Winter 2012Early Edition

www.ci.com/perspective

Cambridge Income Fund p.2Signature High Yield Bond Fund p.5

Introducing two new tax-efficient monthly income funds

Funds In Focus

Scorecard November 30, 2011

Lead Manager

Y-T-D(%)

1 MTH(%)

6 MTH(%)

1 YR(%)

3 YR(%)

5 YR(%)

10 YR(%) Life (%)

Portfolio Series

Portfolio Series Balanced CI Investment Consulting -2.5 0.1 -5.5 0.3 7.8 -0.1 3.8 6.6 (Nov.‘88)

Portfolio Series Balanced Growth CI Investment Consulting -3.5 0.1 -6.3 -0.3 8.2 -0.6 N/A 2.9 (Dec.’01)

Portfolio Series Conservative CI Investment Consulting -0.2 0.2 -3.4 1.9 8.4 1.4 4.4 4.6 (Dec.‘97)

Portfolio Series Conservative Balanced CI Investment Consulting -1.1 0.2 -4.3 1.2 8.2 0.7 N/A 3.7 (Dec.’01)

Portfolio Series Growth CI Investment Consulting -4.6 0.1 -7.4 -1.0 7.8 -1.5 N/A 2.2 (Dec.’01)

Portfolio Series Income CI Investment Consulting 3.1 0.2 -0.9 4.2 9.6 3.5 5.0 4.9 (Dec.‘97)

Portfolio Series Maximum Growth CI Investment Consulting -7.0 -0.1 -9.6 -2.6 7.5 -2.9 N/A 1.2 (Dec.’01)

Global Equity Funds

Black Creek Global Leaders Bill Kanko 2.0 -4.3 N/A N/A N/A N/A N/A 2.0 (Aug.’11)

Black Creek International Equity Richard Jenkins 1.2 -2.2 N/A N/A N/A N/A N/A 1.2 (Aug.’11)

Cambridge Global Equity Alan Radlo -10.2 0.6 -11.4 -5.9 7.2 N/A N/A -0.7 (Dec.’07)

CI Emerging Markets E. Bushell / M. Strauss -15.4 -2.0 -11.0 -12.1 14.4 -0.9 5.7 6.5 (Sept.’91)

CI Global High Dividend Advantage William Priest 5.1 1.2 -2.4 8.6 7.2 -1.8 N/A 0.0 (Jan.’06)

CI Global Value John Hock -4.4 0.8 -7.1 0.2 5.4 -4.9 -0.3 0.6 (June’96)

Harbour Foreign Equity S. Jenkins / G. Coleman -4.4 0.5 -8.0 1.3 12.8 -3.0 N/A 0.5 (Dec.’01)

Signature Select Global E. Bushell / S. Vali -7.4 -0.6 -8.7 -3.8 N/A N/A N/A 2.1 (Jul.’10)

American Equity Funds

CI American Managers® Multiple Managers -0.4 2.4 -4.6 2.8 8.5 -3.5 -0.4 0.4 (Jul.’00)

CI American Value W. Priest / D. Pearl 0.3 2.2 -5.0 3.1 5.2 -2.7 -0.2 8.1 (Aug.’01)

Canadian Equity Funds

Cambridge Canadian Equity A. Radlo / B. Snow -2.6 1.1 -7.6 2.3 11.4 N/A N/A 0.9 (Dec.’07)

CI Canadian Investment Daniel Bubis -10.6 -2.0 -13.6 -6.4 8.7 -0.8 6.6 8.4 (Nov.‘32)

Harbour G. Coleman / S. Jenkins -6.6 -0.5 -8.9 -1.6 9.1 1.2 6.9 7.1 (June’97)

Signature Select Canadian Eric Bushell -7.8 -1.2 -10.7 -2.9 9.5 0.3 7.0 9.4 (May’98)

Synergy Canadian David Picton -7.8 0.1 -10.4 -4.2 9.9 -1.3 6.4 8.3 (Dec.’97)

Balanced Funds

Black Creek Global Balanced Richard Jenkins 2.2 -2.3 N/A N/A N/A N/A N/A 2.2 (Aug.’11)

Cambridge Cdn. Asset Allocation A. Radlo / R. Swanson -1.0 0.3 -6.1 3.2 11.8 N/A N/A 2.7 (Dec.’07)

Harbour Growth & Income G. Coleman / S. Jenkins -6.7 -1.0 -7.9 -2.1 6.6 0.6 5.3 5.2 (June’97)

Signature Global Income & Growth Bushell / Dutkiewicz / Marshall -4.3 -0.1 -6.1 -1.3 10.7 N/A N/A -1.4 (Feb.’07)

Signature Income & Growth Bushell / Dutkiewicz / Marshall -3.6 -1.0 -6.8 -0.4 11.1 2.0 6.4 6.3 (Nov.’00)

Industry-Specific Funds

Signature Global Energy Scott Vali -6.3 2.0 -9.8 0.3 10.5 2.2 12.8 12.4 (June’98)

Signature Canadian Resource Scott Vali -9.2 0.7 -10.0 -3.0 13.5 4.6 16.2 10.7 (Apr.’97)

Income Funds

Signature Canadian Bond Dutkiewicz / Shaw / Simon 6.0 0.9 4.0 6.0 6.2 4.2 4.4 6.0 (Jan.’93)

Signature Corporate Bond Dutkiewicz / Shaw / Marshall 1.6 -0.7 -2.0 2.1 10.2 4.1 N/A 4.1 (Jan.’02)

Signature Diversified Yield D’Angelo / Fitzgerald / Marshall -2.0 -0.4 -5.7 -0.8 N/A N/A N/A 4.0 (Nov.’09)

Signature Dividend Bushell / Hadwen / Shaw -2.2 -0.8 -7.4 0.9 13.4 1.0 4.6 6.0 (Oct.’96)

Signature High Income D’Angelo / Fitzgerald / Marshall 3.3 0.3 -2.4 4.5 16.2 4.6 9.5 9.6 (Dec.’96)

FOR ADVISOR USE ONLY

W I N T E R 2 0 1 2 E A R L Y E D I T I O N P E R S P E C T I V E A S A T D E C E M B E R 3 1 , 2 0 1 1 1

I hope you had an excellent holiday season and are rested and ready for the new year. Certainly, last year’s challenging markets have made your job more diffi cult. Many clients will be fatigued by the constant downbeat news reports on the economy and fi nancial markets.

However, we know that markets move in cycles and will inevitably resume their upward trend, rewarding those who remain invested. It has often been the case that times of turmoil presented some of the best investment opportunities.

Whatever the market conditions, CI is committed to providing you with the solutions and the information you need to build your business. As part of that commitment, we have just launched two new income funds to meet the needs of those clients seeking higher yields or a conservative holding within their portfolios.

First is Cambridge Income Fund, a diversifi ed income fund managed by Bob Swanson of Cambridge Advisors. Bob achieved excellent results as lead portfolio manager of income and other funds at his previous fi rm, Fidelity Investments, racking up seven Lipper Fund Awards over two years. That expertise is now available at the Cambridge funds. For more information on this new fund, please see the interview with Bob on page 2. I also urge you to consider other funds in the strong-performing Cambridge lineup, such as Cambridge Canadian Asset Allocation Corporate Class, which was the top-performing fund in its category over one and three years as of November 30, 2011.

Our second new fund is Signature High Yield Bond Fund, CI’s fi rst fund to focus exclusively on high-yield corporate bonds. As the manager of one of Canada’s largest high-yield portfolios, Signature has proven experience in this asset class. In the story starting on page 5, Lead Manager Geof Marshall explains why high-yield bonds are an attractive investment opportunity today.

Another option for keeping clients invested while mitigating volatility is balanced funds. CI has a strong lineup in this category, with funds that offer a Canadian, global or income focus. For an overview, see page 22.

And for clients who wish to invest with the security of guarantees, CI and Sun Life Financial are making enhancements to SunWise Essential Series, including the option for a guaranteed income for life starting as early as age 55. Those changes are effective this month and are outlined on page 27.

We also have a number of other exciting initiatives to support your business in 2012, including CI Mobile, our application for the iPad, which was launched in December. It offers quick and convenient access to key information from CI, including prices, performance, fund codes, commentaries, fund profi les and illustration tools. It is available free at the Apple App Store.

To ensure you have the latest views and analysis on fi nancial markets, we are holding the CI Digital Roadshow on January 18 – a half-day of webcast presentations by our portfolio managers. Summaries of the presentations will be posted on the CI Market Outlook page, which can be reached through What’s New on our home page.

We are also looking forward to our premier event of the year, our second annual Leadership Forum, to be held May 15-18 in Las Vegas. This advisor conference will have a top-notch agenda of presentations and activities designed to be relevant, interesting and entertaining.

If you need information on these products and events, or any assistance whatsoever, please contact your CI Sales Team.

In closing, I wish you a happy and prosperous 2012.

