Offering Class A, Class F and Class I units of
CI Global High Dividend Advantage Fund
(formerly called Global High Dividend Advantage Fund)
Amended and Restated Simplified Prospectus dated
February 23, 2006, amending and restating the
simplified prospectus dated January 23, 2006
No securities regulatory authority has expressed an opinion about these
securities and it is an offence to claim otherwise.
A look inside
INTRODUCTION............................................................................................................................................. 2
WHAT IS A MUTUAL FUND AND WHAT ARE THE RISKS OF INVESTING IN A MUTUAL FUND?2
SPECIFIC INFORMATION ABOUT THE CI GLOBAL HIGH DIVIDEND ADVANTAGE FUND.......... 4
PURCHASES, SWITCHES AND REDEMPTIONS ..................................................................................... 10
HOW TO SWITCH YOUR UNITS................................................................................................................ 14
OPTIONAL SERVICES................................................................................................................................. 15
FEES AND EXPENSES ................................................................................................................................. 17
DEALER COMPENSATION......................................................................................................................... 21
INCOME TAX CONSIDERATIONS FOR INVESTORS............................................................................. 22
WHAT ARE YOUR LEGAL RIGHTS? ........................................................................................................ 24
ADDITIONAL INFORMATION ................................................................................................................... 25
Introduction
In this document, fund refers to CI Global High Dividend Advantage Fund (formerly called Global High
Dividend Advantage Fund) and we, us, our and CI refer to the manager of the fund. Financial advisor means
a broker or dealer who is qualified to sell the units described in this document.
The simplified prospectus contains selected important information to help you make an informed investment
decision about the fund and to understand your rights as an investor.
Additional information about the fund is available in the following documents:
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the annual information form;
the fund’s most recently filed annual financial statements;
any interim financial statements filed after those annual financial statements;
the most recently filed annual management report of fund performance; and
any interim report of fund performance filed after that annual management report of fund
performance.
These documents are incorporated by reference into this simplified prospectus which means they legally form
part of this simplified prospectus just as if they were printed in it.
You can get a copy of these documents at your request and at no cost by calling 1-800-268-9374, by emailing [email protected], or by asking your financial advisor. You will also find these documents on our
website at www.ci.com.
These documents and other information about the fund are also available at www.sedar.com.
What is a mutual fund and what are the risks of investing in a mutual fund?
Building an investment portfolio is one of the most important financial decisions you can make. Choosing the
right investments can help you achieve your financial goals, such as preparing for retirement or saving for a
child’s education.
However, investing successfully can be difficult to do on your own. You need accurate and timely
information along with the right experience to build and maintain a portfolio of individual investments.
Mutual funds can make it easier.
A mutual fund brings together many different investors with similar goals. Each investor puts money into the
mutual fund. A professional portfolio advisor uses that cash to buy a variety of investments for the mutual
fund, depending on the mutual fund’s objectives.
When the investments make money, everyone who invests in the mutual fund benefits. If the value of the
investments falls, everyone shares in the loss. The size of your share depends on how much you invested. The
more you put in, the more units of the mutual fund you own and the greater your portion of the gains or
losses. Mutual fund investors also share the mutual fund’s expenses.
Most mutual funds invest in securities like stocks, bonds and money market instruments.
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Advantages of mutual funds
Investing in a mutual fund has several advantages over investing in individual stocks, bonds and money
market instruments on your own:
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Professional money management. Professional portfolio advisors have the skills and the time to do
research and make decisions about which investments to buy, hold or sell.
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Diversification. Investment values are always changing. Owning several investments can improve
long-term results because the ones that increase in value can compensate for those that do not. Mutual
funds typically hold 30 or more different investments.
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Accessibility. You can sell your investment back to the mutual fund at any time. This is called a
redemption, and in some cases may result in a redemption fee or a short-term trading fee. With many
other investments, your money is locked in or you have to find a specific buyer before you can sell.
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Record keeping and reporting. Mutual fund companies use sophisticated record keeping systems
and send you regular financial statements, tax slips and reports.
Mutual funds are not guaranteed
While mutual funds have many advantages, it is important to remember that an investment in a mutual fund is
not guaranteed. Unlike bank accounts or guaranteed investment certificates, mutual fund investments are not
covered by the Canada Deposit Insurance Corporation or any other government deposit insurer.
Under exceptional circumstances, a mutual fund may suspend your right to sell your investment. See
“Suspending your right to sell units” on page 14 for details.
Risk and potential return
As with most other investments, mutual funds come with a certain amount of risk. The value of the
investments in a mutual fund changes from day to day because of changes in interest rates, economic
conditions and market or company news. As a result, the value of mutual fund units will vary. When you sell
your units of a mutual fund, you could get less money than you put in.
The amount of risk depends on the kind of fund you buy. Money market funds generally have low risk. They
hold relatively safe short-term investments such as government treasury bills and other high quality money
market instruments. Income funds, which typically invest in bonds, have a higher amount of risk because their
prices can change when interest rates change. Equity funds generally have the highest risk because they invest
mostly in stocks whose prices can rise and fall daily.
Before you invest in a mutual fund, you need to decide what level of risk you are comfortable with. The
answer depends in part on the kind of returns you expect. Generally, higher risk investments have a higher
potential for gains and losses, while lower risk investments have a lower potential for gains and losses.
Another important factor is time. Think about how soon you will need the money. If you are saving to buy a
house in the near future, you will probably want a lower risk investment to reduce the chance of the mutual
fund value dropping just when you need the cash. If you are investing for retirement in 20 years, your
investment horizon is much longer. You may be able to afford to put more emphasis on equity funds because
there is more time for the mutual funds to recover if prices should fall.
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But potential return and your time horizon are not the only yardsticks for successful investing. Your choice of
mutual fund also depends on how you feel about risk. An investor who checks mutual fund prices every week
and worries when investments temporarily lose value has low risk tolerance. If that describes you, you might
be more comfortable with money market funds, bond funds, balanced funds and perhaps very conservative
equity funds. An investor who is willing to take on more risk might prefer a higher proportion of equity funds
or more aggressive funds that specialize in one industry or country.
The Personal Asset Allocation Program can help you identify your risk tolerance and choose an appropriate
portfolio of mutual funds we offer, but you will always have the final decision about which mutual funds suit
you best. See page 15 for more information on this program.
A description of the specific risks associated with investing in the fund begins on page 7 of this simplified
prospectus.
Specific information about the CI Global High Dividend Advantage Fund
Organization and management of the CI Global High Dividend Advantage Fund
Manager
CI Investments Inc.
2 Queen Street East
Twentieth Floor
Toronto, Ontario
M5C 3G7
As manager, we are responsible for the day-to-day operations
of the fund and provide all general management and
administrative services.
Trustee
CI Investments Inc.
Toronto, Ontario
As trustee, we control and have authority over the fund’s
investments and cash on behalf of unitholders. We may also
appoint governors to oversee the operations of the fund.
