Mutual Funds

TD Bank and CIBC Bank

Rohan Kommu John Gulluru

Mutual Funds: A mutual fund is an investment that pools money from many individuals and invests it according to the fund's stated objectives. It can also be defined as an investment programme funded by different investors in exchange to bonds or stocks to be brought in return of a company.

Mutual Funds of TD:

Money Market Funds: Fund Type T Bills TD US Money Market ($US) ROI(1Yr) 0.40 0.06 Fund Asset $141.40 million as of Mar.31,2013 699.50 million as of Mar.31,2013 Min. Initial Investment $100 $100 Risk LOW Low Min. Regular Investment Plan $25 $25

Recommended for short to long term investors who are interested in monthly interest and minimum capital risk. Investors in this Fund should be willing to accept a very low level of risk. Minimum capital risk and exposure to the US dollar. Individuals with middle and higher income level groups can invest in these funds.

Income Funds: Fund Type Short Term Income Funds TD Canadian Bond ROI(1Yr) 2.1 3.4 Fund Asset $3323.49 million as of Mar. 31, 2013 $11249.39 million as of Mar. 31, 2013 Min. Initial Investment $100 $100 Risk MEDIUM LOW Min. Regular Investment Plan $25 $25

Recommended for short to medium term investors who are seeking monthly income from conservative investments. Contribution of the income component of a diversified portfolio.

 Investors in this Fund should be willing to accept a low level of risk. Expecting a regular income stream. Individuals with a middle income level and also retired individuals can invest in these funds.

Growth Funds: Fund Type TD Canadian Equity Fund TD Dividend Growth Fund ROI(1Yr) 1.4 11.0 Fund Asset $2596.85 million as of Mar. 31, 2013 $5470.91 million as of Mar. 31, 2013 Min. Initial Investment $100 $100 Risk MODERATE MODERATE Min. Regular Investment Plan $25 $25

Recommended for Investors both short and long term seeking exposure to some foreign equities. Investors who are more interested in growth than income can invest in these funds. The level of Risk associated is moderate. People who have lump sum amount can make returns of these funds.

T Bills Performance 1mo 0.03 3mo 0.08 6mo 0.17 1yr 0.34 2yrs 0.35 3yrs 0.30 5yrs 0.51 10yrs 1.42 YTD 0.05 SI* 2.88

TD US Money Market ($US) Performance 1mo 0.00 3mo 0.01 6mo 0.02 1yr 0.06 2yrs 0.06 3yrs 0.06 5yrs 0.37 10yrs 1.35 YTD 0.01 SI* 3.15

Short Term Income Funds Performance 1mo 0.6 3mo 0.6 6mo 1.1 1yr 2.1 2yrs 2.7 3yrs 2.3 5yrs 3.6 10yrs 3.7 YTD 0.5 SI* 5.5

TD Canadian Bond Performance 1mo 0.9 3mo -0.0 6mo 1.0 1yr 3.4 2yrs 6.1 3yrs 5.4 5yrs 5.7 10yrs 5.5 YTD 0.1 SI* 7.6

TD Canadian Equity Fund Performance 1mo 1.6 3mo 6.2 6mo 10.8 1yr 1.4 2yrs -4.7 3yrs 4.0 5yrs -0.5 10yrs 9.5 YTD 4.2 SI* 8.2

TD Dividend Growth Fund Performance 1mo 2.5 3mo 7.8 6mo 12.2 1yr 11.0 2yrs 3.8 3yrs 8.0 5yrs 3.8 10yrs 9.4 YTD 5.5 SI* 9.7

Mutual Funds of CIBC Savings Funds (CIBC) Name Of Mutual Fund Return(1 year) 0.5 0.7 1,676,517,501 Fund Assets Min Initial Investment 500 500 Min Regular Invest Plan 25 25 Risk

CIBC Canadian T-Bill Fund CIBC Money Market Fund

656,503,204

Low Low

Income Funds Name Of Mutual Fund Return(1 year) 1.7 0.7 2,862,795,515 Fund Assets Min Initial Investment 500 500 Min Regular Invest Plan 25 25 Risk

Short Term Income Fund CIBC Canadian Bond Fund

365,258,753

Low Low

Growth Funds Name Of Mutual Fund Return(1 year) 4.4 Fund Assets Min Initial Investment 500 Min Regular Invest Plan 25 Risk

CIBC Balance Fund CIBC Canadian Equity Fund

478,611,963

Low to Medium Medium

2.2 322,176,947

500

25

Savings Funds: Yields (%) as Rates of Return (%)* as of: of: March 31, 2013 April 3, 2013 Curren Effectiv 1 6 1 3 5 10 Since Inception t e mth mt yr yrs yrs yrs Inception Date Yield Yield ** hs **

CIBC Canadian T-Bill Fund - Class 0.53 A Units

0.53

0.0

0.3 0.5 0.5 -

0.5

05/08

CIBC Money Market Fund - Class 0.68 A Units

0.68

0.1

0.3 0.7 0.6 0.8 1.6 3.7

11/88

Income Funds Rates: Current Prices as of: April 3, 2013 Rates of Return (%)* as of: March 31, 2013 Previous Prices as of: April 2, 2013 Income Funds Current Previous Change 1 6 1 3 5 10 Since Inception Price $ Price $ $ mth mths yr yrs yrs yrs Inception Date CIBC Short-Term Income Fund 11.9557 11.9515 0.0042 0.1 0.6 2.0 2.5 2.5 2.9 6.4 12/74 CIBC Canadian Bond Fund 14.1441 14.1087 0.0354 0.5 1.3 5.0 6.3 5.5 5.3 6.9 12/87

