CIBC Emerging Markets Fund. Annual Management Report of Fund Performance

Transcription

1 CIBC Emerging Markets Fund 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 Emerging Markets Fund (the Fund) seeks to provide ong-term growth through capita appreciation by investing primariy in equity securities of companies operating in or earning significant revenues from an emerging country An emerging country is any country incuded in the MSCI Emerging Markets Inde Investment Strategies: The Fund uses a bottom-up approach for company seection, integrating both traditiona and quantitative research The approach seeks to identify companies that are trading at attractive reative vauations, ehibiting sustainabe positive fundamenta change, and have earnings estimates revisions This bottom-up approach aso drives country and sector positioning Risk The Fund is an emerging markets equity fund that is suitabe for ong-term investors who can toerate high investment risk For the period ended December 31, 2015, the Fund s overa eve of risk remains as discussed in the simpified prospectus Resuts of Operations The portfoio sub-advisor of the Fund is RS Investment Management Co LLC (the sub-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 Fund's net asset vaue increased by 8% during the period, from $109,659 as at December 31, 2014 to $118,084 as at December 31, 2015 Net saes of $3,555 and positive investment performance resuted in an overa increase in net asset vaue Cass A units of the Fund posted a return of 19% for the period The Fund s benchmark, the MSCI Emerging Markets Inde (the benchmark), returned 24% for the same period The Fund s return is after the deduction of fees and epenses, unike the benchmark See Past Performance for the returns of other casses of units offered by the Fund The MSCI Emerging Markets Inde decined significanty over the period, ending its worst year since 2011 The Braziian rea, South African rand, Russian rube and Turkish ira decined by more than 20% Earnings-per-share (EPS) growth for emerging markets companies fe by 2% in 2015, and EPS revisions decined 25% Since 2010, the ack of EPS growth has increased the sensitivity of emerging markets to changes in the risk premium (the additiona return investors epect to receive for hoding higher-risk securities), and 2015 was no eception 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) As a resut, divergent country performance persisted and deveoping nations continued to evove as an uneven group Stock seection in Brazi detracted from the Fund s reative performance, as did stock seection in the energy sector Individua detractors from performance incuded South Korea s BNK Financia Group Inc (formery BS Financia Group Inc) (BNK) and South Africa s Standard Bank Group Ltd (Standard Bank) BNK s share price decined after announcing a rights issue to raise capita, whie Standard Bank s share price decined amid economic and credit market uncertainty for South Africa Chinese e-commerce company VipShop Hodings Ltd aso detracted from the Fund s performance The company s stock price decined on concerns about sowing revenue trends and increased competition in China s e-commerce sector From a regiona perspective, stock seection in Eastern Europe, the Midde East and Africa (EEMEA) and Asia contributed to the Fund s reative performance In terms of sectors, stock seection in the industrias and consumer discretionary sectors significanty contributed to the Fund s reative performance The most significant individua contributors to performance Shenzhen Internationa Hodings Ltd (Shenzhen Internationa), Hota Industria Manufacturing Co Ltd (Hota) and GS Retai Co Ltd (GS Retai)

2 CIBC Emerging Markets Fund China s Shenzhen Internationa is an infrastructure and ogistics company that is benefiting from the buid-out of Internet capacity in China Taiwanese automotive suppier Hota manufactures automotive gears and aes The company has been epanding its goba market share in key segments through its ower abour costs and currency advantages GS Retai, a retaier of beauty and gift products in South Korea, aso contributed to performance GS Retai has been a beneficiary of South Korea s improved consumer spending and recent interest rate cuts The sub-advisor added Man Wah Hodings Ltd (Man Wah)tothe Fund Man Wah is the argest maker of recining sofas in China with 20% market share, and the fourth-argest in the US with 85% market share The sub-advisor epects the company to have doube-digit saes growth as a resut of soid housing markets in China and the US, structura growth opportunities in China and new product ines In addition to recovering saes, the sub-advisor beieves Man Wah shoud be abe to deiver margin epansion driven by ow input costs and a weaker Chinese currency The Fund s eisting hoding in PT Teekomunikasi Indonesia Persero TBK (Teekom Indonesia) was increased Indonesia remains a growth market for wireess data with smartphone penetration at 20% to 25%, which the sub-advisor beieves shoud contribute to earnings growth of 12% for the company Teekom Indonesia continues to benefit from strong data usage and higher 3G/4G device adoption in the region The wireess segment remains strong, contributing to earnings growth of 20% year over year In a ow-growth goba environment, Teekom Indonesia provides soid earnings growth of 10% and a 45% yied, and the sub-advisor beieves the stock is attractivey vaued The sub-advisor eiminated the Fund s hoding in Taiwan Paiho Ltd, a eading manufacturer of webbings, straps and fastening tapes for shoes and appare, and eastic cords and bands The company is the argest goba fastening tape maker, with 10% market share After soid reative returns for the stock, near-term saes for the company appeared to be running behind epectations at the end of the fourth quarter In addition, potentia risks remained with respect to saes and inventory voatiity given disappointing saes performance from some US retaiers The Fund s hoding in Hana Tour Service Inc (Hana Tour)was trimmed HanaTour is the argest trave company in Korea, engaged in trave management services, incuding packaging tours, independent tours, honeymoon tours, gof tours and other domestic and overseas tours The company benefited from strong growth in tourism in Asia and a reduction in trave restrictions for various Asian countries However, as a resut of some concerns about Korean consumer spending, the sub-advisor decreased the hoding to fund new investments Recent Deveopments During the period, there were no events or activities that had a materia impact on the Fund 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 (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 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 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 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 (incuding futures) 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 (incuding forwards) 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 2

3 CIBC Emerging Markets Fund 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, CIBC 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 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 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 Independent Review Committee (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 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 3

