Scotia Diversified Monthly Income Fund

Distributions may consist of net income, and/or dividends, and/or net realized capital gains and are taxable in the hands of the investor. Monthly distributions are made by the last business day of each month, or the last business day of each calendar quarter for quarterly paying fund series, other than in December. The final distribution in respect of each taxation year will be paid or payable by December 31 of each year or at such other times as may be determined by the fund’s Manager. Generally, any capital gains dividends with respect to corporate class funds are distributed within 60 days following the calendar year end. Distributions are automatically reinvested unless an investor elects to receive them in cash. Investors should not confuse a fund’s distribution rate with its performance, rate of return or yield.

Target monthly distributions are determined based on the target payout rate for the indicated series of the fund. Target distributions are not guaranteed and may change at any time at the discretion of the fund’s Manager. If distributions paid by the fund are greater than the performance of the fund, distributions paid may include a return of capital and an investor’s original investment will shrink. A return of capital is not taxable to the investor, but will generally reduce the adjusted cost base of the securities held for tax purposes. If the adjusted cost base falls below zero, investors will realize capital gains equal to the amount below zero.