Sincerely,

Derek J. GreenPresidentCI Investments

Dear Advisor,

Winter 2012

2 W I N T E R 2 0 1 2 E A R L Y E D I T I O N P E R S P E C T I V E A S A T D E C E M B E R 3 1 , 2 0 1 1

Cambridge Income Fund Q&A

Robert Swanson joined Cambridge Advisors in September as Principal and Portfolio Manager. Bob is co-manager of Cambridge Canadian Asset Allocation Corporate Class and is providing guidance to the Cambridge team on asset allocation, portfolio construction and risk management. In addition, he is lead portfolio manager of the new Cambridge Income Fund and Cambridge Income Corporate Class.

With more than 27 years’ investment experience, Bob is an ideal candidate to lead the new fund. At his previous firm, he was lead portfolio manager of several mutual funds with combined assets under management of $20 billion and head of its Canadian asset allocation team. In the past two years, funds he managed won an impressive seven Lipper Fund Awards. In this interview, Bob discusses the new funds.

Cambridge Income Fund – A diversifi ed approach to income

W I N T E R 2 0 1 2 E A R L Y E D I T I O N P E R S P E C T I V E A S A T D E C E M B E R 3 1 , 2 0 1 1 3

Cambridge Income Fund Q&A

[Q] Bob, please describe the new fund.

SWANSON: Cambridge Income Fund is designed to provide a stable, sustainable income stream that is tax effi cient. It’s for investors who are seeking income with low volatility and downside protection. To achieve that, the fund has a broad, “go anywhere” mandate that allows us to invest in a diverse mix of income-generating securities from around the world. Most investors require higher yields than those provided by government bonds, and the fund’s diversifi cation by region and asset class allows us to seek higher yields while managing risk.

[Q] What is the general asset mix of the fund?

SWANSON: Our general target is 50% fi xed income and 50% high-yielding equities. This includes an allocation of about 20% to convertible bonds, which have characteristics of both bonds and equities.

[Q] Can you tell us more about the high-yield equity holdings and your security selection process?

SWANSON: Currently, approximately 10% is allocated each to real estate investment trusts, preferred shares, high-yielding common shares, and infrastructure/utilities stocks. Across all sectors, the holdings are a mix of Canadian and global securities. At this point, the foreign holdings are primarily U.S. based, but we have identifi ed some European securities with excellent yields. These opportunities have arisen because the sovereign debt crisis has driven down prices indiscriminately.

We employ a bottom-up security selection process, and pay particular attention to cash fl ow and a company’s ability to service its fi xed obligations. Companies are then ranked based on the strength of their ability to service both interest and dividends, and their capacity to increase dividends. These rankings are then compared to their dividend yields to determine the relative attractiveness of each security.

[Q] Tell us more about your bond holdings.

SWANSON: The bond portfolio consists of about 60% investment-grade and 40% high-yield corporate bonds. In the high-yield portion, there is nothing lower than BB or B-rated – so they are high quality for the category. The convertible bonds are not offi cially rated, but their quality level varies – with some being equivalent to investment grade and others can be considered high yield. Convertible bonds offer the potential upside of converting the bond into

equity at a fi xed rate, while they provide protection on the downside through cash fl ow from the coupon payments.

[Q] What is the yield of the fund?

SWANSON: The gross yield on the portfolio is over 5%. The targeted payout on the trust version of the fund is three cents per unit per month, for a current yield of 3.6%. We want a sustainable payout and will try to avoid paying out return of capital. It’s important to note that the fund has a forward contract, so that distributions are generally paid in the form of capital gains, providing a boost to investors’ after-tax returns in non-registered portfolios compared to funds that provide distributions primarily in the form of interest income.

[Q] Are you hedging against currency fl uctuations?

SWANSON: The fund’s U.S. dollar exposure is about 50% hedged, and we drill down into the holdings to determine the level of hedging. We look at the companies’ location, as well as the impact of a rising or falling Canadian dollar has on each sector and the individual companies in the portfolio.

[Q] What is your current outlook for income markets?

SWANSON: Canadian and U.S. government bonds are over-priced and providing yields below 2%, which doesn’t even keep pace with infl ation. At this point, I have no allocation to government bonds and believe that corporate bonds, especially high yield, are generally more attractive.

Canadian yield products also look expensive now, especially REITs. In the global search for yield, foreign investors have moved into Canada, adding to the strong domestic demand for these securities. In addition, corporate bond spreads are much narrower in Canada than they are elsewhere. All of this refl ects that the fact that the Canadian economy is in good shape relative to many other developed markets and the bond market has been strong.

Overall, the valuations on equities are reasonable, although income-related equities are becoming more expensive. I like the preferred market because it offers a nice downside cushion and the stocks have higher yields.

In this environment, the most attractive opportunities for higher-yielding income investments are being found in non-traditional asset classes outside of the Canadian market. Cambridge Income Fund provides a way for Canadian investors to benefi t from those opportunities.

4 W I N T E R 2 0 1 2 E A R L Y E D I T I O N P E R S P E C T I V E A S A T D E C E M B E R 3 1 , 2 0 1 1

[Q] With that in mind, can you summarize all of the benefi ts of this fund?

SWANSON: The fund offers a stable income stream and an attractive yield. As with all of the funds managed by Cambridge, it has a strong focus on providing downside protection. Stability is provided by the broad diversifi cation of both securities and income-related asset classes within the fund. Investors benefi t from the fl exible mandate, which is not tied to any benchmark, sector or geographic constraints. This allows us to seek out the most attractive high-yield opportunities available. With interest rates at historically low levels, we have to be more creative in the companies and securities in which we invest. We can also be very nimble in managing the fund and respond to changing market conditions – when interest rates start rising, for example.

[Q] Any other reasons why investors should buy this fund?

SWANSON: As mentioned, the income stream is tax effi cient for non-registered investors. In addition, there is currency hedging. Along with the exposure to a diverse portfolio of global high-yield securities with active management of holdings and asset allocation, Cambridge Income Fund has a combination of benefi ts that most Canadian investors cannot duplicate on their own. It provides income investors with the proven expertise of the Cambridge team in security selection and asset allocation.

Thank you, Robert.

Cambridge Income Fund Q&A

W I N T E R 2 0 1 2 E A R L Y E D I T I O N P E R S P E C T I V E A S A T D E C E M B E R 3 1 , 2 0 1 1 5

Spotlight Geof Marshall

Geof MarshallVice-President, Portfolio Management and Portfolio Manager, Signature Global Advisors

The new Signature High Yield Bond Fund and Signature High Yield Bond Corporate Class have what no other high-yield fund in Canada has – the expertise of the 30 member Signature Global Advisors team.

Geof Marshall, Vice-President at Signature and Lead Portfolio Manager of the new fund, says he has just one rule, “Don’t lose money. If you underperform in an up market it means you didn’t take enough risk – and I can live with that – but if you’re losing money it means you’re wrong, and the two things I hate the most are losing money and being wrong.”

In 2006, Geof joined Signature from Manulife Financial, where he was also a portfolio manager. Since he started, the

high-yield corporate bond portfolio – which makes up part of the Signature Corporate Bond, Signature High Income, Signature Diversifi ed Yield and Signature Income & Growth funds – has grown to $5 billion from $1.2 billion. Signature has one of the largest high-yield portfolios in Canada.

As Geof explains, “Ten years ago, high-yield bonds would have been considered a niche asset class – they still had the stigma of the high-fl ying 1980s and investors were skeptical. Since then, the high-yield bond market has grown dramatically and matured. I think Canadian advisors and investors are gradually educating themselves and embracing high yield because they realize the benefi ts.”

Spotlight on Geof Marshall

6 W I N T E R 2 0 1 2 E A R L Y E D I T I O N P E R S P E C T I V E A S A T D E C E M B E R 3 1 , 2 0 1 1

High-yield bonds have historically been slightly negatively correlated to both short and long-term U.S. interest rates and highly correlated to stocks. Investors have received about 90% of the return of equities with 45% of the volatility. Since 1980, the Sharpe ratio for high yield has been double that of equities – which means that it is a more effi cient asset class.

“In the past,” Geof says, “high yield has been seen as an asset class to trade or a place to wait while equity markets recover, but the Sharpe ratio suggests it’s actually more of a core portfolio strategy. For example, if you have a portfolio that is 60% stocks and 40% investment-grade bonds, and take 5% from the equity portion and 5% from the fi xed-income and allocate it to high-yield bonds, it will lessen the portfolio’s exposure to both interest rate risk and some equity volatility.”

According to Geof, high-yield bonds provide investors with the best of both worlds. “As we all know, interest rates have been at historical lows for some time. We’ve had a 30-year bull market in interest rates, but there’s going to be a time when interest rates start rising and investors start experiencing negative returns on bonds. That’s when they are going to want something that is levered to economic growth and trades on a price basis, like the high-yield bonds, not on a spread basis, like investment-grade bonds.”

As with equities, individual fundamental security analysis is crucial in the high-yield bond sector. In addition to the dedicated high-yield team – which includes Kevin McSweeney and Brad Benson – Geof draws on the expertise of the entire Signature lineup of portfolio managers and analysts, including a team of global equity sector specialists, other income asset class specialists and global strategists. In addition, his default forecast, which is one of the primary drivers of high-yield returns, is based on Signature’s macro view of the economy.

