CIBC Managed Aggressive Growth Portfolio. Annual Management Report of Fund Performance

Transcription

1 CIBC Managed Aggressive Growth Portfoio Annua Management Report of Fund Performance for the financia year ended December 31, 2015 A figures are reported in Canadian doars uness otherwise noted This annua management report of fund performance contains financia highights but does not contain the compete annua financia statements of the investment fund If you have not received a copy of the annua financia statements with this annua management report of fund performance, you can get a copy of the annua financia statements at your request, and at no cost, by caing us to-free at , by writing to us at CIBC, 18 York Street, Suite 1300, Toronto, Ontario, M5J 2T8, or by visiting wwwcibccom/mutuafunds or the SEDAR website at wwwsedarcom Unithoders may aso contact us using one of these methods to request a copy of the investment fund s proy voting poicies and procedures, proy voting discosure record, or quartery portfoio discosure Management Discussion of Fund Performance Investment Objective and Strategies Investment Objective: CIBC Managed Aggressive Growth Portfoio (the Portfoio) seeks to create a diversified portfoio by aocating its investments across a baanced bend of asset casses Within the asset casses, the Portfoio wi invest primariy in Mutua Funds incuding savings, income, and growth funds (the Underying Funds) The Portfoio wi focus on ong-term capita growth Investment Strategies: The Portfoio empoys a ong-term strategic asset mi weighting among the Underying Funds of 10% income and 90% growth funds Whie the asset mi of the Portfoio is not generay activey managed, a review and change of the strategic asset mi may be necessary in order to meet the investment objective The Portfoio may aso rebaance the mi of the Underying Funds to reaign the weightings within the strategic asset mi Risk The Portfoio is a goba equity portfoio that is suitabe for ong-term investors who can toerate medium investment risk For the period ended December 31, 2015, the Portfoio s overa eve of risk remains as discussed in the simpified prospectus Resuts of Operations The portfoio advisor of the Portfoio is CIBC Asset Management Inc (CAMI or the Portfoio Advisor) The commentary that foows provides a summary of the resuts of operations for the period ended December 31, 2015 A doar figures are epressed in thousands, uness otherwise indicated The Portfoio's net asset vaue increased by 18% during the period, from $191,688 as at December 31, 2014 to $225,695 as at December 31, 2015 Net saes of $14,264 and positive investment performance resuted in an overa increase in net asset vaue Cass A units of the Portfoio posted a return of 101% for the period The Portfoio s primary benchmark is the MSCI Word Inde (the primary benchmark), which returned 195% for the same period The Portfoio's bended benchmark (the bended benchmark) comprises 21% S&P 500 Inde, 20% S&P/TSX Composite Inde, 13% MSCI EAFE Inde, 11% Russe 3000 Vaue Inde, 10% FTSE TMX Canada Universe Bond Inde, 8% MSCI Europe Inde, 6% FTSE EPRA/NAREIT Deveoped Rea Estate Inde, 6% MSCI Emerging Markets Inde and 5% MSCI A Country Asia Pacific Inde The bended benchmark returned 43% for the same period The bended benchmark cosey refects the asset casses in which the Portfoio invests It wi provide a more usefu comparative to the performance of the Portfoio The Portfoio s return is after the deduction of fees and epenses, unike the primary and bended benchmarks See Past Performance for the returns of other casses of units offered by the Portfoio The Portfoio has target aocations of 320% internationa equities, 320% US equities, 200% Canadian equities, 100% Canadian fied income securities and 60% emerging markets equities During the period, the Portfoio outperformed the bended benchmark China s economic sowdown resuted in ower demand for European industria and manufacturing eports, whie ow commodity prices negativey affected earnings growth for many of Europe s industria, manufacturing and materias companies These same factors aso had a negative impact on many Asia-Pacific companies and markets In addition, China s echange rate uncertainty resuted in heightened voatiity, affecting investor sentiment As the Bank of Japan continued its quantitative easing (monetary poicy used by centra banks to stimuate the economy), the yen weakened Whie this heped eports eary in the year, Japanese eports ater sowed as a resut of weakness in the Chinese economy In the US, arge-capitaization stocks posted modest gains over the period, whie sma- and mid-cap US stocks generay decined Severa issues weighed on US markets, incuding the timing of interest rate increases by the US Federa Reserve Board (the Fed), sowing goba growth and sharpy decining commodity prices The Fed raised its federa funds rate by 25 basis points in December, which had itte impact on equity market performance However, renewed concerns about goba growth and further decines among commodity prices contributed to a ate-period equity market decine

