Transamerica CI Growth Portfolio - CI Investments

Transamerica CI Growth PortfolioPortfolio Review – Fourth Quarter 2012 as at December 31, 2012Portfolio Managers’ Economic OverviewIn the income sector, investors continued to favour higheryieldingsecurities in the fourth quarter of 2012, spurredby low interest rates and ongoing fiscal concerns in theU.S. and Europe. The emphasis for this period was oninvestment-grade and high-yield corporate bonds, whereprices continued to rise. Government bond prices in theU.S. and Canada, meanwhile, moderated slightly. Canadianincome trusts and real estate investment trusts had strongresults for the period.The Canadian and U.S. equity markets finished the quarterin positive territory, despite defensive investor sentiment formuch of the quarter. Canada’s S&P/TSX Composite Indexadded 1.7% for the quarter and 7.2% for all of 2012. U.S.stocks, as measured by the S&P 500 Index, rose 0.8% inthe quarter and 13.5% for 2012 in Canadian dollar terms,capping a strong yet choppy year. Stock prices initiallyweakened in the fourth quarter on softer corporate earningsreports and concerns about the ability of politicians to finda compromise to the U.S. “fiscal cliff” of tax increases andbudget cuts. The U.S. Federal Reserve’s continued monetaryeasing programs and data indicating a nascent recovery inthe housing market, however, helped to support equity pricesinto year-end.Overseas markets posted mainly positive returns in the fourthquarter. The advances came despite recession in Europe andsluggish growth in many other parts of the world. The MSCIWorld Index gained 3.8% for the quarter in Canadian dollars.Results were particularly robust for several European markets.Germany’s DAX Index, for example, gained 5.5% in localcurrency terms as investors benefited from lower interestrates and greater confidence that the Eurozone would remainintact. Markets in Asia were also strong, with Hong Kong’sHang Seng Index benefiting from more stable growth inChina. In Japan, where the central bank took steps to devaluethe yen, the Nikkei Index climbed 17.2% for the quarter inlocal currency terms.Underlying Fund AllocationsAegon Capital Management Canadian Bond Pool 13.4%Cambridge Canadian Equity Corporate Class 8.1%Signature Select Canadian Corporate Class 8.0%CI International Value Corporate Class 7.0%Signature International Corporate Class 6.1%CI American Value Corporate Class 6.0%CI American Managers Corporate Class 5.5%Cambridge Global Equity Corporate Class 5.0%CI Canadian Investment Corporate Class 5.0%Signature High Yield Bond Corporate Class 5.0%Synergy Canadian Corporate Class 5.0%Cambridge American Equity Corporate Class 4.5%Signature Emerging Markets Corporate Class 4.2%CI Can-Am Small Cap Corporate Class 4.1%Harbour Corporate Class 4.0%Harbour Voyageur Corporate Class 4.0%CI American Small Companies Fund 3.1%Synergy American Corporate Class 2.0%Top Ten HoldingsCanada Gov’t 2.75% 01Jun22 1.9%Toronto-Dominion Bank 1.2%Canadian Imperial Bank of Commerce 0.8%Canadian National Railway Company 0.8%Suncor Energy Inc. 0.7%Alimentation Couche-Tard 0.7%Canadian Natural Resources Ltd. 0.7%Canada Gov’t 4% 01Jun41 0.7%Apple Inc. 0.7%Bank of Nova Scotia 0.6%

Transamerica CI Growth PortfolioPortfolio Review – Fourth Quarter 2012 as at December 31, 2012Portfolio Performance1 Month 3 MonthsSince Inception(September 21, 2012)1.6% 3.2% 2.5%Asset Allocation Overview and ActivityDifferent types of investments will respond differently to the markets, reinforcing the importance of a multi-level diversificationstrategy. 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 Transamerica CI Growth Portfolio, including theallocations across asset class, geographic region, equity sector and market capitalization.Asset ClassGeographic Regions32.7%23.2%14.3%11.4%5.5%4.5%4.1%3.1%1.2%— U.S. equity— Canadian equity— Canadian bond— European equity— Cash— Emerging markets equity— Asian equity— Foreign bond— Other equity37.5%35.0%11.4%4.6%2.8%2.4%2.3%1.9%1.1%0.9%0 5 10 15 20 25 30 35— Canada— U.S.— Cash & Others— Emerging markets— U.K.— Switzerland— Japan— Germany— France— Netherlands0 5Equity Market Cap75.1% — Large cap20.2% — Mid-cap4.7% — Small cap32,7 % — Actions américaines23,2 % — Actions canadiennes14,3 % — Obligations canadiennes11,4 % — Actions européennes5,5 % — Trésorerie4,5 % — Actions de marchés émergents4,1 % — Actions asiatiques3,1 % — Obligations étrangères1,2 % — Autres actionsEquity Industry Sector▲▼■20.4%— Financial services12.7% — Energy11.7% — Information technology37,5 11.5% %35,0 10.1% %11,4 10.0% %4,69.6%%— Industrials Canada— Consumer États-Unis discretionary— Health Trésorerie care et autres— ConsumerMarchés émergentsstaples8.7% — Materials2,8 %Royaume-Uni2.4% — Utilities2,4 %Suisse2.1% — Telecommunications2,3 %Japon0.8% — Other0 10 20 30 40 50 60 70 80 1,9 % — Allemagne▲1,1 %0,9 %— France— Pays-Bas▼0

