ci global high dividend advantage fund

CI Global High DividendAdvantage Fund

Epoch Investment Partners, Inc.

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Highlights A Case for Global Shareholder Yield Portfolio Characteristics

Table of Contents

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Actively Managed Portfolio

Exposure to Global Portfolio focused on “Shareholder Yield” comprised of:

High Dividend Paying Securities

MLPs / REITs

Equities

Diversified by company, geography and industry

Proven investment strategy: Epoch Investment Partners

Highlights

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Attractive, tax efficient monthly distributions 6% annual initial target distribution

Approx. 8.5% pre-tax interest equivalent

Forward structure recharacterizes income into tax-efficient capital gains, return of capital

Benefits of traditional Closed End funds without their drawbacks

Highlights

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Details

Price: $10 per unit

Minimum investment: $500

Target Yield: 6% (8.5% pre-tax equivalent)

Commission

ISC DSC LL MLL

Class A 0-5% 5.00% 2.00% 3.00%

Service Fees

ISC DSC LL MLL

Class A 1.00% 0.50% 0.50% first 3 yrs1.00% thereafter

0.40% first 4 yrs1.00% thereafter

Fund Name

Fund Code

Class A Class F Class I

ISC DSC LL MLL ISC ISC

CI Global High Dividend Advantage Fund 2810 3810 1610 6976 4810 5810

CI Global High Dividend Advantage Fund US$ 2811 3811 1611 6977 4811 N/A

A Case for Global Shareholder Yield

Epoch Investment Partners, Inc.

William W. Priest, CFA, CPAChief Executive Officer/Chief Investment Officer

Michael A. Welhoelter, CFAManaging Director, Portfolio Manager

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Financial Economy & Real Economy Are Linked – Role of Inflation and Interest Rates

Changing Order Within Sources of Return Leads to Rising Importance of Yield

Globalization Turbo-Charges Global Real Growth and Enhances Free Cash Flow Growth Rates

Importance of Free Cash Flow Metric for Capital Allocation Options

Dividends and Shareholder Yield

Summary Case for Shareholder Yield

Backdrop

Financial Economy and

Real Economy are Linked

- Role of Inflation and

Interest Rates

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Real and Financial Economy: Directly Connected

Real GDP

Inflation

StockMarket Level

P/E Ratio

EPSNominal GDP

+

=

Real Economy Financial Economy

x

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“3.11- A Rate, Not A Date” – Bill Priest

“Following almost 20 years of expanding P/E ratios,

interest rates are poised to rise, thereby eliminating

P/E ratios as the major driver of total equity returns

as was the case over the 1980-2000 period.”*

* See Bill Priest’s Paper “3.11- A Rate, Not a Date”

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P/E’s Are Inversely Related to Interest Rates

Sources of Equity Returns: P/E’s, Earnings, & Dividends

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

50.0

192

6

193

0

193

4

193

8

194

2

194

6

195

0

195

4

195

8

196

2

196

6

197

0

197

4

197

8

198

2

198

6

199

0

199

4

199

8

200

2 0.0

1.5

3.0

4.5

6.0

7.5

9.0

10.5

12.0

13.5

15.0

Trailing P/E Ratio

Long Term GovernmentBond Interest Rate

Inte

rest R

ates (%

) on

10-year G

ov’t S

ecurities

P/E

rat

ios

at y

ear

end

Source: Epoch Investment Partners/Standard & Poors

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Nominal GDP and Earnings: Long-term History

4.00

5.00

6.00

7.00

8.00

9.00

10.00

1929 1934 1939 1944 1949 1954 1959 1964 1969 1974 1979 1984 1989 1994 1999 2004

No

min

al G

DP

, L

N(G

DP

)

-1.00

0.00

1.00

2.00

3.00

4.00

5.00

S&

P 5

00 E

PS

, L

N(E

PS

)

Ln Nominal GDP

Ln S&P 500 Earnings Per Share



Changing Order Within the

Sources of Return Leads to

Rising Importance of Yield

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1. P/E’s

2. Earnings

3. Dividends

Sources of Equity Returns

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Components of Compound Annual Total Returns for Trailing 10-year

