CI Segregated Funds 2006online access to up-to-date information about your account, and allows you...

CI Segregated Funds

Annual Financial St atements | as at December 31, 2006

2006

issued by Unity Life of Canadamanaged by CI Investments Inc.

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

Equity Funds

CI Global Segregated Fund ............................................................................................................2

CI Global Value Segregated Fund..................................................................................................5

CI Harbour Segregated Fund..........................................................................................................8

CI Harbour Growth & Income Segregated Fund..........................................................................11

CI Synergy American Segregated Fund.......................................................................................14

Income Funds

CI Money Market Segregated Fund ............................................................................................17

Notes to the Financial Statements .......................................................................................20

Auditor’s Report and Legal Notice .......................................................................................21

A look inside

– 1 –

CI Investments is pleased to present the 2006 Annual Financial

Statements for your segregated fund holdings. Inside is important

information about each fund, including its financial statements for the

period and a complete list of portfolio holdings as at December 31, 2006.

If you would prefer to receive future annual and semi-annual financial

statements and other important documents electronically, you may

sign up at InvestorOnline at www.ci.com. This service gives you easy

online access to up-to-date information about your account, and

allows you to view and print documents such as this report and your

account statements, trade confirmations and tax receipts.

If you have any questions about this report or CI’s funds, please contact

your advisor or CI Client Services at 1-800-563-5181 or [email protected].

Thank you for investing with us.

ABOUT CI INVESTMENTS

Experience. Strength. Diversity.

CI Investments has been investing on behalf of Canadians since 1965

and has grown to become one of Canada’s largest fund companies,

managing about $53 billion in assets. Two million Canadians have

placed their trust in CI to help them achieve their financial goals.

CI is a corporation controlled by CI Financial Income Fund, a

diversified wealth management firm listed on the Toronto Stock

Exchange. CI Financial had $81.6 billion in fee-earning assets at

December 31, 2006.

CI Investments is known for providing the industry’s widest selection

of investment products and leading portfolio managers. Our portfolio

management expertise is available through several different platforms –

including mutual and segregated funds, managed solutions and

alternative investments. Our products are supported by a complete

suite of investment services.

CI is proud to partner with financial advisors across Canada who offer

our funds to their clients. We believe investors are most successful

when they follow a sound financial plan developed with the assistance

of a qualified advisor.

For more information on CI, please visit us online at www.ci.com.

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

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

– 2 –

CI Global Segregated FundUnderlying Fund Information (unaudited)

CIG - 025

Top 25 Holdings of CI Global Fund

No. of Shares/ Average MarketFace Amount Investment Cost ($) Value ($)

1,188,600 Microsoft Corp. 45,137,701 41,381,412 240,700 Everest Re Group Ltd. 26,238,748 27,533,990 164,298 Alstom RGPT 14,872,909 25,973,070 565,900 Commerzbank AG 18,082,146 25,130,786 557,200 Endurance Specialty Holdings Ltd. 21,369,801 23,764,823 567,600 Atlas Copco AB, Series A 15,954,434 22,235,735 809,300 Petroleum Geo-Services ASA 12,795,581 22,173,059

1,041,689 ABB Ltd. 13,299,851 21,771,187 831,900 GEA Group AG 18,125,828 21,756,301

1,255,849 Sandvik AB 16,368,951 21,283,437 289,800 Sepracor Inc. 14,154,343 20,807,401 747,200 Yara International ASA 12,979,659 19,807,897 341,900 SLM Corp. 19,307,785 19,441,584 80,687 Allianz AG, Registered Shares 13,352,129 19,239,934

472,200 Jarden Corp. 17,085,531 19,154,031 699,846 Sanpaolo IMI SpA 16,370,735 18,959,885 610,761 Statoil ASA 11,611,482 18,875,185

1,124,900 Alcatel SA 15,442,109 18,873,871 684,625 Mediobanca SpA 15,558,003 18,842,600 129,900 KBC Groupe NV 15,639,313 18,575,710 299,200 SAP AG 16,433,987 18,541,972 253,700 United Technologies Corp. 16,940,227 18,493,504 574,800 Cisco Systems Inc. 12,988,528 18,316,234

1,543,000 Hutchison Whampoa Ltd. 17,541,274 18,283,662 312,200 Xstrata PLC 15,201,866 18,177,687

Portfolio Exposure of CI Global Fund

Sector Allocation (%)

U.S.A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38.8Japan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.3Germany . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.0France . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.7Italy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.5Switzerland . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.5U.K. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.2Bermuda . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.5Norway . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.2South Korea . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.7Hong Kong . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.7Sweden . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.3Cash & Equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.2Singapore . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.5Taiwan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.1Belgium . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.0Thailand . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.6Brazil . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.6Malaysia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.5Indonesia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.4Other Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.3Israel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.1Russia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.1Argentina . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.1Peru . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.1

