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CIBC CI Global Insights Deposit Notes, Series 2 (CBL309)

Selling period May 15 – July 7, 2006. CIBC CI Global Insights Deposit Notes, Series 2 (CBL309). The Smart Global Diversification Strategy.

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CIBC CI Global Insights Deposit Notes, Series 2 (CBL309)

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  1. Selling period May 15 – July 7, 2006 CIBC CI Global InsightsDeposit Notes,Series 2 (CBL309) The Smart Global Diversification Strategy

  2. The information contained herein is confidential and for advisor use only. It is not to be reproduced or distributed to the public or the press. This presentation is not an offer or a solicitation of an offer or a recommendation to buy or sell any securities or financial instrument, nor shall it be deemed to provide investment, tax or accounting advice. The information contained herein is intended as a summary only and is qualified entirely by, and should be read in conjunction with, the more detailed information appearing in the Information Statement. Details regarding the dynamic allocation strategy, calculation and payment of interest,, the notional portfolio, repayment of principal at maturity and certain risk factors are contained in the Information Statement. Any examples in this presentation are included for illustrative purposes only and are not intended to predict actual results, which may differ substantially from those reflected herein. “CI”, “CI Investments”, Synergy”, “Synergy Funds” and the CI Investments design are registered trademarks of CI Investments Inc. and have been licensed for use by CIBC and its affiliates.

  3. Investment Highlights • Global Diversification (3 CI Global Equity Funds) • Efficient CPPI Structure • Dynamic allocation strategy • Potential for 200% exposure to the Funds • 100% reinvestment of any distributions made by the Funds • Low cost loan facility (1-month BAs + 25 bps) • Low portfolio fees (max. 2.85%) only 0.32% higher than blended 2005 MER of funds • 100% Principal Protection at maturity • Effective Tax Treatment • Tax deferral on interest income • Capital Gains potential if sold prior to maturity

  4. The International Opportunity The chart shows how portfolios with global diversification have outperformed (with less risk) portfolios with Canadian assets only.

  5. The Global CI Portfolio • CI International Value Fund • Altrinsic Global Advisors (Hock) • Undervalued global equities, including emerging markets and emerging industries in any market • Synergy Global Corporate Class • Synergy Asset Management (Picton, Mahoney) • Growth investing in developed markets represented by MSCI World Index CI Value Trust Corporate Class 20% • CI Value Trust Corporate Class • Legg Mason Capital Management (Miller) • Concentrated portfolio of 30 - 50 high quality U.S. equities • The U.S. version of the fund has outperformed the S&P 500 for 15 consecutive calendar years.

  6. The Global CI Portfolio Since Sep 2000, the weighted basket of Funds would have outperformed the MSCI World Index.

  7. The Smart Global Diversification Structure • In rising global equity markets where Fund performance may be positive, additional exposure to the Funds may be gained through leverage for enhanced returns. • In fluctuating global equity markets where Fund performance may be positive or negative, the structure may reduce volatility and dampen losses in an effort to allow participation in any subsequent recovery of the Funds. • In declining global equity markets where Fund performance may be negative, allocating assets to bonds will ensure that 100% of the principal amount will be repaid to investors at maturity. Constant Proportion Portfolio Insurance (CPPI) Structure

  8. How Does “Dynamic Allocation” Work? Constant Proportion Portfolio Insurance (CPPI) Structure • On the Issue Date, $100 per Deposit Note will be used to notionally purchase Units of the Funds. • The Deposit Notes dynamically allocate between Units in the Fund Account and Bonds in a Bond Account in accordance with pre-defined Portfolio Allocation Rules. • The Portfolio Allocation Rules are based on the Distance between the NAV of the Deposit Notes and the Floor Price (i.e., generally, the value of a zero-coupon bond). • A rebalancing (known as an Allocation Event) will occur after a significant change in Distance has taken place. • The dynamic allocation strategy provides 100% initial exposure (with potential for 200% exposure) to the Funds and 100% principal protection at maturity.

  9. “Distance” is the Benchmark for Re-balancing Value Dynamic allocation strategy NAV of Deposit Note Distance Initial Investment Principal Repayment Price of Notional Zero Coupon Bond Leveraging Leveraging Leveraging - De Re Time Maturity

  10. Effect of Bond Prices on the “Floor” • Higher Bond Prices increase the level of the “Floor”. Example 1: Price of 1.00% Coupon Bond with 5.5 year term to maturity – $81.14* Example 2: Price of 0.00% Coupon Bond with 5.5 year term to maturity – $76.80* • An increase in the “Floor” will generally decrease the “Distance”, which determines exposure to the underlying assets. • CPPI structures “eject” once the “Distance” falls to less than a pre-determined percentage of the NAV of the Deposit Notes (thus, a higher Floor decreases the Distance increasing the likelihood of fully allocating to Bonds. * As of May 8, 2006.

  11. What triggers a Re-balancing? When “Target Exposure” differs from “Actual Exposure” by more than 25%, an Allocation Event will occur to bring Actual Exposure back in line with Target Exposure.

  12. Protection Event A “Protection Event” would occur when the “Distance” falls below 1.50% of the “Floor”, at which point the assets would become fully allocated to Bonds until maturity, regardless of the subsequent performance of the Funds.

  13. Example #1: Positive Performance Hypothetical Deposit Note outperforms a direct investment in the Funds. (12.37% p.a. vs 9.71% p.a.) Assuming Bonds’ YTM 4.80% and a constant Loan rate of 4.35% over the term of the Notes.

  14. Example #2: Protection Event A direct investment in Units of the Funds would not have returned its original value after 5.5 years. (-2.71% p.a.) An investment in the Deposit Notes would have paid $101.51 per Deposit Note on the Maturity Date, (0.27% p.a.)

  15. Benefits of theStructure • Responsive to Fund Performance Scenario 1: In global equity market conditions where the Funds perform well, additional exposure to the Funds may be achieved through leverage generating enhanced returns. Scenario 2: In global equity market conditions where Funds may perform negatively, reduced exposure to the Funds may dampen losses in an effort to enable participation in any subsequent recovery. • Protects against Interest Rate Fluctuations Scenario 3: In a rising interest rate environment, continued exposure to the Funds increases growth potential to keep pace with higher interest rates. Scenario 4: In a declining interest rate environment, reinvestment of any distributions will help preserve exposure to the Funds. • Efficient CPPI Structure Trading bands are reset following each Allocation Event to avoid multiple rebalancing in a short period of time. Comparatively low fees and interest charges help prolong exposure to the Funds by making the structure less prone to de-leveraging and allocating to Bonds. • 100% Capital Protection 100% principal protection by CIBC at maturity regardless of the performance of the Funds.

  16. Potential Investors • Equity Investors: • Medium to long-term, risk-sensitive investors who are holding high levels of cash. • Investors with portfolios more heavily skewed to Canadian content. • Investors seeking global diversification with professionally managed mutual funds with safety of principal protection. • Fixed Income Investors: • Investors hesitant to lock in long-term rates at current levels. • Investors missing investment goals due to low interest rates. • Registered Accounts: • 100% eligible for RRSP, RRIF, RESP, DPSP and LIRA accounts • Diversified growth opportunity for investors with long-term investment horizons

  17. Summary of Terms Selling period May 8 to July 7

  18. Advisor Tools • PowerPoint Presentation • Green Sheet • Advisor Summary • Client Summary • Prospecting Letter • Admat • FAQs

  19. THANK YOU For more information, please visit our website: www.ci.com/depositnotes

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