Semi-Annual Financial Statement– as at … business conduct. The CI Code of Ethics and Conduct...

Semi-Annual Financial Statement – as at September 30, 2011

A look inside

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

About the CI Funds Board of Governors and

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

Equity Funds

Synergy American Fund ............................................................................................................ 3

Balanced Funds

Synergy Tactical Asset Allocation Fund ................................................................................... 9

Notes to the Financial Statements .................................................................................... 18

Legal Notice ......................................................................................................................... 24

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 an

auditor has not reviewed the Semi-Annual Financial Statements, this must be disclosed in an

accompanying notice.

The Funds’ independent auditors have not performed a review of these Semi-Annual Financial

Statements in accordance with standards established by the Canadian Institute of Chartered

Accountants.

– 1 –

Enclosed are the Financial Statements for your CI Investments

mutual funds for the six months ending September 30, 2011. Inside is

important information about each fund, including its financial

statements 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.

ABOUT CI INVESTMENTS

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 $67 billion on behalf of 1.7 million Canadians. CI is a

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

with $88.5 billion in fee-earning assets at September 30, 2011.

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

– 2 –

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

period ended September 30, 2011 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 2011 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 2011, 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 2011. In November 2011, the Board of Governors received and accepted the Semi-Annual

Financial Statements of the Funds.

Stuart P. Hensman

Chair, Board of Governors

November, 2011

Letter from the CI Funds Board of Governors

Semi-Annual Financial Statements as at September 30, 2011

INDUSTRIALS (11.0%) 32,600 BE Aerospace Inc. 1,138,173 1,131,408 30,200 Chicago Bridge & Iron Co., NV 953,955 906,614 24,600 Corrections Corp. of America 592,053 585,334 7,100 Cummins Inc. 663,347 607,953

26,100 Eaton Corp. 1,066,090 971,480 5,900 FedEx Corp. 508,325 418,248

18,900 Honeywell International Inc. 1,002,311 870,293 17,700 Kansas City Southern de Mexico 677,574 926,540 8,300 Polypore International Inc. 515,299 491,378

18,800 Tyco International Ltd. 843,203 802,235 18,900 Union Pacific Corp. 1,084,755 1,618,947 18,100 WESCO International Inc.* 853,859 635,953

9,898,944 9,966,383 HEALTH CARE (10.9%)

9,800 Allergan Inc. 773,278 846,234 32,600 Allscripts Healthcare Solutions Inc. 603,851 615,765 17,300 Baxter International Inc. 985,859 1,018,394 33,100 Bristol-Myers Squibb Co. 892,460 1,088,044 9,500 Celgene Corp. 625,161 616,591

83,200 Dynavax Technologies Corp. 234,487 160,466 17,100 Humana Inc. 1,018,530 1,303,086 17,700 Sirona Dental Systems Inc. 779,537 785,351 14,400 Thermo Fisher Scientific Inc. 703,042 764,512 27,400 UnitedHealth Group Inc. 1,043,817 1,323,157 18,200 Watson Pharmaceuticals Inc. 975,191 1,302,208

8,635,213 9,823,808 CONSUMER STAPLES (10.4%)

42,200 Altria Group Inc. 931,414 1,185,468 33,700 Coca-Cola Enterprises Inc. 830,371 878,160 6,500 Colgate-Palmolive Co. 543,128 603,861

19,000 Corn Products International Inc. 978,446 781,294 40,300 CVS Corp. 1,381,910 1,418,919 19,000 Kellogg Co.* 1,010,814 1,059,118 14,500 McCormick & Co., Inc. 653,639 701,731 15,200 Mead Johnson Nutrition Co. 846,982 1,097,436 40,300 Sara Lee Corp. 747,516 690,239 15,500 The Hershey Co. 763,711 961,987

8,687,931 9,378,213 CONSUMER DISCRETIONARY (10.3%)

23,400 CBS Corp., Class B 386,475 499,876 13,400 Charter Communications Inc.* 689,416 656,923 15,200 Dollar Tree Stores Inc. 540,242 1,195,581 13,400 Harley-Davidson Inc. 479,947 481,631 15,100 Las Vegas Sands Corp. 684,259 606,678 23,700 Limited Brands Inc. 620,806 956,923 11,500 McDonald's Corp. 592,755 1,058,484 31,600 News Corp. 531,400 512,413 1,000 Priceline.com Inc. 373,086 471,688

22,600 Starbucks Corp. 807,200 883,135 8,500 Tempur-Pedic International Inc. 521,505 468,648

11,800 Tupperware Brands Corp. 713,473 664,942 30,300 Wyndham Worldwide Corp. 755,487 905,170

7,696,051 9,362,092

Synergy American FundStatement of Investment Portfolio as at September 30, 2011 (unaudited)

– 3 – CIG - 622

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


INFORMATION TECHNOLOGY (20.7%) 7,800 Apple Computer Inc. 1,661,846 3,116,746

23,900 Check Point Software Technologies Ltd. 1,093,622 1,321,737 8,500 Citrix Systems Inc. 507,642 485,844

75,400 EMC Corp. 1,530,008 1,659,714 15,700 IAC/InterActiveCorp. 594,442 650,368 8,300 International Business Machines Corp. 1,108,149 1,521,026

36,500 Microsoft Corp. 943,528 952,270 58,600 Oracle Corp. 1,706,081 1,765,334 42,600 QUALCOMM Inc. 1,962,209 2,171,483 18,200 SanDisk Corp. 763,129 769,764 16,600 Sensata Technologies Holdings NV 513,654 460,405 40,300 ServiceSource International Inc.* 694,797 557,598 18,900 SXC Health Solutions Corp. 1,128,675 1,103,467 13,700 Teradata Corp. 679,113 768,132 28,100 TIBCO Software Inc. 706,468 659,482 20,100 VeriFone Systems Inc. 922,945 738,038

16,516,308 18,701,408 FINANCIALS (12.3%)

8,900 ACE Ltd. 556,698 565,334 111,000 American Capital Ltd. 943,966 793,505 26,700 American Express Co. 1,315,192 1,256,329 34,300 Annaly Capital Management Inc. 592,348 597,900 27,200 Assurant Inc. 894,982 1,020,406 9,100 Camden Property Trust 566,074 527,388

25,700 DFC Global Corp. 609,006 588,070 33,900 First Republic Bank 995,427 821,543 6,200 Franklin Resources Inc. 708,981 620,767 6,500 IntercontinentalExchange Inc. 768,777 805,670

16,100 Signature Bank 756,905 804,646 5,000 SVB Financial Group* 291,214 193,759

28,400 The NASDAQ OMX Group Inc. 661,558 688,849 71,700 Wells Fargo & Co. 1,830,662 1,812,754

11,491,790 11,096,920 ENERGY (11.2%)

25,600 Atwood Oceanics Inc. 1,095,589 922,815 19,400 Baker Hughes Inc. 1,297,970 937,647 55,100 Canadian Oil Sands Ltd. 1,513,603 1,120,734 23,600 Carrizo Oil & Gas Inc.* 857,239 532,844 18,400 Chevron Corp. 1,577,855 1,784,801 13,500 Cooper Cameron Corp. 617,723 587,959 15,400 Ensco International PLC, ADR 689,894 652,307 18,400 HollyFrontier Corp. 622,783 505,507 24,500 Marathon Oil Corp. 746,981 554,192 5,700 Noble Energy Inc. 368,088 423,129

13,900 Occidental Petroleum Corp. 1,308,865 1,042,624 20,900 Tesoro Corp. 468,606 426,535 14,200 Vermilion Energy Inc.* 710,906 620,966

11,876,102 10,112,060

*Denotes all or part of securities on loan.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.


