1. Art and Diseño

Portfolio Review – xxx Quarter 20xx
Evolution 100i Model Portfolio
Portfolio Review – Fourth Quarter 2014
Q4
Evolution 100i Model Portfolio
Standard geographic asset allocation and blend of investment styles
Portfolio Review – Fourth Quarter 2014 as at December 31, 2014
Market Overview
Portfolio Target Allocations
Overall, the global economic expansion moved cautiously
forward in 2014, with stock market gains in North America
generally outperforming those of other developed and emerging
markets. The final quarter of the year was marked by significant
stock market volatility as investors took note of surprisingly weak
economic data from Germany, which is regarded as the stronger
of the Eurozone nations, and then responded to declining oil
prices by selling off stocks of energy-producing companies.
Income
Canadian Fixed Income Corporate Class
Enhanced Income Corporate Class
Global Fixed Income Corporate Class
Oil-producing nations and regions that were significantly
impacted were Canada, Russia, South America and many Middle
East countries. Concerns about oversupply in the energy market
caused a sharp drop in the price of oil and other commodities.
The price per barrel dropped to US$53 at the end of the year,
the lowest since 2009.
Canada’s commodity-heavy S&P/TSX Composite Index was
particularly volatile in the fourth quarter. The Canadian index
finished the three-month period with a loss of 1.5%, but
registered a respectable gain of 10.6% for the year. The falling
price of oil also caused the Canadian dollar to lose value relative
to the U.S. dollar. The loonie finished the year at 86.2 cents
U.S. Meanwhile, the FTSE TMX Canada Universe Bond Index,
a measure of Canadian government and investment-grade
corporate bonds, gained 2.7% in the fourth quarter.
100%
40%
40%
20%
Bond Information
Portfolio yield (approx.)
Duration in years
Average credit quality
Credit quality under B
3.5% ▲
4.9 ▲
A- ■
3.6% ▲
Top Ten Holdings
U.S. Treasury Note 1.625% 31Aug19
Gov't of France 3.25% 25May45
U.S. Treasury Note 3.125% 15May31
Province of Quebec 4.5% 01Dec19
Gov't of Japan 1.5% 20Jun34
Province of British Columbia 3.7% 18Dec20
U.S. Treasury Note 2.375% 15Aug24
Province of Ontario 6.25% 16Jun15
Inter Pipeline Ltd.
Gov't of Canada 2.75% 01Dec48
1.7%
1.3%
1.2%
1.2%
1.1%
1.1%
1.0%
1.0%
0.9%
0.9%
The MSCI World Index, which measures large and mid-cap
equities across 23 developed markets, gained 1.1% for the
quarter in U.S. dollar terms and 5.5% for the year. These
gains were magnified to 4.7% and 15.1%, respectively, for
Canadian investors. In the U.S., the benchmark S&P 500 Index
benefited from strong U.S. economic trends, growing consumer
and business confidence and healthy corporate profits, adding
13.7% for the year and 4.9% for the fourth quarter. In Canadian
dollars, the index gained 24% in 2014 and 8.6% for the quarter.
Evolution 2
Evolution 100i Model Portfolio
Standard geographic asset allocation and blend of investment styles
Portfolio Review – Fourth Quarter 2014 as at December 31, 2014
Overview
Diversified portfolios capture gains from asset classes and security types that are performing well, while limiting exposure to those that
are underperforming. Evolution’s portfolios are diversified not only across asset classes such as equities, bonds and real estate, but also by
country, market capitalization, industry sector and investment style. CI Investment Consulting combines its portfolio construction expertise
with ongoing comprehensive research and recommendations from State Street Global Advisors, one of the world’s largest investment
management companies, to create portfolios designed to capture evolving opportunities in the various asset classes. Each Evolution
portfolio consists of a number of United and CI mutual funds. The information in the Portfolio Performance and Activity sections below is
an aggregate of the underlying funds that make up the portfolio.
Portfolio Performance
Based on net returns and representative of Class E shares of the underlying United Funds. Returns are rounded to one decimal place.
1 Month
3 Months
6 Months
1 Year
3 Years
5 Years
Since Inception
0.0%
1.3%
1.8%
6.7%
5.2%
5.3%
5.5%
(September 2008)
Activity
This report is designed to provide you with an up-to-date look at the Evolution 100i Model Portfolio, including the allocations by type of
underlying investment, currency exposure and bond term. The arrows indicate whether the allocation for each category has increased or
decreased since the previous quarter-end.
