RBA Select Equity Yield CIBC 5% Index Overview Video
Descriptive transcript
[This video uses animation to illustrate spoken content. The CIBC logo appears with the video title, “RBA Select Equity Yield CIBC 5% Index.”]
The RBA Select Equity Yield CIBC 5% Index by CIBC Capital Markets
[The logo of Richard Bernstein Advisors appears.]
was developed together with Richard Bernstein Advisors LLC.
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a prominent investment firm providing innovative, research-driven investment solutions.
[A rectangular box with the text “RBA Select Equity Yield CIBC 5% Index” appears.]
The RBA Select Equity Yield CIBC 5% Index
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is an enhanced dividend investing strategy
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that combines market research, fundamental analysis and quantitative investment strategies
[A magnifying glass appears, along with a row of empty, grey squares. The magnifying glass hovers over each box, and they are filled in grey, to varying degrees. The final box is fully filled, in red.]
in an effort to identify stocks with stable dividend yields.
[The red box enlarges to the center. White lines appear in the box. The box expands into a rectangle. A positive bar graph is populated within the box.]
Dividends not only generate steady income for investors – they may also provide a way to build long-term wealth over time.
[The contents of the box disappear, and is replaced by the text “Conventional Dividend Investing.” The text in the box is replaced with “Dividend Income.” A row of squares with a dollar sign emerge below the “Dividend Income” box.]
While conventional dividend investing focuses solely on dividend income,
[Arrows appear and move up in the background. The text in the rectangle is replaced with “Enhance Returns.” The square boxes with the dollar sign shifts above the rectangle.]
the RBA Select Equity Yield CIBC 5% Index seeks to enhance returns
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by selecting certain large cap U.S. equities
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whose dividends are reliable and sustainable
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through a precise methodology based on leading market research and fundamental analysis of financial factors.
Here’s how it works:
The Largest 600
[Text reads, “The Largest 600.” Twelve burgundy rectangles, each composed of 50 small squares appear.]
Every quarter, the index starts by selecting the 600 largest U.S based companies by market cap.
Primary Filter
[Text reads, “Primary Filter.” The colours in all the rectangles are washed out. A line appears below the set of rectangles, and moves up, through the rectangles.]
The Index then filters to analyze reasonability of a dividend payout, relative to the company’s operating performance.
Secondary Filter
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Next, the Index runs a secondary filter to analyze the reliability of a dividend payout, relative to a company’s financial performance.
Test
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And finally, the Index filters to analyze for the consistency of a company’s dividend payment history, over a determined period of time.
Selection
[The line moves through the rectangles. Four rectangles remain burgundy. Text reads, “Selection.” The four remaining rectangles transform into a bar graph. Each bar is at the same height.]
When filtering and testing are complete, the index selects the top 100 highest dividend-yielding securities for inclusion on a quarterly basis,
[The bars light up, from left to right.]
and allocates assets on an equal weighted basis.
Rebalance
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Each month, the portfolio is rebalanced to equal weights to avoid concentration risk.
[A positive line chart with a control switch appears. The switch shifts from right to left, with the label “5%.”]
Index volatility is managed at 5% using custom volatility control strategies,
[A rectangle appears, which is divided into two sections: “Cash” and “Assets.” The divider moves horizontally to change the size of each section.]
which shifts a percentage of assets into and out of cash as required. Leverage is also capped at 150%.
The Outcome
[Text reads, “The Outcome?” A series of squares appear on the center. A square with a checkmark appears on the left, and a square with a clock appears on the right.]
The outcome? A targeted set of large cap U.S. equities whose dividends are reliable and sustainable
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all focused on enhancing total returns.
The RBA Select Equity Yield CIBC 5% Index
Dividend investing reimagined.
[The CIBC logo appears. Text reads, “CIBC Capital Markets.”]
Disclaimer
The RBA Select Equity Yield CIBC 5% 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 Solactive AG (“Solactive”) 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, Solactive, 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.
SOLACTIVE is a trademark and service mark of Solactive. Solactive and its affiliates are not affiliated with CIBC. Solactive’s association with CIBC is to act as the administrator and calculation agent of the Index, which is the property of CIBC. Solactive 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.
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