Synergy American FundStatement of Investment Portfolio as at September 30, 2011 (unaudited) (cont’d)

– 4 –

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.

Schedule AForeign Currency Forward Contracts (-0.7%)

Credit Rating Settlement Contract UnrealizedContracts Counterparty of the Counterparty‡ Date Rate ($) Pay Receive Gain (Loss) ($)

1 Royal Bank of Canada A-1+ 19-Oct-11 1.01 (10,614,015) US $ 10,530,377 Canadian $ (599,858) Total Foreign Currency Forward Contracts Value (599,858)

‡Credit ratings 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.



MATERIALS (4.7%) 7,500 Ashland Inc. 364,944 347,084 4,300 CF Industries Holdings Inc. 566,428 556,104 6,800 Domtar Corp. (USD) 610,661 485,541

24,800 MeadWestvaco Corp. 752,188 638,444 6,800 Randgold Resources Ltd., ADR 687,010 688,895

17,800 Silgan Holdings Inc. 642,360 685,491 5,400 SPDR Gold Trust 755,240 894,321

4,378,831 4,295,880 TELECOMMUNICATION SERVICES (3.1%)

28,700 American Tower Corp., Class A 1,477,354 1,617,575 33,500 CenturyTel Inc. 1,358,837 1,162,994

2,836,191 2,780,569 UTILITIES (1.7%)

20,000 Edison International 722,439 801,660 15,800 FirstEnergy Corp. 671,469 743,611

1,393,908 1,545,271

Commission and other portfolio transaction costs (90,656)

Total Equities (96.3%) 83,320,613 87,062,604

DERIVATIVE INSTRUMENTS

Foreign Currency Forward Contracts (-0.7%)(see Schedule A) (599,858)

Total Investments (95.6%) 83,320,613 86,462,746

Other Assets (net) (4.4%) 4,071,404

Net Assets (100.0%) 90,534,150

Synergy American FundFinancial Statements (unaudited)

– 5 –Semi-Annual Financial Statements as at September 30, 2011

AssetsInvestments at fair value*CashShort-term investmentsMargin for short salesIncome taxes recoverableDaily variation margin on derivative investmentsUnrealized gain on futures and forward currency contractsCash collateral received for securities on loan (Note 6)Swaps, swaptions and options at fair valueReceivable for unit subscriptionsReceivable for securities soldManagement fee rebate receivableReceivable for dividends and accrued interest

LiabilitiesBank overdraftManagement fees payableAccrued expensesUnrealized loss on futures and forward currency contractsSwaps, 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 I

Net assets per unit (see Schedule of Net Assets per Unit and Net Asset Value per Unit)

Class AClass FClass I

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


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

ExpensesManagement fees (Note 5)Administrative fees (Note 5)Interest expenseGoods and services tax/Harmonized sales 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 costsCapital 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 I

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


87,063 95,0074,286 5,794

- -- -- -- -- 63- -- -

56 1132,320 633

- -95 49

93,820 101,659

- -- -- -

600 -- -

2,569 1,303117 93

- -- -- -

3,286 1,39690,534 100,263

83,321 82,532- -

55,681 61,319800 925

34,053 38,019

9.94 11.406.01 6.85

11.83 13.40

5,602,014 5,379,439133,072 134,921

2,879,177 2,837,286

669 57514 11 3- -- -- -

(95) (73)589 506

602 55264 58

- -70 47

736 657(147) (151)

(2,775) (1,277)8 5

(154) (171)- -

(9,396) (744)(12,317) (2,187)(12,464) (2,338)

(8,018) (1,738)(114) (22)

(4,332) (578)

(1.45) (0.32)(0.84) (0.16)(1.53) (0.19)

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

2011 2010

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

as at as atSeptember 30, 2011 March 31, 2011

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

Synergy American FundFinancial Statements (unaudited)

– 6 –

Class ANet assets, beginning of periodCapital transactions

Proceeds from units issued Reinvested distributions 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




Total FundNet assets, beginning of periodCapital transactions




100,263 93,902

15,868 28,480- -

(13,133) (30,614)2,735 (2,134)

- -- -- -- -

(12,464) (2,338)90,534 89,430

61,319 59,105

12,105 6,458- -

(9,725) (9,324)2,380 (2,866)

- -- -- -- -

(8,018) (1,738)55,681 54,501

925 989

135 126- -

(146) (252)(11) (126)

- -- -- -- -

(114) (22)800 841

38,019 33,808

3,628 21,896- -

(3,262) (21,038)366 858

- -- -- -- -

(4,332) (578)34,053 34,088

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

2011 2010


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

2011 2010


Synergy American FundFinancial Statements – Supplementary Schedules (unaudited)

– 7 –

Class ABalance, beginning of periodUnits issued for cash Units issued for reinvested distributions Units redeemedBalance, end of period

Class FBalance, beginning of periodUnits issued for cash Units issued for reinvested distributions Units redeemedBalance, end of period

Class IBalance, beginning of periodUnits issued for cash Units issued for reinvested distributions Units redeemedBalance, end of period

Schedule of Securities Lending (Note 6)as at September 30 (in $000’s)

2011 2010

LoanedCollateral (non-cash)

3,504 4,5463,679 4,636

Schedule of Commissionsfor the periods ended September 30 (in $000’s)

2011 2010

Brokerage commissionsSoft Dollar commissions†

154 17012 19

Schedule of Fund Unit Transactions for the periods ended September 30

2011 2010

5,379,439 5,711,8771,125,614 655,216

- -(903,039) (940,371)

5,602,014 5,426,722

134,921 160,74920,819 21,263

- -(22,668) (42,016)133,072 139,996

2,837,286 2,847,211295,956 1,973,289

- -(254,065) (1,897,633)

2,879,177 2,922,867

†A portion of brokerage commissions paid was used to cover research and market data services, termed soft dollar commissions. This amount has been estimated by the Manager of the Fund.The accompanying notes are an integral part of these financial statements.


Class ANet assets per unitNet asset value per unit

Class FNet assets per unitNet asset value per unit

Class INet assets per unitNet asset value per unit

9.94 10.049.94 10.05

6.01 6.006.01 6.01

11.83 11.6611.83 11.67

Schedule of Net Assets per Unit and Net Asset Value per Unit (Note 2)as at September 30 (in $)

2011 2010

Annual management fee rateClass AClass FClass I

Annual fixed administration fee rateClass AClass FClass I

2.001.00

Paid directly by investor

0.210.21

-

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

2011

Synergy American FundFund Specific Financial Instruments Risks (Note 11) (unaudited)

The Fund’s investments were concentrated in the following segments:

as at March 31, 2011

Categories Net Assets (%)

Information Technology ........................................................................................................... 17.5Financials ................................................................................................................................. 15.5Energy ...................................................................................................................................... 14.4Industrials ................................................................................................................................ 12.2Consumer Discretionary........................................................................................................... 9.1Consumer Staples.................................................................................................................... 8.7Health Care .............................................................................................................................. 8.7Other Assets (net) .................................................................................................................... 5.1Materials.................................................................................................................................. 4.6Telecommunication Services ................................................................................................... 2.4Utilities..................................................................................................................................... 1.6Warrants .................................................................................................................................. 0.1Foreign Currency Forward Contracts ....................................................................................... 0.1

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, 2011, as the Fund’sexposure to those risks remains unchanged.

