Toronto, April 7, 2005 - First Asset Funds Inc. is pleased to announce that First Asset Equal Weight Small-Cap Income Fund (the "Fund") has filed and has received a receipt dated April 7, 2005 from the securities regulators of all the Canadian provinces for the final prospectus for its offering of up to 10 million units ($100 million). The offering is scheduled to close on or about April 26, 2005. The subscription price per unit is $10, with a minimum initial investment of $1,000. The Toronto Stock Exchange ("TSX") has conditionally approved the listing of the units (FAS.UN), subject to fulfillment by the Fund of the requirements of the TSX.
The Fund is designed to provide unitholders with monthly cash distributions and the opportunity for capital appreciation by investing in an equally weighted diversified portfolio of Small-Cap Income Trusts on a passive basis.
The Fund's portfolio will be comprised of an approximate equal dollar amount of securities of each Small-Cap Income Trust listed on the Toronto Stock Exchange that pays a regular distribution and that has a market capitalization of not less than $50 million and not more than $400 million at the time of investment. As at March 29, 2005, there were 80 qualifying Small- Cap Income Trusts. As a result of the equal weight approach, each Small-Cap Income Trust would constitute approximately 1.25% of the portfolio. The portfolio will be rebalanced annually to maintain the equal weighting.
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 $28.9 billion in assets under management or administration as at February 28, 2005.
The syndicate of agents for this offering is being led by CIBC World Markets Inc. and RBC Capital Markets, and includes BMO Nesbitt Burns Inc., National Bank Financial Inc., Scotia Capital Inc., TD Securities Inc., HSBC Securities (Canada) Inc., Canaccord Capital Corporation, Desjardins Securities Inc., Dundee Securities Corporation, First Associates Investments Inc., Raymond James Ltd., Wellington West Capital Inc., Berkshire Securities Inc., Research Capital Corporation, and Richardson Partners Financial Limited.
For further information, please contact Tanya Carey, Investor Relations, First Asset Funds Inc. at 416-642-1289 or 1-877-642-1289, or visit www.firstassetfunds.com.