Scotiabank snaps up 37% of CI stake

Scotiabank will pay $2.3 billion for Sun Life Financial Inc.'s 37 per cent stake in CI Financial Income Fund, the two companies announced Monday. Scotiabank president and CEO Rick Waugh said the bank wants more, not less, wealth management work. (Canadian Press/Andrew Vaughan) Scotiabank said the deal gives the chartered bank a leg up in the relatively lucrative business of managing other people's money. Shares of both companies fell in TSX trading Monday by more than the average drop in financial issues. Scotiabank closed down $2.16 or 4.6 per cent at $45. Sun Life was off $1.89 or 5.3 per cent at $34.13. "We have seen solid growth in our wealth management products and services. Through this agreement, we gain a significant stake in one of Canada's wealth management market leaders with a long track record of superior... [read full story]