Semi-Annual Financial Statement– as at September 30, 2012 · The CI Funds Board of Governors was...

Semi-Annual Financial Statement – as at September 30, 2012

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Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

About the CI Funds Board of Governors

Letter from the CI Funds Board of Governors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Portfolios

Portfolio Series Balanced Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Portfolio Series Balanced Growth Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Portfolio Series Conservative Balanced Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Portfolio Series Conservative Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Portfolio Series Growth Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

Portfolio Series Income Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32

Portfolio Series Maximum Growth Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37

Notes to the Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43

Legal Notice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49

CI Investments Inc., the Manager of the Funds, appoints independent auditors to audit the Funds’Annual Financial Statements. Under Canadian securities laws (National Instrument 81-106), if anauditor has not reviewed the Semi-Annual Financial Statements, this must be disclosed in anaccompanying notice.

The Funds’ independent auditors have not performed a review of these Semi-Annual FinancialStatements in accordance with standards established by the Canadian Institute of CharteredAccountants.

Enclosed are the Financial Statements for your CI Investments

mutual funds for the six months ending September 30, 2012. Inside is

important information about each fund, including its financial

statements for the period and a list of the portfolio holdings at the end

of the period.

Additional information about your funds can be found on our website,

www.ci.com.

If you have any questions about your investments, please contact your

financial advisor. CI is proud to partner with advisors across Canada.

We believe investors are most successful when they follow an investment

plan developed with the assistance of a qualified advisor.

You may also contact CI Client Services at 1-800-792-9355.

Thank you for investing with us.

CANADA’S INVESTMENT COMPANY

CI has been investing on behalf of Canadians since 1965 and has grown

to become one of Canada’s largest investment fund companies. We

manage over $73 billion on behalf of two million Canadians. CI is a

subsidiary of CI Financial Corp., a TSX-listed financial services firm

with $97 billion in fee-earning assets at September 30, 2012.

CI provides one of the industry’s widest selections of investment products

and services and a strong lineup of leading portfolio management teams.

Our portfolio management expertise is offered through several platforms,

including mutual funds, tax-efficient funds, segregated funds, and

managed solutions.

2 Queen Street East, Twentieth FloorToronto, Ontario M5C 3G7www.ci.com

Telephone: 416-364-1145Toll Free: 1-800-268-9374Facsimile: 416-364-6299

– 1 –

The CI Funds Board of Governors was voluntarily established by CI in 1998 making it one of the first

such fund governance bodies in Canada.

The Board of Governors acts as an independent governance body the Funds, providing impartial

judgment on conflicts of interest with a view to the best interests of the Funds and investors.

The Board of Governors recommends the best course of action to achieve a fair and reasonable result

on any conflict of interest issues, and CI takes into account its recommendation in accordance with

its fiduciary duty to the Funds. All of the members of the Board are independent of CI.

The Board of Governors mandate is set out in a separate charter and reviewed annually by the Board

to ensure its mandate conforms to the expectations and requirements of Canadian securities

regulators. Along with dealing with conflicts of interest, the mandate provides that the Board acts as

an audit committee for the Funds for the purpose of reviewing the financial statements of the Funds

with the auditors of the Funds and reviews holdings, purchases and sales by the Funds of securities

of The Bank of Nova Scotia and CI Financial Corp.

The Board also reviews and discusses on a regular basis matters including compliance of the Funds

with CI’s relevant policies and procedures, approval of the Funds’ auditors and the fees paid to those

auditors, and the performance of the Board and its members.

The Board of Governors adheres to the requirements set out by Canadian securities regulators in

National Instrument 81-107 Independent Review Committee for Investment Funds which requires all

mutual funds in Canada to have independent review committees.

The Board of Governors are compensated as recommended by the Canadian securities regulators

in their rule and as set out in its mandate. These expenses are paid by CI and charged to the Funds

as part of their administration fee.

The members of the Board of Governors are:

William Harding, Managing Partner, Alpine Asset Advisors AG

Governor since June 2005

Stuart P. Hensman, Corporate Director

Governor since December 2004

Christopher M. Hopper, President, KLQ Mechanical Ltd.

Governor since May 2007

Sharon M. Ranson, President, The Ranson Group

Governor since December 2004

James M. Werry, Corporate Director

Governor since September 2011

Further information regarding the Board is available at www.ci.com including the Board’s full mandate.

About the CI Funds Board of Governors

The CI Funds Board of Governors is pleased to report on its activities in respect of the semi-annual

period ended September 30, 2012 and to date. The Governors are appointed pursuant to the

Declarations of Trust governing the Funds.

The Governors have reviewed, commented on and approved the CI Code of Ethics and Conduct, which

establishes rules of conduct designed to ensure fair treatment of the Funds’ securityholders and that,

at all times, the interests of the Funds and their securityholders are placed above personal interests

of employees, officers and directors of the Manager and each of its subsidiaries and affiliates, the

subadvisers, and the Governors, through the application of the highest standards of integrity and

ethical business conduct. The CI Code of Ethics and Conduct requires the prior clearance of personal

trades and restricts the ability of staff to trade any securities held by the Funds. The objective is not

only to remove any potential for real conflict of interest but to avoid any perception of conflict. The

Manager's year 2012 report on compliance with the CI Code of Ethics and Conduct and other relevant

policies has been provided to the Governors in a timely and satisfactory manner.

The Governors report that management has been open and cooperative, permitting the Governors to

meet with subadvisers, to meet with individual department heads and personnel to review control

mechanisms and compliance procedures, including those relating to the personal securities trading

activity of employees, and to consider other matters that affect the Funds. During 2012, the Governors

also acted as the audit committee of the Funds. The audit committee reviewed, with the Funds’

auditors, the planning, scope and results of the audit of the financial statements of the Funds for the

year 2012. In November 2012, the Board of Governors received and accepted the Semi-Annual

Financial Statements of the Funds.

Stuart P. Hensman

Chair, Board of Governors

November 2012

Letter from the CI Funds Board of Governors

Semi-Annual Financial Statements as at September 30, 2012 – 2 –

Portfolio Series Balanced FundStatement of Investment Portfolio as at September 30, 2012 (unaudited)

– 3 – CIG - 7710

No. of Shares/ Average FairUnits Cost ($) Value ($)

FUNDS (99.8%)13,911,044 Cambridge American Equity Corporate

Class (A Shares)† 62,356,215 62,043,257 10,388,521 Cambridge Canadian Equity Corporate

Class (A Shares)† 116,395,783 119,156,331 6,624,826 Cambridge Global Equity Corporate

Class (A Shares)† 67,724,791 70,090,655 9,226,249 Cambridge Income Corporate Class

(A shares)† 94,200,000 95,122,625 8,870,975 CI American Managers® Corporate

Class (A Shares)† 88,681,306 99,354,923 10,554,388 CI American Small Companies Corporate

Class (A Shares)† 66,070,708 71,031,031 9,647,422 CI American Value Corporate Class

(A Shares)† 90,349,145 103,709,782 6,909,910 CI Canadian Investment Corporate Class

(A Shares)† 100,850,202 117,675,775 24,105,457 CI Global Bond Fund (Class I)† 183,331,566 188,745,729 11,401,009 CI International Value Corporate Class

(A Shares)† 132,683,848 118,570,488 3,808,825 Harbour Corporate Class (A Shares)† 75,539,616 95,944,314

34,209,472 Signature Canadian Bond Fund (Class I)† 342,860,860 365,699,255 12,640,691 Signature Corporate Bond Fund

(Class I)† 126,612,126 132,853,663 11,813,470 Signature Diversified Yield Fund

(Class I)† 108,575,264 117,780,299 3,279,411 Signature Emerging Markets Corporate

Class (A Shares)† 46,799,288 45,911,760 9,176,360 Signature High Income Fund (Class I)† 104,352,388 117,457,406

14,131,106 Signature International Corporate Class (A Shares)† 136,077,898 118,418,666

7,174,695 Signature Select Canadian Corporate Class (A Shares)† 135,117,733 142,776,423

5,933,434 Synergy American Corporate Class (A Shares)† 59,888,608 60,995,701

7,801,579 Synergy Canadian Corporate Class (A Shares)† 92,416,687 106,803,616

Total Investments (99.8%) 2,230,884,032 2,350,141,699

Other Net Assets (Liabilities) (0.2%) 4,887,898

Net Assets (100.0%) 2,355,029,597

†The Fund invests in Underlying Funds. The Fund and the Underlying Funds are commonly managed by CI Investments Inc. Percentages shown in brackets relate investments at fair value to net assets of the Fund.The accompanying notes are an integral part of these financial statements.

Semi-Annual Financial Statements as at September 30, 2012

Portfolio Series Balanced FundFinancial Statements (unaudited)

– 4 –Semi-Annual Financial Statements as at September 30, 2012

AssetsInvestments at fair value*CashShort-term investmentsMargin for short salesIncome taxes recoverableDaily variation margin on derivative investmentsUnrealized gain on futures and

foreign currency forward contractsCash collateral received for securities on loan (Note 6)Swaps, swaptions and options at fair valueReceivable for unit subscriptionsReceivable for securities soldFees rebate receivableReceivable for dividends and accrued interest

LiabilitiesBank overdraftManagement fees payableAccrued expensesUnrealized loss on futures and

foreign currency forward contractssSwaps, swaptions and options at fair valuePayable for securities purchasedPayable for unit redemptionsPayable for cash collateral under securities lending (Note 6)Investments sold short at fair value**Distributions payable

Net assets and unitholders' equity

**Investments at cost**Investments sold short at cost

Net assets per classClass AClass FClass IClass AT5Class FT5Class AT8Class FT8

Net assets per unit Class AClass FClass IClass AT5Class FT5Class AT8Class FT8

Number of units outstanding(see Schedule of Fund Unit Transactions)

Class AClass FClass IClass AT5Class FT5Class AT8Class FT8

2,350,142 2,385,89412,702 5,161

- -- -- -- -

- -- -- -

1,673 1,756- -- -

3,293 4,4162,367,810 2,397,227

- -- -- -

- -- -- -

12,749 2,147- -- -

31 2912,780 2,176

2,355,030 2,395,051

2,230,884 2,238,002- -

1,492,963 1,502,0134,216 3,082

852,293 884,4942,012 1,922

492 5013,044 3,034

10 5

22.89 22.8411.37 11.2824.56 24.217.61 7.789.37 9.526.47 6.71

10.38 10.71

65,217,627 65,757,206370,777 273,313

34,705,422 36,532,165264,512 247,13252,515 52,653

470,632 451,796986 472

Statements of Net Assets (cont’d)(in $000’s except for per unit amounts and units outstanding)

as at as atSeptember 30, 2012 March 31, 2012

Statements of Net Assets(in $000’s except for per unit amounts and units outstanding)


The accompanying notes are an integral part of these financial statements.

– 5 –


IncomeDividendsInterest Securities lending (Note 6)Derivative income (loss)Income distribution from investmentsFees rebateLess: Foreign withholding taxes

ExpensesManagement fees (Note 5)Administrative fees (Note 5)Interest expenseHarmonized sales tax/Goods and services tax

Net investment income (loss) for the period

Realized and unrealized gain (loss) on investments and commissions and other portfolio transaction costs

Realized gain (loss) on investmentsForeign exchange gain (loss)Commissions and other portfolio transaction costs†

Capital gain distribution from investmentsChange in unrealized appreciation (depreciation)

of investmentsNet gain (loss) on investmentsIncrease (decrease) in net assets from operations

Increase (decrease) in net assets from operations per classClass AClass FClass IClass AT5Class FT5Class AT8Class FT8

Increase (decrease) in net assets from operationsper unit (Note 2)


Class ANet assets, beginning of periodCapital transactions

Proceeds from units issued Reinvested distributions (Note 7)Amounts paid for units redeemed

Distributions to investorsFrom realized gainsFrom net incomeFrom return of capital

Increase (decrease) in net assets from operationsNet assets, end of period

Class FNet assets, beginning of periodCapital transactions




Class INet assets, beginning of periodCapital transactions




- -29 31

- -- -

16,583 23,39117,672 965

- -34,284 24,387

14,607 -1,471 1,502

1 22,575 63

18,654 1,56715,630 22,820

27,637 4,442- -- -- 3,586

(28,634) (223,905)(997) (215,877)

14,633 (193,057)

3,058 (125,989)48 (255)

11,506 (66,413)9 (136)4 (39)8 (225)- -

0.04 (1.91)0.15 (0.89)0.33 (1.75)0.04 (0.69)0.08 (0.77)0.03 (0.62)0.33 -

1,502,013 1,536,388

127,965 128,595- -

(140,073) (147,752)(12,108) (19,157)

- -- -- -- -

3,058 (125,989)1,492,963 1,391,242

3,082 3,164

1,412 466- -

(326) (309)1,086 157

- -- -- -- -

48 (255)4,216 3,066

884,494 955,524

22,446 25,478- -

(66,153) (65,042)(43,707) (39,564)

- -- -- -- -

11,506 (66,413)852,293 849,547

Statements of Changes in Net Assets for the periods ended September 30 (in $000’s)

2012 2011

Statements of Operations for the periods ended September 30(in $000’s except for per unit amounts)

2012 2011

†Investment transactions of the Fund are not subject to commissions or transaction costs. The accompanying notes are an integral part of these financial statements.



