Scotiabank Mutual Funds

Transcription

1 Disclaimers Scotiabank Mutual Funds is the brand name under which the Scotiabank group of companies, including Scotiabank & Trust (Cayman) Ltd., Scotiabank Trinidad &Tobago Ltd. and Scotia DBG Fund Managers Limited markets and distributes mutual funds. Scotiabank & Trust (Cayman) Ltd., and Scotia DBG Investments Ltd. are separate corporate entities from, although wholly owned by, The Bank of Nova Scotia and distributes the Funds noted within this publication. Rates of return longer than one year are annualized. Figures do not reflect the effect of any applicable sales charges or redemption fees, which would lower these returns. Asset Management Service portfolio returns are the historical annual compounded total return assuming the investment strategy recommended by the asset allocation model used. In calculating portfolio return, weights for each of the included funds are assumed to be as indicated in the portfolio breakdown. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments and the use of an asset allocation service. Please read the prospectus for the Scotiabank Mutual Funds which are used to create each asset allocation model before selecting the Asset Management Service. Important information about Scotiabank Mutual Funds and the Scotia DBG Caribbean Income Fund are contained in their respective Funds prospectus. Prospectus copies are available from your local Investment Advisor, the Bank of Nova Scotia and affiliates' branches. Share values and investment returns for the Funds will fluctuate. Past performance is no guarantee of future performance and may not be repeated. Mutual Funds are not covered by your local Deposit Insurance Corporation or other government deposit insurer. Scotiabank Mutual Funds are not insured by, nor guaranteed by, The Bank of Nova Scotia or its affiliates. The minimum initial investment in the Scotia DBG Caribbean Income Fund is US$5,000 with subsequent investments of US$1,000. Please be advised that the Scotia DBG Caribbean Income Fund is NOT available for distribution in the Cayman Islands. Should you have any questions, please contact your local Scotiabank Mutual Funds Investment Advisor. Standard and Poor s, S&P and S&P 500 are trademarks of The McGraw-Hill Companies and have been licensed for use by The Bank of Nova Scotia and its subsidiary companies. * Trademark of The Bank of Nova Scotia, used under licence. Scotiabank Mutual Funds Quarterly Factsheet September 30, (10/10)

2 Scotiabank Money Market Fund Fund Description This Fund is designed to invest primarily in high quality U.S. dollar denominated debt securities, obligations and money market instruments to provide Shareholders with liqudity and preservation of capital. The Fund's assets are primarily invested in short-term securities and obligations issued by governments, corporations, banks and trust companies. These securities are not subject to withholding taxes. Investment objective: The objective of this Fund is to earn interest income and provide liquidity, with a high level of safety. Inception date: November Fund Advisor Scotia Asset Management manages over $39 billion in assets for mutual funds, institutional mandates, private clients and fee based accounts. Sales Charges There is no sales charge applicable to this Fund. Asset Class Cash and Cash Equivalents. Fund Performance Net Asset Value: US $ (as of Sep 30, ). The Fund's yield was 0.03% for the quarter compared to the benchmark's, 3-month US Treasury Bills, yield of 0.04%. 3 mth 6 mth 1 yr. 3 yr. 5 yr. 10 yr. 0.03% 0.05% 0.07% 1.13% 2.47% Since Inception (Nov. 99): 2.48% 2.22% Market Commentary The Scotiabank Money Market Fund returned 0.03% for the 3rd quarter of relative to a return of 0.04% for its benchmark, the Merrill Lynch 0-3 Month US T-bill Index. The Fund s yield was 0.01% as at September 31,. Economic uncertainty has resulted in an increase in demand and price for money market securities and a drop in yield for the fund. The fund has also been adversely affected by the drop in LIBOR rates from 50 bps in June to 29 bps at September 30. The average term to maturity of the fund has dropped by about 9 days, to 41 days, during the quarter. In the U.S., the federal funds target rate was 0.25% at the end of September and it is expected to remain at this level for an extended period in an effort to stimulate economic growth. The Bank of Canada has raised the overnight interest rate target three times in, from 0.25% in January to 1.00% as at the end of September, which reflects the continued strengthening of Canada s economy. Inflation in both countries remains low. Portfolio Breakdownˆ % Government Issues 36.3 Corporate Issues 63.7 Cash 0.0 Total Largest Holdings: Fund % Alberta Treasury Branches Jan 10/ Quebec Govt Sep 21/ Ontario Province Of 05/12 Var May 22/ Royal Bk of Canada BBA Libor USD 1 Mth Dec 09/ Export Development Corp Oct 15/ Pfizer Inc 03/11 Fltg Mar 15/ Bank Of Nova Scotia Bba Libor Usd 3 Month Mar 12/ KFW Medium Term NTS Book Mar 02/ Bank Of Montreal 08/12 Var Aug 14/ Canadian Wheat Board Sep 02/ Net Asset Values and performance figures are net of all Fund expenses. Average annual compound rate of return. ˆ As of August 31, 2 3

