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 × Basket Return × 140% Participation Rate |
The Basket Return will equal the average of the Asset Returns (which can be positive or negative) of the Assets in the Basket. No Variable Return will be paid unless the Basket Return is greater than zero.
The Asset Return of any particular Asset in the Basket is the percentage increase or decrease in the Reference Price of the relevant Asset, measured from the Issue Date to the second Business Exchange Day prior to the Maturity Date.
Performance Commentary
As at July 31, 2008 the performance of the U.S. Dollar Commodity Linked Notes, Series 2 on a NAV basis is 3.56% since inception. Commodities continue to perform well, with the most gains seen in crude oil, distillates, and petroleum-derived products such as gasoline. In addition, the U.S. yield curve did rally during July increasing the value of the zero coupon component of the Notes.
Basket Performance
| Basket Assets |
Weight |
Initial Price
07/31/2007 |
Current Price
10/06/2008 |
Price Performance |
| Aluminum |
16.67% |
$2,700.50 |
$2,250.00 |
-16.68% |
| Gasoline |
16.67% |
$214.08 |
$222.83 |
4.09% |
| Nickel |
16.67% |
$31,550.00 |
$15,125.00 |
-52.06% |
| S&P GSCI® Agriculture Index Exccess Return |
16.67% |
$65.67 |
$63.79 |
-2.86% |
| S&P GSCI® Precious Metals Index Exccess Return |
16.67% |
$107.74 |
$122.61 |
13.80% |
| Zinc |
16.67% |
$3,590.50 |
$1,563.00 |
-56.47% |
| Overall Return |
|
|
|
-18.37% |
| 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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