– 6 –

Class AT5Net assets, beginning of periodCapital transactions




Class FT5Net assets, beginning of periodCapital transactions












Total FundNet assets, beginning of periodCapital transactions




5 -

5 -- -- -5 -

- -- -- -- -- -

10 -

2,395,051 2,500,216

152,383 155,4871 -

(206,857) (214,019)(54,473) (58,532)

- -- -

(181) (166)(181) (166)

14,633 (193,057)2,355,030 2,248,461

1,922 1,645

326 4231 -

(197) (313)130 110

- -- -

(49) (41)(49) (41)

9 (136)2,012 1,578

501 521

- -- -

(1) (1)(1) (1)

- -- -

(12) (13)(12) (13)

4 (39)492 468

3,034 2,974

229 525- -

(107) (602)122 (77)

- -- -

(120) (112)(120) (112)

8 (225)3,044 2,560

Statements of Changes in Net Assets (cont’d)for the periods ended September 30 (in $000’s)

2012 2011



2012 2011


Portfolio Series Balanced FundFinancial Statements – Supplementary Schedules (unaudited)

– 7 –

Class ABalance, beginning of periodUnits issued for cash Units issued for reinvested distributions (Note 7)Units redeemedBalance, end of period

Class FBalance, beginning of periodUnits issued for cash Units issued for reinvested distributions (Note 7)Units redeemedBalance, end of period

Class IBalance, beginning of periodUnits issued for cash Units issued for reinvested distributions (Note 7)Units redeemedBalance, end of period

Class AT5Balance, beginning of periodUnits issued for cash Units issued for reinvested distributions (Note 7)Units redeemedBalance, end of period

Class FT5Balance, beginning of periodUnits issued for cash Units issued for reinvested distributions (Note 7)Units redeemedBalance, end of period



Schedule of Fund Unit Transactions for the periods ended September 30

2012 2011

65,757,206 66,088,8335,704,794 5,668,301

- -(6,244,373) (6,528,028)65,217,627 65,229,106

273,313 275,574126,490 42,686

- -(29,026) (28,943)370,777 289,317

36,532,165 38,746,167935,089 1,055,517

- -(2,761,832) (2,705,259)34,705,422 37,096,425

247,132 197,39243,314 52,539

144 22(26,078) (38,242)264,512 211,711

52,653 51,008- -- -

(138) (140)52,515 50,868

451,796 399,59835,393 73,315

- -(16,557) (81,720)470,632 391,193

472 -500 -14 -

- -986 -


Annual management fee rateClass AClass FClass IClass AT5Class FT5Class AT8Class FT8

Annual fixed administration fee rateClass AClass FClass IClass AT5Class FT5Class AT8Class FT8

2.000.90

Paid directly by investor2.000.902.000.90

0.200.20

-0.200.200.200.20

Schedule of Fees (Note 5)as at September 30, 2012 (%)

The maximum management and fixed administration fee expressed as a percentage of the daily netasset value that can be charged to a class is as follows:


Portfolio Series Balanced FundFund Specific Financial Instruments Risks (Note 11) (unaudited)

The Fund’s investments were concentrated in the following Underlying Funds:

as at September 30, 2012

Categories Net Assets (%)Signature Canadian Bond Fund (Class I) ................................................................................. 15.7Signature Global Bond Fund (Class I) ...................................................................................... 8.0Signature Select Canadian Corporate Class (A Shares) ......................................................... 6.1Signature Corporate Bond Fund (Class I) ................................................................................ 5.6Cambridge Canadian Equity Corporate Class (A Shares)........................................................ 5.1CI International Value Corporate Class (A Shares) ................................................................. 5.0Signature International Corporate Class (A Shares) ............................................................... 5.0Signature Diversified Yield Fund (Class I) ............................................................................... 5.0CI Canadian Investment Corporate Class (A Shares).............................................................. 5.0Signature High Income Fund (Class I) ..................................................................................... 5.0Synergy Canadian Corporate Class (A Shares) ....................................................................... 4.5CI American Value Corporate Class (A Shares)....................................................................... 4.4CI American Managers® Corporate Class (A Shares) ........................................................... 4.2Harbour Corporate Class (A Shares)........................................................................................ 4.1Cambridge Income Corporate Class (A shares)....................................................................... 4.0CI American Small Companies Corporate Class (A Shares) ................................................... 3.0Cambridge Global Equity Corporate Class (A Shares) ............................................................ 3.0Cambridge American Equity Corporate Class (A Shares) ....................................................... 2.6Synergy American Corporate Class (A Shares) ....................................................................... 2.6Signature Emerging Markets Corporate Class (A Shares)...................................................... 1.9Other Net Assets (Liabilities) .................................................................................................. 0.2

as at March 31, 2012

Categories Net Assets (%)Signature Canadian Bond Fund (Class I) ................................................................................. 15.3 Signature High Income Fund (Class I) ..................................................................................... 9.4 CI Canadian Investment Corporate Class (A Shares).............................................................. 8.2 Signature Select Canadian Corporate Class (A Shares) ........................................................ 7.8 CI Global Bond Fund (Class I) .................................................................................................. 7.8 CI International Value Corporate Class (A Shares) ................................................................ 5.7 Signature Corporate Bond Fund (Class I) ................................................................................ 5.6 CI American Value Corporate Class (A Shares)....................................................................... 5.1 Synergy Canadian Corporate Class (A Shares) ....................................................................... 5.0 CI International Corporate Class (A Shares) .......................................................................... 4.9 CI American Managers® Corporate Class (A Shares) ........................................................... 4.4 Harbour Corporate Class (A Shares) ...................................................................................... 4.0 Cambridge American Equity Corporate Class (A Shares) ....................................................... 3.3 CI American Small Companies Corporate Class (A Shares) .................................................. 3.3 Synergy American Corporate Class (A Shares) ...................................................................... 2.9 Signature Diversified Yield Fund (Class I) ............................................................................... 2.5 Cambridge Global Equity Corporate Class (A Shares) ............................................................ 2.4 CI Emerging Markets Corporate Class (A Shares) .................................................................. 2.0 Other Net Assets (Liabilities) .................................................................................................. 0.4

For details relating to other price risk, credit risk, currency risk, interest rate risk and fair valuehierarchy, refer to the audited annual financial statements as at March 31, 2012, as the Fund'sexposure to those risks remains unchanged.Signature High Income Fund (Class I) ..................................................................................... 12.1

– 8 –



CI Canadian Investment Corporate Class (A Shares).............................................................. 9.4Signature Select Canadian Corporate Class (A Shares) ......................................................... 8.3Signature Corporate Bond Fund (Class I) ................................................................................ 8.1CI International Value Corporate Class (A Shares) ................................................................. 6.7

Portfolio Series Balanced Growth FundStatement of Investment Portfolio as at September 30, 2012 (unaudited)

– 9 – CIG - 2601


FUNDS (99.3%)3,163,148 Black Creek International Equity Corporate

Class (A Shares)† 35,383,494 35,427,262 9,742,152 Cambridge American Equity Corporate


Class (A Shares)† 71,878,896 73,585,677 317,312 Cambridge Canadian Equity Corporate

Class (I Shares)† 3,956,875 3,988,606 4,810,842 Cambridge Global Equity Corporate Class

(A Shares)† 47,713,918 50,898,705 5,700,005 CI American Managers® Corporate Class

(A Shares)† 59,130,040 63,840,059 5,696,918 CI American Small Companies Corporate



(A Shares)† 58,624,656 60,509,899 238,106 CI Canadian Investment Corporate Class

(I Shares)† 2,923,944 2,933,468 3,029,205 CI Canadian Small/Mid Cap Fund

(Class I)† 30,784,680 38,622,367 141,149 CI Emerging Markets Corporate Class

(I Shares)† 1,499,000 1,545,579 7,945,582 Signature Global Bond Fund (Class I)† 60,732,835 62,213,907 6,451,397 CI International Value Corporate Class


17,708,982 Signature Canadian Bond Fund (Class I)† 178,145,066 189,309,018 4,286,274 Signature Corporate Bond Fund

(Class I)† 43,072,933 45,048,745 5,126,849 Signature Diversified Yield Fund

(Class I)† 50,969,788 51,114,683 2,573,688 Signature Emerging Markets Corporate

Class (A Shares)† 36,855,825 36,031,637 3,606,588 Signature High Income Fund (Class I)† 44,139,705 46,164,330 6,105,065 Signature International Corporate Class

(A Shares)† 60,414,702 51,160,448 4,477,277 Signature Select Canadian Corporate

Class (A Shares)† 88,311,440 89,097,809 3,099,661 Synergy American Corporate Class

(A Shares)† 31,524,669 31,864,518 3,734,851 Synergy Canadian Corporate Class

(A Shares)† 46,305,856 51,130,111



Net Assets (100.0%) 1,282,643,955



Portfolio Series Balanced Growth FundFinancial Statements (unaudited)








Net assets per classClass AClass FClass IClass AT5Class FT5Class AT6Class AT8Class FT8

Net assets per unit Class AClass FClass IClass AT5Class FT5Class AT6Class AT8Class FT8


Class AClass FClass IClass AT5Class FT5Class AT6Class AT8Class FT8

1,273,661 1,249,1777,155 5,628

- -- -- -- -

- -- -- -

1,324 1,365- -- -

1,386 1,6771,283,526 1,257,847

- -- -- -

- -- -- -

874 1,366- -- -8 8

882 1,3741,282,644 1,256,473

1,236,426 1,204,088- -

846,521 817,3924,523 3,786

427,526 433,6171,447 1,244

- -2,249 -

368 43410 -

12.42 12.4312.05 12.1210.31 10.447.69 7.89

- 10.5410.00 -6.54 6.827.49 7.85

68,149,318 65,739,397375,290 312,236

41,480,177 41,531,601188,172 157,645

- 10224,810 -56,277 63,7141,397 14






– 11 –









Increase (decrease) in net assets from operations per classClass AClass FClass IClass AT5Class FT5Class AT6Class AT8Class FT8




Proceeds from units issued Reinvested distributions (Note 7)Amounts paid for units redeemedAcquisition of assets from terminated Funds (Note 1)











- -22 13

- -- -

6,600 9,4878,793 1,059

- -15,415 10,559

7,960 -878 901

1 32 -

8,841 9046,574 9,655

1,701 (509)(9) (1)- -

3,135 560

(7,854) (130,296)(3,027) (130,246)3,547 (120,591)

(966) (81,836)18 (354)

4,483 (38,248)2 (94)1 -

12 -(3) (59)- -

(0.02) (1.24)0.06 (1.17)0.11 (0.91)0.02 (0.80)0.87 -0.06 -(0.04) (0.73)0.57 -

817,392 839,331

61,100 69,277- -

(80,076) (76,029)49,071 -30,095 (6,752)

- -- -- -- -

(966) (81,836)846,521 750,743

3,786 3,727

118 58738 -

(217) (416)818 -757 171

- -(38) -

- -(38) -18 (354)

4,523 3,544

433,617 450,123

12,124 14,67310,059 -(22,693) (25,358)

- -(510) (10,685)

- -(10,064) -

- -(10,064) -

4,483 (38,248)427,526 401,190


2012 2011


2012 2011




– 12 –

























434 535

2 124- 1

(50) (95)- -

(48) 30

- -- -

(15) (24)(15) (24)(3) (59)

368 482

- -

10 -- -- -- -

10 -

- -- -- -- -- -

10 -

1,256,473 1,294,244

73,818 85,18410,103 4

(103,319) (101,919)52,182 -32,784 (16,731)

- -(10,102) -

(58) (50)(10,160) (50)

3,547 (120,591)1,282,644 1,156,872

1,244 528

384 5233 3

(154) (21)- -

233 505

- -- -

(32) (26)(32) (26)

2 (94)1,447 913

- -

10 -- -

(11) -- -

(1) -

- -- -- -- -1 -- -

- -

70 -3 -

(118) -2,293 -2,248 -

- -- -

(11) -(11) -12 -

2,249 -

Statements of Changes in Net Assets (cont’d) for the periods ended September 30 (in $000’s)

2012 2011



2012 2011


Portfolio Series Balanced Growth FundFinancial Statements – Supplementary Schedules (unaudited)

– 13 –

Class ABalance, beginning of periodUnits issued for cash Units issued for reinvested distributions (Note 7)Units redeemedAcquisition of assets from terminated Funds (Note 1)Balance, end of period

Class FBalance, beginning of periodUnits issued for cash Units issued for reinvested distributions (Note 7)Units redeemedAcquisition of assets from terminated Funds (Note 1)Balance, end of period

Class IBalance, beginning of periodUnits issued for cash Units issued for reinvested distributions (Note 7)Units redeemedAcquisition of assets from terminated Funds (Note 1)Balance, end of period

Class AT5Balance, beginning of periodUnits issued for cash Units issued for reinvested distributions (Note 7)Units redeemedAcquisition of assets from terminated Funds (Note 1)Balance, end of period

Class FT5Balance, beginning of periodUnits issued for cash Units issued for reinvested distributions (Note 7)Units redeemedAcquisition of assets from terminated Funds (Note 1)Balance, end of period




2012 2011

65,739,397 66,182,8675,032,221 5,623,200

- 44(6,595,636) (6,190,164)3,973,336 -

68,149,318 65,615,947

312,236 301,4039,889 48,8583,141 -

(18,286) (34,322)68,310 -

375,290 315,939

41,531,601 42,247,0611,188,237 1,425,149

982,327 -(2,221,988) (2,441,377)

- -41,480,177 41,230,833

157,645 62,33949,939 62,595

451 321(19,863) (2,687)

- -188,172 122,568

10 -987 -23 -

(1,020) -- -- -

- -7,036 -

292 -(11,867) -229,349 -224,810 -

63,714 70,670331 16,845

- 82(7,768) (13,997)

