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2 CIBC CI M.A.X. Deposit Notes TM,, Portfolio Series Growth Note, S5 (CBL 311) CIBC CI M.A.X. Deposit Notes TM,, Portfolio Series Income Note, S6 (CBL.

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Presentation on theme: "2 CIBC CI M.A.X. Deposit Notes TM,, Portfolio Series Growth Note, S5 (CBL 311) CIBC CI M.A.X. Deposit Notes TM,, Portfolio Series Income Note, S6 (CBL."— Presentation transcript:

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2 2 CIBC CI M.A.X. Deposit Notes TM,, Portfolio Series Growth Note, S5 (CBL 311) CIBC CI M.A.X. Deposit Notes TM,, Portfolio Series Income Note, S6 (CBL 312) Maximize Global Exposure, Income & Protection

3 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 4 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 Key Features

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9 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 InvestmentsSource: PALTrak Looking for global exposure – choose the CIBC CI M.A.X. Deposit Notes, Portfolio Series Growth Note, S5

10 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

11 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 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 Fund’s 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

13 13 Advantages of CI M.A.X. Structure Increased initial exposure to the underlying funds. Portfolio Series Growth Note, S % 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 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 15 Time Value Principal Repayment Basket NAV Value of Notional Bonds Re Leveraging Maturity De - Leveraging Distance Dynamic leveraging strategy Initial Investment “Distance” is the Benchmark for Re-balancing

16 16 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. An example of how CI M.A.X. Deposit Notes determine exposure?

17 17 How does CI M.A.X. Deposit Notes determine exposure? CIBC CI M.A.X. Deposit Notes, Portfolio Series Growth Note, S5 (cont’d)

18 18 How does CI M.A.X. Deposit Notes determine exposure? CIBC CI M.A.X. Deposit Notes, Portfolio Series Growth Note, S5 (cont’d)

19 19 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. Protection Event

20 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 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 22 Summary of Terms IssuerCanadian Imperial Bank of Commerce Issue DatePortfolio Series Growth Note: November 29, 2006 / Portfolio Series Income Note: December 20, 2006 Maturity DatePortfolio Series Growth Note: December 1, 2014 / Portfolio Series Income Note: December 22, 2014 Subscription 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 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 & ExpensesPortfolio 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 BA’s, 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 BA’s, plus 25 bps per annum. 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.

23 23  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 Advisor Compensation

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

25 25 THANK YOU For more information please visit our website:


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