September 5, 2003 - First Asset Yield Opportunity Trust (TSX: FAY.UN) is pleased to announce that the Trust's syndicate of agents, led by CIBC World Markets Inc. and TD Securities Inc., have exercised their over-allotment option and acquired an additional 136,847 units of the Trust at $25 per unit, representing additional gross proceeds of $3.4 million to the Trust. In aggregate, the Trust raised gross proceeds of $48.4 million in connection with its initial public offering.
First Asset Funds Inc. is the Trust's manager and trustee, and Goldman Sachs Asset Management, L.P., one of the world's pre-eminent high-yield investment managers, is the Trust's Portfolio Manager. The Trust 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 Trust is targeting monthly distributions of $0.1458 per unit or $1.75 per annum to yield 7% on the $25 subscription price. The second investment objective is to preserve and enhance the net asset value of the Trust in order to return at least the original subscription price of the units to unitholders on or about December 31, 2013, the Trust's scheduled termination date.
The distributions are characterized as tax efficient because returns of capital are generally not subject to tax, and distributions that are designated as capital gains will generally be taxed at a lower rate than distributions of interest, dividend and/or other investment income. The return to unitholders and the Trust will depend upon the return on the Global Bond Portfolio by virtue of a Forward Agreement. The Global Bond Portfolio will consist primarily of global high-yield instruments selected by Goldman Sachs Asset Management.
First Asset Funds Inc., the manager of the Trust, 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 Tanya Carey, Investor Relations, First Asset Funds Inc. at (416) 642-1289 or 1-877-642-1289.