Transamerica CI Growth PortfolioPortfolio Review – Fourth Quarter 2012 as at December 31, 2012Portfolio CommentaryThe portfolio gained 3.2% during the quarter, outperformingits benchmark (30% S&P/TSX Composite Index, 20% DEXUniverse Bond Index, 50% MSCI World Index, C$), whichrose 2.4%.Strong equity performance contributed to returns, aidedby our diversified income strategy, which was focused oninvestment-grade and high-yield corporate bonds.During the quarter, the major stimulus measures announcedin September by European and U.S. central bankers continuedto boost investor confidence, leading to strength in equities,mostly outside North America. U.S. equities were held backdue to the country’s so-called fiscal cliff concerns, but stillmanaged to eke out a positive return for the quarter. The U.S.market finished the year with a double-digit return, far outpacingthe Canadian market’s gain, which was limited by weakness inthe resource sector. Global real estate and high-yield bondsparticipated in the fourth quarter market rally. The U.S. dollarstrengthened, while the Japanese yen declined dramatically inresponse to expectations that Japan’s new leader would adopta pro-growth monetary policy. Government bonds were outof favour as lenders expressed their preference for corporatebonds that are backed by superior credit fundamentals andoffer higher yields.In the portfolio’s income portion, exposure to high-yieldbonds through Signature High Yield Bond CorporateClass contributed the most to performance. Aegon CapitalManagement Canadian Bond Pool outperformed itsbenchmark, but contributed the least due to its investmentgradebond holdings, which did not gain as much as highyieldbonds. The government bond position detracted fromperformance.In the income portion, we have been emphasizing investmentgradeand high-yield corporate bonds, while maintainingunderweight allocations to Canadian government bonds,which offer little to no yield after inflation. Having a diversifiedand flexible framework allows us to benefit from changesin valuations in the market and continue providing steadyincome with low volatility.Our Canadian and U.S. equity funds outperformed theirrespective indexes. The international equity funds had strongabsolute performance, although they lagged the internationalequity market, which was led by Japan and continental Europe.The sector allocation of the portfolio’s equity portion ismore diversified than that of the Canadian economy andthe S&P/TSX Composite Index, which has over 75% of itsvalue concentrated in three sectors: energy, materials andfinancials. We continue to focus on company fundamentalsand valuations to add value and avoid undue concentration inany one sector. From a regional perspective, we continued tohave an overweight allocation to the U.S. and an underweightposition in Canada, while maintaining a neutral weighting ininternational equities. U.S. equities are supported by a diverseeconomy, with large exposure to global markets and strongrepresentation in all major industrial sectors, making it amore attractive asset class than Canadian equities on a riskadjustedbasis.In Canadian equities, Cambridge Canadian Equity CorporateClass was the biggest contributor to performance, significantlyoutpacing its benchmark due to stock selection in the energysector and its underweight position in materials. Overall, theCanadian equity component had overweight allocations toinformation technology, health care, consumer staples andconsumer discretionary sectors, and underweight positionsin energy, materials and financials. This positioning addedvalue.Among the U.S. equity funds, CI American Small CompaniesCorporate Class was the biggest contributor, outpacing boththe large-cap and small-cap indexes due to stock selectionin the consumer staples and consumer discretionary sectors.The U.S. equity component is tilted toward sectors that aretied to economic growth, such as the industrials sector, withunderweight positions in defensive sectors such as consumerstaples and utilities.In the international equity portion, CI International ValueCorporate Class had the smallest gains, lagging its highperformingbenchmark due to a generally defensive strategy.This fund’s overweight allocation to consumer staples and

