CI InternationalBalanced Fund
2002 Annual Report as at December 31
The past three years have been the most challenging on global
markets in 50 years. What makes this more unsettling is that these
conditions follow a decade of unprecedented market growth.
So, for many investors, these markets may be a new experience.
In times like these, it is tough to stay focused on the long term.
However, history tells us that the markets will turn around and
resume their long-term upward trend, reflecting the ongoing
growth of companies and the overall economy.
In spite of the current market conditions, CI has taken steps to
ensure we continue to provide you with the investment options
you need. Here is what CI offers:
• Experience – CI has been providing investment products and
services since 1965. We manage over $30 billion on behalf of
more than 1.4 million Canadians.
• Choice – Whether you’re looking for Canadian or global equity
funds, fixed-income or balanced funds, they are all available
from CI. Our varied investment options include mutual funds,
segregated funds, tax-advantaged funds, RSP-eligible foreign
funds and the CI Portfolio Series.
• Expertise – Our wide range of investment funds is combined
with world-class portfolio managers like Gerry Coleman (named
Fund Manager of the Year at the 2001 Canadian Mutual Fund
Awards and manager of Harbour Fund, named Best Canadian
Equity Fund in 2002), Eric Bushell (manager of Signature
Dividend Fund, which was selected Best Dividend Fund in
2001 and 2002, and of Signature Select Canadian Fund, named
Best Canadian Equity Fund in 2001), and Bill Miller (named
Fund Manager of the Decade for the 1990s by Morningstar).
• Service – CI’s Client Services team can be reached toll-free at
1-800-563-5181 or by e-mail at [email protected]. You can
also access your account through CI’s state-of-the-art website at
www.cifunds.com by clicking on My Account. In addition, our
site has a great deal of information about our funds and about
investing in general.
We know the markets are challenging, but our goals have never
changed – to provide you, through your adviser, with the products
and services you need to meet your financial goals.
Thank you for investing with CI Funds. We realize that it is a
privilege to manage your money. If you have any questions, please
contact your adviser or our Client Services Department.
Yours truly,
Peter W. Anderson
President,
CI Mutual Funds Inc.
February 1, 2003
A Message from the President
P E R F O R M A N C EFund Objective:To obtain maximum long-term totalreturn. It invests primarily in equities, equity-related securities and fixed-income securities of issuers locatedthroughout the world. The fund is notlimited to how much it invests in acountry or asset class or keeps investedin each asset class. This will varyaccording to market conditions.
Lead Manager:William Sterling and Robert Beckwitt
Adviser:CI Global Advisors LLP
Management Style:Top-down analysis of global macro-economic trends; bottom-up research toselect equity and fixed-income holdings.
Fund Assets: $1,140.9 million
NAV per Unit:Class A Cdn $13.84 US $8.80Class F Cdn $7.21 US $4.59Class I Cdn $9.62 N/A
Inception: September 1994
RSP/RIF Eligible: 30%(Also available as 100% RSP)
Distribution: Paid annually
Management Expense Ratio:Class A 2.52%Class F 1.45%Class I 0.03%
Fund Code: CIGFront End DSC
Class A Cdn 630 Cdn 830US 130 US 530
Class F Cdn 128 Cdn –US 528 US –
Class I Cdn 895 Cdn –US – US –
C I I n t e r n a t i o n a l B a l a n c e d F u n d 2 0 0 2 A n n u a l R e p o r t a s a t D e c e m b e r 3 1 , 2 0 0 2
$30,000
$20,000
$10,000
$16,173
Sept. '94 '96 '98 '00 Dec. '02
South Africa 0.3 Utilities 3.0, Consumer Staples 3.0, Materials 2.7, Foreign EquityFutures 2.5, Short Term Investments 0.1
Top 10 Equity Holdings [%]Microsoft Corp.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [United States, Information Technology] . . . . . . . . . . . . . . . . . . . 1.7Citigroup Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [United States, Financials] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.2General Electric Co.. . . . . . . . . . . . . . . . . . . . . . . . . . [United States, Industrials] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.1Pfizer Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [United States, Health Care] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.9Pharmacia Corp.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . [United States, Health Care] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.8ChevronTexaco Corp. . . . . . . . . . . . . . . . . . . . . . . . . [United States, Energy] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.8American International Group Inc. . . . . . . . . . . . . . [United States, Financials] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.7Vodafone Airtouch PLC. . . . . . . . . . . . . . . . . . . . . . . [Britain, Telecommunication Services] . . . . . . . . . . . . . . . . . . . . 0.7Liberty Media Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . [United States, Consumer Discretionary] . . . . . . . . . . . . . . . . . . 0.6Bank of New York Company Inc.. . . . . . . . . . . . . . . [United States, Financials] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.6
U.S.A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47.1Canada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17.2Developed Europe. . . . . . . . . . . . . . . . . . . . . . . . . . . 15.7Japan. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.2Asia Ex Japan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.6Latin America. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.7Emerging Europe . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.7Bermuda . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.4Australia / New Zealand . . . . . . . . . . . . . . . . . . . . . 0.3Cash & Equivalent . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.8
Government Bonds . . . . . . . . . . . . . . . . . . . . . . . . . . 22.9Financials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13.6Consumer Discretionary . . . . . . . . . . . . . . . . . . . . . 12.0Information Technology . . . . . . . . . . . . . . . . . . . . . . 8.9Health Care. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.7Industrials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.9Index Products. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.3Telecommunication Services . . . . . . . . . . . . . . . . . 3.4Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.2Cash & Equivalent . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.8
Country Allocation [%] Sector Allocation [%]
Current Value of $10,000 Investment in Class A units
Class A Class F Class I1 year -13.1 -12.1 -10.43 years -10.0 N/A N/A5 years 0.8 N/A N/ASince Inception 6.0 -12.7 -3.0
Class A Class F Class I2002 $ - $ - $ -
C$ NAV at December 31 each year:
Class A Class F Class I2002 $ x.xx $ x.xx $ x.xx
AT
A G
LAN
CE
H O L D I N G S & A L L O C AT I O N
Total Annual Distribution:Compound Annual Returns [%]
CI International Balanced Fund
Net asset value per unit, beginning of year
Distribution per unit:
From net income
From net realized gain
Net income (loss) per unit
Net realized and unrealized appreciation
(depreciation) of investments per unit
Surplus (deficiency) of capital transactions
over original cost per unit
Net asset value per unit, end of year
Ratios & Supplemental Data
Total return (%) (a)
Average net assets ($000’s) (b)
Management expense information (c)
Management and operating expenses (%)
Goods and services tax expenses (%)
Total management expense ratio (%)
Portfolio turnover rate (d)
Units Issued and Outstanding
Balance beginning of year
Units issued for cash including
re-invested distributions
Units issued on fund merger (Note 1)
Units redeemed
Balance end of year
Additional Fund Notes (in 000’s)
Brokerage Commissions
Net capital loss carried forward
Non-capital loss carried forward (e)
(a) Total return is the historical rate of return of an investment for the year, assuming reinvestment of all distributions at net asset value.(b) Average net assets are calculated based on the daily net assets outstanding.(c) Management expense information is calculated based on total amount of respective expenses and expressed as an annualized percentage of average net assets during the year. (d) Portfolio turnover rate equals the lesser of purchases or sales divided by the average value of the portfolio securities of the fund, excluding short-term securities.(e) Losses will expire within seven years.
Inception dates for all classes, please refer to note 1 in the Notes to the Financial Statements.
