Communiqués de presse

Preferred Securities Limited Duration Fund Files Preliminary Prospectus

January 26, 2004 - First Asset Funds Inc. is pleased to announce that a preliminary prospectus for Preferred Securities Limited Duration Fund (the "Fund") has been filed with the securities regulatory authorities of all the Canadian provinces for an initial public offering of two series of units of the Fund. The Series A units will be denominated in Canadian dollars and the Series B units will be denominated in US dollars.

The Fund's investment objectives are to: (i) provide unitholders with a stable stream of tax efficient monthly distributions consisting of capital gains and returns of capital; (ii) limit the interest rate sensitivity of the net asset value of each series of units by seeking to reduce the effective duration of the fixed interest rate securities to which the Fund is exposed to a maximum of five years; and (iii) preserve and enhance the net asset value of each series in order to return at least the original subscription price of the units to unitholders on or about January 31, 2014, the Fund's scheduled termination date.

Portfolio management will be done by Stamford, Connecticut based Spectrum Asset Management, Inc. Spectrum Asset Management is one of the leading U.S. managers of investment grade preferred securities portfolios, with approximately US$11 billion in assets under management. The firm is an affiliate of Principal Global Investors and a member of the Principal Financial Group®. Principal Global Investors is a diversified asset management organization and a member of the Principal Financial Group®, with expertise in equities, fixed income and real estate investments, as well as specialized overlay and advisory services. Principal Global Investors manages approximately US$110 billion in assets primarily for retirement plans and other institutional clients.

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 with over $22.5 billion in assets under management or administration, focused on providing sophisticated products and services to the institutional, high net worth and affluent markets.

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

For further information, please contact Tanya Carey, Investor Relations, First Asset Funds Inc. at 1-877-642-1289.

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