WIXLIB

Specific information about each of the mutual funds describedin this documentThe ScotiaFunds offer up to seven classes of units: Class Aunits, Class F units, Manager Class units (formerly namedScotia Private Client units), Advisor Class units, Premium Classunits, Class T units and Class I units. Only Class A, Class F,Class I and Premium Class units are offered for sale under thissimplified prospectus.The classes have different management fees and are intendedfor different investors. Class A units are available to allinvestors. Class T units are intended for investors seekingstable monthly distributions. Class F units are generally available only to investors who have fee-based accounts withauthorized brokers or dealers, including ScotiaMcLeod, a division of Scotia Capital Inc. Manager Class units are for investorswho have signed a discretionary investment management agreement with Scotia Asset Management L.P. or Scotiatrust. AdvisorClass units are available to all investors through authorizeddealers and brokers, including ScotiaMcLeod. Premium Classunits are only available to investors who make the requiredminimum investment, as determined by us from time to time.Class I units are available only to eligible institutional investorsand other qualified investors. You’ll find more informationabout the different classes of units on page 117.About the fund descriptionsOn the following pages, you’ll find detailed descriptions of eachof the funds to help you make your investment decisions.Here’s what each section of the fund descriptions tells you:Fund detailsThis section gives you some basic information about each fund,such as its start date and its eligibility for registered plans,including Registered Retirement Savings Plans (RRSPs), Registered Retirement Income Funds (RRIFs), Registered EducationSavings Plans (RESPs) and Tax-Free Savings Accounts(TFSAs).All of the funds are, or are expected to be, qualified investments under the Income Tax Act (Canada) (“Tax Act”) forregistered plans. In certain cases, we may restrict purchases ofunits of certain funds by certain registered plans.What does the fund invest in?This section tells you the fund’s fundamental investment objectives and the strategies it uses in trying to achieve thoseobjectives. Any change to the fundamental investmentobjectives must be approved by a majority of votes cast at ameeting of unitholders called for that purpose.About derivativesDerivatives are investments that derive their value from theprice of another investment or from anticipated movements ininterest rates, currency exchange rates or market indexes.Derivatives are usually contracts with another party to buy orsell an asset at a later time and at a set price. Examples ofderivatives are options, forward contracts and swaps. Options generally give holders the right, but not the obligation, to buy or sell an asset, such as a security or currency,at a set price and a set time. Option holders normally paythe other party a cash payment, called a premium, foragreeing to give them the option. Forward contracts are agreements to buy or sell an asset,such as a security or currency, at a set price and a set time.The parties have to complete the deal, or sometimes makeor receive a cash payment, even if the price has changed bythe time the deal closes. Swaps are agreements between two or more parties toexchange principal amounts or payments based on returnson different investments.A fund can use derivatives as long as it uses them in a waythat’s consistent with the fund’s investment objectives and withCanadian securities regulations. All of the funds may usederivatives to hedge their investments against losses fromchanges in currency exchange rates, interest rates and stockmarket prices. Some of the funds may also use derivatives togain exposure to financial markets or to invest indirectly insecurities or other assets. This can be less expensive thanbuying securities or assets directly.When a fund uses derivatives for purposes other than hedging,it holds enough cash or money market instruments to fullycover its positions, as required by securities regulations.Investing in other mutual fundsThe Scotia Selected Portfolios, Scotia Partners Portfolios andScotia Vision Portfolios provide investors with professionallymanaged solutions designed to suit their investment profile.Unlike most mutual funds, which invest in individual securities,each of the Scotia Selected Portfolios, Scotia Partners Portfolios and Scotia Vision Portfolios invests in a mix of othermutual funds. The mutual funds included in the Scotia1

