Announcements

February 24, 2016
Re: Change in domicile to the Scotiabank Short-Term Income Fund Inc. (the "Fund")

Please be informed that we intend to transfer the home jurisdiction of the Fund, a member of the Scotiabank Mutual Funds family, from St Lucia to the Cayman Islands (the "Change of Home Jurisdiction"). We expect that the Change of Home Jurisdiction will be effective on or about April 18, 2016 subject to receipt of all required regulatory approvals (the "Effective Date").

As of the Effective Date, the Fund will be domiciled in the Cayman Islands where it will continue both its current registration as an administered mutual fund under the Mutual Funds Law (Cayman Islands) and the listing of its shares on the Cayman Islands Stock Exchange. At such time, the Fund will surrender its international public mutual fund license and international business company status in St. Lucia.

To further enhance operational efficiencies of the Scotiabank Mutual Funds, as of the Effective Date, Scotiabank & Trust (Cayman) Ltd., the current sub-manager of the Fund, will be appointed as the manager and the administrator of the Fund, replacing its affiliate Scotia Asset Management (St. Lucia) Inc. and ADCO Fund Administrator Inc. in their respective roles. The Change of Home Jurisdiction and the rationalization of the Fund's service provider structure will help align the products available from Scotiabank Mutual Funds and will not result in an increase of fees payable by the shareholders of the Fund.

1832 Asset Management L.P. will continue to provide portfolio management services to the Fund. No substantive changes are anticipated to the key personnel supporting the day-to-day activities of the Fund.

We view these changes as very positive for the Fund due to the enhanced operational efficiencies. However, if in light of these changes you wish to redeem your shares, you may do so in the manner prescribed in the Fund's prospectus from the date of this notice up until the Effective Date. Scotiabank Mutual Funds will waive any redemption fees, sales charges or short-term trading fees in connection with the redemptions of shares of the Fund during this period. No action is required if you are in agreement with these changes and wish to continue holding the shares of the Fund.

Should you have any questions please do not hesitate to contact your financial advisor. For information, please contact Scotiabank.mutualfunds@scotiabank.com.