CIBC Global Monthly Income Fund. Interim Management Report of Fund Performance

Transcription

1 CIBC Goba Monthy Income Fund Interim Management Report of Fund Performance for the period ended June 30, 2017 A figures are reported in Canadian doars uness otherwise noted This interim management report of fund performance contains financia highights but does not contain either the compete interim or annua financia statements of the investment fund If you have not received a copy of the interim financia reports with this interim management report of fund performance, you can get a copy of the interim or 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 Resuts of Operations CIBC Asset Management Inc (CAMI or the Portfoio Advisor), American Century Investment Management, Inc (ACI) and Brandywine Goba Investment Management, LLC (Brandywine) provide investment advice and investment management services to CIBC Goba Monthy Income Fund (the Fund) ACI, CAMI and Brandywine use different investment styes and the percentage of the Fund aocated to them may change from time to time CAMI Canadian Baanced, approimatey 40% ACI Goba Equity, approimatey 20% Brandywine Goba Fied Income, approimatey 20% The Fund aso had eposure to goba infrastructure securities through investment in Renaissance Goba Infrastructure Fund, sub-advised by Mape-Brown Abbott Ltd, and to goba rea estate securities through investment in Renaissance Goba Rea Estate Fund, sub-advised by Cohen & Steers Capita Management, Inc The commentary that foows provides a summary of the resuts of operations for the si-month period ended June 30, 2017 A doar figures are epressed in thousands, uness otherwise indicated The Fund's net asset vaue increased by 6% during the period, from $533,591 as at December 31, 2016 to $563,690 as at June 30, 2017 Net saes of $4,707 and positive investment performance resuted in an overa increase in net asset vaue Cass A units of the Fund posted a return of 48% for the period The Fund s primary benchmarks are the MSCI Word Inde and the Citigroup Word Government Bond Inde (the benchmarks), which returned 75% and 12%, respectivey, for the same period The Fund s return is after the deduction of fees and epenses, unike the benchmarks See Past Performance for the returns of other casses of units offered by the Fund Goba markets gained soidy during the period, buoyed by strong macroeconomic and corporate earnings data Growth stocks outperformed vaue stocks for the first five months but traied vaue stocks in June US equities produced positive resuts amid generay good economic data The US Federa Reserve Board (Fed) raised the federa funds rate twice as the abour market continued to improve Markets in Europe aso deivered strong gains Corporate earnings growth in Europe reached a si-year high and outpaced earnings growth in the US Investors aso were reassured by heathy economic performance, faing unempoyment rates and the victory of centrist candidate Emmanue Macron in the French presidentia eections Growth momentum in Europe, spurred by European Centra Bank (ECB) rhetoric, heped ift many regiona currencies as we as the euro Equities in Japan posted soid returns as earnings eceeded epectations, driven by improved capita spending and continued strength in eports The oca economy remained in sow-and-steady growth mode, whie infation remained stubborny ow US doar weakness and the Fed setting the stage for gradua monetary tightening supported emerging markets countries and currencies in the period Emerging markets outperformed deveoped markets as emerging markets stocks reacted to positive earnings-per-share revisions and steady capita infows Oi prices retreated on concerns about rising inventory eves in the US The voatiity of oi prices increased before the meeting of the Organization of the Petroeum Eporting Countries In Canada, Home Capita Group Inc s chaenges resuted in high voatiity in the mortgage industry The performance of bank stocks, however, refected improved sentiment regarding the risk of oan oss provisions In the Canadian Baanced component of the Fund, a significant overweight aocation to the rea estate sector contributed significanty to performance, whie a moderate overweight aocation to the

