annual financial statements · valeant pharmaceuticals international inc. (12,462) (1,281,786)...

Annual Financial Statements – as at December 31 , 2013

Trident Performance Corp.

Trident Performance Corp. II

Trident Performance Trust

Table of Contents

Management Responsibility for

Financial Reporting . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Independent Auditor’s Report . . . . . . . . . . . . . . . . . . . . . . 2

TRIDENT PERFORMANCE CORP. Financial Statements

Statement of Investment Portfolio . . . . . . . . . . . . . . . . . . 3

Statements of Net Assets . . . . . . . . . . . . . . . . . . . . . . . . . 5

Statements of Operations and

Retained Earnings (Deficit) . . . . . . . . . . . . . . . . . . . . . . 6

Statements of Changes in Net Assets . . . . . . . . . . . . . . . 7

Statements of Cash Flows . . . . . . . . . . . . . . . . . . . . . . . . . 8

Company Specific Financial

Instruments Risks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

TRIDENT PERFORMANCE CORP. II Financial Statements







Company Specific Financial


TRIDENT PERFORMANCE TRUSTFinancial Statements







Trust Specific Financial


Notes to the Financial Statements . . . . . . . . . . . . . . . . . . 30

Companies and Trust Information . . . . . . . . . . . . . . . . . . . 42

Annual Financial Statements as at December 31, 2013 – 1 –

MANAGEMENT’S RESPONSIBILITY FOR FINANCIAL REPORTING

The accompanying financial statements have been prepared by CI Investments Inc., the Manager of the Trident Performance Corp., and Trident PerformanceCorp. II (the “Companies”) and the Trident Performance Trust (the “Trust”), and approved by the Board of Directors of the Manager. The Companies’ and theTrust’s Manager is responsible for the information and representations contained in these financial statements and other sections of this report. CI InvestmentsInc. maintains appropriate processes to ensure that relevant and reliable financial information is produced. The financial statements have been prepared inaccordance with Canadian generally accepted accounting principles and include certain amounts that are based on estimates and judgments. The significantaccounting policies which management believes are appropriate for the Companies and the Trust are described in Note 2 to the financial statements.

PricewaterhouseCoopers LLP is the independent external auditor of the Companies and the Trust. They have audited the financial statements in accordance withCanadian generally accepted auditing standards to enable them to express to the shareholders and unitholders, as applicable, their opinion on the financialstatements. Their report is set out on the following page.

Derek J. Green Douglas J. JamiesonToronto, Ontario President and Chief Executive Officer Chief Financial OfficerMarch 21, 2014 CI Investments Inc. CI Investments Inc.


INDEPENDENT AUDITOR’S REPORT

To the Shareholders of Trident Performance Corp.Trident Performance Corp. II (the Companies)

and

To the Unitholders of Trident Performance Trust(the Trust)

We have audited the accompanying financial statements of the Trust and of each of the Companies, which comprise the statement of investment portfolioas at December 31, 2013, the statements of net assets as at December 31, 2013 and December 31, 2012, the statements of operations and retained earnings(deficit), changes in net assets and cash flows for the years then ended, and the related notes, which comprise a summary of significant accounting policiesand other explanatory information.

Management’s responsibility for the financial statementsManagement is responsible for the preparation and fair presentation of the financial statements of the Trust and of each of the Companies in accordancewith Canadian generally accepted accounting principles, and for such internal control as management determines is necessary to enable the preparation offinancial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s responsibilityOur responsibility is to express an opinion on the financial statements of the Trust and of each of the Companies based on our audits. We conducted ouraudits in accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan andperform an audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selecteddepend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statementsin order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of theentity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimatesmade by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained in each of our audits is sufficient and appropriate to provide a basis for our audit opinion.

OpinionIn our opinion, the financial statements of the Trust and of each of the Companies present fairly, in all material respects, the financial position of the Trustand of each of the Companies, as at December 31, 2013 and December 31, 2012, the results of each of their operations, the changes in each of their netassets and each of their cash flows for the years then ended, in accordance with Canadian generally accepted accounting principles.

Toronto, Ontario Chartered Professional Accountants,March 21, 2014 Licensed Public Accountants


Average FairNumber of Shares Description Cost ($) Value ($)

Equities Subject to Forward Agreement (19.5%) 100 Catamaran Corp.* 4,863 5,041 100 CGI Group Inc.* 3,177 3,552 100 Paramount Resources Ltd., Class A* 3,638 3,888 100 First Majestic Silver Corp.* 1,076 1,042

104,478 Legacy Oil & Gas Inc.* 1,750,007 640,450 100 MEG Energy Corp.* 3,907 3,061

1,000 New Gold Inc.* 10,050 5,560 100 Sierra Wireless Inc.* 1,185 2,563 100 Tahoe Resources Inc.* 2,009 1,767 100 Tourmaline Oil Corp.* 4,142 4,470

67,333 TransGlobe Energy Corp.* 970,269 597,917 100 Valeant Pharmaceuticals International Inc.* 7,606 12,462

Commissions and other Portfolio Transaction Costs –

Total Equities Subject to Forward Agreement (19.5%) 2,761,929 1,281,773

DERIVATIVE INSTRUMENTS

Forward Agreement (77.0%) (see Schedule A) 5,052,265

Total Investments (96.5%) 2,761,929 6,334,038

Other Net Assets (Liabilities) (3.5%) 224,656

Net Assets (100.0%) 6,558,694

*Securities sold forward as part of the Forward Agreement.Percentages shown in brackets relate investments at fair value to net assets of the Company.The accompanying notes are an integral part of these financial statements.

Trident Performance Corp.Financial Statements

Statement of Investment Portfolio as at December 31, 2013


Schedule AForward Agreement (77.0%)

Investments sold forward Fair Value ($)Catamaran Corp. (5,045)CGI Group Inc. (3,554)Paramount Resources Ltd., Class A (3,888)First Majestic Silver Corp. (1,043)Legacy Oil & Gas Inc. (640,450)MEG Energy Corp. (3,061)New Gold Inc. (5,560)Sierra Wireless Inc. (2,569)Tahoe Resources Inc. (1,767)Tourmaline Oil Corp. (4,470)TransGlobe Energy Corp. (597,917)Valeant Pharmaceuticals International Inc. (12,462)

(1,281,786)

Notional Units Underlying Trust Fair Value ($)496,762 Trident Performance Trust, Class A 6,334,051

Total Forward Agreement Value 5,052,265

Settlement Date 28-Feb.-2018Credit Rating of the Counterparty‡ A-1

‡Credit ratings are obtained from Standard & Poor’s, where available, otherwise ratings are obtained from: Moody's Investors Service, Dominion Bond Rating Services or Canadian Bond Rating Services.Percentages shown in brackets relate investments at fair value to net assets of the Company.The accompanying notes are an integral part of these financial statements.

Trident Performance Corp.Financial Statements (cont’d)

Statement of Investment Portfolio as at December 31, 2013 (cont’d)


ASSETSInvestments at fair value*CashUnrealized gain on forward agreementReceivable for securities soldDividends and accrued interest receivable

LIABILITIESPayable for securities purchasedPayable for share redemptionsManagement fees payableUnrealized loss on forward agreementService fees payableSpread fee payableForward fee payableAccrued expenses

Net assets and shareholders’ equity

SHAREHOLDERS’ EQUITYShare capitalContributed surplusRetained earnings (deficit)Net assets and shareholders’ equity

*Investments at cost

Net assets per class Class AClass F

Net assets per share (Note 8)Class A Class F

Number of shares outstanding (Note 3) Class AClass F

As at As at December 31, 2013 December 31, 2012

1,282 2,120 467 526

5,052 5,4231,150 3,260

– –7,951 11,329

– –1,376 3,228

2 3 – –8 12 – –3 5 3 4

1,392 3,252

6,559 8,077

5,868 7,103 – –

691 9746,559 8,077

2,762 3,907

6,502 8,008 57 69

10.84 11.03 11.35 11.50

600,060 726,110 5,000 6,000

Statements of Net Assets (in $000’s except for per share amounts and number of shares outstanding)

The accompanying notes are an integral part of these financial statements.



Statements of Operations and Retained Earnings (Deficit) (in $000’s except for per share amounts)


INVESTMENT INCOMEDividendsInterest Derivative income (loss)Income distribution from investmentsFees rebateLess: Foreign withholding taxes

EXPENSESManagement fees (Note 4)Administrative fees (Note 4)Service fees (Note 4)Legal feesAudit feesInterest expenseIndependent review committee feesHarmonized sales tax

Net investment income (loss) for the year

Realized and unrealized gain (loss) on investments and commissions and other portfolio transaction costs

Realized gain (loss) on investmentsForeign exchange gain (loss)Commissions and other portfolio transaction costsForward fee (Note 4)Change in unrealized appreciation (depreciation) of investments and derivativesNet gain (loss) on investments

Increase (decrease) in net assets from operations

Increase (decrease) in net assets from operations per classClass AClass F

Increase (decrease) in net assets from operations per share (Note 2)Class AClass F

STATEMENTS OF RETAINED EARNINGS (DEFICIT)Retained earnings (deficit), beginning of yearIncrease (decrease) in net assets from operations(Excess) deficiency on amounts paid on shares redeemedDividends from incomeDividends from realized gainsRetained earnings (deficit), end of year

Contributed surplus, beginning of year(Excess) deficiency on amounts paid on shares redeemedContributed surplus, end of year

For the years ended December 312013 2012

– – –5 6 6 – – –– – –– – –– – –5 6 6

21 30 6617 27 65 31 44 109– – –3 3 –– – 11 1 18 12 28

81 117 154

(76) (111) (148)

39 (724) 8,281 – – –– – –

(40) (63) (126)(64) 672 (7,059)(65) (115) 1,096

(141) (226) 948

(140) (222) 916(1) (4) 32

(0.19) (0.20) 0.40 (0.14) (0.24) 0.44

974 1,587 2,861 (141) (226) 948 (142) (387) (2,222)

– – –– – –

691 974 1,587

– – –– – –– – –



CLASS ANet assets, beginning of year

CAPITAL TRANSACTIONSAmounts paid for shares redeemed(Excess) deficiency on amounts paid on shares redeemed

DIVIDENDS TO INVESTORSFrom realized gainsFrom net incomeFrom return of capital


Net assets, end of year

CLASS FNet assets, beginning of year





TOTAL COMPANYNet assets, beginning of year





Statements of Changes in Net Assets (in $000’s)


8,008 11,401 12,894

(1,226) (2,792) (14,409) (140) (379) (2,110)

(1,366) (3,171) (2,409)

– – –– – –– – –– – –

(140) (222) 916

6,502 8,008 11,401

69 130 427

(9) (49) (717)(2) (8) (112)

(11) (57) (329)