Describing Signature’s approach to high yield, Geof has a motto: “Lend like a banker, position like a portfolio manager and execute like a trader.”

“Lend like a banker” means doing intense and ongoing due diligence on the issuers, management teams, sectors, the company’s products and their competitive advantages on the assumption that if trading liquidity is lost, Signature would be comfortable holding the bond until maturity.

“Position like a portfolio manager” means incorporating the Signature macro view on rates, sectors, and commodities, and working with the Signature team to be in right names and sectors at the correct time.

“Execute like a trader” means paying attention to the trading data and the technical indicators. Geof says, “In a market where one point bid/ask spreads are the norm, having the sell-side traders on our side helps ensure the best execution which can really drive performance.

“Altogether, that means focusing on the four Cs of credit investing – capacity to repay, character of management and the equity holders, covenants and collateral.”

On the risk management side, Geof says, “Liquidity and credit risk are the two most important factors in assessing a holding. Liquidity is a real risk because high yield is not always the most liquid asset class. That’s one of the reasons we have higher weights in our higher-quality names and smaller weights in riskier names.”

Credit risk is the primary risk that Geof is managing. “Generally, the bonds you avoid are more important than the positions in your portfolio. You win big by not owning the companies that default. In high yield, the risk/return profi le is asymmetrical, so it’s much easier to lose 100 cents on the dollar than it is to double your money.”

Spotlight Geof Marshall

“ In the past, high yield has been seen as an asset class to trade or a place to wait while equity markets recover, but the Sharpe ratio suggests it’s actually more of a core portfolio strategy.”

“ Generally, the bonds you avoid are more important than the positions in your portfolio. You win big by not owning the companies that default.”

W I N T E R 2 0 1 2 E A R L Y E D I T I O N P E R S P E C T I V E A S A T D E C E M B E R 3 1 , 2 0 1 1 7

Spotlight Geof Marshall

Historically, the default rate for the market has averaged 4%, but the Signature high-yield portfolio has experienced rates much lower than that.

Unlike other bonds, duration is less important because it’s not an asset class that has a positive correlation to rates. Also, high-yield bonds have a much shorter duration than investment-grade bonds and many are called early, thereby offering less sensitively to interest rates.

Signature High Yield Bond is currently fully invested in high-yield bonds, but the mandate is fl exible enough to allow it to invest in U.S. Treasuries and Government of Canada bonds when there is a need to be defensive and secured leveraged loans when interest rates are rising. The average credit quality of the fund is BB low, as it is for the high-yield holdings in other Signature income funds. In total, there are about 150 holdings in the portfolio, representing 125 companies, but Geof says that will grow over time.

The fund is 60% invested in the U.S. because at US$1 trillion, it’s the largest high-yield market in the world. In comparison, the Canadian market is about C$7 billion, but expected to grow by C$3-$5 billion per year over the next fi ve years. Canadian holdings are 28%. While Geof has 5% invested in Europe, he says the high-yield market isn’t very developed. The remainder of the fund is invested in Australia, Mexico and Brazil. Nearly all of the holdings are in denominated in U.S. dollars and the fund is managed with active currency hedging.

The monthly payout of the trust version of the fund is 5.5 cents per unit for an annual targeted yield of 6.6%. Since there is a forward contract on the fund, distributions are classifi ed as tax-effi cient capital gains or return of capital.

“Currently,” he says, “the high-yield market is fairly valued. It’s priced at 95¢ on the dollar and yielding 8.6%. If we go into recession in 2012, which is unlikely, I don’t think high-yield default rates will spike dramatically. The default rate is about 2% now, but it could rise to 3%-5% if the economy slows. Historically, during recessions it has been 8% or higher.”

“Another factor is that high yield can perform well on a relative basis in a low growth, low interest rate environment, which is where the economy is likely to be over the next fi ve years. Below that, defaults become a problem and above that you probably want to own equities.”

Geof says the biggest benefi t of the fund is diversifi cation. “This is an asset class you can’t do yourself. With high-yield bonds, you need to own a diversifi ed portfolio, and actively manage the liquidity and credit risks and currency. Signature High Yield Bond gives you all that – and you also benefi t from the expertise of the Signature team.”

“ High yield can perform well on a relative basis in a low growth, low interest rate environment”

8 W I N T E R 2 0 1 2 E A R L Y E D I T I O N P E R S P E C T I V E A S A T D E C E M B E R 3 1 , 2 0 1 1

Fact sheet

Cambridge Income Fund

Objective: To achieve tax-effi cient returns through exposure to a portfolio of fi xed-income and high-yielding equity securities throughout the world.

Portfolio advisor: Cambridge Advisors

Lead manager: Robert Swanson, Principal and Vice-President

Bob has an investment career spanning 27 years, with extensive experience in managing Canadian and global equity, income and balanced portfolios. His experience and expertise encompasses asset allocation, portfolio construction and risk management. At his previous fi rm, he was lead portfolio manager of several mutual funds with combined assets under management exceeding $20 billion. In 2010 and 2011, he was lead manager of funds that won an impressive seven Lipper Fund Awards, which recognize funds that have excelled in delivering consistently strong risk-adjusted performance, relative to peers.

Main benefi ts: ■ Provides a stable source of income with low volatility and downside protection.

■ Equity portion is invested in Canadian and global income-producing equities, such as common and preferred shares, real estate investment trusts (REITs) and royalty trusts.

■ Income portion is invested in Canadian and global investment-grade, high-yield and convertible bonds.

■ Active currency hedging to reduce volatility. Suitability: Suitable for investors who are seeking an income, can invest for

the medium term and can tolerate low to medium risk.

Cambridge Income Fund provides

a regular, sustainable tax-efficient

income stream by investing in

a diversified portfolio of fixed-

income and high-yielding equity

securities, such as common and

preferred shares, real estate

investment trusts (REITs), royalty

trusts and other high-yielding

investments.

Robert SwansonPrincipal and Vice-President

W I N T E R 2 0 1 2 E A R L Y E D I T I O N P E R S P E C T I V E A S A T D E C E M B E R 3 1 , 2 0 1 1 9

Fact sheet

Target annual distribution: 3.6%

Class A Class F Class O

ISC DSC LL ISC ISC

Cambridge Income Corporate Class

2261 3261 1261 4261 18131

T5 161T5 261T5 361T5 461T5 18731

T8 661T8 761T8 861T8 961T8 18431

US$ 2661 3661 1661 4661 19131

Cambridge Income Fund635 885 1235 4235 18181

US$ 637 887 1637 4637 –

Fund codes (CIG)

Target asset allocation

ISC DSC LL

Commissions Class A 0-5.00% 5.00% 2.00%

Annual trailer fees Class A up to 1.00% up to 0.50% fi rst 7 yrs. 1.00% thereafter

up to 0.50% fi rst 3 yrs. 1.00% thereafter

Management fees Class A: 1.90% Class F: 0.90%

Infrastructure/utilities

High-yielding common equity

High-yield bonds*

Investment-grade bonds*

Preferred shares

REITs

*includes convertible bonds

1 0 W I N T E R 2 0 1 2 E A R L Y E D I T I O N P E R S P E C T I V E A S A T D E C E M B E R 3 1 , 2 0 1 1

Fact sheet

Signature High Yield Bond Fund

Objective: To obtain income and capital appreciation through exposure to high-yield corporate bonds and other income-producing securities throughout the world.

Portfolio advisor: Signature Global Advisors

Lead manager: Geof Marshall, Vice-President and Portfolio Manager

Geof leads a team responsible for the high-yield bond, convertible bond and leveraged loan assets in all Signature income portfolios, including Signature Diversifi ed Yield Fund, Signature High Income Fund, Signature Corporate Bond Fund and Signature Income & Growth Fund. As co-manager of Signature High Income Fund, Geof has been the recipient of three Canadian Investment Awards and three Lipper Awards. He has over 14 years of experience analyzing, managing and trading high-yield bonds.

Main benefi ts: ■ Enhanced yield compared to traditional income investments.

■ Tax-effi cient monthly distribution in the form of capital gains or return of capital.

■ Exposure to a diversifi ed portfolio of domestic and global high- yield bonds, rated BBB or below.

■ Diversifi cation by sector.

■ Management expertise of award-winning Signature Global Advisors, one of the largest investors in high-yield securities in Canada.

■ Active currency hedging.

Suitability: Suitable for investors seeking an income, who can invest for the medium term and tolerate low to medium risk.

Signature High Yield Bond

Fund provides income and

capital growth by investing in

a diversified portfolio of global

high-yield corporate bonds

and other income-producing

securities, such as convertible

bonds and leveraged loans.