2 CIBC Goba Monthy Income Fund teecommunication services sector contributed moderatey A sight overweight aocation to the financias sector contributed sighty Individua contributors incuded overweight hodings in Empire Co Ltd and Granite REIT Empire contributed significanty after reeasing better-than-epected resuts and its new CEO s strategic pan The concusion of the proy batte at Granite resuted in board changes that are ikey to acceerate corporate growth through acquisitions The potentia for more effective use of Granite s baance sheet was refected in a higher stock price, which contributed moderatey to the Fund s performance An overweight hoding in Canadian Nationa Raiway Co (CN) aso contributed moderatey, as the company reported strong operating resuts and improving car oad metrics A sight underweight aocation to the industrias and moderate underweight aocation to the information technoogy sectors detracted moderatey from performance A sight underweight aocation to the consumer discretionary sector detracted sighty Individua detractors incuded overweight hodings in Crescent Point Energy Corp and Cenovus Energy Inc, as their stock prices reacted to ower energy prices CAMI took advantage of energy sector voatiity to add new hodings in Gibson Energy Inc and Emera Inc, which are in CAMI's view, both high-quaity companies The eisting hodings in Canadian Imperia Bank of Commerce, Bank of Nova Scotia, Sun Life Financia Inc and Teck Resources Ltd were increased based on their earnings and CAMI s positive outook for the financias sector CAMI eiminated the Fund s hodings in H&R REIT and Capita Power Corp due to voatiity in the rea estate sector Hodings in CN, Magna Internationa Inc and Cenovus were trimmed in order to fund investments in industry peers with ower vauations In the goba equity component of the Fund, a significant overweight aocation to and stock seection in the information technoogy sector, particuary internet software and services companies, contributed significanty to performance A moderate overweight aocation to the financias sector and a sight underweight aocation to the consumer discretionary sector contributed to the Fund s performance In geographic terms, US investments contributed significanty to performance Significant individua contributors incuded Tencent Hodings Ltd and Aibaba Group Hoding Ltd, and a moderate overweight hoding in Kering Tencent benefited from the success of an onine game offering as we as from the shift to onine advertising patforms Aibaba enjoyed ongoing strength in its core e-commerce division as the vaue of goods traded on its sites continued to rise Luury brand operator Kering reported acceerating saes and revenue growth amid successfu product revitaization in key brands such as Gucci and Yves Saint Laurent Stock seection in the materias sector, and a moderate underweight aocation, detracted sighty from performance A moderate underweight aocation in consumer stapes aso detracted sighty from reative performance From a geographic perspective, stock seection in Spain, where the portfoio had a sight underweight eposure, detracted marginay The ongoing weakness in oi prices pressured severa oi, gas and consumabe fues hodings, incuding Pioneer Natura Resources Co and EQT Corp, sight overweight hodings that were significant detractors The sight overweight aocation in industria suppier and distributor HD Suppy Hodings Inc aso detracted significanty after management announced worse-than-epected resuts as higher raw materias costs pressured margins ACI beieves epected operating everage wi not be reaized, and eiminated the hoding ACI added new hodings in Uniever PLC and e-commerce and internet company Rakuten Inc ACI beieves operating margins at Uniever are epanding as the consumer goods company cuts costs ACI epects Rakuten to benefit from the continuing transition to onine channes ACI eiminated the hodings in Citizens Financia Group Inc and NTT DOCOMO INC ACI is concerned about Citizens Financia s eposure to student, auto and unsecured oans, which may negativey impact credit costs, and beieves growth in NTT DOCOMO s business is sowing In the goba fied income component of the Fund, significanty overweight aocation to emerging markets significanty contributed to performance Specificay, modest overweight aocations to Indonesia and South Africa modesty contributed, moderate overweight hodings in Braziian oca currency bonds modesty contributed, and significant overweight hodings in Meican oca currency bonds significanty contributed Both Meican bonds and the peso performed we due to regiona eections and a surprise centra bank rate increase in May, which heped bonds across the yied curve ray Athough Braziian assets were hit hard in May when current President Temer was impicated in the pervasive corruption scanda, they had aready deivered soid performance in the first quarter as investors searched for higher-yieding assets The Fund s moderate overweight hodings in Poish oca currency bonds aso moderatey contributed to performance Poand has consistenty increased productivity and empoyment, and therefore both its bonds and the zoty improved aong with European growth Brandywine beieves forthcoming infrastructure funding from the European Union shoud hep the Poish economy in the ong run The Fund s moderatey overweight eposure to European periphery currencies such as the Poish zoty, Swedish krona and British pound modesty contributed to performance A significant underweight aocation to the euro was the most significant detractor from reative performance Brandywine added a sma aocation eary in the period based on the improving European economy, but eiminated it based on the divergence in ECB and Fed monetary poicy Brandywine beieves accommodative ECB poicy may put downward pressure on the euro, whie tightening Fed poicy ifts the US doar Simiary, Brandywine increased the Fund s eposure to the Japanese yen eary in the period based on the view that Prime Minister Abe s 2

