CIBC CI M.A.X. Deposit NotesTM,, Portfolio Series Growth Note, S5 (CBL 311) CIBC CI M.A.X. Deposit NotesTM,, Portfolio Series Income Note, S6 (CBL 312) - PowerPoint PPT Presentation

1 / 25
About This Presentation
Title:

CIBC CI M.A.X. Deposit NotesTM,, Portfolio Series Growth Note, S5 (CBL 311) CIBC CI M.A.X. Deposit NotesTM,, Portfolio Series Income Note, S6 (CBL 312)

Description:

This presentation is not an offer or a solicitation of an offer or a ... Hesitant to lock in long-term rates at current levels ... – PowerPoint PPT presentation

Number of Views:100
Avg rating:3.0/5.0
Slides: 26
Provided by: CBu5
Category:

less

Transcript and Presenter's Notes

Title: CIBC CI M.A.X. Deposit NotesTM,, Portfolio Series Growth Note, S5 (CBL 311) CIBC CI M.A.X. Deposit NotesTM,, Portfolio Series Income Note, S6 (CBL 312)


1
(No Transcript)
2
CIBC CI M.A.X. Deposit NotesTM,, Portfolio
Series Growth Note, S5(CBL 311) CIBC CI
M.A.X. Deposit NotesTM,, Portfolio Series Income
Note, S6 (CBL 312)
Maximize Global Exposure, Income Protection
3
  • The information contained herein is confidential
    and for advisor use only. The information
    contained herein is not to be reproduced or
    distributed to the public or the press.
  • This presentation is not an offer or a
    solicitation of an offer or a recommendation to
    buy or sell any securities or financial
    instrument, nor shall it be deemed to provide
    investment, tax or accounting advice. The
    information contained herein is intended as a
    summary only and is qualified entirely by, and
    should be read in conjunction with, the more
    detailed information appearing in the Information
    Statements. Details regarding the dynamic
    allocation strategy, calculation and payment of
    interest,, the notional portfolio, repayment of
    principal at maturity and certain risk factors
    are contained in the Information Statements. Any
    examples in this presentation are included for
    illustrative purposes only and are not intended
    to predict actual results, which may differ
    substantially from those reflected herein.
  • CI, CI Investments design and Portfolio Series
    are registered trademarks of CI Investments Inc.
    and have been licensed for use by CIBC. M.A.X.
    Deposit Notes is a trademark of CIBC.

4
Key Features
  • Maximizes Benefits of Asset Allocation
  • Combines strategic asset allocation of the
    underlying Portfolio Series Fund, with dynamic
    asset allocation of the structure of the CI MAX
    deposit notes
  • Maximizes Performance through CPPI
  • Provides increased initial exposure to the
    underlying Funds with the with the potential for
    up to 200 exposure
  • Additional protection in downward markets
  • Identifying Potential Investors
  • These products are structured to appeal to many
    different types of investors

5
(No Transcript)
6
(No Transcript)
7
(No Transcript)
8
(No Transcript)
9
Portfolio Series Growth Fund
Portfolio Series Growth Fund is a strategically
global diversified portfolio that is comprised of
a selected group of CI mutual funds with
  • global equity investments and a small
    fixed-income component
  • an emphasis on long-term growth
  • lower long-term volatility due to exposure to
    different markets on a style-neutral basis.

Source CI Investments
Source PALTrak
Looking for global exposure choose the CIBC CI
M.A.X. Deposit Notes, Portfolio Series Growth
Note, S5
10
CIBC CI M.A.X. Deposit Notes, Portfolio Series
Growth Note, S5
  • MAXimizes Global Exposure and Performance
  • Underlying Fund Portfolio Series Growth Fund
  • 135 initial exposure to Portfolio Series Growth
    Fund (with the potential for 200 exposure)
    combined with a low cost notional loan facility
  • Reinvests 100 of any distributions in additional
    units of the Fund.
  • MAXimizes Protection
  • CIBC provides 100 principal protection at
    maturity, regardless of the performance of the
    Funds or the amount of leverage applied.
  • MAXimizes Value
  • Maximum portfolio fee of 2.40 on the Fund
    Account, with no fee on the Bond Account.
    Additional 35 exposure provided at 4.58 per
    annum.
  • Tax Efficient
  • Capital gains potential if sold prior to maturity
  • Interest income will not be taxed until it is
    paid at maturity.

