A Mutual Fund Corporation

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A Mutual Fund Corporation

• According to Section 51(1) of the Income Tax Act
• The investor may switch between the various
  classes of capital stock of a corporation
  without tax consequences.
• Income tax becomes payable only when capital
  stock holdings in the corporation are sold.

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CI Corporate Class

• Tax-deferral advantages of an RSP
• Ability to lock in investment gains without
  triggering a taxable event
• Tax-efficient source of stable monthly income
• Control when you pay tax on your investment

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Corporate Class vs. Trust
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Different Taxation
A T5 will be issued if there is distribution or
redemption.
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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 easily offset by expenses
  
• The ability to spread excess distributions among
  all classes of funds

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A Level Playing Field
Trust Corporate Class
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Across the Capital Structure
Tax is paid every year Inclusion rate is 100 for
interest income or 55 for dividends
55 Dividend-payingcommon shares
55 Preferred shares
RETURN
100 Income trusts
100 High-yield corporate bonds
100 Investment-gradecorporate bonds
VOLATILITY
100 Government bonds
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With Corporate Class
Tax is at time of redemption Inclusion rate is
always capital gain at 50
Distributions are minimized and can only be
tax-advantaged dividends or capital gains, not
interest income.
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Why is Tax-Efficiency Important?
The difference in the after-tax value of 10,000
in income from interest,dividends, capital gains
and return of capital1
1Assumes a top marginal tax rate of 46.4 for
Ontario, 2007.
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Why CI Corporate Class?
Provides the ability to
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Switch
Corporate Class Trust
Scenario assumes taxes are paid from the gains of
the investment before reinventing in another
investment. Taxes are calculated as follows
closing value less initial investment x 40
estimated MTR taxable capital gains x 50
estimated MTR tax paid at switch.
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Effective Way to Defer Taxes

• Transfer from one class to another
  without paying tax
• Benefit from tax deferral and increased growth
• Dont pay capital gains tax until you redeem

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Defer
Signature High Income Corporate Class Signature
High Income Fund
A 100,000 investment from January 2003 to
December 2006
Corporate Class Trust
2003 distribution 0.82 per unit, 2004
distribution 1.205 per unit, 2005 distribution
0.993 per unit, 2006 distribution 1.113 per
unit. Assumes top marginal rate of 46.41 for
Ontario, 2007. Actual distribution is taxed by
type of income. Assumes tax is paid outside
the account and lowers the value of the
investment.
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Tax-Deferred Growth
Signature High Income Trust vs. Corporate Class
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Convert
CI Canadian Bond Corporate Class CI Canadian Bond
Fund
Difference -1,810 annually or 84 more income
Assumes 96 return of capital, which does not
attract tax, and 4 capital gains, redeemed at
year end. Assumes top marginal rate of 46.41 for
Ontario, 2007.
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Investment Options
Wide investment choice with more than 55 funds
covering Canadian and global income, balanced and
equities, as well as Portfolio Select Series
managed portfolios.
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Investment Options
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Benefits of Corporate Class

• For investors who want to
• Adjust, or rebalanced their portfolios without
  tax consequences
• Grow their assets through deferral of capital
  gains tax
• Control when they pay tax

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Benefits for Income Investors

• For investors looking for
• Tax-efficiency to generate more after-tax income
• The ability to withdraw the income needed and
  stop, start or modify at will
• The potential to defer taxation until you are in
  a lowertax bracket
• A more balanced asset mix to achieve a better
  after-tax income

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Thank you
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Disclaimer
All charts and illustrations in this guide are
for illustrative purposes only. They are not
intended to predict or project investment
results. CI Investments, the CI Investments
design and Harbour Advisors are registered
trademarks of CI Investments Inc. Commissions,
trailing commissions, management fees and
expenses all may be associated with mutual fund
investments. Please read the prospectus before
investing. Unless otherwise indicated and except
for returns for periods less than one year, the
indicated rates of return are the historical
annual compounded total returns including changes
in security value. All performance data assume
reinvestment of all distributions or dividends
and do not take into account sales, redemption,
distribution or optional charges or income taxes
payable by any securityholder that would have
reduced returns. Mutual funds are not guaranteed,
their values change frequently and past
performance may not be repeated.