Investor Solutions

BNS SC Universe Bond Index™ Deposit Note, S2

ISSUE SUMMARY
Product Type: Principal Protected Note
Fund Code: 064149TX5
Issuer: The Bank of Nova Scotia
Issue Date: 06/21/2006
Maturity Date: 06/21/2011 – 5.0 yr term
Principal Payment: 100% Principal repayment if held to maturity
Variable Payment: Variable Return, if any, linked to the performance of the Scotia Capital Universe Overall Bond IndexTM (Total Return) (See Variable Return Calculation for more details)
Underlying Index:: The Index consists of semi-annual pay fixed rate bonds denominated in Canadian dollars with a remaining effective term to maturity of at least one year, rated BBB or higher. The Index includes four main credit or borrower categories: bonds issued by the Government of Canada, Provincial bonds, Municipal bonds and Corporate bonds. Issues are reviewed for eligibility on an individual basis. A full description of the Index methodology is available on the internet site www.canadianbondindices.com . Neither the Bank nor Scotia Capital Inc. is the sponsor of the Index.
  • SC Universe Bond Index™

ISSUE DOCUMENTS
Information Statement: English | French
Client Summary / Information Statement: English | French
CURRENT ISSUE STATUS
Current Bid Price: $129.79
Term Remaining: 0.0 Years
Annualized Return: 29.79%
Adjusted Cost Base if held since Inception: $80.88
Current ETC: Nil
ETC End Date: 06/21/2008
Historical Bid Prices: view

VARIABLE RETURN CALCULATION

Maturity Payment Amount = Principal Outstanding + Variable Return

Principal Outstanding equals the Original Principal Amount ($100) less the aggregate of all Semi-Annual Partial Principal Repayments made during the term of the Notes.

The Variable Return, if any, on a Note equals (i) NAVFINAL ; less (ii) the Principal Outstanding.

NAVFINAL is an amount, expressed per Note, equal to the NAV determined on the third Business Exchange Day prior to the Maturity Date, excluding any amount notionally held in the Principal Repayment Account which will be paid out as a Semi-Annual Partial Principal Repayment on the Maturity Date determined on the third Exchange Business Day prior to the Maturity Date.

NAV means, at any time, the total of: (i) the value of the Index Account based on the then prevailing Closing Value (the ‘‘Index Account Value’’) and the value of the Bond Account; plus (ii) any cash in the Principal Repayment Account; minus (iii) the accrued and unpaid Program Fee; divided by (iv) the number of Notes outstanding.

Example:

NAVFINAL= $120.00

Principal Outstanding = $83.00

Total of Semi-Annual Partial Principal Repayments = $17.00

(i) Variable Return (Min 0) = NAVFINAL - Principal Outstanding

= $120.00 - $83.00

= $37.00

(ii) Maturity Payment Amount = Principal Outstanding + Variable Return

= $83.00 + $37.00

= $120.00

Maturity Payment Amount of $120.00 per Note is in addition to total Semi-Annual Partial Principal Repayments of $17.00 paid over the term of the Notes.

If the Notes are held to the Maturity Date, the full Original Principal Amount ($100 per Note) will have been paid in total by the Maturity Date (regardless of the performance of the Portfolio and even if NAVFINAL is less than $100 for any reason.) An Investor cannot elect to receive the Variable Return, if any, prior to the Maturity Date and the Notes cannot be redeemed or retracted prior to the Maturity Date. There is a possibility that an Investor may not receive any Variable Return.


Performance Commentary

Index Performance
Index Weight Initial Level
06/21/2006
Current Level
02/02/2016
Index Performance Lock-In Date
SC Universe Bond Index™ 100.00% 601.81 810.99 34.76% 06/16/2011
Overall Return       34.76%  

Performance Commentary

Partial Principal Repayment History
Payment Date Annualized Yield Payment Per Note
04/28/2008 4.25% $2.125
10/31/2008 4.25% $2.125
04/27/2009 4.25% $2.125
10/26/2009 4.25% $2.125
04/26/2010 4.25% $2.125
10/27/2010 4.25% $2.125
04/26/2011 4.25% $2.125
10/26/2011 4.25% $2.125
04/26/2012 4.25% $2.125
10/26/2012 4.25% $2.125
  TOTAL $21.250

Semi-Annual Partial Principal Repayments

Subject to the occurrence of a Protection Event or an Extraordinary Event (which may include a Market Disruption Event which continues in effect for eight or more consecutive Business Days), Semi-Annual Partial Principal Repayments, if any, per Note will be payable in Canadian dollars on the 26th day or, if such day is not a Business Day, on the next following Business Day, in April and October (except October, 2012) in each year during the term of the Notes (a "Semi-Annual Partial Principal Repayment Date"), commencing April, 2008. The amount of each Semi-Annual Partial Principal Repayment to be paid per Note on a particular Semi-Annual Partial Principal Repayment Date will be an amount equal to 2.125% of the Original Principal Amount per Note. Upon payment of any Semi-Annual Partial Principal Repayment, the aggregate amount of such payment will be deducted from the Principal Repayment Account. Program Fees will not be deducted from the Principal Repayment Account. A maximum of $19.125 per Note of Semi-Annual Partial Principal Repayments will be paid over the term of the Note.


Index Account Exposure
Index exposure was 100% on the issue date (October 26, 2007) and has changed as noted below:

Index Account Exposure
Date Index Exposure
04/28/2008 100.00%
10/31/2008 100.00%
04/27/2009 100.00%
10/26/2009 100.00%
04/26/2010 100.00%
10/27/2010 100.00%
04/26/2011 100.00%
10/26/2011 100.00%
04/26/2012 100.00%
10/26/2012 100.00%



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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