Class A Class F Class I
2002 $ 2001 $ 2000 $ 1999 $ 1998 $ 2002 $ 2001 $ 2000 $ 2002 $ 2001 $
15.93 19.29 19.04 16.02 14.00 8.20 9.82 10.00 10.74 10.00
- - - (0.06) (0.13) - - - - -
- - (0.03) (0.09) (0.57) - - (0.01) - -
- - (0.03) (0.15) (0.70) - - (0.01) - -
(0.60) (0.58) (0.28) 0.14 0.20 (0.23) (0.30) (0.09) (0.16) 0.08
(1.44) (2.60) 0.90 5.17 2.53 (0.73) (1.33) (0.08) (0.96) 0.59
(2.04) (3.18) 0.62 5.31 2.73 (0.96) (1.63) (0.17) (1.12) 0.67
(0.05) (0.18) (0.34) (2.14) (0.01) (0.03) 0.01 - - 0.07
13.84 15.93 19.29 19.04 16.02 7.21 8.20 9.82 9.62 10.74
(13.12) (17.4) 1.5 19.8 19.5 (12.07) (16.5) (1.7) (10.43) 7.4
609,264 738,265 1,151,154 618,159 166,548 778,630 994,768 1,070,985 18,816 11,398
2.36 2.36 2.34 2.41 2.42 1.36 1.36 1.34 0.03 0.03
0.16 0.16 0.16 0.17 0.17 0.09 0.09 0.09 - -
2.52 2.52 2.50 2.58 2.59 1.45 1.45 1.43 0.03 0.03
0.85 1.21 1.20 1.12 1.39 0.85 1.21 1.20 0.85 1.21
41,798,669 38,053,668 114,522,177 112,893,310 1,188,482 -
262,068,561 129,124,121 22,604,057 22,875,947 1,737,663 1,199,717
2,209,986 - 1,166 - 929 -
(270,252,918) (125,379,120) (51,388,985) (21,247,080) (166,482) (11,235)
35,824,298 41,798,669 85,738,415 114,522,177 2,760,592 1,188,482
3,589 4,397
140,785
105,497
CI International Balanced FundStatements of Financial Highlights (for the years ended December 31)
C I I n t e r n a t i o n a l B a l a n c e d F u n d 2 0 0 2 A n n u a l R e p o r t a s a t D e c e m b e r 3 1 , 2 0 0 2
The accompanying notes are an integral part of these financial statements.
U.S.A. (40.2%)33,300 Accreado Health Inc. 1,929,317 1,845,608
31,000 Adobe Systems Inc. 1,590,148 1,214,148
18,300 Affiliated Managers Group Inc. 1,396,301 1,447,289
36,300 AGCO Corp. 1,461,809 1,261,348
103,700 Alcoa Inc. 6,055,030 3,714,228
20,200 Ambac Financial Group Inc. 1,670,743 1,786,211
127,600 Amdocs Ltd. 2,682,426 1,970,145
23,900 Amerada Hess Corp. 2,156,121 2,068,670
74,600 American Express Co. 4,734,648 4,146,334
85,732 American International Group Inc. 10,183,294 7,797,985
107,000 AMR Corp. 2,434,326 1,110,360
36,800 Angiotech Pharmaceuticals Inc. 2,209,141 1,970,736
66,400 AOL Time Warner Inc. 4,812,111 1,367,651
24,400 Applera Corp. - Applied Biosystems Group 584,280 672,908
15,200 Arbitron Inc. 736,090 800,616
48,100 Ashland Inc. 2,587,877 2,157,659
33,660 AT&T Corp 3,751,319 1,381,838
233,870 AT&T Wireless Services Inc. 4,405,219 2,077,586
98,700 Autonation Inc. 1,733,887 1,949,139
3,400 Bank of America Corp. 320,531 371,909
185,930 Bank of New York Company Inc. 13,377,627 7,004,423
43,100 Biomet Inc. 1,846,132 1,942,180
54,100 BMC Software Inc. 1,235,738 1,455,403
61,300 Boeing Co. 5,413,868 3,179,647
197,800 Calpine Corp. 1,199,853 1,013,865
18,700 Cardinal Health Inc. 1,829,101 1,740,308
30,200 Career Education Corp. 1,925,678 1,899,341
179,600 Cendant Corp. 3,884,059 2,959,400
10,800 Cephalon Inc. 1,029,052 826,425
30,800 Charles River Laboratories Int'l Inc. 1,888,221 1,863,468
86,300 ChevronTexaco Corp. 10,757,529 9,020,651
83,600 Cisco Systems Inc. 1,382,172 1,721,923
239,859 Citigroup Inc. 16,991,771 13,271,235
78,800 Citrix Systems Inc. 1,130,373 1,526,416
42,700 Clear Channel Communications Inc. 2,151,218 2,503,550
38,000 Coach Inc. 1,952,693 1,966,887
17,200 Cognizant Technology Solutions Corp. 1,889,111 1,953,359
54,453 Comcast Corp. 2,216,594 2,017,983
27,100 Commerce Bancorp Inc. 1,872,356 1,840,300
37,100 ConocoPhillips 2,819,623 2,822,706
125,800 Continental Airlines, Inc. 1,717,473 1,434,018
33,700 Corinthian Colleges Inc 1,948,314 2,006,072
39,900 Costco Wholesale Corp. 1,776,350 1,760,340
48,400 CSX Corp. 2,371,530 2,154,375
162,400 CuraGen Corp. 1,804,569 1,187,340
51,900 CVS Corp. 4,223,863 2,037,614
43,000 Dollar Tree Stores Inc. 1,823,554 1,661,153
19,800 Dominion Resources Inc. 1,490,978 1,709,124
17,400 eBay Inc. 1,847,286 1,855,424
302,800 Edison International 5,484,572 5,641,704
No. of Shares/ Average MarketFace Amount Cost ($) Value ($)
U.S.A. (cont’d)202,100 El Paso Corp. 2,169,209 2,211,626
143,400 EMC Corp./Massachusetts 945,565 1,384,374
65,000 Emulex Corp. 2,055,323 1,895,804
23,600 Entercom Communications Corp. 1,832,137 1,741,029
106,800 Federated Department Stores Inc. 5,531,740 4,829,434
69,200 Federated Investors Inc. 3,078,000 2,760,340
32,800 First Tennessee National Corp. 1,863,948 1,853,480
12,200 Forest Laboratories Inc. 1,765,051 1,884,065
44,820 General Dynamics Corp. 5,093,057 5,593,251
321,560 General Electric Co. 22,244,339 12,311,105
38,600 Gentex Corp. 1,911,465 1,920,259
32,400 Genzyme Corp.-Genl Division 2,066,514 1,506,373
93,000 GlobalSantaFe Corp. 3,592,621 3,556,170
32,520 Goldman Sachs Group Inc. 3,897,767 3,482,040
43,300 Guidant Corp. 2,040,433 2,100,289
24,600 Harley-Davidson Inc. 1,618,169 1,786,953
41,500 Hartford Financial Services Group Inc. 3,050,876 2,964,332
54,200 Heartland Express Inc. 1,915,669 1,952,448
75,000 Hewlett-Packard Co. 1,435,496 2,047,138
6,000 Hindalco Industries Ltd. 101,394 116,508
51,200 Hollywood Entertainment Corp. 1,460,902 1,215,578
229,200 Hughes Electronics Corp. 3,859,849 3,855,977
32,800 IDEC Pharmaceuticals Corp. 2,065,459 1,710,627
38,300 Impath Inc. 839,434 1,187,522
69,690 Intel Corp. 2,147,411 1,706,063
45,500 International Rectifier Corp. 1,181,013 1,320,624
55,200 Investment Technology Group Inc. 1,990,803 1,940,649
52,200 ITT Education 1,829,974 1,932,847
43,800 IVAX Corp. 801,917 835,355
138,500 JC Penney Co. Inc. Holding Co. 4,095,721 5,010,747
359,100 JDS Uniphase Corp. 1,643,988 1,394,596
21,200 Johnson & Johnson 1,835,828 1,790,305
49,500 Jones Apparel Group Inc. 2,532,229 2,758,259
95,800 Kinder Morgan Inc. 6,567,720 6,366,985
81,000 King Pharmaceuticals Inc. 2,275,265 2,189,258
120,460 Kroger Co. 4,480,485 2,926,223
506,708 Liberty Media Corp. 10,999,624 7,122,482
35,800 Lincare Holdings Inc. 1,533,110 1,779,840
38,700 Macrovision Corp. 644,043 976,004
25,000 Marsh & McLennan Co., Inc. 1,834,906 1,816,402
27,800 MBIA Inc. 1,959,887 1,917,121
183,500 Medarex, Inc. 1,534,998 1,139,644
46,800 MedImmune Inc. 2,094,048 1,999,270
54,400 Mellon Financial Corp. 2,799,273 2,233,273
670 Merck & Co., Inc. 50,297 59,635
55,000 Merrill Lynch & Company Inc. 3,535,390 3,281,788
243,240 Microsoft Corp. 20,912,555 19,772,500
35,700 Mid-Atlantic Medical Services Inc. 1,891,866 1,818,651
471,800 Mirant Corp. 1,449,722 1,402,025
57,428 Monsanto Co. 1,975,747 1,738,163
No. of Shares/ Average MarketFace Amount Cost ($) Value ($)
C I I n t e r n a t i o n a l B a l a n c e d F u n d 2 0 0 2 A n n u a l R e p o r t a s a t D e c e m b e r 3 1 , 2 0 0 2
CI International Balanced FundInvestment Portfolio (as at December 31, 2002)
The accompanying notes are an integral part of these financial statements. All common shares unless otherwise noted. Percentages shown in brackets relate investmentsat market value to total net assets of the fund.
