Signature FundsTM Annual Financial St atements as at March 31, 2007

Transcription

1 Signature Funds TM Annual Financial Statements March 31, 2007

2 A look inside Overview...1 Equity Funds Signature Canadian Resource Fund...2 Signature Select Canadian Fund...7 Balanced Funds Signature Canadian Balanced Fund...12 Signature Global Income & Growth Fund...18 Signature Income & Growth Fund...22 Income Funds Signature Corporate Bond Fund...31 Signature Dividend Fund...37 Signature High Income Fund...44 Notes to the Financial Statements...51 About the CI Funds Board of Governors and Letter from the CI Funds Board of Governors...56 Management and Audit Reports Legal Notice...58

3 2 Queen Street East, Twentieth Floor Toronto, Ontario M5C 3G7 Telephone: Toll Free: Facsimile: CI Investments is pleased to present the Financial Statements for your ABOUT CI INVESTMENTS mutual fund holdings for the year ending March 31, Inside is important information about each fund, including its financial statements for the period and a complete list of portfolio holdings. Experience. Strength. Diversity. CI Investments has been investing on behalf of Canadians since 1965 and has grown to become one of Canada s largest fund companies, If you would prefer to receive future annual and semiannual financial statements and other important documents electronically, you may sign up at InvestorOnline at This service gives you easy online access to uptodate information about your account, and allows you to view and print documents such as this report and your account statements, trade confirmations and tax receipts. managing about $55 billion in assets. Two million Canadians have placed their trust in CI to help them achieve their financial goals. CI is a corporation controlled by CI Financial Income Fund, a diversified wealth management firm listed on the Toronto Stock Exchange. CI Financial had $84.3 billion in feeearning assets at March 31, If you have any questions about this report or CI s funds, please contact your advisor or CI Client Services at CI Investments is known for providing the industry s widest selection of investment products and leading portfolio managers. Our portfolio management expertise is available through several different platforms Thank you for investing with CI. including mutual and segregated funds, managed solutions and alternative investments. Our products are supported by a complete suite of investment services. CI is proud to partner with financial advisors across Canada who offer our funds to their clients. We believe investors are most successful when they follow a sound financial plan developed with the assistance of a qualified advisor. For more information on CI, please visit us online at 1

4 Signature Canadian Resource Fund Statement of Investment Portfolio March 31, 2007 MATERIALS (46.6%) 25,900 Aber Diamond Corp.* 1,052,738 1,114, ,000 AgnicoEagle Mines Ltd.* 5,704,292 9,023,430 64,100 Agrium Inc. 1,811,906 2,842,835 63,900 Air Products and Chemicals Inc. 4,667,487 5,456, ,170 Alcan Inc. 11,262,896 13,009, ,900 Anatolia Minerals Development Ltd. 819, , ,253 Anglo American PLC 5,604,135 6,218, ,400 AUR Resources Inc. 3,080,818 5,671, ,734 Barrick Gold Corp. 10,761,153 11,487, ,293 BHP Billiton PLC 5,827,779 9,917, ,100 Blue Pearl Mining Ltd.* 1,333,339 1,913, ,117 Cameco Corp. 10,795,002 12,208, ,577 Cia Vale do Rio Doce, ADR 6,874,108 9,975, ,600 Denison Mines Corp. 2,112,030 2,162,342 62,200 Domtar Canada Paper Inc., Exchangeable Shares 644, , ,000 Domtar Corp.* 2,392,552 2,427, ,700 Dynatec Corp. 1,962,000 3,011, ,500 Eldorado Gold Corp.* 3,493,412 5,308,875 81,787 Energy Resources of Australia Ltd.* 933,401 2,123,822 49,900 First Quantum Minerals Ltd.* 3,104,789 3,837,310 97,700 Fording Canadian Coal Trust* 2,555,203 2,534,338 50,400 FreeportMcMoRan Copper & Gold Inc., Class B (USD) 3,609,908 3,851, ,333 Goldcorp Inc. 12,167,003 11,287, ,269 HMZ Metals Inc. 30,554 7, ,400 HudBay Minerals Inc. 2,864,158 3,710, ,700 Iamgold Corp. 1,660,797 1,405, ,900 ICLIsrael Chemicals Ltd. 2,500,538 3,456, ,800 Inmet Mining Corp. 4,218,052 7,607, ,205 Johnson Matthey PLC 4,726,316 4,661, ,436 Kinross Gold Corp.* 6,470,671 6,940, ,500 LionOre Mining International Ltd.* 2,216,373 2,604,310 49,429 Lonmin PLC 3,418,703 3,728, ,593 Lundin Mining Corp. 1,611,233 6,381,220 64,600 Meridian Gold Inc.* 1,868,786 1,904,408 37,700 Monsanto Co. 2,256,682 2,392,214 42,000 NOVA Chemicals Corp. 1,426,698 1,498, ,900 Paladin Resources Ltd.* 3,586,204 6,428,688 69,800 Peabody Energy Corp. 1,971,450 3,242,838 72,279 Rio Tinto PLC 4,611,745 4,765,179 9,320 Riphean Platinum Corp. 270,400 Sherritt International Corp., Restricted Voting Shares 1,930,187 4,499,456 80,800 streettracks Gold Trust 5,051,221 6,132,718 87,760 Teck Cominco Ltd., Class B 4,775,825 7,063,802 27,400 Umicore 4,689,005 5,624, ,700 Yamana Gold Inc.* 1,698,322 4,734, ,198 Zinifex Ltd. 609,444 2,346, ,762, ,167,589 ENERGY (44.7%) 51,300 Addax Petroleum Corp. 1,397,925 1,872,450 30,400 Anadarko Petroleum Corp. 1,513,648 1,508,523 36,100 Apache Corp. 2,772,540 2,946, ,400 Canadian Natural Resources Ltd. 15,206,935 15,771,750 66,900 Canadian Oil Sands Trust 1,792,387 1,890,594 66,500 Chesapeake Energy Corp. 2,249,788 2,370, ,000 Chevron Corp. 10,303,931 11,442,307 31,800 ConocoPhillips 2,313,338 2,509, ,397 Cordero Energy Inc. 1,685,798 1,911,823 94,300 Cyries Energy Inc. 1,174,035 1,161,776 49,500 Duvernay Oil Corp. 1,877,355 1,915, ,619 Enbridge Inc.* 3,989,643 4,278, ,114 EnCana Corp. 20,454,073 23,308,258 24,700 EOG Resources Inc. 1,868,345 2,034, ,600 ExAlta Energy Inc. 750, ,488 88,000 Exxon Mobil Corp. 6,459,837 7,665,735 31,600 FMC Technologies Inc. 2,341,937 2,545, ,238 Husky Energy Inc. 7,780,040 8,811, ,535 Imperial Oil Ltd. 7,510,361 8,326, ,348 Nexen Inc. 10,537,595 12,188,451 41,900 Noble Corp. 3,490,589 3,806, ,147 PetroCanada 15,722,403 15,041,587 94,100 Schlumberger Ltd. 6,684,702 7,507, ,795 Suncor Energy Inc. 21,573,199 21,944, ,300 Synenco Energy Inc., * 1,804,217 1,226, ,494 Talisman Energy Inc. 14,568,538 14,414,868 93,600 Total SA, ADR 6,925,742 7,540,822 98,800 Transocean Inc. 7,896,417 9,319, ,100 Trican Well Service Ltd. 1,410,562 2,378,685 12,700 Trinidad Energy Services Income Trust 195, , ,700 UTS Energy Corp.* 1,950,990 2,702,178 35,200 Valero Energy Corp. 2,365,590 2,620,879 64,400 Western Oil Sands Inc., 2,107,153 2,196,040 55,700 XTO Energy Inc. 3,148,124 3,524, ,824, ,215,285 INDUSTRIALS (1.6%) 214,600 Celtic Exploration Ltd. 1,836,237 2,768, ,038 Dyno Nobel Ltd.* 1,951,752 2,157,440 1,024,000 Eastern Platinum Ltd.* 1,699,496 2,109, ,700 Stornoway Diamond Corp. 1,045, ,521 6,533,357 7,624,741 CONSUMER STAPLES (0.8%) 40,600 Bunge Ltd.* 2,883,338 3,854,033 UTILITIES (0.7%) 500,900 Canadian Hydro Developers Inc. 2,848,553 3,155,670 *Denotes all or part of securities lent. All common shares unless otherwise noted. Percentages shown in brackets relate investments at market value to total net assets of the Fund. 2 CIG 611

5 Signature Canadian Resource Fund Statement of Investment Portfolio March 31, 2007 WARRANTS (0.1%) 4,111 Goldcorp Inc., Warrants 53, ,269 HMZ Metals Inc., Warrants (06Apr07) ,300 Iamgold Corp., Warrants (12Aug08) 88, ,618 88, ,191 Total Equities (94.5%) 372,940, ,353,509 Short Term Notes (6.0%) 28,299,641 28,299,641 DERIVATIVE INSTRUMENTS Foreign Currency Forward Contracts (0.1%) (see Schedule A) 626,709 Total Investments (100.6%) 401,240, ,279,859 Other Assets (net) (0.6%) (3,184,685) Total Net Assets (100.0%) 468,095,174 Schedule A Foreign Currency Forward Contracts (0.1%) Credit Market Contracts Pay Receive Price Due Date Rating Value $ 1 (13,000,000) Australian $ 11,960,000 Canadian $ May07 A1+ (136,798) 2 (7,292,978) Canadian $ 7,900,000 Australian $ May07 A1+ 58,153 2 (1,016,000) European Euro 1,566,197 Canadian $ May07 A1 (1,653) 2 (13,650,000) US $ 15,957,890 Canadian $ May07 A1+ 228,112 1 (17,800,000) US $ 20,856,260 Canadian $ Apr07 A1+ 317,611 1 (5,800,000) US $ 6,777,996 Canadian $ Jun07 A1+ 97,691 1 (6,080,000) US $ 7,079,674 Canadian $ Apr07 A1 63,593 Total Foreign Currency Forward Contracts Value 626,709 *Denotes all or part of securities lent. All common shares unless otherwise noted. Percentages shown in brackets relate investments at market value to total net assets of the Fund. 3

6 Signature Canadian Resource Fund Financial Statements Statements of Net Assets (in $000 s except for per unit amounts and units outstanding) Assets Investments at market value* Cash Short term investments Margin for short sales Income taxes recoverable Daily variation margin on derivative investments Unrealized gain on derivative investments Cash collateral received for securities on loan (Note 5) Receivable for unit subscriptions Receivable for securities sold Receivable for dividends and accrued interest Liabilities Bank overdraft Management fees payable Accrued expenses Unrealized loss on derivative investments Premium received from options contract Payable for securities purchased Payable for unit redemptions Payable for cash collateral under securities lending (Note 5) Investments sold short at market value* Distributions payable Net assets and unitholders' equity March 31, 2007 March 31, , , ,766 28,300 24, ,474 4, , , ,106 15, ,968 16, , ,726 Statements of Operations (in $000 s except for per unit amounts) Income Dividends Interest Securities lending (Note 5) Derivative income (loss) Income distribution from investments Less: Foreign withholding taxes Expenses Management fees (Note 4) Administrative fees (Note 4) Interest expense Legal fees Audit fees Goods and services tax Net income (loss) for the period 4,566 2,538 2,134 1, (464) (180) 6,318 4,396 9,004 8, ,549 9,473 (4,231) (5,077) Realized and unrealized gain (loss) on investments (see Schedule of Commissions) Realized gain (loss) on investments Foreign exchange gain (loss) Capital gain distribution from investments 123,740 (371) 100,630 Change in unrealized appreciation (depreciation) of investments (48,018) 75,047 Net gain (loss) on investments 75,351 71, , ,600 *Investments at cost Investments sold short at cost Net assets per class Net asset value per unit 372, , , ,814 2,056 2, per class per unit (Note 2) 70, , Number of units outstanding (see Schedule of Fund Unit Transactions) 22,923,008 20,580,842 83, ,034 4

7 Signature Canadian Resource Fund Financial Statements Statements of Changes in Net Assets Statements of Changes in Net Assets (cont d) 439, , , ,706 90,050 48,216 (158,631) (139,474) 45,987 73,448 (90,522) (48,465) (90,522) (48,465) 70, , , ,814 Total Fund 442, , , ,682 90,524 48,499 (161,876) (140,434) 45,364 74,747 (91,115) (48,755) (91,115) (48,755) 71, , , ,726 2, ,148 1, (3,245) (960) (623) 1,299 (593) (290) (593) (290) ,056 2,912 5

8 Signature Canadian Resource Fund Financial Statements Supplementary Schedules Schedule of Fund Unit Transactions Schedule of Commissions Balance, beginning of period Units issued for cash Units issued for reinvested distributions (Note 6) Units redeemed Units issued on fund merger (Note 1) Balance, end of period 20,580,842 16,733,551 5,390,835 9,019,997 4,541,072 2,604,895 (7,589,741) (7,777,601) 22,923,008 20,580,842 Brokerage commissions 1,353 1,189 Soft Dollar commissions Balance, beginning of period Units issued for cash Units issued for reinvested distributions (Note 6) Units redeemed Units issued on fund merger (Note 1) Balance, end of period 112,034 53,849 79,977 88,268 19,773 12,635 (128,410) (42,718) 83, ,034 Schedule of Loss Carry Forwards Net capital loss carried forward March 31, 2007 Schedule of Securities Lending (Note 5) Loaned Collateral (noncash) March 31, 2007 March 31, ,970 54,758 32,977 59,113 Noncapital losses expiring: Total Schedule of Fees (%) Annual management fee rate March 31, Annual fixed administration fee 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. 6

9 Signature Select Canadian Fund Statement of Investment Portfolio March 31, 2007 FINANCIALS (21.6%) 596,900 Bank of Montreal 33,678,474 41,615,868 USD 6,600,000 Bank of Montreal Chicago 5.35% 03/12/2009 7,786,967 7,620,015 1,205,000 Bank of Nova Scotia* 46,127,672 64,093, ,944 BNP Paribas 78,630,573 77,769, ,400 Canadian Imperial Bank of Commerce 36,013,358 48,131,276 3,800,000 Citigroup Finance Canada Inc. 4.39% 08/04/2009 3,798,822 3,796, ,650 Citigroup Inc. 23,711,602 25,763,654 10,290,000 Credit Agricole SA % 10/06/ ,290,000 10,290,000 7,500,000 General Electric Capital Corp % 08/27/2008 7,514,318 7,514,325 6,533,000 HBOS Treasury Services PLC % 09/29/2009 6,533,000 6,536,920 29,700,000 HSBC Bank Canada % 06/02/ ,700,000 29,700, ,400 ING Groep NV * 45,051,193 45,217, ,100 KKR Private Equity Investors LP, Subscription Receipts 23,215,295 23,464,942 1,679,020 Manulife Financial Corp. 42,945,484 66,657,094 18,000,000 Merrill Lynch % 11/09/ ,000,000 18,000,000 3,348,220 Royal Bank of Canada* 128,485, ,522,650 2,940 Sumitomo Mitsui Financial Group Inc.* 24,004,081 30,821,251 2,106,881 TorontoDominion Bank* 104,892, ,259, ,800 UBS AG* 48,857,999 50,741,512 4,500,000 Woodbridge Finance Corp % 09/08/2008 4,500,000 4,500, ,736, ,016,830 ENERGY (19.5%) 325,700 Anadarko Petroleum Corp. 15,838,283 16,162, ,000 Canadian Oil Sands Trust 18,647,073 19,668,960 1,255,800 Enbridge Inc. 48,298,801 47,293,428 1,599,800 EnCana Corp. 72,711,131 93,428, ,700 Imperial Oil Ltd. 24,985,336 34,055, ,300 Nexen Inc. 28,764,607 50,868, ,500 Noble Corp. 44,937,188 45,192, ,100 Penn West Energy Trust 7,871,231 11,145,557 3,477,600 PetroCanada 154,617, ,013, ,800 Rowan Cos. Inc. 20,231,338 20,086,159 1,173,351 Suncor Energy Inc. 98,716, ,078,885 3,012,600 Talisman Energy Inc. 40,414,671 61,035, ,064 Total SA 26,743,011 30,338, ,500 Total SA, ADR 11,235,375 12,124, ,500 TransCanada Corp.* 29,152,214 31,581, ,700 Transocean Inc.* 29,845,342 30,816, ,922 Weatherford International Ltd. 21,887,467 29,467, ,400 XTO Energy Inc. 20,452,045 22,236, ,349, ,595,105 MATERIALS (16.9%) 94,400 Aber Diamond Corp.* 3,355,412 4,063, ,900 Agrium Inc. 26,962,030 42,438,515 73,370 Air Liquide* 14,017,330 20,649, ,900 Air Products and Chemicals Inc. 37,940,484 43,284, ,700 Alcan Inc. 29,993,114 31,275, ,023 Anglo American PLC 20,325,555 22,016, ,100 Arch Coal Inc. 8,774,887 7,550,787 3,678,731 Barrick Gold Corp. 110,726, ,177,399 1,197,909 BHP Billiton PLC 25,204,263 30,833,543 1,893,590 Cameco Corp.* 76,298,468 89,566,807 MATERIALS (16.9%) (cont d) 887,000 Cia Vale do Rio Doce, ADR 23,752,881 37,880,862 2,913,545 Eldorado Gold Corp.* 14,144,776 19,666, ,479 Energy Resources of Australia Ltd.* 5,241,096 15,541, ,800 Goldcorp Inc. 19,702,965 16,759, ,900 Holcim Ltd. 23,119,920 35,018,838 3,342,055 ICLIsrael Chemicals Ltd. 17,194,130 26,382, ,090 Lonmin PLC 30,958,729 33,645,754 2,412,800 Paladin Resources Ltd.* 10,168,987 22,004, ,872 Rio Tinto PLC 20,570,170 21,220, ,000 Teck Cominco Ltd., Class B 14,714,455 14,488, ,200 Umicore 15,228,469 24,672,856 1,420,800 Yamana Gold Inc. * 16,214,871 23,713, ,609, ,851,432 INDUSTRIALS (14.2%) 162,300 Alliant Techsystems Inc.* 16,588,108 16,474, ,000 Burlington Northern Santa Fe Corp. 10,945,200 13,279, ,700 CAE Inc. 4,076,527 4,315, ,150 Canadian National Railway Co. 25,883,091 37,586, ,607 Canadian Pacific Railway Ltd. 19,469,251 31,605, ,400 Cooper Industries Inc., 16,209,576 16,019, ,350 Demag Cranes AG 8,213,227 9,281, ,500 Dexit Inc.* 1,731, ,458 13,973,617 Dyno Nobel Ltd.* 30,368,849 30,543,140 85,900 Eaton Corp. 8,357,468 8,287, ,200 Emerson Electric Co., Preferred Rights 28,141,938 30,307, ,414 Finmeccanica SpA* 24,704,848 32,979, ,300 Finning International Inc.* 25,630,706 41,079,438 4,200,000 Greater Toronto Airports Authority % 10/24/2008 4,200,000 4,200, ,427 Koninklijke Vopak NV * 18,585,585 32,478, ,800 Kuehne & Nagel International AG* 20,235,505 34,732, ,500 MacDonald Dettwiler & Associates Ltd.* 21,575,576 25,144, ,800 Manitowoc Co. 17,918,225 22,503,295 1,505,400 Nissan Motor Co. Ltd.* 20,416,334 18,628, ,500 OSG Corp.* 4,472,079 4,365, ,600 Randstad Holding NV* 20,820,705 31,392, ,800 Rheinmetall AG* 19,009,608 23,203,615 1,820,700 RollsRoyce Group PLC 19,751,128 20,443, ,785,440 RollsRoyce Group PLC, Class B 244, , ,550 Siemens AG, Registered Shares 20,239,947 20,553,230 1,299,686 Tesco PLC 9,259,290 13,117,032 73,250 USG People NV 3,503,494 3,488, ,600 Waste Management Inc. 10,263,469 9,916, ,800 WW Grainger Inc. 46,373,540 54,647, ,189, ,124,919 CONSUMER STAPLES (7.9%) 2,004,100 Agricore United 15,800,494 33,067, ,300 Alimentation CoucheTard Inc., Class B 20,325,012 20,091, ,046 Altria Group Inc. 15,055,726 15,921, ,900 AnheuserBusch Cos. Inc. 20,891,338 20,734, ,200 Bunge Ltd.* 27,779,222 35,331, ,900 Cosan SA Industria e Comercio 4,084,220 5,226, ,505 CVS Corp.* 27,448,644 31,631, ,000 Fomento Economico Mexicano SA de CV, ADR 31,231,706 46,774, ,812 Groupe Danone* 31,528,522 32,216, ,500 InBev NV 9,776,854 18,546,528 43,800 Nestle SA, Registered Shares 15,402,833 19,691,401 *Denotes all or part of securities lent. All common shares unless otherwise noted. Percentages shown in brackets relate investments at market value to total net assets of the Fund. 7 CIG 677

10 Signature Select Canadian Fund Statement of Investment Portfolio March 31, 2007 CONSUMER STAPLES (7.9%) (cont d) 333,508 Procter & Gamble Co. 24,797,814 24,319, ,740 Saputo Inc. 8,787,296 10,932, ,700 Shoppers Drug Mart Corp. 13,247,668 16,506, ,157, ,992,907 CONSUMER DISCRETIONARY (5.2%) 350,800 Canadian Satellite Radio Holdings Inc.* 3,989,649 2,280,200 1,371,450 Comcast Corp., 34,868,170 41,089, ,150 Continental AG* 29,435,447 30,762, ,800 ebay Inc. 18,619,393 21,234,004 1,460,400 Rogers Communications Inc., Class B* 25,737,348 55,188, ,500 RONA Inc.* 9,527,975 10,219,975 6,600 Starbucks Corp. 237, ,964 1,122,200 Thomson Corp.* 49,095,035 53,652, ,900 Universo Online SA 2,889,178 1,921, ,400, ,586,631 INFORMATION TECHNOLOGY (4.9%) 1,108,700 Adobe Systems Inc. 52,595,370 53,377, ,300 Ciena Corp.* 20,842,234 22,985,643 1,505,100 Corning Inc. 33,670,249 39,515, ,500 QUALCOMM Inc. 37,836,460 42,480, ,800 Research in Motion Ltd. (USD) 38,404,686 46,455, ,348, ,815,677 TELECOMMUNICATION SERVICES (1.6%) 2,586,675 Singapore Telecommunications Ltd. 4,502,077 6,456,746 9,538,000 Singapore Telecommunications Ltd., Restricted Shares 18,278,882 23,808, ,700 TELUS Corp. 22,552,133 37,619,430 45,333,092 67,884,520 UTILITIES (1.1%) 3,200,000 Canadian Hydro Developers Inc.* 17,184,282 20,160, ,700 Sempra Energy 13,581,982 13,503, ,500 Suez SA* 12,113,717 12,999,059 42,879,981 46,662,207 HEALTH CARE (0.3%) 2,068,700 Patheon Inc.* 19,223,566 9,722, ,200 Tenet Healthcare Corp. 10,140,306 4,240,442 29,363,872 13,963,332 WARRANTS (0.1%) 1,479,450 Iamgold Corp., Warrants (12Aug08) 252,469 1,864,107 1,617 Lucent Technologies Inc., Warrants ,469 1,864,284 PRIVATE PLACEMENTS (0.1%) 58,685 Syndesis Ltd., Preferred, Private Placement 203, ,269 Currency Codes: USD U.S. Dollar Total Bonds & Equities (93.4%) 3,222,824,696 3,894,935,113 Short Term Notes (6.3%) 263,292, ,292,721 DERIVATIVE INSTRUMENTS Foreign Currency Forward Contracts (0.1%) (see Schedule A) 2,848,929 Long Option Contracts (0.1%) (see Schedule B) 1,524,580 1,264,659 Total Investments (99.9%) 3,487,641,997 4,162,341,422 Other Assets (net) (0.1%) 12,160,160 Total Net Assets (100.0%) 4,174,501,582 Schedule A Foreign Currency Forward Contracts (0.1%) Credit Market Contracts Pay Receive Price Due Date Rating Value $ 1 (35,000,000) Australian $ 32,200,000 Canadian $ May07 A1+ (368,303) 2 (62,000,000) European Euro 95,700,954 Canadian $ May07 A1 25,084 1 (42,500,000) Swiss Franc 41,019,603 Canadian $ May07 A1+ 500,161 1 (14,184,000) US $ 16,571,876 Canadian $ May07 A1 226,736 2 (59,361,000) US $ 69,387,287 Canadian $ Jun07 A1+ 1,016,672 2 (63,478,000) US $ 73,880,905 Canadian $ May07 A1 717,813 2 (70,200,000) US $ 81,738,805 Canadian $ Apr07 A1 730,766 Total Foreign Currency Forward Contracts Value 2,848,929 Schedule B Long Option Contracts (0.1%) No. of underlying Underlying Expiry Strike Premium Paid Market Contracts Interest Interest Date Price (Received) $ Value $ 1, ,100 Kraft Foods Inc. Put 24Sep , , ,600 Research In Motion Ltd. Call 22Jan , , ,500 Research In Motion Ltd. Call 19Jun , ,046 Total Long Option Contracts Value 1,524,580 1,264,659 *Denotes all or part of securities lent. All common shares unless otherwise noted. Percentages shown in brackets relate investments at market value to total net assets of the Fund. 8

11 Signature Select Canadian Fund Financial Statements Statements of Net Assets (in $000 s except for per unit amounts and units outstanding) Assets Investments at market value* Cash Short term investments Margin for short sales Income taxes recoverable Daily variation margin on derivative investments Unrealized gain on derivative investments Cash collateral received for securities on loan (Note 5) Premium paid for options contract Receivable for unit subscriptions Receivable for securities sold Receivable for dividends and accrued interest Liabilities Bank overdraft Management fees payable Accrued expenses Unrealized loss on derivative investments Premium received from options contract Payable for securities purchased Payable for unit redemptions Payable for cash collateral under securities lending (Note 5) Investments sold short at market value* Distributions payable Net assets and unitholders' equity *Investments at cost Investments sold short at cost Net assets per class Class Z Insight Units Net asset value per unit Class Z Insight Units March 31, 2007 March 31, ,894,935 3,625,956 7, , ,593 2,589 1,071 5,911 1,525 6,531 63,187 20,346 39,435 5,108 6,310 4,201,570 3,938, ,428 23,737 6,626 5,522 5,911 27,068 35,170 4,174,502 3,903,746 3,222,825 2,956,027 3,261,328 3,024,731 26,978 18, , ,684 58,173 55,316 5,686 5, Statements of Operations (in $000 s except for per unit amounts) Income Dividends Interest Securities lending (Note 5) Derivative income (loss) Income distribution from investments Less: Foreign withholding taxes Expenses Management fees (Note 4) Administrative fees (Note 4) Interest expense Legal fees Audit fees Goods and services tax Net income (loss) for the period Realized and unrealized gain (loss) on investments (see Schedule of Commissions) Realized gain (loss) on investments Foreign exchange gain (loss) Capital gain distribution from investments Change in unrealized appreciation (depreciation) of investments Net gain (loss) on investments per class Class Z Insight Units per unit (Note 2) Class Z Insight Units 53,754 52,660 18,635 13, ,204 (3,465) (1,957) 72,802 64,908 61,547 59,082 6,228 6, ,224 4,553 72,104 69, (4,953) 546, , (1,556) 3, , , , , , , ,774 3,375 5, , ,949 7,815 8, , Number of units outstanding (see Schedule of Fund Unit Transactions) Class Z Insight Units 156,986, ,246,659 1,819,357 1,226,233 53,593,532 52,592,982 5,078,769 4,882, , ,063 9