Custodian
RBC Dexia Investor Services Trust
Toronto, Ontario
The custodian holds the fund’s investments and cash on behalf
of the fund. The custodian is independent of CI.
Registrar
CI Investments Inc.
Toronto, Ontario
As registrar, we keep a record of all unitholders of the fund,
process orders and issue account statements and tax slips to
unitholders.
Auditors
PricewaterhouseCoopers LLP
Toronto, Ontario
The auditor verifies that the fund’s financial statements are
fairly stated. The auditor is independent of CI.
Portfolio advisor
CI Investments Inc.
Toronto, Ontario
As portfolio advisor, we manage the investment portfolio of
the fund.
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Fund details
Fund type
Date created
Type of securities
Registered plan eligibility
Global equity fund
January 20, 2006
Class A, Class F and Class I units
100% eligible for registered plans
What does the fund invest in?
Investment objective
This fund’s objectives are to:
(i)
provide investors with a stable stream of tax efficient monthly distributions, consisting
mostly of capital gains and returns of capital, of $0.05 per unit ($0.60 per annum); and
(ii)
endeavour to preserve and enhance the net asset value of the fund.
In order to achieve its objectives, the fund invests primarily in equity securities of Canadian issuers, also
known as its Canadian equity portfolio, as well as in dividend-paying common and preferred shares,
debentures, income trusts, equity-related securities and convertible securities issued by issuers anywhere in
the world. The fund also will enter into one or more derivatives to obtain exposure to one or more baskets of
securities, also called equity baskets, consisting primarily of dividend-paying common and preferred shares,
debentures, income trusts, equity-related securities and convertible securities issued by issuers anywhere in
the world, together with the earnings thereon.
Any change to the investment objective must be approved by a majority of votes cast at a meeting of
unitholders held for that reason.
Investment strategies
General
Equity securities represent part ownership of a company. A typical example is common shares. Common
shares are equity securities representing part ownership in a company. Common shares usually come with
rights such as the right to vote at shareholder meetings.
Equity-related securities are securities that behave like equity securities. They include warrants and
convertible securities. Convertible securities are debentures or preferred shares that the owner may exchange
for shares of the company.
Income trusts are issuers, the securities of which are listed and posted for trading on a stock exchange,
structured to own debt and/or equity of an underlying company or partnership, or a royalty in revenues
generated by the assets thereof, which carries on an active business, including royalty trusts, income funds,
real estate investment trusts, certain limited partnerships and other income vehicles including any entity that
has publicly announced its intention to convert into one of the foregoing. A determination by the portfolio
advisor of the fund that an issuer of securities is a royalty trust, income fund, real estate investment trust,
limited partnership or other income vehicle is conclusive for all purposes herein.
Fixed income securities are securities that generate interest or dividend income, such as debentures,
commercial paper, treasury bills and other money market instruments and preferred shares.
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Debentures are fixed income securities issued by a government or corporation usually backed only by the
general credit of the issuer.
Commercial paper are short-term fixed income securities that generally mature in less than one year. They
are generally issued by banks, corporations and other borrowers and are usually not backed by any assets.
Money market instruments are short-term fixed income securities that mature in less than a year. They
include government treasury bills, commercial paper and bankers’ acceptances.
Preferred shares are securities that usually entitle the owner to a fixed dividend ahead of a company’s
common shares and to a maximum stated dollar value per share if the company is dissolved.
When deciding whether to buy or sell an investment or enter into a forward agreement, the portfolio advisor
considers whether the investment or underlying equity basket is a good value relative to its current price and
how it is expected to perform. The portfolio advisor may use techniques such as fundamental analysis to
assess growth and value potential. This means evaluating the financial condition and management of a
company, its industry and the overall economy.
Forward agreements
A derivative is an investment that derives its value from another investment - called the underlying
investment. In this case, the forward agreements will be the derivatives and the equity baskets will be the
underlying investments. Derivatives usually take the form of a contract with another party (in this case, the
counterparties) to buy or sell an asset (in this case, to sell all or part of the Canadian equity portfolio) at a later
time.
To obtain exposure to the equity baskets, the fund will enter into one or more forward purchase and sale
agreements, or forward agreements, in which the counterparties to the forward agreements will agree to pay
to the fund as the purchase price for the Canadian equity portfolio, or portions thereof, amounts determined by
reference to the value of the equity baskets. The fund intends to enter into forward agreements in respect of
100% of the Canadian equity portfolio, and equity baskets may be 100% comprised of securities of nonCanadian issuers. The fund will partially settle the forward agreements from time to time in order to fund
monthly distributions as well as redemptions of its units and payment of expenses of the fund.
The fund will use derivatives only in compliance with the securities regulations applicable to mutual funds.
These requirements include that:
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the fund will enter into a derivative only if the counterparty, or an affiliate that has fully and
unconditionally guaranteed the obligations of the counterparty under the derivative, has an
approved credit rating for this purpose; and
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when the fund uses derivatives for purposes other than hedging (such as the forward agreements),
it will hold enough of the Canadian equity portfolio to fully cover its position in the derivative.
Equity baskets
Each equity basket is a notional basket of securities and will be constructed by Epoch Investment Partners,
Inc., or Epoch, for purposes of forward agreements based on Epoch’s evaluation of which combination of
securities is most likely to generate a consistently high level of dividends and interest income. Epoch also
may, from time to time, add, remove or replace securities within the equity baskets or change the weightings
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of individual securities within the equity baskets. Epoch will be retained by the counterparties to determine
the equity baskets.
Securities lending
In order to generate additional income, the fund may enter into securities lending transactions and repurchase
transactions.
A securities lending transaction is where the fund lends portfolio securities that it owns to a third party
borrower. The borrower promises to return to the fund at a later date an equal number of the same securities
and to pay a fee to the fund for borrowing the securities. While the securities are borrowed, the borrower
provides the fund with collateral consisting of a combination of cash and securities. In this way, the fund
retains exposure to changes in the value of the borrowed securities while earning additional fees.
A repurchase transaction is where the fund sells portfolio securities that it owns to a third party for cash and
simultaneously agrees to buy back the securities at a later date at a specified price using the cash received by
the fund from the third party. While the fund retains its exposure to changes in the value of the portfolio
securities, it also earns income for participating in the repurchase transaction.
The fund will not enter into a securities lending transaction or a repurchase transaction if, immediately
thereafter, the aggregate market value of all securities loaned by the fund and not yet returned to it or sold by
the fund in repurchase transactions and not yet repurchased would exceed 50% of the total assets of the fund
(exclusive of collateral held by the fund for securities lending transactions and cash held by the fund for
repurchase transactions).
Excess cash
In addition to holding cash, the fund also may invest excess cash in (i) any Canadian or U.S. dollar
denominated debt security considered investment grade, at the time of investment, by Standard & Poor’s or
another equivalent credit rating agency, and (ii) cash equivalents.
During the initial offering period which ends on February 28, 2006, the fund will utilize this investment
strategy exclusively by investing its assets in money market instruments.
What are the risks of investing in the fund?