3 CIBC Goba Monthy Income Fund poicies coud finay be having a positive economic impact However, after the yen raied the eposure was eiminated, due to the Bank of Japan s accommodative monetary poicy Brandywine swapped Hungarian government bonds for Poish government bonds, because Brandywine beieves Poand has a superior economic backdrop and a centra bank more ikey to address an infationary pickup In addition, Brandywine beieves that Poish bonds offer a rea yied premium to Hungarian bonds Late in the period, Brandywine added Canadian eposure with a Canadian doar forward contract, reducing eposure to the US doar A better goba growth outook, especiay in the US, ed the Bank of Canada to indicate the possibiity of tighter monetary poicy, which shoud provide some fundamenta support for the currency The Fund s eposure to the Chiean peso was eiminated as it approached fair vaue according to Brandywine s short-term economic mode The Chiean economy has sowed dramaticay from its peak growth in 2011, partiay in response to ower copper prices and the subsequent decine in copper production Recent Deveopments Effective Apri 27, 2017, the composition of the Independent Review Committee (IRC) changed Tim Kennish and Wiiam Thornhi resigned as members of the IRC and Susan Sima and Bryan Houston were appointed as members of the IRC Reated Party Transactions Canadian Imperia Bank of Commerce (CIBC) and its affiiates have the foowing roes and responsibiities with respect to the Fund, and receive the fees described beow in connection with their roes and responsibiities Manager CIBC is the Manager of the Fund CIBC receives management fees with respect to the day-to-day business and operations of the Fund, cacuated based on the net asset vaue of each respective cass of units of the Fund as described in the section entited Management Fees The Manager aso compensates its whoesaers in connection with their marketing activities regarding the Fund From time to time, CIBC may provide seed capita to the Fund Trustee CIBC Trust Corporation, a whoy-owned subsidiary of CIBC, is the trustee (the Trustee) of the Fund The Trustee hods tite to the property (cash and securities) of the Fund on behaf of its unithoders Portfoio Advisor The portfoio advisor provides, or arranges to provide, investment advice and portfoio management services to the Fund CAMI, a whoy-owned subsidiary of CIBC, is the portfoio advisor of the Fund Distributor Deaers and other firms se the units of the Fund 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 Investor 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, ecept for CIBC SI, in connection with the sae of units of the Fund These deaers and other firms may pay a portion of these traiing commissions to their advisors who se units of the Fund to investors CIBC does not pay traiing commissions to CIBC SI for seing units of the Fund, athough overa saes of CIBC funds may be considered in assessing the performance of their advisors and may therefore contribute to their annua compensation Brokerage Arrangements and Soft Doars The Portfoio Advisor and any portfoio sub-advisors make decisions, incuding the seection of markets and deaers and the negotiation of commissions, with respect to the purchase and sae of portfoio securities, certain derivative products and the eecution of portfoio transactions Brokerage business may be aocated by the Portfoio Advisor and any portfoio sub-advisors, to CIBC WM and CIBC Word Markets Corp, each a subsidiary of CIBC CIBC WM and CIBC Word Markets Corp may aso earn spreads on the sae of fied income and other securities and certain derivative products to the Fund 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 and any portfoio sub-advisors, 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 and any portfoio sub-advisors, with investment decision-making services for the Fund or reate directy to the eecution of portfoio transactions on behaf of the Fund As per the terms of the portfoio sub-advisory agreements, such soft doar arrangements are in compiance with appicabe aws In addition, the Manager may enter into commission recapture arrangements with certain deaers with respect to the Fund Any commission recaptured wi be paid to the Fund During the period, the Fund paid brokerage commissions and other fees of $3,890 to CIBC WM; the Fund did not pay any brokerage commissions or other fees to 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 3

