CI Fund Management Inc. is adding almost 600 new advisors to its growing roster, announcing today it has reached a $38.5-million deal to acquire IQON Financial Management Inc. and Synera Financial Services Inc. from Sun Life Financial Inc.

CI and Assante Corp., a wholly owned subsidiary of CI acquired last August, are paying a total of $38.5 million in cash. The acquisitions are expected to be completed by June 2004, subject to regulatory approvals.

IQON, started in 1995 and based in Winnipeg, is a prominent financial planning firm with 400 independent advisors across the country administering more than $4 billion in assets. Synera. Synera established in 2002 by Sun Life following its acquisition of Clarica Life Insurance Co., supports 170 independent insurance advisors across Canada.

Bill Holland, president and CEO of Toronto-based CI said the two companies are a strong complement to Assante, which CI acquired last November. Assante has a network of more than 1,000 independent financial advisers with $20 billion in assets under administration.

“With this transaction, we are building an alliance of three leading financial advisory organizations — Assante, IQON and Synera. We are committed to the independent advisor model and providing innovative solutions for Canadians seeking financial advice,” said Joe Canavan, president and CEO of Assante.

IQON and Synera will continue to operate as independent businesses reporting to Assante, Canavan said in a release. “These are well-run companies with high-calibre advisors and our goal is to preserve and build on their strengths and accomplishments.”

“We will be looking at opportunities to share expertise and resources between the three firms, so that we can achieve cost efficiencies, enhance their products and services, and better serve the needs of all of our advisors and clients.”

CI said its board of directors of CI has approved the purchase of IQON and Synera. Sun Life Financial owns about 34% of the outstanding shares of CI. The purchase does not require the approval of other shareholders of CI since the transaction size is significantly less than 25% of CI’s market capitalization.