simplified prospectus - scotiabank · simplified prospectus may 16, ... for english, innova maximum...

12DEC201417494427

ScotiaFunds� 2017Simplified ProspectusMay 16, 2017

Scotia Conservative Government Bond Capital Yield Class (Series A shares)

Scotia Fixed Income Blend Class (Series A shares)

Scotia Canadian Dividend Class (Series A shares)

Scotia Canadian Equity Blend Class (Series A shares)

Scotia U.S. Equity Blend Class (Series A shares)

Scotia Global Dividend Class (Series A shares)

Scotia International Equity Blend Class (Series A shares)

Scotia INNOVA Income Portfolio Class (Series A shares)

Scotia INNOVA Balanced Income Portfolio Class (Series A and Series T shares)

Scotia INNOVA Balanced Growth Portfolio Class (Series A and Series T shares)

Scotia INNOVA Growth Portfolio Class (Series A and Series T shares)

Scotia INNOVA Maximum Growth Portfolio Class (Series A and Series T shares)

Scotia Partners Balanced Income Portfolio Class (Series A and T shares)

Scotia Partners Balanced Growth Portfolio Class (Series A and T shares)

Scotia Partners Growth Portfolio Class (Series A and T shares)

Scotia Partners Maximum Growth Portfolio Class (Series A and T shares)

Each of the foregoing Funds and Portfolios are classes of Scotia CorporateClass Inc.

No securities regulatory authority has expressed an opinion about thesesecurities. It is an offence to claim otherwise.

The Funds and the securities they offer under this simplified prospectusare not registered with the U.S. Securities and Exchange Commission.Securities of the Funds may be offered and sold in the United States onlyin reliance on exemptions from registration.

Table of Contents

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . iFund specific information . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1Scotia Conservative Government Bond Capital Yield

Class . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4Scotia Fixed Income Blend Class . . . . . . . . . . . . . . . . . . . . . . . . 6Scotia Canadian Dividend Class . . . . . . . . . . . . . . . . . . . . . . . . . 8Scotia Canadian Equity Blend Class . . . . . . . . . . . . . . . . . . . . . 10Scotia U.S. Equity Blend Class . . . . . . . . . . . . . . . . . . . . . . . . . . . 12Scotia Global Dividend Class . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14Scotia International Equity Blend Class . . . . . . . . . . . . . . . . . 16Scotia INNOVA Income Portfolio Class . . . . . . . . . . . . . . . . . . 18Scotia INNOVA Balanced Income Portfolio Class . . . . . . . 21Scotia INNOVA Balanced Growth Portfolio Class . . . . . . . 24Scotia INNOVA Growth Portfolio Class . . . . . . . . . . . . . . . . . 27Scotia INNOVA Maximum Growth Portfolio Class . . . . . . 30Scotia Partners Balanced Income Portfolio Class . . . . . . . 33Scotia Partners Balanced Growth Portfolio Class . . . . . . . 36Scotia Partners Growth Portfolio Class . . . . . . . . . . . . . . . . . 39Scotia Partners Maximum Growth Portfolio Class . . . . . . 42

What is a mutual fund and what are the risks ofinvesting in a mutual fund? . . . . . . . . . . . . . . . . . . . . . . . 45

Organization and management of the funds . . . . . . 53Purchases, switches and redemptions . . . . . . . . . . . . . . 55Optional services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59Fees and expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60Impact of sales charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62Dealer compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63Income tax considerations for investors . . . . . . . . . . . 63What are your legal rights? . . . . . . . . . . . . . . . . . . . . . . . . . . 65

Introduction

In this document, unless the context requires otherwise: ScotiaFunds refers to all of our mutual funds and the seriesthereof that are offered under separate simplified prospec-

Board means the board of directors of the Corporation;tuses under the ScotiaFunds� brand and includes the Scotiamutual funds offered under this simplified prospectus;Corporation means Scotia Corporate Class Inc.;

securities of a Fund refers to units or shares of a Fund, asCorporate Funds refers to the ScotiaFunds that are classesapplicable;of the Corporation and Corporate Fund refers to any

of them;securityholder refers to shareholders of a Corporate Fund orto unitholders of a Trust Fund or an LP Fund, as applicable;Fund or Funds means a Corporate Fund, including a Portfo-

lio, that is offered for sale under this simplified prospectusTax Act means the Income Tax Act (Canada);

and where the context requires, refers to ScotiaFunds,whether a Corporate Fund, a Trust Fund or an LP Fund; Trust Funds refers to the ScotiaFunds that are structured as

mutual fund trusts and issue units; andLP Funds refers to an investment fund structured as alimited partnership established from time to time in which underlying fund refers to an investment fund (either aone or more Corporate Funds may invest, and LP Fund refers ScotiaFund or other investment fund, including anto any of them; exchange-traded fund) in which a fund invests.

Manager, 1832 LP, we, us, and our refer to 1832 Asset This simplified prospectus contains selected important infor-Management L.P.; mation to help you make an informed investment decision

about the Funds and to understand your rights as an inves-Portfolios or Portfolio Classes refers to the Scotia INNOVA

tor. It is divided into two parts. The first part, from pages 1Portfolio Classes and Scotia Partners Portfolio Classes that

to 44, contains specific information about each of the Fundsare offered for sale under this simplified prospectus and

offered for sale under this simplified prospectus. The secondPortfolio or Portfolio Class refers to any of them;

part, from pages 45 to 65, contains general information thatapplies to all of the Funds offered for sale under thisReference Funds refers to Scotia Private Short-Mid Govern-simplified prospectus and the risks of investing in mutualment Bond Pool, Scotia Private Canadian Corporate Bondfunds generally, as well as the names of the firms responsiblePool and Scotia Canadian Income Fund and Reference Fundfor the management of the Funds.refers to any of them;

Additional information about each Fund is available in itsReference Securities means the portfolio securities held by aannual information form, its most recently filed Fund Facts,Reference Fund;its most recently filed interim financial reports and annual

Scotiabank includes The Bank of Nova Scotia (Scotiabank�) financial statements and its most recently filed annual andand its affiliates, including 1832 Asset Management L.P., interim management reports of fund performance. TheseScotia Securities Inc. and Scotia Capital Inc. (including documents are incorporated by reference into this simplifiedScotiaMcLeod� and Scotia iTRADE�, each a division of prospectus. That means they legally form part of this simpli-Scotia Capital Inc.); fied prospectus just as if they were printed in it.

Scotia INNOVA Portfolio Classes refers to Scotia INNOVA You can get a copy of the Funds’ annual information form, itsIncome Portfolio Class, Scotia INNOVA Balanced Income most recently filed Fund Facts, financial statements andPortfolio Class, Scotia INNOVA Balanced Growth Portfolio management reports of fund performance at no charge byClass, Scotia INNOVA Growth Portfolio Class and Scotia calling 1-800-268-9269 (416-750-3863 in Toronto) for English,INNOVA Maximum Growth Portfolio Class; or 1-800-387-5004 for French, or by asking your registered

investment professional. You will also find these documentsScotia Partners Portfolio Classes refers to Scotia Partnerson our website at www.scotiafunds.com.Balanced Income Portfolio Class, Scotia Partners Balanced

Growth Portfolio Class, Scotia Partners Growth Portfolio These documents and other information about the Funds areClass and Scotia Partners Maximum Growth Portfolio Class; also available at www.sedar.com.

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Fund specific information

The Funds offered under this simplified prospectus are part approved by a majority of votes cast at a meeting of securi-of the ScotiaFunds family of funds. Each Fund is a separate tyholders of the Fund called for that purpose.class of mutual fund shares of the Corporation, and eachclass is divided into one or more separate series. Each Fund About derivativesis associated with an investment portfolio having specific

Derivatives are investments that derive their value from theinvestment objectives. Each share of a series represents anprice of another investment or from anticipated movementsequal, undivided interest in the portion of the Fund’s netin interest rates, currency exchange rates or market indexes.assets attributable to that series. Expenses of each series areDerivatives are usually contracts with another party to buy ortracked separately and a separate share price is calculatedsell an asset at a later time and at a set price. Examples offor each series. All of the Funds offered under this simplifiedderivatives are options, forward contracts, futures contractsprospectus offer Series A shares and some of the Funds alsoand swaps.offer Series T shares.• Options generally give holders the right, but not the

The series have different management fees and are intendedobligation, to buy or sell an asset, such as a security or

for different investors. Series A and Series T shares arecurrency, at a set price and a set time. Option holders

available to all investors. You will find more informationnormally pay the other party a cash payment, called a

about the different series of shares under About the seriespremium, for agreeing to give them the option.

of shares.• Forward contracts are agreements to buy or sell an asset,

such as a security or currency, at a set price and a setAbout the Fund descriptionstime. The parties have to complete the deal, or sometimes

On the following pages, you will find detailed descriptions of make or receive a cash payment, even if the price haseach of the Funds to help you make your investment deci- changed by the time the deal closes. Forward contractssions. Here is what each section of the fund descriptions are generally not traded on organized exchanges and aretells you: not subject to standardized terms and conditions.

• Futures contracts, like forward contracts, are agreementsFund details to buy or sell an asset, such as a security or currency, at a

set price and a set time. The parties have to complete theThis section gives you some basic information about each

deal, or sometimes make or receive a cash payment, evenFund, such as its start date and its eligibility for registered

if the price has changed by the time the deal closes.plans, including trusts governed by registered retirement

Futures contracts are normally traded on a registeredsavings plans (‘‘RRSPs’’), registered retirement income funds

futures exchange. The exchange usually specifies certain(‘‘RRIFs’’), registered education savings plans (‘‘RESPs’’),

standardized terms and conditions.deferred profit sharing plans, registered disability savings

• Swaps are agreements between two or more parties toplans (‘‘RDSPs’’) and tax-free savings accounts (‘‘TFSAs’’)exchange principal amounts or payments based on returns(collectively, ‘‘Registered Plans’’).on different investments. Swaps are not traded on organ-

All of the Funds offered under this simplified prospectus are, ized exchanges and are not subject to standardized termsor are expected to be, qualified investments under the and conditions.Tax Act for Registered Plans. In certain cases, we may

A Fund can use derivatives as long as it uses them in a wayrestrict purchases of shares of certain Funds by certainthat is consistent with the Fund’s investment objectives andRegistered Plans.with Canadian securities regulations. All of the Funds mayuse derivatives to hedge their investments against lossesWhat do the Funds invest in?from changes in currency exchange rates, interest rates and

This section tells you the fundamental investment objectives stock market prices. Some of the Funds may also use deriva-of each Fund and the investment strategies each Fund uses tives to gain exposure to financial markets or to investin trying to achieve those objectives. Any change to the indirectly in securities or other assets. This can be lessfundamental investment objectives of a Fund must be expensive than buying securities or assets directly.

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When a Fund uses derivatives for purposes other than hedg- gold certificates, on an unlevered basis (‘‘Gold ETFs’’), pro-ing, it holds enough cash or money market instruments to vided such investment is in accordance with the fundamen-fully cover its positions, as required by securities regulations. tal investment objectives of the Fund and the Fund’s aggre-

gate market value exposure to gold (whether direct orindirect, including through Gold ETFs) does not exceed 10%Investing in other investment fundsof the net asset value of the Fund, taken at market value at

Each of the Funds may, from time to time, invest some or all the time of the transaction.of their assets in underlying funds that are managed by us,including other ScotiaFunds, or our affiliates or associates, Funds that engage in repurchase and reverseor by third party investment managers. When deciding to repurchase transactionsinvest in, or obtain exposure to, other investment funds, the

Some of the Funds may enter into repurchase or reverseportfolio advisor may consider a variety of criteria, includingrepurchase agreements to generate additional income frommanagement style, investment performance and consistency,securities held in a Fund’s portfolio. When a mutual fundrisk attributes and the quality of the underlying fund’sagrees to sell a security at one price and buy it back on amanager or portfolio advisor.specified later date (usually at a lower price), it is enteringinto a repurchase transaction. When a mutual fund agrees toExchange-traded fundsbuy a security at one price and sell it back on a specified

Some of the Funds may invest in securities of exchange- later date (usually at a higher price), it is entering into atraded funds (‘‘ETFs’’). Under securities legislation, a reverse repurchase transaction. For a description of themutual fund is permitted to invest in securities of an ETF strategies the Funds use to minimize the risks associatedthat are ‘‘index participation units’’ only if: with these transactions, see the discussion under Repur-

chase and reverse repurchase transaction risk.• no management fees or incentive fees are payable by themutual fund that, to a reasonable person, would duplicate

Funds that lend their securitiesa fee payable by the ETF for the same service;

• no sales fees or redemption fees are payable by the mutual Some of the Funds may enter into securities lending transac-fund in relation to its purchases or redemptions of the tions to generate additional income from securities held in asecurities of the ETF if the ETF is managed by the Fund’s portfolio. A mutual fund may lend securities held inmanager or an affiliate or associate of the manager of the its portfolio to qualified borrowers who provide adequatemutual fund; and collateral. For a description of the strategies the Funds use

to minimize the risks associated with these transactions, see• no sales fees or redemption fees, other than brokeragethe discussion under Securities lending risk.fees, are payable by the mutual fund in relation to its

purchases or redemptions of the securities of the ETFthat, to a reasonable person, would duplicate a fee payable Funds that engage in short sellingby an investor in the mutual fund.

Mutual funds may be permitted to engage in a limitedThe proportions and types of ETFs held by a mutual fund will amount of short selling under securities regulations. A ‘‘shortvary according to the risk and investment objectives of the sale’’ is where a mutual fund borrows securities from aFund. Please refer to Investing in other investment funds lender which are then sold in the open market (or ‘‘soldabove for more information. short’’). At a later date, the same number of securities are

repurchased by the mutual fund and returned to the lender.In the interim, the proceeds from the first sale are depositedGold Exchange-traded fundswith the lender and the mutual fund pays interest to the

Certain Funds, have received the approval of the Canadian lender. If the value of the securities declines between thesecurities regulatory authorities to invest in exchange-traded time that the mutual fund borrows the securities and thefunds that are traded on a stock exchange in Canada or the time it repurchases and returns the securities, the mutualUnited States and that hold or seek to replicate the perform- fund makes a profit for the difference (less any interest theance of gold, permitted gold certificates or specified deriva- mutual fund is required to pay to the lender). In this way,tives, of which the underlying interest is gold or permitted the mutual fund has more opportunities for gains when

markets are generally volatile or declining.

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What are the risks of investing in the Fund? consult your registered investment professional. If you do nothave a registered investment professional, you can speak with

This section tells you the risks of investing in the Fund. Youone of our representatives at any Scotiabank branch or by

will find a description of each risk in Specific risks ofcalling a Scotia Securities Inc. office.

mutual funds.

Dividend policyInvestment risk classification methodology

This section tells you when the Fund pays dividends. Divi-A risk classification rating is assigned to each Fund to

dends on shares held in Registered Plans and non-registeredprovide you with information to help you determine whether

accounts are reinvested in additional shares of the Fund,the Fund is appropriate for you. Each Fund is assigned a risk

unless you tell your registered investment professional thatrating in one of the following categories: low, low to medium,

you want to receive cash distributions. For information aboutmedium, medium to high or high. The investment risk rating

how dividends are taxed, see Income tax considerationsfor each Fund is reviewed at least annually as well as if there

for investors.is a material change in a Fund’s investment objective orinvestment strategies.

Fund expenses indirectly borne by investorsThe methodology used to determine the risk rating of a Fund

This is an example of how much the Fund might pay infor purposes of disclosure in this simplified prospectus is

expenses. It is intended to help you compare the cost ofbased on a combination of the qualitative aspects of the

investing in the Fund with the cost of investing in othermethodology recommended by the Fund Risk Classification

mutual funds. Each Fund pays its own expenses, but theyTask Force of the Investment Fund Institute of Canada and

affect you because they reduce the Fund’s returns.the Manager’s quantitative analysis of the Fund’s historicvolatility. In particular, the standard deviation of each Fund The table shows how much the Fund would pay in expensesis reviewed. Standard deviation is a common statistic used to on a $1,000 investment with a 5% annual return. The infor-measure the volatility and risk of an investment. Funds with mation in the tables assumes that the Fund’s managementhigher standard deviations are generally classified as being expense ratio was the same throughout each period shown asmore risky. The Manager takes into account other qualitative it was during its last completed financial year. You will findfactors in making its final determination of each Fund’s risk more information about fees and expenses in Feesrating. Qualitative factors taken into account include key and expenses.investment policy guidelines which may include but are notlimited to regional, sectoral and market capitalizationrestrictions as well as asset allocation policies.

The Manager recognizes that other types of risk, both mea-surable and non-measurable, may exist and that historicalperformance may not be indicative of future returns and aFund’s historic volatility may not be indicative of its futurevolatility.

The methodology that the Manager uses to identify theinvestment risk level of the Funds is available on request atno cost by contacting us toll free at 1-800-268-9269(or 416-750-3863 in Toronto) for English or1-800-387-5004 for French or by email [email protected] or by writing to us at the addresson the back cover of this simplified prospectus.

Who should invest in this Fund?

This section can help you decide if the Fund might be suitablefor your investment portfolio. It is meant as a general guideonly. For advice about your investment portfolio, you should

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Scotia Conservative Government Bond Capital Yield ClassThe Fund is currently closed to new purchases or switches of The average term to maturity of the Fund’s and the underly-securities from other funds into this Fund. The Fund may be ing fund’s investments will vary, depending on market condi-re-opened at a later date. tions. The portfolio advisor of the Fund, when investing

directly in such securities, and of the underlying fund adjuststhe average term to maturity to try to maximize returnsFund detailswhile minimizing interest rate risk.

Fund type Fixed income fund

Start date Series A shares: May 28, 2012 The Fund, when investing directly in such securities, and theType of securities Series A shares of a mutual fund underlying fund use interest rate and yield curve analysis to

corporationselect individual investments and to manage the Fund or the

Eligible for YesRegistered Plans? underlying Fund’s average term to maturity, and analysesPortfolio advisor 1832 Asset Management L.P. credit risk to identify securities that offer the potential for

Toronto, Ontariohigher yields at an acceptable level of risk. The Fund mayalso retain cash to fund its expenses and/or meet its redemp-

What does the Fund invest in? tion requirements to securityholders. The Fund may alsoinvest in money market instruments.Investment objectives

The Fund and underlying fund may also invest up to 30% ofThe Fund’s objective is to provide income and modest capitalits assets in foreign securities.gains by primarily providing exposure to bonds and treasury

bills issued or guaranteed by Canadian federal, provincial The Fund and the underlying fund may use derivatives suchand municipal governments or agency of such governments, as options, forwards and swaps to adjust the Fund’s averageand money market instruments of Canadian issuers, includ- term to maturity, to gain or reduce exposure to income-ing commercial paper, bankers’ acceptances, asset-backed or producing securities and to hedge against changes in interestmortgage-backed securities and guaranteed investment rates. They will only use derivatives as permitted by securi-certificates. ties regulations.

The Fund will obtain such exposure in one or more of the The Fund and the underlying fund also may enter intofollowing ways, in any combination: securities lending transactions, repurchase transactions and

reverse repurchase transactions, to the extent permitted by• by investing directly in such fixed income securities;securities regulations, to earn additional income or enhance• by investing in units of the Scotia Private Short-Midreturns. For more information about repurchase, reverseGovernment Bond Pool (the ‘‘underlying fund’’); andrepurchase and securities lending transactions and how the

• by investing in units of an LP Fund which makes use of Fund limits the risks associated with them see Specific risksforward contracts, deposit notes or other derivatives to of mutual funds – Repurchase and reverse repurchasegain exposure to the return of the Reference Fund. transaction risk.

Any change to the fundamental investment objectives must The Fund and the underlying fund may also engage in shortbe approved by a majority of votes cast at a meeting of selling on the conditions permitted by Canadian securitiessecurityholders called for that purpose. rules. In determining whether securities of a particular

issuer should be sold short, the portfolio advisor utilizes theInvestment strategies same analysis that is described above for deciding whether to

purchase the securities. Where the analysis generally pro-Securities with a maturity of one year or less will generallyduces a favourable outlook, the issuer is a candidate forhave a credit rating of R1 (low) or better by Dominion Bondpurchase. Where the analysis produces an unfavourable out-Rating Service Limited (DBRS), or an equivalent rating bylook, the issuer is a candidate for a short sale. For a moreanother designated rating organization. Securities with adetailed description of short selling and the limits withinmaturity of more than one year must have a credit rating ofwhich the underlying fund may engage in short selling,BBB (low) or better by DBRS, or an equivalent rating by

another designated rating organization.

