synergy 05 eng book - ci investments · please find enclosed the annual report for your fund,...

2005 Annual Report

Synergy Funds

as at March 31, 2006

A Message From The President ............................................................................................1

Equity Funds

Synergy American Fund .................................................................................................................2

Synergy Extreme Canadian Equity Fund........................................................................................6

Synergy Extreme Global Equity Fund...........................................................................................10

Balanced Funds

Synergy Tactical Asset Allocation Fund ......................................................................................15

Notes to the Financial Statements ......................................................................................21

Management and Audit Reports ......................................................................................... 25

About the CI Funds Board of Governors and

Letter from the CI Funds Board of Governors ...................................................................26

Legal Notice............................................................................................................................27

A look inside

– 1 –

2 Queen Street East, Twentieth FloorToronto, Ontario M5C 3G7www.ci.com

Telephone: 416-364-1145Toll Free: 1-800-268-9374Facsimile: 416-364-6299

Dear Investor,

Please find enclosed the Annual Report for your fund, including financial statements and a list of the fund’s holdings as of March 31, 2006.

We hope that you find this information to be useful.

We recognize that most investors appreciate receiving this type of information about their investments in the quickest and most convenient

way possible. That is why annual reports for our funds are available online through CI’s e-Service Centre. The e-Service Centre is a secure

and confidential way to view up-to-date information about your account, as well as important documents such as statements, trade

confirmations and tax receipts. You can register by visiting our website at www.ci.com.

As we begin a new fiscal year, CI remains dedicated to providing one of the industry’s strongest and most comprehensive selection of funds

and investment managers, and a high level of service. If you have questions about your account, please do not hesitate to contact your

financial advisor. Alternatively, you may contact CI Client Services at 1-800-563-5181 or [email protected].

Thank you for investing with CI.

Sincerely,

Peter W. AndersonPresident and Chief Executive OfficerCI Investments [email protected]

March 31, 2006

A Message from the President

Annual Report as at March 31, 2006

– 2 –

Synergy American FundStatement of Investment Portfolio as at March 31, 2006

No. of Shares/ Average MarketFace Amount Cost ($) Value ($)


INFORMATION TECHNOLOGY (17.0%) 35,500 Akamai Technologies Inc. 889,438 1,363,694 54,500 Amdocs Ltd. 2,191,742 2,295,340 43,250 Broadcom Corp. 1,551,603 2,180,180 53,700 Cisco Systems Inc. 1,247,832 1,359,121 88,100 Citrix Systems Inc. 3,057,456 3,899,778

118,600 Corning Inc. 2,897,801 3,727,547 56,200 Harris Corp.* 2,625,488 3,104,062

121,200 Hewlett-Packard Co. 4,072,296 4,657,183 17,800 Marvell Technology Group Ltd. 1,218,110 1,124,714 77,100 MEMC Electronic Materials Inc. 1,290,036 3,324,611 83,100 QUALCOMM Inc. 4,034,377 4,912,043 44,700 Rackable Systems Inc. 1,069,342 2,759,163 81,100 Red Hat Inc. 2,125,536 2,650,290 24,400 Silicon Laboratories Inc. 1,422,772 1,565,966 76,700 Varian Semiconductor Equipment

Associates Inc. 2,556,120 2,515,459 32,249,949 41,439,151

FINANCIALS (15.7%) 51,100 Allstate Corp. 3,251,347 3,110,046 90,100 Bank of America Corp. 5,059,829 4,792,285 23,100 Bear Stearns Cos. Inc. 2,766,610 3,742,081 69,000 CB Richard Ellis Group Inc., Class A* 2,577,115 6,503,504 49,900 Federated Investors Inc., Class B 2,245,848 2,275,864 63,500 JPMorgan Chase & Co. 2,708,848 3,088,227 51,200 Merrill Lynch & Co. Inc.* 4,001,733 4,709,778 28,000 PNC Financial Services Group Inc. 2,064,984 2,201,215 41,400 State Street Corp. 2,809,778 2,921,983 69,300 TD Ameritrade Holding Corp. 1,975,899 1,689,198 41,500 Wells Fargo & Co. 3,106,203 3,095,778

32,568,194 38,129,959 HEALTH CARE (13.1%)

151,600 Aetna Inc. 5,962,676 8,700,799 51,100 Alkermes Inc. 1,147,418 1,315,995 34,900 Becton Dickinson & Co. 2,383,376 2,510,093

181,200 BioMarin Pharmaceuticals Inc. 2,565,531 2,840,112 37,800 Covance Inc.* 2,042,448 2,593,728 14,600 Fisher Scientific International Inc. 1,181,302 1,160,395 43,100 Genzyme Corp. 3,171,940 3,383,768 43,000 Henry Schein Inc. 2,197,503 2,403,621 37,300 Medtronic Inc. 2,518,102 2,210,903 47,200 New River Pharmaceuticals Inc. 1,552,096 1,830,778 57,900 Teva Pharmaceutical Industries Ltd., ADR* 2,906,733 2,784,772

27,629,125 31,734,964 CONSUMER DISCRETIONARY (12.8%)

71,600 Advance Auto Parts Inc. 2,711,312 3,482,158 82,200 Clear Channel Communications Inc. 3,136,193 2,785,123 89,500 Coach Inc. 2,685,255 3,614,705 51,400 Comcast Corp., Special Class A 2,035,675 1,568,054 21,400 Getty Images Inc.* 1,921,784 1,871,563 37,238 Liberty Global Inc.* 1,577,873 890,285 72,900 McDonald's Corp. 2,845,933 2,925,536

154,400 News Corp., Class A* 3,290,554 2,995,310 39,300 Nordstrom Inc.* 1,383,551 1,798,381 58,100 Nutri/System Inc.* 2,417,163 3,224,611 13,800 Station Casinos Inc.* 1,118,769 1,279,264 58,800 Walt Disney Co.* 1,821,892 1,915,361 47,900 Yum! Brands Inc. 2,836,024 2,733,466

29,781,978 31,083,817

INDUSTRIALS (12.1%) 55,900 AMR Corp.* 811,314 1,766,053 21,700 Boeing Co. 1,883,804 1,975,100 89,100 Burlington Northern Santa Fe Corp. 4,966,490 8,671,692 36,000 Cintas Corp. 1,894,866 1,792,011 55,700 Corrections Corp. of America 2,759,786 2,940,481 8,200 FedEx Corp. 1,071,075 1,081,649

27,800 Flour Corp.* 2,089,071 2,785,844 38,000 Kansas City Southern 950,967 1,096,239 18,900 Manitowoc Co. 1,161,277 2,012,071 12,000 Multi-Fineline Electronix Inc.* 711,760 819,762 50,100 Republic Services Inc. 2,224,747 2,487,446 55,600 UTI Worldwide Inc. 1,484,018 2,052,044

22,009,175 29,480,392 MATERIALS (7.4%)

94,500 Alcoa Inc. 3,171,959 3,372,950 37,300 Ecolab Inc., PFD. 1,703,475 1,664,167 59,400 Freeport-McMoRan Copper & Gold Inc.,

Class B* 2,850,790 4,146,622 39,400 Inco Ltd.* 2,052,325 2,293,868 49,700 Praxair Inc. 2,731,638 3,201,302 43,000 Teck Cominco Ltd., Class B 1,525,786 3,231,020

14,035,973 17,909,929 ENERGY (6.2%)

27,500 Burlington Resources Inc. 1,477,244 2,952,026 69,500 Chesapeake Energy Corp.* 1,520,393 2,549,632 25,100 ConocoPhillips* 1,853,447 1,851,279 45,900 Devon Energy Corp.* 2,314,666 3,279,261 25,700 Patterson-UTI Energy Inc. 813,402 959,323 63,900 Weatherford International Ltd. 2,385,703 3,414,418

10,364,855 15,005,939 CONSUMER STAPLES (5.3%)

29,600 Archer-Daniels-Midland Co. 1,040,364 1,163,326 128,000 CVS Corp. 4,104,589 4,465,499 74,200 Hain Celestial Group Inc. 1,966,294 2,269,678 32,000 Loews Corp - Carolina Group 1,843,462 1,766,690 46,700 PepsiCo Inc. 3,076,018 3,152,059

12,030,727 12,817,252 TELECOMMUNICATION SERVICES (1.7%)

136,400 Sprint Nextel Corp. 3,774,355 4,116,534

Total Investments (91.3%) 184,444,331 221,717,937

Other Assets (net) (8.7%) 21,066,467

Total Net Assets (100.0%) 242,784,404

*Denotes all or part of securities lent.The accompanying notes and supplementary schedules are an integral part of these financial statements. All common shares unless otherwise noted. Percentages shown in brackets relate investments at market value to total net assets of the Fund.

Annual Report as at March 31, 2006 CIG - 622

– 3 –

Synergy American FundFinancial Statements


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

AssetsInvestments at market valueCash and short term investmentsMargin for short salesIncome taxes recoverableDaily variation margin on derivative investmentsUnrealized gain on derivative investmentsReceivable for unit subscriptionsReceivable for securities soldDividends and accrued interest receivable

LiabilitiesBank overdraftManagement fees payableAccrued expensesUnrealized loss on derivative investmentsPremium received from options contractPayable for securities purchasedPayable for unit redemptionsInvestments sold short at market valueDistributions payable

Net assets and unitholders' equity

Net assets per classClass AClass FClass I

Net asset value per unitClass AClass FClass I

Number of units outstanding(see Schedule of Fund Unit Transactions)

Class AClass FClass I

Approved on behalf of the Board of Directors:

––––––––––––––––––––––––– –––––––––––––––––––––––––William T. Holland Peter W. AndersonDirector Director

IncomeDividendsInterest Securities lending (Note 5)Derivative income (loss)Income distribution from investmentsLess: Foreign withholding taxes

ExpensesManagement fees (Note 4)Administrative fees (Note 4)Custody feesLegal feesAudit feesGoods and services tax

Net income (loss) for the period

Realized and unrealized gain (loss) on investments(see Schedule of Commissions)

Realized gain (loss) on investmentsForeign exchange gain (loss)Capital gain distribution from investmentsChange in unrealized appreciation (depreciation) of investmentsNet gain (loss) on investmentsIncrease (decrease) in net assets from operations

