MLGIC Products: Annual Income Video
Descriptive transcript
[This video uses animation to convey spoken content.
A combination lock with a dollar sign in the middle drops into the screen from the top. Then a positive bar graph appears, where the last point is considerably taller than the rest.]
Combining the security of traditional GICs with the potential to earn a higher market linked return,
[The graph disappears, and the words “CIBC Market Linked GICs” appear in the middle of the screen. Three circles fall in from the top of the screen: a grey one with the word “Income” in it; a burgundy one with the words “Income and Growth”; and a red one with the word “Growth.” The circles land in a pyramid. The pyramid shifts to the left and the three circles begin rotating around each other.]
CIBC Market Linked GICs are available in three distinct strategies featuring
[The following text appears in bullet points.]
different payout structures, designed to help meet the short and long term goals of specific investor profiles and complement traditional investment plans.
[The grey circle containing “Income” expands and moves to the middle of the screen, as the other contents of the screen disappear. The circle is divided into four quadrants. The words “Guaranteed Market Return GICs” appears above the circle, and the words “Income With Annual Payments” appears below.]
Our CIBC Market Linked GICs focused on Income may be suitable for investors who
[The following text appear in each quadrant, accompanied by icons. The following icons appear respective to each text: an umbrella, a dollar sign surrounded by rotating arrows; a checkmark; and cash coins.]
value principal protection, require annual cash flow from their investments and a guaranteed minimum return, and who are seeking the potential for enhanced yield relative to their fixed-rate GICs.
[The circle is replaced with the letter “I.” The following text appear on screen.]
By linking returns to the price performance of an equally weighted global portfolio of common shares,
[The text disappears, and a horizontal line appears which expands to show two vertical bars of the same height. The bar on the left is labelled “Traditional GIC” and the bar on the right is labelled “Income-Focused Market Linked GIC.” The bar on the right continues to grow upwards past the bar on the left, and the words “Offer the potential to outperform traditional GICs” appears above the bar on the right.]
Income-focused Market Linked GICs offer investors the potential to outperform traditional GICs.
[The screen is populated with chart lines. Five cash bills appear in a horizontal row in the middle of the chart to form a straight line, representing a baseline amount.]
In this structure, a minimum guaranteed variable coupon amount is payable annually, no matter how the shares perform.
[Bars in various heights appear from the bottom of the chart, below each dollar bill. Some bars extend beyond the original height of the dollar bill, representing an enhanced coupon amount. A new line appears at the top, cutting off any bar that went beyond it.]
If the shares outperform the minimum guaranteed return, investors have the opportunity to earn an enhanced coupon amount, up to a stated maximum amount.
[One of the dollar bills is singled out, while the rest of the chart disappears. A red bar emerges below the dollar bill, supporting it.]
At maturity, investors are also guaranteed their original principal amount, regardless of the performance of the shares during the term.
[The dollar bill expands, and the following text appears.]
Calculating the annual interest payments is simple and straightforward.
[The text disappears and the dollar bill enlarges. The dollar bill is divided into five bars, and transforms into a bar chart.]
Each year during the term of the GICs, a coupon amount is calculated based on the percentage increase or decrease in the price of each share,
[A solid line appears below the bars, as the bars disappear. A new comparative bar chart appears, with two thin bars per section.]
measured from its price on the issue date to its price on the annual valuation date.
[A new line appears at the top of the chart, denoting the specified maximum rate. Performance bars which are positive, extend to the height of the maximum rate.]
If the performance of a share is positive, the share return is counted as the specified maximum rate.
[A new line appears in the middle of the graph, denoting the specified minimum rate. Performance bars which are negative, extend to the height of the minimum rate.]
If the performance of share is zero or negative, the share return is counted as the actual performance, subject to the specified minimum rate.
[A square block appears, as the contents of the chart disappears into it.]
The average of all the share returns is then calculated,
[The square block expands and transforms into a singular bar chart, denoted as “Average Share Returns.” A line appears at the top and bottom of the chart, denoted as “Maximum Coupon Rate” and “Minimum Coupon Rate,” respectively.]
with the coupon rate being equal to the greater of the average of the share returns and the specified minimum coupon rate.
Let’s go through an example.
[Everything slides off screen, and a new positive line chart appears. Two lines for maximum coupon rate and minimum coupon rate appear. The area between the line and minimum coupon rate is shaded in grey. The screen zooms in to show this.]
If the average of the Share Returns is greater than the minimum coupon rate in a given year, investors will receive an annual interest payment that exceeds the guaranteed coupon amount.
[The line becomes negative, and goes below the minimum coupon rate. The area between the two is now shaded in red.]
If, on the other hand, the average of the Share Returns is less than or equal to the minimum coupon rate in a given year, investors will receive ONLY the guaranteed coupon amount.
[The screen zooms out, and the graphs fall off the screen.]
No matter how the shares perform throughout the term of the GICs, investors’ principal amount is 100% protected and payable at maturity.
[The following text appears one after another, each accompanied by icons. The following icons appears respective to each text: an umbrella; dollar sign with rotating arrows; cash coins; and cash bills.
Disclaimer text: CDIC insured up to applicable limits.]
With guaranteed capital protection, annual coupon amounts, the potential for enhanced yield and minimum investments starting at just $500,
[Everything slides off screen, and a rotating ring appears.]
gaining access to the growth potential of the global equities market has never been easier — or more secure.
[The ring disappears. The following text appears on screen.]
Just because you require 100% principal protection, doesn’t mean you have to sacrifice return potential.
[The screen swipes right. The following text appears on screen.]
CIBC Market Linked GICs
Increase your return potential. Not your risk.