U.S.A. (cont’d)55,500 Morgan Stanley 5,504,556 3,483,530
64,100 Navistar International Corp. 2,465,782 2,450,073
68,100 Network Appliance Inc. 1,049,299 1,070,738
31,300 Neuberger Berman Inc. 1,469,238 1,648,145
19,900 Nike Inc. 1,406,710 1,391,414
47,500 Nucor Corp. 3,295,296 3,084,464
134,600 NYFIX, Inc. 849,504 952,344
104,300 Office Depot Inc. 2,077,742 2,420,509
31,020 Omnicom Group Inc. 3,463,995 3,150,724
53,100 Oracle Corp. 801,033 901,684
34,900 Outback Steakhouse Inc. 1,895,776 1,889,838
51,700 Packaging Corp of America 1,581,547 1,482,694
41,200 Pepsi Bottling Group Inc. 1,818,757 1,664,817
27,200 PepsiCo Inc. 1,827,048 1,805,607
47,900 Petsmart Inc. 1,087,857 1,290,117
217,245 Pfizer Inc. 12,073,125 10,441,942
222,900 PG&E Corp. 4,376,071 4,871,480
137,811 Pharmacia Corp. 10,511,506 9,057,247
45,100 Phelps Dodge Corp. 2,198,654 2,244,328
68,100 Philip Morris Company Inc. 4,713,609 4,339,701
28,400 PMI Group Inc. 1,432,015 1,341,388
167,900 Protein Design Labs Inc. 2,522,922 2,243,911
26,600 Pulte Homes Inc. 1,869,445 2,002,079
24,400 QLogic Corp. 1,342,961 1,323,948
2,825,100 Qwest Capital Funding 5.875% 08/03/04 3,767,610 3,731,205
48,400 Raytheon Co. 2,409,859 2,340,058
12,000 Renal Care Group Inc. 591,933 596,972
26,700 Ryonier Inc. 2,244,762 1,899,616
62,000 Safeway Inc. 2,332,305 2,277,197
98,700 Sanmina-Sci Corp 1,485,737 696,786
101,220 SBC Communications Inc. 4,445,598 4,314,514
95,800 Schering-Plough Corp. 2,831,986 3,343,910
70,100 Scientific Atlanta Inc. 1,409,988 1,307,190
49,900 Scios Inc. 2,048,720 2,556,158
2,800 Sepracor Inc. 141,984 42,572
35,500 Serena Software, Inc. 800,591 881,346
72,900 Siebel Systems Inc. 1,858,341 848,194
175,700 Six Flags Inc. 3,686,085 1,577,408
18,300 SLM Corp. 2,001,036 2,988,378
55,900 Smith International Inc. 2,828,854 2,867,027
92,800 Smurfit-Stone Container Corp. 2,186,207 2,245,696
31,400 St. Jude Medical Inc. 1,747,132 1,960,988
37,500 Starwood Hotels & Resorts Worldwide Inc. 1,347,657 1,399,742
50,000 Steris Corp. 1,902,717 1,906,417
106,000 Storage Technology Corp. 2,818,214 3,569,944
81,800 Supervalu Inc. 2,087,816 2,123,423
194,500 Symbol Technologies Inc. 2,567,693 2,513,781
46,000 Talbots Inc. 2,023,365 1,991,132
56,500 Tollgrade Communications Inc. 1,129,842 1,042,036
90,600 Total System Services, Inc. 1,901,901 1,923,083
No. of Shares/ Average MarketFace Amount Cost ($) Value ($)
U.S.A. (cont’d)111,200 Toys R Us Inc. 2,134,839 1,748,400
97,407 Travelers Property Casualty Corp. 2,133,297 2,243,695
162,000 TXU Corp. 3,806,651 4,758,038
466,300 U.S. Treasury 5.875% 11/15/04 784,102 792,161
189,300 Unisys Corp. 3,015,132 2,946,605
17,680 United Technologies Corp. 2,054,442 1,721,827
14,500 UnitedHealth Group Incorporated 1,886,211 1,903,665
1,432,400 US Treasury Bond 6.25% 05/15/30 2,474,058 2,695,122
6,199,900 USA Treasury 4.25% Nts 15/01/10 11,355,979 11,943,127
24,300 Varian Medical Systems Inc. 1,877,929 1,895,065
114,000 Veritas Software Corp. 5,146,979 2,799,767
56,900 Verity Inc. 802,811 1,198,012
48,840 Verizon Communications Inc. 3,651,232 2,975,661
93,600 Vertex Pharmaceuticals Inc. 2,805,298 2,332,605
61,790 Viacom Inc. 3,334,450 3,959,938
26,400 Wachovia Corp. 1,442,516 1,512,580
51,610 Wal-Mart Stores Inc. 3,900,590 4,098,711
109,230 Washington Mutual Inc. 6,102,315 5,930,271
106,700 Waste Management Inc. 4,110,582 3,845,166
21,400 Weatherford International Ltd. 1,123,877 1,343,535
22,150 Wells Fargo & Co. 1,614,532 1,632,318
118,470 Wyeth 6,788,159 6,966,523
518,326,475 458,924,720 CANADA (17.2%)
45,200 Alcan Inc. 2,121,496 2,097,929
81,251,400 Canadian Gov't 5% 09/01/04 84,525,218 83,810,819
6,268,000 Canadian Gov't 5.1796% 12/01/21 8,149,558 8,676,252
21,040,000 Canadian Gov't 5.5% 06/01/09 20,348,484 22,346,584
30,836,500 Canadian Gov't 5.75% 06/01/29 32,418,293 32,517,089
33,425,500 Canadian Gov't 6% 06/01/11 35,221,304 36,367,278
63,300 Canadian National Railway Co. 3,955,579 4,131,591
185,500 Celestica Inc. 4,139,003 4,112,435
55,600 Inco Ltd. 1,275,446 1,855,670
192,154,381 195,915,647 JAPAN (9.0%)
84,800 Aeon Co., Ltd. 3,088,060 3,154,507
39,800 Aiful Corp. 4,780,765 2,349,888
119,000 Bank of Yokohama Ltd. 734,209 738,838
809,400 Bosch Automotive Systems 1,694,376 1,896,556
137,000 Brother Industries Ltd. 1,436,650 1,365,667
207,100 Calconic Corp. 1,648,247 1,598,372
92,900 Canon Inc. 4,555,289 5,497,339
19,700 Don Quijote Company Ltd. 2,704,407 2,840,033
269 East Japan Railway Co. 1,916,942 2,097,475
35,400 Fast Retailing Company Ltd. 3,903,447 1,958,884
259 Fuji Television Network Inc. 2,559,851 1,638,917
335,000 Hitachi Ltd. 2,069,835 2,017,834
104,000 Honda Motor Company Ltd. 5,972,147 6,044,037
10,100 Hoya Corp. 883,939 1,111,096
73,900 Ito-Yokado Company Ltd. 5,714,107 3,424,063
No. of Shares/ Average MarketFace Amount Cost ($) Value ($)
C I I n t e r n a t i o n a l B a l a n c e d F u n d 2 0 0 2 A n n u a l R e p o r t a s a t D e c e m b e r 3 1 , 2 0 0 2
CI International Balanced FundInvestment Portfolio (as at December 31, 2002)
The accompanying notes are an integral part of these financial statements. All common shares unless otherwise noted. Percentages shown in brackets relate investmentsat market value to total net assets of the fund.
