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SCOTIA ASSET MANAGEMENT LIMITED

SCOTIA PREMIUM MONEY MARKET FUNDSCOTIA PREMIUM FIXED INCOME FUND

andSCOTIA PREMIUM GROWTH FUND

Financial StatementsAs at the year ended

October 31, 2012

DB&G Fund Managers Limited | 3

TABLE OF CONTENTS

CORPORATE DATA 4

GENERAL MANAGER’S REPORT 5

ECONOMIC REVIEW 7

Gross Domestic Product (GDP) 7

Fiscal Accounts 7

Inflation 8

ForeignExchange 8

MONEY AND CAPITAL MARKETS REVIEW 9

Domestic Money Market 9

Stock Market 10

FUND PERFORMANCE 10

Scotia Premium Money Market Fund (SPMMF) 10

Scotia Premium Fixed Income Fund (SPFIF) 11

Scotia Premium Growth Fund (SPGF) 12

AUDITED Financial Statements 13

Scotia Premium Money Market Fund (SPMMF) 13

Scotia Premium Fixed Income Fund (SPFIF) 37

Scotia Premium Growth Fund (SPGF) 65

4 | Scotia Asset Management Limited

CORPORATE DATA

MANAGERScotia Asset Management (Jamaica) Limited7 Holborn Road,Kingston 10Tel:876-960-6700/960-6699Email:[email protected]: www.scotiainvestmentsjm.com

General Manager: Mr. Brian O. Frazer

Board of Directors:BarbaraAlexander - ChairpersonJacquelineSharp - DirectorLissantMitchell - DirectorAudreyRichards - DirectorKatherineBilyk - DirectorAngelaFowler - Director

TRUSTEEJCSD Trustee Services Limited40 Harbour StreetKingston

AUDITORSKPMG Peat MarwickChartered Accountants6 Duke StreetKingston

BANKERSThe Bank of Nova Scotia Jamaica Limited86SlipeRoadKingston 5

ATTORNEYS-AT-LAWHart Muirhead Fatta 53 Knutsford BoulevardKingston 5

SUB-ADMINISTRATOR, REGISTRAR & TRANSFER AGENTStateStreetCaymanTrustCompany,Ltd.45 Market StreetSuite 3206AGardenia Court, Camana BayGrand Cayman, Cayman Islands

Scotia Asset Management Limited | 54 | Scotia Asset Management Limited

GENERAL MANAGER’S REPORT

Dear Unit Holder,

During the year, Scotia Asset Management (Jamaica) Limited (SAMJ) successfullycompletedtheconversionofallofitsUnitTrustproductstoasingleinternationalplatform.Thisplatformwillultimatelyimprovethecompany’soperationalefficienciesandofferincreasedbenefitstoinvestorsintheUnitTrustFunds.Theyear-endalsomarkstheoneyearanniversary since the launch of the Scotia Premium Money Market Fund which through consistent and strategic advertising combined withgoodfundperformancehasincreasedby$1.36Billionto$1.42Billion.

With the regulatory changes introduced in the last two years and impending changes to the Collective Investment Schemes (CIS)regulation,theUnitTrustindustryexperiencedanumberofstrategictransformationsduringtheyear,whichincludedproductdevelopmentas well as merger and acquisition activities. This resulted in the total number of Unit Trust Funds in the industry increasing from thirteen (13)toeighteen(18),therebyfosteringthegrowthofthemarketbyapproximately36%.

General Manager's Report Dear Unit Holder, During the year, Scotia Asset Management (Jamaica) Limited (SAMJ) successfully completed the conversion of all of its Unit Trust products to a single international platform. This platform will ultimately improve the company’s operational efficiencies and offer increased benefits to investors in the Unit Trust Funds. The year-end also marks the one year anniversary since the launch of the Scotia Premium Money Market Fund which through consistent and strategic advertising combined with good fund performance has increased by $1.36 Billion to $1.42 Billion.

With the regulatory changes introduced in the last two years and impending changes to the Collective Investment Schemes (CIS) regulation, the Unit Trust industry experienced a number of strategic transformations during the year, which included product development as well as merger and acquisition activities. This resulted in the total number of Unit Trust Funds in the industry increasing from thirteen (13) to eighteen (18), thereby fostering the growth of the market by approximately 36%.