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please refer to Specific risks of mutual funds – Short You will find details about each risk under Specific risks ofselling risk. mutual funds.

Additional information about the underlying fund is set out During the 12 months preceding April 18, 2017, up to 100% ofin its simplified prospectus, Fund Facts and annual the net assets of the portfolio were invested in Scotia Privateinformation form. Short-Mid Government Bond Pool Series I.

The Fund may invest in other investment funds that areWho should invest in this Fund?

managed by us, an affiliate or associate of ours or otherinvestment fund managers. You will find more information This Fund may be suitable for you if you:about investing in other investment funds under Investing in

• want exposure similar to that of a well-diversified portfolioother investment funds.

of fixed income securities issued or guaranteed by Cana-dian federal, provincial and municipal governments or any

What are the risks of investing in the Fund? agency thereof and Canadian money market instruments;

To the extent that the Fund invests in or has exposure to • are planning to hold your investment in a non-registeredunderlying funds, it has the same risks as the underlying account;funds it holds. The Fund takes on the risks of an underlying • are looking for low to medium risk; andfund in proportion to its investment in, or exposure to

• are investing for the medium to long term.that fund.

Please see Investment risk classification methodology for aThe risks of investing in this Fund include the following:

description of how we determined the classification of this• asset-backed and mortgage-backed securities risk Fund’s risk level.• class risk

Dividend policy• commodity risk

• concentration risk The Fund will pay ordinary dividends and/or capital gainsdividends only when declared by the Board of Directors of• credit riskthe Corporation. Generally, the Corporation pays any ordi-

• currency risknary dividend in December and any capital gains dividends

• derivatives risk within 60 days following the year end or at such other times• foreign investment risk as may be determined by the Board of Directors of the

Corporation, but only to the extent necessary to minimize• fund-of-funds riskthe tax liability of the Corporation.

• interest rate riskWe automatically reinvest all dividends in additional shares• issuer-specific riskof the Fund, unless you tell your registered investment

• liquidity riskprofessional that you want to receive them in cash.

• repurchase and reverse repurchase transaction risk

• securities lending risk Fund expenses indirectly borne by investors

• series risk This example shows the Fund’s expenses on a $1,000 invest-• short selling risk ment with a 5% annual return.

• significant securityholder risk Fees and expensespayable over 1 year 3 years 5 years 10 years• underlying ETFs riskSeries A shares $ 14.15 44.59 78.16 177.92

• U.S. withholding tax risk

For additional information refer to Fees and expenses later inthis document.

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Scotia Fixed Income Blend ClassThe Fund is currently closed to new purchases or switches of The Fund may hold a portion of its assets in cash or moneysecurities from other funds into this Fund. The Fund may be market instruments while seeking investment opportunitiesre-opened at a later date. or for defensive purposes.

The Fund may invest or be exposed to up to 30% of its assetsFund details

in foreign securities.

Fund type Fixed income fundThe Fund and an underlying fund may use derivatives, such

Start date Series A shares: November 26, 2012as options, forwards and swaps, in order to adjust credit risk,Type of securities Series A shares of a mutual fund

corporation to gain or reduce exposure to income-producing securities,Eligible for Yes and to hedge against changes in interest rates and foreignRegistered Plans?

currency exchange rates. They will only use derivatives asPortfolio advisor 1832 Asset Management L.P.Toronto, Ontario permitted by securities regulations.

The Fund and an underlying fund may also engage in shortWhat does the Fund invest in? selling on the conditions permitted by Canadian securities

rules. In determining whether securities of a particularInvestment objectivesissuer should be sold short, the portfolio advisor utilizes the

The Fund’s objective is to provide income and modest capital same analysis that is described above for deciding whether togains by investing primarily in fixed income securities. purchase the securities. For a more detailed description of

short selling and the limits within which the underlying fundThe Fund will obtain such exposure in one or more of themay engage in short selling, please refer to Specific risks offollowing ways, in any combination:mutual funds – Short selling risk.

• by investing directly in such fixed income securities;The Fund and an underlying fund, to the extent permitted by• by investing in units of mutual funds managed by ussecurities regulations, may enter into securities lendingand/or other mutual fund managers that invest in fixedtransactions, repurchase and reverse repurchase transac-income securities; andtions to achieve the Fund’s overall investment objectives and

• by investing in units of an LP Fund which makes use of to earn additional income or enhance returns. For moreforward contracts, or other derivatives to gain exposure to information about repurchase, reverse repurchase and secur-the return of an underlying fund. ities lending transactions and how the Fund limits the risks

associated with them, see Specific risks of mutual funds –Any change to the fundamental investment objectives mustSecurities lending risk and Repurchase and reverse repur-be approved by a majority of votes cast at a meeting ofchase transaction risk.securityholders called for that purpose.

The Fund may invest in other investment funds that areInvestment strategies managed by us, an affiliate or associate of ours or other

investment fund managers. You will find more informationThe Fund invests primarily in underlying funds, includingabout investing in other investment funds under Investing inexchange-traded funds that invest in fixed income securitiesother investment funds.and may also invest in a wide variety of fixed income

securities.What are the risks of investing in the Fund?

Where the Fund invests in underlying funds, the weightingsTo the extent that the Fund invests in or has exposure toof those underlying funds may be rebalanced periodically, atunderlying funds, it has the same risks as the underlyingthe discretion of Manager, so as to allow the Manager to usefunds it holds. The Fund takes on the risks of an underlyingan investment approach that manages risk and increasesfund in proportion to its investment in that Fund.potential return to the Fund.

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The risks of investing in this Fund include the following: • can accept low to medium risk; and

• asset-backed and mortgage-backed risk • are investing for the medium to long term.

• class risk Please see Investment risk classification methodology for a• commodity risk description of how we determined the classification of this

Fund’s risk level.• concentration risk

• credit riskDividend policy

• currency riskThe Fund will pay ordinary dividends and/or capital gains

• derivatives riskdividends only when declared by the Board of Directors of

• emerging markets risk the Corporation. Generally, the Corporation pays any ordi-• foreign investment risk nary dividend in December and any capital gains dividends

within 60 days following the year end or at such other times• fund-of-funds riskas may be determined by the Board of Directors of the

• interest rate riskCorporation, but only to the extent necessary to minimize

• issuer-specific risk the tax liability of the Corporation.

• liquidity riskWe automatically reinvest all dividends in additional shares

• repurchase and reverse repurchase risk transaction risk of the Fund, unless you tell your registered investmentprofessional that you want to receive them in cash.• securities lending risk

• short selling riskFund expenses indirectly borne by investors

• significant securityholder riskThis example shows the Fund’s expenses on a $1,000 invest-• underlying ETFs riskment with a 5% annual return.

• U.S. withholding tax risk

Fees and expensesYou will find details about each risk under Specific risks of payable over 1 year 3 years 5 years 10 years

Series A shares $ 16.50 52.02 91.19 207.57mutual funds.

During the 12 months preceding April 18, 2017, up to 50.9% For additional information refer to Fees and expenses later inof the net assets of the portfolio were invested in Scotia this document.Canadian Income Fund Series I, up to 15.4% of the net assetsof the portfolio were invested in Scotia Private CanadianCorporate Bond Pool Series I, up to 15.4% of the net assets ofthe portfolio were invested in Scotia Private Short-Mid Gov-ernment Bond Pool Series I, up to 10.5% of the net assets ofthe portfolio were invested in Scotia Private High YieldIncome Pool Series I, and up to 10.2% of the net assets of theportfolio were invested in Scotia Private American Core-PlusBond Pool Series I.


This Fund may be suitable for you if you:

• want exposure to fixed income securities;

• are planning to hold your investment in a non-registeredaccount;

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Scotia Canadian Dividend ClassFund details The Fund and the underlying fund can invest up to 30% of its

assets in foreign securities anywhere in the world.Fund type Canadian equity fund

Start date Series A shares: May 28, 2012 The Fund and the underlying fund may use derivatives suchType of securities Series A shares of a mutual fund as options, forward contracts and swaps to hedge against

corporationlosses from changes in stock prices, commodity prices, mar-Eligible for Yes

Registered Plans? ket indexes or currency exchange rates, and to gain exposurePortfolio advisor 1832 Asset Management L.P. to financial markets. They will only use derivatives as per-

Toronto, Ontariomitted by securities regulations.

The Fund and underlying fund may, to the extent permittedWhat does the Fund invest in?by securities regulations, also participate in repurchase,

Investment objectives reverse repurchase and securities lending transactions toachieve the Fund’s overall investment objectives and earnThe Fund’s objective is to achieve a high level of dividendadditional income or to enhance returns. For more informa-income with some potential for long-term total investmenttion about repurchase, reverse repurchase and securitiesreturn, consisting of dividend income and long term capitallending transactions and how the Fund limits the risksgrowth. It invests primarily in dividend-paying commonassociated with them see Specific risks of mutual funds –shares and preferred shares of Canadian companies.Repurchase and reverse repurchase transaction risk.

Any change to the fundamental investment objectives mustThe Fund and the underlying fund may also engage in shortbe approved by a majority of votes cast at a meeting ofselling on the conditions permitted by Canadian securitiessecurityholders called for that purpose.rules. In determining whether securities of a particularissuer should be sold short, the portfolio advisor utilizes theInvestment strategiessame analysis that is described above for deciding whether to

The Fund may obtain exposure to such investments in one or purchase the securities. Where the analysis generally pro-more of the following ways, in any combination: duces a favourable outlook, the issuer is a candidate for

purchase. Where the analysis produces an unfavourable out-• by investing directly in such securities;look, the issuer is a candidate for a short sale. For a more• by investing in units of Scotia Canadian Dividend Funddetailed description of short selling and the limits within(the ‘‘underlying fund’’); andwhich the underlying fund may engage in short selling,

• through the use of derivatives to gain exposure to common please refer to Specific risks of mutual funds – Shortshares and preferred shares. selling risk.

The portfolio advisor of the Fund and the underlying fund Additional information about the underlying fund is set outuses fundamental analysis to identify investments that pay in its simplified prospectus, Fund Facts, and annualdividends and income and have the potential for capital information form.growth over the long term. This involves evaluating the

The Fund may invest in other investment funds that arefinancial condition and management of each company, asmanaged by us, an affiliate or associate of ours or otherwell as its industry and the economy. The Fund’s direct andinvestment fund managers. You will find more informationindirect investments and the underlying fund’s assets, whenabout investing in other investment funds under Investing inconsidered as a whole, are diversified by industry and com-other investment funds.pany to help reduce risk.

What are the risks of investing in the Fund?

To the extent that the Fund invests in or has exposure tounderlying funds, it has the same risks as the underlyingfunds it holds. The Fund takes on the risks of an underlying

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fund in proportion to its investment in, or exposure to, Please see Investment risk classification methodology for athat fund. description of how we determined the classification of this

Fund’s risk level.The risks of investing in this Fund include the following:

• class risk Dividend policy• commodity risk

The Fund will pay ordinary dividends and/or capital gains• concentration risk dividends only when declared by the Board of Directors of• credit risk the Corporation. Generally, the Corporation pays any ordi-

nary dividend in December and any capital gains dividends• currency riskwithin 60 days following the year end or at such other times

• derivatives riskas may be determined by the Board of Directors of the

• equity risk Corporation, but only to the extent necessary to minimizethe tax liability of the Corporation.• foreign investment risk

• fund-of-funds risk We automatically reinvest all dividends in additional sharesof the Fund, unless you tell your registered investment• interest rate riskprofessional that you want to receive them in cash.

• issuer-specific risk

• liquidity riskFund expenses indirectly borne by investors

• repurchase and reverse repurchase transaction riskThis example shows the Fund’s expenses on a $1,000 invest-

• securities lending riskment with a 5% annual return.

• series riskFees and expenses

• short selling risk payable over 1 year 3 years 5 years 10 yearsSeries A shares $ 18.35 57.84 101.38 230.77

• significant securityholder risk

• underlying ETFs risk For additional information refer to Fees and expenses later in• U.S. withholding tax risk this document.

You will find details about each risk under Specific risks ofmutual funds.

During the 12 months preceding April 18, 2017, up to 100% ofthe net assets of the portfolio were invested in Scotia Cana-dian Dividend Fund Series I.



• want some potential for long term capital growth;


• can accept medium risk; and

• are investing for the long term.

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Scotia Canadian Equity Blend ClassFund details The Fund and an underlying fund may also engage in short

selling on the conditions permitted by Canadian securitiesFund type Canadian equity fund

rules. In determining whether securities of a particularStart date Series A shares: November 26, 2012

issuer should be sold short, the portfolio advisor utilizes theType of securities Series A shares of a mutual fundcorporation same analysis that is described above for deciding whether to

Eligible for Yes purchase the securities. For a more detailed description ofRegistered Plans?

short selling and the limits within which the underlying fundPortfolio advisor 1832 Asset Management L.P.Toronto, Ontario may engage in short selling, please refer to Specific risks of

mutual funds – Short selling risk.

What does the Fund invest in? The Fund and an underlying fund may, to the extent permit-ted by securities regulations, enter into securities lendingInvestment objectivestransactions, repurchase and reverse repurchase transac-

The Fund’s objective is to provide long-term capital growth. tions to achieve the Fund’s overall investment objectives andIt invests primarily in a mix of mutual funds managed by us to earn additional income or enhance returns. For moreand/or other mutual fund managers that invest in Canadian information about repurchase, reverse repurchase and secur-equity securities, and/or directly in Canadian equity ities lending transactions and how the Fund limits the riskssecurities. associated with them, see Specific risks of mutual funds –

Securities lending risk and Repurchase and reverse repur-Any change to the fundamental investment objectives mustchase transaction risk.be approved by a majority of votes cast at a meeting of

securityholders called for that purpose. The Fund may invest in other investment funds that aremanaged by us, an affiliate or associate of ours or other

Investment strategies investment fund managers. You will find more informationabout investing in other investment funds under Investing inThe Fund invests primarily in underlying funds that invest inother investment funds.Canadian equity securities and may also invest in a wide

variety of Canadian equity securities.What are the risks of investing in the Fund?

Where the Fund invests in underlying funds, the weightingsTo the extent that the Fund invests in underlying funds, itof those underlying funds may be rebalanced periodically, athas the same risks as the underlying funds it holds. Thethe discretion of the Manager, so as to allow the Manager toFund takes on the risks of an underlying fund in proportionuse an investment approach that manages risk and increasesto its investment in that Fund.potential return to the Fund.

The risks of investing in this Fund include the following:The Fund may hold a portion of its assets in cash or moneymarket instruments while seeking investment opportunities • class riskor for defensive purposes. • commodity risk

The Fund may invest up to 30% of its assets in foreign • concentration risksecurities. • credit risk

The Fund and an underlying fund may use derivatives, such • currency riskas options, forwards and swaps, in order to adjust credit risk, • derivatives riskto gain or reduce exposure to income-producing securities,

• emerging markets riskand to hedge against changes in interest rates and foreign• foreign investment riskcurrency exchange rates. They will only use derivatives as

permitted by securities regulations. • fund-of-funds risk

• interest rate risk

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• issuer-specific risk within 60 days following the year end or at such other timesas may be determined by the Board of Directors of the• liquidity riskCorporation, but only to the extent necessary to minimize

• repurchase and reverse repurchase risk transaction riskthe tax liability of the Corporation.

• securities lending riskWe automatically reinvest all dividends in additional shares

• short selling riskof the Fund, unless you tell your registered investment

• significant securityholder risk professional that you want to receive them in cash.

• small company riskFund expenses indirectly borne by investors• underlying ETFs risk

• U.S. withholding tax risk This example shows the Fund’s expenses on a $1,000 invest-ment with a 5% annual return.

You will find details about each risk under Specific risks ofmutual funds. Fees and expenses

payable over 1 year 3 years 5 years 10 yearsSeries A shares $ 23.99 75.61 132.53 301.68During the 12 months preceding April 18, 2017, up to 30.4%

of the net assets of the portfolio were invested in CI Cam-For additional information refer to Fees and expenses later inbridge Canadian Equity Corporate Class Series I, up to 20.6%this document.of the net assets of the portfolio were invested in Dynamic

Small Business Fund Series O, up to 20.4% of the net assetsof the portfolio were invested in Scotia Canadian Blue ChipFund Series I, up to 20.3% of the net assets of the portfoliowere invested in Dynamic Dividend Advantage FundSeries O, and up to 10.3% of the net assets of the portfoliowere invested in Scotia Private Canadian Small Cap PoolSeries I.



• want the growth potential of investing in a broad range ofCanadian equity securities;


• can accept medium risk; and


Please see Investment risk classification methodology for adescription of how we determined the classification of thisFund’s risk level.

Dividend policy

The Fund will pay ordinary dividends and/or capital gainsdividends only when declared by the Board of Directors ofthe Corporation. Generally, the Corporation pays any ordi-nary dividend in December and any capital gains dividends

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Scotia U.S. Equity Blend ClassFund details The Fund and an underlying fund may also engage in short

selling on the conditions permitted by Canadian securitiesFund type U.S. equity fund




short selling and the limits within which the underlying fundPortfolio advisor 1832 Asset Management L.P.Toronto, Ontario may engage in short selling, please refer to Specific risks of

mutual funds – Short selling risk.


The Fund’s objective is to provide long-term capital growth. tions to achieve the Fund’s overall investment objectives andIt invests primarily in a mix of mutual funds managed by us to earn additional income or enhance returns. For moreand/or other mutual fund managers that invest in U.S. equity information about repurchase, reverse repurchase and secur-securities, and/or directly in U.S. equity securities. ities lending transactions and how the Fund limits the risks

associated with them, see Specific risks of mutual funds –Any change to the fundamental investment objectives mustSecurities lending risk and Repurchase and reverse repur-be approved by a majority of votes cast at a meeting ofchase transaction risk.securityholders called for that purpose.

The Fund may invest in other investment funds that areInvestment strategies managed by us, an affiliate or associate of ours or other

investment fund managers. You will find more informationThe Fund invests primarily in underlying funds, includingabout investing in other investment funds under Investing inexchange-traded funds that invest in U.S. equity securitiesother investment funds.and may also invest in a wide variety of U.S equity securities.

Where the Fund invests in underlying funds, the weightings What are the risks of investing in the Fund?of those underlying funds may be rebalanced periodically, at

To the extent that the Fund invests in underlying funds, itthe discretion of the Manager, so as to allow the Manager tohas the same risks as the underlying funds it holds. Theuse an investment approach that manages risk and increasesFund takes on the risks of an underlying fund in proportionpotential return to the Fund.to its investment in that fund.

The Fund may hold a portion of its assets in cash or moneyThe risks of investing in this Fund include the following:market instruments while seeking investment opportunities

or for defensive purposes. • class risk

• commodity riskThe Fund may invest up to 100% of its assets in foreignsecurities, including up to 30% of its assets in securities • concentration risklisted outside the U.S. as well as in ADRs of foreign domiciled • credit riskcompanies.

• currency riskThe Fund and an underlying fund may use derivatives, such • derivatives riskas options, forwards and swaps, in order to adjust credit risk,

• emerging markets riskto gain or reduce exposure to income-producing securities,• foreign investment riskand to hedge against changes in interest rates and foreign

currency exchange rates. They will only use derivatives as • fund-of-funds riskpermitted by securities regulations.

• interest rate risk

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• issuer-specific risk the Corporation. Generally, the Corporation pays any ordi-nary dividend in December and any capital gains dividends• liquidity riskwithin 60 days following the year end or at such other times

• repurchase and reverse repurchase risk transaction riskas may be determined by the Board of Directors of the

• securities lending risk Corporation, but only to the extent necessary to minimizethe tax liability of the Corporation.• short selling risk

• significant securityholder risk We automatically reinvest all dividends in additional sharesof the Fund, unless you tell your registered investment• small company riskprofessional that you want to receive them in cash.

• underlying ETFs risk

• U.S. withholding tax riskFund expenses indirectly borne by investors

You will find details about each risk under Specific risks ofThis example shows the Fund’s expenses on a $1,000 invest-

mutual funds.ment with a 5% annual return.

During the 12 months preceding April 18, 2017, up to 38.3%Fees and expenses

of the net assets of the portfolio were invested in Scotia payable over 1 year 3 years 5 years 10 yearsSeries A shares $ 25.22 79.49 139.33 317.15Private U.S. Large Cap Growth Pool Series I, up to 38.3% of

the net assets of the portfolio were invested in Scotia PrivateFor additional information refer to Fees and expenses later inU.S. Value Pool Series I, up to 20.9% of the net assets of thethis document.portfolio were invested in CI American Small Companies

Fund Class I, up to 16.5% of the net assets of the portfoliowere invested in Scotia U.S. Opportunities Fund Series I, andup to 16.5% of the net assets of the portfolio were invested inDynamic Power American Growth Series O.

