Imperial Global Equity Income Pool. Annual Management Report of Fund Performance

Transcription

1 Imperia Goba Equity Income Poo Annua Management Report of Fund Performance for the financia year ended December 31, 2014 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 reports of the investment fund If you have not received a copy of the annua financia reports with this annua management report of fund performance, you can get a copy of the annua financia reports 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: Imperia Goba Equity Income Poo (the Poo) seeks to provide income and ong-term capita appreciation by investing primariy in goba equity and debt securities Investment Strategies: The Poo empoys a combination of investment styes that may incude growth, vaue, core, and income-generating, to identify goba securities with attractive yieds and capita appreciation potentia to make investment decisions Risk The Poo is a goba equity fund that is suitabe for medium to ong-term investors who can toerate medium investment risk For the period ended December 31, 2014, the Poo s overa eve of risk remains as discussed in the simpified prospectus Resuts of Operations Mutipe portfoio sub-advisors provide investment advice and investment management services to the Poo These portfoio sub-advisors use different investment styes and the percentage of the Poo aocated to each portfoio sub-advisor wi change from time to time BackRock Financia Management Inc (BackRock) US Large-Cap Equity, approimatey 50% Keinwort Benson Investors Internationa Limited (Keinwort Benson) Internationa Equity, approimatey 50% The commentary that foows provides a summary of the resuts of operations for the period ended December 31, 2014 A doar figures are epressed in thousands, uness otherwise indicated The Poo's net asset vaue increased by 60% during the period, from $843,488 as at December 31, 2013 to $1,353,093 as at December 31, 2014 Net saes of $383,689 in the period incuded redemptions of $62,047 due to rebaancing of a portfoio product that hods units of the Poo Positive investment performance aso contributed to an overa increase in net asset vaue During the period, the strength of the goba economy ed to strong positive returns for internationa equities Cass A units of the Poo posted a return of 125% for the period The Poo s benchmark, the MSCI Word Inde (the benchmark), returned 150% for the same period The Poo s return is after the deduction of fees and epenses, unike the benchmark US equity markets posted gains over the period despite the end of the US Federa Reserve Board s (the Fed s) third round of quantitative easing (QE) and a sharp drop in crude oi prices in the second haf of the year These gains were argey in response to improving economic data that stemmed from the Fed s continued poicy of ow interest rates, strong jobs growth, weak infation, and rising consumer confidence Positive corporate earnings figures and increased mergers and acquisitions activity aso contributed to equity market gains The strengthening US economy drove the positive performance of goba equities Goba centra banks aso continued to introduce QE measures, most notaby in Japan and the UK, whie the European Centra Bank hinted at a pan to introduce additiona QE measures to improve the economic performance of the eurozone Conversey, geopoitica concerns in Eastern Europe and the Midde East, as we as the faing price of oi in the second haf of the period, had the potentia to derai goba economic growth The US Large-Cap Equity component of the Poo is composed amost entirey of US mutinationas, with a sma aocation to foreign domicied hodings isted in Canada, Austraia, or Europe The shares of US isted companies were reativey strong compared to goba equities, and a heavier weighing in the US contributed to the component s performance over the period Stock seection in the financias, industrias, consumer discretionary, and utiities sectors contributed to performance In financias, notabe contributors to the component s performance incuded Wes Fargo & Co, JPMorgan Chase & Co, and Bank of America Corp In industrias, rairoad and aerospace & defense hodings, incuding Northrop Grumman Corp and Raytheon Co, significanty contributed to the component s