Geof MarshallVice-President and Portfolio Manager

W I N T E R 2 0 1 2 E A R L Y E D I T I O N P E R S P E C T I V E A S A T D E C E M B E R 3 1 , 2 0 1 1 1 1

Target annual distribution: 6.6%

Class A Class F Class I

ISC DSC LL ISC ISC

Signature High Yield Bond Corporate Class

2262 3262 1262 4262 –

T5 162T5 262T5 362T5 462T5 –

T8 662T8 762T8 862T8 962T8 –

US$ 2662 3662 1662 4662 –

Signature High Yield Bond Fund634 884 1234 4334 5334

US$ 627 877 1627 4627 5627

Fund codes (CIG)

Target asset allocation

ISC DSC LL

Commissions Class A 0-5.00% 5.00% 2.00%

Annual trailer fees Class A up to 0.75% up to 0.30% fi rst 7 years0.75% thereafter

up to 0.30% fi rst 3 yrs. 0.75% thereafter

Management fees Class A: 1.70% Class F: 0.85%

Europe

AustraliaMexicoBrazil

Canada

United States

Fact sheet

1 2 W I N T E R 2 0 1 2 E A R L Y E D I T I O N P E R S P E C T I V E A S A T D E C E M B E R 3 1 , 2 0 1 1

Signature Market Roundup

Market RoundupGlobal outlook

Eric BushellSenior Vice-President,Portfolio Managementand Chief Investment Offi cer

My focus in 2012 will remain on funding and refi nancing risks.

The extreme overhaul of the fi nancial system is triggering dislocations and obstructions in the fl ow of capital through critical global funding channels. Banks and debt markets matter – and they are not functioning properly today.

Cross-border bank lending is shrinking, as are cross-border credit markets. Why is this?

Pressure on European Union banks to shrink their balance sheets has led them to exit multiple international markets in order to preserve the core. This reversal of international loan growth is a global pattern as governments re-appraise the contingent liability risks embedded in their deposit insurance guarantees. Loan losses abroad could force rescues by taxpayers, as it did in Ireland. No fi nance minister can run such a risk. Hence the decree – “Renationalize the loan book.”

Apart from banks, credit markets are exhibiting similar behaviour. Global companies that have historically accessed funding in Australia through Kangaroo bonds, or in Japan through Samurai bonds are fi nding less local appetite. A trend toward home bias has arisen as bond investors re-assess the risks. The U.S. debt market is the linchpin. If U.S. dollar debt markets begin to ration credit availability by geography, or rating bucket, borrowers with refunding needs may fi nd themselves without a chair when the music stops. All fi nancial markets will take a cue from this development.

Interest rates

James DutkiewiczVice-President,Portfolio Managementand Portfolio Manager

The story on global government bond markets remained unchanged in the fourth quarter. The market is ruthlessly distinguishing between viable credit-worthy nations and, to varying degrees, all the rest. The transition that’s occurring in First World countries as they shift away from a society fi nanced on debt is proving to be stressful. The days of ever increasing leverage across the private and public sector are over. This is having, and will continue to have, an enormous impact on the structure of the global economy.

Bond yields in North America stayed depressed for most of the second half of 2011. Nominal interest rates are still well below current rates of infl ation. This is a hefty cost for safety and liquidity as it implies an erosion of purchasing power over time. But it also represents a signifi cant savings to heavily indebted borrowers such as the U.S. and U.K. governments. Various forms of quantitative easing by central banks continue to exert downward pressure on yields.

Rating agencies have put all of Europe on negative watch and downgrades seem likely. This was after the European heads of state failed to deliver enough progress toward a tighter fi scal compact between the Eurozone nations. Spreads of bonds of AAA nations such as Germany, France and Austria have stabilized, but are at historically wide levels. Refi nancing rates for Italy and Spain have been extremely volatile and the European Central Bank’s open market purchases of these countries’ bonds have done little to ease apprehensions in the private sector.

Signature Market Roundup

W I N T E R 2 0 1 2 E A R L Y E D I T I O N P E R S P E C T I V E A S A T D E C E M B E R 3 1 , 2 0 1 1 1 3

Global outlook

Drummond BrodeurVice-President,Portfolio Managementand Global Strategist

Following a highly volatile 2011 in which markets were driven by macroeconomic events, our expectation for 2012 is for a continuation of the trends we have been navigating since 2009. The crash of 2008 marked the end of a 30-year cycle driven by falling interest rates, increased globalization, deregulation and leverage in a world of U.S.-dominated political and economic stability. Signifi cant global economic imbalances in competitiveness between countries led to unprecedented buildups in current account defi cits in the consuming countries – U.S. and peripheral Europe – and massive pools of savings in the current account surplus countries – China, Germany, and some emerging markets. Many of these trends are now unwinding. Market volatility and ongoing political and social crises are symptoms of these imbalances. Global rebalancing, deleveraging, the rise of emerging markets and the demise of the U.S. middle class are interrelated and refl ective of the rebalancing that must occur. The economic rebalancing, along with the required diffi cult political decisions, will take months and years to play out. This volatility offers opportunities for portfolio managers to add value and protect capital through more active tactical asset allocation. Company fundamentals and valuations remain attractive in absolute and relative terms, compared to other asset classes such as government bonds, which trade close to record highs.

The year will likely be characterized by ongoing political realignment in Europe as the European Central Bank looks for clearer commitments from sovereign governments to restructure their fi scal situation before becoming more explicit in loosening policy. If the ECB stepped in and alleviated the

current sovereign debt crisis, the political will to restructure would be lost and the problems deferred to another crisis in the future. More of a worry in Europe is the ongoing policy-induced recapitalization of the banking sector that is forcing a credit crunch and virtually guarantying a recession. It is also threatening a global contagion through interconnected global credit channels. This is our key worry, but we continue to believe that unlike 2008, policymakers are well aware of the risks and will act to mitigate any escalation.

Within the U.S., 2012 will be a year of an ongoing economic improvement which will be favorable for equities, offset by volatile sentiment from the paralyzed and dysfunctional political process. With 2012 an election year, nothing can be expected out of Washington before 2013.

In China, the two-year policy tightening to slow the economy has begun to bear fruit. The economy and infl ation are both slowing and policymakers have started to loosen as they shift their focus to supporting growth. We are in the camp expecting a soft landing as China retains signifi cant conventional policy tools. At the end of the day, increasing consumption and reducing savings is easier than reducing spending to pay down debt and deleveraging. We expect China to continue to tighten on the property side, a trend that will continue to haunt commodity markets.

For investors, the rules are changing. They can either recognize the change and adapt, or fail. At Signature, we focus on trying to understand the evolving investment landscape and the implications for our investors.

1 4 W I N T E R 2 0 1 2 E A R L Y E D I T I O N P E R S P E C T I V E A S A T D E C E M B E R 3 1 , 2 0 1 1

Signature Market Roundup

Emerging markets

Matthew StraussVice-President, Portfolio Management, Portfolio Managerand Global Strategist

Emerging market equities struggled to sustain rallies during the fi rst half of 2011 due to tightening monetary policy across many economies. The second part of the year, especially the third quarter, saw equities declining sharply as European debt concerns spilled over into a global fl ight to quality, and away from riskier and perceived riskier assets.

Emerging market equities underperformed the developed market in U.S. dollar terms, despite stronger economic fundamentals than the U.S. and Europe. March and October 2011 were the noteworthy exceptions and the latter could well be a curtain-raiser for 2012, if some sense of stability returns to global markets. European developments will be pivotal in determining the pace and timing of this expected development, although the importance of policy decisions in emerging markets must not be underestimated. On the downside, if the European problems and deleveraging cycle continue to adversely affect global funding markets, emerging market equities will struggle, particularly in countries that run current account and government defi cits. We believe the countries most at risk are India, Turkey and South Africa. Brazil might also fall into this category if the global funding situation deteriorates dramatically.

Acknowledging the global and European risks, we are positive on emerging markets and look for opportunities during the early part of 2012 to deploy cash – if and when the macro and fi nancial pictures improve. We continue to favour China and Brazil over emerging Europe. Also, we prefer local plays, such as consumer and health care, over pure export exposures.

Resources

Scott ValiVice-President,Portfolio Managementand Portfolio Manager

North American natural gas prices continue to be depressed as increasing supplies are met by lacklustre demand. The continued drilling of wells in North America saw a supply increase of 6% year-over-year to the end of November. The industry continues to shift to liquid-rich natural gas plays away from dry gas reservoirs. Wells with higher liquid contents improve the well returns as the production captures some oil pricing. (Prices of liquids such as condensate, propane, butane and ethane are tied more closely to oil.) The higher the liquid content, the better the pricing realized by the producer. Liquid-rich wells are allowing producers to realize the equivalent gas price of US$5.50 per million cubic feet (mcf) and higher, making these wells highly economic.

In addition, improvements in drilling technology are starting to lower the cost of drilling many of these unconventional reservoirs. Natural gas prices are likely to remain below US$5 dollar per mcf for the foreseeable future. In the longer term, increased demand from power generation, chemical producers and exports in the form of liquefi ed natural gas will help balance the supply-demand equation. However, these are still in the early planning phases and will not make a material difference to the market in the next fi ve to 10 years.

This cheap source of energy will be advantageous to businesses that are able to capitalize on its use over the next several years. On the whole, it benefi ts the North American economy.

