August 10, 2005
United Pools receive permission to invest in shares of CI Financial (CIX)
TORONTO (August 10, 2005) - United Financial Corporation announced today that it has received permission from the Canadian securities regulators for the pools it manages to invest in common shares of its parent company, CI Financial (TSX symbol: CIX).
"This exemption broadens the choice of investments the sub-advisors can make, and this only benefits our investors in the United Pools. We are pleased to be able to offer our investors the opportunity to invest in a leading Canadian investment management company. CI Financial is a member of the S&P/TSX Composite Index and has been one of the top 10 performing stocks on the index since June 1994," said Steven Donald, President and Chief Operating Officer of United Financial.
United Financial has established an independent review committee (IRC) comprised of William Harding, Stuart P. Hensman, Stephen T. Moore and Sharon M. Ranson. Each member of the IRC is independent of United Financial in that none has a direct or indirect relationship with the United Pools, United Financial, or any entity related to United Financial that a reasonable person would consider might interfere with the exercise of the member’s independent judgement regarding conflicts of interest facing the sub-advisor of the pools. The IRC will review, at least every calendar quarter, the decisions made on behalf of each pool to buy, sell or continue to hold shares of CIX and to form an opinion whether such decisions were, and continue to be, in the best interests of the pool without regard to United Financial or any entity related to United Financial and: (a) represent the business judgement of the pools’ sub-advisor, uninfluenced by considerations other than the best interests of the pool, (b) have been made free from any influence by CIX and without taking into account any consideration relevant to CIX, and (c) do not otherwise exceed the limitations of applicable law.
The IRC will advise the Canadian securities regulators if the IRC determines that any investment does not meet the criteria described above, or if any other condition of the permission to make such investments has not been satisfied, together with any action that the IRC or the pool’s sub-advisor has taken or proposes to take following such a determination. In carrying out their responsibilities, the members of the IRC will exercise their powers and discharge their duties honestly, in good faith and in the best interests of investors in the United Pools and, in so doing, will exercise the degree of care, diligence and skill that a reasonably prudent person would exercise in the circumstances.
All members of the IRC currently are members of the Board of Governors of the portfolios managed by United Financial and, as such, are paid a fixed annual fee, which is allocated to all portfolios under United Financial’s management (generally pro rata based upon their relative net asset values). There is no intention to pay the members of the IRC any compensation in addition to their usual compensation as members of the Board of Governors.
United Financial required permission from the Canadian securities regulators for the United Pools to invest in CIX shares because CIX is the parent company of United Financial.
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About United Financial Corporation
United Financial Corporation (formerly Assante Asset Management Ltd.), a subsidiary of Assante Corporation, provides a broad range of portfolio management solutions exclusively through a national network of financial advisors affiliated with Assante Wealth Management and IQON Financial. United Financial Corporation has $9 billion of assets under management. Assante Corporation is a wholly owned subsidiary of CI Financial.
For further information please contact:
Steven Donald
President and Chief Operating Officer
United Financial Corporation
Tel: (416) 681-5650
Media contact:
Kavitha Karnaker
Assante Wealth Management
Tel: (416) 681-7046
