April 1, 2004 - Preferred Securities Limited Duration Fund 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 375,000 Series A units at CDN $25 per unit, and 265,000 Series B units at US $10 per unit. In aggregate, the Fund has raised gross proceeds of CDN $134,375,000 from the sale of Series A units, and US $37,650,000 from the sale of Series B units. The Fund's units are listed on the Toronto Stock Exchange under the symbols PLD.UN for the Series A units and PLD.U for the Series B units.
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 of units 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 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 approximately CDN $24 billion in assets under management or administration.
For further information, please contact First Asset Funds Inc. at 1-877-642-1289.