| Issuer: |
The Bank of Nova Scotia |
| Issue Date: |
October 31, 2006 |
| Maturity Date: |
October 31, 2011 – 5yr term |
| Principal Payment: |
100% Principal repayment if held to maturity |
| Variable Payment: |
Appreciation of Portfolio diversified by index class and geographic exposure at redemption
(See for Variable Return Calculation for more details) |
| Portfolio: |
The five Assets comprising the Portfolio are as follows:
- S&P/TSX 60 Index;
- Scotia Capital Universe Overall Bond Index (Total Return);
- Dow Jones EURO STOXX 50 Index;
- Hang Seng China Enterprises Index; and
- Goldman Sachs Commodity Index (GSCI) Excess Return.
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| Optimizing Structure: |
Each year, on the anniversary date of the issuance of the Notes, the asset with the best simple return measured form the issue date is “locked-in” for the purpose of determining the Variable Return, if any, payable at maturity. Once locked in, that asset is removed from the portfolio and no longer factors into the determination of Variable Return. Asset prices tend to illustrate cyclical movements and the indices are weakly correlated. The BNS Automatic Portfolio Allocation Deposit Notes, Series 1 take advantage of this by locking in the return of the best performing asset every year. |
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