TSX Symbol: CIX.UN
TORONTO, Sept. 10 /CNW/ - CI Investments Inc. today announced the launch
of The Bank of Nova Scotia - CI Performer(TM) Deposit Notes, Series 2, which
offer principal protection, monthly income and exposure to a diverse portfolio
of global dividend-paying companies through a notional investment in the CI
Global High Dividend Advantage Fund (the "Fund").
The deposit notes are available in two series. The Bank of Nova Scotia -
CI Performer Deposit Notes (Yield), Series 2, are designed to add income and
growth potential to registered portfolios, while The Bank of Nova Scotia - CI
Performer Deposit Notes (Return of Capital), Series 2, are suitable for
The returns of the deposit notes, if any, are linked to the performance
of the Fund, an income-oriented global equity fund from CI Investments. The
deposit notes are being launched with an initial 125% exposure to the Fund,
and a dynamic allocation strategy, utilizing leverage, that allows for up to
200% exposure to the Fund. The deposit notes also provide for the repayment of
all of investors' principal by maturity (in the case of the Return of Capital
series) and if held until maturity (in the case of the Yield series),
regardless of the performance of the Fund.
"The deposit notes offer income-seeking investors an attractive package,
including monthly distributions, tax efficiency, global diversification and
the benefits of leverage, while protecting their principal," said David R.
McBain, Senior Vice-President of CI Investments.
The portfolio of CI Global High Dividend Advantage Fund is managed by
Epoch Investment Partners Inc. of New York, led by Chief Investment Officer
William Priest. The Fund seeks to invest in a well-diversified mix of global
dividend-paying companies that enhance shareholder value through cash
dividends, stock buybacks and debt reduction. The Fund pays monthly
distributions with an annual target of $0.60 per unit, which is an annual
yield of 5.93% based on the fund's net asset value at July 31, 2007.
Both series of deposit notes make monthly payments equal to 75% of the
distributions on units held in the portfolio. The current indicative yield of
the deposit notes is 5.56% annually based on 125% exposure to the Fund, with a
potential yield of 8.9% based on 200% exposure. The Bank of Nova Scotia - CI
Performer Deposit Notes (Yield), Series 2, make monthly payments of interest
income, while The Bank of Nova Scotia - CI Performer Deposit Notes (Return of
Capital), Series 2, offer monthly partial principal repayments as a
tax-efficient return of capital.
The Bank of Nova Scotia - CI Performer Deposit Notes are 100% eligible
for registered plans and are available through financial advisors until
October 24, 2007. The issue price is $100 per deposit note, with a minimum
investment of $5,000. The complete terms of the offering are set out in the
information statements, which can be obtained by investors from their
advisors. Prospective investors should read the relevant Information Statement
in its entirety. Further information about the deposit notes can also be found
Scotiabank is one of North America's premier financial institutions and
Canada's most international bank. With almost 60,000 employees, Scotiabank
Group and its affiliates serve approximately 12 million customers in some 50
countries around the world. Scotiabank offers a diverse range of products and
services including personal, commercial, corporate and investment banking.
With $408 billion in assets (as at July 31, 2007), Scotiabank trades on the
Toronto (BNS) and New York Exchanges (BNS). For more information, please visit
CI Investments Inc. is a corporation controlled by CI Financial Income
Fund (TSX: CIX.UN), an independent, Canadian-owned wealth management firm with
approximately $95.4 billion in fee-earning assets as of August 31, 2007. CI
offers a broad range of investment products and services, including an
industry-leading selection of investment funds, and is on the Web at
The deposit notes have not been and will not be registered under the
United States Securities Act of 1933 (the "1933 Act"), as amended or any State
securities law and may not be offered for sale, sold or delivered, directly or
indirectly, in the United States, its territories or possessions to or for the
account or benefit of US persons within the meaning of Regulation S under the
1933 Act. In addition, the Notes may not be offered or sold to residents of
any jurisdiction or country of Europe.
For further information:
For further information: David R. McBain, Senior Vice-President, CI
Investments Inc., (416) 364-1145