Balanced Asset 10 Index™ Overview Video
Descriptive transcript
[This video uses animation to illustrate spoken content. The CIBC logo appears with the video title, “Balanced Asset 10 Index™”]
Introducing the Balanced Asset 10 Index™ from CIBC Capital Markets,
[A building appears. Then, several bricks appear to form a square.]
a leading North American financial institution at the forefront of index construction.
[The square is divided into two sections. Two control switches appear, moving up and down in levels.]
By leveraging a classic 60/40 approach to portfolio allocation in combination with rebalancing and volatility control features,
[The square expands into a rectangle. Text reads, “60% Blackrock iShares Core S&P 500 ETF (IVV)” on one section, and “40% Blackrock iShares 20+ Year Treasury Bond ETF (TLT)” on the other section.]
the Balanced Asset 10 Index™ seeks to provide excess returns across market conditions through a tactical combination of equity and fixed income ETFs developed by Blackrock.
[Text reads, “Strategic, Balanced Exposure.”]
Strategic, balanced exposure
[The divided rectangle reappears. A positive bar chart appears on the left section. A gauge labelled “Risk” appears on the right section.]
Through the 60% equity ETF exposure, the Index targets consistent returns over time and across market conditions, while the 40% fixed income ETF allocation seeks to moderate the overall risk of the portfolio. Each month, the Index is rebalanced back to 60/40 weights.
[Text reads, “Innovative Construction Features.”]
Innovative construction features
[A positive line chart with a control switch appears. The switch shifts from right to left, with the label “10%”.]
Index volatility is managed at 10% using custom volatility control strategies,
[The line chart is replaced by the divided rectangle. A new section appears on the left, with the text, “Cash.”]
which shift a percentage of assets into cash as required, capping leverage at 150%.
The end result?
[Arrows appear moving up, and then down.]
Whether the market is high or low, investors get transparent, balanced, diversified exposure
[Dollar signs enclosed in circles appear. A line appears to connect these circles from left to right, depicting a positive line chart.]
without losing the opportunity to take advantage of market movements with daily liquidity.
The Balanced Asset 10 Index™.
A distinct mix of assets and construction features designed to generate excess returns while effectively managing risk.
[The CIBC logo appears. Text reads, “CIBC Capital Markets”]
Disclaimer
The Balanced Asset 10 Index™ (the “Index”) is the exclusive property of Canadian Imperial Bank of Commerce (Canadian Imperial Bank of Commerce, together with its affiliates, “CIBC”). CIBC has engaged Bloomberg Finance L.P. (“Bloomberg”) to maintain and to make certain calculations related to the Index. “Canadian Imperial Bank of Commerce”, “CIBC” and “Index” (collectively, the “CIBC Marks”) are trademarks or service marks of CIBC. CIBC has developed the index without considering the needs of any person. CIBC makes no representation or warranty, express or implied, regarding the Index or its development and has no responsibilities, obligations or liabilities with respect to the inception, adjustment, maintenance, operation or calculation.
None of CIBC, Bloomberg, or any third-party licensor (collectively, the “Index Parties”) to CIBC is acting, or has been authorized to act, as an agent of any Index Party or has in any way sponsored, promoted, solicited, negotiated, endorsed, offered, sold, issued, supported, structured or priced any Index-linked products (a “Product”) or provided investment advice to any person. No Index Party is a fiduciary or agent of any purchaser, seller or holder of any Product, or has made any representation or warranty, express or implied, regarding the advisability of purchasing, selling or holding any Product or the ability of the Index to track corresponding or relative market performance. Purchasers of any Product neither acquire any interest in the Index nor enter into any relationship of any kind whatsoever with any of the Index Parties. No Index Party guarantees the timeliness, accurateness, or completeness of the Index or any data or information relating thereto and shall have no liability in connection with the Index or any data or information relating thereto. No Index Party shall have any liability with respect to any Product, nor any liability for any loss relating to any Product, whether arising directly or indirectly from the use of the Index, its methodology, or otherwise.
