2Maximize Global Exposure, Income & Protection 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
3The 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 notesMaximizes Performance through CPPIProvides increased initial exposure to the underlying Funds with the with the potential for up to 200% exposureAdditional protection in downward marketsIdentifying Potential InvestorsThese products are structured to appeal to many different types of investors
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 componentan emphasis on long-term growthlower long-term volatility due to exposure to different markets on a style-neutral basis.Source: CI InvestmentsSource: PALTrakLooking for global exposure – choose theCIBC 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 PerformanceUnderlying Fund: Portfolio Series Growth Fund135% initial exposure to Portfolio Series Growth Fund (with the potential for 200% exposure) combined with a low cost notional loan facilityReinvests 100% of any distributions in additional units of the Fund.MAXimizes ProtectionCIBC provides 100% principal protection at maturity, regardless of the performance of the Funds or the amount of leverage applied.MAXimizes ValueMaximum 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 maturityInterest income will not be taxed until it is paid at maturity.** As at October
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 trustsa small equity component to provide stability and general moderate growth potentialSource: CI InvestmentsSource: PALTrakLooking for income – choose theCIBC 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 distributionsUnderlying Fund: Portfolio Series Income Fund150% 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 Fund’s target distribution of 5% is achieved with 200% exposure to the Fund.MAXimizes ProtectionCIBC provides 100% principal protection at maturity, regardless of the performance of the Funds or the amount of leverage applied.MAXimizes ValueMaximum 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 maturityInterest 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
13Advantages of CI M.A.X. Structure Increased initial exposure to the underlying funds.Portfolio Series Growth Note, S % initial exposure to Portfolio Series Growth FundPortfolio Series Income Note, S6 – 150% initial exposure to the Portfolio Series Income FundWith 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) StructureOn 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 ValueDynamic leveraging strategyBasket NAVDistanceInitialInvestmentPrincipalRepaymentValue of Notional BondsLeveragingDynamic Leveraging StrategyThe return of the Deposit Notes will be determined by the performance of the “Basket”.The Basket consists of 2 assets classesShares of the Signature Income and Growth andNotional Bond portfolio.LeveragingLeveraging-ReDeTimeMaturity
16An 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 from “Actual Exposure” by more than 25%, an Allocation Event will occur to bring Actual Exposure in line with Target Exposure.The allocation between these two asset classes is dynamic throughout the term of the Deposit Note. It depends on the distance (Dt) between the Basket NAV and the theoretical zero-coupon bond;the greater the distance, the Basket allocates greater percentage of assets to the Shares of Fund.Allocation based on “Target” vs. “Actual” ExposureThe Target Exposure at anytime is 5 × Distance. This relationship is shown in the table below. The Actual Exposure at anytime is the most recently set exposure, which is initially set at 105.3% (Initial investment of $100 divided by NAV of $95). The Distance is derived using the following formula: Distance = (NAV – Bond) / NAV.Here’s how it works: When the Target Exposure differs from the Actual Exposure by more than +/-25%, a reallocation will occur to bring the Actual exposure in line with the Target exposure. In other words, the Target exposure must change by more than 25% in either direction in order to trigger a reallocation.After a reallocation has taken place, the upper and lower limits are reset, which means the Target exposure would then have to deviate from the newly established Actual exposure by more than +/-25% in order to trigger the next reallocation event.Please refer to the diagram.Benefits of New structure:§ Promotes income stability since reallocation is less frequent.Takes emotion out of investing and allows the Fund more time to develop a meaningful trend before
17How does CI M. A. X. Deposit Notes determine exposure. CIBC CI M. A. X How does CI M.A.X. Deposit Notes determine exposure? CIBC CI M.A.X. Deposit Notes, Portfolio Series Growth Note, S5 (cont’d)
18How does CI M. A. X. Deposit Notes determine exposure. CIBC CI M. A. X How does CI M.A.X. Deposit Notes determine exposure? CIBC CI M.A.X. Deposit Notes, Portfolio Series Growth Note, S5 (cont’d)
19Protection EventA “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.The diagram above demonstrates negative performance of the Fund, and the resulting return of the hypothetical Deposit Notes with the Coupon Option.* Because the Portfolio is gradually de-levered and invested in Bonds as the Deposit Note’s NAV falls in value, the actual value of the Units can fall significantly before a Protection Event occurs.* A Protection Event occurs in Year 5 when the “Distance” falls to less than 1.5% of the NAV of the Deposit Note, at which point the Portfolio would remain fully invested in Bonds until maturity regardless of the subsequent performance of the Fund.* In this example, a direct investment in Units of the Fund would not have returned its original value after eight years; whereas an investment in the Deposit Notes would have paid monthly coupons of $9.21 over the term, and a Final Variable Payment of $1.49 and the initial investment of $100 per Deposit Note on the Maturity Date.
20Identifying Potential Investors Would like to invest in a fixed-term productBelieve in principal-protected investments, but seek potential for higher returnsWho would like to invest in alternative investments who might not qualify to invest directly on their ownBelieve in a buy-and-hold strategy.Portfolio Series Growth Note, S5Medium to long-term, risk-sensitive investors who are looking for global diversificationSeeking strong capital growth combined with the potential for leveraged exposure and capital protection at maturityA diversified global equity portfolio which includes a small-fixed-income component.Portfolio Series Income Note, S6Hesitant to lock in long-term rates at current levelsWho are missing investment goals due to low interest ratesSeeking stable, predictable performanceLess conservative investors who are looking for a regular income stream with little portfolio riskThose nearing retirement who are looking for potentially higher returns than fixed-income products.
21Building your Business RevenueInvestment solutionsGIC / fixed income alternativeEquity exposureEnhanced yield and growth potentialTax efficiencyHigh net worthAsset gathering campaignsProspecting toolHedging 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, 2006Maturity DatePortfolio Series Growth Note: December 1, 2014 / Portfolio Series Income Note: December 22, 2014Subscription SizeSubscription Price: $100 per Deposit Note Minimum Purchase: $5,000 (50 Deposit Notes)Structural FeaturesDynamic Allocation Strategy (CPPI Structure).Portfolio Series Growth Note, S5:Underlying Fund: Portfolio Series Growth Fund135% exposure on inception, potential for 200% exposure, 100% principal protection at maturity100% of any distributions made by the Fund re-invested in the structure.Portfolio Series Income Note, S6:Underlying Fund: Portfolio Series Income Fund150% exposure on inception, potential for 200% exposure, 100% principal protection at maturityMonthly coupons equivalent to 75% ordinary distributions of the Fund (expected to equal 6.58% per annum at inception).Fees & ExpensesPortfolio Fee: 2.40% of Fund Account Value; no fee on the Bond Account.Loan Facility: Interest charged at 1-month BA’s, plus 25 bps per annum.Portfolio Fee: 2.40% of Fund Account Value; 0.75% of the Bond Account.All fees and expenses calculated daily and payable monthly in arrears from assets in the Portfolio.RRSP Eligibility100% 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 MarketCIBC 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 ValueFundSERV Codes:Portfolio Series Growth Note, S5 – CBL 311Portfolio Series Income Note, S6 – CBL 3128-year term to maturity