3 Scotiabank US Dollar Bond Fund Fund Description This Fund is designed to invest primarily in fixed income securities, issued or guaranteed by governments and companies, to achieve modest capital appreciation over the medium to long-term. The Fund's asets are primarily invested in US Dollar denominated securities and obligations issued or guaranteed by foreign governments and/or agencies, and corporations. Investment objective: The objective of this Fund is to earn income and provide some potential for capital gains. Inception date: January Fund Advisor Scotia Asset Management manages over $39 billion in assets for mutual funds, institutional mandates, private clients and fee based accounts. Sales Charges A front-end load may apply. Asset Class Income. Fund Performance Net Asset Value: US $ (as of Sep 30, ) The Fund returned 2.46% for the quarter, compared to Merrill Lynch Corporate & Government Bond Index, which returned 3.39%. 3 mth 6 mth 1 yr. 3 yr. 5 yr. 10 yr. 2.46% Since Inception (Jan. 93): 5.39% 6.56% 7.88% 7.34% 5.77% 5.91% Market Commentary The Scotiabank US Dollar Bond Fund returned 2.46% over the past 3 months relative to a return of 3.39% for its benchmark, the Merrill Lynch US Corporate & Government Master Total Return Index. The Fund remained invested in high quality fixed income securities in the 3rd quarter. The fund increased its exposure to Canadian and French government bonds and decreased its exposure to US government bonds. The fund s allocation to corporate bonds decreased by 1.6% to 38.3%. In the U.S., the federal funds target rate was 0.25% at the end of September and it is expected to remain at this level for an extended period in an effort to stimulate economic growth. The Bank of Canada has raised the overnight interest rate target three times in, from 0.25% in January to 1.00% as at the end of September, which reflects the continued strengthening of Canada s economy. Inflation in both countries remains low. Portfolio Breakdownˆ Fund % Index/ Benchmark% US Treasuries and Agencies Other Governments and Supranationals Corporates Total Largest Holdings: Fund % US Treasury BDS 4 1/2 Feb 15/ US Treasury N/B 05/19 Fixed May 15/ US Treasury NTS 03/11 Fixed.875 Mar 31/ Kreditanstalt fur Wiederaufbau Jul 16/ Her Majesty Rgt Canada Nov 12/ Intl BK for Recon + DEV Jan 19/ Nova Scotia Prov CDA DEB Jul 01/ US Treasury BDS 6 1/4 Aug 15/ Inter Amern Dev Bk Global Tranche Mar 15/ Export Development Canada Sep 24/ Net Asset Values and performance figures are net of all Fund expenses. Average annual compound rate of return. ˆ As of August 31, 4 5

