QUARTERLY FACTSHEET

GENERAL INFORMATION DEALING DETAILS: The Scotiabank Mutual Funds that are distributed trade daily at Net Asset Value (each respective trading day being the Dealing Day). A duly signed Purchase Confirmation with cleared funds must be received by the designated cut-off time on the relevant Dealing Day. Cleared funds received prior to daily valuation will be held without interest until the next Dealing Day. Initial minimum investment is US $5,000 in any portfolio, with subsequent investments of US $1,000. Initial minimum investment is US$1,000 in any one Fund where a Pre-Authorized Contribution (min. US $100 per month) is also established. Net Asset Value information of the Scotiabank Mutual Funds can be found on Bloomberg, in the equities section, and on the Cayman Islands Stock Exchange (CSX), website www.csx.ky under “Scotiabank”. This report does not constitute an invitation to purchase or sell shares of the Funds. Information also available directly from: Scotiabank & Trust (Cayman) Ltd. 6 Cardinal Ave, Box 689 Grand Cayman, KY1 1107 (345) 949-7666 † Scotiabank Mutual Funds is the brand name under which the Scotiabank group of companies, including Scotiabank & Trust (Cayman) Ltd. and Scotia DBG Fund Managers Limited markets and distributes mutual funds. Scotiabank & Trust (Cayman) Ltd., is a corporate entity separate from, although wholly owned by, The Bank of Nova Scotia and distributes the Funds noted within this publication. Rates of return longer than one year are annualized. Figures do not reflect the effect of any applicable sales charges or redemption fees, which would lower these returns. Asset Management Service portfolio returns are the historical annual compounded total return assuming the investment strategy recommended by the asset allocation model used. In calculating portfolio return, weights for each of the included funds are assumed to be as indicated in the portfolio breakdown. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments and the use of an asset allocation service. Please read the prospectus for the Scotiabank Mutual Funds which are used to create each asset allocation model before selecting the Asset Management Service. Important information about Scotiabank Mutual Funds is contained in the Funds’ prospectus. Prospectus copies are available from your local Investment Advisor, the Bank of Nova Scotia and affiliates' branches. Share values and investment returns for the Funds will fluctuate. Past performance is no guarantee of future performance and may not be repeated. Mutual Funds are not covered by your local Deposit Insurance Corporation or other government deposit insurer. Scotiabank Mutual Funds are not insured by, nor guaranteed by, The Bank of Nova Scotia or its affiliates. ® Standard and Poor’s, S&P and S&P 500 are trademarks of The McGraw-Hill Companies and have been licensed for use by The Bank of Nova Scotia and its subsidiary companies. (07/10) * Trademark of The Bank of Nova Scotia, used under licence.

Scotiabank Mutual Funds June 30, 2010

Scotiabank Money Market Fund FUND DESCRIPTION

MARKET COMMENTARY

This Fund is designed to provide safety of capital and liquidity. It invests in high-quality, short-term securities and obligations issued by governments, corporations, banks and trust companies. These securities are not subject to withholding taxes.

The Scotiabank Money Market Fund returned 0.02% for the 2nd quarter of 2010 relative to a return of 0.04% for its benchmark, the Merrill Lynch 0-3 Month US T-bill Index. The Fund’s yield increased to 0.12% as at June 30, 2010. The Fund increased its exposure to floating rate notes in the 2nd quarter. Floating rate notes offered a higher yield than comparable commercial paper and increased in value based on the forecast for higher interest rates later in 2010. The Fund also increased its holdings of banker acceptance notes and decreased its exposure to government guaranteed bonds to benefit from an increase in yields. The average term of the portfolio remained at about 50 days. Most market participants expect the US Federal Reserve and the Bank of Canada to hold rates steady for most of this year and have them remaining at or near their current level. Both the US and Canadian Central Banks have maintained their low interest rate policies as Q1 economic growth was weaker than expected and inflation remained within its targeted range.

Investment objective: The objective of this Fund is to earn interest income and provide liquidity, with a high level of safety. Inception date: November 1999.