2 CIBC Managed Aggressive Growth Portfoio The US doar strengthened against most other major goba currencies Weakening crude oi and other commodity prices aso had a negative impact on the resource-heavy Canadian equity market, with the energy and materias sectors being the worst-performing sectors Bank stocks strugged with concerns about energy- and housing-reated risks to the Canadian economy and bank oan portfoios The utiities and teecommunication services sectors, as we as rea estate investment trusts, underperformed compared to the consumer stapes, consumer discretionary and heath care sectors, which offer more US eposure The Bank of Canada reduced interest rates by 50 basis points to counter some of the negative impact of ower commodity prices on Canada s economy Government bond yieds (return on income) fe, whie credit spreads (the difference in yied between corporate bonds and Government of Canada bonds with the same maturity) increased for higher-risk corporate bonds Severa events contributed to the decine in emerging markets stocks, incuding weak technoogy demand and sovereign concerns (such as Brazi s oss of investment-grade status and the decine in the Chinese A-share market) From an Underying Fund perspective, CIBC US Equity Fund was the most significant contributor to the Portfoio s performance reative to the bended benchmark, foowed by CIBC European Equity Fund, CIBC Asia Pacific Fund and Renaissance US Equity Income Fund Underying Fund CIBC Canadian Equity Vaue Fund was the most significant detractor from the Portfoio s reative performance, foowed by CIBC US Broad Market Inde Fund and Renaissance Corporate Bond Fund Recent Deveopments During the period, there were no events or activities that had a materia impact on the Portfoio Reated Party Transactions Canadian Imperia Bank of Commerce (CIBC) and its affiiates have the foowing roes and responsibiities with respect to the Portfoio, and receive the fees described beow in connection with their roes and responsibiities Manager CIBC is the Manager of the Portfoio The Portfoio hods units of other mutua funds (the Underying Funds), which may aso be managed by CIBC or its affiiates CIBC receives management fees with respect to the day-to-day business and operations of the Portfoio, cacuated based on the net asset vaue of each respective cass of units of the Portfoio as described in the section entited Management Fees The Manager aso compensates its whoesaers in connection with their marketing activities regarding the Portfoio From time to time, CIBC may provide seed capita to the Portfoio Trustee CIBC Trust Corporation, a whoy-owned subsidiary of CIBC, is the trustee (the Trustee) of the Portfoio The Trustee hods tite to the property (cash and securities) of the Portfoio on behaf of its unithoders Portfoio Advisor The portfoio advisor provides, or arranges to provide, investment advice and portfoio management services to the Portfoio CAMI, a whoy-owned subsidiary of CIBC, is the portfoio advisor of the Portfoio Distributor Deaers and other firms se the units of the Portfoio to investors These deaers and other firms incude CIBC s reated deaers such as the principa distributor, CIBC Securities Inc (CIBC SI), the CIBC Investor s Edge discount brokerage division of CIBC Investor Services Inc (CIBC ISI), the CIBC Imperia Service division of CIBC ISI, and the CIBC Wood Gundy division of CIBC Word Markets Inc (CIBC WM) CIBC SI, CIBC ISI, and CIBC WM are whoy-owned subsidiaries of CIBC CIBC may pay traiing commissions to these deaers and firms in connection with the sae of units of the Portfoio These deaers and other firms may pay a portion of these traiing commissions to their advisors who se units of the Portfoio to investors Brokerage Arrangements and Soft Doars The Portfoio Advisor purchases and ses units of the Underying Funds on behaf of the Portfoio and, as a resut, the Portfoio does not incur any saes charges or brokerage commissions with respect to eecution of portfoio transactions of the Underying Funds Decisions that the Portfoio Advisor may make as to brokerage transactions, incuding the seection of markets and deaers and the negotiation of commissions, woud be based on eements such as price, speed of eecution, certainty of eecution, and tota transaction costs CIBC WM and CIBC Word Markets Corp may aso earn spreads on the sae of securities to the Portfoio A spread is the difference between the bid and ask prices for a security in the appicabe marketpace, with respect to the eecution of portfoio transactions The spread wi differ based upon various factors such as the type and iquidity of the security Deaers, incuding CIBC WM and CIBC Word Markets Corp, may furnish goods and services, other than order eecution, to the Portfoio Advisor in partia echange for processing trades through them (referred to in the industry as soft doar arrangements) These goods and services are paid for with a portion of the brokerage commissions and assist the Portfoio Advisor with investment decision-making services for the Portfoio or reate directy to the eecution of trades on behaf of the Portfoio 2

