Semi-Annual Financial Statements - June 30, 2019 · Annual Financial Statements. Under Canadian securities laws (National Instrument 81-106), if an auditor has not reviewed the Semi-Annual

CI Segregated Funds

Semi-Annual Financial Statements - June 30, 2019

Table of Contents

Semi-Annual Financial Statements - June 30, 2019

Equity Fund(s)

CI Global Segregated Fund .......................................................................................................... 1

CI Global Value Segregated Fund ................................................................................................ 7

CI Harbour Segregated Fund ....................................................................................................... 13

CI Synergy American Segregated Fund ....................................................................................... 19

Balanced Fund(s)

CI Harbour Growth & Income Segregated Fund .......................................................................... 25

Income Fund(s)

CI Money Market Segregated Fund ........................................................................................... 31

Notes to the Financial Statements ...................................................................................... 37

Legal Notice ............................................................................................................................. 40

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 Fund’s independent auditors have not performed a review of these Semi-Annual Financial

Statements in accordance with standards established by the Chartered Professional Accountants

of Canada.

– 1 –Semi-Annual Financial Statements - June 30, 2019

CI Global Segregated Fund

2019 2018

- - - - - - 10 33

73 13

- - - - 83 46

6 9 1 1 3 4 1 1 11 15

72 31

1.87 0.64

38,239 48,813

as at as atJun. 30, 2019 Dec. 31, 2018

685 640 2 2 - - - - - - - - - - 687 642

- - - - 1 - - - - - - - 1 - 686 642

549 577

18.20 16.37

For inception date of the Fund, please refer to Note 1 in the Notes to the Financial Statements.The accompanying notes are an integral part of these financial statements.

Financial Statements (unaudited)

CIG - 025

Statements of Financial Position (in $000’s except for per unit amounts)

Statements of Comprehensive Income for the periods ended June 30 (in $000’s except for per unit amounts and number of units)

Assets Current assets Investments* Cash Fees rebate receivable Dividends receivable Interest receivable Receivable for investments sold Receivable for unit subscriptions

Liabilities Current liabilities Bank overdraft Payable for investments purchased Payable for unit redemptions Management fees payable Administration fees payable Insurance fees payable

Net assets attributable to contractholders

*Investments at cost

Net assets attributable to contractholders per unit: Class A

Income Net gain (loss) on investments Dividends Income distributions from investments Capital gain distributions from investments Net realized gain (loss) on sale of investments Change in unrealized appreciation (depreciation) in value of

investments Other income Interest Fees rebate (Note 6)

Expenses (Note 6) Management fees Administration fees Insurance fees Harmonized sales tax

Increase (decrease) in net assets from operations attributable to contractholders

Increase (decrease) in net assets from operations attributable to contractholders per unit: Class A

Weighted average number of units: Class A



*Dividends and interest received as well as dividends and interest paid relate to operating activities of the Fund. The accompanying notes are an integral part of these financial statements.


2019 2018

642 915

72 31

28 9 (56) (180) (28) (171)

686 775

FundNet assets attributable to contractholders at the beginning of period Increase (decrease) in net assets from operations attributable to contractholders Unit transactions Proceeds from issuance of units Amounts paid on redemption of units

Net assets attributable to contractholders at the end of period

Statements of Changes in Net Assets Attributable to Contractholdersfor the periods ended June 30 (in $000’s)

2019 2018

72 31

(10) (33)

(73) (13) 65 104 (27) - - - - - - - - - - - - - - - 27 89

28 9 (55) (180) (27) (171)

- (82) 2 3 2 (79)

- - - - - - - -

Statements of Cash Flowsfor the periods ended June 30 (in $000’s)

Cash flows from (used in) operating activities Increase (decrease) in net assets from operations attributable to contractholders Adjustments for: Net realized (gain) loss on sale of investments Change in unrealized (appreciation) depreciation in value of

investments Proceeds from sale of investments Purchase of investments Non-cash distributions from investments (Increase) decrease in fees rebate receivable (Increase) decrease in dividends receivable (Increase) decrease in interest receivable Increase (decrease) in management fees payable Increase (decrease) in administration fees payable Increase (decrease) in insurance fees payable Net cash from (used in) operating activities

Cash flows from (used in) financing activities Proceeds from issuance of unitsAmounts paid on redemption of unitsNet cash from (used in) financing activities

Net increase (decrease) in cashCash (bank overdraft), beginning of periodCash (bank overdraft), end of period

Supplementary Information: Dividends received, net of withholding tax*Interest received*Dividends paid*Interest paid*



† The Underlying Fund is also managed by CI Investments Inc., the Manager of the Fund.Percentages shown in brackets in the Schedule of Investment Portfolio relate investments at fair value to net assets attributable to contractholders of the Fund. The accompanying notes are an integral part of these financial statements.

Schedule of Investment Portfolioas at June 30, 2019 (unaudited)

No. ofUnits/Shares Description

AverageCost ($)

FairValue ($)

21,711 Signature Global Equity Fund (Class I)† 548,555 684,553 Total Investments (99.8%) 548,555 684,553 Other Net Assets (Liabilities) (0.2%) 1,580 Net Assets Attributable to Contractholders (100.0%) 686,133

Top 25 Holdings of the Underlying Fundas at June 30, 2019 (unaudited)


AverageCost ($)

FairValue ($)

Cash & Equivalents 38,512,795 36,250 Microsoft Corp. 2,794,970 6,359,499 35,300 SPDR Gold Trust 5,922,911 6,157,702 118,322 Synchrony Financial 4,750,920 5,372,286 127,700 Advanced Micro Devices Inc. 1,797,832 5,078,968 69,250 Sony Corp. 2,456,474 4,751,552 1,890 Amazon.com Inc. 2,114,403 4,687,019 61,700 Marathon Petroleum Corp. 5,885,891 4,515,245 156,100 Prudential PLC 4,611,703 4,454,660 39,900 Merck & Co., Inc. 4,408,322 4,381,429 50,300 Royal Dutch Shell PLC, Class A, ADR 3,974,647 4,286,359 80,400 Samsung Electronics Co., Ltd. 2,154,170 4,276,357 78,853 Air Lease Corp. 3,982,315 4,269,023 61,500 Brookfield Asset Management Inc., Class A (USD) 3,167,650 3,848,230 14,100 Apple Inc. 2,868,001 3,654,673 274,944 SLM Corp. 3,824,426 3,499,857 28,200 Novartis AG, Registered Shares 3,197,737 3,374,210 22,400 Texas Instruments Inc. 3,277,853 3,366,498 212,300 Ping An Insurance (Group) Co. of China Ltd., Shares H 2,703,995 3,338,487 10,300 UnitedHealth Group Inc. 2,424,497 3,291,430 57,800 Pfizer Inc. 3,289,021 3,279,111 23,950 Nestle S.A., Registered Shares 2,145,214 3,246,706 50,807 Wells Fargo & Co. 2,921,039 3,148,532 82,533 Bank of America Corp. 3,112,390 3,134,479 13,700 Honeywell International Inc. 2,453,921 3,132,418

Financial statements for the underlying CI mutual fund, including information on the holdings of the underlying fund, are available in electronic format on the fund manager’s website at www.ci.com.




