TORONTO, Wednesday, March 17, 2010 - First Asset Diversified Convertible Debenture Fund (TSX: DCD.UN) announces that a special meeting of the Unitholders of the fund will be held on Friday, May 14, 2010 and, if required, an adjourned meeting will be held on Tuesday, May 25, 2010.
At the meeting, Unitholders of the Fund will be asked to consider and approve, among other things, amendments to the declaration of trust to provide for a transaction whereby the Fund would gain exposure to a portfolio consisting primarily of convertible debentures through one or more forward purchase and sale agreements (each a "Forward Agreement") with a Canadian Chartered Bank such that the Fund's distributions paid to Unitholders will continue to be primarily returns of capital for income tax purposes. Since the Fund implemented its mandate to invest primarily in convertible debentures in early 2007, the Fund has been offsetting income earned from investments through the use of its non-capital tax loss carry forwards. These non-capital tax loss carry forwards will be exhausted by the end of this quarter.
Unitholders of record on April 9, 2010 will be entitled to receive notice of and vote at the meetings. A copy of the Notice and Management Information Circular which details the matters to be considered at the meetings will be available on www.sedar.com once it has been mailed.
For more information, please call Robert MacNiven, Director of Investor Relations at (416) 642-1289 or (877) 642-1289, or visit www.firstasset.com.