JAPAN (cont’d)590,033,000 Japan Govt 10-YR 1.8% 03/22/10 8,167,086 8,490,302
100 JGC Corp. 1,273 879
505,400 Kayaba Industry Co., Ltd. 1,659,917 1,364,881
71,900 Kyorin Pharmaceutical Co. Ltd. 1,640,014 1,666,650
43,400 Maruko Co. Ltd. 682,710 757,242
139,000 Matsushita Electric Industrial Co. Ltd. 2,415,441 2,152,930
257,000 Mitsubishi Estate Co. Ltd. 3,005,374 3,075,607
342 Mitsubishi Tokyo Financial Group Inc. 2,952,496 2,920,217
339,900 Mitsui Fudosan Company Ltd. 3,978,144 3,464,744
1,879 Mizuho Holdings Inc. 8,560,610 2,761,080
600,700 Nikko Cordial Corp. 3,725,137 3,180,877
291,000 Nippon Express Co. Ltd. 1,775,681 1,791,328
200 Nippon Mining Holdings Inc. 1,359 421
284,700 Nissan Motor Company Ltd. 3,028,943 3,490,019
208,800 Nomura Holdings Inc. 5,998,434 3,687,361
50,300 Shin-Etsu Chemical Company Ltd. 2,743,953 2,590,281
86,900 Shiseido Company Ltd. 1,565,965 1,775,068
14,450 Shohkoh Fund 2,034,821 1,645,112
39,000 Sony Corp. 3,126,626 2,560,799
1,151 Sumitomo Mitsui Financial Group Inc. 10,283,064 5,652,994
20,000 Tokyo Electron Ltd. 1,159,409 1,421,784
110,500 Tsumura & Co. 1,573,370 1,579,848
2,414 UFJ Holdings Inc. 6,992,352 3,834,845
34,200 Yamada Denki Co. Ltd. 1,132,912 1,134,131
74,200 Yamanouchi Pharmaceutical Company Ltd. 2,969,747 3,379,027
124,837,109 102,111,933 U.K. (3.8%)
140,100 3I Group 1,877,476 1,969,291
191,400 ARM Holdings PLC 622,287 232,682
214,017 BAE Systems PLC 1,652,195 672,123
313,200 BG Group PLC 1,887,913 2,125,864
178,000 Celltech Group PLC 2,271,340 1,555,314
292,600 Centrica PLC 1,474,706 1,267,212
763,300 Chubb PLC 1,788,147 1,696,373
2,596,800 Colt Telecom 12% 12/15/06 2,652,312 2,735,580
147,800 Compass Group PLC 1,502,134 1,235,285
120,900 Diageo PLC 2,063,041 2,066,850
623,300 Kingfisher PLC 3,548,199 3,512,416
459,100 Misys PLC 2,497,094 2,046,439
104,900 Next PLC 2,198,686 1,956,713
135,200 P&O Princess Cruises PLC 1,483,546 1,475,818
50,750 Royal Bank of Scotland Group PLC 2,296,598 1,912,572
222,700 Scottish & Newcastle PLC 2,573,992 2,614,260
276,100 Serco Group PLC 1,548,997 1,069,884
600,800 Spirent PLC 1,631,269 254,873
73,300 Tesco PLC 344,064 360,151
375,100 United Business Media PLC 2,855,234 2,755,015
627,200 United Kingdom Treasury 8.5% 12/07/05 1,584,920 1,786,259
2,637,651 Vodafone Group PLC 11,873,012 7,565,444
52,227,162 42,866,418
FRANCE (3.7%)54,200 Air France 1,456,916 826,239
247,300 Alcatel SA 2,031,349 1,705,433
44,880 Aventis SA 5,406,843 3,835,454
32,200 Dassault Systemes SA 2,176,733 1,091,165
446,100 France Government Bond 5.5% 04/25/29 665,352 801,630
1,307,600 French Treasury Note 4% 01/12/04 1,866,830 2,186,201
11,675,500 Government of France Index
Linked Bond 3% 07/25/12 16,527,526 20,566,700
6,100 Groupe Danone 1,230,127 1,290,185
40,500 Lagardere S.C.A. 2,643,366 2,586,500
27,800 Peugeot SA 2,223,058 1,782,304
23,800 Sanofi-Synthelabo S.A. 2,473,464 2,287,216
44,200 Suez S.A. 1,234,453 1,206,124
86,400 Vivendi Universal SA 2,224,189 2,193,747
42,160,206 42,358,898 GERMANY (2.0%)
30,000 BASF AG 1,864,584 1,785,756
40,100 Buderus AG 1,525,915 1,455,463
3,257,100 Bundesobligation 4.125% 08/27/04 4,825,970 5,498,267
2,951,100 Bundesobligation 4.5% 08/18/06 4,672,307 5,080,548
22,600 Deutsche Boerse AG 1,278,732 1,422,823
1,990,100 Deutsche Bundesrepublic 5.5% 01/04/31 3,125,720 3,607,678
71,500 Medion AG 3,927,827 3,962,327
21,221,055 22,812,862 NORWAY (1.7%)
51,100 Gjensidige NOR ASA 2,633,434 2,631,439
37,000 Norsk Hydro ASA 2,355,641 2,606,213
94,700 Norske Skogindustrier ASA 2,090,142 2,105,342
7,118,000 Norway(Kingdom Of) 5.75% Bds 11/30/04 1,443,091 1,626,374
5,735,800 Norway(Kingdom Of) 6.75% Bds 01/15/07 1,272,613 1,361,435
102,100 Statoil ASA 1,307,516 1,354,965
191,700 Tandberg ASA 1,980,922 1,739,517
960,200 Telenor ASA 5,650,346 5,772,370
18,733,705 19,197,655 HONG KONG (1.0%)
751,100 Bank Of East Asia, Ltd. 2,290,057 2,021,642
1,223,900 China Mobile (Hong Kong) Ltd. 7,656,382 4,577,361
579,700 China Sthn Airline'h'cny1 209,781 245,441
463,700 Sun Hung Kai Properties Ltd. 5,454,588 4,319,211
15,610,808 11,163,655 NETHERLANDS (0.9%)
150,200 Aegon N.V. 4,043,307 3,038,048
84,970 ING Groep N.V. 2,757,445 2,262,577
63,400 Koninklijke (Royal) Philips Electronics N.V. 1,893,716 1,746,787
89,300 TPG NV 2,374,330 2,276,220
66,200 Vedior N.V. 1,521,084 594,143
12,589,882 9,917,775 SOUTH KOREA (0.8%)
118,200 Hyundai Motor Company Ltd. 3,011,035 4,348,240
24,400 Samsung Electronics, GDR 3,692,645 5,112,027
6,703,680 9,460,267
C I I n t e r n a t i o n a l B a l a n c e d F u n d 2 0 0 2 A n n u a l R e p o r t a s a t D e c e m b e r 3 1 , 2 0 0 2
CI International Balanced FundInvestment Portfolio (as at December 31, 2002)
The accompanying notes are an integral part of these financial statements. All common shares unless otherwise noted. Percentages shown in brackets relate investmentsat market value to total net assets of the fund.
No. of Shares/ Average MarketFace Amount Cost ($) Value ($)
No. of Shares/ Average MarketFace Amount Cost ($) Value ($)
The accompanying notes are an integral part of these financial statements. All common shares unless otherwise noted. Percentages shown in brackets relate investmentsat market value to total net assets of the fund.
