Now Is The Time To Buy Stocks

Now Is The Time To Buy Stocks - But Be Selective Fund Update November 30, 2009 David Graham, MBA, CFA Vice President Canadian Equity CIBC Global Asset Management Inc. Craig Jerusalim Research Analyst Canadian Equity

David Graham, CFA Vice-President, Portfolio Manager – Canadian Equities CIBC GLOBAL ASSET MANAGEMENT CIBC Global Asset Management Inc. (CGAM) ranks among Canada’s leading investment managers with over $60 B in AUM’s, and has one of the broadest investment management platforms in Canada. David Graham joined CIBC Global Asset Management in July of 2002. He is responsible for strategy and research and brings extensive experience to the Canadian equities team. David is the manager of several CIBC and Renaissance Funds with assets totalling over $8 billion. Education/Accreditation • MBA – York University (Toronto) • BA – University of Western Ontario (London) • CFA Charterholder Background/Experience David brings to CGAM over 35 years experience with various firms including: 2000 -2002 - Senior Equity Analyst; Merrill Lynch Investment Managers 1998 -1999 – Analyst; First Marathon Securities Ltd. 1996 -1998 – Executive Vice-President, Institutional Sales; Marleau, Lemire Securities Inc. 1991 -1996 – Institutional Salesperson; Richard Greenshields Ltd. 1986 -1991 – Vice-President, Institutional Equities; Mc. N Mantha Inc. CIBC Global Asset Management Inc. November 2009 1

Portfolio Manager Changes Modest Implications For Our Clients Similarities: - Same Value Model - Bottom Up Oriented - Similar Value Style - Sector Agnostic - Dislike Balance Sheet Risk - Incremental Buyers/Sellers - Prefer Mgt Track Record CIBC Global Asset Management Inc. Differences: - Look For Value + A Catalyst - Use Other Valuation Measures (EV/EBITDA, Price/Cash Flow) As Well As P/E - Add Top Down Sector Selection - Not As Deep Value - Buy New Issues If Value Evident - Use Relative Strength Tools - Will Trade Around Core Positions Source: CIBC Global Asset Management Inc. November 2009 2

Portfolio Manager Changes Modest Implications For Our Clients Recent Purchases Recent Sales BCE – solid management, lean & mean, 6% yield IMO – trimmed 20 -30 bps – good value but refining side weak BTE. UN – solid heavy oil trust, 5. 6% yield, benefits from narrow oil spreads Crescent Point – solid management, excellent drill inventory, 7% yield BMO, NA, RY, TD – bought were Funds less than 5% overweight – like banks in this environment CIBC Global Asset Management Inc. CLC. UN – trimmed 20 -30 bps – good value but limited upside GIB. A – trimmed 20 bps – at our target, took profits T – owned small position (about 50 bps), switched to BCE November 2009 3

STRONG TEAM STRUCTURE Preferreds Jeffery Waldman Adam Ditkofsky Asset Allocation John Braive Luc de la Durantaye Core & Dividend Funds Domenic Monteferrante Fixed Income Jeffery Waldman Value & Income Funds David Graham Craig Jerusalim Small Cap Funds Research Frank Settino Andreas Hoppe Monique Malo Trading Jennifer Law Kathleen Gregoire Shanthu David Derivatives Thomas Litchfield Patrick Thillou CIBC Global Asset Management Inc. November 2009 4

PORTFOLIO COMMENTS HOW WE CHOOSE OUR STOCKS Quantitative Qualitative Book Value 500 Stock Universe Normalized historical ROE Normalized historical P/E CIBC Global Asset Management Inc. Fundamental analysis Intrinsic Value Corporate Interviews Research reports November 2009 5 40 -60 Stock Universe

PORTFOLIO COMMENTS HOW WE CHOOSE OUR STOCKS CIBC Global Asset Management Inc. Source: Reuters Stock. Val, Nov. 23, 2009 November 2009 6

PORTFOLIO COMMENTS HOW WE CHOOSE OUR STOCKS Projected Book Value = Current Book Value + consensus earnings - dividends Normalized EPS = Proj BV x average ROE from past 10 years Intrinsic Value = Normalized EPS x 10 year average P/E multiple + dividends Outcome: In this case, we conclude that TD Bank is 48% undervalued and National Bank is just 25% undervalued, thus more upside potential in TD. CIBC Global Asset Management Inc. November 2009 7

PORTFOLIO COMMENT BALANCE OF CYCLICAL VS NON CYCLICAL Renaissance Canadian Core Value Fund Dec 2007 Sept 2008 Oct 2009 S&P/TSX Energy 35% 22% 25% 17% 34% 21% 46% 25% Materials 13% 8% 13% 21% Industrials 3% 1% 8% 5% 11% 5% 8% 5% Information Technology 2% 3% 6% 3% 31% 12% 10% 0% 32% 9% 12% 0% 16% 4% 7% 0% 12% 4% 3% 1% 9% 11% 5% 4% 31% 30% 1% 35% 33% 2% 40% 34% 2% 33% 30% 1% Natural Resources Economically Sensitive Consumer Related Consumer Discretionary Consumer Staples Health Care Telecom Interest Sensitive Financials Utilities Source: CIBC Global Asset Management Inc. as of October 31, 2009 CIBC Global Asset Management Inc. November 2009 8

