semi-annual financial statement– as at september 30, 2010 · statement of investment portfolio as...

Semi-Annual Financial Statement – as at September 30, 2010

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

About the CI Funds Board of Governors and

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

Equity Funds

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

Balanced Funds

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

Notes to the Financial Statements ......................................................................................17

Legal Notice............................................................................................................................23

A look inside

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

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

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

disclosed in an accompanying notice.

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

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

Accountants.

– 1 –

Enclosed are the Financial Statements for your CI Investments

mutual funds for the period ending September 30, 2010. Inside is

important information about each fund, including its financial

statements for the period and a list of the top portfolio holdings of

the underlying fund as of the end of the year.

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 $64 billion on behalf of 1.7 million Canadians.

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

firm with $86 billion in fee-earning assets at September 30, 2010.

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 –

About the CI Funds Board of Governors

Semi-Annual Financial Statements as at September 30, 2010

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.

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

period ended September 30, 2010 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 2009 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 2009, 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 2009. In November 2010, the Board of Governors received and accepted the Semi-Annual

Financial Statements of the Funds.

Stuart P. Hensman

Chair, Board of Governors

November, 2010

Letter from the CI Funds Board of Governors

– 3 –

Synergy American FundStatement of Investment Portfolio as at September 30, 2010 (unaudited)

CIG - 622Semi-Annual Financial Statements as at September 30, 2010

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

INDUSTRIALS (11.6%) 7,100 Alaska Air Group Inc. 318,551 372,819 9,600 AO Smith Corp. 534,385 571,859 9,800 Cummins Inc. 573,131 912,416

11,900 Deere & Co. 729,727 854,461 11,700 Eaton Corp. 941,694 993,239 11,700 Emergency Medical Services Corp. 598,070 639,887 10,700 General Dynamics Corp. 741,288 690,674 12,000 Goodrich Corp.* 814,458 910,169 17,400 Hubbell Inc., Class B 849,787 908,477 23,200 Kansas City Southern de Mexico 875,236 893,079 16,600 Republic Services Inc. 517,197 520,469 25,000 Union Pacific Corp. 1,425,283 2,102,756

8,918,807 10,370,305 CONSUMER STAPLES (10.0%)

43,200 Altria Group Inc. 944,474 1,067,753 34,200 Archer-Daniels-Midland Co. 997,851 1,123,319 8,500 Colgate-Palmolive Co. 719,649 672,254

12,800 Energizer Holdings Inc. 871,045 885,497 16,400 Kellogg Co. 878,470 851,878 19,200 Kraft Foods Inc., Class A 602,234 609,693 19,500 Kroger Co. 441,449 434,417 9,300 Lance Inc.* 220,546 203,451

11,300 Mead Johnson Nutrition Co. 616,343 661,498 11,700 PepsiCo Inc. 746,441 799,768 19,100 The Hershey Co. 928,992 935,326 11,000 The J. M. Smucker Co. 643,302 684,798

8,610,796 8,929,652 CONSUMER DISCRETIONARY (9.9%)

11,400 Advance Auto Parts Inc. 600,914 688,350 23,900 Cablevision Systems Corp. 620,154 642,370 39,500 CBS Corp., Class B 591,778 644,636 19,200 Dollar Tree Stores Inc. 682,411 963,339 6,200 Lear Corp. 493,248 503,492

25,200 Limited Brands Inc. 652,943 694,425 9,800 McDonald's Corp. 464,086 751,170

19,000 OfficeMax Inc. 216,118 255,726 5,900 Panera Bread Co., Class A 531,405 537,959

10,800 Target Corp. 603,263 593,443 13,300 The Men's Wearhouse Inc. 318,818 325,171 14,700 TRW Automotive Holdings Corp. 485,125 627,437 25,200 Wyndham Worldwide Corp. 594,095 712,317 18,800 Yum! Brands Inc. 785,051 890,457

7,639,409 8,830,292 HEALTH CARE (8.7%)

31,300 AmerisourceBergen Corp. 948,698 987,485 15,200 Celgene Corp. 859,951 901,064 9,600 Cephalon Inc. 756,713 616,806

18,000 Express Scripts Inc. 917,909 902,019 18,600 Humana Inc. 936,340 960,221 25,000 LifePoint Hospitals Inc. 898,935 901,916 14,300 Talecris Biotherapeutics Holdings Corp. 301,960 336,230 16,000 Teva Pharmaceutical Industries Ltd., ADR 883,267 868,474 18,000 Thermo Fisher Scientific Inc. 864,125 886,831 12,100 UnitedHealth Group Inc. 445,144 437,150

7,813,042 7,798,196

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

INFORMATION TECHNOLOGY (18.0%) 20,700 Akamai Technologies Inc. 604,218 1,068,420 7,800 Apple Computer Inc. 1,480,441 2,277,428

23,800 Aruba Networks Inc.* 326,846 521,885 21,300 BMC Software Inc. 844,461 887,226 16,700 Broadcom Corp. 573,924 607,979 67,700 Cisco Systems Inc. 1,697,518 1,525,622 6,300 Citrix Systems Inc. 373,421 442,378 9,700 Cree Inc.* 647,999 541,883

58,800 EMC Corp. 1,092,389 1,228,252 7,300 F5 Networks Inc. 394,389 779,337 1,700 Google Inc., Class A 981,518 919,762 8,300 International Business Machines Corp. 1,108,149 1,145,732

17,900 Intuit Inc. 819,597 806,939 13,300 Lam Research Corp. 447,696 572,745 16,400 Omnivision Technologies Inc. 401,050 388,306 36,900 QUALCOMM Inc. 1,607,277 1,713,206 28,500 Skyworks Solutions, Inc. 613,942 606,177 26,600 Sonus Networks Inc. 82,167 96,347

14,097,002 16,129,624 FINANCIALS (14.2%)

14,200 ACE Ltd. 855,750 851,135 65,100 Bank of America Corp. 1,049,589 877,539 3,000 BlackRock Inc. (USD)* 529,485 525,560

17,000 Capital One Financial Corp.* 701,925 690,797 31,600 CB Richard Ellis Group Inc. 557,614 594,398 20,700 Comerica Inc. 812,390 790,239 9,500 Goldman Sachs Group Inc. 1,395,144 1,412,458 4,600 IntercontinentalExchange Inc. 562,772 495,680

56,100 JPMorgan Chase & Co. 2,410,924 2,195,925 9,500 Prudential Financial Inc. 512,427 529,146

11,000 Reinsurance Group of America Inc.* 524,584 546,480 19,300 TCF Financial Corp. 304,484 321,528 32,700 The Progressive Corp. 680,832 701,565 10,000 Visa Inc., Class A 740,867 763,001 53,600 Wells Fargo & Co. 1,498,926 1,384,372

13,137,713 12,679,823 ENERGY (13.1%)

47,200 Athabasca Oil Sands Corp. 836,137 488,520 31,200 Baytex Energy Trust 809,737 1,164,117 12,400 Chevron Corp. 980,839 1,034,163 11,400 Concho Resources Inc. 500,467 776,212 24,100 Forest Oil Corp. 712,932 736,525 84,500 Gran Tierra Energy Inc. 528,018 669,517 16,000 Murphy Oil Corp. 955,450 1,019,448 27,900 Noble Energy Inc. 1,783,682 2,155,760 6,700 Occidental Petroleum Corp. 563,644 539,753 9,300 Petrominerales Ltd.* 234,883 231,756

21,200 Pioneer Natural Resources Co. 1,177,438 1,418,612 14,700 Southwestern Energy Co. 513,102 504,914 12,400 Unit Corp. 575,565 475,804 5,400 Whiting Petroleum Corp. 538,943 530,154

10,710,837 11,745,255


– 4 –

Synergy American FundStatement of Investment Portfolio as at September 30, 2010 (unaudited)



Schedule AForeign Currency Forward Contracts (0.1%)

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

1 Canadian Imperial Bank of Commerce A-1 03-Nov-10 1.03 (19,507,780) US $ 20,156,609 Canadian $ 68,342

Total Foreign Currency Forward Contracts Value 68,342

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

WARRANTS (0.1%) 8,300 PNC Financial Services Group Inc. 161,894 89,592

Commission and other portfolio transaction costs (86,926)

Total Equities (95.4%) 78,984,046 85,353,203

DERIVATIVE INSTRUMENTS

Foreign Currency Forward Contracts (0.1%) (see Schedule A) 68,342

Total Investments (95.5%) 78,984,046 85,421,545

Other Assets (net) (4.5%) 4,008,702

Net Assets (100.0%) 89,430,247


MATERIALS (4.5%) 12,800 Agnico-Eagle Mines Ltd. 929,490 934,626 6,900 Agrium Inc. 433,459 531,645