2006 Annual Financial Statements as at December 31, 2006

– 3 –

IncomeIncome distribution from investmentsInterest

Expenses (Note 4)(Management expense ratios – Schedule 3)

Management feesAdministrative feesInsurance feesCustody feesLegal feesAudit feesGoods and services tax

Net income (loss) for the year

Realized and unrealized gain (loss) on investments Realized gain (loss) on investments (a)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 unit – Schedule 4)

(a) Realized gain (loss) on investmentsProceeds from sale of investmentsInvestments at cost, beginning of yearInvestments purchased

Investments at cost, end of yearCost of investments soldRealized gain (loss) on investments

CI Global Segregated FundFinancial Statements

AssetsInvestments at market value CashReceivable for unit subscriptionsReceivable for securities soldReceivable for dividends and accrued interest

LiabilitiesManagement fees payableAdministration fees payableInsurance fees payablePayable for securities purchased Payable for unit redemptions

Net assets and unitholders’ equity

Net asset value per unit – Schedule 1

Number of units outstanding (Unit transactions – Schedule 2)

Statements of Operations for the years ended December 31 ($000’s)

2006 2005

10,275 11,37956 17

- -- -- -

10,331 11,396

- -- -8 -- -

17 225 2

10,306 11,394

14.47 12.55

712,362 907,927

Statements of Net Assets as at December 31 (in $000’s except for per unitamounts and units outstanding)

Statements of Changes in Net Assets for the years ended December 31 ($000’s)

2006 2005

- -1 11 1

- -5 6

97 117- -- -- -1 1

103 124(102) (123)

1 (348)

- -

1,587 1,1851,588 837

1,486 714

2,693 3,35611,962 15,657

3 911,965 15,6669,273 11,9622,692 3,704

1 (348)

Statement of Investment Portfolio as at December 31, 2006

No. of Average MarketUnits Investment Cost ($) Value ($)

692,864 CI Global Fund (Class A) 9,272,560 10,275,171

Total Investments (99.7%) 9,272,560 10,275,171

Other Assets (net) (0.3%) 30,953

Total Net Assets (100.0%) 10,306,124


The accompanying notes are an integral part of these financial statements. Percentages shown in brackets in the Statement of Investment Portfolio relate investments at market value to total net assets of the Fund.

Net assets, beginning of year

Capital transactionsProceeds from units issued Payments for units redeemed

Increase (decrease) in net assetsfrom operations

Net assets, end of year

2006 2005

11,394 13,918

498 402(3,072) (3,640)(2,574) (3,238)

1,486 71410,306 11,394

– 4 –

CI Global Segregated FundFinancial Statements – Supplementary Schedules (for the years ended December 31)


Schedule 1

Net asset value per unit, end of year ($)

Schedule 2

Unit transactions Balance, beginning of yearUnits issued for cash Units redeemedBalance, end of year

Schedule 3

Management expense ratios 1 (%)Management and operating expensesGoods and services tax expensesTotal management expense ratio

Schedule 4

Increase (decrease) in net assetsfrom operations per unit 3 ($)

2006 2005 2 2004 2003 2002

3.22 3.34 3.29 3.40 3.370.15 0.17 0.23 0.18 0.173.37 3.51 3.52 3.58 3.54

2006 2005

907,927 1,178,61237,764 33,709

(233,329) (304,394)712,362 907,927

2006 2005 2004 2003 2002

14.47 12.55 11.81 11.34 9.51

2006 2005

1.90 0.69

1 Management expense information is calculated based on expenses charged directly to the Fund plus, if applicable, expenses of the underlying mutual fund, calculated on a weighted average basis on thepercentage weighting of the underlying mutual fund and is expressed as an annualized percentage of average net assets for the year.

2 Effective fiscal 2005, the fiscal year end of the underlying mutual fund changed from December 31 to March 31, 2006. As a result, the MER of the underlying mutual fund was based on the most recent auditedMER at December 31, 2004. It is expected that the MER of the underlying mutual fund at December 31, 2005 would have been less than the prior year MER due to a decline in fees that occurred in September 2005. For fiscal 2006, the MER of the underlying mutual fund was based on the most recent MER at December 31, 2006.

3 Increase (decrease) in net assets from operations per unit is calculated by dividing the increase (decrease) in net assets from operations of the Fund by the weighted average number of units outstanding duringthe year.

For inception date of the Fund, please refer to note 1 in the Notes to the Financial Statements. The accompanying notes are an integral part of these financial statements.