12 Signature Select Canadian Fund Financial Statements Statements of Changes in Net Assets Statements of Changes in Net Assets (cont d) 3,024,731 1,672, , , , ,669 (741,253) (920,740) 797, , ,691 (379,771) (168,955) (379,771) (168,955) 422, ,774 3,261,328 3,024,731 Class Z 55,316 2,674 1,855 7,006 2,186 (7,616) (6,644) 51,246 2,064 48,643 (7,022) (2,194) (7,022) (2,194) 7,815 8,867 58,173 55,316 18,005 17,922 12,875 10,285 3,027 1,444 (7,132) (15,726) 8,770 (3,997) (3,172) (1,493) (3,172) (1,493) 3,375 5,573 26,978 18,005 Insight Units 5,010 3,794 1,644 2, (1,727) (2,103) (682) (362) (682) (362) 762 1,318 5,686 5, , , , , ,391 54,610 (268,699) (220,039) 10, ,786 (106,391) (57,466) (106,391) (57,466) 117, , , ,684 Total Fund 3,903,746 2,220, ,553 1,108, , ,271 (1,026,427) (1,165,252) 849, ,854 1,018,383 (497,038) (230,470) (497,038) (230,470) 551, ,481 4,174,502 3,903,746 10

13 Signature Select Canadian Fund Financial Statements Supplementary Schedules Schedule of Fund Unit Transactions Schedule of Commissions Balance, beginning of period Units issued for cash Units issued for reinvested distributions (Note 6) Units redeemed Units issued on fund merger (Note 1) Balance, end of period 147,246, ,933,532 26,970,673 43,366,457 18,731,412 9,019,618 (35,961,833) (50,039,278) 43,966, ,986, ,246,659 Brokerage commissions 6,465 7,345 Soft Dollar commissions Balance, beginning of period Units issued for cash Units issued for reinvested distributions (Note 6) Units redeemed Units issued on fund merger (Note 1) Balance, end of period 1,226,233 1,516, , , , ,800 (482,280) (1,184,438) 1,819,357 1,226,233 Schedule of Loss Carry Forwards Net capital loss carried forward March 31, 2007 Balance, beginning of period Units issued for cash Units issued for reinvested distributions (Note 6) Units redeemed Units issued on fund merger (Note 1) Balance, end of period Class Z Balance, beginning of period Units issued for cash Units issued for reinvested distributions (Note 6) Units redeemed Units issued on fund merger (Note 1) Balance, end of period Insight Units Balance, beginning of period Units issued for cash Units issued for reinvested distributions (Note 6) Units redeemed Units issued on fund merger (Note 1) Balance, end of period 52,592,982 43,133,615 11,248,764 21,769,982 7,194,937 4,006,061 (17,443,151) (16,316,676) 53,593,532 52,592,982 4,882, , , , ,986 (669,434) (628,221) 5,124,575 5,078,769 4,882, , , , ,680 47,819 27,700 (118,558) (160,071) 387, ,063 Noncapital losses expiring: Total Schedule of Fees (%) Annual management fee rate Class Z Insight Units March 31, Paid directly by investor Schedule of Securities Lending (Note 5) Loaned Collateral (noncash) March 31, 2007 March 31, , , , ,000 Annual fixed administration fee Class Z Insight Units 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. 11

14 Signature Canadian Balanced Fund Statement of Investment Portfolio March 31, 2007 FINANCIALS (22.0%) 1,240,000 American Express Canada 4.7% 05/20/2011 1,239,901 1,255, ,000 Bank of Ireland 3.8% 09/22/ , , ,100 Bank of Montreal 10,699,446 12,696,012 USD 2,700,000 Bank of Montreal Chicago 5.35% 03/12/2009 3,185,578 3,117, ,200 Bank of Nova Scotia 12,325,549 16,552, ,704 BNP Paribas 19,172,278 18,895,927 1,925,000 Calloway REIT, Callable 4.51% 09/22/2010 1,907,752 1,909,600 14,093,000 Canada Housing Trust No % 03/15/ ,081,629 14,058,331 6,000,000 Canada Housing Trust No % 12/15/2008 6,068,160 5,996, ,900 Canadian Imperial Bank of Commerce 8,912,947 11,511,831 1,650,000 Canadian Imperial Bank of Commerce 4.35% 11/01/2011 1,657,854 1,650,940 2,100,000 Canadian Imperial Bank of Commerce 4.75% 12/22/2014 2,116,720 2,135,091 4,100,000 Canadian Oil Sands Ltd. 5.75% 04/09/2008 4,160,311 4,155,186 1,800,000 Canadian Western Bank 6.199% 12/31/2056 1,800,000 1,820,700 2,925,000 Canadian Western Bank 5.07% 03/22/2012 2,925,000 2,925,000 10,000,000 Canadian Western Bank 5.96% 10/24/ ,188,301 10,046,011 1,400,000 CIT Group Holdings Inc. 4.72% 02/10/2011 1,413,428 1,405,180 1,600,000 Citigroup Finance Canada Inc. 4.39% 08/04/2009 1,599,504 1,598, ,700 Citigroup Inc. 7,327,941 8,102,822 1,975,000 Commerzbank AG VAR 4.5% 12/15/2016 1,970,339 1,961,195 1,500,000 Cooperators Financial Services Ltd. 5.07% 07/20/2012 1,516,980 1,506,150 2,000,000 Countrywide Financial Corp. 4.69% 06/01/2009 2,004,400 2,005,820 3,970,000 Credit Agricole SA % 10/06/2008 3,970,000 3,970,000 1,780,000 Deutsche Bank AG 4.9% 08/22/2016 1,779,359 1,813,126 3,000,000 First Capital Realty Inc. 5.25% 03/30/2011 3,003,198 3,037,290 2,225,000 First Capital Realty Inc. 5.34% 04/01/2013 2,227,626 2,243, ,000 First Captial Realty Inc. 5.49% 12/01/ , ,884 2,150,000 GE Capital Canada Funding 4.4% 06/01/2014 2,146,818 2,137,122 3,800,000 General Electric Capital Corp % 08/27/2008 3,807,254 3,807,258 2,524,000 HBOS Treasury Services PLC % 09/29/2009 2,524,000 2,525,514 6,500,000 HSBC Bank Canada % 06/02/2008 6,500,000 6,500,000 2,500,000 HSBC Bank Canada 4.39% 11/21/2008 2,500,000 2,500,000 1,500,000 HSBC Bank Canada 4.94% 03/16/2021 1,499,055 1,526,190 2,120,000 HSBC Canada Asset Trust Securities 5.149% 06/30/2015* 2,149,564 2,143, ,700 ING Groep NV 10,781,378 10,821,222 1,500,000 Kaupthing Bank 4.7% 02/15/2010 1,498,500 1,507,815 1,950,000 Kimco North Trust II 4.45% 04/21/2010 1,959,755 1,947, ,900 KKR Private Equity Investors LP, Subscription Receipts 5,592,612 5,652, ,400 Manulife Financial Corp. 12,693,499 18,039,680 7,200,000 Merrill Lynch % 11/09/2009 7,200,000 7,200,000 1,480,000 Met Life Global Funding 4.35% 02/10/2009 1,474,213 1,462,181 1,460,000 Met Life Global Funding 4.5% 02/10/2011 1,456,832 1,465, ,000 MI Developments Inc. 6.05% 12/22/ , , ,000 National Bank of Canada 4.456% 11/02/ , ,168 1,220,000 Newcourt Credit Group Inc. 7.05% 06/28/2007 1,246,645 1,227,235 3,600,000 Nordea Bank AB 3.95% 08/05/2015 3,576,549 3,551,760 *Denotes all or part of securities lent. CI Investments Inc., the manager, is a corporation controlled by CI Financial Income Fund. Sun Life Financial Inc. owns a significant interest in CI Financial Income Fund, and is therefore, considered an affiliate to CI Investments Inc. Investment in Sun Life Financial Inc. is identified above. All common shares unless otherwise noted. Percentages shown in brackets relate investments at market value to total net assets of the Fund. FINANCIALS (22.0%) (cont d) 850,000 RBC Capital Trust 4.87% 12/31/ , ,235 2,230,000 RioCan REIT 4.7% 06/15/2012* 2,209,248 2,200, ,400 Royal Bank of Canada 33,143,751 46,598,000 2,300,000 Royal Bank of Canada 4.92% 07/06/2011 2,299,793 2,351,589 1,970,000 Royal Bank of Scotland 4.25% 03/30/2015 1,980,655 1,962,829 2,700,000 Royal Bank of Scotland 5.37% 05/12/2049 2,686,726 2,780,487 1,520,000 Scotiabank Capital Trust 5.65% 12/31/2036 1,520,000 1,566, Sumitomo Mitsui Financial Group Inc.* 6,998,628 8,439,152 2,400,000 Sun Life Financial Inc. 5% 07/11/2031 2,396,112 2,455,992 2,800,000 Textron Financial Canada Funding Corp. 4% 04/01/2008 2,779,040 2,789, ,700 TorontoDominion Bank 33,478,438 43,991, ,000 TorontoDominion Bank 4.779% 12/14/ , ,094 2,635,000 TorontoDominion Bank 4.87% 10/28/2016 2,635,000 2,685,935 2,500,000 TorontoDominion Bank 4.97% 10/30/2104 2,500,850 2,522, ,700 UBS AG* 13,751,096 13,902,818 1,240,000 Wells Fargo Financial Canada Corp. 4.38% 06/30/2015 1,239,810 1,222,268 1,000,000 Woodbridge Finance Corp % 09/08/2008 1,000,000 1,000, ,095, ,515,561 ENERGY (15.2%) 2,638,388 Alliance Pipeline LP 6.765% 12/31/2025* 2,890,211 2,994,805 2,000,000 AltaGas Income Trust 5.07% 01/19/2012 1,999,300 2,042, ,600 Anadarko Petroleum Corp. 4,892,022 4,992,020 1,490,000 Brookfield Power Corp. 5.84% 11/05/2036 1,489,568 1,479,913 3,470,000 Canadian Natural Resources Ltd. 4.5% 01/23/2013 3,439,017 3,425, ,100 Canadian Oil Sands Trust 4,610,871 4,863, ,000 Enbridge Gas Distribution Inc. 10.8% 04/15/ , ,492 1,800,000 Enbridge Gas Distribution Inc. 4.77% 12/17/2021 1,799,244 1,777, ,000 Enbridge Inc. 12,613,318 12,352, ,726 EnCana Corp. 18,799,945 22,993, ,500 Imperial Oil Ltd. 6,494,981 8,281, ,200 Nexen Inc. 9,345,680 15,218, ,800 Noble Corp. 9,638,791 9,792,532 4,200,000 Nova Gas Transmission 8.9% 05/27/2025 5,352,500 5,890, ,500 Penn West Energy Trust 2,688,741 3,413,985 1,068,900 PetroCanada 49,027,008 48,260, ,200 Rowan Cos. Inc. 4,670,781 4,356, ,213 Suncor Energy Inc. 24,500,194 25,583,062 2,500,000 Suncor Energy Inc. 5.39% 03/26/2037 2,493,000 2,479, ,200 Talisman Energy Inc. 14,587,681 18,845, ,084 Total SA 7,378,815 8,176,450 46,700 Total SA, ADR 3,497,774 3,762, ,200 TransCanada Corp.* 7,510,017 8,176,220 88,600 Transocean Inc. 8,021,943 8,357, ,376 Weatherford International Ltd. 7,989,592 10,069,108 85,000 XTO Energy Inc. 4,947,106 5,378, ,816, ,094,399 GOVERNMENT BONDS (14.1%) 13,250, Ontario School Board Trust 5.9% 06/02/ ,582,478 15,572,460 3,000,000 Austria Government International Bond 5.375% 12/01/2034 3,228,060 3,354, CIG 685

15 Signature Canadian Balanced Fund Statement of Investment Portfolio March 31, 2007 GOVERNMENT BONDS (14.1%) (cont d) 5,389,000 Canada Housing Trust No % 09/15/2011 5,517,959 5,491,553 9,235,000 Canadian Government Bond 3% 06/01/2007* 9,131,205 9,216,253 8,144,000 Canadian Government Bond 3.75% 09/01/2011* 8,047,102 8,058,488 13,195,000 Canadian Government Bond 4% 06/01/2016* 13,083,848 13,077,564 3,247,000 Canadian Government Bond 4% 09/01/2010 3,237,354 3,247,487 6,770,000 Canadian Government Bond 4.5% 06/01/2015* 7,025,639 6,960,305 32,650,000 Canadian Government Bond 5% 06/01/2014* 34,682,860 34,504,520 20,180,000 Canadian Government Bond 5.75% 06/01/2033* 25,341,403 25,124,100 39,512,000 Canadian Government Bond 6% 06/01/2008* 40,561,970 40,361,113 3,200,000 Canadian Government Bond 8% 06/01/2023 4,627,820 4,607,648 1,340,000 Canadian Government Bond Residual Strip 06/01/ , ,477 6,500,000 City of Montreal 6% 06/01/2043 7,823,400 7,812,545 4,250,000 Eurofima 5.15% 12/13/2019 4,407,606 4,489,572 4,751,030 New Brunswick FM Project Co. Inc., Callable 6.47% 11/30/2027 5,463,001 5,522, ,785 Ontario School Boards Financing Corp. 7.2% 06/09/ , ,657 3,000,000 Province of Ontario 4.4% 03/08/2016 2,924,700 3,013,260 5,070,000 Province of Ontario 4.6% 12/02/2012 5,079,798 5,087,694 1,000,000 Province of Ontario 4.7% 06/02/ ,640 1,013,870 3,000,000 Province of Ontario 5.6% 06/02/2035 3,389,100 3,464,490 10,500,000 Province of Quebec 4.5% 12/01/ ,583,730 10,520,370 1,400,000 Province of Quebec 5.35% 06/01/2025 1,515,612 1,507,338 2,350,000 Province of Quebec 4.5% 12/01/2017 2,344,290 2,348,355 2,760,000 University of British Columbia 6.65% 12/01/2031 2,979,188 3,558,440 5,850,000 University of Ottawa 6.28% 04/15/2043 6,557,500 7,439, ,872, ,169,414 MATERIALS (11.6%) 21,500 Aber Diamond Corp.* 768, , ,100 Agrium Inc. 6,968,357 10,958,885 21,813 Air Liquide* 4,329,714 6,139, ,700 Air Products and Chemicals Inc. 10,564,021 12,014, ,700 Alcan Inc. 7,081,164 7,384,086 86,242 Anglo American PLC 4,842,003 5,244,896 45,200 Arch Coal Inc.* 1,857,371 1,601,575 1,024,653 Barrick Gold Corp. 31,406,504 33,752, ,844 BHP Billiton PLC 6,182,541 7,563, ,040 Cameco Corp.* 18,727,004 21,712, ,100 Cia Vale do Rio Doce, ADR 6,090,342 9,698, ,005 Eldorado Gold Corp.* 4,406,820 5,987, ,550 Energy Resources of Australia Ltd.* 1,208,592 3,545,892 1,380,000 Falconbridge Ltd. 8.5% 12/08/2008 1,515,075 1,467, ,200 Goldcorp Inc. 4,730,263 4,023,492 84,100 Holcim Ltd.* 6,669,469 9,722,959 1,015,800 ICLIsrael Chemicals Ltd. 5,333,960 8,018, ,647 Lonmin PLC 7,331,923 7,968,287 4,000,000 Noranda Operating Trust 6.529% 12/20/2010 4,103,483 4,180, ,600 Paladin Resources Ltd.* 2,282,627 4,939,392 87,108 Rio Tinto PLC 5,566,891 5,742,819 31,600 Umicore 4,218,522 6,486, ,300 Yamana Gold Inc.* 4,361,493 6,380, ,546, ,459,356 INDUSTRIALS (11.3%) 2,997,399 Access Roads Edmonton Ltd % 09/30/2037 3,323,726 3,424,828 40,800 Alliant Techsystems Inc. 4,169,938 4,141,520 1,505,000 Altalink Investments 5.019% 11/21/2012 1,499,401 1,509,470 2,275,000 Altalink LP 5.249% 09/22/2036 2,275,000 2,303,346 41,100 Burlington Northern Santa Fe Corp. 3,145,809 3,816,557 77,200 CAE Inc. 948,773 1,004, ,100 Canadian National Railway Co. 7,695,175 10,087, ,887 Canadian Pacific Railway Ltd. 6,090,309 8,955,761 85,200 Cooper Industries Inc., 4,478,101 4,425,552 33,900 Demag Cranes AG 2,257,208 2,550, ,000 Dexit Inc. 399,068 88,500 3,560,100 Dyno Nobel Ltd.* 7,715,926 7,781,567 21,500 Eaton Corp. 2,091,801 2,074, ,800 Emerson Electric Co., Preferred Rights 6,775,705 7,303, ,500 Finmeccanica SpA 6,339,302 8,457, ,800 Finning International Inc. 7,680,006 11,600,028 2,000,000 FortisAlberta Inc. 5.33% 10/31/2014 2,103,200 2,091,380 2,000,000 Greater Toronto Airports Authority % 10/24/2008 2,000,000 2,000,000 2,638,431 Greater Toronto Airports Authority 6.45% 07/30/2029 2,852,731 2,964, ,300 Koninklijke Vopak NV 5,756,403 9,799, ,000 Kuehne & Nagel International AG* 6,689,431 10,254, ,300 MacDonald Dettwiler & Associates Ltd. 5,195,469 6,054,822 84,500 Manitowoc Co. 4,934,670 6,197, ,400 Nissan Motor Co. Ltd.* 4,765,710 4,348,348 60,000 OSG Corp.* 1,075,121 1,049,910 95,800 Randstad Holding NV 5,845,846 8,577,870 64,900 Rheinmetall AG 5,690,707 6,946, ,800 RollsRoyce Group PLC 5,432,425 5,623,163 29,647,360 RollsRoyce Group PLC, Class B 67,371 69,037 42,900 Siemens AG, Registered Shares 5,213,412 5,294,107 6,942,024 Strait Crossing Development Inc. 6.17% 09/15/2031 6,774,926 7,387, ,755 Tesco PLC 2,070,174 2,934,434 20,000 USG People NV 956, ,454 55,800 Waste Management Inc. 2,286,029 2,216, ,700 WW Grainger Inc. 13,462,213 15,846, ,057, ,134,392 CONSUMER STAPLES (6.4%) 695,900 Agricore United 5,666,306 11,482, ,700 Alimentation CoucheTard Inc., Class B 4,901,229 4,844,898 37,741 Altria Group Inc. 3,618,167 3,826,214 85,500 AnheuserBusch Cos. Inc. 5,018,822 4,981,100 91,400 Bunge Ltd.* 6,821,670 8,676,320 62,500 Cosan SA Industria e Comercio 1,112,281 1,307, ,502 CVS Corp. 7,884,101 9,085, ,600 Fomento Economico Mexicano SA de CV, ADR 10,258,481 14,605,830 1,250,000 George Weston Ltd. 7.1% 02/05/2032 1,444,619 1,430,500 41,308 Groupe Danone 7,624,641 7,791,078 70,500 InBev NV 3,288,112 5,876,540 USD 3,376,000 Jean Coutu Group Inc. 8.5% 08/01/2014 3,725,543 4,233,934 1,700,000 Metro Inc. 5.97% 10/15/2035 1,646,254 1,710,183 3,000,000 Molson Coors Capital Finance Co., Senior Notes 5% 09/22/2015 2,931,120 2,974,350 *Denotes all or part of securities lent. All common shares unless otherwise noted. Percentages shown in brackets relate investments at market value to total net assets of the Fund. 13

16 Signature Canadian Balanced Fund Statement of Investment Portfolio March 31, 2007 CONSUMER STAPLES (6.4%) (cont d) 12,200 Nestle SA, Registered Shares* 4,303,073 5,484,819 80,485 Procter & Gamble Co. 5,984,429 5,869,066 57,022 Saputo Inc. 2,116,534 2,633,276 91,900 Shoppers Drug Mart Corp. 3,846,277 4,700,685 82,191, ,513,879 CONSUMER DISCRETIONARY (3.5%) 87,400 Canadian Satellite Radio Holdings Inc.* 976, , ,200 Comcast Corp., 8,673,807 10,192,567 54,900 Continental AG* 7,836,548 8,192, ,000 ebay Inc. 4,228,647 4,822, ,200 Rogers Communications Inc., Class B 6,938,456 13,498, ,900 RONA Inc.* 2,685,457 2,880,497 1,380,000 RONA Inc. 5.4% 10/20/2016 1,377,130 1,372,672 1,600 Starbucks Corp. 57,693 57, ,000 Thomson Corp. 12,763,373 13,912,710 74,000 Universo Online SA 678, ,457 46,216,724 55,949,239 INFORMATION TECHNOLOGY (3.0%) 239,600 Adobe Systems Inc. 11,365,213 11,535, ,100 Ciena Corp. 4,538,333 5,005, ,300 Corning Inc. 7,993,131 9,380, ,200 QUALCOMM Inc. 8,519,683 9,564,934 75,400 Research in Motion Ltd. (USD) 9,873,693 11,881,851 42,290,053 47,367,961 TELECOMMUNICATION SERVICES (2.1%) 3,000,000 Bell Aliant Regional 5.41% 09/26/2016 3,011,367 3,022,440 3,400,000 France Telecom SA 4.95% 06/23/2011 3,409,862 3,444,336 6,900,000 Rogers Wireless Inc % 12/15/2011* 7,215,150 7,675,629 1,000,353 Singapore Telecommunications Ltd. 1,737,790 2,497,038 2,115,650 Singapore Telecommunications Ltd., Restricted Shares 4,054,489 5,280, ,300 TELUS Corp. 7,628,007 11,208,670 27,056,665 33,129,107 UTILITIES (1.0%) 3,025,000 Brascan Power Corp. 4.65% 12/16/2009 3,046,487 3,039, ,100 Canadian Hydro Developers Inc. 4,510,718 5,210,730 44,100 Sempra Energy 3,124,477 3,106,358 49,900 Suez SA 2,831,262 3,038, ,000 Terasen Gas Inc. 5.55% 09/25/ , ,493 14,392,812 15,297,743 PRIVATE PLACEMENTS (0.8%) 1,450,000 Kimco North Trust III 5.18% 08/16/2013 1,446,042 1,478,870 USD 10,500,000 Masonite International Corp. 11% 04/06/ ,041,618 11,274,159 14,487,660 12,753,029 ASSET BACKED (0.6%) 3,105,000 Canada Capital Auto Receivables Asset Trust 3.383% 06/17/2008 3,101,243 3,072,304 1,100,000 CCIC 2006WEM 5.248% 01/15/2022 1,099,969 1,096,315 3,350,000 CCIC 2006WEM MBS 4.934% 09/15/2016 3,349,883 3,322,530 2,500,000 Merrill Lynch Financial Assets Inc % 03/12/2039 2,499,932 2,514,250 10,051,027 10,005,399 HEALTH CARE (0.3%) 591,800 Patheon Inc. 5,084,489 2,781, ,200 Tenet Healthcare Corp. 2,866,850 1,367,453 7,951,339 4,148,913 WARRANTS (0.1%) 451,450 Iamgold Corp., Warrants (12Aug08) 138, ,827 1,620 Lucent Technologies Inc., Warrants , ,005 Currency Codes: USD U.S. Dollar Total Bonds & Equities (92.0%) 1,301,164,930 1,467,107,397 Short Term Notes (7.5%) 119,746, ,746,503 DERIVATIVE INSTRUMENTS Foreign Currency Forward Contracts (0.1%) (see Schedule A) 1,105,714 Long Option Contracts (0.1%) (see Schedule B) 364, ,707 Total Investments (99.7%) 1,421,276,080 1,588,262,321 Other Assets (net) (0.3%) 10,164,892 Total Net Assets (100.0%) 1,598,427,213 Schedule A Foreign Currency Forward Contracts (0.1%) Credit Market Contracts Pay Receive Price Due Date Rating Value $ 1 (8,700,000) Australian $ 8,004,000 Canadian $ May07 A1+ (91,550) 2 (16,500,000) European Euro 25,466,633 Canadian $ May07 A1 4,506 1 (11,000,000) Swiss Franc 10,616,838 Canadian $ May07 A1+ 129,453 2 (12,350,000) US $ 14,380,097 Canadian $ Apr07 A1 128,683 2 (15,400,000) US $ 17,994,990 Canadian $ May07 A1 248,574 2 (18,899,458) US $ 21,996,694 Canadian $ May07 A1 213,670 1 (1,990,000) US $ 2,348,001 Canadian $ Apr07 A1+ 51,274 2 (24,500,000) US $ 28,639,632 Canadian $ Jun07 A1+ 421,104 Total Foreign Currency Forward Contracts Value 1,105,714 Schedule B Long Option Contracts (0.1%) No. of underlying Underlying Expiry Strike Premium Paid Market Contracts Interest Interest Date Price (Received) $ Value $ ,200 Kraft Foods Inc. Put 24Sep , , ,300 Research In Motion Ltd. Call 22Jan , , ,900 Research In Motion Ltd. Call 19Jun ,089 29,632 Total Long Option Contracts Value 364, ,707 *Denotes all or part of securities lent. All common shares unless otherwise noted. Percentages shown in brackets relate investments at market value to total net assets of the Fund. 14