4 Scotiabank Global Growth Fund Fund Description This Fund is designed to invest primarily in the equity securities of companies located around the world to acheive capital appreciation over the long-term. The Fund's asset are are primarily invested in larger companies and are diversified by sector, industry, country and company.. Inception date: August Fund Advisor Davis Advisors is an independent money management firm that manages approximately $75 billion in assets on behalf of individual and institutional clients worldwide. Davis Advisors' investment philosophy of buying durable well-managed companies at attractive prices and holding them for the long term has proven highly successful for more than 60 years. The Davis family and employees of Davis Advisors have approximately $2 billion invested in mutual funds that the firm manages. Sales Charges A front-end load may apply. Asset Class Growth. Fund Performance Net Asset Value: US $ (as of Sep 30, ). The Fund returned 7.16% for the quarter, compared to MSCI All Country World Index, which returned 13.76%. 3 mth 6 mth 1 yr. 3 yr % 5 yr. 10 yr % -3.96% Since Inception (Aug. 94): 3.65% Net Asset Values and performance figures are net of all Fund expenses. Average annual compound rate of return % -1.92% 7.16% Market Commentary The Scotiabank Global Growth Fund returned 7.16% over the past 3 months relative to a return of 13.76% for its benchmark, the MSCI All Country World Index. The Fund lagged its benchmark primarily due to negative security selection. Key detractors from fund performance included companies such as Idexx Labs (US), China Citic Bank (China) and CN Insure (China). Key contributors to fund performance included companies such as Hang Lung (China), Google (US) and Potash (Canada). The fund increased its exposure to the health care sector by 3.4%, to 19.9%, over the past month compared to 8.6% for the benchmark. Global equities rebounded in the 3rd quarter with positive returns in all major markets. China overtook Japan as the 2nd largest economy in the world in the 2nd quarter with a GDP of US$1.34T. The global real GDP growth is forecasted at 4.4% for and is driven primarily by emerging economies such as China at 10.0%, India at 8.3%, Brazil at 5.8% and Mexico at 4.8%. Real GDP growth in the US, Japan and Europe has been adversely affected by the effects of high levels of sovereign debt. Portfolio Breakdownˆ Largest Holdings: Google Inc, Kuehne + Nagel Intl, Hang Lung Group Ltd, Coca Cola Co, Sino Forest Corporation United States 28.4% Belgium 2.0% Netherlands 4.1% Brazil 2.2% Argentina 2.6% France 3.2% Switzerland 18.3% Sectors: Fund % Index/ Benchmark % Health Care Financials Consumer Staples Industrials Materials Information Technology Telecommunication Services Consumer Discretionary Energy Utilities Total ˆ As of August 31, 7 Ireland 0.7% Hong Kong 4.1% Germany 1.0% United Kingdom 3.8% China 16.3% Japan 1.5% Canada 7.0% Mexico 4.9%

5 Scotiabank US Growth Fund Fund Description This Fund invests invests primarily in the equity securities of U.S. companies to achieve capital appreciation over the long-term. The Fund's assets are are primarily invested in larger companies and are diversified by sector, industry and company. Investment objective: The objective of this Fund is long-term capital growth. Inception date: November Fund Advisor Davis Advisors is an independent money management firm that manages approximately $75 billion in assets on behalf of individual and institutional clients worldwide. Davis Advisors' investment philosophy of buying durable well-managed companies at attractive prices and holding them for the long term has proven highly successful for more than 60 years. The Davis family and employees of Davis Advisors have approximately $2 billion invested in mutual funds that the firm manages. Sales Charges A front-end load may apply. Asset Class Growth. Fund Performance Net Asset Value: US $ (as of Sep 30, ). The Fund returned 7.21% for the quarter compared to the S&P 500 Index, which returned 11.29%. 3 mth 6 mth 1 yr. 3 yr. 5 yr. 10 yr % % -2.52% -3.41% 7.21% Since Inception (Nov. 99): -3.42% 5.79% Net Asset Values and performance figures are net of all Fund expenses. Market Commentary The Scotiabank U.S. Growth Fund returned 7.21% over the past 3 months relative to a return of 11.29% for its benchmark, the S&P 500 TR Index. The Fund underperformed the benchmark in the 3rd quarter primarily due to negative sector selection of 1.2% in information technology, 1.1% in industrials and 0.7% in telecommunication services. This was offset by positive sector selection of 0.7% in consumer staples and financials which contributed to the fund s performance. The fund increased its sector exposure to consumer staples by 7.2% and decreased its sector exposure to consumer discretionary by 6.5% over the past month. U.S. equities rallied in the 3rd quarter as corporate earnings rose nearly 40% since April with gains being recorded in all 10 industry sectors. US Real GDP was 1.7% in Q2, down from 3.7% in Q1, as imports increased and inventories dropped. The federal funds rate was 0.25% at the end of September and it is expected to remain at this level for an extended period. Inflation was 1.1% over the 1 year period as at the end of August. Portfolio Breakdownˆ Fund % 10 Largest Holdings: Costco Wholesale Corp: A company offering branded and private label products in warehouse facilities. 6.3 American Express Co: A bank holding company offering credit payment card products and travel-related services 5.9 Wells Fargo + Co: A diversified financial services company 5.3 EOG Resources Inc: One of the largest independent oil and natural gas companies in the United States. 5.0 Occidental Petroleum Corp: A company with operations in oil and gas, chemical, midstream and other segments. 4.4 CVS Caremark Corp: A pharmacy services company in the United States. 4.2 Loews Corp: One of the largest diversified holding companies in the United States 4.0 Devon Energy Corporation: An independent energy company concentrated in the United States and Canada. 3.8 Merck Co Inc: A global heath care company providing human health pharmaceutical and vaccine products. 3.5 Progressive Corp: An insurance holding company providing insurance and related services. 3.4 SECTORS: Financials Fund % 31.1 Index/ Benchmark % 15.9 Consumer Staples Energy Health Care Information Technology Consumer Discretionary Materials Industrials Telecommunication Services Utilities Total Average annual compound rate of return. ˆ As of August 31, 8 9

