CI Mutual Funds Inc. has retained Waterfall Investments Inc. as a sub-advisor to several Canadian small-cap portfolios, effective immediately.

The agreement follows the decision by portfolio manager Peter Hodson to leave CI Funds and join Waterfall. Under the agreement, Hodson continues
to manage the same portfolios as he did at CI, including Signature Canadian Small Cap Class, CI Explorer Fund and portions of the portfolios of Synergy Canadian Style Management Class, Synergy Canadian Tactical Asset Allocation Fund and Synergy Extreme Canadian Equity Fund.

Hodson has managed the $46 million Signature Canadian Small Cap Class (formerly Synergy Canadian Small Cap Class) since its inception in December 1997 and the $248 million CI Explorer Fund since December 2003. In managing Signature Canadian Small Cap Class, Hodson has achieved a five-year average annual compound return of 10.4%, including a calendar year return of 42.4% in 2003.

Hodson joined CI from Synergy Mutual Funds, which CI acquired in October 2003. Waterfall is a Toronto-based investment management firm with a
seasoned team of investment managers and analysts that includes president and CEO Andrew McCreath, formerly a portfolio manager at Synergy Mutual Funds.