17 Signature Canadian Balanced Fund Financial Statements Statements of Net Assets (in $000 s except for per unit amounts and units outstanding) Assets Investments at market value* Cash Short term investments Margin for short sales Income taxes recoverable Daily variation margin on derivative investments Unrealized gain on derivative investments Cash collateral received for securities on loan (Note 5) Premium paid for options contract Receivable for unit subscriptions Receivable for securities sold Receivable for dividends and accrued interest Liabilities Bank overdraft Management fees payable Accrued expenses Unrealized loss on derivative investments Premium received from options contract Payable for securities purchased Payable for unit redemptions Payable for cash collateral under securities lending (Note 5) Investments sold short at market value* Distributions payable Net assets and unitholders' equity *Investments at cost Investments sold short at cost Net assets per class Class Z Net asset value per unit Class Z March 31, 2007 March 31, ,467,107 1,344,750 2, ,747 12,785 1, , ,932 6,078 11,374 7,613 6,983 1,613,616 1,576, ,592 11,403 2,172 1,976 8,419 2,111 15,189 15,490 1,598,427 1,561,167 1,301,165 1,188,161 1,256,980 1,201,810 3,404 2, , , , , Statements of Operations (in $000 s except for per unit amounts) Income Dividends Interest Securities lending (Note 5) Derivative income (loss) Income distribution from investments Less: Foreign withholding taxes Expenses Management fees (Note 4) Administrative fees (Note 4) Interest expense Legal fees Audit fees Goods and services tax Net income (loss) for the period Realized and unrealized gain (loss) on investments (see Schedule of Commissions) Realized gain (loss) on investments Foreign exchange gain (loss) Capital gain distribution from investments Change in unrealized appreciation (depreciation) of investments Net gain (loss) on investments per class Class Z per unit (Note 2) Class Z 14,542 12,064 30,321 22, (974) (460) 44,120 34,718 26,665 24,792 2,716 2, ,832 1,912 31,261 29,242 12,859 5, , ,383 (298) (317) 10,116 95, , , , , , , ,616 (319) 16,377 18, (0.02) Number of units outstanding (see Schedule of Fund Unit Transactions) Class Z 77,029,998 73,514, , ,049 18,182,329 19,706,200 14,969,930 14,972,969 15

18 Signature Canadian Balanced Fund Financial Statements Statements of Changes in Net Assets Statements of Changes in Net Assets (cont d) 1,201, , , , ,395 68,213 (242,954) (291,430) 456,807 55, ,903 (114,113) (66,213) (8,858) (2,389) (122,971) (68,602) 122, ,402 1,256,980 1,201,810 Class Z 160,275 6,327 4,899 16,517 7,514 (23,176) (19,696) 156,685 (332) 149,402 (15,316) (7,435) (1,248) (107) (16,564) (7,542) 16,377 18, , ,275 2,339 1,314 2,256 2, (1,443) (1,645) 1, (260) (159) (21) (8) (281) (167) ,404 2,339 Total Fund 1,561, , , , ,465 75,892 (310,077) (312,771) 613,492 40, ,115 (152,432) (73,807) (12,660) (2,504) (165,092) (76,311) 161, ,942 1,598,427 1,561, ,743 1, ,062 25,276 (42,504) (15,796) 197,062 (22,743) (2,533) (25,276) 22,616 (319) 178, ,743 16

19 Signature Canadian Balanced Fund Financial Statements Supplementary Schedules Schedule of Fund Unit Transactions Schedule of Commissions Balance, beginning of period Units issued for cash Units issued for reinvested distributions (Note 6) Units redeemed Units issued on fund merger (Note 1) Balance, end of period 73,514,201 44,605,610 10,781,043 13,589,218 7,615,778 4,423,031 (14,881,024) (18,999,411) 29,895,753 77,029,998 73,514,201 Brokerage commissions 1,816 1,591 Soft Dollar commissions Balance, beginning of period Units issued for cash Units issued for reinvested distributions (Note 6) Units redeemed Units issued on fund merger (Note 1) Balance, end of period 216, , , ,591 26,172 16,176 (133,865) (160,392) 317, ,049 Schedule of Loss Carry Forwards Net capital loss carried forward March 31, 2007 Balance, beginning of period Units issued for cash Units issued for reinvested distributions (Note 6) Units redeemed Units issued on fund merger (Note 1) Balance, end of period Class Z Balance, beginning of period Units issued for cash Units issued for reinvested distributions (Note 6) Units redeemed Units issued on fund merger (Note 1) Balance, end of period 19,706, ,827 19,706,200 2,609,204 (4,279,902) 18,182,329 19,706,200 14,972, , ,489 1,571, ,937 (2,166,315) (1,907,927) 15,668,470 14,969,930 14,972,969 Noncapital losses expiring: Total Schedule of Fees (%) March 31, 2007 Schedule of Securities Lending (Note 5) Loaned Collateral (noncash) March 31, 2007 March 31, , , , ,336 Annual management fee rate Class Z Annual fixed administration fee Class Z Paid directly by investor 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. 17

20 Signature Global Income & Growth Fund Statement of Investment Portfolio March 31, 2007 U.S.A. (63.2%) USD 500,000 BellSouth Corp % 11/15/ , ,666 USD 1,100,000 Dow Jones CDX HY 6.75% 06/29/2012 1,269,020 1,257,303 23,900 ishares MSCI EAFE Index Fund 2,090,560 2,104,019 USD 243,000 John Deere Capital Corp. 5.43% 07/20/ , ,555 USD 500,000 Slm Corp. 5.58% 07/25/ , ,701 13,100 SPDR Trust Series 1 2,159,865 2,147,690 Transaction costs (1,120) Total Investments (63.2%) 6,963,706 6,944,934 Other Assets (net) (36.8%) 4,046,336 Currency Codes: USD U.S. Dollar Total Net Assets (100.0%) 10,991,270 All common shares unless otherwise noted. Percentages shown in brackets relate investments at market value to total net assets of the Fund. 18 CIG 2111

21 Signature Global Income & Growth Fund Financial Statements Statement of Net Assets (in $000 s except for per unit amounts and units outstanding) Statement of Operations (in $000 s except for per unit amounts) Assets Investments at market value* Cash Short term investments Margin for short sales Income taxes recoverable Daily variation margin on derivative investments Unrealized gain on derivative investments Cash collateral received for securities on loan (Note 5) Receivable for unit subscriptions Receivable for securities sold Receivable for dividends and accrued interest Liabilities Bank overdraft Management fees payable Accrued expenses Unrealized loss on derivative investments Premium received from options contract Payable for securities purchased Payable for unit redemptions Payable for cash collateral under securities lending (Note 5) Investments sold short at market value* Distributions payable Net assets and unitholders' equity *Investments at cost Investments sold short at cost Net assets per class Net asset value per unit March 31, ,945 2,552 2, ,498 1, ,507 10,991 6,964 8, , Income Dividends Interest Securities lending (Note 5) Derivative income (loss) Income distribution from investments Less: Foreign withholding taxes Expenses Management fees (Note 4) Administrative fees (Note 4) Interest expense Legal fees Audit fees Goods and services tax Net income (loss) for the period Realized and unrealized gain (loss) on investments and transaction costs (see Schedule of Commissions) Realized gain (loss) on investments Foreign exchange gain (loss) Capital gain distribution from investments Transaction costs Change in unrealized appreciation (depreciation) of investments Net gain (loss) on investments per class per unit (Note 2) Inception to March 31, (5) (1) (9) 21 (1) (19) (8) (9) (8) (2) 1 (0.03) (0.03) (0.02) Number of units outstanding (see Schedule of Fund Unit Transactions) 846,272 31, ,049 19

22 Signature Global Income & Growth Fund Financial Statements Statements of Changes in Net Assets Statements of Changes in Net Assets (cont d) Inception to March 31, 2007 Inception to March 31, , (217) 8,384 (39) (39) (8) 8,337 2, (17) 2,360 (16) (16) 1 2, (5) 313 (2) (2) (2) 309 Total Fund 11, (239) 11,057 (57) (57) (9) 10,991 20

23 Signature Global Income & Growth Fund Financial Statements Supplementary Schedules Schedule of Fund Unit Transactions Schedule of Commissions Inception to March 31, 2007 Inception to March 31, 2007 Balance, beginning of period Units issued for cash Units issued for reinvested distributions (Note 6) Units redeemed Units issued on fund merger (Note 1) Balance, end of period 865,564 2,647 (21,939) 846,272 Brokerage commissions Soft Dollar commissions 1 Balance, beginning of period Units issued for cash Units issued for reinvested distributions (Note 6) Units redeemed Units issued on fund merger (Note 1) Balance, end of period 31, (521) 31,371 Schedule of Loss Carry Forwards Net capital loss carried forward March 31, 2007 Balance, beginning of period Units issued for cash Units issued for reinvested distributions (Note 6) Units redeemed Units issued on fund merger (Note 1) Balance, end of period 238,265 1,549 (1,765) 238,049 Noncapital losses expiring: Total Schedule of Securities Lending (Note 5) Loaned Collateral (noncash) March 31, 2007 Schedule of Fees (%) March 31, 2007 Annual management fee rate Paid directly by investor Annual fixed administration fee 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. 21

24 Signature Income & Growth Fund Statement of Investment Portfolio March 31, 2007 FINANCIALS (21.9%) USD 3,517,000 Ace Cash Express Inc % 10/01/2014 3,997,085 4,182,361 91,300 Alexis Nihon REIT 1,075,704 1,698, ,100 Allied Properties REIT 2,093,117 3,005, ,500 American Capital Strategies Ltd.* 13,696,700 14,861, ,000 American Express Canada 4.7% 05/20/ , , ,840 Artis REIT 2,281,620 2,819, ,500 Bank of America Corp. 9,709,188 10,278, ,000 Bank of Ireland 3.8% 09/22/ , , ,100 Bank of Montreal 13,838,542 15,624,252 USD 4,400,000 Bank of Montreal Chicago 5.35% 03/12/2009 5,191,312 5,080, ,400 Bank of Nova Scotia 21,708,238 26,084, ,710 BNP Paribas 26,397,419 25,769,913 1,915,000 Boardwalk REIT, Callable 5.31% 01/23/2012 1,914,100 1,964, ,700 Boston Pizza Royalties Income Fund 1,972,344 1,887, ,045 Calloway REIT* 10,082,722 12,997,995 1,110,000 Calloway REIT, Callable 4.51% 09/22/2010 1,100,054 1,101,120 5,916,000 Canada Housing Trust No % 03/15/2011 5,910,993 5,901,447 1,915,000 Canada Housing Trust No % 03/15/2008* 1,910,864 1,918, ,500 Canadian Apartment Properties REIT* 2,071,798 3,349, ,900 Canadian Hotel Income Properties REIT 1,306,414 1,978, ,300 Canadian Imperial Bank of Commerce 12,843,615 15,759,887 1,275,000 Canadian Imperial Bank of Commerce 4.35% 11/01/2011 1,281,069 1,275, ,000 Canadian Oil Sands Ltd. 5.75% 04/09/ , ,768 1,025,000 Canadian Western Bank 6.199% 12/31/2056 1,025,000 1,036,788 4,225,000 Canadian Western Bank 5.07% 03/22/2012 4,225,000 4,225,000 13,500 CCS Income Trust 411, , ,900 Chartwell Seniors Housing REIT 5,412,392 5,899, ,500 CI Financial Income Fund 5,411,706 4,926,600 2,810,000 CIT Group Holdings Inc. 4.72% 02/10/2011 2,808,696 2,820,397 1,800,000 Citigroup Finance Canada Inc. 4.39% 08/04/2009 1,799,442 1,798,236 12,010,000 Citigroup Finance Canada Inc % 06/02/ ,010,841 12,010,000 8,001,000 Citigroup Finance Canada Inc % 10/24/2008 8,003,376 8,001, ,800 Citigroup Inc. 9,320,104 9,412, ,300 Cominar REIT 4,406,934 6,379,080 1,125,000 Commerzbank AG VAR 4.5% 12/15/2016 1,122,345 1,117,136 1,000,000 Cooperators Financial Services Ltd. 5.07% 07/20/2012 1,011,320 1,004,100 USD 2,027,000 CoucheTard Finance Corp., Callable 7.5% 12/15/2013 2,378,394 2,404,626 1,400,000 Countrywide Financial Corp. 4.69% 06/01/2009 1,403,080 1,404,074 5,020,000 Credit Agricole SA % 10/06/2008 5,020,000 5,020, ,900 Crombie REIT 1,255,674 1,763, ,400 Davis & Henderson Income Fund 2,938,894 2,546, ,000 Dundee REIT* 3,012,220 4,922,800 1,425,000 ERAC Canada Finance Ltd. 5.38% 02/26/2016 1,424,031 1,483,018 1,400,000 First Capital Realty Inc. 5.25% 03/30/2011 1,402,128 1,417, ,000 First Capital Realty Inc. 5.5% 09/30/ , ,720 FINANCIALS (21.9%) (cont d) 1,300,000 First Capital Realty Inc. 5.5% 09/30/2017 1,313,000 1,339,000 1,000,000 First Captial Realty Inc. 5.49% 12/01/2011 1,023,890 1,019,490 1,250,000 GE Capital Canada Funding 4.4% 06/01/2014 1,248,150 1,242,512 4,200,000 General Electric Capital Corp % 08/27/2008 4,208,018 4,208,022 2,605,000 GMAC Canada Ltd. 4.55% 09/17/2007 2,502,548 2,588,328 1,190,000 GMAC Canada Ltd. 6.15% 06/20/2007 1,170,365 1,192,273 3,198,000 HBOS Treasury Services PLC % 09/29/2009 3,198,000 3,199,919 USD 3,000,000 HSBC Finance Corp. 5.36% 05/21/2008 3,416,701 3,463, ,200 ING Groep NV 17,767,626 17,630, ,200 InnVest REIT* 3,455,493 4,432, ,950 InStorage REIT 1,110,628 1,095, ,600 InterRent REIT 1,279,300 1,209,520 35,200 IPC US REIT (USD) 378, ,023 USD 575,000 IPC US REIT (USD) 5.75% 09/30/ , ,157 1,190,000 Kaupthing Bank 4.7% 02/15/2010 1,188,810 1,196,200 31,600 KKR Private Equity Investors LP 841, , ,200 KKR Private Equity Investors LP, Subscription Receipts 4,936,124 4,989, ,257 Lloyds TSB Group PLC 6,005,278 6,924, ,400 Macquarie Media Group Ltd. 1,364,389 1,347,299 1,475,000 Manulife Financial Capital Trust 6.7% 06/30/2012 1,574,390 1,626, ,940 Manulife Financial Corp. 15,693,578 19,530,018 9,100,000 Merrill Lynch % 11/09/2009 9,100,000 9,100,000 2,310,000 Met Life Global Funding 4.35% 02/10/2009 2,308,083 2,282,188 61,700 Morneau Sobeco Income Fund 672, , ,000 National Bank of Canada 4.456% 11/02/ , ,676 1,950,000 Newcourt Credit Group Inc. 7.05% 06/28/2007 2,046,147 1,961, ,600 Newport Partners Income Fund 1,675,373 1,141,030 1,295,000 Nordea Bank AB 3.95% 08/05/2015 1,268,050 1,277, ,600 Primaris Retail REIT 2,590,191 4,665,472 3,340,000 RBC Capital Trust 4.87% 12/31/2050 3,320,029 3,336,994 1,475,000 RBC Capital Trust, Callable 5.812% 12/29/2049 1,477,576 1,572,011 USD 416,000 RH Donnelley Finance Corp % 12/15/ , ,317 2,425,000 RioCan REIT 4.7% 06/15/2012 2,418,533 2,393,038 1,110,200 Royal Bank of Canada 50,901,542 63,836, ,000 Royal Bank of Canada 3.7% 06/24/ , , ,000 Royal Bank of Canada, Callable 5.45% 11/04/ ,222 1,008, ,000 Royal Bank of Scotland 4.25% 03/30/ , ,542 1,550,000 Royal Bank of Scotland 5.37% 05/12/2049 1,542,511 1,596,206 84,200 Royal LePage Franchise Services Fund 1,013,413 1,072, ,000 Scotiabank Capital Trust 5.65% 12/31/ , ,688 1,490,000 Scotiabank Capital Trust 6.282% 06/30/2049 1,536,537 1,619,675 1,476 Sumitomo Mitsui Financial Group Inc.* 15,732,419 15,473, ,200 TorontoDominion Bank 43,659,621 50,343, ,000 TorontoDominion Bank 4.779% 12/14/ , ,801 1,000,000 TorontoDominion Bank 4.97% 10/30/ ,849 1,009,040 *Denotes all or part of securities lent. CI Investments Inc., the manager, is a corporation controlled by CI Financial Income Fund. Sun Life Financial Inc. owns a significant interest in CI Financial Income Fund, and is therefore, considered an affiliate to CI Investments Inc. Investment in CI Financial Income Fund is identified above. All common shares unless otherwise noted. Percentages shown in brackets relate investments at market value to total net assets of the Fund. 22 CIG 6116

25 Signature Income & Growth Fund Statement of Investment Portfolio March 31, 2007 FINANCIALS (21.9%) (cont d) 479,000 TorontoDominion Bank, Callable 4.54% 09/05/ , , ,800 UBS AG* 16,190,773 16,584,614 2,000,000 Woodbridge Finance Corp % 09/08/2008 2,000,000 2,000,000 1,150,000 YPG Holdings Inc. 5.25% 02/15/2016 1,145,042 1,129, ,467, ,571,094 ENERGY (16.5%) 1,000,000 Alliance Pipeline LP 7.181% 06/30/2023 1,194,420 1,176, ,689 AltaGas Income Trust 4,251,243 4,541,953 1,450,000 AltaGas Income Trust 5.07% 01/19/2012 1,449,492 1,480, ,900 Anadarko Petroleum Corp. 7,467,241 7,587, ,300 ARC Energy Trust* 14,293,876 14,711, ,900 Bonavista Energy Trust 6,969,471 7,462, ,000 Brookfield Power Corp. 5.84% 11/05/ , ,246 1,300,000 Canadian Natural Resources Ltd. 4.5% 01/23/2013 1,299,766 1,283, ,300 Canadian Oil Sands Trust 4,669,644 7,356, ,000 Crescent Point Energy Trust* 3,215,407 3,012,240 3,600 Diamond Offshore Drilling Inc. 339, , ,000 Enbridge Gas Distribution Inc. 4.48% 12/16/2008* 813, , ,200 Enbridge Inc. 21,226,516 20,833,512 1,000,000 Enbridge Pipelines Inc. 4.46% 12/17/2012* 999,880 1,001, ,080 EnCana Corp. 32,448,062 36,095, ,900 Enerplus Resources Fund 5,010,800 5,546, ,600 Focus Energy Trust* 4,980,707 4,194, ,400 Fort Chicago Energy Partners LP 2,306,482 2,104,200 12,400 High Arctic Energy Services Trust 127,327 35, ,500 Imperial Oil Ltd. 10,901,292 12,775,800 1,022,900 Inter Pipeline Fund 9,456,426 9,492,512 52,199 Kinder Morgan Management LLC 2,785,158 3,088, ,500 Nexen Inc. 14,131,629 18,564, ,000 Noble Corp. 13,378,554 13,625,973 1,460,000 Nova Gas Transmission 8.9% 05/27/2025 1,804,372 2,047,606 USD 6,778,000 OPTI Canada 8.25% 12/15/2014 8,020,507 8,138,546 52,682 Pengrowth Energy Trust (CAD)* 1,289,607 1,024, ,300 Penn West Energy Trust 4,593,576 5,139,661 1,058,800 PetroCanada 48,581,343 47,804,820 USD 2,858,000 Petroquest Energy Inc % 05/15/2012 3,511,186 3,448, ,000 Primary Energy Recycling Corp. 2,148,328 1,905, ,100 Progress Energy Trust 4,578,863 4,235, ,300 Rowan Cos. Inc. 5,827,649 5,559,495 USD 1,253,000 Sabine Pass Lng 7.25% 11/30/2013 1,420,216 1,457, ,719 Suncor Energy Inc. 37,278,075 38,805,014 1,575,000 Suncor Energy Inc. 5.39% 03/26/2037 1,570,590 1,562,006 1,302,500 Talisman Energy Inc. 22,895,362 26,388, ,800 Total Energy Services Trust 1,710,868 1,171, ,052 Total SA* 8,335,224 9,063,627 35,300 Total SA, ADR 2,654,093 2,843,921 1,400,000 TransAlta Corp. 4.2% 12/05/2007 1,397,480 1,398, ,900 TransCanada Corp.* 8,085,251 8,624, ,400 Transocean Inc. 11,978,689 12,394, ,900 Vermilion Energy Trust* 5,199,488 7,517, ,984 Weatherford International Ltd. 7,342,185 8,642, ,600 XTO Energy Inc. 6,899,019 7,441, ,688, ,583,778 MATERIALS (13.3%) 42,600 Aber Diamond Corp.* 1,613,867 1,833, ,500 Agrium Inc.* 9,013,649 12,928,025 20,468 Air Liquide* 4,360,013 5,760, ,500 Air Products and Chemicals Inc. 10,748,767 11,826, ,300 Alcan Inc. 10,209,137 10,549, ,826 Anglo American PLC 6,630,436 7,165,710 71,900 Arch Coal Inc.* 2,923,182 2,547,638 76,400 Armtec Infrastructure Income Fund 1,475,394 1,308,732 1,376,017 Barrick Gold Corp. 44,499,889 45,326, ,910 BHP Billiton PLC 8,130,206 9,701, ,000 Bowater Inc % 11/30/ , ,755 USD 1,842,000 Bowater Inc., Callable % 03/15/2010 2,390,064 2,131, ,220 Cameco Corp. 26,895,617 29,809, ,500 Canexus Income Fund 2,836,979 2,078,175 USD 939,000 Cascades Inc. 7.25% 02/15/2013 1,052,576 1,084,120 2,200 Cemex SA de CV., ADR 68,072 83, ,600 Cia Vale do Rio Doce, ADR 9,547,632 13,862,602 USD 7,967,000 Domtar Inc % 10/15/2011 8,383,671 9,635,200 1,192,700 Eldorado Gold Corp.* 6,612,036 8,050, ,250 Energy Resources of Australia Ltd.* 2,118,639 4,654, ,000 Falconbridge Ltd. 8.5% 12/08/ , ,000 USD 2,650,000 FMG Finance Pty. Ltd. 10% 09/01/2013 3,381,565 3,327,262 USD 3,691,000 FMG Finance Pty. Ltd % 09/01/2016 4,938,479 4,900,651 USD 1,356,000 FreeportMcMoRan Copper & Gold Inc. 8.25% 04/01/2015 1,643,058 1,684,941 USD 4,799,000 Gerdau Ameristeel Corp % 07/15/2011 6,309,222 5,886, ,900 Goldcorp Inc. 7,619,220 6,536,789 USD 4,888,000 Hexion US/NOVA 9.75% 11/15/2014 6,087,998 5,918, ,500 Holcim Ltd. 10,648,563 14,046,843 1,103,000 ICLIsrael Chemicals Ltd. 6,982,964 8,707,226 USD 4,892,000 IPSCO Inc. 8.75% 06/01/2013 6,200,354 6,057,531 95,000 Labrador Iron Ore Royalty Income Fund 2,155,144 2,569, ,833 Lonmin PLC 10,575,202 11,376,381 USD 2,018,000 Lyondell Chemical Co. 8% 09/15/2014 2,287,928 2,440,547 USD 340,000 Macdermaid Inc. 9.5% 04/15/ , ,546 USD 1,998,000 Mercer International Inc. 9.25% 02/15/2013 2,006,840 2,312,553 USD 2,490,000 Metals USA Inc % 01/15/2012 2,872,259 2,817, ,000 Noranda Operating Trust 6.529% 12/20/ ,000 1,001, ,400 Paladin Resources Ltd.* 3,511,947 6,287,328 USD 1,997,000 Rathgibson Inc % 02/15/2014 2,507,283 2,432,442 USD 1,686,000 Rhodia SA 8.875% 06/01/2011 2,001,402 2,026, ,100 Seaspan Corp. 7,245,828 8,849,169 1,835,000 Sherritt International Corp % 11/26/2012 1,855,925 1,928,016 USD 1,240,000 Steel Dynamics Inc. 6.75% 04/01/2015 1,439,028 1,431,639 USD 3,742,000 Stelco Inc % 03/31/2016 4,554,271 4,493,130 75,000 Supremex Income Fund 749, ,250 60,800 Teck Cominco Ltd., Class B 4,984,655 4,893, ,000 Timberwest Forest Corp. 7% 10/01/ , , ,100 Timberwest Forest Corp., Stapled Units 1,983,938 2,668,389 19,000 Umicore 2,945,074 3,900, ,900 Yamana Gold Inc.* 5,338,575 7,158, ,966, ,266,041 *Denotes all or part of securities lent. All common shares unless otherwise noted. Percentages shown in brackets relate investments at market value to total net assets of the Fund. 23

