Mr. Neil Macdonald reports

SCOTIAFUNDS ANNOUNCES PORTFOLIO ADVISOR CHANGES

Bank of Nova Scotia's ScotiaFunds has a new portfolio adviser for the Scotia Global Balanced Fund, Scotia U.S. Dividend Fund and Scotia Global Dividend Fund.

1832 Asset Management L.P. is the manager of the funds and effective immediately, 1832 Asset Management will become portfolio adviser for Scotia Global Balanced Fund, Scotia U.S. Dividend Fund and Scotia Global Dividend Fund, replacing the current portfolio adviser. There will be no change to the investment objective of the funds as a result of the portfolio adviser change.

"1832 Asset Management is increasingly focused on growing its capacity, expertise, and portfolio management bench strength across a broad spectrum of asset classes and strategies," said Neil Macdonald, managing director, ScotiaFunds. "Over the past few years, the firm has made a significant investment in expanding its fixed income and global equity expertise. The portfolio adviser changes announced today reflect ScotiaFunds' commitment to leverage 1832 Asset Management's internal capabilities and expertise to deliver appropriate risk-adjusted returns for investors."