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

Transcription

1 CIBC Managed Aggressive Growth Portfolio Interim Management Report of Fund Performance for the period ended June 30, 2017 All figures are reported in Canadian dollars unless otherwise noted This interim management report of fund performance contains financial highlights but does not contain either the complete interim or annual financial statements of the investment fund If you have not received a copy of the interim financial reports with this interim management report of fund performance, you can get a copy of the interim or annual financial statements at your request, and at no cost, by calling us toll-free at , by writing to us at CIBC, 18 York Street, Suite 1300, Toronto, Ontario, M5J 2T8, or by visiting wwwcibccom/mutualfunds or the SEDAR website at wwwsedarcom Unitholders may also contact us using one of these methods to request a copy of the investment fund s proy voting policies and procedures, proy voting disclosure record, or quarterly portfolio disclosure Management Discussion of Fund Performance Results of Operations The portfolio advisor of CIBC Managed Aggressive Growth Portfolio (the Portfolio) is CIBC Asset Management Inc (CAMI or the Portfolio Advisor) The commentary that follows provides a summary of the results of operations for the si-month period ended June 30, 2017 All dollar figures are epressed in thousands, unless otherwise indicated The Portfolio's net asset value increased by 12% during the period, from $247,253 as at December 31, 2016 to $276,281 as at June 30, 2017 Net sales of $13,785 and positive investment performance resulted in an overall increase in net asset value Class A units of the Portfolio posted a return of 61% for the period The Portfolio s primary benchmark is the MSCI World Inde (the primary benchmark), which returned 75% for the same period The Portfolio's blended benchmark (the blended benchmark) comprises 21% S&P 500 Inde, 20% S&P/TSX Composite Inde, 13% MSCI EAFE Inde, 11% Russell 3000 Value Inde, 10% FTSE TMX Canada Universe Bond Inde, 8% MSCI Europe Inde, 6% FTSE EPRA/NAREIT Developed Real Estate Inde (Net), 6% MSCI Emerging Markets Inde and 5% MSCI All Country Asia Pacific Inde The blended benchmark returned 57% for the same period The blended benchmark closely reflects the asset classes in which the Portfolio invests It provides a more useful comparative to the performance of the Portfolio The Portfolio s return is after the deduction of fees and epenses, unlike the primary and blended benchmarks See Past Performance for the returns of other classes of units offered by the Portfolio The Portfolio has target allocations of 320% international equities, 320% US equities, 200% Canadian equities, 100% Canadian fied income securities and 60% emerging markets equities International equity markets delivered strong returns in many regions, with non-us developed market stocks outperforming US stocks Europe outperformed other developed markets, as a result of strong revenue and earnings growth UK stocks gained but lagged other developed markets as a result of uncertainty surrounding Breit Similarly, Japanese stocks gained but underperformed as the economy continued in slow-and-steady growth mode and inflation remained low Global real estate returns improved early in the period, as the global economy strengthened US equity markets posted positive results amid generally good economic data The US Federal Reserve Board raised the federal funds rate twice as the labour market continued to improve Major market indices posted new highs, fuelled by rising business and consumer confidence, before declining in late June Growth stocks significantly outperformed value stocks Although the Organization of the Petroleum Eporting Countries (OPEC) etended its production cuts, concerns that rising global supply would offset the cuts caused crude oil prices to fall Canadian equity markets were roughly flat, underperforming most other markets Energy prices and stocks were weak, while the telecommunication services and utility sectors outperformed Home Capital Group Inc s challenges resulted in high volatility in the mortgage industry, and the volatility of oil prices increased ahead of the OPEC meeting In Canadian fied income markets, bond yields declined for most of the period but ended the period higher Corporate bonds outperformed as investors sought higher-yielding alternatives to federal bonds Emerging market equities outperformed developed market equities, as the US dollar weakened, global economic growth increased and the Chinese economy strengthened From an underlying fund perspective, Renaissance US Equity Income Fund (C$) was the most significant contributor to the Portfolio s performance relative to the blended benchmark, followed by CIBC US Equity Fund (C$) and Renaissance Global Real Estate Fund The most significant detractor from the Portfolio s performance was CIBC Canadian Equity Value Fund, followed by CIBC US Broad Market Inde Fund (C$)