Fund Specific Notes to Financial Statements (unaudited)

Unit Transactions (Note 5)for the periods ended June 30

Number of units at the beginning of periodUnits issued for cashUnits redeemed Number of units at the end of period

Class A 2019 2018 39,225 51,256 1,669 497 (3,200) (9,790) 37,694 41,963

Interest in Underlying Fund (Note 2)

The following tables present the Fund’s interest in the Underlying Fund.

as at June 30, 2019 Fair Value of

the Underlying FundFair Value of the Fund’s Investment

in the Underlying FundOwnership

in the Underlying Fund

Underlying Fund (in $000’s) (in $000’s) (%)Signature Global Equity Fund 297,797 685 0.2

as at December 31, 2018Fair Value of




Underlying Fund (in $000’s) (in $000’s) (%)Signature Global Equity Fund 275,694 640 0.2



Financial Highlights The following table shows selected key financial information about the Fund and is intended to help you understand the Fund’s financial performance for the past six periods.

The Fund’s Net Asset Value per UnitNet assets attributable to contractholders per unit at the end of the period shown ($) (1)

Ratios and Supplemental DataNet assets ($000’s) (1)

Number of units outstanding (1)

Portfolio turnover rate (%) (2)

Management Expense RatioManagement expense ratio before taxes (%) (3)

Harmonized sales tax (%) (3)

Management expense ratio after taxes (%) (3)

Effective HST rate for the period (%) (3)


Financial Information (for the period ended June 30, 2019 and the years ended December 31) (unaudited)

Class A Jun. 30, 2019 Dec. 31, 2018 Dec. 31, 2017 Dec. 31, 2016 Dec. 31, 2015 Dec. 31, 2014

18.20 16.37 17.86 15.70 15.39 14.01

686 642 915 872 975 1,224 37,694 39,225 51,256 55,530 63,366 87,367 3.98 - - 101.00 9.24 -

3.22 3.22 3.29 3.15 3.22 3.22 0.26 0.27 0.27 0.26 0.26 0.23 3.48 3.49 3.56 3.41 3.48 3.45 11.08 11.31 11.32 11.28 10.88 11.12

(1) This information is provided for the period ended June 30, 2019 and December 31 of the years shown. (2) The Fund’s portfolio turnover rate indicates how actively the Fund’s portfolio advisor manages its portfolio investments. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the

course of the period. The higher a fund’s portfolio turnover rate in a period, the greater the trading costs payable by the fund in the period, and the greater the chance of a contractholder receiving taxable capital gains in the period. There is not

necessarily a relationship between a high turnover rate and the performance of a fund. (3) Management expense ratio is calculated based on expenses charged directly to the Fund plus, if applicable, expenses of the underlying fund, calculated on a weighted average basis on the percentage weighting of the underlying fund and is

expressed as an annualized percentage of average net assets for the periods shown. The Effective HST tax rate is calculated using the attribution percentage for each province based on contractholders’ residency and can be different from 13%.



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

Concentration Risk (cont’d)

as at December 31, 2018 (cont’d) Categories Net Assets (%)Italy 0.9Denmark 0.8Belgium 0.7Bermuda 0.6Panama 0.5Austria 0.5Czech Republic 0.5Exchange-Traded Fund(s) 0.4Russia 0.4Jersey Island 0.3Israel 0.0Other Net Assets (Liabilities) (0.2)Foreign Currency Forward Contracts (0.3)

During the six-month period ended June 30, 2019, the Fund’s credit risk exposure changed significantly as disclosed in the section below. For details relating to other price risk, currency risk, interest rate risk and fair value hierarchy, refer to the audited annual financial statements as at December 31, 2018, as the Fund’s exposure to those risks remains unchanged.

Credit RiskThe Fund indirectly bears the credit risk exposure of the Underlying Fund. As at June 30, 2019 and December 31, 2018, the Underlying Fund has insignificant exposure to credit risk as it is invested predominantly in stocks and derivatives.

The Underlying Fund was invested in fixed income securities, preferred securities and derivative instruments, if any, with the following credit ratings, as per the table below.

as at June 30, 2019Credit Rating^ Net Assets (%)AAA/Aaa/A++ 0.1AA/Aa/A+ 0.3Not Rated 0.5Total 0.9

^Credit ratings are obtained from S&P Global Ratings, where available, otherwise ratings are obtained from: Moody’s

Investors Service or Dominion Bond Rating Service, respectively.

Concentration RiskThe Signature Global Equity Fund’s financial instruments were concentrated in the following segments:

as at June 30, 2019 Categories Net Assets (%)U.S.A. 41.7 Cash & Equivalents 12.9 U.K. 7.1 Canada 4.8 France 3.8 Japan 3.3 Switzerland 2.9 China 2.7 Netherlands 2.4 Exchange-Traded Fund(s) 2.1 Ireland 1.8 India 1.8 Brazil 1.4 South Korea 1.4 Belgium 1.3 Spain 1.3 Germany 1.1 Austria 0.9 Bermuda 0.8 Denmark 0.8 Italy 0.7 Hong Kong 0.6 Russia 0.5 Panama 0.5 Guernsey 0.5 Sweden 0.4 Indonesia 0.4 British Virgin Islands 0.4 Foreign Currency Forward Contracts 0.3 Mexico 0.3 Israel 0.0 Other Net Assets (Liabilities) (0.9)

as at December 31, 2018 Categories Net Assets (%)U.S.A. 48.6Cash & Equivalents 9.2Canada 7.3U.K. 5.0France 4.5Switzerland 4.1Japan 3.6Netherlands 2.8Germany 1.8Spain 1.7Ireland 1.6South Korea 1.5Finland 1.2China 1.1Sweden 0.9


Financial Instruments Risks (Note 8)


CI Global Value Segregated Fund

2019 2018

- - - - - - 1 2

34 21

- - - - 35 23

5 5 1 1 2 2 1 1 9 9

26 14

0.96 0.47

26,862 30,091

as at as atJun. 30, 2019 Dec. 31, 2018

469 418 1 - - - - - - - - 2 - - 470 420

- - - - - - - - - - - - - - 470 420

411 394

17.49 16.54



CIG - 024










Expenses (Note 6)Management fees Administration fees Insurance fees Harmonized sales tax








2019 2018

420 512

26 14

27 - (3) (11) 24 (11)

470 515




2019 2018

26 14

(1) (2)

(34) (21) 13 19 (27) - - - - - - - - - - - - - - - (23) 10

27 - (3) (11) 24 (11)

1 (1) - 1 1 -

- - - - - - - -












AverageCost ($)

FairValue ($)

18,684 CI Global Value Fund (Class I)† 411,453 468,730 Total Investments (99.6%) 411,453 468,730 Other Net Assets (Liabilities) (0.4%) 1,705 Net Assets Attributable to Contractholders (100.0%) 470,435



AverageCost ($)

FairValue ($)

