Press Releases

Diversified Convertible Debenture Fund Files Amended and Restated Preliminary Prospectus

TORONTO, November 8, 2006 - First Asset Funds Inc. wishes to announce that an amended and restated preliminary prospectus for Diversified Convertible Debenture Fund (formerly, "Income Trust Convertible Debenture 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 prospectus is being amended to clarify the Fund's ability to invest in convertible debentures of corporations as well as the equity securities of corporations, in addition to those of income trusts.

The Fund's investment objectives are to provide Unitholders with (i) quarterly cash distributions, and (ii) the opportunity for capital appreciation, by actively investing in a diversified portfolio comprised primarily of convertible debentures. The investment advisor, First Asset Investment Management Inc., believes that convertible debentures offer an attractive investment opportunity, providing relative security of principal, income and potential capital appreciation. Convertible debentures generally offer (i) security of principal through the obligation of the issuer to repay the principal amount in full at maturity, (ii) income from fixed coupons, and (iii) the potential for capital appreciation through the holder's right to convert their securities at a specified price into the underlying equity securities of the issuer.

Prospective purchasers may purchase trust units either by cash payment or by an exchange of freely tradeable convertible debentures of any of the Exchange Eligible Issuers listed in the table below. Prospective purchasers that hold certificates representing Convertible Debentures will be required to re- register these certificates in the name of their broker in order to effect a deposit through CDS.

