CI PREFERRED PRICING and

CI PRIVATE WEALTH

CI Dealer Relations

April 4, 2017

TM

TM

Agenda

• Current environment

• Introducing CI Preferred Pricing

• Extended family linking

• Class P: unembedded fee option

• Operational considerations

• CI Private Wealth

• Implications for CI Private Investment Management

• Communication timelines

CURRENT ENVIRONMENT

Simplifying the Advisor Decision Process

Fee-based

Class P Class A Class F

Commission-based

Embedded Fee-transparent

The new world

May be commingled in the same CI account

What is my business model?

Responding to and anticipating change

CI’s Core Business

(A & F)

Product A

Product C

Product B

CI’s Core

Business

(A & F, …..)

Industry is moving away from the Alphabet Soup Model

• So is CI

Focusing on ease of business

CI Preferred PricingTM

1. Automatic Reclassifications

2. High watermark protection

4. Flexible fee options

3. Extended family linking

CI PREFERRED PRICING MODEL: CLASS A & F

Price discounts automatically applied

CI Preferred Pricing includes all of CI’s core business

• Mutual fund Class A (ISC) and Class F assets receive preferred pricing

• Client’s pricing tier is determined by high watermark

As clients’ qualifying assets

reach various thresholds

CI switches to most cost-effective

fund class

Pricing tiers

• Fee reductions at $150,000/account

• Tiered flat fee model back to $1

– All assets reclassified to the appropriately priced fee tier class

• No fund minimum requirements

• Can continue to use existing Class A & F fund codes

Base Tier

Tier 1

Tier 2

Tier 3

Tier 4

Tier 5

$0 - $149,999.99

$150,000 - $499,999.99

$500,000 - $999,999.99

$1,000,000 - $2,499,999.99

$2,500,000 - $4,999,999.99

$5,000,000+

What is the high watermark? How does it work?

• The highest peak in value of qualifying assets in an individual account or aggregated assets of a Family Group on which fees are based:

– Qualifying core CI mutual fund and segregated fund assets contribute to the high watermark calculation

– Pricing tiers benefit from positive markets

– Clients are not penalized for negative market performance

– Weekly high watermark assessments

– High watermark assessments may be requested at any time

What qualifies for the high watermark and CI Preferred Pricing

High watermark includes all of CI’s retail assets*

CI Preferred Pricing applied to CI’s core assets

Fund Classes (including T-Class where applicable)

Qualifying HWM assets

Eligible within CI Preferred Pricing

Core Mutual Fund Assets (A, F, P)

ISC assets only

Product-specific Mutual Fund Assets (PIM, PMA)

Capped Mutual Fund Assets

Segregated Fund Assets (SWESS, SunWise Elite, GIF, BPI Legacy)

*Labour-sponsored funds and closed-end funds are excluded from CI Preferred Pricing and these assets do not contribute to the high watermark calculation.

** Automatic switch of DSC and LL mature units to ISC equivalent available June 2017 (unique transaction type) for all assets that qualify for CI Preferred Pricing.

.

What affects the high watermark calculation?

• Cash flow in transactions

• Linking accounts

• Positive performance

• Cash flow out transactions

• Unlinking accounts

EXTENDED FAMILY LINKING

Extended family benefits from discounted pricing

• Family Groups established with $250,000 in aggregate qualifying assets

• Family members can reside at different addresses

• Client signatures not required when linking for pricing purposes only

• Multiple registration types accommodated

Consolidated, family pricing is more accessible

Parents / Grandparents

Child/Siblings & Spouse(s)

Grandchild & Spouse

Corporation

Extended family linking: simplified

• Simplified administration:

• Account Linking Form

– advisor signature

• Must belong to same dealer rep

CLASS P: UNEMBEDDED FEE OPTION AVAILABLE TO ALL DEALERSHIPS

Class P: unembedded fee option

• Class P to be launched as part of our core offering

• Available on all funds (mirrors Class F offering)

• Fund minimum $500

• Fee collection methodology similar to PIM Class O

– Quarterly redemption of units (program fee)

– Advisors retain monthly revenue stream

• Can be commingled with Class A and F assets

• Single fund code used for all pricing tiers

New Class P available to all investors

• Tiered flat fee pricing model automatically applied (class agnostic)

• Flat rate applied to all assets, back to dollar one

Administration Fee: Variable

(same as Class A/F)

Management Fee: Flat rate determined by

asset level

Dealer Service Fee: Negotiated, 0 – 1.25%

Embedded fees: • funds pay these daily, factored into daily NAV • blended tax rate applied

External fees: • administered, charged by CI • calculated daily, redeemed quarterly • tax rate determined by account address • dealer fee-for-service eligibility determined by

dealers • default DSF is 0%

OPERATIONAL CONSIDERATIONS

Price discounts automatically applied

Automatic reclassification switches keep things simple

Tax-efficient No additional CRA filing

Fee transparency

Mitigates compliance issues

• No capital gains • Not taxable

• No year-end tax filing requirements

• Full fee disclosure

• Flat fee charged from dollar one

• Automated weekly reassessments

Accessible

Current Fund Code (Base)