Periods(S&P 500 Composite 1926-2004)

-10%

-5%

0%

5%

10%

15%

20%

19

361

937

19

381

939

19

401

941

19

421

943

19

441

945

19

461

947

19

481

949

19

501

951

19

521

953

19

541

955

19

561

957

19

581

959

19

601

961

19

621

963

19

641

965

19

661

967

19

681

969

19

701

971

19

721

973

19

741

975

19

761

977

19

781

979

19

801

981

19

821

983

19

841

985

19

861

987

19

881

989

19

901

991

19

921

993

19

941

995

19

961

997

19

981

999

20

002

001

20

022

003

20

04

Ending Date of 10-year Period

Combined EffectsP/E ExpansionEarnings GrowthDividends & ReinvestmentTotal Return



Globalization Turbo-Charges

Real Growth and Enhances

Free Cash Flow Growth

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Turbo-Charging Real Economic Growth Through:

Globalization and its Instrument –

The Law of Comparative Advantage

“Volume of tradable goods has doubled in the past five years”

Emergence of new trading paradigms has led to:

- Stephen Roach Economist, Morgan Stanley

Productivity Profitability Inflation

Importance of Free Cash Flow Metric

for Capital Allocation Options

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From an investor’s perspective, “Free cash flow is the cash available for distribution to investors after all planned capital investment and taxes.”*

“But, accountants define the cash flow of a company as the sum of net income plus depreciation and other non-cash items that are subtracted in computing net income.”* - too inadequate for financial decisions

Free cash flow is emerging as dominant capital allocation driver and hence, that of equity returns as well

Rise in Private Capital Firms emphasizing role of free cash flow exclusively

Importance of Free Cash Flow Analysis for Capital Application Options

*Valuations for Mergers, Buyouts, and Restructuring , Enrique R. Arzac

“The New Kings of Capitalism”Economist

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Free Cash Flow Options

Acquisitions

Reinvestment in Business

Firm Growth

Shareholder Yield

Dividends

Share repurchase

Debt reduction

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Shareholder Yield is a better measure of a firm’s ability to deliver income to investors

Application of free cash flow model clarifies components

Traditional dividend measures fail to capture all shareholder yield contributions

Buybacks and debt reduction are now viewed as important use of cash


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0

20

40

60

80

100

120

140

160

180

200

74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05

Dividend Yield will be re-defined as Shareholder Yield with ascendancy of free cash flow metric

Shareholder Yield will rise sharply as corporations more efficiently use their capital

Source: Corporate Reports, Empirical Research Partners Analysis.

1 Largest 1,500 stocks; data smoothed on a trailing one-year basis. Excluding Microsoft's special dividend in 12/2004.

Dividends as a Share of Free Cash Flow 1

1974 Through November 2005

Current

Dividend Yield to become Shareholder Yield

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Shareholder Yield positively affected by

emerging compensation policies

Shareholder Yield

Restricted Stock Units

Summary Case for

Shareholder Yield

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Interest rates will stay flat or rise for the foreseeable future.

P/E ratios will stay flat or fall.

To the extent that equities deliver positive returns, such positive returns will, out of necessity, be driven by dividends and earnings (the other two contributing sources of total return).

Both dividends and earnings are “real” phenomena as opposed to “pricing multipliers”.

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Assume overall economy (nominal terms) grows 6%. Assume current dividend yield is 2%. The return to equities will be 8%.

If interest rates rise, P/E ratios will fall. Under such a scenario, equity returns will be less than 8%.

To the extent that equities deliver positive returns, such positive returns will, out of necessity, be driven by dividends and earnings.

A clear opportunity exists by focusing on the sources of real returns.

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Through the use of a financial metric (free cash flow) rather than an accounting metric (earnings) it is easier to discern those firms most likely to utilize their free cash flow intelligently for shareholder value creation.

If the return on incremental capital to be deployed in the business is equal to or less than the present average return on capital, the capital should be returned to shareholders.

