Scotiabank purchases Sun Life Financial's ownership stake in CI Financial

    TORONTO, Oct. 6 /CNW/ - Scotiabank (TSX/NYSE:   BNS) today announced a
strategic investment that will result in the purchase of Sun Life Financial's
("Sun Life" TSX/NYSE:  SLF) ownership stake in CI Financial Income Fund ("CI";
    Scotiabank has agreed to purchase 104,609,895 trust units of CI from Sun
Life for approximately $2.3 billion in cash representing all of Sun Life's 37
per cent ownership stake in CI. Following the completion of this transaction
Scotiabank will have ownership of, or control over, 104,783,954 units,
representing 37.6 per cent of the outstanding units of CI. The completion of
this acquisition of CI units by Scotiabank is subject to the satisfaction or
waiver of customary closing conditions, including the receipt of all
applicable regulatory approvals.
    "This announcement is a significant step forward and demonstrates
Scotiabank's ongoing commitment to growing our wealth management business,"
said Rick Waugh, Scotiabank President and CEO. "We have seen solid growth in
our wealth management products and services. Through this agreement we gain a
significant stake in one of Canada's wealth management market leaders with a
long track record of superior performance."
    CI is Canada's number three mutual fund company by assets under
management. CI's excellence in fund management has been recognized with 19
Canadian Investment Awards over the past seven years, including Advisor's
Choice Favourite Investment Fund Company in 2005 and Analysts' Choice
Investment Fund Company of the Year in 2006 and 2007. In September, CI
reported that it led the market with $152 million in net sales.
    "This announcement is good news for both Scotiabank and CI Financial and
is a strong statement of confidence in our firm," said William T. Holland,
CEO, CI Financial. "CI Financial has enjoyed a long relationship with
Scotiabank and this investment reflects Scotiabank's confidence in both our
business today and our long-term potential."
    Scotia Securities Inc. (SSI), a wholly-owned subsidiary of Scotiabank,
has been a consistently strong performer among mutual fund companies. For the
past 30 months, SSI has had positive net long-term sales and last month led
bank-owned companies in net sales, according to preliminary data from the
Investment Funds Institute of Canada. Today's announcement, combined with
Scotiabank's investment in DundeeWealth, further cements the Bank's strong
position in the mutual fund industry.
    Sun Life Financial took an initial 30% stake in CI Financial in July,
    "CI is a strong, highly successful competitor with one of the strongest
management teams in the Canadian mutual funds industry," said Donald A.
Stewart, Chief Executive Officer of Sun Life Financial.
    The transaction is expected to close in approximately 45 days, following
the required notifications and regulatory approvals. Scotiabank has acquired
ownership of the CI units as a strategic investment to continue Scotiabank's
focus in the wealth management industry. Scotiabank may in the future acquire
or dispose of additional securities of CI depending upon factors such as the
business and prospects of CI and future market conditions. Scotiabank has
relied upon the aggregation relief provided in Sections 5.1 and 5.2 of
National Instrument 62-103 in disclosing the number of units of CI owned or
controlled by its business units. The number of units of CI disclosed above as
being owned or controlled by Scotiabank includes 27,170 units of CI
beneficially owned by Scotiabank and 146,889 units of CI over which control or
direction is exercised by Scotia Cassels Investment Counsel Limited. Any units
of CI owned or controlled by other business units or investment funds
affiliated with Scotiabank have not been disclosed.
    Scotia Capital is acting as exclusive financial advisor to Scotiabank.

    Analyst Conference Call
    An analyst conference call will take place on Monday, October 6, 2008 at
    8:30 a.m. EDT.
    Interested parties are invited to access the call live, in listen-only
    Via telephone, toll-free, 1-800-731-6941 (please call
    five to 15 minutes in advance).

    Conference Call Archive
    A telephone replay of the call will be available until Monday, October
    13, 2008 by calling 416-640-1917 (identification code 21285606 followed
    by the number sign).

    About CI Financial

    CI Financial Income Fund (TSX: CIX.UN) is an independent, Canadian-owned
wealth management company with approximately $99 billion in fee-earning assets
as of July 31, 2008. CI offers a broad range of investment products and
services, including an industry-leading selection of investment funds, and is
on the Web at

    About Sun Life

    Sun Life Financial is a leading international financial services
organization providing a diverse range of protection and wealth accumulation
products and services to individuals and corporate customers. Chartered in
1865, Sun Life Financial and its partners today have operations in key markets
worldwide, including Canada, the United States, the United Kingdom, Ireland,
Hong Kong, the Philippines, Japan, Indonesia, India, China and Bermuda. As of
June 30, 2008, the Sun Life Financial group of companies had total assets
under management of CDN $413 billion.
    Sun Life Financial Inc. trades on the Toronto (TSX), New York (NYSE) and
Philippine (PSE) stock exchanges under ticker symbol SLF.

    About Scotia Securities Inc. and Scotiabank

    Scotia Securities Inc. (SSI) is a wholly owned subsidiary of Scotiabank.
SSI offers a dual platform as the manager of one of Canada's top mutual fund
companies and as a MFDA (Mutual Funds Dealers Association) dealer through the
domestic Scotiabank branch network.
    Scotiabank is one of North America's premier financial institutions and
Canada's most international bank. With more than 60,000 employees, Scotiabank
Group and its affiliates serve approximately 12.5 million customers in some 50
countries around the world. Scotiabank offers a diverse range of products and
services including personal, commercial, corporate and investment banking.
With $462 billion in assets (as at July 31, 2008), Scotiabank trades on the
Toronto (BNS) and New York Exchanges (BNS). For more information please visit

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For further information:

For further information: Media Contacts: Frank Switzer, Scotiabank
Public Affairs, (416) 866-7238; Ann DeRabbie, Scotiabank Public Affairs, (416)

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