CANADIAN Financials & Utilities Split Corp.

November 21, 2007 18:42 ET

CANADIAN Financials & Utilities Split Corp. (TSX:CFS) Announces Distribution Increase for Class A Shares

TORONTO, ONTARIO--(Marketwire - Nov. 21, 2007) - Connor, Clark & Lunn Capital Markets Inc. ("CC&L Capital Markets") is pleased to announce an increase in monthly distributions payable to holders of Class A Shares of CANADIAN Financials & Utilities Split Corp. (the "Company") (TSX:CFS) from $0.022 per unit to $0.026 per unit. The first distribution of $0.026 per unit will be paid on December 17, 2007 to holders of Class A Shares of record on November 30, 2007. The change in the monthly distribution rate represents an increase of approximately 18% and is the second increase in distributions since the Company's launch in February 2007. Since inception, the monthly distribution rate has increased by 30%.

The Company was created to provide investors with a low cost, diversified investment in a high quality portfolio comprised of Canadian banks, Canadian utilities and pipeline issuers and Canadian non-bank financial issuers, utilizing an innovative split share structure. The investment objectives with respect to the Class A Shares are to provide holders with: (i) tax-efficient regular monthly distributions, expected to be primarily return of capital; (ii) the opportunity for capital appreciation and dividend growth on a leveraged basis. The Company's investment objectives with respect to the Preferred Shares are to: (i) provide holders of Preferred Shares with quarterly fixed cumulative distributions equal to 4.25% of the issue price; and (ii) repay the original issue price of $10.00 on redemption of the preferred shares on January 31, 2012. The Preferred Shares have been assigned a rating of Pfd-1 by Dominion Bond Rating Service Limited.

The Preferred Shares and Class A Shares trade on the Toronto Stock Exchange under the symbols "CFS.PR.A and CFS" respectively.

CC&L Capital Markets is the manager and investment manager of the Company. 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 $37 billion in financial assets through its affiliated investment managers on behalf of institutional, private, and retail clients.

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