– 5 –

CI Global Value Segregated FundUnderlying Fund Information (unaudited)

CIG - 024

Top 25 Holdings of CI Global Value Fund


23,900 Allianz AG, Registered Shares 4,013,880 5,698,990 256,680 Sprint Nextel Corp. 5,795,886 5,653,323 48,660 AMBAC Financial Group Inc. 4,062,589 5,053,396 12,110 Nestle SA, Registered Shares 4,073,920 5,015,620

109,730 Royal Bank of Scotland Group PLC 3,853,951 4,993,422 388,940 Cadbury Schweppes PLC 4,118,901 4,853,313 81,520 Wyeth 4,326,816 4,839,855

134,060 Microsoft Corp. 3,362,781 4,667,333 141,750 Vodafone Group PLC, ADR 3,867,105 4,591,294 149,550 GlaxoSmithKline PLC 4,268,328 4,589,351 289,000 WPP Group PLC 3,790,652 4,556,455 77,700 JPMorgan Chase & Co. 3,696,265 4,375,704

784,839 Kingfisher PLC 4,554,324 4,274,000 82,554 ING Groep NV 3,007,150 4,268,435

174,689 Diageo PLC 3,077,276 3,998,669 44,010 Molson Coors Brewing Co., Class B (USD) 3,334,655 3,922,400

319,710 Sumitomo Trust & Banking Co. Ltd. 2,564,766 3,907,536 109,840 Tyco International Ltd. 3,605,752 3,893,264 817,850 Telefonaktiebolaget LM Ericsson, Class B 2,914,110 3,851,679 33,016 Liberty Media Holding Corp., Capital Series A 3,369,412 3,771,739 80,240 Vivendi Universal SA 2,285,483 3,657,210

111,850 ImClone Systems Inc. 5,409,858 3,489,811 363,160 Nipponkoa Insurance Co. Ltd. 3,011,662 3,432,081 44,320 Torchmark Corp. 2,375,452 3,294,791 43,000 Metro AG 2,860,054 3,197,614

Portfolio Exposure of CI Global Value Fund


U.S.A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37.1U.K. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.8Japan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.3Germany . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.8France . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.2Netherlands . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.9Italy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.8Switzerland . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.7Sweden . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.8Bermuda . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.7South Korea . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.6Cash & Equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.5Taiwan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.9Thailand . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.6Singapore . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.6Hong Kong . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.5Other Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.2


– 6 –











CI Global Value Segregated FundFinancial Statements







2006 2005

2,745 3,0984 30- -- -- -

2,749 3,128

- -- -2 -- -- 312 31

2,747 3,097

12.68 11.16

216,646 277,567



2006 2005

27 211 1

28 22

- -1 2

28 37- -- -- -- -

29 39(1) (17)

115 175

- -

242 (129)357 46

356 29

736 1,6942,725 4,218

27 262,752 4,2442,131 2,725

621 1,519115 175



190,648 CI Global Value Fund (Class A) 2,131,018 2,745,328



Total Net Assets (100.0%) 2,746,979







2006 2005

3,097 4,735

98 165(804) (1,832)(706) (1,667)

356 292,747 3,097

– 7 –

CI Global Value Segregated FundFinancial Statements – Supplementary Schedules (for the years ended December 31)


Schedule 1


Schedule 2


Schedule 3


Schedule 4


2006 2005 2 2004 2003 2002

3.22 3.34 3.30 3.42 3.410.15 0.17 0.23 0.18 0.173.37 3.51 3.53 3.60 3.58

2006 2005

277,567 431,3648,485 15,286

(69,406) (169,083)216,646 277,567

2006 2005 2004 2003 2002

12.68 11.16 10.98 10.25 8.82

2006 2005

1.47 0.08





– 8 –

CI Harbour Segregated FundUnderlying Fund Information (unaudited)

CIG - 021

Top 25 Holdings of Harbour Fund


5,000,000 Royal Bank of Scotland Group PLC 179,815,144 227,532,195 2,350,000 Suncor Energy Inc. 49,816,776 215,706,500 3,600,000 Royal Bank of Canada 80,146,085 199,800,000 2,000,000 Canadian Imperial Bank of Commerce 126,958,455 196,600,000 7,500,000 BHP Billiton Ltd. 127,283,085 174,657,818 2,500,000 Toronto-Dominion Bank 98,525,308 174,300,000 2,800,000 Rio Tinto PLC 179,189,089 173,769,294 3,300,000 Bank of Nova Scotia 81,072,330 171,930,000 3,000,000 Alcan Inc. 125,319,141 170,340,000 8,400,000 Talisman Energy Inc. 45,675,803 166,320,000 2,500,000 Citigroup Inc. 143,361,525 162,358,483 2,800,000 EnCana Corp. 79,160,070 150,248,000 3,000,000 Canadian National Railway Co. 65,638,767 150,210,000

