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 × Basket Return |
The Basket Return will equal the sum of the Weighted 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 Weighted Asset Return of any particular Asset in the Basket is the percentage increase or decrease in the Reference Price of that Asset, measured from the Issue Date to the Calculation Date, multiplied by its Weighting.
Performance Commentary
As at April 13, 2010 the performance of the BNS Callable Saskatchewan Focused Notes, Series 1 on a NAV basis is -2.24% since inception. Performance of the Assets underlying the Note has been mixed, with the basket down 17.34% on average. 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
08/24/2007 |
Current Price
09/10/2010 |
Price Performance |
| Cameco |
10.00% |
$41.76 |
$26.53
|
-36.47% |
| Gasoline |
20.00% |
$198.14 |
$193.54
|
-2.32% |
| Natural Gas |
20.00% |
$5.52 |
$3.77
|
-31.70% |
| Potash |
10.00% |
$91.97 |
$154.67
|
68.17% |
| S&P GSCI® Agriculture Index Exccess Return |
20.00% |
$68.55 |
$63.12
|
-7.92% |
| S&P GSCI™ Livestock Index Excess Return |
20.00% |
$385.38 |
$214.59
|
-44.32% |
| Overall Return |
|
|
|
-14.08% |
| 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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