32,139 Comcast Corp., Class A 829,390 1,779,537 8,726 Chubb Ltd. 1,198,172 1,683,171 3,685 Zurich Financial Services AG 1,408,745 1,680,145 6,478 Willis Towers Watson PLC 772,224 1,624,951 14,303 Sanofi S.A. 1,550,760 1,616,913 82,925 Astellas Pharma Inc. 1,540,064 1,546,375 55,104 GlaxoSmithKline PLC 1,439,935 1,444,771 5,421 Aon PLC 400,410 1,370,034 8,485 Heineken N.V. 739,024 1,240,105 18,395 Tokio Marine Holdings Inc. 681,982 1,206,519 16,519 Hartford Financial Services Group Inc. 985,367 1,205,410 10,656 Intercontinental Exchange Inc. 464,529 1,199,304 54,637 Vodafone Group PLC, ADR 1,782,826 1,168,457 187,087 Mitsubishi UFJ Financial Group Inc. 1,262,231 1,163,683 10,446 Danone S.A. 955,055 1,158,955 24,411 Sumitomo Mitsui Trust Holdings Inc. 1,146,739 1,158,347 19,338 Bristol-Myers Squibb Co. 1,281,150 1,148,494 8,288 Nestle S.A., Registered Shares 531,101 1,123,537 2,304 Nintendo Co., Ltd. 635,466 1,105,327 8,142 Medtronic PLC 643,894 1,038,449 7,495 Swiss Reinsurance Company Ltd. 899,786 997,738 181,452 Kinross Gold Corp. 899,623 918,147 1,685 Charter Communications Inc. 659,473 872,036 266,698 BT Group PLC 1,209,921 871,341 6,650 Henkel AG & Co., KGaA, Preferred, Non-Voting Shares 888,704 851,886








Class A 2019 2018 25,430 30,436 1,637 - (168) (596) 26,899 29,840







Underlying Fund (in $000’s) (in $000’s) (%)CI Global Value Fund 58,715 469 0.8





Underlying Fund (in $000’s) (in $000’s) (%)CI Global Value Fund 56,401 418 0.7















17.49 16.54 16.81 15.92 15.15 13.31

470 420 512 506 527 495 26,899 25,430 30,436 31,795 34,773 37,169 2.26 0.98 2.84 115.37 0.60 0.41

3.22 3.22 3.30 3.14 3.22 3.23 0.27 0.27 0.28 0.26 0.27 0.25 3.49 3.49 3.58 3.40 3.49 3.48 11.52 11.47 11.53 11.50 11.41 11.19








Concentration RiskThe CI Global Value Fund’s financial instruments were concentrated in the following segments:

as at June 30, 2019 Categories Net Assets (%)U.S.A. 33.8 Japan 15.0 Switzerland 12.4 U.K. 12.0 Ireland 5.5 France 4.7 Germany 4.4 Netherlands 2.7 Canada 1.6 Cash & Equivalents 1.4 Cayman Islands 1.1 Brazil 0.9 Curacao 0.9 Mexico 0.9 Israel 0.8 South Korea 0.7 Luxembourg 0.7 Turkey 0.5 Foreign Currency Forward Contracts 0.0 Other Net Assets (Liabilities) 0.0

as at December 31, 2018 Categories Net Assets (%)U.S.A. 35.2Japan 14.6Switzerland 13.8U.K. 11.9Ireland 5.7France 4.0Netherlands 3.1Germany 1.5Canada 1.5Cayman Islands 1.5Israel 1.2Mexico 1.0Curacao 0.9Brazil 0.9Luxembourg 0.7Turkey 0.6Cash & Equivalents 0.6Other Net Assets (Liabilities) 0.5Jersey Island 0.5India 0.3Foreign Currency Forward Contracts 0.0

For details relating to credit risk, other price risk, currency risk, interest rate risk and fair value hierarchy, refer to the audited annual financial statements as at December 31, 2018, as the Fund’s exposure to those risks remains unchanged.




CI Harbour Segregated Fund

2019 2018

- - - - - - 1 16

308 24

- - - - 309 40

33 47 4 6 13 19 4 6 54 78

255 (38)

2.18 (0.24)

116,745 160,730

as at as atJun. 30, 2019 Dec. 31, 2018

3,302 3,375 8 - - - - - - - 1 9 - - 3,311 3,384

- 5 - - - - - - - - - - - 5 3,311 3,379

3,173 3,554

29.22 27.10



CIG - 021


















2019 2018

3,379 5,027

255 (38)

9 - (332) (593) (323) (593)

3,311 4,396




2019 2018

255 (38)

(1) (16)

(308) (24) 390 511 - - - - - - - - - - - - - - - - 336 433

9 - (332) (550) (323) (550)

13 (117) (5) 19 8 (98)

- - - - - - - -












AverageCost ($)

FairValue ($)

159,892 Harbour Fund (Class I)† 3,173,018 3,302,168 Total Investments (99.7%) 3,173,018 3,302,168 Other Net Assets (Liabilities) (0.3%) 8,512 Net Assets Attributable to Contractholders (100.0%) 3,310,680



AverageCost ($)

FairValue ($)

721,324 Toronto-Dominion Bank 45,643,933 55,195,712 54,095,373 Short-Term Investments 54,095,372 54,934,837 522,636 Royal Bank of Canada 42,729,974 54,390,729 633,711 The Bank of Nova Scotia 48,003,241 44,575,232 670,487 Brookfield Asset Management Inc., Class A (USD) 36,142,470 41,954,280 478,899 Thomson Reuters Corp. 26,389,988 40,457,388 383,138 TMX Group Ltd. 25,670,246 34,903,872 417,028 Alimentation Couche-Tard Inc., Class B 28,348,741 34,367,277 654,231 Dollarama Inc. 25,175,848 30,140,422 193,901 Canadian National Railway Co. 10,012,919 23,500,801 166,500 Fiserv Inc. 18,828,499 19,877,343 403,594 Pembina Pipeline Corp. 18,278,947 19,675,208 335,982 Sun Life Financial Inc. 17,638,489 18,220,304 430,486 Suncor Energy Inc. 15,850,549 17,585,353 626,199 Northland Power Inc. 14,537,747 15,968,075 53,434 S&P Global Inc. 13,561,733 15,940,139 805,356 Boralex Inc., Class A 16,109,954 15,857,460 89,459 Microsoft Corp. 12,901,451 15,694,191 324,022 Enbridge Inc. 15,475,298 15,326,241 101,305 JPMorgan Chase & Co. 15,265,256 14,832,435 161,304 London Stock Exchange Group PLC 11,906,637 14,716,187 77,888 Dollar General Corp. 12,066,680 13,786,642 320,587 Americold Realty Trust 13,950,449 13,611,271 1,069,377 Cenovus Energy Inc. 14,525,212 12,351,304 39,689 Canadian Pacific Railway Ltd. 6,152,264 12,241,278








Class A 2019 2018 124,678 169,787 313 - (11,678) (20,216) 113,313 149,571







Underlying Fund (in $000’s) (in $000’s) (%)Harbour Fund 881,960 3,302 0.4





Underlying Fund (in $000’s) (in $000’s) (%)Harbour Fund 1,241,948 3,375 0.3















29.22 27.10 29.61 28.27 28.49 30.32

3,311 3,379 5,027 5,239 6,364 7,851 113,313 124,678 169,787 185,351 223,363 258,945 - 1.76 4.74 93.77 15.19 10.69

3.07 3.07 3.14 3.01 3.07 3.07 0.27 0.27 0.28 0.27 0.27 0.25 3.34 3.34 3.42 3.28 3.34 3.32 11.71 11.70 11.66 11.65 11.56 11.65








Currency RiskThe Fund indirectly bears the currency risk exposure of the Underlying Fund. As at June 30, 2019 and December 31, 2018, the Underlying Fund was exposed to currency risk, as some of its investments were denominated in currencies other than Canadian dollars, the functional currency of the Fund and the Underlying Fund. As a result, the Fund was affected by fluctuations in the value of such currencies relative to the Canadian dollar.