- -56,277 73,600


Annual management fee rateClass AClass FClass IClass AT5Class FT5Class AT6Class AT8Class FT8

Annual fixed administration fee rateClass AClass FClass IClass AT5Class FT5Class AT6Class AT8Class FT8

2.001.00

Paid directly by investor2.001.002.002.001.00

0.220.22

-0.220.220.220.220.22





14 -1,332 -

51 -- -- -

1,397 -

Schedule of Fund Unit Transactions (cont’d)for the periods ended September 30

2012 2011

Portfolio Series Balanced Growth FundFund Specific Financial Instruments Risks (Note 11) (unaudited)



Categories Net Assets (%)Signature Canadian Bond Fund (Class I) ................................................................................. 14.8Signature Select Canadian Corporate Class (A Shares) ......................................................... 6.9Harbour Corporate Class (A Shares)........................................................................................ 5.9Cambridge Canadian Equity Corporate Class (A Shares)........................................................ 5.7CI International Value Corporate Class (A Shares) ................................................................. 5.2CI American Value Corporate Class (A Shares)....................................................................... 5.0CI American Managers® Corporate Class (A Shares) ........................................................... 5.0Signature Global Bond Fund (Class I) ...................................................................................... 4.9CI Canadian Investment Corporate Class (A Shares).............................................................. 4.7Signature International Corporate Class (A Shares) ............................................................... 4.0Synergy Canadian Corporate Class (A Shares) ....................................................................... 4.0Signature Diversified Yield Fund (Class I) ............................................................................... 4.0Cambridge Global Equity Corporate Class (A Shares) ............................................................ 4.0Signature High Income Fund (Class I) ..................................................................................... 3.6Signature Corporate Bond Fund (Class I) ................................................................................ 3.5Cambridge American Equity Corporate Class (A Shares) ....................................................... 3.4CI Canadian Small/Mid Cap Fund (Class I) ............................................................................. 3.0CI American Small Companies Corporate Class (A Shares) ................................................... 3.0Signature Emerging Markets Corporate Class (A Shares)...................................................... 2.8Black Creek International Equity Corporate Class (A Shares) ................................................ 2.8Synergy American Corporate Class (A Shares) ....................................................................... 2.5Other Net Assets (Liabilities) .................................................................................................. 0.7Cambridge Canadian Equity Corporate Class (A Shares)........................................................ 0.3CI Canadian Investment Corporate Class (I Shares) ............................................................... 0.2CI Emerging Markets Corporate Class (I Shares).................................................................... 0.1


Categories Net Assets (%)Signature Canadian Bond Fund (Class I) ................................................................................. 14.5 Signature Select Canadian Corporate Class (A Shares) ........................................................ 9.5 CI Canadian Investment Corporate Class (A Shares).............................................................. 8.7 Signature High Income Fund (Class I) ..................................................................................... 7.5 CI International Value Corporate Class (A Shares) ................................................................ 6.9 CI International Corporate Class (A Shares) .......................................................................... 5.4 CI American Value Corporate Class (A Shares)....................................................................... 5.3 CI American Managers® Corporate Class (A Shares) ........................................................... 4.8 Harbour Corporate Class (A Shares) ...................................................................................... 4.7 Signature Corporate Bond Fund (Class I) ................................................................................ 4.3 CI Global Bond Fund (Class I) .................................................................................................. 4.2 Cambridge Global Equity Corporate Class (A Shares) ............................................................ 4.0 Synergy Canadian Corporate Class (A Shares) ....................................................................... 3.7 Cambridge American Equity Corporate Class (A Shares) ....................................................... 3.5 CI Canadian Small/Mid Cap Fund (Class I) ............................................................................. 3.4 CI American Small Companies Corporate Class (A Shares) .................................................. 3.2 CI Emerging Markets Corporate Class (A Shares) .................................................................. 3.0 Synergy American Corporate Class (A Shares) ...................................................................... 2.8 Other Net Assets (Liabilities) .................................................................................................. 0.6

For details relating to other price risk, credit risk, currency risk, interest rate risk and fair valuehierarchy, refer to the audited annual financial statements as at March 31, 2012, as the Fund'sexposure to those risks remains unchanged.

– 14 –



Signature High Income Fund (Class I) ..................................................................................... 12.1CI Canadian Investment Corporate Class (A Shares).............................................................. 9.4Signature Select Canadian Corporate Class (A Shares) ......................................................... 8.3Signature Corporate Bond Fund (Class I) ................................................................................ 8.1CI International Value Corporate Class (A Shares) ................................................................. 6

Portfolio Series Conservative Balanced FundStatement of Investment Portfolio as at September 30, 2012 (unaudited)

– 15 – CIG - 2600





Class (I Shares)† 2,674,259 2,695,705 1,863,340 Cambridge Global Equity Corporate

Class (A Shares)† 19,324,669 19,714,132 3,164,959 Cambridge Income Corporate Class

(A shares)† 32,333,207 32,630,731 2,237,443 CI American Managers® Corporate




(I Shares)† 906,212 909,164 8,122,234 Signature Global Bond Fund (Class I)† 61,272,054 63,597,095 2,520,495 CI International Value Corporate Class


12,343,554 Signature Canadian Bond Fund (Class I)† 124,606,784 131,952,588

5,060,215 Signature Corporate Bond Fund (Class I)† 50,903,879 53,182,861

2,912,913 Signature Diversified Yield Fund(Class I)† 26,582,319 29,041,742

2,276,802 Signature High Income Fund (Class I)† 26,331,249 29,143,060 3,149,715 Signature International Corporate Class




(A Shares)† 23,943,842 26,410,918

Total Investments (98.6%) 631,642,408 656,084,932


Net Assets (100.0%) 665,299,099



Portfolio Series Conservative Balanced FundFinancial Statements (unaudited)








Net assets per classClass AClass FClass IClass AT6

Net assets per unit Class AClass FClass IClass AT6


Class AClass FClass IClass AT6

656,085 615,1326,962 3,331

- -- -- -- -

- -- -- -

2,118 642- -- -

1,020 1,478666,185 620,583

- -- -- -

- -- -- -

886 398- -- -- -

886 398665,299 620,185

631,642 589,217- -

483,980 438,9441,838 1,590

174,871 179,6514,610 -

12.67 12.6311.55 11.5710.51 10.6010.00 -

38,188,665 34,748,362159,189 137,357

16,644,973 16,941,336461,200 -











Increase (decrease) in net assets from operations per classClass AClass FClass IClass AT6


Class AClass FClass IClass AT6

- -14 5

- -- -

5,436 7,4294,034 10

- -9,484 7,444

4,384 998484 477

- 1749 144

5,617 1,6203,867 5,824

3,490 2,0196 (42)- -- 1,183

(1,472) (45,233)2,024 (42,073)5,891 (36,249)

2,785 (27,011)20 (109)

3,065 (9,129)21 -

0.07 (0.79)0.15 (0.65)0.19 (0.53)0.06 -


2012 2011

– 17 –

Portfolio Series Conservative Balanced FundFinancial Statements (unaudited)














438,944 439,370

51,194 48,6641,144 -

(48,879) (53,386)39,942 -43,401 (4,722)

- -(1,150) -

- -(1,150) -2,785 (27,011)

483,980 407,637

1,590 2,017

241 12522 -

(178) (246)165 -250 (121)

- -(22) -

- -(22) -20 (109)

1,838 1,787

179,651 192,167

4,320 1,9674,681 -

(12,165) (14,258)- -

(3,164) (12,291)

- -(4,681) -

- -(4,681) -3,065 (9,129)

174,871 170,747


2012 2011










- -

44 -3 -

(305) -4,871 -4,613 -

- -- -

(24) -(24) -21 -

4,610 -

620,185 633,554

55,799 50,7565,850 -

(61,527) (67,890)44,978 -45,100 (17,134)

- -(5,853) -

(24) -(5,877) -5,891 (36,249)

665,299 580,171


2012 2011

Portfolio Series Conservative Balanced FundFinancial Statements – Supplementary Schedules (unaudited)

– 18 –






2012 2011

34,748,362 34,522,0034,107,658 3,887,172

90,716 -(3,925,551) (4,273,568)3,167,480 -

38,188,665 34,135,607

137,357 172,91020,981 10,9981,955 -

(15,501) (21,552)14,397 -

159,189 162,356

16,941,336 17,981,806413,838 184,321448,415 -

(1,158,616) (1,344,128)- -

16,644,973 16,821,999

- -4,355 -

252 -(30,513) -487,106 -461,200 -


Annual management fee rateClass AClass FClass IClass AT6

Annual fixed administration fee rateClass AClass FClass IClass AT6

2.001.00

Paid directly by investor2.00

0.220.22

-0.22




Portfolio Series Conservative Balanced FundFund Specific Financial Instruments Risks (Note 11) (unaudited)



Categories Net Assets (%)Signature Canadian Bond Fund (Class I) ................................................................................. 19.8Signature Global Bond Fund (Class I) ...................................................................................... 9.6Signature Corporate Bond Fund (Class I) ................................................................................ 8.0Signature Select Canadian Corporate Class (A Shares) ......................................................... 4.9Cambridge Income Corporate Class (A shares)....................................................................... 4.9CI American Value Corporate Class (A Shares)....................................................................... 4.7Cambridge Canadian Equity Corporate Class (A Shares)........................................................ 4.6Signature High Income Fund (Class I) ..................................................................................... 4.4Signature Diversified Yield Fund (Class I) ............................................................................... 4.4Synergy Canadian Corporate Class (A Shares) ....................................................................... 4.0Signature International Corporate Class (A Shares) ............................................................... 4.0Harbour Corporate Class (A Shares)........................................................................................ 3.9CI International Value Corporate Class (A Shares) ................................................................. 3.9CI Canadian Investment Corporate Class (A Shares).............................................................. 3.8CI American Managers® Corporate Class (A Shares) ........................................................... 3.8Synergy American Corporate Class (A Shares) ....................................................................... 3.5Cambridge American Equity Corporate Class (A Shares) ....................................................... 3.0Cambridge Global Equity Corporate Class (A Shares) ............................................................ 3.0Other Net Assets (Liabilities) .................................................................................................. 1.4Cambridge Canadian Equity Corporate Class (A Shares)........................................................ 0.3CI Canadian Investment Corporate Class (I Shares) ............................................................... 0.1


Categories Net Assets (%)Signature Canadian Bond Fund (Class I) ................................................................................. 19.1 Signature High Income Fund (Class I) ..................................................................................... 10.3 CI Global Bond Fund (Class I) .................................................................................................. 10.2 Signature Corporate Bond Fund (Class I) ................................................................................ 8.2 CI Canadian Investment Corporate Class (A Shares).............................................................. 6.2 Signature Select Canadian Corporate Class (A Shares) ........................................................ 5.5 CI American Value Corporate Class (A Shares)....................................................................... 5.4 CI International Value Corporate Class (A Shares) ................................................................ 4.9 Signature Diversified Yield Fund (Class I) ............................................................................... 4.4 CI International Corporate Class (A Shares) .......................................................................... 4.3 CI American Managers® Corporate Class (A Shares) ........................................................... 3.9 Synergy Canadian Corporate Class (A Shares) ....................................................................... 3.9 Harbour Corporate Class (A Shares) ...................................................................................... 3.8 Synergy American Corporate Class (A Shares) ...................................................................... 3.5 Cambridge American Equity Corporate Class (A Shares) ....................................................... 3.5 Cambridge Global Equity Corporate Class (A Shares) ............................................................ 2.1 Other Net Assets (Liabilities) .................................................................................................. 0.8


– 19 –



Portfolio Series Conservative FundStatement of Investment Portfolio as at September 30, 2012 (unaudited)

– 20 – CIG - 7770



Class (A Shares)† 25,068,758 25,480,800 2,570,345 Cambridge Global Equity Corporate Class

(A Shares)† 25,751,482 27,194,249 5,254,123 Cambridge Income Corporate Class

(A shares)† 53,663,920 54,170,003 4,585,827 CI American Value Corporate Class



(I Shares)† 580,054 581,944 14,498,154 Signature Global Bond Fund (Class I)† 110,385,336 113,520,544 3,474,822 CI International Value Corporate Class


20,299,688 Signature Canadian Bond Fund (Class I)† 204,110,698 217,003,662

6,976,246 Signature Corporate Bond Fund (Class I)† 70,256,444 73,320,345

5,445,197 Signature Diversified Yield Fund (Class I)† 49,971,727 54,288,616

4,276,823 Signature High Income Fund (Class I)† 48,025,203 54,743,339 3,256,438 Signature International Corporate Class




(A Shares)† 39,664,266 45,513,129



Net Assets (100.0%) 912,619,480



Portfolio Series Conservative FundFinancial Statements (unaudited)



foreign currency forward contractsCash collateral received for securities on loan (Note 6)Swaps, swaptions and options at fair valueReceivable for unit subscriptionsFees rebate receivableReceivable for dividends and accrued interest





Net assets per classClass AClass FClass IClass UClass YClass ZClass AT6Class UT6

Net assets per unit Class AClass FClass IClass UClass YClass ZClass AT6Class UT6


Class AClass FClass IClass UClass YClass ZClass AT6Class UT6

902,993 865,25610,511 6,302

- -- -- -- -

- -- -- -

844 2,633- -

1,741 2,442916,089 876,633

- -- -- -

- -- -- -

3,465 487- -- -5 -

3,470 487912,619 876,146

859,478 818,237- -

511,668 479,1612,874 2,111

380,941 385,3175,087 -

10 -9,268 9,5572,623 -

148 -

13.41 13.2912.56 12.3813.43 13.1610.06 -10.64 10.4810.51 10.4110.01 -10.00 -

38,147,175 36,045,156228,915 170,583

28,367,765 29,285,345505,862 -

972 10882,229 918,496262,172 -14,780 -






– 22 –









Increase (decrease) in net assets from operations per classClass AClass FClass IClass UClass YClass ZClass AT6Class UT6


