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Preferred Securities Income Fund closes offering and begins trading on TSX

December 16, 2003 - First Asset Funds Inc. is pleased to announce the closing today of the initial public offering of 5 million units of Preferred Securities Income Fund for gross proceeds of $125 million. The Fund's units are listed on the Toronto Stock Exchange under the symbol PFS.UN The Fund has granted the agents for the offering an over-allotment option to acquire additional units of the Trust exercisable at any time up to January 15, 2004.

The Fund has two investment objectives. The first is to pay to unitholders, on a monthly basis, tax-efficient distributions consisting of capital gains and returns of capital. The Fund is targeting monthly distributions of $0.12 per Unit or $1.44 per annum to yield 5.75% on the $25 subscription price. The second investment objective is to preserve and enhance the net asset value of the Fund in order to return at least the original subscription price of the units to unitholders on or about December 31, 2013, the Fund's scheduled termination date.

The Fund offers Canadian retail investors access to the US preferred securities market in a fund managed by Spectrum Asset Management, Inc., one of the world's pre-eminent investment managers in this asset class. Based in Stamford, Connecticut, Spectrum Asset Management is an independently managed, wholly-owned subsidiary of Principal Global Investors, LLC, which, together with its subsidiaries and affiliates, had over $90 billion in assets under management as of October 31, 2003.

First Asset Funds Inc., the manager of the Fund, is a wholly-owned subsidiary of First Asset Management Inc. ("First Asset"). First Asset is an integrated wealth management company that has acquired top tier investment management firms in Canada, rapidly growing to become a leading Canadian asset management company with approximately $22 billion in assets under management or administration, focused on providing sophisticated products and services to the institutional, high net worth and affluent markets.

The syndicate of agents for this offering was led by CIBC World Markets Inc. and TD Securities Inc. and included RBC Dominion Securities Inc., BMO Nesbitt Burns Inc., National Bank Financial Inc., Scotia Capital Inc., Canaccord Capital Corporation, Desjardins Securities Inc., Dundee Securities Corporation, First Associates Investments Inc., HSBC Securities (Canada) Inc. and Raymond James Ltd.

For further information, please contact Tanya Carey, Investor Relations, First Asset Funds Inc. at 1-877-642-1289.