The tables below summarize the Underlying Fund’s exposure to currency risk.

as at June 30, 2019Currency Net Assets (%)U.S. Dollar 28.9Euro 2.2British Pound 1.5Hong Kong Dollar 1.2Swedish Krona 0.5Japanese Yen 0.0Total 34.3

as at December 31, 2018Currency Net Assets (%)U.S. Dollar 14.5 Japanese Yen 1.8 British Pound 0.7 Total 17.0

As at June 30, 2019, had the Canadian dollar strengthened or weakened by 10% (December 31, 2018 - 10%) in relation to all other foreign currencies held in the Underlying Fund, with all other variables held constant, net assets attributable to contractholders of the Fund would have decreased or increased, respectively, by approximately $113,000 (December 31, 2018 - $57,000). In practice, the actual results may differ from this analysis and the difference may be material.

Concentration RiskThe Harbour Fund’s financial instruments were concentrated in the following segments:

as at June 30, 2019 Categories Net Assets (%)Financials 40.4 Consumer Discretionary 10.9 Industrials 8.7 Energy 8.6 Information Technology 8.3 Consumer Staples 6.3 Short-Term Investments 6.2 Utilities 3.6 Materials 3.5 Real Estate 2.4 Cash & Equivalents 1.2 Health Care 0.6 Foreign Currency Forward Contracts (0.1)Other Net Assets (Liabilities) (0.6)

as at December 31, 2018 Categories Net Assets (%)Financials 30.1Short-Term Investments 18.6Cash & Equivalents 16.0Energy 7.0Materials 6.8Health Care 4.8Industrials 4.0Utilities 4.0Consumer Discretionary 3.9Information Technology 2.6Telecommunication Services 1.5Consumer Staples 1.3Real Estate 1.1Foreign Currency Forward Contracts (0.2)Other Net Assets (Liabilities) (1.5)

During the six-month period ended June 30, 2019, the Fund’s other price risk and currency risk exposure changed significantly as disclosed in the section below. For details relating to credit risk, interest rate risk and fair value hierarchy, refer to the audited annual financial statements as at December 31, 2018, as the Fund’s exposure to those risks remains unchanged.

Other Price Risk The Fund indirectly bears the other price risk exposure of the Underlying Fund. As at June 30, 2019 and December 31, 2018, the Underlying Fund was exposed to other price risk as its holdings were sensitive to changes in general economic conditions in Canada. The Underlying Fund was invested in Canadian stocks.

As at June 30, 2019, had the equities in the investment portfolio of the Underlying Fund increased or decreased by 10% (December 31, 2018 - 10%), with all other variables held constant, net assets attributable to contractholders of the Fund would have increased or decreased, respectively, by approximately $308,000 (December 31, 2018 - $227,000). In practice, actual results may differ from this analysis and the difference may be material.




CI Synergy American Segregated Fund

2019 2018

- - - - - - 4 8

57 25

- - - - 61 33

4 4 1 - 2 2 - 1 7 7

54 26

3.10 1.37

17,483 19,105

as at as atJun. 30, 2019 Dec. 31, 2018

389 345 2 1 - - - - - - - - - - 391 346

- - - - 1 - - - - - - - 1 - 390 346

282 295

22.56 19.47



CIG - 023


















2019 2018

346 400

54 26

- - (10) (44) (10) (44)

390 382




2019 2018

54 26

(4) (8)

(57) (25) 17 53 - - - - - - - - - - - - - - - - 10 46

- - (9) (44) (9) (44)

1 2 1 - 2 2

- - - - - - - -












AverageCost ($)

FairValue ($)

9,170 Synergy American Fund (Class I)† 282,079 388,730 Total Investments (99.6%) 282,079 388,730 Other Net Assets (Liabilities) (0.4%) 1,540 Net Assets Attributable to Contractholders (100.0%) 390,270



AverageCost ($)

FairValue ($)

Cash & Equivalents 12,405,219 63,900 Microsoft Corp. 5,412,168 11,210,262 3,000 Amazon.com Inc. 4,204,450 7,439,712 26,500 Apple Inc. 4,317,529 6,868,712 58,600 Abbott Laboratories Inc. 4,407,859 6,454,066 18,200 Mastercard Inc., Class A 3,023,956 6,305,014 58,700 The Progressive Corp. 3,749,375 6,144,516 41,300 Zoetis Inc. 2,919,785 6,138,290 41,800 JPMorgan Chase & Co. 4,358,452 6,120,091 22,600 NextEra Energy Inc. 3,414,291 6,063,249 18,000 UnitedHealth Group Inc. 3,376,417 5,752,014 76,000 Mondelez International Inc. 4,109,506 5,364,659 21,200 Facebook Inc. 4,895,280 5,358,373 35,400 PayPal Holdings Inc. 3,565,900 5,306,361 136,200 Bank of America Corp. 4,526,544 5,172,671 18,200 Norfolk Southern Corp. 2,478,171 4,750,987 22,200 Salesforce.com Inc. 2,927,467 4,411,276 26,500 Ingersoll-Rand PLC 3,256,345 4,396,018 25,900 Sun Communities Inc. 2,958,823 4,348,041 6,100 Intuitive Surgical Inc. 2,431,150 4,190,410 17,900 Honeywell International Inc. 2,267,928 4,092,721 9,000 Northrop Grumman Corp. 1,317,719 3,808,313 27,300 Camden Property Trust 3,128,366 3,732,169 16,800 IQVIA Holdings Inc. 3,113,460 3,540,015 47,100 Coca-Cola European Partners PLC 2,411,963 3,485,051








Class A 2019 2018 17,765 20,488 - - (464) (2,197) 17,301 18,291







Underlying Fund (in $000’s) (in $000’s) (%)Synergy American Fund 255,231 389 0.2





Underlying Fund (in $000’s) (in $000’s) (%)Synergy American Fund 215,023 345 0.2















22.56 19.47 19.54 17.68 17.60 15.31

390 346 400 400 414 611 17,301 17,765 20,488 22,613 23,491 39,933 - - - 113.06 5.21 -

3.12 3.11 3.23 3.04 3.12 3.11 0.26 0.26 0.27 0.25 0.26 0.27 3.38 3.37 3.50 3.29 3.38 3.38 11.34 11.19 11.03 10.97 11.17 11.92








