S Split Corp.

The Net Asset Value “NAV” of the fund on March 28, 2024, was $13.24 compared to $12.28 per unit on December 29, 2023. The fund’s two share classes (tickers: SBN and SBN.PR.A) had closing prices on March 28, 2024, at $2.78 and $8.67 respectively which, when combined, represent a $1.79 discount to the actual net asset value.

A distribution of $0.13125 was paid to Preferred shareholders during the quarter and no distribution was paid to the Class A units per the terms of the Articles of Incorporation. The value of BNS shares on March 28, 2024, was $70.07 compared to $64.50 on December 29, 2023.

The Bank of Nova Scotia (“BNS”) reported adjusted earnings of $1.69 per share which beat the consensus estimate of $1.61 per share, its first earnings beat in four quarters. The bank posted a decent increase in revenues of almost 6% year over year, however, earnings per share declined over the same period indicating continued cost headwinds.

Total return for BNS shares this quarter was 10.5% which put its share performance near the top of the big-six bank pack. The dividend was maintained at $1.06 per share this quarter.

The fund did not have any option writing activity in this quarter.

The Net Asset Value “NAV” of the fund on December 29, 2023, was $12.28 compared to $11.89 per unit on September 29, 2023. The fund’s two share classes (tickers: SBN and SBN.PR.A) had closing-mid prices on September 29, 2023, at $2.61 and $8.30 respectively which, when combined, represent a $1.37 discount to the actual net asset value.

A distribution of $0.13125 was paid to Preferred shareholders during the quarter and no distribution was paid to the Class A units per the terms of the Articles of Incorporation. The value of BNS shares on December 29, 2023, was $64.50 compared to $60.88 on September 29, 2023.

The Bank of Nova Scotia (“BNS”) reported adjusted earnings of $1.26 per share which significantly missed the consensus estimate of $1.65 per share. The bank posted a small increase in revenues, however, earnings per share declined this period as a result of a large provision for credit losses.

Total return for BNS shares this quarter was 5.95% which put its share performance near the bottom of the big-six bank pack. The dividend was maintained at $1.06 per share this quarter.

The fund did not have any option writing activity in this quarter.

The Net Asset Value “NAV” of the fund on September 29, 2023, was $11.89 compared to $12.86 per unit on June 30, 2023. The fund’s two share classes (tickers: SBN and SBN.PR.A) had closing prices on September 29, 2023, at $2.50 and $8.10 respectively which, when combined, represent a $1.29 discount to the actual net asset value.

A distribution of $0.13125 was paid to Preferred shareholders during the quarter and no distribution was paid to the Class A units per the terms of the Articles of Incorporation. The value of BNS shares on September 29, 2023, was $60.88 compared to $66.27 on June 30, 2023.

The Bank of Nova Scotia (“BNS”) reported adjusted earnings of $1.73 per share which was generally in-line with the consensus estimate of $1.737 per share. Earnings per share improved this period after slumping for four consecutive quarters. The bank achieved a modest improvement in earnings on higher revenues despite an unexpected increase in loan losses.

Total return for BNS shares this quarter was negative 5.0% which put its share performance in the middle of the big-six bank pack. The dividend was increased to $1.06 per share this quarter.

The fund did not have any option writing activity in this quarter.

The Net Asset Value “NAV” of the fund on June 30, 2023, was $12.86 compared to $13.33 per unit on March 31, 2023. The fund’s two share classes (tickers: SBN and SBN.PR.A) had closing prices on June 30, 2023, at $2.43 and $9.25 respectively which, when combined, represent a $1.18 discount to the actual net asset value.

A distribution of $0.13125 was paid to Preferred shareholders during the quarter and no distribution was paid to the Class A units per the terms of the Articles of Incorporation. The value of BNS shares on June 30, 2023, was $66.28 compared to $68.07 on March 31, 2023.

The Bank of Nova Scotia (“BNS”) reported adjusted earnings of $1.70 per share which missed the consensus estimate of $1.76 per share. This is the second consecutive quarterly earnings miss and the fourth quarter over quarter reduction. Revenues were generally flat and expenses continue to rise in several areas of operation which has put pressure on earnings.

Total return for BNS shares this quarter was negative 1.14% which put its share performance at the bottom of the big-six bank pack. The dividend was maintained at $1.03 per share this quarter.

The fund did not have any option writing activity in this quarter.

The Net Asset Value “NAV” of the fund on March 31, 2023, was $13.3345 compared to $13.03 per unit on December 31, 2022. The fund’s two share classes (tickers: SBN and SBN.PR.A) had closing prices on March 31, 2023, at $2.95 and $8.80 respectively which, when combined, represent a $1.58 discount to the actual net asset value.

A distribution of $0.13125 was paid to Preferred shareholders during the quarter and no distribution was paid to the Class A units per the terms of the Articles of Incorporation. The value of BNS shares on March 31, 2023, was $68.07 compared to $66.34 on December 31, 2022.

The Bank of Nova Scotia (“BNS”) reported adjusted earnings of $1.85 per share which missed the consensus estimate of $2.02 per share. The significant miss in earnings is attributed to both a reduction in top-line revenues along with significant cost increases, specifically provision for credit losses which was higher by 1.8 times the Q1:22 level.

Total return for BNS shares this quarter was 2.61% which put its share performance in the middle of the big-six bank pack. The dividend was maintained at $1.03 per share this quarter.

The fund did not have any option writing activity in this quarter.

The Net Asset Value “NAV” of the fund on December 31, 2022, was $13.03 compared to $12.98 per unit on September 30, 2022. The fund’s two share classes (tickers: SBN and SBN.PR.A) had closing prices on December 30, 2022, at $3.03 and $8.02 respectively which, when combined, represent a $1.98 discount to the actual net asset value.

A distribution of $0.13125 was paid to Preferred shareholders during the quarter and no distribution was paid to the Class A units per the terms of the Articles of Incorporation. The value of BNS shares on December 30, 2022, was $66.34 compared to $65.73 on September 30, 2022.

The Bank of Nova Scotia (“BNS”) reported adjusted earnings of $2.06 per share which beat the consensus estimate of $2.00 per share. Their Business Banking division which includes commercial and small business, was a key driver of Canadian earnings this quarter.

Total return for BNS shares this quarter was 2.54% which put its share performance near the bottom of the big-six bank pack. The dividend was $1.03 per share this quarter which was same as the previous quarter.

Top line revenue was better in Q4 for BNS and the other big banks compared to the previous two quarters. The earnings picture is more mixed but also improving as the bank navigates post-pandemic conditions. The fund did not have any option writing activity in this quarter.

The Net Asset Value “NAV” of the fund on September 30, 2022, was $12.98 compared to $15.14 per unit on June 30, 2022. The fund’s two share classes (tickers: SBN and SBN.PR.A) last traded on September 30, 2022, at $2.55 and $10.10 respectively which, when combined, represent a $0.33 discount to the actual net asset value.

A distribution of $0.13125 was paid to Preferred shareholders during the quarter and no distribution was paid to the Class A units per the terms of the Articles of Incorporation. The value of BNS shares on September 30, 2022, was $65.73 compared to $76.18 on June 30, 2022.

The Bank of Nova Scotia (“BNS”) reported adjusted earnings of $2.10 per share which was in-line with the consensus estimate of $2.104 per share. This is the first time in more than two years the BNS had a reduction in its quarter over quarter earnings. Top line revenues were slightly weaker and loss provisions and expenses were higher which lead to the decline in earnings.

Total return for BNS shares this quarter was negative 12.57% which put its share performance in the bottom of the big-six bank pack. The dividend was $1.03 per share this quarter which was up three cents from the previous quarter.

It was another difficult quarter for most banks in Canada with prices moving lower for four of the big six banks. After a relatively quiet summer, volatility began to inch higher in September. The fund did not have any option writing activity in this quarter.

The Net Asset Value “NAV” of the fund on June 30, 2022, was $15.14 compared to $18.04 per unit on March 31, 2022. The fund’s two share classes (tickers: SBN and SBN.PR.A) last traded on June 30, 2022, at $4.16 and $10.49 respectively which, when combined, represent a $0.49 discount to the actual net asset value.

A distribution of $0.13125 was paid to Preferred shareholders during the quarter and a distribution of $0.07625 was paid to the Class A units. The value of BNS shares on June 30, 2022, was $76.18 compared to $89.60 on March 31, 2021.

The Bank of Nova Scotia (“BNS”) reported adjusted earnings of $2.18 per share which beat the consensus estimate of $1.98 per share. BNS has been improving its quarterly earnings for two years and it’s up 15% on a year over year basis. Top line continues to increase driven by decent loan growth. Some weakness in non-interest income from trading and advisory divisions was more than offset by gains in the wealth management division.

Total return for BNS shares this quarter was negative 14.01% which put its share performance in the middle of the big-six bank pack. The dividend was $1.00 per share this quarter which was held at this level from the previous quarter.

It was a difficult quarter for most bank shares and BNS was no exception. Volatility increased a little to the high teens during the quarter as prices trended lower. The fund did not have any option writing activity in this quarter.

The Net Asset Value “NAV” of the fund on March 31, 2022 was $18.04 compared to $18.53 per unit on December 31, 2021. The fund’s two share classes (tickers: SBN and SBN.PR.A) last traded on March 31, 2022 at $6.80 and $10.31 respectively which, when combined, represent a $0.93 discount to the actual net asset value.