Increase (decrease) in net assets from operations per classClass AClass FClass I

Increase (decrease) in net assets from operationsper unit (Note 2)


as at as at March 31, 2006 Dec. 31, 2004

221,718 144,60819,726 12,841

- -- -- -- -

839 551,913 128

107 104244,303 157,736

- -- -- 3- 35- 15

1,244 -275 298

- 2- -

1,519 353242,784 157,383

113,947 70,704221 84,307

128,616 2,372

13.38 11.787.79 6.77

14.64 12.53

8,517,838 6,003,67128,345 12,456,385

8,784,373 189,301

Period from Jan. 1, 2005 Year endedto March 31, 2006 Dec. 31, 2004

3,375 1,847603 12736 1614 388

- -(361) (279)

3,667 2,099

2,732 2,572341 575

- 33 33 4

215 2193,294 3,376

373 (1,277)

10,661 16,016(887) (1,622)

- -20,659 (2,138)30,433 12,25630,806 10,979

10,773 4,2954,783 6,297

15,250 387

1.67 0.621.21 0.422.06 0.93

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

Statements of Net Assets(in $000’s except for per unit amounts and units outstanding)

– 4 –

Class ANet assets, beginning of periodCapital transactions

Proceeds from units issued Reinvested distributions (Note 6) Amounts paid for units redeemedFund merger (Note 1)

Distributions to investorsFrom realized gainsFrom net incomeFrom return of capital

Increase (decrease) in net assets from operationsNet assets, end of period

Class FNet assets, beginning of periodCapital transactions




Class INet assets, beginning of periodCapital transactions




Total FundNet assets, beginning of periodCapital transactions




2,372 9,583

137,140 1,616- -

(26,146) (9,214)- -

110,994 (7,598)

- -- -- -- -

15,250 387128,616 2,372

157,383 206,964

224,389 50,517- -

(237,814) (111,077)68,020 -54,595 (60,560)

- -- -- -- -

30,806 10,979242,784 157,383

70,704 88,886

25,077 13,627- -

(60,580) (36,104)67,973 -32,470 (22,477)

- -- -- -- -

10,773 4,295113,947 70,704

84,307 108,495

62,172 35,274- -

(151,088) (65,759)47 -

(88,869) (30,485)

- -- -- -- -

4,783 6,297221 84,307

Synergy American FundFinancial Statements


Statements of Changes in Net Assets (in $000’s)



Statements of Changes in Net Assets (cont’d)(in $000’s)


– 5 –

Class ABalance, beginning of periodUnits issued for cashUnits issued for reinvested distributions (Note 6)Units redeemedUnits issued on fund merger (Note 1)Balance, end of period

Class FBalance, beginning of periodUnits issued for cashUnits issued for reinvested distributions (Note 6)Units redeemedUnits issued on fund merger (Note 1)Balance, end of period

Class IBalance, beginning of periodUnits issued for cashUnits issued for reinvested distributions (Note 6)Units redeemedUnits issued on fund merger (Note 1)Balance, end of period

Schedule of Securities Lending (Note 5)(in $000’s)


LoanedCollateral (non-cash)Income

43,62847,098

36

Synergy American FundFinancial Statements – Supplementary Schedules

Net capital loss carried forward

Non-capital losses expiring:

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Total

195,439

-

6,888

-

2,762

-

-

-

-

-

-

9,650

Schedule of Loss Carry Forwards (in $000’s)


Schedule of Commissions(in $000’s)


Brokerage commissionsSoft Dollar commissions†

846 2,01675 -

Schedule of Fund Unit Transactions


6,003,671 8,040,3722,026,946 1,212,609

- -(4,941,963) (3,249,310)5,429,184 -8,517,838 6,003,671

12,456,385 17,246,3198,986,586 5,464,002

- -(21,421,109) (10,253,936)

6,483 -28,345 12,456,385

189,301 832,31110,576,327 138,133

- -(1,981,255) (781,143)

- -8,784,373 189,301


†A portion of brokerage commissions paid was used to cover research and market data services, termed soft dollar commissions. This amount has been estimated by the Manager of the Fund and will be shown for the period to March 31, 2006and onwards.

– 6 –

Synergy Extreme Canadian Equity FundStatement of Investment Portfolio as at March 31, 2006



MATERIALS (26.4%) 27,100 Alcan Inc. 1,277,163 1,447,953 15,100 Alcoa Inc. 510,901 538,958

117,900 Bema Gold Corp.* 364,998 608,364 29,100 Centerra Gold Inc.* 537,823 1,122,678 6,500 Ecolab Inc., PFD. 296,839 290,002

410,000 European Minerals Corp. 430,500 446,900 361,600 Eurozinc Mining Corp. 506,240 734,048 21,500 Falconbridge Ltd. 823,467 878,705 28,000 First Quantum Minerals Ltd. 594,975 1,344,000 7,600 Freeport-McMoRan Copper & Gold Inc.,

Class B* 352,594 530,544 155,903 Hudbay Minerals Inc.* 422,352 1,523,172 11,500 PAN American Silver Corp.* 296,726 339,365 68,400 Shore Gold Inc. 529,805 482,220 31,800 Silver Wheaton Corp.* 253,929 396,864 21,100 Teck Cominco Ltd., Class B 776,496 1,585,454

1,035,000 Tournigan Gold Corp., Warrants 1,500,750 2,515,050 147,300 UEX Corp. 546,906 681,999 22,600 Viceroy Exploration Ltd. 128,402 190,518

10,150,866 15,656,794 FINANCIALS (17.5%)

7,400 CB Richard Ellis Group Inc., Class A 331,777 697,477 7,700 JPMorgan Chase & Co. 340,689 374,478

41,300 Manulife Financial Corp. 2,608,503 3,025,638 8,500 Merrill Lynch & Co. Inc. 658,468 781,897

60,300 Royal Bank of Canada 2,454,813 2,968,569 38,900 Toronto-Dominion Bank 2,032,376 2,531,223

8,426,626 10,379,282 ENERGY (16.0%)

292,900 Bankers Petroleum Ltd. 442,757 272,397 2,600 Burlington Resources Inc. 153,595 279,101

20,800 Husky Energy Inc.* 1,260,129 1,469,520 18,800 Nexen Inc. 983,646 1,208,840 49,600 Petro-Canada 2,431,159 2,746,848 43,100 Shell Canada Ltd., Class A 1,369,763 1,769,255 8,200 Weatherford International Ltd. 301,840 438,157

39,700 Western Oil Sands Inc., Class A 965,455 1,285,883 7,908,344 9,470,001

INDUSTRIALS (12.4%) 42,700 Algoma Steel Inc. 1,265,628 1,349,747 26,200 ATS Automation Tooling Systems Inc. 435,363 463,740 6,300 Burlington Northern Santa Fe Corp. 426,845 613,150

82,800 CAE Inc. 610,151 760,104 43,300 Canadian National Railway Co. 1,451,579 2,291,436

1,060,000 Chariot Resources Ltd. 455,800 424,000 8,600 Corrections Corp. of America 434,210 454,006 3,600 Flour Corp. 275,019 360,757

300,000 Ivernia Inc.* 470,139 636,000 5,824,734 7,352,940

INFORMATION TECHNOLOGY (8.2%) 11,000 Amdocs Ltd. 442,427 463,280 27,400 Certicom Corp. 210,862 213,720 17,900 Citrix Systems Inc. 614,024 792,350 17,100 Corning Inc. 412,126 537,446 19,300 Hewlett-Packard Co. 660,911 741,614

285,000 Intrinsyc Software International Inc. 256,500 250,800 8,500 MEMC Electronic Materials Inc. 141,089 366,527

10,800 QUALCOMM Inc. 520,863 638,388 6,800 Red Hat Inc. 208,056 222,219 4,100 Silicon Laboratories Inc. 238,620 263,134

11,200 Varian Semiconductor Equipment Associates Inc. 386,856 367,316

4,092,334 4,856,794 CONSUMER DISCRETIONARY (5.5%)

7,550 Advance Auto Parts Inc. 356,268 367,183 20,500 Gildan Activewear Inc., Class A* 499,322 1,132,420 10,400 Nutri/System Inc.* 467,543 577,211 26,900 Rogers Communications Inc., Class B 1,279,575 1,198,395

2,602,708 3,275,209 HEALTH CARE (3.9%)

16,600 Aetna Inc. 559,286 952,726 32,700 BioMarin Pharmaceuticals Inc. 461,997 512,537 4,500 Genzyme Corp. 375,333 353,294

10,600 Teva Pharmaceutical Industries Ltd., ADR* 536,252 509,820 1,932,868 2,328,377

CONSUMER STAPLES (1.0%) 17,300 CVS Corp. 573,058 603,540


Other Assets (net) (9.1%) 5,401,300

Total Net Assets (100.0%) 59,324,237



– 7 –

Synergy Extreme Canadian Equity FundFinancial Statements




LiabilitiesBank overdraftManagement fees payableAccrued expensesUnrealized loss on derivative investmentsPremium received from options contractPayable for securities purchasedPayable for unit redemptionsInvestments sold short at market valueDistributions payable


Net assets per classClass AClass F

Net asset value per unitClass AClass F


Class AClass F








Increase (decrease) in net assets from operations per classClass AClass F


Class AClass F


53,923 57,5344,625 4,627

- -- -- -- 9

372 183998 1,12631 39

59,949 63,518

- -- -- 1- -- 11

336 1,275289 142

- -- -

625 1,42959,324 62,089

55,351 61,1143,973 975

6.71 5.156.83 5.18

8,252,299 11,855,580581,436 188,211


689 388158 7750 1511 65

- -(23) (10)885 535

1,381 1,226141 240

- 31 11 1

106 1031,630 1,574(745) (1,039)

13,076 16,422(31) (194)

- -2,191 106

15,236 16,33414,491 15,295

14,132 15,058359 237

1.44 1.131.56 1.18



– 8 –













62,089 57,690

17,448 19,734- -

(34,704) (30,630)- -

(17,256) (10,896)

- -- -- -- -

14,491 15,29559,324 62,089

61,114 56,848

13,811 19,491- -

(33,706) (30,283)- -

(19,895) (10,792)

- -- -- -- -

14,132 15,05855,351 61,114

975 842

3,637 243- -

(998) (347)- -

2,639 (104)

- -- -- -- -

359 2373,973 975

Synergy Extreme Canadian Equity FundFinancial Statements







– 9 –






6,1626,653

50

Synergy Extreme Canadian Equity FundFinancial Statements – Supplementary Schedules