Concentration RiskThe Synergy American Fund’s financial instruments were concentrated in the following segments:

as at June 30, 2019Categories Net Assets (%)Information Technology 23.9Health Care 15.6Industrials 13.4Financials 13.4Consumer Discretionary 9.3Cash & Equivalents 4.9Consumer Staples 4.2Real Estate 3.9Communication Services 3.3Utilities 3.0Energy 2.9Materials 2.2Other Net Assets (Liabilities) 0.0

as at December 31, 2018Categories Net Assets (%)Information Technology 22.6Health Care 17.1Financials 15.2Consumer Discretionary 11.0Industrials 9.8Cash & Equivalents 7.5Real Estate 4.5Energy 3.6Consumer Staples 3.2Materials 2.8Utilities 2.5Other Net Assets (Liabilities) 0.2





CI Harbour Growth & Income Segregated Fund

2019 2018

- - - - - - (50) (10)

295 (68)

- - - - 245 (78)

31 47 4 6 12 17 4 6 51 76

194 (154)

1.33 (0.78)

146,506 196,807

as at as atJun. 30, 2019 Dec. 31, 2018

3,152 3,227 10 - - - - - - - 2 23 - - 3,164 3,250

- 16 - - 2 - - - - - - - 2 16 3,162 3,234

3,500 3,870

22.05 20.74



CIG - 022


















2019 2018

3,234 5,135

194 (154)

- 6 (266) (765) (266) (759)

3,162 4,222




2019 2018

194 (154)

50 10

(295) 68 341 804 - - - - - - - - - - - - - - - - 290 728

- 6 (264) (754) (264) (748)

26 (20) (16) 22 10 2

- - - - - - - -












AverageCost ($)

FairValue ($)

191,443 Harbour Growth & Income Fund (Class I)† 3,499,951 3,152,469 Total Investments (99.7%) 3,499,951 3,152,469 Other Net Assets (Liabilities) (0.3%) 9,988 Net Assets Attributable to Contractholders (100.0%) 3,162,457



AverageCost ($)

FairValue ($)

148,699,000 Government of Canada 2% 06/01/2028 155,155,415 155,424,256 3,237,367 Manulife Financial Corp. 71,149,875 77,049,335 Cash & Equivalents 72,282,067 359,400 SPDR Gold Trust 59,308,642 62,693,435 854,052 The Bank of Nova Scotia 64,226,587 60,074,018 43,001,000 Province of Ontario 2.7% 06/02/2029 43,026,059 45,078,675 40,908,000 Province of Quebec 2.5% 09/01/2026 40,830,540 42,302,963 37,689,000 Province of Ontario 2.6% 06/02/2025 38,017,524 39,107,472 34,830,000 Province of Ontario 2.9% 06/02/2028 36,985,106 37,005,329 32,350,000 Province of Quebec 3.75% 09/01/2024 34,673,377 35,380,957 1,766,408 Corby Spirit and Wine Ltd., Class A 42,478,933 32,060,305 28,941,000 Province of Ontario 2.9% 06/02/2049 28,433,323 31,454,647 735,470 Suncor Energy Inc. 33,543,081 30,043,950 29,362,000 Government of Canada 1.75% 05/01/2021 29,460,810 29,507,342 25,638,000 Province of Quebec 3.1% 12/01/2051 26,738,950 29,399,515 364,346 Total S.A. 28,062,257 26,736,287 699,100 Canadian Natural Resources Ltd. 25,054,041 24,685,221 22,548,000 Province of Ontario 3.5% 06/02/2024 23,807,531 24,300,035 168,700 Nestle S.A., Registered Shares 19,313,630 22,869,283 22,118,000 Province of Ontario 2.4% 06/02/2026 21,910,402 22,685,403 73,200 Canadian Pacific Railway Ltd. 19,665,446 22,577,076 17,618,000 Government of Canada 2.75% 12/01/2048 21,332,931 21,954,891 446,000 Enbridge Inc. 21,109,273 21,095,800 1,068,028 Boralex Inc., Class A 16,648,752 21,029,471 190,100 Canadian Imperial Bank of Commerce 21,276,603 19,576,498








Class A 2019 2018 155,907 210,965 - 273 (12,454) (32,059) 143,453 179,179







Underlying Fund (in $000’s) (in $000’s) (%)Harbour Growth & Income Fund 1,983,958 3,152 0.2





Underlying Fund (in $000’s) (in $000’s) (%)Harbour Growth & Income Fund 2,168,095 3,227 0.1















22.05 20.74 24.34 23.81 22.28 22.86

3,162 3,234 5,135 5,410 5,863 7,009 143,453 155,907 210,965 227,198 263,192 306,594 - 4.89 5.54 102.58 11.09 1.36

2.99 2.99 3.06 2.92 2.98 2.99 0.26 0.25 0.26 0.25 0.25 0.24 3.25 3.24 3.32 3.17 3.23 3.23 10.98 10.86 10.91 10.91 10.81 10.49








Credit RiskThe Fund indirectly bears the credit risk exposure of the Underlying Fund. As at June 30, 2019 and December 31, 2018, the Underlying Fund was exposed to credit risk as some of its assets were invested in fixed income securities that bear an investment grade rating.

The Underlying Fund was invested in fixed income securities, preferred securities and derivative instruments, if any, with the following credit ratings, as per the tables below.

as at June 30, 2019Credit Rating^ Net Assets (%)AAA/Aaa/A++ 12.4AA/Aa/A+ 7.4A 14.2BBB/Baa/B++ 6.2Total 40.2

as at December 31, 2018Credit Rating^ Net Assets (%)AAA/Aaa/A++ 13.2 AA/Aa/A+ 3.1 A 5.2 BBB/Baa/B++ 17.4 BB/Ba/B+ 0.3 Total 39.2

^Credit ratings are obtained from S&P Global Ratings, where available, otherwise ratings are obtained from: Moody’s

Investors Service or Dominion Bond Rating Service, respectively.

Interest Rate RiskThe Fund indirectly bears the interest rate risk exposure of the Underlying Fund. As at June 30, 2019 and December 31, 2018, the Underlying Fund was exposed to interest rate risk as some of its assets were invested in fixed income securities.

The tables below summarize the Underlying Fund’s exposure to interest rate risk, categorized by the contractual maturity date.

as at June 30, 2019

Less than1 Year

1 - 3Years

3 - 5Years

Greaterthan

5 Years Total

(%) (%) (%) (%) (%)Interest Rate Exposure 3.9 4.2 4.1 31.4 43.6

as at December 31, 2018

Less than1 Year

1 - 3Years

3 - 5Years

Greaterthan

5 Years Total

(%) (%) (%) (%) (%)Interest Rate Exposure 5.9 9.4 4.0 19.4 38.7

As at June 30, 2019, had the prevailing interest rates increased or decreased by 0.25% (December 31, 2018 - 0.25%), with all other variables held constant, net assets attributable to contractholders of the Fund would have indirectly decreased or increased, respectively, by approximately $23,000 (December 31, 2018 - $18,000). In practice, the actual results may differ from this analysis and the difference may be material.