– 8 –



FINANCIALS (14.5%) (cont’d)290,000 Scotiabank Capital Trust, Series 2002-1,

Callable, 6.626% 06/30/2052†† 284,643 299,681 12,700 Sun Life Financial Inc. 382,078 316,484

200,000 Sun Life Financial Inc., 7.9% 03/31/2019 199,732 223,973 1,000,000 TD Capital Trust 10% 06/30/2108 1,393,810 1,387,550

355,000 TD Capital Trust 6.792% 12/31/2049 355,825 375,599 250,000 TD Capital Trust 7.243% 12/31/2018 257,500 300,654 23,574 The Bank of Nova Scotia†† 1,237,383 1,239,285

320,000 The Bank of Nova Scotia 6% 10/03/2018†† 320,602 344,704 6,625 TMX Group Inc. 189,175 269,638

38,500 Toronto-Dominion Bank 2,653,768 2,859,010 230,000 Wells Fargo Financial Canada Corp.,

3.97% 11/03/2014 229,991 239,831 19,224,529 19,570,383

ENERGY (12.1%) 21,150 Advantage Oil & Gas Ltd. 157,191 82,485

198,000 Advantage Oil & Gas Ltd., 5% 01/30/2015 188,589 177,309 141,771 Alliance Pipeline LP 7.181% 06/30/2023 169,334 177,426

USD 418,000 Allis-Chalmers Energy Inc., 9% 01/15/2014 418,110 435,955 1,200 AltaGas Ltd. 33,160 32,496

1,000,000 Anderson Energy Ltd., 7.25% 06/30/2017 1,000,000 750,500 9,500 Angle Energy Inc. 78,477 60,990 5,900 Artek Exploration Ltd. 12,784 9,440 5,250 Baytex Energy Corp.* 168,352 228,480 4,450 Bonavista Energy Corp. 113,894 104,041 1,200 Calfrac Well Services Ltd. 28,074 29,208 3,000 Canadian Energy Services &

Technology Corp. 28,768 31,320 37,812 Canadian Natural Resources Ltd. 1,390,171 1,159,316 13,500 Canadian Oil Sands Ltd. 400,394 274,590 12,011 Canyon Services Group Inc. 162,668 108,459 10,900 Celtic Exploration Ltd.* 202,903 245,359 3,300 Cenovus Energy Inc. 109,365 106,326

25,200 Cequence Energy Ltd. 89,666 85,176 2,230 Crescent Point Energy Corp.* 93,858 87,594 9,500 Enbridge Inc. 223,660 317,775

24,270 EnCana Corp. 781,265 487,827 1,400 Enerflex Ltd. 17,945 12,138

12,400 Fairborne Energy Ltd. 55,974 34,596 2,100 Flint Energy Services Ltd.* 30,218 20,727

1,000,000 Flint Energy Services Ltd.,7.5% 06/15/2019 990,000 975,000

1,700 GasFrac Energy Services Inc.* 17,708 12,631 7,600 Gibson Energy Inc.* 124,303 141,512

12,008 Imperial Oil Ltd. 486,272 451,981 8,900 Inter Pipeline Fund LP 98,672 142,489

2,000,000 Ivanhoe Energy Inc., 5.75% 06/30/2016 2,000,000 1,590,000 7,021 Keyera Corp. 145,135 318,753

11,600 Legacy Oil & Gas Inc. 134,625 93,264 24,675 Mullen Group Ltd. 394,656 463,150 20,900 Nexen Inc. 460,428 339,416 16,500 Open Range Energy Corp. 95,543 145,200

1,000,000 Paramount Resources Ltd., 8.25% 12/13/2017 1,007,500 1,000,000

Synergy Tactical Asset Allocation FundStatement of Investment Portfolio as at September 30, 2011 (unaudited)

– 9 – CIG - 6115


FUNDS (32.5%) 100 ETFS Palladium Trust 7,414 6,290 100 ETFS Platinum Trust 17,648 15,739

4,436,519 Synergy Global Corporate Class (Z Shares) 54,225,885 43,877,17154,250,947 43,899,200

FINANCIALS (14.5%) 1,700 Allied Properties REIT 38,711 39,406

USD 300,000 Bank of America Corp., Callable, 8% 01/30/2049 295,265 267,337

7,100 Bank of Montreal* 399,193 415,350 350,000 Brookfield Asset Management Inc.,

8.95% 06/02/2014 349,307 402,346 2,900 Canadian Apartment Properties REIT* 49,662 61,190 9,585 Canadian Imperial Bank of Commerce 691,193 700,855

380,000 Canadian Imperial Bank of Commerce 3.05% 06/03/2013 379,799 388,913

2,594 Canadian Western Bank* 49,683 66,484 1,000,000 Canadian Western Bank, FRN,

5.571% 03/22/2022 1,025,830 1,080,728 5,800 Chartwell Seniors Housing REIT 37,002 43,790 1,983 CIT Group Inc. 71,189 63,147

USD 19,274 CIT Group Inc., 7% 05/01/2014 23,958 20,607 USD 561 CIT Group Inc., 7% 05/01/2015 673 584 USD 602 CIT Group Inc., 7% 05/01/2016 694 612 USD 643 CIT Group Inc., 7% 05/01/2017 735 654 USD 57,000 CIT Group Inc., 7% 05/02/2016 65,220 57,955 USD 80,000 CIT Group Inc., 7% 05/02/2017 91,193 81,340 USD 34,000 CIT Group Inc., 7% 05/04/2015 40,485 35,371

345,000 Citigroup Finance Canada Inc., 6.75% 09/22/2014 344,696 370,782

500,000 Dundee International Real Estate Investment Trust 5.5% 01/31/2018 500,000 477,500

8,700 Endeavour Mining Corp.* 22,084 17,226 1,200 H&R REIT 20,119 25,152 3,600 Home Capital Group Inc. 133,781 156,276

14,025 IGM Financial Inc.* 597,450 622,570 13,175 Intact Financial Corp. 566,880 755,059

USD 175,000 JPMorgan Chase & Co., FRN, Callable, 7.9% 04/30/2049 167,249 188,939

350,000 Kimco North Trust III 5.18% 08/16/2013 349,044 364,232 200,000 Manulife Financial Capital Trust

6.7% 12/31/2051 207,075 206,400 63,050 Manulife Financial Corp. 1,066,256 750,295

545,000 Merrill Lynch & Co., Inc., 4.5% 01/30/2012 507,025 548,124 300,000 MI Developments Inc., 6.05% 12/22/2016^ 305,352 304,500

2,700 National Bank of Canada 175,663 188,271 24,868 Power Corporation of Canada 679,390 569,975

225,000 Power Corporation of Canada 7.57% 04/22/2019 224,874 276,491

1,800 Primaris Retail Real Estate Investment Trust 32,735 36,630 6,000 Pure Industrial Real Estate Trust 24,600 22,260

445,000 Royal Bank of Canada 3.27% 11/10/2014 444,938 463,347 210,000 Royal Bank of Canada 5.06% 07/17/2013 210,179 222,456 29,687 Royal Bank of Canada* 1,530,840 1,420,820

^Denotes illiquid securities.*Denotes all or part of securities on loan.

††CI Investments Inc., the Manager, is a corporation controlled by CI Financial Corp. The Bank of Nova Scotia has a significant interest in CI Financial Corp. Investments in The Bank of Nova Scotia are identified above.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.



