CIBC Canadian Equity Fund. Annual Management Report of Fund Performance

Transcription

1 CIBC Canadian Equity 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 Canadian Equity Fund (the Fund) seeks to provide ong-term growth through capita appreciation by investing primariy in Canadian equity securities Investment Strategies: The Fund identifies stocks with sustainabe growth characteristics from among a broad universe of Canadian stocks that trade at reasonabe vauations The Fund aims to add vaue through prudent security seection based on fundamenta, bottom-up anaysis Risk The Fund is a Canadian equity fund that is suitabe for medium- to ong-term investors who can toerate medium 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 advisor of the Fund is CIBC Asset Management Inc (CAMI or the Portfoio Advisor) The commentary that foows provides a summary of the resuts of operations for the period ended December 31, 2015 A doar figures are epressed in thousands, uness otherwise indicated The Fund's net asset vaue decreased by 17% during the period, from $301,073 as at December 31, 2014 to $248,951 as at December 31, 2015 Net redemptions of $31,972 and negative investment performance resuted in an overa decrease in net asset vaue Cass A units of the Fund posted a return of -78% for the period The Fund s benchmark, the S&P/TSX Composite Inde (the benchmark), returned -83% 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 Over the period, concerns about a sowing Chinese economy had a negative impact on Canada and its resource-heavy equity market Etreme voatiity in the Chinese stock market ed to concerns that there woud be a negative effect on weath and a potentia impact on commodity demand Compounding the issue was the sowdown in China s gross domestic product growth as it transitions from a manufacturing- and industria-focused economy to a more service- and consumer-oriented one The sharp decine in energy prices aso had a negative impact on the energy-dependent Canadian economy Moves by the Organization of the Petroeum Eporting Countries (OPEC) to maintain goba market share significanty contributed to crude benchmark pricing faing another 30% in 2015 This drop foowed the 40% decine in crude oi prices in 2014 Increased demand from ower energy prices coud not offset the ecess suppy gobay Security seection and sector aocation were the most significant contributors to the Fund s performance Moderate underweight eposure to the materias sector and a moderate overweight aocation to the consumer discretionary sector contributed to performance, as did owering the Fund s eposure to the energy sector once the Portfoio Advisor deemed that the sector was not ready to rebound The most significant individua contributors to the Fund s performance incuded Agrium Inc (Agrium), Quebecor Inc (Quebecor) and Aimentation Couche-Tard Inc (Aimentation Couche-Tard) Agrium was one of the few stocks in the materias sector with strong positive performance in 2015, and the Fund s moderate overweight aocation to the company contributed significanty to performance Agrium benefited from its stabe and predictabe retai network, which heped to offset the voatiity in its underying fertiizer commodity business Athough Quebecor is the argest wireine company in its home province of Quebec, it continues to increase subscriber numbers and profit margin from its new-entrant wireess business The company aso benefited from its reativey inepensive vauation and above-average growth Aimentation Couche-Tard benefited from acquisition opportunities as many arge eporation and production companies had to divest their non-core businesses A sight underweight aocation to the teecommunication services sector detracted from the Fund s performance The sector

2 CIBC Canadian Equity Fund outperformed the broader S&P/TSX Composite Inde in nine out of the past 10 years despite maturation in the wireine and wireess markets The sector benefited from a positive fow of funds from the resource sectors, which eevated vauations above ong-term averages Eposure to the heath care sector, particuary to the sharp decine in Vaeant Pharmaceuticas Internationa Inc s (Vaeant) share price, detracted from the Fund s performance The Fund s overweight aocation to Vaeant was not reduced eary enough Other significant individua detractors from the Fund s performance incuded Open Tet Corp (Open Tet) and Bombardier Inc (Bombardier) Open Tet is in the midst of a transition from icence-based software saes to one entrenched in the coud The Portfoio Advisor beieves the transition wi be a strong contributor to the company s ong-term performance, but Open Tet is currenty strugging with the short-term disruption of the transition The Fund s sma overweight aocation to Bombardier eary in the year negativey affected performance as the company missed key miestones The Portfoio Advisor has since sod the Fund s hodings in Bombardier The Portfoio Advisor added a new hoding in Aimentation Couche-Tard as the ow price of oi has not affected its fue margins, but has resuted in increased demand and additiona disposabe income Doarama Inc was added to the Fund as it continues to be one of the highest-growth companies in Canada, in the Portfoio Advisor s view Boardwak REIT (Boardwak) strugged as a resut of its eposure to Aberta at a time of faing crude oi prices However, since occupancy rates remain high and there has been minima impact on the company s earnings, the Portfoio Advisor added a new hoding in Boardwak to the Fund The Portfoio Advisor aso introduced internationa markets eposure to the Fund through a hoding in S&P 500 Inde ETF as we as individua hodings such as The Backstone Group LP, Teas Instruments Inc, Union Pacific Corp, MasterCard Inc, Cimare Energy Co and EOG Resources Inc The Fund s eisting hoding in Brookfied Asset Management Inc was increased, as the company has benefited from strength in its subsidiaries Hodings eiminated from the Fund incuded CI Financia Corp, because of its epensive vauation, and Teck Resources Ltd, as a resut of a sowing Chinese economy as we as poor suppy and demand characteristics in the coa industry The Portfoio Advisor trimmed hodings of Fortis Inc, Open Tet, Progressive Waste Soutions Ltd, Crescent Point Energy Corp and Intact Financia Corp to make adjustments to the Fund s weightings The Fund s hoding in Vaeant was reduced foowing additiona news of questionabe speciaty pharmacy saes and management succession concerns 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 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 makes 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 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 securities 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 Advisor in partia echange for processing trades through them (referred to in the industry as soft doar arrangements) These goods 2