Concentration RiskThe Harbour Growth & Income Fund’s financial instruments were concentrated in the following segments:

as at June 30, 2019 Categories Net Assets (%)Financials 18.0 Provincial Bonds 16.6 Canadian Government Bonds 12.1 Corporate Bonds 11.2 Energy 7.0 Consumer Staples 6.5 Health Care 4.9 Industrials 4.2 Materials 3.9 Consumer Discretionary 3.6 Cash & Equivalents 3.6 Exchange-Traded Fund(s) 3.2 Information Technology 2.5 Utilities 2.3 Real Estate 0.7 Foreign Currency Forward Contracts 0.2 Warrants 0.1 Other Net Assets (Liabilities) (0.6)

as at December 31, 2018 Categories Net Assets (%)Long PositionsCorporate Bonds 23.4Financials 17.4Canadian Government Bonds 12.3Materials 10.9Energy 7.3Information Technology 6.7Utilities 6.5Consumer Discretionary 4.8Consumer Staples 3.7Cash & Equivalents 2.2Telecommunication Services 1.5Industrials 1.0Real Estate 0.9Foreign Government Bonds 0.7Option Contracts 0.7Health Care 0.2Short-Term Investments 0.2Other Net Assets (Liabilities) 0.1Warrants 0.0Foreign Currency Forward Contracts (0.4)Total Long Positions 100.1

Short PositionsFuture Contracts (0.1)Total Short Positions (0.1)

During the six-month period ended June 30, 2019, the Fund’s credit risk and interest rate risk exposure changed significantly as disclosed in the section below. For details relating to other price risk, currency risk and fair value hierarchy, refer to the audited annual financial statements as at December 31, 2018, as the Fund’s exposure to those risks remains unchanged.




CI Money Market Segregated Fund

2019 2018

- - 2 2 - - - -

- -

- - - - 2 2

1 1 - - - 1 - - 1 2

1 -

0.04 -

14,222 18,631

as at as atJun. 30, 2019 Dec. 31, 2018

173 204 1 - - - - - - - - 1 - - 174 205

- - - - - - - - - - - - - - 174 205

173 204

12.67 12.64



CIG - 020


















2019 2018

205 242

1 -

48 381 (80) (408) (32) (27)

174 215




2019 2018

1 -

- -

- - 82 230 (48) (200) (2) (2) - - - - - - - - - - - - 33 28

48 381 (80) (228) (32) 153

1 181 - - 1 181

- - - - - - - -












AverageCost ($)

FairValue ($)

17,338 CI Money Market Fund (Class I)† 173,379 173,379 Total Investments (99.8%) 173,379 173,379 Other Net Assets (Liabilities) (0.2%) 256 Net Assets Attributable to Contractholders (100.0%) 173,635



AverageCost ($)

FairValue ($)

65,476,000 Enbridge Pipelines Inc., 2.04438% 07/03/2019 65,377,131 65,472,323 Cash & Equivalents 63,951,013 26,439,000 TransCanada PipeLines Ltd., 1.91988% 07/24/2019 26,389,030 26,408,403 22,939,000 Canadian Imperial Bank of Commerce 2.50052% 11/01/2019 22,380,894 22,747,318 22,804,000 Manulife Bank of Canada 2.40007% 01/07/2020 22,273,807 22,520,606 22,473,000 Province of Alberta 1.74070% 09/10/2019 22,383,333 22,398,008 21,151,000 Province of British Columbia 1.74971% 07/17/2019 21,074,222 21,135,789 21,319,000 HSBC Bank Canada 2.25032% 02/26/2020 20,852,327 21,004,910 20,861,000 Inter Pipeline (Corridor) Inc., 2.00110% 07/09/2019 20,758,572 20,852,999 20,984,000 Toronto-Dominion Bank 2.48051% 11/29/2019 20,477,446 20,770,136 20,978,000 Royal Bank of Canada 1.99982% 03/25/2020 20,573,334 20,671,089 20,735,000 HSBC Bank Canada 2.35042% 09/25/2019 20,262,657 20,621,526 20,547,000 The Bank of Nova Scotia 2.32962% 01/23/2020 20,086,747 20,278,116 20,159,000 National Bank of Canada 2.14977% 07/17/2019 19,742,717 20,141,188 20,000,000 Manulife Bank of Canada 2.2025% 01/27/2020 20,000,000 20,000,000 20,313,000 Royal Bank of Canada 1.96982% 04/21/2020 19,924,819 19,990,674 19,951,000 Bank of Montreal 1.90046% 06/01/2020 19,579,911 19,603,087 19,470,000 Province of Ontario 1.75918% 07/03/2019 19,390,562 19,469,061 19,070,000 Province of Ontario 1.76141% 07/31/2019 18,998,488 19,043,333 18,090,000 HSBC Bank Canada 2.18125% 07/10/2019 18,090,000 18,090,000 16,900,000 Enterprise Rent-A-Car Canada Ltd., 2.00057% 09/10/2019 16,825,302 16,835,178 16,661,000 First Banks, Inc., 1.80834% 08/15/2019 16,607,518 16,624,647 15,657,000 Suncor Energy Inc., 1.90953% 09/20/2019 15,582,003 15,591,112 15,221,000 Suncor Energy Inc., 1.95076% 08/21/2019 15,147,330 15,180,341 15,207,000 Province of Alberta 1.74946% 08/13/2019 15,146,020 15,176,378








Class A 2019 2018 16,186 19,196 3,838 30,163 (6,323) (32,300) 13,701 17,059







Underlying Fund (in $000’s) (in $000’s) (%)CI Money Market Fund 738,146 173 -





Underlying Fund (in $000’s) (in $000’s) (%)CI Money Market Fund 821,765 204 -















12.67 12.64 12.62 12.68 12.77 12.85

174 205 242 263 379 434 13,701 16,186 19,196 20,720 29,668 33,758 28.05 239.88 133.52 155.93 175.07 139.90

1.40 1.41 1.40 1.40 1.40 1.40 0.14 0.14 0.13 0.13 0.13 0.12 1.54 1.55 1.53 1.53 1.53 1.52 12.49 12.11 11.62 11.98 11.29 12.31








Concentration RiskThe CI Money Market Fund’s financial instruments were concentrated in the following segments:

as at June 30, 2019 Categories Net Assets (%)Short-Term Investments 81.8 Corporate Bonds 9.6 Cash & Equivalents 8.7 Other Net Assets (Liabilities) (0.1)

as at December 31, 2018 Categories Net Assets (%)Short-Term Investments 76.7Cash & Equivalents 13.7Corporate Bonds 9.5Other Net Assets (Liabilities) 0.1





CI Segregated Funds

1. THE FUNDS

The following funds were created by a board resolution of Foresters Life Insurance Company (formerly

Unity Life of Canada).