2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Total

43,353

-

-

-

-

-

-

-

-

-

-

-




Period from inception Year endedto March 31, 2006 Dec. 31, 2004


744 88566 -



11,855,580 14,253,9702,502,265 4,262,765

- -(6,105,546) (6,661,155)

- -8,252,299 11,855,580

188,211 212,002566,686 52,888

- -(173,461) (76,679)

- -581,436 188,211



– 10 –

Synergy Extreme Global Equity FundStatement of Investment Portfolio as at March 31, 2006



U.S.A. (40.3%) 5,400 Advance Auto Parts Inc. 219,377 262,621

12,500 Aetna Inc. 573,748 717,414 11,400 Alcoa Inc. 386,924 406,896 8,300 Amdocs Ltd. 333,842 349,566

24,100 BioMarin Pharmaceuticals Inc. 343,439 377,741 4,400 Burlington Northern Santa Fe Corp. 271,340 428,232 1,700 Burlington Resources Inc. 136,569 182,489 5,200 CB Richard Ellis Group Inc., Class A 268,164 490,119

13,200 Citrix Systems Inc. 464,152 584,303 12,500 Corning Inc. 311,855 392,870 6,800 Corrections Corp. of America 343,485 358,982 9,400 CVS Corp. 314,716 327,935 4,900 Ecolab Inc., PFD. 223,736 218,617 2,700 Flour Corp. 214,004 270,568 5,000 Freeport-McMoRan Copper & Gold Inc.,

Class B* 260,072 349,042 2,800 Genzyme Corp. 233,230 219,827

13,800 Hewlett-Packard Co. 484,288 530,273 5,300 JPMorgan Chase & Co. 237,421 257,758 6,200 MEMC Electronic Materials Inc. 104,571 267,349 5,600 Merrill Lynch & Co. Inc. 447,531 515,132 7,500 Nutri/System Inc.* 336,890 416,258 7,800 QUALCOMM Inc. 390,874 461,058 5,400 Red Hat Inc. 165,351 176,468 3,000 Silicon Laboratories Inc. 173,707 192,537 8,800 Varian Semiconductor Equipment

Associates Inc. 304,433 288,605 4,800 Weatherford International Ltd. 176,046 256,482

7,719,765 9,299,142 JAPAN (9.7%)

3,000 Aeon Co. Ltd. 72,119 84,963 3,700 Daiei Inc. 126,482 138,737 2,400 Hoya Corp. 81,408 113,085 2,700 Joint Corp. 71,870 100,705 3,200 Keihin Corp. 97,620 102,213

9 Mitsubishi UFJ Financial Group Inc. 144,596 160,700 26 Mizuho Financial Group Inc. 223,295 248,370

9,000 Nikko Cordial Corp.* 125,311 174,091 15 Nippon Telegraph & Telephone Corp. 78,591 75,142

4,500 Nomura Holdings Inc.* 89,898 117,177 200 Rakuten Inc. 192,420 212,282

3,700 Sega Sammy Holdings Inc.* 156,415 175,440 2,500 Sony Corp. 126,522 135,156

12 Sumitomo Mitsui Financial Group Inc. 106,137 154,748 10,000 Sumitomo Trust & Banking Co. Ltd.* 100,895 135,107

100 Tokyu Land Corp. 549 1,044 30,000 Ube Industries Ltd.* 74,950 103,264

1,869,078 2,232,224 NETHERLANDS (4.5%)

8,300 ABN AMRO Holding NV 255,604 290,565 8,900 ASML Holding NV 213,231 212,205 4,500 ING Groep NV 132,142 207,585 1,900 United Services Group NV 143,335 160,641 6,900 Vedior NV 149,277 157,879

893,589 1,028,875

SOUTH KOREA (4.0%)1,700 Hynix Semiconductor Inc. 63,315 59,046 2,000 Hyundai Engineering & Construction Co. Ltd. 62,592 119,102 2,400 Kookmin Bank 188,783 242,001 1,100 LG Card Co. Ltd. 46,744 69,141

200 NHN Corp. 38,044 72,110 300 Orion Corp. 79,719 103,478

10,800 Woori Finance Holdings Co. Ltd. 243,251 250,510 722,448 915,388

U.K. (3.8%)10,900 BG Group PLC 147,738 159,107 53,900 Corus Group PLC 79,976 96,229 5,900 Next PLC 208,197 197,501

11,100 Vedanta Resources PLC* 194,759 317,522 11,100 Wolfson Microelectronics PLC 98,273 99,761

728,943 870,120 GERMANY (2.5%)

5,400 Commerzbank AG 219,344 251,241 2,500 Prosieben Sat.1 Media AG, PFD. 75,359 76,058

400 SAP AG 94,412 101,322 3,100 Vivacon AG 128,199 156,689

517,314 585,310 CANADA (2.2%)

240,000 Chariot Resources Ltd. 103,200 96,000 92,000 European Minerals Corp. 96,600 100,280 9,600 Western Oil Sands Inc., Class A 256,538 310,944

456,338 507,224 FRANCE (2.2%)

1,472 Alstom 71,522 144,138 2,700 Business Objects SA 110,910 115,076 2,600 Cap Gemini SA 137,206 165,411

700 Sanofi-Aventis 73,184 77,756 392,822 502,381

SWEDEN (1.6%)5,400 Atlas Copco AB, Series A 155,047 177,298 6,100 Lindex AB 86,417 105,171 6,000 Nordea Bank AB (SEK)* 52,384 86,580

293,848 369,049 BELGIUM (1.5%)

500 Cumerio Strip - 71 1,700 ICOS Vision Systems Corp. 96,401 101,731 2,000 InBev NV 98,860 109,523 1,100 Option NV* 87,979 129,503

500 Umicore, Strip VVPR - 64 283,240 340,892

ISRAEL (1.3%)6,400 Teva Pharmaceutical Industries Ltd., ADR* 324,833 307,816

TAIWAN (1.3%)12,000 Catcher Technology Co. Ltd. 101,462 126,057 43,000 Nan Ya Plastics Corp. 72,773 74,640 8,900 Taiwan Semiconductor

Manufacturing Co. Ltd. (USD) 90,241 104,571 264,476 305,268

AUSTRALIA (1.1%)72,100 Sino Gold Ltd.* 201,654 255,661



– 11 –

Synergy Extreme Global Equity FundStatement of Investment Portfolio as at March 31, 2006


BRAZIL (1.0%)4,100 Cia Vale do Rio Doce, ADR 154,425 232,391

HONG KONG (0.9%)91,000 CNOOC Ltd. 82,725 82,169

286,900 Shenzhen Expressway Co. Ltd., Class H 125,119 131,688 207,844 213,857

HUNGARY (0.9%)1,200 Egis Rt. 198,253 212,275

LUXEMBOURG (0.7%)9,400 Stolt Offshore SA 128,265 172,493

SWITZERLAND (0.7%)900 Roche Holding AG* 155,305 156,468

SINGAPORE (0.5%)70,000 Starhub Ltd. 106,752 109,758

NORWAY (0.5%)11,700 Tomra Systems ASA 109,863 109,434

GREECE (0.4%)2,300 Alpha Credit Bank 98,519 99,199

CHINA (0.4%)50,600 Shanghai Zhenhua Port Machinery Co. 63,861 91,780


Other Assets (net) (18.0%) 4,165,936

Total Net Assets (100.0%) 23,082,941



– 12 –

Synergy Extreme Global Equity FundFinancial Statements




LiabilitiesBank overdraftManagement fees payableAccrued expenses Unrealized loss on derivative investmentsPremium received from options contractPayable for securities purchasedPayable for unit redemptionsInvestments sold short at market valueDistributions payable


Net assets per classClass AClass F

Net asset value per unitClass AClass F


Class AClass F








Increase (decrease) in net assets from operations per classClass AClass F


Class AClass F


18,917 6,3563,960 1,062

- -- -- -- 1

317 5623 815 5

23,232 7,488

- -1 -- -- -- 1

115 -33 10

- -- -

149 1123,083 7,477

22,445 7,297638 180

8.21 6.678.91 7.14

2,733,429 1,094,61671,545 25,257


193 5756 132 11 6- -

(21) (7)231 70

313 13731 24

- 1- -- -

24 12368 174(137) (104)

763 749(27) (36)

- -2,407 1283,143 8413,006 737

2,930 71876 19

1.92 0.772.19 0.90



– 13 –













7,477 4,532

18,614 5,490- 171

(8,116) (3,279)2,103 -

12,601 2,382

(1) (174)- -- -

(1) (174)3,006 737

23,083 7,477

7,297 4,421

18,149 5,410- 165

(7,993) (3,249)2,063 -

12,219 2,326

(1) (168)- -- -

(1) (168)2,930 718

22,445 7,297

180 111

465 80- 6

(123) (30)40 -

382 56

- (6)- -- -- (6)

76 19638 180

Synergy Extreme Global Equity FundFinancial Statements







– 14 –






2,3832,572

2

Synergy Extreme Global Equity FundFinancial Statements – Supplementary Schedules



2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Total

-

-

-

-

-

-

-

-

-

-

-

-






78 807 -



1,094,616 740,5832,481,542 833,314

- 24,823(1,130,046) (504,104)

287,317 -2,733,429 1,094,616

25,257 17,35857,366 11,425

- 861(16,214) (4,387)

5,136 -71,545 25,257



– 15 –

Synergy Tactical Asset Allocation FundStatement of Investment Portfolio as at March 31, 2006



FUNDS (26.1%) 15,450,816 Synergy Global Style Management

Corporate Class (A Shares) 77,630,591 85,906,529

FINANCIALS (19.3%) 210,000 American Express Canada Credit Corp.

