2009 Semi-Annual Financial Statement – as at September 30 ... · PDF fileThese financial...

2009 Semi-Annual Financial Statement – as at September 30, 2009

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

About the CI Funds Board of Governors and

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

Equity Funds

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

Balanced Funds

Synergy Tactical Asset Allocation Fund .......................................................................................8

Notes to the Financial Statements ......................................................................................16

Legal Notice ...........................................................................................................................22

CI Investments Inc., the manager of the Funds, appoints independent auditors to audit the

Funds’ Annual Financial Statements. Under Canadian securities laws (National Instrument

81-106), if an auditor has not reviewed the Semi-Annual Financial Statements, this must be

disclosed in an accompanying notice.

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

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

Accountants.

A look inside

– 1 –

Enclosed are the Financial Statements for your CI Investments

mutual funds for the six months ending September 30, 2009.

These financial statements also include a complete list of portfolio

holdings for each fund.

Additional information about your funds can be found on our website,

www.ci.com.

If you have any questions about your investments, please contact your

financial advisor. CI is proud to partner with advisors across Canada.

We believe investors are most successful when they follow an

investment plan developed with the assistance of a qualified advisor.

You may also contact CI Client Services at 1-800-792-9355.

Thank you for investing with us.

ABOUT CI INVESTMENTS

CI has been investing on behalf of Canadians since 1965 and has

grown to become one of Canada’s largest investment fund companies.

We manage over $53 billion on behalf of two million Canadians.

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

services firm with over $93.8 billion in fee-earning assets at

September 30, 2009.

CI provides one of the industry’s widest selections of investment

products and services and a strong lineup of leading portfolio

management teams. Our portfolio management expertise is offered

through several platforms, including mutual funds, tax-efficient funds,

segregated funds, and managed solutions.

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

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

– 2 –

The CI Funds Board of Governors was voluntarily established by CI in 1998 making it one of the first

such fund governance bodies in Canada.

The Board of Governors acts as an independent governance body the Funds, providing impartial

judgment on conflicts of interest with a view to the best interests of the Funds and investors. The Board

of Governors recommends the best course of action to achieve a fair and reasonable result on any

conflict of interest issues, and CI takes into account its recommendation in accordance with its fiduciary

duty to the Funds. All of the members of the Board are independent of CI.

The Board of Governors mandate is set out in a separate charter and reviewed annually by

the Board to ensure its mandate conforms to the expectations and requirements of Canadian

securities regulators. Along with dealing with conflicts of interest, the mandate provides that the

Board acts as an audit committee for the Funds for the purpose of reviewing the financial statements

of the Funds with the auditors of the Funds and reviews holdings, purchases and sales by the Funds

of securities of The Bank of Nova Scotia and CI Financial Corp.

The Board also reviews and discusses on a regular basis matters including compliance of the Funds

with CI’s relevant policies and procedures, approval of the Funds’ auditors and the fees paid to those

auditors, and the performance of the Board and its members.

The Board of Governors adheres to the requirements set out by Canadian securities regulators in

National Instrument 81-107 Independent Review Committee for Investment Funds which requires all

mutual funds in Canada to have independent review committees.

The Board of Governors are compensated as recommended by the Canadian securities regulators in

their rule and as set out in its mandate. These expenses are paid by CI and charged to the Funds as

part of their administration fee.

The members of the Board of Governors are:

William Harding, Managing Partner, Alpine Asset Advisors AG

Governor since June 2005

Stuart P. Hensman, Corporate Director

Governor since December 2004

Christopher M. Hopper, President, KLQ Mechanical Ltd.

Governor since May 2007

Sharon M. Ranson, President, The Ranson Group

Governor since December 2004

Further information regarding the Board is available at www.ci.com including the Board’s

full mandate.

About the CI Funds Board of Governors

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

period ended September 30, 2009 and to date. The Governors are appointed pursuant to the

Declarations of Trust governing the Funds.

The Governors have reviewed, commented on and approved the CI Code of Ethics and Conduct, which

establishes rules of conduct designed to ensure fair treatment of the Funds’ securityholders and that,

at all times, the interests of the Funds and their securityholders are placed above personal interests

of employees, officers and directors of the Manager and each of its subsidiaries and affiliates, the

subadvisers, and the Governors, through the application of the highest standards of integrity and

ethical business conduct. The CI Code of Ethics and Conduct requires the prior clearance of personal

trades and restricts the ability of staff to trade any securities held by the Funds. The objective is not

only to remove any potential for real conflict of interest but to avoid any perception of conflict. The

Manager's year 2008 report on compliance with the CI Code of Ethics and Conduct and other relevant

policies has been provided to the Governors in a timely and satisfactory manner.

The Governors report that management has been open and cooperative, permitting the Governors to

meet with subadvisers, to meet with individual department heads and personnel to review control

mechanisms and compliance procedures, including those relating to the personal securities trading

activity of employees, and to consider other matters that affect the Funds. During 2008, 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 2008. In March 2009, the Board of Governors received and accepted the Annual Financial

Statements of the Funds.

Stuart P. Hensman

Chair, Board of Governors

September, 2009

Letter from the CI Funds Board of Governors

Semi-Annual Financial Statements as at September 30, 2009

– 3 –

Synergy American FundStatement of Investment Portfolio as at September 30, 2009 (unaudited)

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


INFORMATION TECHNOLOGY (18.0%) 53,600 Adobe Systems Inc.* 1,537,831 1,894,344 49,000 Aecom Technology Corp. 1,497,004 1,423,818 60,000 Analog Devices Inc. 1,548,433 1,769,788 17,400 Apple Computer Inc. 1,972,662 3,450,342 60,200 Broadcom Corp. 1,506,756 1,963,247

188,900 Brocade Communications Systems Inc. 1,314,378 1,577,521 179,000 Cisco Systems Inc. 4,533,830 4,505,616

71,500 Hewlett-Packard Co. 2,666,155 3,609,410 29,900 International Business Machines Corp. 3,478,048 3,825,494 54,600 Lam Research Corp.* 1,679,574 1,995,159 8,700 Mastercard Inc., Class A 1,864,118 1,881,378

277,000 Micron Technology Inc.* 2,446,087 2,428,914 53,100 Microsoft Corp. 1,455,785 1,465,635

248,400 ON Semiconductor Corp. 1,472,176 2,194,088 10,000 Palm Inc.* 173,721 186,615 68,500 QLogic Corp. 1,301,142 1,260,709

119,200 QUALCOMM Inc. 5,418,505 5,714,902 178,300 Seagate Technology 2,335,249 2,903,548

55,400 Tessera Technologies Inc. 1,425,656 1,654,271 39,627,110 45,704,799

FINANCIALS (14.9%) 139,500 Bank of America Corp. 1,912,912 2,518,142

8,900 BlackRock Inc. (USD)* 1,174,821 2,057,936 61,800 Brookfield Properties Corp. (USD)* 638,617 745,033 49,800 Chubb Corp. 2,705,387 2,685,652 15,900 Franklin Resources Inc. 1,613,653 1,709,828 24,600 Goldman Sachs Group Inc. 3,289,266 4,845,937

132,500 Hudson City Bancorp Inc. 2,320,441 1,865,478 158,700 JP Morgan Chase & Co. 6,761,722 7,435,372

32,700 Lazard Ltd. 1,359,227 1,445,577 53,500 Morgan Stanley* 1,651,307 1,765,939 51,100 MSCI Inc. 1,289,036 1,617,785 27,200 Northern Trust Corp. 1,899,062 1,692,847 48,397 Reinsurance Group of America Inc. 2,861,708 2,311,010 66,500 State Street Corp. 3,346,681 3,737,915 58,400 Unum Group 1,393,124 1,340,560

34,216,964 37,775,011 ENERGY (13.4%)

74,600 Baytex Energy Trust 1,605,680 1,760,349 42,600 Canadian Natural Resources Ltd. (USD) 2,108,166 3,064,522 72,300 Chesapeake Energy Corp. 2,245,843 2,194,521 37,700 Chevron Corp. 2,969,222 2,838,368 76,600 Noble Energy Inc.* 4,706,256 5,403,769 34,000 Occidental Petroleum Corp. 2,840,107 2,849,927 49,400 Peabody Energy Corp. 1,676,758 1,965,401 75,000 Petrohawk Energy Corp.* 1,782,354 1,938,416 76,100 Southwestern Energy Co. 3,366,514 3,470,905

134,400 Suncor Energy Inc. (USD) 4,338,083 4,973,035 39,229 Transocean Ltd. 4,349,446 3,592,313

31,988,429 34,051,526 CONSUMER DISCRETIONARY (11.2%)

46,400 Bally Tehnologies Inc. 1,762,940 1,904,168 49,800 Dollar Tree Stores Inc.* 2,356,791 2,595,011 69,400 eBay Inc. 1,806,449 1,752,814

172,900 Ford Motor Co. 853,906 1,334,685 69,400 Gap Inc. 1,139,463 1,588,604

CONSUMER DISCRETIONARY (11.2%) (cont’d)81,500 Liberty Media Corp., Entertainment Series A 1,819,388 2,712,856 98,300 LKQ Corp. 1,771,256 1,950,192 71,700 Lowe's Cos., Inc. 1,766,333 1,605,172 54,900 McDonald's Corp. 2,356,095 3,352,744 40,400 Target Corp. 1,973,456 2,017,383 43,000 Time Warner Cable Inc. 1,538,175 1,978,715 48,600 TJX Cos., Inc. 1,765,708 1,930,450 50,900 Tupperware Brands Corp.* 2,074,788 2,172,219 51,000 Walt Disney Co. 1,514,208 1,497,222

24,498,956 28,392,235 HEALTH CARE (10.5%)

79,700 Amgen Inc. 5,192,133 5,139,486 70,700 Baxter International Inc. 4,031,680 4,315,379 23,300 Becton Dickinson & Co. 1,605,822 1,737,004