FUND ADVISOR Scotia Asset Management is manager for mutual fund trust, private client, fee based and institutional mandates with assets that exceed $39 billion.

SALES CHARGES There is no sales charge applicable to this Fund.

ASSET CLASS Cash and Cash Equivalents.

PORTFOLIO BREAKDOWNˆ

FUND PERFORMANCE

Government Issues

34.3

Net Asset Value: US $13.0463 (as of June 30, 2010).

Corporate Issues

65.7

The Fund's yield was 0.02% for the quarter compared to the benchmark's, 3-month US Treasury Bills, yield of 0.04%.

Cash

0.0

Total

100.0

Returns: 3 mth

0.02%

6 mth

0.02%

1 yr.

0.05%

%

10 LARGEST HOLDINGS:

1.51%†

3 yr. 5 yr.

2.63%†

10 yr.

2.37%†

Since Inception (Nov.’99): 2.54%† Net Asset Values and performance figures are net of all Fund expenses.

†Average annual compound rate of return.

Fund %

Province of Ontario

Jul 27/10

6.1

Province of Ontario 05/12 Var

May 22/12

5.5

Province British Columbia

Jun 18/10

5.4

Royal Bk of Canada BBA Libor USD 1 Mth

Dec 09/10

5.2

Pfizer Inc 03/11FLTG

Mar 15/11

5.1

Bank of Nova Scotia

Jul 12/10

4.9

Citigroup FDG Inc Tranche SR 00001

Jul 30/10

3.8

KFW Medium Term NTS Book

Mar 02/11

3.7

National Bank Du Canada

Jun 22/10

3.7

Bank of Montreal 08/12 VAR

Aug 14/12

3.5

ˆ As of May 31, 2010

2

3

Scotiabank US Dollar Bond Fund FUND DESCRIPTION

MARKET COMMENTARY

This Fund is designed as a mid-term, broad market investment grade US Dollar denominated bond fund. It invests primarily in US Dollar denominated securities and obligations issued or guaranteed by foreign governments and/or agencies, and corporations.

The Scotiabank US Dollar Bond Fund returned 4.00% over the past 3 months and 8.56% over the past 12 months relative to a return of 3.83% and 9.84%, respectively, for its benchmark, the Merrill Lynch US Corporate & Government Master Total Return Index.

Investment objective: The objective of this Fund is to earn income and provide some potential for capital gains. Inception date: January 1993.

FUND ADVISOR Scotia Asset Management is manager for mutual fund trust, private client, fee based and institutional mandates with assets that exceed $39 billion.

SALES CHARGES A front-end load may apply.

The Fund was primarily invested in high quality fixed income securities in the 2nd quarter. This positioning contributed positively to performance as corporate and government bonds with a lower credit quality decreased in value. These lower rated bonds dropped in value due to the concern that a slowdown in global economic growth would result in an increase in default rates. Most market participants expect the US Federal Reserve and the Bank of Canada to hold rates steady for most of this year and have them remaining at or near their current level. Both the US and Canadian Central Banks have maintained their low interest rate policies as Q1 economic growth was weaker than expected and inflation remained within its targeted range.

ASSET CLASS Income.

PORTFOLIO BREAKDOWNˆ

FUND PERFORMANCE Net Asset Value: US $2.4769 (as of June 30, 2010). The Fund returned 4.00% for the quarter, compared to Merrill Lynch Corporate & Government Bond Index, which returned 3.83%.

Fund %

Index/ Benchmark%

US Treasuries and Agencies

38.5

61.5

Other Governments and Supranationals

20.6

8.2

Corporates

40.9

30.3

100.0

100.0

Total

Returns: 3 mth

10 LARGEST HOLDINGS:

4.00%

6 mth

5.51%

1 yr.

8.56%

3 yr.

7.47%† 4.99%†

5 yr.

5.91%†

10 yr.

Since Inception (Jan.’93):

5.32%†

Net Asset Values and performance figures are net of all Fund expenses.

