CI Financial Converts to an Income Fund

On June 30, 2006, CI Financial Inc. (CI) completed its reorganization into CI Financial Income Fund (the fund). With a market capitalization of more than $8.5 billion, the fund is Canada's largest business income fund and this transaction is the largest conversion to date in the business income fund sector.
The reorganization was completed by way of a plan of arrangement overwhelmingly approved by CI's shareholders. Each common share of CI was exchanged for either a unit of the fund or a unit of Canadian International LP and a special voting unit of the fund.
CI and the fund were represented by Michael Killeen, senior vice-president, general counsel and corporate secretary, assisted by a team from Goodmans LLP led by Stephen Pincus that included Francesa Guolo (corporate), Mitch Sherman and Carrie Smit (tax). John Kruk of McCarthy T├ętrault LLP advised on certain regulatory matters, and Clay Horner of Osler, Hoskin & Harcourt LLP advised a special committee of CI's board.