– – –– – –– – –– – –

(1) (4) 32

57 69 130



8,077 11,531 13,321

(1,235) (2,841) (15,126)(142) (387) (2,222)

(1,377) (3,228) (2,738)

– – –– – –– – –– – –

(141) (226) 948

6,559 8,077 11,531



Statements of Cash Flows (in $000’s)

CASH PROVIDED BY (USED IN)OPERATING ACTIVITIES

Net investment income (loss)Proceeds from disposition of investmentsPurchase of investmentsNet change in non-cash balances related to operations

FINANCING ACTIVITIESProceeds from shares issuedAmounts paid for shares redeemed

Increase (decrease) in cash during the year

Cash (Bank overdraft), beginning of year

Cash (Bank overdraft), end of year


(76) (111) (148)3,529 18,796 18,115 (277) (1,291) (24,721)

(6) (26) (104) 3,170 17,368 (6,858)

– – 14,728 (3,229) (17,328) (7,610)(3,229) (17,328) 7,118

(59) 40 260

526 486 226

467 526 486




The Company is exposed to the financial instrument risks of the Trident Performance Trust (“the Trust”). The Company was created to obtain exposure to the Global MacroeconomicPortfolio held by the Trust by virtue of the Forward Agreement. By entering into the Forward Agreement the Company eliminated the direct risk exposure to its common share portfolio,and assumed the risk exposure of the Trust, as well as credit risk to the Counterparty of the Forward Agreement in respect of any positive amount of the value of the Forward Contract.Details of the Trust’s financial instruments risks exposure can be found in the Trust Specific Financial Instruments Risks in the Trust’s financial statements. As at December 31, 2013,the credit rating of the Counterparty to the Forward Agreement was A-1 (2012 - A-2).

Other Price RiskThe Company bears the other price risk exposure of the Trust. As at December 31, 2013 and 2012, the Trust was invested in diversified porfolio of international equities.

As at December 31, 2013, had the global markets increased or decreased by 10% (December 31, 2012 - 10%), with all other variables held constant, net assets of the Companywould have increased or decreased, respectively, by approximately $202,000 (December 31, 2012 - $340,000). In practice, actual results may differ from this analysis and thedifference may be material.

Fair Value Hierarchy

The tables below summarize the inputs used by the Company in valuing the Company’s investments and derivatives carried at fair value.

Long Positions at fair value as at December 31, 2013

Level 1 Level 2 Level 3 Total(in $000’s) (in $000’s) (in $000’s) (in $000’s)

Equities 1,282 – – 1,282 Forward agreement – 5,052 – 5,052 Total 1,282 5,052 – 6,334




There were no transfers between Level 1, 2 and 3 during the years ended December 31, 2013 and 2012.

Trident Performance Corp.Company Specific Financial Instruments Risks (Note 12)


Average FairNumber of Shares Description Cost ($) Value ($)

Equities Subject to Forward Agreement (66.2%) 29,042 Athabasca Oil Corp.* 300,004 187,902 18,682 ATS Automation Tooling Systems Inc.* 191,117 254,075 10,933 Canfor Corp.* 191,109 290,927 1,000 Catamaran Corp.* 47,630 50,410

20,572 Celestica Inc.* 191,114 227,115 11,029 CGI Group Inc.* 299,989 391,750

217,868 Crew Energy Inc.* 3,474,995 1,387,819 10,921 Detour Gold Corp.* 336,367 44,667 12,366 First Majestic Silver Corp.* 275,020 128,854 33,670 Great Canadian Gaming Corp.* 300,000 492,592 13,636 Horizon S&P/TSX 60 Index ETF* 300,003 330,809 1,000 MEG Energy Corp.* 33,970 30,610

16,060 Sierra Wireless Inc.* 191,114 411,618 19,645 Tahoe Resources Inc.* 298,211 347,127 1,000 Tourmaline Oil Corp.* 26,300 44,700 1,000 Valeant Pharmaceuticals International Inc.* 54,460 124,620

Commissions and other Portfolio Transaction Costs –

Total Equities Subject to Forward Agreement (66.2%) 6,511,403 4,745,595


Forward Agreement (30.4%) (see Schedule A) 2,178,276


Other Net Assets (Liabilities) (3.4%) 245,208

Net Assets (100.0%) 7,169,079

*Securities sold forward as part of the Forward Agreement.Percentages shown in brackets relate investments at fair value to net assets of the Company II.The accompanying notes are an integral part of these financial statements.

Trident Performance Corp. IIFinancial Statements



Schedule AForward Agreement (30.4%)

Investments sold forward Fair Value ($)Athabasca Oil Corp. (188,192)ATS Automation Tooling Systems Inc. (254,075)Canfor Corp. (291,474)Catamaran Corp. (50,450)Celestica Inc. (227,115)CGI Group Inc. (391,971)Crew Energy Inc. (1,389,998)Detour Gold Corp. (44,776)First Majestic Silver Corp. (128,977)Great Canadian Gaming Corp. (492,929)Horizon S&P/TSX 60 Index ETF (331,082)MEG Energy Corp. (30,610)Sierra Wireless Inc. (412,581)Tahoe Resources Inc. (347,127)Tourmaline Oil Corp. (44,700)Valeant Pharmaceuticals International Inc. (124,620)

(4,750,677)

Notional Units Underlying Trust Fair Value ($)713,168 Trident Performance Trust, Class A II 6,928,953

Total Forward Agreement Value 2,178,276

Settlement Date 28-Feb.-2018Credit Rating of the Counterparty‡ A-1

‡Credit ratings are obtained from Standard & Poor’s, where available, otherwise ratings are obtained from: Moody's Investors Service, Dominion Bond Rating Services or Canadian Bond Rating Services.Percentages shown in brackets relate investments at fair value to net assets of the Company II.The accompanying notes are an integral part of these financial statements.

Trident Performance Corp. IIFinancial Statements (cont’d)



ASSETSInvestments at fair value*CashUnrealized gain on forward agreementReceivable for securities soldIncome tax recoverableDividends and accrued interest receivable

LIABILITIESBank overdraftPayable for securities purchasedPayable for share redemptionsManagement fees payableUnrealized loss on forward agreementService fees payableForward fee payableIncome tax payableDistribution payableAccrued expenses

Net assets and shareholders’ equity

SHAREHOLDERS’ EQUITYShare capitalContributed surplusRetained earnings (deficit)Net assets and shareholders’ equity

*Investments at cost

Net assets per share (Note 8)Class A

Number of shares outstanding (Note 3) Class A

Statements of Net Assets (in $000’s except for per share amounts and number of shares outstanding)



4,746 4,169 9,498193 1,816 227

2,178 4,696 2,0153,350 2,600 10,475

20 35 1,627– – –

10,487 13,316 23,842

– – –– – –

3,296 2,578 10,0463 3 6– – –

10 14 245 4 9 – – –– – 2154 5 9

3,318 2,604 10,309

7,169 10,712 13,533

7,982 11,651 14,4542,536 2,164 1,942(3,349) (3,103) (2,863)7,169 10,712 13,533

6,511 9,766 15,028

8.40 8.60 8.76

853,295 1,245,245 1,544,415



Statements of Operations and Retained Earnings (Deficit) (in $000’s except for per share amounts)



– –6 9 – –– –– –– –6 9

27 35 24 31– –– –

42 52 – –3 3 1 16 14

103 136 – –

(97) (127)

(1,405) (2,662)– –– –

(58) (65)1,314 2,614(149) (113)

(246) (240)

(0.20) (0.15)

(3,103) (2,863)(246) (240)

– –– –– –

(3,349) (3,103)

2,164 1,942 372 222

2,536 2,164

INVESTMENT INCOMEDividendsInterest Derivative income (loss)Income distribution from investmentsFees rebateLess: Foreign withholding taxes

EXPENSESManagement fees (Note 4)Administrative fees (Note 4)Interest expenseCustody feesService fees (Note 4)Legal feesAudit feesIndependent review committee feeHarmonized sales tax

Provision for income tax



Realized gain (loss) on investmentsForeign exchange gain (loss)Commissions and other portfolio transaction costsForward fee (Note 4)Change in unrealized appreciation (depreciation) of investments and derivativesNet gain (loss) on investments


Increase (decrease) in net assets from operations per share

STATEMENTS OF RETAINED EARNINGS (DEFICIT)Retained earnings (deficit), beginning of yearIncrease (decrease) in net assets from operations(Excess) deficiency on amounts paid on shares redeemedDividends from incomeDividends from realized gainsRetained earnings (deficit), end of year

Contributed surplus, beginning of year(Excess) deficiency on amounts paid on shares redeemedContributed surplus, end of year





Net investment income (loss)Proceeds from sale of investmentsPurchase of investmentsNet change in non-cash balances related to operations

FINANCING ACTIVITIESDistribution paidAmounts paid for shares redeemed


Cash (Bank overdraft), beginning of year

Cash (Bank overdraft), end of year


CAPITAL TRANSACTIONSProceeds from shares issued Amounts paid for shares redeemed(Excess) deficiency on amounts paid on shares redeemed





10,712 13,533 23,492

– – –(3,669) (2,803) (10,806)

372 222 685(3,297) (2,581) (10,121)

– – (215)– – –– – –– – (215)

(246) (240) 377

7,169 10,712 13,533




(97) (127) (191)3,607 12,561 24,429(2,564) (2,156) (9,298)

10 1,575 (1,711)956 11,853 13,229

– (215) –(2,579) (10,049) (13,280)(2,579) (10,264) (13,280)

(1,623) 1,589 (51)

1,816 227 278

193 1,816 227




The Company II is exposed to the financial instrument risks of the Trident Performance Trust (“the Trust”). The Company II was created to obtain exposure to the GlobalMacroeconomic Portfolio held by the Trust by virtue of the Forward Agreement. By entering into the Forward Agreement the Company II eliminated the direct risk exposure to itscommon share portfolio, and assumed risk exposure of the Trust, as well as credit risk to the Counterparty of the Forward Agreement in respect of any positive amount of thevalue of the Forward Contract. Details of the Trust’s financial instruments risks exposure can be found in the Trust Specific Financial Instruments Risks in the Trust’s financialstatements. As at December 31, 2013, the credit rating of the Counterparty to the Forward Agreement was A-1 (2012- A-2).

Other Price RiskThe Company II bears the other price risk exposure of the Trust. As at December 31, 2013 and 2012, the Trust was invested in diversified portfolio of international equities.

As at December 31, 2013, had the global markets increased or decreased by 10% (December 31, 2012 - 10%), with all other variables held constant, net assets of the Company IIwould have increased or decreased, respectively, by approximately $221,000 (December 31, 2012 - $399,000). In practice, actual results may differ from this analysis and thedifference may be material.

