TORONTO, Dec. 3 /CNW/ - Scotiabank (TSX/NYSE: BNS) today announced that
the Bank plans to close its 37 per cent strategic investment in CI Financial
Income Fund ("CI"; TSX: CIX.UN) next week, pending receipt of executed
agreements, regulatory approvals and acceptance by the Toronto Stock Exchange.
    Scotiabank is purchasing Sun Life Financial's ("Sun Life" TSX/NYSE:SLF)
stake of 104,609,895 CI trust units for $1.55 billion in cash, $500 million in
common shares at $34.60 per share and $250 million in 6.25 per cent rate reset
preferred shares.
    Following the completion of this transaction Scotiabank will have
ownership of, or control over 104,783,954 units, representing approximately
37.6 per cent of the outstanding units of CI. In addition, Scotiabank will be
CI's largest single shareholder and represented on the CI Board of Directors.
    "This transaction demonstrates Scotiabank's ongoing commitment to growing
our wealth management business," said Rick Waugh, President and Chief
Executive Officer of Scotiabank. "A strategic investment in CI gives us a
significant stake in a market leader and complements Scotiabank's excellent
wealth management products and services."
    Scotiabank Group Head, Canadian Banking, Chris Hodgson said: "We are
pleased that Sun Life will continue to have a strong distribution arrangement
with CI."
    CI is Canada's No. 3 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 Advisors' Choice Favourite
Investment Fund Company in 2005 and Analysts' Choice Investment Fund Company
of the Year in 2006 and 2007.
    Scotia Securities Inc. (SSI), a wholly-owned subsidiary of Scotiabank,
has been a consistently strong performer among mutual fund companies through
its ScotiaFunds family of funds. For October year-to-date, SSI led bank-owned
companies and was No. 3 in the mutual fund industry in terms of net long-term
sales. SSI has continued its strong sales performance, with positive net sales
in the month of November. Today's announcement, combined with Scotiabank's
investment in Dundee Wealth, further cements the Bank's strong position in the
mutual fund industry.
    Scotia Capital acted as exclusive financial advisor to Scotiabank.
    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.
Scotiabank intends to amend its current short form base shelf prospectus to
permit Scotiabank to distribute the common shares to be delivered to Sun Life
in connection with the completion of this transaction.

    About Scotia Securities Inc. and Scotiabank

    Scotia Securities Inc. is a wholly owned subsidiary of Scotiabank. SSI
offers a dual platform as the manager of ScotiaFunds, one of Canada's top
mutual fund families 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 $508 billion in assets (as at October 31, 2008), Scotiabank trades on the
Toronto (BNS) and New York Exchanges (BNS). For more information please visit
www.scotiabank.com.

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on page 56 of the Bank's 2007 Annual Report.
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