3 CIBC Managed Aggressive Growth Portfoio In addition, CIBC may enter into commission recapture arrangements with certain deaers with respect to the Portfoio Any commission recaptured wi be paid to the Portfoio During the period, the Portfoio did not pay any brokerage commissions or other fees to CIBC WM or CIBC Word Markets Corp Spreads associated with fied income and other securities are not ascertainabe and, for that reason, cannot be incuded when determining these amounts Custodian CIBC Meon Trust Company is the custodian of the Portfoio (the Custodian) The Custodian hods a cash and securities for the Portfoio and ensures that those assets are kept separate from any other cash or securities that the Custodian might be hoding The Custodian aso provides other services to the Portfoio incuding record-keeping and processing of foreign echange transactions The Custodian may hire sub-custodians for the Portfoio The fees and spreads for services of the Custodian directy reated to the eecution of portfoio transactions by the Portfoio are paid by CAMI and/or deaer(s) directed by CAMI, up to the amount of the credits generated under soft doar arrangements from trading on behaf of the Portfoio during that month A other fees and spreads for the services of the Custodian are paid by the Manager and charged to the Portfoio on a recoverabe basis CIBC owns a 50% interest in the Custodian Service Provider CIBC Meon Goba Securities Services Company (CIBC GSS) provides certain services to the Portfoio, incuding fund accounting and reporting, securities ending, and portfoio vauation Such servicing fees are paid by the Manager and charged to the Portfoio on a recoverabe basis CIBC indirecty owns 50% interest in CIBC GSS 3

4 CIBC Managed Aggressive Growth Portfoio Financia Highights The foowing tabes show seected key financia information about the Portfoio and are intended to hep you understand the Portfoio s financia performance for the period ended December 31 The Portfoio's Net Assets per Unit¹ - Cass A Units Net Assets, beginning of period $ 1267 $ 1270 $ 1037 $ 936 $ 997 Increase (decrease) from operations: Tota revenue $ 032 $ 026 $ 026 $ 023 $ 024 Tota epenses (034) (033) (028) (024) (024) Reaized gains (osses) for the period (001) 004 Unreaized gains (osses) for the period 075 (040) (064) Tota increase (decrease) from operations 2 $ 125 $ 096 $ 233 $ 101 $ (060) Distributions: From income (ecuding dividends) $ $ $ $ $ From dividends From capita gains Return of capita Tota Distributions 3 $ $ 102 $ $ $ 001 Net Assets, end of period $ 1395 $ 1267 $ 1270 $ 1037 $ This information is derived from the Portfoio's audited annua financia statements The Portfoio adopted Internationa Financia Reporting Standards (IFRS) on January 1, 2014 Previousy, the Portfoio prepared its financia statements in accordance with Canadian Generay Accepted Accounting Principes (GAAP) as defined in Part V of the CPA Canada Handbook Under Canadian GAAP, the Portfoio measured fair vaues of its investments in accordance with CICA Handbook Section 3855 which required the use of bid prices for ong positions and ask prices for short positions As such, the net assets per unit figure presented in the financia statements may differ from the net asset vaue cacuated for fund pricing purposes An epanation of these differences can be found in the notes to the financia statements issued prior to January 1, 2014 Upon adoption of IFRS, the Portfoio measures the fair vaue of its investments by using the cose market prices, where the cose market price fas within the bid-ask spread As such, the Portfoio's accounting poicies for measuring the fair vaue of investments in the financia statements are consistent with those used in measuring the net asset vaue for transactions with unithoders Accordingy, the opening net asset figure as at January 1, 2013 was restated to refect accounting poicy adjustments made in accordance with IFRS A figures presented for periods prior to January 1, 2013 were prepared in accordance with Canadian GAAP and subsequent thereto were prepared in accordance with IFRS 2 Net assets and distributions are based on the actua number of units outstanding at the reevant time The tota increase (decrease) from operations is based on the weighted average number of units outstanding during the period 3 Distributions were paid in cash, reinvested in additiona units of the Portfoio, or both Ratios and Suppementa Data - Cass A Units Tota Net Asset Vaue (000s) 4 $ 223,458 $ 190,111 $ 163,166 $ 127,096 $ 121,570 Number of Units Outstanding 4 16,012,781 15,004,183 12,851,938 12,257,347 12,989,283 Management Epense Ratio 5 248% 247% 246% 248% 248% Management Epense Ratio before waivers or absorptions 6 258% 260% 263% 309% 309% Trading Epense Ratio 7 017% 016% 013% 014% 050% Portfoio Turnover Rate 8 868% 4498% 631% 502% 730% Net Asset Vaue per Unit $ 1395 $ 1267 $ 1270 $ 1037 $ This information is presented as at December 31 of the period(s) shown 5 Management epense ratio is based on the tota epenses of the fund (ecuding commissions and other portfoio transaction costs), incurred by or aocated to a cass of units for the period shown, epressed as an annuaized percentage of the daiy average net asset vaue of that cass during the period 6 The decision to waive and/or absorb management fees and operating epenses is at the discretion of the Manager The practice of waiving and/or absorbing management fees and operating epenses may continue indefinitey or may be terminated at any time without notice to unithoders 7 The trading epense ratio represents tota commissions and other portfoio transaction costs before income taes epressed as an annuaized percentage of the daiy average net asset vaue during the period Spreads associated with fied income securities trading are not ascertainabe and, for that reason, are not incuded in the trading epense ratio cacuation 8 The portfoio turnover rate indicates how activey the portfoio advisor and/or portfoio sub-advisor manages the portfoio investmentsa portfoio turnover rate of 100% is equivaent to a fund buying and seing a of the securities in its portfoio once in the course of the period The higher a portfoio turnover rate in a period, the greater the trading costs payabe by a fund in the period, and the greater the chance of an investor receiving taabe capita gains in the year There is not necessariy a reationship between a high turnover rate and the performance of a fund 4