Investing in the fund is subject to the risks described below, some of which relate directly to the fund’s
activities and others of which are derived from the fund’s use of the forward agreements to obtain exposure to
the equity baskets.
Investment Objectives
There is no assurance that the fund will be able to achieve its monthly distribution objective or its objective to
endeavour to preserve and enhance its net asset value. Further, as a consequence of entering into the forward
agreements, the fund may forego the benefits of any increase in the value of its Canadian equity portfolio.
Class risk
The fund issues different classes of units. Each class has its own fees and expenses, which the fund tracks
separately. However, if one class is unable to meet its financial obligations, the other classes are legally
responsible for making up the difference.
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Credit risk
When a company or government issues a fixed income security, it promises to pay interest and repay a
specified amount on a future date. Credit risk is the risk that the company or government will not live up to
that promise. Credit risk is lowest among issuers that have good credit ratings from recognized credit rating
agencies. The riskiest fixed income securities are those with a low credit rating or no credit rating at all.
These securities usually offer higher interest rates to compensate for the increased risk.
Currency risk
When the fund buys or obtains exposure to an investment priced in a foreign currency and the exchange rate
between the Canadian dollar and the foreign currency changes unfavourably, it could reduce the value of the
fund’s investment. Of course, changes in the exchange rate can also increase the value of an investment.
Equity risk
Equities such as common shares give you part ownership in a company. The value of an equity security
changes with the fortunes of the company that issued it. General market conditions and the health of the
economy as a whole can also affect equity prices. Equity-related securities, which give you indirect exposure
to the equities of a company, can also be affected by equity risk.
Foreign investment risk
Investments in foreign companies are influenced by economic and market conditions in the countries where
the companies operate. Equities and fixed income securities issued by foreign companies and governments
are often considered riskier than Canadian investments. One reason for this is that many countries have lower
standards for accounting, auditing and reporting. Some countries are less politically stable than Canada and
there is often less available information about individual investments. In some countries, there is a risk of
nationalization, expropriation or currency controls. It can be difficult to trade investments on foreign markets
and the laws of some countries do not fully protect investor rights. These risks and others can contribute to
larger and more frequent price changes among foreign investments. U.S. investments are not considered to
have foreign investment risk.
Forward agreements risk
The use of the forward agreements by the fund comes with a number of risks:
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the counterparties to the forward agreements might not be able to honour the terms of the forward
agreements;
the price of a forward agreement could be distorted if some or all of the securities that make up an
equity basket temporarily stop trading;
in some circumstances, investment dealers and futures brokers may hold some of the fund’s assets on
deposit as collateral in a forward agreement. This increases risk because another party is responsible
for the safekeeping of the assets;
the counterparties charge fees to the fund for entering into the forward agreements. These fees
reduce the returns of the fund. If the fees increase in the future, the returns of the fund will be further
reduced;
if a counterparty is no longer able to enter into or maintain a forward agreement with the fund, the
fund will need to find another counterparty. If the fund cannot find a replacement counterparty, it
may have to suspend new purchases or it may have to be terminated; and
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the fund will treat gains or losses on the disposition of securities in the Canadian equity portfolio as
capital gains and losses. If upon physical settlement of the forward agreements the character and
timing of the gains under the forward agreements were other than a capital gain on the sale of the
securities thereunder, after-tax returns to unitholders could be reduced and the fund could be subject
to non-refundable income tax from such transactions. In such circumstances, the fund may be unable
to provide tax efficient distributions unless an alternative strategy using other derivatives can be used.
Income trust risk
To the extent that claims, whether in contract, in tort or as a result of tax or statutory liability, against an
investment trust are not satisfied by the trust, investors in the investment trust, could be held liable for such
obligations. Investment trusts generally seek to make this risk remote in the case of contract by including
provisions in their agreements that the obligations of the investment trust will not be binding on investors
personally. However, investment trusts could still have exposure to damage claims such as personal injury
and environmental claims. Certain jurisdictions have enacted legislation to protect investors in investment
trusts from the possibility of such liability.
On September 8, 2005, the Minister of Finance (Canada) released a consultation paper soliciting views on a
number of tax-related issues arising in respect of income trusts and other flow-through entities and suggesting
certain potential policy responses. On November 23, 2005, the Minister of Finance (Canada) proposed a
reduction in personal income tax on dividends with a view to establishing a better balance between the
treatment of large corporations and that of income trusts. No measures were announced with respect to the
taxation of income trusts, and other flow-through entities, and their investors. No assurance may be given
that further review of the tax treatment of income trusts and other flow-through entities will not be undertaken
or that Canadian federal income tax law respecting income trusts and other flow-through entities will not be
changed in a manner that adversely affects the fund and its unitholders.
Interest rate risk
Fixed income securities are sensitive to changes in interest rates. In general, when interest rates are rising, the
value of these investments tends to fall. When rates are falling, fixed income securities tend to increase in
value. Fixed income securities with longer terms to maturity are usually more sensitive to changes in interest
rates.
Securities lending risk
There are risks associated with securities lending and repurchase transactions. Over time, the value of the
securities loaned under a securities lending transaction or sold under a repurchase transaction might exceed
the value of the cash or collateral held by the fund. If the third party defaults on its obligation to repay or
resell the securities to the fund, the cash or collateral may be insufficient to enable the fund to purchase
replacement securities and the fund may suffer a loss for the difference.
Who should invest in this fund?
This fund may be suitable for you if:
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want a mutual fund that makes regular tax efficient distributions for your portfolio,
are investing for the medium and/or long term, and
can tolerate medium to high risk.
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This is meant as a general guide only. For advice about your own circumstances, you should consult your
financial advisor.
Distribution policy
The fund will endeavour to provide holders of its units with a stable stream of tax efficient monthly
distributions, consisting mostly of capital gains and returns of capital, of $0.05 per unit ($0.60 per annum) on
or about the last business day of each month.
The fund’s distributions are intended to benefit investors in its units as returns of capital are generally not
subject to tax (returns of capital will reduce the adjusted cost base of units) and distributions that are
designated as capital gains will generally be taxed at a lower rate than distributions of interest, foreign
dividends and/or other investment income. Accordingly, units are intended to be tax efficient when compared
to mutual funds and other investment funds that depend solely on such other sources of income to pay
distributions to investors.
If, in any year after distributions are made, there would otherwise remain in the fund additional net income or
net realized capital gains, the fund intends to make, on or before December 31 of that year, a special
distribution of such portion of the remaining net income and net realized capital gains as is necessary to
ensure that the fund will not be liable for income tax under Part I of the Income Tax Act (Canada).
Distributions by the fund will be automatically reinvested without charge in additional units. You can ask to
receive your distributions in cash if you hold your units in a non-registered account. We may change the
distribution policy at our discretion. For more information about distributions, see “Income tax
considerations for investors” on page 22.
Purchases, switches and redemptions
You can buy units of the fund, switch units of the fund for units of another class of the fund or switch units of
the fund for units or shares of another mutual fund we manage, in each case through a qualified financial
advisor.