A distribution of $0.13125 was paid to Preferred shareholders during the quarter and a distribution of $0.12885 was paid to the Class A units. The value of BNS shares on March 31, 2022 was $89.60 compared to $89.55 on December 31, 2021.

The Bank of Nova Scotia (“BNS”) reported adjusted earnings of $2.15 per share which beat the consensus estimate of $2.05 per share. This is the eight consecutive quarter of improving earnings for the bank. Top line revenue was up in the Canadian Banking division on loan growth and other generally favourable conditions, however, earnings were slightly weaker quarter over quarter. This was due, in part to increased loan loss provisions contrary to what had been expected for this period. Profits continued to rise in the International Banks and Global Wealth Management divisions.

Total return for BNS shares this quarter was up 0.56% which put Scotiabank shares ranking second from the bottom of the big six banks which all delivered low single-digit returns. The dividend was $1.00 per share this quarter which represents the first increase in eight quarters.

The price trend is still positive for BNS in this quarter but may be pausing as the quarter draws to a close. Volatility remains in the mid-teens for the shares and implied volatility on the options. The fund remained unwritten with call options in order to fully participate in the price appreciation.

The Net Asset Value “NAV” of the fund on December 31, 2021 was $18.53 compared to $16.24 per unit on September 30, 2021. The fund’s two share classes (tickers: SBN and SBN.PR.A) last traded on December 31, 2021 at $6.98 and $10.30 respectively which, when combined, represent a $1.25 discount to the actual net asset value.

A distribution of $0.13125 was paid to Preferred shareholders during the quarter and a distribution of $0.0674 was paid to the Class A units. The value of BNS shares on December 31, 2021 was $89.55 compared to $77.96 on September 30, 2021.

The Bank of Nova Scotia (“BNS”) reported adjusted earnings of $2.10 per share which beat the consensus estimate of $1.907 per share. This is the seventh consecutive quarter of improving earnings for the bank. BNS managed to beat its stated earnings target for International operations, and Domestic division earnings were on track.

The bank sees an improving environment in the coming year which may include the ability to reduce loan-loss provisions and better interest margins if rates tick a little higher as expected.

Total return for BNS shares this quarter was up 17.5% this period which put Scotiabank shares ranking second from the top of the big six banks. The dividend was $0.90 per share this quarter unchanged from the previous quarter.

After several months of sideways price action, the fourth quarter saw a steady uptrend into the year-end as reflected in the total return previously stated. Implied volatility traded in the low-mid teens which has been typical for BNS over the past year. The fund remained unwritten with call options in order to fully participate in the price appreciation.

The Net Asset Value “NAV” of the fund on September 30, 2021 was $16.24 compared to $16.94 per unit on June 30, 2021. The fund’s two share classes (tickers: SBN and SBN.PR.A) last traded on September 30, 2021 at $5.75 and $10.20 respectively which, when combined, represent a $0.29 discount to the actual net asset value.

A distribution of $0.13125 was paid to Preferred shareholders during the quarter and a distribution of $0.035 was paid to the Class A units. The value of BNS shares on September 30, 2021 was $77.96 compared to $80.62 on June 30, 2021.

The Bank of Nova Scotia (“BNS”) reported adjusted earnings of $2.00 per share which beat the consensus estimate of $1.90 per share. This is the sixth consecutive quarter of improving earnings for the bank. Both the domestic and international operations contributed to this growth.

From a valuation perspective, BNS is still lagging its peers on both a Price-to-Earnings and Price-to-Book basis.

Total return for BNS shares this quarter was negative 2.2% this period which put Scotiabank shares ranking second from bottom of the big six banks. The dividend was $0.90 per share this quarter unchanged from the previous quarter.

The price trend was fairly flat for BNS this quarter in a narrow range and ended slightly weaker than the previous quarter. Implied volatility remained in the low teens. With valuations below its peer group and implied volatility remaining low, the risk appeared to be to the upside in the stock, so the fund remained unwritten with call options.

The Net Asset Value “NAV” of the fund at June 30, 2021 was $16.94 compared to $16.76 per unit on March 31, 2021. The fund’s two share classes (tickers: SBN and SBN.PR.A) were mid-priced on June 30, 2021 at $5.75 and $10.305 respectively which, when combined, represent a $0.885 discount to the actual net asset value.


A distribution of $0.13125 was paid to Preferred unitholders during the quarter and a distribution of $0.10 was paid to the Class A units. The value of BNS shares at June 30, 2021 was $80.62 compared to $78.62 on March 31, 2021.


The Bank of Nova Scotia (“BNS”) reported adjusted earnings of $1.90 per share which beat the consensus estimate of $1.75 per share. This was a significant improvement in earnings on a year over year basis and the third consecutive quarterly beat versus consensus.


Total return for BNS shares this quarter was 3.7% this period which put Scotiabank shares ranking in the bottom of the big six banks. The dividend was $0.90 per share this quarter unchanged from the previous quarter.


With the BNS share price trending higher for most of the quarter and volatility remaining stubbornly low, the fund chose to not write any options in this quarter in order to fully participate in the price move.

The Net Asset Value “NAV” of the fund at March 31, 2021 was $16.75 compared to $14.73 per unit on December 31, 2020. The fund’s two share classes (tickers: SBN and SBN.PR.A) were mid-priced on March 31, 2020 at $5.84 and $10.15 respectively which, when combined, represent a $0.76 discount (4.5%) to the actual net asset value.

The first quarter of 2021 was marked by continued strength in global equity markets which closed at or near all-time highs on expectations the rollout of vaccines around the world will lead to strong global GDP growth and corporate earnings in 2021. Central banks, in the meantime, remained committed to a policy of monetary easing in spite of stronger economic growth and inflation numbers, while governments continued to pass significant stimulus packages despite substantial deficits.

A distribution of $0.13125 was paid to Preferred unitholders during the quarter. There was no distribution to the Class A units per NAV threshold limits set out in the prospectus. The value of BNS shares at March 31, 2021 was $78.62 compared to $68.80 on December 31, 2020.

The Bank of Nova Scotia (“BNS”) reported adjusted earnings of $1.88 per share which beat the consensus estimate of $1.57 per share. This was not only an improvement over the previous quarter but also on a year over year basis. This surprise earnings beat takes BNS earnings to better than pre-pandemic levels.

Total return for BNS shares this quarter was 14.3% this period which put Scotiabank shares ranking in the middle of the big six banks which all delivered double-digit returns this quarter.

The dividend was $0.90 per share this quarter unchanged from the previous quarter.

With the BNS share price trending higher for most of the quarter and volatility relatively low, the fund chose to not write any options in this quarter in order to fully participate in the price move.

North American equity markets started off the fourth quarter with some trepidation as investors became increasingly concerned about the uncertainty of the U.S. election on November 3rd as well as the rise of new Covid-19 cases around the Globe. By early November, with the election results in and more importantly, promising vaccine news from two companies in dealing with the virus, markets rallied significantly and trended higher into the end of the year.

The Net Asset Value “NAV” of the fund at December 31, 2020 was $14.73 compared to $11.83 per unit on September 30, 2020. The fund’s two share classes (tickers: SBN and SBN.PR.A) were mid-priced on December 31, 2020 at $3.50 and $10.11 respectively which, when combined, represent a $1.12 discount (7.6%) to the actual net asset value.

A distribution of $0.13125 was paid to Preferred unitholders during the quarter. There was no distribution to the Class A units per NAV threshold limits set out in the prospectus. The value of BNS shares at December 31, 2020 was $68.80 compared to $55.32 on September 30, 2020.

The Bank of Nova Scotia (“BNS”) reported adjusted earnings of $1.45 per share which beat the consensus estimate of $1.22 per share. This was an improvement over the previous quarter but still not a return to pre-pandemic levels. Most metrics, including: earnings per share, net interest income, and return on equity, were weaker on a year over year basis.

The weakness resulting from high international exposure during COVID could prove to be an advantage for BNS when the world firmly emerges from the pandemic which is likely to begin later in 2021.

Total return for the bank shares this quarter was 26.0% this period which put Scotiabank shares ranking best in quarterly performance among the six big banks for the first time this year.

The dividend was $0.90 per share this quarter unchanged from the previous quarter.

Apart from a short-lived pullback in November, the price of BNS trended higher for most of the quarter and volatility trended lower. With the share price rising and volatility falling, the fund chose to not write any options in this quarter in order to fully participate in the price move.

The Net Asset Value “NAV” of the fund at September 30, 2020 was $11.83 compared to $12.02 per unit on June 30, 2020. The fund’s two share classes (tickers: SBN and SBN.PR.A) were mid-priced on September 30, 2020 at $1.80 and $10.075 respectively which, when combined, represent a $0.04 premium (0.38%) to the actual net asset value.

A distribution of $0.13125 was paid to Preferred unitholders during the quarter. There was no distribution to the Class A units per NAV threshold limits set out in the prospectus. The value of BNS shares at September 30, 2020 was $55.32 compared to $56.18 on June 30, 2020.

The Bank of Nova Scotia (“BNS”) reported adjusted earnings of $1.04 per share which missed the consensus estimate of $1.11 per share. Canadian banks in general are struggling to maintain Net Interest Income and other revenue streams during the pandemic. Even though Scotiabank has less total exposure to COVID related loans than other Canadian banks, its international exposure is at greater risk. BNS did increase its provisions for credit losses greater than was expected this quarter. However, payment deferrals offered to customers impacted by COVID are improving.