SWITZERLAND (0.8%)26,700 Actelion Ltd. 1,447,171 1,853,365
81,700 Credit Suisse Group 2,911,377 2,789,094
10,800 Sulzer Medica AG 2,863,266 2,961,833
19,800 UBS AG 1,493,989 1,514,099
8,715,803 9,118,391 SPAIN (0.8%)
64,500 Altadis SA 2,181,943 2,313,415
2,166,209 Spain(Kingdom Of) 4.5% Bds 07/30/04 3,126,632 3,669,257
884,900 Spanish Govt 5.75% 07/30/32 1,290,557 1,646,057
91,200 Telefonica SA 1,489,046 1,283,447
8,088,178 8,912,176 INDIA (0.7%)
129,800 Bharat Petroleum Corp., Indian
Participating Certificates 797,866 910,397
145,700 Hero Honda Motors Ltd., IPC 1,426,430 1,276,000
192,700 Hindustan Petroleum Corp. 1,417,888 1,763,247
307,600 Housing Dev Fin Corp. 3,248,365 3,612,407
4,644 Infosys Technologies Ltd., ADR 543,614 507,838
7,434,163 8,069,889 SWEDEN (0.6%)
40,830 Atlas Copco AB 1,570,735 1,256,362
28,400 Getinge Industrier 895,620 915,008
85,200 Intrum Justitia 612,870 624,570
9,804,000 Sweden Government Bond 6.75% 05/05/14 1,687,037 2,068,991
150,200 Telefonaktiebolaget LM Ericsson, ADR 2,084,154 1,591,717
6,850,416 6,456,648 RUSSIA (0.6%)
28,900 LUKoil 2,265,413 2,802,711
560,800 Ministry Finance Russia
Unsub 10% 06/26/07 Ser Regs E 867,403 1,004,310
122,100 Unified Energy System 2,010,117 2,472,678
5,142,933 6,279,699 ITALY (0.5%)
157,700 Enel S.p.A. 1,229,884 1,290,469
789,000 IntesaBci S.p.A. 2,029,679 2,616,419
75,500 Luxottica Group S.p.A., ADR 1,728,198 1,620,375
4,987,761 5,527,263 INDONESIA (0.4%)
5,215,200 HM Sampoerna 2,374,885 3,389,891
3,781,500 PT Bank Central Asia Tbk 1,440,928 1,660,799
3,815,813 5,050,690 BERMUDA (0.4%)
39,000 Ace Ltd. 2,057,166 1,799,123
92,000 Marvell Technology Group Ltd. 3,381,674 2,728,133
1,650 Tyco International Ltd. 35,719 44,311
5,474,559 4,571,567 BRAZIL (0.4%)
41,900 Aracruz Celulose S.A., ADR 966,403 1,222,723
48,200 Brasil Telecom Participacoes S.A., ADR 1,989,348 1,913,571
53,300 Cia de Bebidas das Americas 964,639 1,303,986
3,920,390 4,440,280
No. of Shares/ Average MarketFace Amount Cost ($) Value ($)
LUXUMBERG (0.4%)726,400 Salomon Smith Barnptg Cert. 05/01/2004 4,876,731 4,324,639
DENMARK (0.3%)30,900 Danisco A/S 1,551,793 1,652,193
19,200 ISS A/S 1,489,059 1,088,501
3,385,100 Kingdom Of Denmark 5% 11/15/03 713,111 765,761
1,335,300 Kingdom of Denmark 7% 11/10/24 345,425 381,122
4,099,388 3,887,577 SINGAPORE (0.3%)
275,300 Flextronics International Ltd. 4,142,826 3,545,081
TAIWAN (0.3%)1,220,300 Taishin Financial Holdings Co. Ltd,
Equity Linked Note 790,709 998,395
476,800 Taiwan Semiconductor Ltd.,
Taiwan Participating Certificates 1,034,708 923,009
42,282 Taiwan Semiconductor Manufacturing Co. Ltd. 816,990 468,685
214,938 United Microelectronics Corp., ADR 2,395,428 1,135,504
5,037,835 3,525,593 SOUTH AFRICA (0.3%)
116,400 Sappi Ltd. 1,862,904 2,445,055
3,379,000 Sth Africa(Rep Of) 13% 08/31/10 588,969 698,932
2,451,873 3,143,987 AUSTRALIA (0.3%)
1,295,200 New South Wales Treasury 7%, 04/01/2004 1,099,423 1,175,325
45,500 News Corporation Ltd., ADR 1,426,413 1,877,919
2,525,836 3,053,244 MALAYSIA (0.2%)
305,000 Hong Leong Bank Berhad 584,000 567,890
4 Malaysian Large Cap Basket Market
Participation Certificates 1,569,117 1,327,602
585,000 Public Bank BHD 572,080 629,334
2,725,197 2,524,826 THAILAND (0.2%)
2,416,500 Siam Commercial Bank PCL 2,381,058 2,532,686
MEXICO (0.2%)721,700 Telefonos de Mexico SA de CV Ser. L 1,862,408 1,821,917
FINLAND (0.2%)69,000 Nokia Corp., ADR 1,676,487 1,681,577
VENEZUELA (0.2%)86,400 Cia Anonima Nacional Telefonos
de Venezuela - CANTV 1,469,274 1,711,671
AUSTRIA (0.1%)15,300 Erste Bank der oesterreichischen
Sparkassen AG 1,486,797 1,619,281
No. of Shares/ Average MarketFace Amount Cost ($) Value ($)
C I I n t e r n a t i o n a l B a l a n c e d F u n d 2 0 0 2 A n n u a l R e p o r t a s a t D e c e m b e r 3 1 , 2 0 0 2
CI International Balanced FundInvestment Portfolio (as at December 31, 2002)
The accompanying notes are an integral part of these financial statements. All common shares unless otherwise noted. Percentages shown in brackets relate investmentsat market value to total net assets of the fund.
