Ms. Claire Dawson reports

SCOTIA GLOBAL ASSET MANAGEMENT ANNOUNCES ENHANCEMENTS TO SCOTIA ESSENTIALS PORTFOLIOS, FEE REDUCTIONS ON SELECT SERIES, AND OTHER FUND CHANGES

Bank of Nova Scotia's Scotia Global Asset Management has made enhancements to the Scotia Essentials Portfolios that will increase ETF (exchange-traded fund) exposure, broaden access to active and index-tracking ETF strategies, and lower management fees across select series. The changes are designed to provide investors with a more cost-effective ETF-focused solution combined with the benefits of professional portfolio management. Scotia Essentials Portfolios will be renamed Scotia Essentials ETF Portfolios to better reflect their investment approach. The manager also announced changes to certain other mutual funds.

"We are continuing to evolve Scotia Essentials ETF Portfolios to help investors access diversified portfolios that combine ETF exposure with professional portfolio management, including ongoing portfolio oversight, monitoring and rebalancing," said Neal Kerr, head of global asset management "These enhancements expand the role of ETFs within the portfolios, and help us deliver even greater value to clients."

Broader access to ETF strategies

Direct ETF exposure in each portfolio is expected to increase to a minimum of 51 per cent of net assets by March 31, 2027. The portfolios will combine active fixed income ETFs, active and index-tracking equity ETFs, and active mutual funds across asset classes, investment styles and geographies. The portfolios' investment objectives, target asset mixes and risk profiles will remain unchanged.

Portfolio name changes

Effective on or about Oct. 30, 2026, the Scotia Essentials Portfolios will be renamed Scotia Essentials ETF Portfolios to better reflect the role of ETFs within the portfolios. The portfolios will also be renamed as shown in the attached table.

Enhanced value through lower fees

The following management fee reductions will become effective on or about Nov. 1, 2026.

Scotia Partners Portfolios closed to new investors

Effective Oct. 30, 2026, the Scotia Partners Portfolios and Corporate Class Partners Portfolios will be closed to new investors.

Existing investors can continue to make subsequent purchases of the partners portfolios, including through preauthorized contribution plans, in an account that already holds securities of the portfolio.

Risk rating changes

Effective Sept. 25, 2026, the risk ratings for Scotia Wealth Credit Absolute Return Pool and Dynamic Credit Absolute Return Fund change from "low to medium" to "low."

These changes are in accordance with the standardized investment risk classification methodology mandated by the Canadian Securities Administrators (CSA). There is no change to the investment objectives or investment strategies of the funds associated with the new risk ratings.

A summary of the CSA's investment risk classification methodology, along with the investment objectives and strategies of the funds, is available in the applicable simplified prospectus.

Series A securities are available for purchase to all investors; however, Series A securities may not be purchased in order execution only accounts at dealers for which the dealer provides no advice (discount brokerage accounts). Series F securities may also be purchased in discount brokerage accounts. Differences in performance between these series are primarily due to differences in management fees and fixed administration fees. Performance results for Series F securities may also appear higher than for Series A securities as the management fee does not include the trailing commission.

About Scotia Global Asset Management

Scotia Global Asset Management is a business name used by 1832 Asset Management LP, a limited partnership, the general partner of which is wholly owned by Scotiabank. Scotia Global Asset Management offers a range of wealth management solutions, including mutual funds, ETFs, liquid alternative mutual funds, private asset funds, and customized investment solutions for private clients, institutions and managed asset programs.

About Bank of Nova Scotia

Scotiabank's vision is to be its clients' most trusted financial partner and deliver sustainable, profitable growth. Guided by its purpose: "for every future," the bank helps its clients, their families and their communities achieve success through a broad range of advice, products and services, including personal and commercial banking, wealth management and private banking, corporate and investment banking, and capital markets. With assets of approximately $1.5-trillion (as at July 31, 2026), Scotiabank is one of the largest banks in North America by assets, and trades on the Toronto Stock Exchange (TSX: BNS) and New York Stock Exchange (NYSE: BNS).