6 Scotiabank Canadian Growth Fund Fund Description This Fund invests primarily in the equity securities of of Canadian companies to achieve capital appreciation over the long-term. The Fund's assets are primarily invested in larger companies and are diversified by sector, industry and company. Investment objective: The objective of this Fund is long-term capital growth. Inception date: August Fund Advisor Scotia Asset Management manages over $39 billion in assets for mutual funds, institutional mandates, private clients and fee based accounts. Sales Charges A front-end load may apply. Asset Class Growth. Fund Performance Net Asset Value: US $ (as of Sep 30, ). The Fund returned 11.60% for the quarter compared to the S&P TSX Index, which returned 13.56%. 3 mth 6 mth -1.71% 1 yr. 3 yr. 5 yr % 4.84% 10 yr. 1.78% Since Inception (Aug. 94): 6.66% 8.30% Net Asset Values and performance figures are net of all Fund expenses % Market Commentary The Scotiabank Canadian Growth Fund returned 11.60% over the past 3 months relative to a return of 13.56% for its benchmark, the S&P/TSX Composite Index. The Fund underperformed the benchmark in the 3rd quarter primarily due to negative sector selection as it had an underweight position, relative to the benchmark, of 1.8% in energy, 1.9% in financials and 1.9% in telecommunication services. A 0.9% overweight position, relative to the benchmark, in materials and consumer staples contributed to the fund s performance. The fund increased its sector exposure to energy by 5.4% and to materials by 1.9%, and decreased its exposure to financials by 5.7% over the past month. The Canadian equity market performed well in the 3rd quarter and has outperformed many other global developed markets in the first 9 months of. Real GDP fell 0.1% in July, the first monthly decline since August. The Bank of Canada s key interest rate target increased to 1.00% in September from 0.75% in July. Core inflation was 1.6% at the end of the 3rd quarter and remained below the 2% target. Portfolio Breakdownˆ Fund % 10 Largest Holdings: TD Bank: A core Canadian bank that has a large presence in the United States 6.6 Royal Bank: Canada s largest listed company 5.9 Barrick Corp: The world s largest gold producer, with operations and projects in 10 countries 5.2 Potash Corp: The world s leading producer of potash, with approx. 22% of world capacity 4.7 Suncor: An oil and gas company with a dominant presence in the Alberta Oil Sands 4.2 Canadian Natural Resources: A large-cap independent producer of oil and natural gas 4.0 Goldcorp Inc: Engaged in the acquisition, exploration, development and operation of precious metal properties 4.0 Can Imp Bk of Commerce: A diversified financial institution 3.2 Teck Resources: A diversified resource company committed to mining and mineral development 3.0 Research in Motion: A world leader in mobile messaging solutions 3.0 Fund % Index/ SECTORS: Benchmark % Energy Financials Materials Industrials Consumer Discretionary Consumer Staples Telecommunication Services Information Technology Utilities Health Care Total Average annual compound rate of return. ˆ As of August 31, 10 11