5 CIBC Managed Aggressive Growth Portfoio The Portfoio's Net Assets per Unit¹ - Cass T4 Units Net Assets, beginning of period $ 1111 $ 1155 $ 976 $ 916 $ 1016 Increase (decrease) from operations: Tota revenue $ 030 $ 025 $ 027 $ 021 $ 030 Tota epenses (029) (029) (026) (023) (024) Reaized gains (osses) for the period (001) 004 Unreaized gains (osses) for the period 042 (044) (072) Tota increase (decrease) from operations 2 $ 092 $ 088 $ 217 $ 087 $ (062) Distributions: From income (ecuding dividends) $ $ $ $ $ From dividends From capita gains 133 Return of capita Tota Distributions 3 $ 044 $ 133 $ 037 $ 037 $ 041 Net Assets, end of period $ 1180 $ 1111 $ 1155 $ 976 $ This information is derived from the Portfoio's audited annua financia statements The Portfoio adopted Internationa Financia Reporting Standards (IFRS) on January 1, 2014 Previousy, the Portfoio prepared its financia statements in accordance with Canadian Generay Accepted Accounting Principes (GAAP) as defined in Part V of the CPA Canada Handbook Under Canadian GAAP, the Portfoio measured fair vaues of its investments in accordance with CICA Handbook Section 3855 which required the use of bid prices for ong positions and ask prices for short positions As such, the net assets per unit figure presented in the financia statements may differ from the net asset vaue cacuated for fund pricing purposes An epanation of these differences can be found in the notes to the financia statements issued prior to January 1, 2014 Upon adoption of IFRS, the Portfoio measures the fair vaue of its investments by using the cose market prices, where the cose market price fas within the bid-ask spread As such, the Portfoio's accounting poicies for measuring the fair vaue of investments in the financia statements are consistent with those used in measuring the net asset vaue for transactions with unithoders Accordingy, the opening net asset figure as at January 1, 2013 was restated to refect accounting poicy adjustments made in accordance with IFRS A figures presented for periods prior to January 1, 2013 were prepared in accordance with Canadian GAAP and subsequent thereto were prepared in accordance with IFRS 2 Net assets and distributions are based on the actua number of units outstanding at the reevant time The tota increase (decrease) from operations is based on the weighted average number of units outstanding during the period 3 Distributions were paid in cash, reinvested in additiona units of the Portfoio, or both Ratios and Suppementa Data - Cass T4 Units Tota Net Asset Vaue (000s) 4 $ 1,118 $ 758 $ 529 $ 300 $ 234 Number of Units Outstanding 4 94,759 68,219 45,812 30,751 25,482 Management Epense Ratio 5 245% 243% 243% 246% 249% Management Epense Ratio before waivers or absorptions 6 262% 261% 256% 360% 383% Trading Epense Ratio 7 017% 016% 013% 014% 050% Portfoio Turnover Rate 8 868% 4498% 631% 502% 730% Net Asset Vaue per Unit $ 1180 $ 1111 $ 1155 $ 976 $ This information is presented as at December 31 of the period(s) shown 5 Management epense ratio is based on the tota epenses of the fund (ecuding commissions and other portfoio transaction costs), incurred by or aocated to a cass of units for the period shown, epressed as an annuaized percentage of the daiy average net asset vaue of that cass during the period 6 The decision to waive and/or absorb management fees and operating epenses is at the discretion of the Manager The practice of waiving and/or absorbing management fees and operating epenses may continue indefinitey or may be terminated at any time without notice to unithoders 7 The trading epense ratio represents tota commissions and other portfoio transaction costs before income taes epressed as an annuaized percentage of the daiy average net asset vaue during the period Spreads associated with fied income securities trading are not ascertainabe and, for that reason, are not incuded in the trading epense ratio cacuation 8 The portfoio turnover rate indicates how activey the portfoio advisor and/or portfoio sub-advisor manages the portfoio investmentsa portfoio turnover rate of 100% is equivaent to a fund buying and seing a of the securities in its portfoio once in the course of the period The higher a portfoio turnover rate in a period, the greater the trading costs payabe by a fund in the period, and the greater the chance of an investor receiving taabe capita gains in the year There is not necessariy a reationship between a high turnover rate and the performance of a fund 5

