Richard CroftBNS Split Corp. IIBSC.TOPAST TOP PICKMay 18, 2006

Does not like product's use of leverage or alternative method's to generate yield. Suspicious of yield being higher than underlying assets. Would not recommend buying.

The Bank of Nova Scotia (BNS-T) cretaed a split corporation and bought units of Bank of Nova Scotia. There is a capital share which is the same ge is about as an "in the money" call option. The leverage is about 1.95 to 1 so that for every 5% BNS rises, this should go up about 9.5%.

A fund that basically just owns shares of the Bank of Nova Scotia. They split common shares in two with part of it being a preferred product. This is a way to play the growth prospects of this bank. It gives you good leverage on the stock.