By assembling a portfolio of companies that offer superior dividend levels (direct dividends, share repurchases, debt reductions) and operating earnings growth we will be able to deliver performance superior to that of the broad-based equity market.

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Portfolio Characteristics

Core Portfolio Process

Current Portfolio Allocation

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Core Portfolio Process: Fund Competitive Positioning

Exceptional, robust, current yield > 5%Exceeds long bondsRoughly 300 bps greater than global equity indices

Consistent dividend growth 3% compound annual growth last three years85% of companies raised their dividend in the last 12 months

Global participation and diversification

Innovative Portfolio Construction Stock-specific performance and income risks reduced Simultaneously allocating portfolio weight, income, and dividend growth

Special Dividend Capture Program

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Core Portfolio Process: Epoch’s Proprietary Income Screen

Income Security and GrowthCurrent yield > 4% 3+ years of monotonically increasing dividends

Cash from operations exceeds dividends (or cash returned) over trailing three years

Want ample dividend coverage and to avoid liquidating income vehicles

No dividend cancellations in available financial history up to 20 years Dividend is “sacred”

Low incidence of dividend reduction in available history

Company has increased dividend in more than 50% of available history

Positive growth in cash flow from operations over the last 5 years

Liquidity:Market Capitalization > $250 million U.S.For lightly traded stocks, prospective position is less than one-day of trading volume

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Take candidate stocks ( n ~ 150)

Use quadratic optimizer to maximize the probability of achieving the following portfolio goals:

1. Conventional Dividend Yield >= 5%

2. Recent Dividend Growth = 10% (Expected Incremental Yield = 0.50%)

3. R-squared of security dividend streams > 0.9 for two-thirds of holdings

4. Seek additional 1.5% of shareholder yield through expected share repurchases and debt reduction

Position Constraints:

Maximum assets per security = 2.5%

Maximum income contribution per security = 3%

Maximum incremental income per security = 5%

Minimum position = 0.50%

Core Portfolio Process: Portfolio Construction

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Economic Sectors

0%

5%

10%

15%

20%

25%

30%

cons

umer

disc

retio

nary

cons

umer

stap

les

ener

gy

finan

cials

healt

h ca

re

indus

trials

infor

mat

ion te

chno

logy

mat

erial

s

telec

om se

rvice

s

utilit

ies

portfolio weight Citigroup BMI World weight

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Geographic Diversification

0%

10%

20%

30%

40%

50%

60%

U.S.

Japa

nU.K

.

Franc

e

Canad

a

Germ

any

Switzer

land

Austra

liaIta

ly

Spain

South

Kor

ea

Nethe

rland

s

Sweden

Hong

Kong

Finlan

d

Belgium

Singap

ore

Other

s

Portfolio Citigroup BMI World

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Minimum Purchase: $500 / Each subsequent investment minimum: $50.

RSP Eligibility: 100% eligible for RRSPs, RRIFs, RESPs.

Distributions: Paid monthly. Automatically reinvested with the option to receive in cash.

Selling Concession: 5.00% upfront plus 0.50% per annum trailer.

Liquidity: Daily liquidity.

Summary details

Class A (DSC): 7-year declining schedule

Class A (LL): 3-year declining schedule

Class A (MLL): 4-year declining schedule

Short-term trading fee may apply if units are sold within 30 business of purchase.

Class A (DSC): 10% free units, annually

Class A (LL): Not Available

Class A (MLL): Not Available

DSC Withdrawal Privileges:Redemption Fees:

Switches: Clients can switch units of one class of the fund to another class of the fund or to another fund managed by CI subject to any applicable fees. See the Prospectus for more details.

Commission

ISC DSC LL MLL

Class A 0-5% 5.00% 2.00% 3.00%

Service Fees

ISC DSC LL MLL

Class A 1.00% 0.50% 0.50% first 3 yrs1.00% thereafter

0.40% first 4 yrs1.00% thereafter

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Disclaimer

Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. ™CI Investments and CI Investments design are trademarks of CI Investments Inc.

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ci global high dividend advantage fund

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