Semi-Annual Financial Statements as at September 30, CI LifeCycle Portfolios

Transcription

1 SemiAnnual Financial Statements as at September 30, 2015 CI LifeCycle Portfolios

2 A look inside Overview... 1 About the CI Funds Board of Governors Letter from the CI Funds Board of Governors... 2 CI LifeCycle 2015 Portfolio... 3 CI LifeCycle 2020 Portfolio CI LifeCycle 2025 Portfolio CI LifeCycle 2030 Portfolio CI LifeCycle 2035 Portfolio CI LifeCycle 2040 Portfolio CI LifeCycle 2045 Portfolio CI LifeCycle 2050 Portfolio CI LifeCycle Income Portfolio Notes to the Financial Statements Legal Notice CI Investments Inc., the Manager of the Funds, appoints independent auditors to audit the Funds Annual Financial Statements. Under Canadian securities laws (National Instrument 81106), if an auditor has not reviewed the SemiAnnual Financial Statements, this must be disclosed in an accompanying notice. The Funds independent auditors have not performed a review of these SemiAnnual Financial Statements in accordance with standards established by the Canadian Institute of Chartered Accountants.

3 2 Queen Street East, Twentieth Floor Toronto, Ontario M5C 3G7 Telephone: Toll Free: Facsimile: Enclosed are the Financial Statements for your CI Investments mutual funds for the six months ending September 30, Inside is important information about each fund, including its financial statements for the period and a list of the portfolio holdings at the end of the period. Thank you for investing with us. CANADA S INVESTMENT COMPANY CI has been investing on behalf of Canadians since 1965 and has grown to become one of Canada s largest investment fund companies. We manage over $105 billion on behalf of two million Canadians. CI is a subsidiary of CI Financial Corp., a TSXlisted financial services firm with $139 billion in feeearning assets at September 30, CI provides one of the industry s widest selections of investment products and services and a strong lineup of leading portfolio management teams. Our portfolio management expertise is offered through several platforms, including mutual funds, taxefficient funds, guaranteed solutions, alternative investments, and managed solutions. SemiAnnual Financial Statements as at September 30,

4 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 the Funds, providing impartial judgment on conflicts of interest with a view to the best interests of the Funds and investors. The Board of Governors recommends the best course of action to achieve a fair and reasonable result on any conflict of interest issues, and CI takes into account its recommendation in accordance with its fiduciary duty to the Funds. All of the members of the Board are independent of CI. The Board of Governors are compensated as recommended by the Canadian securities regulators in their rule and as set out in its mandate. These expenses are paid by CI and charged to the Funds as part of their administration fee. The members of the Board of Governors are: William Harding, Managing Partner, Alpine Asset Advisors AG Governor since June 2005 The Board of Governors mandate is set out in a separate charter and reviewed annually by the Board to ensure its mandate conforms to the expectations and requirements of Canadian securities regulators. Along with dealing with conflicts of interest, the mandate provides that the Board acts as an audit committee for the Funds for the purpose of reviewing the financial statements of the Funds with the auditors of the Funds and reviews holdings, purchases and sales by the Funds of securities of CI Financial Corp. The Board also reviews and discusses on a regular basis matters including compliance of the Funds with CI s relevant policies and procedures, approval of the Funds auditors and the fees paid to those auditors, and the performance of the Board and its members. The Board of Governors adheres to the requirements set out by Canadian securities regulators in National Instrument Independent Review Committee for Investment Funds which requires all mutual funds in Canada to have independent review committees. Stuart P. Hensman, Corporate Director Governor since December 2004 Christopher M. Hopper, President, KLQ Mechanical Ltd. Governor since May 2007 John Reucassel, President, The International Group, Inc. Governor since March 2015 Mary M. Robertson, Managing Director, Financial Institution, Scotiabank Governor since September 2014 James M. Werry, Corporate Director Governor since September 2011 Further information regarding the Board is available at including the Board s full mandate. Letter from the CI Funds Board of Governors The CI Funds Board of Governors is pleased to report on its activities in respect of the semiannual period ended September 30, 2015 and to date. The Governors are appointed pursuant to the Declarations of Trust governing the Funds, and constitute the board of directors of CI Corporate Class Limited. The Governors have reviewed, commented on and approved the CI Personal Trading Policy, which establishes rules of conduct designed to ensure fair treatment of the Funds securityholders and that, at all times, the interests of the Funds and their securityholders are placed above personal interests of employees, officers and directors of the Manager and each of its subsidiaries and affiliates, the subadvisers, and the Governors, through the application of the highest standards of integrity and ethical business conduct. The CI Personal Trading Policy requires the prior clearance of personal trades and restricts the ability of staff to trade any securities held by the Funds. The objective is not only to remove any potential for real conflict of interest but to avoid any perception of conflict. The Manager s year 2014 report on compliance with the CI Personal Trading Policy and other relevant policies has been provided to the Governors in a timely and satisfactory manner. The Governors report that management has been open and cooperative, permitting the Governors to meet with subadvisers, to meet with individual department heads and personnel to review control mechanisms and compliance procedures, including those relating to the personal securities trading activity of employees, and to consider other matters that affect the Funds. During 2015, the Governors also acted as the audit committee of the Funds. The audit committee reviewed, with the Funds auditors, the planning, scope and results of the audit of the financial statements of the Funds for the year In November 2015, the Board of Governors received and accepted the SemiAnnual Financial Statements of the Funds. Stuart P. Hensman Chair, Board of Governors November 2015 SemiAnnual Financial Statements as at September 30,

