CIBC launches Canada's only 5-year protected Index Funds

Funds offer growth potential, 100 per cent safety, and peace of mind

TORONTO, Nov. 25 /CNW/ - CIBC today announced a new family of five index mutual funds that protect 100 per cent of investors' initial investment, if held for five years, and offer the full growth potential of Canadian and international markets. The funds will be available on Dec. 4.

Unlike segregated funds that require a minimum holding period of 10 years, the CIBC Five-Year Protected Mutual Funds offer investors a guarantee after only five years. Investors will also pay lower management fees than on many 10-year segregated funds.

"Many investors are looking for ways to protect their investments while maximizing growth," said Ted Cadsby, president and chief executive officer of CIBC Securities Inc. "The CIBC Five-Year Protected Mutual Funds represent a whole new direction in investing -- they give investors the best of all possible worlds."

The funds are fully redeemable at any time for market value. At the end of the five-year term, investors will receive the fund's market value or the original purchase amount -- whichever is higher.

"Over the five-year term, investors can't lose," said Cadsby. "This approach ensures stability in their investments. For that reason, it is ideal for first-time investors, conservative investors or those nearing retirement."

Other features of CIBC Five-Year Protected Funds include ease of transfer to a beneficiary or estate upon death; the ability of index funds to generally outperform actively managed funds; competitive management expense ratios; portfolio diversification with five funds; and no sales charges or commission to buy or sell through CIBC. All are 100 per cent RRSP eligible, except for the Five-Year U.S. Index Fund, which has 20 per cent eligibility.

With a low entry fee of $500, investors can build a balanced mix of index funds to fit their investment objectives.

Protected funds available include:
- Five-Year Canadian Bond Index Fund
- Five-Year Balanced Index Fund
- Five-Year Canadian Index Fund
- Five-Year U.S. Index Fund
- Five-Year International Index Fund.

CIBC Wealth Management offers investors a complete suite of investment products, services, programs and advice designed to meet individual needs. CIBC offers Canada's most comprehensive selection of index funds reinforced by a unique portfolio rebalancing service.

Note: Ted Cadsby is available for interviews at (416) 351-4293

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For further information:
Pat Phillips in Toronto at (416) 980-3038;
Peter McCreath in Halifax at (902) 428-4778;
Sylvie Godin in Montreal at (514) 876-3473;
Kevin Lightfoot in Winnipeg at (204) 944-5374;
Tyra Henschel in Calgary at (403) 221-2423;
or David Hoff in Vancouver at (604) 665-4990;
Hugh Mansfield, Mansfield Communications Inc., (416) 947-0635

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