Investor Solutions

BNS Automatic Portfolio Allocation™ Deposit Notes, Series 2

ISSUE SUMMARY
Product Type: Principal Protected Note
Fund Code: SSP110
Issuer: The Bank of Nova Scotia
Issue Date: 06/29/2007
Maturity Date: 06/29/2012 – 5.0 yr term
Principal Payment: 100% Principal repayment if held to maturity
Variable Payment & Optimizing Structure: Appreciation of Portfolio diversified by index class and geographic exposure at redemption (See Variable Return Calculation for more details)

Each year, on the Calculation Date, the value of the best performing Asset remaining in the Portfolio is used to determine Realized Value. Once an Asset’s value is used to determine a Realized Value, it is discarded from the Portfolio for future performance calculations. At maturity, the Variable Return payable, if any, is equal to the average of the Realized Values multiplied by the Principal Amount.

Asset prices tend to illustrate cyclical movements and the indices are weakly correlated. The BNS Automatic Portfolio Allocation Deposit Notes, Series 2 take advantage of this by locking in the return of the best performing asset every year.

Portfolio: The five Assets comprising the Portfolio are as follows:
  • EURO STOXX 50® Index
  • Hang Seng Index®
  • Nikkei-225™ Index
  • S&P Goldman Sachs Commodity Index (GSCI®) Excess Return
  • Scotia Capital Universe Overall Bond Index (Total Return)

ISSUE DOCUMENTS
Information Statement: English | French
Client Summary / Information Statement: English | French
CURRENT ISSUE STATUS
Current Bid Price: $100.00
Term Remaining: 0.0 Years
Annualized Return: 0.00%
Adjusted Cost Base if held since Inception: $100.00
Current ETC: Nil
ETC End Date: 06/29/2009
Historical Bid Prices: view

VARIABLE RETURN

The Variable Return calculation is the formula used to determine the Variable Return on the Notes at the Maturity Date. The Variable Return per Note is calculated as follows:

Variable Return = Principal Amount x Average Realized Value

The Average Realized Value will equal the simple average of the Realized Values (which can be positive or negative) for each Calculation Date. The Realized Value, on a particular Calculation Date is the return of the best performing Asset of the Assets remaining in the Portfolio at that Calculation Date, expressed as a percentage of its increase or decrease in value from the Issue Date to the relevant Calculation Date. If a particular Asset has been used to determine the Realized Value for any Calculation Date, than that Asset is removed from the Portfolio and its performance will no longer factor into the calculation of Variable Return for any subsequent Calculation Date.

Performance Commentary


Performance Commentary
s at January 13, 2012 the performance of the BNS Automatic Portfolio Allocation™ Deposit Notes, Series 2 on a NAV basis is -3.07% since inception. The Notes have locked in the returns from the S&P GSCI Commodity Index, the DEX Universe Bond Index, the Hang Seng Index® and the DJ Euro Stoxx Index at mixed positive and negative levels. The Nikkei-225 Index is the next index to be locked in and it is well below its initial level which is reducing the NAV of the Note. The Canadian yield curve is consistently lower throughout all maturities making the zero coupon component more valuable and contributing to the improvement in NAV for the Notes since December 2010.

Index Performance
Index Weight Initial Level
06/29/2007
Current Level
08/23/2019
Index Performance Lock-In Date
EURO STOXX 50® Index 20.00% 4,489.77 2,802.55 -37.58% 06/29/2011
Hang Seng Index® 20.00% 21,772.73 20,248.90 -7.00% 06/29/2010
Nikkei-225™ Index 20.00% 18,138.36 8,730.49 -51.87% 06/27/2012
S&P Goldman Sachs Commodity Index (GSCI®) Excess Return 20.00% 605.53 1,033.94 70.75% 06/29/2008
Scotia Capital Universe Overall Bond Index (Total Return) 20.00% 628.90 717.16 14.03% 06/29/2009
Overall Return       -2.33%  



Note: An investment in principal protected notes may not be suitable for all investors. Important information about these investments is contained in the Information Statement of each note. Investors should obtain and carefully read a copy prior to investing, paying particular attention to the associated risks. Past performance is not indicative of future returns. Commissions, trailing commissions, management fees and expenses all may be associated with these investments. Principal is guaranteed at maturity only for products purchased at their issue price and held to maturity. The investment return on the notes, if any, is uncertain in that an investor may not receive more than return of the principal amount at maturity. A person should reach a decision to invest in the notes only after carefully considering with his or her advisor, the suitability of this investment in light of his or her investment objectives and the information set out in the respective Information Statement.

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