2, had the global markets increased or decreased by 10% (December 31, 2012 - 10%), with all other variables held constant, net assets of the may


The tables below summarize the inputs used by the Company II in valuing the Company II’s investments and derivatives carried at fair value.






Equities 4,169 – – 4,169 Forward agreement – 4,696 – 4,696Total 4,169 4,696 – 8,865


Trident Performance Corp. IICompany Specific Financial Instruments Risks (Note 12)


Number of Shares/ Average FairPar Value Description Cost ($) Value ($)

LONG POSITIONS (66.9%) JAPAN (34.4%)

8,080 Aeon Co., Ltd. 108,613 115,890 11,000 Aozora Bank Ltd. 34,182 33,063 2,880 Asahi Group Holdings Ltd. 73,731 85,926

10,886 Bank of Kyoto Ltd. 99,174 96,295 17,000 Bank of Yokohama Ltd. 92,458 100,138

490 Central Japan Railway Co. 47,796 61,137 8,680 Chiba Bank Ltd. 61,557 61,985

410 Daito Trust Construction Co., Ltd. 38,310 40,610 2,400 Dentsu Inc. 81,141 103,728

680 East Japan Railway Co. 49,831 57,408 544 FANUC Corp. 85,196 105,460

1,340 Fujisoft Inc. 35,867 32,600 21,200 Fukuoka Financial Group Inc. 94,064 98,362 19,800 Hitachi Ltd. 150,637 158,770 9,600 IHI Corp. 40,395 43,960

14,300 Inpex Corp. 222,376 194,141 3,860 ITOCHU Corp. 39,457 50,536 1,480 ITOCHU Techno-Solutions Corp. 67,920 63,593 1,952 Japan Tobacco Inc. 58,716 67,138 7,500 JX Holdings Inc. 41,180 40,850

10,100 Kawasaki Heavy Industries Ltd. 39,123 44,824 5,600 Kirin Holdings Co., Ltd 72,519 85,403 3,600 LIXIL Group Corp. 84,202 104,612 8,340 Mitsubishi Corp. 152,992 169,503 9,720 Mitsubishi Heavy Industries Ltd. 72,653 63,726

32,300 Mitsubishi UFJ Financial Group Inc. 202,558 225,773 6,800 Mitsubishi UFJ Lease & Finance Co., Ltd. 41,100 44,170

11,020 Mitsui & Co., Ltd. 151,156 162,504 109,920 Mizuho Financial Group Inc. 236,477 251,674

8,400 Nippon Express Co., Ltd. 35,461 43,041 1,620 Nippon Television Network Corp. 31,405 31,013 8,800 Nisshinbo Holdings Inc. 65,802 89,470 1,240 Nomura Research Institute Ltd. 37,763 41,461 5,000 ORIX Corp. 70,838 93,047

17,100 Sapporo Holdings Ltd. 75,890 76,235 1,340 SCSK Corp. 29,402 37,236 1,228 Secom Co., Ltd. 69,484 78,280 6,700 Senshu Ikeda Holdings Inc. 37,025 33,046 1,920 Seven & I Holdings Co., Ltd. 70,676 80,756 5,840 Shizuoka Bank Ltd. 64,357 65,973 1,580 Sony Corp. 30,949 29,068 4,620 Sony Financial Holdings Inc. 72,286 89,097 5,970 Sumitomo Corp. 76,464 79,424 3,688 Sumitomo Mitsui Financial Group Inc. 177,417 201,244

11,800 Sumitomo Mitsui Trust Holdings Inc. 62,059 65,818 1,320 Takeda Pharmaceutical Co., Ltd. 71,281 64,174 6,900 The 77th Bank, Ltd. 31,437 35,355 8,600 The Dai-ichi Life Insurance Co., Ltd. 142,331 152,234 2,200 Tokio Marine Holdings Inc. 68,760 77,887 2,200 Tokyo Broadcasting System Holdings Inc. 31,036 28,891

Percentages shown in brackets relate investments at fair value to net assets of the Trust.The accompanying notes are an integral part of these financial statements.

Trident Performance TrustFinancial Statements




LONG POSITIONS (66.9%) (cont’d) JAPAN (34.4%) (cont’d)

7,400 Toshiba Corp. 40,653 32,991 1,060 Toyota Motor Corp. 70,997 68,533 1,280 TV Asahi Corp. 31,110 30,095 1,220 West Japan Railway Co. 52,688 56,051 3,700 Yamato Holdings Co., Ltd. 72,571 79,267

4,195,523 4,523,466 CANADA (7.1%)

USD 150,000 EnCana Corp., 6.5% 05/15/2019 182,182 186,112 USD 280,000 Goldcorp Inc., 3.7% 03/15/2023 289,394 263,512 USD 200,000 Royal Bank of Canada 1.5% 01/16/2018 196,903 208,788 USD 100,000 Suncor Energy Inc., 6.1% 06/01/2018 110,796 122,780 USD 150,000 The Bank of Nova Scotia 1.375% 12/18/2017†† 147,835 156,186

927,110 937,378

Number of Ounces BULLION (5.7%) 608 Gold Bullion 993,898 758,284

INDIA (5.1%) USD 400,000 NTPC Ltd., 5.625% 07/14/2021 379,592 421,940 USD 250,000 ONGC Videsh Ltd., 2.5% 05/07/2018 250,029 250,082

629,621 672,022 BRITISH VIRGIN ISLANDS (2.9%)

USD 50,000 CNOOC Finance 2011 Ltd., 4.25% 01/26/2021 50,227 53,930 USD 300,000 CNPC HK Overseas Capital Ltd., 4.5% 04/28/2021 281,714 324,156

331,941 378,086 NORWAY (2.0%)

USD 250,000 Statoil ASA 3.7% 03/01/2024 262,290 263,633

U.S.A. (1.9%) 646 Guggenheim S&P Global Water Index ETF 15,217 18,924

1,070 iShares S&P Global Healthcare Sector Index Fund 57,600 97,989 USD 140,000 The Walt Disney Co., 2.35% 12/01/2022 138,508 135,108

211,325 252,021 THAILAND (1.8%)

USD 250,000 PTT PCL 3.375% 10/25/2022 245,106 238,054

NETHERLANDS (1.8%) USD 250,000 Shell International Finance B.V., 2.25% 01/06/2023 244,463 237,106

SOUTH KOREA (1.6%) USD 200,000 Republic of Korea 3.875% 09/11/2023 208,853 215,671

SINGAPORE (1.3%) USD 150,000 Temasek Financial I Ltd., 4.3% 10/25/2019 161,291 173,263

LUXEMBOURG (0.9%) USD 100,000 Gazprom Via Gaz Capital S.A., 8.146% 04/11/2018 113,796 125,248

††CI Investments Inc., the Manager, is a corporation controlled by CI Financial Corp. The Bank of Nova Scotia has a significant interest in CI Financial Corp. Investments in The Bank of Nova Scotia areidentified above.Percentages shown in brackets relate investments at fair value to net assets of the Trust.The accompanying notes are an integral part of these financial statements.

Trident Performance TrustFinancial Statements (cont’d)




LONG POSITIONS (66.9%) (cont’d) RUSSIA (0.4%)

USD 50,000 Russian Foreign Bond 3.5% 01/16/2019 51,355 53,973

Total Long Positions 8,576,572 8,828,205

SHORT POSITIONS (-9.0%) U.S.A. (-9.0%)

(6,041) SPDR S&P 500 ETF Trust (1,016,844) (1,184,215)

Total Short Positions (1,016,844) (1,184,215)

Commissions and other Portfolio Transaction Costs (6,674)

Total Bonds & Equities (57.9%) 7,553,054 7,643,990


Foreign Currency Forward Contracts (0.5%)(see Schedule A) 62,130

Short Futures Contracts (1.0%)(see Schedule B) 128,295

Long Option Contracts (1.4%) (see Schedule C) 242,336 190,462

Interest Rate Swap Contracts (-0.1%)(see Schedule D) – (14,480)

Credit Default Swap Contracts (-1.2%)(see Schedule E) 71,630 (161,669)


Other Net Assets (Liabilities) (40.5%) 5,347,700

Net Assets (100.0%) 13,196,428

Principal amounts stated in:USD U.S. Dollar

Percentages shown in brackets relate investments at fair value to net assets of the Trust.The accompanying notes are an integral part of these financial statements.




‡Credit ratings are obtained from Standard & Poor’s, where available, otherwise ratings are obtained from: Moody's Investors Service, Dominion Bond Rating Services or Canadian Bond Rating Services.Percentages shown in brackets relate investments at fair value to net assets of the Trust.The accompanying notes are an integral part of these financial statements.

Schedule AForeign Currency Forward Contracts (0.5%)

Credit Rating of Settlement Contract UnrealizedContracts Counterparty the Counterparty‡ Date Rate ($) Pay Receive Gain (Loss) ($)

1 Goldman Sachs Group Inc. A-2 07-Jan-14 1.07 (14,061,336) US $ 15,000,000 Canadian $ 62,130 Total Foreign Currency Forward Contracts Value 62,130

Schedule BShort Futures Contracts (1.0%)

FairContracts Future Expiry Date Price ($) Currency Cost ($) Value ($)

(29) CBOT 10Yr Treasury Note Futures 20-Mar-14 123.05 US $ (3,862,085) (3,790,133)(24) CBOT 5Yr Treasury Note Futures 31-Mar-14 119.31 US $ (3,077,690) (3,041,467)(5) Gold COMEX 100 oz Futures 26-Feb-14 1,202.30 US $ (659,105) (638,511)(5) TSE TOPIX Stock Index Futures 13-Mar-14 1,302.50 Japanese Yen (656,402) (656,876)

(8,255,282) (8,126,987) Exercise Price (8,255,282) Total Short Futures Contracts Value 128,295

Schedule CLong Option Contracts (1.4%)

Notional Expiry Strike Premium Paid FairAmount Underlying Interest Date Price ($) (Received) ($) Value ($)

2,500,000,000 Swap Spread Cap [email protected] 09-Jan-15 0.02 21,433 4,979 30,000,000 Swap Spread Cap 2Yr-10Yr@200Bps 15-Jul-15 0.02 53,214 131,492 15,000,000 Swap Spread Cap 5Yr-30Yr@200Bps 07-Jan-15 0.02 25,173 9,908 18,000,000 Swap Spread Cap 5Yr-30Yr@200Bps 07-May-15 0.02 21,031 10,228 2,500,000 Swaption AUD @ 0.35 Barc 10-Mar-14 0.04 12,330 106 2,000,000 Swaption AUD @ 0.35 Barc 11-Jun-14 0.04 11,856 1,144 1,000,000 Swaption AUD @ 0.4 Barc 04-Dec-14 0.04 5,767 4,979 5,000,000 Swaption EUR @1.3 GS 20-Feb-14 0.01 10,229 350 2,000,000 Swaption EUR @2.4 Barc 31-Jan-14 0.02 5,115 20 6,000,000,000 Swaption KRW @2.5 Barc 28-May-14 0.03 8,451 650 8,000,000 Swaption USD @1.1 Barc 30-May-17 0.01 7,308 5,653 2,000,000 Swaption USD @1.4 Cs 27-Jun-14 0.01 7,350 1,199 4,000,000 Swaption USD @1.45 Cs 24-Jun-14 0.02 14,870 3,178 4,000,000 Swaption USD @1.5 Barc 24-Jun-14 0.02 13,649 3,734 20,000 TSE TOPIX INDEX Call @1275 10-Jan-14 1,275.00 2,582 6,738 30,000 TSE TOPIX INDEX Call @1300 10-Jan-14 1,300.00 3,823 5,386 2,000,000,000 OTC Opt. USD Call JPY Put@125 17-May-14 125.00 18,155 718 Total Long Option Contracts Value 242,336 190,462




‡Credit ratings are obtained from Standard & Poor’s, where available, otherwise ratings are obtained from: Moody's Investors Service, Dominion Bond Rating Services or Canadian Bond Rating Services.Percentages shown in brackets relate investments at fair value to net assets of the Trust.The accompanying notes are an integral part of these financial statements.