– 10 –

MATERIALS (9.7%) (cont’d)1,800 Noranda Income Fund 10,836 8,964

10,900 Perseus Mining Ltd. 34,490 33,463 28,600 Potash Corp. of Saskatchewan Inc. 1,185,815 1,295,008 8,200 Quadra FNX Mining Ltd. 120,274 74,620 1,000 Russel Metals Inc. 22,326 20,750

25,000 Russel Metals Inc., Convertible, 7.75% 09/30/2016 27,512 27,000

7,600 Sandspring Resources Ltd. 21,638 11,172 29,000 SEMAFO Inc. 283,172 249,980

500,000 Sherritt International Corp., 7.75% 10/15/2015 509,295 530,792

5,400 Silver Wheaton Corp. 186,553 166,536 802 SPDR Gold Trust 122,313 132,823

26,050 Teck Resources Ltd., Class B 1,100,386 797,130 USD 500,000 Tembec Industries Inc., 11.25% 12/15/2018 485,519 500,514

2,000 Thompson Creek Metals Co., Inc.* 22,645 12,700 1,000,000 Trident Exploration Corp.,

8.25% 04/13/2018 1,000,000 932,500 4,800 Yamana Gold Inc. 68,152 68,784

13,433,226 13,097,002 CONSUMER DISCRETIONARY (7.9%)

USD 500,000 Asbury Automotive Group Inc., 7.625% 03/15/2017 508,587 500,514

USD 1,500,000 Brown Shoe Co., Inc., 7.125% 05/15/2019 1,432,232 1,328,588

1,000,000 Canadian Satellite Radio Holdings Inc., 9.75% 06/21/2018 1,020,000 1,016,250

10,400 Canadian Tire Corp., Ltd., Class A, Non-Voting Shares 588,122 592,696

USD 1,068,750 Cenage Learning Holdco Inc., 13.75% 07/15/2015 1,087,664 638,548

USD 200,000 Chrysler Group LLC 8% 06/15/2019 193,650 163,519 3,600 Cineplex Inc. 67,706 94,680 9,400 Corus Entertainment Inc., Class B 167,129 184,804 6,400 Dollarama Inc. 181,088 231,680

14,300 Gildan Activewear Inc.* 423,302 387,387 800 Las Vegas Sands Corp. 36,382 32,142

8,200 Linamar Corp. 142,236 111,028 26,785 Magna International Inc., Class A 874,926 925,154

USD 391,000 PEP Boys-Manny Moe & Jack 7.5% 12/15/2014 404,373 408,820

USD 900,000 Phillips-Van Heusen Corp., 7.75% 11/15/2023 1,024,497 996,621

1,500,000 Quebecor Media Inc., 7.375% 01/15/2021 1,500,000 1,468,750 3,000 Quebecor World Inc., Class B 79,204 99,450

300,000 Shaw Communications Inc.,5.65% 10/01/2019 299,049 320,176

16,825 Shaw Communications Inc., Class B 354,078 356,354 USD 255,000 Steinway Musical Instruments Inc.,

7% 03/01/2014 260,199 267,290 12,630 Thomson Corp. 457,067 358,187

215,000 Thomson Reuters Corp., 5.7% 07/15/2015 214,609 240,825 1,100 Torstar Corp., Class B 11,082 8,668

11,327,182 10,732,131

Synergy Tactical Asset Allocation FundStatement of Investment Portfolio as at September 30, 2011 (unaudited) (cont’d)


ENERGY (12.1%) (cont’d)700 Petrominerales Ltd. 24,289 14,371

5,400 Peyto Exploration & Development Corp. 95,494 107,298 1,600 PHX Energy Services Corp. 18,997 14,768

49,755 Precision Drilling Corp. 419,571 431,873 500,000 Precision Drilling Corp., 6.5% 03/15/2019 511,250 494,398

7,900 Progress Energy Resources Corp.* 104,685 101,515 20,275 Savanna Energy Services Corp. 138,545 147,399 1,100 ShawCor Ltd., Class A, Sub-Voting Shares 30,247 26,631 4,800 SouthGobi Energy Resources Ltd.* 69,630 31,632

56,776 Suncor Energy Inc. 1,874,180 1,514,216 290,000 Suncor Energy Inc. 5.8% 05/22/2018 249,646 334,067

4,900 Surge Energy Inc. 42,842 36,113 28,030 Talisman Energy Inc. 498,097 359,905

275,000 Terasen Gas Vancouver Island Inc., 6.05% 02/15/2038 274,810 342,068

16,082 Tourmaline Oil Corp. 362,263 493,235 27,241 Trican Well Service Ltd. 418,168 403,984 11,400 Trilogy Energy Corp. 171,666 306,546 17,300 Veresen Inc. 187,620 253,272 3,700 Vermilion Energy Inc.* 155,622 161,801 4,600 Wild Stream Exploration Inc. 33,104 39,560

17,590,388 16,347,581 MATERIALS (9.7%)

11,055 Agrium Inc. 787,794 771,086 8,500 Alamos Gold Inc. 120,195 133,195 3,800 Anvil Mining Ltd.* 19,391 29,070 6,600 AuRico Gold Inc.* 66,288 64,680 2,200 Aurizon Mines Ltd. 15,103 11,726

64,300 B2Gold Corp. 140,397 250,127 41,075 Barrick Gold Corp. 1,874,051 2,009,800 8,567 Cameco Corp. 232,477 164,572 2,700 Canam Manac Group Inc., Class A 18,954 10,422 2,400 Canfor Pulp Products Inc. 28,864 29,640 5,600 CCL Industries Inc., Class B 159,905 156,352 4,100 Chemtrade Logistics Income Fund 56,802 50,922

USD 500,000 Compass Minerals International Inc., 8% 06/01/2019 528,005 547,682

USD 500,000 Ferro Corp., 7.875% 08/15/2018 521,558 524,098 3,500 First Majestic Silver Corp. 51,864 55,720

17,150 Goldcorp Inc. 771,716 819,942 4,500 Harry Winston Diamond Corp.* 69,254 47,790 2,700 Imperial Metals Corp. 63,921 51,705

29,200 Intrepid Mines Ltd. 52,597 26,864 2,400 Kirkland Lake Gold Inc. 29,435 40,536

11,700 Labrador Iron Ore Royalty Corp. 300,608 386,802 11,100 Lundin Mining Corp. 67,908 40,515 12,900 Major Drilling Group International Inc. 143,493 130,650 2,800 Methanex Corp. 64,263 61,124 4,200 Minefinders Corp.* 60,594 60,774 2,500 Neo Material Technologies Inc. 15,242 15,950

USD 1,825,000 Neo Material Technologies Inc., 5% 12/31/2017 1,764,056 1,578,190

11,800 New Gold Inc.* 112,370 127,204 31,200 New Millenium Iron Corp. 95,195 37,128




– 11 –

ASSET BACKED SECURITIES (5.6%) (cont’d)214,000 Merrill Lynch Financial Assets Inc.,

5.843% 06/12/2035 193,820 222,581 924,000 Merrill Lynch Financial Assets Inc.,

6.45% 06/12/2035 867,618 938,880 2,824,000 Real Estate Asset Liquidity Trust

4.805% 10/12/2015 2,631,953 2,800,743 191,000 Schooner Trust 5.088% 04/12/2020 168,080 194,313

7,161,727 7,621,275 CONSUMER STAPLES (2.6%)