Total return for the bank shares this quarter was 0.05% this period which put Scotiabank shares ranking worst in quarterly performance among the six big banks for the second straight quarter.

The dividend was $0.90 per share this quarter unchanged from the previous quarter.

Volatility in the BNS share price and the volatility implied by options drifted sideways to lower for much of the third quarter. The fund closed the period with no open option positions. The overwritten level averaged 12.3% for the quarter.

The Net Asset Value “NAV” of the fund at June 30, 2020 was $12.02 compared to $12.65 per unit on March 31, 2020. The fund’s two share classes (tickers: SBN and SBN.PR.A) were priced on June 30, 2020 at mid $1.92 and last $9.50 respectively which, when combined, represent a $0.60 discount (5.0%) to the actual net asset value.

A distribution of $0.13125 was paid to Preferred unitholders during the quarter. There was no distribution to the Class A units per NAV threshold limits set out in the prospectus. The value of BNS shares at June 30, 2020 was $56.18 compared to $57.45 on March 31, 2020.

The Bank of Nova Scotia (“BNS”) reported adjusted earnings of $1.04 per share which beat the consensus estimate of $0.959 per share. The current quarterly reported earnings are down 39% year over year reflecting a challenging period for various reasons. The bank announced that it would exit the metals business which had dwindled away from being a core operation in recent years; and take a $0.17 charge to earnings in doing so. International operations were most adversely impacted this period, largely due to the COVID-19 pandemic. Given the relatively high international exposure for BNS compared to other Canadian banks, any negative impacts from the pandemic may persist at BNS longer than its competitors.

Total return for the bank shares this quarter was negative 0.65% this period which put Scotiabank shares ranking worst in quarterly performance among the six big banks and the only one with a negative total return.

The dividend was $0.90 per share this quarter unchanged from the previous quarter.

Like volatility for most equities, BNS volatility peaked in the first quarter with realized 30-day volatility surpassing 100% but began to drift back to normal levels for most of the current quarter.

The fund closed the period with 31.5% of the fund overwritten and averaged 15.3% overwritten for the quarter.

The Net Asset Value “NAV” of the fund at March 31, 2020 was $12.65 compared to $16.24 per unit on December 31, 2019. The fund’s two share classes (tickers: SBN and SBN.PR.A) were priced on March 31, 2020 at mid $2.18 and last $9.95 respectively which, when combined, represent a $0.52 discount (4.1%) to the actual net asset value.

A distribution of $0.13125 was paid to Preferred unitholders during the quarter. There was no distribution to the Class A units per NAV threshold limits set out in the prospectus. The value of BNS shares at March 31, 2019 was $57.47 compared to $73.35 on December 31, 2019.

The volatility experienced in the first quarter of 2020 has been truly historic across all asset classes as global markets and economies have been gripped by the pandemic COVID-19 (Coronavirus) which has infected over 2 million individuals to date while causing over 129,000 fatalities so far. After reaching all-time highs in the third week of February 2020, North American equity markets declined in the mid-30% range to the low reached on March 23rd, before rallying 15%-20% to end the quarter. Central banks and governments around the globe have responded with unprecedented monetary and fiscal policies to prop up economies and keep funding markets open.

Scotiabank had a good quarter as far as fundamentals are concerned. Canadian Banking, International Banking, and Global Wealth Management all contributed positively in the period. Total revenue was up over 7% and net profits were up 3.5%. Like all the banks, prices were quite weak due to the over COVID related slump.

Total return for the bank shares this quarter was negative 20.7% this period which put Scotiabank shares ranking third in quarterly performance among the six big banks.

The dividend was $0.90 per share this quarter unchanged from the previous quarter.

Volatility was unprecedented for several days in March with realized 30-day volatility surpassing 100% by quarter end. Implied volatility spiked briefly to near those levels before returning to elevated but more reasonable levels in the 40% range.

The fund did not have any overwriting activity this quarter.

The Net Asset Value “NAV” of the fund at December 31, 2019 was $16.24 compared to $17.07 per unit on September 30, 2019. The fund’s two share classes (tickers: SBN and SBN.PR.A) were mid-priced on December 31, 2019 at $5.44 and $10.55 respectively which, when combined, represent a $0.25 discount (1.5%) to the actual net asset value.

A distribution of $0.13125 was paid to Preferred unitholders during the quarter. The Class A distribution was $0.10395 per unit.. The value of BNS shares at December 31, 2019 was $73.35 compared to $75.25 on September 30, 2019.

Bank performance was mixed in this quarter and Scotiabank was in the middle of the pack. Earnings were generally in line with consensus estimates, however, investors are still taking a wait and see approach to the stock given some of the uncertainly in the International operations. Contributions from wealth management were positive as expected.

Total return for the bank shares this quarter was negative 2.5% this period which put Scotiabank shares ranking fourth in quarterly performance among the six big banks.

The dividend was $0.90 per share this quarter, up $0.03 from Q3 as previously announced.

Volatility was relatively stable this quarter in the 10% to 12% range but dipped as low as 8% in December.

The average overwritten level for the quarter was 15.7%, up from 3.3% last quarter.

The Net Asset Value “NAV” of the fund at September 30, 2019 was $17.07 compared to $16.10 per unit on June 28, 2019. The fund’s two share classes (tickers: SBN and SBN.PR.A) were priced on September 30, 2019 last at $6.25 and mid at $10.455 respectively which, when combined, represent a $0.37 discount (2.1%) to the actual net asset value.

A distribution of $0.13125 was paid to Preferred unitholders during the quarter. The Class A distribution was omitted based on the NAV threshold as defined in the prospectus. The value of BNS shares at September 30, 2019 was $75.25 compared to $70.34 on June 28, 2019.

Scotiabank reported slightly better than expected earnings for Q3 2019 changing the trend from the previous two quarters. Income from both Canadian and International banking divisions improved quarter over quarter. And the wealth management division saw strong contributions from the MD Management and Jarislowsky Fraser acquisitions.

Total return for the bank shares this quarter was 8.26%. Investors responded favourably to the earnings surprise and generally good reported numbers which was reflected in the share price performance. BNS had the best performance of the big six banks this quarter.

The dividend was $0.87 per share this quarter, unchanged from Q2. However, a $0.03 increase was announced for the next quarter.

Volatility surged in August as recession fears permeated the markets but returned to normal levels by the end of the quarter.

The average overwritten level for the quarter was 3.3%, down from 6% last quarter.

The Net Asset Value “NAV” of the Fund at June 30, 2019 was $16.10 compared to $16.19 per unit on March 31, 2019. The Fund’s two share classes (tickers: SBN and SBN.PR.A) were bid on June 28, 2019 at $5.16 and $10.15 respectively which, when combined, represent a $0.79 discount (4.9%) to the actual NAV.

A distribution of $0.03415 was paid to Class A unitholders and $0.13125 was paid to Preferred unitholders during the quarter. The value of BNS shares at June 28, 2018 was $70.34 compared to $71.14 on March 29, 2019.

Scotiabank reported slightly weaker than expected earnings for Q2 2019 for the second consecutive quarter. Expenses were greater than expected with larger loan loss provisions, as well as, continued costs associated with acquisitions from last year. However, the CEO noted that two large retail acquisitions are already contributing positively to earnings.

The dividend was increased to $0.87 per share this quarter from $0.85 paid in the previous two quarters.

The BNS share price is still struggling compared to other big banks as investors continue to wait to see how the acquisitions get digested. Total return for the bank shares this quarter was 1.3% with the share price down just over 1%.

Volatility hit 2019 lows this quarter but rallied in May when the market sputtered.

It was a challenging environment for overwriting this quarter. The average overwritten level for the quarter was 6%, down from 20% last quarter.

The Net Asset Value “NAV” of the Fund at March 29, 2019 was $16.19 compared to $15.76 per unit on December 31, 2018. The fund’s two share classes (tickers: SBN and SBN.PR.A) were bid on March 29, 2019 at $5.40 and $10.18 respectively which, when combined, represent a $0.61 discount (3.8%) to the actual Net Asset Value.

A distribution of $0.0696 was paid to Class A unitholders and $0.13125 was paid to Preferred unitholders during the quarter. The value of BNS shares at March 29, 2018 was $71.14 compared to $68.05 on December 31, 2018.

Scotiabank reported weaker than expected earnings for Q1 2019 in a rare earnings miss for the bank. The weaker earnings were mostly due to short-term expenses that are lingering but needed to fully integrate recent acquisitions.

The dividend was held at $0.85 per share this quarter.

Share price performance was mixed for the banks during this calendar quarter. Scotia was the second worst of the big six with a total return of 4.54 percent.

Along with most bank stocks, volatility spiked in late December but reversed into the New Year and drifted lower throughout the quarter. Implied volatility dipped below 10 percent in late March 2019.

With lower implied volatility and rising prices, we decreased the level of overwriting this quarter to average 20.1 percent and end the quarter at 0 percent overwritten.

The Net Asset Value “NAV” of the Fund at December 31, 2018 was $15.76 compared to $17.54 per unit on September 28, 2018. The fund’s two share classes (tickers: SBN and SBN.PR.A) were bid on December 31, 2018 at $5.00 and $10.20 respectively which, when combined, represent a $0.56 discount (3.5%) to the actual net asset value.