5 CI Lifecycle 2015 Portfolio Financial Statements (unaudited) Statements of Financial Position (in $000 s except for per unit amounts and units outstanding) Statement of Comprehensive Income for the period ended September 30 (in $000 s except for per unit amounts and number of units) Assets Current assets Investments* Cash Unrealized gain on futures and foreign currency forward contracts Cash collateral received for securities on loan (Note 6) Daily variation margin on derivative instruments Fees rebate receivable Margin for short sales Dividends receivable Interest receivable Receivable for distribution from investments Security lending income receivable (Note 6) Receivable for investments sold Receivable for unit subscriptions Liabilities Current liabilities Investments sold short** Bank overdraft Unrealized loss on futures and foreign currency forward contracts Dividends payable on investments sold short Interest payable on investments sold short Payable for cash collateral under securities lending (Note 6) Payable for investments purchased Payable for unit redemptions Distributions payable to holders of redeemable units Management fees payable Administration fees payable Accrued liabilities Net assets attributable to holders of redeemable units *Investments at cost **Investments sold short at cost as at Sept. 30, 2015 as at Mar. 31, , , , , Income Net gain (loss) on investments and derivatives Dividends Interest for distribution purposes Income distributions from investments Capital gain distributions from investments Derivative income (loss) Interest expense on swaps Dividends expense on financial assets (liabilities) sold short Interest expense on financial assets (liabilities) sold short Net realized gain (loss) on sale of investments and derivatives Change in unrealized appreciation (depreciation) in value of investments and derivatives Total net gain (loss) on investments and derivatives Other income Foreign exchange gain (loss) on cash Commitment fee income Securities lending (Note 6) Fees rebate Total other income Total income Expenses Management fees (Note 5) Administration fees (Note 5) Commissions and other portfolio transaction costs Interest expense Withholding taxes Harmonized sales tax Total expenses Increase (decrease) in net assets attributable to holders of redeemable units Increase (decrease) in net assets attributable to holders of redeemable units per unit: Weighted average number of units: (149) (109) (5) (5) (114) 1 1 (115) (0.38) 296,498 Net assets attributable to holders of redeemable units per unit: Number of redeemable units outstanding: 610,148 1,000 SemiAnnual Financial Statements as at September 30, CIG 5553

6 CI Lifecycle 2015 Portfolio Financial Statements (unaudited) Statement of Changes in Net Assets Attributable to Holders of Redeemable Units for the period ended September 30 (in $000 s) Statement of Cash Flows for the period ended September 30 (in $000 s) Net assets attributable to holders of redeemable units at the beginning of period Increase (decrease) in net assets attributable to holders of redeemable units Distributions to holders of redeemable units From net investment income From net realized gains Return of capital Total distributions to holders of redeemable units Redeemable unit transactions Proceeds from redeemable units issued Reinvestment of distributions to holders of redeemable units Redemption of redeemable units Net increase (decrease) from redeemable unit transactions Net increase (decrease) in net assets attributable to holders of redeemable units Net assets attributable to holders of redeemable units at the end of period (115) 6,972 (624) 6,348 6,233 6,244 Cash flows from (used in) operating activities Increase (decrease) in net assets attributable to holders of redeemable units Adjustments for: Net realized (gain) loss on sale of investments and derivatives Unrealized foreign exchange (gain) loss on cash Commissions and other portfolio transaction costs Change in unrealized (appreciation) depreciation in value of investments and derivatives Proceeds from sale and maturity of investments Purchase of investments (Increase) decrease in margin for short sales Noncash distribution from investments (Increase) decrease in daily variation margin (Increase) decrease in dividends receivable (Increase) decrease in interest receivable (Increase) decrease in security lending income receivable Increase (decrease) in management fees payable Increase (decrease) in administration fees payable Change in other accounts receivable and payable Net cash from (used in) operating activities 2015 (115) (13) (7,132) (20) (2) (6,282) Cash flows from (used in) financing activities Distributions paid to holders of redeemable units, net of reinvested distributions Proceeds from issuance of redeemable units Amounts paid on redemption of redeemable units Net cash from (used in) financing activities 6,972 (624) 6,348 Unrealized foreign exchange gain (loss) on cash Net increase (decrease) in cash Cash (bank overdraft), beginning of period Cash (bank overdraft), end of period Supplementary Information: Dividends received, net of withholding tax* Interest received, net of withholding tax* Dividends paid* Interest paid* 5 *Dividends and interest received as well as dividends and interest paid relate to operating activities of the Fund. SemiAnnual Financial Statements as at September 30,

7 CI Lifecycle 2015 Portfolio Schedule of Investment Portfolio as at September 30, 2015 (unaudited) No. of Units Description Average Cost ($) Fair Value ($) FUNDS (73.5%) 10,913 Cambridge American Equity Corporate Class (I Shares) 205, ,814 17,837 Cambridge Pure Canadian Equity Fund () 390, ,725 7,512 CI American Value Corporate Class (I Shares) 214, ,942 3,602 CI CanAm Small Cap Corporate Class (I Shares) 83,053 78,205 7,825 CI Global Small Companies Corporate Class (I Shares) 156, ,685 8,937 CI International Value Corporate Class (I Shares) 134, ,989 17,016 Harbour Corporate Class (I Shares) 316, , ,205 Signature Canadian Bond Fund () 1,245,342 1,233,845 7,875 Signature Emerging Markets Corporate Class (I Shares) 109,480 99,698 66,917 Signature Global Bond Fund () 580, ,985 21,104 Signature High Yield Bond II Fund () 226, ,574 7,698 Signature International Corporate Class (I Shares) 161, ,411 18,723 Signature Select Canadian Corporate Class (I Shares) 370, ,561 36,271 Signature ShortTerm Bond Fund () 194, ,688 17,628 Synergy Canadian Corporate Class (I Shares) 314, ,738 4,703,692 4,591,505 EXCHANGETRADED FUNDS (25.4%) 6,582 BMO MSCI EAFE Hedged to CAD Index ETF 127, ,160 13,074 ishares DEX Long Term Bond Index Fund 312, ,239 20,192 ishares DEX Real Return Bond Index Fund 499, ,243 6,667 SPDR Barclays Capital Emerging Markets Local Bond ETF 226, ,692 5,209 SPDR Dow Jones Global Real Estate ETF 304, ,928 4,091 Vanguard S&P 500 Index ETF (CADHedged) 149, ,667 1,621,114 1,584,929 Commissions and other portfolio transaction costs (443) Total Investments (98.9%) 6,324,363 6,176,434 Other Net Assets (Liabilities) (1.1%) 67,248 Net Assets Attributable to Holders of Redeemable Units (100.0%) 6,243,682 The Fund invests in Underlying Funds. The Fund and the Underlying Funds are commonly managed by CI Investments Inc. Percentages shown in brackets relate investments at fair value to net assets attributable to holders of redeemable units of the Fund. SemiAnnual Financial Statements as at September 30,