6 CIBC Managed Aggressive Growth Portfoio The Portfoio's Net Assets per Unit¹ - Cass T6 Units Net Assets, beginning of period $ 1059 $ 1087 $ 936 $ 895 $ 1014 Increase (decrease) from operations: Tota revenue $ 026 $ 028 $ 026 $ 028 $ 037 Tota epenses (026) (026) (024) (022) (024) Reaized gains (osses) for the period (001) 005 Unreaized gains (osses) for the period 066 (080) (089) Tota increase (decrease) from operations 2 $ 109 $ 075 $ 200 $ 091 $ (071) Distributions: From income (ecuding dividends) $ $ $ $ $ From dividends From capita gains 112 Return of capita Tota Distributions 3 $ 064 $ 112 $ 054 $ 054 $ 061 Net Assets, end of period $ 1103 $ 1059 $ 1087 $ 936 $ This information is derived from the Portfoio's audited annua financia statements The Portfoio adopted Internationa Financia Reporting Standards (IFRS) on January 1, 2014 Previousy, the Portfoio prepared its financia statements in accordance with Canadian Generay Accepted Accounting Principes (GAAP) as defined in Part V of the CPA Canada Handbook Under Canadian GAAP, the Portfoio measured fair vaues of its investments in accordance with CICA Handbook Section 3855 which required the use of bid prices for ong positions and ask prices for short positions As such, the net assets per unit figure presented in the financia statements may differ from the net asset vaue cacuated for fund pricing purposes An epanation of these differences can be found in the notes to the financia statements issued prior to January 1, 2014 Upon adoption of IFRS, the Portfoio measures the fair vaue of its investments by using the cose market prices, where the cose market price fas within the bid-ask spread As such, the Portfoio's accounting poicies for measuring the fair vaue of investments in the financia statements are consistent with those used in measuring the net asset vaue for transactions with unithoders Accordingy, the opening net asset figure as at January 1, 2013 was restated to refect accounting poicy adjustments made in accordance with IFRS A figures presented for periods prior to January 1, 2013 were prepared in accordance with Canadian GAAP and subsequent thereto were prepared in accordance with IFRS 2 Net assets and distributions are based on the actua number of units outstanding at the reevant time The tota increase (decrease) from operations is based on the weighted average number of units outstanding during the period 3 Distributions were paid in cash, reinvested in additiona units of the Portfoio, or both Ratios and Suppementa Data - Cass T6 Units Tota Net Asset Vaue (000s) 4 $ 462 $ 418 $ 124 $ 74 $ 29 Number of Units Outstanding 4 41,865 39,441 11,441 7,920 3,297 Management Epense Ratio 5 238% 238% 241% 239% 251% Management Epense Ratio before waivers or absorptions 6 254% 256% 268% 633% 1246% Trading Epense Ratio 7 017% 016% 013% 014% 050% Portfoio Turnover Rate 8 868% 4498% 631% 502% 730% Net Asset Vaue per Unit $ 1103 $ 1059 $ 1087 $ 936 $ This information is presented as at December 31 of the period(s) shown 5 Management epense ratio is based on the tota epenses of the fund (ecuding commissions and other portfoio transaction costs), incurred by or aocated to a cass of units for the period shown, epressed as an annuaized percentage of the daiy average net asset vaue of that cass during the period 6 The decision to waive and/or absorb management fees and operating epenses is at the discretion of the Manager The practice of waiving and/or absorbing management fees and operating epenses may continue indefinitey or may be terminated at any time without notice to unithoders 7 The trading epense ratio represents tota commissions and other portfoio transaction costs before income taes epressed as an annuaized percentage of the daiy average net asset vaue during the period Spreads associated with fied income securities trading are not ascertainabe and, for that reason, are not incuded in the trading epense ratio cacuation 8 The portfoio turnover rate indicates how activey the portfoio advisor and/or portfoio sub-advisor manages the portfoio investmentsa portfoio turnover rate of 100% is equivaent to a fund buying and seing a of the securities in its portfoio once in the course of the period The higher a portfoio turnover rate in a period, the greater the trading costs payabe by a fund in the period, and the greater the chance of an investor receiving taabe capita gains in the year There is not necessariy a reationship between a high turnover rate and the performance of a fund 6