4.24% 01/27/2009 209,958 209,108 400,000 Bank of Ireland 3.8% 09/22/2015 399,440 387,024 45,778 Bank of Montreal 2,590,721 3,037,370

200,000 Bank of Montreal, Series 12 Callable 10.85% 12/20/2008 257,060 232,078

87,010 Bank of Nova Scotia 3,378,768 4,073,808 900,000 Bank of Nova Scotia 3.93% 02/18/2010 894,123 883,188

2,929 Brookfield Asset Management Inc., Class A 114,657 188,276 4,100,000 Canada Housing Trust No. 1 4.75%

03/15/2007 4,125,490 4,124,518 1,100,000 Canada Housing Trust No. 1 5.1%

09/15/2007 1,117,078 1,115,279 710,000 Canadian Imperial Bank of Commerce 4.55%

03/28/2016 708,871 707,664 500,000 Canadian Oil Sands Ltd. 3.95% 01/15/2007 499,580 498,635

9,220 Canadian Western Bank 266,077 376,821 2,400 CB Richard Ellis Group Inc., Class A 151,448 226,209

460,000 Co-operators Financial Services Ltd. 5.07% 07/20/2012 459,949 449,337

1,000,000 Depfa ACS Bank 5.25% 03/31/2025 1,058,190 1,041,470 290 E-L Financial Corp. Ltd. 110,139 165,590

2,818 Fairfax Financial Holdings Ltd. 567,067 349,996 700,000 Great West Life Capital Trust

5.995% 12/31/2012 700,000 748,055 17,000 Great-West Lifeco Inc.* 482,705 503,200 15,700 Guardian Capital Group Ltd., Class A* 290,579 393,285

500,000 HSBC Bank of Canada 4.94% 03/16/2021 499,685 498,150 420,000 HSBC Canada Asset Trust Securities 5.149%

06/30/2015 425,856 423,091 84,391 IGM Financial Inc.* 3,741,544 4,080,305 40,500 KCP Income Fund 445,482 424,440

685,000 Kimco North Trust II 4.45% 04/21/2010 697,357 676,458 13,600 Laurentian Bank Of Canada* 436,180 434,520 14,091 Legacy Hotels REIT 96,618 117,660 84,000 Manulife Financial Corp.* 5,087,194 6,153,840

290,000 Met Life Global Funding 4.5% 02/10/2011 289,371 288,646 500,000 MI Developments Inc. 6.05% 12/22/2016 508,920 493,860 12,600 National Bank Of Canada 655,964 804,636

180,000 National Bank of Canada 4.7% 11/02/2020 178,227 176,497 640,000 Newcourt Credit Group Inc. 7.05% 06/28/2007 671,885 660,346 700,000 Nordea Bank AB 3.95% 08/05/2015 699,559 681,800

7,832 Northbridge Financial Corp. 205,869 229,478 111,615 Power Corp. Of Canada 3,376,142 3,739,103 13,335 Power Financial Corp. 418,145 472,192

600,000 RioCan REIT 4.91% 03/08/2011 607,200 593,190 207,802 Royal Bank of Canada 7,945,941 10,230,092 500,000 Royal Bank of Scotland PLC 4.25%

03/30/2015 500,525 494,190 11,535 streetTRACKS Gold Trust 612,616 782,742 76,421 Sun Life Financial Inc. 3,441,940 3,794,303

FINANCIALS (19.3%) (cont’d)600,000 Textron Financial Canada Funding Corp.

4% 04/01/2008 597,900 595,398 96,800 Toronto-Dominion Bank 5,330,973 6,298,776

600,000 Toronto-Dominion Bank 4.97% 10/30/2104 599,676 596,496 56,452,669 63,451,120

GOVERNMENT BONDS (14.0%) 1,450,000 55 Ontario School Board Trust 5.9%

06/02/2033 1,683,088 1,661,802 6,374,000 Canadian Government Bond 2.75%

12/01/2007* 6,244,662 6,246,520 975,000 Canadian Government Bond 4% 06/01/2016* 955,258 952,253

2,420,000 Canadian Government Bond 4% 09/01/2010* 2,413,673 2,404,754 7,130,000 Canadian Government Bond 4.5%

06/01/2015* 7,348,780 7,255,773 825,000 Canadian Government Bond 5% 06/01/2014* 869,163 866,663

6,700,000 Canadian Government Bond 5.5% 06/01/2009* 7,043,375 6,978,653

325,000 Canadian Government Bond 5.5% 06/01/2010 344,050 341,461

4,905,000 Canadian Government Bond 5.75% 06/01/2029 5,953,708 5,931,862

7,000 Canadian Government Bond 6% 06/01/2008* 7,437 7,288 1,000,000 City of Montreal 6% 06/01/2043 1,187,580 1,161,070

700,000 Concordia University 6.55% 09/02/2042 783,230 866,075 1,350,000 Eurofima 5.15% 12/13/2019 1,427,895 1,404,000

725,000 Inter-American Development Bank 3.4% 07/21/2010 703,903 699,197

388,432 New Brunswick F-M Project Co. Inc., Callable 6.47% 11/30/2027 431,716 449,575

300,000 O.S.I.F.A. 4.6% 06/01/2015 299,097 299,955 400,000 Province of Ontario 4.7% 06/02/2037* 397,056 393,292 500,000 Province of Ontario 5.6% 06/02/2035 564,700 562,345

2,500,000 Province of Ontario 6.5% 03/08/2029 3,095,200 3,088,125 1,000,000 Province of Quebec 5% 12/01/2015 1,040,000 1,024,200

200,000 Province of Quebec 5.5% 12/01/2014 201,472 212,292 1,000,000 Province of Quebec 6% 10/01/2029 1,148,430 1,149,580 1,000,000 University of British Columbia 6.65%

12/01/2031 1,282,200 1,271,620 800,000 University of Ottawa 6.28% 04/15/2043 994,400 973,280

46,420,073 46,201,635 ENERGY (10.4%)

8,100 Addax Petroleum Corp. 160,490 226,800 5,620 Akita Drilling Ltd., Class A, Non-voting shares 118,490 131,227

1,300,000 Anderson Exploration Ltd. 6.55% 08/02/2006 1,330,889 1,309,425 46,700 Bankers Petroleum Ltd. 65,924 43,431 41,600 Berens Energy Ltd. 121,456 107,744 31,600 BirchCliff Energy Ltd. 135,533 218,356 9,500 Bonavista Energy Trust 309,455 353,875

17,713 Canadian Natural Resources Ltd. 619,857 1,149,574 685,000 Canadian Natural Resources Ltd. 4.5%

01/23/2013 675,294 670,848 12,009 Canadian Oil Sands Trust 863,372 2,012,708 2,273 CHC Helicopter Corp., Class A 56,223 67,281

18,500 Cordero Energy Inc. 109,919 113,960 66,973 EnCana Corp. 3,095,639 3,650,029

600,000 Encana Corp. 3.6% 09/15/2008 599,802 589,770



– 16 –




ENERGY (10.4%) (cont’d)9,900 Enerflex Systems Ltd. 229,014 276,309 4,400 Gentry Resources Ltd., Class B 14,564 25,520 9,900 Husky Energy Inc. 576,787 699,435

14,089 Imperial Oil Ltd. 1,230,130 1,771,551 38,500 Nexen Inc. 2,053,854 2,475,550 8,000 Niko Resources Ltd. 307,212 472,000

10,282 NuVista Energy Ltd.* 156,311 152,174 4,100 Penn West Energy Trust 156,736 175,029

131,067 Petro-Canada 5,816,460 7,258,490 5,594 Prairie Schooner Petroleum Ltd. 108,887 111,041

22,300 Producers Oilfield Services Inc. 174,579 312,200 38,247 ProspEx Resources Ltd. 130,743 156,813 8,800 Real Resources Inc. 211,098 202,400

108,769 Shell Canada Ltd., Class A 3,441,324 4,464,968 25,600 Suncor Energy Inc. 1,750,737 2,294,528

600,000 Terasen Inc. 4.85% 05/08/2006 607,728 600,432 9,680 Thunder Energy Trust 115,422 97,865 7,715 Total Energy Services Trust 66,248 131,155

17,763 TransCanada Corp. 554,878 598,080 4,419 Trican Well Service Ltd. 223,685 235,312

12,700 Trinidad Energy Services Income Trust 195,107 225,298 11,500 Western Lakota Energy Services Inc. 87,663 206,770 22,400 Western Oil Sands Inc., Class A 572,102 725,536

27,043,612 34,313,484 MATERIALS (5.8%)

10,200 Agnico-Eagle Mines Ltd.* 218,482 362,406 12,567 Agrium Inc. 313,576 370,224 18,561 Alcan Inc. 829,173 991,714 26,200 AUR Resources Inc. 196,904 388,546 15,411 Barrick Gold Corp. 442,696 489,607 42,200 Bema Gold Corp.* 129,356 217,752 10,500 Cameco Corp.* 311,559 441,000 27,900 Canam Manac Group Inc., Class A 179,376 295,740 9,375 Canfor Corp. 118,777 134,063

45,386 Cascades Inc. 527,142 533,739 8,900 CCL Industries, Class B 225,117 281,062

11,600 Centerra Gold Inc.* 227,400 447,528 44,043 Domtar Inc.* 444,401 365,557 21,100 Eldorado Gold Corp. 103,488 119,004 89,100 Eurozinc Mining Corp. 78,062 180,873 31,042 Falconbridge Ltd. 796,518 1,268,687

600,000 Falconbridge Ltd. 8.5% 12/08/2008 666,373 655,998 17,000 First Quantum Minerals Ltd. 371,942 816,000 12,400 FNX Mining Co. Inc.* 145,515 161,200 15,900 Gammon Lake Resources Inc.* 136,004 332,628 50,652 Gerdau AmeriSteel Corp. 294,838 545,016 10,300 Glamis Gold Ltd. 347,661 392,430 20,000 Global Alumina Corp. (USD) 40,468 36,206 49,009 High River Gold Mines Ltd. 70,844 115,171 50,746 Hudbay Minerals Inc.* 148,798 495,788 16,900 Iamgold Corp. 144,666 169,845 6,700 Inco Ltd.* 351,656 390,074 9,731 Inmet Mining Corp. 224,476 338,444 4,962 International Forest Products Ltd., Class A 31,397 37,761

12,667 LionOre Mining International Ltd.* 67,787 65,868 17,000 Meridian Gold Inc. 390,958 586,500 27,300 Metallica Resources Inc. 66,124 104,559

MATERIALS (5.8%) (cont’d)41,984 Methanex Corp. 778,044 1,003,418 65,400 Pacific Rim Mining Corp. 54,936 59,514 13,300 Paladin Resources Ltd. 44,113 55,727 5,400 PAN American Silver Corp.* 142,693 159,354 5,450 Potash Corp. of Saskatchewan 527,510 560,260

30,509 Sherritt International Corp.* 261,209 324,921 28,200 Shore Gold Inc. 145,108 198,810 3,100 Sico Inc. 42,155 44,795

10,000 Silver Wheaton Corp.* 84,229 124,800 49,176 Teck Cominco Ltd., Class B 2,169,534 3,695,085