As at April 18, 2017, one investor held approximately 10.3% ofthe outstanding shares of the fund.



• want the growth potential of investing in equity securitiesof a broad range of U.S. companies;


• can accept medium to high risk; and



Dividend policy

The Fund will pay ordinary dividends and/or capital gainsdividends only when declared by the Board of Directors of

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Scotia Global Dividend ClassFund details When deciding to buy or sell an investment, the portfolio

advisor considers whether the investment is a good valueFund type Global equity fund

relative to its current price.Start date Series A shares: May 28, 2012

Type of securities Series A shares of a mutual fund The Fund may invest up to 100% of its assets in foreigncorporation

securities.Eligible for YesRegistered Plans?

The Fund and the underlying fund are normally diversifiedPortfolio advisor 1832 Asset Management L.P.Toronto, Ontario across different countries and regions, however this may vary

from time to time, depending upon the portfolio advisor’sview of specific investment opportunities and macro-eco-What does the Fund invest in?nomic factors.

Investment objectives

The Fund and the underlying fund may hold cash, and mayThis Fund aims to achieve high total investment return. It invest in fixed income securities of any quality or term andinvests primarily in equity securities of companies anywhere other income producing securities, where the quality andin the world that pay, or may be expected to pay, dividends as term of each investment is selected according to marketwell as in other types of securities that may be expected to conditions.distribute income.

The Fund and the underlying fund may use warrants andAny change to the fundamental investment objectives must derivatives such as options, futures, forward contracts andbe approved by a majority of votes cast at a meeting of swaps to gain exposure to individual securities and marketssecurityholders called for that purpose. instead of buying the securities directly to hedge against

losses from changes in the prices of the Fund’s investmentsInvestment strategies and from exposure to foreign currencies. They will only use

derivatives as permitted by securities regulations.The Fund may obtain exposure to such investments in one ormore of the following ways, in any combination: This Fund and the underlying fund also may enter into• by investing directly in such equity and/or other income securities lending transactions, repurchase transactions and

producing securities; reverse repurchase transactions, to the extent permitted bysecurities regulations, to earn additional income or enhance• by investing in units of Scotia Global Dividend Fundreturns. For more information about repurchase, reverse(the ‘‘underlying fund’’); andrepurchase and securities lending transactions and how the

• through the use of derivatives to gain exposure to suchFund limits the risks associated with them see Specific risks

equity and/or other income producing securities.of mutual funds – Repurchase and reverse repurchasetransaction risk.The portfolio advisor of the Fund and the underlying fund

identifies companies that have the potential for success inThe Fund and the underlying fund may also engage in short

their industry and then considers the impact of economicselling on the conditions permitted by Canadian securities

trends.rules. In determining whether securities of a particularissuer should be sold short, the portfolio advisor utilizes theThe portfolio advisor uses techniques such as fundamentalsame analysis that is described above for deciding whether toanalysis to assess growth potential and valuation. This meanspurchase the securities. Where the analysis generally pro-evaluating the financial condition and management of eachduces a favourable outlook, the issuer is a candidate forcompany, its industry and the overall economy. As part of thispurchase. Where the analysis produces an unfavourable out-evaluation, the portfolio advisor:look, the issuer is a candidate for a short sale. For a more• analyzes financial data and other information sourcesdetailed description of short selling and the limits within

• assesses the quality of management which the underlying fund may engage in short selling,• conducts company interviews, where possible.

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please refer to Specific risks of mutual funds – Short • short selling riskselling risk. • significant securityholder risk

In the event of adverse market, economic and/or political • underlying ETFs riskconditions, the assets of the Fund and the underlying fund • U.S. withholding tax riskmay be primarily invested in a combination of equity securi-

You will find details about each risk under Specific risks ofties and cash and cash equivalent securities. The portfoliomutual funds.advisor may engage in active or frequent trading of invest-

ments. This increases the possibility that an investor willDuring the 12 months preceding April 18, 2017, up to 104.3%

receive taxable distributions. This can also increase tradingof the net assets of the portfolio were invested in Scotia

costs, which lower the Fund’s returns.Global Dividend Fund Series I.

Additional information about the underlying fund is set outin its simplified prospectus, Fund Facts, and annual Who should invest in this Fund?information form.

This Fund may be suitable for you if you:The Fund may invest in other investment funds that are • want the potential for long term growth from investing inmanaged by us, an affiliate or associate of ours or other companies anywhere in the world;investment fund managers. You will find more information

• are planning to hold your investment in a non-registeredabout investing in other investment funds under Investing inaccount;other investment funds.

• can accept medium to high risk; andWhat are the risks of investing in the Fund? • are investing for the long term.

To the extent that the Fund invests in underlying funds, it Please see Investment risk classification methodology for ahas the same risks as the underlying funds it holds. The description of how we determined the classification of thisFund takes on the risks of an underlying fund in proportion Fund’s risk level.to its investment in that Fund. To the extent it investsdirectly in equity and other income-producing securities, the Dividend policyFund will have the risks associated with investing directly in

The Fund will pay ordinary dividends and/or capital gainssuch equity and other income-producing securities.dividends only when declared by the Board of Directors of

The risks of investing in this Fund include the following:the Corporation. Generally, the Corporation pays any ordi-

• class risk nary dividend in December and any capital gains dividends• commodity risk within 60 days following the year end or at such other times

as may be determined by the Board of Directors of the• concentration riskCorporation, but only to the extent necessary to minimize• credit riskthe tax liability of the Corporation.

• currency riskWe automatically reinvest all dividends in additional shares• derivatives riskof the Fund, unless you tell your registered investment

• emerging markets riskprofessional that you want to receive them in cash.

• equity risk

• foreign investment risk Fund expenses indirectly borne by investors

• fund-of-funds risk This example shows the Fund’s expenses on a $1,000 invest-• income trust risk ment with a 5% annual return.• interest rate risk

Fees and expensespayable over 1 year 3 years 5 years 10 years• issuer-specific riskSeries A shares $ 26.65 84.01 147.26 335.20

• liquidity risk

• repurchase and reverse repurchase transaction risk For additional information refer to Fees and expenses later inthis document.• securities lending risk

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Scotia International Equity Blend ClassFund details The Fund and an underlying fund may also engage in short

selling on the conditions permitted by Canadian securitiesFund type International equity fund




short selling and the limits within which the underlying fundPortfolio advisor 1832 Asset Management L.P.Toronto, Ontario may engage in short selling, please refer to Specific Risks of

Mutual Funds– Short selling risk.


The Fund’s objective is to provide long-term capital growth. tions to achieve the Fund’s overall investment objectives andIt invests primarily in a diversified mix of mutual Funds to earn additional income or enhance returns. For moremanaged by us and/or other mutual fund managers that information about repurchase, reverse repurchase and secur-invest in companies located outside of the U.S and Canada, ities lending transactions and how the Fund limits the risksand/or directly in equity securities of companies that are associated with them, see Specific risks of mutual funds –located outside of the U.S. and Canada. Securities lending risk and Repurchase and reverse repur-

chase transaction risk.Any change to the fundamental investment objectives mustbe approved by a majority of votes cast at a meeting of The Fund may invest in other investment funds that aresecurityholders called for that purpose. managed by us, an affiliate or associate of ours or other

investment fund managers. You will find more informationInvestment strategies about investing in other investment funds under Investing in

other investment funds.The Fund invests primarily in underlying funds that invest inequity securities of companies located outside of the U.S.

What are the risks of investing in the Fund?and Canada and may also invest in equity securities ofcompanies located outside of the U.S. and Canada. To the extent that the Fund invests underlying funds, it has

the same risks as the underlying funds it holds. The FundWhere the Fund invests in underlying funds, the weightingstakes on the risks of an underlying fund in proportion to itsof those underlying funds may be rebalanced periodically, atinvestment in that Fund.the discretion of Manager, so as to allow the Manager to use

an investment approach that manages risk and increases The risks of investing in this Fund include the following:potential return to the Fund.

• class riskThe Fund may hold a portion of its assets in cash or money • commodity riskmarket instruments while seeking investment opportunities

• concentration riskor for defensive purposes.• credit risk

The Fund may invest up to 100% of its assets in foreign• currency risksecurities.• derivatives risk

The Fund and an underlying fund may use derivatives, such• emerging markets riskas options, forwards and swaps, in order to adjust credit risk,• foreign investment riskto gain or reduce exposure to income-producing securities,

and to hedge against changes in interest rates and foreign • fund-of-funds riskcurrency exchange rates. They will only use derivatives as

• interest rate riskpermitted by securities regulations.

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• issuer-specific risk Dividend policy

• liquidity risk The Fund will pay ordinary dividends and/or capital gains• repurchase and reverse repurchase risk transaction risk dividends only when declared by the Board of Directors of

the Corporation. Generally, the Corporation pays any ordi-• securities lending risknary dividend in December and any capital gains dividends

• short selling riskwithin 60 days following the year end or at such other times

• significant securityholder risk as may be determined by the Board of Directors of theCorporation, but only to the extent necessary to minimize• small company riskthe tax liability of the Corporation.


We automatically reinvest all dividends in additional shares• U.S. withholding tax riskof the Fund, unless you tell your registered investment

You will find details about each risk under Specific risks of professional that you want to receive them in cash.mutual funds.

Fund expenses indirectly borne by investorsDuring the 12 months preceding April 18, 2017, up to 66.5%of the net assets of the portfolio were invested in Scotia

This example shows the Fund’s expenses on a $1,000 invest-Private International Equity Pool Series I, up to 21.0% of the

ment with a 5% annual return.net assets of the portfolio were invested in Scotia Interna-tional Value Fund Series I, up to 11.3% of the net assets of Fees and expenses

payable over 1 year 3 years 5 years 10 yearsthe portfolio were invested in Scotia Private Emerging Mar-Series A shares $ 28.50 89.83 157.45 358.41

kets Pool Series I, up to 11.2% of the net assets of theportfolio were invested in CI International Value Fund

For additional information refer to Fees and expenses later inClass I, up to 11.2% of the net assets of the portfolio were

this document.invested in Scotia Private International Small to Mid CapValue Pool Series I, and up to 11.2% of the net assets of theportfolio were invested in CI Black Creek InternationalEquity Corporate Class, Class I.

As at April 18, 2017, one investor held approximately 10.2% ofthe outstanding shares of the fund.



• want the growth potential of investing in equity securitiesof companies located outside the U.S. and Canada;


• can accept medium to high risk; and



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Scotia INNOVA Income Portfolio ClassThe Portfolio is currently closed to new purchases or equity securities and fixed income securities in which theswitches of securities from other funds into this Portfolio. The Portfolio invests may change from time to time, but inPortfolio may be re-opened at a later date. general we will keep the weighting for each asset class no

more than 20% above or below the amounts set out above.You will find more information on investing in underlying

Fund type Asset allocation portfoliofunds in Investing in other investment funds.

Start date Series A shares: May 28, 2012

Type of securities Series A shares of a mutual fund Although up to 100% of the Portfolio’s assets may be investedcorporation

in underlying funds, the Portfolio may hold a portion of itsEligible for YesRegistered Plans? assets in cash or money market instruments while seekingPortfolio advisor 1832 Asset Management L.P. investment opportunities or for defensive purposes.

Toronto, Ontario

As part of its mandate, the portfolio advisor uses a taxmanaged strategy in which it seeks to minimize net taxableWhat does the Portfolio invest in?income which is accomplished through a yield management

Investment objectives strategy, designed to achieve lower net income, while manag-ing portfolio risk. The yield management strategy entails aThe Portfolio’s objective is to achieve a balance of incomeshift in portfolio asset holdings from higher-yielding fixedand long term capital appreciation, with a significant biasincome securities to lower yielding fixed income securitiestowards income. It invests primarily in a diversified mix ofthat have lower volatility. This strategy is a tax-managedmutual funds, and/or equity securities and/or fixed incomestrategy because it shifts from higher-yielding fixed incomesecurities located anywhere in the world.securities to lower-yielding fixed income securities that pro-

It may also invest a portion of its assets in units of one or duce less gross income. In order to manage the potentialmore LP Funds which make use of forward contracts, deposit change in volatility resulting from a shift from higher-yield-notes or other derivatives in order to gain exposure to the ing fixed income securities to lower-yielding fixed incomereturn of mutual funds managed by the Manager or an securities, there may be a shift to lower volatility equityaffiliate thereof. securities.

Any change to the fundamental investment objectives must Up to 40% of the Portfolio’s assets may be exposed to foreignbe approved by a majority of votes cast at a meeting of securities.securityholders for that purpose.

The Portfolio and each underlying fund may use derivativessuch as options, forward contracts and swaps to hedgeInvestment strategiesagainst losses from changes in the prices of investments,

The Portfolio is an asset allocation fund that allocates your commodity prices, interest rates, credit risk, market indicesinvestment between two asset classes: fixed income or currency exchange rates, to gain exposure to financialand equities. markets, and to adjust the average term to maturity. They

will only use derivatives as permitted by securitiesThe table below outlines the target weighting for each assetregulations.class in which the Portfolio invests.

The Portfolio and the underlying funds also may enter intoTarget

securities lending transactions, repurchase transactions andAsset Class WeightingFixed Income 75% reverse repurchase transactions, to the extent permitted byEquities 25% securities regulations, to achieve their investment objectives

and to enhance their returns. For more information aboutThe Portfolio is diversified by asset class, investment style, repurchase, reverse repurchase and securities lending trans-geography and market capitalization and may invest, directly actions and how the Portfolio limits the risks associated withor indirectly through underlying funds, in a wide variety of them see Specific risks of mutual funds – Repurchase andequity and fixed income securities. The underlying funds, reverse repurchase transaction risk.

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The Portfolio and the underlying funds may also engage in • interest rate riskshort selling on the conditions permitted by Canadian securi- • issuer-specific riskties rules. In determining whether securities of a particular

• liquidity riskissuer should be sold short, the portfolio advisor utilizes the

• repurchase and reverse repurchase transaction risksame analysis that is described above for deciding whether topurchase the securities. Where the analysis generally pro- • securities lending riskduces a favourable outlook, the issuer is a candidate for

• significant securityholder riskpurchase. Where the analysis produces an unfavourable out-

• short selling risklook, the issuer is a candidate for a short sale. For a moredetailed description of short selling and the limits within • small company riskwhich the underlying fund may engage in short selling, • underlying ETFs riskplease refer to Specific risks of mutual funds – Short

• U.S. withholding tax riskselling risk.

You will find details about each risk under Specific risks ofAdditional information about each underlying fund is set out

mutual funds.in its simplified prospectus, Fund Facts and annual informa-tion form or in equivalent disclosure documents that the During the 12 months preceding April 18, 2017, up to 16.9%underlying fund makes available. of the net assets of the portfolio were invested in Scotia

Private Canadian Corporate Bond Pool Series I, up to 14.3%The Portfolio may invest in other mutual funds that are

of the net assets of the portfolio were invested in Scotiamanaged by us, an affiliate or associate of ours or other

Floating Rate Income Fund Series I, up to 11.3% of the netmutual fund managers. You will find more information about

assets of the portfolio were invested in Scotia Total Returninvesting in other mutual funds under Investing in other

Bond LP Series I, and up to 10.3% of the net assets of theinvestment funds.

portfolio were invested in 1832 AM Tactical Asset Alloca-tion LP Series I.

What are the risks of investing in the Portfolio?

To the extent that the Portfolio invests in or has exposure to Who should invest in this Portfolio?underlying funds, it has the same risks as the underlying

This Portfolio may be suitable for you if you:funds it holds. The Portfolio takes on the risks of an underly-

• want a balanced holding with a significant bias towardsing fund in proportion to its investment in, or has exposurefixed income securities, which is diversified by asset class,to, that fund.investment style, geography and market capitalization;

The risks of investing in this Portfolio include the following:• are planning to hold your investment in a non-registered

• asset-backed and mortgage-backed securities risk account;• class risk • can accept low to medium risk; and• commodity risk • are investing for the medium to long term.• concentration risk

Please see Investment risk classification methodology for a• credit risk description of how we determined the classification of this• currency risk Portfolio’s risk level.

• derivatives riskDividend policy

• emerging markets risk

The Portfolio will pay ordinary dividends and/or capital gains• equity riskdividends only when declared by the Board of Directors of

• foreign investment riskthe Corporation. Generally, the Corporation pays any ordi-

• fund-of-funds risk nary dividend in December and any capital gains dividends

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within 60 days following the year end or at such other timesas may be determined by the Board of Directors of theCorporation, but only to the extent necessary to minimizethe tax liability of the Corporation.

We automatically reinvest all dividends in additional sharesof the Portfolio, unless you tell your registered investmentprofessional that you want to receive them in cash.

Portfolio expenses indirectly borne by investors

This example shows the Portfolio’s expenses on a $1,000investment with a 5% annual return.

Fees and expensespayable over 1 year 3 years 5 years 10 yearsSeries A shares $ 19.99 63.01 110.44 251.40


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Scotia INNOVA Balanced Income Portfolio ClassFund details general we will keep the weighting for each asset class no

more than 20% above or below the amounts set out above.Fund type Asset allocation portfolio

You will find more information on investing in underlyingStart date Series A shares: May 28, 2012

funds in Investing in other investment funds.Series T shares: May 26, 2014

Type of securities Series A and T shares of a mutual fundcorporation Although up to 100% of the Portfolio’s assets may be invested

Eligible for Yes in underlying funds, the Portfolio may hold a portion of itsRegistered Plans?

assets in cash or money market instruments while seekingPortfolio advisor 1832 Asset Management L.P.

Toronto, Ontario investment opportunities or for defensive purposes.

As part of its mandate, the portfolio advisor uses a taxWhat does the Portfolio invest in? managed strategy in which it seeks to minimize net taxable

income which is accomplished through a yield managementInvestment objectivesstrategy, designed to achieve lower net income, while manag-

The Portfolio’s objective is to achieve a balance of income ing portfolio risk. The yield management strategy entails aand long term capital appreciation, with a bias towards shift in portfolio asset holdings from higher-yielding fixedincome. It invests primarily in a diversified mix of mutual income securities to lower yielding fixed income securitiesfunds, and/or equity securities and/or fixed income securities that have lower volatility. This strategy is a tax-managedlocated anywhere in the world. strategy because it shifts from higher-yielding fixed income

securities to lower-yielding fixed income securities that pro-It may also invest a portion of its assets in units of one orduce less gross income. In order to manage the potentialmore LP Funds which make use of forward contracts, depositchange in volatility resulting from a shift from higher-yield-notes or other derivatives in order to gain exposure to theing fixed income securities to lower-yielding fixed incomereturn of mutual funds managed by the Manager or ansecurities, there may be a shift to lower volatility equityaffiliate thereof.securities.

Any change to the fundamental investment objectives mustUp to 60% of the Portfolio’s assets may be exposed to foreignbe approved by a majority of votes cast at a meeting ofsecurities.securityholders for that purpose.

The Portfolio and each underlying fund may use derivativesInvestment strategies such as options, forward contracts and swaps to hedge

against losses from changes in the prices of investments,The Portfolio is an asset allocation fund that allocates your

commodity prices, interest rates, credit risk, market indicesinvestment between two asset classes: fixed income

or currency exchange rates, to gain exposure to financialand equities.

markets, and to adjust the average term to maturity. Theywill only use derivatives as permitted by securitiesThe table below outlines the target weighting for each assetregulations.class in which the Portfolio invests.

The Portfolio and the underlying funds also may enter intoTargetAsset Class Weighting securities lending transactions, repurchase transactions andFixed Income 60%

reverse repurchase transactions, to the extent permitted byEquities 40%securities regulations, to achieve their investment objectivesand to enhance their returns. For more information aboutThe Portfolio is diversified by asset class, investment style,repurchase, reverse repurchase and securities lending trans-geography and market capitalization and may invest, directlyactions and how the Portfolio limits the risks associated withor indirectly through underlying funds, in a wide variety ofthem see Specific risks of mutual funds – Repurchase andequity and fixed income securities. The underlying funds,reverse repurchase transaction risk.equity securities and fixed income securities in which the

Portfolio invests may change from time to time, but in

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• series riskpurchase. Where the analysis produces an unfavourable out-

• significant securityholder risklook, the issuer is a candidate for a short sale. For a moredetailed description of short selling and the limits within • short selling riskwhich the underlying fund may engage in short selling, • small company riskplease refer to Specific risks of mutual funds – Short

• underlying ETFs riskselling risk.