As at October 23. 2006.
11
Portfolio Series Income Fund
Portfolio Series Income Fund is a strategically
diversified income portfolio that is comprised of
a selected group of CI mutual funds with
  • a reliable, sustainable income stream from
    holdings in bonds, mortgages and income trusts
  • a small equity component to provide stability and
    general moderate growth potential

Source CI Investments
Source PALTrak
Looking for income choose the CIBC CI M.A.X.
Deposit Notes, Portfolio Series Income Note, S6
12
CIBC CI M.A.X. Deposit Notes, Portfolio Series
Income Note, S6
  • MAXimizes Income and distributions
  • Underlying Fund Portfolio Series Income Fund
  • 150 initial exposure to Portfolio Series Income
    Fund (with the potential for 200 exposure).
  • 75 of ordinary distributions made by Portfolio
    Series Income Fund will be paid to investors on a
    monthly basis. Any excess and all other
    distributions will be reinvested in additional
    Units of the Fund.
  • Notes are expected to yield 5.57 per annum at
    inception.
  • The Notes could yield up to 7.5 per annum if the
    Portfolio Series Income Funds target
    distribution of 5 is achieved with 200 exposure
    to the Fund.
  • MAXimizes Protection
  • CIBC provides 100 principal protection at
    maturity, regardless of the performance of the
    Funds or the amount of leverage applied.
  • MAXimizes Value
  • Maximum portfolio fee of 2.75 on the Fund
    Account, 0.50 on the Bond Account. Additional
    50 exposure provided at 4.58 per annum.
  • Tax Efficient
  • Capital gains potential if sold prior to maturity
  • Interest income will not be taxed until it is
    paid at maturity.

As at October 23 , 2006, the indicated
distribution rate on the Fund was 4.95. There is
no guarantee that the Fund will achieve its
target yield or make any distributions, or that
the Deposit Notes will maintain 150 exposure.
Accordingly, the amount of interest paid for any
month during the term of the Deposit Notes will
likely vary and could be zero. As at October
23. 2006.
13
Advantages of CI M.A.X. Structure
  • Increased initial exposure to the underlying
    funds.
  • Portfolio Series Growth Note, S5 - 135 initial
    exposure to Portfolio Series Growth Fund
  • Portfolio Series Income Note, S6 150 initial
    exposure to the Portfolio Series Income Fund
  • With the potential for up to 200
  • In market conditions where the Funds perform
    well, additional exposure to the Funds may be
    achieved through a notional loan generating the
    potential for enhanced returns.
  • In market conditions where the Funds perform
    negatively, reduced exposure may dampen losses in
    an effort to allow participation in any
    subsequent recovery.
  • Low fees and interest charges help prolong Fund
    exposure by making the structure less prone to
    de-leveraging or allocating to Bonds.
  • 100 principal protection at maturity regardless
    of the performance of the Funds or the amount of
    leverage applied.

14
How Does CI M.A.X. Asset Allocation Work?
  • Constant Proportion Portfolio
    Insurance (CPPI) Structure
  • On the Issue Date, 135 per Portfolio Series
    Growth Note and 150 per Portfolio Series Income
    Note will be used to notionally purchase Units of
    the Funds.
  • The Deposit Notes will dynamically allocate
    between Units of the Funds in the Fund Account
    and Bonds in a Bond Account. The Portfolio will
    be rebalanced from time to time in accordance
    with pre-defined Portfolio Allocation Rules.
  • The leveraging or de-leveraging of the Fund
    Account will occur based on the Distance
    between the NAV of the Portfolio and the Floor
    Price (i.e., generally, the value of notional
    bonds maturing on the Maturity Date).
  • The dynamic allocation strategy provides
    increased initial exposure (with potential for
    200 exposure) to the Funds while still providing
    100 principal protection at maturity.
  • A reallocation will occur after a significant
    change in Distance has taken place.

15
Distance is the Benchmark for Re-balancing
Value
Dynamic leveraging strategy
Basket NAV
Distance
Principal Repayment
Initial Investment
Value ofNotional Bonds
Leveraging
Leveraging
Leveraging
-
Re
De
Time
Maturity
16

An example of how CI M.A.X. Deposit Notes
determine exposure?
  • With the CIBC CI M.A.X. Deposit Notes, Portfolio
    Series Growth Note, S5, when Target Exposure
    differs fromActual Exposure by more than 25,
    an Allocation Event will occur to bring Actual
    Exposure in line with Target Exposure.

