Scotiabank Mutual Funds GENERAL INFORMATION QUARTERLY FACTSHEET

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1 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, in any portfolio, with subsequent investments of US $1,. Initial minimum investment is US$1, in any one Fund where a Pre-Authorized Contribution (min. US $1 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 under Scotiabank. This report does not constitute an invitation to purchase or sell shares of the Funds. QUARTERLY FACTSHEET Information also available directly from: Scotiabank & Trust (Cayman) Ltd. 6 Cardinal Ave, Box 689 Grand Cayman, KY1 117 (345) Scotiabank Mutual Funds are Distributed by Scotiabank & Trust (Cayman) Ltd., a corporate entity separate from, although wholly owned by, The Bank of Nova Scotia. 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. Portfolio returns are hypothetical and historical, calculated based on the returns of the included funds. In calculating portfolio return, weights of each of the included funds are assumed to be as indicated in the portfolio breakdown. Commissions, trailing commissions, management fees and expenses may be associated with mutual fund investments. Important information about Scotiabank Mutual Funds is contained in the Funds prospectus. Copies are available from your local investment advisor, the Bank of Nova Scotia and affiliates' branches and should be read carefully before investing. Share values and investment returns for the Funds will fluctuate. Past performance is no guarantee of future performance and may not be repeated. Scotiabank Mutual Funds are not insured by, nor guaranteed by, The Bank of Nova Scotia. Standard and Poor s, S&P and S&P 5 are trademarks of The McGraw-Hill Companies and have been licensed for use by The Bank of Nova Scotia and its subsidiary companies. * Trademark of The Bank of Nova Scotia, used under licence. (7/9) Scotiabank Mutual Funds June 3, 29

2 Scotiabank Money Market Fund FUND DESCRIPTION This Fund is designed to provide safety of capital and liqudity. 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. Investment objective: The objective of this Fund is to earn interest income and provide liquidity, with a high level of safety. Inception date: November 19, FUND ADVISOR Scotia Cassels Investment Counsel Limited ( Scotia Cassels ) is a Toronto-based professional investment and portfolio management firm which actively manages private and corporate investment portfolios, pension funds and other segregated funds on a fully discretionary basis. Scotia Cassels is one of the largest investment managers in Canada, with more than US $24 billion of client funds under management. SALES CHARGES There is no sales charge applicable to this Fund. ASSET CLASS Cash and Cash Equivalents. FUND PERFORMANCE Net Asset Value: US $ (as of June 3, 29) The Fund's yield was.3% for the quarter compared to the benchmark's, 3-month US Treasury Bills, yield of.5%. Returns:.3%.12%.96% Since Inception (Nov. 99): 2.8% Net Asset Values and performance figures are net of all Fund expenses. Average annual compound rate of return. ˆ As of May 31, % 2.99% MARKET COMMENTARY During the quarter, economic growth continued to decline into negative territory. The return of the Scotiabank Money Market Fund was.3% for the second quarter of 29. The U.S. Conference Board index in June has taken almost a six point fall to 49.3, which is its first decline in four months. After its latest Federal Open Market Committee meeting in June, the Federal Reserve announced it will maintain its low interest rates for an extended period of time and has omitted any deflationary concerns. The three month commercial paper rates continued to improve significantly from.88% to.36%. As a result, credit spreads between government and corporal debt have tightened from.675% to.17%. The Fund has made purchases in the one to three month area, predominantly, due to a flatter money market yield curve. The Fund is more balanced in different sectors with an increased position in provincial and corporate Federal Reserve Notes and decreasing exposure to the large government guaranteed exposure. The portfolio manager continued to keep the average term to maturity of the fund at 6 days, which is neutral to its benchmark. PORTFOLIO BREAKDOWNˆ % Government Issues 32.7 Corporate Issues 65.5 Cash 1.8 Total 1. 1 LARGEST HOLDINGS: Fund % Export Development Canada Dec 23/ Her Majesty RGT CANA Jun 11/9 5.1 Toyota Motor Credit Jun 3/9 4.1 National Bank du Canada Aug 12/ Quebec Govt Jul 9/ Alberta Treasury Branches Jun 18/ Her Majesty RGT CANA Aug 2/ Province of Ontario Aug 17/9 3.4 Pfizer Inc Jun 4/9 3.3 General Elec Capt Co Jun 12/