A distribution of $0.0704 was paid to Class A unitholders and $0.13125 was paid to Preferred unitholders during the quarter. The value of BNS shares at December 31, 2018 was $68.05 compared to $76.99 on September 28, 2018.

Scotiabank reported earnings generally in line with estimates despite some complexities as a result of numerous acquisitions over the year. The dividend was increased to $0.85 per share this quarter.

It was a bad quarter for most stocks and the banks were no exception. All of the big six suffered close to double-digit negative returns this quarter. However, BNS was the second best in the group at negative 9.5% total return.

After a relatively quiet year from a volatility perspective, BNS volatility spiked in late December to over 24% this quarter when the price dropped to its lows for the year.

In the face of higher implied volatility, we increased the level of overwriting this quarter to average 17.8% and end the year at 31.8% overwritten.

The Net Asset Value “NAV” of the Fund at September 28, 2018 was $17.54 compared to $17.35 per unit on June 29, 2018. The fund’s two share classes (tickers: SBN and SBN.PR.A) were bid on September 28, 2018 at $7.22 and $10.60 respectively which, when combined, represent a $0.28 premium (1.6%) to the actual NAV.

A distribution of $0.117 was paid to Class A unitholders and $0.13125 was paid to Preferred unitholders during the quarter. The value of BNS shares at September 28, 2018 was $76.99 compared to $74.44 on June 29, 2018.

Scotiabank reported earnings in line with estimates this quarter and the dividend was held at $0.82 per share.

BNS has been a laggard in price performance compared to other big banks for the first half of 2018. For this quarter it was in the middle of pack delivering a total return of 3.6 percent.

The BNS implied volatility made its 2018 high in February but has been relatively quiet since. The 2018 low so far occurred in September going under 9 percent in keeping with realized volatility which has been mostly quiet as well this period.

The low volatility levels make overwriting more challenging. Our average overwritten level for this quarter was 5 percent.

The Net Asset Value (“NAV”) of the Fund at June 29, 2018 was $17.35 compared to $18.45 per unit on March 29, 2018. The fund’s two share classes (tickers: SBN and SBN.PR.A) were bid on June 29, 2018 at $6.70 and $10.54 respectively which, when combined, represent a $0.11 discount (0.63%) to the actual NAV.

A distribution of $0.1251 was paid to Class A unitholders and $0.13125 was paid to Preferred unitholders during the quarter. The value of BNS shares at June 29, 2018 was $74.44 compared to $79.36 on March 29, 2018.

Scotiabank reported earnings slightly above expectations this quarter as they have done for a few quarters. The dividend was raised from $0.79 to $0.82 per share as announced last quarter.

The banks performance was mixed this quarter, however, BNS fared the worst of the big six banks with a total return of negative 4.1 percent. Investors are mixed in their outlook following a rash of acquisitions and have ratcheted the share price down to mid-2017 levels.

The BNS implied volatility set the high and low for the year so far in Q1. This quarter has been somewhat quieter with levels trading between 10% and 15%, within the long-term ranges, albeit at the lower end.

Despite trending lower this quarter, the BNS share price endured broad swings while implied volatility remained stubbornly low. These combined price characteristics made the overwriting process especially difficult. Our average overwritten level for this quarter was 4 percent.

The Net Asset Value (“NAV”) of the Fund at March 29, 2018 was $18.45 compared to $19.35 per unit on December 29, 2017. The fund’s two share classes (tickers: SBN and SBN.PR.A) closed on March 29, 2018 at $7.69 and $10.32 respectively which, when combined, represent a $0.44 discount (-2.4%) to the actual NAV.

A distribution of $0.1374 was paid to Class A unitholders and $0.13125 was paid to Preferred unitholders during the quarter. The value of BNS shares at March 29, 2018 was $79.36 compared to $81.12 on December 30, 2017.

Scotiabank reported earnings slightly above expectations this quarter. The dividend held steady at $0.79 per share, however a $0.02 increase was announced for next quarter in what has become a semi-annual expectation.

The big five banks all had negative price performance this quarter, however, BNS fared second best with a total return of negative 2.2%.

Implied volatility in BNS briefly spiked in February to over 22%, its highest level in two years, when stocks sold off at that time. It has since softened dramatically reaching a low of under 9% which came close to testing the 2017 lows.

We held off overwriting early in the quarter as the stock had just put in new highs, however, established a position covering approximately 32% of the holding by the end of the quarter as the stock price began to weaken.

The Net Asset Value (“NAV”) of the Fund at December 29, 2017 was $19.35 compared to $19.14 per unit on September 29, 2017. The fund’s two share classes are listed on the Toronto Stock Exchange as SBN and SBN.PR.A. They closed on December 29, 2017 at $8.25 and $10.42 respectively which, when combined, represent a $0.68 discount (3.5 percent) to the actual NAV.

A distribution of $0.14295 was paid to Class A unitholders and $0.13125 was paid to Preferred unitholders during the quarter. The value of BNS shares at December 29, 2017 was $81.12 compared to $80.20 on June 30, 2017.

Scotiabank missed the consensus earnings estimate this quarter for the first time in many quarters but not meaningfully, and the numbers overall were still quite good. The Canadian Banking division reported a record $1.07 billion in revenue. Trading was the only weak spot this quarter. The dividend was increased 3.9% to $0.79 per share. From a share price perspective, BNS was the laggard this quarter with a total return of 3.1% but ended the year with returns in the middle of the big five banks.

Volatility has been stubbornly low across most equities for the past couple of years and BNS is no exception. Implied volatility for BNS made a multi-year low at just over 8% this quarter.

The Net Asset Value (NAV) of the Fund at September 30, 2017 was $19.14 compared to $18.97 per unit on June 30, 2017. The Fund’s two share classes are listed on the Toronto Stock Exchange as SBN and SBN.PR.A. They closed on September 29, 2017 at $7.72 and $10.61 respectively which, when combined, represent a discount of $0.81 (4.2 percent) to the actual NAV.

A distribution of $0.132 was paid to Class A unitholders and $0.13125 was paid to Preferred unitholders during the quarter. The value of BNS shares at September 30, 2017 was $80.20 compared to $78.01 on June 30, 2017.

Scotiabank reported earnings that were slightly better than expected again this quarter. A key driver was better than expected margins in the international segment which now accounts for 40 percent of total revenues. The dividend remained at $0.76 per share. The share price performance was in the middle of the big five banks this quarter. The total return for BNS this quarter was 2.8 percent.

After peaking in May last quarter, BNS implied volatility began to soften somewhat but firmed when the share price weakened over the summer months. It hit a low for the year in mid-September when the stock began to rally again.

The Net Asset Value (NAV) of the Fund at June 30, 2017 was $18.97 compared to $19.17 per unit on March 31, 2017. The fund’s two share classes are listed on the Toronto Stock Exchange as SBN and SBN.PR.A. They closed on June 30, 2017 at $7.62 and $10.59 respectively which, when combined, represent a $0.69 discount (3.6 percent) to the actual NAV.

A distribution of $0.13075 was paid to Class A unitholders and $0.13125 was paid to Preferred unitholders during the quarter. The value of BNS shares at June 30, 2017 was $78.01 compared to $77.80 on March 31, 2017.

Scotiabank reported earnings that were slightly better than expected this quarter lead by positive developments in its International operations. The dividend was increased to $0.76 per share as announced in the previous quarter. The share price managed to top the big five banks this quarter with modest positive performance while the others all had negative price performance. The total return for BNS this quarter was 1.2 percent.

Implied volatility peaked in May and moved lower through the quarter bottoming at 9.6 percent at the end of the quarter. With the share price continuing to trend higher the fund chose to stay un-written for the second quarter in a row.

The Net Asset Value ("NAV") of the Fund at March 31, 2017 was $19.17 compared to $18.64 per unit on December 31, 2016. The Fund’s two share classes are listed on the Toronto Stock Exchange as SBN and SBN.PR.A. They closed on March 31, 2017 at $7.24 and $10.99 respectively which, when combined, represent a $0.94 discount (4.9%) to the actual NAV.

A distribution of $0.1342 was paid to Class A shareholders and $0.13125 was paid to Preferred shareholders during the quarter. The value of BNS shares at March 31, 2017 was $77.80 compared to $74.76 on December 30, 2016.

Scotiabank reported earnings in line with expectations this quarter. The dividend held steady at $0.74 per share; however a $0.02 increase was announced for next quarter. Price performance was in the middle of pack of big five banks, all of which delivered low single-digit price returns. The total return for BNS this quarter was 5.08%.

Implied volatility started to inch higher this quarter after putting in year-lows in December. With the share price trending higher for much of the period, the Fund chose to stay un-written for this quarter.

The Net Asset Value of the Fund at December 30, 2016 was $18.64 compared to $17.50 per unit on September 30, 2016. The Fund’s two share classes are listed on the Toronto Stock Exchange as SBN and SBN.PR.A. They closed on December 30, 2016 at $6.88 and $10.37 respectively which, when combined, represent a $1.39 discount (7.46%) to the actual net asset value.

A distribution of $0.11915 was paid to Class A shareholders and $0.13125 was paid to Preferred shareholders during the quarter. The value of BNS shares at December 30, 2016 was $74.76 compared to $69.52 on September 30, 2016.