26 Signature Income & Growth Fund Statement of Investment Portfolio March 31, 2007 INDUSTRIALS (12.4%) 48,200 Alliant Techsystems Inc. 4,926,801 4,892,678 1,150,000 Altalink Investments 5.019% 11/21/2012 1,150,000 1,153,416 1,300,000 Altalink LP 5.249% 09/22/2036 1,300,000 1,316,198 USD 2,318,000 American Railcar Industries Inc. 7.5% 03/01/2014 2,746,449 2,749,838 USD 4,510,000 Aramark Term Loan 7.47% 01/27/2014 5,321,346 5,252, ,000 Arctic Glacier Income Fund 2,358,474 2,427,610 1,000 Assa Abloy AB, Class B 25,534 26, ,230 BFI Canada Income Fund 2,877,256 2,896,873 43,100 Burlington Northern Santa Fe Corp. 3,437,529 4,002, ,200 CAE Inc. 1,366,626 1,446, ,900 Canadian Helicopters Income Fund 1,118,185 1,159, ,100 Canadian National Railway Co. 10,136,659 11,563, ,654 Canadian Pacific Railway Ltd. 7,771,889 10,044, ,300 CanWel Building Materials Income Fund 1,425, , ,300 Contrans Income Fund* 2,596,990 1,854, ,000 Cooper Industries Inc., 5,920,446 5,817,628 65,100 Danaos Corp. 1,592,754 1,979,742 45,050 Demag Cranes AG 3,051,805 3,389,710 29,700 Dexit Inc. 162,509 26,284 4,429,700 Dyno Nobel Ltd.* 9,610,313 9,682,314 25,800 Eaton Corp. 2,509,322 2,489, ,800 Emerson Electric Co., Preferred Rights 10,188,939 10,686, ,700 Finmeccanica SpA 8,990,559 11,370, ,000 Finning International Inc. 9,938,524 13,634,560 USD 2,456,000 Flextronics International Ltd. 6.5% 05/15/2013 2,787,630 2,807,214 2,000,000 FortisAlberta Inc. 5.33% 10/31/2014 2,103,200 2,091,380 EUR 918,000 Gaz Capital for Gazprom 7.8% 09/27/2010 1,595,623 1,554,610 USD 1,860,000 General Motors Acceptance Corp. 7.75% 01/19/2010 2,102,940 2,195,927 60,400 Genivar Income Fund Trust 627, ,160 1,765,000 Greater Toronto Airports Authority, Callable 6.98% 10/15/2032 2,134,190 2,181,275 5,016,000 Iron Mountain Inc. 7.5% 03/15/2017 5,014,763 5,016, ,900 Jazz Air Income Fund 1,350,673 1,129,401 USD 1,795,000 K. Hovnanian Enterprises 6% 01/15/2010 1,851,217 1,948,068 USD 1,109,000 K. Hovnanian Enterprises 8.875% 04/01/2012* 1,202,578 1,232, ,600 Koninklijke Vopak NV 9,099,857 13,446, ,750 Kuehne & Nagel International AG* 9,075,390 12,699, ,600 Livingston International Income Fund 2,787,840 2,375, ,300 MacDonald Dettwiler & Associates Ltd. 7,338,965 8,212,122 1,822,600 Macquarie Airports 5,135,319 6,792, ,100 Macquarie Infrastructure Co. Trust* 9,041,337 11,620, ,900 Manitowoc Co. 6,932,801 8,427, ,647 Mullen Group Income Fund 4,409,327 2,785,808 2,460,000 NAV Canada 4.428% 02/24/2011 2,459,372 2,471, ,000 Nexen Inc. 6.3% 06/02/2008 1,040, , ,100 Nissan Motor Co. Ltd.* 6,809,513 6,213,163 USD 4,739,000 NXP Funding LLC 7.875% 10/15/2014 5,638,920 5,649, ,600 OFI Income Fund 1,157, ,614 87,500 OSG Corp. 1,588,026 1,531,118 USD 1,296,000 Panolam Industries International Inc % 10/01/2013 1,489,786 1,608,516 85,500 Randstad Holding NV* 5,355,458 7,655,614 INDUSTRIALS (12.4%) (cont d) 140,900 Resolve Business Outsourcing 1,304,372 1,196,241 82,700 Rheinmetall AG 7,389,744 8,851, ,600 RollsRoyce Group PLC 6,710,624 6,923,407 34,845,120 RollsRoyce Group PLC, Class B 79,182 81,140 48,350 Siemens AG, Registered Shares 5,875,722 5,966,669 2,951,010 Strait Crossing Development Inc. 6.17% 09/15/2031 3,090,239 3,140,317 57,300 Student Transportation of America Inc. 769, , ,685 Tesco PLC 3,174,535 4,185, ,817 TransForce Income Fund 5,147,600 4,141,438 USD 2,682,000 United Rentals North America Inc. 7.75% 11/15/2013 3,111,205 3,181,651 USD 334,000 US Oncology Holdings Inc % 03/15/ , ,475 18,300 USG People NV 880, ,496 50,100 Wajax Income Fund 1,148,411 1,618,731 87,400 Waste Management Inc. 3,597,697 3,472, ,200 WW Grainger Inc. 17,205,818 19,369, ,525, ,117,562 CONSUMER DISCRETIONARY (7.6%) 221,800 Autocanada Income Fund Unit 2,327,809 2,339,990 USD 3,869,000 Baker & Tylor 11.5% 07/01/2013 4,720,874 4,645,623 USD 940,000 Cablevision Systems Corp. 9.87% 04/01/2009 1,160,494 1,150, ,100 Canadian Satellite Radio Holdings Inc.* 1,071, ,150 USD 1,787,000 CanWest MediaWorks Inc. 8% 09/15/2012 2,052,978 2,127,651 USD 1,110,000 CCH II LLC 10.25% 09/15/2010 1,276,221 1,350,431 USD 410,000 CCO Holdings LLC % 12/15/ , ,832 USD 2,819,000 Charter Communications Holdings II LLC 10.25% 09/15/2010 3,386,914 3,433,677 USD 1,345,000 Charter Communications Holdings LLC 10% 04/01/2009 1,060,713 1,570,336 USD 603,000 Charter Communications Holdings LLC 10.25% 01/15/ , ,544 USD 101,000 Charter Communications Holdings LLC 10.75% 10/01/ , ,379 USD 736,000 Charter Communications Holdings LLC 8.625% 04/01/ , ,747 USD 438,000 Charter Communications Holdings LLC 9.625% 11/15/ , , ,800 Cineplex Galaxy Income Fund 2,253,658 2,522, ,600 Comcast Corp., 11,675,520 12,930,958 85,550 Continental AG* 12,270,877 12,765,939 USD 4,606,000 Dollarama FRN % 08/15/2012 5,277,220 5,344,436 USD 2,115,000 Dollarama Group LP 8.875% 08/15/2012 2,492,400 2,545, ,000 ebay Inc. 6,024,824 6,697,820 USD 2,794,000 Foot Locker Inc. 8.5% 01/15/2022 3,186,440 3,294,355 11,300 Gateway Casinos Income Fund 186, ,853 USD 4,811,000 Goodyear Tire 11% 03/01/2011 6,063,821 6,103,039 85,600 Great Canadian Gaming Corp.* 1,140,731 1,015,216 USD 650,000 Great Canadian Gaming Corp. 6.86% 02/12/ , ,456 USD 2,689,000 Great Canadian Gaming Corp. 7.25% 02/15/2015 3,192,965 3,123,983 USD 3,317,000 H&E Equipment Services Inc % 07/15/2016 4,128,276 4,068,987 USD 2,543,000 Harrah s Operating Co. Inc % 06/01/2015 2,436,761 2,532,313 *Denotes all or part of securities lent. All common shares unless otherwise noted. Percentages shown in brackets relate investments at market value to total net assets of the Fund. 24

27 Signature Income & Growth Fund Statement of Investment Portfolio March 31, 2007 CONSUMER DISCRETIONARY (7.6%) (cont d) USD 451,000 Herbst Gaming Inc % 06/01/ , ,861 49,524 Keg Royalties Income Fund 636, ,383 USD 5,474,000 Levi Strauss & Co % 12/15/2012 7,293,890 6,936,194 USD 3,176,000 Levi Strauss & Co. 9.28% 04/01/2012 3,765,480 3,740,181 USD 3,580,000 MGM Mirage Inc % 02/27/2014 3,923,368 3,843,951 USD 3,002,000 MGM Mirage Inc. 8.5% 09/15/2010 3,624,578 3,704,237 USD 7,413,000 Neff Rental LLC 11.25% 06/15/2012 9,146,404 9,500,115 USD 3,346,000 Neiman Marcus Group Inc % 10/15/2015 4,072,315 4,307,375 USD 2,021,000 Park Place Entertainment Corp. 7% 04/15/2013 2,349,074 2,479,175 USD 1,380,000 Paxon Communication Corp % 01/15/2012 1,574,885 1,629,125 50,300 Pizza Pizza Royalty Income Fund 473, ,700 55,900 Pollard Banknote Income Fund 606, ,590 USD 1,798,000 Remington Arms Co. Inc. 10.5% 02/01/2011 1,971,029 2,075, ,100 Rogers Communications Inc., Class B 12,705,249 19,692, ,000 RONA Inc.* 4,237,521 4,513, ,000 RONA Inc. 5.4% 10/20/ , , ,000 Shaw Communications Inc. 7.5% 11/20/ , ,260 1,900 Starbucks Corp. 68,510 68,793 USD 2,635,000 Station Casinos 6% 04/01/2012 2,873,177 2,947, ,100 Thomson Corp. 15,932,966 16,833,901 92,100 Universo Online SA 763, , ,976 Yellow Pages Income Fund 8,250,932 7,912, ,930, ,487,428 CONSUMER STAPLES (5.4%) 563,500 Agricore United 5,067,082 9,297, ,200 Alimentation CoucheTard Inc., Class B 6,207,276 6,136,388 61,696 Altria Group Inc. 5,987,124 6,254,792 98,500 AnheuserBusch Cos. Inc. 5,781,933 5,738, ,400 Bunge Ltd.* 9,051,085 10,954,566 36,000 Colabor Income Fund 375, ,640 55,700 Cosan SA Industria e Comercio 998,009 1,164, ,181 CVS Corp.* 11,182,339 12,659, ,100 Fomento Economico Mexicano SA de CV, ADR 12,985,124 16,071,512 47,719 Groupe Danone 8,807,985 9,000,252 64,400 InBev NV 3,416,911 5,368,074 USD 915,000 Jean Coutu Group Inc. 8.5% 08/01/2014 1,095,733 1,147,527 83,700 Liquor Stores Income Fund 1,492,999 1,824, ,000 Metro Inc. 5.97% 10/15/ , ,815 2,263,000 Molson Coors Capital Finance Co., Senior Notes 5% 09/22/2015 2,235,628 2,243,651 15,250 Nestle SA, Registered Shares* 5,625,000 6,856,024 USD 6,597,000 Pathmark Stores Inc. 8.75% 02/01/2012 7,459,286 7,873,610 92,905 Procter & Gamble Co. 6,907,907 6,774,748 74,679 Saputo Inc. 2,791,860 3,448,676 1,755,000 Saskatchewan Wheat Pool Inc. 8% 04/08/2013 1,755,000 1,816, ,700 Shoppers Drug Mart Corp. 5,665,221 6,583,005 USD 3,708,000 The Mosaic Co % 12/01/2014 4,412,499 4,452, ,760, ,490,619 GOVERNMENT BONDS (5.2%) 4,500, Ontario School Board Trust 5.9% 06/02/2033 5,013,180 5,288,760 2,395,000 Canada Housing Trust No % 09/15/2011 2,452,312 2,440,577 11,535,000 Canadian Government Bond 3% 06/01/ ,415,146 11,511,584 6,099,000 Canadian Government Bond 3.75% 09/01/2011* 6,024,295 6,034,960 4,602,000 Canadian Government Bond 4% 06/01/2016* 4,573,593 4,561,042 1,337,000 Canadian Government Bond 4% 09/01/2010 1,329,707 1,337,201 6,175,000 Canadian Government Bond 4.5% 06/01/2015* 6,331,122 6,348,579 6,680,000 Canadian Government Bond 5% 06/01/2014* 7,098,155 7,059,424 4,755,000 Canadian Government Bond 5.75% 06/01/2029 5,768,366 5,788,737 8,700,000 Canadian Government Bond 5.75% 06/01/2033* 10,760,009 10,831,500 22,121,000 Canadian Government Bond 6% 06/01/2008* 22,703,569 22,596, ,000 Canadian Government Bond 8% 06/01/ , ,265 2,850,000 City of Montreal 6% 06/01/2043 3,373,602 3,425,500 2,500,000 Eurofima 5.15% 12/13/2019 2,643,300 2,640, ,000 Municipal Finance Authority of British Columbia 8.75% 05/12/2013 1,187,537 1,188,591 3,000,000 Province of Ontario 4.4% 03/08/2016 2,924,700 3,013,260 2,470,000 Province of Ontario 4.6% 12/02/2012 2,474,773 2,478,620 3,400,000 Province of Ontario 4.7% 06/02/2037 3,427,883 3,447,158 4,700,000 Province of Ontario 5.6% 06/02/2035 5,305,360 5,427,701 9,100,000 Province of Quebec 4.5% 12/01/2016 8,990,648 9,117,654 2,800,000 Province of Quebec 5% 12/01/2038 2,959,124 2,930,732 3,000,000 Province of Quebec 5.75% 12/01/2036 3,403,620 3,488, ,829, ,681,940 INFORMATION TECHNOLOGY (3.5%) 361,500 Adobe Systems Inc. 17,113,254 17,404,288 USD 1,792,000 Advance Micro Devices 7.75% 11/01/2012 2,129,394 2,092,225 USD 249,549 Amkor Technology Inc. 10.5% 05/01/ , , ,300 Ciena Corp. 6,793,051 7,334, ,300 Corning Inc. 11,462,235 13,108,830 USD 1,683,000 Hughes Network 9.5% 04/15/2014 2,025,906 2,074,263 USD 4,296,000 Iron Mountain Inc % 04/01/2013 5,079,833 5,103, ,400 QUALCOMM Inc. 12,076,045 13,367,266 99,400 Research in Motion Ltd. (USD) 13,572,544 15,663,872 USD 772,000 STATS ChipPAC Ltd. 7.5% 07/19/ , , ,000 Teranet Income Fund 4,589,126 4,291,230 76,097,291 81,656,627 *Denotes all or part of securities lent. All common shares unless otherwise noted. Percentages shown in brackets relate investments at market value to total net assets of the Fund. 25

28 Signature Income & Growth Fund Statement of Investment Portfolio March 31, 2007 TELECOMMUNICATION SERVICES (2.5%) 1,500,000 Bell Aliant Regional 5.41% 09/26/2016 1,509,135 1,511,220 USD 1,391,000 Cincinnati Bell Inc % 01/15/2014 1,670,003 1,642,110 USD 1,600,000 Dobson Communication Corp. 9.61% 10/15/2012 1,841,386 1,847,276 1,950,000 France Telecom SA 4.95% 06/23/2011 1,958,640 1,975,428 USD 2,394,000 Intelsat Bermuda Ltd % 01/15/2015 2,848,425 2,763,987 USD 10,350,000 Intelsat Bermuda Ltd., Callable 11.25% 06/15/ ,145,331 13,544,051 USD 1,208,000 Metropcs Wireless Inc. 9.25% 11/01/2014 1,380,708 1,474,889 4,202,000 Rogers Wireless Inc % 12/15/2011 4,258,074 4,674,347 USD 617,000 Rogers Wireless Inc. 8% 12/15/ , ,316 USD 2,180,000 Rural Cellular Corp % 11/01/2012 2,550,385 2,617,591 USD 2,391,000 Rural Cellular Corp. 8.25% 03/15/2012 2,855,970 2,884,747 USD 550,000 Rural Cellular Corp. 9.75% 01/15/ , ,051 2,669,941 Singapore Telecommunications Ltd. 5,049,327 6,664,591 1,891,450 Singapore Telecommunications Ltd., Restricted Shares 3,624,826 4,721, ,000 Telesat Canada Inc. 8.2% 11/07/2008 1,022, , ,200 TELUS Corp.* 7,773,110 9,789,180 52,837,192 58,509,114 UTILITIES (1.7%) 1,086,800 Canadian Hydro Developers Inc. 6,044,767 6,846,840 2,394,000 Canadian Hydro Developers Inc % 09/01/2015 2,394,000 2,396,131 44,600 Consumers' Waterheater Income Fund 592, ,878 47,600 Energy Savings Income Fund 772, ,040 2,300,000 Hydro One Inc. 4.64% 03/03/2016 2,281,623 2,314, ,500 Kinder Morgan Energy Partners LP 8,007,162 8,727, ,400 Northland Power Income Fund 1,794,894 1,545, ,400 Royal Utilities Income Fund 1,501,644 1,708,800 64,100 Sempra Energy 4,541,465 4,515,137 71,700 Suez SA 4,068,166 4,365,492 1,245,000 Terasen Gas Inc. 5.9% 02/26/2035 1,243,942 1,338,636 1,915,000 Terasen Gas Inc. 6.5% 05/01/2034 1,904,161 2,220, ,000 TransCanada Pipelines Ltd. 5.65% 01/15/ ,739 1,019,858 72,100 UE Waterheater Income Fund 961,734 1,117,550 37,064,080 39,396,841 HEALTH CARE (1.5%) USD 3,300,000 Angiotech Pharmaceuticals Inc. 7.75% 04/01/2014* 3,584,169 3,470,231 USD 1,348,000 Chemed Corp. 8.75% 02/24/2011 1,589,595 1,616,638 91,900 CML Healthcare Income Fund 1,141,848 1,318,765 USD 4,919,000 HealthSouth Corp % 06/15/2016 5,321,992 6,176,152 USD 3,883,485 HealthSouth Corp. 8.15% 03/10/2013 4,551,551 4,511,691 USD 995,000 HealthSouth Corp., Callable 10.75% 10/01/2008 1,080,966 1,154,519 USD 1,498,000 Medcath Holdings 9.875% 07/15/2012 1,825,572 1,872,197 USD 3,671,000 Owens Brockway Glass Container Inc. 8.75% 11/15/2012 4,424,021 4,460,858 1,212,000 Patheon Inc.* 8,561,546 5,696,400 USD 2,943,000 Skilled Healthcare 11.5% 01/15/2014 3,686,790 3,780, ,900 Tenet Healthcare Corp. 2,120,702 1,662,176 37,888,752 35,719,717 PRIVATE PLACEMENTS (0.8%) USD 3,083,000 Clarke American Corp., Senior Notes, Series WI, Callable 11.75% 12/15/2013 3,566,303 4,111,189 USD 1,575,000 Dow Jones CDX HY 6.75% 06/29/2012 1,817,006 1,800,229 USD 1,427,000 Dow Jones CDX HY 7 T1 Series 7T % 12/29/2011 1,752,034 1,707,181 EUR 1,115,000 FS Funding AS % 05/15/2016 1,562,536 1,753,929 USD 840,000 Kimco North Trust III 5.18% 08/16/ , ,724 USD 5,831,804 Masonite International Corp. 11% 04/06/2015 7,114,451 6,261,780 1,890,000 Mobifon Holdings BV 12.5% 07/31/2010 2,907,909 2,362,118 19,557,946 18,853,150 ASSET BACKED (0.1%) 600,000 CCIC 2006WEM 5.248% 01/15/ , ,990 1,950,000 CCIC 2006WEM MBS 4.934% 09/15/2016 1,949,932 1,934,010 2,549,915 2,532,000 WARRANTS (0.1%) 44,700 Yellow Pages Income Fund, Warrants (12/14/2007) 3,352 Currency Codes: EUR Euro Currency USD U.S. Dollar Total Bonds & Equities (92.5%) 1,982,163,840 2,155,869,263 Short Term Notes (6.5%) 152,344, ,344,116 DERIVATIVE INSTRUMENTS Foreign Currency Forward Contracts (0.2%) (see Schedule A) 4,358,857 Long Option Contracts (0.1%) (see Schedule B) 436, ,216 Total Investments (99.3%) 2,134,944,365 2,312,952,452 Other Assets (net) (0.7%) 15,989,043 Total Net Assets (100.0%) 2,328,941,495 *Denotes all or part of securities lent. All common shares unless otherwise noted. Percentages shown in brackets relate investments at market value to total net assets of the Fund. 26

29 Signature Income & Growth Fund Statement of Investment Portfolio March 31, 2007 Schedule A Foreign Currency Forward Contracts (0.2%) Credit Market Contracts Pay Receive Price Due Date Rating Value $ 2 (15,600,000) Australian $ 14,349,600 Canadian $ May07 A1+ (166,558) 2 (16,000,000) European Euro 24,697,398 Canadian $ May07 A1 6,851 1 (12,300,000) Swiss Franc 11,871,556 Canadian $ May07 A1+ 144,752 5 (136,813,000) US $ 160,157,528 Canadian $ Jun07 A1+ 2,579,507 2 (16,400,000) US $ 19,096,222 Canadian $ Apr07 A1 171,267 4 (38,900,000) US $ 45,473,580 Canadian $ May07 A1 646,594 7 (69,037,000) US $ 80,360,990 Canadian $ May07 A1 790,739 1 (7,207,374) US $ 8,503,980 Canadian $ Apr07 A1+ 185,705 Total Foreign Currency Forward Contracts Value 4,358,857 Schedule B Long Option Contracts (0.1%) No. of underlying Underlying Expiry Strike Premium Paid Market Contracts Interest Interest Date Price (Received) $ Value $ ,000 Kraft Foods Inc. Put 24Sep , , ,200 Research In Motion Ltd. Call 22Jan , , ,600 Research In Motion Ltd. Call 19Jun ,523 33,147 Total Long Option Contracts Value 436, ,216 All common shares unless otherwise noted. Percentages shown in brackets relate investments at market value to total net assets of the Fund. 27

30 Signature Income & Growth Fund Financial Statements Statements of Net Assets (in $000 s except for per unit amounts and units outstanding) Assets Investments at market value* Cash Short term investments Margin for short sales Income taxes recoverable Daily variation margin on derivative investments Unrealized gain on derivative investments Cash collateral received for securities on loan (Note 5) Premium paid for options contract Receivable for unit subscriptions Receivable for securities sold Receivable for dividends and accrued interest Liabilities Bank overdraft Management fees payable Accrued expenses Unrealized loss on derivative investments Premium received from options contract Payable for securities purchased Payable for unit redemptions Payable for cash collateral under securities lending (Note 5) Investments sold short at market value* Distributions payable Net assets and unitholders' equity *Investments at cost Investments sold short at cost Net assets per class Net asset value per unit March 31, 2007 March 31, ,155,869 1,387,741 5, , ,185 4, ,046 21,048 6,472 11,412 13,623 9,327 2,361,783 1,570, ,795 13,864 5,925 2,838 13,115 8,650 32,842 26,543 2,328,941 1,544,170 1,982,164 1,238,077 1,670,914 1,240,788 38,900 26, , , Statements of Operations (in $000 s except for per unit amounts) Income Dividends Interest Securities lending (Note 5) Derivative income (loss) Income distribution from investments Less: Foreign withholding taxes Expenses Management fees (Note 4) Administrative fees (Note 4) Interest expense Legal fees Audit fees Goods and services tax Net income (loss) for the period Realized and unrealized gain (loss) on investments (see Schedule of Commissions) Realized gain (loss) on investments Foreign exchange gain (loss) Capital gain distribution from investments Change in unrealized appreciation (depreciation) of investments Net gain (loss) on investments per class per unit (Note 2) 16,633 10,993 57,542 36, ,032 (1,217) (419) 74,181 47,461 28,359 22,168 2,877 2, ,940 1,709 33,248 26,143 40,933 21, ,499 76,670 (107) (537) 28, , , , , , , ,944 3,333 4,080 51,731 26, Number of units outstanding (see Schedule of Fund Unit Transactions) 288,981, ,290,087 6,534,504 4,497,218 53,735,732 24,466,135 28

31 Signature Income & Growth Fund Financial Statements Statements of Changes in Net Assets Statements of Changes in Net Assets (cont d) 1,240, , , ,394 68,274 54,494 (351,285) (270,264) 393, ,624 (72,186) (50,385) (20,764) (11,589) (13,745) (92,950) (75,719) 129, ,944 1,670,914 1,240, , , ,026 44,114 11,790 (205,579) (114,356) 334, ,460 (32,781) (7,243) (11,333) (2,126) (2,444) (44,114) (11,813) 51,731 26, , ,151 26,231 10,703 23,512 20,682 1, (13,037) (8,300) 11,866 13,298 (1,910) (1,228) (620) (302) (320) (2,530) (1,850) 3,333 4,080 38,900 26,231 Total Fund 1,544, ,642 1,196,255 1,231, ,779 67,200 (569,901) (392,920) 740, ,382 (106,877) (58,856) (32,717) (14,017) (16,509) (139,594) (89,382) 184, ,528 2,328,941 1,544,170 29

32 Signature Income & Growth Fund Financial Statements Supplementary Schedules Schedule of Fund Unit Transactions Schedule of Commissions Balance, beginning of period Units issued for cash Units issued for reinvested distributions (Note 6) Units redeemed Units issued on fund merger (Note 1) Balance, end of period 219,290,087 99,879, ,787, ,921,546 12,089,148 10,251,685 (62,185,672) (50,762,246) 288,981, ,290,087 Brokerage commissions 2,228 1,841 Soft Dollar commissions Balance, beginning of period Units issued for cash Units issued for reinvested distributions (Note 6) Units redeemed Units issued on fund merger (Note 1) Balance, end of period 4,497,218 2,046,126 4,029,639 3,794, , ,436 (2,230,821) (1,510,572) 6,534,504 4,497,218 Schedule of Loss Carry Forwards Net capital loss carried forward March 31, 2007 Balance, beginning of period Units issued for cash Units issued for reinvested distributions (Note 6) Units redeemed Units issued on fund merger (Note 1) Balance, end of period 24,466,135 43,829,473 34,046,396 3,897,312 1,087,028 (18,457,188) (10,667,289) 53,735,732 24,466,135 Noncapital losses expiring: Total Schedule of Securities Lending (Note 5) Loaned Collateral (noncash) March 31, 2007 March 31, , , , ,235 Schedule of Fees (%) Annual management fee rate March 31, Paid directly by investor Annual fixed administration fee 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. 30