• U.S. withholding tax riskAdditional information about each underlying fund is set out

You will find details about each risk under Specific risks ofin its simplified prospectus, Fund Facts and annual informa-mutual funds.tion form or in equivalent disclosure documents that the

underlying fund makes available.During the 12 months preceding April 18, 2017, up to 13.6%of the net assets of the portfolio were invested in ScotiaThe Portfolio may invest in other mutual funds that arePrivate Canadian Corporate Bond Pool Series I.managed by us, an affiliate or associate of ours or other

mutual fund managers. You will find more information aboutinvesting in other mutual funds under Investing in other Who should invest in this Portfolio?investment funds.

This Portfolio may be suitable for you if you:

• want a balanced holding with a bias towards fixed incomeWhat are the risks of investing in the Portfolio?securities, which is diversified by asset class, investment

To the extent that the Portfolio invests in or has exposure to style, geography and market capitalization;underlying funds, it has the same risks as the underlying

• are planning to hold your investment in a non-registeredfunds it holds. The Portfolio takes on the risks of an underly-

account;ing fund in proportion to its investment in, or exposure to,

• can accept low to medium risk; andthat fund.• are investing for the medium to long term.

The risks of investing in this Portfolio include the following:Please see Investment risk classification methodology for a• asset-backed and mortgage-backed securities riskdescription of how we determined the classification of this

• class riskPortfolio’s risk level.

• commodity risk

• concentration risk Dividend policy

• credit risk The Portfolio will pay ordinary dividends and/or capital gains• currency risk dividends only when declared by the Board of Directors of

the Corporation. Generally, the Corporation pays any ordi-• derivatives risknary dividend in December and any capital gains dividends

• emerging markets riskwithin 60 days following the year end or at such other times

• equity risk as may be determined by the Board of Directors of theCorporation, but only to the extent necessary to minimize• foreign investment riskthe tax liability of the Corporation.

• fund-of-funds risk

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Investors holding Series T shares will receive stable monthly Portfolio expenses indirectly borne by investorsdistributions, which will likely represent return of capital,

This example shows the Portfolio’s expenses on a $1,000but may also include ordinary dividends and/or capital gains

investment with a 5% annual return.dividends.

Fees and expensesThe dollar amount of the monthly distribution to investors of payable over 1 year 3 years 5 years 10 yearsSeries A shares $ 21.12 66.57 116.67 265.58Series T shares may be reset at the beginning of eachSeries T shares $ 21.22 66.89 117.24 266.87calendar year. The distribution amount will be a factor of the

payout rate for Series T shares (which is currently expectedFor additional information refer to Fees and expenses later into remain at or about 4%) and the number of Series T sharesthis document.of the Portfolio such investors hold at the time of the

distribution.

The payout rate for Series T shares of the Portfolio may beadjusted in the future, if we determine that conditionsrequire an adjustment of distributions or that payment of adistribution would have a negative effect on the investors inthe Portfolio. As a result, the dollar amount of your monthlydistribution is not guaranteed and may change atour discretion.

Investors in Series T shares should not confuse the return ofcapital or dividend distribution with the rate of return oryield of Series T shares.

The payout rate on Series T shares of the Portfolio may begreater than the return on the Portfolio’s investments. Areturn of capital made to you is not taxable, but generallywill reduce the adjusted cost base of your shares for taxpurposes. However, if the distributions are reinvested inadditional shares of the Portfolio, the adjusted cost base willincrease by the amount reinvested.

Please see Income tax considerations for investors for moredetails.


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Scotia INNOVA Balanced Growth Portfolio ClassFund details general we will keep the weighting for each asset class no

more than 20% above or below the amounts set out above.Fund type Asset allocation fund









The Portfolio’s objective is to achieve a balance of income ing portfolio risk. The yield management strategy entails aand long term capital appreciation, with a bias towards shift in portfolio asset holdings from higher-yielding fixedcapital appreciation. It invests primarily in a diversified mix income securities to lower yielding fixed income securitiesof mutual funds, and/or equity securities and/or fixed income that have lower volatility. This strategy is a tax-managedsecurities located anywhere in the world. strategy because it shifts from higher-yielding fixed income


Any change to the fundamental investment objectives mustUp to 80% of the Portfolio’s assets may be exposed to foreignbe approved by a majority of votes cast at a meeting ofsecurities.securityholders called for that purpose.









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underlying fund makes available.Who should invest in this Portfolio?

The Portfolio may invest in other mutual funds that aremanaged by us, an affiliate or associate of ours or other This Portfolio may be suitable for you if you:mutual fund managers. You will find more information about • want a balanced holding with a bias towards equity, whichinvesting in other mutual funds under Investing in other is diversified by asset class, investment style, geographyinvestment funds. and market capitalization;

• are planning to hold your investment in a non-registeredWhat are the risks of investing in the Portfolio?

account;

To the extent that the Portfolio invests in or has exposure to • can accept medium risk; andunderlying funds, it has the same risks as the underlying

• are investing for the medium to long term.funds it holds. The Portfolio takes on the risks of an underly-ing fund in proportion to its investment in, or exposure to, Please see Investment risk classification methodology for athat fund. description of how we determined the classification of this

Portfolio’s risk level.The risks of investing in this Portfolio include the following:

• asset-backed and mortgage-backed securities risk Dividend policy• class risk

The Portfolio will pay ordinary dividends and/or capital gains• commodity risk dividends only when declared by the Board of Directors of• concentration risk the Corporation. Generally, the Corporation pays any ordi-

nary dividend in December and any capital gains dividends• credit riskwithin 60 days following the year end or at such other times

• currency riskas may be determined by the Board of Directors of the

• derivatives risk Corporation, but only to the extent necessary to minimizethe tax liability of the Corporation.• emerging markets risk

• equity risk Investors holding Series T shares will receive stable monthlydistributions, which will likely represent return of capital,• foreign investment riskbut may also include ordinary dividends and/or capital gains

• fund-of-funds riskdividends.

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The dollar amount of the monthly distribution to investors ofSeries T shares may be reset at the beginning of eachcalendar year. The distribution amount will be a factor of thepayout rate for Series T shares (which is currently expectedto remain at or about 5%) and the number of Series T sharesof the Portfolio such investors hold at the time of thedistribution.


Investors Series T shares should not confuse the return ofcapital or dividend distribution with the rate of return oryield of Series T shares.






Fees and expensespayable over 1 year 3 years 5 years 10 yearsSeries A shares $ 22.14 69.80 122.34 278.48Series T shares $ 22.24 70.12 122.90 279.77


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Scotia INNOVA Growth Portfolio ClassFund details general we will keep the weighting for each asset class no

more than 20% above or below the amounts set out above.Fund type Asset allocation portfolio









The Portfolio’s objective is to achieve a balance of long term ing portfolio risk. The yield management strategy entails acapital appreciation and income, with a significant bias shift in portfolio asset holdings from higher-yielding fixedtowards capital appreciation. It invests primarily in a diversi- income securities to lower yielding fixed income securitiesfied mix of mutual funds, and/or equity securities and/or that have lower volatility. This strategy is a tax-managedfixed income securities located anywhere in the world. strategy because it shifts from higher-yielding fixed income


Any change to the fundamental investment objectives mustUp to 100% of the Portfolio’s assets may be exposed to foreignbe approved by a majority of votes cast at a meeting ofsecurities.securityholders for that purpose.









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underlying fund makes available.During the 12 months preceding April 18, 2017, up to 10.5%of the net assets of the portfolio were invested in ScotiaThe Portfolio may invest in other mutual funds that arePrivate International Equity Pool Series I.managed by us, an affiliate or associate of ours or other

mutual fund managers. You will find more information aboutinvesting in other mutual funds under Investing in other Who should invest in this Portfolio?investment funds.

This Portfolio may be suitable for you if you:

• want the growth potential of a balanced holding with aWhat are the risks of investing in the Portfolio?significant bias towards equity, which is diversified by

To the extent that the Portfolio invests in, or has exposure to asset class, investment style, geography and marketunderlying funds, it has the same risks as the underlying capitalization;funds it holds. The Portfolio takes on the risks of an underly-

• are planning to hold your investment in a non-registereding fund in proportion to its investment in, or exposure to,

account;that fund.

• can accept medium risk; andThe risks of investing in this Portfolio include the following:

• are investing for the long term.• asset-backed and mortgage-backed securities risk

Please see Investment risk classification methodology for a• class risk

description of how we determined the classification of this• commodity risk Portfolio’s risk level.

• concentration riskDividend policy• credit risk

• currency risk The Portfolio will pay ordinary dividends and/or capital gainsdividends only when declared by the Board of Directors of• derivatives riskthe Corporation. Generally, the Corporation pays any ordi-

• emerging markets risknary dividend in December and any capital gains dividends

• equity risk within 60 days following the year end or at such other timesas may be determined by the Board of Directors of the• foreign investment riskCorporation, but only to the extent necessary to minimize

• fund-of-funds riskthe tax liability of the Corporation.

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Investors holding Series T shares will receive stable monthlydistributions, which will likely represent return of capital,but may also include ordinary dividends and/or capital gainsdividends.

The dollar amount of the monthly distribution Series Tshares may be reset at the beginning of each calendar year.The distribution amount will be a factor of the payout ratefor Series T shares (which is currently expected to remain ator about 5%) and the number of Series T shares of thePortfolio such investors hold at the time of the distribution.


Investors of Series T shares should not confuse the return ofcapital or dividend distribution with the rate of return oryield of Series T shares.








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Scotia INNOVA Maximum Growth Portfolio ClassFund details that have lower volatility. This strategy is a tax-managed

strategy because it shifts from higher-yielding fixed incomeFund type Asset allocation portfolio

securities to lower-yielding fixed income securities that pro-Start date Series A shares: May 28, 2012

duce less gross income. In order to manage the potentialSeries T shares: May 26, 2014

Type of securities Series A and T shares of a mutual fund change in volatility resulting from a shift from higher-yield-corporation

ing fixed income securities to lower-yielding fixed incomeEligible for Yes

securities, there may be a shift to lower volatility equityRegistered Plans?

Portfolio advisor 1832 Asset Management L.P. securities.Toronto, Ontario

Up to 100% of the Portfolio’s assets may be exposed to foreignsecurities.

What does the Portfolio invest in?

The Portfolio and each underlying fund may use derivativesInvestment objectivessuch as options, forward contracts and swaps to hedge

The Portfolio’s objective is long term capital appreciation. It against losses from changes in the prices of investments,invests primarily in a diversified mix of mutual funds and/or commodity prices, interest rates, credit risk, market indicesequity securities located anywhere in the world. or currency exchange rates, to gain exposure to financial

markets, and to adjust the average term to maturity. TheyAny change to the fundamental investment objectives mustwill only use derivatives as permitted by securitiesbe approved by a majority of votes cast at a meeting ofregulations.securityholders for that purpose.

The Portfolio and the underlying funds also may enter intoInvestment strategies securities lending transactions, repurchase transactions and

reverse repurchase transactions, to the extent permitted byThe Portfolio is an asset allocation fund. The Portfolio’s

securities regulations, to achieve their investment objectivestarget weighting is 100% in equities. The portfolio advisor

and to enhance their returns. For more information aboutmay invest up to 20% of the Portfolio’s assets in fixed income

repurchase, reverse repurchase and securities lending trans-securities and may reduce exposure to equities by up to 20%.

actions and how the Portfolio limits the risks associated withthem see Specific risks of mutual funds – Repurchase andThe Portfolio is diversified by investment style, geographyreverse repurchase transaction risk.and market capitalization and may invest, directly or indi-

rectly through underlying funds, in a wide variety of equityThe Portfolio and the underlying funds may also engage in

and fixed income securities. The underlying funds, equityshort selling on the conditions permitted by Canadian securi-

securities and fixed income securities in which the Portfolioties rules. In determining whether securities of a particular

invests may change from time to time. You will find moreissuer should be sold short, the portfolio advisor utilizes the

information on investing in underlying funds in Investing insame analysis that is described above for deciding whether to

other investment funds.purchase the securities. Where the analysis generally pro-duces a favourable outlook, the issuer is a candidate forAlthough up to 100% of the Portfolio’s assets may be investedpurchase. Where the analysis produces an unfavourable out-in underlying funds, the Portfolio may hold a portion of itslook, the issuer is a candidate for a short sale. For a moreassets in cash or money market instruments while seekingdetailed description of short selling and the limits withininvestment opportunities or for defensive purposes.which the underlying fund may engage in short selling,

As part of its mandate, the portfolio advisor uses a taxplease refer to Specific risks of mutual funds – Short

managed strategy in which it seeks to minimize net taxableselling risk.

income which is accomplished through a yield managementAdditional information about each underlying fund is set outstrategy, designed to achieve lower net income, while manag-in its simplified prospectus, Fund Facts and annual informa-ing portfolio risk. The yield management strategy entails ation form or in equivalent disclosure documents that theshift in portfolio asset holdings from higher-yielding fixedunderlying fund makes available.income securities to lower yielding fixed income securities

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The Portfolio may invest in other mutual funds that are net assets of the portfolio were invested in Scotiamanaged by us, an affiliate or associate of ours or other U.S. Dividend Growers LP Series I, up to 11.1% of the netmutual fund managers. You will find more information about assets of the portfolio were invested in 1832 AM Canadianinvesting in other mutual funds under Investing in other Dividend LP Series I, and up to 10.5% of the net assets of theinvestment funds. portfolio were invested in Scotia Private Canadian Small Cap

Pool Series I.

What are the risks of investing in the Portfolio?Who should invest in this Portfolio?

To the extent that the Portfolio invests in underlying funds,it has the same risks as the underlying funds it holds. The This Portfolio may be suitable for you if you:Portfolio takes on the risks of an underlying fund in propor- • want an all equity holding, which is diversified by invest-tion to its investment in that fund. ment style, geography and market capitalization;

The risks applicable to the Portfolio include: • are planning to hold your investment in a non-registeredaccount;• class risk

• can accept medium to high risk; and• commodity risk• are investing for the long term.• concentration risk

• credit risk Please see Investment risk classification methodology for adescription of how we determined the classification of this• currency riskPortfolio’s risk level.

• derivatives risk

• emerging markets risk Dividend policy• equity risk

The Portfolio will pay ordinary dividends and/or capital gains• foreign investment risk dividends only when declared by the Board of Directors of• fund-of-funds risk the Corporation. Generally, the Corporation pays any ordi-

nary dividend in December and any capital gains dividends• interest rate riskwithin 60 days following the year end or at such other times

• issuer-specific riskas may be determined by the Board of Directors of the

• liquidity risk Corporation, but only to the extent necessary to minimizethe tax liability of the Corporation.• repurchase and reverse repurchase transaction risk

• securities lending risk Investors holding Series T shares will receive stable monthlydistributions, which will likely represent return of capital,• series riskbut may also include ordinary dividends and/or capital gains

• short selling riskdividends.

• significant securityholder riskThe dollar amount of the monthly distribution to investors of

• small company riskSeries T shares may be reset at the beginning of each

• underlying ETFs risk calendar year. The distribution amount will be a factor of the• U.S. withholding tax risk payout rate for Series T shares (which is currently expected

to remain at or about 5%) and the number of Series T sharesYou will find details about each of these risks under Specific

of the Portfolio such investors hold at the time of therisks of mutual funds.

distribution.

During the 12 months preceding April 18, 2017, up to 13.3%The payout rate for Series T shares of the Portfolio may be

of the net assets of the portfolio were invested in Scotiaadjusted in the future, if we determine that conditions

Private International Equity Pool Series I, up to 12.6% of therequire an adjustment of distributions or that payment of a

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distribution would have a negative effect on the investors inthe Portfolio. As a result, the dollar amount of your monthlydistribution is not guaranteed and may change atour discretion.









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Scotia Partners Balanced Income Portfolio ClassPortfolio details Although up to 100% of the Portfolio’s assets may be invested

in underlying funds, the Portfolio may hold a portion of itsFund type Asset allocation portfolio

assets in cash or money market instruments while seekingStart date Series A shares: February 1, 2016

investment opportunities or for defensive purposes.Series T shares: February 1, 2016

Type of securities Series A and Series T shares of a mutualfund corporation As part of its mandate, the portfolio advisor uses a tax

Eligible for Yes managed strategy in which it seeks to minimize net taxableRegistered Plans?

income which is accomplished through a yield managementPortfolio advisor 1832 Asset Management L.P.

Toronto, Ontario strategy, designed to achieve lower net income, while manag-ing portfolio risk. The yield management strategy entails ashift in portfolio asset holdings from higher-yielding fixed

What does the Portfolio invest in?income securities to lower yielding fixed income securities

Investment objectives that have lower volatility. This strategy is a tax-managedstrategy because it shifts from higher-yielding fixed incomeThe Portfolio’s objective is to achieve a balance of incomesecurities to lower-yielding fixed income securities that pro-and long term capital appreciation, with a bias towardsduce less gross income. In order to manage the potentialincome. It invests primarily in a diversified mix of equity andchange in volatility resulting from a shift from higher-yield-income mutual funds managed by other mutual fund manag-ing fixed income securities to lower-yielding fixed incomeers and by us.securities, there may be a shift to lower volatility equity

Any change to the fundamental investment objectives must securities.be approved by a majority of votes cast at a meeting of

Up to 60% of the Portfolio’s assets may be exposed to foreignsecurityholders for that purpose.securities.

Investment strategies The Portfolio and each underlying fund may use derivativessuch as options, forward contracts and swaps to hedge

The Portfolio is an asset allocation fund that allocates youragainst losses from changes in the prices of investments,

investment between two asset classes: fixed incomecommodity prices, interest rates, credit risk, market indices

and equities.or currency exchange rates, to gain exposure to financialmarkets, and to adjust the average term to maturity. TheyThe table below outlines the target weighting for each assetwill only use derivatives as permitted by securitiesclass in which the Portfolio invests.regulations.

TargetAsset Class Weighting The Portfolio and the underlying funds also may enter intoFixed Income 65%

securities lending transactions, repurchase transactions andEquities 35%reverse repurchase transactions, to the extent permitted bysecurities regulations, to achieve their investment objectivesThe Portfolio is diversified by asset class, investment style,and to enhance their returns. For more information aboutgeography and market capitalization and may invest, directlyrepurchase, reverse repurchase and securities lending trans-or indirectly through underlying funds, in a wide variety ofactions and how the Portfolio limits the risks associated withequity and fixed income securities. The underlying funds,them see Specific risks of mutual funds – Repurchase andequity securities and fixed income securities in which thereverse repurchase transaction risk.Portfolio invests may change from time to time, but in

general we will keep the weighting for each asset class no The Portfolio and the underlying funds may also engage inmore than 20% above or below the amounts set out above. short selling on the conditions permitted by Canadian securi-You will find more information on investing in underlying ties rules. In determining whether securities of a particularfunds in Investing in other investment funds. issuer should be sold short, the portfolio advisor utilizes the

same analysis that is described above for deciding whether to

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purchase the securities. Where the analysis generally pro- • securities lending riskduces a favourable outlook, the issuer is a candidate for • series riskpurchase. Where the analysis produces an unfavourable out-

• short selling risklook, the issuer is a candidate for a short sale. For a more

• significant securityholder riskdetailed description of short selling and the limits withinwhich a fund may engage in short selling, please refer to • small company riskSpecific risks of mutual funds – Short selling risk.


Additional information about each underlying fund is set out • U.S. withholding tax riskin its simplified prospectus, Fund Facts and annual informa-

You will find details about each risk under Specific risks oftion form or in equivalent disclosure documents that themutual funds.underlying fund makes available.

During the 12 months preceding April 18, 2017, up to 16.9%The Portfolio may invest in other mutual funds that areof the net assets of the portfolio were invested in Scotiamanaged by us, an affiliate or associate of ours or otherPrivate Canadian Corporate Bond Pool Series I, Up to 13.6%mutual fund managers. You will find more information aboutof the net assets of the portfolio were invested in Dynamicinvesting in other mutual funds under Investing in otherAurion Total Return Bond Fund Series O, up to 13.5% of theinvestment funds.net assets of the portfolio were invested in Scotia CanadianIncome Fund Series I, and up to 10.1% of the net assets of

What are the risks of investing in the Portfolio?the portfolio were invested in PIMCO Monthly Income Fund

To the extent that the Portfolio invests in or has exposure to (Canada) Class I.underlying funds, it has the same risks as the underlyingfunds it holds. The Portfolio takes on the risks of an underly- Who should invest in this Portfolio?ing fund in proportion to its investment in that fund.