Scotiabank (BNS) had a decent quarter slightly beating analyst estimates as it has done for several consecutive quarters. The dividend was held steady at $0.74 per share. Share price performance lagged the rest of the Big Five this quarter; however, even this weakness did not prevent BNS from delivering the best performance over the whole year among its large competitors. The total return for BNS this quarter was 8.6%.
Implied volatility drifted lower during this quarter and set a multi-year low in December at just over 10%. Given the price uptrend and low volatility, the Fund did very little overwriting this quarter with only 1.1% written on average.

The Net Asset Value (“NAV”) of the Fund at September 30, 2016 was $17.50 compared to $16.35 per unit on June 30, 2016. The Fund’s two share classes are listed on the Toronto Stock Exchange as SBN and SBN.PR.A. They closed on September 30, 2016 at $6.05 and $10.56 respectively which, when combined, represent a $0.89 discount (5.1%) to the actual NAV.

A distribution of $0.0728 was paid to Class A unitholders and $0.13125 was paid to Preferred unitholders during the quarter. The value of BNS shares at September 30, 2016 was $69.52 compared to $63.31 on June 30, 2016.

Once again, BNS beat consensus estimates with Q3 earnings per share of $1.55. The bank was able to report a slight improvement in its energy portfolio exposure which is likely a reason for the relatively good share price performance.

Scotiabank was the best performing bank of the big five in this quarter with a total return of 10.1 per cent. Implied volatility in BNS options remains low making overwriting less attractive; however, the average level of overwriting was 13.2 per cent this quarter up slightly from Q2.

The BNS dividend remained at $0.72 for this quarter, with a $0.02 increase (to $0.74) announced for next quarter.

The net asset value of the Fund at June 30, 2016 was $16.35 compared to $16.41 per unit on March 31, 2016. The Fund’s two share classes are listed on the Toronto Stock Exchange as SBN and SBN.PR.A. They closed on June 30, 2016 at $5.51 and $10.31 respectively which, when combined, represent a $0.53 discount (3.2%) to the actual net asset value.

A distribution of $0.06885 was paid to Class A shareholders and $0.13125 was paid to Preferred shareholders during the quarter. The value of BNS shares at June 30, 2016 was $63.31 compared to $63.47 on March 31, 2016.

Scotiabank slightly beat analyst’s expectations for the second quarter in a row. A charge was taken in the second quarter to cover some strategic changes to the banking network that, as the CEO assures, will be more than self-funding in cost savings.

BNS share price performance was more muted this quarter delivering a total return of 2.02% this period. Volatility remains relatively low and, as such, overwriting activity was reduced from the previous quarter. The average for this quarter was 12.8%.

The BNS common dividend was $0.72 for this quarter which is a $0.02 increase compared to previously announced.

The Net Asset Value of the Fund at March 31, 2016 was $16.41 compared to $15.34 per unit on December 31, 2015. The Fund’s two share classes are listed on the Toronto Stock Exchange as SBN and SBN.PR.A. They closed on March 31, 2016 at $5.96 and $10.15 respectively which, when combined, represent a $0.30 discount (1.83%) to the actual net asset value.

Distributions were suspended to Class A shareholders based on the terms of the prospectus and $0.13125 was paid to Preferred shareholders during the quarter. The value of BNS shares at March 31, 2016 was $63.47 compared to $55.97 on December 31, 2015.

Scotiabank beat analyst’s expectations in Q1 after a week previous quarter. Investors were favorable on these results which resulted in BNS shares delivering the best performance of the big five banks in Canada. Total return for BNS in this quarter was 13.4 percent.

This price rebound followed a multi-year low hit during January. This price weakness led to heightened volatility levels, both realized and implied. The Fund took advantage of this higher volatility to increase overwriting. The average for this quarter was 25.3 percent.

The BNS dividend was held at $0.70 for this quarter but a $0.02 increase has been announced for next quarter.

The Net Asset Value of the Fund at December 31, 2015 was $15.34 compared to $16.22 per unit on September 30, 2015. The Fund’s two share classes are listed on the Toronto Stock Exchange as SBN and SBN.PR.A. They closed on December 31, 2015 at $4.55 and $10.15 respectively which, when combined, represent a $0.64 discount (4.17 per cent) to the net asset value.

Distributions totaling $0.0671 were paid to Class A shareholders and $0.13125 was paid to Preferred shareholders during the quarter. The value of BNS shares at December 31, 2015 was $55.97 compared to $58.83 on September 30, 2015.

After two quarters of upside earnings surprises, Scotiabank missed the consensus on adjusted quarterly earnings this quarter. Once again, BNS was the worst performing bank of the big five tied this quarter with CIBC on a price basis but slightly better on a total return basis at negative 2.5 per cent.

The fundamental picture for the bank still looks relatively good with strong capital ratios and improving margins albeit below management target levels. The only question mark leaving a dark cloud over the stock price is a suit filed against The Bank of Scotia and other banks in December that alleges gold price fixing. The results of this suit may not be known until late in 2016.

Scotia paid a $0.70 divided this quarter, up $0.02 from the previous quarter as previously announced.

After the spike in volatility in August the share price started to move higher so our overwriting activity was reduced. Our average overwritten level for this quarter was 4.6 per cent.

The Net Asset Value (“NAV”) of the Fund at September 30, 2015 was $16.22 compared to $17.90 per unit on June 30, 2015. The fund’s two share classes are listed on the Toronto Stock Exchange as SBN and SBN.PR.A. They closed on September 30, 2015 at $5.99 and $10.25 respectively which, when combined, represent a $0.02 premium (0.12%) to the actual NAV.

Distributions totaling $0.1126 were paid to Class A and $0.13125 was paid to Preferred shareholders during the quarter. The value of BNS shares at September 30, 2015 was $58.83 compared to $64.47 on June 30, 2015.

Once again, Scotiabank delivered a slight beat over the consensus with its quarterly earnings; however, investors were concerned about the weakness in the capital markets portion and the stock price suffered as a result. BNS was the worst performing bank of the Big Five in Canada this quarter with a total return of negative 7.7%.

Investors and management had anticipated that the year-to-date global growth picture would be better and that the bank’s international positioning would benefit, but, as was established later, Canadian operations were offsetting the overseas weakness.

The CEO announced that the bank has agreed to purchase some of Citibank’s retail banking operations in Panama and Costa Rica in a deal consistent with its global expansion strategy. The deal, if approved, would cost $360 million.

Scotiabank paid a $0.68 divided this quarter, unchanged from the previous quarter, but announced a two cent increase for the next dividend.

The volatility of BNS shares started to move higher with the rest of market into the August but settled back down to close the quarter only moderately higher. We did take advantage of the higher volatility to increase our overwriting activity which averaged 12.6% for the quarter.

The Net Asset Value (“NAV”) of the Fund at June 30, 2015 was $17.90 compared to 17.80 per unit on March 31, 2015. The Fund’s two share classes are listed on the Toronto Stock Exchange as SBN and SBN.PR.A. They closed on June 30, 2015 at $7.78 and $10.40 respectively which, when combined, represent a $0.28 premium (1.56%) to the actual NAV.

Distributions totaling $0.12375 were paid to Class A and $0.13125 was paid to Preferred shareholders during the quarter. The value of BNS shares at June 30, 2015 was $64.47 compared to $63.54 on March 31, 2015.

Scotiabank reported numbers that were slightly better than expected for the second quarter of 2015. The dividend was increased by $0.02 to $0.68 as previously announced. Overall returns were not great for any of the big banks this quarter; however, BNS was on top with a total return of 2.53%.

The bank continues to set itself up for future growth in Latin America and is already well-established in the Caribbean. Despite general weakness in these economies so far this year, recent acquisitions have already increased international interest income by 7% year-over-year. There is pressure on foreign net-interest-margin; however, the international operations are still twice as profitable and Canadian operations.

The volatility of BNS shares continued to drift lower in this quarter along with the overall market, and closed out the quarter near the lows. Our model indicated an opportunity to capture some of this volatility through option premium, so we increased our overwriting activity which added to the return of the Fund. We ended the quarter with 25.2% of the portfolio overwritten and averaged 5.4% over the period.

As of March 31, 2015, the Net Asset Value of a combined unit (SBN.PR.A + SBN) was $17.80 versus $18.78 on December 31, 2014.

Preferred shareholder’s received a distribution of $0.13125 per share, while Class A shareholders’ received distributions of $0.125 per share during the quarter.

On March 31, 2015 the closing market price of the Preferred shares and the Class A shares was $10.25 and $7.90 respectively which, when combined, represent a 2.0% premium to the NAV.

Shares of The Bank of Nova Scotia declined by 4.2% from $66.31 on December 31, 2014 to $63.54 on March 31, 2015 and paid a dividend of $0.66 per share during the quarter, unchanged from the previous period.

Scotiabank reported quarterly results roughly in line with the prior quarter and showed slight improvements across many metrics year over year. A dividend increase of $0.02 per share was announced for next quarter and performance though weak, was middle of the pack for the Canadian banks.

The CEO reiterated an interest in Mexico and will be opportunistic regarding possible acquisitions and recently returned from an exploratory trip to Cuba.

Though volatility ran up at year end with the market selling-off, peaking at 25% in January, volatility has drifted lower during the quarter and no call writing was warranted.

The net asset value of the Fund at December 31, 2014 was $18.78 compared to $20.00 per unit on September 30, 2014. The Fund’s two share classes are listed on the Toronto Stock Exchange as SBN and SBN.PR.A. They closed on December 31, 2014 at $8.95 and $10.06 respectively which, when combined, represent a $0.22 premium (1.2%) to the actual net asset value.