Fund %

US Treasury NTS 03/11 Fixed .875

Mar 31/11

6.3

US Treasury BDS 4 1/2

Feb 15/36

5.4

Kreditanstalt fur Wiederaufbau

Jul 16/18

5.1

Intl BK for Recon + DEV

Jan 19/23

4.3

Nova Scotia Prov CDA DEB

Jul 01/19

4.2

Inter Amern Dev Bk Global Tranche

Mar 15/13

4.1

Export Development Canada

Sep 24/12

4.0

US Treasury BDS 6 1/4

Aug 15/23

4.0

US Treasury N/B 05/19 Fixed 3.125

May 15/19

3.9

New Brunswick Prov CDA

Feb 15/13

3.6

ˆ As of May 31, 2010 † Average annual compound rate of return.

4

5

Scotiabank Global Growth Fund FUND DESCRIPTION

MARKET COMMENTARY

This Fund invests in high-quality global securities, providing investors with an opportunity to achieve long-term capital growth. Investments may include equities, preferred stocks and derivatives.

The Scotiabank Global Growth Fund returned -14.41% over the past 3 months and 5.52% over the past 12 months relative to a return of -13.26% and 8.02%, respectively, for its benchmark, the MSCI World Free Index. The Fund lagged its benchmark primarily due to negative security selection. Key detractors from fund performance included securities from the Consumer Discretionary sector such as Nokia, Royal Caribbean Cruises and Esprit. Key contributors to fund performance included securities from the Consumer Staples sector, including Altria and Carlsberg. All sectors declined during the quarter. The Fund benefitted from an overweight position in the conservative Telecommunications sector. Volatility returned to global financial markets in the 2nd quarter as investors grew increasingly concerned about unsustainable levels of government debt in Greece and other European countries. As volatility rose, stocks fell in both developed and emerging markets and bonds with a lower credit quality dropped in value. Economic growth in the US was nearly 3% in the first quarter due to increased exports but it is expected to slow in the upcoming months. First quarter GDP growth was 1.2% in Japan, 0.2% in Europe and 11.9% in China. Chinese economic growth has returned to pre-recessionary levels.

Inception date: August 1994.

FUND ADVISOR AllianceBernstein brings together more than three decades of Alliance Capital Management’s expertise in growth investing and Bernstein’s excellence in value management. With over US $740 billion in assets under management, AllianceBernstein’s clients include private and public pension plans, foundations and endowments, insurance companies and governments in more than 45 countries. Over 265 analysts operating in 12 countries provide expert global market research.

SALES CHARGES A front-end load may apply.

PORTFOLIO BREAKDOWNˆ

ASSET CLASS

LARGEST HOLDINGS:

Growth.

News Corp, Shell, Pfizer, Nissan, Vodafone

FUND PERFORMANCE Net Asset Value: US $1.6606 (as of June 30, 2010). The Fund returned -14.41% for the quarter, compared to MSCI World Index, which returned -13.26%.

Finland 0.4% Australia 1.9% Canada 4.4% Spain 1.5% Singapore 0.3% France 5.7% Switzerland 0.7% Italy 1.7% Austria 0.3% Japan 10.7%

United States 52.1%

Returns: 3 mth 6 mth

-14.41% -13.15%

1 yr.

5.52%

3 yr. -18.79%† 5 yr. 10 yr.

Hong Kong 1.9% Germany 4.9%

SECTORS:

Netherlands 1.0% Denmark 1.4% United Kingdom 11.2% Index/ Fund % Benchmark %

Financials Consumer Discretionary Energy Industrials Consumer Staples Information Technology Health Care Telecommunication Services Materials Utilities Total

19.7 16.7 11.9 10.1 8.8 8.5 8.2 6.1 5.8 4.3 100.00

-4.47%† -3.00%†

Since Inception (Aug.’94): 3.25%† Net Asset Values and performance figures are net of all Fund expenses.

†Average annual compound rate of return.

6

ˆ As of May 31, 2010

7

20.6 10.1 10.4 10.2 12.2 11.1 9.8 4.1 7.3 4.3 100.00

Scotiabank US Growth Fund FUND DESCRIPTION

MARKET COMMENTARY

This Fund invests in securities that comprise that Standard & Poor;s 500 Index. These investments are weighted in such a manner that investment returns will closely match the S&P 500 total Return Index.

