Richard Croft BNS Split Corp. II BSC-T PAST TOP PICK May 18, 2006

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.

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%.

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.