156,200 Boston Scientific Corp. 1,793,542 1,769,356 59,800 Cephalon Inc.* 5,137,644 3,728,176 34,400 Medco Health Solutions Inc. 1,717,799 2,035,250 29,300 Teva Pharmaceutical Industries Ltd., ADR 1,479,004 1,586,073

133,600 Thermo Fisher Scientific Inc. 6,366,064 6,236,507 27,323,688 26,547,231

INDUSTRIALS (10.1%) 88,800 CSX Corp.* 3,906,570 3,974,090

130,200 DynCorp International Inc. 2,508,895 2,509,181 41,900 Emerson Electric Co. 1,795,563 1,796,208 76,300 Foster Wheeler AG 2,702,981 2,605,936 86,000 General Electric Co. 1,556,614 1,508,207 21,600 Lockheed Martin Corp. 2,056,855 1,802,448 71,200 Republic Services Inc. 1,737,314 2,021,631 69,700 Shaw Group Inc. 2,276,187 2,389,475 45,700 Tyco International Ltd. 1,670,608 1,687,065 84,100 Union Pacific Corp. 4,584,712 5,245,839

24,796,299 25,540,080 CONSUMER STAPLES (9.5%)

29,400 Costco Wholesale Corp. 1,690,104 1,776,572 111,500 CVS Corp. 3,986,317 4,266,560

38,200 Energizer Holdings Inc. 2,367,310 2,710,371 50,900 Kellogg Co.* 2,702,071 2,679,578 39,700 Lorillard Inc. 2,469,422 3,154,714 34,000 PepsiCo Inc. 2,133,434 2,135,352 68,000 Phillip Morris International Inc. 3,527,034 3,541,204 33,500 The J. M. Smucker Co. 1,937,200 1,898,791 35,100 Wal-Mart Stores Inc. 2,173,199 1,842,167

22,986,091 24,005,309 MATERIALS (3.7%)

66,600 AK Steel Holding Corp. 1,504,099 1,405,430 51,900 Albemarle Corp. 1,915,347 1,920,391 87,400 Dow Chemical Co. 2,061,923 2,435,758

131,400 Gold Fields Ltd., ADR 1,829,018 1,938,622 19,300 Praxair Inc.* 1,098,257 1,686,769

8,408,644 9,386,970 TELECOMMUNICATION SERVICES (2.7%)

65,000 CenturyTel Inc.* 2,274,570 2,338,305 159,600 SBA Communications Corp.* 5,034,806 4,618,781

7,309,376 6,957,086

*Denotes all or part of securities lent.Percentages shown in brackets relate investments at fair value to total net assets of the Fund.The accompanying notes are an integral part of these financial statements.

Semi-Annual Financial Statements as at September 30, 2009 CIG - 622

– 4 –

Synergy American FundStatement of Investment Portfolio as at September 30, 2009 (unaudited)


UTILITIES (2.4%) 213,700 Advantage Oil & Gas Ltd. (USD) 1,195,575 1,608,453

50,500 American Electric Power Co., Inc. 1,672,293 1,672,322 96,300 NRG Energy Inc. 2,413,775 2,904,435

5,281,643 6,185,210

Commission and other portfolio transaction costs (260,979)

Total Equities (96.4%) 226,176,221 244,545,457

DERIVATIVE INSTRUMENTS

Foreign Currency Forward Contracts (0.3%) (see Schedule A) 858,688

Total Investments (96.7%) 226,176,221 245,404,145

Other Assets (net) (3.3%) 8,592,516

Total Net Assets (100.0%) 253,996,661

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


Schedule AForeign Currency Forward Contracts (0.3%)

Contracts Counterparty Credit Rating* Price ($) Due Date Pay Receive Unrealized Gain (Loss) ($)

1 Royal Bank of Canada A-1+ 1.09 08-Oct-09 (36,911,391) US $ 40,377,371 Canadian $ 858,688

Total Foreign Currency Forward Contracts Value 858,688

*Credit ratings are obtained from Standard & Poor’s, otherwise ratings are obtained from: Moody's Investors Service, Dominion Bond Rating Services and Canadian Bond Rating Services, respectively.

– 5 –

Synergy American FundFinancial Statements (unaudited)


AssetsInvestments at fair value*CashShort term investmentsMargin for short salesIncome taxes recoverableDaily variation margin on derivative investmentsUnrealized gain on derivative investmentsCash collateral received for securities on loan (Note 6)Premium paid for options contractReceivable for unit subscriptionsReceivable for securities soldManagement fee rebate receivableReceivable for dividends and accrued interest

LiabilitiesBank overdraftManagement fees payableAccrued expensesUnrealized loss on derivative investmentsPremium received from options contractPayable for securities purchasedPayable for unit redemptionsPayable for cash collateral under securities lending (Note 6)Investments sold short at fair value**Distributions payable

Net assets and unitholders' equity

**Investments at cost**Investments sold short at cost

Net assets per classClass AClass FClass I

Net assets per unit (see Schedule of Net Assets Reconciliation)

Class AClass FClass I

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


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

ExpensesManagement fees (Note 5)Administrative fees (Note 5)Interest expenseGoods and services tax

Net investment income (loss) for the period

Realized and unrealized gain (loss) on investments and commissions and other portfolio transaction costs (see Schedule of Commissions)

Realized gain (loss) on investmentsForeign exchange gain (loss)Commissions and other portfolio transaction costsCapital gain distribution from investmentsChange in unrealized appreciation (depreciation)

of investmentsNet gain (loss) on investmentsIncrease (decrease) in net assets from operations

Increase (decrease) in net assets from operations per classClass AClass FClass I

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


244,545 215,6708,529 13,507

- -- -- -- -

859 -- -- -

193 300- 370- -

186 242254,312 230,089

- -- -- -- -- -- -

315 87- -- -- -

315 87253,997 230,002

226,176 215,207- -

59,809 56,4421,084 1,030

193,104 172,530

10.07 9.296.02 5.52

11.69 10.67

5,941,668 6,074,498180,117 186,410

16,517,517 16,174,204

1,685 1,69213 11621 14

- -- -- -

(224) (250)1,495 1,572

587 79462 84

- -32 44

681 922814 650

2,948 (11,135)(471) (52)(497) (242)

- -

18,765 (14,408)20,745 (25,837)21,559 (25,187)

4,657 (7,290)92 (139)

16,810 (17,758)

0.78 (1.17)0.50 (0.73)1.02 (1.24)

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

as at as at

September 30, 2009 March 31, 2009

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

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

2009 2008

– 6 –

Class ANet assets, beginning of periodCapital transactions

Proceeds from units issued Reinvested distributions (Note 7)Amounts paid for units redeemed

Distributions to investorsFrom realized gainsFrom net incomeFrom return of capital

Increase (decrease) in net assets from operationsNet assets, end of period

Class FNet assets, beginning of periodCapital transactions




Class INet assets, beginning of periodCapital transactions




Total FundNet assets, beginning of periodCapital transactions




172,530 205,067

9,681 10,455- -

(5,917) (8,970)3,764 1,485

- -- -- -- -

16,810 (17,758)193,104 188,794

230,002 287,150

17,057 17,195- -

(14,621) (20,611)2,436 (3,416)

- -- -- -- -

21,559 (25,187)253,997 258,547

56,442 80,747

7,124 6,357- -

(8,414) (11,424)(1,290) (5,067)

- -- -- -- -

4,657 (7,290)59,809 68,390

1,030 1,336

252 383- -

(290) (217)(38) 166

- -- -- -- -

92 (139)1,084 1,363

Synergy American FundFinancial Statements (unaudited)


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

2009 2008


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

2009 2008

– 7 –

Class ABalance, beginning of periodUnits issued for cash Units issued for reinvested distributions (Note 7)Units redeemedBalance, end of period

Class FBalance, beginning of periodUnits issued for cash Units issued for reinvested distributions (Note 7)Units redeemedBalance, end of period

Class IBalance, beginning of periodUnits issued for cash Units issued for reinvested distributions (Note 7)Units redeemedBalance, end of period

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

2009 2008

LoanedCollateral (non-cash)

19,591 52,81319,983 56,431

Synergy American FundFinancial Statements – Supplementary Schedules (unaudited)

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

2009 2008

Brokerage commissionsSoft Dollar commissions†

496 24061 24

Schedule of Fund Unit Transactions for the periods ended September 30

2009 2008

6,074,498 6,446,050739,932 503,932

- -(872,762) (907,438)

5,941,668 6,042,544

186,410 179,40743,659 50,775

- -(49,952) (28,715)180,117 201,467

16,174,204 14,271,240874,993 718,829

- -(531,680) (617,297)

16,517,517 14,372,772


†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.

