CIBC U.S. Dollar Managed Balanced 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 on a balance of income and long-term 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:
    • income 50%
    • growth 50%
  • 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.

Rate Information


The Portfolio may be suitable for:

  • investors looking for portfolio diversification within a single mutual fund
  • those who want a balance between income and long-term capital growth
  • investors seeking to invest in and maintain exposure to U.S. dollars
  • those investing for the medium to long 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 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, class risk, commodity risk, concentration risk, currency risk, derivative risk, emerging markets risk, equity risk, fixed income risk, foreign market risk, general market risk, trusts and partnerships risk, index risk, legal and regulatory risk, liquidity risk, risk of specializing, securities lending, repurchase and reverse repurchase agreements risk, large investor 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.
 

Distribution policy:

The Portfolio intends to distribute net income quarterly and net realized capital gains annually in December, for Class A units. Distributions are automatically reinvested in additional Class A units of the Portfolio unless you request otherwise.

For Class T4, Class T6, and Class T8 units, the Portfolio expects to distribute net income monthly. At the end of each month, the Portfolio will distribute an amount equal to approximately one-twelfth of 4% on Class T4 units, approximately one-twelfth of 6% on Class T6 units, and approximately one-twelfth of 8% on Class T8 units of the net asset value per unit on the last day of the previous calendar year (or, if no units were outstanding at the end of the previous calendar year, the date on which the units are first available for purchase in the current calendar year). The monthly distribution will generally consist of net income and/or return of capital. The Portfolio may make an additional distribution in December, but only to the extent required to ensure that the Portfolio will not pay income tax. The annual and monthly distribution rates may be adjusted from time to time at our discretion.

If the monthly amount distributed exceeds the Portfolio's net income and net realised capital gains, such excess will constitute a return of capital. For Class T4, Class T6, and Class T8 units, it is likely that a greater proportion of the amount distributed will constitute a return of capital, when compared to Class A units. Generally, the Portfolio expects that the total amount of any returns of capital made by the Portfolio in any year should not exceed the amount of the net unrealized appreciation in the Portfolio's assets for the year. A distribution to you by the Portfolio that is a return of capital will not generally be included in your income. Such a distribution, however, will generally reduce the adjusted cost base of your units of the Portfolio and may, therefore, result in you realizing a taxable capital gain on a future disposition of the units. Further, to the extent that the adjusted cost base of your units of the Portfolio would otherwise be a negative amount as a result of you receiving a distribution on units that is a return of capital, the negative amount will be deemed to be a capital gain realized by you from a disposition of the units and your adjusted cost base of the units would be increased by the amount of such deemed gain. See Income Tax Considerations for Investors. Depending on market conditions, a significant portion of the Portfolio's distribution may be a return of capital for a certain period of time. The amount of the distributions is not guaranteed and may change from time to time without notice to unitholders.


* Volatility (low to high): The lower the volatility ranking, the lower the risk of the fund. Funds with a volatility ranking of high are the most risky.

** Other dealers may have different minimum dollar requirements.

† The Portfolio is not eligible for registered accounts offered by the Principal Distributor. Other dealers (such as CIBC Investor Services Inc.) may allow you to hold the Portfolio in their registered accounts.

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