12,700 Albemarle Corp. 574,791 611,725 12,900 Kinross Gold Corp. 252,221 249,154 13,500 Rockwood Holdings Inc. 343,416 436,470 15,700 Silgan Holdings Inc. 496,400 512,122 17,200 Temple-Inland Inc. 330,876 330,259 8,500 The Scotts Miracle-Gro Co. 398,365 452,455

3,759,018 4,058,456 TELECOMMUNICATION SERVICES (3.3%)

16,900 Qwest Communications International Inc. 110,283 109,036 39,500 SBA Communications Corp.* 1,259,097 1,638,009 19,600 Syniverse Holdings Inc. 460,016 457,216 22,100 Verizon Communications Inc. 640,584 741,124

2,469,980 2,945,385 UTILITIES (2.0%)

27,300 Edison International 963,646 965,509 19,100 Pinnacle West Capital Corp. 788,828 811,114

1,752,474 1,776,623


– 5 –

Synergy American FundFinancial Statements (unaudited)


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

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

LiabilitiesBank overdraftManagement fees payableAccrued expensesUnrealized loss on futures and forward currency contractsSwaps, swaptions and options at fair valuePayable for securities purchasedPayable for unit redemptionsPayable for cash collateral under securities lending (Note 6)Investments sold short at fair value**Distributions payable

Net assets and unitholders' equity

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

Net assets per classClass AClass FClass I

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

Class AClass FClass I

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


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

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

Net investment income (loss) for the period

Realized and unrealized gain (loss) on investments and commissions and other portfolio transaction costs

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

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

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

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


85,353 91,1314,289 2,339

- -- -- -- -

68 248- -- -

77 731,053 2,571

- -75 81

90,915 96,443

- -- -- -- -- -

1,213 2,324272 217

- -- -- -

1,485 2,54189,430 93,902

78,984 84,196- -

54,501 59,105841 989

34,088 33,808

10.04 10.356.00 6.15

11.66 11.87

5,426,722 5,711,877139,996 160,749

2,922,867 2,847,211

575 1,6851 133 21- -- -- -

(73) (224)506 1,495

552 58758 62

- -47 32

657 681(151) 814

(1,277) 2,9485 (471)

(171) (497)- -

(744) 18,765(2,187) 20,745(2,338) 21,559

(1,738) 4,657(22) 92

(578) 16,810

(0.32) 0.78(0.16) 0.50(0.19) 1.02

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

2010 2009

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

as at as atSeptember 30, 2010 March 31, 2010

– 6 –

Synergy American FundFinancial Statements (unaudited)



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




33,808 172,530

21,896 9,681- -

(21,038) (5,917)858 3,764

- -- -- -- -

(578) 16,81034,088 193,104

93,902 230,002

28,480 17,057- -

(30,614) (14,621)(2,134) 2,436

- -- -- -- -

(2,338) 21,55989,430 253,997

59,105 56,442

6,458 7,124- -

(9,324) (8,414)(2,866) (1,290)

- -- -- -- -

(1,738) 4,65754,501 59,809

989 1,030

126 252- -

(252) (290)(126) (38)

- -- -- -- -

(22) 92841 1,084

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

2010 2009

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

2010 2009

– 7 –

Synergy American FundFinancial Statements – Supplementary Schedules (unaudited)


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

Class 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)

2010 2009

LoanedCollateral (non-cash)

4,546 19,5914,636 19,983

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

2010 2009

Brokerage commissionsSoft Dollar commissions†

170 49619 61

Schedule of Fund Unit Transactions for the periods ended September 30

2010 2009

5,711,877 6,074,498655,216 739,932

- -(940,371) (872,762)

5,426,722 5,941,668

160,749 186,41021,263 43,659

- -(42,016) (49,952)139,996 180,117

2,847,211 16,174,2041,973,289 874,993

- -(1,897,633) (531,680)2,922,867 16,517,517

Annual management fee rateClass AClass FClass I

Annual fixed administration fee rateClass AClass FClass I

2.001.00

Paid directly by investors

0.210.21

-

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

2010

Class ANet assets per unitNet asset value per unit

Class FNet assets per unitNet asset value per unit

Class INet assets per unitNet asset value per unit

10.04 10.0710.05 10.08

6.00 6.026.01 6.02

11.66 11.6911.67 11.70

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

2010 2009

– 8 –

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



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

as at March 31, 2010

Categories Net Assets (%)

Information Technology ........................................................................................................... 19.5 Financials ................................................................................................................................. 15.2 Industrials ................................................................................................................................ 12.0 Energy ...................................................................................................................................... 11.1 Health Care .............................................................................................................................. 10.7 Consumer Discretionary........................................................................................................... 10.6 Consumer Staples.................................................................................................................... 9.8 Materials.................................................................................................................................. 4.1 Other Assets (net) .................................................................................................................... 2.7 Telecommunication Services ................................................................................................... 2.3 Utilities..................................................................................................................................... 1.7 Foreign Currency Forward Contracts ....................................................................................... 0.3

For details relating to other price risk, credit risk, currency risk, interest rate risk and fair valuehierarchy, refer to the audited annual financial statements as at March 31, 2010, as the Fund'sexposure to those risks remains unchanged.

– 9 –

Synergy Tactical Asset Allocation FundStatement of Investment Portfolio as at September 30, 2010 (unaudited)

CIG - 6115Semi-Annual Financial Statements as at September 30, 2010

††CI Investments Inc., the Manager, is a corporation controlled by CI Financial Corp. Bank of Nova Scotia has a significant interest in CI Financial Corp. Investments in Bank of Nova Scotia are identified above.*Denotes all or part of securities on loan.Percentages shown in brackets relate investments at fair value to net assets of the Fund. The accompanying notes are an integral part of these financial statements.

FINANCIALS (19.3%) (cont’d)

200,000 Manulife Financial Capital Trust6.7% 06/30/2012 207,075 211,534

42,425 Manulife Financial Corp. 768,551 550,676 545,000 Merrill Lynch & Co., Inc., 4.5% 01/30/2012 507,025 555,196 300,000 Merrill Lynch Canada Finance Co.,

5.8% 05/05/2011 299,958 305,655 300,000 MI Developments Inc., 6.05% 12/22/2016 305,352 298,390

1,900 National Bank of Canada 89,227 123,291 150,000 National Bank of Canada 4.456% 11/02/2016 150,000 153,757

USD 500,000 National Money Mart Co., 10.375% 12/15/2016 536,414 547,941 1,800 Parkbridge Lifestyles Communities Inc. 9,297 10,044

32,823 Power Corp. of Canada 896,720 879,000 225,000 Power Corp. of Canada 7.57% 04/22/2019 224,874 272,159

1,800 Primaris Retail REIT 31,191 35,046 USD 1,000,000 Riocan Real Estate Investment

4.1% 09/21/2015 1,032,118 1,045,266 445,000 Royal Bank of Canada 3.27% 11/10/2014 444,938 458,777 210,000 Royal Bank of Canada 5.06% 07/17/2013 210,179 226,905 110,000 Royal Bank of Canada 5.2% 08/15/2012 112,301 116,903 46,112 Royal Bank of Canada* 2,320,628 2,471,142

290,000 Scotiabank Capital Trust, Series 2002-1,Callable, 6.626% 06/30/2052†† 284,643 310,056

38,300 Sun Life Financial Inc. 1,106,366 1,027,589 350,000 Sun Life Financial Inc., 5% 07/11/2031 349,433 356,863 200,000 Sun Life Financial Inc., 7.9% 03/31/2019 199,732 230,054 150,000 TD Capital Trust 10% 06/30/2108 150,000 201,008 355,000 TD Capital Trust 6.792% 12/31/2049 355,825 386,540 250,000 TD Capital Trust 7.243% 12/31/2018 257,500 299,746 11,000 TMX Group Inc.* 315,745 347,820 51,625 Toronto-Dominion Bank* 3,454,196 3,835,738

230,000 Wells Fargo Financial Canada Corp.,3.97% 11/03/2014 229,991 239,783

31,763,559 33,355,879 MATERIALS (11.6%)

8,925 Agnico-Eagle Mines Ltd.* 564,760 651,346 17,100 Agrium Inc. 955,357 1,317,555 3,600 Alamos Gold Inc.* 29,569 63,036

25,100 Anvil Mining Ltd.* 69,419 85,842 6,300 Aurizon Mines Ltd. 43,894 44,730

20,700 B2Gold Corp. 39,013 39,744 17,000 Banro Corp. 37,779 39,780 52,470 Barrick Gold Corp.* 2,266,295 2,494,424