As at October 31, 2012, the Unit Trust Industry stood at J$42.98 Billion with SAMJ controlling 50% with AUM of $21.6 billion compared to $20 billion as at the end of October 2011. Accordingly, during the fiscal year, SAMJ contributed $315 million to the revenues of Scotia Investments Jamaica Limited compared to $289 million the previous year.

During the year, we reviewed the trust deeds of the SPFIF and the SPGF and brought them in line with the unit trust guidelines issued by the FSC in February 2010 and international best practice. The Fund Manager successfully completed the transfer of its fund operations to a new international mutual fund platform that provides improved efficiency, reduces operational risk and will now allow us to provide more investment options to you our valued unit holders.

The Fund Manager will continue to be guided by its core investment principles based on asset allocation and diversification, in order to meet the long term objectives of your funds.

In closing, I would like to thank the Board of Directors for their guidance and the entire team at Scotia Asset Management (Jamaica) for their hard work over the past year and I look forward to their support as we continue to grow your funds and deliver credible investment performance.

Sincerely,

SCOTIA ASSET MANAGMENT (JAMAICA) LIMITED

Brian Frazer

GENERAL MANAGER

SAMJ 50.2%

Manager C 6.7%

Manager A 35.5%

Manager 4 7.3%

Unit Trust Industry Market Share Oct 2012

As at October 31, 2012, the Unit Trust Industry stood at J$42.98BillionwithSAMJcontrolling50%withAUMof$21.6billioncomparedto$20billionasattheendofOctober2011.Accordingly,duringthefiscalyear,SAMJcontributed$315milliontotherevenuesofScotiaInvestmentsJamaicaLimitedcomparedto$289millionthepreviousyear.

During the year, we reviewed the trust deeds of the SPFIF and the SPGF and brought them in line with the unit trust guidelines issued by theFSCinFebruary2010andinternationalbestpractice.TheFundManager successfully completed the transfer of its fundoperationstoanewinternationalmutualfundplatformthatprovidesimprovedefficiency,reducesoperationalriskandwillnowallowustoprovidemoreinvestmentoptionstoyouourvaluedunitholders.

The Fund Manager will continue to be guided by its core investment principles based on asset allocation and diversification, in order tomeet the long term objectives of your funds.

In closing, I would like to thank the Board of Directors for their guidance and the entire team at Scotia Asset Management (Jamaica) for their hard work over the past year and I look forward to their supportas we continue to grow your funds and deliver credible investment performance.

Sincerely,SCOTIA ASSET MANAGMENT (JAMAICA) LIMITED

Brian FrazerGENERAL MANAGER



ECONOMIC REVIEW

Gross Domestic Product (GDP) The local economy failed to maintain the economic momentum which ensuedovercalendaryear2011whenrealGDPadvanced1.3%torecordthefirstyearofpositivegrowthsincetherecessionof2008.Attheturnofcalendaryear2012,realGDPgrowthamountedto-0.1%,-0.2%and -0.9 for the first, secondand third quarters respectively.This resulted fromweakperformances in theGoodsProducingandServicesindustrieswhichbothposteddeclines.

Fiscal Accounts Centralgovernment’sfiscalpositionreflectedmarkeddeteriorationforFY2011/12.TheprimarybalancetoGDPdeclinedto3.1%fromthe4.5%forthepreviousyear.Thisensuedfromaweakshowingontherevenuefrontwithtaxrevenuegrowingat3.6%,itslowestrateintwodecades.ThefiscalbalancetoGDPsawnoimprovement,remainingat-6.2%butfellshortofthebudgeted-3.8%.

Economic Review

Gross Domestic Product (GDP) The local economy failed to maintain the economic momentum which ensued over calendar year 2011 when real GDP advanced 1.3% to record the first year of positive growth since the recession of 2008. At the turn of calendar year 2012, real GDP amounted to -0.1%, -0.2% and -0.9 for the first, second and third quarters respectively. This resulted from weak performances in the Goods Producing and Services industries which both posted declines.

Fiscal Accounts Central government’s fiscal position reflected marked deterioration for FY 2011/12. The primary balance to GDP declined to 3.1% from the 4.5% for the previous year. This ensued from a weak showing on the revenue front with tax revenue growing at 3.6%, its lowest rate in two decades. The fiscal balance to GDP saw no improvement, remaining at -6.2% but fell short of the budgeted -3.8%.

