Investing in CIBC mutual funds

Mutual funds are a core part of many portfolios in Canada. As a financial advisor, you want to offer your clients trusted investment options that match their goals. Having a long history in the financial sector adds credibility to institutions that offer mutual funds to investors. That's where the Canadian Imperial Bank of Commerce (CIBC) mutual funds come in. 

Whether your clients are saving for retirement or building long-term wealth, CIBC offers a wide range of mutual funds to support their needs. From income-focused products to growth-oriented solutions, their lineup covers most investor profiles. In this article, Wealth Professional Canada will help you understand what sets CIBC mutual funds apart. 

How do CIBC mutual funds work?  

CIBC mutual funds pool money from many investors to build a diverse portfolio consisting of these investment types (and more): 

• stocks 
• bonds 
• short-term money market instruments 
• combination of all these investment types 

Each investor owns units of the fund, which represent a share of the total portfolio managed by CIBC Asset Management. Then, each fund is managed by a CIBC professional portfolio management team. 

These fund managers select securities based on the investment objective and strategy of the fund. They monitor performance and adjust the holdings as needed to help meet long-term goals. 

In other words, CIBC mutual funds operate much like other mutual funds. They are not traded on stock exchanges like exchange-traded funds (ETFs) or stocks. 

Instead, they are bought and sold through the fund company (CIBC or authorized dealers) at their net asset value (NAV). This is calculated at the end of each trading day. 

A word of caution 

CIBC mutual funds are not covered by the Canadian Deposit Insurance Corporation (CDIC). This means that your clients’ investment is not insured the way a savings account might be. 

So, can your clients lose all of their money?  

That kind of scenario is highly improbable—especially with a large institution like CIBC. Such is a bit of an overstatement for typical diversified mutual funds. 

Mutual fund assets are held separately from CIBC’s corporate assets. So, even if the bank encounters financial trouble, your clients’ investment remains protected from creditors. While capital loss is possible, a total loss is rare unless the fund invests in highly speculative assets or experiences fraud. 

Higher returns often involve more risk 

There’s always a risk of loss when investing in mutual funds, particularly in funds with greater exposure to market volatility. That’s why your clients should be prepared when fund values fluctuate.  

Overall, they must understand the trade-off between risk and reward so they can choose investments that align with their goals and risk tolerance. 

What’s good about CIBC mutual funds? 

Investing in CIBC mutual funds offers a lot of advantages. The bank has an extensive array of mutual fund solutions: 

Savings Funds 

CIBC’s Savings Funds are designed for investors seeking low-risk growth and steady income. These funds primarily hold money market instruments and work toward preserving capital. 

Ideal for short- to long-term plans, this option offers flexible access and allows your clients to redeem units anytime without penalty. 

Income Funds 

CIBC’s Income Funds offer a low to medium risk option. If your clients are looking for a steady income with some potential for long-term growth, this might be the best choice. 

These funds invest in a mix of fixed income securities and equities. Income Funds also strive to provide higher earnings than Savings Funds—all while preserving capital and offering moderate growth. 

Growth Funds 

CIBC’s Growth Funds are best for those with long-term plans since they have higher potential returns than other asset classes. However, Growth Funds also come with greater risk as they focus mainly on stocks while generating capital growth over time. 

While they carry more volatility, they offer greater return potential than the lower-risk asset classes mentioned above. 

Circling back to flexibility, CIBC mutual funds can be held in your clients’ own accounts. Their savings and earnings can also be transferred into an investor’s registered accounts like their: 

• Registered Retirement Savings Plan (RRSP) 
• Registered Retirement Income Fund (RRIF) 
• Registered Education Savings Plan (RESP) 
• non-registered account types 

Sustainable investment strategies 

If your clients want their investments to reflect environmental, social, and governance (ESG) values, CIBC also has sustainable mutual funds. 

These funds are targeted to deliver competitive performance while considering responsible investing principles. They are actively managed and follow ESG screening and integration practices. 

CIBC’s sustainable fund lineup includes: 

• CIBC Sustainable Canadian Core Plus Bond Fund 
• CIBC Sustainable Canadian Equity Fund 
• CIBC Sustainable Global Equity Fund 
• CIBC Sustainable Conservative Balanced Solution 
• CIBC Sustainable Balanced Solution 
• CIBC Sustainable Balanced Growth Solution 

Watch this video to learn more about CIBC’s sustainable investment solutions: 

Do you lack experience in dealing with clients who are interested in mutual funds? We got you covered! Check out this beginner-friendly guide to investing in mutual funds. 

New CIBC income advantage funds and ETF Series 

On May 21, 2025, CIBC Asset Management launched the CIBC Income Advantage Fund and the CIBC US Dollar Income Advantage Fund. These funds can provide your clients access to Collateralized Loan Obligations (CLOs), offering income potential, diversification, and floating rate protection. 

The fund is available as an ETF (ticker: CCLO) trading on CBOE Canada. It’s also actively managed by CIBC’s structured credit team. 

A short history of Canadian Imperial Bank of Commerce 

The Canadian Imperial Bank of Commerce is the “youngest” large bank in Canada. It was formally established in 1961, after the merger of the Canadian Bank of Commerce and the Imperial Bank of Canada. 

The Canadian Bank of Commerce was founded by William McMaster to challenge the Bank of Montreal. A few years later, the Imperial Bank of Canada was founded by Henry Stark Rowland, the former Vice President of Canadian Bank of Commerce. 

Both banks grew into their respective niches in the decades that followed. It was Imperial Bank’s former chairman L. Stuart Mackersy who presented the then Commerce president Neil McKinnon with the proposal of merging the two banks. This came as the national economy was booming, due to Canada’s capitalizing on the now-industrialized way of harnessing its natural resources. 

So, on the first of June 1961, the merger was completed with the creation of the Canadian Imperial Bank of Commerce. The bank now has more than 1,200 branches in the country. This consolidation would be considered as the largest merger of two chartered banks in Canadian history. 

At present, CIBC is now the smallest of the Big Five banks of Canada, with a market cap of $86.47 billion. 

CIBC’s notable achievements 

Apart from its storied past and now being listed as one of the Big Five banks, CIBC has a few more distinctions:  

• It’s the first and only Canadian bank to have a “floating branch” on a passenger ship, the MV Jean Brilliant, serving as many as 5,000 clients in its heyday. 

• In 1967, apart from computerizing customer data, CIBC was the first bank to offer a 24-hour cash dispenser, many years before the introduction of ATMs. 

• In 1992, CIBC first introduced automated telephone banking. 

• In 1995, CIBC introduced its website and online banking services. 

• In 2010, CIBC was the first to offer mobile banking services via an iPhone app. 

Should you recommend CIBC mutual funds to your clients? 

Investing in CIBC mutual funds can be a good strategy for your clients, but that can be subjective as it depends on the investor’s needs. They should first consider their financial objectives and budget. Understanding their risk appetite is also vital. If these align with the fund's investment strategy, then CIBC mutual funds can be a great addition to their portfolio. 

CIBC has a broad selection of mutual funds across risk levels and asset classes. You can recommend what you think is best for your clients from this variety of investment choices. With the support of CIBC’s professional fund managers and the bank’s reputation, these products can be useful for investors who want diversification and income growth. 

Want to read the latest updates on the mutual funds market? Check out our Mutual Funds page.