USD 170,000 Buckeye Technologies Inc., 8.5% 10/01/2013 186,073 177,116 16,925 Cameco Corp. 437,284 483,209

150,000 Cameco Corp., 5.67% 09/02/2019 153,063 163,828 1,000,000 Canexus Income Fund 5.75% 12/31/2015 1,000,000 1,000,000

1,300 Canfor Pulp Income Fund 9,073 18,733 750,000 Cascades Inc., 7.75% 12/15/2016 759,062 768,125

4,300 CCL Industries Inc., Class B 116,960 124,528 8,900 Centerra Gold Inc. 87,964 147,740

USD 500,000 Century Aluminum Co., 8% 05/15/2014 501,602 508,067 USD 750,000 CF Industries Inc., 6.875% 05/01/2018 813,975 830,594

50,300 CGA Mining Ltd. 109,608 137,822 3,200 Cline Mining Corp. 4,736 6,656

USD 500,000 Compass Minerals International Inc.,8% 06/01/2019 528,005 543,439


FUNDS (29.6%) 4,891,310 Synergy Global Corporate Class Z Shares 59,795,003 51,065,278

FINANCIALS (19.3%) AUD 1,883,000 Ally Credit Canada Ltd., 7.125% 09/13/2011 1,885,520 1,835,520

160,000 American Express Canada 4.7% 05/20/2011 159,987 162,604 2,200 Artis REIT 24,918 30,250

78,100 Bank of America Corp. 1,102,012 1,052,777 USD 300,000 Bank of America Corp., Callable,

8% 01/30/2049 295,265 318,436 325,000 Bank of Montreal 5.18% 06/10/2015 324,850 360,418 39,875 Bank of Montreal* 2,016,814 2,371,765 14,249 Bank of Nova Scotia†† 648,729 782,555

450,000 Bank of Nova Scotia 3.43% 07/16/2014†† 454,005 465,883 155,000 Bank of Nova Scotia 5.04% 04/08/2013†† 152,915 166,267 320,000 Bank of Nova Scotia 6% 10/03/2018†† 320,602 351,850 300,000 Bear Stearns Co., Inc., 4.3% 01/12/2011 304,515 302,084 375,000 BNS Capital Trust, Callable 7.31% 12/31/2049†† 387,709 379,767 350,000 Brookfield Asset Management Inc.,

8.95% 06/02/2014 349,307 411,126 175,000 Calloway REIT 10.25% 04/14/2014 175,000 210,693 380,000 Canadian Imperial Bank of Commerce

3.05% 06/03/2013 379,799 389,237 14,200 Canadian Imperial Bank of Commerce* 1,039,878 1,059,036

800 Canadian REIT 23,406 24,984 3,294 Canadian Western Bank* 57,390 81,823 4,200 Chartwell Seniors Housing REIT 22,467 37,674 1,983 CIT Group Inc. 71,189 83,273

USD 23,040 CIT Group Inc., 7% 05/01/2013 28,793 23,827 USD 34,561 CIT Group Inc., 7% 05/01/2014 42,960 35,474 USD 34,561 CIT Group Inc., 7% 05/01/2015 41,466 35,296 USD 57,602 CIT Group Inc., 7% 05/01/2016 66,431 58,383 USD 80,643 CIT Group Inc., 7% 05/01/2017 92,198 81,218

345,000 Citigroup Finance Canada Inc.,6.75% 09/22/2014 344,696 377,314

525,000 Commerzbank AG, FRN, 4.5% 12/15/2016 523,761 483,786 USD 1,500,000 Couche-Tard Finance Corp., Callable,

7.5% 12/15/2013 1,582,326 1,566,648 USD 542,157 CW Media Holdings Inc., 13.5% 08/15/2015 647,602 637,375

250,000 First Capital Realty Inc., 5.34% 04/01/2013 250,295 262,441 160,000 First Captial Realty Inc., 5.49% 12/01/2011 160,408 164,684

1,000,000 Ford Credit Canada Ltd., 7.5% 08/18/2025 1,000,000 1,049,188 4,600 Genworth MI Canada Inc. 92,264 117,944

700 Gluskin Sheff & Associates Inc. 13,096 12,782 2,500 H&R REIT 32,756 49,225 6,500 Home Capital Group Inc. 240,447 289,055 9,275 IGM Financial Inc.* 367,000 386,675 5,100 Industrial Alliance Insurance and Financial

Services Inc. 180,786 161,109 4,800 InnVest REIT 30,682 34,320

12,000 Intact Financial Corp. 430,926 547,320 USD 175,000 JPMorgan Chase & Co., FRN, Callable,

7.9% 04/30/2049 167,249 192,973 3,300 Killam Properties Inc. 20,960 32,043

350,000 Kimco North Trust III 5.18% 08/16/2013 349,044 364,382 400 Laurentian Bank of Canada 11,857 17,516


– 10 –




INDUSTRIALS (8.5%) (cont’d)

12,800 Finning International Inc. 260,058 306,048 250,000 Finning International Inc., 5.16% 09/03/2013 249,985 268,011 280,000 FortisAlberta Inc., 5.33% 10/31/2014 294,448 310,546

USD 500,000 Gardner Denver Inc., 8% 05/01/2013 526,093 524,789 USD 500,000 Gibraltar Industries Inc., 8% 12/01/2015 509,036 501,636

1,100 GLV Inc. 8,127 8,338 151,197 Greater Toronto Airports Authority

6.45% 07/30/2029 170,445 174,954 300,000 Holcim Finance Canada Inc., 5.9% 06/21/2013 299,583 320,061

4,700 IESI-BFC Ltd. 97,412 110,638 530,000 Iron Mountain Inc., 7.5% 03/15/2017 536,625 535,390

19 Martinrea International Inc. 104 144 USD 1,745,000 Mastec Inc., 7.625% 02/01/2017 1,808,575 1,791,111

2,700 Neo Material Technologies Inc. 11,897 13,284 4,400 Newalta Inc. 30,817 39,292 5,300 Onex Corp.* 132,959 153,223 3,800 Pure Technologies Ltd. 15,134 15,770 4,900 Rocky Mountain Dealership Inc. 49,422 39,200 3,300 SNC-Lavalin Group Inc. 141,384 173,580

170,000 SNC-Lavalin Group Inc., 6.19% 07/03/2019 170,000 192,420 488,930 Strait Crossing Development Inc.,

6.17% 09/15/2031 491,439 494,436 500 The Churchill Corp., Class A 9,768 10,350

1,900 Toromont Industries Ltd. 45,521 54,036 2,800 Transcontinental Inc., Class A 23,930 39,116

300 Wajax Income Fund 8,692 8,307 800 WaterFurnace Renewable Energy, Inc. 19,612 20,816

89,350 WestJet Airlines Ltd. 1,207,273 1,068,626 2,500 Westshore Terminals Inc. 42,168 51,700

14,190,520 14,725,984 ENERGY (8.5%)

144,033 Alliance Pipeline LP 7.181% 06/30/2023 172,035 172,846 125,000 AltaGas Income Trust 5.07% 01/19/2012 124,956 128,648

2,500 AltaGas Ltd. 66,206 53,475 9,200 Angle Energy Inc. 70,017 69,368

17,600 Athabasca Oil Sands Corp. 315,809 182,160 4,700 Bankers Petroleum Ltd. 29,959 38,211

13,150 Baytex Energy Trust* 350,495 490,100 6,250 Bonavista Energy Trust 149,233 149,312

USD 1,000,000 Calfrac Holdings LP 7.75% 02/15/2015 1,046,111 1,039,287 1,600 Calfrac Well Services Ltd. 33,174 40,976

12,500 Canacol Energy Ltd. 9,375 16,250 62,712 Canadian Natural Resources Ltd. 2,246,956 2,231,920 3,100 Celtic Exploration Ltd. 39,346 40,052 8,200 Coastal Energy Co.* 29,826 32,718

USD 250,000 Compagnie Générale de Géophysique7.75% 05/15/2017 254,154 263,037

6,000 Crew Energy Inc. 100,355 109,260 68,740 Daylight Energy Ltd.* 635,817 677,089 25,800 Delphi Energy Corp. 56,886 62,178 7,200 Enbridge Inc. 309,920 387,432

22,285 EnCana Corp. 717,383 692,841 2,000 Flint Energy Services Ltd. 25,789 30,400

13,600 Fort Chicago Energy Partners LP 140,657 160,208 14,400 Gran Tierra Energy Inc. 95,844 113,760


