Transcript: Structured notes — Market Linked GICs

[Title Name: Roni Taza - Director, Wealth Solutions Group.]

[Music plays.]

[CIBC logo. Market linked GICs.]

[Roni sits and speaks to the camera.]

>> Roni Taza: If you're looking to benefit from market exposure in your investment portfolio, but fear the potential risks associated with a direct investment in stocks or mutual funds, then Market Linked GICs may be a good option for you.

[“Market Linked GICs (MLGICs).” The following points appear as each is talked about: “Guarantee 100% repayment of your principal at maturity” and “There are a number of differences from traditional GICs.”]

[“Market Linked GICs (MLGICs).” An icon of a plant sprouting is shown through a magnifying glass. “Track an underlying asset” then lists “Equities,” “Equity indices (like the S&P 500®1)” and “Interest rates.”]

[The magnifying glass then changes to an icon of a gauge. Beside this icon is the title “Increased return potential.”]

Market Linked GICs are like traditional GICs, in that they guarantee 100% repayment of your principal at maturity. There are, however, a number of differences. Market Linked GICs track an underlying asset like equities, equity indices, like the S&P 500, or interest rates, and offer increased return potential relative to a traditional GIC.

[A bar graph with an arrow moving up and down. Beside it is the title “May not earn any return, depending on the performance of the underlying asset.”]

[The icon then changes to an arrow pointing up, then it changes to an arrow pointing down, then changes to a horizontal line.]

That said, they are also different from traditional GICs in that they may not earn any return, since the return is based on the performance of the underlying asset. That underlying asset may go up or down, or end in a neutral position over the term of the investment.

[An icon of a unfolding document. “Typically non-redeemable prior to maturity.”]

[“MLGICs.” Then “Are CDIC eligible (up to applicable limits)” and “Offer a variety of payout structures.”]

Market Linked GICs are also typically non-redeemable prior to maturity. Like traditional GICs, Market Linked GICs are CDIC eligible up to the applicable limits. Market Linked GICs offer a variety of payout structures that may help you to meet your short and long term goals.

[“Ask yourself whether you are looking for.” Graphic of a table holding a lamp, closed laptop and wall calendar. The laptop opens and shows arrows and coins moving in a circular pattern. “Cash flow from your investments.” Then the calendar is highlighted for the year 2025. “Higher return potential at the end of the term.” The calendar then flips to 2026.]

When trying to determine which type of Market Linked GIC may be right for you, you need to ask yourself whether you're looking for cash flow from your investment during the term, or don't require cash flow, and would rather invest in a growth product that offers a higher return potential at the end of the term.

[“MLGIC Min/Max Product.” Then “Minimum and maximum interest rate payable at the end of the term,” “Safety of a guaranteed return on your investment,” “Potential for higher returns, if the underlying asset performs above the minimum rate” and “Maximum return specified.”]

One example of a popular Market Linked GIC is the Minimum Maximum Product. This product is structured with both a minimum and a maximum interest rate payable at the end of the term. So these products offer the safety of a guaranteed return on your investment, while also offering the potential for higher returns. If the underlying asset performs above the minimum rate, there is a maximum return specified for this product. So your potential interest payable at maturity is capped at a predetermined level.

If the performance of the underlying asset does better than the maximum rate, your return is limited to that specified rate. Let's walk through an example of how this particular product works.

[“5 Year LMGIC Min/Max Example.” A line graph is shown. Along the horizontal X axis are the years 2024, 2025, 2026, 2027, 2028 and 2029. Along the veritical Y axis are the following amounts, starting at $3,500 and increasing by $500, ending at $8,000. The $5,000 amount is highlighted, with a line moving straight across the graph.]

[Icon of a gauge is shown and is labelled “Minimum return of 18%.” Another gauge is shown, labelled “Maximum return of 40%.”]

[These icons and labels disappear and are replaced with three different line graphs. The first moves down with peaks that do not go above the $5,000 mark and ends at the $4,500 mark which is labelled minus 10%. A second line graph goes above the $5,000 point and goes below, but ultimately ends at $6,000, which is labelled plus 30%. The final line graph goes up and down sharply to end at the $7,500 point and is labelled plus 50%.]

[A breakdown of each graph. The final graph breaks down into “Principal = $5,000; Interest 40% = $2,000 (maximum return for the product); Total paid at maturity (principal plus interest) = $7,000.” The second graph breaks down into “Principal = $5,000; Interest 30% = $1,500 (Based on the return value); Total paid at maturity (principal plus interest) = $6,500.” The first graph breaks down into “Principal = $5,000; Interest 18% = $900 (Minimum return for the product); Total paid at maturity (principal plus interest) = $5,900.”]

As a hypothetical example, you purchase a five-year Market Linked GIC linked to the performance of the S&P 500. This product offers a return at maturity linked to the performance of the index, subject to the minimum of 18% and a maximum return of 40%. This means that no matter what happens to the performance of the index, during that term, you're guaranteed to be paid at least 18% and no more than 40% at maturity. There are several options and lots of great information available.

[To learn more, talk to your advisor]

[CIBC Market Linked GICs. Increase your return potential, not 

your risk.]

CIBC Market Linked GICs. Increase your return potential, not your risk.

[CIBC logo. The CIBC logo and CIBC Investor’s Edge are trademarks of CIBC. CIBC Investor’s Edge is a division of CIBC Investor Services Inc. 1 S&P 500^® is a registered trademark of Standard & Poor’s Financial Services LLC and has been licensed for use by CIBC.]