152,500 Timminco Ltd. 128,815 45,750 23,000 Tournigan Gold Corp. 43,792 55,890 8,500 Viceroy Exploration Ltd. 49,315 71,655

30,000 Western Prospector Group Ltd.* 73,824 130,500 37,500 Yamana Gold Inc.* 179,757 403,125

13,366,568 19,064,594 INDUSTRIALS (5.7%)

11,700 ACE Aviation Holdings Inc., Class B 351,511 393,705 19,668 Aecon Group Inc. 113,389 118,598 15,900 Aeroplan Income Fund 194,616 205,110 57,400 Algoma Steel Inc. 1,701,336 1,814,414

900 Arctic Glacier Income Fund 9,971 9,972 9,600 ATS Automation Tooling Systems Inc. 141,298 169,920

40,800 CAE Inc. 298,647 374,544 117,096 Canadian National Railway Co. 4,503,503 6,196,720 10,600 Canadian Pacific Railway Ltd. 469,334 617,556 10,500 CSI Wireless Inc. 24,720 19,425 23,100 Exco Technologies Ltd. 109,157 92,400 20,600 Finning International Inc. 737,292 795,160 10,600 FirstService Corp. 295,997 301,888

700,000 FortisAlberta Inc. 5.33% 10/31/2014 736,120 724,332 589,739 Greater Toronto Airport Authority 6.45%

07/30/2029 664,821 656,415 210,000 Greater Toronto Airport Authority 6.47%

02/02/2034 238,033 236,004 363,000 Greater Toronto Airport Authority 7.05%

06/12/2030 388,604 434,275 27,572 Heroux-Devtek Inc. 118,603 127,658 11,800 Imaging Dynamics Co. Ltd. 58,674 54,870 58,300 Ivernia Inc.* 93,062 123,596 9,200 MacDonald Dettwiler & Associates Ltd. 413,481 418,600

84,298 Magellan Aerospace Corp. 263,879 266,382 20,300 Marsulex Inc. 146,587 173,768 24,419 Martinrea International Inc. 134,027 210,003 37,326 Quebecor World Inc.* 904,646 427,756 57,580 Russel Metals Inc. 1,284,894 1,471,169

488,668 Strait Crossing Development Inc. 6.17% 09/15/2031 481,406 514,860

2,955 Strongco Income Fund 14,592 55,554 41,776 Superior Plus Income Fund 1,238,456 718,547 16,270 Tekinon Corp. 86,761 87,858 13,900 Transat Inc., Class B 311,101 319,700 13,138 Transcontinental Inc., Class A 296,262 256,454 17,661 Vector Aerospace Corp. 45,455 81,064 5,100 Velan Inc. 64,127 74,409 4,600 Xantrex Technology Inc. 37,538 41,354

16,971,900 18,584,040



– 17 –




CONSUMER DISCRETIONARY (3.3%) 45,145 Canadian Tire Corp. Ltd., Class A 2,557,781 2,826,077 36,000 Consumers' Waterheater Income Fund 535,441 540,360 21,572 Danier Leather Inc., Sub-voting shares 220,755 186,598 4,163 Dorel Industries Inc., Class B* 145,683 133,216

12,419 Forzani Group Ltd., Class A 139,449 200,567 13,700 Gildan Activewear Inc., Class A* 413,064 756,788

325,000 Great Canadian Gaming Corp. 5.5% 07/21/2015 326,560 320,395

5,291 Le Chateau Inc. 186,214 297,619 17,000 Liquidation World Inc. 79,504 93,840 4,425 Magna International Inc., Class A 405,519 389,621 3,600 Mega Bloks Inc. 103,563 88,920

74,150 Rogers Communications Inc., Class B 3,038,517 3,303,383 500,000 Shaw Communications Inc. 7.4% 10/17/2007 537,500 518,150 16,000 Shaw Communications Inc., Class B 394,619 445,600 40,417 Yellow Pages Income Fund 550,124 656,372

9,634,293 10,757,506 CONSUMER STAPLES (2.7%)

9,900 Alimentation Couche-Tard Inc., Class B 224,795 251,460 700,000 Canada Safeway Ltd. 4.45% 11/14/2008 699,181 694,883

1,000,000 Canadian Wheat Board 4.75% 12/01/2014 1,040,670 1,021,720 800 Corby Distilleries Ltd., Class A 14,612 22,400

10,800 E.D. Smith Income Fund 109,815 101,412 19,306 Empire Co. Ltd., Class A 669,876 832,089 1,963 George Weston Ltd. 201,535 165,088

445,000 George Weston Ltd. 7.1% 02/05/2032 527,459 510,887 11,246 Liquor Stores Income Fund 200,596 224,358

1,000,000 Molson Coors Capital Finance ULC 5% 09/22/2015 997,510 970,920

25,168 Rothmans Inc. 488,895 509,652 4,718 Saputo Inc. 164,624 154,279

26,900 Saskatchewan Wheat Pool 180,834 203,095 69,800 Shoppers Drug Mart Corp. 2,826,228 3,102,610 4,027 Sobeys Inc. 153,033 152,019

8,499,663 8,916,872UTILITIES (1.5%)

17,201 Atco Ltd., Class I 540,415 604,099 575,000 Brascan Power Corp. 4.65% 12/16/2009 578,795 574,730 500,000 Canadian Hydro Developers Inc.

5.334% 09/01/2015 500,000 492,600 16,759 Caribbean Utilities Co. Ltd., Class A 230,266 236,646

100,000 Centra Gas Ontario Inc. 8.65% 10/19/2018 128,220 132,837 14,700 Emera Inc.* 306,236 280,770 14,100 Energy Savings Income Fund 262,433 256,056 1,976 EPCOR Power LP 70,039 66,690

14,233 Great Lakes Hydro Income Fund 263,966 266,157 15,310 Northland Power Income Fund 229,803 223,067 36,300 TransAlta Corp. 858,123 808,038

150,000 TransCanada Pipelines Ltd. 10.5% 08/20/2010 197,085 184,256 200,000 TransCanada Pipelines Ltd. 10.625%

10/20/2009 239,700 238,998 400,000 Union Gas Ltd. 8.75% 08/03/2018 480,800 536,008

4,885,881 4,900,952

HEALTH CARE (0.8%) 147,638 Access Health Abbotsford Ltd. 6.032%

03/07/2038 166,620 165,976 5,000 Aetna Inc. 255,185 286,966 4,600 Angiotech Pharmaceuticals Inc. 80,623 79,120

12,500 Aspreva Pharmaceuticals Corp.* 215,007 363,250 18,412 CML Healthcare Income Fund 259,748 268,999 23,800 Extendicare Inc., Class A 460,470 588,812 32,100 MDS Inc. 643,175 674,742 22,600 MediSolution Ltd. 10,524 7,910 28,300 Patheon Inc. 183,562 198,100 12,800 Theratechnologies Inc. 24,960 23,168

2,299,874 2,657,043 INFORMATION TECHNOLOGY (0.8%)

9,822 Aastra Technologies Ltd. 188,177 353,887 5,700 Certicom Corp. 43,856 44,460 9,000 March Networks Corp.* 150,315 308,250

213,730 Nortel Networks Corp. 791,028 763,017 8,200 Rand A Technology Corp. 22,183 16,236 8,200 Research In Motion Ltd. 654,016 810,898

12,800 Sierra Wireless Inc.* 171,436 174,336 10,300 Systems Xcellence Inc. 41,481 40,994

2,062,492 2,512,078 ASSET BACKED (0.6%)

600,000 Canada Capital Auto Receivables Asset Trust 3.203% 06/17/2007 599,080 592,140

220,000 Canada Capital Auto Receivables Asset Trust 3.383% 06/17/2008 220,000 215,659

500,000 CCIC 2003-WEM A2 4.588% 11/15/2013 501,675 499,050 575,000 Merrill Lynch Financial Assets Inc.

2006-CA18 A2(CMO) 4.678% 03/12/2039 574,984 574,195 1,895,739 1,881,044

TELECOMMUNICATION SERVICES (0.5%) 500,000 BCE Inc. 6.75% 10/30/2007 539,485 516,565 26,600 TELUS Corp. 1,126,730 1,218,812

1,666,215 1,735,377


Other Assets (net) (8.5%) 28,005,235

Total Net Assets (100.0%) 328,887,509



– 18 –

Synergy Tactical Asset Allocation FundFinancial Statements




LiabilitiesBank overdraftManagement fees payableAccrued expenses Unrealized loss on derivative investmentsPremium received from options contractPayable for securities purchasedPayable for unit redemptionsInvestments sold short at market valueDistributions payable


Net assets per classClass AClass FClass I

Net asset value per unitClass AClass FClass I










Increase (decrease) in net assets from operations per classClass AClass FClass I




300,882 71,22329,236 8,824

- -- -- -- 1

193 89810 1,013

1,170 243332,291 81,393

- -- -- 1- -- 1

3,056 5347 75

- -- 5

3,403 87328,888 81,306

96,468 80,2571,945 1,049

230,475 -

8.31 7.096.72 5.71

11.09 -

11,608,039 11,318,250289,660 183,595

20,788,602 -


1,912 5254,092 1,339

17 24 2- -

(2) -6,023 1,868

613 1,11492 232

- 34 13 2

49 95761 1,447

5,262 421

16,260 4,594(13) (11)

- -26,141 3,29342,388 7,87647,650 8,297

14,935 8,193290 104

32,425 -

1.29 0.761.14 0.671.45 -



– 19 –

Synergy Tactical Asset Allocation FundFinancial Statements











Class INet assets, beginning of periodCapital transactions








- -

240,990 -8,196 -

(42,939) -- -

206,247 -

(5,460) -(2,737) -

- -(8,197) -32,425 -

230,475 -

81,306 69,420

279,473 27,8779,256 2,894

(79,526) (24,246)- -

209,203 6,525

(6,179) (2,631)(3,092) (305)

- -(9,271) (2,936)47,650 8,297

328,888 81,306

80,257 68,737

37,114 27,4041,023 2,847

(35,825) (24,036)- -

2,312 6,215

(694) (2,592)(342) (296)

- -(1,036) (2,888)14,935 8,19396,468 80,257

1,049 683

1,369 47337 47

(762) (210)- -

644 310

(25) (39)(13) (9)

- -(38) (48)290 104

1,945 1,049





– 20 –

Synergy Tactical Asset Allocation FundFinancial Statements – Supplementary Schedules





Class IBalance, beginning of periodUnits issued for cashUnits issued for reinvested distributions (Note 6)Units redeemedUnits issued on fund merger (Note 1)Balance, end of period




36,06338,932

17



2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Total

-

-

-

-

-

-

-

-

-

-

-

-






528 16847 -



11,318,250 10,415,7374,863,948 4,002,636

130,429 405,497(4,704,588) (3,505,620)

- -11,608,039 11,318,250

183,595 128,228221,357 84,752

5,813 8,403(121,105) (37,788)

- -289,660 183,595

- -24,098,054 -

788,883 -(4,098,335) -

- -20,788,602 -

Annual Report as at March 31, 2006 – 21 –

1. THE FUNDS

The following funds are open-ended mutual fund trusts created under the laws of Ontario by declarations of trust or share classes of a corporation incorporated under the laws of Ontario.