8 CI Lifecycle 2015 Portfolio Financial Instruments by Category (Note 2) The following tables present the carrying amounts of the Fund s financial instruments by category: as at September 30, 2015 Assets Investments Cash Unrealized gain on futures and foreign currency forward contracts Cash collateral received for securities on loan Daily variation margin on derivative instruments Fees rebate receivable Margin for short sales Dividends receivable Interest receivable Receivable for distribution from investments Security lending income receivable Receivable for investments sold Receivable for unit subscriptions Liabilities Investments sold short Bank overdraft Unrealized loss on futures and foreign currency forward contracts Dividends payable on investments sold short Interest payable on investments sold short Payable for cash collateral under securities lending Payable for investments purchased Payable for unit redemptions Distributions payable to holders of redeemable units Management fees payable Administration fees payable Accrued liabilities Held for Trading Financial Assets/ Liabilities as FVTPL Designated at Inception Total Financial Assets/ Liabilities at Amortized Cost (in $000 s) (in $000 s) (in $000 s) (in $000 s) (in $000 s) Total 6,176 6,176 6, ,176 6, ,244 SemiAnnual Financial Statements as at September 30,

9 CI Lifecycle 2015 Portfolio Financial Instruments by Category (Note 2) (cont d) as at March 31, 2015 Assets Investments Cash Unrealized gain on futures and foreign currency forward contracts Cash collateral received for securities on loan Daily variation margin on derivative instruments Fees rebate receivable Margin for short sales Dividends receivable Interest receivable Receivable for distribution from investments Security lending income receivable Receivable for investments sold Receivable for unit subscriptions Liabilities Investments sold short Bank overdraft Unrealized loss on futures and foreign currency forward contracts Dividends payable on investments sold short Interest payable on investments sold short Payable for cash collateral under securities lending Payable for investments purchased Payable for unit redemptions Distributions payable to holders of redeemable units Management fees payable Administration fees payable Accrued liabilities Held for Trading Financial Assets/ Liabilities as FVTPL Designated at Inception Total Financial Assets/ Liabilities at Amortized Cost (in $000 s) (in $000 s) (in $000 s) (in $000 s) (in $000 s) Total SemiAnnual Financial Statements as at September 30,

10 CI Lifecycle 2015 Portfolio Net Gain (Loss) on Financial Instruments (Note 2) for the period ended September 30 (in $000 s) The following table presents the net gain (loss) on financial instruments at FVTPL by category Financial Instruments at FVTPL Held for trading Designated at fair value through profit or loss (109) Total (109) SemiAnnual Financial Statements as at September 30,

11 CI Lifecycle 2015 Portfolio Interest in NonConsolidated Structured Entities (Note 2) The following tables present the Fund s interest in NonConsolidated Structured Entities. as at September 30, 2015 Fair Value of the Underlying Funds / ETFs Fair Value of the Fund s Investment in the Underlying Funds / ETFs Ownership in the Underlying Funds / ETFs NonConsolidated Structured Entities (in $000 s) (in $000 s) (%) CI Global Small Companies Corporate Class 43, SPDR Barclays Capital Emerging Markets Local Bond ETF 71, Signature High Yield Bond II Fund 64, ishares DEX Long Term Bond Index Fund 169, Signature ShortTerm Bond Fund 119, ishares DEX Real Return Bond Index Fund 430, Cambridge Pure Canadian Equity Fund 257, Signature Canadian Bond Fund 3,229,360 1,233 Signature Global Bond Fund 1,353, Signature Select Canadian Corporate Class 1,566, SPDR Dow Jones Global Real Estate ETF 1,901, Harbour Corporate Class 1,304, Synergy Canadian Corporate Class 1,111, CI American Value Corporate Class 758, Cambridge American Equity Corporate Class 676, Signature International Corporate Class 460, Vanguard S&P 500 Index ETF (CADHedged) 34,580, CI International Value Corporate Class 480, BMO MSCI EAFE Hedged to CAD Index ETF 895, Signature Emerging Markets Corporate Class 323, CI CanAm Small Cap Corporate Class 196, as at March 31, 2015 Fair Value of the Underlying Funds / ETFs Fair Value of the Fund s Investment in the Underlying Funds / ETFs Ownership in the Underlying Funds / ETFs NonConsolidated Structured Entities (in $000 s) (in $000 s) (%) Signature Canadian Bond Fund 2,768,590 2 SPDR Dow Jones Global Real Estate ETF 2,077,042 1 Signature Select Canadian Corporate Class 1,754,685 1 Harbour Corporate Class 1,506,215 1 Synergy Canadian Corporate Class 1,264,814 1 Signature Global Bond Fund 1,202,456 1 Signature International Corporate Class 494,975 1 ishares DEX Real Return Bond Index Fund 451,150 1 Cambridge Pure Canadian Equity Fund 268,284 1 ishares DEX Long Term Bond Index Fund 155,558 1 Vanguard S&P 500 Index ETF 30,627,318 BMO MSCI EAFE Hedged to CAD Index ETF 815,272 CI American Value Corporate Class 804,253 Cambridge American Equity Corporate Class 681,729 CI International Value Corporate Class 504,101 Signature Emerging Markets Corporate Class 355,098 CI CanAm Small Cap Corporate Class 225,504 Signature ShortTerm Bond Fund 112,600 SPDR Barclays Capital Emerging Markets Local Bond ETF 100,825 Signature High Yield Bond II Fund 55,674 CI Global Small Companies Corporate Class 29,802 SemiAnnual Financial Statements as at September 30,