2 CIBC Managed Aggressive Growth Portfolio Recent Developments Effective April 27, 2017, the composition of the Independent Review Committee (IRC) changed Tim Kennish and William Thornhill resigned as members of the IRC and Susan Silma and Bryan Houston were appointed as members of the IRC Related Party Transactions Canadian Imperial Bank of Commerce (CIBC) and its affiliates have the following roles and responsibilities with respect to the Portfolio, and receive the fees described below in connection with their roles and responsibilities Manager CIBC is the Manager of the Portfolio The Portfolio holds units of other mutual funds (the Underlying Funds), which may also be managed by CIBC or its affiliates CIBC receives management fees with respect to the day-to-day business and operations of the Portfolio, calculated based on the net asset value of each respective class of units of the Portfolio as described in the section entitled Management Fees The Manager also compensates its wholesalers in connection with their marketing activities regarding the Portfolio From time to time, CIBC may provide seed capital to the Portfolio Trustee CIBC Trust Corporation, a wholly-owned subsidiary of CIBC, is the trustee (the Trustee) of the Portfolio The Trustee holds title to the property (cash and securities) of the Portfolio on behalf of its unitholders Portfolio Advisor The portfolio advisor provides, or arranges to provide, investment advice and portfolio management services to the Portfolio CAMI, a wholly-owned subsidiary of CIBC, is the portfolio advisor of the Portfolio Distributor Dealers and other firms sell the units of the Portfolio to investors These dealers and other firms include CIBC s related dealers such as the principal distributor, CIBC Securities Inc (CIBC SI), the CIBC Investor s Edge discount brokerage division of CIBC Investor Services Inc (CIBC ISI), the CIBC Imperial Investor Service division of CIBC ISI, and the CIBC Wood Gundy division of CIBC World Markets Inc (CIBC WM) CIBC SI, CIBC ISI, and CIBC WM are wholly-owned subsidiaries of CIBC CIBC may pay trailing commissions to these dealers and firms, ecept for CIBC SI, in connection with the sale of units of the Portfolio These dealers and other firms may pay a portion of these trailing commissions to their advisors who sell units of the Portfolio to investors CIBC does not pay trailing commissions to CIBC SI for selling units of the Fund, although overall sales of CIBC funds may be considered in assessing the performance of their advisors and may therefore contribute to their annual compensation Brokerage Arrangements and Soft Dollars The Portfolio Advisor purchases and sells units of the Underlying Funds on behalf of the Portfolio and, as a result, the Portfolio does not incur any sales charges or brokerage commissions with respect to eecution of portfolio transactions of the Underlying Funds Decisions that the Portfolio Advisor may make as to brokerage transactions, including the selection of markets and dealers and the negotiation of commissions, would be based on elements such as price, speed of eecution, certainty of eecution, and total transaction costs CIBC WM and CIBC World Markets Corp may also earn spreads on the sale of securities to the Portfolio A spread is the difference between the bid and ask prices for a security in the applicable marketplace, with respect to the eecution of portfolio transactions The spread will differ based upon various factors such as the type and liquidity of the security Dealers, including CIBC WM and CIBC World Markets Corp, may furnish goods and services, other than order eecution, to the Portfolio Advisor in partial echange for processing trades through them (referred to in the industry as soft dollar arrangements) These goods and services are paid for with a portion of the brokerage commissions and assist the Portfolio Advisor with investment decision-making services for the Portfolio or relate directly to the eecution of trades on behalf of the Portfolio In addition, CIBC may enter into commission recapture arrangements with certain dealers with respect to the Portfolio Any commission recaptured will be paid to the Portfolio During the period, the Portfolio did not pay any brokerage commissions or other fees to CIBC WM or CIBC World Markets Corp Spreads associated with fied income and other securities are not ascertainable and, for that reason, cannot be included when determining these amounts Custodian CIBC Mellon Trust Company is the custodian of the Portfolio (the Custodian) The Custodian holds all cash and securities for the Portfolio and ensures that those assets are kept separate from any other cash or securities that the Custodian might be holding The Custodian also provides other services to the Portfolio including record-keeping and processing of foreign echange transactions The Custodian may hire sub-custodians for the Portfolio The fees and spreads for services of the Custodian directly related to the eecution of portfolio transactions by the Portfolio are paid by CAMI and/or dealer(s) directed by CAMI, up to the amount of the credits generated under soft dollar arrangements from trading on behalf of the Portfolio during that month All other fees and spreads for the services of the Custodian are paid by the Manager and charged to the Portfolio on a recoverable basis CIBC owns a 50% interest in the Custodian 2

