Variable Return
The Notes will not bear any interest during the term of the Notes, but will have a Variable Return, if any, per Note at maturity. The Variable Return will be the amount, if any, by which the Final Portfolio Value per Note Exceeds the Principal Amount. The Portfolio Value will be an amount calculated as follows:
Portfolio Value = Previous Portfolio Value x (200% x Daily Fund Return – 100% x Loan charge)
|
| Where: |
|
|
| |
|
|
| Previous Portfolio Value |
= |
The Portfolio Value determined by the Calculation Agent on the immediately preceding Calculation Date. |
| Daily Fund Return |
= |
The number (which may be positive or negative) equal to: (i) 1; plus (ii) the percentage change in the value of a notional $100 investment in Units from the immediately preceding Calculation Date determined by the Calculation Agent, acting reasonably. For this purpose, the percentage change in the value of the Units will be reduced by the Portfolio Fee, calculated and deducted daily. |
| Loan Charge |
= |
An amount equal to: (i) 1; plus (ii) the Loan Rate multiplied by the actual number of days elapsed since the immediately preceding Calculation Date divided by 365. |
| Loan Rate |
= |
On any Calculation Date, means the Bankers’ Acceptance Rate for such Calculation Date plus 0.25% per annum. |
Performance Commentary
As at April 13, 2010 the performance of the BNS CI 2X Deposit Notes, Series 2 on a NAV basis is 15.99% since inception. The performance of the Fund has improved in 2009 and into 2010, passing the original levels at inception and currently at 14.73%. However, the Canadian yield curve has sold off this year decreasing the value of the zero coupon component of the Notes and causing a reduction in the NAV of the note.
Basket Performance
| Fund Units |
Weight |
Initial Unit NAV |
Month End Unit NAV |
Change % |
| CI Signature Income & Growth Fund |
100.00% |
$4.14 |
$4.59
|
10.87% |
| Overall Return |
|
|
|
10.87% |
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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