September 21, 2004 - Preferred Securities Limited Duration Fund announces a distribution for the month ending September 30, 2004 of CDN $0.1146 ($1.3752 annualized) per Series A unit (TSX: PLD.UN) and of US $0.0458 ($0.5496 annualized) per Series B unit (TSX: PLD.U). These distributions represent a 10% increase over previous distributions.
On an annualized basis, these distributions represent a yield of 6.3% for Series A units and 6.5% for Series B units on the most recent market price. On a pre-tax interest equivalent basis these annualized yields equal 9.3% for Series A units and 9.6% for Series B units based the current market price, due to the tax-efficient nature of distributions (based on Ontario tax rates).
The Fund's returns, including distributions, are dependent upon the returns of the preferred securities held by Preferred Securities LD Fund. Units of Preferred Securities LD Fund are rated P-2f by Standard & Poors. In both cases, the distribution will be paid on October 15, 2004 to unitholders of record on September 30, 2004.
For further information, please call Tanya Carey at First Asset Funds Inc. at (416) 642-1289 or 1-877-642-1289.