The Bank of Nova Scotia – CI PerformerTM Deposit Notes (ROC), Series 1 are eight-year notes designed to add income and growth potential to any portfolio, while fully protecting the original investment. They provide:
1Based on historical distributions of the Fund as of February 28, 2007. Past performance of the Fund and historic distributions rates are not indicative of future performance or distributions of the Fund or the Notes, which are impossible to predict. There is no guarantee that the Fund will achieve a 6.25% annual yield or make any distributions, or that 200% leverage will be achieved on the Notes. Accordingly, the amount of interest paid for any month during the term of the Notes will likely vary and could be zero. There is no cap or maximum amount of interest payable on the Deposit Notes.
2Initially, Units will be purchased using an amount equal to the net proceeds of $95.00, together with a notional draw down of the Loan of $30.00, so that the total investment in Units is $125.00 per Note.
*There is no guarantee that the investment manager will be able to achieve a 6.25% annual yield or that the Fund will make any Distribution, in which case the Distribution on the Notes could be zero.
The information above must be read in conjunction with the attached Information Statement. This document is a summary only of certain aspects of the Notes and you are urged to read the attached Information Statement in its entirety for complete information related to the Notes, including the risk factors.
A prospective investor should decide to invest in the Notes only after carefully considering with his or her advisor as to whether the Notes are a suitable investment in light of the information set out in the Information Statement. None of the Bank including in its capacity as Calculation Agent or Scotia Capital Inc., including in its capacity as Selling Agent, makes any recommendation as to whether the Notes are a suitable investment for any person.
The Notes have certain investment characteristics that differ from conventional fixed-income investments in that they may not provide holders with any return or income stream prior to the Maturity Date, or a return at the Maturity Date that is calculated by reference to a fixed or floating rate of interest that is determinable prior to the Maturity Date. The return on the Notes (if any), unlike the return on many deposit liabilities of Canadian chartered banks, is uncertain in that the Notes could produce no return on the holder’s original investment. Therefore, the Notes are not suitable investments for a holder if the holder needs or expects to receive any return or a specific return on investment. The Notes are designed for holders with a long-term investment horizon who are prepared to hold the Notes to the Maturity Date and are prepared to assume risks with respect to a return tied to the performance of the portfolio. Prospective purchasers should take into account additional risk factors associated with this Offering. See “Risk Factors” in the attached Information Statement.
If a holder sells Notes prior to the Maturity Date, the holder may have to do so at a discount from the Principal Amount even if the performance of the portfolio has been positive and, as a result, the holder may suffer losses. In addition, an “Early Trading Charge” of up to 6.95% of the Principal Amount of a Note will apply if the holder sells a Note in the first three years following the issue date. The Notes are not redeemable by the holder. The Notes are generally not suitable for a holder who requires liquidity prior to the Maturity Date. A holder should consult his or her investment advisor concerning whether it would be more favourable to the holder in the circumstances at any time, to sell the Notes (assuming the availability of a secondary market) or to hold the Notes until the Maturity Date. A holder should also consult his or her tax advisor as to the income tax consequences arising from a sale prior the Maturity Date as compared to holding the Notes until the Maturity Date.
The Notes are issued by The Bank of Nova Scotia. The Notes are not deposits insured under the Canada Deposit Insurance Act or under any other deposit insurance regime. The price to be paid by each holder upon issuance of a Note has been determined by agreement between the Bank and Scotia Capital Inc. (the “Selling Agent”). The Selling Agent is a subsidiary of the Bank. As a result, the Bank is a related issuer of the Selling Agent under applicable Canadian securities legislation.
“Scotiabank”, “Scotia Capital”, and the flying “S” logo are registered trademarks of The Bank of Nova Scotia. “CI Investments”, “CI”, “Signature”, “Signature Funds”, “Signature Income & Growth Fund” and CI Investments design are trademarks of CI Investments Inc. “
The Notes have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the “1933 Act”) or under any State securities laws and may not be offered or sold, directly or indirectly, in the United States, its territories or possessions to or for the account or benefit of US persons. The Notes may not be offered or sold to residents of any country or jurisdiction in Europe. The Notes are being offered and sold in Canada only. This is intended for information purposes only and is not, and under no circumstances is to be construed as, an offering of the Notes described herein, or as investment advice. This flyer is intended to be read in conjunction with the Information Statement. No securities commission or similar authority in Canada has reviewed or in any way passed upon this flyer or the Information Statement or the merits of the Notes described herein or therein, and any representation to the contrary is an offence.