Schedule DInterest Rate Swap Contracts (-0.1%)

Credit RatingNotional Fair Value of the FairAmount (Local) Swap Contracts Counterparty‡ Due Date Price ($) Cost ($) Value ($)

100,000,000 (753,913) JPY 5Yr P-0.4725% Barc A-2 16-Mar-17 (0.01) - (7,604)100,000,000 (101,980) JPY 7Yr P-0.505% Barc A-2 04-Jan-20 0.00 - (1,027)100,000,000 (455,902) JPY P-0.395% Cs A-1 20-Aug-17 0.00 - (4,611)3,000,000 35,406 NOK 10Yr Rec 3.4875% Cs A-2 30-Dec-23 0.01 - 6,198 100,000,000 (737,188) TRS JPY 5Yr P-0.464% V. Libor V. Tokyo Barc A-2 27-Feb-17 (0.01) - (7,436) Total Interest Rate Swap Contracts Value - (14,480)

Schedule ECredit Default Swap Contracts (-1.2%)

Credit RatingNotional Fair Value of the FairAmount (Local) Swap Contracts Counterparty‡ Due Date Price ($) Cost ($) Value ($)

500,000 (13,146) Black & Decker Corp., 1% (Pay Cpn.) A-2 20-Jun-14 0.00 11,497 (2,453)500,000 (25,191) Carnival Corp., -1% (Pay Cpn.) A-2 20-Sep-14 (0.01) 23,086 (3,657)500,000 (21,369) CDX IG HVOL CDSI, 1% Bp Gs A-2 20-Jun-15 (0.01) 15,675 (7,008)400,000 (3,923) Accor SA, 1% Bp Cs A-1 21-Mar-16 (0.02) (2,824) (6,992)200,000 3,992 Barrick Gold, 1% Sp JPM A-1 20-Jun-18 (0.03) (10,038) (5,306)800,000 357 Macy's Inc., 1% Bp Cs A-1 22-Sep-14 (0.01) (6,545) (6,354)250,000 (7,762) Commonwealth Bank of Australia, 1% Bp Gs A-2 20-Jun-15 (0.01) 5,006 (3,229)500,000 (9,690) HSBC Bank PLC, 1% Bp Gs A-2 20-Dec-14 (0.01) 7,418 (6,723)300,000 2,344 Ingersoll Rand Co., 1% Bp Gs A-2 20-Jun-15 (0.01) (6,909) (4,420)1,100,000 (5,029) John Hancock Financial Services Inc., -2.10% (Pay Cpn.) A-2 20-Mar-14 0.00 - (5,275)500,000 (3,981) Target Corp., -1% (Pay Cpn.) A-2 20-Jun-14 0.00 1,750 (2,463)500,000 (5,415) AutoZone Inc., 5Yr 1% Bp Gs A-2 20-Jun-17 (0.03) (8,331) (14,069)250,000 (2,460) BHP 5Yr Bp Cs A-2 20-Sep-18 (0.02) (2,894) (5,513)250,000 (3,275) BOA 5Yr 1.38% Bp Jpm A-1 20-Sep-18 (0.01) - (3,652)200,000 (1,952) Brazil 5Yr 2.075% Sp Barc A-2 20-Sep-18 (0.04) (5,410) (7,478)250,000 (9,899) Brunswick Corp., 5Yr 1% Bp Gs A-2 20-Sep-15 (0.01) 6,813 (3,695)800,000 (13,296) CDX IG20 5Yr 1% Bp Barc A-2 20-Jun-18 (0.02) (2,550) (17,208)400,000 (10,710) ITRX Asia S19 5Yr 1% Bp Barc A-2 20-Jun-18 0.00 11,789 583 400,000 (8,418) ITRX EUR S19 5Yr 1% Bp Barc A-2 20-Jun-18 (0.02) 2,565 (10,008)400,000 (39,729) Santan 3 Yr Bp Cs A-2 20-Sep-16 (0.06) 20,204 (37,870)500,000 (19,032) Whirlpool Corp., 5Yr 1% Bp Gs A-2 20-Mar-18 (0.02) 11,328 (8,879) Total Credit Default Swap Contracts Value 71,630 (161,669)

20



Annual Financial Statements as at December 31, 2013

ASSETSInvestments at fair value*CashShort-term investmentsUnrealized gain on futures and foreign currency forward contractsDaily variation margin on derivative investmentsSwaps, swaptions and options at fair valueMargin for short salesReceivable for securities soldFees rebate receivableDividends and accrued interest receivable

LIABILITIESPayable for securities purchasedPayable for unit redemptionsManagement fees payableUnrealized loss on futures and foreign currency forward contractsSwaps, swaptions and options at fair valueDividend payable on securities sold shortInterest payable on securities sold shortPerformance fees payableInvestments sold short at fair value**Accrued expenses

Net assets and unitholders’ equity

UNITHOLDERS’ EQUITYUnit capitalContributed surplusRetained earnings (deficit)Net assets and unitholders’ equity

*Investments at cost**Investments sold short at cost

Net assets per classClass AClass A II

Net assets per unit (Note 8)Class AClass A II

Number of units outstanding (Note 3) Class AClass A II

Statements of Net Assets (in $000’s except for per unit amounts and number of units outstanding)



8,828 14,904 10,057 6,741 3,245 32,438

– – 917 191 104 519

1,928 2,925 3,274 197 1,824 3,174

2,029 3,751 5,521 – 750 –– 1 –

79 104 371 19,993 27,608 56,271

851 32 – 4,500 5,860 28,050

19 23 51– 137 262

183 1,235 1,690 57 59 82 – 6 7 – – –

1,184 3,815 3,730 3 3 7

6,797 11,170 33,879

13,196 16,438 22,392

12,671 15,624 21,111 – – –

525 814 1,281 13,196 16,438 22,392

8,570 14,519 9,730 (1,017) (3,516) (3,562)

6,306 7,551 10,859 6,890 8,887 11,533

12.69 12.87 12.92 9.66 9.80 9.84

496,762 586,954 840,449 713,168 906,706 1,172,072


– 21 –


INVESTMENT INCOMEDividendsInterest Derivative income (loss)Fees rebateLess: Foreign withholding taxes

EXPENSESManagement fees (Note 4)Administrative fees (Note 4)Performance fees (Note 4)Interest expenseDividend expense on securities sold shortInterest expense on securities sold shortLegal feesAudit feesIndependent review committee feesHarmonized sales tax



Realized gain (loss) on investmentsForeign exchange gain (loss)Commissions and other portfolio transaction costsChange in unrealized appreciation (depreciation) of investments and derivativesNet gain (loss) on investments


Increase (decrease) in net assets from operations per classClass AClass A II

Increase (decrease) in net assets from operations per unit Class AClass A II

STATEMENTS OF RETAINED EARNINGS (DEFICIT)Retained earnings (deficit), beginning of year Increase (decrease) in net assets from operations(Excess) deficiency on amounts paid on units redeemedDistribution from incomeDistribution from realized gainsRetained earnings (deficit), end of year

Contributed surplus, beginning of year(Excess) deficiency on amounts paid on units redeemedContributed surplus, end of year

Statements of Operations and Retained Earnings (Deficit) (in $000’s except for per unit amounts)



112 123 225 260 301 718 (585) (577) (907)

– – –(9) (17) (32)

(222) (170) 4

199 258 533 46 62 116 – – –

41 42 167 68 104 169 6 19 27 – – –3 3 1 1 1 1

30 17 35 394 506 1,049

(616) (676) (1,045)

(461) 1,721 370 1,143 40 195

(45) (30) (65)(263) (1,148) 2,362 374 583 2,862

(242) (93) 1,817

(95) (47) 1,197 (147) (46) 620

(0.16) (0.04) 0.59 (0.14) (0.04) 0.27

814 1,281 1,534 (242) (93) 1,817 (47) (374) (2,070)

– – –– – –

525 814 1,281

– – –– – –– – –





CAPITAL TRANSACTIONSProceeds from units issued Amounts paid for units redeemed(Excess) deficiency on amounts paid on units redeemed

DISTRIBUTIONS TO INVESTORSFrom realized gainsFrom net incomeFrom return of capital



CLASS A IINet assets, beginning of year






7,551 10,859 13,237

– – 14,000 (1,007) (2,831) (15,181)

(143) (430) (2,394)(1,150) (3,261) (3,575)

– – –– – –– – –– – –

(95) (47) 1,197

6,306 7,551 10,859

8,887 11,533 23,489

1,500 – –(3,446) (2,656) (12,900)

96 56 324(1,850) (2,600) (12,576)

– – –– – –– – –– – –

(147) (46) 620

6,890 8,887 11,533







Net investment income (loss)Proceeds from sale of investmentsProceeds from short sale of investmentsPurchase of investmentsShort cover of investments(Increase) decrease in margin for short sales(Increase) decrease in daily variation margin on derivative instrumentsNet change in non-cash balances related to operations

FINANCING ACTIVITIESDistributions paidProceeds from units issuedAmounts paid for units redeemed


Cash (bank overdraft), beginning of year

Cash (bank overdraft), end of year


(616) (676) (1,045)30,845 14,988 39,027

– – 9,977(25,104) (17,784) (27,941)

– – (13,464)1,722 1,770 6,872

997 349 (1,938)12 211 (331)

7,856 (1,142) 11,157

– – –1,500 – 14,000(5,860) (28,051) (22,770)(4,360) (28,051) (8,770)

3,496 (29,193) 2,387

3,245 32,438 30,051

6,741 3,245 32,438


TOTAL TRUSTNet assets, beginning of year






16,438 22,392 36,726

1,500 – 14,000 (4,453) (5,487) (28,081)

(47) (374) (2,070)(3,000) (5,861) (16,151)

– – –– – –– – –– – –

(242) (93) 1,817

13,196 16,438 22,392

Statements of Changes in Net Assets (in $000’s) (cont’d)


Other Price RiskAs at December 31, 2013 and 2012, the Trust was exposed to other price risk as it was invested in a diversified portfolio of international equities. As a result, the Trust wassensitive to changes in global economic conditions. The Trust has a long/short equity strategy that is taken via macro themes initiated by the portfolio manager to express bearishand bullish views within particular sectors. This strategy can reduce total exposure to the market as the short positions offset the long positions’ sensitivity to the overall market.