Signature Market Roundup

W I N T E R 2 0 1 2 E A R L Y E D I T I O N P E R S P E C T I V E A S A T D E C E M B E R 3 1 , 2 0 1 1 1 5

Consumer products

Stephane ChampagneVice-President,Portfolio Managementand Portfolio Manager

Led by strong Black Friday sales in November, U.S. consumer activity was resilient during the fourth quarter. ShopperTrak indicated consumers spent $11.4 billion on Black Friday, up 7% from last year and the biggest year-over-year increase since 2007. The National Retail Federation indicated that Black Friday weekend sales were up 16.4% to $52 billion, and the total number of shoppers who visited stores and websites was up 6.7% to 226.8 million. Online shopping was strong as well. ComScore reported online spending increased 18% on U.S. Thanksgiving weekend to $479 million and Black Friday sales increased 26% to $816 million. We think part of the reason for the strong start to the holiday selling season may be that more retailers are opening earlier and there were more aggressive promotions. We note that sales performance for apparel retailers was mixed during Thanksgiving because weather was warmer than it was last year.

U.S. food infl ation peaked in November and was one of the negative stories. During the fourth quarter, the S&P 500 Index underperformed the consumer discretionary index by 150 basis points, but outperformed the consumer staples index by 180 bps. Finally, the discretionary index outperformed staples index by 325 bps during the period. After bad retail sales numbers in October, U.S. retail sales gained momentum in November. Also, in November, the discretionary index was helped by better Black Friday sales and a decline of the unemployment rate from 9.0% to 8.6%. Softline retailers have been mixed mostly due to warm weather, hardline sales gained momentum due to an increase in consumer confi dence, a lower unemployment rate and a slight improvement in real estate activities.

Overall, discussion over the next few quarters will be centered on the effect of the European austerity program on GDP growth and China’s potential soft landing. We remain confi dent in our holdings due their cheap valuations, high free cash fl ow generation, high-quality balance sheets, and high returns to shareholders via dividends, buybacks and M&A. For the fi rst half of 2012, we are taking a conservative approach to our consumer portfolio, which should help temper the market volatility. We will take advantage of the opportunities when there is an equity market pullback. For the longer term, we continue to view global brands as the preferred way to gain exposure to the expansion of the middle class in the emerging markets.

1 6 W I N T E R 2 0 1 2 E A R L Y E D I T I O N P E R S P E C T I V E A S A T D E C E M B E R 3 1 , 2 0 1 1

Signature Market Roundup

Health care

Rui CardosoVice-President,Portfolio Managementand Portfolio Manager

Health care fi nished the year on a high note, relative to the broader markets, as the defensive rotation that began in the third quarter accelerated toward year-end. Our outlook remains positive with a bias to sub-sectors, like pharmaceuticals, that have less leverage to developed world health care reform and austerity measures that impact price or demand. We believe Big Pharma, which represents approximately 65% of the health care universe, will have a turnaround in fundamentals that will lead to a re-rating of the group to levels that better refl ect its high profi tability and stable growth potential once most of the companies exit their “patent cliff” periods. For years, pharmas have been preparing for the cliff in different ways: major acquisitions of companies with no cliffs to dilute the overall impact, such as Pfi zer’s acquisition of Wyeth; major cost rationalizations; and a revamping of drug development pipelines. Pharma stocks are cheap on estimates that, in our view, appear too low. We see room for further multiple expansion as pipelines start to pass through the U.S. Food and Drug Administration approval process. In a sector with high dividend yields and clean balance sheets, we are paid to wait.

We remain cautious on health care services in developed markets – hospitals, insurers and distributors – and medical device companies, as they have the greatest leverage to austerity measures. However, we continue to view health care services as the preferred way to play the expansion of health care coverage to middle classes in emerging markets.

Industrials

Joe D’AngeloVice-President,Portfolio Managementand Portfolio Manager

It was a volatile year for industrial products stocks as future growth expectations were reduced throughout the year. Despite that, it was a good year operationally for most companies as they reported solid revenue growth and margin expansion. Balance sheets are very strong and managements are using their free cash fl ow to reduce debt, grow dividends and buyback shares.

Areas of capital expenditure (capex) strength continue to be in energy and mining end markets, as well as automation and energy effi ciency. Industrial distributors have also benefi ted as they take market share from smaller, weaker competitors and as customers continue to replace worn- out parts. Construction markets remain globally depressed. Government defi cits in mature economies continue to hamper infrastructure spending, while infl ationary pressures in emerging markets have dramatically reduced growth rates. Given the economic uncertainty, inventory destocking was gradual and steady throughout the year as companies tried to be more conservative. However, they are cautiously optimistic about growth heading into the new year and are not planning any drastic reductions in operations at this point.

Valuations in the sector appear to be reasonable and seem to be factoring in a slower-growth environment, but an elevated risk of recession still poses a downside risk for these stocks.

Signature Market Roundup

W I N T E R 2 0 1 2 E A R L Y E D I T I O N P E R S P E C T I V E A S A T D E C E M B E R 3 1 , 2 0 1 1 1 7

Technology & telecommunications

Malcolm WhiteVice-President,Portfolio Managementand Portfolio Manager

Despite a tough macro environment, information technology has been a relative outperformer in the broader market as investors look to sectors with strong balance sheets and secular growth. However, technology is not entirely immune from global conditions as we are starting to see early signs that growth rates are moderating in the short term due to weakness in Europe. Flooding in Thailand had also damaged parts of the technology sector supply chain, leading to supply shortages and higher prices in certain segments.

The telecommunication sector continues to be a good place for investors seeking shelter from stormy markets. High dividend yields provide valuation support and wireless data growth continues on a global basis as customers upgrade to more advanced phones. Those wanting more consolidation within the telecommunications sector have been disappointed with the recent actions of the regulatory authorities in the U.S., who pressured AT&T to scrap its proposed takeover of T-Mobile USA.

Foreign exchange

James DutkiewiczVice-President,Portfolio Managementand Portfolio Manager

Currency cross rates continue to bounce around the well-travelled path of “risk on/risk off.” As forecasts for weaker global growth gather momentum, higher-beta currencies with signifi cant exposure to commodities, such as Canada and Australia, have lost value compared to the U.S. dollar. Across most commodities, prices continue to reprice in the face of decreased demand and a strengthening U.S. dollar. During the fourth quarter, most emerging market currencies steadied, although Eastern European currencies have failed to fi nd a fl oor compared to the U.S. dollar. These crosses tend to act as high-beta plays on the euro, which hit year-to-date lows compared to the U.S. dollar, in December.

The U.S. dollar rallied signifi cantly toward year-end. It shrugged off the failure of the Congressional budget supercommittee to agree to signifi cant budget cuts. The focus of the foreign exchange market is still squarely on the wrangling in Europe. The more discourse there is in Europe, the more long-term investors reduce their exposure. Somewhat paradoxically, the more aggressive the ECB is at loosening monetary policy, both conventional and unconventional, the more stable the euro will become because the threat of a collapse is reduced.

1 8 W I N T E R 2 0 1 2 E A R L Y E D I T I O N P E R S P E C T I V E A S A T D E C E M B E R 3 1 , 2 0 1 1

Signature Market Roundup

High-yield bonds

Geof MarshallVice-President,Portfolio Managementand Portfolio Manager

Despite the positive return in 2011, the high-yield market is now cheaper than it was 12 months ago by about 200 basis points. So, what’s in store for 2012?

Much has been written on Europe and its probable outcomes, but it is important to qualify that the “risk-on/risk-off” trade will likely be the prime driver of high-yield bond returns again in 2012. It is always tempting to look for precedent. A decade ago, capital markets were marked by low interest rates, persistent and elevated equity market volatility and uncertain geopolitical risks. While the average spread level entering 2002 was similar to now, yields were higher and prices much lower as the market was still recovering from recession and terrorism in 2001 and the debt-fi nanced telecom bubble. These factors, and the high-profi le bankruptcies – Enron, Worldcom and Dynegy – that followed in 2002 make this comparison imperfect.

We expect defaults in 2012 to climb slightly, but remain relatively subdued. In the low-growth, low interest rate environment that should continue into 2012, we are inclined to think high-yield bonds can generate “coupon-like” or high single-digit returns. Surprisingly, the high-yield bond market has never had a year with a return in the 7% to 10% range. Nonetheless, if this forecast proves incorrect and the high-yield return is lower, stocks probably will do much worse – like 2002 and 2011. If, however, the forecast proves too conservative, and we hope it does, stocks may struggle to do better than high yield without a growth surprise to the upside, such as a recovery in the U.S. residential housing market and by extension, the banking sector, or a resolution in Europe – like 2010, 2003 and 2004.

Preferred shares

John Shaw Vice-President, Portfolio Management,Portfolio Manager

The outlook for the Canadian preferred share market remains positive due to continued strong demand from both retail and institutional investors searching for stable investments. Additionally, I believe the bank preferred share market will be shrinking over the next three years, while new issuance will be manageable.

In these uncertain times investors are looking for decent but stable returns and are fi nding these in the Canadian preferred share market. Returns for 2011 were in the 6% to 7% range, with the bank perpetual preferred shares once again being the strongest contributors.

The market has seen a number of new issuers in 2011 and we expect this to remain the case in 2012. The new variety is great for the market, but credit quality or structures have been weaker than the preferred shares being redeemed. Investors must be wary of the new names coming to market.

