DISTINGUISH AND GROW YOUR PRACTICE WITH TAX-EFFICIENT INVESTING. Bill Johnstone, Vice President, Sales & Marketing

AGENDA Investors are risk-averse Corporate Class structure Why Corporate Class? Investment options Tax efficiency with T-Class T-Class case study T-Class opportunities

INVESTORS ARE RISK-AVERSE The continued concern about market volatility is causing flows out of equities and into bonds, which has persisted since the credit crisis began in Source: Stragegas

INVESTORS ARE STARVING FOR YIELD AND LOOKING FOR ALTERNATIVE SOURCES OF CASH FLOW Where are we today? 5-year GIC 1.63% 10-year U.S. Treasury Bill 2.79% 10-year Government of Canada Bond 2.74% Investment-grade corporate bonds 2.7% Bank of Canada, U.S. Department of the Treasury, Bloomberg, Barron’s economic data, August 2013

TWO TYPES OF FUNDS

WHY CORPORATE CLASS? Tax-deferral advantages of an RSP and TFSA (on switching). Ability to lock in investment gains without triggering a taxable event and defer tax on investment income and capital gains. Increased compound growth over the long term. Control when you pay tax on your investment. Ability to draw tax-efficient cash flow from your investments with T-Class.

CI CORPORATE CLASS CI has designed and manages a tax-effective corporate class fund structure with: Diversification of asset classes to help offset capital gains and losses. A larger weighting of equities to fixed income so that interest income is better offset by expenses. The ability to allocate distributions among all classes of funds.

INVESTMENT OPTIONS Investment choice with leading portfolio managers

SUSTAINABLE YIELD – THE TAX EFFECTIVE WAY Not only can clients access cash flow through our numerous mandates, but they can do so tax-free! T-Class can be customized to any monthly amount or percentage between 0.25% and 8% per year.

TAX EFFICIENCY 1 Assumes a marginal tax rate in Ontario of 46.41% as of The difference in the after-tax value of $10,000 in income from interest, dividends, capital gains and return of capital 1

Investment options

T-CLASS PAYMENT LONGEVITY $250,000 invested in T-Class 8% (T8), where the client requires $1,000 per month or $12,000 for the year. Payments are Made the last Friday of each month

SUSTAINABLE YIELD – THE TAX EFFECTIVE WAY T-Class pays out regular monthly distributions of tax-free return of capital (ROC) to clients. T-Class is offered in two versions: – T5, provides 5% ROC per year As of 2011 it can be customized to any monthly dollars or percentages between 0.25% and 5% per year. – T8, provides 8% ROC per year As of 2011 it can be customized to any monthly dollars or percentages between 0.25% and 8% per year.

T-CLASS CASE STUDY Clients requiring additional retirement cash flow – Require supplementary cash flow over and above their registered investments while minimizing the impact on income-tested benefits.

SUPPLEMENT RETIREMENT CASH FLOW Great for clients who need additional cash flow over and above their pension, RRSP or TFSA. T-Class’ ROC does not affect income-tested benefits like: – Old Age Security – Age Amount Tax Credit – GST/HST Tax Credit

SUPPLEMENT RETIREMENT CASH FLOW Assume client is receiving $70,000/year from their pension and RSP accounts. Let’s assume the client has $250,000 in their non-registered account. They need an additional $12,500 from their non-registered account. How does $12,500 from T-Class vs. Corporate Class affect cash flow and income-tested benefits?

SUPPLEMENT RETIREMENT CASH FLOW Each year client withdraws 5% in ROC or $12,500 Assumes a constant 5% annual rate of return.

SUPPLEMENT RETIREMENT CASH FLOW T-Class Corporate Class T-Class provided $17,287 more cash flow and $7,455 more in OAS and Age Tax Credit

T-CLASS OPPORTUNITIES There are 11,000 open accounts with SWPs / AWDs – 3,000 of those accounts are Corporate Class funds. – The average AWD is $1,000/month. That’s $12,000/ year – In the previous example at $12,500/year, we added over $20,000 in additional cash flow over 20 years through T-class.

Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. ®CI Investments, the CI Investments design, Cambridge, Synergy Mutual Funds, Harbour Advisors, Harbour Funds are registered trademarks of CI Investments Inc. ™Portfolio Select Series, Portfolio Series, Signature Global Asset Management, Signature Funds are trademarks of CI Investments Inc. Thank You FOR ADVISOR USE ONLY