Communiqués de presse

Preferred Securities Limited Duration Fund files final prospectus

February 27, 2004 - First Asset Funds Inc. is pleased to announce that Preferred Securities Limited Duration Fund (the "Fund") has filed, and has received a receipt dated February 27, 2004, from the securities regulators of all the Canadian provinces for, the final prospectus for its offering of two series of units of the Fund.

The Series A units will be denominated in Canadian dollars, with a subscription price of CDN $25 per Unit and a minimum purchase of 100 units. The Series B units will be denominated in US dollars, with a subscription price of US $10 per Unit and a minimum purchase of 150 units. The Toronto Stock Exchange ("TSX") has conditionally approved the listing of both series of units, subject to fulfillment by the Fund of the requirements of the TSX (Series A units - PLD.UN, and Series B units - PLD.U). The offering is scheduled to close on or about March 17, 2004.

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.

The portfolio of preferred securities will be managed by Stamford, Connecticut based Spectrum Asset Management, Inc., 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, a diversified asset management organization. Principal Global Investors is a member of the Principal Financial Group® and manages approximately US$118.5 billion in assets primarily for retirement plans and other institutional clients.

First Asset Funds Inc., the Fund's manager, is a wholly-owned subsidiary of First Asset Management Inc., an integrated wealth management company that has acquired top tier investment management firms in Canada, and which has over $22.5 billion in assets under management or administration.

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.