As at December 31, 2013, had the global markets increased or decreased by 10% (December 31, 2012 - 10%), with all other variables held constant, net assets of the Trustwould have increased or decreased, respectively, by approximately $421,000 (December 31, 2012 - $669,000). In practice, actual results may differ from this analysis and thedifference may be material.

The Trust’s investments were concentrated in the following segments:

as at December 31, 2012

Category Net Assets (%)

Long Positions:U.S.A. 35.7Other Net Assets (Liabilities) 29.2Gold Bullion 10.3Japan 8.2India 7.1Canada 6.0Singapore 6.0Interest Rate Swap Contracts 3.6Malaysia 2.5Long Option Contracts 2.5Thailand 2.4Netherlands 2.4Norway 2.2China 2.0British Virgin Islands 1.6Cayman Islands 1.6Luxembourg 1.5Isle of Man 1.2Long Futures Contracts 0.5Credit Default Swap Contracts (2.3)Foreign Currency Forward Contracts (0.7)Total Long Positions 123.5

Short PositionsU.S.A. (22.8)Ireland (0.4)Short Option Contracts (0.2)Short Futures Contracts (0.1)Total Short Positions (23.5)


Trident Performance TrustTrust Specific Financial Instruments Risks (Note 12)


Credit Risk As at December 31, 2013 and 2012, the Trust seeks to obtain a positive return on the default of low investment grade fixed income investments mainly through the investmentsin credit default swaps with counterparties. These investments are exposed to the risk of impairment when there is risk of credit default in the market. All fixed income securitiesrated BB/Ba/B+ or lower are considered below investment grade and have a higher credit risk than investment grade bonds.

The Trust was invested in fixed income securities, preferred securities and derivative instruments if any, with the following credit ratings:

as at December 31, 2013*

Credit Rating^ Net Assets (%)AAA/Aaa/A++ 1.3 AA/Aa/A+ 9.1 A 6.3 BBB/Baa/B++ 12.6 Not Rated 0.1 Total 29.4

as at December 31, 2012*

Credit Rating^ Net Assets (%)AAA/Aaa/A++ 10.6 AA/Aa/A+ 24.4 A 7.9BBB/Baa/B++ 21.7Not Rated 1.6 Total 66.2

Interest Rate Risk

The tables below summarize the Trust’s exposure to interest rate risk, categorized by the contractual maturity date.


Less than 1 - 3 3 - 5 Greater1 Year Years Years than 5 Years Total

(in $000’s) (in $000’s) (in $000’s) (in $000’s) (in $000’s)Interest Rate Exposure 10,538 – 863 2,566 13,967


Less than 1 - 3 3 - 5 Greater1 Year Years Years than 5 Years Total

(in $000’s) (in $000’s) (in $000’s) (in $000’s) (in $000’s)Interest Rate Exposure 9,066 2,924 866 4,419 17,275

As at December 31, 2013, had the prevailing interest rates increased or decreased by 0.25% (December 31, 2012 - 0.25%), with all other variables held constant, net assets ofthe Trust would have indirectly decreased or increased, respectively, by approximately $36,000 (December 31, 2012 - $98,000). In practice, the actual results may differ from thisanalysis and the difference may be material.

*Credit ratings are obtained from Standard & Poor’s, where available, otherwise ratings are obtained from: Moody's Investors Service, Dominion Bond Rating Services or Canadian Bond Rating Services, respectively.^Refer to Note 12 for Credit Rating cross reference.

Trident Performance TrustTrust Specific Financial Instruments Risks (Note 12) (cont’d)



Currency Risk As at December 31, 2013 and 2012, the Trust was exposed to currency risk as some of its assets were denominated in currencies other than Canadian dollars, the functional currencyof the Trust.

The tables below summarize the Trust’s exposure to currency risk.


Financial Instruments Derivatives Total Currency Exposure Exposure Exposure Net Assets

Currency (in $000’s) (in $000’s) (in $000’s) (%)Hong Kong Dollar 975 – 975 7.4 Korean Won – 163 163 1.2 Australian Dollar 104 (51) 53 0.4 US Dollar 16,186 (16,139) 47 0.4 Singapore Dollar 38 – 38 0.3 Norwegian Krone 9 6 15 0.1 Japanese Yen (376) 346 (30) (0.2)Euro (385) 266 (119) (0.9)British Pound (388) – (388) (2.9)Total 16,163 (15,409) 754 5.8


Financial Instruments Derivatives Total Currency Exposure Exposure Exposure Net Assets

Currency (in $000’s) (in $000’s) (in $000’s) (%)Hong Kong Dollar 915 – 915 5.6 Norwegian Krone 491 – 491 3.0 Australian Dollar 473 – 473 2.9 Japanese Yen 80 – 80 0.5 Swedish Krona 47 – 47 0.3 Singapore Dollar 12 – 12 0.1 Euro (399) – (399) (2.4)British Pound (457) – (457) (2.8)US Dollar 13,961 (14,984) (1,023) (6.2)Total 15,123 (14,984) 139 1.0

As at December 31, 2013, had the Canadian dollar strengthened or weakened by 10% (December 31, 2012 - 10%) in relation to all other foreign currencies held in the Trust,with all other variables held constant, net assets of the Trust would have decreased or increased, respectively, by approximately $75,000 (December 31, 2012 - $14,000). In practice,the actual results may differ from this analysis and the difference may be material.






The tables below summarize the inputs used by the Trust in valuing the Trust’s investments and derivatives carried at fair value.



Equities 4,640 – – 4,640 Gold bullion 758 – – 758Bonds – 3,430 – 3,430 Foreign currency forward contracts, net – 62 – 62 Options – 190 – 190 Swaps, net – (176) – (176)Total 5,398 3,506 – 8,904

Short Positions at fair value as at December 31, 2013


Equities (1,184) – – (1,184)Futures contracts 128 – – 128 Total (1,056) – – (1,056)



Equities 5,009 – – 5,009 Gold bullion 1,685 – – 1,685Bonds – 8,210 – 8,210 Foreign currency forward contracts, net – (109) – (109)Futures contracts 85 – – 85 Options – 416 – 416 Swaps, net – 212 – 212 Total 6,779 8,729 – 15,508

Short Positions at fair value as at December 31, 2012


Equities (3,306) – – (3,306)Bonds – (509) – (509)Futures contracts (10) – – (10)Options – (39) – (39)Total (3,316) (548) – (3,864)





Fair Value Hierarchy (cont’d)

The tables below outline cash flows associated with investments sold short.


Less than 3 months Greater than3 months to 1 year 1 year(in $000’s) (in $000’s) (in $000’s)

Investments sold short at fair value (1,184) – –Total (1,184) – –


Less than 3 months Greater than3 months to 1 year 1 year(in $000’s) (in $000’s) (in $000’s)

Investments sold short at fair value (3,575) – (240)Total (3,575) – (240)



1. THE COMPANIES AND THE TRUSTTrident Performance Corp. (the “Company”) is a mutual fund corporation established under the laws of the Province of Ontario on January 31, 2008.The Company commenced operations on February 22, 2008. The Company issued Class A Shares and Class F Shares. The Company’s Class A Sharesare listed on the Toronto Stock Exchange, under the symbol TCP.

Trident Performance Corp. II (the “Company II”) is a corporation established under the laws of the Province of Ontario on March 30, 2009. On April 27,2009, the Company II completed an initial public offering of 4,510,000 Class A Shares at $10 per share. The Company II’s Class A Shares are listedon the Toronto Stock Exchange, under the symbol TCZ.

CI Investment Inc. is the manager (the “Manager”) and the investment advisor (the “Investment Advisor”) to the Company and Company II (the“Companies”).

Through a Forward Agreement (the “Forward Agreement”) with National Bank Correspondent Network (“NBCN”), the Companies provideshareholders with exposure to the performance of the Global Macroeconomic Portfolio that may consist of equity and fixed-income securities,commodities, currencies and derivative instruments of global companies. The Companies will partially settle the Forward Agreement from time totime prior to the February 28, 2018 (the “Forward Date) in order to fund redemptions of Shares and the payment of expenses and other liabilities ofthe Companies.

Trident Performance Trust (the “Trust”) is an investment trust established under the laws of the Province of Ontario pursuant to a declaration of trustdated January 31, 2008. The Trust commenced operations on February 22, 2008. The Trust is authorized to issue an unlimited number of redeemable,transferable units (the “Trust Units”). There are Class A and Class A II units to differentiate between the counterparties to the Forward Agreementswith the Trust. The Trust holds the global macroeconomic portfolio.

CI Investments Inc. is the trustee (the “Trustee”) of the Trust. The Trustee has retained Trident Investment Management LLC as the investment advisor(the “Investment Advisor”) to the Trust. The Investment Advisor will manage the Trust’s investment portfolio pursuant to an investment advisoryagreement between the Trustee and Trident.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESThese financial statements have been prepared in accordance with Canadian Generally Accepted Accounting Principles (“Canadian GAAP”).

The following is a summary of the significant accounting policies of the Companies and the Trust:

(a) Valuation of InvestmentsCanadian GAAP requires the fair value of financial instruments traded in an active market to be measured based on an investment’s bid/ask pricedepending on the investment position (long/short).

For the purpose of processing shareholder/unitholder transactions, net asset value is calculated based on the closing market price of exchange-tradedinvestments (referred to as “Net Asset Value”), while for financial statement purposes net assets are calculated based on bid/ask price of suchinvestments (referred to as “Net Assets”).

In accordance with National Instrument 81-106, a comparison between the Net Asset Value per share/unit and the Net Assets per share/unit isdisclosed in the Note 8.

Notes to the Financial Statements


At the financial reporting date, listed securities are valued based on the bid price for securities held long and the ask price for securities sold short.Unlisted securities are valued based on price quotations from recognized investment dealers, or failing that, their fair value is determined by theManager on the basis of the latest reported information available. Fixed income securities, debentures, money market investments and other debtinstruments including short-term investments, are valued at the bid quotation from recognized investment dealers. Underlying funds are valued oneach business day at their net asset value as reported by the underlying funds’ manager.

