January 12, 2004 - Preferred Securities Income Fund (TSX: PFS.UN) is pleased to announce that the Fund's syndicate of agents, led by CIBC World Markets Inc. and TD Securities Inc., have exercised their over-allotment option and acquired an additional 200,000 units of the Fund at $25 per unit, representing additional gross proceeds of $5 million to the Fund. In aggregate, the Fund raised gross proceeds of $130 million in connection with its initial public offering.
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 preeminent 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.
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 focused on providing sophisticated products and services to the institutional, high net worth and affluent markets.
For further information, please contact First Asset Funds Inc. at 1-877-642-1289.