7 CIBC Managed Aggressive Growth Portfoio The Portfoio's Net Assets per Unit¹ - Cass T8 Units Net Assets, beginning of period $ 929 $ 1004 $ 882 $ 861 $ 996 Increase (decrease) from operations: Tota revenue $ 024 $ 020 $ 021 $ 023 $ 023 Tota epenses (024) (025) (023) (022) (023) Reaized gains (osses) for the period Unreaized gains (osses) for the period 039 (035) (046) Tota increase (decrease) from operations 2 $ 078 $ 069 $ 191 $ 080 $ (042) Distributions: From income (ecuding dividends) $ $ $ $ $ From dividends From capita gains 152 Return of capita Tota Distributions 3 $ 074 $ 152 $ 068 $ 068 $ 079 Net Assets, end of period $ 947 $ 929 $ 1004 $ 882 $ This information is derived from the Portfoio's audited annua financia statements The Portfoio adopted Internationa Financia Reporting Standards (IFRS) on January 1, 2014 Previousy, the Portfoio prepared its financia statements in accordance with Canadian Generay Accepted Accounting Principes (GAAP) as defined in Part V of the CPA Canada Handbook Under Canadian GAAP, the Portfoio measured fair vaues of its investments in accordance with CICA Handbook Section 3855 which required the use of bid prices for ong positions and ask prices for short positions As such, the net assets per unit figure presented in the financia statements may differ from the net asset vaue cacuated for fund pricing purposes An epanation of these differences can be found in the notes to the financia statements issued prior to January 1, 2014 Upon adoption of IFRS, the Portfoio measures the fair vaue of its investments by using the cose market prices, where the cose market price fas within the bid-ask spread As such, the Portfoio's accounting poicies for measuring the fair vaue of investments in the financia statements are consistent with those used in measuring the net asset vaue for transactions with unithoders Accordingy, the opening net asset figure as at January 1, 2013 was restated to refect accounting poicy adjustments made in accordance with IFRS A figures presented for periods prior to January 1, 2013 were prepared in accordance with Canadian GAAP and subsequent thereto were prepared in accordance with IFRS 2 Net assets and distributions are based on the actua number of units outstanding at the reevant time The tota increase (decrease) from operations is based on the weighted average number of units outstanding during the period 3 Distributions were paid in cash, reinvested in additiona units of the Portfoio, or both Ratios and Suppementa Data - Cass T8 Units Tota Net Asset Vaue (000s) 4 $ 657 $ 401 $ 332 $ 201 $ 134 Number of Units Outstanding 4 69,422 43,121 33,086 22,817 15,585 Management Epense Ratio 5 247% 247% 247% 248% 249% Management Epense Ratio before waivers or absorptions 6 272% 278% 270% 416% 429% Trading Epense Ratio 7 017% 016% 013% 014% 050% Portfoio Turnover Rate 8 868% 4498% 631% 502% 730% Net Asset Vaue per Unit $ 947 $ 929 $ 1004 $ 882 $ This information is presented as at December 31 of the period(s) shown 5 Management epense ratio is based on the tota epenses of the fund (ecuding commissions and other portfoio transaction costs), incurred by or aocated to a cass of units for the period shown, epressed as an annuaized percentage of the daiy average net asset vaue of that cass during the period 6 The decision to waive and/or absorb management fees and operating epenses is at the discretion of the Manager The practice of waiving and/or absorbing management fees and operating epenses may continue indefinitey or may be terminated at any time without notice to unithoders 7 The trading epense ratio represents tota commissions and other portfoio transaction costs before income taes epressed as an annuaized percentage of the daiy average net asset vaue during the period Spreads associated with fied income securities trading are not ascertainabe and, for that reason, are not incuded in the trading epense ratio cacuation 8 The portfoio turnover rate indicates how activey the portfoio advisor and/or portfoio sub-advisor manages the portfoio investmentsa portfoio turnover rate of 100% is equivaent to a fund buying and seing a of the securities in its portfoio once in the course of the period The higher a portfoio turnover rate in a period, the greater the trading costs payabe by a fund in the period, and the greater the chance of an investor receiving taabe capita gains in the year There is not necessariy a reationship between a high turnover rate and the performance of a fund 7

