CI Financial reports strong net sales and record assets for May



    TSX Symbol: CIX.UN

    TORONTO, June 1 /CNW/ - CI Financial Income Fund ("CI") today reported
assets under management of $70.2 billion and fee-earning assets of
$99.5 billion at May 31, 2007. During the month, CI had gross sales of
$1.1 billion and net sales of $293 million.
    CI's assets under management increased $1.2 billion or 1.7% over the
month and fee-earning assets were up $1.2 billion or 1.3%. These asset levels
represent a new month-end record for the company.
    Assets under management consisted of investment fund assets at CI
Investments Inc. and United Financial Corporation of $65.7 billion and other
assets under management of $4.5 billion, representing CI's structured products
and assets at KBSH Capital Management Inc. and Lakeview Asset Management Inc.
CI's administered/other assets of $29.4 billion included $17.6 billion in
assets under administration at Assante Wealth Management (Canada) Ltd. (net of
assets under management at United Financial), assets under administration at
Blackmont Capital Inc. of $10.0 billion, as well as institutional assets at
Trilogy Global Advisors, LLC that generate fees for CI.
    During May, CI Investments had gross sales of $961 million and net sales
of $293 million, comprised of $231 million in net sales of long-term funds and
$62 million of money market funds. United Financial had gross sales of
$139 million and redemptions of $139 million. For the year-to-date, CI had
gross sales of $5.5 billion and net sales of $1.3 billion.
    Morningstar Canada announced in May that CI Investments continued to lead
the industry with 40 mutual and segregated funds holding the top five-star
rating at April 30, 2007.
    Additional information about CI's sales, assets and financial position
can be found below in the tables of preliminary statistics and on its website
in the Statistics section.

    
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                           CI FINANCIAL INCOME FUND
                                 May 31, 2007
                             MONTH-END STATISTICS
    -------------------------------------------------------------------------
    MONTHLY SALES DATA              GROSS SALES    REDEMPTIONS     NET SALES
                                     (millions)     (millions)     (millions)
    -------------------------------------------------------------------------
    CI funds excluding MMF              $847           $616           $231
    CI money market                      114             52             62
    -------------------------------------------------------------------------
    TOTAL CI Investments                $961           $668           $293
    -------------------------------------------------------------------------
    TOTAL United Financial              $139           $139             $0
    -------------------------------------------------------------------------
    TOTAL CI                          $1,100           $807           $293
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    FEE-EARNING ASSETS             April 30/07     May 31/07            %
                                    (millions)     (millions)        Change
    -------------------------------------------------------------------------
    CI mutual/segregated funds       $54,258        $55,533            2.3%
    United Financial funds            10,115         10,135            0.2%
    -------------------------------------------------------------------------
                                     $64,373        $65,668            2.0%
    -------------------------------------------------------------------------
    Structured products/other funds    4,586          4,493           -2.0%
    -------------------------------------------------------------------------
    TOTAL assets under management    $68,959        $70,161            1.7%
    -------------------------------------------------------------------------
    CI administered/other assets       1,902          1,833           -3.6%
    -------------------------------------------------------------------------
    Assante assets under
     administration (net of
     United funds)                    17,574         17,574            0.0%
    -------------------------------------------------------------------------
    Blackmont assets under
     administration                    9,862          9,970            1.1%
    -------------------------------------------------------------------------
    TOTAL FEE-EARNING ASSETS         $98,297        $99,538            1.3%
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    AVERAGE ASSETS UNDER           April 30/07     May 31/07             %
    MANAGEMENT                      (millions)     (millions)         Change
    -------------------------------------------------------------------------
    Monthly                          $68,953        $70,153            1.7%
    Quarter-to-date                  $68,953        $69,563            0.9%
    Fiscal year-to-date              $65,018        $66,072            1.6%
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
                                   Fiscal 2006
    FISCAL AVERAGE ASSETS UNDER       (Dec.)      Fiscal 2007            %
    MANAGEMENT                      (millions)     (millions)         Change
    -------------------------------------------------------------------------
    Fiscal year average assets       $58,735        $66,072           12.5%
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    EQUITY                               FINANCIAL POSITION
                                        (millions unless otherwise indicated)
    -------------------------------------------------------------------------
    LP units                 147,035,090  Bank debt                     $880
    Trust units              135,537,358  Cash & marketable securities   (41)
    Total outstanding units  282,572,448 ------------------------------------
    Quarter-to-date weighted              Net debt outstanding          $839
     average units                       ------------------------------------
     outstanding             282,240,286  Net debt to annualized EBITDA
    Yield at $29.49                 7.3%   (most recent quarter)      1.15:1
    In-the-money options       3,490,387 ------------------------------------
    Percentage of all options        92%  In-the-money equity comp.
    All options % of units          1.3%   liability (net of tax)        $29
                                          Terminal redemption value
                                           of funds                     $780
                                          Quarter-to-date equity-based
                                           compensation(*)                $9
    -------------------------------------------------------------------------

    (*) Based on marked-to-market pre-tax equity-based compensation expense
        accrual from change in unit price and vesting from last quarter-end
        ($27.60) to May 31, 2007 ($29.49).


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    GEOGRAPHIC EXPOSURE OF AUM
    -------------------------------------------------------------------------
    Canada                        47%      Asia                           4%
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    United States                 22%      Other                          2%
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    Europe                        15%      Cash                          10%
    -------------------------------------------------------------------------
    

    CI Financial Income Fund (TSX: CIX.UN) is an independent, Canadian-owned
wealth management company. CI offers a broad range of investment products and
services, including an industry-leading selection of investment funds. CI is
on the Web at www.ci.com/cix.

    EBITDA (earnings before interest, taxes, depreciation and amortization)
is a non-GAAP (generally accepted accounting principles) earnings measure that
does not have any standardized meaning prescribed by GAAP. It is therefore
unlikely to be comparable to similar measures presented by other companies.
However, management believes that most shareholders, creditors, other
stakeholders and investment analysts prefer to include the use of this
performance measure in analyzing CI's results.

    This press release contains forward-looking statements with respect to CI
and its products and services, including its business operations and strategy
and financial performance and condition. Although management believes that the
expectations reflected in such forward-looking statements are reasonable, such
statements involve risks and uncertainties. Actual results may differ
materially from those expressed or implied by such forward-looking statements.
Factors that could cause actual results to differ materially from expectations
include, among other things, general economic and market factors, including
interest rates, business competition, changes in government regulations or in
tax laws, and other factors discussed in materials filed with applicable
securities regulatory authorities from time to time.





For further information:

For further information: Douglas Jamieson, Senior Vice-President and
Chief Financial Officer, (416) 364-1145


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