Distributions totaling $0.15115 were paid to Class A shareholders and $0.13125 was paid to Preferred shareholders during the quarter. The value of BNS shares at December 31, 2014 was $66.31 compared to $69.27 on September 30, 2014. BNS paid a dividend of $0.66 during the quarter, an increase of $0.02 from the previous quarter.

Scotiabank slightly missed the consensus estimates in their fourth quarter, however, the earnings story for the year was reasonable. Investors took the stock lower by more than 4% or negative 3.3% including dividends. Once again, BNS was the worst performing bank of the big five for the second consecutive quarter and the year overall.

Management took a charge for Latin American and Caribbean operations which weighed heavily on earnings and led to the negative investor reaction. However, operations remain solid overall and shares should regain investor confidence in the coming quarters.

Implied volatility bottomed in the middle of 2014 and began to rally in the third and fourth quarters when the share price began to correct. The share price was weak into the end of the year but still above the lows set early in the 2014. Despite the higher volatility, our model did not indicate that it was appropriate to overwrite BNS this quarter so there was no option activity.

The Net Asset Value of the Fund at September 30, 2014 was $20.00 compared to $20.97 per unit on June 30, 2014. The Fund’s two share classes are listed on the Toronto Stock Exchange as SBN and SBN.PR.A. They closed on September 30, 2014 at $9.51 and $10.03 respectively which, when combined, represent a $0.46 discount (2.3%) to the actual net asset value.

Distributions totaling $0.16815 were paid to Class A shareholders and $0.13125 was paid to Preferred shareholders during the quarter. The value of BNS shares at September 30, 2014 was $69.27 compared to $71.14 on June 30, 2014. BNS paid a dividend of $0.64 during the quarter, unchanged from the previous quarter.

Scotia reported decent earnings this quarter, net income was $1.74 billion. The adjusted earnings per share of $1.41 was roughly in-line with consensus expectations. The market wasn’t overly pleased, however, with the results and took the BNS share price lower. In fact, BNS was the worst performer of the big five banks this quarter with a total return of negative 1.7 per cent.

Management expects to stay the course in the coming quarter and meet any earnings challenges through cost cutting. While no acquisitions have been announced recently, the level of excess capital would suggest that some may be in the offing.

The level of volatility, both actual and implied, remained in the single digits for much of the quarter until earnings were reported. The stock price peaked for the year and volatility rose close to 15 per cent by the end of September. After several months of no overwriting, the level was increased when the stock pulled back. The average for the quarter was 5.5 percent although we ended the period with no calls outstanding.

The Net Asset Value (“NAV”) of the Fund at June 30, 2014 was $20.97 compared to $19.14 per unit on March 31, 2014. The Fund’s two share classes are listed on the Toronto Stock Exchange as SBN and SBN.PR.A. They closed on June 30, 2014 at $9.91 and $10.11 respectively which, when combined, represent a discount of $0.95 (4.5%) to the NAV.

Distributions totaling $0.1468 were paid to Class A and $0.13125 was paid to Preferred shareholders during the quarter. The value of BNS shares at June 30, 2014 was $71.14 compared to $64.03 on March 31, 2014. BNS paid a dividend of $0.64 during the quarter, unchanged from the previous quarter.

The Bank reported a solid second quarter with profit of $1.6 billion, up 5% over the same period last year. The growth in dividends has been slow but steady. It was unchanged in this quarter but set to increase a few cents per share in the third quarter.

BNS Management suggests that continued earnings growth will be sought through organic growth and international acquisition as opposed to share repurchases. Investors responded favorably to the good earnings and solid prospects and took the share price to new all time highs in the second quarter, this, following a comparably weak performance in the first quarter.

With the stock trending higher for most of the quarter, share price volatility continued to sag with implied volatility reaching a low of just over 8% in May. In the face of the price uptrend and single-digit volatility, we reduced our overwriting further and ended the period with no written calls outstanding.

The Net Asset Value (“NAV”) of the Fund at March 31, 2014 was $19.14 compared to $19.86 per unit on December 31, 2013. The Fund’s two share classes are listed on the Toronto Stock Exchange as SBN and SBN.PR.A. They closed on March 31, 2014 at $8.40 and $10.13 respectively which, when combined, represent a $0.61 discount or 3.2 percent to the actual NAV.

Distributions totaling $0.1353 were paid to Class A and $0.13125 was paid to Preferred unitholders during the quarter. The value of Scotiabank (BNS) shares at March 31, 2014 was $64.03 compared to $66.43 on December 31, 2013. BNS paid a common dividend of $0.64 during the quarter, an increase of $0.02 from the previous quarter.

Scotiabank reported a reasonably good first quarter with net earnings up 6.7 percent over the same period last year. However, this is a significant drop from the previous quarter but only because the ING acquisition closed last quarter which provided an immediate one-time bump to earnings. Loan growth is on par with the other major banks.

Notable in this quarter was the action in the stock price. The high price of the quarter occurred on January 1, 2014 and was down 7.7 percent within a month. The share price rose quietly thereafter to finish down about 3.6 percent versus last quarter. The total return was negative 1.7 percent. This was the worst share price performance of the big five banks this quarter.

The negative impact was not driven by fundamentals which were on par with the other banks, but rather by the perceived impact of its exposure to emerging markets. It’s true that BNS has the most international exposure of the major banks contributing about 26 percent of overall earnings; however, this exposure contributed positively earnings.

Emerging markets in general have begun to weaken over the past year due to the expectation of capital outflows resulting from the reduction of quantitative easing, or so called ‘tapering’. With Scotiabank’s overall exposure to emerging markets and the fact that it is focused on the more secure and stable countries, the impact to fundamentals is less than the market would suggest given the share price performance. Concern over emerging markets will likely continue throughout the year; however, we think BNS could see some price recovery when investors appreciate the relative quality of Scotiabank’s emerging market exposure.

The volatility of BNS share price traded within its range of the past few years during the quarter except for a spike in early February to over 17 percent. This followed the price sell-off referred to above. After several months of no option writing, the Fund was able to capture some volatility premium in this quarter and ended the quarter with 23.5 percent of the Fund overwritten.

The Net Asset Value (“NAV”) of the Fund at December 31, 2013 was $19.86 compared to $18.00 per unit on September 30, 2013. The Fund’s two share classes are listed on the Toronto Stock Exchange as SBN and SBN.PR.A. They closed on December 31, 2013 at $8.47 and $10.35 respectively which, when combined, represent a $1.04 discount (5.2%) to the actual NAV.

Distributions totaling $0.13440 were paid to Class A and $0.13125 was paid to Preferred unitholders during the quarter. The value of Scotiabank (BNS) shares at December 31, 2013 was $66.43 compared to $59.00 on September 30, 2013. BNS paid a dividend of $0.62 during the quarter, an increase of $0.02 from the previous quarter.

The fourth quarter brought to an end a reasonably good year for BNSalthough Earnings per Share were down slightly over 2012. BNS was the best performing bank of the Big Five Canadian banks in this quarter delivering a total return of 12.6% despite a mid-month correction in December.

Volatility in BNS peaked at over 20% in mid-2012 then headed lower to below 6% in early 2013. It traded in the range of 10% to 15% for the rest of 2013, though lower than the past few years, which is around its long-term range.

Our overwriting had decreased to zero over the third quarter and no options were written in the fourth quarter in order to maximize the Fund’s participation in the upside stock movement.

BNS shares continue to be a favoured investment among the Big Five Canadian banks because of its diversity of earnings. Each of its five main divisions contributes roughly equal amounts to corporate earnings. One of these divisions is its International Deposit and Lending business which distinguishes itself from the other banks. Net interest margins were weaker in 2013 and may remain subdued in 2014 if the Federal Reserve starts to taper its asset purchases; however, its international exposure will likely bode well for BNS in 2015 and beyond.

The Net Asset Value (NAV) of the Fund at September 30, 2013 was $18.00 compared to $17.47 per unit on June 30, 2013. The Fund’s two share classes are listed on the Toronto Stock Exchange as SBN and SBN.PR.A. The market price of the shares closed at $6.99 and $10.21 respectively on September 30, 2013 which, when combined, represents a $0.80 discount (4.4%) to the actual NAV.

Distributions totaling $0.1171 were paid to Class A shareholders and $0.13125 was paid to Preferred shareholders during the quarter. The value of Scotiabank (BNS) shares at September 30, 2013 was $59.00 compared to $56.22 on June 28, 2013. BNS paid a dividend of $0.60 during this quarter, unchanged from the previous quarter.

Like many Canadian stocks, BNS made new 2013 lows near the end of June. However, consistent with other financials, BNS spent much of the third quarter moving higher. Its total return during this quarter was 6.05%.

Our overwriting activity had increased during the second quarter with the increased volatility and weaker BNS share price. With the third quarter rally underway, our overwriting activity diminished and the Fund had no short call positions as at September 30th.

Scotiabank has delivered high single-digit loan growth in its international operations which continue to be a key driver of earnings. With economic prospects continuing to improve both internationally and domestically, the CFO has stated that Scotiabank will pursue organic growth and acquisitions before considering share repurchases. It also plans to keep dividend growth in line with earnings.

The Canadian economy and global economy in general continue to show moderate improvement which will ultimately benefit Scotiabank. Meanwhile, the Bank of Canada continues to maintain its key lending rate at 1%.