33 Signature Corporate Bond Fund Statement of Investment Portfolio March 31, 2007 CORPORATE BONDS (80.7%) USD 907,000 Ace Cash Express Inc % 10/01/2014 1,030,473 1,078,590 USD 426,000 Advance Micro Devices 7.75% 11/01/ , ,371 4,000,000 Aeroports De Montreal 6.55% 10/11/2033 3,993,200 4,761,400 1,474,750 Alliance Pipeline LP 6.765% 12/31/2025 1,710,061 1,673,972 2,632,828 Alliance Pipeline LP 7.181% 06/30/2023 2,878,750 3,098,201 3,000,000 AltaGas Income Trust 5.07% 01/19/2012 2,998,950 3,063,774 4,000,000 Altalink Investments 5.019% 11/21/2012 4,000,000 4,011,880 USD 1,319,000 American Railcar Industries Inc. 7.5% 03/01/2014 1,562,937 1,564,727 USD 296,432 Amkor Technology Inc. 10.5% 05/01/ , ,101 USD 821,000 Angiotech Pharmaceuticals Inc. 7.75% 04/01/2014* 891, ,351 USD 2,575,000 Aramark Term Loan 7.47% 01/27/2014 3,038,241 2,998,974 USD 1,529,000 Baker & Tylor 11.5% 07/01/2013 1,878,543 1,835,916 3,000,000 Bank of Ireland 3.8% 09/22/2015 2,995,800 2,946,060 USD 2,200,000 Bank of Montreal Chicago 5.35% 03/12/2009 2,595,656 2,540,005 3,009,000 BC Gas Inc., Callable 8% 04/19/2040 3,176,895 3,278,306 3,766,000 BCE Inc. 7.35% 10/30/2009 4,061,886 4,008,643 5,000,000 Bell Aliant Regional 5.41% 09/26/2016* 5,019,035 5,037,400 2,318,000 Bowater Inc % 11/30/2014 2,573,522 2,518,391 2,000,000 Brascan Power Corp. 4.65% 12/16/2009 1,989,820 2,009,900 3,800,000 Brookfield Asset Management Inc. 7.25% 06/01/2007 3,925,286 3,816,910 USD 735,000 Cablevision Systems Corp. 9.87% 04/01/ , ,508 4,000,000 Calloway REIT, Callable 4.51% 09/22/2010 3,964,160 3,968,000 USD 660,000 Calpine Generating Co. 11.5% 04/01/ , ,444 1,000,000 Canada Capital Auto Receivables Asset Trust 3.383% 06/17/ , , ,000 Canada Housing Trust No % 09/15/ , ,787 3,000,000 Canada Safeway Ltd. 4.45% 11/14/2008 2,996,490 2,985,180 2,500,000 Canadian Hydro Developers Inc % 09/01/2015 2,500,000 2,502,225 5,000,000 Canadian Imperial Bank of Commerce 4.35% 11/01/2011 5,023,800 5,002,850 4,000,000 Canadian Natural Resources Ltd. 4.5% 01/23/2013* 3,985,290 3,948,240 2,000,000 Canadian Natural Resources Ltd. 4.95% 06/01/2015* 1,998,900 1,985, ,000 Canadian Oil Sands Ltd. 5.75% 04/09/ , ,095 3,000,000 Canadian Western Bank 6.199% 12/31/2056 3,000,000 3,034,500 3,000,000 Canadian Western Bank 5.07% 03/22/2012 3,000,000 3,000,000 5,000,000 Canadian Western Bank 5.96% 10/24/2013 5,000,000 5,023,006 USD 1,559,000 CanWest MediaWorks Inc. 8% 09/15/2012 1,917,944 1,856,188 USD 238,000 Cascades Inc. 7.25% 02/15/ , ,782 USD 273,000 CCH II LLC 10.25% 09/15/ , ,133 4,000,000 CCIC 2006WEM 5.248% 01/15/2022 3,999,888 3,986,600 USD 185,000 CCO Holdings LLC % 12/15/ , ,863 USD 1,512,000 Charter Communications Holdings II LLC 10.25% 09/15/2010 1,865,580 1,841,688 USD 320,000 Charter Communications Holdings LLC 10% 04/01/ , ,612 USD 242,500 Charter Communications Holdings LLC 10.25% 01/15/ , ,728 USD 147,500 Charter Communications Holdings LLC 10.75% 10/01/ , ,340 USD 220,000 Charter Communications Holdings LLC 8.625% 04/01/ , ,001 *Denotes all or part of securities lent. All common shares unless otherwise noted. Percentages shown in brackets relate investments at market value to total net assets of the Fund. CORPORATE BONDS (80.7%) (cont d) USD 115,000 Charter Communications Holdings LLC 9.625% 11/15/ , ,271 USD 930,000 Charter Communications Inc % 11/16/ ,332 1,455,762 USD 347,000 Chemed Corp. 8.75% 02/24/ , ,152 USD 1,916,000 Cincinnati Bell Inc % 01/15/2014 2,417,930 2,261,886 4,050,000 CIT Group Holdings Inc. 4.72% 02/10/2011 4,060,770 4,064,985 2,000,000 Citigroup Finance Canada Inc. 4.37% 02/03/2011 1,999,700 2,003, ,000 Citigroup Finance Canada Inc. 4.39% 08/04/ , ,608 3,135,000 Citigroup Finance Canada Inc % 06/02/2008 3,135,219 3,135,000 2,089,000 Citigroup Finance Canada Inc % 10/24/2008 2,089,620 2,089,000 USD 786,000 Clarke American Corp., Senior Notes, Series WI, Callable 11.75% 12/15/ ,248 1,048,133 1,480,000 Cominar REIT 6.3% 06/30/2014 1,480,000 1,975,652 3,000,000 Commerzbank AG VAR 4.5% 12/15/2016 2,992,920 2,979,030 4,000,000 Cooperators Financial Services Ltd. 5.07% 07/20/2012 4,010,990 4,016,400 USD 1,466,000 CoucheTard Finance Corp., Callable 7.5% 12/15/2013 1,769,480 1,739,113 4,000,000 Countrywide Financial Corp. 4.69% 06/01/2009 4,008,800 4,011, ,000 Credit Agricole SA % 10/06/ , ,000 USD 740,000 CSC Holdings Inc % 04/01/2011 1,019, ,724 USD 590,000 CSN Islands VIII Corp. 9.75% 12/16/ , ,549 3,700,000 CU Inc % 01/23/2019 3,554,960 3,942,350 3,000,000 Deutsche Bank AG 4.9% 08/22/2016 2,998,920 3,055,830 USD 961,000 Dobson Communication Corp. 9.61% 10/15/2012 1,118,898 1,109,520 USD 819,000 Dollarama FRN % 08/15/ , ,302 USD 512,000 Dollarama Group LP 8.875% 08/15/ , ,251 USD 2,464,000 Domtar Inc % 10/15/2011 2,589,117 2,979,934 USD 900,000 Dow Jones CDX HY 6.75% 06/29/2012 1,038,289 1,028,702 USD 684,000 Dow Jones CDX HY 7 T1 Series 7T % 12/29/ , ,298 USD 722,700 Dow Jones CDX HY T4 Series % 12/29/ , ,650 4,000,000 Enbridge Pipelines Inc. 4.46% 12/17/2012* 3,999,520 4,005,040 3,000,000 EnCana Corp. 3.6% 09/15/2008 2,999,010 2,970,930 4,500,000 ERAC Canada Finance Ltd. 5.38% 02/26/2016 4,496,940 4,683,216 3,000,000 Falconbridge Ltd. 8.5% 12/08/2008 3,332,247 3,191,250 3,000,000 First Capital Realty Inc. 5.25% 03/30/2011 3,003,604 3,037,290 2,000,000 First Capital Realty Inc. 5.34% 04/01/2013 2,002,360 2,016, ,000 First Capital Realty Inc. 5.5% 09/30/ , , ,000 First Capital Realty Inc. 5.5% 09/30/ , ,000 2,000,000 First Captial Realty Inc. 5.49% 12/01/2011 2,005,100 2,038,980 USD 582,000 Flextronics International Ltd. 6.5% 05/15/ , ,227 USD 1,265,000 FMG Finance Pty. Ltd. 10% 09/01/2013 1,614,148 1,588,297 USD 1,730,000 FMG Finance Pty. Ltd % 09/01/2016 2,314,770 2,296,973 USD 727,000 Foot Locker Inc. 8.5% 01/15/ , ,193 1,300,000 Fortis Inc. 7.4% 10/25/2010 1,454,245 1,424,514 4,000,000 FortisAlberta Inc. 5.33% 10/31/2014 4,206,400 4,182,760 5,000,000 France Telecom SA 4.95% 06/23/2011 5,031,312 5,065,200 USD 323,000 FreeportMcMoRan Copper & Gold Inc. 8.25% 04/01/ , ,354 EUR 1,262,000 FS Funding AS % 05/15/2016 1,777,539 1,985, CIG 9010

34 Signature Corporate Bond Fund Statement of Investment Portfolio March 31, 2007 CORPORATE BONDS (80.7%) (cont d) EUR 1,820,000 Gaz Capital for Gazprom 7.8% 09/27/2010 2,793,780 3,082,125 3,000,000 GE Capital Canada Funding 4.4% 06/01/2014 2,995,560 2,982, ,000 General Electric Capital Corp % 08/27/ , ,719 USD 2,310,000 General Motors Acceptance Corp. 7.75% 01/19/2010 2,612,829 2,727,200 3,000,000 George Weston Ltd. 5.9% 02/05/2009 3,121,530 3,079,680 USD 2,801,000 Gerdau Ameristeel Corp % 07/15/2011 3,888,943 3,436,006 4,000,000 GMAC Canada Ltd. 4.55% 09/17/2007 3,986,800 3,974, ,000 GMAC Canada Ltd. 5.8% 04/18/ , , ,000 GMAC Canada Ltd. 6% 04/10/ , ,018 3,000,000 GMAC Canada Ltd. 6.25% 08/22/2007 2,967,000 3,005,280 USD 1,172,000 Goodyear Tire 11% 03/01/2011 1,477,254 1,486,752 USD 400,000 Great Canadian Gaming Corp. 6.86% 02/12/ , ,819 USD 1,377,000 Great Canadian Gaming Corp. 7.25% 02/15/2015 1,633,859 1,599,749 4,600,000 Greater Toronto Airports Authority, Callable 6.98% 10/15/2032 5,595,900 5,684,910 USD 762,000 H&E Equipment Services Inc % 07/15/ , ,751 2,700,000 Hamilton Utilities Corp. 6.25% 07/30/2012 2,779,650 2,924,667 USD 631,000 Harrahs Operating Co. Inc % 06/01/ , , ,000 HBOS Treasury Services PLC % 09/29/ , ,286 USD 1,849,000 HealthSouth Corp % 06/15/2016 2,000,480 2,321,550 USD 1,227,830 HealthSouth Corp. 8.15% 03/10/2013 1,439,050 1,426,448 USD 500,000 HealthSouth Corp., Callable 10.75% 10/01/ , ,160 USD 128,000 Herbst Gaming Inc % 06/01/ , ,814 USD 350,000 Hertz Corp % 01/01/ , ,822 USD 2,046,000 Hexion US/NOVA 9.75% 11/15/2014 2,548,300 2,477,362 USD 977,000 Horizon PCS Inc., Callable % 07/15/2012 1,302,383 1,249,252 5,000,000 HSBC Bank Canada 4.94% 03/16/2021 5,006,750 5,087,300 USD 720,000 Hughes Network 9.5% 04/15/ , ,385 4,000,000 Hydro One Inc. 4.64% 03/03/2016 3,968,040 4,025,480 USD 566,000 Intelsat Bermuda Ltd % 01/15/ , ,474 USD 2,475,000 Intelsat Bermuda Ltd., Callable 11.25% 06/15/2016 3,143,280 3,238,795 USD 374,000 IPC US REIT (USD) 5.75% 09/30/ , ,065 USD 3,190,000 IPSCO Inc. 8.75% 06/01/2013 4,064,011 3,950,025 2,341,000 Iron Mountain Inc. 7.5% 03/15/2017 2,340,685 2,341,000 USD 1,448,000 Iron Mountain Inc % 04/01/2013 1,726,595 1,720,267 USD 834,502 Jean Coutu Group (PJC) Inc., Term Loan % 08/30/2011 1,140, ,473 USD 2,373,300 Jean Coutu Group Inc. 8.5% 08/01/2014 2,855,668 2,976,421 USD 463,000 K. Hovnanian Enterprises 6% 01/15/ , ,482 USD 285,000 K. Hovnanian Enterprises 8.875% 04/01/ , ,707 2,000,000 Kaupthing Bank 4.7% 02/15/2010 1,998,000 2,010,420 2,600,000 Kimco North Trust II 4.45% 04/21/2010 2,593,500 2,596,230 2,500,000 Kimco North Trust III 5.18% 08/16/2013 2,493,175 2,549,775 USD 2,324,000 Levi Strauss & Co % 12/15/2012 3,101,886 2,944,778 USD 1,404,000 Levi Strauss & Co. 9.28% 04/01/2012 1,670,233 1,653,405 USD 552,000 Lyondell Chemical Co. 8% 09/15/ , ,583 USD 157,000 Macdermaid Inc. 9.5% 04/15/ , ,264 3,500,000 Manulife Financial Capital Trust 6.7% 06/30/2012 3,742,550 3,859,135 CORPORATE BONDS (80.7%) (cont d) USD 4,149,987 Masonite International Corp. 11% 04/06/2015 5,041,046 4,455,963 USD 374,000 Medcath Holdings 9.875% 07/15/ , ,424 USD 1,527,000 Mercer International Inc. 9.25% 02/15/2013 1,542,768 1,767,402 1,800,000 Merrill Lynch % 11/09/2009 1,800,000 1,800,000 2,300,000 Merrill Lynch Financial Assets Inc. 5.47% 06/12/2035 2,290,082 2,395,450 3,000,000 Met Life Global Funding 4.35% 02/10/2009 2,997,510 2,963,880 5,000,000 Met Life Global Funding 4.5% 02/10/2011 5,012,850 5,020,350 USD 1,254,000 Metals USA Inc % 01/15/2012 1,446,753 1,418,847 4,000,000 Metro Inc. 5.97% 10/15/2035 4,044,960 4,023,960 USD 294,000 Metropcs Wireless Inc. 9.25% 11/01/ , ,955 USD 840,000 MGM Mirage Inc % 02/27/ , ,933 USD 1,132,000 MGM Mirage Inc. 8.5% 09/15/2010 1,386,841 1,396,801 6,000,000 MI Developments Inc. 6.05% 12/22/2016 5,974,200 5,980,440 USD 2,075,000 Mobifon Holdings BV 12.5% 07/31/2010 3,105,677 2,593,331 5,000,000 Molson Coors Capital Finance Co., Senior Notes 5% 09/22/2015 4,987,550 4,957,250 USD 2,345,000 Neff Rental LLC 11.25% 06/15/2012 2,907,000 3,005,230 USD 999,000 Neiman Marcus Group Inc % 10/15/2015 1,207,496 1,286,033 3,000,000 Newcourt Credit Group Inc. 7.05% 06/28/2007 3,149,460 3,017,790 5,000,000 Noranda Operating Trust 6.529% 12/20/2010 5,000,000 5,225,000 USD 753,000 Norcross Safety Products LLC 9.875% 08/15/2011 1,043, ,537 5,000,000 Nordea Bank AB 3.95% 08/05/2015 4,883,500 4,933,000 2,000,000 Nova Gas Transmission 8.9% 05/27/2025 2,515,000 2,804,940 USD 1,903,000 NXP Funding LLC 7.875% 10/15/2014 2,280,690 2,268,510 USD 2,137,000 OPTI Canada 8.25% 12/15/2014 2,544,151 2,565,959 USD 1,427,000 Owens Brockway Glass Container Inc. 8.75% 11/15/2012 1,734,827 1,734,035 USD 349,000 Panolam Industries International Inc % 10/01/ , ,157 USD 486,000 Park Place Entertainment Corp. 7% 04/15/ , ,180 USD 2,583,000 Pathmark Stores Inc. 8.75% 02/01/2012 2,928,593 3,082,846 USD 610,000 Paxon Communication Corp % 01/15/ , , ,000 Pembina Pipeline Income Fund 7.35% 12/31/ , ,500 USD 1,054,000 Petroquest Energy Inc % 05/15/2012 1,294,780 1,271, ,000 Provident Energy Trust 8.75% 12/31/ , ,804 USD 550,000 Province Healthcare Co. 7.5% 06/01/ , ,526 USD 848,000 Rathgibson Inc % 02/15/2014 1,067,060 1,032,905 3,000,000 RBC Capital Trust 4.87% 12/31/2050 3,000,000 2,997,300 4,500,000 RBC Capital Trust, Callable 5.812% 12/29/2049 4,513,400 4,795,965 USD 484,000 Remington Arms Co. Inc. 10.5% 02/01/ , ,801 USD 106,000 RH Donnelley Finance Corp % 12/15/ , ,090 USD 406,000 Rhodia SA 8.875% 06/01/ , ,031 1,813,000 RioCan REIT 3.85% 01/04/2008 1,789,703 1,803,409 2,500,000 RioCan REIT 4.7% 06/15/2012* 2,494,250 2,467,050 2,770,000 Rogers Wireless Inc % 12/15/2011 2,782,399 3,081,376 USD 740,000 Rogers Wireless Inc. 8% 12/15/ , ,491 2,000,000 RONA Inc. 5.4% 10/20/2016 1,995,840 1,989,380 3,000,000 Royal Bank of Scotland 4.25% 03/30/2015 3,003,150 2,989,080 5,000,000 Royal Bank of Scotland 5.37% 05/12/2049 4,982,200 5,149,050 USD 560,000 Rural Cellular Corp % 11/01/ , ,409 *Denotes all or part of securities lent. All common shares unless otherwise noted. Percentages shown in brackets relate investments at market value to total net assets of the Fund. 32

35 Signature Corporate Bond Fund Statement of Investment Portfolio March 31, 2007 CORPORATE BONDS (80.7%) (cont d) USD 820,000 Rural Cellular Corp. 8.25% 03/15/ , ,332 USD 255,000 Rural Cellular Corp. 9.75% 01/15/ , ,242 USD 303,000 Sabine Pass Lng 7.25% 11/30/ , , ,000 Saskatchewan Wheat Pool Inc. 8% 04/08/ , ,100 2,500,000 Scotiabank Capital Trust 6.282% 06/30/2049 2,614,042 2,717,575 1,280,000 Shaw Communications Inc. 7.5% 11/20/2013 1,283,600 1,428,544 1,207,000 Sherritt International Corp % 11/26/2012 1,212,618 1,268,183 USD 795,000 Skilled Healthcare 11.5% 01/15/2014 1,000,462 1,021,125 USD 645,000 Station Casinos 6% 04/01/ , ,412 USD 293,000 Steel Dynamics Inc. 6.75% 04/01/ , , ,000 Stelco Inc. 9.5% 02/01/ ,155 24,420 USD 1,601,000 Stelco Inc % 03/31/2016 1,951,199 1,922,368 4,048,172 Strait Crossing Development Inc. 6.17% 09/15/2031 3,810,287 4,307,862 4,000,000 Suncor Energy Inc. 5.39% 03/26/2037 3,988,800 3,967,000 USD 180,000 Teck Cominco Ltd. 7% 09/15/ , ,230 3,229,000 Telesat Canada Inc. 8.2% 11/07/2008 3,428,103 3,340,142 3,700,000 Terasen Gas Inc. 5.9% 02/26/2035 3,679,909 3,978,277 2,000,000 Textron Financial Canada Funding Corp. 4% 04/01/2008 1,985,760 1,992,840 USD 873,000 The Mosaic Co % 12/01/2014 1,038,481 1,048,237 2,750,000 Timberwest Forest Corp. 7% 10/01/2007 2,815,377 2,775,602 2,600,000 TorontoDominion Bank 4.87% 10/28/2016 2,600,000 2,650,258 4,000,000 TorontoDominion Bank 4.97% 10/30/2104 3,997,840 4,036,160 5,000,000 TorontoDominion Bank, Callable 4.54% 09/05/2013 5,025,250 5,015,700 3,500,000 TransAlta Corp. 4.2% 12/05/2007 3,497,480 3,495,310 3,375,000 Union Gas Ltd. 7.2% 06/01/2010 3,778,926 3,654,754 1,769,000 United Rentals North America Inc. 7.75% 11/15/2013 2,095,210 2,098,561 USD 479,000 US Oncology Holdings Inc % 03/15/ , ,559 3,300,000 Wells Fargo Financial Canada Corp. 4.38% 06/30/2015* 3,213,672 3,252,810 38,772 Woodbine Entertainment Group 8.58% 09/01/ ,117 41,206 4,000,000 YPG Holdings Inc. 5.25% 02/15/2016 3,982,840 3,928, ,023, ,805,757 GOVERNMENT BONDS (3.0%) 4,000,000 Canadian Government Bond 3.75% 09/01/2011* 3,961,744 3,958,000 4,000,000 Canadian Government Bond 4% 06/01/2016* 3,974,667 3,964,400 4,000,000 Canadian Government Bond 4.5% 06/01/2015* 4,121,200 4,112,440 4,000,000 Canadian Government Bond 5% 06/01/2014* 4,252,800 4,227, ,000 Canadian Government Bond 6% 06/01/2008* 357, ,479 16,667,720 16,617,519 COMMON EQUITIES (0.5%) 150,000 Timberwest Forest Corp., Stapled Units 2,046,444 2,758,500 REITS (0.3%) 132,623 InnVest REIT* 1,433,821 1,830,197 PROVINCIAL BONDS (0.3%) 1,500,000 City of Montreal 6% 06/01/2043 1,805,400 1,802,895 PREFERRED EQUITY (0.3%) 138 ION Media Networks Inc., 14.25% Preferred 1,358,368 1,246,738 5,000 Nortel Networks Ltd., Preferred, Series F 90,900 97, Rural Cellular Corp., % Preferred, Series B 193, ,719 1,643,243 1,640,957 ROYALTY TRUSTS (0.1%) 20,300 Harvest Energy Trust 332, ,971 Currency Codes: EUR Euro Currency USD U.S. Dollar Total Bonds & Equities (85.2%) 464,952, ,035,796 Short Term Notes (13.1%) 72,588,933 72,588,933 Foreign Currency Forward Contracts (0.2%) (see Schedule A) 1,155,243 Total Investments (98.5%) 537,541, ,779,972 Other Assets (net) (1.5%) 7,944,232 Total Net Assets (100.0%) 552,724,204 Schedule A Foreign Currency Forward Contracts (0.2%) Credit Market Contracts Pay Receive Price Due Date Rating Value $ 1 (1,250,000) European Euro 1,938,287 Canadian $ May07 A1+ 9,339 2 (15,400,000) US $ 18,015,847 Canadian $ May07 A1+ 269,431 3 (21,726,367) US $ 25,287,081 Canadian $ May07 A1 245,836 1 (2,300,000) US $ 2,713,770 Canadian $ Apr07 A1+ 59,262 2 (28,703,000) US $ 33,578,874 Canadian $ Jun07 A1+ 519,428 1 (5,000,000) US $ 5,821,750 Canadian $ Apr07 A1+ 51,947 Total Foreign Currency Forward Contracts Value 1,155,243 *Denotes all or part of securities lent. All common shares unless otherwise noted. Percentages shown in brackets relate investments at market value to total net assets of the Fund. 33

36 Signature Corporate Bond Fund Financial Statements Statements of Net Assets (in $000 s except for per unit amounts and units outstanding) Assets Investments at market value* Cash Short term investments Margin for short sales Income taxes recoverable Daily variation margin on derivative investments Unrealized gain on derivative investments Cash collateral received for securities on loan (Note 5) Receivable for unit subscriptions Receivable for securities sold Receivable for dividends and accrued interest Liabilities Bank overdraft Management fees payable Accrued expenses Unrealized loss on derivative investments Premium received from options contract Payable for securities purchased Payable for unit redemptions Payable for cash collateral under securities lending (Note 5) Investments sold short at market value* Distributions payable Net assets and unitholders' equity March 31, 2007 March 31, , ,350 2, ,589 30,294 1,155 4,488 3,963 1,013 7,089 6, , , ,764 2, ,903 2,494 6,744 5, , ,465 Statements of Operations (in $000 s except for per unit amounts) Income Dividends Interest Securities lending (Note 5) Derivative income (loss) Income distribution from investments Less: Foreign withholding taxes Expenses Management fees (Note 4) Administrative fees (Note 4) Interest expense Legal fees Audit fees Goods and services tax Net income (loss) for the period Realized and unrealized gain (loss) on investments (see Schedule of Commissions) Realized gain (loss) on investments Foreign exchange gain (loss) Capital gain distribution from investments Change in unrealized appreciation (depreciation) of investments Net gain (loss) on investments ,868 30, (180) 30,129 30,761 1,477 2, ,752 2,389 28,377 28,372 (3,457) 2, (492) 10,336 (5,019) 6,891 (3,320) 35,268 25,052 *Investments at cost Investments sold short at cost Net assets per class Insight Units Net asset value per unit Insight Units 464, ,302 68,564 67,742 2,740 2, , ,863 12,633 12, per class Insight Units per unit (Note 2) Insight Units 3,406 3, ,894 21, Number of units outstanding (see Schedule of Fund Unit Transactions) Insight Units 6,950,384 6,972, , ,637 45,939,248 38,430,095 1,224,156 1,275,122 34

37 Signature Corporate Bond Fund Financial Statements Statements of Changes in Net Assets Statements of Changes in Net Assets (cont d) 67,742 77,130 17,828 20,000 2,429 4,017 (20,379) (32,233) (122) (8,216) (619) (2,462) (3,633) (2,462) (4,252) 3,406 3,080 68,564 67,742 Insight Units 12,949 12,336 4,722 7, (5,837) (7,420) (517) 837 (124) (602) (828) (602) (952) ,633 12,949 2,911 2, , (963) (1,107) (215) 844 (28) (121) (158) (121) (186) ,740 2,911 Total Fund 469, , , ,846 28,194 33,015 (117,771) (98,299) 76, ,562 (4,368) (28,232) (28,939) (28,232) (33,307) 35,268 25, , , , , , ,773 25,047 27,863 (90,592) (57,539) 77, ,097 (3,597) (25,047) (24,320) (25,047) (27,917) 30,894 21, , ,863 35

38 Signature Corporate Bond Fund Financial Statements Supplementary Schedules Schedule of Fund Unit Transactions Schedule of Commissions Balance, beginning of period Units issued for cash Units issued for reinvested distributions (Note 6) Units redeemed Units issued on fund merger (Note 1) Balance, end of period 6,972,256 7,799,384 1,817,130 2,031, , ,201 (2,087,738) (3,267,329) 6,950,384 6,972,256 Brokerage commissions 6 6 Soft Dollar commissions Balance, beginning of period Units issued for cash Units issued for reinvested distributions (Note 6) Units redeemed Units issued on fund merger (Note 1) Balance, end of period 288, ,568 61, ,980 11,876 18,185 (94,486) (108,096) 267, ,637 Schedule of Loss Carry Forwards Net capital loss carried forward March 31, 2007 Balance, beginning of period Units issued for cash Units issued for reinvested distributions (Note 6) Units redeemed Units issued on fund merger (Note 1) Balance, end of period Insight Units Balance, beginning of period Units issued for cash Units issued for reinvested distributions (Note 6) Units redeemed Units issued on fund merger (Note 1) Balance, end of period 38,430,095 21,244,760 14,075,369 20,050,161 2,482,684 2,745,798 (9,048,900) (5,610,624) 45,939,248 38,430,095 1,275,122 1,194, , ,754 58,569 92,563 (568,836) (720,197) 1,224,156 1,275,122 Noncapital losses expiring: Total Schedule of Fees (%) March 31, 2007 Schedule of Securities Lending (Note 5) Loaned Collateral (noncash) March 31, 2007 March 31, ,110 13,007 29,931 14,041 Annual management fee rate Insight Units Annual fixed administration fee Insight Units Paid directly by investor 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. 36