The Scotiabank U.S. Growth Fund returned -10.50% over the past 3 months and 11.86% over the past 12 months relative to a return of -11.43% and 14.43%, respectively, for its benchmark, the S&P 500 TR Index. The return for the S&P 500 and each of its sectors was negative in the 2nd quarter. Defensive sectors, such as Utilities, Telecom and Consumer Staples, significantly outperformed all other sectors of the index with a return of -3.74%, -4.24%, and -8.14% in the 2nd quarter, respectively. The Materials sector underperformed all other sectors in the index with a quarterly return of -15.32%. U.S. equities were adversely affected in the 2nd quarter by Europe’s debt crisis and the weakening of the U.S. economy. The Federal Reserve indicated that its Funds Target rate would remain at a record low of between 0 and 0.25% for an extended period. The ISM Index, a key indicator of economic activity in the US, fell in June to a four month low which is indicative of a slowing of the US economy. Core inflation is expected to be subdued for the foreseeable future.

Investment objective: The objective of this Fund is long-term capital growth. Inception date: November 1999.

FUND ADVISOR State Street Global Advisors (SSGA) is the investment management arm of State Street Corporation. It is an industry leader with $1 trillion in assets under management, whose focus is on delivering investment strategies and integrated solutions to institutional and individual investors worldwide. As one of the world’s largest investment managers, SSGA has established a global presence with 33 offices and 9 investment centers.

PORTFOLIO BREAKDOWNˆ

SALES CHARGES A front-end load may apply.

Exxon Mobil Corp: A global integrated energy company Apple Inc: A world leader in digital music, mobile communications and personal computers Microsoft Corp: A leading software applications developer Procter & Gamble: A global provider of consumer products General Electric Co: A global industrial firm IBM: A world leader in information technologies and networking systems Johnson & Johnson: A leading provider of healthcare products and services Bank of America Corp: A bank and financial holding company JP Morgan Chase & Co: A financial holding company Chevron Corp: A global integrated energy company

ASSET CLASS Growth.

FUND PERFORMANCE Net Asset Value: US $6.3871 (as of June 30, 2010). The Fund returned -10.50% for the quarter compared to the S&P 500 Index, which returned -11.43%. Returns: 3 mth

-10.50%

6 mth

-6.35%

1 yr. 3 yr. 5 yr. 10 yr.

Fund %

10 LARGEST HOLDINGS:

11.86% -11.90%† -3.32%† -4.08%†

Since Inception (Nov.’99): -4.13%† Net Asset Values and performance figures are net of all Fund expenses.

†Average annual compound rate of return.

SECTORS:

2.4 2.0 1.8 1.8 1.7 1.6 1.6 1.6 1.5 %

Information Technology Financials Health Care Consumer Staples Energy Industrials Consumer Discretionary Utilities Materials Telecommunication Services Total

18.9 16.3 11.7 11.3 10.8 10.5 10.5 3.6 3.5 2.9 100.0

ˆ As of May 31, 2010

8

2.9

9

Scotiabank Canadian Growth Fund FUND DESCRIPTION

MARKET COMMENTARY

This Fund invests in growth-oriented, high-quality equity securities listed on Canadian stock exchanges. Some highquality Canadian Dollar denominated corporate paper may also be purchased. Investment objective: The objective of this Fund is long-term capital growth. Inception date: August 1994.

A front-end load may apply.

The Scotiabank Canadian Growth Fund returned -11.93% over the past 3 months and 12.36% over the past 12 months relative to a return of -9.52% and 22.71%, respectively, for its benchmark, the S&P/TSX Composite TR Index. The Fund underperformed the benchmark for the 2nd quarter primarily due to negative security and sector selection in the financial and energy sectors. The Fund had a strong preference for banks over life insurance companies given their earnings forecasts. Holdings in the energy sector detracted from performance as the price of oil dropped. The Fund’s sector exposure continued to focus on oil related companies given that the outlook for the price of oil remained positive. The Canadian equity market slowed in the 2nd quarter, after recording 5 consecutive quarters of outperformance, but it continued to outperform other world equity markets. Real GDP increased 1.5% in the first quarter of 2010 to mark the seventh consecutive monthly gain. The Bank of Canada’s key interest rate target increased to 0.50% in June from 0.25%. Core inflation increased to 2% in the 2nd quarter and remained within the targeted range.