12 CI Lifecycle 2015 Portfolio Commissions (Note 2) for the period ended September 30 (in $000 s) Related Party Investments (Note 9) as at September 30 (in $000 s) Brokerage commissions Soft Dollar commissions Redeemable Unit Transactions (Note 4) for the period ended September 30 Number of redeemable units at the beginning of period Redeemable units issued for cash Redeemable units issued for reinvested distributions Redeemable units redeemed Number of redeemable units at the end of period , ,716 (58,568) 610,148 Investments 2015 Cambridge American Equity Corporate Class (I Shares) Cambridge Pure Canadian Equity Fund () CI American Value Corporate Class (I Shares) CI CanAm Small Cap Corporate Class (I Shares) CI Global Small Companies Corporate Class (I Shares) CI International Value Corporate Class (I Shares) Harbour Corporate Class (I Shares) Signature Canadian Bond Fund () Signature Emerging Markets Corporate Class (I Shares) Signature Global Bond Fund () Signature High Yield Bond II Fund () Signature International Corporate Class (I Shares) Signature Select Canadian Corporate Class (I Shares) Signature ShortTerm Bond Fund () Synergy Canadian Corporate Class (I Shares) , Management and Administration Fees (Note 5) as at September 30, 2015 (%) Annual management fee rate: Paid directly by investor Annual fixed administration fee rate: Securities Lending (Note 6) as at September 30 (in $000 s) Loaned Collateral (noncash) 2015 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. SemiAnnual Financial Statements as at September 30,

13 CI Lifecycle 2015 Portfolio Financial Instruments Risks (Note 11) Concentration Risk The Fund s investments were concentrated in the following Underlying Funds: as at September 30, 2015 Funds Net Assets (%) Signature Canadian Bond Fund () 19.7 Signature Global Bond Fund () 9.9 ishares DEX Real Return Bond Index Fund 7.8 Cambridge Pure Canadian Equity Fund () 5.8 Signature Select Canadian Corporate Class (I Shares) 5.6 SPDR Dow Jones Global Real Estate ETF 5.0 ishares DEX Long Term Bond Index Fund 4.9 Harbour Corporate Class (I Shares) 4.8 Synergy Canadian Corporate Class (I Shares) 4.8 SPDR Barclays Capital Emerging Markets Local Bond ETF 3.5 Signature High Yield Bond II Fund () 3.4 Cambridge American Equity Corporate Class (I Shares) 3.3 CI American Value Corporate Class (I Shares) 3.3 Signature ShortTerm Bond Fund () 3.1 CI Global Small Companies Corporate Class (I Shares) 2.5 Signature International Corporate Class (I Shares) 2.5 Vanguard S&P 500 Index ETF (CADHedged) 2.2 CI International Value Corporate Class (I Shares) 2.0 BMO MSCI EAFE Hedged to CAD Index ETF 1.9 Signature Emerging Markets Corporate Class (I Shares) 1.6 CI CanAm Small Cap Corporate Class (I Shares) 1.3 Other Net Assets (Liabilities) 1.1 as at March 31, 2015 Funds Net Assets (%) Signature Canadian Bond Fund () 18.3 Signature Global Bond Fund () 9.1 ishares DEX Real Return Bond Index Fund 8.0 ishares DEX Long Term Bond Index Fund 6.9 Cambridge Pure Canadian Equity Fund () 6.1 SPDR Dow Jones Global Real Estate ETF 5.9 Signature Select Canadian Corporate Class (I Shares) 5.9 Synergy Canadian Corporate Class (I Shares) 5.0 Harbour Corporate Class (I Shares) 4.9 Signature International Corporate Class (I Shares) 3.2 CI Global Small Companies Corporate Class (I Shares) 3.2 CI American Value Corporate Class (I Shares) 3.0 Cambridge American Equity Corporate Class (I Shares) 3.0 Signature High Yield Bond II Fund () 3.0 SPDR Barclays Capital Emerging Markets Local Bond ETF 2.9 CI International Value Corporate Class (I Shares) 2.2 BMO MSCI EAFE Hedged to CAD Index ETF 2.1 Signature Emerging Markets Corporate Class (I Shares) 2.1 Vanguard S&P 500 Index ETF (CADHedged) 1.7 Other Net Assets (Liabilities) 1.5 Signature ShortTerm Bond Fund () 1.0 CI CanAm Small Cap Corporate Class (I Shares) 1.0 During the sixmonth period ended September 30, 2015, the Fund s other price risk and currency risk exposure changed significantly as disclosed in the section below. For details relating to credit risk, interest rate risk and fair value hierarchy, refer to the audited annual financial statements as at March 31, 2015, as the Fund s exposure to those risks remains unchanged. Other Price Risk As at September 30, 2015 and March 31, 2015, the Fund indirectly bears the other price risk exposure of the Underlying Funds. As at September 30, 2015, had global markets increased or decreased by 10% (March 31, %), with all other variables held constant, net assets attributable to holders of redeemable units of the Fund would have increased or decreased, respectively, by approximately $316,000 (March 31, 2015 $1,000). In practice, actual results may differ from this analysis and the difference may be material. Currency Risk The tables below summarize the Fund s exposure to currency risk. as at September 30, 2015 ~ Financial Instruments Exposure Derivatives Total Net Assets Currency (in $000 s) (in $000 s) (in $000 s) (%) US Dollar Total as at March 31, 2015 ~ Financial Instruments Exposure Derivatives Total Net Assets Currency (in $000 s) (in $000 s) (in $000 s) (%) US Dollar Total ~ Includes monetary and nonmonetary instruments. As at September 30, 2015, had the Canadian dollar strengthened or weakened by 10% (March 31, %) in relation to all other foreign currencies held in the Fund, with all other variables held constant, net assets attributable to holders of redeemable units of the Fund would have decreased or increased, respectively, by approximately $53,000 (March 31, 2015 a nominal amount). In practice, actual results may differ from this analysis and the difference may be material. SemiAnnual Financial Statements as at September 30,