(b) Commissions and Other Portfolio Transaction CostsTransaction costs, such as brokerage commissions, incurred in the purchase and sale of securities, are included in “Commissions and other portfoliotransaction costs” in the Statements of Operations.

(c) Cost of InvestmentsCost of investments represents the amount paid for each security, and is determined on an average cost basis excluding commissions and transaction costs.

(d) Investment Transactions and Income RecognitionInvestment transactions are accounted for on the trade date for financial reporting purposes and any unrealized and realized gains and losses on suchtransactions are calculated on an average cost basis.

Dividend income and distributions from investments are recognized on the ex-dividend/ex-distribution date and interest income is accounted for onthe accrual basis.

Distributions received from income trust holdings are recorded as income, capital gains or a return of capital, based on the best information availableto the Manager. Due to the nature of these investments, actual allocations could vary from this information. Distributions from income trusts that aretreated as a return of capital for income tax purposes reduce the average cost of the underlying investment trust.

Distributions received from investment fund holdings are recognized by the Companies and the Trust in the same form in which they were receivedfrom the underlying funds.

(e) Foreign ExchangeForeign currency amounts are translated into Canadian dollars, the functional currency of the Companies and the Trust, as follows: fair value ofinvestments, derivatives, other assets and liabilities at the closing rate of exchange on each business day; income and expenses, purchases, salesand settlements of investments at the rate of exchange prevailing on the respective dates of such transactions. Foreign exchange gains (losses) oncompleted transactions are included in “Foreign exchange gain (loss)” in the Statements of Operations.

(f) Increase (Decrease) in Net Assets from Operations per Share/UnitIncrease (decrease) in net assets from operations per share/unit in the Statements of Operations is calculated by dividing the increase (decrease) innet assets from operations per class by the weighted average number of corresponding class shares/units outstanding during the period.

(g) Futures Contracts Futures Contracts are valued using the bid price posted on the related public exchange. All gains or losses arising from futures contracts are recordedas part of “Change in unrealized appreciation (depreciation) of investments and derivatives” until the contracts are closed out or expired, at whichtime the gains (losses) are realized and reported as “Realized gain (loss) on investments” in the Statements of Operations.

Notes to the Financial Statements (cont’d)


(h) Forward ContractsThe Companies or the Trust may enter into forward contracts. Forward foreign currency contracts are valued on each valuation day based on thedifference between the value of the contract on the date the contract originated and the value of the contract on the valuation day.

All unrealized gains (losses) arising from forward foreign currency contracts are recorded as part of “Change in unrealized appreciation (depreciation)of investments” in the Statements of Operations and “Unrealized gain (loss) on futures and foreign currency forward contracts” in the Statements ofNet Assets until the contracts are closed out or expire, at which time the gains (losses) are realized and reported as “Realized gain (loss) oninvestments” in the Statements of Operations.

The value of the Forward Agreements on the valuation date is equal to the gain or loss that would be realized if the contracts were closed out or expired.Investments sold forward as part of the Forward Agreement are valued at the market close price, and the Underlying Trust is valued at its net assetvalue as reported by the Underlying Trust’s manager on the valuation date for purposes of determining the value of the forward contract. All gains(losses) arising from the forward agreements are recorded as part of “Change in unrealized appreciation (depreciation) of investments and derivatives”in the Statements of Operations and “Unrealized gain (loss) on forward contract” in the Statements of Net Assets until the contracts are closed out orexpire; at which time the gains (losses) are realized and reported as “Realized gain (loss) on investments” in the Statements of Operations.

(i) Credit Default SwapsThe fair value of credit default swaps with exposures to underlying marketable issuers are determined using indicative bid values obtained from third-party broker-dealers. The broker-dealers determine the fair value using valuation models that are based, on assumptions that are supported byobservable market inputs. The indicative bid values are independently assessed by the Manager to ensure that they are reasonable. The fair valuesof credit default swaps are affected by the perceived credit risk of the underlying issuers, movements in credit spreads and the length of time tomaturity.

Entering into credit default swaps involves, to varying degrees, elements of credit and market risk. Such risks involve, but are not limited to, thepossibility that there will be no liquid market for the agreements, and that the counterparty to the agreements may default on its obligations.

Any income received for credit default swaps contracts is recorded as “Derivative income (loss) ” in the Statements of Operations, when the creditdefault swaps contracts are closed out or expire, any gains (losses) are recorded as “Realized gain (loss) on investments” in the Statements ofOperations.

(j) Short SellingWhen the Trust sells a security short, it will borrow that security from a broker to complete the sale. The Trust will incur a loss as a result of a shortsale if the price of the borrowed security increases between the date of the short sale and the date on which the Trust closes out its short positionby buying that security. The Trust will realize a gain if the security declines in price between those dates. The gains or losses arising from shortpositions are reflected in the Statements of Operations as part of “Change in unrealized appreciation (depreciation) of investments” and fair value ofshort positions is reflected in the Statements of Net Assets in “Investments sold short at fair value”. When the short position is closed out, gains orlosses are realized and included in “Realized gain (loss) on investments” in the Statements of Operations.

(k) Options ContractsOption contracts are valued each valuation day according to the gain or loss that would be realized if the contracts were closed out. All gains or lossesarising from option contracts are recorded as part of “Change in unrealized appreciation (depreciation) of investments” until the contracts are closedout or expire, at which time the gains (losses) are realized and reflected in the Statements of Operations in “Realized gain (loss) on investments”.

Over-the-counter options are valued using the Black & Scholes model, whereas, exchange traded options are valued at bid/ask price taken from theexchange.



(l) BullionGold bullion is valued based on North America closing price of the spot price of the underlying commodity. All unrealized gains (losses) arising frombullion holdings are recorded as part of “Change in unrealized appreciation (depreciation) of investments and derivatives” in the Statements ofOperations until the bullion holdings are sold, at which time the gains (losses) are realized and reflected in the Statements of Operations in “Realizedgain (loss) on investments”.

(m) Private PlacementsThe fair value of private placements is determined by using valuation models that may be based, in part, on assumptions that are not supported byobservable market inputs. These methods and procedures may include, but are not limited to, performing comparisons with prices of comparable orsimilar securities, obtaining valuation related information from issuers and/or other analytical data relating to the investment and using otheravailable indications of value. These values are independently assessed internally to ensure that they are reasonable. However, because of theinherent uncertainty of valuation, the estimated fair values for the aforementioned securities and interests may be materially different from the valuesthat would have been used had a ready market for the investment existed. The fair values of private placements are affected by the perceived creditrisks of the issuer, predictability of cash flows and the length of time to maturity.

(n) Interest Rate Swaps The fair value of interest rate swaps are determined using indicative bid values obtained from third-party broker-dealers. The broker-dealersdetermine the fair value using valuation models that are based on assumptions that are supported by observable market inputs, including the interestrates for that day. The indicative bid values are independently assessed internally to ensure that they are reasonable.

Any income received for interest rate swaps contract in recorded as “Derivative income (loss)” in the Statements of Operations.

(o) Cash and Short-Term InvestmentsCash is comprised of cash on deposit. Short-term investments are comprised of short-term debt instruments with terms to maturity of less than oneyear at acquisition.

(p) Net Asset Value per Share/ UnitThe Net Asset Value per share of each class of the Companies and the Net Asset Value per unit of the Trust are calculated at the end of each Valuation Date.A “Valuation Date” is the second Friday of each month and each Monthly Redemption Date and December Redemption Date (the “Annual Redemption Date”).The Net Asset Value per share/unit of each class of the Companies and Trust is calculated by dividing the total Net Asset Value of each class by itsshares/units outstanding. The Net Asset Value of each class is computed by calculating the value of that class's proportionate share of the respectiveCompany’s or Trust’s assets less that class's proportionate share of the respective Company’s or Trust’s common liabilities and less class specificliabilities. Expenses directly attributable to a class are charged to that class. Other income, expenses and gains (losses) are allocated to each classproportionately based upon the relative total Net Asset Value of each class.

(q) Income TaxesThe Companies comply with the requirements of the Income Tax Act (Canada) to qualify as a “mutual fund corporation”. A mutual fund corporationis subject to a special 33 1/3% tax on taxable dividends received from corporations’ resident in Canada and to tax at normal corporate rates applicableto mutual fund corporation on other income and net taxable realized capital gains for the year. The special 33 1/3% tax is refundable on payments oftaxable dividends to shareholders at the rate of $1 for each $3 of such dividend paid. All the tax on net taxable realized capital gains is refundablewhen the gains are distributed to shareholders as capital gains dividend or through redemption of shares at the request of shareholders, while eachof the Companies qualifies as a mutual fund corporation.



Temporary differences between the carrying value of assets and liabilities for accounting and income tax purposes give rise to future income tax assets and liabilities. When the market value of a security in the Companies exceeds its cost base, a future income tax liabilityarises. As capital gains taxes payable by the Companies are refundable under the provisions of the Income Tax Act (Canada), the future tax liabilityis offset by these future refundable taxes. If the cost base exceeds the market value of the security, a future income tax asset is generated. A fullvaluation allowance is taken to offset this asset given the uncertainty that such future assets will ultimately be realized. Future income tax liabilitiesor assets are calculated using substantively enacted tax rates expected to apply in the period that the temporary differences are expected toreverse.The Trust is a unit trust and deemed a financial institution for purposes of the 'specific debt obligation' and 'mark-to-market' rules containedin the Income Tax Act (Canada) at any time if more than 50% of the fair market value of all interest in the Trust are held at that time by one or more such financial institutions. The Trust will be subject to tax in each taxation year under Part 1 of the Income Tax Act (Canada) on the amount of itsincome for the year, including net realized and unrealized gains, if any, less the portion thereof that it deducts in respect of the amount paid or payableto unitholders in the year. The Trust intends to distribute all of its net income and net realized and unrealized gains so that the Trust will not generallybe liable for income tax thereon.

The Companies’ investment strategy utilizes a forward sale agreement “forward agreement” in order to gain exposure to the returns of an underlyingfund. The government refers to these as character conversion transactions.

On March 21, 2013, the Minister of Finance announced proposals in a federal budget that would treat the gain realized by a mutual fund under suchforward agreements as ordinary income rather than a capital gain, if the forward agreement was entered into or extended on or after March 21, 2013.

On July 11, 2013, the Department of Finance announced proposed technical changes to the transitional rules related to character conversiontransactions announced in the federal budget. One of the announced changes includes the extension of the transition period for short-termagreements. The extended grandfathered period allows investment funds, whose forward agreements were entered into prior to March 21, 2013 andthe terms of which provide for settlement or are a part of series of agreements that provide for settlement prior to 2015, to extend their forwardagreements until end of 2014. For longer-dated forward agreements, the grandfathering transitional period will not extend beyond March 21, 2018.Grandfathering is subject to certain growth rules with which the Companies intend to comply. The federal budget, part of Bill C-4, was enacted intolaw on December 12, 2013.