8 CIBC Managed Aggressive Growth Portfoio Management Fees The Portfoio, either directy or indirecty, pays an annua management fee to CIBC to cover the costs of managing the Portfoio Management fees are based on the net asset vaue of the Portfoio and are cacuated daiy and paid monthy Management fees are paid to CIBC in consideration for providing, or arranging for the provision of, management, distribution, and portfoio advisory services Advertising and promotiona epenses, office overhead epenses, traiing commissions, and the fees of the portfoio sub-advisor(s) are paid by CIBC out of the management fees received from the Portfoio The Portfoio is required to pay appicabe taes on the management fees paid to CIBC Refer to the Simpified Prospectus for the maimum annua management fee rate for each cass of units The foowing tabe shows a breakdown of the services received in consideration of the management fees, as a percentage of the management fees coected from the Portfoio for the period ended December 31, 2015 These amounts do not incude waived fees or absorbed epenses Cass A Units Cass T4 Units Cass T6 Units Cass T8 Units Saes and traiing commissions paid to deaers 1113% 934% 4132% 3048% Genera administration, investment advice, and profit 8887% 9066% 5868% 6952% Past Performance The performance data provided assumes reinvestment of distributions ony and does not take into account saes, redemption, distribution, or other optiona charges payabe by any unithoder that woud have reduced returns Past performance does not necessariy indicate how a fund wi perform in the future The Portfoio s returns are after the deduction of fees and epenses, and the difference in returns between casses of units is primariy due to differences in the management epense ratio See the section entited Financia Highights for the management epense ratio Year-by-Year Returns These bar charts show the annua performance of each cass of units of the Portfoio for each of the periods shown, and iustrate how the performance has changed from period to period These bar charts show, in percentage terms, how an investment made on January 1 woud have increased or decreased by December 31, uness otherwise indicated Cass A Units 8

9 CIBC Managed Aggressive Growth Portfoio Cass T4 Units a 2009 return is for the period from December 14, 2009 to December 31, 2009 Cass T6 Units a 2009 return is for the period from November 30, 2009 to December 31, 2009 Cass T8 Units a 2009 return is for the period from November 12, 2009 to December 31, 2009 Annua Compound Returns This tabe shows the annua compound return of each cass of units of the Portfoio for each indicated period ended on December 31, 2015 The annua compound tota return is aso compared to the Portfoio s benchmark(s) The Portfoio s primary benchmark is the MSCI Word Inde The Portfoio's bended benchmark (Bended Benchmark) is comprised of the foowing: 9

10 CIBC Managed Aggressive Growth Portfoio 21% S&P 500 Inde 20% S&P/TSX Composite Inde 13% MSCI EAFE Inde 11% Russe 3000 Vaue Inde 10% FTSE TMX Canada Universe Bond Inde 8% MSCI Europe Inde 6% FTSE EPRA/NAREIT Deveoped Rea Estate Inde 6% MSCI Emerging Markets Inde 5% MSCI A Country Asia Pacific Inde 1 Year 3 Years 5 Years 10 Years* or Since Inception* Inception Date Cass A units 101% 133% 87% 47% February 1, 2002 MSCI Word Inde 195% 232% 157% 74% Bended Benchmark 43% 136% 98% 60% Cass T4 units 102% 134% 87% 84% December 14, 2009 MSCI Word Inde 195% 232% 157% 140% Bended Benchmark 43% 136% 98% 99% Cass T6 units 102% 134% 87% 88% November 30, 2009 MSCI Word Inde 195% 232% 157% 141% Bended Benchmark 43% 136% 98% 100% Cass T8 units 102% 133% 87% 87% November 12, 2009 MSCI Word Inde 195% 232% 157% 141% Bended Benchmark 43% 136% 98% 101% * If a cass of units has been outstanding for ess than 10 years, the annua compound return since inception is shown FTSE EPRA/NAREIT Deveoped Rea Estate Inde is designed to track the performance of isted rea estate companies and REITS wordwide FTSE TMX Canada Universe Bond Inde is comprised of marketabe Canadian bonds intended to refect the performance of the broad Canadian investment-grade bond market Returns are cacuated daiy and are weighted by market capitaization MSCI A Country Asia Pacific Inde measures the performance of stock markets in 15 Pacific region countries, incuding Austraia, China, Hong Kong, India, Indonesia, Japan, Korea, Maaysia, New Zeaand, Pakistan, the Phiippines, Singapore, Sri Lanka, Taiwan and Thaiand MSCI EAFE Inde is a free foat-adjusted market capitaization inde of stocks of companies of deveoped market equity indices covering countries in Europe, Austraia, and the Far East MSCI Emerging Markets Inde is a free foat-adjusted market capitaization inde that is intended to represent the emerging countries equity market It incudes stocks from emerging countries in Asia, Latin America, Europe, Africa, and the Midde East MSCI Europe Inde is a free foat-adjusted market capitaization inde that is designed to measure deveoped market equity performance in Europe MSCI Word Inde is a free foat-adjusted market capitaization inde composed of companies representative of the market structure of deveoped market countries in North America, Europe and the Asia/Pacific region Russe 3000 Vaue Inde measures the performance of the broad vaue segment of US equity vaue universe It incudes those Russe 3000 companies with ower price-to-book ratios and ower forecasted growth vaues 10