BLOOMBERG is a trademark and service mark of Bloomberg. Bloomberg and its affiliates are not affiliated with CIBC. Bloomberg’s association with CIBC is to act as the administrator and calculation agent of the Index, which is the property of CIBC. Bloomberg does not guarantee the timeliness, accurateness, or completeness of the Index or any data or information relating thereto and shall have no liability in connection with the Index or any data or information relating thereto.
In calculating the level of the Index, the index methodology deducts a maintenance fee of 0.85% per annum, calculated daily. Furthermore, while the volatility control applied by CIBC as part of the index methodology may result in less fluctuation in rates of return as compared to indices without volatility controls, it may also reduce the overall rate of return for Products referencing the Index as compared to other indices not subject to volatility controls.
CIBC Capital Markets is a trademark brand name under which Canadian Imperial Bank of Commerce (“CIBC”), its subsidiaries and affiliates (including, without limitation, CIBC World Markets Inc. and CIBC World Markets Corp.) provide products and services to our customers around the world. Services offered by the Canadian Imperial Bank of Commerce include corporate lending services, foreign exchange, money market instruments, structured notes, interest rate products and OTC derivatives. Canadian Imperial Bank of Commerce is a provisionally-registered Swap Dealer with the Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA). CIBC’s Disclosures pursuant to the External Business Conduct rules are located at the following link: CIBC Dodd-Frank Disclosures. CIBC’s Foreign Exchange Disclosure Statement relating to guidelines contained in the FX Global Code can be found at CIBC Foreign Exchange Disclosure Statement. Other products and services, such as exchange-traded equity and equity options, fixed income securities and futures execution of Canadian securities, are offered through directly or indirectly held subsidiaries of CIBC as indicated below. In the U.S., CIBC Capital Markets also provides investment banking services under the trademark brand name CIBC Cleary Gull.
Securities and other products offered or sold by CIBC Capital Markets are subject to investment risks, including possible loss of the principal invested. Each subsidiary or affiliate of CIBC is solely responsible for its own contractual obligations and commitments. Unless stated otherwise in writing CIBC Capital Markets products and services are not insured by the Canada Deposit Insurance Corporation, the Federal Deposit Insurance Corporation, or other similar deposit insurance and are not endorsed or guaranteed by any bank.
CIBC World Markets Inc. is a member of the Canadian Investor Protection Fund and the Canadian Investment Regulatory Organization. In the United States, CIBC World Markets Corp. is a member of the Financial Industry Regulatory Authority and the Securities Investor Protection Fund. CIBC Bank USA is regulated by the Illinois Department of Financial and Professional Regulation and a member of the Federal Deposit Insurance Corporation. Canadian Imperial Bank of Commerce, London Branch, is authorised by the Prudential Regulation Authority and subject to regulation by the Financial Conduct Authority and limited regulation by the Prudential Regulation Authority. CIBC Capital Markets (Europe) S.A. (RCS Luxembourg: B236326) is authorised by the European Central Bank (the “ECB”) and supervised by the Luxembourg Financial Supervisory Authority (Commission de Surveillance du Secteur Financier) under the oversight of the ECB. Canadian Imperial Bank of Commerce, Sydney Branch (ABN: 33 608 235 847), is an authorized foreign bank branch regulated by the Australian Prudential Regulation Authority (APRA). CIBC Australia Ltd (AFSL No: 240603) is regulated by the Australian Securities and Investment Commission (“ASIC”). CIBC World Markets (Japan) Inc. is a member of the Japanese Securities Dealer Association. Canadian Imperial Bank of Commerce, Hong Kong Branch, is a registered institution under the Securities and Futures Ordinance, Cap 571, and a limited liability foreign company registered with the Hong Kong Companies Registry. Canadian Imperial Bank of Commerce, Singapore Branch, is a wholesale bank licensed and regulated by the Monetary Authority of Singapore.
The CIBC logo and “CIBC Capital Markets” are trademarks of CIBC, used under license. All other applicable trademarks are owned by their respective trademark owners.
