Investor Solutions

BNS Canadian Banks Index Deposit Notes, Series 72

ISSUE SUMMARY
Product Type: Principal Protected Note
Fund Code: SSP443
Issuer: The Bank of Nova Scotia
Issue Date: 12/11/2020
Maturity Date: 12/13/2027 – 7.0 yr term
Principal Payment: 100% Principal repayment if held to maturity.
Variable Return: Variable Return, if any, is linked to the performance of The Solactive Equal Weight Canada Banks 5% AR Index. (See Variable Return Calculation for more details).
Underlying Index: The Index aims to track the performance of the Solactive Equal Weight Canada Banks Index (the “Target Index”), subject to a reduction of 5.00% per annum applied on a daily basis at the time the Index is calculated (the “Adjusted Return Factor”). The Index was first launched on May 14, 2020.
The Target Index is an equally-weighted free-float market capitalization index of common stock of Canadian issuers primarily listed on the Toronto Stock Exchange that are classified by the Index Sponsor as “Major Banks” or “Regional Banks”. The Target Index is a gross total return index that reflects the applicable price changes of its constituent securities and any dividends and distributions paid in respect of such securities, without deduction of any withholding tax or other amounts to which an investor holding the constituent securities of the Target Index would typically be exposed. For the calculation of the level of the Target Index, any dividends or other distributions paid on the constituent securities of the Target Index are reinvested across all the constituent securities of the Target Index.
  • Solactive Equal Weight Canada Banks 5% AR Index

ISSUE DOCUMENTS
Information Statement: English | French
Client Summary / Information Statement: English | French

VARIABLE RETURN CALCULATION

The Variable Return, if any, will be calculated as follows:


i.             Iif the Index Return is greater than 0.00% on the Final Valuation Date, the Variable Return per Note will equal:

Variable Return = Principal Amount × Index Return × Participation Rate

ii.            if the Index Return is equal to or less than 0.00% on the Final Valuation Date, the Variable Return per Note will equal:

Variable Return = $0.00 per Note

The Index Return is the percentage increase or decrease in the Closing Index Level, measured from the Issue Date to the Valuation Date calculated as follows:

(Final Index Level - Initial Index Level)/Initial Index Level)

Where:

Upside Participation Rate: 72.00%

The aggregate gross total return performance of the constituent securities of the Target Index must be greater than 5.00% per annum for an Investor to receive a Variable Return on the Notes. The annual dividend yield on the Target Index as of November 6, 2020 was 5.22%,

If the Index Return is negative then no Variable Return will be paid.



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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