3 CIBC Managed Aggressive Growth Portfolio Service Provider CIBC Mellon Global Securities Services Company (CIBC GSS) provides certain services to the Portfolio, including fund accounting and reporting, securities lending, and portfolio valuation Such servicing fees are paid by the Manager and charged to the Portfolio on a recoverable basis CIBC indirectly owns 50% interest in CIBC GSS 3

4 CIBC Managed Aggressive Growth Portfolio Financial Highlights The following tables show selected key financial information about the Portfolio and are intended to help you understand the Portfolio s financial performance for the period ended June 30, 2017 and December 31 of any other period(s) shown The Portfolio's Net Assets per Unit¹ - Class A Units Net Assets, beginning of period $ 1439 $ 1395 $ 1267 $ 1270 $ 1037 $ 936 Increase (decrease) from operations: Total revenue $ 006 $ 031 $ 032 $ 026 $ 026 $ 023 Total epenses (019) (034) (034) (033) (028) (024) Realized gains (losses) for the period (001) Unrealized gains (losses) for the period (040) Total increase (decrease) from operations 2 $ 086 $ 047 $ 125 $ 096 $ 233 $ 101 Distributions: From income (ecluding dividends) $ $ $ $ $ $ From dividends From capital gains 102 Return of capital Total Distributions 3 $ $ $ $ 102 $ $ Net Assets, end of period $ 1526 $ 1439 $ 1395 $ 1267 $ 1270 $ This information is derived from the Portfolio'saudited annual and unaudited interim financial statements The Portfolio adopted International Financial Reporting Standards (IFRS) on January 1, 2014 Previously, the Portfolio prepared its financial statements in accordance with Canadian Generally Accepted Accounting Principles (GAAP) as defined in Part V of the CPA Canada Handbook Under Canadian GAAP, the Portfolio measured fair values of its investments in accordance with CICA Handbook Section 3855 which required the use of bid prices for long positions and ask prices for short positions As such, the net assets per unit figure presented in the financial statements may differ from the net asset value calculated for fund pricing purposes An eplanation of these differences can be found in the notes to the financial statements issued prior to January 1, 2014 Upon adoption of IFRS, the Portfolio measures the fair value of its investments by using the close market prices, where the close market price falls within the bid-ask spread As such, the Portfolio's accounting policies for measuring the fair value of investments in the financial statements are consistent with those used in measuring the net asset value for transactions with unitholders Accordingly, the opening net asset figure as at January 1, 2013 was restated to reflect accounting policy adjustments made in accordance with IFRS All 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 actual number of units outstanding at the relevant time The total 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 additional units of the Portfolio, or both Ratios and Supplemental Data - Class A Units Total Net Asset Value (000s) 4 $ 273,913 $ 244,959 $ 223,458 $ 190,111 $ 163,166 $ 127,096 Number of Units Outstanding 4 17,952,284 17,026,154 16,012,781 15,004,183 12,851,938 12,257,347 Management Epense Ratio 5 247%* 248% 248% 247% 246% 248% Management Epense Ratio before waivers or absorptions 6 258%* 259% 258% 260% 263% 309% Trading Epense Ratio 7 013%* 018% 017% 016% 013% 014% Portfolio Turnover Rate 8 254% 775% 868% 4498% 631% 502% Net Asset Value per Unit $ 1526 $ 1439 $ 1395 $ 1267 $ 1270 $ 1037 * Ratio has been annualized 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 total epenses of the fund (ecluding commissions and other portfolio transaction costs), incurred by or allocated to a class of units for the period shown, epressed as an annualized percentage of the daily average net asset value of that class 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 indefinitely or may be terminated at any time without notice to unitholders 7 The trading epense ratio represents total commissions and other portfolio transaction costs before income taes epressed as an annualized percentage of the daily average net asset value during the period Spreads associated with fied income securities trading are not ascertainable and, for that reason, are not included in the trading epense ratio calculation 8 The portfolio turnover rate indicates how actively the portfolio advisor and/or portfolio sub-advisor manages the portfolio investmentsa portfolio turnover rate of 100% is equivalent to a fund buying and selling all of the securities in its portfolio once in the course of the period The higher a portfolio turnover rate in a period, the greater the trading costs payable by a fund in the period, and the greater the chance of an investor receiving taable capital gains in the year There is not necessarily a relationship between a high turnover rate and the performance of a fund 4