700,000 Potash Corp. of Saskatchewan 37,011,243 116,900,000 3,400,000 Canadian Oil Sands Trust 25,132,032 110,874,000 2,300,000 Petro-Canada 38,246,725 109,825,000 4,200,000 Diageo PLC 66,764,417 96,138,917 5,200,000 Ensign Energy Services Inc. 35,393,270 95,628,000 1,000,000 Morgan Stanley 68,292,951 94,943,277 2,600,000 TJX Cos. Inc. 68,943,599 86,457,495 2,600,000 Cisco Systems Inc. 57,233,908 82,850,047 2,200,000 Ross Stores Inc. 65,069,260 75,157,112 5,600,000 Yellow Pages Income Fund 77,609,982 72,072,000 2,500,000 Patterson-UTI Energy Inc. 92,492,564 67,712,523 2,100,000 AGF Management Ltd., Class B 28,290,424 58,800,000

Portfolio Exposure of Harbour Fund


Financials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27.7Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20.5Materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18.1Cash & Equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.6Consumer Discretionary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.1Consumer Staples . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.9Industrials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.2Information Technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.6Other Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.1Health Care . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.1Warrants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.1


– 9 –











CI Harbour Segregated FundFinancial Statements







2006 2005

26,117 29,67180 19

- -52 -

- -26,249 29,690

- -1 -

18 -- -

67 186 1

26,163 29,689

24.93 21.84

1,049,613 1,359,338



2006 2005

42 -5 2

47 2

- -14 12

227 240- -- 1- 12 3

243 257(196) (255)

3,817 2,207

1,005 -

(962) 3,9493,860 6,156

3,664 5,901

7,625 5,77415,718 18,7551,216 530

16,934 19,28513,126 15,7183,808 3,5673,817 2,207



1,250,215 Harbour Fund (Class A) 13,125,637 26,117,000



Total Net Assets (100.0%) 26,163,436







2006 2005

29,689 28,799

2,035 2,296(9,225) (7,307)(7,190) (5,011)

3,664 5,90126,163 29,689

– 10 –

CI Harbour Segregated FundFinancial Statements – Supplementary Schedules (for the years ended December 31)


Schedule 1


Schedule 2


Schedule 3


Schedule 4


2006 2005 2 2004 2003 2002

3.08 3.16 3.12 3.21 3.190.15 0.17 0.22 0.17 0.173.23 3.33 3.34 3.38 3.36

2006 2005

1,359,338 1,614,54786,299 115,721

(396,024) (370,930)1,049,613 1,359,338

2006 2005 2004 2003 2002

24.93 21.84 17.84 15.55 14.19

2006 2005

3.10 3.95





– 11 –

CI Harbour Growth & Income Segregated FundUnderlying Fund Information (unaudited)

CIG - 022

Top 25 Holdings of Harbour Growth & Income Fund


1,800,000 Canadian Imperial Bank of Commerce 131,023,522 176,940,000 3,000,000 Royal Bank of Canada 92,625,947 166,500,000 2,300,000 Toronto-Dominion Bank 103,092,578 160,356,000 3,500,000 Royal Bank of Scotland Group PLC 125,747,209 159,272,536 2,400,000 Rio Tinto PLC 153,530,818 148,945,109 1,550,000 Suncor Energy Inc. 61,947,092 142,274,500 2,700,000 Bank of Nova Scotia 95,927,099 140,670,000 2,000,000 Citigroup Inc. 112,229,747 129,886,786

65,000,000 Canadian Government Bond 5.57698% 12/01/2021 111,103,006 109,891,044

5,400,000 Talisman Energy Inc. 52,580,208 106,920,000 1,980,000 EnCana Corp. 66,567,003 106,246,800 4,000,000 BHP Billiton Ltd. 68,296,160 93,150,836 1,600,000 Alcan Inc. 62,561,574 90,848,000 7,000,000 Yellow Pages Income Fund 92,060,240 90,090,000 1,700,000 Canadian National Railway Co. 40,405,169 85,119,000

500,000 Potash Corp. of Saskatchewan 29,184,790 83,500,000 75,000,000 Canadian Government Bond 6% 06/01/2011 81,645,000 81,042,750 75,000,000 Canadian Government Bond 5.5% 06/01/2010 79,057,500 78,583,500 75,000,000 Canadian Government Bond 5.5% 06/01/2009 77,925,000 77,588,250 1,500,000 Petro-Canada 40,547,528 71,625,000