Class AClass FClass IClass UClass YClass ZClass AT6Class UT6













- -39 26

- -- -

9,106 11,7304,593 -

- -13,738 11,756

4,670 701493 457

- -796 116

5,959 1,2747,779 10,482

8,159 4,100- -- -- 2,157

(3,504) (52,972)4,655 (46,715)

12,434 (36,233)

4,577 (21,684)40 (82)

7,693 (13,970)29 -

- -79 (497)15 -1 -

0.12 (0.65)0.22 (0.54)0.26 (0.49)0.06 -0.57 -0.08 (0.48)0.06 -0.06 -

479,161 442,523

61,408 62,880- -

(55,073) (49,664)21,595 -27,930 13,216

- -- -- -- -

4,577 (21,684)511,668 434,055

2,111 1,949

993 161- -

(318) (265)48 -

723 (104)

- -- -- -- -

40 (82)2,874 1,763

385,317 379,458

17,438 21,071- -

(29,507) (22,065)- -

(12,069) (994)

- -- -- -- -

7,693 (13,970)380,941 364,494


2012 2011


2012 2011




– 23 –

Class UNet assets, beginning of periodCapital transactions




Class YNet assets, beginning of periodCapital transactions




Class ZNet assets, beginning of periodCapital transactions








Class UT6Net assets, beginning of periodCapital transactions








- -

- -4 -

(75) -2,692 -2,621 -

- -- -

(13) -(13) -15 -

2,623 -

- -

- -- -- -

148 -148 -

- -- -

(1) -(1) -1 -

148 -

876,146 835,028

81,137 85,0104 -

(86,696) (73,553)29,608 -24,053 11,457

- -- -

(14) -(14) -

12,434 (36,233)912,619 810,252

- -

137 -- -

(204) -5,125 -5,058 -

- -- -- -- -

29 -5,087 -

- -

10 -- -- -- -

10 -

- -- -- -- -- -

10 -

9,557 11,098

1,151 898- -

(1,519) (1,559)- -

(368) (661)

- -- -- -- -

79 (497)9,268 9,940


2012 2011




2012 2011

Portfolio Series Conservative FundFinancial Statements – Supplementary Schedules (unaudited)

– 24 –




Class UBalance, beginning of periodUnits issued for cash Units issued for reinvested distributions (Note 7)Units redeemedAcquisition of assets from terminated Funds (Note 1)Balance, end of period

Class YBalance, beginning of periodUnits issued for cash Units issued for reinvested distributions (Note 7)Units redeemedAcquisition of assets from terminated Funds (Note 1)Balance, end of period

Class ZBalance, beginning of periodUnits issued for cash Units issued for reinvested distributions (Note 7)Units redeemedAcquisition of assets from terminated Funds (Note 1)Balance, end of period



2012 2011

36,045,156 32,922,7874,658,873 4,732,175

- -(4,175,702) (3,745,594)1,618,848 -

38,147,175 33,909,368

170,583 155,68980,419 12,894

- -(25,929) (21,556)

3,842 -228,915 147,027

29,285,345 28,494,0291,328,662 1,587,605

- -(2,246,242) (1,670,880)

- -28,367,765 28,410,754

- -13,656 -

- -(20,304) -512,510 -505,862 -

10 -962 -

- -- -- -

972 -

918,496 1,054,730111,022 86,190

- -(147,289) (149,421)

- -882,229 991,499

- -- -

408 -(7,528) -

269,292 -262,172 -


Annual management fee rateClass AClass FClass IClass UClass YClass ZClass AT6Class UT6

Annual fixed administration fee rateClass AClass FClass IClass UClass YClass ZClass AT6Class UT6

1.900.90


0.200.20

-0.200.200.200.200.20





2012 2011

Class UT6Balance, beginning of periodUnits issued for cash Units issued for reinvested distributions (Note 7)Units redeemedAcquisition of assets from terminated Funds (Note 1)Balance, end of period

- -- -9 -- -

14,771 -14,780 -

Portfolio Series Conservative FundFund Specific Financial Instruments Risks (Note 11) (unaudited)



Categories Net Assets (%)Signature Canadian Bond Fund (Class I) ................................................................................. 23.7Signature Global Bond Fund (Class I) ...................................................................................... 12.4Signature Corporate Bond Fund (Class I) ................................................................................ 8.0Signature High Income Fund (Class I) ..................................................................................... 6.0Signature Diversified Yield Fund (Class I) ............................................................................... 5.9Cambridge Income Corporate Class (A shares)....................................................................... 5.9CI American Value Corporate Class (A Shares)....................................................................... 5.4Synergy Canadian Corporate Class (A Shares) ....................................................................... 5.0Signature Select Canadian Corporate Class (A Shares) ......................................................... 5.0CI International Value Corporate Class (A Shares) ................................................................. 4.0Signature International Corporate Class (A Shares) ............................................................... 3.0Cambridge Global Equity Corporate Class (A Shares) ............................................................ 3.0Harbour Corporate Class (A Shares)........................................................................................ 3.0CI Canadian Investment Corporate Class (A Shares).............................................................. 2.9Cambridge American Equity Corporate Class (A Shares) ....................................................... 2.8Synergy American Corporate Class (A Shares) ....................................................................... 2.8Other Net Assets (Liabilities) .................................................................................................. 1.1CI Canadian Investment Corporate Class (I Shares) ............................................................... 0.1


Categories Net Assets (%)Signature Canadian Bond Fund (Class I) ................................................................................. 23.0 CI Global Bond Fund (Class I) .................................................................................................. 12.1 Signature High Income Fund (Class I) ..................................................................................... 11.0 Signature Corporate Bond Fund (Class I) ................................................................................ 10.0 Synergy Canadian Corporate Class (A Shares) ....................................................................... 5.7 Signature Select Canadian Corporate Class (A Shares) ........................................................ 5.7 CI American Value Corporate Class (A Shares)....................................................................... 5.4 Signature Diversified Yield Fund (Class I) ............................................................................... 5.4 CI Canadian Investment Corporate Class (A Shares).............................................................. 5.2 CI International Value Corporate Class (A Shares) ................................................................ 4.2 Cambridge American Equity Corporate Class (A Shares) ....................................................... 2.9 Synergy American Corporate Class (A Shares) ...................................................................... 2.9 Cambridge Global Equity Corporate Class (A Shares) ............................................................ 2.8 CI International Corporate Class (A Shares) .......................................................................... 2.5 Other Net Assets (Liabilities) .................................................................................................. 1.2

For details relating to other price risk, credit risk, currency risk, interest rate risk and fair valuehierarchy, refer to the audited annual financial statements as at March 31, 2012, as the Fund'sexposure to those risks remains unchanged.Signature High Income Fund (Class I).............. 12.1

– 25 –



Portfolio Series Growth FundStatement of Investment Portfolio as at September 30, 2012 (unaudited)

– 26 – CIG - 2602


FUNDS (99.4%)1,453,590 Black Creek International Equity Corporate




Class (I Shares)† 1,962,137 1,977,872 2,242,871 Cambridge Global Equity Corporate Class






(I Shares)† 844,779 847,531 1,548,707 CI Canadian Small/Mid Cap Fund

(Class I)† 15,814,599 19,746,011 76,648 CI Emerging Markets Corporate Class

(I Shares)† 814,000 839,294 2,564,064 CI International Value Corporate Class

(A Shares)† 29,856,151 26,666,267 761,861 Harbour Corporate Class (A Shares)† 16,438,271 19,191,267

1,730,881 Harbour Voyageur Corporate Class (A Shares)† 19,573,199 19,489,720

6,490,849 Signature Canadian Bond Fund (Class I)† 65,890,283 69,387,175 1,328,846 Signature Emerging Markets Corporate

Class (A Shares)† 19,311,930 18,603,843 2,371,982 Signature High Yield Bond Corporate

Class (A shares)† 23,874,837 24,573,733 2,501,180 Signature International Corporate Class


Class (A Shares)† 36,114,294 38,926,266 947,941 Synergy American Corporate Class


(A Shares)† 21,742,401 24,431,672



Net Assets (100.0%) 488,899,784



Portfolio Series Growth FundFinancial Statements (unaudited)








Net assets per classClass AClass FClass IClass AT5Class FT5Class AT6Class AT8Class FT8

Net assets per unit Class AClass FClass IClass AT5Class FT5Class AT6Class AT8Class FT8



485,935 475,5612,751 7,581

- -- -- -- -

- -- -- -

340 290- -- -

169 441489,195 483,873

- -- -- -

- -- -- -

288 592- -- -7 7

295 599488,900 483,274

468,501 451,014- -

337,157 329,6712,653 2,162

147,454 150,38159 4

- -527 -

1,039 1,05611 -

11.88 11.9711.69 11.8414.37 14.668.68 8.95

- 10.6210.01 -6.38 6.68

10.00 10.54

28,376,880 27,544,281227,051 182,661

10,258,449 10,255,5896,834 400

- 1052,694 -

162,862 158,0921,051 10






– 28 –




Provision for income taxNet investment income (loss) for the period





Increase (decrease) in net assets from operations per classClass AClass FClass IClass AT5Class FT5Class AT6Class AT8Class FT8















- -10 9

- -- -

1,136 2,5754,702 1,061

- -5,848 3,645

3,185 -351 374

- 1587 -

4,123 375(1) -

1,726 3,270

4,879 (1,604)1 (5)- -- 166

(7,113) (62,785)(2,233) (64,228)

(507) (60,958)

(1,598) (40,573)(10) (211)

1,099 (20,057)1 (1)1 -4 -(5) (116)1 -

(0.06) (1.42)(0.06) (1.31)0.12 (1.57)0.53 (0.35)0.98 -0.05 -(0.04) (0.85)0.83 -

329,671 354,184

24,042 26,087935 -

(34,234) (36,041)19,280 -10,023 (9,954)

- -(939) -

- -(939) -

(1,598) (40,573)337,157 303,657

2,162 2,217

308 15922 -

(790) (687)984 -524 (528)

- -(23) -

- -(23) -(10) (211)

2,653 1,478

150,381 196,798

5,190 4,3514,011 -(9,216) (19,103)

- -(15) (14,752)

- -(4,011) -

- -(4,011) -1,099 (20,057)

147,454 161,989


2012 2011


2012 2011




– 29 –

























1,056 959

198 632 -

(168) (2)- -

32 61

- -(3) -

(41) (40)(44) (40)(5) (116)

1,039 864

- -

10 -- -- -- -

10 -

- -- -- -- -1 -

11 -

483,274 554,158

29,814 30,6644,971 -

(44,421) (55,833)20,790 -11,154 (25,169)

- -(4,976) -

(45) (40)(5,021) (40)

(507) (60,958)488,900 467,991

4 -

56 4- -

(1) -- -

55 4

- -- -

(1) -(1) -1 (1)

59 3

- -

10 -- -

(11) -- -

(1) -

- -- -- -- -1 -- -

- -

- -1 -(1) -

526 -526 -

- -- -

(3) -(3) -4 -

527 -


2012 2011



2012 2011


Portfolio Series Growth FundFinancial Statements – Supplementary Schedules (unaudited)

– 30 –









2012 2011

27,544,281 28,983,1052,066,961 2,217,469

79,195 37(2,946,038) (3,071,068)1,632,481 -

28,376,880 28,129,543

182,661 183,49026,536 13,8901,879 -

(68,805) (59,715)84,780 -

227,051 137,665

10,255,589 13,137,335366,816 297,263281,063 -(645,019) (1,340,827)

- -10,258,449 12,093,771

400 -6,505 414

14 -(85) -

- -6,834 414

10 -986 -27 -

(1,023) -- -- -

- -20 -

111 -(50) -

52,613 -52,694 -

158,092 129,24030,852 8,498

333 51(26,415) (268)

- -162,862 137,521


Annual management fee rateClass AClass FClass IClass AT5Class FT5Class AT6Class AT8Class FT8

Annual fixed administration fee rateClass AClass FClass IClass AT5Class FT5Class AT6Class AT8Class FT8

2.001.00


0.220.22

-0.220.220.220.220.22





10 -999 -42 -

- -- -

1,051 -


2012 2011

Portfolio Series Growth FundFund Specific Financial Instruments Risks (Note 11) (unaudited)


as at September, 2012

Categories Net Assets (%)Signature Canadian Bond Fund (Class I) ................................................................................. 14.1Signature Select Canadian Corporate Class (A Shares) ......................................................... 8.0Cambridge Canadian Equity Corporate Class (A Shares)........................................................ 7.7CI American Value Corporate Class (A Shares)....................................................................... 5.6CI International Value Corporate Class (A Shares) ................................................................. 5.5CI American Managers® Corporate Class (A Shares) ........................................................... 5.2Signature High Yield Bond Corporate Class (A shares) .......................................................... 5.0Synergy Canadian Corporate Class (A Shares) ....................................................................... 5.0CI Canadian Investment Corporate Class (A Shares).............................................................. 4.9Cambridge Global Equity Corporate Class (A Shares) ............................................................ 4.9Cambridge American Equity Corporate Class (A Shares) ....................................................... 4.5Signature International Corporate Class (A Shares) ............................................................... 4.3CI Canadian Small/Mid Cap Fund (Class I) ............................................................................. 4.0Harbour Voyageur Corporate Class (A Shares) ....................................................................... 4.0Harbour Corporate Class (A Shares)........................................................................................ 3.9Signature Emerging Markets Corporate Class (A Shares)...................................................... 3.8Black Creek International Equity Corporate Class (A Shares) ................................................ 3.3CI American Small Companies Corporate Class (A Shares) ................................................... 2.9Synergy American Corporate Class (A Shares) ....................................................................... 2.0Other Net Assets (Liabilities) .................................................................................................. 0.6Cambridge Canadian Equity Corporate Class (A Shares)........................................................ 0.4CI Canadian Investment Corporate Class (I Shares) ............................................................... 0.2CI Emerging Markets Corporate Class (I Shares).................................................................... 0.2