4 CIBC Goba Monthy Income Fund Fund Transactions The Fund may enter into one or more of the foowing transactions (the Reated Party Transactions) in reiance on the standing instructions issued by the IRC: invest in or hod equity securities of CIBC or issuers reated to a portfoio sub-advisor; invest in or hod non-echange-traded debt securities of CIBC or an issuer reated to CIBC in a primary offering and in the secondary market; make an investment in the securities of an issuer for which CIBC WM, CIBC Word Markets Corp, or any affiiate of CIBC (a Reated Deaer) acts as an underwriter during the offering of the securities at any time during the 60-day period foowing the competion of the offering of such securities (in the case of a private pacement offering, in accordance with the eemptive reief order granted by the Canadian securities reguatory authorities and in accordance with the poicies and procedures reating to such investment); purchase equity or debt securities from or se them to a Reated Deaer, where it is acting as principa; undertake currency and currency derivative transactions where a Reated Deaer is the counterparty; and purchase securities from or se securities to another investment fund or a managed account managed by the Manager or an affiiate of the Manager At east annuay, the IRC reviews the Reated Party Transactions for which they have issued standing instructions The IRC is required to advise the Canadian securities reguatory authorities, after a matter has been referred or reported to the IRC by the Manager, if it determines that an investment decision was not made in accordance with conditions of its approva Custodian CIBC Meon Trust Company is the custodian of the Fund (the Custodian) The Custodian hods a cash and securities for the Fund 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 Fund incuding record-keeping and processing of foreign echange transactions The fees and spreads for the services of the Custodian directy reated to the eecution of portfoio transactions initiated by CAMI as the Portfoio Advisor are paid by CAMI and/or the deaer(s) directed by CAMI, up to the amount of the credits generated under soft doar arrangements from trading by CAMI on behaf of the Fund during that month A other fees and spreads for the services of the Custodian are paid by the Manager and charged to the Fund 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 Fund, incuding securities ending, fund accounting and reporting, and portfoio vauation Such servicing fees are paid by the Manager and charged to the Fund on a recoverabe basis CIBC indirecty owns a 50% interest in CIBC GSS 4

5 CIBC Goba Monthy Income Fund Financia Highights The foowing tabes show seected key financia information about the Fund and are intended to hep you understand the Fund s financia performance for the period ended June 30, 2017 and December 31 of any other period(s) shown The Fund's Net Assets per Unit¹ - Cass A Units Net Assets, beginning of period $ 949 $ 947 $ 932 $ 887 $ 815 $ 776 Increase (decrease) from operations: Tota revenue $ 017 $ 028 $ 027 $ 026 $ 024 $ 021 Tota epenses (010) (020) (021) (020) (018) (016) Reaized gains (osses) for the period Unreaized gains (osses) for the period (001) (094) Tota increase (decrease) from operations 2 $ 046 $ 041 $ 039 $ 077 $ 111 $ 075 Distributions: From income (ecuding dividends) $ 018 $ 001 $ 006 $ 004 $ 003 $ 002 From dividends From capita gains Return of capita Tota Distributions 3 $ 018 $ 036 $ 036 $ 037 $ 036 $ 036 Net Assets, end of period $ 977 $ 949 $ 947 $ 932 $ 887 $ This information is derived from the Fund's audited annua and unaudited interim financia statements The Fund adopted Internationa Financia Reporting Standards (IFRS) on January 1, 2014 Previousy, the Fund 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 Fund 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 Fund 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 Fund'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 Fund, or both Ratios and Suppementa Data - Cass A Units Tota Net Asset Vaue (000s) 4 $ 563,690 $ 533,591 $ 482,027 $ 293,217 $ 212,160 $ 112,541 Number of Units Outstanding 4 57,692,411 56,210,064 50,920,282 31,457,232 23,919,639 13,811,338 Management Epense Ratio 5 206%* 206% 207% 206% 204% 205% Management Epense Ratio before waivers or absorptions 6 236%* 237% 239% 239% 243% 245% Trading Epense Ratio 7 003%* 003% 003% 004% 005% 009% Portfoio Turnover Rate % 3694% 4022% 6826% 5847% 11111% Net Asset Vaue per Unit $ 977 $ 949 $ 947 $ 932 $ 887 $ 815 * Ratio has been annuaized 4 This information is presented as at June 30, 2017 and 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 Goba Monthy Income Fund The Fund's Net Assets per Unit¹ - Cass O Units a Net Assets, beginning of period $ 1288 $ 1307 $ 1302 b Increase (decrease) from operations: Tota revenue $ 006 $ 013 $ Tota epenses Reaized gains (osses) for the period Unreaized gains (osses) for the period 022 (001) Tota increase (decrease) from operations 2 $ 035 $ 027 $ Distributions: From income (ecuding dividends) $ 022 $ 001 $ 005 From dividends 041 From capita gains Return of capita Tota Distributions 3 $ 022 $ 044 $ 011 Net Assets, end of period $ 1302 $ 1288 $ 1307 a Information presented is for the period from October 30, 2015 to December 31, 2015 b Represents the price on the first day in the period in which the cass became active 1 This information is derived from the Fund's audited annua and unaudited interim financia statements 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 Fund, or both Ratios and Suppementa Data - Cass O Units a Tota Net Asset Vaue (000s) 4 $ $ $ Number of Units Outstanding Management Epense Ratio 5 000%* 000% 000%* Management Epense Ratio before waivers or absorptions 6 000%* 000% 056%* Trading Epense Ratio 7 003%* 003% 003% Portfoio Turnover Rate % 3694% 4022% Net Asset Vaue per Unit $ 1302 $ 1288 $ 1307 a Information presented is for the period from October 30, 2015 to December 31, 2015 * Ratio has been annuaized 4 This information is presented as at June 30, 2017 and 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 Goba Monthy Income Fund Management Fees The Fund, either directy or indirecty, pays an annua management fee to CIBC to cover the costs of managing the Fund Management fees are based on the net asset vaue of the Fund 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 Fund The Fund 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 For Cass O units, the management fee is negotiated with and paid by, or as directed by, unithoders or deaers and discretionary managers on behaf of unithoders Such Cass O management fee wi not eceed the Cass A unit management fee rate 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 Fund for the period ended June 30, 2017 These amounts do not incude waived fees or absorbed epenses Cass A Units Saes and traiing commissions paid to deaers 4082% Genera administration, investment advice, and profit 5918% 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 Fund 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 Fund 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 200% 164% 136% 100% 99% 95% 93% 54% 42% 48% 00% -100% -31% -48% -200% -179% a a 2017 return is for the period from January 1, 2017 to June 30,