3 Scotiabank US Dollar Bond Fund FUND DESCRIPTION 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. Investment objective: The objective of this Fund is to earn income and provide some potential for capital gains. Inception date: January 1, FUND ADVISOR Scotia Cassels Investment Counsel Limited ( Scotia Cassels ) is a Toronto-based professional investment and portfolio management firm which actively manages private and corporate investment portfolios, pension funds and other segregated funds on a fully discretionary basis. Scotia Cassels is one of the largest investment managers in Canada, with more than US $24 billion of client funds under management. SALES CHARGES A front-end load may apply. ASSET CLASS Income. FUND PERFORMANCE Net Asset Value: US $ (as of June 3, 29) The Fund returned -.1% for the quarter, compared to Merrill Lynch Corporate & Government Bond Index, which returned 2.1%. 1 yr. Returns: -1.3% -.1% Since Inception (Jan. 93): 5.13% Net Asset Values and performance figures are net of all Fund expenses. Average annual compound rate of return. ˆ As of May 31, % 6.3% 4.69% 5.46% MARKET COMMENTARY The Fund returned -.1% for the second quarter, underperforming its relative benchmark. The main driver of the underperformance was the structural difference in credit quality between the Fund and the Index as the Fund maintained a more conservative portfolio and exposure to higher quality credit. The U.S. economy remains in a vulnerable state with real GDP posting a 5.5% decline in the first quarter. Actions taken by the Federal Reserve and Treasury have in part mitigated some of the downside risk. However, many of the root causes of the U.S. recession remain largely intact, including declining housing prices, consumer deleveraging, a rise in the savings rates and curtailed consumer spending. The adoption of Quantitative Easing by the Federal Reserve remains a defining event of the first half of 29. While inflationary expectations have been sparked by this move, the actions offset a decline in the turnover of money in the economy as consumer demand contracted. It is hard to see inflation as a valid near-term concern given the near record level of excess capacity in the U.S. Given the level of economic uncertainty, the Fund will maintain a conservative approach to credit risk going into the second half of 29. PORTFOLIO BREAKDOWNˆ Fund % Index/ Benchmark% US Treasuries and Agencies Other Governments and Supranationals Corporates Total LARGEST HOLDINGS: Fund % New Brunswick Prov CDA Feb 15/ Federal Home LN BKS Nov 15/ Manitoba Prov CDA Global Deb Ser EM Feb 22/ Kreditanstalt fur Wiederaufbau NT Jul 16/ Saskatchewan Prov CDA Jul 15/ Federal Natl MTG ASSN Jul 12/ Intl BK for Recon + DEV Jan 19/ Nova Scotia Prov CDA DEB Jul 1/ Inter Amern Dev BK Global Tranche No TR 19 Mar 15/ US Treasury BDS Aug 15/

4 Scotiabank Global Growth Fund FUND DESCRIPTION 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. Investment objective: The objective of this Fund is long-term capital growth. Inception date: August 31, 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 $74 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. ASSET CLASS Growth. MARKET COMMENTARY The MSCI World Index rebounded by 19.73% in US dollars during the second quarter. The index extended its rally in April and May on better-than-expected earnings and solid macroeconomic data. The rally stalled in June on mixed economic news. During the second quarter, credit spreads narrowed sharply, but remained well above long-term averages. All sectors were in positive territory for the quarter. The cyclically sensitive sectors, including financials, construction & housing and industrial commodities, led the market while more defensive sectors, such as medical and telecommunications, lagged. The Fund gained and outperformed its benchmark during the second quarter. Security selection, particularly in the technology and industrial commodities sectors, added to relative gains. Sector selection was negative, as our overweight in telecommunications and underweight in capital equipment weighed on returns. Among individual contributors, media company CBS gained, following indications that advertising spending had stabilized. On the negative side agricultural commodities firm Archer Daniels Midland (ADM) retreated as investors favoured more cyclical stocks and ADM competitor Bunge reported weak earnings. A number of holdings in the energy sector, including Royal Dutch Shell and Chevron were also among significant individual detractors. Shares in these companies fell as crude oil prices stabilized in June. PORTFOLIO BREAKDOWNˆ LARGEST HOLDINGS: Royal Dutch Shell, Pfizer, Chevron Corp, AT&T Inc. Merck & Co Inc. Sweden 1.6% Finland 1.1% FUND PERFORMANCE Net Asset Value: US $ (as of June 3, 29) The Fund returned 23.59% for the quarter, compared to MSCI World Index, which returned 19.73%. 1 yr. Returns: -33.9% % Since Inception (Aug. 94): 3.1% Net Asset Values and performance figures are net of all Fund expenses. Average annual compound rate of return. ˆ As of May 31, % -.17% 1.64% 23.59% United States 43.37% Hong Kong 1.53% Germany 7.93% United Kingdom 13.39% Belgium.28% SECTORS: Fund % Index/ Benchmark % Financials Energy Health Care Consumer Discretionary Information Technology Consumer Staples Telecommunication Services Industrials Utilities Materials Total Australia 2.73% Canada 4.1% Spain.93% France 7.3% Switzerland 1.72% Italy 2.19% Japan 9.24% Norway.96% Netherlands 2.8%