Annual management fee rateClass AClass FClass I

Annual fixed administration fee rateClass AClass FClass I

2.001.00

Paid directly by investor

0.210.21

-

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

2009

Class ANet assets per unitSection 3855 adjustment per unitNet asset value per unit

Class FNet assets per unitSection 3855 adjustment per unitNet asset value per unit

Class INet assets per unitSection 3855 adjustment per unitNet asset value per unit

10.07 11.320.01 0.01

10.08 11.33

6.02 6.76- 0.01

6.02 6.77

11.69 13.140.01 0.01

11.70 13.15

Schedule of Net Assets Reconciliation (Note 2)as at September 30 (in $)

2009 2008

– 8 –

Synergy Tactical Asset Allocation FundStatement of Investment Portfolio as at September 30, 2009 (unaudited)



FUNDS (32.3%) 6,350,285 Synergy Global Corporate Class Z Shares 77,630,595 64,455,394

FINANCIALS (18.4%) 2,200 AGF Management Ltd., Class B 35,764 37,554

160,000 American Express Canada 4.7% 05/20/2011 159,987 165,203 400,000 Bank of Ireland 3.8% 09/22/2015 395,002 389,288 50,500 Bank of Montreal 2,185,517 2,735,585

525,000 Bank of Montreal 5.18% 06/10/2015 524,758 576,560 4,124 Bank of Nova Scotia†† 123,616 201,540

305,000 Bank of Nova Scotia 5.04% 04/08/2013†† 300,898 328,479 585,000 Bank of Nova Scotia 6% 10/03/2018†† 586,100 644,518 300,000 Bear Stearns Co., Inc. 4.3% 01/12/2011 304,515 306,726 375,000 BNS Capital Trust, Callable 7.31% 12/31/2049 387,709 397,770

700 Boardwalk REIT 16,987 26,831 350,000 Brookfield Asset Management Inc.

8.95% 06/02/2014 349,307 391,324 2,100 Brookfield Properties Corp. 24,148 25,263 1,700 Calloway REIT 23,597 32,283

175,000 Calloway REIT 10.25% 04/14/2014 175,000 199,703 1,025,000 Canada Housing Trust No.1 4% 06/15/2012 1,090,057 1,081,385

510,000 Canada Housing Trust No.1 4.1% 12/15/2018 526,305 533,098 380,000 Canada Life Capital Trust 6.679% 06/30/2012 358,298 407,265 380,000 Canadian Imperial Bank of Commerce

3.05% 06/03/2013 379,799 383,021 450,000 Canadian Western Bank 6.199% 12/31/2056 450,000 388,309 675,000 Canadian Western Bank 5.07% 03/22/2017 675,000 674,320 700,000 Canadian Western Bank 5.95% 06/27/2018 697,914 704,030

5,694 Canadian Western Bank* 91,306 112,969 2,700 Chartwell Seniors Housing REIT 15,668 17,847

340,000 CIT Group Holdings Inc. 4.72% 02/10/2011 343,036 221,592 345,000 Citigroup Finance Canada Inc.

6.75% 09/22/2014 344,696 361,453 19,200 Coastal Energy Co. 63,761 89,664

525,000 Commerzbank AG, FRN 4.5% 12/15/2016 523,761 460,425 550,000 Co-operators Financial Services Ltd.

5.07% 07/20/2012 550,968 558,640 1,000,000 Depfa ACS Bank 5.25% 03/31/2025 1,058,190 814,140

350,000 Deutsche Bank AG 4.9% 08/22/2016 349,874 324,100 575,000 First Capital Realty Inc. 5.25% 03/30/2011 573,126 583,194 400,000 First Capital Realty Inc. 5.34% 04/01/2013 400,472 383,252 160,000 First Captial Realty Inc. 5.49% 12/01/2011 160,408 161,099

7,300 Genworth MI Canada Inc. 142,014 175,200 2,700 Gluskin Sheff & Associates Inc. 49,778 53,946

450,000 Golden Credit Card Trust 5.106% 04/15/2011 454,323 472,622 1,400 H&R REIT 14,259 19,334 6,500 Home Capital Group Inc. 237,117 248,625

135,000 HSBC Bank Canada 4.94% 03/16/2021 134,915 136,839 3,775 IGM Financial Inc.* 130,729 159,758 3,900 Industrial Alliance Insurance and

Financial Services Inc. 142,689 114,192 300,000 Instituto de Credito Oficial 4.53% 03/17/2016 307,590 307,893

7,200 Intact Financial Corp. 201,132 243,792 415,000 Inter-American Development Bank

4.4% 01/26/2026 396,300 383,676

FINANCIALS (18.4%) (cont’d)USD 175,000 JP Morgan Chase & Co., FRN Callable

7.9% 04/30/2049 167,249 179,901 2,800 Killam Properties Inc. 16,885 19,376

685,000 Kimco North Trust II 4.45% 04/21/2010 695,645 690,658 350,000 Kimco North Trust III 5.18% 08/16/2013 349,044 331,779

900 Laurentian Bank of Canada 26,678 34,515 275,000 Manulife Financial Capital Trust

6.7% 06/30/2012 284,729 294,245 14,575 Manulife Financial Corp.* 351,370 327,938

545,000 Merrill Lynch & Co., Inc. 4.5% 01/30/2012 507,025 549,513 500,000 Merrill Lynch Canada Finance Co.

5.8% 05/05/2011 499,930 515,360 230,000 MetLife Global Funding I 4.5% 02/10/2011 228,796 235,750 500,000 MI Developments Inc. 6.05% 12/22/2016 508,920 385,130

8,100 National Bank of Canada 347,163 482,274 150,000 National Bank of Canada 4.456% 11/02/2016 150,000 156,378 600,000 Nordea Bank AB 3.95% 08/05/2015 597,384 601,266 225,000 Power Corp. of Canada 7.57% 04/22/2019 224,874 256,606

7,423 Power Corp. of Canada* 157,920 217,345 700 Power Financial Corp. 16,401 21,525

415,000 RBC Capital Trust 7.288% 12/31/2049 427,706 431,949 200,000 RioCan REIT 4.91% 03/08/2011 202,400 203,274 58,237 Royal Bank of Canada 2,319,704 3,351,539

300,000 Royal Bank of Canada 5.06% 07/17/2013 300,256 324,264 110,000 Royal Bank of Canada 5.2% 08/15/2012 112,301 118,683 540,000 Royal Bank of Scotland 4.25% 03/30/2015 537,821 453,184

1,235,000 Royal Bank of Scotland, Callable 5.37% 05/12/2049 1,197,290 697,775

343,907 Royal Office Finance LP 5.209% 11/12/2032 343,904 344,767 440,000 Scotiabank Capital Trust, Series 2002-1

Callable 6.626% 06/30/2052†† 431,872 478,333 64,500 Sun Life Financial Inc. 2,039,543 2,163,975

350,000 Sun Life Financial Inc. 5% 07/11/2031 349,433 364,651 200,000 Sun Life Financial Inc. 7.9% 03/31/2019 199,732 230,472 150,000 TD Capital Trust 10% 06/30/2039 150,000 218,775 250,000 TD Capital Trust 6.631% 06/30/2108 250,000 262,230 355,000 TD Capital Trust 6.792% 12/31/2049 355,825 391,185 250,000 TD Capital Trust 7.243% 12/31/2018 257,500 279,705

3,200 TMX Group Inc. 108,886 114,464 215,000 Toronto-Dominion Bank 4.854% 02/13/2013 215,000 230,583 300,000 Toronto-Dominion Bank 5.141% 11/19/2012 300,000 323,808

46,300 Toronto-Dominion Bank* 2,934,796 3,206,275 200,000 YPG Holdings Inc., Callable 5.71% 04/21/2014 192,832 194,768

34,813,204 36,718,525 GOVERNMENT BONDS (12.7%)

1,460,000 55 Ontario School Board Trust 5.9% 06/02/2033 1,693,256 1,596,452

890,000 Austria Government International Bond 5.375% 12/01/2034 956,843 903,840

930,000 Canadian Government Bond 2% 09/01/2012 930,430 932,836 700,000 Canadian Government Bond 2% 12/01/2014 677,502 680,778 935,000 Canadian Government Bond 3% 06/01/2014* 961,705 956,935 530,000 Canadian Government Bond 3.5% 06/01/2020 528,182 530,541 750,000 Canadian Government Bond 3.75% 09/01/2011* 791,718 785,235

* Denotes all or part of securities lent.††CI Investments Inc., the Manager, is a corporation controlled by CI Financial Corp. The Bank of Nova Scotia owns a significant interest in CI Financial Corp. and is therefore, considered a related party to CI Investments Inc. Investments in

The Bank of Nova Scotia are identified above.Percentages shown in brackets relate investments at fair value to total net assets of the Fund.The accompanying notes are an integral part of these financial statements.

Semi-Annual Financial Statements as at September 30, 2009 CIG - 6115

– 9 –




GOVERNMENT BONDS (12.7%) (cont’d)555,000 Canadian Government Bond 4% 06/01/2016* 586,837 594,627

1,814,000 Canadian Government Bond 4.5% 06/01/2015* 1,979,367 1,989,359 60,000 Canadian Government Bond 5% 06/01/2014* 64,800 66,686

535,000 Canadian Government Bond 5.75% 06/01/2029* 655,054 665,931 1,015,000 Canadian Government Bond,

Series XW98 5% 06/01/2037* 1,167,234 1,214,407 695,000 Canadian Government Bond,

Series YF56 4% 06/01/2017* 732,620 742,510 4,330,000 Canadian Government Bond,

Series YN80 3.5% 06/01/2013* 4,504,576 4,531,258 500,000 City of Montreal 6% 06/01/2043 597,088 567,890

1,100,000 City of Toronto 5.05% 07/18/2017 1,097,008 1,180,091 1,100,000 EUROFIMA 5.15% 12/13/2019 1,163,318 1,120,174

356,729 New Brunswick F-M Project Co., Inc., Callable 6.47% 11/30/2027 396,480 411,091

500,000 Province of British Columbia 4.7% 06/18/2037 492,640 514,085 515,000 Province of Ontario 4.3% 03/08/2017 506,133 542,434 155,000 Province of Ontario 4.4% 03/08/2016 163,249 165,427 600,000 Province of Ontario 4.7% 06/02/2037 589,970 614,844 439,000 Province of Quebec 4.5% 12/01/2016 425,529 468,194 446,000 Province of Quebec 4.5% 12/01/2017 442,311 471,814

1,050,000 Province of Quebec 5.75% 12/01/2036 1,155,161 1,213,622 475,000 Province of Quebec 6% 10/01/2029* 545,044 552,686 300,000 Queen's University 6.1% 11/19/2032 344,190 335,430 800,000 University of Ottawa 6.28% 04/15/2043 994,400 916,856

25,142,645 25,266,033 ENERGY (6.0%)