Funds Date

CI Global Segregated Fund October 28, 1997

CI Global Value Segregated Fund October 28, 1997

CI Harbour Growth & Income Segregated Fund October 28, 1997

CI Harbour Segregated Fund October 28, 1997

CI Money Market Segregated Fund October 28, 1997

CI Synergy American Segregated Fund October 28, 1997

(the “Fund” or collectively the “Funds” or the “CI Segregated Funds”)

Foresters Life Insurance Company (“Foresters Life”) is the sole issuer of the individual variable

insurance contract providing for investment in each Fund. The assets of each of the Funds are owned

by Foresters Life and are segregated from Foresters Life’s other assets. The Funds are not separate

legal entities but are separate reporting entities.

Foresters Life has appointed CI Investments Inc. (“CI” or the “Manager”) to perform certain

administrative and management services on its behalf in relation to the Funds and the contracts. The

head office of CI Investments Inc. is located at 2 Queen Street East, Twentieth Floor, M5C 3G7, Toronto,

Ontario. CI Investments Inc. is a subsidiary of CI Financial Corp.

Each Fund invests all of its net assets in a CI mutual fund (the “Underlying Funds”).

Effective December 31, 2000, the Funds were closed to new or additional contributions.

These financial statements were authorized for issue by the Manager on September 27, 2019.

The Statements of Financial Position are as at June 30, 2019 and December 31, 2018. The Statements

of Comprehensive Income, Statements of Changes in Net Assets Attributable to Contractholders and

Statements of Cash Flows are for the periods ended June 30, 2019 and 2018. Schedules of Investment

Portfolio are as at June 30, 2019. The Fund Specific Notes to Financial Statements for each Fund

consist of Interest in Underlying Fund as at June 30, 2019 and December 31, 2018, Unit Transactions

for the periods ended June 30, 2019 and 2018, and Financial Instruments Risks as at June 30, 2019

and December 31, 2018.

2. SIGNIFICANT ACCOUNTING POLICIES

These financial statements have been prepared in compliance with International Financial Reporting

Standards as published by the International Accounting Standards Board (“IFRS”). The following is a

summary of the significant accounting policies of the Funds:

a. Classification and recognition of financial instruments

Investment funds held by the Funds are classified as FVTPL in accordance with IFRS 9. Purchases

and sales of financial assets are recognized at their trade date. The Funds’ obligations for net

assets attributable to holders of redeemable units are presented at the redemption amount, which

approximates their fair value. All other financial assets and liabilities are measured at amortized cost,

which approximates their fair value. Under this method, financial assets and liabilities reflect the

amount required to be received or paid, discounted, when appropriate, at the effective rate of interest.

b. Fair value of financial investments

At the financial reporting date, listed securities are valued based on the last traded market price

for financial assets and financial liabilities where the last traded price falls within the day’s bid-ask

spread. In circumstances where the last traded price is not within the bid-ask spread, the Manager

determines the point within the bid-ask spread that is most representative of fair value based on the

existing market conditions. Unlisted securities are valued based on price quotations received from

recognized investment dealers, or failing that, their fair value is determined by the Manager on the

basis of the latest reported information available. Underlying Funds are valued on each business day

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

c. Cash

Cash is comprised of cash on deposit. Bank overdraft are shown in current liabilities in the Statements

of Financial Position.

d. Cost of investments

Cost of investments represents the amount paid for each security and is determined on an average

cost basis.

e. Investment transactions

Investment transactions are accounted for on the trade date. Realized gains and losses on sales of

investments and unrealized appreciation or depreciation in value of investments are calculated on an

average cost basis.

f. Income recognition

Distributions from investments are recorded on the ex-distribution date and interest income is accrued

on a daily basis. Distributions received from investment fund holdings are recognized by the Funds in

the same form in which they were received from the Underlying Funds.

g. Foreign exchange

The Funds’ subscriptions and redemptions are denominated in Canadian dollars, which is also the

Funds’ functional and presentation currency.

h. Net asset value per unit

Net asset value (“NAV”) per unit is calculated at the end of each day on which the Toronto Stock

Exchange is open for business by dividing the total net asset value by its outstanding units.

i. Classification of units

The units of each of the Funds have been classified as liabilities under IAS 32, as the contractholders

have the right to require the issuer to redeem them at their NAV.

j. Increase (decrease) in net assets from operations attributable to contractholders per unit

Increase (decrease) in net assets from operations attributable to contractholders per unit is calculated

by dividing the increase (decrease) in net assets from operations attributable to contractholders of a

Fund by the weighted average number of units outstanding during the period.

k. Consolidated financial statements

Under IFRS 10, Consolidated Financial Statements, a Fund is required to provide consolidated financial

statements if it has control over the entities it invests in. In October 2013, the IASB issued an

“Investment Entity” amendment to IFRS 10, which provides an exception to consolidation for an entity

that meets the definition of Investment Entity. The Manager has determined that all Funds satisfy the

criteria of an Investment Entity.

Notes to the Financial Statements (unaudited)


CI Segregated Funds

l. Investments in associates, joint ventures, subsidiaries and structured entities

Subsidiaries are entities, including investments in other investment entities, over which a Fund has

control. A Fund controls an entity when it is exposed to, or has rights to, variable returns from its

involvement with the entity, and has the ability to affect those returns through its power over the

entity. Associates and joint ventures are investments over which a Fund has significant influence or

joint control. Conversely, structured entities are entities that have been designed such that voting

or similar rights are not the dominant factors in determining control over the entity, such as when

voting rights relate to administrative tasks only and the relevant activities are directed by means of

contractual arrangements.

For all Funds that invest in Underlying Funds, the Manager has determined that the bottom investee

funds meet the definition of a structured entity to the top (investing) Funds.

Information related to the Funds’ Interest in Underlying Funds for each Fund appears under the Fund

Specific Notes to Financial Statements.

m. Non-zero amounts

Some of the balances reported in the financial statements include amounts that are rounded to zero.

3. USE OF ACCOUNTING JUDGMENTS AND ESTIMATES

The preparation of financial statements requires management to make judgments, estimates and

assumptions that affect the application of accounting policies and reported amounts of assets and

liabilities at the reporting date and the reported amounts of income and expenses during the reporting

period.

The following discusses the most significant accounting judgments and estimates that the Funds have

made in preparing their financial statements:

Fair value measurement of investments and derivatives not quoted in active market

The fair value of investments in underlying funds that are not quoted in active markets is

determined primarily by reference to the latest available net asset value of such units for each

underlying fund, as determined by the underlying funds’ managers.

4. INCOME TAXES

Each Fund is deemed to be a trust, referred to as a “related segregated fund trust” under the provisions

of the Income Tax Act (Canada) and is deemed to have allocated its income to the beneficiaries. Each

Fund’s net capital gains/(losses) are deemed to be those of the beneficiaries. Accordingly, the Funds

are not subject to income tax on their net income, including net realized capital gains for the year.

A Fund may elect each year to realize capital gains/(losses) for the taxation year, to optimize the

allocation of capital gains/(losses) between redeeming and continuing beneficiaries.

5. CONTRACTHOLDERS UNITS

Units issued and outstanding represent the capital of each Fund.

