Capital growth with downside protection

Cambridge team

Brandon SnowPrincipal & Portfolio Manager

Alan RadloChief Investment Officer & Portfolio Manager

Emi WintererAnalyst

Stephen GroffAnalyst

Greg DeanAnalyst

Robert SwansonPrincipal & Portfolio Manager

Importance of downside protection

STARTING $ % DECLINERETURN REQUIRED TO GET

BACK TO EVEN

$ 100 -1% 1.1%

$ 100 -15% 18%

$ 100 -25% 33%

$ 100 -50% 100%

Big losses make growing capital much more difficult

Importance of downside protection

STARTING $

% DECLINE YEAR 2 RETURN TOTAL

$ 100 -1% 10% 8.9%

$ 100 -15% 20% 2%

$ 100 -25% 33% 0%

$ 100 -50% 100% 0%

Protecting capital should lead to better compound returns

Philosophy

Long-term holdings

Management aligned with shareholders

Strong capital allocation

Competitive advantage

Examples:• CN Rail• Enghouse• Couche-Tard

Short-term investments

Information edge

An industry where we have experience

Path to value recognition

Examples:• F5 Networks• Petroleum Geo-Services ASA• Eagle Materials

Attractive risk/reward

Our sell discipline

Short-term investments

Reaches fair value

Thesis was wrong

Long-term holdings

Valuation becomes excessive

Thesis changes

We find better opportunities

Long-term holding example – Couche Tard

Need 20 yr chart for ATD/B CN Equity

Short-term investment – Eagle Materials

Downside protection in a difficult year

Source: PaltrakAs of April 30, 2012

  YTD 2011 3 Year Inception

Cambridge Canadian Asset Allocation * 3.7% -0.7% 11.9% 3.3%

Quartile 2 1 1 n/a

Cambridge Canadian Equity* 7.8% -1.3% 13.3% 2.9%

Quartile 1 1 1 n/a

Cambridge Global Equity* 14.4% -12.0% 10.4% 2.0%

Quartile 1 4 1 n/a

Castlerock Canadian Growth A** 16.8% n/a n/a 17.9%

Quartile 1 n/a n/a n/a

Castlerock Pure Canadian Equity** 11.9% n/a n/a 10.5%

Quartile 1 n/a n/a n/a

Why invest with Cambridge? Results

Source: CI Investment Consulting

Market outlook

Today’s issues

The negatives

• European debt resolution and austerity measures

• Slowing growth in China and developing markets

• U.S. – headwinds from deleveraging and fiscal restraint

• Canada: personal debt levels and home prices

Today’s issues

The positives

• Current European policymakers more market friendly than predecessors

• U.S. – economic indicators improving; housing bottoming; unemployment topping

Key takeaways

• Global growth slowing, but still positive• Increasingly confident of European resolution• Low interest rates and improving earnings make

North American equities attractive• Systematic risk still warrants a conservative

approach– Large, stable dividend paying stocks– Short to intermediate investment & non-investment

grade bonds– Diverse set of income instruments

• Preferreds• Convertible Bonds• Infrastructure• Selected REITs

The case for equities

Source: Stifel Nicolaus

Dividends on high-quality companies exceed yields on high-quality bonds

Source: Deutsche Bank, Bloomberg

Why invest with Cambridge?

Why invest with Cambridge?