HUNGARY (0.1%)91,775,000 Hungary Gov't 6.25% 06/12/07 518,410 619,718
42,700 OTP Bank Rt. 540,857 660,127
1,059,267 1,279,845 TURKEY (0.1%)
89,601,900 Akbank 579,572 466,775
70,900 Republic Of Turkey 11.875% 01/15/30 106,363 117,050
685,935 583,825 PHILIPPINES (0.1%)
2,760,368 SM Prime Holdings Inc. 547,646 386,169
IRELAND (0.1%)7,743 CRH PLC 155,605 150,739
Total Bonds & Equities (88.9%) 1,096,178,642 1,008,929,090
DERIVATIVE INSTRUMENTS (Capital)
Foreign Currency Forward Contracts(Capital) (0.2%) (see Schedule 1) 1,985,188
Total Investments (Capital) (89.1%) 1,096,178,642 1,010,914,278
DERIVATIVE INSTRUMENTS (Income)
Futures Contracts(Income) (-0.1%) (see Schedule 2) (861,156)
Interest Rate Swap Contracts(Income) (0.1%) (see Schedule 3) 1,159,393
Total Investments (89.1%) 1,011,212,515
Other Assets (net) (10.9%) 129,704,506
Total Net Assets (100.0%) 1,140,917,021
No. of Shares/ Average MarketFace Amount Cost ($) Value ($)
Schedule 1Foreign Currency Forward Contracts (Capital) (0.2%)
Due Credit MarketContracts Pay Receive Date Rating Value $
3 (8,162,137) US$ 14,602,162 Australian$ 20-Mar-03 A-1+ (45,192)*1 (240,750,000) Japanese Yen 3,108,457 Canadian$ 20-Mar-03 A-1+ (98,089)*1 (7,518,186) US$ 11,724,611 Canadian$ 20-Mar-03 A-1+ (132,473)*2 (61,569,244) US$ 60,154,824 Euro 20-Mar-03 A-1+ 2,113,044 * 1 (34,062,373) US$ 21,417,892 British Pound 20-Mar-03 A-1+ 388,872 * 1 (1,846,558) Euro 227,425,776 Japanese Yen 20-Mar-03 A-1+ (16,704)*1 (1,524,032) US$ 1,841,029,700 Korean Wan 20-Mar-03 A-1+ 27,327 *1 (6,209,144) US$ 44,780,344 Norwegian Krone 20-Mar-03 A-1+ 288,910 *1 (6,745,612) US$ 60,073,051 Swedish Krone 20-Mar-03 A-1+ 209,846 *1 (1,430,730) US$ 49,746,474 Taiwanese$ 20-Mar-03 A-1+ 27,173 *1 (1,400,000) Euro 1,432,918 US$ 20-Mar-03 A-1+ (49,177)*1 (2,778,988,441) Japanese Yen 23,004,872 US$ 20-Mar-03 A-1+ (728,349)*
Total Foreign Currency Forward Contracts Value 1,985,188
Schedule 2Futures Contracts (Income) (-0.1%)
Expiry Exercise Market Futures Contracts Date Country Price $ Value $
Hang Seng Stock Index 27 29 Jan 2003 Hong Kong 2,586,375 2,527,746 Tse Topix Stock Index 15 13 Mar 2003 Japan 1,710,235 1,657,091 Korean Kospi 200 Index 35 13 Mar 2003 South Korea 2,108,624 1,844,379 S&P 500 Stock Index 57 20 Mar 2003 USA 20,081,229 19,689,755 Sgx Nikkei 225 Dow Index 27 13 Mar 2003 Japan 1,558,298 1,512,828 Sgx Msci Taiwan Index 58 30 Jan 2003 Taiwan 1,752,599 1,704,405
29,797,360 28,936,204 Exercise Price 29,797,360 Total Futures Contracts Value (861,156)
Schedule 3Interest Rate Swap Contracts (Income) (0.1%)
Due Credit MarketContracts Notional Pay Receive Date Rating Value $
1 10,000,000 1 Month USD LIBOR Bear Stearns U.S.High Yield Index 1-Aug-03 A-1 562,316
1 10,000,000 1 Month USD LIBOR Bear Stearns U.S.High Yield Index 1-Aug-03 A-1 124,280
1 7,500,000 1 Month USD LIBOR Bear Stearns U.S.High Yield Index 1-Sep-03 A-1 90,262
1 1,240,000 1 Month USD LIBOR Lehman U.S.High Yield Index 1-Apr-03 A-1 23,358
1 2,065,000 1 Month USD LIBOR Lehman U.S.High Yield Index 1-Mar-03 A-1 39,846
1 8,660,000 1 Month USD LIBOR Lehman U.S.High Yield Index 1-Aug-03 A-1 168,237
1 2,400,000 1 Month USD LIBOR Lehman U.S.High Yield Index 1-Sep-03 A-1 44,266
1 1,580,000 1 Month USD LIBOR Lehman U.S.High Yield Index 31-Mar-03 A-1 30,798
1 4,000,000 1 Month USD LIBOR Lehman U.S.High Yield Index 30-May-03 A-1 76,030
Total Interest Rate Swap Contracts Value 1,159,393
C I I n t e r n a t i o n a l B a l a n c e d F u n d 2 0 0 2 A n n u a l R e p o r t a s a t D e c e m b e r 3 1 , 2 0 0 2
CI International Balanced FundInvestment Portfolio (as at December 31, 2002)
The accompanying notes are an integral part of these financial statements. All common shares unless otherwise noted. Percentages shown in brackets relate investmentsat market value to total net assets of the fund. *Hedge
C I I n t e r n a t i o n a l B a l a n c e d F u n d 2 0 0 2 A n n u a l R e p o r t a s a t D e c e m b e r 3 1 , 2 0 0 2
CI International Balanced FundFinancial Statements
The accompanying notes are an integral part of these financial statements.
Assets
Investments at market value (Note 2)
Cash
Income taxes recoverable
Daily variation margin
Receivable for unit subscriptions
Receivable for securities sold
Dividends and accrued interest receivable
Liabilities
Payable for securities purchased
Payable for unit redemptions
Distributions payable
Net assets and unitholders’ equity
Net asset value per unit:
Class A
Class F
Class I
Number of units outstanding
Class A
Class F
Class I
Securities Lending (Note 5)
Loaned
Collateral
Income
Approved on behalf of the Board of Directors:
G. Raymond ChangDirector
William T. HollandDirector
Income
Dividends
Interest
Gain (loss) on derivative investments
Less foreign withholding taxes
Expenses
Management fees (Note 4)
Administrative (Note 4)
Custody
Legal
Audit
Goods and services tax
Net income (loss) for the year
Realized and unrealized
gain (loss) on investments
Realized gain (loss) on investments (a)
Change in unrealized appreciation
(depreciation) of investments
Net gain (loss) on investments
Increase (decrease) in net assets
from operations
(a) Realized gain (loss) on investments
Proceeds from sale of investments including
foreign exchange gain (loss) (b) (c)
Investments at cost, beginning of year
Investments purchased
Change in cost of short-term notes held
Investments at cost, end of year
Cost of investments sold
Realized gain (loss) on investments
(b) Proceeds on sales of short-term
notes sold during the year
not included above
(c) Foreign exchange gain (loss)
included above
Statements of Operations for the years ended December 31 (000’s)
2002 $ 2001 $
1,011,213 1,427,101
125,544 156,497
21 21
12,171 25,116
322 2,837
4,532 654
4,327 6,573
1,158,130 1,618,799
16,091 352
1,047 1,378
75 75
17,213 1,805
1,140,917 1,616,994
13.84 15.93
7.21 8.20
9.62 10.74
35,824,298 41,798,669
85,738,415 114,522,177
2,760,592 1,188,482
43,221 281,231
46,230 298,390
434 109
Statements of Net Assets as at December 31 (in 000’s except forper unit amounts and units outstanding)
Net assets, beginning of year
Capital Transactions
Proceeds from units issued
(including reinvested distributions)
Amounts paid for units redeemed
Distributions to investors
Distribution from net realized gains
Distribution from net income
Acquisition of net assets on
fund merger (Note 1)
Increase (decrease) in net assets
from operations
Net assets, end of year
2002 $ 2001 $
1,616,994 1,842,743
4,004,145 2,356,183
(4,325,289) (2,252,182)
(321,144) 104,001
- -
- -
- -
28,857 -
(183,790) (329,750)
1,140,917 1,616,994
Statements of Changes in Net Assets for the years ended December 31 (000’s)
2002 $ 2001 $
14,502 10,775
26,090 38,143
(60,779) (74,412)
(1,409) (1,478)
(21,596) (26,972)
19,938 24,795
4,845 5,688
88 201
27 49
39 39
1,727 2,149
26,664 32,921
(48,260) (59,893)
(56,452) (124,270)
(79,078) (145,587)
(135,530) (269,857)
(183,790) (329,750)
1,269,683 1,610,281
1,431,843 1,084,915
990,471 2,081,479
- -
2,422,314 3,166,394
1,096,179 1,431,843
1,326,135 1,734,551
(56,452) (124,270)
- -
(2,680) -
N o t e s t o t h e F i n a n c i a l S t a t e m e n t s 2 0 0 2 A n n u a l R e p o r t a s a t D e c e m b e r 3 1 , 2 0 0 2
Notes to the Financial Statements
1. THE FUNDS
The following funds are open-ended mutual fund trusts created under the laws
of Ontario by declarations of trust:
Fund Names Dated
CI American Managers RSP Fund July 17, 2000
CI American Small Companies Fund September 9, 1985
CI American Small Companies RSP Fund July 17, 2000
CI American Value RSP Fund July 31, 2001
CI Canadian Bond Fund January 20, 1993
CI Emerging Markets Fund September 10, 1991
CI Emerging Markets RSP Fund February 24, 2000
CI European Fund September 10, 1991
CI European RSP Fund July 31, 2001
CI Explorer Fund September 24, 1987
CI Global Biotechnology RSP Fund February 24, 2000
CI Global Bond Fund August 31, 1992
CI Global Bond RSP Fund August 16, 1993
CI Global Boomernomics® RSP Fund October 29, 1998
CI Global Consumer Products RSP Fund February 24, 2000
CI Global Energy RSP Fund February 24, 2000
CI Global Financial Services RSP Fund August 5, 1999
CI Global Fund February 28, 1986
CI Global Health Sciences RSP Fund August 5, 1999
CI Global Managers RSP Fund February 24, 2000
CI Global RSP Fund August 16, 1993
CI Global Small Companies Fund April 7, 1993
CI Global Small Companies RSP Fund July 17, 2000
CI Global Technology RSP Fund August 5, 1999
CI Global Telecommunications RSP Fund August 5, 1999
CI Global Value Fund June 12, 1996
CI Global Value RSP Fund July 31, 2001
CI International Balanced Fund September 29, 1994
CI International Balanced RSP Fund October 14, 1994
CI International Fund August 5, 1999
CI International RSP Fund February 24, 2000
CI International Value Fund June 12, 1996
CI International Value RSP Fund July 31, 2001
CI Japanese RSP Fund February 24, 2000
CI Money Market Fund October 1, 1990
CI Pacific Fund October 31, 1981
CI Pacific RSP Fund February 24, 2000
CI US Money Market Fund January 30, 1995
CI Value Trust RSP Fund December 31, 2001
Sometimes referred to herein individually as “Fund”, and collectively as
the “Funds”.
