CIBC and CIBC Asset Management Inc. today announced the successful completion of the issue of $102 million of CIBC FULPAY DARTS Renaissance Funds-linked Deposit Notes, Series 1.

The principal-protected notes aim to provide 100% principal protection and investment returns that are linked to the performance of a notional portfolio of assets allocated dynamically over the term of the notes between an equity account and a bond account.

The equity account will initially be allocated 70% to units of Renaissance Canadian Dividend Income Fund and Renaissance Canadian Income Trust Fund II, equally- weighted between the funds, and 30% to a basket of equities selected by Gaelan Morphet of TAL Global Asset Management Inc., the portfolio sub-advisor of the funds.

The equity account may be partially funded through a revolving loan. Pre-defined portfolio allocation rules, will govern the allocation from time to time of the notional portfolio between the bond account and the equity account (and the amount of the loan), as well as between the funds and the equity basket.

To hedge its obligation to pay the reference investment returns, CIBC will purchase and sell units of the funds throughout the term of the notes, in accordance with pre-defined portfolio allocation rules, which are managed by CIBC World Markets Inc.

The portfolio allocation strategy is designed to reduce an investor’s exposure to the equity account in declining markets and increase it in rising markets while protecting the investor’s principal.

CIBC, and CIBC World Markets Inc., CIBC Asset Management Inc., and TAL Global Asset Management Inc, will receive fees and/or other benefits in connection with the notes, and the hedging of any obligations under the notes.