14 CI LifeCycle 2020 Portfolio Financial Statements (unaudited) Statements of Financial Position (in $000 s except for per unit amounts and units outstanding) Statements of Comprehensive Income for the periods ended September 30 (in $000 s except for per unit amounts and number of units) Assets Current assets Investments* Cash Unrealized gain on futures and foreign currency forward contracts Cash collateral received for securities on loan (Note 6) Daily variation margin on derivative instruments Fees rebate receivable Margin for short sales Dividends receivable Interest receivable Receivable for distribution from investments Security lending income receivable (Note 6) Receivable for investments sold Receivable for unit subscriptions Liabilities Current liabilities Investments sold short** Bank overdraft Unrealized loss on futures and foreign currency forward contracts Dividends payable on investments sold short Interest payable on investments sold short Payable for cash collateral under securities lending (Note 6) Payable for investments purchased Payable for unit redemptions Distributions payable to holders of redeemable units Management fees payable Administration fees payable Accrued liabilities Net assets attributable to holders of redeemable units *Investments at cost **Investments sold short at cost as at Sept. 30, 2015 as at Mar. 31, ,029 33, , ,540 57,523 23, ,360 41,462 34,163 42,399 32,602 Income Net gain (loss) on investments and derivatives Dividends Interest for distribution purposes Income distributions from investments Capital gain distributions from investments Derivative income (loss) Interest expense on swaps Dividends expense on financial assets (liabilities) sold short Interest expense on financial assets (liabilities) sold short Net realized gain (loss) on sale of investments and derivatives Change in unrealized appreciation (depreciation) in value of investments and derivatives Total net gain (loss) on investments and derivatives Other income Foreign exchange gain (loss) on cash Commitment fee income Securities lending (Note 6) Fees rebate Total other income Total income Expenses Management fees (Note 5) Administration fees (Note 5) Commissions and other portfolio transaction costs Interest expense Withholding taxes Harmonized sales tax Total expenses Increase (decrease) in net assets attributable to holders of redeemable units Increase (decrease) in net assets attributable to holders of redeemable units per unit: Weighted average number of units: (2,090) 132 (1,773) 187 (4) (4) (1,777) (1,784) 187 (0.66) ,722, ,020 Net assets attributable to holders of redeemable units per unit: Number of redeemable units outstanding: 3,020,025 2,378,720 SemiAnnual Financial Statements as at September 30, CIG 5554

15 CI LifeCycle 2020 Portfolio Financial Statements (unaudited) Statements of Changes in Net Assets Attributable to Holders of Redeemable Units for the periods ended September 30 (in $000 s) Statements of Cash Flows for the periods ended September 30 (in $000 s) Net assets attributable to holders of redeemable units at the beginning of period Increase (decrease) in net assets attributable to holders of redeemable units Distributions to holders of redeemable units From net investment income From net realized gains Return of capital Total distributions to holders of redeemable units Redeemable unit transactions Proceeds from redeemable units issued Reinvestment of distributions to holders of redeemable units Redemption of redeemable units Net increase (decrease) from redeemable unit transactions Net increase (decrease) in net assets attributable to holders of redeemable units Net assets attributable to holders of redeemable units at the end of period 34,163 4,946 (1,784) , (1,824) (337) 9,083 (52) 7, ,462 5,081 Cash flows from (used in) operating activities Increase (decrease) in net assets attributable to holders of redeemable units Adjustments for: Net realized (gain) loss on sale of investments and derivatives Unrealized foreign exchange (gain) loss on cash Commissions and other portfolio transaction costs Change in unrealized (appreciation) depreciation in value of investments and derivatives Proceeds from sale and maturity of investments Purchase of investments (Increase) decrease in margin for short sales Noncash distribution from investments (Increase) decrease in daily variation margin (Increase) decrease in dividends receivable (Increase) decrease in interest receivable (Increase) decrease in security lending income receivable Increase (decrease) in management fees payable Increase (decrease) in administration fees payable Change in other accounts receivable and payable Net cash from (used in) operating activities (1,784) 187 (47) (22) 5 2,090 (132) 1, (34,875) (174) (143) (17) (9) (2) (32,860) 187 Cash flows from (used in) financing activities Distributions paid to holders of redeemable units, net of reinvested distributions Proceeds from issuance of redeemable units Amounts paid on redemption of redeemable units Net cash from (used in) financing activities 11, (1,746) (337) 9,371 (52) Unrealized foreign exchange gain (loss) on cash Net increase (decrease) in cash Cash (bank overdraft), beginning of period Cash (bank overdraft), end of period (23,489) , Supplementary Information: Dividends received, net of withholding tax* Interest received, net of withholding tax* Dividends paid* Interest paid* *Dividends and interest received as well as dividends and interest paid relate to operating activities of the Fund. SemiAnnual Financial Statements as at September 30,