Partners Portfolios are offered by some of the most prominentmutual fund families in Canada, including the ScotiaFunds.The mutual funds from the ScotiaFunds family make up a largeportion of the investments of the Scotia Selected Portfolios andthe Scotia Vision Portfolios.The Scotia Selected Portfolios, Scotia Partners Portfolios andScotia Vision Portfolios give you: strategic asset allocation geographic diversificationconservative as its target date approaches. The Scotia VisionPortfolios are ideally suited to investors who have a definedfinancial goal and a defined time horizon in which to realizetheir goal.Some of the other funds may invest some or all of their assetsin other mutual funds from time to time. When deciding toinvest in other mutual funds, the portfolio advisor may considera variety of criteria, including management style, investmentperformance and consistency, risk attributes and the quality ofthe fund’s manager or portfolio advisor. portfolio advisor style diversification ongoing oversight of the asset mix and fund selection ongoing portfolio rebalancing to ensure that the appropriatelong-term asset mix is maintained.The selection of underlying funds for the Scotia SelectedPortfolios, Scotia Partners Portfolios and Scotia Vision Portfolios is subject to a multi-step investment process.Prior to recommending a fund for inclusion in or removal fromthe Scotia Partners Portfolios, we conduct a thorough review ofappropriate third-party mutual funds and the ScotiaFunds.When recommending a mutual fund, we consider the asset mixof each of the Scotia Partners Portfolios which are designedfor different types of investors with unique risk/reward profiles.Each Scotia Partners Portfolio is diversified by asset class,capitalization, geography and investment style. We monitor thefunds regularly and recommendations are based on the funds’quantitative and qualitative attributes, and the diversificationbenefits that they bring to each of the Scotia PartnersPortfolios.The creation of the Scotia Selected Portfolios began with athorough review of the ScotiaFunds lineup. Using a similarmethodology as the Scotia Partners Portfolios, the funds thatare included in or removed from the Scotia Selected Portfoliosundergo rigorous quantitative and qualitative analysis thatincludes an in-depth understanding of the portfolio advisorsresponsible for the funds. Each Scotia Selected Portfolio ismanaged against an asset mix, and is diversified by asset class,market capitalization, geography and investment style. TheScotia Selected Portfolios may also include a combination ofactive and passive investment strategies. We monitor the ScotiaSelected Portfolios regularly.Similar to the Scotia Selected Portfolios, the creation of theScotia Vision Portfolios began with an analysis of the availablefunds and their portfolio advisors. The asset allocation for eachfund was professionally designed to be diversified on multiplelevels to emphasize a balanced total return while minimizingrisk. In addition, each Scotia Vision Portfolio is monitored onan ongoing basis to ensure appropriate diversification. Its assetallocation strategy is professionally adjusted to become more2Funds that engage in repurchase and reverse repurchasetransactionsSome of the funds may enter into repurchase or reverserepurchase agreements to generate additional income fromsecurities held in a fund’s portfolio. When a mutual fundagrees to sell a security at one price and buy it back on aspecified later date (usually at a lower price), it is enteringinto a repurchase transaction. When a mutual fund agrees tobuy a security at one price and sell it back on a specified laterdate (usually at a higher price), it is entering into a reverserepurchase transaction. For a description of the strategies thefunds use to minimize the risks associated with these transactions, see the discussion under Repurchase and reverse repurchase transaction risk on page 113.Funds that lend their securitiesSome of the funds may enter into securities lending transactions to generate additional income from securities held in afund’s portfolio. A mutual fund may lend securities held in itsportfolio to qualified borrowers who provide adequate collateral. For a description of the strategies the funds use tominimize the risks associated with these transactions, see thediscussion under Securities lending risk on page 113.What are the risks of investing in the fund?This section tells you the risks of investing in the fund. You’llfind a description of each risk in Specific risks of mutual fundson page 111.Who should invest in this fund?This section can help you decide if the fund might be suitablefor your portfolio. It’s meant as a general guide only. For adviceabout your portfolio, you should consult your mutual fundrepresentative. If you don’t have a mutual fund representative,you can speak with one of our representatives at anyScotiabank branch or by calling a ScotiaMcLeod office.

Distribution policyThis tells you when the fund usually distributes any net incomeand capital gains to unitholders. The funds may also makedistributions at other times.Distributions on units held in registered plans and non-registered accounts are reinvested in additional units of the fund,unless you tell your mutual fund representative that you wantto receive cash distributions. For information about how distributions are taxed, see Income tax considerations for investorson page 127.Fund expenses indirectly borne by investorsThis is an example of how much the fund might pay inexpenses. It is intended to help you compare the cost ofinvesting in the fund with the cost of investing in other mutualfunds. Each fund pays its own expenses, but they affect youbecause they reduce the fund’s returns.The table shows how much the fund would pay in expenses ona 1,000 investment with a 5% annual return. The informationin the tables assumes that the fund’s management expenseratio (MER) was the same throughout each period shown as itwas during its last completed financial year. If a fund does notoffer Class F, Class I or Premium Class units or did notdistribute Class A, Class F or Class I units prior to December 31, 2008, no fund expenses information is available for thatclass. You’ll find more information about fees and expenses inFees and expenses starting on page 122.3