Tiered Fund Code (New)

Purchase – New account (unlinked)

Purchase – Existing account

Redemption

Switch

PAC

SWP

Automatic rebalancing

IFEs

Simplified administration

• Purchase into either existing CI fund codes or new tiered fund codes

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CI

Matured DSC and LL units

DSC and LL mature units included for high watermark assessment calculation

• Automatic switch of DSC and LL mature units to ISC equivalent (unique transaction type) for the purposes of qualifying units for preferred pricing

• Occurs quarterly – last month of each calendar quarter

• Available in June 2017

CI Preferred Pricing: simplicity going forward

Day 1:

• Dealer approves CI Preferred Pricing

Every Friday

• High Watermark Assessment (applicable assets switched to appropriately priced tiered fund)

Quarter end:

• Automatic switch of units mature of DSC/LL schedule

• Automatic linking of similar registered accounts (SIN, address, dealer rep code)

Client experience and exemptive relief

Client experience: notifications streamlined

• Reclassification switches will be detailed as a unique transaction

• Client held assets: quarterly statements address client notification requirements

Exemptive relief applications

• Fund Facts delivery relief

– Fund Facts revised to include all tiered fund classes on a single Fund Facts

• Trade confirmation delivery relief

Dealer and client notifications

CI notification:

• Amendment to CI Dealer Agreement to be completed and submitted to CI upon dealer approval

Client notification:

• Affected clients must be made aware of CI Preferred Pricing

• CI has created a template letter to address regulators’ client notification expectations

• Also, we have created two additional template letters to facilitate any other communication with investors

Summary of administrative considerations

• Fund-initiated reclassification switches are processed weekly and reported in the TS file:

Inter-Class Switch 5, 1, W / 6, 1, W

• Fund-initiated mature back-end to front-end switches are processed quarterly and reported in the TS file:

Inter-Load Switch 5, 1, J / 6, 1, J

• Effective May 2017 Classes A, F and P mutual funds can be held together in a single CIG fund account.

CI’S OFFER FOR THE AFFLUENT

CI Private Wealth: automatic enrolment

As client assets reach eligibility thresholds, CI Private Wealth branding is automatically applied

(Classes A, F and P)

• $150,000/account

• $250,000/Family Group

At this level, clients will start to receive CI Private Wealth branded:

• Quarterly client statements

• Optional consolidated statements

• Trade confirmations

• Proposal document

Consolidated reporting options: CI-generated branding

Simplified administration:

• Account Linking and Reporting Form

– client signatures required

• Must reflect same registration type

• Reinforces advisor’s brand (client-held business)

WHAT THIS MEANS FOR CI PRIVATE INVESTMENT MANAGEMENT (PIM)

What is happening with PIM?

• Soft-capping of PIM targeting end of Q3 2017

– Any PIM account/household established prior to the capping date will be allowed to remain in PIM and continue transacting

– Buffer period while dealers review/approve CI Preferred Pricing/CI Private Wealth

• Any new client assets received after the capping date will need to be directed to Class A, F or P

COMMUNICATION TIMELINES

Communication timelines

Timeline targets are dependent on regulatory approvals:

• April:

– CI Preferred Pricing press release announcing Q2 availability

– Advisor e-mail blast • -

• May: – CI Preferred Pricing product launch and press release

• June: – PIM soft capping announcement

SUMMARY

Summary

• Simplified client experience – Only 3 classes of funds: A, F & P

– Weekly high watermark assessments includes all core business

– Automatic enrollment use existing fund codes

– Can use existing accounts no KYC/application

• Automatic price discounts for clients and improved accessibility – Price discounts begin at $150K

– Tiered flat fee model back to $1

• Extended family linking – Optional consolidated statements

• Scheduled launch date Q2 2017

Thank you

®CI Investments and the CI Investments design are registered trademarks of CI Investments Inc. ™CI Preferred Pricing and CI Private Wealth are trademarks of CI Investments Inc. This communication is published by CI. Every effort has been made to ensure that the material contained herein is accurate at the time of publication. However, CI cannot guarantee its accuracy or completeness and accepts no responsibility for any loss arising from any use of or reliance on the information contained herein. CI and its affiliates will not be responsible in any manner for direct, indirect, special or consequential damages howsoever caused, arising out of the use of this presentation. You may not modify, copy, reproduce, publish, upload, post, transmit, distribute, or commercially exploit in any way any content included in this presentation. You may download this presentation for your activities as a financial advisor provided you keep intact all copyright and other proprietary notices. Unauthorized downloading, re-transmission, storage in any medium, copying, redistribution, or republication for any purpose is strictly prohibited without the written permission of CI.

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