A client s guide to world-class money management

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1 A client s guide to world-class money management

2 A sophisticated, comprehensive investment program as unique as you are.

3 CI Private Investment Management Managing your wealth effectively means more than simply pulling a product off the shelf you need a tailormade solution that can address your unique circumstances. CI Private Investment Management provides the essential elements to create the ideal investment portfolio that reflects your individual financial goals and priorities, today and in the future. The key elements of CI Private Investment Management include: World-class portfolio management and a broad choice of investments. Tax efficiency. Guaranteed solutions. Simplified, comprehensive reporting. Preferred pricing. 1

4 World-class portfolio management and a broad choice of investments CI Private Investment Management (PIM) features an impressive lineup of award-winning portfolio managers, selected for their proven success, the value they add and the diversity they bring to the PIM program. With access to some of the best money management available to Canadian investors, PIM makes it possible to construct a complete portfolio that accurately reflects your financial objectives and tolerance for risk. PIM s broad range of portfolio options allows you to pursue investment opportunities that are diversified not only across asset classes such as equities, bonds and real estate, but also by country, market capitalization, industry sector and investment style. Our experienced managers also offer sophisticated and specialized investment approaches. All PIM investments are continually monitored and evaluated to ensure their strategic focus and consistent performance by CI Investment Consulting, CI s in-house investment management group. 2

5 An award-winning record CI Investments money management and operational excellence have earned widespread industry recognition over the years, highlighting the consistent quality of its portfolio managers and selection of investment mandates, all of which are available to PIM investors. Award-winning portfolio managers and funds 50 Morningstar Awards, including: Best Fund of Funds in 2013 Portfolio Select Series. Best Fund of Funds in 2012 and 2011 Portfolio Series. Fund Manager of the Decade in 2010 Eric Bushell. 54 Lipper Fund Awards which honour mandates that have excelled in delivering consistently strong risk-adjusted performance, relative to peers. 3

6 Tax-effective investments As your wealth grows, so too does your need for tax-wise investing. PIM takes tax planning beyond conventional strategies such as SPs, offering products and solutions that can help minimize your tax burden and maximize your portfolio s potential for growth or income. Using Canada s oldest and largest corporate class structure, PIM allows you to: Achieve tax-deferred compound growth outside your registered accounts. Switch or rebalance among more than 55 mandates as your needs change, without tax consequences. eceive tax-efficient capital gains or Canadian dividends from all funds, regardless of the mandate. Defer paying tax on distributions, given the low dividend payout of the funds. Income Canadian Switch between investments Specialty Global PIM s account linking and comprehensive record-keeping features also make it simple to strategically allocate your family s investments across registered and non-registered accounts to realize the greatest tax efficiency. 4

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8 Tax-effective cash flow When you are ready to draw income from your portfolio, PIM allows you to create a fully customizable, tax-efficient monthly cash flow stream, even as your savings continue to grow. Managing your level of taxable income can become especially important in retirement, when clawbacks can reduce certain income-tested benefits such as Old Age Security. Using PIM s optional T-Class platform, you can draw monthly cash flow from your investments in the form of 100% tax-free return of capital. (These distributions reduce the adjusted cost base, or ACB of your investments. Over time, the ACB may fall to zero, at which point your payments will be distributed as capital gains, which are also taxed at a favourable rate.) The difference in the after-tax value of $100,000 in income from interest, dividends, capital gains and return of capital $100,000 Net after taxes Taxes Paid $100,000 $80,000 $73,000 $78,000 $60,000 $40,000 $20,000 $55,000 $45,000 $27,000 $22,000 $0 Interest Income Dividend Income Capital Gains eturn of Capital Assumes a tax rate of 45% on interest income, 27% on Canadian dividend income and 22% on capital gains. Tax rates based on an average of the highest combined federal and provincial personal income tax rates. Please note that T-Class may pay taxable annual dividends in addition to the return of capital payments. 6