MATERIALS (11.6%) (cont’d)

3,000 Eldorado Gold Corp. 31,336 57,000 16,300 Equinox Minerals Ltd.* 68,340 94,051 36,800 Farallon Mining Ltd. 20,077 16,008

USD 500,000 Ferro Corp., 7.875% 08/15/2018 521,558 533,792 1,900 First Majestic Silver Corp. 12,551 13,376

14,075 Goldcorp Inc. 570,822 629,152 7,700 Golden Star Resources Ltd. 39,921 39,039

19,500 Greystar Resources Ltd. 95,640 80,925 12,300 HudBay Minerals Inc. 163,851 179,949

USD 250,000 International Coal Group Inc.,9.125% 04/01/2018 258,317 273,970

1,500 iShares Silver Trust 29,318 32,861 17,700 Kilo Goldmines Ltd. 9,344 4,868 19,456 Kinross Gold Corp. 150,552 375,501 1,800 Kirkland Lake Gold Inc.* 16,235 15,606 5,100 Labrador Iron Ore Royalty Corp. 210,524 275,400

20,300 Lundin Mining Corp. 87,566 104,342 100 MAG Silver Corp.* 1,160 782

1,100 Major Drilling Group International Inc. 21,276 32,362 45,800 Methanex Corp. 980,216 1,155,076

USD 300,000 Nalco Co., 8.875% 11/15/2013 319,625 315,645 6,700 Nevsun Resources Ltd.* 29,085 33,567 7,200 Osisko Mining Corp. 72,518 105,480 2,700 Platinum Group Metals Ltd. 6,507 6,507

17,925 Potash Corp. of Saskatchewan Inc.* 2,055,105 2,643,579 27,200 Premier Gold Mines Ltd. 104,487 154,224 21,927 RS Technologies Inc. 7,245 219 1,300 Russel Metals Inc.* 22,294 27,417 8,800 SEMAFO Inc.* 63,852 85,360

500,000 Sherritt International Corp., 7.75% 10/15/2015 509,295 524,903 602 SPDR Gold Trust 75,562 79,228

17,500 Taseko Mines Ltd.* 78,338 92,925 45,475 Teck Resources Ltd., Class B 1,659,370 1,924,502 20,575 Thompson Creek Metals Co., Inc.* 233,785 227,971 8,100 Western Coal Corp. 32,820 47,547 9,800 Yamana Gold Inc.* 105,931 114,660

17,377,914 19,944,108 INDUSTRIALS (8.5%)

200,000 407 International Inc., 5.1% 01/20/2014* 199,808 216,760 1,800 5N Plus Inc. 10,652 10,404

11,500 Aecon Group Inc. 152,968 137,770 500,000 Air Canada 10.125% 08/01/2015 507,500 506,667

USD 500,000 Alliant Techsystems Inc., 6.75% 04/01/2016 502,373 536,365 170,000 AltaLink Investments LP 5.207% 12/16/2016 170,000 179,463

USD 500,000 Altra Holdings Inc., 8.125% 12/01/2016 537,600 535,079 2,800 ATS Automation Tooling Systems Inc.* 20,223 19,740

USD 250,000 BE Aerospace Inc., 8.5% 07/01/2018 267,911 280,402 1,100 Bird Construction Income Fund 29,676 41,261

240,100 Bombardier Inc., Class B, Sub-Voting Shares 1,308,197 1,210,104 21,200 CAE Inc. 197,705 224,932 4,800 Calvalley Petroleums Inc. 16,957 17,040

38,747 Canadian National Railway Co. 2,122,830 2,549,553 9,175 Canadian Pacific Railway Ltd. 514,687 576,190

48,400 Celestica Inc.* 446,755 418,176 3,700 European Goldfields Ltd. 24,171 40,256


– 11 –




CONSUMER DISCRETIONARY (7.0%) (cont’d)

300,000 Shaw Communications Inc., 5.65% 10/01/2019 299,049 319,953 405,000 Shaw Communications Inc., 6.5% 06/02/2014 404,531 452,194

4,000 Shaw Communications Inc., Class B 79,386 90,640 USD 535,000 Steinway Musical Instruments Inc.,

7% 03/01/2014 545,907 551,890 USD 719,000 Stoneridge Inc., 11.5% 05/01/2012 739,978 742,623

17,100 Thomson Corp. 622,787 661,428 215,000 Thomson Reuters Corp., 5.7% 07/15/2015 214,609 242,112

2,300 Torstar Corp., Class B 16,542 29,187 40,200 Yellow Pages Income Fund 248,332 222,306

10,933,201 12,075,540 ASSET BACKED SECURITIES (4.0%)

400,000 CCIC 2006-WEM, MBS A2, 4.934% 01/15/2022 399,986 401,656 145,000 ClareGold Trust 5.06296% 05/15/2044 119,946 130,372

1,300,000 Ford Auto Securitization Trust1.926% 06/15/2013 1,300,000 1,300,000

1,000,000 Ford Auto Securitization Trust4.035% 04/15/2016 1,000,000 1,000,000

413,000 Merrill Lynch Financial Assets Inc.,4.38% 11/12/2037 277,161 300,829





1,724,000 Real Estate Asset Liquidity Trust4.805% 10/12/2015 1,557,979 1,570,101

450,000 Schooner Trust 4.849% 10/12/2038 434,606 438,784 191,000 Schooner Trust 5.088% 04/12/2020 168,080 190,963

6,783,466 6,951,533 INFORMATION TECHNOLOGY (1.8%)

422 Aastra Technologies Ltd. 8,085 10,022 3,900 Bridgewater Systems Corp. 21,450 33,696 4,500 Catch the Wind Ltd. 10,482 1,845

57,500 CGI Group Inc.* 690,710 888,950 3,700 MacDonald Dettwiler & Associates Ltd. 126,624 168,350

900 Mosaid Technologies Inc. 19,059 21,564 15,300 Open Text Corp. 623,663 740,061 18,500 Research In Motion Ltd. 1,258,039 926,480 2,500 Smart Technologies Inc. 41,444 34,000

250,000 Zarlink Semiconductor Inc., 6% 09/30/2012 250,312 264,400 3,049,868 3,089,368

TELECOMMUNICATION SERVICES (1.6%) 11,200 BCE Inc.* 308,969 374,976

155,000 Bell Aliant Regional CommunicationsIncome Fund 6.17% 02/26/2037 125,985 153,853

155,000 Bell Aliant Regional Communications LP6.29% 02/17/2015 155,412 173,234

180,000 Bell Canada 5% 02/15/2017 161,780 193,987 400,000 France Telecom SA 4.95% 06/23/2011 402,344 408,730 260,000 Rogers Communications Inc., 5.8% 05/26/2016 259,394 291,260 100,000 Rogers Communications Inc., 6.68% 11/04/2039 102,187 111,670 28,100 Rogers Communications Inc., Class B* 994,291 1,080,445

2,510,362 2,788,155


ENERGY (8.5%) (cont’d)

15,208 Imperial Oil Ltd. 610,565 592,960 10,200 Inter Pipeline Fund LP 100,265 139,536 9,021 Keyera Facilities Income Fund 175,886 282,718

12,800 Legacy Oil & Gas Inc. 145,821 144,256 1,600 Mantra Resources Ltd. 6,400 6,624

USD 500,000 Massey Energy Co., 6.875% 12/15/2013 520,871 527,361 2,600 MEG Energy Corp.* 91,000 93,054

19,450 Mullen Group Ltd. 291,239 280,274 18,400 NAL Oil & Gas Trust 198,454 212,152

550,000 North American Energy Partners Inc.,9.125% 04/07/2017 550,222 555,156

2,500 Orbit Garant Drilling Inc. 10,000 11,500 1,400 Pacific Rubiales Energy Corp. 37,532 40,460 1,502 Paramount Resources Ltd., Class A 30,826 30,581 7,700 Peyto Energy Trust 113,872 119,581 2,800 Phoenix Technology Income Fund 33,245 27,580

48,500 Precision Drilling Corp. 380,954 340,470 47 ProspEx Resources Ltd. 162 63

2,000 Provident Energy Trust 13,355 14,520 16,650 Savanna Energy Services Corp.* 110,764 91,242 1,500 ShawCor Ltd., Class A, Sub-Voting Shares 37,923 45,000

43,651 Suncor Energy Inc. 1,351,890 1,461,872 290,000 Suncor Energy Inc. 5.8% 05/22/2018 249,646 326,004 40,450 Talisman Energy Inc. 719,128 728,100