5 Scotiabank US Growth Fund FUND DESCRIPTION This Fund invests in securities that comprise the Standard & Poor s 5 Index. These investments are weighted in such a manner that investment returns will closely match the S&P 5 Total Return Index. Investment objective: The objective of this Fund is long-term capital growth. Inception date: November 19, 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. SALES CHARGES A front-end load may apply. ASSET CLASS Growth. FUND PERFORMANCE Net Asset Value: US $5.711 (as of June 3, 29) The Fund returned 14.74% for the quarter compared to the S&P 5 Index, which returned 15.93%. Returns: -28.3% -1.57% Since Inception (Nov. 99): -5.66% Net Asset Values and performance figures are net of all Fund expenses. Average annual compound rate of return. ˆ As of May 31, % 3.53% 14.74% MARKET COMMENTARY The S&P 5 tagged its best levels of 29 in early June. The strong gains from April and May meant a refreshing double-digit return of 15.93% for the second quarter. The gain is the first positive quarter since the third quarter of 27 and its best threemonth performance since the final quarter of As for the first half of the year, the Index posted a positive return of 3.16% and by the end of the first half of the year the Index had rallied over 36% from its lowest point in mid-february. Utilities were the top performer in the latest month, and the Healthcare sector was also a solid gainer. Even as cyclical sectors pulled back, the Information Technology sector continued to perform nicely during June, with several larger names leading the way. For the whole of the second quarter, Technology was second only to the Financial sector, which surged more than 3%. The Consumer Discretionary and Materials sectors were also outperformers for the full second quarter. Low interest rates and banking system stability raised hopes that the US consumer could recover some of their legendary penchant for spending, while steel stocks helped to pace the rebound in the materials area. PORTFOLIO BREAKDOWNˆ Fund % 1 LARGEST HOLDINGS: Exxon Mobil Corp: A global integrated energy company 4.3 Microsoft Corp: A leading software applications developer 2. Johnson & Johnson: A leading provider of healthcare products and services 1.9 Procter & Gamble: A global provider of consumer products 1.9 AT&T: A leading communication services provider 1.8 General Electric Co: A global industrial firm 1.8 IBM: A world leader in information technologies and networking systems 1.8 JP Morgan Chase & Co: A financial holding company 1.7 Chevron Corp: A global integrated energy company 1.7 Apple Inc: A world leader in digital music, mobile communications and personal computers 1.5 SECTORS: % Information Technology 17.8 Health Care 13.8 Financials 13.4 Energy 13. Consumer Staples 12. Industrials 1.2 Consumer Discretionary 8.9 Utilities 3.9 Telecommunication Services 3.5 Materials 3.5 Total

6 Scotiabank Canadian Growth Fund FUND DESCRIPTION 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 31, FUND ADVISOR Scotia Cassels Investment Counsel Limited ( Scotia Cassels ) is a Toronto-based professional investment and portfolio management firm which actively manages private and corporate investment portfolios, pension funds and other segregated funds on a fully discretionary basis. Scotia Cassels is one of the largest investment managers in Canada, with more than US $24 billion of client funds under management. SALES CHARGES A front-end load may apply. ASSET CLASS Growth. FUND PERFORMANCE Net Asset Value: US $2.255 (as of June 3, 29) The Fund returned 27.74% for the quarter compared to the S&P TSX Index, which returned 3.5%. Returns: % 1 yr. Since Inception (Aug. 94): 5.62% Net Asset Values and performance figures are net of all Fund expenses. Average annual compound rate of return. ˆ As of May 31, % 7.71% 3.38% 27.74% 21.82% MARKET COMMENTARY The Canadian equity market turned in an excellent performance in the second quarter of 29 with a total return of 3.5 % for the quarter. Over the past three months, the best-performing sector was Information Technology (+43.3%) led by Research in Motion (+51.7%). Financials (+34.5%) staged a significant recovery in the quarter, led by Lifecos (+38.2%). Energy (+21.6%) also outperformed in the quarter but all other sectors of the S&P/TSX underperformed the general market. Telecom (-1%) and Materials (+4.3%) were the worst performing sectors in the second quarter as investors sold telecom stocks in favour of Financials and Energy. The slow recovery in the US from the unprecedented economic downturn is beginning to materialize, albeit at a mediocre pace. The unprecedented volatility in world markets experienced in the first quarter has stabilized somewhat, but continues to be a factor in the markets this year and is reflective of the seriousness of the financial problems experienced. Earnings expectations have been scaled back and this sets the stage for some positive surprises heading into the latter part of this year. A slow global growth recovery and the resulting demand for commodities will benefit Energy, Materials, Industrials and Technology stocks going forward. PORTFOLIO BREAKDOWNˆ Fund % 1 LARGEST HOLDINGS: Royal Bank: Canada s largest listed company 6. Encana: Canada s largest energy company by market capitalization 5.5 TD Bank: A core Canadian bank that has limited exposure to the sub-prime 5.2 Manulife Financial Corp: Canada's largest global insurer 4.5 Potash Corp: The world s leading producer of potash, with approx. 22% of world capacity 4.1 Canadian Natural Resources: A large-cap independent producer of oil and natural gas 4. Suncor: An oil and gas company with a dominant presence in the Alberta Oil Sands 4. Research in Motion: A world leader in mobile messaging solutions 3.7 Barrick Corp: The world s largest gold producer, with operations and projects in 1 countries 3.7 Rogers Communications: A diversified Canadian communications and media company 3.2 Fund % Index/ SECTORS: Benchmark % Energy Financials Materials Industrials Telecom Information Technology Consumer Staples Consumer Discretionary Utilities Health Care..4 Total