5 CIBC Managed Aggressive Growth Portfolio The Portfolio's Net Assets per Unit¹ - Class T4 Units Net Assets, beginning of period $ 1168 $ 1180 $ 1111 $ 1155 $ 976 $ 916 Increase (decrease) from operations: Total revenue $ 005 $ 026 $ 030 $ 025 $ 027 $ 021 Total epenses (015) (028) (029) (029) (026) (023) Realized gains (losses) for the period (001) Unrealized gains (losses) for the period (044) Total increase (decrease) from operations 2 $ 070 $ 043 $ 092 $ 088 $ 217 $ 087 Distributions: From income (ecluding dividends) $ 023 $ $ $ $ $ From dividends From capital gains 133 Return of capital Total Distributions 3 $ 023 $ 047 $ 044 $ 133 $ 037 $ 037 Net Assets, end of period $ 1215 $ 1168 $ 1180 $ 1111 $ 1155 $ This information is derived from the Portfolio'saudited annual and unaudited interim financial statements The Portfolio adopted International Financial Reporting Standards (IFRS) on January 1, 2014 Previously, the Portfolio prepared its financial statements in accordance with Canadian Generally Accepted Accounting Principles (GAAP) as defined in Part V of the CPA Canada Handbook Under Canadian GAAP, the Portfolio measured fair values of its investments in accordance with CICA Handbook Section 3855 which required the use of bid prices for long positions and ask prices for short positions As such, the net assets per unit figure presented in the financial statements may differ from the net asset value calculated for fund pricing purposes An eplanation of these differences can be found in the notes to the financial statements issued prior to January 1, 2014 Upon adoption of IFRS, the Portfolio measures the fair value of its investments by using the close market prices, where the close market price falls within the bid-ask spread As such, the Portfolio's accounting policies for measuring the fair value of investments in the financial statements are consistent with those used in measuring the net asset value for transactions with unitholders Accordingly, the opening net asset figure as at January 1, 2013 was restated to reflect accounting policy adjustments made in accordance with IFRS All 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 actual number of units outstanding at the relevant time The total 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 additional units of the Portfolio, or both Ratios and Supplemental Data - Class T4 Units Total Net Asset Value (000s) 4 $ 1,187 $ 1,193 $ 1,118 $ 758 $ 529 $ 300 Number of Units Outstanding 4 97, ,161 94,759 68,219 45,812 30,751 Management Epense Ratio 5 248%* 246% 245% 243% 243% 246% Management Epense Ratio before waivers or absorptions 6 265%* 263% 262% 261% 256% 360% Trading Epense Ratio 7 013%* 018% 017% 016% 013% 014% Portfolio Turnover Rate 8 254% 775% 868% 4498% 631% 502% Net Asset Value per Unit $ 1215 $ 1168 $ 1180 $ 1111 $ 1155 $ 976 * Ratio has been annualized 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 total epenses of the fund (ecluding commissions and other portfolio transaction costs), incurred by or allocated to a class of units for the period shown, epressed as an annualized percentage of the daily average net asset value of that class 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 indefinitely or may be terminated at any time without notice to unitholders 7 The trading epense ratio represents total commissions and other portfolio transaction costs before income taes epressed as an annualized percentage of the daily average net asset value during the period Spreads associated with fied income securities trading are not ascertainable and, for that reason, are not included in the trading epense ratio calculation 8 The portfolio turnover rate indicates how actively the portfolio advisor and/or portfolio sub-advisor manages the portfolio investmentsa portfolio turnover rate of 100% is equivalent to a fund buying and selling all of the securities in its portfolio once in the course of the period The higher a portfolio turnover rate in a period, the greater the trading costs payable by a fund in the period, and the greater the chance of an investor receiving taable capital gains in the year There is not necessarily a relationship between a high turnover rate and the performance of a fund 5

