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Fund Facts
as at June 30, 2010
| Fund Codes | Class A | Corporate Class |
| ISC | CIG691 | CIG2310 |
| DSC | CIG891 | CIG3310 |
| LSC | CIG1891 | CIG1310 |
| Managed By: | CI Investments Inc. |
| Advisors: | Harbour Advisors |
| Assets Under Management: | $8,460.6 million |
| Portfolio Manager: | Gerald Coleman and Stephen Jenkins |
| Asset Class: | Canadian Balanced |
| Inception Date: | June 1997 |
| NAV: | $16.40 |
| Min. Initial Investment: | $500 |
| Subsequent Purchase(s): | $50 |
| Min. PAC Investment: | $50 |
| Management Expense Ratio: | 2.31% |
Top Holdings
as at June 30, 2010
| BHP Billiton Limited | - |
| Canadian National Railway | - |
| Cisco Systems | - |
| George Weston Ltd. | - |
| Intact Financial | - |
| JP Morgan Chase & Co. | - |
| Manulife Financial | - |
| Suncor Energy | - |
| TD Bank | - |
| Tim Hortons | - |
| Total | 31.87% |
Volatility Meter
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Based on 3-year standard deviation relative to other funds in its category, from Globe HySales. |
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Equity Style and Capitalization Overview
| Blend | Growth | Value | |
| Large | |||
| Mid | |||
| Small |
(Class A)
Harbour Growth & Income FundAlso available: Class F & I
Objective
This fund's objective is to obtain long-term total return through a prudent balance of income and capital appreciation. It invests primarily in equity and equity-related securities of mid- to large-capitalization Canadian companies and fixed income securities issued by Canadian governments and companies. The proportion of the fund's assets invested in equity and fixed income securities may vary according to market conditions. Any change to the investment objective must be approved by a majority of votes cast at a meeting of unitholders held for that reason.
Compound Returns and Quartile Rankings
as at June 30, 2010
This table shows the historical annual compound total return of the fund compared with the Globefund Group Average and Globefund's benchmark Blend: 50% S&P/TSX, 50% DEX Universe. The returns listed below are percentages.
| YTD | 1Mo | 3Mo | 1Yr | 3Yr | 5Yr | 10Yr | Since Inception* | |
| Qrtl | 4 | 4 | 4 | 4 | 2 | 2 | 1 | {N/A} |
| Return | -5.31 | -3.59 | -6.29 | 3.6 | -3.19 | 3.23 | 5.79 | 5.25 |
| Grp Avg | -2.79 | -2.11 | -4.81 | 7.65 | -3.09 | 2.13 | 3.67 | {N/A} |
| Ind Ret | 0.97 | -0.96 | -1.31 | 9.7 | 1.92 | 5.6 | 5.3 | {N/A} |
Performance Data
This chart shows you the fundīs annual performance and how an investment would have changed over time.
Current Value of a $10,000 Investment
Asset Class as at June 30, 2010
Equity Sectors as at June 30, 2010
Geographic Composition as at June 30, 2010
Fund Advisor Profile
Harbour Advisors was established in 1997 to provide above-average long-term returns by investing in easy-to-understand, quality businesses. Gerry Coleman, who has managed money for institutions and mutual funds for over 35 years, and Stephen Jenkins are the lead portfolio managers. The Toronto-based team manages more than $16 billion in assets.Commentary
As at June 30, 2010
Equity markets declined materially during the second quarter, erasing the gains of the early part of the year. This correction should have surprised no one, given that the S&P/TSX Composite Index advanced 65% from its lows in March 2009 to its high in April 2010, while the S&P 500 gained over 80%. We view the recent decline in stock prices as a normal correction in an ongoing bull market.
We believe a disconnect exists between stock markets and the real world economy, which has been expanding at a decent pace. It is only a matter of time before the equity markets pay heed to the growth in the economy and corporate earnings.
In response, since the end of 2009, we have drawn down our cash positions in Harbour Fund by roughly 10 percentage points, and by about eight percentage points in Harbour Growth & Income Fund. We have purchased attractively priced, high-quality equities. Existing holdings that have been increased include Cameco, Cisco Systems, Manulife Financial, and Microsoft. New holdings include Bank of America, JP Morgan and George Weston.
In global markets, concerns included the European sovereign debt crisis, signs of a slowing pace to growth within the Chinese economy, and the potential for a double-dip recession.
Harbour Foreign Equity fund reduced its cash position over the quarter to 17% from 22%. We took advantage of share price weakness to increase stakes in Air Liquide, Aryzta, General Electric, Grafton Group, MasterCard, Microsoft, and Trican Well Service. Four new holdings initiated during the quarter were leading U.S.-based banks JP Morgan and Bank of America, Canadian-based Suncor Energy, and Foster's Group, a leading beer and wine producer based in Australia.
Times like the present, when pessimism is so thick you could cut it with a knife, have proven to be times of significant opportunity for investors with a long-term time horizon. We believe the current period is one of those times.
Source: CTVglobemedia Publishing Inc.
Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. The indicated rates of return are the historical annual compounded total including changes in unit value and reinvestment of all distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any securityholder that would have reduced returns. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.