700,000 Morgan Stanley 46,663,423 66,460,294 1,750,000 Canadian Oil Sands Trust 16,213,082 57,067,500 2,400,000 Diageo PLC 39,339,030 54,936,524 1,500,000 Ross Stores Inc. 44,343,247 51,243,485 3,000,000 Cott Corp. (USD) 41,284,971 50,070,000

Portfolio Exposure of Harbour Growth & Income Fund


Cash & Equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34.8Financials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21.4Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.3Materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.3Government Bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.8Consumer Discretionary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.6Consumer Staples . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.0Industrials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.4Information Technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.5Other Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.9


– 12 –











CI Harbour Growth & Income Segregated FundFinancial Statements







2006 2005

23,674 24,84337 59

- -3 -- -

23,714 24,902

- -1 -

15 -- 13

35 -51 13

23,663 24,889

19.34 17.54

1,223,467 1,419,158



2006 2005

206 753 2

209 77

- -12 13

178 184- -- -- -2 2

192 19917 (122)

1,842 1,776

810 21

(283) 2,1352,369 3,932

2,386 3,810

4,238 5,09114,612 17,0951,510 832

16,122 17,92713,726 14,6122,396 3,3151,842 1,776



1,314,497 Harbour Growth & Income Fund (Class A) 13,726,444 23,674,086


Other Assets (net) (-0.1%) (10,689)

Total Net Assets (100.0%) 23,663,397







2006 2005

24,889 25,252

2,230 2,928(5,842) (7,101)(3,612) (4,173)

2,386 3,81023,663 24,889

– 13 –

CI Harbour Growth & Income Segregated FundFinancial Statements – Supplementary Schedules (for the years ended December 31)


Schedule 1


Schedule 2


Schedule 3


Schedule 4


2006 2005 2 2004 2003 2002

2.99 3.07 3.04 3.12 3.100.15 0.17 0.21 0.17 0.173.14 3.24 3.25 3.29 3.27

2006 2005

1,419,158 1,675,116120,606 179,010(316,297) (434,968)

1,223,467 1,419,158

2006 2005 2004 2003 2002

19.34 17.54 15.08 13.53 12.62

2006 2005

1.81 2.44





– 14 –

CI Synergy American Segregated FundUnderlying Fund Information (unaudited)

CIG - 023

Top 25 Holdings of Synergy American Fund


125,300 Bank of America Corp. 7,023,143 7,799,931 123,150 Corrections Corp. of America 4,281,960 6,494,426 71,900 Chevron Corp. 5,558,311 6,164,151 56,300 Merrill Lynch & Co. Inc. 4,394,028 6,111,360

116,900 Hewlett-Packard Co. 4,032,656 5,614,177 102,900 Thermo Fisher Scientific Inc. 4,436,202 5,433,723 103,200 McDonald's Corp. 4,017,587 5,334,052 146,600 CVS Corp. 4,892,905 5,283,391 104,400 Coach Inc. 3,160,265 5,229,312 117,600 Qualcomm Inc. 5,397,671 5,181,601 88,100 JPMorgan Chase & Co. 3,970,108 4,961,384

197,100 News Corp., Class A 4,183,991 4,936,290 105,200 MEMC Electronic Materials Inc. 2,567,625 4,800,830 63,200 Loews Corp - Carolina Group 3,733,242 4,769,088 97,500 Comcast Corp., Special Class A 3,661,467 4,760,922 59,500 McGraw-Hill Cos. Inc. 4,103,526 4,718,820 79,000 Wyeth 4,516,302 4,690,242 53,400 Burlington Northern Santa Fe Corp. 3,387,994 4,595,537

116,900 CB Richard Ellis Group Inc., Class A 1,622,994 4,525,144 56,500 Devon Energy Corp. 3,196,935 4,418,972 57,000 NII Holdings Inc., Class B 3,449,937 4,282,626 57,400 PepsiCo Inc. 3,842,274 4,186,190 38,900 Union Pacific Corp. 3,978,080 4,173,608

100,300 Wells Fargo & Co. 3,771,032 4,158,555 50,800 Becton Dickinson & Co. 3,497,754 4,155,001

Portfolio Exposure of Synergy American Fund


Financials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18.8Consumer Discretionary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.0Information Technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.2Industrials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.1Health Care . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.7Consumer Staples . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.7Cash & Equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.5Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.2Materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.3Telecommunication Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.5Utilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.6Other Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.4