This Portfolio may be suitable for you if you:The risks of investing in this Portfolio include the following:

• want a core balanced holding with a bias towards income,• asset-backed and mortgage-backed securities risk which is diversified by asset class, investment style, geog-

raphy and market capitalization;• class risk

• are planning to hold your investment in a non-registered• commodity riskaccount;

• concentration risk• can accept low to medium risk; and

• credit risk• are investing for the medium to long term.

• currency risk

Please see Investment risk classification methodology for a• derivatives riskdescription of how we determined the classification of this

• emerging markets riskPortfolio’s risk level.

• equity risk

• foreign investment risk Dividend policy

• fund-of-funds riskThe Portfolio will pay ordinary dividends and/or capital gains

• income trust risk dividends only when declared by the Board of Directors ofthe Corporation. Generally, the Corporation pays any ordi-• interest rate risknary dividend in December and any capital gains dividends

• issuer-specific riskwithin 60 days following the year end or at such other times

• liquidity risk as may be determined by the Board of Directors of the• repurchase and reverse repurchase transaction risk Corporation, but only to the extent necessary to minimize

the tax liability of the Corporation.

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distribution.






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Scotia Partners Balanced Growth Portfolio ClassPortfolio details Although up to 100% of the Portfolio’s assets may be invested









Investment objectives that have lower volatility. This strategy is a tax-managedstrategy because it shifts from higher-yielding fixed incomeThe Portfolio’s objective is to achieve a balance of incomesecurities to lower-yielding fixed income securities that pro-and long term capital appreciation, with a small bias towardsduce less gross income. In order to manage the potentialcapital appreciation. It invests primarily in a diversified mixchange in volatility resulting from a shift from higher-yield-of equity and income mutual funds managed by other mutualing fixed income securities to lower-yielding fixed incomefund managers and by us.securities, there may be a shift to lower volatility equity


Up to 80% of the Portfolio’s assets may be exposed to foreignsecurityholders called for that purpose.securities.









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During the 12 months preceding April 18, 2017, up to 17.2%The Portfolio may invest in other mutual funds that areof the net assets of the portfolio were invested in Scotiamanaged by us, an affiliate or associate of ours or otherCanadian Income Fund Series I, up to 10.7% of the net assetsmutual fund managers. You will find more information aboutof the portfolio were invested in Scotia Private Canadianinvesting in other mutual funds under Investing in otherCorporate Bond Pool Series I and up to 10.1% of the netinvestment funds.assets of the portfolio were invested in Scotia CanadianDividend Fund Series I.

What are the risks of investing in the Portfolio?

To the extent that the Portfolio invests in or has exposure to Who should invest in this Portfolio?underlying funds, it has the same risks as the underlying

This Portfolio may be suitable for you if you:funds it holds. The Portfolio takes on the risks of an underly-ing fund in proportion to its investment in that fund. • want a core balanced holding, which is diversified by asset

class, investment style, geography and marketThe risks of investing in this Portfolio include the following:

capitalization;• asset-backed and mortgage-backed securities risk

• are planning to hold your investment in a non-registered• class risk account;

• commodity risk • can accept medium risk; and

• concentration risk • are investing for the medium to long term.

• credit riskPlease see Investment risk classification methodology for a

• currency risk description of how we determined the classification of thisPortfolio’s risk level.• derivatives risk

• emerging markets riskDividend policy

• equity riskThe Portfolio will pay ordinary dividends and/or capital gains• foreign investment riskdividends only when declared by the Board of Directors of

• fund-of-funds riskthe Corporation. Generally, the Corporation pays any ordi-

• income trust risk nary dividend in December and any capital gains dividendswithin 60 days following the year end or at such other times• interest rate riskas may be determined by the Board of Directors of the

• issuer-specific riskCorporation, but only to the extent necessary to minimize

• liquidity risk the tax liability of the Corporation.• repurchase and reverse repurchase transaction risk

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distribution.






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Scotia Partners Growth Portfolio ClassPortfolio details Although up to 100% of the Portfolio’s assets may be invested









Investment objectives that have lower volatility. This strategy is a tax-managedstrategy because it shifts from higher-yielding fixed incomeThe Portfolio’s objective is to achieve a balance of incomesecurities to lower-yielding fixed income securities that pro-and long term capital appreciation, with a bias towardsduce less gross income. In order to manage the potentialcapital appreciation. It invests primarily in a diversified mixchange in volatility resulting from a shift from higher-yield-of equity and income mutual funds managed by other mutualing fixed income securities to lower-yielding fixed incomefund managers and by us.securities, there may be a shift to lower volatility equity


Up to 100% of the Portfolio’s assets may be exposed to foreignsecurityholders for that purpose.securities.









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During the 12 months preceding April 18, 2017, up to 10.7%The Portfolio may invest in other mutual funds that areof the net assets of the portfolio were invested in Scotiamanaged by us, an affiliate or associate of ours or otherCanadian Income Fund Series I.mutual fund managers. You will find more information about

investing in other mutual funds under Investing in otherWho should invest in this Portfolio?investment funds.

This Portfolio may be suitable for you if you:What are the risks of investing in the Portfolio?

• want a core balanced holding with a bias towards capitalTo the extent that the Portfolio invests in or has exposure to appreciation, which is diversified by asset class, invest-underlying funds, it has the same risks as the underlying ment style, geography and market capitalization;funds it holds. The Portfolio takes on the risks of an underly- • are planning to hold your investment in a non-registereding fund in proportion to its investment in that fund. account;

The risks of investing in this Portfolio include the following: • can accept medium risk; and

• asset-backed and mortgage-backed securities risk • are investing for the long term.

• class risk Please see Investment risk classification methodology for a• commodity risk description of how we determined the classification of this

Portfolio’s risk level.• concentration risk

• credit riskDividend policy

• currency riskThe Portfolio will pay ordinary dividends and/or capital gains

• derivatives riskdividends only when declared by the Board of Directors of

• emerging markets risk the Corporation. Generally, the Corporation pays any ordi-• equity risk nary dividend in December and any capital gains dividends

within 60 days following the year end or at such other times• foreign investment riskas may be determined by the Board of Directors of the

• fund-of-funds riskCorporation, but only to the extent necessary to minimize

• income trust risk the tax liability of the Corporation.

• interest rate riskInvestors holding Series T shares will receive stable monthly

• issuer-specific risk distributions, which will likely represent return of capital,but may also include ordinary dividends and/or capital gains• liquidity riskdividends.

• repurchase and reverse repurchase transaction risk

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The dollar amount of the monthly distribution to investors ofSeries T shares may be reset at the beginning of eachcalendar year. The distribution amount will be a factor of thepayout rate for Series T shares (which is currently expectedto remain at or about 5%) and the number of Series T sharesof the Portfolio such investors hold at the time of thedistribution.










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Scotia Partners Maximum Growth Portfolio ClassPortfolio details that have lower volatility. This strategy is a tax-managed

strategy because it shifts from higher-yielding fixed incomeFund type Asset allocation portfolio

securities to lower-yielding fixed income securities that pro-Start date Series A shares: February 1, 2016

duce less gross income. In order to manage the potentialSeries T shares: February 1, 2016

Type of securities Series A and Series T shares of a mutual change in volatility resulting from a shift from higher-yield-fund corporation

ing fixed income securities to lower-yielding fixed incomeEligible for Yes

securities, there may be a shift to lower volatility equityRegistered Plans?

Portfolio advisor 1832 Asset Management L.P. securities.Toronto, Ontario

Up to 100% of the Portfolio’s assets may be exposed to foreignsecurities.

What does the Portfolio invest in?

The Portfolio and each underlying fund may use derivativesInvestment objectivessuch as options, forward contracts and swaps to hedge

The Portfolio’s objective is long term capital appreciation. It against losses from changes in the prices of investments,invests primarily in a diversified mix of equity mutual funds commodity prices, interest rates, credit risk, market indicesmanaged by other mutual fund managers and by us. or currency exchange rates, to gain exposure to financial

markets, and to adjust the average term to maturity. TheyAny change to the fundamental investment objectives mustwill only use derivatives as permitted by securitiesbe approved by a majority of votes cast at a meeting ofregulations.securityholders for that purpose.

The Portfolio and the underlying funds also may enter intoInvestment strategies securities lending transactions, repurchase transactions and

reverse repurchase transactions, to the extent permitted byThe Portfolio is an asset allocation fund. The Portfolio’s

securities regulations, to achieve their investment objectivestarget weighting is 100% in equities. The portfolio advisor

and to enhance their returns. For more information aboutmay invest up to 20% of the Portfolio’s assets in fixed income

repurchase, reverse repurchase and securities lending trans-securities and may reduce exposure to equities by up to 20%.

actions and how the Portfolio limits the risks associated withthem see Specific risks of mutual funds – Repurchase andThe Portfolio is diversified by investment style, geographyreverse repurchase transaction risk.and market capitalization and may invest, directly or indi-

rectly through underlying funds, in a wide variety of equityThe Portfolio and the underlying funds may also engage in

and fixed income securities. The underlying funds, equityshort selling on the conditions permitted by Canadian securi-

securities and fixed income securities in which the Portfolioties rules. In determining whether securities of a particular

invests may change from time to time. You will find moreissuer should be sold short, the portfolio advisor utilizes the

information on investing in underlying funds in Investing insame analysis that is described above for deciding whether to

other investment funds.purchase the securities. Where the analysis generally pro-duces a favourable outlook, the issuer is a candidate forAlthough up to 100% of the Portfolio’s assets may be investedpurchase. Where the analysis produces an unfavourable out-in underlying funds, the Portfolio may hold a portion of itslook, the issuer is a candidate for a short sale. For a moreassets in cash or money market instruments while seekingdetailed description of short selling and the limits withininvestment opportunities or for defensive purposes.which a fund may engage in short selling, please refer to

As part of its mandate, the portfolio advisor uses a taxSpecific risks of mutual funds – Short selling risk.

managed strategy in which it seeks to minimize net taxableAdditional information about each underlying fund is set outincome which is accomplished through a yield managementin its simplified prospectus, Fund Facts and annual informa-strategy, designed to achieve lower net income, while manag-tion form or in equivalent disclosure documents that theing portfolio risk. The yield management strategy entails aunderlying fund makes available.shift in portfolio asset holdings from higher-yielding fixed

income securities to lower yielding fixed income securities

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The Portfolio may invest in other mutual funds that are You will find details about each risk under Specific risks ofmanaged by us, an affiliate or associate of ours or other mutual funds.mutual fund managers. You will find more information about

During the 12 months preceding April 18, 2017, up to 12.7%investing in other mutual funds under Investing in other

of the net assets of the portfolio were invested in Dynamicinvestment funds.

Value Fund of Canada Series O and up to 12.7% of the netassets of the portfolio were invested in CI Cambridge Cana-

What are the risks of investing in the Portfolio?dian Equity Corporate Class, Class I.

To the extent that the Portfolio invests in or has exposure toAs at April 18, 2017, one investor held approximately 13.1% of

underlying funds, it has the same risks as the underlyingthe outstanding shares of the fund.

funds it holds. The Portfolio takes on the risks of an underly-ing fund in proportion to its investment in that fund.

Who should invest in this Portfolio?The risks of investing in this Portfolio include the following:

This Portfolio may be suitable for you if you:• asset-backed and mortgage-backed securities risk

• want primarily an all equity holding, which is diversified• class risk by investment style, geography and market capitalization;• commodity risk • are planning to hold your investment in a non-registered• concentration risk account;

• credit risk • can accept medium to high risk; and

• currency risk • are investing for the long term.

• derivatives risk Please see Investment risk classification methodology for a• emerging markets risk description of how we determined the classification of this

Portfolio’s risk level.• equity risk

• foreign investment riskDividend policy

• fund-of-funds riskThe Portfolio will pay ordinary dividends and/or capital gains

• income trust riskdividends only when declared by the Board of Directors of

• interest rate risk the Corporation. Generally, the Corporation pays any ordi-• issuer-specific risk nary dividend in December and any capital gains dividends

within 60 days following the year end or at such other times• liquidity riskas may be determined by the Board of Directors of the

• repurchase and reverse repurchase transaction riskCorporation, but only to the extent necessary to minimize

• securities lending risk the tax liability of the Corporation.

• series riskInvestors holding Series T shares will receive stable monthly

• short selling risk distributions, which will likely represent return of capital,but may also include ordinary dividends and/or capital gains• significant securityholder riskdividends.

• small company risk

The dollar amount of the monthly distribution to investors of• underlying ETFs riskSeries T shares may be reset at the beginning of each

• U.S. withholding tax riskcalendar year. The distribution amount will be a factor of thepayout rate for Series T shares (which is currently expectedto remain at or about 5%) and the number of Series T shares

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of the Portfolio such investors hold at the time of thedistribution.










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What is a mutual fund and what are the risks of investing in amutual fund?For many Canadians, mutual funds represent a simple and Under exceptional circumstances, a mutual fund may sus-affordable way to meet their financial goals. But what exactly pend your right to sell your securities. See Suspending youris a mutual fund, why invest in them, and what are the risks? right to buy, switch and sell shares for details.

What is a mutual fund? How mutual funds are structured?

A mutual fund is an investment that pools your money with 1832 LP offers the Trust Funds, which are mutual fundthe money of many other people. Professional portfolio advi- trusts, and the Corporate Funds, which are classes of thesors use that money to buy securities that they believe will Corporation, a mutual fund corporation. Mutual funds ownhelp achieve the mutual fund’s investment objectives. These different kinds of investments depending on their objectives.securities could include stocks, bonds, mortgages, money These include equities, like stocks, fixed income securitiesmarket instruments, or a combination of these. like bonds and cash or cash equivalents like treasury bills, or

units of other mutual funds, called underlying funds. TheWhen you invest in a mutual fund, you receive securities of

Trust Funds invest in securities, which may include securi-the mutual fund. Each security represents a proportionate

ties of other mutual funds that are trusts or corporations.share of all of the mutual fund’s assets. All of the investors in

The Corporate Funds invest in securities, which may includea mutual fund share in the mutual fund’s income, gains and

securities of other mutual funds that are trusts, corporationslosses. Investors also pay their share of the mutual fund’s

or limited partnerships, such as the LP Funds. None ofexpenses.

the LP Funds is offered directly to investors. The LP Fundsare only available for purchase by other ScotiaFunds. For

Why invest in mutual funds? additional information please refer to the simplified prospec-tus of the LP Funds. All of these forms of mutual funds allowMutual funds offer investors three key benefits: professionalthe pooling of money by all investors, however, there are amoney management, diversification and accessibility.few differences you should know about:

• Professional money management. Professional portfolio• You buy ‘‘units’’ of a mutual fund trust and ‘‘shares’’ of aadvisors have the expertise to make the investment deci-

mutual fund corporation. Units and shares both representsions. They also have access to up-to-the-minute informa-ownership.tion on trends in the financial markets, and in-depth data

and research on potential investments. • If a mutual fund corporation has more than one invest-ment objective, each investment objective is represented• Diversification. Because your money is pooled with thatby a separate class of shares. Each class of shares is aof other investors, a mutual fund offers diversification intoseparate mutual fund. Shares are issued and redeemed onmany securities that may not have otherwise been availa-the basis of the net asset value of the class.ble to individual investors.

• A mutual fund trust has only one investment objective.• Accessibility. Mutual funds have low investment mini-mums, making them accessible to nearly everyone. • Both classes of a mutual fund corporation and mutual

fund trusts offer different series of securities, each ofwhich has different features, including some that offerNo guaranteesdistributions of capital. You will find more information

While mutual funds have many benefits, it is important to about the different series of shares of a Fund underremember that an investment in a mutual fund is not Purchases, switches and redemptions.guaranteed. Unlike bank accounts or guaranteed investment

• When you switch between series of the same class of acertificates, mutual fund securities are not covered by the

mutual fund corporation or between two classes of theCanada Deposit Insurance Corporation or any other govern-

same mutual fund corporation, this is called a conversion.ment deposit insurer, and your investment in the Funds is

Under current income tax rules, a conversion is generallynot guaranteed by The Bank of Nova Scotia.

not considered a disposition for tax purposes so no taxesare payable solely as a result of the conversion. A switch

45

between different classes of a mutual fund corporation than capital gains if it pays sufficient capital gains divi-will be considered for income tax purposes to be a disposi- dends. Any income taxes payable by a mutual fund corpo-tion at fair market value. Accordingly, you will realize a ration on its income will be allocated amongst all or onecapital gain or a capital loss if you switch your shares from or more classes in a manner determined by the Board ofone Corporate Fund to another Corporate Fund. Directors of the Corporation, in its sole discretion. As a

result, the assets of a Corporate Fund may be used to• A mutual fund corporation may decide to sell a particularsatisfy the taxes payable allocated to it by the Corporation.investment for a variety of reasons such as for investmentA mutual fund corporation typically pays out sufficientreasons, in order to raise money to pay the redemptionordinary dividends to recover tax it pays on dividendsprice to shareholders who redeem their investment in thereceived from taxable Canadian corporations. A mutualmutual fund corporation or to support the investmentfund trust will not pay taxes on any source of income orobjective of a class that investors switch to. Each class willcapital gains as long as it distributes its net taxablesatisfy any switches or redemptions first from the cash onincome to securityholders. Both mutual fund corporationshand that is attributable to that class. If the level ofand mutual fund trusts may pay dividends or distributions,switches and redemptions in a class at any particularas may be the case, out of capital.point in time is greater than the cash on hand of the class,

portfolio investments attributable to the class may have to • While the investment objective of a mutual fund trust andbe sold in connection with such switches or redemptions. a class of the mutual fund corporation may be identical,This may give rise to capital gains to the mutual corpora- the performance of the respective funds may not be identi-tion and may cause the corporation to pay capital gains cal. While the portfolio advisor will generally seek to fairlydividends to its shareholders. As a result, shareholders allocate portfolio investments between the funds, timingmay have to pay taxes as a result of such switches differences will occur in available cash flow to each fund.or redemptions. As a consequence, the price at which a portfolio invest-

ment may be bought or sold for one fund may differ from• A mutual fund corporation is a single entity and taxpayerthe other fund or some of the investments in the fundsregardless of how many classes it offers. The mutual fundmay not be the same.corporation must consolidate its income, capital gains,

expenses and capital losses from all the investments madeWhat are the risks?for all classes in order to determine the amount of tax

payable. For example, capital gains of one class are offsetWhile everyone wants to make money when they invest, you

by capital losses of another class. With mutual fund trusts,could lose money, too. This is known as risk. Like other

the capital losses of one mutual fund trust cannot beinvestments, mutual funds involve some level of risk. The

offset against the capital gains of another mutual fundvalue of a Fund’s securities can change from day to day for

trust. Mutual fund trusts are separate entitiesmany reasons, including changes in the economy, interest

and taxpayers.rates, and market and company news. That means the value

• Assets and liabilities of a mutual fund corporation are of mutual fund securities can vary. When you sell yourallocated either to a specific class or shared amongst securities in a Fund, you could receive less money thanmultiple classes, depending on the nature of the asset or you invested.liability. The Corporation will allocate all of the invest-

The amount of risk depends on the Fund’s investment objec-ments made with subscriptions for a Corporate Fund totives and the types of securities it invests in. A general rulethat Corporate Fund, and expenses related to acquiringof investing is that the higher the risk, the higher thethose investments to that Corporate Fund. The Corpora-potential for gains as well as losses. Cash equivalent fundstion will determine the allocation of other assets andusually offer the least risk because they invest in highlyliabilities, to a Corporate Fund or among the Corporateliquid, short term investments such as treasury bills. TheirFunds in a manner that is fair and reasonable.potential returns are tied to short term interest rates.

• A mutual fund corporation pays dividends out of income orIncome funds invest in bonds and other fixed income invest-

capital gains, while a mutual fund trust pays distributionsments. These funds typically have higher long-term returns

out of income or capital gains. Unlike mutual fund trustthan cash equivalent funds, but they carry more risk because

distributions, dividends are not generally declared regu-their prices can change when interest rates change. Equity

larly by a mutual fund corporation. A mutual fund corpora-funds expose investors to the highest level of risk because

tion will have to pay tax on all sources of income otherthey invest in equity securities, such as common shares,

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whose prices can rise and fall significantly in a short period Class riskof time.