The Net Asset Value (NAV) of the Fund at June 30, 2013 was $17.47 compared to $18.50 per unit on March 31, 2013. The Fund’s two share classes are listed on the Toronto Stock Exchange as SBN and SBN.PR.A. They closed on June 28, 2013 at $6.47 and $10.27 respectively which, when combined, represent a $0.73 discount (4.2%) to the actual NAV.

Class A distributions totaling $0.12425 and Preferred distributions totaling $0.13125 were paid to the respective classes of shareholders during the quarter. The value of Scotiabank (BNS) shares at June 28, 2013 was $56.22 compared to $59.11 on March 28, 2012. BNS paid a dividend of $0.60 during the quarter, an increase of $0.03 per share from the previous quarter.

Towards the end of the first quarter, BNS share was off its highs; however, the uptrend appeared to be still intact. This proved not to be the case. The gains of the first quarter were erased by the end of April. A relief rally followed but failed to test the previous highs. The correction continued for the remainder of the second quarter and closed the month near the lows for the year.

The Fund had reduced overwriting in the previous quarter to more fully participate in the apparent uptrend. When it was clear this trend was broken, we resumed overwriting, thus increasing the average level from 5.2% in the previous quarter to 13.1% in the 2nd quarter. The aggregate overwritten percentage at the end of June was 50%. With the shares not over-valued, no protective puts were purchased in this quarter.

The Canadian economy is still showing signs of slight improvement which will ultimately benefit BNS shares. Meanwhile, the Bank of Canada continues to maintain its key lending rate at 1.00%.

The persistently low interest rate environment is challenging for all the banks, however, Scotiabank maintained its net interest margins quarter over quarter. The results of the last quarter were generally good, led by loan growth which was the best of the big five banks. Growth in international loans should continue to contribute to BNS earnings in the coming year. On the other hand, trading revenues continue to be weak and were down 11% this quarter.

The net asset value (“NAV”) of the Fund at March 31, 2013 was $18.50 compared to $18.23 per unit on December 31, 2012. The Fund’s two share classes are listed on the Toronto Stock Exchange as SBN and SBN.PR.A. They closed on March 28, 2013 at $7.55 and $10.23 respectively which, when combined, represent a $0.72 discount (3.89%) to the actual NAV.

Distributions totaling $0.12915 were paid to Class A shareholders and distributions totaling $0.13125 were paid to Preferred shareholders during the quarter. The value of Bank of Nova Scotia (“BNS”) shares at March 28, 2013 was $59.11 compared to $57.46 on December 28, 2012. BNS paid a dividend of $0.57 during the quarter, unchanged from the previous quarter.

BNS looked poised to continue the rally from Q4 of 2012; however, it started the current year flat. The rally did resume in February and peaked in early March. With the share price trending higher, we chose to reduce the call writing activity to participate more fully in the upside. Our average written position for Q1 of 2013 was 5.2% compared to 29.4% for Q4 of 2012. With BNS rallying, we chose not to purchase protective puts this quarter.

The quiet start to the year followed by further up move sent implied volatility lower. Volatility implied by BNS option prices was well below 10% in January which is a multi-year low. The total compound return for the Fund in Q1 of 2013 was 2.9% compared to 3.9% for BNS shares.

The Canadian economy shows some slight improvement over the previous quarter; however, growth is still frustratingly slow. Overall economic activity is flat to slightly better and inflation remains low. Given these conditions, the Bank of Canada chose to maintain the key lending rate at 1.0%, the same level since late 2010. We expect these conditions to persist for the next quarter and perhaps some improvement into the second half of 2013.

BNS, and all the Canadian banks, have been focused on reducing costs to improve efficiency and have been generally successful in this regard. BNS is arguably the most efficient the big five banks.

Generating profits is challenging in the low interest rate environment which continues to persist. Net interest margins at BNS were negatively impacted this quarter following the acquisition of ING Canada which closed at the end of last quarter.

Traditional business lines such as lending are improving and BNS’s exposure to higher-margin international loan markets should bode well if the recovery continues as expected.

The Net Asset Value (“NAV”) of the Fund at December 31, 2012 was $18.23 compared to $17.96 per unit on September 30, 2012. The Fund’s two share classes are listed on the Toronto Stock Exchange as SBN and SBN.PR.A. They closed on December 29, 2012 at $6.66 and $10.52 respectively which, when combined, represent a $1.05 discount (5.76%) to the actual NAV.

Distributions totaling $0.11875 were paid to Class A shareholders and distributions totaling $0.13125 were paid to Preferred shareholders during the quarter.

The value of Bank of Nova Scotia (BNS) shares at December 29, 2012 was $57.46 compared to $53.92 on September 28, 2012. BNS paid a dividend of $0.57 in Q4, unchanged from the previous quarter.

The uptrend in BNS shares that started in the third quarter stalled in October and corrected into November. After breaking down below the 100-day average in mid-November in a technically bearish move, the price surged through December making near highs for the year and then pulled back slightly in the last few trading sessions of the year.

Excluding the peak in volatility during the mid-November correction, implied volatility on BNS had been in a gradual downtrend for the last few quarters. By the end of this quarter, it was heading for single digit levels.

It was another challenging quarter for covered call overwriting. Volatility trended downward which reduced the option premiums available. A strong and rapid increase in the price of BNS shares after mid-November was somewhat offset by losses on call writing.

The Fund was less overwritten on average this quarter at 29.4% versus 48.1% last quarter. However, the Fund was fully written for part of the quarter which limited its ability to participate in the upsurge.

The total compound return for the Fund in Q4 was 2.9% compared to 7.6% for BNS stock.

The Fund continues to be fully invested in BNS shares. Protective puts were not utilized this quarter.

We had anticipated that volatility would begin its reversion to historic mean levels in Q4; however, that did not materialize. We continue to believe historically low levels are unlikely to persist for an extended period.

We are positive on BNS shares going into 2013 but will look for opportunities to purchase low-cost put protection.

The Net Asset Value of the Fund at September 30, 2012 was $17.96 compared to $17.71 per unit on June 30, 2012. The Fund’s two share classes are listed on the Toronto Stock Exchange as SBN and SBN.PR.A. They closed on September 28, 2012 at $6.36 and $10.28 respectively which, when combined, represent a $1.32 discount or 7.35% to the actual NAV.

Distributions totaling $0.1124 were paid to Class A and $0.13125 were paid to Preferred shareholders during the quarter.

The value of the Bank of Nova Scotia (BNS) shares at September 28, 2012 was $53.92 compared to $52.74 on June 29, 2012. BNS paid a dividend of $0.57 during the quarter, up two cents from the previous quarter.

By June of 2012, BNS had started to retrace the large correction endured during the second quarter. This recovery stalled in July and the price penetrated the lows of the previous quarter before resuming a modest up-trend which persisted throughout the quarter ending September 30, 2012.

Despite this period of monthly corrections and retracements, the volatility of BNS as implied by the listed options fell dramatically from a high of over 24% to a low of 10.7% at the end of September.

The combination of choppy price action and falling implied volatility made it a challenging period for overwriting. The Fund had expected an increase in volatility and price weakness in this quarter; however, neither of which came to pass.

The Fund attempted to capture the price correction early in the quarter and increased its overwriting levels temporarily. And by the end of the quarter, the Fund held no covered calls as the stock was in an uptrend and call premiums were deemed too low. The average overwritten level for Q3 was 48.1%.

The Fund continues to be fully invested in BNS shares. To protect against a decline in the price of BNS shares, protective puts were purchased on approximately 16% of the Fund on average over the quarter.

Volatility is now at a historically low level. In our opinion, volatility cannot go much lower, nor will it persist at these low levels for an extended period, and it is likely to return to more normal levels over the next several months.

The Canadian economy and other markets to which BNS is exposed continue to demonstrate sluggish growth. We continue to anticipate low single-digit growth in the next quarter.

The Net Asset Value (“NAV”) of the Fund at June 30, 2012 was $17.71 compared to $18.99 per unit on March 31, 2012. The Fund’s two share classes are listed on the Toronto Stock Exchange as SBN and SBN.PR.A. The closing prices for the second quarter of 2012 were $6.25 and $10.13 respectively and, when combined, represent a $1.33 discount or 7.51% to the actual NAV.

Distributions totaling $0.12665 were paid to Class A and $0.13125 were paid to Preferred shareholders during the quarter.

The price of the Bank of Nova Scotia (“BNS”) shares at June 29, 2012 was $52.74 compared to $55.88 on March 30th. BNS paid a dividend of $0.55 during this quarter, unchanged from the first quarter.

After drifting lower for several months, implied volatility for BNS turned at the end of the first quarter and reached a high in May at 24.2%. The higher implied volatility levels have helped generate higher call option premiums for the Fund, yet realized volatility in the shares itself has been greater than the implied making a challenging environment for overwriting.

We continued to selectively write call options during this quarter with an average overwritten level of 20.7% and ended the quarter with 50% of BNS shares overwritten.

The total return of the Fund for the second quarter was negative 5.4% compared to negative 4.6% for the BNS stock.

The Fund continues to be fully invested in BNS shares. To protect against a decline in the price of BNS shares, protective puts were purchased on approximately 10% of the Fund on average over the quarter.

We expect the third quarter of 2012 to be similar to the same period last year. Negative headlines will likely increase volatility to above normal levels and produce further weakness in share prices.

We also expect that the high-margin international footprint of BNS will continue to bode well for the stock, on a relative basis, as the economy continues to improve.