8 CIBC Goba Monthy Income Fund Cass O Units 40% 30% 28% 20% 10% 13% 20% 00% 15 a b a 2015 return is for the period from October 30, 2015 to December 31, 2015 b 2017 return is for the period from January 1, 2017 to June 30,

9 CIBC Goba Monthy Income Fund Summary of Investment Portfoio (as at June 30, 2017) 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 Cash and cash equivaents are shown in tota as one position % of Net Asset Portfoio Breakdown Vaue Internationa Equity Mutua Funds 202 Foreign Currency Bonds 189 Financias 140 Other Equities 126 Corporate Bonds 87 Energy 59 Other Bonds 48 Information Technoogy 46 Industrias 43 Consumer Discretionary 30 Cash & Cash Equivaents 28 Forward & Spot Contracts 02 % of Net Asset Top Positions Vaue Renaissance Goba Infrastructure Fund, Cass 'O' 105 Renaissance Goba Rea Estate Fund, Cass 'O' 99 Cash & Cash Equivaents 28 Roya Bank of Canada 21 Toronto-Dominion Bank (The) 16 United States Treasury Bond, Foating Rate, 099%, 2019/01/31 14 United Meican States, Series 'M', 775%, 2042/11/13 14 Enbridge Inc 13 Canadian Nationa Raiway Co 12 Canadian Imperia Bank of Commerce 12 United Kingdom Treasury Bond, 125%, 2018/07/22 12 Bank of Montrea 11 BCE Inc 10 Bank of Nova Scotia 10 United States Treasury Bond, 288%, 2046/11/15 09 TransCanada Corp 08 Manuife Financia Corp 08 TELUS Corp 08 United States Treasury Bond, Foating Rate, 107%, 2019/04/30 08 Canadian Pacific Raiway Ltd 07 Repubic of Poand, Series '0725', 325%, 2025/07/25 07 Sun Life Financia Inc 07 Suncor Energy Inc 06 Power Financia Corp 06 Canadian Natura Resources Ltd 06 9

10 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

11 CIBC Mutua Funds CIBC Famiy of 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 Portfoios CIBC Famiy of 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