CIBC U.S. Dollar Managed Income Portfolio
Investment Objective:
The Portfolio will attempt to create a diversified portfolio by allocating its investments across a balanced blend of asset classes. Within the asset classes, the Portfolio will invest primarily in Mutual Funds including savings, income and growth funds.
The Portfolio will focus primarily on generating a high level of regular income with a secondary focus on modest capital growth.
The Portfolio will attempt to reduce its currency exposure to non-U.S. dollar currencies by implementing a currency hedging strategy that is aimed at protecting the Portfolio from non-U.S. dollar currency fluctuations in respect of units it owns in Underlying Funds.
Investment Strategies:
The principal strategy is to use a strategic asset allocation that will:
- invest up to 100% of the Portfolio's assets in units of the Underlying Funds
- allocate the Portfolio's assets among the Underlying Funds according to the strategic weightings for the Portfolio, which may change at our discretion, but are generally expected to be:
- savings 5%
- income 75%
- growth 20%
- monitor and rebalance the Portfolio's assets to realign the weightings within its strategic asset mix
- monitor and review the Underlying Funds on a periodic basis.
Aside from cash and cash equivalents, the Portfolio holds units of its Underlying Funds, which may be managed by CIBC or its affiliates.
The Portfolio will allocate its investments across a balanced blend of asset classes. The Portfolio will also implement a currency hedging strategy that will attempt to protect the Portfolio from currency exposure to non-U.S. dollar currencies in respect of units it owns in Underlying Funds. The extent to which the composition of the investment assets of the Underlying Funds held by each Portfolio exposes the Portfolio to the risk of movement in the value of non-U.S. currencies in relation to the U.S. dollar will be monitored on an ongoing basis. The Portfolio will then enter into non-U.S. currency hedging transactions to hedge the exposure of the net asset value of units of the Underlying Funds held by the Portfolio to fluctuations in the value of non-U.S. currencies. The non-U.S. currency hedging transactions will involve using derivatives such as options, futures, forward contracts, swaps and other similar instruments.
The Portfolio May Be Suitable for:
- investors looking for portfolio diversification within a single mutual fund
- those primarily seeking a high level of regular income with a secondary focus on modest capital growth
- investors seeking to invest in and maintain exposure to U.S. dollars
- those investing for the short to medium term
What Are the Risks of Investing in the Fund?
The Portfolio is based on a strategic asset allocation. In implementing this strategy, the Portfolio will invest in a number of Underlying Funds in order to obtain the desired asset allocation. The performance of the Portfolio will be related to the performance of the Underlying Funds held by the Portfolio.
The primary risks associated with the Portfolio will reflect the risks of the Underlying Funds in which the Portfolio invests. The amount of risk the Portfolio takes on from each of the Underlying Funds is directly proportional to the amount invested in each of the Underlying Funds.
The Portfolio may be exposed to capital depreciation risk, concentration risk, currency risk, derivative risk, emerging markets risk, equity risk, foreign market risk, general market risk, income trusts and limited partnerships risk, index risk, legal and regulatory risk, liquidity risk, passive management risk, risk of specializing, significant holdings risk, smaller companies risk, and sovereign debt risk.
In addition, the Portfolio is exposed to hedging risk. Further, the Portfolio may not be able to hedge its exposure to non-U.S. currencies fully, and therefore it could be subject to some non-U.S. dollar currency exposure.
The Portfolio will generally treat gains or losses on non-U.S. currency hedging transactions as capital gains or losses in accordance with the advice of counsel and the current administration position of the CRA, but if such transactions were treated on income rather than capital account, after tax returns to unitholders could be reduced and the Portfolio could be subject to non-refundable income tax.
The Portfolio's ability to meet its investment objective will be dependent on the ability of the Underlying Funds to achieve their respective investment objectives as well as effective implementation of the currency hedging strategy.
Refer to the Simplified Prospectus for more details.
* Volatility (1-6): The lower the volatility ranking, the lower the risk of the portfolio. Portfolios with a volatility ranking of 6 are the most risky.
** Other dealers may have different minimum dollar requirements.
+ This portfolio is not eligible for registered accounts offered by CIBC Securities Inc.. Other registered dealers and brokers (such as CIBC Investor Services Inc.) may allow you to hold this Portfolio in their registered accounts.
View CIBC Mutual Funds Financial Reports and Prospectuses
Disclaimers:
Important information about CIBC Securities Inc. and mutual funds
CIBC Mutual Funds and CIBC Family of Managed Portfolios are offered by CIBC Securities Inc., a wholly-owned subsidiary of CIBC. CIBC Family of Managed Portfolios consists of CIBC Managed Portfolios and CIBC U.S. Dollar Managed Portfolios, which are mutual funds that primarily invest in other CIBC Mutual Funds. CIBC Managed Portfolio Services is a service that helps you select an appropriate professionally built CIBC Managed Portfolio or CIBC U.S. Dollar Managed Portfolio. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. To obtain a copy, call CIBC Securities Inc. at 1 800 465-3863 or ask your mutual fund representative at any branch where CIBC Mutual Funds are sold. Mutual funds are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer nor are they guaranteed by CIBC. There can be no assurance that Money Market Funds will be able to maintain their net asset value per unit at a constant amount or that the full amount of your investment will be returned to you. The values of many mutual funds, such as Income and Growth Funds, can change frequently. Past performance may not be repeated.
Plan** (Min/Mth):
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