Currency Exposure
Underlying Investments
■ Canadian dollar
▲
U.S. dollar
16% —
3% — ▼ Euro
9% — ▼ Other
36% — ■
21% — ▼
19% — ▲
72% —
Government bonds
Investment-grade corporate bonds
High-yield bonds
14% — ▼ Equities
9% — ▲ Cash
2% — ▼ REITS, trusts
Bond Term
14.5% — ▲
<1 Year
1-3 Years
3-5 Years
5-7 Years
19 % —
— ▼ 7-10 Years
17.9%
14 % —
— ▼ 10-20 Years
6.1%
9
%
— ▲ >20 Years
11.1% —
2% —
10.2% — ▼
36 % —
—▼
22.8%
21 % —
—▼
17.4%
3 Evolution
▲
▼
■
72 % —
16 % —
3% —
9% —
▲
▼
Evolution 3
Evolution 100i Model Portfolio
Standard geographic asset allocation and blend of investment styles
Portfolio Review – Fourth Quarter 2014 as at December 31, 2014
Portfolio Commentary
The portfolio gained 1.3% during the quarter, underperforming
its benchmark (FTSE TMX Canada Universe Bond Index), which
rose 2.7%. Our underweight exposure to government bonds
detracted from relative performance, while exposure to U.S
dollars, dividend-paying equities and global bonds added value.
During the quarter, worries over stalling global economic growth
and a downturn in commodity markets caused investors to avoid
riskier assets. Lower demand for oil from weaker economies,
together with an increase in supply, drove crude prices sharply
lower. Weaker commodity prices pushed down the Canadian
stock market and the dollar. In the United States, continued
economic expansion boosted equity markets and the value of the
U.S. dollar. Overseas equities, particularly in Europe, declined,
as Germany experienced slower economic growth and declining
inflation. In fixed-income markets, global economic weakness
combined with low inflation helped government bonds continue
their rally.
Having a diversified and flexible framework allows us to take
advantage of changes in valuations in the market and continue
providing steady income returns. We continue to adjust our bond
weightings to manage downside risk and volatility. Our portfolio
is invested diversely in corporate bonds, global bonds, currencies
and high-quality, dividend-paying equities.
Alfred Lam, CFA, Vice-President and Portfolio Manager
Yoonjai Shin, CFA, Director
Marchello Holditch, CFA, Senior Analyst
Lewis Harkes, CFA, Senior Analyst
Andrew Ashworth, Analyst
Global Fixed Income Corporate Class made the biggest
contribution to performance, benefiting from its holdings in
foreign-currency government bonds. Our U.S.-dollar exposure
also added value.
We added modestly to high-yield bonds over the three-month
period, while reducing our exposure to the U.S. dollar. We
continued to maintain a large cash position, which helped to
protect the portfolio during the period’s heightened market
volatility.
The portfolio’s interest rate risk is reduced through exposure to
bonds with shorter maturities and cash. We expect to maintain
our underweight position in Canadian government bonds as
long as they continue to be priced at a premium, and will
favour income securities that offer more attractive returns,
including corporate bonds and certain high-quality, dividendpaying equities.
Evolution 4
Evolution Private Managed Accounts
Portfolio Management teams
Altrinsic Global Advisors, LLC follows a fundamental value approach in which the team seeks out highquality undervalued companies worldwide. Founded by John Hock and associates, Altrinsic is based in
Greenwich, Connecticut.
Cambridge Global Asset Management is led by Co-Chief Investment Officers Alan Radlo and Brandon
Snow and Chief Market Strategist Robert Swanson. They invest in companies building long-term economic
value. Cambridge Global Asset Management is a division of CI Investments and has offices in Boston
and Toronto.
CI Investment Consulting is the portfolio management team responsible for over $25 billion of assets in
CI’s managed solutions and oversight of all CI funds. Led by Portfolio Manager Alfred Lam, the team’s
mandate is centred on asset allocation, manager oversight and selection, and risk management.
Cohen & Steers Capital Management, Inc., based in New York, specializes in the management of real
estate securities portfolios. Founded in 1986 by Martin Cohen and Robert H. Steers, the company was the
first in the U.S. to focus on real estate securities.