6 CIBC Managed Aggressive Growth Portfolio The Portfolio's Net Assets per Unit¹ - Class T6 Units Net Assets, beginning of period $ 1069 $ 1103 $ 1059 $ 1087 $ 936 $ 895 Increase (decrease) from operations: Total revenue $ 004 $ 023 $ 026 $ 028 $ 026 $ 028 Total epenses (013) (025) (026) (026) (024) (022) Realized gains (losses) for the period (001) Unrealized gains (losses) for the period 064 (001) 066 (080) Total increase (decrease) from operations 2 $ 060 $ 030 $ 109 $ 075 $ 200 $ 091 Distributions: From income (ecluding dividends) $ 032 $ $ $ $ $ From dividends From capital gains 112 Return of capital Total Distributions 3 $ 032 $ 066 $ 064 $ 112 $ 054 $ 054 Net Assets, end of period $ 1102 $ 1069 $ 1103 $ 1059 $ 1087 $ This information is derived from the Portfolio'saudited annual and unaudited interim financial statements The Portfolio adopted International Financial Reporting Standards (IFRS) on January 1, 2014 Previously, the Portfolio prepared its financial statements in accordance with Canadian Generally Accepted Accounting Principles (GAAP) as defined in Part V of the CPA Canada Handbook Under Canadian GAAP, the Portfolio measured fair values of its investments in accordance with CICA Handbook Section 3855 which required the use of bid prices for long positions and ask prices for short positions As such, the net assets per unit figure presented in the financial statements may differ from the net asset value calculated for fund pricing purposes An eplanation of these differences can be found in the notes to the financial statements issued prior to January 1, 2014 Upon adoption of IFRS, the Portfolio measures the fair value of its investments by using the close market prices, where the close market price falls within the bid-ask spread As such, the Portfolio's accounting policies for measuring the fair value of investments in the financial statements are consistent with those used in measuring the net asset value for transactions with unitholders Accordingly, the opening net asset figure as at January 1, 2013 was restated to reflect accounting policy adjustments made in accordance with IFRS All 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 actual number of units outstanding at the relevant time The total 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 additional units of the Portfolio, or both Ratios and Supplemental Data - Class T6 Units Total Net Asset Value (000s) 4 $ 422 $ 442 $ 462 $ 418 $ 124 $ 74 Number of Units Outstanding 4 38,295 41,351 41,865 39,441 11,441 7,920 Management Epense Ratio 5 237%* 238% 238% 238% 241% 239% Management Epense Ratio before waivers or absorptions 6 253%* 255% 254% 256% 268% 633% Trading Epense Ratio 7 013%* 018% 017% 016% 013% 014% Portfolio Turnover Rate 8 254% 775% 868% 4498% 631% 502% Net Asset Value per Unit $ 1102 $ 1069 $ 1103 $ 1059 $ 1087 $ 936 * Ratio has been annualized 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 total epenses of the fund (ecluding commissions and other portfolio transaction costs), incurred by or allocated to a class of units for the period shown, epressed as an annualized percentage of the daily average net asset value of that class 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 indefinitely or may be terminated at any time without notice to unitholders 7 The trading epense ratio represents total commissions and other portfolio transaction costs before income taes epressed as an annualized percentage of the daily average net asset value during the period Spreads associated with fied income securities trading are not ascertainable and, for that reason, are not included in the trading epense ratio calculation 8 The portfolio turnover rate indicates how actively the portfolio advisor and/or portfolio sub-advisor manages the portfolio investmentsa portfolio turnover rate of 100% is equivalent to a fund buying and selling all of the securities in its portfolio once in the course of the period The higher a portfolio turnover rate in a period, the greater the trading costs payable by a fund in the period, and the greater the chance of an investor receiving taable capital gains in the year There is not necessarily a relationship between a high turnover rate and the performance of a fund 6

