Bank of Nova Scotia has closed its 37% strategic investment in CI Financial Income Fund and become CI’s largest single shareholder, the bank announced Friday.

Scotiabank bought Sun Life Financial’s stake of 104,609,895 CI trust units for $1.55 billion in cash, $500 million in common shares at $34.60 per share, and $250 million in 6.25% five year rate reset preferred shares.

“This transaction demonstrates our ongoing commitment to growing the bank’s wealth management business,” said Rick Waugh, Scotiabank president and CEO.

CI is Canada’s third largest mutual fund company by assets under management.

Going forward, Sun Life will continue its strong distribution arrangement with CI.

“We are pleased with the completion of this transaction. We look forward to a long and mutually beneficial relationship with CI and the bank,” said Donald Stewart, CEO of Sun Life Financial.

IE