| Optimizing Structure: |
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. |