Renaissance Canadian Core Value Fund Top 10 Holdings & Overweights - As at October 31, 2009 Top 10 Overweights Top 10 Holdings Company (%) Royal Bank of Canada 8. 0 Franco Nevada Corp. 4. 1 Toronto Dominion Bank 7. 1 Empire Co. 3. 3 Encana Corp. 6. 4 Toronto Dominion Bank 2. 7 Cdn. National Resources 5. 4 Encana 2. 6 Barrick 4. 5 Bell Aliant 2. 4 Bank of Nova Scotia 4. 4 Aastra Technologies 2. 2 Franco Nevada Corp. 4. 4 Canadian Natural Resources 2. 2 Suncor Energy 4. 2 CGI Group 2. 1 Bank of Montreal 4. 2 Canadian National Railway 1. 9 Cdn. National Railway 4. 1 Celestica 1. 9 Source: CIBC Global Asset Management Inc. November 2009 9

MARKET COMMENTARY Key Conclusions § THE RECESSION IS ENDING § THE CONSENSUS IS FOR A WEAK, BUT POSITIVE ECONOMY IN 2010 § THERE WILL BE DISAPPOINTMENTS AND CONCERNS ABOUT THE RECOVERY, BUT THE FEDERAL RESERVE STILL HAS ITS FOOT ON THE GAS PEDAL § IN OUR BALANCED PORTFOLIOS, WE HAVE MOVED FROM 35% EQUITIES IN MARCH 2009 TO 61% TODAY § OUR GOAL IS THE PROPER BALANCE BETWEEN THE POTENTIAL OF COMMODITY STOCKS AND OTHER CYCLICALS, AND THE SAFETY OF STAPLES, BANKS AND OTHER VALUE-ORIENTED STOCKS (WITH DIVIDENDS) § IN THE VALUE PORTFOLIOS, OUR MAIN OVERWEIGHTS ARE BANKS (5%), STAPLES (5%) AND TELCOS (3%) § THE MAIN UNDERWEIGHTS ARE FERTILIZERS (-4%) AND BASE METALS (-4%) § OUR GOAL IS TO PARTICIPATE IN ANY MARKET UPSIDE WHILE HOLDING NAMES THAT SHOULD PROTECT THE DOWNSIDE CIBC Global Asset Management Inc. November 2009 10

MARKET COMMENTARY The Key Issues THE POSITIVES THE CONCERNS Economic Indicators Have Turned Up Job Growth and Consumer Spending Strong Growth in Asia (China) Will The Fed/Bank of Canada Tighten? Interest Rates Are Low, Credit Is Easy Will The Economic Rebound Fizzle & Need More Stimulus? Consumer Confidence Is Improving Corporate Profits Are Stronger Than In Past Recessions Valuations Are Fair If Earnings Meet Expectations Many Investors Have Been Skeptical Throughout The Entire Rally Can China Maintain Its Growth? Strength/Weakness of $U. S. Government Deficits and Taxes Country Risk Investors Still In Money Market Funds CIBC Global Asset Management Inc. November 2009 11

MARKET COMMENTARY ECONOMIC INDICATORS, EMPLOYMENT ARE IMPROVING Time Before Job Growth CIBC Global Asset Management Inc. Source: Ned Davis Research, September 30, 2009 November 2009 12

MARKET COMMENTARY LOW INTEREST RATES CONTINUE TO PROVIDE STIMULUS CIBC Global Asset Management Inc. Source: Ned Davis Research, September 30, 2009 November 2009 13

MARKET COMMENTARY WHERE WILL SAVINGS RATE STABILIZE? CIBC Global Asset Management Inc. November 2009 14

MARKET COMMENTARY ECONOMIC OUTLOOK – WEAK BUT POSITIVE RECOVERY Economists expect weaker growth following stimulus Source: CIBC Economic Insights, October 27, 2009 CIBC Global Asset Management Inc. November 2009 15

MARKET COMMENTARY RISE IN INTEREST RATES EXPECTED TO BE MODEST Source: CIBC Economic Insights, October 27, 2009 CIBC Global Asset Management Inc. November 2009 16

MARKET COMMENTARY PROFITS HELD IN THIS RECESSION – MORE ROOM TO HIRE Source: National Bank Financial, Economic & Financial Outlook, September, 2009 CIBC Global Asset Management Inc. November 2009 17