7 CIBC Managed Aggressive Growth Portfolio The Portfolio's Net Assets per Unit¹ - Class T8 Units Net Assets, beginning of period $ 899 $ 947 $ 929 $ 1004 $ 882 $ 861 Increase (decrease) from operations: Total revenue $ 004 $ 021 $ 024 $ 020 $ 021 $ 023 Total epenses (011) (022) (024) (025) (023) (022) Realized gains (losses) for the period Unrealized gains (losses) for the period (035) Total increase (decrease) from operations 2 $ 052 $ 030 $ 078 $ 069 $ 191 $ 080 Distributions: From income (ecluding dividends) $ 036 $ $ $ $ $ From dividends From capital gains 152 Return of capital Total Distributions 3 $ 036 $ 076 $ 074 $ 152 $ 068 $ 068 Net Assets, end of period $ 917 $ 899 $ 947 $ 929 $ 1004 $ This information is derived from the Portfolio'saudited annual and unaudited interim financial statements The Portfolio adopted International Financial Reporting Standards (IFRS) on January 1, 2014 Previously, the Portfolio prepared its financial statements in accordance with Canadian Generally Accepted Accounting Principles (GAAP) as defined in Part V of the CPA Canada Handbook Under Canadian GAAP, the Portfolio measured fair values of its investments in accordance with CICA Handbook Section 3855 which required the use of bid prices for long positions and ask prices for short positions As such, the net assets per unit figure presented in the financial statements may differ from the net asset value calculated for fund pricing purposes An eplanation of these differences can be found in the notes to the financial statements issued prior to January 1, 2014 Upon adoption of IFRS, the Portfolio measures the fair value of its investments by using the close market prices, where the close market price falls within the bid-ask spread As such, the Portfolio's accounting policies for measuring the fair value of investments in the financial statements are consistent with those used in measuring the net asset value for transactions with unitholders Accordingly, the opening net asset figure as at January 1, 2013 was restated to reflect accounting policy adjustments made in accordance with IFRS All 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 actual number of units outstanding at the relevant time The total 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 additional units of the Portfolio, or both Ratios and Supplemental Data - Class T8 Units Total Net Asset Value (000s) 4 $ 759 $ 659 $ 657 $ 401 $ 332 $ 201 Number of Units Outstanding 4 82,725 73,316 69,422 43,121 33,086 22,817 Management Epense Ratio 5 248%* 245% 247% 247% 247% 248% Management Epense Ratio before waivers or absorptions 6 270%* 269% 272% 278% 270% 416% Trading Epense Ratio 7 013%* 018% 017% 016% 013% 014% Portfolio Turnover Rate 8 254% 775% 868% 4498% 631% 502% Net Asset Value per Unit $ 917 $ 899 $ 947 $ 929 $ 1004 $ 882 * Ratio has been annualized 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 total epenses of the fund (ecluding commissions and other portfolio transaction costs), incurred by or allocated to a class of units for the period shown, epressed as an annualized percentage of the daily average net asset value of that class 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 indefinitely or may be terminated at any time without notice to unitholders 7 The trading epense ratio represents total commissions and other portfolio transaction costs before income taes epressed as an annualized percentage of the daily average net asset value during the period Spreads associated with fied income securities trading are not ascertainable and, for that reason, are not included in the trading epense ratio calculation 8 The portfolio turnover rate indicates how actively the portfolio advisor and/or portfolio sub-advisor manages the portfolio investmentsa portfolio turnover rate of 100% is equivalent to a fund buying and selling all of the securities in its portfolio once in the course of the period The higher a portfolio turnover rate in a period, the greater the trading costs payable by a fund in the period, and the greater the chance of an investor receiving taable capital gains in the year There is not necessarily a relationship between a high turnover rate and the performance of a fund 7

8 CIBC Managed Aggressive Growth Portfolio Management Fees The Portfolio, either directly or indirectly, pays an annual management fee to CIBC to cover the costs of managing the Portfolio Management fees are based on the net asset value of the Portfolio and are calculated daily and paid monthly Management fees are paid to CIBC in consideration for providing, or arranging for the provision of, management, distribution, and portfolio advisory services Advertising and promotional epenses, office overhead epenses, trailing commissions, and the fees of the portfolio sub-advisor(s) are paid by CIBC out of the management fees received from the Portfolio The Portfolio is required to pay applicable taes on the management fees paid to CIBC Refer to the Simplified Prospectus for the maimum annual management fee rate for each class of units The following table shows a breakdown of the services received in consideration of the management fees, as a percentage of the management fees collected from the Portfolio for the period ended June 30, 2017 These amounts do not include waived fees or absorbed epenses Class A Units Class T4 Units Class T6 Units Class T8 Units Sales and trailing commissions paid to dealers 1084% 732% 4409% 2469% General administration, investment advice, and profit 8916% 9268% 5591% 7531% Past Performance The performance data provided assumes reinvestment of distributions only and does not take into account sales, redemption, distribution, or other optional charges payable by any unitholder that would have reduced returns Past performance does not necessarily indicate how a fund will perform in the future The Portfolio s returns are after the deduction of fees and epenses, and the difference in returns between classes of units is primarily due to differences in the management epense ratio See the section entitled Financial Highlights for the management epense ratio Year-by-Year Returns These bar charts show the annual performance of each class of units of the Portfolio for each of the periods shown, and illustrate how the performance has changed from period to period These bar charts show, in percentage terms, how an investment made on January 1 would have increased or decreased by December 31, unless otherwise indicated Class A Units 400% 200% 00% -200% -400% 224% 130% 108% 78% 78% 101% 61% 31% -34% -60% -232% a a 2017 return is for the period from January 1, 2017 to June 30,