2,600 Alliance Grain Traders Inc. 54,530 57,252 USD 1,575,000 Central Garden and Pet Co.,

8.25% 03/01/2018 1,592,319 1,576,618 4,741 Empire Co., Ltd., Class A 237,281 271,754 2,767 George Weston Ltd. 193,431 191,310

300,000 Metro Inc., 5.97% 10/15/2035 285,885 315,038 4,100 Viterra Inc. 43,531 42,148

USD 900,000 Viterra Inc., 5.95% 08/01/2020 877,506 1,001,215 3,284,483 3,455,335

INFORMATION TECHNOLOGY (2.3%) 9,000 Alcatel-Lucent SA 43,967 26,603

35,918 CGI Group Inc. 524,403 707,944 1,000 Check Point Software Technologies Ltd. 53,773 55,303

USD 1,000,000 Earthlink Inc., 8.875% 05/15/2019 929,200 919,792 2,100 Exfo Electro-Optical Engineering Inc.* 14,532 13,314 3,600 MacDonald Dettwiler & Associates Ltd. 137,299 170,748 1,100 Mosaid Technologies Inc. 25,822 41,591

12,211 Open Text Corp.* 580,737 663,912 11,400 Research In Motion Ltd. 683,864 242,364 8,100 Sandvine Corp. 14,996 12,150 1,400 SXC Health Solutions Inc.* 75,037 81,662 1,100 VeriFone Systems Inc. 46,945 40,390

11,800 Wi-Lan Inc. 83,803 71,862 2,400 Zarlink Semiconductor Inc.* 4,516 9,504

3,218,894 3,057,139 TELECOMMUNICATION SERVICES (2.0%)

6,100 BCE Inc. 189,836 239,303 USD 1,000,000 Centel Capital Corp., 9% 10/15/2019 1,090,660 1,180,185 USD 1,000,000 ITC DeltaCom Inc., 10.5% 04/01/2016 1,007,520 1,069,160

1,900 Manitoba Telecom Services Inc. 62,309 61,598 3,600 TELUS Corp. 178,325 184,536

2,528,650 2,734,782 UTILITIES (1.3%)

500,000 Algonquin Power & Utilities Corp., 5.5% 07/25/2018 499,140 521,354

4,283 Atco Ltd., Class I 201,069 263,447 2,811 Brookfield Renewable Power Fund 44,814 72,355

200,000 Brookfield Renewable Power Inc., 5.84% 11/05/2036 200,791 188,502

200,000 Brookfield Renewable Power Inc., 6.132% 11/30/2016 200,000 221,854

2,200 Northland Inc. 31,916 35,266 285,000 Reliance LP 7.3% 04/03/2013 285,000 297,959

4,300 TransAlta Corp. 93,875 98,083 1,556,605 1,698,820



INDUSTRIALS (6.8%) 9,200 5N Plus Inc. 75,512 66,332

700,000 Air Canada 10.125% 08/01/2015 722,750 686,000 77,000 Air Canada, Class B 252,120 112,420

USD 500,000 Alliant Techsystems Inc., 6.75% 04/01/2016 502,373 525,408 170,000 AltaLink Investments LP 5.207% 12/16/2016 170,000 187,440

USD 500,000 Altra Holdings Inc., 8.125% 12/01/2016 537,600 534,580 9,800 ATS Automation Tooling Systems Inc. 66,819 59,780

186,655 Bombardier Inc., Class B, Sub-Voting Shares 1,026,869 679,424 9,755 CAE Inc. 92,002 95,892 1,100 Canadian Helicopters Group Inc. 25,600 24,420

15,197 Canadian National Railway Co. 827,648 1,059,991 6,425 Canadian Pacific Railway Ltd. 365,582 323,370

11,827 Celestica Inc. 109,548 89,530 2,800 Chorus Aviation Inc. 14,604 10,752

39,200 Eastern Platinum Ltd. 36,547 27,440 1,350 Exchange Income Corp. 27,117 25,677

14,200 Finning International Inc. 309,425 271,788 250,000 Finning International Inc., 5.16% 09/03/2013 249,985 265,851

USD 500,000 Gibraltar Industries Inc., 8% 12/01/2015 509,036 497,893 1 Greater Toronto Airports Authority

6.45% 07/30/2029 1 1 300,000 Holcim Finance Canada Inc.,

5.9% 06/21/2013 299,583 313,587 530,000 Iron Mountain Inc., 7.5% 03/15/2017 536,625 524,790 500,000 Livingston International Inc.,

10.125% 11/09/2015 520,833 520,278 4,400 Newalta Inc. 34,473 50,820 3,700 Onex Corp. 104,670 119,954 2,400 Progressive Waste Solutions Ltd. 47,463 51,768 4,100 Pure Technologies Ltd. 16,824 12,997 4,500 Rocky Mountain Dealership Inc. 45,388 39,600

1,250,000 Skylink Aviation Inc., 12.25% 03/15/2016 1,253,750 1,240,625 3,100 SNC-Lavalin Group Inc. 147,375 135,873

250,000 Superior Plus Corp., 6% 06/30/2018 234,688 179,375 2,100 The Churchill Corp., Class A* 40,855 27,321 2,600 TransForce Inc. 34,900 26,754 3,400 Wajax Corp. 114,232 108,222

19,475 WestJet Airlines Ltd. 256,975 250,448 2,100 Westshore Terminals Investment Corp. 48,721 45,948

9,658,493 9,192,349 ASSET BACKED SECURITIES (5.6%)

400,000 CCIC 2006-WEM, MBS, A2, 4.934% 01/15/2022 399,986 435,464

1,300,000 Ford Auto Securitization Trust 1.926% 06/15/2013 510,210 510,864

1,000,000 Ford Auto Securitization Trust 4.526% 03/15/2017 1,001,250 1,015,690

500,000 Merrill Lynch Financial Assets Inc., 4.715% 11/12/2037 487,750 517,703

1,000,000 Merrill Lynch Financial Assets Inc., 5.04% 03/12/2039 901,060 985,037




– 12 –



HEALTH CARE (0.7%) 850 Centric Health Corp. 1,020 1,300

1,900 Paladin Labs Inc. 44,239 69,122 USD 493,000 Patheon Inc., 8.625% 04/15/2017 529,170 439,247 USD 265,000 Select Medical Corp., 7.625% 02/01/2015 266,286 240,620

5,000 Valeant Pharmaceuticals International Inc. 187,270 194,400 1,027,985 944,689

CANADIAN GOVERNMENT BONDS (0.5%) 600,000 City of Toronto 5.05% 07/18/2017 598,368 684,453

WARRANTS (0.0%) 500 Catch the Wind Ltd., Warrants (21Apr12) – – 435 Franco-Nevada Corp., Warrants (08Jul13) – 154

1,086 Kinross Gold Corp., Warrants (17Sep14) – 2,650 800 Laramide Resources Ltd., Warrants (05Mar12) – –

3,000 Metalex Ventures Ltd., Warrants (06Oct11) – – 1,450 Wavefront Technology Solutions Inc.,

Warrants (26Apr12) – 11 – 2,815

Commission and other portfolio transaction costs (51,273)

Total Bonds & Equities (98.5%) 144,810,204 133,037,954

DERIVATIVE INSTRUMENTS

Foreign Currency Forward Contracts (-0.7%)(see Schedule A) (914,899)

Total Investments (97.8%) 144,810,204 132,123,055

Other Assets (net) (2.2%) 2,928,474

Net Assets (100.0%) 135,051,529

Principal amounts stated in:USD U.S. Dollar

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.


