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 calculated as follows:
Variable Return = Principal Amount × Price Return × 150% Participation Rate |
The Price Return will equal the average of the Commodity Returns (which can be positive or negative) of the Commodities in the Basket. No Variable Return will be paid unless the Price Return is greater than zero.
The Commodity Return of any particular Commodity in the Basket is the percentage increase or decrease in the Reference Price of that Commodity, measured from the Issue Date to the second Business Exchange Day prior to the Maturity Date.
Performance Commentary
As at April 13, 2010 the performance of the BNS Commodity Linked Deposit Notes, Series 2 on a NAV basis is 44.55% since inception. Performance of the Commodities within the Note is mixed, with gains seen in Crude Oil, Gold, and Copper. However, both Natural Gas and Aluminum are below initial prices. 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
| Basket Assets |
Weight |
Initial Price
03/21/2006 |
Current Price
07/30/2010 |
Price Performance |
| Aluminum |
20.00% |
$2,491.00 |
$2,083.00
|
-16.38% |
| Copper |
20.00% |
$5,258.00 |
$7,206.00
|
37.05% |
| Crude Oil |
20.00% |
$60.57 |
$78.36
|
29.37% |
| Gold |
20.00% |
$547.50 |
$1,162.50
|
112.33% |
| Natural Gas |
20.00% |
$6.87 |
$4.83
|
-29.69% |
| Overall Return |
|
|
|
26.54% |
| Indicative Variable Return * |
|
|
|
$39.80 |
*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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