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Payout Performers™ Income Fund Files Preliminary Prospectus

TORONTO, December 21, 2005 - First Asset Funds Inc. is pleased to announce that a preliminary prospectus for Payout PerformersTM Income Fund (the "Fund") has been filed with the securities regulatory authorities of all the Canadian provinces for an initial public offering of trust units.

The Fund is designed to provide unitholders with monthly cash distributions and the opportunity for capital appreciation by passively investing in a diversified equally-weighted portfolio of securities of Income Trusts listed on the Toronto Stock Exchange that have a history of consecutively raising their annual distributions ("Payout PerformersTM"). In order to qualify as a Payout PerformerTM, an Income Trust must, at the time of investment, have either: (i) consecutively increased its total cash distribution in each of the last five years, or (ii) consecutively increased its total cash distribution in each year of operation and have at least three full years of operating history. In addition, at the time of investment, each Payout PerformerTM must have a market capitalization of not less than $300 million. The portfolio will be rebalanced annually to maintain the equal weighting.

If the portfolio had been formed on December 9, 2005, it would include 20 qualifying Payout PerformersTM. As a result of the equal weight approach, each Payout PerformerTM in this Indicative Portfolio would constitute approximately 5% of the portfolio. The actual portfolio will be constituted following closing.

Prospective purchasers may purchase trust units either by cash payment or by an exchange of units of any Payout PerformersTM in the indicative portfolio, as described in the preliminary prospectus.

First Asset Funds Inc., the manager of the Fund, is an indirect wholly-owned affiliate of Affiliated Managers Group, Inc. ("AMG"). AMG is a U.S.-based asset management holding company with equity investments in a diverse group of mid-sized investment management firms throughout North America and Europe. AMG is listed on the New York Stock Exchange under the symbol "AMG".

The syndicate of agents for this offering is being led by CIBC World Markets Inc. and RBC Capital Markets, and includes BMO Nesbitt Burns Inc., National Bank Financial Inc., Scotia Capital Inc., TD Securities Inc., HSBC Securities (Canada) Inc., Blackmont Capital Inc., Canaccord Capital Corporation, Desjardins Securities Inc., Dundee Securities Corporation, Raymond James Ltd., Research Capital Corporation and Wellington West Capital Inc.

For further information, please call Jeff Labenski, Investor Relations, First Asset Funds Inc. at 416-642-1289 or 1-877-642-1289 or visit www.firstassetfunds.com.