TORONTO, Dec. 12 /CNW/ - Scotiabank (TSX/NYSE: BNS) today announced it
has closed the Bank's 37 per cent strategic investment in CI Financial Income
Fund ("CI"; TSX: CIX.UN) and become CI's largest single shareholder.
    Scotiabank bought 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 five year rate
reset preferred shares. Going forward, Sun Life will continue its strong
distribution arrangement with CI.
    "This is an excellent strategic investment for Scotiabank. CI is a market
leader with a solid track record of superior performance," said Rick Waugh,
Scotiabank President and Chief Executive Officer. "This transaction
demonstrates our ongoing commitment to growing the Bank's wealth management
business."
    CI is Canada's No. 3 mutual fund company by assets under management. CI's
excellence in fund management has been recognized with 25 Canadian Investment
Awards over the past eight years, including 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 DundeeWealth, 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. As a result of the completion of this transaction,
Scotiabank has ownership of, or control over, 104,703,774 units of CI
Financial Income Fund, representing approximately 37.6 per cent of the
outstanding units of CI. 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 917 units of CI beneficially owned by Scotiabank and
92,962 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.

    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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