Categories Net Assets (%)Signature Canadian Bond Fund (Class I) ................................................................................. 12.1 Signature Select Canadian Corporate Class (A Shares) ........................................................ 9.2 CI Canadian Investment Corporate Class (A Shares).............................................................. 8.6 CI International Value Corporate Class (A Shares) ................................................................ 7.2 Cambridge Global Equity Corporate Class (A Shares) ............................................................ 6.4 Harbour Corporate Class (A Shares) ...................................................................................... 6.1 CI International Corporate Class (A Shares) .......................................................................... 5.9 CI American Value Corporate Class (A Shares)....................................................................... 5.7 Signature High Income Fund (Class I) ..................................................................................... 5.6 CI American Managers® Corporate Class (A Shares) ........................................................... 5.4 Synergy Canadian Corporate Class (A Shares) ....................................................................... 5.1 CI Canadian Small/Mid Cap Fund (Class I) ............................................................................. 4.8 Cambridge American Equity Corporate Class (A Shares) ....................................................... 4.4 CI Emerging Markets Corporate Class (A Shares) .................................................................. 4.4 CI American Small Companies Corporate Class (A Shares) .................................................. 3.5 Signature Corporate Bond Fund (Class I) ................................................................................ 2.4 Synergy American Corporate Class (A Shares) ...................................................................... 1.6 Other Net Assets (Liabilities) .................................................................................................. 1.6


– 31 –



Portfolio Series Income FundStatement of Investment Portfolio as September 30, 2012 (unaudited)

– 32 – CIG - 7740


FUNDS (94.3%)9,813,466 Cambridge Income Corporate Class

(A shares)† 100,209,299 101,176,833 26,841,461 Signature Global Bond Fund (Class I)† 204,878,878 210,168,637 17,295,830 CI Global High Dividend Advantage

Corporate Class (A Shares)† 148,706,742 159,121,634 16,917,867 Signature Canadian Bond Fund (Class I)† 170,899,490 180,851,999 12,382,530 Signature Corporate Bond Fund (Class I)† 124,974,435 130,140,386 8,939,097 Signature Diversified Yield Fund

(Class I)† 80,943,988 89,122,800 2,015,924 Signature Dividend Corporate Class

(A Shares)† 31,550,895 32,476,539 6,899,814 Signature High Income Fund (Class I)† 77,181,103 88,317,617 8,439,860 Signature Income & Growth Fund

(Class I)† 70,136,007 76,718,327



Net Assets (100.0%) 1,132,461,410



Portfolio Series Income FundFinancial Statements (unaudited)








Net assets per classClass AClass FClass I

Net assets per unit Class AClass FClass I


Class AClass FClass I

1,068,095 908,48959,806 80,618

- -- -- -- -

- -- -- -

7,318 6,833- -- -

3,060 3,6801,138,279 999,620

- -- -- -

- -- -- -

1,168 1,480- -- -

4,650 4,1295,818 5,609

1,132,461 994,011

1,009,481 863,857- -

754,154 637,5416,321 4,008

371,986 352,462

11.15 11.1411.07 11.0610.55 10.53

67,635,754 57,239,031570,954 362,447

35,271,295 33,462,587











Increase (decrease) in net assets from operations per classClass AClass FClass I


Class AClass FClass I

- -316 33

- -- -

13,868 15,6023,318 -

- -17,502 15,635

5,714 2,644591 405

- -899 307

7,204 3,35610,298 12,279

4,038 5,888- -- -- 4,622

13,982 (22,872)18,020 (12,362)28,318 (83)

16,324 (2,115)148 1

11,846 2,031

0.27 (0.05)0.31 -0.34 0.07


2012 2011

– 34 –

Portfolio Series Income FundFinancial Statements (unaudited)














637,541 445,641

164,432 109,28114,736 10,042(63,708) (54,359)115,460 64,964

(7,402) (128)(7,769) (8,700)

- (1,503)(15,171) (10,331)16,324 (2,115)

754,154 498,159

4,008 3,429

2,559 765126 85(383) (765)

2,302 85

(64) (2)(73) (74)

- (13)(137) (89)148 1

6,321 3,426

352,462 321,641

25,770 19,43411,321 10,150(18,092) (15,806)18,999 13,778

(5,622) (187)(5,699) (8,486)

- (1,477)(11,321) (10,150)11,846 2,031

371,986 327,300


2012 2011






994,011 770,711

192,761 129,48026,183 20,277(82,183) (70,930)136,761 78,827

(13,088) (317)(13,541) (17,260)

- (2,993)(26,629) (20,570)28,318 (83)

1,132,461 828,885

Statements of Changes in Net Assets (cont’d)for the periods ended September 30, 2012 (in $000’s)

2012 2011

Portfolio Series Income FundFinancial Statements – Supplementary Schedules (unaudited)

– 35 –





2012 2011

57,239,031 40,150,58014,805,022 9,898,0871,327,036 909,861(5,735,335) (4,920,807)67,635,754 46,037,721

362,447 310,002231,825 69,35911,406 7,717(34,724) (69,419)570,954 317,659

33,462,587 30,190,2642,452,303 1,830,6571,077,978 957,552(1,721,573) (1,487,148)35,271,295 31,491,325


Annual management fee rateClass AClass FClass I

Annual fixed administration fee rateClass AClass FClass I

1.650.90

Paid directly by investor

0.170.17

-




Portfolio Series Income FundFund Specific Financial Instruments Risks (Note 11) (unaudited)



Categories Net Assets (%)Signature Global Bond Fund (Class I) ...................................................................................... 18.4Signature Canadian Bond Fund (Class I) ................................................................................. 16.0CI Global High Dividend Advantage Corporate Class (A Shares) ........................................... 14.1Signature Corporate Bond Fund (Class I) ................................................................................ 11.5Cambridge Income Corporate Class (A shares)....................................................................... 8.9Signature Diversified Yield Fund (Class I) ............................................................................... 7.9Signature High Income Fund (Class I) ..................................................................................... 7.8Signature Income & Growth Fund (Class I) ............................................................................. 6.8Other Net Assets (Liabilities) .................................................................................................. 5.7Signature Dividend Corporate Class (A Shares) ..................................................................... 2.9


Categories Net Assets (%)CI Global Bond Fund (Class I) .................................................................................................. 19.1 Signature Canadian Bond Fund (Class I) ................................................................................. 16.9 CI Global High Dividend Advantage Corporate Class (A Shares) .......................................... 12.9 Signature Corporate Bond Fund (Class I) ................................................................................ 11.8 Signature High Income Fund (Class I) ..................................................................................... 11.1 Signature Income & Growth Fund (Class I) ............................................................................ 8.7 Other Net Assets (Liabilities) .................................................................................................. 8.6 Signature Diversified Yield Fund (Class I) ............................................................................... 8.2 Signature Dividend Corporate Class (A Shares) .................................................................... 2.7


– 36 –



Portfolio Series Maximum Growth FundStatement of Investment Portfolio as at September 30, 2012 (unaudited)

– 37 – CIG - 2603


FUNDS (99.2%) 728,058 Black Creek International Equity Corporate



Class (A Shares)† 17,597,644 17,957,117 1,458,198 Cambridge Global Equity Corporate Class





(A Shares)† 10,572,117 10,680,751 877,171 CI Canadian Small/Mid Cap Fund

(Class I)† 9,233,619 11,183,926 1,140,407 CI International Value Corporate Class

(A Shares)† 13,829,809 11,860,236 441,503 Harbour Corporate Class (A Shares)† 10,122,768 11,121,454 988,631 Harbour Voyageur Corporate Class

(A Shares)† 11,200,000 11,131,990 877,413 Signature Emerging Markets Corporate

Class (A Shares)† 12,814,281 12,283,788 1,396,921 Signature High Yield Bond Corporate

Class (A shares)† 14,053,021 14,472,098 1,158,747 Signature International Corporate Class

(A Shares)† 11,513,184 9,710,297 866,734 Signature Select Canadian Corporate

Class (A Shares)† 16,279,648 17,248,009 507,635 Synergy American Corporate Class


(A Shares)† 14,538,084 15,731,365



Net Assets (100.0%) $221,157,348



Portfolio Series Maximum Growth FundFinancial Statements (unaudited)








Net assets per classClass AClass FClass IClass AT5Class FT5Class AT8Class FT8

Net assets per unit Class AClass FClass IClass AT5Class FT5Class AT8Class FT8



219,317 225,9001,677 3,468

- -- -- -- -

- -- -- -

341 117- -- -- -

221,335 229,485

- -- -- -

- -- -- -

174 215- -- -4 3

178 218221,157 229,267

214,622 217,934- -

131,613 138,379870 961

87,803 89,324495 147

- -365 45611 -

11.21 11.3514.14 14.2310.44 10.446.74 6.99

- 10.816.12 6.449.11 9.51

11,736,929 12,193,87761,523 67,527

8,409,354 8,559,28073,442 21,048

- 1059,664 70,8561,160 12






– 39 –









Increase (decrease) in net assets from operations per classClass AClass FClass IClass AT5Class FT5Class AT8Class FT8















- -7 6- -- -- -

2,254 1,237- -

2,261 1,243

1,313 -145 161

- -(83) -

1,375 161886 1,082

601 (1,660)- (1)- -- -

(3,271) (37,072)(2,670) (38,733)(1,784) (37,651)

(1,775) (22,591)(12) (109)

1 (14,851)6 (28)1 -(6) (72)1 -

(0.15) (1.74)(0.18) (2.09)

- (1.49)0.17 (1.20)1.11 -(0.10) (1.06)0.82 -

138,379 154,539

9,381 10,012- -

(14,372) (15,778)(4,991) (5,766)

- -- -- -- -

(1,775) (22,591)131,613 126,182

961 782

189 181- -

(268) (164)(79) 17

- -- -- -- -

(12) (109)870 690

89,324 109,586

4,267 3,343- -

(5,789) (7,208)(1,522) (3,865)

- -- -- -- -1 (14,851)

87,803 90,870


2012 2011


2012 2011




– 40 –





















- -

10 -- -- -

10 -

- -- -- -- -1 -

11 -

229,267 265,567

14,231 13,611- -

(20,533) (23,206)(6,302) (9,595)

- -- -

(24) (25)(24) (25)

(1,784) (37,651)221,157 218,296

147 164

359 47- -

(10) (27)349 20

- -- -

(7) (5)(7) (5)6 (28)

495 151

- -

10 -- -

(11) -(1) -

- -- -- -- -1 -- -

456 496

15 28- -

(83) (29)(68) (1)

- -- -

(17) (20)(17) (20)(6) (72)

365 403


2012 2011



2012 2011


Portfolio Series Maximum Growth FundFinancial Statements – Supplementary Schedules (unaudited)

– 41 –









2012 2011

12,193,877 13,127,273857,202 893,479

- -(1,314,150) (1,418,007)11,736,929 12,602,745

67,527 53,02513,648 12,958

- -(19,652) (11,331)61,523 54,652

8,559,280 10,120,998425,658 323,169

- -(575,584) (696,680)

8,409,354 9,747,487

21,048 21,51653,975 6,275

- -(1,581) (3,946)73,442 23,845

10 -979 -12 -

(1,001) -- -

70,856 68,1792,434 3,886

- -(13,626) (4,050)59,664 68,015

12 -1,118 -

30 -- -

1,160 -


Annual management fee rateClass AClass FClass IClass AT5Class FT5Class AT8Class FT8

Annual fixed administration fee rateClass AClass FClass IClass AT5Class FT5Class AT8Class FT8

2.001.00

Paid directly by investor2.001.002.001.00

0.220.22

-0.220.220.220.22




Portfolio Series Maximum Growth FundFund Specific Financial Instruments Risks (Note 11) (unaudited)



Categories Net Assets (%)Cambridge Canadian Equity Corporate Class (A Shares)........................................................ 8.0Signature Select Canadian Corporate Class (A Shares) ......................................................... 7.7Synergy Canadian Corporate Class (A Shares) ....................................................................... 7.1Cambridge Global Equity Corporate Class (A Shares) ............................................................ 7.0CI American Value Corporate Class (A Shares)....................................................................... 6.7Signature High Yield Bond Corporate Class (A shares) .......................................................... 6.5CI American Managers® Corporate Class (A Shares) ........................................................... 6.1Signature Emerging Markets Corporate Class (A Shares)...................................................... 5.6Cambridge American Equity Corporate Class (A Shares) ....................................................... 5.5CI International Value Corporate Class (A Shares) ................................................................. 5.4CI Canadian Small/Mid Cap Fund (Class I) ............................................................................. 5.1Harbour Voyageur Corporate Class (A Shares) ....................................................................... 5.0Harbour Corporate Class (A Shares)........................................................................................ 5.0CI Canadian Investment Corporate Class (A Shares).............................................................. 4.8Signature International Corporate Class (A Shares) ............................................................... 4.4Black Creek International Equity Corporate Class (A Shares) ................................................ 3.7CI American Small Companies Corporate Class (A Shares) ................................................... 3.1Synergy American Corporate Class (A Shares) ....................................................................... 2.5Other Net Assets (Liabilities) .................................................................................................. 0.8


Categories Net Assets (%)Signature Select Canadian Corporate Class (A Shares) ........................................................ 13.5 CI Canadian Investment Corporate Class (A Shares).............................................................. 12.4 CI American Value Corporate Class (A Shares)....................................................................... 7.6 Harbour Corporate Class (A Shares) ...................................................................................... 7.2 Cambridge Global Equity Corporate Class (A Shares) ............................................................ 7.2 Synergy Canadian Corporate Class (A Shares) ....................................................................... 7.2 CI International Value Corporate Class (A Shares) ................................................................ 7.0 CI International Corporate Class (A Shares) .......................................................................... 6.5 CI Emerging Markets Corporate Class (A Shares) .................................................................. 6.4 CI American Managers® Corporate Class (A Shares) ........................................................... 6.1 CI Canadian Small/Mid Cap Fund (Class I) ............................................................................. 5.8 Cambridge American Equity Corporate Class (A Shares) ....................................................... 5.7 CI American Small Companies Corporate Class (A Shares) .................................................. 3.6 Synergy American Corporate Class (A Shares) ...................................................................... 2.3 Other Net Assets (Liabilities) .................................................................................................. 1.5

For details relating to other price risk, credit risk, currency risk, interest rate risk and fair valuehierarchy, refer to the audited annual financial statements as at March 31, 2012, as the Fund'sexposure to those risks remains unchanged.und (Class I)3.