369,483 Alliance Pipeline LP 7.181% 06/30/2023 441,318 412,816 2,700 AltaGas Income Trust 72,555 47,412

450,000 AltaGas Income Trust 4.41% 09/01/2010 433,804 455,702 125,000 AltaGas Income Trust 5.07% 01/19/2012 124,956 126,122

3,100 Bankers Petroleum Ltd. 10,782 14,508 13,350 Baytex Energy Trust 315,399 315,060

7,300 BlackWatch Energy Services Corp. 7,300 9,198 35,806 Canadian Natural Resources Ltd. 2,215,728 2,588,774

185,000 Canadian Natural Resources Ltd. 4.5% 01/23/2013 182,379 193,717

3,594 Canadian Oil Sands Trust 66,502 110,516 7,000 Capital Power Corp. 160,722 138,250

22,400 Daylight Resources Trust 179,906 189,504 7,800 Delphi Energy Corp. 10,789 10,842

165,000 Enbridge Gas Distribution Inc. 6.9% 11/15/2032 194,466 197,606 40,550 Enbridge Inc.* 1,490,888 1,685,664

135,000 Enbridge Inc., 5.17% 05/19/2016 134,922 144,347 485,000 Enbridge Pipelines Inc. 6.62% 11/19/2018 484,791 570,142

14,685 EnCana Corp. 856,601 910,470 7,600 Enerflex Systems Income Fund 85,515 76,076 3,008 Imperial Oil Ltd. 116,965 122,576

10,500 Inter Pipeline Fund LP 98,968 100,800 7,800 Keyera Facilities Income Fund 139,876 153,972 4,000 Magma Energy Corp. 6,000 7,600 7,950 Mullen Group Ltd. 123,852 125,372

16,400 NAL Oil & Gas Trust 159,188 207,788 2,500 NuVista Energy Ltd.* 35,595 31,050

12,500 Orbit Garant Drilling Inc. 50,000 33,125 4,000 Petrobank Energy and Resources Ltd.* 149,504 176,520 1,600 Peyto Energy Trust 16,381 17,056

ENERGY (6.0%) (cont’d)2,800 Phoenix Technology Income Fund 33,245 21,588

19,000 Precision Drilling Trust 135,412 134,520 3,700 Progress Energy Resources Corp.* 49,780 50,875

47 ProspEx Resources Ltd. 162 54 3,150 Savanna Energy Services Corp.* 19,609 20,979 6,800 ShawCor Ltd., Class A, Sub-Voting Shares 162,431 196,928 5,100 Sterling Resources Ltd. 8,206 7,803

24,976 Suncor Energy Inc. 682,457 934,102 290,000 Suncor Energy Inc. 5.8% 05/22/2018 249,646 305,121

11,450 Talisman Energy Inc. 176,462 213,314 275,000 Terasen Gas Vancouver Island Inc.

6.05% 02/15/2038 274,810 298,414 1,719 TransCanada Corp.* 54,681 57,363

200,000 TransCanada Pipelines Ltd. 10.625% 10/20/2009 239,700 200,722

6,000 Trican Well Service Ltd.* 51,083 83,340 12,906 TriStar Oil & Gas Ltd. 162,324 201,979

3,800 Xtreme Coil Drilling Corp. 39,919 20,976 10,705,579 11,920,663

MATERIALS (5.3%) 33,400 Agrium Inc.* 1,775,329 1,782,558 10,700 Alamos Gold Inc. 66,256 100,473 20,500 Anatolia Minerals Development Ltd. 44,269 50,020 17,000 Anvil Mining Ltd. 41,245 47,430

4,500 Aura Minerals Inc. 14,026 12,555 78,300 B2Gold Corp. 59,088 59,508 14,000 Banro Corp. 31,705 39,620 11,095 Barrick Gold Corp.* 448,440 449,791 6,300 Bio-Extraction Inc. 7,347 8,316

28,300 Cameco Corp. 581,006 840,793 150,000 Cameco Corp. 5.67% 09/02/2019 153,063 153,972

37,675 Capstone Mining Corp. 94,737 110,388 15,800 Cascades Inc. 62,674 122,924 3,700 CCL Industries Inc., Class B 91,323 81,511

52,500 Centamin Egypt Ltd. 50,612 86,100 7,900 Centerra Gold Inc. 46,275 57,512

800 Coal & Allied Industries Ltd. 55,131 59,852 5,000 Copper Mountain Mining Corp. 5,750 7,150

68,500 Eldorado Gold Corp.* 546,029 832,275 1,800 First Quantum Minerals Ltd. 97,870 126,000

113,300 Gerdau Ameristeel Corp.* 829,755 960,784 50,425 Goldcorp Inc. 1,924,384 2,167,266

7,400 HudBay Minerals Inc.* 75,443 95,460 5,900 IAMGOLD Corp. 75,749 89,267 2,000 Inmet Mining Corp. 95,137 119,920

10,300 International Tower Hill Mines Ltd. 37,350 44,496 7,650 Jaguar Mining Inc.* 44,273 73,134 6,100 Kinross Gold Corp. 109,880 141,642 4,400 Kirkland Lake Gold Inc. 36,904 40,348 1,500 Kirkland Lake Gold Inc.,

Restricted Shares (11Jan10) 12,225 13,755 2,100 Labrador Iron Ore Royalty Income Fund 76,632 76,965 4,200 Lundin Mining Corp. 16,712 15,162

100 MAG Silver Corp.* 1,160 621 11,200 Major Drilling Group International Inc. 160,982 243,376

6,000 Metalex Ventures Ltd., Restricted Shares 4,800 5,880 9,800 Methanex Corp. 175,620 181,398

* Denotes all or part of securities lent.Percentages shown in brackets relate investments at fair value to total net assets of the Fund.The accompanying notes are an integral part of these financial statements.


– 10 –



MATERIALS (5.3%) (cont’d)2,700 Paladin Resources Ltd. 6,897 11,421

300 Pan American Silver Corp.* 7,259 7,302 9,100 Phoscan Chemical Corp. 15,121 3,322 1,025 Potash Corp. of Saskatchewan Inc. 105,305 99,548 3,700 Quadra Mining Ltd.* 38,668 53,761

30,900 Red Back Mining Inc.* 222,672 371,418 12,600 San Gold Corp. 29,099 37,170 45,300 SEMAFO Inc. 102,164 127,293

380,000 Sherritt International Corp. 7.75% 10/15/2015 380,000 372,552 2,300 Silver Wheaton Corp. 27,493 31,050

2 SPDR Gold Trust 109 212 5,300 Teck Resources Ltd., Class B* 107,182 156,297 4,525 Thompson Creek Metals Co., Inc.* 52,285 58,418 8,700 Ur-Energy Inc. 9,756 8,004 1,700 Western Areas NL 7,251 8,024

9,060,442 10,644,014 INDUSTRIALS (4.5%)

200,000 407 International Inc. 5.1% 01/20/2014 199,808 216,186 3,200 5N Plus Inc. 24,029 20,000

492,676 Access Roads Edmonton Ltd. 5.812% 09/30/2037 518,714 479,758

14,000 Aecon Group Inc. 182,530 163,940 1,800 Armtec Infrastructure Income Fund 32,506 35,928 3,500 ATS Automation Tooling Systems Inc. 18,968 20,020 1,500 Bird Construction Income Fund 40,428 48,765

222,300 Bombardier Inc., Class B, Sub-Voting Shares 1,210,652 1,098,162 44,047 Canadian National Railway Co. 2,122,268 2,322,598

2,175 Canadian Pacific Railway Ltd.* 91,985 108,924 23,900 Celestica Inc. 174,007 242,107

5,200 CVTech Group Inc., Restricted Shares 8,320 7,592 250,000 Finning International Inc. 5.16% 09/03/2013 249,985 260,380 280,000 FortisAlberta Inc. 5.33% 10/31/2014 294,448 303,503

6,200 GLV Inc. 45,362 52,080 155,216 Greater Toronto Airports Authority

6.45% 07/30/2029 174,977 163,402 155,000 Greater Toronto Airports Authority,

Callable 6.98% 10/15/2032 150,223 181,020 800 Hammond Power Solutions Inc. 7,309 7,088

3,100 Heroux-Devtek Inc. 17,159 16,120 550,000 Holcim Finance Canada Inc. 5.9% 06/21/2013 549,236 552,893

1,300 MacDonald Dettwiler & Associates Ltd. 31,647 40,651 2,619 Martinrea International Inc. 16,666 18,700 1,500 Newalta Inc.* 7,601 11,445 3,600 Onex Corp. 88,232 94,356 1,800 Pure Technologies Ltd. 6,534 7,200 2,500 Quebecor World Inc., Class B 54,953 61,075 1,600 Ritchie Bros. Auctioneers Inc.* 32,357 42,048 4,900 Rocky Mountain Dealership Inc. 49,422 28,224

700 Russel Metals Inc. 10,695 11,900 4,800 SNC-Lavalin Group Inc. 198,460 232,080

170,000 SNC-Lavalin Group Inc. 6.19% 07/03/2019 170,000 182,726 731,788 Strait Crossing Development Inc.