7 Scotia DBG Caribbean Income Fund Fund Description This fund is designed as a mid-term US Dollar denominated bond fund that invests primarily in US Dollar denominated debt instruments issued by countries and corporations from the Caribbean region. Investment objective: The objective of this Fund is to provide a regular stream of income and modest capital gains. Inception date: March 29th, Fund Advisor Scotia DBG Fund Managers is a subsidiary of Scotia DBG Investments Limited. Scotia DBG Investments Limited is a Jamaican based professional investment and portfolio management firm which actively manages private and corporate investment portfolios, unit trusts, pension funds and other segregated funds. Scotia DBG Investments Limited has over US$ 468 million of clients' funds under management. Sales Charges A front-end load may apply. Asset Class Income. Income Distribution Quarterly. Fund Performance Net Asset Value: US $ (as of Sep 30, ). The Fund's return was 3.04% for the quarter. Market Commentary Shareholders to the Fund enjoyed a total return of 3.04% for the quarter. During the period under review, significant amount of inflows went into emerging market bonds, causing already narrow spreads to tighten further and providing less credibility to the rationale of investing in these bonds given their relatively low risk-reward return. Nonetheless, inflows are anticipated to remain robust as we near the end of the year with investors remaining bearish on developed market bonds and the macro economic fundamentals for emerging market sovereigns proving to be healthier relative to previous periods. During the quarter, two Caribbean sovereigns came to the market and provided additional investment opportunities for the CIF, including the Bermudan government which for the first time pursued long-term financing from the international market. Government of Jamaica (GOJ) Global bond market, whilst recorded impressive upticks in bond prices for most part of the quarter, rescinded the gains and closed the quarter at lower levels for most of the issues. This placed a downward pressure on the market value of the CIF s GOJ holdings. On the other hand, a number of sovereigns in Latin American market received improved credit reviews on their economic outlook which had a positive impact on CIF s exposure to that market. In the upcoming months, the portfolio managers will continue to diversify the CIF in an attempt to strike the delicate balance between generating a steady income stream while pursuing attractive capital gain. Portfolio Breakdownˆ Fund % Government of Jamaica (GOJ) GOJ Guaranteed 8.00 Corporates 9.77 Cash & Money Market Other Governments Total Other Governments 3 mth 6 mth 1 yr. 3.04% 4.74% 8.74% Cash & Money Market Corporates Government of Jamaica GOJ Guaranteed Since Inception (Mar. 06): 17.55% Dividend Yield: Distribution Yield last 12 months: 5.25% Net Asset Values and performance figures are net of all Fund expenses. 5 Largest Holdings: Govt of Jamaica 10 5/8% Jun 20/17 Fund % 9.38 Petrotrin 9.75% Aug 14/ Scotia DBG GOJ Repo Feb 23/ Govt of Jamaica 8% Jun 24/ Govt. of TT 9.75% Jul 1/ Average annual compound rate of return. ˆ As of August 31, 12 13