2 Imperia Goba Equity Income Poo performance Other individua contributors to performance incuded Home Depot Inc and Union Pacific Corp, which both benefited from stronger voumes and a recovering domestic economy An underweight position in the information technoogy sector significanty detracted from the component s performance Specificay, underweight positions in technoogy hardware, storage, and peripheras hodings ike Appe Inc and Hewett-Packard Co detracted from performance, as these companies posted strong gains over the period A combination of stock seection and an underweight position in the heath care sector aso detracted from the component s performance An overweight position in energy companies such as Chevron Corp, Tota SA and Marathon Oi Corp detracted from performance, as these companies decined in response to the faing price of oi in the second haf of 2014 BackRock increased the component s positions in the industrias, financias, and information technoogy sectors during the period These are sectors that BackRock beieves offer the strongest fundamentas, as we as the greatest potentia for dividend growth and reativey attractive returns Notabe additions during the period incuded CME Group Inc, CSX Corp, Lockheed Martin Corp, Morgan Staney, and Bank of America Corp The component s positions that were increased during the period incuded Citigroup Inc, Home Depot Inc, Inte Corp, and MetLife Inc The sub-advisor reduced the component s eposure to traditionay more defensive sectors, incuding the consumer stapes, teecommunication services, and utiities sectors, as the sub-advisor views these sectors as ess compeing due to their current vauations or imited dividend growth potentia The sub-advisor aso reduced seected energy and materias sector hodings Hodings sod from the component incuded Edison Internationa, Loriard Inc, Deere & Company, and Newmont Mining Corp The component s positions that were decreased incuded The Coca-Coa Co, Genera Eectric Co, Internationa Business Machines Corp, and Phiip Morris Internationa Inc In the Internationa Equity component of the Poo, stock seection in Europe and Japan contributed to performance, as did stock seection in the capita goods and diversified financias industries Individua contributors to the component s performance incuded AstraZeneca PLC, Zurich Insurance Services AG, and Enagas AstraZeneca s share price was bostered by the company s decision to turn down a merger offer by Pfizer Inc Zurich Insurance s management epects the company to generate biions of doars in ecess capita, with the potentia for some of this capita to be returned to sharehoders Conversey, stock seection in the pharmaceutica and biotechnoogy subsectors detracted from the component s performance Individua detractors from performance incuded Nokian Renkaat OYJ, BASF SE, and Seadri Ltd During the period, BASF announced the canceation of an asset swap dea with Gazprom OAO, a Russian energy company Keinwort Benson added a number of hodings in the energy sector to the component during the fourth quarter of 2014 when oi prices were faing, incuding Statoi ASA (Norway), Amec Foster Wheeer PLC (UK), and Neste Oi OYJ (Finand) Keinwort Benson increased the component s position in UK bank HSBC Hodings PLC, as we as in BP PLC (UK) Keinwort Benson sod a number of the component s hodings during the period, incuding ENI SpA (Itay), Seadri (Norway), and Tota SA (France), as these hodings no onger passed the sub-advisor s dividend sustainabiity criteria Recent Deveopments On January 1, 2014, CIBC Asset Management Inc, CIBC Asset Management Hodings Inc, CIBC Private Investment Counse Inc, and CIBC Goba Asset Management Inc (CGAM) were amagamated to form one ega entity, CIBC Asset Management Inc (CAMI), a whoy-owned subsidiary of Canadian Imperia Bank of Commerce (CIBC or the Manager) This amagamation has no impact on the business, operations or affairs of the Poo CAMI wi continue to act as portfoio advisor of the Poo CAMI is the asset management arm of CIBC Internationa Financia Reporting Standards (IFRS) Investment companies that are pubicy accountabe enterprises or investment funds to which Nationa Instrument Investment Fund Continuous Discosure is appicabe, are required to adopt IFRS for the first time for interim financia reports and annua financia statements reating to annua periods beginning on or after January 1, 2014 As a resut, the Poo adopted IFRS as of January 1, 2014 and is pubishing its first annua financia statements, prepared in accordance with IFRS for the year ended December 31, 2014 The 2014 interim financia reports and annua financia statements incude 2013 comparative financia information and opening Statements of Financia Position as at January 1, 2013 As at December 31, 2014, the impact of the Poo's transition to IFRS is summarized as foows: Under IFRS, the Poo measures the fair vaue of its investments using the guidance in IFRS 13 Fair Vaue Measurement, which requires that if an asset or a iabiity has a bid price or an ask price, then its fair vaue is to be based on a price within the bid-ask spread that is most representative of fair vaue It aso aows the use of mid-market pricing or other pricing conventions that are used by market participants as a practica epedient for fair vaue measurements within a bid-ask spread The Poo has adopted accounting poicies for the vauation of investments to utiize mid-market prices that aign more cosey with the cacuation of net asset vaue (NAV) used to price unithoder transactions (Transaction NAV) IFRS 10 Consoidated Financia Statements provides an eception to the consoidation requirements and requires an investment entity to account for its subsidiaries at fair vaue through profit or oss The Manager has concuded that the Poo meets the definition of an investment entity as at December 31, 2014, December 31, 2013, January 1, 2013 and throughout the periods ended December 31, 2013 and December 31, 2014 Under Canadian generay accepted accounting principes (GAAP), the Poo accounted for its redeemabe units as equity Under IFRS, Internationa Accounting Standard 32 Financia Instruments Presentation (IAS 32) requires that units or shares of equity which incude a contractua obigation for the issuer to repurchase or redeem them for cash or another financia asset be cassified as a financia iabiity As at December 31, 2014, December 31,