6.17% 09/15/2031 735,543 709,900 2,500 Toromont Industries Ltd. 59,897 57,150

600 Transat AT Inc., Class B 8,712 10,068 2,800 Transcontinental Inc., Class A 23,930 34,384

INDUSTRIALS (4.5%) (cont’d)900 Uranium Participation Corp.* 6,761 5,814 800 WaterFurnace Renewable Energy, Inc. 19,612 21,352

105,950 WestJet Airlines Ltd.* 1,615,294 1,169,688 9,249,230 9,039,227

CONSUMER DISCRETIONARY (2.9%) 2,000 Astral Media Inc., Class A, Non-Voting Shares 51,313 66,200

300,000 Canadian Tire Corp., Ltd. 5.22% 10/01/2010 299,952 311,217 5,278 Canadian Tire Corp., Ltd., Class A,

Non-Voting Shares 262,840 304,646 8,000 Cineplex Galaxy Income Fund 115,523 127,680 9,300 Corus Entertainment Inc., Class B 158,242 168,888 5,700 Dorel Industries Inc., Class B 179,542 166,554 5,669 Forzani Group Ltd., Class A 73,889 76,532 1,700 Linamar Corp. 21,481 24,174 1,050 Magna International Inc., Class A* 38,079 47,744

13,200 Miranda Technologies Inc. 140,625 78,540 260,000 Rogers Communications Inc. 5.8% 05/26/2016 259,394 279,391

1,600 RONA Inc. 20,938 24,000 370,000 RONA Inc. 5.4% 10/20/2016 369,230 337,381 390,000 Shaw Communications Inc. 5.65% 10/01/2019 388,764 395,511 405,000 Shaw Communications Inc. 6.5% 06/02/2014 404,531 445,674

5,000 Shaw Communications Inc., Class B 106,092 96,900 80,850 Thomson Corp. 2,644,264 2,902,515

5,534,699 5,853,547 INFORMATION TECHNOLOGY (2.9%)

422 Aastra Technologies Ltd.* 8,085 9,934 4,000 Bridgewater Systems Corp. 22,000 32,720

202,300 CGI Group Inc. 2,087,686 2,536,842 11,400 COM DEV International Ltd. 55,673 31,806

700 March Networks Corp. 2,457 2,947 33,600 Open Text Corp. 1,167,200 1,347,696 19,025 Research In Motion Ltd. 1,327,609 1,377,030

900 Ruggedcom Inc. 18,538 20,700 215,000 Thomson Reuters Corp. 5.7% 07/15/2015 214,609 237,089 110,000 Thomson Reuters Corp. 6% 03/31/2016 109,739 123,077

5,013,596 5,719,841 UTILITIES (1.7%)

29,000 Advantage Oil & Gas Ltd. 160,670 218,370 983 Atco Ltd., Class I 35,756 41,089

3,411 Brookfield Renewable Power Fund 56,903 60,136 695,000 Brookfield Renewable Power Inc.

4.65% 12/16/2009 698,051 696,932 300,000 Brookfield Renewable Power Inc.

5.84% 11/05/2036 301,187 226,233 500,000 Canadian Hydro Developers Inc.

5.334% 09/01/2015 500,000 463,700 2,900 Canadian Utilities Ltd., Class A,

Special Shares* 138,965 109,707 1,000 Emera Inc.* 21,813 21,250

110,000 Fortis Inc. 6.51% 07/04/2039 109,927 118,843 535,000 Reliance LP 7.3% 04/03/2013 535,000 538,606 160,000 Terasen Gas Inc. 5.8% 05/13/2038 159,482 170,536 200,000 Terasen Gas Inc. 6% 10/02/2037 199,282 218,830 250,000 Terasen Gas Inc., Callable 6.5% 05/01/2034 270,254 287,838 275,000 Union Gas Ltd. 5.35% 04/27/2018 274,642 295,070

3,461,932 3,467,140

*Denotes all or part of securities lent.Percentages shown in brackets relate investments at fair value to total net assets of the Fund.The accompanying notes are an integral part of these financial statements



– 11 –– 11 –– 11 –



TELECOMMUNICATION SERVICES (0.9%) 9,000 BCE Inc.* 219,350 237,510

155,000 Bell Aliant Regional CommunicationsIncome Fund 6.17% 02/26/2037 125,985 137,276

155,000 Bell Aliant Regional Communications LP 6.29% 02/17/2015 155,412 168,662

180,000 Bell Canada 5% 02/15/2017 161,780 183,854 500,000 France Telecom SA 4.95% 06/23/2011 502,930 514,095 150,000 France Telecom SA 5.5% 06/23/2016 155,445 158,784 410,000 Northwest Connect Group 5.95% 04/30/2041 412,694 387,237

1,733,596 1,787,418 CONSUMER STAPLES (0.7%)

900 AG Growth International Inc. 23,232 30,393 1,600 Alliance Grain Traders Inc. 24,615 31,360 1,256 Empire Co., Ltd., Class A 60,729 54,787

667 George Weston Ltd. 44,752 37,179 4,500 GLG Life Tech Corp. 9,825 12,105 1,500 Loblaw Cos. Ltd. 54,868 47,340

155,000 Loblaw Cos. Ltd. 4.85% 05/08/2014 154,966 162,287 135,000 Loblaw Cos. Ltd. 6.05% 06/09/2034 91,395 124,423 140,000 Loblaw Cos. Ltd. 6.15% 01/29/2035 97,678 130,889 300,000 Metro Inc. 5.97% 10/15/2035 285,885 278,145 190,000 Molson Coors Capital Finance Co.,

Senior Notes 5% 09/22/2015 189,527 196,333 5,700 Shoppers Drug Mart Corp. 239,522 250,458 9,700 Viterra Inc.* 90,901 103,499

1,367,895 1,459,198 ASSET BACKED (0.7%)

300,000 CCIC 2006-WEM Class F 5.248% 01/15/2022 299,992 207,552 700,000 CCIC 2006-WEM MBS A2 4.934% 01/15/2022 699,976 587,769 575,000 Merrill Lynch Financial Assets Inc.

4.678% 03/12/2039 574,984 564,851 1,574,952 1,360,172

HEALTH CARE (0.1%) 149,084 Access Health Abbotsford Ltd.

6.032% 03/07/2038 168,233 150,029 3,300 Atrium Innovations Inc. 56,991 48,213 4,950 Biovail Corp.* 73,574 81,724 1,100 Paladin Labs Inc. 14,071 19,117

312,869 299,083 WARRANTS (0.1%)

6,250 EarthFirst Canada Inc., Warrants (11Dec09) - 31 24,050 First Majestic Silver Corp.,

Warrants (25Mar10) - 2,044 4,350 Gold Wheaton Gold Corp., Warrants (08Jul13) - 218

500 Kirkland Lake Gold Inc., Purchase Warrants (10Oct10) - 894

800 Laramide Resources Ltd., Warrants (05Mar12) - 205 1,800 New Gold Inc., Warrants (21Dec09) - 87

- 3,479

Commission and other portfolio transaction costs (59,545)

Total Bonds & Equities (89.2%) 185,541,689 177,993,734

DERIVATIVE INSTRUMENTS

Foreign Currency Forward Contracts (0.1%) (see Schedule A) 9,775

Total Investments (89.3%) 185,541,689 178,003,509

Other Assets (net) (10.7%) 21,460,624

Total Net Assets (100.0%) 199,464,133

Principal amounts stated in:USD U.S. Dollar

*Denotes all or part of securities lent.Percentages shown in brackets relate investments at fair value to total net assets of the Fund.The accompanying notes are an integral part of these financial statements.



Schedule AForeign Currency Forward Contracts (0.1%)

Contracts Counterparty Credit Rating* Price ($) Due Date Pay Receive Unrealized Gain (Loss) ($)

1 Credit Suisse First Boston Corp. A-1 1.09 12-Nov-09 (39,000) US $ 42,399 Canadian $ 647 1 Credit Suisse First Boston Corp. A-1 1.09 12-Nov-09 (513,000) US $ 558,334 Canadian $ 9,128

Total Foreign Currency Forward Contracts Value 9,775

*Credit ratings are obtained from Standard & Poor’s, otherwise ratings are obtained from: Moody's Investors Service, Dominion Bond Rating Services and Canadian Bond Rating Services, respectively.

– 12 –

Synergy Tactical Asset Allocation FundFinancial Statements (unaudited)


AssetsInvestments at fair value*CashShort term investmentsMargin for short salesIncome taxes recoverableDaily variation margin on derivative investmentsUnrealized gain on derivative investmentsCash collateral received for securities on loan (Note 6)Premium paid for options contractReceivable for unit subscriptionsReceivable for securities soldManagement fee rebate receivableReceivable for dividends and accrued interest

LiabilitiesBank overdraftManagement fees payableAccrued expensesUnrealized loss on derivative investmentsPremium received from options contractPayable for securities purchasedPayable for unit redemptionsPayable for cash collateral under securities lending (Note 6)Investments sold short at fair value**Distributions payable

Net assets and unitholders' equity

**Investments at cost**Investments sold short at cost

Net assets per classClass AClass FClass I

Net assets per unit (see Schedule of Net Assets Reconciliation)


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


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

ExpensesManagement fees (Note 5)Administrative fees (Note 5)Interest expenseGoods and services tax

Net investment income (loss) for the period

Realized and unrealized gain (loss) on investments and commissions and other portfolio transaction costs (see Schedule of Commissions)

Realized gain (loss) on investmentsForeign exchange gain (loss)Commissions and other portfolio transaction costsCapital gain distribution from investmentsChange in unrealized appreciation (depreciation)

of investmentsNet gain (loss) on investmentsIncrease (decrease) in net assets from operations

Increase (decrease) in net assets from operations per classClass AClass FClass I

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


177,994 185,65619,174 2,601

- -- -- -- -

10 -- -- -

186 1552,067 273

4 4897 1,146

200,332 189,835

- -- -- -- -- -

617 4251 214

- -- -- -

868 218199,464 189,617

185,542 215,444- -

73,167 68,4451,441 1,620

124,856 119,552

7.08 6.235.74 5.029.53 8.28

10,329,154 10,985,623251,154 322,866

13,106,492 14,433,637

536 5611,852 2,507

8 21- -- -- -- -

2,396 3,089

45 1714 16

- 13 2

62 362,334 3,053

2,166 4,303(52) 228(90) (132)

- -

22,250 (23,290)24,274 (18,891)26,608 (15,838)

9,163 (6,293)200 (132)

17,245 (9,413)

0.86 (0.56)0.74 (0.39)1.24 (0.59)