CI Mutual Funds Inc. is the manager of each Fund.
Class A units were offered to investors on the date of the formation of the Funds.
Class F units were offered to investors commencing on July 17, 2000, except for
the following funds of which Class F units were offered to investors commencing
on July 31, 2001.
Fund Names
CI Global Energy RSP Fund
CI Money Market Fund
CI European Fund
CI International Value Fund
CI Global Bond RSP Fund
Class I units were offered to investors for the following Funds.
Fund Names Dated
CI American Small Companies Fund July 31, 2001
CI Canadian Bond Fund July 31, 2001
CI Emerging Markets Fund July 31, 2001
CI Global Fund July 31, 2001
CI Global RSP Fund July 31, 2001
CI Global Bond Fund July 31, 2001
CI Global Boomernomics RSP Fund July 31, 2001
CI Global Small Companies Fund July 31, 2001
CI Global Value Fund July 31, 2001
CI International Balanced Fund July 31, 2001
CI International Balanced RSP Fund July 31, 2001
CI International Value Fund July 31, 2001
CI Money Market Fund July 31, 2001
CI Pacific Fund July 31, 2001
CI Pacific RSP Fund July 31, 2001
CI Value Trust RSP Fund December 31, 2001
Class A units are available to all investors.
Class F units are available to certain investors including those who participate
in fee-based programs 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 I Account Agreement with CI Mutual Fund Inc.
N o t e s t o t h e F i n a n c i a l S t a t e m e n t s 2 0 0 2 A n n u a l R e p o r t a s a t D e c e m b e r 3 1 , 2 0 0 2
Notes to the Financial Statements
Effective as of the close of business on October 11, 2002 the following funds
were merged.
Non-taxable Mergers
Terminated Funds Continuing Funds
Spectrum RRSP Global Growth Fund CI Global Small Companies
RSP Fund
Spectrum RRSP World
Growth Managers Fund CI Global Managers RSP
Spectrum Global Bond Fund CI Global Bond Fund
Spectrum Canadian Money Market Fund CI Money Market Fund
Spectrum Savings Fund CI Money Market Fund
Spectrum U.S. Dollar Money Market Fund CI US Money Market Fund
CI Latin American RSP Fund CI Emerging Markets RSP Fund
Spectrum RRSP Global Financial CI Global Financial Services
Services Fund RSP Fund
Spectrum RRSP Global Health CI Global Health Sciences
Sciences Fund RSP Fund
Spectrum RRSP Global CI Global Telecommunications
Telecommunications Fund RSP Fund
CI Global Business-to-Business (B2B) CI Global Technology RSP Fund
RSP Fund
CI Global Focus Value Fund CI Global Value Fund
Taxable Mergers
Terminated Funds Continuing Funds
Spectrum Global Growth Fund CI Global Small Companies Fund
Spectrum Global Diversified Fund CI International Balanced Fund
Spectrum Emerging Markets Fund CI Emerging Markets Fund
CI Latin American Fund CI Emerging Markets Fund
The mergers were effected by transferring the net assets of the terminated funds
in exchange for units of the continuing funds. The value of the units 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.
With respect to the non-taxable mergers, each of the terminated and continuing
funds were deemed to have a taxation year end as at October 11, 2002. In
accordance with the Income Tax Act, all unrealized losses and certain unrealized
gains of those funds’ investment portfolios were deemed to be realized at
October 11, 2002. All tax losses available to those funds as at October 11, 2002
expired on that date.
These financial statements do not include the operating results of the terminated
funds prior to the merger date.
The Investment Portfolios for each of the Funds are as at December 31, 2002
and the Statements of Net Assets are as at December 31, 2002 and 2001, if the
Fund was in existence at that time. The Statements of Operations and Changes
in Net Assets for each Fund are for the years ended December 31, 2002 and
2001, except for Funds established during either period, in which case the
information provided is for the period from inception to December 31. The
Statements of Financial Highlights for each Fund are for each of the most
recent five years ended December 31, except where the inception date of a
Fund, or date of first sale of a Class of a Fund, was after January 1, 1998, in
which case the information is provided for the period from inception or date of
first sale, as applicable, to December 31 of that period, if applicable, and for
each year ended December 31 thereafter. The date of inception of each Fund
is shown above.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies of the Funds:
(a) Valuation of Investments
Listed securities are valued on each business day at their latest available sale
price. In the absence of recorded sales on that day, they are valued at the
average of the last recorded bid and ask prices where appropriate. Unlisted
securities are valued on each business day based on price quotations from
recognized investment dealers, or failing that, management’s best estimate.
Short-term fixed income securities are valued at cost which, together with
accrued interest, approximates market value. Mutual Funds are valued on
each business day at their closing net asset value.
(b) Foreign Exchange
Foreign currency amounts are translated into Canadian dollars as follows:
market value of investments, forward currency contracts, other assets and
liabilities at the closing rate of exchange on each business day; income,
expenses and, purchases, sales and settlements of investments at the rate
of exchange prevailing on the respective dates of such transactions.
(c) Investment Transactions and Income Recognition
Investment transactions are accounted for on trade date and any realized
gains and losses from such transactions are calculated on an average cost
basis. Dividend income is recognized on the ex-dividend date and interest
income on the accrual basis. Stock dividends are recorded as dividend
income determined by reference to market value.
(d) Net Asset Value Per Unit
Net asset value per unit for each class is calculated at the end of each day
on which the Fund’s manager is open for business by dividing the net
assets of each class by its outstanding units.
The net asset value of each class is computed by calculating the value of
that class’s proportionate share of the Fund’s assets less that class’s
proportionate share of the Fund’s common liabilities and less class specific
liabilities. Expenses directly attributable to a class are charged to that class.
Other income and expenses are allocated to each class proportionately
based upon the relative net asset value of each class.
(e) Futures, Forward and Option Contracts
Futures, forward and option contracts are valued on each business day
according to the gain or loss that would be realized if the contracts were
closed out, unless daily limits are in effect in which case they are valued
based on the current market value of the underlying interest. Any payments
made to satisfy initial and variation margin are reflected as a receivable
balance in daily variation margin on the Statement of Net Assets. Margin
consisting of assets other than cash is noted in the Statement of Investment
Portfolio. Gains or losses arising from futures, forward and option contracts
which are held as hedges for capital investments are recorded as unrealized
gains (losses) on investments until the contracts are closed or expire. Gains
or losses arising from futures, forward and option contracts not held as
hedges for capital investments are recorded as income (loss) on a daily basis.
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 be
generally 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. Derivative investments are
recorded in the same manner for tax purposes as for accounting purposes.
Net capital losses may be carried forward indefinitely to reduce future net realized
capital gains. Net capital loss amounts appear under “Additional Fund Notes” on
the Statements of Financial Highlights.
4. MANAGEMENT FEES AND OTHER EXPENSES
CI Mutual Funds 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
portfolio 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.
Each Fund also bears 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.