Inflation For the 12 months under review, inflation surfaced at 7.19% compared to 7.74% in the prior year. For the first 10 months, monthly inflation was stable at an average of 0.41% but spiked at the end of the period, due to the higher cost of utilities. Throughout most of the year inflation impact was driven by food and utility costs.

-0.5

0.0

0.5

1.0

1.5

2.0

2.5

-2.0

0.0

2.0

4.0

6.0

8.0

Jun-11 Sep-11 Dec-11 Mar-12 Jun-12

Rate

(%)

Rat

e(%

)

Real GDP YOY Growth

Productive Sector (LHS) Service Sector (LHS) All Sectors (RHS)

Source: STATIN, PIOJ, SIJL

24.8 10.8

128

31.1

3.1

-6.2

25.9 10.6

130.5

29.7

6.0

-3.8 -20

0

20

40

60

80

100

120

140

Total Revenues Wages Debt/GDP TotalExpenditure

Primary Balance Fiscal Balance

% o

f GDP

FY 2011/12 Actual (% of GDP) versus FY 2011/12 Targets (% of GDP)

FY 2011/12 FY 2012/13 targetsSource: MOF, SIJL

2011/12

Economic Review

Gross Domestic Product (GDP) The local economy failed to maintain the economic momentum which ensued over calendar year 2011 when real GDP advanced 1.3% to record the first year of positive growth since the recession of 2008. At the turn of calendar year 2012, real GDP amounted to -0.1%, -0.2% and -0.9 for the first, second and third quarters respectively. This resulted from weak performances in the Goods Producing and Services industries which both posted declines.

Fiscal Accounts Central government’s fiscal position reflected marked deterioration for FY 2011/12. The primary balance to GDP declined to 3.1% from the 4.5% for the previous year. This ensued from a weak showing on the revenue front with tax revenue growing at 3.6%, its lowest rate in two decades. The fiscal balance to GDP saw no improvement, remaining at -6.2% but fell short of the budgeted -3.8%.

Inflation For the 12 months under review, inflation surfaced at 7.19% compared to 7.74% in the prior year. For the first 10 months, monthly inflation was stable at an average of 0.41% but spiked at the end of the period, due to the higher cost of utilities. Throughout most of the year inflation impact was driven by food and utility costs.

-0.5

0.0

0.5

1.0

1.5

2.0

2.5

-2.0

0.0

2.0

4.0

6.0

8.0

Jun-11 Sep-11 Dec-11 Mar-12 Jun-12Ra

te (%

)

Rat

e(%

)

Real GDP YOY Growth

Productive Sector (LHS) Service Sector (LHS) All Sectors (RHS)

Source: STATIN, PIOJ, SIJL

24.8 10.8

128

31.1

3.1

-6.2

25.9 10.6

130.5

29.7

6.0

-3.8 -20

0

20

40

60

80

100

120

140

Total Revenues Wages Debt/GDP TotalExpenditure

Primary Balance Fiscal Balance

% o

f GDP

FY 2011/12 Actual (% of GDP) versus FY 2011/12 Targets (% of GDP)

FY 2011/12 FY 2012/13 targetsSource: MOF, SIJL

2011/12 Source: MOF SIJL


Inflation Forthe12monthsunderreview,inflationsurfacedat7.19%comparedto7.74%intheprioryear.Forthefirst10months,monthlyinflationwasstableatanaverageof0.41%butspikedattheendoftheperiod,duetothehighercostofutilities.Throughoutmostoftheyearinflationimpactwasdrivenbyfoodandutilitycosts.

Foreign ExchangeFortheperiodNovember1,2011toOctober31,2012,theJamaicandollarlost5.32%ofitsvaluetoitsUSdollarcounterpart.TheJamaicandollarclosedtheperiodatanaveragesellingrateofJ$91.09/US$1.The Bank of Jamaica (BOJ) intervened in the foreign exchange market on numerous occasions due to strong demands for the US dollar resultinginthenetinternationalreserve(NIR)decliningbyUS$899.39milliontoreachUS$1.08billionasattheendofOctober2012.Thisrepresented13.25weeksofgoodsandservicesimports,nearingtheinternational benchmark of 12 weeks.

