Connor, Clark & Lunn Global Financials Fund II Declares Monthly Distribution

    TORONTO, Oct. 22 /CNW/ - Connor, Clark & Lunn Global Financials Fund II
announces a change to the monthly distribution rate as result of current
difficult market conditions.
    Based on their original issue price, Connor Clark & Lunn Global
Financials Fund ("GFF") and Connor Clark & Lunn Global Financials Fund II
("GFF II" or "the Fund") have paid an annual distribution of 5.0% and 6.0%
respectively since their inception dates of April 2006 and March 2007.
Additionally, GFF paid a special distribution of $0.11 in 2006. GFF was
subsequently merged into GFF II in April of this year. The distribution rate
for the continuing fund, GFF II, was left at 6.0% or $0.60 per annum. The
distribution level is set based upon the Manager and the Investment Manager's
views with respect to the performance of the Fund during the coming year, with
a goal to distribute any dividends and other income remaining after expenses
plus the net realized capital gains for the year. As a mutual fund trust, in
order to remain neutral for tax purposes it is necessary to pay out to
unitholders all the net realized gains during the taxation year. By setting
the distribution level at a rate higher than net dividends/interest received
the goal is that unitholders receive these gains over the course of the year,
rather than as a special distribution at year end.
    The equity markets have moved significantly lower in the last few months
and the financial services sector has had a particularly tough period as a
result of the continuing global credit crisis. Guy de Blonay, the portfolio
manager at New Star Asset Management, employs an active management style and
the Fund has realized significant capital losses year-to-date. While the
Investment Manager believes that the valuation levels for many companies are
currently very attractive it is not yet clear what the timing and extent of
any recovery will be. As such, the Fund will not likely have any net realized
capital gains during this year and the Manager believes that it is in the best
interests of the Fund to adjust the monthly distribution level of the Fund
from $0.05 to $0.0375 per Common Unit and Class A Unit (or from $0.60 to $0.45
per annum). The change will allow the Fund to retain assets and to take
advantage of any recovery in the financial equity markets and improve the net
asset value of the Fund. The record date for the first monthly distribution of
$0.0375 is October 31, 2008 and the payment date is November 17, 2008.
    During the first quarter of 2009 the Manager will again consult with the
Investment Manager to determine the appropriate level of distributions. The
Manager seeks to achieve a balance between paying out the income and realized
capital gains of the Fund in order to achieve tax neutrality versus
maintaining the net asset value of the Fund. We do not want the Fund to be in
the position where the distributions over an extended period are simply a
return of the unitholders' capital.
    Based on the closing market price as at October 21, 2008, the Fund had a
yield of approximately 10.3% at the new distribution level. Since inception
the Fund has had an annualized return of -20.3% versus -20.9% for its
benchmark, the FTSE Global Financials Index to the end of September. The New
Star Global Financials Fund, a UK-based fund which has the same portfolio
manager and investment approach as GFF II, had returned 10.6% per annum since
its launch in December 2001 versus -3.4% for its the benchmark, the FTSE
Global Financials Index and has outperformed its benchmark in each calendar
year with the exception of 2008 year-to-date.

For further information:

For further information: please visit or
contact: Darren Cabral, Vice-President, Connor, Clark & Lunn Capital Markets
Inc., (416) 214-6182, Toll Free: 1-888-276-2258,

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Connor, Clark & Lunn Capital Markets Inc.

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