit into the overall portfolio diversification strategy. You benefit from: Investments that are exclusive to the program, with each portfolio manager dedicated to a specific mandate based on their area of strength. An effective mix of investment styles and the best fit of portfolio managers. Foreign investments using currency management strategies to reduce volatility. Portfolio managers with proven track records, who have won 54 Lipper Fund Awards since 2007, 112 FundGrade A+ Awards, and 34 Morningstar Awards over the past 10 years, including Signature Global Asset Management s Chief Investment Officer Eric Bushell, named Morningstar Fund Manager of the Decade in 2010. For its managed solutions programs, CI Investment Consulting itself was the winner of Morningstar s award for Best Fund of Funds program in 2011, 2012, and 2013.
4. Enhanced tax efficiency. Portfolio Select Series is based on CI Corporate Class, which offers the following tax benefits for non-registered accounts: The low dividend payout policy. Capital losses from some corporate class funds may offset gains in other funds in the structure. Tax-efficient income. Corporate class dividends are in the form of Canadian and capital gains dividends currently the most tax-efficient sources of income. This is the case regardless of investment mandate. The ability to generate tax-efficient cash flow through T-Class funds. T-Class offers investors the ability to access cash flow from Corporate Class as a return of capital. The benefit to all Corporate Class investors of aggregating expenses for all investment mandates across one corporate structure. These expenses will effectively reduce interest income and foreign dividends within the structure.
A portfolio tailored to your needs Portfolio Select Series offers nine optimized portfolios that lie on the efficient frontier meaning they maximize returns while minimizing volatility for that level of risk tolerance. Portfolio Select Series is designed to offer a portfolio to meet the needs of every investor. Efficient Frontier 60i40e 50i50e 40i60e 30i70e 20i80e 100e 70i30e Return 80i20e 100% income * Volatility Income Canadian Equity U.S. Equity International Equity 100% Income* 100% Income A strategically diversified income portfolio designed for maximum income generation and preservation of capital. 80i20e 80% Income, 20% Equity A strategically diversified income portfolio with a small equity component for modest capital growth. 70i30e 70% Income, 30% Equity A strategically diversified income portfolio with a small equity component for modest capital growth. 60i40e 60% Income, 40% Equity A strategically diversified portfolio split between income and equities designed for steady, long-term growth. 50i50e 50% Income, 50% Equity A strategically diversified portfolio split evenly between income and equities designed for steady, long-term growth. 40i60e 40% Income, 60% Equity A strategically diversified portfolio with an equity component designed for steady, long-term growth. 30i70e 30% Income, 70% Equity A strategically diversified portfolio with a small income component designed to mitigate short-term volatility. 20i80e 20% Income, 80% Equity A strategically diversified portfolio with a small income component designed to mitigate short-term volatility. 100e 100% Equity A strategically diversified equity portfolio designed for maximum long-term capital growth. * Available as Select Income Managed Corporate Class.
For more information, contact your Financial Advisor or visit www.ci.com/portfolioselect. Commissions, trailing commissions, management fees, and expenses all may be associated with mutual fund investments. Please read the prospectus, before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. CI Investments, the CI Investments design, Cambridge, and Harbour Advisors are registered trademarks of CI Investments Inc. Portfolio Select Series and Signature Global Asset Management are trademarks of CI Investments Inc. Cambridge Global Asset Management is a business name of CI Investments Inc. used in connection with its subsidiary, CI Global Investments Inc. Certain portfolio managers of Cambridge Global Asset Management are registered with CI Investments Inc. Lipper Fund Awards are given by Lipper, Inc. to recognize funds that have provided superior consistency and risk-adjusted returns when compared to a group of similar funds. Awards are given to the fund with the highest value within its category for the time periods of three, five and 10 years according to the Lipper Leader ratings for Consistent Return, which reflect funds¹ historic returns, adjusted for volatility, relative to peers. Lipper Leader ratings change monthly. For more information, see lipperweb.com. Although Lipper makes reasonable efforts to ensure the accuracy and reliability of the data contained herein, the accuracy is not guaranteed by Lipper. Lipper ratings and Lipper Fund Awards are not intended to predict future results. This does not constitute and is not intended to constitute investment advice or an offer to sell or buy securities. The Lipper Fund Awards are part of the Thomson Reuters Awards for Excellence, a global family of awards that celebrate exceptional performance throughout the professional investment community. For more information, visit excellence. thomsonreuters.com. Thomson Reuters Copyright 2014, All Rights Reserved. The FundGrade A+ rating is used with permission from Fundata Canada Inc., all rights reserved. The FundGrade A+ calculation is supplemental to the monthly FundGrade ratings and is calculated at the end of each calendar year. The FundGrade rating system evaluates funds based on their risk-adjusted performance, measured by Sharpe Ratio, Sortino Ratio, and Information Ratio. The score for each ratio is calculated individually, covering all time periods from 2 to 10 years. The scores are then weighted equally in calculating a monthly FundGrade. The funds with the highest 10% receive a grade of A, the next 20% a grade of B, the middle 40% a grade of C, the next 20% a grade of D, and the lowest 10% a grade of E. Eligible funds must have received a FundGrade rating every month in the previous year. The FundGrade A+ uses a GPA-style calculation, where each monthly FundGrade from A to E receives a score from 4 to 0, respectively. A fund s average score for the year determines its GPA. Any fund with a GPA of 3.5 or greater is awarded an A+ rating. For more information, see www.fundgradeawards.com. Morningstar Awards. Morningstar Inc. All Rights Reserved. Awarded to Portfolio Series for Best Fund of Funds program in 2011 and 2012, and to Portfolio Select Series in 2013. 2 Queen Street East, Twentieth Floor, Toronto, Ontario M5C 3G7 I www.ci.com Head Office / Toronto 416-364-1145 1-800-268-9374 Calgary 403-205-4396 1-800-776-9027 Montreal 514-875-0090 1-800-268-1602 Vancouver 604-681-3346 1-800-665-6994 Client Services English: 1-800-563-5181 French: 1-800-668-3528 1605_1025_E (6/16)