Portfolio Advisory Group
Contents Introduction ................................................................................................................................................. 3 Market Overview.................................................................................................................................... 3 Rating Changes ...................................................................................................................................... 9 New Issuance........................................................................................................................................ 10 Investing in Preferred Shares .................................................................................................................. 13 Advantages ........................................................................................................................................... 13 Risks ..................................................................................................................................................... 13 Incorporating Preferred Shares within a Portfolio................................................................................ 15 Diversification Principles ..................................................................................................................... 16 The Range of Preferred Shares ............................................................................................................. 17 Credit Ratings ...................................................................................................................................... 17 Retractable Preferred Shares .................................................................................................................. 19 Fixed Rate Perpetual Preferred Shares .................................................................................................. 21 Rate Reset Perpetual Preferred Shares .................................................................................................. 26 Fixed Floating Rate Preferred Shares..................................................................................................... 31 Floating Rate Preferred Shares ............................................................................................................... 33 Split Preferred Shares .............................................................................................................................. 35 Split Preferred Shares Retraction Features ........................................................................................... 39 Appendices ................................................................................................................................................ 42 Appendix I – Preferred Share Glossary ............................................................................................... 42 Appendix II – Proposed Tax Rate Tables for 2014 .............................................................................. 44 Appendix III – Index ........................................................................................................................... 46
To see if investing in preferred shares is right for your situation and financial goals, talk to your ScotiaMcLeod advisor or visit www.scotiamcleod.com to locate a local ScotiaMcLeod advisor near you.
2014
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