16 CI LifeCycle 2020 Portfolio Schedule of Investment Portfolio as at September 30, 2015 (unaudited) No. of Units Description Average Cost ($) Fair Value ($) FUNDS (72.6%) 102,159 Cambridge American Equity Corporate Class (I Shares) 1,892,903 1,926, ,600 Cambridge Pure Canadian Equity Fund () 3,139,640 2,973,045 65,716 CI American Value Corporate Class (I Shares) 1,833,658 1,819,013 33,381 CI CanAm Small Cap Corporate Class (I Shares) 778, ,711 90,040 CI Global Small Companies Corporate Class (I Shares) 1,733,236 1,768,395 90,938 CI International Value Corporate Class (I Shares) 1,331,745 1,292, ,308 Harbour Corporate Class (I Shares) 2,719,609 2,558, ,908 Signature Canadian Bond Fund () 5,167,477 5,075,558 76,518 Signature Emerging Markets Corporate Class (I Shares) 1,072, , ,481 Signature Global Bond Fund () 2,379,777 2,520, ,645 Signature High Yield Bond II Fund () 1,414,734 1,342,370 81,608 Signature International Corporate Class (I Shares) 1,702,444 1,626, ,296 Signature Select Canadian Corporate Class (I Shares) 3,117,842 2,930, ,549 Synergy Canadian Corporate Class (I Shares) 2,660,690 2,542,778 30,944,611 30,069,371 EXCHANGETRADED FUNDS (26.4%) 59,174 BMO MSCI EAFE Hedged to CAD Index ETF 1,164,909 1,053, ,599 ishares DEX Long Term Bond Index Fund 4,192,920 4,032,576 94,433 ishares DEX Real Return Bond Index Fund 2,389,747 2,283,390 41,864 SPDR Barclays Capital Emerging Markets Local Bond ETF 1,432,461 1,373,231 18,202 SPDR Dow Jones Global Real Estate ETF 1,097,505 1,096,968 32,804 Vanguard S&P 500 Index ETF (CADHedged)* 1,186,250 1,119,929 11,463,792 10,959,391 Commissions and other portfolio transaction costs (9,583) Total Investments (99.0%) 42,398,820 41,028,762 Other Net Assets (Liabilities) (1.0%) 433,309 Net Assets Attributable to Holders of Redeemable Units (100.0%) 41,462,071 *Denotes all or part of securities on loan. The Fund invests in Underlying Funds. The Fund and the Underlying Funds are commonly managed by CI Investments Inc. Percentages shown in brackets relate investments at fair value to net assets attributable to holders of redeemable units of the Fund. SemiAnnual Financial Statements as at September 30,

17 CI LifeCycle 2020 Portfolio Financial Instruments by Category (Note 2) The following tables present the carrying amounts of the Fund s financial instruments by category: as at September 30, 2015 Assets Investments Cash Unrealized gain on futures and foreign currency forward contracts Cash collateral received for securities on loan Daily variation margin on derivative instruments Fees rebate receivable Margin for short sales Dividends receivable Interest receivable Receivable for distribution from investments Security lending income receivable Receivable for investments sold Receivable for unit subscriptions Liabilities Investments sold short Bank overdraft Unrealized loss on futures and foreign currency forward contracts Dividends payable on investments sold short Interest payable on investments sold short Payable for cash collateral under securities lending Payable for investments purchased Payable for unit redemptions Distributions payable to holders of redeemable units Management fees payable Administration fees payable Accrued liabilities Held for Trading Financial Assets/ Liabilities as FVTPL Designated at Inception Total Financial Assets/ Liabilities at Amortized Cost (in $000 s) (in $000 s) (in $000 s) (in $000 s) (in $000 s) Total 41,029 41,029 41, ,029 41, , SemiAnnual Financial Statements as at September 30,

18 CI LifeCycle 2020 Portfolio Financial Instruments by Category (Note 2) (cont d) as at March 31, 2015 Assets Investments Cash Unrealized gain on futures and foreign currency forward contracts Cash collateral received for securities on loan Daily variation margin on derivative instruments Fees rebate receivable Margin for short sales Dividends receivable Interest receivable Receivable for distribution from investments Security lending income receivable Receivable for investments sold Receivable for unit subscriptions Liabilities Investments sold short Bank overdraft Unrealized loss on futures and foreign currency forward contracts Dividends payable on investments sold short Interest payable on investments sold short Payable for cash collateral under securities lending Payable for investments purchased Payable for unit redemptions Distributions payable to holders of redeemable units Management fees payable Administration fees payable Accrued liabilities Held for Trading Financial Assets/ Liabilities as FVTPL Designated at Inception Total Financial Assets/ Liabilities at Amortized Cost (in $000 s) (in $000 s) (in $000 s) (in $000 s) (in $000 s) Total 33,322 33,322 33,322 23,989 23, ,322 33,322 24,201 57,523 23,360 23,360 23,360 23,360 SemiAnnual Financial Statements as at September 30,

19 CI LifeCycle 2020 Portfolio Net Gain (Loss) on Financial Instruments (Note 2) for the periods ended September 30 (in $000 s) The following table presents the net gain (loss) on financial instruments at FVTPL by category. Financial Instruments at FVTPL Held for trading Designated at fair value through profit or loss (1,773) 187 Total (1,773) 187 SemiAnnual Financial Statements as at September 30,