Exchange Eligible Issuer Convertible Debenture TSX Symbol CUSIP Number
Advantage Energy Income Fund 8.25% due February 1, 2009 AVN.DB.B 00762LAC5
  7.50% due October 1, 2009 AVN.DB.C 00762LAD3
  7.75% due December 1, 2011 AVN.DB.D 00762LAE1
  6.50% due June 30, 2010 AVN.DB.E 00762LAF8
Alexis Nihon Real Estate Investment Trust 6.20% due June 30, 2014 AN.DB 015380AA6
Algonquin Power Income Fund 6.65% due July 31, 2011 APF.DB 015910AA0
Arctic Glacier Income Fund 6.50% due July 31, 2011 AG.DB 039675AA1
Atlantic Power Corporation 6.25% due October 31, 2011 ATP.DB 04878QAH6
Bonavista Energy Trust 6.75% due June 30, 2010 BNP.DB.A 098536AB1
Canadian Hotel Income Properties Real Estate Investment Trust 6.00% due November 30, 2014 HOT.DB.A 135928AF6
Canetic Resources Trust 9.40% due July 31, 2008 CNE.DB.A 137513AA5
  6.50% due July 31, 2010 CNE.DB.B 137513AB3
  6.50% due December 31, 2011 CNE.DB.E 137513AH0
Chemtrade Logistics Income Fund 10.00% due December 31, 2007 CHE.DB 16387PAA1
Cineplex Galaxy Income Fund 6.00% due December 31, 2012 CGX.DB 172453AA0
Clean Power Income Fund 6.75% due December 31, 2010 CLE.DB 18450KAA0
Clearwater Seafoods Income Fund 7.00% due December 31, 2010 CLR.DB 185384AA2
ClubLink Corporation 6.25% due October 31, 2012 CSD.DB.U 22237QAB7
Cominar Real Estate Investment Trust 6.30% due June 30, 2014 CUF.DB 199910AA8
Countryside Canada Power Inc. 6.25% due October 31, 2012 CSD.DB.U 22237QAB7
Creststreet Power & Income Fund LP 7.00% due March 15, 2010 CRS.DB 226294AA4
  8.00% due September 15, 2011 CRS.DB.A 226294AB2
Data Group Income Fund (The) 6.75% due December 31, 2011 DGI.DB 23768UAA5
Daylight Energy Trust 8.50% due December 1, 2009 DAY.DB 239600AA7
Dundee Real Estate Investment Trust 6.50% due June 30, 2014 D.DB 265270AA6
  5.70% due March 31, 2015 D.DB.A 265270AB4
Eveready Income Fund 7.00% due June 30, 2011 EIS.DB 29976XAA4
Firm Capital Mortgage Investment Trust 6.00% due June 30, 2013 FC.DB 318324AA8
First Capital Realty Inc. 5.50% due September 30, 2017 FCR.DB.A 31943BAH3
Fort Chicago Energy Partners L.P. 6.75% due December 31, 2010 FCE.DB.B 346921AB5
Gateway Casinos Income Fund 5.35% due June 30, 2011 GCI.DB 36759MAA6
Harvest Energy Trust 6.50% due December 31, 2010 HTE.DB.B 41752XAD3
  10.50% due January 31, 2008 HTE.DB.C 41752XAG6
  6.40% due October 31, 2012 HTE.DB.D 41752XAF8
InnVest Real Estate Investment Trust 6.25% due April 15, 2011 INN.DB.A 45771TAB4
  6.00% due May 31, 2013 INN.DB.B 45771TAD0
IPC US Real Estate Investment Trust 6.00% due November 30, 2014 IUR.DB.U 44981BAA4
  5.75% due September 30, 2012 IUR.DB.V 44981BAB2
International Minerals Corporation 5.50% due May 19, 2012 IMZ.DB 459875AA8
KIK Acquisition Company 6.50% due November 30, 2010 KCC.DB.U 48247WAA9
Killam Properties Inc. 6.50% due May 5, 2012 KMP.DB 494104AB8
Magellan Aerospace Corporation 8.50% due January 31, 2008 MAL.DB 558912AA9
Newport Partners Income Fund 7.50% due December 31, 2010 NPF.DB 65230PAA7
Paramount Energy Trust 6.25% due June 30, 2010 PMT.DB.A 699219AC5
  6.25% due April 30, 2011 PMT.DB.B 699219AE1
Pengrowth Energy Trust 6.50% due December 31, 2010 PGF.DB 706902AA1
PrimeWest Energy Trust 7.50% due September 30, 2009 PWI.DB.A 741930AA9
  7.75% due December 31, 2011 PWI.DB.B 741930AB7
Progress Energy Trust 6.75% due June 30, 2010 PGX.DB 74326TAA6
  6.25% due September 30, 2011 PGX.DB.A 74326TAB4
Provident Energy Trust 6.50% due August 31, 2012 PVE.DB.C 74386KAD6
  6.50% due April 30, 2011 PVE.DB.D 74386KAE4
Retrocom Mid-Market Real Estate Investment Trust 7.50% due July 31, 2012 RMM.DB 761298AA6
Rogers Sugar Income Fund 6.00% due June 29, 2012 RSI.DB.A 774910AC7
  5.90% due June 29, 2013 RSI.DB.B 774910AE3
Royal Host Real Estate Investment Trust 7.90% due April 30, 2009 RYL.DB.A 78029AAC4
  6.00% due October 31, 2015 RYL.DB.B 78029AAD2
SFK Pulp Fund 7.00% due December 31, 2011 SFK.DB 784142AA9
Sound Energy Trust 8.75% due June 30, 2009 SND.DB 83607XAA8
Sunrise Senior Living Real Estate Investment Trust 6.40% due December 31, 2011 SZR.DB 86770QAA7
Superior Plus Income Fund 8.00% due November 1, 2008 SPF.DB.A 867946AB1
  5.75% due December 31, 2012 SPF.DB.B 867946AD7
  5.85% due October 31, 2015 SPF.DB.C 867946AE5
Taylor NGL Limited Partnership 5.85% due September 10, 2010 TAY.DB 877256AA5
Thunder Energy Trust 7.25% due April 30, 2011 THY.DB 88604TAA9
True Energy Trust 7.50% due June 30, 2011 TUI.DB 897839AA4
Vault Energy Trust 8.00% due June 30, 2010 VNG.DB 92241AAA1
  7.20% due May 31, 2011 VNG.DB.A 92241AAB9
Versacold Income Fund 8.50% due October 31, 2008 ICE.DB 92511PAA1
  6.25% due January 31, 2010 ICE.DB.A 92511PAC7
  7.00% due December 31, 2010 ICE.DB.B 92511PAD5
  6.75% due November 30, 2011 ICE.DB.C 92511PAG8
Western Canadian Coal Corp. 7.50% due March 24, 2011 WTN.DB 957860AA7
Westfield Real Estate Investment Trust 6.25% due May 31, 2013 WFD.DB.C 960196AC7
YPG Holdings Inc. 5.50% due August 1, 2011 YPG.DB 984246AC2

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

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.