275,000 Terasen Gas Vancouver Island Inc.,6.05% 02/15/2038 274,810 318,790

6,319 TransCanada Corp.* 219,746 241,196 33,400 Trican Well Service Ltd. 435,143 548,094 15,200 Trilogy Energy Corp. 144,077 174,648 2,000 Vermilion Energy Inc.* 67,130 76,900 9,000 Vero Energy Inc. 61,281 60,120 5,300 Wavefront Technology Solutions Inc. 12,097 7,314 3,700 Wild Stream Exploration Inc. 23,815 25,641

14,038,422 14,705,295 CONSUMER DISCRETIONARY (7.0%)

3,600 Astral Media Inc., Class A, Non-Voting Shares 113,510 139,140 300,000 Canadian Tire Corp., Ltd., 5.22% 10/01/2010 299,952 300,001 31,278 Canadian Tire Corp., Ltd., Class A,

Non-Voting Shares 1,745,724 1,792,229 2,300 Cineplex Galaxy Income Fund 32,361 47,771 8,600 Corus Entertainment Inc., Class B 148,767 184,900

USD 1,000,000 Dillard's Inc., 7.875% 01/01/2023 944,598 974,975 3,100 Dollarama Inc. 71,847 83,855 5,500 Dorel Industries Inc., Class B 174,100 189,145 2,519 Forzani Group Ltd., Class A 30,928 40,657

20,300 Gildan Activewear Inc.* 594,352 586,467 USD 750,000 Great Canadian Gaming Corp.,

7.25% 02/15/2015 794,424 784,289 7,100 Linamar Corp. 116,797 135,184

27,025 Magna International Inc., Class A 1,555,180 2,281,450 USD 2,000,000 Motors Liquidation Co., 8.375% 07/15/2033 670,745 694,573

1,100 Quad/Graphics Inc. 55,932 52,554 5,400 Quebecor World Inc., Class B 136,382 185,868 1,700 RONA Inc. 24,511 22,610

USD 250,000 Royal Caribbean Cruises Ltd.,7.25% 06/15/2016 251,970 267,539


– 12 –



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

Schedule AForeign Currency Forward Contracts (0.1%)

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

1 Canadian Imperial Bank of Commerce A-1 03-Nov-10 1.03 (18,316,204) US $ 18,925,401 Canadian $ 64,167 1 Royal Bank of Canada A-1+ 27-Oct-10 0.99 (1,900,000) Australian $ 1,887,183 Canadian $ 2,562

Total Foreign Currency Forward Contracts Value 66,729

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

PRIVATE PLACEMENTS (0.0%) 4,900 Petra Diamonds Ltd., Private Placement^ 5,135 6,555

USD 55,000 Russel Metals Inc., Private Placement6.375% 03/01/2014^ 53,875 55,887

59,010 62,442 WARRANTS (0.0%)

500 Catch the Wind Ltd., Warrants (21Apr12) - 18 435 Gold Wheaton Gold Corp., Warrants (08Jul13) - 117

1,086 Kinross Gold Corp., Warrants (17Sep14) - 4,778 500 Kirkland Lake Gold Inc., Purchase Warrants (10Oct10) - - 800 Laramide Resources Ltd., Warrants (05Mar12) - 350

3,000 Metalex Ventures Ltd., Warrants (06Oct11),Private Placement^ - 612

1,760 Primero Mining Corp., Warrants (20Jul15) - 2,869 1,450 Wavefront Technology Solutions Inc.,

Warrants (26Apr11) - 177 - 8,921

Commission and other portfolio transaction costs (66,330)

Total Bonds & Equities (95.6%) 166,344,834 165,179,167

DERIVATIVE INSTRUMENTS

Foreign Currency Forward Contracts (0.1%) (see Schedule A) 66,729

Total Investments (95.7%) 166,344,834 165,245,896

Other Assets (net) (4.3%) 7,382,128

Net Assets (100.0%) 172,628,024

Principal amounts stated in:AUD Australian Dollar USD U.S. Dollar


CANADIAN GOVERNMENT BONDS (1.6%) 175,000 Canadian Government Bond 2% 12/01/2014* 169,376 176,310 145,000 Canadian Government Bond 4% 06/01/2016* 153,510 159,506 600,000 City of Toronto 5.05% 07/18/2017 598,368 668,329 515,000 Province of Ontario 4.3% 03/08/2017 506,133 559,911 155,000 Province of Ontario 4.4% 03/08/2016 163,249 169,634 439,000 Province of Quebec 4.5% 12/01/2016 425,529 482,552 446,000 Province of Quebec 4.5% 12/01/2017 442,311 488,122

2,458,476 2,704,364 CONSUMER STAPLES (1.1%)

900 AG Growth International Inc. 23,232 36,126 2,200 Alliance Grain Traders Inc. 41,869 64,416

12,500 BioExx Specialty Proteins Ltd. 19,910 32,375 USD 700,000 Elizabeth Arden Inc., 7.75% 01/15/2014 718,369 724,800

5,156 Empire Co., Ltd., Class A 258,051 283,889 2,767 George Weston Ltd. 193,431 218,372

600 Maple Leaf Foods Inc. 7,114 7,224 300,000 Metro Inc., 5.97% 10/15/2035 285,885 306,648 190,000 Molson Coors Capital Finance Co.,

Senior Notes, 5% 09/22/2015 189,527 204,579 1,800 Shoppers Drug Mart Corp. 60,114 71,928

1,797,502 1,950,357 UTILITIES (0.6%)

6,950 Advantage Oil & Gas Ltd.* 39,015 45,106 4,583 Atco Ltd., Class I 215,153 247,024 3,111 Brookfield Renewable Power Fund 51,898 64,833

200,000 Brookfield Renewable Power Inc.,5.84% 11/05/2036 200,791 187,899

200,000 Brookfield Renewable Power Inc.,6.132% 11/30/2016 200,000 219,945

2,200 Northland Power Income Fund 31,916 34,144 285,000 Reliance LP 7.3% 04/03/2013 285,000 294,575

1,023,773 1,093,526 HEALTH CARE (0.4%)

2,400 Atrium Innovations Inc. 41,448 35,088 1,100 Paladin Labs Inc. 14,071 30,140

USD 500,000 Res-Care Inc., 7.75% 10/15/2013 506,218 523,502 2,700 Valeant Pharmaceuticals International Inc. 68,351 69,687

630,088 658,417


– 13 –

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 futures and forward currency contractsCash collateral received for securities on loan (Note 6)Swaps, swaptions and options at fair valueReceivable for unit subscriptionsReceivable for securities soldManagement fee rebate receivableReceivable for dividends and accrued interest

LiabilitiesBank overdraftManagement fees payableAccrued expensesUnrealized loss on futures and forward currency contractsSwaps, swaptions and options at fair valuePayable for securities purchasedPayable for unit redemptionsPayable for cash collateral under securities lending (Note 6)Investments sold short at fair value**Distributions payable

Net assets and unitholders' equity

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

Net assets per classClass AClass FClass I

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


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


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

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

Net investment income (loss) for the period

Realized and unrealized gain (loss) on investments and commissions and other portfolio transaction costs

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

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

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

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


165,179 172,3568,182 17,360

- -- -- -- -

67 118- -- -

59 65996 396

- -825 844

175,308 191,139

- -- -- -- -- -

1,996 2,087684 224

- -- -- -

2,680 2,311172,628 188,828

166,345 171,805- -

65,164 72,0871,173 1,401

106,291 115,340

7.41 7.336.00 5.909.96 9.74

8,793,697 9,839,450195,476 237,379

10,667,808 11,846,987

620 5361,674 1,852

4 8- -- -- -- -

2,298 2,396

181 4523 14

- -14 3

218 622,080 2,334

2,712 2,166(60) (52)(72) (90)

- -

(1,767) 22,250813 24,274

2,893 26,608

607 9,16317 200

2,269 17,245

0.06 0.860.07 0.740.20 1.24

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

2010 2009

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

as at as atSeptember 30, 2010 March 31, 2010

– 14 –

Synergy Tactical Asset Allocation FundFinancial Statements (unaudited)



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




115,340 119,552

3 134- -

(11,321) (12,075)(11,318) (11,941)

- -- -- -- -

2,269 17,245106,291 124,856

188,828 189,617

5,541 6,683- -

(24,634) (23,444)(19,093) (16,761)

- -- -- -- -

2,893 26,608172,628 199,464

72,087 68,445

5,387 6,438- -

(12,917) (10,879)(7,530) (4,441)

- -- -- -- -

607 9,16365,164 73,167

1,401 1,620

151 111- -

(396) (490)(245) (379)

