Variable Return
Subject to the Bank's right to exercise the Bank Call Right, 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 calculated as follows:
Variable Return = Principal Amount × Price Return |
The Price Return will equal the average of the Share Returns (which can be positive or negative) of the Shares in the Portfolio. No Variable Return will be paid unless the Price Return is greater than zero. Variable Return, if any, paid on the Notes will not reflect any dividends or other distributions declared or paid on the Shares.
The Share Return of any particular Share in the Basket is the percentage increase or decrease in the Closing Price of that Share, measured from the Issue Date to the Calculation Date.
Performance Commentary
As at July 31, 2008 the performance of the BNS Callable Canadian Blue Chip Equity Deposit Notes, Series 1 on a NAV basis is -12.01% since inception. Many Canadian equities have underperformed on account of the recent global economic downturn and slowing U.S. economy. 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
12/12/2007 |
Current Price
10/10/2008 |
Price Performance |
| AGF Management Limited |
8.33% |
$30.53 |
$14.50 |
-52.51% |
| Calloway Real Estate Investment Trust |
8.33% |
$24.51 |
$14.70 |
-40.02% |
| Canadian National Railway Company |
8.33% |
$50.73 |
$45.67 |
-9.97% |
| Enbridge Inc. |
8.33% |
$38.59 |
$35.52 |
-7.96% |
| Manitoba Telecom Services Inc. |
8.33% |
$44.98 |
$39.78 |
-11.56% |
| Shaw Communications Inc. |
8.33% |
$25.03 |
$19.37 |
-22.61% |
| Shoppers Drug Mart Corporation |
8.33% |
$55.26 |
$46.30 |
-16.21% |
| Sun Life Financial Inc. |
8.33% |
$54.85 |
$27.55 |
-49.77% |
| Toronto-Dominion Bank |
8.33% |
$72.50 |
$52.50 |
-27.59% |
| TransAlta Corp |
8.33% |
$33.51 |
$22.00 |
-34.35% |
| TransCanada Corp. |
8.33% |
$39.83 |
$32.59 |
-18.18% |
| Yellow Pages Income Fund |
8.33% |
$13.60 |
$8.47 |
-37.72% |
| Overall Return |
|
|
|
-27.36% |
| 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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