The Bank of Nova Scotia and CI Investments Inc. today announced the launch of The Bank of Nova Scotia – CI Performer Deposit Notes, offering principal protection, monthly income and the potential for capital growth.

“Income continues to be the main objective for many Canadian investors and The Bank of Nova Scotia – CI Performer Deposit Notes are designed to meet that need, with the added benefit of principal protection,” said David McBain, senior vp of CI Investments, in a news release.

The returns of the deposit notes are linked to the performance of Signature Income & Growth Fund, a leading income-oriented balanced fund from CI Investments. The deposit notes are being launched with an initial 125% exposure to the fund, and a dynamic allocation strategy allows for up to 200% exposure to the fund. The Deposit Notes also provide for the repayment of all of investors’ principal if held until maturity, regardless of the performance of the fund.

Signature Income & Growth Fund is managed by CI Investments’ Signature Advisors portfolio management team led by Chief Investment Officer Eric Bushell. The fund invests in a well-diversified mix of income-generating securities, including equities, high-yield bonds and other income securities, and is positioned to maximize the short-term benefits of each asset class. The fund pays monthly distributions for a targeted annual yield of approximately 6.25%.

The deposit notes are available in two series. The Yield notes are designed to add income and growth potential to registered portfolios, while the Return of Capital notes are appropriate for non-registered accounts with tax-efficient monthly payments.

Both series make monthly payments with a targeted yield of 5.76% annually based on 125% exposure to the fund, and a potential yield of 9.21% based on 200% exposure. The Yield notes make monthly payments that, in the opinion of tax counsel retained by Scotiabank, should be eligible to be treated as interest income, while the Return of Capital notes offer monthly partial principal repayments that, in the opinion of tax counsel retained by Scotiabank, should be eligible to be treated as tax-efficient return of capital.

The notes are 100% eligible for registered plans and are available through financial advisors until May 18, 2007. The issue price is $100 per deposit note, with a minimum investment of $5,000.