– 15 –











CI Synergy American Segregated FundFinancial Statements







2006 2005

3,270 3,4434 46- -- -- -

3,274 3,489

- -- -2 -- -- 292 29

3,272 3,460

11.83 10.56

276,676 327,624



2006 2005

- -1 11 1

- -2 2

28 36- -- -- -- -

30 38(29) (37)

(181) (621)

- -

585 792404 171

375 134

577 1,4814,751 6,853

- -4,751 6,8533,993 4,751

758 2,102(181) (621)



235,065 Synergy American Fund (Class A) 3,992,569 3,269,759










2006 2005

3,460 4,770

107 123(670) (1,567)(563) (1,444)

375 1343,272 3,460

– 16 –

CI Synergy American Segregated FundFinancial Statements – Supplementary Schedules (for the years ended December 31)


Schedule 1


Schedule 2


Schedule 3


Schedule 4


2006 2005 2 2004 2003 2002

3.13 3.23 3.20 3.30 3.270.15 0.17 0.22 0.17 0.173.28 3.40 3.42 3.47 3.44

2006 2005

327,624 468,0499,719 12,024

(60,667) (152,449)276,676 327,624

2006 2005 2004 2003 2002

11.83 10.56 10.19 9.65 8.41

2006 2005

1.27 0.33





– 17 –

CI Money Market Segregated FundUnderlying Fund Information (unaudited)

CIG - 020

Top 25 Holdings of CI Money Market Fund


31,600,000 HSBC Bank Canada BDN 4.33% 01/23/2007 31,510,970 31,510,970 31,200,000 CIBC BA 4.31% 02/15/2007 31,028,093 31,028,093 30,100,000 Royal Bank of Canada BA 4.3% 01/02/2007 30,089,390 30,089,390 29,300,000 Province of Nova Scotia Prom. Note

4.2% 01/18/2007 29,236,178 29,236,178 28,100,000 Merrill Lynch 4.43% 11/09/2009 28,100,000 28,100,000 27,100,000 Province of Ontario T-Bill 4.18% 02/12/2007 26,964,565 26,964,565 25,600,000 Canadian Imperial Bank of Commerce,

4.44571% 07/14/2008 25,605,120 25,601,152 25,600,000 Credit Agricole SA 4.39% 10/06/2008 25,600,000 25,600,000 25,400,000 General Electric Capital Corp.,

4.48357% 08/27/2008 25,448,489 25,400,000 25,400,000 Government of Canada T-Bill

4.15% 01/11/2007 25,365,694 25,365,694 23,900,000 Transcanada Pipelines 4.34% 01/19/2007 23,843,323 23,843,323 22,800,000 Bank of Montreal BDN 4.3% 01/24/2007 22,733,066 22,733,066 22,400,000 Bear Stearns Co. Inc., 4.46286% 10/02/2009 22,400,000 22,400,000 22,150,000 Alcan Aluminum Ltd. 4.38% 01/16/2007 22,105,042 22,105,042 19,500,000 Government of Canada T-Bill

4.17% 03/08/2007 19,349,823 19,349,823 19,200,000 HBOS Treasury Services PLC

4.42143% 09/29/2009 19,200,000 19,200,000 18,800,000 HSBC Bank of Canada 4.37% 02/11/2008 18,800,000 18,800,000 18,700,000 Honda Canada Finance Inc.,

4.42143% 08/25/2008 18,700,000 18,700,000 18,100,000 Arkle Master FRN 4.41751% 11/17/2009 18,100,000 18,100,000 17,500,000 Citigroup Finance Canada Inc.,

4.41929% 10/24/2008 17,505,198 17,500,000 17,400,000 Bank of Montreal 4.40286% 09/14/2007 17,400,000 17,400,000 16,500,000 Greater Toronto Airport

4.49429% 10/24/2008 16,500,000 16,500,000 16,500,000 Greater Toronto Airports Authority

4.51286% 05/18/2007 16,507,085 16,500,000 16,100,000 Woodbridge Finance Corp.,

4.45429% 09/08/2008 16,100,000 16,100,000 15,900,000 Government of Canada T-Bill

4.16% 01/25/2007 15,853,291 15,853,291

Portfolio Exposure of CI Money Market Fund


Bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52.5Short Term Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46.7Other Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.6Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.2


– 18 –











CI Money Market Segregated FundFinancial Statements







2006 2005

1,323 2,1419 2- -- -4 5

1,336 2,148

- -- -- -3 -3 -6 -

1,330 2,148

12.35 12.04

107,696 178,444



2006 2005

53 361 1

54 37

- -1 16 8- -- -- -- -7 9

47 28

- -

- -

- -- -

47 28

2,437 2,5042,141 2,5581,619 2,0873,760 4,6451,323 2,1412,437 2,504

- -



132,263 CI Money Market Fund (Class A) 1,322,631 1,322,631










2006 2005

2,148 2,566

1,613 3,124(2,478) (3,570)

