[in thousands of Canadian dollars, except per share amounts] 

## December 31, 2012 and 2011 

## 4. OTHER ASSETS, INCOME AND EXPENSE 

Other assets consists mainly of an investment in a limited partnership, long-term accounts receivable, deferred charges and loans advanced to employees, shareholders and investment advisors. 

CI has an employee share purchase loan program for key employees. These loans are renewable yearly and bear interest at prescribed rates. As at December 31, 2012, the carrying amount of employee share purchase loans is $9,162 [December 31, 2011 - $10,450] and is included in other assets. These loans become due immediately upon termination of employment or sale of the shares that are held as collateral. As at December 31, 2012, the shares held as collateral have a market value of approximately $16,651 [December 31, 2011 - $16,941]. 

Other assets include shareholder loans in the amount of $3,054 as at December 31, 2012 [December 31, 2011 - $3,185] issued primarily to investment advisors. These amounts are secured primarily by common shares of CI that are held as collateral. These loans become due immediately either on termination of the advisor relationship or upon the sale of CI shares that are held as collateral. As at December 31, 2012, the shares held as collateral have a market value of approximately $3,769 [December 31, 2011 - $3,190]. 

CI has a hiring and retention incentive program whereby loans are extended to current investment advisors. These loans are initially recorded at their fair value, may bear interest at prescribed rates and are contractually forgiven on a straight-line basis over the applicable contractual period, which varies in length from three to seven years. CI utilizes the effective interest rate method to amortize the forgiven amount. The forgiven amount is included in selling, general and administrative expenses. As at December 31, 2012, loans to investment advisors of $3,670 [December 31, 2011 - $1,576] are included in other assets. These loans become due on demand upon termination or breach in the terms of the agreements. 

Other income consists mainly of fees received for the administration of third party mutual funds, custody fees, equity income, foreign exchange gains (losses) and interest income. Other expenses consist mainly of distribution fees to limited partnerships, legal settlements, amortization of debenture transaction costs and capital taxes. 

