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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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.
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Key Features
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Maximizes Benefits of Asset Allocation
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Maximizes Performance through CPPI
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Combines strategic asset allocation of the underlying Portfolio
Series Fund, with dynamic asset allocation of the structure of
the CI MAX deposit notes
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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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.
Current Asset Mix
as of September 30, 2006
Canadian
Income
20.0%
Sector Allocation
as of September 30, 2006
Utilities 2.3%
Canadian
Equity 31.0%
Unclassified
2.3%
Consumer
Staples 6.8%
Telecom
Services 2.3%
Financials
25.1%
Health Care
7.4%
Materials 8.7%
Int'l Equity
21.0%
Source: CI Investments
Energy 15.1%
US Equity
28.0%
Industrials
9.8%
Info Tech 9.9%
Consumer
Discretionary
10.3%
Source: PALTrak
Looking for global exposure – choose the
CIBC CI M.A.X. Deposit Notes, Portfolio Series Growth Note, S5
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CIBC CI M.A.X. Deposit Notes,
Portfolio Series Growth Note, S5
MAXimizes Global Exposure and Performance
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Underlying Fund: Portfolio Series Growth Fund
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135% initial exposure to Portfolio Series Growth Fund (with the potential for 200% exposure) combined with a low
cost notional loan facility
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Reinvests 100% of any distributions in additional units of the Fund.
MAXimizes Protection
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CIBC provides 100% principal protection at maturity, regardless of the performance of the Funds or the amount of
leverage applied.
MAXimizes Value
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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.**
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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.
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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
Target Asset Mix
as of September 30, 2006
Asset Class Breakdown
as of September 30, 2006
Foreign Bond
20.4%
Int'l Equity, 5%
Cash 16.3%
US Equity, 5%
Canadian Bond
27.7%
Canadian
Equity, 20%
Canadian
Income, 55%
Other 1.8%
Global
Income, 15%
Source: CI Investments
Income Trust
10.0%
Preferred
Equity 2.0%
International
Equity 6.1%
Canadian
Equity 9.4%
US Equity 6.3%
Source: PALTrak
Looking for income – choose the
CIBC CI M.A.X. Deposit Notes, Portfolio Series Income Note, S6
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CIBC CI M.A.X. Deposit Notes,
Portfolio Series Income Note, S6
MAXimizes Income and distributions
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Underlying Fund: Portfolio Series Income Fund
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150% initial exposure to Portfolio Series Income Fund (with the potential for 200% exposure).
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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.
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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
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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.
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Advantages of CI M.A.X. Structure
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Increased initial exposure to the underlying funds.
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Portfolio Series Growth Note, S5 - 135% initial exposure to Portfolio Series Growth Fund
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Portfolio Series Income Note, S6 – 150% initial exposure to the Portfolio Series Income Fund
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With the potential for up to 200%
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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.
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In market conditions where the Funds perform negatively, reduced exposure may dampen losses in an
effort to allow participation in any subsequent recovery.
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Low fees and interest charges help prolong Fund exposure by making the structure less prone to deleveraging or allocating to Bonds.
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100% principal protection at maturity regardless of the performance of the Funds or the amount of
leverage applied.
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How Does CI M.A.X. Asset Allocation Work?
Constant Proportion Portfolio Insurance (CPPI) Structure
Initial Purchase
Initially, the assets
will be fully
allocated to Units of
the Fund
Fund Account
Assets will reallocate
according to the
dynamic allocation
strategy
Bond Account
• 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.
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“Distance” is the Benchmark for Re-balancing
Value
Dynamic leveraging strategy
Basket NAV
Distance
Re Leveraging
De Leveraging
Value of
Notional Bonds
Principal
Repayment
Leveraging
Initial
Investment
Time
Maturity
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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 from
“Actual Exposure” by more than 25%,
an Allocation Event will occur to
bring Actual Exposure in line with
Target Exposure.
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How does CI M.A.X. Deposit Notes determine exposure?
CIBC CI M.A.X. Deposit Notes, Portfolio Series Growth Note, S5 (cont’d)
Leveraging Scenario
Target Exposure exceeds
Actual Exposure by more
than 25%. Upper and low er
limits are reset from this point.
Actual Exposure is
brought in line w ith
Target Exposure
+25%
actual exposure
(new )
+25%
actual exposure
(initial)
-25%
-25%
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How does CI M.A.X. Deposit Notes determine exposure?
CIBC CI M.A.X. Deposit Notes, Portfolio Series Growth Note, S5 (cont’d)
De-Leveraging Scenario
+25%
actual exposure
(initial)
Actual Exposure is
brought in line with
Target Exposure
+25%
actual exposure
(new)
-25%
-25%
Target Exposure falls
below Actual Exposure by
more than 25%. Upper and
lower limits are reset.
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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.
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Identifying Potential Investors
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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
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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
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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 fixedincome products.
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Building your Business
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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
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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 Note
Minimum 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 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 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.
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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
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Advisor Tools
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PowerPoint Presentation
Green Sheet
Advisor Summary
Client Summary
Prospecting Letter
FAQs
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THANK YOU
For more information please visit our website:
www.ci.com/depositnotes
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