Portfolio Series Income Fund - CI Investments

Portfolio Series Income Fund
Portfolio Review – Second Quarter 2014
Q2

Portfolio Series Income Fund
Portfolio Review – Second Quarter 2014 as at June 30, 2014
Market Overview
Global growth continued through the second quarter of 2014,
helping most capital markets to post positive results. Central
banks in developed countries maintained their cautious
tone, keeping monetary policy highly accommodative to
growth. This allowed government and corporate bond prices
to move higher, and the FTSE TMX Canada Universe Bond
Index, a measure of Canadian government and investmentgrade
corporate bonds, added 2% for the three-month
period. Canada’s economy experienced a gradual rise
in exports, stable employment and increasing inflation.
Reflecting higher resource prices and confidence in the
economic outlook, the Canadian dollar strengthened relative
to its U.S. counterpart. Elsewhere, economic data from the
U.S. showed continued improvement in employment and
manufacturing, while China’s economy showed signs of
stabilizing. Overseas, the European Central Bank, concerned
about low growth and falling inflation, shaved its benchmark
interest rate and left the door open to further stimulus in
support of the region’s economy.
Equity markets, meanwhile, recovered from weakness
earlier in the year related to the conflicts in Ukraine and
Iraq to continue their rally. Canadian equities as measured
by the S&P/TSX Composite Index reached a new high in
mid-June, and added 6.4% for the second quarter. The
Canadian market was among the world’s best-performing
in the first half of 2014, gaining about 13%. Canadian
stocks were lifted by higher prices for natural resources,
especially energy, and by strong results among banks and
other financial services companies.
In the U.S., the S&P 500 Index also reached a record high in
the second quarter, posting a healthy 5.2% increase (1.6%
in Canadian dollar terms). Overseas, most stock markets
in Europe and Asia also advanced in local currency terms.
Japan’s Nikkei Index, which fell in the first quarter on
concern that new taxes would cool the economy, generated
a 2% return. The MSCI World Index rose about 5%, or 1.5%
in Canadian dollars.
Underlying Fund Allocations
Signature Canadian Bond Fund 13.1%
Signature Global Bond Fund 13.0%
Cash 10.4%
Signature Corporate Bond Fund 9.6%
CI Global High Dividend Advantage
Corporate Class 9.4%
Signature Diversified Yield II Fund 8.8%
Cambridge Income Corporate Class 7.3%
Cambridge Global Dividend Fund 6.3%
Signature Income & Growth Fund 5.6%
Signature High Income Fund 4.7%
Signature Global Dividend Corporate Class 4.2%
Lawrence Park Strategic Income Fund 4.1%
Signature Dividend Corporate Class 3.5%
Bond Information
Portfolio yield (approx.)
Duration in years
Top Ten Holdings
3.1% ▼
3.4 ▼
U.S. Treasury Note 1.625% 15Nov22 1.2%
U.S. Treasury Note 3.125% 15May21 1.0%
U.S. Treasury Note 1.25% 30Nov18 0.8%
Province of Ontario 4.2% 02Jun20 0.7%
Roche 0.6%
Novartis 0.5%
Canada Gov’t 1.25% 01Sep18 0.5%
Canada Gov’t 5.00% 01Jun37 0.5%
Toronto-Dominion Bank 0.5%
Canada Gov’t 1.5% 01Feb17 0.4%

Portfolio Series Income Fund
Portfolio Review – Second Quarter 2014 as at June 30, 2014
Portfolio Performance (Class A units)
1 Month 3 Months 6 Months 1 Year 3 Years 5 Years 10 Years
Since Inception
(December 1997)
-0.1% 1.1% 4.8% 10.1% 6.9% 8.3% 5.6% 5.4%
Asset Allocation Overview and Activity
Different types of investments will respond differently to the markets, reinforcing the importance of a multi-level diversification
strategy. A balanced asset mix ensures that investors are not dependent on any one asset class or security type to provide returns.
This report is designed to provide you with an up-to-date portfolio overview of the Portfolio Series Income Fund, including the
allocations across asset class, geographic region, equity sector and market capitalization. The arrows indicate whether the
allocation for each category has increased or decreased since the previous quarter-end.
Asset Class
Geographic Regions
38%
34%
16%
12%
— ▲
— ▼
— ■
— ■
REITs, trusts & equities
Government & Investment-grade bonds
Cash
High-yield bonds
30.0%
26.8%
24.2%
6.2%
3.6%
2.3%
2.1%
1.8%
1.6%
1.3%
— ▼
— ▲
— ▼
— ▼
— ▲
— ▲
— ■
— ▼
— ▼
— ▲
Canada
U.S.
Cash & Other countries
U.K.
France
Switzerland
Australia
Germany
Emerging markets
Japan
Equity Market Cap
▲
Equity Industry Sector
▼
■
82.9%
10.4%
38 %
6.7%
34 %
16 %
12 %
— ▲
— ■
— ▼
—
—
Large-cap
Mid-cap
Small-cap
▲
▼
27.8% — ▼
13.5% — ▲
11.5% — ▲
30,0 9.9% % —
▼
26,8 8.6% % —
▼
24,2 8.6% % —
▼
6,2 8.3% % —
▲
3,6 4.9% % —
▼
2,3 3.6% % —
▼
2,1 3.3% % —
■
0.0% —
1,8 %
▼
1,6 % —
1,3 % —
Financial services
Energy
Industrials
Consumer staples
Health care
Utilities
Telecommunication services
Consumer discretionary
Information technology
Materials
Other