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

as at as at

September 30, 2009 March 31, 2009


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

2009 2008

– 13 –

Class ANet assets, beginning of periodCapital transactions




Class FNet assets, beginning of periodCapital transactions




Class INet assets, beginning of periodCapital transactions




Total FundNet assets, beginning of periodCapital transactions




119,552 168,085

134 52- -

(12,075) (15,924)(11,941) (15,872)

- -- -- -- -

17,245 (9,413)124,856 142,800

189,617 259,944

6,683 7,063- -

(23,444) (27,095)(16,761) (20,032)

- -- -- -- -

26,608 (15,838)199,464 224,074

68,445 89,741

6,438 6,859- -

(10,879) (10,865)(4,441) (4,006)

- -- -- -- -

9,163 (6,293)73,167 79,442

1,620 2,118

111 152- -

(490) (306)(379) (154)

- -- -- -- -

200 (132)1,441 1,832

Synergy Tactical Asset Allocation FundFinancial Statements (unaudited)


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

2009 2008


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

2009 2008

– 14 –

Class ABalance, beginning of periodUnits issued for cash Units issued for reinvested distributions (Note 7)Units redeemedBalance, end of period

Class FBalance, beginning of periodUnits issued for cash Units issued for reinvested distributions (Note 7)Units redeemedBalance, end of period

Class IBalance, beginning of periodUnits issued for cash Units issued for reinvested distributions (Note 7)Units redeemedBalance, end of period

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

2009 2008

LoanedCollateral (non-cash)

16,582 14,62116,914 15,623

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

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

2009 2008

Brokerage commissionsSoft Dollar commissions†

89 1319 13

Schedule of Fund Unit Transactions for the periods ended September 30

2009 2008

10,985,623 11,735,855964,084 887,955

- -(1,620,553) (1,407,432)

10,329,154 11,216,378

322,866 343,69720,823 23,820

- -(92,535) (48,271)251,154 319,246

14,433,637 16,519,69715,230 4,952

- -(1,342,375) (1,543,027)

13,106,492 14,981,622


†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.

Annual management fee rateClass AClass FClass I

Annual fixed administration fee rateClass AClass FClass I

1.950.95

Paid directly by investor

0.220.22

-

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

2009

Class ANet assets per unitSection 3855 adjustment per unitNet asset value per unit

Class FNet assets per unitSection 3855 adjustment per unitNet asset value per unit

Class INet assets per unitSection 3855 adjustment per unitNet asset value per unit

7.08 7.080.01 0.017.09 7.09

5.74 5.74- -

5.74 5.74

9.53 9.53- 0.01

9.53 9.54

Schedule of Net Assets Reconciliation (Note 2)as at September 30 (in $)

2009 2008

– 15 –

Portfolio Breakdown as at March 31, 2009Percentage of

Categories Net Asset Value (%)

Funds ....................................................................................................................................... 29.6Financials ................................................................................................................................ 21.3Government Bonds .................................................................................................................. 15.7Energy ..................................................................................................................................... 9.3Materials ................................................................................................................................. 5.7Industrials ............................................................................................................................... 5.3Information Technology .......................................................................................................... 3.6Consumer Discretionary .......................................................................................................... 2.0Utilities .................................................................................................................................... 1.9Consumer Staples ................................................................................................................... 1.4Cash & Equivalents ................................................................................................................. 1.4Telecommunication Services .................................................................................................. 1.0Asset Backed .......................................................................................................................... 0.8Other Assets ........................................................................................................................... 0.5Health Care ............................................................................................................................. 0.3Private Placements ................................................................................................................. 0.1Warrants ................................................................................................................................. 0.1

During the six-month period the Fund’s exposure to currency risk changed significantly as disclosedin the section below. For details relating to other price risk, credit risk and interest rate risk, referto the audited annual financial statements as at March 31, 2009, as the Fund’s exposure to thoserisks remains unchanged.

Currency RiskThe tables below summarize the Fund's exposure to currency risk, net of derivative instruments,as applicable.

as at September 30, 2009Derivatives Total Currency Net

Exposure Exposure AssetsCurrency (in $000’s) (in $000’s) (%)US Dollar (591) 750 0.4Australian Dollar - 60 0.1Total (591) 810 0.5

as at March 31, 2009Derivatives Total Currency Net

Exposure Exposure AssetsCurrency (in $000’s) (in $000’s) (%)US Dollar - 381 0.2Total - 381 0.2

As at September 30, 2009, had the Canadian dollar strengthened or weakened by 10% in relationto all other foreign currencies held in the Fund, with all other variables held constant, net assetsof the Fund would have decreased or increased, respectively, by approximately $81,000 (March 31, 2009 - $38,000). In practice, the actual results may differ from this analysis and thedifference may be material.

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



1. THE FUNDS

The following funds are open-ended mutual fund trusts created under the laws of Ontario by declarations of trust.

Inception Date Inception Date Inception Date

of Class A Units of Class F Units of Class I Units

CI Funds

CI Alpine Growth Equity Fund May 1, 1997 December 13, 1999 May 31, 2006

CI American Equity Fund May 25, 1989 July 17, 2000 July 31, 2001

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 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

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 Bond Fund August 31, 1992 July 17, 2000 July 31, 2001

CI Global Fund February 28, 1986 July 17, 2000 July 31, 2001

CI Global High Dividend Advantage Fund January 20, 2006 January 20, 2006 May 15, 2006

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 Money Market Fund October 1, 1990 July 31, 2001 July 31, 2001

CI Pacific Fund October 31, 1981 July 17, 2000 July 31, 2005

CI US Money Market Fund January 30, 1995 – –

Portfolio Select Series

Select Canadian Equity Managed Fund – – November 27, 2006

Select Income Managed Fund – – November 27, 2006

Select International Equity Managed Fund – – November 27, 2006

Select Staging Fund November 7, 2005 November 7, 2005 July 16, 2007

Select U.S. 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 Bond Fund January 20, 1993 July 17, 2000 July 31, 2001

Signature Canadian Resource Fund April 11, 1997 July 31, 2001 August 28, 2009

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 Mortgage Fund May 1, 1993 December 13, 1999 August 28, 2006

Signature Select Canadian Fund May 13, 1998 July 17, 2000 July 31, 2001

Signature Short-Term Bond Fund May 31, 1976 November 17, 2000 November 1, 1996

CI Mutual FundsNotes to the Financial Statements as at September 30, 2009 (unaudited)

– 16 –Semi-Annual Financial Statements as at September 30, 2009

THE FUNDS (cont’d)

Inception Date Inception Date Inception Date

of Class A Units of Class F Units of Class I Units

Synergy Funds

Synergy American Fund August 31, 1992 July 17, 2000 July 31, 2001

Synergy Tactical Asset Allocation Fund September 18, 1998 November 13, 2000 August 22, 2002

Portfolio Series Funds

Portfolio Series Balanced Fund November 9, 1988 November 17, 2000 November 1, 1996

Portfolio Series Balanced Growth Fund December 17, 2001 December 17, 2001 November 8, 2005

Portfolio Series Conservative Balanced Fund December 17, 2001 December 17, 2001 October 31, 2005

Portfolio Series Conservative Fund December 1, 1997 November 17, 2000 December 1, 1997

Portfolio Series Growth Fund December 17, 2001 December 17, 2001 October 11, 2002

Portfolio Series Income Fund December 1, 1997 November 17, 2000 December 1, 1997

Portfolio Series Maximum Growth Fund December 17, 2001 December 17, 2001 October 31, 2005



The following Funds offered Insights units to investors commencing on July 15, 2003:

CI American Value Fund CI International Fund

CI Canadian Investment Fund CI International Value Fund

CI Global Bond Fund Signature Canadian Bond Fund

CI Global Fund Signature Corporate Bond Fund

CI Global Small Companies Fund Signature Select Canadian Fund

CI Alpine Growth Equity Fund, CI Canadian Small/Mid Cap Fund and Signature Mortgage Fund offered

Class B units to investors commencing on December 13, 1999.

Signature Dividend Fund offered Class X units and Class Y units to investors commencing

August 29, 2003.

Harbour Growth & Income Fund and Signature Dividend Fund offered Class Z units to investors

commencing on August 29, 2003.

Signature Select Canadian Fund and Signature Canadian Balanced Fund offered Class Z units to

investors commencing on August 2, 2005.

CI Money Market Fund offered Class M units to investors commencing October 18, 2005.

Select Staging Fund offered Class W units to investors commencing November 7, 2005.

On October 1, 2007 the following Funds issued T-Class units (also called the T-Class Securities).

The T-Class units are available in Class A, Class F, Class I and Class W units and unlike other classes

of units offered by the Funds; holders of T-Class securities receive regular monthly cash distributions.

The following Funds had T-Class units outstanding as at September 30, 2009:

Portfolio Series Balanced Fund - AT5, AT8, FT8

Portfolio Series Balanced Growth Fund - AT5, AT8

Portfolio Series Growth Fund - AT5, AT8

Portfolio Series Maximum Growth Fund - AT8

Signature Canadian Balanced Fund offered Class U and Y units to investors commencing

August 14, 2009.

Effective as of close of business on August 14, 2009 the following funds were merged:

Terminated Funds Continuing Funds

Knight Bain Canadian Bond Fund Signature Canadian Bond Fund

Knight Bain Corporate Bond Fund Signature Canadian Bond Fund

Knight Bain Diversified Monthly Income Fund Signature Global Income & Growth Fund

Knight Bain Pure Canadian Equity Fund Signature Select Canadian Fund

Knight Bain Small Cap Fund CI Can-Am Small Cap Corporate Class

Signature Canadian Asset Allocation Fund Signature Canadian Balanced Fund

Signature Long-Term Bond Fund Signature Canadian Bond Fund

Synergy Focus Canadian Equity Fund Synergy Canadian Corporate Class

Synergy Focus Global Equity Fund Synergy Global Corporate Class

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.