MARKET COMMENTARY CHINA – STRONG CAPITAL SPENDING DRIVING COMMODITIES Source: Ned Davis Research CIBC Global Asset Management Inc. November 2009 18

MARKET COMMENTARY TOP-DOWN & BOTTOM-UP ESTIMATES HAVE STABILIZED Analyst Estimates 2009 2010 Dec 31, 2008 $840 $1005 Feb 28, 2009 $713 $872 Apr 30, 2009 $653 $812 Aug 31, 2009 $618 $789 Oct 30, 2009 $623 $790 Source: TD Newcrest, Investment Strategy, September 2, 2009 CIBC Global Asset Management Inc. November 2009 19

MARKET COMMENTARY STOCK VALUATIONS ARE IN NEUTRAL TERRITORY Source: TD Newcrest Investment Strategy, September 2, 2009 CIBC Global Asset Management Inc. November 2009 20

MARKET COMMENTARY COMMODITIES – OIL, GAS, COPPER, GOLD Oil Gas Copper Gold Source: Reuters Stock. Val November 24, 2009 CIBC Global Asset Management Inc. November 2009 21

MARKET COMMENTARY BANKS FAIRLY VALUED BUT SOLID YIELDS EPS P/E Price 2009 E 2010 E 2011 E 2010 2011 Yield BMO $53. 80 $4. 20 $4. 15 $5. 11 12. 96 10. 53 5. 22% BNS $49. 62 $3. 57 $3. 60 $4. 45 13. 78 11. 15 3. 96% CM $68. 88 $5. 81 $5. 78 $6. 72 11. 92 10. 25 5. 06% NA $63. 43 $6. 31 $5. 97 $6. 63 10. 62 9. 57 3. 91% RY $58. 09 $4. 43 $4. 37 $5. 16 13. 29 11. 26 3. 45% TD $67. 41 $5. 35 $5. 46 $6. 45 12. 35 10. 45 3. 62% Totals 12. 49 10. 53 4. 2% Source: Thomson One IM Estimates November 24, 2009 CIBC Global Asset Management Inc. November 2009 22

MARKET COMMENTARY WHICH SECTORS LEAD AFTER A RECESSION? Source: Scotia Strategic Edge Report, September 2009 CIBC Global Asset Management Inc. November 2009 23

MARKET COMMENTARY WHEN WILL INVESTORS SHIFT OUT OF MONEY MARKET? Source: Scotia Strategic Edge Report, September 2009 CIBC Global Asset Management Inc. November 2009 24

CONCLUSIONS § WE BELIEVE THE GLOBAL ECONOMY IS PAST THE BOTTOM § THE KEY QUESTION IS WHETHER INVESTORS ARE EXPECTING TOO FAST A RECOVERY § THERE IS ROOM FOR A MARKET CORRECTION ON ANY DISAPPOINTING ECONOMIC OR EARNINGS NEWS, BUT WE DO NOT EXPECT IT TO BE MAJOR § OUR STRATEGY CONTINUES TO BE § FOCUS ON STOCKS THAT SHOW THE BEST VALUE § MAINTAIN A BALANCE OF CYCLICALS VS NON-CYCLICALS § EMPHASIZE STOCKS THAT PAY DIVIDENDS AND CAN GROW THOSE DIVIDENDS CIBC Global Asset Management Inc. November 2009 25

THANK YOU Any Questions? “This presentation is provided for general information purposes only and does not constitute investment advice nor does it constitute an offer or solicitation to buy or sell any securities referred to. This information contained in this presentation has been obtained from sources believed to be reliable and is believed to be accurate at the time of publishing, but we do not represent that it is accurate or complete and it should not be relied upon as such. All opinions and estimates expressed in this presentation are as of the date of publication unless otherwise indicated, and are subject to change. CIBC Global Asset Management Inc. uses multiple investment styles for its various investment platforms. The views expressed in this document are the views of the Global Equity Team and may differ from the views of other teams. The material and/or its contents may not be reproduced or distributed without the express written consent of CIBC Asset Management. ” © 2008 CIBC Global Asset Management Inc. operates under the brand name of CIBC Asset Management and is a member of the CIBC Group of Companies. "CIBC Securities Inc. is a wholly-owned subsidiary of CIBC and is the principal distributor of the CIBC Mutual Funds. Commissions, trailing commissions, management fees, and expenses all may be associated with mutual fund investments. Please read the simplified prospectus before investing. To obtain a copy of the CIBC Mutual Funds and CIBC Family of Managed Portfolios simplified prospectus, call CIBC Securities Inc. at 1 -800 -465 -3863. Alternatively, you may obtain a copy from your advisor. Mutual funds are not guaranteed, their values change frequently, and past performance may not be repeated. (tm) CIBC Asset Management and the CIBC logo are registered trademarks of Canadian Imperial Bank of Commerce. " CIBC Global Asset Management Inc. November 2009 26

Now Is The Time To Buy Stocks —