Administration October 5, 2003

CI Picks up Mutual Fund Companies

May 22, 2002 (PLANSPONSOR.com) - CI Fund Management Inc, (CI) a Toronto asset manager, has agreed to acquire two mutual fund subsidiaries from Sun Life Financial Services of Canada.

Reported by

Fred Schneyer

According to an announcement, CI will acquire Spectrum Investment Management Limited from Sun Life and Clarica Diversico Ltd., from Clarica. Sun Life is finalizing its 2001 purchase of Clarica Life.

Sun Life Financial is slated to receive the equivalent of approximately 74 million common shares of CI worth $558 million (C$860 million), which the announcement said will represent a 30% ownership stake after the deal is completed.

The companies said the mutual-fund acquisitions would add $13.2 billion in assets under management to CI.

The transaction is expected to close in July, following the required notification to unit holders of the Spectrum and Clarica funds and regulatory approval, which is expected later this month.

On completion, CI will have over $39 billion in fee-earning assets, including approximately $34 billion in mutual and segregated funds. As a result, CI will become the fourth-largest fund company in Canada, as measured by mutual fund assets under management excluding money market funds.