Growth Funds Rates: Current Prices as of: April 3, 2013 Previous Prices as of: April 2, 2013 Growth Funds Current Previous Change $ Price $ Price $ CIBC Balanced Fund 17.4112 17.5525 -0.1413 CIBC U.S. Equity Fund 10.3536 10.4819 -0.1283 Rates of Return (%)* as of: March 31, 2013 1 6 1 3 5 10 Since Inception mth mths yr yrs yrs yrs Inception Date -0.2 4.8 4.4 4.1 2.2 5.3 6.0 12/87 1.4 6.3 5.1 9.9 3.4 5.7 1.2 09/06

Savings Fund Analysis T-Bills Funds

As we know that most of the saving type of funds are low in terms of risk. If you want a more secure investment with low investment risk and you are looking for a short-term investment. We can see that CIBC bank and TD bank have a same type of mutual funds called as T-Bill Mutual Funds The minimum initial investment for CIBC is $500 whereas minimum initial investment for TD Bank is $100.TD Bank in this scenario has a competitive advantage because the investor who is new into the market and who has an average income would invest in TD Bank In general investing in T-Bills Mutual funds is considered to be low in risk and both the mutual funds are low in risk

The investor would prefer to invest in CIBC T-bill Funds as he would achieve a higher rate of return in this type of mutual fund. Consider that the investor wants to invest in a 3 year T Bill Mutual Fund. The investor would prefer CIBC T Bill because this would give him higher return. If the investor is looking for long term type of investment say 10 years; TD Bank would be better because this has proved a certain rate of return in long term.

Canadian Money Market Mutual Funds Comparing the same type of Money Market Mutual Funds of TD Bank and CIBC Bank. The minimum initial investment for CIBC is $500 whereas minimum initial investment for TD Bank is $100.TD Bank in this scenario has a competitive advantage because the investor who is new into the market and who has an average income would invest in TD Bank Except the above factor , TD Bank has an edge in all the other factors The rate of return in terms of short term investing i.e. investing for 1 year in Money Market Mutual Funds in CIBC Mutual Funds is more. The investor would get a return of 0.7% when compared to 0.34% in TD Money Market Mutual Funds. In terms of long term investing, TD Mutual Funds would be a better option because the return rate is 4.11 compared to 3.77 in CIBC Money Mutual Funds.

Income Fund Analysis

Short Term Income Funds Income Fund investment is considered to be a medium term investment. Compared to Savings Funds these investments distribute interest income and offer a higher potential return. The minimum initial investment in CIBC Short Term Income Funds is $500 whereas the minimum initial investment in TD Short Term Income Funds is $100. The Short Term Income Funds are considered to be slightly riskier when compared to Savings Mutual Funds. The rate of return in terms of short term investing i.e. investing for 1 year in Short Term Income Mutual Funds in TD Mutual Funds is more. The investor would get a return of 2.2% when compared to 2.1% in CIBC Short Term Mutual Funds. In terms of long term investing i.e. 5 years , TD Short Term Income Funds will achieve a rate of return of 3.5 which is higher when compared to CIBC Short Term Income Funds

So an investor would be highly beneficial if he invest his money both in long term as well as short term in TD Short Term Income Funds

Canadian Bond Mutual Funds The fundamental investment objective is to earn a high rate of interest income through investments in high- quality bonds and debentures issued principally by Canadian borrowers in Canadian dollars. These securities may consist of debt obligations of, or guaranteed by, Canadian federal, provincial or municipal governments, Canadian chartered banks, Canadian loan or trust companies or Canadian corporations. Canadian Bond Mutual Fund Analysis The minimum initial investment in CIBC Canadian Bond Funds is $500 whereas the minimum initial investment in TD Canadian Bond Funds is $100. TD Bank in this scenario has a competitive advantage because the investor who is new into the market and who has an average income would invest in TD Bank The rate of return in terms of short term investing i.e. investing for 3 years in Canadian Bond Mutual Funds in TD Mutual Funds is more. The investor would get a return of 5.7% when compared to 5.0% in CIBC Short Term Mutual Funds. In terms of long term investing i.e. 5 years , TD Short Term Income Funds will achieve a rate of return of 5.6 which is higher when compared to CIBC Short Term Income Funds The investor would be highly beneficial if he wants to invest in TD Canadian Mutual Funds both long term as well as short term and would gain higher rate of returns. Growth Fund Analysis:

Canadian equity Funds From the above tables the Return on investment on Canadian equity fund of CIBC is more when compared to TD Bank. The risk associated with these type of investment is low. But if the fund is invested for a long time then TD would be the best option to the investor as the return on investment for 10 years for CIBC is 5.7 which is way low when compared to that of TD which is 9.5. Thus investing in CIBC is a better option in a long run. The total fund asset value of CIBC is much high when compared to that of TD bank.

The net asset value of TD is more when compared to that of CIBC. TD Dividend Growth Fund

Comparing TDs Dividend growth fund with that of CIBSs Balance funds. The risk associated with both the investments is not high or low, it is medium. Thus any kind of investor can invest their funds in this type of mutual fund. From the above tables the we can clearly see that TD has a higher return on the investment which is 11.0 when compared with CIBC whose return on investment is 4.4. When considered in a long run also TD has a higher return on the investment of 9.4 when compared to that of CIBC which is 5.3. Thus investment of Funds in TD is a best option rather than CIBC.