ASSET CLASS

PORTFOLIO BREAKDOWNˆ

FUND ADVISOR Scotia Asset Management is manager for mutual fund trust, private client, fee based and institutional mandates with assets that exceed $39 billion.

SALES CHARGES

Growth.

FUND PERFORMANCE Net Asset Value: US $2.5287 (as of June 30, 2010). The Fund returned -11.93% for the quarter compared to the S&P TSX Index, which returned -9.52%. Returns: 3 mth -11.93% 6 mth

-6.91%

1 yr. 3 yr.

12.36% -6.11%† 5.57%†

5 yr. 10 yr.

1.06%†

Since Inception (Aug. ’94): 6.03%† Net Asset Values and performance figures are net of all Fund expenses.

†Average annual compound rate of return.

10

Fund %

10 LARGEST HOLDINGS: Royal Bank: Canada’s largest listed company TD Bank: A core Canadian bank that has a large presence in the United States Suncor: An oil and gas company with a dominant presence in the Alberta Oil Sands Barrick Corp: The world’s largest gold producer, with operations and projects in 10 countries Canadian Natural Resources: A large-cap independent producer of oil and natural gas Goldcorp Inc: Engaged in the acquisition, exploration, development and operation of precious metal properties Research in Motion: A world leader in mobile messaging solutions Potash Corp: The world’s leading producer of potash, with approx. 22% of world capacity Can Imp Bk of Commerce: A diversified financial institution Manulife Financial Corp: Canada's largest global insurer SECTORS: Financials Energy Materials Industrials Telecom Consumer Discretionary Information Technology Consumer Staples Utilities Health Care Total ˆ As of May 31, 2010

11

7.2 6.8 4.9 4.5 3.9 3.7 3.5 3.4 3.1 3.0

Fund %

Index/ Benchmark %

30.8 26.5 19.5 6.4 4.6 4.3 3.6 3.2 1.1 0.0

30.6 26.4 20.3 5.6 4.5 4.7 3.2 2.6 1.6 0.5

100.0

100.0

Scotiabank Preservation of Capital Portfolio

Scotiabank Conservative Income Portfolio

PORTFOLIO DESCRIPTION

PORTFOLIO DESCRIPTION

Preservation of Capital Your primary objective is to protect your principal. You can only accept minimal risk that your investments might decline in value even in the short term. You are willing to accept potentially the lowest return in exchange for the highest security.

Conservative Income Your primary objective is to earn a modest income while protecting your principal. You are willing to accept modest return in exchange for greater security. You accept that the value of your portfolio will fluctuate modestly from time to time.

Portfolio Breakdown

Portfolio Breakdown Income 70% Scotiabank US Dollar Bond Fund

Income 80% Scotiabank US Dollar Bond Fund

Growth 10% Scotiabank US Growth Fund Scotiabank Global Growth Fund Scotiabank Canadian Growth Fund

Cash Equivalent 20% Scotiabank Money Market Fund

Portfolio Commentary The Preservation of Capital Portfolio showed continued stabilization into the second quarter of 2010. Much of this positive performance can be attributed to another solid quarter of positive performance of the large US Dollar Bond Fund weighting. Improved yields on money market instruments in the last two months of the quarter also provided some additional stability to the overall portfolio. Asset Management Service Returns: 1 Mo

Portfolio Commentary The Conservative Income Portfolio maintained a positive result for the second quarter of 2010. Its largest weighting, the US Dollar Bond Fund performed well as concerns in European equity markets benefitted US fixed income markets. A higher trending yield on the Scotiabank Money Market Fund over May and June also provided additional support. The recent volatility in global equity markets via Europe impacted negatively on the small 10% equity component of the portfolio over the quarter. Asset Management Service Returns:

