| Optimizing Structure: |
Each 6 months, on the Calculation Date, the value of the best performing Asset remaining in the Portfolio is used to determine Realized Value. Each Realized Value is capped at a maximum of 50%. 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. If the price return of each Asset exceeds 50% over the term of the Notes, then the Notes will pay Additional Variable Return equal to 50% of the price return in excess of 50% of the worst performing Asset during that period.
Asset prices tend to illustrate cyclical movements and the indices are weakly correlated. The BNS Automatic Portfolio Allocation Deposit Notes, Series 3 take advantage of this by locking in the return of the best performing asset every 6 months. |