- -- -- -- -

17 2001,173 1,441

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

2010 2009

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

2010 2009

– 15 –

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


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

Class 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)

2010 2009

LoanedCollateral (non-cash)

9,496 16,5829,704 16,914

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

2010 2009

Brokerage commissionsSoft Dollar commissions†

71 898 9

Schedule of Fund Unit Transactions for the periods ended September 30

2010 2009

9,839,450 10,985,623748,872 964,084

- -(1,794,625) (1,620,553)8,793,697 10,329,154

237,379 322,86626,123 20,823

- -(68,026) (92,535)195,476 251,154

11,846,987 14,433,637350 15,230

- -(1,179,529) (1,342,375)10,667,808 13,106,492

Annual management fee rateClass AClass FClass I

Annual fixed administration fee rateClass AClass FClass I

1.950.95

Paid directly by investors

0.220.22

-

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

2010

Class ANet assets per unitNet asset value per unit

Class FNet assets per unitNet asset value per unit

Class INet assets per unitNet asset value per unit

7.41 7.087.41 7.09

6.00 5.746.00 5.74

9.96 9.539.97 9.53

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

2010 2009

– 16 –

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


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

as at March 31, 2010

Categories Net Assets (%)

Funds ........................................................................................................................................ 27.5 Financials ................................................................................................................................. 18.1 Energy ...................................................................................................................................... 9.9 Industrials ................................................................................................................................ 8.9 Other Assets (net) .................................................................................................................... 8.6 Materials.................................................................................................................................. 8.1 Foreign Government Bonds...................................................................................................... 4.4 Consumer Discretionary........................................................................................................... 4.2 Information Technology ........................................................................................................... 3.9 Canadian Government Bonds .................................................................................................. 1.8 Asset Backed Securities .......................................................................................................... 1.7 Telecommunication Services ................................................................................................... 1.1 Consumer Staples.................................................................................................................... 1.0 Utilities..................................................................................................................................... 0.7 Foreign Currency Forward Contracts ....................................................................................... 0.1

During the six-month period the Fund's exposure to credit risk changed significantly as disclosed in thesection below. For details relating to other price risk, currency risk, interest rate risk and fair valuehierarchy, refer to the audited annual financial statements as at March 31, 2010, as the Fund's exposureto those risks remains unchanged.

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

as at September 30, 2010*Net Assets

Credit Rating^ (%)AAA/Aaa/A++ 2.1AA/Aa/A+ 1.9A 6.7BBB/Baa/B++ 5.1BB/Ba/B+ 4.5B 8.9C and Lower 0.4Not Rated 0.7Total 30.3

as at March 31, 2010*Net Assets

Credit Rating^ (%)AAA/Aaa/A++ 5.1AA/Aa/A+ 3.1A 6.1BBB/Baa/B++ 4.8BB/Ba/B+ 1.4B 6.3Not Rated 0.1Total 26.9

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

^Refer to Note 11 for Credit Rating cross reference.


– 17 –

CI Mutual FundsNotes to the Financial Statements as at September 30, 2010 (unaudited)


1. THE FUNDS

The following funds are open-ended mutual fund trusts created under the laws of Ontario by declarations of trust. “Inception Date” is the date upon which units of a class of a Fund were first sold to the public under prospectus.

Inception Date:

Class A Class B Class F Class I Insight Class M Class Z

CI Funds

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

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

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

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

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

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

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

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

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

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

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

CI Global Small Companies Fund Apr. 7, 93 Jul. 17, 00 Jul. 31, 01 Jul. 15, 03

CI Global Value Fund Jun. 12, 96 Jul. 17, 00 Jul. 31, 01

CI Income Advantage Fund Sep. 17, 10 Sep. 17, 10 Sep. 17, 10 Jul. 13, 10

(formerly Select Income Advantage Managed Fund)

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

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

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

CI Money Market Fund Oct. 1, 90 Jul. 31, 01 Jul. 31, 01 Jul. 15, 03 Aug. 4, 05 Jul. 14, 10

CI Pacific Fund Oct. 31, 81 Jul. 17, 00 Jun. 20, 05

CI US Money Market Fund Jan. 30, 95

Class A Class C Class F Class I Class W

Portfolio Select Series

Select Canadian Equity Managed Fund Nov. 22, 06

Select International Equity Managed Fund Nov. 22, 06

Select Staging Fund Nov. 7, 05 Nov. 7, 05 Nov. 7, 05 Nov. 7, 05

Select U.S. Equity Managed Fund Nov. 22, 06

Class A Class F Class I Class Z

Harbour Funds

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

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

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

Signature Funds

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

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

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

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

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

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

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

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

Signature Income & Growth Fund Oct. 14, 94 Jul. 31, 01 Jun. 20, 05

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

Signature Select Canadian Fund May 13, 98 Jul. 17, 00 Jul. 31, 01 Jul. 15, 03 Jun. 20, 05

Signature Short-Term Bond Fund May 31, 76 Nov. 17, 00 Nov. 1, 96

– 18 –



Inception Date:

Class A Class F Class I

Synergy Funds

Synergy American Fund Aug. 31, 92 Jul. 17, 00 Jul. 31, 01

Synergy Tactical Asset Allocation Fund Sep. 18, 98 Nov. 13, 00 Aug. 22, 02

Class A Class AT5 Class AT8 Class F Class FT5 Class FT8 Class I Class Y Class Z

Portfolio Series Funds

Portfolio Series Balanced Fund Nov. 9, 88 Sep. 17, 07 Sep. 17, 07 Aug. 30, 00 Sep. 17, 07 Sep. 17, 07 Oct. 31, 96

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

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

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

Portfolio Series Growth Fund Dec. 17, 01 Sep. 17, 07 Sep. 17, 07 Dec. 17, 01 Sep. 17, 07 Sep. 17, 07 Aug. 28, 02

Portfolio Series Income Fund Dec. 1, 97 Aug. 30, 00 Dec. 1, 97

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

*These Classes are no longer available for purchase.

Select Staging Fund is available to simplify placing orders for a Custom Portfolio. If you have selected a Custom

Portfolio, you only need to submit one purchase order and CI will automatically switch your investment from

Select Staging Fund to the Select Funds in accordance with your Custom Portfolio’s allocations on the business

day following the day that your purchase in Select Staging Fund has settled. If you have opted to modify your

Custom Portfolio, CI will automatically switch your investment from Select Staging Fund to the Select Funds

and other Corporate Classes on the business day following the day that your purchase in Select Staging Fund

has settled or that CI has received your PSS documentation containing your modification instructions,

whichever occurs later. If your PSS documentation is not received within five days after your initial purchase in

Select Staging Fund has settled, CI will notify your financial advisor and if your PSS documentation is not

received within 30 days after your purchase has settled, your participation in PSS will be terminated and your

units of Select Staging Fund will be automatically switched to Class A shares of CI Short-Term Advantage

Corporate Class. Rather than using Select Staging Fund, your modified Custom Portfolio may directly purchase

units/shares in the Select Funds and other Corporate Classes. If your PSS documentation is not received within

five days after your first investment in the Select Funds and other Corporate Classes, CI will notify your

financial advisor and if your PSS documentation is not received within 30 days after your first investment in the

Select Funds and other Corporate Classes, the allocation of your first investment between the Select Funds and

other Corporate Classes will become your target allocation and your Custom Portfolio.

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

Terminated Funds Continuing Funds

Artisan Canadian T-Bill Portfolio CI Money Market

Artisan Moderate Portfolio Portfolio Series Balanced Fund

Artisan Growth Portfolio Portfolio Series Balanced Growth Fund

Artisan Conservative Portfolio Portfolio Series Conservative Balanced Fund

Artisan Most Conservative Portfolio Portfolio Series Conservative Fund

Artisan High Growth Portfolio Portfolio Series Growth Fund

Artisan Maximum Growth Portfolio Portfolio Series Maximum Growth Fund

Artisan New Economy Portfolio Portfolio Series Maximum Growth Fund

The Manager adopted the purchase method of accounting for the merger of the Funds. Under this method one

of the Funds is identified as the acquiring Fund, and is referred to as the “Continuing Fund” and any other Fund

involved in the merger is referred to as the “Terminating Fund”. This identification is based on a comparison of

the relative net asset value of the Funds as well as consideration of the continuation of such aspects of the

Continuing Fund as: investment objectives and practices and type of portfolio securities.

Effective as of the close of business on September 17, 2010, the Continuing Funds acquired all of the assets

of the corresponding Terminating Funds in exchange for units in the Continuing Funds. The value of the units

of the Continuing Funds issued in connection with these mergers, were equal to the net assets transferred from

the respective Terminating Funds. The cost associated with the mergers was borne by the Manager.

