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)
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2CIBC 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.
4Key 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
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9Portfolio 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
10CIBC 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.
11Portfolio 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
12CIBC 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.
13Advantages 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.
14How 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.
15Distance 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.
17How does CI M.A.X. Deposit Notes determine
exposure? CIBC CI M.A.X. Deposit Notes, Portfolio
Series Growth Note, S5 (contd)
18How does CI M.A.X. Deposit Notes determine
exposure? CIBC CI M.A.X. Deposit Notes, Portfolio
Series Growth Note, S5 (contd)
19Protection 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.
20Identifying 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.
21Building 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
22Summary 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.
23Advisor 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
24Advisor 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