The Fund’s investment objectives are to provide Unitholders with the benefits of monthly cash distributions together with the opportunity for capital appreciation through the active management of a portfolio of REITs and real estate corporations that are listed on Canadian stock exchanges.

On September 29, 2006 First Asset Equal Weight Small-Cap Income Fund (the "Small-Cap Fund") and First Asset Equal Weight REIT Income Fund (TSX: RIT.UN) (the "REIT Fund") announced the completion of the merger of the Small-Cap Fund into the REIT Fund. The Small-Cap Fund’s portfolio securities were converted into cash and transferred to the REIT Fund in exchange for units. The merger was accomplished on a tax-deferred roll-over basis for unitholders of the Small-Cap Fund. On a per unit basis, each unit of the Small-Cap Fund was converted into 0.6581 units of the REIT Fund.

The exchange ratio was determined by dividing (i) the net asset value per unit of the Small-Cap Fund as at the close of business on September 28, 2006 (i.e. $8.22 per Unit) by (ii) net asset value per unit of the REIT Fund as at the close of business on September 28, 2006 (i.e. $12.49 per Unit).