8 Scotiabank Preservation of Capital Portfolio Portfolio Description Preservation of Capital Your primary objective is to protect your principal. You can only accept minimal risk that your investments might decline in value even in the short term. You are willing to accept potentially the lowest return in exchange for the highest security. Portfolio Breakdown Portfolio Commentary The Preservation of Capital Portfolio provided stable performance throughout the third quarter of. Much of this performance can be attributed to the strong performance of the large US Dollar Bond Fund weighting. Stabilizing yields on money market instruments throughout the quarter also provided additional strength to the overall portfolio. Asset Management Service 1 Mo 3 Mo 6 Mo 1 Yr. 2 Yr % Year to date return: 6.59% Income 80% Scotiabank US Dollar Bond Fund Cash Equivalent 20% Scotiabank Money Market Fund 2.02% 5.35% 6.17% 6.29% Scotiabank Conservative Income Portfolio Portfolio Description Conservative Income Your primary objective is to earn a modest income while protecting your principal. You are willing to accept modest return in exchange for greater security. You accept that the value of your portfolio will fluctuate modestly from time to time. Portfolio Breakdown Income 70% Scotiabank US Dollar Bond Fund Growth 10% Scotiabank US Growth Fund Scotiabank Global Growth Fund Scotiabank Canadian Growth Fund Cash Equivalent 20% Scotiabank Money Market Fund Portfolio Commentary The Conservative Income Portfolio continued its course of positive performance in the third quarter of. Its largest weighting, the US Dollar Bond Fund performed well as US fixed income markets continued to benefit from equity market uncertainty. The yield on the Scotiabank Money Market Fund continued to stabilize over the quarter which has been an added support vehicle for this portfolio. The small 10% equity component of the portfolio has strengthened as equity markets stabilize. Asset Management Service 1 Mo 0.61% 3 Mo 2.57% 6 Mo 4.12% 1 Yr. 5.64% 2 Yr. 6.12% 12,000 10,000 Since inception (Jan. 08): 4.64% Year to date return: 5.60% Growth of US$ 10,000: Since inception (Jan. 08): 3.94% $11, Growth of US$ 10,000: 12,000 10,000 $11, , Fund performance has been updated to reflect balances triggered through the Asset Managment Service (AMS). Performance figures are net of all fund expenses and annual AMS fee. Fund performance has been updated to reflect balances triggered through the Asset Managment Service (AMS). Performance figures are net of all fund expenses and annual AMS fee. Average annual compound rate of return Average annual compound rate of return ,

9 Scotiabank Income & Conservative Growth Portfolio Portfolio Description Income & Conservative Growth Your primary objective is a high level of income with some growth potential. You accept that the value of your portfolio will fluctuate modestly from time to time. Portfolio Breakdown Growth 30% Scotiabank US Growth Fund Scotiabank Global Growth Fund Scotiabank Canadian Growth Fund Cash Equivalent 15% Scotiabank Money Market Fund Income 55% Scotiabank US Dollar Bond Fund Portfolio Commentary The Income & Conservative Growth Portfolio in the third quarter of has recovered well from the weaker performance it experienced in the second quarter. Much of this turnaround can be attributed to the large 55% weighting in the US Dollar Bond Fund which continues to anchor this portfolio from both a stability and performance perspective. In addition improving equity markets has benefitted all three underlying equity funds within the 30% equity weighting. Asset Management Service 1 Mo 2.07% 3 Mo 6 Mo 2.13% 1 Yr. 2 Yr. 3.85% Year to date return: 4.18% Since inception (Jan. 08): 2.47% Growth of US$ 10,000: 12,000 10, % 5.79 $10, Scotiabank Balanced Income & Growth Portfolio Portfolio Description Balanced Income & Growth Your primary objective is growth with some income and exposure to the three major asset classes. You accept that the value of your portfolio will fluctuate moderately from time to time. Portfolio Breakdown Growth 45% Scotiabank US Growth Fund Scotiabank Global Growth Fund Scotiabank Canadian Growth Fund Cash Equivalent 15% Scotiabank Money Market Fund Income 40% Scotiabank US Dollar Bond Fund Portfolio Commentary The Balanced Income & Growth Portfolio performed positively over the third quarter of and recovered well from the previous challenges it experienced in the previous quarter. This strong improvement was the result of strong equity market performance for the months of July and September coupled with positive contribution from the 40% US Dollar Bond Fund weighting. Asset Management Service 12,000 10,000 1 Mo 3 Mo 6 Mo 1 Yr. 2 Yr. 0.43% 3.22% Year to date return: 2.83% Since inception (Jan. 08): 0.85% Growth of US$ 10,000: 4.76% 4.45% 4.79% $10, , Fund performance has been updated to reflect balances triggered through the Asset Managment Service (AMS). Performance figures are net of all fund expenses and annual AMS fee. Average annual compound rate of return Average annual compound rate of return , Fund performance has been updated to reflect balances triggered through the Asset Managment Service (AMS). Performance figures are net of all fund expenses and annual AMS fee.

