Scotia Securities Inc. has announced several changes to the Scotia Mutual Funds. Some of the proposed changes are subject to unitholder approval and may be subject to regulatory approval.

“The proposed changes have been developed to improve our mutual fund products and services and will result in a more streamlined and diversified fund family for our investors” said Glen Gowland, managing director, wealth management, business development, Bank of Nova Scotia.

Fund mergers and changes to investment objectives

The following changes will be made subject to unitholder approval, and where required, regulatory approval:

Scotia Young Investors Fund will merge into Scotia Global Growth Fund.

Capital U.S. Small Companies Fund will merge into Capital Global Small Companies Fund. The continuing Capital Global Small Companies Fund will change its investment objectives as follows: The fund’s objective is to achieve long-term capital growth. It invests primarily in equity securities of smaller companies located around the world.

Capital U.S. Large Companies Fund will change its investment objectives as follows: The fund’s objective is to achieve long-term capital growth. It invests primarily in equity securities of U.S. companies.

Capital International Large Companies Fund will change its investment objectives as follows: The fund’s objective is to achieve long-term capital growth. It invests primarily in securities of companies located outside of the U.S.

Capital Global Discovery Fund will change its investment objectives as follows: The fund’s objective is to achieve long-term capital growth. It invests primarily in a more concentrated portfolio of equity securities of companies located around the world.

If approved, the proposed mergers and investment objectives changes will take effect after the close of business on or about April 20, 2007.

Fund name changes

The following fund name changes will be made concurrent with the fund mergers and investment objectives changes outlined above:

Capital Global Small Companies Fund will be renamed Scotia Global Small Cap Fund.

Capital U.S. Large Companies Fund will be renamed Scotia U.S. Value Fund.

Capital International Large Companies Fund will be renamed Scotia International Value Fund.

Capital Global Discovery Fund will be renamed Scotia Global Opportunities Fund.

The following name change will also take effect concurrent with the above changes:

Scotia Total Return Fund will be renamed Scotia Canadian Tactical Asset Allocation Fund.

Portfolio advisor changes

The following portfolio advisor changes will be made effective April 23, 2007:

GlobeFlex Capital, L.P. will become portfolio advisor to Capital Global Small Companies Fund (to be renamed Scotia Global Small Cap Fund), replacing Capital International Asset Management (Canada), Inc.

Metropolitan West Capital Management, LLC will become portfolio advisor to Capital U.S. Large Companies Fund (to be renamed Scotia U.S. Value Fund), replacing Capital International Asset Management (Canada), Inc.

Pzena Investment Management, LLC will become portfolio advisor to Capital International Large Companies Fund (to be renamed Scotia International Value Fund), replacing Capital International Asset Management (Canada), Inc.

Thornburg Investment Management, Inc. will become portfolio advisor to Capital Global Discovery Fund (to be renamed Scotia Global Opportunities Fund), replacing Capital International Asset Management (Canada), Inc.

The following portfolio advisor change will be made effective Feb. 19, 2007:

Baillie Gifford Overseas Limited will become portfolio advisor to the Scotia Global Growth Fund, replacing Capital International Asset Management (Canada), Inc.

Pursuant to each merger, unitholders of Scotia Young Investors Fund and Capital U.S. Small Companies Fund will exchange units of each of their respective funds for units of Scotia Global Growth Fund and Capital Global Small Companies Fund, respectively, on a class-by-class and dollar-for-dollar basis. Scotia Securities will be seeking the approval of unitholders of each of the terminating funds in connection with the mergers.

Unitholders will be asked to approve the mergers at special meetings to be held on or about April 5, 2007 in Toronto. If approved, each merger will take effect after the close of business on or about April 20, 2007. Scotia Securities also intends to wind up each of the terminating funds as soon as reasonably possible following the mergers.

SSI will be seeking the approval of unitholders of each of Capital U.S. Large Companies Fund, Capital International Large Companies Fund, Capital Global Discovery Fund and Capital Global Small Companies Fund with respect to the change of investment objectives at a special meeting to be held on or about April 5, 2007. Subject to such approval, the change of investment objectives for each of the Capital Funds will take effect after the close of business on or about April 20, 2007.