(865) (446)

47 281,330 2,148

– 19 –

CI Money Market Segregated FundFinancial Statements – Supplementary Schedules (for the years ended December 31)


Schedule 1


Schedule 2


Schedule 3


Schedule 4


2006 2005 2 2004 2003 2002

1.41 1.41 1.41 1.46 1.430.07 0.08 0.10 0.08 0.081.48 1.49 1.51 1.54 1.51

2006 2005

178,444 215,810133,290 261,168(204,038) (298,534)107,696 178,444

2006 2005 2004 2003 2002

12.35 12.04 11.89 11.79 11.61

2006 2005

0.31 0.15





1. THE FUNDSThe following funds were created by board resolution of Unity Life of Canada.

Fund Names (the “Fund”) Dated CI Global Segregated Fund October 28, 1997CI Global Value Segregated Fund October 28, 1997CI Harbour Segregated Fund October 28, 1997CI Harbour Growth & Income Segregated Fund October 28, 1997CI Synergy American Segregated Fund October 28, 1997CI Money Market Segregated Fund October 28, 1997

Each Fund invests all of its net assets in a CI mutual fund (the “Underlying Funds”).

CI Investments Inc. is the manager of each Fund and Underlying Fund.

The Statement of Investment Portfolio for each Fund is as at December 31, 2006 and theStatements of Net Assets are as at December 31, 2006 and 2005. The Statements ofOperations and Changes in Net Assets for each Fund are for the years ended December 31,2006 and 2005. The Supplementary Schedules on the Financial Statements for each Fund are foreach of the most recent five years for schedules 1 and 3, and two years for schedules 2 and 4ended December 31.

Effective December 31, 2000, the Funds were closed to new or additional contributions.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESThese financial statements have been prepared in accordance with Canadian generallyaccepted accounting principles.

The following is a summary of significant accounting policies of the Funds:

(a) Valuation of InvestmentsInvestment funds are valued on each business date at their closing net asset value asreported by the fund manager.

(b) Foreign ExchangeForeign currency amounts are translated into Canadian dollars as follows: market value ofinvestments, other assets and liabilities at the closing rate of exchange on each businessday; income, expenses and purchases, sales and settlements of investments at the rate ofexchange prevailing on the respective dates of such transactions.

(c) Investment Transactions and Income RecognitionInvestment transactions are accounted for on the trade date for financial statementpurposes and any realized gains and losses from such transactions are calculated on anaverage cost basis. Distributions from Underlying Funds are recorded on the ex-distributiondate and interest income is accrued on a daily basis.

(d) Net Asset Value Per UnitNet asset value per unit is calculated at the end of each day on which the Toronto StockExchange is open for business by dividing the net assets of each Fund by its outstanding units.

(e) Use of EstimatesThe preparation of financial statements in accordance with Canadian generally acceptedaccounting principles requires management to make estimates and assumptions thataffect the reported amounts of assets and liabilities at the reporting date and the reportedamounts of income and expenses during the reporting period. Actual results could differfrom those estimates.

(f) ComparativesCertain comparative amounts have been reclassified to conform with the current year'sfinancial statement presentation.

3. INCOME TAXESThe Funds are deemed to be inter-vivos trusts under the provisions of the Income Tax Act(Canada) and are deemed to have allocated their income to the beneficiaries. Each Fund’s netcapital gains (losses) are deemed to be those of the beneficiaries. Accordingly, the Funds arenot subject to income tax on their net income, including net realized capital gains for the year.

A Fund may elect to realize capital gains (losses) for the previous taxation year, where necessaryto allocate capital gains (losses) to redeeming beneficiaries.

4. MANAGEMENT FEES AND OTHER EXPENSESUnity Life of Canada charges the Funds an annual management fee. The management fee iscalculated on the net assets of the Funds at the end of each business day and is paid at theend of each month.

CI Investments Inc. is the manager of the Funds and the Underlying Funds, and in consideration of management fees received, provides management services required in theday-to-day operations of the Funds and the Underlying Funds including the management of theinvestment portfolios of the Underlying Funds.

In addition to the management fee payable, the Funds also bear all operating and administrativeexpenses including audit and legal fees, registry and transfer agency fees, insurance costs,custody fees, expenses relating to reporting and making distributions to unitholders, all other costsand fees imposed by statute or regulation and expenses of all communications with unitholders.

Management Expense Ratio (MER) information appears in the Supplementary Schedules to theFinancial Statements.

5. UNITS ISSUED AND OUTSTANDINGUnit Transactions information appears in the Supplementary Schedules to the FinancialStatements.

