First Asset Funds Inc. today announced the closing of the initial public offering of 5 million units of Preferred Securities Income Fund for gross proceeds of $125 million. The fund’s units are listed on the Toronto Stock Exchange under the symbol PFS.UN.

First Asset Funds says the fund has granted the agents for the offering an over-allotment option to acquire additional units of the trust exercisable at any time up to Jan. 15, 2004.

According to First Assets Funds, the Fund 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 fund is targeting monthly distributions of $0.12 per Unit or $1.44 per annum to yield 5.75% on the $25 subscription price.

The second investment objective is to preserve and enhance the net asset value of the fund in order to return at least the original subscription price of the units to unitholders on or about Dec. 31, 2013, the fund’s scheduled termination date.

The fund offers Canadian retail investors access to the US preferred securities market in a fund managed by Spectrum Asset Management, Inc. based in Stamford, Connecticut.

First Asset Funds Inc., the manager of the fund, is a wholly owned subsidiary of First Asset Management Inc., an integrated wealth management company with approximately $22 billion in assets under management or administration.

The syndicate of agents for this offering was led by CIBC World Markets Inc. and TD Securities Inc. and included RBC Dominion Securities Inc., BMO Nesbitt Burns Inc., National Bank Financial Inc., Scotia Capital Inc., Canaccord Capital Corp., Desjardins Securities Inc., Dundee Securities Corp., First Associates Investments Inc., HSBC Securities (Canada) Inc. and Raymond James Ltd.

http://www.newswire.ca/en/releases/archive/December2003/16/c2996.html