7 Scotiabank Preservation of Capital Portfolio Scotiabank Conservative Income Portfolio 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. Income 8% Cash Equivalent 2% The challenging rate environment has continued into the second quarter of 29. Yields on money market and shortterm debt instruments remain low and have muted performance of the Preservation ofcapital Portfolio over the last three months. As rates for these holdings begin to strengthen the Preservation of Capital Portfolio should stabilize. 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. Income 7% Growth 1% Scotiabank US Growth Fund Scotiabank Global Growth Fund Scotiabank Canadian Growth Fund Cash Equivalent 2% The Conservative Income Portfolio in the second quarter of 29 remains challenged by the low rate environment for money market and short-term debt instruments. The small equity component did provide some needed lift in the first two months of the quarter as equity markets began a strong recovery..% -1.7% 4.6% 5.76% 4.4% 1.11% -.29% 1.26% 4.65% 4.13% Year to Date: 5.5% Year to Date: 4.49% 1% 8% 6% 4% 2% % 6% 4% 2%

8 Scotiabank Income & Conservative Growth Portfolio Scotiabank Balanced Income & Growth Portfolio 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. Growth 3% Scotiabank US Growth Fund Scotiabank Global Growth Fund Scotiabank Canadian Growth Fund Cash Equivalent 15% Income 55% The Income & Conservative Growth Portfolio in the second quarter of 29 has been faced with a difficult low rate environment for conservative fixed income investments. Equity markets in the first two months of the quarter continued to recover which helped overall performance of this portfolio. 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. Growth 45% Scotiabank US Growth Fund Scotiabank Global Growth Fund Scotiabank Canadian Growth Fund Cash Equivalent 15% Income 4% Balanced investing performed well in the second quarter of 29. The low rate environment for cash and fixed income has been offset in this portfolio by the tremendous gains that equity markets begin to produce towards the end of first quarter 29 and into the second quarter. 8% 6% 4% 2% -2% -4% -6% -8% -5.49% Year to Date: 3.43% % 2.39% % 3.61% % 1% 5% -5% -1% -15% -2% 6.32% 3.25% -11.1%.36% 3.8% Year to Date: 2.45%

9 Scotiabank Moderate Growth Portfolio Scotiabank Aggressive Growth Portfolio 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. Growth 6% Scotiabank US Growth Fund Scotiabank Global Growth Fund Scotiabank Canadian Growth Fund Cash Equivalent 1% Income 3% The Moderate Growth Portfolio has benefited from the strong equity market performance in the months of April and May. While the month of June saw flat performance for equity markets, overall performance for the second quarter of the Scotiabank Moderate Growth Portfolio is strong % 5.26% 9.42% 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. Growth 8% Scotiabank US Growth Fund Scotiabank Global Growth Fund Scotiabank Canadian Growth Fund Cash Equivalent 5% Income 15% The global economic recovery in the equity markets that started late first quarter of 29 and have continued throughout April and May can be attributed to the strong performance of the Scotiabank Aggressive Growth Portfolio. The month of June did see a retreat in equity markets but overall performance for the quarter was extremely positive % 8.84% 15.5% -1.64% -4.7% 2.58% Year to Date: 1.55% Year to Date:.18% 1.74% % % % % % 5% -5% -5% % -15% % -25% -2% -25% %

10 25% 2% 15% 1% 5% -5% -1% -15% -2% -25% -3% -35% 5% 4% 3% 2% 1% -1% -2% -3% -4% -5% PORTFOLIO CALENDAR RETURNS Preservation of Capital Conservative Income Income & Conservative Growth Balanced Income & Growth Moderate Growth Aggressive Growth FUND CALENDAR RETURNS Money Market Fund US Growth Fund Canadian Growth Fund US Dollar Bond Fund Global Growth Fund