Schedule AForeign Currency Forward Contracts (-0.7%)

Credit Rating Settlement Contract UnrealizedContracts Counterparty of the Counterparty‡ Date Rate ($) Pay Receive Gain (Loss) ($)

1 Royal Bank of Canada A-1+ 19-Oct-11 1.01 (16,188,418) US $ 16,060,853 Canadian $ (914,899) Total Foreign Currency Forward Contracts Value (914,899)

‡Credit ratings 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.

Synergy Tactical Asset Allocation FundFinancial Statements (unaudited)

– 13 –Semi-Annual Financial Statements as at September 30, 2011

AssetsInvestments at fair value*CashShort-term investmentsMargin for short salesIncome taxes recoverableDaily variation margin on derivative investmentsUnrealized gain on futures and forward currency contractsCash collateral received for securities on loan (Note 6)Swaps, swaptions and options at fair valueReceivable for unit subscriptionsReceivable for securities soldManagement fee rebate receivableReceivable for dividends and accrued interest

LiabilitiesBank overdraftManagement fees payableAccrued expensesUnrealized loss on futures and forward currency contractsSwaps, 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 I

Net assets per unit (see Schedule of Net Assets per Unit and Net Asset Value per Unit)


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


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

ExpensesManagement fees (Note 5)Administrative fees (Note 5)Interest expenseGoods and services tax/Harmonized sales 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 costsCapital 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 I

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


133,038 165,7862,544 1,453

- -- -- -- -- 91- -- -

34 46142 558

- -973 808

136,731 168,742

- -- -- -

915 -- -

588 527176 311

- -- -- -

1,679 838135,052 167,904

144,810 157,228- -

51,657 64,0951,156 1,398

82,239 102,411

7.04 8.045.70 6.489.46 10.68

7,336,819 7,969,587202,744 215,892

8,689,433 9,585,641

525 6201,867 1,674

4 4- -- -- -

(9) -2,387 2,298

98 18114 239 -

11 14132 218

2,255 2,080

346 2,71243 (60)(53) (72)

- -

(21,336) (1,767)(21,000) 813(18,745) 2,893

(7,654) 607(160) 17

(10,931) 2,269

(0.98) 0.06(0.77) 0.07(1.20) 0.20

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

2011 2010

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

as at as atSeptember 30, 2011 March 31, 2011


Synergy Tactical Asset Allocation FundFinancial Statements (unaudited)

– 14 –

Class ANet assets, beginning of periodCapital transactions




Class FNet assets, beginning of periodCapital transactions




Class INet assets, beginning of periodCapital transactions




Total FundNet assets, beginning of periodCapital transactions




167,904 188,828

4,482 5,541- -

(18,589) (24,634)(14,107) (19,093)

- -- -- -- -

(18,745) 2,893135,052 172,628

64,095 72,087

4,204 5,387- -

(8,988) (12,917)(4,784) (7,530)

- -- -- -- -

(7,654) 60751,657 65,164

1,398 1,401

108 151- -

(190) (396)(82) (245)

- -- -- -- -

(160) 171,156 1,173

102,411 115,340

170 3- -

(9,411) (11,321)(9,241) (11,318)

- -- -- -- -

(10,931) 2,26982,239 106,291

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

2011 2010


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

2011 2010


Synergy Tactical Asset Allocation FundFinancial Statements – Supplementary Schedules (unaudited)

– 15 –

Class ABalance, beginning of periodUnits issued for cash Units issued for reinvested distributions Units redeemedBalance, end of period

Class FBalance, beginning of periodUnits issued for cash Units issued for reinvested distributions Units redeemedBalance, end of period

Class IBalance, beginning of periodUnits issued for cash Units issued for reinvested distributions Units redeemedBalance, end of period

Schedule of Securities Lending (Note 6)as at September 30 (in $000’s)

2011 2010

LoanedCollateral (non-cash)

3,597 9,4963,777 9,704

Schedule of Commissionsfor the periods ended September 30 (in $000’s)

2011 2010

Brokerage commissionsSoft Dollar commissions†

52 714 8

Schedule of Fund Unit Transactions for the periods ended September 30

2011 2010

7,969,587 9,839,450541,477 748,872

- -(1,174,245) (1,794,625)7,336,819 8,793,697

215,892 237,37916,938 26,123

- -(30,086) (68,026)202,744 195,476

9,585,641 11,846,98716,996 350

- -(913,204) (1,179,529)

8,689,433 10,667,808

†A portion of brokerage commissions paid was used to cover research and market data services, termed soft dollar commissions. This amount has been estimated by the Manager of the Fund.The accompanying notes are an integral part of these financial statements.


Class ANet assets per unitNet asset value per unit

Class FNet assets per unitNet asset value per unit

Class INet assets per unitNet asset value per unit

7.04 7.417.06 7.41

5.70 6.005.71 6.00

9.46 9.969.48 9.97

Schedule of Net Assets per Unit and Net Asset Value per Unit (Note 2)as at September 30 (in $)

2011 2010

Annual management fee rateClass AClass FClass I

Annual fixed administration fee rateClass AClass FClass I

1.950.95

Paid directly by investor

0.220.22

-

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

2011

Synergy Tactical Asset Allocation FundFund Specific Financial Instruments Risks (Note 11) (unaudited)

The Fund’s investments were concentrated in the following segments:

as at March 31, 2011

Categories Net Assets (%)

Funds ........................................................................................................................................ 30.7Financials ................................................................................................................................. 15.0Energy ...................................................................................................................................... 10.5Consumer Discretionary........................................................................................................... 10.4Materials.................................................................................................................................. 10.3Industrials ................................................................................................................................ 8.5Asset Backed Securities .......................................................................................................... 5.5Information Technology ........................................................................................................... 2.3Consumer Staples.................................................................................................................... 1.7Canadian Government Bonds .................................................................................................. 1.3Health Care .............................................................................................................................. 1.3Other Assets (net) .................................................................................................................... 1.1Utilities..................................................................................................................................... 0.7Telecommunication Services ................................................................................................... 0.6Foreign Currency Forward Contracts ....................................................................................... 0.1

During the six-month period the Fund’s exposure to other price risk, credit risk, currency risk and fair value hierarchy changed significantly as disclosed in the section below. For details relating tointerest rate risk, refer to the audited annual financial statements as at March 31, 2011, as theFund’s exposure to interest rate risk remains unchanged.

Other Price RiskAs at September 30, 2011 and March 31, 2011, the Fund was invested in Canadian equities andtherefore was sensitive to changes in general economic conditions in Canada, however some of theFund's assets were invested in fixed income securities and their market risk exposure is describedbelow.

As at September 30, 2011, had the Canadian markets increased or decreased by 10% (March 31,2011 - 10%), with all other variables held constant, net assets of the Fund would have increased ordecreased, respectively, by approximately $8,409,000 (March 31, 2011 - $11,164,000). In practice,actual results may differ from this analysis and the difference may be material.