9 Guaranteed solutions to mitigate retirement investment risks As you move closer to retirement, wealth preservation, as well as income and cash flow generation, will likely assume more importance in your overall financial plan. Guaranteed cash flow If you require a stable, guaranteed retirement cash flow, PIM s G5 20 Series of mutual fund trust mandates can address your needs. G5 20 Series offers these benefits: 20 years of guaranteed cash flow, backed by Bank of Montreal. Cash flow can increase but never decrease, through an automatic locking in of a portion of fund gains. Strategies to capture market gains and protect against market downturns. Principal and estate protection PIM offers you the option of saving and accumulating wealth through a choice of more than 45 SunWise Essential Series 2 mandates. Each mandate combines world-class investment management with the protective features of an insurance contract backed by Sun Life Financial. SunWise Essential Series 2 puts safety first with: Protection of your savings as your wealth grows. Preservation of the value of your estate for loved ones. Potential creditor protection, if proper beneficiary designation is in place. 7

10 Simplified, comprehensive reporting You lead a busy, complex life, and over the years your financial matters may have become more intricate, too. By linking all your household s assets together, PIM can help to bring your family s full financial picture into focus. The benefits of linking family accounts include: Effective asset allocation across all accounts. Detailed, quarterly consolidated statements. Simplified record keeping. Fee reductions as PIM balances rise; a family s assets are viewed as a whole with preferred pricing applied across all investment mandates. 8

11 Competitive fee structure CI Private Investment Management is available to individual investors at competitive pricing similar to that of large institutional investors. A tiered fee schedule that ensures preferred pricing is applied progressively to larger asset bases. PIM fees are automatically reduced or rebated when household balances reach $250,000 or more. PIM s competitive fees and benefits are available with a minimum $100,000 investment. You can save even more by linking household accounts within the program to take advantage of lower fees as your PIM account balance rises. 9

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13 Canada s Investment Company. CI Investments has been managing money for over four decades and today is one of Canada s largest investment companies, managing over $100 billion. CI is a subsidiary of CI Financial Corp., a diversified wealth management firm listed on the Toronto Stock Exchange under the symbol CIX. CI is proud to partner with financial advisors across Canada, who offer our products 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, speak to your financial advisor, or visit: 11

14 Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Except as described below, mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. In the case of the G5 20 Series funds, Bank of Montreal guarantees that at least the original amount you paid for the fund unit will be paid back to you over a 20-year period in equal monthly instalments. This guarantee does not apply to units redeemed before the end of that period. You will receive the net asset value per unit for any unit redeemed early. Mutual fund securities are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer. BMO Financial Group and Bank of Montreal are marketing names (also referred to as trade names or brand names) used by Bank of Montreal. BMO, BMO Financial Group, BMO (M-bar roundel symbol) Financial Group, Bank of Montreal and BMO Capital Markets are trademarks owned by Bank of Montreal. CI Investments, the CI Investments design, Cambridge, Harbour Advisors, Harbour Funds, Canada s Investment Company, and CI Guaranteed etirement Cash Flow Series are registered trademarks of CI Investments Inc. Signature Funds, Signature Global Asset Management, Portfolio Select Series, Portfolio Series, G5 20 Series and the G5 20 Series design are trademarks of CI Investments Inc. Cambridge Global Asset Management is a business name of CI Investments Inc. used in connection with its subsidiary, CI Global Investments Inc. Certain portfolio managers of Cambridge Global Asset Management are registered with CI Investments Inc. Sun Life Assurance Company of Canada, a member of the Sun Life Financial group of companies, is the sole issuer of the individual variable annuity contract providing for investment in SunWise Essential Series 2 segregated funds. A description of the key features of the applicable individual variable annuity contract is contained in the Information Folder. ANY AMOUNT THAT IS ALLOCATED TO A SEGEGATED FUND IS INVESTED AT THE ISK OF THE CONTACT HOLDE AND MAY INCEASE O DECEASE IN VALUE. Please refer to SunWise Essential Series 2 Contract and Information Folder and any applicable Supplements for full details. SunWise is a registered trademark of Sun Life Assurance Company of Canada. Nothing herein should be read to constitute an offer or solicitation by Trident Investment Management, LLC or its principal to provide investment advisory services to any person or entity. Morningstar Awards Morningstar Inc. All ights eserved. Lipper Fund Awards are given by Lipper, Inc. to recognize funds that have provided superior consistency and risk-adjusted returns when compared to a group of similar funds. Awards are given to the fund with the highest value within its category for the time periods of one, three five and 10 years according to the Lipper Leader ratings for Consistent eturn, which reflect funds historic returns, adjusted for volatility, relative to peers. The Lipper Fund Awards are part of the Thomson euters Awards for Excellence. For more information, visit excellence.thomsonreuters.com.

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