W I N T E R 2 0 1 2 E A R L Y E D I T I O N P E R S P E C T I V E A S A T D E C E M B E R 3 1 , 2 0 1 1 1 9

at the Canadian Investment AwardsCI a winner

CI Investments was selected as the recipient of two 2011 Morningstar Canadian Investment Awards, which recognize superior investment products and services. Over the past decade, CI and its portfolio managers have won 33 Canadian Investment Awards.

Portfolio Series was named Best Fund of Funds. Portfolio Series is a managed solution that also offers an IPQ, IPS and enhanced reporting, along with a strong track record. The Portfolio Series funds hold over $4 billion in assets and are managed by CI Investment Consulting.

Signature High Income Fund was chosen Best Global Balanced Fund. The fund, managed by the Signature Global Advisors team, is a three-time Canadian Investment Award winner and a three-time winner of Lipper Fund Awards. It invests in a diversifi ed portfolio of high-yielding securities.

For more information see: www.ci.com

CI Investments offers a comprehensive selection of income funds to meet investor needs. These range from traditional bond funds to diversified income funds that offer enhanced yields by investing in higher-yielding asset classes, such as high-yield corporate bonds, infrastructure, REITs and other real estate-related securities. To assist you in choosing the appropriate funds for your clients, we present this monthly communication featuring highlights of seven key income offerings. This piece will be e-mailed to you on a monthly basis. Please contact your CI sales team to ensure delivery. We hope you will find it useful and informative in discussions with your clients.

CI Income Opportunities – Fund Highlights

Income Opportunities

2 0 W I N T E R 2 0 1 2 E A R L Y E D I T I O N P E R S P E C T I V E A S A T D E C E M B E R 3 1 , 2 0 1 1

W I N T E R 2 0 1 2 E A R L Y E D I T I O N P E R S P E C T I V E A S A T D E C E M B E R 3 1 , 2 0 1 1 2 1

Income Opportunitiesas at November 30, 2011 (Class A)

SignatureDiversifi ed

Yield

Signature High

Income

Signature Corporate

Bond

Signature Income & Growth

PS Income

Select Income

Advantage Managed

Signature Canadian

Bond

CI Income Advantage

Monthly per unit distribution $0.05 $0.07 Variable $0.025 $0.04 N/A Variable $0.035

Annualized distribution payout 6.2% 6.3% Variable 6.8% 4.4% N/A Variable 4.4%

Portfolio yield (approx.) 6.6% 6.0% 7.3% 3.7% 4.6% 4.6% 3.2% 4.6%

Dividend characteristicsROC, income

& capital gains

ROC, income & capital

gainsIncome Income &

capital gainsIncome &

capital gains N/A Income ROC & capital gains

Current asset mix*

Cash 15% 17% 8% 17% 12% 10% 3% 10%

Government and investment grade corporate bonds 5% 6% 32% 15% 41% 50% 97% 50%

High-yield bonds 46% 35% 60% 17% 18% 21% 0% 21%

REITs, trusts, & equities 34% 42% 0% 51% 29% 19% 0% 19%

Duration

In years (bond portion) 3.2 2.8 4.1 3.4 4.5 5.1 6.2 5.1

Credit quality

Average credit quality BBB BBB BB+ A A A AA- A

% under Single B 5% 4% 3% 2% 1% 1% 0% 1%

Currency exposure*‡

CAD 73% 89% 90% 81% 66% 67% 99% 67%

USD 15% 6% 10% 11% 13% 13% 1% 13%

EUR 2% 1% 0% 1% 7% 6% 0% 6%

Other 10% 4% 0% 7% 14% 14% 0% 14%

Management fees

Class A 1.90% 1.25% 1.70% 2.00% 1.65% 1.65% 1.35% 1.50%

Class F 0.90% 0.75% 0.85% 1.00% 0.90% 0.90% 0.85% 0.75%

PMA ($250K level)† 0.85% 0.85% 0.55% 0.85% 0.85% 0.85% 0.55% N/A

PMA ($500K level)† 0.75% 0.75% 0.53% 0.75% 0.75% 0.75% 0.53% N/A

PMA ($1M level)† 0.60% 0.60% 0.45% 0.60% 0.60% 0.60% 0.45% N/A

Trailer fees

Class A (ISC/DSC) 1.00%/0.50% 0.50%/0.25% 0.50%/0.25% 1.00%/0.50% 0.50%/0.25% 1.00%/0.50% 0.50%/0.25% 0.75%/0.30%

Fund codes

Trust Class A FE 619 686 9010 6116 7740 N/A 837 2339

Trust Class A DSC 819 786 9060 6166 7745 N/A 847 3339

Trust Class A LL 1619 1786 1150 1166 1745 N/A 1847 1339

Corp Class FE 2319 2304 2308 2309 N/A 2265 2303 N/A

Corp Class DSC 3319 3304 3308 3309 N/A 3265 3303 N/A

Corp Class LL 1319 1304 1308 1309 N/A 1465 1303 N/A

Source: CI Investment Consulting, RBC Dexia, Wilshire Atlas, Wilshire Axiom* Aggregate exposure may not equal 100% due to rounding.† Includes both management and administration fees.‡ Currency exposure includes the effect of hedging.

Balanced Opportunities

After the volatility of the past decade, many of your clients may be hesitant about investing in equity markets. Balanced funds can provide a solution that combines the safety of income investments while maintaining exposure to the growth potential of equities.

CI offers some of the best balanced funds in Canada.

Balanced opportunities for safety and growth

2 2 W I N T E R 2 0 1 2 E A R L Y E D I T I O N P E R S P E C T I V E A S A T D E C E M B E R 3 1 , 2 0 1 1

W I N T E R 2 0 1 2 E A R L Y E D I T I O N P E R S P E C T I V E A S A T D E C E M B E R 3 1 , 2 0 1 1 2 3

Balanced Opportunities

Harbour Growth & Income

To obtain long-term total return through a prudent balance of income and capital appreciation. Invests primarily in Canadian equity and equity-related securities of mid- to large-capitalization companies and fi xed-income securities.

Harbour Advisors

• Concentrated equity portfolio of approximately 40 companies.

• Long-term focus – average equity holding period three to fi ve years.

• Large equity component with global exposure to large multinational fi rms.

• Canadian Investment Award winner, 2006, 2008.

Suitable for very conservative investors who are seeking equity exposure.

F/E DSCClass A 691 891Corporate Class 2310 3310T-Class (5%) 130T5 230T5T-Class (8%) 630T8 730T8

SunWise Elite Plus

Signature Canadian Balanced

To achieve an attractive total return, consisting of income and capital gains. Invests in a mix of Canadian equity and equity-related securities and fi xed-income securities.

Signature Global Advisors

• Prudent allocation to government and investment-grade corporate bonds.

• Signifi cant global equity exposure.• Canadian Investment Award winner,

2007, 2009.

Suitable for investors seeking a traditional balanced fund with active management and high-quality investments.

F/E DSCClass A 685 785

Signature Income & Growth

To provide a steady fl ow of current income while preserving capital by investing in a diversifi ed portfolio of securities composed mainly of equity, equity-related and fi xed-income securities of Canadian issuers.

Signature Global Advisors

• Income-oriented balanced fund with a monthly distribution at a targeted annual yield of 5%.

• Diversifi ed income sources.• Wide diversifi cation by asset class and

within each asset class for reduced risk.• Signifi cant global exposure.• Canadian Investment Award winner,

2008.

Suitable for investors seeking steady income, plus potential growth through exposure to equity investments.

F/E DSCClass A 6116 6166Corporate Class 2309 3309T-Class (5%) 131T5 231T5T-Class (8%) 631T8 731T8

SunWise Elite Plus

Harbour Growth & Income

To obtain long-term total return through a prudent balance of income and capital appreciation. Invests primarily in Canadian equity and equity-related securities of mid- to large-capitalization companies and fi xed-income securities.

Harbour Advisors

• Concentrated equity portfolio of approximately 40 companies.

• Long-term focus – average equity holding period three to fi ve years.

• Large equity component with global exposure to large multinational fi rms.

• Canadian Investment Award winner, 2006, 2008.

Suitable for conservative investors who are seeking equity exposure.

F/E DSCClass A 691 891Corporate Class 2310 3310T-Class (5%) 130T5 230T5T-Class (8%) 630T8 730T8

SunWise Elite Plus, PIM

Harbour Foreign Growth & Income

To obtain long-term total return through a prudent balance of income and capital appreciation. Invests primarily in equity, equity-related securities, and fi xed-income securities of issuers located throughout the world.

Harbour Advisors

• Concentrated equity portfolio of approximately 40 companies.

• Small allocation to bonds.• Large equity component with global

exposure to large multinational fi rms.

Suitable for investors with a medium risk tolerance that are seeking exposure to large multinational companies operating around the world.

F/E DSCCorporate Class 2306 3306T-Class (5%) 157T5 257T5T-Class (8%) 657T8 757T8

SunWise Essential Series, PIM

Signature Canadian Balanced

To achieve an attractive total return, consisting of income and capital gains. Invests in a mix of Canadian equity and equity-related securities and fi xed-income securities.

Signature Global Advisors

• Prudent allocation to government and investment-grade corporate bonds.