Foreign Exchange For the period November 1, 2011 to October 31, 2012, the Jamaican dollar lost 5.32% of its value to its US dollar counterpart. The Jamaican dollar closed the period at an average selling rate of J$91.09/US$1. The Bank of Jamaica (BOJ) intervened in the foreign exchange market on numerous occasions due to strong demands for the US dollar resulting in the net international reserve (NIR) declining by US$ 899.39 million to reach US$1.08 billion as at the end of October 2012. This represented 13.25 weeks of goods and services imports, nearing the international benchmark of 12 weeks.

For the period, the local currency depreciated by 6.03% against the British Pound. Similarly, the Jamaican dollar lost 6.12% to the Canadian dollar as the exchange rate moved from J$86.48:CAD$1 at November 1, 2011 to J$91.77:CAD$1 at the end of the period.

Money and Capital Markets Review

Domestic Money Market The BOJ maintained its benchmark interest rate (30-day Certificate of deposit) at 6.25% throughout the year due to significant upside inflation risks induced by higher energy prices in addition to

-0.6%

-0.1%

0.4%

0.9%

1.4%

1.9%

2.4%

-2.5%

0.0%

2.5%

5.0%

7.5%

10.0%

Oct-11 Dec-11 Feb-12 Apr-12 Jun-12 Aug-12 Oct-12

Mon

thly

Infa

ltion

Poin

t-to

-Poi

nt

Inflation

Mthly Headline PTP HeadlineSource: STATIN, SIJL

85.00

86.50

88.00

89.50

91.00

92.50


J$/U

S$1

JMD/USD 12 Month Movements

Source: SIJL, BOJ

Foreign Exchange For the period November 1, 2011 to October 31, 2012, the Jamaican dollar lost 5.32% of its value to its US dollar counterpart. The Jamaican dollar closed the period at an average selling rate of J$91.09/US$1. The Bank of Jamaica (BOJ) intervened in the foreign exchange market on numerous occasions due to strong demands for the US dollar resulting in the net international reserve (NIR) declining by US$ 899.39 million to reach US$1.08 billion as at the end of October 2012. This represented 13.25 weeks of goods and services imports, nearing the international benchmark of 12 weeks.

For the period, the local currency depreciated by 6.03% against the British Pound. Similarly, the Jamaican dollar lost 6.12% to the Canadian dollar as the exchange rate moved from J$86.48:CAD$1 at November 1, 2011 to J$91.77:CAD$1 at the end of the period.

Money and Capital Markets Review

Domestic Money Market The BOJ maintained its benchmark interest rate (30-day Certificate of deposit) at 6.25% throughout the year due to significant upside inflation risks induced by higher energy prices in addition to

-0.6%

-0.1%

0.4%

0.9%

1.4%

1.9%

2.4%

-2.5%

0.0%

2.5%

5.0%

7.5%

10.0%

Oct-11 Dec-11 Feb-12 Apr-12 Jun-12 Aug-12 Oct-12M

onth

ly In

falti

on

Poin

t-to

-Poi

nt

Inflation

Mthly Headline PTP HeadlineSource: STATIN, SIJL

85.00

86.50

88.00

89.50

91.00

92.50


J$/U

S$1

JMD/USD 12 Month Movements

Source: SIJL, BOJ


For the period, the local currency depreciated by 6.03% againstthe British Pound. Similarly, the Jamaican dollar lost 6.12% to theCanadiandollarastheexchangeratemovedfromJ$86.48:CAD$1atNovember1,2011toJ$91.77:CAD$1attheendoftheperiod.

Money And Capital Markets Review

Domestic Money Market TheBOJmaintaineditsbenchmarkinterestrate(30-dayCertificateof deposit) at 6.25% throughout the year due to significant upsideinflationrisksinducedbyhigherenergypricesinadditiontoincreasedpressure on the local currency emanating partly from uncertaintysurrounding a new IMF agreement.

However,market-determinedinterestratesinchedhigherfortheoneyear period. The average yield on the 90-day Treasury bill (T-bill)tenorincreasedfrom6.22%atstartofNovember2011to6.38%asatOctober2012.Similarly,the180-dayinchedhigherby42basispointstofinishtheperiodat6.69%.

Stock MarketForthefinancialyear,theJamaicaStockExchange(JSE)MainIndexregistereda5.72%decline.Movementinthemainindexcameamidstavery challenging economic environment. Notwithstanding historically low interest rates, the JSE Main Market underwent significantdownwardpressureduemainlytoinvestorreticencecreatedbytheinabilityofthegovernmenttofinalizeanagreementwiththeIMF.

increased pressure on the local currency emanating partly from uncertainty surrounding a new IMF agreement.

