Descriptive Transcript

[This video uses animation to illustrate spoken content. The CIBC logo appears with the video title, “RBA Select Equity Yield CIBC 15% Index.”]

The RBA Select Equity Yield CIBC 15% 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 15% Index” appears.]

The RBA Select Equity Yield CIBC 15% 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 15% 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,

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and allocates assets on an equal weighted basis.

Rebalance

[Text reads, “Rebalance.” The bars change in height.]

Each month, the portfolio is rebalanced to equal weights to avoid concentration risk.

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Index volatility is managed at 15% 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 15% Index

Dividend investing reimagined.

[The CIBC logo appears. Text reads, “CIBC Capital Markets.”]