1.36%

3 Mo

Cash Equivalent 20% Scotiabank Money Market Fund

3.26%

6 Mo

1 Mo

4.48%

3 Mo 6.67%

1 Yr.

6 Mo

5.43%†

2 Yr.

1.51% 2.95%

1 Yr.

7.09% 4.07%†

2 Yr.

Year to date return: 4.48% Since inception (Jan. ‘08): 4.27%†

Year to date return: 2.95% Since inception (Jan. ‘08): 3.27%†

Growth of US$ 10,000: 12,000

0.73%

$11,075.43

Growth of US$ 10,000: 12,000

$ 10,818.07

10,000 10,000 8,000

21-01 31-03 30-06 30-09 31-12 31-03 30-06 30-09 31-12 31-03 30-06 2008 2008 2008 2008 2008 2009 2009 2009 2009 2010 2010

Fund performance has been updated to reflect balances triggered through the Asset Managment Service (AMS). Performance figures are net of all fund expenses and annual AMS fee. † Average annual compound rate of return

8,000

21-01 31-03 30-06 30-09 31-12 31-03 30-06 30-09 31-12 31-03 30-06 2008 2008 2008 2008 2008 2009 2009 2009 2009 2010 2010

Fund performance has been updated to reflect balances triggered through the Asset Managment Service (AMS). Performance figures are net of all fund expenses and annual AMS fee. † Average annual compound rate of return

12

13

Scotiabank Income & Conservative Growth Portfolio

Scotiabank Balanced Income & Growth Portfolio

PORTFOLIO DESCRIPTION

PORTFOLIO DESCRIPTION

Income & Conservative Growth Your primary objective is a high level of income with some growth potential. You accept that the value of your portfolio will fluctuate modestly from time to time.

Balanced Income & Growth Your primary objective is growth with some income and exposure to the three major asset classes. You accept that the value of your portfolio will fluctuate moderately from time to time.

Portfolio Breakdown Growth 30% Scotiabank US Growth Fund Scotiabank Global Growth Fund Scotiabank Canadian Growth Fund

Portfolio Breakdown Growth 45% Scotiabank US Growth Fund Scotiabank Global Growth Fund Scotiabank Canadian Growth Fund

Cash Equivalent 15% Scotiabank Money Market Fund

Cash Equivalent 15% Scotiabank Money Market Fund

Income 55% Scotiabank US Dollar Bond Fund

Portfolio Commentary The Income & Conservative Growth Portfolio was in negative territory for the second quarter. Global growth momentum in the first quarter has been hampered by increasing volatility from European solvency issues during the second quarter of 2010. The large 55% weighting in the US Dollar Bond Fund provided much needed stability to the overall portfolio and helped stabilize the portfolio against the negative impact that global equity markets are currently enduring Asset Management Service

Portfolio Commentary The Balanced Income & Growth Portfolio performed negatively over the second quarter. All three underlying equity funds were affected by the growing economic concerns in Europe. The month of May was particularly volatile as fears of the contagion spread. The positive contribution of the 40% US Dollar Bond Fund weighting provided some much needed relief to the challenges that global equity markets faced throughout the second quarter. Asset Management Service Returns:

Returns: 1 Mo

Income 40% Scotiabank US Dollar Bond Fund

-0.43%

1 Mo

3 Mo -1.66% 6 Mo

3 Mo 0.31%

1 Yr. 2 Yr.

6 Mo 8.26%

-1.85% 8.57%

1 Yr.

1.28%†

2 Yr.

Year to date return: 0.31% Since inception (Jan. ‘08): 1.15%†

-1.48%† Year to date return: -1.85% Since inception (Jan. ‘08): -0.97%†

Growth of US$ 10,000:

Growth of US$ 10,000: 12,000

12,000

10,000

8,000

-1.37% -4.14%

$ 10,284.05

10,000 $9,765.48 8,000

21-01 31-03 30-06 30-09 31-12 31-03 30-06 30-09 31-12 31-03 30-06 2008 2008 2008 2008 2008 2009 2009 2009 2009 2010 2010

21-01 31-03 30-06 30-09 31-12 31-03 30-06 30-09 31-12 31-03 30-06 2008 2008 2008 2008 2008 2009 2009 2009 2009 2010 2010

Fund performance has been updated to reflect balances triggered through the Asset Managment Service (AMS). Performance figures are net of all fund expenses and annual AMS fee.