Scotia T-Bill FundScotia Premium T-Bill FundScotia Money Market FundScotia U.S. Money Market FundThe cash equivalent funds aim to provide safety plus interestincome. They have the lowest risk of the ScotiaFunds because theyinvest in very high quality short-term investments, such as treasurybills and other money market instruments. These funds are managed to attempt to maintain a constant unit value. Interest incomewill vary with short-term interest rates.Cash equivalent funds can add stability and liquidity to yourportfolio. They’re also a good choice if you need quick access toyour money or are looking for an alternative to other short-terminvestments or a savings account.Cash Equivalent FundsCash Equivalent Funds5

FUNDT- B I L LSCOTIAScotia T-Bill FundFund detailsThe fund may have these additional risks:Fund typeCanadian money market fund derivatives riskStart dateOctober 3, 1991 repurchase and reverse repurchase transaction riskType of securitiesClass A units of a mutual fund trust securities lending risk.Eligible forregistered plans?YesPortfolio advisorScotia Asset Management L.P.What does the fund invest in?You’ll find details about each of these risks starting onpage 110.The fund aims to maintain a constant unit value of 10.00,but there’s a risk the price could change.Investment objectivesWho should invest in this fund?The fund’s objective is to provide income and liquidity,while maintaining a high level of safety. It invests primarily in Government of Canada treasury bills and othershort-term debt instruments guaranteed by the Government of Canada. you’re looking for low risk and safety of principal you’re investing for the short term.Investment strategiesThe fund allocates net income daily and distributes it bythe last business day of each month.The portfolio advisor uses interest rate and yield curveanalysis to select individual investments and to managethe fund’s average term to maturity. It may also usederivatives such as options, futures and swaps to adjustthe fund’s average term to maturity. It will only usederivatives as permitted by securities regulations.C A S H E Q U I VA L E N T F U N D S you want interest income and liquidity with a high levelof safetyAny change to the fundamental investment objectives mustbe approved by a majority of votes cast at a meeting ofunitholders called for that purpose.The fund invests in securities with a maturity of up to oneyear. The average term to maturity of the fund’s investments can vary between 30 and 90 days.The fund aims to maintain a constant unit value of 10.00by crediting income and capital gains daily and distributing them monthly.The fund may participate in repurchase, reverse repurchase and securities lending transactions to achieve thefund’s overall investment objectives and to enhance thefund’s returns. You’ll find more information about repurchase, reverse repurchase and securities lending transactions and how the fund limits the risks associated withthem on page 113.What are the risks of investing in the fund?The main risk of investing in this fund is interest raterisk.6This fund may be suitable for you if:Distribution policyDistributions on units held in registered plans and nonregistered accounts are reinvested in additional units ofthe fund, unless you tell your mutual fund representativethat you want to receive cash distributions.Fund expenses indirectly borne by investorsThis example shows the fund’s expenses on a 1,000investment with a 5% annual return.Fees and expensespayable over1 year 11.383 years35.875 years 10 years62.87143.11