20 CI LifeCycle 2020 Portfolio Interest in NonConsolidated Structured Entities (Note 2) The following tables present the Fund s interest in NonConsolidated Structured Entities. as at September 30, 2015 Fair Value of the Underlying Funds / ETFs Fair Value of the Fund s Investment in the Underlying Funds / ETFs Ownership in the Underlying Funds / ETFs NonConsolidated Structured Entities (in $000 s) (in $000 s) (%) CI Global Small Companies Corporate Class 43,027 1, ishares DEX Long Term Bond Index Fund 169,200 4, Signature High Yield Bond II Fund 64,639 1, SPDR Barclays Capital Emerging Markets Local Bond ETF 71,282 1, Cambridge Pure Canadian Equity Fund 257,045 2, ishares DEX Real Return Bond Index Fund 430,404 2, Signature International Corporate Class 460,287 1, CI CanAm Small Cap Corporate Class 196, Cambridge American Equity Corporate Class 676,672 1, CI International Value Corporate Class 480,219 1, Signature Emerging Markets Corporate Class 323, Signature Canadian Bond Fund 3,229,360 5, Signature Select Canadian Corporate Class 1,566,935 2, Harbour Corporate Class 1,304,072 2, Synergy Canadian Corporate Class 1,111,829 2, Signature Global Bond Fund 1,353,967 2, CI American Value Corporate Class 758,400 1, SPDR Dow Jones Global Real Estate ETF 1,901,236 1, BMO MSCI EAFE Hedged to CAD Index ETF 895,340 1, Vanguard S&P 500 Index ETF (CADHedged) 34,580,607 1,120 as at March 31, 2015 Fair Value of the Underlying Funds / ETFs Fair Value of the Fund s Investment in the Underlying Funds / ETFs Ownership in the Underlying Funds / ETFs NonConsolidated Structured Entities (in $000 s) (in $000 s) (%) CI Global Small Companies Corporate Class 29,802 1, ishares DEX Long Term Bond Index Fund 155,558 3, Signature High Yield Bond II Fund 55,674 1, SPDR Barclays Capital Emerging Markets Local Bond ETF 100,825 1, Cambridge Pure Canadian Equity Fund 268,284 2, ishares DEX Real Return Bond Index Fund 451,150 1, Signature International Corporate Class 494,975 1, CI CanAm Small Cap Corporate Class 225, Synergy Canadian Corporate Class 1,264,814 2, Signature Global Bond Fund 1,202,456 1, Cambridge American Equity Corporate Class 681,729 1, CI American Value Corporate Class 804,253 1, CI International Value Corporate Class 504,101 1, Signature Emerging Markets Corporate Class 355, Signature Canadian Bond Fund 2,768,590 3, Signature Select Canadian Corporate Class 1,754,685 2, Harbour Corporate Class 1,506,215 2, BMO MSCI EAFE Hedged to CAD Index ETF 815, SPDR Dow Jones Global Real Estate ETF 2,077, Vanguard S&P 500 Index ETF 30,627, SemiAnnual Financial Statements as at September 30,

21 CI LifeCycle 2020 Portfolio Commissions (Note 2) for the periods ended September 30 (in $000 s) Related Party Investments (Note 9) as at September 30 (in $000 s) Brokerage commissions Soft Dollar commissions Redeemable Unit Transactions (Note 4) for the periods ended September 30 Number of redeemable units at the beginning of period Redeemable units issued for cash Redeemable units issued for reinvested distributions Redeemable units redeemed Number of redeemable units at the end of period 5 2,378, , ,117 21,487 (127,812) (25,958) 3,020, ,024 Investments Cambridge American Equity Corporate Class (I Shares) Cambridge Pure Canadian Equity Fund () CI American Value Corporate Class (I Shares) CI CanAm Small Cap Corporate Class (I Shares) CI Global Small Companies Corporate Class (I Shares) CI International Value Corporate Class (I Shares) Harbour Corporate Class (I Shares) Signature Canadian Bond Fund () Signature Emerging Markets Corporate Class (I Shares) Signature Global Bond Fund () Signature High Yield Bond II Fund () Signature International Corporate Class (I Shares) Signature Select Canadian Corporate Class (I Shares) Synergy Canadian Corporate Class (I Shares) 1, , , , , , , , , , , , Management and Administration Fees (Note 5) as at September 30, 2015 (%) Annual management fee rate: Paid directly by investor Annual fixed administration fee rate: Securities Lending (Note 6) as at September 30 (in $000 s) Loaned Collateral (noncash) 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. SemiAnnual Financial Statements as at September 30,

22 CI LifeCycle 2020 Portfolio Financial Instruments Risks (Note 11) Concentration Risk The Fund s investments were concentrated in the following Underlying Funds: as at September 30, 2015 Funds Net Assets (%) Signature Canadian Bond Fund () 12.5 ishares DEX Long Term Bond Index Fund 9.7 Cambridge Pure Canadian Equity Fund () 7.2 Signature Select Canadian Corporate Class (I Shares) 7.1 Harbour Corporate Class (I Shares) 6.2 Signature Global Bond Fund () 6.1 Synergy Canadian Corporate Class (I Shares) 6.1 ishares DEX Real Return Bond Index Fund 5.5 Cambridge American Equity Corporate Class (I Shares) 4.6 CI American Value Corporate Class (I Shares) 4.4 CI Global Small Companies Corporate Class (I Shares) 4.3 Signature International Corporate Class (I Shares) 3.9 SPDR Barclays Capital Emerging Markets Local Bond ETF 3.3 Signature High Yield Bond II Fund () 3.2 CI International Value Corporate Class (I Shares) 3.1 Vanguard S&P 500 Index ETF (CADHedged) 2.7 SPDR Dow Jones Global Real Estate ETF 2.6 BMO MSCI EAFE Hedged to CAD Index ETF 2.5 Signature Emerging Markets Corporate Class (I Shares) 2.3 CI CanAm Small Cap Corporate Class (I Shares) 1.7 Other Net Assets (Liabilities) 1.0 as at March 31, 2015 Funds Net Assets (%) Signature Canadian Bond Fund () 11.2 ishares DEX Long Term Bond Index Fund 9.6 Cambridge Pure Canadian Equity Fund () 7.2 Signature Select Canadian Corporate Class (I Shares) 7.1 Synergy Canadian Corporate Class (I Shares) 6.2 Harbour Corporate Class (I Shares) 6.2 Signature Global Bond Fund () 5.7 ishares DEX Real Return Bond Index Fund 5.2 Cambridge American Equity Corporate Class (I Shares) 4.8 CI American Value Corporate Class (I Shares) 4.5 CI Global Small Companies Corporate Class (I Shares) 4.4 Signature International Corporate Class (I Shares) 4.0 CI International Value Corporate Class (I Shares) 3.1 Signature High Yield Bond Fund () 3.1 SPDR Barclays Capital Emerging Markets Local Bond ETF 3.1 SPDR Dow Jones Global Real Estate ETF 2.7 Vanguard S&P 500 Index ETF (CADHedged) 2.7 BMO MSCI EAFE Hedged to CAD Index ETF 2.5 Other Net Assets (Liabilities) 2.5 Signature Emerging Markets Corporate Class (I Shares) 2.4 CI CanAm Small Cap Corporate Class (I Shares) 1.8 During the sixmonth period ended September 30, 2015, the Fund s currency risk exposure changed significantly as disclosed in the section below. For details relating to credit risk, other price risk, interest rate risk and fair value hierarchy, refer to the audited annual financial statements as at March 31, 2015, as the Fund s exposure to those risks remains unchanged. Currency Risk The tables below summarize the Fund s exposure to currency risk. as at September 30, 2015 ~ Financial Instruments Exposure Derivatives Total Net Assets Currency (in $000 s) (in $000 s) (in $000 s) (%) US Dollar 2,482 2, Total 2,482 2, as at March 31, 2015 ~ Financial Instruments Exposure Derivatives Total Net Assets Currency (in $000 s) (in $000 s) (in $000 s) (%) US Dollar Total ~ Includes monetary and nonmonetary instruments. As at September 30, 2015, had the Canadian dollar strengthened or weakened by 10% (March 31, %) in relation to all other foreign currencies held in the Fund, with all other variables held constant, net assets attributable to holders of redeemable units of the Fund would have decreased or increased, respectively, by approximately $248,000 (March 31, 2015 $53,000). In practice, actual results may differ from this analysis and the difference may be material. SemiAnnual Financial Statements as at September 30,