Fund performance has been updated to reflect balances triggered through the Asset Managment Service (AMS). Performance figures are net of all fund expenses and annual AMS fee.

† Average annual compound rate of return

† Average annual compound rate of return

14

15

Scotiabank Moderate Growth Portfolio

Scotiabank Aggressive Growth Portfolio

PORTFOLIO DESCRIPTION

PORTFOLIO DESCRIPTION

Moderate Growth Your primary objective is to achieve a high level of growth with some income potential. You accept that the total value of your portfolio will fluctuate considerably from time to time.

Aggressive Growth Your primary objective is to achieve the maximum potential growth over the long-term. You accept that the total value of your portfolio will fluctuate extremely from time to time.

Portfolio Breakdown

Portfolio Breakdown Growth 80% Scotiabank US Growth Fund Scotiabank Global Growth Fund Scotiabank Canadian Growth Fund

Growth 55% Scotiabank US Growth Fund Scotiabank Global Growth Fund Scotiabank Canadian Growth Fund

Cash Equivalent 5% Scotiabank Money Market Fund

Cash Equivalent 10% Scotiabank Money Market Fund

Income 15% Scotiabank US Dollar Bond Fund

Income 35% Scotiabank US Dollar Bond Fund

Portfolio Commentary Equity markets in the second quarter were more volatile than the first as European economic bailouts weighed heavily on global stock markets. The underlying equity funds of the Moderate Growth Portfolio were faced with these mounting economic concerns directly and indirectly throughout the quarter affecting performance negatively. This portfolio is well positioned as European governments work prudently towards managing their economic issues.

Portfolio Commentary Weak equity market performance fuelled globally from increasing economic pressures out of Europe has been the principal catalyst for the weak performance of the Aggressive Growth Portfolio in the second quarter. The concerns over Europe were felt most significantly in the underlying Global Growth Fund. Other underlying equity funds were also affected negatively out of fears of contagion. As continued economic measures take hold in Europe, global equity markets and this portfolio should stabilize.

Asset Management Service

Asset Management Service

Returns: 3 Mo 6 Mo

Returns: -2.24%

1 Mo

1 Mo

-6.37%

3 Mo -9.36%

-3.72%

6 Mo

1 Yr. 2 Yr.

8.67% -4.53%†

2Yr.

9.21% †

-8.38%

Year to date return: -6.27% Since inception (Jan. ‘08): -6.47%†

Growth of US$ 10,000: 12,000

12,000

10,000

10,000 $ 9,193.17

8,000

-6.27%

1 Yr.

Year to date return: -3.72% Since inception (Jan. ‘08): -3.39%†

6,000

-3.45%

21-01 31-03 30-06 30-09 31-12 31-03 30-06 30-09 31-12 31-03 30-06 2008 2008 2008 2008 2008 2009 2009 2009 2009 2010 2010

Growth of US$ 10,000:

8,000 6,000

$ 8,493.43 21-01 31-03 30-06 30-09 31-12 31-03 30-06 30-09 31-12 31-03 30-06 2008 2008 2008 2008 2008 2009 2009 2009 2009 2010 2010

Fund performance has been updated to reflect balances triggered through the Asset Managment Service (AMS). Performance figures are net of all fund expenses and annual AMS fee.

Fund performance has been updated to reflect balances triggered through the Asset Managment Service (AMS). Performance figures are net of all fund expenses and annual AMS fee.

† Average annual compound rate of return

† Average annual compound rate of return

16

17

18

19

-50%

-40%

-30%

-20%

-10%

0

10%

20%

30%

40%

50%

2000

2001

Global Growth Fund

US Dollar Bond Fund

Money Market Fund

2002

2003

US Growth Fund

2004

2005

2006

Canadian Growth Fund

FUND CALENDAR RETURNS

2007

2008

2009