The Statement of Investment Portfolio and Schedule of Fees for each of the Funds are as at

September 30, 2009. The Statements of Net Assets are as at September 30, 2009 and March 31, 2009.

The Statements of Operations, Statements of Changes in Net Assets, Schedule of Fund Unit

Transactions and Schedule of Commissions for each Fund are for the periods ended September 30,

2009 and 2008. The Schedule of Net Assets Reconciliation and Schedule of Securities Lending are as

at September 30, 2009 and 2008. The Fund Specific Financial Instruments Risks for each of the Funds

are as at September 30, 2009 and March 31, 2009, were applicable.

2. SIGNIFICANT ACCOUNTING POLICIES

These financial statements have been prepared in accordance with Canadian Generally Accepted

Accounting Principles (“GAAP”). Significant accounting policies used in preparing the semi-annual

financial statements are consistent with those used in preparing the annual financial statements.

The semi-annual financial statements should be read in conjunction with the Funds’ March 31, 2009

annual financial statements.

(a) Valuation of Investments

Investments are categorized as held for trading in accordance with Section 3855, “Financial Instruments –

Recognition and Measurement” and are recorded at their fair value for financial reporting purposes.

Listed securities are valued based on the bid price for securities held long and the ask price for

securities held short on the financial reporting date. Unlisted securities are valued based on price

quotations from recognized investment dealers, or failing that, their fair value is determined by the

Manager on the basis of the latest reported information available. Fixed income securities, debentures,

money market investments and other debt instruments are valued at the bid quotation from recognized

investment dealers. Underlying funds are valued on each business day at their Net Asset Value as

reported by the fund manager.

The Canadian Securities Administrators (“CSA”) amended section 14.2 of National Instrument 81-106

on September 5, 2008. The amended section 14.2 requires the net asset value of an investment fund

to be calculated using the fair value of the fund's assets and liabilities. The adoption of Section 3855

results in a different valuation method for calculating net asset value for financial reporting purposes.

For the purpose of processing unitholder transactions, net asset value is calculated based on the

closing market price (referred to as “Net Asset Value”), while for financial statement purposes net

asset value is calculated based on bid/ask price (referred to as “Net Assets”). In accordance with

NI 81-106, a reconciliation between the Net Asset Value per unit and the Net Assets per unit is

disclosed in the Schedule of Net Assets Reconciliation as at September 30, 2009 and 2008.

The Portfolio Series Funds invest in units of other funds, “underlying funds”. As a result, the Section

3855 has no impact on the Funds’ valuation policies. The underlying funds will continue to be valued

at their net asset value as reported by the funds manager. The Funds’ investment transactions are not

subject to transaction costs.

(b) Forward Contracts

The Fund may enter into forward contracts. Forward foreign currency contracts are valued, using a bid

price on the related public exchange, on each valuation day according to the gain (loss) that would be

realized if the contracts were closed out.

All gains (losses) arising from forward foreign currency contracts are recorded as part of “Change in

unrealized appreciation (depreciation) of investments” in the Statements of Operations and “Unrealized

gain (loss) on derivative instruments” in the Statements of Net Assets until the contracts are closed out

or expire, at which time the gains (losses) are realized and reported as ”Realized gain (loss) on

investments” in the Statements of Operations.

(c) Futures Contracts

Futures contracts are valued on each valuation day using the bid/ask price posted on the related public

exchange. All gains or losses arising from futures contracts are recorded as part of “Change in

unrealized appreciation (depreciation) of investments” in the Statements of Operations until the

contracts are closed out or expired, at which time the gains (losses) are realized and reported as

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

(d) 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)

of investments” and in the Statements of Net Assets in “Investments sold short at fair value”.

When the short position is closed out, gains and losses are realized and included in “Realized gain

(loss) on investments”.

(e) Private Placements

Investment transactions are accounted for on the trade date for financial reporting purposes and any

The fair value of private placements are determined using indicative bid values obtained from

third-party broker-dealers. The broker-dealers determine the fair value using valuation models that are

based, in part, on assumptions that are not supported by observable market inputs. The indicative bid

values are independently assessed internally to ensure that they are reasonable. The fair values of

private placements are affected by the perceived credit risk of the issuers, predictability of cash flows

and the length of time to maturity.

(f) Options Contracts

Option contracts are valued each valuation day according to the gain or loss that would be realized

if the contracts were closed out. All gains or losses arising from option contracts are recorded as part

of “Change in unrealized appreciation (depreciation) of investments” until the contracts are closed out

or expire, at which time the gains (losses) are realized and reflected in the Statement of Operations in

“Realized gain (loss) on investments”.

Over-the-counter options are valued using the Black & Scholes model, whereas, exchange traded

options are valued at bid/ask price taken from the exchange.

(g) Equity swaps

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

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

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

The indicative bid values are independently assessed internally to ensure that they are reasonable.

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

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

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

3. UNITHOLDERS’ EQUITY

Units issued and outstanding represent the capital of each Fund.

Each Fund is authorized to issue an unlimited number of redeemable, transferable units of each class.

Generally the Funds have no restrictions or specific capital requirements, except for the minimum

subscription/ redemption amounts. The relevant changes pertaining to subscription and redemption of

each Fund units are disclosed in the Statements of Changes in Net Assets. In accordance with the

objectives and risk management polices outlined in Note 11, the Funds endeavor to invest subscriptions

received in appropriate investments while maintaining sufficient liquidity to meet redemptions through

utilizing a short-term borrowing facility or disposal of investments when necessary.



The unitholder transactions are processed based on net asset value which is calculated daily based on

the closing market price on that day.

4. INCOME TAXES

The Funds qualify as mutual fund trusts under the provisions of the Income Tax Act (Canada) and are not

subject to tax on net income, including net realized 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.

Non-capital losses arising in taxation years up to 2003 may be carried forward seven years. Non-capital

losses arising in taxation years 2004 and 2005 may be carried forward ten years. Non-capital losses

arising in taxation years after 2005 may be carried forward twenty years.

5. 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 day-to-day operations of the Funds including management of the

investment portfolios of the Funds.

The management fee is calculated based on the net asset values of each class of a Fund (other than

Class I) at the end of each business day.

Investors in Class I units are charged a management fees directly as negotiated between the investor

and the Manager.

Effective July 1, 2009 the Manager reduced the annual management fees of Signature Corporate

Bond Fund to 1.70% from 2.0% for Class A, and to 0.85% from 1.50% for Class F.

During the period ended September 30, 2009, the Manager of the Fund absorbed total of $1,871,000

and U.S. $123,000 in Management Fees due to the declining yields generated by the following funds

CI Money Market Fund and CI US Money Market Fund, respectively.

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 a Fund (other than Class I or M) 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.

During the reporting period the Fund may receive management fee rebates from the Underlying Funds.

The management fee rebates are included in “Management fee rebate receivable” and in “Management

fee rebate” as reflected in the Statements of Net Assets and Statements of Operations of each Fund,

as applicable. However, upon the Manager’s discretion the management fee rebate may from time to

time be netted against management fees expenses.

6. 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 Statements of Net Assets in “Cash collateral received for securities on loan“ or

”Payable for cash collateral under securities lending”.

7. REINVESTMENT OF DISTRIBUTIONS

When a Fund pays a distribution to a unitholder, it will be paid in the same currency in which the units

are held. Distributions are automatically reinvested without charge in the same Fund or paid out in

cash to the unitholder. The Manager may change the distribution policy at its discretion.

8. RELATED PARTY TRANSACTIONS

On October 6, 2008 Sun Life Financial Inc. sold its significant interest in CI Financial Corp. to The Bank

of Nova Scotia. As CI Financial Corp. is the parent company of the Manager, The Bank of Nova Scotia

therefore is considered a related party to the Funds. The Bank of Nova Scotia did not hold investments

in the Funds as at September 30, 2009.

The Funds paid the following broker commissions to Bank of Nova Scotia, a related company to

CI Financial Corp., and to Dundee Corporation, a related company to Bank of Nova Scotia.

Bank of Nova Scotia Dundee Corporation

2009 2009

Fund ($) ($)

CI Alpine Growth Equity Fund 1,870 -

CI Canadian Investment Fund 95,486 9,419

CI Canadian Small/Mid Cap Fund 24,523 -

Select Canadian Equity Managed Fund 3,566 350

Select Income Managed Fund 460 404

Harbour Growth & Income Fund 21,500 -

Signature Canadian Balanced Fund 56,345 -

Signature Canadian Resource Fund 5,264 -

Signature Dividend Fund 50,568 -

Signature High Income Fund 28,296 15,420

Signature Income & Growth Fund 83,256 2,426

Signature Select Canadian Fund 215,062 -

Synergy Tactical Asset Allocation Fund 5,929 110

Blackmont Capital Inc. is a subsidiary of CI Financial Corp. As CI Financial Corp., is the parent company

of the Manager of the Funds, Blackmont Capital Inc. is thus considered a related party to the Funds.




– 20 –

The Funds paid the following brokerage commissions to Blackmont Capital Inc., an affiliated company

of CI Investments Inc. during the periods ended September 30:

2009 2008

Fund ($) ($)

CI Canadian Investment Fund 32,863 -

CI Canadian Small/Mid Cap Fund 24,654 12,911

CI International Fund - 1,278

Select Canadian Equity Managed Fund 1,086 244

Select Income Managed Fund 689 115

Harbour Fund 8,000 12,000

Harbour Growth & Income Fund 12,000 14,500

Signature Canadian Balanced Fund 4,551 5,676

Signature Canadian Resource Fund 16,617 15,401

Signature Dividend Fund 975 2,159

Signature Global Income & Growth Fund 18 43

Signature High Income Fund 24,429 18,808

Signature Income & Growth Fund 9,206 8,751

Signature Select Canadian Fund 15,440 23,321

Synergy Tactical Asset Allocation Fund 582 469

9. FUTURE ACCOUNTING STANDARDS

“International Financial Reporting Standards”

On February 13, 2008, the Canadian Accounting Standards Board (“AcSB”) confirmed that the use of

International Financial Reporting Standards (“IFRS”) will be required in 2011 for all publicly accountable

profit-oriented enterprises. IFRS will replace Canadian Generally Accepted Accounting Principles

(“GAAP”). IFRS becomes effective for interim and annual financial statements relating to fiscal years

beginning on or after January 1, 2011.