Credit RiskThe Fund was invested in fixed income securities, preferred securities and derivative instruments, asapplicable, with the following credit ratings:

as at September 30, 2011*Credit Rating^ Net Assets (%)AAA/Aaa/A++ 1.2 AA/Aa/A+ 1.2 A 7.2 BBB/Baa/B++ 7.3 BB/Ba/B+ 2.7 B 11.3 CCC/Caa/C++ 0.2 Not Rated 5.1 Total 36.2

– 16 –


Credit Risk (cont’d)

as at March 31, 2011*Credit Rating^ Net Assets (%)AAA/Aaa/A++ 2.3 AA/Aa/A+ 1.6 A 6.9 BBB/Baa/B++ 6.7 BB/Ba/B+ 3.4 B 9.9 CCC/Caa/C++ 0.3 Not Rated 1.2 Total 32.3

x*Credit ratings are obtained from Standard & Poor’s, where available, otherwise ratings areobtained from: Moody's Investors Service, Dominion Bond Rating Services or Canadian BondRating Services, respectively.

^Refer to Note 11 for Credit Rating cross reference.

Currency RiskThe tables below summarize the Fund's exposure to currency risk.

as at September 30, 2011Financial Instruments Derivatives Total Currency Net

Exposure Exposure Exposure AssetsCurrency (in $000’s) (in $000’s) (in $000’s) (%)US Dollar 17,790 (16,969) 821 0.6 Total 17,790 (16,969) 821 0.6

as at March 31, 2011Financial Instruments Derivatives Total Currency Net

Exposure Exposure Exposure AssetsCurrency (in $000’s) (in $000’s) (in $000’s) (%)Australian Dollar 911 - 911 0.5 US Dollar 17,024 (16,669) 355 0.2 Total 17,935 (16,669) 1,266 0.7

As at September 30, 2011, had the Canadian dollar strengthened or weakened by 10% (March 31,2011- 10%) in relation to all other foreign currencies held in the Fund, with all other variablesheld constant, net assets of the Fund would have decreased or increased, respectively, byapproximately $82,000 (March 31, 2011 - $127,000). In practice, actual results may differ from thisanalysis and the difference may be material.


– 17 –

Synergy Tactical Asset Allocation FundFund Specific Financial Instruments Risks (Note 11) (unaudited) (cont’d)

Fair Value HierarchyThe tables below summarize the inputs used by the Fund in valuing the Fund’s investments andderivatives carried at fair value.

Long Positions at fair value as at September 30, 2011Level 1 Level 2 Level 3 Total

(in $000's) (in $000's) (in $000's) (in $000's)Equities 40,140 44 – 40,184 Bonds – 41,026 305 41,331 Asset-backed securities – 7,621 – 7,621 Funds 43,899 – – 43,899 Warrants 3 – – 3 Foreign currency forward contracts, net – (915) – (915)Total 84,042 47,776 305 132,123


Fair Value Hierarchy (cont’d)

Long Positions at fair value as at March 31, 2011Level 1 Level 2 Level 3 Total

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

Equities 60,101 11 – 60,112 Bonds – 44,833 – 44,833 Asset-backed securities – 7,336 1,976 9,312 Funds 51,525 – – 51,525 Warrants 4 – – 4 Foreign currency forward contracts, net – 91 – 91 Total 111,630 52,271 1,976 165,877

There were no transfers between Level 1 and 2 and Level 1 and 3 during 2011 and 2010.


The tables below summarize the movement in financial instruments classified as Level 3.

for the period ended September 30, 2011Change in

Balance at Net transfers Realized gain unrealized gain Balance atMarch 31, 2011 Purchases Sales in (out) (loss) (loss)* September 30, 2011

(in $000's) (in $000's) (in $000's) (in $000's) (in $000's) (in $000's) (in $000's) Long Positions/Assets:Bonds – – – 305 – – 305 Asset-backed securities 1,976 – (989) (1,001) (12) 26 – Total 1,976 – (989) (696) (12) 26 305

*Change in unrealized gain (loss) related to investments held at September 30, 2011 was ($852).

During the period, fixed income investments with a net fair value of $305,000 were transferred into Level 3 out of Level 2 as observable market inputs were no longer available for these investments and fixed incomeinvestments with a net fair value of $1,001,000 were transferred out of Level 3 into Level 2 as observable market inputs became available for these investments.

for the year ended March 31, 2011Change in

Balance at Net transfers Realized gain unrealized gain Balance atMarch 31, 2010 Purchases Sales in (out) (loss) (loss)* March 31, 2011

(in $000's) (in $000's) (in $000's) (in $000's) (in $000's) (in $000's) (in $000's) Long Positions/Assets:Equities 152 – (177) – 20 5 – Asset-backed securities – 2,003 – – – (27) 1,976 Total 152 2,003 (177) – 20 (22) 1,976

*Change in unrealized gain (loss) related to investments held at March 31, 2011 was ($26,100).

Investments classified as Level 3 are valued at fair value based on unobservable inputs and assumptions, which may include credit spreads, industry multipliers and discount rates. Management has assessed thatthe effect of changing these inputs to reasonably possible alternatives would not have a significant impact on the net assets of the Fund as at September 30, 2011 and March 31, 2011.

– 18 –

CI Mutual FundsNotes to the Financial Statements as at September 30, 2011 (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 first sold to the public under prospectus.

Inception Date:

Class A Class C Class F Class I Insight Class Z

CI Funds

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

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

(formerly CI American Equity Fund)

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

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

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

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

CI Emerging Markets Fund Sep. 10, 91 – Jul. 17, 00 Jul. 31, 01 – –

CI European Fund Sep. 10, 91 – Jul. 31, 01 Jul. 23, 04 – –

CI Global Bond Fund Aug. 31, 92 – Jul. 17, 00 Jul. 31, 01 Jul. 15, 03 –

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

CI Global High Dividend Advantage Fund Jan. 23, 06 – Feb. 23, 06 Feb. 23, 06 – –

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 Balanced Fund Sep. 29, 94 – Jul. 17, 00 Jul. 31, 01 – –

CI International Fund Aug. 5, 99 – Jul. 17, 00 Jul. 13, 03 Jul. 15, 03 –

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

CI Money Market Fund Oct. 1, 90 – Jul. 31, 01 Jul. 31, 01 Jul. 15, 03 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 F Class I Class Z

Harbour Funds

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

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

Class A Class F Class I Insight Class U Class X Class Y Class Z

Signature Funds

Signature Canadian Balanced Fund Jun. 25, 97 Jul. 17, 00 Jul. 15, 03 – Jul. 18, 09 – Jul. 18, 09 Jun. 20, 05

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

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

Signature Corporate Bond Fund Dec. 16, 01 Jul. 15, 03 Jul. 15, 03 Jul. 15, 03 – – – –

Signature Diversified Yield Fund Nov. 10, 09 Nov. 10, 09 Nov. 10, 09 – – – – –

Signature Dividend Fund Oct. 29, 96 Jul. 31, 01 Jul. 15, 03 – – Jul. 15, 03* Jul. 15, 03 Jul. 15, 03

Signature Global Income & Growth Fund Feb. 22, 07 Feb. 22, 07 Feb. 22, 07 – – – – –

Signature High Income Fund Dec. 18, 96 Jul. 31, 01 Aug. 28, 02 – – – – –

Signature Income & Growth Fund Nov. 13, 00 Nov. 13, 00 Jun. 20, 05 – – – – –

Signature Mortgage Fund May 1, 93 Dec. 13, 99 – – – – – –

Signature Select Canadian Fund May 13, 98 Jul. 17, 00 Jul. 31, 01 Jul. 15, 03 – – – 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.