Each class of shares of the Corporation represents a separateportfolio of securities which is managed under distinct

Managing riskinvestment objectives which are not shared with other clas-ses of shares of the Corporation. The liabilities attributed toWhile risk is an important factor to consider when you areeach class of shares of the Corporation are liabilities of thechoosing a mutual fund, you should also think about yourCorporation as a whole. If the assets attributed to one classinvestment goals and when you will need your money. Forof shares of the Corporation are insufficient, assets attrib-example, if you are saving for a large purchase in the nextuted to other classes may have to be used to cover theseyear or so, you might consider investing in a Fund with lowliabilities. Although the portfolios are different, and therisk. If you want your retirement savings to grow over thevalue of each class is calculated separately, there is a risknext 20 years, you can probably afford to put more of yourthat the expenses or liabilities of one class may affect themoney in equity funds.value of the other classes.

A carefully chosen mix of investments can help reduce riskas you meet your investment goals. Your registered invest-

Commodity riskment professional can help you build an investment portfoliothat is suited to your goals and risk comfort level. Some of the Funds may invest directly or indirectly in gold or

in companies engaged in the energy or natural resourceIf your investment goals or tolerance for risk changes,

industries. The market value of such a mutual fund’s invest-remember, you can and should change your investments to

ments may be affected by adverse movements in commoditymatch your new situation.

prices. When commodity prices decline, this generally has anegative impact on the earnings of companies whose busi-

Specific risks of mutual funds ness is based in commodities, such as oil and gas.

The value of the investments a mutual fund holds canConcentration riskchange for a number of reasons. You will find the specific

risks of investing in each of the Funds in the individual fundIf the holdings of a Fund in one issuer exceed 10% of the

descriptions section. This section tells you more about eachFund’s assets, it is possible that the Fund may experience

risk. To the extent that a Fund invests in or has exposure toreduced liquidity and diversification. Additionally, if the

underlying funds, it has the same risks as its underlyingFund holds significant investments in a few companies,

funds. Accordingly, any reference to a Fund in this section ischanges in the value of the securities of those companies

intended to also refer to any underlying funds that a Fundmay increase the volatility of the net asset value of the Fund.

may invest in.

Credit riskAsset-backed and mortgage-backed securities risk

A fixed income security, such as a bond, is a promise to payAsset-backed securities are debt obligations that are backed

interest and repay the principal on the maturity date. Thereby pools of consumer or business loans. Mortgage-backed

is always a risk that the issuer will fail to honour thatsecurities are debt obligations backed by pools of mortgages

promise. This is called credit risk. To the extent that a Fundon commercial or residential real estate. To the extent that a

invests in fixed income securities, it will be sensitive tomutual fund invests in these securities, it will be sensitive to

credit risk. Credit risk is lowest among issuers that have aasset-backed and mortgage-backed securities risk. If there

high credit rating from a credit rating agency. It is highestare changes in the market perception of the issuers of these

among issuers that have a low credit rating or no credittypes of securities, or in the creditworthiness of the parties

rating. Issuers with a low credit rating usually offer higherinvolved, then the value of the securities may be affected.

interest rates to make up for the higher risk. The bonds ofWhen investing in mortgage-backed securities, there is also a

issuers with poor credit ratings generally have yields that arerisk that there may be a drop in the interest rates charged on

higher than bonds of issuers with superior credit ratings.mortgages, a mortgagor may default on its obligations under

Bonds of issuers that have poor credit ratings tend to bea mortgage or there may be a drop in the value of the

more volatile as there is a greater likelihood of bankruptcy orproperty secured by the mortgage.

default. Credit ratings may change over time. Please see

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Foreign investment risk in the case of investments in debt counterparty, the mutual fund may bear the risk of loss ofissued by foreign companies or governments. the amount expected to be received under options, for-

ward contracts or other transactions.

Currency risk • Derivatives trading on foreign markets may take longerand be more difficult to complete. Foreign derivatives are

When a Fund buys an investment that is denominated in asubject to the foreign investment risks described below.

foreign currency, changes in the exchange rate between thatPlease see Foreign investment risk.

currency and the Canadian dollar will affect the value of the• Investment dealers and futures brokers may hold a mutualmutual fund.

fund’s assets as collateral in a derivative contract. As aresult, someone other than the mutual fund’s custodian isDerivatives riskresponsible for the safekeeping of that part of the mutual

To the extent that a Fund uses derivatives, it will be sensi- fund’s assets.tive to derivatives risk. Derivatives can be useful for hedging

• The regulation of derivatives is a rapidly changing area ofagainst losses, gaining exposure to financial markets and

law and is subject to modification by government andmaking indirect investments, but they involve certain risks:

judicial action. The effect of any future regulatory changes• Hedging with derivatives may not achieve the intended may make it more difficult, or impossible, for a mutual

result. Hedging instruments rely on historical or antici- fund to use certain derivatives.pated correlations to predict the impact of certain events,

• Changes in domestic and foreign tax laws, regulatory laws,which may or may not occur. If they occur, they may not

or the administrative practices or policies of a tax orhave the predicted effect.

regulatory authority may adversely affect a Fund and its• It is difficult to hedge against trends that the market has investors. For example, the domestic and foreign tax and

already anticipated. regulatory environment for derivative instruments is evolv-ing, and changes in the taxation or regulation of derivative• Costs relating to entering and maintaining derivativesinstruments may adversely affect the value of derivativecontracts may reduce the returns of a mutual fund.instruments held by a Fund and the ability of a Fund to

• A currency hedge will reduce the benefits of gains if thepursue its investment strategies. Interpretation of the law

hedged currency increases in value.and the application of administrative practices or policies

• Currency hedging can be difficult in smaller emerging by a taxation authority may also affect the characteriza-growth countries because of the limited size of tion of a Fund’s earnings as capital gains or income. Inthose markets. such a case, the net income of a Fund for tax purposes

• Currency hedging provides no protection against changes and the taxable component of distributions to investorsin the value of the underlying securities. could be determined to be more than originally reported,

with the result that investors or the Fund could be liable• There is no guarantee that a liquid exchange or market forto pay additional income tax. Any liability imposed on aderivatives will exist. This could prevent a mutual fundFund may reduce the value of the Fund and the value offrom closing out its positions to realize gains or limitan investor’s investment in a Fund.losses. At worst, a mutual fund might face losses from

having to exercise underlying futures contracts.Emerging markets risk

• The prices of derivatives can be distorted if trading intheir underlying stocks is halted. Trading in the derivative Some mutual funds may invest in foreign companies ormight be interrupted if trading is halted in a large number governments (other than the U.S.) which may be located inof the underlying stocks. This would make it difficult for a or operate in developing countries. Companies in thesemutual fund to close out its positions. markets may have limited product lines, markets or

resources, making it difficult to measure the value of the• The counterparty in a derivatives contract might not becompany. Political instability, possible corruption, as well asable to meet its obligations. When using derivatives, alower standards of business regulation increase the risk ofmutual fund relies on the ability of the counterparty to thefraud and other legal issues. In addition to foreign invest-transaction to perform its obligations. In the event that ament risk described below, these mutual funds may becounterparty fails to complete its obligations, for example,exposed to greater volatility as a result of such issues.in the event of the default or bankruptcy of a

48

Equity risk including supply contracts, the cancellation by a major cus-tomer of its contract or significant litigation.

Funds that invest in equities, such as common shares, areaffected by changes in the general economy and financial The governing law of the income trust may not limit, or maymarkets, as well as by the success or failure of the companies not fully limit, the liability of investors in the income trust,that issued the securities. When stock markets rise, the including a Fund that invests in the income trust, for claimsvalue of equity securities tends to rise. When stock markets against the income trust. In such cases, to the extent thatfall, the value of equity securities tends to fall. Convertible claims, whether in contract, in tort or as a result of tax orsecurities may also be subject to interest rate risk. statutory liability against the income trust are not satisfied

by the income trust, investors in the income trust, includinga Fund that invests in the income trust, could be held liableForeign investment riskfor such obligations. Income trusts generally seek to make

Investments issued by foreign companies or governments this risk remote in the case of contract by including provi-other than the U.S. can be riskier than investments in sions in their agreements that provide that the obligations ofCanada and the U.S. the income trust will not be binding on investors. However,

investors in the income trust, including a Fund that investsForeign countries can be affected by political, social, legal orin the income trust, would still have exposure to damagediplomatic developments, including the imposition of cur-claims not mitigated contractually, such as personal injuryrency and exchange controls. Some foreign markets can beand environmental claims.less liquid, are less regulated, and are subject to different

reporting practices and disclosure requirements than issuers As the income tax treatment in Canada of certain publiclyin North American markets. It may be more difficult to traded income trusts (other than certain REITs) hasenforce a mutual fund’s legal rights in jurisdictions outside changed, many income trusts have converted or may convertof Canada. In general, securities issued in more developed to corporations, which has had, and may continue to have, anmarkets, such as Western Europe, have lower foreign invest- effect on the trading price of such trusts.ment risk. Securities issued in emerging or developing mar-kets, such as Southeast Asia or Latin America, have signifi-

Interest rate riskcant foreign investment risk and are exposed to the emergingmarkets risks described above. Mutual funds that invest in fixed income securities, such as

bonds, mortgages and money market instruments, are sensi-tive to changes in interest rates. In general, when interestFund-of-funds riskrates are rising, the value of these investments tends to fall.

If a Fund invests in, or has exposure to, another investment When rates are falling, fixed income securities tend tofund, the risks associated with investing in that Fund include increase in value. Fixed income securities with longer termsthe risks associated with the securities in which that Fund to maturity are generally more sensitive to changes in inter-invests, along with the other risks of the Fund. Accordingly, a est rates. Certain types of fixed income securities permitFund takes on the risk of another investment fund and its issuers to repay principal before the security’s maturity date.respective securities in proportion to its investment in, or There is a risk that an issuer will exercise this prepaymentexposure to, that other investment fund. If the other invest- right after interest rates have fallen and the mutual fundsment fund suspends redemptions, the Fund that invests in, that hold these fixed income securities will receive paymentsor has exposure to, the other mutual fund may be unable to of principal before the expected maturity date of the securityvalue part of its portfolio and may be unable to process and may need to reinvest these proceeds in securities thatredemption orders. have lower interest rates.

Income trust risk Issuer-specific risk

An income trust, including a REIT, generally holds debt The market value of an individual issuer’s securities can beand/or equity securities of an underlying active business or is more volatile than the market as a whole. As a result, if aentitled to receive a royalty on revenues generated by such single issuer’s securities represent a significant portion ofbusiness. Distributions and returns on income trusts are the market value of a mutual fund’s assets, changes in theneither fixed nor guaranteed. Income trusts are subject to market value of that issuer’s securities may cause greaterthe risks of the particular type of underlying business, fluctuation in the mutual fund’s value than would normally

49

be the case. A less-diversified mutual fund may also suffer investment grade securities or cash with a value of at leastfrom reduced liquidity if a significant portion of its assets is 102% of the market value of the securities subject to theinvested in any one issuer. In particular, the mutual fund transaction. A Fund will enter into repurchase or reversemay not be able to easily liquidate its position in the issuers repurchase agreements only with parties that we believe,as required to mutual fund redemption requests. through conducting credit evaluation, have adequate

resources and financial ability to meet their obligationsGenerally, mutual funds are not permitted to invest more

under such agreements. Prior to entering into a repurchasethan 10% of their net assets in any one issuer. This restric-

agreement, a Fund must ensure that the aggregate value oftion does not apply to investments in debt securities issued

the securities that have been sold pursuant to repurchaseor guaranteed by the Canadian or U.S. government, securi-

transactions, together with any securities loaned pursuant toties issued by a clearing corporation, securities issued by

securities lending transactions, will not exceed 50% of themutual funds that are subject to the requirements of

net asset value of the Fund immediately after the FundNational Instrument 81-102 – Investment Funds

enters into the transaction.(‘‘NI 81-102’’) and National Instrument 81-101 – MutualFund Prospectus Disclosure, or index participation units

Securities lending riskissued by a mutual fund.

Some mutual funds may enter into securities lending trans-Liquidity risk actions to generate additional income from securities held in

a mutual fund’s portfolio. In lending its securities, a mutualLiquidity is a measure of how quickly an investment can be

fund is exposed to the risk that the borrower may not be ablesold for cash at a fair market price. If a mutual fund cannot

to satisfy its obligations under the securities lending agree-sell an investment quickly, it may lose money or make a

ment and the mutual fund is forced to take possession of thelower profit, especially if it has to meet a large number of

collateral held. Losses could result if the collateral held byredemption requests. In general, investments in smaller com-

the mutual fund is insufficient, at the time the remedy ispanies, smaller markets or certain sectors of the economy

exercised, to replace the securities borrowed. To addresstend to be less liquid than other types of investments. The

these risks, any securities lending transactions entered intoless liquid an investment, the more its value tends

by a Fund will comply with applicable securities laws, includ-to fluctuate.

ing the requirement that each agreement be, at a minimum,fully collateralized by investment grade securities or cash

Repurchase and reverse repurchase transaction with a value of at least 102% of the market value of therisk

securities subject to the transaction. A Fund will enter intosecurities lending transactions only with parties that weSome Funds may enter into repurchase or reverse repur-believe, through conducting credit evaluation, have adequatechase transactions to generate additional income. When aresources and financial ability to meet their obligationsFund agrees to sell a security at one price and buy it back onunder such agreements. Prior to entering into a securitiesa specified later date from the same party with the expecta-lending agreement, a Fund must ensure that the aggregatetion of a profit, it is entering into a repurchase agreement.value of the securities loaned, together with those that haveWhen a Fund agrees to buy a security at one price and sell itbeen sold pursuant to repurchase transactions, does notback on a specified later date to the same party with theexceed 50% of the net asset value of the Fund immediatelyexpectation of a profit, it is entering into a reverse repur-after the Fund enters into the transaction.chase transaction. Funds engaging in repurchase and reverse

repurchase transactions are exposed to the risk that theother party to the transaction may become insolvent and Series riskunable to complete the transaction. In those circumstances,

Some mutual funds offer more than one series of securitiesthere is a risk that the value of the securities bought may

of the same mutual fund. Although the value of each series isdrop or the value of the securities sold may rise between the

calculated separately, there is a risk that the expenses ortime the other party becomes insolvent and the time the

liabilities of one series of securities may affect the value ofFund recovers its investment. To limit the risks associated

the other series. If one series is unable to cover its liabilities,with repurchase and reverse repurchase transactions, any

the other series are legally responsible for covering thesuch transactions entered into by a Fund will comply with

difference. We believe that this risk is very low.applicable securities laws, including the requirement thateach agreement be, at a minimum, fully collateralized by

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Short selling risk Small company risk

Certain Funds may engage in a limited amount of short The prices of shares issued by smaller companies tend toselling. A ‘‘short sale’’ is where a mutual fund borrows securi- fluctuate more than those of larger corporations. Smallerties from a lender which are then sold in the open market companies may not have established markets for their prod-(or ‘‘sold short’’). At a later date, the same number of ucts and may not have solid financing. These companiessecurities are repurchased by the mutual fund and returned generally issue fewer shares, which increases theirto the lender. In the interim, the proceeds from the first sale liquidity risk.are deposited with the lender and the Fund pays interest tothe lender. If the value of the securities declines between the Underlying ETFs risktime that the mutual fund borrows the securities and the

Certain Funds may invest in securities of exchange-tradedtime it repurchases and returns the securities, the mutualFunds (‘‘ETFs’’). The risks of each such ETF will be depen-fund makes a profit for the difference (less any interest thedent on the structure and underlying investments of the ETF.mutual fund is required to pay to the lender). Short sellingThe trading price of the units or shares of ETFs will fluctu-involves certain risks. There is no assurance that securitiesate in accordance with changes in the ETFs’ net asset value,will decline in value during the period of the short saleas well as market supply and demand on the stock exchangesufficient to offset the interest paid by the Fund and make aon which they are listed. Units or shares of an ETF may tradeprofit for the Fund, and securities sold short may insteadin the market at a premium or discount to the ETF’s netappreciate in value. The Fund also may experience difficul-asset value per unit or share and there can be no assuranceties repurchasing and returning the borrowed securities if athat units or shares will trade at prices that reflect their netliquid market for the securities does not exist. The lenderasset value.from whom the Fund has borrowed securities may go bank-

rupt and the Fund may lose the collateral it has depositedU.S. withholding tax riskwith the lender. Each Fund that engages in short selling will

adhere to controls and limits that are intended to offsetGenerally, the Foreign Account Tax Compliance provisions of

these risks by short selling only securities of larger issuersthe U.S. Hiring Incentives to Restore Employment Act of

for which a liquid market is expected to be maintained and2010 (or ‘‘FATCA’’) impose a 30% withholding tax on

by limiting the amount of exposure for short sales. Such‘‘withholdable payments’’ made to a mutual fund, unless the

Funds also will deposit collateral only with lenders that meetmutual fund enters into a FATCA agreement with the

certain criteria for creditworthiness and only up toU.S. Internal Revenue Service (the ‘‘IRS’’) (or is subject to

certain limits.an intergovernmental agreement as described below) tocomply with certain information reporting and other require-

Significant securityholder risk ments. Compliance with FATCA will in certain cases requirea mutual fund to obtain certain information (includingSecurities of mutual funds may be purchased and sold byaccount balances) from certain investors and (where appli-large investors, including other funds. If a large investorcable) their beneficial owners (including information regard-redeems a portion or all of its investment from an underlyinging their identity, residency and citizenship) and to disclosefund, that underlying fund may have to incur capital gainssuch information and documentation to the IRS.and other transaction costs in the process of making the

redemption. In addition, some securities may have to be sold Under the terms of the intergovernmental agreementat unfavourable prices, thus reducing the underlying fund’s between Canada and the U.S. to provide for the implementa-potential return. Conversely, if a large investor were to tion of FATCA (the ‘‘Canada-U.S. IGA’’), and its implementingincrease its investment in an underlying fund, that underly- provisions under the Tax Act, a Fund will be treated asing fund may have to hold a relatively large position in cash complying with FATCA and not subject to the 30% withhold-for a period of time until the portfolio adviser finds suitable ing tax if the Fund complies with the terms of theinvestments, which could also negatively impact the perform- Canada-U.S. IGA. Under the terms of the Canada-U.S. IGA, aance of the underlying fund. Since the performance of the Fund will not have to enter into an individual FATCA agree-underlying fund may be negatively impacted, so may the ment with the IRS but the Fund will be required to registerinvestment return of any remaining investors in the underly- with the IRS and to report certain information on accountsing fund, including other top funds which may still be held by U.S. persons owning, directly or indirectly, an interestinvested in the underlying fund. in the Fund, or held by certain other persons or entities. In

51

addition, the Fund may also be required to report certaininformation on accounts held by investors that did notprovide the required residency and identity information,through the dealer, to the Fund. The Fund will not have toprovide information directly to the IRS but instead will berequired to report information to the Canada RevenueAgency (the ‘‘CRA’’). The CRA will in turn exchange informa-tion with the IRS under the existing provisions of theCanada-U.S. Income Tax Convention. The Canada-U.S. IGAsets out specific accounts that are exempt from beingreported, including certain tax deferred plans. By investingin a Fund the investor is deemed to consent to the Funddisclosing such information to the CRA. If a Fund is unableto comply with any of its obligations under theCanada-U.S. IGA, the imposition of the 30% U.S. withholdingtax may affect the net asset value of the Fund and may resultin reduced investment returns to securityholders. It is possi-ble that the administrative costs arising from compliancewith FATCA and/or the Canada-U.S. IGA and future guidancemay also cause an increase in the operating expenses of aFund. The Funds may also be subject to the penalty provi-sions of the Tax Act.

Withholdable payments include (i) certain U.S. sourceincome (such as interest, dividends and other passiveincome) and (ii) gross proceeds from the sale or dispositionof property that can produce U.S. source interest or divi-dends. The withholding tax applies to withholdable paymentsmade on or after July 1, 2014 (or January 1, 2019 in the caseof gross proceeds). The 30% withholding tax may also applyto any ‘‘foreign passthru payments’’ paid by a mutual fund tocertain investors on or after January 1, 2019. The scope offoreign passthru payments will be determined under theU.S. Treasury regulations that have yet to be issued.

The foregoing rules and requirements may be modified byfuture amendments of the Canada-U.S. IGA and its imple-mentation provisions under the Tax Act, future U.S. Treasuryregulations, and other guidance.

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Organization and management of the Funds

Manager As manager, we are responsible for the overall business and operation of the Funds. This includes:

• providing or arranging for portfolio advisory services1832 Asset Management L.P.1 Adelaide Street East • providing or arranging for administrative services.28th Floor

The general partner of the Manager, 1832 Asset Management L.P., is wholly-owned by The Bank of Nova Scotia.Toronto, OntarioM5C 2V9

Board of directors The Board is responsible for the oversight of the Corporation.