CI Funds Inception Date of Class A Units Inception Date of Class F Units Inception Date of Class I UnitsCI Alpine Growth Equity Fund May 1, 1997 December 13, 1999 –(Formerly Clarica Alpine Growth Equity Fund)CI American Equity Fund May 25, 1989 July 17, 2000 July 31, 2001(Formerly BPI American Equity Fund)CI American Small Companies Fund September 9, 1985 July 17, 2000 July 31, 2001CI American Value Fund May 27, 1957 November 17, 2000 November 1, 1996CI Canadian Asset Allocation Fund September 1, 1992 November 17, 2000 November 1, 1996CI Canadian Bond Fund January 20, 1993 July 17, 2000 July 31, 2001CI Canadian Investment Fund November 16, 1932 November 17, 2000 November 1, 1996CI Canadian Small/Mid Cap Fund November 1, 1992 December 13, 1999 –(Formerly Clarica Canadian Small/Mid Cap Fund)CI Emerging Markets Fund September 10, 1991 July 17, 2000 July 31, 2001CI European Fund September 10, 1991 July 31, 2001 May 25, 2004CI Explorer Fund September 24, 1987 July 17, 2000 –CI Global Fund February 28, 1986 July 17, 2000 July 31, 2001CI Global Bond Fund August 31, 1992 July 17, 2000 July 31, 2001CI Global High Dividend Advantage Fund January 20, 2006 January 20, 2006 January 20, 2006CI Global Small Companies Fund April 7, 1993 July 17, 2000 July 31, 2001CI Global Value Fund June 12, 1996 July 17, 2000 July 31, 2001CI International Balanced Fund September 29, 1994 July 17, 2000 July 31, 2001CI International Fund August 5, 1999 July 17, 2000 August 29, 2003CI International Value Fund June 12, 1996 July 31, 2001 July 31, 2001CI Long-Term Bond Fund June 15, 1989 November 17, 2000 November 1, 1996CI Money Market Fund October 1, 1990 July 31, 2001 July 31, 2001CI Mortgage Fund May 1, 1993 December 13, 1999 –(Formerly Clarica Premier Mortgage Fund)CI Pacific Fund October 31, 1981 July 17, 2000 July 31, 2005CI Short-Term Bond Fund May 31, 1976 November 17, 2000 November 1, 1996CI US Money Market Fund January 30, 1995 – –

Portfolio Select SeriesSelect Staging Fund November 7, 2005 November 7, 2005 –

Harbour Funds Harbour Fund June 27, 1997 July 17, 2000 July 31, 2001Harbour Growth & Income Fund June 27, 1997 July 31, 2001 July 31, 2001

Signature Funds Signature Canadian Balanced Fund June 25, 1997 July 17, 2000 July 18, 2003Signature Canadian Resource Fund April 11, 1997 July 31, 2001 –Signature Corporate Bond Fund December 17, 2001 July 15, 2003 July 15, 2003Signature Dividend Fund October 29, 1996 July 31, 2001 August 29, 2003Signature High Income Fund December 18, 1996 July 31, 2001 August 28, 2002Signature Income & Growth Fund October 14, 1994 July 31, 2001 March 29, 2005Signature Select Canadian Fund May 13, 1998 July 17, 2000 July 31, 2001

Synergy FundsSynergy American Fund August 31, 1992 July 17, 2000 July 31, 2001Synergy Extreme Canadian Equity Fund April 10, 2000 November 13, 2000 _Synergy Extreme Global Equity Fund January 26, 2001 January 26, 2001 _Synergy Tactical Asset Allocation Fund September 18, 1998 November 13, 2000 August 22, 2002

Portfolio Series Funds CI Canadian Balanced Portfolio November 9, 1988 November 17, 2000 November 1, 1996CI Canadian Conservative Portfolio December 1, 1997 November 17, 2000 December 1, 1997CI Canadian Growth Portfolio December 1, 1997 November 17, 2000 November 1, 1996CI Canadian Income Portfolio December 1, 1997 November 17, 2000 December 1, 1997CI Canadian Maximum Growth Portfolio December 1, 1997 November 17, 2000 December 1, 1997CI Global Balanced Portfolio December 17, 2001 December 17, 2001 November 8, 2005CI Global Conservative Portfolio December 17, 2001 December 17, 2001 October 31, 2005CI Global Growth Portfolio December 17, 2001 December 17, 2001 October 11, 2002CI Global Maximum Growth Portfolio December 17, 2001 December 17, 2001 October 31, 2005

Notes to the Financial Statements - CI Mutual Funds


The following Funds offered Insights units to investors commencing on July 15, 2003.CI American Value Fund CI International FundCI Canadian Bond Fund CI International Value FundCI Canadian Investment Fund CI Money Market FundCI Global Bond Fund Signature Corporate Bond FundCI Global Fund Signature Select Canadian FundCI Global Small Companies FundCI Explorer Fund

CI Alpine Growth Equity Fund, CI Canadian Small/Mid Cap Fund and CI Mortgage Fund offeredClass B units to investors commencing on December 13, 1999.

Signature Dividend Fund offered Class X units and Class Y units to investors commencingAugust 29, 2003.

Harbour Growth & Income Fund and Signature Dividend Fund offered Class Z units to investorscommencing on August 29, 2003.

Signature Select Canadian Fund and Signature Canadian Balanced Fund offered Class Z Unitsto investors commencing on August 2, 2005.

CI Money Market Fund offered Class M units to investors commencing October 18, 2005.

Select Staging Fund offered Class W units to investors commencing November 7, 2005.

The Funds listed above changed their financial year end from December 31 to March 31.

The date of inception of each Fund is shown above.

Class A units are available to all investors.Class F units are available to certain investors including those who participate in fee-basedprograms through their financial advisers or who are members of certain groups.Class I units are available to institutional clients and investors who have entered into Class IAccount Agreements with CI Investments Inc. (formerly, CI Mutual Funds Inc.).Insight units are issued to investors of the Insight Program, for use in fee-based accounts.Class X, Class Y or Class Z units were issued to certain investors in connection with variousmutual fund reorganizations and are generally only available for purchase by those investors.

Effective as of close of business on July 29, 2005 the following funds were merged:

Terminated Funds Continuing FundsBPI American Equity RSP Fund CI American Equity Fund

(Formerly BPI American Equity Fund)BPI Global Equity RSP Fund BPI Global Equity FundBPI International Equity Fund CI International Fund BPI International Equity RSP Fund CI International RSP Fund CI American Managers® RSP Fund CI American Managers®

Corporate ClassCI American Small Companies RSP Fund CI American Small Companies FundCI American Value RSP Fund CI American Value Corporate ClassCI Canadian Small Cap Fund CI Canadian Small/Mid Cap Fund CI Asian Dynasty® Fund CI Pacific FundCI Emerging Markets RSP Fund CI Emerging Markets FundCI European RSP Fund CI European FundCI Global RSP Fund CI Global FundCI Global Biotechnology RSP Fund CI Global Biotechnology Corporate ClassCI Global Bond RSP Fund CI Global Bond FundCI Global Boomernomics® RSP Fund CI Global Boomernomics®

Corporate ClassCI Global Consumer Products RSP Fund CI Global Consumer Products

Corporate ClassCI Global Energy RSP Fund CI Global Energy Corporate ClassCI Global Financial Services RSP Fund CI Global Financial Services

Corporate Class

(cont’d)Terminated Funds Continuing FundsCI Global Health Sciences RSP Fund CI Global Health Sciences

Corporate ClassCI Global Managers® RSP Fund CI Global Managers® Corporate Class

CI Global Small Companies RSP Fund CI Global Small Companies Fund

CI Global Science & Technology RSP Fund CI Global Science & Technology

Corporate Class

CI Global Value RSP Fund CI Global Value Fund

CI International Balanced RSP Fund CI International Balanced Fund

CI International Value RSP Fund CI International Value Fund

CI Japanese RSP Fund CI Japanese Corporate Class

CI Pacific RSP Fund CI Pacific Fund

CI Value Trust RSP Fund CI Value Trust Corporate Class

Harbour Foreign Equity RSP Fund Harbour Foreign Equity Corporate Class

Harbour Foreign Growth & Income RSP Fund Harbour Foreign Growth & Income

Corporate Class

CI Global Balanced RSP Portfolio CI Global Balanced Portfolio

CI Global Conservative RSP Portfolio CI Global Conservative Portfolio

CI Global Growth RSP Portfolio CI Global Growth Portfolio

CI Global Maximum Growth RSP Portfolio CI Global Maximum Growth Portfolio

Clarica Premier Bond Fund CI Canadian Bond Fund

Clarica Summit Dividend Growth Fund Signature Select Canadian Fund

Clarica Canadian Blue Chip Fund Signature Select Canadian Fund

Clarica Canadian Diversified Fund Signature Canadian Balanced Fund

Clarica Summit Canadian Equity Fund Harbour Fund

Clarica Summit Growth & Income Fund Harbour Growth & Income Fund

Clarica Summit Foreign Equity Fund Harbour Foreign Equity Corporate Class

Clarica Canadian Equity Fund CI Canadian Investment Fund

Clarica Premier International Fund CI International Value Fund

Clarica US Small Cap Fund CI American Small Companies Fund

Synergy American RSP Fund Synergy American Fund

Synergy Extreme Global Equity RSP Fund Synergy Extreme Global Equity Fund

Synergy Global RSP Fund Synergy Global Corporate Class

Synergy Global Style Management RSP Fund Synergy Global Style Management

Corporate Class

The CI International RSP Fund merged into the CI International Fund effective as of the close

of business on August 2, 2005 in order to accommodate the merger of the BPI International RSP

Fund into the CI International RSP Fund.