3 Imperia Goba Equity Income Poo and January 1, 2013, the Poo s units did not meet the criteria in IAS 32 for cassification as equity and therefore have been recassified as financia iabiities on the Statements of Financia Position IFRS requires the presentation of a Statement of Cash Fows, incuding comparatives for 2013 The Poo has not previousy presented this statement as was permitted under Canadian GAAP Other recassifications, presentation differences, and additiona discosures are required in the financia statements to compy with IFRS Reated Party Transactions CIBC and its affiiates have the foowing roes and responsibiities with respect to the Poo, and receive the fees described beow in connection with their roes and responsibiities Manager CIBC is the Manager of the Poo CIBC receives management fees with respect to the day-to-day business and operations of the Poo The Poo pays the Manager a maimum annua management fee rate of 025% of the net asset vaue of the Poo, as described in the section entited Management Fees Trustee CIBC Trust Corporation (CIBC Trust), a whoy-owned subsidiary of CIBC, is the trustee (the Trustee) of the Poo The Trustee hods tite to the property (cash and securities) of the Poo on behaf of its unithoders Portfoio Advisor The portfoio advisor provides, or arranges to provide, investment advice and portfoio management services to the Poo CAMI, a whoy-owned subsidiary of CIBC, is the portfoio advisor (the Portfoio Advisor) of the Poo Discretionary Managers As at the date of this report, units of the Poo are offered through discretionary investment management services provided by certain subsidiaries of CIBC (coectivey, the Discretionary Managers) The Discretionary Managers may incude CIBC Trust and CAMI The Discretionary Managers arrange to purchase, switch, and redeem units of the Poo on behaf of their cients who have entered into discretionary investment management agreements with one of the Discretionary Managers The Discretionary Managers are the registered unithoders of the Poos for the purposes of receiving a unithoder materias and having the right to vote a proies with respect to units of the Poo Units of the Poo are aso offered to investors in connection with certain products offered by affiiated deaers pursuant to the terms of the account agreements governing such products There are no compensation arrangements with these deaers in respect to the sae of units of the Poo However, CIBC Trust receives fees from its cients for offering discretionary management services and, from these fees, CIBC Trust may pay affiiated deaers and other CIBC members for services provided in connection with the cient s discretionary investment managed account, which may hod units of the Poo CIBC receives fees from CIBC Trust for the services of CIBC advisors that assist investors with opening discretionary investment management accounts where CIBC Trust acts as the Discretionary Manager and for acting as the investors ongoing reationship manager CIBC is responsibe for the remuneration of the CIBC advisors and may pay the CIBC advisors out of such fees Further detais of the arrangement between CIBC and CIBC Trust may be found in the discretionary investment management agreement between CIBC Trust and investors CAMI receives fees from their cients for offering discretionary investment managed accounts, which may hod units of the Poo, and may pay a portion of such fees to their investment counseors 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 Word Markets Inc (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 Poo A spread is the difference between the bid and ask prices for a security in the appicabe marketpace, with respect to the eecution of portfoio transactions The spread wi differ based upon various factors such as the type and iquidity of the security Deaers, incuding CIBC WM and CIBC Word Markets Corp, may furnish goods and services, other than order eecution, to the Portfoio Advisor and any portfoio sub-advisors in partia echange for processing trades through them (referred to in the industry as soft doar arrangements) These goods and services are paid for with a portion of the brokerage commissions and assist the Portfoio Advisor and any portfoio sub-advisors with investment decision-making services for the Poo or reate directy to the eecution of portfoio transactions on behaf of the Poo As per the terms of the portfoio sub-advisory agreement, such soft doar arrangements are in compiance with appicabe aws In addition, the Manager may enter into commission recapture arrangements with certain deaers with respect to the Poo Any commission recaptured wi be paid to the Poo During the period, the Poo 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 3

4 Imperia Goba Equity Income Poo Poo Transactions The Poo 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 debt securities of CIBC or an issuer reated to CIBC, non-echange-traded in a primary offering and in the secondary market; invest in or hod debt securities of CIBC or issuers reated to a portfoio sub-advisor purchased 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 party 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 The IRC reviews the Reated Party Transactions for which they have issued standing instructions at east annuay 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 Poo (the Custodian) The Custodian hods a cash and securities for the Poo 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 Poo incuding record-keeping and processing of foreign echange transactions The Custodian may hire sub-custodians for the Poo The fees and spreads for services of the Custodian directy reated to the eecution of portfoio transactions intiated by CAMI as the Portfoio Advisor 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 by CAMI on behaf of the Poo during that month A other fees and spreads for the services of the Custodian are paid by the Manager and charged to the Poo 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 Poo, incuding securities ending, fund accounting and reporting, and portfoio vauation Such servicing fees are paid by the Manager and charged to the Poo on a recoverabe basis CIBC indirecty owns a 50% interest in CIBC GSS 4