– 42 –



– 43 –

CI Mutual FundsNotes to the Financial Statements as at September 30, 2012 (unaudited)


1. THE FUNDS

The following funds are open-ended mutual fund trusts created under the laws of Ontario by declarations of trust. “Inception Date” is the date upon which units of a class of a Fund were created under prospectus.

Inception Date:

Class A Class C Class E Class F Class I Insight Class O Class Z

CI Funds

Cambridge American Equity Fund May 25, 89 - - Jul. 17, 00 Jul. 31, 01 - - -

Cambridge Income Fund Dec. 29, 11 - Dec. 29, 11 Dec. 29, 11 - - Dec. 29, 11 -

CI Alpine Growth Equity Fund May 1, 97 - - Dec. 13, 99 - - - -

CI American Small Companies Fund Sep. 9, 86 - - Jul. 17, 00 Jul. 31, 01 - - -

CI American Value Fund May 27, 57 - Jul. 27, 11 Aug. 30, 00 Nov. 1, 96 Jul. 15, 03 Jul. 27, 11 -

CI Canadian Investment Fund Nov. 16, 32 - Jul. 27, 11 Aug. 30, 00 Nov. 1, 96 Jul. 15, 03 Jul. 27, 11 -

CI Canadian Small/Mid Cap Fund Nov. 1, 92 - - Dec. 13, 99 Jun. 20, 05 - - -

CI Global Fund Feb. 28, 86 - - Jul. 17, 00 Jul. 31, 01 Jul. 15, 03 - -

CI Global High Dividend Advantage Fund Jan. 23, 06 - Jul. 27, 11 Feb. 23, 06 Feb. 23, 06 - Jul. 27, 11 -

CI Global Small Companies Fund Apr. 7, 93 - - Jul. 17, 00 Jul. 31, 01 Jul. 15, 03 - -

CI Global Value Fund Jun. 12, 96 - - Jul. 17, 00 Jul. 31, 01 - - -

CI Income Advantage Fund Sep. 17, 10 Sep. 17, 10 - Sep. 17, 10 Jul. 13, 10 - - -

CI International Value Fund Jun. 12, 96 - - Jul. 31, 01 Jul. 31, 01 Jul. 15, 03 - -

CI Money Market Fund Oct. 1, 90 - Jul. 27, 11 Jul. 31, 01 Jul. 31, 01 Jul. 15, 03 Jul. 27, 11 Jul. 14, 10

CI Pacific Fund Oct. 31, 81 - - Jul. 17, 00 Jun. 20, 05 - - -

CI US Money Market Fund Jan. 30, 95 - - - - - - -

Class A Class F Class I Class W

Portfolio Select Series

Select Canadian Equity Managed Fund - - Nov. 22, 06 -

Select International Equity Managed Fund - - Nov. 22, 06 -

Select Staging Fund Nov. 7, 05 Nov. 7, 05 Nov. 7, 05 Nov. 7, 05

Select U.S. Equity Managed Fund - - Nov. 22, 06 -

Class A Class E Class F Class I Class O Class Z

Harbour Funds

Harbour Fund Jun. 27, 97 Jul. 27, 11 Jul. 17, 00 Jul. 31, 01 Jul. 27, 11 -

Harbour Growth & Income Fund Jun. 27, 97 Jul. 27, 11 Jul. 31, 01 Jul. 31, 01 Jul. 27, 11 Jul. 15, 03

Class A Class AT6 Class D Class E Class F Class I Insight Class O Class U Class X Class Y Class Z

Signature Funds

Signature Canadian Balanced Fund Jun. 25, 97 Sep. 9, 12 Sep. 9, 12 - Jul. 17, 00 Jul. 15, 03 - - Jul. 18, 09 - Jul. 18, 09 Jun. 20, 05

Signature Canadian Bond Fund Jan. 20, 93 - - Jul. 27, 11 Jul. 17, 00 Jul. 31, 01 Jul. 15, 03 Jul. 27, 11 - - - -

Signature Canadian Resource Fund Apr. 11, 97 - - - Jul. 31, 01 - - - - - - -

Signature Corporate Bond Fund Dec. 16, 01 - - Jul. 27, 11 Jul. 15, 03 Jul. 15, 03 Jul. 15, 03 Jul. 27, 11 - - - -

Signature Diversified Yield Fund Nov. 10, 09 - - Jul. 27, 11 Nov. 10, 09 Nov. 10, 09 - Jul. 27, 11 - - - -

Signature Dividend Fund Oct. 29, 96 - - Jul. 27, 11 Jul. 31, 01 Jul. 15, 03 - Jul. 27, 11 - Jul. 15, 03* Jul. 15, 03 Jul. 15, 03

Signature Emerging Market Fund

(formerly CI Emerging Markets Fund) Sep. 10, 91 - - - Jul. 17, 00 Jul. 31, 01 - - - - - -

Signature Global Bond Fund

(formerly CI Global Bond Fund) Aug. 31, 92 - - Jul. 27, 11 Jul. 17, 00 Jul. 31, 01 Jul. 15, 03 Jul. 27, 11 - - - -

Signature Global Income & Growth Fund Feb. 22, 07 - - Jul. 27, 11 Feb. 22, 07 Feb. 22, 07 - Jul. 27, 11 - - - -

Signature High Income Fund Dec. 18, 96 - - Jul. 27, 11 Jul. 31, 01 Aug. 28, 02 - Jul. 27, 11 - - - -

Signature High Yield Bond Fund Dec. 29, 11 - - Jul. 26, 12 Dec. 29, 11 Dec. 29, 11 - Jul. 26, 12 - - - -

Signature Income & Growth Fund Nov. 13, 00 Sep. 9, 12 - Jul. 27, 11 Nov. 13, 00 Jun. 20, 05 - Jul. 27, 11 - - - -

Signature International Fund

(formerly CI International Fund) Aug. 5, 99 - - - Jul. 17, 00 Jul. 13, 03 Jul. 15, 03 - - - - -

Signature Select Canadian Fund May 13, 98 - - Jul. 27, 11 Jul. 17, 00 Jul. 31, 01 Jul. 15, 03 Jul. 27, 11 - - - Jun. 20, 05

Signature Select Global Fund Jul. 14, 10 - - - Jul. 14, 10 Nov. 8, 06 - - - - - -

Signature Short-Term Bond Fund May 31, 76 - - - Nov. 17, 00 Nov. 1, 96 - - - - - -

*These Classes are no longer available for purchase.

– 44 –



Inception Date: (cont’d)

Class A Class F Class I

Synergy Funds

Synergy American Fund Aug. 31, 92 Jul. 17, 00 Jul. 31, 01

Synergy Tactical Asset Allocation Fund Sep. 18, 98 Nov. 13, 00 Aug. 22, 02

Class A Class AT5 Class AT6 Class AT8 Class F Class FT5 Class FT8 Class I Class U Class UT6 Class Y Class Z

Portfolio Series Funds

Portfolio Series Balanced Fund Nov. 9, 88 Sep. 17, 07 - Sep. 17, 07 Aug. 30, 00 Sep. 17, 07 Sep. 17, 07 Oct. 31, 96 - - - -

Portfolio Series Balanced Growth Fund Dec. 17, 01 Sep. 17, 07 Sep. 9, 12 Sep. 17, 07 Dec. 17, 01 - Sep. 17, 07 Jun. 20, 05 - - - -

Portfolio Series Conservative Balanced Fund Dec. 17, 01 - Sep. 9, 12 - Dec. 17, 01 - - Jun. 20, 05 - - - -

Portfolio Series Conservative Fund Dec. 1, 97 - Sep. 9, 12 - Aug. 30, 00 - - Dec. 1, 97 Sep. 9, 12 Sep. 9, 12 Jul. 14, 10 Jul. 14, 10

Portfolio Series Growth Fund Dec. 17, 01 Sep. 17, 07 Sep. 9, 12 Sep. 17, 07 Dec. 17, 01 - Sep. 17, 07 Aug. 28, 02 - - - -

Portfolio Series Income Fund Dec. 1, 97 - - - Aug. 30, 00 - - Dec. 1, 97 - - - -

Portfolio Series Maximum Growth Fund Dec. 17, 01 Sep. 17, 07 - Sep. 17, 07 Dec. 17, 01 - Sep. 17, 07 Jun. 20, 05 - - - -

Effective as of close of business on September 7, 2012, the following Funds were merged:

The Manager adopted the acquisition method of accounting for the merger of the Funds. Under this method

one of the Funds is identified as the acquiring Fund, and is referred to as the “Continuing Fund” and any other

Fund involved in the merger is referred to as the “Terminating Fund”. This identification is based on a

comparison of the relative net asset value of the Funds as well as consideration of the continuation of such

aspects of the Continuing Fund as: investment objectives and practices and type of portfolio securities.

Effective as of the close of business on September 7, 2012, the Continuing Funds acquired all of the assets of

the corresponding Terminating Funds in exchange for units in the Continuing Funds. The value of the units of

the Continuing Funds issued in connection with these mergers, were equal to the net assets transferred from

the respective Terminating Funds. The cost associated with the mergers was borne by the Manager.

The Terminating Funds’ results are not included in these financial statements.

The CI Global High Dividend Advantage Fund entered into a forward purchase agreement (the "Forward

Purchase Agreement") with National Bank of Canada. Under the Forward Purchase Agreement, the Fund agrees

to buy securities from the National Bank of Canada in return for a purchase price of the National Bank of

Canada Global AA Units (“Underlying Account”). The Fund’s restricted cash subject to forward agreement was

deposited with National Bank of Canada and pledged to the counterparty as security for performance of the

Fund of its obligations under the forward agreement. Through the forward agreement the Fund provides

unitholders with exposure to the performance of the Underlying Account. The Underlying Account consists of

dividend paying common and preferred shares, debentures, income trusts, equity-related securities and

convertible securities issued by issuers anywhere in the world. However, neither the Fund nor the unitholders

will have any ownership interest in the Underlying Account.

The Signature Diversified Yield Fund entered into a forward purchase agreement (the "Forward Purchase

Agreement") with the Bank of Montreal. Under the Forward Purchase Agreement, the Fund agrees to buy

securities from the Bank of Montreal in return for a purchase price of the Signature Diversified Yield Trust

(“Underlying Trust”). The Fund’s restricted cash subject to forward agreement was deposited with Bank of

Montreal and pledged to the counterparty as security for performance of the Fund of its obligation under the

forward agreement. Through the forward agreement the Fund provides unitholders with exposure to the

performance of the Underlying Trust. The Underlying Trust consists of fixed income and high-yielding equity

securities issued by issuers anywhere in the world. However, neither the Fund nor the unitholders will have any

ownership interest in the Underlying Trust.

The CI Income Advantage Fund entered into a forward purchase agreement (the "Forward Purchase


securities from the Bank of Montreal in return for a purchase price of the Select Income Advantage Managed

Trust (“Underlying Trust”). The Fund’s restricted cash subject to forward agreement was deposited with Bank

of Montreal and pledged to the counterparty as security for performance of the Fund of its obligation under the


performance of the Underlying Trust. The Underlying Trust consists of investment grade fixed income securities,

such as bonds, debentures of governments and corporations issued by issuers anywhere in the world. However,

neither the Fund nor the unitholders will have any ownership interest in the Underlying Trust.

The Cambridge Income Fund entered into a forward purchase agreement (the "Forward Purchase Agreement")

with the Bank of Montreal. Under the Forward Purchase Agreement, the Fund agrees to buy securities from the

Bank of Montreal in return for a purchase price of the Cambridge Income Trust (“Underlying Trust”). The Fund’s

restricted cash subject to forward agreement was deposited with Bank of Montreal and pledged to the

counterparty as security for performance of the Fund of its obligation under the forward agreement. Through

the forward agreement the Fund provides unitholders with exposure to the performance of the Underlying Trust.