3 CIBC Canadian Equity Fund and services are paid for with a portion of the brokerage commissions and assist the Portfoio Advisor with investment decision-making services for the Fund or reate directy to the eecution of portfoio transactions on behaf of the Fund 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 paid brokerage commissions and other fees of $22,259 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 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 Custodian may hire sub-custodians for the Fund The fees and spreads for services of the Custodian directy reated to the eecution of portfoio transactions by the Fund are paid by CAMI and/or deaer(s) directed by CAMI, up to the amount of the credits generated under soft doar arrangements from trading on behaf of the 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 Canadian Equity 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 $ 2572 $ 2567 $ 2284 $ 2198 $ 2419 Increase (decrease) from operations: Tota revenue $ 073 $ 079 $ 073 $ 069 $ 063 Tota epenses (063) (067) (058) (053) (056) Reaized gains (osses) for the period Unreaized gains (osses) for the period (223) (066) (412) Tota increase (decrease) from operations 2 $ (186) $ 197 $ 276 $ 113 $ (201) Distributions: From income (ecuding dividends) $ $ $ $ $ From dividends From capita gains Return of capita Tota Distributions 3 $ $ 181 $ $ 028 $ 014 Net Assets, end of period $ 2372 $ 2572 $ 2567 $ 2281 $ 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 $ 238,319 $ 286,505 $ 299,209 $ 307,127 $ 340,735 Number of Units Outstanding 4 10,046,558 11,138,325 11,654,827 13,447,268 15,477,684 Management Epense Ratio 5 238% 239% 240% 238% 239% Management Epense Ratio before waivers or absorptions 6 238% 239% 241% 239% 239% Trading Epense Ratio 7 007% 007% 007% 004% 008% Portfoio Turnover Rate % 3221% 2622% 1724% 3006% Net Asset Vaue per Unit $ 2372 $ 2572 $ 2567 $ 2284 $ This information is presented as at December 31 of the period(s) shown 5 Management epense ratio is based on the tota epenses of the fund (ecuding commissions and other portfoio transaction costs), incurred by or aocated to a cass of units for the period shown, epressed as an annuaized percentage of the daiy average net asset vaue of that cass during the period 6 The decision to waive and/or absorb management fees and operating epenses is at the discretion of the Manager The practice of waiving and/or absorbing management fees and operating epenses may continue indefinitey or may be terminated at any time without notice to unithoders 7 The trading epense ratio represents tota commissions and other portfoio transaction costs before income taes epressed as an annuaized percentage of the daiy average net asset vaue during the period Spreads associated with fied income securities trading are not ascertainabe and, for that reason, are not incuded in the trading epense ratio cacuation 8 The portfoio turnover rate indicates how activey the portfoio advisor and/or portfoio sub-advisor manages the portfoio investmentsa portfoio turnover rate of 100% is equivaent to a fund buying and seing a of the securities in its portfoio once in the course of the period The higher a portfoio turnover rate in a period, the greater the trading costs payabe by a fund in the period, and the greater the chance of an investor receiving taabe capita gains in the year There is not necessariy a reationship between a high turnover rate and the performance of a fund 4

