The Trust's investment objectives are to:

1. provide Unitholders with a stable stream of tax efficient monthly distributions consisting of capital gains and return of capital targeted to be $0.1458 per Series A Unit and U.S. $0.044 per Series B Unit; and
2. preserve and enhance the Net Asset Value per Series A Unit and Net Asset Value per Series B Unit in order to return at least $25.00 per Series A Unit and U.S.$10.00 per Series B Unit to Unitholders on or about the Termination Date.

The Trust's return will be linked, by virtue of a forward agreement, to the performance of the Global Bond Portfolio, managed by Goldman Sachs Asset Management.

On December 17, 2007, First Asset Yield Opportunity Trust (TSX: FAY.UN) (“FAY”) completed the merger with Preferred Securities Income Fund (TSX: PFS.UN) (“PFS”) and Preferred Securities Limited Duration Fund (TSX: PLD.UN; PLD.U) (“PLD”). The merger was accomplished on a tax-deferred roll-over basis for unitholders of PFS and PLD. Each unit of PFS was exchanged for 0.7465 Series A units of FAY, and each Series A unit of PLD was exchanged for 0.7541 Series A units of FAY.

In each case, the exchange ratio was determined by dividing (i) the net asset value per unit of PFS or PLD (as the case may be) as at the close of business on December 14, 2007(i.e. $16.76 per PFS Unit or $16.93 per PLD Unit) by, (ii) the net asset value per unit of FAY as at the close of business on December 14, 2007(i.e. $22.45 per Unit). Each Series B unit of PLD will be exchanged for one (1) Class B unit of FAY.