The board of directors Connor, Clark & Lunn Capital Markets Inc. has approved a proposal that would result in the merger of CC&L Global Financials Fund and CC&L Global Financials Fund II.

As well the board has approved a proposal which would permit Global Financials Fund II to issue warrants to purchase Global Financials Fund II units to unitholders of Global Financials Fund II.

CC&L Capital says both funds have similar underlying portfolios and share the same investment manager, New Star Asset Management Ltd.

It adds that merging Global Financials Fund and Global Financials Fund II “will provide unitholders of both funds with the opportunity to continue their investment in a single fund that will have a larger market capitalization, increased liquidity for the units of the funds and reduced costs on a per unit basis.”

If the Merger Proposal is approved and implemented, Global Financials Fund II will be the continuing fund and unitholders of Global Financials Fund will become holders of common units of Global Financials Fund II.

Whether or not the merger proposal is approved, if the proposal to permit warrants to be issued is approved, Global Financials Fund II proposes to issue to its unitholders warrants to subscribe for additional units of Global Financials Fund II.

If the merger proposal is approved and implemented, holders of Global Financials Fund units who receive common units of Global Financials Fund II on the merger and continue to hold them would likewise be issued warrants to subscribe for additional common units of Global Financials Fund II. The warrants would be issued by way of a prospectus that would need to be prepared, filed and cleared with the Canadian securities regulatory authorities.

Special meetings of unitholders have been called and will be held on Jan. 17, 2007 to vote on the proposals.

Details of the proposals will be set out in a joint management information circular to be prepared and delivered to unitholders. In order for the merger proposal to become effective, it must be approved by a two-thirds majority of the unitholders of each of the Funds present in person or represented by proxy at each of the special meetings.

In order for the proposal to permit warrants to be issued to become effective, it must be approved by a two-thirds majority of the unitholders of Global Financials Fund II present in person or represented by proxy at Global Financials Fund II’s special meeting.

Both of the proposals are also subject to the receipt of all necessary regulatory and stock exchange approvals.