Net Asset Units

Terminated Funds Continuing Funds Acquired ($) Issued

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

Artisan Moderate Portfolio Portfolio Series Balanced Fund 102,856,243 4,752,896

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

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

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

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

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

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

As a result of the merger, the Terminating Funds were deemed to have a taxation year-end on the merger date.

In accordance with the Income Tax Act, all unrealized losses and certain elected unrealized gains of the Funds'

portfolio were deemed to be realized on the merger date.

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

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

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

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

Partners Inc., in exchange for the Canadian equity portfolio. The Underlying Account consists of dividend-

paying common and preferred shares, debentures, income trusts, equity-related securities and convertible

securities issued by issuers anywhere in the world. However, neither the Fund nor the unitholders will have any

ownership interest in the Underlying Account.

The Signature Diversified Yield Fund entered into a forward purchase agreement (the "Forward Purchase

Agreement") with Bank of Montreal. Under the Forward Purchase Agreement, the Fund agrees to buy securities

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

Trust”). Through the forward agreement the Fund provides unitholders with exposure to the performance of the

Underlying Trust. The Underlying Trust consists of fixed income and high-yielding equity securities issued by

issuers anywhere in the world. However, neither the Fund nor the unitholders will have any ownership interest

in the Underlying Trust.

– 19 –



The Statement of Investment Portfolio and Schedule of Fees for each of the Funds are as at September 30,

2010. The Statements of Net Assets for each of the Funds are as at September 30, 2010 and March 31, 2010.

The Schedule of Net Assets per Unit and Net Asset Value per Unit and Schedule of Securities Lending are as

at September 30, 2010 and 2009, where applicable. The Statements of Operations, Statements of Changes in

Net Assets, Schedule of Fund Unit Transactions and Schedule of Commissions are for the periods ended

September 30, 2010 and 2009, except for Funds established during either period, in which case the information

provided relates to the period from inception to September 30, 2010 and 2009. The Fund Specific Financial

Instruments Risks for each of the Funds are as at September 30, 2010 and March 31, 2010, where applicable.

2. SIGNIFICANT ACCOUNTING POLICIES

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

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

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

financial statements should be read in conjunction with the Funds’ March 31, 2010 annual financial statements.

Certain prior period balances have been reclassified to conform with the current period presentation.

(a) Accounting Amendments

The Canadian Institute of Chartered Accountants (“CICA”) amended Section 3862 “Financial Instruments –

Disclosures” to require disclosures about the inputs to fair value measurements. Amended Section 3862

became effective for annual financial statements relating to fiscal years ending after September 30, 2009.

The amendment has no impact on the valuation policies of the Funds. The Funds adopted the amendments

to Section 3862 on March 31, 2010.

(b) Valuation of Investments

Canadian GAAP requires the fair value of financial instruments traded in an active market to be measured

based on an investment’s bid/ask price depending on the investment position (long/short).

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

price of investments (referred to as “Net Asset Value”), while for financial statement purposes net assets are

calculated based on bid/ask price of investments (referred to as “Net Assets”).

In accordance with National Instrument 81-106, a comparison between the Net Asset Value per unit and the

Net Assets per unit is disclosed in the Schedule of Net Assets per Unit and Net Asset Value per Unit.

At the financial reporting date, listed securities are valued based on the bid price for securities held long and

the ask price for securities held short. Unlisted securities are valued based on price quotations from recognized

investment dealers, or failing that, their fair value is determined by the Manager on the basis of the latest

reported information available. Fixed income securities, debentures, mortgage-backed securities, asset-backed

securities, money market investments and other debt instruments including short-term investments, are valued

at the bid quotation from recognized investment dealers. Underlying Funds are valued on each business day at

their net asset value as reported by the Underlying Funds’ manager.

The fair value of private placements is determined by using valuation models that are based, in part, on

assumptions that are not supported by observable market inputs. These methods and procedures may include,

but are not limited to, performing comparisons with prices of comparable or similar securities, obtaining

valuation related information from issuers and/or other analytical data relating to the investment and using

other available indications of value. These values are independently assessed by the Manager to ensure that

they are reasonable. However, because of the inherent uncertainty of valuation, the estimated fair values for

the aforementioned securities and interests may be materially different from the values that would have been

used had a ready market for the investment existed. The fair values of private placements are affected by the

perceived credit risks of the issuer, predictability of cash flows and the length of time to maturity.

Mortgages are valued according to the present value of cash flows at interest rates for mortgages that are

similar in nature and duration.

(c) Forward Contracts

A Fund may enter into forward currency contracts. Forward currency contracts are valued on each valuation day

based on the difference between the value of the contract on the date the contract originated and the value of

the contract on the valuation day.

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

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

(loss) on futures and forward currency contracts” in the Statements of Net Assets until the contracts are closed

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

in the Statements of Operations.

CI Global High Dividend Advantage Fund and Signature Diversified Yield Fund entered into Forward

Agreements with third parties and the value of these forward contracts on the valuation date is equal to the

gain or loss that would be realized if the contracts were closed out or expired. The Underlying Account/Trusts

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

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

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

purchase forward agreement” in the Statements of Net Assets until the contract is closed out or expires; at

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

Statements of Operations.

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

in the Statements of Operations.

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

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

valued at bid/ask price taken from the exchange.

3. UNITHOLDERS’ EQUITY

Units issued and outstanding represent the capital of each Fund.

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

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

redemption amounts. The relevant changes pertaining to subscription and redemption of each Fund’s units are

disclosed in the Statements of Changes in Net Assets and the Schedule of Fund Unit Transactions.

In accordance with the objectives and risk management 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.

4. INCOME TAXES

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

subject to tax on net income, including net realized taxable capital gains for the taxation year, which is paid or

payable to unitholders at the end of the taxation year. However, such part of each Fund’s taxable income and

net realized capital gains that is not so paid or payable will be taxable to that Fund. Income tax on net realized

capital gains not paid or payable will generally be recoverable by virtue of refunding provisions contained in

– 20 –



the Income Tax Act (Canada) and provincial income tax legislation, as redemptions occur. It is the intention of

each Fund to distribute all net income and sufficient net realized capital gains so that the Fund will not

generally be liable for income tax thereon. Occasionally, a Fund may distribute more than it earns. This excess

distribution is a return of capital and is not taxable to unitholders.

Net capital losses may be carried forward indefinitely to reduce future net realized capital gains. Non-capital

losses arising in taxation years 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 for management fees provides

management services required in the day-to-day operations of the Funds, including management of the

investment portfolios of the Funds.

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

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

between the investor and the Manager.

During the period ended September 30, 2010, the Manager of the Funds absorbed a total of $1,359,000

(2009 - $1,871,000) and US$162,000 (2009 – US$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.

A Fund that invests in units of Underlying Funds will not pay a duplicate management and administration fee

on the portion of assets that are invested in units of Underlying Funds. During the reporting period, a Fund may

have received a management and/or administration fee rebates from an Underlying Funds. The management

fee rebates are included in “Management fee rebate receivable” and in “Management fee rebate” as reflected

in the Statements of Net Assets and Statements of Operations of each Fund, as applicable.

The Manager bears all of the operating expenses of the Funds (other than certain taxes, borrowing costs and

new governmental fees) in return for fixed annual administration fees (“Administration Fees”). Administration

Fees are calculated as a fixed annual percentage of the net asset value of each class of a Fund (other than

Class I 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.

The CI Global High Dividend Advantage Fund and Signature Diversified Yield Fund will pay to the counterparties

under Forward Agreements a fee of no more than 0.50% per annum of the market value of notional exposure

to the Underlying Account/Trusts under the Forward Agreements calculated and paid monthly.

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

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

6. SECURITIES LENDING

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

program with their custodian, RBC Dexia Investor Services Trust ("RBC Dexia"). The CI Global High Dividend

Advantage Fund has entered into a securities lending program with National Bank of Canada. The aggregate

market value of all securities loaned by a Fund cannot exceed 50% of the assets of the Fund, except for

CI Global High Dividend Advantage Fund as this Fund received permission from the Canadian securities

regulatory authorities to deviate from National Instrument 81-102 in order to lend up to 100% of its portfolio

securities pursuant to securities lending arrangements. The permission also allows the Fund to appoint a

person, other than the Fund’s custodian, as the agent of the Fund for arranging securities loans, and allows the

Fund to pledge the collateral it receives for each such loan. A Fund will receive collateral of at least 102% of

the value of securities on loan. Collateral will generally be comprised of cash and obligations of or guaranteed

by the Government of Canada or a province thereof, or by the United States government or its agencies, but

may include obligations of other governments with appropriate credit ratings. For those Funds participating in

the program, amounts for securities loaned and the collateral received, appear on the Fund specific schedules

in the financial statements and income from securities lending is included in "Securities lending" in the

Statements of Operations and any cash collateral received or cash collateral payable is included in the

Statements of Net Assets in “Cash collateral received for securities on loan“ or ”Payable for cash collateral

under securities lending”.