The Board is currently comprised of four members, two of whom are not officers or employees of theCorporation. Additional information concerning the Board, including the names of its members, and governanceof the Corporation is available in the annual information form.

Principal distributor Scotia Securities Inc. is the principal distributor of the Series A and Series T shares offered under this simplifiedprospectus. As principal distributor, Scotia Securities Inc. markets and sells the Series A and Series T shares. We, or

Scotia Securities Inc.Scotia Securities Inc., may hire participating dealers to assist in the sale of the Funds.

Toronto, OntarioScotia Securities Inc. is a wholly-owned subsidiary of The Bank of Nova Scotia, which is the parent company of1832 Asset Management L.P.

Custodian The custodian holds the investments of the Funds and keeps them safe to ensure that they are used only for thebenefit of investors. The Bank of Nova Scotia is the parent company of 1832 Asset Management L.P.

The Bank of Nova ScotiaToronto, Ontario

Securities Lending In the event a Fund engages in a securities lending transaction, repurchase transaction or reverse repurchaseAgent transaction, then The Bank of Nova Scotia will be appointed as the Fund’s securities lending agent. The securities

lending agent will act on behalf of the Fund in administering the securities lending transactions, repurchaseThe Bank of Nova Scotiatransactions and reverse repurchase transactions entered into by the Fund.Toronto, OntarioThe general partner of the Manager, 1832 Asset Management G.P. Inc., is wholly-owned by The Bank of NovaScotia.

Registrar As registrar, we make arrangements to keep a record of all securityholders of the Funds, process orders and issuetax slips to securityholders.

1832 Asset Management L.P.Toronto, Ontario

Auditor The auditor is an independent firm of chartered professional accountants. The firm audits the annual financialstatements of the Funds and provides an opinion as to whether they are fairly presented in accordance with

PricewaterhouseCoopers LLPInternational Financial Reporting Standards.

Toronto, Ontario

Portfolio advisor The portfolio advisor provides investment advice and makes the investment decisions for the Funds. You will findthe portfolio advisor for each Fund in the Fund descriptions starting at page 4.

1832 Asset Management L.P.1832 Asset Management L.P. is wholly-owned by The Bank of Nova Scotia.Toronto, Ontario

Portfolio sub-advisors We have authority to retain portfolio sub-advisors. The sub-advisor provides investment advice and makes theinvestment decisions for certain of the Funds.

You will find the portfolio advisor for each Fund in the Fund descriptions starting on page 4.

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Independent Review The Manager has established an independent review committee (‘‘IRC’’) in accordance with NationalCommittee Instrument 81-107 – Independent Review Committee for Investment Funds (‘‘NI 81-107’’) with a mandate

to review and provide recommendations or approval, as required, on conflict of interest matters referred to it bythe Manager on behalf of the Funds. The IRC is responsible for overseeing the Manager’s decisions in situationswhere the Manager is faced with any present or perceived conflicts of interest, all in accordance with NI 81-107.

The IRC may also approve certain mergers between the Funds and other funds, and any change of the auditor ofthe Funds. Subject to any corporate and securities law requirements, no securityholder approval will be obtainedin such circumstances, but you will be sent a written notice at least 60 days before the effective date of any suchtransaction or change of auditor. In certain circumstances, securityholder approval may be required to approvecertain mergers.

The IRC currently has five members, each of whom is independent of the Manager.

The IRC prepares and files a report to the securityholders each fiscal year that describes the IRC and its activitiesfor securityholders as well as contains a complete list of the standing instructions. These standing instructionsenable the Manager to act in a particular conflict of interest matter on a continuing basis provided the Managercomplies with its policies and procedures established to address that conflict of interest matter and reportsperiodically to the IRC on the matter. This report to the securityholders is available on the Manager’s website atwww.scotiafunds.com or, at no cost, by contacting the Manager at [email protected].

Additional information about the IRC, including the names of its members, is available in the annual informationform.

Funds that invest in underlying funds that are managed by us or our associates or affiliates will not vote any of the securities ofthose underlying funds. However, we may arrange for you to vote your share of those securities.

The Funds have received an exemption from the securities regulatory authorities allowing them to purchase equity securitiesof a Canadian reporting issuer during the period of distribution of the securities and for the 60-day period following the periodof distribution (the ‘‘Prohibition Period’’) pursuant to a private placement notwithstanding that an affiliate or associate of theManager, such as Scotia Capital Inc., acts as an underwriter or agent in the offering of equity securities. Any such purchasemust be consistent with the investment objectives of the particular Fund. Further, the IRC of the Funds must approve theinvestment in accordance with the approval requirements of NI 81-107 and such purchase can only be carried out if it is incompliance with certain other conditions.

The Funds have received an exemption from the securities regulatory authorities to permit the Funds, to invest in equitysecurities of an issuer that is not a reporting issuer in Canada during the Prohibition Period, whether pursuant to a privateplacement of the issuer in Canada or in the United States or a prospectus offering of the issuer in the United States ofsecurities of the same class, even if an affiliate of the Manager acts as underwriter in the private placement or prospectusoffering, provided the issuer is at the time a registrant in the United States, the IRC approves of the investment and thepurchase is carried out in compliance with certain other conditions.

In addition to the above exemptive relief, the Funds may from time to time be granted exemptions from NI 81-102 to permitthem to invest during the Prohibition Period in securities of an issuer, in which an affiliate or associate of the Manager, such asScotia Capital Inc., acts as an underwriter or agent in the issuer’s distribution of securities of the same class, where the Fundsare not able to do so in accordance with NI 81-107 or the exemptive relief described above.

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Purchases, switches and redemptionsSeries A and Series T shares of the ScotiaFunds are no-load. Fund. We may allocate expenses to a particular CorporateThat means you do not pay a sales commission when you buy, Fund when it is reasonable to do so. Securities which tradeswitch or sell these shares through us or our affiliates. on a public stock exchange are usually valued at theirSelling your shares is also known as redeeming. closing price on that exchange. However, if the price is not a

true reflection of the value of the security, we will useanother method to determine its value. This method is calledHow to place ordersfair value pricing and it will be used when a security’s value

You can open an account and buy, switch or sell the Funds, is affected by events which occur after the closing of thesubject to any specific rules your dealer may have: market where the security is principally traded. Fair value• by calling or visiting any Scotiabank branch pricing may also be used in other circumstances.

• by calling or visiting an office of ScotiaMcLeod or by All of the Funds are valued in Canadian dollars.visiting online (and/or by calling) Scotia iTRADE or

• through Scotia OnLine at www.scotiabank.com once you About the series of shareshave signed up for this service. You may not redeem

The Funds offered under this simplified prospectus are avail-ScotiaFunds through Scotia OnLine – redemptions mustable in Series A shares and Series T shares only. The seriesbe placed through a Scotiabank branch, either in person,have different fees and are intended for different investors:by email, by fax, or by telephone.• Series A shares are available to all investors.

You can also open an account and place orders through other• Series T shares are intended for investors seeking stableregistered brokers or dealers. They may charge you a sales

monthly distributions. A portion of distributions forcommission or other fee. Brokers and dealers must sendSeries T shares is expected to consist of return oforders to us on the same day that they receive completedcapital but may also include ordinary dividends. Anyorders from investors.capital gains dividends will be included within 60 days

All transactions are based on the price of a Fund’s shares – following year end.or its net asset value per share (‘‘NAVPS’’). All orders areprocessed using the next NAVPS calculated after the Fund How to buy the Fundsreceives the order.

Scotia Conservative Government Bond Capital Yield Class,Scotia INNOVA Income Portfolio Class and Scotia FixedHow we calculate net asset value per shareIncome Blend Class are closed to new purchases and to

We usually calculate the NAVPS of each series of each Fund switches of securities from other funds into these Funds. Thefollowing the close of trading on the Toronto Stock Exchange closure does not affect your ability to switch from these(the ‘‘TSX’’) on each day that the TSX is open for trading Funds to other funds. We may choose to re-open these Funds(a ‘‘Valuation Date’’). In unusual circumstances, we may to new purchases in the future.suspend the calculation of the NAVPS, subject to any neces-sary regulatory approval. Minimum investments

The NAVPS of each series of a Fund is calculated by dividing The minimum amounts for the initial and each subsequent(i) the current market value of the proportionate share of investment in Series A and Series T shares of the Scotiathe assets allocated to the series, less the liabilities of the INNOVA Portfolios is $50,000 and $50, respectively, inseries and the proportionate share of the common expenses Series A and Series T shares of the Scotia Partners Portfoliosallocated to the series by (ii) the total number of outstand- is $10,000 and $25, respectively and in Series A and Series Ting shares in that series at such time. Common expenses of shares of Scotia Global Dividend Class, Scotia Canadianthe Corporation are shared by all Corporate Funds and are Dividend Class, Scotia Conservative Government Bond Capi-allocated based on the relative net asset values of each tal Yield Class, Scotia Fixed Income Blend Class, ScotiaCorporate Fund and the allocation to a particular Corporate Canadian Equity Blend Class, Scotia U.S. Equity Blend ClassFund is then treated as a common expense of the Corporate and Scotia International Equity Blend Class is $1,000 andFund to be shared amongst the series of that Corporate $25, respectively. If you buy, sell or switch shares through

55

non-affiliated brokers or dealers you may be subject to How to switch Fundshigher minimum initial or additional investment amounts.

You can switch from one ScotiaFund to another ScotiaFund,We can redeem your shares after giving 10 days’ written as long as you are eligible to hold the particular series of thenotice to you if the value of your investment in any shares of ScotiaFund into which you switch. A switch involves movinga Fund drops below the minimum initial investment. We may money from the Fund to another ScotiaFund. Generally, achange the minimum amounts for initial and subsequent switch may be an order to sell and buy or to convert yourinvestments in shares of a Fund at any time, from time to securities. We describe these kinds of switches below. Whentime, and on a case by case basis, subject to applicable we receive your order, we will sell or convert your securitiessecurities laws. from the Fund and use the proceeds to buy the second

ScotiaFund. The steps for buying and selling a ScotiaFundalso apply to switches. A Fund may also charge you a shortMore about buyingterm or frequent trading fee if you switch your securities

• Purchase orders received by the Manager by the close of within 31 days of buying them, or if you have made multipletrading of the Toronto Stock Exchange, generally 4:00 p.m. switches within ten calendar days of purchase. See Short(Toronto time), on a Valuation Date will be effective on term trading for details.that day. Orders received after that time will be effectiveon the next Valuation Date.

Switching between corporate funds and series of acorporate fund• We can reject all or part of your order within one business

day of the Fund receiving it. If we reject your order, weWhen you switch shares between Corporate Funds or

will immediately return any money received, withoutbetween series within a Corporate Fund, it is treated as a

interest.conversion. You can convert shares of a Corporate Fund into

• We may reject your order if you have made several shares of another Corporate Fund as long as you are eligiblepurchases and sales of a Fund within a short period of to hold series of the other Corporate Fund. You can converttime, usually 31 days. See Short term trading for details. shares of a series to shares of another series within the same

Corporate Fund as long as you are eligible to holder the• You have to pay for your shares when you buy them. If weother series of the Corporate Fund. When you convert sharesdo not receive payment for your purchase within threebetween Corporate Funds or series, the value of your invest-business days after the purchase price is determined, wement will not change (except for any fees you pay towill sell your shares on the next business day. Subject toconvert), but the number of shares you hold will change.the implementation of changes to the timeframe for theThis is because each series of each Corporate Fund has asettlement of securities in Canada, effective September 5,different share price. A switch from a series of shares of one2017, payment for shares must be received within twoCorporate Funds for the same or a different series of sharesbusiness days after the purchase price is determined. Ifof a different Corporate Fund within the Corporation willthe proceeds from the sale are more than the cost ofgenerally be considered a disposition for tax purposes andbuying the shares, the Fund will keep the difference. Ifaccordingly, you will realize a capital gain or capital loss. Athe proceeds are less than the cost of buying the shares,switch between series of shares of the same Corporate Fundwe must pay the shortfall. We may collect the shortfall andwill generally not be considered a disposition for tax pur-any related costs from the dealer or broker who placed theposes and accordingly, you will not realize a capital gain ororder, or from you, if you placed the order directly with us.capital loss provided that the two series of shares deriveIf you used a dealer or broker to place the order then yourtheir value in the same proportion from the same property ordealer or broker may make provision in its arrangementsgroup of properties.with you that it will be entitled to reimbursement from

you of the shortfall together with any additional costs andexpenses suffered by it in connection with a failed settle- Switching between corporate funds and trust funds

ment of a purchase of shares of a Fund caused by you.Switching between a Corporate Fund and a Trust Fund is

• Your broker, dealer or we will send you a confirmation of considered a disposition for tax purposes. If you hold youryour purchase once your order is processed. If you buy securities in a non-registered account, you may realize ashares through pre-authorized contributions, you will capital gain or loss on the disposition. Capital gainsreceive a confirmation only for the initial investment and are taxable.when you change the amount of your regular investment.

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More about switching • Sell orders placed for a corporation, trust, partnership,agent, fiduciary, surviving joint owner or estate must be

• The rules for buying and selling shares also apply toaccompanied by the required documents with proof of

switches.signing authority. The sell order will be effective only

• You can switch between Funds valued in the same when the Manager, on behalf of the Fund, receives allcurrency. required documents, properly completed.

• Your broker, dealer or we will send you a confirmation • If you hold your shares in a non-registered account, youonce your order is processed. will experience a taxable disposition which for most

securityholders is expected to result in a capital gainHow to sell your shares or loss.

• Your broker, dealer or we will send you a confirmationIn general, your instructions to sell must be in writing, andonce your order is processed. If you sell shares throughyour bank, broker or dealer must guarantee your signature.the automatic withdrawal plan, you will receive a confir-We may also require other proof of signing authority.mation only for the first withdrawal.

We will send your payment to your broker or dealer withinthree business days of receiving your properly completed Suspending your right to buy, switch and sell sharesorder. Subject to the implementation of changes to the

Securities regulations allow us to temporarily suspend yourtimeframe for the settlement of securities in Canada, effec-right to sell your Fund shares and postpone payment of yourtive September 5, 2017, we will send your payment to yoursale proceeds:broker or dealer within two business days of receiving your

properly completed order. If you sell shares of a Fund, within • during any period when normal trading is suspended on31 days of buying them, you may have to pay a short term any exchange on which securities or derivatives that maketrading fee. See Short term trading for details. up more than 50% by value or underlying market exposure

of the total assets of the Fund without allowance forYou can also sell shares on a regular basis by setting up an

liabilities are traded and there is no other exchange whereautomatic withdrawal plan. See Optional services for details.

these securities or derivatives are traded that represents aWe may redeem your shares under certain circumstances. reasonably practical alternative for the Fund; orSee U.S. withholding tax risk in this simplified prospectus • with the approval of securities regulators.and Shares of the Funds – Redemption in the annual infor-

We may also suspend your right to sell your shares andmation form of the Funds for further details.postpone payment of your sale proceeds if the Fund in whichyou are invested is invested in an underlying fund and suchMore about sellingunderlying fund suspends the Fund’s right to redeem

• You must provide all required documents within 10 busi- its investment.ness days of the day the redemption price is determined.

We will not accept orders to buy shares of a Fund during anyIf you do not, we will buy back the shares as of the close ofperiod when we have suspended investors’ rights to sellbusiness on the 10th business day. If the cost of buying thetheir shares.shares is less than the sale proceeds, the Fund will keep

the difference. If the cost of buying the shares is more You may withdraw your sell order before the end of thethan the sale proceeds, we must pay the shortfall. We can suspension period. Otherwise, we will sell your shares at thecollect the shortfall and any related costs from the broker NAVPS next calculated when the suspension period ends.or dealer who placed the order, or from you, if you placedthe order directly with us. If you used a dealer or broker

Short term tradingto place the order then your dealer or broker may makeprovision in its arrangements with you that it will be Short term trading by investors can increase a Fund’sentitled to reimbursement from you of the shortfall expenses, which affects all investors in the Fund, and cantogether with any additional costs and expenses suffered affect the economic interest of long-term investors. Shortby it in connection with a failed redemption of shares of a term trading can affect a Fund’s performance by forcing theFund caused by you. portfolio advisor to keep more cash in the Fund than would

otherwise be required. To discourage short term trading, a

57

Fund may charge a fee of 2% of the amount you sell orswitch, if you sell or switch your shares within 31 days ofbuying them. The short term trading fee does not apply to:

• automatic rebalancing that is part of the service offered bythe Manager;

• transactions not exceeding a certain minimum dollaramount, as determined by the Manager from time to time;

• trade corrections or any other action initiated by theManager or the applicable portfolio advisor;

• transfers of securities of one Fund between two accountsbelonging to the same securityholder;

• regularly scheduled RRIF or LIF (defined below) pay-ments; and

• regularly scheduled automatic withdrawal plan payments.

Any formal or informal arrangements to permit short termtrading are described in the Fund’s annual information form.If securities regulations mandate the adoption of specifiedpolicies relating to short term trading, the Funds will adoptsuch policies if and when implemented by the securitiesregulators. If required, these policies will be adopted withoutamendment to this simplified prospectus or the Funds’annual information form and without notice to you, unlessotherwise required by such regulations.

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Optional servicesThis section tells you about the accounts, plans and services Automatic withdrawal planthat are available to investors in the ScotiaFunds. Call us at

Automatic withdrawal plans let you receive regular cash1-800-268-9269 (416-750-3863 in Toronto) for English, orpayments from your Funds. The minimum balance needed to1-800-387-5004 for French, or contact your Scotiabankstart the plan is $50,000 for the Scotia INNOVA Portfoliobranch for full details and application forms.Classes and $10,000 for all other Funds and the minimum foreach withdrawal is $50.

Pre-authorized contributions

Following your initial investment, you can make regular More about the automatic withdrawal planpre-authorized contributions (‘‘PAC’’) for Series A and

• The automatic withdrawal plan is only available forSeries T shares of the Funds using automatic transfers fromnon-registered accounts and for Series A and Series T.your bank account at any Canadian financial institution.

• You can choose to receive payments monthly, quarterly,More about pre-authorized contributions semi-annually or annually.

• We will automatically sell the necessary number of shares• Pre-Authorized contributions are available forto make payments to your bank account at any Canadiannon-registered accounts, RRSPs, RESPs, RDSPs andfinancial institution or by cheque.TFSAs. See Minimum investments for more details.

• If you hold your shares in a non-registered account, you• You can choose to invest weekly, bi-weekly, semi-monthly,may realize a capital gain or loss. Capital gainsmonthly, bi-monthly, quarterly, semi-annually or annually.are taxable.• We will automatically transfer the money from your bank

• You can change the Funds and the amount or frequency ofaccount to the Funds you choose.your payments, or cancel the plan by contacting your• You can change how much you invest and how often youregistered investment professional.invest, or cancel the plan at any time by contacting your

• Automatic withdrawal plans which were established priorregistered investment professional.to any Fund merger will be re-established in comparable• We can change or cancel the plan at any time.plans with respect to the applicable continuing Funds

• If you make purchases using pre-authorized contributionsunless you advise otherwise.

and are not a resident of Quebec, you will receive Fund• We can change or cancel the plan, or waive the minimumFacts for the Fund you have invested in only after your

amounts at any time.initial purchase unless you request that Fund Facts alsobe provided to you after each subsequent purchase. If you If you withdraw more money than your Fund shares arewould like to receive Fund Facts for subsequent earning, you will eventually use up your investment.purchases, please contact your broker or dealer. The cur-rent Fund Facts may be found at www.sedar.com or at

Registered planswww.scotiafunds.com. Quebec residents will receive FundFacts after each subsequent purchase using a Scotia registered plans, including RRSPs, RRIFs, RDSPs,pre-authorized contribution plan. Although you do not locked-in retirement accounts, locked-in retirement savingshave a statutory right to withdraw from a subsequent plans, life income funds, locked-in retirement income funds,purchase of shares made under a pre-authorized contribu- prescribed retirement income fund, RESPs and TFSAs aretion (as that right only exists with respect to initial available from your dealer or advisor at a Scotiabank branch.purchases under a PAC), you will continue to have a right You can make lump-sum investments, or if you prefer, youof action for damages or rescission in the event the Fund can set up a regular investment plan using Pre-AuthorizedFacts (or the documents incorporated by reference into Contributions. See Minimum investments for the minimumthe simplified prospectus) contains a misrepresentation, investment amounts. You can also hold shares of the Fundswhether or not you request a Fund Facts for subsequent in self-directed registered plans with other financial institu-purchases. tions. You may be charged a fee for these plans.