6. FUTURE ACCOUNTING STANDARDSThe Canadian Institute of Chartered Accountants ("CICA") has issued Section 3855, FinancialInstruments: Recognition and Measurement, effective for interim and annual financialstatements relating to fiscal years beginning on or after October 1, 2006. The adoption of thissection will impact the valuation and disclosure of the net asset value ("NAV") of the Funds, andthe way transaction costs are recorded for financial reporting purposes.

The Funds are not expected to be impacted. The new standards are not expected to have amaterial impact to the financial statements of the underlying mutual funds.

Section 3855 also requires that transaction costs, such as brokerage commissions, incurred inthe purchase and sale of securities be charged to net income in the period. Prior to this newsection, these costs have been added to the cost of the securities purchased or deducted fromthe proceeds of sale. Adoption of this policy is not expected to have a material impact to thefinancial statements and does not impact the daily price of the Funds.

On January 1, 2007, the Funds adopted Section 3855 on a prospective basis for financialreporting purposes.

The Canadian Securities Administrators have granted temporary relief to investment fundsfrom complying with Section 3855, for the purpose of calculating and reporting of NAV (otherthan for financial reporting purposes) until September 30, 2007, to permit review of thesuitability of these financial reporting requirements for purposes other than the financialstatements, such as the purchase and redemption price of units of an investment fund.

Notes to the Financial Statements - CI Segregated Funds

2006 Annual Financial Statements as at December 31, 2006 – 20 –

MANAGEMENT’S RESPONSIBILITY FOR FINANCIAL REPORTING

The accompanying financial statements have been prepared by management of the Funds, andapproved by the Board of Directors of Unity Life of Canada. Management is responsible for theinformation and representations contained in these financial statements and other sections ofthis report.

CI Investments Inc. maintains appropriate processes to ensure that relevant and reliablefinancial information is produced. The financial statements have been prepared in accordancewith accounting principles generally accepted in Canada and include certain amounts that arebased on estimates and judgments. The significant accounting policies which managementbelieves are appropriate for the Funds are described in Note 2 to the financial statements.

PricewaterhouseCoopers LLP are the external auditors of the Funds, appointed by Unity Life ofCanada. They have audited the financial statements in accordance with Canadian generallyaccepted auditing standards to enable them to express to the unitholders their opinion on thefinancial statements. Their audit report is set out at the right.

Chief Financial OfficerUNITY LIFE OF CANADA

Chief Executive OfficerUNITY LIFE OF CANADA

AUDITORS’ REPORT

To the Board of Directors of Unity Life of Canada and to the unitholders of the CI SegregatedFunds listed in Note 1 to the financial statements (the “Funds”)

We have audited the Statement of Investment Portfolio of each of the Funds as at December 31, 2006, the Statements of Net Assets of each of the Funds as at December 31, 2006and 2005 and the Statements of Operations and Changes in Net Assets for the years endedDecember 31, 2006 and 2005. These financial statements are the responsibility of the Funds'management. Our responsibility is to express an opinion on these financial statements based onour audits.

We conducted our audits in accordance with Canadian generally accepted auditing standards.Those standards require that we plan and perform an audit to obtain reasonable assurancewhether the financial statements are free of material misstatement. An audit includes examining,on a test basis, evidence supporting the amounts and disclosures in the financial statements.An audit also includes assessing the accounting principles used and significant estimatesmade by management, as well as evaluating the overall financial statement presentation.

In our opinion, these financial statements present fairly, in all material respects, the financialposition of each of the Funds as at December 31, 2006 and 2005 and the results of each of theiroperations and the changes in each of their net assets for the years then ended in accordancewith generally accepted accounting principles.

PRICEWATERHOUSECOOPERS LLPChartered Accountants

Toronto, OntarioMarch 8, 2007

Notes to the Financial Statements - CI Segregated Funds

2006 Annual Financial Statements as at December 31, 2006 – 21 –

Head Office2 Queen Street East, Twentieth FloorToronto, Ontario M5C 3G7Tel: 416-364-1145Toll Free: 1-800-268-9374English Client Services Team: 1-800-563-5181French Client Services Team: 1-800-668-3528

Sales OfficesCalgary Tel: 403-205-4396 Toll Free: 1-800-776-9027Halifax Tel: 902-422-2444 Toll Free: 1-888-246-8887Montreal Tel: 514-875-0090 Toll Free: 1-800-268-1602Vancouver Tel: 604-681-3346 Toll Free: 1-800-665-6994CI Teleservice: 1-800-275-3672 Automated account informationE-mail: [email protected] • www.ci.com CI

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