However, market-determined interest rates inched higher for the one year period. The average yield on the 90-day Treasury bill (T-bill) tenor increased from 6.22% at start of November 2011 to 6.38% as at October 2012. Similarly, the 180-day inched higher by 42 basis points to finish the period at 6.69%.

Stock Market For the financial year, the Jamaica Stock Exchange (JSE) Main Index registered a 5.72% decline. Movement in the main index came amidst a very challenging economic environment. Notwithstanding historically low interest rates, the JSE Main Market underwent significant downward pressure due mainly to investor reticence created by the inability of the government to finalize an agreement with the IMF.

The JSE Junior Market also fell, reversing the stellar performance it posted in the prior year to decline by 8.7% to end at 668.51 points. There was one new entrant to the Junior Market during the year.

5.0%

6.0%

7.0%

Nov-11 Jan-12 Mar-12 May-12 Jul-12 Sep-12

Yiel

d (%

)

90-day T-Bill 180-day T-Bill 30-day OMO

Source: SIJL, BOJ

0

20

40

60

80

100

75,000

80,000

85,000

90,000

95,000

100,000

Volu

me

(Mill

ions

)

JSE

Mai

n In

dex

JSE Main Market Activity

Volume Traded Main Index


TheJSEJuniorMarketalso fell, reversing thestellarperformance itpostedintheprioryeartodeclineby8.7%toendat668.51points.There was one new entrant to the Junior Market during the year.

Fund Performance

Scotia Premium Money Market Fund (SPMMF)The Scotia Premium Money Market Fund, was launched in October 2011andafteroneyearofsubscriptiontothepublic,theNetAssetValue(NAV)stoodat$1.4BillionasatOctober31,2012.SPMMFisthefirstMoneyMarketUnitTrustFundofitstypeofferedinJamaicawithattractivefeaturesthatincludenolock-upperiod,noencashmentfee,quarterlycashflowandsafetyofcapital.TheFund’sNAVpershareremainsatitsoriginalissuepriceof$100.Accordingly,thereturntoinvestorsisthroughtheFund’sdividendyieldwhichwas5.24%forthe12 month ended October 2012.

TheSPMMFaddstothesuiteofUnitTrustproductsofferedbyScotiaInvestments Jamaica and was created to provide investors with aCashFundthatpreservescapitalwhileofferinganattractivequarterlydividendpayment.

increased pressure on the local currency emanating partly from uncertainty surrounding a new IMF agreement.

However, market-determined interest rates inched higher for the one year period. The average yield on the 90-day Treasury bill (T-bill) tenor increased from 6.22% at start of November 2011 to 6.38% as at October 2012. Similarly, the 180-day inched higher by 42 basis points to finish the period at 6.69%.

Stock Market For the financial year, the Jamaica Stock Exchange (JSE) Main Index registered a 5.72% decline. Movement in the main index came amidst a very challenging economic environment. Notwithstanding historically low interest rates, the JSE Main Market underwent significant downward pressure due mainly to investor reticence created by the inability of the government to finalize an agreement with the IMF.

The JSE Junior Market also fell, reversing the stellar performance it posted in the prior year to decline by 8.7% to end at 668.51 points. There was one new entrant to the Junior Market during the year.

5.0%

6.0%

7.0%

Nov-11 Jan-12 Mar-12 May-12 Jul-12 Sep-12

Yiel

d (%

)

90-day T-Bill 180-day T-Bill 30-day OMO

Source: SIJL, BOJ

0

20

40

60

80

100

75,000

80,000

85,000

90,000

95,000

100,000

Volu

me

(Mill

ions

)

JSE

Mai

n In

dex

JSE Main Market Activity

Volume Traded Main Index

FUND PERFORMANCE

Scotia Premium Money Market Fund (SPMMF)

The Scotia Premium Money Market Fund, was launched in October 2011 and after one year of subscription to the public, the Net Asset Value (NAV) stood at $1.4 Billion as at October 31, 2012. SPMMF is the first Money Market Unit Trust Fund of its type offered in Jamaica with attractive features that include no lock-up period, no encashment fee, quarterly cash flow and safety of capital. The Fund’s NAV per share remains at its original issue price of $100. Accordingly, the return to investors is through the Fund’s dividend yield which was 5.24% for the 12 month ended October 2012.

