CIBC and CIBC Asset Management are launching CIBC Asset Management FULPAY DARTS 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 dynamically allocated over between an equity account and a bond account.

The equity account will initially be allocated 70% to units of two mutual funds, CIBC Monthly Income Fund and Talvest Millennium High Income Fund and 30% to a basket of equities selected by Stephen Gerring of TAL Global Asset Management Inc. The equity account may also be leveraged through a revolving loan. Investors will receive monthly coupons equal to 100% of the monthly distributions on the funds and the equity shares and, at maturity, the principal amount plus an additional variable amount equal to any increase in the value of the portfolio.

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 shares.

To hedge its obligation to pay the reference investment returns, CIBC will purchase and sell shares and units of the funds during the term of the notes, in accordance with these pre-defined portfolio allocation rules.

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. The managers of the funds believe that the risks to the funds associated with CIBC’s implementation of the portfolio allocation strategy are low.

CIBC is the issuer of the notes. CIBC World Markets Inc., is the selling agent and the calculation agent. CIBC Asset Management Inc. is the manager, trustee and portfolio advisor of Talvest Millennium High Income Fund and the portfolio advisor of CIBC Monthly Income Fund.

CIBC, CIBC World Markets, CIBC Asset Management and TAL Global Asset Management Inc. will receive fees and/or other benefits in connection with the notes. Morrison Williams Investment Management Ltd. is portfolio sub-advisor to Talvest Millennium High Income Fund and will also receive fees and/or other benefits in connection with the notes.