The relevant changes pertaining to subscriptions and redemptions of each Fund’s units are disclosed

in the Statements of Changes in Net Assets Attributable to Contractholders. In accordance with the

objectives and risk management policies outlined in Note 8, the Funds endeavor to invest subscriptions

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

disposal of investments when necessary.

Unit Transactions information for each Fund appears under the Fund Specific Notes to Financial

Statements.

6. MANAGEMENT FEES AND OTHER EXPENSES

Foresters Life Insurance Company and CI charge the Funds an annual management fee.

The management fee is calculated as an annual percentage of the total NAV of each Fund at the end

of each day and is paid at the end of each month.

CI Investments Inc. is the Manager of the Funds and the Underlying Funds, and in consideration of

management fees received, provides management services required in the day-to-day operations of

the Funds and the Underlying Funds including the management of the investment portfolios of the

Underlying Funds.

A Fund that invests in units of an Underlying Fund will not pay a duplicate management and

administration fee on the portion of assets that are invested in units of the Underlying Fund. During the

reporting period, a Fund may have received a management and/or administration fee rebate from the

Underlying Fund’s Manager relating to its investment in an Underlying Fund. The rebates are included

in “Fees rebate receivable” and in “Fees rebate” as reflected in the Statements of Financial Position

and Statements of Comprehensive Income of each Fund, as applicable. The management fees and the

fees rebate reported in the Statements of Comprehensive Income of each Fund are each presented

on a gross basis.

In addition to the management fee, the Funds and the Underlying Funds also bear all operating and

administrative expenses including audit and legal fees, transfer agency fees, custody fees, expenses

relating to reporting and making distributions to contractholders, all other costs and fees imposed by

statute or regulation and expenses of all communications with contractholders.

The administration fee is calculated as an annual percentage of the total NAV of each Fund at the end

of each business day and paid at the end of each month.

The Funds pay an insurance fee to Foresters Life. The insurance fees payable at period-end are

included in the “Insurance fees payable” in the Statements of Financial Position, while insurance

fees expense for the period are included in the “Insurance fees” in the Statements of Comprehensive

Income.

7. RELATED PARTY TRANSACTIONS

A Fund may invest in an Underlying Fund that is also managed by CI Investments Inc., the Manager

of the Funds. For details refer to the Fund Specific Notes to Financial Statements or the Schedule of

Investment Portfolio of each Fund.

The management fees paid to CI Investments Inc. are also considered a related party transaction. For

more details refer to Note 6.

8. FINANCIAL INSTRUMENTS RISK

Risk management

The Funds invest in units of Underlying Funds and are exposed to a variety of financial instruments

risks: credit risk, liquidity risk and market risk (including other price risk, currency risk and interest rate

risk). The level of risk to which each Fund is exposed depends on the investment objective and the

type of investments held by the Underlying Funds. The value of investments within an Underlying Fund

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

Notes to the Financial Statements (unaudited) (cont’d)


CI Segregated Funds

conditions and company specific news related to investments held by the Underlying Fund and this will

affect the value of each of the Funds. The Manager of the Underlying Funds may minimize potential

adverse effects of these risks by, but not limited to, regular monitoring of the Underlying 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.

Concentration risk

Concentration risk arises as a result of the concentration of exposures within the same category,

whether it is a geographical allocation, asset type, industry sector or counterparty.

Details of each of the Funds’ exposure to concentration risk are available in the Fund Specific Notes

to Financial Statements.

Credit risk

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

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

worthiness of the debt issuer. The carrying amount of debt instruments represents the credit risk

exposure of each Underlying Fund. Credit risk exposure for derivative instruments is based on each

Underlying Fund’s unrealized gain on the contractual obligations with the counterparty as at the

reporting date. The credit risk exposure of the Funds’ other assets are represented by their carrying

amount as disclosed in the Statements of Financial Position.

The credit rating of the Foresters Life as at June 30, 2019 was A (December 31, 2018 – A).

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 redemptions of redeemable units. The Funds

invest all of their assets in Underlying Funds which can be readily disposed of.

Market risk

The Funds’ investments are subject to market risk which is the risk that the fair value of future cash

flows of a financial instrument will fluctuate due to changes in market conditions.

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 currency risk or interest rate 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 other price risk.

Currency Risk

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

Canadian dollars, the functional currency of the Funds and the Underlying Funds. As a result, the

Underlying Funds may be exposed to the risk that the value of securities denominated in other

currencies will fluctuate due to changes in exchange rates. Equities traded in foreign markets are

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

Underlying Funds’ functional currency to determine their fair value.

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 Underlying

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 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 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 Funds exposure to interest rate sensitivity on short-term interest bearing investments is

minimal due to their short-term nature.

Fair value hierarchy

The Funds are required 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 and traded options.

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, if applicable, 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.

The Funds invest only in other investment funds and these investments are classified as Level 1.

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

classification changed significantly for some of the Funds as per details disclosed in the Fund Specific

Notes to Financial Statements of each of those Funds. For details relating to financial instruments

risk exposure including fair value hierarchy classification for remaining Funds refer to the audited

annual financial statements as at December 31, 2018, as these Funds’ exposure remained the same

throughout the period.

9. SUBSEQUENT EVENTS

On July 25, 2019, the Manager announced that effective December 31, 2019, Ernst & Young LLP will

replace PricewaterhouseCoopers LLP as the auditor to the Funds.

Notes to the Financial Statements (unaudited) (cont’d)


CI Segregated FundsLegal Notice

You can get additional copies of these Financial Statements at your request, and at no cost, by calling

1-800-792-9374, by emailing [email protected], or by asking your representative.

Foresters Life Insurance Company is the sole issuer of the individual variable annuity contract

providing for investment in CI Segregated Funds. A description of the key features of the applicable

individual variable annuity contract is contained in the CI Segregated Funds Information Folder.

SUBJECT TO ANY APPLICABLE DEATH AND MATURITY GUARANTEES, ANY AMOUNT

THAT IS ALLOCATED TO A SEGREGATED FUND IS INVESTED AT THE RISK OF THE

CONTRACTHOLDER(S) AND MAY INCREASE OR DECREASE IN VALUE.

Certain names, words, phrases, graphics or designs in this document may constitute trade

names, registered or unregistered trademarks or service marks of CI Investments Inc. CI Financial,

CI Investments, and the CI Investments design are registered trademarks of CI Investments Inc.

Trusted Partner in Wealth is a trademark of CI Investments Inc.

INFORMATION FOLDER: CI Investments Inc. would be pleased to provide, without charge, the most

recent Information Folder upon request by calling 1-800-792-9374 or emailing [email protected].

CISEG_SA_09/19E

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 514-875-0090 1-800-268-1602

Vancouver 604-681-3346 1-800-665-6994

Client Services English: 1-800-792-9355 French: 1-800-668-3528

Foresters Life Insurance Company

1660 Tech Avenue, Suite 3Mississauga, Ontario L4W 5S8Tel: 800-267-8777Tel: 905-219-8000Fax: 905-219-8157

Documents

Semi-Annual Financial Statements - June 30, 2019 · Annual Financial Statements. Under Canadian securities laws (National Instrument 81-106), if an auditor has not reviewed the Semi-Annual