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 Basket. 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 April 13, 2010 the performance of the BNS Callable Global Infrastructure Deposit Notes, Series 1 on a NAV basis is -13.56% since inception. While the performance of the Equities underlying the Note has been better in 2009 and 2010, the basket is still down 17.98% on average since inception. In addition, 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
02/11/2008 |
Current Price
09/10/2010 |
Price Performance |
| Abertis Infraestructuras, S.A. |
5.56% |
$18.43 |
$13.69
|
-25.72% |
| CLP Holdings Ltd. |
5.56% |
$60.95 |
$59.40
|
-2.54% |
| Canadian National Railway Company |
5.56% |
$51.56 |
$65.24
|
26.53% |
| Centrica PLC |
5.56% |
$322.00 |
$346.10
|
7.48% |
| Dominion Resources Inc. |
5.56% |
$41.95 |
$43.94
|
4.74% |
| Duke Energy Corp. |
5.56% |
$18.50 |
$17.54
|
-5.19% |
| E.ON AG |
5.56% |
$127.55 |
$23.32
|
-81.72% |
| El Paso Corp. |
5.56% |
$16.69 |
$12.10
|
-27.50% |
| Enbridge Inc. |
5.56% |
$40.46 |
$52.88
|
30.70% |
| Enel SpA |
5.56% |
$7.38 |
$3.96
|
-46.34% |
| Macquarie Infrastructure Group |
5.56% |
$2.94 |
$1.48
|
-49.66% |
| National Grid PLC |
5.56% |
$769.00 |
$559.50
|
-27.24% |
| RWE AG |
5.56% |
$85.19 |
$53.85
|
-36.79% |
| Severn Trent PLC |
5.56% |
$1,429.00 |
$1,385.00
|
-3.08% |
| Southern Company |
5.56% |
$35.68 |
$37.13
|
4.06% |
| Suez SA |
5.56% |
$40.92 |
$26.94
|
-34.16% |
| TransCanada Corp. |
5.56% |
$39.17 |
$38.02
|
-2.94% |
| United Utilities PLC |
5.56% |
$688.00 |
$596.00
|
-13.37% |
| Overall Return |
|
|
|
-15.72% |
| 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.
THE CONTENTS OF THIS SITE ARE DIRECTED AT, AND ARE FOR USE BY, RESIDENTS OF CANADA ONLY AND ARE NOT DIRECTED TO OR INTENDED FOR USE BY RESIDENTS OF ANY OTHER COUNTRY OR JURISDICTION. THE CONTENTS OF THIS SITE DO NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY, DIRECTLY OR INDIRECTLY, ANY OF THE NOTES REFERRED TO HEREIN IN ANY JURISDICTION OUTSIDE OF CANADA. THE CONTENTS OF THIS SITE ARE NOT TO BE DOWNLOADED, DISSEMINATED, USED OR RELIED UPON BY PERSONS RESIDENT IN ANY NON- CANADIAN JURISDICTION. NO SECURITIES COMMISSION OR SIMILAR AUTHORITY IN CANADA OR ANY OTHER JURISDICTION HAS IN ANY WAY PASSED ON THE MERITS OF ANY OF THE NOTES OR THE ADEQUACY OF THE DISCLOSURE CONTAINED IN ANY OF THE DOCUMENTS ON THIS SITE. |