5 Imperia Goba Equity Income Poo Financia Highights The foowing tabes show seected key financia information about the Poo and are intended to hep you understand the Poo s financia performance for the period ended December 31 The Poo's Net Assets per Unit¹ - Cass A Units Net Assets, beginning of period $ 1029 $ 838 $ 784 $ 816 $ 807 Increase (decrease) from operations: Tota revenue $ 042 $ 032 $ 028 $ 029 $ 026 Tota epenses (007) (007) (002) (001) (001) Reaized gains (osses) for the period (010) (022) (013) Unreaized gains (osses) for the period (009) 040 Tota increase (decrease) from operations 2 $ 121 $ 257 $ 099 $ (003) $ 052 Distributions: From income (ecuding dividends) $ 050 $ 020 $ 023 $ 025 $ 021 From dividends From capita gains Return of capita Tota Distributions 3 $ 067 $ 058 $ 048 $ 028 $ 025 Net Assets, end of period $ 1088 $ 1029 $ 838 $ 784 $ This information is derived from the Poo's audited annua financia statements The Poo adopted IFRS on January 1, 2014 Previousy, the Poo 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 Poo 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 Poo 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 Poo'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 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 Poo, or both Ratios and Suppementa Data - Cass A Units Tota Net Asset Vaue (000s) 4 $ 1,353,093 $ 843,488 $ 153,940 $ 72,911 $ 44,227 Number of Units Outstanding 4 124,352,886 81,947,967 18,376,433 9,301,738 5,418,726 Management Epense Ratio 5 016% 018% 021% 018% 017% Management Epense Ratio before waivers or absorptions 6 033% 042% 053% 059% 085% Trading Epense Ratio 7 011% 018% 015% 013% 013% Portfoio Turnover Rate % 3263% 4931% 4983% 3928% Net Asset Vaue per Unit $ 1088 $ 1029 $ 838 $ 784 $ 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 investments A 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 Imperia Goba Equity Income Poo Management Fees The Poo, either directy or indirecty, pays an annua management fee to CIBC to cover the costs of managing the Poo Management fees are based on the net asset vaue of the Poo 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 Poo The Poo 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 the period ended December 31, 2014, of the management fees coected from the Poo, 100% was attributabe to genera administration, investment advice, and profit 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 Poo s returns are after the deduction of fees and epenses See the section entited Financia Highights for the management epense ratio Year-by-Year Returns The bar chart shows the annua performance of the Poo 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 a 2008 return is for the period from February 4, 2008 to December 31, 2008 Annua Compound Returns This tabe shows the annua compound return of each cass of units of the Poo for each indicated period ended on December 31, 2014 The annua compound tota return is aso compared to the Poo s benchmark(s) The Poo s primary benchmark is the MSCI Word Inde The Poo s bended benchmark (Bended Benchmark) is comprised of the foowing: 50% MSCI EAFE Inde 50% S&P 500 Inde 6

7 Imperia Goba Equity Income Poo 1 Year 3 Years 5 Years 10 Years* or Since Inception* Inception Date Cass A units 125% 186% 116% 60% February 4, 2008 MSCI Word Inde 150% 212% 130% 73% Bended Benchmark 89% 185% 117% 60% * If a cass of units has been outstanding for ess than 10 years, the annua compound return since inception is shown MSCI EAFE Inde is a free foat-adjusted market capitaization inde of stocks of companies of deveoped market equity indices covering 21 different countries in Europe, Austraia, and the Far East MSCI Word Inde is a free foat-adjusted market capitaization inde composed of companies representative of the market structure of 23 deveoped market countries in North America, Europe and the Asia/Pacific region S&P 500 Inde is a capitaization-weighted inde of 500 stocks, designed to measure performance of the broad US economy representing a major industries A discussion of the reative performance of the Poo compared to its primary benchmark(s) can be found in Resuts of Operations 7

8 Imperia Goba Equity Income Poo Summary of Investment Portfoio (as at December 31, 2014) 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 Vaue Portfoio Breakdown United States 446 United Kingdom 140 Japan 106 Other Equities 64 Austraia 51 Switzerand 41 Germany 39 Cash & Cash Equivaents 32 France 31 Sweden 30 Finand 19 Other Assets, ess Liabiities 01 % of Net Asset Top Positions Vaue Cash & Cash Equivaents 32 HSBC Hodings PLC 25 Wes Fargo & Co 18 Zurich Insurance Services AG 18 JPMorgan Chase & Co 17 Home Depot Inc 15 GaoSmithKine PLC 14 British American Tobacco PLC 14 AstraZeneca PLC 14 Comcast Corp, Cass 'A' 13 Genera Eectric Co 12 TeiaSonera AB 12 Pfizer Inc 11 BASF SE 11 Chevron Corp 11 Raytheon Co 11 Merck & Co Inc 11 BP PLC 11 Procter & Gambe Co (The) 11 Microsoft Corp 10 Inte Corp 10 Siemens AG, Registered 10 Imperia Tobacco Group PLC 10 ICAP PLC 10 Bristo-Myers Squibb Co 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 Imperia Poos CIBC 18 York Street, Suite 1300 Toronto, Ontario M5J 2T Website wwwcibccom/mutuafunds