You can sell your units either through your financial advisor or by contacting us directly. Selling your units is
also known as redeeming.
Whether you are buying, switching or selling units, we base the transaction on the value of a unit. The price
of a unit is called the net asset value (NAV) per unit, or the unit value. We calculate a separate NAV for each
class of the fund’s units by taking the value of its assets allocated to the class of units of the fund, subtracting
any liabilities of the class of units, and dividing the balance by the number of units investors in that class hold
in the fund.
We calculate NAV at 4:00 p.m. Eastern time on each day that the Toronto Stock Exchange is open for a full
day of business. This is called a valuation day. The fund is valued in both Canadian and U.S. dollars and you
can choose to buy units in either Canadian or, after the initial offering period, U.S. dollars. You also may
request that we switch the currency in which your units are valued.
When you place your order through a financial advisor, the financial advisor sends it to us. If we receive your
properly completed order before 4:00 p.m. Eastern time on a valuation day, we will process it using that day’s
NAV. If we receive your order after that time, we will use the NAV on the next valuation day. The valuation
day used to process your order is called the trade date.
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The fund offers Class A, Class F and Class I units. Class A units are available to all investors. Class F and
Class I units are available to investors who participate in certain programs or are members of certain groups,
including:
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investors who participate in fee-based programs through their financial advisor. These investors pay
their financial advisor an annual fee for ongoing financial planning advice. We pay no commissions
or service fees to their financial advisor.
certain other groups of investors, provided we incur no distribution costs and it makes sense to charge
a lower fee.
We charge the fund a lower management fee in respect of Class F units and no management fee in respect of
Class I units because our distribution and servicing costs are reduced. You can only buy Class F units if your
financial advisor and we approve it first. Your financial advisor’s participation in the Class F program is
subject to our terms and conditions.
Class I units are only available to institutional clients and investors who have been approved by us and have
entered into a Class I Account Agreement with us. The criteria for approval may include the size of the
investment, the expected level of account activity and the investor’s total investment with us. No
management fees are charged to the fund with respect to the Class I units; each investor will negotiate a
separate fee which is payable directly to us. Service fees payable to the dealer will be negotiated and
disclosed in the Class I Account Agreement. This class of units is also available to directors and employees
of CI and its affiliates.
If we become aware that you no longer qualify to hold Class F or Class I units of the fund, we may change
your units to Class A units after we give you 30 days’ notice.
How to buy units
You can invest in the fund by completing a purchase application, which you can get from your financial
advisor.
The minimum initial investment for Class A and Class F units of the fund is $500. The minimum for each
subsequent investment is $50. The minimum initial investment for Class I units is determined when you enter
into a Class I Account Agreement with us.
Your financial advisor or we will send you a confirmation once we have processed your order. If you buy
through the pre-authorized chequing plan described on page 16, we will send you a confirmation only for the
first transaction. A confirmation shows details of your transaction, including the number and class of units
you bought, the purchase price and the trade date. We do not issue certificates of ownership for the fund.
We can refuse your order to buy units within one business day of receiving it. If we do so, we will return all
money received, without interest, to you or your financial advisor, once the payment clears. You have to pay
for your units when you buy them.
Purchase options
There is usually a charge for investing in Class A units. You have two options: the initial sales charge or the
deferred sales charge. If you do not make a choice, we will apply the standard deferred sales charge option.
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Initial sales charge
With the initial sales charge option, you usually pay a sales commission when you buy your Class A units.
The commission is a percentage of the amount you invest and is paid to your financial advisor. See “Dealer
compensation” on page 21 for details and “Fees and expenses” starting on page 17 for the sales charge
schedule. You negotiate the actual commission with your financial advisor.
Deferred sales charge
You pay no commission when you invest in Class A units under the deferred sales charge. The entire amount
of your investment goes toward buying Class A units and we pay the financial advisor’s commission directly.
See “Dealer compensation” on page 21 for details. However, if you sell your Class A units within a certain
number of years after buying them, you will pay a redemption fee. The redemption fee is based on the cost of
the Class A units and decreases each year that you hold your Class A units. See “Fees and expenses” starting
on page 17 for the redemption fee schedules.
Under the deferred sales charge, there are three options: the standard deferred sales charge, the low-load sales
charge and the modified low-load sales charge. Each option is further described below.
Standard deferred sales charge
The redemption fee starts at 5.5% in the first year and decreases each year over a seven year period. If you
hold your Class A units for more than seven years, you pay no redemption fee. If you choose the standard
deferred sales charge, under the free redemption right you can sell or change some of your Class A units each
year without paying a fee so that they are no longer subject to a redemption fee. See “Free redemption of
standard deferred sales charge Class A units” on page 13 for details.
Low-load sales charge
The redemption fee starts at 3% in the first year and decreases each year over a three year period. If you hold
your Class A units for more than three years, you pay no redemption fee. If you choose the low-load sales
charge, you may not sell your Class A units until the beginning of the fourth year without paying a
redemption fee.
Modified low-load sales charge
The redemption fee starts at 3.5% in the first year and decreases each year over a four year period. If you
hold your Class A units for more than four years, you pay no redemption fee. If you choose the modified
low-load sales charge, you may not sell your Class A units until the beginning of the fifth year without paying
a redemption fee.
How to sell your units
To sell your units, send your signed instructions in writing to your financial advisor or to us. Once we receive
your order, you cannot cancel it. We will send you a confirmation once we have processed your order. We
will send your payment within three business days of receiving your properly completed order. You will
receive payment in the same currency in which you bought the units.
Your signature on your instructions must be guaranteed by a bank, trust company, or financial advisor if the
sale proceeds are:
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•
•
more than $25,000, or
paid to someone other than the registered owner.
If the registered owner of the units is a corporation, partnership, agent, fiduciary or surviving joint owner, we
may require additional information. If you are unsure whether you need to provide a signature guarantee or
additional information, check with your financial advisor or us.
Selling deferred sales charge units
If you purchased units using a deferred sales charge option and you sell those units before the redemption fee
schedule has expired, you must pay the redemption fee which is deducted from your sale proceeds. We sell
deferred sales charge units in the following order:
•
•
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units that qualify for the free redemption right described below,
units that are no longer subject to the redemption fee, and
units that are subject to the redemption fee.
Units are sold on a first bought, first sold basis. We also sell units you received from reinvested distributions
in the same proportion as we sell units from the original investment.
If you sell your units within 30 business days of buying them, a short-term trading fee may also apply.
See “Fees and expenses” on page 17 for details about these fees.
Free redemption of standard deferred sales charge Class A units
Each year, you can sell some of your standard deferred sales charge Class A units that would otherwise be
subject to the redemption fee at no charge. This is called your free redemption right. We calculate the
available number of units as follows:
•
•
•
10% of the number of standard deferred sales charge Class A units you bought in the current
calendar year, multiplied by the number of months remaining in the calendar year (including
the month of purchase) divided by 12, plus
10% of the number of standard deferred sales charge Class A units you held on December 31
of the preceding year that are subject to the redemption fee, minus
the number of Class A units you would have received if you had reinvested any cash
distributions you received during the current calendar year.