To encourage large purchases in the Funds, the manager may reduce the
management fee that it would otherwise be entitled to receive from a Fund
with respect to an investment in a Fund provided that the amount of the
management fee reduction is distributed to the investor for whose benefit the
fees were reduced.
5. SECURITIES LENDING
Certain Funds have entered into a securities lending program with their custo-
dian, Royal Trust Company of Canada ("Royal Trust"). The aggregate market
value of all securities loaned by a Fund cannot exceed 50% of the assets of the
Fund. A Fund will receive collateral of at least 102% of the value of securities
on loan. Collateral will generally be comprised of cash and obligations of or
guaranteed by the Government of Canada or a province thereof, or by the
United States government or its agencies, but may include obligations of other
governments with appropriate credit ratings. Royal Trust has indemnified the
Funds against the credit risk of the borrowers. For those Funds participating in
the program, amounts for securities loaned, the collateral received, and the
income collected appear on the Statement of Net Assets and income from secu-
rities lending is included in "Interest Income" in the Statement of Operations.
6 . RELATED PARTY TRANSACTIONS
Sun Life Financial Services of Canada Inc. (“Sun Life”) owns a significant
interest in CI Mutual Funds Inc. and is therefore considered a related party to the
Funds. The following is a summary of the investments by Sun Life in the Funds
at December 31, 2002.
Fund Names Net Asset Value (ooo’s)
CI Global Bond Fund (Class F) 7,433
CI Global Financial Services RSP Fund (Class A) 411
CI Global Financial Services RSP Fund (Class F) 404
CI Global Health Services RSP Fund (Class A) 354
CI Global Health Services RSP Fund (Class F) 348
7 . PORTFOLIO TRANSACTIONS
A copy of the Statement of Portfolio Transactions (unaudited) for any Fund
for the year ended December 31, 2002 is available without charge upon written
request to the manager, CI Mutual Funds Inc., CI Place, 151 Yonge Street,
Eleventh Floor, Toronto, Ontario M5C 2W7.
N o t e s t o t h e F i n a n c i a l S t a t e m e n t s 2 0 0 2 A n n u a l R e p o r t a s a t D e c e m b e r 3 1 , 2 0 0 2
Notes to the Financial Statements
MANAGEMENT’S RESPONSIBILITY
FOR FINANCIAL REPORTING
The accompanying financial statements have been prepared by CI Mutual
Funds Inc., the manager of the Fund, and approved by the Board of
Directors of the manager. The Fund’s manager is responsible for the
information and representations contained in these financial statements
and other sections of the Annual Report.
CI Mutual Funds 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 Fund are described in Note 2
to the financial statements.
PricewaterhouseCoopers LLP are the external auditors of the Fund,
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 is set out at the right.
President Chief Financial Officer
CI MUTUAL FUNDS INC. CI MUTUAL FUNDS INC.
AUDITORS’ REPORT
To the unitholders of the CI Funds listed in note 1 to the financial statements
(the "Funds")
We have audited the Investment Portfolios of each of the Funds as at
December 31, 2002 and the Statements of Net Assets, Operations, Changes
in Net Assets and Financial Highlights 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, the changes in each of their net assets and each of their
financial highlights as at and for the periods indicated in note 1 in
accordance with generally accepted accounting principles.
Toronto, Ontario PRICEWATERHOUSECOOPERS LLP
January 31, 2003 Chartered Accountants
M a n a g e m e n t a n d A u d i t R e p o r t s 2 0 0 2 A n n u a l R e p o r t a s a t D e c e m b e r 3 1 , 2 0 0 2
Management and Audit Reports
NOTICE: Should you require additional copies of this Annual Report or havereceived more than one copy, please contact CI Mutual Funds Inc. (the“Manager”) or your financial adviser.
Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus beforeinvesting. 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 perform-ance data assume reinvestment of all distributions or dividends and do not takeinto account sales, redemption, distribution or optional charges or income taxespayable by any securityholder that would have reduced returns. Mutual fundsare not guaranteed, their values change frequently and past performance maynot be repeated. Mutual fund securities are not covered by the Canada DepositInsurance 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 anoffer or solicitation to buy or sell securities. Every effort has been made toensure that the material contained in these commentaries is accurate at thetime of publication. However, the Manager cannot guarantee its accuracy orcompleteness and accepts no responsibility for any loss arising from any use ofor reliance on the information contained herein.
SIMPLIFIED PROSPECTUS: The Simplified Prospectus and AnnualInformation Form of a Fund are renewed annually. The Manager would bepleased to provide, without charge, the most recent Simplified Prospectus uponrequest 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, unlessyou otherwise direct. You may withdraw from participation in the reinvestmentplan at any time by delivering a written request to your financial adviser or tothe Manager.
REDEMPTION OF SECURITIES: Securities may be redeemed by security-holders on any business day by delivering to your financial adviser or the Managera redemption request in writing, or in such other form as permitted by yourfinancial adviser. If your redemption request is received by the Manager on anyValuation Date prior to 4:00 p.m. (Eastern time), then your securities beingredeemed will be priced at the next valuation time following receipt by theManager 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, orbroker. If certificates representing the securities to be redeemed have beenissued, the redemption request must be accompanied by the certificates, properly endorsed for redemption with the signature guaranteed in the mannerdescribed above. If the registered owner is a corporation, partnership, agent,fiduciary or surviving joint owner, additional documentation may be required.
®Boomernomics, Harbour Funds, CI Funds, the CI Funds logo design, BPIFunds, CI Sector Funds and Global Managers are registered trade marks of CI Mutual Funds Inc. ™Landmark Funds, Signature Funds and AmericanManagers are trademarks of CI Mutual Funds Inc.
Board of Governors’ Letter
Legal Notice
Your CI Funds’ Board of Governors is pleased to report on its activities inrespect of the year ended December 31, 2002. The Governors are appointedpursuant to the Declarations of Trust governing the Funds that are trusts, andconstitute the board of directors of CI Sector Fund Limited.
The Governors’ mandate is to consult with CI Mutual Funds Inc. (the “Manager”) and any investment advisers (referred to as “Subadvisers”) in matters pertaining to investment policy; receive and review periodic reports concerning the investment of the Funds’ assets, the issue and redemption of securities and distributions to securityholders; and to review and advise or consent, if appropriate, with respect to any other matter required by theDeclarations of Trust and by applicable securities laws, regulations and rules. The Governors met quarterly.
The Governors have reviewed, commented on and approved the CI Code ofEthics and Conduct, which establishes rules of conduct designed to ensure fairtreatment of the Funds’ securityholders and that, at all times, the interests of thethe 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 ofthe highest standards of integrity and ethical business conduct. The objectiveis not only to remove any potential for real conflict of interest but to avoid any perception of conflict.
The independent Governors report that management has been open and cooperative, permitting the Governors to meet with Subadvisers, to meet withindividual department heads and personnel to review control mechanisms andcompliance procedures, including those relating to the personal securities
trading activity of employees, and to consider other matters that affect theFunds, such as customer complaints. The personal trading rules under the CI Code of Ethics and Conduct require prior clearance of personal trades andrestrict the ability of staff to trade any securities held by the Funds. The three independent Governors comprise the Audit Committee of the Boardof Governors. The Audit Committee independently reviewed, with the Fund’s auditors, the planning, scope and results of the audit of the financial statementsof the Funds for the year 2002, and reported to the Board of Governors. The Board of Governors has received and accepted the 2002 Annual Reports of the Funds.
The Manager's year 2002 report on compliance with the CI Code of Ethics andConduct has been provided to the Governors in a timely and satisfactory manner.
Stephen T. MooreCHAIR, CI FUNDS BOARD OF GOVERNORS
March 6, 2003
Members of the Board of GovernorsStephen T. Moore, ChairJasmine HerltThomas L. JarmaiPeter W. Anderson, President, CI Mutual Funds Inc. (commencing February 2003)
Head OfficeCI Place, 151 Yonge Street, Eleventh FloorToronto, Ontario M5C 2W7Tel: 416-364-1145Toll Free: 1-800-268-9374Client Services Team: 1-888-771-2999
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