At September 30, 2009, the Manager is taking the following steps to transition to IFRS:

•Identification of areas where changes in disclosure will be required under IFRS standards.

• Identification of operational areas impacted by the adoption of IFRS.

• Identification of major differences between current accounting policies and IFRS standards.

• Assessment of impact, if any, on net asset value per unit.

• Assessment of current reporting systems and their readiness for IFRS implementation.

• Implementation of an IFRS transition plan.

As at September 30, 2009, the Manager has determined that there is no expected impact to net asset

value per unit as a result of the transition to IFRS.

Amendments to Section 3862, “Financial Instruments - Disclosures”

Section 3862 was recently amended and requires publicly accountable enterprises to enhance

their disclosures about fair value measurements and the liquidity risk of financial instruments.

The amendments will be effective for annual financial statements relating to fiscal years ending

after September 30, 2009, specifically the March 31, 2010 financial statements of the Funds.

These amendments have been made to address the need for increased consistency and comparability

in fair value measurements, and to expand the disclosure surrounding fair value measurements, and

do not have any impact on the net assets of the Funds.

10. FINANCIAL INSTRUMENTS

The categorization of financial instruments in accordance with CICA 3855, Financial Instruments –

Recognition and Measurement (“CICA 3855”) are as follows: financial assets and financial liabilities

held for trading which include investments and derivative instruments are stated at fair value.

Due from brokers, interest and dividends receivable, subscriptions receivable and other receivables are

designated as loans and receivables. They are recorded at amortized cost which approximates their

fair value due to their short term nature. Similarly, redemptions payable, due to brokers, accrued

management fees, accrued expenses and other payables are designated as other liabilities and are

carried at their amortized cost which approximates their fair value, due to their short term nature.

11. FINANCIAL INSTRUMENTS RISK

Risk Management

The Funds are exposed to a variety of financial instruments risks: credit risk, liquidity risk and market risk

(including interest rate risk, currency risk and other price risk). The level of risk to which each Fund is

exposed depends on the investment objective and the type of investments the Fund holds. The value of

the investments within the portfolio can fluctuate daily as a result of changes in prevailing interest rates,

economic and market conditions and company specific news related to investments held by the Funds.

The Manager of the Funds may minimize potential adverse effects of these risks on the Funds’

performance by, but not limited to, regular monitoring of the Funds’ positions and market events,

diversification of the investment portfolio by asset type, country, sector, term to maturity within the

constraints of the stated objectives, and through the usage of derivatives to hedge certain risk exposures.

During the six-month period some Funds’ exposure to financial instruments risks changed significantly

as per details disclosed in the "Fund Specific Financial Instruments Risks" section of the financial

statements. For details relating to financial instruments risks exposure for remaining Funds, refer to the

audited annual financial statements as at March 31, 2009, as these Funds’ exposure to financial

instruments risks remained unchanged through the period.

Other Price Risk

Other price risk is the risk that the value of financial instruments will fluctuate as a result of changes

in market prices (other than those arising from interest rate risk or currency risk). The value of each

investment is influenced by the outlook of the issuer and by general economic and political conditions,

as well as industry and market trends. All securities present a risk of loss of capital. Except for options

written, future contracts sold short and investments sold short, the maximum risk resulting from

financial instruments is equivalent to their fair value.

Other assets and liabilities are monetary items that are short-term in nature and therefore are not

subject to significant other price risk.

Interest Rate Risk

Interest rate risk is the risk that the fair value of interest-bearing investments will fluctuate due to

changes in prevailing levels of market interest rates. As a result, the value of the Funds that invest in

debt securities and income trusts will be affected by changes in applicable interest rates. If interest

rates fall, the fair value of existing debt securities may increase due to the increase in yield. On the

other hand, if interest rates rise, the yield of existing debt securities decrease which may then lead to

a decrease in their fair value. The magnitude of the decline will generally be greater for long-term debt

securities than for short-term debt securities.


Interest rate risk also applies to Funds that invest in convertible securities. The fair value of these

securities varies inversely with interest rates, similar to other debt securities. However, since they may

be converted into common shares, convertible securities are generally less affected by interest rate

fluctuations than other debt securities.

All fixed income securities rated BBB/Baa/B++ or above are considered investment grade and have a

lower credit risk than below investment grade bonds.

The Portfolio Series Funds invest only in units of underlying funds and may be exposed to indirect

interest rate risk in the event that the underlying fund invests in interest bearing financial instruments.

Currency Risk

Currency risk arises from financial instruments that are denominated in a currency other than the

functional currency of the Funds. As a result, the Funds may be exposed to the risk that the value

of securities denominated in other currencies will fluctuate due to changes in exchange rates.

The Statement of Investment Portfolio identifies all bonds and derivative instruments denominated in

foreign currencies, if applicable. Equities traded in foreign markets are also exposed to currency risk

as the prices denominated in foreign currencies are converted to the Funds’ functional currency to

determine their fair value.


currency risk in the event that the underlying fund invests in financial instruments that are denominated

in a currency other than the functional currency of the Fund.

Credit Risk

Credit risk is the risk that a security issuer or counterparty to a financial instrument will fail to meet

its financial obligations. The fair value of a debt instrument includes consideration of the credit

worthiness of the debt issuer. The carrying amount of debt instruments as presented on the Statement

of Investment Portfolio represent credit risk exposure of each Fund. Credit risk exposure for derivative

instruments is based on each Fund’s unrealized gain on the contractual obligations with the counterparty

as at the reporting date. The credit rating of a counterparty to derivative instrument is disclosed in

Statement of Investment Portfolio of each Fund, if applicable.

Credit ratings for debt securities, preferred securities and derivative instruments are obtained from

Standard & Poor’s, otherwise ratings are obtained from: Moody's Investors Service, Dominion Bond

Rating Services and Canadian Bond Rating Services, respectively.

Credit ratings can be either long-term or short-term. Short-term credit ratings are generally assigned

to those obligations and derivative instruments considered short-term in nature. The table below

provides a cross-reference between the long-term credit ratings disclosed in the Credit Rating table

inclusive of the short-term credit ratings disclosed in Schedule A, if applicable.

Credit Rating as per Credit Risk table Credit Rating as per Schedule A

AAA/Aaa/A++ A-1+

AA/Aa/A+ A-1, A-2, A-3

A B, B-1

BBB/Baa/B++ B-2

BB/Ba/B+ B-3

B C

CCC/Caa/C++ -

CC/Ca/C+ -

C and Lower D

Not Rated WR

The credit risk exposure of the Fund’s other assets are represented by their carrying amount as

disclosed in the Statements of Net Assets.

Significant cash balances may be maintained at the custodian and the manager monitors the credit

worthiness of the custodian on an regular basis.

All transactions executed by a Fund in listed securities are settled / paid for upon delivery using

approved brokers. The risk of default is considered minimal, as delivery of securities sold is only made

once the broker has received payment. Payment is made on a purchase once the securities have been

received by the broker. The trade will fail if either party fails to meet its obligation.


credit risk in the event that the underlying fund invests in debt instruments, preferred securities

and derivatives.

Liquidity Risk

Liquidity risk is the risk that the Funds may not be able to settle or meet their obligations, on time or

at a reasonable price. The Funds are exposed to daily cash redemption of redeemable units. Therefore,

the Funds aim to invest the majority of their assets in investments that are traded in active markets

and can be readily disposed of. In addition, the Funds aim to retain sufficient cash and cash

equivalents positions to maintain liquidity. From time to time, the Funds may enter into derivative

contracts or invest in unlisted securities that may not trade in an organized market and may be illiquid.

Illiquid securities are identified in the Statement of Investment Portfolio of each Fund, if applicable.



Semi-Annual Financial Statements as at September 30, 2009 – 22 –

Legal Notice

Notice: Should you require additional copies of this Semi-Annual Report or have received more than one

copy, please contact CI Investments Inc. (the “Manager”) or your financial advisor.

Commissions, trailing commissions, management fees and expenses all maybe associated with mutual fund

investments. Please read the prospectus before investing. Unless otherwise indicated and except for

returns for periods less than one year, the indicated rates of return are the historical annual compounded

total returns including changes in security value. All performance data assume reinvestment of all

distributions or dividends and do not take into account sales, redemption, distribution or optional charges or

income taxes payable by any securityholder that would have reduced returns. Mutual funds are not

guaranteed, their values change frequently and past performance may not be repeated. Mutual fund

securities are not covered by the Canada Deposit Insurance Corporation or by any other government

deposit insurer.

The commentaries contained herein are provided as a general source of information and should not be

considered personal investment advice or an offer or solicitation to buy or sell securities. Every effort has

been made to ensure that the material contained in these commentaries is accurate at the time of

publication. However, the Manager cannot guarantee its accuracy or completeness and accepts no

responsibility for any loss arising from any use of or reliance on the information contained herein.

®CI Funds, CI Investments, CI Investments design, Harbour Funds, Global Managers and American

Managers are registered trademarks of CI Investments Inc. ™The Portfolio Select Series and Signature Funds are trademarks of CI Investments Inc.

SYNERGY_SA-09-09E

2 Queen Street East, Twentieth Floor, Toronto, Ontario M5C 3G7 I www.ci.comHead Office / Toronto416-364-1145 1-800-268-9374

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