9 CIBC Managed Aggressive Growth Portfolio Class T4 Units 400% 200% 00% -200% -03% 78% -60% 108% 225% 79% 102% 31% 61% -400% 09 a b a 2009 return is for the period from December 14, 2009 to December 31, 2009 b 2017 return is for the period from January 1, 2017 to June 30, 2017 Class T6 Units 400% 200% 00% 18% 78% 109% 225% 79% 102% 32% 61% -200% -60% -400% 09 a b a 2009 return is for the period from November 30, 2009 to December 31, 2009 b 2017 return is for the period from January 1, 2017 to June 30, 2017 Class T8 Units 400% 200% 00% 21% 78% 108% 224% 78% 102% 31% 61% -200% -60% -400% 09 a b a 2009 return is for the period from November 12, 2009 to December 31, 2009 b 2017 return is for the period from January 1, 2017 to June 30,

10 CIBC Managed Aggressive Growth Portfolio Summary of Investment Portfolio (as at June 30, 2017) This Portfolio invests in units of its Underlying Funds You can find the prospectus and additional information about the Underlying Funds by visiting wwwsedarcom The summary of investment portfolio may change due to ongoing portfolio transactions of the investment fund A quarterly update is available by visiting wwwcibccom/mutualfunds The Top Positions table shows a fund s 25 largest positions For funds with fewer than 25 positions in total, all positions are shown % of Net Asset Portfolio Breakdown Value International Equity Mutual Funds 382 US Equity Mutual Funds 316 Canadian Equity Mutual Funds 202 Canadian Bond Mutual Funds 94 Cash 04 Other Assets, Less Liabilities 02 % of Net Asset Top Positions Value CIBC International Equity Fund, Class 'O' 130 CIBC US Equity Fund, Class 'O' 110 Renaissance US Equity Income Fund, Class 'O' 108 CIBC Canadian Equity Value Fund, Class 'O' 101 Renaissance Canadian Growth Fund, Class 'O' 101 CIBC US Broad Market Inde Fund, Class 'O' 98 CIBC European Equity Fund, Class 'O' 81 CIBC Emerging Markets Fund, Class 'O' 61 Renaissance Global Real Estate Fund, Class 'O' 59 CIBC Asia Pacific Fund, Class 'O' 51 Renaissance Corporate Bond Fund, Class 'O' 49 CIBC Canadian Bond Fund, Class 'O' 45 Cash 04 Other Assets, Less Liabilities 02 10

11 The management report of fund performance may contain forward-looking statements Forward-looking statements include statements that are predictive in nature, that depend upon or refer to future events or conditions, or that include words such as epects, anticipates, intends, plans, believes, estimates, or other similar wording In addition, any statements that may be made concerning future performance, strategies, or prospects and possible future actions taken by the fund, are also forward-looking statements These statements involve known and unknown risks, uncertainties, and other factors that may cause the actual results and achievements of the fund to differ materially from those epressed or implied by such statements Such factors include, but are not limited to: general economic, market, and business conditions; fluctuations in securities prices, interest rates, and foreign currency echange rates; changes in government regulations; and catastrophic events We do not undertake, and specifically disclaim, any obligation to update or revise any forward-looking statements, whether as a result of new information, future developments, or otherwise prior to the release of the net management report of fund performance

12 CIBC Mutual Funds CIBC Family of Portfolios CIBC 18 York Street, Suite 1300 Toronto, Ontario M5J 2T8 CIBC Securities Inc Website wwwcibccom/mutualfunds CIBC Securities Inc is a wholly-owned subsidiary of CIBC and is the principal distributor of the CIBC Mutual Funds and the CIBC Family of Portfolios CIBC Family of Portfolios are mutual funds that primarily invest in other CIBC Mutual Funds To obtain a copy of the simplified prospectus, call CIBC Securities Inc at or ask your advisor