We may modify or discontinue your free redemption right at any time in our sole discretion. If you do not
wish to sell the Class A units you would be entitled to sell under this free redemption right in any year, you
can ask us to change those Class A units from standard deferred sales charge units to initial sales charge units.
You will not be charged a fee for this change and your costs of owning your investment will not be affected,
but this will increase the compensation that we will pay your financial advisor. See “Dealer Compensation”
on page 21 for details. The free redemption right only applies if your Class A units remain invested for the
full standard deferred sales charge schedule. If you have exercised your free redemption right and then
redeem your Class A units before the standard deferred sales charge schedule has expired, your cost per unit
will be increased to compensate us for the Class A units redeemed under the free redemption right. In other
words, even if you redeemed Class A units under the free redemption right, your deferred sales charge on a
full redemption would be the same as if you had not redeemed any Class A units under the free redemption
right.
13
How we calculate the redemption fee
The redemption fee applies once you have sold:
•
•
all of your deferred sales charge Class A units under the free redemption right, and
all of your deferred sales charge units that are no longer subject to the redemption fee.
We calculate the redemption fee as follows:
number of units you are selling
X
cost per unit
X
the redemption fee rate
The cost per unit for calculating the redemption fee is based on the cost and number of units of your original
investment. If you previously sold some of these units under the free redemption right, you will have fewer
units, so the cost per unit will be higher. See “Free redemption of standard deferred sales charge Class A
units”. If your distributions were reinvested in the fund, you will have more units so the cost per unit will be
lower. The redemption fee rate depends on how long you have held your units. See “Fees and expenses” on
page 17 for the redemption fee schedules.
Minimum balance
If the value of your units in the fund is less than $500, we can sell your units and send you the proceeds. We
will give you 10 days’ notice first. The minimum does not apply to accounts with an active pre-authorized
chequing plan.
Suspending your right to sell units
Securities regulations allow us to temporarily suspend your right to sell your units and postpone payment of
your sale proceeds:
•
•
during any period when normal trading is suspended on any exchange on which securities or
derivatives that make up more than 50% of the fund’s value or its underlying market exposure are
traded, provided those securities or derivatives are not traded on any other exchange that is a
reasonable alternative for the fund, or
with the approval of securities regulators.
We will not accept orders to buy units during any period when we have suspended investors’ rights to sell
units.
How to switch your units
Switching to another class of units of the fund
You can change your units of one class to units of another class of the fund by contacting your financial
advisor. Changing units from one class to another class of the fund is not a disposition for tax purposes.
You can only change Class A units into Class F or Class I units if you are eligible to buy them. If you bought
your Class A units under a deferred sales charge option, then at the time of this type of change you will pay a
reclassification fee equal to the redemption fee you would pay if you redeemed your units. No other fees
apply to this type of switch.
14
Switching to another mutual fund
You can switch from the fund to another mutual fund we manage by contacting your financial advisor. Give
your financial advisor the class of units you hold, the dollar amount or number of units you want to switch
and the name of the other mutual fund to which you are switching. Your switch will be made into an
equivalent class of units or shares of the other mutual fund that are priced in the same currency as the units
you are switching.
If you switch units of the fund you bought under a deferred sales charge option to units or shares of another
mutual fund, the same deferred sales charge option will apply to your new units or shares. You pay no
redemption fee when you make this switch, but you may have to pay a redemption fee when you sell the new
units or shares of the other mutual fund. If the redemption fee applies, we will calculate it based on the cost
of the original units of the fund and the date you bought the original units.
You may have to pay your financial advisor a fee based on the value of the units you are switching. However,
the fee is negotiable. If you have held the units for 30 business days or less, you may also have to pay a shortterm trading fee. See “Fees and expenses” on page 17 for details about these fees.
A switch to another mutual fund is a disposition for tax purposes. If you hold your units outside a registered
plan, you may realize a taxable gain.
Optional services
You can take advantage of the following plans and services when you invest in the fund.
Registered plans
We offer the following registered plans. Not all of these plans may be available in all provinces or territories.
Ask your financial advisor for details and an application.
•
•
•
•
•
•
•
•
Registered Retirement Savings Plans (RRSPs)
Locked-in Retirement Accounts (LIRAs)
Locked-in Registered Retirement Savings Plans (LRSPs)
Registered Retirement Income Funds (RRIFs)
Locked-in Retirement Income Funds (LRIFs)
Life Income Funds (LIFs)
Registered Education Savings Plans (RESPs)
Prescribed Retirement Income Fund (PRIFs)
These plans are available only in Canadian dollars.
Personal Asset Allocation Program
We offer an automatic portfolio rebalancing service to all investors in mutual funds we manage. You can
advise us of your target mutual fund allocation and we will review your current mutual fund allocation
compared to your target mutual fund allocation on a monthly, quarterly, semi-annual or annual basis. We will
review your account to determine if you are scheduled for a target allocation review and, if so, if your
investment in any mutual fund varies by more than the percentage of variance you have selected for your
target mutual fund allocation, we will automatically switch your investments to return to your target mutual
fund allocation. If 100% of one or more mutual funds within your target asset allocation are redeemed or
switched from the target mutual fund mix, your target mutual fund allocation will be updated and
15
proportionately allocated to the remaining active mutual funds in your target mutual fund allocation. There is
no fee for this service.
Pre-authorized chequing plan
Our pre-authorized chequing plan allows you to make regular investments in the fund in the amounts you
choose. You can start the plan by completing an application, which is available from your financial advisor.
Here are the plan highlights:
•
•
•
•
•
•
•
•
your initial investment and each subsequent investment must be at least $50;
we automatically transfer the money from your bank account to the fund;
you can choose any day of the month to invest weekly, bi-weekly, monthly, bi-monthly, quarterly,
semi-annually or annually;
if the date you choose falls on a day that is not a business day, your units will be bought the next
business day;
you can choose either the initial sales charge option or a deferred sales charge option;
you can change or cancel the plan at any time by providing us 48 hours notice;
we will confirm your first automatic purchase and all other transactions will be reported on your
semi-annual and annual statements; and
to increase your regular investments under the plan, you need to contact your financial advisor.
CI is not required to send a simplified prospectus to investors who participate in the pre-authorized chequing
plan unless they request it at the time they enrol in the plan or subsequently request it from their financial
advisor. This simplified prospectus and any amendments thereto may be found at www.sedar.com or
www.ci.com. You will not have a withdrawal right for purchases under a pre-authorized chequing plan, other
than the initial purchase or sale, but you will have the rights described under “What are your legal rights?”
on page 24 for any misrepresentation about the fund contained in the simplified prospectus, annual
information form or financial statements. The foregoing does not apply to investors resident in Québec who
will continue to receive the then current simplified prospectus and amendments thereto in connection with
purchases under a pre-authorized chequing plan.