4 CIBC Emerging Markets 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 December 31 The Fund's Net Assets per Unit¹ - Cass A Units Net Assets, beginning of period $ 1230 $ 1183 $ 1185 $ 1061 $ 1497 Increase (decrease) from operations: Tota revenue $ 035 $ 033 $ 036 $ 027 $ 043 Tota epenses (052) (051) (046) (034) (040) Reaized gains (osses) for the period (172) (063) 075 Unreaized gains (osses) for the period (429) Tota increase (decrease) from operations 2 $ 033 $ 049 $ (010) $ 137 $ (351) Distributions: From income (ecuding dividends) $ $ $ $ $ 001 From dividends From capita gains 084 Return of capita Tota Distributions 3 $ $ $ $ $ 085 Net Assets, end of period $ 1254 $ 1230 $ 1183 $ 1183 $ This information is derived from the Fund's audited annua 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 $ 26,309 $ 28,361 $ 32,017 $ 36,559 $ 41,583 Number of Units Outstanding 4 2,098,116 2,305,504 2,707,321 3,086,269 3,912,979 Management Epense Ratio 5 301% 301% 303% 299% 302% Management Epense Ratio before waivers or absorptions 6 392% 411% 408% 405% 400% Trading Epense Ratio 7 065% 080% 075% 028% 033% Portfoio Turnover Rate % 14653% 14308% 4532% 5158% Net Asset Vaue per Unit $ 1254 $ 1230 $ 1183 $ 1185 $ 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 The trading epense ratio incudes the fees attributabe to echange traded funds 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 Emerging Markets Fund The Fund's Net Assets per Unit¹ - Cass O Units Net Assets, beginning of period $ 932 $ 887 $ 883 $ 783 $ 1116 Increase (decrease) from operations: Tota revenue $ 027 $ 025 $ 027 $ 021 $ 032 Tota epenses (010) (010) (009) Reaized gains (osses) for the period (141) (046) 054 Unreaized gains (osses) for the period (003) (316) Tota increase (decrease) from operations 2 $ 046 $ 067 $ 034 $ 121 $ (230) Distributions: From income (ecuding dividends) $ 020 $ 019 $ 022 $ 018 $ 033 From dividends From capita gains 064 Return of capita Tota Distributions 3 $ 020 $ 019 $ 022 $ 018 $ 097 Net Assets, end of period $ 959 $ 932 $ 887 $ 882 $ This information is derived from the Fund's audited annua 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 O Units Tota Net Asset Vaue (000s) 4 $ 91,775 $ 81,298 $ 70,140 $ 56,012 $ 48,574 Number of Units Outstanding 4 9,568,550 8,725,742 7,907,641 6,341,148 6,190,571 Management Epense Ratio 5 000% 000% 000% 000% 000% Management Epense Ratio before waivers or absorptions 6 001% 002% 001% 002% 001% Trading Epense Ratio 7 065% 080% 075% 028% 033% Portfoio Turnover Rate % 14653% 14308% 4532% 5158% Net Asset Vaue per Unit $ 959 $ 932 $ 887 $ 883 $ 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 The trading epense ratio incudes the fees attributabe to echange traded funds 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 Emerging Markets 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 December 31, 2015 These amounts do not incude waived fees or absorbed epenses Cass A Units Saes and traiing commissions paid to deaers 2200% Genera administration, investment advice, and profit 7800% 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 6

7 CIBC Emerging Markets Fund Cass O Units a 2010 return is for the period from June 1, 2010 to December 31, 2010 Annua Compound Returns This tabe shows the annua compound return of each cass of units of the Fund for each indicated period ended on December 31, 2015 The annua compound tota return is aso compared to the Fund s benchmark(s) The Fund s benchmark is the MSCI Emerging Markets Inde 1 Year 3 Years 5 Years 10 Years* or Since Inception* Inception Date Cass A units 19% 19% -20% 26% December 11, 1995 MSCI Emerging Markets Inde 24% 46% 21% 58% Cass O units 51% 50% 10% 46% June 1, 2010 MSCI Emerging Markets Inde 24% 46% 21% 56% * If a cass of units has been outstanding for ess than 10 years, the annua compound return since inception is shown 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 A discussion of the reative performance of the Fund compared to its primary benchmark(s) can be found in Resuts of Operations 7

8 CIBC Emerging Markets Fund Summary of Investment Portfoio (as at December 31, 2015) 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 China 181 South Korea 159 Other Equities 145 Taiwan 112 Hong Kong 94 India 85 Meico 55 South Africa 46 Brazi 39 Russia 29 Indonesia 28 Cash 27 % of Net Asset Vaue Top Positions Samsung Eectronics Co Ltd 44 Taiwan Semiconductor Manufacturing Co Ltd 39 Tencent Hodings Ltd 37 China Mobie Ltd 28 China Construction Bank Corp, Cass 'H' 27 Cash 27 Naspers Ltd, Series 'N' 26 ishares MSCI Emerging Markets Inde Fund 20 Aibaba Group Hoding Ltd 16 Bank of China Ltd, Cass 'H' 14 PT Teekomunikasi Indonesia Persero TBK, Series 'B' 14 Ping An Insurance (Group) Co of China Ltd 14 Infosys Technoogies Ltd 12 Tata Motors Ltd, ADR 12 CTBC Financia Hoding Co Ltd 11 Yes Bank Ltd 11 Kia Motors Corp 11 Turkiye Garanti Bankasi AS 11 LUKOIL PJSC, ADR 11 China Resources Land Ltd 11 KT&G Corp 11 HDFC Bank Ltd, ADR 11 China Resources Gas Group Ltd 10 Steinhoff Internationa Hodings NV 10 Itau Unibanco Hoding SA, Preferred 10 8

9 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

10 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