The Manager is currently assessing the impact and implications of these changes to the Companies.

To comply with the mark-to-market rules, during the year, the Trust issued a distribution which was automatically reinvested without charge, into theTrust. These units were immediately consolidated so that the number of units outstanding equalled the number of units outstanding immediately priorto the distribution.

(r) Use of EstimatesThe preparation of financial statements in accordance with Canadian GAAP requires management to make estimates and assumptions that affect thereported amounts of assets and liabilities at the reporting date and the reported amounts of income and expenses during the reporting period.Actual results could differ from those estimates.

3. SHAREHOLDERS’ AND UNITHOLDERS’ EQUITYTrident Performance Corp. Shares issued and outstanding represent the capital of the Company.

The relevant changes pertaining to subscription and redemption of the Company shares are disclosed in the Statements of Changes in Net Assets.In accordance with the objectives and risk management polices outlined in Note 12 the Company endeavors to invest subscriptions received inappropriate investments while maintaining sufficient liquidity to meet redemptions through utilizing a short-term borrowing facility or partialsettlement of the Forward Agreement.



The Company is authorized to issue an unlimited number of transferable and redeemable Class A and Class F Shares of the Company. Class F Sharesare convertible into Class A Shares at the last day of each month by delivering a notice and surrendering such Class F Shares by 4:00 p.m. (Torontotime) at least 20 business days prior to such Monthly Redemption Date. The Class A Shares and Class F Shares are referred to, collectively, as the“Shares”. Commencing in December 2009, shareholders are entitled to redeem their shares outstanding at the end of each month(the “Monthly Redemption”) or at the end of each year (the “Annual Redemption”). Monthly redemption price per Class A Share is equal to the lesserof, (a) 94% of the 15-day weighted average trading price of the Class A Shares preceding the applicable monthly redemption date, and (b) of the“closing market price” of Class A Shares on the applicable monthly redemption date less applicable redemption costs. The annual redemption priceper Class A Share is equal to net asset value per Class A Share as at the annual redemption date less any redemption costs.

Monthly redemption price per Class F Share is equal to the product of the monthly redemption price per Class A Share and a fraction of the mostrecently calculated net asset value per Class F Share over the most recently calculated net asset value per Class A Share. The annual redemptionprice per Class F Share is equal to the net asset value per Class F Share as at the annual redemption date less any redemption costs.

The Company is authorized to issue 100 Class M Shares. The holders of Class M Shares are not entitled to receive dividends. The holders of the ClassM Shares will be entitled to one vote per share. The Class M Shares are redeemable at the option of either the Company or a holder thereof at aprice of $1.00 per share. The Class M Shares rank subsequent to the Class A Shares and Class F Shares with respect to distributions on thedissolution, liquidation or winding-up of the Company.

For the years ended December 31, net capital transactions of Company consisted of the following:

Class A Class FShare Transactions 2013 2012 2013 2012Balance, beginning of year 726,110 1,013,460 6,000 11,000 Shares redeemed (126,050) ( 287,350) (1,000) ( 5,000)Balance, end of year 600,060 726,110 5,000 6,000

Trident Performance Corp. IIShares issued and outstanding represent the capital of the Company II.

The relevant changes pertaining to subscription and redemption of the Company II shares are disclosed in the Statements of Changes in Net Assets.In accordance with the objectives and risk management polices outlined in Note 12 the Company II endeavors to invest subscriptions received inappropriate investments while maintaining sufficient liquidity to meet redemptions through utilizing a short-term borrowing facility or settlement ofthe Forward Agreement when necessary.

The Company II is authorized to issue an unlimited number of Class A shares of the Company II.

The Company II is authorized to issue 100 shares of the Company II designated as Class M Shares (“Class M Shares”) of which, before giving effectto the Offering, there are 100 Class M Shares issued and outstanding. The holders of Class M Shares are not entitled to receive dividends. The holdersof the Class M Shares are entitled to one vote per share. The Class M Shares are redeemable at the option of either the Company II or a holder thereofat a price of $1.00 per share. The Class M Shares rank subsequent to the Class A Shares with respect to distributions on the dissolution, liquidationor winding-up of the Company II.

Shareholders are entitled to redeem their shares outstanding monthly (the “Monthly Redemption”) or on December 31 of any year (the “DecemberRedemption”). Monthly redemption price per share is equal to lesser of (a) 94% of the weighted average trading price of the shares on the TSX duringthe 15 trading days preceding the applicable monthly redemption date, and (b) the “closing market price” of the shares on the TSX on the applicablemonthly redemption date, less (c) applicable redemption costs. Annual redemption price per share is equal to net asset value per share determinedon the December redemption date less applicable redemption costs.



For the years ended December 31, net capital transactions of Company II consisted of the following:

Share Transactions 2013 2012Balance, beginning of year 1,245,245 1,544,415 Shares issued for cash – –Shares redeemed (391,950) ( 299,170)Balance, end of year 853,295 1,245,245

Trident Performance TrustThe relevant changes pertaining to subscription and redemption of the Trust units are disclosed in the Statements of Changes in Net Assets.In accordance with the objectives and risk management polices outlined in Note 12, the Trust endeavors to invest subscriptions received inappropriate investments while maintaining sufficient liquidity to meet redemptions through utilizing a short-term borrowing facility or disposal ofinvestments when necessary.

The Trust is authorized to issue an unlimited number of redeemable, transferable units (“Trust Units”), each of which represents an equal, undividedinterest in the net assets of the Trust.

For the years ended December 31, net capital transactions of the Trust consisted of the following:

Class A Class A IIUnit Transactions 2013 2012 2013 2012Balance, beginning of year 586,954 840,449 906,706 1,172,072Units issued for cash – – 151,263 –Units redeemed (90,192) ( 253,495) (344,801) ( 265,366)Balance, end of year 496,762 586,954 713,168 906,706

When shares/units of the Companies and Trust are redeemed at a price per share/unit which is lower than the average cost per share/unit of capital,the difference is included in “Contributed surplus” on the Statements of Net Assets. If the redemption price is greater than the average cost of capital,the difference is first charged to “Contributed surplus” until the entire account is eliminated, and the remaining amount is charged to “RetainedEarnings (Deficit)” in the Statements of Net Assets.

4. FEES AND OTHER EXPENSES(a) Management FeesCI Investments Inc. is the Manager of the Companies and in consideration for management fees provides management services required in theday-to-day operations. The Companies pay to the Manager an annual fee (the “Management Fee”) equal to 0.25% of the Net Asset Value of each of the Companies calculated and paid monthly, plus an amount equal to the service fees payable by to the Manager.

CI Investments Inc. is the Trustee and Manager of the Trust and in consideration of management fees provides management services required in theday-to-day operations. The Trust pays to the Trustee an annual fee (the “Management Fee”) equal to 1.10% of the Net Asset Value of the Trust,calculated and paid monthly.



(b) Performance FeesThe Trust pays to the Trustee a performance fee (the “Performance Fee”) calculated as at December 31 of each year. The performance fee will be anamount for each unit of the Trust then outstanding equal to 20% of the amount by which the net asset value per unit of the Trust exceeds theThreshold Amount. The Threshold Amount is the greater of (i) the Net Asset Value per unit of the Trust immediately following the closing of theOffering, and (ii) the net asset value per unit of the Trust on the most recent date that the performance fee was paid to the Trustee.

(c) Administrative Expenses The Companies and the Trust are also responsible for all expenses incurred in connection with their operations and administration (fees shown asadministration fees include: transfer agency, custody and accounting fees). Audit fees, legal fees and independent review committee fees aredisclosed separately.

(d) Service FeesThe Companies pays the Manager an annual service fee (the “Service Fee”) equal to 0.40% of the Net Asset Value per Class A Share for all Class AShares then outstanding, calculated and paid quarterly. The Manager will pay a comparable service fee to investment dealers on a pro rata basisbased on the respective number of Class A Shares held by clients of the sales representatives of such dealers.

(e) Advisory FeesA portion of the Management Fee received by the Trustee will be paid to the Investment Advisor by the Trustee.

(f) Forward FeesThe Companies each pay to the Counterparty under the Forward Agreement a fee of 0.50% per annum of the Net Asset Value of an applicable numberof units of the Trust.

5. SECURITIES LENDINGThe Companies and the Trust may engage into a securities lending. The amounts for securities loaned and the collateral received is disclosed in theStatements of Net Assets as “Cash collateral received (payable) for securities on loan” and income from securities lending is included in “Securitieslending” in the Statements of Operations. As at December 31, 2013 and 2012 the Companies and the Trust were not engaged in securities lending.

6. INCOME TAX LOSSES CARRY FORWARDNet capital losses may be carried forward indefinitely to reduce future net realized capital gains. Non-capital losses arising in taxation years after2005 may be carried forward twenty years. Non-capital losses carried forward may reduce future taxable income.



Trident Performance Corp. Losses carry forwards (in $000’s)

2013Net capital losses carry forward 2,859

Year of expiry 2015 2026 2027 2028 2029 2030 2031 2032 2033 TotalNon-capital losses carry forward – – – 712 842 – – 534 75 2,163

Trident Performance Corp. II Losses carry forwards (in $000’s)

2013Net capital losses carry forward 7,296

Year of expiry 2015 2026 2027 2028 2029 2030 2031 2032 2033 TotalNon-capital losses carry forward – – – – – – 350 705 674 1,729

Trident Performance TrustLosses carry forwards (in $000’s)

2013Net capital losses carry forward – –

Year of expiry 2015 2026 2027 2028 2029 2030 2031 2032 2033 TotalNon-capital losses carry forward – – – – 118 5,275 – 67 2,110 7,570

7. BROKERAGE AND OTHER COMMISSIONSCommissions paid for security transactions during the years ended December 31, were as follows:

2013 2012(in $000’s) (in $000’s)

Brokerage CommissionsTrident Performance Corp. – –Trident Performance Corp. II – –Trident Performance Trust 30 19

Soft Dollar Commissions†

Trident Performance Corp. – –Trident Performance Corp. II – –Trident Performance Trust 130 161

†A portion of brokerage commissions paid was used to cover research and market data services, termed soft dollar commissions. These amounts have been estimated by

the Manager.