Epoch Investment Partners, Inc. is a New York-based investment management firm founded by Wall
Street veteran William Priest and associates. Epoch uses a unique value-based approach that focuses on
companies with superior shareholder yield.
Lawrence Park Capital Partners Ltd. is a Toronto-based independent investment management firm
dedicated to creating alternative fixed income and credit products. The Lawrence Park team, led by
Andrew Torres, offers a unique approach to fixed-income investing aimed at enhancing yield and
reducing volatility.
QV Investors Inc. is a Calgary-based, employee-owned portfolio management firm that serves individual and
institutional investors. QV follows a value-based approach in which it seeks companies with better returns
and lower valuations than those of the market. The firm is led by Chief Investment Officer Joe Jugovic.
Signature Global Asset Management is among the largest portfolio management teams in Canada, managing
a full range of global and Canadian income, equity and balanced mandates. Chief Investment Officer Eric
Bushell was named Morningstar’s Fund Manager of the Decade in 2010.
Picton Mahoney Asset Management is a portfolio management firm led by David Picton and Michael
Mahoney. The use of quantitative analysis is the foundation of their approach. Picton Mahoney
maintains a disciplined focus on fundamental change, coupled with strong risk controls and portfolio
construction techniques.
Tetrem Capital Management is an employee-owned investment management firm founded by Chief
Investment Officer Daniel Bubis. It is based in Winnipeg and has an office in Boston. Tetrem uses a
disciplined investment approach to invest in undervalued Canadian and U.S. companies.
Founded in 1928, Wellington Management Company LLP provides investment management services to
many of the world’s leading public and private institutions and is based in Boston. Mammen Chally, VicePresident and Equity Portfolio Manager, is Portfolio Manager of United US Equity Growth Pool and United
US Equity Corporate Class.
For more information on Evolution Private Managed Accounts,
please contact your advisor or visit www.assante.com
Evolution Private Managed Accounts is a program that provides strategic asset allocation across a series of portfolios comprised of United and
CI mutual funds and is managed by CI Investments Inc. (“CII”). Evolution Private Managed Accounts is not a mutual fund. CII provides portfolio
management and investment advisory services as a registered advisor under applicable securities legislation.
Evolution Private Managed Accounts is available through Assante Financial Management Ltd. and Assante Capital Management Ltd., wholly-owned
subsidiaries of CI Financial Corp. (“CI”). The principal business of CI is the management, marketing, distribution and administration of mutual funds,
segregated funds and other fee-earning investment products for Canadian investors through its wholly-owned subsidiary CI Investments Inc. If you
invest in CI products, CI will, through its ownership of subsidiaries, earn ongoing asset management fees in accordance with applicable prospectus
or other offering documents.
All commentaries are published by CI Investments Inc., the manager of all the funds described herein. They are provided as a general source
of information and should not be considered personal investment advice or an offer or solicitation to buy or sell securities. Every effort
has been made to ensure that the material contained in the commentaries is accurate at the time of publication. However, CI Investments
Inc. cannot guarantee their accuracy or completeness and accepts no responsibility for any loss arising from any use of or reliance on the
information contained herein.
Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments and the use of
an asset allocation service. Please read the prospectus of the mutual funds in which investment may be made under the asset allocation
service before investing. The indicated rates of return are the historical annual compounded total returns assuming the investment strategy
recommended by the asset allocation service is used and after deduction of the fees and charges in respect of the service. The returns are
based on the historical annual compounded total returns of the participating funds including changes in share unit value and reinvestment
of all dividends or distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by
any securityholder in respect of a participating fund that would have reduced returns. Mutual funds are not guaranteed, their values change
frequently and past performance may not be repeated. ™Evolution, United Financial, the United Financial design, Signature Global Asset
Management and Signature Funds are trademarks of CI Investments Inc.® Cambridge, CI Investments, the CI Investments design and Synergy
Mutual Funds are registered trademarks of CI Investments Inc. Cambridge Global Asset Management is a business name of CI Investments
inc. used in connection with its subsidiary, CI Global Investments Inc. Certain portfolio managers of Cambridge Global Asset Management
are registered with CI Investments Inc. Published January 2015.
1501-0037_E (01/15)