The SPMMF adds to the suite of Unit Trust products offered by Scotia Investments Jamaica and was created to provide investors with a Cash Fund that preserves capital while offering an attractive quarterly dividend payment.

Scotia Premium Fixed Income Fund (SPFIF) The Scotia Premium Fixed Income Fund had a Net Asset Value of $18.3 Billion as at October 31, 2012, maintaining its dominance as the largest Unit Trust Fund in Jamaica. Moreover, the Fund accounted for 60% of the $33 Billion Fixed Income Unit Trust market.

During the year, the Fixed Income market proved challenging to generate returns that exceeded inflation as market rates registered a significant increase, as much as 200 basis points, resulting in the erosion of some of the increase in market value of the assets in the Fund. While the upward pressure on market rates was expected and the Fund Managers employed strategies to temper its effects, the return on the Fund was still impacted. Accordingly, the Fund’s 12 month return and calendar year-to-date returns were 5.11% and 4.20%, respectively, whilst inflation for the corresponding periods were 6.65% and 5.27%, respectively.

024681012141618

300

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800

900

Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12

Volu

me

(Mill

ions

)

Inde

x

JSE Junior Market Activity

Volume Traded Value New Listing


Scotia Premium Fixed Income Fund (SPFIF)The Scotia Premium Fixed Income Fund had a Net Asset Value of $18.3BillionasatOctober31,2012,maintaining itsdominanceasthe largest Unit Trust Fund in Jamaica. Moreover, the Fund accounted for60%ofthe$33BillionFixedIncomeUnitTrustmarket.

During the year, the Fixed Income market proved challenging togenerate returns thatexceeded inflationasmarket rates registeredasignificant increase,asmuchas200basispoints, resulting in theerosion of some of the increase in market value of the assets in the Fund. While the upward pressure on market rates was expectedand the FundManagers employed strategies to temper its effects,the return on the Fund was still impacted. Accordingly, the Fund’s12monthreturnandcalendaryear-to-datereturnswere5.11%and4.20%, respectively, whilst inflation for the corresponding periodswere6.65%and5.27%,respectively.

Scotia Premium Growth Fund (SPGF)

The Scotia Premium Growth Fund stood at $1.8 Billion as at October 31, 2012, representing 37% of the $5 Billion Equity-based Unit Trust market. During the period, investor confidence deteriorated amidst concerns about the state of the local economy. This led to a lack lustre performance of the local stock market and resulted in declines in all Equity-based Unit Trust Funds. While this allowed the Fund Managers to take advantage of significant under-valuations in certain stocks, the PGF registered a 12 month return of negative 8.19% and a calendar year-to-date return of negative 9.16%. These returns compare favourably to the returns of the JSE Select Index of negative 16.56% and negative 16.08%, respectively.

SAMJ 60%

Rest of Market 40%

Fixed Income Market Share October 31, 2012

1.21%

2.70%

5.11%

9.87%

11.76%

13.57%

2.07%

3.53%

6.65%

8.64%

11.49%

11.46%

3 Mths

6 Mths

1 Yr

3 Yr

5 Yr

10 Yr

Compound Growth Rate of Return-As at October 31, 2012

CPI PFIF

Scotia Premium Growth Fund (SPGF)

The Scotia Premium Growth Fund stood at $1.8 Billion as at October 31, 2012, representing 37% of the $5 Billion Equity-based Unit Trust market. During the period, investor confidence deteriorated amidst concerns about the state of the local economy. This led to a lack lustre performance of the local stock market and resulted in declines in all Equity-based Unit Trust Funds. While this allowed the Fund Managers to take advantage of significant under-valuations in certain stocks, the PGF registered a 12 month return of negative 8.19% and a calendar year-to-date return of negative 9.16%. These returns compare favourably to the returns of the JSE Select Index of negative 16.56% and negative 16.08%, respectively.

SAMJ 60%

Rest of Market 40%

Fixed Income Market Share October 31, 2012

1.21%

2.70%

5.11%

9.87%

11.76%

13.57%

2.07%

3.53%

6.65%

8.64%

11.49%

11.46%

3 Mths

6 Mths

1 Yr

3 Yr

5 Yr

10 Yr


CPI PFIF

Scotia Premium Growth Fund (SPGF)TheScotiaPremiumGrowthFundstoodat$1.8BillionasatOctober31,2012,representing37%ofthe$5BillionEquity-basedUnitTrustmarket.