11 CIBC Managed Aggressive Growth Portfoio S&P 500 Inde is a capitaization-weighted inde of 500 stocks, designed to measure performance of the broad US economy representing a major industries S&P/TSX Composite Inde is intended to represent the Canadian equity market and incudes the argest companies isted on the TSX A discussion of the reative performance of the Portfoio compared to its primary benchmark(s) can be found in Resuts of Operations 11

12 CIBC Managed Aggressive Growth Portfoio Summary of Investment Portfoio (as at December 31, 2015) This Portfoio invests in units of its Underying Funds You can find the prospectus and additiona information about the Underying Funds by visiting sedarcom The summary of investment portfoio may change due to ongoing portfoio transactions of the investment fund A quartery update is avaiabe by visiting wwwcibccom/mutuafunds The Top Positions tabe shows a fund s 25 argest positions For funds with fewer than 25 positions in tota, a positions are shown % of Net Asset Portfoio Breakdown Vaue Internationa Equity Mutua Funds 385 US Equity Mutua Funds 325 Canadian Equity Mutua Funds 194 Canadian Bond Mutua Funds 97 Other Assets, ess Liabiities -01 % of Net Asset Vaue Top Positions CIBC Internationa Equity Fund, Cass 'O' 132 Renaissance US Equity Income Fund, Cass 'O' 112 CIBC US Equity Fund, Cass 'O' 111 CIBC US Broad Market Inde Fund, Cass 'O' 102 Renaissance Canadian Growth Fund, Cass 'O' 98 CIBC Canadian Equity Vaue Fund, Cass 'O' 96 CIBC European Equity Fund, Cass 'O' 81 Renaissance Goba Rea Estate Fund, Cass 'O' 62 CIBC Emerging Markets Fund, Cass 'O' 58 CIBC Asia Pacific Fund, Cass 'O' 52 CIBC Canadian Bond Fund, Cass 'O' 49 Renaissance Corporate Bond Fund, Cass 'O' 48 Other Assets, ess Liabiities

13 The management report of fund performance may contain forward-ooking statements Forward-ooking statements incude statements that are predictive in nature, that depend upon or refer to future events or conditions, or that incude words such as epects, anticipates, intends, pans, beieves, estimates, or other simiar wording In addition, any statements that may be made concerning future performance, strategies, or prospects and possibe future actions taken by the fund, are aso forward-ooking statements These statements invove known and unknown risks, uncertainties, and other factors that may cause the actua resuts and achievements of the fund to differ materiay from those epressed or impied by such statements Such factors incude, but are not imited to: genera economic, market, and business conditions; fuctuations in securities prices, interest rates, and foreign currency echange rates; changes in government reguations; and catastrophic events We do not undertake, and specificay discaim, any obigation to update or revise any forward-ooking statements, whether as a resut of new information, future deveopments, or otherwise prior to the reease of the net management report of fund performance

14 CIBC Mutua Funds CIBC Famiy of Managed Portfoios CIBC 18 York Street, Suite 1300 Toronto, Ontario M5J 2T8 CIBC Securities Inc Website wwwcibccom/mutuafunds CIBC Securities Inc is a whoy-owned subsidiary of CIBC and is the principa distributor of the CIBC Mutua Funds and the CIBC Famiy of Managed Portfoios CIBC Famiy of Managed Portfoios are mutua funds that primariy invest in other CIBC Mutua Funds To obtain a copy of the simpified prospectus, ca CIBC Securities Inc at or ask your advisor