2 Queen Street East, Twentieth Floor Toronto, Ontario M5C 3G7 www.ci.com Telephone: 416-364-1145 Toll Free: 1-800-268-9374 Fax: 416 364-6299 May 28, 2012 CI Investments announces fund mergers and other changes Dear Advisor, Today, we are announcing a series of changes to our Castlerock and CI funds. In brief, we are integrating the Castlerock mutual funds into CI, which will entail renaming some of those funds and merging others into existing CI funds. We are also taking this opportunity to further streamline our lineup through other fund mergers, which will affect certain segregated funds. Please note that clients invested in the affected mutual and segregated funds will be notified of these changes. Furthermore, investors in certain terminating funds and continuing CI funds will be asked to vote on the mergers. This letter outlines the changes and the notices being sent to clients. Our press release on these changes can be viewed at www.ci.com. Why are we making these changes now? CI Financial acquired Hartford Investments Canada Corp. in December 2010 and rebranded the company and the funds as Castlerock. We continued to operate Castlerock Investments separately from CI because the Castlerock funds are administered by a third-party service provider. Now, we are in a position to move the administration of the Castlerock funds to CI s back office, which also allows us to merge funds to reduce the duplication in mandates between the two fund families and within the CI lineup. How will this benefit clients? Investors in the Castlerock funds are benefiting from the economies of scale provided by a larger investment company. Castlerock investors will be able to switch into a much wider choice of funds within the CI lineup, including the tax-efficient CI structure. Castlerock investors are benefiting from CI s lower operating costs, as CI funds have a fixed administration fee that is lower than the Castlerock funds variable operating expenses. For those Castlerock funds that are not being merged into other funds, CI s fixed administration fee will be implemented on December 31, 2012, as approved by the funds unitholders in April 2011. We are also reducing the management fees on Series B units of those funds to the Series A level, effective December 31, 2012. For example, the management fee on Series B of Castlerock Global Leaders Fund will be reduced to 2.00% from 2.20%. In addition, CI has a much stronger public profile and brand than does Castlerock, and the changes will clarify the management of the funds for clients.
Back office conversion The Castlerock mutual funds will be converted to the CI platform on or about July 26, 2012. As a result, investors in the Castlerock mutual funds will receive new account numbers and the funds will be assigned new CIG fund codes. The current HIC fund codes will no longer be used. We will announce the new fund codes prior to the conversion. Name changes The names of the following mutual funds will be changed on or about July 26, 2012: Current fund name Castlerock Canadian Dividend Fund Castlerock Canadian Dividend Growth Fund Castlerock Canadian Growth Companies Fund Castlerock Capital Appreciation Fund Castlerock Enhanced Yield Fund Castlerock Global Balanced Fund Castlerock Global Leaders Fund Castlerock International Equity Fund Castlerock Pure Canadian Equity Fund Castlerock U.S. Dividend Growth Fund CI Emerging Markets CI Emerging Markets Fund CI Global Bond CI Global Bond Fund CI Global Science & Technology CI International CI International Fund New fund name CI Canadian Dividend Fund CI Canadian Dividend Growth Fund Cambridge Canadian Growth Companies Fund CI U.S. Equity Plus Fund Signature Enhanced Yield Fund Black Creek Global Balanced Fund Black Creek Global Leaders Fund Black Creek International Equity Fund Cambridge Pure Canadian Equity Fund CI U.S. Dividend Growth Fund Signature Emerging Markets Signature Emerging Markets Fund Signature Global Bond Signature Global Bond Fund Signature Global Science & Technology Signature International Signature International Fund Mutual fund mergers CI is proposing to merge 19 funds, effective at the opening of business on September 10, 2012, pending the required securityholder and regulatory approvals. All of the corresponding terminating and continuing funds are managed by the same portfolio management teams and, in most cases, the funds have similar mandates. All of the continuing funds have management fees that are the same or lower than those of their corresponding terminating funds. In a few cases, we have created new classes of the continuing fund to ensure that existing clients do not pay a higher management fee. The CI Investments Board of Governors, acting in its capacity as the independent review committee (IRC) for the funds, has reviewed all of the proposed mergers with respect to conflict of interest issues and has determined that the mergers achieve a fair and reasonable result for the funds.