Duringtheperiod,investorconfidencedeterioratedamidstconcernsabout the state of the local economy. This led to a lack lustre performanceofthelocalstockmarketandresultedindeclinesinallEquity-basedUnitTrustFunds.WhilethisallowedtheFundManagerstotakeadvantageofsignificantunder-valuationsincertainstocks,thePGFregistereda12monthreturnofnegative8.19%andacalendaryear-to-date return of negative 9.16%. These returns comparefavourablytothereturnsoftheJSESelectIndexofnegative16.56%andnegative16.08%,respectively

Disclaimers:ImportantinformationabouttheunittrustfundsarecontainedintherespectiveFund’sOfferingCircular.PleasereadtheFund’sOffering Circular before investing. Offering Circulars are available from your local Investment Advisor, the Bank of Nova Scotia andaffiliates’branches.Alwaysconsultyourprofessionaltaxandlegaladvisorswithrespecttoyourparticularcircumstances.Nothing herein is intended to constitute an offer or solicitation to transact business for either products or services in anyjurisdictionwheresuchanofferorsolicitationwouldbeunlawful.UnitvaluesandinvestmentreturnsfortheFundswillfluctuate.Pastperformanceisnoguaranteeoffutureperformanceandmaynotberepeated.UnittrustfundsarenotcoveredbyyourlocalDepositInsuranceCorporationorothergovernmentdepositinsurer.Unittrustfundsarenotinsuredby,norguaranteedby,TheBankofNovaScotiaoritsaffiliates.


Disclaimers: Important information about the unit trust funds are contained in the respective Fund’s Offering Circular. Please read the Fund’s Offering Circular before investing. Offering Circulars are available from your local Investment Advisor, the Bank of Nova Scotia and affiliates’ branches. Always consult your professional tax and legal advisors with respect to your particular circumstances. Nothing herein is intended to constitute an offer or solicitation to transact business for either products or services in any jurisdiction where such an offer or solicitation would be unlawful. Unit values and investment returns for the Funds will fluctuate. Past performance is no guarantee of future performance and may not be repeated. Unit trust funds are not covered by your local Deposit Insurance Corporation or other government deposit insurer. Unit trust funds are not insured by, nor guaranteed by, The Bank of Nova Scotia or its affiliates.

SAMJ 37%

Rest of Market 63%

Equity Market Share October 31, 2012

0.01%

-6.11%

-8.19%

13.10%

7.83%

14.47%

-0.12%

-11.66%

-16.56%

10.29%

-1.27%

6.40%

3 Mths

6 Mths

1 Yr

3 Yr

5 Yr

10 Yr

JSE Select Index PGF


Disclaimers: Important information about the unit trust funds are contained in the respective Fund’s Offering Circular. Please read the Fund’s Offering Circular before investing. Offering Circulars are available from your local Investment Advisor, the Bank of Nova Scotia and affiliates’ branches. Always consult your professional tax and legal advisors with respect to your particular circumstances. Nothing herein is intended to constitute an offer or solicitation to transact business for either products or services in any jurisdiction where such an offer or solicitation would be unlawful. Unit values and investment returns for the Funds will fluctuate. Past performance is no guarantee of future performance and may not be repeated. Unit trust funds are not covered by your local Deposit Insurance Corporation or other government deposit insurer. Unit trust funds are not insured by, nor guaranteed by, The Bank of Nova Scotia or its affiliates.

SAMJ 37%

Rest of Market 63%

Equity Market Share October 31, 2012

0.01%

-6.11%

-8.19%

13.10%

7.83%

14.47%

-0.12%

-11.66%

-16.56%

10.29%

-1.27%

6.40%

3 Mths

6 Mths

1 Yr

3 Yr

5 Yr

10 Yr

JSE Select Index PGF



Scotia Premium Money Market Fund Financial Statements

October 31, 2012


Scotia Premium Money Market Fund



Thefinancialstatementsonpages16-36wereapproveforissuebytheBoardofScotiaAsset Management ( Jamaica) Limited on Feburary 26, 2013 and signed on behalf by.


Scotia Premium Fixed Income Fund Financial Statements

October 31, 2012

38 | Scotia Asset Management Limited Scotia Asset Management Limited | 39


Scotia Premium Fixed Income Fund


Scotia Premium Growth Fund Financial Statements

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