7. REINVESTMENT OF DISTRIBUTIONS

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

Distributions are automatically reinvested without charge in the same Fund or paid out in cash to the

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

8. RELATED PARTY TRANSACTIONS

The Bank of Nova Scotia has a significant interest in CI Financial Corp., the parent company of the Manager.

The Funds may have direct or indirect holdings in Bank of Nova Scotia and/or CI Financial Corp.

The Funds paid the following broker commissions to Bank of Nova Scotia during the periods ended

September 30:

2010 2009

Fund (in $) (in $)

CI Alpine Growth Equity Fund 2,713 1,870

CI Canadian Investment Fund 60,238 95,486

CI Canadian Small/Mid Cap Fund 43,293 24,523

CI Income Advantage Fund 6,996 -

(formerly Select Income Advantage Managed Fund)

Select Canadian Equity Managed Fund 10,633 3,566

Harbour Growth & Income Fund - 21,500

Signature Canadian Balanced Fund 28,796 56,345

Signature Canadian Resource Fund 15,388 5,264

Signature Dividend Fund 21,252 50,568

Signature Global Income & Growth Fund 186 -

Signature High Income Fund 26,078 28,296

Signature Income & Growth Fund 42,021 83,256

Signature Select Canadian Fund 67,513 215,062

Synergy American Fund 125 -

Synergy Tactical Asset Allocation Fund 4,201 5,929

9. INTERNATIONAL FINANCIAL REPORTING STANDARDS

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

International Financial Reporting Standards (“IFRS”) will be required for all publicly accountable profit-oriented

enterprises for interim and annual financial statements relating to fiscal years beginning on or after January 1,

2011. On September 8, 2010, the AcSB confirmed deferral of the IFRS changeover date by one year for

investment funds. Based on the AcSB decision, the IFRS will become effective for interim and annual financial

statements relating to fiscal years beginning on or after January 1, 2012 instead of January 1, 2011.

Based on the Manager’s current evaluation of the differences between IFRS and Canadian GAAP, the Manager

currently does not expect any impact to net asset value or net asset value per unit, at this time, as a result of

the transition to IFRS, and expects that the main impact will be on the financial statements, where additional

disclosures or changes in presentation will be required. Further updates on the progress in the implementation

of the IFRS transition plan and any changes to reporting will be provided during the implementation period

leading up to the transition date.

10. FINANCIAL INSTRUMENTS

The categorization of financial instruments is as follows: investments and derivatives are classified as held for

trading and are stated at fair value. Receivable for unit subscriptions, receivable for dividends and accrued

interest, receivable for securities sold, management fee rebate receivable and other receivables are designated

– 21 –



as loans and receivables. They are recorded at amortized cost which approximates their fair value due to their

short-term nature. Similarly, payable for unit redemptions, payable for securities purchased, management fees

payable, accrued expenses and other payables are designated as financial liabilities and are carried at their

amortized cost which approximates their fair value, due to their short-term nature. Financial liabilities are

generally paid within three months.

11. FINANCIAL INSTRUMENTS RISK

Risk Management

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

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

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

within a portfolio can fluctuate daily as a result of changes in prevailing interest rates, economic and market

conditions and company specific news related to investments held by the Fund. The Manager of the Funds may

minimize potential adverse effects of these risks on the Funds’ performance by, but not limited to, regular

monitoring of the Funds’ positions and market events, diversification of the investment portfolio by asset type,

country, sector, term to maturity within the constraints of the stated objectives, and through the usage of

derivatives to hedge certain risk exposures.

Other Price Risk

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

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

influenced by the outlook of the issuer and by general economic and political conditions, as well as industry

and market trends. All securities present a risk of loss of capital.

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

significant other price risk.

Interest Rate Risk

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

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

and/or income trusts will be affected by changes in applicable interest rates. If interest rates fall, the fair value

of existing debt securities may increase due to the increase in yield. Alternatively, if interest rates rise, the yield

of existing debt securities may decrease which may then lead to a decrease in their fair value. The magnitude of

the decline will generally be greater for long-term debt securities than for short-term debt securities.

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

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

common shares, convertible securities are generally less affected by interest rate fluctuations than other debt

securities.

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

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

Currency Risk

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

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

denominated in other currencies will fluctuate due to changes in exchange rates. The Statement of Investment

Portfolio identifies all bonds and derivative instruments denominated in foreign currencies. Equities traded in

foreign markets are also exposed to currency risk as the prices denominated in foreign currencies are converted

to the Funds’ functional currency to determine their fair value.

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

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

than the functional currency of the Fund.

Credit Risk

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

obligations. The fair value of a debt instrument includes consideration for the credit worthiness of the debt

issuer. The carrying amount of debt instruments as shown on the Statement of Investment Portfolio represents

the credit risk exposure of each Fund. Credit risk exposure for derivative instruments is based on each Fund’s

unrealized gain on the contractual obligations with the counterparty as at the reporting date. The credit rating

of counterparty to a derivative instrument is disclosed in the Statement of Investment Portfolio or in Fund

Specific Financial Instruments Risks section of the financial statements of each Fund, if applicable. The credit

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

Statements of Net Assets.

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

the event that the underlying fund invests in debt instruments, preferred securities and derivatives.

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

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

Rating Services and Canadian Bond Rating Services.

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

obligations and derivative instruments considered short-term in nature.

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

table inclusive of the short-term credit ratings disclosed in the derivatives schedules in the Statement of

Investment Portfolio.

Credit Rating as per Credit Risk table Credit Rating as per derivative schedules

AAA/Aaa/A++ A-1+

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

A B, B-1

BBB/Baa/B++ B-2

BB/Ba/B+ B-3

B C

CCC/Caa/C++ -

CC/Ca/C+ -

C and Lower D

Not Rated WR

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

RBC Dexia. The Manager monitors the credit worthiness of the custodian on a regular basis.

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

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

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

The trade will fail if either party fails to meet its obligation.

Liquidity Risk

Liquidity risk is the risk that a Fund may not be able to settle or meet its obligations, on time or at a reasonable

price. The Funds are exposed to daily cash redemption of redeemable units. Therefore, the Funds invest the

majority of their assets in investments that are traded in active markets and can be readily disposed of.

In addition, the Funds retain sufficient cash and cash equivalents positions to maintain liquidity. From time to

time, the Funds may enter into derivative contracts or invest in unlisted securities that may not trade in an

organized market and may be illiquid. Illiquid securities are identified in the Statement of Investment Portfolio

of each Fund.

– 22 –



Fair Value Hierarchy

Section 3862 requires the Funds to classify financial instruments measured at fair value using a fair value

hierarchy. Investments whose values are based on quoted market prices in active markets are classified as

Level 1. This level includes publicly traded equities, exchange traded and retail mutual funds, exchange traded

warrants, futures contracts, traded options, American depositary receipts (“ADRs”) and Global depositary

receipts (“GDRs”).

Financial instruments that trade in markets that are not considered to be active but are valued based on quoted

market prices, dealer quotations or alternative pricing sources supported by observable inputs are classified as

Level 2. These include fixed income securities, mortgage backed securities (“MBS”), short-term instruments,

non-traded warrants, over-the-counter options, structured notes of indexed securities, foreign currency forward

contracts and swap instruments.

Investments classified as Level 3 have significant unobservable inputs. Level 3 instruments include private

equities, private term loans, private equity funds and certain derivatives. As observable prices are not

available for these securities, the Funds may use a variety of valuation techniques to derive the fair value.

During the six-month period some Funds’ exposure to financial instruments risks, including fair value hierarchy

classification, changed significantly as per details disclosed in the "Fund Specific Financial Instruments Risks"

section of the financial statements. For details relating to financial instruments risks exposure including fair

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

March 31, 2010, as these Funds’ exposure to financial instruments risks and fair value hierarchy classification

remained unchanged through the period.

– 23 –

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_11/10E

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

Calgary 403-205-43961-800-776-9027

Montreal 514-875-00901-800-268-1602

Vancouver 604-681-33461-800-665-6994

Client Services English: 1-800-563-5181French: 1-800-668-3528

semi-annual financial statement– as at september 30, 2010 · statement of investment portfolio as...

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