39 Signature Dividend Fund Statement of Investment Portfolio March 31, 2007 FINANCIALS (53.7%) 23,000 Alexis Nihon REIT 283, , ,800 American Capital Strategies Ltd.* 16,381,619 15,644, ,100 Bank of America Corp. 16,881,443 18,443, ,300 Bank of Montreal 20,916,737 25,677, ,000 Bank of Montreal 4.5% Preferred, Series 13* 22,500,000 22,707, ,100 Bank of Montreal 4.75% Preferred, Series 6, Class B* 13,461,509 12,991, ,000 Bank of Montreal 5.95% Preferred, Series 10 (USD) 20,622,800 19,049,484 USD 2,300,000 Bank of Montreal Chicago 5.35% 03/12/2009 2,713,640 2,655, ,500 Bank of Nova Scotia 21,256,475 27,259, ,000 Bank of Nova Scotia 4.5% Preferred, Series 14 22,500,000 22,446, ,800 Bank of Nova Scotia, Preferred, Series 13* 7,923,295 8,379, ,000 BNP Paribas 47,896,037 45,821, ,200 Brookfield Asset Management Inc., 4.75% Preferred 11,363,360 11,505,402 24,000 Brookfield Asset Management Inc., Preferred, Series , , ,000 Brookfield Asset Management Inc., Preferred, Series 12 14,100,905 15,696, ,200 Brookfield Asset Management Inc., Preferred, Series 2 18,996,480 23,224, ,100 Brookfield Asset Management Inc., Preferred, Series 4 5,780,278 6,048, ,200 Brookfield Financial Corp., Preferred, Series 13 8,026,279 8,334, ,400 Brookfield Properties Corp., 5.25% Preferred, Series G (USD)* 12,946,253 11,584, ,700 Brookfield Properties Corp., 5.75% Preferred, Series H 17,785,841 19,245, ,000 Brookfield Properties Corp., 6% Preferred, Series F 17,049,800 17,897, ,200 Brookfield Properties Corp., Preferred, Series I* 17,455,000 18,250, ,500 Brookfield Properties Corp., Preferred, Series K 13,762,500 14,511, ,400 Canadian General Investment, 3.9% Preferred, Series 3 6,674,783 6,846, ,900 Canadian Imperial Bank of Commerce 21,822,568 29,145, ,000 Canadian Imperial Bank of Commerce 4.7% Preferred, Series 31 18,125,000 18,393, ,200 Canadian Imperial Bank of Commerce, Preferred, Series 30, Cl* 16,215,948 16,600,668 8,000,000 Canadian Western Bank 5.5% 11/19/2014 8,000,000 7,985,936 2,000,000 Canadian Western Bank 5.96% 10/24/2013 2,034,482 2,009,202 2,000,000 Citigroup Finance Canada Inc. 4.39% 08/04/2009 1,999,380 1,998, ,880 Citigroup Inc. 22,590,782 23,050, ,000 CoOperators General Insurance Co., 5.75% Preferred, Series* 9,021,900 9,442,800 6,010,000 Credit Agricole SA % 10/06/2008 6,010,000 6,010, ,600 EL Financial Corp., 4.75% Preferred, Series 2* 9,015,000 9,141, ,500 EL Financial Corp., 5.30% Preferred, Series 1 10/17/2009 7,490,780 7,873,855 5,300,000 General Electric Capital Corp % 08/27/2008 5,310,118 5,310,123 FINANCIALS (53.7%) (cont d) 562,300 Great West Lifeco Inc., Preferred, Series H* 13,684,872 14,647, ,800 Great West Lifeco Inc., Preferred, Series I* 12,643,350 13,513, ,200 GreatWest Lifeco Inc., 4.8% Preferred, Series E* 12,248,817 12,078,000 90,000 GreatWest Lifeco Inc., 5.2% Preferred, Series G* 2,250,683 2,365,200 3,818,000 HBOS Treasury Services PLC % 09/29/2009 3,818,000 3,820,291 16,200,000 HSBC Bank Canada % 06/02/ ,200,000 16,200, ,100 HSBC Bank Canada, 5% Preferred, Series D* 8,477,500 8,979, ,900 HSBC Bank Canada, 5.1% Preferred, Series 5* 18,297,500 19,424, ,500 Industrial Alliance Insurance and Financial Inc., Preferred* 11,437,500 11,551, ,500 ING Groep NV * 25,959,792 25,942,623 1,800,000 Lloyds TSB Group PLC 25,153,277 22,899, ,500 Manulife Financial Corp. 27,527,575 37,814, ,700 Manulife Financial Corp., 4.65% Preferred, Series 2, * 24,078,714 24,520, ,600 Manulife Financial Corp., Preferred, Series 3, * 5,374,648 5,440,000 9,900,000 Merrill Lynch % 11/09/2009 9,900,000 9,900,000 7,700,000 MI Developments Inc. 6.05% 12/22/2016 7,666,890 7,674, ,500 National Bank of Canada, 4.85% Preferred, Series 16* 6,971,515 7,149, ,000 National Bank of Canada, Preferred, Series 15* 20,017,000 19,832,000 11,800,000 NIFT 4.28% 02/23/ ,800,000 11,792, ,400 Power Financial Corp.* 17,414,327 23,832, ,800 Power Financial Corp., 4.7% Preferred, Series J* 15,847,728 16,193, ,900 Power Financial Corp., 4.95% Preferred, Series K* 12,822,089 13,411, ,200 Power Financial Corp., Preferred, Series L* 17,580,000 18,740, ,800 Premium Income Corp., Preferred 8,095,519 8,130, ,000 Royal Bank of Canada 33,940,206 48,760, ,650 Royal Bank of Canada 4.45% Preferred, Series AA* 14,725,427 14,729, ,000 Royal Bank of Canada, 4.6% Preferred, Series AC 11,400,000 11,669, ,500 Royal Bank of Canada, 4.7% Preferred, Series AB 18,162,500 18,671, ,500 Royal Bank of Canada, 4.7% Preferred, Series K 7,329,150 6,983,280 90,200 Royal Bank of Canada, Preferred, Series W* 2,321,748 2,367,750 2,042 Sumitomo Mitsui Financial Group Inc.* 17,801,971 21,407, ,210 Sun Life Financial Inc. 8,920,239 12,248, ,000 Sun Life Financial Inc.,, Preferred, Series 1* 11,466,130 11,813, ,900 Sun Life, Preferred, Series 4* 15,297,846 15,846,628 1,131,500 TorontoDominion Bank 60,791,878 78,548, ,800 TorontoDominion Bank, 4.85% Preferred, Series O* 22,580,221 23,773, ,900 UBS AG* 21,781,342 22,490,054 6,800,000 Wells Fargo Financial Canada Corp. 4.4% 12/12/2012* 6,789,052 6,803,264 *Denotes all or part of securities lent. CI Investments Inc., the manager, is a corporation controlled by CI Financial Income Fund. Sun Life Financial Inc. owns a significant interest in CI Financial Income Fund, and is therefore, considered an affiliate to CI Investments Inc. Investment in Sun Life Financial Inc. is identified above. All common shares unless otherwise noted. Percentages shown in brackets relate investments at market value to total net assets of the Fund. 37 CIG 610

40 Signature Dividend Fund Statement of Investment Portfolio March 31, 2007 FINANCIALS (53.7%) (cont d) 2,000,000 Woodbridge Finance Corp % 09/08/2008 2,000,000 2,000,000 5,650,000 YPG Holdings Inc. 5.25% 02/15/2016 5,619,004 5,549,486 1,081,764,801 1,171,774,469 ENERGY (10.6%) 1,183,200 Enbridge Inc. 40,540,354 44,559, ,912 EnCana Corp. 14,196,644 18,390, ,506 Husky Energy Inc.* 7,108,364 10,687, ,800 Imperial Oil Ltd. 16,828,455 24,087, ,000 Kinder Morgan Management LLC 9,463,756 9,761, ,100 Nexen Inc. 6,165,395 10,615, ,400 Penn West Energy Trust 3,994,098 4,565, ,500 PetroCanada* 18,613,497 18,940, ,900 Suncor Energy Inc. 37,448,105 38,733, ,000 Talisman Energy Inc. 5,366,110 8,813, ,672 Total SA 11,125,765 11,944, ,400 TransCanada Corp.* 26,677,937 30,656, ,528, ,756,253 TELECOMMUNICATION SERVICES (8.5%) 961,900 BCE Inc., 5.55% Preferred, Series 19 25,064,318 24,836, ,057 BCE Inc.* 29,366,925 32,194,761 1,079,000 BCE Inc., 4.4% Preferred, Series AF 16 27,223,170 27,287, ,000 BCE Inc., 4.486% Preferred, Class H, Series 18 8,374,950 8,374,950 1,044,400 BCE Inc., 5.45% Preferred, Series AA 27,364,184 26,360,656 78,136 Bell Aliant Regional Communications Income Fund 2,584,949 2,307, ,000 Citizens Communications Co. 8,531,794 8,457, ,900 TELUS Corp. 14,161,738 21,610, ,677 TELUS Corp., NonVoting Shares 12,359,058 15,020, ,400 Verizon Communications Inc. 8,990,221 10,305,918 3,137,212 Vodafone Group 9,150,317 9,657, ,171, ,413,304 MATERIALS (7.3%) 24,831 Air Liquide* 4,816,829 6,988, ,800 Alcan Inc., Preferred, Series C* 15,252,343 15,872, ,600 Barrick Gold Corp. 17,881,171 19,092, ,440 Cameco Corp. 19,684,537 23,481, ,800 CCL Industries, Class B 3,957,884 6,419, ,600 Cia Vale do Rio Doce, ADR 9,901,202 15,442, ,500 Falconbridge Ltd., 6.5% Preferred, Series H* 14,003,325 13,917, ,600 Falconbridge Ltd., Preferred, Series 3 6,755,160 7,027,014 90,900 Holcim Ltd.* 7,272,283 10,509, ,000 Seaspan Corp. 14,815,291 15,155, ,740 St. Lawrence Cement Group Inc., * 15,900,441 25,749, ,240, ,655,923 INDUSTRIALS (6.9%) 131,500 Bombardier Inc., Preferred, Class B* 2,064,550 2,623, ,560 Caldwell Partners International Inc., 515, , ,100 Canadian National Railway Co. 5,579,958 8,406, ,250 Canadian Pacific Railway Ltd. 4,558,817 7,420, ,400 Cancap Corp., 5.4% Preferred, 06/30/07 10,117,307 9,716, ,000 Danaos Corp. 6,065,787 6,386, ,100 General Electric Co. 21,578,111 21,069, ,800 Koninklijke Vopak NV* 10,040,487 17,022,038 INDUSTRIALS (6.9%) (cont d) 4,300,000 Macquarie Airports 15,280,082 16,026, ,000 Macquarie Infrastructure Co. Trust* 13,120,084 13,158, ,800 Quebecor World Inc., 6.9% Preferred, Series 5 17,041,720 16,058,980 1,119,100 Quebecor World Inc., Preferred, Series 3* 25,998,289 18,744, ,000 Russel Metals Inc. 7,283,740 7,423, ,900 Waste Management Inc. 4,576,285 4,405,834 28,300 WW Grainger Inc. 2,443,037 2,523, ,263, ,452,881 UTILITIES (5.2%) 2,092,500 Enel SpA 21,273,575 25,848, ,400 Fortis Inc.* 4,767,343 8,414, ,500 Fortis Inc., 4.9% Preferred* 11,287,500 11,580, ,000 Fortis Inc., 5.45% Preferred, Series C* 11,690,900 12,146, ,700 Fortis Inc., Preferred, Series E, Callable/Convertible 17,984,918 19,521,440 98,000 Fortis Inc., Subscription Receipts 2,548,000 2,744,980 47,400 Gaz de France 1,674,346 2,539, ,000 Kinder Morgan Energy Partners LP 11,395,822 11,860, ,000 TransCanada Pipelines Ltd., Preferred, Series Y 19,188,000 19,530, ,810, ,185,920 CONSUMER STAPLES (2.5%) 91,084 Altria Group Inc. 8,770,459 9,234, ,900 George Weston Ltd., 5.15% Preferred, Series 2* 24,618,379 24,311,760 92,550 InBev NV 4,215,945 7,714,522 30,550 Nestle SA, Registered Shares* 10,815,796 13,734,527 48,420,579 54,994,981 CONSUMER DISCRETIONARY (0.7%) 9,840 Idearc Inc. 278, , ,400 Thomson Corp.* 13,001,402 14,505,554 13,280,308 14,904,316 Currency Codes: USD U.S. Dollar Total Bonds & Equities (95.4%) 1,892,480,140 2,085,138,047 Short Term Notes (4.0%) 86,898,557 86,898,557 DERIVATIVE INSTRUMENTS Foreign Currency Forward Contracts (0.1%) (see Schedule A) 920,482 Long Option Contracts (0.1%) (see Schedule B) 179, ,174 Total Return Swaps (0.1%) (see Schedule C) (2,349,509) Total Investments (99.5%) 1,979,558,540 2,170,874,751 Other Assets (net) (0.5%) 11,319,522 Total Net Assets (100.0%) 2,182,194,273 *Denotes all or part of securities lent. All common shares unless otherwise noted. Percentages shown in brackets relate investments at market value to total net assets of the Fund. 38

41 Signature Dividend Fund Statement of Investment Portfolio March 31, 2007 Schedule A Foreign Currency Forward Contracts (0.1%) Credit Market Contracts Pay Receive Price Due Date Rating Value $ 2 (20,000,000) European Euro 30,886,368 Canadian $ May07 A1 23,184 1 (16,500,000) Swiss Franc 15,925,257 Canadian $ May07 A1+ 194,180 1 (18,730,000) US $ 21,809,587 Canadian $ Apr07 A1 195,903 3 (19,539,000) US $ 22,858,390 Canadian $ Jun07 A1+ 353,826 2 (9,590,000) US $ 11,204,566 Canadian $ May07 A1 153,389 Total Foreign Currency Forward Contracts Value 920,482 Schedule B Long Option Contracts (0.1%) No. of underlying Underlying Expiry Strike Premium Paid Market Contracts Interest Interest Date Price (Received) $ Value $ ,400 Kraft Foods Inc. Put 24Sep , ,174 Total Long Option Contracts Value 179, ,174 Schedule C Total Return Swaps (0.1%) Accrued Total Name Due Date Notional Cost Market Value Gain/Loss Forward Fees Gain/Loss BNS Total Return Swap National Bank 15 Pref 5.85% 7Sep07 (740,000) (19,980,000) (20,828,196) (848,196) (19,542) (867,738) BNS Total Return Swap Transcanada Pipelines Ltd Series Y 5.6% 1Jun07 (360,000) (19,170,000) (20,641,109) (1,471,109) (10,662) (1,481,771) Total Return Swaps Value (2,349,509) All common shares unless otherwise noted. Percentages shown in brackets relate investments at market value to total net assets of the Fund. 39

42 Signature Dividend Fund Financial Statements Statements of Net Assets (in $000 s except for per unit amounts and units outstanding) Assets Investments at market value* Cash Short term investments Margin for short sales Income taxes recoverable Daily variation margin on derivative investments Unrealized gain on derivative investments Cash collateral received for securities on loan (Note 5) Premium paid for options contract Receivable for unit subscriptions Receivable for securities sold Receivable for dividends and accrued interest Liabilities Bank overdraft Management fees payable Accrued expenses Unrealized loss on derivative investments Premium received from options contract Payable for securities purchased Payable for unit redemptions Payable for cash collateral under securities lending (Note 5) Investments sold short at market value* Distributions payable Net assets and unitholders' equity *Investments at cost Investments sold short at cost Net assets per class Class X Class Y Class Z Net asset value per unit Class X Class Y Class Z March 31, 2007 March 31, ,085,138 1,984,668 2,453 16,084 86,899 77,784 1, ,430 8,781 2,642 9,485 7,287 5,224 2,194,029 2,103, , ,969 4,102 4, ,383 5,975 11,835 31,924 2,182,194 2,071,592 1,892,480 1,761,191 1,286,810 1,228,771 13,337 12, ,918 58, , , , , Statements of Operations (in $000 s except for per unit amounts) Income Dividends Interest Securities lending (Note 5) Derivative income (loss) Income distribution from investments Less: Foreign withholding taxes Expenses Management fees (Note 4) Administrative fees (Note 4) Interest expense Legal fees Audit fees Goods and services tax Net income (loss) for the period Realized and unrealized gain (loss) on investments (see Schedule of Commissions) Realized gain (loss) on investments Foreign exchange gain (loss) Capital gain distribution from investments Change in unrealized appreciation (depreciation) of investments Net gain (loss) on investments per class Class X Class Y Class Z per unit (Note 2) Class X Class Y Class Z 66,125 74,222 12,934 9, (1,373) (988) 78,128 83,278 26,635 28,907 3,973 4, ,907 2,333 32,537 35,713 45,591 47, , , (315) (33,438) 102, , , , ,296 95, ,326 1,124 1,428 11,946 7,575 40,536 85, ,698 35, Number of units outstanding (see Schedule of Fund Unit Transactions) Class X Class Y Class Z 88,053,493 84,523,775 1,135,648 1,050,062 14,567,871 4,782,019 39,283,199 43,614,691 13,001 15,136 17,977,506 19,301,930 40

43 Signature Dividend Fund Financial Statements Statements of Changes in Net Assets Statements of Changes in Net Assets (cont d) 1,228, , , ,048 81,275 38,592 (332,075) (321,925) 162,265 51, ,980 (67,227) (22,541) (21,402) (17,604) (1,691) (88,629) (41,836) 95, ,326 1,286,810 1,228,771 Class X 534, ,861 52,280 89,305 34,234 23,759 (139,601) (228,976) (53,087) (115,912) (29,934) (15,049) (9,759) (11,622) (738) (39,693) (27,409) 40,536 85, , ,707 12,317 4,744 9,442 10, (9,275) (4,716) 822 1,003 6,586 (836) (232) (271) (192) (17) (1,107) (441) 1,124 1,428 13,337 12,317 Class Y (39) (171) (26) (60) (10) (6) (3) (4) (13) (10) ,794 58, ,296 40,541 12,608 2,903 (12,118) (47,919) 119,786 (4,475) (9,814) (1,574) (2,794) (1,277) (53) (12,608) (2,904) 11,946 7, ,918 58,794 Class Z 236, ,407 27,525 41,675 15,340 9,960 (59,137) (84,155) (16,272) (32,520) (12,657) (5,941) (4,080) (4,569) (331) (16,737) (10,841) 17,698 35, , ,817 41

44 Signature Dividend Fund Financial Statements and Supplementary Schedules Statements of Changes in Net Assets (cont d) Schedule of Fund Unit Transactions Total Fund 2,071,592 1,640, , , ,306 75,556 (552,245) (687,862) 163, , ,599 (120,478) (45,343) (38,309) (35,268) (2,830) (158,787) (83,441) 166, ,296 2,182,194 2,071,592 Balance, beginning of period Units issued for cash Units issued for reinvested distributions (Note 6) Units redeemed Units issued on fund merger (Note 1) Balance, end of period Balance, beginning of period Units issued for cash Units issued for reinvested distributions (Note 6) Units redeemed Units issued on fund merger (Note 1) Balance, end of period 84,523,775 56,368,157 20,784,581 37,085,541 5,592,525 2,806,392 (22,847,388) (23,318,384) 11,582,069 88,053,493 84,523,775 1,050, , , ,820 71,517 29,892 (791,738) (417,949) 72,724 1,135,648 1,050,062 Balance, beginning of period Units issued for cash Units issued for reinvested distributions (Note 6) Units redeemed Units issued on fund merger (Note 1) Balance, end of period 4,782,019 5,297,533 9,730,399 3,421,455 1,034, ,050 (979,212) (4,189,019) 14,567,871 4,782,019 Class X Balance, beginning of period Units issued for cash Units issued for reinvested distributions (Note 6) Units redeemed Units issued on fund merger (Note 1) Balance, end of period 43,614,691 53,670,653 4,270,770 7,737,088 2,801,052 2,061,872 (11,403,314) (19,854,922) 39,283,199 43,614,691 Class Y Balance, beginning of period Units issued for cash Units issued for reinvested distributions (Note 6) Units redeemed Units issued on fund merger (Note 1) Balance, end of period 15,136 20,506 9,039 1, (3,233) (15,269) 13,001 15,136 Class Z Balance, beginning of period Units issued for cash Units issued for reinvested distributions (Note 6) Units redeemed Units issued on fund merger (Note 1) Balance, end of period 19,301,930 22,106,937 2,243,061 3,612,632 1,252, ,941 (4,819,595) (7,280,580) 17,977,506 19,301,930 42

45 Signature Dividend Fund Financial Statements Supplementary Schedules Schedule of Commissions Brokerage commissions 1,207 2,049 Soft Dollar commissions Schedule of Fees (%) Annual management fee rate Class X Class Y Class Z March 31, Paid directly by investor Schedule of Loss Carry Forwards Net capital loss carried forward March 31, 2007 Annual fixed administration fee Class X Class Y Class Z Noncapital losses expiring: Total Schedule of Securities Lending (Note 5) Loaned Collateral (noncash) March 31, 2007 March 31, , , , ,423 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. 43

46 Signature High Income Fund Statement of Investment Portfolio March 31, 2007 CORPORATE BONDS (28.1%) USD 8,751,000 Ace Cash Express Inc % 10/01/2014 9,944,742 10,406,551 USD 3,823,000 Advance Micro Devices 7.75% 11/01/2012 4,532,313 4,463,492 4,648,000 Advantage Energy Income Fund, Convertible 7.5% 10/01/2009 4,648,000 4,625,225 USD 6,538,000 American Railcar Industries Inc. 7.5% 03/01/2014 7,745,871 7,756,015 USD 2,215,318 Amkor Technology Inc. 10.5% 05/01/2009* 2,660,253 2,564,085 USD 8,007,000 Angiotech Pharmaceuticals Inc. 7.75% 04/01/2014* 8,700,397 8,420,043 USD 18,123,000 Aramark Term Loan 7.47% 01/27/ ,383,314 21,106,953 USD 9,196,000 Baker & Tylor 11.5% 07/01/ ,255,381 11,041,910 USD 11,900,000 Bank of Montreal Chicago 5.35% 03/12/ ,040,138 13,739,118 11,238,600 Bowater Inc % 11/30/ ,257,418 12,210,177 USD 6,599,000 Bowater Inc., Callable % 03/15/2010 8,649,497 7,637,908 USD 2,705,000 Cablevision Systems Corp. 9.87% 04/01/2009 3,330,720 3,310,435 USD 6,916,700 Calpine Generating Co. 11.5% 04/01/2011 8,111,007 8,346, ,000 Canada Housing Trust No % 09/15/ , ,496 USD 14,780,156 CanWest MediaWorks Inc. 8% 09/15/2012* 17,731,184 17,597,658 USD 2,176,000 Cascades Inc. 7.25% 02/15/2013 2,442,429 2,512,296 USD 2,848,000 CCH II LLC 10.25% 09/15/2010 3,274,878 3,464,890 5,000,000 CCIC 2006WEM 5.248% 01/15/2022 4,999,860 4,983,250 USD 1,224,000 CCO Holdings LLC % 12/15/2010 1,401,639 1,441,430 USD 10,779,000 Charter Communications Holdings II LLC 10.25% 09/15/ ,164,974 13,129,338 USD 70,000 Charter Communications Holdings LLC 10% 04/01/ ,906 81,728 USD 2,339,000 Charter Communications Holdings LLC 10.25% 01/15/2010 2,596,587 2,717,365 USD 1,031,250 Charter Communications Holdings LLC 10.75% 10/01/2009 1,194,946 1,218,905 USD 2,628,000 Charter Communications Holdings LLC 8.625% 04/01/2009 2,506,775 3,034,152 USD 1,054,000 Charter Communications Holdings LLC 9.625% 11/15/2009 1,087,929 1,221,457 USD 2,856,000 Charter Communications Inc % 11/16/2009 2,456,315 4,470,599 USD 3,006,000 Chemed Corp. 8.75% 02/24/2011 3,546,253 3,605,055 USD 18,841,000 Cincinnati Bell Inc % 01/15/ ,856,458 22,242,273 8,370,000 CIT Group Holdings Inc. 4.72% 02/10/2011 8,366,652 8,400,969 6,000,000 Citigroup Finance Canada Inc. 4.37% 02/03/2011 5,999,100 6,009,780 4,600,000 Citigroup Finance Canada Inc. 4.39% 08/04/2009 4,598,574 4,595,492 USD 9,380,000 Clarke American Corp., Senior Notes, Series WI, Callable 11.75% 12/15/ ,854,487 12,508, ,000 Cominar REIT 6.3% 06/30/ , ,743 USD 8,149,000 CoucheTard Finance Corp., Callable 7.5% 12/15/ ,097,680 9,667,141 12,830,000 Credit Agricole SA % 10/06/ ,830,000 12,830,000 USD 2,268,000 CSC Holdings Inc 7.25% 07/15/2008 2,744,540 2,651,246 USD 260,000 CSC Holdings Inc % 04/01/ , ,687 USD 5,476,400 CSN Islands VIII Corp. 9.75% 12/16/2013 7,249,076 7,207,953 USD 3,364,200 Dex Media West LLC 9.875% 08/15/2013 4,752,413 4,233,701 USD 6,038,000 Dobson Communication Corp. 9.61% 10/15/2012 6,955,425 6,971,159 USD 7,274,000 Dollarama FRN % 08/15/2012 8,334,020 8,440,171 CORPORATE BONDS (28.1%) (cont d) USD 4,744,000 Dollarama Group LP 8.875% 08/15/2012 5,589,522 5,709,955 USD 19,745,000 Domtar Inc % 10/15/ ,907,870 23,879,382 USD 5,900,000 Dow Jones CDX HY 6.75% 06/29/2012 6,806,562 6,743,713 USD 5,250,000 Dow Jones CDX HY 7 T1 Series 7T % 12/29/2011 6,445,817 6,280,798 USD 1,415,700 Dow Jones CDX HY T4 Series % 12/29/2009 1,961,472 1,646,752 4,320,000 Dundee REIT, Convertible Debenture 5.7% 03/31/2015* 4,320,000 5,572,800 4,530,000 Falconbridge Ltd. 8.5% 12/08/2008 4,639,531 4,818,788 3,008,000 First Capital Realty Inc. 5.5% 09/30/2017 3,136,442 3,098,240 4,800,000 First Capital Realty Inc., Restricted Shares 5.5% 09/30/2017 4,848,000 4,944,000 USD 5,210,000 Flextronics International Ltd. 6.5% 05/15/2013 5,908,813 5,955,042 USD 9,661,000 FMG Finance Pty. Ltd. 10% 09/01/ ,327,829 12,130,068 USD 13,318,000 FMG Finance Pty. Ltd % 09/01/ ,819,532 17,682,707 USD 6,404,000 Foot Locker Inc. 8.5% 01/15/2022 7,305,643 7,550,841 USD 2,581,000 FreeportMcMoRan Copper & Gold Inc. 8.25% 04/01/2015 3,127,072 3,207,104 EUR 2,719,000 FS Funding AS % 05/15/2016 3,810,345 4,277,069 EUR 7,866,700 Gaz Capital for Gazprom 7.8% 09/27/ ,147,595 13,322,060 11,700,000 General Electric Capital Corp % 08/27/ ,722,335 11,722,347 USD 5,150,000 General Motors Acceptance Corp. 7.75% 01/19/2010 5,822,654 6,080,120 USD 30,698,900 Gerdau Ameristeel Corp % 07/15/ ,859,373 37,658,555 2,090,000 GMAC Canada Ltd. 4.55% 09/17/2007 1,986,754 2,076,624 3,150,000 GMAC Canada Ltd. 6.15% 06/20/2007 3,098,025 3,156,016 USD 10,502,000 Goodyear Tire 11% 03/01/ ,235,988 13,322,410 USD 2,385,000 Great Canadian Gaming Corp. 6.86% 02/12/2014 2,778,878 2,753,596 USD 9,884,000 Great Canadian Gaming Corp. 7.25% 02/15/ ,736,568 11,482,872 6,200,000 Greater Toronto Airports Authority % 10/24/2008 6,200,000 6,200,000 USD 6,437,000 H&E Equipment Services Inc % 07/15/2016 8,011,369 7,896,313 USD 6,348,000 Harrah s Operating Co. Inc % 06/01/2015 6,079,700 6,321,322 8,145,000 HBOS Treasury Services PLC % 09/29/2009 8,145,000 8,149,887 USD 14,786,000 HealthSouth Corp % 06/15/ ,013,519 18,564,868 USD 10,865,400 HealthSouth Corp. 8.15% 03/10/ ,734,546 12,623,027 USD 3,194,000 HealthSouth Corp., Callable 10.75% 10/01/2008 3,474,051 3,706,064 USD 1,108,000 Herbst Gaming Inc % 06/01/2012 1,287,837 1,296,828 USD 3,627,000 Hertz Corp % 01/01/2014 4,222,116 4,423,094 USD 11,722,000 Hexion US/NOVA 9.75% 11/15/ ,591,709 14,193,372 USD 7,541,000 Horizon PCS Inc., Callable % 07/15/ ,396,158 9,642,387 USD 5,417,000 Hughes Network 9.5% 04/15/2014 6,564,117 6,676,343 USD 4,832,000 Intelsat Bermuda Ltd % 01/15/2015 5,749,762 5,578,775 USD 21,911,000 Intelsat Bermuda Ltd., Callable 11.25% 06/15/ ,824,936 28,672,821 USD 3,137,000 IPC US REIT (USD) 5.75% 09/30/2012 3,650,617 3,934,379 USD 11,988,600 IPSCO Inc. 8.75% 06/01/ ,371,872 14,844,914 USD 18,109,000 Iron Mountain Inc. 7.5% 03/15/ ,106,494 18,109,000 *Denotes all or part of securities lent. All common shares unless otherwise noted. Percentages shown in brackets relate investments at market value to total net assets of the Fund. 44 CIG 686

