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The Money Management Newsletter: Savings
CI Mutual Funds Inc. FULPAY PLUS� review
As an investor, one of your primary objectives is to make investments that have solid growth potential over the long term. But in today’s volatile markets, you may be worried about losing some of your hard-earned capital. So how can you invest to grow your savings without the risk of losing your capital?

A CI Funds Product Review - July 2004
Money Management Newsletter

CI Mutual Funds Inc. and Skylon Advisors Inc. announced on June 17th 2004 the launch of FULPAY PLUS™ CI Funds-Linked Deposit Notes Series 1, a unique investment that provides principal protection while locking in the returns of a top-performing mutual fund every year.

With FULPAY PLUS™ CI Funds-Linked Deposit Notes, you will receive principal protection at maturity, exposure to a well-diversified portfolio of mutual funds, plus interest based on a formula derived from locking in the year’s best cumulative total return within the portfolio of available funds. Once the return of a fund is locked in, the fund is removed from the portfolio of funds. As a result, you potentially benefit from the right mutual fund at the right time.

FULPAY PLUS™ CI Funds-Linked Deposit Notes offer exposure to seven top CI mutual funds.

Along with the exposure to a well-diversified portfolio of mutual funds, you will benefit from the following features:

You have the potential to earn more on your investment than a typical GIC.
Your original investment is protected. Regardless of how markets perform over the seven-year term of the note, your principal is protected if you hold it to maturity (August 18, 2011).

You may sell your Notes at any time in any available secondary market* (subject to any applicable early trading charges). FULPAY PLUS™ CI Funds-Linked Deposit Notes are available June 14 to August 13, 2004.

The notes, which are issued by CIBC and are 100% eligible for registered plans, have a seven-year term. At maturity, investors are paid their principal and variable interest, which is based on a formula derived from locking in each year's best cumulative total return from the portfolio of available funds. Once a fund's return is locked in, that fund is removed from the portfolio. After this, even if that fund declines in value, its subsequent performance is not factored into the calculation of interest. The total interest payable will be the average of the cumulative locked-in returns of each of the seven funds.

"No one can consistently predict which asset class, geographic region or investment style is going to outperform each year," said David R. McBain, Skylon President and Chief Executive Officer.

"FULPAY PLUS™ CI Funds-Linked Deposit Notes take the guesswork out of investing by locking in the best cumulative performance each year out of a diverse portfolio of leading CI funds. This unique structure gives investors the potential to be in the right fund at the right time, year after year."

The portfolio represents a wide range of top managers, mandates and
Investment styles and consists of CI Global Fund, CI International Value Fund, CI Value Trust Sector Fund, Synergy Canadian Momentum Class, CI Canadian Investment Fund, Signature Dividend Fund and CI Canadian Bond Fund.

"With this lineup of funds, the notes allow investors to benefit from the gains of Canadian and global financial markets while enjoying the peace of mind of a principal guarantee," Mr. McBain said.

FULPAY PLUS™ CI Funds-Linked Deposit Notes are available until August 13, 2004. The issue price is $100 per note, with the minimum investment being $5,000. The complete terms of the offering are set out in an Information Statement, which can be obtained from your fiscal Agents Investment Advisor. Click here for more information or call your Investment/financial advisor. (FULPAY PLUS™** Information Statement)

CI Funds has over the past two years issued several fund-linked notes. Theirs notes have provided an alternative and/or as a companion investment, for GIC type investor investment portfolio holdings. Issued in series’, for sale at specified times, for a short duration.

CI Funds innovative offerings provide the more conservative investor the opportunity of growth potential through Capital market participation in mutual funds while enjoying principal guarantees. CI Pro-Fit Notes are linked to 3 funds as shown below. With CI Pro-Fit notes, you get an 8.0% return if the notes are redeemed by the bank after 4 years. If the notes are held to the end of their eight-year term, you will get both the full growth potential of three top-performing mutual funds from CI and a 100% capital protection.

As with any investment involving risk, you have to make yourself aware the conditions of the offer. For further detail please review the disclosure documents and any information statements that detail the risk factors relating to the investment.

"CI Pro-FIT Notes™ give investors a strong comfort factor," said David R. McBain, Skylon President and Chief Executive Officer. "Along with the capital protection, investors benefit from funds and portfolio managers with excellent long-term track records and the potential to produce outstanding returns."

CI Pro-FIT Notes™, which are issued by National Bank of Canada, are linked to the total return over an eight-year period of a portfolio equally divided between:

CI Value Trust Sector Fund is an American equity fund managed by Bill Miller, the only equity mutual fund manager to have outperformed the S&P 500 Index for the past 13 calendar years. CI Canadian Investment Fund has never had a losing year for the past nine calendar years under the tenure of Kim Shannon, a noted Canadian value manager. Signature High Income Fund, managed by Ben Cheng, invests in a diverse portfolio of high-yielding securities.

At the maturity of the notes, investors are paid their principal and any interest. Interest, if any, will be equal to the return of the portfolio of the three CI mutual funds. There are no restrictions on the growth potential such as averaging features or caps on returns, except that National Bank of Canada may redeem the notes after four years at a price that will give investors the equivalent of an attractive annual compounded rate of return of 8%.

"For investors who want to get back into the markets, the notes are a great way to participate without the worry of losing capital if they hold the notes to maturity," said Mr. McBain.

CI Pro-FIT Notes™, which are fully eligible for registered plans, are available through most financial advisors until May 28, 2004. (If past sale date, inquire for future offerings) The issue price is $100 per note, with the minimum investment being $2,000. The complete terms of the offering are set out in an Information Statement, which can be obtained by investors from their Fiscal Agents Investment advisor.

Editors note: Your original investment is protected. Regardless of how the markets perform over the eight-year term of the note, your principal is protected if you hold it to maturity. The 8.0% compound return is only if the notes are redeemed by the issuer (this is not you) after 4 years. You can sell the investment note into a secondary market. However, the value will be determined by the then market conditions and may be subject to brokerage fees. 100% RSP eligibility.

If Capital protection is a consideration you may be also interested in CI's SunWise Segregated Funds or CI Guaranteed Investment Funds.
** FULPAY PLUS™ CI Funds-Linked Deposit Notes, Series 1 are available for sale June 14, 2004 to August 13, 2004. Please contact your financial advisor for more information. Details of the risk factors of FULPAY PLUS™ CI Funds-Linked Deposit Notes, along with complete disclosure of how variable interest on FULPAY PLUS™ CI Funds-Linked Deposit Notes is calculated, are contained in the Information Statement dated June 14, 2004. Please be sure to review this with your financial advisor. FULPAY PLUS™ is a trademark of CIBC. ®CI Funds and the CI Funds design are registered trademarks of CI Mutual Funds Inc. *CIBC World Markets Inc. will maintain a liquid secondary market, but reserves the right not to do so in the future, without prior notice to investors.

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