Systematic redemption plan
Our systematic redemption plan allows you to receive regular cash payments from the fund. You can start the
plan by completing an application, which is available from your financial advisor. Here are the plan
highlights:
•
•
•
•
•
•
•
the value of your fund units must be more than $5,000 to start the plan;
the minimum amount you can sell is $50 for each class of the fund;
we automatically sell the necessary number of units to make payments to your bank account or a
cheque is mailed to you;
you can choose any day of the month to receive payments weekly, bi-weekly, monthly, bimonthly, quarterly, semi-annually or annually;
if the date you choose is not a business day, your units will be sold the previous business day;
you can change or cancel the plan at any time by providing us 48 hours notice; and
we will confirm each automatic redemption.
A redemption fee may apply to any units you bought through a deferred sales charge option. If you sell your
units within 30 business days of buying them, you may also have to pay the short-term trading fee. See “Fees
and expenses” starting on page 17 for details.
16
If you withdraw more money than your units are earning, you will eventually use up your investment.
If you sell units held in a RRIF, LRIF or LIF, any withdrawals in excess of the minimum prescribed amount
for the year will be subject to withholding tax. You can only choose any day between the 1st and the 25th of
the month for these plan types.
Systematic transfer plan
Our systematic transfer plan allows you to make regular switches from the fund to another mutual fund we
manage. You can start the plan by completing an application, which is available from your financial advisor.
Here are the plan highlights:
•
•
•
•
•
•
•
the minimum switch is $50;
we automatically sell units you hold in the fund, class and sales charge option you specify and
invest the proceeds in another mutual fund we manage of your choice in the same class and sales
charge option;
you can only switch between mutual funds and classes priced in the same currency;
you can choose any day of the month to make switches weekly, bi-weekly, monthly, bi-monthly,
quarterly, semi-annually or annually;
if the date you choose is not a business day, your switch will be processed the previous business
day;
you can change or cancel the plan at any time by providing us 48 hours notice; and
we will confirm each automatic switch.
You may have to pay your financial advisor a switch fee based on the value of the units you are switching. If
you switch your units within 30 business days of buying them, you may have to pay the short-term trading
fee. See “Fees and expenses” below for details about these fees.
You pay no redemption fee when you switch units you bought under a deferred sales charge option, but you
may have to pay a redemption fee when you sell them. If the redemption fee applies, we will calculate it
based on the cost of the original units and date you bought them.
A switch to another mutual fund is a disposition for tax purposes. If you hold your units outside a registered
plan, you may realize a taxable gain when you switch to another mutual fund.
Fees and expenses
The table below shows the fees and expenses you may have to pay if you invest in the fund. You may have to
pay some of these fees and expenses directly. The fund may have to pay some of these fees and expenses,
which will reduce the value of your investment.
Fees and expenses payable by the fund
Management
fees
Each class of units of the fund (other than Class I units) pays us an annual management fee for providing
general management and administrative services. The fee is calculated and paid daily based upon the
NAV of the class. The maximum annual rates of the management fee for each class are: 2.10% for Class
A and 1.10% for Class F.
Management fee reductions
We may reduce or waive the management fees that we are entitled to charge. We can charge the
maximum rate of the annual management fee without giving notice to unitholders.
17
Management fee distributions
If you make a large investment in the fund, we may reduce our usual management fee that would apply to
your investment in the fund. In these circumstances, the fund pays you the amount of the reduction in the
form of a distribution. We will reinvest the distribution in the fund, unless you tell us you want to receive
it in cash or reinvest it in another mutual fund we manage.
Operating
expenses
We bear all of the operating expenses of the fund (other than the costs associated with the forward
agreements, certain taxes, borrowing costs and certain new governmental fees) (the “Variable Operating
Expenses”) in return for a fixed annual administration fee equal to 0.20% per annum of the NAV of each
class other than Class I. Not included in the Variable Operating Expenses are (a) costs associated with the
forward agreements, (b) taxes of any kind charged directly to the fund (principally income tax and G.S.T.
on its management and administration fees), (c) borrowing costs incurred by the fund from time to time,
and (d) any new fees that may be introduced by a securities regulator or other governmental authority in
the future that is calculated based on the assets or other criteria of the fund. The purchase price of all
securities and other property acquired by or on behalf of the fund (including brokerage fees, commissions
and service charges paid to purchase and sell such securities and other property) are considered capital
costs and therefore not included in Variable Operating Expenses. For greater certainty, we will bear all
taxes (such as G.S.T. and provincial sales taxes) charged to us for providing the goods, services and
facilities included in the Variable Operating Expenses. However, fees charged directly to investors are not
included in the Variable Operating Expenses.
Fees and expenses payable directly by you
Sales charge
Initial sales charge option
You may have to pay your financial advisor a sales charge when you buy Class A units
under the initial sales charge option. You can negotiate this charge with your financial
advisor. The table below shows the maximum sales charge you could pay:
Amount you buy
less than $25,000
$25,000-$49,999
$50,000-$99,999
$100,000-$249,999
$250,000 or more
Sales charge rate
up to 5.0%
up to 4.0%
up to 3.0%
up to 2.0%
up to 1.0%
Redemption fee:
You do not pay a sales charge to your financial advisor when you buy units under a
deferred sales charge option. You will pay a redemption fee if you sell them within a
certain number of years after buying them unless, in the case of the standard deferred
sales charge, you qualify for a free redemption. The tables below show the redemption
fee schedules for the three deferred sales charge options:
Standard deferred sales
charge option
You will pay a redemption fee if you sell Class A units purchased under the standard
deferred sales charge option within seven years after buying them, unless you qualify
for a free redemption. The table below shows the redemption fee schedule:
18
Units sold during the following
period after you bought them
during the first year
during the second year
during the third year
during the fourth year
during the fifth year
during the sixth year
during the seventh year
after seven years
Low-load sales charge option
You will pay a redemption fee if you sell Class A units purchased under the low-load
sales charge option within three years after buying them. The table below shows the
redemption fee schedule:
Units sold during the following
period after you bought them
during the first year
during the second year
during the third year
after three years
Modified low-load sales
charge option
Redemption fee rate
3.0%
2.5%
2.0%
none
You will pay a redemption fee if you sell Class A units purchased under the modified
low-load sales charge option within four years after buying them. The table below shows
the redemption fee schedule:
Units sold during the following
period after you bought them
during the first year
during the second year
during the third year
during the fourth year
after four years
Switch fee
Redemption fee rate
5.5%
5.0%
4.5%
4.0%
3.0%
2.0%
1.0%
none
Redemption fee rate
3.5%
3.0%
2.0%
1.0%
none
Switching to another mutual fund
You may have to pay your financial advisor a fee of up to 2% of the value of the units
you are switching. You can negotiate this fee with your financial advisor. You pay no
redemption fee when you switch units you bought under a deferred sales charge option,
but you may have to pay a redemption fee when you sell the new units or shares. We
calculate the redemption fee based on the cost of the original units and the date you
bought the original units.