47 Signature High Income Fund Statement of Investment Portfolio March 31, 2007 CORPORATE BONDS (28.1%) (cont d) 14,507,000 Iron Mountain Inc % 04/01/ ,363,866 17,234,746 USD 24,244,400 Jean Coutu Group Inc. 8.5% 08/01/ ,159,199 30,405,569 USD 4,429,000 K. Hovnanian Enterprises 6% 01/15/2010 4,567,979 4,806,683 USD 2,735,000 K. Hovnanian Enterprises 8.875% 04/01/2012* 2,965,955 3,039,275 USD 23,388,000 Levi Strauss & Co % 12/15/ ,213,072 29,635,313 USD 9,141,000 Levi Strauss & Co. 9.28% 04/01/ ,833,330 10,764,796 USD 5,116,000 Lyondell Chemical Co. 8% 09/15/2014 5,812,777 6,187,233 USD 1,209,000 Macdermaid Inc. 9.5% 04/15/2017 1,400,019 1,395,848 USD 37,237,752 Masonite International Corp. 11% 04/06/ ,664,711 39,983,270 USD 3,695,000 Medcath Holdings 9.875% 07/15/2012 4,502,996 4,618,003 USD 6,648,000 Mercer International Inc. 9.25% 02/15/2013 6,619,286 7,694,622 6,970,000 Met Life Global Funding 4.35% 02/10/2009 6,964,215 6,886,081 USD 9,040,000 Metals USA Inc % 01/15/ ,428,115 10,228,370 USD 2,830,000 Metropcs Wireless Inc. 9.25% 11/01/2014 3,228,738 3,455,244 USD 7,233,000 MGM Mirage Inc % 02/27/2014 7,926,738 7,766,285 USD 8,088,000 MGM Mirage Inc. 8.5% 09/15/2010 9,800,563 9,979,969 USD 13,744,200 Mobifon Holdings BV 12.5% 07/31/ ,551,597 17,177,473 4,180,000 Molson Coors Capital Finance Co., Senior Notes 5% 09/22/2015 4,098,374 4,144,261 6,970,000 NAV Canada 4.428% 02/24/2011 6,970,000 7,002,829 USD 9,972,000 Neff Rental LLC 11.25% 06/15/ ,248,104 12,779,597 USD 9,021,000 Neiman Marcus Group Inc % 10/15/2015* 10,911,844 11,612,921 USD 5,994,400 Norcross Safety Products LLC 9.875% 08/15/2011 8,266,564 7,336,070 USD 15,441,000 NXP Funding LLC 7.875% 10/15/ ,460,535 18,406,762 USD 16,645,000 OPTI Canada 8.25% 12/15/ ,774,781 19,986,145 USD 9,085,000 Owens Brockway Glass Container Inc. 8.75% 11/15/ ,960,445 11,039,742 USD 4,801,000 Panolam Industries International Inc % 10/01/2013 5,525,953 5,958,708 USD 4,374,000 Park Place Entertainment Corp. 7% 04/15/2013 5,081,472 5,365,616 USD 18,127,000 Pathmark Stores Inc. 8.75% 02/01/ ,370,095 21,634,824 USD 2,967,000 Paxon Communication Corp % 01/15/2012 3,414,043 3,502,618 4,426,000 Pembina Pipeline Income Fund 7.35% 12/31/2010 4,439,563 5,621,020 USD 11,511,000 Petroquest Energy Inc % 05/15/ ,119,965 13,888,049 6,125,000 Progress Energy Trust 6.75% 06/30/2010 6,125,000 6,201,562 3,751,000 Provident Energy Trust 8.75% 12/31/2008 3,821,239 4,368,415 4,069,000 Province Healthcare Co. 7.5% 06/01/2013 5,557,487 4,768,323 USD 4,294,000 Rathgibson Inc % 02/15/2014 5,388,973 5,230,298 5,580,000 RBC Capital Trust 4.87% 12/31/2050 5,567,054 5,574,978 USD 4,596,000 Remington Arms Co. Inc. 10.5% 02/01/2011 5,046,361 5,306,302 USD 4,825,000 RH Donnelley Finance Corp % 12/15/2012 7,011,410 6,058,129 USD 3,595,000 Rhodia SA 8.875% 06/01/2011 4,267,521 4,321,355 16,966,000 Rogers Wireless Inc % 12/15/ ,226,028 18,873,148 USD 2,002,000 Rogers Wireless Inc. 8% 12/15/2012 2,379,735 2,444,310 USD 6,640,000 Rural Cellular Corp % 11/01/2012 7,761,713 7,972,845 USD 7,191,000 Rural Cellular Corp. 8.25% 03/15/2012 8,599,243 8,675,959 USD 2,998,000 Rural Cellular Corp. 9.75% 01/15/2010* 3,508,549 3,565,174 USD 2,782,000 Sabine Pass Lng 7.25% 11/30/2013 3,153,265 3,236,042 7,975,000 Saskatchewan Wheat Pool Inc. 8% 04/08/2013 7,982,908 8,254,125 7,073,000 Shaw Communications Inc. 7.5% 11/20/2013 7,131,884 7,893,822 5,604,000 Sherritt International Corp % 11/26/2012 5,672,149 5,888,067 CORPORATE BONDS (28.1%) (cont d) USD 7,303,000 Skilled Healthcare 11.5% 01/15/2014 9,170,797 9,380,224 2,069,000 Speciality Foods 12/14/2011 7,499,800 2,069,000 USD 6,146,000 Station Casinos 6% 04/01/2012 6,702,056 6,874,105 USD 2,536,000 STATS ChipPAC Ltd. 7.5% 07/19/2010 3,011,474 3,045,695 USD 2,337,000 Steel Dynamics Inc. 6.75% 04/01/2015 2,712,103 2,698,178 2,101,000 Stelco Inc. 02/01/ , ,110 USD 11,501,000 Stelco Inc % 03/31/ ,989,526 13,809,592 5,363,300 Swift Trust 5.3% 05/06/2007 5,251,864 5,363,193 USD 7,670,000 The Mosaic Co % 12/01/2014 9,121,881 9,209,597 9,575,800 Timberwest Forest Corp. 7% 10/01/2007 9,620,605 9,664,951 USD 10,836,000 United Rentals North America Inc. 7.75% 11/15/ ,879,032 12,854,723 USD 2,481,000 US Oncology Holdings Inc % 03/15/2012 2,867,965 2,893,077 2,138,000 Vault Energy Trust 8% 06/30/2010 2,138,000 2,138,000 5,692,600 Harvest Energy Trust 10.5% 01/31/2008 5,759,155 5,892,410 6,000,000 Woodbridge Finance Corp % 09/08/2008 6,000,000 6,000,000 3,205,000 YPG Holdings Inc. 5.25% 02/15/2016 3,169,084 3,147,983 1,232,832,161 1,231,661,600 COMMON EQUITIES (23.2%) 19,400 Air Liquide 5,219,493 5,460, ,379 Altria Group Inc.* 16,525,638 17,475, ,500 American Capital Strategies Ltd* 11,638,997 12,917, ,000 Amica Mature Lifestyles Inc. 2,246,600 3,059, ,720 Bank of America Corp. 13,538,016 14,945, ,700 Bank of Montreal 17,353,841 20,337, ,200 Bank of Nova Scotia 17,608,872 22,084, ,400 Barrick Gold Corp. 8,787,979 7,885, ,812 BCE Inc. (CAD)* 22,893,790 25,689, ,676 BNP Paribas 36,177,361 35,774, ,900 Caldwell Partners International Inc., 216, , ,800 Cameco Corp. 16,591,409 18,106, ,852 Canadian Imperial Bank of Commerce 17,136,773 23,028, ,700 Canadian National Railway Co. 6,824,114 6,553,404 89,000 Canadian Pacific Railway Ltd. 5,634,079 5,780,550 74,100 CCL Industries, Class B 2,396,864 2,752, ,000 Cia Vale do Rio Doce, ADR 11,442,584 12,043, ,000 Citigroup Inc. 17,874,134 17,782, ,700 Citizens Communications Co.* 5,988,342 6,588, ,400 Danaos Corp. 3,839,391 4,969, ,000 Enbridge Inc. 35,037,150 34,345, ,600 EnCana Corp. 13,553,854 14,109,440 1,704,200 Enel SpA 16,820,432 21,051,836 1,303,800 Fort Chicago Energy Partners LP 15,005,070 13,689, ,700 Fortis Inc.* 3,507,175 3,604, ,000 Fortis Inc., Subscription Receipts 4,992,000 5,377,920 37,300 Gaz de France 1,968,966 1,998, ,200 General Electric Co. 16,620,033 16,460, ,550 Great Canadian Gaming Corp.* 1,757,923 1,714,363 39,000 Holcim Ltd.* 4,620,994 4,508, ,800 Husky Energy Inc. 7,966,431 8,291,848 39,095 Idearc Inc. 1,079,663 1,584, ,200 Imperial Oil Ltd. 18,634,404 18,797,760 57,200 InBev NV 4,632,569 4,767, ,000 ING Groep NV 20,900,738 20,256,234 *Denotes all or part of securities lent. All common shares unless otherwise noted. Percentages shown in brackets relate investments at market value to total net assets of the Fund. 45

48 Signature High Income Fund Statement of Investment Portfolio March 31, 2007 COMMON EQUITIES (23.2%) (cont d) 7,049,300 Inter Pipeline Fund 60,043,746 65,417, ,800 Kinder Morgan Energy Partners LP 8,230,062 9,171, ,134 Kinder Morgan Management LLC 6,990,125 7,994, ,000 KKR Private Equity Investors LP 21,162,731 21,390, ,600 Koninklijke Vopak NV 6,932,420 7,293,308 1,436,470 Lloyds TSB Group PLC 14,936,085 18,274,869 3,112,600 Macquarie Airports 8,271,329 11,600, ,100 Macquarie Infrastructure Co. Trust* 8,137,360 11,030,353 1,142,400 Macquarie Media Group Ltd. 4,762,887 4,759,289 85,700 Manulife Financial Corp. 3,314,019 3,402,290 23,100 Nestle SA, Registered Shares 10,138,866 10,385, ,300 Nexen Inc. 7,899,265 8,295, ,700 Otelco Inc. 15,009,488 19,208, ,300 PetroCanada 14,363,476 14,822, ,000 Power Financial Corp. 19,097,763 18,593,460 1,426,000 Primary Energy Recycling Corp. 14,474,263 12,819, ,800 Resolve Business Outsourcing 8,813,066 8,004, ,080 Royal Bank of Canada 28,039,192 38,759, ,400 Russel Metals Inc. 2,159,934 5,607, ,100 Seaspan Corp. 9,134,334 11,818, ,900 St. Lawrence Cement Group Inc., 8,362,629 11,036, ,360 Student Transportation of America Inc. 5,639,775 4,771,086 1,550 Sumitomo Mitsui Financial Group Inc. 17,472,697 16,249, ,000 Sun Life Financial Inc. 9,348,367 9,558, ,000 Suncor Energy Inc. 28,982,055 30,220, ,500 Talisman Energy Inc. 6,891,255 6,878, ,300 TELUS Corp. 17,902,894 17,569, ,300 TELUS Corp., NonVoting Shares 12,390,049 12,175, ,000 Thomson Corp. 11,216,880 10,996, ,000 Timberwest Forest Corp., Stapled Units 12,683,520 18,242, ,292 TorontoDominion Bank 57,796,741 62,290, ,300 Total SA 9,210,967 9,326, ,100 TransCanada Corp.* 23,652,403 23,934, ,000 UBS AG* 17,638,294 17,558, ,900 Verizon Communications Inc.* 7,136,386 8,620,371 2,605,698 Vodafone Group 6,676,501 8,021,084 87,500 Waste Management Inc. 3,515,713 3,476,199 22,200 WW Grainger Inc. 2,033,441 1,979, ,492,903 1,015,548,411 INCOME TRUSTS (14.6%) 1,237,341 AltaGas Income Trust 26,557,780 30,265,361 1,274,430 Arctic Glacier Income Fund 15,666,601 16,198, ,800 Armtec Infrastructure Income Fund 2,952,822 3,268, ,700 Autocanada Income Fund Unit 5,314,604 5,461, ,578 Bell Aliant Regional Communications Income Fund 11,452,884 10,086, ,430 BFI Canada Income Fund 15,961,196 18,219, ,700 Boston Pizza Royalties Income Fund 12,107,616 12,913, ,200 Canadian Helicopters Income Fund 7,016,055 7,172,000 2,168,800 Canadian Oil Sands Trust 35,025,345 61,290,288 1,898,200 Canexus Income Fund 18,096,024 13,040,634 1,264,950 CanWel Building Materials Income Fund 10,980,802 4,933,305 91,500 CCS Income Trust 1,953,464 3,354,390 1,510,500 CI Financial Income Fund 45,794,725 41,689,800 1,233,800 Cineplex Galaxy Income Fund 16,315,846 19,358,322 INCOME TRUSTS (14.6%) (cont d) 718,900 CML Healthcare Income Fund 8,662,734 10,316, ,300 Colabor Income Fund 2,373,102 2,301, ,600 Consumers' Waterheater Income Fund 4,207,892 4,771,628 1,136,700 Contrans Income Fund* 14,395,467 11,821, ,600 Davis & Henderson Income Fund 14,637,851 16,327, ,600 Energy Savings Income Fund 4,995,596 3,877, ,100 Enerplus Resources Fund 26,100,258 36,383,770 34,600 Gateway Casinos Income Fund 558, , ,100 Genivar Income Fund Trust 3,165,367 4,852, ,900 Jazz Air Income Fund 8,406,710 6,927, ,800 Keyera Facilities Income Fund 7,850,758 9,809, ,700 Labrador Iron Ore Royalty Income Fund 11,514,579 17,574, ,500 Liquor Stores Income Fund 8,603,861 12,197, ,500 Livingston International Income Fund 14,982,901 12,660, ,750 Morneau Sobeco Income Fund 3,314,150 4,133, ,926 Mullen Group Income Fund 27,244,735 17,956,650 1,249,200 Newport Partners Income Fund 11,408,565 7,557, ,300 OFI Income Fund 7,234,860 6,004, ,200 Pembina Pipeline Income Fund* 8,807,849 10,724, ,556 Pengrowth Energy Trust (CAD)* 8,640,644 6,857, ,000 Pizza Pizza Royalty Income Fund 3,339,606 3,204, ,700 Pollard Banknote Income Fund 4,002,117 3,703,670 1,002,840 Royal Utilities Income Fund 10,429,399 12,034,080 2,200,600 Spectra Energy Income Fund 25,121,349 21,895, ,700 Supremex Income Fund 4,775,213 4,275,415 3,056,400 Teranet Income Fund 30,486,992 28,699, ,100 Total Energy Services Trust 8,658,192 7,844,662 1,848,385 TransForce Income Fund 28,093,386 25,877, ,200 UE Waterheater Income Fund* 5,865,063 7,443, ,100 Wajax Income Fund 6,514,503 10,439,361 4,484,110 Yellow Pages Income Fund 61,971,286 61,073, ,350 Yellow Pages Income Fund, Warrants (14Dec07) 29, ,559, ,513,601 REITS (13.0%) 593,400 Alexis Nihon REIT 6,417,219 11,037, ,600 Allied Properties REIT 11,566,840 20,382,600 1,091,886 Artis REIT 14,578,618 18,234,496 3,058,393 Calloway REIT* 64,091,305 85,298,581 1,077,100 Canadian Apartment Properties REIT* 12,673,622 22,199, ,100 Canadian Hotel Income Properties REIT 6,213,104 12,035,935 2,674,900 Chartwell Seniors Housing REIT 30,469,967 38,037,078 1,854,900 Cominar REIT 21,995,237 43,775, ,300 Crombie REIT 7,793,217 11,110, ,600 Dundee REIT* 17,795,451 32,419,020 3,608,500 H&R REIT 55,398,754 88,841,270 2,645,897 InnVest REIT* 24,056,840 36,513,379 5,048,690 InStorage REIT 7,320,600 7,219, ,000 InterRent REIT 2,579,500 2,438, ,100 IPC US REIT (USD) 2,835,090 3,617,800 1,551,200 Primaris Retail REIT 13,630,999 31,520,384 4,170,500 RioCan REIT 69,666, ,595, ,083, ,276,371 *Denotes all or part of securities lent. CI Investments Inc., the manager, is a corporation controlled by CI Financial Income Fund. Sun Life Financial Inc. owns a significant interest in CI Financial Income Fund, and is therefore, considered an affiliate to CI Investments Inc. Investments in CI Financial Income Fund and Sun Life Financial Inc. are identified above. All common shares unless otherwise noted. Percentages shown in brackets relate investments at market value to total net assets of the Fund. 46

49 Signature High Income Fund Statement of Investment Portfolio March 31, 2007 ROYALTY TRUSTS (8.5%) 4,525,500 ARC Energy Trust* 79,971,222 96,166,875 1,691,800 Bonavista Energy Trust 41,222,137 52,192,030 1,052,000 Crescent Point Energy Trust* 15,497,973 19,440,960 1,438,000 Focus Energy Trust* 21,381,566 25,711,440 80,920 High Arctic Energy Services Trust 812, , ,223 Keg Royalties Income Fund 8,092,842 8,715, ,800 Northland Power Income Fund 11,395,103 9,854,934 2,210,400 Penn West Energy Trust 62,022,903 75,087,288 2,255,300 Progress Energy Trust 29,200,055 29,476, ,500 Royal LePage Franchise Services Fund 5,840,572 7,191,730 1,454,200 Vermilion Energy Trust* 24,434,361 45,952, ,871, ,022,154 PREFERRED EQUITY (1.5%) 770 ION Media Networks Inc., 14.25% Preferred 7,571,009 6,956,439 1,648,200 Nortel Networks Corp., Preferred, Series 7, * 27,874,607 30,903,750 1,240,000 Nortel Networks Ltd., Preferred, Series F* 21,614,683 24,180,000 1,600 Rural Cellular Corp., % Preferred, Series B 1,532,993 2,373,750 58,593,292 64,413,939 GOVERNMENT BONDS (0.8%) 11,200,000 Canadian Government Bond 3% 06/01/2007* 11,131,837 11,177,264 1,072,000 Canadian Government Bond 3.75% 09/01/2011* 1,064,080 1,060,744 2,000,000 Canadian Government Bond 4% 06/01/2016* 1,992,000 1,982,200 3,260,000 Canadian Government Bond 5.25% 06/01/2013* 3,591,868 3,470,922 17,346,000 Canadian Government Bond 6% 06/01/2008* 17,780,793 17,718,766 35,560,578 35,409,896 Schedule A Foreign Currency Forward Contracts (0.3%) Credit Market Contracts Pay Receive Price Due Date Rating Value $ 1 (11,297,550) Canadian $ 12,300,000 Australian $ May07 A1+ 147,882 1 (25,500,000) Australian $ 23,460,000 Canadian $ May07 A1+ (268,335) 3 (27,023,000) European Euro 41,874,325 Canadian $ May07 A1 173,534 6 (107,890,000) US $ 126,140,913 Canadian $ May07 A1 1,812,289 6 (142,292,252) US $ 165,613,998 Canadian $ May07 A1 1,611,648 4 (351,836,960) US $ 411,660,865 Canadian $ Jun07 A1+ 6,423,263 1 (79,186,500) US $ 93,432,151 Canadian $ Apr07 A1+ 2,040,319 1 (8,900,000) US $ 10,363,338 Canadian $ Apr07 A1 93,088 Total Foreign Currency Forward Contracts Value 12,033,688 Schedule B Long Option Contracts (0.1%) No. of underlying Underlying Expiry Strike Premium Paid Market Contracts Interest Interest Date Price (Received) $ Value $ 1, ,800 Kraft Foods Inc. Put 24Sep , ,850 Total Long Option Contracts Value 339, ,850 Total Bonds & Equities (89.7%) 3,544,992,630 3,922,845,972 Short Term Notes (9.4%) 410,194, ,194,862 DERIVATIVE INSTRUMENTS Foreign Currency Forward Contracts (0.3%) (see Schedule A) 12,033,688 Long Option Contracts (0.1%) (see Schedule B) 339, ,850 Total Investments (99.5%) 3,955,527,305 4,345,579,372 Other Assets (net) (0.5%) 30,896,688 Total Net Assets (100.0%) 4,376,476,060 Currency Codes: EUR Euro Currency USD U.S. Dollar *Denotes all or part of securities lent. All common shares unless otherwise noted. Percentages shown in brackets relate investments at market value to total net assets of the Fund. 47

50 Signature High Income Fund Financial Statements Statements of Net Assets (in $000 s except for per unit amounts and units outstanding) Assets Investments at market value* Cash Short term investments Margin for short sales Income taxes recoverable Daily variation margin on derivative investments Unrealized gain on derivative investments Cash collateral received for securities on loan (Note 5) Premium paid for options contract Receivable for unit subscriptions Receivable for securities sold Receivable for dividends and accrued interest Liabilities Bank overdraft Management fees payable Accrued expenses Unrealized loss on derivative investments Premium received from options contract Payable for securities purchased Payable for unit redemptions Payable for cash collateral under securities lending (Note 5) Investments sold short at market value* Distributions payable Net assets and unitholders' equity March 31, 2007 March 31, ,922,846 3,798,976 17, , ,574 12, ,309 32,211 2,240 1,288 41,131 39,100 4,431,962 4,290,149 8, ,885 26,446 16,854 7,797 7,325 21,232 19,944 55,486 57,946 4,376,476 4,232,203 Statements of Operations (in $000 s except for per unit amounts) Income Dividends Interest Securities lending (Note 5) Derivative income (loss) Income distribution from investments Less: Foreign withholding taxes Expenses Management fees (Note 4) Administrative fees (Note 4) Interest expense Legal fees Audit fees Goods and services tax Net income (loss) for the period Realized and unrealized gain (loss) on investments (see Schedule of Commissions) Realized gain (loss) on investments Foreign exchange gain (loss) Capital gain distribution from investments Change in unrealized appreciation (depreciation) of investments Net gain (loss) on investments 41,186 34, , , , (3,192) (1,123) 271, ,084 34,286 39,155 5,514 6, ,483 3,181 42,347 48, , , , ,030 3,308 (2,942) (172,330) 264,041 (574) 483, , ,408 *Investments at cost Investments sold short at cost Net assets per class Net asset value per unit 3,544,993 3,231,709 2,557,684 2,811,700 35,148 34,023 1,783,644 1,386, per class per unit (Note 2) 124, ,560 1,871 5, , , Number of units outstanding (see Schedule of Fund Unit Transactions) 162,101, ,503,152 2,447,305 2,342, ,142,928 95,168,420 48

51 Signature High Income Fund Financial Statements Statements of Changes in Net Assets Statements of Changes in Net Assets (cont d) 2,811,700 2,010, ,521 1,337, , ,089 (969,498) (990,605) (223,572) 517,254 (42,387) (58,587) (112,265) (142,582) (154,652) (201,169) 124, ,560 2,557,684 2,811,700 1,386, , ,688 1,117, ,213 98,307 (346,967) (400,303) 418, ,830 (34,512) (28,752) (89,701) (70,997) (124,213) (99,749) 102, ,690 1,783,644 1,386,480 34,023 16,547 16,231 28,812 1,831 1,806 (16,542) (16,037) 1,520 14,581 (622) (661) (1,644) (1,602) (2,266) (2,263) 1,871 5,158 35,148 34,023 Total Fund 4,232,203 2,487,311 1,271,440 2,484, , ,202 (1,333,007) (1,406,945) 196,882 1,347,665 (77,521) (88,000) (203,610) (215,181) (281,131) (303,181) 228, ,408 4,376,476 4,232,203 49

52 Signature High Income Fund Financial Statements Supplementary Schedules Schedule of Fund Unit Transactions Schedule of Commissions Balance, beginning of period Units issued for cash Units issued for reinvested distributions (Note 6) Units redeemed Units issued on fund merger (Note 1) Balance, end of period 176,503, ,759,640 39,126,840 89,276,527 8,429,132 11,262,199 (61,957,583) (65,795,214) 162,101, ,503,152 Brokerage commissions 2,865 4,431 Soft Dollar commissions Balance, beginning of period Units issued for cash Units issued for reinvested distributions (Note 6) Units redeemed Units issued on fund merger (Note 1) Balance, end of period 2,342,940 1,281,529 1,133,532 2,094, , ,906 (1,157,101) (1,164,401) 2,447,305 2,342,940 Schedule of Loss Carry Forwards Net capital loss carried forward March 31, 2007 Balance, beginning of period Units issued for cash Units issued for reinvested distributions (Note 6) Units redeemed Units issued on fund merger (Note 1) Balance, end of period 95,168,420 35,622,034 44,864,283 81,719,117 8,666,602 7,092,412 (24,556,377) (29,265,143) 124,142,928 95,168,420 Noncapital losses expiring: Total Schedule of Securities Lending (Note 5) Loaned Collateral (noncash) March 31, 2007 March 31, , , , ,435 Schedule of Fees (%) Annual management fee rate March 31, Paid directly by investor Annual fixed administration fee 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. 50