Mergers that do not require securityholder approval The funds listed below can be merged without the approval of securityholders because the mergers have received IRC approval, the mandates of the corresponding terminating and continuing funds are similar, and the mergers are being implemented on a tax-free rollover basis. Investors in these funds will be notified of the mergers in letters to be mailed in June or early July. Terminating Fund Castlerock Balanced Growth Portfolio Castlerock Balanced Portfolio Castlerock Canadian Balanced Fund Castlerock Canadian Money Market Fund Castlerock Global High Income Fund Castlerock Growth Portfolio Castlerock Total Return Fund CI International Balanced CI International Balanced Fund CI Value Trust Continuing Fund Portfolio Series Balanced Growth Fund Portfolio Series Conservative Balanced Fund Signature Canadian Balanced Fund CI Money Market Fund Signature Corporate Bond Fund Portfolio Series Growth Fund Signature Income & Growth Fund Signature Global Income & Growth Signature Global Income & Growth Fund Cambridge American Equity Mergers requiring securityholder approval The following mergers require the approval of securityholders in the terminating funds: Terminating Fund Castlerock Canadian Bond Fund Castlerock Canadian Stock Fund Castlerock Canadian Value Fund Castlerock Conservative Portfolio CI European CI European Fund CI Japanese Lakeview Disciplined Leadership U.S. Equity Fund Signature Mortgage Fund Continuing Fund Signature Canadian Bond Fund Cambridge Canadian Equity CI Canadian Investment Portfolio Series Conservative Fund CI International CI International CI Pacific Cambridge American Equity Signature Short-Term Bond Fund
In addition, approval is required from securityholders in the following continuing funds: Cambridge American Equity, CI International, CI Pacific and Signature Global Income & Growth. Investors in these funds will receive a notice of meeting, management information circular and proxy form for meetings scheduled for August 31, 2012. Segregated funds The mergers will indirectly affect 22 segregated funds that invest in units or shares of terminating CI funds. Following the mergers, the segregated funds will invest in units or shares of the respective continuing funds, and may have their names changed. Investors in the affected segregated funds will be notified of the changes by July 10, 2012. Please note that where the current underlying fund is CI European or Signature Mortgage, clients will have the right to redeem their units without paying deferred sales charges. This free exit is offered because the new underlying fund is not substantially similar to the current underlying fund. This option will be explained in the client notification. The changes are listed below, according to the underlying fund: Underlying fund changing from CI International Balanced to Signature Global Income & Growth: CI International Balanced Guaranteed Investment Fund CI International Balanced Guaranteed Investment Fund Clarica SF CI International Balanced Fund SunWise CI International Balanced SunWise 2001 CI International Balanced Corporate SunWise CI International Balanced Fund SunWise 2001 CI International Balanced Fund SunWise Elite CI International Balanced Fund SunWise Essential CI International Balanced Segregated Fund CI Signature Global Income & Growth Guaranteed Investment Fund CI Signature Global Income & Growth Corporate Guaranteed Investment Fund Clarica SF CI Signature Global Income & Growth Fund SunWise CI Signature Global Income & Growth SunWise 2001 CI Signature Global Income & Growth SunWise CI Signature Global Income & Growth Fund SunWise 2001 CI Signature Global Income & Growth Fund SunWise Elite Premier CI Signature Global Income & Growth Fund SunWise Essential Premier CI Signature Global Income & Growth Segregated Fund
Underlying fund changing from CI Value Trust to Cambridge American: Clarica MVP U.S. Equity Fund Clarica MVP 1987 U.S. Equity Fund Clarica SF Premier CI Value Trust Clarica SF CI Value Trust SunWise CI American Growth Fund SunWise 2001 CI American Growth Fund SunWise CI Value Trust SunWise 2001 CI Value Trust SunWise Elite CI Value Trust Corporate Fund No change No change Clarica SF Premier CI Cambridge American Equity Clarica SF CI Cambridge American Equity Corporate SunWise CI Cambridge American Growth Fund SunWise 2001 CI Cambridge American Growth Fund SunWise CI Cambridge American Equity Corporate SunWise 2001 CI Cambridge American Equity SunWise Elite CI Cambridge American Equity Underlying fund changing from CI European to CI International: Clarica MVP European Growth Fund Clarica MVP 1987 European Growth Fund Clarica SF CI European Fund Clarica MVP International Fund Clarica MVP 1987 International Fund Clarica SF CI International Underlying fund changing from Signature Mortgage to Signature Short-Term Bond: Clarica SF CI Signature Mortgage Fund Clarica SF Premier CI Signature Short-Term Bond Fund For further information We understand that these changes are extensive and we appreciate your patience. To assist you in helping your clients who are affected by these moves, we will be posting copies of all client communications on www.ci.com. Please contact CI Client Services at 1-800-563-5181 if you have any questions. Thank you for your ongoing support. Sincerely, Derek J. Green President CI Investments 1205-0778_E (05/12)