Terminating Funds

Castlerock Canadian Money Market Fund

Castlerock Canadian Balanced Fund

Castlerock Canadian Bond Fund

Castlerock Global High Income Fund

CI International Balanced Fund

Castlerock Total Return Fund

Signature Mortgage Fund

Castlerock Balanced Growth Portfolio

Castlerock Balanced Portfolio

Castlerock Conservative Portfolio

Castlerock Growth Portfolio

Continuing Funds

CI Money Market Fund

Signature Canadian Balanced Fund

Signature Canadian Bond Fund

Signature Corporate Bond Fund

Signature Global Income & Growth Fund

Signature Income & Growth Fund

Signature Short-Term Bond Fund

Portfolio Series Balanced Growth Fund

Portfolio Series Conservative Balanced Fund

Portfolio Series Conservative Fund

Portfolio Series Growth Fund

Terminating Funds

Castlerock Canadian Money Market Fund

Castlerock Canadian Balanced Fund

Castlerock Canadian Bond Fund

Castlerock Global High Income Fund

CI International Balanced Fund

Castlerock Total Return Fund

Signature Mortgage Fund

Castlerock Balanced Growth Portfolio

Castlerock Balanced Portfolio

Castlerock Conservative Portfolio

Castlerock Growth Portfolio

Continuing Funds

CI Money Market Fund

Signature Canadian Balanced Fund

Signature Canadian Bond Fund

Signature Corporate Bond Fund

Signature Global Income & Growth Fund

Signature Income & Growth Fund

Signature Short-Term Bond Fund

Portfolio Series Balanced Growth Fund

Portfolio Series Conservative Balanced Fund

Portfolio Series Conservative Fund

Portfolio Series Growth Fund

Net Asset

Acquired

($)

12,249,976

137,717,178

127,847,952

32,490,379

172,942,506

5,267,301

48,494,812

52,182,544

44,978,403

29,609,108

20,790,024

Units

Issued

1,224,998

9,655,977

18,238,974

3,154,633

24,217,246

1,086,691

9,017,648

4,270,995

3,668,983

2,419,263

1,769,874

– 45 –



The Underlying Trust consists of fixed income and high-yielding equity investments that may include common

shares, preferred shares, real estate investment trusts and royalty trust issued by issuers anywhere in the

world. However, neither the Fund nor the unitholders will have any ownership interest in the Underlying Trust.

The Signature High Yield Bond Fund entered into a forward purchase agreement (the "Forward Purchase


securities from the Bank of Montreal in return for a purchase price of the Signature High Yield Bond Trust

(“Underlying Trust”). The Fund’s restricted cash subject to forward agreement was deposited with Bank of

Montreal and pledged to the counterparty as security for performance of the Fund of its obligation under the


performance of the Underlying Trust. The Underlying Trust consists of high-yielding corporate bonds and debt

obligations that are rated BBB or below, bank loans, convertible bonds, floating rate debt instruments and

private placements issued by issuers anywhere in the world. However, neither the Fund nor the unitholders will

have any ownership interest in the Underlying Trust.

The Statement of Investment Portfolio and Schedule of Fees for each of the Funds are as at September 30,

2012. The Statements of Net Assets are as at September 30, 2012 and March 31, 2012. The Schedule of Net

Assets per Unit and Net Asset Value per Unit and Schedule of Securities Lending are as at September 30, 2012

and 2011, where applicable. The Statements of Operations, Statements of Changes in Net Assets, Schedule of

Fund Unit Transactions and Schedule of Commissions are for the periods ended September 30, 2012 and 2011,

except for Funds established during either period, in which case the information provided relates to the period

from inception to September 30, 2012 and 2011. The Fund Specific Financial Instruments Risks for each of the

Funds are as at September 30, 2012 and March 31, 2012, where applicable.

2. SIGNIFICANT ACCOUNTING POLICIES

These financial statements have been prepared in accordance with Canadian Generally Accepted

Accounting Principles (“Canadian GAAP”). Significant accounting policies used in preparing the semi-

annual financial statements are consistant with those used in preparing the annual financial statements.

The semi-annual financial statements should be read in conjunction with the Funds’ March 31, 2012 annual

financial statements.

(a) Valuation of Investments

Canadian GAAP requires the fair value of financial instruments traded in an active market to be

measured based on an investment’s bid/ask price depending on the investment position (long/short).

For the purpose of processing unitholder transactions, net asset value is calculated based on the

closing market price of investments (referred to as “Net Asset Value”), while for financial statement

purposes net assets are calculated based on bid/ask price of investments (referred to as “Net Assets”).

In accordance with National Instrument 81-106, a comparison between the Net Asset Value per unit

and the Net Assets per unit is disclosed in the Schedule of Net Assets per Unit and Net Asset Value

per Unit.

At the financial reporting date, listed securities are valued based on the bid price for securities held

long and the ask price for securities held short. Unlisted securities are valued based on price quotations

from recognized investment dealers, or failing that, their fair value is determined by the Manager on

the basis of the latest reported information available. Fixed income securities, debentures, mortgage-

backed securities, asset-backed securities, money market investments and other debt instruments

including short-term investments, are valued at the bid quotation from recognized investment dealers.

Underlying Funds are valued on each business day at their net asset value as reported by the

Underlying Funds’ manager.

The fair value of private placements is determined by using valuation models that may be based, in

part, on assumptions that are not supported by observable market inputs. These methods and

procedures may include, but are not limited to, performing comparisons with prices of comparable or

similar securities, obtaining valuation related information from issuers and/or other analytical data

relating to the investment and using other available indications of value. These values are

independently assessed by the Manager to ensure that they are reasonable. However, because of the

inherent uncertainty of valuation, the estimated fair values for the aforementioned securities and

interests may be materially different from the values that would have been used had a ready market for

the investment existed. The fair values of private placements are affected by the perceived credit risks

of the issuer, predictability of cash flows and the length of time to maturity.

Mortgages are valued according to the present value of cash flows at interest rates for mortgages that

are similar in nature and duration.

(b) Forward Contracts

A Fund may enter into forward currency contracts. Forward currency contracts are valued on each valuation day

based on the difference between the value of the contract on the date the contract originated and the value of

the contract on the valuation day.

All unrealized gains (losses) arising from forward currency contracts are recorded as part of “Change in

unrealized appreciation (depreciation) of investments” in the Statements of Operations and “Unrealized gain

(loss) on futures and foreign currency forward contracts” in the Statements of Net Assets until the contracts

are closed out or expire, at which time the gains (losses) are realized and reported as “Realized gain (loss) on

investments” in the Statements of Operations.

Some Funds entered into forward purchase agreement (“Forward Purchase Agreement”) or forward

sale agreements (“Forward Agreement”) with counterparties (“Counterparty”).

Pursuant to each Forward Purchase Agreement the Fund agreed to purchase from the relevant

Counterparty on a future date (“Forward Date”) a specified portfolio of Canadian securities. The

amount paid by the Counterparty on the Forward Date will be determined by reference to the returns

of reference fund. During the term of the Forward Purchase Agreements, the Fund will pledge its

assets to the relevant Counterparty. The Fund’s assets will be comprised solely of its cash and its

Forward Purchase Agreement. The Fund’s cash will be deposited with and pledge to the Counterparty

as security for performance by the Fund of its obligations under the forward transaction.

Pursuant to each Forward Agreement the Fund agreed to sell to the relevant Counterparty on a future

date (“Forward Date”) a specified portfolio of Canadian securities. The amount delivered by the

Counterparty on the Forward Date will be determined by reference to the returns of to the reference fund.

(c) Futures Contracts

Futures contracts are valued on each valuation day using the bid/ask price posted on the related public

exchange. All unrealized gains (losses) arising from futures contracts are recorded as part of “Change

in unrealized appreciation (depreciation) of investments” in the Statements of Operations and

“Unrealized gain (loss) on futures and foreign currency forward contracts” in the Statements of Net

Assets until the contracts are closed out or expire, at which time the gains (losses) are realized and

reported as “Realized gain (loss) on investments” in the Statements of Operations.

(d) Options Contracts

Option contracts are valued each valuation day according to the gain or loss that would be realized if

the contracts were closed out. All unrealized gains (losses) arising from option contracts are recorded

as part of “Change in unrealized appreciation (depreciation) of investments” in the Statements of

Operations until the contracts are closed out or expire, at which time the gains (losses) are realized

and reported as “Realized gain (loss) on investments in the Statements of Operations”.

Over-the-counter options are valued using the Black Scholes model, whereas, exchange traded options

are valued at bid/ask price taken from the exchange.

– 46 –



(e) Bullion

Gold and platinum bullion are valued based on North America closing price of the spot price of the

underlying commodity. All unrealized gains (losses) arising from bullion holdings are recorded as part of

“Change in unrealized appreciation (depreciation) of investments” in the Statements of Operations until

the bullion holdings are sold, at which time the gains (losses) are realized and reported as “Realized gain

(loss) on investments in the Statements of Operations”.

(f) Short Selling

When a Fund sells a security short, it will borrow that security from a broker to complete the sale. The

Fund will incur a loss as a result of a short sale if the price of the borrowed security increases between

the date of the short sale and the date on which the Fund closes out its short position by buying that

security. The Fund will realize a gain if the security declines in price between those dates. The gains or

losses arising from short positions are reflected in the Statements of Operations as part of “Change in

unrealized appreciation (depreciation) of investments” and fair value of short positions is reflected in the

Statements of Net Assets in “Investments sold short at fair value”. When the short position is closed

out, gains or losses are realized and included in “Realized gain (loss) on investments” in the Statements

of Operations.

3. UNITHOLDERS’ EQUITY

Units issued and outstanding represent the capital of each Fund.

Each Fund is authorized to issue an unlimited number of redeemable, transferable units of each class.

Generally the Funds have no restrictions or specific capital requirements, except for the minimum subscription/

redemption amounts. The relevant changes pertaining to subscription and redemption of each Fund’s units are

disclosed in the Statements of Changes in Net Assets and the Schedule of Fund Unit Transactions.

In accordance with the objectives and risk management polices outlined in Note 11, the Funds endeavor to

invest subscriptions received in appropriate investments while maintaining sufficient liquidity to meet

redemptions through utilizing a short-term borrowing facility or disposal of investments when necessary.

In order to establish each individual Classes the Manager have made initial investments in the Funds.

As at September 30, 2012, CI Investments Inc. held investments in the Funds as follows:

2012

Funds (in $)

CI American Value Fund 114

CI Global High Dividend Advantage Fund 226

Select Staging Fund 20,000

Signature Canadian Balanced Fund 2,240

Signature Dividend Fund 3,496

Signature Global Bond Fund (formerly CI Global Bond Fund) 202

Signature Global Income & Growth Fund 112

Signature High Yield Bond Fund 21,271

Signature Income & Growth Fund 1,168,572

Portfolio Series Balanced Fund 5,440

Portfolio Series Balanced Growth Fund 10,461

Portfolio Series Conservative Fund 10,340

Portfolio Series Growth Fund 10,510

Portfolio Series Maximum Growth Fund 10,565

4. INCOME TAXES

The Funds qualify as mutual fund trusts under the provisions of the Income Tax Act (Canada) and are not

subject to tax on net income, including net realized taxable capital gains for the taxation year, which is paid or

payable to unitholders at the end of the taxation year. However, such part of each Fund’s taxable income and

net realized capital gains that is not so paid or payable will be taxable to that Fund. Income tax on net realized

capital gains not paid or payable will generally be recoverable by virtue of refunding provisions contained in

the Income Tax Act (Canada) and provincial income tax legislation, as redemptions occur. It is the intention of

each Fund to distribute all net income and sufficient net realized capital gains so that the Fund will not

generally be liable for income tax thereon. Occasionally, a Fund may distribute more than it earns. This excess

distribution is a return of capital and is not taxable to unitholders.

Net capital losses may be carried forward indefinitely to reduce future net realized capital gains. Non-capital

losses arising in taxation years 2004 and 2005 may be carried forward ten years. Non-capital losses arising in

taxation years after 2005 may be carried forward twenty years. Non-capital losses carried forward may reduce

future net investment income.

5. MANAGEMENT FEES AND OTHER EXPENSES

CI Investments Inc. is the Manager of each Fund and in consideration for management fees provides

management services required in the day-to-day operations of the Funds, including management of the

investment portfolios of the Funds.

The management fee is calculated based on the net asset values of each class of a Fund (other than Class I

and Class O) at the end of each business day. Investors in Class I and Class O units are charged management

fees directly as negotiated between the investor and the Manager.

During the period ended September 30, 2012, the Manager of the Funds absorbed a total of $1,225,000

(2011 - $1,195,000) and US$141,000 (2011 – US$170,000) in management fees due to the declining yields

generated by the following funds: CI Money Market Fund and CI US Money Market Fund, respectively.

A Fund that invests in units of Underlying Funds will not pay a duplicate management and administration fee

on the portion of assets that are invested in units of Underlying Funds. During the reporting period, a Fund may

have received a management and/or administration fee rebates from an Underlying Funds. The management

fee rebates are included in “Fees rebate receivable” and in “Fees rebate” as reflected in the Statements of Net

Assets and Statements of Operations of each Fund, as applicable.

The Manager bears all of the operating expenses of the Funds (other than certain taxes, borrowing costs and

new governmental fees) in return for fixed annual administration fees (“Administration Fees”). Administration

Fees are calculated as a fixed annual percentage of the net asset value of each class of a Fund (other than

Class I, E or O) at the end of each business day.

Refer to fund specific schedules in the financial statements for management fee and administration fee rates

applicable to each class.