Effective as of close of business on November 25, 2005 the following funds were merged:

Terminated Funds Continuing FundsSignature Canadian Income Fund Signature Dividend Fund BPI Global Equity Fund CI Global Fund

The purchase method of accounting has been adopted for the merger of the Funds. Under thismethod, one of the Funds in each merger is identified as the acquiring Fund, and is known as the“Continuing Fund”, and any other Fund involved in the merger is known as the “Terminated Fund”.

The mergers were effected by transferring the net assets of the Terminated Funds in exchange

for securities of the Continuing Funds. The value of the securities of the Continuing Funds

issued in connection with these mergers was equal to the market value of the net assets

transferred from the Terminated Funds.

The Terminated Funds are not included in these financial statements.

Terminated RSP funds were merged as a result of recent legislation eliminating the 30%

foreign content limit.



The Investment Portfolios for each of the Funds are as at March 31, 2006 and the Statements

of Net Assets are as at March 31, 2006 and December 31, 2004 except for CI Global High

Dividend Advantage Fund which is at March 31, 2006 only. The Statements of Operations,

Changes in Net Assets and Schedule of Fund Unit Transactions for each Fund are for the period

from January 1, 2005 to March 31, 2006 and for the year ended December 31, 2004 except for

CI Global High Dividend Advantage Fund where information presented is for the period from

January 20, 2006 to March 31, 2006 only.

2. SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of significant accounting policies of the Funds:

(a) Valuation of InvestmentsListed securities are valued on each business day at their latest available sale price. In theabsence of recorded sales on that day, they are valued at the average of the last recordedbid and ask prices where appropriate. Unlisted securities are valued on each business daybased on price quotations from recognized investment dealers, or failing that, management’sbest estimate of fair value. Short-term fixed income securities are valued at cost which,together with accrued interest, approximates market value. Mutual funds are valued oneach business day at their closing net asset value.

(b) Foreign ExchangeForeign currency amounts are translated into Canadian dollars as follows: market value ofinvestments, forward currency contracts, other assets and liabilities at the closing rate ofexchange on each business day; income, expenses and purchases, sales and settlementsof investments at the rate of exchange prevailing on the respective dates of such transactions.

(c) Investment Transactions and Income RecognitionInvestment transactions are accounted for on the trade date for financial reportingpurposes and any realized gains and losses from such transactions are calculated on anaverage cost basis. Dividend income and distributions from investments are recognized onthe ex-dividend/ex-distribution date and interest income on the accrual basis.

Distributions received from investment trust holdings are recorded as income, capital gainsor a return of capital, based on the best information available to the Manager. Due to thenature of these investments, actual allocations could vary from this information.Distributions from investment trusts that are treated as a return of capital for income taxpurposes reduce the average cost of the underlying investment trust on the Statement ofInvestments.

Distributions received from investment fund holdings are recognized by the funds in thesame form in which they were received from the underlying funds.

(d) Net Asset Value Per UnitNet asset value per unit for each class is calculated at the end of each day on which theToronto Stock Exchange is open for business by dividing the net assets of each class by itsoutstanding units. The net asset value of each class is computed by calculating the valueof that class’s proportionate share of the Fund’s assets less that class’s proportionate shareof the Fund’s common liabilities and less class specific liabilities. Expenses directlyattributable to a class are charged to that class. Other income and expenses are allocatedto each class proportionately based upon the relative net asset value of each class.

(e) Futures, Forward, Option and Swap ContractsFutures, forward, option and swap contracts are marked-to-market on each valuation dayaccording to the gain or loss that would be realized if the contracts were closed out. Allgains or losses arising from futures, forward, option and swap contracts are recorded asunrealized appreciation/depreciation of investments until the contracts are closed out orexpire, at which time the gains (losses) are realized.

(f) Increase (Decrease) in Net Assets from Operations per UnitIncrease (decrease) in net assets from operations per unit in the Statements of Operationsis calculated by dividing the increase (decrease) in net assets from operations of the Fundby the weighted average number of units outstanding during the period.

(g) Use of Estimates

The preparation of financial statements in accordance with Canadian generally accepted

accounting principles requires management to make estimates and assumptions that

affect the reported amounts of assets and liabilities at the reporting date and the reported

amounts of income and expenses during the reporting period. Actual results could differ

from those estimates.

(h) Comparatives

Certain prior period amounts have been reclassified to conform to the current period’s

financial statement presentation.

3. INCOME TAXES

The Funds qualify as mutual fund trusts under the provisions of the Income Tax Act (Canada)

and, accordingly, are not subject to tax on net income, including net realized capital gains for

the taxation year, which is paid or payable to unitholders at the end of the taxation year.

However, such part of each Fund’s taxable income and net realized capital gains that is not so

paid or payable will be taxable to that Fund. Income tax on net realized capital gains not paid

or payable will generally be recoverable by virtue of refunding provisions contained in the Income

Tax Act (Canada) and provincial income tax legislation, as redemptions occur. It is the intention

of each Fund to pay all net taxable income and sufficient net realized capital gains so that the

Fund will not be subject to income tax. Occasionally, a Fund may distribute more than it earns.

This excess distribution is a return of capital and is not taxable to unitholders.

Net capital losses may be carried forward indefinitely to reduce future net realized capital gains.

Non-capital losses may be carried forward ten years. Refer to fund specific schedules in the

financial statements for tax loss carried forward information.

4. MANAGEMENT FEES AND OTHER EXPENSES

CI Investments Inc. is the Manager of each Fund and, in consideration of management fees

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

including management of the investment portfolios of the Funds.

The management fee is calculated on the net assets of each Fund at the end of each business

day and is paid daily.

Prior to September 2005, each Fund was responsible for all operating and administrative

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

expenses relating to reporting and making distributions to unitholders, all other costs and fees

imposed by statute or regulation and expenses of all communications with unitholders.

Effective September 2005, the manager bears all of the operating expenses of the Funds (other

than certain taxes, borrowing costs and new governmental fees) in return for fixed annual

administration fees (the “Administration Fees”).

Each Administration Fee is calculated as a fixed annual percentage of the net asset value of

each class of the Fund at the end of each business day and is paid daily.

Administration Fees (%)CI Mutual Funds CI Alpine Growth Equity Fund 0.20CI American Equity Fund 0.21CI American Small Companies Fund 0.21CI American Value Fund 0.21




(cont’d)

Administration Fees (%)

Fund Names CI Canadian Asset Allocation Fund 0.20CI Canadian Bond Fund 0.17CI Canadian Investment Fund 0.20CI Canadian Small/Mid Cap Fund 0.20CI Emerging Markets Fund 0.22CI European Fund 0.22CI Explorer Fund 0.20CI Global Fund 0.22CI Global Bond Fund 0.18CI Global High Dividend Advantage Fund 0.20CI Global Small Companies Fund 0.22CI Global Value Fund 0.22CI International Balanced Fund 0.22CI International Fund 0.22CI International Value Fund 0.22CI Long-Term Bond Fund 0.17CI Money Market Fund nilCI Mortgage Fund 0.20CI Pacific Fund 0.22CI Short-Term Bond Fund 0.17CI US Money Market Fund nilSelect Staging Fund nil

Harbour Funds Harbour Fund 0.20Harbour Growth & Income Fund 0.20

Signature Funds Signature Canadian Balanced Fund 0.20Signature Canadian Resource Fund 0.20Signature Corporate Bond Fund 0.20Signature Dividend Fund 0.20Signature High Income Fund 0.20Signature Income & Growth Fund 0.20Signature Select Canadian Fund 0.20

Synergy Mutual Funds Synergy American Fund 0.21 Synergy Extreme Canadian Equity Fund 0.20Synergy Extreme Global Equity Fund 0.22Synergy Tactical Asset Allocation Fund 0.22

CI Portfolio Series Funds CI Canadian Balanced Portfolio 0.20CI Canadian Conservative Portfolio 0.20CI Canadian Growth Portfolio 0.20CI Canadian Income Portfolio 0.17CI Canadian Maximum Growth Portfolio 0.20CI Global Balanced Portfolio 0.22CI Global Conservative Portfolio 0.22CI Global Growth Portfolio 0.22CI Global Maximum Growth Portfolio 0.22

Prior to 2003, in order to reduce the effective Management Expense Ratios of certain fundssome of the management fees and/or operating expenses may have been waived by theManager.

5. SECURITIES LENDINGCertain Funds have entered into a securities lending program with their custodian, RBC DexiaInvestor Services Trust ("RBC Dexia"). The aggregate market value of all securities loaned by aFund cannot exceed 50% of the assets of the Fund. A Fund will receive collateral of at least102% of the value of securities on loan. Collateral will generally be comprised of cash andobligations of or guaranteed by the Government of Canada or a province thereof, or by theUnited States government or its agencies, but may include obligations of other governmentswith appropriate credit ratings. RBC Dexia has indemnified the Funds against the credit risk ofthe borrowers. For those Funds participating in the program, amounts for securities loaned, thecollateral received, and the income collected appear on the fund specific schedules in thefinancial statements and income from securities lending is included in "Securities lending" inthe Statements of Operations.

6. REINVESTMENT OF DISTRIBUTIONSWhen a Fund pays a distribution to a unitholder, it will be paid in the same currency in whichthe units are held. Distributions are automatically reinvested without charge in the same Fund.The Manager may change the distribution policy at its discretion. Further information regardingreinvestment of distributions can be found in the Fund’s Simplified Prospectus.

7. RELATED PARTY TRANSACTIONS Sun Life Financial Inc. (“Sun Life”) owns a significant interest in CI Financial Inc., theparent company of the Manager, and is therefore considered a related party to the Funds. Sun Life held investments in the Funds at December 31, 2004, however no longer heldinvestments in the Funds at March 31, 2006.

Fund Names Net Asset Value (000’s)March 31 December 31

2006 $ 2004 $ CI American Value Fund – 7,589 CI Canadian Bond Fund – 17,333 CI Emerging Markets Fund – 8,836 CI European Fund – 3,655 CI Global Bond Fund – 6,405 CI International Value Fund – 2,601 CI Money Market Fund – 530 CI Pacific Fund – 3,612 Signature Corporate Bond Fund – 9,890 Signature Select Canadian Fund – 17,921

8. SUBSEQUENT EVENTCI Investments Inc. announced on May 29, 2006, a proposal to merge CI Explorer Fund into CIAmerican Small Companies Fund, CI Canadian Growth Portfolio into CI Global Balanced Portfolioand CI Canadian Maximum Growth Portfolio into CI Global Maximum Growth Portfolio. Aunitholder meeting will be held on or about July 27, 2006 and if approved, the mergers will takeeffect July 31, 2006.