8. NET ASSETS COMPARISONIn accordance with National Instrument 81-106, a comparison of net assets per share/unit and net asset value per share/unit as at December 31, is asfollows:

Trident Performance Corp. Class A Class F2013 ($) 2012 ($) 2013 ($) 2012 ($)

Net assets per share 10.84 11.03 11.35 11.50 Net asset value per share 10.84 11.04 11.35 11.51

Trident Performance Corp. II Class A2013 ($) 2012 ($)

Net assets per share 8.40 8.60Net asset value per share 8.41 8.62

Trident Performance Trust Class A Class A II2013 ($) 2012 ($) 2013 ($) 2012 ($)

Net assets per unit 12.69 12.87 9.66 9.80 Net asset value per unit 12.75 12.86 9.72 9.80

9. RELATED PARTY TRANSACTIONSThe Bank of Nova Scotia has a significant interest in CI Financial Corp., the parent company of the Manager/Trustee. The Companies and the Trustmay have direct or indirect holdings in The Bank of Nova Scotia and/or CI Financial Corp. as identified in the Statement of Investment Portfolio of theCompanies and of the Trust, if applicable.

During the period ended December 31, 2013, the Trust paid $3,560 of custody fees to The Bank of Nova Scotia.

10. INTERNATIONAL FINANCIAL REPORTING STANDARDSOn December 12, 2011 the Canadian Accounting Standards Board (“AcSB”) allowed investment funds to defer mandatory adoption of InternationalFinancial Reporting Standards (“IFRS”) as issued by the International Accounting standards Board (“IASB”) until the fiscal year beginning on or afterJanuary 1, 2014. Accordingly, the Trust and the Companies will adopt IFRS for its fiscal year beginning January 1, 2014, and will issue financialstatements in accordance with IFRS, including comparative information, for the semi-annual period ending June 30, 2014. The June 30, 2014 semi-annual and December 31, 2014 annual financial statements will include an opening Statement of Net Assets as at January 1, 2013 and comparativefinancial information prepared in accordance with IFRS.

The Manager has evaluated the differences between Canadian GAAP and IFRS and implemented a transition plan to meet the AcSB implementationtimeline. Based on the Manager’s analysis to date, the adoption of IFRS may impact the Trust’s and the Companies’ Net Assets with the potentialelimination of the difference between the Net Assets per Unit and the Net Asset Value per Unit at the financial statement reporting date, as disclosed inNote 8 – Net Assets Comparison. The changeover to IFRS will also result in additional note disclosures and may result in the presentation of Net Assetsrepresenting unitholders’ equity as a liability instead of the current presentation as equity depending on Trust’s and the Companies’ meeting certain criteria.

The Manager’s current evaluation may be subject to changes due to issuance of new standards or new interpretations of existing standards.

11. FINANCIAL INSTRUMENTS The categorization of financial instruments is as follows: investments and derivatives are classified as held for trading and are stated at fair value. Receivablefor securities sold, dividends and accrued interest receivable, margin for short sales and other receivables are designated as loans and receivables. They arerecorded at amortized cost which approximates their fair value due to their short-term nature. Similarly, payable for unit/share redemptions, payable forsecurities purchased, management fees payable, accrued expenses, service fees payable, forward fee payable, spread fee payable, performance fees payable,dividend payable on securities sold short and interest payable on securities sold short are designated as financial liabilities and are carried at their amortizedcost which approximates their fair value, due to their short-term nature. Financial liabilities are generally settled within three months.



12. FINANCIAL INSTRUMENTS RISK Risk ManagementThe Companies and the Trust are exposed to a variety of financial instruments risks: credit risk, liquidity risk and market risk (including interest raterisk, currency risk and other price risk). The level of risk to which the Companies and the Trust are exposed to depends on the investment objectiveand the type of investments held by the Companies and the Trust. The value of the investments within the portfolio can fluctuate daily as a result ofchanges in prevailing interest rates, economic and market conditions and company specific news related to investments held by the Companies andthe Trust. The Manager of the Companies and the Trust may minimize potential adverse effects of these risks on the Companies’ and the Trust’sperformance by, but not limited to, regular monitoring of the Companies’ and the Trust’s positions and market events, diversification of the investmentportfolio by asset type, country, sector, term to maturity within the constraints of the stated objectives, and through the usage of derivatives to hedgecertain risk exposures.

Other Price RiskOther price risk is the risk that the value of financial instruments will fluctuate as a result of changes in market prices (other than those arising frominterest rate risk or currency risk). The value of each investment is influenced by the outlook of the issuer and by general economic and politicalconditions, as well as industry and market trends. All securities present a risk of loss of capital. Except for options written, future contracts andinvestments sold short, the maximum risk resulting from financial instruments is equivalent to their fair value.

Other assets and liabilities are monetary items that are short-term in nature and therefore are not subject to significant other price risk.

Interest Rate RiskInterest rate risk is the risk that the fair value of interest-bearing investments and interest rate derivative instruments will fluctuate due to changesin prevailing levels of market interest rates. As a result, the value of the Companies or the Trust will be affected by changes in applicable interestrates as they invest in debt securities and income trusts. If interest rates fall, the fair value of existing debt securities may increase due to the increasein yield. Alternatively, if interest rates rise, the yield of existing debt securities decrease which may then lead to a decrease in their fair value. The magnitude of the decline will generally be greater for long-term debt securities rather than for short-term debt securities.

Interest rate risk also applies to convertible securities. The fair value of these securities varies inversely with interest rates, similar to other debtsecurities. However, since they may be converted into common shares, convertible securities are generally less affected by interest rate fluctuationsthan other debt securities.

Currency RiskCurrency risk arises from financial instruments that are denominated in a currency other than the Canadian dollar, the functional currency of theCompanies or the Trust. As a result, the Trust may be exposed to the risk that the value of securities denominated in other currencies will fluctuatedue to changes in exchange rates. The Statement of Investment Portfolio identifies all bonds and derivative instruments denominated in foreigncurrencies. Equities traded in foreign markets are exposed to currency risk as the prices denominated in foreign currencies are converted to the Trust’sfunctional currency to determine their fair value.

Credit RiskCredit risk is the risk that a security, issuer or counterparty to a financial instrument will fail to meet its financial obligations. The fair value of debtinstruments includes consideration of the credit worthiness of the debt issuer. Credit risk exposure for derivative instruments is based on the Trust’sunrealized gain of the contractual obligations with the counterparty as at the reporting date.

The credit risk exposure of the Companies’ and the Trust’s other assets are represented by their carrying amount as disclosed in the Statements ofNet Assets.

Credit ratings for fixed income securities, preferred securities and derivative instruments are obtained from Standard & Poor’s, where available,otherwise ratings are obtained from: Moody's Investors Service, Dominion Bond Rating Services or Canadian Bond Rating Services.

Credit ratings can be either long-term or short-term. Short-term credit ratings are generally assigned to those obligations and derivative instrumentsconsidered short-term in nature.



The table below provides a cross-reference between the long-term credit ratings disclosed in the Credit Rating table inclusive of the short-term creditratings disclosed in the derivatives schedules in the Statement of Investment Portfolio.

Credit Rating as per Credit Risk table Credit Rating as per derivatives schedulesAAA/Aaa/A++ A-1+AA/Aa/A+ A-1, A-2, A-3A B, B-1BBB/Baa/B++ B-2BB/Ba/B+ B-3B CCCC/Caa/C++ -CC/Ca/C+ -C and Lower DNot Rated WR

Significant cash balances as disclosed in the Statements of Net Assets are maintained by the Custodian, RBC Investor Services Trust. The Managermonitors the credit worthiness of the custodian on a regular basis.

All transactions executed by the Companies and the Trust in listed securities are settled / paid for upon delivery using approved brokers. The risk ofdefault is considered minimal, as delivery of securities sold is only made once the broker has received payment. Payment is made on a purchase oncethe securities have been received by the broker. The trade will fail if either party fails to meet its obligation.

Liquidity RiskLiquidity risk is the risk that the Companies or the Trust may not be able to settle or meet their obligations, on time or at a reasonable price.The Companies are exposed to monthly and annual cash redemptions of redeemable shares. To finance redemptions the Companies will partially settlethe forward agreements. The Trust is exposed to daily cash redemption of redeemable units. Therefore, the Trust aims to invest the majority of its assetsin investments that are traded in active markets and can be readily disposed of. In addition, the Trust aims to retain sufficient cash and cash equivalentpositions to maintain liquidity. From time to time, the Trust may enter into derivative contracts or invest in unlisted securities that may not trade in anorganized market and may be illiquid. Illiquid securities are identified in the Statement of Investment Portfolio of the Trust, if applicable.

Fair Value HierarchyThe Companies and the Trust are required to classify financial instruments measured at fair value using a fair value hierarchy. Investments whosevalues are based on quoted market prices in active markets are classified as Level 1. This level may include publicly traded equities, exchange tradedand retail mutual funds, exchange traded warrants, futures contracts, traded options, American depositary receipts (“ADRs”) and Global depositaryreceipts (“GDRs”).

Financial instruments that trade in markets that are not considered to be active but are valued based on quoted market prices, dealer quotations oralternative pricing sources supported by observable inputs are classified as Level 2. These may include fixed income securities, mortgage backedsecurities (“MBS”), short-term instruments, non-traded warrants, over-the-counter options, structured notes of indexed securities, foreign currencyforward contracts and swap instruments.

Investments classified as Level 3 have significant unobservable inputs. Level 3 instruments may include private equities, private term loans, privateequity funds and certain derivatives. As observable prices are not available for these securities, the Companies and the Trust may use a variety ofvaluation techniques to derive the fair value.

Details of the Companies’ and the Trust’s exposure to financial instruments risks including the fair value hierarchy classification are available in the“Company and Trust Specific Financial Instruments Risks” section of the financial statements.



Manager and TrusteeCI Investments Inc.2 Queen Street East, 20th Floor

Toronto, Ontario

M5C 3G7

Phone: (416) 364-1145

Fax: (416) 364-6299

Toll Free: 1-800-268-9374

www.ci.com

[email protected]

CustodianRBC Investor Services Trust155 Wellington Street West

5th Floor

Toronto, Ontario

M5V 3L3

AuditorPricewaterhouseCoopers LLP18 York Street

Suite 2600

Toronto, Ontario

M5J 0B2

Registrar & Transfer AgentComputershare Investor Services Inc.100 University Avenue

8th Floor

Toronto, Ontario

M5J 2Y1

ListedThe Toronto Stock Exchange

Ticker SymbolTCP TCZ

For more information on the Companies and Trust, visit us online at www.ci.com.

Companies and Trust Information

TridentPerf_AR_03/14

2 Queen Street East, Twentieth Floor, Toronto, Ontario M5C 3G7 I www.ci.comHead Office / Toronto416-364-1145 1-800-268-9374

Calgary 403-205-43961-800-776-9027

Montreal 514-875-00901-800-268-1602

Vancouver 604-681-33461-800-665-6994

Client Services English: 1-800-563-5181French: 1-800-668-3528

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