The CI Global High Dividend Advantage Fund, Signature Diversified Yield Fund, CI Income Advantage Fund,

Cambridge Income Fund and Signature High Yield Bond Fund will pay to the counterparties under Forward

Agreements a fee of no more than 0.50% per annum of the market value of notional exposure to the Underlying

Account/Trusts under the Forward Agreements calculated and paid monthly.

6. SECURITIES LENDING

Certain Funds, except for CI Global High Dividend Advantage Fund, have entered into a securities lending

program with their custodian, RBC Investor Services Trust ("RBC"). The CI Global High Dividend Advantage Fund

has entered into a securities lending program with National Bank of Canada. The aggregate market value of all

securities loaned by a Fund cannot exceed 50% of the assets of the Fund, except for CI Global High Dividend

Advantage Fund as this Fund received permission from the Canadian securities regulatory authorities to deviate

from National Instrument 81-102 in order to lend up to 100% of its portfolio securities pursuant to securities

lending arrangements. The permission also allows the Fund to appoint a person, other than the Fund’s

custodian, as the agent of the Fund for arranging securities loans, and allows the Fund to pledge the collateral

it receives for each such loan. A Fund will receive collateral of at least 102% of the value of securities on loan.

Collateral will generally be comprised of cash and obligations of or guaranteed by the Government of Canada

or a province thereof, or by the United States government or its agencies, but may include obligations of other

governments with appropriate credit ratings. For those Funds participating in the program, amounts for

securities loaned and the collateral received, appear on the Fund specific schedules in the financial statements

– 47 –



and income from securities lending is included in "Securities lending" in the Statements of Operations and any

cash collateral received or cash collateral payable is included in the Statements of Net Assets in “Cash

collateral received for securities on loan“ or ”Payable for cash collateral under securities lending”.

7. REINVESTMENT OF DISTRIBUTIONS

When a Fund pays a distribution to a unitholder, it will be paid in the same currency in which the units are held.

Distributions are automatically reinvested without charge in the same Fund or paid out in cash to the

Unitholder. The Manager may change the distribution policy at its discretion.

8. RELATED PARTY TRANSACTIONS

The Bank of Nova Scotia has a significant interest in CI Financial Corp., the parent company of the Manager.

The Funds may have direct or indirect holdings in The Bank of Nova Scotia and/or CI Financial Corp. as

identified in the Statement of Investment Portfolio of each Fund, if applicable.

The Funds paid the following broker commissions to The Bank of Nova Scotia during the periods ended

September 30:

2012 2011

Funds (in $) (in $)

Cambridge American Equity Fund 138 -

CI Alpine Growth Equity Fund 2,345 2,287

CI Canadian Investment Fund 40,204 62,143

CI Canadian Small/Mid Cap Fund 42,834 54,570

CI Global Fund 2,582 -

Select Canadian Equity Managed Fund 29,568 4,182

Select International Equity Managed Fund 492 -

Select U.S. Equity Managed Fund 1,218 -

Harbour Fund - 49,535

Harbour Growth & Income Fund - 72,032

Signature Canadian Balanced Fund 11,563 25,567

Signature Canadian Resource Fund 20,869 37,236

Signature Dividend Fund 5,024 18,866

Signature Emerging Markets Fund

(formerly CI Emerging Markets Fund) 1,607 165

Signature Global Income & Growth Fund 1,387 160

Signature High Income Fund 39,842 32,540

Signature Income & Growth Fund 33,802 51,230

Signature International Fund 332 -

Signature Select Canadian Fund 32,294 57,327

Signature Select Global Fund 436 -

Synergy American Fund 2,411 -

Synergy Tactical Asset Allocation Fund 2,217 2,588

9. INTERNATIONAL FINANCIAL REPORTING STANDARDS

On February 13, 2008, the Canadian Accounting Standards Board (“AcSB”) confirmed that the use of

International Financial Reporting Standards (“IFRS”) will be required for all publicly accountable profit-

oriented enterprises for interim and annual financial statements relating to fiscal years beginning on

or after January 1, 2011. On December 12, 2011, the AcSB confirmed deferral of the IFRS changeover

date for investment funds. Based on the AcSB decision IFRS will become effective for interim and

annual financial statements relating to fiscal years beginning on or after January 1, 2014.

Based on the Manager’s current evaluation of the differences between IFRS and Canadian GAAP, the

Manager currently does not expect any impact to net asset value or net asset value per unit, at this

time, as a result of the transition to IFRS, and expects that the main impact will be on the financial

statements, where additional disclosures or changes in presentation will be required. Further updates

on the progress in the implementation of the IFRS transition plan and any changes to reporting will be

provided during the implementation period leading up to the transition date.

10. FINANCIAL INSTRUMENTS

The categorization of financial instruments is as follows: investments and derivatives are classified as held for

trading and are stated at fair value. Receivable for unit subscriptions, receivable for dividends and accrued

interest, receivable for securities sold, management fee rebate receivable and other receivables are designated

as loans and receivables. They are recorded at amortized cost which approximates their fair value due to their

short-term nature. Similarly, payable for unit redemptions, payable for securities purchased, management fees

payable, accrued expenses and other payables are designated as financial liabilities and are carried at their

amortized cost which approximates their fair value, due to their short-term nature. Financial liabilities are

generally paid within three months.

11. FINANCIAL INSTRUMENTS RISK

Risk Management

The Funds are exposed to a variety of financial instruments risks: credit risk, liquidity risk and market risk

(including interest rate risk, currency risk and other price risk). The level of risk to which each Fund is exposed

depends on the investment objective and the type of investments the Fund holds. The value of investments

within a portfolio can fluctuate daily as a result of changes in prevailing interest rates, economic and market

conditions and company specific news related to investments held by the Fund. The Manager of the Funds may

minimize potential adverse effects of these risks on the Funds’ performance by, but not limited to, regular

monitoring of the Funds’ positions and market events, diversification of the investment portfolio by asset type,

country, sector, term to maturity within the constraints of the stated objectives, and through the usage of

derivatives to hedge certain risk exposures.

Credit Risk

Credit risk is the risk that a security issuer or counterparty to a financial instrument will fail to meet its financial

obligations. The fair value of a debt instrument includes consideration for the credit worthiness of the debt

issuer. The carrying amount of debt instruments as shown on the Statement of Investment Portfolio represents

the credit risk exposure of each Fund. Credit risk exposure for derivative instruments is based on each Fund’s

unrealized gain on the contractual obligations with the counterparty as at the reporting date. The credit rating

of counterparty to a derivative instrument is disclosed in the Statement of Investment Portfolio or in Fund

Specific Financial Instruments Risks section of the financial statements of each Fund, if applicable. The credit

risk exposure of the Fund’s other assets are represented by their carrying amount as disclosed in the

Statements of Net Assets.

The Portfolio Series Funds invest only in units of underlying funds and may be exposed to indirect credit risk in

the event that the underlying fund invests in debt instruments, preferred securities and derivatives.

Credit ratings for debt securities, preferred securities and derivative instruments are obtained from Standard

& Poor’s, where available, otherwise ratings are obtained from: Moody's Investors Service, Dominion Bond

Rating Services or Canadian Bond Rating Services.

Credit ratings can be either long-term or short-term. Short-term credit ratings are generally assigned to those

obligations and derivative instruments considered short-term in nature.

The table below provides a cross-reference between the long-term credit ratings disclosed in the Credit Rating

table inclusive of the short-term credit ratings disclosed in the Derivatives Schedules in the Statement of

Investment Portfolio.

Credit Rating as per Credit Risk table Credit Rating as per Derivative Schedules

AAA/Aaa/A++ A-1+

AA/Aa/A+ A-1, A-2, A-3

A B, B-1

BBB/Baa/B++ B-2

BB/Ba/B+ B-3

B C

CCC/Caa/C++ -

CC/Ca/C+ -

C and Lower D

Not Rated WR

– 48 –



Cash balances as disclosed in the Statements of Net Assets are maintained by the custodian, RBC Investor

Services Trust. The Manager monitors the credit worthiness of the custodian on a regular basis.

All transactions executed by a Fund in listed securities are settled / paid for upon delivery using approved

brokers. The risk of default is considered minimal, as delivery of securities sold is only made once the broker

has received payment. Payment is made on a purchase once the securities have been received by the broker.

The trade will fail if either party fails to meet its obligation.

Liquidity Risk

Liquidity risk is the risk that a Fund may not be able to settle or meet its obligations, on time or at a reasonable

price. The Funds are exposed to daily cash redemption of redeemable units. Therefore, the Funds invest the

majority of their assets in investments that are traded in active markets and can be readily disposed of.

In addition, the Funds retain sufficient cash and cash equivalents positions to maintain liquidity. From time to

time, the Funds may enter into derivative contracts or invest in unlisted securities that may not trade in an

organized market and may be illiquid. Illiquid securities are identified in the Statement of Investment Portfolio

of each Fund.

Interest Rate Risk

Interest rate risk is the risk that the fair value of interest-bearing investments will fluctuate due to changes in

prevailing levels of market interest rates. As a result, the value of the Funds that invest in debt securities

and/or income trusts will be affected by changes in applicable interest rates. If interest rates fall, the fair value

of existing debt securities may increase due to the increase in yield. Alternatively, if interest rates rise, the yield

of existing debt securities may decrease which may then lead to a decrease in their fair value. The magnitude of

the decline will generally be greater for long-term debt securities than for short-term debt securities.

Interest rate risk also applies to Funds that invest in convertible securities. The fair value of these securities

varies inversely with interest rates, similar to other debt securities. However, since they may be converted into

common shares, convertible securities are generally less affected by interest rate fluctuations than other debt

securities.

The Portfolio Series Funds invest only in units of underlying funds and may be exposed to indirect interest rate

risk in the event that the underlying fund invests in interest bearing financial instruments.

Currency Risk

Currency risk arises from financial instruments that are denominated in a currency other than the functional

currency of the Funds. As a result, the Funds may be exposed to the risk that the value of securities

denominated in other currencies will fluctuate due to changes in exchange rates. The Statement of Investment

Portfolio identifies all bonds and derivative instruments denominated in foreign currencies. Equities traded in

foreign markets are also exposed to currency risk as the prices denominated in foreign currencies are converted

to the Funds’ functional currency to determine their fair value.

The Portfolio Series Funds invest only in units of underlying funds and may be exposed to indirect currency risk

in the event that the underlying fund invests in financial instruments that are denominated in a currency other

than the functional currency of the Fund.

Other Price Risk

Other price risk is the risk that the value of financial instruments will fluctuate as a result of changes in market

prices (other than those arising from interest rate risk or currency risk). The value of each investment is

influenced by the outlook of the issuer and by general economic and political conditions, as well as industry

and market trends. All securities present a risk of loss of capital.

Other assets and liabilities are monetary items that are short-term in nature and therefore are not subject to

significant other price risk.

Fair Value Hierarchy

The Funds are required to classify financial instruments measured at fair value using a fair value hierarchy.

Investments whose values are based on quoted market prices in active markets are classified as Level 1. This

level may include publicly traded equities, exchange traded and retail mutual funds, exchange traded warrants,

futures contracts, traded options, American depositary receipts (“ADRs”) and Global depositary receipts (“GDRs”).

Financial instruments that trade in markets that are not considered to be active but are valued based on quoted

market prices, dealer quotations or alternative pricing sources supported by observable inputs are classified

as Level 2. These may include fixed income securities, mortgage backed securities (“MBS”), short-term

instruments, non-traded warrants, over-the-counter options, structured notes of indexed securities, foreign

currency forward contracts and swap instruments.

Investments classified as Level 3 have significant unobservable inputs. Level 3 instruments may include private

equities, private term loans, private equity funds and certain derivatives. As observable prices are not available

for these securities, the Funds may use a variety of valuation techniques to derive the fair value.

During the six-month period some Funds’ exposure to financial statements risks including fair value hierarchy

classification changed significantly as per details disclosed in the “Fund Specific Financial Instruments Risks”

section of the financial statements. For details relating to financial instruments risk exposure including fair

value hierarchy classification for remaining Funds refer to the audited annual financial statements as at

March 31, 2012, as these Funds’ exposure to financial investments risks and fair value hierarchy classification

remained unchanged through the period.

12. COMMITMENTS

Investments in unfunded bridge financing commitments are restricted for the duration of the commitment term.

Upon expiry of the commitment term, the original investment may be allocated to the new bond issue.

As at September 30, 2012 and 2011, the following Fund’s hold the following unfunded bridge commitment.

2012 2011

Funds (in $000's) (in $000's)

Signature Corporate Bond Fund 1,587 -

Signature Global Income & Growth Fund 106 -

Signature High Income Fund 4,546 -

Signature Income & Growth Fund 690 -

Notice: Should you require additional copies of this Semi-Annual Report or have received more than one

copy, please contact CI Investments Inc. (the “Manager”) or your financial advisor.

Commissions, trailing commissions, management fees and expenses all maybe 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. 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.

The commentaries contained herein 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 these commentaries is accurate at the time of

publication. However, the Manager 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 Funds, CI Investments, CI Investments design, Harbour Funds, Global Managers and American Managers

are registered trademarks of CI Investments Inc. ™The Portfolio Select Series and Signature Funds are trademarks of CI Investments Inc.


Legal Notice

– 49 –

PS_SA_11/12E

2 Queen Street East, Twentieth Floor, Toronto, Ontario M5C 3G7 I www.ci.comHead Office / Toronto416-364-1145 1-800-268-9374

Calgary 403-205-43961-800-776-9027

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Client Services English: 1-800-563-5181French: 1-800-668-3528

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