• Signifi cant global equity exposure.• Canadian Investment Award winner,

2007, 2009.

Suitable for investors seeking a traditional balanced fund with active management and high-quality investments.

F/E DSCClass A 685 785

PIM

U.S. equity

International equity

Canadian equityBonds

Cash

U.S. equity International equity

Canadian equity

Investment-grade corporate bonds

Government bonds

Cash

Fund

Objective

Typicalasset allocation

Investment manager

Main benefi ts

Suitability

Fund codes(all funds available in low-load, Class F)

Also available in:

U.S. equity

International equity

Cash

Canadian Equity Bonds

2 4 W I N T E R 2 0 1 2 E A R L Y E D I T I O N P E R S P E C T I V E A S A T D E C E M B E R 3 1 , 2 0 1 1

Balanced Opportunities

Harbour Growth & Income

To obtain long-term total return through a prudent balance of income and capital appreciation. Invests primarily in Canadian equity and equity-related securities of mid- to large-capitalization companies and fi xed-income securities.

Harbour Advisors

• Concentrated equity portfolio of approximately 40 companies.

• Long-term focus – average equity holding period three to fi ve years.

• Large equity component with global exposure to large multinational fi rms.

• Canadian Investment Award winner, 2006, 2008.

Suitable for very conservative investors who are seeking equity exposure.

F/E DSCClass A 691 891Corporate Class 2310 3310T-Class (5%) 130T5 230T5T-Class (8%) 630T8 730T8

SunWise Elite Plus

Signature Canadian Balanced

To achieve an attractive total return, consisting of income and capital gains. Invests in a mix of Canadian equity and equity-related securities and fi xed-income securities.

Signature Global Advisors

• Prudent allocation to government and investment-grade corporate bonds.

• Signifi cant global equity exposure.• Canadian Investment Award winner,

2007, 2009.

Suitable for investors seeking a traditional balanced fund with active management and high-quality investments.

F/E DSCClass A 685 785

Signature Income & Growth

To provide a steady fl ow of current income while preserving capital by investing in a diversifi ed portfolio of securities composed mainly of equity, equity-related and fi xed-income securities of Canadian issuers.

Signature Global Advisors

• Income-oriented balanced fund with a monthly distribution at a targeted annual yield of 5%.

• Diversifi ed income sources.• Wide diversifi cation by asset class and

within each asset class for reduced risk.• Signifi cant global exposure.• Canadian Investment Award winner,

2008.

Suitable for investors seeking steady income, plus potential growth through exposure to equity investments.

F/E DSCClass A 6116 6166Corporate Class 2309 3309T-Class (5%) 131T5 231T5T-Class (8%) 631T8 731T8

SunWise Elite Plus

Signature Income & Growth

To provide a steady fl ow of current income while preserving capital by investing in a diversifi ed portfolio of securities composed mainly of equity, equity-related and fi xed-income securities of Canadian issuers.

Signature Global Advisors

• Income-oriented balanced fund with a monthly distribution at a targeted annual yield of 5%.

• Diversifi ed income sources.• Wide diversifi cation by asset class and

within each asset class for reduced risk.• Signifi cant global exposure.• Canadian Investment Award winner,

2008.

Suitable for investors seeking steady income, plus potential growth through exposure to equity investments.

F/E DSCClass A 6116 6166Corporate Class 2309 3309T-Class (5%) 131T5 231T5T-Class (8%) 631T8 731T8

SunWise Elite Plus, PIM

Signature Global Income & Growth

To generate income and long-term capital growth by investing, directly or indirectly, in a combination of equity and fi xed-income securities of companies located anywhere in the world.

Signature Global Advisors

• Balanced fund with diversifi ed income sources, such as high-yield bonds, REITs and infrastructure.

• Wide diversifi cation by asset class and within each asset class for reduced risk.

Suitable for investors with a medium risk tolerance that are seeking global exposure to both high-yielding income and equity securities.

F/E DSCClass A 2111 3111Corporate Class 2312 3312T-Class (5%) 158T5 258T5T-Class (8%) 658T8 758T8

SunWise Essential Series, PIM

Cambridge Canadian Asset Allocation

To achieve superior total return by investing in a combination of primarily Canadian equity and fi xed-income securities.

Cambridge Advisors

• Primarily blue-chip equity holdings for lower volatility.

• Large Canadian content.• Larger equity content than typical

balanced fund for more potential growth.

Suitable for investors seeking a balanced approach with a higher equity content than other balanced funds.

F/E DSCCorporate Class 2322 3322T-Class (5%) 117T5 217T5T-Class (8%) 617T8 717T8

SunWise Elite Plus, PIM

U.S. equity International equity

Canadian equity

Investment-grade corporate bonds

Government bonds

High-yield corporate bonds

Cash

Fund

Objective

Typicalasset allocation

Investment manager

Main benefi ts

Suitability

Fund codes(all funds available in low-load, Class F)

Also available in:

Canadian equity

CashU.S. equity

International equityU.S. equity

International equity

CashCanadian Equity

Bonds

W I N T E R 2 0 1 2 E A R L Y E D I T I O N P E R S P E C T I V E A S A T D E C E M B E R 3 1 , 2 0 1 1 2 5

Balanced Opportunities

Black Creek Global Balanced

To provide long-term growth by primarily investing, directly or indirectly, in a balanced portfolio of equities, and fi xed-income securities issued by governments, supra-national agencies or corporations anywhere in the world.

Black Creek Investment Management

• Concentrated equity portfolio with 20-25 holdings.

• Fixed-income holdings are global government bonds.

Suitable for investors with a medium risk tolerance that are seeking a traditional balanced fund with concentrated equity holdings.

F/E DSCCorporate Class 2573 3573T-Class (5%) 173T5 273T5T-Class (8%) 673T8 773T8

SunWise Elite Plus, PIM

Portfolio Series Balanced

To provide a balance between income and long-term capital growth while diversifying risk by investing in income and equity funds.

CI Investment Consulting

• Multi-manager with multi-style investments.

• Broad diversifi cation by asset class, geography and market cap.

• Monitored by CI Investment Consulting and rebalanced to target mix.

• Portfolio Series named Best Fund of Funds at 2011 Canadian Investment Awards.

Suitable for investors seeking a widely diversifi ed portfolio in a single investment.

F/E DSCClass A 7710 7715T-Class (5%) 113T5 213T5T-Class (8%) 613T8 713T8

SunWise Elite Plus, PIM

Portfolio Select Series 50i50e

To provide returns from a diversifi ed portfolio split equally between income and equity securities, designed for steady long-term growth.

CI Investment Consulting

• Equal weightings of equities and income.

• Multi-manager with multi-style investments.

• Broad diversifi cation by asset class, geography, market cap, investment manager and style.

• Monitored by CI Investment Consulting and rebalanced to target mix.

Suitable for investors seeking a tax-effi cient diversifi ed portfolio split evenly between income and equities.

F/E DSCCorporate Class 2244 3244T-Class (5%) 104T5 204T5T-Class (8%) 604T8 704T8

PIM

Fund

Objective

Typicalasset allocation

Investment manager

Main benefi ts

Suitability

Fund codes(all funds available in low-load, Class F)

Also available in:

U.S. equity

International equity

Canadian equityIncome

U.S. equity

International equity

Canadian equity

Income

U.S. equity

International equity

Cash

Bonds

2 6 W I N T E R 2 0 1 2 E A R L Y E D I T I O N P E R S P E C T I V E A S A T D E C E M B E R 3 1 , 2 0 1 1

World-class money management

CI Private Investment Management (PIM) combines several key features to provide high net worth investors with an effective

way to manage their assets. Built on a fl exible, competitive platform, PIM investment solutions are designed to enhance client

accounts from a tax, asset allocation and cost perspective.

Competitive pricing

PIM’s comprehensive features and attractive benefi ts are available at a minimum $100,000 per investment mandate.

Additional features such as family account linking and reduced fees start at the $250,000 account level.

Consolidated, simplifi ed account management

Client and family accounts can be linked to create a clear household fi nancial picture, rationalize fees and maximize

tax effi ciency across multiple account types. Consolidated accounts are supported by value-added features including

managed solutions, enhanced reporting, portfolio rebalancing and a proposal tool.

Available on these CI platforms:Available January 2012

www.ci.com/PIM

– changes for 2012CI Investments and Sun Life Financial announce a series of enhancements and changes to SunWise Essential Series, effective January 2012.

Here are the highlights:

Age 55 LWA Election

With SunWise Essential Series Income Class, clients can easily adjust their retirement plans should they need income earlier than age 65.

❙ Under the Age 55 LWA Election, clients can elect to withdraw their Lifetime Withdrawal Amount (LWA) when they, or their spouse, are age 55.

❙ It is available for the One-Life Income Stream at 4% or the Two-Life Income Stream Option at 3.5%.

❙ Once clients have elected the Age 55 LWA Election and start withdrawing their LWA, they are still entitled to make additional deposits, which can increase their LWA.

❙ And similar to other SunWise Essential Series contracts, clients will be entitled to Guaranteed Lifetime Withdrawal Benefi t (GLWB) Resets. However, age tiered withdrawals do not apply.