53 Notes to the Financial Statements CI Mutual Funds 1. THE FUNDS The following funds are openended mutual fund trusts created under the laws of Ontario by declarations of trust or share classes of a corporation incorporated under the laws of Ontario. CI Funds Inception Date of Units Inception Date of Units Inception Date of Units CI Alpine Growth Equity Fund* May 1, 1997 December 13, 1999 May 31, 2006 (Formerly Clarica Alpine Growth Equity Fund) CI American Equity Fund** May 25, 1989 July 17, 2000 July 31, 2001 (Formerly BPI American Equity Fund) CI American Small Companies Fund September 9, 1985 July 17, 2000 July 31, 2001 CI American Value Fund May 27, 1957 November 17, 2000 November 1, 1996 CI Canadian Asset Allocation Fund September 1, 1992 November 17, 2000 November 1, 1996 CI Canadian Bond Fund January 20, 1993 July 17, 2000 July 31, 2001 CI Canadian Investment Fund November 16, 1932 November 17, 2000 November 1, 1996 CI Canadian Small/Mid Cap Fund* November 1, 1992 December 13, 1999 June 20, 2005 (Formerly Clarica Canadian Small/Mid Cap Fund) CI Emerging Markets Fund September 10, 1991 July 17, 2000 July 31, 2001 CI European Fund September 10, 1991 July 31, 2001 May 25, 2004 CI Global Fund February 28, 1986 July 17, 2000 July 31, 2001 CI Global Bond Fund August 31, 1992 July 17, 2000 July 31, 2001 CI Global Small Companies Fund April 7, 1993 July 17, 2000 July 31, 2001 CI Global Value Fund June 12, 1996 July 17, 2000 July 31, 2001 CI International Balanced Fund September 29, 1994 July 17, 2000 July 31, 2001 CI International Fund August 5, 1999 July 17, 2000 August 29, 2003 CI International Value Fund June 12, 1996 July 31, 2001 July 31, 2001 CI LongTerm Bond Fund June 15, 1989 November 17, 2000 November 1, 1996 CI Money Market Fund October 1, 1990 July 31, 2001 July 31, 2001 CI Mortgage Fund* May 1, 1993 December 13, 1999 August 28, 2006 (Formerly Clarica Premier Mortgage Fund) CI Pacific Fund October 31, 1981 July 17, 2000 July 31, 2005 CI ShortTerm Bond Fund May 31, 1976 November 17, 2000 November 1, 1996 CI US Money Market Fund January 30, 1995 Portfolio Select Series Select Staging Fund November 7, 2005 November 7, 2005 Select Income Managed Fund November 27, 2006 Select Canadian Equity Managed Fund November 27, 2006 Select U.S. Equity Managed Fund November 27, 2006 Select International Equity Managed Fund November 27, 2006 Harbour Funds Harbour Fund June 27, 1997 July 17, 2000 July 31, 2001 Harbour Growth & Income Fund June 27, 1997 July 31, 2001 July 31, 2001 Signature Funds Signature Canadian Balanced Fund June 25, 1997 July 17, 2000 July 18, 2003 Signature Canadian Resource Fund April 11, 1997 July 31, 2001 Signature Corporate Bond Fund December 17, 2001 July 15, 2003 July 15, 2003 Signature Dividend Fund October 29, 1996 July 31, 2001 August 29, 2003 Signature Global Income & Growth Fund February 22, 2007 February 22, 2007 February 22, 2007 Signature High Income Fund December 18, 1996 July 31, 2001 August 28, 2002 Signature Income & Growth Fund October 14, 1994 July 31, 2001 March 29, 2005 Signature Select Canadian Fund May 13, 1998 July 17, 2000 July 31, 2001 Synergy Funds Synergy American Fund August 31, 1992 July 17, 2000 July 31, 2001 Synergy Focus Canadian Equity Fund*** (Formerly Synergy Extreme Canadian Equity Fund) April 10, 2000 November 13, 2000 _ Synergy Focus Global Equity Fund*** (Formerly Synergy Extreme Global Equity Fund) January 26, 2001 January 26, 2001 _ Synergy Tactical Asset Allocation Fund September 18, 1998 November 13, 2000 August 22,

54 Notes to the Financial Statements CI Mutual Funds THE FUNDS (cont d) Inception Date of Units Inception Date of Units Inception Date of Units Portfolio Series Funds Portfolio Series Balanced Fund**** (Formerly CI Canadian Balanced Portfolio) November 9, 1988 November 17, 2000 November 1, 1996 Portfolio Series Conservative Fund**** (Formerly CI Canadian Conservative Portfolio) December 1, 1997 November 17, 2000 December 1, 1997 Portfolio Series Income Fund**** (Formerly CI Canadian Income Portfolio) December 1, 1997 November 17, 2000 December 1, 1997 Portfolio Series Balanced Growth Fund**** (Formerly CI Global Balanced Portfolio) December 17, 2001 December 17, 2001 November 8, 2005 Portfolio Series Conservative Balanced Fund**** (Formerly CI Global Conservative Portfolio) December 17, 2001 December 17, 2001 October 31, 2005 Portfolio Series Growth Fund**** (Formerly CI Global Growth Portfolio) December 17, 2001 December 17, 2001 October 11, 2002 Portfolio Series Maximum Growth Fund**** (Formerly CI Global Maximum Growth Portfolio) December 17, 2001 December 17, 2001 October 31, 2005 *Name change effective June 20, **Name change effective November 28, ***Name change effective June 30, ****Name change effective July 12, The following Funds offered Insights units to investors commencing on July 15, CI American Value Fund CI Global Small Companies Fund CI Canadian Bond Fund CI International Fund CI Canadian Investment Fund CI International Value Fund CI Global Bond Fund Signature Corporate Bond Fund CI Global Fund Signature Select Canadian Fund CI Alpine Growth Equity Fund, CI Canadian Small/Mid Cap Fund and CI Mortgage Fund offered Class B units to investors commencing on December 13, Signature Dividend Fund offered Class X units and Class Y units to investors commencing August 29, Harbour Growth & Income Fund and Signature Dividend Fund offered Class Z units to investors commencing on August 29, Signature Select Canadian Fund and Signature Canadian Balanced Fund offered Class Z Units to investors commencing on August 2, CI Money Market Fund offered Class M units to investors commencing October 18, Select Staging Fund offered Class W units to investors commencing November 7, The Funds listed above changed their financial year end from December 31, 2005 to March 31, The date of inception of each Fund is shown above. units are available to all investors. and W units are available to certain investors including those who participate in feebased programs through their financial advisers or who are members of certain groups. and M units are available to institutional clients and investors who have entered into or M Account Agreements with CI Investments Inc. Insight units are issued to investors of the Insight Program, for use in feebased accounts. Class X, Class Y or Class Z units were issued to certain investors in connection with various mutual fund reorganizations and are generally only available for purchase by those investors. Effective as of close of business on July 29, 2005 the following funds were merged: Terminated Funds BPI American Equity RSP Fund Continuing Funds CI American Equity Fund (Formerly BPI American Equity Fund) (cont d) Terminated Funds Continuing Funds BPI Global Equity RSP Fund BPI Global Equity Fund BPI International Equity Fund CI International Fund CI American Managers RSP Fund CI American Managers BPI International Equity RSP Fund CI International RSP Fund Corporate Class CI American Small Companies RSP Fund CI American Small Companies Fund CI American Value RSP Fund CI American Value Corporate Class CI Canadian Small Cap Fund CI Canadian Small/Mid Cap Fund CI Asian Dynasty Fund CI Pacific Fund CI Emerging Markets RSP Fund CI Emerging Markets Fund CI European RSP Fund CI European Fund CI Global RSP Fund CI Global Fund CI Global Biotechnology RSP Fund CI Global Biotechnology Corporate Class CI Global Bond RSP Fund CI Global Bond Fund CI Global Boomernomics RSP Fund CI Global Boomernomics Corporate Class CI Global Consumer Products RSP Fund CI Global Consumer Products Corporate Class CI Global Energy RSP Fund CI Global Energy Corporate Class CI Global Financial Services RSP Fund CI Global Financial Services Corporate Class CI Global Health Sciences RSP Fund CI Global Health Sciences Corporate Class CI Global Managers RSP Fund CI Global Managers Corporate Class CI Global Small Companies RSP Fund CI Global Small Companies Fund CI Global Science & Technology RSP Fund CI Global Science & Technology Corporate Class CI Global Value RSP Fund CI Global Value Fund CI International Balanced RSP Fund CI International Balanced Fund CI International Value RSP Fund CI International Value Fund CI Japanese RSP Fund CI Japanese Corporate Class CI Pacific RSP Fund CI Pacific Fund CI Value Trust RSP Fund CI Value Trust Corporate Class Harbour Foreign Equity RSP Fund Harbour Foreign Equity Corporate Class Harbour Foreign Growth & Income RSP Fund Harbour Foreign Growth & Income Corporate Class CI Global Balanced RSP Portfolio CI Global Balanced Portfolio CI Global Conservative RSP Portfolio CI Global Conservative Portfolio CI Global Growth RSP Portfolio CI Global Growth Portfolio CI Global Maximum Growth RSP Portfolio CI Global Maximum Growth Portfolio 52

55 Notes to the Financial Statements CI Mutual Funds (cont d) Terminated Funds Clarica Premier Bond Fund Clarica Summit Dividend Growth Fund Clarica Canadian Blue Chip Fund Clarica Canadian Diversified Fund Clarica Summit Canadian Equity Fund Clarica Summit Growth & Income Fund Clarica Summit Foreign Equity Fund Clarica Canadian Equity Fund Clarica Premier International Fund Clarica US Small Cap Fund Synergy American RSP Fund Synergy Extreme Global Equity RSP Fund Synergy Global RSP Fund Synergy Global Style Management RSP Fund Continuing Funds CI Canadian Bond Fund Signature Select Canadian Fund Signature Select Canadian Fund Signature Canadian Balanced Fund Harbour Fund Harbour Growth & Income Fund Harbour Foreign Equity Corporate Class CI Canadian Investment Fund CI International Value Fund CI American Small Companies Fund Synergy American Fund Synergy Extreme Global Equity Fund Synergy Global Corporate Class Synergy Global Style Management Corporate Class The CI International RSP Fund merged into the CI International Fund effective as of the close of business on August 2, 2005 in order to accommodate the merger of the BPI International RSP Fund into the CI International RSP Fund. 2. SIGNIFICANT ACCOUNTING POLICIES These financial statements have been prepared in accordance with Canadian generally accepted accounting principles. The following is a summary of significant accounting policies of the Funds: (a) Valuation of Investments Listed securities are valued on each business day at their latest available closing price. In the absence of recorded sales on that day, they are valued at the average of the last recorded bid and ask prices where appropriate. Unlisted securities and share basket forwards are valued on each business day based on price quotations from recognized investment dealers, or failing that, management s best estimate of fair value. Warrants that are not listed are valued at their intrinsic value, based on management s best estimate. Private placements are valued at cost until new pricing information is available. Shortterm fixed income securities are valued at cost which, together with accrued interest, approximates market value. Mutual funds are valued on each business day at their closing net asset value. For Signature Global Income & Growth Fund, securities were revalued based on bid price for financial statement purposes, following the adoption of Section 3855, Financial Instruments: Recognition and Measurement. This applies to funds with fiscal years beginning on or after October 1, This did not impact the Fund's net asset value. Effective as of close of business on November 25, 2005 the following funds were merged: Terminated Funds Continuing Funds Signature Canadian Income Fund Signature Dividend Fund BPI Global Equity Fund CI Global Fund (b) Foreign Exchange Foreign currency amounts are translated into Canadian dollars as follows: market value of investments, forward currency contracts, other assets and liabilities at the closing rate of exchange on each business day; income, expenses and purchases, sales and settlements of investments at the rate of exchange prevailing on the respective dates of such transactions. Effective as of close of business on July 28, 2006 the following funds were merged. Terminated Funds CI Explorer Fund CI Canadian Growth Portfolio CI Canadian Maximum Growth Portfolio Continuing Funds CI American Small Companies Fund Portfolio Series Balanced Growth Fund (Formerly CI Global Balanced Portfolio) Portfolio Series Maximum Growth Fund (Formerly CI Global Maximum Growth Portfolio) The purchase method of accounting has been adopted for the merger of the Funds. Under this method, one of the Funds in each merger is identified as the acquiring Fund, and is known as the Continuing Fund, and the other Fund is known as the Terminated Fund. The mergers were effected by transferring the net assets of the Terminated Funds in exchange for securities of the Continuing Funds. The value of the securities of the Continuing Funds issued in connection with these mergers was equal to the market value of the net assets transferred from the Terminated Funds. The Terminated Funds are not included in these financial statements. (c) Investment Transactions and Income Recognition Investment transactions are accounted for on the trade date for financial reporting purposes and any realized gains and losses from such transactions are calculated on an average cost basis. For all Funds, except Signature Global Income & Growth Fund, transaction costs related to the purchases and sales of investments are included in the cost of purchases of investments or treated as a reduction of the proceeds from investments sold, respectively. For Signature Global Income & Growth Fund, transaction costs were expensed and included in Transaction costs in the Statement of Operations, in accordance with Section 3855, Financial Instruments: Recognition and Measurement, however, the amounts were nominal in the period. For share basket forwards, forward fees are accrued daily and included in the valuation of the share basket forward. Daily variation margin on derivative instruments is treated as a cash account reflecting the daily transfer of cash on the Statement of Net Assets. Realized gains and losses are not recognized until the contracts are settled. Dividend income and distributions from investments are recognized on the exdividend/ exdistribution date and interest income on the accrual basis. Terminated RSP funds were merged as a result of legislation eliminating the 30% foreign content limit. The Statement of Investment Portfolio and Schedule of Fees for each of the Funds are March 31, 2007 and the Statements of Net Assets and Schedule of Securities Lending are as at March 31, 2007 and March 31, The Statements of Operations, Changes in Net Assets, Schedule of Fund Unit Transactions and Schedule of Commissions for each Fund are for the year ended March 31, 2007 and for the period from January 1, 2005 to March 31, 2006, except for funds established during either period, in which case the information provided is for the period from inception to March 31, 2007 or to March 31, The Schedule of Loss Carry Forwards for each Fund are March 31, Distributions received from income trust holdings are recorded as income, capital gains or a return of capital, based on the best information available to the Manager. Due to the nature of these investments, actual allocations could vary from this information. Distributions from income trusts that are treated as a return of capital for income tax purposes reduce the average cost of the underlying investment trust on the Statement of Investments. Distributions received from investment fund holdings are recognized by the funds in the same form in which they were received from the underlying funds. (d) Net Asset Value Per Unit Net asset value per unit for each class is calculated at the end of each day on which the Toronto Stock Exchange is open for business by dividing the net assets of each class by its outstanding units. The net asset value of each class is computed by calculating the value 53

56 Notes to the Financial Statements CI Mutual Funds of that class s proportionate share of the Fund s assets less that class s proportionate share of the Fund s common liabilities and less class specific liabilities. Expenses directly attributable to a class are charged to that class. Other income and expenses are allocated to each class proportionately based upon the relative net asset value of each class. (e) Futures, Forward, Option and Swap Contracts Futures, forward, option and swap contracts are markedtomarket on each valuation day according to the gain or loss that would be realized if the contracts were closed out. All gains or losses arising from futures, forward, option and swap contracts are recorded as unrealized appreciation/depreciation of investments until the contracts are closed out or expire, at which time the gains (losses) are realized. (f) Short Selling Certain Funds have obtained relief from the required regulators to engage in short selling. When a Fund sells a security short, it will borrow that security from a broker to complete the sale. The Fund will incur a loss as a result of a short sale if the price of the borrowed security increases between the date of the short sale and the date on which the Fund closes out its short position by buying that security. The Fund will realize a gain if the security declines in price between those dates. The gain or loss that would be realized if, on the valuation date, the position were to be closed out is reflected in the Statements of Operations as part of Change in unrealized appreciation (depreciation) in value of investments and in the Statements of Net Assets in Investments sold short at market value. When the short position is closed out, gains and losses are realized and included in Net realized gain (loss) on sale of investments. (g) Increase (Decrease) in Net Assets from Operations per Unit per unit in the Statements of Operations is calculated by dividing the increase (decrease) in net assets from operations per class of the Fund by the weighted average number of units outstanding during the period for that class. (h) Use of Estimates The preparation of financial statements in accordance with Canadian generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the reporting date and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. (i) Comparatives Certain prior period amounts have been reclassified to conform to the current period s financial statement presentation. 3. INCOME TAXES The Funds qualify as mutual fund trusts under the provisions of the Income Tax Act (Canada) (with the exception of Signature Global Income & Growth Fund, which intends to qualify as a mutual fund trust by the time of filing these financial statements and Select Income Managed Fund, Select Canadian Equity Managed Fund, Select U.S. Equity Managed Fund and Select International Equity Managed Fund, which do not currently qualify as mutual fund trusts) and, accordingly, are not subject to tax on net income, including net realized 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 pay all net taxable income and sufficient net realized capital gains so that the Fund will not be subject to income tax. 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. Noncapital losses arising in taxation years up to 2003 may be carried forward seven years. Noncapital losses arising in taxation years 2004 and 2005 may be carried forward ten years. Noncapital losses arising in taxation years after 2005 may be carried forward twenty years. Refer to fund specific schedules in the financial statements for tax loss carried forward information. 4. MANAGEMENT FEES AND OTHER EXPENSES CI Investments Inc. is the Manager of each Fund and, in consideration of management fees, provides management services required in the daytoday operations of the Funds including management of the investment portfolios of the Funds. The management fee is calculated on the net assets of each Fund at the end of each business day. Prior to September 2005, each Fund was responsible for all operating and administrative expenses including audit and legal fees, registry and transfer agency fees, custody fees, expenses relating to reporting and making distributions to unitholders, all other costs and fees imposed by statute or regulation and expenses of all communications with unitholders. Effective September 2005, 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 (the Administration Fees ). Each Administration Fee is calculated as a fixed annual percentage of the net asset value of each class of the Fund 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. Prior to 2003, in order to reduce the effective Management Expense Ratios of certain funds some of the management fees and/or operating expenses may have been waived by the Manager. 5. SECURITIES LENDING Certain Funds have entered into a securities lending program with their custodian, RBC Dexia Investor Services Trust ("RBC Dexia"). The aggregate market value of all securities loaned by a Fund cannot exceed 50% of the net assets of the Fund. 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. RBC Dexia has indemnified the Funds against the credit risk of the borrowers. 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, 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 Statement of Net Asset in Cash collateral received for securities on loan or Payable for cash collateral under securites lending. 6. 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. The Manager may change the distribution policy at its discretion. Further information regarding reinvestment of distributions can be found in the funds Simplified Prospectus. 7. RELATED PARTY TRANSACTIONS Sun Life Financial Inc. ( Sun Life ) owns a significant interest in CI Financial Income Fund, the parent company of the Manager, and is therefore considered a related party to the Funds. Sun Life did not hold investments in the Funds at March 31, 2006 or March 31, SHORT SELLING AND DERIVATIVE RISKS There is no assurance that securities will decline in value during the period of the short sale sufficient to offset the interest paid by the mutual fund and make a profit for the mutual fund, and securities sold short may instead increase in value. The mutual fund may also experience difficulties repurchasing and returning the borrowed securities if a liquid market for the securities does not exist. The lender from whom the mutual fund has borrowed securities may go bankrupt and the mutual fund may lose the collateral it has deposited with the lender. 54

57 Notes to the Financial Statements CI Mutual Funds The use of derivatives comes with a number of risks. Hedging with derivatives may not always work and could restrict the Fund s ability to increase in value. There are no guarantees that a derivative contract can be obtained when needed, that the regulators may impose limits on trading of derivatives or that the other party to a derivative contract can honour the terms of the contract, thus preventing the Fund from making a profit or limiting a loss. The price of a derivative may not reflect the true value of the underlying security or if based on an index, could be distorted if some or all of the stocks included in the index stop trading. Derivatives traded on foreign markets may be harder to close than those traded in Canada. In some circumstances, investment dealer and futures brokers may hold some of the Fund s assets on deposit as collateral to a derivative contract, thus increasing risk because another party is responsible for the safekeeping of the assets. 9. FUTURE ACCOUNTING STANDARDS The Canadian Institute of Chartered Accountants ( CICA ) has issued Section 3855, Financial Instruments: Recognition and Measurement, effective for interim and annual financial statements relating to fiscal years beginning on or after October 1, The adoption of this section will impact the valuation and disclosure of the net asset value ( NAV ) of the Funds, and the way transaction costs are recorded for financial reporting purposes. Section 3855 requires that the fair value of financial instruments which are traded in active markets be measured based on the bid price for long securities and the ask price for securities sold short. Prior to this new section, the fair value was based on the last traded price for the day, when available. The impact of adopting the amended policy is not expected to be material to the financial statements. Section 3855 also requires that transaction costs, such as brokerage commissions, incurred in the purchases and sale of securities be charged to operating expenses under net income in the period. Prior to this new section, these costs have been added to the cost of the securities purchased or deducted from the proceeds of sale. Adoption of this policy is not expected to have a material impact to the financial statements and does not impact the daily price of the Funds. On April 1, 2007, except Signature Global Income & Growth Fund, the Funds adopted Section 3855 on a retrospective basis without restatement of prior year periods. The Canadian Securities Administrators have granted temporary relief to investment funds from complying with Section 3855, for the purpose of calculating and reporting of NAV (other than for financial reporting purposes) until September 30, 2007, to permit review of the suitability of these financial reporting requirements for purposes other than the financial statements, such as the purchase and redemption price of an investment fund. 55

58 About the CI Funds Board of Governors 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 of all CI Funds, providing impartial judgment on conflicts of interest with a view to the best interests of the CI Funds and CI Funds 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 CI 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 CI Funds for the purpose of reviewing the financial statements of the CI Funds with the auditors of the CI Funds and reviews holdings, purchases and sales by the CI Funds of securities of Sun Life Financial Inc. and CI Financial Income Fund. The Board also reviews and discusses on a regular basis matters including compliance of the CI Funds with CI s relevant policies and procedures, approval of the CI Funds auditors and the fees paid to those auditors, and the performance of the Board and its members. 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 CI Funds as part of their administration fee. During 2006 the members of the Board of Governors were: William Harding, Managing Partner, Alpine Asset Advisors AG Governor since June 2005 Stuart P. Hensman, Corporate Director Governor since December 2004 Stephen T. Moore, Managing Director, Newhaven Asset Management Inc. Governor since September 2001 Sharon M. Ranson, President, The Ranson Group Governor since December 2004 Further information regarding the Board is available at including the Board s full mandate. The Board of Governors adheres to the requirements set out by Canadian securities regulators in National Instrument Independent Review Committee for Investment Funds which requires all mutual funds in Canada to have independent review committees. Letter from the CI Funds Board of Governors Your CI Funds Board of Governors is pleased to report on its activities in respect of the period ended March 31, 2007 and to date. The Governors are appointed pursuant to the Declarations of Trust governing the CI Funds that are trusts, and constitute the board of directors of CI Corporate Class Limited. 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 CI Funds securityholders and that, at all times, the interests of the CI 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 CI 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 2006 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 CI Funds. During the period ended March 31, 2007, the Governors also acted as the audit committee of the CI Funds. The audit committee reviewed, with the CI Funds auditors, the planning, scope and results of the audit of the financial statements of the CI Funds for the period ended March 31, In May 2007, the Board of Governors received and accepted the Annual Financial Statements of the CI Funds for the period ended March 31, Stephen T. Moore Chair, CI Funds Board of Governors May 28,

59 Management and Audit Reports CI Mutual Funds MANAGEMENT S RESPONSIBILITY FOR FINANCIAL REPORTING The accompanying financial statements have been prepared by CI Investments Inc., the Manager of the Funds, and approved by the Board of Directors of the Manager. The Funds Manager is responsible for the information and representations contained in these financial statements and other sections of this report. CI Investments Inc. maintains appropriate processes to ensure that relevant and reliable financial information is produced. The financial statements have been prepared in accordance with accounting principles generally accepted in Canada and include certain amounts that are based on estimates and judgments. The significant accounting policies which management believes are appropriate for the Funds are described in Note 2 to the financial statements. Financial information provided elsewhere in this report is consistent with that in the financial statements. The Board of Directors is responsible for reviewing and approving the financial statements and overseeing the performance of its financial reporting responsibilities. They also review the adequacy of internal controls, the audit process and financial reporting with external auditors. PricewaterhouseCoopers LLP are the external auditors of the Funds. They have audited the financial statements in accordance with Canadian generally accepted auditing standards to enable them to express to the unitholders their opinion on the financial statements. Their audit report follows. AUDITORS REPORT To the unitholders of the CI Mutual Funds listed in Note 1 to the financial statements (the Funds ). We have audited the Statement of Investment Portfolio of each of the Funds March 31, 2007 and the Statements of Net Assets, Operations and Changes in Net Assets and for the periods indicated in Note 1. These financial statements are the responsibility of the Funds' management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with Canadian generally accepted auditing standards. Those standards require that we plan and perform an audit to obtain reasonable assurance whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. In our opinion, these financial statements present fairly, in all material respects, the financial position of each of the Funds, the results of each of their operations and the changes in each of their net assets and for the periods indicated in Note 1 in accordance with Canadian generally accepted accounting principles. Chief Executive Officer CI INVESTMENTS INC. Chief Financial Officer CI INVESTMENTS INC. PRICEWATERHOUSECOOPERS LLP Chartered Accountants Licensed Public Accountants Toronto, Ontario May 28,

60 Legal Notice Notice: Should you require additional copies of this 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. Simplified Prospectus: The Simplified Prospectus and Annual Information Form of a Fund are renewed annually. The Manager would be pleased to provide, without charge, the most recent Simplified Prospectus upon request to its Toronto office. 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. 58

61 Head Office 2 Queen Street East, Twentieth Floor Toronto, Ontario M5C 3G7 Tel: Toll Free: English Client Services Team: French Client Services Team: Sales Offices Calgary Tel: Toll Free: Halifax Tel: Toll Free: Montreal Tel: Toll Free: Vancouver Tel: Toll Free: CI Teleservice: Automated account information [email protected] SIGNATURE_AR_06/07E