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First Asset Funds Announce Special Unitholder Meetings

TORONTO, ONTARIO--(CCNMatthews - May 1, 2006) - First Asset Funds Inc., the Manager and Trustee of First Asset Yield Opportunity Trust, Preferred Securities Income Fund, Preferred Securities Limited Duration Fund, First Asset Equal Weight REIT Income Fund, First Asset Equal Weight Pipes & Power Income Fund, and First Asset Equal Weight Small-Cap Income Fund (each individually, a "Fund", or collectively, the "Funds") announces that it will hold special meetings of the unitholders of the Funds on June 2, 2006 to consider various proposals relating to the Funds. Unitholders of Record on April 28, 2006 will be entitled to receive notice of and vote at the meetings.

At the meetings Unitholders will be asked to consider extraordinary resolutions approving the following amendments to the declarations of trusts:

  1. Conformity to Current Market Practice: For all Funds, to permit the trustee of the Fund to make amendments to the declaration of trust of the Fund, without the approval of unitholders, for the purpose of bringing the declaration of trust into conformity with current market practices.

  2. Amendment to Financial Statement Requirements: For all Funds, to permit the preparation, filing and delivery to unitholders of only such financial statements and other continuous disclosure documents as are required from time to time by applicable laws.

  3. Amendment to Investment Restrictions: For all Funds (other than Preferred Securities Income Fund, Preferred Securities Limited Duration Fund and First Asset Yield Opportunity Trust), to remove or amend certain investment restrictions that no longer apply due to changes in applicable tax legislation subsequent to the creation of the Funds.

  4. Additional Redemption Right: For all Funds, when offered by the manager of the Fund (a) to permit unitholders to switch to other investment vehicles sponsored or promoted by the manager or an affiliate of the manager of the Fund, and (b) to allow for the equitable allocation of the Fund's income and other amounts among redeeming unitholders.

  5. Issuance of Additional Units: For all Funds, to permit the trustee of each Fund to issue in circumstances the trustee deems appropriate units of the Fund at a price per unit that is less than the net asset value per unit at such time without obtaining the approval of unitholders.

  6. Authority to Merge with Affiliated Funds: For all Funds, granting the manager of the Fund the authority, without seeking unitholder approval, to merge or otherwise combine or consolidate the Fund with one or more other funds administered by the manager or an affiliate of the manager of the Fund, provided that the fund or funds to be merged or otherwise combined or consolidated with the Fund and the merger itself meet certain specified criteria.

  7. Reduction in Quorum Size: For all Funds, to reduce the number of outstanding units required to be held by unitholders in order to constitute a quorum of unitholders at any meeting.

  8. Elimination of Termination Date: For all Funds, to remove the fixed termination date of each Fund, such that, should the amendment be approved, the Funds will not have a fixed duration.

  9. Termination of the Fund by the Manager: For all Funds, to permit the manager of the Fund, in its discretion, to terminate the Fund without approval of unitholders if, in its opinion, it is no longer economically practical to continue the Fund, or if it determines that it would be in the best interests of the unitholders to terminate the Fund.

  10. Allocation of Realized Capital Gains to Redeeming Unitholders: For all Funds, to permit the trustee or the manager of the Fund to designate as payable to redeeming unitholders capital gains realized by the Fund in connection with the disposition of securities required in order to fund the redemption.

  11. Payment of Management in Units: For all Funds (other than First Asset Equal Weight Pipes & Power Income Fund, and First Asset Equal Weight Small-Cap Income Fund, which already benefit from the proposed change), to permit the management fees to be paid, at the option of the manager of the Fund and without unitholder approval, in either cash or units issued at the net asset value of the units at the time of issuance.

  12. Deduction of Costs of Redemption from Redemption Proceeds: For all Funds (other than First Asset Equal Weight REIT Income Fund, First Asset Equal Weight Pipes & Power Income Fund, and First Asset Equal Weight Small-Cap Income Fund, which already benefit from the proposed change), to provide for the deduction, on a pro rata basis among redeeming unitholders, of all of the costs of funding a redemption of units from the proceeds of such redemption paid to the redeeming unitholders.

  13. Amendment of Investment Objectives, Guidelines and Restrictions. For First Asset Equal Weight Pipes & Power Income Fund, to make all such amendments as are, in the opinion of the Trustee necessary or desirable, to convert this fund to an actively managed portfolio of funds that will include funds that service and support Pipes and Power Trusts, and to increase the fee paid to the Manager of the Trust to 0.75% of the net asset value of the Fund, plus applicable taxes.

Details of the proposals will be outlined in a management information circular to be prepared and delivered to unitholders in connection with the meeting. The management information circular will be mailed shortly following the record date and will be available at that time on www.sedar.com. All amendments to the declarations of trust remain subject to receipt of all necessary regulatory approvals, including consent of the Toronto Stock Exchange.

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