5 CIBC Canadian Equity Fund The Fund's Net Assets per Unit¹ - Cass O Units a Net Assets, beginning of period $ 1161 $ 1130 $ 982 $ 1000 b Increase (decrease) from operations: Tota revenue $ 033 $ 035 $ 032 $ 031 Tota epenses (001) (001) (001) Reaized gains (osses) for the period Unreaized gains (osses) for the period (100) (029) 088 (015) Tota increase (decrease) from operations 2 $ (055) $ 116 $ 152 $ 033 Distributions: From income (ecuding dividends) $ $ $ $ From dividends From capita gains Return of capita Tota Distributions 3 $ $ 081 $ $ 037 Net Assets, end of period $ 1096 $ 1161 $ 1130 $ 981 a Information presented is for the period from January 25, 2012 to December 31, 2012 b Initia offering price 1 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 a Tota Net Asset Vaue (000s) 4 $ 10,632 $ 14,568 $ 14,966 $ 11,934 Number of Units Outstanding 4 969,667 1,254,790 1,323,859 1,215,385 Management Epense Ratio 5 000% 000% 000% 000%* Management Epense Ratio before waivers or absorptions 6 003% 003% 000% 000%* Trading Epense Ratio 7 007% 007% 007% 004% Portfoio Turnover Rate % 3221% 2622% 1724% Net Asset Vaue per Unit $ 1096 $ 1161 $ 1130 $ 982 a Information presented is for the period from January 25, 2012 to December 31, 2012 * Ratio has been annuaized 4 This information is presented as at December 31 of the period(s) shown 5 Management epense ratio is based on the tota epenses of the fund (ecuding commissions and other portfoio transaction costs), incurred by or aocated to a cass of units for the period shown, epressed as an annuaized percentage of the daiy average net asset vaue of that cass during the period 6 The decision to waive and/or absorb management fees and operating epenses is at the discretion of the Manager The practice of waiving and/or absorbing management fees and operating epenses may continue indefinitey or may be terminated at any time without notice to unithoders 7 The trading epense ratio represents tota commissions and other portfoio transaction costs before income taes epressed as an annuaized percentage of the daiy average net asset vaue during the period Spreads associated with fied income securities trading are not ascertainabe and, for that reason, are not incuded in the trading epense ratio cacuation 8 The portfoio turnover rate indicates how activey the portfoio advisor and/or portfoio sub-advisor manages the portfoio investmentsa portfoio turnover rate of 100% is equivaent to a fund buying and seing a of the securities in its portfoio once in the course of the period The higher a portfoio turnover rate in a period, the greater the trading costs payabe by a fund in the period, and the greater the chance of an investor receiving taabe capita gains in the year There is not necessariy a reationship between a high turnover rate and the performance of a fund 5

6 CIBC Canadian Equity 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 1748% Genera administration, investment advice, and profit 8252% 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 The bar chart shows the annua performance of the Fund for each of the periods shown, and iustrates how the performance has changed from period to period The bar chart shows, 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 Canadian Equity Fund Cass O Units a 2012 return is for the period from January 25, 2012 to December 31, 2012 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 S&P/TSX Composite Inde 1 Year 3 Years 5 Years 10 Years* or Since Inception* Inception Date Cass A units -78% 36% 13% 18% November 30, 1988 S&P/TSX Composite Inde -83% 46% 23% 44% Cass O units -56% 61% 52% January 25, 2012 S&P/TSX Composite Inde -83% 46% 40% * If a cass of units has been outstanding for ess than 10 years, the annua compound return since inception is shown S&P/TSX Composite Inde is intended to represent the Canadian equity market and incudes the argest companies isted on the TSX A discussion of the reative performance of the Fund compared to its primary benchmark(s) can be found in Resuts of Operations 7

8 CIBC Canadian Equity 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 Cash and cash equivaents are shown in tota as one position % of Net Asset Portfoio Breakdown Vaue Financias 437 Energy 156 Consumer Discretionary 102 Other Equities 85 Information Technoogy 55 Industrias 55 Materias 41 Teecommunication Services 39 Cash & Cash Equivaents 24 Other Assets, ess Liabiities 04 Corporate Bonds 03 Forward & Spot Contracts -01 % of Net Asset Vaue Top Positions Toronto-Dominion Bank (The) 73 Roya Bank of Canada 68 Manuife Financia Corp 54 Bank of Nova Scotia 48 Brookfied Asset Management Inc, Cass 'A' 47 Canadian Nationa Raiway Co 47 Canadian Imperia Bank of Commerce 36 Eement Financia Corp 35 Sun Life Financia Inc 33 Suncor Energy Inc 27 CGI Group Inc, Cass 'A' 27 Aimentation Couche-Tard Inc, Cass 'B' 26 TELUS Corp 26 Canadian Natura Resources Ltd 25 Quebecor Inc, Cass 'B' 24 Cash & Cash Equivaents 24 SPDR S&P 500 ETF Trust 22 Vaeant Pharmaceuticas Internationa Inc 22 Magna Internationa Inc, Cass 'A' 21 Enbridge Inc 21 TransCanada Corp 20 AtaGas Ltd 19 Gidan Activewear Inc 18 ARC Resources Ltd 16 Agrium Inc 16 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