Transamerica CI Growth PortfolioPortfolio Review – Fourth Quarter 2012 as at December 31, 2012underweight position in consumer discretionary contributedto underperformance. Overall, our international equityportion had underweight positions in industrials, consumerdiscretionary and materials. Geographically, it had overweightallocations to emerging markets and Germany, andunderweight positions in Japan, the U.K., Australia and theperipheral countries of Europe.We like emerging markets due to attractive valuations and strongeconomic fundamentals, particularly in China, where we expectto see sustained above-average growth over the long termfuelled by rising personal wealth and domestic consumption.Alfred Lam, CFA, Vice-President and Portfolio ManagerYoonjai Shin, CFA, DirectorLewis Harkes, CFA, AnalystAndrew Ashworth, Analyst

Strength and experienceThe Transmerica CI Portfolios are managed by CI Investments Inc. on behalf of Transamerica Life Canada.Transamerica Life Canada is a leading life insurance companyCanada’s Investment Companyin Canada. Through a number of distribution channels, resultingin a national network of thousands of independent advisors,Transamerica provides a full spectrum of individual life insuranceand protection products, designed to help Canadians takeresponsibility for their financial future. Transamerica Life Canadais an Aegon company.CI Investments has been managing money for over four decadesand today is one of Canada’s largest investment fund companies.CI manages approximately $75 billion on behalf of two millionCanadian investors. CI provides the industry’s widest selectionof investment funds and leading portfolio managers on a varietyof platforms, including mutual and segregated funds, managedAegon is an international life insurance, pension and investmentsolutions and alternative investments.company. With headquarters in The Hague, the Netherlands,Aegon has businesses in over twenty markets in the Americas,Europe and Asia. Aegon companies employ approximately 25,000people and have nearly 47 million customers across the globe.CI is a subsidiary of CI Financial Corp. (TSX: CIX), an independent,Canadian-owned wealth management firm with approximately $99billion in assets as at December 31, 2012.

For more information on Transamerica CI Portfolios,please contact your advisor or visit www.transamericaciportfolios.com.All commentaries are published by CI Investments Inc., CI Investments Inc. is the sub-advisor of all the funds described herein, other thanAegon Capital Management Canadian Bond Pool which is managed by Aegon Capital Management. The commentaries are provided as a generalsource of information and should not be considered personal investment advice or an offer or solicitation to buy or sell securities. Every efforthas been made to ensure that the material contained in the commentaries is accurate at the time of publication. However, CI Investments Inc.cannot guarantee their accuracy or completeness and accepts no responsibility for any loss arising from any use of or reliance on the informationcontained herein.Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read theprospectus before investing. Unless otherwise indicated and except for returns for periods less than one year, the indicated rates of returnare the historical annual compounded total returns including changes in security value. All performance data assume reinvestment of alldistributions or dividends and do not take into account sales, redemption, distribution or optional charges or income taxes payable by anysecurityholder that would have reduced returns. Mutual funds are not guaranteed, their values change frequently and past performancemay not be repeated. Mutual fund securities are not covered by the Canada Deposit Insurance Corporation or by any other governmentdeposit insurer and there can be no assurances that the CI Money Market Funds will maintain its net asset value per security at a constantamount or that the full amount of your investment in these funds will be returned to you. ® CI Investments, the CI Investments design,Synergy Mutual Funds, Harbour Advisors, Harbour Funds, Global Managers and American Managers are registered trademarks ofCI Investments Inc. Signature Funds and Signature Global Advisors are trademarks of CI Investments Inc. Cambridge Advisors is the businessname of CI Global Invesments Inc. Certain portfolio managers of Cambridge Advisors are registered with CI Investments Inc.®Aegon and the Aegon logo are registered trademarks of Aegon N.V. Aegon Canada ULC and its subsidiary companies are licensed to use suchmarks.®Transamerica and the pyramid design are registered trademarks of Transamerica Corporation. Transamerica Life Canada is licensed to use suchmarks. First published January 2013.2 Queen Street East, Twentieth Floor, Toronto, Ontario M5C 3G7 I www.ci.comHead Office / Toronto416-364-11451-800-268-9374Calgary403-205-43961-800-776-9027Montreal514-875-00901-800-268-1602Vancouver604-681-33461-800-665-6994Client ServicesEnglish: 1-800-563-5181French: 1-800-668-3528FSC FPO1301-0015_E (01/13)