The net asset value (“NAV”) of the Fund at March 31, 2012 was $18.99 per Unit compared to $17.83 on December 31, 2011. The Fund’s two share classes are listed on the Toronto Stock Exchange as SBN and SBN.PR.A. They closed on March 30, 2012 at $7.76 and $10.31 respectively which, when combined, represent a $0.92 discount (or 4.84%) to the actual NAV.

Distributions totaling $0.12085 were paid to Class A and $0.13125 were paid to Preferred shareholders during the quarter.

The value of the Bank of Nova Scotia (BNS) shares at March 30, 2012 was $55.88 compared to $50.83 on December 30, 2011. BNS paid a dividend of $0.52 during the quarter, unchanged from the fourth quarter of 2011.

Volatility for the broad index, as well as BNS, continued to drift lower into the first quarter of 2012. Implied volatility for BNS hit a low of 11.6% on March 26, 2012 after previously peaking close to 40% in August last year. This dramatic drop in volatility has greatly impacted our ability to generate option premium through our covered writing strategies.

Nevertheless, we continued to selectively write BNS during this quarter with an average overwritten level of 19.2% but ended the quarter with no option positions. The Fund started the quarter outperforming BNS shares, however, this outperformance was eroded as call positions moved against the Fund after a couple of strong weekly surges in the price of BNS. The total compound return for the Fund in the first quarter was up 8.0% compared to 11.0% for BNS stock.

The Fund continues to be fully invested in BNS shares and no protective puts were purchased during this quarter.

First quarter earnings for BNS were slightly better than consensus expectations and the stock was able to deliver positive quarterly returns for the first time since the second quarter of 2011 and beat the average return of the big five banks, but remains firmly in the middle of pack.

Volatility is likely to increase over the balance of the year driven by headline news in much the same way it was in the third quarter of 2011.

It is also expected that the high-margin international footprint of BNS will bode well for the stock as the economy continues to improve.

The Net Asset Value (“NAV”) per Unit at December 31, 2011 was $17.83 compared to $18.68 on September 30, 2011. The closing prices of the Class A share and the Preferred shares on December 29, 2011 were $6.00 and $10.35 respectively which, when combined, represent a $1.48 discount (-8.3%) to the NAV per Unit.

Distributions totaling $0.12015 were paid to Class A and $0.13125 were paid to Preferred unitholders during the quarter.

The value of the Bank of Nova Scotia (“BNS”) shares declined by 3.6% closing on December 29, 2011 at $50.83 compared to $52.72 on September 30th, 2011. BNS paid a dividend of $0.52 during the quarter, unchanged from Q3.

Volatility for the year peaked this quarter with the S&P/TSC 60 VIX (“VIXC”) reaching just below 40% in early October. The implied volatility on BNS went from 13% in late July to 38% in the first week of August. It worked its way lower for the remainder of the year returning to pre-crisis levels. Investor uncertainty, as measured by volatility, spiked due to the European sovereign debt crisis. While some progress has been made, very little was resolved in 2011 yet volatility continued to soften. The Manager of the Fund expects volatility to increase again in 2012 driven by headlines in much the same way it was in Q3 of 2011.

The Fund attempted to monetize as much volatility as possible during the quarter, with average overwriting levels over 40% during the three months. The Fund ended the quarter with 16.3% of the Fund overwritten. With volatility falling throughout most of the quarter, options premiums were not enough to offset the limited upside sold away with our overwriting activity. The Fund remained fully invested for most of the quarter but purchased puts when the view on BNS turned negative. Unfortunately, the BNS share price declined immediately after the expiration of the puts. The Fund delivered a total compound return for the quarter of negative 3.2% compared to negative 2.6% for the BNS shares.

Reported earnings this quarter were basically in line with expectations once again; however, share price performance was second worst (next to Bank of Montreal) of the big five banks for the second consecutive quarter.

Strength in international operations was a bright spot for BNS in 2011. BNS continues to be the Canadian bank with the largest international exposure. More than one quarter of its loans are made outside of North America. While growth remains sluggish, BNS will benefit more than its competitors when activity levels do improve due to its higher-margin international footprint.

The net asset value of the Fund at September 30, 2011 was $18.68 compared to $20.76 per unit on June 30, 2011. The Fund’s two share classes are listed on the Toronto Stock Exchange as SBN and SBN.PR.A. They closed on September 30, 2011 at $6.91 and $10.30 respectively which, when combined, represent a $1.47 discount (7.87%) to the actual net asset value.

Distributions totaling $0.1387 were paid to Class A and $0.13125 were paid to Preferred unitholders during the quarter.

The value of BNS shares at September 30, 2011 was $52.72 compared to $58.10 on June 30, 2011. BNS paid a dividend of $0.52 during the quarter, unchanged from the second quarter.

Volatility, which had been relatively mild for the first half of 2011 virtually doubled in mid-summer. Uncertainly over the European debt crisis and policy gridlock in the U.S. left investors perplexed and divided as to how to properly position.

It was a difficult quarter for trading with unusually large share-price swings both intraday and day over day. The Fund was able to monetize much of this volatility to offset the overall negative price action and continues to maintain an overwritten position over 25% going into the fourth quarter in anticipation of continued volatility.

BNS continues to improve its profitability and capital ratios as expected. Reported earnings this quarter were basically in line with expectations; however, share price performance was second worst (next to Royal Bank) of the big five banks at negative 8.4% total return.

The bank fared relatively well compared to its peers in M&A revenues, however, other capital market activity was weak.

The international banking business continues to grow organically and the newly expanded wealth business may provide opportunity to leverage this growth in the coming year.

The net asset value of the Fund at June 30, 2011 was $20.76 compared to $21.23 per unit on March 31, 2011. The Fund’s two share classes are listed on the Toronto Stock Exchange as SBN and SBN.PR.A. They closed on June 30, 2011 at $8.70 and $10.25 respectively which, when combined, represent a $1.81 discount -8.7% to the actual net asset value.

Distributions totaling $0.16545 were paid to Class A and $0.13125 were paid to Preferred unitholders during the quarter.

The value of BNS shares at June 30, 2011 was $58.10 compared to $59.49 on March 31, 2010. BNS paid a dividend of $0.52 during the quarter, unchanged from Q1. BNS raised the dividend in Q1 to $0.52 from $0.49 in the previous quarter.

While volatility drifted lower during most of the quarter, the fund was able to generate sufficient option premium to outperform BNS shares during the quarter.

BNS reported Q2 earnings slightly better than consensus estimates and was the best performer of the big five banks in this quarter. BNS is the most internationally diversified Canadian bank and this help drive better profits this quarter.

The recent acquisition of Dundee Wealth also contributed to improved year over year earnings.

Capital ratios continued to increase on a year over year basis. BNS is expected to improve its profitability and capital ratios in 2011 due to improving credit, good expense control and leverage to a slowly improving economy.

Redemption Deadlines
Class A Shares and Preferred Shares may be surrendered at any time for retraction by the Fund but will be retracted only on the last day of a month (a “Valuation Date”). Shares surrendered for retraction by a holder of Class A Shares or Preferred Shares at least ten business days prior to a Valuation Date will be retracted on such Valuation Date and such shareholder will receive payment on or before the 15th business day following such Valuation Date.

Annual Retraction
A shareholder may concurrently retract one Preferred Share and one Class A Share (referred to as a Unit) on the November Valuation Date of each year at a retraction price equal to the NAV per Unit on that date less costs. Costs may include an amount equal to the aggregate of all brokerage fees, commissions and other costs incurred by the Fund in connection with such payment, including, but not limited to, costs incurred in liquidating securities held in the Fund’s portfolio.

Monthly Retraction
The monthly retraction prices for the Class A Shares will be equal to 95% of the lesser of:

1. the difference between (i) the NAV per Unit determined as of the relevant Valuation Date and (ii) the cost to the Fund of purchasing a Preferred Share in the market for cancellation; and
2. the difference between (i) the Unit Market Price (as defined below) and (ii) the cost to the Fund of purchasing a Preferred Share in the market for cancellation.

The “Unit Market Price” means the sum of the Class A Market Price and the Preferred Market Price.

The “Class A Market Price” means the weighted average trading price of the Class A Shares on the principal stock exchange on which the Class A Shares are listed (or, if the Class A Shares are not listed on any stock exchange, on the principal market on which the Class A Shares are quoted for trading) for the 10 trading days immediately preceding the applicable Valuation Date.

The “Preferred Market Price” means the weighted average trading price of the Preferred Shares on the principal stock exchange on which the Preferred Shares are listed (or, if the Preferred Shares are not listed on any stock exchange, on the principal market on which the Preferred Shares are quoted for trading) for the 10 trading days immediately preceding the applicable Valuation Date.

The monthly retraction prices for the Preferred Shares will be equal to 95% of the lesser of:

1. the NAV per Unit determined as of the relevant Valuation Date less the cost to the Fund of the purchase of a Class A Share in the market for cancellation;
2. the Unit Market Price less the cost to the Fund of purchasing a Class A Share in the market for cancellation; and
3. $10.00.

For this purpose, the cost of the purchase of a Preferred Share or a Class A Share will include the purchase price of the share, commission and such other costs, if any, related to the liquidation of any portion of the Portfolio to fund the purchase of such share. Any declared and unpaid distributions payable on or before a Valuation Date in respect of Class A Shares or Preferred Shares tendered for retraction on such Valuation Date will also be paid on the retraction payment date.