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Risks & Warnings

Indicative risk factors summary only. The risk factors are not complete and you should read the risk factors contained in any final offering document prior to investing in any products linked to this Index. This is provided for information purposes only and does not purport to summarize or contain all of the provisions that would be set forth in a final offering document.

  • Neither the WisdomTree Siegel Strategic Value Index™ (the “Index”) nor any of the assets comprising the Index are guaranteed to yield specific results. There can be no assurance that the Index will be successful. Past performance is not indicative of future results.
  • The Index is comprised of notional assets. The exposure to the underlying Index that tracks the total return of the underlying assets is purely notional. There is no actual portfolio of assets to which any person is entitled or in which any person has any ownership interest.
  • The Index features a volatility control mechanism that is intended to stabilize the volatility of the Index around 6%. Because this mechanism is based on historical volatility, and subject to a limit on leverage of 150%, the volatility of the Index may not equal its volatility target. As a consequence, and depending on market conditions, the Index may be underexposed to the underlying index during periods of volatile growth and overexposed in periods of steady market decline. The maximum exposure of the Index to the underlying index is 150%. When the index is underexposed, a part of the notional assets of the Index will be invested in 3M US Libor.
  • The leveraged exposure may amplify rising as well as decreasing market movements. Investors may be overexposed to negative market conditions and therefore bear amplified losses.
  • Changes in the value of the underlying Sectors may offset each other and thus act to reduce the level of the Index below what it would have achieved if the poorer performing Sectors were not included.
  • Prior to investing in the Index or purchasing any products linked to (or based on) the Index, investors and consumers should seek independent financial, tax, accounting and legal advice.
  • In calculating the performance of the Index, CIBC deducts a maintenance fee, calculated on a daily basis. This fee will reduce the potential positive change in the Index, and increase the potential negative change in the Index. While the volatility control applied by CIBC 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 as compared to products not subject to volatility controls.
  • Certain extraordinary and disruption events may impact the calculation of the Index.
  • The Index lacks substantial operating history and, as it is based on complex algorithms, may perform in unanticipated ways. Neither this document nor the issuance of any investment product with returns linked to the Index should be deemed as investment advice or as an assurance or guarantee by CIBC or WisdomTree™ or Professor Jeremy Siegel or any of their respective affiliates that an investment linked to the Index will generate a positive return.
  • The Index, was launched on December 19, 2018. Therefore, all data for the Index prior to launch date represents the application of the index methodology by CIBC in order to reconstruct hypothetical historical data. This back-tested, hypothetical, historical data has inherent limitations and is provided for illustrative purposes only. Results during these periods may have been different (perhaps considerably) had the Index actually been in existence. Unlike actual performance records, hypothetical or simulated performances, returns or scenarios may not necessarily reflect certain market factors such as liquidity constraints.
  • The Index performance reflects the price evolution of the Sectors composing the Index, including any dividend payment occurring while a given Sector is part of the index. The Libor USD 3-month rate is then deducted from the Index performance which means that the Index will not generate the same return that would be obtained from investing directly in the stocks composing the Index.
  • The roles of the different teams involved within CIBC, WisdomTree™ and Professor Siegel in the design, maintenance or replication of the Index have been strictly defined. Where CIBC holds a product having the Index as its underlying and other positions exposing it to the Index for its own account, the replication of the Index is made in the same manner by a single team within CIBC, be it for the purpose of hedging the product held by external investors and consumers or for the purpose of the positions held by CIBC acting for its own account. CIBC may take positions in the market of the financial instruments or of other assets involved in the composition of the Index, including as liquidity provider.
  • Publicly available information on the Index and its methodology is limited.