• Pre-authorized contribution plans which were establishedprior to any Fund merger will be re-established in compa-rable plans with respect to the applicable continuing Fundunless you advise otherwise.

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Fees and expensesThis section describes the fees and expenses you may have to the residence of the Fund investors may affect the amount ofpay if you invest in the Funds. You may have to pay some of HST paid by the Funds each year.these fees and expenses directly. The Funds may have to pay

The Manager is not required to seek securityholder approvalsome of these fees and expenses, which may reduce thefor the introduction of, or a change in the basis of calculat-value of your investment. The Funds are required to paying, a fee or expense that is charged to a Fund or chargedgoods and services tax (‘‘GST’’) or harmonized sales taxdirectly to securityholders of the Fund in a way that could(‘‘HST’’) on management fees and operating expenses inresult in an increase in charges to securityholders providedrespect of each series of shares. GST is currently charged atany such introduction, or change, will only be made if noticea rate of 5% and HST is currently charged at a rate ofis sent to securityholders at least 60 days before the effectivebetween 13% and 15% depending on the province. Changes indate of the change.HST rates, the adoption of HST by additional provinces, the

repeal of HST by HST-participating provinces and changes in

Fees and expenses payable by the Funds

Management fees The management fees cover the costs of managing the Funds, arranging for investment analysis,recommendations and investment decision making for the Funds, arranging for distribution of the Funds,marketing and promotion of the Funds and providing or arranging for other services.

Each Fund pays us a management fee with respect to each series of shares. The fee is calculated andaccrued daily and paid monthly. The annual rates of the management fee, which are a percentage of the netasset values (‘‘NAV’’) for Series A and Series T shares of each Fund are as follows:

Annualmanagement fee

Fund Series A Series T

Scotia Conservative Government Bond Capital Yield Class 1.10% –Scotia Fixed Income Blend Class 1.10% –Scotia Canadian Dividend Class 1.50% –Scotia Canadian Equity Blend Class 1.75% –Scotia U.S. Equity Blend Class 1.75% –Scotia Global Dividend Class 1.50% –Scotia International Equity Blend Class 1.75% –Scotia INNOVA Income Portfolio Class 1.60% –Scotia INNOVA Balanced Income Portfolio Class 1.70% 1.70%Scotia INNOVA Balanced Growth Portfolio Class 1.80% 1.80%Scotia INNOVA Growth Portfolio Class 1.90% 1.90%Scotia INNOVA Maximum Growth Portfolio Class 2.00% 2.00%Scotia Partners Balanced Income Portfolio Class 1.85% 1.85%Scotia Partners Balanced Growth Portfolio Class 1.95% 1.95%Scotia Partners Growth Portfolio Class 2.05% 2.05%Scotia Partners Maximum Growth Portfolio Class 2.15% 2.15%

Management fee In order to encourage very large investments in a Fund and to achieve effective management fees that arerebates competitive for these large investments, the Manager may agree to waive a portion of the management fee

that it would otherwise be entitled to receive from a Fund or a shareholder with respect to a shareholder’sinvestment in the Fund. An amount equal to the amount so waived may be paid to such shareholder by theFund or the Manager, as applicable (a ‘‘Management Fee Rebate’’). In this way, the cost of Management FeeRebates are effectively borne by the Manager, not the Funds or the shareholder as the Funds or theshareholder, as applicable, are paying a discounted management fee. All Management Fee Rebates areautomatically reinvested in additional shares of the relevant series of a Fund. The payment of ManagementFee Rebates by the Fund or the Manager, as applicable, to a shareholder in respect of a large investment isfully negotiable between the Manager, as agent for the Fund, and the shareholder’s financial advisor and/ordealer, and is primarily based on the size of the investment in the Fund. The Manager will confirm in writingto the shareholder’s financial advisor and/or dealer the details of any Management Fee Rebate arrangement.

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Fees and expenses payable by the Funds (cont’d)

Administration fees and The Manager pays certain operating expenses of the Funds. These expenses include regulatory filing feesother operating and other day-to-day operating expenses including, but not limited to, recordkeeping, accounting and Fundexpenses valuation costs, custody fees, audit and legal fees, costs of preparing and distributing annual and

semi-annual reports, prospectuses, Fund Facts and statements and investor communications. In return,each Fund pays a fixed administration fee. The fee is calculated and accrued daily and paid monthly. Theadministration fee may vary by series of shares and by Fund. The annual rates of the administration fee,which are a percentage of the NAV for Series A and Series T shares of each Fund, are as follows:

Annualadministration fee

Fund Series A Series T

Scotia Conservative Government Bond Capital Yield Class 0.10% –Scotia Fixed Income Blend Class 0.10% –Scotia Canadian Dividend Class 0.10% –Scotia Canadian Equity Blend Class 0.15% –Scotia U.S. Equity Blend Class 0.20% –Scotia Global Dividend Class 0.30% –Scotia International Equity Blend Class 0.30% –Scotia INNOVA Income Portfolio Class 0.10% –Scotia INNOVA Balanced Income Portfolio Class 0.10% 0.10%Scotia INNOVA Balanced Growth Portfolio Class 0.10% 0.10%Scotia INNOVA Growth Portfolio Class 0.10% 0.10%Scotia INNOVA Maximum Growth Portfolio Class 0.10% 0.10%Scotia Partners Balanced Income Portfolio Class 0.10% 0.10%Scotia Partners Balanced Growth Portfolio Class 0.10% 0.10%Scotia Partners Growth Portfolio Class 0.10% 0.10%Scotia Partners Maximum Growth Portfolio Class 0.10% 0.10%

Each Fund also pays certain operating expenses directly, including the costs and expenses related to theboard of directors of the Corporation, the IRC of the Funds, the cost of any new government or regulatoryrequirements, including, without limitation, costs associated with complying with International FinancialReporting Standards, compliance with Canadian OTC Derivatives Trade Reporting Rules, compliance withthe ‘‘Volcker Rule’’ under the Dodd-Frank Wall Street Reform and Consumer Protection Act and otherapplicable U.S. regulations and any new fees introduced by a securities regulator or other governmentauthority that is based on the assets or other criteria of the Funds, any transaction costs, including all feesand costs related to derivatives, and any borrowing costs (collectively, other fund costs), and taxes(including, but not limited to, GST or HST, as applicable).

The purchase price of all securities and other property acquired by or on behalf of the Funds (including, butnot limited to, brokerage fees, commissions and service charges paid in connection with the purchase andsale of such securities and other property) are considered capital costs paid directly by the Funds andtherefore are not considered part of the operating expenses of the Funds paid by the Manager.

Other fund costs will be allocated among Funds and each series of a Fund is allocated its own expenses andits proportionate share of the Fund’s expenses that are common to all series. Currently, each member of theIRC is entitled to an annual retainer of $45,000 ($60,000 for the Chair), and a per meeting fee of $2,000.Each mutual fund managed by the Manager to which NI 81-107 applies pays a proportionate share of thetotal compensation paid to the IRC each year and reimburses members of the IRC for expenses incurred bythem in connection with their services as members of the IRC. Each Fund’s share of the IRC’s compensationwill be disclosed in the Funds’ financial statements. The Manager may, in some years and in certain cases,pay a portion of a series’ administration fee or other fund costs. The administration fee and other fund costsare included in the management expense ratio of a Fund.

Management expense Each Fund pays all of the expenses relating to its operation and the carrying on of its activities, including:ratio (a) management fees paid to the Manager for providing general management services; (b) the

administration fee paid to the Manager; and (c) other fund costs (and taxes). These expenses are expressedeach year by each Fund as its annual management expense ratio which are the total expenses including,where applicable, a proportionate share of underlying fund expenses indirectly borne by the fund, of eachseries of the Fund for the year expressed as a percentage of the series of the of the Fund for the yearexpressed as a percentage of the Fund’s average daily net asset value during the year, calculated inaccordance with applicable securities legislation.

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Fees and expenses payable by the Funds (cont’d)

Funds that invest in Fees and expenses are payable by the underlying funds in which a Fund may invest, in addition to the feesother funds and expenses payable by the Fund. An underlying Fund pays its own administration fees and other expenses,

which are in addition to the administration fees and other expenses payable by a Fund that invests in theunderlying fund. However, no management fees or incentive fees are payable by a Fund that, to a reasonableperson, would duplicate a fee payable by the underlying funds of that Fund for the same service. In addition,a Fund will not pay any sales fees or redemption fees upon a purchase or redemption of securities of anunderlying fund.

Fees and expenses payable directly by you

No sales or redemption fees are payable by a Fund when it buys or sells securities of an underlying fund thatis managed by us or one of our affiliates or associates if the payment of these fees could reasonably beperceived as a duplication of fees paid by an investor in the Fund.

Sales charges None

Redemption fee None

Switch fee None

Short term trading fee To discourage short term trading, a Fund may charge a fee of 2% of the amount you sell or switch, if you sellor switch your shares within 31 days of buying them. See Short term trading.

Registered Plan fees If you invest through a Registered Plan available from Scotia Securities Inc. a withdrawal or transfer fee ofup to $50 may apply. If you invest through a self-directed Registered Plan with another Scotiabank dealer oradvisor or with another financial institution then you may contact your broker or dealer to determine if theycharge any Registered Plan fees.

Other fees • Pre-authorized contributions: None• Automatic withdrawal plan: None

Impact of sales charges

Series A and Series T shares of the Funds are no-load. That Scotia iTRADE). You may pay a sales commission or othermeans you do not pay a sales commission when you buy, fee if you buy, switch or sell shares through other registeredswitch or sell shares of these series through Scotia Securi- brokers or dealers. See Dealer compensation below.ties Inc. or Scotia Capital Inc. (including ScotiaMcLeod and

62

Dealer compensationSales incentive programsThis section explains how we compensate brokers and deal-

ers when you invest in Series A and Series T shares ofMembers of Scotiabank may include sales of securities of the

the Funds.Funds in their general employee incentive programs. Theseprograms involve many different Scotiabank products. We

Trailing commissions may offer other incentive programs, as long as Canadiansecurities regulators approve them.We may pay Scotia Securities Inc., ScotiaMcLeod or Scotia

iTRADE employees or other registered brokers and dealers a The Funds or their securityholders pay no charges for incen-trailing commission on Series A and Series T shares of the tive programs.Funds. The fee is calculated daily and paid monthly and,subject to certain conditions, is based on the value of

Equity interestsSeries A and Series T shares investors are holding of eachFund sold by a broker or dealer at the following annual rates: The Bank of Nova Scotia owns, directly or indirectly, 100% of

Maximum annual trailing Scotia Securities Inc. and Scotia Capital Inc. (whichcommission rate

includes HollisWealth�, ScotiaMcLeod and Scotia iTRADE)Fund Series A Series T

and HollisWealth Advisory Services Inc. The above dealersScotia Conservative Government Bond Capital

may sell shares of the Funds.Yield ClassScotia Fixed Income Blend Class up to 0.50% –Scotia Canadian Dividend Class Dealer compensation from management feesScotia Global Dividend ClassScotia Canadian Equity Blend Class The cost of the sales and service commissions and salesScotia U.S. Equity Blend Class incentive programs was approximately 42.66% of the totalScotia International Equity Blend Class up to 1.00% – management fees we received from all of the ScotiaFundsScotia INNOVA Income Portfolio Class up to 0.75% –

during the financial year ended December 31, 2016.Scotia INNOVA Balanced Income PortfolioClassScotia INNOVA Balanced Growth PortfolioClassScotia INNOVA Growth Portfolio ClassScotia INNOVA Maximum Growth PortfolioClassScotia Partners Balanced Income PortfolioClassScotia Partners Balanced Growth PortfolioClassScotia Partners Growth Portfolio ClassScotia Partners Maximum Growth PortfolioClass up to 1.00% up to 1.00%

Income tax considerations for investorsThis section is a general summary of how Canadian federal situation may be different. You should consult a tax advisorincome taxes affect your investment in the Fund. It assumes about your own situation.that you:

Shares held in a registered plan• are an individual (other than a trust);

• are a Canadian resident; Provided the Corporation is a ‘‘mutual fund corporation’’ forpurposes of the Tax Act at all material times, shares of the• deal with the Fund at arm’s length; andCorporation will be ‘‘qualified investments’’ for Registered

• hold your shares as capital property.Plans. Provided that the holder or annuitant of a TFSA, RRSPor RRIF (i) deals at arm’s length with the Corporation andThis summary assumes that the Corporation will be a(ii) does not hold a ‘‘significant interest’’ (as defined in the‘‘mutual fund corporation’’ within the meaning of the Tax ActTax Act) in the Corporation, the shares of any series of theat all material times. This section is not exhaustive and your

63

Fund will not be a prohibited investment for a TFSA, RRSP The price of a share of a Fund may include income and/oror RRIF. Under proposals to amend the Tax Act contained in capital gains that the Fund has earned, but not yet realizedthe federal budget released on March 22, 2017, the prohib- and/or distributed. If you buy shares of a Fund before it paysited investment rules will also apply to a trust governed by a a dividend, the dividend you receive will be taxable to youRESP or RDSP, effective March 22, 2017. Investors should even though the Fund earned the amount before youconsult with their tax advisors regarding whether an invest- invested in the Fund. For example, the Fund may pay itsment in a Fund will be a prohibited investment for their only, or most significant, dividend in December. If youTFSA, RRSP, RRIF, RESP or RDSP. purchase shares late in the year, you will have to pay tax on

the dividend you receive, even though you were not investedIf you hold shares of a Fund in a Registered Plan, you pay no in the Fund during the whole year.tax on dividends from the Fund on those shares or on anycapital gains that your Registered Plan receives from selling In general, you must include any management fee rebatesor switching shares held inside the plan. Withdrawals from a you receive in your income. However, in some circumstances,Registered Plan (other than TFSA) will generally be subject you may instead elect to reduce the adjusted cost base ofto tax. your securities by the amount of the rebate.

We will issue you a tax slip that shows the taxable amount ofShares held in a non-registered account

your dividends and any federal dividend tax credit thatDividends from the Funds applies, as well as any capital gains dividends in respect of

the preceding tax year.The Corporation may pay ordinary dividends and/or capitalgains dividends. Dividends are taxable in the year you

Capital gains (or losses) you realizereceive them, whether you receive them in cash or havethem reinvested in additional shares. When you dispose of a share, including on a redemption or a

switch of shares of a particular series of a Fund for securitiesOrdinary dividends are eligible for the dividend gross-up andof another fund, you may realize a capital gain or capital loss.tax credit treatment that applies to taxable dividendsYour capital gain or capital loss will be equal to the differ-received from taxable Canadian corporations. An enhancedence between the proceeds of disposition (generally, thegross-up and dividend tax credit is available for certainvalue received on the disposition less any reasonable disposi-‘‘eligible dividends’’ from a corporation. The Corporation willtion costs) and your adjusted cost base of the share.designate taxable dividends as ‘‘eligible dividends’’ to the

extent permitted under the Tax Act. If you dispose of shares of a Fund and you, or your spouse oranother person affiliated with you (including a corporationCapital gains dividends are distributions of capital gainscontrolled by you) has acquired shares of the same Fundrealized by the Corporation and will generally be treated aswithin 30 days before or after you dispose of the shares (suchcapital gains realized by you. In general, you must includenewly acquired shares being considered ‘‘substituted prop-one-half of the amount of a capital gains dividend in yourerty’’), your capital loss may be deemed to be a ‘‘superficialincome for tax purposes. Capital gains dividends may be paidloss’’. If so, your loss will be deemed to be nil and the amountby the Corporation to shareholders of any particular Fund orof the loss will be added to the adjusted cost base of theFunds in order to obtain a refund of any capital gain taxesshares which are ‘‘substituted property’’.payable by the Corporation as a whole, whether or not such

taxes relate to the investment portfolio attributable to a A switch from a series of shares of one Corporate Fund forparticular Fund or Funds. the same or a different series of shares of a different

Corporate Fund within the Corporation will generally beDistributions on Series T shares will likely represent aconsidered a disposition for tax purposes and, accordingly,return of capital, but may also include ordinary dividendsyou will realize a capital gain or capital loss.and/or capital gains dividends. If the Corporation pays a

return of capital on a class or series of shares, such amountCalculating adjusted cost basewill generally not be taxable but will reduce the adjusted

cost base of your shares. If the reductions to the adjusted You must calculate your adjusted cost base for tax purposescost base of your shares would result in such adjusted cost in Canadian dollars and separately for each series of sharesbase becoming a negative amount, that amount will be of each Fund that you own.treated as a capital gain and the adjusted cost base of theshares will then be zero.

64

In general, the aggregate adjusted cost base of your shares of base of your shares. You may want to get advice from aa series of a Fund is: tax expert.

• the total amount paid for all your shares of that series ofPortfolio turnover ratethe Fund (including any sales charges paid);

• plus dividends and management fee rebates reinvested in Each Fund discloses its portfolio turnover rate in its manage-additional shares of that series of the Fund; ment report of fund performance. A Fund’s portfolio turnover

rate indicates how actively the Fund’s portfolio advisor man-• minus any return of capital in respect of shares of thatages its portfolio investments. A portfolio turnover rate ofseries of the Fund;100% is equivalent to the Fund buying and selling all of the

• minus the adjusted cost base of any shares of that seriessecurities in its portfolio one time in the course of a year.

you have previously redeemed or otherwise disposed of.The higher a Fund’s portfolio turnover rate in a year, thegreater the trading costs payable by the Fund in the year andThe adjusted cost base of each of your shares of a series of athe greater the likelihood that gains or losses will be realizedFund will generally be equal to the aggregate adjusted costby the Fund. There is not necessarily a relationship betweenbase of all shares of that series of the Fund held by you ata high turnover rate and the performance of a Fund.the time of the disposition divided by the total number of

shares of that series of the Fund held by you. You shouldkeep detailed records of the purchase cost of your shares anddividends you receive so you can calculate the adjusted cost

What are your legal rights?Securities legislation in some provinces and territories gives form, Fund Facts or financial statements misrepresent anyyou the right to withdraw from an agreement to buy mutual facts about the mutual fund. These rights must usually befunds within two business days of receiving the simplified exercised within certain time limits.prospectus or Fund Facts, or to cancel your purchase within

For more information, refer to the securities legislation of48 hours of receiving confirmation of your order.your province or territory or consult your lawyer.

Securities legislation in some provinces and territories alsoallows you to cancel an agreement to buy mutual fundsecurities and get your money back, or to make a claim fordamages, if the simplified prospectus, annual information

65

12DEC201417494427

Additional information about each Fund is available in its most recently filed annual information form, its most recentlyfiled Fund Facts, its most recently filed interim financial reports and annual financial statements and its most recentlyfiled annual and interim management reports of fund performance. These documents are incorporated by referenceinto this simplified prospectus. That means they legally form part of this simplified prospectus just as if they wereprinted in it.

You can get a copy of the these documents, at your request and at no charge, by calling 1-800-268-9269(416-750-3863 in Toronto) for English, or 1-800-387-5004 for French, or by asking 1832 Asset Management L.P.

You will also find these documents on our website at www.scotiafunds.com.

These documents and other information about the Funds, such as information circulars and material contracts, are alsoavailable at www.sedar.com.

Scotia Conservative Government Bond Capital Yield Class (Series A shares)

Scotia Fixed Income Blend Class (Series A shares)

Scotia Canadian Dividend Class (Series A shares)

Scotia Canadian Equity Blend Class (Series A shares)

Scotia U.S. Equity Blend Class (Series A shares)

Scotia Global Dividend Class (Series A shares)

Scotia International Equity Blend Class (Series A shares)

Scotia INNOVA Income Portfolio Class (Series A shares)

Scotia INNOVA Balanced Income Portfolio Class (Series A and Series T shares)

Scotia INNOVA Balanced Growth Portfolio Class (Series A and Series T shares)

Scotia INNOVA Growth Portfolio Class (Series A and Series T shares)

Scotia INNOVA Maximum Growth Portfolio Class (Series A and Series T shares)

Scotia Partners Balanced Income Portfolio Class (Series A and T shares)

Scotia Partners Balanced Growth Portfolio Class (Series A and T shares)

Scotia Partners Growth Portfolio Class (Series A and T shares)

Scotia Partners Maximum Growth Portfolio Class (Series A and T shares)

1832 Asset Management L.P.1 Adelaide Street East28th FloorToronto, OntarioM5C 2V9

�Registered trademarks of The Bank of Nova Scotia, used under licence.

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ScotiaFunds� Simplified Prospectus

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