• Flexibility – we aren’t the index– Nimble asset base– Open mandates

• Conviction in what we own– We talk to management often– Site tours

• Aligned with fundholders– Focus on absolute returns

The importance of flexibility

As at March 30, 2012

SP/TSX - Current

20%

31%

The importance of flexibility

SP/TSX Dec 31, 1999 SP/TSX - Current

31%

20%

Cambridge doesn’t replicate the benchmark

Sector

Cambridge

Canadian

Equity CC S&P/TSX Difference

Cambridge Canadian

Asset Allocation

CC

60 S&PTSX/

40 DEX

Universe Difference

Cash 14   14 5   5

Bonds -   - 16 40 -24

Financials 16 31 -15 23 19 4

Energy 14 26 -12 16 16 -

Materials 3 20 -17 6 12 -6

Consumer

Discretionary 6 4 2 4 3 1

Consumer

Staples 12 3 9 7 2 5

Information

Technology 13 1 12 9 1 8

Telecomm

Services - 5 -5 1 3 -2

Industrials 14 6 8 6 2 4

Health Care 5 2 3 3 1 2

Utilities 3 2 1 4 1 3

Source: Paltrak, March 30, 2012

Cambridge doesn’t replicate the benchmark

Castlerock Growth Companies

Top holdings as at April 30, 2012

Alimentation Couche-Tard 4.8%

Trilogy Energy Corp 4.1%

Brick Brewing Co. 3.9%

Bauer Performance Sports 3.3%

Shoppers Drug Mart 3.2%

Brookfield Asset Management 3.1%

Enghouse Systems Ltd 2.6%

Stewart Info Svcs 2.5%

ATS Automation Tooling System 2.5%

Boyd Group Income Fund 2.2%

Total 32.2%

Cambridge Canadian Equity

Top holdings as at April 30, 2012

Alimentation Couche-Tard 6.7%

Shoppers Drug Mart 4.5%

Tourmaline Oil Corp. 4.5%

Metro Inc 3.7%

Brookfield Infrastructure LP 3.2%

Keyera Corp. 3.0%

Progressive Waste Solutions 3.0%

Trilogy Energy Corp. 2.9%

Brookfield Asset Management 2.8%

MI Development 2.6%

Total 36.9%

Source: CI Investments

New fund

Cambridge Income Fund

Cambridge Income Fund

Cambridge Income Fund provides investors with what

they are looking for – a stable source of tax-efficient

income that will keep them ahead of inflation. Similar

to all Cambridge funds, it has low volatility and

downside protection built in.

Cambridge Income Fund

• Combination of global fixed income and high-yielding equities

• Diversified across regions, sectors and capital structure

• Focus on income stability, with potential for capital appreciation and inflation protection

Bonds are guaranteeing capital losses for clients

CompanyDividend

YieldBond Price at Dividend Yield

Required Capital Loss

Bristol-Myers 4.1% 110.2 -9.3%

Unilever 3.7% 110.4 -9.4%

Pfizer 3.8% 113.0 -11.5%

JNJ 3.8% 110.9 -9.8%

Merck 4.3% 114.1 -12.4%  (as at April 27th) (4 to 6 year bond) Compound annual return

Stocks vs. bonds: the Metro story

$700

$800

$900

$1,000

$1,100

$1,200

$1,300

$1,400

$1,500

$1,600

2011 2012E 2013E 2014E 2015E 2016E

Cumulative Interest

Bond Price

To

tal v

alu

e (

$)

$700

$800

$900

$1,000

$1,100

$1,200

$1,300

$1,400

$1,500

$1,600

2011 2012E 2013E 2014E 2015E 2016E

Cumulative Dividend

Buyback Impact

Organic Growth

Base Business

Scenario #1: The bond story:2.4% annual gross return*

Scenario #2: The stock story:11.9% annual gross return*

*$1,000 investment a five-year BBB Metro bond trading at 112% above parInitial coupon payment: 5.0%Annual capital appreciation: -2.2%

*Assumes a constant P/E multiple and dividend payout ratio4.0% organic growth4.0% share buyback2.5% dividend yield on principal

Representative portfolio structure

Fund target yield: 4.0%

Investment grade 5.0%

Converts 6.0%

High-yield bonds 7.5%

REITS 5.0%

Preferred 6.6%

High-yield equity 4.9%

Infrastructure 4.5%

Utilities 5.0%

Yields

Cambridge Income Fund

Manager: Robert Swanson

Available in: Class A, E, F and OCorporate Class, T-Class, E, O and US$

Management fees: Class A – 1.90%; Class F – 0.90%

Trailer: 1.00% FE; 0.50% DSC

Tax-effective monthlydistribution: $0.03 (annual targeted yield 4.0%)

Mutual Fund: FEL – CIG 635 Corporate Class: FEL – CIG 2261 DSC – CIG 885 DSC – CIG 3261

Low Load – CIG 1235 Low Load – CIG 1261

Right team, right philosophy, right experience

Experienced investment teamFocused on capital growth with downside protection

With the flexibility to deliver in volatile markets

“If everything is coming your way, you’re probably in the wrong lane.” – Warren Buffett

Fund Fund CodeAssets

(million)Foreign Content

Cambridge Canadian Equity Corporate Class CIG2321 $867.5 maximum 49%

Cambridge Canadian Asset Allocation Corporate Class CIG2322 $831.9 maximum 49%

Cambridge Global Equity Corporate Class CIG2323 $638.7 no restrictions

Cambridge Income Corporate Class CIG2261 $26.4 no restrictions

Cambridge Income Fund CIG635 $42.0 no restrictions

Cambridge American Equity Corporate Class* CIG294 $220.0 no restrictions

Cambridge American Equity Fund* CIG 212 $51.7 no restrictions

Castlerock Canadian Growth Companies Fund HIC191 $13.3 maximum 49%

Castlerock Pure Canadian Fund HIC192 $2.0 maximum 10%

Cambridge multi-asset class, multi-manager

* Effective June 5, 2011 Cambridge assumed management of the funds and they were renamed from CI American Equity Corporate Class and CI American Equity Fund.

Source: RBC Dexia at April 30, 2012

All charts and illustrations in this guide are for illustrative purposes only. They are not intended to predict or project investment results.

®CI Investments, CI Investments design and Cambridge are registered trademarks of CI Investments Inc. Cambridge Advisors is the business name of CI Global Holdings 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.

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