Connor, Clark & Lunn Capital Markets Inc.

Connor, Clark & Lunn Capital Markets Inc.

September 25, 2007 19:02 ET

Connor, Clark & Lunn Real Return Income Fund Declares Monthly Distribution

TORONTO, ONTARIO--(Marketwire - Sept. 25, 2007) - Connor, Clark & Lunn Real Return Income Fund (the "Fund") today announced a monthly cash distribution of $0.03125 per unit. The distribution represents a yield of 3.75% per annum yield on the original issue price of $10.00 per unit. The distribution will be paid on November 15, 2007 to unitholders of record at the close of business on October 31, 2007. Distributions paid by the Fund are floating and monthly targets are established on a quarterly basis.

The anticipated monthly distribution rate for the fourth quarter of 2007 is $0.03125 per unit, compared to $0.03333 per unit since the beginning of 2007. Distributions paid by the Fund are expected to consist primarily of tax-advantaged return of capital. Based on the Fund's closing price on September 25, the new distribution rate represents an annualized pre-tax current yield of approximately 5.1% and a pre-tax interest equivalent yield of 7.2%.

Over the past twelve months inflation, as measured by the US Consumer Price Index for All Urban Consumers ("CPI-U"), was less than 2.0% and was flat over the past quarter with inflation down approximately -0.20% in August. In contrast, inflation for the trailing twelve months at inception of the Fund was 3.5%.

Connor, Clark & Lunn Real Return Income Fund (the "Fund") is invested in a portfolio of real return bonds issued by governments with AAA credit ratings, primarily US Treasury Inflation Protection Securities ("US TIPS") on a leveraged basis. The objectives of the Fund are to provide tax-efficient income that is linked to the rate of U.S. inflation as well as capital preservation. In order to provide diversification, improve net asset value stability and increase expected returns, up to 20% of the portfolio may be invested in a mix of other assets.

Western Asset Management Company ("Western Asset") is the Fund's investment advisor and is responsible for actively managing and making investment decisions with respect to the portfolio. Western Asset is one of the world's premier fixed income managers with offices in Pasadena, New York, London, Tokyo, Singapore, Hong Kong, Melbourne and Sao Paulo.

Connor, Clark & Lunn Capital Markets Inc. ("CC&L Capital Markets") is the Manager of the Fund. CC&L Capital Markets is a leading Canadian structured financial products investment firm that is focused on creating and managing high quality investment vehicles that will stand the test of time and ultimately allow our clients to achieve their personal financial goals. Formed in 2001, CC&L Capital Markets has designed, launched and currently manages thirteen publicly traded investment vehicles with combined assets of approximately $1.2 billion. CC&L Capital Markets Inc. is part of the Connor, Clark & Lunn Financial Group, one of Canada's largest and fastest growing asset management firms, responsible for the investment of over $35 billion in financial assets through its affiliated investment managers on behalf of institutional, private, and retail clients.

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