Connor, Clark & Lunn Global Financials Fund and Connor, Clark & Lunn Global Financials Fund II announced that at special meetings of unitholders held today, the unitholders of each of the funds approved the merger of Global Financials Fund and Global Financials Fund II.

In addition, Global Financials Fund II announced that at its special meeting unitholders of Global Financials Fund II voted in favour of permitting Global Financials Fund II to issue warrants to purchase Global Financials Fund II units to unitholders of Global Financials Fund II.

As both funds have similar underlying portfolios and as New Star Asset Management Ltd. acts as their investment manager, 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, say CC&L Capital Markets.

Once the merger is 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. In order to implement the merger, Global Financials Fund will transfer all of its net assets to Global Financials Fund II for common units of Global Financials Fund II at an exchange ratio based on the relative net asset value of each of Global Financials Fund and Global Financials Fund II and then all remaining units of Global Financials Fund will be automatically redeemed and each Global Financials Fund unitholder will receive upon such redemption common units of Global Financials Fund II equal to the number of Global Financials Fund units held multiplied by the exchange ratio. The merger is expected to be effective on February 4.

Subject to obtaining all necessary regulatory approvals, Global Financials Fund II plans to issue to its unitholders warrants to subscribe for additional units of Global Financials Fund II by way of a prospectus that it expects to file in February or March 2008.

Once the merger of the Funds has been 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, like unitholders of Global Financials Fund II, be issued warrants to subscribe for additional common units of Global Financials Fund II.