Manager Profile

Portfolio advisor to the Synergy funds

Picton Mahoney Asset Management is a portfolio management firm led by David Picton and Michael Mahoney. They have built their investment careers using quantitative analysis as the foundation for their success. The firm, founded in 2004, maintains a disciplined focus on fundamental change, coupled with strong risk controls and portfolio construction techniques.

The Synergy team

David Picton, President and Portfolio Manager, has more than 22 years of investment experience, including eight years as a top-ranked analyst and head of quantitative research at RBC Dominion Securities. He has managed the Synergy portfolios since

1997. David is a graduate of the University of British Columbia with an Honours Bachelor of Commerce degree. He also received a Leslie Wong Fellowship from UBC’s prestigious Portfolio Management Foundation.

Michael Mahoney, Managing Director, Quantitative Research, has more than 21 years of investment management experience. He began his investment career at the Alberta Treasury as a U.S. equities analyst. He later became a portfolio manager of U.S. and

international equities at Genus Capital Management and a research manager at HSBC Asset Management Europe, a U.K.-based firm. Michael holds the Chartered Financial Analyst designation and has an MBA from the University of Alberta.

James Lawson, Portfolio Manager, has been a Canadian equity portfolio manager for 19 years specializing in small and mid-capitalization stocks. Prior to joining Picton Mahoney, he was a senior member of the investment management team at

KBSH Capital Management Inc. He also managed retail and institutional portfolios at Guardian Capital and Bank of Montreal and was a software analyst at Merrill Lynch. James has an MBA from York University and a business degree from the University of Western Ontario.

Michael Kimmel, Portfolio Manager, has 14 years of investment industry experience and is a founding partner of Picton Mahoney. Previously, he was an investment analyst at Synergy Asset Management since 2002. Prior to this, Michael was an analyst at UBS

Global Asset Management and also served as an associate at N M Rothschild & Sons (a boutique investment bank specializing in mergers and acquisitions). Michael has a Bachelor of Commerce degree from McGill University and holds the Chartered Financial Analyst designation.

Michael Kuan, Portfolio Manager, has 15 years of investment industry experience and is a founding partner of Picton Mahoney. Previously, he was an investment analyst at Synergy Asset Management since 2002. Michael spent three years at Scotia

Capital, where he was a Manager of Market Risk. Michael has an MBA from the University of Toronto and holds the Chartered Financial Analyst designation.

Investment philosophy

As quantitative researchers, the team at Picton Mahoney has rigorously tested various stock-picking strategies, going back more than 25 years. They found that changes in corporate fundamentals are key drivers of stock price movement. In other words, the outlook for a company is important, but a change in that outlook is critical to its share price movement.

Positive changes in fundamentals tend to occur in bunches, which allow momentum investors to profit as they occur. Likewise, the first signs of negative fundamental change tend to be precursors of more bad news to come and warn investors that a stock should be sold or avoided. The search for positive change and the avoidance of negative change form the foundation for Synergy’s funds.

Investment process

Picton Mahoney follows a disciplined, repeatable investment selection process in the creation of its momentum portfolios.

First, it uses a quantitative screening process with a proprietary computer model to rank companies on the basis of fundamental change. Factors considered include:

n earnings/revenue acceleration

n positive earnings forecast revisions

n positive earnings surprises

n improving relative share price strength.

It takes the results and applies fundamental analysis and qualitative research to narrow the list of potential investments. Factors analyzed include:

n why the company has momentum today

n why it may have fundamental momentum in the future

n sources of potential earnings upside and downside

n the competitive landscape and/or the company’s competitive advantages

n traditional balance sheet and cash flow analysis

n risk factors (including valuation).

4RE-EVALUATE FEEDBACK

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Portfolio construction & risk controlsn Risk models help construct portfolios

to meet investor objectivesn Suggested portfolios must be

executable, otherwise process is restarted

Quantitive discoveryn Propriety computer models scour

globe searching for positive fundamental change ideas

Fundamental confirmationn Fundamental analysts research

new names to confirm their suitability for investment

n Analysts also search for new ideas that fit our discipline

Dynamic monitoringn Fundamental team monitors earnings

reports and news flow that could affect holdings

n Quantitive team monitors ranking changes

n Portfolio is adjusted and regularly balanced

Picton Mahoney uses powerful risk-control software that helps set an efficient weighting of the best-ranked stocks, so that investors get the benefits of its momentum strategy without excessive levels of risk. Portfolio construction takes into account such factors as:

n security, industry and sector concentration

n geography

n market capitalization

n liquidity

n valuation

To further manage portfolio risk, Picton Mahoney continually monitors all positions in its portfolios with the objective of quickly eliminating companies with sudden deterioration in their fundamentals. In addition, the overall portfolio characteristics and weightings are reviewed on a regular basis.

n CI Canadian Small/Mid Cap Fund

n Synergy American Fund*

n Synergy Canadian Corporate Class

n Synergy Global Corporate Class

n Synergy Tactical Asset Allocation Fund

Co-manager:

n CI American Managers® Corporate Class*Also available in CI Corporate Class

Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. ®CI Investments, the CI Investments design and American Managers are registered trademarks of CI Investments Inc. First published April 2012.

Portfolio construction & risk management Synergy funds

1303-0482_E (05/13)

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

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