Portfolio Series Income Fund
Portfolio Review – Second Quarter 2014 as at June 30, 2014
Portfolio Commentary
The portfolio gained 1.1% during the quarter,
underperforming its benchmark (15% S&P/TSX Composite
Index, 75% FTSE TMX Canada Universe Bond Index, 10%
MSCI World Index, C$), which rose 2.6%. Our allocations to
dividend-paying equities and high-yield bonds contributed
to performance. Weakening of foreign currencies in the
portfolio’s global bond portion and underweight exposure
to government bonds detracted from returns.
During the quarter, global equities rose, aided by central
bank stimulus and improvements in the economies of major
markets. Bond markets also gained amid growing political
tensions and continuing low interest rates. The European
Central Bank cut its key lending rate to provide some lift
to the Eurozone’s tepid economic recovery. Canadian
stocks outperformed other major equity markets again this
quarter, in large part due to the S&P/TSX Composite Index’s
significant weighting in the financials sector and strength
in energy prices. Canadian banks reported better-thanexpected
earnings, as the housing market remained strong.
The Canadian dollar rallied during the quarter, fuelled by
firmer oil prices and indications of rising inflation.
In the portfolio’s income portion, Signature Canadian
Bond Fund added value, benefiting from its exposure
to government bonds. Signature Global Bond Fund
underperformed due to the weakness of foreign currencies.
A large portion of the portfolio’s foreign currency exposure
is strategically hedged back to the Canadian dollar,
dampening volatility from currency movements. However,
depending on the level of exchange rates, we will adjust
exposure to foreign currencies to benefit from changing
market valuations.
We are continuing to favour corporate bonds and global
bonds and currencies, while maintaining an underweight
allocation to Canadian government bonds. Having a
diversified and flexible framework allows us to take
advantage of changes in valuations in the market and
continue providing steady income returns with low
volatility. We expect to achieve modest growth and inflation
protection through our allocation to high-quality dividendpaying
equities.
In the equity portion, Signature Dividend Corporate Class,
with its focus on high-quality dividend-paying companies,
made the biggest contribution to performance.
Alfred Lam, CFA, Vice-President and Portfolio Manager
Yoonjai Shin, CFA, Director
Marchello Holditch, CFA, Senior Analyst
Lewis Harkes, CFA, Senior Analyst
Andrew Ashworth, Analyst
We continued to maintain a large cash position to reduce
volatility and to provide the flexibility to invest. A portion of
the cash allocation was shifted into U.S. dollars because
we believe investing in U.S. dollars can provide an offset
to equity risk.
The portfolio’s interest rate risk is reduced through exposure
to corporate bonds with shorter durations and higher yields,
as well as to alternative sources of income such as highyielding
equities that have lower sensitivity to interest rate
movements.

Portfolio Series
Portfolio Review – Second Quarter 2014 as at June 30, 2014
Portfolio Management Teams
Altrinsic Global Advisors, LLC follows a fundamental value approach in which the team seeks out high-quality
undervalued companies worldwide. Founded by John Hock and associates, Altrinsic is based in Greenwich,
Connecticut.
Black Creek Investment Management Inc. is led by award-winning money managers Bill Kanko and Richard
Jenkins. Black Creek pursues an equity mandate with no restrictions on finding the best businesses in the
world. They are driven by identifying proprietary ideas and global businesses that will do well for investors
over the long term.
Cambridge Global Asset Management is led by Chief Investment Officers Alan Radlo and Brandon Snow. and
chief market strategist Robert Swanson. Cambridge is a division of CI Investments and has offices in Boston
and Toronto.
CI Investment Consulting is the portfolio management team responsible for over $25 billion of assets in CI’s
managed solutions and oversight of all CI funds. Led by Portfolio Manager Alfred Lam, the team’s mandate is
centred on asset allocation, manager oversight and selection, and risk management.
Epoch Investment Partners, Inc. is a New York-based investment management firm founded by Wall Street
veteran William Priest and associates. Epoch uses a value-based approach that focuses on companies with
superior shareholder yield.
Harbour Advisors, a division of CI Investments, is led by Portfolio Managers Stephen Jenkins and Roger
Mortimer. Harbour’s approach entails buying high-quality businesses at a sensible price, and following a
patient, long-term outlook.
Marret Asset Management Inc. focuses on fixed-income investing and alternative strategies on behalf of
institutional, high net worth and retail clients. The firm is led by Chief Investment Officer Barry Allan.
Signature Global Asset Management is a team of 38 investment professionals led by Chief Investment Officer Eric
Bushell, who was named Morningstar Fund Manager of the Decade in 2010.
Lawrence Park Capital Partners Ltd. is a Toronto-based independent investment management firm dedicated to
creating alternative fixed income and credit products. The Lawrence Park team, led by Andrew Torres, offers a
unique approach to fixed-income investing aimed at enhancing yield and reducing volatility.
Picton Mahoney Asset Management is led by David Picton and Michael Mahoney and uses quantitative analysis
as the foundation of its approach.
Tetrem Capital Management, led by Chief Investment Officer Daniel Bubis, is based in Winnipeg and has an
office in Boston. Tetrem uses a disciplined approach to invest in undervalued Canadian and U.S. companies.

For more information on Portfolio Series, please contact
your CI Sales Representative or visit www.ci.com/portfolioseries.
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information contained herein.
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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 and there can be no assurances that the CI Money Market Funds will maintain its net asset value per security at a constant amount
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All Rights Reserved. Published July 2014.
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