10 Scotiabank Moderate Growth Portfolio Portfolio Description Moderate Growth Your primary objective is to achieve a high level of growth with some income potential. You accept that the total value of your portfolio will fluctuate considerably from time to time. Portfolio Breakdown Growth 55% Scotiabank US Growth Fund Scotiabank Global Growth Fund Scotiabank Canadian Growth Fund Cash Equivalent 10% Scotiabank Money Market Fund Income 35% Scotiabank US Dollar Bond Fund Portfolio Commentary Equity markets in the third quarter marked dramatic improvement from the previous quarter as investor confidence slowly starts to rebuild again. The underlying equity funds of the Moderate Growth Portfolio benefitted from this shift in momentum as the 55% equity weighting was the principal catalyst in strong performance in the quarter. Despite equity market volatility in the month of August, overall performance for the quarter has been strong. Asset Management Service 1 Mo 3 Mo 6 Mo -0.92% 1 Yr. 2 Yr. Growth of US$ 10,000: 12,000 10,000 Year to date return: 1.89% Since inception (Jan. 08): -1.02% 4.39% 4.15% 3.49% 5.82% $9, Scotiabank Aggressive Growth Portfolio Portfolio Description Aggressive Growth Your primary objective is to achieve the maximum potential growth over the long-term. You accept that the total value of your portfolio will fluctuate extremely from time to time. Portfolio Breakdown Growth 80% Scotiabank US Growth Fund Scotiabank Global Growth Fund Scotiabank Canadian Growth Fund Cash Equivalent 5% Scotiabank Money Market Fund Income 15% Scotiabank US Dollar Bond Fund Portfolio Commentary The Aggressive Growth Portfolio had strong returns in the third quarter of. The high single-digit return for the last three months was a direct result of increasing equity markets. All three underlying equity funds performed well with the Scotiabank Canadian Growth Fund leading the charge as the best performer over the quarter. Asset Management Service 1 Mo 3 Mo 6 Mo -2.79% 1 Yr. 2Yr. Growth of US$ 10,000: 12,000 10,000 8, % 1.79% Year to date return: 0.52% Since inception (Jan. 08): -3.41% 6.03% 7.24% $9, ,000 6, Fund performance has been updated to reflect balances triggered through the Asset Managment Service (AMS). Performance figures are net of all fund expenses and annual AMS fee. 6, Fund performance has been updated to reflect balances triggered through the Asset Managment Service (AMS). Performance figures are net of all fund expenses and annual AMS fee. Average annual compound rate of return Average annual compound rate of return

11 50% 40% 30% 20% 10% 0-10% -20% -30% -40% -50% 30% 25% 20% 15% 10% 5% 0-5% -10% -15% -20% -25% -30% FUND CALENDAR RETURNS Money Market Fund US Growth Fund Canadian Growth Fund US Dollar Bond Fund Global Growth Fund PORTFOLIO CALENDAR RETURNS Preservation of Capital Conservative Income Income & Conservative Growth Balanced Income & Growth Moderate Growth Aggressive Growth 20 21

12 General Information Dealing Details: The Scotiabank Mutual Funds that are distributed trade daily at Net Asset Value (each respective trading day being the Dealing Day). A duly signed Purchase Confirmation with cleared funds must be received by the designated cut-off time on the relevant Dealing Day. Cleared funds received prior to daily valuation will be held without interest until the next Dealing Day. Initial minimum investment is US $5,000 in any Asset Management Service portfolio, with sub sequent investments of US $100. Initial minimum investment is US$1,000 per Fund with subsequent investments of US $100. Net Asset Value information of the Scotiabank Mutual Funds can be found on Bloomberg, in the equities section, and on the Cayman Islands Stock Exchange (CSX), website under Scotiabank. This report does not constitute an invitation to purchase or sell shares of the Funds. Information also available directly from: Scotiabank & Trust (Cayman) Ltd. 6 Cardinal Ave, Box 689 Grand Cayman, KY (345)