CI Investments Inc. announced on May 29, 2006, a proposal to change the investment objectivesof Signature Dividend Fund to allow it to invest primarily in dividend-paying common andpreferred shares of Canadian companies, as well to invest in other common shares, fixed-income securities and income trusts, and foreign securities. The Fund currently invests asignificant portion of its portfolio in preferred shares. A unitholder meeting will be held on orabout July 27, 2006 and if approved, the change will take effect July 31, 2006.

CI Investments Inc. announced on May 29, 2006, changing the names of the following mutualfunds:

Current Name New NameSynergy Extreme Canadian Equity Fund Synergy Focus Canadian Equity FundSynergy Extreme Global Equity Fund Synergy Focus Global Equity Fund

These will be effective June 30, 2006.


Management and Audit Reports - CI Mutual Funds

MANAGEMENT’S RESPONSIBILITY

FOR FINANCIAL REPORTING

The accompanying financial statements have been prepared by CI Investments Inc., the Manager

of the Funds, and approved by the Board of Directors of the Manager. The Funds’ Manager is

responsible for the information and representations contained in these financial statements

and other sections of the Annual Report.

CI Investments Inc. maintains appropriate processes to ensure that relevant and reliable financial

information is produced. The financial statements have been prepared in accordance with

accounting principles generally accepted in Canada and include certain amounts that are

based on estimates and judgments. The significant accounting policies which management

believes are appropriate for the Funds are described in Note 2 to the financial statements.

Financial information provided elsewhere in the Annual Report is consistent with that in the

financial statements.

The Board of Directors is responsible for reviewing and approving the financial statements and

overseeing the performance of its financial reporting responsibilities. They also review the

adequacy of internal controls, the audit process and financial reporting with external auditors.

PricewaterhouseCoopers LLP are the external auditors of the Funds. They are appointed by the

unitholders. They have audited the financial statements in accordance with Canadian generally

accepted auditing standards to enable them to express to the unitholders their opinion on the

financial statements. Their report follows.

President

CI INVESTMENTS INC.

Chief Financial Officer

CI INVESTMENTS INC.

AUDITORS’ REPORT

To the unitholders of the CI Mutual Funds listed in Note 1 to the financial statements

(the “Funds”).

We have audited the Investment Portfolios of each of the Funds as at March 31, 2006 and the

Statements of Net Assets, Operations and Changes in Net Assets as at and for the periods

indicated in Note 1. These financial statements are the responsibility of the Funds' management.

Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with Canadian generally accepted auditing standards.

Those standards require that we plan and perform an audit to obtain reasonable assurance

whether the financial statements are free of material misstatement. An audit includes examining,

on a test basis, evidence supporting the amounts and disclosures in the financial statements.

An audit also includes assessing the accounting principles used and significant estimates

made by management, as well as evaluating the overall financial statement presentation.

In our opinion, these financial statements present fairly, in all material respects, the financial

position of each of the Funds, the results of each of their operations and the changes in each

of their net assets as at and for the periods indicated in Note 1 in accordance with Canadian

generally accepted accounting principles.

PRICEWATERHOUSECOOPERS LLP

Chartered Accountants

Toronto, Ontario

May 5, 2006


The CI Funds Board of Governors was voluntarily established by CI in 1998 making it one of the

first such fund governance bodies in Canada.

The Board of Governors acts as an independent governance body of all CI Funds, providing

impartial judgment on conflicts of interest with a view to the best interests of the CI Funds and

CI Funds investors. The Board of Governors recommends the best course of action to achieve

a fair and reasonable result on any conflict of interest issues, and CI takes into account its

recommendation in accordance with its fiduciary duty to the CI Funds. All of the members of

the Board are independent of CI.

The Board of Governors mandate is set out in a separate charter and reviewed annually by

the Board to ensure its mandate conforms to the expectations and requirements of Canadian

securities regulators. Along with dealing with conflicts of interest, the mandate provides that

the Board acts as an audit committee for the CI Funds for the purpose of reviewing the financial

statements of the CI Funds with the auditors of the CI Funds and reviews holdings, purchases

and sales by the CI Funds of securities of Sun Life Financial Inc. and CI Financial Inc.

The Board also reviews and discusses on a regular basis matters including compliance of the

CI Funds with CI’s relevant policies and procedures, approval of the CI Funds’ auditors and the

fees paid to those auditors, and the performance of the Board and its members.

The Board of Governors adheres to the guidelines set out by Canadian securities regulators in

the proposed National Instrument 81-107 Independent Review Committee for Mutual Funds

which will require all mutual funds in Canada to have independent review committees. Should

the regulators’ proposal come into force with a broader or altered set of guidelines for fund

governance, CI Funds and the Board of Governors will adopt the new guidelines.

The Board of Governors are compensated as recommended by the Canadian securities regulators

in their draft rule and as set out in its mandate. These expenses are paid by CI and charged to

the CI Funds as part of their administration fee.

The members of the Board of Governors are:

William Harding, Managing Partner, Alpine Asset Advisors AG

Governor since June 2005

Stuart P. Hensman, Corporate Director

Governor since December 2004

Stephen T. Moore, Managing Director, Newhaven Asset Management Inc.

Governor since September 2001

Sharon M. Ranson, President, The Ranson Group

Governor since December 2004

Further information regarding the Board is available at www.ci.com including the Board’s

full mandate.

About the CI Funds Board of Governors

Your CI Funds Board of Governors is pleased to report on its activities in respect of the period

ended March 31, 2006 and to date. The Governors are appointed pursuant to the Declarations of

Trust governing the CI Funds that are trusts, and constitute the board of directors of CI Corporate

Class Limited.

The Governors have reviewed, commented on and approved the CI Code of Ethics and Conduct,

which establishes rules of conduct designed to ensure fair treatment of the CI Funds’

securityholders and that, at all times, the interests of the CI Funds and their securityholders are

placed above personal interests of employees, officers and directors of the Manager and each

of its subsidiaries and affiliates, the subadvisers, and the Governors, through the application

of the highest standards of integrity and ethical business conduct. The CI Code of Ethics and

Conduct requires the prior clearance of personal trades and restricts the ability of staff to trade

any securities held by the CI Funds. The objective is not only to remove any potential for real

conflict of interest but to avoid any perception of conflict. The Manager's year 2005 report on

compliance with the CI Code of Ethics and Conduct and other relevant policies has been

provided to the Governors in a timely and satisfactory manner.

The Governors report that management has been open and cooperative, permitting the Governors

to meet with subadvisers, to meet with individual department heads and personnel to review

control mechanisms and compliance procedures, including those relating to the personal securities

trading activity of employees, and to consider other matters that affect the CI Funds. During

the period ended March 31, 2006, the Governors also acted as the audit committee of the

CI Funds. The audit committee reviewed, with the CI Funds’ auditors, the planning, scope and

results of the audit of the financial statements of the CI Funds for the period ended March 31,

2006. In June 2006, the Board of Governors received and accepted the Annual Reports of the

CI Funds for the period ended March 31, 2006.

Stephen T. Moore

Chair, CI Funds Board of Governors

June 28, 2006

Letter from the CI Funds Board of Governors


Notice: Should you require additional copies of this Annual Report or have received more than one

copy, please contact CI Investments Inc. (the “Manager”) or your financial advisor.

Commissions, trailing commissions, management fees and expenses all maybe 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. Mutual fund securities are not covered by the Canada Deposit Insurance Corporation or by

any other government deposit insurer.

The commentaries contained herein 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 these commentaries is accurate at the time

of publication. However, the Manager cannot guarantee its accuracy or completeness and accepts no

responsibility for any loss arising from any use of or reliance on the information contained herein.

Simplified Prospectus: The Simplified Prospectus and Annual Information Form of a Fund are renewed

annually. The Manager would be pleased to provide, without charge, the most recent Simplified

Prospectus upon request to its Toronto office.

Distribution or Dividend Reinvestment: Distributions or dividends from the Funds are

automatically reinvested, free of any sales commissions or charges, in additional securities of the

relevant Fund, unless you otherwise direct. You may withdraw from participation in the reinvestment

plan at any time by delivering a written request to your financial advisor or to the Manager.

Redemption of Securities: Securities may be redeemed by securityholders on any business day by

delivering to your financial advisor or the Manager a redemption request in writing, or in such other

form as permitted by your financial advisor. If your redemption request is received by the Manager on

any valuation date prior to 4:00 p.m. (Eastern time), then your securities being redeemed will be

priced at the next valuation time following receipt by the Manager of the redemption request. If the

proceeds of redemption exceed $10,000 or are to be paid to someone other than the registered owner,

your signature must be guaranteed by a bank, trust company, investment dealer, or broker. If certificates

representing the securities to be redeemed have been issued, the redemption request must be

accompanied by the certificates, properly endorsed for redemption with the signature guaranteed in

the manner described above. If the registered owner is a corporation, partnership, agent, fiduciary or

surviving joint owner, additional documentation may be required.

®CI Funds, Synergy Mutual Funds, Boomernomics, Harbour Funds, Global Managers, American

Managers and Insight are registered trademarks of CI Investments Inc. ™CI Investments, the CI Investments design, Portfolio Select Series and Signature Funds are trademarks

of CI Investments Inc.

Legal Notice

– 28 –

Notes


SYN

ERGY

ANN

_07/

06E

Head Office2 Queen Street East, Twentieth FloorToronto, Ontario M5C 3G7Tel: 416-364-1145Toll Free: 1-800-268-9374English Client Services Team: 1-800-563-5181French Client Services Team: 1-800-668-3528

Sales OfficesCalgary Tel: 403-205-4396 Toll Free: 1-800-776-9027Halifax Tel: 902-422-2444 Toll Free: 1-888-246-8887Montreal Tel: 514-875-0090 Toll Free: 1-800-268-1602Vancouver Tel: 604-681-3346 Toll Free: 1-800-665-6994CI Teleservice: 1-800-275-3672 Automated account informationE-mail: [email protected] • www.ci.com

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