Connor, Clark & Lunn Capital Markets Inc. announces the proposed merger of Connor, Clark & Lunn Global Financials fund and Connor, Clark & Lunn Global Financials Fund II



    TORONTO, Dec. 11 /CNW/ - Connor, Clark & Lunn Global Financials Fund and
Connor, Clark & Lunn Global Financials Fund II (collectively, the "Funds")
announced that the Board of Directors of Connor, Clark & Lunn Capital Markets
Inc. ("CC&L Capital Markets"), the manager of Funds, has approved a proposal
that would result in the merger of Connor, Clark & Lunn Global Financials Fund
("GF1") and Connor, Clark & Lunn Global Financials Fund II ("GF2") (the
"Merger Proposal") and has approved a proposal which would permit GF2 to issue
warrants to purchase GF2 units to unitholders of GF2.
    As both Funds have similar underlying portfolios and as New Star Asset
Management Limited acts as their investment manager, merging GF1 and GF2 will
provide unitholders of both Funds with the opportunity to continue their
investment in a single fund that will have a larger market capitalization,
increased liquidity for the units of the Funds and reduced costs on a per unit
basis. If the Merger Proposal is approved and implemented, GF2 will be the
continuing fund and unitholders of GF1 will become holders of common units of
GF2 as a result of the merger.
    Whether or not the Merger Proposal is approved, if the proposal to permit
warrants to be issued is approved, GF2 proposes to issue to its unitholders
warrants to subscribe for additional units of GF2. If the Merger Proposal is
approved and implemented, holders of GF1 units who receive common units of GF2
on the merger and continue to hold them would likewise be issued warrants to
subscribe for additional common units of GF2. The warrants would be issued by
way of a prospectus that would need to be prepared, filed and cleared with the
Canadian securities regulatory authorities.
    Special meetings of unitholders of GF1 and GF2 have been called and will
be held on January 17, 2007 to vote on the proposals. Details of the proposals
will be set out in a joint management information circular to be prepared and
delivered to unitholders of GF1 and GF2. In order for the Merger Proposal to
become effective, it must be approved by a two-thirds majority of the
unitholders of each of the Funds present in person or represented by proxy at
each of the special meetings and in order for the proposal to permit warrants
to be issued to become effective, it must be approved by a two-thirds majority
of the unitholders of GF2 present in person or represented by proxy at GF2's
special meeting. Both of the proposals are also subject to the receipt of all
necessary regulatory and stock exchange approvals.




For further information:

For further information: Tim Bradshaw, (416) 364-3658,
tbradshaw@cclgroup.com

Organization Profile

CONNOR, CLARK & LUNN GLOBAL FINANCIALS FUND

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CONNOR, CLARK & LUNN GLOBAL FINANCIALS FUND II

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