23 CI LifeCycle 2025 Portfolio Financial Statements (unaudited) Statements of Financial Position (in $000 s except for per unit amounts and units outstanding) Statements of Comprehensive Income for the periods ended September 30 (in $000 s except for per unit amounts and number of units) Assets Current assets Investments* Cash Unrealized gain on futures and foreign currency forward contracts Cash collateral received for securities on loan (Note 6) Daily variation margin on derivative instruments Fees rebate receivable Margin for short sales Dividends receivable Interest receivable Receivable for distribution from investments Security lending income receivable (Note 6) Receivable for investments sold Receivable for unit subscriptions Liabilities Current liabilities Investments sold short** Bank overdraft Unrealized loss on futures and foreign currency forward contracts Dividends payable on investments sold short Interest payable on investments sold short Payable for cash collateral under securities lending (Note 6) Payable for investments purchased Payable for unit redemptions Distributions payable to holders of redeemable units Management fees payable Administration fees payable Accrued liabilities Net assets attributable to holders of redeemable units *Investments at cost **Investments sold short at cost as at Sept. 30, 2015 as at Mar. 31, ,477 47, , ,149 84,866 36, ,479 53,134 48,387 54,817 47,298 Income Net gain (loss) on investments and derivatives Dividends Interest for distribution purposes Income distributions from investments Capital gain distributions from investments Derivative income (loss) Interest expense on swaps Dividends expense on financial assets (liabilities) sold short Interest expense on financial assets (liabilities) sold short Net realized gain (loss) on sale of investments and derivatives Change in unrealized appreciation (depreciation) in value of investments and derivatives Total net gain (loss) on investments and derivatives Other income Foreign exchange gain (loss) on cash Commitment fee income Securities lending (Note 6) Fees rebate Total other income Total income Expenses Management fees (Note 5) Administration fees (Note 5) Commissions and other portfolio transaction costs Interest expense Withholding taxes Harmonized sales tax Total expenses Increase (decrease) in net assets attributable to holders of redeemable units Increase (decrease) in net assets attributable to holders of redeemable units per unit: Weighted average number of units: (12) 4 (2,953) 145 (2,687) 173 (1) 3 2 (2,685) (2,687) 173 (0.76) ,535, ,172 Net assets attributable to holders of redeemable units per unit: Number of redeemable units outstanding: 3,764,570 3,258,239 SemiAnnual Financial Statements as at September 30, CIG 5555

24 CI LifeCycle 2025 Portfolio Financial Statements (unaudited) Statements of Changes in Net Assets Attributable to Holders of Redeemable Units for the periods ended September 30 (in $000 s) Statements of Cash Flows for the periods ended September 30 (in $000 s) Net assets attributable to holders of redeemable units at the beginning of period Increase (decrease) in net assets attributable to holders of redeemable units Distributions to holders of redeemable units From net investment income From net realized gains Return of capital Total distributions to holders of redeemable units Redeemable unit transactions Proceeds from redeemable units issued Reinvestment of distributions to holders of redeemable units Redemption of redeemable units Net increase (decrease) from redeemable unit transactions Net increase (decrease) in net assets attributable to holders of redeemable units Net assets attributable to holders of redeemable units at the end of period 48,387 4,352 (2,687) 173 8, (1,504) (236) 7, , ,134 4,651 Cash flows from (used in) operating activities Increase (decrease) in net assets attributable to holders of redeemable units Adjustments for: Net realized (gain) loss on sale of investments and derivatives Unrealized foreign exchange (gain) loss on cash Commissions and other portfolio transaction costs Change in unrealized (appreciation) depreciation in value of investments and derivatives Proceeds from sale and maturity of investments Purchase of investments (Increase) decrease in margin for short sales Noncash distribution from investments (Increase) decrease in daily variation margin (Increase) decrease in dividends receivable (Increase) decrease in interest receivable (Increase) decrease in security lending income receivable Increase (decrease) in management fees payable Increase (decrease) in administration fees payable Change in other accounts receivable and payable Net cash from (used in) operating activities (2,687) (4) 2 2,953 (145) 1, (45,744) (247) (112) (9) (12) (1) (43,744) (111) Cash flows from (used in) financing activities Distributions paid to holders of redeemable units, net of reinvested distributions Proceeds from issuance of redeemable units Amounts paid on redemption of redeemable units Net cash from (used in) financing activities 9, (1,489) (236) 7, Unrealized foreign exchange gain (loss) on cash Net increase (decrease) in cash Cash (bank overdraft), beginning of period Cash (bank overdraft), end of period (36,129) 15 36, Supplementary Information: Dividends received, net of withholding tax* Interest received, net of withholding tax* Dividends paid* Interest paid* *Dividends and interest received as well as dividends and interest paid relate to operating activities of the Fund. SemiAnnual Financial Statements as at September 30,