– 19 –



Inception Date:

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 AT8 Class F Class FT5 Class FT8 Class I 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. 17, 07 Dec. 17, 01 Sep. 17, 07 Sep. 17, 07 Jun. 20, 05 – –

Portfolio Series Conservative Balanced Fund Dec. 17, 01 – – Dec. 17, 01 – – Jun. 20, 05 – –

Portfolio Series Conservative Fund Dec. 1, 97 – – Aug. 30, 00 – – Dec. 1, 97 Jul. 14, 10 Jul. 14, 10

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

Effective as of close of business on September 17, 2010, the following Funds were merged:

Terminating Funds Continuing Funds

Artisan Canadian T-Bill Portfolio CI Money Market

Artisan Moderate Portfolio Portfolio Series Balanced Fund

Artisan Growth Portfolio Portfolio Series Balanced Growth Fund

Artisan Conservative Portfolio Portfolio Series Conservative Balanced Fund

Artisan Most Conservative Portfolio Portfolio Series Conservative Fund

Artisan High Growth Portfolio Portfolio Series Growth Fund

Artisan Maximum Growth Portfolio Portfolio Series Maximum Growth Fund

Artisan New Economy Portfolio Portfolio Series Maximum Growth Fund

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 17, 2010, 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.

Net Asset Units

Terminating Funds Continuing Funds Acquired ($) Issued

Artisan Canadian T-Bill Portfolio CI Money Market 4,806,765 480,677

Artisan Moderate Portfolio Portfolio Series Balanced Fund 102,856,243 4,762,080

Artisan Growth Portfolio Portfolio Series Balanced Growth Fund 78,637,729 6,755,819

Artisan Conservative Portfolio Portfolio Series Conservative Balanced Fund 25,645,788 2,138,931

Artisan Most Conservative Portfolio Portfolio Series Conservative Fund 11,405,702 1,140,570

Artisan High Growth Portfolio Portfolio Series Growth Fund 40,325,340 3,642,759

Artisan Maximum Growth Portfolio Portfolio Series Maximum Growth Fund 15,735,012 1,512,251

Artisan New Economy Portfolio Portfolio Series Maximum Growth Fund 1,996,078 191,109

As a result of the merger, the Terminating Funds (other than Artisan Canadian T-Bill Portfolio) were deemed to

have a taxation year-end on the merger date. In accordance with the Income Tax Act, all unrealized losses and

certain elected unrealized gains of the Funds' portfolio were deemed to be realized on the merger date. The

Artisan Canadian T-Bill Portfolio transfered all of its net asset to CI Money Market Fund.

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

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

National Bank of Canada. Through the Forward Agreement, the Fund provides unitholders with exposure to the

performance of one managed account ("Underlying Account") of equity basket managed by Epoch Investment

Partners Inc., in exchange for the Canadian equity portfolio. 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 Bank of Montreal. Under the Forward Purchase Agreement, the Fund agrees to buy securities

from Bank of Montreal in return for a purchase price of the Signature Diversified Yield Trust (“Underlying

Trust”). 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 Statement of Investment Portfolio and Schedule of Fees for each of the Funds are as at September 30,

2011. The Statements of Net Assets are as at September 30, 2011 and March 31, 2011. The Schedule of Net

Assets per Unit and Net Asset Value per Unit and Schedule of Securities Lending are as at September 30, 2011

and 2010, 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, 2011 and 2010,

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

from inception to September 30, 2011 and 2010. The Fund Specific Financial Instruments Risks for each of the

Funds are as at September 30, 2011 and March 31, 2011, where applicable.

– 20 –



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 consistent with those used in preparing the annual financial

statements. The semi-annual financial statements should be read in conjunction with the Funds’

March 31, 2011 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 forward currency 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.

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

entered into Forward Agreements with third parties and the value of these forward contracts on the valuation

date is equal to the gain or loss that would be realized if the contracts were closed out or expired. Investments

sold forward as part of the Forward Agreement are valued at the market close price, and the Underlying

Account/Trusts are valued at their net asset value as reported by the Underlying Account’s/Trusts’ manager on

the valuation date for purposes of determining the value of the forward contracts. All gains (losses) arising from

the forward agreements are recorded as part of “Unrealized gain (loss) on forward agreement”/ “Unrealized

gain (loss) on purchase forward agreement” in the Statements of Net Assets until the contract is closed out or

expires; at which time the gains (losses) are realized and reported as “Realized gain (loss) on investments” in

the Statements of Operations.

(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 forward currency 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 reflected in the Statements of Operations in “Realized gain (loss) on investments”.

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.

(e) Equity Swaps

The fair value of equity swaps are determined using indicative bid values obtained from third-party

broker-dealers. The broker-dealers determine the fair value using valuation models that are based on

assumptions that are supported by observable market inputs, including the interest rates for that day.

The indicative bid values are independently assessed by the Manager to ensure that they are reasonable.

Any income received for equity swaps contracts is recorded as “Derivative income (loss)” in the

Statements of Operations. When the equity swaps contracts are closed out, any gains (losses) are

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

(f) 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 reflected in the

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

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 policies 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.

– 21 –



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)

at the end of each business day. Investors in Class I units are charged management fees directly as negotiated

between the investor and the Manager.

During the period ended September 30, 2011, the Manager of the Funds absorbed a total of $1,195,000

(2010 - $1,359,000) and US$170,000 (2010 – US$162,000) 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 “Management fee rebate receivable” and in “Management fee 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) 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 and Signature Diversified Yield 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/Trust under the Forward Agreements calculated and paid monthly.

As of July 1, 2010, Ontario combined the federal goods and services tax (“GST” - 5%) with the provincial retail

sales tax (“PST” - 8%). The combination resulted in a Harmonized sales tax (“HST”) rate of 13%.

6. SECURITIES LENDING

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

with their custodian, RBC Dexia Investor Services Trust ("RBC Dexia"). 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 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

(other than Signature Select Global Fund). Starting June 1, 2010, the Signature Select Global Fund paid

notional distributions. Notional distributions were automatically reinvested without charge in additional units

of the Signature Select Global Fund and the then outstanding units of the Signature Select Global Fund were

consolidated on such basis as was necessary to increase the net asset value per unit to that which prevailed

prior to the distribution and to ensure that the number of units outstanding immediately following such

reinvestment and consolidation are the same as the number of units outstanding immediately prior to the

reinvestment and consolidation. Accordingly, no payments are made or new units issued on a distribution. 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:

2011 2010

Fund (in $) (in $)

CI Alpine Growth Equity Fund 2,287 2,713

CI Canadian Investment Fund 62,143 60,238

CI Canadian Small/Mid Cap Fund 54,570 43,293

CI Emerging Markets Fund 165 –

CI Income Advantage Fund – 6,996

Select Canadian Equity Managed Fund 4,182 10,633

Harbour Fund 49,535 –

Harbour Growth & Income Fund 72,032 –

Signature Canadian Balanced Fund 25,567 28,796

Signature Canadian Resource Fund 37,236 15,388

Signature Dividend Fund 18,866 21,252

Signature Global Income & Growth Fund 160 186

Signature High Income Fund 32,540 26,078

Signature Income & Growth Fund 51,230 42,021

Signature Select Canadian Fund 57,327 67,513

Synergy American Fund – 125

Synergy Tactical Asset Allocation Fund 2,588 4,201

– 22 –



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 January 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, 2013 instead of

January 1, 2011.

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

Significant cash balances as disclosed in the Statements of Net Assets are maintained by the custodian,

RBC Dexia. 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, as applicable.

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.

– 23 –



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 instruments 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 risks exposure including fair

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

March 31, 2011, as these Funds’ exposure to financial instruments risks and fair value hierarchy classification

remained unchanged through the period.

– 24 –

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.


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