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
As at July 31, 2008 the performance of the BNS Automatic Portfolio Allocation™ Deposit Notes, Series 2 on a NAV basis is
-9.44% since inception. The option component of the Notes has fallen in value due to lower expected returns on the underlying indices. However, the Canadian yield curve did rally during July increasing the value of the zero coupon component of the Notes.
Basket Performance
| Basket Assets |
Weight |
Initial Price
06/29/2007 |
Current Price
10/06/2008 |
Price Performance |
| Dow Jones EURO STOXX 50® Index |
20.00% |
$4,489.77 |
$3,113.82 |
-30.65% |
| Hang Seng Index® |
20.00% |
$21,772.73 |
$17,682.40 |
-18.79% |
| Nikkei-225™ Index |
20.00% |
$18,138.36 |
$10,938.14 |
-39.70% |
| S&P Goldman Sachs Commodity Index (GSCI®) Excess Return |
20.00% |
$605.53 |
$689.21 |
13.82% |
| Scotia Capital Universe Overall Bond Index (Total Return) |
20.00% |
$628.90 |
$674.07 |
7.18% |
| Overall Return |
|
|
|
-13.63% |
| Indicative Variable Return * |
|
|
|
$0.00 |
* This value assumes all current prices remain unchanged
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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