Switching to another class
If you are changing Class A units to Class F or Class I units of the fund, you will have to
pay a reclassification fee if you bought your units under a deferred sales charge option.
The fee is equal to the redemption fee you would pay if you redeemed your units. See
the redemption fee schedules above.
19
Short-term trading fee
We may charge you a short-term trading fee of up to 2% of the total amount you redeem
if you sell your units within 30 business days after buying them. We may also refuse to
accept further purchase orders from you.
We will adopt policies on short-term trading mandated by regulation, if and when
implemented by securities regulators. These policies will be adopted without amendment
to the simplified prospectus or notice to you, unless otherwise required by securities
laws.
The short-term trading fee is in addition to any other fees you would otherwise be subject
to under this simplified prospectus.
Registered plan fees
Other fees
• Pre-authorized chequing
plan
• Systematic redemption plan
• Systematic transfer plan
• Optional dealer fee
• Class I Account Agreement
fee
• Personal Asset Allocation
Program
• Administrative fees
None
None
None
None
Investors in Class F and Class I units may be charged an annual fee by their dealer
that is negotiated between the investor and the dealer.
Investors in Class I units are charged a management fee directly by CI that is
negotiated between the investor and CI.
None
There is a $25 charge for all cheques returned because of insufficient funds.
Impact of sales charges
The table below shows the fees you would have to pay if you bought units of the fund under our different
purchase options. It assumes that:
•
•
•
•
you invest $1,000 in the fund for each period and sell all of your units immediately before the end
of that period;
the sales charge under the initial sales charge option is 5%;
the redemption fee under a deferred sales charge option applies only if you sell your units before the
deferred sales charge schedule has expired. You can sell some of your standard deferred sales charge
Class A units each year without paying the redemption fee. See “Fees and expenses” starting on
page 17 for the redemption fee schedules; and
you have not exercised your free redemption right under the standard deferred sales charge
option.
Initial sales charge option (Class
A units only)
Standard deferred sales charge
option (Class A units only)
Low-load sales charge option
(Class A units only)
Modified low-load sales charge
option (Class A units only)
No load option (Class F and
Class I units only)
When you buy your units
$50.00
1 year
-
3 years
-
5 years
-
10 years
-
-
$55.00
$45.00
$30.00
-
-
$30.00
$20.00
-
-
-
$35.00
$20.00
-
-
-
-
-
-
-
20
Dealer compensation
This section explains how we compensate your financial advisor when you invest in Class A units of the fund.
Sales commissions
Your financial advisor may receive a commission when you buy Class A units of the fund. The amount of the
commission depends on the purchase option you choose:
•
•
•
•
up to 5% of the amount you invest when you buy Class A units under the initial sales charge option.
The commission is paid by you and is deducted from your investment.
5% of the amount you invest when you buy Class A units under the standard deferred sales charge
option. The commission is not deducted from your investment - we pay your financial advisor
directly.
2% of the amount you invest when you buy Class A units under the low-load sales charge option.
The commission is not deducted from your investment - we pay your financial advisor directly.
3% of the amount you invest when you buy Class A units under the modified low-load sales charge
option. The commission is not deducted from your investment - we pay your financial advisor
directly.
Switch fees
You may have to pay your financial advisor a fee of up to 2% of the value of the units you are switching to
another mutual fund, which is deducted from the amount you switch.
Service fees
We pay financial advisors a service fee on Class A units for ongoing services they provide to investors,
including investment advice, account statements and newsletters. We do not pay service fees on Class F
units. Service fees may be negotiated for Class I units. The rate of the service fee depends on the Class of
units and purchase option you choose:
Purchase option
Annual service fee rate
Initial sales charge
up to 1.00%
Standard deferred sales charge
up to 0.50%
The low-load sales charge service fee paid to financial advisors on Class A units equals the standard deferred
sales charge rate for the first three years from the date of the investment and is changed to the initial sales
charge service fee rate thereafter. The modified low-load sales charge service fee rate paid to financial
advisors on Class A units is up to 0.40% annually for the first four years from the date of the investment and
is changed to the initial sales charge service fee rate thereafter. Service fee rates also may change if you
switch your Class A units to a different mutual fund.
The service fees are calculated monthly and payable monthly or quarterly based on the client assets invested
in Class A units of the fund held by all of a financial advisor’s clients throughout the month. We can change
or cancel service fees at any time.
21
You can instruct your financial advisor to change your standard deferred sales charge Class A units to initial
sales charge Class A units at any time after those units are no longer subject to the redemption fee. You may
also ask us to change the Class A units subject to your free redemption right from deferred sales charge units
to initial sales charge units. If you do this, we will pay your financial advisor the initial sales charge service
fee from the date that we receive your change request.
Co-operative marketing programs
We may reimburse your financial advisor for expenses incurred in selling the fund, including:
•
•
•
advertising and other marketing expenses
educational and sales seminars attended by financial advisors or their clients, and
other marketing programs.
We can change or cancel co-operative marketing programs at any time.
Dealer compensation from management fees
We paid financial advisors sales and service commissions equal to approximately 49% of the total
management fees we received from other mutual funds we managed during the financial year ended
December 31, 2004.
Disclosure of equity interests
We are wholly-owned by CI Financial Inc., a public company whose shares are listed on the Toronto Stock
Exchange. CI Financial Inc. also indirectly owns Assante Capital Management Ltd., Assante Financial
Management Ltd., CI Fund Services Inc. and IQON Financial Inc.
Income tax considerations for investors
This section is a summary of how taxes can affect your investment in the fund. It assumes that you:
•
•
•
•
are an individual, other than a trust,
are a Canadian resident,
deal with the fund at arm’s length, and
hold your units as capital property.
Everyone’s tax situation is different. You should consult your tax advisor about your situation.
The fund
In general, a unit trust pays no income tax as long as it distributes its net income and net capital gains to its
unitholders. The fund generally intends to distribute enough of its net income and net realized capital gains
each year so it will not have to pay income tax under Part I of the Income Tax Act (Canada) (the “Income Tax
Act”).
How your investment can generate income
Your investment in the fund can generate income for tax purposes in two ways:
22
•
•
Distributions. When the fund earns net income from its investments or realizes a net capital gain
by selling securities, it may pass these amounts on to you as a distribution.
Capital gains (or losses). You can realize a capital gain (or loss) when you sell or switch your units
for units or shares of another mutual fund for more (or less) than you paid for your original units.
You will not realize a capital gain (or loss) when you change units of one class to units of another
class of the fund.
Units held in a registered plan
Units of the fund are qualified investments provided the fund is a “mutual fund trust” within the meaning of
that term in the Income Tax Act. The fund is expected to qualify as a mutual fund trust at all material times.
If you hold units of the fund in an RRSP, RRIF, RESP or other registered plan, you generally pay no tax on
distributions paid from the fund on those units or on any capital gains that your registered plan realizes from
selling or switching units. However, withdrawals from registered plans, other than RESPs, are taxable at your
personal tax rate. Withdrawals of contributions from RESPs are not taxable, but withdrawals of income or
capital gains those contributions earn are taxable.
