Mackenzie Financial Corp., manager of the Mackenzie Cundill mutual funds, today announced it has entered into an agreement to acquire all of the assets of Cundill Investment Research Ltd. and related entities (Cundill Group).

Cundill Group is currently sub-advisor to the Mackenzie Cundill mutual funds and other Mackenzie mandates. There will be no changes in the portfolio managers of the Mackenzie funds that Cundill Group sub-advises, nor to the investment objectives of these funds as a result of this transaction.

Cundill Group is one of the investment industry’s most respected investment managers, renowned for its fundamental value approach. Under its long-standing strategic alliance with Mackenzie, the firm is currently sub-advisor to over $12.5 billion in assets of the Mackenzie Cundill mutual funds and other Mackenzie mandates. Cundill Group also manages over $3 billion of institutional and high net worth mandates to a global client base.

“The acquisition of the Cundill Group is consistent with our longer-term strategy to provide high quality investment management to our mutual funds and is the natural evolution of a successful eight-year partnership between Mackenzie and Cundill in the Canadian retail mutual fund industry,” said Charlie Sims, president and CEO of Mackenzie Financial, in a news release.

Peter Cundill, founder of the Cundill Group, added: “This transaction represents an extraordinary opportunity for our team to formalize one of the most successful partnerships in Canadian financial services and to allow our investment management team to continue to focus on doing what we do best – selecting securities where financial returns can be realized for our clients and fund investors.”

Upon completion of the acquisition, expected by the end of the third quarter of 2006, Cundill’s investment management team will operate as a separate division of Mackenzie, based in Vancouver. Peter Cundill will continue to direct the team in his role as chief investment officer. All members of the Cundill investment team will continue with the new organization.