17
How does CI M.A.X. Deposit Notes determine
exposure? CIBC CI M.A.X. Deposit Notes, Portfolio
Series Growth Note, S5 (contd)
18
How does CI M.A.X. Deposit Notes determine
exposure? CIBC CI M.A.X. Deposit Notes, Portfolio
Series Growth Note, S5 (contd)
19
Protection Event
  • A Protection Event would occur when the
    Distance falls to within 1.50 of the Floor,
    at which point the assets would become fully
    allocated to Bonds until maturity, regardless of
    the subsequent performance of the Fund.

20
Identifying Potential Investors
  • Would like to invest in a fixed-term product
  • Believe in principal-protected investments, but
    seek potential for higher returns
  • Who would like to invest in alternative
    investments who might not qualify to invest
    directly on their own
  • Believe in a buy-and-hold strategy.
  • Portfolio Series Growth Note, S5
  • Medium to long-term, risk-sensitive investors who
    are looking for global diversification
  • Seeking strong capital growth combined with the
    potential for leveraged exposure and capital
    protection at maturity
  • A diversified global equity portfolio which
    includes a small-fixed-income component.
  • Portfolio Series Income Note, S6
  • Hesitant to lock in long-term rates at current
    levels
  • Who are missing investment goals due to low
    interest rates
  • Seeking stable, predictable performance
  • Less conservative investors who are looking for a
    regular income stream with little portfolio risk
  • Those nearing retirement who are looking for
    potentially higher returns than fixed-income
    products.

21
Building your Business
  • Revenue
  • Investment solutions
  • GIC / fixed income alternative
  • Equity exposure
  • Enhanced yield and growth potential
  • Tax efficiency
  • High net worth
  • Asset gathering campaigns
  • Prospecting tool
  • Hedging tool

22
Summary of Terms
Issuer Canadian Imperial Bank of Commerce
Issue Date Portfolio Series Growth Note November 29, 2006 / Portfolio Series Income Note December 20, 2006
Maturity Date Portfolio Series Growth Note December 1, 2014 / Portfolio Series Income Note December 22, 2014
Subscription Size Subscription Price 100 per Deposit NoteMinimum Purchase 5,000 (50 Deposit Notes)
Structural Features Dynamic Allocation Strategy (CPPI Structure). Portfolio Series Growth Note, S5 Underlying Fund Portfolio Series Growth Fund 135 exposure on inception, potential for 200 exposure, 100 principal protection at maturity 100 of any distributions made by the Fund re-invested in the structure. Portfolio Series Income Note, S6 Underlying Fund Portfolio Series Income Fund 150 exposure on inception, potential for 200 exposure, 100 principal protection at maturity Monthly coupons equivalent to 75 ordinary distributions of the Fund (expected to equal 6.58 per annum at inception).
Fees Expenses Portfolio Series Growth Note, S5 Portfolio Fee 2.40 of Fund Account Value no fee on the Bond Account. Loan Facility Interest charged at 1-month BAs, plus 25 bps per annum. Portfolio Series Income Note, S6 Portfolio Fee 2.40 of Fund Account Value 0.75 of the Bond Account. Loan Facility Interest charged at 1-month BAs, plus 25 bps per annum. All fees and expenses calculated daily and payable monthly in arrears from assets in the Portfolio.
RRSP Eligibility 100 eligible for RRSPs, RRIFs, RESPs, DPSPs and LIRAs. CIBC offers client-name purchases for RRSP accounts only (no fees). All other registered plan purchases must be placed through a dealer or intermediary sponsored plan.
Secondary Market CIBC World Markets Inc. will maintain a secondary market for Deposit Notes (subject to availability). Early trading charge of up to 6.95 may apply on dispositions prior to maturity.
23
Advisor Compensation
  • Upfront Commission 5.00
  • Trailer 0.25 p.a. of Fund Account Value
  • FundSERV Codes
  • Portfolio Series Growth Note, S5 CBL 311
  • Portfolio Series Income Note, S6 CBL 312
  • 8-year term to maturity

24
Advisor Tools
  • PowerPoint Presentation
  • Green Sheet
  • Advisor Summary
  • Client Summary
  • Prospecting Letter
  • FAQs

25
  • THANK YOU
  • For more information please visit our website
  • www.ci.com/depositnotes
Write a Comment
User Comments (0)
About PowerShow.com