Units held in a non-registered account
If you hold units of the fund in a non-registered account, you must include the following in calculating your
income each year:
•
•
•
Any net income and the taxable portion of any net capital gains distributed to you by the fund,
whether you receive the distributions in cash or you reinvest them in units of the fund.
The taxable portion of any capital gains you realize from selling or switching your units (other than a
change between classes of the fund) when the value of the units is greater than their adjusted cost
base plus reasonable costs of disposition (including any redemption fees). If the value of units sold is
less than their adjusted cost base plus reasonable costs of disposition (including any redemption fees),
you will have a capital loss. You may use capital losses you realize to offset capital gains.
Generally, the amount of any management fee distributions paid to you.
We will issue a tax slip to you each year that shows you how much of each type of income the fund
distributed to you and any return of capital. You can claim any tax credits that apply to that income. For
example, if distributions by the fund include Canadian dividend income or foreign income, you may qualify
for tax credits to the extent permitted by the Income Tax Act.
You should consult your tax advisor about the tax treatment in your particular circumstances of any optional
dealer fees you pay when investing in Class F units.
Distributions
To the extent distributions to you by the fund in any year exceed your share of the fund’s net income and net
capital gains, the excess (except if they are proceeds of disposition) is called a return of capital. A return of
capital will not be taxable to you, but will reduce the adjusted cost base of your units of the fund.
Distributions may include foreign exchange gains because the fund is required to report income and net
realized capital gains in Canadian dollars for tax purposes.
23
The unit price may include income and capital gains that the fund has earned, but not yet realized (in the case
of capital gains) and/or paid out as a distribution. If you buy units of the fund just before it makes a
distribution, you will be taxed on that distribution. You may have to pay tax on income or capital gains the
fund earned before you owned it.
Calculating your capital gain or loss
Your capital gain or loss for tax purposes is the difference between the amount you receive when you sell
your units or switch your units to another mutual fund (after deducting any redemption fees or other charges)
and the adjusted cost base of those units. Changing one class of units to another class of units of the fund will
not result in a disposition for tax purposes, so no capital gain or loss will arise.
In general, the adjusted cost base of each of your units of a particular class of the fund at any time equals:
•
•
•
•
•
•
your initial investment for all your units of that class of the fund (including any sales charges
paid), plus
your additional investments for all your units of that class of the fund (including any sales charges
paid), plus
reinvested distributions (including management fee distributions) in additional units of that class
of the fund, minus
any return of capital distributions by the fund in respect of units of that class of the fund, minus
the adjusted cost base of any units of that class of the fund previously redeemed, all divided by
the number of units of that class of the fund that you hold at that time.
You should keep detailed records of the purchase cost of your investments and distributions you receive on
those units so you can calculate their adjusted cost base. Other factors may affect the calculation of the
adjusted cost base and you may want to consult a tax advisor.
In certain situations where you dispose of units of the fund and would otherwise realize a capital loss, the loss
will be denied. This may occur if you, your spouse or another person affiliated with you (including a
corporation controlled by you) has acquired units of the fund (which are considered to be “substituted
property”), within 30 days before or after you dispose of your units. In these circumstances, your capital loss
may be deemed to be a “superficial loss” and denied. The amount of the denied capital loss will be added to
the adjusted cost base to the owner of the units which are substituted property.
What are your legal rights?
Securities legislation in some provinces gives you the right to withdraw from an agreement to buy mutual
funds within two business days of receiving the simplified prospectus, or to cancel your purchase within 48
hours of receiving confirmation of your order.
Securities legislation in some provinces and territories also allows you to cancel an agreement to buy mutual
fund units and get your money back, or to make a claim for damages, if the simplified prospectus, annual
information form or financial statements misrepresent any facts about the fund. These rights must usually be
exercised within certain time limits.
For more information, refer to the securities legislation of your province or territory or consult your lawyer.
24
Additional Information
The fund has received permission from the Canadian securities regulators to invest in securities of Sun Life
Financial Inc. and CI Financial Inc. (each a “Related Company”). In connection with such investments, we
have established an independent review committee (the “IRC”) comprised of William Harding, Stuart P.
Hensman, Stephen T. Moore and Sharon M. Ranson. Each member of the IRC is independent of us in that
none has a direct or indirect material relationship with CI Investments Inc., the fund or any of their respective
associates or affiliates. The purpose of the IRC is to review the decisions made on behalf of the fund to
purchase, sell or continue to hold securities of a Related Company and to form an opinion whether such
decisions were, and continue to be, in the best interest of the fund and: (a) represent the business judgment of
the fund’s portfolio advisor, uninfluenced by considerations other than the best interests of the fund, (b) have
been made free from any influence by a Related Company and without taking into account any consideration
relevant to a Related Company, and (c) do not otherwise exceed the limitations of applicable law. The IRC
will advise the Canadian securities regulators if the IRC determines that any investment does not meet the
criteria described above, or if any other condition of the permission to make such investments has not been
satisfied, together with any action that the IRC or the fund’s portfolio advisor has taken or proposes to take
following such a determination. In carrying out their responsibilities, the members of the IRC will exercise
their powers and discharge their duties honestly, in good faith and in the best interests of the fund and, in so
doing, will exercise the degree of care, diligence and skill that a reasonably prudent person would exercise in
the circumstances. All members of the IRC currently are members of the Board of Governors maintained by
us and, as such, are paid a fixed annual fee which is allocated to all mutual funds under our management
(generally pro rata based upon their relative net asset values). There is no intention to pay the members of the
IRC any compensation in addition to their usual compensation as members of the Board of Governors.
25
CI Investments Inc.
2 Queen Street East
Twentieth Floor
Toronto, Ontario
M5C 3G7
You can find additional information about the fund in the annual information
form, management reports of fund performance and financial statements.
These documents are incorporated by reference into this simplified prospectus. That means they legally form part of this document just as if they
were printed in it.
You can get a copy of these documents at your request and at no cost, by
calling 1-800-268-9374 or by e-mailing [email protected], or by asking your
financial advisor.
These documents and other information about the fund, such as information
circulars and material contracts, are also available at the CI Investments
website at www.ci.com or at www.sedar.com.
CIPROSGHDA-03/06E
CI Global High Dividend Advantage Fund
Head Office
2 Queen Street East, Twentieth Floor
Toronto, Ontario M5C 3G7
Tel: 416-364-1145
Toll Free: 1-800-268-9374
English Client Services Team: 1-800-563-5181
French Client Services Team: 1-800-668-3528
Sales Offices
Calgary
Tel: 403-205-4396 Toll Free: 1-800-776-9027
Halifax
Tel: 902-422-2444 Toll Free: 1-888-246-8887
Montreal Tel: 514-875-0090 Toll Free: 1-800-268-1602
Vancouver Tel: 604-681-3346 Toll Free: 1-800-665-6994
CI Teleservice: 1-800-275-3672 Automated account information
E-mail: [email protected] • www.ci.com