SunWise Essential Series and CI Private Investment Management

❙ CI Private Investment Management (“PIM”), available in SunWise Essential Series, combines several key features to provide high net worth investors with an effective way to manage their assets now and for future generations.

❙ Built on a fl exible, competitive platform, PIM investment solutions are designed to enhance client accounts from a tax, asset allocation and cost perspective, all backed by the strength of CI Invest-ments’ award winning portfolio management expertise.

❙ PIM’s pricing structure offers competitive man-agement fees that are lower than traditional retail products, allowing account balances to compound at a greater rate. Tiered management fee reduc-tions are applied to larger account balances.

SunWise Essential Series

www.sunwiseessentialseries.com

2 8 W I N T E R 2 0 1 2 E A R L Y E D I T I O N P E R S P E C T I V E A S A T D E C E M B E R 3 1 , 2 0 1 1

Head Office 2 Queen Street East, 20th Floor, Toronto, Ontario M5C 3G7

Client Services: E-1-800-563-5181 F-1-800-668-3528www.ci.com

National AccountsTEL: 416-364-1145 TOLL-FREE: 1-800-268-9374

Peter Glaab Senior Vice-President pglaab@ci.comKarl Siksna Vice-President ksiksna@ci.comLeah Graham Sales Assistant lgraham@ci.com

VancouverTEL: 604-681-3346 TOLL-FREE: 1-800-665-6994

Roy Ratnavel Senior Vice-President rratnavel@ci.comElijah Clare Vice-President eclare@ci.comSean Hirtle Vice-President shirtle@ci.comVincent Nijjar Vice-President vnijjar@ci.comNeil Rawal Vice-President nrawal@ci.comTim Shrigley Vice-President tshrigley@ci.comJim Tsiakos Vice-President jtsiakos@ci.comVictor Young Vice-President vyoung@ci.comColin Green Inside Sales cgreen@ci.comJennifer Sinclair Inside Sales jsinclair@ci.comMichael Ramos Inside Sales mramos@ci.comLaura Anderson Sales Assistant landerson@ci.comJenny Obermeier Sales Assistant jobermeier@ci.comRicki Thal Sales Assistant rthal@ci.com

CalgaryTEL: 403-205-4396 TOLL-FREE: 1-800-776-9027

Roy Ratnavel Senior Vice-President rratnavel@ci.comJodie deMunnik Vice-President jdemunnik@ci.comWayne Grant Vice-President wgrant@ci.comBill Johnstone Vice-President bjohnstone@ci.comChristopher Matugas Vice-President cmatugas@ci.comGlenn Pesclovitch Vice-President gpesclovitch@ci.comJames Sturdy Vice-President jsturdy@ci.comJay Brisley Inside Sales jbrisley@ci.comHassan Chauhan Inside Sales hchauhan@ci.comJonathan Marusiak Inside Sales jmarusiak@ci.comMelissa Ho Sales Assistant mho@ci.comSherry Newman Sales Assistant snewman@ci.comEileen Soby Sales Assistant esoby@ci.com

Montreal TEL: 514-875-0090 TOLL-FREE: 1-800-268-1602

Patrick Lefrançois Senior Vice-President plefrancois@ci.comJacen Campbell Vice-President jcampbell@ci.comJoseph Gagliano Vice-President jgagliano@ci.comJeremy Gould Vice-President jgould@ci.comOlivier Liard Vice-President oliard@ci.comPeter Papamichalopoulos Vice-President ppapamic@ci.comJacques Prévost Vice-President jprevost@ci.comRoberto Katigbak Inside Sales rkatigbak@ci.comLouis-Philippe Proulx Inside Sales lproulx@ci.comDiane Tremblay Inside Sales dtremblay@ci.comCarine Coursol Sales Assistant ccoursol@ci.comMaritza Paredes Sales Assistant mparedes@ci.comNeshat Vafi Sales Assistant nvafi@ci.com

Mike WarusSenior Vice-President

Patrick LefrançoisSenior Vice-President

Roy RatnavelSenior Vice-President

Ontario TEL: 416-364-1145 TOLL-FREE: 1-800-268-9374

Mike Warus Senior Vice-President mwarus@ci.comKevin Bonello Vice-President kbonello@ci.comRon Bowes Vice-President rbowes@ci.comErick Boucher Vice-President eboucher@ci.comJason Capobianco Vice-President jcapobianco@ci.comSean Etherington Vice-President setherington@ci.comJeff Hobson Vice-President jhobson@ci.comRyan Keefe Vice-President rkeefe@ci.comCraig Koenig Vice-President ckoenig@ci.comPierre Lalonde Vice-President plalonde@ci.comAndrew McBain Vice-President amcbain@ci.comPeter Perri Vice-President pperri@ci.comMatthew Rose Vice-President mrose@ci.comNathan Rothwell Vice-President nrothwell@ci.comJennifer Sinopoli Vice-President jsinopoli@ci.comTim Skoubouris Vice-President tskoubouris@ci.comAlex Steele Vice-President asteele@ci.comDamon Sutherland Vice-President dsutherland@ci.comDavid Vigilanti Vice-President dvigilanti@ci.comSharad Appadoo Inside Sales sappadoo@ci.comDean Chong Inside Sales dechong@ci.comSaer Diop Inside Sales sdiop@ci.comPhilip Douglas Inside Sales pdouglas@ci.comAmin Fernandez Inside Sales afernandez@ci.comAnet Gesualdi Inside Sales agesualdi@ci.comGordon Gouinlock Inside Sales ggouinlock@ci.comBobby Greenberg Inside Sales bgreenberg@ci.comPerry Kekropidis Inside Sales pkekropi@ci.comIan Maclean Inside Sales imaclean@ci.comDevendra Maharajh Inside Sales dmaharajh@ci.comReza Manoucheri Inside Sales rmanoucheri@ci.comDave Skillen Inside Sales dskillen@ci.comJay Taylor Inside Sales jtaylor@ci.comRyan Waller Inside Sales rwaller@ci.comCheryl Bemister Sales Assistant cbemister@ci.comTeresa Hasiuk Sales Assistant thasiuk@ci.comMichelle Kang Sales Assistant mkang@ci.comDebra MacPhail Sales Assistant dmacphail@ci.comLindsay Muscat Sales Assistant lmuscat@ci.comKatie Newton Sales Assistant knewton@ci.comAlison Njie Sales Assistant anjie@ci.comGabriella Sokacova Sales Assistant gsokacova@ci.comLisa Zhu Sales Assistant lzhu@ci.com

Halifax TOLL-FREE: 1-800-268-9374 Patrick Lefrançois Senior Vice-President plefrancois@ci.comGordon Baker Vice-President gbaker@ci.comGreg Giffin Vice-President ggiffin@ci.comAndrew Lacas Vice-President alacas@ci.comRichard Belding Inside Sales rbelding@ci.comHeather Kennedy Sales Assistant hkennedy@ci.com

CI Sales Team

All commentaries are published by CI Investments Inc., the manager of all the funds described herein. They are provided as a general source of information and should not be considered personal investment advice or an offer or solicitation to buy or sell securities. Every effort has been made to ensure that the material contained in the commentaries is accurate at the time of publication. However, CI Investments Inc. cannot guarantee their accuracy or completeness and accepts no responsibility for any loss arising from any use of or reliance on the information contained herein.

Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Unless otherwise indicated and except for returns for periods less than one year, the indicated rates of return are the historical annual compounded total returns including changes in security value. All performance data assume reinvestment of all distributions or dividends and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any securityholder that would have reduced returns. Returns are for Class A securities, unless otherwise indicated. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. Mutual fund securities are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer and there can be no assurances that the CI Money Market Funds will maintain its net asset value per security at a constant amount or that the full amount of your investment in these funds will be returned to you.

Sun Life Assurance Company of Canada, a member of the Sun Life Financial group of companies, is the sole issuer of the individual variable annuity contracts providing for investment in SunWise, SunWise Elite and Clarica segregated funds. A description of the key features of the applicable individual variable annuity contract is contained in the SunWise or Clarica Information Folder.

®CI Investments, the CI Investments design, Perspective, Synergy Mutual Funds, Harbour Advisors, Harbour Funds, Cambridge, Global Managers, Signature Global Advisors, American Managers are registered trademarks of CI Investments Inc. ™Portfolio Select Series, Portfolio Series, and Signature Funds are trademarks of CI Investments Inc.App Store and iPad are trademarks of Apple inc., registered in the U.S. and other countries. Cambridge Advisors is the business name of CI Global Holdings Inc. Certain portfolio managers of Cambridge Advisors are registered with CI Investments Inc.

FOR ADVISOR USE ONLY

• Customize content to get the information that matters to you.

• Stay up-to-date with commentaries and podcasts from CI’s leading portfolio managers.

• Enjoy increased search capabilities, including a new Fund Code Finder.

• Access AdvisorOnline to view your sales and assets and client accounts.

• Use illustration tools and fi nancial calculators.

And much more ...

Stay connected with

the new CI Investments iPad® App

FOR ADVISOR USE ONLY 1112

-171

8_E

(01/

12)

Available at the Apple App Store