Fund typeCanadian money market fundStart dateJuly 10, 1992Type of securitiesClass A units of a mutual fund trustEligible forregistered plans?YesPortfolio advisorScotia Asset Management L.P.What does the fund invest in?FUNDWhat are the risks of investing in the fund?T- B I L Lrepurchase, reverse repurchase and securities lendingtransactions and how the fund limits the risks associatedwith them on page 113.SCOTIAFund detailsP RSECMOI TU IMAScotia Premium T-Bill FundThe main risk of investing in this fund is interest raterisk.The fund may have these additional risks: derivatives riskInvestment objectives repurchase and reverse repurchase transaction riskThe fund pays a rebate, called a management fee distribution, of 0.20% when the value of the fund within anaccount is 250,000 to 1 million and 0.35% when thevalue of the fund within an account is more than 1 million. If you are eligible for a management fee distribution,you can expect to realize more income from the fund thanyou would otherwise realize.Any change to the fundamental investment objectives mustbe approved by a majority of votes cast at a meeting ofunitholders called for that purpose. securities lending risk.You’ll find details about each of these risks starting onpage 110.The fund aims to maintain a constant unit value of 10.00,but there’s a risk the price could change.Who should invest in this fund?This fund may be suitable for you if: you have at least 100,000 to invest in the fund you want interest income with a high level of safety andliquidity you’re looking for low risk and safety of principal you’re investing for the short term.Investment strategiesDistribution policyThe fund invests in securities with a maturity of up to oneyear. The average term to maturity of the fund’s investments can vary between 30 and 90 days.The fund allocates net income daily and distributes it bythe last business day of each month.The portfolio advisor uses interest rate and yield curveanalysis to select individual investments and to managethe fund’s average term to maturity. It may also usederivatives such as options, futures and swaps to adjustthe fund’s average term to maturity. It will only usederivatives as permitted by securities regulations.The fund aims to maintain a constant unit value of 10.00by crediting income and capital gains daily and distributing them monthly.The fund may participate in repurchase, reverse repurchase and securities lending transactions to achieve thefund’s overall investment objectives and to enhance thefund’s returns. You’ll find more information aboutDistributions on units held in registered plans and nonregistered accounts are reinvested in additional units ofthe fund, unless you tell your mutual fund representativethat you want to receive cash distributions.Fund expenses indirectly borne by investorsThis example shows the fund’s expenses on a 1,000investment with a 5% annual return.Fees and expensespayable over1 year 3 years 5.5417.455 years10 years30.5869.62C A S H E Q U I VA L E N T F U N D SThe fund’s objective is to provide income and liquidity,while maintaining a high level of safety. It invests primarily in Government of Canada treasury bills and othershort-term debt instruments guaranteed by the Government of Canada.7

S C OS Tc IoAt i aM OP rNeEmYi u Mm A RT -KBEi Tl l FFUuNn DdScotia Money Market FundFund detailsFund typeCanadian money market fundStart dateClass A units: August 30, 1990Class I units: June 20, 2005Premium Class units: November 24, 2008Type of securitiesClass A, Class I and Premium Class unitsof a mutual fund trustEligible forregistered plans?YesPortfolio advisorScotia Asset Management L.P.The fund may participate in repurchase, reverse repurchase and securities lending transactions to achieve thefund’s overall investment objectives and to enhance thefund’s returns. You’ll find more information about repurchase, reverse repurchase and securities lending transactions and how the fund limits the risks associated withthem on page 113.What are the risks of investing in the fund?The main risks of investing in this fund are:What does the fund invest in? interest rate riskInvestment objectives credit risk.The fund’s objective is to provide income and liquidity,while maintaining a high level of safety. It invests primarily in high quality, short-term fixed income securitiesissued by Canadian federal, provincial and municipalgovernments, Canadian chartered banks and trust companies, and corporations.The fund may have these additional risks:Any change to the fundamental investment objectives mustbe approved by a majority of votes cast at a meeting ofunitholders called for that purpose.Investment strategiesC A S H E Q U I VA L E N T F U N D SThe fund generally invests in securities with a maturity ofup to one year. The fund invests in securities with a creditrating of R1 (low) or better by Dominion Bond RatingService Limited (DBRS), or an equivalent rating byanother approved rating agency. The average term tomaturity of the fund’s investments can vary between 30and 90 days.8 derivatives risk class risk repurchase and reverse repurchase transaction risk underlying fund risk securities lending risk significant unitholder risk.You’ll find details about each risk starting on page 110.The fund aims to maintain a constant unit value of 10.00,but there’s a risk the price could change.Who should invest in this fund?This fund may be suitable for you if: you want interest income and liquidity with a high levelof safety you’re looking for low risk and safety of principalThe portfolio advisor uses interest rate, yield curve andcredit analysis to select individual investments and tomanage the fund’s average term to maturity. The portfolioadvisor may use derivatives such as options, futures andswaps to adjust the fund’s average term to maturity, toadjust credit risk, to gain or reduce exposure to incomeproducing securities, and to hedge against changes ininterest rates and foreign currency exchange r

Specific information about each of the mutual funds described in this document The ScotiaFunds offer up to seven classes of units: Class A units, Class F units, Manager Class units (formerly named